2024 First Quarter Highlights compared with 2023 Fourth Quarter:
-
Financial Results:
- Net income of $5.23 million, compared to $5.17 million
- Diluted earnings per share of $0.34, compared to $0.34
- Net interest income of $16.0 million, compared to $16.2 million
- Net interest margin of 3.06%, compared to 3.12%
- Provision for credit losses of $0.1 million, compared to $0.6 million
- Total assets of $2.23 billion, compared to $2.15 billion
- Gross loans of $1.80 billion, compared to $1.77 billion
- Total deposits of $1.90 billion, compared to $1.81 billion
-
Credit Quality:
- Allowance for credit losses to gross loans of 1.23%, compared to 1.25%
- Net charge-offs(1) to average gross loans(2) of 0.01%, compared to 0.04%
- Past due 30-89 days to gross loans of 0.22%, compared to 0.54%
- Nonperforming loans to gross loans of 0.24%, compared to 0.34%
- Criticized loans(3) to gross loans of 0.64%, compared to 0.76%
-
Capital Levels:
- Remained well-capitalized with a Common Equity Tier 1 (“CET1”) ratio of 12.34%
- Book value per common share increased to $13.00, compared to $12.84
- Repurchased 49,697 shares of common stock at an average price of $10.02 per share
- Paid quarterly cash dividend of $0.12 per share for the periods
___________________________________________________________
(1) Annualized.
(2) Includes loans held for sale.
(3) Includes special mention, substandard, doubtful, and loss categories.
OP Bancorp (the “Company”) (NASDAQ: OPBK), the holding company of Open Bank (the “Bank”), today reported its financial results for the first quarter of 2024. Net income for the first quarter of 2024 was $5.23 million, or $0.34 per diluted common share, compared with $5.17 million, or $0.34 per diluted common share, for the fourth quarter of 2023, and $7.5 million, or $0.48 per diluted common share, for the first quarter of 2023.
Min Kim, President and Chief Executive Officer:
“Despite the prolonged stress from the high interest rate environment, we were able to grow loans and deposits in the first quarter while controlling impacts to net interest margin at a manageable level. Our credit quality improved noticeably across all metrics even in the face of significant uncertainties that affect our borrowers. I’d like to thank our loyal customers and our dedicated employees for their continuing support of Open Bank, and we look forward to continuing to grow prudently while maintaining an optimum risk profile,” said Min Kim, President and Chief Executive.
SELECTED FINANCIAL HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
||||||||
($ in thousands, except per share data) |
|
As of and For the Three Months Ended |
|
% Change 1Q2024 vs. |
||||||||||||||
|
1Q2024 |
|
4Q2023 |
|
1Q2023 |
|
4Q2023 |
|
1Q2023 |
|||||||||
Selected Income Statement Data: |
|
|
|
|
|
|
|
|
|
|
||||||||
Net interest income |
|
$ |
15,979 |
|
|
$ |
16,230 |
|
|
$ |
17,892 |
|
|
(1.5 |
)% |
|
(10.7 |
)% |
Provision for (reversal of) credit losses |
|
|
145 |
|
|
|
630 |
|
|
|
(338 |
) |
|
(77.0 |
) |
|
(142.9 |
) |
Noninterest income |
|
|
3,586 |
|
|
|
3,680 |
|
|
|
4,295 |
|
|
(2.6 |
) |
|
(16.5 |
) |
Noninterest expense |
|
|
12,157 |
|
|
|
11,983 |
|
|
|
11,908 |
|
|
1.5 |
|
|
2.1 |
|
Income tax expense |
|
|
2,037 |
|
|
|
2,125 |
|
|
|
3,083 |
|
|
(4.1 |
) |
|
(33.9 |
) |
Net income |
|
|
5,226 |
|
|
|
5,172 |
|
|
|
7,534 |
|
|
1.0 |
|
|
(30.6 |
) |
Diluted earnings per share |
|
|
0.34 |
|
|
|
0.34 |
|
|
|
0.48 |
|
|
— |
|
|
(29.2 |
) |
Selected Balance Sheet Data: |
|
|
|
|
|
|
|
|
|
|
||||||||
Gross loans |
|
$ |
1,804,987 |
|
|
$ |
1,765,845 |
|
|
$ |
1,692,485 |
|
|
2.2 |
% |
|
6.6 |
% |
Total deposits |
|
|
1,895,411 |
|
|
|
1,807,558 |
|
|
|
1,904,818 |
|
|
4.9 |
|
|
(0.5 |
) |
Total assets |
|
|
2,234,520 |
|
|
|
2,147,730 |
|
|
|
2,170,594 |
|
|
4.0 |
|
|
2.9 |
|
Average loans(1) |
|
|
1,808,932 |
|
|
|
1,787,540 |
|
|
|
1,725,392 |
|
|
1.2 |
|
|
4.8 |
|
Average deposits |
|
|
1,836,331 |
|
|
|
1,813,411 |
|
|
|
1,867,684 |
|
|
1.3 |
|
|
(1.7 |
) |
Credit Quality: |
|
|
|
|
|
|
|
|
|
|
||||||||
Nonperforming loans |
|
$ |
4,343 |
|
|
$ |
6,082 |
|
|
$ |
2,504 |
|
|
(28.6 |
)% |
|
73.4 |
% |
Nonperforming loans to gross loans |
|
|
0.24 |
% |
|
|
0.34 |
% |
|
|
0.15 |
% |
|
(0.10 |
) |
|
0.09 |
|
Criticized loans(2) to gross loans |
|
|
0.64 |
|
|
|
0.76 |
|
|
|
0.34 |
|
|
(0.12 |
) |
|
0.30 |
|
Net charge-offs(3) to average gross loans(1) |
|
|
0.01 |
|
|
|
0.04 |
|
|
|
0.02 |
|
|
(0.03 |
) |
|
(0.01 |
) |
Allowance for credit losses to gross loans |
|
|
1.23 |
|
|
|
1.25 |
|
|
|
1.23 |
|
|
(0.02 |
) |
|
— |
|
Allowance for credit losses to nonperforming loans |
|
|
510 |
|
|
|
362 |
|
|
|
831 |
|
|
148.00 |
|
|
(321.00 |
) |
Financial Ratios: |
|
|
|
|
|
|
|
|
|
|
||||||||
Return on average assets(3) |
|
|
0.96 |
% |
|
|
0.96 |
% |
|
|
1.43 |
% |
|
— |
% |
|
(0.47 |
)% |
Return on average equity(3) |
|
|
10.83 |
|
|
|
11.18 |
|
|
|
16.82 |
|
|
(0.35 |
) |
|
(5.99 |
) |
Net interest margin(3) |
|
|
3.06 |
|
|
|
3.12 |
|
|
|
3.57 |
|
|
(0.06 |
) |
|
(0.51 |
) |
Efficiency ratio(4) |
|
|
62.14 |
|
|
|
60.19 |
|
|
|
53.67 |
|
|
1.95 |
|
|
8.47 |
|
Common equity tier 1 capital ratio |
|
|
12.34 |
|
|
|
12.52 |
|
|
|
12.06 |
|
|
(0.18 |
) |
|
0.28 |
|
Leverage ratio |
|
|
9.65 |
|
|
|
9.57 |
|
|
|
9.43 |
|
|
0.08 |
|
|
0.22 |
|
Book value per common share |
|
$ |
13.00 |
|
|
$ |
12.84 |
|
|
$ |
12.02 |
|
|
1.2 |
|
|
8.2 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
(1) |
Includes loans held for sale. |
|
(2) |
Includes special mention, substandard, doubtful, and loss categories. |
|
(3) |
Annualized. |
|
(4) |
Represents noninterest expense divided by the sum of net interest income and noninterest income. |
INCOME STATEMENT HIGHLIGHTS
Net Interest Income and Net Interest Margin
|
|
|
|
|
|
|
|
|
|
|
||||||||
($ in thousands) |
|
For the Three Months Ended |
|
% Change 1Q2024 vs. |
||||||||||||||
|
1Q2024 |
|
4Q2023 |
|
1Q2023 |
|
4Q2023 |
|
1Q2023 |
|||||||||
Interest Income |
|
|
|
|
|
|
|
|
|
|
||||||||
Interest income |
|
$ |
32,913 |
|
$ |
31,783 |
|
$ |
28,594 |
|
3.6 |
% |
|
15.1 |
% |
|||
Interest expense |
|
|
16,934 |
|
|
|
15,553 |
|
|
|
10,702 |
|
|
8.9 |
|
|
58.2 |
|
Net interest income |
|
$ |
15,979 |
|
|
$ |
16,230 |
|
|
$ |
17,892 |
|
|
(1.5 |
)% |
|
(10.7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
($ in thousands) |
|
For the Three Months Ended |
|||||||||||||||||||||||||||||||
|
1Q2024 |
|
4Q2023 |
|
1Q2023 |
||||||||||||||||||||||||||||
|
Average
|
|
Interest
|
|
Yield/
|
|
Average
|
|
Interest
|
|
Yield/
|
|
Average
|
|
Interest
|
|
Yield/
|
||||||||||||||||
Interest-earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Loans |
|
$ |
1,808,932 |
|
$ |
30,142 |
|
6.69 |
% |
|
$ |
1,787,540 |
|
$ |
28,914 |
|
6.43 |
% |
|
$ |
1,725,392 |
|
$ |
26,011 |
|
6.10 |
% |
||||||
Total interest-earning assets |
|
|
2,089,627 |
|
|
|
32,913 |
|
|
6.32 |
|
|
|
2,071,613 |
|
|
|
31,783 |
|
|
6.10 |
|
|
|
2,022,146 |
|
|
|
28,594 |
|
|
5.71 |
|
Interest-bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing deposits |
|
|
1,321,828 |
|
|
|
15,675 |
|
|
4.77 |
|
|
|
1,243,446 |
|
|
|
14,127 |
|
|
4.51 |
|
|
|
1,196,194 |
|
|
|
10,382 |
|
|
3.52 |
|
Total interest-bearing liabilities |
|
|
1,430,509 |
|
|
|
16,934 |
|
|
4.76 |
|
|
|
1,362,210 |
|
|
|
15,553 |
|
|
4.53 |
|
|
|
1,222,362 |
|
|
|
10,702 |
|
|
3.55 |
|
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net interest income / interest rate spreads |
|
|
|
|
15,979 |
|
|
1.56 |
|
|
|
|
|
16,230 |
|
|
1.57 |
|
|
|
|
|
17,892 |
|
|
2.16 |
|
||||||
Net interest margin |
|
|
|
|
|
3.06 |
|
|
|
|
|
|
3.12 |
|
|
|
|
|
|
3.57 |
|
||||||||||||
Total deposits / cost of deposits |
|
|
1,836,331 |
|
|
|
15,675 |
|
|
3.43 |
|
|
|
1,813,411 |
|
|
|
14,127 |
|
|
3.09 |
|
|
|
1,867,684 |
|
|
|
10,382 |
|
|
2.25 |
|
Total funding liabilities / cost of funds |
|
|
1,945,012 |
|
|
|
16,934 |
|
|
3.50 |
|
|
|
1,932,175 |
|
|
|
15,553 |
|
|
3.19 |
|
|
|
1,893,852 |
|
|
|
10,702 |
|
|
2.29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
(1) |
Annualized. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
($ in thousands) |
|
For the Three Months Ended |
|
Yield Change 1Q2024
|
|||||||||||||||||||||||
|
1Q2024 |
|
4Q2023 |
|
1Q2023 |
|
|||||||||||||||||||||
|
Interest
|
|
Yield(1) |
|
Interest
|
|
Yield(1) |
|
Interest
|
|
Yield(1) |
|
4Q2023 |
|
1Q2023 |
||||||||||||
Loan Yield Component: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Contractual interest rate |
|
$ |
28,877 |
|
|
6.41 |
% |
|
$ |
28,596 |
|
|
6.36 |
% |
|
$ |
25,477 |
|
|
5.97 |
% |
|
0.05 |
% |
|
0.44 |
% |
SBA loan discount accretion |
|
|
881 |
|
|
0.20 |
|
|
|
960 |
|
|
0.21 |
|
|
|
974 |
|
|
0.23 |
|
|
(0.01 |
) |
|
(0.03 |
) |
Amortization of net deferred fees |
|
|
54 |
|
|
0.01 |
|
|
|
(67 |
) |
|
(0.01 |
) |
|
|
79 |
|
|
0.02 |
|
|
0.02 |
|
|
(0.01 |
) |
Amortization of premium |
|
|
(428 |
) |
|
(0.10 |
) |
|
|
(423 |
) |
|
(0.09 |
) |
|
|
(392 |
) |
|
(0.09 |
) |
|
(0.01 |
) |
|
(0.01 |
) |
Net interest recognized on nonaccrual loans |
|
|
492 |
|
|
0.11 |
|
|
|
(345 |
) |
|
(0.08 |
) |
|
|
(243 |
) |
|
(0.06 |
) |
|
0.19 |
|
|
0.17 |
|
Prepayment penalties(2) and other fees |
|
|
266 |
|
|
0.06 |
|
|
|
193 |
|
|
0.04 |
|
|
|
116 |
|
|
0.03 |
|
|
0.02 |
|
|
0.03 |
|
Yield on loans |
|
$ |
30,142 |
|
|
6.69 |
% |
|
$ |
28,914 |
|
|
6.43 |
% |
|
$ |
26,011 |
|
|
6.10 |
% |
|
0.26 |
% |
|
0.59 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
(1) |
Annualized. |
|
(2) |
Prepayment penalty income of $115 thousand, $43 thousand and $3 thousand for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023, respectively, was from Commercial Real Estate (“CRE”) and Commercial and Industrial (“C&I”) loans. |
First Quarter 2024 vs. Fourth Quarter 2023
Net interest income decreased $251 thousand, or 1.5%, primarily due to higher interest expense on deposits, partially offset by higher interest income on loans. Net interest margin was 3.06%, a decrease of 6 basis points from 3.12%.
- A $1.5 million increase in interest expense on interest-bearing deposits was primarily due to a $78.4 million, or 6.3%, increase in average balance.
- A $1.2 million increase in interest income on loans was primarily due to a $21.4 million, or 1.2%, increase in average balance and a $837 thousand increase in net interest recognized on nonaccrual loans.
First Quarter 2024 vs. First Quarter 2023
Net interest income decreased $1.9 million, or 10.7%, primarily due to higher interest expense on deposits and borrowings, partially offset by higher interest income on loans as our deposit and borrowing costs repriced more quickly than our interest-earning assets. Net interest margin was 3.06%, a decrease of 51 basis points from 3.57%.
- A $5.3 million increase in interest expense on interest-bearing deposits was primarily due to a $125.6 million, or 10.5%, increase in average balance and a 125 basis point increase in average cost driven by the Federal Reserve’s rate increases.
- A $939 thousand increase in interest expense on borrowings was primarily due to a $82.5 million, or 315.3%, increase in average balance.
- A $4.1 million increase in interest income on loans was primarily due to a $83.5 million, or 4.8%, increase in average balance and a 59 basis point increase in average yield as a result of the Federal Reserve’s rate increases.
Provision for Credit Losses
|
|
|
|
|
|
|
||||||
|
|
For the Three Months Ended |
||||||||||
($ in thousands) |
|
1Q2024 |
|
4Q2023 |
|
1Q2023 |
||||||
Provision for (reversal of) credit losses on loans |
|
$ |
193 |
|
|
$ |
537 |
|
$ |
(258 |
) |
|
Provision for (reversal of) credit losses on off-balance sheet exposure |
|
|
(48 |
) |
|
|
93 |
|
|
|
(80 |
) |
Total provision for (reversal of) credit losses |
|
$ |
145 |
|
|
$ |
630 |
|
|
$ |
(338 |
) |
|
|
|
|
|
|
|
||||||
First Quarter 2024 vs. Fourth Quarter 2023
The Company recorded a $145 thousand provision for credit losses, a decrease of $485 thousand, compared with a $630 thousand provision for credit losses.
Provision for credit losses on loans was $193 thousand, primarily due to a $1.8 million increase in the quantitative general reserve, mostly offset by a $1.7 million decrease in the qualitative reserve. The increase in the quantitative reserve was due to the increase in the average life of home mortgage loans because of the slower prepayment rate based on the 2-year look back period. The decrease in the qualitative reserve was due to noticeable improvements in various asset quality metrics and improving economic and business conditions.
First Quarter 2024 vs. First Quarter 2023
The Company recorded a $145 thousand provision for credit losses, a decrease of $483 thousand, compared with a $338 thousand reversal of credit losses.
Noninterest Income
|
|
|
|
|
|
|
|
|
|
|
||||||||
($ in thousands) |
|
For the Three Months Ended |
|
% Change 1Q2024 vs. |
||||||||||||||
|
1Q2024 |
|
4Q2023 |
|
1Q2023 |
|
4Q2023 |
|
1Q2023 |
|||||||||
Noninterest Income |
|
|
|
|
|
|
|
|
|
|
||||||||
Service charges on deposits |
|
$ |
612 |
|
$ |
557 |
|
$ |
418 |
|
9.9 |
% |
|
46.4 |
% |
|||
Loan servicing fees, net of amortization |
|
|
772 |
|
|
|
540 |
|
|
|
846 |
|
|
43.0 |
|
|
(8.7 |
) |
Gain on sale of loans |
|
|
1,703 |
|
|
|
1,996 |
|
|
|
2,570 |
|
|
(14.7 |
) |
|
(33.7 |
) |
Other income |
|
|
499 |
|
|
|
587 |
|
|
|
461 |
|
|
(15.0 |
) |
|
8.2 |
|
Total noninterest income |
|
$ |
3,586 |
|
|
$ |
3,680 |
|
|
$ |
4,295 |
|
|
(2.6 |
)% |
|
(16.5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
||||||||
First Quarter 2024 vs. Fourth Quarter 2023
Noninterest income decreased $94 thousand, or 2.6%, primarily due to lower gain on sale of loans, partially offset by higher loan servicing fee.
- Gain on sale of loans was $1.7 million, a decrease of $293 thousand from $2.0 million, primarily due to a lower Small Business Administration (“SBA”) loan sold amount partially offset by a higher average premium on sales. The Bank sold $24.8 million in SBA loans at an average premium rate of 8.33%, compared to the sale of $40.1 million at an average premium rate of 5.99%.
- Loan servicing fees, net of amortization, was $772 thousand, an increase of $232 thousand from $540 thousand, primarily due to a decrease in servicing fee amortization driven by lower loan payoffs in loan servicing portfolio.
First Quarter 2024 vs. First Quarter 2023
Noninterest income decreased $709 thousand, or 16.5%, primarily due to a lower gain on sale of loans, partially offset by higher service charges on deposits.
- Gain on sale of loans was $1.7 million, a decrease of $867 thousand from $2.6 million, primarily due to a lower SBA loan sold amount. The Bank sold $24.8 million in SBA loans at an average premium rate of 8.33%, compared to the sale of $44.7 million at an average premium rate of 7.33%.
- Service charges on deposits was $612 thousand, and an increase of $194 thousand from $418 thousand, primarily due to an increase in deposit analysis fees from an increase in the number of analysis accounts.
Noninterest Expense
|
|
|
|
|
|
|
|
|
|
|
||||||||
($ in thousands) |
|
For the Three Months Ended |
|
% Change 1Q2024 vs. |
||||||||||||||
|
1Q2024 |
|
4Q2023 |
|
1Q2023 |
|
4Q2023 |
|
1Q2023 |
|||||||||
Noninterest Expense |
|
|
|
|
|
|
|
|
|
|
||||||||
Salaries and employee benefits |
|
$ |
7,841 |
|
$ |
7,646 |
|
$ |
7,252 |
|
2.6 |
% |
|
8.1 |
% |
|||
Occupancy and equipment |
|
|
1,655 |
|
|
|
1,616 |
|
|
|
1,570 |
|
|
2.4 |
|
|
5.4 |
|
Data processing and communication |
|
|
487 |
|
|
|
644 |
|
|
|
550 |
|
|
(24.4 |
) |
|
(11.5 |
) |
Professional fees |
|
|
395 |
|
|
|
391 |
|
|
|
359 |
|
|
1.0 |
|
|
10.0 |
|
FDIC insurance and regulatory assessments |
|
|
374 |
|
|
|
237 |
|
|
|
467 |
|
|
57.8 |
|
|
(19.9 |
) |
Promotion and advertising |
|
|
149 |
|
|
|
86 |
|
|
|
162 |
|
|
73.3 |
|
|
(8.0 |
) |
Directors’ fees |
|
|
157 |
|
|
|
145 |
|
|
|
161 |
|
|
8.3 |
|
|
(2.5 |
) |
Foundation donation and other contributions |
|
|
540 |
|
|
|
524 |
|
|
|
753 |
|
|
3.1 |
|
|
(28.3 |
) |
Other expenses |
|
|
559 |
|
|
|
694 |
|
|
|
634 |
|
|
(19.5 |
) |
|
(11.8 |
) |
Total noninterest expense |
|
$ |
12,157 |
|
|
$ |
11,983 |
|
|
$ |
11,908 |
|
|
1.5 |
% |
|
2.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||
First Quarter 2024 vs. Fourth Quarter 2023
Noninterest expense increased $174 thousand, or 1.5%, primarily due to higher salaries and employee benefits, and FDIC insurance and regulatory assessments, partially offset by lower data processing and communication and other expenses.
- Salaries and employee benefits increased $195 thousand, primarily due to increases in employer payroll taxes and employee vacation accruals, partially offset by lower employee incentive accruals.
- FDIC insurance and regulatory assessments increased $137 thousand, primarily due to a lower expense in the fourth quarter of 2023 as a result of an accrual adjustment.
- Data processing and communication decreased $157 thousand, primarily due to an accrual adjustment for a credit received on data processing fees in the first quarter of 2024.
First Quarter 2024 vs. First Quarter 2023
Noninterest expense increased $249 thousand, or 2.1%, primarily due to higher salaries and employee benefits, partially offset by lower foundation donation and other contributions.
- Salaries and employee benefits increased $589 thousand, primarily due to an increase from employee salary adjustments in 2023 and an increase in employee health insurance.
- Foundation donations and other contributions decreased $213 thousand, primarily due to a lower donation accrual for Open Stewardship as a result of lower net income.
Income Tax Expense
First Quarter 2024 vs. Fourth Quarter 2023
Income tax expense was $2.0 million and the effective tax rate was 28.1%, compared to income tax expense of $2.1 million and the effective rate of 29.1%. The decrease in the effective tax rate was primarily due to an increased tax benefits from an increase in low income housing tax credit investments.
First Quarter 2024 vs. First Quarter 2023
Income tax expense was $2.0 million and the effective tax rate was 28.1%, compared to income tax expense of $3.1 million and an effective rate of 29.0%. The decrease in the effective tax rate was primarily due to an increased tax benefits from an increase in low income housing tax credit investments.
BALANCE SHEET HIGHLIGHTS
Loans
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
As of |
|
% Change 1Q2024 vs. |
|||||||||||||||
| ($ in thousands) |
|
1Q2024 |
|
4Q2023 |
|
1Q2023 |
|
4Q2023 |
|
1Q2023 |
||||||||
CRE loans |
|
$ |
905,534 |
|
$ |
885,585 |
|
$ |
833,615 |
|
2.3 |
% |
|
8.6 |
% |
|||
SBA loans |
|
|
247,550 |
|
|
|
239,692 |
|
|
|
238,994 |
|
|
3.3 |
|
|
3.6 |
|
C&I loans |
|
|
147,508 |
|
|
|
120,970 |
|
|
|
117,841 |
|
|
21.9 |
|
|
25.2 |
|
Home mortgage loans |
|
|
502,995 |
|
|
|
518,024 |
|
|
|
500,635 |
|
|
(2.9 |
) |
|
0.5 |
|
Consumer & other loans |
|
|
1,400 |
|
|
|
1,574 |
|
|
|
1,400 |
|
|
(11.1 |
) |
|
— |
|
Gross loans |
|
$ |
1,804,987 |
|
|
$ |
1,765,845 |
|
|
$ |
1,692,485 |
|
|
2.2 |
% |
|
6.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||
The following table presents new loan originations based on loan commitment amounts for the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
For the Three Months Ended |
|
% Change 1Q2024 vs. |
|||||||||||||||
| ($ in thousands) |
|
1Q2024 |
|
4Q2023 |
|
1Q2023 |
|
4Q2023 |
|
1Q2023 |
||||||||
CRE loans |
|
$ |
44,596 |
|
$ |
15,885 |
|
$ |
24,200 |
|
180.7 |
% |
|
84.3 |
% |
|||
SBA loans |
|
|
52,379 |
|
|
|
51,855 |
|
|
|
16,258 |
|
|
1.0 |
|
|
222.2 |
|
C&I loans |
|
|
23,775 |
|
|
|
15,270 |
|
|
|
7,720 |
|
|
55.7 |
|
|
208.0 |
|
Home mortgage loans |
|
|
2,478 |
|
|
|
12,417 |
|
|
|
20,617 |
|
|
(80.0 |
) |
|
(88.0 |
) |
Consumer & other loans |
|
|
— |
|
|
|
1,500 |
|
|
|
— |
|
|
(100.0 |
) |
|
— |
|
Gross loans |
|
$ |
123,228 |
|
|
$ |
96,927 |
|
|
$ |
68,795 |
|
|
27.1 |
% |
|
79.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||
The following table presents changes in gross loans by loan activity for the periods indicated:
|
|
|
|
|
|
|
||||||
|
For the Three Months Ended |
|||||||||||
| ($ in thousands) |
|
1Q2024 |
|
4Q2023 |
|
1Q2023 |
||||||
Loan Activities: |
|
|
|
|
|
|
||||||
Gross loans, beginning |
|
$ |
1,765,845 |
|
|
$ |
1,759,525 |
|
|
$ |
1,678,292 |
|
New originations |
|
|
123,228 |
|
|
|
96,927 |
|
|
|
68,795 |
|
Net line advances |
|
|
15,313 |
|
|
|
(7,350 |
) |
|
|
10,356 |
|
Purchases |
|
|
— |
|
|
|
2,371 |
|
|
|
12,142 |
|
Sales |
|
|
(32,106 |
) |
|
|
(40,122 |
) |
|
|
(45,021 |
) |
Paydowns |
|
|
(24,557 |
) |
|
|
(19,901 |
) |
|
|
(40,190 |
) |
Payoffs |
|
|
(28,539 |
) |
|
|
(23,590 |
) |
|
|
(28,326 |
) |
PPP payoffs |
|
|
— |
|
|
|
— |
|
|
|
(200 |
) |
Decrease (increase) in loans held for sale |
|
|
(14,280 |
) |
|
|
(1,795 |
) |
|
|
36,802 |
|
Other |
|
|
83 |
|
|
|
(220 |
) |
|
|
(165 |
) |
Total |
|
|
39,142 |
|
|
|
6,320 |
|
|
|
14,193 |
|
Gross loans, ending |
|
$ |
1,804,987 |
|
|
$ |
1,765,845 |
|
|
$ |
1,692,485 |
|
|
|
|
|
|
|
|
||||||
As of March 31, 2024 vs. December 31, 2023
Gross loans were $1.80 billion as of March 31, 2024, up $39.1 million, from December 31, 2023, primarily due to new loan originations, partially offset by loan sales, payoffs and paydowns.
New loan originations, loan sales, and loan payoffs and paydowns were $123.2 million $32.1 million and $53.1 million, respectively, for the first quarter of 2024, compared with $96.9 million, $40.1 million and $43.5 million, respectively, for the fourth quarter of 2023.
As of March 31, 2024 vs. March 31, 2023
Gross loans were $1.80 billion as of March 31, 2024, up $112.5 million, from March 31, 2023, primarily due to new loan originations of $428.9 million and loan purchases of $15.5 million, primarily offset by loan sales of $132.4 million and loan payoffs and paydowns of $198.2 million.
The following table presents the composition of gross loans by interest rate type accompanied with the weighted average contractual rates as of the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
As of |
|||||||||||||||||
|
1Q2024 |
|
4Q2023 |
|
1Q2023 |
|||||||||||||
| ($ in thousands) |
|
% |
|
Rate |
|
% |
|
Rate |
|
% |
|
Rate |
||||||
Fixed rate |
|
35.1 |
% |
|
5.17 |
% |
|
35.1 |
% |
|
5.07 |
% |
|
36.5 |
% |
|
4.76 |
% |
Hybrid rate |
|
32.8 |
|
|
5.22 |
|
|
33.9 |
|
|
5.15 |
|
|
34.2 |
|
|
4.94 |
|
Variable rate |
|
32.1 |
|
|
9.16 |
|
|
31.0 |
|
|
9.15 |
|
|
29.3 |
|
|
8.76 |
|
Gross loans |
|
100.0 |
% |
|
6.47 |
% |
|
100.0 |
% |
|
6.35 |
% |
|
100.0 |
% |
|
5.99 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
The following table presents the maturity of gross loans by interest rate type accompanied with the weighted average contractual rates for the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
As of March 31, 2024 |
|||||||||||||||||||||||||||
|
Within One Year |
|
One Year Through
|
|
After Five Years |
|
Total |
|||||||||||||||||||||
| ($ in thousands) |
|
Amount |
|
Rate |
|
Amount |
|
Rate |
|
Amount |
|
Rate |
|
Amount |
|
Rate |
||||||||||||
Fixed rate |
|
$ |
125,369 |
|
5.81 |
% |
|
$ |
282,814 |
|
4.93 |
% |
|
$ |
226,332 |
|
5.11 |
% |
|
$ |
634,515 |
|
5.17 |
% |
||||
Hybrid rate |
|
|
— |
|
|
— |
|
|
|
138,336 |
|
|
4.17 |
|
|
|
453,281 |
|
|
5.54 |
|
|
|
591,617 |
|
|
5.22 |
|
Variable rate |
|
|
113,184 |
|
|
8.79 |
|
|
|
130,126 |
|
|
9.02 |
|
|
|
335,545 |
|
|
9.34 |
|
|
|
578,855 |
|
|
9.16 |
|
Gross loans |
|
$ |
238,553 |
|
|
7.22 |
% |
|
$ |
551,276 |
|
|
5.71 |
% |
|
$ |
1,015,158 |
|
|
6.70 |
% |
|
$ |
1,804,987 |
|
|
6.47 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Allowance for Credit Losses
The Company adopted the Current Expected Credit Losses (“CECL”) accounting standard effective as of January 1, 2023 under a modified retrospective approach. The adoption resulted in a $1.9 million increase to the allowance for credit losses on loans, a $184 thousand increase to the allowance for credit losses on off-balance sheet exposure, a $624 thousand increase to deferred tax assets, and a $1.5 million charge to retained earnings.
The following table presents allowance for credit losses and provision for credit losses as of and for the periods presented:
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
As of and For the Three Months Ended |
|
% Change 1Q2024 vs. |
|||||||||||||||
| ($ in thousands) |
|
1Q2024 |
|
4Q2023 |
|
1Q2023 |
|
4Q2023 |
|
1Q2023 |
||||||||
Allowance for credit losses on loans, beginning |
|
$ |
21,993 |
|
|
$ |
21,617 |
|
|
$ |
19,241 |
|
|
1.7 |
% |
|
14.3 |
% |
Impact of CECL adoption |
|
|
— |
|
|
|
— |
|
|
|
1,924 |
|
|
n/m |
|
|
n/m |
|
Provision for (reversal of) credit losses |
|
|
193 |
|
|
|
537 |
|
|
|
(258 |
) |
|
(64.1 |
) |
|
(174.8 |
) |
Gross charge-offs |
|
|
(68 |
) |
|
|
(236 |
) |
|
|
(116 |
) |
|
(71.2 |
) |
|
(41.4 |
) |
Gross recoveries |
|
|
11 |
|
|
|
75 |
|
|
|
23 |
|
|
(85.3 |
) |
|
(52.2 |
) |
Net charge-offs |
|
|
(57 |
) |
|
|
(161 |
) |
|
|
(93 |
) |
|
(64.6 |
) |
|
(38.7 |
) |
Allowance for credit losses on loans, ending |
|
$ |
22,129 |
|
|
$ |
21,993 |
|
|
$ |
20,814 |
|
|
0.6 |
% |
|
6.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Allowance for credit losses on off-balance sheet exposure, beginning |
|
$ |
516 |
|
|
$ |
423 |
|
|
$ |
263 |
|
|
22.0 |
% |
|
96.2 |
% |
Impact of CECL adoption |
|
|
— |
|
|
|
— |
|
|
|
184 |
|
|
n/m |
|
|
n/m |
|
Provision for (reversal of) credit losses |
|
|
(48 |
) |
|
|
93 |
|
|
|
(80 |
) |
|
(151.6 |
) |
|
(40.0 |
) |
Allowance for credit losses on off-balance sheet exposure, ending |
|
$ |
468 |
|
|
$ |
516 |
|
|
$ |
367 |
|
|
(9.3 |
)% |
|
27.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Asset Quality
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
As of and For the Three Months Ended |
|
Change 1Q2024 vs. |
|||||||||||||||
| ($ in thousands) |
|
1Q2024 |
|
4Q2023 |
|
1Q2023 |
|
4Q2023 |
|
1Q2023 |
||||||||
Loans 30-89 days past due and still accruing |
|
$ |
3,904 |
|
|
$ |
9,607 |
|
|
$ |
4,866 |
|
|
(59.4 |
)% |
|
(19.8 |
)% |
As a % of gross loans |
|
|
0.22 |
% |
|
|
0.54 |
% |
|
|
0.29 |
% |
|
(0.32 |
) |
|
(0.07 |
) |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Nonperforming loans(1) |
|
$ |
4,343 |
|
|
$ |
6,082 |
|
|
$ |
2,504 |
|
|
(28.6 |
)% |
|
73.4 |
% |
Nonperforming assets(1) |
|
|
5,580 |
|
|
|
6,082 |
|
|
|
2,504 |
|
|
(8.3 |
) |
|
122.8 |
|
Nonperforming loans to gross loans |
|
|
0.24 |
% |
|
|
0.34 |
% |
|
|
0.15 |
% |
|
(0.10 |
) |
|
0.09 |
|
Nonperforming assets to total assets |
|
|
0.25 |
% |
|
|
0.28 |
% |
|
|
0.12 |
% |
|
(0.03 |
) |
|
0.13 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Criticized loans(1)(2) |
|
$ |
11,564 |
|
|
$ |
13,349 |
|
|
$ |
5,772 |
|
|
(13.4 |
)% |
|
100.3 |
% |
Criticized loans to gross loans |
|
|
0.64 |
% |
|
|
0.76 |
% |
|
|
0.34 |
% |
|
(0.12 |
) |
|
0.30 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Allowance for credit losses ratios: |
|
|
|
|
|
|
|
|
|
|
||||||||
As a % of gross loans |
|
|
1.23 |
% |
|
|
1.25 |
% |
|
|
1.23 |
% |
|
(0.02 |
)% |
|
— |
% |
As a % of nonperforming loans |
|
|
510 |
|
|
|
362 |
|
|
|
831 |
|
|
148 |
|
|
(321 |
) |
As a % of nonperforming assets |
|
|
397 |
|
|
|
362 |
|
|
|
831 |
|
|
35 |
|
|
(434 |
) |
As a % of criticized loans |
|
|
191 |
|
|
|
165 |
|
|
|
361 |
|
|
26 |
|
|
(170 |
) |
Net charge-offs(3) to average gross loans(4) |
|
|
0.01 |
|
|
|
0.04 |
|
|
|
0.02 |
|
|
(0.03 |
) |
|
(0.01 |
) |
|
|
|
|
|
|
|
|
|
|
|
||||||||
| (1) | Excludes the guaranteed portion of SBA loans that are in liquidation totaling $3.1 million, $2.0 million and $1.9 million as of March 31, 2024, December 31, 2023 and March 31, 2023, respectively. |
|
(2) |
Consists of special mention, substandard, doubtful and loss categories. |
|
(3) |
Annualized. |
|
(4) |
Includes loans held for sale. |
Overall, the Bank continued to maintain low levels of nonperforming loans and net charge-offs. Our allowance remained strong with an allowance to gross loans ratio of 1.23%.
- Loans 30-89 days past due and still accruing were $3.9 million or 0.22% of gross loans as of March 31, 2024, compared with $9.6 million or 0.54% as of December 31, 2023. Several past due home mortgage loans were paid off through voluntary sale and several home mortgage and SBA loans were brought current.
- Nonperforming loans were $4.3 million or 0.24% of gross loans as of March 31, 2024, compared with $6.1 million or 0.34% as of December 31, 2023. Several escrows on the nonperforming home mortgage loans were closed during the quarter with full payoffs.
- Nonperforming assets were $5.6 million or 0.25% of total assets as of March 31, 2024, compared with $6.1 million or 0.28% as of December 31, 2023. Other Real Estate Owned (“OREO”) was $1.2 million as of March 31, 2024, which is secured by a mix-use property in Los Angeles Koreatown with 90% guaranteed by SBA. We are in receipt of a few written offers above the OREO balance and negotiating the terms of the offer.
- Criticized loans were $11.6 million or 0.64% of gross loans as of March 31, 2024, compared with $13.3 million or 0.76% as of December 31, 2023. The improvement was due to the payoffs of several nonperforming home mortgage loans.
- Net charge-offs were $57 thousand or 0.01% of average loans in the first quarter of 2024, compared to net charge-offs of $161 thousand, or 0.04% of average loans in the fourth quarter of 2023 and of $93 thousand, or 0.02% of average loans in the first quarter of 2023. The charge-off in the first quarter of 2024 was the reversal of the accrued interest on three loans totaling $519 thousand that were placed on nonaccrual during the same quarter.
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
As of |
|
% Change 1Q2024 vs. |
||||||||||||||||||||||||
|
1Q2024 |
|
4Q2023 |
|
1Q2023 |
|
|||||||||||||||||||||
| ($ in thousands) |
|
Amount |
|
% |
|
Amount |
|
% |
|
Amount |
|
% |
|
4Q2023 |
|
1Q2023 |
|||||||||||
Noninterest-bearing deposits |
|
$ |
539,396 |
|
28.5 |
% |
|
$ |
522,751 |
|
28.9 |
% |
|
$ |
643,902 |
|
33.8 |
% |
|
3.2 |
% |
|
(16.2 |
)% |
|||
Money market deposits and others |
|
|
327,718 |
|
|
17.3 |
|
|
|
399,018 |
|
|
22.1 |
|
|
|
436,796 |
|
|
22.9 |
|
|
(17.9 |
) |
|
(25.0 |
) |
Time deposits |
|
|
1,028,297 |
|
|
54.2 |
|
|
|
885,789 |
|
|
49.0 |
|
|
|
824,120 |
|
|
43.3 |
|
|
16.1 |
|
|
24.8 |
|
Total deposits |
|
$ |
1,895,411 |
|
|
100.0 |
% |
|
$ |
1,807,558 |
|
|
100.0 |
% |
|
$ |
1,904,818 |
|
|
100.0 |
% |
|
4.9 |
% |
|
(0.5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Estimated uninsured deposits |
|
$ |
1,248,644 |
|
|
65.9 |
% |
|
$ |
1,156,270 |
|
|
64.0 |
% |
|
$ |
900,579 |
|
|
47.3 |
% |
|
8.0 |
% |
|
38.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
As of March 31, 2024 vs. December 31, 2023
Total deposits were $1.90 billion as of March 31, 2024, up $87.9 million from December 31, 2023, primarily due to increases of $142.5 million in time deposits and $16.6 million in noninterest-bearing deposit, offset by a $71.3 million decrease in money market deposits. Noninterest-bearing deposits, as a percentage of total deposits, decreased to 28.5% from 28.9%. The composition shift to time deposits was primarily due to customers’ continued preference for high-rate deposit products driven by the Federal Reserve’s rate increases.
As of March 31, 2024 vs. March 31, 2023
Total deposits were $1.90 billion as of March 31, 2024, down $9.4 million from March 31, 2023, primarily driven by decreases of $104.5 million in noninterest-bearing deposits and $109.1 million in money market deposits, offset by a $204.2 million increase in time deposits. The composition shift to time deposits was primarily due to customers’ preference for high-rate deposit products driven by market rate increases as a result of the Federal Reserve’s rate increases.
The following table sets forth the maturity of time deposits as of March 31, 2024:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
As of March 31, 2024 |
||||||||||||||||||||||
($ in thousands) |
|
Within
|
|
Three to
|
|
Six to Nine
|
|
Nine to
Months |
|
After
|
|
Total |
||||||||||||
Time deposits (more than $250) |
|
$ |
95,516 |
|
|
$ |
65,321 |
|
|
$ |
143,382 |
|
|
$ |
142,830 |
|
|
$ |
4,448 |
|
|
$ |
451,497 |
|
Time deposits ($250 or less) |
|
|
151,358 |
|
|
|
102,471 |
|
|
|
186,340 |
|
|
|
104,481 |
|
|
|
32,150 |
|
|
|
576,800 |
|
Total time deposits |
|
$ |
246,874 |
|
|
$ |
167,792 |
|
|
$ |
329,722 |
|
|
$ |
247,311 |
|
|
$ |
36,598 |
|
|
$ |
1,028,297 |
|
Weighted average rate |
|
|
4.97 |
% |
|
|
4.99 |
% |
|
|
5.18 |
% |
|
|
5.04 |
% |
|
|
4.25 |
% |
|
|
5.03 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
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) |
|
|
1Q2024 |
|
|
|
4Q2023 |
|
|
|
1Q2023 |
|
Liquidity Assets: |
|
|
|
|
|
|
||||||
Cash and cash equivalents |
|
$ |
139,246 |
|
|
$ |
91,216 |
|
|
$ |
181,509 |
|
Available-for-sale debt securities |
|
|
187,225 |
|
|
|
194,250 |
|
|
|
212,767 |
|
Liquid assets |
|
$ |
326,471 |
|
|
$ |
285,466 |
|
|
$ |
394,276 |
|
Liquid assets to total assets |
|
|
14.6 |
% |
|
|
13.3 |
% |
|
|
18.2 |
% |
|
|
|
|
|
|
|
||||||
Available borrowings: |
|
|
|
|
|
|
||||||
Federal Home Loan Bank—San Francisco |
|
$ |
331,917 |
|
|
$ |
363,615 |
|
|
$ |
406,500 |
|
Federal Reserve Bank |
|
|
185,913 |
|
|
|
182,989 |
|
|
|
174,284 |
|
Pacific Coast Bankers Bank |
|
|
50,000 |
|
|
|
50,000 |
|
|
|
50,000 |
|
Zions Bank |
|
|
25,000 |
|
|
|
25,000 |
|
|
|
25,000 |
|
First Horizon Bank |
|
|
25,000 |
|
|
|
25,000 |
|
|
|
24,950 |
|
Total available borrowings |
|
$ |
617,830 |
|
|
$ |
646,604 |
|
|
$ |
680,734 |
|
Total available borrowings to total assets |
|
|
27.6 |
% |
|
|
30.1 |
% |
|
|
31.4 |
% |
|
|
|
|
|
|
|
||||||
Liquid assets and available borrowings to total deposits |
|
|
49.8 |
% |
|
|
51.6 |
% |
|
|
56.4 |
% |
|
|
|
|
|
||||||||
Capital and Capital Ratios
On April 25, 2024, the Company’s Board of Directors declared a quarterly cash dividend of $0.12 per share of its common stock. The cash dividend is payable on or about May 23, 2024 to all shareholders of record as of the close of business on May 9, 2024. The payment of the dividend is based primarily on dividends from the Bank to the Company, and future dividends will depend on the Board’s assessment of the availability of capital levels to support the ongoing operating capital needs of both the Company and the Bank.
The Company also repurchased 49,697 shares of its common stock at an average price of $10.02 per share during the first quarter of 2024 under the stock repurchase program announced in August 2023. Since the announcement of the initial stock repurchase program in January 2019, the Company repurchased a total of 2,069,697 shares of its common stock at an average repurchase price of $8.63 per share through March 31, 2024.
|
|
|
|
|
|
|
|
|
||||
|
Basel III |
|||||||||||
|
OP Bancorp(1) |
|
Open Bank |
|
Minimum
|
|
Minimum
|
|||||
Risk-Based Capital Ratios: |
|
|
|
|
|
|
|
|
||||
Total risk-based capital ratio |
|
13.59 |
% |
|
13.53 |
% |
|
10.00 |
% |
|
10.50 |
% |
Tier 1 risk-based capital ratio |
|
12.34 |
|
|
12.28 |
|
|
8.00 |
|
|
8.50 |
|
Common equity tier 1 ratio |
|
12.34 |
|
|
12.28 |
|
|
6.50 |
|
|
7.00 |
|
Leverage ratio |
|
9.65 |
|
|
9.60 |
|
|
5.00 |
|
|
4.00 |
|
|
|
|
|
|
|
|
|
|
||||
(1) |
The capital requirements are only applicable to the Bank, and the Company's ratios are included for comparison purpose. |
|
(2) |
An additional 2.5% capital conservation buffer above the minimum capital ratios are required in order to avoid limitations on distributions, including dividend payments and certain discretionary bonuses to executive officers. |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Basel III |
|
Change 1Q2024 vs. |
|||||||||||||||
| OP Bancorp |
|
1Q2024 |
|
4Q2023 |
|
1Q2023 |
|
4Q2023 |
|
1Q2023 |
||||||||
Risk-Based Capital Ratios: |
|
|
|
|
|
|
|
|
|
|
||||||||
Total risk-based capital ratio |
|
|
13.59 |
% |
|
|
13.77 |
% |
|
|
13.27 |
% |
|
(0.18 |
)% |
|
0.32 |
% |
Tier 1 risk-based capital ratio |
|
|
12.34 |
|
|
|
12.52 |
|
|
|
12.06 |
|
|
(0.18 |
) |
|
0.28 |
|
Common equity tier 1 ratio |
|
|
12.34 |
|
|
|
12.52 |
|
|
|
12.06 |
|
|
(0.18 |
) |
|
0.28 |
|
Leverage ratio |
|
|
9.65 |
|
|
|
9.57 |
|
|
|
9.43 |
|
|
0.08 |
|
|
0.22 |
|
Risk-weighted Assets ($ in thousands) |
|
$ |
1,715,185 |
|
|
$ |
1,667,067 |
|
|
$ |
1,659,584 |
|
|
2.89 |
|
|
3.35 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
ABOUT OP BANCORP
OP Bancorp, the holding company for Open Bank (the “Bank”), is a California corporation whose common stock is quoted on the Nasdaq Global Market under the ticker symbol, “OPBK.” The Bank is engaged in the general commercial banking business in Los Angeles, Orange, and Santa Clara Counties in California, the Dallas metropolitan area in Texas, and Clark County in Nevada and is focused on serving the banking needs of small- and medium-sized businesses, professionals, and residents with a particular emphasis on Korean and other ethnic minority communities. The Bank currently operates eleven full-service branch offices in Downtown Los Angeles, Los Angeles Fashion District, Los Angeles Koreatown, Cerritos, Gardena, Buena Park, and Santa Clara, California, Carrollton, Texas and Las Vegas, Nevada. The Bank also has four loan production offices in Pleasanton, California, Atlanta, Georgia, Aurora, Colorado, and Lynnwood, Washington. The Bank commenced its operations on June 10, 2005 as First Standard Bank and changed its name to Open Bank in October 2010. Its headquarters is located at 1000 Wilshire Blvd., Suite 500, Los Angeles, California 90017. Phone 213.892.9999; www.myopenbank.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain matters set forth herein constitute “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, including forward-looking statements relating to the Company’s current business plans and expectations regarding future operating results. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from those projected. These risks and uncertainties, some of which are beyond our control, include, but are not limited to: the effects of substantial fluctuations in, and continuing elevated levels of, interest rates on our borrowers’ ability to perform in accordance with the terms of their loans and on our deposit customers’ expectation for higher rates on deposit products; cybersecurity risks, including the potential for the occurrence of successful cyberattacks and our ability to prevent and to mitigate the harms resulting from any such attacks; business and economic conditions, particularly those affecting the financial services industry and our primary market areas; risks of international conflict, terrorism, civil unrest and domestic instability; the continuing effects of inflation and monetary policies, particularly those relating to the decisions and indicators of intent expressed by the Federal Reserve Open Markets Committee, as those circumstances impact our operations and our current and prospective borrowers and depositors; our ability to balance deposit liabilities and liquidity sources (including our ability to reprice those instruments and balancing our borrowings and investments to keep pace with changing market conditions) so as to meet current and expected withdrawals while promoting strong earning capacity; our ability to manage our credit risk successfully and to assess, adjust and monitor the sufficiency of our allowance for credit losses; factors that can impact the performance of our loan portfolio, including real estate values and liquidity in our primary market areas, the financial health of our commercial borrowers, the success of construction projects that we finance, including any loans acquired in acquisition transactions; the impacts of credit quality on our earnings and the related effects of increases to the reserve on our net income; our ability effectively to execute our strategic plan and manage our growth; interest rate fluctuations, which could have an adverse effect on our profitability; external economic and/or market factors, such as changes in monetary and fiscal policies and laws, including inflation or deflation, changes in the demand for loans, and fluctuations in consumer spending, borrowing and savings habits, which may have an adverse impact on our financial condition; continued or increasing competition from other banks and from credit unions and non-bank financial services companies, many of which are subject to less restrictive or less costly regulations than we are; challenges arising from unsuccessful attempts to expand into new geographic markets, products, or services; practical and regulatory constraints on the ability of Open Bank to pay dividends to us; increased capital requirements imposed by banking regulators, which may require us to raise capital at a time when capital is not available on favorable terms or at all; a failure in the internal controls we have implemented to address the risks inherent to the business of banking; including internal controls that affect the reliability of our publicly reported financial statements; inaccuracies in our assumptions about future events, which could result in material differences between our financial projections and actual financial performance, particularly with respect to the effects of predictions of future economic conditions as those circumstances affect our estimates for the adequacy of our allowance for credit losses and the related provision expense; changes in our management personnel or our inability to retain motivate and hire qualified management personnel; disruptions, security breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems; disruptions, security breaches, or other adverse events affecting the third-party vendors who perform several of our critical processing functions; an inability to keep pace with the rate of technological advances due to a lack of resources to invest in new technologies; risks related to potential acquisitions; political developments, uncertainties or instability, catastrophic events, or natural disasters, such as earthquakes, fires, drought, pandemic diseases (such as the coronavirus) or extreme weather events, any of which may affect services we use or affect our customers, employees or third parties with which we conduct business; incremental costs and obligations associated with operating as a public company; the impact of any claims or legal actions to which we may be subject, including any effect on our reputation; compliance with governmental and regulatory requirements, including the Dodd-Frank Act and others relating to banking, consumer protection, securities and tax matters, and our ability to maintain licenses required in connection with commercial mortgage origination, sale and servicing operations; changes in federal tax law or policy; and our ability the manage the foregoing and other factors set forth in the Company’s public reports. We describe these and other risks that could affect our results in Item 1A. “Risk Factors,” of our latest Annual Report on Form 10-K for the year ended December 31, 2023 and in our other subsequent filings with the Securities and Exchange Commission.
CONSOLIDATED BALANCE SHEETS (unaudited)
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
As of |
|
% Change 1Q2024 vs. |
|||||||||||||||
| ($ in thousands) |
|
1Q2024 |
|
4Q2023 |
|
1Q2023 |
|
4Q2023 |
|
1Q2023 |
||||||||
Assets |
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and due from banks |
|
$ |
20,513 |
|
|
$ |
16,948 |
|
|
$ |
16,781 |
|
|
21.0 |
% |
|
22.2 |
% |
Interest-bearing deposits in other banks |
|
|
118,733 |
|
|
|
74,268 |
|
|
|
164,728 |
|
|
59.9 |
|
|
(27.9 |
) |
Cash and cash equivalents |
|
|
139,246 |
|
|
|
91,216 |
|
|
|
181,509 |
|
|
52.7 |
|
|
(23.3 |
) |
Available-for-sale debt securities, at fair value |
|
|
187,225 |
|
|
|
194,250 |
|
|
|
212,767 |
|
|
(3.6 |
) |
|
(12.0 |
) |
Other investments |
|
|
16,264 |
|
|
|
16,276 |
|
|
|
12,172 |
|
|
(0.1 |
) |
|
33.6 |
|
Loans held for sale |
|
|
16,075 |
|
|
|
1,795 |
|
|
|
7,534 |
|
|
795.5 |
|
|
113.4 |
|
CRE loans |
|
|
905,534 |
|
|
|
885,585 |
|
|
|
833,615 |
|
|
2.3 |
|
|
8.6 |
|
SBA loans |
|
|
247,550 |
|
|
|
239,692 |
|
|
|
238,994 |
|
|
3.3 |
|
|
3.6 |
|
C&I loans |
|
|
147,508 |
|
|
|
120,970 |
|
|
|
117,841 |
|
|
21.9 |
|
|
25.2 |
|
Home mortgage loans |
|
|
502,995 |
|
|
|
518,024 |
|
|
|
500,635 |
|
|
(2.9 |
) |
|
0.5 |
|
Consumer loans |
|
|
1,400 |
|
|
|
1,574 |
|
|
|
1,400 |
|
|
(11.1 |
) |
|
— |
|
Gross loans receivable |
|
|
1,804,987 |
|
|
|
1,765,845 |
|
|
|
1,692,485 |
|
|
2.2 |
|
|
6.6 |
|
Allowance for credit losses |
|
|
(22,129 |
) |
|
|
(21,993 |
) |
|
|
(20,814 |
) |
|
0.6 |
|
|
6.3 |
|
Net loans receivable |
|
|
1,782,858 |
|
|
|
1,743,852 |
|
|
|
1,671,671 |
|
|
2.2 |
|
|
6.7 |
|
Premises and equipment, net |
|
|
4,971 |
|
|
|
5,248 |
|
|
|
4,647 |
|
|
(5.3 |
) |
|
7.0 |
|
Accrued interest receivable, net |
|
|
8,370 |
|
|
|
8,259 |
|
|
|
7,302 |
|
|
1.3 |
|
|
14.6 |
|
Servicing assets |
|
|
11,405 |
|
|
|
11,741 |
|
|
|
12,898 |
|
|
(2.9 |
) |
|
(11.6 |
) |
Company owned life insurance |
|
|
22,399 |
|
|
|
22,233 |
|
|
|
21,762 |
|
|
0.7 |
|
|
2.9 |
|
Deferred tax assets, net |
|
|
13,802 |
|
|
|
13,309 |
|
|
|
12,323 |
|
|
3.7 |
|
|
12.0 |
|
Other real estate owned |
|
|
1,237 |
|
|
|
— |
|
|
|
— |
|
|
n/m |
|
|
n/m |
|
Operating right-of-use assets |
|
|
8,864 |
|
|
|
8,497 |
|
|
|
9,459 |
|
|
4.3 |
|
|
(6.3 |
) |
Other assets |
|
|
21,804 |
|
|
|
31,054 |
|
|
|
16,550 |
|
|
(29.8 |
) |
|
31.7 |
|
Total assets |
|
$ |
2,234,520 |
|
|
$ |
2,147,730 |
|
|
$ |
2,170,594 |
|
|
4.0 |
% |
|
2.9 |
% |
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities: |
|
|
|
|
|
|
|
|
|
|
||||||||
Noninterest-bearing |
|
$ |
539,396 |
|
|
$ |
522,751 |
|
|
$ |
643,902 |
|
|
3.2 |
% |
|
(16.2 |
)% |
Money market and others |
|
|
327,718 |
|
|
|
399,018 |
|
|
|
436,796 |
|
|
(17.9 |
) |
|
(25.0 |
) |
Time deposits greater than $250 |
|
|
451,497 |
|
|
|
433,892 |
|
|
|
411,648 |
|
|
4.1 |
|
|
9.7 |
|
Other time deposits |
|
|
576,800 |
|
|
|
451,897 |
|
|
|
412,472 |
|
|
27.6 |
|
|
39.8 |
|
Total deposits |
|
|
1,895,411 |
|
|
|
1,807,558 |
|
|
|
1,904,818 |
|
|
4.9 |
|
|
(0.5 |
) |
Federal Home Loan Bank advances |
|
|
105,000 |
|
|
|
105,000 |
|
|
|
50,000 |
|
|
— |
|
|
110.0 |
|
Accrued interest payable |
|
|
12,270 |
|
|
|
12,628 |
|
|
|
5,751 |
|
|
(2.8 |
) |
|
113.4 |
|
Operating lease liabilities |
|
|
9,614 |
|
|
|
9,341 |
|
|
|
10,513 |
|
|
2.9 |
|
|
(8.6 |
) |
Other liabilities |
|
|
17,500 |
|
|
|
20,577 |
|
|
|
15,731 |
|
|
(15.0 |
) |
|
11.2 |
|
Total liabilities |
|
|
2,039,795 |
|
|
|
1,955,104 |
|
|
|
1,986,813 |
|
|
4.3 |
|
|
2.7 |
|
Shareholders' equity: |
|
|
|
|
|
|
|
|
|
|
||||||||
Common stock |
|
|
75,957 |
|
|
|
76,280 |
|
|
|
79,475 |
|
|
(0.4 |
) |
|
(4.4 |
) |
Additional paid-in capital |
|
|
11,240 |
|
|
|
10,942 |
|
|
|
10,056 |
|
|
2.7 |
|
|
11.8 |
|
Retained earnings |
|
|
124,280 |
|
|
|
120,855 |
|
|
|
109,908 |
|
|
2.8 |
|
|
13.1 |
|
Accumulated other comprehensive loss |
|
|
(16,752 |
) |
|
|
(15,451 |
) |
|
|
(15,658 |
) |
|
8.4 |
|
|
7.0 |
|
Total shareholders’ equity |
|
|
194,725 |
|
|
|
192,626 |
|
|
|
183,781 |
|
|
1.1 |
|
|
6.0 |
|
Total liabilities and shareholders' equity |
|
$ |
2,234,520 |
|
|
$ |
2,147,730 |
|
|
$ |
2,170,594 |
|
|
4.0 |
% |
|
2.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
For the Three Months Ended |
|
% Change 1Q2024 vs. |
|||||||||||||||
| ($ in thousands, except share and per share data) |
|
1Q2024 |
|
4Q2023 |
|
1Q2023 |
|
4Q2023 |
|
1Q2023 |
||||||||
Interest income |
|
|
|
|
|
|
|
|
|
|
||||||||
Interest and fees on loans |
|
$ |
30,142 |
|
$ |
28,914 |
|
$ |
26,011 |
|
|
4.2 |
% |
|
15.9 |
% |
||
Interest on available-for-sale debt securities |
|
|
1,460 |
|
|
|
1,484 |
|
|
|
1,566 |
|
|
(1.6 |
) |
|
(6.8 |
) |
Other interest income |
|
|
1,311 |
|
|
|
1,385 |
|
|
|
1,017 |
|
|
(5.3 |
) |
|
28.9 |
|
Total interest income |
|
|
32,913 |
|
|
|
31,783 |
|
|
|
28,594 |
|
|
3.6 |
|
|
15.1 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
||||||||
Interest on deposits |
|
|
15,675 |
|
|
|
14,127 |
|
|
|
10,382 |
|
|
11.0 |
|
|
51.0 |
|
Interest on borrowings |
|
|
1,259 |
|
|
|
1,426 |
|
|
|
320 |
|
|
(11.7 |
) |
|
293.4 |
% |
Total interest expense |
|
|
16,934 |
|
|
|
15,553 |
|
|
|
10,702 |
|
|
8.9 |
|
|
58.2 |
|
Net interest income |
|
|
15,979 |
|
|
|
16,230 |
|
|
|
17,892 |
|
|
(1.5 |
) |
|
(10.7 |
) |
Provision for (reversal of) credit losses |
|
|
145 |
|
|
|
630 |
|
|
|
(338 |
) |
|
(77.0 |
) |
|
n/m |
|
Net interest income after provision for credit losses |
|
|
15,834 |
|
|
|
15,600 |
|
|
|
18,230 |
|
|
1.5 |
|
|
(13.1 |
) |
Noninterest income |
|
|
|
|
|
|
|
|
|
|
||||||||
Service charges on deposits |
|
|
612 |
|
|
|
557 |
|
|
|
418 |
|
|
9.9 |
|
|
46.4 |
|
Loan servicing fees, net of amortization |
|
|
772 |
|
|
|
540 |
|
|
|
846 |
|
|
43.0 |
|
|
(8.7 |
) |
Gain on sale of loans |
|
|
1,703 |
|
|
|
1,996 |
|
|
|
2,570 |
|
|
(14.7 |
) |
|
(33.7 |
) |
Other income |
|
|
499 |
|
|
|
587 |
|
|
|
461 |
|
|
(15.0 |
) |
|
8.2 |
|
Total noninterest income |
|
|
3,586 |
|
|
|
3,680 |
|
|
|
4,295 |
|
|
(2.6 |
) |
|
(16.5 |
) |
Noninterest expense |
|
|
|
|
|
|
|
|
|
|
||||||||
Salaries and employee benefits |
|
|
7,841 |
|
|
|
7,646 |
|
|
|
7,252 |
|
|
2.6 |
|
|
8.1 |
|
Occupancy and equipment |
|
|
1,655 |
|
|
|
1,616 |
|
|
|
1,570 |
|
|
2.4 |
|
|
5.4 |
|
Data processing and communication |
|
|
487 |
|
|
|
644 |
|
|
|
550 |
|
|
(24.4 |
) |
|
(11.5 |
) |
Professional fees |
|
|
395 |
|
|
|
391 |
|
|
|
359 |
|
|
1.0 |
|
|
10.0 |
|
FDIC insurance and regulatory assessments |
|
|
374 |
|
|
|
237 |
|
|
|
467 |
|
|
57.8 |
|
|
(19.9 |
) |
Promotion and advertising |
|
|
149 |
|
|
|
86 |
|
|
|
162 |
|
|
73.3 |
|
|
(8.0 |
) |
Directors’ fees |
|
|
157 |
|
|
|
145 |
|
|
|
161 |
|
|
8.3 |
|
|
(2.5 |
) |
Foundation donation and other contributions |
|
|
540 |
|
|
|
524 |
|
|
|
753 |
|
|
3.1 |
|
|
(28.3 |
) |
Other expenses |
|
|
559 |
|
|
|
694 |
|
|
|
634 |
|
|
(19.5 |
) |
|
(11.8 |
) |
Total noninterest expense |
|
|
12,157 |
|
|
|
11,983 |
|
|
|
11,908 |
|
|
1.5 |
|
|
2.1 |
|
Income before income tax expense |
|
|
7,263 |
|
|
|
7,297 |
|
|
|
10,617 |
|
|
(0.5 |
) |
|
(31.6 |
) |
Income tax expense |
|
|
2,037 |
|
|
|
2,125 |
|
|
|
3,083 |
|
|
(4.1 |
) |
|
(33.9 |
) |
Net income |
|
$ |
5,226 |
|
|
$ |
5,172 |
|
|
$ |
7,534 |
|
|
1.0 |
% |
|
(30.6 |
)% |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Book value per share |
|
$ |
13.00 |
|
|
$ |
12.84 |
|
|
$ |
12.02 |
|
|
1.2 |
% |
|
8.2 |
% |
Earnings per share - basic |
|
|
0.34 |
|
|
|
0.34 |
|
|
|
0.48 |
|
|
— |
|
|
(29.2 |
) |
Earnings per share - diluted |
|
|
0.34 |
|
|
|
0.34 |
|
|
|
0.48 |
|
|
— |
|
|
(29.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Shares of common stock outstanding, at period end |
|
|
14,982,555 |
|
|
|
15,000,436 |
|
|
|
15,286,558 |
|
|
(0.1 |
)% |
|
(2.0 |
)% |
Weighted average shares: |
|
|
|
|
|
|
|
|
|
|
||||||||
- Basic |
|
|
14,991,835 |
|
|
|
15,027,110 |
|
|
|
15,284,350 |
|
|
(0.2 |
)% |
|
(1.9 |
)% |
- Diluted |
|
|
14,991,835 |
|
|
|
15,034,822 |
|
|
|
15,312,673 |
|
|
(0.3 |
) |
|
(2.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
||||||||
KEY RATIOS
|
|
|
|
|
|
|
|
|
|
|
|||||
|
For the Three Months Ended |
|
% Change 1Q2024 vs. |
||||||||||||
|
1Q2024 |
|
4Q2023 |
|
1Q2023 |
|
4Q2023 |
|
1Q2023 |
||||||
Return on average assets (ROA)(1) |
|
0.96 |
% |
|
0.96 |
% |
|
1.43 |
% |
|
— |
% |
|
(0.5 |
)% |
Return on average equity (ROE)(1) |
|
10.83 |
|
|
11.18 |
|
|
16.82 |
|
|
(0.4 |
) |
|
(6.0 |
) |
Net interest margin(1) |
|
3.06 |
|
|
3.12 |
|
|
3.57 |
|
|
(0.1 |
) |
|
(0.5 |
) |
Efficiency ratio |
|
62.14 |
|
|
60.19 |
|
|
53.67 |
|
|
2.0 |
|
|
8.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total risk-based capital ratio |
|
13.59 |
% |
|
13.77 |
% |
|
13.27 |
% |
|
(0.2 |
)% |
|
0.3 |
% |
Tier 1 risk-based capital ratio |
|
12.34 |
|
|
12.52 |
|
|
12.06 |
|
|
(0.2 |
) |
|
0.3 |
|
Common equity tier 1 ratio |
|
12.34 |
|
|
12.52 |
|
|
12.06 |
|
|
(0.2 |
) |
|
0.3 |
|
Leverage ratio |
|
9.65 |
|
|
9.57 |
|
|
9.43 |
|
|
0.1 |
|
|
0.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(1) |
Annualized. |
ASSET QUALITY
|
|
|
|
|
|
|
||||||
|
As of and For the Three Months Ended |
|||||||||||
| ($ in thousands) |
|
1Q2024 |
|
4Q2023 |
|
1Q2023 |
||||||
Nonaccrual loans(1) |
|
$ |
4,343 |
|
|
$ |
6,082 |
|
|
$ |
2,504 |
|
Loans 90 days or more past due, accruing(2) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Nonperforming loans |
|
|
4,343 |
|
|
|
6,082 |
|
|
|
2,504 |
|
OREO |
|
|
1,237 |
|
|
|
— |
|
|
|
— |
|
Nonperforming assets |
|
$ |
5,580 |
|
|
$ |
6,082 |
|
|
$ |
2,504 |
|
|
|
|
|
|
|
|
||||||
Criticized loans by risk categories: |
|
|
|
|
|
|
||||||
Special mention loans |
|
$ |
1,415 |
|
|
$ |
1,428 |
|
|
$ |
2,617 |
|
Classified loans(1)(3) |
|
|
10,149 |
|
|
|
11,921 |
|
|
|
3,155 |
|
Total criticized loans |
|
$ |
11,564 |
|
|
$ |
13,349 |
|
|
$ |
5,772 |
|
|
|
|
|
|
|
|
||||||
Criticized loans by loan type: |
|
|
|
|
|
|
||||||
CRE loans |
|
$ |
5,292 |
|
|
$ |
4,995 |
|
|
$ |
560 |
|
SBA loans |
|
|
6,055 |
|
|
|
5,864 |
|
|
|
3,676 |
|
C&I loans |
|
|
— |
|
|
|
— |
|
|
|
271 |
|
Home mortgage loans |
|
|
217 |
|
|
|
2,490 |
|
|
|
1,265 |
|
Total criticized loans |
|
$ |
11,564 |
|
|
$ |
13,349 |
|
|
$ |
5,772 |
|
|
|
|
|
|
|
|
||||||
Nonperforming loans / gross loans |
|
|
0.24 |
% |
|
|
0.34 |
% |
|
|
0.15 |
% |
Nonperforming assets / gross loans plus OREO |
|
|
0.31 |
|
|
|
0.34 |
|
|
|
0.15 |
|
Nonperforming assets / total assets |
|
|
0.25 |
|
|
|
0.28 |
|
|
|
0.12 |
|
Classified loans / gross loans |
|
|
0.56 |
|
|
|
0.68 |
|
|
|
0.19 |
|
Criticized loans / gross loans |
|
|
0.64 |
|
|
|
0.76 |
|
|
|
0.34 |
|
|
|
|
|
|
|
|
||||||
Allowance for credit losses ratios: |
|
|
|
|
|
|
||||||
As a % of gross loans |
|
|
1.23 |
% |
|
|
1.25 |
% |
|
|
1.23 |
% |
As a % of nonperforming loans |
|
|
510 |
|
|
|
362 |
|
|
|
831 |
|
As a % of nonperforming assets |
|
|
397 |
|
|
|
362 |
|
|
|
831 |
|
As a % of classified loans |
|
|
218 |
|
|
|
184 |
|
|
|
660 |
|
As a % of criticized loans |
|
|
191 |
|
|
|
165 |
|
|
|
361 |
|
|
|
|
|
|
|
|
||||||
Net charge-offs |
|
$ |
57 |
|
|
$ |
161 |
|
|
$ |
93 |
|
Net charge-offs(5) to average gross loans(6) |
|
|
0.01 |
% |
|
|
0.04 |
% |
|
|
0.02 |
% |
|
|
|
|
|
|
|
||||||
(1) |
Excludes the guaranteed portion of SBA loans that are in liquidation totaling $3.1 million, $2.0 million and $1.6 million as of March 31, 2024, December 31, 2023 and March 31, 2023, respectively. |
|
(2) |
Excludes the guaranteed portion of SBA loans that are in liquidation totaling $246 thousand as of March 31, 2023. |
|
(3) |
Consists of substandard, doubtful and loss categories. |
|
(4) |
See the Reconciliation of GAAP to NON-GAAP Financial Measures. |
|
(5) |
Annualized. |
|
(6) |
Includes loans held for sale. |
|
|
|
|
|
|
|
||||||
($ in thousands) |
|
1Q2024 |
|
4Q2023 |
|
1Q2023 |
||||||
Accruing delinquent loans 30-89 days past due |
|
|
|
|
|
|
||||||
30-59 days |
|
$ |
801 |
|
$ |
5,945 |
|
$ |
4,866 |
|||
60-89 days |
|
|
3,103 |
|
|
|
3,662 |
|
|
|
— |
|
Total |
|
$ |
3,904 |
|
|
$ |
9,607 |
|
|
$ |
4,866 |
|
|
|
|
|
|
|
|
||||||
AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
For the Three Months Ended |
|||||||||||||||||||||||||||||||
|
|
1Q2024 |
|
4Q2023 |
|
1Q2023 |
|||||||||||||||||||||||||||
($ in thousands) |
|
Average
|
|
Interest
|
|
Yield/
|
|
Average
|
|
Interest
|
|
Yield/
|
|
Average
|
|
Interest
|
|
Yield/
|
|||||||||||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing deposits in other banks |
|
$ |
73,047 |
|
$ |
989 |
|
5.35 |
% |
|
$ |
78,496 |
|
$ |
1,076 |
|
5.36 |
% |
|
$ |
74,162 |
|
$ |
846 |
|
4.56 |
% |
||||||
Federal funds sold and other investments |
|
|
16,265 |
|
|
|
322 |
|
|
7.92 |
|
|
|
16,115 |
|
|
|
309 |
|
|
7.66 |
|
|
|
12,130 |
|
|
|
171 |
|
|
5.65 |
|
Available-for-sale debt securities, at fair value |
|
|
191,383 |
|
|
|
1,460 |
|
|
3.05 |
|
|
|
189,462 |
|
|
|
1,484 |
|
|
3.13 |
|
|
|
210,462 |
|
|
|
1,566 |
|
|
2.98 |
|
CRE loans |
|
|
901,262 |
|
|
|
13,729 |
|
|
6.13 |
|
|
|
892,092 |
|
|
|
13,104 |
|
|
5.83 |
|
|
|
840,402 |
|
|
|
11,179 |
|
|
5.39 |
|
SBA loans |
|
|
259,368 |
|
|
|
7,213 |
|
|
11.19 |
|
|
|
255,692 |
|
|
|
7,055 |
|
|
10.95 |
|
|
|
274,889 |
|
|
|
6,982 |
|
|
10.30 |
|
C&I loans |
|
|
134,893 |
|
|
|
2,670 |
|
|
7.96 |
|
|
|
122,950 |
|
|
|
2,416 |
|
|
7.80 |
|
|
|
121,915 |
|
|
|
2,200 |
|
|
7.32 |
|
Home mortgage loans |
|
|
512,023 |
|
|
|
6,495 |
|
|
5.07 |
|
|
|
515,840 |
|
|
|
6,315 |
|
|
4.90 |
|
|
|
486,800 |
|
|
|
5,633 |
|
|
4.63 |
|
Consumer loans |
|
|
1,386 |
|
|
|
35 |
|
|
10.10 |
|
|
|
966 |
|
|
|
24 |
|
|
9.92 |
|
|
|
1,386 |
|
|
|
17 |
|
|
5.07 |
|
Loans(2) |
|
|
1,808,932 |
|
|
|
30,142 |
|
|
6.69 |
|
|
|
1,787,540 |
|
|
|
28,914 |
|
|
6.43 |
|
|
|
1,725,392 |
|
|
|
26,011 |
|
|
6.10 |
|
Total interest-earning assets |
|
|
2,089,627 |
|
|
|
32,913 |
|
|
6.32 |
|
|
|
2,071,613 |
|
|
|
31,783 |
|
|
6.10 |
|
|
|
2,022,146 |
|
|
|
28,594 |
|
|
5.71 |
|
Noninterest-earning assets |
|
|
87,586 |
|
|
|
|
|
|
|
86,874 |
|
|
|
|
|
|
|
82,538 |
|
|
|
|
|
|||||||||
Total assets |
|
$ |
2,177,213 |
|
|
|
|
|
|
$ |
2,158,487 |
|
|
|
|
|
|
$ |
2,104,684 |
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Money market deposits and others |
|
$ |
367,386 |
|
|
$ |
3,940 |
|
|
4.31 |
% |
|
$ |
377,304 |
|
|
$ |
3,993 |
|
|
4.20 |
% |
|
$ |
409,813 |
|
|
$ |
3,150 |
|
|
3.12 |
% |
Time deposits |
|
|
954,442 |
|
|
|
11,735 |
|
|
4.94 |
|
|
|
866,142 |
|
|
|
10,134 |
|
|
4.64 |
|
|
|
786,381 |
|
|
|
7,232 |
|
|
3.73 |
|
Total interest-bearing deposits |
|
|
1,321,828 |
|
|
|
15,675 |
|
|
4.77 |
|
|
|
1,243,446 |
|
|
|
14,127 |
|
|
4.51 |
|
|
|
1,196,194 |
|
|
|
10,382 |
|
|
3.52 |
|
Borrowings |
|
|
108,681 |
|
|
|
1,259 |
|
|
4.66 |
|
|
|
118,764 |
|
|
|
1,426 |
|
|
4.76 |
|
|
|
26,168 |
|
|
|
320 |
|
|
4.95 |
|
Total interest-bearing liabilities |
|
|
1,430,509 |
|
|
|
16,934 |
|
|
4.76 |
|
|
|
1,362,210 |
|
|
|
15,553 |
|
|
4.53 |
|
|
|
1,222,362 |
|
|
|
10,702 |
|
|
3.55 |
|
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Noninterest-bearing deposits |
|
|
514,503 |
|
|
|
|
|
|
|
569,965 |
|
|
|
|
|
|
|
671,490 |
|
|
|
|
|
|||||||||
Other noninterest-bearing liabilities |
|
|
39,207 |
|
|
|
|
|
|
|
41,312 |
|
|
|
|
|
|
|
31,648 |
|
|
|
|
|
|||||||||
Total noninterest-bearing liabilities |
|
|
553,710 |
|
|
|
|
|
|
|
611,277 |
|
|
|
|
|
|
|
703,138 |
|
|
|
|
|
|||||||||
Shareholders’ equity |
|
|
192,994 |
|
|
|
|
|
|
|
185,000 |
|
|
|
|
|
|
|
179,184 |
|
|
|
|
|
|||||||||
Total liabilities and shareholders’ equity |
|
$ |
2,177,213 |
|
|
|
|
|
|
|
2,158,487 |
|
|
|
|
|
|
|
2,104,684 |
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net interest income / interest rate spreads |
|
|
|
$ |
15,979 |
|
|
1.56 |
% |
|
|
|
$ |
16,230 |
|
|
1.57 |
% |
|
|
|
$ |
17,892 |
|
|
2.16 |
% |
||||||
Net interest margin |
|
|
|
|
|
3.06 |
% |
|
|
|
|
|
3.12 |
% |
|
|
|
|
|
3.57 |
% |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Cost of deposits & cost of funds: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total deposits / cost of deposits |
|
$ |
1,836,331 |
|
|
$ |
15,675 |
|
|
3.43 |
% |
|
$ |
1,813,411 |
|
|
$ |
14,127 |
|
|
3.09 |
% |
|
$ |
1,867,684 |
|
|
$ |
10,382 |
|
|
2.25 |
% |
Total funding liabilities / cost of funds |
|
|
1,945,012 |
|
|
|
16,934 |
|
|
3.50 |
|
|
|
1,932,175 |
|
|
|
15,553 |
|
|
3.19 |
|
|
|
1,893,852 |
|
|
|
10,702 |
|
|
2.29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
(1) |
Annualized. |
|
(2) |
Includes loans held for sale. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240425010158/en/
Contacts
Investor Relations
OP Bancorp
Christine Oh
EVP & CFO
213.892.1192
Christine.oh@myopenbank.com
