EX-99.1 2 opbk8-kerx2025xq3xex991.htm EX-99.1 Document

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News Release
OP Bancorp Reports Third Quarter 2025 Net Income of $6.7 Million, Diluted EPS of $0.45
compared with second quarter 2025 net income of $6.3 million, diluted EPS of $0.42,
and third quarter 2024 net income of $5.4 million, diluted EPS of $0.36
Higher revenue and net income; improved efficiency ratio; stable credit quality

Los Angeles, CA (October 23, 2025) — OP Bancorp (the “Company”) (NASDAQ: OPBK), parent company of Open Bank, today reported:
($ in thousands, except per share data)As of and For the QuarterThird Quarter Highlights
3Q20252Q20253Q2024Comparisons reflect 3Q25 vs. 2Q25
Income Statement:Income Statement
Net interest income$20,346 $19,721 $16,506 
•Net interest income increased 3% and net interest margin expanded 3 bps to 3.26%.
•Noninterest income increased 4%.
•Revenue increased 3%.
•Noninterest expense decreased 3% and efficiency ratio improved to 55.68%.
•Net income increased 6%.
•Diluted EPS increased 7% to $0.45.
Noninterest income4,130 3,968 4,240 
Revenue24,476 23,689 20,746 
Provision for credit losses1,175 1,206 448 
Noninterest expense13,629 14,037 12,720 
Net income$6,703 $6,333 $5,436 
Diluted Earnings Per Share (“EPS”)$0.45 $0.42 $0.36 
Net interest margin (1)
3.26 %3.23 %2.95 %
Efficiency ratio (2)
55.68 59.25 61.31 
Balance Sheet:Balance Sheet
Average loans (3)
$2,132,225 $2,095,168 $1,905,952 
•Average loans increased 2%.
•Average deposits remained relatively unchanged.
Average deposits2,229,5912,223,5751,998,633
Credit Quality:Credit Quality
Net charge-offs (1) to average gross loans
0.04 %0.06 %0.01 %
•Net loan charge-offs stayed at a low level.
•Allowance for credit losses to gross loans remained stable.
Allowance for credit losses on loans to gross loans1.27 1.27 1.19 
Selected Ratios:Performance and Capital
Return on average assets ("ROA") (1)
1.04 %1.00 %0.94 %
•ROA and ROE improved, reflecting enhanced profitability and efficient use of assets and equity.
Return on average equity ("ROE") (1)
12.36 11.97 10.95 
Common equity tier 1 capital (“CET1”)10.92 11.01 11.57 
•CET1 remained strong.
(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:
“We delivered another solid quarter of performance, highlighted by a 6% increase in net income supported by a 3% rise in revenue and a 3% decrease in noninterest expense compared to prior quarter. Our net interest margin expanded by 3 basis points to 3.26%, and our efficiency ratio improved to 55.68%, reflecting our continued focus on profitability and operational discipline. Credit quality remained stable, with low net charge-offs and a steady allowance for credit losses, demonstrating the strength of our portfolio and prudent risk management. As we look ahead, we remain focused on driving sustainable growth and maintaining sound financial management,” 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 3Q2025 vs.
3Q20252Q20253Q20242Q20253Q2024
Interest Income
Interest income$38,522 $37,665 $35,299 2 %9 %
Interest expense18,176 17,944 18,793 1 (3)
Net interest income$20,346 $19,721 $16,506 3 %23 %

($ in thousands)For the Three Months EndedAverage Yield/Rate Change 3Q2025 vs.
3Q20252Q20253Q2024
Interest Income/Expense
Average Yield/Rate(1)
Interest Income/Expense
Average Yield/Rate(1)
Interest Income/Expense
Average Yield/Rate(1)
2Q20253Q2024
Interest-earning Assets:
Loans$35,001 6.52 %$34,263 6.56 %$31,885 6.66 %(4) bps(14) bps
Total interest-earning assets38,522 6.16 37,665 6.18 35,299 6.30 (2) bps(14) bps
Interest-bearing Liabilities:
Interest-bearing deposits17,442 4.07 17,475 4.18 17,921 4.85 (11) bps(78) bps
Total interest-bearing liabilities18,176 4.06 17,944 4.18 18,793 4.82 (12) bps(76) bps
Ratios:
Net interest income / interest rate spreads20,346 2.10 19,721 2.00 16,506 1.48 10 bps62 bps
Net interest margin3.26 3.23 2.95 3 bps31 bps
Total deposits / cost of deposits17,442 3.10 17,475 3.15 17,921 3.57 (5) bps(47) bps
Total funding liabilities / cost of funds18,176 3.13 17,944 3.17 18,793 3.60 (4) bps(47) bps
(1)Annualized.
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($ in thousands)For the Three Months EndedAverage Yield Change 3Q2025 vs.
3Q20252Q20253Q2024
Interest Income
Average Yield(1)
Interest Income
Average Yield(1)
Interest Income
Average Yield(1)
2Q20253Q2024
Loan Yield Component:
Contractual interest rate$34,312 6.40 %$33,437 6.40 %$31,182 6.52 %— bps(12) bps
Accretion of SBA loan discount(2)
972 0.18 785 0.15 918 0.19 3 bps(1) bps
Amortization of net deferred fees70 0.01 (60)(0.01)23 0.00 2 bps1 bps
Amortization of premium(321)(0.06)(329)(0.06)(487)(0.10)— bps4 bps
Amortization of premium - Home mortgage payoffs(35)(0.01)(63)(0.01)— — — bps(1) bps
Net interest recognized on nonaccrual loans(224)(0.04)162 0.03 (61)(0.01)(7) bps(3) bps
Prepayment penalty income and other fees(3)
227 0.04 331 0.06 310 0.06 (2) bps(2) bps
Yield on loans$35,001 6.52 %$34,263 6.56 %$31,885 6.66 %(4) bps(14) bps
(1)Annualized.
(2)Includes discount accretion from SBA loan payoffs of $499 thousand, $293 thousand and $426 thousand for the three months ended September 30, 2025, June 30, 2025 and September 30, 2024, respectively.
(3)Includes prepayment penalty income of $127 thousand, $166 thousand and $114 thousand for the three months ended September 30, 2025, June 30, 2025 and September 30, 2024, respectively, from Commercial Real Estate (“CRE”) and SBA loans.

Third Quarter 2025 vs. Second Quarter 2025
Net interest income increased by $625 thousand, or 3%, primarily driven by loan growth, partially offset by higher borrowings and lower loan yields. Net interest margin expanded by 3 basis points to 3.26%.

◦Loans: Interest income increased by $738 thousand, largely attributable to a $37.1 million increase in average loan balances. This increase was partially offset by a 4 basis point decline in loan yields, reflecting increased interest income reversals due to changes in nonaccrual status compared to the prior quarter.
◦Borrowings: Interest expense increased by $265 thousand, mainly due to a $29.5 million increase in average balances of Federal Home Loan Bank (“FHLB”) advances.
◦Deposits: Interest expense decreased slightly by $33 thousand, primarily due to an 11 basis point reduction in interest-bearing deposit costs, reflecting the repricing of time deposits in response to the downward shift in federal funds rate that began in the late 2024. The decrease was nearly offset by a $24.6 million increase in average interest-bearing deposit balances.

4

Third Quarter 2025 vs. Third Quarter 2024
Net interest income increased by $3.8 million, or 23%. The increase was due to loan growth and lower deposit rates. These changes were partially offset by interest-bearing deposit growth. Net interest margin rose 31 basis points to 3.26%.
◦Loans: Interest income increased by $3.1 million, largely driven by a $226.3 million increase in average loan balances. This increase was partially offset by a 14 basis point decline in loan yields, reflecting the repricing of existing loans at lower interest rates following the 2024 reduction in the federal funds rate.
◦Deposits: Interest expense decreased by $479 thousand, mainly driven by a 78 basis point reduction in interest-bearing deposit costs, resulting from the repricing of deposit products in response to the federal funds rate cut implemented in 2024. This decrease was partially offset by a $230.2 million increase in average interest-bearing deposit balances.

Provision for Credit Losses
($ in thousands)For the Three Months Ended $ Change 3Q2025 vs.
3Q20252Q20253Q20242Q20253Q2024
Provision for credit losses on loans$1,206 $1,255 $234 $(49)$972 
Provision for (reversal of) credit losses on off-balance sheet exposure(31)(49)214 18 (245)
Provision for credit losses$1,175 $1,206 $448 $(31)$727 

Third Quarter 2025 vs. Second Quarter 2025
Provision for credit losses on loans remained relatively stable, decreasing by $49 thousand. The modest decline was primarily driven by reductions in qualitative reserves, following qualitative factor adjustments made after management reassessed the underlying assumptions. These adjustments were mostly offset by the increases resulting from risk rating downgrades and net charge-offs.
Third Quarter 2025 vs. Third Quarter 2024
Provision for credit losses on loans increased by $972 thousand, primarily due to higher historical loss factors stemming from risk rating downgrades, increased specific reserves, net charge-offs, and loan growth compared to the prior period.

5

Noninterest Income
($ in thousands)For the Three Months Ended% Change 3Q2025 vs.
3Q20252Q20253Q20242Q20253Q2024
Noninterest Income
Service charges on deposits$725 $1,017 $889 (29)%(18)%
Loan servicing fees, net of amortization724 900 693 (20)4 
Gains on sale of loans2,037 1,441 2,088 41 (2)
Other income644 610 570 6 13 
Total noninterest income$4,130 $3,968 $4,240 4 %(3)%

Third Quarter 2025 vs. Second Quarter 2025
Noninterest income increased by $162 thousand, or 4%, primarily due to higher gains on sale of loans, partially offset by declines in service charges on deposits and loan servicing fees.

◦Gains on Sale of Loans: Increased by $596 thousand, primarily driven by higher SBA loan sale activity. During the quarter, the Bank sold $36.8 million in SBA loans at an average premium rate of 6.71%, compared to $25.3 million sold at an average premium rate of 7.05% in the prior period.
◦Service Charges on Deposits: Decreased by $292 thousand, primarily due to the closure of certain currency exchange-related accounts.
◦Loan Servicing Fees, Net of Amortization: Decreased by $176 thousand, mainly due to higher amortization of servicing assets, reflecting elevated payoff activity within servicing portfolio.

Third Quarter 2025 vs. Third Quarter 2024
Noninterest income decreased by $110 thousand, or 3%, primarily due to lower service charges on deposits.
◦Service Charges on Deposits: Decreased by $164 thousand, largely driven by the closure of certain currency exchange-related accounts.
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Noninterest Expense
($ in thousands)For the Three Months Ended% Change 3Q2025 vs.
3Q20252Q20253Q20242Q20253Q2024
Noninterest Expense
Salaries and employee benefits$8,892 $9,075 $8,031 (2)%11 %
Occupancy and equipment1,676 1,584 1,676 6 — 
Data processing and communication263 306 634 (14)(59)
Professional fees419 418 346 0 21 
FDIC insurance and regulatory assessments428 506 391 (15)9 
Promotion and advertising126 232 151 (46)(17)
Directors’ fees151 198 154 (24)(2)
Foundation donation and other contributions671 636 549 6 22 
Other expenses1,003 1,082 788 (7)27 
Total noninterest expense$13,629 $14,037 $12,720 (3)%7 %

Third Quarter 2025 vs. Second Quarter 2025
Noninterest expense decreased by $408 thousand, or 3%, primarily due to reductions in salaries and employee benefits, promotion and advertising, and other expenses.
◦Salaries and Employee Benefits: Decreased by $183 thousand, mainly due to lower incentive compensation accruals, resulting from a non-recurring adjustment recognized in the prior quarter.
◦Promotion and Advertising: Decreased by $106 thousand, reflecting the absence of a one-time accrual adjustment that was recorded in the second quarter of 2025.
◦Other Expenses: Decreased by $79 thousand, primarily due to reduced armored car service costs following the closure of certain currency exchange-related accounts.

Third Quarter 2025 vs. Third Quarter 2024
Noninterest expense increased by $909 thousand, or 7%, primarily due to higher salaries and employee benefits, and other expenses, partially offset by lower data processing and communication.
◦Salaries and Employee Benefits: Increased by $861 thousand, mainly driven by staffing growth and annual merit-based salary adjustments. Higher health insurance costs also contributed to the increase in employee benefits.
◦Other Expenses: Increased by $215 thousand, primarily due to reclassification of credit-related fees collections from contra-expense to income in 2025. This regrouping reflects a change in presentation rather than a change in underlying activity.
◦Data Processing and Communication: Decreased by $371 thousand, largely due to contractual credits received following the conversion to a new core banking system in the fourth quarter of 2024.
7

Income Tax Expense

Third Quarter 2025 vs. Second Quarter 2025
Income tax expense increased by $856 thousand to $3.0 million, with the effective tax rate rising to 30.7% from 25.0%. The increases were primarily driven by higher pre-tax income and a one-time revaluation of deferred tax assets, associated with the adoption of the California’s single sales factor apportionment method and the implementation of an enhanced interim state tax apportionment methodology.

Third Quarter 2025 vs. Third Quarter 2024
Income tax expense increased by $827 thousand to $3.0 million, with the effective tax rate rising to 30.7% from 28.3%. The increases were primarily attributable to the factors noted above.

BALANCE SHEET HIGHLIGHTS

Loans
($ in thousands)As of% Change 3Q2025 vs.
3Q20252Q20253Q20242Q20253Q2024
CRE$1,092,808 $1,021,431 $966,472 7 %13 %
SBA256,211 263,424 252,379 (3)2 
C&I214,419 193,359 212,476 11 1 
Home mortgage587,641 593,256 499,666 (1)18 
Consumer & other138 110 14 25 886 
Gross loans$2,151,217 $2,071,580 $1,931,007 4 %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 3Q2025 vs.
3Q20252Q20253Q20242Q20253Q2024
AmountRateAmountRateAmountRate
CRE$98,799 6.36 %$39,734 7.00 %$64,249 7.50 %149 %54 %
SBA
15,051 8.72 33,811 8.64 20,167 9.75 (55)(25)
C&I9,984 6.96 3,136 7.72 7,861 8.18 218 27 
Home mortgage6,861 6.69 54,837 6.64 10,205 7.23 (87)(33)
Consumer and other — — — — — ——— 
Gross loans (1)
$130,695 6.69 %$131,518 7.29 %$102,482 7.97 %(1)%28 %
(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
3Q20252Q20253Q2024
Beginning Balance$2,071,580 $2,043,885 $1,870,106 
Originations130,695 131,518 102,482 
Net change in line utilization31,167 27,287 49,695 
Purchases8,930 1,750 862 
Sales(36,806)(25,320)(35,576)
Payoffs & paydowns(67,639)(90,923)(54,440)
Decrease (increase) in loans held-for-sale13,536 (15,461)(1,674)
Other(246)(1,156)(448)
Total79,637 27,695 60,901 
Ending balance$2,151,217 $2,071,580 $1,931,007 

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
3Q20252Q20253Q2024
%Rate%Rate%Rate
Fixed rate31 %5.61 %31 %5.54 %36 %5.42 %
Hybrid rate41 5.89 40 5.81 35 5.60 
Variable rate28 8.02 29 8.16 29 8.94 
Gross loans100 %6.40 %100 %6.42 %100 %6.52 %

The following table presents the maturity of gross loans by interest rate type accompanied with the weighted average contractual rates for the periods indicated:
($ in thousands)As of September 30, 2025
Within One YearOne Year Through Five YearsAfter Five YearsTotal
AmountRateAmountRateAmountRateAmountRate
Fixed rate$212,026 5.66 %$274,741 6.02 %$191,661 4.98 %$678,428 5.61 %
Hybrid rate— — 209,456 4.74 664,989 6.26 874,445 5.89 
Variable rate84,705 7.60 158,959 7.49 354,680 8.36 598,344 8.02 
Gross loans$296,731 6.21 %$643,156 5.97 %$1,211,330 6.67 %$2,151,217 6.40 %

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 3Q2025 vs.
3Q20252Q20253Q20242Q20253Q2024
Allowance for credit losses on loans, beginning$26,286 $25,368 $22,760 $918 $3,526 
Provision for credit losses on loans
1,206 1,255 234 (49)972 
Gross charge-offs(195)(542)(40)347 (155)
Gross recoveries2 205 6 (203)(4)
Net (charge-offs) recoveries(193)(337)(34)144 (159)
Allowance for credit losses on loans, ending
$27,299 $26,286 $22,960 $1,013 $4,339 
Allowance for credit losses on off-balance sheet exposure, beginning$360 $409 $458 $(49)$(98)
Provision for (reversal of) credit losses on off-balance sheet exposure
(31)(49)214 18 (245)
Allowance for credit losses on off-balance sheet exposure, ending
$329 $360 $672 $(31)$(343)

Asset Quality
($ in thousands)As of and For the Three Months Ended% or Basis Point Change 3Q2025 vs.
3Q20252Q20253Q20242Q20253Q2024
Accruing loans 30-89 days past due$5,386 $9,804 $10,306 (45)%(48)%
As a % of gross loans0.25 %0.47 %0.53 %(22) bps(28) bps
Nonperforming loans (1)
$12,312 $8,916 $3,620 38 %240 %
Nonperforming assets (1)
13,157 10,153 4,857 30 171 
Nonperforming loans to gross loans0.57 %0.43 %0.19 %14 bps38 bps
Nonperforming assets to total assets0.50 0.40 0.20 10 bps30 bps
Criticized loans (2)(3)
$28,075 $23,758 $16,500 18.2 %70.2 %
Criticized loans to gross loans1.31 %1.15 %0.85 %16 bps46 bps
Allowance for credit losses ratios:
As a % of gross loans1.27 %1.27 %1.19 %— bps8 bps
As a % of nonperforming loans222 295 634 (73)%(412)%
As a % of nonperforming assets207 259 473 (52)(266)
As a % of criticized loans97 111 139 (14)(42)
Net charge-offs (4) to average gross loans
0.04 0.06 0.01 (2) bps3 bps
(1)Excludes the guaranteed portion of loans that were in liquidation totaling $17.6 million, $13.9 million and $11.1 million as of September 30, 2025, June 30, 2025 and September 30, 2024, respectively.
(2)Excludes the guaranteed portion of loans that were in liquidation totaling $20.8 million, $17.1 million and $11.1 million as of September 30, 2025, June 30, 2025 and September 30, 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 0.57% of gross loans and annualized net charge-offs at just 0.04%. The allowance remained adequate at 1.27% of gross loans.
◦Accruing loans 30-89 days past due decreased to $5.4 million, primarily due to $4.2 million in SBA and home mortgage loans returning to current status and $2.5 million in reclassified SBA loans to nonaccrual status. These reductions were partially offset by $2.8 million in new past due balances across various loan categories.
◦Nonperforming loans increased by $3.4 million, primarily attributable to the reclassification of loans previously in the accruing 30-89 days past due category.
◦Criticized loans increased by $4.3 million, primarily attributable to downgrades of SBA and home mortgage loans.

Deposits
($ in thousands)As of% Change 3Q2025 vs.
3Q20252Q20253Q2024
Amount%Amount%Amount%2Q20253Q2024
Noninterest-bearing deposits$543,972 24 %$565,683 25 %$561,801 27 %(4)%(3)%
Money market deposits and others402,891 18 431,252 19 343,188 17 (7)17 
Time deposits1,326,554 58 1,257,793 56 1,159,614 56 5 14 
Total deposits$2,273,417 100 %$2,254,728 100 %$2,064,603 100 %1 %10 %
Estimated uninsured deposits$1,131,091 50 %$1,156,311 51 %$946,406 46 %(2)%20 %
As of September 30, 2025 vs. June 30, 2025
Total deposits increased by $18.7 million or 1%, primarily driven by a $68.8 million increase in time deposits, partially offset by a $28.4 million decrease in money market deposits and others, and a $21.7 million decrease in noninterest-bearing deposits. The increase in time deposits reflects new customers opening CD accounts, existing customers reallocating funds seeking higher yields, and a rise in wholesale CD balances to support loan growth. The declines in money market and noninterest-bearing deposits were primarily attributable to reductions in existing customer balances, reflecting operational funding needs.
As of September 30, 2025 vs. September 30, 2024
Total deposits increased by $208.8 million or 10%, primarily driven by growth of $166.9 million in time deposits and $59.7 million in money market deposits and others. The increase in time deposits was largely attributable to new customers opening CD accounts, reflecting a preference for higher-yielding products, as well as an increase in wholesale CD balances. The growth in money market deposits and others was mainly due to inflows from new customers and higher balances from existing customers.

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The following table sets forth the maturity of time deposits as of September 30, 2025:
As of September 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)$190,867 $281,670 $101,862 $93,108 $376 $667,883 
Time deposits ($250 or less)236,668 194,941 105,386 120,316 1,360 658,671 
Total time deposits$427,535 $476,611 $207,248 $213,424 $1,736 $1,326,554 
Weighted average rate4.28 %4.16 %4.26 %4.18 %2.84 %4.21 %

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)3Q20252Q20253Q2024
Liquidity Assets:
Cash and cash equivalents$166,748 $205,388 $166,756 
Available-for-sale ("AFS") debt securities200,760 175,000 199,373 
Liquid assets$367,508 $380,388 $366,129 
Liquid assets to total assets14 %15 %15 %
Available Borrowings:
Federal Home Loan Bank ("FHLB") —San Francisco$430,887 $443,207 $397,617 
Federal Reserve Bank210,584 223,373 207,782 
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$741,471 $766,580 $705,399 
Total available borrowings to total assets28 %30 %30 %
Liquid assets and available borrowings to total deposits49 %51 %52 %

Capital and Capital Ratios

On October 23, 2025, the Company’s Board of Directors declared a quarterly cash dividend of $0.12 per share of its common stock. The dividend is payable on or about November 20, 2025, to shareholders of record as of the close of business on November 6, 2025. The principal source of funds from which the Company pays dividends are the dividends received from the Bank. Future dividends are subject to Board of Directors’ approval and will depend on the Company’s earnings, financial condition, capital requirements, and other relevant factors. On August 28, 2025, the Company’s Board of Directors approved a stock repurchase program authorizing the repurchase of up to 700,000 shares of the Company’s common stock (the “Repurchase Program”). No shares were repurchased under the Repurchase Program during the third quarter of 2025.
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OP Bancorp(1)
Open BankWell-
Capitalized
Requirement
Minimum
Capital Ratio+
Conservation
Buffer(2)
Risk-Based Capital Ratios (3):
Total capital12.17 %12.06 %10.00 %10.50 %
Tier 1 capital10.92 10.81 8.00 8.50 
CET1 capital10.92 10.81 6.50 7.00 
Tier 1 leverage9.01 8.93 5.00 4.00 
(1)The capital requirements are only applicable to the Bank, and the Company's ratios are included for comparison purpose.
(2)An additional 2.5% capital conservation buffer above the minimum capital ratios are required in order to avoid limitations on distributions, including dividend payments and certain discretionary bonuses to executive officers. This buffer does not apply and is not included in the tier 1 leverage ratio.
(3)The Company’s September 30, 2025 regulatory capital ratios and risk-weighted assets are preliminary.
OP Bancorp% or Basis Point Change 3Q2025 vs.
3Q20252Q20253Q20242Q20253Q2024
Risk-Based Capital Ratios:
Total capital12.17 %
(1)
12.26 %12.79 %(9) bps(62) bps
Tier 1 capital10.92 
(1)
11.01 11.57 (9) bps(65) bps
CET1 capital10.92 
(1)
11.01 11.57 (9) bps(65) bps
Tier 1 leverage9.01 
(1)
8.96 9.30 5 bps(29) bps
Risk-weighted Assets ($ in thousands)$2,127,000 
(1)
$2,063,034 $1,876,722 3 %13 %
(1)The Company’s September 30, 2025 regulatory capital ratios and risk-weighted assets are preliminary.

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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 June 30, 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
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CONSOLIDATED BALANCE SHEETS (unaudited)
($ in thousands)As of% Change 3Q2025 vs.
3Q20252Q20253Q20242Q20253Q2024
Assets  
Cash and due from banks$10,931 $16,592 $24,519 (34)%(55)%
Interest-bearing deposits with banks155,817 188,796 142,237 (17)10 
Cash and cash equivalents166,748 205,388 166,756 (19)0 
AFS debt securities, at fair value200,760 175,000 199,373 15 1 
Other investments17,164 17,101 16,520 0 4 
Loans held-for-sale6,480 20,016 8,160 (68)(21)
CRE1,092,808 1,021,431 966,472 7 13 
SBA256,211 263,424 252,379 (3)2 
C&I214,419 193,359 212,476 11 1 
Home mortgage587,641 593,256 499,666 (1)18 
Consumer and other 138 110 14 25886 
Gross loans2,151,217 2,071,580 1,931,007 4 11 
Allowance for credit losses on loans(27,299)(26,286)(22,960)4 19 
Net loans2,123,918 2,045,294 1,908,047 4 11 
Premises and equipment, net6,995 6,852 4,961 2 41 
Accrued interest receivable10,337 9,991 9,479 3 9 
Servicing assets10,429 10,572 10,877 (1)(4)
Company owned life insurance23,437 23,259 22,739 1 3 
Deferred tax assets, net12,099 12,633 12,288 (4)(2)
Other real estate owned ("OREO")845 1,237 1,237 (32)(32)
Operating right-of-use assets9,347 9,887 7,870 (5)19 
Other assets25,655 26,365 19,673 (3)30 
Total assets$2,614,214 $2,563,595 $2,387,980 2 %9 %
Liabilities and Shareholders' Equity
Liabilities:
Noninterest-bearing$543,972 $565,683 $561,801 (4)%(3)%
Money market and others402,891 431,252 343,188 (7)17 
Time deposits greater than $250667,883 643,350 564,547 4 18 
Other time deposits658,671 614,443 595,067 7 11 
Total deposits2,273,417 2,254,728 2,064,603 1 10 
FHLB advances75,000 50,000 75,000 50 — 
Accrued interest payable15,968 15,720 19,483 2 (18)
Operating lease liabilities11,826 12,243 8,417 (3)41 
Other liabilities16,504 17,186 16,874 (4)(2)
Total liabilities2,392,715 2,349,877 2,184,377 2 10 
Shareholders' equity:
Common stock72,984 72,984 73,697 — (1)
Additional paid-in capital11,658 11,484 11,713 2 0 
Retained earnings148,031 143,114 131,588 3 12 
Accumulated other comprehensive loss, net of tax(11,174)(13,864)(13,395)(19)(17)
Total shareholders’ equity221,499 213,718 203,603 4 9 
Total liabilities and shareholders' equity$2,614,214 $2,563,595 $2,387,980 2 %9 %

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CONSOLIDATED STATEMENTS OF INCOME (unaudited)
($ in thousands, except share and per share data)For the Three Months Ended% or Basis Point Change 3Q2025 vs.
3Q20252Q20253Q20242Q20253Q2024
Interest income
Interest and fees on loans$35,001 $34,263 $31,885 2 %10 %
Interest on AFS debt securities1,699 1,437 1,626 18 4 
Other interest income1,822 1,965 1,788 (7)2 
Total interest income38,522 37,665 35,299 2 9 
Interest expense
Interest on deposits17,442 17,475 17,921 0 (3)
Interest on borrowings734 469 872 57 (16)
Total interest expense18,176 17,944 18,793 1 (3)
Net interest income20,346 19,721 16,506 3 23 
Provision for credit losses1,175 1,206 448 (3)162 
Net interest income after provision for credit losses19,171 18,515 16,058 4 19 
Noninterest income
Service charges on deposits725 1,017 889 (29)(18)
Loan servicing fees, net of amortization724 900 693 (20)4 
Gains on sale of loans2,037 1,441 2,088 41 (2)
Other income644 610 570 6 13 
Total noninterest income4,130 3,968 4,240 4 (3)
Noninterest expense
Salaries and employee benefits8,892 9,075 8,031 (2)11 
Occupancy and equipment1,676 1,584 1,676 6 — 
Data processing and communication263 306 634 (14)(59)
Professional fees419 418 346 0 21 
FDIC insurance and regulatory assessments428 506 391 (15)9 
Promotion and advertising126 232 151 (46)(17)
Directors’ fees151 198 154 (24)(2)
Foundation donation and other contributions671 636 549 6 22 
Other expenses1,003 1,082 788 (7)27 
Total noninterest expense13,629 14,037 12,720 (3)7 
Income before income tax expense9,672 8,446 7,578 15 28 
Income tax expense2,969 2,113 2,142 41 39 
Net income$6,703 $6,333 $5,436 6 %23 %
Book value per share, at period-end$14.88 $14.36 $13.75 4 %8 %
EPS - basic0.45 0.42 0.36 7 25 
EPS - diluted0.45 0.42 0.36 7 25 
Shares of common stock outstanding, at period-end14,885,61414,885,61414,811,671— %0 %
Weighted average shares:
- Basic14,885,61414,859,71814,812,1180 %0 %
- Diluted14,919,47414,859,71814,812,1180 1 
ROA (1)
1.04 %1.00 %0.94 %4 bps10 bps
ROE (1)
12.36 11.97 10.95 39 bps141 bps
Net interest margin (1)
3.26 3.23 2.95 3 bps31 bps
Efficiency ratio (2)
55.68 59.25 61.31 (357) bps(563) bps
(1)Annualized.
(2)Represents noninterest expense divided by the sum of net interest income and noninterest income.
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CONSOLIDATED STATEMENTS OF INCOME (unaudited)
($ in thousands, except share and per share data)For the Nine Months Ended
3Q20253Q2024% or Basis Point vs.
Interest income
Interest and fees on loans$100,953 $92,632 9 %
Interest on AFS debt securities4,632 4,676 (1)
Other interest income5,461 5,261 4 
Total interest income111,046 102,569 8 
Interest expense
Interest on deposits51,525 50,939 1 
Interest on borrowings2,036 2,951 (31)
Total interest expense53,561 53,890 (1)
Net interest income57,485 48,679 18 
Provision for credit losses3,117 1,210 158 
Net interest income after provision for credit losses54,368 47,469 15 
Noninterest income
Service charges on deposits2,742 2,294 20 %
Loan servicing fees, net of amortization2,631 2,040 29 
Gains on sale of loans5,497 6,116 (10)
Other income2,044 1,560 31 
Total noninterest income12,914 12,010 8 
Noninterest expense
Salaries and employee benefits26,743 23,440 14 
Occupancy and equipment4,841 4,991 (3)
Data processing and communication865 1,651 (48)
Professional fees1,244 1,147 8 
FDIC insurance and regulatory assessments1,421 1,143 24 
Promotion and advertising514 451 14 
Directors’ fees529 489 8 
Foundation donation and other contributions1,863 1,628 14 
Other expenses3,460 2,126 63 
Total noninterest expense41,480 37,066 12 
Income before income tax expense25,802 22,413 15 
Income tax expense7,206 6,315 14 
Net income$18,596 $16,098 16 %
Book value per share, at period-end$14.88 $13.75 8 %
EPS - basic1.25 1.06 18 
EPS - diluted1.25 1.06 18 
Shares of common stock outstanding, at period-end14,885,61414,811,6710 %
Weighted average shares:
- Basic14,867,62614,890,4790 %
- Diluted14,894,30914,890,4790 %
ROA (1)
0.99 %0.95 %4 bps
ROE (1)
11.70 11.00 70 bps
Net interest margin3.17 2.99 18 bps
Efficiency ratio (2)
58.92 61.08 (216) bps
(1)Annualized.
(2)Represents noninterest expense divided by the sum of net interest income and noninterest income.
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ASSET QUALITY
($ in thousands)As of and For the Three Months Ended
3Q20252Q20253Q2024
Nonaccrual loans (1)(2)
$12,312 $8,916 $3,620 
Loans 90 days or more past due, accruing— — — 
Nonperforming loans12,312 8,916 3,620 
OREO845 1,237 1,237 
Nonperforming assets$13,157 $10,153 $4,857 
Criticized loans (3) by risk categories:
Special mention loans$8,695 $9,257 $4,540 
Classified loans (4)
19,380 14,501 11,960 
Total criticized loans$28,075 $23,758 $16,500 
Nonperforming loans to gross loans0.57 %0.43 %0.19 %
Nonperforming assets to gross loans & OREO0.61 0.49 0.25 
Nonperforming assets to total assets0.50 0.40 0.20 
Classified loans to gross loans0.90 0.70 0.62 
Criticized loans to gross loans1.31 1.15 0.85 
Allowance for credit losses ratios:
As a % of gross loans1.27 %1.27 %1.19 %
As a % of nonperforming loans222 295 634 
As a % of nonperforming assets207 259 473 
As a % of classified loans141 181 192 
As a % of criticized loans97 111 139 
Net charge-offs$193 $337 $34 
Net charge-offs (5) to average gross loans
0.04 %0.06 %0.01 %
(1)Excludes loans held-for-sale.
(2)Excludes the guaranteed portion of loans that are in liquidation totaling $17.6 million, $13.9 million and $11.1 million as of September 30, 2025, June 30, 2025 and September 30, 2024, respectively.
(3)Excludes the guaranteed portion of loans that are in liquidation totaling $20.8 million, $17.1 million and $11.1 million as of September 30, 2025, June 30, 2025 and September 30, 2024, respectively.
(4)Consists of substandard, doubtful and loss categories.
(5)Annualized.


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($ in thousands)3Q20252Q20253Q2024
Accruing delinquent loans 30-89 days past due by loan type:
CRE$— $— $— 
SBA1,390 4,509 1,420 
C&I617 — — 
Home mortgage 852 298 2,675 
Total 30-59 days2,859 4,807 4,095 
CRE— — — 
SBA378 1,883 1,180 
C&I— — — 
Home mortgage 2,149 3,114 5,031 
Total 60-89 days2,527 4,997 6,211 
CRE— — — 
SBA1,768 6,392 2,600 
C&I617 — — 
Home mortgage3,001 3,412 7,706 
Total accruing delinquent loans 30-89 days past due$5,386 $9,804 $10,306 
Nonaccrual loans (1) by loan type:
CRE$2,365 $1,802 $— 
SBA8,538 5,696 3,213 
C&I— — 407 
Home mortgage1,409 1,418 — 
Total nonaccrual$12,312 $8,916 $3,620 
Criticized loans(2) by loan type:
CRE$9,345 $8,816 $5,249 
SBA14,925 12,949 10,144 
C&I864 575 1,107 
Home mortgage2,941 1,418 — 
Total criticized$28,075 $23,758 $16,500 
(1)Excludes the guaranteed portion of loans that were in liquidation totaling $17.6 million, $13.9 million and $11.1 million as of September 30, 2025, June 30, 2025 and September 30, 2024, respectively.
(2)Excludes the guaranteed portion of loans that were in liquidation totaling $20.8 million, $17.1 million and $11.1 million as of September 30, 2025, June 30, 2025 and September 30, 2024, respectively.
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AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS
For the Three Months Ended
3Q20252Q20253Q2024
($ 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$134,263 $1,502 4.38 %$147,874 $1,648 4.41 %$109,003 $1,474 5.29 %
Other investments17,112 320 7.48 16,961 317 7.47 16,432 314 7.65 
AFS debt securities, at fair value199,766 1,699 3.40 180,193 1,437 3.19 199,211 1,626 3.26 
CRE1,065,460 16,689 6.21 1,028,961 16,013 6.24 945,828 14,759 6.21 
SBA286,556 6,841 9.47 283,130 6,618 9.38 268,687 7,107 10.52 
C&I188,146 3,537 7.46 195,547 3,667 7.52 187,748 3,642 7.72 
Home mortgage591,934 7,931 5.36 587,454 7,962 5.42 503,148 6,364 5.06 
Consumer and other129 3 9.86 76 3 15.86 541 13 9.37 
Loans (2)
2,132,225 35,001 6.52 2,095,168 34,263 6.56 1,905,952 31,885 6.66 
Total interest-earning assets2,483,366 38,522 6.16 2,440,196 37,665 6.18 2,230,598 35,299 6.30 
Noninterest-earning assets83,238 83,394 88,747 
Total assets$2,566,604 $2,523,590 $2,319,345 
Interest-bearing liabilities:
Money market deposits and others$425,248 $3,793 3.54 %$408,667 $3,586 3.52 %$343,429 $3,601 4.17 %
Time deposits1,275,417 13,649 4.25 1,267,363 13,889 4.40 1,127,078 14,320 5.05 
Total interest-bearing deposits1,700,665 17,442 4.07 1,676,030 17,475 4.18 1,470,507 17,921 4.85 
Borrowings76,250 734 3.82 46,707 469 4.04 80,326 872 4.32 
Total interest-bearing liabilities1,776,915 18,176 4.06 1,722,737 17,944 4.18 1,550,833 18,793 4.82 
Noninterest-bearing liabilities:
Noninterest-bearing deposits528,926 547,545 528,126 
Other noninterest-bearing liabilities43,890 41,624 41,892 
Total noninterest-bearing liabilities572,816 589,169 570,018 
Shareholders’ equity216,873 211,684 198,494 
Total liabilities and shareholders’ equity$2,566,604 $2,523,590 $2,319,345 
Net interest income / interest rate spreads$20,346 2.10 %$19,721 2.00 %$16,506 1.48 %
Net interest margin3.26 %3.23 %2.95 %
Cost of deposits & cost of funds:
Total deposits / cost of deposits$2,229,591 $17,442 3.10 %$2,223,575 $17,475 3.15 %$1,998,633 $17,921 3.57 %
Total funding liabilities / cost of funds2,305,841 18,176 3.13 2,270,282 17,944 3.17 2,078,959 18,793 3.60 
(1)Annualized.
(2)Includes loans held-for-sale.


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For the Nine Months Ended
3Q20253Q2024
($ 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$135,439 $4,522 4.40 %$106,022 $4,310 5.34 %
Other investments16,851 939 7.43 16,335 951 7.76 
AFS debt securities, at fair value188,258 4,632 3.28 195,383 4,676 3.19 
CRE1,031,854 47,681 6.18 919,566 42,230 6.13 
SBA278,621 19,666 9.44 261,293 21,436 10.96 
C&I198,512 10,982 7.40 165,343 9,679 7.82 
Home mortgage568,811 22,612 5.30 505,669 19,207 5.06 
Consumer & other146 12 10.85 1,046 80 10.10 
Loans (2)
2,077,944 100,953 6.49 1,852,917 92,632 6.68 
Total interest-earning assets2,418,492 111,046 6.13 2,170,657 102,569 6.30 
Noninterest-earning assets81,505 88,594 
Total assets$2,499,997 $2,259,251 
Interest-bearing liabilities:
Money market deposits and others$396,168 $10,463 3.53 %$349,766 $11,035 4.21 %
Time deposits1,250,518 41,062 4.39 1,061,609 39,904 5.02 
Total interest-bearing deposits1,646,686 51,525 4.18 1,411,375 50,939 4.82 
Borrowings67,290 2,036 4.05 88,743 2,951 4.44 
Total interest-bearing liabilities1,713,976 53,561 4.18 1,500,118 53,890 4.80 
Noninterest-bearing liabilities:
Noninterest-bearing deposits532,867 523,951 
Other noninterest-bearing liabilities41,198 40,141 
Total noninterest-bearing liabilities574,065 564,092 
Shareholders’ equity211,956 195,041 
Total liabilities and shareholders’ equity$2,499,997 $2,259,251 
Net interest income / interest rate spreads$57,485 1.95 %$48,679 1.50 %
Net interest margin3.17 %2.99 %
Cost of deposits & cost of funds:
Total deposits / cost of deposits$2,179,553 $51,525 3.16 %$1,935,326 $50,939 3.52 %
Total funding liabilities / cost of funds2,246,843 53,561 3.19 2,024,069 53,890 3.56 
(1)Annualized.
(2)Includes loans held-for-sale.
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