OP Bancorp Reports Third Quarter 2025 Net Income of $6.7 Million, Diluted EPS of $0.45

compared with second quarter 2025 net income of $6.3 million, diluted EPS of $0.42, and third quarter 2024 net income of $5.4 million, diluted EPS of $0.36

Higher revenue and net income; improved efficiency ratio; stable credit quality

LOS ANGELES,--(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												Third Quarter Highlights
			3Q2025				2Q2025				3Q2024			Comparisons reflect 3Q25 vs. 2Q25
Income Statement:														Income Statement
Net interest income		$	20,346			$	19,721			$	16,506			Net interest income increased 3% and net interest margin expanded 3 bps to 3.26%. Noninterest income increased 4%. Revenue increased 3%. Noninterest expense decreased 3% and efficiency ratio improved to 55.68%. Net income increased 6%. Diluted EPS increased 7% to $0.45.
Noninterest income			4,130				3,968				4,240
Revenue			24,476				23,689				20,746
Provision for credit losses			1,175				1,206				448
Noninterest expense			13,629				14,037				12,720
Net income		$	6,703			$	6,333			$	5,436
Diluted Earnings Per Share (“EPS”)		$	0.45			$	0.42			$	0.36
Net interest margin (1)			3.26	%			3.23	%			2.95	%
Efficiency ratio (2)			55.68				59.25				61.31
Balance Sheet:														Balance Sheet
Average loans (3)		$	2,132,225			$	2,095,168			$	1,905,952			Average loans increased 2%. Average deposits remained relatively unchanged.
Average deposits			2,229,591				2,223,575				1,998,633
Credit Quality:														Credit Quality
Net charge-offs (1) to average gross loans			0.04	%			0.06	%			0.01	%		Net loan charge-offs stayed at a low level. Allowance for credit losses to gross loans remained stable.
Allowance for credit losses on loans to gross loans			1.27				1.27				1.19
Selected Ratios:														Performance and Capital
Return on average assets ("ROA") (1)			1.04	%			1.00	%			0.94	%		ROA and ROE improved, reflecting enhanced profitability and efficient use of assets and equity.
Return on average equity ("ROE") (1)			12.36				11.97				10.95
Common equity tier 1 capital (“CET1”)			10.92				11.01				11.57			CET1 remained strong.

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

Sang K. Oh, President and Chief Executive Officer:

“We delivered another solid quarter of performance, highlighted by a 6% increase in net income supported by a 3% rise in revenue and a 3% decrease in noninterest expense compared to prior quarter. Our net interest margin expanded by 3 basis points to 3.26%, and our efficiency ratio improved to 55.68%, reflecting our continued focus on profitability and operational discipline. Credit quality remained stable, with low net charge-offs and a steady allowance for credit losses, demonstrating the strength of our portfolio and prudent risk management. As we look ahead, we remain focused on driving sustainable growth and maintaining sound financial management,” said Sang K. Oh, President and Chief Executive Officer.”

INCOME STATEMENT HIGHLIGHTS

Net Interest Income and Net Interest Margin

($ in thousands)		For the Three Months Ended									% Change 3Q2025 vs.
		3Q2025			2Q2025			3Q2024			2Q2025			3Q2024
Interest Income
Interest income		$	38,522		$	37,665		$	35,299		2	%		9	%
Interest expense			18,176			17,944			18,793		1			(3	)
Net interest income		$	20,346		$	19,721		$	16,506		3	%		23	%

($ in thousands)		For the Three Months Ended																		Average Yield/Rate Change 3Q2025 vs.
		3Q2025						2Q2025						3Q2024
		Interest Income/ Expense			Average Yield/Rate(1)			Interest Income/ Expense			Average Yield/Rate(1)			Interest Income/ Expense			Average Yield/Rate(1)			2Q2025		3Q2024
Interest-earning Assets:
Loans		$	35,001		6.52	%		$	34,263		6.56	%		$	31,885		6.66	%		(4) bps		(14) bps
Total interest-earning assets			38,522		6.16				37,665		6.18				35,299		6.30			(2) bps		(14) bps
Interest-bearing Liabilities:
Interest-bearing deposits			17,442		4.07				17,475		4.18				17,921		4.85			(11) bps		(78) bps
Total interest-bearing liabilities			18,176		4.06				17,944		4.18				18,793		4.82			(12) bps		(76) bps
Ratios:
Net interest income / interest rate spreads			20,346		2.10				19,721		2.00				16,506		1.48			10 bps		62 bps
Net interest margin					3.26						3.23						2.95			3 bps		31 bps
Total deposits / cost of deposits			17,442		3.10				17,475		3.15				17,921		3.57			(5) bps		(47) bps
Total funding liabilities / cost of funds			18,176		3.13				17,944		3.17				18,793		3.60			(4) bps		(47) bps
(1) Annualized.

($ in thousands)		For the Three Months Ended																					Average Yield Change 3Q2025 vs.
		3Q2025							2Q2025							3Q2024
		Interest Income				Average Yield(1)			Interest Income				Average Yield(1)			Interest Income				Average Yield(1)			2Q2025		3Q2024
Loan Yield Component:
Contractual interest rate		$	34,312			6.40	%		$	33,437			6.40	%		$	31,182			6.52	%		— bps		(12) bps
Accretion of SBA loan discount(2)			972			0.18				785			0.15				918			0.19			3 bps		(1) bps
Amortization of net deferred fees			70			0.01				(60	)		(0.01	)			23			0.00			2 bps		1 bps
Amortization of premium			(321	)		(0.06	)			(329	)		(0.06	)			(487	)		(0.10	)		— bps		4 bps
Amortization of premium - Home mortgage payoffs			(35	)		(0.01	)			(63	)		(0.01	)			—			—			— bps		(1) bps
Net interest recognized on nonaccrual loans			(224	)		(0.04	)			162			0.03				(61	)		(0.01	)		(7) bps		(3) bps
Prepayment penalty income and other fees(3)			227			0.04				331			0.06				310			0.06			(2) bps		(2) bps
Yield on loans		$	35,001			6.52	%		$	34,263			6.56	%		$	31,885			6.66	%		(4) bps		(14) bps

(1)	Annualized.
(2)	Includes discount accretion from SBA loan payoffs of $499 thousand, $293 thousand and $426 thousand for the three months ended September 30, 2025, June 30, 2025 and September 30, 2024, respectively.
(3)	Includes prepayment penalty income of $127 thousand, $166 thousand and $114 thousand for the three months ended September 30, 2025, June 30, 2025 and September 30, 2024, respectively, from Commercial Real Estate (“CRE”) and SBA loans.

Third Quarter 2025 vs. Second Quarter 2025

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

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

Third Quarter 2025 vs. Third Quarter 2024

Net interest income increased by $3.8 million, or 23%. The increase was due to loan growth and lower deposit rates. These changes were partially offset by interest-bearing deposit growth. Net interest margin rose 31 basis points to 3.26%.

• Loans: Interest income increased by $3.1 million, largely driven by a $226.3 million increase in average loan balances. This increase was partially offset by a 14 basis point decline in loan yields, reflecting the repricing of existing loans at lower interest rates following the 2024 reduction in the federal funds rate.
• Deposits: Interest expense decreased by $479 thousand, mainly driven by a 78 basis point reduction in interest-bearing deposit costs, resulting from the repricing of deposit products in response to the federal funds rate cut implemented in 2024. This decrease was partially offset by a $230.2 million increase in average interest-bearing deposit balances.

Provision for Credit Losses

($ in thousands)		For the Three Months Ended											$ Change 3Q2025 vs.
			3Q2025				2Q2025				3Q2024			2Q2025				3Q2024
Provision for credit losses on loans		$	1,206			$	1,255			$	234		$	(49	)		$	972
Provision for (reversal of) credit losses on off-balance sheet exposure			(31	)			(49	)			214			18				(245	)
Provision for credit losses		$	1,175			$	1,206			$	448		$	(31	)		$	727

Third Quarter 2025 vs. Second Quarter 2025

Provision for credit losses on loans remained relatively stable, decreasing by $49 thousand. The modest decline was primarily driven by reductions in qualitative reserves, following qualitative factor adjustments made after management reassessed the underlying assumptions. These adjustments were mostly offset by the increases resulting from risk rating downgrades and net charge-offs.

Third Quarter 2025 vs. Third Quarter 2024

Provision for credit losses on loans increased by $972 thousand, primarily due to higher historical loss factors stemming from risk rating downgrades, increased specific reserves, net charge-offs, and loan growth compared to the prior period.

Noninterest Income

($ in thousands)		For the Three Months Ended												% Change 3Q2025 vs.
			3Q2025				2Q2025				3Q2024			2Q2025				3Q2024
Noninterest Income
Service charges on deposits		$	725			$	1,017			$	889			(29	)%			(18	)%
Loan servicing fees, net of amortization			724				900				693			(20	)			4
Gains on sale of loans			2,037				1,441				2,088			41				(2	)
Other income			644				610				570			6				13
Total noninterest income		$	4,130			$	3,968			$	4,240			4	%			(3	)%

Third Quarter 2025 vs. Second Quarter 2025

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

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

Third Quarter 2025 vs. Third Quarter 2024

Noninterest income decreased by $110 thousand, or 3%, primarily due to lower service charges on deposits.

• Service Charges on Deposits: Decreased by $164 thousand, largely driven by the closure of certain currency exchange-related accounts.

Noninterest Expense

($ in thousands)		For the Three Months Ended									% Change 3Q2025 vs.
			3Q2025			2Q2025			3Q2024		2Q2025			3Q2024
Noninterest Expense
Salaries and employee benefits		$	8,892		$	9,075		$	8,031		(2	)%		11	%
Occupancy and equipment			1,676			1,584			1,676		6			—
Data processing and communication			263			306			634		(14	)		(59	)
Professional fees			419			418			346		0			21
FDIC insurance and regulatory assessments			428			506			391		(15	)		9
Promotion and advertising			126			232			151		(46	)		(17	)
Directors’ fees			151			198			154		(24	)		(2	)
Foundation donation and other contributions			671			636			549		6			22
Other expenses			1,003			1,082			788		(7	)		27
Total noninterest expense		$	13,629		$	14,037		$	12,720		(3	)%		7	%

Third Quarter 2025 vs. Second Quarter 2025

Noninterest expense decreased by $408 thousand, or 3%, primarily due to reductions in salaries and employee benefits, promotion and advertising, and other expenses.

• Salaries and Employee Benefits: Decreased by $183 thousand, mainly due to lower incentive compensation accruals, resulting from a non-recurring adjustment recognized in the prior quarter.
• Promotion and Advertising: Decreased by $106 thousand, reflecting the absence of a one-time accrual adjustment that was recorded in the second quarter of 2025.
• Other Expenses: Decreased by $79 thousand, primarily due to reduced armored car service costs following the closure of certain currency exchange-related accounts.

Third Quarter 2025 vs. Third Quarter 2024

Noninterest expense increased by $909 thousand, or 7%, primarily due to higher salaries and employee benefits, and other expenses, partially offset by lower data processing and communication.

• Salaries and Employee Benefits: Increased by $861 thousand, mainly driven by staffing growth and annual merit-based salary adjustments. Higher health insurance costs also contributed to the increase in employee benefits.
• Other Expenses: Increased by $215 thousand, primarily due to reclassification of credit-related fees collections from contra-expense to income in 2025. This regrouping reflects a change in presentation rather than a change in underlying activity.
• Data Processing and Communication: Decreased by $371 thousand, largely due to contractual credits received following the conversion to a new core banking system in the fourth quarter of 2024.

Income Tax Expense

Third Quarter 2025 vs. Second Quarter 2025

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

Third Quarter 2025 vs. Third Quarter 2024

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

BALANCE SHEET HIGHLIGHTS

Loans

($ in thousands)		As of									% Change 3Q2025 vs.
			3Q2025			2Q2025			3Q2024		2Q2025			3Q2024
CRE		$	1,092,808		$	1,021,431		$	966,472		7	%		13	%
SBA			256,211			263,424			252,379		(3	)		2
C&I			214,419			193,359			212,476		11			1
Home mortgage			587,641			593,256			499,666		(1	)		18
Consumer & other			138			110			14		25			886
Gross loans		$	2,151,217		$	2,071,580		$	1,931,007		4	%		11	%

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

($ in thousands)		For the Three Months Ended																		% Change in Amounts 3Q2025 vs.
		3Q2025						2Q2025						3Q2024						2Q2025			3Q2024
		Amount			Rate			Amount			Rate			Amount			Rate
CRE		$	98,799		6.36	%		$	39,734		7.00	%		$	64,249		7.50	%		149	%		54	%
SBA			15,051		8.72				33,811		8.64				20,167		9.75			(55	)		(25	)
C&I			9,984		6.96				3,136		7.72				7,861		8.18			218			27
Home mortgage			6,861		6.69				54,837		6.64				10,205		7.23			(87	)		(33	)
Consumer and other			—		—				—		—				—		—			—			—
Gross loans (1)		$	130,695		6.69	%		$	131,518		7.29	%		$	102,482		7.97	%		(1	)%		28	%
(1) Excludes changes in line utilization.

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

($ in thousands)		For the Three Months Ended
		3Q2025				2Q2025				3Q2024
Beginning Balance		$	2,071,580			$	2,043,885			$	1,870,106
Originations			130,695				131,518				102,482
Net change in line utilization			31,167				27,287				49,695
Purchases			8,930				1,750				862
Sales			(36,806	)			(25,320	)			(35,576	)
Payoffs & paydowns			(67,639	)			(90,923	)			(54,440	)
Decrease (increase) in loans held-for-sale			13,536				(15,461	)			(1,674	)
Other			(246	)			(1,156	)			(448	)
Total			79,637				27,695				60,901
Ending balance		$	2,151,217			$	2,071,580			$	1,931,007

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

($ in thousands)		As of
		3Q2025						2Q2025						3Q2024
		%			Rate			%			Rate			%			Rate
Fixed rate		31	%		5.61	%		31	%		5.54	%		36	%		5.42	%
Hybrid rate		41			5.89			40			5.81			35			5.60
Variable rate		28			8.02			29			8.16			29			8.94
Gross loans		100	%		6.40	%		100	%		6.42	%		100	%		6.52	%

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

($ in thousands)		As of September 30, 2025
		Within One Year						One Year Through Five Years						After Five Years						Total
		Amount			Rate			Amount			Rate			Amount			Rate			Amount			Rate
Fixed rate		$	212,026		5.66	%		$	274,741		6.02	%		$	191,661		4.98	%		$	678,428		5.61	%
Hybrid rate			—		—				209,456		4.74				664,989		6.26				874,445		5.89
Variable rate			84,705		7.60				158,959		7.49				354,680		8.36				598,344		8.02
Gross loans		$	296,731		6.21	%		$	643,156		5.97	%		$	1,211,330		6.67	%		$	2,151,217		6.40	%

Allowance for Credit Losses

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

($ in thousands)		As of and For the Three Months Ended												$ Change 3Q2025 vs.
			3Q2025				2Q2025				3Q2024				2Q2025				3Q2024
Allowance for credit losses on loans, beginning		$	26,286			$	25,368			$	22,760			$	918			$	3,526
Provision for credit losses on loans			1,206				1,255				234				(49	)			972
Gross charge-offs			(195	)			(542	)			(40	)			347				(155	)
Gross recoveries			2				205				6				(203	)			(4	)
Net (charge-offs) recoveries			(193	)			(337	)			(34	)			144				(159	)
Allowance for credit losses on loans, ending		$	27,299			$	26,286			$	22,960			$	1,013			$	4,339
Allowance for credit losses on off-balance sheet exposure, beginning		$	360			$	409			$	458			$	(49	)		$	(98	)
Provision for (reversal of) credit losses on off-balance sheet exposure			(31	)			(49	)			214				18				(245	)
Allowance for credit losses on off-balance sheet exposure, ending		$	329			$	360			$	672			$	(31	)		$	(343	)

Asset Quality

($ in thousands)		As of and For the Three Months Ended												% or Basis Point Change 3Q2025 vs.
			3Q2025				2Q2025				3Q2024			2Q2025			3Q2024
Accruing loans 30-89 days past due		$	5,386			$	9,804			$	10,306			(45	)%		(48	)%
As a % of gross loans			0.25	%			0.47	%			0.53	%		(22) bps			(28) bps
Nonperforming loans (1)		$	12,312			$	8,916			$	3,620			38	%		240	%
Nonperforming assets (1)			13,157				10,153				4,857			30			171
Nonperforming loans to gross loans			0.57	%			0.43	%			0.19	%		14 bps			38 bps
Nonperforming assets to total assets			0.50				0.40				0.20			10 bps			30 bps
Criticized loans (2)(3)		$	28,075			$	23,758			$	16,500			18.2	%		70.2	%
Criticized loans to gross loans			1.31	%			1.15	%			0.85	%		16 bps			46 bps
Allowance for credit losses ratios:
As a % of gross loans			1.27	%			1.27	%			1.19	%		— bps			8 bps
As a % of nonperforming loans			222				295				634			(73	)%		(412	)%
As a % of nonperforming assets			207				259				473			(52	)		(266	)
As a % of criticized loans			97				111				139			(14	)		(42	)
Net charge-offs (4) to average gross loans			0.04				0.06				0.01			(2) bps			3 bps

(1)	Excludes the guaranteed portion of loans that were in liquidation totaling $17.6 million, $13.9 million and $11.1 million as of September 30, 2025, June 30, 2025 and September 30, 2024, respectively.
(2)	Excludes the guaranteed portion of loans that were in liquidation totaling $20.8 million, $17.1 million and $11.1 million as of September 30, 2025, June 30, 2025 and September 30, 2024, respectively.
(3)	Consists of special mention, substandard, doubtful and loss categories.
(4)	Annualized.

Credit quality remained strong during the period, with nonperforming loans at a low 0.57% of gross loans and annualized net charge-offs at just 0.04%. The allowance remained adequate at 1.27% of gross loans.

• Accruing loans 30-89 days past due decreased to $5.4 million, primarily due to $4.2 million in SBA and home mortgage loans returning to current status and $2.5 million in reclassified SBA loans to nonaccrual status. These reductions were partially offset by $2.8 million in new past due balances across various loan categories.
• Nonperforming loans increased by $3.4 million, primarily attributable to the reclassification of loans previously in the accruing 30-89 days past due category.
• Criticized loans increased by $4.3 million, primarily attributable to downgrades of SBA and home mortgage loans.

Deposits

($ in thousands)		As of																		% Change 3Q2025 vs.
		3Q2025						2Q2025						3Q2024
		Amount			%			Amount			%			Amount			%			2Q2025			3Q2024
Noninterest-bearing deposits		$	543,972		24	%		$	565,683		25	%		$	561,801		27	%		(4	)%		(3	)%
Money market deposits and others			402,891		18				431,252		19				343,188		17			(7	)		17
Time deposits			1,326,554		58				1,257,793		56				1,159,614		56			5			14
Total deposits		$	2,273,417		100	%		$	2,254,728		100	%		$	2,064,603		100	%		1	%		10	%
Estimated uninsured deposits		$	1,131,091		50	%		$	1,156,311		51	%		$	946,406		46	%		(2	)%		20	%

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

Total deposits increased by $18.7 million or 1%, primarily driven by a $68.8 million increase in time deposits, partially offset by a $28.4 million decrease in money market deposits and others, and a $21.7 million decrease in noninterest-bearing deposits. The increase in time deposits reflects new customers opening CD accounts, existing customers reallocating funds seeking higher yields, and a rise in wholesale CD balances to support loan growth. The declines in money market and noninterest-bearing deposits were primarily attributable to reductions in existing customer balances, reflecting operational funding needs.

As of September 30, 2025 vs. September 30, 2024

Total deposits increased by $208.8 million or 10%, primarily driven by growth of $166.9 million in time deposits and $59.7 million in money market deposits and others. The increase in time deposits was largely attributable to new customers opening CD accounts, reflecting a preference for higher-yielding products, as well as an increase in wholesale CD balances. The growth in money market deposits and others was mainly due to inflows from new customers and higher balances from existing customers.

The following table sets forth the maturity of time deposits as of September 30, 2025:

		As of September 30, 2025
($ in thousands)		Within Three Months				Three to Six Months				Six to Nine Months				Nine to Twelve Months				After Twelve Months				Total
Time deposits (greater than $250)		$	190,867			$	281,670			$	101,862			$	93,108			$	376			$	667,883
Time deposits ($250 or less)			236,668				194,941				105,386				120,316				1,360				658,671
Total time deposits		$	427,535			$	476,611			$	207,248			$	213,424			$	1,736			$	1,326,554
Weighted average rate			4.28	%			4.16	%			4.26	%			4.18	%			2.84	%			4.21	%

OTHER HIGHLIGHTS

Liquidity

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

($ in thousands)			3Q2025				2Q2025				3Q2024
Liquidity Assets:
Cash and cash equivalents		$	166,748			$	205,388			$	166,756
Available-for-sale ("AFS") debt securities			200,760				175,000				199,373
Liquid assets		$	367,508			$	380,388			$	366,129
Liquid assets to total assets			14	%			15	%			15	%
Available Borrowings:
Federal Home Loan Bank ("FHLB") —San Francisco		$	430,887			$	443,207			$	397,617
Federal Reserve Bank			210,584				223,373				207,782
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		$	741,471			$	766,580			$	705,399
Total available borrowings to total assets			28	%			30	%			30	%
Liquid assets and available borrowings to total deposits			49	%			51	%			52	%

Capital and Capital Ratios

On October 23, 2025, the Company’s Board of Directors declared a quarterly cash dividend of $0.12 per share of its common stock. The dividend is payable on or about November 20, 2025, to shareholders of record as of the close of business on November 6, 2025. The principal source of funds from which the Company pays dividends are the dividends received from the Bank. Future dividends are subject to Board of Directors’ approval and will depend on the Company’s earnings, financial condition, capital requirements, and other relevant factors. On August 28, 2025, the Company’s Board of Directors approved a stock repurchase program authorizing the repurchase of up to 700,000 shares of the Company’s common stock (the “Repurchase Program”). No shares were repurchased under the Repurchase Program during the third quarter of 2025.

		OP Bancorp(1)			Open Bank			Well-Capitalized Requirement			Minimum Capital Ratio+ Conservation Buffer(2)
Risk-Based Capital Ratios (3):
Total capital		12.17	%		12.06	%		10.00	%		10.50	%
Tier 1 capital		10.92			10.81			8.00			8.50
CET1 capital		10.92			10.81			6.50			7.00
Tier 1 leverage		9.01			8.93			5.00			4.00

(1)	The capital requirements are only applicable to the Bank, and the Company's ratios are included for comparison purpose.
(2)	An additional 2.5% capital conservation buffer above the minimum capital ratios are required in order to avoid limitations on distributions, including dividend payments and certain discretionary bonuses to executive officers. This buffer does not apply and is not included in the tier 1 leverage ratio.
(3)	The Company’s September 30, 2025 regulatory capital ratios and risk-weighted assets are preliminary.

OP Bancorp											% or Basis Point Change 3Q2025 vs.
			3Q2025			2Q2025			3Q2024		2Q2025		3Q2024
Risk-Based Capital Ratios:
Total capital			12.17	% (1)		12.26	%		12.79	%	(9) bps		(62) bps
Tier 1 capital			10.92	(1)		11.01			11.57		(9) bps		(65) bps
CET1 capital			10.92	(1)		11.01			11.57		(9) bps		(65) bps
Tier 1 leverage			9.01	(1)		8.96			9.30		5 bps		(29) bps
Risk-weighted Assets ($ in thousands)		$	2,127,000	(1)	$	2,063,034		$	1,876,722		3 %		13 %

(1)	The Company’s September 30, 2025 regulatory capital ratios and risk-weighted assets are preliminary.

ABOUT OP BANCORP

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

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

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

Our forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from those projected or could cause us to change plans or strategies or otherwise to take actions that differ from those we currently expect. The known risks and uncertainties that may have these effects are described in Part II, Item 1A, of our Quarterly Report on Form 10-Q for the period ended June 30, 2025, and in our other filings with the Securities and Exchange Commission. You should read all forward-looking statements in the context of the foregoing and should not consider them to be reliable predictions of future events or as assurances of a particular level of performance or intended course of action. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

CONSOLIDATED BALANCE SHEETS (unaudited)
($ in thousands)		As of												% Change 3Q2025 vs.
			3Q2025				2Q2025				3Q2024			2Q2025			3Q2024
Assets
Cash and due from banks		$	10,931			$	16,592			$	24,519			(34	)%		(55	)%
Interest-bearing deposits with banks			155,817				188,796				142,237			(17	)		10
Cash and cash equivalents			166,748				205,388				166,756			(19	)		0
AFS debt securities, at fair value			200,760				175,000				199,373			15			1
Other investments			17,164				17,101				16,520			0			4
Loans held-for-sale			6,480				20,016				8,160			(68	)		(21	)
CRE			1,092,808				1,021,431				966,472			7			13
SBA			256,211				263,424				252,379			(3	)		2
C&I			214,419				193,359				212,476			11			1
Home mortgage			587,641				593,256				499,666			(1	)		18
Consumer and other			138				110				14			25			886
Gross loans			2,151,217				2,071,580				1,931,007			4			11
Allowance for credit losses on loans			(27,299	)			(26,286	)			(22,960	)		4			19
Net loans			2,123,918				2,045,294				1,908,047			4			11
Premises and equipment, net			6,995				6,852				4,961			2			41
Accrued interest receivable			10,337				9,991				9,479			3			9
Servicing assets			10,429				10,572				10,877			(1	)		(4	)
Company owned life insurance			23,437				23,259				22,739			1			3
Deferred tax assets, net			12,099				12,633				12,288			(4	)		(2	)
Other real estate owned ("OREO")			845				1,237				1,237			(32	)		(32	)
Operating right-of-use assets			9,347				9,887				7,870			(5	)		19
Other assets			25,655				26,365				19,673			(3	)		30
Total assets		$	2,614,214			$	2,563,595			$	2,387,980			2	%		9	%
Liabilities and Shareholders' Equity
Liabilities:
Noninterest-bearing		$	543,972			$	565,683			$	561,801			(4	)%		(3	)%
Money market and others			402,891				431,252				343,188			(7	)		17
Time deposits greater than $250			667,883				643,350				564,547			4			18
Other time deposits			658,671				614,443				595,067			7			11
Total deposits			2,273,417				2,254,728				2,064,603			1			10
FHLB advances			75,000				50,000				75,000			50			—
Accrued interest payable			15,968				15,720				19,483			2			(18	)
Operating lease liabilities			11,826				12,243				8,417			(3	)		41
Other liabilities			16,504				17,186				16,874			(4	)		(2	)
Total liabilities			2,392,715				2,349,877				2,184,377			2			10
Shareholders' equity:
Common stock			72,984				72,984				73,697			—			(1	)
Additional paid-in capital			11,658				11,484				11,713			2			0
Retained earnings			148,031				143,114				131,588			3			12
Accumulated other comprehensive loss, net of tax			(11,174	)			(13,864	)			(13,395	)		(19	)		(17	)
Total shareholders’ equity			221,499				213,718				203,603			4			9
Total liabilities and shareholders' equity		$	2,614,214			$	2,563,595			$	2,387,980			2	%		9	%

CONSOLIDATED STATEMENTS OF INCOME (unaudited)
($ in thousands, except share and per share data)		For the Three Months Ended												% or Basis Point Change 3Q2025 vs.
			3Q2025				2Q2025				3Q2024			2Q2025			3Q2024
Interest income
Interest and fees on loans		$	35,001			$	34,263			$	31,885			2	%		10	%
Interest on AFS debt securities			1,699				1,437				1,626			18			4
Other interest income			1,822				1,965				1,788			(7	)		2
Total interest income			38,522				37,665				35,299			2			9
Interest expense
Interest on deposits			17,442				17,475				17,921			0			(3	)
Interest on borrowings			734				469				872			57			(16	)
Total interest expense			18,176				17,944				18,793			1			(3	)
Net interest income			20,346				19,721				16,506			3			23
Provision for credit losses			1,175				1,206				448			(3	)		162
Net interest income after provision for credit losses			19,171				18,515				16,058			4			19
Noninterest income
Service charges on deposits			725				1,017				889			(29	)		(18	)
Loan servicing fees, net of amortization			724				900				693			(20	)		4
Gains on sale of loans			2,037				1,441				2,088			41			(2	)
Other income			644				610				570			6			13
Total noninterest income			4,130				3,968				4,240			4			(3	)
Noninterest expense
Salaries and employee benefits			8,892				9,075				8,031			(2	)		11
Occupancy and equipment			1,676				1,584				1,676			6			—
Data processing and communication			263				306				634			(14	)		(59	)
Professional fees			419				418				346			0			21
FDIC insurance and regulatory assessments			428				506				391			(15	)		9
Promotion and advertising			126				232				151			(46	)		(17	)
Directors’ fees			151				198				154			(24	)		(2	)
Foundation donation and other contributions			671				636				549			6			22
Other expenses			1,003				1,082				788			(7	)		27
Total noninterest expense			13,629				14,037				12,720			(3	)		7
Income before income tax expense			9,672				8,446				7,578			15			28
Income tax expense			2,969				2,113				2,142			41			39
Net income		$	6,703			$	6,333			$	5,436			6	%		23	%
Book value per share, at period-end		$	14.88			$	14.36			$	13.75			4	%		8	%
EPS - basic			0.45				0.42				0.36			7			25
EPS - diluted			0.45				0.42				0.36			7			25
Shares of common stock outstanding, at period-end			14,885,614				14,885,614				14,811,671			—	%		0	%
Weighted average shares:
- Basic			14,885,614				14,859,718				14,812,118			0	%		0	%
- Diluted			14,919,474				14,859,718				14,812,118			0			1
ROA (1)			1.04	%			1.00	%			0.94	%		4 bps			10 bps
ROE (1)			12.36				11.97				10.95			39 bps			141 bps
Net interest margin (1)			3.26				3.23				2.95			3 bps			31 bps
Efficiency ratio (2)			55.68				59.25				61.31			(357) bps			(563) bps

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

CONSOLIDATED STATEMENTS OF INCOME (unaudited)
($ in thousands, except share and per share data)		For the Nine Months Ended
			3Q2025				3Q2024			% or Basis Point vs.
Interest income
Interest and fees on loans		$	100,953			$	92,632			9	%
Interest on AFS debt securities			4,632				4,676			(1	)
Other interest income			5,461				5,261			4
Total interest income			111,046				102,569			8
Interest expense
Interest on deposits			51,525				50,939			1
Interest on borrowings			2,036				2,951			(31	)
Total interest expense			53,561				53,890			(1	)
Net interest income			57,485				48,679			18
Provision for credit losses			3,117				1,210			158
Net interest income after provision for credit losses			54,368				47,469			15
Noninterest income
Service charges on deposits			2,742				2,294			20	%
Loan servicing fees, net of amortization			2,631				2,040			29
Gains on sale of loans			5,497				6,116			(10	)
Other income			2,044				1,560			31
Total noninterest income			12,914				12,010			8
Noninterest expense
Salaries and employee benefits			26,743				23,440			14
Occupancy and equipment			4,841				4,991			(3	)
Data processing and communication			865				1,651			(48	)
Professional fees			1,244				1,147			8
FDIC insurance and regulatory assessments			1,421				1,143			24
Promotion and advertising			514				451			14
Directors’ fees			529				489			8
Foundation donation and other contributions			1,863				1,628			14
Other expenses			3,460				2,126			63
Total noninterest expense			41,480				37,066			12
Income before income tax expense			25,802				22,413			15
Income tax expense			7,206				6,315			14
Net income		$	18,596			$	16,098			16	%
Book value per share, at period-end		$	14.88			$	13.75			8	%
EPS - basic			1.25				1.06			18
EPS - diluted			1.25				1.06			18
Shares of common stock outstanding, at period-end			14,885,614				14,811,671			0	%
Weighted average shares:
- Basic			14,867,626				14,890,479			0	%
- Diluted			14,894,309				14,890,479			0	%
ROA (1)			0.99	%			0.95	%		4 bps
ROE (1)			11.70				11.00			70 bps
Net interest margin			3.17				2.99			18 bps
Efficiency ratio (2)			58.92				61.08			(216) bps

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

ASSET QUALITY
($ in thousands)		As of and For the Three Months Ended
			3Q2025				2Q2025				3Q2024
Nonaccrual loans (1)(2)		$	12,312			$	8,916			$	3,620
Loans 90 days or more past due, accruing			—				—				—
Nonperforming loans			12,312				8,916				3,620
OREO			845				1,237				1,237
Nonperforming assets		$	13,157			$	10,153			$	4,857
Criticized loans (3) by risk categories:
Special mention loans		$	8,695			$	9,257			$	4,540
Classified loans (4)			19,380				14,501				11,960
Total criticized loans		$	28,075			$	23,758			$	16,500
Nonperforming loans to gross loans			0.57	%			0.43	%			0.19	%
Nonperforming assets to gross loans & OREO			0.61				0.49				0.25
Nonperforming assets to total assets			0.50				0.40				0.20
Classified loans to gross loans			0.90				0.70				0.62
Criticized loans to gross loans			1.31				1.15				0.85
Allowance for credit losses ratios:
As a % of gross loans			1.27	%			1.27	%			1.19	%
As a % of nonperforming loans			222				295				634
As a % of nonperforming assets			207				259				473
As a % of classified loans			141				181				192
As a % of criticized loans			97				111				139
Net charge-offs		$	193			$	337			$	34
Net charge-offs (5) to average gross loans			0.04	%			0.06	%			0.01	%

(1)	Excludes loans held-for-sale.
(2)	Excludes the guaranteed portion of loans that are in liquidation totaling $17.6 million, $13.9 million and $11.1 million as of September 30, 2025, June 30, 2025 and September 30, 2024, respectively.
(3)	Excludes the guaranteed portion of loans that are in liquidation totaling $20.8 million, $17.1 million and $11.1 million as of September 30, 2025, June 30, 2025 and September 30, 2024, respectively.
(4)	Consists of substandard, doubtful and loss categories.
(5)	Annualized.

($ in thousands)			3Q2025				2Q2025				3Q2024
Accruing delinquent loans 30-89 days past due by loan type:
CRE			$ —				$ —				$ —
SBA			1,390				4,509				1,420
C&I			617				—				—
Home mortgage			852				298				2,675
Total 30-59 days			2,859				4,807				4,095
CRE			—				—				—
SBA			378				1,883				1,180
C&I			—				—				—
Home mortgage			2,149				3,114				5,031
Total 60-89 days			2,527				4,997				6,211
CRE			—				—				—
SBA			1,768				6,392				2,600
C&I			617				—				—
Home mortgage			3,001				3,412				7,706
Total accruing delinquent loans 30-89 days past due			$ 5,386				$ 9,804				$ 10,306
Nonaccrual loans (1) by loan type:
CRE			$ 2,365				$ 1,802				$ —
SBA			8,538				5,696				3,213
C&I			—				—				407
Home mortgage			1,409				1,418				—
Total nonaccrual			$ 12,312				$ 8,916				$ 3,620
Criticized loans(2) by loan type:
CRE			$ 9,345				$ 8,816				$ 5,249
SBA			14,925				12,949				10,144
C&I			864				575				1,107
Home mortgage			2,941				1,418				—
Total criticized			$ 28,075				$ 23,758				$ 16,500

(1)	Excludes the guaranteed portion of loans that were in liquidation totaling $17.6 million, $13.9 million and $11.1 million as of September 30, 2025, June 30, 2025 and September 30, 2024, respectively.
(2)	Excludes the guaranteed portion of loans that were in liquidation totaling $20.8 million, $17.1 million and $11.1 million as of September 30, 2025, June 30, 2025 and September 30, 2024, respectively.

AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS
		For the Three Months Ended
		3Q2025									2Q2025									3Q2024
($ in thousands)		Average Balance			Interest Income/ Expense			Average Yield/Rate(1)			Average Balance			Interest Income/ Expense			Average Yield/Rate(1)			Average Balance			Interest Income/ Expense			Average Yield/Rate(1)
Interest-earning assets:
Interest-bearing deposits in other banks		$	134,263		$	1,502		4.38	%		$	147,874		$	1,648		4.41	%		$	109,003		$	1,474		5.29	%
Other investments			17,112			320		7.48				16,961			317		7.47				16,432			314		7.65
AFS debt securities, at fair value			199,766			1,699		3.40				180,193			1,437		3.19				199,211			1,626		3.26
CRE			1,065,460			16,689		6.21				1,028,961			16,013		6.24				945,828			14,759		6.21
SBA			286,556			6,841		9.47				283,130			6,618		9.38				268,687			7,107		10.52
C&I			188,146			3,537		7.46				195,547			3,667		7.52				187,748			3,642		7.72
Home mortgage			591,934			7,931		5.36				587,454			7,962		5.42				503,148			6,364		5.06
Consumer and other			129			3		9.86				76			3		15.86				541			13		9.37
Loans (2)			2,132,225			35,001		6.52				2,095,168			34,263		6.56				1,905,952			31,885		6.66
Total interest-earning assets			2,483,366			38,522		6.16				2,440,196			37,665		6.18				2,230,598			35,299		6.30
Noninterest-earning assets			83,238									83,394									88,747
Total assets		$	2,566,604								$	2,523,590								$	2,319,345
Interest-bearing liabilities:
Money market deposits and others		$	425,248		$	3,793		3.54	%		$	408,667		$	3,586		3.52	%		$	343,429		$	3,601		4.17	%
Time deposits			1,275,417			13,649		4.25				1,267,363			13,889		4.40				1,127,078			14,320		5.05
Total interest-bearing deposits			1,700,665			17,442		4.07				1,676,030			17,475		4.18				1,470,507			17,921		4.85
Borrowings			76,250			734		3.82				46,707			469		4.04				80,326			872		4.32
Total interest-bearing liabilities			1,776,915			18,176		4.06				1,722,737			17,944		4.18				1,550,833			18,793		4.82
Noninterest-bearing liabilities:
Noninterest-bearing deposits			528,926									547,545									528,126
Other noninterest-bearing liabilities			43,890									41,624									41,892
Total noninterest-bearing liabilities			572,816									589,169									570,018
Shareholders’ equity			216,873									211,684									198,494
Total liabilities and shareholders’ equity		$	2,566,604								$	2,523,590								$	2,319,345
Net interest income / interest rate spreads					$	20,346		2.10	%					$	19,721		2.00	%					$	16,506		1.48	%
Net interest margin								3.26	%								3.23	%								2.95	%
Cost of deposits & cost of funds:
Total deposits / cost of deposits		$	2,229,591		$	17,442		3.10	%		$	2,223,575		$	17,475		3.15	%		$	1,998,633		$	17,921		3.57	%
Total funding liabilities / cost of funds			2,305,841			18,176		3.13				2,270,282			17,944		3.17				2,078,959			18,793		3.60

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

		For the Nine Months Ended
		3Q2025									3Q2024
($ in thousands)		Average Balance			Interest Income/Expense			Average Yield/Rate(1)			Average Balance			Interest Income/Expense			Average Yield/Rate(1)
Interest-earning assets:
Interest-bearing deposits in other banks		$	135,439		$	4,522		4.40	%		$	106,022		$	4,310		5.34	%
Other investments			16,851			939		7.43				16,335			951		7.76
AFS debt securities, at fair value			188,258			4,632		3.28				195,383			4,676		3.19
CRE			1,031,854			47,681		6.18				919,566			42,230		6.13
SBA			278,621			19,666		9.44				261,293			21,436		10.96
C&I			198,512			10,982		7.40				165,343			9,679		7.82
Home mortgage			568,811			22,612		5.30				505,669			19,207		5.06
Consumer & other			146			12		10.85				1,046			80		10.10
Loans (2)			2,077,944			100,953		6.49				1,852,917			92,632		6.68
Total interest-earning assets			2,418,492			111,046		6.13				2,170,657			102,569		6.30
Noninterest-earning assets			81,505									88,594
Total assets		$	2,499,997								$	2,259,251
Interest-bearing liabilities:
Money market deposits and others		$	396,168		$	10,463		3.53	%		$	349,766		$	11,035		4.21	%
Time deposits			1,250,518			41,062		4.39				1,061,609			39,904		5.02
Total interest-bearing deposits			1,646,686			51,525		4.18				1,411,375			50,939		4.82
Borrowings			67,290			2,036		4.05				88,743			2,951		4.44
Total interest-bearing liabilities			1,713,976			53,561		4.18				1,500,118			53,890		4.80
Noninterest-bearing liabilities:
Noninterest-bearing deposits			532,867									523,951
Other noninterest-bearing liabilities			41,198									40,141
Total noninterest-bearing liabilities			574,065									564,092
Shareholders’ equity			211,956									195,041
Total liabilities and shareholders’ equity		$	2,499,997								$	2,259,251
Net interest income / interest rate spreads					$	57,485		1.95	%					$	48,679		1.50	%
Net interest margin								3.17	%								2.99	%
Cost of deposits & cost of funds:
Total deposits / cost of deposits		$	2,179,553		$	51,525		3.16	%		$	1,935,326		$	50,939		3.52	%
Total funding liabilities / cost of funds			2,246,843			53,561		3.19				2,024,069			53,890		3.56

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

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20251023737701/en/

Investor Relations

OP Bancorp

Jaehyun Park

EVP & CFO

213.593.4865

jaehyun.park@myopenbank.com

Source: OP Bancorp