-

OP Bancorp Reports First Quarter 2026 Net Income of $7.2 Million, Diluted EPS of $0.48

compared with Fourth quarter 2025 net income of $7.0 million, diluted EPS of $0.47, and first quarter 2025 net income of $5.6 million, diluted EPS of $0.37
Higher revenue; improved operating efficiency

LOS ANGELES--(BUSINESS WIRE)--OP Bancorp (the “Company”) (NASDAQ: OPBK), parent company of Open Bank, today reported:

 

 

 

 

 

 

 

 

 

($ in thousands, except per share data)

 

As of and For the Quarter

 

First Quarter Highlights

 

 

1Q2026

 

 

 

4Q2025

 

 

 

1Q2025

 

 

Comparisons reflect 1Q26 vs. 4Q25

Income Statement:

 

 

 

 

 

 

 

Income Statement

Net interest income

 

$

20,523

 

 

$

20,863

 

 

$

17,418

 

 

  • Revenue continued to grow.
  • Net income increased 3%, benefiting from higher revenue and reductions in both provision and noninterest expenses.
  • Diluted EPS improved modestly by $0.01.

Noninterest income

 

 

4,032

 

 

 

3,418

 

 

 

4,816

 

 

Revenue

 

 

24,555

 

 

 

24,281

 

 

 

22,234

 

 

Provision for credit losses

 

 

412

 

 

 

463

 

 

 

736

 

 

Noninterest expense

 

 

14,233

 

 

 

14,293

 

 

 

13,814

 

 

Net income

 

$

7,234

 

 

$

7,038

 

 

$

5,560

 

 

Diluted Earnings Per Share (“EPS”)

 

$

0.48

 

 

$

0.47

 

 

$

0.37

 

 

Net interest margin (1)

 

 

3.19

%

 

 

3.25

%

 

 

3.01

%

 

Efficiency ratio (2)

 

 

57.97

 

 

 

58.87

 

 

 

62.13

 

 

Balance Sheet:

 

 

 

 

 

 

 

Balance Sheet

Average loans (3)

 

$

2,226,749

 

 

$

2,204,232

 

 

$

2,005,044

 

 

  • Average loans increased 1%.
  • Average deposits increased 2%.

Average deposits

 

 

2,300,455

 

 

 

2,264,990

 

 

 

2,083,890

 

 

Credit Quality:

 

 

 

 

 

 

 

Credit Quality

Net (recoveries) charge-offs (1) to average gross loans

 

 

(0.01

)%

 

 

(0.03

)%

 

 

0.02

%

 

  • Net charge-offs remained at a low level.
  • Allowance for credit losses to gross loans remained stable.

Allowance for credit losses on loans to gross loans

 

 

1.27

 

 

 

1.28

 

 

 

1.24

 

 

Selected Ratios:

 

 

 

 

 

 

 

Performance and Capital

Book value per share

 

$

15.62

 

 

$

15.31

 

 

$

14.09

 

 

  • Book value per share continued to rise, reflecting the Company’s growing net worth.

Return on average assets ("ROAA") (1)

 

 

1.08

%

 

 

1.07

%

 

 

0.92

%

 

  • ROAA, ROAE and stockholders’ equity to asset ratios improved, reflecting stable profitability and more efficient utilization of assets and equity.

Return on average equity ("ROAE") (1)

 

 

12.56

 

 

 

12.53

 

 

 

10.73

 

 

Stockholders' equity to asset ratio

 

 

8.62

 

 

 

8.60

 

 

 

8.36

 

 

Common equity tier 1 capital (“CET1”)

 

 

10.82

 

 

 

10.93

 

 

 

10.97

 

 

  • CET1 remained robust, reflecting a solid capital position.

 

 

 

 

 

 

 

 

 

(1)

 

Annualized.

(2)

 

Represents noninterest expense divided by the sum of net interest income and noninterest income.

(3)

 

Includes loans held-for-sale.

Sang K. Oh, President and Chief Executive Officer:

“We continued to deliver strong results that highlight the strength and resilience of our Company. Revenue grew steadily, supported by continued loan and deposit growth, along with higher noninterest income from increased gains on loan sales. Our disciplined expense management further enhanced performance, and overall credit quality remained sound and manageable with low net charge-offs. With a solid capital base, we are well-positioned for sustainable growth as we move into 2026,” said Sang K. Oh, President and Chief Executive Officer.

INCOME STATEMENT HIGHLIGHTS

Net Interest Income and Net Interest Margin

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

For the Three Months Ended

 

% Change 1Q2026 vs.

 

 

1Q2026

 

 

 

4Q2025

 

 

 

1Q2025

 

 

4Q2025

 

1Q2025

Interest Income

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

38,537

 

$

39,282

 

$

34,859

 

(2

)%

 

11

%

Interest expense

 

 

18,014

 

 

 

18,419

 

 

 

17,441

 

 

(2

)

 

3

 

Net interest income

 

$

20,523

 

 

$

20,863

 

 

$

17,418

 

 

(2

)%

 

18

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

For the Three Months Ended

 

Average

Yield/Rate

Change

1Q2026 vs.

 

1Q2026

 

4Q2025

 

1Q2025

 

 

Interest

Income/

Expense

 

Average

Yield/Rate(1)

 

Interest

Income/

Expense

 

Average

Yield/Rate(1)

 

Interest

Income/

Expense

 

Average

Yield/Rate(1)

 

4Q2025

 

1Q2025

Interest-earning Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

34,879

 

6.33

%

 

$

35,921

 

6.48

%

 

$

31,689

 

6.39

%

 

(15) bps

 

(6) bps

Total interest-earning assets

 

 

38,537

 

 

6.00

 

 

 

39,282

 

 

6.11

 

 

 

34,859

 

 

6.04

 

 

(11) bps

 

(4) bps

Interest-bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

 

16,845

 

 

3.83

 

 

 

17,324

 

 

3.97

 

 

 

16,608

 

 

4.31

 

 

(14) bps

 

(48) bps

Total interest-bearing liabilities

 

 

18,014

 

 

3.88

 

 

 

18,419

 

 

3.99

 

 

 

17,441

 

 

4.31

 

 

(11) bps

 

(43) bps

Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income / interest rate spreads

 

 

20,523

 

 

2.12

 

 

 

20,863

 

 

2.12

 

 

 

17,418

 

 

1.73

 

 

— bps

 

39 bps

Net interest margin

 

 

 

3.19

 

 

 

 

3.25

 

 

 

 

3.01

 

 

(6) bps

 

18 bps

Total deposits / cost of deposits

 

 

16,845

 

 

2.97

 

 

 

17,324

 

 

3.03

 

 

 

16,608

 

 

3.23

 

 

(6) bps

 

(26) bps

Total funding liabilities / cost of funds

 

 

18,014

 

 

3.04

 

 

 

18,419

 

 

3.09

 

 

 

17,441

 

 

3.27

 

 

(5) bps

 

(23) bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

 

Annualized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

For the Three Months Ended

 

Average Yield

Change 1Q2026 vs.

 

1Q2026

 

4Q2025

 

1Q2025

 

 

Interest

Income

 

Average

Yield(1)

 

Interest

Income

 

Average

Yield(1)

 

Interest

Income

 

Average

Yield(1)

 

4Q2025

 

1Q2025

Loan Yield Component:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contractual interest rate

 

$

34,254

 

 

6.22

%

 

$

35,010

 

 

6.31

%

 

$

31,323

 

 

6.32

%

 

(9) bps

 

(10) bps

Accretion of SBA loan discount(2)

 

 

815

 

 

0.15

 

 

 

966

 

 

0.17

 

 

 

683

 

 

0.14

 

 

(2) bps

 

1 bps

Amortization of net deferred fees

 

 

127

 

 

0.02

 

 

 

(17

)

 

(0.00

)

 

 

(106

)

 

(0.02

)

 

2 bps

 

4 bps

Amortization of premium

 

 

(312

)

 

(0.06

)

 

 

(301

)

 

(0.05

)

 

 

(329

)

 

(0.07

)

 

(1) bps

 

1 bps

Amortization of premium - Home mortgage payoffs

 

 

(186

)

 

(0.03

)

 

 

(123

)

 

(0.02

)

 

 

(162

)

 

(0.03

)

 

(1) bps

 

— bps

Net interest recognized on nonaccrual loans

 

 

(94

)

 

(0.02

)

 

 

105

 

 

0.02

 

 

 

132

 

 

0.02

 

 

(4) bps

 

(4) bps

Prepayment penalty income and other fees(3)

 

 

275

 

 

0.05

 

 

 

281

 

 

0.05

 

 

 

148

 

 

0.03

 

 

— bps

 

2 bps

Yield on loans

 

$

34,879

 

 

6.33

%

 

$

35,921

 

 

6.48

%

 

$

31,689

 

 

6.39

%

 

(15) bps

 

(6) bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

 

Annualized.

(2)

 

Includes discount accretion from SBA loan payoffs of $370 thousand, $505 thousand and $193 thousand for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively.

(3)

 

Includes prepayment penalty income of $98 thousand, $145 thousand and $67 thousand for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively, from Commercial Real Estate (“CRE”) and SBA loans.

First Quarter 2026 vs. Fourth Quarter 2025

Net interest income declined by $340 thousand, or 2%, primarily due to lower loan yields and two fewer accrual days, partially offset by balance-sheet growth and a special dividend on FHLB stock. As a result, the net interest margin contracted by 6 basis point to 3.19%.

  • Loans: Interest income decreased by $1.0 million, driven largely by a 15-basis-point decline in loan yields and two fewer accrual days, partially offset by a $22.5 million increase in average loan balances. The lower yield reflects the downward repricing of adjustable-rate loans and reduced rates on new originations following last year’s federal funds rate cuts. In addition, higher interest income reversals related to loans moving to nonaccrual status compared to the prior quarter further contributed to the decline in loan yields.
  • Deposits: Interest expense decreased by $479 thousand, primarily due to a 14-basis-point reduction in interest-bearing deposit costs and two fewer accrual days. This decrease was partially offset by a $51.4 million increase in average interest-bearing deposit balances.
  • Other investments: Interest income increased by $250 thousand, mainly due to a special dividend received on FHLB stock.

First Quarter 2026 vs. First Quarter 2025

Net interest income increased by $3.1 million, or 18%, driven primarily by balance-sheet growth and lower deposit rates. As a result, the net interest margin expanded by 18 basis points to 3.19%.

  • Loans: Interest income rose by $3.2 million, largely attributable to a $221.7 million increase in average loan balances, reflecting strong loan production and portfolio growth.
  • Deposits: Interest expense increased by $237 thousand, mainly due to a $221.9 million increase in average interest-bearing deposit balances. This increase was mostly offset by a 48-basis-point reduction in interest-bearing deposit costs, driven by the repricing of time deposits following the federal funds rate cuts.

Provision for Credit Losses

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

For the Three Months Ended

 

$ Change 1Q2026 vs.

 

 

1Q2026

 

 

 

4Q2025

 

 

 

1Q2025

 

 

 

4Q2025

 

 

 

1Q2025

 

Provision for credit losses on loans

 

$

400

 

$

518

 

$

687

 

$

(118

)

 

$

(287

)

Reversal of credit losses on off-balance sheet exposure

 

 

12

 

 

 

(55

)

 

 

49

 

 

 

67

 

 

 

(37

)

Provision for credit losses

 

$

412

 

 

$

463

 

 

$

736

 

 

$

(51

)

 

$

(324

)

 

 

 

 

 

 

 

 

 

 

 

First Quarter 2026 vs. Fourth Quarter 2025

Provision for credit losses on loans decreased modestly by $118 thousand, primarily reflecting lower quantitative reserves driven by changes in portfolio conditions, partially offset by higher specific reserves related to increased nonaccrual CRE loans.

First Quarter 2026 vs. First Quarter 2025

Provision for credit losses on loans decreased by $287 thousand, primarily due to lower qualitative reserves resulting from shifts in portfolio characteristics, partially offset by the higher specific reserves associated with additional nonaccrual CRE loans.

Noninterest Income

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

For the Three Months Ended

 

% Change 1Q2026 vs.

 

 

1Q2026

 

 

 

4Q2025

 

 

 

1Q2025

 

 

4Q2025

 

1Q2025

Noninterest Income

 

 

 

 

 

 

 

 

 

 

Service charges on deposits

 

$

463

 

$

462

 

$

1,000

 

0

%

 

(54

)%

Loan servicing fees, net of amortization

 

 

722

 

 

 

650

 

 

 

1,007

 

 

11

 

 

(28

)

Gains on sale of loans

 

 

2,050

 

 

 

1,573

 

 

 

2,019

 

 

30

 

 

2

 

Other income

 

 

797

 

 

 

733

 

 

 

790

 

 

9

 

 

1

 

Total noninterest income

 

$

4,032

 

 

$

3,418

 

 

$

4,816

 

 

18

%

 

(16

)%

 

 

 

 

 

 

 

 

 

 

 

First Quarter 2026 vs. Fourth Quarter 2025

Noninterest income increased by $614 thousand, or 18%, primarily driven by higher gains on sale of loans.

  • Gains on Sale of Loans: Increased by $477 thousand, driven by higher premium rates and stronger SBA loan sale activity. The Bank sold $32.2 million in SBA loans at an average premium rate of 8.27%, compared with $28.5 million sold at an average premium rate of 6.98% in the prior period.

First Quarter 2026 vs. First Quarter 2025

Noninterest income decreased by $784 thousand, or 16%, primarily due to lower service charges on deposits and reduced loan servicing fees.

  • Service Charges on Deposits: Decreased by $537 thousand, largely reflecting lower balances in existing business analysis accounts and closure of certain currency exchange-related accounts during the third quarter of 2025.
  • Loan Servicing Fees, net of amortization: Decreased by $285 thousand, mainly due to higher amortization of servicing assets, driven by elevated payoff activity within the servicing portfolio.

Noninterest Expense

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

For the Three Months Ended

 

% Change 1Q2026 vs.

 

 

1Q2026

 

 

 

4Q2025

 

 

 

1Q2025

 

 

4Q2025

 

1Q2025

Noninterest Expense

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

$

9,276

 

$

9,244

 

$

8,776

 

0

%

 

6

%

Occupancy and equipment

 

 

1,811

 

 

 

1,919

 

 

 

1,581

 

 

(6

)

 

15

 

Data processing and communication

 

 

411

 

 

 

591

 

 

 

296

 

 

(30

)

 

39

 

Professional fees

 

 

399

 

 

 

549

 

 

 

407

 

 

(27

)

 

(2

)

FDIC insurance and regulatory assessments

 

 

418

 

 

 

362

 

 

 

487

 

 

15

 

 

(14

)

Promotion and advertising

 

 

120

 

 

 

(9

)

 

 

156

 

 

NM

 

 

(23

)

Directors’ fees

 

 

144

 

 

 

148

 

 

 

180

 

 

(3

)

 

(20

)

Foundation donation and other contributions

 

 

725

 

 

 

707

 

 

 

556

 

 

3

 

 

30

 

Other expenses

 

 

929

 

 

 

782

 

 

 

1,375

 

 

19

 

 

(32

)

Total noninterest expense

 

$

14,233

 

 

$

14,293

 

 

$

13,814

 

 

0

%

 

3

%

 

 

 

 

 

 

 

 

 

 

 

NM — Not meaningful

First Quarter 2026 vs. Fourth Quarter 2025

Noninterest expense remained stable, with no meaningful change from the prior period.

First Quarter 2026 vs. First Quarter 2025

Noninterest expense increased by $419 thousand, or 3%, primarily due to higher salaries and employee benefits, and increased occupancy and equipment, partially offset by lower other expenses.

  • Salaries and Employee Benefits: Increased by $500 thousand, mainly driven by staffing growth, annual salary adjustments effective April 2025, and higher benefits costs, including health insurance. This increase was partially offset by lower incentive accruals.
  • Occupancy and equipment: Increased by $230 thousand, primarily due to the expiration of a common-area-maintenance concession on a lease that benefited the prior period.
  • Other expenses: Decreased by $446 thousand, primarily reflecting lower business development and credit-related expenses.

Income Tax Expense

First Quarter 2026 vs. Fourth Quarter 2025

Income tax expense increased by $189 thousand to $2.7 million, with the effective tax rate rising to 27.0% from 26.1%.

First Quarter 2026 vs. First Quarter 2025

Income tax expense increased by $552 thousand to $2.7 million, with the effective tax rate declining to 27.0% from 27.6%. The increase in income tax expense was primarily attributable to higher pre-tax income.

BALANCE SHEET HIGHLIGHTS

Loans

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

As of

 

% Change 1Q2026 vs.

 

 

1Q2026

 

 

 

4Q2025

 

 

 

1Q2025

 

 

4Q2025

 

1Q2025

CRE

 

$

1,173,366

 

$

1,132,223

 

$

1,023,278

 

4

%

 

15

%

SBA

 

 

284,182

 

 

 

264,523

 

 

 

258,778

 

 

7

 

 

10

 

C&I

 

 

219,367

 

 

 

221,270

 

 

 

202,250

 

 

(1

)

 

8

 

Home mortgage

 

 

556,952

 

 

 

574,300

 

 

 

559,543

 

 

(3

)

 

0

 

Consumer & other

 

 

392

 

 

 

1,353

 

 

 

36

 

 

(71

)

 

989

 

Gross loans

 

$

2,234,259

 

 

$

2,193,669

 

 

$

2,043,885

 

 

2

%

 

9

%

 

 

 

 

 

 

 

 

 

 

 

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 1Q2026 vs.

 

1Q2026

 

4Q2025

 

1Q2025

 

4Q2025

 

1Q2025

 

Amount

 

Rate

 

Amount

 

Rate

 

Amount

 

Rate

 

 

CRE

 

$

83,333

 

6.48

%

 

$

75,750

 

6.60

%

 

$

69,889

 

7.03

%

 

10

%

 

19

%

SBA

 

 

33,528

 

 

7.99

 

 

 

26,748

 

 

8.52

 

 

 

18,206

 

 

8.81

 

 

25

 

 

84

 

C&I

 

 

8,489

 

 

7.00

 

 

 

6,870

 

 

6.57

 

 

 

506

 

 

8.18

 

 

24

 

 

1578

 

Home mortgage

 

 

7,059

 

 

6.03

 

 

 

7,020

 

 

6.45

 

 

 

74,004

 

 

6.42

 

 

1

 

 

(90

)

Consumer and other

 

 

 

 

 

 

 

 

 

 

 

 

40

 

 

6.05

 

 

 

 

(100

)

Gross loans (1)

 

$

132,409

 

 

6.87

%

 

$

116,388

 

 

7.03

%

 

$

162,645

 

 

6.95

%

 

14

%

 

(19

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

 

Excludes changes in line utilization.

The following table summarizes the loan activity for the periods indicated:

 

 

 

 

 

 

 

($ in thousands)

 

For the Three Months Ended

 

 

1Q2026

 

 

 

4Q2025

 

 

 

1Q2025

 

Beginning Balance

 

$

2,193,669

 

 

$

2,151,217

 

 

$

1,956,852

 

Originations

 

 

132,409

 

 

 

116,388

 

 

 

162,645

 

Net change in line utilization

 

 

28,712

 

 

 

34,191

 

 

 

12,841

 

Purchases

 

 

 

 

 

1,014

 

 

 

12,028

 

Sales

 

 

(29,438

)

 

 

(28,549

)

 

 

(36,086

)

Payoffs & paydowns

 

 

(98,703

)

 

 

(82,365

)

 

 

(65,621

)

Other

 

 

7,610

 

 

 

1,773

 

 

 

1,226

 

Total

 

 

40,590

 

 

 

42,452

 

 

 

87,033

 

Ending balance

 

$

2,234,259

 

 

$

2,193,669

 

 

$

2,043,885

 

 

 

 

 

 

 

 

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

 

1Q2026

 

4Q2025

 

1Q2025

 

%

 

Rate

 

%

 

Rate

 

%

 

Rate

Fixed rate

 

29

%

 

5.70

%

 

31

%

 

5.65

%

 

33

%

 

5.53

%

Hybrid rate

 

40

 

 

6.00

 

 

40

 

 

5.93

 

 

37

 

 

5.71

 

Variable rate

 

31

 

 

6.86

 

 

29

 

 

7.22

 

 

30

 

 

7.86

 

Gross loans

 

100

%

 

6.18

%

 

100

%

 

6.22

%

 

100

%

 

6.29

%

 

 

 

 

 

 

 

 

 

 

 

 

 

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 March 31, 2026

 

Within One Year

 

One Year Through

Five Years

 

After Five Years

 

Total

 

Amount

 

Rate

 

Amount

 

Rate

 

Amount

 

Rate

 

Amount

 

Rate

Fixed rate

 

$

183,123

 

5.72

%

 

$

282,353

 

6.26

%

 

$

182,259

 

4.82

%

 

$

647,735

 

5.70

%

Hybrid rate

 

 

 

 

 

 

 

189,039

 

 

4.94

 

 

 

712,525

 

 

6.28

 

 

 

901,564

 

 

6.00

 

Variable rate

 

 

108,892

 

 

7.00

 

 

 

197,491

 

 

6.78

 

 

 

378,577

 

 

6.87

 

 

 

684,960

 

 

6.86

 

Gross loans

 

$

292,015

 

 

6.20

%

 

$

668,883

 

 

6.04

%

 

$

1,273,361

 

 

6.25

%

 

$

2,234,259

 

 

6.18

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 1Q2026 vs.

 

 

1Q2026

 

 

 

4Q2025

 

 

 

1Q2025

 

 

 

4Q2025

 

 

 

1Q2025

 

Allowance for credit losses on loans, beginning

 

$

27,975

 

$

27,299

 

$

24,796

 

$

676

 

$

3,179

Provision for credit losses on loans

 

 

400

 

 

 

518

 

 

 

687

 

 

 

(118

)

 

 

(287

)

Gross charge-offs

 

 

(31

)

 

 

 

 

 

(130

)

 

 

(31

)

 

 

99

 

Gross recoveries

 

 

62

 

 

 

158

 

 

 

15

 

 

 

(96

)

 

 

47

 

Net recoveries (charge-offs)

 

 

31

 

 

 

158

 

 

 

(115

)

 

 

(127

)

 

 

146

 

Allowance for credit losses on loans, ending

 

$

28,406

 

 

$

27,975

 

 

$

25,368

 

 

$

431

 

 

$

3,038

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses on off-balance sheet exposure, beginning

 

$

274

 

 

$

329

 

 

$

360

 

 

$

(55

)

 

$

(86

)

Provision for (reversal of) credit losses on off-balance sheet exposure

 

 

12

 

 

 

(55

)

 

 

49

 

 

 

67

 

 

 

(37

)

Allowance for credit losses on off-balance sheet exposure, ending

 

$

286

 

 

$

274

 

 

$

409

 

 

$

12

 

 

$

(123

)

 

 

 

 

 

 

 

 

 

 

 

Asset Quality

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

As of and For the Three Months Ended

 

% or Basis Point

Change 1Q2026 vs.

 

 

1Q2026

 

 

 

4Q2025

 

 

 

1Q2025

 

 

4Q2025

 

1Q2025

Accruing loans 30-89 days past due (1)

 

$

9,311

 

 

$

6,292

 

 

$

6,452

 

 

48

%

 

44

%

As a % of gross loans

 

 

0.42

%

 

 

0.29

%

 

 

0.32

%

 

13 bps

 

10 bps

 

 

 

 

 

 

 

 

 

 

 

Nonperforming loans (2)

 

$

18,297

 

 

$

14,071

 

 

$

10,412

 

 

30

%

 

76

%

Nonperforming assets (2)

 

 

18,297

 

 

 

14,071

 

 

 

11,649

 

 

30

 

 

57

 

Nonperforming loans to gross loans

 

 

0.82

%

 

 

0.64

%

 

 

0.51

%

 

18 bps

 

31 bps

Nonperforming assets to total assets

 

 

0.68

 

 

 

0.53

 

 

 

0.46

 

 

15 bps

 

22 bps

 

 

 

 

 

 

 

 

 

 

 

Criticized loans (3)(4)

 

$

33,235

 

 

$

32,060

 

 

$

23,055

 

 

3.7

%

 

44.2

%

Criticized loans to gross loans

 

 

1.49

%

 

 

1.46

%

 

 

1.13

%

 

3 bps

 

36 bps

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses ratios:

 

 

 

 

 

 

 

 

 

 

As a % of gross loans

 

 

1.27

%

 

 

1.28

%

 

 

1.24

%

 

(1) bps

 

3 bps

As a % of nonperforming loans

 

 

155

 

 

 

199

 

 

 

244

 

 

(44

)%

 

(89

)%

As a % of nonperforming assets

 

 

155

 

 

 

199

 

 

 

218

 

 

(44

)

 

(63

)

As a % of criticized loans

 

 

85

 

 

 

87

 

 

 

110

 

 

(2

)

 

(25

)

Net (recoveries) charge-offs (5) to average gross loans

 

 

(0.01

)

 

 

(0.03

)

 

 

0.02

 

 

2 bps

 

(3) bps

 

 

 

 

 

 

 

 

 

 

 

(1)

 

Excludes the guaranteed portion of loans totaling $947 thousand and $3.2 million as of March 31, 2026 and December 31, 2025, respectively. There were no guaranteed portion as of March 31, 2025.

(2)

 

Excludes the guaranteed portion of loans totaling $30.8 million, $20.9 million and $14.3 million as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively.

(3)

 

Excludes the guaranteed portion of loans totaling $35.9 million, $27.3 million and $17.2 million as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively.

(4)

 

Consists of special mention, substandard, doubtful and loss categories.

(5)

 

Annualized.

Credit quality remained manageable during the period. The increase in nonperforming loans was primarily driven by a single isolated relationship, while overall credit performance continued to be stable. The allowance for credit losses on loans remained adequate at 1.27% of gross loans.

  • Accruing loans 30-89 days past-due increased by $3.0 million, primarily driven by $6.8 million inflows into this category, mainly SBA loans. This increase was partially offset by $2.3 million of SBA loans moving to nonaccrual status and $1.5 million returning to the 29-days-or-less past-due category.
  • Nonperforming loans increased by $4.2 million, primarily driven by a single $4.1 million CRE relationship that migrated to nonaccrual. This loan is currently in active resolution and is expected to be fully paid off by the second quarter of 2026.
  • Criticized loans increased by $1.2 million, primarily attributable to $2.9 million in loan downgrades. This increase was partially offset by an $872 thousand SBA note sale and $589 thousand in home mortgage loan payoffs.

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

As of

 

% Change 1Q2026 vs.

 

1Q2026

 

4Q2025

 

1Q2025

 

 

Amount

 

%

 

Amount

 

%

 

Amount

 

%

 

4Q2025

 

1Q2025

Noninterest-bearing deposits

 

$

546,550

 

24

%

 

$

520,865

 

23

%

 

$

552,797

 

25

%

 

5

%

 

(1

)%

Money market deposits and others

 

 

398,756

 

 

17

 

 

 

388,066

 

 

17

 

 

 

385,080

 

 

18

 

 

3

 

 

4

 

Time deposits

 

 

1,381,988

 

 

59

 

 

 

1,371,616

 

 

60

 

 

 

1,251,994

 

 

57

 

 

1

 

 

10

 

Total deposits

 

$

2,327,294

 

 

100

%

 

$

2,280,547

 

 

100

%

 

$

2,189,871

 

 

100

%

 

2

%

 

6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Estimated uninsured deposits

 

$

1,154,625

 

 

50

%

 

$

1,093,843

 

 

48

%

 

$

1,072,753

 

 

49

%

 

6

%

 

8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of March 31, 2026 vs. December 31, 2025

Total deposits increased by $46.7 million or 2%, reflecting growth across all major deposit categories. The growth in noninterest-bearing deposits reflects both new account openings and higher balances from existing customers. The increase in money market deposits and others was primarily due to higher balances from existing customers. Time deposit growth was largely attributable to new retail customers opening accounts, partially offset by a decline in wholesale CD balances.

As of March 31, 2026 vs. March 31, 2025

Total deposits increased by $137.4 million or 6%, primarily driven by growth of $130.0 million in time deposits. The increase in time deposits was largely due to new customers opening CD accounts, reflecting a preference for higher-yielding products.

The following table sets forth the maturity of time deposits as of March 31, 2026:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of March 31, 2026

($ in thousands)

 

Within

Three

Months

 

Three to

Six

Months

 

Six to

Nine

Months

 

Nine to

Twelve

Months

 

After

Twelve

Months

 

Total

Time deposits (greater than $250)

 

$

159,075

 

 

$

286,942

 

 

$

157,995

 

 

$

138,438

 

 

$

703

 

 

$

743,153

 

Time deposits ($250 or less)

 

 

303,647

 

 

 

159,114

 

 

 

99,555

 

 

 

74,733

 

 

 

1,786

 

 

 

638,835

 

Total time deposits

 

$

462,722

 

 

$

446,056

 

 

$

257,550

 

 

$

213,171

 

 

$

2,489

 

 

$

1,381,988

 

Weighted average rate

 

 

3.99

%

 

 

3.92

%

 

 

4.01

%

 

 

3.78

%

 

 

1.86

%

 

 

3.94

%

 

 

 

 

 

 

 

 

 

 

 

 

 

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, including the Federal Reserve. The following table presents the Company's liquid assets and available borrowings as of dates presented:

 

 

 

 

 

($ in thousands)

 

 

1Q2026

 

 

 

4Q2025

 

 

 

1Q2025

 

Liquidity Assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

160,260

 

 

$

167,311

 

 

$

198,861

 

Available-for-sale ("AFS") debt securities

 

 

209,006

 

 

 

192,785

 

 

 

182,480

 

Liquid assets

 

$

369,266

 

 

$

360,096

 

 

$

381,341

 

Liquid assets to total assets

 

 

14

%

 

 

14

%

 

 

15

%

 

 

 

 

 

 

 

Available Borrowings:

 

 

 

 

 

 

Federal Home Loan Bank ("FHLB") —San Francisco

 

$

417,723

 

 

$

443,629

 

 

$

381,456

 

Federal Reserve Bank

 

 

204,140

 

 

 

208,859

 

 

 

217,563

 

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

 

$

721,863

 

 

$

752,488

 

 

$

699,019

 

Total available borrowings to total assets

 

 

27

%

 

 

28

%

 

 

28

%

 

 

 

 

 

 

 

Liquid assets and available borrowings to total deposits

 

 

47

%

 

 

49

%

 

 

49

%

 

 

 

 

 

Capital and Capital Ratios

On April 23, 2026, the Company’s Board of Directors declared a quarterly cash dividend of $0.14 per share, representing a 17% increase from the prior quarterly dividend of $0.12 per share, on its common stock. The dividend is payable on or about May 21, 2026, to shareholders of record as of the close of business on May 7, 2026. The principal source of funds from which the Company pays dividends are the dividends received from the Bank. During the first quarter of 2026, no shares were repurchased under the repurchase program approved in August 2025.

 

 

 

 

 

 

 

 

 

 

 

OP Bancorp(1)

 

Open Bank

 

Well-

Capitalized

Requirement

 

Minimum

Capital Ratio+

Conservation

Buffer(2)

Risk-Based Capital Ratios (3):

 

 

 

 

 

 

 

 

Total capital

 

13.17

%

 

13.18

%

 

10.00

%

 

10.50

%

Tier 1 capital

 

10.82

 

 

11.93

 

 

8.00

 

 

8.50

 

CET1 capital

 

10.82

 

 

11.93

 

 

6.50

 

 

7.00

 

Tier 1 leverage

 

9.07

 

 

10.00

 

 

5.00

 

 

4.00

 

 

 

 

 

 

 

 

 

 

(1)

 

The capital requirements are only applicable to the Bank. The Company's ratios are included solely 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 March 31, 2026 regulatory capital ratios and risk-weighted assets are preliminary.

 

 

 

 

 

 

 

 

 

 

 

OP Bancorp

 

 

 

 

 

 

 

% or Basis Point Change

1Q2026 vs.

 

1Q2026

 

4Q2025

 

1Q2025

 

4Q2025

 

1Q2025

Risk-Based Capital Ratios:

 

 

 

 

 

 

 

 

 

 

Total capital

 

13.17 %

(1)

13.31 %

 

12.22 %

 

(14) bps

 

95 bps

Tier 1 capital

 

10.82

(1)

10.93

 

10.97

 

(11) bps

 

(15) bps

CET1 capital

 

10.82

(1)

10.93

 

10.97

 

(11) bps

 

(15) bps

Tier 1 leverage

 

9.07

(1)

8.99

 

9.22

 

8 bps

 

(15) bps

Risk-weighted Assets ($ in thousands)

 

$ 2,245,233

(1)

$ 2,174,801

 

$ 2,034,969

 

3 %

 

10 %

 

 

 

 

 

 

 

 

 

 

 

(1)

 

The Company’s March 31, 2026 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 operates 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, serving small- and medium-sized businesses, professionals, and local residents with a particular focus on Korean and other Asian 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 I, Item 1A, of our Annual Report on Form 10-K for the period ended December 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.

CONSOLIDATED BALANCE SHEETS (unaudited)

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

As of

 

% Change

1Q2026 vs.

 

 

1Q2026

 

 

 

4Q2025

 

 

 

1Q2025

 

 

4Q2025

 

1Q2025

Assets

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

12,842

 

 

$

10,911

 

 

$

12,575

 

 

18

%

 

2

%

Interest-bearing deposits with banks

 

 

147,418

 

 

 

156,400

 

 

 

186,286

 

 

(6

)

 

(21

)

Cash and cash equivalents

 

 

160,260

 

 

 

167,311

 

 

 

198,861

 

 

(4

)

 

(19

)

AFS debt securities, at fair value

 

 

209,006

 

 

 

192,785

 

 

 

182,480

 

 

8

 

 

15

 

Other investments

 

 

17,213

 

 

 

17,208

 

 

 

16,517

 

 

0

 

 

4

 

Loans held-for-sale

 

 

9,498

 

 

 

11,443

 

 

 

4,555

 

 

(17

)

 

109

 

CRE

 

 

1,173,366

 

 

 

1,132,223

 

 

 

1,023,278

 

 

4

 

 

15

 

SBA

 

 

284,182

 

 

 

264,523

 

 

 

258,778

 

 

7

 

 

10

 

C&I

 

 

219,367

 

 

 

221,270

 

 

 

202,250

 

 

(1

)

 

8

 

Home mortgage

 

 

556,952

 

 

 

574,300

 

 

 

559,543

 

 

(3

)

 

0

 

Consumer and other

 

 

392

 

 

 

1,353

 

 

 

36

 

 

(71

)

 

NM

 

Gross loans

 

 

2,234,259

 

 

 

2,193,669

 

 

 

2,043,885

 

 

2

 

 

9

 

Allowance for credit losses on loans

 

 

(28,406

)

 

 

(27,975

)

 

 

(25,368

)

 

2

 

 

12

 

Net loans

 

 

2,205,853

 

 

 

2,165,694

 

 

 

2,018,517

 

 

2

 

 

9

 

Premises and equipment, net

 

 

5,516

 

 

 

5,744

 

 

 

6,526

 

 

(4

)

 

(15

)

Accrued interest receivable

 

 

10,683

 

 

 

10,482

 

 

 

9,871

 

 

2

 

 

8

 

Servicing assets

 

 

9,834

 

 

 

10,057

 

 

 

10,848

 

 

(2

)

 

(9

)

Company owned life insurance

 

 

23,794

 

 

 

23,616

 

 

 

23,084

 

 

1

 

 

3

 

Deferred tax assets, net

 

 

12,417

 

 

 

12,438

 

 

 

13,183

 

 

0

 

 

(6

)

Other real estate owned ("OREO")

 

 

 

 

 

 

 

 

1,237

 

 

 

 

(100

)

Operating right-of-use assets

 

 

8,253

 

 

 

8,804

 

 

 

6,930

 

 

(6

)

 

19

 

Other assets

 

 

26,300

 

 

 

24,644

 

 

 

20,362

 

 

7

 

 

29

 

Total assets

 

$

2,698,627

 

 

$

2,650,226

 

 

$

2,512,971

 

 

2

%

 

7

%

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing

 

$

546,550

 

 

$

520,865

 

 

$

552,797

 

 

5

%

 

(1

)%

Money market and others

 

 

398,756

 

 

 

388,066

 

 

 

385,080

 

 

3

 

 

4

 

Time deposits greater than $250

 

 

743,153

 

 

 

683,956

 

 

 

610,783

 

 

9

 

 

22

 

Other time deposits

 

 

638,835

 

 

 

687,660

 

 

 

641,211

 

 

(7

)

 

0

 

Total deposits

 

 

2,327,294

 

 

 

2,280,547

 

 

 

2,189,871

 

 

2

 

 

6

 

FHLB advances

 

 

75,000

 

 

 

75,000

 

 

 

75,000

 

 

 

 

 

Subordinated note

 

 

24,607

 

 

 

24,586

 

 

 

 

 

0

 

 

NM

 

Accrued interest payable

 

 

15,181

 

 

 

14,595

 

 

 

14,994

 

 

4

 

 

1

 

Operating lease liabilities

 

 

10,508

 

 

 

11,175

 

 

 

9,193

 

 

(6

)

 

14

 

Other liabilities

 

 

13,326

 

 

 

16,430

 

 

 

13,824

 

 

(19

)

 

(4

)

Total liabilities

 

 

2,465,916

 

 

 

2,422,333

 

 

 

2,302,882

 

 

2

 

 

7

 

Shareholders' equity:

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

73,018

 

 

 

73,018

 

 

 

73,697

 

 

 

 

(1

)

Additional paid-in capital

 

 

11,995

 

 

 

11,849

 

 

 

11,371

 

 

1

 

 

5

 

Retained earnings

 

 

158,730

 

 

 

153,283

 

 

 

138,563

 

 

4

 

 

15

 

Accumulated other comprehensive loss, net of tax

 

 

(11,032

)

 

 

(10,257

)

 

 

(13,542

)

 

8

 

 

(19

)

Total shareholders’ equity

 

 

232,711

 

 

 

227,893

 

 

 

210,089

 

 

2

 

 

11

 

Total liabilities and shareholders' equity

 

$

2,698,627

 

 

$

2,650,226

 

 

$

2,512,971

 

 

2

%

 

7

%

 

 

 

 

 

 

 

 

 

 

 

Shares of common stock outstanding, at period-end

 

 

14,894,239

 

 

 

14,889,540

 

 

 

14,914,261

 

 

0

%

 

0

%

Book value per share

 

$

15.62

 

 

$

15.31

 

 

$

14.09

 

 

2

%

 

11

%

Stockholders' equity to asset ratio

 

 

8.62

%

 

 

8.60

%

 

 

8.36

%

 

0

%

 

3

%

 

 

 

 

 

 

 

 

 

 

 

NM — Not meaningful

CONSOLIDATED STATEMENTS OF INCOME (unaudited)

 

 

 

 

 

 

 

 

 

 

 

($ in thousands, except share and per share data)

 

For the Three Months Ended

 

% or Basis Point Change

1Q2026 vs.

 

 

1Q2026

 

 

 

4Q2025

 

 

 

1Q2025

 

 

4Q2025

 

1Q2025

Interest income

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

34,879

 

 

$

35,921

 

 

$

31,689

 

 

(3

)%

 

10

%

Interest on AFS debt securities

 

 

1,761

 

 

 

1,680

 

 

 

1,496

 

 

5

 

 

18

 

Other interest income

 

 

1,897

 

 

 

1,681

 

 

 

1,674

 

 

13

 

 

13

 

Total interest income

 

 

38,537

 

 

 

39,282

 

 

 

34,859

 

 

(2

)

 

11

 

Interest expense

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

 

16,845

 

 

 

17,324

 

 

 

16,608

 

 

(3

)

 

1

 

Interest on borrowings

 

 

679

 

 

 

817

 

 

 

833

 

 

(17

)

 

(18

)

Interest on subordinated note

 

 

490

 

 

 

278

 

 

 

 

 

76

 

 

100

 

Total interest expense

 

 

18,014

 

 

 

18,419

 

 

 

17,441

 

 

(2

)

 

3

 

Net interest income

 

 

20,523

 

 

 

20,863

 

 

 

17,418

 

 

(2

)

 

18

 

Provision for credit losses

 

 

412

 

 

 

463

 

 

 

736

 

 

(11

)

 

(44

)

Net interest income after provision for credit losses

 

 

20,111

 

 

 

20,400

 

 

 

16,682

 

 

(1

)

 

21

 

Noninterest income

 

 

 

 

 

 

 

 

 

 

Service charges on deposits

 

 

463

 

 

 

462

 

 

 

1,000

 

 

0

 

 

(54

)

Loan servicing fees, net of amortization

 

 

722

 

 

 

650

 

 

 

1,007

 

 

11

 

 

(28

)

Gains on sale of loans

 

 

2,050

 

 

 

1,573

 

 

 

2,019

 

 

30

 

 

2

 

Other income

 

 

797

 

 

 

733

 

 

 

790

 

 

9

 

 

1

 

Total noninterest income

 

 

4,032

 

 

 

3,418

 

 

 

4,816

 

 

18

 

 

(16

)

Noninterest expense

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

9,276

 

 

 

9,244

 

 

 

8,776

 

 

0

 

 

6

 

Occupancy and equipment

 

 

1,811

 

 

 

1,919

 

 

 

1,581

 

 

(6

)

 

15

 

Data processing and communication

 

 

411

 

 

 

591

 

 

 

296

 

 

(30

)

 

39

 

Professional fees

 

 

399

 

 

 

549

 

 

 

407

 

 

(27

)

 

(2

)

FDIC insurance and regulatory assessments

 

 

418

 

 

 

362

 

 

 

487

 

 

15

 

 

(14

)

Promotion and advertising

 

 

120

 

 

 

(9

)

 

 

156

 

 

NM

 

 

(23

)

Directors’ fees

 

 

144

 

 

 

148

 

 

 

180

 

 

(3

)

 

(20

)

Foundation donation and other contributions

 

 

725

 

 

 

707

 

 

 

556

 

 

3

 

 

30

 

Other expenses

 

 

929

 

 

 

782

 

 

 

1,375

 

 

19

 

 

(32

)

Total noninterest expense

 

 

14,233

 

 

 

14,293

 

 

 

13,814

 

 

0

 

 

3

 

Income before income tax expense

 

 

9,910

 

 

 

9,525

 

 

 

7,684

 

 

4

 

 

29

 

Income tax expense

 

 

2,676

 

 

 

2,487

 

 

 

2,124

 

 

8

 

 

26

 

Net income

 

$

7,234

 

 

$

7,038

 

 

$

5,560

 

 

3

%

 

30

%

 

 

 

 

 

 

 

 

 

 

 

EPS - basic

 

 

0.49

 

 

 

0.47

 

 

 

0.37

 

 

2 bps

 

12 bps

EPS - diluted

 

 

0.48

 

 

 

0.47

 

 

 

0.37

 

 

1 bps

 

11 bps

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares:

 

 

 

 

 

 

 

 

 

 

- Basic

 

 

14,890,929

 

 

 

14,886,681

 

 

 

14,857,234

 

 

0

%

 

0

%

- Diluted

 

 

14,930,173

 

 

 

14,915,677

 

 

 

14,857,234

 

 

0

 

 

0

 

 

 

 

 

 

 

 

 

 

 

 

ROAA (1)

 

 

1.08

%

 

 

1.07

%

 

 

0.92

%

 

1 bps

 

16 bps

ROAE (1)

 

 

12.56

 

 

 

12.53

 

 

 

10.73

 

 

3 bps

 

183 bps

Efficiency ratio (2)

 

 

57.97

 

 

 

58.87

 

 

 

62.13

 

 

(90) bps

 

(416) bps

 

 

 

 

 

 

 

 

 

 

 

NM — Not meaningful

(1)

 

Annualized.

(2)

 

Represents noninterest expense divided by the sum of net interest income and noninterest income

 

ASSET QUALITY

 

 

 

 

 

 

 

($ in thousands)

 

As of and For the Three Months Ended

 

 

1Q2026

 

 

 

4Q2025

 

 

 

1Q2025

 

Nonaccrual loans (1)(2)

 

$

18,297

 

 

$

14,071

 

 

$

10,412

 

Loans 90 days or more past due, accruing

 

 

 

 

 

 

 

 

 

Nonperforming loans

 

 

18,297

 

 

 

14,071

 

 

 

10,412

 

OREO

 

 

 

 

 

 

 

 

1,237

 

Nonperforming assets

 

$

18,297

 

 

$

14,071

 

 

$

11,649

 

 

 

 

 

 

 

 

Criticized loans (3) by risk categories:

 

 

 

 

 

 

Special mention loans

 

$

10,141

 

 

$

10,885

 

 

$

7,190

 

Classified loans (4)

 

 

23,094

 

 

 

21,175

 

 

 

15,865

 

Total criticized loans

 

$

33,235

 

 

$

32,060

 

 

$

23,055

 

 

 

 

 

 

 

 

Nonperforming loans to gross loans

 

 

0.82

%

 

 

0.64

%

 

 

0.51

%

Nonperforming assets to gross loans & OREO

 

 

0.82

 

 

 

0.64

 

 

 

0.57

 

Nonperforming assets to total assets

 

 

0.68

 

 

 

0.53

 

 

 

0.46

 

Classified loans to gross loans

 

 

1.03

 

 

 

0.97

 

 

 

0.78

 

Criticized loans to gross loans

 

 

1.49

 

 

 

1.46

 

 

 

1.13

 

 

 

 

 

 

 

 

Allowance for credit losses ratios:

 

 

 

 

 

 

As a % of gross loans

 

 

1.27

%

 

 

1.28

%

 

 

1.24

%

As a % of nonperforming loans

 

 

155

 

 

 

199

 

 

 

244

 

As a % of nonperforming assets

 

 

155

 

 

 

199

 

 

 

218

 

As a % of classified loans

 

 

123

 

 

 

132

 

 

 

160

 

As a % of criticized loans

 

 

85

 

 

 

87

 

 

 

110

 

 

 

 

 

 

 

 

Net (recoveries) charge-offs

 

$

(31

)

 

$

(158

)

 

$

115

 

Net (recoveries) charge-offs (5) to average gross loans

 

 

(0.01

)%

 

 

(0.03

)%

 

 

0.02

%

 

 

 

 

 

 

 

(1)

 

Excludes loans held-for-sale.

(2)

 

Excludes the guaranteed portion of loans totaling $30.8 million, $20.9 million and $14.3 million as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively.

(3)

 

Excludes the guaranteed portion of loans totaling $35.9 million, $27.3 million and $17.2 million as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively.

(4)

 

Consists of substandard, doubtful and loss categories.

(5)

 

Annualized.

 

 

 

 

 

 

 

 

($ in thousands)

 

 

1Q2026

 

 

 

4Q2025

 

 

 

1Q2025

 

Accruing delinquent loans 30-89 days past due by loan type (1) :

 

 

 

 

 

 

CRE

 

$

 

$

 

$

SBA

 

 

5,374

 

 

 

2,562

 

 

 

2,483

 

C&I

 

 

9

 

 

 

 

 

 

 

Home mortgage

 

 

3,911

 

 

 

557

 

 

 

3,969

 

Total 30-59 days

 

 

9,294

 

 

 

3,119

 

 

 

6,452

 

 

 

 

 

 

 

 

CRE

 

 

 

 

 

 

 

 

 

SBA

 

 

 

 

 

1,168

 

 

 

 

C&I

 

 

17

 

 

 

 

 

 

 

Home mortgage

 

 

 

 

 

2,005

 

 

 

 

Total 60-89 days

 

 

17

 

 

 

3,173

 

 

 

 

 

 

 

 

 

 

 

CRE

 

 

 

 

 

 

 

 

 

SBA

 

 

5,374

 

 

 

3,730

 

 

 

2,483

 

C&I

 

 

26

 

 

 

 

 

 

 

Home mortgage

 

 

3,911

 

 

 

2,562

 

 

 

3,969

 

Total accruing delinquent loans 30-89 days past due

 

$

9,311

 

 

$

6,292

 

 

$

6,452

 

 

 

 

 

 

 

 

Nonaccrual loans (2) by loan type:

 

 

 

 

 

 

CRE

 

$

7,307

 

 

$

3,424

 

 

$

1,937

 

SBA

 

 

10,597

 

 

 

9,840

 

 

 

6,371

 

C&I

 

 

393

 

 

 

218

 

 

 

 

Home mortgage

 

 

 

 

 

589

 

 

 

2,104

 

Total nonaccrual

 

$

18,297

 

 

$

14,071

 

 

$

10,412

 

 

 

 

 

 

 

 

Criticized loans(3) by loan type:

 

 

 

 

 

 

CRE

 

$

10,057

 

 

$

10,364

 

 

$

8,988

 

SBA

 

 

20,016

 

 

 

18,218

 

 

 

11,574

 

C&I

 

 

1,620

 

 

 

1,338

 

 

 

389

 

Home mortgage

 

 

1,542

 

 

 

2,140

 

 

 

2,104

 

Total criticized

 

$

33,235

 

 

$

32,060

 

 

$

23,055

 

 

 

 

 

 

 

 

(1)

 

Excludes the guaranteed portion of loans totaling $947 thousand and $3.2 million as of March 31, 2026 and December 31, 2025, respectively. There was no guaranteed portion as of March 31, 2025.

(2)

 

Excludes the guaranteed portion of loans that were in liquidation totaling $30.8 million, $20.9 million and $14.3 million as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively.

(3)

 

Excludes the guaranteed portion of loans that were in liquidation totaling $35.9 million, $27.3 million and $17.2 million as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively.

 

AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

1Q2026

 

4Q2025

 

1Q2025

($ in thousands)

 

Average

Balance

 

Interest

Income/

Expense

 

Average

Yield/Rate(1)

 

Average

Balance

 

Interest

Income/

Expense

 

Average

Yield/Rate(1)

 

Average

Balance

 

Interest

Income/

Expense

 

Average

Yield/Rate(1)

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits in other banks

 

$

145,013

 

$

1,326

 

3.66

%

 

$

135,883

 

$

1,360

 

3.92

%

 

$

124,069

 

$

1,372

 

4.42

%

Other investments

 

 

17,232

 

 

 

571

 

 

13.24

 

 

 

17,186

 

 

 

321

 

 

7.46

 

 

 

16,469

 

 

 

302

 

 

7.33

 

AFS debt securities, at fair value

 

 

205,247

 

 

 

1,761

 

 

3.43

 

 

 

198,335

 

 

 

1,680

 

 

3.39

 

 

 

184,649

 

 

 

1,496

 

 

3.24

 

CRE

 

 

1,154,515

 

 

 

17,814

 

 

6.26

 

 

 

1,119,031

 

 

 

17,616

 

 

6.25

 

 

 

1,000,426

 

 

 

14,980

 

 

6.07

 

SBA

 

 

292,821

 

 

 

5,980

 

 

8.28

 

 

 

282,501

 

 

 

6,557

 

 

9.21

 

 

 

265,953

 

 

 

6,207

 

 

9.47

 

C&I

 

 

212,941

 

 

 

3,552

 

 

6.77

 

 

 

220,274

 

 

 

3,846

 

 

6.93

 

 

 

212,106

 

 

 

3,778

 

 

7.22

 

Home mortgage

 

 

565,185

 

 

 

7,508

 

 

5.31

 

 

 

581,824

 

 

 

7,889

 

 

5.42

 

 

 

526,326

 

 

 

6,718

 

 

5.11

 

Consumer and other

 

 

1,287

 

 

 

25

 

 

7.99

 

 

 

602

 

 

 

13

 

 

8.75

 

 

 

233

 

 

 

6

 

 

9.75

 

Loans (2)

 

 

2,226,749

 

 

 

34,879

 

 

6.33

 

 

 

2,204,232

 

 

 

35,921

 

 

6.48

 

 

 

2,005,044

 

 

 

31,689

 

 

6.39

 

Total interest-earning assets

 

 

2,594,241

 

 

 

38,537

 

 

6.00

 

 

 

2,555,636

 

 

 

39,282

 

 

6.11

 

 

 

2,330,231

 

 

 

34,859

 

 

6.04

 

Noninterest-earning assets

 

 

76,830

 

 

 

 

 

 

 

79,743

 

 

 

 

 

 

 

77,823

 

 

 

 

 

Total assets

 

$

2,671,071

 

 

 

 

 

 

$

2,635,379

 

 

 

 

 

 

$

2,408,054

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market deposits and others

 

$

393,242

 

 

$

3,009

 

 

3.10

%

 

$

389,958

 

 

$

3,241

 

 

3.30

%

 

$

353,804

 

 

$

3,085

 

 

3.54

%

Time deposits

 

 

1,390,491

 

 

 

13,836

 

 

4.04

 

 

 

1,342,337

 

 

 

14,083

 

 

4.16

 

 

 

1,208,032

 

 

 

13,523

 

 

4.54

 

Total interest-bearing deposits

 

 

1,783,733

 

 

 

16,845

 

 

3.83

 

 

 

1,732,295

 

 

 

17,324

 

 

3.97

 

 

 

1,561,836

 

 

 

16,608

 

 

4.31

 

Borrowings

 

 

75,834

 

 

 

679

 

 

3.63

 

 

 

86,905

 

 

 

817

 

 

3.73

 

 

 

78,944

 

 

 

833

 

 

4.28

 

Subordinated note

 

 

24,600

 

 

 

490

 

 

7.97

 

 

 

13,896

 

 

 

278

 

 

7.99

 

 

 

 

 

 

 

 

 

Total interest-bearing liabilities

 

 

1,884,167

 

 

 

18,014

 

 

3.88

 

 

 

1,833,096

 

 

 

18,419

 

 

3.99

 

 

 

1,640,780

 

 

 

17,441

 

 

4.31

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

516,722

 

 

 

 

 

 

 

532,695

 

 

 

 

 

 

 

522,054

 

 

 

 

 

Other noninterest-bearing liabilities

 

 

39,756

 

 

 

 

 

 

 

44,985

 

 

 

 

 

 

 

38,014

 

 

 

 

 

Total noninterest-bearing liabilities

 

 

556,478

 

 

 

 

 

 

 

577,680

 

 

 

 

 

 

 

560,068

 

 

 

 

 

Shareholders’ equity

 

 

230,426

 

 

 

 

 

 

 

224,603

 

 

 

 

 

 

 

207,206

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

2,671,071

 

 

 

 

 

 

$

2,635,379

 

 

 

 

 

 

$

2,408,054

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income / interest rate spreads

 

 

 

$

20,523

 

 

2.12

%

 

 

 

$

20,863

 

 

2.12

%

 

 

 

$

17,418

 

 

1.73

%

Net interest margin

 

 

 

 

 

3.19

%

 

 

 

 

 

3.25

%

 

 

 

 

 

3.01

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of deposits & cost of funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total deposits / cost of deposits

 

$

2,300,455

 

 

$

16,845

 

 

2.97

%

 

$

2,264,990

 

 

$

17,324

 

 

3.03

%

 

$

2,083,890

 

 

$

16,608

 

 

3.23

%

Total funding liabilities / cost of funds

 

 

2,400,889

 

 

 

18,014

 

 

3.04

 

 

 

2,365,791

 

 

 

18,419

 

 

3.09

 

 

 

2,162,834

 

 

 

17,441

 

 

3.27

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

 

Annualized.

(2)

 

Includes loans held-for-sale.

 

Contacts

Investor Relations
OP Bancorp
Jaehyun Park
EVP & CFO
213.593.4865
jaehyun.park@myopenbank.com

OP Bancorp

NASDAQ:OPBK

Release Versions

Contacts

Investor Relations
OP Bancorp
Jaehyun Park
EVP & CFO
213.593.4865
jaehyun.park@myopenbank.com

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