OP Bancorp Reports Third Quarter 2025 Net Income of $6.7 Million, Diluted EPS of $0.45
MWN-AI** Summary
OP Bancorp (NASDAQ: OPBK), the parent company of Open Bank, reported robust financial results for the third quarter of 2025, achieving a net income of $6.7 million, or a diluted earnings per share (EPS) of $0.45. This reflects a solid 6% increase in net income compared to $6.3 million in the previous quarter and a significant 23% rise from $5.4 million in Q3 2024. The recent quarter's EPS represents a 7% uptick from the $0.42 per share recorded in Q2 2025 and a 25% increase from last year.
The bank's financial performance was boosted by a 3% rise in total revenue, supported by higher net interest income, which grew to $20.3 million—a 3% increase from the previous quarter and 23% year-over-year. The net interest margin expanded by three basis points to 3.26%. Meanwhile, noninterest income increased by 4%. OP Bancorp's operational efficiency also improved, with a reduction of noninterest expenses by 3%, resulting in an efficiency ratio of 55.68%.
In terms of credit quality, OP Bancorp maintained a stable profile, with low net charge-offs of 0.04% and a steady allowance for credit losses at 1.27% of gross loans. Total loans increased to $2.15 billion, marking a 4% rise from the previous quarter and an 11% increase from Q3 2024. Total deposits also showed growth, reaching $2.27 billion, which is up 10% year-over-year.
Sang K. Oh, the CEO, emphasized the company's commitment to sustainable growth and sound financial management as they navigate through market challenges, ensuring the robustness of their portfolio continues to support their operational success.
MWN-AI** Analysis
**Market Analysis and Advice for OP Bancorp (NASDAQ: OPBK)**
OP Bancorp's Q3 2025 results reflect solid growth and operational efficiency. With net income increasing to $6.7 million from $6.3 million in Q2 2025, and diluted earnings per share (EPS) rising to $0.45, there are several indicators for potential investors to consider.
The increase in net interest income, which rose 3% to $20.3 million, alongside a stable net interest margin of 3.26%, highlights the bank's ability to effectively manage its loan portfolio and funding costs. Given the low net charge-offs at just 0.04% of average gross loans, OP Bancorp's asset quality remains robust, suggesting a prudent lending strategy and strong risk management framework.
Additionally, the bank's efficiency ratio improved significantly to 55.68%, a positive sign of operational discipline that could attract investors looking for profitability in banking stocks. The decrease in non-interest expenses illustrates effective cost management strategies, which are essential for sustaining margins in a competitive environment.
Investors should be mindful of OP Bancorp's strategic focus on loan growth—average loans increased by 2%—and the accompanying credit quality metrics, which remain reassuring. The company's commitment to maintaining liquidity and capital ratios well above regulatory requirements reflects a strong position to weather economic uncertainties.
Looking forward, potential growth avenues include the continued expansion of the bank's loan portfolio, particularly in the Small Business Administration (SBA) and commercial real estate sectors. However, with interest rates likely to remain variable, monitoring the impact on loan yields and deposit costs will be crucial.
**Advice:** Investors might consider OP Bancorp as a buy, particularly for those focused on similarly positioned financial institutions with strong fundamentals. Maintain an eye on broader economic trends and interest rate movements, as these will significantly influence performance going forward.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
compared with second quarter 2025 net income of $6.3 million, diluted EPS of $0.42, and third quarter 2024 net income of $5.4 million, diluted EPS of $0.36
Higher revenue and net income; improved efficiency ratio; stable credit quality
OP Bancorp (the “Company”) (NASDAQ: OPBK), parent company of Open Bank, today reported:
($ in thousands, except per share data) | As of and For the Quarter | Third Quarter Highlights | ||||||||||||
3Q2025 | 2Q2025 | 3Q2024 | Comparisons reflect 3Q25 vs. 2Q25 | |||||||||||
Income Statement: | Income Statement | |||||||||||||
Net interest income | $ | 20,346 | $ | 19,721 | $ | 16,506 |
| |||||||
Noninterest income | 4,130 | 3,968 | 4,240 | |||||||||||
Revenue | 24,476 | 23,689 | 20,746 | |||||||||||
Provision for credit losses | 1,175 | 1,206 | 448 | |||||||||||
Noninterest expense | 13,629 | 14,037 | 12,720 | |||||||||||
Net income | $ | 6,703 | $ | 6,333 | $ | 5,436 | ||||||||
Diluted Earnings Per Share (“EPS”) | $ | 0.45 | $ | 0.42 | $ | 0.36 | ||||||||
Net interest margin (1) | 3.26 | % | 3.23 | % | 2.95 | % | ||||||||
Efficiency ratio (2) | 55.68 | 59.25 | 61.31 | |||||||||||
Balance Sheet: | Balance Sheet | |||||||||||||
Average loans (3) | $ | 2,132,225 | $ | 2,095,168 | $ | 1,905,952 |
| |||||||
Average deposits | 2,229,591 | 2,223,575 | 1,998,633 | |||||||||||
Credit Quality: | Credit Quality | |||||||||||||
Net charge-offs (1) to average gross loans | 0.04 | % | 0.06 | % | 0.01 | % |
| |||||||
Allowance for credit losses on loans to gross loans | 1.27 | 1.27 | 1.19 | |||||||||||
Selected Ratios: | Performance and Capital | |||||||||||||
Return on average assets ("ROA") (1) | 1.04 | % | 1.00 | % | 0.94 | % |
| |||||||
Return on average equity ("ROE") (1) | 12.36 | 11.97 | 10.95 | |||||||||||
Common equity tier 1 capital (“CET1”) | 10.92 | 11.01 | 11.57 |
| ||||||||||
| (1) | Annualized. |
| (2) | Represents noninterest expense divided by the sum of net interest income and noninterest income. |
| (3) | Includes loans held-for-sale. |
Sang K. Oh, President and Chief Executive Officer:
“We delivered another solid quarter of performance, highlighted by a 6% increase in net income supported by a 3% rise in revenue and a 3% decrease in noninterest expense compared to prior quarter. Our net interest margin expanded by 3 basis points to 3.26%, and our efficiency ratio improved to 55.68%, reflecting our continued focus on profitability and operational discipline. Credit quality remained stable, with low net charge-offs and a steady allowance for credit losses, demonstrating the strength of our portfolio and prudent risk management. As we look ahead, we remain focused on driving sustainable growth and maintaining sound financial management,” said Sang K. Oh, President and Chief Executive Officer.”
INCOME STATEMENT HIGHLIGHTS
Net Interest Income and Net Interest Margin
($ in thousands) | For the Three Months Ended | % Change 3Q2025 vs. | |||||||||||||
3Q2025 | 2Q2025 | 3Q2024 | 2Q2025 | 3Q2024 | |||||||||||
Interest Income | |||||||||||||||
Interest income | $ | 38,522 | $ | 37,665 | $ | 35,299 | 2 | % | 9 | % | |||||
Interest expense | 18,176 | 17,944 | 18,793 | 1 | (3 | ) | |||||||||
Net interest income | $ | 20,346 | $ | 19,721 | $ | 16,506 | 3 | % | 23 | % | |||||
($ in thousands) | For the Three Months Ended | Average Yield/Rate | ||||||||||||||||||||
3Q2025 | 2Q2025 | 3Q2024 | ||||||||||||||||||||
Interest | Average | Interest | Average | Interest | Average | 2Q2025 | 3Q2024 | |||||||||||||||
Interest-earning Assets: | ||||||||||||||||||||||
Loans | $ | 35,001 | 6.52 | % | $ | 34,263 | 6.56 | % | $ | 31,885 | 6.66 | % | (4) bps | (14) bps | ||||||||
Total interest-earning assets | 38,522 | 6.16 | 37,665 | 6.18 | 35,299 | 6.30 | (2) bps | (14) bps | ||||||||||||||
Interest-bearing Liabilities: | ||||||||||||||||||||||
Interest-bearing deposits | 17,442 | 4.07 | 17,475 | 4.18 | 17,921 | 4.85 | (11) bps | (78) bps | ||||||||||||||
Total interest-bearing liabilities | 18,176 | 4.06 | 17,944 | 4.18 | 18,793 | 4.82 | (12) bps | (76) bps | ||||||||||||||
Ratios: | ||||||||||||||||||||||
Net interest income / interest rate spreads | 20,346 | 2.10 | 19,721 | 2.00 | 16,506 | 1.48 | 10 bps | 62 bps | ||||||||||||||
Net interest margin | 3.26 | 3.23 | 2.95 | 3 bps | 31 bps | |||||||||||||||||
Total deposits / cost of deposits | 17,442 | 3.10 | 17,475 | 3.15 | 17,921 | 3.57 | (5) bps | (47) bps | ||||||||||||||
Total funding liabilities / cost of funds | 18,176 | 3.13 | 17,944 | 3.17 | 18,793 | 3.60 | (4) bps | (47) bps | ||||||||||||||
(1) Annualized. | ||||||||||||||||||||||
($ in thousands) | For the Three Months Ended | Average Yield | |||||||||||||||||||||||
3Q2025 | 2Q2025 | 3Q2024 | |||||||||||||||||||||||
Interest | Average | Interest | Average | Interest | Average | 2Q2025 | 3Q2024 | ||||||||||||||||||
Loan Yield Component: | |||||||||||||||||||||||||
Contractual interest rate | $ | 34,312 | 6.40 | % | $ | 33,437 | 6.40 | % | $ | 31,182 | 6.52 | % | — bps | (12) bps | |||||||||||
Accretion of SBA loan discount (2) | 972 | 0.18 | 785 | 0.15 | 918 | 0.19 | 3 bps | (1) bps | |||||||||||||||||
Amortization of net deferred fees | 70 | 0.01 | (60 | ) | (0.01 | ) | 23 | 0.00 | 2 bps | 1 bps | |||||||||||||||
Amortization of premium | (321 | ) | (0.06 | ) | (329 | ) | (0.06 | ) | (487 | ) | (0.10 | ) | — bps | 4 bps | |||||||||||
Amortization of premium - Home mortgage payoffs | (35 | ) | (0.01 | ) | (63 | ) | (0.01 | ) | — | — | — bps | (1) bps | |||||||||||||
Net interest recognized on nonaccrual loans | (224 | ) | (0.04 | ) | 162 | 0.03 | (61 | ) | (0.01 | ) | (7) bps | (3) bps | |||||||||||||
Prepayment penalty income and other fees (3) | 227 | 0.04 | 331 | 0.06 | 310 | 0.06 | (2) bps | (2) bps | |||||||||||||||||
Yield on loans | $ | 35,001 | 6.52 | % | $ | 34,263 | 6.56 | % | $ | 31,885 | 6.66 | % | (4) bps | (14) bps | |||||||||||
(1) | Annualized. |
(2) | Includes discount accretion from SBA loan payoffs of $499 thousand, $293 thousand and $426 thousand for the three months ended September 30, 2025, June 30, 2025 and September 30, 2024, respectively. |
(3) | Includes prepayment penalty income of $127 thousand, $166 thousand and $114 thousand for the three months ended September 30, 2025, June 30, 2025 and September 30, 2024, respectively, from Commercial Real Estate (“CRE”) and SBA loans. |
Third Quarter 2025 vs. Second Quarter 2025
Net interest income increased by $625 thousand, or 3%, primarily driven by loan growth, partially offset by higher borrowings and lower loan yields. Net interest margin expanded by 3 basis points to 3.26%.
- Loans : Interest income increased by $738 thousand, largely attributable to a $37.1 million increase in average loan balances. This increase was partially offset by a 4 basis point decline in loan yields, reflecting increased interest income reversals due to changes in nonaccrual status compared to the prior quarter.
- Borrowings : Interest expense increased by $265 thousand, mainly due to a $29.5 million increase in average balances of Federal Home Loan Bank (“FHLB”) advances.
- Deposits : Interest expense decreased slightly by $33 thousand, primarily due to an 11 basis point reduction in interest-bearing deposit costs, reflecting the repricing of time deposits in response to the downward shift in federal funds rate that began in the late 2024. The decrease was nearly offset by a $24.6 million increase in average interest-bearing deposit balances.
Third Quarter 2025 vs. Third Quarter 2024
Net interest income increased by $3.8 million, or 23%. The increase was due to loan growth and lower deposit rates. These changes were partially offset by interest-bearing deposit growth. Net interest margin rose 31 basis points to 3.26%.
- Loans : Interest income increased by $3.1 million, largely driven by a $226.3 million increase in average loan balances. This increase was partially offset by a 14 basis point decline in loan yields, reflecting the repricing of existing loans at lower interest rates following the 2024 reduction in the federal funds rate.
- Deposits : Interest expense decreased by $479 thousand, mainly driven by a 78 basis point reduction in interest-bearing deposit costs, resulting from the repricing of deposit products in response to the federal funds rate cut implemented in 2024. This decrease was partially offset by a $230.2 million increase in average interest-bearing deposit balances.
Provision for Credit Losses
($ in thousands) | For the Three Months Ended | $ Change 3Q2025 vs. | |||||||||||||||||
3Q2025 | 2Q2025 | 3Q2024 | 2Q2025 | 3Q2024 | |||||||||||||||
Provision for credit losses on loans | $ | 1,206 | $ | 1,255 | $ | 234 | $ | (49 | ) | $ | 972 | ||||||||
Provision for (reversal of) credit losses on off-balance sheet exposure | (31 | ) | (49 | ) | 214 | 18 | (245 | ) | |||||||||||
Provision for credit losses | $ | 1,175 | $ | 1,206 | $ | 448 | $ | (31 | ) | $ | 727 |
Third Quarter 2025 vs. Second Quarter 2025
Provision for credit losses on loans remained relatively stable, decreasing by $49 thousand. The modest decline was primarily driven by reductions in qualitative reserves, following qualitative factor adjustments made after management reassessed the underlying assumptions. These adjustments were mostly offset by the increases resulting from risk rating downgrades and net charge-offs.
Third Quarter 2025 vs. Third Quarter 2024
Provision for credit losses on loans increased by $972 thousand, primarily due to higher historical loss factors stemming from risk rating downgrades, increased specific reserves, net charge-offs, and loan growth compared to the prior period.
Noninterest Income
($ in thousands) | For the Three Months Ended | % Change 3Q2025 vs. | |||||||||||||||||
3Q2025 | 2Q2025 | 3Q2024 | 2Q2025 | 3Q2024 | |||||||||||||||
Noninterest Income | |||||||||||||||||||
Service charges on deposits | $ | 725 | $ | 1,017 | $ | 889 | (29 | )% | (18 | )% | |||||||||
Loan servicing fees, net of amortization | 724 | 900 | 693 | (20 | ) | 4 | |||||||||||||
Gains on sale of loans | 2,037 | 1,441 | 2,088 | 41 | (2 | ) | |||||||||||||
Other income | 644 | 610 | 570 | 6 | 13 | ||||||||||||||
Total noninterest income | $ | 4,130 | $ | 3,968 | $ | 4,240 | 4 | % | (3 | )% | |||||||||
Third Quarter 2025 vs. Second Quarter 2025
Noninterest income increased by $162 thousand, or 4%, primarily due to higher gains on sale of loans, partially offset by declines in service charges on deposits and loan servicing fees.
- Gains on Sale of Loans : Increased by $596 thousand, primarily driven by higher SBA loan sale activity. During the quarter, the Bank sold $36.8 million in SBA loans at an average premium rate of 6.71%, compared to $25.3 million sold at an average premium rate of 7.05% in the prior period.
- Service Charges on Deposits : Decreased by $292 thousand, primarily due to the closure of certain currency exchange-related accounts.
- Loan Servicing Fees, Net of Amortization : Decreased by $176 thousand, mainly due to higher amortization of servicing assets, reflecting elevated payoff activity within servicing portfolio.
Third Quarter 2025 vs. Third Quarter 2024
Noninterest income decreased by $110 thousand, or 3%, primarily due to lower service charges on deposits.
- Service Charges on Deposits : Decreased by $164 thousand, largely driven by the closure of certain currency exchange-related accounts.
Noninterest Expense
($ in thousands) | For the Three Months Ended | % Change 3Q2025 vs. | |||||||||||||
3Q2025 | 2Q2025 | 3Q2024 | 2Q2025 | 3Q2024 | |||||||||||
Noninterest Expense | |||||||||||||||
Salaries and employee benefits | $ | 8,892 | $ | 9,075 | $ | 8,031 | (2 | )% | 11 | % | |||||
Occupancy and equipment | 1,676 | 1,584 | 1,676 | 6 | — | ||||||||||
Data processing and communication | 263 | 306 | 634 | (14 | ) | (59 | ) | ||||||||
Professional fees | 419 | 418 | 346 | 0 | 21 | ||||||||||
FDIC insurance and regulatory assessments | 428 | 506 | 391 | (15 | ) | 9 | |||||||||
Promotion and advertising | 126 | 232 | 151 | (46 | ) | (17 | ) | ||||||||
Directors’ fees | 151 | 198 | 154 | (24 | ) | (2 | ) | ||||||||
Foundation donation and other contributions | 671 | 636 | 549 | 6 | 22 | ||||||||||
Other expenses | 1,003 | 1,082 | 788 | (7 | ) | 27 | |||||||||
Total noninterest expense | $ | 13,629 | $ | 14,037 | $ | 12,720 | (3 | )% | 7 | % | |||||
Third Quarter 2025 vs. Second Quarter 2025
Noninterest expense decreased by $408 thousand, or 3%, primarily due to reductions in salaries and employee benefits, promotion and advertising, and other expenses.
- Salaries and Employee Benefits : Decreased by $183 thousand, mainly due to lower incentive compensation accruals, resulting from a non-recurring adjustment recognized in the prior quarter.
- Promotion and Advertising : Decreased by $106 thousand, reflecting the absence of a one-time accrual adjustment that was recorded in the second quarter of 2025.
- Other Expenses : Decreased by $79 thousand, primarily due to reduced armored car service costs following the closure of certain currency exchange-related accounts.
Third Quarter 2025 vs. Third Quarter 2024
Noninterest expense increased by $909 thousand, or 7%, primarily due to higher salaries and employee benefits, and other expenses, partially offset by lower data processing and communication.
- Salaries and Employee Benefits : Increased by $861 thousand, mainly driven by staffing growth and annual merit-based salary adjustments. Higher health insurance costs also contributed to the increase in employee benefits.
- Other Expenses: Increased by $215 thousand, primarily due to reclassification of credit-related fees collections from contra-expense to income in 2025. This regrouping reflects a change in presentation rather than a change in underlying activity.
- Data Processing and Communication : Decreased by $371 thousand, largely due to contractual credits received following the conversion to a new core banking system in the fourth quarter of 2024.
Income Tax Expense
Third Quarter 2025 vs. Second Quarter 2025
Income tax expense increased by $856 thousand to $3.0 million, with the effective tax rate rising to 30.7% from 25.0%. The increases were primarily driven by higher pre-tax income and a one-time revaluation of deferred tax assets, associated with the adoption of the California’s single sales factor apportionment method and the implementation of an enhanced interim state tax apportionment methodology.
Third Quarter 2025 vs. Third Quarter 2024
Income tax expense increased by $827 thousand to $3.0 million, with the effective tax rate rising to 30.7% from 28.3%. The increases were primarily attributable to the factors noted above.
BALANCE SHEET HIGHLIGHTS
Loans
($ in thousands) | As of | % Change 3Q2025 vs. | |||||||||||||
3Q2025 | 2Q2025 | 3Q2024 | 2Q2025 | 3Q2024 | |||||||||||
CRE | $ | 1,092,808 | $ | 1,021,431 | $ | 966,472 | 7 | % | 13 | % | |||||
SBA | 256,211 | 263,424 | 252,379 | (3 | ) | 2 | |||||||||
C&I | 214,419 | 193,359 | 212,476 | 11 | 1 | ||||||||||
Home mortgage | 587,641 | 593,256 | 499,666 | (1 | ) | 18 | |||||||||
Consumer & other | 138 | 110 | 14 | 25 | 886 | ||||||||||
Gross loans | $ | 2,151,217 | $ | 2,071,580 | $ | 1,931,007 | 4 | % | 11 | % | |||||
The following table presents loan originations and the corresponding weighted average contractual rates for the periods indicated:
($ in thousands) | For the Three Months Ended | % Change in Amounts 3Q2025 vs. | ||||||||||||||||||||||
3Q2025 | 2Q2025 | 3Q2024 | 2Q2025 | 3Q2024 | ||||||||||||||||||||
Amount | Rate | Amount | Rate | Amount | Rate | |||||||||||||||||||
CRE | $ | 98,799 | 6.36 | % | $ | 39,734 | 7.00 | % | $ | 64,249 | 7.50 | % | 149 | % | 54 | % | ||||||||
SBA | 15,051 | 8.72 | 33,811 | 8.64 | 20,167 | 9.75 | (55 | ) | (25 | ) | ||||||||||||||
C&I | 9,984 | 6.96 | 3,136 | 7.72 | 7,861 | 8.18 | 218 | 27 | ||||||||||||||||
Home mortgage | 6,861 | 6.69 | 54,837 | 6.64 | 10,205 | 7.23 | (87 | ) | (33 | ) | ||||||||||||||
Consumer and other | — | — | — | — | — | — | — | — | ||||||||||||||||
Gross loans (1) | $ | 130,695 | 6.69 | % | $ | 131,518 | 7.29 | % | $ | 102,482 | 7.97 | % | (1 | )% | 28 | % | ||||||||
(1) Excludes changes in line utilization. | ||||||||||||||||||||||||
The following table summarizes the loan activity for the periods indicated:
($ in thousands) | For the Three Months Ended | |||||||||||
3Q2025 | 2Q2025 | 3Q2024 | ||||||||||
Beginning Balance | $ | 2,071,580 | $ | 2,043,885 | $ | 1,870,106 | ||||||
Originations | 130,695 | 131,518 | 102,482 | |||||||||
Net change in line utilization | 31,167 | 27,287 | 49,695 | |||||||||
Purchases | 8,930 | 1,750 | 862 | |||||||||
Sales | (36,806 | ) | (25,320 | ) | (35,576 | ) | ||||||
Payoffs & paydowns | (67,639 | ) | (90,923 | ) | (54,440 | ) | ||||||
Decrease (increase) in loans held-for-sale | 13,536 | (15,461 | ) | (1,674 | ) | |||||||
Other | (246 | ) | (1,156 | ) | (448 | ) | ||||||
Total | 79,637 | 27,695 | 60,901 | |||||||||
Ending balance | $ | 2,151,217 | $ | 2,071,580 | $ | 1,931,007 | ||||||
The following table presents the composition of gross loans by interest rate type accompanied with the weighted average contractual rates as of the periods indicated:
($ in thousands) | As of | |||||||||||||||||
3Q2025 | 2Q2025 | 3Q2024 | ||||||||||||||||
% | Rate | % | Rate | % | Rate | |||||||||||||
Fixed rate | 31 | % | 5.61 | % | 31 | % | 5.54 | % | 36 | % | 5.42 | % | ||||||
Hybrid rate | 41 | 5.89 | 40 | 5.81 | 35 | 5.60 | ||||||||||||
Variable rate | 28 | 8.02 | 29 | 8.16 | 29 | 8.94 | ||||||||||||
Gross loans | 100 | % | 6.40 | % | 100 | % | 6.42 | % | 100 | % | 6.52 | % | ||||||
The following table presents the maturity of gross loans by interest rate type accompanied with the weighted average contractual rates for the periods indicated:
($ in thousands) | As of September 30, 2025 | |||||||||||||||||||||||
Within One Year | One Year Through | After Five Years | Total | |||||||||||||||||||||
Amount | Rate | Amount | Rate | Amount | Rate | Amount | Rate | |||||||||||||||||
Fixed rate | $ | 212,026 | 5.66 | % | $ | 274,741 | 6.02 | % | $ | 191,661 | 4.98 | % | $ | 678,428 | 5.61 | % | ||||||||
Hybrid rate | — | — | 209,456 | 4.74 | 664,989 | 6.26 | 874,445 | 5.89 | ||||||||||||||||
Variable rate | 84,705 | 7.60 | 158,959 | 7.49 | 354,680 | 8.36 | 598,344 | 8.02 | ||||||||||||||||
Gross loans | $ | 296,731 | 6.21 | % | $ | 643,156 | 5.97 | % | $ | 1,211,330 | 6.67 | % | $ | 2,151,217 | 6.40 | % | ||||||||
Allowance for Credit Losses
The following table summarizes the activity in the allowance for credit losses for the periods presented:
($ in thousands) | As of and For the Three Months Ended | $ Change 3Q2025 vs. | ||||||||||||||||||
3Q2025 | 2Q2025 | 3Q2024 | 2Q2025 | 3Q2024 | ||||||||||||||||
Allowance for credit losses on loans, beginning | $ | 26,286 | $ | 25,368 | $ | 22,760 | $ | 918 | $ | 3,526 | ||||||||||
Provision for credit losses on loans | 1,206 | 1,255 | 234 | (49 | ) | 972 | ||||||||||||||
Gross charge-offs | (195 | ) | (542 | ) | (40 | ) | 347 | (155 | ) | |||||||||||
Gross recoveries | 2 | 205 | 6 | (203 | ) | (4 | ) | |||||||||||||
Net (charge-offs) recoveries | (193 | ) | (337 | ) | (34 | ) | 144 | (159 | ) | |||||||||||
Allowance for credit losses on loans, ending | $ | 27,299 | $ | 26,286 | $ | 22,960 | $ | 1,013 | $ | 4,339 | ||||||||||
Allowance for credit losses on off-balance sheet exposure, beginning | $ | 360 | $ | 409 | $ | 458 | $ | (49 | ) | $ | (98 | ) | ||||||||
Provision for (reversal of) credit losses on off-balance sheet exposure | (31 | ) | (49 | ) | 214 | 18 | (245 | ) | ||||||||||||
Allowance for credit losses on off-balance sheet exposure, ending | $ | 329 | $ | 360 | $ | 672 | $ | (31 | ) | $ | (343 | ) | ||||||||
Asset Quality
($ in thousands) | As of and For the Three Months Ended | % or Basis Point Change 3Q2025 vs. | ||||||||||||||||
3Q2025 | 2Q2025 | 3Q2024 | 2Q2025 | 3Q2024 | ||||||||||||||
Accruing loans 30-89 days past due | $ | 5,386 | $ | 9,804 | $ | 10,306 | (45 | )% | (48 | )% | ||||||||
As a % of gross loans | 0.25 | % | 0.47 | % | 0.53 | % | (22) bps | (28) bps | ||||||||||
Nonperforming loans (1) | $ | 12,312 | $ | 8,916 | $ | 3,620 | 38 | % | 240 | % | ||||||||
Nonperforming assets (1) | 13,157 | 10,153 | 4,857 | 30 | 171 | |||||||||||||
Nonperforming loans to gross loans | 0.57 | % | 0.43 | % | 0.19 | % | 14 bps | 38 bps | ||||||||||
Nonperforming assets to total assets | 0.50 | 0.40 | 0.20 | 10 bps | 30 bps | |||||||||||||
Criticized loans (2)(3) | $ | 28,075 | $ | 23,758 | $ | 16,500 | 18.2 | % | 70.2 | % | ||||||||
Criticized loans to gross loans | 1.31 | % | 1.15 | % | 0.85 | % | 16 bps | 46 bps | ||||||||||
Allowance for credit losses ratios: | ||||||||||||||||||
As a % of gross loans | 1.27 | % | 1.27 | % | 1.19 | % | — bps | 8 bps | ||||||||||
As a % of nonperforming loans | 222 | 295 | 634 | (73 | )% | (412 | )% | |||||||||||
As a % of nonperforming assets | 207 | 259 | 473 | (52 | ) | (266 | ) | |||||||||||
As a % of criticized loans | 97 | 111 | 139 | (14 | ) | (42 | ) | |||||||||||
Net charge-offs (4) to average gross loans | 0.04 | 0.06 | 0.01 | (2) bps | 3 bps | |||||||||||||
(1) | Excludes the guaranteed portion of loans that were in liquidation totaling $17.6 million, $13.9 million and $11.1 million as of September 30, 2025, June 30, 2025 and September 30, 2024, respectively. |
(2) | Excludes the guaranteed portion of loans that were in liquidation totaling $20.8 million, $17.1 million and $11.1 million as of September 30, 2025, June 30, 2025 and September 30, 2024, respectively. |
(3) | Consists of special mention, substandard, doubtful and loss categories. |
(4) | Annualized. |
Credit quality remained strong during the period, with nonperforming loans at a low 0.57% of gross loans and annualized net charge-offs at just 0.04%. The allowance remained adequate at 1.27% of gross loans.
- Accruing loans 30-89 days past due decreased to $5.4 million, primarily due to $4.2 million in SBA and home mortgage loans returning to current status and $2.5 million in reclassified SBA loans to nonaccrual status. These reductions were partially offset by $2.8 million in new past due balances across various loan categories.
- Nonperforming loans increased by $3.4 million, primarily attributable to the reclassification of loans previously in the accruing 30-89 days past due category.
- Criticized loans increased by $4.3 million, primarily attributable to downgrades of SBA and home mortgage loans.
Deposits
($ in thousands) | As of | % Change 3Q2025 vs. | ||||||||||||||||||||||
3Q2025 | 2Q2025 | 3Q2024 | ||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | 2Q2025 | 3Q2024 | |||||||||||||||||
Noninterest-bearing deposits | $ | 543,972 | 24 | % | $ | 565,683 | 25 | % | $ | 561,801 | 27 | % | (4 | )% | (3 | )% | ||||||||
Money market deposits and others | 402,891 | 18 | 431,252 | 19 | 343,188 | 17 | (7 | ) | 17 | |||||||||||||||
Time deposits | 1,326,554 | 58 | 1,257,793 | 56 | 1,159,614 | 56 | 5 | 14 | ||||||||||||||||
Total deposits | $ | 2,273,417 | 100 | % | $ | 2,254,728 | 100 | % | $ | 2,064,603 | 100 | % | 1 | % | 10 | % | ||||||||
Estimated uninsured deposits | $ | 1,131,091 | 50 | % | $ | 1,156,311 | 51 | % | $ | 946,406 | 46 | % | (2 | )% | 20 | % | ||||||||
As of September 30, 2025 vs. June 30, 2025
Total deposits increased by $18.7 million or 1%, primarily driven by a $68.8 million increase in time deposits, partially offset by a $28.4 million decrease in money market deposits and others, and a $21.7 million decrease in noninterest-bearing deposits. The increase in time deposits reflects new customers opening CD accounts, existing customers reallocating funds seeking higher yields, and a rise in wholesale CD balances to support loan growth. The declines in money market and noninterest-bearing deposits were primarily attributable to reductions in existing customer balances, reflecting operational funding needs.
As of September 30, 2025 vs. September 30, 2024
Total deposits increased by $208.8 million or 10%, primarily driven by growth of $166.9 million in time deposits and $59.7 million in money market deposits and others. The increase in time deposits was largely attributable to new customers opening CD accounts, reflecting a preference for higher-yielding products, as well as an increase in wholesale CD balances. The growth in money market deposits and others was mainly due to inflows from new customers and higher balances from existing customers.
The following table sets forth the maturity of time deposits as of September 30, 2025:
As of September 30, 2025 | ||||||||||||||||||||||||
($ in thousands) | Within | Three to | Six to | Nine to | After | Total | ||||||||||||||||||
Time deposits (greater than $250) | $ | 190,867 | $ | 281,670 | $ | 101,862 | $ | 93,108 | $ | 376 | $ | 667,883 | ||||||||||||
Time deposits ($250 or less) | 236,668 | 194,941 | 105,386 | 120,316 | 1,360 | 658,671 | ||||||||||||||||||
Total time deposits | $ | 427,535 | $ | 476,611 | $ | 207,248 | $ | 213,424 | $ | 1,736 | $ | 1,326,554 | ||||||||||||
Weighted average rate | 4.28 | % | 4.16 | % | 4.26 | % | 4.18 | % | 2.84 | % | 4.21 | % | ||||||||||||
OTHER HIGHLIGHTS
Liquidity
The Company maintains ample access to liquidity, including highly liquid assets on our balance sheet and available unused borrowings from other financial institutions. The following table presents the Company's liquid assets and available borrowings as of dates presented:
($ in thousands) | 3Q2025 | 2Q2025 | 3Q2024 | |||||||||
Liquidity Assets: | ||||||||||||
Cash and cash equivalents | $ | 166,748 | $ | 205,388 | $ | 166,756 | ||||||
Available-for-sale ("AFS") debt securities | 200,760 | 175,000 | 199,373 | |||||||||
Liquid assets | $ | 367,508 | $ | 380,388 | $ | 366,129 | ||||||
Liquid assets to total assets | 14 | % | 15 | % | 15 | % | ||||||
Available Borrowings: | ||||||||||||
Federal Home Loan Bank ("FHLB") —San Francisco | $ | 430,887 | $ | 443,207 | $ | 397,617 | ||||||
Federal Reserve Bank | 210,584 | 223,373 | 207,782 | |||||||||
Pacific Coast Bankers Bank | 50,000 | 50,000 | 50,000 | |||||||||
Zions Bank | 25,000 | 25,000 | 25,000 | |||||||||
First Horizon Bank | 25,000 | 25,000 | 25,000 | |||||||||
Total available borrowings | $ | 741,471 | $ | 766,580 | $ | 705,399 | ||||||
Total available borrowings to total assets | 28 | % | 30 | % | 30 | % | ||||||
Liquid assets and available borrowings to total deposits | 49 | % | 51 | % | 52 | % | ||||||
Capital and Capital Ratios
On October 23, 2025, the Company’s Board of Directors declared a quarterly cash dividend of $0.12 per share of its common stock. The dividend is payable on or about November 20, 2025, to shareholders of record as of the close of business on November 6, 2025. The principal source of funds from which the Company pays dividends are the dividends received from the Bank. Future dividends are subject to Board of Directors’ approval and will depend on the Company’s earnings, financial condition, capital requirements, and other relevant factors. On August 28, 2025, the Company’s Board of Directors approved a stock repurchase program authorizing the repurchase of up to 700,000 shares of the Company’s common stock (the “Repurchase Program”). No shares were repurchased under the Repurchase Program during the third quarter of 2025.
OP Bancorp (1) | Open Bank | Well- Capitalized | Minimum Capital | |||||||||
Risk-Based Capital Ratios (3) : | ||||||||||||
Total capital | 12.17 | % | 12.06 | % | 10.00 | % | 10.50 | % | ||||
Tier 1 capital | 10.92 | 10.81 | 8.00 | 8.50 | ||||||||
CET1 capital | 10.92 | 10.81 | 6.50 | 7.00 | ||||||||
Tier 1 leverage | 9.01 | 8.93 | 5.00 | 4.00 | ||||||||
(1) | The capital requirements are only applicable to the Bank, and the Company's ratios are included for comparison purpose. |
(2) | An additional 2.5% capital conservation buffer above the minimum capital ratios are required in order to avoid limitations on distributions, including dividend payments and certain discretionary bonuses to executive officers. This buffer does not apply and is not included in the tier 1 leverage ratio. |
(3) | The Company’s September 30, 2025 regulatory capital ratios and risk-weighted assets are preliminary. |
OP Bancorp | % or Basis Point Change 3Q2025 vs. | ||||||||||||
3Q2025 | 2Q2025 | 3Q2024 | 2Q2025 | 3Q2024 | |||||||||
Risk-Based Capital Ratios: | |||||||||||||
Total capital | 12.17 | % (1) | 12.26 | % | 12.79 | % | (9) bps | (62) bps | |||||
Tier 1 capital | 10.92 | (1) | 11.01 | 11.57 | (9) bps | (65) bps | |||||||
CET1 capital | 10.92 | (1) | 11.01 | 11.57 | (9) bps | (65) bps | |||||||
Tier 1 leverage | 9.01 | (1) | 8.96 | 9.30 | 5 bps | (29) bps | |||||||
Risk-weighted Assets ($ in thousands) | $ | 2,127,000 | (1) | $ | 2,063,034 | $ | 1,876,722 | 3 % | 13 % | ||||
(1) | The Company’s September 30, 2025 regulatory capital ratios and risk-weighted assets are preliminary. |
ABOUT OP BANCORP
OP Bancorp, the holding company for Open Bank (the “Bank”), is a California corporation whose common stock is quoted on the Nasdaq Global Market under the ticker symbol, “OPBK.” The Bank is engaged in the general commercial banking business in Los Angeles, Orange, and Santa Clara Counties in California, the Dallas metropolitan area in Texas, and Clark County in Nevada and is focused on serving the banking needs of small- and medium-sized businesses, professionals, and residents with a particular emphasis on Korean and other ethnic minority communities. The Bank currently operates twelve full-service branch offices in Downtown Los Angeles, Los Angeles Fashion District, Los Angeles Koreatown, Cerritos, Gardena, Buena Park, Garden Grove and Santa Clara, California, Carrollton, Texas and Las Vegas, Nevada. The Bank also has five loan production offices in Pleasanton, California, Atlanta, Georgia, Aurora, Colorado, Lynnwood, Washington, and Fairfax, Virginia. The Bank commenced its operations on June 10, 2005 as First Standard Bank and changed its name to Open Bank in October 2010. Its headquarters is located at 1000 Wilshire Blvd., Suite 500, Los Angeles, California 90017. Phone 213.892.9999; www.myopenbank.com .
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain matters set forth herein constitute “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder. All statements that are not statements of historical fact are forward-looking, and readers should not construe these statements of assurances of expected or intended results, or of promises that management will take a given course of action or pursue the currently expected strategies and objectives. Forward-looking statements in this report include comments about the Company’s current business plans and expectations regarding future operating results, as well as management’s statements about expected future events and economic developments, plans, strategies and objectives. All such statements reflect the current intentions, beliefs and expectations of the Company’s executive management based on currently available information and current and expected market conditions. Forward-looking statements can sometimes be identified by the use of forward-looking language, such as “likely result in,” “expects,” “anticipates,” “estimates,” “forecasts,” “projects,” “intends to,” or may include other similar words or phrases, such as “believes,” “plans,” “trend,” “objective,” “continues,” “remains,” or similar expressions, or future or conditional verbs, such as “will,” “would,” “should,” “could,” “may,” “might,” “can,” or similar verbs. Readers should not construe these statements as assurances of a given level of performance, or as promises that we will take the actions our management currently expects.
Our forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from those projected or could cause us to change plans or strategies or otherwise to take actions that differ from those we currently expect. The known risks and uncertainties that may have these effects are described in Part II, Item 1A, of our Quarterly Report on Form 10-Q for the period ended June 30, 2025, and in our other filings with the Securities and Exchange Commission. You should read all forward-looking statements in the context of the foregoing and should not consider them to be reliable predictions of future events or as assurances of a particular level of performance or intended course of action. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.
CONSOLIDATED BALANCE SHEETS (unaudited) | ||||||||||||||||||
($ in thousands) | As of | % Change 3Q2025 vs. | ||||||||||||||||
3Q2025 | 2Q2025 | 3Q2024 | 2Q2025 | 3Q2024 | ||||||||||||||
Assets | ||||||||||||||||||
Cash and due from banks | $ | 10,931 | $ | 16,592 | $ | 24,519 | (34 | )% | (55 | )% | ||||||||
Interest-bearing deposits with banks | 155,817 | 188,796 | 142,237 | (17 | ) | 10 | ||||||||||||
Cash and cash equivalents | 166,748 | 205,388 | 166,756 | (19 | ) | 0 | ||||||||||||
AFS debt securities, at fair value | 200,760 | 175,000 | 199,373 | 15 | 1 | |||||||||||||
Other investments | 17,164 | 17,101 | 16,520 | 0 | 4 | |||||||||||||
Loans held-for-sale | 6,480 | 20,016 | 8,160 | (68 | ) | (21 | ) | |||||||||||
CRE | 1,092,808 | 1,021,431 | 966,472 | 7 | 13 | |||||||||||||
SBA | 256,211 | 263,424 | 252,379 | (3 | ) | 2 | ||||||||||||
C&I | 214,419 | 193,359 | 212,476 | 11 | 1 | |||||||||||||
Home mortgage | 587,641 | 593,256 | 499,666 | (1 | ) | 18 | ||||||||||||
Consumer and other | 138 | 110 | 14 | 25 | 886 | |||||||||||||
Gross loans | 2,151,217 | 2,071,580 | 1,931,007 | 4 | 11 | |||||||||||||
Allowance for credit losses on loans | (27,299 | ) | (26,286 | ) | (22,960 | ) | 4 | 19 | ||||||||||
Net loans | 2,123,918 | 2,045,294 | 1,908,047 | 4 | 11 | |||||||||||||
Premises and equipment, net | 6,995 | 6,852 | 4,961 | 2 | 41 | |||||||||||||
Accrued interest receivable | 10,337 | 9,991 | 9,479 | 3 | 9 | |||||||||||||
Servicing assets | 10,429 | 10,572 | 10,877 | (1 | ) | (4 | ) | |||||||||||
Company owned life insurance | 23,437 | 23,259 | 22,739 | 1 | 3 | |||||||||||||
Deferred tax assets, net | 12,099 | 12,633 | 12,288 | (4 | ) | (2 | ) | |||||||||||
Other real estate owned ("OREO") | 845 | 1,237 | 1,237 | (32 | ) | (32 | ) | |||||||||||
Operating right-of-use assets | 9,347 | 9,887 | 7,870 | (5 | ) | 19 | ||||||||||||
Other assets | 25,655 | 26,365 | 19,673 | (3 | ) | 30 | ||||||||||||
Total assets | $ | 2,614,214 | $ | 2,563,595 | $ | 2,387,980 | 2 | % | 9 | % | ||||||||
Liabilities and Shareholders' Equity | ||||||||||||||||||
Liabilities: | ||||||||||||||||||
Noninterest-bearing | $ | 543,972 | $ | 565,683 | $ | 561,801 | (4 | )% | (3 | )% | ||||||||
Money market and others | 402,891 | 431,252 | 343,188 | (7 | ) | 17 | ||||||||||||
Time deposits greater than $250 | 667,883 | 643,350 | 564,547 | 4 | 18 | |||||||||||||
Other time deposits | 658,671 | 614,443 | 595,067 | 7 | 11 | |||||||||||||
Total deposits | 2,273,417 | 2,254,728 | 2,064,603 | 1 | 10 | |||||||||||||
FHLB advances | 75,000 | 50,000 | 75,000 | 50 | — | |||||||||||||
Accrued interest payable | 15,968 | 15,720 | 19,483 | 2 | (18 | ) | ||||||||||||
Operating lease liabilities | 11,826 | 12,243 | 8,417 | (3 | ) | 41 | ||||||||||||
Other liabilities | 16,504 | 17,186 | 16,874 | (4 | ) | (2 | ) | |||||||||||
Total liabilities | 2,392,715 | 2,349,877 | 2,184,377 | 2 | 10 | |||||||||||||
Shareholders' equity: | ||||||||||||||||||
Common stock | 72,984 | 72,984 | 73,697 | — | (1 | ) | ||||||||||||
Additional paid-in capital | 11,658 | 11,484 | 11,713 | 2 | 0 | |||||||||||||
Retained earnings | 148,031 | 143,114 | 131,588 | 3 | 12 | |||||||||||||
Accumulated other comprehensive loss, net of tax | (11,174 | ) | (13,864 | ) | (13,395 | ) | (19 | ) | (17 | ) | ||||||||
Total shareholders’ equity | 221,499 | 213,718 | 203,603 | 4 | 9 | |||||||||||||
Total liabilities and shareholders' equity | $ | 2,614,214 | $ | 2,563,595 | $ | 2,387,980 | 2 | % | 9 | % | ||||||||
CONSOLIDATED STATEMENTS OF INCOME (unaudited) | ||||||||||||||||||
($ in thousands, except share and per share data) | For the Three Months Ended | % or Basis Point | ||||||||||||||||
3Q2025 | 2Q2025 | 3Q2024 | 2Q2025 | 3Q2024 | ||||||||||||||
Interest income | ||||||||||||||||||
Interest and fees on loans | $ | 35,001 | $ | 34,263 | $ | 31,885 | 2 | % | 10 | % | ||||||||
Interest on AFS debt securities | 1,699 | 1,437 | 1,626 | 18 | 4 | |||||||||||||
Other interest income | 1,822 | 1,965 | 1,788 | (7 | ) | 2 | ||||||||||||
Total interest income | 38,522 | 37,665 | 35,299 | 2 | 9 | |||||||||||||
Interest expense | ||||||||||||||||||
Interest on deposits | 17,442 | 17,475 | 17,921 | 0 | (3 | ) | ||||||||||||
Interest on borrowings | 734 | 469 | 872 | 57 | (16 | ) | ||||||||||||
Total interest expense | 18,176 | 17,944 | 18,793 | 1 | (3 | ) | ||||||||||||
Net interest income | 20,346 | 19,721 | 16,506 | 3 | 23 | |||||||||||||
Provision for credit losses | 1,175 | 1,206 | 448 | (3 | ) | 162 | ||||||||||||
Net interest income after provision for credit losses | 19,171 | 18,515 | 16,058 | 4 | 19 | |||||||||||||
Noninterest income | ||||||||||||||||||
Service charges on deposits | 725 | 1,017 | 889 | (29 | ) | (18 | ) | |||||||||||
Loan servicing fees, net of amortization | 724 | 900 | 693 | (20 | ) | 4 | ||||||||||||
Gains on sale of loans | 2,037 | 1,441 | 2,088 | 41 | (2 | ) | ||||||||||||
Other income | 644 | 610 | 570 | 6 | 13 | |||||||||||||
Total noninterest income | 4,130 | 3,968 | 4,240 | 4 | (3 | ) | ||||||||||||
Noninterest expense | ||||||||||||||||||
Salaries and employee benefits | 8,892 | 9,075 | 8,031 | (2 | ) | 11 | ||||||||||||
Occupancy and equipment | 1,676 | 1,584 | 1,676 | 6 | — | |||||||||||||
Data processing and communication | 263 | 306 | 634 | (14 | ) | (59 | ) | |||||||||||
Professional fees | 419 | 418 | 346 | 0 | 21 | |||||||||||||
FDIC insurance and regulatory assessments | 428 | 506 | 391 | (15 | ) | 9 | ||||||||||||
Promotion and advertising | 126 | 232 | 151 | (46 | ) | (17 | ) | |||||||||||
Directors’ fees | 151 | 198 | 154 | (24 | ) | (2 | ) | |||||||||||
Foundation donation and other contributions | 671 | 636 | 549 | 6 | 22 | |||||||||||||
Other expenses | 1,003 | 1,082 | 788 | (7 | ) | 27 | ||||||||||||
Total noninterest expense | 13,629 | 14,037 | 12,720 | (3 | ) | 7 | ||||||||||||
Income before income tax expense | 9,672 | 8,446 | 7,578 | 15 | 28 | |||||||||||||
Income tax expense | 2,969 | 2,113 | 2,142 | 41 | 39 | |||||||||||||
Net income | $ | 6,703 | $ | 6,333 | $ | 5,436 | 6 | % | 23 | % | ||||||||
Book value per share, at period-end | $ | 14.88 | $ | 14.36 | $ | 13.75 | 4 | % | 8 | % | ||||||||
EPS - basic | 0.45 | 0.42 | 0.36 | 7 | 25 | |||||||||||||
EPS - diluted | 0.45 | 0.42 | 0.36 | 7 | 25 | |||||||||||||
Shares of common stock outstanding, at period-end | 14,885,614 | 14,885,614 | 14,811,671 | — | % | 0 | % | |||||||||||
Weighted average shares: | ||||||||||||||||||
- Basic | 14,885,614 | 14,859,718 | 14,812,118 | 0 | % | 0 | % | |||||||||||
- Diluted | 14,919,474 | 14,859,718 | 14,812,118 | 0 | 1 | |||||||||||||
ROA (1) | 1.04 | % | 1.00 | % | 0.94 | % | 4 bps | 10 bps | ||||||||||
ROE (1) | 12.36 | 11.97 | 10.95 | 39 bps | 141 bps | |||||||||||||
Net interest margin (1) | 3.26 | 3.23 | 2.95 | 3 bps | 31 bps | |||||||||||||
Efficiency ratio (2) | 55.68 | 59.25 | 61.31 | (357) bps | (563) bps | |||||||||||||
(1) | Annualized. |
(2) | Represents noninterest expense divided by the sum of net interest income and noninterest income. |
CONSOLIDATED STATEMENTS OF INCOME (unaudited) | |||||||||||
($ in thousands, except share and per share data) | For the Nine Months Ended | ||||||||||
3Q2025 | 3Q2024 | % or Basis Point vs. | |||||||||
Interest income | |||||||||||
Interest and fees on loans | $ | 100,953 | $ | 92,632 | 9 | % | |||||
Interest on AFS debt securities | 4,632 | 4,676 | (1 | ) | |||||||
Other interest income | 5,461 | 5,261 | 4 | ||||||||
Total interest income | 111,046 | 102,569 | 8 | ||||||||
Interest expense | |||||||||||
Interest on deposits | 51,525 | 50,939 | 1 | ||||||||
Interest on borrowings | 2,036 | 2,951 | (31 | ) | |||||||
Total interest expense | 53,561 | 53,890 | (1 | ) | |||||||
Net interest income | 57,485 | 48,679 | 18 | ||||||||
Provision for credit losses | 3,117 | 1,210 | 158 | ||||||||
Net interest income after provision for credit losses | 54,368 | 47,469 | 15 | ||||||||
Noninterest income | |||||||||||
Service charges on deposits | 2,742 | 2,294 | 20 | % | |||||||
Loan servicing fees, net of amortization | 2,631 | 2,040 | 29 | ||||||||
Gains on sale of loans | 5,497 | 6,116 | (10 | ) | |||||||
Other income | 2,044 | 1,560 | 31 | ||||||||
Total noninterest income | 12,914 | 12,010 | 8 | ||||||||
Noninterest expense | |||||||||||
Salaries and employee benefits | 26,743 | 23,440 | 14 | ||||||||
Occupancy and equipment | 4,841 | 4,991 | (3 | ) | |||||||
Data processing and communication | 865 | 1,651 | (48 | ) | |||||||
Professional fees | 1,244 | 1,147 | 8 | ||||||||
FDIC insurance and regulatory assessments | 1,421 | 1,143 | 24 | ||||||||
Promotion and advertising | 514 | 451 | 14 | ||||||||
Directors’ fees | 529 | 489 | 8 | ||||||||
Foundation donation and other contributions | 1,863 | 1,628 | 14 | ||||||||
Other expenses | 3,460 | 2,126 | 63 | ||||||||
Total noninterest expense | 41,480 | 37,066 | 12 | ||||||||
Income before income tax expense | 25,802 | 22,413 | 15 | ||||||||
Income tax expense | 7,206 | 6,315 | 14 | ||||||||
Net income | $ | 18,596 | $ | 16,098 | 16 | % | |||||
Book value per share, at period-end | $ | 14.88 | $ | 13.75 | 8 | % | |||||
EPS - basic | 1.25 | 1.06 | 18 | ||||||||
EPS - diluted | 1.25 | 1.06 | 18 | ||||||||
Shares of common stock outstanding, at period-end | 14,885,614 | 14,811,671 | 0 | % | |||||||
Weighted average shares: | |||||||||||
- Basic | 14,867,626 | 14,890,479 | 0 | % | |||||||
- Diluted | 14,894,309 | 14,890,479 | 0 | % | |||||||
ROA (1) | 0.99 | % | 0.95 | % | 4 bps | ||||||
ROE (1) | 11.70 | 11.00 | 70 bps | ||||||||
Net interest margin | 3.17 | 2.99 | 18 bps | ||||||||
Efficiency ratio (2) | 58.92 | 61.08 | (216) bps | ||||||||
(1) | Annualized. |
(2) | Represents noninterest expense divided by the sum of net interest income and noninterest income. |
ASSET QUALITY | ||||||||||||
($ in thousands) | As of and For the Three Months Ended | |||||||||||
3Q2025 | 2Q2025 | 3Q2024 | ||||||||||
Nonaccrual loans (1)(2) | $ | 12,312 | $ | 8,916 | $ | 3,620 | ||||||
Loans 90 days or more past due, accruing | — | — | — | |||||||||
Nonperforming loans | 12,312 | 8,916 | 3,620 | |||||||||
OREO | 845 | 1,237 | 1,237 | |||||||||
Nonperforming assets | $ | 13,157 | $ | 10,153 | $ | 4,857 | ||||||
Criticized loans (3) by risk categories: | ||||||||||||
Special mention loans | $ | 8,695 | $ | 9,257 | $ | 4,540 | ||||||
Classified loans (4) | 19,380 | 14,501 | 11,960 | |||||||||
Total criticized loans | $ | 28,075 | $ | 23,758 | $ | 16,500 | ||||||
Nonperforming loans to gross loans | 0.57 | % | 0.43 | % | 0.19 | % | ||||||
Nonperforming assets to gross loans & OREO | 0.61 | 0.49 | 0.25 | |||||||||
Nonperforming assets to total assets | 0.50 | 0.40 | 0.20 | |||||||||
Classified loans to gross loans | 0.90 | 0.70 | 0.62 | |||||||||
Criticized loans to gross loans | 1.31 | 1.15 | 0.85 | |||||||||
Allowance for credit losses ratios: | ||||||||||||
As a % of gross loans | 1.27 | % | 1.27 | % | 1.19 | % | ||||||
As a % of nonperforming loans | 222 | 295 | 634 | |||||||||
As a % of nonperforming assets | 207 | 259 | 473 | |||||||||
As a % of classified loans | 141 | 181 | 192 | |||||||||
As a % of criticized loans | 97 | 111 | 139 | |||||||||
Net charge-offs | $ | 193 | $ | 337 | $ | 34 | ||||||
Net charge-offs (5) to average gross loans | 0.04 | % | 0.06 | % | 0.01 | % | ||||||
(1) | Excludes loans held-for-sale. |
(2) | Excludes the guaranteed portion of loans that are in liquidation totaling $17.6 million, $13.9 million and $11.1 million as of September 30, 2025, June 30, 2025 and September 30, 2024, respectively. |
(3) | Excludes the guaranteed portion of loans that are in liquidation totaling $20.8 million, $17.1 million and $11.1 million as of September 30, 2025, June 30, 2025 and September 30, 2024, respectively. |
(4) | Consists of substandard, doubtful and loss categories. |
(5) | Annualized. |
($ in thousands) | 3Q2025 | 2Q2025 | 3Q2024 | |||||||||
Accruing delinquent loans 30-89 days past due by loan type: | ||||||||||||
CRE | $ — | $ — | $ — | |||||||||
SBA | 1,390 | 4,509 | 1,420 | |||||||||
C&I | 617 | — | — | |||||||||
Home mortgage | 852 | 298 | 2,675 | |||||||||
Total 30-59 days | 2,859 | 4,807 | 4,095 | |||||||||
CRE | — | — | — | |||||||||
SBA | 378 | 1,883 | 1,180 | |||||||||
C&I | — | — | — | |||||||||
Home mortgage | 2,149 | 3,114 | 5,031 | |||||||||
Total 60-89 days | 2,527 | 4,997 | 6,211 | |||||||||
CRE | — | — | — | |||||||||
SBA | 1,768 | 6,392 | 2,600 | |||||||||
C&I | 617 | — | — | |||||||||
Home mortgage | 3,001 | 3,412 | 7,706 | |||||||||
Total accruing delinquent loans 30-89 days past due | $ 5,386 | $ 9,804 | $ 10,306 | |||||||||
Nonaccrual loans (1) by loan type: | ||||||||||||
CRE | $ 2,365 | $ 1,802 | $ — | |||||||||
SBA | 8,538 | 5,696 | 3,213 | |||||||||
C&I | — | — | 407 | |||||||||
Home mortgage | 1,409 | 1,418 | — | |||||||||
Total nonaccrual | $ 12,312 | $ 8,916 | $ 3,620 | |||||||||
Criticized loans (2) by loan type: | ||||||||||||
CRE | $ 9,345 | $ 8,816 | $ 5,249 | |||||||||
SBA | 14,925 | 12,949 | 10,144 | |||||||||
C&I | 864 | 575 | 1,107 | |||||||||
Home mortgage | 2,941 | 1,418 | — | |||||||||
Total criticized | $ 28,075 | $ 23,758 | $ 16,500 | |||||||||
(1) | Excludes the guaranteed portion of loans that were in liquidation totaling $17.6 million, $13.9 million and $11.1 million as of September 30, 2025, June 30, 2025 and September 30, 2024, respectively. |
(2) | Excludes the guaranteed portion of loans that were in liquidation totaling $20.8 million, $17.1 million and $11.1 million as of September 30, 2025, June 30, 2025 and September 30, 2024, respectively. |
AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS | |||||||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||||
3Q2025 | 2Q2025 | 3Q2024 | |||||||||||||||||||||||||
($ in thousands) | Average | Interest | Average | Average | Interest | Average | Average | Interest | Average | ||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||
Interest-bearing deposits in other banks | $ | 134,263 | $ | 1,502 | 4.38 | % | $ | 147,874 | $ | 1,648 | 4.41 | % | $ | 109,003 | $ | 1,474 | 5.29 | % | |||||||||
Other investments | 17,112 | 320 | 7.48 | 16,961 | 317 | 7.47 | 16,432 | 314 | 7.65 | ||||||||||||||||||
AFS debt securities, at fair value | 199,766 | 1,699 | 3.40 | 180,193 | 1,437 | 3.19 | 199,211 | 1,626 | 3.26 | ||||||||||||||||||
CRE | 1,065,460 | 16,689 | 6.21 | 1,028,961 | 16,013 | 6.24 | 945,828 | 14,759 | 6.21 | ||||||||||||||||||
SBA | 286,556 | 6,841 | 9.47 | 283,130 | 6,618 | 9.38 | 268,687 | 7,107 | 10.52 | ||||||||||||||||||
C&I | 188,146 | 3,537 | 7.46 | 195,547 | 3,667 | 7.52 | 187,748 | 3,642 | 7.72 | ||||||||||||||||||
Home mortgage | 591,934 | 7,931 | 5.36 | 587,454 | 7,962 | 5.42 | 503,148 | 6,364 | 5.06 | ||||||||||||||||||
Consumer and other | 129 | 3 | 9.86 | 76 | 3 | 15.86 | 541 | 13 | 9.37 | ||||||||||||||||||
Loans (2) | 2,132,225 | 35,001 | 6.52 | 2,095,168 | 34,263 | 6.56 | 1,905,952 | 31,885 | 6.66 | ||||||||||||||||||
Total interest-earning assets | 2,483,366 | 38,522 | 6.16 | 2,440,196 | 37,665 | 6.18 | 2,230,598 | 35,299 | 6.30 | ||||||||||||||||||
Noninterest-earning assets | 83,238 | 83,394 | 88,747 | ||||||||||||||||||||||||
Total assets | $ | 2,566,604 | $ | 2,523,590 | $ | 2,319,345 | |||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||
Money market deposits and others | $ | 425,248 | $ | 3,793 | 3.54 | % | $ | 408,667 | $ | 3,586 | 3.52 | % | $ | 343,429 | $ | 3,601 | 4.17 | % | |||||||||
Time deposits | 1,275,417 | 13,649 | 4.25 | 1,267,363 | 13,889 | 4.40 | 1,127,078 | 14,320 | 5.05 | ||||||||||||||||||
Total interest-bearing deposits | 1,700,665 | 17,442 | 4.07 | 1,676,030 | 17,475 | 4.18 | 1,470,507 | 17,921 | 4.85 | ||||||||||||||||||
Borrowings | 76,250 | 734 | 3.82 | 46,707 | 469 | 4.04 | 80,326 | 872 | 4.32 | ||||||||||||||||||
Total interest-bearing liabilities | 1,776,915 | 18,176 | 4.06 | 1,722,737 | 17,944 | 4.18 | 1,550,833 | 18,793 | 4.82 | ||||||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||||||||
Noninterest-bearing deposits | 528,926 | 547,545 | 528,126 | ||||||||||||||||||||||||
Other noninterest-bearing liabilities | 43,890 | 41,624 | 41,892 | ||||||||||||||||||||||||
Total noninterest-bearing liabilities | 572,816 | 589,169 | 570,018 | ||||||||||||||||||||||||
Shareholders’ equity | 216,873 | 211,684 | 198,494 | ||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,566,604 | $ | 2,523,590 | $ | 2,319,345 | |||||||||||||||||||||
Net interest income / interest rate spreads | $ | 20,346 | 2.10 | % | $ | 19,721 | 2.00 | % | $ | 16,506 | 1.48 | % | |||||||||||||||
Net interest margin | 3.26 | % | 3.23 | % | 2.95 | % | |||||||||||||||||||||
Cost of deposits & cost of funds: | |||||||||||||||||||||||||||
Total deposits / cost of deposits | $ | 2,229,591 | $ | 17,442 | 3.10 | % | $ | 2,223,575 | $ | 17,475 | 3.15 | % | $ | 1,998,633 | $ | 17,921 | 3.57 | % | |||||||||
Total funding liabilities / cost of funds | 2,305,841 | 18,176 | 3.13 | 2,270,282 | 17,944 | 3.17 | 2,078,959 | 18,793 | 3.60 | ||||||||||||||||||
(1) | Annualized. |
(2) | Includes loans held-for-sale. |
For the Nine Months Ended | ||||||||||||||||||
3Q2025 | 3Q2024 | |||||||||||||||||
($ in thousands) | Average | Interest | Average | Average | Interest | Average | ||||||||||||
Interest-earning assets: | ||||||||||||||||||
Interest-bearing deposits in other banks | $ | 135,439 | $ | 4,522 | 4.40 | % | $ | 106,022 | $ | 4,310 | 5.34 | % | ||||||
Other investments | 16,851 | 939 | 7.43 | 16,335 | 951 | 7.76 | ||||||||||||
AFS debt securities, at fair value | 188,258 | 4,632 | 3.28 | 195,383 | 4,676 | 3.19 | ||||||||||||
CRE | 1,031,854 | 47,681 | 6.18 | 919,566 | 42,230 | 6.13 | ||||||||||||
SBA | 278,621 | 19,666 | 9.44 | 261,293 | 21,436 | 10.96 | ||||||||||||
C&I | 198,512 | 10,982 | 7.40 | 165,343 | 9,679 | 7.82 | ||||||||||||
Home mortgage | 568,811 | 22,612 | 5.30 | 505,669 | 19,207 | 5.06 | ||||||||||||
Consumer & other | 146 | 12 | 10.85 | 1,046 | 80 | 10.10 | ||||||||||||
Loans (2) | 2,077,944 | 100,953 | 6.49 | 1,852,917 | 92,632 | 6.68 | ||||||||||||
Total interest-earning assets | 2,418,492 | 111,046 | 6.13 | 2,170,657 | 102,569 | 6.30 | ||||||||||||
Noninterest-earning assets | 81,505 | 88,594 | ||||||||||||||||
Total assets | $ | 2,499,997 | $ | 2,259,251 | ||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||
Money market deposits and others | $ | 396,168 | $ | 10,463 | 3.53 | % | $ | 349,766 | $ | 11,035 | 4.21 | % | ||||||
Time deposits | 1,250,518 | 41,062 | 4.39 | 1,061,609 | 39,904 | 5.02 | ||||||||||||
Total interest-bearing deposits | 1,646,686 | 51,525 | 4.18 | 1,411,375 | 50,939 | 4.82 | ||||||||||||
Borrowings | 67,290 | 2,036 | 4.05 | 88,743 | 2,951 | 4.44 | ||||||||||||
Total interest-bearing liabilities | 1,713,976 | 53,561 | 4.18 | 1,500,118 | 53,890 | 4.80 | ||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||
Noninterest-bearing deposits | 532,867 | 523,951 | ||||||||||||||||
Other noninterest-bearing liabilities | 41,198 | 40,141 | ||||||||||||||||
Total noninterest-bearing liabilities | 574,065 | 564,092 | ||||||||||||||||
Shareholders’ equity | 211,956 | 195,041 | ||||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,499,997 | $ | 2,259,251 | ||||||||||||||
Net interest income / interest rate spreads | $ | 57,485 | 1.95 | % | $ | 48,679 | 1.50 | % | ||||||||||
Net interest margin | 3.17 | % | 2.99 | % | ||||||||||||||
Cost of deposits & cost of funds: | ||||||||||||||||||
Total deposits / cost of deposits | $ | 2,179,553 | $ | 51,525 | 3.16 | % | $ | 1,935,326 | $ | 50,939 | 3.52 | % | ||||||
Total funding liabilities / cost of funds | 2,246,843 | 53,561 | 3.19 | 2,024,069 | 53,890 | 3.56 | ||||||||||||
(1) | Annualized. |
(2) | Includes loans held-for-sale. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20251023737701/en/
Investor Relations
OP Bancorp
Jaehyun Park
EVP & CFO
213.593.4865
jaehyun.park@myopenbank.com
FAQ**
How has the 6% increase in net income for OP Bancorp OPBK in Q3 2025 compared to previous quarters impacted the company's stock performance and investor sentiment?
Given the stable credit quality and low net charge-offs reported by OP Bancorp OPBK, how might this influence investor confidence and potential future earnings growth?
What strategies is OP Bancorp OPBK employing to maintain a strong efficiency ratio and curb noninterest expenses while continuing to expand loan growth?
With the recent increase in time deposits and the significant growth in net interest income, how does OP Bancorp OPBK plan to leverage this momentum for long-term sustainability and market competitiveness?
**MWN-AI FAQ is based on asking OpenAI questions about OP Bancorp (NASDAQ: OPBK).
NASDAQ: OPBK
OPBK Trading
-3.32% G/L:
$12.83 Last:
32,205 Volume:
$13.10 Open:
