OP Bancorp Reports Second Quarter 2026 Net Income of $8.0 Million, Diluted EPS of $0.53

Key Terms

net interest margin financial

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

nonaccrual CRE loan financial

A nonaccrual CRE loan is a commercial real estate loan that a lender has stopped recording interest income on because payments are past due or the borrower’s ability to repay is in serious doubt. Think of it like a landlord who stops counting expected rent from a tenant who isn’t paying; for lenders this status reduces reported interest income, signals higher credit risk, and can lead to increased reserves or potential losses that matter to investors evaluating a lender’s financial health.

efficiency ratio financial

A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.

common equity tier 1 capital regulatory

Core capital a bank holds consisting mainly of common shares and retained profits that can absorb losses without forcing the bank to sell assets or seek emergency help; items that can’t reliably cover losses are excluded. Think of it as the bank’s shock-absorbing cushion: a higher common equity tier 1 (CET1) level and ratio means regulators and investors view the bank as better able to survive bad loans or market shocks, so it signals lower risk to shareholders and creditors.

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compared with first quarter 2026 net income of $7.2 million, diluted EPS of $0.48, and second quarter 2025 net income of $6.3 million, diluted EPS of $0.42

Revenue growth; reversal of provision for credit losses; improved operating efficiency

LOS ANGELES--(BUSINESS WIRE)-- 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
		2Q2026				1Q2026				2Q2025				Comparisons reflect 2Q26 vs. 1Q26
Income Statement:														Income Statement
Net interest income		$	20,068			$	20,523			$	19,721			Revenue continued to grow. Reversal of provision reflected the payoff of a previously reserved nonaccrual CRE loan. Net income increased 10%, benefiting from strong revenue growth and reversal of provision. Diluted EPS improved by $0.05 to $0.53. Net interest margin decreased due to a one-time accrual adjustment related to Federal Reserve account.
Noninterest income			5,651				4,032				3,968
Revenue			25,719				24,555				23,689
(Reversal of) provision for credit losses			(149	)			412				1,206
Noninterest expense			14,826				14,233				14,037
Net income		$	7,978			$	7,234			$	6,333
Diluted Earnings Per Share (“EPS”)		$	0.53			$	0.48			$	0.42
Net interest margin (1)			3.08	%			3.19	%			3.23	%
Efficiency ratio (2)			57.64				57.97				59.25
Balance Sheet:														Balance Sheet
Average loans (3)		$	2,253,270			$	2,226,749			$	2,095,168			Average loans increased 1%.
Average deposits			2,315,821				2,300,455				2,223,575			Average deposits increased 1%.
Credit Quality:														Credit Quality
Net charge-offs (recoveries) (1) to average gross loans			0.03	%			(0.01	)%			0.06	%		Net charge-offs remained low.
Allowance for credit losses on loans to gross loans			1.24				1.27				1.27			Allowance coverage remained robust at 1.24% of gross loans.
Selected Ratios:														Performance and Capital
Book value per share		$	15.99			$	15.62			$	14.36			Book value per share continued to increase, reflecting growth in stockholders’ equity.
Return on average assets ("ROAA") (1)			1.18	%			1.08	%			1.00	%		ROAA and ROAE improved, reflecting stronger profitability
Return on average equity ("ROAE") (1)			13.61				12.56				11.97
Stockholders' equity to asset ratio			8.70				8.62				8.34			Stockholders’ equity to asset increased, supporting the Company’s capital strength.
Common equity tier 1 capital (“CET1”)			10.98				10.83				11.01			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 delivered another quarter of strong financial performance, highlighted by net income of $8.0 million and diluted EPS of $0.53. Our results were driven by continued revenue growth, a reversal of provision for credit losses reflecting the strength of our credit portfolio, and ongoing improvements in operating efficiency. We also maintained solid balance sheet growth, with increases in both loans and deposits, while preserving strong asset quality and capital levels. As we enter the second half of 2026, we remain committed to driving sustainable growth while maintaining disciplined risk management and operating efficiency,” 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 2Q2026 vs.
		2Q2026			1Q2026			2Q2025			1Q2026			2Q2025
Interest Income
Interest income		$	38,193		$	38,537		$	37,665		(1	)%		1	%
Interest expense			18,125			18,014			17,944		1			1
Net interest income		$	20,068		$	20,523		$	19,721		(2	)%		2	%

($ in thousands)		For the Three Months Ended																		Average Yield/Rate Change 2Q2026 vs.
		2Q2026						1Q2026						2Q2025
		Interest Income/Expense			Average Yield/Rate(1)			Interest Income/Expense			Average Yield/Rate(1)			Interest Income/Expense			Average Yield/Rate(1)			1Q2026		2Q2025
Interest-earning Assets:
Loans		$	35,731		6.36	%		$	34,879		6.33	%		$	34,263		6.56	%		3 bps		(20) bps
Total interest-earning assets			38,193		5.87				38,537		6.00				37,665		6.18			(13) bps		(31) bps
Interest-bearing Liabilities:
Interest-bearing deposits			16,891		3.77				16,845		3.83				17,475		4.18			(6) bps		(41) bps
Total interest-bearing liabilities			18,125		3.82				18,014		3.88				17,944		4.18			(6) bps		(36) bps
Ratios:
Net interest income / interest rate spreads			20,068		2.05				20,523		2.12				19,721		2.00			(7) bps		5 bps
Net interest margin					3.08						3.19						3.23			(11) bps		(15) bps
Total deposits / cost of deposits			16,891		2.93				16,845		2.97				17,475		3.15			(4) bps		(22) bps
Total funding liabilities / cost of funds			18,125		3.00				18,014		3.04				17,944		3.17			(4) bps		(17) bps

(1)		Annualized.

($ in thousands)		For the Three Months Ended																					Average Yield Change 2Q2026 vs.
		2Q2026							1Q2026							2Q2025
		Interest Income				Average Yield (1)			Interest Income				Average Yield (1)			Interest Income				Average Yield (1)			1Q2026		2Q2025
Loan Yield Component:
Contractual interest rate		$	35,335			6.29	%		$	34,254			6.22	%		$	33,304			6.37	%		7 bps		(8) bps
Accretion of SBA loan discount (2)			687			0.12				815			0.15				785			0.15			(3) bps		(3) bps
Amortization of net deferred fees			64			0.01				127			0.02				(60	)		(0.01	)		(1) bps		2 bps
Amortization of premium			(293	)		(0.05	)			(312	)		(0.06	)			(329	)		(0.06	)		1 bps		1 bps
Amortization of premium - Home mortgage payoffs			(173	)		(0.03	)			(186	)		(0.03	)			(63	)		(0.01	)		— bps		(2) bps
Net interest recognized on nonaccrual loans			(68	)		(0.01	)			(94	)		(0.02	)			295			0.06			1 bps		(7) bps
Prepayment penalty income and other fees (3)			179			0.03				275			0.05				331			0.06			(2) bps		(3) bps
Yield on loans		$	35,731			6.36	%		$	34,879			6.33	%		$	34,263			6.56	%		3 bps		(20) bps

(1)		Annualized.
(2)		Includes discount accretion from Small Business Administration ("SBA") loan payoffs of $232 thousand, $370 thousand and $293 thousand for the three months ended June 30, 2026, March 31, 2026 and June 30, 2025, respectively.
(3)		Includes prepayment penalty income of $91 thousand, $98 thousand and $166 thousand for the three months ended June 30, 2026, March 31, 2026 and June 30, 2025, respectively, primarily from Commercial Real Estate (“CRE”) and SBA loans.

Second Quarter 2026 vs. First Quarter 2026

Net interest income declined by $455 thousand, or 2%, primarily reflecting a one-time interest accrual adjustment related to the Federal Reserve Bank account and the absence of a special FHLB dividend recognized in the prior period. These decreases were partially offset by continued loan growth. As a result, the net interest margin contracted by 11 basis points to 3.08%.

• Interest-bearing deposits in other banks: Interest income decreased by $910 thousand, primarily due to a one-time $739 thousand accrual adjustment on the Federal Reserve Bank account.
• Other investments: Interest income decreased by $349 thousand, mainly due to the absence of a special dividend received on FHLB stock in the prior period.
• Loans: Interest income increased by $852 thousand, driven largely by a $26.5 million increase in average loan balances, reflecting growth in SBA and CRE loans, as well as two additional accrual days during the current period.
• Deposits: Interest expense remained relatively stable compared to the prior period.

Second Quarter 2026 vs. Second Quarter 2025

Net interest income increased by $347 thousand, or 2%, primarily driven by balance-sheet growth and lower deposit rates. These favorable factors were partially offset by lower loan yields, reduced interest income on interest-bearing deposits in other banks resulting from the aforementioned Federal Reserve Bank interest accrual adjustment and lower interest rates, and higher interest expense associated with the subordinated note issued in November 2025. As a result, the net interest margin declined by 15 basis points to 3.08%.

• Loans: Interest income increased by $1.5 million, largely attributable to a $158.1 million increase in average loan balances, reflecting growth in CRE loans. The increase was partially offset by a 20-basis-point decline in loan yields, reflecting the downward repricing of adjustable-rate loans and lower rates on new originations following last year’s federal funds rate cuts, as well as the absence of elevated interest income recognized from nonaccrual loans in the prior period.
• Deposits: Interest expense decreased by $584 thousand, mainly due to a 41-basis-point decline in costs of interest-bearing deposits, driven by the repricing of time deposits following the federal funds rate cuts. This decrease was partially offset by a $121.6 million increase in average interest-bearing deposit balances, reflecting growth in time deposits.
• Interest-bearing deposits in other banks: Interest income decreased by $1.2 million, primarily due to the aforementioned accrual adjustment on the Federal Reserve Bank account, as well as lower yields on Federal Reserve Bank balances.
• Subordinated note: Interest expense increased by $490 thousand, mainly due to the subordinated note issued in November 2025.

Provision for Credit Losses

($ in thousands)		For the Three Months Ended											$ Change 2Q2026 vs.
		2Q2026				1Q2026			2Q2025				1Q2026				2Q2025
(Reversal of) provision for credit losses on loans		$	(131	)		$	400		$	1,255			$	(531	)		$	(1,386	)
(Reversal of) provision for credit losses on off-balance sheet exposure			(18	)			12			(49	)			(30	)			31
(Reversal of) provision for credit losses		$	(149	)		$	412		$	1,206			$	(561	)		$	(1,355	)

Second Quarter 2026 vs. First Quarter 2026

Provision for credit losses on loans decreased by $531 thousand, primarily due to the payoff of a previously reserved nonaccrual CRE loan, resulting in the reversal of a $761 thousand specific reserve recorded in the first quarter of 2026.

Second Quarter 2026 vs. Second Quarter 2025

Provision for credit losses on loans decreased by $1.4 million, primarily due to the aforementioned payoff of the nonaccrual CRE loans, as well as lower qualitative reserves driven by slower home mortgage loan growth and a more favorable economic outlook compared to a year ago.

Noninterest Income

($ in thousands)		For the Three Months Ended									% Change 2Q2026 vs.
		2Q2026			1Q2026			2Q2025			1Q2026			2Q2025
Noninterest Income
Service charges on deposits		$	515		$	463		$	1,017		11	%		(49	)%
Loan servicing fees, net of amortization			974			722			900		35			8
Gains on sale of loans			3,370			2,050			1,441		64			134
Other income			792			797			610		(1	)		30
Total noninterest income		$	5,651		$	4,032		$	3,968		40	%		42	%

Second Quarter 2026 vs. First Quarter 2026

Noninterest income increased by $1.6 million, or 40%, primarily driven by higher gains on sale of loans and loan servicing fees.

• Gains on Sale of Loans: Increased by $1.3 million, driven by stronger SBA loan sale activity. The Bank sold $49.1 million in SBA loans at an average premium rate of 8.17%, compared with $32.2 million sold at an average premium rate of 8.27% in the prior period.
• Loan servicing fees, net of amortization: Increased by $252 thousand, mainly due to lower amortization of servicing assets resulting from reduced payoff activity.

Second Quarter 2026 vs. Second Quarter 2025

Noninterest income increased by $1.7 million, or 42%, primarily due to higher gains on sale of loans, partially offset by lower service charges on deposits.

• Gains on Sale of Loans: Increased by $1.9 million, driven by stronger SBA loan sale activity and higher premium rates. The Bank sold $49.1 million in SBA loans at an average premium rate of 8.17%, compared with $25.3 million sold at an average premium rate of 7.05% in the prior period.
• Service Charges on Deposits: Decreased by $502 thousand, largely reflecting lower balances in existing business analysis accounts and closure of certain currency exchange-related accounts during the third quarter of 2025.

Noninterest Expense

($ in thousands)		For the Three Months Ended									% Change 2Q2026 vs.
		2Q2026			1Q2026			2Q2025			1Q2026			2Q2025
Noninterest Expense
Salaries and employee benefits		$	9,733		$	9,276		$	9,075		5	%		7	%
Occupancy and equipment			1,901			1,811			1,584		5			20
Data processing and communication			380			411			306		(8	)		24
Professional fees			454			399			418		14			9
FDIC insurance and regulatory assessments			387			418			506		(7	)		(24	)
Promotion and advertising			104			120			232		(13	)		(55	)
Directors’ fees			164			144			198		14			(17	)
Foundation donation and other contributions			811			725			636		12			28
Other expenses			892			929			1,082		(4	)		(18	)
Total noninterest expense		$	14,826		$	14,233		$	14,037		4	%		6	%

Second Quarter 2026 vs. First Quarter 2026

Noninterest expense increased by $593 thousand, or 4%, primarily due to higher salaries and employee benefits.

• Salaries and Employee Benefits: Increased by $457 thousand, primarily due to annual salary adjustments effective April 2026 and higher incentive accruals driven by increased loan production, partially offset by lower vacation accruals.

Second Quarter 2026 vs. Second Quarter 2025

Noninterest expense increased by $789 thousand, or 6%, 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 $658 thousand, mainly driven by staffing growth and annual salary adjustments effective April 2026.
• Occupancy and equipment: Increased by $317 thousand, primarily due to the expiration of a common-area-maintenance concession on a lease that benefited the prior period.
• Other expenses: Decreased by $190 thousand, primarily due to lower customer service expense following the previously discussed currency exchange account closures.

Income Tax Expense

Second Quarter 2026 vs. First Quarter 2026

Income tax expense increased by $388 thousand to $3.1 million, primarily due to higher pre-tax income, while the effective tax rate increased modestly to 27.8% from 27.0%.

Second Quarter 2026 vs. Second Quarter 2025

Income tax expense increased by $951 thousand to $3.1 million, primarily due to higher pre-tax income. The effective tax rate increased to 27.8% from 25.0%, mainly reflecting the absence of a one-time deferred tax asset revaluation recognized in the prior-year period and the impact of federal tax law changes effective in 2026.

BALANCE SHEET HIGHLIGHTS

Loans

($ in thousands)		As of									% Change 2Q2026 vs.
		2Q2026			1Q2026			2Q2025			1Q2026			2Q2025
CRE		$	1,190,117		$	1,173,366		$	1,021,431		1	%		17	%
SBA			278,554			284,182			263,424		(2	)		6
C&I			221,623			219,367			193,359		1			15
Home mortgage			568,512			556,952			593,256		2			(4	)
Consumer & other			255			392			110		(35	)		132
Gross loans		$	2,259,061		$	2,234,259		$	2,071,580		1	%		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 2Q2026 vs.
		2Q2026						1Q2026						2Q2025						1Q2026			2Q2025
		Amount			Rate			Amount			Rate			Amount			Rate
CRE		$	92,042		6.78	%		$	83,333		6.48	%		$	39,734		7.00	%		10	%		132	%
SBA			32,403		7.94				33,528		7.99				33,811		8.64			(3	)		(4	)
C&I			8,321		7.28				8,489		7.00				3,136		7.72			(2	)		165
Home mortgage			36,574		5.94				7,059		6.03				54,837		6.64			418			(33	)
Consumer and other			—		—				—		—				—		—			—			—
Gross loans (1)		$	169,340		6.85	%		$	132,409		6.87	%		$	131,518		7.29	%		28	%		29	%

(1)

Excludes changes in line utilization.

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

($ in thousands)		For the Three Months Ended
		2Q2026				1Q2026				2Q2025
Beginning Balance		$	2,234,259			$	2,193,669			$	2,043,885
Originations			169,340				132,409				131,518
Net change in line utilization			35,399				28,712				27,287
Purchases			5,426				—				1,750
Sales			(51,907	)			(29,438	)			(26,734	)
Payoffs & paydowns			(123,664	)			(98,703	)			(91,437	)
Other			(9,792	)			7,610				(14,689	)
Total			24,802				40,590				27,695
Ending balance		$	2,259,061			$	2,234,259			$	2,071,580

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

($ in thousands)		As of
		2Q2026						1Q2026						2Q2025
		%			Rate			%			Rate			%			Rate
Fixed rate		28	%		5.77	%		29	%		5.70	%		31	%		5.54	%
Hybrid rate		41			6.05			40			6.00			40			5.81
Variable rate		31			6.90			31			6.86			29			8.16
Gross loans		100	%		6.24	%		100	%		6.18	%		100	%		6.42	%

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

($ in thousands)		As of June 30, 2026
		Within One Year						One Year Through Five Years						After Five Years						Total
		Amount			Rate			Amount			Rate			Amount			Rate			Amount			Rate
Fixed rate		$	159,578		5.47	%		$	277,011		6.55	%		$	192,938		4.90	%		$	629,527		5.77	%
Hybrid rate			—		—				197,537		5.28				741,366		6.26				938,903		6.05
Variable rate			138,125		7.04				170,809		6.91				381,697		6.84				690,631		6.90
Gross loans		$	297,703		6.20	%		$	645,357		6.26	%		$	1,316,001		6.24	%		$	2,259,061		6.24	%

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 2Q2026 vs.
		2Q2026				1Q2026				2Q2025				1Q2026				2Q2025
Allowance for credit losses on loans, beginning		$	28,406			$	27,975			$	25,368			$	431			$	3,038
(Reversal of) provision for credit losses on loans			(131	)			400				1,255				(531	)			(1,386	)
Gross charge-offs			(224	)			(31	)			(542	)			(193	)			318
Gross recoveries			49				62				205				(13	)			(156	)
Net (charge-offs) recoveries			(175	)			31				(337	)			(206	)			162
Allowance for credit losses on loans, ending		$	28,100			$	28,406			$	26,286			$	(306	)		$	1,814
Allowance for credit losses on off-balance sheet exposure, beginning		$	286			$	274			$	409			$	12			$	(123	)
(Reversal of) provision for credit losses on off-balance sheet exposure			(18	)			12				(49	)			(30	)			31
Allowance for credit losses on off-balance sheet exposure, ending		$	268			$	286			$	360			$	(18	)		$	(92	)

Asset Quality

($ in thousands)		As of and For the Three Months Ended												% or Basis Point Change 2Q2026 vs.
		2Q2026				1Q2026				2Q2025				1Q2026			2Q2025
Accruing loans 30-89 days past due (1)		$	10,486			$	9,311			$	9,804			13	%		7	%
As a % of gross loans			0.46	%			0.42	%			0.47	%		4 bps			(1) bps
Nonaccrual loans (2)(3)		$	16,372			$	18,297			$	8,916			(11	)%		84	%
Loans 90 days or more past due, accruing			892				—				—			NM			NM
Nonperforming loans (3)			17,264				18,297				8,916			(6	)		94
OREO			—				—				1,237			—			(100	)
Nonperforming assets (3)		$	17,264			$	18,297			$	10,153			(6	)%		70	%
Nonperforming loans to gross loans			0.76	%			0.82	%			0.43	%		(6) bps			33 bps
Nonperforming assets to gross loans & OREO			0.76				0.82				0.49			(6) bps			27 bps
Nonperforming assets to total assets			0.63				0.68				0.40			(5) bps			23 bps
Criticized loans (4)(5) by risk categories:
Special mention loans		$	8,834			$	10,141			$	9,257			(13	)%		(5	)%
Classified loans (6)			24,594				23,094				14,501			6			70
Total criticized loans		$	33,428			$	33,235			$	23,758			1	%		41	%
Classified loans to gross loans			1.09	%			1.03	%			0.70	%		6 bps			39 bps
Criticized loans to gross loans			1.48				1.49				1.15			(1) bps			33 bps
Allowance for credit losses ratios:
As a % of gross loans			1.24	%			1.27	%			1.27	%		(3) bps			(3) bps
As a % of nonperforming loans			163				155				295			8	%		(132	)%
As a % of nonperforming assets			163				155				259			8			(96	)
As a % of classified loans			114				123				181			(9	)		(67	)
As a % of criticized loans			84				85				111			(1	)		(27	)
Net charge-offs (recoveries)		$	175			$	(31	)		$	337			NM			(48	)%
Net charge-offs (recoveries) (7) to average gross loans			0.03				(0.01	)			0.06			4 bps			(3) bps

(1)		Excludes the guaranteed portion of loans totaling $947 thousand as of March 31, 2026. There was no guaranteed portion as of June 30, 2026 and 2025.
(2)		Excludes loans held-for-sale.
(3)		Excludes the guaranteed portion of loans totaling $30.5 million, $30.8 million and $13.9 million as of June 30, 2026, March 31, 2026 and June 30, 2025, respectively.
(4)		Excludes the guaranteed portion of loans totaling $35.8 million, $35.9 million and $17.1 million as of June 30, 2026, March 31, 2026 and June 30, 2025, respectively.
(5)		Consists of special mention, substandard, doubtful and loss categories.
(6)		Consists of substandard, doubtful and loss categories.
(7)		Annualized.

Overall credit quality remained stable during the quarter. The allowance for credit losses on loans remained adequate at 1.24% of gross loans.

• Accruing loans 30-89 days past-due increased by $1.2 million, primarily driven by $4.3 million inflows into this category, mainly home mortgage loans, partially offset by $2.2 million migrating to nonaccrual loans, largely SBA loans.
• Nonperforming loans decreased by $1.0 million, primarily driven by the payoff of a $4.1 million CRE loan, partially offset by $3.3 million of loans migrating into nonaccrual status.
• Criticized loans increased modestly by $193 thousand, primarily due to $7.0 million of loan downgrades, mostly offset by $4.5 million in payoffs, including the aforementioned $4.1 million CRE loan, $1.5 million of upgrades, and $837 thousand of principal payments.

Deposits

($ in thousands)		As of																		% Change 2Q2026 vs.
		2Q2026						1Q2026						2Q2025
		Amount			%			Amount			%			Amount			%			1Q2026			2Q2025
Noninterest-bearing deposits		$	552,300		23	%		$	546,550		24	%		$	565,683		25	%		1	%		(2	)%
Money market deposits and others			426,501		18				398,756		17				431,252		19			7			(1	)
Time deposits			1,389,538		59				1,381,988		59				1,257,793		56			1			10
Total deposits		$	2,368,339		100	%		$	2,327,294		100	%		$	2,254,728		100	%		2	%		5	%

As of June 30, 2026 vs. March 31, 2026

Total deposits increased by $41.0 million or 2%, primarily driven by a $27.7 million increase in money market deposits and others deposits. The growth was primarily attributable to higher balances from existing customers, as well as the addition of new retail accounts.

As of June 30, 2026 vs. June 30, 2025

Total deposits increased by $113.6 million or 5%, primarily driven by a $131.7 million increase in time deposits. The growth in time deposits was mainly due to new customers opening retail CD accounts, reflecting continued demand for higher-yielding products, together with higher balances from existing wholesale CD accounts.

The following table sets forth the maturity of time deposits as of June 30, 2026:

		As of June 30, 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)		$	328,950			$	182,357			$	135,495			$	98,715			$	869			$	746,386
Time deposits ($250 or less)			273,066				210,667				75,238				82,213				1,968				643,152
Total time deposits		$	602,016			$	393,024			$	210,733			$	180,928			$	2,837			$	1,389,538
Weighted average rate			3.91	%			3.98	%			3.80	%			3.92	%			2.68	%			3.91	%

CAPITAL

On July 23, 2026, the Company’s Board of Directors declared a quarterly cash dividend of $0.14 per share. The dividend is payable on or about August 20, 2026, to shareholders of record as of the close of business on August 6, 2026. The principal source of funds from which the Company pays dividends are the dividends received from the Bank. During the second 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		13.32	%		13.35	%		10.00	%		10.50	%
Tier 1 capital		10.98			12.10			8.00			8.50
CET1 capital		10.98			12.10			6.50			7.00
Tier 1 leverage		9.21			10.15			5.00			4.00

(1)		Regulatory capital requirements apply only to Open Bank, and OP Bancorp’s ratios are presented solely for information purposes.
(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.

OP Bancorp (1)														% or Basis Point Change 2Q2026 vs.
		2Q2026				1Q2026				2Q2025				1Q2026		2Q2025
Risk-Based Capital Ratios:
Total capital			13.32	%			13.17	%			12.26	%		15 bps		106 bps
Tier 1 capital			10.98				10.83				11.01			15 bps		(3) bps
CET1 capital			10.98				10.83				11.01			15 bps		(3) bps
Tier 1 leverage			9.21				9.07				8.96			14 bps		25 bps
Risk-weighted Assets ($ in thousands)		$2,267,359				$2,244,621				$2,063,034				1 %		10 %

(1)		Regulatory capital requirements apply only to Open Bank, and OP Bancorp’s ratios are presented solely for information purposes.

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 one loan production office in Bellevue, Washington. The Bank commenced its operations on June 10, 2005 as First Standard Bank and changed its name to Open Bank in October 2010. Its headquarters is located at 1000 Wilshire Blvd., Suite 500, Los Angeles, California 90017. Phone 213.892.9999; www.myopenbank.com.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

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

Our forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from those projected or could cause us to change plans or strategies or otherwise to take actions that differ from those we currently expect. The known risks and uncertainties that may have these effects are described in Part II, Item 1A, of our Quarterly Report on Form 10-Q for the period ended March 31, 2026, 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, except share and per share data)		As of												% Change 2Q2026 vs.
		2Q2026				1Q2026				2Q2025				1Q2026			2Q2025
Assets
Cash and due from banks		$	21,812			$	12,842			$	16,592			70	%		31	%
Interest-bearing deposits with banks			153,239				147,418				188,796			4			(19	)
Cash and cash equivalents			175,051				160,260				205,388			9			(15	)
AFS debt securities, at fair value			202,506				209,006				175,000			(3	)		16
Other investments			18,824				17,213				17,101			9			10
Loans held-for-sale			21,305				9,498				20,016			124			6
CRE			1,190,117				1,173,366				1,021,431			1			17
SBA			278,554				284,182				263,424			(2	)		6
C&I			221,623				219,367				193,359			1			15
Home mortgage			568,512				556,952				593,256			2			(4	)
Consumer and other			255				392				110			(35	)		132
Gross loans			2,259,061				2,234,259				2,071,580			1			9
Allowance for credit losses on loans			(28,100	)			(28,406	)			(26,286	)		(1	)		7
Net loans			2,230,961				2,205,853				2,045,294			1			9
Premises and equipment, net			5,298				5,516				6,852			(4	)		(23	)
Accrued interest receivable			10,172				10,683				9,991			(5	)		2
Servicing assets			10,280				9,834				10,572			5			(3	)
Company owned life insurance			23,975				23,794				23,259			1			3
Deferred tax assets, net			12,456				12,417				12,633			0			(1	)
Other real estate owned ("OREO")			—				—				1,237			—			(100	)
Operating right-of-use assets			7,732				8,253				9,887			(6	)		(22	)
Other assets			25,746				26,300				26,365			(2	)		(2	)
Total assets		$	2,744,306			$	2,698,627			$	2,563,595			2	%		7	%
Liabilities and Shareholders' Equity
Liabilities:
Noninterest-bearing		$	552,300			$	546,550			$	565,683			1	%		(2	)%
Money market and others			426,501				398,756				431,252			7			(1	)
Time deposits greater than $250			746,386				743,153				643,350			0			16
Other time deposits			643,152				638,835				614,443			1			5
Total deposits			2,368,339				2,327,294				2,254,728			2			5
FHLB advances			75,000				75,000				50,000			—			50
Subordinated note			24,629				24,607				—			0			NM
Accrued interest payable			15,949				15,181				15,720			5			1
Operating lease liabilities			9,865				10,508				12,243			(6	)		(19	)
Other liabilities			11,881				13,326				17,186			(11	)		(31	)
Total liabilities			2,505,663				2,465,916				2,349,877			2			7
Shareholders' equity:
Common stock			73,018				73,018				72,984			—			0
Additional paid-in capital			12,128				11,995				11,484			1			6
Retained earnings			164,624				158,730				143,114			4			15
Accumulated other comprehensive loss, net of tax			(11,127	)			(11,032	)			(13,864	)		1			(20	)
Total shareholders’ equity			238,643				232,711				213,718			3			12
Total liabilities and shareholders' equity		$	2,744,306			$	2,698,627			$	2,563,595			2	%		7	%
Shares of common stock outstanding, at period-end			14,926,750				14,894,239				14,885,614			0	%		0	%
Book value per share		$	15.99			$	15.62			$	14.36			2	%		11	%
Stockholders' equity to asset ratio			8.70	%			8.62	%			8.34	%		1	%		4	%
NM — Not Meaningful

CONSOLIDATED STATEMENTS OF INCOME (unaudited)

($ in thousands, except share and per share data)		For the Three Months Ended												Change 2Q2026 vs.
		2Q2026				1Q2026				2Q2025				1Q2026				2Q2025
Interest income
Interest and fees on loans		$	35,731			$	34,879			$	34,263				2	%			4	%
Interest on AFS debt securities			1,824				1,761				1,437				4				27
Other interest income			638				1,897				1,965				(66	)			(68	)
Total interest income			38,193				38,537				37,665				(1	)			1
Interest expense
Interest on deposits			16,891				16,845				17,475				0				(3	)
Interest on borrowings			744				679				469				10				59
Interest on subordinated note			490				490				—				—				100
Total interest expense			18,125				18,014				17,944				1				1
Net interest income			20,068				20,523				19,721				(2	)			2
(Reversal of) provision for credit losses			(149	)			412				1,206				(136	)			NM
Net interest income after provision for credit losses			20,217				20,111				18,515				1				9
Noninterest income
Service charges on deposits			515				463				1,017				11				(49	)
Loan servicing fees, net of amortization			974				722				900				35				8
Gains on sale of loans			3,370				2,050				1,441				64				134
Other income			792				797				610				(1	)			30
Total noninterest income			5,651				4,032				3,968				40				42
Noninterest expense
Salaries and employee benefits			9,733				9,276				9,075				5				7
Occupancy and equipment			1,901				1,811				1,584				5				20
Data processing and communication			380				411				306				(8	)			24
Professional fees			454				399				418				14				9
FDIC insurance and regulatory assessments			387				418				506				(7	)			(24	)
Promotion and advertising			104				120				232				(13	)			(55	)
Directors’ fees			164				144				198				14				(17	)
Foundation donation and other contributions			811				725				636				12				28
Other expenses			892				929				1,082				(4	)			(18	)
Total noninterest expense			14,826				14,233				14,037				4				6
Income before income tax expense			11,042				9,910				8,446				11				31
Income tax expense			3,064				2,676				2,113				14				45
Net income		$	7,978			$	7,234			$	6,333				10	%			26	%
EPS - basic		$	0.54			$	0.49			$	0.42			$	0.05			$	0.12
EPS - diluted			0.53				0.48				0.42				0.05				0.11
Weighted average shares:
- Basic			14,903,398				14,890,929				14,859,718				0	%			0	%
- Diluted			14,942,130				14,930,173				14,859,718				0				1
ROAA (1)			1.18	%			1.08	%			1.00	%		10 bps				18 bps
ROAE (1)			13.61				12.56				11.97			105 bps				164 bps
Efficiency ratio (2)			57.64				57.97				59.25			(33) bps				(161) bps

NM — Not Meaningful
(1)		Annualized.
(2)		Represents noninterest expense divided by the sum of net interest income and noninterest income.

CONSOLIDATED STATEMENTS OF INCOME (unaudited)

($ in thousands, except share and per share data)		For the Six Months Ended
		2Q2026				2Q2025				Change
Interest income
Interest and fees on loans		$	70,610			$	65,952				7	%
Interest on AFS debt securities			3,585				2,933				22
Other interest income			2,535				3,639				(30	)
Total interest income			76,730				72,524				6
Interest expense
Interest on deposits			33,736				34,083				(1	)
Interest on borrowings			1,423				1,302				9
Interest on subordinated note			980				—				NM
Total interest expense			36,139				35,385				2
Net interest income			40,591				37,139				9
Provision for credit losses			263				1,942				(86	)
Net interest income after provision for credit losses			40,328				35,197				15
Noninterest income
Service charges on deposits			978				2,017				(52	)%
Loan servicing fees, net of amortization			1,696				1,907				(11	)
Gains on sale of loans			5,420				3,460				57
Other income			1,589				1,400				14
Total noninterest income			9,683				8,784				10
Noninterest expense
Salaries and employee benefits			19,009				17,851				6
Occupancy and equipment			3,712				3,165				17
Data processing and communication			791				602				31
Professional fees			853				825				3
FDIC insurance and regulatory assessments			805				993				(19	)
Promotion and advertising			224				388				(42	)
Directors’ fees			308				378				(19	)
Foundation donation and other contributions			1,536				1,192				29
Other expenses			1,821				2,457				(26	)
Total noninterest expense			29,059				27,851				4
Income before income tax expense			20,952				16,130				30
Income tax expense			5,740				4,237				35
Net income		$	15,212			$	11,893				28	%
EPS - basic		$	1.02			$	0.79			$	0.23
EPS - diluted			1.02				0.79				0.23
Weighted average shares:
- Basic			14,897,198				14,858,483				0	%
- Diluted			14,936,522				14,858,483				1	%
ROAA (1)			1.13	%			0.96	%		17 bps
ROAE (1)			13.09				11.36			173 bps
Efficiency ratio (2)			57.80				60.65			(285) bps

NM — Not Meaningful
(1)		Annualized.
(2)		Represents noninterest expense divided by the sum of net interest income and noninterest income.

ASSET QUALITY BY LOAN TYPE

($ in thousands)		2Q2026			1Q2026			2Q2025
Accruing delinquent loans 30-89 days past due by loan type (1) :
CRE		$	723		$	—		$	—
SBA			3,173			5,374			4,509
C&I			26			9			—
Home mortgage			3,152			3,911			298
Total 30-59 days			7,074			9,294			4,807
CRE			—			—			—
SBA			972			—			1,883
C&I			77			17			—
Home mortgage			2,363			—			3,114
Total 60-89 days			3,412			17			4,997
CRE			723			—			—
SBA			4,145			5,374			6,392
C&I			103			26			—
Home mortgage			5,515			3,911			3,412
Total accruing delinquent loans 30-89 days past due		$	10,486		$	9,311		$	9,804
Nonaccrual loans (2) by loan type:
CRE		$	3,747		$	7,307		$	1,802
SBA			11,200			10,597			5,696
C&I			—			393			—
Home mortgage			1,425			—			1,418
Total nonaccrual		$	16,372		$	18,297		$	8,916
Criticized loans(3) by loan type:
CRE		$	7,217		$	10,057		$	8,816
SBA			21,859			20,016			12,949
C&I			1,390			1,620			575
Home mortgage			2,962			1,542			1,418
Total criticized		$	33,428		$	33,235		$	23,758

(1)		Excludes the guaranteed portion of loans totaling $947 thousand as of March 31, 2026. There was no guaranteed portion as of June 30, 2026 and 2025.
(2)		Excludes the guaranteed portion of loans that were in liquidation totaling $30.5 million, $30.8 million and $13.9 million as of June 30, 2026, March 31, 2026 and June 30, 2025, respectively.
(3)		Excludes the guaranteed portion of loans that were in liquidation totaling $35.8 million, $35.9 million and $17.1 million as of June 30, 2026, March 31, 2026 and June 30, 2025, respectively.

AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS

		For the Three Months Ended
		2Q2026										1Q2026									2Q2025
($ 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		$	128,022		$	416		1.29	%	(2)		$	145,013		$	1,326		3.66	%		$	147,874		$	1,648		4.41	%
Other investments			18,531			222		4.79					17,232			571		13.24				16,961			317		7.47
AFS debt securities, at fair value			206,877			1,824		3.53					205,247			1,761		3.43				180,193			1,437		3.19
CRE			1,171,097			18,691		6.40					1,154,515			17,814		6.26				1,028,961			16,013		6.24
SBA			314,060			6,077		7.76					292,821			5,980		8.28				283,130			6,618		9.38
C&I			206,978			3,517		6.82					212,941			3,552		6.77				195,547			3,667		7.52
Home mortgage			560,842			7,437		5.30					565,185			7,508		5.31				587,454			7,962		5.42
Consumer and other			293			9		11.76					1,287			25		7.99				76			3		15.86
Loans (2)			2,253,270			35,731		6.36					2,226,749			34,879		6.33				2,095,168			34,263		6.56
Total interest-earning assets			2,606,700			38,193		5.87					2,594,241			38,537		6.00				2,440,196			37,665		6.18
Noninterest-earning assets			87,072										76,830									83,394
Total assets		$	2,693,772									$	2,671,071								$	2,523,590
Interest-bearing liabilities:
Money market deposits and others		$	404,975		$	3,174		3.14	%			$	393,242		$	3,009		3.10	%		$	408,667		$	3,586		3.52	%
Time deposits			1,392,628			13,717		3.95					1,390,491			13,836		4.04				1,267,363			13,889		4.40
Total interest-bearing deposits			1,797,603			16,891		3.77					1,783,733			16,845		3.83				1,676,030			17,475		4.18
Borrowings			81,816			744		3.65					75,834			679		3.63				46,707			469		4.04
Subordinated note			24,622			490		7.96					24,600			490		7.97				—			—		—
Total interest-bearing liabilities			1,904,041			18,125		3.82					1,884,167			18,014		3.88				1,722,737			17,944		4.18
Noninterest-bearing liabilities:
Noninterest-bearing deposits			518,218										516,722									547,545
Other noninterest-bearing liabilities			36,969										39,756									41,624
Total noninterest-bearing liabilities			555,187										556,478									589,169
Shareholders’ equity			234,544										230,426									211,684
Total liabilities and shareholders’ equity		$	2,693,772									$	2,671,071								$	2,523,590
Net interest income / interest rate spreads					$	20,068		2.05	%						$	20,523		2.12	%					$	19,721		2.00	%
Net interest margin								3.08	%									3.19	%								3.23	%
Cost of deposits & cost of funds:
Total deposits / cost of deposits		$	2,315,821		$	16,891		2.93	%			$	2,300,455		$	16,845		2.97	%		$	2,223,575		$	17,475		3.15	%
Total funding liabilities / cost of funds			2,422,259			18,125		3.00					2,400,889			18,014		3.04				2,270,282			17,944		3.17

		For the Six Months Ended
		2Q2026										2Q2025
($ in thousands)		Average Balance			Interest Income/Expense			Average Yield/Rate (1)				Average Balance			Interest Income/Expense			Average Yield/Rate (1)
Interest-earning assets:
Interest-bearing deposits in other banks		$	136,470		$	1,743		2.54	%	(2)		$	136,038		$	3,020		4.41	%
Other investments			17,885			792		8.86					16,716			619		7.40
AFS debt securities, at fair value			206,066			3,585		3.48					182,409			2,933		3.22
CRE			1,162,852			36,505		6.33					1,014,772			30,993		6.16
SBA			303,499			12,057		8.01					274,589			12,825		9.42
C&I			209,943			7,069		6.79					203,781			7,445		7.37
Home mortgage			563,002			14,945		5.31					557,058			14,681		5.27
Consumer & other			787			34		8.70					154			8		11.27
Loans (3)			2,240,083			70,610		6.35					2,050,354			65,952		6.47
Total interest-earning assets			2,600,504			76,730		5.94					2,385,517			72,524		6.11
Noninterest-earning assets			81,980										80,624
Total assets		$	2,682,484									$	2,466,141
Interest-bearing liabilities:
Money market deposits and others		$	399,141		$	6,183		3.12	%			$	381,387		$	6,671		3.53	%
Time deposits			1,391,565			27,553		3.99					1,237,862			27,412		4.47
Total interest-bearing deposits			1,790,706			33,736		3.80					1,619,249			34,083		4.24
Borrowings			78,841			1,423		3.64					62,736			1,302		4.19
Subordinated note			24,612			980		7.96					—			—		—
Total interest-bearing liabilities			1,894,159			36,139		3.85					1,681,985			35,385		4.24
Noninterest-bearing liabilities:
Noninterest-bearing deposits			517,474										534,870
Other noninterest-bearing liabilities			38,355										39,829
Total noninterest-bearing liabilities			555,829										574,699
Shareholders’ equity			232,496										209,457
Total liabilities and shareholders’ equity		$	2,682,484									$	2,466,141
Net interest income / interest rate spreads					$	40,591		2.09	%						$	37,139		1.87	%
Net interest margin								3.13	%									3.12	%
Cost of deposits & cost of funds:
Total deposits / cost of deposits		$	2,308,180		$	33,736		2.95	%			$	2,154,119		$	34,083		3.19	%
Total funding liabilities / cost of funds			2,411,633			36,139		3.02					2,216,855			35,385		3.22

(1)		Annualized.
(2)		Interest income includes a one-time $739 thousand adjustment recorded during the second quarter of 2026 related to the correction of prior-period interest accruals on the Federal Reserve Bank account.
(3)		Includes loans held-for-sale.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260723308533/en/

Investor Relations
OP Bancorp
Jaehyun Park
EVP & CFO
213.593.4865
jaehyun.park@myopenbank.com

Source: OP Bancorp