OP Bancorp (NASDAQ: OPBK) posts higher Q2 profit and declares $0.14 dividend
Rhea-AI Filing Summary
OP Bancorp reported preliminary unaudited results for the quarter ended June 30, 2026, with net income of $7.978 million and diluted EPS of $0.53, up from $7.234 million and $0.48 in the first quarter and $6.333 million and $0.42 a year earlier. Revenue was $25.7 million, driven by higher gains on SBA loan sales and loan servicing fees, while net interest income was $20.1 million as the net interest margin declined to 3.08% due to a one-time Federal Reserve account accrual adjustment and the absence of a prior special FHLB dividend.
Credit costs benefited from a $149 thousand reversal of provision for credit losses tied to the payoff of a previously reserved nonaccrual CRE loan. Asset quality metrics remained solid, with nonperforming loans at 0.76% of gross loans and the allowance for credit losses at 1.24% of gross loans. Gross loans reached $2.26 billion and total deposits $2.37 billion, both up modestly sequentially. Capital remained strong with a CET1 ratio of 10.98% and book value per share of $15.99.
The Board declared a quarterly cash dividend of $0.14 per share, payable on or about August 20, 2026 to shareholders of record on August 6, 2026.
Positive
- None.
Negative
- None.
Filing Explained
The filing furnishes quarterly materials rather than treating them as filed, and reports no second-quarter share repurchases.
A Form 8-K reports specified material events. Here, OP Bancorp furnished its preliminary second-quarter results, investor presentation, and dividend announcement under Items 2.02, 7.01, and 8.01; those materials are not treated as filed for Section 18 purposes or automatically incorporated into other filings.
The filing also states that no shares were repurchased under the program approved in August 2025 during the second quarter. Common shares outstanding at June 30, 2026 were
Thus, the disclosure adds no reported quarter-end repurchase reduction to the share count; it records the outstanding-share figure without identifying another cause for its level.
8-K Event Classification
4 items: 2.02, 7.01, 8.01, 9.01
4 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Net income: $7,978,000
Diluted EPS: $0.53
Revenue: $25,719,000
+5 more
8 metrics
Net income
$7,978,000
For the quarter ended June 30, 2026
Diluted EPS
$0.53
For the quarter ended June 30, 2026
Revenue
$25,719,000
Net interest income plus noninterest income, Q2 2026
Net interest margin
3.08%
Q2 2026, down from 3.19% in Q1 2026
Efficiency ratio
57.64
Q2 2026 noninterest expense over total revenue
Gross loans
$2,259,061,000
Balance at June 30, 2026
Total deposits
$2,368,339,000
Balance at June 30, 2026
CET1 capital ratio
10.98%
OP Bancorp ratio at June 30, 2026
Key Terms
net interest margin, efficiency ratio, Common Equity Tier 1 capital, nonperforming loans, +2 more
6 terms
net interest margin financial
"As a result, the net interest margin contracted by 11 basis points to 3.08%."
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.
efficiency ratio financial
"Efficiency ratio (2) 57.64 57.97 59.25"
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
"Common equity tier 1 capital (“CET1”) 10.98 10.83 11.01"
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.
nonperforming loans financial
"Nonperforming loans (3) 17,264 18,297 8,916"
Nonperforming loans are loans on which borrowers have stopped making the scheduled interest or principal payments for an extended period (commonly 90 days or more) or are otherwise in serious danger of default. Think of them as IOUs that aren’t being repaid: they tie up a lender’s money, reduce future interest income, and force the lender to hold extra reserves or take losses. For investors, a rising share of nonperforming loans signals weakening credit quality, higher potential losses, and greater risk to a bank’s profitability and capital.
criticized loans financial
"Criticized loans (4)(5) by risk categories: Total criticized loans $33,428"
Criticized loans are bank loans that examiners or the bank itself have flagged as showing signs of weakness—such as higher risk of late payments, reduced collateral value, or borrower stress—but that are not yet officially defaulted. They matter to investors because a growing pile of such loans can signal deteriorating credit quality and higher future losses for a lender, much like small warning lights on a car dashboard that suggest a problem that, if ignored, could lead to a breakdown.
allowance for credit losses financial
"Allowance for credit losses on loans to gross loans 1.24 1.27 1.27"
Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.
Offering Details
earnings_snapshot
Offering
Offering Type
earnings_snapshot
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did OP Bancorp (OPBK) perform financially in Q2 2026?
OP Bancorp reported Q2 2026 net income of $7.978 million and diluted EPS of $0.53. This compares with $7.234 million and $0.48 in Q1 2026 and $6.333 million and $0.42 in Q2 2025, reflecting stronger profitability.
What were OPBK’s key revenue and margin metrics for Q2 2026?
Total revenue was $25.719 million, including net interest income of $20.068 million and noninterest income of $5.651 million. The net interest margin was 3.08%, down from 3.19% in Q1 2026, mainly due to a one-time Federal Reserve account accrual adjustment.
How strong were OPBK’s asset quality metrics in Q2 2026?
OP Bancorp reported nonperforming loans of 0.76% of gross loans and an allowance for credit losses of 1.24% of gross loans. Net charge-offs to average gross loans were 0.03%, indicating generally stable credit performance during the quarter.
What were OP Bancorp’s (OPBK) capital ratios and book value in Q2 2026?
At June 30, 2026, OP Bancorp’s Common Equity Tier 1 (CET1) capital ratio was 10.98% and the total capital ratio was 13.32%. Book value per share was $15.99, up from $15.62 at March 31, 2026 and $14.36 a year earlier.
How did OPBK’s loans and deposits change in Q2 2026?
At quarter-end, gross loans were $2.259 billion, up 1% from March 31, 2026 and 9% year-over-year. Total deposits were $2.368 billion, a 2% sequential increase and 5% higher than June 30, 2025, with time deposits driving most of the annual growth.
What were OP Bancorp’s profitability ratios in Q2 2026?
For Q2 2026, OP Bancorp reported ROAA of 1.18% and ROAE of 13.61%, compared with 1.08% and 12.56% in Q1 2026. The efficiency ratio improved to 57.64% from 57.97%, reflecting solid operating efficiency.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________
FORM 8-K
____________________________________
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 23, 2026
____________________________________
(Exact name of registrant as specified in its charter)
____________________________________
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
| (Address of principal executive offices) | (Zip Code) | |||||||
Registrant’s telephone number, including area code: (213 ) 892-9999
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (See General Instruction A.2 below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐
Item 2.02 Results of Operations and Financial Condition
On July 23, 2026, OP Bancorp, (the “Company”), the holding company for Open Bank, issued its press release announcing preliminary unaudited financial results for the second quarter ended June 30, 2026. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference in this Item 2.02.
The information in this Current Report set forth under this Item 2.02, including exhibit 99.1 hereto, is furnished hereunder and shall not be treated as “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (“Exchange Act”), nor shall it be deemed incorporated by reference into any registration statement or other filing pursuant to the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as expressly stated by specific reference in such filing.
Item 7.01 Regulation FD
On July 23, 2026, the registrant disclosed a presentation containing certain summary financial information that may be used in discussions with investors and analysts. That presentation is furnished herewith as Exhibit 99.3. The presentation shall not be treated as “filed” for purposes of Section 18 of the Exchange Act, nor shall it be deemed incorporated by reference into any registration statement or other filing pursuant to the Exchange Act or the Securities Act, except as expressly set forth in any such filing.
Item 8.01. Other Events
On July 23, 2026, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.14 per share on its common stock, payable on August 20, 2026, to shareholders of record as of August 6, 2026. The Company issued a press release describing the dividend on July 23, 2026, which is attached hereto as Exhibit 99.2 and incorporated herein by reference.
The information set forth in this Item 8.01, including the information in the accompanying press release, is furnished hereunder and shall not be treated as “filed” for purposes of Section 18 of the Exchange Act, nor shall it be deemed incorporated by reference into any registration statement or other filing pursuant to the Exchange Act or the Securities Act, except as expressly set forth in any such filing.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits.
| Exhibit Number | Exhibit Description | |||||||
| 99.1 | Press Release, dated July 23, 2026 - Second Quarter 2026 Results | |||||||
| 99.2 | Press Release, dated July 23, 2026 - Dividend Declaration | |||||||
| 99.3 | Earnings Presentation - Second Quarter 2026 Results | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| OP Bancorp | ||||||||
Date: July 23, 2026 | By: | /s/ Jaehyun Park | ||||||
| Jaehyun Park | ||||||||
| Executive Vice President and | ||||||||
| Chief Financial Officer | ||||||||
3
 | News Release | ||||
| OP Bancorp Reports Second Quarter 2026 Net Income of $8.0 Million, Diluted EPS of $0.53 | |||||
| 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 $0.42 | |||||
| Revenue growth; reversal of provision for credit losses; improved operating efficiency | |||||
Los Angeles, CA (July 23, 2026) — OP Bancorp (the “Company”) (NASDAQ: OPBK), parent company of Open Bank, today reported:
| ($ 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 increased 1%. | |||||||||||||||||||
| Average deposits | 2,315,821 | 2,300,455 | 2,223,575 | |||||||||||||||||||||||
| 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.
1
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 $0.53. Our results were driven by continued revenue growth, a reversal of provision for credit losses reflecting the strength of our credit portfolio, and ongoing improvements in operating efficiency. We also maintained solid balance sheet growth, with increases in both loans and deposits, while preserving strong asset quality and capital levels. As we enter the second half of 2026, we remain committed to driving sustainable growth while maintaining disciplined risk management and operating efficiency,” said Sang K. Oh, President and Chief Executive Officer.
2
INCOME STATEMENT HIGHLIGHTS
Net Interest Income and Net Interest Margin
| ($ 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.
3
| ($ 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.
4
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 $1.4 million, primarily due to the aforementioned payoff of the nonaccrual CRE loans, as well as lower qualitative reserves driven by slower home mortgage loan growth and a more favorable economic outlook compared to a year ago.
5
Noninterest Income
| ($ 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 $502 thousand, largely reflecting lower balances in existing business analysis accounts and closure of certain currency exchange-related accounts during the third quarter of 2025.
6
Noninterest Expense
| ($ 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%.
7
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 | ||||||||||||||
8
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) | ||||||||||||||||||||||
9
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.
10
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 | % | ||||||||||||||||||||||||||
11
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.
12
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.
Contact
Investor Relations
OP Bancorp
Jaehyun Park
EVP & CFO
213.593.4865
jaehyun.park@myopenbank.com
13
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 | % | ||||||||||||||||||||||
14
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.
15
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.
16
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 $17.1 million as of June 30, 2026, March 31, 2026 and June 30, 2025, respectively.
17
AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS
| For the Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2Q2026 | 1Q2026 | 2Q2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ($ 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 | |||||||||||||||||||||||||||||||||||||||||||||||
18
| 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.
19
Exhibit 99.2
OP Bancorp Declares Quarterly Cash Dividend of $0.14 per Share
LOS ANGELES, July 23, 2026 — OP Bancorp (the “Company”) (NASDAQ: OPBK), the holding company of Open Bank (the “Bank”), announced today that its 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.
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 with 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 Member FDIC, Equal Housing Lender.
Contact
Investor Relations
OP Bancorp
Jaehyun Park
EVP & CFO
213.593.4865
jaehyun.park@myopenbank.com
Second Quarter 2026 Earnings Presentation July 23, 2026
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. Cautionary Note Regarding Forward-Looking Statements 2
2Q-2026 Highlights vs 1Q-2026 3 (1) Annualized. (2) Excludes the guaranteed portion of SBA loans that are in liquidation. (3) Includes special mention, substandard, doubtful, and loss categories. Net Income $8.0M Earnings & Profitability Balance Sheet Growth Credit Quality Capital Adequacy • Net income of $8.0 million, compared to $7.2 million • Diluted earnings per share of $0.53, compared to $0.48 • ROAA(1) and ROAE(1) of 1.18% and 13.61%, compared to 1.08% and 12.56%, respectively • Net interest margin of 3.08%, compared to 3.19% • Efficiency ratio of 57.64%, compared to 57.97% • Total assets of $2.74 billion, a 2% increase compared to $2.70 billion • Gross loans of $2.26 billion, a 1% increase compared to $2.23 billion • Total deposits of $2.37 billion, a 2% increase compared to $2.33 billion • Net charge-offs (recoveries) (1) to average gross loans of 0.03%, compared to (0.01)% • Nonperforming loans (2) to gross loans of 0.76%, compared to 0.82%. • Criticized loans (2)(3) to gross loans of 1.48%, compared to 1.49% • Remained well-capitalized with a Common Equity Tier 1 (“CET1”) ratio of 10.98% • Book value per common share increased to $15.99, compared to $15.62 • Paid quarterly cash dividend of $0.14 per share. Diluted EPS $0.53 ROAA (1) 1.18% ROAE (1) 13.61% NIM 3.08% Efficiency 57.64%
Balance Sheet Trend 4 Gross Loans ($mm)Total Assets ($mm) Total Equity ($mm) & Book Value Per Share ($)Total Deposits ($mm)
Loan Trend 5 Loan Originations* ($mm)Loan Composition ($mm) Loan Yields (%) Commercial Real Estate Concentration (%) * Excludes changes in line utilization.
Loan by Interest Rate Type 6 Hybrid Loan Repricing Schedule ($mm)Composition by Interest Rate Type (%) Contractual Rates by Interest Rate Type (%) Loan Maturity Schedule ($mm)
* Based on Call Report definitions, which includes real estate loans and SBA real estate loans. Commercial Real Estate Portfolio 7 CRE* Portfolio by Property TypeCRE* Portfolio by Collateral Type June 30, 2026 ($1.40 billion)
* Based on Call Report definitions, which includes real estate loans and SBA real estate loans. ** Excludes SBA loans and USDA loans. Commercial Real Estate Portfolio 8 CRE Portfolio ** by Loan-to-Value Ratio (LTV)CRE Portfolio * by Location
Home Loan Portfolio 9 Home Loan Portfolio by LTVHome Loan Portfolio by Location Home Loan Portfolio by Occupancy Type June 30, 2026 ($569 million)
SBA Loans 10 SBA Portfolio by IndustrySBA Portfolio by Location June 30, 2026 ($279 million)
* Excludes $24.1 million in SBA C&I loans. SBA Loans 11 SBA Portfolio by Collateral TypeSBA Portfolio* by LTV
Deposit Trend 12 Noninterest Bearing Deposits ($mm)Deposit Composition ($mm) Cost of Deposits (%) CD Maturity Schedule ($mm)
Earnings & Profitability 13 Noninterest Income ($mm)Net Interest Income ($mm) & Net Interest Margin (%) * Interest Income & Interest Expense ($mm) Noninterest Income Components ($mm) * Annualized.
Earnings & Profitability 14 Efficiency Ratio (%)Noninterest Expense ($mm) Noninterest Expense Components ($mm) Efficiency Ratio Components (%) * * Ratios for Efficiency Ratio Components are percentages of average assets and are annualized.
Earnings & Profitability 15 Pre-Provision Net Revenue ($mm)*(Reversal of) Provision for Credit Losses ($mm) Net Income ($mm) & Diluted EPS ($) Return on Assets & Return on Equity (%) * Pre-provision net revenue is a non-GAAP financial measure. See reconciliation of GAAP to non-GAAP measures on Page 19.
Source: Target Fed Funds Rate per Federal Open Market Committee guidance. Net Interest Margin Trend 16
Credit Quality 17 Criticized Loans ($mm)Nonperforming Loans ($mm) Net Charge-Offs (Recoveries)** ($mm)Allowance for Credit Losses* ($mm) * Exclude the guaranteed portion of SBA loans that are in liquidation. ** Annualized
Liquidity & Capital 18 Total Available Liquidity* ($mm)Liquidity Assets ($mm) Tier 1 Leverage ($mm) Total Risk Based Capital ($mm) * Represent the sum of liquid assets and available borrowings.
Non-GAAP Reconciliation 19 Pre-Provision Net Revenue ($ in thousands) 2Q-26 1Q-26 4Q-25 3Q-25 2Q-25 Interest income 38,193$ 38,537$ 39,282$ 38,522$ 37,665$ Interest expense 18,125 18,014 18,419 18,176 17,944 Net interest income 20,068 20,523 20,863 20,346 19,721 Noninterest income 5,651 4,032 3,418 4,130 3,968 Noninterest expense 14,826 14,233 14,293 13,629 14,037 Pre-Provision Net Revenue (a) 10,893$ 10,322$ 9,988$ 10,847$ 9,652$ Reconciliation to Net Income: (Reversal of) provision for credit losses (b) (149) 412 463 1,175 1,206 Provision for income taxes (c) 3,064 2,676 2,487 2,969 2,113 Net income (a) - (b) - (c) 7,978$ 7,234$ 7,038$ 6,703$ 6,333$ For the Three Months Ended Pre-provision net revenue removes provision for credit losses and income tax expense. Management believes that this non-GAAP measure, when taken together with the corresponding GAAP financial measures (as applicable), provides meaningful supplemental information regarding our performance. This non-GAAP financial measure also facilitates a comparison of our performance to prior periods.