Ohana Pacific Bank achieved its best quarter ever with net income of $293,000 in the July-September period as loans increased and deposits neared the $100 million threshold.
The state’s smallest bank, which opened in June 2006, has now achieved 16 profitable quarters in a row after five years of losses.
Third-quarter net income was up 1.4 percent from $289,000 in the year-earlier quarter as the bank was able to absorb expenses related to the in-store Kalihi branch that opened Dec. 14 within the Palama Super Market in Kalihi. Overall expenses rose 5.6 percent to $759,000 from $719,000.
Loans increased 5.2 percent to $77.1 million from $73.3 million while deposits grew 5.9 percent to $97.3 million from $91.8 million.
Ohana Pacific, which caters primarily to the Korean community and small businesses in Honolulu, said the mobile banking feature it introduced last quarter has been well received by its customers. Mobile banking customers can check on their account summary and balance, transfer funds, pay bills, deposit checks and locate branches and ATMs.
"We have had a very favorable response from customers," Ohana Pacific President and CEO James Hong said Tuesday. "The check deposit feature is especially appealing to younger customers."
Ohana Pacific, which experienced its first annual profit in 2011, initially struggled due to the economic crisis that hit soon after the bank opened. But it achieved its first profitable quarter in the October-December period of 2010.
The bank expanded last year by opening the Kalihi branch, which was its second. The bank’s main headquarters is at 1357 Kapiolani Blvd. near Ala Moana Center.
Ohana Pacific’s assets last quarter rose 5.5 percent to $112 million from $106.1 million. Its net interest income — the spread between what Ohana Pacific pays depositors and the interest income it generates from loans — increased 2.8 percent to $879,000 from $855,000. Noninterest income, which includes service charges and fees, fell 6.4 percent to $73,000 from $78,000.
Nonperforming assets — loans overdue by 90 days or more — improved as they fell 1.2 percent to $662,000 from $670,000.
