OP Bancorp Reports Fourth Quarter and Year End Results For 2020

Rhea-AI Summary

OP Bancorp (NASDAQ: OPBK) reported a net income of $3.9 million for Q4 2020, up from $3.6 million in Q3 2020, but down from $4.2 million in Q4 2019. The company’s interest income totaled $13.4 million, while net interest income increased to $12.2 million, with a net interest margin of 3.73%. However, a provision for loan losses rose to $1.8 million amid economic challenges. Total assets increased to $1.37 billion, with loans growing by 2.5% from Q3 2020. Nonperforming loans rose to $985,000, highlighting credit concerns, despite strong deposit growth of 17.6% year-over-year.

Positive

• Net income of $3.9 million for Q4 2020, marking a 8.4% increase from Q3 2020.
• Total assets increased to $1.37 billion, up 15.9% year-over-year.
• Deposits grew by 17.6% year-over-year, with noninterest-bearing deposits making up 43.6% of total deposits.

Negative

• Net income declined compared to Q4 2019, falling from $4.2 million.
• Provision for loan losses increased to $1.8 million, indicating rising credit risk.
• Nonperforming loans increased to $985,000, up from $330,000 in Q3 2020.

OP Bancorp (the “Company”) (NASDAQ: OPBK), the holding company of Open Bank (the “Bank”), today reported unaudited financial results for the fourth quarter of 2020. Net income for the fourth quarter of 2020 was $3.9 million, or $0.25 per diluted common share, compared to net income of $3.6 million, or $0.23 per diluted common share, for the third quarter of 2020, and net income of $4.2 million, or $0.26 per diluted common share, for the fourth quarter of 2019.

“I am pleased to report another strong quarter with solid financial results in this challenging environment. We have exceeded our expectations in all key financial areas through proactive management of the risks, margin, and expenses during this historically difficult period. As we start a new year, we will continue to put our best efforts in supporting our customers who are still experiencing many challenges through new PPP, loan deferments, and any other means of assistance. In addition, we continue to put our priority in the well-being of employees and will promote safer working environment through expanding remote capabilities and more automated platforms. The contribution to our communities will remain a focus as we seek more ways to work with various organizations to help those who are in need. Lastly and most importantly, managing risks and maintaining safe and sound banking operations will continue to be our key focus this year,” commented Min Kim, President and Chief Executive Officer of OP Bancorp and Open Bank.

Financial Highlights (unaudited)
(Dollars in thousands, except per share data)			As of or for the Three Months Ended
			December 31,					September 30,					December 31,
			2020					2020					2019
Income Statement Data:
Interest income			$	13,375				$	13,016				$	14,703
Interest expense				1,194					1,597					3,625
Net interest income				12,181					11,419					11,078
Provision for loan losses				1,790					1,399					411
Noninterest income				3,392					3,021					2,513
Noninterest expense				8,402					7,987					7,665
Income before taxes				5,381					5,054					5,515
Provision for income taxes				1,513					1,459					1,334
Net Income			$	3,868				$	3,595				$	4,181
Diluted earnings per share			$	0.25				$	0.23				$	0.26
Balance Sheet Data:
Loans held for sale			$	26,659				$	41,430				$	2,100
Gross loans, net of unearned income				1,099,736					1,072,790					990,138
Allowance for loan losses (ALL)				15,321					14,164					10,050
Total assets				1,366,867					1,339,821					1,179,520
Deposits				1,200,090					1,170,164					1,020,711
Shareholders’ equity				143,407					141,549					140,576
Performance Ratios:
Return on average assets (annualized)				1.15	%				1.11	%				1.45	%
Return on average equity (annualized)				10.86	%				10.22	%				12.05	%
Net interest margin (annualized)				3.73	%				3.66	%				3.99	%
Efficiency ratio (1)				53.96	%				55.31	%				56.40	%
Credit Quality:
Nonperforming loans			$	985				$	330				$	1,548
Nonperforming assets				985					330					1,548
Net charge-offs(recoveries) to average gross loans (annualized)				0.00	%				0.00	%				0.00	%
Nonperforming assets to gross loans plus OREO				0.09	%				0.03	%				0.16	%
ALL to nonperforming loans				1,555	%				4,295	%				649	%
ALL to gross loans, net of unearned income				1.39	%				1.32	%				1.02	%
Capital Ratios:
Total risk-based capital ratio				14.82	%				14.93	%				15.18	%
Tier 1 risk-based capital ratio				13.56	%				13.67	%				14.16	%
Common equity tier 1 ratio				13.56	%				13.67	%				14.16	%
Leverage ratio				10.55	%				10.85	%				12.14	%
(1) Represents noninterest expense divided by the sum of net interest income and noninterest income.

Financial Highlights (unaudited)
(Dollars in thousands, except per share data)			For the Twelve Months Ended
			December 31,					December 31,
			2020					2019
Income Statement Data:
Interest income			$	53,655				$	58,779
Interest expense				8,291					14,507
Net interest income				45,364					44,272
Provision for loan losses				5,920					1,102
Noninterest income				10,771					11,426
Noninterest expense				31,930					32,520
Income before taxes				18,285					22,076
Provision for income taxes				5,107					5,319
Net Income			$	13,178				$	16,757
Diluted earnings per share			$	0.85				$	1.03
Performance Ratios:
Return on average assets				1.04	%				1.51	%
Return on average equity				9.38	%				12.42	%
Net interest margin				3.72	%				4.19	%
Efficiency ratio (1)				56.88	%				58.39	%
(1) Represents noninterest expense divided by the sum of net interest income and noninterest income.

Financial Highlights, excluding Gain on COLI
(Dollars in thousands, except per share data)			For the Twelve Months Ended
			December 31,					December 31,
			2020					2019
Income before taxes, as reported			$	18,285				$	22,076
Gain on COLI				—					1,228
Provision for income taxes				5,107					5,319
Net Income, excluding gain on COLI			$	13,178				$	15,529
Diluted earnings per share			$	0.85				$	0.95
Return on average assets				1.04	%				1.40	%
Return on average equity				9.38	%				11.51	%

Pre-Provision Net Revenue
(Dollars in thousands)		For the Three Months Ended												For the Twelve Months Ended
		December 31,				September 30,				December 31,				December 31,				December 31,
		2020				2020				2019				2020				2019
Interest income		$	13,375			$	13,016			$	14,703			$	53,655			$	58,779
Interest expense			1,194				1,597				3,625				8,291				14,507
Net interest income			12,181				11,419				11,078				45,364				44,272
Noninterest income			3,392				3,021				2,513				10,771				11,426
Noninterest expense			8,402				7,987				7,665				31,930				32,520
Pre-provision net revenue		$	7,171			$	6,453			$	5,926			$	24,205			$	23,178
Reconciliation to Net Income:
Provision for loan losses			1,790				1,399				411				5,920				1,102
Provision for income taxes			1,513				1,459				1,334				5,107				5,319
Net Income		$	3,868			$	3,595			$	4,181			$	13,178			$	16,757
(1) 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.

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.

		Three Months Ended
		December 31,								September 30,								December 31,
		2020								2020								2019
(Dollars in thousands)		Interest & Fees				Yield				Interest & Fees				Yield				Interest & Fees				Yield
Contractual interest rate		$	12,156				4.35	%		$	11,715				4.39	%		$	13,337				5.44	%
SBA discount accretion			619				0.22	%			389				0.15	%			589				0.24	%
Amortization of net deferred fees			242				0.09	%			393				0.15	%			41				0.02	%
Net interest recognized on nonaccrual loans			(20	)			-0.01	%			48				0.02	%			-				0.00	%
Prepayment penalties and other fees			9				0.00	%			36				0.01	%			28				0.01	%
Yield on loans (as reported)		$	13,006				4.65	%		$	12,581				4.72	%		$	13,995				5.71	%

		Twelve Months Ended
		December 31,								December 31,
		2020								2019
(Dollars in thousands)		Interest & Fees				Yield				Interest & Fees				Yield
Contractual interest rate		$	48,639				4.60	%		$	52,866				5.66	%
SBA discount accretion			1,978				0.19	%			2,518				0.27	%
Amortization of net deferred fees			1,032				0.10	%			232				0.02	%
Net interest recognized on nonaccrual loans			111				0.01	%			(12	)			0.00	%
Prepayment penalties and other fees			69				0.01	%			116				0.01	%
Yield on loans (as reported)		$	51,829				4.91	%		$	55,720				5.96	%

Net interest margin for the fourth quarter of 2020 increased 7 basis points to 3.73% from 3.66% for the third quarter of 2020, primarily due to a 24 basis point decrease in the cost of interest-bearing liabilities, partially offset by an 8 basis point decrease in the reported yield on interest-earning assets.

Net interest income before provision for loan losses for the fourth quarter of 2020 was $12.2 million, an increase of $762,000, or 6.7%, compared to $11.4 million for the third quarter of 2020, primarily due to a $403,000 decrease in interest expense and a $359,000 increase in interest income.

Interest income on securities available for sale and other investments for the fourth quarter of 2020 decreased $66,000, or 15.2%, to $369,000, compared to $435,000 for the third quarter of 2020. The decrease was primarily due to a $62,000 decrease in interest income on securities available for sale primarily due to lower yields on securities purchased during the third and fourth quarters of 2020 and increased premium amortizations from prepayments on investment portfolio.

Interest income from contractual interest rates on loans for the fourth quarter of 2020 increased $441,000, or 3.8%, compared to the third quarter of 2020, reflecting an increase of $50.7 million, or 4.8% in average balance of loans, partially offset by a 4 basis point decrease in average contractual interest rate on loans. The amount of discount accretion on SBA loans for the fourth quarter of 2020 increased $230,000 compared to the third quarter of 2020 due to an increase in SBA loan payoffs. The reported interest income on loans, net of SBA discount accretions and other components, for the fourth quarter of 2020 increased $425,000, or 3.4%, compared to the third quarter of 2020.

Interest expense for the fourth quarter of 2020 was $1.2 million, a decrease of $403,000, or 25.2%, compared to $1.6 million for the third quarter of 2020, primarily due to continued downward adjustments of the Bank’s deposit rates, partially offset by an increase of $6.3 million, or 0.9%, in the average balance of interest-bearing liabilities.

Net interest margin for the fourth quarter of 2020 decreased 26 basis points to 3.73% from 3.99% for the fourth quarter of 2019, primarily due to a 120 basis point decrease in the reported yield on interest-earning assets, partially offset by a 133 basis point decrease in the cost of interest-bearing liabilities as a result of cumulative market rate cuts of 150 basis points by the Federal Reserve in first quarter of 2020.

Net interest income before provision for loan losses for the fourth quarter of 2020 increased $1.1 million, or 10.0%, to $12.2 million, compared to $11.1 million for the fourth quarter of 2019, primarily due to a $2.4 million decrease in interest expense, partially offset by a $1.3 million decrease in interest income.

Interest income on securities available for sale and other investments for the fourth quarter of 2020 decreased $339,000, or 47.8%, to $369,000, compared to $708,000, for the fourth quarter of 2019. The decrease was primarily due to a decrease in interest income on Fed funds as a result of the aforementioned cumulative rate cuts, a decrease in interest income on other investments from lower FHLB dividend income, and a decrease in interest income on securities available for sale as a result of lower yields from investment purchases and higher premium amortizations from accelerated prepayments in 2020.

Interest income from contractual interest rates on loans for the fourth quarter of 2020 decreased $1.2 million, or 8.9%, compared to the fourth quarter of 2019, reflecting a 109 basis point decrease in average contractual interest rate on loans, primarily due to the aforementioned cumulative rate cuts, partially offset by an increase of $139.5 million, or 14.3% in average balance of loans. The amount of discount accretion on SBA loans for the fourth quarter of 2020 increased $30,000 compared to the fourth quarter of 2019, primarily due to an increase in monthly discount accretions in line with an increase in SBA loan balance in 2020. The reported interest income on loans, net of SBA discount accretions and other components, for the fourth quarter of 2020 decreased $989,000, or 7.1%, compared to the fourth quarter of 2019.

Interest expense for the fourth quarter of 2020 decreased $2.4 million, or 67.1%, to $1.2 million, compared to $3.6 million for the fourth quarter of 2019, primarily due to the Bank’s downward adjustments in deposit rates after the rate cuts by the Federal Reserve in March of 2020 and a decrease of $26.8 million, or 3.8%, in the average balance of interest-bearing liabilities.

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.

		Three Months Ended													Percentage Change
		December 31,				September 30,				December 31,					Q4-20				Q4-20
		2020				2020				2019					vs. Q3-20				vs. Q4-19
Yield on loans			4.65	%			4.72	%			5.71	%				-0.07	%			-1.06	%
Yield on interest-earning assets			4.10	%			4.18	%			5.30	%				-0.08	%			-1.20	%
Cost of interest-bearing liabilities			0.70	%			0.94	%			2.03	%				-0.24	%			-1.33	%
Cost of deposits			0.40	%			0.56	%			1.44	%				-0.16	%			-1.04	%
Cost of funds			0.40	%			0.56	%			1.44	%				-0.16	%			-1.04	%
Net interest spread			3.40	%			3.24	%			3.27	%				0.16	%			0.13	%
Net interest margin			3.73	%			3.66	%			3.99	%				0.07	%			-0.26	%

		Twelve Months Ended									Percentage Change
		December 31,				December 31,					2020 YTD
		2020				2019					vs. 2019 YTD
Yield on loans			4.91	%			5.96	%				-1.05	%
Yield on interest-earning assets			4.40	%			5.56	%				-1.16	%
Cost of interest-bearing liabilities			1.18	%			2.13	%				-0.95	%
Cost of deposits			0.75	%			1.52	%				-0.77	%
Cost of funds			0.75	%			1.52	%				-0.77	%
Net interest spread			3.22	%			3.43	%				-0.21	%
Net interest margin			3.72	%			4.19	%				-0.47	%

The Bank recorded $1.8 million in provision for loan losses for the fourth quarter of 2020. Management evaluates the qualitative and quantitative factors on all loan types to reflect continued adverse impacts on national, state, and local economies caused by the COVID-19 pandemic. The changes in quantitative factors accounted for $1.3 million, or 70%, of provision for loan losses for the quarter, which includes $633,000 for accrued interest receivables on deferred loans, $440,000 for an increase in loan balance, and $226,000 for loan balance migration to classified loans. The Bank recorded a provision for loan losses of $1.4 million for the third quarter of 2020 and $411,000 for the fourth quarter of 2019.

Noninterest income for the fourth quarter of 2020 was $3.4 million, an increase of $371,000, or 12.3%, from $3.0 million for the third quarter of 2020, primarily due to an increase of $375,000 in gain on sale of loans and an increase of $180,000 in other income, partially offset by a decrease of $216,000 in loan servicing fees from an increase in SBA loan payoffs. Gain on sale of loans for the fourth quarter of 2020 was $2.2 million, an increase of $375,000, compared to $1.8 million for the third quarter of 2020. The Bank sold $28.5 million in SBA loans with an average premium of 8.83% in the fourth quarter of 2020, compared to the sale of $24.0 million in SBA loans with an average premium of 9.66% in the third quarter of 2020.

Noninterest income for the fourth quarter of 2020 was $3.4 million, an increase of $879,000, compared to $2.5 million for the fourth quarter of 2019, primarily due to an increase of $661,000 in gain on sale of loans and an increase of $343,000 in other income, partially offset by a decrease of $159,000 in service charges on deposits. Gain on sale of loans for the fourth quarter of 2019 was $1.5 million from the sale of $23.9 million in SBA loans with an average premium of 7.73%. The Bank sold a property that had been used for the Bank’s internal use with a gain of $213,000 during the fourth quarter of 2020, while the Bank sold OREO with a loss of $145,000 during the fourth quarter of 2019.

Noninterest expense for the fourth quarter of 2020 was $8.4 million, an increase of $415,000, or 5.2%, compared to $8.0 million for the third quarter of 2020. The increase was primarily due to an increase of $440,000 in salary and employee benefits as a result of year-end adjustments in employee bonus and incentive accruals.

Noninterest expense for the fourth quarter of 2020 was $8.4 million, an increase of $737,000, or 9.6%, compared to $7.7 million for the fourth quarter of 2019. The increase was primarily due to an increase of $1.1 million in salary and employee benefits, partially offset by a decrease of $201,000 in promotion and advertising expenses, and a decrease of $131,000 in director’s fees expenses. The increase in salary and employee benefits was primarily due to additional accruals made to employee bonus and incentives during the fourth quarter of 2020 compared to accrual reversals made to employee bonus during the fourth quarter of 2019. The decrease in promotion and advertising expenses was primarily due to Management’s proactive management of overhead expenses amid the COVID-19 pandemic. The decrease in director’s expense was due to a decrease of $108,000 in restricted stock unit expense resulting from the full vesting of the restricted stock units in July 2020.

Income tax provision was $1.5 million for the fourth quarter and for the third quarter of 2020, and $1.3 million for the fourth quarter of 2019. The effective tax rate for the fourth quarter of 2020 was 28.1%, compared to 28.9% for the third quarter of 2020 and 24.2% for the fourth quarter of 2019. The higher effective tax rate for the fourth quarter of 2020 compared to the fourth quarter of 2019 was primarily due to realizing a lower amount of tax benefits resulting from the exercise of non-qualified stock options. There was no non-qualified stock option exercised during the fourth quarter of 2020.

Balance Sheet

Total assets were $1.37 billion at December 31, 2020, an increase of $27.0 million, or 2.0%, compared to $1.34 billion at September 30, 2020, and an increase of $187.3 million, or 15.9%, compared to $1.18 billion at December 31, 2019.

Gross loans, net of unearned income, were $1.10 billion at December 31, 2020, an increase of $26.9 million, or 2.5%, from $1.07 billion at September 30, 2020, and an increase of $109.6 million, or 11.1%, from $990.1 million at December 31, 2019.

The Following tables shows new loan originations for the periods indicated.

		Three Month Ended
		December 31,				September 30,				December 31,
		2020				2020				2019
Real estate loans		$	30,828			$	39,476			$	58,854
SBA loans			16,634				77,479		(1)		26,347
C & I loans			47,308				10,458				6,342
Home mortgage loans			17,027				12,835				6,924
Total		$	111,797			$	140,248			$	98,467
(1) Include SBA Paycheck Protection Program (PPP) loans of $1.3 million.

Loan payoffs were $41.2 million for the fourth quarter of 2020, compared to $47.1 million for the third quarter of 2020, and $35.9 million for the fourth quarter of 2019.

Total deposits were $1.20 billion at December 31, 2020, an increase of $29.9 million, or 2.6%, from $1.17 billion at September 30, 2020, and an increase of $179.4 million, or 17.6%, from $1.02 billion at December 31, 2019. Noninterest-bearing deposits were $522.8 million at December 31, 2020, compared to $488.8 million at September 30, 2020, and $294.3 million at December 31, 2019. The increase in noninterest-bearing deposits during the fourth quarter of 2020 was primarily due to new accounts being opened during the quarter.

Noninterest-bearing deposits accounted for 43.6% of total deposits at December 31, 2020, compared to 41.8% at September 30, 2020, and 28.8% at December 31, 2019. The following table shows the Bank’s deposits, by type as a percentage of total deposits as of the periods indicated.

		As of
		December 31,				September 30,				December 31,
		2020				2020				2019
Noninterest-bearing deposits			43.6	%			41.8	%			28.8	%
Money market deposits and others			27.3	%			29.1	%			29.1	%
Time deposits over $250,000			16.7	%			16.6	%			20.9	%
Other time deposits			12.4	%			12.5	%			21.2	%
Total deposits			100.0	%			100.0	%			100.0	%

The Bank had $5.0 million in borrowings from the Federal Home Loan Bank (FHLB) at December 31, 2020 and $10.0 million at September 30, 2020, which has a 0% interest rate under the Zero-Rate Recovery Advance Program, FHLB’s pandemic relief initiatives. The Bank had no borrowings from the FHLB at December 31, 2019.

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 December 31, 2020, as summarized in the following table.

														Regulatory
										Well-capitalized				Capital Ratio
										Financial				Requirements (1),
										Institution				Including
										Basel III				Fully Phased-in
										Regulatory				Capital Conservation
Capital Ratios		OP Bancorp				Open Bank				Guidelines				Buffer
Total risk-based capital ratio			14.82	%			14.53	%			10.00	%			10.50	%
Tier 1 risk-based capital ratio			13.56	%			13.27	%			8.00	%			8.50	%
Common equity tier 1 ratio			13.56	%			13.27	%			6.50	%			7.00	%
Leverage ratio			10.55	%			10.32	%			5.00	%			4.00	%
(1) Fully phased in Basel III requirement for both OP Bancorp and Open Bank includes a 2.5% capital conservation buffer, except the leverage ratio.

The Company announced a fourth stock repurchase program on September 9, 2020, which authorizes the Company to repurchase up to 500,000 shares of its common stock. As of January 25, 2021, the Company has repurchased 201,000 shares of its common stock at an average price of $6.66 in the fourth stock repurchase program. Since the announcement of the initial stock repurchase program in January 2019, the Company has repurchased a total of 1.57 million shares of its common stock at an average repurchase price of $8.64 per share through January 25, 2021.

Asset Quality

Nonperforming loans were $985,000 at December 31, 2020, an increase of $655,000 from $330,000 at September 30, 2020 and a decrease of $563,000 from $1.5 million at December 31, 2019.

The Bank had no other real estate owned (OREO) at December 31, 2020, September 30, 2020 and December 31, 2019.

Nonperforming assets were $985,000, or 0.07% of total assets, at December 31, 2020, compared to $330,000, or 0.02% of total assets, at September 30, 2020, and $1.5 million, or 0.13% of total assets, at December 31, 2019. Nonperforming loans to gross loans were 0.09% at December 31, 2020, compared to 0.03% at September 30, 2020, and 0.16% at December 31, 2019.

Total classified loans were $7.3 million, or 0.67% of gross loans, at December 31, 2020, compared to $2.1 million, or 0.20% of gross loans, at September 30, 2020, and $3.5 million, or 0.35% of gross loans, at December 31, 2019. The increase of $5.2 million was primarily due to a commercial loan of $3.8 million, two SBA real estate loans of $751,000, which were reclassified from special mentioned loans, and a home mortgage loan of $600,000, which was newly classified and placed on a nonaccrual status. All of these loans are fully secured by real estate collaterals.

The following tables shows the trend of classified loans by loan type as of the date stated.

		As of
		December 31,				September 30,				June 30,				March 31,				December 31,
		2020				2020				2020				2020				2019
Classified loans by loan type		(Dollars in thousands)
SBA loans—real estate		$	1,523			$	774			$	786			$	2,021			$	2,036
SBA loans—non-real estate			198				121				124				159				33
Commercial and industrial			5,004				1,207				1,211				686				697
Home mortgage			600				—				689				694				698
Total classified loans		$	7,325			$	2,102			$	2,810			$	3,560			$	3,464
SBA guarantee balance retained
SBA loans—real estate			—				—				—				357				363
SBA loans—non-real estate			—				—				—				33				33
Total SBA unsold guarantee portion		$	—			$	—			$	—			$	390			$	396
Total classified loans, net of SBA guarantee balance retained		$	7,325			$	2,102			$	2,810			$	3,170			$	3,068

The Bank had 18 loans in deferred status with an aggregate balance of $31.2 million, or 2.7% of total loans at December 31, 2020, compared to 42 loans in deferred status with an aggregate balance of $56.9 million, or 5.1% of total loans at September 30, 2020. Since we started loan deferments under the CARES Act in the second quarter of 2020, 165 loans with an aggregate balance of $205.0 million have resumed regular payments or have been paid off through December 31, 2020.

The allowance for loan losses (ALL) was $15.3 million at December 31, 2020, compared to $14.2 million at September 30, 2020, and $10.1 million at December 31, 2019. The ALL was 1.39% of gross loans at December 31, 2020, 1.32% of gross loans at September 30, 2020, and 1.02% of gross loans at December 31, 2019. Excluding fully guaranteed SBA PPP loans, the ALL was 1.48% of gross loans at December 31, 2020, 1.40% of gross loans at September 30, 2020, and 1.02% of gross loans at December 31, 2019. The ALL was 1,555% of nonperforming assets at December 31, 2020, 4,295% at September 30, 2020, and 649% at December 31, 2019.

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: 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; the rapidly changing 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; 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, 2019 and in our other subsequent filings with the Securities and Exchange Commission.

Consolidated Balance Sheet (unaudited)
(Dollars in thousands)
		As of
		12/31/2020				09/30/2020				% change				12/31/2019				% change
Assets
Cash and cash equivalents		$	106,405			$	87,983				20.9	%		$	86,036				23.7	%
Securities available for sale, at fair value			91,791				93,482				-1.8	%			56,549				62.3	%
Other investments			10,006				10,002				0.0	%			9,176				9.0	%
Loans held for sale			26,659				41,430				-35.7	%			2,100				1169.5	%
Real estate loans			651,684				640,281				1.8	%			630,668				3.3	%
SBA loans			211,376				213,678				-1.1	%			132,268				59.8	%
C & I loans			107,308				91,814				16.9	%			103,852				3.3	%
Home mortgage loans			128,211				125,656				2.0	%			120,686				6.2	%
Consumer & other loans			1,157				1,361				-15.0	%			2,664				-56.6	%
Gross loans, net of unearned income			1,099,736				1,072,790				2.5	%			990,138				11.1	%
Allowance for loan losses			(15,321	)			(14,164	)			8.2	%			(10,050	)			52.4	%
Net loans receivable			1,084,415				1,058,626				2.4	%			980,088				10.6	%
Premises and equipment, net			4,544				4,756				-4.5	%			5,226				-13.1	%
Accrued interest receivable			3,995				4,968				-19.6	%			3,166				26.2	%
Servicing assets			7,360				7,222				1.9	%			7,024				4.8	%
Company owned life insurance			10,879				10,815				0.6	%			10,618				2.5	%
Deferred tax assets			5,242				3,911				34.0	%			3,189				64.4	%
Operating right-of-use assets			6,786				7,151				-5.1	%			8,254				-17.8	%
Other assets			8,785				9,475				-7.3	%			8,094				8.5	%
Total assets		$	1,366,867			$	1,339,821				2.0	%		$	1,179,520				15.9	%
Liabilities and Shareholders' Equity
Noninterest-bearing deposits		$	522,754			$	488,815				6.9	%		$	294,281				77.6	%
Money market deposits and others			328,323				339,981				-3.4	%			296,618				10.7	%
Time deposits over $250,000			200,210				194,630				2.9	%			213,345				-6.2	%
Other time deposits			148,803				146,738				1.4	%			216,467				-31.3	%
Total deposits			1,200,090				1,170,164				2.6	%			1,020,711				17.6	%
Other borrowings			5,000				10,000				-50.0	%			-				100.0	%
Accrued interest payable			1,021				1,355				-24.6	%			2,686				-62.0	%
Operating lease liabilities			8,429				8,857				-4.8	%			10,126				-16.8	%
Other liabilities			8,920				7,896				13.0	%			5,421				64.5	%
Total liabilities			1,223,460				1,198,272				2.1	%			1,038,944				17.8	%
Common stock			78,657				79,600				-1.2	%			86,381				-8.9	%
Additional paid-in capital			8,512				8,382				1.6	%			7,524				13.1	%
Retained earnings			55,398				52,590				5.3	%			46,483				19.2	%
Accumulated other comprehensive income			840				977				-14.0	%			188				346.8	%
Total shareholders' equity			143,407				141,549				1.3	%			140,576				2.0	%
Total Liabilities and Shareholders' Equity		$	1,366,867			$	1,339,821				2.0	%		$	1,179,520				15.9	%

Consolidated Statements of Income (unaudited)
(Dollars in thousands, except per share data)		Three Months Ended
		12/31/2020				09/30/2020				% change				12/31/2019				% change
Interest income
Interest and fees on loans		$	13,006			$	12,581				3.4	%		$	13,995				-7.1	%
Interest on securities available for sale			257				319				-19.4	%			334				-23.1	%
Other interest income			112				116				-3.4	%			374				-70.1	%
Total interest income			13,375				13,016				2.8	%			14,703				-9.0	%
Interest expense
Interest on deposits			1,194				1,597				-25.2	%			3,625				-67.1	%
Total interest expense			1,194				1,597				-25.2	%			3,625				-67.1	%
Net interest income			12,181				11,419				6.7	%			11,078				10.0	%
Provision for loan losses			1,790				1,399				27.9	%			411				335.5	%
Net interest income after provision for loan losses			10,391				10,020				3.7	%			10,667				-2.6	%
Noninterest income
Service charges on deposits			283				251				12.7	%			442				-36.0	%
Loan servicing fees, net of amortization			367				583				-37.0	%			333				10.2	%
Gain on sale of loans			2,188				1,813				20.7	%			1,527				43.3	%
Other income			554				374				48.1	%			211				162.6	%
Total noninterest income			3,392				3,021				12.3	%			2,513				35.0	%
Noninterest expense
Salaries and employee benefits			5,526				5,086				8.7	%			4,405				25.4	%
Occupancy and equipment			1,237				1,266				-2.3	%			1,207				2.5	%
Data processing and communication			435				424				2.6	%			420				3.6	%
Professional fees			265				287				-7.7	%			268				-1.1	%
FDIC insurance and regulatory assessments			115				112				2.7	%			71				62.0	%
Promotion and advertising			62				81				-23.5	%			263				-76.4	%
Directors’ fees			97				147				-34.0	%			228				-57.5	%
Foundation donation and other contributions			400				360				11.1	%			417				-4.1	%
Other expenses			265				224				18.3	%			386				-31.3	%
Total noninterest expense			8,402				7,987				5.2	%			7,665				9.6	%
Income before income taxes			5,381				5,054				6.5	%			5,515				-2.4	%
Provision for income taxes			1,513				1,459				3.7	%			1,334				13.4	%
Net income		$	3,868			$	3,595				7.6	%		$	4,181				-7.5	%
Book value per share		$	9.55			$	9.36				2.0	%		$	8.95				6.7	%
Basic EPS		$	0.25			$	0.23				8.7	%		$	0.26				-3.8	%
Diluted EPS		$	0.25			$	0.23				8.7	%		$	0.26				-3.8	%
Shares of common stock outstanding			15,016,700				15,126,270				-0.7	%			15,703,276				-4.4	%
Weighted Average Shares:
- Basic			15,079,407				15,148,833				-0.5	%			15,697,531				-3.9	%
- Diluted			15,103,029				15,182,733				-0.5	%			15,899,419				-5.0	%

Key Ratios
(Dollars in thousands, except ratios)		Three Months Ended
		12/31/2020				09/30/2020				% change				12/31/2019				% change
Return on average assets (ROA)*			1.15	%			1.11	%			0.04	%			1.45	%			-0.30	%
Return on average equity (ROE) *			10.86	%			10.22	%			0.64	%			12.05	%			-1.19	%
Net interest margin *			3.73	%			3.66	%			0.07	%			3.99	%			-0.26	%
Efficiency ratio			53.96	%			55.31	%			-1.35	%			56.40	%			-2.44	%
Total risk-based capital ratio			14.82	%			14.93	%			-0.11	%			15.18	%			-0.36	%
Tier 1 risk-based capital ratio			13.56	%			13.67	%			-0.11	%			14.16	%			-0.60	%
Common equity tier 1 ratio			13.56	%			13.67	%			-0.11	%			14.16	%			-0.60	%
Leverage ratio			10.55	%			10.85	%			-0.30	%			12.14	%			-1.59	%
* Annualized

Consolidated Statements of Income (unaudited)
(Dollars in thousands, except per share data)		Twelve Months Ended
		12/31/2020				12/31/2019				% change
Interest income
Interest and fees on loans		$	51,829			$	55,720				-7.0	%
Interest on securities available for sale			1,177				1,353				-13.0	%
Other interest income			650				1,706				-61.9	%
Total interest income			53,656				58,779				-8.7	%
Interest expense
Interest on deposits			8,292				14,507				-42.8	%
Total interest expense			8,292				14,507				-42.8	%
Net interest income			45,364				44,272				2.5	%
Provision for loan losses			5,920				1,102				437.2	%
Net interest income after provision for loan losses			39,444				43,170				-8.6	%
Noninterest income
Service charges on deposits			1,132				1,695				-33.2	%
Loan servicing fees, net of amortization			1,856				1,186				56.5	%
Gain on sale of loans			6,092				5,905				3.2	%
Other income			1,691				2,640				-35.9	%
Total noninterest income			10,771				11,426				-5.7	%
Noninterest expense
Salaries and employee benefits			20,031				20,267				-1.2	%
Occupancy and equipment			4,974				4,648				7.0	%
Data processing and communication			1,682				1,530				9.9	%
Professional fees			1,101				980				12.3	%
FDIC insurance and regulatory assessments			449				259				73.4	%
Promotion and advertising			467				806				-42.1	%
Directors’ fees			700				908				-22.9	%
Foundation donation and other contributions			1,335				1,586				-15.8	%
Other expenses			1,191				1,536				-22.5	%
Total noninterest expense			31,930				32,520				-1.8	%
Income before income taxes			18,285				22,076				-17.2	%
Provision for income taxes			5,107				5,319				-4.0	%
Net income		$	13,178			$	16,757				-21.4	%
Book value per share		$	9.55			$	9.36				2.0	%
Basic EPS		$	0.85			$	1.04				-18.3	%
Diluted EPS		$	0.85			$	1.03				-17.5	%
Shares of common stock outstanding			15,016,700				15,126,270				-0.7	%
Weighted Average Shares:
- Basic			15,196,351				15,741,926				-3.5	%
- Diluted			15,223,888				15,935,314				-4.5	%

Key Ratios
(Dollars in thousands, except ratios)		Twelve Months Ended
		12/31/2020				12/31/2019				% change
Return on average assets (ROA)			1.04	%			1.51	%			-0.47	%
Return on average equity (ROE)			9.38	%			12.42	%			-3.04	%
Net interest margin			3.72	%			4.19	%			-0.47	%
Efficiency ratio			56.88	%			58.39	%			-1.51	%
Total risk-based capital ratio			14.82	%			15.18	%			-0.36	%
Tier 1 risk-based capital ratio			13.56	%			14.16	%			-0.60	%
Common equity tier 1 ratio			13.56	%			14.16	%			-0.60	%
Leverage ratio			10.55	%			12.14	%			-1.59	%

Asset Quality
(Dollars in thousands, except ratios)		Three Months Ended
		12/31/2020				09/30/2020				06/30/2020				03/31/2020				12/31/2019
Nonaccrual Loans		$	985			$	-			$	689			$	1,203			$	1,215
Loans 90 days or more past due, accruing			-				-				-				-				-
Accruing restructured loans			-				330				330				330				333
Nonperforming loans			985				330				1,019				1,533				1,548
Other real estate owned (OREO)			-				-				-				-				-
Nonperforming assets			985				330				1,019				1,533				1,548
Classified loans			7,325				2,102				2,810				3,560				3,464
Nonperforming assets/total assets			0.07	%			0.02	%			0.08	%			0.13	%			0.13	%
Nonperforming assets/gross loans plus OREO			0.09	%			0.03	%			0.10	%			0.15	%			0.16	%
Nonperforming loans/gross loans			0.09	%			0.03	%			0.10	%			0.15	%			0.16	%
Allowance for loan losses/nonperforming loans			1,555	%			4,295	%			1,252	%			701	%			649	%
Allowance for loan losses/nonperforming assets			1,555	%			4,295	%			1,252	%			701	%			649	%
Allowance for loan losses/gross loans			1.39	%			1.32	%			1.22	%			1.08	%			1.02	%
Classified loans/gross loans			0.67	%			0.20	%			0.27	%			0.36	%			0.35	%
Net charge-offs(recoveries)		$	-			$	-			$	(28	)		$	45			$	(1	)
Net charge-offs(recoveries) to average gross loans *			0.00	%			0.00	%			-0.01	%			0.02	%			0.00	%
* Annualized
Accruing delinquent loans 30-89 days past due		12/31/2020				09/30/2020				06/30/2020				03/31/2020				12/31/2019
30-59 days		$	-			$	600			$	565			$	1,788			$	3,899
60-89 days			-				-				-				2,277				126
Total			-				600				565				4,065				4,025

Average Balance Sheet, Interest and Yield/Rate Analysis
(Dollars in thousands)		Three Months Ended
		December 31, 2020												September 30, 2020												December 31, 2019
		Average Balance				Interest and Fees				Yield/ Rate				Average Balance				Interest and Fees				Yield/ Rate				Average Balance				Interest and Fees				Yield/ Rate
Interest-Earning assets:
Federal funds sold and other investments		$	92,774			$	112				0.48	%		$	93,827			$	116				0.49	%		$	71,426			$	374				2.06	%
Securities available for sale			93,238				257				1.10				84,869				319				1.50				57,381				334				2.33
Total investments			186,012				369				0.79				178,696				435				0.97				128,807				708				2.18
Real estate loans			644,643				7,457				4.60				630,255				7,461				4.71				607,022				8,175				5.34
SBA loans			251,541				3,231				5.11				219,183				2,719				4.94				142,910				2,880				8.00
C & I loans			90,618				843				3.70				89,103				847				3.78				99,215				1,379				5.51
Home Mortgage loans			124,763				1,456				4.67				122,222				1,531				5.01				121,485				1,520				5.00
Consumer & other loans			1,325				19				5.70				1,412				23				6.48				2,778				41				5.86
Loans (1)			1,112,890				13,006				4.65				1,062,175				12,581				4.72				973,410				13,995				5.71
Total interest-earning assets			1,298,902				13,375				4.10				1,240,871				13,016				4.18				1,102,217				14,703				5.30
Noninterest-earning assets			49,117												52,145												51,026
Total assets		$	1,348,019											$	1,293,016											$	1,153,243
Interest-bearing liabilities:
Money market deposits and others		$	328,044				340				0.41	%		$	298,942				394				0.52	%		$	289,846				1,148				1.57	%
Time deposits			344,139				854				0.99				364,928				1,203				1.31				417,092				2,477				2.36
Total interest-bearing deposits			672,183				1,194				0.71				663,870				1,597				0.96				706,938				3,625				2.03
Borrowings			7,938				-				-				10,001				-				-				4				-				1.55
Total interest-bearing liabilities			680,121				1,194				0.70				673,871				1,597				0.94				706,942				3,625				2.03
Noninterest-bearing liabilities:
Noninterest-bearing deposits			507,694												460,965												289,592
Other noninterest-bearing liabilities			17,769												17,507												17,902
Total noninterest-bearing liabilities			525,463												478,472												307,494
Shareholders’ equity			142,435												140,673												138,807
Total liabilities and shareholders’ equity		$	1,348,019											$	1,293,016											$	1,153,243
Net interest income / interest rate spreads						$	12,181				3.40	%						$	11,419				3.24	%						$	11,078				3.27	%
Net interest margin											3.73	%											3.66	%											3.99	%
Cost of deposits & cost of funds:
Total deposits / cost of deposits		$	1,179,877			$	1,194				0.40	%		$	1,124,835			$	1,597				0.56	%		$	996,530			$	3,625				1.44	%
Total funding liabilities / cost of funds		$	1,187,815			$	1,194				0.40	%		$	1,134,836			$	1,597				0.56	%		$	996,534			$	3,625				1.44	%
(1) The average loan balance includes loans held for sale.

Average Balance Sheet, Interest and Yield/Rate Analysis
(Dollars in thousands)		Twelve Months Ended
		December 31, 2020												December 31, 2019
		Average Balance				Interest and Fees				Yield/ Rate				Average Balance				Interest and Fees				Yield/ Rate
Interest-Earning assets:
Federal funds sold and other investments		$	91,247			$	650				0.71	%		$	67,301			$	1,706				2.54	%
Securities available for sale			73,410				1,177				1.60				54,994				1,353				2.46
Total investments			164,657				1,827				1.11				122,295				3,059				2.50
Real estate loans			636,809				30,616				4.81				565,617				31,139				5.51
SBA loans			200,110				11,231				5.61				138,985				12,089				8.70
C & I loans			93,490				3,887				4.16				103,097				6,020				5.84
Home Mortgage loans			122,195				5,977				1.89				124,703				6,290				5.04
Consumer & other loans			2,102				118				5.61				2,843				182				6.40
Loans (1)			1,054,706				51,829				4.91				935,245				55,720				5.96
Total interest-earning assets			1,219,363				53,656				4.40				1,057,540				58,779				5.56
Noninterest-earning assets			49,825												48,924
Total assets		$	1,269,188											$	1,106,464
Interest-bearing liabilities:
Money market deposits and others		$	307,316				2,174				0.71	%		$	278,384				4,908				1.76	%
Time deposits			391,667				6,118				1.56				401,840				9,599				2.39
Total interest-bearing deposits			698,983				8,292				1.19				680,224				14,507				2.13
Borrowings			5,505				-				0.00				32				-				0.09
Total interest-bearing liabilities			704,488				8,292				1.18				680,256				14,507				2.13
Noninterest-bearing liabilities:
Noninterest-bearing deposits			406,401												276,073
Other noninterest-bearing liabilities			17,888												15,221
Total noninterest-bearing liabilities			424,289												291,294
Shareholders’ equity			140,411												134,914
Total liabilities and shareholders’ equity		$	1,269,188											$	1,106,464
Net interest income / interest rate spreads						$	45,364				3.22	%						$	44,272				3.43	%
Net interest margin											3.72	%											4.19	%
Cost of deposits & cost of funds:
Total deposits / cost of deposits		$	1,105,384			$	8,292				0.75	%		$	956,297			$	14,507				1.52	%
Total funding liabilities / cost of funds		$	1,110,889			$	8,292				0.75	%		$	956,329			$	14,507				1.52	%
(1) The average loan balance includes loans held for sale.

Loan Portfolio Breakdown by Industry
Excluding home mortgage and consumer loans
(Dollars in thousands)		As of December 31, 2020
Industry		Number of accounts				% of total			Balance				% of total
Real estate lessors			233				11.3	%	$	373,132				37.1	%
Hotel / motel			192				9.3			143,683				14.3
Food services / restaurant			282				13.7			38,645				3.8
Car washes			51				2.5			36,967				3.7
Laundry services			81				3.9			20,340				2.0
Educational service			14				0.7			6,502				0.6
Other			1,210				58.7			386,170				38.4
Total			2,063				100.0	%	$	1,005,439				100.0	%

Loan Deferment Summary by Industry
As of December 31, 2020
Excluding home mortgage and consumer loans
(Dollars in thousands)		Number of accounts												Loan balance
Industry		Number of accounts				% of deferment				% of total loans				Balance				% of deferment				% of total loans
Real estate lessors			1				6.3	%			0.4	%		$	1,302				4.3	%			0.3	%
Hotel / motel			10				62.5				5.2				20,276				67.3				14.1
Food services / restaurant			1				6.3				0.4				148				0.5				0.4
Car washes			1				6.3				2.0				2,148				7.1				5.8
Laundry services			1				6.3				1.2				330				1.1				1.6
Educational service			1				6.3				7.1				5,373				17.8				82.6
Other			1				6.3				0.1				556				1.8				0.1
Total			16				100.0	%			0.8	%		$	30,133				100.0	%			3.0	%

Loan Deferment Summary by Loan Type
As of December 31, 2020
(Dollars in thousands)		Number of accounts												Loan balance
Loan Type		Number of accounts				% of deferment				% of total loans				Balance				% of deferment				% of total loans
Real estate loans			14				77.8	%			3.9	%		$	29,655				95.1	%			4.6	%
C & I loans			2				11.1				1.0				478				1.5				0.4
Loans, excluding home mortgage and consumer loans			16				88.9				0.8				30,133				96.6				3.0
Home mortgage loans			2				11.1				0.6				1,053				3.4				0.8
Total			18				100.0	%			0.8	%		$	31,186				100.0	%			2.7	%

Loan Deferment Status Change by Loan Type
		Total deferments								Payment resumed
		under the CARES Act								or paid off								Remaining deferments
(Dollars in thousands)		through December 31, 2020								through December 31, 2020								as of December 31, 2020
Loan Type		Number of accounts				Balance				Number of accounts				Balance				Number of accounts				Balance
Loans, excluding home mortgage and consumer loans			114				206,011				98				175,878				16				30,133
Home mortgage loans			69				30,205				67				29,152				2				1,053
Total			183			$	236,216				165			$	205,030				18			$	31,186

 

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FAQ

What were OP Bancorp's Q4 2020 net income results?

OP Bancorp reported a net income of $3.9 million for Q4 2020.

How did OP Bancorp's net interest margin change in Q4 2020?

The net interest margin for Q4 2020 was 3.73%, an increase from 3.66% in Q3 2020.

What is the loan growth percentage for OP Bancorp in Q4 2020?

Loans grew by 2.5% from Q3 2020.

How much did OP Bancorp's total assets increase in Q4 2020?

Total assets increased to $1.37 billion, up 2.0% from Q3 2020.

What is the trend in OP Bancorp's nonperforming loans?

Nonperforming loans rose to $985,000 in Q4 2020, up from $330,000 in Q3 2020.