Ohana Pacific Bank’s net income jumped 19 percent in the second quarter primarily due to an improved margin between what it brings in from loans and what it pays depositors.

The state’s smallest bank chalked up its 19th straight profitable quarter and earned $288,000 in the April-June period compared with $242,000 in the year-earlier quarter.

Its net interest margin — the spread between loan and deposit rates — improved to 3.45 percent from 3.27 percent in the year-earlier quarter.

The bank, which has 20 full-time equivalent employees, increased its loan portfolio by 3.9 percent to $80.1 million from $77.1 million and boosted its deposits to $98.3 million from $97.3 million.

“Although we experienced several commercial real estate loan payoffs in the second quarter, which caused a decrease in our loan portfolio balance from the first quarter, overall loan production continues to be active and at an increasing trend, especially when taking into consideration the $3 million increase in total loans from this point last year,” Ohana Pacific President and CEO James Hong said Wednesday.

The bank’s net interest income, thanks to the improving margin, jumped 10.5 percent to $936,000 from $847,000. Noninterest income, which includes service charges and fees, fell 9.4 percent to $58,000 from $64,000 due to a decrease in overdraft fees.

The bank, which has its headquarters at 1357 Kapiolani Blvd. — a block from Ala Moana Center — also has an in-store branch that opened in December 2013 at Palama Super Market in Kalihi.

Following its opening in June 2006, Ohana Pacific had five years of losses before turning around its operations following the recession.

The bank’s thinly traded shares, which change hands on the over-the-counter market under the ticker OHPB, last traded at $5.92 on July 6.

Ohana Pacific announced its earnings after the stock market closed.