OP Bancorp 10-Q for FY2026 Q1

OP Bancorp (OPBK)

10-Q 2026-05-15 For: 2026-03-31

Added on May 17, 2026

About this 10-Q

OP Bancorp filed this 10-Q on May 15, 2026, covering the quarter ended March 31, 2026 (FY2026 Q1).

Headline figures

Quarter ended March 31, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $463K; down 53.7% from $1M a year earlier
Net income: $7.23M; up 30.1% from net income of $5.56M a year earlier
Diluted EPS: $0.48; up 29.7% from $0.37 a year earlier

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California						81-3114676
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)
1000 Wilshire Blvd., Suite 500, Los Angeles, CA						90017
(Address of principal executive offices)						(Zip Code)


Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☒
Emerging growth company	☐


	Forward-Looking Statements	1

PART I - FINANCIAL INFORMATION

Item 1.	Financial Statements (unaudited)	2
	Consolidated Balance Sheets	2
	Consolidated Statements of Income	3
	Consolidated Statements of Comprehensive Income	4
	Consolidated Statements of Changes in Shareholders' Equity	5
	Consolidated Statements of Cash Flows	6
	Notes to Consolidated Financial Statements (Unaudited)	7
	1 — Business and Basis of Presentation	7
	2 — Securities	7
	3 — Loans and Allowance for Credit Losses on Loans	10
	4 — Premises and Equipment	19
	5 — Servicing Assets	19

	6 — Borrowing Arrangements	20
	7 — Subordinated Note	20

	8 — Commitments and Contingencies	21
	9 — Stock-based Compensation Plan	22
	10 — Fair Value of Financial Instruments	23
	11 — Derivative Financial Instruments	27
	12— Regulatory Capital Matters	29
	13 — Earnings Per Share	31
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	32
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	48
Item 4.	Controls and Procedures	49

PART II - OTHER INFORMATION

Item 1.	Legal Proceedings	51
Item 1A.	Risk Factors	51
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	64
Item 5.	Other Information	64
Item 6.	Exhibits	65

SIGNATURES		66



($ in thousands)	March 31, 2026 (Unaudited)		December 31, 2025
ASSETS
Cash and due from banks	$	12,842	$	10,911
Interest-bearing deposits with banks	147,418		156,400
Cash and cash equivalents	160,260		167,311
Available-for-sale ("AFS") debt securities, at fair value	209,006		192,785
Other investments	17,213		17,208
Loans held-for-sale	9,498		11,443
Net loans (net of allowance for credit losses on loans of $28,406 and $27,975)	2,205,853		2,165,694
Premises and equipment, net	5,516		5,744
Accrued interest receivable	10,683		10,482
Servicing assets	9,834		10,057
Company owned life insurance	23,794		23,616
Deferred tax assets, net	12,417		12,438

Operating right-of-use assets	8,253		8,804
Other assets	26,300		24,644
TOTAL ASSETS	$	2,698,627	$	2,650,226

LIABILITIES
Deposits:
Noninterest-bearing	$	546,550	$	520,865
Interest-bearing:
Money market and others	398,756		388,066
Time deposits greater than $250	743,153		683,956
Other time deposits	638,835		687,660
Total deposits	2,327,294		2,280,547
Federal Home Loan Bank ("FHLB") advances	75,000		75,000
Subordinated note (net of unamortized debt issuance cost of $392 and $414)	24,607		24,586
Accrued interest payable	15,181		14,595
Operating lease liabilities	10,508		11,175
Other liabilities	13,326		16,430
Total liabilities	2,465,916		2,422,333
SHAREHOLDERS' EQUITY
Preferred stock – no par value; 10,000,000 shares authorized; no shares issued or outstanding	—		—
Common stock – no par value; 50,000,000 shares authorized; 14,894,239 and 14,889,540 shares issued and outstanding	73,018		73,018
Additional paid-in capital	11,995		11,849
Retained earnings	158,730		153,283
Accumulated other comprehensive loss, net of tax	(11,032)		(10,257)
Total shareholders’ equity	232,711		227,893
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	2,698,627	$	2,650,226



	Three Months Ended March 31,
($ in thousands, except per share data)	2026		2025
INTEREST INCOME
Interest and fees on loans	$	34,879	$	31,689
Interest on AFS debt securities	1,761		1,496
Other interest income	1,897		1,674
Total interest income	38,537		34,859
Interest expense
Interest on deposits	16,845		16,608
Interest on borrowings	679		833
Interest on subordinated note	490		—
Total interest expense	18,014		17,441
Net interest income	20,523		17,418
Provision for credit losses	412		736
Net interest income after provision for credit losses	20,111		16,682
NONINTEREST INCOME
Service charges on deposits	463		1,000
Loan servicing fees, net of amortization	722		1,007
Gains on sale of loans	2,050		2,019
Other income	797		790
Total noninterest income	4,032		4,816
NONINTEREST EXPENSE
Salaries and employee benefits	9,276		8,776
Occupancy and equipment	1,811		1,581
Data processing and communication	411		296
Professional fees	399		407
FDIC insurance and regulatory assessments	418		487
Promotion and advertising	120		156
Directors’ fees	144		180
Foundation donation and other contributions	725		556
Other expenses	929		1,375
Total noninterest expense	14,233		13,814
INCOME BEFORE INCOME TAX EXPENSE	9,910		7,684
Income tax expense	2,676		2,124
NET INCOME	$	7,234	$	5,560
BASIC EARNINGS PER SHARE ("EPS")	$	0.49	$	0.37
DILUTED EPS	$	0.48	$	0.37


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



	Common Stock			Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Shareholders’ Equity
($ in thousands, except per share data)	Shares Outstanding	Amount
Balance at December 31, 2025	14,889,540	$	73,018	$	11,849	$	153,283	$	(10,257)	$	227,893
Net income	—	—		—		7,234		—		7,234
Other comprehensive loss	—	—		—		—		(775)		(775)
Stock issued under stock-based compensation plans, net of shares withheld to satisfy tax liability	4,699	—		(34)		—		—		(34)
Stock-based compensation, net	—	—		180		—		—		180

Cash dividends declared ($0.12 per share)	—	—		—		(1,787)		—		(1,787)
Balance at March 31, 2026	14,894,239	$	73,018	$	11,995	$	158,730	$	(11,032)	$	232,711

Balance at December 31, 2024	14,819,866	$	73,697	$	11,928	$	134,781	$	(15,413)	$	204,993
Net income	—	—		—		5,560		—		5,560
Other comprehensive income	—	—		—		—		1,871		1,871
Stock issued under stock-based compensation plans, net of shares withheld to satisfy tax liability	94,395	—		(717)		—		—		(717)
Stock-based compensation, net	—	—		160		—		—		160
Repurchase of common stock	—	—		—		—		—		—
Cash dividends declared ($0.12 per share)	—	—		—		(1,778)		—		(1,778)
Balance at March 31, 2025	14,914,261	$	73,697	$	11,371	$	138,563	$	(13,542)	$	210,089



	March 31, 2026
($ in thousands)	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
U.S. Government agencies or sponsored agency securities:
Residential mortgage-backed securities	$	33,911	$	—	$	(2,625)	$	31,286
Residential collateralized mortgage obligations	184,192		652		(12,647)		172,197
Municipal securities - tax exempt	5,929		—		(406)		5,523
Total AFS debt securities	$	224,032	$	652	$	(15,678)	$	209,006



	March 31, 2026
	Less Than 12 Months				12 Months or Longer				Total
($ in thousands)	Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss
U.S. Government agencies or sponsored agency securities:
Residential mortgage-backed securities	$	4,293	$	(34)	$	26,993	$	(2,591)	$	31,286	$	(2,625)
Residential collateralized mortgage obligations	36,810		(297)		77,347		(12,350)		114,157		(12,647)
Municipal securities - tax exempt	2,977		(124)		2,546		(282)		5,523		(406)
Total AFS debt securities	$	44,080	$	(455)	$	106,886	$	(15,223)	$	150,966	$	(15,678)



($ in thousands)		CRE		SBA— Real Estate		SBA —Non- Real Estate		C&I		Home Mortgage		Consumer		Total
Balance as of December 31, 2024		$	9,290	$	5,557	$	418	$	1,844	$	7,684	$	3	$	24,796
Provision for (reversal of) credit losses	(a)	(280)		(176)		89		(105)		1,162		(3)		687
Charge-offs		—		—		(10)		(29)		(91)		—		(130)
Recoveries		—		—		15		—		—		—		15
Balance as of March 31, 2025		$	9,010	$	5,381	$	512	$	1,710	$	8,755	$	—	$	25,368


Balance as of December 31, 2025		$	10,427	$	6,385	$	587	$	1,611	$	8,956	$	9	$	27,975
Provision for (reversal of) credit losses	(a)	1,566		595		87		237		(2,079)		(6)		400
Charge-offs		—		(31)		—		—		—		—		(31)
Recoveries		14		45		3		—		—		—		62
Balance as of March 31, 2026		$	12,007	$	6,994	$	677	$	1,848	$	6,877	$	3	$	28,406



($ in thousands)		Three Months Ended March 31,
Unfunded commitments		2026		2025
Allowance for credit losses on unfunded commitments, beginning of period		$	274	$	360
(Reversal of) provision for credit losses	(b)	12		49
Allowance for credit losses on unfunded commitments, end of period		$	286	$	409
Provision for credit losses	(a) + (b)	$	412	$	736



($ in thousands)	Hotel / Motel		Retail		Single-Family Residential		Office		Total (1)(2)
As of March 31, 2026
CRE	$	6,228	$	—	$	1,079	$	—	$	7,307
SBA—real estate	5,327		2,538		—		—		7,865
SBA—non-real estate	—		—		14		139		153

Total	$	11,555	$	2,538	$	1,093	$	139	$	15,325
							$	139
As of December 31, 2025
CRE	$	2,134	$	211	$	1,079	$	—	$	3,424
SBA—real estate	4,891		1,528		—		—		6,419
Home mortgage	—		—		589		—		589
Total	$	7,025	$	1,739	$	1,668	$	—	$	10,432



($ in thousands)	Nonaccrual Loans with a Related Allowance for Credit Losses		Nonaccrual Loans without a Related Allowance for Credit Losses		Total Nonaccrual Loans		90 or More Days Past Due & Still Accruing		Total (1)
As of March 31, 2026
CRE	$	4,648	$	2,659	$	7,307	$	—	$	7,307
SBA—real estate	7,862		2,070		9,932		—		9,932
SBA—non-real estate	665		—		665		—		665
C&I	393		—		393		—		393
Home mortgage	—		—		—		—		—
Total	$	13,568	$	4,729	$	18,297	$	—	$	18,297
As of December 31, 2025
CRE	$	554	$	2,870	$	3,424	$	—	$	3,424
SBA—real estate	7,343		1,851		9,194		—		9,194
SBA—non-real estate	646		—		646		—		646
C&I	218		—		218		—		218
Home mortgage	—		589		589		—		589
Total	$	8,761	$	5,310	$	14,071	$	—	$	14,071



	Still Accruing
($ in thousands)	30-59 Days Past Due (1)		60-89 Days Past Due		90 or More Days Past Due		Nonaccrual Loans (2)		Current Accruing Loans		Total
As of March 31, 2026
CRE	$	—	$	—	$	—	$	7,307	$	1,166,059	$	1,173,366
SBA—real estate	4,307				—		9,932		246,475		260,714
SBA—non-real estate	1,067		—		—		665		21,736		23,468
C&I	9		17		—		393		218,948		219,367
Home mortgage	3,911		—		—		—		553,041		556,952
Consumer	—		—		—		—		392		392
Total	$	9,294	$	17	$	—	$	18,297	$	2,206,651	$	2,234,259
As of December 31, 2025
CRE	$	—	$	—	$	—	$	3,424	$	1,128,799	$	1,132,223
SBA—real estate	2,532		1,163		—		9,194		229,152		242,041
SBA—non-real estate	30		5		—		646		21,801		22,482
C&I	—		—		—		218		221,052		221,270
Home mortgage	557		2,005		—		589		571,149		574,300
Consumer	—		—		—		—		1,353		1,353
Total	$	3,119	$	3,173	$	—	$	14,071	$	2,173,306	$	2,193,669



($ in thousands)	Amortized Cost		Fair Value
Within one year	$	14	$	14
After one year through five years	501		490
After five years through ten years	20,594		19,061
After ten years	202,923		189,441
Total AFS debt securities	$	224,032	$	209,006



($ in thousands)	March 31, 2026		December 31, 2025
FHLB stock	$	13,156	$	13,156
Pacific Coast Bankers Bank ("PCBB") stock	190		190
Mutual fund - Community Reinvestment Act ("CRA") qualified (1)	3,762		3,757
Time deposits placed in other banks	105		105
Total other investments	$	17,213	$	17,208


Total loans
Pass	$	130,815	$	516,813	$	327,493	$	163,356	$	513,969	$	375,341	$	172,507	$	730	$	2,201,024
Special mention (1)	—		—		3,313		—		2,295		3,427		1,107		—		10,142
Substandard (1)	—		1,017		798		2,907		14,107		4,144		120		—		23,093
Doubtful (1)	—		—		—		—		—		—		—		—		—
Subtotal	$	130,815	$	517,830	$	331,604	$	166,263	$	530,371	$	382,912	$	173,734	$	730	$	2,234,259
Year-to-date charge-offs	$	—	$	19	$	—	$	—	$	9	$	3	$	—	$	—	$	31



($ in thousands)	March 31, 2026
FHLB	$	417,723
Federal Reserve Bank	204,140
Pacific Coast Bankers Bank	50,000
Zions Bank	25,000
First Horizon Bank	25,000
Total	$	721,863



Three Months Ended March 31, 2026	Modification Type		Percentage to Each Loan Segment
($ in thousands)	Payment Delay				Total

SBA—real estate (1)	$	1,744	$	1,744		0.67	%

Total	$	1,744	$	1,744

Three Months Ended March 31, 2025	Modification Type		Percentage to Each Loan Segment
($ in thousands)	Payment Delay				Total
CRE (2)	$	3,155	$	3,155		0.31	%
SBA—real estate (1)	649		649			1.08	%


Total	$	3,804	$	3,804



	Payment Performance as of March 31, 2026
($ in thousands)	Current		30 - 89 Days Past Due		90+ Days Past Due		Total
CRE	$	2,598	$	—	$	—	$	2,598
SBA—real estate (1)	3,828		1,097		—		4,925
SBA—non-real estate	—		46		—		46

Total	$	6,426	$	1,143	$	—	$	7,569



	Payment Performance as of March 31, 2025
($ in thousands)	Current		30 - 89 Days Past Due		90+ Days Past Due		Total
CRE	$	4,735	$	—	$	—	$	4,735
SBA—real estate (1)	4,095		—		—		4,095

C&I	250		—		—		250

Total	$	9,080	$	—	$	—	$	9,080



	March 31, 2026
	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term Loans		Total
($ in thousands)	2026		2025		2024		2023		2022		Prior
CRE
Pass (1)	$	97,705	$	333,051	$	242,742	$	78,628	$	220,558	$	178,436	$	12,189	$	—	$	1,163,309
Special mention	—		—		589		—		—		2,161		—		—		2,750
Substandard (1)	—		—		—		1,580		5,727		—		—		—		7,307
Doubtful	—		—		—		—		—		—		—		—		—
Subtotal	$	97,705	$	333,051	$	243,331	$	80,208	$	226,285	$	180,597	$	12,189	$	—	$	1,173,366
Year-to-date charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
SBA— real estate
Pass (1)	$	19,973	$	43,988	$	25,364	$	28,542	$	44,829	$	78,668	$	—	$	—	$	241,364
Special mention (1)	—		—		2,724		—		2,295		1,266		—		—		6,285
Substandard (1)	—		1,004		606		1,238		6,670		3,547		—		—		13,065
Doubtful	—		—		—		—		—		—		—		—		—
Subtotal	$	19,973	$	44,992	$	28,694	$	29,780	$	53,794	$	83,481	$	—	$	—	$	260,714
Year-to-date charge-offs	$	—	$	19	$	—	$	—	$	9	$	3	$	—	$	—	$	31
SBA—non-real estate
Pass (1)	$	1,795	$	5,653	$	7,783	$	3,352	$	1,536	$	2,684	$	—	$	—	$	22,803
Special mention	—		—		—		—		—		—		—		—		—
Substandard (1)	—		13		192		89		168		203		—		—		665
Doubtful (1)	—		—		—		—		—		—		—		—		—
Subtotal	$	1,795	$	5,666	$	7,975	$	3,441	$	1,704	$	2,887	$	—	$	—	$	23,468
Year-to-date charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
C&I
Pass	$	4,274	$	4,848	$	18,280	$	8,113	$	9,703	$	11,862	$	159,936	$	730	$	217,746
Special mention	—		—		—		—		—		—		1,107		—		1,107
Substandard	—		—		—		—		—		394		120		—		514
Doubtful	—		—		—		—		—		—		—		—		—
Subtotal	$	4,274	$	4,848	$	18,280	$	8,113	$	9,703	$	12,256	$	161,163	$	730	$	219,367
Year-to-date charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Home mortgage
Pass	$	7,058	$	129,273	$	33,324	$	44,721	$	237,343	$	103,691	$	—	$	—	$	555,410
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		1,542		—		—		—		1,542
Doubtful	—		—		—		—		—		—		—		—		—
Subtotal	$	7,058	$	129,273	$	33,324	$	44,721	$	238,885	$	103,691	$	—	$	—	$	556,952
Year-to-date charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Consumer
Pass	$	10	$	—	$	—	$	—	$	—	$	—	$	382	$	—	$	392
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—		—
Subtotal	$	10	$	—	$	—	$	—	$	—	$	—	$	382	$	—	$	392
Year-to-date charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—



($ in thousands, except share data)	Shares Issued	Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value
Outstanding (unvested), as of January 1, 2026	131,025	$	12.51	$	1,850

Awards vested	(7,233)	13.00

Outstanding (unvested), as of March 31, 2026	123,792	$	12.49	$	1,646



	Fair Value Measure on a Recurring Basis
($ in thousands)	Total Fair Value		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
March 31, 2026
Assets:
AFS debt securities:
U.S. Government agencies or sponsored agency securities:
Residential mortgage-backed securities	$	31,286	$	—	$	31,286	$	—
Residential collateralized mortgage obligations	172,197		—		172,197		—
Municipal securities - tax exempt	5,523		—		5,523		—
Equity Investments:
Mutual fund - CRA qualified	3,762		3,762		—		—
Derivative assets:
Interest rate products	59		—		59		—
Liabilities:
Derivative liabilities:
Interest rate products	548		—		548		—

December 31, 2025
Assets:
AFS debt securities:
U.S. Government agencies or sponsored agency securities:
Residential mortgage-backed securities	$	32,694	$	—	$	32,694	$	—
Residential collateralized mortgage obligations	154,463		—		154,463		—
Municipal securities - tax exempt	5,628		—		5,628		—
Equity Investments:
Mutual fund - CRA qualified	3,757		3,757		—		—


Liabilities:
Derivative liabilities:
Interest rate products	888		—		888		—



	Fair Value Measure on a Nonrecurring Basis
($ in thousands)	Total Fair Value		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
March 31, 2026
Collateral-dependent loans:
CRE	$	3,801	$	—	$	—	$	3,801
SBA—real estate	4,312		—		—		4,312
SBA—non-real estate	92		—		—		92



Total	$	8,205	$	—	$	—	$	8,205

December 31, 2025
Collateral-dependent loans:
CRE	$	450	$	—	$	—	$	450
SBA—real estate	3,330		—		—		3,330



Total	$	3,780	$	—	$	—	$	3,780
Total



	March 31, 2026
($ in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Fair Value
Financial assets:
Cash and cash equivalents	$	160,260	$	160,260	$	—	$	—	$	160,260
Loans held for sale	9,498		—		10,283		—		10,283
Net loans	2,205,853		—		—		2,264,983		2,264,983
Accrued interest receivable, net	10,683		952		821		8,910		10,683
Other investments:
FHLB and PCBB stock	13,346		N/A		N/A		N/A		N/A
Time deposits placed	105		—		105		—		105
Servicing assets	9,834		—		—		14,749		14,749
Financial liabilities:
Deposits	2,327,294		—		2,328,330		—		2,328,330
FHLB advances	75,000		—		88,979		—		88,979
Subordinated note, net	24,607		—		29,193		—		29,193
Accrued interest payable	15,181		—		15,181		—		15,181



	Derivative Assets					Derivative Liabilities
($ in thousands)	Notional Amount		Balance Sheet Location	Fair Value		Notional Amount		Balance Sheet Location	Fair Value
March 31, 2026
Derivatives designated as hedging instruments:
Cash flow hedges:
Interest rate products	$	25,000	Other assets	$	59	$	50,000	Other liabilities	$	548
Total derivatives designated as hedging instruments				$	59				$	548

December 31, 2025
Derivatives designated as hedging instruments:
Cash flow hedges:
Interest rate products	$	—	Other assets	$	—	$	75,000	Other liabilities	$	888
Total derivatives designated as hedging instruments				$	—				$	888



($ in thousands)	(Losses) Gains Recognized in AOCI		Location of Gains (Losses) Reclassified from AOCI into Earnings	Amount of Gains (Losses) Reclassified from AOCI into Earnings
Three Months Ended March 31, 2026
Interest rate products	$	(338)	Interest expense on deposits	$	(95)
Total	$	(338)		$	(95)
Three Months Ended March 31, 2025
Interest rate products	$	(482)	Interest expense on deposits	$	31
Total	$	(482)		$	31



	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Balance Sheet		Net Amounts of Assets presented in the Balance Sheet		Gross Amounts Not Offset in the Balance Sheet
($ in thousands)							Financial Instruments		Cash Collateral Received		Net Amount
March 31, 2026
Derivatives assets	$	59	$	—	$	59	$	—	$	59	$	—
Total	$	59	$	—	$	59	$	—	$	59	$	—

December 31, 2025
Derivatives assets	$	—	$	—	$	—	$	—	$	—	$	—
Total	$	—	$	—	$	—	$	—	$	—	$	—



	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Balance Sheet		Net Amounts of Liabilities presented in the Balance Sheet		Gross Amounts Not Offset in the Balance Sheet
($ in thousands)							Financial Instruments		Cash Collateral Posted		Net Amount
March 31, 2026
Derivatives liabilities	$	548	$	—	$	548	$	—	$	548	$	—
Total	$	548	$	—	$	548	$	—	$	548	$	—

December 31, 2025
Derivatives liabilities	$	888	$	—	$	888	$	—	$	888	$	—
Total	$	888	$	—	$	888	$	—	$	888	$	—



	March 31, 2026
	Actual (1)				Required for Capital Adequacy Purposes				Minimum To be Considered "Well Capitalized"
($ in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
Total capital (to risk-weighted assets)
Consolidated	$	295,671	13.17	%	N/A		N/A		N/A		N/A
Bank	296,036		13.18		$	179,679	8.00	%	$	224,599	10.00	%
Tier 1 capital (to risk-weighted assets)
Consolidated	242,998		10.83		N/A		N/A		N/A		N/A
Bank	267,961		11.93		134,759		6.00		179,679		8.00
Common equity Tier 1 capital (to risk-weighted assets)
Consolidated	242,998		10.83		N/A		N/A		N/A		N/A
Bank	267,961		11.93		101,069		4.50		145,989		6.50
Tier 1 capital (to average assets)
Consolidated	242,998		9.07		N/A		N/A		N/A		N/A
Bank	267,961		10.00		107,205		4.00		134,006		5.00



	Three Months Ended March 31,
($ in thousands, except share and per share data)	2026		2025
Basic
Net income	$	7,234	$	5,560
Distributed and undistributed earnings allocated to participating securities	—		(74)
Net income allocated to common shares	$	7,234	$	5,486
Weighted-average number of common shares outstanding	14,890,929		14,857,234
Basic EPS	$	0.49	$	0.37
Diluted
Net income allocated to common shares	$	7,234	$	5,486
Weighted-average number of common shares outstanding	14,890,929		14,857,234
Add: Dilutive impact of unvested restricted stock awards (1)	39,244		—
Average shares and dilutive potential common shares	14,930,173		14,857,234
Diluted earnings per common share	$	0.48	$	0.37


Overview			32
Financial Review			33
Critical Accounting Policies and Estimates			34
Results of Operations			35
Net Interest Income			35
Provision for Credit Losses			38
Noninterest Income			38
Noninterest Expense			39
Income Taxes			39
Financial Condition			39
Investment Portfolio			39
Loans			41
Allowance for Credit Losses			42
Nonperforming Assets			43
Deposits and Other Sources of Funds			44
Liquidity and Capital Resources			45
Capital Requirements			47



							Change
($ in thousands)	March 31, 2026			December 31, 2025			% or Basis Point
Balance Sheet Data:
Gross loans	$	2,234,259		$	2,193,669		2	%

Allowance for credit losses on loans	28,406			27,975			2	%
Total assets	2,698,627			2,650,226			2	%
Total deposits	2,327,294			2,280,547			2	%
Shareholders’ equity	232,711			227,893			2	%
Asset Quality Data:
Nonperforming loans to gross loans	0.82		%	0.64		%	18
Allowance for credit losses on loans to nonperforming loans	155			199			(44)	%
Allowance for credit losses on loans to gross loans	1.27			1.28			(1)
Balance Sheet and Capital Ratios:
Gross loans to total deposits	96		%	96		%	0
Noninterest-bearing deposits to total deposits	23			23			0
Stockholders' equity to total assets	8.62			8.60			2
Tier 1 leverage capital ratio	9.07			8.99			8
Common equity tier 1 capital ratio	10.83			10.93			(10)
Tier 1 risk-based capital ratio	10.83			10.93			(10)
Total risk-based capital ratio	13.17			13.31			(14)



	Three Months Ended March 31,
	2025 vs 2024
	Increases (Decreases) Due to Change in
($ in thousands)	Volume		Rate		Total
Interest-earning assets:
Interest-bearing deposits in other banks	$	211	$	(257)	$	(46)
Other investments	19		250		269
AFS debt securities	192		73		265
CRE	2,342		492		2,834
SBA	588		(815)		(227)
C&I	40		(266)		(226)
Home mortgage	641		149		790
Consumer	23		(4)		19
Total loans	3,634		(444)		3,190
Total interest-earning assets	4,056		(378)		3,678
Interest-bearing liabilities:
Money market deposits and others	332		(408)		(76)
Time deposits	1,928		(1,615)		313
Total interest-bearing deposits	2,260		(2,023)		237
Borrowings	(31)		(123)		(154)
Subordinated note	245		245		490
Total interest-bearing liabilities	2,474		(1,901)		573
Net interest income	$	1,582	$	1,523	$	3,105



	March 31, 2026						December 31, 2025						Ratings as of March 31, 2026 (1)
($ in thousands)	Amortized Cost		Fair Value		Net Unrealized Loss		Amortized Cost		Fair Value		Net Unrealized Loss		AAA/AA		A
U.S. Government agencies or sponsored agency securities:
Residential mortgage-backed securities	$	33,911	$	31,286	$	(2,625)	$	35,279	$	32,694	$	(2,585)	100	%	—	%
Residential collateralized mortgage obligations	184,192		172,197		(11,995)		165,103		154,463		(10,640)		100		—
Municipal securities - tax exempt	5,929		5,523		(406)		5,913		5,628		(285)		—		100
Total AFS debt securities	$	224,032	$	209,006	$	(15,026)	$	206,295	$	192,785	$	(13,510)	97	%	3	%



	March 31, 2026
	Due in One Year or Less				Due after One Year Through Five Years				Due after Five Years Through Ten Years				Due after Ten Years
($ in thousands)	Amortized Cost		Weighted Average Yield		Amortized Cost		Weighted Average Yield		Amortized Cost		Weighted Average Yield		Amortized Cost		Weighted Average Yield
U.S. Government agencies or sponsored agency securities:
Residential mortgage-backed securities	$	14	2.23	%	$	454	2.18	%	$	19,220	1.98	%	$	14,223	2.43	%
Residential collateralized mortgage obligations	—		—		47		1.80		1,374		1.54		182,771		3.51
Municipal securities - tax exempt	—		—		—		—		—		—		5,929		5.70
Total AFS debt securities	$	14	2.23	%	$	501	2.15	%	$	20,594	1.95	%	$	202,923	3.50	%



	As of and for the Three Months Ended March 31,
	2026										2025
($ in thousands)	Beginning		Provision (Reversal)		Net (Charge-offs) Recoveries			Ending			Beginning		Provision (Reversal)		Net (Charge-offs) Recoveries		Ending
CRE	$	10,427	$	1,566	$	14		$	12,007		$	9,290	$	(280)	$	—	$	9,010
SBA—real estate	6,385		595		14			6,994			5,557		(176)		—		5,381
SBA—non- real estate	587		87		3			677			418		89		5		512
C&I	1,611		237		—			1,848			1,844		(105)		(29)		1,710
Home mortgage	8,956		(2,079)		—			6,877			7,684		1,162		(91)		8,755
Consumer	9		(6)		—			3			3		(3)		$	—	—
Total	$	27,975	$	400	$	31	31	$	28,406		$	24,796	$	687	$	(115)	$	25,368
Gross loans								$	2,234,259								$	2,043,885
Average gross loans								$	2,206,685								$	1,995,899
Net (recoveries) charge-offs to average gross loans (1)								(0.01)		%							0.02		%
Allowance for credit losses to gross loans								1.27		%							1.24		%