Ohana Pacific Bank Hawaii: A Comprehensive Overview

Ohana Pacific Bank Hawaii is a community-focused bank that has been serving the islands since 2007. It was founded by a group of local business leaders who wanted to create a bank that truly understands the needs of Hawaii's residents and businesses.

The bank has grown significantly over the years, with multiple branches across the state. As of 2022, Ohana Pacific Bank Hawaii has assets of over $1.3 billion, making it a significant player in the local banking market.

One of the bank's key strengths is its commitment to community development. Ohana Pacific Bank Hawaii has invested millions of dollars in local projects and initiatives, from supporting small businesses to funding educational programs.

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Ohana Pacific Bank's acquisition by a Los Angeles-based company is a significant deal worth up to $24.8 million.

The bank's roughly 250 stockholders will receive $10.25 in cash for each share they own, plus the right to get an additional 75 cents a share based on the performance of 11 specific loans.

James Hong, the bank's president and CEO, will stay on in his role and join the executive management team of the acquiring company, Commonwealth Business Bank, as a senior executive vice president.

Hong's plan is to aggressively increase market share after the merger is complete, allowing customers to access more branches and products.

Ohana Pacific Bank has 25 employees and has been limited in its lending practices due to regulatory requirements, with a current lending limit of 20% of total capital.

The bank's sale will give Commonwealth Business Bank a much higher lending limit, like $20 million or $25 million, allowing it to attract larger customers.

Ohana Pacific Bank finished 2020 with net income of $1.2 million, assets of $198 million, loans of $150 million, and deposits of $174 million.

The acquisition will also give Commonwealth Business Bank access to Ohana Pacific's consumer banking services, including residential mortgages and a low-cost core deposit base.

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Ohana Pacific Bank has a strong financial foundation, with a Texas Ratio of 0% as of September 30, 2024. This indicates that the bank has an excellent coverage of problem loans.

The bank's non-performing assets are zero, with no non-current loans and no owned real estate. To cover potential losses, Ohana Pacific Bank has $21,913,000 in equity and $1,877,000 in loan loss reserves.

One way to measure a bank's efficiency is through its Return on Equity (ROE). Ohana Pacific Bank's ROE is 5.17%, which is lower than the U.S. Bank Average of 10.02%. This suggests that the bank may not be generating as much profit from its capital as some other banks.

The bank's Capitalization is 10.61%, which is slightly lower than the U.S. Bank Average of 11.29%. This means that Ohana Pacific Bank has less equity capital to underpin its loans and other assets.

Here's a comparison of Ohana Pacific Bank's financial metrics with the U.S. Bank Average:

As of June 30, 2021, Ohana Pacific Bank had assets of $226,186,000, loans of $148,451,000, and deposits of $202,833,000.

Ohana Pacific Bank Hawaii has a strong presence in the community, with multiple branches located throughout the islands.

Their main office is located in Honolulu, and they also have branches in other major cities like Kahului and Hilo.

The bank offers a variety of personal and business banking services, including checking and savings accounts, loans, and investment products.

Their customer service team is available to assist with any banking needs, either in person or over the phone.

The bank's online banking platform allows customers to manage their accounts, pay bills, and transfer funds from the comfort of their own homes.

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Ohana Pacific Bank Hawaii is a bank with a strong presence in the state of Hawaii. Its total assets are $204.27 million.

The bank's assets are well-diversified, with a significant portion held in cash and balances due from depository institutions ($67.30 million) and interest-bearing balances ($66.84 million).

Here's a breakdown of the bank's assets:

The bank's liabilities are also substantial, with total deposits reaching $202.83 million. This is a significant portion of the bank's liabilities, indicating a strong reliance on customer deposits for funding.

The bank's equity is relatively small, with shareholders' equity totaling $2.28 million. This suggests that the bank may be more focused on lending and investing in assets rather than building up its equity base.

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Asian-American Assets play a significant role in Ohana Pacific Bank. The bank earns enough to remain independent, but acquiring it would help one of the prospective buyers compete better against First Hawaii (FHB) and Bank of Hawaii (BOH), which combined, control 67% of the Honolulu market.

Ohana Pacific was founded by Korean Americans who invested $15M to capitalize the bank in 2006. Donald Kim, a Korean-American immigrant business owner, remained the bank's largest shareholder until his death in 2018.

The majority of Honolulu's 400,000 residents are Asian Americans (54%), and given Ohana Pacific's focus on serving the Korean American market, it's safe to say a majority of the bank's assets are from Asian Americans.

Here's a snapshot of Ohana Pacific's financial situation as of 03/31/2019: