2024 Fourth Quarter Highlights compared with 2024 Third
Quarter:
- Financial Results:
- Net income of $5.0 million, compared to $5.4 million
- Diluted earnings per share of $0.33, compared to $0.36
- Net interest income of $16.9 million, compared to $16.5
million
- Net interest margin of 2.96%, compared to 2.95%
- Provision for credit losses of $1.5 million, compared to $448
thousand
- Total assets of $2.37 billion, compared to $2.39 billion
- Gross loans of $1.96 billion, compared to $1.93 billion
- Total deposits of $2.03 billion, compared to $2.06 billion
- Credit Quality:
- Allowance for credit losses to gross loans of 1.27%, compared
to 1.19%
- Net charge-offs(1) to average gross loans(2) of 0.00%, compared
to 0.01%
- Loans past due 30-89 days to gross loans of 0.46%, compared to
0.53%
- Nonperforming loans to gross loans of 0.40%, compared to
0.19%
- Criticized loans(3) to gross loans of 1.00%, compared to
0.85%
- Capital Levels:
- Remained well-capitalized with a Common Equity Tier 1 (“CET1”)
ratio of 11.35%
- Book value per common share increased to $13.83, compared to
$13.75
- 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.
OP Bancorp (the “Company”) (NASDAQ: OPBK), the holding company
of Open Bank (the “Bank”), today reported its financial results for
the fourth quarter of 2024. Net income for the fourth quarter of
2024 was $5.0 million, or $0.33 per diluted common share, compared
with $5.4 million, or $0.36 per diluted common share, for the third
quarter of 2024, and $5.2 million, or $0.34 per diluted common
share, for the fourth quarter of 2023.
Min Kim, President and Chief Executive Officer:
“We are continuing to experience the effects of uncertainty in
the financial markets providing challenges in increasing customer
deposits and lowering costs of deposit,” said Min Kim, President
and Chief Executive. “We continue to see slightly elevated levels
of classified loans, and we have responded prudently to managing
these assets. We are also paying careful attention to those of our
customers and employees who have been affected by the unprecedented
wildfires in the Los Angeles basin, and we express our deepest
condolences to all of those who have lost homes, businesses or
jobs, or who have been affected by these disasters. We look forward
to opportunities to assist in the recovery of the affected
communities.”
SELECTED FINANCIAL HIGHLIGHTS
($ in thousands, except per share
data)
As of and For the
Quarter
% Change 4Q2024 vs.
4Q2024
3Q2024
4Q2023
3Q2024
4Q2023
Selected Income Statement Data:
Net interest income
$
16,929
$
16,506
$
16,230
2.6
%
4.3
%
Provision for credit losses
1,547
448
630
245.3
145.6
Noninterest income
4,417
4,240
3,680
4.2
20.0
Noninterest expense
13,133
12,720
11,983
3.2
9.6
Income tax expense
1,695
2,142
2,125
(20.9
)
(20.2
)
Net income
4,971
5,436
5,172
(8.6
)
(3.9
)
Diluted earnings per share
0.33
0.36
0.34
(8.3
)
(2.9
)
Selected Balance Sheet Data:
Gross loans
$
1,956,852
$
1,931,007
$
1,765,845
1.3
%
10.8
%
Total deposits
2,027,285
2,064,603
1,807,558
(1.8
)
12.2
Total assets
2,366,013
2,387,980
2,147,730
(0.9
)
10.2
Average loans(1)
1,947,653
1,905,952
1,787,540
2.2
9.0
Average deposits
2,029,855
1,998,633
1,813,411
1.6
11.9
Credit Quality:
Nonperforming loans
$
7,820
$
3,620
$
6,082
116.0
%
28.6
%
Nonperforming loans to gross loans
0.40
%
0.19
%
0.34
%
0.21
0.06
Criticized loans(2) to gross loans
1.00
0.85
0.76
0.15
0.24
Net charge-offs(3) to average gross
loans(1)
0.00
0.01
0.04
(0.01
)
(0.04
)
Allowance for credit losses to gross
loans
1.27
1.19
1.25
0.08
0.02
Allowance for credit losses to
nonperforming loans
317
634
362
(317.00
)
(45.00
)
Financial Ratios:
Return on average assets(3)
0.84
%
0.94
%
0.96
%
(0.10
)%
(0.12
)%
Return on average equity(3)
9.75
10.95
11.18
(1.20
)
(1.43
)
Net interest margin(3)
2.96
2.95
3.12
0.01
(0.16
)
Efficiency ratio(4)
61.52
61.31
60.19
0.21
1.33
Common equity tier 1 capital ratio
11.35
11.57
12.52
(0.22
)
(1.17
)
Leverage ratio
9.27
9.30
9.57
(0.03
)
(0.30
)
Book value per common share
$
13.83
$
13.75
$
12.84
0.6
7.7
(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 4Q2024 vs.
4Q2024
3Q2024
4Q2023
3Q2024
4Q2023
Interest Income
Interest income
$
35,051
$
35,299
$
31,783
(0.7
)%
10.3
%
Interest expense
18,122
18,793
15,553
(3.6
)
16.5
Net interest income
$
16,929
$
16,506
$
16,230
2.6
%
4.3
%
($ in thousands)
For the Three Months
Ended
Yield Change 4Q2024
vs.
4Q2024
3Q2024
4Q2023
Interest
and Fees
Yield/Rate(1)
Interest
and Fees
Yield/Rate(1)
Interest
and Fees
Yield/Rate(1)
3Q2024
4Q2023
Interest-earning Assets:
Loans
$
31,729
6.49
%
$
31,885
6.66
%
$
28,914
6.43
%
(0.17
)%
0.06
%
Total interest-earning assets
35,051
6.12
35,299
6.30
31,783
6.10
(0.18
)
0.02
Interest-bearing Liabilities:
Interest-bearing deposits
17,182
4.60
17,921
4.85
14,127
4.51
(0.25
)
0.09
Total interest-bearing liabilities
18,122
4.58
18,793
4.82
15,553
4.53
(0.24
)
0.05
Ratios:
Net interest income / interest rate
spreads
16,929
1.54
16,506
1.48
16,230
1.57
0.06
(0.03
)
Net interest margin
2.96
2.95
3.12
0.01
(0.16
)
Total deposits / cost of deposits
17,182
3.37
17,921
3.57
14,127
3.09
(0.20
)
0.28
Total funding liabilities / cost of
funds
18,122
3.41
18,793
3.60
15,553
3.19
(0.19
)
0.22
(1)
Annualized.
($ in thousands)
For the Three Months
Ended
Yield Change 4Q2024
vs.
4Q2024
3Q2024
4Q2023
Interest
& Fees
Yield(1)
Interest
& Fees
Yield(1)
Interest
& Fees
Yield(1)
3Q2024
4Q2023
Loan Yield Component:
Contractual interest rate
$
31,406
6.42
%
$
31,182
6.52
%
$
28,596
6.36
%
(0.10
)%
0.06
%
Accretion of SBA loan discount(2)
813
0.17
918
0.19
960
0.21
(0.02
)
(0.04
)
Amortization of net deferred fees
(47
)
(0.01
)
23
—
(67
)
-0.01
(0.01
)
—
Amortization of premium
(363
)
(0.07
)
(487
)
(0.10
)
(423
)
(0.09
)
0.03
0.02
Net interest recognized on nonaccrual
loans
(232
)
(0.05
)
(61
)
(0.01
)
(345
)
(0.08
)
(0.04
)
0.03
Prepayment penalty income and other
fees(3)
152
0.03
310
0.06
193
0.04
(0.03
)
(0.01
)
Yield on loans
$
31,729
6.49
%
$
31,885
6.66
%
$
28,914
6.43
%
(0.17
)%
0.06
%
(1)
Annualized.
(2)
Includes discount accretion from SBA loan
payoffs of $329 thousand, $426 thousand and $413 thousand for the
three months ended December 31, 2024, September 30, 2024 and
December 31, 2023, respectively.
(3)
Includes prepayment penalty income of $45
thousand, $114 thousand and $43 thousand for the three months ended
December 31, 2024, September 30, 2024 and December 31, 2023,
respectively, from Commercial Real Estate (“CRE”) loans.
Fourth Quarter 2024 vs. Third Quarter
2024
Net interest income increased $423 thousand, or 2.6%, primarily
due to lower interest expense on interest-bearing deposits,
partially offset by lower interest income on loans as our deposit
costs repriced faster than our loan yields following the Federal
Reserve’s rate cuts from September 2024. Net interest margin was
2.96%, an increase of 1 basis point from 2.95%.
- A $739 thousand decrease in interest expense on
interest-bearing deposits was primarily due to a 25 basis point
decrease in average cost.
- A 156 thousand decrease in interest income on loans was
primarily due to a 17 basis point decrease in average yield.
Fourth Quarter 2024 vs. Fourth Quarter
2023
Net interest income increased $699 thousand, or 4.3%, as higher
interest income from a $206.4 million, or 10.0%, increase in
average earning assets (loans and interest-bearing deposits in
other banks) surpassed higher interest expense from a $210.6
million, or 15.5%, increase in average interest-bearing liabilities
(deposits and borrowings). Net interest margin, however, decreased
16 basis points to 2.96% from 3.12%, primarily due to a faster
increase in average interest-bearing liabilities over average
earnings assets and a faster repricing in deposits costs over loan
yields.
- A $2.8 million increase in interest income on loans was
primarily due to a $160.1 million, or 9.0%, increase in average
balance and a 6 basis point increase in average yield.
- A $380 thousand increase in interest income on interest-bearing
deposits in other banks was primarily due to a $41.7 million, or
53.1%, increase in average balance.
- A $3.1 million increase in interest expense on interest-bearing
deposits was primarily due to a $242.9 million, or 19.5%, increase
in average balance and a 9 basis point increase in average
cost.
- A $486 thousand decrease in interest expense on borrowings was
primarily due to a $32 million, or 27.1%, decrease in average
balance and a 44 basis point decrease in average cost.
Provision for Credit Losses
($ in thousands)
For the Three Months
Ended
4Q2024
3Q2024
4Q2023
Provision for credit losses on loans
$
1,859
$
234
$
537
Provision for (reversal of) credit losses
on off-balance sheet exposure
(312
)
214
93
Total provision for credit losses
$
1,547
$
448
$
630
Fourth Quarter 2024 vs. Third Quarter
2024
The Company recorded $1.5 million in total provision for credit
losses, an increase of $1.1 million, compared with $448 thousand, ,
reflecting an ongoing period of relatively elevated interest rates
and the related impacts on our customers and on the values of the
collateral securing our loans. Provision for credit losses on loans
increased $1.6 million and provision for credit losses on
off-balance sheet exposure decreased $526 thousand.
Provision for credit losses on loans of $1.9 million was due to
a $1.5 million increase in qualitative reserves, and a $810
thousand increase in specific reserves, partially offset by a $439
thousand decrease in general reserves.
- The increase in qualitative reserves was primarily due to
changes in the Bank’s asset quality metrics and a decrease in CRE
value indices.
- The increase in specific reserves was primarily due to two SBA
relationships.
- The decrease in general reserves was primarily due to a
decrease in average life of home mortgage loans, partially offset
by an increase from loan growth.
Reversal of credit losses on off-balance sheet exposure of $312
thousand was primarily due to a change in calculation method for
revolving accounts using expected funding amount instead of
unfunded commitment amount.
Fourth Quarter 2024 vs. Fourth Quarter
2023
The Company recorded $1.5 million in total provision for credit
losses, an increase of $917 thousand, compared with $630 thousand.
Provision for credit losses on loans increased $1.3 million and
provision for credit losses on off-balance sheet exposure decreased
$405 thousand.
Noninterest Income
($ in thousands)
For the Three Months
Ended
% Change 4Q2024 vs.
4Q2024
3Q2024
4Q2023
3Q2024
4Q2023
Noninterest Income
Service charges on deposits
$
967
$
889
$
557
8.8
%
73.6
%
Loan servicing fees, net of
amortization
858
693
540
23.8
58.9
Gain on sale of loans
2,197
2,088
1,996
5.2
10.1
Other income
395
570
587
(30.7
)
(32.7
)
Total noninterest income
$
4,417
$
4,240
$
3,680
4.2
%
20.0
%
Fourth Quarter 2024 vs. Third Quarter
2024
Noninterest income increased $177 thousand, or 4.2%, primarily
due to higher loan servicing fees and gain on sale of loans,
partially offset by lower other income.
- Loan servicing fees, net of amortization, were $858 thousand,
an increase of $165 thousand from $693 thousand, primarily due to a
decrease in servicing fee amortization driven by lower loan payoffs
in loan servicing portfolio.
- Gain on sale of loans was $2.2 million, an increase of $109
thousand from $2.1 million, primarily due to a higher average
premium on sales. The Bank sold $34.7 million in SBA loans at an
average premium rate of 7.82%, compared to the sale of $35.6
million at an average premium rate of 7.30%.
- Other income was $395 thousand, a decrease of $175 thousand
from $570 thousand, primarily due to an increase in unrealized loss
of CRA-qualified mutual funds driven by market interest rate
changes.
Fourth Quarter 2024 vs. Fourth Quarter
2023
Noninterest income increased $737 thousand, or 20.0%, primarily
due to higher service charges on deposits, loan servicing fees and
gain on sale of loans, offset by lower other income.
- Service charges on deposits were $967 thousand, an increase of
$410 thousand from $557 thousand, primarily due to an increase in
deposit analysis fees from an increase in the number of analysis
accounts.
- Loan servicing fees were $858 thousand, an increase of $318
thousand from $540 thousand, primarily due to a decrease in
servicing fee amortization driven by lower loan payoffs in loan
servicing portfolio.
- Gain on sale of loans was $2.2 million, an increase of $201
thousand from $2.0 million, primarily due to a higher average
premium rate, partially offset by lower sold amount. The Bank sold
$34.7 million in SBA loans at an average premium rate of 7.82%,
compared to the sale of $40.1 million at an average premium rate of
5.99%.
- Other income was $395 thousand, a decrease of $192 thousand
from $587 thousand, primarily due to an increase in unrealized loss
of CRA-qualified mutual fund driven by market interest rate
changes.
Noninterest Expense
($ in thousands)
For the Three Months
Ended
% Change 4Q2024 vs.
4Q2024
3Q2024
4Q2023
3Q2024
4Q2023
Noninterest Expense
Salaries and employee benefits
$
8,277
$
8,031
$
7,646
3.1
%
8.3
%
Occupancy and equipment
1,682
1,676
1,616
0.4
4.1
Data processing and communication
594
634
644
(6.3
)
(7.8
)
Professional fees
388
346
391
12.1
(0.8
)
FDIC insurance and regulatory
assessments
529
391
237
35.3
123.2
Promotion and advertising
82
151
86
(45.7
)
(4.7
)
Directors’ fees
151
154
145
(1.9
)
4.1
Foundation donation and other
contributions
480
549
524
(12.6
)
(8.4
)
Other expenses
950
788
694
20.6
36.9
Total noninterest expense
$
13,133
$
12,720
$
11,983
3.2
%
9.6
%
Fourth Quarter 2024 vs. Third Quarter
2024
Noninterest expense increased $413 thousand, or 3.2%, primarily
due to higher salaries and employee benefits, other expenses, and
FDIC insurance and regulatory assessments.
- Salaries and employee benefits increased $246 thousand,
primarily due to increases in employee incentive accruals.
- Other expenses increased $162 thousand, primarily due to an
increase in customer services expenses related to the increase in
the number of analysis accounts.
- FDIC insurance and regulatory assessments increased $138
thousand, primarily due to year end accrual adjustments.
Fourth Quarter 2024 vs. Fourth Quarter
2023
Noninterest expense increased $1.2 million, or 9.6%, primarily
due to higher salaries and employee benefits, FDIC insurance and
regulatory assessments, and other expenses.
- Salaries and employee benefits increased $631 thousand,
primarily due to increases in salaries and employee benefits as our
number of employees increased to 231 from 222.
- FDIC insurance and regulatory assessments increased $292
thousand, primarily due to increases in assessment base and rate
from our balance sheet growth and increased reliance on brokered
deposits.
- Other expenses increased $256 thousand, primarily due to an
increase in customer services expenses related to the increase in
the number of analysis accounts.
Income Tax Expense
Fourth Quarter 2024 vs. Third Quarter
2024
Income tax expense was $1.7 million, or an effective tax rate of
25.4%, compared to income tax expense of $2.1 million, or an
effective tax rate of 28.3%. The decrease in effective tax rate was
primarily due to year-end provision adjustments for additional tax
benefits from low income housing tax credit fund investments, and
adjustments for differences between the prior year tax provision
and the final tax returns that were applied in the quarter.
Fourth Quarter 2024 vs. Fourth Quarter
2023
Income tax expense was $1.7 million, resulting in an effective
tax rate of 25.4%, compared to income tax expense of $2.1 million,
resulting in an effective tax rate of 29.1%. The decrease in
effective tax rate was primarily due to year-end provision
adjustments for additional tax benefits from low income housing tax
credit fund investments, and adjustments for differences between
the prior year tax provision and the final tax returns that were
applied in the quarter.
BALANCE SHEET HIGHLIGHTS
Loans
($ in thousands)
As of
% Change 4Q2024 vs.
4Q2024
3Q2024
4Q2023
3Q2024
4Q2023
CRE loans
$
980,247
$
966,472
$
885,585
1.4
%
10.7
%
SBA loans
253,710
252,379
239,692
0.5
5.8
C&I loans
213,097
212,476
120,970
0.3
76.2
Home mortgage loans
509,524
499,666
518,024
2.0
(1.6
)
Consumer & other loans
274
14
1,574
1,857.1
(82.6
)
Gross loans
$
1,956,852
$
1,931,007
$
1,765,845
1.3
%
10.8
%
The following table presents new loan originations based on loan
commitment amounts for the periods indicated:
($ in thousands)
For the Three Months
Ended
% Change 4Q2024 vs.
4Q2024
3Q2024
4Q2023
3Q2024
4Q2023
CRE loans
$
64,827
$
68,525
$
15,885
(5.4
)%
308.1
%
SBA loans
36,810
46,302
51,855
(20.5
)
(29.0
)
C&I loans
7,783
27,771
15,270
(72.0
)
(49.0
)
Home mortgage loans
17,937
10,105
12,417
77.5
44.5
Consumer & other loans
—
—
1,500
—
(100.0
)
Gross loans
$
127,357
$
152,703
$
96,927
(16.6
)%
31.4
%
The following table presents changes in gross loans by loan
activity for the periods indicated:
($ in thousands)
For the Three Months
Ended
4Q2024
3Q2024
4Q2023
Loan Activities:
Gross loans, beginning
$
1,931,007
$
1,870,106
$
1,759,525
New originations
127,357
152,703
96,927
Purchases
—
862
2,371
Sales
(34,715
)
(35,576
)
(40,122
)
Payoffs
(48,456
)
(29,642
)
(23,590
)
Paydowns
(21,919
)
(25,772
)
(27,471
)
Decrease (increase) in loans held for
sale
3,578
(1,674
)
(1,795
)
Total
25,845
60,901
6,320
Gross loans, ending
$
1,956,852
$
1,931,007
$
1,765,845
As of December 31, 2024 vs. September
30, 2024
Gross loans were $1.96 billion as of December 31, 2024, up $25.8
million from September 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 $127.4 million, $34.7 million, and $70.4 million,
respectively, for the fourth quarter of 2024, compared with $152.7
million, $35.6 million, and $55.4 million, respectively, for the
third quarter of 2024.
As of December 31, 2024 vs. December
31, 2023
Gross loans were $1.96 billion as of December 31, 2024, up
$191.0 million, from December 31, 2023, primarily due to an
increase in new loan originations of $502.8 million, partially
offset by loan sales of $127.2 million and loan payoffs and
paydowns of $188.2 million.
The following table presents the composition of gross loans by
interest rate type accompanied with the weighted average
contractual rates as of the periods indicated:
($ in thousands)
As of
4Q2024
3Q2024
4Q2023
%
Rate
%
Rate
%
Rate
Fixed rate
33.2
%
5.44
%
35.7
%
5.42
%
35.1
%
5.07
%
Hybrid rate
37.0
5.66
34.7
5.60
33.9
5.15
Variable rate
29.8
8.47
29.6
8.94
31.0
9.15
Gross loans
100.0
%
6.43
%
100.0
%
6.52
%
100.0
%
6.36
%
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 December 31,
2024
Within One Year
One Year Through Five
Years
After Five Years
Total
Amount
Rate
Amount
Rate
Amount
Rate
Amount
Rate
Fixed rate
$
164,941
5.86
%
$
276,216
5.45
%
$
207,774
5.08
%
$
648,931
5.44
%
Hybrid rate
—
—
210,510
4.44
513,438
6.17
723,948
5.66
Variable rate
107,591
7.80
137,220
7.98
339,162
8.88
583,973
8.47
Gross loans
$
272,532
6.63
%
$
623,946
5.67
%
$
1,060,374
6.82
%
$
1,956,852
6.43
%
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 4Q2024 vs.
4Q2024
3Q2024
4Q2023
3Q2024
4Q2023
Allowance for credit losses on loans,
beginning
$
22,960
$
22,760
$
21,617
$
200
$
1,343
Provision for credit losses
1,859
234
537
1,625
1,322
Gross charge-offs
(29
)
(40
)
(236
)
11
207
Gross recoveries
6
6
75
—
(69
)
Net charge-offs
(23
)
(34
)
(161
)
11
138
Allowance for credit losses on loans,
ending
$
24,796
$
22,960
$
21,993
$
1,836
$
2,803
Allowance for credit losses on off-balance
sheet exposure, beginning
$
672
$
458
$
423
$
214
$
249
Provision for (reversal of) credit
losses
(312
)
214
93
(526
)
(405
)
Allowance for credit losses on off-balance
sheet exposure, ending
$
360
$
672
$
516
$
(312
)
$
(156
)
Asset Quality
($ in thousands)
As of and For the Three Months
Ended
Change 4Q2024 vs.
4Q2024
3Q2024
4Q2023
3Q2024
4Q2023
Loans 30-89 days past due and still
accruing
$
8,964
$
10,306
$
9,607
(13.0
)%
(6.7
)%
As a % of gross loans
0.46
%
0.53
%
0.54
%
(0.07
)
(0.08
)
Nonperforming loans(1)
$
7,820
$
3,620
$
6,082
116.0
%
28.6
%
Nonperforming assets(1)
9,057
4,857
6,082
86.5
48.9
Nonperforming loans to gross loans
0.40
%
0.19
%
0.34
%
0.21
0.06
Nonperforming assets to total assets
0.38
0.20
0.28
0.18
0.10
Criticized loans(1)(2)
$
19,570
$
16,500
$
13,349
18.6
%
46.6
%
Criticized loans to gross loans
1.00
%
0.85
%
0.76
%
0.15
0.24
Allowance for credit losses ratios:
As a % of gross loans
1.27
%
1.19
%
1.25
%
0.08
%
0.02
%
As a % of nonperforming loans
317
634
362
(317
)
(45
)
As a % of nonperforming assets
274
473
362
(199
)
(88
)
As a % of criticized loans
127
139
165
(12
)
(38
)
Net charge-offs(3) to average gross
loans(4)
0.00
0.01
0.04
(0.01
)
(0.04
)
(1)
Excludes the guaranteed portion of SBA
& USDA loans that are in liquidation totaling $16.3 million,
$11.1 million and $2.0 million as of December 31, 2024, September
30, 2024 and December 31, 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 1.27%.
- Loans 30-89 days past due and still accruing were $9.0 million
or 0.46% of gross loans as of December 31, 2024, compared with
$10.3 million or 0.53% as of September 30, 2024.
- Nonperforming loans were $7.8 million or 0.40% of gross loans
as of December 31, 2024, compared with $3.6 million or 0.19% as of
September 30, 2024. The increase was mainly driven by three SBA
relationships: one isolated fire damage to a hotel property in
Tucson, AZ, which the Bank is working with the borrower through a
temporary deferment during the repairs, and two separate
relationships in apparel business, which the Bank is in the process
of liquidating and in negotiation to sell the note to the
tenant.
- Nonperforming assets were $9.1 million or 0.38% of total assets
as of December 31, 2024, compared with $4.9 million or 0.20% as of
September 30, 2024. OREO remained the same at $1.2 million as of
December 31, 2024 and September 30, 2024, which is secured by a
mix-use property in Los Angeles Koreatown with 90% guaranteed by
SBA.
- Criticized loans were $19.6 million or 1.00% of gross loans as
of December 31, 2024, compared with $16.5 million or 0.85% as of
September 30, 2024.
- Net charge-offs were $23 thousand or 0.00% of average loans in
the fourth quarter of 2024, compared to net charge-offs of $34
thousand, or 0.01% of average loans in the third quarter of 2024
and net charge-offs of $161 thousand, or 0.04% of average loans in
the fourth quarter of 2023.
Los Angeles Wildfires Impact
The Company’s overall exposure from the Los Angeles wildfires is
limited to $23.5 million (or 1.3% of net loans) based on zip code.
Only three borrowers suffered direct impact from the wildfires,
totaling $6.3 million in outstanding principal balance. Of the
three borrowers, only two borrowers with combined outstanding
principal balance of $2.2 million may require temporary loan
payment adjustments. The Company will continue to monitor the loans
to timely assess both direct and indirect impacts to the Company’s
asset quality.
Deposits
($ in thousands)
As of
% Change 4Q2024 vs.
4Q2024
3Q2024
4Q2023
Amount
%
Amount
%
Amount
%
3Q2024
4Q2023
Noninterest-bearing deposits
$
504,928
24.9
%
$
561,801
27.2
%
$
522,751
28.9
%
(10.1
)%
(3.4
)%
Money market deposits and others
329,095
16.2
343,188
16.6
399,018
22.1
(4.1
)
(17.5
)
Time deposits
1,193,262
58.9
1,159,614
56.2
885,789
49.0
2.9
34.7
Total deposits
$
2,027,285
100.0
%
$
2,064,603
100.0
%
$
1,807,558
100.0
%
(1.8
)%
12.2
%
Estimated uninsured deposits
$
961,687
47.4
%
$
946,406
45.8
%
$
1,156,270
64.0
%
1.6
%
(16.8
)%
As of December 31, 2024 vs. September
30, 2024
Total deposits were $2.03 billion as of December 31, 2024,
reflecting a decrease of $37.3 million or 1.8% from September 30,
2024, primarily due to decreases of $56.9 million in
noninterest-bearing deposits and $14.1 million in money market
deposits, partially offset by an increase of $33.6 million in time
deposits. Customers’ preference for high-rate deposit products
continued to drive the increase in time deposits over money market
deposits. The decrease in noninterest-bearing deposits was
primarily driven by a significant downward shift in market
expectation on the Federal Reserve’s future rate cut trajectory and
an uncertainty of economic and business outlook. Average balance of
noninterest-bearing deposits, however, increased $15.4 million or
2.9% to $543.5 million from $528.1 million continuing the upward
trend started from the beginning of 2024.
As of December 31, 2024 vs. December
31, 2023
Total deposits were $2.03 billion as of December 31, 2024, an
increase of $219.7 million from December 31, 2023, primarily driven
by a $307.5 million increase in time deposits, offset by decreases
of $69.9 million in money market deposits and $17.8 million in
noninterest-bearing deposits. Noninterest-bearing deposits, as a
percentage of total deposits, decreased to 24.9% from 28.9%. The
composition shift to time deposits was primarily due to customers’
preference for high-rate deposit products driven by market rate
increases as a result of the Federal Reserve’s rate increases.
The following table sets forth the maturity of time deposits as
of December 31, 2024:
As of December 31,
2024
($ 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)
$
206,324
$
149,639
$
78,397
$
131,002
$
451
$
565,813
Time deposits ($250 or less)
202,931
123,639
156,542
124,766
19,571
627,449
Total time deposits
$
409,255
$
273,278
$
234,939
$
255,768
$
20,022
$
1,193,262
Weighted average rate
4.89
%
4.86
%
4.77
%
4.25
%
3.98
%
4.71
%
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)
4Q2024
3Q2024
4Q2023
Liquidity Assets:
Cash and cash equivalents
$
134,943
$
166,756
$
91,216
Available-for-sale debt securities
185,909
199,373
194,250
Liquid assets
$
320,852
$
366,129
$
285,466
Liquid assets to total assets
13.6
%
15.3
%
13.3
%
Available Borrowings:
Federal Home Loan Bank—San Francisco
$
401,900
$
397,617
$
363,615
Federal Reserve Bank
215,115
207,782
182,989
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
$
717,015
$
705,399
$
646,604
Total available borrowings to total
assets
30.3
%
29.5
%
30.1
%
Liquid assets and available borrowings to
total deposits
51.2
%
51.9
%
51.6
%
Capital and Capital Ratios
On January 23, 2025, 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 February 20, 2025 to all
shareholders of record as of the close of business on February 6,
2025. 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 did not repurchase share of its common stock during
the fourth quarter of 2024. 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 $9.37 per share through December 31, 2024.
OP Bancorp(1)
Open Bank
Minimum Well
Capitalized
Ratio
Minimum
Capital Ratio+
Conservation
Buffer(2)
Risk-Based Capital Ratios:
Total risk-based capital ratio
12.60
%
12.50
%
10.00
%
10.50
%
Tier 1 risk-based capital ratio
11.35
11.25
8.00
8.50
Common equity tier 1 ratio
11.35
11.25
6.50
7.00
Leverage ratio
9.27
9.20
5.00
4.00
(1)
The capital requirements are only
applicable to the Bank, and the Company's ratios are included for
comparison purpose.
(2)
An additional 2.5% capital conservation
buffer above the minimum capital ratios are required in order to
avoid limitations on distributions, including dividend payments and
certain discretionary bonuses to executive officers.
OP Bancorp
Change 4Q2024 vs.
4Q2024
3Q2024
4Q2023
3Q2024
4Q2023
Risk-Based Capital Ratios:
Total risk-based capital ratio
12.60
%
12.79
%
13.77
%
(0.19
)%
(1.17
)%
Tier 1 risk-based capital ratio
11.35
11.57
12.52
(0.22
)
(1.17
)
Common equity tier 1 ratio
11.35
11.57
12.52
(0.22
)
(1.17
)
Leverage ratio
9.27
9.30
9.57
(0.03
)
(0.30
)
Risk-weighted Assets ($ in thousands)
$
1,941,549
$
1,876,698
$
1,667,067
3.46
16.46
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 impacts of recent wildfires affecting the
Los Angeles Basin, which have dramatically affected our customers,
communities and employees, and which will have as-yet-unquantified
effects upon the value of our loans, the adequacy of our loan loss
reserves, and the value of the associated collateral; 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; the geographic concentration of
our customer base and our earning assets; 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; our ability to protect and to use our
trademarks and related intellectual property; 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 (including but not limited to the
above-described wildfires affecting the Los Angeles Metropolitan
Area), 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 4Q2024 vs.
4Q2024
3Q2024
4Q2023
3Q2024
4Q2023
Assets
Cash and due from banks
$
12,268
$
24,519
$
16,948
(50.0
)%
(27.6
)%
Interest-bearing deposits in other
banks
122,675
142,237
74,268
(13.8
)
65.2
Cash and cash equivalents
134,943
166,756
91,216
(19.1
)
47.9
Available-for-sale debt securities, at
fair value
185,909
199,373
194,250
(6.8
)
(4.3
)
Other investments
16,437
16,520
16,276
(0.5
)
1.0
Loans held for sale
4,581
8,160
1,795
(43.9
)
155.2
CRE loans
980,247
966,472
885,585
1.4
10.7
SBA loans
253,710
252,379
239,692
0.5
5.8
C&I loans
213,097
212,476
120,970
0.3
76.2
Home mortgage loans
509,524
499,666
518,024
2.0
(1.6
)
Consumer loans
274
14
1,574
n/m
(82.6
)
Gross loans receivable
1,956,852
1,931,007
1,765,845
1.3
10.8
Allowance for credit losses
(24,796
)
(22,960
)
(21,993
)
8.0
12.7
Net loans receivable
1,932,056
1,908,047
1,743,852
1.3
10.8
Premises and equipment, net
5,449
4,961
5,248
9.8
3.8
Accrued interest receivable, net
9,188
9,479
8,259
(3.1
)
11.2
Servicing assets
10,834
10,877
11,741
(0.4
)
(7.7
)
Company owned life insurance
22,912
22,739
22,233
0.8
3.1
Deferred tax assets, net
14,893
12,288
13,309
21.2
11.9
Other real estate owned
1,237
1,237
—
—
n/m
Operating right-of-use assets
7,415
7,870
8,497
(5.8
)
(12.7
)
Other assets
20,159
19,673
31,054
2.5
(35.1
)
Total assets
$
2,366,013
$
2,387,980
$
2,147,730
(0.9
)%
10.2
%
Liabilities and Shareholders'
Equity
Liabilities:
Noninterest-bearing
$
504,928
$
561,801
$
522,751
(10.1
)%
(3.4
)%
Money market and others
329,095
343,188
399,018
(4.1
)
(17.5
)
Time deposits greater than $250
565,813
564,547
433,892
0.2
30.4
Other time deposits
627,449
595,067
451,897
5.4
38.8
Total deposits
2,027,285
2,064,603
1,807,558
(1.8
)
12.2
Federal Home Loan Bank advances
95,000
75,000
105,000
26.7
(9.5
)
Accrued interest payable
16,067
19,483
12,628
(17.5
)
27.2
Operating lease liabilities
7,857
8,417
9,341
(6.7
)
(15.9
)
Other liabilities
14,811
16,874
20,577
(12.2
)
(28.0
)
Total liabilities
2,161,020
2,184,377
1,955,104
(1.1
)
10.5
Shareholders' equity:
Common stock
73,697
73,697
76,280
—
(3.4
)
Additional paid-in capital
11,928
11,713
10,942
1.8
9.0
Retained earnings
134,781
131,588
120,855
2.4
11.5
Accumulated other comprehensive loss
(15,413
)
(13,395
)
(15,451
)
15.1
(0.2
)
Total shareholders’ equity
204,993
203,603
192,626
0.7
6.4
Total liabilities and shareholders'
equity
$
2,366,013
$
2,387,980
$
2,147,730
(0.9
)%
10.2
%
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
($ in thousands, except share and per
share data)
For the Three Months
Ended
% Change 4Q2024 vs.
4Q2024
3Q2024
4Q2023
3Q2024
4Q2023
Interest income
Interest and fees on loans
$
31,729
$
31,885
$
28,914
(0.5
)%
9.7
%
Interest on available-for-sale debt
securities
1,551
1,626
1,484
(4.6
)
4.5
Other interest income
1,771
1,788
1,385
(1.0
)
27.9
Total interest income
35,051
35,299
31,783
(0.7
)
10.3
Interest expense
Interest on deposits
17,182
17,921
14,127
(4.1
)
21.6
Interest on borrowings
940
872
1,426
7.8
(34.1
)%
Total interest expense
18,122
18,793
15,553
(3.6
)
16.5
Net interest income
16,929
16,506
16,230
2.6
4.3
Provision for credit losses
1,547
448
630
245.3
145.6
Net interest income after provision for
credit losses
15,382
16,058
15,600
(4.2
)
(1.4
)
Noninterest income
Service charges on deposits
967
889
557
8.8
73.6
Loan servicing fees, net of
amortization
858
693
540
23.8
58.9
Gain on sale of loans
2,197
2,088
1,996
5.2
10.1
Other income
395
570
587
(30.7
)
(32.7
)
Total noninterest income
4,417
4,240
3,680
4.2
20.0
Noninterest expense
Salaries and employee benefits
8,277
8,031
7,646
3.1
8.3
Occupancy and equipment
1,682
1,676
1,616
0.4
4.1
Data processing and communication
594
634
644
(6.3
)
(7.8
)
Professional fees
388
346
391
12.1
(0.8
)
FDIC insurance and regulatory
assessments
529
391
237
35.3
123.2
Promotion and advertising
82
151
86
(45.7
)
(4.7
)
Directors’ fees
151
154
145
(1.9
)
4.1
Foundation donation and other
contributions
480
549
524
(12.6
)
(8.4
)
Other expenses
950
788
694
20.6
36.9
Total noninterest expense
13,133
12,720
11,983
3.2
9.6
Income before income tax expense
6,666
7,578
7,297
(12.0
)
(8.6
)
Income tax expense
1,695
2,142
2,125
(20.9
)
(20.2
)
Net income
$
4,971
$
5,436
$
5,172
(8.6
)%
(3.9
)%
Book value per share
$
13.83
$
13.75
$
12.84
0.6
%
7.7
%
Earnings per share - basic
0.33
0.36
0.34
(8.3
)
(2.9
)
Earnings per share - diluted
0.33
0.36
0.34
(8.3
)
(2.9
)
Shares of common stock outstanding, at
period end
14,819,866
14,811,671
15,000,436
0.1
%
(1.2
)%
Weighted average shares:
- Basic
14,816,416
14,812,118
15,027,110
—
%
(1.4
)%
- Diluted
14,816,416
14,812,118
15,034,822
—
(1.5
)
KEY RATIOS
For the Three Months
Ended
% Change 4Q2024 vs.
4Q2024
3Q2024
4Q2023
3Q2024
4Q2023
Return on average assets (ROA)(1)
0.84
%
0.94
%
0.96
%
(0.1
)%
(0.1
)%
Return on average equity (ROE)(1)
9.75
10.95
11.18
(1.2
)
(1.4
)
Net interest margin(1)
2.96
2.95
3.12
—
(0.2
)
Efficiency ratio
61.52
61.31
60.19
0.2
1.3
Total risk-based capital ratio
12.60
%
12.79
%
13.77
%
(0.2
)%
(1.2
)%
Tier 1 risk-based capital ratio
11.35
11.57
12.52
(0.2
)
(1.2
)
Common equity tier 1 ratio
11.35
11.57
12.52
(0.2
)
(1.2
)
Leverage ratio
9.27
9.30
9.57
—
(0.3
)
(1)
Annualized.
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
($ in thousands, except share and per
share data)
For the Twelve Months
Ended
4Q2024
4Q2023
% Change
Interest income
Interest and fees on loans
$
124,361
$
110,463
12.6
%
Interest on available-for-sale debt
securities
6,227
6,131
1.6
Other interest income
7,032
5,071
38.7
Total interest income
137,620
121,665
13.1
Interest expense
Interest on deposits
68,121
49,435
37.8
Interest on borrowings
3,891
3,543
9.8
Total interest expense
72,012
52,978
35.9
Net interest income
65,608
68,687
(4.5
)
Provision for credit losses
2,757
1,651
67.0
Net interest income after provision for
credit losses
62,851
67,036
(6.2
)
Noninterest income
Service charges on deposits
3,261
2,123
53.6
%
Loan servicing fees, net of
amortization
2,898
2,449
18.3
Gain on sale of loans
8,313
7,843
6.0
Other income
1,955
1,766
10.7
Total noninterest income
16,427
14,181
15.8
Noninterest expense
Salaries and employee benefits
31,717
29,593
7.2
Occupancy and equipment
6,673
6,490
2.8
Data processing and communication
2,245
2,109
6.4
Professional fees
1,535
1,571
(2.3
)
FDIC insurance and regulatory
assessments
1,672
1,457
14.8
Promotion and advertising
533
614
(13.2
)
Directors’ fees
640
680
(5.9
)
Foundation donation and other
contributions
2,108
2,400
(12.2
)
Other expenses
3,076
2,812
9.4
Total noninterest expense
50,199
47,726
5.2
Income before income tax expense
29,079
33,491
(13.2
)
Income tax expense
8,010
9,573
(16.3
)
Net income
$
21,069
$
23,918
(11.9
)%
Book value per share
$
13.83
$
12.84
7.7
%
Earnings per share - basic
1.39
1.55
(10.3
)
Earnings per share - diluted
1.39
1.55
(10.3
)
Shares of common stock outstanding, at
period end
14,819,866
15,000,436
(1.2
)%
Weighted average shares:
- Basic
14,871,876
15,149,597
(1.8
)%
- Diluted
14,871,876
15,158,857
(1.9
)
KEY RATIOS
For the Twelve Months
Ended
4Q2024
4Q2023
% Change
Return on average assets (ROA)
0.92
%
1.13
%
(0.2
)%
Return on average equity (ROE)
10.68
13.05
(2.4
)
Net interest margin
2.99
3.37
(0.4
)
Efficiency ratio
61.19
57.59
3.6
Total risk-based capital ratio
12.60
%
13.77
%
(1.2
)%
Tier 1 risk-based capital ratio
11.35
12.52
(1.2
)
Common equity tier 1 ratio
11.35
12.52
(1.2
)
Leverage ratio
9.27
9.57
(0.3
)
ASSET QUALITY
($ in thousands)
As of and For the Three Months
Ended
4Q2024
3Q2024
4Q2023
Nonaccrual loans(1)
$
7,820
$
3,620
$
6,082
Loans 90 days or more past due,
accruing
—
—
—
Nonperforming loans
7,820
3,620
6,082
OREO
1,237
1,237
—
Nonperforming assets
$
9,057
$
4,857
$
6,082
Criticized loans by risk categories:
Special mention loans
$
6,309
$
4,540
$
1,428
Classified loans(1)(2)
13,261
11,960
11,921
Total criticized loans
$
19,570
$
16,500
$
13,349
Criticized loans by loan type:
CRE loans
$
9,042
$
5,249
$
4,995
SBA loans
10,128
10,144
5,864
C&I loans
400
1,107
—
Home mortgage loans
—
—
2,490
Total criticized loans
$
19,570
$
16,500
$
13,349
Nonperforming loans / gross loans
0.40
%
0.19
%
0.34
%
Nonperforming assets / gross loans plus
OREO
0.46
0.25
0.34
Nonperforming assets / total assets
0.38
0.20
0.28
Classified loans / gross loans
0.68
0.62
0.68
Criticized loans / gross loans
1.00
0.85
0.76
Allowance for credit losses ratios:
As a % of gross loans
1.27
%
1.19
%
1.25
%
As a % of nonperforming loans
317
634
362
As a % of nonperforming assets
274
473
362
As a % of classified loans
187
192
184
As a % of criticized loans
127
139
165
Net charge-offs
$
23
$
34
$
161
Net charge-offs(3) to average gross
loans(4)
0.00
%
0.01
%
0.04
%
(1)
Excludes the guaranteed portion of SBA
& USDA loans that are in liquidation totaling $16.3 million,
$11.1 million and $2.0 million as of December 31, 2024, September
30, 2024 and December 31, 2023, respectively.
(2)
Consists of Substandard, Doubtful and Loss
categories.
(3)
Annualized.
(4)
Includes loans held for sale.
($ in thousands)
4Q2024
3Q2024
4Q2023
Accruing delinquent loans 30-89 days past
due
30-59 days
$
3,159
$
4,095
$
5,945
60-89 days
5,805
6,211
3,662
Total
$
8,964
$
10,306
$
9,607
AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE
ANALYSIS
For the Three Months
Ended
4Q2024
3Q2024
4Q2023
($ 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
$
120,170
$
1,456
4.74
%
$
109,003
$
1,474
5.29
%
$
78,496
$
1,076
5.36
%
Federal funds sold and other
investments
16,478
315
7.63
16,432
314
7.65
16,115
309
7.66
Available-for-sale debt securities, at
fair value
193,738
1,551
3.20
199,211
1,626
3.26
189,462
1,484
3.13
CRE loans
960,639
14,653
6.07
944,818
14,759
6.21
892,092
13,104
5.83
SBA loans
269,842
6,542
9.65
270,282
7,107
10.46
255,692
7,055
10.95
C&I loans
217,816
4,086
7.46
187,163
3,642
7.74
122,950
2,416
7.80
Home mortgage loans
499,151
6,441
5.16
503,148
6,364
5.06
515,840
6,315
4.90
Consumer loans
205
7
13.55
541
13
9.37
966
24
9.92
Loans(2)
1,947,653
31,729
6.49
1,905,952
31,885
6.66
1,787,540
28,914
6.43
Total interest-earning assets
2,278,039
35,051
6.12
2,230,598
35,299
6.30
2,071,613
31,783
6.10
Noninterest-earning assets
85,218
88,747
86,874
Total assets
$
2,363,257
$
2,319,345
$
2,158,487
Interest-bearing liabilities:
Money market deposits and others
$
335,197
$
3,100
3.68
%
$
343,429
$
3,601
4.17
%
$
377,304
$
3,993
4.20
%
Time deposits
1,151,112
14,082
4.87
1,127,078
14,320
5.05
866,142
10,134
4.64
Total interest-bearing deposits
1,486,309
17,182
4.60
1,470,507
17,921
4.85
1,243,446
14,127
4.51
Borrowings
86,525
940
4.32
80,326
872
4.32
118,764
1,426
4.76
Total interest-bearing liabilities
1,572,834
18,122
4.58
1,550,833
18,793
4.82
1,362,210
15,553
4.53
Noninterest-bearing liabilities:
Noninterest-bearing deposits
543,546
528,126
569,965
Other noninterest-bearing liabilities
42,925
41,892
41,312
Total noninterest-bearing liabilities
586,471
570,018
611,277
Shareholders’ equity
203,952
198,494
185,000
Total liabilities and shareholders’
equity
$
2,363,257
2,319,345
2,158,487
Net interest income / interest rate
spreads
$
16,929
1.54
%
$
16,506
1.48
%
$
16,230
1.57
%
Net interest margin
2.96
%
2.95
%
3.12
%
Cost of deposits & cost of funds:
Total deposits / cost of deposits
$
2,029,855
$
17,182
3.37
%
$
1,998,633
$
17,921
3.57
%
$
1,813,411
$
14,127
3.09
%
Total funding liabilities / cost of
funds
2,116,380
18,122
3.41
2,078,959
18,793
3.60
1,932,175
15,553
3.19
(1)
Annualized.
(2)
Includes loans held for sale.
For the Twelve Months
Ended
4Q2024
4Q2023
($ in thousands)
Average
Balance
Interest
and Fees
Yield/
Rate
Average
Balance
Interest
and Fees
Yield/
Rate
Interest-earning assets:
Interest-bearing deposits in other
banks
$
109,579
$
5,766
5.26
%
$
78,676
$
4,040
5.14
%
Federal funds sold and other
investments
16,371
1,266
7.74
14,963
1,031
6.89
Available-for-sale debt securities, at
fair value
194,969
6,227
3.19
202,167
6,131
3.03
CRE loans
929,890
56,883
6.12
857,124
48,312
5.64
SBA loans
263,442
27,978
10.62
260,507
28,514
10.95
C&I loans
178,533
13,765
7.71
119,135
9,189
7.71
Home mortgage loans
504,030
25,648
5.09
507,125
24,384
4.81
Consumer & other loans
835
87
10.32
987
64
6.51
Loans(1)
1,876,730
124,361
6.63
1,744,878
110,463
6.33
Total interest-earning assets
2,197,649
137,620
6.26
2,040,684
121,665
5.96
Noninterest-earning assets
87,745
84,757
Total assets
$
2,285,394
$
2,125,441
Interest-bearing liabilities:
Money market deposits and others
$
346,104
$
14,135
4.08
%
$
374,116
$
13,830
3.70
%
Time deposits
1,084,107
53,986
4.98
841,804
35,605
4.23
Total interest-bearing deposits
1,430,211
68,121
4.76
1,215,920
49,435
4.07
Borrowings
88,186
3,891
4.41
77,114
3,543
4.59
Total interest-bearing liabilities
1,518,397
72,012
4.74
1,293,034
52,978
4.10
Noninterest-bearing liabilities:
Noninterest-bearing deposits
528,877
613,797
Other noninterest-bearing liabilities
40,839
35,377
Total noninterest-bearing liabilities
569,716
649,174
Shareholders’ equity
197,281
183,233
Total liabilities and shareholders’
equity
$
2,285,394
2,125,441
Net interest income / interest rate
spreads
$
65,608
1.52
%
$
68,687
1.86
%
Net interest margin
2.99
%
3.37
%
Cost of deposits & cost of funds:
Total deposits / cost of deposits
$
1,959,088
$
68,121
3.48
%
1,829,717
$
49,435
2.70
%
Total funding liabilities / cost of
funds
2,047,274
72,012
3.52
1,906,831
52,978
2.78
(1)
Includes loans held for sale.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250123018544/en/
Investor Relations OP Bancorp Christine Oh EVP & CFO
213.892.1192 Christine.oh@myopenbank.com
OP Bancorp (NASDAQ:OPBK)
과거 데이터 주식 차트
부터 12월(12) 2024 으로 1월(1) 2025
OP Bancorp (NASDAQ:OPBK)
과거 데이터 주식 차트
부터 1월(1) 2024 으로 1월(1) 2025
