OP Bancorp Reports First Quarter 2026 Net Income of $7.2 Million, Diluted EPS of $0.48

4/23/26 4:30:00 PM ET

Major Banks

Finance

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compared with Fourth quarter 2025 net income of $7.0 million, diluted EPS of $0.47, and first quarter 2025 net income of $5.6 million, diluted EPS of $0.37

Higher revenue; improved operating efficiency

OP Bancorp (the "Company") (NASDAQ:OPBK), parent company of Open Bank, today reported:


($ in thousands, except per share data)	As of and For the Quarter									First Quarter Highlights
($ in thousands, except per share data)		1Q2026			4Q2025			1Q2025		Comparisons reflect 1Q26 vs. 4Q25
Income Statement:										Income Statement
Net interest income	$	20,523		$	20,863		$	17,418		Revenue continued to grow. Net income increased 3%, benefiting from higher revenue and reductions in both provision and noninterest expenses. Diluted EPS improved modestly by $0.01.
Noninterest income		4,032			3,418			4,816
Revenue		24,555			24,281			22,234
Provision for credit losses		412			463			736
Noninterest expense		14,233			14,293			13,814
Net income	$	7,234		$	7,038		$	5,560
Diluted Earnings Per Share ("EPS")	$	0.48		$	0.47		$	0.37
Net interest margin ⁽¹⁾		3.19	%		3.25	%		3.01	%
Efficiency ratio ⁽²⁾		57.97			58.87			62.13
Balance Sheet:										Balance Sheet
Average loans ⁽³⁾	$	2,226,749		$	2,204,232		$	2,005,044		Average loans increased 1%. Average deposits increased 2%.
Average deposits		2,300,455			2,264,990			2,083,890		Average loans increased 1%. Average deposits increased 2%.
Credit Quality:										Credit Quality
Net (recoveries) charge-offs ⁽¹⁾ to average gross loans		(0.01	)%		(0.03	)%		0.02	%	Net charge-offs remained at a low level. Allowance for credit losses to gross loans remained stable.
Allowance for credit losses on loans to gross loans		1.27			1.28			1.24
Selected Ratios:										Performance and Capital
Book value per share	$	15.62		$	15.31		$	14.09		Book value per share continued to rise, reflecting the Company's growing net worth.
Return on average assets ("ROAA") ⁽¹⁾		1.08	%		1.07	%		0.92	%	ROAA, ROAE and stockholders' equity to asset ratios improved, reflecting stable profitability and more efficient utilization of assets and equity.
Return on average equity ("ROAE") ⁽¹⁾		12.56			12.53			10.73
Stockholders' equity to asset ratio		8.62			8.60			8.36
Common equity tier 1 capital ("CET1")		10.82			10.93			10.97		CET1 remained robust, reflecting a solid capital position.

(1)		Annualized.
(2)		Represents noninterest expense divided by the sum of net interest income and noninterest income.
(3)		Includes loans held-for-sale.

Sang K. Oh, President and Chief Executive Officer:

"We continued to deliver strong results that highlight the strength and resilience of our Company. Revenue grew steadily, supported by continued loan and deposit growth, along with higher noninterest income from increased gains on loan sales. Our disciplined expense management further enhanced performance, and overall credit quality remained sound and manageable with low net charge-offs. With a solid capital base, we are well-positioned for sustainable growth as we move into 2026," said Sang K. Oh, President and Chief Executive Officer.

INCOME STATEMENT HIGHLIGHTS

Net Interest Income and Net Interest Margin


($ in thousands)	For the Three Months Ended						% Change 1Q2026 vs.
($ in thousands)		1Q2026		4Q2025		1Q2025	4Q2025		1Q2025
Interest Income
Interest income	$	38,537	$	39,282	$	34,859	(2	)%	11	%
Interest expense		18,014		18,419		17,441	(2	)	3
Net interest income	$	20,523	$	20,863	$	17,418	(2	)%	18	%


($ in thousands)	For the Three Months Ended												Average Yield/Rate Change 1Q2026 vs.
	1Q2026				4Q2025				1Q2025				Average Yield/Rate Change 1Q2026 vs.
	Interest Income/ Expense		Average Yield/Rate⁽¹⁾		Interest Income/ Expense		Average Yield/Rate⁽¹⁾		Interest Income/ Expense		Average Yield/Rate⁽¹⁾		4Q2025	1Q2025
Interest-earning Assets:
Loans	$	34,879	6.33	%	$	35,921	6.48	%	$	31,689	6.39	%	(15) bps	(6) bps
Total interest-earning assets		38,537	6.00			39,282	6.11			34,859	6.04		(11) bps	(4) bps
Interest-bearing Liabilities:
Interest-bearing deposits		16,845	3.83			17,324	3.97			16,608	4.31		(14) bps	(48) bps
Total interest-bearing liabilities		18,014	3.88			18,419	3.99			17,441	4.31		(11) bps	(43) bps
Ratios:
Net interest income / interest rate spreads		20,523	2.12			20,863	2.12			17,418	1.73		— bps	39 bps
Net interest margin			3.19				3.25				3.01		(6) bps	18 bps
Total deposits / cost of deposits		16,845	2.97			17,324	3.03			16,608	3.23		(6) bps	(26) bps
Total funding liabilities / cost of funds		18,014	3.04			18,419	3.09			17,441	3.27		(5) bps	(23) bps

(1)

Annualized


($ in thousands)	For the Three Months Ended															Average Yield Change 1Q2026 vs.
	1Q2026					4Q2025					1Q2025					Average Yield Change 1Q2026 vs.
	Interest Income			Average Yield⁽¹⁾		Interest Income			Average Yield⁽¹⁾		Interest Income			Average Yield⁽¹⁾		4Q2025	1Q2025
Loan Yield Component:
Contractual interest rate	$	34,254		6.22	%	$	35,010		6.31	%	$	31,323		6.32	%	(9) bps	(10) bps
Accretion of SBA loan discount⁽²⁾		815		0.15			966		0.17			683		0.14		(2) bps	1 bps
Amortization of net deferred fees		127		0.02			(17	)	(0.00	)		(106	)	(0.02	)	2 bps	4 bps
Amortization of premium		(312	)	(0.06	)		(301	)	(0.05	)		(329	)	(0.07	)	(1) bps	1 bps
Amortization of premium - Home mortgage payoffs		(186	)	(0.03	)		(123	)	(0.02	)		(162	)	(0.03	)	(1) bps	— bps
Net interest recognized on nonaccrual loans		(94	)	(0.02	)		105		0.02			132		0.02		(4) bps	(4) bps
Prepayment penalty income and other fees⁽³⁾		275		0.05			281		0.05			148		0.03		— bps	2 bps
Yield on loans	$	34,879		6.33	%	$	35,921		6.48	%	$	31,689		6.39	%	(15) bps	(6) bps

(1)		Annualized.
(2)		Includes discount accretion from SBA loan payoffs of $370 thousand, $505 thousand and $193 thousand for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively.
(3)		Includes prepayment penalty income of $98 thousand, $145 thousand and $67 thousand for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively, from Commercial Real Estate ("CRE") and SBA loans.

First Quarter 2026 vs. Fourth Quarter 2025

Net interest income declined by $340 thousand, or 2%, primarily due to lower loan yields and two fewer accrual days, partially offset by balance-sheet growth and a special dividend on FHLB stock. As a result, the net interest margin contracted by 6 basis point to 3.19%.

Loans: Interest income decreased by $1.0 million, driven largely by a 15-basis-point decline in loan yields and two fewer accrual days, partially offset by a $22.5 million increase in average loan balances. The lower yield reflects the downward repricing of adjustable-rate loans and reduced rates on new originations following last year's federal funds rate cuts. In addition, higher interest income reversals related to loans moving to nonaccrual status compared to the prior quarter further contributed to the decline in loan yields.
Deposits: Interest expense decreased by $479 thousand, primarily due to a 14-basis-point reduction in interest-bearing deposit costs and two fewer accrual days. This decrease was partially offset by a $51.4 million increase in average interest-bearing deposit balances.
Other investments: Interest income increased by $250 thousand, mainly due to a special dividend received on FHLB stock.

First Quarter 2026 vs. First Quarter 2025

Net interest income increased by $3.1 million, or 18%, driven primarily by balance-sheet growth and lower deposit rates. As a result, the net interest margin expanded by 18 basis points to 3.19%.

Loans: Interest income rose by $3.2 million, largely attributable to a $221.7 million increase in average loan balances, reflecting strong loan production and portfolio growth.
Deposits: Interest expense increased by $237 thousand, mainly due to a $221.9 million increase in average interest-bearing deposit balances. This increase was mostly offset by a 48-basis-point reduction in interest-bearing deposit costs, driven by the repricing of time deposits following the federal funds rate cuts.

Provision for Credit Losses


($ in thousands)	For the Three Months Ended							$ Change 1Q2026 vs.
($ in thousands)		1Q2026		4Q2025			1Q2025		4Q2025			1Q2025
Provision for credit losses on loans	$	400	$	518		$	687	$	(118	)	$	(287	)
Reversal of credit losses on off-balance sheet exposure		12		(55	)		49		67			(37	)
Provision for credit losses	$	412	$	463		$	736	$	(51	)	$	(324	)

First Quarter 2026 vs. Fourth Quarter 2025

Provision for credit losses on loans decreased modestly by $118 thousand, primarily reflecting lower quantitative reserves driven by changes in portfolio conditions, partially offset by higher specific reserves related to increased nonaccrual CRE loans.

First Quarter 2026 vs. First Quarter 2025

Provision for credit losses on loans decreased by $287 thousand, primarily due to lower qualitative reserves resulting from shifts in portfolio characteristics, partially offset by the higher specific reserves associated with additional nonaccrual CRE loans.

Noninterest Income


($ in thousands)	For the Three Months Ended						% Change 1Q2026 vs.
($ in thousands)		1Q2026		4Q2025		1Q2025	4Q2025		1Q2025
Noninterest Income
Service charges on deposits	$	463	$	462	$	1,000	0	%	(54	)%
Loan servicing fees, net of amortization		722		650		1,007	11		(28	)
Gains on sale of loans		2,050		1,573		2,019	30		2
Other income		797		733		790	9		1
Total noninterest income	$	4,032	$	3,418	$	4,816	18	%	(16	)%

First Quarter 2026 vs. Fourth Quarter 2025

Noninterest income increased by $614 thousand, or 18%, primarily driven by higher gains on sale of loans.

Gains on Sale of Loans: Increased by $477 thousand, driven by higher premium rates and stronger SBA loan sale activity. The Bank sold $32.2 million in SBA loans at an average premium rate of 8.27%, compared with $28.5 million sold at an average premium rate of 6.98% in the prior period.

First Quarter 2026 vs. First Quarter 2025

Noninterest income decreased by $784 thousand, or 16%, primarily due to lower service charges on deposits and reduced loan servicing fees.

Service Charges on Deposits: Decreased by $537 thousand, largely reflecting lower balances in existing business analysis accounts and closure of certain currency exchange-related accounts during the third quarter of 2025.
Loan Servicing Fees, net of amortization: Decreased by $285 thousand, mainly due to higher amortization of servicing assets, driven by elevated payoff activity within the servicing portfolio.

Noninterest Expense


($ in thousands)	For the Three Months Ended							% Change 1Q2026 vs.
($ in thousands)		1Q2026		4Q2025			1Q2025	4Q2025		1Q2025
Noninterest Expense
Salaries and employee benefits	$	9,276	$	9,244		$	8,776	0	%	6	%
Occupancy and equipment		1,811		1,919			1,581	(6	)	15
Data processing and communication		411		591			296	(30	)	39
Professional fees		399		549			407	(27	)	(2	)
FDIC insurance and regulatory assessments		418		362			487	15		(14	)
Promotion and advertising		120		(9	)		156	NM		(23	)
Directors' fees		144		148			180	(3	)	(20	)
Foundation donation and other contributions		725		707			556	3		30
Other expenses		929		782			1,375	19		(32	)
Total noninterest expense	$	14,233	$	14,293		$	13,814	0	%	3	%

NM — Not meaningful

First Quarter 2026 vs. Fourth Quarter 2025

Noninterest expense remained stable, with no meaningful change from the prior period.

First Quarter 2026 vs. First Quarter 2025

Noninterest expense increased by $419 thousand, or 3%, primarily due to higher salaries and employee benefits, and increased occupancy and equipment, partially offset by lower other expenses.

Salaries and Employee Benefits: Increased by $500 thousand, mainly driven by staffing growth, annual salary adjustments effective April 2025, and higher benefits costs, including health insurance. This increase was partially offset by lower incentive accruals.
Occupancy and equipment: Increased by $230 thousand, primarily due to the expiration of a common-area-maintenance concession on a lease that benefited the prior period.
Other expenses: Decreased by $446 thousand, primarily reflecting lower business development and credit-related expenses.

Income Tax Expense

First Quarter 2026 vs. Fourth Quarter 2025

Income tax expense increased by $189 thousand to $2.7 million, with the effective tax rate rising to 27.0% from 26.1%.

First Quarter 2026 vs. First Quarter 2025

Income tax expense increased by $552 thousand to $2.7 million, with the effective tax rate declining to 27.0% from 27.6%. The increase in income tax expense was primarily attributable to higher pre-tax income.

BALANCE SHEET HIGHLIGHTS

Loans


($ in thousands)	As of						% Change 1Q2026 vs.
($ in thousands)		1Q2026		4Q2025		1Q2025	4Q2025		1Q2025
CRE	$	1,173,366	$	1,132,223	$	1,023,278	4	%	15	%
SBA		284,182		264,523		258,778	7		10
C&I		219,367		221,270		202,250	(1	)	8
Home mortgage		556,952		574,300		559,543	(3	)	0
Consumer & other		392		1,353		36	(71	)	989
Gross loans	$	2,234,259	$	2,193,669	$	2,043,885	2	%	9	%

The following table presents loan originations and the corresponding weighted average contractual rates for the periods indicated:


($ in thousands)	For the Three Months Ended												% Change in Amounts 1Q2026 vs.
	1Q2026				4Q2025				1Q2025				4Q2025		1Q2025
	Amount		Rate		Amount		Rate		Amount		Rate		4Q2025		1Q2025
CRE	$	83,333	6.48	%	$	75,750	6.60	%	$	69,889	7.03	%	10	%	19	%
SBA		33,528	7.99			26,748	8.52			18,206	8.81		25		84
C&I		8,489	7.00			6,870	6.57			506	8.18		24		1578
Home mortgage		7,059	6.03			7,020	6.45			74,004	6.42		1		(90	)
Consumer and other		—	—			—	—			40	6.05		—		(100	)
Gross loans ⁽¹⁾	$	132,409	6.87	%	$	116,388	7.03	%	$	162,645	6.95	%	14	%	(19	)%

(1)

Excludes changes in line utilization.

The following table summarizes the loan activity for the periods indicated:


($ in thousands)	For the Three Months Ended
($ in thousands)		1Q2026			4Q2025			1Q2025
Beginning Balance	$	2,193,669		$	2,151,217		$	1,956,852
Originations		132,409			116,388			162,645
Net change in line utilization		28,712			34,191			12,841
Purchases		—			1,014			12,028
Sales		(29,438	)		(28,549	)		(36,086	)
Payoffs & paydowns		(98,703	)		(82,365	)		(65,621	)
Other		7,610			1,773			1,226
Total		40,590			42,452			87,033
Ending balance	$	2,234,259		$	2,193,669		$	2,043,885

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
	1Q2026				4Q2025				1Q2025
	%		Rate		%		Rate		%		Rate
Fixed rate	29	%	5.70	%	31	%	5.65	%	33	%	5.53	%
Hybrid rate	40		6.00		40		5.93		37		5.71
Variable rate	31		6.86		29		7.22		30		7.86
Gross loans	100	%	6.18	%	100	%	6.22	%	100	%	6.29	%

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 March 31, 2026
	Within One Year				One Year Through Five Years				After Five Years				Total
	Amount		Rate		Amount		Rate		Amount		Rate		Amount		Rate
Fixed rate	$	183,123	5.72	%	$	282,353	6.26	%	$	182,259	4.82	%	$	647,735	5.70	%
Hybrid rate		—	—			189,039	4.94			712,525	6.28			901,564	6.00
Variable rate		108,892	7.00			197,491	6.78			378,577	6.87			684,960	6.86
Gross loans	$	292,015	6.20	%	$	668,883	6.04	%	$	1,273,361	6.25	%	$	2,234,259	6.18	%

Allowance for Credit Losses

The following table summarizes the activity in the allowance for credit losses for the periods presented:


($ in thousands)	As of and For the Three Months Ended									$ Change 1Q2026 vs.
($ in thousands)		1Q2026			4Q2025			1Q2025			4Q2025			1Q2025
Allowance for credit losses on loans, beginning	$	27,975		$	27,299		$	24,796		$	676		$	3,179
Provision for credit losses on loans		400			518			687			(118	)		(287	)
Gross charge-offs		(31	)		—			(130	)		(31	)		99
Gross recoveries		62			158			15			(96	)		47
Net recoveries (charge-offs)		31			158			(115	)		(127	)		146
Allowance for credit losses on loans, ending	$	28,406		$	27,975		$	25,368		$	431		$	3,038

Allowance for credit losses on off-balance sheet exposure, beginning	$	274		$	329		$	360		$	(55	)	$	(86	)
Provision for (reversal of) credit losses on off-balance sheet exposure		12			(55	)		49			67			(37	)
Allowance for credit losses on off-balance sheet exposure, ending	$	286		$	274		$	409		$	12		$	(123	)

Asset Quality


($ in thousands)	As of and For the Three Months Ended									% or Basis Point Change 1Q2026 vs.
($ in thousands)		1Q2026			4Q2025			1Q2025		4Q2025		1Q2025
Accruing loans 30-89 days past due ⁽¹⁾	$	9,311		$	6,292		$	6,452		48	%	44	%
As a % of gross loans		0.42	%		0.29	%		0.32	%	13 bps		10 bps

Nonperforming loans ⁽²⁾	$	18,297		$	14,071		$	10,412		30	%	76	%
Nonperforming assets ⁽²⁾		18,297			14,071			11,649		30		57
Nonperforming loans to gross loans		0.82	%		0.64	%		0.51	%	18 bps		31 bps
Nonperforming assets to total assets		0.68			0.53			0.46		15 bps		22 bps

Criticized loans ⁽³⁾⁽⁴⁾	$	33,235		$	32,060		$	23,055		3.7	%	44.2	%
Criticized loans to gross loans		1.49	%		1.46	%		1.13	%	3 bps		36 bps

Allowance for credit losses ratios:
As a % of gross loans		1.27	%		1.28	%		1.24	%	(1) bps		3 bps
As a % of nonperforming loans		155			199			244		(44	)%	(89	)%
As a % of nonperforming assets		155			199			218		(44	)	(63	)
As a % of criticized loans		85			87			110		(2	)	(25	)
Net (recoveries) charge-offs ⁽⁵⁾ to average gross loans		(0.01	)		(0.03	)		0.02		2 bps		(3) bps

(1)		Excludes the guaranteed portion of loans totaling $947 thousand and $3.2 million as of March 31, 2026 and December 31, 2025, respectively. There were no guaranteed portion as of March 31, 2025.
(2)		Excludes the guaranteed portion of loans totaling $30.8 million, $20.9 million and $14.3 million as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively.
(3)		Excludes the guaranteed portion of loans totaling $35.9 million, $27.3 million and $17.2 million as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively.
(4)		Consists of special mention, substandard, doubtful and loss categories.
(5)		Annualized.

Credit quality remained manageable during the period. The increase in nonperforming loans was primarily driven by a single isolated relationship, while overall credit performance continued to be stable. The allowance for credit losses on loans remained adequate at 1.27% of gross loans.

Accruing loans 30-89 days past-due increased by $3.0 million, primarily driven by $6.8 million inflows into this category, mainly SBA loans. This increase was partially offset by $2.3 million of SBA loans moving to nonaccrual status and $1.5 million returning to the 29-days-or-less past-due category.
Nonperforming loans increased by $4.2 million, primarily driven by a single $4.1 million CRE relationship that migrated to nonaccrual. This loan is currently in active resolution and is expected to be fully paid off by the second quarter of 2026.
Criticized loans increased by $1.2 million, primarily attributable to $2.9 million in loan downgrades. This increase was partially offset by an $872 thousand SBA note sale and $589 thousand in home mortgage loan payoffs.

Deposits


($ in thousands)	As of												% Change 1Q2026 vs.
	1Q2026				4Q2025				1Q2025				% Change 1Q2026 vs.
	Amount		%		Amount		%		Amount		%		4Q2025		1Q2025
Noninterest-bearing deposits	$	546,550	24	%	$	520,865	23	%	$	552,797	25	%	5	%	(1	)%
Money market deposits and others		398,756	17			388,066	17			385,080	18		3		4
Time deposits		1,381,988	59			1,371,616	60			1,251,994	57		1		10
Total deposits	$	2,327,294	100	%	$	2,280,547	100	%	$	2,189,871	100	%	2	%	6	%

Estimated uninsured deposits	$	1,154,625	50	%	$	1,093,843	48	%	$	1,072,753	49	%	6	%	8	%

As of March 31, 2026 vs. December 31, 2025

Total deposits increased by $46.7 million or 2%, reflecting growth across all major deposit categories. The growth in noninterest-bearing deposits reflects both new account openings and higher balances from existing customers. The increase in money market deposits and others was primarily due to higher balances from existing customers. Time deposit growth was largely attributable to new retail customers opening accounts, partially offset by a decline in wholesale CD balances.

As of March 31, 2026 vs. March 31, 2025

Total deposits increased by $137.4 million or 6%, primarily driven by growth of $130.0 million in time deposits. The increase in time deposits was largely due to new customers opening CD accounts, reflecting a preference for higher-yielding products.

The following table sets forth the maturity of time deposits as of March 31, 2026:


	As of March 31, 2026
($ 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)	$	159,075		$	286,942		$	157,995		$	138,438		$	703		$	743,153
Time deposits ($250 or less)		303,647			159,114			99,555			74,733			1,786			638,835
Total time deposits	$	462,722		$	446,056		$	257,550		$	213,171		$	2,489		$	1,381,988
Weighted average rate		3.99	%		3.92	%		4.01	%		3.78	%		1.86	%		3.94	%

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, including the Federal Reserve. The following table presents the Company's liquid assets and available borrowings as of dates presented:


($ in thousands)		1Q2026			4Q2025			1Q2025
Liquidity Assets:
Cash and cash equivalents	$	160,260		$	167,311		$	198,861
Available-for-sale ("AFS") debt securities		209,006			192,785			182,480
Liquid assets	$	369,266		$	360,096		$	381,341
Liquid assets to total assets		14	%		14	%		15	%

Available Borrowings:
Federal Home Loan Bank ("FHLB") —San Francisco	$	417,723		$	443,629		$	381,456
Federal Reserve Bank		204,140			208,859			217,563
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	$	721,863		$	752,488		$	699,019
Total available borrowings to total assets		27	%		28	%		28	%

Liquid assets and available borrowings to total deposits		47	%		49	%		49	%

Capital and Capital Ratios

On April 23, 2026, the Company's Board of Directors declared a quarterly cash dividend of $0.14 per share, representing a 17% increase from the prior quarterly dividend of $0.12 per share, on its common stock. The dividend is payable on or about May 21, 2026, to shareholders of record as of the close of business on May 7, 2026. The principal source of funds from which the Company pays dividends are the dividends received from the Bank. During the first quarter of 2026, no shares were repurchased under the repurchase program approved in August 2025.


	OP Bancorp⁽¹⁾		Open Bank		Well- Capitalized Requirement		Minimum Capital Ratio+ Conservation Buffer⁽²⁾
Risk-Based Capital Ratios ⁽³⁾:
Total capital	13.17	%	13.18	%	10.00	%	10.50	%
Tier 1 capital	10.82		11.93		8.00		8.50
CET1 capital	10.82		11.93		6.50		7.00
Tier 1 leverage	9.07		10.00		5.00		4.00

(1)		The capital requirements are only applicable to the Bank. The Company's ratios are included solely for comparison purpose.
(2)		An additional 2.5% capital conservation buffer above the minimum capital ratios are required in order to avoid limitations on distributions, including dividend payments and certain discretionary bonuses to executive officers. This buffer does not apply and is not included in the tier 1 leverage ratio.
(3)		The Company's March 31, 2026 regulatory capital ratios and risk-weighted assets are preliminary.


OP Bancorp					% or Basis Point Change 1Q2026 vs.
OP Bancorp	1Q2026		4Q2025	1Q2025	4Q2025	1Q2025
Risk-Based Capital Ratios:
Total capital	13.17 %	⁽¹⁾	13.31 %	12.22 %	(14) bps	95 bps
Tier 1 capital	10.82	⁽¹⁾	10.93	10.97	(11) bps	(15) bps
CET1 capital	10.82	⁽¹⁾	10.93	10.97	(11) bps	(15) bps
Tier 1 leverage	9.07	⁽¹⁾	8.99	9.22	8 bps	(15) bps
Risk-weighted Assets ($ in thousands)	$ 2,245,233	⁽¹⁾	$ 2,174,801	$ 2,034,969	3 %	10 %

(1)

The Company's March 31, 2026 regulatory capital ratios and risk-weighted assets are preliminary.

ABOUT OP BANCORP

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

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain matters set forth herein constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder. All statements that are not statements of historical fact are forward-looking, and readers should not construe these statements of assurances of expected or intended results, or of promises that management will take a given course of action or pursue the currently expected strategies and objectives. Forward-looking statements in this report include comments about the Company's current business plans and expectations regarding future operating results, as well as management's statements about expected future events and economic developments, plans, strategies and objectives. All such statements reflect the current intentions, beliefs and expectations of the Company's executive management based on currently available information and current and expected market conditions. Forward-looking statements can sometimes be identified by the use of forward-looking language, such as "likely result in," "expects," "anticipates," "estimates," "forecasts," "projects," "intends to," or may include other similar words or phrases, such as "believes," "plans," "trend," "objective," "continues," "remains," or similar expressions, or future or conditional verbs, such as "will," "would," "should," "could," "may," "might," "can," or similar verbs. Readers should not construe these statements as assurances of a given level of performance, or as promises that we will take the actions our management currently expects.

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

CONSOLIDATED BALANCE SHEETS (unaudited)

($ in thousands)	As of									% Change 1Q2026 vs.
($ in thousands)		1Q2026			4Q2025			1Q2025		4Q2025		1Q2025
Assets
Cash and due from banks	$	12,842		$	10,911		$	12,575		18	%	2	%
Interest-bearing deposits with banks		147,418			156,400			186,286		(6	)	(21	)
Cash and cash equivalents		160,260			167,311			198,861		(4	)	(19	)
AFS debt securities, at fair value		209,006			192,785			182,480		8		15
Other investments		17,213			17,208			16,517		0		4
Loans held-for-sale		9,498			11,443			4,555		(17	)	109
CRE		1,173,366			1,132,223			1,023,278		4		15
SBA		284,182			264,523			258,778		7		10
C&I		219,367			221,270			202,250		(1	)	8
Home mortgage		556,952			574,300			559,543		(3	)	0
Consumer and other		392			1,353			36		(71	)	NM
Gross loans		2,234,259			2,193,669			2,043,885		2		9
Allowance for credit losses on loans		(28,406	)		(27,975	)		(25,368	)	2		12
Net loans		2,205,853			2,165,694			2,018,517		2		9
Premises and equipment, net		5,516			5,744			6,526		(4	)	(15	)
Accrued interest receivable		10,683			10,482			9,871		2		8
Servicing assets		9,834			10,057			10,848		(2	)	(9	)
Company owned life insurance		23,794			23,616			23,084		1		3
Deferred tax assets, net		12,417			12,438			13,183		0		(6	)
Other real estate owned ("OREO")		—			—			1,237		—		(100	)
Operating right-of-use assets		8,253			8,804			6,930		(6	)	19
Other assets		26,300			24,644			20,362		7		29
Total assets	$	2,698,627		$	2,650,226		$	2,512,971		2	%	7	%
Liabilities and Shareholders' Equity
Liabilities:
Noninterest-bearing	$	546,550		$	520,865		$	552,797		5	%	(1	)%
Money market and others		398,756			388,066			385,080		3		4
Time deposits greater than $250		743,153			683,956			610,783		9		22
Other time deposits		638,835			687,660			641,211		(7	)	0
Total deposits		2,327,294			2,280,547			2,189,871		2		6
FHLB advances		75,000			75,000			75,000		—		—
Subordinated note		24,607			24,586			—		0		NM
Accrued interest payable		15,181			14,595			14,994		4		1
Operating lease liabilities		10,508			11,175			9,193		(6	)	14
Other liabilities		13,326			16,430			13,824		(19	)	(4	)
Total liabilities		2,465,916			2,422,333			2,302,882		2		7
Shareholders' equity:
Common stock		73,018			73,018			73,697		—		(1	)
Additional paid-in capital		11,995			11,849			11,371		1		5
Retained earnings		158,730			153,283			138,563		4		15
Accumulated other comprehensive loss, net of tax		(11,032	)		(10,257	)		(13,542	)	8		(19	)
Total shareholders' equity		232,711			227,893			210,089		2		11
Total liabilities and shareholders' equity	$	2,698,627		$	2,650,226		$	2,512,971		2	%	7	%

Shares of common stock outstanding, at period-end		14,894,239			14,889,540			14,914,261		0	%	0	%
Book value per share	$	15.62		$	15.31		$	14.09		2	%	11	%
Stockholders' equity to asset ratio		8.62	%		8.60	%		8.36	%	0	%	3	%

NM — Not meaningful

CONSOLIDATED STATEMENTS OF INCOME (unaudited)

($ in thousands, except share and per share data)	For the Three Months Ended									% or Basis Point Change 1Q2026 vs.
($ in thousands, except share and per share data)		1Q2026			4Q2025			1Q2025		4Q2025		1Q2025
Interest income
Interest and fees on loans	$	34,879		$	35,921		$	31,689		(3	)%	10	%
Interest on AFS debt securities		1,761			1,680			1,496		5		18
Other interest income		1,897			1,681			1,674		13		13
Total interest income		38,537			39,282			34,859		(2	)	11
Interest expense
Interest on deposits		16,845			17,324			16,608		(3	)	1
Interest on borrowings		679			817			833		(17	)	(18	)
Interest on subordinated note		490			278			—		76		100
Total interest expense		18,014			18,419			17,441		(2	)	3
Net interest income		20,523			20,863			17,418		(2	)	18
Provision for credit losses		412			463			736		(11	)	(44	)
Net interest income after provision for credit losses		20,111			20,400			16,682		(1	)	21
Noninterest income
Service charges on deposits		463			462			1,000		0		(54	)
Loan servicing fees, net of amortization		722			650			1,007		11		(28	)
Gains on sale of loans		2,050			1,573			2,019		30		2
Other income		797			733			790		9		1
Total noninterest income		4,032			3,418			4,816		18		(16	)
Noninterest expense
Salaries and employee benefits		9,276			9,244			8,776		0		6
Occupancy and equipment		1,811			1,919			1,581		(6	)	15
Data processing and communication		411			591			296		(30	)	39
Professional fees		399			549			407		(27	)	(2	)
FDIC insurance and regulatory assessments		418			362			487		15		(14	)
Promotion and advertising		120			(9	)		156		NM		(23	)
Directors' fees		144			148			180		(3	)	(20	)
Foundation donation and other contributions		725			707			556		3		30
Other expenses		929			782			1,375		19		(32	)
Total noninterest expense		14,233			14,293			13,814		0		3
Income before income tax expense		9,910			9,525			7,684		4		29
Income tax expense		2,676			2,487			2,124		8		26
Net income	$	7,234		$	7,038		$	5,560		3	%	30	%

EPS - basic		0.49			0.47			0.37		2 bps		12 bps
EPS - diluted		0.48			0.47			0.37		1 bps		11 bps

Weighted average shares:
- Basic		14,890,929			14,886,681			14,857,234		0	%	0	%
- Diluted		14,930,173			14,915,677			14,857,234		0		0

ROAA ⁽¹⁾		1.08	%		1.07	%		0.92	%	1 bps		16 bps
ROAE ⁽¹⁾		12.56			12.53			10.73		3 bps		183 bps
Efficiency ratio ⁽²⁾		57.97			58.87			62.13		(90) bps		(416) bps

NM — Not meaningful

(1)		Annualized.
(2)		Represents noninterest expense divided by the sum of net interest income and noninterest income

ASSET QUALITY

($ in thousands)	As of and For the Three Months Ended
($ in thousands)		1Q2026			4Q2025			1Q2025
Nonaccrual loans ⁽¹⁾⁽²⁾	$	18,297		$	14,071		$	10,412
Loans 90 days or more past due, accruing		—			—			—
Nonperforming loans		18,297			14,071			10,412
OREO		—			—			1,237
Nonperforming assets	$	18,297		$	14,071		$	11,649

Criticized loans ⁽³⁾ by risk categories:
Special mention loans	$	10,141		$	10,885		$	7,190
Classified loans ⁽⁴⁾		23,094			21,175			15,865
Total criticized loans	$	33,235		$	32,060		$	23,055

Nonperforming loans to gross loans		0.82	%		0.64	%		0.51	%
Nonperforming assets to gross loans & OREO		0.82			0.64			0.57
Nonperforming assets to total assets		0.68			0.53			0.46
Classified loans to gross loans		1.03			0.97			0.78
Criticized loans to gross loans		1.49			1.46			1.13

Allowance for credit losses ratios:
As a % of gross loans		1.27	%		1.28	%		1.24	%
As a % of nonperforming loans		155			199			244
As a % of nonperforming assets		155			199			218
As a % of classified loans		123			132			160
As a % of criticized loans		85			87			110

Net (recoveries) charge-offs	$	(31	)	$	(158	)	$	115
Net (recoveries) charge-offs ⁽⁵⁾ to average gross loans		(0.01	)%		(0.03	)%		0.02	%

(1)		Excludes loans held-for-sale.
(2)		Excludes the guaranteed portion of loans totaling $30.8 million, $20.9 million and $14.3 million as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively.
(3)		Excludes the guaranteed portion of loans totaling $35.9 million, $27.3 million and $17.2 million as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively.
(4)		Consists of substandard, doubtful and loss categories.
(5)		Annualized.


($ in thousands)		1Q2026		4Q2025		1Q2025
Accruing delinquent loans 30-89 days past due by loan type ⁽¹⁾ :
CRE	$	—	$	—	$	—
SBA		5,374		2,562		2,483
C&I		9		—		—
Home mortgage		3,911		557		3,969
Total 30-59 days		9,294		3,119		6,452

CRE		—		—		—
SBA		—		1,168		—
C&I		17		—		—
Home mortgage		—		2,005		—
Total 60-89 days		17		3,173		—

CRE		—		—		—
SBA		5,374		3,730		2,483
C&I		26		—		—
Home mortgage		3,911		2,562		3,969
Total accruing delinquent loans 30-89 days past due	$	9,311	$	6,292	$	6,452

Nonaccrual loans ⁽²⁾ by loan type:
CRE	$	7,307	$	3,424	$	1,937
SBA		10,597		9,840		6,371
C&I		393		218		—
Home mortgage		—		589		2,104
Total nonaccrual	$	18,297	$	14,071	$	10,412

Criticized loans⁽³⁾ by loan type:
CRE	$	10,057	$	10,364	$	8,988
SBA		20,016		18,218		11,574
C&I		1,620		1,338		389
Home mortgage		1,542		2,140		2,104
Total criticized	$	33,235	$	32,060	$	23,055

(1)		Excludes the guaranteed portion of loans totaling $947 thousand and $3.2 million as of March 31, 2026 and December 31, 2025, respectively. There was no guaranteed portion as of March 31, 2025.
(2)		Excludes the guaranteed portion of loans that were in liquidation totaling $30.8 million, $20.9 million and $14.3 million as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively.
(3)		Excludes the guaranteed portion of loans that were in liquidation totaling $35.9 million, $27.3 million and $17.2 million as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively.

AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS

	For the Three Months Ended
	1Q2026						4Q2025						1Q2025
($ in thousands)	Average Balance		Interest Income/ Expense		Average Yield/Rate⁽¹⁾		Average Balance		Interest Income/ Expense		Average Yield/Rate⁽¹⁾		Average Balance		Interest Income/ Expense		Average Yield/Rate⁽¹⁾
Interest-earning assets:
Interest-bearing deposits in other banks	$	145,013	$	1,326	3.66	%	$	135,883	$	1,360	3.92	%	$	124,069	$	1,372	4.42	%
Other investments		17,232		571	13.24			17,186		321	7.46			16,469		302	7.33
AFS debt securities, at fair value		205,247		1,761	3.43			198,335		1,680	3.39			184,649		1,496	3.24
CRE		1,154,515		17,814	6.26			1,119,031		17,616	6.25			1,000,426		14,980	6.07
SBA		292,821		5,980	8.28			282,501		6,557	9.21			265,953		6,207	9.47
C&I		212,941		3,552	6.77			220,274		3,846	6.93			212,106		3,778	7.22
Home mortgage		565,185		7,508	5.31			581,824		7,889	5.42			526,326		6,718	5.11
Consumer and other		1,287		25	7.99			602		13	8.75			233		6	9.75
Loans ⁽²⁾		2,226,749		34,879	6.33			2,204,232		35,921	6.48			2,005,044		31,689	6.39
Total interest-earning assets		2,594,241		38,537	6.00			2,555,636		39,282	6.11			2,330,231		34,859	6.04
Noninterest-earning assets		76,830						79,743						77,823
Total assets	$	2,671,071					$	2,635,379					$	2,408,054

Interest-bearing liabilities:
Money market deposits and others	$	393,242	$	3,009	3.10	%	$	389,958	$	3,241	3.30	%	$	353,804	$	3,085	3.54	%
Time deposits		1,390,491		13,836	4.04			1,342,337		14,083	4.16			1,208,032		13,523	4.54
Total interest-bearing deposits		1,783,733		16,845	3.83			1,732,295		17,324	3.97			1,561,836		16,608	4.31
Borrowings		75,834		679	3.63			86,905		817	3.73			78,944		833	4.28
Subordinated note		24,600		490	7.97			13,896		278	7.99			—		—	—
Total interest-bearing liabilities		1,884,167		18,014	3.88			1,833,096		18,419	3.99			1,640,780		17,441	4.31
Noninterest-bearing liabilities:
Noninterest-bearing deposits		516,722						532,695						522,054
Other noninterest-bearing liabilities		39,756						44,985						38,014
Total noninterest-bearing liabilities		556,478						577,680						560,068
Shareholders' equity		230,426						224,603						207,206
Total liabilities and shareholders' equity	$	2,671,071					$	2,635,379					$	2,408,054

Net interest income / interest rate spreads			$	20,523	2.12	%			$	20,863	2.12	%			$	17,418	1.73	%
Net interest margin					3.19	%					3.25	%					3.01	%

Cost of deposits & cost of funds:
Total deposits / cost of deposits	$	2,300,455	$	16,845	2.97	%	$	2,264,990	$	17,324	3.03	%	$	2,083,890	$	16,608	3.23	%
Total funding liabilities / cost of funds		2,400,889		18,014	3.04			2,365,791		18,419	3.09			2,162,834		17,441	3.27

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

View source version on businesswire.com: https://www.businesswire.com/news/home/20260423125071/en/

Investor Relations

OP Bancorp

Jaehyun Park

EVP & CFO

213.593.4865

jaehyun.park@myopenbank.com

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