8-K
OP Bancorp (OPBK)
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________
FORM 8-K
____________________________________
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 24, 2025
____________________________________
OP BANCORP
(Exact name of registrant as specified in its charter)
____________________________________
| California | 001-38437 | 81-3114676 |
|---|---|---|
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
| 1000 Wilshire Blvd, Suite 500, Los Angeles, CA | 90017 | |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: (213) 892-9999
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (See General Instruction A.2 below):
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, No Par Value | OPBK | NASDAQ Global Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐
Item 2.02 Results of Operations and Financial Condition
On July 24, 2025, OP Bancorp, (the “Company”), the holding company of Open Bank, issued its press release announcing preliminary unaudited financial results for the second quarter ended June 30, 2025. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference in this Item 2.02.
The information in this Current Report set forth under this Item 2.02, including exhibit 99.1 hereto, shall not be treated as “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (“Exchange Act”), nor shall it be deemed incorporated by reference into any registration statement or other filing pursuant to the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as expressly stated by specific reference in such filing.
Item 7.01 Regulation FD
On July 24, 2025, the registrant disclosed a presentation containing certain summary financial information that may be used in discussions with investors and analysts. That presentation is furnished herewith as Exhibit 99.3. The presentation shall not be treated as “filed” for purposes of Section 18 of the Exchange Act, nor shall it be deemed incorporated by reference into any registration statement or other filing pursuant to the Exchange Act or the Securities Act, except as expressly set forth in any such filing.
Item 8.01. Other Events
On July 24, 2025, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.12 per share on its common stock, payable on August 21, 2025, to shareholders of record as of August 7, 2025. The Company issued a press release describing the dividend on July 24, 2025, which is attached hereto as Exhibit 99.2 and incorporated herein by reference.
The information set forth in this Item 8.01, including the information in the accompanying press release, shall not be treated as “filed” for purposes of Section 18 of the Exchange Act, nor shall it be deemed incorporated by reference into any registration statement or other filing pursuant to the Exchange Act or the Securities Act, except as expressly set forth in any such filing.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits.
| Exhibit Number | Exhibit Description |
|---|---|
| 99.1 | Press Release, dated July 24, 2025 - Second Quarter 2025 Results |
| 99.2 | Press Release, dated July 24, 2025 - Dividend Declaration |
| 99.3 | Earnings Presentation - Second Quarter 2025 Results |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| OP Bancorp | ||
|---|---|---|
| Date: July 24, 2025 | By: | /s/ Jaehyun Park |
| Jaehyun Park | ||
| Executive Vice President and | ||
| Chief Financial Officer |
3
Document
Exhibit 99.1
OP BANCORP REPORTS NET INCOME FOR SECOND QUARTER 2025
OF $6.3 MILLION AND DILUTED EARNINGS PER SHARE OF $0.42
Second Quarter 2025 Highlights compared with First Quarter 2025:
•Financial Results:
◦Net income of $6.3 million, compared to $5.6 million
◦Diluted earnings per share (“EPS”) of $0.42, compared to $0.37
◦Net interest income of $19.7 million, compared to $17.4 million
◦Net interest margin of 3.23%, compared to 3.01%
◦Provision for credit losses of $1.2 million, compared to $736 thousand
◦Total assets of $2.56 billion, compared to $2.51 billion
◦Gross loans of $2.07 billion, compared to $2.04 billion
◦Total deposits of $2.25 billion, compared to $2.19 billion
•Credit Quality:
◦Allowance for credit losses on loans to gross loans of 1.27%, compared to 1.24%
◦Net charge-offs (1) to average gross loans of 0.06%, compared to 0.02%
◦Loans past due 30-89 days to gross loans of 0.47%, compared to 0.32%
◦Nonperforming loans to gross loans of 0.43%, compared to 0.51%
◦Criticized loans (2) to gross loans of 1.15%, compared to 1.13%
•Capital Levels:
◦Remained well-capitalized with a Common Equity Tier 1 (“CET1”) ratio of 11.01%
◦Book value per share increased to $14.36, compared to $14.09
◦Paid quarterly cash dividend of $0.12 per share for the periods
___________________________________________________________
(1)Annualized.
(2)Includes special mention, substandard, doubtful, and loss categories.
LOS ANGELES, July 24, 2025 — OP Bancorp (the “Company”) (NASDAQ: OPBK), the holding company of Open Bank (the “Bank”), today reported its financial results for the second quarter of 2025. The Company reported net income of $6.3 million, or $0.42 diluted EPS, compared with $5.6 million, or $0.37 diluted EPS, for the first quarter of 2025, and $5.4 million, or $0.36 per diluted EPS, for the second quarter of 2024.
Sang K. Oh, President and Chief Executive Officer:
“I am honored to step into the role of Chief Executive Officer. As we look ahead, my priorities will be to strengthen our core banking operations, deepen customer engagement, and uphold the highest standards of trust and compliance. I am committed to delivering long-term value for our shareholders, supporting our customer’s financial goals, empowering our talented teams, and fostering a culture of integrity across the Company,” said Sang K. Oh, President and Chief Executive Officer.
Mr. Oh continued, “This was a solid quarter for OP Bancorp as we continued to execute on our clearly defined path to enhanced profitability. Our results were highlighted by sustained growth in loan and deposit portfolios, an expanded net interest margin, a more favorable deposit mix and an improved efficiency, all while continuing to maintain strong credit quality and capital position. We are also proud to announce the opening of our new full-service branch in Garden Grove, California, further expanding our footprint and enhancing accessibility for our customers in the region,” said Sang K. Oh, President and Chief Executive Officer.”
SELECTED FINANCIAL HIGHLIGHTS
| ( in thousands, except per share data) | As of and For the Quarter | % or Basis Point Change 2Q2025 vs. | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1Q2025 | 2Q2024 | 1Q2025 | 2Q2024 | ||||||||||||||
| Selected Income Statement Data: | |||||||||||||||||
| Net interest income | $ | 19,721 | $ | 17,418 | $ | 16,194 | 13 | % | 22 | % | |||||||
| Provision for credit losses | 1,206 | 736 | 617 | 64 | 95 | ||||||||||||
| Noninterest income | 3,968 | 4,816 | 4,184 | (18) | (5) | ||||||||||||
| Noninterest expense | 14,037 | 13,814 | 12,189 | 2 | 15 | ||||||||||||
| Income tax expense | 2,113 | 2,124 | 2,136 | (1) | (1) | ||||||||||||
| Net income | 6,333 | 5,560 | 5,436 | 14 | 17 | ||||||||||||
| Diluted EPS | 0.42 | 0.37 | 0.36 | 14 | 17 | ||||||||||||
| Selected Balance Sheet Data: | |||||||||||||||||
| Gross loans | $ | 2,071,580 | $ | 2,043,885 | $ | 1,870,106 | 1 | % | 11 | % | |||||||
| Total deposits | 2,254,728 | 2,189,871 | 1,940,821 | 3 | 16 | ||||||||||||
| Total assets | 2,563,595 | 2,512,971 | 2,290,680 | 2 | 12 | ||||||||||||
| Average loans (1) | 2,095,168 | 2,005,044 | 1,843,284 | 4 | 14 | ||||||||||||
| Average deposits | 2,223,575 | 2,083,890 | 1,970,320 | 7 | 13 | ||||||||||||
| Credit Quality: | |||||||||||||||||
| Nonperforming loans | $ | 8,916 | $ | 10,412 | $ | 4,389 | (14) | % | 103 | % | |||||||
| Nonperforming loans to gross loans | 0.43 | % | 0.51 | % | 0.23 | % | (8) bps | 20 bps | |||||||||
| Criticized loans (2) to gross loans | 1.15 | 1.13 | 0.88 | 2 bps | 27 bps | ||||||||||||
| Net (charge-offs) recoveries (3) to average gross loans | (0.06) | (0.02) | 0.00 | (4) bps | (6) bps | ||||||||||||
| Allowance for credit losses on loans to gross loans | 1.27 | 1.24 | 1.22 | 3 bps | 5 bps | ||||||||||||
| Allowance for credit losses on loans to nonperforming loans | 295 | 244 | 519 | 51 | % | (224) | % | ||||||||||
| Financial Ratios: | |||||||||||||||||
| Return on average assets ("ROA") (3) | 1.00 | % | 0.92 | % | 0.95 | % | 8 bps | 5 bps | |||||||||
| Return on average equity ("ROE") (3) | 11.97 | 10.73 | 11.23 | 124 bps | 74 bps | ||||||||||||
| Net interest margin (3) | 3.23 | 3.01 | 2.96 | 22 bps | 27 bps | ||||||||||||
| Efficiency ratio (4) | 59.25 | 62.13 | 59.81 | (288) bps | (56) bps | ||||||||||||
| CET1 capital | 11.01 | 10.97 | 12.01 | 4 bps | (100) bps | ||||||||||||
| Tier 1 leverage capital | 8.96 | 9.22 | 9.28 | (26) bps | (32) bps | ||||||||||||
| Book value per common share | $ | 14.36 | $ | 14.09 | $ | 13.23 | 2 | % | 9 | % |
All values are in US Dollars.
(1)Includes loans held-for-sale.
(2)Includes special mention, substandard, doubtful, and loss categories.
(3)Annualized.
(4)Represents noninterest expense divided by the sum of net interest income and noninterest income.
INCOME STATEMENT HIGHLIGHTS
Net Interest Income and Net Interest Margin
| ( in thousands) | For the Three Months Ended | % Change 2Q2025 vs. | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1Q2025 | 2Q2024 | 1Q2025 | 2Q2024 | |||||||||||
| Interest Income | ||||||||||||||
| Interest income | $ | 37,665 | $ | 34,859 | $ | 34,357 | 8 | % | 10 | % | ||||
| Interest expense | 17,944 | 17,441 | 18,163 | 3 | (1) | |||||||||
| Net interest income | $ | 19,721 | $ | 17,418 | $ | 16,194 | 13 | % | 22 | % |
All values are in US Dollars.
| ( in thousands) | For the Three Months Ended | Average Yield/Rate Change 2Q2025 vs. | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1Q2025 | 2Q2024 | ||||||||||||||||||||
| Average Yield/Rate(1) | Interest Income/Expense | Average Yield/Rate(1) | Interest Income/Expense | Average Yield/Rate(1) | 1Q2025 | 2Q2024 | |||||||||||||||
| Interest-earning Assets: | |||||||||||||||||||||
| Loans | $ | 34,263 | 6.56 | % | $ | 31,689 | 6.39 | % | $ | 30,605 | 6.67 | % | 17 bps | (11) bps | |||||||
| Total interest-earning assets | 37,665 | 6.18 | 34,859 | 6.04 | 34,357 | 6.29 | 14 bps | (11) bps | |||||||||||||
| Interest-bearing Liabilities: | |||||||||||||||||||||
| Interest-bearing deposits | 17,475 | 4.18 | 16,608 | 4.31 | 17,343 | 4.84 | (13) bps | (66) bps | |||||||||||||
| Total interest-bearing liabilities | 17,944 | 4.18 | 17,441 | 4.31 | 18,163 | 4.81 | (13) bps | (63) bps | |||||||||||||
| Ratios: | |||||||||||||||||||||
| Net interest income / interest rate spreads | 19,721 | 2.00 | 17,418 | 1.73 | 16,194 | 1.48 | 27 bps | 52 bps | |||||||||||||
| Net interest margin | 3.23 | 3.01 | 2.96 | 22 bps | 27 bps | ||||||||||||||||
| Total deposits / cost of deposits | 17,475 | 3.15 | 16,608 | 3.23 | 17,343 | 3.54 | (8) bps | (39) bps | |||||||||||||
| Total funding liabilities / cost of funds | 17,944 | 3.17 | 17,441 | 3.27 | 18,163 | 3.57 | (10) bps | (40) bps |
All values are in US Dollars.
(1)Annualized.
| ( in thousands) | For the Three Months Ended | Average Yield Change 2Q2025 vs. | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1Q2025 | 2Q2024 | ||||||||||||||||||||
| Average Yield(1) | Interest Income | Average Yield(1) | Interest Income | Average Yield(1) | 1Q2025 | 2Q2024 | |||||||||||||||
| Loan Yield Component: | |||||||||||||||||||||
| Contractual interest rate | $ | 33,405 | 6.39 | % | $ | 31,240 | 6.30 | % | $ | 29,719 | 6.48 | % | 9 bps | (9) bps | |||||||
| Accretion of SBA loan discount(2) | 785 | 0.15 | 683 | 0.14 | 1,087 | 0.24 | 1 bps | (9) bps | |||||||||||||
| Amortization of net deferred fees | (42) | (0.01) | (106) | (0.02) | (44) | (0.01) | 1 bps | 0 bps | |||||||||||||
| Amortization of premium | (392) | (0.07) | (490) | (0.10) | (396) | (0.09) | 3 bps | 2 bps | |||||||||||||
| Net interest recognized on nonaccrual loans | (36) | (0.01) | 43 | 0.01 | (3) | (0.00 | ) | (2) bps | (1) bps | ||||||||||||
| Prepayment penalty income and other fees(3) | 543 | 0.11 | 319 | 0.06 | 242 | 0.05 | 5 bps | 6 bps | |||||||||||||
| Yield on loans | $ | 34,263 | 6.56 | % | $ | 31,689 | 6.39 | % | $ | 30,605 | 6.67 | % | 17 bps | (11) bps |
All values are in US Dollars.
(1)Annualized.
(2)Includes discount accretion from SBA loan payoffs of $293 thousand, $193 thousand and $564 thousand for the three months ended June 30, 2025, March 31, 2025 and June 30, 2024, respectively.
(3)Includes prepayment penalty income of $148 thousand, $67 thousand and $26 thousand for the three months ended June 30, 2025, March 31, 2025 and June 30, 2024, respectively, from Commercial Real Estate (“CRE”) loans.
Second Quarter 2025 vs. First Quarter 2025
Net interest income increased $2.3 million, or 13%, primarily due to loan growth, higher loan yields and lower deposit costs, partially offset by deposit growth. Net interest margin increased 22 basis points to 3.23% from 3.01%.
◦Interest income on loans increased $2.6 million, primarily driven by a $90.1 million increase in average loan balances and a 17 basis point improvement in loan yields, reflecting higher new loans rates compared to the prior quarter. The increase in loan yields also benefited from higher prepayment penalties and other related income, and lower amortization of premiums.
◦Interest expense on deposits increased $867 thousand, primarily due to a $114.2 million increase in average interest-bearing deposit balances, partially offset by a 13 basis point decline in interest-bearing deposit costs, reflecting the repricing of time deposits in response to the downward shift in federal funds rate that begun in the latter part of 2024.
Second Quarter 2025 vs. Second Quarter 2024
Net interest income increased $3.5 million, or 22%, primarily due to loan growth. Net interest margin increased 27 basis points to 3.23% from 2.96%.
◦Interest income on loans increased $3.7 million, primarily driven by a $251.9 million increase in average loan balances, partially offset by an 11 basis point decline in loan yields. The decline in loan yields was attributable to new loan originations at lower rates following the recent decrease in the federal funds rate.
◦Interest expense on deposits remained relatively unchanged, as the impact of a $234.9 million increase in average interest-bearing deposit balances was offset by a 66 basis point decline in interest-bearing deposit costs. The decline in deposit costs was primarily due to the repricing of deposit products in response to the recent decrease in federal funds rate.
Provision for Credit Losses
| ( in thousands) | For the Three Months Ended | Change 2Q2025 vs. | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1Q2025 | 2Q2024 | 1Q2025 | 2Q2024 | ||||||||||
| Provision for credit losses on loans | $ | 1,255 | $ | 687 | $ | 627 | $ | 628 | |||||
| Provision for (reversal of) credit losses on off-balance sheet exposure | (49) | 49 | (10) | (98) | (39) | ||||||||
| Provision for credit losses | $ | 1,206 | $ | 736 | $ | 617 | $ | 589 |
All values are in US Dollars.
Second Quarter 2025 vs. First Quarter 2025
Provision for credit losses on loans increased $568 thousand, primarily due to higher historical loss factors from risk rating downgrades within the CRE portfolio and net charge-offs recognized during the quarter, partially offset by an improved qualitative outlook.
Second Quarter 2025 vs. Second Quarter 2024
Provision for credit losses on loans increased $628 thousand, primarily due to higher historical loss factors from risk rating downgrades and net charge-offs recognized during the quarter, partially offset by an improved qualitative outlook.
Noninterest Income
| ( in thousands) | For the Three Months Ended | % Change 2Q2025 vs. | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1Q2025 | 2Q2024 | 1Q2025 | 2Q2024 | |||||||||||
| Noninterest Income | ||||||||||||||
| Service charges on deposits | $ | 1,017 | $ | 1,000 | $ | 793 | 2 | % | 28 | % | ||||
| Loan servicing fees, net of amortization | 900 | 1,007 | 575 | (11) | 57 | |||||||||
| Gains on sale of loans | 1,441 | 2,019 | 2,325 | (29) | (38) | |||||||||
| Other income | 610 | 790 | 491 | (23) | 24 | |||||||||
| Total noninterest income | $ | 3,968 | $ | 4,816 | $ | 4,184 | (18) | % | (5) | % |
All values are in US Dollars.
Second Quarter 2025 vs. First Quarter 2025
Noninterest income decreased $848 thousand, or 18%, primarily due to lower gains on sale of loans, other income and loan servicing fees.
◦Gains on sale of loans declined $578 thousand, primarily due to reduced SBA loan sale activity and lower average premium rates. During the quarter, the Bank sold $25.3 million in SBA loans at an average premium rate of 7.05%, compared to the sale of $31.1 million at an average premium rate of 8.08%.
◦Other income decreased $180 thousand, primarily due to a reduction in credit-related fees collected.
◦Loan servicing fees, net of amortization, decreased $107 thousand, primarily due to increased amortization of servicing assets, driven by elevated payoff activities in servicing portfolio.
Second Quarter 2025 vs. Second Quarter 2024
Noninterest income decreased $216 thousand, or 5%, primarily due to lower gains on sale of loans, partially offset by higher loan servicing fees and service charges on deposits.
◦Gain on sale of loans declined $884 thousand, primarily due to reduced SBA loan sale activity and lower average premium rates. The Bank sold $25.3 million in SBA loans at an average premium rate of 7.05%, compared to the sale of $32.1 million at an average premium rate of 8.58%.
◦Loan servicing fees, net of amortization, increased $325 thousand, primarily due to reduced amortization expense of servicing assets, resulting from decreased loan payoff activities.
◦Service charges on deposits increased $224 thousand, primarily driven by higher deposit analysis fees, reflecting continued growth in the number of business customer accounts.
Noninterest Expense
| ( in thousands) | For the Three Months Ended | % Change 2Q2025 vs. | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1Q2025 | 2Q2024 | 1Q2025 | 2Q2024 | |||||||||||
| Noninterest Expense | ||||||||||||||
| Salaries and employee benefits | $ | 9,075 | $ | 8,776 | $ | 7,568 | 3 | % | 20 | % | ||||
| Occupancy and equipment | 1,584 | 1,581 | 1,660 | 0 | (5) | |||||||||
| Data processing and communication | 306 | 296 | 530 | 3 | (42) | |||||||||
| Professional fees | 418 | 407 | 406 | 3 | 3 | |||||||||
| FDIC insurance and regulatory assessments | 506 | 487 | 378 | 4 | 34 | |||||||||
| Promotion and advertising | 232 | 156 | 151 | 49 | 54 | |||||||||
| Directors’ fees | 198 | 180 | 178 | 10 | 11 | |||||||||
| Foundation donation and other contributions | 636 | 556 | 539 | 14 | 18 | |||||||||
| Other expenses | 1,082 | 1,375 | 779 | (21) | 39 | |||||||||
| Total noninterest expense | $ | 14,037 | $ | 13,814 | $ | 12,189 | 2 | % | 15 | % |
All values are in US Dollars.
Second Quarter 2025 vs. First Quarter 2025
Noninterest expense increased $223 thousand, or 2%, primarily due to higher salaries and employee benefits, foundation donation and other contributions, and promotion and advertising, partially offset by a reduction in other expenses.
◦Salaries and employee benefits increased $299 thousand, primarily due to higher incentive accruals and merit-based salary adjustments, partially offset by lower vacation and payroll tax accruals. Higher health insurance costs and lower loan origination costs also contributed to the increase in employee benefits.
◦Foundation donation and other contributions increased $80 thousand, primarily due to higher donation accruals for the Open Stewardship Foundation, reflecting increased net income.
◦Promotion and advertising increased $76 thousand, primarily due to a one-time accrual adjustment recorded during the second quarter of 2025.
◦Other expenses decreased $293 thousand, primarily reflecting a return to normal credit-related expense level following an abnormally high amount in the prior quarter.
Second Quarter 2025 vs. Second Quarter 2024
Noninterest expense increased $1.8 million, or 15%, primarily due to higher salaries and employee benefits, and other expenses, as well as increased FDIC insurance and regulatory assessments, partially offset by a reduction in data processing and communication.
◦Salaries and employee benefits increased $1.5 million, primarily due to higher incentive accruals as well as staffing growth and annual merit-based salary adjustments.
◦Other expenses increased $303 thousand, primarily due to higher credit-related and business development expenses.
◦FDIC insurance and regulatory assessments increased $128 thousand, primarily due to higher FDIC assessment charges. The increase was largely driven by growth in the Bank’s total assets, which expanded the assessment base, along with higher assessment rates.
◦Data processing and communication decreased $224 thousand, primarily due to contractual credits received following the conversion to a new core banking system in the fourth quarter of 2024.
Income Tax Expense
Second Quarter 2025 vs. First Quarter 2025
Income tax expense was $2.1 million for both periods. The effective tax rate decreased to 25.02% from 27.64%. The decrease in effective tax rate was primarily attributable to the revaluation of deferred tax assets resulting from recent California state tax legislation. Additional contributing factors included changes in estimates related to the adoption of an enhanced interim state tax apportionment methodology and increased tax losses from a new investment in low-income housing partnerships.
Second Quarter 2025 vs. Second Quarter 2024
Income tax expense was $2.1 million for both periods. The effective tax rate decreased to 25.02% from 28.21%. The decrease in effective tax rate was primarily attributable to the revaluation of deferred tax assets resulting from recent California state tax legislation. Additional contributing factors included changes in estimates related to the adoption of an enhanced interim state tax apportionment methodology and higher discrete benefits associated with stock-based compensation.
BALANCE SHEET HIGHLIGHTS
Loans
| ( in thousands) | As of | % Change 2Q2025 vs. | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1Q2025 | 2Q2024 | 1Q2025 | 2Q2024 | |||||||||||
| CRE loans | $ | 1,021,431 | $ | 1,023,278 | $ | 931,284 | 0 | % | 10 | % | ||||
| SBA loans | 263,424 | 258,778 | 242,395 | 2 | 9 | |||||||||
| C&I loans | 193,359 | 202,250 | 188,557 | (4) | 3 | |||||||||
| Home mortgage loans | 593,256 | 559,543 | 506,873 | 6 | 17 | |||||||||
| Consumer & other loans | 110 | 36 | 997 | 206 | (89) | |||||||||
| Gross loans | $ | 2,071,580 | $ | 2,043,885 | $ | 1,870,106 | 1 | % | 11 | % |
All values are in US Dollars.
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 2Q2025 vs. | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1Q2025 | 2Q2024 | 1Q2025 | 2Q2024 | ||||||||||||||||||||
| Rate | Amount | Rate | Amount | Rate | |||||||||||||||||||
| CRE loans | $ | 39,734 | 7.00 | % | $ | 69,889 | 7.03 | % | $ | 48,284 | 7.49 | % | (43) | % | (18) | % | |||||||
| SBA loans | 33,811 | 8.64 | 18,206 | 8.81 | 13,570 | 9.80 | 86 | 149 | |||||||||||||||
| C&I loans | 3,136 | 7.72 | 506 | 8.18 | 5,961 | 8.05 | 520 | (47) | |||||||||||||||
| Home mortgage loans | 54,837 | 6.64 | 74,004 | 6.42 | 13,539 | 7.33 | (26) | 305 | |||||||||||||||
| Consumer & other loans | — | — | 40 | 6.05 | — | — | (100) | — | |||||||||||||||
| Gross loans (1) | $ | 131,518 | 7.29 | % | $ | 162,645 | 6.95 | % | $ | 81,354 | 7.89 | % | (19) | % | 62 | % |
All values are in US Dollars.
(1)Excludes changes in line utilization.
The following table summarizes the loan activity for the periods indicated:
| ( in thousands) | For the Three Months Ended | |||||||
|---|---|---|---|---|---|---|---|---|
| 1Q2025 | 2Q2024 | |||||||
| Beginning Balance | $ | 2,043,885 | $ | 1,956,852 | $ | 1,804,987 | ||
| Originations | 131,518 | 162,645 | 81,354 | |||||
| Net change in line utilization | 27,287 | 12,841 | 57,698 | |||||
| Purchases | 1,750 | 12,028 | 5,559 | |||||
| Sales | (26,734) | (36,086) | (32,102) | |||||
| Payoffs & paydowns | (90,923) | (65,572) | (56,612) | |||||
| Decrease (increase) in loans held for sale | (15,461) | 26 | 9,590 | |||||
| Other | 258 | 1,151 | (368) | |||||
| Total | 27,695 | 87,033 | 65,119 | |||||
| Ending balance | $ | 2,071,580 | $ | 2,043,885 | $ | 1,870,106 |
All values are in US Dollars.
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 | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1Q2025 | 2Q2024 | ||||||||||||||||
| Rate | % | Rate | % | Rate | |||||||||||||
| Fixed rate | 30.8 | % | 5.54 | % | 32.8 | % | 5.55 | % | 36.2 | % | 5.39 | % | |||||
| Hybrid rate | 39.9 | 5.81 | 37.4 | 5.71 | 33.9 | 5.42 | |||||||||||
| Variable rate | 29.3 | 8.16 | 29.8 | 8.20 | 29.9 | 9.19 | |||||||||||
| Gross loans | 100.0 | % | 6.42 | % | 100.0 | % | 6.40 | % | 100.0 | % | 6.54 | % |
All values are in US Dollars.
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 June 30, 2025 | ||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| One Year Through Five Years | After Five Years | Total | |||||||||||||||||||||
| Rate | Amount | Rate | Amount | Rate | Amount | Rate | |||||||||||||||||
| Fixed rate | $ | 164,959 | 5.51 | % | $ | 276,925 | 5.92 | % | $ | 195,603 | 5.04 | % | $ | 637,487 | 5.54 | % | |||||||
| Hybrid rate | — | — | 212,624 | 4.58 | 614,965 | 6.23 | 827,589 | 5.81 | |||||||||||||||
| Variable rate | 83,691 | 7.87 | 143,054 | 7.80 | 379,759 | 8.37 | 606,504 | 8.16 | |||||||||||||||
| Gross loans | $ | 248,650 | 6.30 | % | $ | 632,603 | 5.89 | % | $ | 1,190,327 | 6.72 | % | $ | 2,071,580 | 6.42 | % |
All values are in US Dollars.
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 2Q2025 vs. | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1Q2025 | 2Q2024 | 1Q2025 | 2Q2024 | ||||||||||
| Allowance for credit losses on loans, beginning | $ | 25,368 | $ | 24,796 | $ | 22,129 | $ | 3,239 | |||||
| Provision for credit losses on loans | 1,255 | 687 | 627 | 568 | 628 | ||||||||
| Gross charge-offs | (542) | (130) | — | (412) | (542) | ||||||||
| Gross recoveries | 205 | 15 | 4 | 190 | 201 | ||||||||
| Net (charge-offs) recoveries | (337) | (115) | 4 | (222) | (341) | ||||||||
| Allowance for credit losses on loans, ending | $ | 26,286 | $ | 25,368 | $ | 22,760 | $ | 3,526 | |||||
| Allowance for credit losses on off-balance sheet exposure, beginning | $ | 409 | $ | 360 | $ | 468 | $ | (59) | |||||
| Provision for (reversal of) credit losses on off-balance sheet exposure | (49) | 49 | (10) | (98) | (39) | ||||||||
| Allowance for credit losses on off-balance sheet exposure, ending | $ | 360 | $ | 409 | $ | 458 | $ | (98) |
All values are in US Dollars.
Asset Quality
| ( in thousands) | As of and For the Three Months Ended | % or Basis Point Change 2Q2025 vs. | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1Q2025 | 2Q2024 | 1Q2025 | 2Q2024 | ||||||||||||||
| Accruing loans 30-89 days past due | $ | 9,804 | $ | 6,452 | $ | 6,652 | 52 | % | 47 | % | |||||||
| As a % of gross loans | 0.47 | % | 0.32 | % | 0.36 | % | 15 bps | 11 bps | |||||||||
| Nonperforming loans (1) | $ | 8,916 | $ | 10,412 | $ | 4,389 | (14) | % | 103 | % | |||||||
| Nonperforming assets (1) | 10,153 | 11,649 | 5,626 | (13) | 80 | ||||||||||||
| Nonperforming loans to gross loans | 0.43 | % | 0.51 | % | 0.23 | % | (8) bps | 20 bps | |||||||||
| Nonperforming assets to total assets | 0.40 | 0.46 | 0.25 | (6) bps | 15 bps | ||||||||||||
| Criticized loans (2)(3) | $ | 23,758 | $ | 23,055 | $ | 16,428 | 3.0 | % | 44.6 | % | |||||||
| Criticized loans to gross loans | 1.15 | % | 1.13 | % | 0.88 | % | 2 bps | 27 bps | |||||||||
| Allowance for credit losses ratios: | |||||||||||||||||
| As a % of gross loans | 1.27 | % | 1.24 | % | 1.22 | % | 3 bps | 5 bps | |||||||||
| As a % of nonperforming loans | 295 | 244 | 519 | 51 | % | (224) | % | ||||||||||
| As a % of nonperforming assets | 259 | 218 | 405 | 41 | (146) | ||||||||||||
| As a % of criticized loans | 111 | 110 | 139 | 1 | (28) | ||||||||||||
| Net (charge-offs) recoveries (4) to average gross loans | (0.06) | (0.02) | 0.00 | (4) bps | (6) bps |
All values are in US Dollars.
(1)Excludes the guaranteed portion of loans that were in liquidation totaling $13.9 million, $14.3 million and $3.5 million as of June 30, 2025, March 31, 2025 and June 30, 2024, respectively.
(2)Excludes the guaranteed portion of loans that were in liquidation totaling $17.1 million, $17.2 million and $3.5 million as of June 30, 2025, March 31, 2025 and June 30, 2024, respectively.
(3)Consists of special mention, substandard, doubtful and loss categories.
(4)Annualized.
Credit quality remained strong, with nonperforming loans declining to 0.43% of gross loans and annualized net charge-offs at a low 0.06%. The allowance remained adequate at 1.27% of gross loans.
◦Accruing loans 30-89 days past due increased to $9.8 million or 0.47% of gross loans, compared with $6.5 million or 0.32% in the prior quarter.
◦Nonperforming loans decreased $1.5 million, primarily attributable to increased payoffs across various loan categories, partially offset by the addition of a new nonaccrual home mortgage loan.
◦Criticized loans increased $703 thousand, primarily attributable to the downgrade of SBA and home mortgage loans, partially offset by the payoffs of certain home mortgage loans and partial charge-offs.
Deposits
| ( in thousands) | As of | % Change 2Q2025 vs. | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1Q2025 | 2Q2024 | ||||||||||||||||||||||
| % | Amount | % | Amount | % | 1Q2025 | 2Q2024 | |||||||||||||||||
| Noninterest-bearing deposits | $ | 565,683 | 25.1 | % | $ | 552,797 | 25.2 | % | $ | 518,456 | 26.7 | % | 2 | % | 9 | % | |||||||
| Money market deposits and others | 431,252 | 19.1 | 385,080 | 17.6 | 332,137 | 17.1 | 12 | 30 | |||||||||||||||
| Time deposits | 1,257,793 | 55.8 | 1,251,994 | 57.2 | 1,090,228 | 56.2 | 0 | 15 | |||||||||||||||
| Total deposits | $ | 2,254,728 | 100.0 | % | $ | 2,189,871 | 100.0 | % | $ | 1,940,821 | 100.0 | % | 3 | % | 16 | % | |||||||
| Estimated uninsured deposits | $ | 1,156,311 | 51 | % | $ | 1,072,753 | 49 | % | $ | 860,419 | 44 | % | 8 | % | 34 | % |
All values are in US Dollars.
As of June 30, 2025 vs. March 31, 2025
Total deposits increased $64.9 million or 3%, primarily driven by a $46.2 million increase in money market deposits and others, along with a $12.9 million increase in noninterest-bearing deposits. This growth reflects our continued strategic focus on expanding lower-cost deposit products, resulting in growth in both noninterest-bearing and money market deposit balances.
As of June 30, 2025 vs. June 30, 2024
Total deposits increased $313.9 million or 16%, primarily driven by growth of $167.6 million in time deposits, $99.1 million in money market deposits and others, and $47.2 million in noninterest-bearing deposits. This strong deposit growth reflects the continued strategic focus on developing and deepening deposit relationships with both new and existing customers.
The following table sets forth the maturity of time deposits as of June 30, 2025:
| As of June 30, 2025 | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ in thousands) | Within Three<br>Months | Three to<br>Six Months | Six to Nine Months | Nine to Twelve<br>Months | After<br>Twelve Months | Total | ||||||||||||
| Time deposits (greater than $250) | $ | 235,531 | $ | 146,560 | $ | 154,074 | $ | 107,185 | $ | — | $ | 643,350 | ||||||
| Time deposits ($250 or less) | 257,458 | 150,671 | 121,833 | 82,293 | 2,188 | 614,443 | ||||||||||||
| Total time deposits | $ | 492,989 | $ | 297,231 | $ | 275,907 | $ | 189,478 | $ | 2,188 | $ | 1,257,793 | ||||||
| Weighted average rate | 4.48 | % | 4.27 | % | 4.25 | % | 4.27 | % | 3.22 | % | 4.34 | % |
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) | 2Q2025 | 1Q2025 | 2Q2024 | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Liquidity Assets: | |||||||||
| Cash and cash equivalents | $ | 205,388 | $ | 198,861 | $ | 127,676 | |||
| Available-for-sale debt securities | 175,000 | 182,480 | 199,205 | ||||||
| Liquid assets | $ | 380,388 | $ | 381,341 | $ | 326,881 | |||
| Liquid assets to total assets | 15 | % | 15 | % | 14 | % | |||
| Available Borrowings: | |||||||||
| Federal Home Loan Bank ("FHLB") —San Francisco | $ | 443,207 | $ | 381,456 | $ | 343,600 | |||
| Federal Reserve Bank | 223,373 | 217,563 | 191,421 | ||||||
| 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 | $ | 766,580 | $ | 699,019 | $ | 635,021 | |||
| Total available borrowings to total assets | 30 | % | 28 | % | 28 | % | |||
| Liquid assets and available borrowings to total deposits | 51 | % | 49 | % | 50 | % |
Capital and Capital Ratios
On July 24, 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 August 21, 2025, to shareholders of record as of the close of business on August 7, 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. During the second quarter of 2025, the Company repurchased 65,387 shares of its common stock at an average price of $10.77 per share under the Company’s previously announced share repurchase program.
| OP Bancorp(1) | Open Bank | Well-<br>Capitalized<br>Requirement | Minimum<br><br>Capital Ratio+<br><br>Conservation<br><br>Buffer(2) | |||||
|---|---|---|---|---|---|---|---|---|
| Risk-Based Capital Ratios (3): | ||||||||
| Total capital | 12.26 | % | 12.15 | % | 10.00 | % | 10.50 | % |
| Tier 1 capital | 11.01 | 10.90 | 8.00 | 8.50 | ||||
| CET1 capital | 11.01 | 10.90 | 6.50 | 7.00 | ||||
| Tier 1 leverage | 8.96 | 8.87 | 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 June 30, 2025 regulatory capital ratios and risk-weighted assets are preliminary.
| OP Bancorp | % or Basis Point Change 2Q2025 vs. | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1Q2025 | 2Q2024 | 1Q2025 | 2Q2024 | |||||||||||||||
| Risk-Based Capital Ratios: | ||||||||||||||||||
| Total capital | 12.26 | % | (1) | 12.22 | % | 13.26 | % | 4 bps | (100) bps | |||||||||
| Tier 1 capital | 11.01 | (1) | 10.97 | 12.01 | 4 bps | (100) bps | ||||||||||||
| CET1 capital | 11.01 | (1) | 10.97 | 12.01 | 4 bps | (100) bps | ||||||||||||
| Tier 1 leverage | 8.96 | (1) | 9.22 | 9.28 | (26) bps | (32) bps | ||||||||||||
| Risk-weighted Assets ( in thousands) | $ | 2,062,986 | (1) | $ | 2,034,969 | $ | 1,776,821 | 1 | % | 16 | % |
All values are in US Dollars.
(1)The Company’s June 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 March 31, 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.
Contact
Investor Relations
OP Bancorp
Jaehyun Park
EVP & CFO
213.593.4865
jaehyun.park@myopenbank.com
CONSOLIDATED BALANCE SHEETS (unaudited)
| ( in thousands) | As of | % Change 2Q2025 vs. | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1Q2025 | 2Q2024 | 1Q2025 | 2Q2024 | |||||||||||
| Assets | ||||||||||||||
| Cash and due from banks | $ | 16,592 | $ | 12,575 | $ | 21,771 | 32 | % | (24) | % | ||||
| Interest-bearing deposits with banks | 188,796 | 186,286 | 105,905 | 1 | 78 | |||||||||
| Cash and cash equivalents | 205,388 | 198,861 | 127,676 | 3 | 61 | |||||||||
| Available-for-sale debt securities, at fair value | 175,000 | 182,480 | 199,205 | (4) | (12) | |||||||||
| Other investments | 17,101 | 16,517 | 16,367 | 4 | 4 | |||||||||
| Loans held-for-sale | 20,016 | 4,555 | 6,485 | 339 | 209 | |||||||||
| CRE loans | 1,021,431 | 1,023,278 | 931,284 | 0 | 10 | |||||||||
| SBA loans | 263,424 | 258,778 | 242,395 | 2 | 9 | |||||||||
| C&I loans | 193,359 | 202,250 | 188,557 | (4) | 3 | |||||||||
| Home mortgage loans | 593,256 | 559,543 | 506,873 | 6 | 17 | |||||||||
| Consumer loans | 110 | 36 | 997 | 206 | (89) | |||||||||
| Gross loans | 2,071,580 | 2,043,885 | 1,870,106 | 1 | 11 | |||||||||
| Allowance for credit losses on loans | (26,286) | (25,368) | (22,760) | 4 | 15 | |||||||||
| Net loans | 2,045,294 | 2,018,517 | 1,847,346 | 1 | 11 | |||||||||
| Premises and equipment, net | 6,852 | 6,526 | 4,716 | 5 | 45 | |||||||||
| Accrued interest receivable | 9,991 | 9,871 | 8,555 | 1 | 17 | |||||||||
| Servicing assets | 10,572 | 10,848 | 11,043 | (3) | (4) | |||||||||
| Company owned life insurance | 23,259 | 23,084 | 22,566 | 1 | 3 | |||||||||
| Deferred tax assets, net | 12,633 | 13,183 | 14,117 | (4) | (11) | |||||||||
| Other real estate owned ("OREO") | 1,237 | 1,237 | 1,237 | — | — | |||||||||
| Operating right-of-use assets | 9,887 | 6,930 | 8,348 | 43 | 18 | |||||||||
| Other assets | 26,365 | 20,362 | 23,019 | 29 | 15 | |||||||||
| Total assets | $ | 2,563,595 | $ | 2,512,971 | $ | 2,290,680 | 2 | % | 12 | % | ||||
| Liabilities and Shareholders' Equity | ||||||||||||||
| Liabilities: | ||||||||||||||
| Noninterest-bearing | $ | 565,683 | $ | 552,797 | $ | 518,456 | 2 | % | 9 | % | ||||
| Money market and others | 431,252 | 385,080 | 332,137 | 12 | 30 | |||||||||
| Time deposits greater than 250 | 643,350 | 610,783 | 533,857 | 5 | 21 | |||||||||
| Other time deposits | 614,443 | 641,211 | 556,371 | (4) | 10 | |||||||||
| Total deposits | 2,254,728 | 2,189,871 | 1,940,821 | 3 | 16 | |||||||||
| FHLB advances | 50,000 | 75,000 | 115,000 | (33) | (57) | |||||||||
| Accrued interest payable | 15,720 | 14,994 | 15,504 | 5 | 1 | |||||||||
| Operating lease liabilities | 12,243 | 9,193 | 9,000 | 33 | 36 | |||||||||
| Other liabilities | 17,186 | 13,824 | 14,369 | 24 | 20 | |||||||||
| Total liabilities | 2,349,877 | 2,302,882 | 2,094,694 | 2 | 12 | |||||||||
| Shareholders' equity: | ||||||||||||||
| Common stock | 72,984 | 73,697 | 73,749 | (1) | (1) | |||||||||
| Additional paid-in capital | 11,484 | 11,371 | 11,441 | 1 | 0 | |||||||||
| Retained earnings | 143,114 | 138,563 | 127,929 | 3 | 12 | |||||||||
| Accumulated other comprehensive loss, net of tax | (13,864) | (13,542) | (17,133) | 2 | (19) | |||||||||
| Total shareholders’ equity | 213,718 | 210,089 | 195,986 | 2 | 9 | |||||||||
| Total liabilities and shareholders' equity | $ | 2,563,595 | $ | 2,512,971 | $ | 2,290,680 | 2 | % | 12 | % |
All values are in US Dollars.
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
| ( in thousands, except share and per share data) | For the Three Months Ended | % Change 2Q2025 vs. | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1Q2025 | 2Q2024 | 1Q2025 | 2Q2024 | |||||||||||
| Interest income | ||||||||||||||
| Interest and fees on loans | $ | 34,263 | $ | 31,689 | $ | 30,605 | 8 | % | 12 | % | ||||
| Interest on available-for-sale debt securities | 1,437 | 1,496 | 1,590 | (4) | (10) | |||||||||
| Other interest income | 1,965 | 1,674 | 2,162 | 17 | (9) | |||||||||
| Total interest income | 37,665 | 34,859 | 34,357 | 8 | 10 | |||||||||
| Interest expense | ||||||||||||||
| Interest on deposits | 17,475 | 16,608 | 17,343 | 5 | 1 | |||||||||
| Interest on borrowings | 469 | 833 | 820 | (44) | (43) | |||||||||
| Total interest expense | 17,944 | 17,441 | 18,163 | 3 | (1) | |||||||||
| Net interest income | 19,721 | 17,418 | 16,194 | 13 | 22 | |||||||||
| Provision for credit losses | 1,206 | 736 | 617 | 64 | 95 | |||||||||
| Net interest income after provision for credit losses | 18,515 | 16,682 | 15,577 | 11 | 19 | |||||||||
| Noninterest income | ||||||||||||||
| Service charges on deposits | 1,017 | 1,000 | 793 | 2 | 28 | |||||||||
| Loan servicing fees, net of amortization | 900 | 1,007 | 575 | (11) | 57 | |||||||||
| Gains on sale of loans | 1,441 | 2,019 | 2,325 | (29) | (38) | |||||||||
| Other income | 610 | 790 | 491 | (23) | 24 | |||||||||
| Total noninterest income | 3,968 | 4,816 | 4,184 | (18) | (5) | |||||||||
| Noninterest expense | ||||||||||||||
| Salaries and employee benefits | 9,075 | 8,776 | 7,568 | 3 | 20 | |||||||||
| Occupancy and equipment | 1,584 | 1,581 | 1,660 | 0 | (5) | |||||||||
| Data processing and communication | 306 | 296 | 530 | 3 | (42) | |||||||||
| Professional fees | 418 | 407 | 406 | 3 | 3 | |||||||||
| FDIC insurance and regulatory assessments | 506 | 487 | 378 | 4 | 34 | |||||||||
| Promotion and advertising | 232 | 156 | 151 | 49 | 54 | |||||||||
| Directors’ fees | 198 | 180 | 178 | 10 | 11 | |||||||||
| Foundation donation and other contributions | 636 | 556 | 539 | 14 | 18 | |||||||||
| Other expenses | 1,082 | 1,375 | 779 | (21) | 39 | |||||||||
| Total noninterest expense | 14,037 | 13,814 | 12,189 | 2 | 15 | |||||||||
| Income before income tax expense | 8,446 | 7,684 | 7,572 | 10 | 12 | |||||||||
| Income tax expense | 2,113 | 2,124 | 2,136 | (1) | (1) | |||||||||
| Net income | $ | 6,333 | $ | 5,560 | $ | 5,436 | 14 | % | 17 | % | ||||
| Book value per share, at period-end | $ | 14.36 | $ | 14.09 | $ | 13.23 | 2 | % | 9 | % | ||||
| EPS - basic | 0.42 | 0.37 | 0.36 | 14 | 17 | |||||||||
| EPS - diluted | 0.42 | 0.37 | 0.36 | 14 | 17 | |||||||||
| Shares of common stock outstanding, at period-end | 14,885,614 | 14,914,261 | 14,816,281 | (0 | ) % | 0 | % | |||||||
| Weighted average shares: | ||||||||||||||
| - Basic | 14,859,718 | 14,857,234 | 14,868,344 | 0 | % | 0 | % | |||||||
| - Diluted | 14,859,718 | 14,857,234 | 14,868,344 | 0 | 0 |
All values are in US Dollars.
KEY RATIOS
| As of and For the Three Months Ended | Basis Point Change 2Q2025 vs. | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2Q2025 | 1Q2025 | 2Q2024 | 1Q2025 | 2Q2024 | ||||||||||
| ROA (1) | 1.00 | % | 0.92 | % | 0.95 | % | 8 bps | 5 bps | ||||||
| ROE (1) | 11.97 | 10.73 | 11.23 | 124 bps | 74 bps | |||||||||
| Net interest margin (1) | 3.23 | 3.01 | 2.96 | 22 bps | 27 bps | |||||||||
| Efficiency ratio (2) | 59.25 | 62.13 | 59.81 | (288) bps | (56) bps | |||||||||
| Total risk-based capital ratio | 12.26 | % | (3) | 12.22 | % | 13.26 | % | 4 bps | (100) bps | |||||
| Tier 1 risk-based capital ratio | 11.01 | (3) | 10.97 | 12.01 | 4 bps | (100) bps | ||||||||
| CET1 capital ratio | 11.01 | (3) | 10.97 | 12.01 | 4 bps | (100) bps | ||||||||
| Tier 1 leverage capital ratio | 8.96 | (3) | 9.22 | 9.28 | (26) bps | (32) bps |
(1)Annualized.
(2)Represents noninterest expense divided by the sum of net interest income and noninterest income.
(3)The Company’s June 30, 2025 regulatory capital ratios and risk-weighted assets are preliminary.
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
| ( in thousands, except share and per share data) | For the Six Months Ended | |||||||
|---|---|---|---|---|---|---|---|---|
| 2Q2024 | % Change | |||||||
| Interest income | ||||||||
| Interest and fees on loans | $ | 65,952 | $ | 60,747 | 9 | % | ||
| Interest on available-for-sale debt securities | 2,933 | 3,050 | (4) | |||||
| Other interest income | 3,639 | 3,473 | 5 | |||||
| Total interest income | 72,524 | 67,270 | 8 | |||||
| Interest expense | ||||||||
| Interest on deposits | 34,083 | 33,018 | 3 | |||||
| Interest on borrowings | 1,302 | 2,079 | (37) | |||||
| Total interest expense | 35,385 | 35,097 | 1 | |||||
| Net interest income | 37,139 | 32,173 | 15 | |||||
| Provision for credit losses | 1,942 | 762 | 155 | |||||
| Net interest income after provision for credit losses | 35,197 | 31,411 | 12 | |||||
| Noninterest income | ||||||||
| Service charges on deposits | 2,017 | 1,405 | 44 | % | ||||
| Loan servicing fees, net of amortization | 1,907 | 1,347 | 42 | |||||
| Gains on sale of loans | 3,460 | 4,028 | (14) | |||||
| Other income | 1,400 | 990 | 41 | |||||
| Total noninterest income | 8,784 | 7,770 | 13 | |||||
| Noninterest expense | ||||||||
| Salaries and employee benefits | 17,851 | 15,409 | 16 | |||||
| Occupancy and equipment | 3,165 | 3,315 | (5) | |||||
| Data processing and communication | 602 | 1,017 | (41) | |||||
| Professional fees | 825 | 801 | 3 | |||||
| FDIC insurance and regulatory assessments | 993 | 752 | 32 | |||||
| Promotion and advertising | 388 | 300 | 29 | |||||
| Directors’ fees | 378 | 335 | 13 | |||||
| Foundation donation and other contributions | 1,192 | 1,079 | 10 | |||||
| Other expenses | 2,457 | 1,338 | 84 | |||||
| Total noninterest expense | 27,851 | 24,346 | 14 | |||||
| Income before income tax expense | 16,130 | 14,835 | 9 | |||||
| Income tax expense | 4,237 | 4,173 | 2 | |||||
| Net income | $ | 11,893 | $ | 10,662 | 12 | % | ||
| Book value per share, at period-end | $ | 14.36 | $ | 13.23 | 9 | % | ||
| EPS - basic | 0.79 | 0.70 | 13 | |||||
| EPS - diluted | 0.79 | 0.70 | 13 | |||||
| Shares of common stock outstanding, at period-end | 14,885,614 | 14,816,281 | 0 | % | ||||
| Weighted average shares: | ||||||||
| - Basic | 14,858,483 | 14,930,090 | 0 | % | ||||
| - Diluted | 14,858,483 | 14,930,090 | 0 | % |
All values are in US Dollars.
KEY RATIOS
| As of and For the Six Months Ended | Basis Point Change 2Q2025 vs. | |||||||
|---|---|---|---|---|---|---|---|---|
| 2Q2025 | 2Q2024 | |||||||
| ROA (1) | 0.96 | % | 0.96 | % | 0 bps | |||
| ROE (1) | 11.36 | 11.03 | 33 bps | |||||
| Net interest margin | 3.12 | 3.01 | 11 bps | |||||
| Efficiency ratio (2) | 60.65 | 60.95 | (30) bps | |||||
| Total risk-based capital ratio | 12.26 | % | (3) | 13.26 | % | (100) bps | ||
| Tier 1 risk-based capital ratio | 11.01 | (3) | 12.01 | (100) bps | ||||
| CET1 capital ratio | 11.01 | (3) | 12.01 | (100) bps | ||||
| Tier 1 leverage capital ratio | 8.96 | (3) | 9.28 | (32) bps |
(1)Annualized.
(2)Represents noninterest expense divided by the sum of net interest income and noninterest income.
(3)The Company’s June 30, 2025 regulatory capital ratios and risk-weighted assets are preliminary.
ASSET QUALITY
| ( in thousands) | As of and For the Three Months Ended | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 1Q2025 | 2Q2024 | ||||||||||
| Nonaccrual loans (1)(2) | $ | 8,916 | $ | 10,412 | $ | 4,389 | |||||
| Loans 90 days or more past due, accruing | — | — | — | ||||||||
| Nonperforming loans | 8,916 | 10,412 | 4,389 | ||||||||
| OREO | 1,237 | 1,237 | 1,237 | ||||||||
| Nonperforming assets | $ | 10,153 | $ | 11,649 | $ | 5,626 | |||||
| Criticized loans (3) by risk categories: | |||||||||||
| Special mention loans | $ | 9,257 | $ | 7,190 | $ | 3,339 | |||||
| Classified loans (4) | 14,501 | 15,865 | 13,089 | ||||||||
| Total criticized loans | $ | 23,758 | $ | 23,055 | $ | 16,428 | |||||
| Nonperforming loans to gross loans | 0.43 | % | 0.51 | % | 0.23 | % | |||||
| Nonperforming assets to gross loans & OREO | 0.49 | 0.57 | 0.30 | ||||||||
| Nonperforming assets to total assets | 0.40 | 0.46 | 0.25 | ||||||||
| Classified loans to gross loans | 0.70 | 0.78 | 0.70 | ||||||||
| Criticized loans to gross loans | 1.15 | 1.13 | 0.88 | ||||||||
| Allowance for credit losses ratios: | |||||||||||
| As a % of gross loans | 1.27 | % | 1.24 | % | 1.22 | % | |||||
| As a % of nonperforming loans | 295 | 244 | 519 | ||||||||
| As a % of nonperforming assets | 259 | 218 | 405 | ||||||||
| As a % of classified loans | 181 | 160 | 174 | ||||||||
| As a % of criticized loans | 111 | 110 | 139 | ||||||||
| Net (charge-offs) recoveries | $ | (337) | $ | (115) | $ | 4 | |||||
| Net (charge-offs) recoveries (5) to average gross loans | (0.06) | % | (0.02) | % | 0.00 | % |
All values are in US Dollars.
(1)Excludes loans held-for-sale.
(2)Excludes the guaranteed portion of loans that are in liquidation totaling $13.9 million, $14.3 million and $3.5 million as of June 30, 2025, March 31, 2025 and June 30, 2024, respectively.
(3)Excludes the guaranteed portion of loans that are in liquidation totaling $17.1 million, $17.2 million and $3.5 million as of June 30, 2025, March 31, 2025 and June 30, 2024, respectively.
(4)Consists of substandard, doubtful and loss categories.
(5)Annualized.
| ($ in thousands) | 2Q2025 | 1Q2025 | 2Q2024 | |||
|---|---|---|---|---|---|---|
| Accruing delinquent loans 30-89 days past due by loan type: | ||||||
| CRE loans | $ | — | $ | — | $ | — |
| SBA loans | 4,509 | 2,483 | 1,303 | |||
| C&I loans | — | — | — | |||
| Home mortgage loans | 298 | 3,969 | 2,471 | |||
| Total 30-59 days | 4,807 | 6,452 | 3,774 | |||
| CRE loans | — | — | — | |||
| SBA loans | 1,883 | — | — | |||
| C&I loans | — | — | — | |||
| Home mortgage loans | 3,114 | — | 2,878 | |||
| Total 60-89 days | 4,997 | — | 2,878 | |||
| CRE loans | — | — | — | |||
| SBA loans | 6,392 | 2,483 | 1,303 | |||
| C&I loans | — | — | — | |||
| Home mortgage loans | 3,412 | 3,969 | 5,349 | |||
| Total accruing delinquent loans 30-89 days past due | $ | 9,804 | $ | 6,452 | $ | 6,652 |
| Nonaccrual loans (1) by loan type: | ||||||
| CRE loans | $ | 1,802 | $ | 1,937 | $ | — |
| SBA loans | 5,696 | 6,371 | 3,757 | |||
| C&I loans | — | — | 421 | |||
| Home mortgage loans | 1,418 | 2,104 | 211 | |||
| Total nonaccrual loans | $ | 8,916 | $ | 10,412 | $ | 4,389 |
| Criticized loans(2) by loan type: | ||||||
| CRE loans | $ | 8,816 | $ | 8,988 | $ | 5,896 |
| SBA loans | 12,949 | 11,574 | 9,771 | |||
| C&I loans | 575 | 389 | 550 | |||
| Home mortgage loans | 1,418 | 2,104 | 211 | |||
| Total criticized loans | $ | 23,758 | $ | 23,055 | $ | 16,428 |
(1)Excludes the guaranteed portion of loans that were in liquidation totaling $13.9 million, $14.3 million and $3.5 million as of June 30, 2025, March 31, 2025 and June 30, 2024, respectively.
(2)Excludes the guaranteed portion of loans that were in liquidation totaling $17.1 million, $17.2 million and $3.5 million as of June 30, 2025, March 31, 2025 and June 30, 2024, respectively.
AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS
| For the Three Months Ended | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2Q2025 | 1Q2025 | 2Q2024 | ||||||||||||||||
| ($ in thousands) | Average<br>Balance | Interest Income/Expense | Average Yield/Rate(1) | Average<br>Balance | Interest Income/Expense | Average Yield/Rate(1) | Average<br>Balance | Interest Income/Expense | Average Yield/Rate(1) | |||||||||
| Interest-earning assets: | ||||||||||||||||||
| Interest-bearing deposits in other banks | $ | 147,874 | $ | 1,648 | 4.41 | % | $ | 124,069 | $ | 1,372 | 4.42 | % | $ | 135,984 | $ | 1,847 | 5.37 | % |
| Other investments | 16,961 | 317 | 7.47 | 16,469 | 302 | 7.33 | 16,307 | 315 | 7.72 | |||||||||
| Available-for-sale debt securities, at fair value | 180,193 | 1,437 | 3.19 | 184,649 | 1,496 | 3.24 | 195,512 | 1,590 | 3.25 | |||||||||
| CRE loans | 1,028,961 | 16,013 | 6.24 | 1,000,426 | 14,980 | 6.07 | 910,116 | 13,742 | 6.07 | |||||||||
| SBA loans | 283,130 | 6,618 | 9.38 | 265,953 | 6,207 | 9.47 | 256,987 | 7,116 | 11.14 | |||||||||
| C&I loans | 195,547 | 3,667 | 7.52 | 212,106 | 3,778 | 7.22 | 173,100 | 3,367 | 7.82 | |||||||||
| Home mortgage loans | 587,454 | 7,962 | 5.42 | 526,326 | 6,718 | 5.11 | 501,862 | 6,348 | 5.06 | |||||||||
| Consumer loans | 76 | 3 | 15.86 | 233 | 6 | 9.75 | 1,219 | 32 | 10.44 | |||||||||
| Total loans (2) | 2,095,168 | 34,263 | 6.56 | 2,005,044 | 31,689 | 6.39 | 1,843,284 | 30,605 | 6.67 | |||||||||
| Total interest-earning assets | 2,440,196 | 37,665 | 6.18 | 2,330,231 | 34,859 | 6.04 | 2,191,087 | 34,357 | 6.29 | |||||||||
| Noninterest-earning assets | 83,394 | 77,823 | 89,446 | |||||||||||||||
| Total assets | $ | 2,523,590 | $ | 2,408,054 | $ | 2,280,533 | ||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||
| Money market deposits and others | $ | 408,667 | $ | 3,586 | 3.52 | % | $ | 353,804 | $ | 3,085 | 3.54 | % | $ | 338,554 | $ | 3,494 | 4.15 | % |
| Time deposits | 1,267,363 | 13,889 | 4.40 | 1,208,032 | 13,523 | 4.54 | 1,102,587 | 13,849 | 5.05 | |||||||||
| Total interest-bearing deposits | 1,676,030 | 17,475 | 4.18 | 1,561,836 | 16,608 | 4.31 | 1,441,141 | 17,343 | 4.84 | |||||||||
| Borrowings | 46,707 | 469 | 4.04 | 78,944 | 833 | 4.28 | 77,314 | 820 | 4.27 | |||||||||
| Total interest-bearing liabilities | 1,722,737 | 17,944 | 4.18 | 1,640,780 | 17,441 | 4.31 | 1,518,455 | 18,163 | 4.81 | |||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||
| Noninterest-bearing deposits | 547,545 | 522,054 | 529,179 | |||||||||||||||
| Other noninterest-bearing liabilities | 41,624 | 38,014 | 39,301 | |||||||||||||||
| Total noninterest-bearing liabilities | 589,169 | 560,068 | 568,480 | |||||||||||||||
| Shareholders’ equity | 211,684 | 207,206 | 193,598 | |||||||||||||||
| Total liabilities and shareholders’ equity | $ | 2,523,590 | 2,408,054 | 2,280,533 | ||||||||||||||
| Net interest income / interest rate spreads | $ | 19,721 | 2.00 | % | $ | 17,418 | 1.73 | % | $ | 16,194 | 1.48 | % | ||||||
| Net interest margin | 3.23 | % | 3.01 | % | 2.96 | % | ||||||||||||
| Cost of deposits & cost of funds: | ||||||||||||||||||
| Total deposits / cost of deposits | $ | 2,223,575 | $ | 17,475 | 3.15 | % | $ | 2,083,890 | $ | 16,608 | 3.23 | % | $ | 1,970,320 | $ | 17,343 | 3.54 | % |
| Total funding liabilities / cost of funds | 2,270,282 | 17,944 | 3.17 | 2,162,834 | 17,441 | 3.27 | 2,047,634 | 18,163 | 3.57 |
(1)Annualized.
(2)Includes loans held-for-sale.
| For the Six Months Ended | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2Q2025 | 2Q2024 | |||||||||||
| ($ in thousands) | Average<br>Balance | Interest Income/Expense | Average Yield/Rate(1) | Average<br>Balance | Interest Income/Expense | Average Yield/Rate(1) | ||||||
| Interest-earning assets: | ||||||||||||
| Interest-bearing deposits in other banks | $ | 136,038 | $ | 3,020 | 4.41 | % | $ | 104,515 | $ | 2,836 | 5.37 | % |
| Other investments | 16,716 | 619 | 7.40 | 16,286 | 637 | 7.82 | ||||||
| Available-for-sale debt securities, at fair value | 182,409 | 2,933 | 3.22 | 193,448 | 3,050 | 3.15 | ||||||
| CRE loans | 1,014,772 | 30,993 | 6.16 | 906,290 | 27,471 | 6.10 | ||||||
| SBA loans | 274,589 | 12,825 | 9.42 | 257,554 | 14,329 | 11.19 | ||||||
| C&I loans | 203,781 | 7,445 | 7.37 | 154,018 | 6,037 | 7.88 | ||||||
| Home mortgage loans | 557,058 | 14,681 | 5.27 | 506,943 | 12,843 | 5.07 | ||||||
| Consumer & other loans | 154 | 8 | 11.27 | 1,303 | 67 | 10.26 | ||||||
| Total loans (2) | 2,050,354 | 65,952 | 6.47 | 1,826,108 | 60,747 | 6.68 | ||||||
| Total interest-earning assets | 2,385,517 | 72,524 | 6.11 | 2,140,357 | 67,270 | 6.31 | ||||||
| Noninterest-earning assets | 80,624 | 88,516 | ||||||||||
| Total assets | $ | 2,466,141 | $ | 2,228,873 | ||||||||
| Interest-bearing liabilities: | ||||||||||||
| Money market deposits and others | $ | 381,387 | $ | 6,671 | 3.53 | % | $ | 352,970 | $ | 7,434 | 4.24 | % |
| Time deposits | 1,237,862 | 27,412 | 4.47 | 1,028,515 | 25,584 | 5.00 | ||||||
| Total interest-bearing deposits | 1,619,249 | 34,083 | 4.24 | 1,381,485 | 33,018 | 4.81 | ||||||
| Borrowings | 62,736 | 1,302 | 4.19 | 92,998 | 2,079 | 4.50 | ||||||
| Total interest-bearing liabilities | 1,681,985 | 35,385 | 4.24 | 1,474,483 | 35,097 | 4.79 | ||||||
| Noninterest-bearing liabilities: | ||||||||||||
| Noninterest-bearing deposits | 534,870 | 521,841 | ||||||||||
| Other noninterest-bearing liabilities | 39,829 | 39,253 | ||||||||||
| Total noninterest-bearing liabilities | 574,699 | 561,094 | ||||||||||
| Shareholders’ equity | 209,457 | 193,296 | ||||||||||
| Total liabilities and shareholders’ equity | $ | 2,466,141 | 2,228,873 | |||||||||
| Net interest income / interest rate spreads | $ | 37,139 | 1.87 | % | $ | 32,173 | 1.52 | % | ||||
| Net interest margin | 3.12 | % | 3.01 | % | ||||||||
| Cost of deposits & cost of funds: | ||||||||||||
| Total deposits / cost of deposits | $ | 2,154,119 | $ | 34,083 | 3.19 | % | 1,903,326 | $ | 33,018 | 3.49 | % | |
| Total funding liabilities / cost of funds | 2,216,855 | 35,385 | 3.22 | 1,996,324 | 35,097 | 3.54 |
(1)Annualized.
(2)Includes loans held-for-sale.
23
Document
Exhibit 99.2
OP Bancorp Declares Quarterly Cash Dividend of $0.12 per Share
LOS ANGELES, July 24, 2025 — OP Bancorp (the “Company”) (NASDAQ: OPBK), the holding company of Open Bank (the “Bank”), announced today that its Board of Directors declared a quarterly cash dividend of $0.12 per share of its common stock. The dividend is payable on or about August 21, 2025 to all shareholders of record as of the close of business on August 7, 2025.
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 with 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 Member FDIC, Equal Housing Lender.
Contact
Investor Relations
OP Bancorp
Jaehyun Park
EVP & CFO
213.593.4865
jaehyun.park@myopenbank.com
opbkearningspresentation
Second Quarter 2025 Earnings Presentation July 24, 2025
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 March 31, 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. Cautionary Note Regarding Forward-Looking Statements 2
2Q-2025 Highlights vs 1Q-2025 3 (1) Annualized. (2) Excludes the guaranteed portion of SBA loans that are in liquidation. (3) Includes special mention, substandard, doubtful, and loss categories. Net Income $6.3M Earnings & Profitability Balance Sheet Growth Credit Quality Capital Adequacy • Net income of $6.3 million, compared to $5.6 million • Diluted earnings per share of $0.42, compared to $0.37 • ROAA(1) and ROAE(1) of 1.00% and 11.97%, compared to 0.92% and 10.73%, respectively • Net interest margin of 3.23%, compared to 3.01% • Efficiency ratio of 59.25%, compared to 62.13% • Total assets of $2.56 billion, a 2% increase compared to $2.51 billion • Gross loans of $2.07 billion, an 1% increase compared to $2.04 billion • Total deposits of $2.25 billion, a 3% increase compared to $2.19 billion • Net charge-offs(1) to average gross loans of 0.06%, compared to 0.02% • Nonperforming loans(2) to gross loans of 0.43%, compared to 0.51%. • Criticized loans (2) (3) to gross loans of 1.15%, compared to 1.13% • Remained well-capitalized with a Common Equity Tier 1 (“CET1”) ratio of 11.01% • Book value per common share increased to $14.36, compared to $14.09 • Paid quarterly cash dividend of $0.12 per share for the periods Diluted EPS $0.42 ROA (1) 1.00% ROE (1) 11.97% NIM 3.23% Efficiency 59.25%
Balance Sheet Trend 4 Gross Loans ($mm)Total Assets ($mm) Total Equity ($mm) & Book Value Per Share ($)Total Deposits ($mm)
Loan Trend 5 Loan Originations* ($mm)Loan Composition ($mm) Loan Yields (%) Commercial Real Estate Concentration (%) * Excludes changes in line utilization. 48 23 35 70 40 14 10 18 34 14 13 74 55 $81 $46 $52 $163 $132 7.89% 6.94% 7.66% 6.95% 7.29% 2Q-24 3Q-24 4Q-24 1Q-25 2Q-25 CRE SBA C&I Home Mortgage Spot Rate
Loan by Interest Rate Type 6 Hybrid Loan Repricing Schedule ($mm)Composition by Interest Rate Type (%) Contractual Rates by Interest Rate Type (%) Loan Maturity Schedule ($mm) $70 $180 $155 $413 $10 4.24% 4.22% 6.02% 6.64% 7.33% <=1Y 1-2Y 2-3Y 3-5Y >5Y Hybrid repricing Contractual rate
* Based on Call Report definitions, which includes real estate loans and SBA real estate loans. Commercial Real Estate Portfolio 7 CRE* Portfolio by Property TypeCRE* Portfolio by Collateral Type
* Based on Call Report definitions, which includes real estate loans and SBA real estate loans. ** Excludes SBA loans and USDA loans. Commercial Real Estate Portfolio 8 CRE Portfolio ** by Loan-to-Value Ratio (LTV)CRE Portfolio * by Location
Home Loan Portfolio 9 Home Loan Portfolio by LTVHome Loan Portfolio by Location Home Loan Portfolio by Occupancy Type
SBA Loans 10 SBA Portfolio* by IndustrySBA Portfolio by Location
* Excludes $21.9 million in SBA C&I loans. SBA Loans 11 SBA Portfolio by Collateral TypeSBA Portfolio* by LTV
Deposit Trend 12 Noninterest Bearing Deposits ($mm)Deposit Composition ($mm) Cost of Deposits (%) CD Maturity Schedule ($mm)
Earnings & Profitability 13 Noninterest Income ($mm)Net Interest Income ($mm) & Net Interest Margin (%) * Interest Income & Interest Expense ($mm) Noninterest Income Components ($mm) * Annualized.
Earnings & Profitability 14 Efficiency Ratio (%)Noninterest Expense ($mm) Noninterest Expense Components ($mm) Efficiency Ratio Components (%) * Ratios for Efficiency Ratio Components are percentages of average assets and are annualized.
Earnings & Profitability 15 Pre-Provision Net Revenue ($mm)Provision for Loan Losses ($mm) Net Income ($mm) & Diluted EPS ($) Return on Assets & Return on Equity (%)
Source: Target Fed Funds Rate per Federal Open Market Committee guidance. Net Interest Margin Trend 16
Credit Quality 17 Criticized Loans ($mm)Nonperforming Loans ($mm) Net Charge-Offs* ($mm)Allowance for Credit Losses** ($mm) * Annualized ** Exclude the guaranteed portion of SBA loans that are in liquidation.
Liquidity & Capital 18 Total Available Liquidity* ($mm)Liquidity Assets ($mm) Tier 1 Leverage ($mm) Total Risk Based Capital ($mm) * Represent the sum of liquid assets and available borrowings.
Non-GAAP Reconciliation 19 Pre-Provision Net Revenue ($ in thousands) 2Q-25 1Q-25 4Q-24 3Q-24 2Q-24 Interest income 37,665$ 34,859$ 35,051$ 35,299$ 34,357$ Interest expense 17,944 17,441 18,122 18,794 18,163 Net interest income 19,721 17,418 16,929 16,506 16,194 Noninterest income 3,968 4,816 4,417 4,241 4,184 Noninterest expense 14,037 13,814 13,133 12,720 12,189 Pre-Provision Net Revenue (a) 9,652$ 8,420$ 8,213$ 8,026$ 8,189$ Reconciliation to Net Income: Provision for credit losses (b) 1,206 736 1,547 448 617 Provision for income taxes (c) 2,113 2,124 1,695 2,142 2,136 Net income (a) - (b) - (c) 6,333$ 5,560$ 4,971$ 5,436$ 5,436$ For the Three Months Ended Pre-provision net revenue removes provision for credit losses and income tax expense. Management believes that this non-GAAP measure, when taken together with the corresponding GAAP financial measures (as applicable), provides meaningful supplemental information regarding our performance. This non-GAAP financial measure also facilitates a comparison of our performance to prior periods.