The parent of Finance Factors has rejected a $31 million unsolicited offer by a California banking company.

Finance Enterprises Ltd. said its 12-member board voted unanimously last week to turn down TFC Holdings Inc.'s $1,000-per-share offer for 31,000 shares, or 51 percent of the company's stock.

Clifford Higa, an attorney for TFC, declined comment.

TFC is the parent of Alhambra, Calif.-based TomatoBank, which has $350 million in assets and operates five branches in the Los Angeles area.

TomatoBank, known as InterBusiness Bank until it changed its name in August, was founded six years ago by Los Angeles physician Stephen Liu. The bank specializes in lending to Los Angeles' Asian-American and Hispanic communities.

Privately held Finance Factors was founded in 1952 by several prominent local Chinese families.

With $652.7 million in assets, Finance Factors operates 11 full-service branches in Hawai'i and has a mortgage center in Guam.

The unsolicited bid comes as Finance Enterprises is considering converting from a depository financial services loan company into a commercial bank.

Under its current charter, Finance Factors can offer loans, mortgages and savings accounts but can't offer checking services, debit cards and lines of credit for business customers. The conversion would allow Finance Factors to add those services.

Reach Rick Daysog at rdaysog@honoluluadvertiser.com.