OP Bancorp Reports Net Income for 2024 Third Quarter of $5.4 Million and Diluted Earnings Per Share of $0.36

Rhea-AI Summary

OP Bancorp reported net income of $5.4 million and diluted earnings per share of $0.36 for Q3 2024, unchanged from Q2 2024. Total assets increased 4.2% to $2.39 billion, with gross loans up 3.3% to $1.93 billion and deposits growing 6.4% to $2.06 billion. Net interest income rose 1.9% to $16.5 million, while net interest margin slightly decreased to 2.95%. Credit quality remained strong with nonperforming loans to gross loans at 0.19%. The bank maintained well-capitalized status with a CET1 ratio of 11.57% and increased book value per share to $13.75.

Positive

• Deposits grew 6.4% to $2.06 billion
• Total assets increased 4.2% to $2.39 billion
• Gross loans rose 3.3% to $1.93 billion
• Book value per share increased to $13.75 from $13.23
• Strong credit quality with nonperforming loans at only 0.19% of gross loans

Negative

• Net interest margin declined to 2.95% from 3.38% year-over-year
• Net interest income decreased 4.7% year-over-year
• Efficiency ratio increased to 61.31% from 57.92% year-over-year
• CET1 capital ratio declined to 11.57% from 12.01% quarter-over-quarter

Insights

Financial Analyst

OP Bancorp's Q3 2024 results show stable performance with some mixed signals. Net income remained flat at $5.4 million quarter-over-quarter, while showing a modest 6.2% increase year-over-year. Key positive indicators include loan growth of 3.3% and deposit growth of 6.4% QoQ, demonstrating strong business momentum.

The bank's net interest margin slightly compressed to 2.95% from 2.96%, but credit quality metrics improved with nonperforming loans decreasing to 0.19% from 0.23%. The efficiency ratio increased to 61.31%, indicating some pressure on operational costs.

Capital levels remain strong with a CET1 ratio of 11.57%, though slightly down from previous quarters. The increase in book value per share to $13.75 and maintained dividend of $0.12 reflect financial stability and shareholder commitment.

Credit Risk Analyst

The credit profile shows encouraging trends with the allowance for credit losses to gross loans at 1.19%, providing adequate coverage. The reduction in provision for credit losses to $448,000 from $617,000 QoQ suggests improving credit conditions, though the increase in 30-89 day past due loans to 0.53% from 0.36% warrants monitoring.

Net charge-offs remain minimal at 0.01%, while criticized loans decreased slightly to 0.85% of gross loans. The 634% coverage ratio of allowance to nonperforming loans provides a strong buffer against potential losses. The overall credit metrics indicate a well-managed loan portfolio despite challenging market conditions.

2024 Third Quarter Highlights compared with 2024 Second Quarter:

• Financial Results:
  • Net income of $5.4 million, no change compared to $5.4 million
  • Diluted earnings per share of $0.36, no change compared to $0.36
  • Net interest income of $16.5 million, compared to $16.2 million
  • Net interest margin of 2.95%, compared to 2.96%
  • Provision for credit losses of $448 thousand, compared to $617 thousand
  • Total assets of $2.39 billion, a 4.2% increase compared to $2.29 billion
  • Gross loans of $1.93 billion, a 3.3% increase compared to $1.87 billion
  • Total deposits of $2.06 billion, a 6.4% increase compared to $1.94 billion
• Credit Quality:
  • Allowance for credit losses to gross loans of 1.19%, compared to 1.22%
  • Net charge-offs (recoveries)⁽¹⁾ to average gross loans⁽²⁾ of 0.01%, compared to (0.00)%
  • Loans past due 30-89 days to gross loans of 0.53%, compared to 0.36%
  • Nonperforming loans to gross loans of 0.19%, compared to 0.23%
  • Criticized loans⁽³⁾ to gross loans of 0.85%, compared to 0.88%
• Capital Levels:
  • Remained well-capitalized with a Common Equity Tier 1 (“CET1”) ratio of 11.57%
  • Book value per common share increased to $13.75, compared to $13.23
  • Repurchased 4,610 shares of common stock at an average price of $10.09 per share
  • Paid quarterly cash dividend of $0.12 per share for the periods

___________________________________________________________

⁽¹⁾ Annualized.

⁽²⁾ Includes loans held for sale.

⁽³⁾ Includes special mention, substandard, doubtful, and loss categories.

LOS ANGELES--(BUSINESS WIRE)-- OP Bancorp (the “Company”) (NASDAQ: OPBK), the holding company of Open Bank (the “Bank”), today reported its financial results for the third quarter of 2024. Net income remained relatively the same for both the third quarter and second quarter of 2024 at $5.4 million, or $0.36 per diluted common share, compared with $5.1 million, or $0.33 per diluted common share, for the third quarter of 2023.

Min Kim, President and Chief Executive Officer:

“We continued to grow our loans and deposits at double digit annualized rates in this quarter while maintaining ample liquidity, stable net interest margin, and strong credit quality. As the Fed's easing cycle began in the quarter, the pressure on funding cost and net interest margin is diminishing, and we believe we are well positioned to prolong our growth and performance to achieve our long term strategic goals,” said Min Kim, President and Chief Executive.

SELECTED FINANCIAL HIGHLIGHTS

($ in thousands, except per share data)		As of and For the Quarter												% Change 3Q2024 vs.
		3Q2024				2Q2024				3Q2023				2Q2024			3Q2023
Selected Income Statement Data:
Net interest income		$	16,506			$	16,194			$	17,313			1.9	%		(4.7	)%
Provision for credit losses			448				617				1,359			(27.4	)		(67.0	)
Noninterest income			4,240				4,184				2,601			1.3			63.0
Noninterest expense			12,720				12,189				11,535			4.4			10.3
Income tax expense			2,142				2,136				1,899			0.3			12.8
Net income			5,436				5,436				5,121			—			6.2
Diluted earnings per share			0.36				0.36				0.33			—			9.1
Selected Balance Sheet Data:
Gross loans		$	1,931,007			$	1,870,106			$	1,759,525			3.3	%		9.7	%
Total deposits			2,064,603				1,940,821				1,825,171			6.4			13.1
Total assets			2,387,980				2,290,680				2,142,675			4.2			11.4
Average loans(1)			1,905,952				1,843,284				1,740,188			3.4			9.5
Average deposits			1,998,633				1,970,320				1,821,361			1.4			9.7
Credit Quality:
Nonperforming loans		$	3,620			$	4,389			$	4,211			(17.5	)%		(14.0	)%
Nonperforming loans to gross loans			0.19	%			0.23	%			0.24	%		(0.04	)		(0.05	)
Criticized loans(2) to gross loans			0.85				0.88				0.78			(0.03	)		0.07
Net charge-offs (recoveries)(3) to average gross loans(1)			0.01				(0.00	)			0.11			0.01			(0.10	)
Allowance for credit losses to gross loans			1.19				1.22				1.23			(0.03	)		(0.04	)
Allowance for credit losses to nonperforming loans			634				519				513			115.00			121.00
Financial Ratios:
Return on average assets(3)			0.94	%			0.95	%			0.96	%		(0.01	)%		(0.02	)%
Return on average equity(3)			10.95				11.23				11.07			(0.28	)		(0.12	)
Net interest margin(3)			2.95				2.96				3.38			(0.01	)		(0.43	)
Efficiency ratio(4)			61.31				59.81				57.92			1.50			3.39
Common equity tier 1 capital ratio			11.57				12.01				12.09			(0.44	)		(0.52	)
Leverage ratio			9.30				9.28				9.63			0.02			(0.33	)
Book value per common share		$	13.75			$	13.23			$	12.17			3.9			13.0

(1)		Includes loans held for sale.
(2)		Includes special mention, substandard, doubtful, and loss categories.
(3)		Annualized.
(4)		Represents noninterest expense divided by the sum of net interest income and noninterest income.

INCOME STATEMENT HIGHLIGHTS

Net Interest Income and Net Interest Margin

($ in thousands)		For the Three Months Ended									% Change 3Q2024 vs.
		3Q2024			2Q2024			3Q2023			2Q2024			3Q2023
Interest Income
Interest income		$	35,299		$	34,357		$	31,186		2.7	%		13.2	%
Interest expense			18,793			18,163			13,873		3.5			35.5
Net interest income		$	16,506		$	16,194		$	17,313		1.9	%		(4.7	)%

($ in thousands)		For the Three Months Ended																		Yield Change 3Q2024 vs.
		3Q2024						2Q2024						3Q2023
		Interest and Fees			Yield/Rate(1)			Interest and Fees			Yield/Rate(1)			Interest and Fees			Yield/Rate(1)			2Q2024			3Q2023
Interest-earning Assets:
Loans		$	31,885		6.66	%		$	30,605		6.67	%		$	28,250		6.45	%		(0.01	)%		0.21	%
Total interest-earning assets			35,299		6.30				34,357		6.29				31,186		6.08			0.01			0.22
Interest-bearing Liabilities:
Interest-bearing deposits			17,921		4.85				17,343		4.84				13,006		4.22			0.01			0.63
Total interest-bearing liabilities			18,793		4.82				18,163		4.81				13,873		4.23			0.01			0.59
Ratios:
Net interest income / interest rate spreads			16,506		1.48				16,194		1.48				17,313		1.85			—			(0.37	)
Net interest margin					2.95						2.96						3.38			(0.01	)		(0.43	)
Total deposits / cost of deposits			17,921		3.57				17,343		3.54				13,006		2.83			0.03			0.74
Total funding liabilities / cost of funds			18,793		3.60				18,163		3.57				13,873		2.90			0.03			0.70

(1)

Annualized.

($ in thousands)		For the Three Months Ended																					Yield Change 3Q2024 vs.
		3Q2024							2Q2024							3Q2023
		Interest & Fees				Yield(1)			Interest & Fees				Yield(1)			Interest & Fees				Yield(1)			2Q2024			3Q2023
Loan Yield Component:
Contractual interest rate		$	31,182			6.52	%		$	29,719			6.48	%		$	27,319			6.24	%		0.04	%		0.28	%
Accretion of SBA loan discount(2)			918			0.19				1,087			0.24				1,263			0.29			(0.05	)		(0.10	)
Amortization of net deferred fees			23			—				(44	)		(0.01	)			1			—			0.01			—
Amortization of premium			(487	)		(0.10	)			(396	)		(0.09	)			(445	)		(0.10	)		(0.01	)		—
Net interest recognized on nonaccrual loans			(61	)		(0.01	)			(3	)		0.00				(26	)		(0.01	)		(0.01	)		—
Prepayment penalty income and other fees(3)			310			0.06				242			0.05				138			0.03			0.01			0.03
Yield on loans		$	31,885			6.66	%		$	30,605			6.67	%		$	28,250			6.45	%		(0.01	)%		0.21	%

(1)		Annualized.
(2)		Includes discount accretion from SBA loan payoffs of $426 thousand, $564 thousand and $666 thousand for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively.
(3)		Includes prepayment penalty income of $114 thousand and $26 thousand for the three months ended September 30, 2024 and June 30, 2024, respectively, from Commercial Real Estate (“CRE”) loans.

Third Quarter 2024 vs. Second Quarter 2024

Net interest income increased $312 thousand, or 1.9%, primarily due to higher interest income on loans but partially offset by higher interest expense on interest-bearing deposits and lower interest income on interest-bearing deposits in other banks. Net interest margin was 2.95%, a decrease of 1 basis point from 2.96%.

• A $1.3 million increase in interest income on loans was primarily due to a $62.7 million, or 3.4%, increase in average balance.
• A $578 thousand increase in interest expense on interest-bearing deposits was primarily due to a $29.4 million, or 2.0%, increase in average balance.
• A $373 thousand decrease in interest income on interest-bearing deposits in other banks was primarily due to a $27.0 million, or 19.8%, decrease in average balance.

Third Quarter 2024 vs. Third Quarter 2023

Net interest income decreased $807 thousand, or 4.7%, primarily due to higher interest expense on interest-bearing deposits, partially offset by higher interest income on loans and higher interest-bearing deposits in other banks, as our deposit costs repriced quicker than our interest-earning asset yields following the Federal Reserve’s rate increases. Net interest margin was 2.95%, a decrease of 43 basis points from 3.38%.

• A $4.9 million increase in interest expense on interest-bearing deposits was primarily due to a $248.4 million, or 20.3%, increase in average balance and a 63 basis point increase in average cost.
• A $3.6 million increase in interest income on loans was primarily due to a $165.8 million, or 9.5%, increase in average balance and a 21 basis point increase in average yield.
• A $358 thousand increase in interest income on interest-bearing deposits in other banks was primarily due to a $26.3 million, or 31.7%, increase in average balance.

Provision for Credit Losses

($ in thousands)		For the Three Months Ended
		3Q2024			2Q2024				3Q2023
Provision for credit losses on loans		$	234		$	627			$	1,303
Provision for (reversal of) credit losses on off-balance sheet exposure			214			(10	)			56
Total provision for credit losses		$	448		$	617			$	1,359

Third Quarter 2024 vs. Second Quarter 2024

The Company recorded $448 thousand in total provision for credit losses, a decrease of $169 thousand, compared with $617 thousand. Provision for credit losses on loans decreased $393 thousand and provision for credit losses on off-balance sheet exposure increased $224 thousand.

Provision for credit losses on loans of $234 thousand was primarily due to a $215 thousand increase in the qualitative reserve driven by declining collateral values for collateral dependent CRE loans and weakening economic and business conditions.

Provision for credit losses on off-balance sheet exposure of $214 thousand was primarily due to increases in unfunded commitment balance and utilization of commitment.

Third Quarter 2024 vs. Third Quarter 2023

The Company recorded $448 thousand in total provision for credit losses, a decrease of $911 thousand, compared with $1.4 million.

Noninterest Income

($ in thousands)		For the Three Months Ended									% Change 3Q2024 vs.
		3Q2024			2Q2024			3Q2023			2Q2024			3Q2023
Noninterest Income
Service charges on deposits		$	889		$	793		$	575		12.1	%		54.6	%
Loan servicing fees, net of amortization			693			575			468		20.5			48.1
Gain on sale of loans			2,088			2,325			1,179		(10.2	)		77.1
Other income			570			491			379		16.1			50.4
Total noninterest income		$	4,240		$	4,184		$	2,601		1.3	%		63.0	%

Third Quarter 2024 vs. Second Quarter 2024

Noninterest income increased $56 thousand, or 1.3%, primarily due to higher loan servicing fees and higher service charges on deposits, partially offset by lower gain on the sale of loans.

• Loan servicing fees, net of amortization, were $693 thousand, an increase of $118 thousand from $575 thousand, primarily due to a decrease in servicing fee amortization driven by lower loan payoffs in loan servicing portfolio.
• Service charges on deposits were $889 thousand, an increase of $96 thousand from $793 thousand, primarily due to an increase in deposit analysis fees from analysis accounts added in 2024.
• Gain on sale of loans was $2.1 million, a decrease of $237 thousand from $2.3 million, primarily due to a lower average premium on sales. The Bank sold $35.6 million in SBA loans at an average premium rate of 7.30%, compared to the sale of $32.1 million at an average premium rate of 8.58%.

Third Quarter 2024 vs. Third Quarter 2023

Noninterest income increased $1.6 million, or 63.0%, primarily due to higher gain on sale of loans, higher service charges on deposits, and higher loan servicing fees.

• Gain on sale of loans was $2.1 million, an increase of $909 thousand from $1.2 million, primarily due to a higher loan sold amount and a higher average premium rate. The Bank sold $35.6 million in SBA loans at an average premium rate of 7.30%, compared to the sale of $23.4 million at an average premium rate of 6.50%.
• Service charges on deposits were $889 thousand, an increase of $314 thousand from $575 thousand, primarily due to an increase in deposit analysis fees from an increase in the number of analysis accounts.
• Loan servicing fees were $693 thousand, an increase of $225 thousand from $468 thousand, primarily due to a decrease in servicing fee amortization driven by lower loan payoffs in loan servicing portfolio.

Noninterest Expense

($ in thousands)		For the Three Months Ended									% Change 3Q2024 vs.
		3Q2024			2Q2024			3Q2023			2Q2024			3Q2023
Noninterest Expense
Salaries and employee benefits		$	8,031		$	7,568		$	7,014		6.1	%		14.5	%
Occupancy and equipment			1,676			1,660			1,706		1.0			(1.8	)
Data processing and communication			634			530			369		19.6			71.8
Professional fees			346			406			440		(14.8	)		(21.4	)
FDIC insurance and regulatory assessments			391			378			333		3.4			17.4
Promotion and advertising			151			151			207		—			(27.1	)
Directors’ fees			154			178			164		(13.5	)		(6.1	)
Foundation donation and other contributions			549			539			529		1.9			3.8
Other expenses			788			779			773		1.2			1.9
Total noninterest expense		$	12,720		$	12,189		$	11,535		4.4	%		10.3	%

Third Quarter 2024 vs. Second Quarter 2024

Noninterest expense increased $531 thousand, or 4.4%, primarily due to higher salaries and employee benefits, and data processing and communication.

• Salaries and employee benefits increased $463 thousand, primarily due to increases in employee incentive accruals and employee vacation accruals.
• Data processing and communication increased $104 thousand, primarily due to accrual adjustments made to be in line with our continued growth.

Third Quarter 2024 vs. Third Quarter 2023

Noninterest expense increased $1.2 million, or 10.3%, primarily due to higher salaries and employee benefits, and data processing and communication.

• Salaries and employee benefits increased $1.0 million, primarily due to increases in salaries and employee benefits to support our growth and a lower accrual on employee incentives in the third quarter of 2023.
• Data processing and communication increased $265 thousand, primarily due to additional expense to support our continued growth and a lower expense in the third quarter of 2023 from a credit received on data processing fees.

Income Tax Expense

Third Quarter 2024 vs. Second Quarter 2024

Income tax expense was $2.1 million, resulting in an effective tax rate of 28.3%, compared to income tax expense of $2.1 million, resulting in an effective tax rate of 28.2%.

Third Quarter 2024 vs. Third Quarter 2023

Income tax expense was $2.1 million, resulting in an effective tax rate of 28.3%, compared to income tax expense of $1.9 million, resulting in an effective tax rate of 27.1%. The effective tax rate for the third quarter of 2023 was lower primarily due to adjustments for differences between the prior year tax provision and the final tax returns that were applied in the quarter.

BALANCE SHEET HIGHLIGHTS

Loans

($ in thousands)		As of									% Change 3Q2024 vs.
		3Q2024			2Q2024			3Q2023			2Q2024			3Q2023
CRE loans		$	966,472		$	931,284		$	878,824		3.8	%		10.0	%
SBA loans			252,379			242,395			240,154		4.1			5.1
C&I loans			212,476			188,557			124,632		12.7			70.5
Home mortgage loans			499,666			506,873			515,789		(1.4	)		(3.1	)
Consumer & other loans			14			997			126		(98.6	)		(88.9	)
Gross loans		$	1,931,007		$	1,870,106		$	1,759,525		3.3	%		9.7	%

The following table presents new loan originations based on loan commitment amounts for the periods indicated:

($ in thousands)		For the Three Months Ended									% Change 3Q2024 vs.
		3Q2024			2Q2024			3Q2023			2Q2024			3Q2023
CRE loans		$	68,525		$	41,990		$	33,222		63.2	%		106.3	%
SBA loans			46,302			24,142			39,079		91.8			18.5
C&I loans			27,771			21,271			14,617		30.6			90.0
Home mortgage loans			10,105			13,720			9,137		(26.3	)		10.6
Gross loans		$	152,703		$	101,123		$	96,055		51.0	%		59.0	%

The following table presents changes in gross loans by loan activity for the periods indicated:

($ in thousands)		For the Three Months Ended
		3Q2024				2Q2024				3Q2023
Loan Activities:
Gross loans, beginning		$	1,870,106			$	1,804,987			$	1,716,197
New originations			152,703				101,123				96,055
Net line advances			(526	)			37,929				22,146
Purchases			862				5,559				6,732
Sales			(35,576	)			(32,102	)			(23,377	)
Paydowns			(24,798	)			(19,710	)			(22,169	)
Payoffs			(29,642	)			(36,902	)			(36,024	)
Decrease (increase) in loans held for sale			(1,674	)			9,590				—
Other			(448	)			(368	)			215
Total			60,901				65,119				43,328
Gross loans, ending		$	1,931,007			$	1,870,106			$	1,759,525

As of September 30, 2024 vs. June 30, 2024

Gross loans were $1.93 billion as of September 30, 2024, up $60.9 million from June 30, 2024, primarily due to new loan originations, partially offset by loan sales, payoffs and paydowns. New loan originations, loan sales, and loan payoffs and paydowns were $152.7 million, $35.6 million, and $54.4 million, respectively, for the third quarter of 2024, compared with $101.1 million, $32.1 million, and $56.6 million, respectively, for the second quarter of 2024.

As of September 30, 2024 vs. September 30, 2023

Gross loans were $1.93 billion as of September 30, 2024, up $171.5 million, from September 30, 2023, primarily due to and increase in new loan originations of $472.3 million, partially offset by loan sales of $132.6 million and loan payoffs and paydowns of $214.9 million.

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
		3Q2024						2Q2024						3Q2023
		%			Rate			%			Rate			%			Rate
Fixed rate		35.7	%		5.42	%		36.2	%		5.39	%		36.3	%		4.95	%
Hybrid rate		34.7			5.60			33.9			5.42			34.0			5.08
Variable rate		29.6			8.94			29.9			9.19			29.7			9.23
Gross loans		100.0	%		6.52	%		100.0	%		6.54	%		100.0	%		6.27	%

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 September 30, 2024
		Within One Year						One Year Through Five Years						After Five Years						Total
		Amount			Rate			Amount			Rate			Amount			Rate			Amount			Rate
Fixed rate		$	191,036		5.96	%		$	282,324		5.27	%		$	216,044		5.13	%		$	689,404		5.42	%
Hybrid rate			2,651		9.25				211,150		4.39				456,362		6.14				670,163		5.60
Variable rate			87,435		8.47				139,453		8.57				344,552		9.21				571,440		8.94
Gross loans		$	281,122		6.77	%		$	632,927		5.71	%		$	1,016,958		6.97	%		$	1,931,007		6.52	%

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 3Q2024 vs.
		3Q2024				2Q2024				3Q2023				2Q2024				3Q2023
Allowance for credit losses on loans, beginning		$	22,760			$	22,129			$	20,802			$	631			$	1,958
Provision for credit losses			234				627				1,303				(393	)			(1,069	)
Gross charge-offs			(40	)			—				(492	)			(40	)			452
Gross recoveries			6				4				4				2				2
Net (charge-offs) recoveries			(34	)			4				(488	)			(38	)			454
Allowance for credit losses on loans, ending		$	22,960			$	22,760			$	21,617			$	200			$	1,343
Allowance for credit losses on off-balance sheet exposure, beginning		$	458			$	468			$	367			$	(10	)		$	91
Provision for (reversal of) credit losses			214				(10	)			56				224				158
Allowance for credit losses on off-balance sheet exposure, ending		$	672			$	458			$	423			$	214			$	249

Asset Quality

($ in thousands)		As of and For the Three Months Ended												Change 3Q2024 vs.
		3Q2024				2Q2024				3Q2023				2Q2024			3Q2023
Loans 30-89 days past due and still accruing		$	10,306			$	6,652			$	8,356			54.9	%		23.3	%
As a % of gross loans			0.53	%			0.36	%			0.47	%		0.17			0.06
Nonperforming loans(1)		$	3,620			$	4,389			$	4,211			(17.5	)%		(14.0	)%
Nonperforming assets(1)			4,857				5,626				4,211			(13.7	)		15.3
Nonperforming loans to gross loans			0.19	%			0.23	%			0.24	%		(0.04	)		(0.05	)
Nonperforming assets to total assets			0.20				0.25				0.20			(0.05	)		—
Criticized loans(1)(2)		$	16,500			$	16,428			$	13,790			0.4	%		19.7	%
Criticized loans to gross loans			0.85	%			0.88	%			0.78	%		(0.03	)		0.07
Allowance for credit losses ratios:
As a % of gross loans			1.19	%			1.22	%			1.23	%		(0.03	)%		(0.04	)%
As a % of nonperforming loans			634				519				513			115			121
As a % of nonperforming assets			473				405				513			68			(40	)
As a % of criticized loans			139				139				157			—			(18	)
Net charge-offs (recoveries)(3) to average gross loans(4)			0.01				(0.00	)			0.11			0.01			(0.10	)

(1)		Excludes the guaranteed portion of SBA loans that are in liquidation totaling $11.1 million, $3.5 million and $5.2 million as of September 30, 2024, June 30, 2024 and September 30, 2023, respectively.
(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 1.19%.

• Loans 30-89 days past due and still accruing were $10.3 million or 0.53% of gross loans as of September 30, 2024, compared with $6.7 million or 0.36% as of June 30, 2024. The increase was largely due to four home mortgage loans totaling $2.4 million and three SBA real estate loans totaling $1.3 million.
• Nonperforming loans were $3.6 million or 0.19% of gross loans as of September 30, 2024, compared with $4.4 million or 0.23% as of June 30, 2024.
• Nonperforming assets were $4.9 million or 0.20% of total assets as of September 30, 2024, compared with $5.6 million or 0.25% as of June 30, 2024. OREO remained the same at $1.2 million as of September 30, 2024 and June 30, 2024, which is secured by a mix-use property in Los Angeles Koreatown with 90% guaranteed by SBA.
• Criticized loans were $16.5 million or 0.85% of gross loans as of September 30, 2024, compared with $16.4 million or 0.88% as of June 30, 2024.
• Net charge-offs were $34 thousand or 0.01% of average loans in the third quarter of 2024, compared to net recoveries of $4 thousand, or 0.00% of average loans in the second quarter of 2024 and net recoveries of $488 thousand, or 0.11% of average loans in the third quarter of 2023.

Deposits

($ in thousands)		As of																		% Change 3Q2024 vs.
		3Q2024						2Q2024						3Q2023
		Amount			%			Amount			%			Amount			%			2Q2024			3Q2023
Noninterest-bearing deposits		$	561,801		27.2	%		$	518,456		26.7	%		$	605,509		33.2	%		8.4	%		(7.2	)%
Money market deposits and others			343,188		16.6				332,137		17.1				348,869		19.1			3.3			(1.6	)
Time deposits			1,159,614		56.2				1,090,228		56.2				870,793		47.7			6.4			33.2
Total deposits		$	2,064,603		100.0	%		$	1,940,821		100.0	%		$	1,825,171		100.0	%		6.4	%		13.1	%
Estimated uninsured deposits		$	946,406		45.8	%		$	860,419		44.3	%		$	808,776		44.3	%		10.0	%		17.0	%

As of September 30, 2024 vs. June 30, 2024

Total deposits were $2.06 billion as of September 30, 2024, reflecting an increase of $123.8 million from June 30, 2024, primarily due to increases of $69.4 million in time deposits and $43.3 million in noninterest-bearing deposits. Customers’ preference for high-rate deposit products continued to drive the increase in time deposits. The increase in noninterest-bearing deposits was mostly driven by balance increases in existing customers, including escrow and 1031 exchanges accounts. The composition of noninterest-bearing deposits also increased to 27.2% of total deposits from 26.7%.

As of September 30, 2024 vs. September 30, 2023

Total deposits were $2.06 billion as of September 30, 2024, up $239.4 million from September 30, 2023, primarily driven by a $288.8 million increase in time deposits, offset by decreases of $43.7 million in noninterest-bearing deposits and $5.7 million in money market deposits. Noninterest-bearing deposits, as a percentage of total deposits, decreased to 27.2% from 33.2%. The composition shift to time deposits was primarily due to customers’ preference for high-rate deposit products driven by market rate increases as a result of the Federal Reserve’s rate increases.

The following table sets forth the maturity of time deposits as of September 30, 2024:

		As of September 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 $250)		$	205,957			$	189,693			$	87,508			$	80,133			$	1,256			$	564,547
Time deposits ($250 or less)			261,163				124,315				97,180				92,585				19,824				595,067
Total time deposits		$	467,120			$	314,008			$	184,688			$	172,718			$	21,080			$	1,159,614
Weighted average rate			5.18	%			5.03	%			5.16	%			4.93	%			3.94	%			5.08	%

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)		3Q2024				2Q2024				3Q2023
Liquidity Assets:
Cash and cash equivalents		$	166,756			$	127,676			$	105,740
Available-for-sale debt securities			199,373				199,205				191,313
Liquid assets		$	366,129			$	326,881			$	297,053
Liquid assets to total assets			15.3	%			14.3	%			13.9	%
Available borrowings:
Federal Home Loan Bank—San Francisco		$	397,617			$	343,600			$	375,874
Federal Reserve Bank			207,782				191,421				186,380
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		$	705,399			$	635,021			$	662,254
Total available borrowings to total assets			29.5	%			27.6	%			30.9	%
Liquid assets and available borrowings to total deposits			51.9	%			49.6	%			52.6	%

Capital and Capital Ratios

On October 24, 2024, the Company’s Board of Directors declared a quarterly cash dividend of $0.12 per share of its common stock. The cash dividend is payable on or about November 21, 2024 to all shareholders of record as of the close of business on November 7, 2024. The payment of the dividend is based primarily on dividends from the Bank to the Company, and future dividends will depend on the Board’s assessment of the availability of capital levels to support the ongoing operating capital needs of both the Company and the Bank.

The Company also repurchased 4,610 shares of its common stock at an average price of $10.09 per share during the third quarter of 2024 under the stock repurchase program announced in August 2023. Since the announcement of the stock repurchase program in August 2023, the Company repurchased a total of 428,628 shares of its common stock at an average repurchase price of $9.37 per share through September 30, 2024.

		OP Bancorp(1)			Open Bank			Minimum Well Capitalized Ratio			Minimum Capital Ratio+ Conservation Buffer(2)
Risk-Based Capital Ratios:
Total risk-based capital ratio		12.79	%		12.69	%		10.00	%		10.50	%
Tier 1 risk-based capital ratio		11.57			11.47			8.00			8.50
Common equity tier 1 ratio		11.57			11.47			6.50			7.00
Leverage ratio		9.30			9.22			5.00			4.00

(1)		The capital requirements are only applicable to the Bank, and the Company's ratios are included for comparison purpose.
(2)		An additional 2.5% capital conservation buffer above the minimum capital ratios are required in order to avoid limitations on distributions, including dividend payments and certain discretionary bonuses to executive officers.

OP Bancorp														Change 3Q2024 vs.
		3Q2024				2Q2024				3Q2023				2Q2024			3Q2023
Risk-Based Capital Ratios:
Total risk-based capital ratio			12.79	%			13.26	%			13.31	%		(0.47	)%		(0.52	)%
Tier 1 risk-based capital ratio			11.57				12.01				12.09			(0.44	)		(0.52	)
Common equity tier 1 ratio			11.57				12.01				12.09			(0.44	)		(0.52	)
Leverage ratio			9.30				9.28				9.63			0.02			(0.33	)
Risk-weighted Assets ($ in thousands)		$	1,876,698			$	1,776,821			$	1,707,318			5.62			9.92

ABOUT OP BANCORP

OP Bancorp, the holding company for Open Bank (the “Bank”), is a California corporation whose common stock is quoted on the Nasdaq Global Market under the ticker symbol, “OPBK.” The Bank is engaged in the general commercial banking business in Los Angeles, Orange, and Santa Clara Counties in California, the Dallas metropolitan area in Texas, and Clark County in Nevada and is focused on serving the banking needs of small- and medium-sized businesses, professionals, and residents with a particular emphasis on Korean and other ethnic minority communities. The Bank currently operates eleven full-service branch offices in Downtown Los Angeles, Los Angeles Fashion District, Los Angeles Koreatown, Cerritos, Gardena, Buena Park, and Santa Clara, California, Carrollton, Texas and Las Vegas, Nevada. The Bank also has five loan production offices in Pleasanton, California, Atlanta, Georgia, Aurora, Colorado, Lynnwood, Washington, and Fairfax, Virginia. The Bank commenced its operations on June 10, 2005 as First Standard Bank and changed its name to Open Bank in October 2010. Its headquarters is located at 1000 Wilshire Blvd., Suite 500, Los Angeles, California 90017. Phone 213.892.9999; www.myopenbank.com.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain matters set forth herein constitute “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, 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 3Q2024 vs.
		3Q2024				2Q2024				3Q2023				2Q2024			3Q2023
Assets
Cash and due from banks		$	24,519			$	21,771			$	21,748			12.6	%		12.7	%
Interest-bearing deposits in other banks			142,237				105,905				83,992			34.3			69.3
Cash and cash equivalents			166,756				127,676				105,740			30.6			57.7
Available-for-sale debt securities, at fair value			199,373				199,205				191,313			0.1			4.2
Other investments			16,520				16,367				16,100			0.9			2.6
Loans held for sale			8,160				6,485				—			25.8			n/m
CRE loans			966,472				931,284				878,824			3.8			10.0
SBA loans			252,379				242,395				240,154			4.1			5.1
C&I loans			212,476				188,557				124,632			12.7			70.5
Home mortgage loans			499,666				506,873				515,789			(1.4	)		(3.1	)
Consumer loans			14				997				126			(98.6	)		(88.9	)
Gross loans receivable			1,931,007				1,870,106				1,759,525			3.3			9.7
Allowance for credit losses			(22,960	)			(22,760	)			(21,617	)		0.9			6.2
Net loans receivable			1,908,047				1,847,346				1,737,908			3.3			9.8
Premises and equipment, net			4,961				4,716				5,378			5.2			(7.8	)
Accrued interest receivable, net			9,479				8,555				7,996			10.8			18.5
Servicing assets			10,877				11,043				11,931			(1.5	)		(8.8	)
Company owned life insurance			22,739				22,566				22,071			0.8			3.0
Deferred tax assets, net			12,288				14,117				15,061			(13.0	)		(18.4	)
Other real estate owned			1,237				1,237				—			—			n/m
Operating right-of-use assets			7,870				8,348				8,993			(5.7	)		(12.5	)
Other assets			19,673				23,019				20,184			(14.5	)		(2.5	)
Total assets		$	2,387,980			$	2,290,680			$	2,142,675			4.2	%		11.4	%
Liabilities and Shareholders' Equity
Liabilities:
Noninterest-bearing		$	561,801			$	518,456			$	605,509			8.4	%		(7.2	)%
Money market and others			343,188				332,137				348,869			3.3			(1.6	)
Time deposits greater than $250			564,547				533,857				420,162			5.7			34.4
Other time deposits			595,067				556,371				450,631			7.0			32.1
Total deposits			2,064,603				1,940,821				1,825,171			6.4			13.1
Federal Home Loan Bank advances			75,000				115,000				95,000			(34.8	)		(21.1	)
Accrued interest payable			19,483				15,504				13,552			25.7			43.8
Operating lease liabilities			8,417				9,000				9,926			(6.5	)		(15.2	)
Other liabilities			16,874				14,369				14,719			17.4			14.6
Total liabilities			2,184,377				2,094,694				1,958,368			4.3			11.5
Shareholders' equity:
Common stock			73,697				73,749				77,632			(0.1	)		(5.1	)
Additional paid-in capital			11,713				11,441				10,606			2.4			10.4
Retained earnings			131,588				127,929				117,483			2.9			12.0
Accumulated other comprehensive loss			(13,395	)			(17,133	)			(21,414	)		(21.8	)		(37.4	)
Total shareholders’ equity			203,603				195,986				184,307			3.9			10.5
Total liabilities and shareholders' equity		$	2,387,980			$	2,290,680			$	2,142,675			4.2	%		11.4	%

CONSOLIDATED STATEMENTS OF INCOME (unaudited)

($ in thousands, except share and per share data)		For the Three Months Ended									% Change 3Q2024 vs.
		3Q2024			2Q2024			3Q2023			2Q2024			3Q2023
Interest income
Interest and fees on loans		$	31,885		$	30,605		$	28,250		4.2	%		12.9	%
Interest on available-for-sale debt securities			1,626			1,590			1,519		2.3			7.0
Other interest income			1,788			2,162			1,417		(17.3	)		26.2
Total interest income			35,299			34,357			31,186		2.7			13.2
Interest expense
Interest on deposits			17,921			17,343			13,006		3.3			37.8
Interest on borrowings			872			820			867		6.3			0.6	%
Total interest expense			18,793			18,163			13,873		3.5			35.5
Net interest income			16,506			16,194			17,313		1.9			(4.7	)
Provision for credit losses			448			617			1,359		(27.4	)		(67.0	)
Net interest income after provision for credit losses			16,058			15,577			15,954		3.1			0.7
Noninterest income
Service charges on deposits			889			793			575		12.1			54.6
Loan servicing fees, net of amortization			693			575			468		20.5			48.1
Gain on sale of loans			2,088			2,325			1,179		(10.2	)		77.1
Other income			570			491			379		16.1			50.4
Total noninterest income			4,240			4,184			2,601		1.3			63.0
Noninterest expense
Salaries and employee benefits			8,031			7,568			7,014		6.1			14.5
Occupancy and equipment			1,676			1,660			1,706		1.0			(1.8	)
Data processing and communication			634			530			369		19.6			71.8
Professional fees			346			406			440		(14.8	)		(21.4	)
FDIC insurance and regulatory assessments			391			378			333		3.4			17.4
Promotion and advertising			151			151			207		—			(27.1	)
Directors’ fees			154			178			164		(13.5	)		(6.1	)
Foundation donation and other contributions			549			539			529		1.9			3.8
Other expenses			788			779			773		1.2			1.9
Total noninterest expense			12,720			12,189			11,535		4.4			10.3
Income before income tax expense			7,578			7,572			7,020		0.1			7.9
Income tax expense			2,142			2,136			1,899		0.3			12.8
Net income		$	5,436		$	5,436		$	5,121		—	%		6.2	%
Book value per share		$	13.75		$	13.23		$	12.17		3.9	%		13.0	%
Earnings per share - basic			0.36			0.36			0.33		—			9.1
Earnings per share - diluted			0.36			0.36			0.33		—			9.1
Shares of common stock outstanding, at period end			14,811,671			14,816,281			15,149,203		—	%		(2.2	)%
Weighted average shares:
- Basic			14,812,118			14,868,344			15,131,587		(0.4	)%		(2.1	)%
- Diluted			14,812,118			14,868,344			15,140,577		(0.4	)		(2.2	)

KEY RATIOS

		For the Three Months Ended									% Change 3Q2024 vs.
		3Q2024			2Q2024			3Q2023			2Q2024			3Q2023
Return on average assets (ROA)(1)		0.94	%		0.95	%		0.96	%		—	%		—	%
Return on average equity (ROE)(1)		10.95			11.23			11.07			(0.3	)		(0.1	)
Net interest margin(1)		2.95			2.96			3.38			—			(0.4	)
Efficiency ratio		61.31			59.81			57.92			1.5			3.4
Total risk-based capital ratio		12.79	%		13.26	%		13.31	%		(0.5	)%		(0.5	)%
Tier 1 risk-based capital ratio		11.57			12.01			12.09			(0.4	)		(0.5	)
Common equity tier 1 ratio		11.57			12.01			12.09			(0.4	)		(0.5	)
Leverage ratio		9.30			9.28			9.63			—			(0.3	)

(1)

Annualized.

CONSOLIDATED STATEMENTS OF INCOME (unaudited)

($ in thousands, except share and per share data)		For the Nine Months Ended
		3Q2024			3Q2023			% Change
Interest income
Interest and fees on loans		$	92,632		$	81,549		13.6	%
Interest on available-for-sale debt securities			4,676			4,647		0.6
Other interest income			5,261			3,686		42.7
Total interest income			102,569			89,882		14.1
Interest expense
Interest on deposits			50,939			35,308		44.3
Interest on borrowings			2,951			2,117		39.4
Total interest expense			53,890			37,425		44.0
Net interest income			48,679			52,457		(7.2	)
Provision for credit losses			1,210			1,021		18.5
Net interest income after provision for credit losses			47,469			51,436		(7.7	)
Noninterest income
Service charges on deposits			2,294			1,566		46.5	%
Loan servicing fees, net of amortization			2,040			1,909		6.9
Gain on sale of loans			6,116			5,847		4.6
Other income			1,560			1,179		32.3
Total noninterest income			12,010			10,501		14.4
Noninterest expense
Salaries and employee benefits			23,440			21,947		6.8
Occupancy and equipment			4,991			4,874		2.4
Data processing and communication			1,651			1,465		12.7
Professional fees			1,147			1,180		(2.8	)
FDIC insurance and regulatory assessments			1,143			1,220		(6.3	)
Promotion and advertising			451			528		(14.6	)
Directors’ fees			489			535		(8.6	)
Foundation donation and other contributions			1,628			1,876		(13.2	)
Other expenses			2,126			2,118		0.4
Total noninterest expense			37,066			35,743		3.7
Income before income tax expense			22,413			26,194		(14.4	)
Income tax expense			6,315			7,448		(15.2	)
Net income		$	16,098		$	18,746		(14.1	)%
Book value per share		$	13.75		$	12.17		13.0	%
Earnings per share - basic			1.06			1.21		(12.4	)
Earnings per share - diluted			1.06			1.21		(12.4	)
Shares of common stock outstanding, at period end			14,811,671			15,149,203		(2.2	)%
Weighted average shares:
- Basic			14,890,479			15,158,365		(1.8	)%
- Diluted			14,890,479			15,169,794		(1.8	)

KEY RATIOS

		For the Nine Months Ended
		3Q2024			3Q2023			% Change
Return on average assets (ROA)(1)		0.95	%		1.18	%		(0.2	)%
Return on average equity (ROE)(1)		11.00			13.69			(2.7	)
Net interest margin(1)		2.99			3.45			(0.5	)
Efficiency ratio		61.08			56.77			4.3
Total risk-based capital ratio		12.79	%		13.31	%		(0.5	)%
Tier 1 risk-based capital ratio		11.57			12.09			(0.5	)
Common equity tier 1 ratio		11.57			12.09			(0.5	)
Leverage ratio		9.30			9.63			(0.3	)

(1)

Annualized.

ASSET QUALITY

($ in thousands)		As of and For the Three Months Ended
		3Q2024				2Q2024				3Q2023
Nonaccrual loans(1)		$	3,620			$	4,389			$	4,211
Loans 90 days or more past due, accruing			—				—				—
Nonperforming loans			3,620				4,389				4,211
OREO			1,237				1,237				—
Nonperforming assets		$	4,857			$	5,626			$	4,211
Criticized loans by risk categories:
Special mention loans		$	4,540			$	3,339			$	3,651
Classified loans(1)(2)			11,960				13,089				10,139
Total criticized loans		$	16,500			$	16,428			$	13,790
Criticized loans by loan type:
CRE loans		$	5,249			$	5,896			$	5,130
SBA loans			10,144				9,771				6,169
C&I loans			1,107				550				—
Home mortgage loans			—				211				2,491
Total criticized loans		$	16,500			$	16,428			$	13,790
Nonperforming loans / gross loans			0.19	%			0.23	%			0.24	%
Nonperforming assets / gross loans plus OREO			0.25				0.30				0.24
Nonperforming assets / total assets			0.20				0.25				0.20
Classified loans / gross loans			0.62				0.70				0.58
Criticized loans / gross loans			0.85				0.88				0.78
Allowance for credit losses ratios:
As a % of gross loans			1.19	%			1.22	%			1.23	%
As a % of nonperforming loans			634				519				513
As a % of nonperforming assets			473				405				513
As a % of classified loans			192				174				213
As a % of criticized loans			139				139				157
Net charge-offs (recoveries)		$	34			$	(4	)		$	488
Net charge-offs (recoveries)(3) to average gross loans(4)			0.01	%			(0.00	)%			0.11	%

(1)		Excludes the guaranteed portion of SBA loans that are in liquidation totaling $11.1 million, $3.5 million and $5.2 million as of September 30, 2024, June 30, 2024 and September 30, 2023, respectively.
(2)		Consists of substandard, doubtful and loss categories.
(3)		Annualized.
(4)		Includes loans held for sale.

($ in thousands)		3Q2024			2Q2024			3Q2023
Accruing delinquent loans 30-89 days past due
30-59 days		$	4,095		$	3,774		$	5,979
60-89 days			6,211			2,878			2,377
Total		$	10,306		$	6,652		$	8,356

AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS

		For the Three Months Ended
		3Q2024									2Q2024									3Q2023
($ 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		$	109,003		$	1,474		5.29	%		$	135,984		$	1,847		5.37	%		$	82,752		$	1,116		5.28	%
Federal funds sold and other investments			16,432			314		7.65				16,307			315		7.72				16,176			301		7.44
Available-for-sale debt securities, at fair value			199,211			1,626		3.26				195,512			1,590		3.25				199,205			1,519		3.05
CRE loans			944,818			14,759		6.21				908,073			13,742		6.09				856,911			12,207		5.65
SBA loans			270,282			7,107		10.46				259,649			7,116		11.02				248,960			7,303		11.64
C&I loans			187,163			3,642		7.74				172,481			3,367		7.85				117,578			2,340		7.90
Home mortgage loans			503,148			6,364		5.06				501,862			6,348		5.06				516,465			6,393		4.95
Consumer loans			541			13		9.37				1,219			32		10.44				274			7		10.01
Loans(2)			1,905,952			31,885		6.66				1,843,284			30,605		6.67				1,740,188			28,250		6.45
Total interest-earning assets			2,230,598			35,299		6.30				2,191,087			34,357		6.29				2,038,321			31,186		6.08
Noninterest-earning assets			88,747									89,446									84,580
Total assets		$	2,319,345								$	2,280,533								$	2,122,901
Interest-bearing liabilities:
Money market deposits and others		$	343,429		$	3,601		4.17	%		$	338,554		$	3,494		4.15	%		$	352,424		$	3,487		3.93	%
Time deposits			1,127,078			14,320		5.05				1,102,587			13,849		5.05				869,675			9,519		4.34
Total interest-bearing deposits			1,470,507			17,921		4.85				1,441,141			17,343		4.84				1,222,099			13,006		4.22
Borrowings			80,326			872		4.32				77,314			820		4.27				79,891			867		4.31
Total interest-bearing liabilities			1,550,833			18,793		4.82				1,518,455			18,163		4.81				1,301,990			13,873		4.23
Noninterest-bearing liabilities:
Noninterest-bearing deposits			528,126									529,179									599,262
Other noninterest-bearing liabilities			41,892									39,301									36,620
Total noninterest-bearing liabilities			570,018									568,480									635,882
Shareholders’ equity			198,494									193,598									185,029
Total liabilities and shareholders’ equity		$	2,319,345									2,280,533									2,122,901
Net interest income / interest rate spreads					$	16,506		1.48	%					$	16,194		1.48	%					$	17,313		1.85	%
Net interest margin								2.95	%								2.96	%								3.38	%
Cost of deposits & cost of funds:
Total deposits / cost of deposits		$	1,998,633		$	17,921		3.57	%		$	1,970,320		$	17,343		3.54	%		$	1,821,361		$	13,006		2.83	%
Total funding liabilities / cost of funds			2,078,959			18,793		3.60				2,047,634			18,163		3.57				1,901,252			13,873		2.90

(1)		Annualized.
(2)		Includes loans held for sale.

		For the Nine Months Ended
		3Q2024									3Q2023
($ 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		$	106,022		$	4,310		5.34	%		$	78,736		$	2,965		4.97	%
Federal funds sold and other investments			16,335			951		7.76				14,575			721		6.59
Available-for-sale debt securities, at fair value			195,383			4,676		3.19				206,448			4,647		3.00
CRE loans			918,149			42,230		6.14				845,340			35,209		5.57
SBA loans			263,126			21,436		10.88				262,130			21,459		10.94
C&I loans			164,927			9,679		7.84				117,850			6,772		7.68
Home mortgage loans			505,669			19,207		5.06				504,188			18,069		4.78
Consumer & other loans			1,046			80		10.10				994			40		5.40
Loans(2)			1,852,917			92,632		6.68				1,730,502			81,549		6.30
Total interest-earning assets			2,170,657			102,569		6.30				2,030,261			89,882		5.91
Noninterest-earning assets			88,594									84,044
Total assets		$	2,259,251								$	2,114,305
Interest-bearing liabilities:
Money market deposits and others		$	349,766		$	11,035		4.21	%		$	373,041		$	9,838		3.53	%
Time deposits			1,061,609			39,904		5.02				833,603			25,470		4.09
Total interest-bearing deposits			1,411,375			50,939		4.82				1,206,644			35,308		3.91
Borrowings			88,743			2,951		4.44				63,078			2,117		4.49
Total interest-bearing liabilities			1,500,118			53,890		4.80				1,269,722			37,425		3.94
Noninterest-bearing liabilities:
Noninterest-bearing deposits			523,951									628,569
Other noninterest-bearing liabilities			40,141									33,377
Total noninterest-bearing liabilities			564,092									661,946
Shareholders’ equity			195,041									182,637
Total liabilities and shareholders’ equity		$	2,259,251									2,114,305
Net interest income / interest rate spreads					$	48,679		1.50	%					$	52,457		1.97	%
Net interest margin								2.99	%								3.45	%
Cost of deposits & cost of funds:
Total deposits / cost of deposits		$	1,935,326		$	50,939		3.52	%			1,835,213		$	35,308		2.57	%
Total funding liabilities / cost of funds			2,024,069			53,890		3.56				1,898,291			37,425		2.64

(1)		Annualized.
(2)		Includes loans held for sale.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241024516652/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 (OPBK) net income for Q3 2024?

OP Bancorp reported net income of $5.4 million for Q3 2024, unchanged from Q2 2024.

What was OP Bancorp's (OPBK) earnings per share in Q3 2024?

OP Bancorp's diluted earnings per share was $0.36 in Q3 2024, unchanged from Q2 2024.

How much did OP Bancorp's (OPBK) deposits grow in Q3 2024?

Total deposits increased 6.4% to $2.06 billion in Q3 2024 compared to $1.94 billion in Q2 2024.

What was OP Bancorp's (OPBK) net interest margin in Q3 2024?

OP Bancorp's net interest margin was 2.95% in Q3 2024, slightly down from 2.96% in Q2 2024.