Ohana Pacific Bank has fewer assets than any bank in the state, but being a small company has its benefits when it comes to loan production.

The bank, with 21 full-time-equivalent employees, rode strong loan growth to its 18th straight profitable quarter and earned $255,000 in the January-March period. That was up 4.9 percent from $243,000 at the same time a year ago. Loans jumped 12.8 percent to $85 million from $75.4 million.

"We have been focusing on improving our loan department by strengthening our competitiveness," Ohana Pacific President and CEO James Hong said Friday. "Fast responding time and flexibility in services are our strength. This give us competitive advantages in loan production, which is reflected in loan growth during the first quarter."

The bank, which has its headquarters at 1357 Kapiolani Blvd. — a block from Ala Moana Center — also has seen its loan portfolio benefit from the in-store branch it opened in December 2013 at Palama Super Market in Kalihi.

"With an additional branch exposure, we are also able to get more referrals from our Kalihi branch," Hong said.

In March the bank paid out a 10-cents-a-share dividend, its second payout ever. The bank also paid a 10-cent dividend in the previous March.

Following its opening in June 2006, Ohana Pacific had five years of losses before turning around its operations following the recession. Last quarter, deposits grew 7 percent to a record $97.5 million from $91.1 million in the year-earlier period, putting the bank on the cusp of surpassing $100 million in deposits for the first time.

Assets rose 6.9 percent to $113 million from $105.7 million.

The bank’s net interest income — its spread between loan rates and deposit rates — increased 9.2 percent in the quarter to $926,000 from $848,000. Its net interest margin improved to 3.50 percent from 3.35 percent due to loan growth.

Ohana Pacific’s noninterest income, which includes service charges and fees, dropped 40 percent in the quarter to $54,000 from $90,000.

Chief Financial Officer Dianne Seo attributed the decline primarily to fewer overdraft fees because the bank has changed its nonsufficient-fee structure to limit the fees.

The bank’s thinly traded shares, which exchange hands on the over-the-counter market under the ticker OHPB, last traded at a 52-week high of $6.10 a share on March 5.

Ohana Pacific announced its earnings after the stock market closed.