OP Bancorp Reports Net Income for 2024 Second Quarter of $5.4 Million and Diluted Earnings Per Share of $0.36
OP Bancorp (NASDAQ: OPBK) reported its financial results for the second quarter of 2024.
Key highlights include:
- Net income of $5.4 million, a 4.0% increase from $5.2 million in Q1 2024.
- Diluted EPS of $0.36, a 5.9% rise from $0.34 in Q1 2024.
- Net interest income of $16.2 million, up from $16.0 million in Q1 2024.
- Total assets grew by 2.5% to $2.29 billion.
- Gross loans increased by 3.6% to $1.87 billion.
- Total deposits rose by 2.4% to $1.94 billion.
- The net interest margin dropped slightly to 2.96%, down from 3.06%.
Key credit metrics showed stability with allowance for credit losses to gross loans at 1.22%. However, loans past due 30-89 days increased to 0.36% of gross loans. The company remains well-capitalized with a CET1 ratio of 12.01%.
OP Bancorp (NASDAQ: OPBK) ha riportato i risultati finanziari per il secondo trimestre del 2024.
I punti salienti includono:
- Utile netto di 5,4 milioni di dollari, un aumento del 4,0% rispetto a 5,2 milioni di dollari nel Q1 2024.
- EPS diluito di 0,36 dollari, un incremento del 5,9% rispetto a 0,34 dollari nel Q1 2024.
- Interessi netti pari a 16,2 milioni di dollari, in aumento rispetto a 16,0 milioni di dollari nel Q1 2024.
- Totale attivo cresciuto del 2,5% a 2,29 miliardi di dollari.
- Prestiti lordi aumentati del 3,6% a 1,87 miliardi di dollari.
- Depositi totali aumentati del 2,4% a 1,94 miliardi di dollari.
- Il margine di interesse netto è leggermente diminuito a 2,96%, in calo rispetto a 3,06%.
I principali indicatori di credito mostrano stabilità con la riserva per perdite su crediti sui prestiti lordi al 1,22%. Tuttavia, i prestiti scaduti da 30 a 89 giorni sono aumentati allo 0,36% dei prestiti lordi. L'azienda rimane ben capitalizzata con un rapporto CET1 del 12,01%.
OP Bancorp (NASDAQ: OPBK) reportó sus resultados financieros para el segundo trimestre de 2024.
Los aspectos más destacados incluyen:
- Ingreso neto de 5.4 millones de dólares, un aumento del 4.0% respecto a 5.2 millones de dólares en el Q1 2024.
- EPS diluido de 0.36 dólares, un incremento del 5.9% respecto a 0.34 dólares en el Q1 2024.
- Ingreso por intereses netos de 16.2 millones de dólares, en aumento desde 16.0 millones de dólares en el Q1 2024.
- Activos totales crecieron un 2.5% hasta 2.29 mil millones de dólares.
- Préstamos brutos aumentaron un 3.6% hasta 1.87 mil millones de dólares.
- Los depósitos totales aumentaron un 2.4% hasta 1.94 mil millones de dólares.
- El margen de interés neto disminuyó ligeramente al 2.96%, bajando desde el 3.06%.
Los principales indicadores de crédito mostraron estabilidad con la reserva para pérdidas crediticias sobre préstamos brutos al 1.22%. Sin embargo, los préstamos vencidos de 30 a 89 días aumentaron al 0.36% de los préstamos brutos. La empresa se mantiene bien capitalizada con un ratio CET1 del 12.01%.
OP Bancorp (NASDAQ: OPBK)는 2024년 2분기 재무 결과를 발표했습니다.
주요 내용은 다음과 같습니다:
- 순이익이 540만 달러로, 2024년 1분기의 520만 달러에서 4.0% 증가했습니다.
- 희석 주당 이익 (EPS)은 0.36달러로, 2024년 1분기의 0.34달러에서 5.9% 상승했습니다.
- 순이자수익이 1,620만 달러로, 2024년 1분기의 1,600만 달러에서 증가했습니다.
- 총 자산이 2.5% 증가하여 22억 9천만 달러에 달했습니다.
- 총 대출이 3.6% 증가하여 18억 7천만 달러에 이르렀습니다.
- 총 예금이 2.4% 증가하여 19억 4천만 달러에 달했습니다.
- 순이자 마진은 2.96%로 약간 감소하였고, 이전의 3.06%에서 낮아졌습니다.
주요 신용 지표는 총 대출 대비 신용 손실 충당금이 1.22%로 안정세를 보였습니다. 그러나 30-89일 이상 연체된 대출 비율은 총 대출의 0.36%로 증가했습니다. 회사는 CET1 비율 12.01%로 자본이 풍부한 상태를 유지하고 있습니다.
OP Bancorp (NASDAQ: OPBK) a publié ses résultats financiers pour le deuxième trimestre de 2024.
Les points clés incluent :
- Revenu net de 5,4 millions de dollars, en hausse de 4,0 % par rapport à 5,2 millions de dollars au T1 2024.
- BPA dilué de 0,36 dollar, en augmentation de 5,9 % par rapport à 0,34 dollar au T1 2024.
- Revenu net d'intérêt de 16,2 millions de dollars, en hausse par rapport à 16,0 millions de dollars au T1 2024.
- Actifs totaux en hausse de 2,5 % à 2,29 milliards de dollars.
- Prêts bruts en augmentation de 3,6 % à 1,87 milliard de dollars.
- Les dépôts totaux ont augmenté de 2,4 % à 1,94 milliard de dollars.
- La marge d'intérêt nette a légèrement baissé à 2,96 %, contre 3,06 % auparavant.
Les principaux indicateurs de crédit ont montré une stabilité avec une provision pour pertes de crédit de 1,22 % sur les prêts bruts. Cependant, le taux des prêts en retard de 30 à 89 jours a augmenté à 0,36 % des prêts bruts. L'entreprise reste bien capitalisée avec un ratio CET1 de 12,01 %.
OP Bancorp (NASDAQ: OPBK) hat seine Finanzergebnisse für das zweite Quartal 2024 veröffentlicht.
Die wichtigsten Highlights sind:
- Nettoergebnis von 5,4 Millionen Dollar, ein Anstieg von 4,0% gegenüber 5,2 Millionen Dollar im Q1 2024.
- Verwässerter Gewinn pro Aktie (EPS) von 0,36 Dollar, ein Anstieg von 5,9% im Vergleich zu 0,34 Dollar im Q1 2024.
- Nettozinseinnahmen von 16,2 Millionen Dollar, ein Anstieg gegenüber 16,0 Millionen Dollar im Q1 2024.
- Gesamtvermögen wuchs um 2,5% auf 2,29 Milliarden Dollar.
- Bruttokredite stiegen um 3,6% auf 1,87 Milliarden Dollar.
- Gesamteinlagen erhöhten sich um 2,4% auf 1,94 Milliarden Dollar.
- Die Nettozinsspanne sank leicht auf 2,96%, von zuvor 3,06%.
Wichtige Kreditkennzahlen zeigten Stabilität mit einer Rücklage für Kreditverluste von 1,22% der Bruttokredite. Allerdings stieg der Anteil der überfälligen Kredite von 30 bis 89 Tagen auf 0,36% der Bruttokredite. Das Unternehmen bleibt mit einem CET1-Verhältnis von 12,01% gut kapitalisiert.
- Net income increased by 4.0% to $5.4 million.
- Diluted EPS rose by 5.9% to $0.36.
- Total assets grew by 2.5% to $2.29 billion.
- Gross loans increased by 3.6% to $1.87 billion.
- Total deposits rose by 2.4% to $1.94 billion.
- Net interest margin decreased by 10 basis points to 2.96%.
- Provision for credit losses increased to $617 thousand from $145 thousand.
- Loans past due 30-89 days increased to 0.36% of gross loans from 0.22%.
Insights
OP Bancorp's Q2 2024 results show a mixed performance with some positive trends but also areas of concern:
- Net income increased 4.0% quarter-over-quarter to
$5.4 million , with diluted EPS up5.9% to$0.36 . This indicates improved profitability despite challenging conditions. - Loan growth was strong, with gross loans up
3.6% QoQ and9.0% YoY to$1.87 billion . However, this rapid growth could potentially lead to credit quality issues if not managed carefully. - Deposits grew
2.4% QoQ and4.4% YoY to$1.94 billion , but there's a concerning shift in composition. Noninterest-bearing deposits decreased to26.7% of total deposits from34.1% a year ago, while higher-cost time deposits increased significantly. - Net interest margin compressed to
2.96% , down 10 basis points QoQ and 44 basis points YoY, reflecting pressure on profitability from rising deposit costs. - Credit quality metrics remain relatively stable, but there's a notable increase in criticized loans to
0.88% of gross loans, up from0.64% in Q1 and0.44% a year ago. This could be an early warning sign of potential credit deterioration. - Capital levels remain strong with a CET1 ratio of
12.01% , providing a buffer against potential losses.
Overall, while OP Bancorp is showing resilience in a challenging environment, the margin compression, deposit mix shift and uptick in criticized loans warrant close monitoring in coming quarters.
From a credit risk perspective, OP Bancorp's Q2 2024 results present a nuanced picture:
- The allowance for credit losses (ACL) to gross loans ratio stands at
1.22% , relatively unchanged from the previous quarter. This suggests the bank believes its reserve levels are adequate for the current risk profile. - Nonperforming loans (NPLs) remained stable at
$4.4 million or0.23% of gross loans, indicating no immediate deterioration in asset quality. - However, loans 30-89 days past due increased to
0.36% of gross loans from0.22% in Q1. While not alarming, this uptick bears watching as it could be an early indicator of future NPLs. - The most concerning trend is the sharp increase in criticized loans, which rose to
$16.4 million or0.88% of gross loans, up from0.64% in Q1 and0.44% a year ago. This117.9% year-over-year increase suggests growing stress in the loan portfolio. - The bank's rapid loan growth (
9.0% YoY) in a challenging economic environment could potentially lead to credit quality issues if underwriting standards have been relaxed to achieve this growth. - The provision for credit losses increased to
$617 thousand from$145 thousand in Q1, primarily due to qualitative factors such as weakening economic conditions and increasing criticized loans.
While overall credit metrics remain manageable, the significant increase in criticized loans and higher provisioning suggest growing caution from management about the loan portfolio's health. The bank's ability to manage these emerging risks will be important in maintaining credit quality in the coming quarters.
OP Bancorp's Q2 2024 results reflect broader trends in the banking industry, with some unique aspects:
- The bank's net interest margin (NIM) compression to
2.96% mirrors industry-wide challenges as deposit costs rise faster than asset yields. This squeeze on profitability is a common theme for many banks in the current rate environment. - The shift in deposit mix, with noninterest-bearing deposits declining to
26.7% of total deposits from34.1% a year ago, is also an industry-wide phenomenon. Customers are seeking higher yields, leading to increased funding costs for banks. - OP Bancorp's loan growth of
9.0% YoY is impressive given the challenging economic backdrop. This outpaces many peers and suggests the bank is finding opportunities in its niche markets. - The increase in criticized loans to
0.88% of gross loans, while concerning, is not out of line with industry trends as economic uncertainties persist. However, it's rising faster than some peers, warranting close attention. - The bank's efficiency ratio of
59.81% improved from62.14% in Q1, indicating better cost management. This is important in a low NIM environment. - OP Bancorp's focus on SBA lending (with
$242.4 million in SBA loans) provides a unique revenue stream through loan sales, with$2.3 million in gains this quarter. This diversification is valuable in the current environment.
Overall, OP Bancorp is navigating industry headwinds relatively well, leveraging its niche in SBA lending and maintaining strong loan growth. However, the NIM pressure and increasing criticized loans reflect broader challenges that will likely persist for the banking sector in the near term.
2024 Second Quarter Highlights compared with 2024 First Quarter:
-
Financial Results:
-
Net income of
$5.4 million 4.0% increase compared to$5.2 million -
Diluted earnings per share of
$0.36 5.9% increase compared to$0.34 -
Net interest income of
$16.2 million $16.0 million -
Net interest margin of
2.96% , compared to3.06% -
Provision for credit losses of
$617 thousand $145 thousand -
Total assets of
$2.29 billion 2.5% increase compared to$2.23 billion -
Gross loans of
$1.87 billion 3.6% increase compared to$1.80 billion -
Total deposits of
$1.94 billion 2.4% increase compared to$1.90 billion
-
Net income of
-
Credit Quality:
-
Allowance for credit losses to gross loans of
1.22% , compared to1.23% -
Net charge-offs(1) to average gross loans(2) of (0.00)%, compared to
0.01% -
Loans past due 30-89 days to gross loans of
0.36% , compared to0.22% -
Nonperforming loans to gross loans of
0.23% , compared to0.24% -
Criticized loans(3) to gross loans of
0.88% , compared to0.64%
-
Allowance for credit losses to gross loans of
-
Capital Levels:
-
Remained well-capitalized with a Common Equity Tier 1 (“CET1”) ratio of
12.01% -
Book value per common share increased to
$13.22 $13.00 -
Repurchased 224,321 shares of common stock at an average price of
$9.64 -
Paid quarterly cash dividend of
$0.12
-
Remained well-capitalized with a Common Equity Tier 1 (“CET1”) ratio of
__________________________________________________________
(1) Annualized.
(2) Includes loans held for sale.
(3) Includes special mention, substandard, doubtful, and loss categories.
Min Kim, President and Chief Executive Officer:
“Even with the extended pressure on the business and banking environment, we continued to grow our loans and deposits while improving net income and earnings per share over the last quarter. Our net interest margin was controlled with a slight decline while our credit quality remained strong. We remain optimistic about our future growth and performance and will continue to focus on executing our strategic goals while maintaining an optimal risk profile,” said Min Kim, President and Chief Executive.
SELECTED FINANCIAL HIGHLIGHTS
|
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|
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|
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||||||||
($ in thousands, except per share data) |
|
As of and For the Three Months Ended |
|
% Change 2Q2024 vs. |
||||||||||||||
|
|
2Q2024 |
|
|
|
1Q2024 |
|
|
|
2Q2023 |
|
|
1Q2024 |
|
|
2Q2023 |
|
|
Selected Income Statement Data: |
|
|
|
|
|
|
|
|
|
|
||||||||
Net interest income |
|
$ |
16,194 |
|
|
$ |
15,979 |
|
|
$ |
17,252 |
|
|
1.3 |
% |
|
(6.1 |
)% |
Provision for credit losses |
|
|
617 |
|
|
|
145 |
|
|
|
— |
|
|
325.5 |
|
|
n/m |
|
Noninterest income |
|
|
4,184 |
|
|
|
3,586 |
|
|
|
3,605 |
|
|
16.7 |
|
|
16.1 |
|
Noninterest expense |
|
|
12,189 |
|
|
|
12,157 |
|
|
|
12,300 |
|
|
0.3 |
|
|
(0.9 |
) |
Income tax expense |
|
|
2,136 |
|
|
|
2,037 |
|
|
|
2,466 |
|
|
4.9 |
|
|
(13.4 |
) |
Net income |
|
|
5,436 |
|
|
|
5,226 |
|
|
|
6,091 |
|
|
4.0 |
|
|
(10.8 |
) |
Diluted earnings per share |
|
|
0.36 |
|
|
|
0.34 |
|
|
|
0.39 |
|
|
5.9 |
|
|
(7.7 |
) |
Selected Balance Sheet Data: |
|
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|
||||||||
Gross loans |
|
$ |
1,870,106 |
|
|
$ |
1,804,987 |
|
|
$ |
1,716,197 |
|
|
3.6 |
% |
|
9.0 |
% |
Total deposits |
|
|
1,940,821 |
|
|
|
1,895,411 |
|
|
|
1,859,639 |
|
|
2.4 |
|
|
4.4 |
|
Total assets |
|
|
2,290,680 |
|
|
|
2,234,520 |
|
|
|
2,151,701 |
|
|
2.5 |
|
|
6.5 |
|
Average loans(1) |
|
|
1,843,284 |
|
|
|
1,808,932 |
|
|
|
1,725,764 |
|
|
1.9 |
|
|
6.8 |
|
Average deposits |
|
|
1,970,320 |
|
|
|
1,836,331 |
|
|
|
1,817,101 |
|
|
7.3 |
|
|
8.4 |
|
Credit Quality: |
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|
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|
|
|
||||||||
Nonperforming loans |
|
$ |
4,389 |
|
|
$ |
4,343 |
|
|
$ |
3,447 |
|
|
1.1 |
% |
|
27.3 |
% |
Nonperforming loans to gross loans |
|
|
0.23 |
% |
|
|
0.24 |
% |
|
|
0.20 |
% |
|
(0.01 |
) |
|
0.03 |
|
Criticized loans(2) to gross loans |
|
|
0.88 |
|
|
|
0.64 |
|
|
|
0.44 |
|
|
0.24 |
|
|
0.44 |
|
Net charge-offs (recoveries)(3) to average gross loans(1) |
|
|
(0.00 |
) |
|
|
0.01 |
|
|
|
0.00 |
|
|
(0.01 |
) |
|
(0.00 |
) |
Allowance for credit losses to gross loans |
|
|
1.22 |
|
|
|
1.23 |
|
|
|
1.21 |
|
|
(0.01 |
) |
|
0.01 |
|
Allowance for credit losses to nonperforming loans |
|
|
519 |
|
|
|
510 |
|
|
|
603 |
|
|
9.00 |
|
|
(84.00 |
) |
Financial Ratios: |
|
|
|
|
|
|
|
|
|
|
||||||||
Return on average assets(3) |
|
|
0.95 |
% |
|
|
0.96 |
% |
|
|
1.15 |
% |
|
(0.01 |
)% |
|
(0.20 |
)% |
Return on average equity(3) |
|
|
11.23 |
|
|
|
10.83 |
|
|
|
13.27 |
|
|
0.40 |
|
|
(2.04 |
) |
Net interest margin(3) |
|
|
2.96 |
|
|
|
3.06 |
|
|
|
3.40 |
|
|
(0.10 |
) |
|
(0.44 |
) |
Efficiency ratio(4) |
|
|
59.81 |
|
|
|
62.14 |
|
|
|
58.97 |
|
|
(2.33 |
) |
|
0.84 |
|
Common equity tier 1 capital ratio |
|
|
12.01 |
|
|
|
12.34 |
|
|
|
11.92 |
|
|
(0.33 |
) |
|
0.09 |
|
Leverage ratio |
|
|
9.28 |
|
|
|
9.65 |
|
|
|
9.50 |
|
|
(0.37 |
) |
|
(0.22 |
) |
Book value per common share |
|
$ |
13.22 |
|
|
$ |
13.00 |
|
|
$ |
12.16 |
|
|
1.7 |
|
|
8.7 |
|
|
|
|
|
|
|
|
|
|
|
|
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(1) |
Includes loans held for sale. |
|
(2) |
Includes special mention, substandard, doubtful, and loss categories. |
|
(3) |
Annualized. |
|
(4) |
Represents noninterest expense divided by the sum of net interest income and noninterest income. |
INCOME STATEMENT HIGHLIGHTS
Net Interest Income and Net Interest Margin
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($ in thousands) |
|
For the Three Months Ended |
|
% Change 2Q2024 vs. |
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|
|
2Q2024 |
|
|
1Q2024 |
|
|
2Q2023 |
|
1Q2024 |
|
|
2Q2023 |
|
|
Interest Income |
|
|
|
|
|
|
|
|
|
|
|||||
Interest income |
|
$ |
34,357 |
|
$ |
32,913 |
|
$ |
30,102 |
|
4.4 |
% |
|
14.1 |
% |
Interest expense |
|
|
18,163 |
|
|
16,934 |
|
|
12,850 |
|
7.3 |
|
|
41.3 |
|
Net interest income |
|
$ |
16,194 |
|
$ |
15,979 |
|
$ |
17,252 |
|
1.3 |
% |
|
(6.1 |
)% |
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($ in thousands) |
|
For the Three Months Ended |
|
Yield Change 2Q2024 vs. |
||||||||||||||||||||
|
2Q2024 |
|
|
1Q2024 |
|
|
2Q2023 |
|
|
|||||||||||||||
|
Interest and Fees |
|
Yield/Rate(1) |
|
Interest and Fees |
|
Yield/Rate(1) |
|
Interest and Fees |
|
Yield/Rate(1) |
|
1Q2024 |
|
|
2Q2023 |
|
|||||||
Interest-earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Loans |
|
$ |
30,605 |
|
6.67 |
% |
|
$ |
30,142 |
|
6.69 |
% |
|
$ |
27,288 |
|
6.34 |
% |
|
(0.02 |
)% |
|
0.33 |
% |
Total interest-earning assets |
|
|
34,357 |
|
6.29 |
|
|
|
32,913 |
|
6.32 |
|
|
|
30,102 |
|
5.94 |
|
|
(0.03 |
) |
|
0.35 |
|
Interest-bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest-bearing deposits |
|
|
17,343 |
|
4.84 |
|
|
|
15,675 |
|
4.77 |
|
|
|
11,920 |
|
3.98 |
|
|
0.07 |
|
|
0.86 |
|
Total interest-bearing liabilities |
|
|
18,163 |
|
4.81 |
|
|
|
16,934 |
|
4.76 |
|
|
|
12,850 |
|
4.01 |
|
|
0.05 |
|
|
0.80 |
|
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net interest income / interest rate spreads |
|
|
16,194 |
|
1.48 |
|
|
|
15,979 |
|
1.56 |
|
|
|
17,252 |
|
1.93 |
|
|
(0.08 |
) |
|
(0.45 |
) |
Net interest margin |
|
|
|
2.96 |
|
|
|
|
3.06 |
|
|
|
|
3.40 |
|
|
(0.10 |
) |
|
(0.44 |
) |
|||
Total deposits / cost of deposits |
|
|
17,343 |
|
3.54 |
|
|
|
15,675 |
|
3.43 |
|
|
|
11,920 |
|
2.63 |
|
|
0.11 |
|
|
0.91 |
|
Total funding liabilities / cost of funds |
|
|
18,163 |
|
3.57 |
|
|
|
16,934 |
|
3.50 |
|
|
|
12,850 |
|
2.71 |
|
|
0.07 |
|
|
0.86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| (1) | Annualized. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
($ in thousands) |
|
For the Three Months Ended |
|
Yield Change 2Q2024 vs. |
|||||||||||||||||||||||
|
2Q2024 |
|
|
1Q2024 |
|
|
2Q2023 |
|
|
||||||||||||||||||
|
Interest & Fees |
|
Yield(1) |
|
Interest & Fees |
|
Yield(1) |
|
Interest & Fees |
|
Yield(1) |
|
1Q2024 |
|
|
2Q2023 |
|
||||||||||
Loan Yield Component: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Contractual interest rate |
|
$ |
29,719 |
|
|
6.48 |
% |
|
$ |
28,877 |
|
|
6.41 |
% |
|
$ |
26,411 |
|
|
6.13 |
% |
|
0.07 |
% |
|
0.35 |
% |
SBA loan discount accretion(2) |
|
|
1,087 |
|
|
0.24 |
|
|
|
881 |
|
|
0.20 |
|
|
|
1,078 |
|
|
0.25 |
|
|
0.04 |
|
|
(0.01 |
) |
Amortization of net deferred fees |
|
|
(44 |
) |
|
(0.01 |
) |
|
|
54 |
|
|
0.01 |
|
|
|
16 |
|
|
0.01 |
|
|
(0.02 |
) |
|
(0.02 |
) |
Amortization of premium |
|
|
(396 |
) |
|
(0.09 |
) |
|
|
(428 |
) |
|
(0.10 |
) |
|
|
(452 |
) |
|
(0.11 |
) |
|
0.01 |
|
|
0.02 |
|
Net interest recognized on nonaccrual loans |
|
|
(3 |
) |
|
— |
|
|
|
492 |
|
|
0.11 |
|
|
|
40 |
|
|
0.01 |
|
|
(0.11 |
) |
|
(0.01 |
) |
Prepayment penalties and other fees(3) |
|
|
242 |
|
|
0.05 |
|
|
|
266 |
|
|
0.06 |
|
|
|
195 |
|
|
0.05 |
|
|
(0.01 |
) |
|
— |
|
Yield on loans |
|
$ |
30,605 |
|
|
6.67 |
% |
|
$ |
30,142 |
|
|
6.69 |
% |
|
$ |
27,288 |
|
|
6.34 |
% |
|
(0.02 |
)% |
|
0.33 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| (1) | Annualized. |
|
| (2) |
Includes discount accretion from SBA loan payoffs of |
|
| (3) |
Includes prepayment penalty income of |
Second Quarter 2024 vs. First Quarter 2024
Net interest income increased
-
An
$858 thousand $62.9 million 86.2% , increase in average balance.
-
A
$463 thousand $34.4 million 1.9% , increase in average balance.
-
A
$439 thousand $31.4 million 28.9% , decrease in average balance.
-
A
$1.7 million $119.3 million 9.0% , increase in average balance.
Second Quarter 2024 vs. Second Quarter 2023
Net interest income decreased
-
A
$5.4 million $239.8 million 20.0% , increase in average balance and a 86 basis point increase in average cost.
-
A
$3.3 million $117.5 million 6.8% , increase in average balance and a 33 basis point increase in average yield.
-
An
$844 thousand $56.8 million 71.7% , increase in average balance and a 36 basis point increase in average yield.
Provision for Credit Losses
|
|
|
|
|
|
|
|||||
($ in thousands) |
|
For the Three Months Ended |
|||||||||
|
|
2Q2024 |
|
|
|
1Q2024 |
|
|
|
2Q2023 |
|
Provision for credit losses on loans |
|
$ |
627 |
|
|
$ |
193 |
|
|
$ |
— |
Reversal of credit losses on off-balance sheet exposure |
|
|
(10 |
) |
|
|
(48 |
) |
|
|
— |
Total provision for credit losses |
|
$ |
617 |
|
|
$ |
145 |
|
|
$ |
— |
|
|
|
|
|
|
|
|||||
Second Quarter 2024 vs. First Quarter 2024
The Company recorded a
Provision for credit losses on loans of
Second Quarter 2024 vs. Second Quarter 2023
The Company recorded a
Noninterest Income
|
|
|
|
|
|
|
|
|
|
|
|||||
($ in thousands) |
|
For the Three Months Ended |
|
% Change 2Q2024 vs. |
|||||||||||
|
|
2Q2024 |
|
|
1Q2024 |
|
|
2Q2023 |
|
1Q2024 |
|
|
2Q2023 |
|
|
Noninterest Income |
|
|
|
|
|
|
|
|
|
|
|||||
Service charges on deposits |
|
$ |
793 |
|
$ |
612 |
|
$ |
573 |
|
29.6 |
% |
|
38.4 |
% |
Loan servicing fees, net of amortization |
|
|
575 |
|
|
772 |
|
|
595 |
|
(25.5 |
) |
|
(3.4 |
) |
Gain on sale of loans |
|
|
2,325 |
|
|
1,703 |
|
|
2,098 |
|
36.5 |
|
|
10.8 |
|
Other income |
|
|
491 |
|
|
499 |
|
|
339 |
|
(1.6 |
) |
|
44.8 |
|
Total noninterest income |
|
$ |
4,184 |
|
$ |
3,586 |
|
$ |
3,605 |
|
16.7 |
% |
|
16.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||
Second Quarter 2024 vs. First Quarter 2024
Noninterest income increased
-
Gain on sale of loans was
$2.3 million $622 thousand $1.7 million $32.1 million 8.58% , compared to the sale of$24.8 million 8.33% .
-
Service charges on deposits was
$793 thousand $181 thousand $612 thousand
-
Loan servicing fees, net of amortization, was
$575 thousand $197 thousand $772 thousand
Second Quarter 2024 vs. Second Quarter 2023
Noninterest income increased
-
Gain on sale of loans was
$2.3 million $227 thousand $2.1 million $32.1 million 8.58% , compared to the sale of$36.8 million 6.64% .
-
Service charges on deposits was
$793 thousand $220 thousand $573 thousand
-
Other income was
$491 thousand $152 thousand $339 thousand $98 thousand
Noninterest Expense
|
|
|
|
|
|
|
|
|
|
|
|||||
($ in thousands) |
|
For the Three Months Ended |
|
% Change 2Q2024 vs. |
|||||||||||
|
|
2Q2024 |
|
|
1Q2024 |
|
|
2Q2023 |
|
1Q2024 |
|
|
2Q2023 |
|
|
Noninterest Expense |
|
|
|
|
|
|
|
|
|
|
|||||
Salaries and employee benefits |
|
$ |
7,568 |
|
$ |
7,841 |
|
$ |
7,681 |
|
(3.5 |
)% |
|
(1.5 |
)% |
Occupancy and equipment |
|
|
1,660 |
|
|
1,655 |
|
|
1,598 |
|
0.3 |
|
|
3.9 |
|
Data processing and communication |
|
|
530 |
|
|
487 |
|
|
546 |
|
8.8 |
|
|
(2.9 |
) |
Professional fees |
|
|
406 |
|
|
395 |
|
|
381 |
|
2.8 |
|
|
6.6 |
|
FDIC insurance and regulatory assessments |
|
|
378 |
|
|
374 |
|
|
420 |
|
1.1 |
|
|
(10.0 |
) |
Promotion and advertising |
|
|
151 |
|
|
149 |
|
|
159 |
|
1.3 |
|
|
(5.0 |
) |
Directors’ fees |
|
|
178 |
|
|
157 |
|
|
210 |
|
13.4 |
|
|
(15.2 |
) |
Foundation donation and other contributions |
|
|
539 |
|
|
540 |
|
|
594 |
|
(0.2 |
) |
|
(9.3 |
) |
Other expenses |
|
|
779 |
|
|
559 |
|
|
711 |
|
39.4 |
|
|
9.6 |
|
Total noninterest expense |
|
$ |
12,189 |
|
$ |
12,157 |
|
$ |
12,300 |
|
0.3 |
% |
|
(0.9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|||||
Second Quarter 2024 vs. First Quarter 2024
Noninterest expense increased
-
Other expenses increased
$220 thousand $147 thousand $84 thousand
-
Data processing and communication increased
$43 thousand
-
Salaries and employee benefits decreased
$273 thousand
Second Quarter 2024 vs. Second Quarter 2023
Noninterest expense decreased
-
Salaries and employee benefits decreased
$113 thousand
-
Foundation donations and other contributions decreased
$55 thousand
-
Other expenses increased
$68 thousand $84 thousand
Income Tax Expense
Second Quarter 2024 vs. First Quarter 2024
Income tax expense was
Second Quarter 2024 vs. Second Quarter 2023
Income tax expense was
BALANCE SHEET HIGHLIGHTS
Loans
|
|
|
|
|
|
|
|
|
|
|
|||||
($ in thousands) |
|
As of |
|
% Change 2Q2024 vs. |
|||||||||||
|
|
2Q2024 |
|
|
1Q2024 |
|
|
2Q2023 |
|
1Q2024 |
|
|
2Q2023 |
|
|
CRE loans |
|
$ |
931,284 |
|
$ |
905,534 |
|
$ |
847,863 |
|
2.8 |
% |
|
9.8 |
% |
SBA loans |
|
|
242,395 |
|
|
247,550 |
|
|
238,785 |
|
(2.1 |
) |
|
1.5 |
|
C&I loans |
|
|
188,557 |
|
|
147,508 |
|
|
112,160 |
|
27.8 |
|
|
68.1 |
|
Home mortgage loans |
|
|
506,873 |
|
|
502,995 |
|
|
516,226 |
|
0.8 |
|
|
(1.8 |
) |
Consumer & other loans |
|
|
997 |
|
|
1,400 |
|
|
1,163 |
|
(28.8 |
) |
|
(14.3 |
) |
Gross loans |
|
$ |
1,870,106 |
|
$ |
1,804,987 |
|
$ |
1,716,197 |
|
3.6 |
% |
|
9.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||
The following table presents new loan originations based on loan commitment amounts for the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
|||||
($ in thousands) |
|
For the Three Months Ended |
|
% Change 2Q2024 vs. |
|||||||||||
|
|
2Q2024 |
|
|
1Q2024 |
|
|
2Q2023 |
|
1Q2024 |
|
|
2Q2023 |
|
|
CRE loans |
|
$ |
41,990 |
|
$ |
44,595 |
|
$ |
29,976 |
|
(5.8 |
)% |
|
40.1 |
% |
SBA loans |
|
|
24,142 |
|
|
52,379 |
|
|
34,312 |
|
(53.9 |
) |
|
(29.6 |
) |
C&I loans |
|
|
21,271 |
|
|
22,124 |
|
|
25,650 |
|
(3.9 |
) |
|
(17.1 |
) |
Home mortgage loans |
|
|
13,720 |
|
|
2,478 |
|
|
22,788 |
|
453.7 |
|
|
(39.8 |
) |
Gross loans |
|
$ |
101,123 |
|
$ |
121,576 |
|
$ |
112,726 |
|
(16.8 |
)% |
|
(10.3 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|||||
The following table presents changes in gross loans by loan activity for the periods indicated:
|
|
|
|
|
|
|
||||||
($ in thousands) |
|
For the Three Months Ended |
||||||||||
|
|
2Q2024 |
|
|
|
1Q2024 |
|
|
|
2Q2023 |
|
|
Loan Activities: |
|
|
|
|
|
|
||||||
Gross loans, beginning |
|
$ |
1,804,987 |
|
|
$ |
1,765,845 |
|
|
$ |
1,692,485 |
|
New originations |
|
|
101,123 |
|
|
|
121,576 |
|
|
|
112,726 |
|
Net line advances |
|
|
43,488 |
|
|
|
16,965 |
|
|
|
(25,961 |
) |
Purchases |
|
|
— |
|
|
|
— |
|
|
|
6,359 |
|
Sales |
|
|
(32,102 |
) |
|
|
(32,106 |
) |
|
|
(36,791 |
) |
Paydowns |
|
|
(19,710 |
) |
|
|
(24,557 |
) |
|
|
(17,210 |
) |
Payoffs |
|
|
(36,902 |
) |
|
|
(28,539 |
) |
|
|
(25,969 |
) |
Decrease (increase) in loans held for sale |
|
|
9,590 |
|
|
|
(14,280 |
) |
|
|
7,534 |
|
Other |
|
|
(368 |
) |
|
|
83 |
|
|
|
3,024 |
|
Total |
|
|
65,119 |
|
|
|
39,142 |
|
|
|
23,712 |
|
Gross loans, ending |
|
$ |
1,870,106 |
|
|
$ |
1,804,987 |
|
|
$ |
1,716,197 |
|
|
|
|
|
|
|
|
||||||
As of June 30, 2024 vs. March 31, 2024
Gross loans were
As of June 30, 2024 vs. June 30, 2023
Gross loans were
The following table presents the composition of gross loans by interest rate type accompanied with the weighted average contractual rates as of the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
($ in thousands) |
|
As of |
||||||||||||||||
|
2Q2024 |
|
|
1Q2024 |
|
|
2Q2023 |
|
||||||||||
|
% |
|
Rate |
|
% |
|
Rate |
|
% |
|
Rate |
|||||||
Fixed rate |
|
36.2 |
% |
|
5.39 |
% |
|
35.1 |
% |
|
5.17 |
% |
|
36.2 |
% |
|
4.82 |
% |
Hybrid rate |
|
33.9 |
|
|
5.42 |
|
|
32.8 |
|
|
5.22 |
|
|
34.7 |
|
|
4.99 |
|
Variable rate |
|
29.9 |
|
|
9.19 |
|
|
32.1 |
|
|
9.16 |
|
|
29.1 |
|
|
9.05 |
|
Gross loans |
|
100.0 |
% |
|
6.54 |
% |
|
100.0 |
% |
|
6.47 |
% |
|
100.0 |
% |
|
6.11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
The following table presents the maturity of gross loans by interest rate type accompanied with the weighted average contractual rates for the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
($ in thousands) |
|
As of June 30, 2024 |
||||||||||||||||||||||
|
Within One Year |
|
One Year Through Five Years |
|
After Five Years |
|
Total |
|||||||||||||||||
|
Amount |
|
Rate |
|
Amount |
|
Rate |
|
Amount |
|
Rate |
|
Amount |
|
Rate |
|||||||||
Fixed rate |
|
$ |
155,421 |
|
6.17 |
% |
|
$ |
292,706 |
|
5.11 |
% |
|
$ |
229,174 |
|
5.21 |
% |
|
$ |
677,301 |
|
5.39 |
% |
Hybrid rate |
|
|
5,032 |
|
8.38 |
|
|
|
173,341 |
|
4.21 |
|
|
|
454,749 |
|
5.84 |
|
|
|
633,122 |
|
5.42 |
|
Variable rate |
|
|
93,103 |
|
9.03 |
|
|
|
128,778 |
|
9.04 |
|
|
|
337,802 |
|
9.29 |
|
|
|
559,683 |
|
9.19 |
|
Gross loans |
|
$ |
253,556 |
|
7.26 |
% |
|
$ |
594,825 |
|
5.70 |
% |
|
$ |
1,021,725 |
|
6.84 |
% |
|
$ |
1,870,106 |
|
6.54 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Allowance for Credit Losses
The following table presents allowance for credit losses and provision for credit losses as of and for the periods presented:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
($ in thousands) |
|
As of and For the Three Months Ended |
|
Change 2Q2024 vs. |
||||||||||||||||
|
|
2Q2024 |
|
|
|
1Q2024 |
|
|
|
2Q2023 |
|
|
|
1Q2024 |
|
|
|
2Q2023 |
|
|
Allowance for credit losses on loans, beginning |
|
$ |
22,129 |
|
|
$ |
21,993 |
|
|
$ |
20,814 |
|
|
$ |
136 |
|
|
$ |
1,315 |
|
Provision for credit losses |
|
|
627 |
|
|
|
193 |
|
|
|
— |
|
|
|
434 |
|
|
|
627 |
|
Gross charge-offs |
|
|
— |
|
|
|
(68 |
) |
|
|
(20 |
) |
|
|
68 |
|
|
|
20 |
|
Gross recoveries |
|
|
4 |
|
|
|
11 |
|
|
|
8 |
|
|
|
(7 |
) |
|
|
(4 |
) |
Net (charge-offs) recoveries |
|
|
4 |
|
|
|
(57 |
) |
|
|
(12 |
) |
|
|
61 |
|
|
|
16 |
|
Allowance for credit losses on loans, ending |
|
$ |
22,760 |
|
|
$ |
22,129 |
|
|
$ |
20,802 |
|
|
$ |
631 |
|
|
$ |
1,958 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for credit losses on off-balance sheet exposure, beginning |
|
$ |
468 |
|
|
$ |
516 |
|
|
$ |
367 |
|
|
$ |
(48 |
) |
|
$ |
101 |
|
Reversal of credit losses |
|
|
(10 |
) |
|
|
(48 |
) |
|
|
— |
|
|
|
38 |
|
|
|
(10 |
) |
Allowance for credit losses on off-balance sheet exposure, ending |
|
$ |
458 |
|
|
$ |
468 |
|
|
$ |
367 |
|
|
$ |
(10 |
) |
|
$ |
91 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Asset Quality
|
|
|
|
|
|
|
|
|
|
|
||||||||
($ in thousands) |
|
As of and For the Three Months Ended |
|
Change 2Q2024 vs. |
||||||||||||||
|
|
2Q2024 |
|
|
|
1Q2024 |
|
|
|
2Q2023 |
|
|
1Q2024 |
|
|
2Q2023 |
|
|
Loans 30-89 days past due and still accruing |
|
$ |
6,652 |
|
|
$ |
3,904 |
|
|
$ |
5,215 |
|
|
70.4 |
% |
|
27.6 |
% |
As a % of gross loans |
|
|
0.36 |
% |
|
|
0.22 |
% |
|
|
0.30 |
% |
|
0.14 |
|
|
0.06 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Nonperforming loans(1) |
|
$ |
4,389 |
|
|
$ |
4,343 |
|
|
$ |
3,447 |
|
|
1.1 |
% |
|
27.3 |
% |
Nonperforming assets(1) |
|
|
5,626 |
|
|
|
5,580 |
|
|
|
3,447 |
|
|
0.8 |
|
|
63.2 |
|
Nonperforming loans to gross loans |
|
|
0.23 |
% |
|
|
0.24 |
% |
|
|
0.20 |
% |
|
(0.01 |
) |
|
0.03 |
|
Nonperforming assets to total assets |
|
|
0.25 |
|
|
|
0.25 |
|
|
|
0.16 |
|
|
0.00 |
|
|
0.09 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Criticized loans(1)(2) |
|
$ |
16,428 |
|
|
$ |
11,564 |
|
|
$ |
7,538 |
|
|
42.1 |
% |
|
117.9 |
% |
Criticized loans to gross loans |
|
|
0.88 |
% |
|
|
0.64 |
% |
|
|
0.44 |
% |
|
0.24 |
|
|
0.44 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Allowance for credit losses ratios: |
|
|
|
|
|
|
|
|
|
|
||||||||
As a % of gross loans |
|
|
1.22 |
% |
|
|
1.23 |
% |
|
|
1.21 |
% |
|
(0.01 |
)% |
|
0.01 |
% |
As a % of nonperforming loans |
|
|
519 |
|
|
|
510 |
|
|
|
603 |
|
|
9 |
|
|
(84 |
) |
As a % of nonperforming assets |
|
|
405 |
|
|
|
397 |
|
|
|
603 |
|
|
8 |
|
|
(198 |
) |
As a % of criticized loans |
|
|
139 |
|
|
|
191 |
|
|
|
276 |
|
|
(52 |
) |
|
(137 |
) |
Net charge-offs (recoveries)(3) to average gross loans(4) |
|
|
(0.00 |
) |
|
|
0.01 |
|
|
|
0.00 |
|
|
(0.01 |
) |
|
(0.00 |
) |
|
|
|
|
|
|
|
|
|
|
|
||||||||
(1) |
Excludes the guaranteed portion of SBA loans that are in liquidation totaling |
(2) |
Consists of special mention, substandard, doubtful and loss categories. |
(3) |
Annualized. |
(4) |
Includes loans held for sale. |
Overall, the Bank continued to maintain low levels of nonperforming loans and net charge-offs. Our allowance remained strong with an allowance to gross loans ratio of
-
Loans 30-89 days past due and still accruing were
$6.7 million 0.36% of gross loans as of June 30, 2024, compared with$3.9 million 0.22% as of March 31, 2024. The increase was due to two home mortgage loans totaling$2.2 million $0.9 million
-
Nonperforming loans were
$4.4 million 0.23% of gross loans as of June 30, 2024, compared with$4.3 million 0.24% as of March 31, 2024.
-
Nonperforming assets were
$5.6 million 0.25% of total assets as of June 30, 2024, compared with$5.6 million 0.25% as of March 31, 2024. OREO was$1.2 million 90% guaranteed by SBA.
-
Criticized loans were
$16.4 million 0.88% of gross loans as of June 30, 2024, compared with$11.6 million 0.64% as of March 31, 2024. The increase was due to three Special Mention downgrades totaling$2.1 million $3.2 million
-
Net recoveries were
$4 thousand 0.00% of average loans in the second quarter of 2024, compared to net charge-offs of$57 thousand 0.01% of average loans in the first quarter of 2024 and of$12 thousand 0.00% of average loans in the second quarter of 2023.
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
($ in thousands) |
|
As of |
|
% Change 2Q2024 vs. |
||||||||||||||||||||
|
|
2Q2024 |
|
|
|
1Q2024 |
|
|
|
2Q2023 |
|
|
||||||||||||
|
Amount |
|
% |
|
Amount |
|
% |
|
Amount |
|
% |
|
1Q2024 |
|
|
2Q2023 |
|
|||||||
Noninterest-bearing deposits |
|
$ |
518,456 |
|
26.7 |
% |
|
$ |
539,396 |
|
28.5 |
% |
|
$ |
634,745 |
|
34.1 |
% |
|
(3.9 |
)% |
|
(18.3 |
)% |
Money market deposits and others |
|
|
332,137 |
|
17.1 |
|
|
|
327,718 |
|
17.3 |
|
|
|
344,162 |
|
18.5 |
|
|
1.3 |
|
|
(3.5 |
) |
Time deposits |
|
|
1,090,228 |
|
56.2 |
|
|
|
1,028,297 |
|
54.2 |
|
|
|
880,732 |
|
47.4 |
|
|
6.0 |
|
|
23.8 |
|
Total deposits |
|
$ |
1,940,821 |
|
100.0 |
% |
|
$ |
1,895,411 |
|
100.0 |
% |
|
$ |
1,859,639 |
|
100.0 |
% |
|
2.4 |
% |
|
4.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Estimated uninsured deposits |
|
$ |
860,419 |
|
44.3 |
% |
|
$ |
805,523 |
|
42.5 |
% |
|
$ |
805,070 |
|
43.3 |
% |
|
6.8 |
% |
|
6.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
As of June 30, 2024 vs. March 31, 2024
Total deposits were
As of June 30, 2024 vs. June 30, 2023
Total deposits were
The following table sets forth the maturity of time deposits as of June 30, 2024:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
As of June 30, 2024 |
||||||||||||||||||||||
($ in thousands) |
|
Within Three Months |
|
Three to Six Months |
|
Six to Nine Months |
|
Nine to Twelve Months |
|
After Twelve Months |
|
Total |
||||||||||||
Time deposits (greater than |
|
$ |
96,968 |
|
|
$ |
201,334 |
|
|
$ |
145,549 |
|
|
$ |
85,958 |
|
|
$ |
4,048 |
|
|
$ |
533,857 |
|
Time deposits ( |
|
|
155,311 |
|
|
|
188,367 |
|
|
|
102,834 |
|
|
|
77,680 |
|
|
|
32,179 |
|
|
|
556,371 |
|
Total time deposits |
|
$ |
252,279 |
|
|
$ |
389,701 |
|
|
$ |
248,383 |
|
|
$ |
163,638 |
|
|
$ |
36,227 |
|
|
$ |
1,090,228 |
|
Weighted average rate |
|
|
5.09 |
% |
|
|
5.18 |
% |
|
|
5.07 |
% |
|
|
5.16 |
% |
|
|
4.17 |
% |
|
|
5.10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
OTHER HIGHLIGHTS
Liquidity
The Company maintains ample access to liquidity, including highly liquid assets on our balance sheet and available unused borrowings from other financial institutions. The following table presents the Company's liquid assets and available borrowings as of dates presented:
|
|
|
|
|
||||||||
($ in thousands) |
|
|
2Q2024 |
|
|
|
1Q2024 |
|
|
|
2Q2023 |
|
Liquidity Assets: |
|
|
|
|
|
|
||||||
Cash and cash equivalents |
|
$ |
127,676 |
|
|
$ |
139,246 |
|
|
$ |
143,761 |
|
Available-for-sale debt securities |
|
|
199,205 |
|
|
|
187,225 |
|
|
|
202,250 |
|
Liquid assets |
|
$ |
326,881 |
|
|
$ |
326,471 |
|
|
$ |
346,011 |
|
Liquid assets to total assets |
|
|
14.3 |
% |
|
|
14.6 |
% |
|
|
16.1 |
% |
|
|
|
|
|
|
|
||||||
Available borrowings: |
|
|
|
|
|
|
||||||
Federal Home Loan Bank—San Francisco |
|
$ |
343,600 |
|
|
$ |
331,917 |
|
|
$ |
400,543 |
|
Federal Reserve Bank |
|
|
191,421 |
|
|
|
185,913 |
|
|
|
172,316 |
|
Pacific Coast Bankers Bank |
|
|
50,000 |
|
|
|
50,000 |
|
|
|
50,000 |
|
Zions Bank |
|
|
25,000 |
|
|
|
25,000 |
|
|
|
25,000 |
|
First Horizon Bank |
|
|
25,000 |
|
|
|
25,000 |
|
|
|
25,000 |
|
Total available borrowings |
|
$ |
635,021 |
|
|
$ |
617,830 |
|
|
$ |
672,859 |
|
Total available borrowings to total assets |
|
|
27.7 |
% |
|
|
27.6 |
% |
|
|
31.3 |
% |
|
|
|
|
|
|
|
||||||
Liquid assets and available borrowings to total deposits |
|
|
49.6 |
% |
|
|
49.8 |
% |
|
|
54.8 |
% |
|
|
|
|
|
||||||||
Capital and Capital Ratios
On July 25, 2024, the Company’s Board of Directors declared a quarterly cash dividend of
The Company also repurchased 224,321 shares of its common stock at an average price of
|
|
|
|
|
|
|
|
|
||||
|
|
OP Bancorp(1) |
|
Open Bank |
|
Minimum Well Capitalized Ratio |
|
Minimum Capital Ratio+ Conservation Buffer(2) |
||||
Risk-Based Capital Ratios: |
|
|
|
|
|
|
|
|
||||
Total risk-based capital ratio |
|
13.26 |
% |
|
13.24 |
% |
|
10.00 |
% |
|
10.50 |
% |
Tier 1 risk-based capital ratio |
|
12.01 |
|
|
11.99 |
|
|
8.00 |
|
|
8.50 |
|
Common equity tier 1 ratio |
|
12.01 |
|
|
11.99 |
|
|
6.50 |
|
|
7.00 |
|
Leverage ratio |
|
9.28 |
|
|
9.27 |
|
|
5.00 |
|
|
4.00 |
|
|
|
|
|
|
|
|
|
|
||||
| (1) | The capital requirements are only applicable to the Bank, and the Company's ratios are included for comparison purpose. |
|
| (2) |
An additional |
|
|
|
|
|
|
|
|
|
|
|
||||||||
OP Bancorp |
|
|
|
|
|
|
|
Change 2Q2024 vs. |
||||||||||
|
|
2Q2024 |
|
|
|
1Q2024 |
|
|
|
2Q2023 |
|
|
1Q2024 |
|
|
2Q2023 |
|
|
Risk-Based Capital Ratios: |
|
|
|
|
|
|
|
|
|
|
||||||||
Total risk-based capital ratio |
|
|
13.26 |
% |
|
|
13.59 |
% |
|
|
13.10 |
% |
|
(0.33 |
)% |
|
0.16 |
% |
Tier 1 risk-based capital ratio |
|
|
12.01 |
|
|
|
12.34 |
|
|
|
11.92 |
|
|
(0.33 |
) |
|
0.09 |
|
Common equity tier 1 ratio |
|
|
12.01 |
|
|
|
12.34 |
|
|
|
11.92 |
|
|
(0.33 |
) |
|
0.09 |
|
Leverage ratio |
|
|
9.28 |
|
|
|
9.65 |
|
|
|
9.50 |
|
|
(0.37 |
) |
|
(0.22 |
) |
Risk-weighted Assets ($ in thousands) |
|
$ |
1,776,771 |
|
|
$ |
1,715,186 |
|
|
$ |
1,700,205 |
|
|
3.59 |
|
|
4.50 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
ABOUT OP BANCORP
OP Bancorp, the holding company for Open Bank (the “Bank”), is a
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain matters set forth herein constitute “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, 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 effects of substantial fluctuations in, and continuing elevated levels of, interest rates on our borrowers’ ability to perform in accordance with the terms of their loans and on our deposit customers’ expectation for higher rates on deposit products; cybersecurity risks, including the potential for the occurrence of successful cyberattacks and our ability to prevent and to mitigate the harms resulting from any such attacks; infrastructure risks and similar circumstances that affect our and our customers’ ability to communicate and to engage in routine online banking activities; business and economic conditions, particularly those affecting the financial services industry and our primary market areas; risks of international conflict, terrorism, civil unrest and domestic instability; the continuing effects of inflation and monetary policies, particularly those relating to the decisions and indicators of intent expressed by the Federal Reserve Open Markets Committee, as those circumstances impact our operations and our current and prospective borrowers and depositors; our ability to balance deposit liabilities and liquidity sources (including our ability to reprice those instruments and balancing our borrowings and investments to keep pace with changing market conditions) so as to meet current and expected withdrawals while promoting strong earning capacity; our ability to manage our credit risk successfully and to assess, adjust and monitor the sufficiency of our allowance for credit 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; the impacts of credit quality on our earnings and the related effects of increases to the reserve on our net income; our ability effectively to execute our strategic plan and manage our growth; interest rate fluctuations, which could have an adverse effect on our profitability; external economic and/or market factors, such as changes in monetary and fiscal policies and laws, including 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 banks and from credit unions and non-bank financial services companies, many of which are subject to less restrictive or less costly regulations than we are; challenges arising from unsuccessful attempts to expand into new geographic markets, products, or services; practical and regulatory constraints on the ability of Open Bank to pay dividends to us; 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; including internal controls that affect the reliability of our publicly reported financial statements; inaccuracies in our assumptions about future events, which could result in material differences between our financial projections and actual financial performance, particularly with respect to the effects of predictions of future economic conditions as those circumstances affect our estimates for the adequacy of our allowance for credit losses and the related provision expense; 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, 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, 2023 and in our subsequent filings with the Securities and Exchange Commission.
CONSOLIDATED BALANCE SHEETS (unaudited)
|
|
|
|
|
|
|
|
|
|
|
||||||||
($ in thousands) |
|
As of |
|
% Change 2Q2024 vs. |
||||||||||||||
|
|
2Q2024 |
|
|
|
1Q2024 |
|
|
|
2Q2023 |
|
|
1Q2024 |
|
|
2Q2023 |
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and due from banks |
|
$ |
21,771 |
|
|
$ |
20,513 |
|
|
$ |
21,295 |
|
|
6.1 |
% |
|
2.2 |
% |
Interest-bearing deposits in other banks |
|
|
105,905 |
|
|
|
118,733 |
|
|
|
122,466 |
|
|
(10.8 |
) |
|
(13.5 |
) |
Cash and cash equivalents |
|
|
127,676 |
|
|
|
139,246 |
|
|
|
143,761 |
|
|
(8.3 |
) |
|
(11.2 |
) |
Available-for-sale debt securities, at fair value |
|
|
199,205 |
|
|
|
187,225 |
|
|
|
202,250 |
|
|
6.4 |
|
|
(1.5 |
) |
Other investments |
|
|
16,367 |
|
|
|
16,264 |
|
|
|
16,183 |
|
|
0.6 |
|
|
1.1 |
|
Loans held for sale |
|
|
6,485 |
|
|
|
16,075 |
|
|
|
— |
|
|
(59.7 |
) |
|
n/m |
|
CRE loans |
|
|
931,284 |
|
|
|
905,534 |
|
|
|
847,863 |
|
|
2.8 |
|
|
9.8 |
|
SBA loans |
|
|
242,395 |
|
|
|
247,550 |
|
|
|
238,785 |
|
|
(2.1 |
) |
|
1.5 |
|
C&I loans |
|
|
188,557 |
|
|
|
147,508 |
|
|
|
112,160 |
|
|
27.8 |
|
|
68.1 |
|
Home mortgage loans |
|
|
506,873 |
|
|
|
502,995 |
|
|
|
516,226 |
|
|
0.8 |
|
|
(1.8 |
) |
Consumer loans |
|
|
997 |
|
|
|
1,400 |
|
|
|
1,163 |
|
|
(28.8 |
) |
|
(14.3 |
) |
Gross loans receivable |
|
|
1,870,106 |
|
|
|
1,804,987 |
|
|
|
1,716,197 |
|
|
3.6 |
|
|
9.0 |
|
Allowance for credit losses |
|
|
(22,760 |
) |
|
|
(22,129 |
) |
|
|
(20,802 |
) |
|
2.9 |
|
|
9.4 |
|
Net loans receivable |
|
|
1,847,346 |
|
|
|
1,782,858 |
|
|
|
1,695,395 |
|
|
3.6 |
|
|
9.0 |
|
Premises and equipment, net |
|
|
4,716 |
|
|
|
4,971 |
|
|
|
5,093 |
|
|
(5.1 |
) |
|
(7.4 |
) |
Accrued interest receivable, net |
|
|
8,555 |
|
|
|
8,370 |
|
|
|
7,703 |
|
|
2.2 |
|
|
11.1 |
|
Servicing assets |
|
|
11,043 |
|
|
|
11,405 |
|
|
|
12,654 |
|
|
(3.2 |
) |
|
(12.7 |
) |
Company owned life insurance |
|
|
22,566 |
|
|
|
22,399 |
|
|
|
21,913 |
|
|
0.7 |
|
|
3.0 |
|
Deferred tax assets, net |
|
|
14,117 |
|
|
|
13,802 |
|
|
|
13,360 |
|
|
2.3 |
|
|
5.7 |
|
Other real estate owned |
|
|
1,237 |
|
|
|
1,237 |
|
|
|
— |
|
|
— |
|
|
n/m |
|
Operating right-of-use assets |
|
|
8,348 |
|
|
|
8,864 |
|
|
|
9,487 |
|
|
(5.8 |
) |
|
(12.0 |
) |
Other assets |
|
|
23,019 |
|
|
|
21,804 |
|
|
|
23,902 |
|
|
5.6 |
|
|
(3.7 |
) |
Total assets |
|
$ |
2,290,680 |
|
|
$ |
2,234,520 |
|
|
$ |
2,151,701 |
|
|
2.5 |
% |
|
6.5 |
% |
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities: |
|
|
|
|
|
|
|
|
|
|
||||||||
Noninterest-bearing |
|
$ |
518,456 |
|
|
$ |
539,396 |
|
|
$ |
634,745 |
|
|
(3.9 |
)% |
|
(18.3 |
)% |
Money market and others |
|
|
332,137 |
|
|
|
327,718 |
|
|
|
344,162 |
|
|
1.3 |
|
|
(3.5 |
) |
Time deposits greater than |
|
|
533,857 |
|
|
|
451,497 |
|
|
|
416,208 |
|
|
18.2 |
|
|
28.3 |
|
Other time deposits |
|
|
556,371 |
|
|
|
576,800 |
|
|
|
464,524 |
|
|
(3.5 |
) |
|
19.8 |
|
Total deposits |
|
|
1,940,821 |
|
|
|
1,895,411 |
|
|
|
1,859,639 |
|
|
2.4 |
|
|
4.4 |
|
Federal Home Loan Bank advances |
|
|
115,000 |
|
|
|
105,000 |
|
|
|
75,000 |
|
|
9.5 |
|
|
53.3 |
|
Accrued interest payable |
|
|
15,504 |
|
|
|
12,270 |
|
|
|
9,354 |
|
|
26.4 |
|
|
65.7 |
|
Operating lease liabilities |
|
|
9,000 |
|
|
|
9,614 |
|
|
|
10,486 |
|
|
(6.4 |
) |
|
(14.2 |
) |
Other liabilities |
|
|
14,449 |
|
|
|
17,500 |
|
|
|
13,452 |
|
|
(17.4 |
) |
|
7.4 |
|
Total liabilities |
|
|
2,094,774 |
|
|
|
2,039,795 |
|
|
|
1,967,931 |
|
|
2.7 |
|
|
6.4 |
|
Shareholders' equity: |
|
|
|
|
|
|
|
|
|
|
||||||||
Common stock |
|
|
73,749 |
|
|
|
75,957 |
|
|
|
77,464 |
|
|
(2.9 |
) |
|
(4.8 |
) |
Additional paid-in capital |
|
|
11,441 |
|
|
|
11,240 |
|
|
|
10,297 |
|
|
1.8 |
|
|
11.1 |
|
Retained earnings |
|
|
127,929 |
|
|
|
124,280 |
|
|
|
114,177 |
|
|
2.9 |
|
|
12.0 |
|
Accumulated other comprehensive loss |
|
|
(17,213 |
) |
|
|
(16,752 |
) |
|
|
(18,168 |
) |
|
2.8 |
|
|
(5.3 |
) |
Total shareholders’ equity |
|
|
195,906 |
|
|
|
194,725 |
|
|
|
183,770 |
|
|
0.6 |
|
|
6.6 |
|
Total liabilities and shareholders' equity |
|
$ |
2,290,680 |
|
|
$ |
2,234,520 |
|
|
$ |
2,151,701 |
|
|
2.5 |
% |
|
6.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|||||
($ in thousands, except share and per share data) |
|
For the Three Months Ended |
|
% Change 2Q2024 vs. |
|||||||||||
|
|
2Q2024 |
|
|
1Q2024 |
|
|
2Q2023 |
|
1Q2024 |
|
|
2Q2023 |
|
|
Interest income |
|
|
|
|
|
|
|
|
|
|
|||||
Interest and fees on loans |
|
$ |
30,605 |
|
$ |
30,142 |
|
$ |
27,288 |
|
1.5 |
% |
|
12.2 |
% |
Interest on available-for-sale debt securities |
|
|
1,590 |
|
|
1,460 |
|
|
1,562 |
|
8.9 |
|
|
1.8 |
|
Other interest income |
|
|
2,162 |
|
|
1,311 |
|
|
1,252 |
|
64.9 |
|
|
72.7 |
|
Total interest income |
|
|
34,357 |
|
|
32,913 |
|
|
30,102 |
|
4.4 |
|
|
14.1 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|||||
Interest on deposits |
|
|
17,343 |
|
|
15,675 |
|
|
11,920 |
|
10.6 |
|
|
45.5 |
|
Interest on borrowings |
|
|
820 |
|
|
1,259 |
|
|
930 |
|
(34.9 |
) |
|
(11.8 |
)% |
Total interest expense |
|
|
18,163 |
|
|
16,934 |
|
|
12,850 |
|
7.3 |
|
|
41.3 |
|
Net interest income |
|
|
16,194 |
|
|
15,979 |
|
|
17,252 |
|
1.3 |
|
|
(6.1 |
) |
Provision for credit losses |
|
|
617 |
|
|
145 |
|
|
— |
|
325.5 |
|
|
n/m |
|
Net interest income after provision for credit losses |
|
|
15,577 |
|
|
15,834 |
|
|
17,252 |
|
(1.6 |
) |
|
(9.7 |
) |
Noninterest income |
|
|
|
|
|
|
|
|
|
|
|||||
Service charges on deposits |
|
|
793 |
|
|
612 |
|
|
573 |
|
29.6 |
|
|
38.4 |
|
Loan servicing fees, net of amortization |
|
|
575 |
|
|
772 |
|
|
595 |
|
(25.5 |
) |
|
(3.4 |
) |
Gain on sale of loans |
|
|
2,325 |
|
|
1,703 |
|
|
2,098 |
|
36.5 |
|
|
10.8 |
|
Other income |
|
|
491 |
|
|
499 |
|
|
339 |
|
(1.6 |
) |
|
44.8 |
|
Total noninterest income |
|
|
4,184 |
|
|
3,586 |
|
|
3,605 |
|
16.7 |
|
|
16.1 |
|
Noninterest expense |
|
|
|
|
|
|
|
|
|
|
|||||
Salaries and employee benefits |
|
|
7,568 |
|
|
7,841 |
|
|
7,681 |
|
(3.5 |
) |
|
(1.5 |
) |
Occupancy and equipment |
|
|
1,660 |
|
|
1,655 |
|
|
1,598 |
|
0.3 |
|
|
3.9 |
|
Data processing and communication |
|
|
530 |
|
|
487 |
|
|
546 |
|
8.8 |
|
|
(2.9 |
) |
Professional fees |
|
|
406 |
|
|
395 |
|
|
381 |
|
2.8 |
|
|
6.6 |
|
FDIC insurance and regulatory assessments |
|
|
378 |
|
|
374 |
|
|
420 |
|
1.1 |
|
|
(10.0 |
) |
Promotion and advertising |
|
|
151 |
|
|
149 |
|
|
159 |
|
1.3 |
|
|
(5.0 |
) |
Directors’ fees |
|
|
178 |
|
|
157 |
|
|
210 |
|
13.4 |
|
|
(15.2 |
) |
Foundation donation and other contributions |
|
|
539 |
|
|
540 |
|
|
594 |
|
(0.2 |
) |
|
(9.3 |
) |
Other expenses |
|
|
779 |
|
|
559 |
|
|
711 |
|
39.4 |
|
|
9.6 |
|
Total noninterest expense |
|
|
12,189 |
|
|
12,157 |
|
|
12,300 |
|
0.3 |
|
|
(0.9 |
) |
Income before income tax expense |
|
|
7,572 |
|
|
7,263 |
|
|
8,557 |
|
4.3 |
|
|
(11.5 |
) |
Income tax expense |
|
|
2,136 |
|
|
2,037 |
|
|
2,466 |
|
4.9 |
|
|
(13.4 |
) |
Net income |
|
$ |
5,436 |
|
$ |
5,226 |
|
$ |
6,091 |
|
4.0 |
% |
|
(10.8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|||||
Book value per share |
|
$ |
13.22 |
|
$ |
13.00 |
|
$ |
12.16 |
|
1.7 |
% |
|
8.7 |
% |
Earnings per share - basic |
|
|
0.36 |
|
|
0.34 |
|
|
0.39 |
|
5.9 |
|
|
(7.7 |
) |
Earnings per share - diluted |
|
|
0.36 |
|
|
0.34 |
|
|
0.39 |
|
5.9 |
|
|
(7.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|||||
Shares of common stock outstanding, at period end |
|
|
14,816,281 |
|
|
14,982,555 |
|
|
15,118,268 |
|
(1.1 |
)% |
|
(2.0 |
)% |
Weighted average shares: |
|
|
|
|
|
|
|
|
|
|
|||||
- Basic |
|
|
14,868,344 |
|
|
14,991,835 |
|
|
15,158,365 |
|
(0.8 |
)% |
|
(1.9 |
)% |
- Diluted |
|
|
14,868,344 |
|
|
14,991,835 |
|
|
15,169,794 |
|
(0.8 |
) |
|
(2.0 |
) |
|
|
|
|
|
|
|
|
|
|
|
|||||
KEY RATIOS
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
For the Three Months Ended |
|
% Change 2Q2024 vs. |
|||||||||||
|
2Q2024 |
|
|
1Q2024 |
|
|
2Q2023 |
|
|
1Q2024 |
|
|
2Q2023 |
|
|
Return on average assets (ROA)(1) |
|
0.95 |
% |
|
0.96 |
% |
|
1.15 |
% |
|
— |
% |
|
(0.2 |
)% |
Return on average equity (ROE)(1) |
|
11.23 |
|
|
10.83 |
|
|
13.27 |
|
|
0.4 |
|
|
(2.0 |
) |
Net interest margin(1) |
|
2.96 |
|
|
3.06 |
|
|
3.40 |
|
|
(0.1 |
) |
|
(0.4 |
) |
Efficiency ratio |
|
59.81 |
|
|
62.14 |
|
|
58.97 |
|
|
(2.3 |
) |
|
0.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total risk-based capital ratio |
|
13.26 |
% |
|
13.59 |
% |
|
13.10 |
% |
|
(0.3 |
)% |
|
0.2 |
% |
Tier 1 risk-based capital ratio |
|
12.01 |
|
|
12.34 |
|
|
11.92 |
|
|
(0.3 |
) |
|
0.1 |
|
Common equity tier 1 ratio |
|
12.01 |
|
|
12.34 |
|
|
11.92 |
|
|
(0.3 |
) |
|
0.1 |
|
Leverage ratio |
|
9.28 |
|
|
9.65 |
|
|
9.50 |
|
|
(0.4 |
) |
|
(0.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|||||
| (1) | Annualized. |
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
|
|
|
|
|
|
|
||||
($ in thousands, except share and per share data) |
|
For the Six Months Ended |
|
|
||||||
|
|
2Q2024 |
|
|
2Q2023 |
|
|
% Change |
||
Interest income |
|
|
|
|
|
|
||||
Interest and fees on loans |
|
$ |
60,747 |
|
$ |
53,299 |
|
|
14.0 |
% |
Interest on available-for-sale debt securities |
|
|
3,050 |
|
|
3,128 |
|
|
(2.5 |
) |
Other interest income |
|
|
3,473 |
|
|
2,269 |
|
|
53.1 |
|
Total interest income |
|
|
67,270 |
|
|
58,696 |
|
|
14.6 |
|
Interest expense |
|
|
|
|
|
|
||||
Interest on deposits |
|
|
33,018 |
|
|
22,302 |
|
|
48.0 |
|
Interest on borrowings |
|
|
2,079 |
|
|
1,250 |
|
|
66.3 |
|
Total interest expense |
|
|
35,097 |
|
|
23,552 |
|
|
49.0 |
|
Net interest income |
|
|
32,173 |
|
|
35,144 |
|
|
(8.5 |
) |
Provision for (reversal of) credit losses |
|
|
762 |
|
|
(338 |
) |
|
n/m |
|
Net interest income after provision for credit losses |
|
|
31,411 |
|
|
35,482 |
|
|
(11.5 |
) |
Noninterest income |
|
|
|
|
|
|
||||
Service charges on deposits |
|
|
1,405 |
|
|
991 |
|
|
41.8 |
% |
Loan servicing fees, net of amortization |
|
|
1,347 |
|
|
1,441 |
|
|
(6.5 |
) |
Gain on sale of loans |
|
|
4,028 |
|
|
4,668 |
|
|
(13.7 |
) |
Other income |
|
|
990 |
|
|
800 |
|
|
23.8 |
|
Total noninterest income |
|
|
7,770 |
|
|
7,900 |
|
|
(1.6 |
) |
Noninterest expense |
|
|
|
|
|
|
||||
Salaries and employee benefits |
|
|
15,409 |
|
|
14,933 |
|
|
3.2 |
|
Occupancy and equipment |
|
|
3,315 |
|
|
3,168 |
|
|
4.6 |
|
Data processing and communication |
|
|
1,017 |
|
|
1,096 |
|
|
(7.2 |
) |
Professional fees |
|
|
801 |
|
|
740 |
|
|
8.2 |
|
FDIC insurance and regulatory assessments |
|
|
752 |
|
|
887 |
|
|
(15.2 |
) |
Promotion and advertising |
|
|
300 |
|
|
321 |
|
|
(6.5 |
) |
Directors’ fees |
|
|
335 |
|
|
371 |
|
|
(9.7 |
) |
Foundation donation and other contributions |
|
|
1,079 |
|
|
1,347 |
|
|
(19.9 |
) |
Other expenses |
|
|
1,338 |
|
|
1,345 |
|
|
(0.5 |
) |
Total noninterest expense |
|
|
24,346 |
|
|
24,208 |
|
|
0.6 |
|
Income before income tax expense |
|
|
14,835 |
|
|
19,174 |
|
|
(22.6 |
) |
Income tax expense |
|
|
4,173 |
|
|
5,549 |
|
|
(24.8 |
) |
Net income |
|
$ |
10,662 |
|
$ |
13,625 |
|
|
(21.7 |
)% |
|
|
|
|
|
|
|
||||
Book value per share |
|
$ |
13.22 |
|
$ |
12.16 |
|
|
8.7 |
% |
Earnings per share - basic |
|
|
0.70 |
|
|
0.88 |
|
|
(20.5 |
) |
Earnings per share - diluted |
|
|
0.70 |
|
|
0.88 |
|
|
(20.5 |
) |
|
|
|
|
|
|
|
||||
Shares of common stock outstanding, at period end |
|
|
14,816,281 |
|
|
15,118,268 |
|
|
(2.0 |
)% |
Weighted average shares: |
|
|
|
|
|
|
||||
- Basic |
|
|
14,930,090 |
|
|
15,221,010 |
|
|
(1.9 |
)% |
- Diluted |
|
|
14,930,090 |
|
|
15,241,903 |
|
|
(2.0 |
) |
|
|
|
|
|
|
|
||||
KEY RATIOS
|
|
|
|
|
|
|
|||
|
|
For the Six Months Ended |
|
|
|||||
|
2Q2024 |
|
|
2Q2023 |
|
|
% Change |
||
Return on average assets (ROA)(1) |
|
0.96 |
% |
|
1.29 |
% |
|
(0.3 |
)% |
Return on average equity (ROE)(1) |
|
11.03 |
|
|
15.02 |
|
|
(4.0 |
) |
Net interest margin(1) |
|
3.01 |
|
|
3.48 |
|
|
(0.5 |
) |
Efficiency ratio |
|
60.95 |
|
|
56.24 |
|
|
4.7 |
|
|
|
|
|
|
|
|
|||
Total risk-based capital ratio |
|
13.26 |
% |
|
13.10 |
% |
|
0.2 |
% |
Tier 1 risk-based capital ratio |
|
12.01 |
|
|
11.92 |
|
|
0.1 |
|
Common equity tier 1 ratio |
|
12.01 |
|
|
11.92 |
|
|
0.1 |
|
Leverage ratio |
|
9.28 |
|
|
9.50 |
|
|
(0.2 |
) |
|
|
|
|
|
|
|
|||
(1) |
Annualized. |
ASSET QUALITY
|
|
|
|
|
|
|
||||||
($ in thousands) |
|
As of and For the Three Months Ended |
||||||||||
|
|
2Q2024 |
|
|
|
1Q2024 |
|
|
|
2Q2023 |
|
|
Nonaccrual loans(1) |
|
$ |
4,389 |
|
|
$ |
4,343 |
|
|
$ |
3,447 |
|
Loans 90 days or more past due, accruing(2) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Nonperforming loans |
|
|
4,389 |
|
|
|
4,343 |
|
|
|
3,447 |
|
OREO |
|
|
1,237 |
|
|
|
1,237 |
|
|
|
— |
|
Nonperforming assets |
|
$ |
5,626 |
|
|
$ |
5,580 |
|
|
$ |
3,447 |
|
|
|
|
|
|
|
|
||||||
Criticized loans by risk categories: |
|
|
|
|
|
|
||||||
Special mention loans |
|
$ |
3,339 |
|
|
$ |
1,415 |
|
|
$ |
2,909 |
|
Classified loans(1)(3) |
|
|
13,089 |
|
|
|
10,149 |
|
|
|
4,629 |
|
Total criticized loans |
|
$ |
16,428 |
|
|
$ |
11,564 |
|
|
$ |
7,538 |
|
|
|
|
|
|
|
|
||||||
Criticized loans by loan type: |
|
|
|
|
|
|
||||||
CRE loans |
|
$ |
5,896 |
|
|
$ |
5,292 |
|
|
$ |
— |
|
SBA loans |
|
|
9,771 |
|
|
|
6,055 |
|
|
|
4,784 |
|
C&I loans |
|
|
550 |
|
|
|
— |
|
|
|
200 |
|
Home mortgage loans |
|
|
211 |
|
|
|
217 |
|
|
|
2,554 |
|
Total criticized loans |
|
$ |
16,428 |
|
|
$ |
11,564 |
|
|
$ |
7,538 |
|
|
|
|
|
|
|
|
||||||
Nonperforming loans / gross loans |
|
|
0.23 |
% |
|
|
0.24 |
% |
|
|
0.20 |
% |
Nonperforming assets / gross loans plus OREO |
|
|
0.30 |
|
|
|
0.31 |
|
|
|
0.20 |
|
Nonperforming assets / total assets |
|
|
0.25 |
|
|
|
0.25 |
|
|
|
0.16 |
|
Classified loans / gross loans |
|
|
0.70 |
|
|
|
0.56 |
|
|
|
0.27 |
|
Criticized loans / gross loans |
|
|
0.88 |
|
|
|
0.64 |
|
|
|
0.44 |
|
|
|
|
|
|
|
|
||||||
Allowance for credit losses ratios: |
|
|
|
|
|
|
||||||
As a % of gross loans |
|
|
1.22 |
% |
|
|
1.23 |
% |
|
|
1.21 |
% |
As a % of nonperforming loans |
|
|
519 |
|
|
|
510 |
|
|
|
603 |
|
As a % of nonperforming assets |
|
|
405 |
|
|
|
397 |
|
|
|
603 |
|
As a % of classified loans |
|
|
174 |
|
|
|
218 |
|
|
|
449 |
|
As a % of criticized loans |
|
|
139 |
|
|
|
191 |
|
|
|
276 |
|
|
|
|
|
|
|
|
||||||
Net charge-offs (recoveries) |
|
$ |
(4 |
) |
|
$ |
57 |
|
|
$ |
12 |
|
Net charge-offs (recoveries)(4) to average gross loans(5) |
|
|
(0.00 |
)% |
|
|
0.01 |
% |
|
|
0.00 |
% |
|
|
|
|
|
|
|
||||||
(1) |
|
Excludes the guaranteed portion of SBA loans that are in liquidation totaling |
(2) |
|
Excludes the guaranteed portion of SBA loans that are in liquidation totaling |
(3) |
|
Consists of substandard, doubtful and loss categories. |
(4) |
|
Annualized. |
(5) |
|
Includes loans held for sale. |
|
|
|
|
|
|
||||
($ in thousands) |
|
|
2Q2024 |
|
|
1Q2024 |
|
|
2Q2023 |
Accruing delinquent loans 30-89 days past due |
|
|
|
|
|
|
|||
30-59 days |
|
$ |
3,774 |
|
$ |
801 |
|
$ |
3,647 |
60-89 days |
|
|
2,878 |
|
|
3,103 |
|
|
1,568 |
Total |
|
$ |
6,652 |
|
$ |
3,904 |
|
$ |
5,215 |
|
|
|
|
|
|
|
|||
AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
For the Three Months Ended |
|||||||||||||||||||||||||
|
|
2Q2024 |
|
|
1Q2024 |
|
|
2Q2023 |
|
||||||||||||||||||
($ in thousands) |
|
Average Balance |
|
Interest and Fees |
|
Yield/ Rate(1) |
|
Average Balance |
|
Interest and Fees |
|
Yield/ Rate(1) |
|
Average Balance |
|
Interest and Fees |
|
Yield/ Rate(1) |
|||||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest-bearing deposits in other banks |
|
$ |
135,984 |
|
$ |
1,847 |
|
5.37 |
% |
|
$ |
73,047 |
|
$ |
989 |
|
5.35 |
% |
|
$ |
79,200 |
|
$ |
1,003 |
|
5.01 |
% |
Federal funds sold and other investments |
|
|
16,307 |
|
|
315 |
|
7.72 |
|
|
|
16,265 |
|
|
322 |
|
7.92 |
|
|
|
15,374 |
|
|
249 |
|
6.46 |
|
Available-for-sale debt securities, at fair value |
|
|
195,512 |
|
|
1,590 |
|
3.25 |
|
|
|
191,383 |
|
|
1,460 |
|
3.05 |
|
|
|
209,801 |
|
|
1,562 |
|
2.98 |
|
CRE loans |
|
|
908,073 |
|
|
13,742 |
|
6.09 |
|
|
|
901,262 |
|
|
13,729 |
|
6.13 |
|
|
|
838,526 |
|
|
11,823 |
|
5.66 |
|
SBA loans |
|
|
259,649 |
|
|
7,116 |
|
11.02 |
|
|
|
259,368 |
|
|
7,213 |
|
11.19 |
|
|
|
262,825 |
|
|
7,174 |
|
10.95 |
|
C&I loans |
|
|
172,481 |
|
|
3,367 |
|
7.85 |
|
|
|
134,893 |
|
|
2,670 |
|
7.96 |
|
|
|
114,103 |
|
|
2,232 |
|
7.85 |
|
Home mortgage loans |
|
|
501,862 |
|
|
6,348 |
|
5.06 |
|
|
|
512,023 |
|
|
6,495 |
|
5.07 |
|
|
|
508,976 |
|
|
6,043 |
|
4.75 |
|
Consumer loans |
|
|
1,219 |
|
|
32 |
|
10.44 |
|
|
|
1,386 |
|
|
35 |
|
10.10 |
|
|
|
1,334 |
|
|
16 |
|
4.77 |
|
Loans(2) |
|
|
1,843,284 |
|
|
30,605 |
|
6.67 |
|
|
|
1,808,932 |
|
|
30,142 |
|
6.69 |
|
|
|
1,725,764 |
|
|
27,288 |
|
6.34 |
|
Total interest-earning assets |
|
|
2,191,087 |
|
|
34,357 |
|
6.29 |
|
|
|
2,089,627 |
|
|
32,913 |
|
6.32 |
|
|
|
2,030,139 |
|
|
30,102 |
|
5.94 |
|
Noninterest-earning assets |
|
|
89,446 |
|
|
|
|
|
|
87,586 |
|
|
|
|
|
|
84,991 |
|
|
|
|
||||||
Total assets |
|
$ |
2,280,533 |
|
|
|
|
|
$ |
2,177,213 |
|
|
|
|
|
$ |
2,115,130 |
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Money market deposits and others |
|
$ |
338,554 |
|
$ |
3,494 |
|
4.15 |
% |
|
$ |
367,386 |
|
$ |
3,940 |
|
4.31 |
% |
|
$ |
357,517 |
|
$ |
3,201 |
|
3.59 |
% |
Time deposits |
|
|
1,102,587 |
|
|
13,849 |
|
5.05 |
|
|
|
954,442 |
|
|
11,735 |
|
4.94 |
|
|
|
843,836 |
|
|
8,719 |
|
4.14 |
|
Total interest-bearing deposits |
|
|
1,441,141 |
|
|
17,343 |
|
4.84 |
|
|
|
1,321,828 |
|
|
15,675 |
|
4.77 |
|
|
|
1,201,353 |
|
|
11,920 |
|
3.98 |
|
Borrowings |
|
|
77,314 |
|
|
820 |
|
4.27 |
|
|
|
108,681 |
|
|
1,259 |
|
4.66 |
|
|
|
82,586 |
|
|
930 |
|
4.52 |
|
Total interest-bearing liabilities |
|
|
1,518,455 |
|
|
18,163 |
|
4.81 |
|
|
|
1,430,509 |
|
|
16,934 |
|
4.76 |
|
|
|
1,283,939 |
|
|
12,850 |
|
4.01 |
|
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Noninterest-bearing deposits |
|
|
529,179 |
|
|
|
|
|
|
514,503 |
|
|
|
|
|
|
615,748 |
|
|
|
|
||||||
Other noninterest-bearing liabilities |
|
|
39,301 |
|
|
|
|
|
|
39,207 |
|
|
|
|
|
|
31,810 |
|
|
|
|
||||||
Total noninterest-bearing liabilities |
|
|
568,480 |
|
|
|
|
|
|
553,710 |
|
|
|
|
|
|
647,558 |
|
|
|
|
||||||
Shareholders’ equity |
|
|
193,598 |
|
|
|
|
|
|
192,994 |
|
|
|
|
|
|
183,633 |
|
|
|
|
||||||
Total liabilities and shareholders’ equity |
|
$ |
2,280,533 |
|
|
|
|
|
|
2,177,213 |
|
|
|
|
|
|
2,115,130 |
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net interest income / interest rate spreads |
|
|
|
$ |
16,194 |
|
1.48 |
% |
|
|
|
$ |
15,979 |
|
1.56 |
% |
|
|
|
$ |
17,252 |
|
1.93 |
% |
|||
Net interest margin |
|
|
|
|
|
2.96 |
% |
|
|
|
|
|
3.06 |
% |
|
|
|
|
|
3.40 |
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Cost of deposits & cost of funds: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total deposits / cost of deposits |
|
$ |
1,970,320 |
|
$ |
17,343 |
|
3.54 |
% |
|
$ |
1,836,331 |
|
$ |
15,675 |
|
3.43 |
% |
|
$ |
1,817,101 |
|
$ |
11,920 |
|
2.63 |
% |
Total funding liabilities / cost of funds |
|
|
2,047,634 |
|
|
18,163 |
|
3.57 |
|
|
|
1,945,012 |
|
|
16,934 |
|
3.50 |
|
|
|
1,899,687 |
|
|
12,850 |
|
2.71 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
| (1) | Annualized. |
|
| (2) | Includes loans held for sale. |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
For the Six Months Ended |
||||||||||||||||
|
|
2Q2024 |
|
|
2Q2023 |
|
||||||||||||
($ in thousands) |
|
Average Balance |
|
Interest and Fees |
|
Yield/ Rate(1) |
|
Average Balance |
|
Interest and Fees |
|
Yield/ Rate(1) |
||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-bearing deposits in other banks |
|
$ |
104,515 |
|
$ |
2,836 |
|
5.37 |
% |
|
$ |
76,695 |
|
$ |
1,849 |
|
4.79 |
% |
Federal funds sold and other investments |
|
|
16,286 |
|
|
637 |
|
7.82 |
|
|
|
13,761 |
|
|
420 |
|
6.10 |
|
Available-for-sale debt securities, at fair value |
|
|
193,448 |
|
|
3,050 |
|
3.15 |
|
|
|
210,130 |
|
|
3,128 |
|
2.98 |
|
CRE loans |
|
|
904,667 |
|
|
27,471 |
|
6.11 |
|
|
|
839,459 |
|
|
23,002 |
|
5.53 |
|
SBA loans |
|
|
259,508 |
|
|
14,329 |
|
11.10 |
|
|
|
268,823 |
|
|
14,156 |
|
10.62 |
|
C&I loans |
|
|
153,687 |
|
|
6,037 |
|
7.90 |
|
|
|
117,988 |
|
|
4,432 |
|
7.58 |
|
Home mortgage loans |
|
|
506,943 |
|
|
12,843 |
|
5.07 |
|
|
|
497,949 |
|
|
11,676 |
|
4.69 |
|
Consumer & other loans |
|
|
1,303 |
|
|
67 |
|
10.26 |
|
|
|
1,360 |
|
|
33 |
|
4.92 |
|
Loans(2) |
|
|
1,826,108 |
|
|
60,747 |
|
6.68 |
|
|
|
1,725,579 |
|
|
53,299 |
|
6.22 |
|
Total interest-earning assets |
|
|
2,140,357 |
|
|
67,270 |
|
6.31 |
|
|
|
2,026,165 |
|
|
58,696 |
|
5.83 |
|
Noninterest-earning assets |
|
|
88,516 |
|
|
|
|
|
|
83,771 |
|
|
|
|
||||
Total assets |
|
$ |
2,228,873 |
|
|
|
|
|
$ |
2,109,936 |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Money market deposits and others |
|
$ |
352,970 |
|
$ |
7,434 |
|
4.24 |
% |
|
$ |
383,521 |
|
$ |
6,351 |
|
3.34 |
% |
Time deposits |
|
|
1,028,515 |
|
|
25,584 |
|
5.00 |
|
|
|
815,267 |
|
|
15,952 |
|
3.95 |
|
Total interest-bearing deposits |
|
|
1,381,485 |
|
|
33,018 |
|
4.81 |
|
|
|
1,198,788 |
|
|
22,303 |
|
3.75 |
|
Borrowings |
|
|
92,998 |
|
|
2,079 |
|
4.50 |
|
|
|
54,533 |
|
|
1,249 |
|
4.62 |
|
Total interest-bearing liabilities |
|
|
1,474,483 |
|
|
35,097 |
|
4.79 |
|
|
|
1,253,321 |
|
|
23,552 |
|
3.79 |
|
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Noninterest-bearing deposits |
|
|
521,841 |
|
|
|
|
|
|
643,465 |
|
|
|
|
||||
Other noninterest-bearing liabilities |
|
|
39,253 |
|
|
|
|
|
|
31,729 |
|
|
|
|
||||
Total noninterest-bearing liabilities |
|
|
561,094 |
|
|
|
|
|
|
675,194 |
|
|
|
|
||||
Shareholders’ equity |
|
|
193,296 |
|
|
|
|
|
|
181,421 |
|
|
|
|
||||
Total liabilities and shareholders’ equity |
|
$ |
2,228,873 |
|
|
|
|
|
|
2,109,936 |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net interest income / interest rate spreads |
|
|
|
$ |
32,173 |
|
1.52 |
% |
|
|
|
$ |
35,144 |
|
2.04 |
% |
||
Net interest margin |
|
|
|
|
|
3.01 |
% |
|
|
|
|
|
3.48 |
% |
||||
|
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Cost of deposits & cost of funds: |
|
|
|
|
|
|
|
|
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Total deposits / cost of deposits |
|
$ |
1,903,326 |
|
$ |
33,018 |
|
3.49 |
% |
|
|
1,842,253 |
|
$ |
22,303 |
|
2.44 |
% |
Total funding liabilities / cost of funds |
|
|
1,996,324 |
|
|
35,097 |
|
3.54 |
|
|
|
1,896,786 |
|
|
23,552 |
|
2.50 |
|
|
|
|
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(1) |
Annualized. |
|
(2) |
Includes loans held for sale. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240725607933/en/
Investor Relations
OP Bancorp
Christine Oh
EVP & CFO
213.892.1192
Christine.oh@myopenbank.com
Source: OP Bancorp
FAQ
What was OP Bancorp's net income for the second quarter of 2024?
How much did OP Bancorp's diluted earnings per share increase in Q2 2024?
What was the net interest income for OP Bancorp in Q2 2024?
How did OP Bancorp's total assets change in Q2 2024?
What was OP Bancorp's total deposit growth in Q2 2024?
What was the net interest margin for OP Bancorp in Q2 2024?
What was the provision for credit losses for OP Bancorp in Q2 2024?
How did loans past due 30-89 days change for OP Bancorp in Q2 2024?
What is OP Bancorp's CET1 ratio as of Q2 2024?
