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

Oct 24 2024 21:31 BST

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)--Oct. 24, 2024-- 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.
($ in thousands, except per share data)	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.
($ in thousands)	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				Yield Change 3Q2024 vs.
	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					Yield Change 3Q2024 vs.
	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
($ in thousands)	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.
($ in thousands)	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.
($ in thousands)	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.
($ in thousands)	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.
($ in thousands)	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
($ in thousands)	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.
($ in thousands)	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.
($ in thousands)	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				% Change 3Q2024 vs.
	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.
OP Bancorp	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.
($ in thousands)	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.
($ in thousands, except share and per share data)	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
($ in thousands, except share and per share data)	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
($ in thousands)	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