EX-99.1 2 opbk8-kerx2025xq4xex991.htm EX-99.1 Document

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News Release
OP Bancorp Reports Fourth Quarter 2025 Net Income of $7.1 Million, Diluted EPS of $0.47
compared with third quarter 2025 net income of $6.7 million, diluted EPS of $0.45,
and fourth quarter 2024 net income of $5.0 million, diluted EPS of $0.33
Higher net interest income; lower provision for credit losses

Los Angeles, CA (January 22, 2026) — OP Bancorp (the “Company”) (NASDAQ: OPBK), parent company of Open Bank, today reported:
($ in thousands, except per share data)As of and For the QuarterFourth Quarter Highlights
4Q20253Q20254Q2024Comparisons reflect 4Q25 vs. 3Q25
Income Statement:Income Statement
Net interest income$20,863 $20,346 $16,929 
•Net interest income increased 3%.
•Revenue remained relatively stable, and net interest margin was nearly unchanged.
•Provision for credit losses decreased 61%.
•Net income increased 5%.
•Diluted EPS increased $0.02 to $0.47.
Noninterest income3,418 4,130 4,417 
Revenue24,281 24,476 21,346 
Provision for credit losses463 1,175 1,547 
Noninterest expense14,293 13,629 13,133 
Net income$7,059 $6,703 $4,971 
Diluted Earnings Per Share (“EPS”)$0.47 $0.45 $0.33 
Net interest margin (1)
3.25 %3.26 %2.96 %
Efficiency ratio (2)
58.87 55.68 61.52 
Balance Sheet:Balance Sheet
Average loans (3)
$2,204,232 $2,132,230 $1,947,653 
•Average loans increased 3%.
•Average deposits increased 2%.
Average deposits2,264,9902,229,5912,029,855
Credit Quality:Credit Quality
Net recoveries (charge-offs) (1) to average gross loans
0.03 %(0.04)%(0.00)%
•Net loan recoveries (charge-offs) ratio remained at a low level.
•Allowance for credit losses to gross loans remained stable.
Allowance for credit losses on loans to gross loans1.28 1.27 1.27 
Selected Ratios:Performance and Capital
Return on average assets ("ROA") (1)
1.07 %1.04 %0.84 %
•ROA and ROE improved, reflecting stronger profitability and more efficient utilization of assets and equity.
Return on average equity ("ROE") (1)
12.57 12.36 9.75 
Common equity tier 1 capital (“CET1”)10.93 10.92 11.35 
•CET1 remained robust, reflecting a solid capital position.
(1)Annualized.
(2)Represents noninterest expense divided by the sum of net interest income and noninterest income.
(3)Includes loans held-for-sale.
1


Sang K. Oh, President and Chief Executive Officer:
“Our fourth-quarter results highlight the continued strength and resilience of our Company. Net interest income increased 3%, and a more favorable economic outlook resulted in a 61% reduction in provision for credit losses while maintaining an adequate reserve level against credit risk. As a result, net income rose 5%, and diluted EPS also increased $0.02 to $0.47. On the balance sheet, average loans grew 3% and average deposits increased 2%, demonstrating the ongoing trust of our customers and the effectiveness of our relationship-driven approach. Asset quality remained stable, and our capital position stayed robust, underscoring the soundness of our risk management framework. As we close out 2025, we remain focused on executing our strategic priorities, supporting our customers and communities, and delivering long-term value for our shareholders,” said Sang K. Oh, President and Chief Executive Officer.
2

INCOME STATEMENT HIGHLIGHTS
Net Interest Income and Net Interest Margin
($ in thousands)For the Three Months Ended% Change 4Q2025 vs.
4Q20253Q20254Q20243Q20254Q2024
Interest Income
Interest income$39,282 $38,522 $35,051 2 %12 %
Interest expense18,419 18,176 18,122 1 2 
Net interest income$20,863 $20,346 $16,929 3 %23 %

($ in thousands)For the Three Months EndedAverage Yield/Rate Change 4Q2025 vs.
4Q20253Q20254Q2024
Interest Income/Expense
Average Yield/Rate(1)
Interest Income/Expense
Average Yield/Rate(1)
Interest Income/Expense
Average Yield/Rate(1)
3Q20254Q2024
Interest-earning Assets:
Loans$35,921 6.48 %$35,001 6.52 %$31,729 6.49 %(4) bps(1) bps
Total interest-earning assets39,282 6.11 38,522 6.16 35,051 6.12 (5) bps(1) bps
Interest-bearing Liabilities:
Interest-bearing deposits17,324 3.97 17,442 4.07 17,182 4.60 (10) bps(63) bps
Total interest-bearing liabilities18,419 3.99 18,176 4.06 18,122 4.58 (7) bps(59) bps
Ratios:
Net interest income / interest rate spreads20,863 2.12 20,346 2.10 16,929 1.54 2 bps58 bps
Net interest margin3.25 3.26 2.96 (1) bps29 bps
Total deposits / cost of deposits17,324 3.03 17,442 3.10 17,182 3.37 (7) bps(34) bps
Total funding liabilities / cost of funds18,419 3.09 18,176 3.13 18,122 3.41 (4) bps(32) bps
(1)Annualized.
3

($ in thousands)For the Three Months EndedAverage Yield Change 4Q2025 vs.
4Q20253Q20254Q2024
Interest Income
Average Yield(1)
Interest Income
Average Yield(1)
Interest Income
Average Yield(1)
3Q20254Q2024
Loan Yield Component:
Contractual interest rate$35,010 6.31 %$34,263 6.39 %$31,406 6.42 %(8) bps(11) bps
Accretion of SBA loan discount(2)
966 0.17 972 0.18 813 0.17 (1) bps0 bps
Amortization of net deferred fees(17)(0.00)70 0.01 (47)(0.01)(1) bps1 bps
Amortization of premium(301)(0.05)(244)(0.05)(363)(0.07)— bps2 bps
Amortization of premium - Home mortgage payoffs(123)(0.02)(112)(0.02)— — — bps(2) bps
Net interest recognized on nonaccrual loans105 0.02 (175)(0.03)(232)(0.05)5 bps7 bps
Prepayment penalty income and other fees(3)
281 0.05 227 0.04 152 0.03 1 bps2 bps
Yield on loans$35,921 6.48 %$35,001 6.52 %$31,729 6.49 %(4) bps(1) bps
(1)Annualized.
(2)Includes discount accretion from SBA loan payoffs of $505 thousand, $499 thousand and $329 thousand for the three months ended December 31, 2025, September 30, 2025 and December 31, 2024, respectively.
(3)Includes prepayment penalty income of $145 thousand, $127 thousand and $45 thousand for the three months ended December 31, 2025, September 30, 2025 and December 31, 2024, respectively, from Commercial Real Estate (“CRE”) and SBA loans.

Fourth Quarter 2025 vs. Third Quarter 2025
Net interest income increased by $517 thousand, or 3%, primarily driven by loan growth. This increase was partially offset by higher expense associated with the issuance of a new subordinated note and lower yields on the Federal Reserve account. Net interest margin contracted by 1 basis point to 3.25%.

◦Loans: Interest income increased by $920 thousand, largely attributable to a $72.0 million increase in average loan balances.
◦Cash and Cash Equivalents: Interest income decreased by $142 thousand, mainly due to a 46 basis point reduction in yields, reflecting the lower rates on the Federal Reserve account following recent rate cuts.
◦Deposits: Interest expense decreased slightly by $118 thousand, primarily due to a 10 basis point reduction in interest-bearing deposit costs, reflecting the repricing of deposit products following the decline in the federal funds rate. This benefit was mostly offset by a $31.6 million increase in average interest-bearing deposit balances.
◦Subordinated Note: Interest expense was $278 thousand, attributable to the issuance of $25 million in subordinated debt in November 2025.
4

Fourth Quarter 2025 vs. Fourth Quarter 2024
Net interest income increased by $3.9 million, or 23%. The increase was largely due to loan growth and lower deposit rates. These changes were partially offset by interest-bearing deposit growth. Net interest margin rose 29 basis points to 3.25%.
◦Loans: Interest income increased by $4.2 million, largely driven by a $256.6 million increase in average loan balances.
◦Deposits: Interest expense increased by $142 thousand, mainly driven by a $246.0 million increase in average interest-bearing deposit balances. This increase was mostly offset by a 63 basis point reduction in interest-bearing deposit costs, resulting from the repricing of time deposits in response to the federal funds rate cuts.

Provision for Credit Losses
($ in thousands)For the Three Months Ended $ Change 4Q2025 vs.
4Q20253Q20254Q20243Q20254Q2024
Provision for credit losses on loans$518 $1,206 $1,859 $(688)$(1,341)
Reversal of credit losses on off-balance sheet exposure(55)(31)(312)(24)257 
Provision for credit losses$463 $1,175 $1,547 $(712)$(1,084)

Fourth Quarter 2025 vs. Third Quarter 2025
Provision for credit losses on loans decreased by $688 thousand, primarily driven by an improved qualitative outlook and lower net charge-offs, partially offset by higher quantitative reserves associated with risk-rating downgrades.
Fourth Quarter 2025 vs. Fourth Quarter 2024
Provision for credit losses on loans decreased by $1.3 million, primarily due to an improved qualitative outlook and lower specific reserves, partially offset by higher quantitative reserves resulting from risk-rating downgrades.

5

Noninterest Income
($ in thousands)For the Three Months Ended% Change 4Q2025 vs.
4Q20253Q20254Q20243Q20254Q2024
Noninterest Income
Service charges on deposits$462 $725 $967 (36)%(52)%
Loan servicing fees, net of amortization650 724 858 (10)(24)
Gains on sale of loans1,573 2,037 2,197 (23)(28)
Other income733 644 395 14 86 
Total noninterest income$3,418 $4,130 $4,417 (17)%(23)%

Fourth Quarter 2025 vs. Third Quarter 2025
Noninterest income decreased by $712 thousand, or 17%, primarily due to lower gains on sale of loans and service charges on deposits.

◦Gains on Sale of Loans: Decreased by $464 thousand, primarily driven by lower SBA loan sale activity. During the quarter, the Bank sold $28.5 million in SBA loans at an average premium rate of 6.98%, compared to $36.8 million sold at an average premium rate of 6.71% in the prior period.
◦Service Charges on Deposits: Decreased by $263 thousand, primarily due to the closure of certain currency exchange-related accounts in the third quarter of 2025 and reduced balances in existing business analysis accounts.

Fourth Quarter 2025 vs. Fourth Quarter 2024
Noninterest income decreased by $999 thousand, or 23%, primarily due to lower gains on sale of loans and service charges on deposits.
◦Gains on Sale of Loans: Decreased by $624 thousand, primarily driven by lower SBA loan sale activity. During the quarter, the Bank sold $28.5 million in SBA loans at an average premium rate of 6.98%, compared to $34.7 million sold at an average premium rate of 7.82% in the prior period
◦Service Charges on Deposits: Decreased by $505 thousand, largely driven by lower balances in existing business analysis account and closure of certain currency exchange-related accounts in the third quarter of 2025.
6


Noninterest Expense
($ in thousands)For the Three Months Ended% Change 4Q2025 vs.
4Q20253Q20254Q20243Q20254Q2024
Noninterest Expense
Salaries and employee benefits$9,244 $8,892 $8,277 4 %12 %
Occupancy and equipment1,919 1,676 1,682 14 14 
Data processing and communication591 263 594 125 (1)
Professional fees549 419 388 31 41 
FDIC insurance and regulatory assessments362 428 529 (15)(32)
Promotion and advertising(9)126 82 NMNM
Directors’ fees148 151 151 (2)(2)
Foundation donation and other contributions707 671 480 5 47 
Other expenses782 1,003 950 (22)(18)
Total noninterest expense$14,293 $13,629 $13,133 5 %9 %
NM — Not meaningful

Fourth Quarter 2025 vs. Third Quarter 2025
Noninterest expense increased by $664 thousand, or 5%, primarily driven by higher salaries and employee benefits, data processing and communication, and occupancy and equipment. These increases were partially offset by lower other expenses, and promotion and advertising.
◦Salaries and Employee Benefits: Increased by $352 thousand, primarily due to higher incentive accruals driven by stronger SBA loan production.
◦Data Processing and Communication: Increased by $328 thousand, primarily due to adjustments associated with conversion credits from a new core system vendor.
◦Occupancy and equipment: Increased by $243 thousand, primarily due to the end of a common area maintenance concession on a lease that benefited the prior period.
◦Other Expenses: Decreased by $221 thousand, primarily due to lower business development expenses.

Fourth Quarter 2025 vs. Fourth Quarter 2024
Noninterest expense increased by $1.2 million, or 9%, primarily due to higher salaries and employee benefits.

◦Salaries and Employee Benefits: Increased by $967 thousand, mainly driven by staffing growth and annual salary adjustments effective April 2025. Higher incentive accruals further contributed to the increase.






7

Income Tax Expense

Fourth Quarter 2025 vs. Third Quarter 2025
Income tax expense decreased by $503 thousand to $2.5 million, with the effective tax rate declining to 25.9% from 30.7%. The decreases were primarily driven by a one-time revaluation of deferred tax assets in the prior period, resulting from the adoption of the California’s single sales factor apportionment method and the implementation of an enhanced interim state tax apportionment methodology.

Fourth Quarter 2025 vs. Fourth Quarter 2024
Income tax expense increased by $771 thousand to $2.5 million, with the effective tax rate rising to 25.9% from 25.4%. The increase in income tax expense was primarily attributable to higher pre-tax income.

BALANCE SHEET HIGHLIGHTS

Loans
($ in thousands)As of% Change 4Q2025 vs.
4Q20253Q20254Q20243Q20254Q2024
CRE$1,132,223 $1,092,808 $980,247 4 %16 %
SBA264,523 256,211 253,710 3 4 
C&I221,270 214,419 213,097 3 4 
Home mortgage574,300 587,641 509,524 (2)13 
Consumer & other1,353 138 274 880 394 
Gross loans$2,193,669 $2,151,217 $1,956,852 2 %12 %


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 4Q2025 vs.
4Q20253Q20254Q20243Q20254Q2024
AmountRateAmountRateAmountRate
CRE$75,750 6.60 %$98,799 6.36 %$63,717 6.91 %(23)%19 %
SBA
26,748 8.52 15,051 8.72 14,780 9.41 78 81 
C&I6,870 6.57 9,984 6.96 4,606 9.38 (31)49 
Home mortgage7,020 6.45 6,861 6.69 18,092 6.42 2 (61)
Consumer and other — — — — — ——— 
Gross loans (1)
$116,388 7.03 %$130,695 6.69 %$101,195 7.30 %(11)%15 %
(1)Excludes changes in line utilization.

8

The following table summarizes the loan activity for the periods indicated:
($ in thousands)For the Three Months Ended
4Q20253Q20254Q2024
Beginning Balance$2,151,217 $2,071,580 $1,931,007 
Originations116,388 130,695 101,195 
Net change in line utilization34,191 31,167 33,736 
Purchases1,014 8,930 553 
Sales(28,549)(36,806)(34,715)
Payoffs & paydowns(75,506)(67,639)(79,001)
Decrease (increase) in loans held-for-sale(4,963)13,536 3,579 
Other(123)(246)498 
Total42,452 79,637 25,845 
Ending balance$2,193,669 $2,151,217 $1,956,852 

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
4Q20253Q20254Q2024
%Rate%Rate%Rate
Fixed rate31 %5.69 %31 %5.61 %33 %5.44 %
Hybrid rate40 5.93 41 5.89 37 5.66 
Variable rate29 7.64 28 8.02 30 8.47 
Gross loans100 %6.34 %100 %6.40 %100 %6.43 %

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, 2025
Within One YearOne Year Through Five YearsAfter Five YearsTotal
AmountRateAmountRateAmountRateAmountRate
Fixed rate$218,538 5.68 %$272,569 6.24 %$185,633 4.88 %$676,740 5.69 %
Hybrid rate— — 202,200 4.78 687,782 6.27 889,982 5.93 
Variable rate95,323 7.18 162,058 6.98 369,566 8.04 626,947 7.64 
Gross loans$313,861 6.13 %$636,827 5.97 %$1,242,981 6.59 %$2,193,669 6.34 %

9

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 4Q2025 vs.
4Q20253Q20254Q20243Q20254Q2024
Allowance for credit losses on loans, beginning$27,299 $26,286 $22,960 $1,013 $4,339 
Provision for credit losses on loans
518 1,206 1,859 (688)(1,341)
Gross charge-offs— (195)(29)195 29 
Gross recoveries158 2 6 156 152 
Net recoveries (charge-offs)158 (193)(23)351 181 
Allowance for credit losses on loans, ending
$27,975 $27,299 $24,796 $676 $3,179 
Allowance for credit losses on off-balance sheet exposure, beginning$329 $360 $672 $(31)$(343)
Reversal of credit losses on off-balance sheet exposure
(55)(31)(312)(24)257 
Allowance for credit losses on off-balance sheet exposure, ending
$274 $329 $360 $(55)$(86)

Asset Quality
($ in thousands)As of and For the Three Months Ended% or Basis Point Change 4Q2025 vs.
4Q20253Q20254Q20243Q20254Q2024
Accruing loans 30-89 days past due$6,292 $5,386 $8,964 17 %(30)%
As a % of gross loans0.29 %0.25 %0.46 %4 bps(17) bps
Nonperforming loans (1)
$14,071 $12,312 $7,820 14 %80 %
Nonperforming assets (1)
14,071 13,157 9,057 7 55 
Nonperforming loans to gross loans0.64 %0.57 %0.40 %7 bps24 bps
Nonperforming assets to total assets0.53 0.50 0.38 3 bps15 bps
Criticized loans (2)(3)
$32,060 $28,075 $19,570 14.2 %63.8 %
Criticized loans to gross loans1.46 %1.31 %1.00 %15 bps46 bps
Allowance for credit losses ratios:
As a % of gross loans1.28 %1.27 %1.27 %1 bps1 bps
As a % of nonperforming loans199 222 317 (23)%(118)%
As a % of nonperforming assets199 207 274 (8)(75)
As a % of criticized loans87 97 127 (10)(40)
Net recoveries (charge-offs) (4) to average gross loans
0.03 (0.04)(0.00)7 bps3 bps
(1)Excludes the guaranteed portion of loans that were in liquidation totaling $20.9 million, $17.6 million and $16.3 million as of December 31, 2025, September 30, 2025 and December 31, 2024, respectively.
(2)Excludes the guaranteed portion of loans that were in liquidation totaling $27.3 million, $20.8 million and $16.3 million as of December 31, 2025, September 30, 2025 and December 31, 2024, respectively.
(3)Consists of special mention, substandard, doubtful and loss categories.
(4)Annualized.

10

Credit quality remained strong during the period, with nonperforming loans at a low 0.64% of gross loans and annualized net recoveries at just 0.03%. The allowance remained adequate at 1.28% of gross loans.
◦Accruing loans 30-89 days past due increased by $906 thousand, primarily driven by $3.6 million inflows into this category, mainly SBA loans. This increase was partially offset by $1.5 million in payoffs from SBA and C&I loans, as well as $1.0 million transfer to nonaccrual status in SBA and home mortgage loans.
◦Nonperforming loans increased by $1.8 million, reflecting the migration of $3.2 million in loans across multiple loan categories to nonaccrual status, partially offset by the return of a $1.4 million home mortgage loan to accrual status.
◦Criticized loans increased by $4.0 million, primarily attributable to $5.2 million in loan downgrades, partially offset by the same $1.4 million home mortgage loan returning to accrual status as discussed above.

Deposits
($ in thousands)As of% Change 4Q2025 vs.
4Q20253Q20254Q2024
Amount%Amount%Amount%3Q20254Q2024
Noninterest-bearing deposits$520,865 23 %$543,972 24 %$504,928 25 %(4)%3 %
Money market deposits and others388,066 17 402,891 18 329,095 16 (4)18 
Time deposits1,371,616 60 1,326,554 58 1,193,262 59 3 15 
Total deposits$2,280,547 100 %$2,273,417 100 %$2,027,285 100 %0 %12 %
Estimated uninsured deposits$1,093,843 48 %$1,131,091 50 %$961,687 47 %(3)%14 %
As of December 31, 2025 vs. September 30, 2025
Total deposits increased by $7.1 million, primarily driven by a $45.1 million increase in time deposits, partially offset by a $23.1 million decrease in noninterest-bearing deposits, and a $14.8 million decrease in money market deposits and others. The increase in time deposits reflects new retail customers opening CD accounts and a rise in wholesale CD balances to support loan growth. The declines in noninterest-bearing and money market deposits were primarily attributable to reductions in existing customer balances, reflecting customers’ liquidity and investment preferences.
As of December 31, 2025 vs. December 31, 2024
Total deposits increased by $253.3 million or 12%, primarily driven by growth of $178.4 million in time deposits and $59.0 million in money market deposits and others. The increase in time deposits was largely due to new customers opening CD accounts, reflecting a preference for higher-yielding products, along with higher wholesale CD balances. Similarly, the expansion in money market deposits and others was mainly driven by inflows from new customers and increased wholesale money market balances.

11

The following table sets forth the maturity of time deposits as of December 31, 2025:
As of December 31, 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)$319,815 $119,285 $94,984 $148,957 $915 $683,956 
Time deposits ($250 or less)323,978 141,651 121,394 98,862 1,775 687,660 
Total time deposits$643,793 $260,936 $216,378 $247,819 $2,690 $1,371,616 
Weighted average rate4.10 %4.20 %4.18 %4.01 %2.47 %4.11 %

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)4Q20253Q20254Q2024
Liquidity Assets:
Cash and cash equivalents$167,311 $166,748 $134,943 
Available-for-sale ("AFS") debt securities192,785 200,760 185,909 
Liquid assets$360,096 $367,508 $320,852 
Liquid assets to total assets14 %14 %14 %
Available Borrowings:
Federal Home Loan Bank ("FHLB") —San Francisco$443,629 $430,887 $401,900 
Federal Reserve Bank208,859 210,584 215,115 
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$752,488 $741,471 $717,015 
Total available borrowings to total assets28 %28 %30 %
Liquid assets and available borrowings to total deposits49 %49 %51 %

Capital and Capital Ratios

On January 22, 2026, 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 February 19, 2026, to shareholders of record as of the close of business on February 5, 2026. The principal source of funds from which the Company pays dividends are the dividends received from the Bank. During the fourth quarter of 2025, no shares were repurchased under the repurchase program approved in August 2025.
On November 7, 2025, the Company issued a $25 million subordinated note. This qualifies as Tier 2 capital at the consolidated level and Tier 1 capital at the bank level under current regulatory guidelines and interpretations.
12

OP Bancorp(1)
Open BankWell-
Capitalized
Requirement
Minimum
Capital Ratio+
Conservation
Buffer(2)
Risk-Based Capital Ratios (3):
Total capital13.32 %13.30 %10.00 %10.50 %
Tier 1 capital10.93 12.05 8.00 8.50 
CET1 capital10.93 12.05 6.50 7.00 
Tier 1 leverage8.99 9.91 5.00 4.00 
(1)The capital requirements are only applicable to the Bank. The Company's ratios are included solely 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 December 31, 2025 regulatory capital ratios and risk-weighted assets are preliminary.
OP Bancorp% or Basis Point Change 4Q2025 vs.
4Q20253Q20254Q20243Q20254Q2024
Risk-Based Capital Ratios:
Total capital13.32 %
(1)
12.17 %12.60 %115 bps72 bps
Tier 1 capital10.93 
(1)
10.92 11.35 1 bps(42) bps
CET1 capital10.93 
(1)
10.92 11.35 1 bps(42) bps
Tier 1 leverage8.99 
(1)
9.01 9.27 (2) bps(28) bps
Risk-weighted Assets ($ in thousands)$2,174,800 
(1)
$2,127,000 $1,941,622 2 %12 %
(1)The Company’s December 31, 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 operates 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, serving small- and medium-sized businesses, professionals, and local residents with a particular focus on Korean and other Asian 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 September 30, 2025, and in our other filings with the Securities and Exchange Commission. In addition to those risks, we may face risks from increased interest expense and increased leverage in light of our issuance of $25 million in principal amount of subordinated note in November 2025. 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 4Q2025 vs.
4Q20253Q20254Q20243Q20254Q2024
Assets  
Cash and due from banks$10,911 $10,931 $12,268 0 %(11)%
Interest-bearing deposits with banks156,400 155,817 122,675 0 27 
Cash and cash equivalents167,311 166,748 134,943 0 24 
AFS debt securities, at fair value192,785 200,760 185,909 (4)4 
Other investments17,208 17,164 16,437 0 5 
Loans held-for-sale11,443 6,480 4,581 77 150 
CRE1,132,223 1,092,808 980,247 4 16 
SBA264,523 256,211 253,710 3 4 
C&I221,270 214,419 213,097 3 4 
Home mortgage574,300 587,641 509,524 (2)13 
Consumer and other 1,353 138 274 880394 
Gross loans2,193,669 2,151,217 1,956,852 2 12 
Allowance for credit losses on loans(27,975)(27,299)(24,796)2 13 
Net loans2,165,694 2,123,918 1,932,056 2 12 
Premises and equipment, net5,744 6,995 5,449 (18)5 
Accrued interest receivable10,482 10,337 9,188 1 14 
Servicing assets10,057 10,429 10,834 (4)(7)
Company owned life insurance23,616 23,437 22,912 1 3 
Deferred tax assets, net12,438 12,099 14,893 3 (16)
Other real estate owned ("OREO")— 845 1,237 (100)(100)
Operating right-of-use assets8,804 9,347 7,415 (6)19 
Other assets24,644 25,655 20,159 (4)22 
Total assets$2,650,226 $2,614,214 $2,366,013 1 %12 %
Liabilities and Shareholders' Equity
Liabilities:
Noninterest-bearing$520,865 $543,972 $504,928 (4)%3 %
Money market and others388,066 402,891 329,095 (4)18 
Time deposits greater than $250683,956 667,883 565,813 2 21 
Other time deposits687,660 658,671 627,449 4 10 
Total deposits2,280,547 2,273,417 2,027,285 0 12 
FHLB advances75,000 75,000 95,000 — (21)
Subordinated note24,586 — — NMNM
Accrued interest payable14,595 15,968 16,067 (9)(9)
Operating lease liabilities11,175 11,826 7,857 (6)42 
Other liabilities16,430 16,504 14,811 0 11 
Total liabilities2,422,333 2,392,715 2,161,020 1 12 
Shareholders' equity:
Common stock73,018 72,984 73,697 0 (1)
Additional paid-in capital11,849 11,658 11,928 2 (1)
Retained earnings153,303 148,031 134,781 4 14 
Accumulated other comprehensive loss, net of tax(10,277)(11,174)(15,413)(8)(33)
Total shareholders’ equity227,893 221,499 204,993 3 11 
Total liabilities and shareholders' equity$2,650,226 $2,614,214 $2,366,013 1 %12 %
NM — Not meaningful

15

CONSOLIDATED STATEMENTS OF INCOME (unaudited)
($ in thousands, except share and per share data)For the Three Months Ended% or Basis Point Change 4Q2025 vs.
4Q20253Q20254Q20243Q20254Q2024
Interest income
Interest and fees on loans$35,921 $35,001 $31,729 3 %13 %
Interest on AFS debt securities1,680 1,699 1,551 (1)8 
Other interest income1,681 1,822 1,771 (8)(5)
Total interest income39,282 38,522 35,051 2 12 
Interest expense
Interest on deposits17,324 17,442 17,182 (1)1 
Interest on borrowings817 734 940 11 (13)
Interest on subordinated note278 — — NMNM
Total interest expense18,419 18,176 18,122 1 2 
Net interest income20,863 20,346 16,929 3 23 
Provision for credit losses463 1,175 1,547 (61)(70)
Net interest income after provision for credit losses20,400 19,171 15,382 6 33 
Noninterest income
Service charges on deposits462 725 967 (36)(52)
Loan servicing fees, net of amortization650 724 858 (10)(24)
Gains on sale of loans1,573 2,037 2,197 (23)(28)
Other income733 644 395 14 86 
Total noninterest income3,418 4,130 4,417 (17)(23)
Noninterest expense
Salaries and employee benefits9,244 8,892 8,277 4 12 
Occupancy and equipment1,919 1,676 1,682 14 14 
Data processing and communication591 263 594 125 (1)
Professional fees549 419 388 31 41 
FDIC insurance and regulatory assessments362 428 529 (15)(32)
Promotion and advertising(9)126 82 NMNM
Directors’ fees148 151 151 (2)(2)
Foundation donation and other contributions707 671 480 5 47 
Other expenses782 1,003 950 (22)(18)
Total noninterest expense14,293 13,629 13,133 5 9 
Income before income tax expense9,525 9,672 6,666 (2)43 
Income tax expense2,466 2,969 1,695 (17)45 
Net income$7,059 $6,703 $4,971 5 %42 %
Book value per share, at period-end$15.31 $14.88 $13.83 3 %11 %
EPS - basic0.47 0.45 0.33 4 42 
EPS - diluted0.47 0.45 0.33 4 42 
Shares of common stock outstanding, at period-end14,889,54014,885,61414,819,8660 %0 %
Weighted average shares:
- Basic14,886,68114,885,61414,816,4160 %0 %
- Diluted14,915,67714,919,47414,816,4160 1 
ROA (1)
1.07 %1.04 %0.84 %3 bps23 bps
ROE (1)
12.57 12.36 9.75 21 bps282 bps
Efficiency ratio (2)
58.87 55.68 61.52 319 bps(265) bps
NM — Not meaningful
(1)Annualized.
(2)Represents noninterest expense divided by the sum of net interest income and noninterest income.
16

CONSOLIDATED STATEMENTS OF INCOME (unaudited)
($ in thousands, except share and per share data)For the Year Ended
20252024% or Basis Point vs.
Interest income
Interest and fees on loans$136,874 $124,361 10 %
Interest on AFS debt securities6,312 6,227 1 
Other interest income7,142 7,032 2 
Total interest income150,328 137,620 9 
Interest expense
Interest on deposits68,849 68,121 1 
Interest on borrowings2,853 3,891 (27)
Interest on subordinated note278 — NM
Total interest expense71,980 72,012 0 
Net interest income78,348 65,608 19 
Provision for credit losses3,580 2,757 30 
Net interest income after provision for credit losses74,768 62,851 19 
Noninterest income
Service charges on deposits3,204 3,261 (2)%
Loan servicing fees, net of amortization3,281 2,898 13 
Gains on sale of loans7,070 8,313 (15)
Other income2,777 1,955 42 
Total noninterest income16,332 16,427 (1)
Noninterest expense
Salaries and employee benefits35,987 31,717 13 
Occupancy and equipment6,760 6,673 1 
Data processing and communication1,456 2,245 (35)
Professional fees1,793 1,535 17 
FDIC insurance and regulatory assessments1,783 1,672 7 
Promotion and advertising505 533 (5)
Directors’ fees677 640 6 
Foundation donation and other contributions2,570 2,108 22 
Other expenses4,242 3,076 38 
Total noninterest expense55,773 50,199 11 
Income before income tax expense35,327 29,079 21 
Income tax expense9,672 8,010 21 
Net income$25,655 $21,069 22 %
Book value per share, at period-end$15.31 $13.83 11 %
EPS - basic1.72 1.39 24 
EPS - diluted1.72 1.39 24 
Shares of common stock outstanding, at period-end14,889,54014,819,8660 %
Weighted average shares:
- Basic14,872,42914,871,8760 %
- Diluted14,906,05414,871,8760 %
ROA1.01 %0.92 %9 bps
ROE11.92 10.68 124 bps
Efficiency ratio (1)
58.91 61.19 (228) bps
NM — Not meaningful
(1)Represents noninterest expense divided by the sum of net interest income and noninterest income.
17

ASSET QUALITY
($ in thousands)As of and For the Three Months Ended
4Q20253Q20254Q2024
Nonaccrual loans (1)(2)
$14,071 $12,312 $7,820 
Loans 90 days or more past due, accruing— — — 
Nonperforming loans14,071 12,312 7,820 
OREO— 845 1,237 
Nonperforming assets$14,071 $13,157 $9,057 
Criticized loans (3) by risk categories:
Special mention loans$10,885 $8,695 $6,309 
Classified loans (4)
21,175 19,380 13,261 
Total criticized loans$32,060 $28,075 $19,570 
Nonperforming loans to gross loans0.64 %0.57 %0.40 %
Nonperforming assets to gross loans & OREO0.64 0.61 0.46 
Nonperforming assets to total assets0.53 0.50 0.38 
Classified loans to gross loans0.97 0.90 0.68 
Criticized loans to gross loans1.46 1.31 1.00 
Allowance for credit losses ratios:
As a % of gross loans1.28 %1.27 %1.27 %
As a % of nonperforming loans199 222 317 
As a % of nonperforming assets199 207 274 
As a % of classified loans132 141 187 
As a % of criticized loans87 97 127 
Net recoveries (charge-offs) $158 $(193)$(23)
Net recoveries (charge-offs) (5) to average gross loans
0.03 %(0.04)%(0.00)%
(1)Excludes loans held-for-sale.
(2)Excludes the guaranteed portion of loans that are in liquidation totaling $20.9 million, $17.6 million and $16.3 million as of December 31, 2025, September 30, 2025 and December 31, 2024, respectively.
(3)Excludes the guaranteed portion of loans that are in liquidation totaling $27.3 million, $20.8 million and $16.3 million as of December 31, 2025, September 30, 2025 and December 31, 2024, respectively.
(4)Consists of substandard, doubtful and loss categories.
(5)Annualized.


18

($ in thousands)4Q20253Q20254Q2024
Accruing delinquent loans 30-89 days past due by loan type:
CRE$— $— $— 
SBA2,562 1,390 370 
C&I— 617 15 
Home mortgage 557 852 2,774 
Total 30-59 days3,119 2,859 3,159 
CRE— — — 
SBA1,168 378 211 
C&I— — — 
Home mortgage 2,005 2,149 5,594 
Total 60-89 days3,173 2,527 5,805 
CRE— — — 
SBA3,730 1,768 581 
C&I— 617 15 
Home mortgage2,562 3,001 8,368 
Total accruing delinquent loans 30-89 days past due$6,292 $5,386 $8,964 
Nonaccrual loans (1) by loan type:
CRE$3,424 $2,365 $1,943 
SBA9,840 8,538 5,877 
C&I218 — — 
Home mortgage589 1,409 — 
Total nonaccrual$14,071 $12,312 $7,820 
Criticized loans(2) by loan type:
CRE$10,364 $9,345 $9,042 
SBA18,218 14,925 10,128 
C&I1,338 864 400 
Home mortgage2,140 2,941 — 
Total criticized$32,060 $28,075 $19,570 
(1)Excludes the guaranteed portion of loans that were in liquidation totaling $20.9 million, $17.6 million and $16.3 million as of December 31, 2025, September 30, 2025 and December 31, 2024, respectively.
(2)Excludes the guaranteed portion of loans that were in liquidation totaling $27.3 million, $20.8 million and $16.3 million as of December 31, 2025, September 30, 2025 and December 31, 2024, respectively.
19

AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS
For the Three Months Ended
4Q20253Q20254Q2024
($ 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$135,883 $1,360 3.92 %$134,263 $1,502 4.38 %$120,170 $1,456 4.74 %
Other investments17,186 321 7.46 17,112 320 7.48 16,478 315 7.63 
AFS debt securities, at fair value198,335 1,680 3.39 199,766 1,699 3.40 193,738 1,551 3.20 
CRE1,119,031 17,616 6.25 1,065,460 16,689 6.21 960,639 14,653 6.07 
SBA282,501 6,557 9.21 286,556 6,841 9.47 269,842 6,542 9.65 
C&I220,274 3,846 6.93 188,146 3,537 7.46 217,816 4,086 7.46 
Home mortgage581,824 7,889 5.42 591,939 7,931 5.36 499,151 6,441 5.16 
Consumer and other602 13 8.75 129 3 9.86 205 7 13.55 
Loans (2)
2,204,232 35,921 6.48 2,132,230 35,001 6.52 1,947,653 31,729 6.49 
Total interest-earning assets2,555,636 39,282 6.11 2,483,371 38,522 6.16 2,278,039 35,051 6.12 
Noninterest-earning assets79,743 83,238 85,218 
Total assets$2,635,379 $2,566,609 $2,363,257 
Interest-bearing liabilities:
Money market deposits and others$389,958 $3,241 3.30 %$425,248 $3,793 3.54 %$335,197 $3,100 3.68 %
Time deposits1,342,337 14,083 4.16 1,275,417 13,649 4.25 1,151,112 14,082 4.87 
Total interest-bearing deposits1,732,295 17,324 3.97 1,700,665 17,442 4.07 1,486,309 17,182 4.60 
Borrowings86,905 817 3.73 76,250 734 3.82 86,525 940 4.32 
Subordinated note13,896 278 7.99 — — — — — — 
Total interest-bearing liabilities1,833,096 18,419 3.99 1,776,915 18,176 4.06 1,572,834 18,122 4.58 
Noninterest-bearing liabilities:
Noninterest-bearing deposits532,695 528,926 543,546 
Other noninterest-bearing liabilities44,985 43,890 42,925 
Total noninterest-bearing liabilities577,680 572,816 586,471 
Shareholders’ equity224,603 216,878 203,952 
Total liabilities and shareholders’ equity$2,635,379 $2,566,609 $2,363,257 
Net interest income / interest rate spreads$20,863 2.12 %$20,346 2.10 %$16,929 1.54 %
Net interest margin3.25 %3.26 %2.96 %
Cost of deposits & cost of funds:
Total deposits / cost of deposits$2,264,990 $17,324 3.03 %$2,229,591 $17,442 3.10 %$2,029,855 $17,182 3.37 %
Total funding liabilities / cost of funds2,365,791 18,419 3.09 2,305,841 18,176 3.13 2,116,380 18,122 3.41 
(1)Annualized.
(2)Includes loans held-for-sale.


20

For the Year Ended
20252024
($ in thousands)Average
Balance
Interest Income/Expense
Average Yield/RateAverage
Balance
Interest Income/Expense
Average Yield/Rate
Interest-earning assets:
Interest-bearing deposits in other banks$135,551 $5,882 4.34 %$109,579 $5,766 5.26 %
Other investments16,934 1,260 7.44 16,371 1,266 7.74 
AFS debt securities, at fair value190,798 6,312 3.31 194,969 6,227 3.19 
CRE1,053,827 65,298 6.20 929,890 56,883 6.12 
SBA279,600 26,223 9.38 263,442 27,978 10.62 
C&I203,997 14,827 7.27 178,533 13,765 7.71 
Home mortgage572,093 30,501 5.33 504,030 25,648 5.09 
Consumer & other261 25 9.62 835 87 10.32 
Loans (1)
2,109,778 136,874 6.49 1,876,730 124,361 6.63 
Total interest-earning assets2,453,061 150,328 6.13 2,197,649 137,620 6.26 
Noninterest-earning assets81,066 87,745 
Total assets$2,534,127 $2,285,394 
Interest-bearing liabilities:
Money market deposits and others$394,603 $13,705 3.47 %$346,104 $14,135 4.08 %
Time deposits1,273,661 55,144 4.33 1,084,107 53,986 4.98 
Total interest-bearing deposits1,668,264 68,849 4.13 1,430,211 68,121 4.76 
Borrowings72,235 2,853 3.95 88,186 3,891 4.41 
Subordinated note
3,502 278 7.93 — — — 
Total interest-bearing liabilities1,744,001 71,980 4.13 1,518,397 72,012 4.74 
Noninterest-bearing liabilities:
Noninterest-bearing deposits532,823 528,877 
Other noninterest-bearing liabilities42,152 40,839 
Total noninterest-bearing liabilities574,975 569,716 
Shareholders’ equity215,151 197,281 
Total liabilities and shareholders’ equity$2,534,127 $2,285,394 
Net interest income / interest rate spreads$78,348 2.00 %$65,608 1.52 %
Net interest margin3.19 %2.99 %
Cost of deposits & cost of funds:
Total deposits / cost of deposits$2,201,087 $68,849 3.13 %$1,959,088 $68,121 3.48 %
Total funding liabilities / cost of funds2,276,824 71,980 3.16 2,047,274 72,012 3.52 
(1)Includes loans held-for-sale.
21