The Federal Deposit Insurance Corporation (FDIC) has approved the purchase and assumption of the insured deposits of the Bank of Honolulu, Honolulu, Hawaii, by the Bank of the Orient, San Francisco, California.

The Bank of Honolulu, with approximately $66.9 million in assets, was closed today by Hawaii’s Commissioner of Financial Institutions, and the FDIC was named receiver.

The Bank of Honolulu’s three branch offices located in Manoa, Kapiolani and Kaneohe will reopen on Saturday, October 14, as branches of the Bank of the Orient under normal operating hours. The Bank of Honolulu’s main office located on Bishop Street in downtown Honolulu will reopen on Monday, October 16, also as a branch of the Bank of the Orient.

The failed institution had total deposits of $59.5 million in about 5,900 accounts, including approximately $2.2 million that exceeded the insurance limit. The Bank of the Orient will pay the FDIC a premium of $1 million for the right to assume the Bank of Honolulu’s insured deposits. The Bank of the Orient will also pay the FDIC an additional $855,000 above the FDIC’s estimated value to purchase approximately $52.2 million of the failing bank’s assets. Additionally, the Bank of the Orient will have a 30-day exclusive purchase option on another $9.3 million of Bank of Honolulu’s assets. The FDIC will retain the remaining assets for later disposition.