OP Bancorp Reports First Quarter Result of 2021
OP Bancorp (NASDAQ: OPBK) reported strong unaudited financial results for Q1 2021, with net income rising to $5.1 million ($0.33 per share) from $3.8 million in Q4 2020. The bank originated 1,336 SBA PPP loans totaling $74.2 million and processed $22.9 million in loan forgiveness. Total assets grew to $1.46 billion, a 6.5% increase from Q4 2020. Noninterest income was $3.0 million, reflecting a 12.6% decrease from the previous quarter. The bank anticipates closing the purchase of an SBA loan portfolio soon, indicating positive growth prospects.
- Net income increased to $5.1 million in Q1 2021, up from $3.8 million in Q4 2020.
- Originated 1,336 SBA PPP loans totaling $74.2 million.
- Total assets increased to $1.46 billion, a 6.5% rise from Q4 2020.
- Nonperforming loans decreased to $1.1 million from $1.5 million year-over-year.
- Anticipates closing a purchase of an SBA loan portfolio, indicating future growth.
- Noninterest income decreased by 12.6% to $3 million from Q4 2020.
- Interest income from loans decreased by $410,000, or 3.0%, compared to Q1 2020.
OP Bancorp (the “Company”) (NASDAQ: OPBK), the holding company of Open Bank (the “Bank”), today reported unaudited financial results for the first quarter of 2021. Net income for the first quarter of 2021 was
“I am pleased to report a record quarter with the quarterly net income of
Financial Highlights (unaudited) |
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(Dollars in thousands, except per share data) |
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As of or for the Three Months Ended |
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March 31, |
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December 31, |
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March 31, |
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2021 |
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2020 |
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2020 |
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Income Statement Data: |
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Interest income |
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$ |
13,632 |
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$ |
13,375 |
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$ |
14,345 |
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Interest expense |
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877 |
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1,194 |
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3,229 |
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Net interest income |
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12,755 |
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12,181 |
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11,116 |
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Provision for loan losses |
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620 |
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|
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1,831 |
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|
743 |
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Noninterest income |
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2,966 |
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3,392 |
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2,296 |
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Noninterest expense |
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7,966 |
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8,412 |
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8,207 |
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Income before taxes |
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7,135 |
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5,330 |
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4,462 |
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Provision for income taxes |
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2,058 |
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1,513 |
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|
1,163 |
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Net Income |
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$ |
5,077 |
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$ |
3,817 |
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$ |
3,299 |
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Diluted earnings per share |
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$ |
0.33 |
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$ |
0.25 |
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$ |
0.21 |
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Balance Sheet Data: |
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Loans held for sale |
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$ |
28,575 |
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$ |
26,659 |
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$ |
4,382 |
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Gross loans, net of unearned income |
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1,155,872 |
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1,099,736 |
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996,559 |
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Allowance for loan losses (ALL) |
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15,339 |
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15,352 |
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10,748 |
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Total assets |
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1,455,334 |
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1,366,826 |
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1,209,593 |
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Deposits |
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1,285,390 |
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1,200,090 |
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1,052,198 |
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Shareholders’ equity |
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146,993 |
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143,366 |
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138,099 |
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Performance Ratios: |
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Return on average assets (annualized) |
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1.44 |
% |
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1.13 |
% |
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1.12 |
% |
Return on average equity (annualized) |
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14.02 |
% |
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10.72 |
% |
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9.44 |
% |
Net interest margin (annualized) |
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3.80 |
% |
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3.73 |
% |
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3.95 |
% |
Efficiency ratio (1) |
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50.67 |
% |
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54.02 |
% |
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61.19 |
% |
Credit Quality: |
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Nonperforming loans |
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$ |
1,148 |
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$ |
985 |
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$ |
1,533 |
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Nonperforming assets |
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1,148 |
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985 |
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1,533 |
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Net charge-offs to average gross loans (annualized) |
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0.00 |
% |
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0.00 |
% |
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0.02 |
% |
Nonperforming assets to gross loans plus OREO |
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0.10 |
% |
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0.09 |
% |
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0.15 |
% |
ALL to nonperforming loans |
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1,337 |
% |
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1,558 |
% |
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701 |
% |
ALL to gross loans, net of unearned income |
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1.33 |
% |
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1.40 |
% |
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1.08 |
% |
Capital Ratios: |
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Total risk-based capital ratio |
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15.04 |
% |
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14.81 |
% |
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14.78 |
% |
Tier 1 risk-based capital ratio |
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13.79 |
% |
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13.56 |
% |
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13.69 |
% |
Common equity tier 1 ratio |
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13.79 |
% |
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13.56 |
% |
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13.69 |
% |
Leverage ratio |
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10.38 |
% |
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10.55 |
% |
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11.59 |
% |
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(1) Represents noninterest expense divided by the sum of net interest income and noninterest income. |
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Pre-Provision Net Revenue |
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(Dollars in thousands) |
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For the Three Months Ended |
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March 31, |
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December 31, |
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March 31, |
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2021 |
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2020 |
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2020 |
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Interest income |
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$ |
13,632 |
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$ |
13,375 |
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$ |
14,345 |
Interest expense |
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877 |
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1,194 |
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3,229 |
Net interest income |
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12,755 |
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12,181 |
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11,116 |
Noninterest income |
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2,966 |
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3,392 |
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2,296 |
Noninterest expense |
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7,966 |
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8,402 |
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8,207 |
Pre-provision net revenue |
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$ |
7,755 |
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$ |
7,171 |
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$ |
5,205 |
Reconciliation to Net Income: |
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Provision for loan losses |
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620 |
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1,790 |
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743 |
Provision for income taxes |
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2,058 |
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1,513 |
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1,163 |
Net Income |
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$ |
5,077 |
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$ |
3,868 |
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$ |
3,299 |
Note: Pre-provision net revenue is a non-GAAP measure. Pre-provision net revenue excludes income taxes and provision for loan losses from net income. Management believes that this information provides useful information with a better comparison to the financial results of each periods and a better understanding of the operating results of the Bank. |
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Results of Operations
The reported interest income and yield on our loan portfolio are impacted by a number of components, including changes in the average contractual interest rate earned on loans and the amount of discount accretion on SBA loans. The following table reconciles both the contractual interest income and yield on our loan portfolio to the reported interest income and yield for the periods indicated.
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Three Months Ended |
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March 31, |
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December 31, |
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March 31, |
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2021 |
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2020 |
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2020 |
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(Dollars in thousands) |
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Interest & Fees |
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Yield |
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Interest & Fees |
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Yield |
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Interest & Fees |
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Yield |
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Contractual interest rate |
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$ |
12,166 |
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4.23 |
% |
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$ |
12,156 |
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4.35 |
% |
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$ |
13,088 |
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5.27 |
% |
SBA discount accretion |
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507 |
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0.18 |
% |
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619 |
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0.22 |
% |
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|
558 |
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0.22 |
% |
Amortization of net deferred fees |
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540 |
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0.19 |
% |
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242 |
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0.09 |
% |
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22 |
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0.01 |
% |
Net interest recognized on nonaccrual loans |
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(2 |
) |
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0.00 |
% |
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(20 |
) |
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-0.01 |
% |
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1 |
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0.00 |
% |
Prepayment penalties (1) and other fees |
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73 |
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0.02 |
% |
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9 |
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0.00 |
% |
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25 |
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0.01 |
% |
Yield on loans (as reported) |
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$ |
13,284 |
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4.62 |
% |
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$ |
13,006 |
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4.65 |
% |
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$ |
13,694 |
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5.51 |
% |
(1) Prepayment penalty income of |
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Net interest margin for the first quarter of 2021 increased 7 basis points to
Net interest income before provision for loan losses for the first quarter of 2021 was
Interest income on securities available for sale and other investments for the first quarter of 2021 decreased
Interest income from contractual interest rates on loans for the first quarter of 2021 increased
Interest expense for the first quarter of 2021 was
Net interest margin for the first quarter of 2021 decreased 15 basis points to
Net interest income before provision for loan losses for the first quarter of 2021 increased
Interest income on securities available for sale and other investments for the first quarter of 2021 decreased
Interest income from contractual interest rates on loans for the first quarter of 2021 decreased
Interest expense for the first quarter of 2021 decreased
The following tables show the asset yields, liability costs, net interest spread, and net interest margin for the periods indicated, along with the percentage changes in the periods indicated.
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Three Months Ended |
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Percentage Change |
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March 31, |
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December 31, |
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March 31, |
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Q1-21 |
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Q1-21 |
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2021 |
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2020 |
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2020 |
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vs. Q4-20 |
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vs. Q1-20 |
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Yield on loans |
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4.62 |
% |
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4.65 |
% |
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5.51 |
% |
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-0.03 |
% |
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-0.89 |
% |
Yield on interest-earning assets |
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|
4.07 |
% |
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|
4.10 |
% |
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|
5.10 |
% |
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|
-0.03 |
% |
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|
-1.03 |
% |
Cost of interest-bearing liabilities |
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|
0.51 |
% |
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|
0.70 |
% |
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|
1.78 |
% |
|
|
-0.19 |
% |
|
|
-1.27 |
% |
Cost of deposits |
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|
0.29 |
% |
|
|
0.40 |
% |
|
|
1.27 |
% |
|
|
-0.11 |
% |
|
|
-0.98 |
% |
Cost of funds |
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|
0.28 |
% |
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|
0.40 |
% |
|
|
1.27 |
% |
|
|
-0.12 |
% |
|
|
-0.99 |
% |
Net interest spread |
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|
3.56 |
% |
|
|
3.40 |
% |
|
|
3.32 |
% |
|
|
0.16 |
% |
|
|
0.24 |
% |
Net interest margin |
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|
3.80 |
% |
|
|
3.73 |
% |
|
|
3.95 |
% |
|
|
0.07 |
% |
|
|
-0.15 |
% |
The Bank recorded
Noninterest income for the first quarter of 2021 was
Noninterest income for the first quarter of 2021 was
Noninterest expense for the first quarter of 2021 was
Noninterest expense for the first quarter of 2021 was
Income tax provision was
Balance Sheet
Total assets were
Gross loans, net of unearned income, were
The following table shows new loan originations for the periods indicated.
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Three Month Ended |
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March 31, |
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December 31, |
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March 31, |
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2021 |
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2020 |
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2020 |
|||
Real estate loans |
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$ |
42,748 |
|
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$ |
30,828 |
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$ |
58,854 |
SBA loans (1) |
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|
105,340 |
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|
16,634 |
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|
26,347 |
C & I loans |
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|
9,505 |
|
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|
47,308 |
|
|
|
6,342 |
Home mortgage loans |
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|
11,563 |
|
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|
17,027 |
|
|
|
6,924 |
Total |
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$ |
169,156 |
|
|
$ |
111,797 |
|
|
$ |
98,467 |
(1) Includes SBA Paycheck Protection Program (PPP) loans of |
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Loan payoffs were
Total deposits were
Noninterest-bearing deposits accounted for
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As of |
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March 31, |
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December 31, |
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March 31, |
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2021 |
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2020 |
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2020 |
|
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Noninterest-bearing deposits |
|
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44.5 |
% |
|
|
43.6 |
% |
|
|
29.0 |
% |
Money market deposits and others |
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|
27.5 |
% |
|
|
27.3 |
% |
|
|
28.2 |
% |
Time deposits over |
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|
14.9 |
% |
|
|
16.7 |
% |
|
|
20.0 |
% |
Other time deposits |
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|
13.1 |
% |
|
|
12.4 |
% |
|
|
22.8 |
% |
Total deposits |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
The Bank had
The Company’s consolidated regulatory capital ratios exceeded regulatory guidelines and the Bank’s capital ratios exceeded the regulatory guidelines for a well-capitalized financial institution under the Basel III regulatory requirements at March 31, 2021, as summarized in the following table.
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Well- capitalized |
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Regulatory Capital Ratio |
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Financial |
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Requirements (1), |
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Institution |
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Including |
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Basel III |
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Fully Phased-in |
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Regulatory |
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Capital Conservation |
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Capital Ratios |
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OP Bancorp |
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Open Bank |
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Guidelines |
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Buffer |
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Total risk-based capital ratio |
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|
15.04 |
% |
|
|
14.77 |
% |
|
|
10.00 |
% |
|
|
10.50 |
% |
Tier 1 risk-based capital ratio |
|
|
13.79 |
% |
|
|
13.51 |
% |
|
|
8.00 |
% |
|
|
8.50 |
% |
Common equity tier 1 ratio |
|
|
13.79 |
% |
|
|
13.51 |
% |
|
|
6.50 |
% |
|
|
7.00 |
% |
Leverage ratio |
|
|
10.38 |
% |
|
|
10.28 |
% |
|
|
5.00 |
% |
|
|
4.00 |
% |
|
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(1) Fully phased in Basel III requirement for both OP Bancorp and Open Bank includes a |
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The Company has repurchased 3,830 shares of its common stock at an average price of
Asset Quality
Nonperforming loans were
The Bank had no other real estate owned (OREO) at March 31, 2021, December 31, 2020 and March 31, 2020.
Nonperforming assets were
Total classified loans were
The following tables shows the trend of classified loans by loan type as of the date stated.
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As of |
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March 31, |
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December 31, |
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September 30, |
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June 30, |
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March 31, |
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2021 |
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2020 |
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2020 |
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2020 |
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|
2020 |
|||||
Classified loans by loan type |
|
(Dollars in thousands) |
|||||||||||||||||
SBA loans—real estate |
|
$ |
769 |
|
|
$ |
1,523 |
|
|
$ |
774 |
|
|
$ |
786 |
|
|
$ |
2,021 |
SBA loans—non-real estate |
|
|
385 |
|
|
|
198 |
|
|
|
121 |
|
|
|
124 |
|
|
|
159 |
Commercial and industrial |
|
|
4,832 |
|
|
|
5,004 |
|
|
|
1,207 |
|
|
|
1,211 |
|
|
|
686 |
Home mortgage |
|
|
600 |
|
|
|
600 |
|
|
|
— |
|
|
|
689 |
|
|
|
694 |
Total classified loans |
|
$ |
6,586 |
|
|
$ |
7,325 |
|
|
$ |
2,102 |
|
|
$ |
2,810 |
|
|
$ |
3,560 |
SBA guarantee balance retained |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SBA loans—real estate |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
357 |
SBA loans—non-real estate |
|
|
166 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
33 |
Total SBA unsold guarantee portion |
|
$ |
166 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
390 |
Total classified loans, net of SBA guarantee balance retained |
|
$ |
6,420 |
|
|
$ |
7,325 |
|
|
$ |
2,102 |
|
|
$ |
2,810 |
|
|
$ |
3,170 |
The Bank had 14 loans in deferred status with an aggregate balance of
The allowance for loan losses (ALL) was
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, California, and Carrollton, Texas 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 nine full branch offices in Downtown Los Angeles, Los Angeles Fashion District, Los Angeles Koreatown, Gardena, Buena Park, and Santa Clara, California and Carrollton, Texas. The Bank also has four loan production offices in Atlanta, Georgia, Aurora, Colorado, and Lynnwood and Seattle, Washington. 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.
Cautionary Note Regarding Forward-Looking Statements
Certain matters set forth herein constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including forward-looking statements relating to the Company’s current business plans and expectations regarding future operating results. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from those projected. These risks and uncertainties, some of which are beyond our control, include, but are not limited to: the uncertainties related to the coronavirus pandemic including, but not limited to, the potential adverse effect of the pandemic on the economy, our employees and customers, and our financial performance; the impact of the federal CARES Act and the significant additional lending activities undertaken by the Company in connection with the Small Business Administration’s Paycheck Protection Program enacted thereunder, including risks to the Company with respect to the uncertain application by the Small Business Administration of new borrower and loan eligibility, forgiveness and audit criteria; business and economic conditions, particularly those affecting the financial services industry and our primary market areas; our ability to successfully manage our credit risk and the sufficiency of our allowance for loan losses; factors that can impact the performance of our loan portfolio, including real estate values and liquidity in our primary market areas, the financial health of our commercial borrowers, the success of construction projects that we finance, including any loans acquired in acquisition transactions; our ability to effectively execute our strategic plan and manage our growth; interest rate fluctuations, which could have an adverse effect on our profitability; liquidity issues, including fluctuations in the fair value and liquidity of the securities we hold for sale and our ability to raise additional capital, if necessary; external economic and/or market factors, such as changes in monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve, inflation or deflation, changes in the demand for loans, and fluctuations in consumer spending, borrowing and savings habits, which may have an adverse impact on our financial condition; continued or increasing competition from other financial institutions, credit unions, and non-bank financial services companies, many of which are subject to different regulations than we are; challenges arising from unsuccessful attempts to expand into new geographic markets, products, or services; restraints on the ability of Open Bank to pay dividends to us, which could limit our liquidity; increased capital requirements imposed by banking regulators, which may require us to raise capital at a time when capital is not available on favorable terms or at all; a failure in the internal controls we have implemented to address the risks inherent to the business of banking; inaccuracies in our assumptions about future events, which could result in material differences between our financial projections and actual financial performance; changes in our management personnel or our inability to retain motivate and hire qualified management personnel; disruptions, security breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems; disruptions, security breaches, or other adverse events affecting the third-party vendors who perform several of our critical processing functions; an inability to keep pace with the rate of technological advances due to a lack of resources to invest in new technologies; risks related to potential acquisitions; political developments, uncertainties or instability, catastrophic events, acts of war or terrorism, or natural disasters, such as earthquakes, fires, drought, pandemic diseases (such as the coronavirus) or extreme weather events, any of which may affect services we use or affect our customers, employees or third parties with which we conduct business; incremental costs and obligations associated with operating as a public company; the impact of any claims or legal actions to which we may be subject, including any effect on our reputation; compliance with governmental and regulatory requirements, including the Dodd-Frank Act and others relating to banking, consumer protection, securities and tax matters, and our ability to maintain licenses required in connection with commercial mortgage origination, sale and servicing operations; changes in federal tax law or policy; and our ability the manage the foregoing and other factors set forth in the Company’s public reports. We describe these and other risks that could affect our results in Item 1A. “Risk Factors,” of our latest Annual Report on Form 10-K for the year ended December 31, 2020 and in our other subsequent filings with the Securities and Exchange Commission.
Consolidated Balance Sheet (unaudited) |
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(Dollars in thousands) |
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As of |
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|||||||||||||||||
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03/31/2021 |
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12/31/2020 |
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% change |
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03/31/2020 |
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% change |
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Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
127,524 |
|
|
$ |
106,405 |
|
|
|
19.8 |
% |
|
$ |
110,999 |
|
|
|
14.9 |
% |
Securities available for sale, at fair value |
|
|
102,413 |
|
|
|
91,791 |
|
|
|
11.6 |
% |
|
|
52,179 |
|
|
|
96.3 |
% |
Other investments |
|
|
9,953 |
|
|
|
10,006 |
|
|
|
-0.5 |
% |
|
|
9,253 |
|
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|
7.6 |
% |
Loans held for sale |
|
|
28,575 |
|
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|
26,659 |
|
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7.2 |
% |
|
|
4,382 |
|
|
|
552.1 |
% |
Real estate loans |
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|
662,445 |
|
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|
651,684 |
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1.7 |
% |
|
|
639,411 |
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3.6 |
% |
SBA loans |
|
|
263,185 |
|
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|
211,376 |
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24.5 |
% |
|
|
133,909 |
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|
96.5 |
% |
C & I loans |
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|
103,883 |
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|
107,308 |
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-3.2 |
% |
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|
99,860 |
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4.0 |
% |
Home mortgage loans |
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|
125,285 |
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|
128,211 |
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-2.3 |
% |
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|
119,984 |
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4.4 |
% |
Consumer & other loans |
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|
1,074 |
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|
1,157 |
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-7.2 |
% |
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|
3,395 |
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-68.4 |
% |
Gross loans, net of unearned income |
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|
1,155,872 |
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|
1,099,736 |
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5.1 |
% |
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|
996,559 |
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|
16.0 |
% |
Allowance for loan losses |
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|
(15,339 |
) |
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|
(15,352 |
) |
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-0.1 |
% |
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(10,748 |
) |
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42.7 |
% |
Net loans receivable |
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1,140,533 |
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|
1,084,384 |
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5.2 |
% |
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|
985,811 |
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15.7 |
% |
Premises and equipment, net |
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|
4,368 |
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|
4,544 |
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-3.9 |
% |
|
|
5,141 |
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-15.0 |
% |
Accrued interest receivable, net |
|
|
3,096 |
|
|
|
3,985 |
|
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|
-22.3 |
% |
|
|
3,056 |
|
|
|
1.3 |
% |
Servicing assets |
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|
7,492 |
|
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|
7,360 |
|
|
|
1.8 |
% |
|
|
6,963 |
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|
7.6 |
% |
Company owned life insurance |
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|
10,941 |
|
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|
10,879 |
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0.6 |
% |
|
|
10,683 |
|
|
|
2.4 |
% |
Deferred tax assets |
|
|
5,391 |
|
|
|
5,242 |
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|
2.8 |
% |
|
|
2,709 |
|
|
|
99.0 |
% |
Operating right-of-use assets |
|
|
6,443 |
|
|
|
6,786 |
|
|
|
-5.1 |
% |
|
|
7,885 |
|
|
|
-18.3 |
% |
Other assets |
|
|
8,605 |
|
|
|
8,785 |
|
|
|
-2.0 |
% |
|
|
10,532 |
|
|
|
-18.3 |
% |
Total assets |
|
$ |
1,455,334 |
|
|
$ |
1,366,826 |
|
|
|
6.5 |
% |
|
$ |
1,209,593 |
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|
|
20.3 |
% |
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Liabilities and Shareholders' Equity |
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Noninterest-bearing deposits |
|
$ |
571,985 |
|
|
$ |
522,754 |
|
|
|
9.4 |
% |
|
$ |
304,845 |
|
|
|
87.6 |
% |
Money market deposits and others |
|
|
354,148 |
|
|
|
328,323 |
|
|
|
7.9 |
% |
|
|
296,357 |
|
|
|
19.5 |
% |
Time deposits over |
|
|
190,960 |
|
|
|
200,210 |
|
|
|
-4.6 |
% |
|
|
210,507 |
|
|
|
-9.3 |
% |
Other time deposits |
|
|
168,297 |
|
|
|
148,803 |
|
|
|
13.1 |
% |
|
|
240,489 |
|
|
|
-30.0 |
% |
Total deposits |
|
|
1,285,390 |
|
|
|
1,200,090 |
|
|
|
7.1 |
% |
|
|
1,052,198 |
|
|
|
22.2 |
% |
Other borrowings |
|
|
5,000 |
|
|
|
5,000 |
|
|
|
0.0 |
% |
|
|
- |
|
|
|
100.0 |
% |
Accrued interest payable |
|
|
622 |
|
|
|
1,021 |
|
|
|
-39.1 |
% |
|
|
2,592 |
|
|
|
-76.0 |
% |
Operating lease liabilities |
|
|
8,016 |
|
|
|
8,429 |
|
|
|
-4.9 |
% |
|
|
9,701 |
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|
|
-17.4 |
% |
Other liabilities |
|
|
9,313 |
|
|
|
8,920 |
|
|
|
4.4 |
% |
|
|
7,003 |
|
|
|
33.0 |
% |
Total liabilities |
|
|
1,308,341 |
|
|
|
1,223,460 |
|
|
|
6.9 |
% |
|
|
1,071,494 |
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|
|
22.1 |
% |
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Common stock |
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|
78,654 |
|
|
|
78,657 |
|
|
|
0.0 |
% |
|
|
80,422 |
|
|
|
-2.2 |
% |
Additional paid-in capital |
|
|
8,652 |
|
|
|
8,521 |
|
|
|
1.5 |
% |
|
|
7,882 |
|
|
|
9.8 |
% |
Retained earnings |
|
|
59,373 |
|
|
|
55,348 |
|
|
|
7.3 |
% |
|
|
48,695 |
|
|
|
21.9 |
% |
Accumulated other comprehensive income |
|
|
314 |
|
|
|
840 |
|
|
|
-62.6 |
% |
|
|
1,100 |
|
|
|
-71.5 |
% |
Total shareholders' equity |
|
|
146,993 |
|
|
|
143,366 |
|
|
|
2.5 |
% |
|
|
138,099 |
|
|
|
6.4 |
% |
Total Liabilities and Shareholders' Equity |
|
$ |
1,455,334 |
|
|
$ |
1,366,826 |
|
|
|
6.5 |
% |
|
$ |
1,209,593 |
|
|
|
20.3 |
% |
Consolidated Statements of Income (unaudited) |
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|
(Dollars in thousands, except per share data) |
|
Three Months Ended |
|
|||||||||||||||||
|
|
3/31/2021 |
|
|
12/31/2020 |
|
|
% change |
|
|
3/31/2020 |
|
|
% change |
|
|||||
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
|
$ |
13,284 |
|
|
$ |
13,006 |
|
|
|
2.1 |
% |
|
$ |
13,694 |
|
|
|
-3.0 |
% |
Interest on securities available for sale |
|
|
236 |
|
|
|
257 |
|
|
|
-8.2 |
% |
|
|
319 |
|
|
|
-26.0 |
% |
Other interest income |
|
|
112 |
|
|
|
112 |
|
|
|
0.0 |
% |
|
|
332 |
|
|
|
-66.3 |
% |
Total interest income |
|
|
13,632 |
|
|
|
13,375 |
|
|
|
1.9 |
% |
|
|
14,345 |
|
|
|
-5.0 |
% |
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
|
|
877 |
|
|
|
1,194 |
|
|
|
-26.5 |
% |
|
|
3,229 |
|
|
|
-72.8 |
% |
Total interest expense |
|
|
877 |
|
|
|
1,194 |
|
|
|
-26.5 |
% |
|
|
3,229 |
|
|
|
-72.8 |
% |
Net interest income |
|
|
12,755 |
|
|
|
12,181 |
|
|
|
4.7 |
% |
|
|
11,116 |
|
|
|
14.7 |
% |
Provision for loan losses |
|
|
620 |
|
|
|
1,831 |
|
|
|
-66.1 |
% |
|
|
743 |
|
|
|
-16.6 |
% |
Net interest income after provision for loan losses |
|
|
12,135 |
|
|
|
10,350 |
|
|
|
17.2 |
% |
|
|
10,373 |
|
|
|
17.0 |
% |
Noninterest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposits |
|
|
274 |
|
|
|
283 |
|
|
|
-3.2 |
% |
|
|
368 |
|
|
|
-25.5 |
% |
Loan servicing fees, net of amortization |
|
|
531 |
|
|
|
367 |
|
|
|
44.7 |
% |
|
|
392 |
|
|
|
35.5 |
% |
Gain on sale of loans |
|
|
1,882 |
|
|
|
2,188 |
|
|
|
-14.0 |
% |
|
|
1,155 |
|
|
|
62.9 |
% |
Other income |
|
|
279 |
|
|
|
554 |
|
|
|
-49.6 |
% |
|
|
381 |
|
|
|
-26.8 |
% |
Total noninterest income |
|
|
2,966 |
|
|
|
3,392 |
|
|
|
-12.6 |
% |
|
|
2,296 |
|
|
|
29.2 |
% |
Noninterest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
4,662 |
|
|
|
5,536 |
|
|
|
-15.8 |
% |
|
|
5,071 |
|
|
|
-8.1 |
% |
Occupancy and equipment |
|
|
1,235 |
|
|
|
1,237 |
|
|
|
-0.2 |
% |
|
|
1,230 |
|
|
|
0.4 |
% |
Data processing and communication |
|
|
448 |
|
|
|
435 |
|
|
|
3.0 |
% |
|
|
409 |
|
|
|
9.5 |
% |
Professional fees |
|
|
314 |
|
|
|
265 |
|
|
|
18.5 |
% |
|
|
273 |
|
|
|
15.0 |
% |
FDIC insurance and regulatory assessments |
|
|
132 |
|
|
|
115 |
|
|
|
14.8 |
% |
|
|
106 |
|
|
|
24.5 |
% |
Promotion and advertising |
|
|
177 |
|
|
|
62 |
|
|
|
185.5 |
% |
|
|
162 |
|
|
|
9.3 |
% |
Directors’ fees |
|
|
116 |
|
|
|
97 |
|
|
|
19.6 |
% |
|
|
233 |
|
|
|
-50.2 |
% |
Foundation donation and other contributions |
|
|
507 |
|
|
|
400 |
|
|
|
26.8 |
% |
|
|
330 |
|
|
|
53.6 |
% |
Other expenses |
|
|
375 |
|
|
|
265 |
|
|
|
41.5 |
% |
|
|
393 |
|
|
|
-4.6 |
% |
Total noninterest expense |
|
|
7,966 |
|
|
|
8,412 |
|
|
|
-5.3 |
% |
|
|
8,207 |
|
|
|
-2.9 |
% |
Income before income taxes |
|
|
7,135 |
|
|
|
5,330 |
|
|
|
33.9 |
% |
|
|
4,462 |
|
|
|
59.9 |
% |
Provision for income taxes |
|
|
2,058 |
|
|
|
1,513 |
|
|
|
36.0 |
% |
|
|
1,163 |
|
|
|
77.0 |
% |
Net income |
|
$ |
5,077 |
|
|
$ |
3,817 |
|
|
|
33.0 |
% |
|
$ |
3,299 |
|
|
|
53.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per share |
|
$ |
9.77 |
|
|
$ |
9.55 |
|
|
|
2.3 |
% |
|
$ |
9.14 |
|
|
|
6.9 |
% |
Basic EPS |
|
$ |
0.33 |
|
|
$ |
0.25 |
|
|
|
32.0 |
% |
|
$ |
0.21 |
|
|
|
57.1 |
% |
Diluted EPS |
|
$ |
0.33 |
|
|
$ |
0.25 |
|
|
|
32.0 |
% |
|
$ |
0.21 |
|
|
|
57.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares of common stock outstanding |
|
|
15,037,635 |
|
|
|
15,016,700 |
|
|
|
0.1 |
% |
|
|
15,115,868 |
|
|
|
-0.5 |
% |
Weighted Average Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Basic |
|
|
15,022,876 |
|
|
|
15,079,407 |
|
|
|
-0.4 |
% |
|
|
15,486,549 |
|
|
|
-3.0 |
% |
- Diluted |
|
|
15,069,444 |
|
|
|
15,103,029 |
|
|
|
-0.2 |
% |
|
|
15,586,255 |
|
|
|
-3.3 |
% |
Key Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands, except ratios) |
|
Three Months Ended |
|
|||||||||||||||||
|
|
3/31/2021 |
|
|
12/31/2020 |
|
|
% change |
|
|
3/31/2020 |
|
|
% change |
|
|||||
Return on average assets (ROA)* |
|
|
1.44 |
% |
|
|
1.13 |
% |
|
|
0.31 |
% |
|
|
1.12 |
% |
|
|
0.32 |
% |
Return on average equity (ROE)* |
|
|
14.02 |
% |
|
|
10.72 |
% |
|
|
3.30 |
% |
|
|
9.44 |
% |
|
|
4.58 |
% |
Net interest margin * |
|
|
3.80 |
% |
|
|
3.73 |
% |
|
|
0.07 |
% |
|
|
3.95 |
% |
|
|
-0.15 |
% |
Efficiency ratio |
|
|
50.67 |
% |
|
|
54.02 |
% |
|
|
-3.35 |
% |
|
|
61.19 |
% |
|
|
-10.52 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total risk-based capital ratio |
|
|
15.04 |
% |
|
|
14.81 |
% |
|
|
0.23 |
% |
|
|
14.78 |
% |
|
|
0.26 |
% |
Tier 1 risk-based capital ratio |
|
|
13.79 |
% |
|
|
13.56 |
% |
|
|
0.23 |
% |
|
|
13.69 |
% |
|
|
0.10 |
% |
Common equity tier 1 ratio |
|
|
13.79 |
% |
|
|
13.56 |
% |
|
|
0.23 |
% |
|
|
13.69 |
% |
|
|
0.10 |
% |
Leverage ratio |
|
|
10.38 |
% |
|
|
10.55 |
% |
|
|
-0.17 |
% |
|
|||||||
FAQ
What is OPBK's net income for Q1 2021?
How many SBA PPP loans did OPBK originate in Q1 2021?
What are the total assets of OP Bancorp as of March 31, 2021?
How has OPBK's noninterest income changed from Q4 2020?
What is the status of OP Bancorp's loan portfolio quality?
