OP Bancorp Reports Net Income for 2024 Third Quarter of $5.4 Million and Diluted Earnings Per Share of $0.36
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.
OP Bancorp ha riportato un utile netto di $5.4 milioni e utili per azione diluiti di $0.36 per il terzo trimestre del 2024, invariato rispetto al secondo trimestre del 2024. Gli attivi totali sono aumentati del 4.2% a $2.39 miliardi, con prestiti lordi in crescita del 3.3% a $1.93 miliardi e depositi in aumento del 6.4% a $2.06 miliardi. Il reddito netto da interessi è cresciuto dell'1.9% a $16.5 milioni, mentre il margine di interesse netto è leggermente diminuito al 2.95%. La qualità del credito è rimasta forte con prestiti non performing sui prestiti lordi allo 0.19%. La banca ha mantenuto uno stato ben capitalizzato con un rapporto CET1 dell'11.57% e ha aumentato il valore contabile per azione a $13.75.
OP Bancorp reportó un ingreso neto de $5.4 millones y una ganancia por acción diluida de $0.36 para el tercer trimestre de 2024, sin cambios respecto al segundo trimestre de 2024. Los activos totales aumentaron un 4.2% a $2.39 mil millones, con préstamos brutos en aumento del 3.3% a $1.93 mil millones y depósitos creciendo un 6.4% a $2.06 mil millones. Los ingresos netos por intereses crecieron un 1.9% a $16.5 millones, mientras que el margen de interés neto disminuyó ligeramente al 2.95%. La calidad crediticia se mantuvo fuerte con préstamos no rentables sobre los préstamos brutos en 0.19%. El banco mantuvo un estado de bien capitalizado con una relación CET1 del 11.57% y aumentó el valor contable por acción a $13.75.
OP Bancorp는 2024년 3분기에 순이익 $5.4 백만과 희석 주당순이익 $0.36을 보고했으며, 이는 2024년 2분기와 동일합니다. 총 자산은 $2.39억으로 4.2% 증가했으며, 총 대출은 $1.93억으로 3.3% 증가하고, 예금은 $2.06억으로 6.4% 증가했습니다. 순이자 수익은 $16.5 백만으로 1.9% 증가했으나, 순이자 마진은 2.95%로 약간 감소했습니다. 신용 품질은 여전히 탄탄하며, 비수익 대출 비율은 총 대출의 0.19%입니다. 은행은 CET1 비율이 11.57%로 잘 자본화된 상태를 유지했으며, 주당 장부 가치는 $13.75로 증가했습니다.
OP Bancorp a rapporté un revenu net de $5.4 millions et un bénéfice par action dilué de $0.36 pour le troisième trimestre 2024, inchangé par rapport au deuxième trimestre 2024. Les actifs totaux ont augmenté de 4.2% pour atteindre $2.39 milliards, avec des prêts bruts en hausse de 3.3% à $1.93 milliards et des dépôts en hausse de 6.4% à $2.06 milliards. Le revenu net d'intérêts a augmenté de 1.9% à $16.5 millions, tandis que la marge d'intérêts nette a légèrement diminué à 2.95%. La qualité du crédit est restée solide avec un ratio de prêts non performants sur prêts bruts de 0.19%. La banque a maintenu un statut bien capitalisé avec un ratio CET1 de 11.57% et a augmenté la valeur comptable par action à $13.75.
OP Bancorp meldete für das 3. Quartal 2024 ein Nettogewinn von $5.4 Millionen und verwässerte Gewinne je Aktie von $0.36, unverändert im Vergleich zum 2. Quartal 2024. Die Gesamtvermögen stiegen um 4.2% auf $2.39 Milliarden, wobei die Bruttokredite um 3.3% auf $1.93 Milliarden zugenommen haben und die Einlagen um 6.4% auf $2.06 Milliarden wachsen konnten. Die Nettozinserträge stiegen um 1.9% auf $16.5 Millionen, während die Nettomarge leicht auf 2.95% sank. Die Kreditqualität blieb stark, mit einem Anteil notleidender Kredite an den Bruttokrediten von 0.19%. Die Bank behauptete ihren gut kapitalisierten Status mit einer CET1-Quote von 11.57% und erhöhte den Buchwert je Aktie auf $13.75.
- 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
- 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
OP Bancorp's Q3 2024 results show stable performance with some mixed signals. Net income remained flat at
The bank's net interest margin slightly compressed to
Capital levels remain strong with a CET1 ratio of
The credit profile shows encouraging trends with the allowance for credit losses to gross loans at
Net charge-offs remain minimal at
2024 Third Quarter Highlights compared with 2024 Second Quarter:
-
Financial Results:
-
Net income of
$5.4 million $5.4 million -
Diluted earnings per share of
$0.36 $0.36 -
Net interest income of
$16.5 million $16.2 million -
Net interest margin of
2.95% , compared to2.96% -
Provision for credit losses of
$448 thousand $617 thousand -
Total assets of
$2.39 billion 4.2% increase compared to$2.29 billion -
Gross loans of
$1.93 billion 3.3% increase compared to$1.87 billion -
Total deposits of
$2.06 billion 6.4% increase compared to$1.94 billion
-
Net income of
-
Credit Quality:
-
Allowance for credit losses to gross loans of
1.19% , compared to1.22% -
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 to0.36% -
Nonperforming loans to gross loans of
0.19% , compared to0.23% -
Criticized loans(3) to gross loans of
0.85% , compared to0.88%
-
Allowance for credit losses to gross loans of
-
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 $13.23 -
Repurchased 4,610 shares of common stock at an average price of
$10.09 -
Paid quarterly cash dividend of
$0.12
-
Remained well-capitalized with a Common Equity Tier 1 (“CET1”) ratio of
___________________________________________________________
(1) Annualized.
(2) Includes loans held for sale.
(3) Includes special mention, substandard, doubtful, and loss categories.
Min Kim, President and Chief Executive Officer:
“We continued to grow our loans and deposits at double digit annualized rates in this quarter while maintaining ample liquidity, stable net interest margin, and strong credit quality. As the Fed's easing cycle began in the quarter, the pressure on funding cost and net interest margin is diminishing, and we believe we are well positioned to prolong our growth and performance to achieve our long term strategic goals,” said Min Kim, President and Chief Executive.
SELECTED FINANCIAL HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
||||||||
($ 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
|
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|
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|
|
|
|||||
($ 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 |
)% |
|
|
|
|
|
|
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|||||
|
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|
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|
||||||||
($ 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 |
|
(3) |
Includes prepayment penalty income of |
Third Quarter 2024 vs. Second Quarter 2024
Net interest income increased
-
A
$1.3 million $62.7 million 3.4% , increase in average balance. -
A
$578 thousand $29.4 million 2.0% , increase in average balance. -
A
$373 thousand $27.0 million 19.8% , decrease in average balance.
Third Quarter 2024 vs. Third Quarter 2023
Net interest income decreased
-
A
$4.9 million $248.4 million 20.3% , increase in average balance and a 63 basis point increase in average cost. -
A
$3.6 million $165.8 million 9.5% , increase in average balance and a 21 basis point increase in average yield. -
A
$358 thousand $26.3 million 31.7% , increase in average balance.
Provision for Credit Losses
|
|
|
|
|
|
|
||||
($ 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
Provision for credit losses on loans of
Provision for credit losses on off-balance sheet exposure of
Third Quarter 2024 vs. Third Quarter 2023
The Company recorded
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
-
Loan servicing fees, net of amortization, were
$693 thousand $118 thousand $575 thousand -
Service charges on deposits were
$889 thousand $96 thousand $793 thousand -
Gain on sale of loans was
$2.1 million $237 thousand $2.3 million $35.6 million 7.30% , compared to the sale of$32.1 million 8.58% .
Third Quarter 2024 vs. Third Quarter 2023
Noninterest income increased
-
Gain on sale of loans was
$2.1 million $909 thousand $1.2 million $35.6 million 7.30% , compared to the sale of$23.4 million 6.50% . -
Service charges on deposits were
$889 thousand $314 thousand $575 thousand -
Loan servicing fees were
$693 thousand $225 thousand $468 thousand
Noninterest Expense
|
|
|
|
|
|
|
|
|
|
|
|||||
($ 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
-
Salaries and employee benefits increased
$463 thousand -
Data processing and communication increased
$104 thousand
Third Quarter 2024 vs. Third Quarter 2023
Noninterest expense increased
-
Salaries and employee benefits increased
$1.0 million -
Data processing and communication increased
$265 thousand
Income Tax Expense
Third Quarter 2024 vs. Second Quarter 2024
Income tax expense was
Third Quarter 2024 vs. Third Quarter 2023
Income tax expense was
BALANCE SHEET HIGHLIGHTS
Loans
|
|
|
|
|
|
|
|
|
|
|
|||||
($ 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
As of September 30, 2024 vs. September 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 |
||||||||||||||||
|
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 |
|
(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
$10.3 million 0.53% of gross loans as of September 30, 2024, compared with$6.7 million 0.36% as of June 30, 2024. The increase was largely due to four home mortgage loans totaling$2.4 million $1.3 million -
Nonperforming loans were
$3.6 million 0.19% of gross loans as of September 30, 2024, compared with$4.4 million 0.23% as of June 30, 2024. -
Nonperforming assets were
$4.9 million 0.20% of total assets as of September 30, 2024, compared with$5.6 million 0.25% as of June 30, 2024. OREO remained the same at$1.2 million 90% guaranteed by SBA. -
Criticized loans were
$16.5 million 0.85% of gross loans as of September 30, 2024, compared with$16.4 million 0.88% as of June 30, 2024. -
Net charge-offs were
$34 thousand 0.01% of average loans in the third quarter of 2024, compared to net recoveries of$4 thousand 0.00% of average loans in the second quarter of 2024 and net recoveries of$488 thousand 0.11% of average loans in the third quarter of 2023.
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
($ 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
As of September 30, 2024 vs. September 30, 2023
Total deposits were
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 |
|
$ |
205,957 |
|
|
$ |
189,693 |
|
|
$ |
87,508 |
|
|
$ |
80,133 |
|
|
$ |
1,256 |
|
|
$ |
564,547 |
|
Time deposits ( |
|
|
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
The Company also repurchased 4,610 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 |
|
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 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
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
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 |
|
|
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 |
|
(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
|
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For the Three Months Ended |
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3Q2024 |
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2Q2024 |
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3Q2023 |
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($ in thousands) |
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Average Balance |
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Interest and Fees |
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Yield/ Rate(1) |
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Average Balance |
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Interest and Fees |
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Yield/ Rate(1) |
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Average Balance |
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Interest and Fees |
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Yield/ Rate(1) |
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Interest-earning assets: |
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Interest-bearing deposits in other banks |
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$ |
109,003 |
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$ |
1,474 |
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5.29 |
% |
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$ |
135,984 |
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$ |
1,847 |
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5.37 |
% |
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$ |
82,752 |
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$ |
1,116 |
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5.28 |
% |
Federal funds sold and other investments |
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16,432 |
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314 |
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7.65 |
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16,307 |
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315 |
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7.72 |
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16,176 |
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301 |
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7.44 |
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Available-for-sale debt securities, at fair value |
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199,211 |
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1,626 |
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3.26 |
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195,512 |
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1,590 |
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3.25 |
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199,205 |
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1,519 |
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3.05 |
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CRE loans |
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944,818 |
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14,759 |
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6.21 |
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908,073 |
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13,742 |
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6.09 |
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856,911 |
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12,207 |
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5.65 |
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SBA loans |
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270,282 |
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7,107 |
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10.46 |
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259,649 |
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7,116 |
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11.02 |
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248,960 |
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7,303 |
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11.64 |
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C&I loans |
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187,163 |
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3,642 |
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7.74 |
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172,481 |
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3,367 |
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7.85 |
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117,578 |
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2,340 |
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7.90 |
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Home mortgage loans |
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503,148 |
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6,364 |
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5.06 |
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501,862 |
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6,348 |
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5.06 |
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516,465 |
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6,393 |
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4.95 |
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Consumer loans |
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541 |
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13 |
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9.37 |
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1,219 |
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32 |
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10.44 |
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274 |
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7 |
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10.01 |
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Loans(2) |
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1,905,952 |
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31,885 |
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6.66 |
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1,843,284 |
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30,605 |
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6.67 |
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1,740,188 |
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28,250 |
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6.45 |
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Total interest-earning assets |
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2,230,598 |
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35,299 |
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6.30 |
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2,191,087 |
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34,357 |
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6.29 |
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2,038,321 |
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31,186 |
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6.08 |
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Noninterest-earning assets |
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88,747 |
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89,446 |
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84,580 |
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Total assets |
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$ |
2,319,345 |
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$ |
2,280,533 |
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$ |
2,122,901 |
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Interest-bearing liabilities: |
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Money market deposits and others |
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$ |
343,429 |
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$ |
3,601 |
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4.17 |
% |
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$ |
338,554 |
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$ |
3,494 |
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4.15 |
% |
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$ |
352,424 |
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$ |
3,487 |
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3.93 |
% |
Time deposits |
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1,127,078 |
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14,320 |
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5.05 |
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1,102,587 |
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13,849 |
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5.05 |
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869,675 |
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9,519 |
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4.34 |
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Total interest-bearing deposits |
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1,470,507 |
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17,921 |
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4.85 |
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1,441,141 |
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17,343 |
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4.84 |
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1,222,099 |
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13,006 |
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4.22 |
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Borrowings |
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80,326 |
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872 |
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4.32 |
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77,314 |
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820 |
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4.27 |
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79,891 |
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867 |
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4.31 |
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Total interest-bearing liabilities |
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1,550,833 |
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18,793 |
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4.82 |
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1,518,455 |
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18,163 |
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4.81 |
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1,301,990 |
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13,873 |
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4.23 |
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Noninterest-bearing liabilities: |
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Noninterest-bearing deposits |
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528,126 |
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529,179 |
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599,262 |
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Other noninterest-bearing liabilities |
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41,892 |
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39,301 |
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36,620 |
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Total noninterest-bearing liabilities |
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570,018 |
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568,480 |
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635,882 |
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Shareholders’ equity |
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198,494 |
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193,598 |
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185,029 |
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Total liabilities and shareholders’ equity |
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$ |
2,319,345 |
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2,280,533 |
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2,122,901 |
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Net interest income / interest rate spreads |
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$ |
16,506 |
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1.48 |
% |
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$ |
16,194 |
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1.48 |
% |
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$ |
17,313 |
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1.85 |
% |
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Net interest margin |
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2.95 |
% |
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2.96 |
% |
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3.38 |
% |
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Cost of deposits & cost of funds: |
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Total deposits / cost of deposits |
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$ |
1,998,633 |
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$ |
17,921 |
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3.57 |
% |
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$ |
1,970,320 |
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$ |
17,343 |
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3.54 |
% |
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$ |
1,821,361 |
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$ |
13,006 |
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2.83 |
% |
Total funding liabilities / cost of funds |
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2,078,959 |
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18,793 |
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3.60 |
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2,047,634 |
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18,163 |
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3.57 |
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1,901,252 |
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13,873 |
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2.90 |
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(1) |
Annualized. |
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(2) |
Includes loans held for sale. |
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For the Nine Months Ended |
||||||||||||||||
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|
3Q2024 |
|
3Q2023 |
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($ in thousands) |
|
Average Balance |
|
Interest and Fees |
|
Yield/ Rate(1) |
|
Average Balance |
|
Interest and Fees |
|
Yield/ Rate(1) |
||||||
Interest-earning assets: |
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Interest-bearing deposits in other banks |
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$ |
106,022 |
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$ |
4,310 |
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5.34 |
% |
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$ |
78,736 |
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$ |
2,965 |
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4.97 |
% |
Federal funds sold and other investments |
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16,335 |
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|
951 |
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7.76 |
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14,575 |
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721 |
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6.59 |
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Available-for-sale debt securities, at fair value |
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195,383 |
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4,676 |
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3.19 |
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206,448 |
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4,647 |
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3.00 |
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CRE loans |
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918,149 |
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42,230 |
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6.14 |
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845,340 |
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35,209 |
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5.57 |
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SBA loans |
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263,126 |
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21,436 |
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10.88 |
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262,130 |
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21,459 |
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10.94 |
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C&I loans |
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164,927 |
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9,679 |
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7.84 |
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117,850 |
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6,772 |
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7.68 |
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Home mortgage loans |
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505,669 |
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19,207 |
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5.06 |
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504,188 |
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18,069 |
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4.78 |
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Consumer & other loans |
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1,046 |
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|
80 |
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10.10 |
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|
994 |
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40 |
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5.40 |
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Loans(2) |
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1,852,917 |
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92,632 |
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6.68 |
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1,730,502 |
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81,549 |
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6.30 |
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Total interest-earning assets |
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2,170,657 |
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102,569 |
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6.30 |
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2,030,261 |
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89,882 |
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5.91 |
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Noninterest-earning assets |
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|
88,594 |
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|
84,044 |
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Total assets |
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$ |
2,259,251 |
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$ |
2,114,305 |
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Interest-bearing liabilities: |
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Money market deposits and others |
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$ |
349,766 |
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$ |
11,035 |
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4.21 |
% |
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$ |
373,041 |
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$ |
9,838 |
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3.53 |
% |
Time deposits |
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|
1,061,609 |
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39,904 |
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5.02 |
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|
833,603 |
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|
25,470 |
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4.09 |
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Total interest-bearing deposits |
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1,411,375 |
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50,939 |
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4.82 |
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1,206,644 |
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35,308 |
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3.91 |
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Borrowings |
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88,743 |
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2,951 |
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4.44 |
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63,078 |
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|
2,117 |
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4.49 |
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Total interest-bearing liabilities |
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1,500,118 |
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53,890 |
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4.80 |
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1,269,722 |
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37,425 |
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3.94 |
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Noninterest-bearing liabilities: |
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Noninterest-bearing deposits |
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523,951 |
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628,569 |
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Other noninterest-bearing liabilities |
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|
40,141 |
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|
33,377 |
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Total noninterest-bearing liabilities |
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|
564,092 |
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|
661,946 |
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Shareholders’ equity |
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|
195,041 |
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|
182,637 |
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Total liabilities and shareholders’ equity |
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$ |
2,259,251 |
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|
|
|
|
|
2,114,305 |
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Net interest income / interest rate spreads |
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$ |
48,679 |
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1.50 |
% |
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$ |
52,457 |
|
1.97 |
% |
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Net interest margin |
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|
|
|
2.99 |
% |
|
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|
|
3.45 |
% |
||||
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Cost of deposits & cost of funds: |
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Total deposits / cost of deposits |
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$ |
1,935,326 |
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$ |
50,939 |
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3.52 |
% |
|
|
1,835,213 |
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$ |
35,308 |
|
2.57 |
% |
Total funding liabilities / cost of funds |
|
|
2,024,069 |
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|
53,890 |
|
3.56 |
|
|
|
1,898,291 |
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|
37,425 |
|
2.64 |
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(1) |
Annualized. |
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(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?
What was OP Bancorp's (OPBK) earnings per share in Q3 2024?
How much did OP Bancorp's (OPBK) deposits grow in Q3 2024?
What was OP Bancorp's (OPBK) net interest margin in Q3 2024?
