A startup bank catering to the local Korean-American community has passed a key regulatory hurdle.

The state Division of Financial Institutions said yesterday that it granted Ohana Pacific Bank preliminary approval to organize as a local bank.

While the new bank is several months away from taking deposits and making loans, the state said that Ohana Pacific's management team, business plan and its proposal to raise capital have passed its review.

"We are pleased to see continued growth in the Hawai'i financial services industry," said Nick Griffin, commissioner of the Division of Financial Institutions.

Ohana Pacific and a second startup, Pacific Rim Bank, are the first local companies to seek commercial banking licenses in more than 15 years.

In August, the Division of Financial Institutions granted a state charter to Pacific Rim Bank, which is in the process of setting up its new office at Restaurant Row.

Ohana Pacific, which plans to open a single branch at the former American Savings Bank office on Kapi'olani Boulevard near Ala Moana Center, plans to target the growing Korean-American community on O'ahu.

Woon Hyun, a former president of Los Angeles-based Pacific Union Bank, which served the Korean-American community in Southern California, will serve as Ohana Pacific's president and chief executive officer. Hyun said yesterday that the new bank hopes to open by March, pending regulatory approvals.

Hyun said Ohana Pacific will cater to local small businesses owned and operated by local Korean-Americans. According to Hyun, many Korean-American business people are more comfortable with the personalized services of a small community bank than with those offered by Hawai'i's big banks.

Hyun said the new bank plans to raise as much as $12 million in capital and will employ about 15 people.

"We think we can provide a kind of prompt and personal services that we would like to make our customer feel more comfortable," Hyun said.

According to the state, Ohana Pacific needs additional regulatory approvals before it can operate, including approval of its articles of incorporation, its corporate bylaws and its capital stock solicitation plan.

The bank also needs approval of its state charter and has to obtain deposit insurance from the Federal Deposit Insurance Corp.

Reach Rick Daysog at rdaysog@honoluluadvertiser.com.