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

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

Min Kim, President and Chief Executive Officer:

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

SELECTED FINANCIAL HIGHLIGHTS

 

 

 

 

 

 

 

 

 

 

 

($ in thousands, except per share data)

 

As of and For the Quarter

 

% Change 3Q2024 vs.

 

3Q2024

 

2Q2024

 

3Q2023

 

2Q2024

 

3Q2023

Selected Income Statement Data:

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

16,506

 

 

$

16,194

 

 

$

17,313

 

 

1.9

%

 

(4.7

)%

Provision for credit losses

 

 

448

 

 

 

617

 

 

 

1,359

 

 

(27.4

)

 

(67.0

)

Noninterest income

 

 

4,240

 

 

 

4,184

 

 

 

2,601

 

 

1.3

 

 

63.0

 

Noninterest expense

 

 

12,720

 

 

 

12,189

 

 

 

11,535

 

 

4.4

 

 

10.3

 

Income tax expense

 

 

2,142

 

 

 

2,136

 

 

 

1,899

 

 

0.3

 

 

12.8

 

Net income

 

 

5,436

 

 

 

5,436

 

 

 

5,121

 

 

 

 

6.2

 

Diluted earnings per share

 

 

0.36

 

 

 

0.36

 

 

 

0.33

 

 

 

 

9.1

 

Selected Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

Gross loans

 

$

1,931,007

 

 

$

1,870,106

 

 

$

1,759,525

 

 

3.3

%

 

9.7

%

Total deposits

 

 

2,064,603

 

 

 

1,940,821

 

 

 

1,825,171

 

 

6.4

 

 

13.1

 

Total assets

 

 

2,387,980

 

 

 

2,290,680

 

 

 

2,142,675

 

 

4.2

 

 

11.4

 

Average loans(1)

 

 

1,905,952

 

 

 

1,843,284

 

 

 

1,740,188

 

 

3.4

 

 

9.5

 

Average deposits

 

 

1,998,633

 

 

 

1,970,320

 

 

 

1,821,361

 

 

1.4

 

 

9.7

 

Credit Quality:

 

 

 

 

 

 

 

 

 

 

Nonperforming loans

 

$

3,620

 

 

$

4,389

 

 

$

4,211

 

 

(17.5

)%

 

(14.0

)%

Nonperforming loans to gross loans

 

 

0.19

%

 

 

0.23

%

 

 

0.24

%

 

(0.04

)

 

(0.05

)

Criticized loans(2) to gross loans

 

 

0.85

 

 

 

0.88

 

 

 

0.78

 

 

(0.03

)

 

0.07

 

Net charge-offs (recoveries)(3) to average gross loans(1)

 

 

0.01

 

 

 

(0.00

)

 

 

0.11

 

 

0.01

 

 

(0.10

)

Allowance for credit losses to gross loans

 

 

1.19

 

 

 

1.22

 

 

 

1.23

 

 

(0.03

)

 

(0.04

)

Allowance for credit losses to nonperforming loans

 

 

634

 

 

 

519

 

 

 

513

 

 

115.00

 

 

121.00

 

Financial Ratios:

 

 

 

 

 

 

 

 

 

 

Return on average assets(3)

 

 

0.94

%

 

 

0.95

%

 

 

0.96

%

 

(0.01

)%

 

(0.02

)%

Return on average equity(3)

 

 

10.95

 

 

 

11.23

 

 

 

11.07

 

 

(0.28

)

 

(0.12

)

Net interest margin(3)

 

 

2.95

 

 

 

2.96

 

 

 

3.38

 

 

(0.01

)

 

(0.43

)

Efficiency ratio(4)

 

 

61.31

 

 

 

59.81

 

 

 

57.92

 

 

1.50

 

 

3.39

 

Common equity tier 1 capital ratio

 

 

11.57

 

 

 

12.01

 

 

 

12.09

 

 

(0.44

)

 

(0.52

)

Leverage ratio

 

 

9.30

 

 

 

9.28

 

 

 

9.63

 

 

0.02

 

 

(0.33

)

Book value per common share

 

$

13.75

 

 

$

13.23

 

 

$

12.17

 

 

3.9

 

 

13.0

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Includes loans held for sale.

(2)

Includes special mention, substandard, doubtful, and loss categories.

(3)

Annualized.

(4)

Represents noninterest expense divided by the sum of net interest income and noninterest income.

INCOME STATEMENT HIGHLIGHTS

Net Interest Income and Net Interest Margin

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

For the Three Months Ended

 

% Change 3Q2024 vs.

 

3Q2024

 

2Q2024

 

3Q2023

 

2Q2024

 

3Q2023

Interest Income

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

35,299

 

$

34,357

 

$

31,186

 

2.7

%

 

13.2

%

Interest expense

 

 

18,793

 

 

18,163

 

 

13,873

 

3.5

 

 

35.5

 

Net interest income

 

$

16,506

 

$

16,194

 

$

17,313

 

1.9

%

 

(4.7

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

For the Three Months Ended

 

Yield Change 3Q2024 vs.

 

3Q2024

 

2Q2024

 

3Q2023

 

 

Interest

and Fees

 

Yield/Rate(1)

 

Interest

and Fees

 

Yield/Rate(1)

 

Interest

and Fees

 

Yield/Rate(1)

 

2Q2024

 

3Q2023

Interest-earning Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

31,885

 

6.66

%

 

$

30,605

 

6.67

%

 

$

28,250

 

6.45

%

 

(0.01

)%

 

0.21

%

Total interest-earning assets

 

 

35,299

 

6.30

 

 

 

34,357

 

6.29

 

 

 

31,186

 

6.08

 

 

0.01

 

 

0.22

 

Interest-bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

 

17,921

 

4.85

 

 

 

17,343

 

4.84

 

 

 

13,006

 

4.22

 

 

0.01

 

 

0.63

 

Total interest-bearing liabilities

 

 

18,793

 

4.82

 

 

 

18,163

 

4.81

 

 

 

13,873

 

4.23

 

 

0.01

 

 

0.59

 

Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income / interest rate spreads

 

 

16,506

 

1.48

 

 

 

16,194

 

1.48

 

 

 

17,313

 

1.85

 

 

 

 

(0.37

)

Net interest margin

 

 

 

2.95

 

 

 

 

2.96

 

 

 

 

3.38

 

 

(0.01

)

 

(0.43

)

Total deposits / cost of deposits

 

 

17,921

 

3.57

 

 

 

17,343

 

3.54

 

 

 

13,006

 

2.83

 

 

0.03

 

 

0.74

 

Total funding liabilities / cost of funds

 

 

18,793

 

3.60

 

 

 

18,163

 

3.57

 

 

 

13,873

 

2.90

 

 

0.03

 

 

0.70

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Annualized.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

For the Three Months Ended

 

Yield Change 3Q2024 vs.

 

3Q2024

 

2Q2024

 

3Q2023

 

 

Interest

& Fees

 

Yield(1)

 

Interest

& Fees

 

Yield(1)

 

Interest

& Fees

 

Yield(1)

 

2Q2024

 

3Q2023

Loan Yield Component:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contractual interest rate

 

$

31,182

 

 

6.52

%

 

$

29,719

 

 

6.48

%

 

$

27,319

 

 

6.24

%

 

0.04

%

 

0.28

%

Accretion of SBA loan discount(2)

 

 

918

 

 

0.19

 

 

 

1,087

 

 

0.24

 

 

 

1,263

 

 

0.29

 

 

(0.05

)

 

(0.10

)

Amortization of net deferred fees

 

 

23

 

 

 

 

 

(44

)

 

(0.01

)

 

 

1

 

 

 

 

0.01

 

 

 

Amortization of premium

 

 

(487

)

 

(0.10

)

 

 

(396

)

 

(0.09

)

 

 

(445

)

 

(0.10

)

 

(0.01

)

 

 

Net interest recognized on nonaccrual loans

 

 

(61

)

 

(0.01

)

 

 

(3

)

 

0.00

 

 

 

(26

)

 

(0.01

)

 

(0.01

)

 

 

Prepayment penalty income and other fees(3)

 

 

310

 

 

0.06

 

 

 

242

 

 

0.05

 

 

 

138

 

 

0.03

 

 

0.01

 

 

0.03

 

Yield on loans

 

$

31,885

 

 

6.66

%

 

$

30,605

 

 

6.67

%

 

$

28,250

 

 

6.45

%

 

(0.01

)%

 

0.21

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Annualized.

(2)

Includes discount accretion from SBA loan payoffs of $426 thousand, $564 thousand and $666 thousand for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively.

(3)

Includes prepayment penalty income of $114 thousand and $26 thousand for the three months ended September 30, 2024 and June 30, 2024, respectively, from Commercial Real Estate (“CRE”) loans.

Third Quarter 2024 vs. Second Quarter 2024

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

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

Third Quarter 2024 vs. Third Quarter 2023

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

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

Provision for Credit Losses

 

 

 

 

 

 

 

($ in thousands)

 

For the Three Months Ended

 

3Q2024

 

2Q2024

 

3Q2023

Provision for credit losses on loans

 

$

234

 

$

627

 

 

$

1,303

Provision for (reversal of) credit losses on off-balance sheet exposure

 

 

214

 

 

(10

)

 

 

56

Total provision for credit losses

 

$

448

 

$

617

 

 

$

1,359

 

 

 

 

 

 

 

Third Quarter 2024 vs. Second Quarter 2024

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

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

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

Third Quarter 2024 vs. Third Quarter 2023

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

Noninterest Income

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

For the Three Months Ended

 

% Change 3Q2024 vs.

 

3Q2024

 

2Q2024

 

3Q2023

 

2Q2024

 

3Q2023

Noninterest Income

 

 

 

 

 

 

 

 

 

 

Service charges on deposits

 

$

889

 

$

793

 

$

575

 

12.1

%

 

54.6

%

Loan servicing fees, net of amortization

 

 

693

 

 

575

 

 

468

 

20.5

 

 

48.1

 

Gain on sale of loans

 

 

2,088

 

 

2,325

 

 

1,179

 

(10.2

)

 

77.1

 

Other income

 

 

570

 

 

491

 

 

379

 

16.1

 

 

50.4

 

Total noninterest income

 

$

4,240

 

$

4,184

 

$

2,601

 

1.3

%

 

63.0

%

 

 

 

 

 

 

 

 

 

 

 

Third Quarter 2024 vs. Second Quarter 2024

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

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

Third Quarter 2024 vs. Third Quarter 2023

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

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

Noninterest Expense

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

For the Three Months Ended

 

% Change 3Q2024 vs.

 

3Q2024

 

2Q2024

 

3Q2023

 

2Q2024

 

3Q2023

Noninterest Expense

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

$

8,031

 

$

7,568

 

$

7,014

 

6.1

%

 

14.5

%

Occupancy and equipment

 

 

1,676

 

 

1,660

 

 

1,706

 

1.0

 

 

(1.8

)

Data processing and communication

 

 

634

 

 

530

 

 

369

 

19.6

 

 

71.8

 

Professional fees

 

 

346

 

 

406

 

 

440

 

(14.8

)

 

(21.4

)

FDIC insurance and regulatory assessments

 

 

391

 

 

378

 

 

333

 

3.4

 

 

17.4

 

Promotion and advertising

 

 

151

 

 

151

 

 

207

 

 

 

(27.1

)

Directors’ fees

 

 

154

 

 

178

 

 

164

 

(13.5

)

 

(6.1

)

Foundation donation and other contributions

 

 

549

 

 

539

 

 

529

 

1.9

 

 

3.8

 

Other expenses

 

 

788

 

 

779

 

 

773

 

1.2

 

 

1.9

 

Total noninterest expense

 

$

12,720

 

$

12,189

 

$

11,535

 

4.4

%

 

10.3

%

 

 

 

 

 

 

 

 

 

 

 

Third Quarter 2024 vs. Second Quarter 2024

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

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

Third Quarter 2024 vs. Third Quarter 2023

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

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

Income Tax Expense

Third Quarter 2024 vs. Second Quarter 2024

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

Third Quarter 2024 vs. Third Quarter 2023

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

BALANCE SHEET HIGHLIGHTS

Loans

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

As of

 

% Change 3Q2024 vs.

 

3Q2024

 

2Q2024

 

3Q2023

 

2Q2024

 

3Q2023

CRE loans

 

$

966,472

 

$

931,284

 

$

878,824

 

3.8

%

 

10.0

%

SBA loans

 

 

252,379

 

 

242,395

 

 

240,154

 

4.1

 

 

5.1

 

C&I loans

 

 

212,476

 

 

188,557

 

 

124,632

 

12.7

 

 

70.5

 

Home mortgage loans

 

 

499,666

 

 

506,873

 

 

515,789

 

(1.4

)

 

(3.1

)

Consumer & other loans

 

 

14

 

 

997

 

 

126

 

(98.6

)

 

(88.9

)

Gross loans

 

$

1,931,007

 

$

1,870,106

 

$

1,759,525

 

3.3

%

 

9.7

%

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

For the Three Months Ended

 

% Change 3Q2024 vs.

 

3Q2024

 

2Q2024

 

3Q2023

 

2Q2024

 

3Q2023

CRE loans

 

$

68,525

 

$

41,990

 

$

33,222

 

63.2

%

 

106.3

%

SBA loans

 

 

46,302

 

 

24,142

 

 

39,079

 

91.8

 

 

18.5

 

C&I loans

 

 

27,771

 

 

21,271

 

 

14,617

 

30.6

 

 

90.0

 

Home mortgage loans

 

 

10,105

 

 

13,720

 

 

9,137

 

(26.3

)

 

10.6

 

Gross loans

 

$

152,703

 

$

101,123

 

$

96,055

 

51.0

%

 

59.0

%

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

($ in thousands)

 

For the Three Months Ended

 

3Q2024

 

2Q2024

 

3Q2023

Loan Activities:

 

 

 

 

 

 

Gross loans, beginning

 

$

1,870,106

 

 

$

1,804,987

 

 

$

1,716,197

 

New originations

 

 

152,703

 

 

 

101,123

 

 

 

96,055

 

Net line advances

 

 

(526

)

 

 

37,929

 

 

 

22,146

 

Purchases

 

 

862

 

 

 

5,559

 

 

 

6,732

 

Sales

 

 

(35,576

)

 

 

(32,102

)

 

 

(23,377

)

Paydowns

 

 

(24,798

)

 

 

(19,710

)

 

 

(22,169

)

Payoffs

 

 

(29,642

)

 

 

(36,902

)

 

 

(36,024

)

Decrease (increase) in loans held for sale

 

 

(1,674

)

 

 

9,590

 

 

 

 

Other

 

 

(448

)

 

 

(368

)

 

 

215

 

Total

 

 

60,901

 

 

 

65,119

 

 

 

43,328

 

Gross loans, ending

 

$

1,931,007

 

 

$

1,870,106

 

 

$

1,759,525

 

 

 

 

 

 

 

 

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

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

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

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

The following table presents the composition of gross loans by interest rate type accompanied with the weighted average contractual rates as of the periods indicated:

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

As of

 

3Q2024

 

2Q2024

 

3Q2023

 

%

 

Rate

 

%

 

Rate

 

%

 

Rate

Fixed rate

 

35.7

%

 

5.42

%

 

36.2

%

 

5.39

%

 

36.3

%

 

4.95

%

Hybrid rate

 

34.7

 

 

5.60

 

 

33.9

 

 

5.42

 

 

34.0

 

 

5.08

 

Variable rate

 

29.6

 

 

8.94

 

 

29.9

 

 

9.19

 

 

29.7

 

 

9.23

 

Gross loans

 

100.0

%

 

6.52

%

 

100.0

%

 

6.54

%

 

100.0

%

 

6.27

%

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table presents the maturity of gross loans by interest rate type accompanied with the weighted average contractual rates for the periods indicated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

As of September 30, 2024

 

Within One Year

 

One Year Through Five Years

 

After Five Years

 

Total

 

Amount

 

Rate

 

Amount

 

Rate

 

Amount

 

Rate

 

Amount

 

Rate

Fixed rate

 

$

191,036

 

5.96

%

 

$

282,324

 

5.27

%

 

$

216,044

 

5.13

%

 

$

689,404

 

5.42

%

Hybrid rate

 

 

2,651

 

9.25

 

 

 

211,150

 

4.39

 

 

 

456,362

 

6.14

 

 

 

670,163

 

5.60

 

Variable rate

 

 

87,435

 

8.47

 

 

 

139,453

 

8.57

 

 

 

344,552

 

9.21

 

 

 

571,440

 

8.94

 

Gross loans

 

$

281,122

 

6.77

%

 

$

632,927

 

5.71

%

 

$

1,016,958

 

6.97

%

 

$

1,931,007

 

6.52

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Credit Losses

The following table presents allowance for credit losses and provision for credit losses as of and for the periods presented:

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

As of and For the Three Months Ended

 

Change 3Q2024 vs.

 

3Q2024

 

2Q2024

 

3Q2023

 

2Q2024

 

3Q2023

Allowance for credit losses on loans, beginning

 

$

22,760

 

 

$

22,129

 

 

$

20,802

 

 

$

631

 

 

$

1,958

 

Provision for credit losses

 

 

234

 

 

 

627

 

 

 

1,303

 

 

 

(393

)

 

 

(1,069

)

Gross charge-offs

 

 

(40

)

 

 

 

 

 

(492

)

 

 

(40

)

 

 

452

 

Gross recoveries

 

 

6

 

 

 

4

 

 

 

4

 

 

 

2

 

 

 

2

 

Net (charge-offs) recoveries

 

 

(34

)

 

 

4

 

 

 

(488

)

 

 

(38

)

 

 

454

 

Allowance for credit losses on loans, ending

 

$

22,960

 

 

$

22,760

 

 

$

21,617

 

 

$

200

 

 

$

1,343

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses on off-balance sheet exposure, beginning

 

$

458

 

 

$

468

 

 

$

367

 

 

$

(10

)

 

$

91

 

Provision for (reversal of) credit losses

 

 

214

 

 

 

(10

)

 

 

56

 

 

 

224

 

 

 

158

 

Allowance for credit losses on off-balance sheet exposure, ending

 

$

672

 

 

$

458

 

 

$

423

 

 

$

214

 

 

$

249

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

As of and For the Three Months Ended

 

Change 3Q2024 vs.

 

3Q2024

 

2Q2024

 

3Q2023

 

2Q2024

 

3Q2023

Loans 30-89 days past due and still accruing

 

$

10,306

 

 

$

6,652

 

 

$

8,356

 

 

54.9

%

 

23.3

%

As a % of gross loans

 

 

0.53

%

 

 

0.36

%

 

 

0.47

%

 

0.17

 

 

0.06

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming loans(1)

 

$

3,620

 

 

$

4,389

 

 

$

4,211

 

 

(17.5

)%

 

(14.0

)%

Nonperforming assets(1)

 

 

4,857

 

 

 

5,626

 

 

 

4,211

 

 

(13.7

)

 

15.3

 

Nonperforming loans to gross loans

 

 

0.19

%

 

 

0.23

%

 

 

0.24

%

 

(0.04

)

 

(0.05

)

Nonperforming assets to total assets

 

 

0.20

 

 

 

0.25

 

 

 

0.20

 

 

(0.05

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Criticized loans(1)(2)

 

$

16,500

 

 

$

16,428

 

 

$

13,790

 

 

0.4

%

 

19.7

%

Criticized loans to gross loans

 

 

0.85

%

 

 

0.88

%

 

 

0.78

%

 

(0.03

)

 

0.07

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses ratios:

 

 

 

 

 

 

 

 

 

 

As a % of gross loans

 

 

1.19

%

 

 

1.22

%

 

 

1.23

%

 

(0.03

)%

 

(0.04

)%

As a % of nonperforming loans

 

 

634

 

 

 

519

 

 

 

513

 

 

115

 

 

121

 

As a % of nonperforming assets

 

 

473

 

 

 

405

 

 

 

513

 

 

68

 

 

(40

)

As a % of criticized loans

 

 

139

 

 

 

139

 

 

 

157

 

 

 

 

(18

)

Net charge-offs (recoveries)(3) to average gross loans(4)

 

 

0.01

 

 

 

(0.00

)

 

 

0.11

 

 

0.01

 

 

(0.10

)

 

 

 

 

 

 

 

 

 

 

 

(1)

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

(2)

Consists of special mention, substandard, doubtful and loss categories.

(3)

Annualized.

(4)

Includes loans held for sale.

Overall, the Bank continued to maintain low levels of nonperforming loans and net charge-offs. Our allowance remained strong with an allowance to gross loans ratio of 1.19%.

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

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

As of

 

% Change 3Q2024 vs.

 

3Q2024

 

2Q2024

 

3Q2023

 

 

Amount

 

%

 

Amount

 

%

 

Amount

 

%

 

2Q2024

 

3Q2023

Noninterest-bearing deposits

 

$

561,801

 

27.2

%

 

$

518,456

 

26.7

%

 

$

605,509

 

33.2

%

 

8.4

%

 

(7.2

)%

Money market deposits and others

 

 

343,188

 

16.6

 

 

 

332,137

 

17.1

 

 

 

348,869

 

19.1

 

 

3.3

 

 

(1.6

)

Time deposits

 

 

1,159,614

 

56.2

 

 

 

1,090,228

 

56.2

 

 

 

870,793

 

47.7

 

 

6.4

 

 

33.2

 

Total deposits

 

$

2,064,603

 

100.0

%

 

$

1,940,821

 

100.0

%

 

$

1,825,171

 

100.0

%

 

6.4

%

 

13.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Estimated uninsured deposits

 

$

946,406

 

45.8

%

 

$

860,419

 

44.3

%

 

$

808,776

 

44.3

%

 

10.0

%

 

17.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of September 30, 2024

($ in thousands)

 

Within Three

Months

 

Three to

Six Months

 

Six to Nine Months

 

Nine to Twelve

Months

 

After

Twelve Months

 

Total

Time deposits (greater than $250)

 

$

205,957

 

 

$

189,693

 

 

$

87,508

 

 

$

80,133

 

 

$

1,256

 

 

$

564,547

 

Time deposits ($250 or less)

 

 

261,163

 

 

 

124,315

 

 

 

97,180

 

 

 

92,585

 

 

 

19,824

 

 

 

595,067

 

Total time deposits

 

$

467,120

 

 

$

314,008

 

 

$

184,688

 

 

$

172,718

 

 

$

21,080

 

 

$

1,159,614

 

Weighted average rate

 

 

5.18

%

 

 

5.03

%

 

 

5.16

%

 

 

4.93

%

 

 

3.94

%

 

 

5.08

%

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER HIGHLIGHTS

Liquidity

The Company maintains ample access to liquidity, including highly liquid assets on our balance sheet and available unused borrowings from other financial institutions. The following table presents the Company's liquid assets and available borrowings as of dates presented:

 

 

 

 

 

($ in thousands)

 

3Q2024

 

2Q2024

 

3Q2023

Liquidity Assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

166,756

 

 

$

127,676

 

 

$

105,740

 

Available-for-sale debt securities

 

 

199,373

 

 

 

199,205

 

 

 

191,313

 

Liquid assets

 

$

366,129

 

 

$

326,881

 

 

$

297,053

 

Liquid assets to total assets

 

 

15.3

%

 

 

14.3

%

 

 

13.9

%

 

 

 

 

 

 

 

Available borrowings:

 

 

 

 

 

 

Federal Home Loan Bank—San Francisco

 

$

397,617

 

 

$

343,600

 

 

$

375,874

 

Federal Reserve Bank

 

 

207,782

 

 

 

191,421

 

 

 

186,380

 

Pacific Coast Bankers Bank

 

 

50,000

 

 

 

50,000

 

 

 

50,000

 

Zions Bank

 

 

25,000

 

 

 

25,000

 

 

 

25,000

 

First Horizon Bank

 

 

25,000

 

 

 

25,000

 

 

 

25,000

 

Total available borrowings

 

$

705,399

 

 

$

635,021

 

 

$

662,254

 

Total available borrowings to total assets

 

 

29.5

%

 

 

27.6

%

 

 

30.9

%

 

 

 

 

 

 

 

Liquid assets and available borrowings to total deposits

 

 

51.9

%

 

 

49.6

%

 

 

52.6

%

 

 

 

 

 

Capital and Capital Ratios

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

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

 

 

 

 

 

 

 

 

 

 

 

OP Bancorp(1)

 

Open Bank

 

Minimum Well

Capitalized

Ratio

 

Minimum

Capital Ratio+

Conservation

Buffer(2)

Risk-Based Capital Ratios:

 

 

 

 

 

 

 

 

Total risk-based capital ratio

 

12.79

%

 

12.69

%

 

10.00

%

 

10.50

%

Tier 1 risk-based capital ratio

 

11.57

 

 

11.47

 

 

8.00

 

 

8.50

 

Common equity tier 1 ratio

 

11.57

 

 

11.47

 

 

6.50

 

 

7.00

 

Leverage ratio

 

9.30

 

 

9.22

 

 

5.00

 

 

4.00

 

 

 

 

 

 

 

 

 

 

(1)

The capital requirements are only applicable to the Bank, and the Company's ratios are included for comparison purpose.

(2)

An additional 2.5% capital conservation buffer above the minimum capital ratios are required in order to avoid limitations on distributions, including dividend payments and certain discretionary bonuses to executive officers.

 

 

 

 

 

 

 

 

 

 

 

OP Bancorp

 

 

 

 

 

 

 

Change 3Q2024 vs.

 

3Q2024

 

2Q2024

 

3Q2023

 

2Q2024

 

3Q2023

Risk-Based Capital Ratios:

 

 

 

 

 

 

 

 

 

 

Total risk-based capital ratio

 

 

12.79

%

 

 

13.26

%

 

 

13.31

%

 

(0.47

)%

 

(0.52

)%

Tier 1 risk-based capital ratio

 

 

11.57

 

 

 

12.01

 

 

 

12.09

 

 

(0.44

)

 

(0.52

)

Common equity tier 1 ratio

 

 

11.57

 

 

 

12.01

 

 

 

12.09

 

 

(0.44

)

 

(0.52

)

Leverage ratio

 

 

9.30

 

 

 

9.28

 

 

 

9.63

 

 

0.02

 

 

(0.33

)

Risk-weighted Assets ($ in thousands)

 

$

1,876,698

 

 

$

1,776,821

 

 

$

1,707,318

 

 

5.62

 

 

9.92

 

 

 

 

 

 

 

 

 

 

 

 

ABOUT OP BANCORP

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

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain matters set forth herein constitute “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, including forward-looking statements relating to the Company’s current business plans and expectations regarding future operating results. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from those projected. These risks and uncertainties, some of which are beyond our control, include, but are not limited to: the effects of substantial fluctuations in, and continuing elevated levels of, interest rates on our borrowers’ ability to perform in accordance with the terms of their loans and on our deposit customers’ expectation for higher rates on deposit products; cybersecurity risks, including the potential for the occurrence of successful cyberattacks and our ability to prevent and to mitigate the harms resulting from any such attacks; infrastructure risks and similar circumstances that affect our and our customers’ ability to communicate and to engage in routine online banking activities; business and economic conditions, particularly those affecting the financial services industry and our primary market areas; risks of international conflict, terrorism, civil unrest and domestic instability; the continuing effects of inflation and monetary policies, particularly those relating to the decisions and indicators of intent expressed by the Federal Reserve Open Markets Committee, as those circumstances impact our operations and our current and prospective borrowers and depositors; our ability to balance deposit liabilities and liquidity sources (including our ability to reprice those instruments and balancing our borrowings and investments to keep pace with changing market conditions) so as to meet current and expected withdrawals while promoting strong earning capacity; our ability to manage our credit risk successfully and to assess, adjust and monitor the sufficiency of our allowance for credit losses; factors that can impact the performance of our loan portfolio, including real estate values and liquidity in our primary market areas, the financial health of our commercial borrowers, the success of construction projects that we finance, including any loans acquired in acquisition transactions; the impacts of credit quality on our earnings and the related effects of increases to the reserve on our net income; our ability effectively to execute our strategic plan and manage our growth; interest rate fluctuations, which could have an adverse effect on our profitability; external economic and/or market factors, such as changes in monetary and fiscal policies and laws, including inflation or deflation, changes in the demand for loans, and fluctuations in consumer spending, borrowing and savings habits, which may have an adverse impact on our financial condition; continued or increasing competition from other banks and from credit unions and non-bank financial services companies, many of which are subject to less restrictive or less costly regulations than we are; challenges arising from unsuccessful attempts to expand into new geographic markets, products, or services; practical and regulatory constraints on the ability of Open Bank to pay dividends to us; increased capital requirements imposed by banking regulators, which may require us to raise capital at a time when capital is not available on favorable terms or at all; a failure in the internal controls we have implemented to address the risks inherent to the business of banking; including internal controls that affect the reliability of our publicly reported financial statements; inaccuracies in our assumptions about future events, which could result in material differences between our financial projections and actual financial performance, particularly with respect to the effects of predictions of future economic conditions as those circumstances affect our estimates for the adequacy of our allowance for credit losses and the related provision expense; changes in our management personnel or our inability to retain motivate and hire qualified management personnel; disruptions, security breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems; disruptions, security breaches, or other adverse events affecting the third-party vendors who perform several of our critical processing functions; an inability to keep pace with the rate of technological advances due to a lack of resources to invest in new technologies; risks related to potential acquisitions; political developments, uncertainties or instability, catastrophic events, or natural disasters, such as earthquakes, fires, drought, pandemic diseases (such as the coronavirus) or extreme weather events, any of which may affect services we use or affect our customers, employees or third parties with which we conduct business; incremental costs and obligations associated with operating as a public company; the impact of any claims or legal actions to which we may be subject, including any effect on our reputation; compliance with governmental and regulatory requirements, including the Dodd-Frank Act and others relating to banking, consumer protection, securities and tax matters, and our ability to maintain licenses required in connection with commercial mortgage origination, sale and servicing operations; changes in federal tax law or policy; and our ability the manage the foregoing and other factors set forth in the Company’s public reports. We describe these and other risks that could affect our results in Item 1A. “Risk Factors,” of our latest Annual Report on Form 10-K for the year ended December 31, 2023 and in our subsequent filings with the Securities and Exchange Commission.

CONSOLIDATED BALANCE SHEETS (unaudited)

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

As of

 

% Change 3Q2024 vs.

 

3Q2024

 

2Q2024

 

3Q2023

 

2Q2024

 

3Q2023

Assets

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

24,519

 

 

$

21,771

 

 

$

21,748

 

 

12.6

%

 

12.7

%

Interest-bearing deposits in other banks

 

 

142,237

 

 

 

105,905

 

 

 

83,992

 

 

34.3

 

 

69.3

 

Cash and cash equivalents

 

 

166,756

 

 

 

127,676

 

 

 

105,740

 

 

30.6

 

 

57.7

 

Available-for-sale debt securities, at fair value

 

 

199,373

 

 

 

199,205

 

 

 

191,313

 

 

0.1

 

 

4.2

 

Other investments

 

 

16,520

 

 

 

16,367

 

 

 

16,100

 

 

0.9

 

 

2.6

 

Loans held for sale

 

 

8,160

 

 

 

6,485

 

 

 

 

 

25.8

 

 

n/m

 

CRE loans

 

 

966,472

 

 

 

931,284

 

 

 

878,824

 

 

3.8

 

 

10.0

 

SBA loans

 

 

252,379

 

 

 

242,395

 

 

 

240,154

 

 

4.1

 

 

5.1

 

C&I loans

 

 

212,476

 

 

 

188,557

 

 

 

124,632

 

 

12.7

 

 

70.5

 

Home mortgage loans

 

 

499,666

 

 

 

506,873

 

 

 

515,789

 

 

(1.4

)

 

(3.1

)

Consumer loans

 

 

14

 

 

 

997

 

 

 

126

 

 

(98.6

)

 

(88.9

)

Gross loans receivable

 

 

1,931,007

 

 

 

1,870,106

 

 

 

1,759,525

 

 

3.3

 

 

9.7

 

Allowance for credit losses

 

 

(22,960

)

 

 

(22,760

)

 

 

(21,617

)

 

0.9

 

 

6.2

 

Net loans receivable

 

 

1,908,047

 

 

 

1,847,346

 

 

 

1,737,908

 

 

3.3

 

 

9.8

 

Premises and equipment, net

 

 

4,961

 

 

 

4,716

 

 

 

5,378

 

 

5.2

 

 

(7.8

)

Accrued interest receivable, net

 

 

9,479

 

 

 

8,555

 

 

 

7,996

 

 

10.8

 

 

18.5

 

Servicing assets

 

 

10,877

 

 

 

11,043

 

 

 

11,931

 

 

(1.5

)

 

(8.8

)

Company owned life insurance

 

 

22,739

 

 

 

22,566

 

 

 

22,071

 

 

0.8

 

 

3.0

 

Deferred tax assets, net

 

 

12,288

 

 

 

14,117

 

 

 

15,061

 

 

(13.0

)

 

(18.4

)

Other real estate owned

 

 

1,237

 

 

 

1,237

 

 

 

 

 

 

 

n/m

 

Operating right-of-use assets

 

 

7,870

 

 

 

8,348

 

 

 

8,993

 

 

(5.7

)

 

(12.5

)

Other assets

 

 

19,673

 

 

 

23,019

 

 

 

20,184

 

 

(14.5

)

 

(2.5

)

Total assets

 

$

2,387,980

 

 

$

2,290,680

 

 

$

2,142,675

 

 

4.2

%

 

11.4

%

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing

 

$

561,801

 

 

$

518,456

 

 

$

605,509

 

 

8.4

%

 

(7.2

)%

Money market and others

 

 

343,188

 

 

 

332,137

 

 

 

348,869

 

 

3.3

 

 

(1.6

)

Time deposits greater than $250

 

 

564,547

 

 

 

533,857

 

 

 

420,162

 

 

5.7

 

 

34.4

 

Other time deposits

 

 

595,067

 

 

 

556,371

 

 

 

450,631

 

 

7.0

 

 

32.1

 

Total deposits

 

 

2,064,603

 

 

 

1,940,821

 

 

 

1,825,171

 

 

6.4

 

 

13.1

 

Federal Home Loan Bank advances

 

 

75,000

 

 

 

115,000

 

 

 

95,000

 

 

(34.8

)

 

(21.1

)

Accrued interest payable

 

 

19,483

 

 

 

15,504

 

 

 

13,552

 

 

25.7

 

 

43.8

 

Operating lease liabilities

 

 

8,417

 

 

 

9,000

 

 

 

9,926

 

 

(6.5

)

 

(15.2

)

Other liabilities

 

 

16,874

 

 

 

14,369

 

 

 

14,719

 

 

17.4

 

 

14.6

 

Total liabilities

 

 

2,184,377

 

 

 

2,094,694

 

 

 

1,958,368

 

 

4.3

 

 

11.5

 

Shareholders' equity:

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

73,697

 

 

 

73,749

 

 

 

77,632

 

 

(0.1

)

 

(5.1

)

Additional paid-in capital

 

 

11,713

 

 

 

11,441

 

 

 

10,606

 

 

2.4

 

 

10.4

 

Retained earnings

 

 

131,588

 

 

 

127,929

 

 

 

117,483

 

 

2.9

 

 

12.0

 

Accumulated other comprehensive loss

 

 

(13,395

)

 

 

(17,133

)

 

 

(21,414

)

 

(21.8

)

 

(37.4

)

Total shareholders’ equity

 

 

203,603

 

 

 

195,986

 

 

 

184,307

 

 

3.9

 

 

10.5

 

Total liabilities and shareholders' equity

 

$

2,387,980

 

 

$

2,290,680

 

 

$

2,142,675

 

 

4.2

%

 

11.4

%

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENTS OF INCOME (unaudited)

 

 

 

 

 

 

 

 

 

 

 

($ in thousands, except share and per share data)

 

For the Three Months Ended

 

% Change 3Q2024 vs.

 

3Q2024

 

2Q2024

 

3Q2023

 

2Q2024

 

3Q2023

Interest income

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

31,885

 

$

30,605

 

$

28,250

 

4.2

%

 

12.9

%

Interest on available-for-sale debt securities

 

 

1,626

 

 

1,590

 

 

1,519

 

2.3

 

 

7.0

 

Other interest income

 

 

1,788

 

 

2,162

 

 

1,417

 

(17.3

)

 

26.2

 

Total interest income

 

 

35,299

 

 

34,357

 

 

31,186

 

2.7

 

 

13.2

 

Interest expense

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

 

17,921

 

 

17,343

 

 

13,006

 

3.3

 

 

37.8

 

Interest on borrowings

 

 

872

 

 

820

 

 

867

 

6.3

 

 

0.6

%

Total interest expense

 

 

18,793

 

 

18,163

 

 

13,873

 

3.5

 

 

35.5

 

Net interest income

 

 

16,506

 

 

16,194

 

 

17,313

 

1.9

 

 

(4.7

)

Provision for credit losses

 

 

448

 

 

617

 

 

1,359

 

(27.4

)

 

(67.0

)

Net interest income after provision for credit losses

 

 

16,058

 

 

15,577

 

 

15,954

 

3.1

 

 

0.7

 

Noninterest income

 

 

 

 

 

 

 

 

 

 

Service charges on deposits

 

 

889

 

 

793

 

 

575

 

12.1

 

 

54.6

 

Loan servicing fees, net of amortization

 

 

693

 

 

575

 

 

468

 

20.5

 

 

48.1

 

Gain on sale of loans

 

 

2,088

 

 

2,325

 

 

1,179

 

(10.2

)

 

77.1

 

Other income

 

 

570

 

 

491

 

 

379

 

16.1

 

 

50.4

 

Total noninterest income

 

 

4,240

 

 

4,184

 

 

2,601

 

1.3

 

 

63.0

 

Noninterest expense

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

8,031

 

 

7,568

 

 

7,014

 

6.1

 

 

14.5

 

Occupancy and equipment

 

 

1,676

 

 

1,660

 

 

1,706

 

1.0

 

 

(1.8

)

Data processing and communication

 

 

634

 

 

530

 

 

369

 

19.6

 

 

71.8

 

Professional fees

 

 

346

 

 

406

 

 

440

 

(14.8

)

 

(21.4

)

FDIC insurance and regulatory assessments

 

 

391

 

 

378

 

 

333

 

3.4

 

 

17.4

 

Promotion and advertising

 

 

151

 

 

151

 

 

207

 

 

 

(27.1

)

Directors’ fees

 

 

154

 

 

178

 

 

164

 

(13.5

)

 

(6.1

)

Foundation donation and other contributions

 

 

549

 

 

539

 

 

529

 

1.9

 

 

3.8

 

Other expenses

 

 

788

 

 

779

 

 

773

 

1.2

 

 

1.9

 

Total noninterest expense

 

 

12,720

 

 

12,189

 

 

11,535

 

4.4

 

 

10.3

 

Income before income tax expense

 

 

7,578

 

 

7,572

 

 

7,020

 

0.1

 

 

7.9

 

Income tax expense

 

 

2,142

 

 

2,136

 

 

1,899

 

0.3

 

 

12.8

 

Net income

 

$

5,436

 

$

5,436

 

$

5,121

 

%

 

6.2

%

 

 

 

 

 

 

 

 

 

 

 

Book value per share

 

$

13.75

 

$

13.23

 

$

12.17

 

3.9

%

 

13.0

%

Earnings per share - basic

 

 

0.36

 

 

0.36

 

 

0.33

 

 

 

9.1

 

Earnings per share - diluted

 

 

0.36

 

 

0.36

 

 

0.33

 

 

 

9.1

 

 

 

 

 

 

 

 

 

 

 

 

Shares of common stock outstanding, at period end

 

 

14,811,671

 

 

14,816,281

 

 

15,149,203

 

%

 

(2.2

)%

Weighted average shares:

 

 

 

 

 

 

 

 

 

 

- Basic

 

 

14,812,118

 

 

14,868,344

 

 

15,131,587

 

(0.4

)%

 

(2.1

)%

- Diluted

 

 

14,812,118

 

 

14,868,344

 

 

15,140,577

 

(0.4

)

 

(2.2

)

 

 

 

 

 

 

 

 

 

 

 

KEY RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

% Change 3Q2024 vs.

 

3Q2024

 

2Q2024

 

3Q2023

 

2Q2024

 

3Q2023

Return on average assets (ROA)(1)

 

0.94

%

 

0.95

%

 

0.96

%

 

%

 

%

Return on average equity (ROE)(1)

 

10.95

 

 

11.23

 

 

11.07

 

 

(0.3

)

 

(0.1

)

Net interest margin(1)

 

2.95

 

 

2.96

 

 

3.38

 

 

 

 

(0.4

)

Efficiency ratio

 

61.31

 

 

59.81

 

 

57.92

 

 

1.5

 

 

3.4

 

 

 

 

 

 

 

 

 

 

 

 

Total risk-based capital ratio

 

12.79

%

 

13.26

%

 

13.31

%

 

(0.5

)%

 

(0.5

)%

Tier 1 risk-based capital ratio

 

11.57

 

 

12.01

 

 

12.09

 

 

(0.4

)

 

(0.5

)

Common equity tier 1 ratio

 

11.57

 

 

12.01

 

 

12.09

 

 

(0.4

)

 

(0.5

)

Leverage ratio

 

9.30

 

 

9.28

 

 

9.63

 

 

 

 

(0.3

)

 

 

 

 

 

 

 

 

 

 

 

(1)

Annualized.

CONSOLIDATED STATEMENTS OF INCOME (unaudited)

 

 

 

 

 

 

 

($ in thousands, except share and per share data)

 

For the Nine Months Ended

 

 

 

3Q2024

 

3Q2023

 

% Change

Interest income

 

 

 

 

 

 

Interest and fees on loans

 

$

92,632

 

$

81,549

 

13.6

%

Interest on available-for-sale debt securities

 

 

4,676

 

 

4,647

 

0.6

 

Other interest income

 

 

5,261

 

 

3,686

 

42.7

 

Total interest income

 

 

102,569

 

 

89,882

 

14.1

 

Interest expense

 

 

 

 

 

 

Interest on deposits

 

 

50,939

 

 

35,308

 

44.3

 

Interest on borrowings

 

 

2,951

 

 

2,117

 

39.4

 

Total interest expense

 

 

53,890

 

 

37,425

 

44.0

 

Net interest income

 

 

48,679

 

 

52,457

 

(7.2

)

Provision for credit losses

 

 

1,210

 

 

1,021

 

18.5

 

Net interest income after provision for credit losses

 

 

47,469

 

 

51,436

 

(7.7

)

Noninterest income

 

 

 

 

 

 

Service charges on deposits

 

 

2,294

 

 

1,566

 

46.5

%

Loan servicing fees, net of amortization

 

 

2,040

 

 

1,909

 

6.9

 

Gain on sale of loans

 

 

6,116

 

 

5,847

 

4.6

 

Other income

 

 

1,560

 

 

1,179

 

32.3

 

Total noninterest income

 

 

12,010

 

 

10,501

 

14.4

 

Noninterest expense

 

 

 

 

 

 

Salaries and employee benefits

 

 

23,440

 

 

21,947

 

6.8

 

Occupancy and equipment

 

 

4,991

 

 

4,874

 

2.4

 

Data processing and communication

 

 

1,651

 

 

1,465

 

12.7

 

Professional fees

 

 

1,147

 

 

1,180

 

(2.8

)

FDIC insurance and regulatory assessments

 

 

1,143

 

 

1,220

 

(6.3

)

Promotion and advertising

 

 

451

 

 

528

 

(14.6

)

Directors’ fees

 

 

489

 

 

535

 

(8.6

)

Foundation donation and other contributions

 

 

1,628

 

 

1,876

 

(13.2

)

Other expenses

 

 

2,126

 

 

2,118

 

0.4

 

Total noninterest expense

 

 

37,066

 

 

35,743

 

3.7

 

Income before income tax expense

 

 

22,413

 

 

26,194

 

(14.4

)

Income tax expense

 

 

6,315

 

 

7,448

 

(15.2

)

Net income

 

$

16,098

 

$

18,746

 

(14.1

)%

 

 

 

 

 

 

 

Book value per share

 

$

13.75

 

$

12.17

 

13.0

%

Earnings per share - basic

 

 

1.06

 

 

1.21

 

(12.4

)

Earnings per share - diluted

 

 

1.06

 

 

1.21

 

(12.4

)

 

 

 

 

 

 

 

Shares of common stock outstanding, at period end

 

 

14,811,671

 

 

15,149,203

 

(2.2

)%

Weighted average shares:

 

 

 

 

 

 

- Basic

 

 

14,890,479

 

 

15,158,365

 

(1.8

)%

- Diluted

 

 

14,890,479

 

 

15,169,794

 

(1.8

)

 

 

 

 

 

 

 

KEY RATIOS

 

 

 

 

 

 

 

 

 

For the Nine Months Ended

 

 

 

3Q2024

 

3Q2023

 

% Change

Return on average assets (ROA)(1)

 

0.95

%

 

1.18

%

 

(0.2

)%

Return on average equity (ROE)(1)

 

11.00

 

 

13.69

 

 

(2.7

)

Net interest margin(1)

 

2.99

 

 

3.45

 

 

(0.5

)

Efficiency ratio

 

61.08

 

 

56.77

 

 

4.3

 

 

 

 

 

 

 

 

Total risk-based capital ratio

 

12.79

%

 

13.31

%

 

(0.5

)%

Tier 1 risk-based capital ratio

 

11.57

 

 

12.09

 

 

(0.5

)

Common equity tier 1 ratio

 

11.57

 

 

12.09

 

 

(0.5

)

Leverage ratio

 

9.30

 

 

9.63

 

 

(0.3

)

 

 

 

 

 

 

 

(1)

Annualized.

ASSET QUALITY

 

 

 

 

 

 

 

($ in thousands)

 

As of and For the Three Months Ended

 

3Q2024

 

2Q2024

 

3Q2023

Nonaccrual loans(1)

 

$

3,620

 

 

$

4,389

 

 

$

4,211

 

Loans 90 days or more past due, accruing

 

 

 

 

 

 

 

 

 

Nonperforming loans

 

 

3,620

 

 

 

4,389

 

 

 

4,211

 

OREO

 

 

1,237

 

 

 

1,237

 

 

 

 

Nonperforming assets

 

$

4,857

 

 

$

5,626

 

 

$

4,211

 

 

 

 

 

 

 

 

Criticized loans by risk categories:

 

 

 

 

 

 

Special mention loans

 

$

4,540

 

 

$

3,339

 

 

$

3,651

 

Classified loans(1)(2)

 

 

11,960

 

 

 

13,089

 

 

 

10,139

 

Total criticized loans

 

$

16,500

 

 

$

16,428

 

 

$

13,790

 

 

 

 

 

 

 

 

Criticized loans by loan type:

 

 

 

 

 

 

CRE loans

 

$

5,249

 

 

$

5,896

 

 

$

5,130

 

SBA loans

 

 

10,144

 

 

 

9,771

 

 

 

6,169

 

C&I loans

 

 

1,107

 

 

 

550

 

 

 

 

Home mortgage loans

 

 

 

 

 

211

 

 

 

2,491

 

Total criticized loans

 

$

16,500

 

 

$

16,428

 

 

$

13,790

 

 

 

 

 

 

 

 

Nonperforming loans / gross loans

 

 

0.19

%

 

 

0.23

%

 

 

0.24

%

Nonperforming assets / gross loans plus OREO

 

 

0.25

 

 

 

0.30

 

 

 

0.24

 

Nonperforming assets / total assets

 

 

0.20

 

 

 

0.25

 

 

 

0.20

 

Classified loans / gross loans

 

 

0.62

 

 

 

0.70

 

 

 

0.58

 

Criticized loans / gross loans

 

 

0.85

 

 

 

0.88

 

 

 

0.78

 

 

 

 

 

 

 

 

Allowance for credit losses ratios:

 

 

 

 

 

 

As a % of gross loans

 

 

1.19

%

 

 

1.22

%

 

 

1.23

%

As a % of nonperforming loans

 

 

634

 

 

 

519

 

 

 

513

 

As a % of nonperforming assets

 

 

473

 

 

 

405

 

 

 

513

 

As a % of classified loans

 

 

192

 

 

 

174

 

 

 

213

 

As a % of criticized loans

 

 

139

 

 

 

139

 

 

 

157

 

 

 

 

 

 

 

 

Net charge-offs (recoveries)

 

$

34

 

 

$

(4

)

 

$

488

 

Net charge-offs (recoveries)(3) to average gross loans(4)

 

 

0.01

%

 

 

(0.00

)%

 

 

0.11

%

 

 

 

 

 

 

 

(1)

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

(2)

Consists of substandard, doubtful and loss categories.

(3)

Annualized.

(4)

Includes loans held for sale.

 

 

 

 

 

 

($ in thousands)

 

3Q2024

 

2Q2024

 

3Q2023

Accruing delinquent loans 30-89 days past due

 

 

 

 

 

 

30-59 days

 

$

4,095

 

$

3,774

 

$

5,979

60-89 days

 

 

6,211

 

 

2,878

 

 

2,377

Total

 

$

10,306

 

$

6,652

 

$

8,356

 

 

 

 

 

 

 

AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

3Q2024

 

2Q2024

 

3Q2023

($ in thousands)

 

Average

Balance

 

Interest

and Fees

 

Yield/

Rate(1)

 

Average

Balance

 

Interest

and Fees

 

Yield/

Rate(1)

 

Average

Balance

 

Interest

and Fees

 

Yield/

Rate(1)

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits in other banks

 

$

109,003

 

$

1,474

 

5.29

%

 

$

135,984

 

$

1,847

 

5.37

%

 

$

82,752

 

$

1,116

 

5.28

%

Federal funds sold and other investments

 

 

16,432

 

 

314

 

7.65

 

 

 

16,307

 

 

315

 

7.72

 

 

 

16,176

 

 

301

 

7.44

 

Available-for-sale debt securities, at fair value

 

 

199,211

 

 

1,626

 

3.26

 

 

 

195,512

 

 

1,590

 

3.25

 

 

 

199,205

 

 

1,519

 

3.05

 

CRE loans

 

 

944,818

 

 

14,759

 

6.21

 

 

 

908,073

 

 

13,742

 

6.09

 

 

 

856,911

 

 

12,207

 

5.65

 

SBA loans

 

 

270,282

 

 

7,107

 

10.46

 

 

 

259,649

 

 

7,116

 

11.02

 

 

 

248,960

 

 

7,303

 

11.64

 

C&I loans

 

 

187,163

 

 

3,642

 

7.74

 

 

 

172,481

 

 

3,367

 

7.85

 

 

 

117,578

 

 

2,340

 

7.90

 

Home mortgage loans

 

 

503,148

 

 

6,364

 

5.06

 

 

 

501,862

 

 

6,348

 

5.06

 

 

 

516,465

 

 

6,393

 

4.95

 

Consumer loans

 

 

541

 

 

13

 

9.37

 

 

 

1,219

 

 

32

 

10.44

 

 

 

274

 

 

7

 

10.01

 

Loans(2)

 

 

1,905,952

 

 

31,885

 

6.66

 

 

 

1,843,284

 

 

30,605

 

6.67

 

 

 

1,740,188

 

 

28,250

 

6.45

 

Total interest-earning assets

 

 

2,230,598

 

 

35,299

 

6.30

 

 

 

2,191,087

 

 

34,357

 

6.29

 

 

 

2,038,321

 

 

31,186

 

6.08

 

Noninterest-earning assets

 

 

88,747

 

 

 

 

 

 

89,446

 

 

 

 

 

 

84,580

 

 

 

 

Total assets

 

$

2,319,345

 

 

 

 

 

$

2,280,533

 

 

 

 

 

$

2,122,901

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market deposits and others

 

$

343,429

 

$

3,601

 

4.17

%

 

$

338,554

 

$

3,494

 

4.15

%

 

$

352,424

 

$

3,487

 

3.93

%

Time deposits

 

 

1,127,078

 

 

14,320

 

5.05

 

 

 

1,102,587

 

 

13,849

 

5.05

 

 

 

869,675

 

 

9,519

 

4.34

 

Total interest-bearing deposits

 

 

1,470,507

 

 

17,921

 

4.85

 

 

 

1,441,141

 

 

17,343

 

4.84

 

 

 

1,222,099

 

 

13,006

 

4.22

 

Borrowings

 

 

80,326

 

 

872

 

4.32

 

 

 

77,314

 

 

820

 

4.27

 

 

 

79,891

 

 

867

 

4.31

 

Total interest-bearing liabilities

 

 

1,550,833

 

 

18,793

 

4.82

 

 

 

1,518,455

 

 

18,163

 

4.81

 

 

 

1,301,990

 

 

13,873

 

4.23

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

528,126

 

 

 

 

 

 

529,179

 

 

 

 

 

 

599,262

 

 

 

 

Other noninterest-bearing liabilities

 

 

41,892

 

 

 

 

 

 

39,301

 

 

 

 

 

 

36,620

 

 

 

 

Total noninterest-bearing liabilities

 

 

570,018

 

 

 

 

 

 

568,480

 

 

 

 

 

 

635,882

 

 

 

 

Shareholders’ equity

 

 

198,494

 

 

 

 

 

 

193,598

 

 

 

 

 

 

185,029

 

 

 

 

Total liabilities and shareholders’ equity

 

$

2,319,345

 

 

 

 

 

 

2,280,533

 

 

 

 

 

 

2,122,901

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income / interest rate spreads

 

 

 

$

16,506

 

1.48

%

 

 

 

$

16,194

 

1.48

%

 

 

 

$

17,313

 

1.85

%

Net interest margin

 

 

 

 

 

2.95

%

 

 

 

 

 

2.96

%

 

 

 

 

 

3.38

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of deposits & cost of funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total deposits / cost of deposits

 

$

1,998,633

 

$

17,921

 

3.57

%

 

$

1,970,320

 

$

17,343

 

3.54

%

 

$

1,821,361

 

$

13,006

 

2.83

%

Total funding liabilities / cost of funds

 

 

2,078,959

 

 

18,793

 

3.60

 

 

 

2,047,634

 

 

18,163

 

3.57

 

 

 

1,901,252

 

 

13,873

 

2.90

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Annualized.

(2)

Includes loans held for sale.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Nine Months Ended

 

 

3Q2024

 

3Q2023

($ in thousands)

 

Average

Balance

 

Interest

and Fees

 

Yield/

Rate(1)

 

Average

Balance

 

Interest

and Fees

 

Yield/

Rate(1)

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits in other banks

 

$

106,022

 

$

4,310

 

5.34

%

 

$

78,736

 

$

2,965

 

4.97

%

Federal funds sold and other investments

 

 

16,335

 

 

951

 

7.76

 

 

 

14,575

 

 

721

 

6.59

 

Available-for-sale debt securities, at fair value

 

 

195,383

 

 

4,676

 

3.19

 

 

 

206,448

 

 

4,647

 

3.00

 

CRE loans

 

 

918,149

 

 

42,230

 

6.14

 

 

 

845,340

 

 

35,209

 

5.57

 

SBA loans

 

 

263,126

 

 

21,436

 

10.88

 

 

 

262,130

 

 

21,459

 

10.94

 

C&I loans

 

 

164,927

 

 

9,679

 

7.84

 

 

 

117,850

 

 

6,772

 

7.68

 

Home mortgage loans

 

 

505,669

 

 

19,207

 

5.06

 

 

 

504,188

 

 

18,069

 

4.78

 

Consumer & other loans

 

 

1,046

 

 

80

 

10.10

 

 

 

994

 

 

40

 

5.40

 

Loans(2)

 

 

1,852,917

 

 

92,632

 

6.68

 

 

 

1,730,502

 

 

81,549

 

6.30

 

Total interest-earning assets

 

 

2,170,657

 

 

102,569

 

6.30

 

 

 

2,030,261

 

 

89,882

 

5.91

 

Noninterest-earning assets

 

 

88,594

 

 

 

 

 

 

84,044

 

 

 

 

Total assets

 

$

2,259,251

 

 

 

 

 

$

2,114,305

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Money market deposits and others

 

$

349,766

 

$

11,035

 

4.21

%

 

$

373,041

 

$

9,838

 

3.53

%

Time deposits

 

 

1,061,609

 

 

39,904

 

5.02

 

 

 

833,603

 

 

25,470

 

4.09

 

Total interest-bearing deposits

 

 

1,411,375

 

 

50,939

 

4.82

 

 

 

1,206,644

 

 

35,308

 

3.91

 

Borrowings

 

 

88,743

 

 

2,951

 

4.44

 

 

 

63,078

 

 

2,117

 

4.49

 

Total interest-bearing liabilities

 

 

1,500,118

 

 

53,890

 

4.80

 

 

 

1,269,722

 

 

37,425

 

3.94

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

523,951

 

 

 

 

 

 

628,569

 

 

 

 

Other noninterest-bearing liabilities

 

 

40,141

 

 

 

 

 

 

33,377

 

 

 

 

Total noninterest-bearing liabilities

 

 

564,092

 

 

 

 

 

 

661,946

 

 

 

 

Shareholders’ equity

 

 

195,041

 

 

 

 

 

 

182,637

 

 

 

 

Total liabilities and shareholders’ equity

 

$

2,259,251

 

 

 

 

 

 

2,114,305

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income / interest rate spreads

 

 

 

$

48,679

 

1.50

%

 

 

 

$

52,457

 

1.97

%

Net interest margin

 

 

 

 

 

2.99

%

 

 

 

 

 

3.45

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of deposits & cost of funds:

 

 

 

 

 

 

 

 

 

 

 

 

Total deposits / cost of deposits

 

$

1,935,326

 

$

50,939

 

3.52

%

 

 

1,835,213

 

$

35,308

 

2.57

%

Total funding liabilities / cost of funds

 

 

2,024,069

 

 

53,890

 

3.56

 

 

 

1,898,291

 

 

37,425

 

2.64

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Annualized.

(2)

Includes loans held for sale.

 

Contacts

Investor Relations
OP Bancorp
Christine Oh
EVP & CFO
213.892.1192
Christine.oh@myopenbank.com

Contacts

Investor Relations
OP Bancorp
Christine Oh
EVP & CFO
213.892.1192
Christine.oh@myopenbank.com