Finance Factors
buying Rainbow
Financial

Star-Bulletin staff

Finance Factors Ltd. has moved to acquire Rainbow Financial Corp., including its $30 million in loans and $28 million in deposits.

If approved by the Federal Deposit Insurance Corporation and the state's Division of Financial Institutions, the deal could close early next month. No purchase price was disclosed. Rainbow plans to close both its Oahu branch offices upon completion of the deal, a move that will affect 10 Rainbow employees. Steve Teruya, president of Finance Factors, said in a statement that efforts will be made to place the employees at Finance Factors or at other companies.

"Due to its small size, Rainbow Financial found it increasingly difficult to provide its customers with the full range of products and services cost-effectively," said Teruya.

"By agreeing to sell its loans and deposits to Finance Factors, Rainbow Financial's customers will benefit from being able to choose from a wide range of products and services that are competitively priced," he said. The purchase includes about 2,200 Rainbow Financial accounts. Rainbow customers are to get details of account transfers later this month.

Rainbow Financial, the second-largest federally insured financial services loan company in Hawaii, behind Finance Factors, began operations in Hawaii in 1961 as Hawaii Diversified Services. Inc. It changed its name in 1971.