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OP Bancorp Reports Net Income for 2022 Third Quarter of $8.7 Million and Diluted Earnings Per Share of $0.55

2022 Third Quarter Highlights compared with 2021 Third Quarter:

  • Financial Results:
    • Net income of $8.7 million, up $400 thousand, or 5%
    • Diluted earnings per share of $0.55, up $0.01, or 2%
    • Net interest income of $20.3 million, up $3.8 million, or 23%
    • Provision for loan losses of $662 thousand, a $1.5 million increase, compared to reversal of provision for loan losses of $884 thousand
    • Noninterest income of $4.8 million, up $1.3 million, or 36%
    • Noninterest expense of $12.3 million, up $2.8 million, or 30%
    • Pre-provision net revenue (1) of $12.8 million, up $2.2 million, or 21%
    • Total assets of $2.03 billion, up $349.7 million, or 21%
    • Total loans (2) of $1.65 billion, up $328.4 million, or 25%; Average loans (2) of $1.61 billion, up $305.7 million, or 23%
    • Total deposits of $1.82 billion, up $320.4 million, or 21%; Average deposits of $1.75 billion, up $305.0 million, or 21%
    • Noninterest-bearing deposits of $794.6 million, up $81.5 million, or 11%; noninterest-bearing deposits to total deposits of 43.7%, compared to 47.6%
    • Net interest margin of 4.31%, up from 4.21%
    • Return on average equity of 19.91%, compared to 21.30%
    • Return on average assets of 1.77%, compared to 2.03%
    • Efficiency ratio of 49.03%, compared to 47.28%
  • Credit Quality:
    • Allowance for loan losses to gross loans of 1.14%, compared to 1.15%
    • Adjusted allowance to gross loans (1) of 1.18%, compared to 1.34%
    • Net loan recoveries to average gross loans of 0.00%
    • Nonperforming loans to gross loans of 0.14%, compared to 0.09%
    • Criticized loans (3) to gross loans of 0.22%, compared to 0.18%
  • Capital Levels:
    • Quarterly cash dividend of $0.12 per share, a 20% increase from $0.10 per share
    • Capital position remained well-capitalized with a Common Equity Tier 1 (“CET1”) ratio of 11.92%.
    • Book value per common share of $11.19, up 7%

___________________________________________________________

(1) See reconciliation of GAAP to non-GAAP financial measures.

(2) Includes loans held for sale.

(3) Includes special mention, substandard, doubtful, and loss categories.

OP Bancorp (the “Company”) (NASDAQ: OPBK), the holding company of Open Bank, today reported its financial results for the third quarter of 2022. Net income for the third quarter of 2022 was $8.7 million, or $0.55 per diluted common share, compared with $8.5 million, or $0.54 per diluted common share, for the second quarter of 2022, and $8.3 million, or $0.54 per diluted common share, for the third quarter of 2021.

Min Kim, President and Chief Executive Officer:

“We are pleased to report another strong quarter of balance sheet growth and earnings performance. Our total assets surpassed $2 billion for the first time as our average loans and deposits grew 23% and 21%, respectively, from a year ago. The growth was accompanied by increased net income and diluted earnings per share, expanded net interest margin, and maintenance of strong asset quality. Despite external headwinds related to supply chain bottlenecks, inflation, and market rate increases by the Federal Reserve, we remain optimistic about our future growth and performance and will continue to focus on executing our strategic goals while maintaining appropriate risk and control environment.”

SELECTED FINANCIAL HIGHLIGHTS

 

 

 

 

 

 

 

 

 

 

 

($ in thousands, except per share data)

 

As of and For the Three Months Ended

 

% Change 3Q22 vs.

 

3Q22

 

2Q22

 

3Q21

 

2Q22

 

3Q21

Selected Income Statement Data:

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

20,344

 

 

$

19,079

 

 

$

16,589

 

 

6.6

%

 

22.6

%

Provision for (reversal of) loan losses

 

 

662

 

 

 

996

 

 

 

(884

)

 

(33.5

)

 

n/m

 

Noninterest income

 

 

4,821

 

 

 

5,359

 

 

 

3,542

 

 

(10.0

)

 

36.1

 

Noninterest expense

 

 

12,338

 

 

 

11,503

 

 

 

9,519

 

 

7.3

 

 

29.6

 

Income tax expense

 

 

3,515

 

 

 

3,459

 

 

 

3,246

 

 

1.6

 

 

8.3

 

Net Income

 

$

8,650

 

 

$

8,480

 

 

$

8,250

 

 

2.0

%

 

4.8

%

Diluted earnings per share

 

$

0.55

 

 

$

0.54

 

 

$

0.54

 

 

1.9

%

 

1.9

%

Selected Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

Total loans (1)

 

$

1,654,660

 

 

$

1,551,973

 

 

$

1,326,287

 

 

6.6

%

 

24.8

%

Total deposits

 

$

1,816,811

 

 

$

1,741,623

 

 

$

1,496,406

 

 

4.3

%

 

21.4

%

Total assets

 

$

2,029,575

 

 

$

1,934,242

 

 

$

1,679,911

 

 

4.9

%

 

20.8

%

Average loans (1)

 

$

1,614,000

 

 

$

1,560,064

 

 

$

1,308,338

 

 

3.5

%

 

23.4

%

Average deposits

 

$

1,753,726

 

 

$

1,702,860

 

 

$

1,448,771

 

 

3.0

%

 

21.0

%

Credit Quality:

 

 

 

 

 

 

 

 

 

 

Nonperforming loans

 

$

2,251

 

 

$

2,177

 

 

$

1,052

 

 

3.4

%

 

114.0

%

Net (recoveries) charge-offs to average gross loans (2)

 

 

(0.00

)%

 

 

(0.01

)%

 

 

(0.00

)%

 

0.01

%

 

0.00

%

Allowance for loan losses to gross loans

 

 

1.14

%

 

 

1.19

%

 

 

1.15

%

 

(0.05

)%

 

(0.01

)%

Financial Ratios:

 

 

 

 

 

 

 

 

 

 

Return on average assets (2)

 

 

1.77

%

 

 

1.79

%

 

 

2.03

%

 

(0.02

) %

 

(0.26

)%

Return on average equity (2)

 

 

19.91

%

 

 

20.29

%

 

 

21.30

%

 

(0.38

) %

 

(1.39

)%

Net interest margin (2)

 

 

4.31

%

 

 

4.21

%

 

 

4.21

%

 

0.10

%

 

0.10

%

Common equity tier 1 capital ratio

 

 

11.92

%

 

 

12.29

%

 

 

12.63

%

 

(0.37

) %

 

(0.71

)%

Leverage ratio

 

 

9.52

%

 

 

9.48

%

 

 

9.75

%

 

0.04

%

 

(0.23

)%

Efficiency ratio (3)

 

 

49.03

%

 

 

47.07

%

 

 

47.28

%

 

1.96

%

 

1.75

%

Book value per common share

 

$

11.19

 

 

$

11.16

 

 

$

10.48

 

 

0.3

%

 

6.8

%

 

 

 

 

 

 

 

 

 

 

 

(1)

Includes loans held for sale.

(2)

Annualized.

(3)

Represents noninterest expense divided by the sum of net interest income and noninterest income.

INCOME STATEMENT HIGHLIGHTS

Net Interest Income and Net Interest Margin

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

For the Three Months Ended

 

% Change 3Q22 vs.

 

3Q22

 

2Q22

 

3Q21

 

2Q22

 

3Q21

Interest Income

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

23,234

 

$

20,148

 

$

17,355

 

15.3

%

 

33.9

%

Interest expense

 

 

2,890

 

 

1,069

 

 

766

 

170.3

 

 

277.3

 

Net interest income

 

$

20,344

 

$

19,079

 

$

16,589

 

6.6

%

 

22.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

For the Three Months Ended

 

3Q22

 

2Q22

 

3Q21

 

Average Balance

 

Interest

and Fees

 

Yield/Rate (1)

 

Average Balance

 

Interest

and Fees

 

Yield/Rate (1)

 

Average Balance

 

Interest

and Fees

 

Yield/Rate (1)

Interest-earning Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

1,614,000

 

$

21,780

 

5.36

%

 

$

1,560,064

 

$

19,108

 

4.91

%

 

$

1,308,338

 

$

16,922

 

5.13

%

Total interest-earning assets

 

$

1,874,516

 

$

23,234

 

4.92

%

 

$

1,817,157

 

$

20,148

 

4.44

%

 

$

1,566,050

 

$

17,355

 

4.40

%

Interest-bearing Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

947,437

 

$

2,889

 

1.21

%

 

$

859,072

 

$

1,069

 

0.50

%

 

$

752,010

 

$

766

 

0.40

%

Total interest-bearing liabilities

 

$

947,567

 

$

2,890

 

1.21

%

 

$

859,072

 

$

1,069

 

0.50

%

 

$

752,010

 

$

766

 

0.40

%

Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest Income/interest rate spreads

 

 

 

$

20,344

 

3.71

%

 

 

 

$

19,079

 

3.94

%

 

 

 

$

16,589

 

4.00

%

Net interest margin

 

 

 

 

 

4.31

%

 

 

 

 

 

4.21

%

 

 

 

 

 

4.21

%

Total deposits / cost of deposits

 

$

1,753,726

 

$

2,889

 

0.65

%

 

$

1,702,860

 

$

1,069

 

0.25

%

 

$

1,448,771

 

$

766

 

0.21

%

Total funding liabilities / cost of funds

 

$

1,753,856

 

$

2,890

 

0.65

%

 

$

1,702,860

 

$

1,069

 

0.25

%

 

$

1,448,771

 

$

766

 

0.21

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Annualized.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

For the Three Months Ended

 

Yield Change 3Q22 vs.

 

3Q22

 

2Q22

 

3Q21

 

 

Interest

& Fees

 

Yield (1)

 

Interest

& Fees

 

Yield (1)

 

Interest

& Fees

 

Yield (1)

 

2Q22

 

3Q21

Loan Yield Component

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contractual interest rate

 

$

20,419

 

 

5.02

%

 

$

17,425

 

 

4.48

%

 

$

14,251

 

 

4.32

%

 

0.54

%

 

0.70

%

SBA discount accretion

 

 

1,336

 

 

0.33

 

 

 

1,151

 

 

0.30

 

 

 

1,584

 

 

0.48

 

 

0.03

 

 

(0.15

)

Amortization of net deferred fees

 

 

122

 

 

0.03

 

 

 

493

 

 

0.13

 

 

 

1,249

 

 

0.38

 

 

(0.10

)

 

(0.35

)

Amortization of premium

 

 

(250

)

 

(0.06

)

 

 

(197

)

 

(0.05

)

 

 

(188

)

 

(0.06

)

 

(0.01

)

 

 

Net interest recognized on nonaccrual loans

 

 

 

 

0.00

 

 

 

5

 

 

0.00

 

 

 

(15

)

 

 

 

0.00

 

 

0.00

 

Prepayment penalties (2) and other fees

 

 

153

 

 

0.04

 

 

 

231

 

 

0.05

 

 

 

41

 

 

0.01

 

 

(0.01

)

 

0.03

 

Yield on loans

 

$

21,780

 

 

5.36

%

 

$

19,108

 

 

4.91

%

 

$

16,922

 

 

5.13

%

 

0.45

%

 

0.23

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of net deferred fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PPP loan forgiveness (3)

 

$

146

 

 

0.04

%

 

$

351

 

 

0.09

%

 

$

1,006

 

 

0.31

%

 

(0.05

)%

 

(0.27

)%

Other

 

 

(24

)

 

-0.01

 

 

 

142

 

 

0.04

 

 

 

243

 

 

0.07

 

 

(0.05

)

 

(0.08

)

Total amortization of net deferred fees

 

$

122

 

 

0.03

%

 

$

493

 

 

0.13

%

 

$

1,249

 

 

0.38

%

 

(0.10

)%

 

(0.35

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Annualized.

(2)

Prepayment penalty income of $79 thousand, $118 thousand and $0 for the three months ended September 30, 2022, June 30, 2022 and September 30, 2021, respectively, was from commercial real estate and C&I loans.

(3)

As of September 30, 2022, there were unamortized net deferred fees and unaccredited discounts of $28 thousand to be recognized over the estimated life of the loans as a yield adjustment on the loans.

Impact of Hana Loan Purchase on Average Loan Yield and Net Interest Margin

During the second quarter of 2021, the Company purchased an SBA portfolio of 638 loans with an ending balance of $100.0 million, excluding loan discount of $8.9 million from Hana Small Business Lending, Inc. (“Hana”). The following table presents impacts of the Hana loan purchase on average loan yield and net interest margin:

 

 

 

 

 

 

 

($ in thousands)

 

For the Three Months Ended

 

3Q22

 

2Q22

 

3Q21

Hana Loan Purchase:

 

 

 

 

 

 

Contractual interest rate

 

$

1,114

 

 

$

956

 

 

$

1,094

 

Purchased loan discount accretion

 

 

594

 

 

 

592

 

 

 

948

 

Other fees

 

 

9

 

 

 

24

 

 

 

15

 

Total interest income

 

$

1,717

 

 

$

1,572

 

 

$

2,057

 

 

 

 

 

 

 

 

Effect on average loan yield (1)

 

 

0.21

%

 

 

0.19

%

 

 

0.30

%

Effect on net interest margin (1)

 

 

0.22

%

 

 

0.20

%

 

 

0.30

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

For the Three Months Ended

 

3Q22

 

2Q22

 

3Q21

 

Average

Balance

 

Interest

and Fees

 

Yield/

Rate

 

Average

Balance

 

Interest

and Fees

 

Yield/

Rate

 

Average

Balance

 

Interest

and Fees

 

Yield/

Rate

Average loan yield (1)

 

$

1,614,000

 

$

21,780

 

5.36

%

 

$

1,560,064

 

$

19,108

 

4.91

%

 

$

1,308,338

 

$

16,922

 

5.13

%

Adjusted average loan yield excluding purchased Hana loans (1)(2)

 

$

1,549,313

 

$

20,063

 

5.15

%

 

$

1,490,884

 

$

17,536

 

4.72

%

 

$

1,222,628

 

$

14,865

 

4.83

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin (1)

 

$

1,874,516

 

$

20,344

 

4.31

%

 

$

1,817,157

 

$

19,079

 

4.21

%

 

$

1,566,050

 

$

16,589

 

4.21

%

Adjusted interest margin excluding purchased Hana loans (1)(2)

 

$

1,809,829

 

$

18,627

 

4.09

%

 

$

1,747,977

 

$

17,507

 

4.01

%

 

$

1,480,340

 

$

14,532

 

3.91

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Annualized.

(2)

See reconciliation of GAAP to non-GAAP financial measures.

Third Quarter 2022 vs. Second Quarter 2022

Net interest income increased $1.3 million, or 6.6%, primarily due to higher interest income on loans. Net interest margin was 4.31%, an increase of 10 basis points from 4.21%.

  • A $2.7 million increase in interest income on loans was primarily due to interest income increases of $1.4 million on real estate loans and $983 thousand on home mortgage loans driven by average balance increases of $58.5 million on real estate loans and $81.5 million on home mortgage loans.
  • The 10 basis point increase in net interest margin was primarily due to a 48 basis point increase in average yield on interest-earning assets.
  • Average loan yield was 5.36%, a 45 basis point increase from 4.91%, primarily due to a 54 basis point increase in contractual loan yield as a result of market rate increases by the Federal Reserve.
  • Average cost of interest-bearing deposits was 1.21%, a 71 basis point increase from 0.50%. Average cost of deposits was 0.65%, a 40 basis point increase from 0.25%, primarily due to the Federal Reserve’s rate increases.

Third Quarter 2022 vs. Third Quarter 2021

Net interest income increased $3.8 million, or 22.6%, primarily due to higher interest income on loans. Net interest margin was 4.31%, an increase of 10 basis points from 4.21%.

  • A $4.9 million increase in interest income on loans was primarily due to higher average loan balance from loan growth in home loans and real estate loans.
  • The improvement of 10 basis points in net interest margin was primarily due to a 52 basis point increase in average yield on interest-earning assets.
  • Average loan yield was 5.36%, a 23 basis point increase from 5.13%, primarily due to a 70 basis point increase in contractual loan yield as a result of market rate increases by the Federal Reserve, partially offset by a 15 basis point decrease in SBA discount accretion income as a result of lower SBA loan payoffs and a 35 basis point decrease in amortization of net deferred fees as a result of lower net deferred fees on SBA PPP loans.
  • Average yield on interesting-bearing deposits in other banks was 2.21%, a 208 basis point increase from 0.13%, primarily due to the Federal Reserve’s rate increases. Average yield on available-for-sale debt securities was 2.04%, a 105 basis point increase from 0.99%, primarily due to higher yields on securities purchased in 2022 as a result of the Federal Reserve’s rate increases.
  • Average cost of interest-bearing deposits was 1.21%, an 81 basis point increase from 0.40% primarily due to the Federal Reserve’s rate increases. Average cost of deposits was 0.65%, a 44 basis point increase from 0.21%, primarily due to the Federal Reserve’s rate increases.

Provision for loan losses

Third Quarter 2022 vs. Second Quarter 2022

The Company recorded $662 thousand provision for loan losses, a decrease of $334 thousand, compared with a $996 thousand provision for loan losses. The $662 thousand provision for loan losses was primarily due to an increase of $2.3 million in quantitative reserves from loan growth in real estate and home mortgage loans, partially offset by a decrease of $1.6 million in qualitative assessments of our loan portfolio.

Third Quarter 2022 vs. Third Quarter 2021

The Company recorded $662 thousand provision for loan losses, an increase of $1.5 million, compared with $884 thousand reversal of provision for loan losses.

Noninterest Income

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

For the Three Months Ended

 

% Change 3Q22 vs.

 

3Q22

 

2Q22

 

3Q21

 

2Q22

 

3Q21

Noninterest income

 

 

 

 

 

 

 

 

 

 

Service charges on deposits

 

$

454

 

$

427

 

$

409

 

6.3

%

 

11.0

%

Loan servicing fees, net of amortization

 

 

610

 

 

654

 

 

599

 

(6.7

)

 

1.8

 

Gain on sale of loans

 

 

3,490

 

 

3,873

 

 

2,188

 

(9.9

)

 

59.5

 

Other income

 

 

267

 

 

405

 

 

346

 

(34.1

)

 

(22.8

)

Total noninterest income

 

$

4,821

 

$

5,359

 

$

3,542

 

(10.0

)%

 

36.1

%

 

 

 

 

 

 

 

 

 

 

 

Third Quarter 2022 vs. Second Quarter 2022

Noninterest income decreased $538 thousand, or 10.0%, primarily due to lower gains on sale of loans and other income.

  • Gains on sale of loans were $3.5 million, down $383 thousand from the second quarter of 2022, primarily due to lower average premium on loan sales. The Company sold $59.3 million in SBA loans at an average premium of 6.67%, compared to the sale of $58.6 million at an average premium of 7.02%.
  • Other income were $267 thousand, down $138 thousand from second quarter of 2022, primarily due to a decreases in credit related fees and an increase in unrealized loss on CRA qualified mutual fund.

Third Quarter 2022 vs. Third Quarter 2021

Noninterest income increased $1.3 million, or 36.1%, primarily due to higher gains on sale of loans.

  • Gains on sales of loans were $3.5 million, up $1.3 million from the third quarter of 2021. The increase was primarily due to higher sales volume partially offset by lower average premium on loan sales. The Company sold $59.3 million in SBA loans at an average premium of 6.67%, compared to the sale of $10.6 million at an average premium of 11.48%.

Noninterest Expense

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

For the Three Months Ended

 

% Change 3Q22 vs.

 

3Q22

 

2Q22

 

3Q21

 

2Q22

 

3Q21

Noninterest expense

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

$

7,343

 

$

7,109

 

$

5,724

 

3.3

%

 

28.3

%

Occupancy and equipment

 

 

1,537

 

 

1,489

 

 

1,326

 

3.2

 

 

15.9

 

Data processing and communication

 

 

586

 

 

492

 

 

448

 

19.1

 

 

30.8

 

Professional fees

 

 

602

 

 

364

 

 

308

 

65.4

 

 

95.5

 

FDIC insurance and regulatory assessments

 

 

238

 

 

192

 

 

146

 

24.0

 

 

63.0

 

Promotion and advertising

 

 

177

 

 

165

 

 

175

 

7.3

 

 

1.1

 

Directors’ fees

 

 

170

 

 

190

 

 

183

 

(10.5

)

 

(7.1

)

Foundation donation and other contributions

 

 

875

 

 

852

 

 

842

 

2.7

 

 

3.9

 

Other expenses

 

 

810

 

 

650

 

 

367

 

24.6

 

 

120.7

 

Total noninterest expense

 

$

12,338

 

$

11,503

 

$

9,519

 

7.3

%

 

29.6

%

 

 

 

 

 

 

 

 

 

 

 

Third Quarter 2022 vs. Second Quarter 2022

Noninterest expense increased $835 thousand, or 7.3%, primarily due to higher salaries and employee benefits, professional fees and other expenses.

  • Salaries and employee benefits were $7.3 million, up $234 thousand from the second quarter of 2022. The increase was primarily due to an increase in employee incentive accruals and salaries as a result of 13 additional employees.
  • Professional fees were $602 thousand, up $238 thousand from the second of 2022, primarily due to increases in other consulting fees.
  • Other expenses were $810 thousand, up $160 thousand from the second of 2022, primarily due to an increase in business development expense.

Third Quarter 2022 vs. Third Quarter 2021

Noninterest expense increased $2.8 million, or 29.6%, primarily due to higher salaries and employee benefits and other expenses.

  • Salaries and employee benefits were $7.3 million, up $1.6 million from the third quarter of 2021. The increase was primarily due to an increase in employee incentive accruals and salaries as a result of 30 additional employees to support continued growth of the Company.
  • Occupancy and equipment expenses were $1.5 million, up $211 thousand from the third quarter of 2021, primarily due to a new branch opened in the first quarter of 2022.
  • Professional fees were $602 thousand, up $294 thousand from the third of 2021, primarily due to increases in other consulting fees.
  • Other expenses were $810 thousand, up $443 thousand from the third quarter of 2021, primarily due to an increase in business development expense.

Income Tax Expense

Third Quarter 2022 vs. Second Quarter 2022

Income tax expense was $3.5 million, and the effective tax rate was 28.9%, compared to income tax expense of $3.5 million and the effective rate of 29.0% for the second quarter of 2022.

Third Quarter 2022 vs. Third Quarter 2021

Income tax expense was $3.5 million and the effective tax rate was 28.9%, compared to income tax expense of $3.2 million and the effective rate of 28.2% for the third quarter of 2021.

Balance Sheet Highlights

Loans

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

As of

 

% Change 3Q22 vs.

 

3Q22

 

2Q22

 

3Q21

 

2Q22

 

3Q21

Real estate loans

 

$

830,125

 

$

776,785

 

$

688,430

 

6.9

%

 

20.6

%

SBA loans (1)

 

 

232,569

 

 

247,413

 

 

303,625

 

(6.0

)

 

(23.4

)

C&I loans

 

 

133,855

 

 

128,620

 

 

123,422

 

4.1

 

 

8.5

 

Home mortgage loans

 

 

419,469

 

 

331,362

 

 

115,255

 

26.6

 

 

263.9

 

Consumer & other loans

 

 

2,000

 

 

538

 

 

1,089

 

271.7

 

 

83.7

 

Gross loans

 

$

1,618,018

 

$

1,484,718

 

$

1,231,821

 

9.0

%

 

31.4

%

 

 

 

 

 

 

 

 

 

 

 

(1)

Includes PPP loans of $1.1 million, $8.1 million and $69.3 million as of September 30, 2022, June 30, 2022 and September 30, 2021, respectively.

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

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

For the Three Months Ended

 

% Change 3Q22 vs.

 

3Q22

 

2Q22

 

3Q21

 

2Q22

 

3Q21

Real estate loans

 

$

43,929

 

$

61,924

 

$

27,671

 

(29.1

)%

 

58.8

%

SBA loans (1)

 

 

43,984

 

 

55,085

 

 

57,541

 

(20.2

)

 

(23.6

)

C&I loans

 

 

9,720

 

 

2,718

 

 

35,279

 

257.6

 

 

(72.4

)

Home mortgage loans

 

 

68,842

 

 

30,345

 

 

13,437

 

126.9

 

 

412.3

 

Consumer & other loans

 

 

2,500

 

 

 

 

 

 

 

 

Gross loans

 

$

168,975

 

$

150,072

 

$

133,928

 

12.6

%

 

26.2

%

 

 

 

 

 

 

 

 

 

 

 

(1)

There were no new PPP originations for the periods indicated.

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

 

 

 

 

 

 

 

($ in thousands)

 

For the Three Months Ended

 

3Q22

 

2Q22

 

3Q21

Gross loans, beginning

 

$

1,484,718

 

 

$

1,428,410

 

 

$

1,245,866

 

New originations

 

 

168,975

 

 

 

150,072

 

 

 

152,913

 

Net line advances

 

 

18,642

 

 

 

(46,773

)

 

 

(24,018

)

Purchases

 

 

37,146

 

 

 

56,455

 

 

 

 

Sales

 

 

(60,307

)

 

 

(57,954

)

 

 

(22,506

)

Paydowns

 

 

(19,084

)

 

 

(16,011

)

 

 

(14,675

)

Payoffs

 

 

(37,817

)

 

 

(33,098

)

 

 

(46,409

)

PPP Payoffs

 

 

(7,206

)

 

 

(14,347

)

 

 

(36,108

)

Other

 

 

32,951

 

 

 

17,964

 

 

 

(23,242

)

Total

 

 

133,300

 

 

 

56,308

 

 

 

(14,045

)

Gross loans, ending

 

$

1,618,018

 

 

$

1,484,718

 

 

$

1,231,821

 

 

 

 

 

 

 

 

As of September 30, 2022 vs. June 30, 2022

Gross loans were $1.62 billion at September 30, 2022, up $133.3 million from June 30, 2022, primarily due to new loan originations and home mortgage loan purchases.

Home mortgage loans of $37.1 million were purchased from third party mortgage originators, compared to $56.5 million in the second quarter of 2022. New loan originations and loan payoffs were $169.0 million and $45.0 million for the third quarter of 2022, compared with $150.1 million and $47.4 million for the second quarter of 2022, respectively. Of the PPP loans, $7.2 million in principal amount has been forgiven under the program, compared to a $14.3 million of PPP loans forgiven in the second quarter of 2022.

As of September 30, 2022 vs. September 30, 2021

Gross loans were $1.62 billion at September 30, 2022, up $386.2 million from September 30, 2021, primarily due to new loan originations of $609.2 million and home mortgage loan purchases of $224.1 million, partially offset by loan sales of $211.0 million and loan payoffs of $233.6 million.

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

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

As of

 

3Q22

 

2Q22

 

3Q21

 

%

 

Rate

 

%

 

Rate

 

%

 

Rate

Fixed rate

 

35.2

%

 

4.39

%

 

34.9

%

 

4.19

%

 

32.2

%

 

4.05

%

Hybrid rate

 

34.1

 

 

4.59

 

 

28.2

 

 

4.47

 

 

22.4

 

 

4.55

 

Variable rate

 

30.7

 

 

6.97

 

 

36.9

 

 

5.77

 

 

45.4

 

 

5.08

 

Gross loans

 

100.0

%

 

5.25

%

 

100.0

%

 

4.85

%

 

100.0

%

 

4.63

%

 

 

 

 

 

 

 

 

 

 

 

 

 

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, 2022

 

Within One Year

 

One Year Through Five Years

 

After Five Years

 

Total

 

Amount

 

Rate

 

Amount

 

Rate

 

Amount

 

Rate

 

Amount

 

Rate

Fixed rate

 

$

33,014

 

4.32

%

 

$

325,509

 

4.47

%

 

$

211,033

 

4.29

%

 

$

569,556

 

4.39

%

Hybrid rate

 

 

28,577

 

4.35

 

 

 

52,341

 

5.12

 

 

 

470,087

 

4.54

 

 

 

551,005

 

4.59

 

Variable rate

 

 

76,193

 

6.83

 

 

 

132,162

 

6.84

 

 

 

289,102

 

7.08

 

 

 

497,457

 

6.97

 

Gross loans

 

$

137,784

 

5.71

%

 

$

510,012

 

5.15

%

 

$

970,222

 

5.24

%

 

$

1,618,018

 

5.25

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

As of

 

% Change 3Q22 vs.

 

3Q22

 

2Q22

 

3Q21

 

 

Amount

 

%

 

Amount

 

%

 

Amount

 

%

 

2Q22

 

3Q21

Noninterest-bearing deposits

 

$

794,631

 

43.7

%

 

$

820,311

 

47.1

%

 

$

713,141

 

47.6

%

 

(3.1

)%

 

11.4

%

Money market deposits and others

 

 

524,911

 

28.9

%

 

 

519,389

 

29.8

 

 

 

351,186

 

23.5

%

 

1.1

 

 

49.5

 

Time deposits

 

 

497,269

 

27.4

%

 

 

401,923

 

23.1

 

 

 

432,079

 

28.9

%

 

23.7

 

 

15.1

 

Total deposits

 

$

1,816,811

 

100.0

%

 

$

1,741,623

 

100.0

%

 

$

1,496,406

 

100.0

%

 

4.3

%

 

21.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of September 30, 2022 vs. June 30, 2022

Total deposits were $1.82 billion as of September 30, 2022, up $75.2 million from June 30, 2022, primarily driven by growth in money market deposits and time deposits, partially offset by a decrease in noninterest-bearing deposits. Money market deposits and time deposits grew $5.5 million and $95.3 million, respectively, due to management’s actions to support loan growth during the third quarter of 2022 including upward adjustments of interest rates on customer deposits and increases in wholesale deposits. Noninterest-bearing deposits decreased $25.7 million, primarily due to decreases from Special Deposit Center as a result of lower transaction volumes, specifically escrow and 1031 exchange accounts.

As of September 30, 2022 vs. September 30, 2021

Total deposits were $1.82 billion as of September 30, 2022, up $320.4 million from September 30, 2021, primarily driven by growth in money market and noninterest-bearing deposits. Money market deposits were $524.9 million, up $173.7 million from $351.2 million at September 30, 2021. Noninterest-bearing deposits were $794.6 million, up $81.5 million from $713.1 million as of September 30, 2021. The growth in noninterest-bearing deposits was primarily due to addition of new customers from our Specialty Deposit Center.

The following table sets forth the maturity of time deposits as of September 30, 2022:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of September 30, 2022

($ in thousands)

 

Within Three

Months

 

Three to

Six Months

 

Six to Nine Months

 

Nine to Twelve

Months

 

After

Twelve Months

 

Total

Time deposits (more than $250,000)

 

$

76,174

 

 

$

15,362

 

 

$

33,682

 

 

$

149,265

 

 

$

3,302

 

 

$

277,785

 

Time deposits ($250,000 or less)

 

 

51,818

 

 

 

39,287

 

 

 

37,942

 

 

 

84,080

 

 

 

6,357

 

 

 

219,484

 

Total time deposits

 

$

127,992

 

 

$

54,649

 

 

$

71,624

 

 

$

233,345

 

 

$

9,659

 

 

$

497,269

 

Weighted average rate

 

 

1.65

%

 

 

1.29

%

 

 

1.07

%

 

 

1.95

%

 

 

1.68

%

 

 

1.63

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital and Cash Dividend

 

 

 

 

 

 

 

 

 

 

 

Basel III

 

OP Bancorp (1)

 

Open Bank

 

Minimum Well

Capitalized

Ratio

Minimum

Capital Ratio+

Conservation

Buffer (2)

Risk-Based Capital Ratios:

 

 

 

 

 

 

 

 

Total risk-based capital ratio

 

13.10 %

 

12.97 %

 

10.00 %

 

10.50 %

Tier 1 risk-based capital ratio

 

11.92 %

 

11.79 %

 

8.00 %

 

8.50 %

Common equity tier 1 ratio

 

11.92 %

 

11.79 %

 

6.50 %

 

7.00 %

Leverage ratio

 

9.52 %

 

9.41 %

 

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 bonus to executive officers.

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

Basel III

 

% Change 3Q22 vs.

 

3Q22

 

2Q22

 

3Q21

 

2Q22

 

3Q21

Risk-Based Capital Ratios:

 

 

 

 

 

 

 

 

 

 

Total risk-based capital ratio

 

 

13.10

%

 

 

13.51

%

 

 

13.81

%

 

(0.41

)%

 

(0.71

)%

Tier 1 risk-based capital ratio

 

 

11.92

%

 

 

12.29

%

 

 

12.63

%

 

(0.37

)%

 

(0.71

)%

Common equity tier 1 ratio

 

 

11.92

%

 

 

12.29

%

 

 

12.63

%

 

(0.37

)%

 

(0.71

)%

Leverage ratio

 

 

9.52

%

 

 

9.48

%

 

 

9.75

%

 

0.04

%

 

(0.23

)%

Risk-weighted Assets

 

$

1,571,593

 

 

$

1,465,707

 

 

$

1,251,867

 

 

7.22

%

 

25.54

%

 

 

 

 

 

 

 

 

 

 

 

Capital ratios remained strong during the quarter. Our CET1 and total risk-based capital ratios were 11.92% and 13.10% as of September 30, 2022, down 71 basis points and 71 basis points from a year ago, respectively. The decreases in capital ratios were primarily due to year-over-year asset growth.

The Company’s Board of Directors has declared a quarterly cash dividend of $0.12 per share of its common stock. The cash dividend is payable on or about November 24, 2022 to all shareholders of record as of the close of business on November 10, 2022.

The Company did not repurchase any shares during the third quarter of 2022. Since the announcement of the initial stock repurchase program in January 2019, the Company has repurchased a total of 1.57 million shares of its common stock at an average repurchase price of $8.58 per share through September 30, 2022.

Asset Quality

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

As of and For the Three Months Ended

 

% Change 3Q22 vs.

 

3Q22

 

2Q22

 

3Q21

 

2Q22

 

3Q21

Nonperforming loans (1)

 

$

2,251

 

 

$

2,177

 

 

$

1,052

 

 

3.4

%

 

114.0

%

OREO

 

 

 

 

 

 

 

 

 

 

 

 

 

Total nonperforming assets

 

$

2,251

 

 

$

2,177

 

 

$

1,052

 

 

3.4

%

 

114.0

%

 

 

 

 

 

 

 

 

 

 

 

Nonperforming loans to gross loans

 

 

0.14

%

 

 

0.15

%

 

 

0.09

%

 

(0.01

) %

 

0.05

%

Nonperforming assets to total assets

 

 

0.11

%

 

 

0.11

%

 

 

0.06

%

 

0.00

%

 

0.05

%

 

 

 

 

 

 

 

 

 

 

 

Criticized (2) Loan:

 

 

 

 

 

 

 

 

 

 

Special mention loans

 

$

 

 

$

 

 

$

 

 

%

 

%

Classified loans (3)

 

 

3,542

 

 

 

3,020

 

 

 

2,201

 

 

17.3

 

 

60.9

 

Total criticized loans

 

$

3,542

 

 

$

3,020

 

 

$

2,201

 

 

17.3

%

 

60.9

%

 

 

 

 

 

 

 

 

 

 

 

Criticized (2) loans to gross loans

 

 

0.22

%

 

 

0.27

%

 

 

0.18

%

 

(0.05

)%

 

0.04

%

Classified loans (3) to gross loans

 

 

0.22

%

 

 

0.27

%

 

 

0.18

%

 

(0.05

)%

 

0.04

%

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses, beginning

 

$

17,702

 

 

$

16,672

 

 

$

14,687

 

 

6.2

%

 

20.5

%

Provision for (reversal of) loan losses (4)

 

 

662

 

 

 

996

 

 

 

(557

)

 

(33.5

)

 

n/m

 

Gross charge-offs

 

 

 

 

 

(18

)

 

 

 

 

(100.0

)

 

 

Gross recoveries

 

 

5

 

 

 

52

 

 

 

4

 

 

(90.4

)

 

25.0

 

Allowance for loan losses, ending (5)

 

$

18,369

 

 

$

17,702

 

 

$

14,134

 

 

3.8

%

 

30.0

%

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses ratios:

 

 

 

 

 

 

 

 

 

 

As a % of gross loans

 

 

1.14

%

 

 

1.19

%

 

 

1.15

%

 

(0.05

)%

 

(0.01

)%

As an adjusted % of gross loans (6)

 

 

1.18

%

 

 

1.25

%

 

 

1.34

%

 

(0.07

)%

 

(0.16

)%

As a % of nonperforming loans

 

 

816

%

 

 

813

%

 

 

1,344

%

 

3

%

 

(528

)%

As a % of nonperforming assets

 

 

816

%

 

 

813

%

 

 

1,344

%

 

3

%

 

(528

)%

Net (recoveries) charge-offs to average gross loans

 

 

(0.00

)%

 

 

(0.01

)%

 

 

0.00

%

 

0.01

%

 

0.00

%

 

 

 

 

 

 

 

 

 

 

 

(1)

Includes the guaranteed portion of SBA loans totaling $442 thousand and $346 thousand as of September 30, 2022 and June 30, 2022, respectively.

(2)

Includes special mention, substandard, doubtful and loss categories.

(3)

Includes substandard, doubtful and loss categories.

(4)

Excludes reversal of uncollectible accrued interest receivable of $327 thousand for the three months ended September 30, 2021.

(5)

Excludes allowance for uncollectible accrued interest receivable of $465 thousand as of September 30, 2021.

(6)

See the Reconciliation of GAAP to NON-GAAP Financial Measures.

Overall, the Company continued to maintain solid asset quality with low levels of nonperforming loans and net charge-offs. Nonperforming assets and criticized loans remained below our historical norms, a reflection of our conservative credit culture and expertise in the industries we serve. Our allowance remained strong with an adjusted allowance to gross loans ratio of 1.18%.

  • Allowance for loan losses increased $4.2 million to $18.4 million from a year ago. Excluding the impacts of the purchased Hana loans, PPP loans, adjusted allowance to gross loans ratio was 1.18% as of September 30, 2022.
  • Criticized loans increased by $1.3 million or 60.9% from a year ago, and the criticized loans to gross loans ratio increased by 4 basis points, primarily due to home mortgage loans that were categorized as Substandard in the fourth quarter of 2021. Criticized loans are generally consistent with the Special Mention, Substandard, Doubtful and Loss categories defined by regulatory authorities.
  • Nonperforming assets increased $1.2 million to $2.3 million, or 0.11% of total assets from a year ago. The increase in nonperforming assets was primarily due to home mortgage loans that were placed on nonaccrual in the fourth quarter of 2021. As of September 30, 2022, $442 thousand of nonaccrual loans was the guaranteed portion of SBA loans that are in liquidation. The Company did not have OREO as of September 30, 2022 or 2021.
  • Net recoveries were $5 thousand or 0.00% of average loans in the third quarter of 2022, compared to net recoveries of $4 thousand in the third quarter of 2021.

COVID-19 Pandemic Update

As of September 30, 2022, no loan was under COVID-19 loan payment modification.

Since the PPP’s inception through September 30, 2022, we have funded $154.5 million, and $153.4 million of principal forgiveness has been provided on qualifying PPP loans.

Reconciliation of GAAP to Non-GAAP Financial Measures

In addition to GAAP measures, management uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance.

Pre-provision net revenue removes provision for loan 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.

 

 

 

 

 

 

 

($ in thousands)

 

For the Three Months Ended

 

3Q22

 

2Q22

 

3Q21

Interest income

 

$

23,234

 

$

20,148

 

$

17,355

 

Interest expense

 

 

2,890

 

 

1,069

 

 

766

 

Net interest income

 

 

20,344

 

 

19,079

 

 

16,589

 

Noninterest income

 

 

4,821

 

 

5,359

 

 

3,542

 

Noninterest expense

 

 

12,338

 

 

11,503

 

 

9,519

 

Pre-provision net revenue

(a)

$

12,827

 

$

12,935

 

$

10,612

 

Reconciliation to net income:

 

 

 

 

 

 

Provision for (reversal of) loan losses

(b)

$

662

 

$

996

 

$

(884

)

Income tax expense

(c)

 

3,515

 

 

3,459

 

 

3,246

 

Net income

(a)+(b) +(c)

$

8,650

 

$

8,480

 

$

8,250

 

 

 

 

 

 

 

 

During the second quarter of 2021, the Company purchased 638 loans from Hana for a total purchase price of $97.6 million. The Company evaluated $100.0 million of the loans purchased in accordance with the provisions of ASC 310-20, Nonrefundable Fees and Other Costs, which were recorded with a $8.9 million discount. As a result, the fair value discount on these loans is being accreted into interest income over the expected life of the loans using the effective yield method. Adjusted loan yield and net interest margin for the three months ended September 30, 2022, June 30, 2022 and September 30, 2021 excluded the impacts of contractual interest and discount accretion of the purchased Hana loans as management does not consider purchasing loan portfolios to be normal or recurring transactions. Management believes that presenting the adjusted average loan yield and net interest margin provide comparability to prior periods and these non-GAAP financial measures provide supplemental information regarding the Company’s performance.

 

 

 

 

 

 

 

($ in thousands)

 

For the Three Months Ended

 

3Q22

 

2Q22

 

3Q21

Yield on Average Loans

 

 

 

 

 

 

Interest income on loans

 

$

21,780

 

 

$

19,108

 

 

$

16,922

 

Less: interest income on purchased Hana loans

 

 

1,717

 

 

 

1,572

 

 

 

2,057

 

Adjusted interest income on loans

(a)

$

20,063

 

 

$

17,536

 

 

$

14,865

 

 

 

 

 

 

 

 

Average loans

 

$

1,614,000

 

 

$

1,560,064

 

 

$

1,308,338

 

Less: Average purchased Hana loans

 

 

64,687

 

 

 

69,180

 

 

 

85,710

 

Adjusted average loans

(b)

$

1,549,313

 

 

$

1,490,884

 

 

$

1,222,628

 

 

 

 

 

 

 

 

Average loan yield (1)

 

 

5.36

%

 

 

4.91

%

 

 

5.13

%

Effect on average loan yield (1)

 

 

0.21

%

 

 

0.19

%

 

 

0.30

%

Adjusted average loan yield (1)

(a)/(b)

 

5.15

%

 

 

4.72

%

 

 

4.83

%

 

 

 

 

 

 

 

Net Interest Margin

 

 

 

 

 

 

Net interest income

 

$

20,344

 

 

$

19,079

 

 

$

16,589

 

Less: interest income on purchased Hana loans

 

 

1,717

 

 

 

1,572

 

 

 

2,057

 

Adjusted net interest income

(c)

$

18,627

 

 

$

17,507

 

 

$

14,532

 

 

 

 

 

 

 

 

Average interest-earning assets

 

$

1,874,516

 

 

$

1,817,157

 

 

$

1,566,050

 

Less: Average purchased Hana loans

 

 

64,687

 

 

 

69,180

 

 

 

85,710

 

Adjusted average interest-earning assets

(d)

$

1,809,829

 

 

$

1,747,977

 

 

$

1,480,340

 

 

 

 

 

 

 

 

Net interest margin (1)

 

 

4.31

%

 

 

4.21

%

 

 

4.21

%

Effect on net interest margin (1)

 

 

0.22

%

 

 

0.20

%

 

 

0.30

%

Adjusted net interest margin (1)

(c)/(d)

 

4.09

%

 

 

4.01

%

 

 

3.91

%

 

 

 

 

 

 

 

(1)

Annualized.

Adjusted allowance to gross loans ratio removes the impacts of purchased Hana loans, PPP loans and allowance on accrued interest receivable. Management believes that this ratio provides greater consistency and comparability between the Company’s results and those of its peer banks.

 

 

 

 

 

 

 

($ in thousands)

 

For the Three Months Ended

 

3Q22

 

2Q22

 

3Q21

Gross loans

 

$

1,618,018

 

 

$

1,484,718

 

 

$

1,231,821

 

Less: Purchased Hana loans

 

 

(61,899

)

 

 

(66,946

)

 

 

(83,025

)

PPP loans (1)

 

 

(1,022

)

 

 

(7,151

)

 

 

(64,574

)

Adjusted gross loans

(a)

 

1,555,097

 

 

$

1,410,621

 

 

$

1,084,222

 

 

 

 

 

 

 

 

Accrued interest receivable on loans

 

$

5,203

 

 

$

4,602

 

 

$

3,659

 

Less: Accrued interest receivable on purchased Hana loans

 

 

(323

)

 

 

(290

)

 

 

(375

)

Accrued interest receivable on PPP loans (2)

 

 

(16

)

 

 

(93

)

 

 

(416

)

Add: Allowance on accrued interest receivable

 

 

 

 

 

 

 

 

465

 

Adjusted accrued interest receivable on loans

(b)

$

4,864

 

 

$

4,219

 

 

$

3,333

 

 

 

 

 

 

 

 

Adjusted gross loans and accrued interest receivable

(a)+(b) =(c)

$

1,559,961

 

 

$

1,414,840

 

 

$

1,087,555

 

 

 

 

 

 

 

 

Allowance for loan losses

 

$

18,369

 

 

$

17,702

 

 

$

14,134

 

Add: Allowance on accrued interest receivable

 

 

 

 

 

 

 

 

465

 

Adjusted Allowance

(d)

$

18,369

 

 

$

17,702

 

 

$

14,599

 

 

 

 

 

 

 

 

Adjusted allowance to gross loans ratio

(d)/(c)

 

1.18

%

 

 

1.25

%

 

 

1.34

%

 

 

 

 

 

 

 

(1)

Excludes purchased PPP loans of $57 thousand, $942 thousand and $4.7 million as of September 30, 2022, June 30, 2022 and September 30, 2021, respectively.

(2)

Excludes purchased accrued interest receivable on PPP loans of $1 thousand, $13 thousand and $30 thousand as of September 30, 2022, June 30, 2022 and September 30, 2021 respectively.

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, California, and Carrollton, Texas 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 with ten full service branch offices in Downtown Los Angeles, Los Angeles Fashion District, Los Angeles Koreatown, Cerritos, Gardena, Buena Park, and Santa Clara, California and Carrollton, Texas. The Bank also has four loan production offices in Pleasanton, California, Atlanta, Georgia, Aurora, Colorado, and Lynnwood, 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.

Cautionary Note Regarding Forward-Looking Statements

Certain matters set forth herein constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including forward-looking statements relating to the Company’s current business plans and expectations regarding future operating results. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from those projected. These risks and uncertainties, some of which are beyond our control, include, but are not limited to: business and economic conditions, particularly those affecting the financial services industry and our primary market areas; our ability to successfully manage our credit risk and the sufficiency of our allowance for loan losses; factors that can impact the performance of our loan portfolio, including real estate values and liquidity in our primary market areas, the financial health of our commercial borrowers, the success of construction projects that we finance, including any loans acquired in acquisition transactions; our ability to effectively execute our strategic plan and manage our growth; interest rate fluctuations, which could have an adverse effect on our profitability; liquidity issues, including fluctuations in the fair value and liquidity of the securities we hold for sale and our ability to raise additional capital, if necessary; external economic and/or market factors, such as changes in monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve, inflation or deflation, changes in the demand for loans, and fluctuations in consumer spending, borrowing and savings habits, which may have an adverse impact on our financial condition; continued or increasing competition from other financial institutions, credit unions, and non-bank financial services companies, many of which are subject to different regulations than we are; challenges arising from unsuccessful attempts to expand into new geographic markets, products, or services; restraints on the ability of Open Bank to pay dividends to us, which could limit our liquidity; increased capital requirements imposed by banking regulators, which may require us to raise capital at a time when capital is not available on favorable terms or at all; a failure in the internal controls we have implemented to address the risks inherent to the business of banking; inaccuracies in our assumptions about future events, which could result in material differences between our financial projections and actual financial performance; changes in our management personnel or our inability to retain motivate and hire qualified management personnel; disruptions, security breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems; disruptions, security breaches, or other adverse events affecting the third-party vendors who perform several of our critical processing functions; an inability to keep pace with the rate of technological advances due to a lack of resources to invest in new technologies; risks related to potential acquisitions; political developments, uncertainties or instability, catastrophic events, acts of war or terrorism, or natural disasters, such as earthquakes, fires, drought, pandemic diseases (such as the coronavirus) or extreme weather events, any of which may affect services we use or affect our customers, employees or third parties with which we conduct business; incremental costs and obligations associated with operating as a public company; the impact of any claims or legal actions to which we may be subject, including any effect on our reputation; compliance with governmental and regulatory requirements, including the Dodd-Frank Act and others relating to banking, consumer protection, securities and tax matters, and our ability to maintain licenses required in connection with commercial mortgage origination, sale and servicing operations; changes in federal tax law or policy; and our ability the manage the foregoing and other factors set forth in the Company’s public reports. We describe these and other risks that could affect our results in Item 1A. “Risk Factors,” of our latest Annual Report on Form 10-K for the year ended December 31, 2021 and in our other subsequent filings with the Securities and Exchange Commission.

Consolidated Balance Sheets (unaudited)

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

As of

 

% Change 3Q22 vs.

 

3Q22

 

2Q22

 

3Q21

 

2Q22

 

3Q21

Assets

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

25,516

 

 

$

14,937

 

 

$

17,617

 

 

70.8

%

 

44.8

%

Interest-bearing deposits in other banks

 

 

81,765

 

 

 

117,760

 

 

 

170,528

 

 

(30.6

)

 

(52.1

)

Cash and cash equivalents

 

 

107,281

 

 

 

132,697

 

 

 

188,145

 

 

(19.2

)

 

(43.0

)

Securities available for sale, at fair value

 

 

186,438

 

 

 

174,814

 

 

 

102,535

 

 

6.6

 

 

81.8

 

Other investments

 

 

12,074

 

 

 

12,205

 

 

 

11,025

 

 

(1.1

)

 

9.5

 

Loans held for sale

 

 

36,642

 

 

 

67,255

 

 

 

94,466

 

 

(45.5

)

 

(61.2

)

Real estate loans

 

 

830,125

 

 

 

776,785

 

 

 

688,430

 

 

6.9

 

 

20.6

 

SBA loans (1)

 

 

232,569

 

 

 

247,413

 

 

 

303,625

 

 

(6.0

)

 

(23.4

)

C&I loans

 

 

133,855

 

 

 

128,620

 

 

 

123,422

 

 

4.1

 

 

8.5

 

Home mortgage loans

 

 

419,469

 

 

 

331,362

 

 

 

115,255

 

 

26.6

 

 

263.9

 

Consumer & other loans

 

 

2,000

 

 

 

538

 

 

 

1,089

 

 

271.7

 

 

83.7

 

Gross loans, net of unearned income

 

 

1,618,018

 

 

 

1,484,718

 

 

 

1,231,821

 

 

9.0

 

 

31.4

 

Allowance for loan losses

 

 

(18,369

)

 

 

(17,702

)

 

 

(14,134

)

 

3.8

 

 

30.0

 

Net loans receivable

 

 

1,599,649

 

 

 

1,467,016

 

 

 

1,217,687

 

 

9.0

 

 

31.4

 

Premises and equipment, net

 

 

4,383

 

 

 

4,493

 

 

 

4,199

 

 

(2.4

)

 

4.4

 

Accrued interest receivable, net

 

 

5,856

 

 

 

5,112

 

 

 

3,931

 

 

14.6

 

 

49.0

 

Servicing assets

 

 

12,889

 

 

 

12,708

 

 

 

12,389

 

 

1.4

 

 

4.0

 

Company owned life insurance

 

 

21,464

 

 

 

21,317

 

 

 

11,070

 

 

0.7

 

 

93.9

 

Deferred tax assets

 

 

17,296

 

 

 

13,371

 

 

 

5,247

 

 

29.4

 

 

229.6

 

Operating right-of-use assets

 

 

8,265

 

 

 

8,036

 

 

 

9,270

 

 

2.8

 

 

(10.8

)

Other assets

 

 

17,338

 

 

 

15,218

 

 

 

19,947

 

 

13.9

 

 

(13.1

)

Total assets

 

$

2,029,575

 

 

$

1,934,242

 

 

$

1,679,911

 

 

4.9

%

 

20.8

%

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

Noninterest bearing

 

$

794,631

 

 

$

820,311

 

 

$

713,141

 

 

(3.1

)%

 

11.4

%

Money market and others

 

 

524,911

 

 

 

519,389

 

 

 

351,186

 

 

1.1

 

 

49.5

 

Time deposits greater than $250,000

 

 

277,785

 

 

 

237,634

 

 

 

209,091

 

 

16.9

 

 

32.9

 

Other time deposits

 

 

219,484

 

 

 

164,289

 

 

 

222,988

 

 

33.6

 

 

(1.6

)

Total deposits

 

 

1,816,811

 

 

 

1,741,623

 

 

 

1,496,406

 

 

4.3

 

 

21.4

 

Federal Home Loan Bank advances

 

 

10,000

 

 

 

 

 

 

 

 

 

 

 

Accrued interest payable

 

 

1,099

 

 

 

612

 

 

 

575

 

 

79.6

 

 

91.1

 

Operating lease liabilities

 

 

9,485

 

 

 

9,335

 

 

 

10,703

 

 

1.6

 

 

(11.4

)

Other liabilities

 

 

22,085

 

 

 

13,180

 

 

 

13,603

 

 

67.6

 

 

62.4

 

Total liabilities

 

 

1,859,480

 

 

 

1,764,750

 

 

 

1,521,287

 

 

5.4

 

 

22.2

 

Shareholders’ equity

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

78,782

 

 

 

78,718

 

 

 

78,718

 

 

0.1

 

 

0.1

 

Additional paid-in capital

 

 

9,424

 

 

 

9,089

 

 

 

8,491

 

 

3.7

 

 

11.0

 

Retained earnings

 

 

99,487

 

 

 

92,659

 

 

 

71,436

 

 

7.4

 

 

39.3

 

Accumulated other comprehensive (loss) income

 

 

(17,598

)

 

 

(10,974

)

 

 

(21

)

 

60.4

 

 

n/m

 

Total shareholders’ equity

 

 

170,095

 

 

 

169,492

 

 

 

158,624

 

 

0.4

 

 

7.2

 

Total liabilities and shareholders' equity

 

$

2,029,575

 

 

$

1,934,242

 

 

$

1,679,911

 

 

4.9

%

 

20.8

%

 

 

 

 

 

 

 

 

 

 

 

(1)

Includes SBA Paycheck Protection Program (“PPP”) loans of $1.1 million, $8.1 million and $69.3 million as of September 30, 2022, June 30, 2022 and September 30, 2021, respectively.

Consolidated Statements of Income (unaudited)

 

 

 

 

 

 

 

 

 

 

 

($ in thousands, except share and per share data)

 

For the Three Months Ended

 

% Change 3Q22 vs.

 

3Q22

 

2Q22

 

3Q21

 

2Q22

 

3Q21

Interest income

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

21,780

 

$

19,108

 

$

16,922

 

 

14.0

%

 

28.7

%

Interest on securities available for sale

 

 

881

 

 

703

 

 

269

 

 

25.3

 

 

227.5

 

Other interest income

 

 

573

 

 

337

 

 

164

 

 

70.0

 

 

249.4

 

Total interest income

 

 

23,234

 

 

20,148

 

 

17,355

 

 

15.3

 

 

33.9

 

Interest expense

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

 

2,890

 

 

1,069

 

 

766

 

 

170.3

 

 

277.3

 

Total interest expense

 

 

2,890

 

 

1,069

 

 

766

 

 

170.3

 

 

277.3

 

Net interest income

 

 

20,344

 

 

19,079

 

 

16,589

 

 

6.6

 

 

22.6

 

Provision for (reversal of) loan losses

 

 

662

 

 

996

 

 

(884

)

 

(33.5

)

 

(174.9

)

Net interest income after provision for loan losses

 

 

19,682

 

 

18,083

 

 

17,473

 

 

8.8

 

 

12.6

 

Noninterest income

 

 

 

 

 

 

 

 

 

 

Service charges on deposits

 

 

454

 

 

427

 

 

409

 

 

6.3

 

 

11.0

 

Loan servicing fees, net of amortization

 

 

610

 

 

654

 

 

599

 

 

(6.7

)

 

1.8

 

Gain on sale of loans

 

 

3,490

 

 

3,873

 

 

2,188

 

 

(9.9

)

 

59.5

 

Other income

 

 

267

 

 

405

 

 

346

 

 

(34.1

)

 

(22.8

)

Total noninterest income

 

 

4,821

 

 

5,359

 

 

3,542

 

 

(10.0

)

 

36.1

 

Noninterest expense

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

7,343

 

 

7,109

 

 

5,724

 

 

3.3

 

 

28.3

 

Occupancy and equipment

 

 

1,537

 

 

1,489

 

 

1,326

 

 

3.2

 

 

15.9

 

Data processing and communication

 

 

586

 

 

492

 

 

448

 

 

19.1

 

 

30.8

 

Professional fees

 

 

602

 

 

364

 

 

308

 

 

65.4

 

 

95.5

 

FDIC insurance and regulatory assessments

 

 

238

 

 

192

 

 

146

 

 

24.0

 

 

63.0

 

Promotion and advertising

 

 

177

 

 

165

 

 

175

 

 

7.3

 

 

1.1

 

Directors’ fees

 

 

170

 

 

190

 

 

183

 

 

(10.5

)

 

(7.1

)

Foundation donation and other contributions

 

 

875

 

 

852

 

 

842

 

 

2.7

 

 

3.9

 

Other expenses

 

 

810

 

 

650

 

 

367

 

 

24.6

 

 

120.7

 

Total noninterest expense

 

 

12,338

 

 

11,503

 

 

9,519

 

 

7.3

 

 

29.6

 

Income before income tax expense

 

 

12,165

 

 

11,939

 

 

11,496

 

 

1.9

 

 

5.8

 

Income tax expense

 

 

3,515

 

 

3,459

 

 

3,246

 

 

1.6

 

 

8.3

 

Net income

 

$

8,650

 

$

8,480

 

$

8,250

 

 

2.0

%

 

4.8

%

 

 

 

 

 

 

 

 

 

 

 

Book value per share

 

$

11.19

 

$

11.16

 

$

10.48

 

 

0.3

%

 

6.8

%

Earnings per share - Basic

 

$

0.56

 

$

0.55

 

$

0.54

 

 

1.8

%

 

3.7

%

Earnings per share - Diluted

 

$

0.55

 

$

0.54

 

$

0.54

 

 

1.9

%

 

1.9

%

 

 

 

 

 

 

 

 

 

 

 

Shares of common stock outstanding

 

 

15,199,840

 

 

15,189,203

 

 

15,133,407

 

 

0.1

%

 

0.4

%

Weighted Average Shares:

 

 

 

 

 

 

 

 

 

 

- Basic

 

 

15,195,826

 

 

15,141,975

 

 

15,133,407

 

 

0.4

%

 

0.4

%

- Diluted

 

 

15,275,156

 

 

15,234,577

 

 

15,200,613

 

 

0.3

%

 

0.5

%

 

 

 

 

 

 

 

 

 

 

 

Key Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

Change 3Q22 vs.

 

3Q22

 

2Q22

 

3Q21

 

2Q22

 

3Q21

Return on average assets (ROA) (1)

 

1.77

%

 

1.79

%

 

2.03

%

 

%

 

(0.3

)%

Return on average equity (ROE) (1)

 

19.91

%

 

20.29

%

 

21.30

%

 

(0.4

)%

 

(1.4

)%

Net interest margin (1)

 

4.31

%

 

4.21

%

 

4.21

%

 

0.1

%

 

0.1

%

Efficiency ratio

 

49.03

%

 

47.07

%

 

47.28

%

 

2.0

%

 

1.8

%

 

 

 

 

 

 

 

 

 

 

 

Total risk-based capital ratio

 

13.10

%

 

13.51

%

 

13.81

%

 

(0.4

)%

 

(0.7

)%

Tier 1 risk-based capital ratio

 

11.92

%

 

12.29

%

 

12.63

%

 

(0.4

)%

 

(0.7

)%

Common equity tier 1 ratio

 

11.92

%

 

12.29

%

 

12.63

%

 

(0.4

)%

 

(0.7

)%

Leverage ratio

 

9.52

%

 

9.48

%

 

9.75

%

 

%

 

(0.2

)%

 

 

 

 

 

 

 

 

 

 

 

(1)

Annualized.

Consolidated Statements of Income (unaudited)

 

 

 

 

 

 

 

($ in thousands, except share and per share data)

 

For the Nine Months Ended

 

3Q22

 

3Q21

 

% Change

Interest income

 

 

 

 

 

 

Interest and fees on loans

 

$

58,145

 

$

45,177

 

 

28.7

%

Interest on securities available for sale

 

 

2,114

 

 

723

 

 

192.4

%

Other interest income

 

 

1,067

 

 

436

 

 

144.7

%

Total interest income

 

 

61,326

 

 

46,336

 

 

32.4

%

Interest expense

 

 

 

 

 

 

Interest on deposits

 

 

4,613

 

 

2,406

 

 

91.7

%

Total interest expense

 

 

4,613

 

 

2,406

 

 

91.7

%

Net interest income

 

 

56,713

 

 

43,930

 

 

29.1

%

Provision for (reversal of) loan losses

 

 

1,999

 

 

(1,376

)

 

(245.3

)%

Net interest income after provision for loan losses

 

 

54,714

 

 

45,306

 

 

20.8

%

Noninterest income

 

 

 

 

 

 

Service charges on deposits

 

 

1,269

 

 

1,157

 

 

9.7

%

Loan servicing fees, net of amortization

 

 

1,711

 

 

1,432

 

 

19.5

%

Gain on sale of loans

 

 

10,601

 

 

5,280

 

 

100.8

%

Other income

 

 

815

 

 

859

 

 

(5.1

)%

Total noninterest income

 

 

14,396

 

 

8,728

 

 

64.9

%

Noninterest expense

 

 

 

 

 

 

Salaries and employee benefits

 

 

20,109

 

 

15,693

 

 

28.1

%

Occupancy and equipment

 

 

4,404

 

 

3,795

 

 

16.0

%

Data processing and communication

 

 

1,571

 

 

1,363

 

 

15.3

%

Professional fees

 

 

1,290

 

 

925

 

 

39.5

%

FDIC insurance and regulatory assessments

 

 

637

 

 

401

 

 

58.9

%

Promotion and advertising

 

 

531

 

 

528

 

 

0.6

%

Directors’ fees

 

 

537

 

 

427

 

 

25.8

%

Foundation donation and other contributions

 

 

2,542

 

 

1,989

 

 

27.8

%

Other expenses

 

 

1,882

 

 

1,153

 

 

63.2

%

Total noninterest expense

 

 

33,503

 

 

26,274

 

 

27.5

%

Income before income tax expense

 

 

35,607

 

 

27,760

 

 

28.3

%

Income tax expense

 

 

10,325

 

 

8,054

 

 

28.2

%

Net income

 

$

25,282

 

$

19,706

 

 

28.3

%

 

 

 

 

 

 

 

Book value per share

 

$

11.19

 

$

10.48

 

 

6.8

%

Earnings per share - Basic

 

$

1.63

 

$

1.29

 

 

26.4

%

Earnings per share - Diluted

 

$

1.62

 

$

1.29

 

 

25.6

%

 

 

 

 

 

 

 

Shares of common stock outstanding

 

 

15,199,840

 

 

15,133,407

 

 

0.4

%

Weighted Average Shares:

 

 

 

 

 

 

- Basic

 

 

15,158,749

 

 

15,071,327

 

 

0.6

%

- Diluted

 

 

15,246,345

 

 

15,133,573

 

 

0.7

%

 

 

 

 

 

 

 

Key Ratios

 

 

 

 

 

 

 

 

 

For the Nine Months Ended

 

3Q22

 

 

3Q21

 

 

Change

Return on average assets (ROA) (1)

 

1.80

%

 

1.73

%

 

0.1

%

Return on average equity (ROE) (1)

 

19.91

%

 

17.55

%

 

2.4

%

Net interest margin (1)

 

4.22

%

 

4.01

%

 

0.2

%

Efficiency ratio

 

47.11

%

 

49.90

%

 

(2.8

)%

 

 

 

 

 

 

 

Total risk-based capital ratio

 

13.10

%

 

13.81

%

 

(0.7

)%

Tier 1 risk-based capital ratio

 

11.92

%

 

12.63

%

 

(0.7

)%

Common equity tier 1 ratio

 

11.92

%

 

12.63

%

 

(0.7

)%

Leverage ratio

 

9.52

%

 

9.75

%

 

(0.2

)%

 

 

 

 

 

 

 

(1)

Annualized.

Asset Quality

 

 

 

 

 

 

 

($ in thousands)

 

As of and For the Three Months Ended

 

3Q22

 

2Q22

 

3Q21

Nonaccrual Loans (1)

 

$

2,251

 

 

$

2,172

 

 

$

1,052

 

Loans 90 days or more past due, accruing

 

 

 

 

 

5

 

 

 

 

Accruing restructured loans

 

 

 

 

 

 

 

 

 

Nonperforming loans

 

 

2,251

 

 

 

2,177

 

 

 

1,052

 

Other real estate owned ("OREO")

 

 

 

 

 

 

 

 

 

Nonperforming assets

 

$

2,251

 

 

$

2,177

 

 

$

1,052

 

 

 

 

 

 

 

 

Criticized loans (2) by loan type:

 

 

 

 

 

 

SBA loans

 

$

1,817

 

 

$

1,738

 

 

$

1,881

 

C&I loans

 

 

742

 

 

 

297

 

 

 

320

 

Home mortgage loans

 

 

983

 

 

 

985

 

 

 

 

Total criticized loans (2)

 

$

3,542

 

 

$

3,020

 

 

$

2,201

 

 

 

 

 

 

 

 

Nonperforming assets/total assets

 

 

0.11

%

 

 

0.11

%

 

 

0.06

%

Nonperforming assets / gross loans plus OREO

 

 

0.14

%

 

 

0.15

%

 

 

0.09

%

Nonperforming loans / gross loans

 

 

0.14

%

 

 

0.15

%

 

 

0.09

%

Allowance for loan losses / nonperforming loans

 

 

816

%

 

 

813

%

 

 

1344

%

Allowance for loan losses / nonperforming assets

 

 

816

%

 

 

813

%

 

 

1344

%

Allowance for loan losses / gross loans

 

 

1.14

%

 

 

1.19

%

 

 

1.15

%

Criticized loans (2) / gross loans

 

 

0.22

%

 

 

0.20

%

 

 

0.18

%

Classified loans / gross loans

 

 

0.22

%

 

 

0.20

%

 

 

0.18

%

 

 

 

 

 

 

 

Net (recoveries) charge-offs

 

$

(5

)

 

$

(34

)

 

$

(4

)

Net (recoveries) charge-offs to average gross loans (3)

 

 

(0.00

)%

 

 

(0.01

)%

 

 

(0.00

)%

 

 

 

 

 

 

 

(1)

Includes the guaranteed portion of SBA loans that are in liquidation totaling $442 thousand and $346 thousand as of September 30, 2022 and June 30, 2022, respectively.

(2)

Consists of special mention, substandard, doubtful and loss categories.

(3)

Annualized.

 

 

 

 

 

 

 

($ in thousands)

 

3Q22

 

2Q22

 

3Q21

Accruing delinquent loans 30-89 days past due

 

 

 

 

 

 

30-59 days

 

$

360

 

$

447

 

$

263

60-89 days

 

 

845

 

 

 

 

1,064

Total (1)

 

$

1,205

 

$

447

 

$

1,327

 

 

 

 

 

 

 

(1)

Includes the guaranteed portion of PPP loans totaling $756 thousand as of September 30, 2022.

Average Balance Sheet, Interest and Yield/Rate Analysis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

3Q22

 

2Q2022

 

3Q21

($ in thousands)

 

Average

Balance

 

Interest

and Fees

 

Yield/

Rate (1)

 

Average

Balance

 

Interest

and Fees

 

Yield/

Rate (1)

 

Average

Balance

 

Interest

and Fees

 

Yield/

Rate (1)

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits in other banks

 

$

75,599

 

$

427

 

2.21

%

 

$

79,628

 

$

197

 

0.98

%

 

$

137,662

 

$

47

 

0.13

%

Federal funds sold and other investments

 

 

12,221

 

 

146

 

4.78

 

 

 

11,966

 

 

140

 

4.70

 

 

 

11,041

 

 

117

 

4.25

 

Available-for-sale debt securities, at fair value

 

 

172,696

 

 

881

 

2.04

 

 

 

165,499

 

 

703

 

1.70

 

 

 

109,009

 

 

269

 

0.99

 

Real estate loans

 

 

810,158

 

 

10,144

 

4.97

 

 

 

751,610

 

 

8,743

 

4.67

 

 

 

678,642

 

 

7,680

 

4.49

 

SBA loans

 

 

286,903

 

 

5,850

 

8.09

 

 

 

353,138

 

 

5,707

 

6.48

 

 

 

403,279

 

 

6,835

 

6.72

 

C&I loans

 

 

140,098

 

 

1,952

 

5.53

 

 

 

160,291

 

 

1,811

 

4.53

 

 

 

107,614

 

 

1,074

 

3.96

 

Home mortgage loans

 

 

375,804

 

 

3,820

 

4.07

 

 

 

294,341

 

 

2,837

 

3.86

 

 

 

117,825

 

 

1,317

 

4.47

 

Consumer & other loans

 

 

1,037

 

 

14

 

4.88

 

 

 

684

 

 

10

 

5.49

 

 

 

978

 

 

16

 

6.49

 

Loans (2)

 

 

1,614,000

 

 

21,780

 

5.36

 

 

 

1,560,064

 

 

19,108

 

4.91

 

 

 

1,308,338

 

 

16,922

 

5.13

 

Total interest-earning assets

 

 

1,874,516

 

 

23,234

 

4.92

 

 

 

1,817,157

 

 

20,148

 

4.44

 

 

 

1,566,050

 

 

17,355

 

4.40

 

Noninterest-earning assets

 

 

83,398

 

 

 

 

 

 

73,594

 

 

 

 

 

 

56,807