OP Bancorp Reports Net Income for 2024 Fourth Quarter of $5.0 Million and Diluted Earnings Per Share of $0.33

1/23/25 4:30:00 PM ET

$OPBK

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2024 Fourth Quarter Highlights compared with 2024 Third Quarter:

Financial Results:
- Net income of $5.0 million, compared to $5.4 million
- Diluted earnings per share of $0.33, compared to $0.36
- Net interest income of $16.9 million, compared to $16.5 million
- Net interest margin of 2.96%, compared to 2.95%
- Provision for credit losses of $1.5 million, compared to $448 thousand
- Total assets of $2.37 billion, compared to $2.39 billion
- Gross loans of $1.96 billion, compared to $1.93 billion
- Total deposits of $2.03 billion, compared to $2.06 billion
Credit Quality:
- Allowance for credit losses to gross loans of 1.27%, compared to 1.19%
- Net charge-offs⁽¹⁾ to average gross loans⁽²⁾ of 0.00%, compared to 0.01%
- Loans past due 30-89 days to gross loans of 0.46%, compared to 0.53%
- Nonperforming loans to gross loans of 0.40%, compared to 0.19%
- Criticized loans⁽³⁾ to gross loans of 1.00%, compared to 0.85%
Capital Levels:
- Remained well-capitalized with a Common Equity Tier 1 ("CET1") ratio of 11.35%
- Book value per common share increased to $13.83, compared to $13.75
- Paid quarterly cash dividend of $0.12 per share for the periods

___________________________________________________________

⁽¹⁾ Annualized.

⁽²⁾ Includes loans held for sale.

⁽³⁾ Includes Special Mention, Substandard, Doubtful, and Loss categories.

OP Bancorp (the "Company") (NASDAQ:OPBK), the holding company of Open Bank (the "Bank"), today reported its financial results for the fourth quarter of 2024. Net income for the fourth quarter of 2024 was $5.0 million, or $0.33 per diluted common share, compared with $5.4 million, or $0.36 per diluted common share, for the third quarter of 2024, and $5.2 million, or $0.34 per diluted common share, for the fourth quarter of 2023.

Min Kim, President and Chief Executive Officer:

"We are continuing to experience the effects of uncertainty in the financial markets providing challenges in increasing customer deposits and lowering costs of deposit," said Min Kim, President and Chief Executive. "We continue to see slightly elevated levels of classified loans, and we have responded prudently to managing these assets. We are also paying careful attention to those of our customers and employees who have been affected by the unprecedented wildfires in the Los Angeles basin, and we express our deepest condolences to all of those who have lost homes, businesses or jobs, or who have been affected by these disasters. We look forward to opportunities to assist in the recovery of the affected communities."

SELECTED FINANCIAL HIGHLIGHTS


($ in thousands, except per share data)	As of and For the Quarter									% Change 4Q2024 vs.
($ in thousands, except per share data)		4Q2024			3Q2024			4Q2023		3Q2024		4Q2023
Selected Income Statement Data:
Net interest income	$	16,929		$	16,506		$	16,230		2.6	%	4.3	%
Provision for credit losses		1,547			448			630		245.3		145.6
Noninterest income		4,417			4,240			3,680		4.2		20.0
Noninterest expense		13,133			12,720			11,983		3.2		9.6
Income tax expense		1,695			2,142			2,125		(20.9	)	(20.2	)
Net income		4,971			5,436			5,172		(8.6	)	(3.9	)
Diluted earnings per share		0.33			0.36			0.34		(8.3	)	(2.9	)
Selected Balance Sheet Data:
Gross loans	$	1,956,852		$	1,931,007		$	1,765,845		1.3	%	10.8	%
Total deposits		2,027,285			2,064,603			1,807,558		(1.8	)	12.2
Total assets		2,366,013			2,387,980			2,147,730		(0.9	)	10.2
Average loans⁽¹⁾		1,947,653			1,905,952			1,787,540		2.2		9.0
Average deposits		2,029,855			1,998,633			1,813,411		1.6		11.9
Credit Quality:
Nonperforming loans	$	7,820		$	3,620		$	6,082		116.0	%	28.6	%
Nonperforming loans to gross loans		0.40	%		0.19	%		0.34	%	0.21		0.06
Criticized loans⁽²⁾ to gross loans		1.00			0.85			0.76		0.15		0.24
Net charge-offs⁽³⁾ to average gross loans⁽¹⁾		0.00			0.01			0.04		(0.01	)	(0.04	)
Allowance for credit losses to gross loans		1.27			1.19			1.25		0.08		0.02
Allowance for credit losses to nonperforming loans		317			634			362		(317.00	)	(45.00	)
Financial Ratios:
Return on average assets⁽³⁾		0.84	%		0.94	%		0.96	%	(0.10	)%	(0.12	)%
Return on average equity⁽³⁾		9.75			10.95			11.18		(1.20	)	(1.43	)
Net interest margin⁽³⁾		2.96			2.95			3.12		0.01		(0.16	)
Efficiency ratio⁽⁴⁾		61.52			61.31			60.19		0.21		1.33
Common equity tier 1 capital ratio		11.35			11.57			12.52		(0.22	)	(1.17	)
Leverage ratio		9.27			9.30			9.57		(0.03	)	(0.30	)
Book value per common share	$	13.83		$	13.75		$	12.84		0.6		7.7

⁽¹⁾	Includes loans held for sale.
⁽²⁾	Includes Special Mention, Substandard, Doubtful, and Loss categories.
⁽³⁾	Annualized.
⁽⁴⁾	Represents noninterest expense divided by the sum of net interest income and noninterest income.

INCOME STATEMENT HIGHLIGHTS

Net Interest Income and Net Interest Margin


($ in thousands)	For the Three Months Ended						% Change 4Q2024 vs.
($ in thousands)	4Q2024		3Q2024		4Q2023		3Q2024		4Q2023
Interest Income
Interest income	$	35,051	$	35,299	$	31,783	(0.7	)%	10.3	%
Interest expense		18,122		18,793		15,553	(3.6	)	16.5
Net interest income	$	16,929	$	16,506	$	16,230	2.6	%	4.3	%


($ in thousands)	For the Three Months Ended												Yield Change 4Q2024 vs.
	4Q2024				3Q2024				4Q2023				Yield Change 4Q2024 vs.
	Interest and Fees		Yield/Rate⁽¹⁾		Interest and Fees		Yield/Rate⁽¹⁾		Interest and Fees		Yield/Rate⁽¹⁾		3Q2024		4Q2023
Interest-earning Assets:
Loans	$	31,729	6.49	%	$	31,885	6.66	%	$	28,914	6.43	%	(0.17	)%	0.06	%
Total interest-earning assets		35,051	6.12			35,299	6.30			31,783	6.10		(0.18	)	0.02
Interest-bearing Liabilities:
Interest-bearing deposits		17,182	4.60			17,921	4.85			14,127	4.51		(0.25	)	0.09
Total interest-bearing liabilities		18,122	4.58			18,793	4.82			15,553	4.53		(0.24	)	0.05
Ratios:
Net interest income / interest rate spreads		16,929	1.54			16,506	1.48			16,230	1.57		0.06		(0.03	)
Net interest margin			2.96				2.95				3.12		0.01		(0.16	)
Total deposits / cost of deposits		17,182	3.37			17,921	3.57			14,127	3.09		(0.20	)	0.28
Total funding liabilities / cost of funds		18,122	3.41			18,793	3.60			15,553	3.19		(0.19	)	0.22

⁽¹⁾	Annualized.


($ in thousands)	For the Three Months Ended															Yield Change 4Q2024 vs.
	4Q2024					3Q2024					4Q2023					Yield Change 4Q2024 vs.
	Interest & Fees			Yield⁽¹⁾		Interest & Fees			Yield⁽¹⁾		Interest & Fees			Yield⁽¹⁾		3Q2024		4Q2023
Loan Yield Component:
Contractual interest rate	$	31,406		6.42	%	$	31,182		6.52	%	$	28,596		6.36	%	(0.10	)%	0.06	%
Accretion of SBA loan discount⁽²⁾		813		0.17			918		0.19			960		0.21		(0.02	)	(0.04	)
Amortization of net deferred fees		(47	)	(0.01	)		23		—			(67	)	-0.01		(0.01	)	—
Amortization of premium		(363	)	(0.07	)		(487	)	(0.10	)		(423	)	(0.09	)	0.03		0.02
Net interest recognized on nonaccrual loans		(232	)	(0.05	)		(61	)	(0.01	)		(345	)	(0.08	)	(0.04	)	0.03
Prepayment penalty income and other fees⁽³⁾		152		0.03			310		0.06			193		0.04		(0.03	)	(0.01	)
Yield on loans	$	31,729		6.49	%	$	31,885		6.66	%	$	28,914		6.43	%	(0.17	)%	0.06	%

⁽¹⁾	Annualized.
⁽²⁾	Includes discount accretion from SBA loan payoffs of $329 thousand, $426 thousand and $413 thousand for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, respectively.
⁽³⁾	Includes prepayment penalty income of $45 thousand, $114 thousand and $43 thousand for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, respectively, from Commercial Real Estate ("CRE") loans.

Fourth Quarter 2024 vs. Third Quarter 2024

Net interest income increased $423 thousand, or 2.6%, primarily due to lower interest expense on interest-bearing deposits, partially offset by lower interest income on loans as our deposit costs repriced faster than our loan yields following the Federal Reserve's rate cuts from September 2024. Net interest margin was 2.96%, an increase of 1 basis point from 2.95%.

A $739 thousand decrease in interest expense on interest-bearing deposits was primarily due to a 25 basis point decrease in average cost.
A 156 thousand decrease in interest income on loans was primarily due to a 17 basis point decrease in average yield.

Fourth Quarter 2024 vs. Fourth Quarter 2023

Net interest income increased $699 thousand, or 4.3%, as higher interest income from a $206.4 million, or 10.0%, increase in average earning assets (loans and interest-bearing deposits in other banks) surpassed higher interest expense from a $210.6 million, or 15.5%, increase in average interest-bearing liabilities (deposits and borrowings). Net interest margin, however, decreased 16 basis points to 2.96% from 3.12%, primarily due to a faster increase in average interest-bearing liabilities over average earnings assets and a faster repricing in deposits costs over loan yields.

A $2.8 million increase in interest income on loans was primarily due to a $160.1 million, or 9.0%, increase in average balance and a 6 basis point increase in average yield.
A $380 thousand increase in interest income on interest-bearing deposits in other banks was primarily due to a $41.7 million, or 53.1%, increase in average balance.
A $3.1 million increase in interest expense on interest-bearing deposits was primarily due to a $242.9 million, or 19.5%, increase in average balance and a 9 basis point increase in average cost.
A $486 thousand decrease in interest expense on borrowings was primarily due to a $32 million, or 27.1%, decrease in average balance and a 44 basis point decrease in average cost.

Provision for Credit Losses


($ in thousands)	For the Three Months Ended
($ in thousands)		4Q2024		3Q2024		4Q2023
Provision for credit losses on loans	$	1,859		$	234	$	537
Provision for (reversal of) credit losses on off-balance sheet exposure		(312	)		214		93
Total provision for credit losses	$	1,547		$	448	$	630

Fourth Quarter 2024 vs. Third Quarter 2024

The Company recorded $1.5 million in total provision for credit losses, an increase of $1.1 million, compared with $448 thousand, , reflecting an ongoing period of relatively elevated interest rates and the related impacts on our customers and on the values of the collateral securing our loans. Provision for credit losses on loans increased $1.6 million and provision for credit losses on off-balance sheet exposure decreased $526 thousand.

Provision for credit losses on loans of $1.9 million was due to a $1.5 million increase in qualitative reserves, and a $810 thousand increase in specific reserves, partially offset by a $439 thousand decrease in general reserves.

The increase in qualitative reserves was primarily due to changes in the Bank's asset quality metrics and a decrease in CRE value indices.
The increase in specific reserves was primarily due to two SBA relationships.
The decrease in general reserves was primarily due to a decrease in average life of home mortgage loans, partially offset by an increase from loan growth.

Reversal of credit losses on off-balance sheet exposure of $312 thousand was primarily due to a change in calculation method for revolving accounts using expected funding amount instead of unfunded commitment amount.

Fourth Quarter 2024 vs. Fourth Quarter 2023

The Company recorded $1.5 million in total provision for credit losses, an increase of $917 thousand, compared with $630 thousand. Provision for credit losses on loans increased $1.3 million and provision for credit losses on off-balance sheet exposure decreased $405 thousand.

Noninterest Income


($ in thousands)	For the Three Months Ended						% Change 4Q2024 vs.
($ in thousands)	4Q2024		3Q2024		4Q2023		3Q2024		4Q2023
Noninterest Income
Service charges on deposits	$	967	$	889	$	557	8.8	%	73.6	%
Loan servicing fees, net of amortization		858		693		540	23.8		58.9
Gain on sale of loans		2,197		2,088		1,996	5.2		10.1
Other income		395		570		587	(30.7	)	(32.7	)
Total noninterest income	$	4,417	$	4,240	$	3,680	4.2	%	20.0	%

Fourth Quarter 2024 vs. Third Quarter 2024

Noninterest income increased $177 thousand, or 4.2%, primarily due to higher loan servicing fees and gain on sale of loans, partially offset by lower other income.

Loan servicing fees, net of amortization, were $858 thousand, an increase of $165 thousand from $693 thousand, primarily due to a decrease in servicing fee amortization driven by lower loan payoffs in loan servicing portfolio.
Gain on sale of loans was $2.2 million, an increase of $109 thousand from $2.1 million, primarily due to a higher average premium on sales. The Bank sold $34.7 million in SBA loans at an average premium rate of 7.82%, compared to the sale of $35.6 million at an average premium rate of 7.30%.
Other income was $395 thousand, a decrease of $175 thousand from $570 thousand, primarily due to an increase in unrealized loss of CRA-qualified mutual funds driven by market interest rate changes.

Fourth Quarter 2024 vs. Fourth Quarter 2023

Noninterest income increased $737 thousand, or 20.0%, primarily due to higher service charges on deposits, loan servicing fees and gain on sale of loans, offset by lower other income.

Service charges on deposits were $967 thousand, an increase of $410 thousand from $557 thousand, primarily due to an increase in deposit analysis fees from an increase in the number of analysis accounts.
Loan servicing fees were $858 thousand, an increase of $318 thousand from $540 thousand, primarily due to a decrease in servicing fee amortization driven by lower loan payoffs in loan servicing portfolio.
Gain on sale of loans was $2.2 million, an increase of $201 thousand from $2.0 million, primarily due to a higher average premium rate, partially offset by lower sold amount. The Bank sold $34.7 million in SBA loans at an average premium rate of 7.82%, compared to the sale of $40.1 million at an average premium rate of 5.99%.
Other income was $395 thousand, a decrease of $192 thousand from $587 thousand, primarily due to an increase in unrealized loss of CRA-qualified mutual fund driven by market interest rate changes.

Noninterest Expense


($ in thousands)	For the Three Months Ended						% Change 4Q2024 vs.
($ in thousands)	4Q2024		3Q2024		4Q2023		3Q2024		4Q2023
Noninterest Expense
Salaries and employee benefits	$	8,277	$	8,031	$	7,646	3.1	%	8.3	%
Occupancy and equipment		1,682		1,676		1,616	0.4		4.1
Data processing and communication		594		634		644	(6.3	)	(7.8	)
Professional fees		388		346		391	12.1		(0.8	)
FDIC insurance and regulatory assessments		529		391		237	35.3		123.2
Promotion and advertising		82		151		86	(45.7	)	(4.7	)
Directors' fees		151		154		145	(1.9	)	4.1
Foundation donation and other contributions		480		549		524	(12.6	)	(8.4	)
Other expenses		950		788		694	20.6		36.9
Total noninterest expense	$	13,133	$	12,720	$	11,983	3.2	%	9.6	%

Fourth Quarter 2024 vs. Third Quarter 2024

Noninterest expense increased $413 thousand, or 3.2%, primarily due to higher salaries and employee benefits, other expenses, and FDIC insurance and regulatory assessments.

Salaries and employee benefits increased $246 thousand, primarily due to increases in employee incentive accruals.
Other expenses increased $162 thousand, primarily due to an increase in customer services expenses related to the increase in the number of analysis accounts.
FDIC insurance and regulatory assessments increased $138 thousand, primarily due to year end accrual adjustments.

Fourth Quarter 2024 vs. Fourth Quarter 2023

Noninterest expense increased $1.2 million, or 9.6%, primarily due to higher salaries and employee benefits, FDIC insurance and regulatory assessments, and other expenses.

Salaries and employee benefits increased $631 thousand, primarily due to increases in salaries and employee benefits as our number of employees increased to 231 from 222.
FDIC insurance and regulatory assessments increased $292 thousand, primarily due to increases in assessment base and rate from our balance sheet growth and increased reliance on brokered deposits.
Other expenses increased $256 thousand, primarily due to an increase in customer services expenses related to the increase in the number of analysis accounts.

Income Tax Expense

Fourth Quarter 2024 vs. Third Quarter 2024

Income tax expense was $1.7 million, or an effective tax rate of 25.4%, compared to income tax expense of $2.1 million, or an effective tax rate of 28.3%. The decrease in effective tax rate was primarily due to year-end provision adjustments for additional tax benefits from low income housing tax credit fund investments, and adjustments for differences between the prior year tax provision and the final tax returns that were applied in the quarter.

Fourth Quarter 2024 vs. Fourth Quarter 2023

Income tax expense was $1.7 million, resulting in an effective tax rate of 25.4%, compared to income tax expense of $2.1 million, resulting in an effective tax rate of 29.1%. The decrease in effective tax rate was primarily due to year-end provision adjustments for additional tax benefits from low income housing tax credit fund investments, and adjustments for differences between the prior year tax provision and the final tax returns that were applied in the quarter.

BALANCE SHEET HIGHLIGHTS

Loans


($ in thousands)	As of						% Change 4Q2024 vs.
($ in thousands)	4Q2024		3Q2024		4Q2023		3Q2024		4Q2023
CRE loans	$	980,247	$	966,472	$	885,585	1.4	%	10.7	%
SBA loans		253,710		252,379		239,692	0.5		5.8
C&I loans		213,097		212,476		120,970	0.3		76.2
Home mortgage loans		509,524		499,666		518,024	2.0		(1.6	)
Consumer & other loans		274		14		1,574	1,857.1		(82.6	)
Gross loans	$	1,956,852	$	1,931,007	$	1,765,845	1.3	%	10.8	%

The following table presents new loan originations based on loan commitment amounts for the periods indicated:


($ in thousands)	For the Three Months Ended						% Change 4Q2024 vs.
($ in thousands)	4Q2024		3Q2024		4Q2023		3Q2024		4Q2023
CRE loans	$	64,827	$	68,525	$	15,885	(5.4	)%	308.1	%
SBA loans		36,810		46,302		51,855	(20.5	)	(29.0	)
C&I loans		7,783		27,771		15,270	(72.0	)	(49.0	)
Home mortgage loans		17,937		10,105		12,417	77.5		44.5
Consumer & other loans		—		—		1,500	—		(100.0	)
Gross loans	$	127,357	$	152,703	$	96,927	(16.6	)%	31.4	%

The following table presents changes in gross loans by loan activity for the periods indicated:


($ in thousands)	For the Three Months Ended
($ in thousands)		4Q2024			3Q2024			4Q2023
Loan Activities:
Gross loans, beginning	$	1,931,007		$	1,870,106		$	1,759,525
New originations		127,357			152,703			96,927
Purchases		—			862			2,371
Sales		(34,715	)		(35,576	)		(40,122	)
Payoffs		(48,456	)		(29,642	)		(23,590	)
Paydowns		(21,919	)		(25,772	)		(27,471	)
Decrease (increase) in loans held for sale		3,578			(1,674	)		(1,795	)
Total		25,845			60,901			6,320
Gross loans, ending	$	1,956,852		$	1,931,007		$	1,765,845

As of December 31, 2024 vs. September 30, 2024

Gross loans were $1.96 billion as of December 31, 2024, up $25.8 million from September 30, 2024, primarily due to new loan originations, partially offset by loan sales, payoffs and paydowns. New loan originations, loan sales, and loan payoffs and paydowns were $127.4 million, $34.7 million, and $70.4 million, respectively, for the fourth quarter of 2024, compared with $152.7 million, $35.6 million, and $55.4 million, respectively, for the third quarter of 2024.

As of December 31, 2024 vs. December 31, 2023

Gross loans were $1.96 billion as of December 31, 2024, up $191.0 million, from December 31, 2023, primarily due to an increase in new loan originations of $502.8 million, partially offset by loan sales of $127.2 million and loan payoffs and paydowns of $188.2 million.

The following table presents the composition of gross loans by interest rate type accompanied with the weighted average contractual rates as of the periods indicated:


($ in thousands)	As of
	4Q2024				3Q2024				4Q2023
	%		Rate		%		Rate		%		Rate
Fixed rate	33.2	%	5.44	%	35.7	%	5.42	%	35.1	%	5.07	%
Hybrid rate	37.0		5.66		34.7		5.60		33.9		5.15
Variable rate	29.8		8.47		29.6		8.94		31.0		9.15
Gross loans	100.0	%	6.43	%	100.0	%	6.52	%	100.0	%	6.36	%

The following table presents the maturity of gross loans by interest rate type accompanied with the weighted average contractual rates for the periods indicated:


($ in thousands)	As of December 31, 2024
	Within One Year				One Year Through Five Years				After Five Years				Total
	Amount		Rate		Amount		Rate		Amount		Rate		Amount		Rate
Fixed rate	$	164,941	5.86	%	$	276,216	5.45	%	$	207,774	5.08	%	$	648,931	5.44	%
Hybrid rate		—	—			210,510	4.44			513,438	6.17			723,948	5.66
Variable rate		107,591	7.80			137,220	7.98			339,162	8.88			583,973	8.47
Gross loans	$	272,532	6.63	%	$	623,946	5.67	%	$	1,060,374	6.82	%	$	1,956,852	6.43	%

Allowance for Credit Losses

The following table presents allowance for credit losses and provision for credit losses as of and for the periods presented:


($ in thousands)	As of and For the Three Months Ended									Change 4Q2024 vs.
($ in thousands)		4Q2024			3Q2024			4Q2023			3Q2024			4Q2023
Allowance for credit losses on loans, beginning	$	22,960		$	22,760		$	21,617		$	200		$	1,343
Provision for credit losses		1,859			234			537			1,625			1,322
Gross charge-offs		(29	)		(40	)		(236	)		11			207
Gross recoveries		6			6			75			—			(69	)
Net charge-offs		(23	)		(34	)		(161	)		11			138
Allowance for credit losses on loans, ending	$	24,796		$	22,960		$	21,993		$	1,836		$	2,803

Allowance for credit losses on off-balance sheet exposure, beginning	$	672		$	458		$	423		$	214		$	249
Provision for (reversal of) credit losses		(312	)		214			93			(526	)		(405	)
Allowance for credit losses on off-balance sheet exposure, ending	$	360		$	672		$	516		$	(312	)	$	(156	)

Asset Quality


($ in thousands)	As of and For the Three Months Ended									Change 4Q2024 vs.
($ in thousands)		4Q2024			3Q2024			4Q2023		3Q2024		4Q2023
Loans 30-89 days past due and still accruing	$	8,964		$	10,306		$	9,607		(13.0	)%	(6.7	)%
As a % of gross loans		0.46	%		0.53	%		0.54	%	(0.07	)	(0.08	)

Nonperforming loans⁽¹⁾	$	7,820		$	3,620		$	6,082		116.0	%	28.6	%
Nonperforming assets⁽¹⁾		9,057			4,857			6,082		86.5		48.9
Nonperforming loans to gross loans		0.40	%		0.19	%		0.34	%	0.21		0.06
Nonperforming assets to total assets		0.38			0.20			0.28		0.18		0.10

Criticized loans⁽¹⁾⁽²⁾	$	19,570		$	16,500		$	13,349		18.6	%	46.6	%
Criticized loans to gross loans		1.00	%		0.85	%		0.76	%	0.15		0.24

Allowance for credit losses ratios:
As a % of gross loans		1.27	%		1.19	%		1.25	%	0.08	%	0.02	%
As a % of nonperforming loans		317			634			362		(317	)	(45	)
As a % of nonperforming assets		274			473			362		(199	)	(88	)
As a % of criticized loans		127			139			165		(12	)	(38	)
Net charge-offs⁽³⁾ to average gross loans⁽⁴⁾		0.00			0.01			0.04		(0.01	)	(0.04	)

⁽¹⁾	Excludes the guaranteed portion of SBA & USDA loans that are in liquidation totaling $16.3 million, $11.1 million and $2.0 million as of December 31, 2024, September 30, 2024 and December 31, 2023, respectively.
⁽²⁾	Consists of Special Mention, Substandard, Doubtful and Loss categories.
⁽³⁾	Annualized.
⁽⁴⁾	Includes loans held for sale.

Overall, the Bank continued to maintain low levels of nonperforming loans and net charge-offs. Our allowance remained strong with an allowance to gross loans ratio of 1.27%.

Loans 30-89 days past due and still accruing were $9.0 million or 0.46% of gross loans as of December 31, 2024, compared with $10.3 million or 0.53% as of September 30, 2024.
Nonperforming loans were $7.8 million or 0.40% of gross loans as of December 31, 2024, compared with $3.6 million or 0.19% as of September 30, 2024. The increase was mainly driven by three SBA relationships: one isolated fire damage to a hotel property in Tucson, AZ, which the Bank is working with the borrower through a temporary deferment during the repairs, and two separate relationships in apparel business, which the Bank is in the process of liquidating and in negotiation to sell the note to the tenant.
Nonperforming assets were $9.1 million or 0.38% of total assets as of December 31, 2024, compared with $4.9 million or 0.20% as of September 30, 2024. OREO remained the same at $1.2 million as of December 31, 2024 and September 30, 2024, which is secured by a mix-use property in Los Angeles Koreatown with 90% guaranteed by SBA.
Criticized loans were $19.6 million or 1.00% of gross loans as of December 31, 2024, compared with $16.5 million or 0.85% as of September 30, 2024.
Net charge-offs were $23 thousand or 0.00% of average loans in the fourth quarter of 2024, compared to net charge-offs of $34 thousand, or 0.01% of average loans in the third quarter of 2024 and net charge-offs of $161 thousand, or 0.04% of average loans in the fourth quarter of 2023.

Los Angeles Wildfires Impact

The Company's overall exposure from the Los Angeles wildfires is limited to $23.5 million (or 1.3% of net loans) based on zip code. Only three borrowers suffered direct impact from the wildfires, totaling $6.3 million in outstanding principal balance. Of the three borrowers, only two borrowers with combined outstanding principal balance of $2.2 million may require temporary loan payment adjustments. The Company will continue to monitor the loans to timely assess both direct and indirect impacts to the Company's asset quality.

Deposits


($ in thousands)	As of												% Change 4Q2024 vs.
	4Q2024				3Q2024				4Q2023				% Change 4Q2024 vs.
	Amount		%		Amount		%		Amount		%		3Q2024		4Q2023
Noninterest-bearing deposits	$	504,928	24.9	%	$	561,801	27.2	%	$	522,751	28.9	%	(10.1	)%	(3.4	)%
Money market deposits and others		329,095	16.2			343,188	16.6			399,018	22.1		(4.1	)	(17.5	)
Time deposits		1,193,262	58.9			1,159,614	56.2			885,789	49.0		2.9		34.7
Total deposits	$	2,027,285	100.0	%	$	2,064,603	100.0	%	$	1,807,558	100.0	%	(1.8	)%	12.2	%

Estimated uninsured deposits	$	961,687	47.4	%	$	946,406	45.8	%	$	1,156,270	64.0	%	1.6	%	(16.8	)%

As of December 31, 2024 vs. September 30, 2024

Total deposits were $2.03 billion as of December 31, 2024, reflecting a decrease of $37.3 million or 1.8% from September 30, 2024, primarily due to decreases of $56.9 million in noninterest-bearing deposits and $14.1 million in money market deposits, partially offset by an increase of $33.6 million in time deposits. Customers' preference for high-rate deposit products continued to drive the increase in time deposits over money market deposits. The decrease in noninterest-bearing deposits was primarily driven by a significant downward shift in market expectation on the Federal Reserve's future rate cut trajectory and an uncertainty of economic and business outlook. Average balance of noninterest-bearing deposits, however, increased $15.4 million or 2.9% to $543.5 million from $528.1 million continuing the upward trend started from the beginning of 2024.

As of December 31, 2024 vs. December 31, 2023

Total deposits were $2.03 billion as of December 31, 2024, an increase of $219.7 million from December 31, 2023, primarily driven by a $307.5 million increase in time deposits, offset by decreases of $69.9 million in money market deposits and $17.8 million in noninterest-bearing deposits. Noninterest-bearing deposits, as a percentage of total deposits, decreased to 24.9% from 28.9%. The composition shift to time deposits was primarily due to customers' preference for high-rate deposit products driven by market rate increases as a result of the Federal Reserve's rate increases.

The following table sets forth the maturity of time deposits as of December 31, 2024:


	As of December 31, 2024
($ in thousands)	Within Three Months			Three to Six Months			Six to Nine Months			Nine to Twelve Months			After Twelve Months			Total
Time deposits (greater than $250)	$	206,324		$	149,639		$	78,397		$	131,002		$	451		$	565,813
Time deposits ($250 or less)		202,931			123,639			156,542			124,766			19,571			627,449
Total time deposits	$	409,255		$	273,278		$	234,939		$	255,768		$	20,022		$	1,193,262
Weighted average rate		4.89	%		4.86	%		4.77	%		4.25	%		3.98	%		4.71	%

OTHER HIGHLIGHTS

Liquidity

The Company maintains ample access to liquidity, including highly liquid assets on our balance sheet and available unused borrowings from other financial institutions. The following table presents the Company's liquid assets and available borrowings as of dates presented:


($ in thousands)		4Q2024			3Q2024			4Q2023
Liquidity Assets:
Cash and cash equivalents	$	134,943		$	166,756		$	91,216
Available-for-sale debt securities		185,909			199,373			194,250
Liquid assets	$	320,852		$	366,129		$	285,466
Liquid assets to total assets		13.6	%		15.3	%		13.3	%

Available Borrowings:
Federal Home Loan Bank—San Francisco	$	401,900		$	397,617		$	363,615
Federal Reserve Bank		215,115			207,782			182,989
Pacific Coast Bankers Bank		50,000			50,000			50,000
Zions Bank		25,000			25,000			25,000
First Horizon Bank		25,000			25,000			25,000
Total available borrowings	$	717,015		$	705,399		$	646,604
Total available borrowings to total assets		30.3	%		29.5	%		30.1	%

Liquid assets and available borrowings to total deposits		51.2	%		51.9	%		51.6	%

Capital and Capital Ratios

On January 23, 2025, the Company's Board of Directors declared a quarterly cash dividend of $0.12 per share of its common stock. The cash dividend is payable on or about February 20, 2025 to all shareholders of record as of the close of business on February 6, 2025. The payment of the dividend is based primarily on dividends from the Bank to the Company, and future dividends will depend on the Board's assessment of the availability of capital levels to support the ongoing operating capital needs of both the Company and the Bank.

The Company did not repurchase share of its common stock during the fourth quarter of 2024. Since the announcement of the stock repurchase program in August 2023, the Company repurchased a total of 428,628 shares of its common stock at an average repurchase price of $9.37 per share through December 31, 2024.


	OP Bancorp⁽¹⁾		Open Bank		Minimum Well Capitalized Ratio		Minimum Capital Ratio+ Conservation Buffer⁽²⁾
Risk-Based Capital Ratios:
Total risk-based capital ratio	12.60	%	12.50	%	10.00	%	10.50	%
Tier 1 risk-based capital ratio	11.35		11.25		8.00		8.50
Common equity tier 1 ratio	11.35		11.25		6.50		7.00
Leverage ratio	9.27		9.20		5.00		4.00

⁽¹⁾	The capital requirements are only applicable to the Bank, and the Company's ratios are included for comparison purpose.
⁽²⁾	An additional 2.5% capital conservation buffer above the minimum capital ratios are required in order to avoid limitations on distributions, including dividend payments and certain discretionary bonuses to executive officers.


OP Bancorp										Change 4Q2024 vs.
OP Bancorp		4Q2024			3Q2024			4Q2023		3Q2024		4Q2023
Risk-Based Capital Ratios:
Total risk-based capital ratio		12.60	%		12.79	%		13.77	%	(0.19	)%	(1.17	)%
Tier 1 risk-based capital ratio		11.35			11.57			12.52		(0.22	)	(1.17	)
Common equity tier 1 ratio		11.35			11.57			12.52		(0.22	)	(1.17	)
Leverage ratio		9.27			9.30			9.57		(0.03	)	(0.30	)
Risk-weighted Assets ($ in thousands)	$	1,941,549		$	1,876,698		$	1,667,067		3.46		16.46

ABOUT OP BANCORP

OP Bancorp, the holding company for Open Bank (the "Bank"), is a California corporation whose common stock is quoted on the Nasdaq Global Market under the ticker symbol, "OPBK." The Bank is engaged in the general commercial banking business in Los Angeles, Orange, and Santa Clara Counties in California, the Dallas metropolitan area in Texas, and Clark County in Nevada and is focused on serving the banking needs of small- and medium-sized businesses, professionals, and residents with a particular emphasis on Korean and other ethnic minority communities. The Bank currently operates eleven full-service branch offices in Downtown Los Angeles, Los Angeles Fashion District, Los Angeles Koreatown, Cerritos, Gardena, Buena Park, and Santa Clara, California, Carrollton, Texas and Las Vegas, Nevada. The Bank also has five loan production offices in Pleasanton, California, Atlanta, Georgia, Aurora, Colorado, Lynnwood, Washington, and Fairfax, Virginia. The Bank commenced its operations on June 10, 2005 as First Standard Bank and changed its name to Open Bank in October 2010. Its headquarters is located at 1000 Wilshire Blvd., Suite 500, Los Angeles, California 90017. Phone 213.892.9999; www.myopenbank.com.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain matters set forth herein constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, including forward-looking statements relating to the Company's current business plans and expectations regarding future operating results. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from those projected. These risks and uncertainties, some of which are beyond our control, include, but are not limited to: the impacts of recent wildfires affecting the Los Angeles Basin, which have dramatically affected our customers, communities and employees, and which will have as-yet-unquantified effects upon the value of our loans, the adequacy of our loan loss reserves, and the value of the associated collateral; the effects of substantial fluctuations in, and continuing elevated levels of, interest rates on our borrowers' ability to perform in accordance with the terms of their loans and on our deposit customers' expectation for higher rates on deposit products; cybersecurity risks, including the potential for the occurrence of successful cyberattacks and our ability to prevent and to mitigate the harms resulting from any such attacks; the geographic concentration of our customer base and our earning assets; infrastructure risks and similar circumstances that affect our and our customers' ability to communicate and to engage in routine online banking activities; business and economic conditions, particularly those affecting the financial services industry and our primary market areas; risks of international conflict, terrorism, civil unrest and domestic instability; the continuing effects of inflation and monetary policies, particularly those relating to the decisions and indicators of intent expressed by the Federal Reserve Open Markets Committee, as those circumstances impact our operations and our current and prospective borrowers and depositors; our ability to balance deposit liabilities and liquidity sources (including our ability to reprice those instruments and balancing our borrowings and investments to keep pace with changing market conditions) so as to meet current and expected withdrawals while promoting strong earning capacity; our ability to manage our credit risk successfully and to assess, adjust and monitor the sufficiency of our allowance for credit losses; factors that can impact the performance of our loan portfolio, including real estate values and liquidity in our primary market areas, the financial health of our commercial borrowers, the success of construction projects that we finance, including any loans acquired in acquisition transactions; the impacts of credit quality on our earnings and the related effects of increases to the reserve on our net income; our ability effectively to execute our strategic plan and manage our growth; interest rate fluctuations, which could have an adverse effect on our profitability; external economic and/or market factors, such as changes in monetary and fiscal policies and laws, including inflation or deflation, changes in the demand for loans, and fluctuations in consumer spending, borrowing and savings habits, which may have an adverse impact on our financial condition; continued or increasing competition from other banks and from credit unions and non-bank financial services companies, many of which are subject to less restrictive or less costly regulations than we are; challenges arising from unsuccessful attempts to expand into new geographic markets, products, or services; practical and regulatory constraints on the ability of Open Bank to pay dividends to us; our ability to protect and to use our trademarks and related intellectual property; increased capital requirements imposed by banking regulators, which may require us to raise capital at a time when capital is not available on favorable terms or at all; a failure in the internal controls we have implemented to address the risks inherent to the business of banking; including internal controls that affect the reliability of our publicly reported financial statements; inaccuracies in our assumptions about future events, which could result in material differences between our financial projections and actual financial performance, particularly with respect to the effects of predictions of future economic conditions as those circumstances affect our estimates for the adequacy of our allowance for credit losses and the related provision expense; changes in our management personnel or our inability to retain motivate and hire qualified management personnel; disruptions, security breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems; disruptions, security breaches, or other adverse events affecting the third-party vendors who perform several of our critical processing functions; an inability to keep pace with the rate of technological advances due to a lack of resources to invest in new technologies; risks related to potential acquisitions; political developments, uncertainties or instability, catastrophic events, or natural disasters, such as earthquakes, fires, drought, pandemic diseases (such as the coronavirus) or extreme weather events (including but not limited to the above-described wildfires affecting the Los Angeles Metropolitan Area), any of which may affect services we use or affect our customers, employees or third parties with which we conduct business; incremental costs and obligations associated with operating as a public company; the impact of any claims or legal actions to which we may be subject, including any effect on our reputation; compliance with governmental and regulatory requirements, including the Dodd-Frank Act and others relating to banking, consumer protection, securities and tax matters, and our ability to maintain licenses required in connection with commercial mortgage origination, sale and servicing operations; changes in federal tax law or policy; and our ability the manage the foregoing and other factors set forth in the Company's public reports. We describe these and other risks that could affect our results in Item 1A. "Risk Factors," of our latest Annual Report on Form 10-K for the year ended December 31, 2023 and in our subsequent filings with the Securities and Exchange Commission.

CONSOLIDATED BALANCE SHEETS (unaudited)


($ in thousands)	As of									% Change 4Q2024 vs.
($ in thousands)		4Q2024			3Q2024			4Q2023		3Q2024		4Q2023
Assets
Cash and due from banks	$	12,268		$	24,519		$	16,948		(50.0	)%	(27.6	)%
Interest-bearing deposits in other banks		122,675			142,237			74,268		(13.8	)	65.2
Cash and cash equivalents		134,943			166,756			91,216		(19.1	)	47.9
Available-for-sale debt securities, at fair value		185,909			199,373			194,250		(6.8	)	(4.3	)
Other investments		16,437			16,520			16,276		(0.5	)	1.0
Loans held for sale		4,581			8,160			1,795		(43.9	)	155.2
CRE loans		980,247			966,472			885,585		1.4		10.7
SBA loans		253,710			252,379			239,692		0.5		5.8
C&I loans		213,097			212,476			120,970		0.3		76.2
Home mortgage loans		509,524			499,666			518,024		2.0		(1.6	)
Consumer loans		274			14			1,574		n/m		(82.6	)
Gross loans receivable		1,956,852			1,931,007			1,765,845		1.3		10.8
Allowance for credit losses		(24,796	)		(22,960	)		(21,993	)	8.0		12.7
Net loans receivable		1,932,056			1,908,047			1,743,852		1.3		10.8
Premises and equipment, net		5,449			4,961			5,248		9.8		3.8
Accrued interest receivable, net		9,188			9,479			8,259		(3.1	)	11.2
Servicing assets		10,834			10,877			11,741		(0.4	)	(7.7	)
Company owned life insurance		22,912			22,739			22,233		0.8		3.1
Deferred tax assets, net		14,893			12,288			13,309		21.2		11.9
Other real estate owned		1,237			1,237			—		—		n/m
Operating right-of-use assets		7,415			7,870			8,497		(5.8	)	(12.7	)
Other assets		20,159			19,673			31,054		2.5		(35.1	)
Total assets	$	2,366,013		$	2,387,980		$	2,147,730		(0.9	)%	10.2	%
Liabilities and Shareholders' Equity
Liabilities:
Noninterest-bearing	$	504,928		$	561,801		$	522,751		(10.1	)%	(3.4	)%
Money market and others		329,095			343,188			399,018		(4.1	)	(17.5	)
Time deposits greater than $250		565,813			564,547			433,892		0.2		30.4
Other time deposits		627,449			595,067			451,897		5.4		38.8
Total deposits		2,027,285			2,064,603			1,807,558		(1.8	)	12.2
Federal Home Loan Bank advances		95,000			75,000			105,000		26.7		(9.5	)
Accrued interest payable		16,067			19,483			12,628		(17.5	)	27.2
Operating lease liabilities		7,857			8,417			9,341		(6.7	)	(15.9	)
Other liabilities		14,811			16,874			20,577		(12.2	)	(28.0	)
Total liabilities		2,161,020			2,184,377			1,955,104		(1.1	)	10.5
Shareholders' equity:
Common stock		73,697			73,697			76,280		—		(3.4	)
Additional paid-in capital		11,928			11,713			10,942		1.8		9.0
Retained earnings		134,781			131,588			120,855		2.4		11.5
Accumulated other comprehensive loss		(15,413	)		(13,395	)		(15,451	)	15.1		(0.2	)
Total shareholders' equity		204,993			203,603			192,626		0.7		6.4
Total liabilities and shareholders' equity	$	2,366,013		$	2,387,980		$	2,147,730		(0.9	)%	10.2	%

CONSOLIDATED STATEMENTS OF INCOME (unaudited)


($ in thousands, except share and per share data)	For the Three Months Ended						% Change 4Q2024 vs.
($ in thousands, except share and per share data)		4Q2024		3Q2024		4Q2023	3Q2024		4Q2023
Interest income
Interest and fees on loans	$	31,729	$	31,885	$	28,914	(0.5	)%	9.7	%
Interest on available-for-sale debt securities		1,551		1,626		1,484	(4.6	)	4.5
Other interest income		1,771		1,788		1,385	(1.0	)	27.9
Total interest income		35,051		35,299		31,783	(0.7	)	10.3
Interest expense
Interest on deposits		17,182		17,921		14,127	(4.1	)	21.6
Interest on borrowings		940		872		1,426	7.8		(34.1	)%
Total interest expense		18,122		18,793		15,553	(3.6	)	16.5
Net interest income		16,929		16,506		16,230	2.6		4.3
Provision for credit losses		1,547		448		630	245.3		145.6
Net interest income after provision for credit losses		15,382		16,058		15,600	(4.2	)	(1.4	)
Noninterest income
Service charges on deposits		967		889		557	8.8		73.6
Loan servicing fees, net of amortization		858		693		540	23.8		58.9
Gain on sale of loans		2,197		2,088		1,996	5.2		10.1
Other income		395		570		587	(30.7	)	(32.7	)
Total noninterest income		4,417		4,240		3,680	4.2		20.0
Noninterest expense
Salaries and employee benefits		8,277		8,031		7,646	3.1		8.3
Occupancy and equipment		1,682		1,676		1,616	0.4		4.1
Data processing and communication		594		634		644	(6.3	)	(7.8	)
Professional fees		388		346		391	12.1		(0.8	)
FDIC insurance and regulatory assessments		529		391		237	35.3		123.2
Promotion and advertising		82		151		86	(45.7	)	(4.7	)
Directors' fees		151		154		145	(1.9	)	4.1
Foundation donation and other contributions		480		549		524	(12.6	)	(8.4	)
Other expenses		950		788		694	20.6		36.9
Total noninterest expense		13,133		12,720		11,983	3.2		9.6
Income before income tax expense		6,666		7,578		7,297	(12.0	)	(8.6	)
Income tax expense		1,695		2,142		2,125	(20.9	)	(20.2	)
Net income	$	4,971	$	5,436	$	5,172	(8.6	)%	(3.9	)%

Book value per share	$	13.83	$	13.75	$	12.84	0.6	%	7.7	%
Earnings per share - basic		0.33		0.36		0.34	(8.3	)	(2.9	)
Earnings per share - diluted		0.33		0.36		0.34	(8.3	)	(2.9	)

Shares of common stock outstanding, at period end		14,819,866		14,811,671		15,000,436	0.1	%	(1.2	)%
Weighted average shares:
- Basic		14,816,416		14,812,118		15,027,110	—	%	(1.4	)%
- Diluted		14,816,416		14,812,118		15,034,822	—		(1.5	)

KEY RATIOS


	For the Three Months Ended						% Change 4Q2024 vs.
	4Q2024		3Q2024		4Q2023		3Q2024		4Q2023
Return on average assets (ROA)⁽¹⁾	0.84	%	0.94	%	0.96	%	(0.1	)%	(0.1	)%
Return on average equity (ROE)⁽¹⁾	9.75		10.95		11.18		(1.2	)	(1.4	)
Net interest margin⁽¹⁾	2.96		2.95		3.12		—		(0.2	)
Efficiency ratio	61.52		61.31		60.19		0.2		1.3

Total risk-based capital ratio	12.60	%	12.79	%	13.77	%	(0.2	)%	(1.2	)%
Tier 1 risk-based capital ratio	11.35		11.57		12.52		(0.2	)	(1.2	)
Common equity tier 1 ratio	11.35		11.57		12.52		(0.2	)	(1.2	)
Leverage ratio	9.27		9.30		9.57		—		(0.3	)

⁽¹⁾	Annualized.

CONSOLIDATED STATEMENTS OF INCOME (unaudited)


($ in thousands, except share and per share data)	For the Twelve Months Ended
($ in thousands, except share and per share data)	4Q2024		4Q2023		% Change
Interest income
Interest and fees on loans	$	124,361	$	110,463	12.6	%
Interest on available-for-sale debt securities		6,227		6,131	1.6
Other interest income		7,032		5,071	38.7
Total interest income		137,620		121,665	13.1
Interest expense
Interest on deposits		68,121		49,435	37.8
Interest on borrowings		3,891		3,543	9.8
Total interest expense		72,012		52,978	35.9
Net interest income		65,608		68,687	(4.5	)
Provision for credit losses		2,757		1,651	67.0
Net interest income after provision for credit losses		62,851		67,036	(6.2	)
Noninterest income
Service charges on deposits		3,261		2,123	53.6	%
Loan servicing fees, net of amortization		2,898		2,449	18.3
Gain on sale of loans		8,313		7,843	6.0
Other income		1,955		1,766	10.7
Total noninterest income		16,427		14,181	15.8
Noninterest expense
Salaries and employee benefits		31,717		29,593	7.2
Occupancy and equipment		6,673		6,490	2.8
Data processing and communication		2,245		2,109	6.4
Professional fees		1,535		1,571	(2.3	)
FDIC insurance and regulatory assessments		1,672		1,457	14.8
Promotion and advertising		533		614	(13.2	)
Directors' fees		640		680	(5.9	)
Foundation donation and other contributions		2,108		2,400	(12.2	)
Other expenses		3,076		2,812	9.4
Total noninterest expense		50,199		47,726	5.2
Income before income tax expense		29,079		33,491	(13.2	)
Income tax expense		8,010		9,573	(16.3	)
Net income	$	21,069	$	23,918	(11.9	)%

Book value per share	$	13.83	$	12.84	7.7	%
Earnings per share - basic		1.39		1.55	(10.3	)
Earnings per share - diluted		1.39		1.55	(10.3	)

Shares of common stock outstanding, at period end		14,819,866		15,000,436	(1.2	)%
Weighted average shares:
- Basic		14,871,876		15,149,597	(1.8	)%
- Diluted		14,871,876		15,158,857	(1.9	)

KEY RATIOS


	For the Twelve Months Ended
	4Q2024		4Q2023		% Change
Return on average assets (ROA)	0.92	%	1.13	%	(0.2	)%
Return on average equity (ROE)	10.68		13.05		(2.4	)
Net interest margin	2.99		3.37		(0.4	)
Efficiency ratio	61.19		57.59		3.6

Total risk-based capital ratio	12.60	%	13.77	%	(1.2	)%
Tier 1 risk-based capital ratio	11.35		12.52		(1.2	)
Common equity tier 1 ratio	11.35		12.52		(1.2	)
Leverage ratio	9.27		9.57		(0.3	)

ASSET QUALITY


($ in thousands)	As of and For the Three Months Ended
($ in thousands)		4Q2024			3Q2024			4Q2023
Nonaccrual loans⁽¹⁾	$	7,820		$	3,620		$	6,082
Loans 90 days or more past due, accruing		—			—			—
Nonperforming loans		7,820			3,620			6,082
OREO		1,237			1,237			—
Nonperforming assets	$	9,057		$	4,857		$	6,082

Criticized loans by risk categories:
Special mention loans	$	6,309		$	4,540		$	1,428
Classified loans⁽¹⁾⁽²⁾		13,261			11,960			11,921
Total criticized loans	$	19,570		$	16,500		$	13,349

Criticized loans by loan type:
CRE loans	$	9,042		$	5,249		$	4,995
SBA loans		10,128			10,144			5,864
C&I loans		400			1,107			—
Home mortgage loans		—			—			2,490
Total criticized loans	$	19,570		$	16,500		$	13,349

Nonperforming loans / gross loans		0.40	%		0.19	%		0.34	%
Nonperforming assets / gross loans plus OREO		0.46			0.25			0.34
Nonperforming assets / total assets		0.38			0.20			0.28
Classified loans / gross loans		0.68			0.62			0.68
Criticized loans / gross loans		1.00			0.85			0.76

Allowance for credit losses ratios:
As a % of gross loans		1.27	%		1.19	%		1.25	%
As a % of nonperforming loans		317			634			362
As a % of nonperforming assets		274			473			362
As a % of classified loans		187			192			184
As a % of criticized loans		127			139			165

Net charge-offs	$	23		$	34		$	161
Net charge-offs⁽³⁾ to average gross loans⁽⁴⁾		0.00	%		0.01	%		0.04	%

⁽¹⁾	Excludes the guaranteed portion of SBA & USDA loans that are in liquidation totaling $16.3 million, $11.1 million and $2.0 million as of December 31, 2024, September 30, 2024 and December 31, 2023, respectively.
⁽²⁾	Consists of Substandard, Doubtful and Loss categories.
⁽³⁾	Annualized.
⁽⁴⁾	Includes loans held for sale.


($ in thousands)	4Q2024		3Q2024		4Q2023
Accruing delinquent loans 30-89 days past due
30-59 days	$	3,159	$	4,095	$	5,945
60-89 days		5,805		6,211		3,662
Total	$	8,964	$	10,306	$	9,607

AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS


	For the Three Months Ended
	4Q2024						3Q2024						4Q2023
($ in thousands)	Average Balance		Interest and Fees		Yield/ Rate⁽¹⁾		Average Balance		Interest and Fees		Yield/ Rate⁽¹⁾		Average Balance		Interest and Fees		Yield/ Rate⁽¹⁾
Interest-earning assets:
Interest-bearing deposits in other banks	$	120,170	$	1,456	4.74	%	$	109,003	$	1,474	5.29	%	$	78,496	$	1,076	5.36	%
Federal funds sold and other investments		16,478		315	7.63			16,432		314	7.65			16,115		309	7.66
Available-for-sale debt securities, at fair value		193,738		1,551	3.20			199,211		1,626	3.26			189,462		1,484	3.13
CRE loans		960,639		14,653	6.07			944,818		14,759	6.21			892,092		13,104	5.83
SBA loans		269,842		6,542	9.65			270,282		7,107	10.46			255,692		7,055	10.95
C&I loans		217,816		4,086	7.46			187,163		3,642	7.74			122,950		2,416	7.80
Home mortgage loans		499,151		6,441	5.16			503,148		6,364	5.06			515,840		6,315	4.90
Consumer loans		205		7	13.55			541		13	9.37			966		24	9.92
Loans⁽²⁾		1,947,653		31,729	6.49			1,905,952		31,885	6.66			1,787,540		28,914	6.43
Total interest-earning assets		2,278,039		35,051	6.12			2,230,598		35,299	6.30			2,071,613		31,783	6.10
Noninterest-earning assets		85,218						88,747						86,874
Total assets	$	2,363,257					$	2,319,345					$	2,158,487

Interest-bearing liabilities:
Money market deposits and others	$	335,197	$	3,100	3.68	%	$	343,429	$	3,601	4.17	%	$	377,304	$	3,993	4.20	%
Time deposits		1,151,112		14,082	4.87			1,127,078		14,320	5.05			866,142		10,134	4.64
Total interest-bearing deposits		1,486,309		17,182	4.60			1,470,507		17,921	4.85			1,243,446		14,127	4.51
Borrowings		86,525		940	4.32			80,326		872	4.32			118,764		1,426	4.76
Total interest-bearing liabilities		1,572,834		18,122	4.58			1,550,833		18,793	4.82			1,362,210		15,553	4.53
Noninterest-bearing liabilities:
Noninterest-bearing deposits		543,546						528,126						569,965
Other noninterest-bearing liabilities		42,925						41,892						41,312
Total noninterest-bearing liabilities		586,471						570,018						611,277
Shareholders' equity		203,952						198,494						185,000
Total liabilities and shareholders' equity	$	2,363,257						2,319,345						2,158,487

Net interest income / interest rate spreads			$	16,929	1.54	%			$	16,506	1.48	%			$	16,230	1.57	%
Net interest margin					2.96	%					2.95	%					3.12	%

Cost of deposits & cost of funds:
Total deposits / cost of deposits	$	2,029,855	$	17,182	3.37	%	$	1,998,633	$	17,921	3.57	%	$	1,813,411	$	14,127	3.09	%
Total funding liabilities / cost of funds		2,116,380		18,122	3.41			2,078,959		18,793	3.60			1,932,175		15,553	3.19

⁽¹⁾	Annualized.
⁽²⁾	Includes loans held for sale.


	For the Twelve Months Ended
	4Q2024						4Q2023
($ in thousands)	Average Balance		Interest and Fees		Yield/ Rate		Average Balance		Interest and Fees		Yield/ Rate
Interest-earning assets:
Interest-bearing deposits in other banks	$	109,579	$	5,766	5.26	%	$	78,676	$	4,040	5.14	%
Federal funds sold and other investments		16,371		1,266	7.74			14,963		1,031	6.89
Available-for-sale debt securities, at fair value		194,969		6,227	3.19			202,167		6,131	3.03
CRE loans		929,890		56,883	6.12			857,124		48,312	5.64
SBA loans		263,442		27,978	10.62			260,507		28,514	10.95
C&I loans		178,533		13,765	7.71			119,135		9,189	7.71
Home mortgage loans		504,030		25,648	5.09			507,125		24,384	4.81
Consumer & other loans		835		87	10.32			987		64	6.51
Loans⁽¹⁾		1,876,730		124,361	6.63			1,744,878		110,463	6.33
Total interest-earning assets		2,197,649		137,620	6.26			2,040,684		121,665	5.96
Noninterest-earning assets		87,745						84,757
Total assets	$	2,285,394					$	2,125,441

Interest-bearing liabilities:
Money market deposits and others	$	346,104	$	14,135	4.08	%	$	374,116	$	13,830	3.70	%
Time deposits		1,084,107		53,986	4.98			841,804		35,605	4.23
Total interest-bearing deposits		1,430,211		68,121	4.76			1,215,920		49,435	4.07
Borrowings		88,186		3,891	4.41			77,114		3,543	4.59
Total interest-bearing liabilities		1,518,397		72,012	4.74			1,293,034		52,978	4.10
Noninterest-bearing liabilities:
Noninterest-bearing deposits		528,877						613,797
Other noninterest-bearing liabilities		40,839						35,377
Total noninterest-bearing liabilities		569,716						649,174
Shareholders' equity		197,281						183,233
Total liabilities and shareholders' equity	$	2,285,394						2,125,441

Net interest income / interest rate spreads			$	65,608	1.52	%			$	68,687	1.86	%
Net interest margin					2.99	%					3.37	%

Cost of deposits & cost of funds:
Total deposits / cost of deposits	$	1,959,088	$	68,121	3.48	%		1,829,717	$	49,435	2.70	%
Total funding liabilities / cost of funds		2,047,274		72,012	3.52			1,906,831		52,978	2.78

⁽¹⁾	Includes loans held for sale.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250123018544/en/

Investor Relations

OP Bancorp

Christine Oh

EVP & CFO

213.892.1192

[email protected]

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