EX-99.1 2 opbk8-kerx2025xq2xex991.htm EX-99.1 Document

Exhibit 99.1
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OP BANCORP REPORTS NET INCOME FOR SECOND QUARTER 2025
OF $6.3 MILLION AND DILUTED EARNINGS PER SHARE OF $0.42

Second Quarter 2025 Highlights compared with First Quarter 2025:
•Financial Results:
◦Net income of $6.3 million, compared to $5.6 million
◦Diluted earnings per share (“EPS”) of $0.42, compared to $0.37
◦Net interest income of $19.7 million, compared to $17.4 million
◦Net interest margin of 3.23%, compared to 3.01%
◦Provision for credit losses of $1.2 million, compared to $736 thousand
◦Total assets of $2.56 billion, compared to $2.51 billion
◦Gross loans of $2.07 billion, compared to $2.04 billion
◦Total deposits of $2.25 billion, compared to $2.19 billion
•Credit Quality:
◦Allowance for credit losses on loans to gross loans of 1.27%, compared to 1.24%
◦Net charge-offs (1) to average gross loans of 0.06%, compared to 0.02%
◦Loans past due 30-89 days to gross loans of 0.47%, compared to 0.32%
◦Nonperforming loans to gross loans of 0.43%, compared to 0.51%
◦Criticized loans (2) to gross loans of 1.15%, compared to 1.13%
•Capital Levels:
◦Remained well-capitalized with a Common Equity Tier 1 (“CET1”) ratio of 11.01%
◦Book value per share increased to $14.36, compared to $14.09
◦Paid quarterly cash dividend of $0.12 per share for the periods
___________________________________________________________
(1)Annualized.
(2)Includes special mention, substandard, doubtful, and loss categories.
LOS ANGELES, July 24, 2025 — OP Bancorp (the “Company”) (NASDAQ: OPBK), the holding company of Open Bank (the “Bank”), today reported its financial results for the second quarter of 2025. The Company reported net income of $6.3 million, or $0.42 diluted EPS, compared with $5.6 million, or $0.37 diluted EPS, for the first quarter of 2025, and $5.4 million, or $0.36 per diluted EPS, for the second quarter of 2024.
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Sang K. Oh, President and Chief Executive Officer:

“I am honored to step into the role of Chief Executive Officer. As we look ahead, my priorities will be to strengthen our core banking operations, deepen customer engagement, and uphold the highest standards of trust and compliance. I am committed to delivering long-term value for our shareholders, supporting our customer’s financial goals, empowering our talented teams, and fostering a culture of integrity across the Company,” said Sang K. Oh, President and Chief Executive Officer.

Mr. Oh continued, “This was a solid quarter for OP Bancorp as we continued to execute on our clearly defined path to enhanced profitability. Our results were highlighted by sustained growth in loan and deposit portfolios, an expanded net interest margin, a more favorable deposit mix and an improved efficiency, all while continuing to maintain strong credit quality and capital position. We are also proud to announce the opening of our new full-service branch in Garden Grove, California, further expanding our footprint and enhancing accessibility for our customers in the region,” said Sang K. Oh, President and Chief Executive Officer.”



2

SELECTED FINANCIAL HIGHLIGHTS
($ in thousands, except per share data)As of and For the Quarter% or Basis Point Change 2Q2025 vs.
2Q20251Q20252Q20241Q20252Q2024
Selected Income Statement Data:
Net interest income$19,721 $17,418 $16,194 13 %22 %
Provision for credit losses1,206 736 617 64 95 
Noninterest income3,968 4,816 4,184 (18)(5)
Noninterest expense14,037 13,814 12,189 2 15 
Income tax expense2,113 2,124 2,136 (1)(1)
Net income6,333 5,560 5,436 14 17 
Diluted EPS0.42 0.37 0.36 14 17 
Selected Balance Sheet Data:
Gross loans
$2,071,580 $2,043,885 $1,870,106 1 %11 %
Total deposits2,254,728 2,189,871 1,940,821 3 16 
Total assets2,563,595 2,512,971 2,290,680 2 12 
Average loans (1)
2,095,168 2,005,044 1,843,284 4 14 
Average deposits2,223,575 2,083,890 1,970,320 7 13 
Credit Quality:
Nonperforming loans$8,916 $10,412 $4,389 (14)%103 %
Nonperforming loans to gross loans0.43 %0.51 %0.23 %(8) bps20 bps
Criticized loans (2) to gross loans
1.15 1.13 0.88 2 bps27 bps
Net (charge-offs) recoveries (3) to average gross loans
(0.06)(0.02)0.00 (4) bps(6) bps
Allowance for credit losses on loans to gross loans1.27 1.24 1.22 3 bps5 bps
Allowance for credit losses on loans to nonperforming loans295 244 519 51 %(224)%
Financial Ratios:
Return on average assets ("ROA") (3)
1.00 %0.92 %0.95 %8 bps5 bps
Return on average equity ("ROE") (3)
11.97 10.73 11.23 124 bps74 bps
Net interest margin (3)
3.23 3.01 2.96 22 bps27 bps
Efficiency ratio (4)
59.25 62.13 59.81 (288) bps(56) bps
CET1 capital11.01 10.97 12.01 4 bps(100) bps
Tier 1 leverage capital8.96 9.22 9.28 (26) bps(32) bps
Book value per common share$14.36 $14.09 $13.23 2 %9 %
(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.


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INCOME STATEMENT HIGHLIGHTS
Net Interest Income and Net Interest Margin
($ in thousands)For the Three Months Ended% Change 2Q2025 vs.
2Q20251Q20252Q20241Q20252Q2024
Interest Income
Interest income$37,665 $34,859 $34,357 8 %10 %
Interest expense17,944 17,441 18,163 3 (1)
Net interest income$19,721 $17,418 $16,194 13 %22 %

($ in thousands)For the Three Months EndedAverage Yield/Rate Change 2Q2025 vs.
2Q20251Q20252Q2024
Interest Income/Expense
Average Yield/Rate(1)
Interest Income/Expense
Average Yield/Rate(1)
Interest Income/Expense
Average Yield/Rate(1)
1Q20252Q2024
Interest-earning Assets:
Loans$34,263 6.56 %$31,689 6.39 %$30,605 6.67 %17 bps(11) bps
Total interest-earning assets37,665 6.18 34,859 6.04 34,357 6.29 14 bps(11) bps
Interest-bearing Liabilities:
Interest-bearing deposits17,475 4.18 16,608 4.31 17,343 4.84 (13) bps(66) bps
Total interest-bearing liabilities17,944 4.18 17,441 4.31 18,163 4.81 (13) bps(63) bps
Ratios:
Net interest income / interest rate spreads19,721 2.00 17,418 1.73 16,194 1.48 27 bps52 bps
Net interest margin
3.23 3.01 2.96 22 bps27 bps
Total deposits / cost of deposits17,475 3.15 16,608 3.23 17,343 3.54 (8) bps(39) bps
Total funding liabilities / cost of funds17,944 3.17 17,441 3.27 18,163 3.57 (10) bps(40) bps
(1)Annualized.

($ in thousands)For the Three Months EndedAverage Yield Change 2Q2025 vs.
2Q20251Q20252Q2024
Interest Income
Average Yield(1)
Interest Income
Average Yield(1)
Interest Income
Average Yield(1)
1Q20252Q2024
Loan Yield Component:
Contractual interest rate$33,405 6.39 %$31,240 6.30 %$29,719 6.48 %9 bps(9) bps
Accretion of SBA loan discount(2)
785 0.15 683 0.14 1,087 0.24 1 bps(9) bps
Amortization of net deferred fees(42)(0.01)(106)(0.02)(44)(0.01)1 bps0 bps
Amortization of premium(392)(0.07)(490)(0.10)(396)(0.09)3 bps2 bps
Net interest recognized on nonaccrual loans(36)(0.01)43 0.01 (3)(0.00 )(2) bps(1) bps
Prepayment penalty income and other fees(3)
543 0.11 319 0.06 242 0.05 5 bps6 bps
Yield on loans$34,263 6.56 %$31,689 6.39 %$30,605 6.67 %17 bps(11) bps
(1)Annualized.
(2)Includes discount accretion from SBA loan payoffs of $293 thousand, $193 thousand and $564 thousand for the three months ended June 30, 2025, March 31, 2025 and June 30, 2024, respectively.
(3)Includes prepayment penalty income of $148 thousand, $67 thousand and $26 thousand for the three months ended June 30, 2025, March 31, 2025 and June 30, 2024, respectively, from Commercial Real Estate (“CRE”) loans.
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Second Quarter 2025 vs. First Quarter 2025
Net interest income increased $2.3 million, or 13%, primarily due to loan growth, higher loan yields and lower deposit costs, partially offset by deposit growth. Net interest margin increased 22 basis points to 3.23% from 3.01%.
◦Interest income on loans increased $2.6 million, primarily driven by a $90.1 million increase in average loan balances and a 17 basis point improvement in loan yields, reflecting higher new loans rates compared to the prior quarter. The increase in loan yields also benefited from higher prepayment penalties and other related income, and lower amortization of premiums.
◦Interest expense on deposits increased $867 thousand, primarily due to a $114.2 million increase in average interest-bearing deposit balances, partially offset by a 13 basis point decline in interest-bearing deposit costs, reflecting the repricing of time deposits in response to the downward shift in federal funds rate that begun in the latter part of 2024.

Second Quarter 2025 vs. Second Quarter 2024
Net interest income increased $3.5 million, or 22%, primarily due to loan growth. Net interest margin increased 27 basis points to 3.23% from 2.96%.
◦Interest income on loans increased $3.7 million, primarily driven by a $251.9 million increase in average loan balances, partially offset by an 11 basis point decline in loan yields. The decline in loan yields was attributable to new loan originations at lower rates following the recent decrease in the federal funds rate.
◦Interest expense on deposits remained relatively unchanged, as the impact of a $234.9 million increase in average interest-bearing deposit balances was offset by a 66 basis point decline in interest-bearing deposit costs. The decline in deposit costs was primarily due to the repricing of deposit products in response to the recent decrease in federal funds rate.

Provision for Credit Losses
($ in thousands)For the Three Months Ended $ Change 2Q2025 vs.
2Q20251Q20252Q20241Q20252Q2024
Provision for credit losses on loans$1,255 $687 $627 $568 $628 
Provision for (reversal of) credit losses on off-balance sheet exposure(49)49 (10)(98)(39)
Provision for credit losses$1,206 $736 $617 $470 $589 

Second Quarter 2025 vs. First Quarter 2025
Provision for credit losses on loans increased $568 thousand, primarily due to higher historical loss factors from risk rating downgrades within the CRE portfolio and net charge-offs recognized during the quarter, partially offset by an improved qualitative outlook.

Second Quarter 2025 vs. Second Quarter 2024
Provision for credit losses on loans increased $628 thousand, primarily due to higher historical loss factors from risk rating downgrades and net charge-offs recognized during the quarter, partially offset by an improved qualitative outlook.
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Noninterest Income
($ in thousands)For the Three Months Ended% Change 2Q2025 vs.
2Q20251Q20252Q20241Q20252Q2024
Noninterest Income
Service charges on deposits$1,017 $1,000 $793 2 %28 %
Loan servicing fees, net of amortization900 1,007 575 (11)57 
Gains on sale of loans1,441 2,019 2,325 (29)(38)
Other income610 790 491 (23)24 
Total noninterest income$3,968 $4,816 $4,184 (18)%(5)%

Second Quarter 2025 vs. First Quarter 2025
Noninterest income decreased $848 thousand, or 18%, primarily due to lower gains on sale of loans, other income and loan servicing fees.

◦Gains on sale of loans declined $578 thousand, primarily due to reduced SBA loan sale activity and lower average premium rates. During the quarter, the Bank sold $25.3 million in SBA loans at an average premium rate of 7.05%, compared to the sale of $31.1 million at an average premium rate of 8.08%.
◦Other income decreased $180 thousand, primarily due to a reduction in credit-related fees collected.
◦Loan servicing fees, net of amortization, decreased $107 thousand, primarily due to increased amortization of servicing assets, driven by elevated payoff activities in servicing portfolio.

Second Quarter 2025 vs. Second Quarter 2024
Noninterest income decreased $216 thousand, or 5%, primarily due to lower gains on sale of loans, partially offset by higher loan servicing fees and service charges on deposits.
◦Gain on sale of loans declined $884 thousand, primarily due to reduced SBA loan sale activity and lower average premium rates. The Bank sold $25.3 million in SBA loans at an average premium rate of 7.05%, compared to the sale of $32.1 million at an average premium rate of 8.58%.
◦Loan servicing fees, net of amortization, increased $325 thousand, primarily due to reduced amortization expense of servicing assets, resulting from decreased loan payoff activities.
◦Service charges on deposits increased $224 thousand, primarily driven by higher deposit analysis fees, reflecting continued growth in the number of business customer accounts.
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Noninterest Expense
($ in thousands)For the Three Months Ended% Change 2Q2025 vs.
2Q20251Q20252Q20241Q20252Q2024
Noninterest Expense
Salaries and employee benefits$9,075 $8,776 $7,568 3 %20 %
Occupancy and equipment1,584 1,581 1,660 0 (5)
Data processing and communication306 296 530 3 (42)
Professional fees418 407 406 3 3 
FDIC insurance and regulatory assessments506 487 378 4 34 
Promotion and advertising232 156 151 49 54 
Directors’ fees198 180 178 10 11 
Foundation donation and other contributions636 556 539 14 18 
Other expenses1,082 1,375 779 (21)39 
Total noninterest expense$14,037 $13,814 $12,189 2 %15 %

Second Quarter 2025 vs. First Quarter 2025
Noninterest expense increased $223 thousand, or 2%, primarily due to higher salaries and employee benefits, foundation donation and other contributions, and promotion and advertising, partially offset by a reduction in other expenses.
◦Salaries and employee benefits increased $299 thousand, primarily due to higher incentive accruals and merit-based salary adjustments, partially offset by lower vacation and payroll tax accruals. Higher health insurance costs and lower loan origination costs also contributed to the increase in employee benefits.
◦Foundation donation and other contributions increased $80 thousand, primarily due to higher donation accruals for the Open Stewardship Foundation, reflecting increased net income.
◦Promotion and advertising increased $76 thousand, primarily due to a one-time accrual adjustment recorded during the second quarter of 2025.
◦Other expenses decreased $293 thousand, primarily reflecting a return to normal credit-related expense level following an abnormally high amount in the prior quarter.

Second Quarter 2025 vs. Second Quarter 2024
Noninterest expense increased $1.8 million, or 15%, primarily due to higher salaries and employee benefits, and other expenses, as well as increased FDIC insurance and regulatory assessments, partially offset by a reduction in data processing and communication.
◦Salaries and employee benefits increased $1.5 million, primarily due to higher incentive accruals as well as staffing growth and annual merit-based salary adjustments.
◦Other expenses increased $303 thousand, primarily due to higher credit-related and business development expenses.
◦FDIC insurance and regulatory assessments increased $128 thousand, primarily due to higher FDIC assessment charges. The increase was largely driven by growth in the Bank’s total assets, which expanded the assessment base, along with higher assessment rates.
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◦Data processing and communication decreased $224 thousand, primarily due to contractual credits received following the conversion to a new core banking system in the fourth quarter of 2024.

Income Tax Expense

Second Quarter 2025 vs. First Quarter 2025
Income tax expense was $2.1 million for both periods. The effective tax rate decreased to 25.02% from 27.64%. The decrease in effective tax rate was primarily attributable to the revaluation of deferred tax assets resulting from recent California state tax legislation. Additional contributing factors included changes in estimates related to the adoption of an enhanced interim state tax apportionment methodology and increased tax losses from a new investment in low-income housing partnerships.

Second Quarter 2025 vs. Second Quarter 2024
Income tax expense was $2.1 million for both periods. The effective tax rate decreased to 25.02% from 28.21%. The decrease in effective tax rate was primarily attributable to the revaluation of deferred tax assets resulting from recent California state tax legislation. Additional contributing factors included changes in estimates related to the adoption of an enhanced interim state tax apportionment methodology and higher discrete benefits associated with stock-based compensation.

BALANCE SHEET HIGHLIGHTS

Loans
($ in thousands)As of% Change 2Q2025 vs.
2Q20251Q20252Q20241Q20252Q2024
CRE loans$1,021,431 $1,023,278 $931,284 0 %10 %
SBA loans263,424 258,778 242,395 2 9 
C&I loans193,359 202,250 188,557 (4)3 
Home mortgage loans593,256 559,543 506,873 6 17 
Consumer & other loans110 36 997 206 (89)
Gross loans$2,071,580 $2,043,885 $1,870,106 1 %11 %


The following table presents loan originations and the corresponding weighted average contractual rates for the periods indicated:
($ in thousands)For the Three Months Ended% Change in Amounts 2Q2025 vs.
2Q20251Q20252Q20241Q20252Q2024
Amount
Rate
Amount
Rate
Amount
Rate
CRE loans$39,734 7.00 %$69,889 7.03 %$48,284 7.49 %(43)%(18)%
SBA loans
33,811 8.64 18,206 8.81 13,570 9.80 86 149 
C&I loans3,136 7.72 506 8.18 5,961 8.05 520 (47)
Home mortgage loans54,837 6.64 74,004 6.42 13,539 7.33 (26)305 
Consumer & other loans— — 40 6.05 — —(100)— 
Gross loans (1)
$131,518 7.29 %$162,645 6.95 %$81,354 7.89 %(19)%62 %
(1)Excludes changes in line utilization.

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The following table summarizes the loan activity for the periods indicated:
($ in thousands)For the Three Months Ended
2Q20251Q20252Q2024
Beginning Balance$2,043,885 $1,956,852 $1,804,987 
Originations131,518 162,645 81,354 
Net change in line utilization27,287 12,841 57,698 
Purchases1,750 12,028 5,559 
Sales(26,734)(36,086)(32,102)
Payoffs & paydowns(90,923)(65,572)(56,612)
Decrease (increase) in loans held for sale(15,461)26 9,590 
Other258 1,151 (368)
Total27,695 87,033 65,119 
Ending balance$2,071,580 $2,043,885 $1,870,106 

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
2Q20251Q20252Q2024
%Rate%Rate%Rate
Fixed rate30.8 %5.54 %32.8 %5.55 %36.2 %5.39 %
Hybrid rate39.9 5.81 37.4 5.71 33.9 5.42 
Variable rate29.3 8.16 29.8 8.20 29.9 9.19 
Gross loans100.0 %6.42 %100.0 %6.40 %100.0 %6.54 %

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 June 30, 2025
Within One YearOne Year Through Five YearsAfter Five YearsTotal
AmountRateAmountRateAmountRateAmountRate
Fixed rate$164,959 5.51 %$276,925 5.92 %$195,603 5.04 %$637,487 5.54 %
Hybrid rate— — 212,624 4.58 614,965 6.23 827,589 5.81 
Variable rate83,691 7.87 143,054 7.80 379,759 8.37 606,504 8.16 
Gross loans$248,650 6.30 %$632,603 5.89 %$1,190,327 6.72 %$2,071,580 6.42 %

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Allowance for Credit Losses

The following table summarizes the activity in the allowance for credit losses for the periods presented:
($ in thousands)As of and For the Three Months Ended $ Change 2Q2025 vs.
2Q20251Q20252Q20241Q20252Q2024
Allowance for credit losses on loans, beginning$25,368 $24,796 $22,129 $572 $3,239 
Provision for credit losses on loans
1,255 687 627 568 628 
Gross charge-offs(542)(130)— (412)(542)
Gross recoveries205 15 4 190 201 
Net (charge-offs) recoveries(337)(115)4 (222)(341)
Allowance for credit losses on loans, ending
$26,286 $25,368 $22,760 $918 $3,526 
Allowance for credit losses on off-balance sheet exposure, beginning$409 $360 $468 $49 $(59)
Provision for (reversal of) credit losses on off-balance sheet exposure
(49)49 (10)(98)(39)
Allowance for credit losses on off-balance sheet exposure, ending
$360 $409 $458 $(49)$(98)

Asset Quality
($ in thousands)As of and For the Three Months Ended% or Basis Point Change 2Q2025 vs.
2Q20251Q20252Q20241Q20252Q2024
Accruing loans 30-89 days past due$9,804 $6,452 $6,652 52 %47 %
As a % of gross loans0.47 %0.32 %0.36 %15 bps11 bps
Nonperforming loans (1)
$8,916 $10,412 $4,389 (14)%103 %
Nonperforming assets (1)
10,153 11,649 5,626 (13)80 
Nonperforming loans to gross loans0.43 %0.51 %0.23 %(8) bps20 bps
Nonperforming assets to total assets0.40 0.46 0.25 (6) bps15 bps
Criticized loans (2)(3)
$23,758 $23,055 $16,428 3.0 %44.6 %
Criticized loans to gross loans1.15 %1.13 %0.88 %2 bps27 bps
Allowance for credit losses ratios:
As a % of gross loans1.27 %1.24 %1.22 %3 bps5 bps
As a % of nonperforming loans295 244 519 51 %(224)%
As a % of nonperforming assets259 218 405 41 (146)
As a % of criticized loans111 110 139 1 (28)
Net (charge-offs) recoveries (4) to average gross loans
(0.06)(0.02)0.00 (4) bps(6) bps
(1)Excludes the guaranteed portion of loans that were in liquidation totaling $13.9 million, $14.3 million and $3.5 million as of June 30, 2025, March 31, 2025 and June 30, 2024, respectively.
(2)Excludes the guaranteed portion of loans that were in liquidation totaling $17.1 million, $17.2 million and $3.5 million as of June 30, 2025, March 31, 2025 and June 30, 2024, respectively.
(3)Consists of special mention, substandard, doubtful and loss categories.
(4)Annualized.

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Credit quality remained strong, with nonperforming loans declining to 0.43% of gross loans and annualized net charge-offs at a low 0.06%. The allowance remained adequate at 1.27% of gross loans.
◦Accruing loans 30-89 days past due increased to $9.8 million or 0.47% of gross loans, compared with $6.5 million or 0.32% in the prior quarter.
◦Nonperforming loans decreased $1.5 million, primarily attributable to increased payoffs across various loan categories, partially offset by the addition of a new nonaccrual home mortgage loan.
◦Criticized loans increased $703 thousand, primarily attributable to the downgrade of SBA and home mortgage loans, partially offset by the payoffs of certain home mortgage loans and partial charge-offs.

Deposits
($ in thousands)As of% Change 2Q2025 vs.
2Q20251Q20252Q2024
Amount%Amount%Amount%1Q20252Q2024
Noninterest-bearing deposits$565,683 25.1 %$552,797 25.2 %$518,456 26.7 %2 %9 %
Money market deposits and others431,252 19.1 385,080 17.6 332,137 17.1 12 30 
Time deposits1,257,793 55.8 1,251,994 57.2 1,090,228 56.2 0 15 
Total deposits$2,254,728 100.0 %$2,189,871 100.0 %$1,940,821 100.0 %3 %16 %
Estimated uninsured deposits$1,156,311 51 %$1,072,753 49 %$860,419 44 %8 %34 %
As of June 30, 2025 vs. March 31, 2025
Total deposits increased $64.9 million or 3%, primarily driven by a $46.2 million increase in money market deposits and others, along with a $12.9 million increase in noninterest-bearing deposits. This growth reflects our continued strategic focus on expanding lower-cost deposit products, resulting in growth in both noninterest-bearing and money market deposit balances.
As of June 30, 2025 vs. June 30, 2024
Total deposits increased $313.9 million or 16%, primarily driven by growth of $167.6 million in time deposits, $99.1 million in money market deposits and others, and $47.2 million in noninterest-bearing deposits. This strong deposit growth reflects the continued strategic focus on developing and deepening deposit relationships with both new and existing customers.

The following table sets forth the maturity of time deposits as of June 30, 2025:
As of June 30, 2025
($ in thousands)Within Three
Months		Three to
Six Months		Six to Nine MonthsNine to Twelve
Months		After
Twelve Months		Total
Time deposits (greater than $250)$235,531 $146,560 $154,074 $107,185 $— $643,350 
Time deposits ($250 or less)257,458 150,671 121,833 82,293 2,188 614,443 
Total time deposits$492,989 $297,231 $275,907 $189,478 $2,188 $1,257,793 
Weighted average rate4.48 %4.27 %4.25 %4.27 %3.22 %4.34 %

11

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)2Q20251Q20252Q2024
Liquidity Assets:
Cash and cash equivalents$205,388 $198,861 $127,676 
Available-for-sale debt securities175,000 182,480 199,205 
Liquid assets$380,388 $381,341 $326,881 
Liquid assets to total assets15 %15 %14 %
Available Borrowings:
Federal Home Loan Bank ("FHLB") —San Francisco$443,207 $381,456 $343,600 
Federal Reserve Bank223,373 217,563 191,421 
Pacific Coast Bankers Bank50,000 50,000 50,000 
Zions Bank25,000 25,000 25,000 
First Horizon Bank25,000 25,000 25,000 
Total available borrowings$766,580 $699,019 $635,021 
Total available borrowings to total assets30 %28 %28 %
Liquid assets and available borrowings to total deposits51 %49 %50 %

Capital and Capital Ratios

On July 24, 2025, the Company’s Board of Directors declared a quarterly cash dividend of $0.12 per share of its common stock. The dividend is payable on or about August 21, 2025, to shareholders of record as of the close of business on August 7, 2025. The principal source of funds from which the Company pays dividends are the dividends received from the Bank. Future dividends are subject to Board of Directors’ approval and will depend on the Company’s earnings, financial condition, capital requirements, and other relevant factors. During the second quarter of 2025, the Company repurchased 65,387 shares of its common stock at an average price of $10.77 per share under the Company’s previously announced share repurchase program.
OP Bancorp(1)
Open BankWell-
Capitalized
Requirement
Minimum
Capital Ratio+
Conservation
Buffer(2)
Risk-Based Capital Ratios (3):
Total capital12.26 %12.15 %10.00 %10.50 %
Tier 1 capital11.01 10.90 8.00 8.50 
CET1 capital11.01 10.90 6.50 7.00 
Tier 1 leverage8.96 8.87 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. This buffer does not apply and is not included in the tier 1 leverage ratio.
(3)The Company’s June 30, 2025 regulatory capital ratios and risk-weighted assets are preliminary.

12

OP Bancorp% or Basis Point Change 2Q2025 vs.
2Q20251Q20252Q20241Q20252Q2024
Risk-Based Capital Ratios:
Total capital12.26 %
(1)
12.22 %13.26 %4 bps(100) bps
Tier 1 capital11.01 
(1)
10.97 12.01 4 bps(100) bps
CET1 capital11.01 
(1)
10.97 12.01 4 bps(100) bps
Tier 1 leverage8.96 
(1)
9.22 9.28 (26) bps(32) bps
Risk-weighted Assets ($ in thousands)$2,062,986 
(1)
$2,034,969 $1,776,821 1 %16 %
(1)The Company’s June 30, 2025 regulatory capital ratios and risk-weighted assets are preliminary.

13

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 twelve full-service branch offices in Downtown Los Angeles, Los Angeles Fashion District, Los Angeles Koreatown, Cerritos, Gardena, Buena Park, Garden Grove 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, and Rule 3b-6 promulgated thereunder. All statements that are not statements of historical fact are forward-looking, and readers should not construe these statements of assurances of expected or intended results, or of promises that management will take a given course of action or pursue the currently expected strategies and objectives. Forward-looking statements in this report include comments about the Company’s current business plans and expectations regarding future operating results, as well as management’s statements about expected future events and economic developments, plans, strategies and objectives. All such statements reflect the current intentions, beliefs and expectations of the Company’s executive management based on currently available information and current and expected market conditions. Forward-looking statements can sometimes be identified by the use of forward-looking language, such as “likely result in,” “expects,” “anticipates,” “estimates,” “forecasts,” “projects,” “intends to,” or may include other similar words or phrases, such as “believes,” “plans,” “trend,” “objective,” “continues,” “remains,” or similar expressions, or future or conditional verbs, such as “will,” “would,” “should,” “could,” “may,” “might,” “can,” or similar verbs. Readers should not construe these statements as assurances of a given level of performance, or as promises that we will take the actions our management currently expects.

Our forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from those projected or could cause us to change plans or strategies or otherwise to take actions that differ from those we currently expect. The known risks and uncertainties that may have these effects are described in Part II, Item 1A, of our Quarterly Report on Form 10-Q for the period ended March 31, 2025, and in our other filings with the Securities and Exchange Commission. You should read all forward-looking statements in the context of the foregoing and should not consider them to be reliable predictions of future events or as assurances of a particular level of performance or intended course of action. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.
Contact

Investor Relations
OP Bancorp
Jaehyun Park
EVP & CFO
213.593.4865
jaehyun.park@myopenbank.com
14

CONSOLIDATED BALANCE SHEETS (unaudited)
($ in thousands)As of% Change 2Q2025 vs.
2Q20251Q20252Q20241Q20252Q2024
Assets  
Cash and due from banks$16,592 $12,575 $21,771 32 %(24)%
Interest-bearing deposits with banks188,796 186,286 105,905 1 78 
Cash and cash equivalents205,388 198,861 127,676 3 61 
Available-for-sale debt securities, at fair value175,000 182,480 199,205 (4)(12)
Other investments17,101 16,517 16,367 4 4 
Loans held-for-sale20,016 4,555 6,485 339 209 
CRE loans1,021,431 1,023,278 931,284 0 10 
SBA loans263,424 258,778 242,395 2 9 
C&I loans193,359 202,250 188,557 (4)3 
Home mortgage loans 593,256 559,543 506,873 6 17 
Consumer loans110 36 997 206(89)
Gross loans2,071,580 2,043,885 1,870,106 1 11 
Allowance for credit losses on loans(26,286)(25,368)(22,760)4 15 
Net loans2,045,294 2,018,517 1,847,346 1 11 
Premises and equipment, net6,852 6,526 4,716 5 45 
Accrued interest receivable9,991 9,871 8,555 1 17 
Servicing assets10,572 10,848 11,043 (3)(4)
Company owned life insurance23,259 23,084 22,566 1 3 
Deferred tax assets, net12,633 13,183 14,117 (4)(11)
Other real estate owned ("OREO")1,237 1,237 1,237 — —
Operating right-of-use assets9,887 6,930 8,348 43 18 
Other assets26,365 20,362 23,019 29 15 
Total assets$2,563,595 $2,512,971 $2,290,680 2 %12 %
Liabilities and Shareholders' Equity
Liabilities:
Noninterest-bearing$565,683 $552,797 $518,456 2 %9 %
Money market and others431,252 385,080 332,137 12 30 
Time deposits greater than $250643,350 610,783 533,857 5 21 
Other time deposits614,443 641,211 556,371 (4)10 
Total deposits2,254,728 2,189,871 1,940,821 3 16 
FHLB advances50,000 75,000 115,000 (33)(57)
Accrued interest payable15,720 14,994 15,504 5 1 
Operating lease liabilities12,243 9,193 9,000 33 36 
Other liabilities17,186 13,824 14,369 24 20 
Total liabilities2,349,877 2,302,882 2,094,694 2 12 
Shareholders' equity:
Common stock72,984 73,697 73,749 (1)(1)
Additional paid-in capital11,484 11,371 11,441 1 0 
Retained earnings143,114 138,563 127,929 3 12 
Accumulated other comprehensive loss, net of tax(13,864)(13,542)(17,133)2 (19)
Total shareholders’ equity213,718 210,089 195,986 2 9 
Total liabilities and shareholders' equity$2,563,595 $2,512,971 $2,290,680 2 %12 %

15

CONSOLIDATED STATEMENTS OF INCOME (unaudited)
($ in thousands, except share and per share data)For the Three Months Ended% Change 2Q2025 vs.
2Q20251Q20252Q20241Q20252Q2024
Interest income
Interest and fees on loans$34,263 $31,689 $30,605 8 %12 %
Interest on available-for-sale debt securities1,437 1,496 1,590 (4)(10)
Other interest income1,965 1,674 2,162 17 (9)
Total interest income37,665 34,859 34,357 8 10 
Interest expense
Interest on deposits17,475 16,608 17,343 5 1 
Interest on borrowings469 833 820 (44)(43)
Total interest expense17,944 17,441 18,163 3 (1)
Net interest income19,721 17,418 16,194 13 22 
Provision for credit losses1,206 736 617 64 95 
Net interest income after provision for credit losses18,515 16,682 15,577 11 19 
Noninterest income
Service charges on deposits1,017 1,000 793 2 28 
Loan servicing fees, net of amortization900 1,007 575 (11)57 
Gains on sale of loans1,441 2,019 2,325 (29)(38)
Other income610 790 491 (23)24 
Total noninterest income3,968 4,816 4,184 (18)(5)
Noninterest expense
Salaries and employee benefits9,075 8,776 7,568 3 20 
Occupancy and equipment1,584 1,581 1,660 0 (5)
Data processing and communication306 296 530 3 (42)
Professional fees418 407 406 3 3 
FDIC insurance and regulatory assessments506 487 378 4 34 
Promotion and advertising232 156 151 49 54 
Directors’ fees198 180 178 10 11 
Foundation donation and other contributions636 556 539 14 18 
Other expenses1,082 1,375 779 (21)39 
Total noninterest expense14,037 13,814 12,189 2 15 
Income before income tax expense8,446 7,684 7,572 10 12 
Income tax expense2,113 2,124 2,136 (1)(1)
Net income$6,333 $5,560 $5,436 14 %17 %
Book value per share, at period-end$14.36 $14.09 $13.23 2 %9 %
EPS - basic0.42 0.37 0.36 14 17 
EPS - diluted0.42 0.37 0.36 14 17 
Shares of common stock outstanding, at period-end14,885,61414,914,26114,816,281(0 ) %0 %
Weighted average shares:
- Basic14,859,71814,857,23414,868,3440 %0 %
- Diluted14,859,71814,857,23414,868,3440 0 






16

KEY RATIOS
As of and For the Three Months Ended
Basis Point Change 2Q2025 vs.
2Q20251Q20252Q20241Q20252Q2024
ROA (1)
1.00 %0.92 %0.95 %8 bps5 bps
ROE (1)
11.97 10.73 11.23 124 bps74 bps
Net interest margin (1)
3.23 3.01 2.96 22 bps27 bps
Efficiency ratio (2)
59.25 62.13 59.81 (288) bps(56) bps
Total risk-based capital ratio12.26 %
(3)
12.22 %13.26 %4 bps(100) bps
Tier 1 risk-based capital ratio11.01 
(3)
10.97 12.01 4 bps(100) bps
CET1 capital ratio11.01 
(3)
10.97 12.01 4 bps(100) bps
Tier 1 leverage capital ratio8.96 
(3)
9.22 9.28 (26) bps(32) bps
(1)Annualized.
(2)Represents noninterest expense divided by the sum of net interest income and noninterest income.
(3)The Company’s June 30, 2025 regulatory capital ratios and risk-weighted assets are preliminary.
17

CONSOLIDATED STATEMENTS OF INCOME (unaudited)
($ in thousands, except share and per share data)For the Six Months Ended
2Q20252Q2024% Change
Interest income
Interest and fees on loans$65,952 $60,747 9 %
Interest on available-for-sale debt securities2,933 3,050 (4)
Other interest income3,639 3,473 5 
Total interest income72,524 67,270 8 
Interest expense
Interest on deposits34,083 33,018 3 
Interest on borrowings1,302 2,079 (37)
Total interest expense35,385 35,097 1 
Net interest income37,139 32,173 15 
Provision for credit losses1,942 762 155 
Net interest income after provision for credit losses35,197 31,411 12 
Noninterest income
Service charges on deposits2,017 1,405 44 %
Loan servicing fees, net of amortization1,907 1,347 42 
Gains on sale of loans3,460 4,028 (14)
Other income1,400 990 41 
Total noninterest income8,784 7,770 13 
Noninterest expense
Salaries and employee benefits17,851 15,409 16 
Occupancy and equipment3,165 3,315 (5)
Data processing and communication602 1,017 (41)
Professional fees825 801 3 
FDIC insurance and regulatory assessments993 752 32 
Promotion and advertising388 300 29 
Directors’ fees378 335 13 
Foundation donation and other contributions1,192 1,079 10 
Other expenses2,457 1,338 84 
Total noninterest expense27,851 24,346 14 
Income before income tax expense16,130 14,835 9 
Income tax expense4,237 4,173 2 
Net income$11,893 $10,662 12 %
Book value per share, at period-end$14.36 $13.23 9 %
EPS - basic0.79 0.70 13 
EPS - diluted0.79 0.70 13 
Shares of common stock outstanding, at period-end14,885,61414,816,2810 %
Weighted average shares:
- Basic14,858,48314,930,0900 %
- Diluted14,858,48314,930,0900 %





18

KEY RATIOS
As of and For the Six Months Ended
Basis Point Change 2Q2025 vs.
2Q20252Q2024
ROA (1)
0.96 %0.96 %0 bps
ROE (1)
11.36 11.03 33 bps
Net interest margin3.12 3.01 11 bps
Efficiency ratio (2)
60.65 60.95 (30) bps
Total risk-based capital ratio12.26 %
(3)
13.26 %(100) bps
Tier 1 risk-based capital ratio11.01 
(3)
12.01 (100) bps
CET1 capital ratio11.01 
(3)
12.01 (100) bps
Tier 1 leverage capital ratio8.96 
(3)
9.28 (32) bps
(1)Annualized.
(2)Represents noninterest expense divided by the sum of net interest income and noninterest income.
(3)The Company’s June 30, 2025 regulatory capital ratios and risk-weighted assets are preliminary.
19

ASSET QUALITY
($ in thousands)As of and For the Three Months Ended
2Q20251Q20252Q2024
Nonaccrual loans (1)(2)
$8,916 $10,412 $4,389 
Loans 90 days or more past due, accruing— — — 
Nonperforming loans8,916 10,412 4,389 
OREO1,237 1,237 1,237 
Nonperforming assets$10,153 $11,649 $5,626 
Criticized loans (3) by risk categories:
Special mention loans$9,257 $7,190 $3,339 
Classified loans (4)
14,501 15,865 13,089 
Total criticized loans$23,758 $23,055 $16,428 
Nonperforming loans to gross loans0.43 %0.51 %0.23 %
Nonperforming assets to gross loans & OREO0.49 0.57 0.30 
Nonperforming assets to total assets0.40 0.46 0.25 
Classified loans to gross loans0.70 0.78 0.70 
Criticized loans to gross loans1.15 1.13 0.88 
Allowance for credit losses ratios:
As a % of gross loans1.27 %1.24 %1.22 %
As a % of nonperforming loans295 244 519 
As a % of nonperforming assets259 218 405 
As a % of classified loans181 160 174 
As a % of criticized loans111 110 139 
Net (charge-offs) recoveries$(337)$(115)$4 
Net (charge-offs) recoveries (5) to average gross loans
(0.06)%(0.02)%0.00 %
(1)Excludes loans held-for-sale.
(2)Excludes the guaranteed portion of loans that are in liquidation totaling $13.9 million, $14.3 million and $3.5 million as of June 30, 2025, March 31, 2025 and June 30, 2024, respectively.
(3)Excludes the guaranteed portion of loans that are in liquidation totaling $17.1 million, $17.2 million and $3.5 million as of June 30, 2025, March 31, 2025 and June 30, 2024, respectively.
(4)Consists of substandard, doubtful and loss categories.
(5)Annualized.


20

($ in thousands)2Q20251Q20252Q2024
Accruing delinquent loans 30-89 days past due by loan type:
CRE loans$— $— $— 
SBA loans4,509 2,483 1,303 
C&I loans— — — 
Home mortgage loans298 3,969 2,471 
Total 30-59 days4,807 6,452 3,774 
CRE loans— — — 
SBA loans1,883 — — 
C&I loans— — — 
Home mortgage loans3,114 — 2,878 
Total 60-89 days4,997 — 2,878 
CRE loans— — — 
SBA loans6,392 2,483 1,303 
C&I loans— — — 
Home mortgage loans3,412 3,969 5,349 
Total accruing delinquent loans 30-89 days past due$9,804 $6,452 $6,652 
Nonaccrual loans (1) by loan type:
CRE loans$1,802 $1,937 $— 
SBA loans5,696 6,371 3,757 
C&I loans— — 421 
Home mortgage loans1,418 2,104 211 
Total nonaccrual loans$8,916 $10,412 $4,389 
Criticized loans(2) by loan type:
CRE loans$8,816 $8,988 $5,896 
SBA loans12,949 11,574 9,771 
C&I loans575 389 550 
Home mortgage loans1,418 2,104 211 
Total criticized loans$23,758 $23,055 $16,428 
(1)Excludes the guaranteed portion of loans that were in liquidation totaling $13.9 million, $14.3 million and $3.5 million as of June 30, 2025, March 31, 2025 and June 30, 2024, respectively.
(2)Excludes the guaranteed portion of loans that were in liquidation totaling $17.1 million, $17.2 million and $3.5 million as of June 30, 2025, March 31, 2025 and June 30, 2024, respectively.
21

AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS
For the Three Months Ended
2Q20251Q20252Q2024
($ in thousands)Average
Balance		Interest Income/Expense
Average Yield/Rate(1)
Average
Balance		Interest Income/Expense
Average Yield/Rate(1)
Average
Balance		Interest Income/Expense
Average Yield/Rate(1)
Interest-earning assets:
Interest-bearing deposits in other banks$147,874 $1,648 4.41 %$124,069 $1,372 4.42 %$135,984 $1,847 5.37 %
Other investments
16,961 317 7.47 16,469 302 7.33 16,307 315 7.72 
Available-for-sale debt securities, at fair value180,193 1,437 3.19 184,649 1,496 3.24 195,512 1,590 3.25 
CRE loans1,028,961 16,013 6.24 1,000,426 14,980 6.07 910,116 13,742 6.07 
SBA loans283,130 6,618 9.38 265,953 6,207 9.47 256,987 7,116 11.14 
C&I loans195,547 3,667 7.52 212,106 3,778 7.22 173,100 3,367 7.82 
Home mortgage loans587,454 7,962 5.42 526,326 6,718 5.11 501,862 6,348 5.06 
Consumer loans76 3 15.86 233 6 9.75 1,219 32 10.44 
Total loans (2)
2,095,168 34,263 6.56 2,005,044 31,689 6.39 1,843,284 30,605 6.67 
Total interest-earning assets2,440,196 37,665 6.18 2,330,231 34,859 6.04 2,191,087 34,357 6.29 
Noninterest-earning assets83,394 77,823 89,446 
Total assets$2,523,590 $2,408,054 $2,280,533 
Interest-bearing liabilities:
Money market deposits and others$408,667 $3,586 3.52 %$353,804 $3,085 3.54 %$338,554 $3,494 4.15 %
Time deposits1,267,363 13,889 4.40 1,208,032 13,523 4.54 1,102,587 13,849 5.05 
Total interest-bearing deposits1,676,030 17,475 4.18 1,561,836 16,608 4.31 1,441,141 17,343 4.84 
Borrowings46,707 469 4.04 78,944 833 4.28 77,314 820 4.27 
Total interest-bearing liabilities1,722,737 17,944 4.18 1,640,780 17,441 4.31 1,518,455 18,163 4.81 
Noninterest-bearing liabilities:
Noninterest-bearing deposits547,545 522,054 529,179 
Other noninterest-bearing liabilities41,624 38,014 39,301 
Total noninterest-bearing liabilities589,169 560,068 568,480 
Shareholders’ equity211,684 207,206 193,598 
Total liabilities and shareholders’ equity$2,523,590 2,408,054 2,280,533 
Net interest income / interest rate spreads$19,721 2.00 %$17,418 1.73 %$16,194 1.48 %
Net interest margin3.23 %3.01 %2.96 %
Cost of deposits & cost of funds:
Total deposits / cost of deposits$2,223,575 $17,475 3.15 %$2,083,890 $16,608 3.23 %$1,970,320 $17,343 3.54 %
Total funding liabilities / cost of funds2,270,282 17,944 3.17 2,162,834 17,441 3.27 2,047,634 18,163 3.57 
(1)Annualized.
(2)Includes loans held-for-sale.


22

For the Six Months Ended
2Q20252Q2024
($ in thousands)Average
Balance
Interest Income/Expense
Average Yield/Rate(1)
Average
Balance
Interest Income/Expense
Average Yield/Rate(1)
Interest-earning assets:
Interest-bearing deposits in other banks$136,038 $3,020 4.41 %$104,515 $2,836 5.37 %
Other investments
16,716 619 7.40 16,286 637 7.82 
Available-for-sale debt securities, at fair value182,409 2,933 3.22 193,448 3,050 3.15 
CRE loans1,014,772 30,993 6.16 906,290 27,471 6.10 
SBA loans274,589 12,825 9.42 257,554 14,329 11.19 
C&I loans203,781 7,445 7.37 154,018 6,037 7.88 
Home mortgage loans557,058 14,681 5.27 506,943 12,843 5.07 
Consumer & other loans154 8 11.27 1,303 67 10.26 
Total loans (2)
2,050,354 65,952 6.47 1,826,108 60,747 6.68 
Total interest-earning assets2,385,517 72,524 6.11 2,140,357 67,270 6.31 
Noninterest-earning assets80,624 88,516 
Total assets$2,466,141 $2,228,873 
Interest-bearing liabilities:
Money market deposits and others$381,387 $6,671 3.53 %$352,970 $7,434 4.24 %
Time deposits1,237,862 27,412 4.47 1,028,515 25,584 5.00 
Total interest-bearing deposits1,619,249 34,083 4.24 1,381,485 33,018 4.81 
Borrowings62,736 1,302 4.19 92,998 2,079 4.50 
Total interest-bearing liabilities1,681,985 35,385 4.24 1,474,483 35,097 4.79 
Noninterest-bearing liabilities:
Noninterest-bearing deposits534,870 521,841 
Other noninterest-bearing liabilities39,829 39,253 
Total noninterest-bearing liabilities574,699 561,094 
Shareholders’ equity209,457 193,296 
Total liabilities and shareholders’ equity$2,466,141 2,228,873 
Net interest income / interest rate spreads$37,139 1.87 %$32,173 1.52 %
Net interest margin3.12 %3.01 %
Cost of deposits & cost of funds:
Total deposits / cost of deposits$2,154,119 $34,083 3.19 %1,903,326 $33,018 3.49 %
Total funding liabilities / cost of funds2,216,855 35,385 3.22 1,996,324 35,097 3.54 
(1)Annualized.
(2)Includes loans held-for-sale.
23