2022 First Quarter Highlights compared with 2021 First
Quarter:
- Financial Results:
- Net income of $8.2 million, up $3.1 million, or 61%
- Diluted earnings per share of $0.53, up $0.20, or 61%
- Net interest income of $17.3 million, up $4.5 million, or
36%
- Provision for loan losses of $341 thousand, down $279 thousand,
or 45%
- Noninterest income of $4.2 million, up $1.3 million, or
42%
- Noninterest expense of $9.7 million, up $1.7 million, or
21%
- Pre-provision net revenue (1) of $11.8 million, up $4.1
million, or 53%
- Total assets of $1.86 billion, up $409 million, or 28%
- Total loans (2) of $1.51 billion, up $330 million, or 28%;
Average loans (2) of $1.44 billion, up $278.9 million, or 24%
- Total deposits of $1.67 billion, up $387 million, or 30%;
Average deposits of $1.57 billion, up $327.3 million, or 26%
- Noninterest-bearing deposits to total deposits of 51%, up from
45%
- Net interest margin of 4.12%, up from 3.80%
- Return on average equity of 19.54%, up from 14.02%
- Return on average assets of 1.85%, up from 1.44%
- Efficiency ratio of 44.93%, an improvement from 50.67%
- Credit Quality:
- Allowance for loan losses to gross loans of 1.17%, compared to
1.33%
- Adjusted allowance to gross loans (1) of 1.24%, compared to
1.59%
- Net loan recoveries to average gross loans of 0.00%
- Nonperforming loans to gross loans of 0.20%, compared to
0.10%
- Criticized loans (3) to gross loans of 0.27%, down from
0.62%
- Capital Levels:
- Quarterly cash dividend of $0.10 per share, a 43% increase from
$0.07 per share
- Capital position well-capitalized with a Common Equity Tier 1
(“CET1”) ratio of 12.11%.
- Book value per common share of $10.97, up 12%
___________________________________________________________
(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 first
quarter of 2022. Net income for the first quarter of 2022 was $8.2
million, or $0.53 per diluted common share, compared with $9.1
million, or $0.59 per diluted common share, for the fourth quarter
of 2021, and $5.1 million, or $0.33 per diluted common share, for
the first quarter of 2021.
Min Kim, President and Chief Executive Officer:
“We started this year with another strong quarter. Our net
income and diluted earnings per share increased 61% each from a
year ago. This growth in earnings was driven by strong growth in
our balance sheet, expanded net interest margin, and improved
efficiency. Our loans grew 28%, from a year ago, through balanced
increases across all categories, further diversifying our loan
portfolio. Total deposits grew 30% from a year ago with
noninterest-bearing deposits reaching a record level at 50.8% of
total deposits. We also expanded our branch network by opening our
tenth full service branch in Cerritos, California during the
quarter. We remain optimistic about our future growth and
sustainability of our strong financial performance.”
SELECTED FINANCIAL HIGHLIGHTS
($ in thousands, except per share
data)
As of and For the Three Months
Ended
% Change 1Q22 vs.
1Q22
4Q21
1Q21
4Q21
1Q21
Selected Income Statement Data:
Net interest income
$
17,290
$
17,096
$
12,755
1.1
%
35.6
%
Provision for loan losses
341
1,898
620
(82.0
)
(45.0
)
Noninterest income
4,216
7,289
2,966
(42.2
)
42.1
Noninterest expense
9,662
9,591
7,966
0.7
21.3
Income tax expense
3,351
3,762
2,058
(10.9
)
62.8
Net Income
$
8,152
$
9,134
$
5,077
(10.8
) %
60.6
%
Diluted earnings per share
$
0.53
$
0.59
$
0.33
(10.2
) %
60.6
%
Selected Balance Sheet Data:
Total loans (1)
$
1,514,653
$
1,403,447
$
1,184,447
7.9
%
27.9
%
Total deposits
$
1,672,003
$
1,534,066
$
1,285,390
9.0
%
30.1
%
Total assets
$
1,863,945
$
1,726,691
$
1,455,334
7.9
%
28.1
%
Average loans (1)
$
1,444,054
$
1,343,414
$
1,165,150
7.5
%
23.9
%
Average deposits
$
1,570,376
$
1,545,799
$
1,243,091
1.6
%
26.3
%
Credit Quality:
Nonperforming loans
$
2,806
$
3,200
$
1,148
(12.3
) %
144.4
%
Net (recoveries) charge-offs to average
gross loans (2)
(0.00
) %
0.05
%
(0.00
) %
(0.05
) %
0.00
%
Allowance for loan losses to gross
loans
1.17
%
1.23
%
1.33
%
(0.06
) %
(0.16
) %
Financial Ratios:
Return on average assets (2)
1.85
%
2.11
%
1.44
%
(0.26
) %
0.41
%
Return on average equity (2)
19.54
%
22.72
%
14.02
%
(3.18
) %
5.52
%
Net interest margin (2)
4.12
%
4.07
%
3.80
%
0.05
%
0.32
%
Common equity tier 1 capital ratio
12.11
%
12.42
%
13.79
%
(0.31
) %
(1.68
) %
Leverage ratio
9.80
%
9.58
%
10.38
%
0.22
%
(0.58
) %
Efficiency ratio (3)
44.93
%
39.34
%
50.67
%
5.59
%
(5.74
) %
Book value per common share
$
10.97
$
10.92
$
9.77
0.5
%
12.3
%
- Includes loans held for sale.
- Annualized.
- 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 1Q22 vs.
1Q22
4Q21
1Q21
4Q21
1Q21
Interest Income
Interest income
$
17,944
$
17,822
$
13,632
0.7
%
31.6
%
Interest expense
654
726
877
(9.9
)
(25.4
)
Net interest income
$
17,290
$
17,096
$
12,755
1.1
%
35.6
%
($ in thousands)
For the Three Months
Ended
1Q22
4Q21
1Q21
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
$
1,444,054
$
17,257
4.84
%
$
1,343,414
$
17,271
5.10
%
$
1,165,150
$
13,284
4.62
%
Total interest-earning assets
$
1,698,799
$
17,944
4.28
%
$
1,668,865
$
17,822
4.24
%
$
1,358,119
$
13,632
4.07
%
Interest-bearing Liabilities
Interest-bearing deposits
$
786,915
$
654
0.34
%
$
780,787
$
726
0.37
%
$
698,599
$
877
0.51
%
Total interest-bearing liabilities
$
786,915
$
654
0.34
%
$
780,791
$
726
0.37
%
$
703,599
$
877
0.51
%
Ratios
Net interest Income/interest rate
spreads
$
17,290
3.94
%
$
17,096
3.87
%
$
12,755
3.56
%
Net interest margin
4.12
%
4.07
%
3.80
%
Total deposits / cost of deposits
$
1,570,376
$
654
0.17
%
$
1,545,799
$
726
0.19
%
$
1,243,091
$
877
0.29
%
Total funding liabilities / cost of
funds
$
1,570,376
$
654
0.17
%
$
1,545,803
$
726
0.19
%
$
1,248,091
$
877
0.28
%
- Annualized.
($ in thousands)
For the Three Months
Ended
Yield % Change 1Q22
vs.
1Q22
4Q21
1Q21
Interest
& Fees
Yield (1)
Interest
& Fees
Yield (1)
Interest
& Fees
Yield (1)
4Q21
1Q21
Loan Yield Component
Contractual interest rate
$
15,120
4.24
%
$
14,509
4.29
%
$
12,168
4.23
%
(0.05
) %
0.01
%
SBA discount accretion
1,433
0.40
1,571
0.46
507
0.18
(0.06
)
0.22
Amortization of net deferred fees
500
0.14
1,087
0.32
538
0.19
(0.18
)
(0.05
)
Amortization of premium
16
—
3
—
—
—
0.00
—
Net interest recognized on nonaccrual
loans
34
-0.01
(16
)
-0.00
(2
)
—
0.01
0.01
Prepayment penalties (2) and other
fees
154
0.05
117
0.03
73
0.02
0.02
0.03
Yield on loans
$
17,257
4.84
%
$
17,271
5.10
%
$
13,284
4.62
%
(0.26
) %
0.22
%
Amortization of net deferred fees:
PPP loan forgiveness (3)
$
483
0.13
%
$
920
0.27
%
$
175
0.06
%
(0.14
) %
0.07
%
Other
17
0.01
167
0.05
363
0.13
(0.04
)
(0.12
)
Total amortization of net deferred
fees
$
500
0.14
%
$
1,087
0.32
%
$
538
0.19
%
(0.18
) %
(0.05
) %
- Annualized.
- Prepayment penalty income of $95 thousand, $84 thousand and $69
thousand for the three months ended March 31, 2022, December 31,
2021 and March 31, 2021, respectively, was from commercial real
estate and C&I loans.
- As of March 31, 2022, there were unamortized net deferred fees
of $579 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
1Q22
4Q21
1Q21
Hana Loan Purchase:
Contractual interest rate
$
976
$
1,027
$
—
Purchased loan discount accretion
772
826
—
Other fees
7
10
—
Total interest income
$
1,755
$
1,863
$
—
Effect on average loan yield
(1)
0.26
%
0.26
%
—
%
Effect on net interest margin
(1)
0.25
%
0.26
%
—
%
($ in thousands)
For the Three Months
Ended
1Q22
4Q21
1Q21
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)
$
1,444,054
$
17,257
4.84
%
$
1,343,414
$
17,271
5.10
%
$
1,165,150
$
13,284
4.62
%
Adjusted average loan yield excluding
purchased loans (1)(2)
$
1,369,423
$
15,502
4.58
%
$
1,263,789
$
15,408
4.84
%
$
1,165,150
$
13,284
4.62
%
Net interest margin (1)
$
1,698,799
$
17,290
4.12
%
$
1,668,865
$
17,096
4.07
%
$
1,358,119
$
12,755
3.80
%
Adjusted interest margin excluding
purchased loans (1)(2)
$
1,624,168
$
15,535
3.87
%
$
1,589,240
$
15,233
3.81
%
$
1,358,119
$
12,755
3.80
%
- Annualized.
- See reconciliation of GAAP to non-GAAP financial measures.
First Quarter 2022 vs. Fourth Quarter
2021
Net interest income increased $194 thousand, or 1.1%, primarily
due to higher interest income on securities available-for-sale. Net
interest margin was 4.12%, an increase of 5 basis points from
4.07%.
- An increase of $168 thousand in interest income from securities
available-for-sale was primarily due to higher average
balance.
- An increase of $754 thousand in interest income on home
mortgage loans from an $81.6 million purchase was offset by a $714
thousand decrease in interest income on PPP loans from lower
average balance.
- A $72 thousand decrease in interest expense contributed to the
increase in net interest income.
- Average loan yield was 4.84%, a decrease of 26 basis points
from 5.10%, primarily due to lower interest income in PPP loans.
Average yield on interest earning assets was 4.28%, an increase of
4 basis points from 4.24%, due to lower average balance in
low-yielding interest-bearing deposits in other banks.
- Average cost of deposits was 0.17%, a decrease of 2 basis
points from 0.19%.
First Quarter 2022 vs. First Quarter
2021
Net interest income increased $4.5 million, or 35.6%, primarily
due to higher interest income on loans. Net interest margin was
4.12%, an increase of 32 basis points from 3.80%.
- An increase of $4.0 million in interest income on loans was
primarily due to higher average loan balance from loan growth in
home loans and C&I loans, discount accretions from the Hana
loan purchase, and loan fees from PPP loan forgiveness.
- The improvement of 32 basis points in net interest margin was
primarily driven by a 22 basis point increase in average loan yield
and a 17 basis point decrease in average cost of interest-bearing
liabilities.
Provision for loan losses
First Quarter 2022 vs. Fourth Quarter
2021
The Company recorded $341 thousand provision for loan losses,
compared with a $1.9 million provision for loan losses. The $341
thousand provision for loan losses was primarily due to loan growth
from home mortgage purchases, partially offset by improvements in
qualitative assessments of our loan portfolio.
First Quarter 2022 vs. First Quarter
2021
The Company recorded $341 thousand provision for loan losses,
compared with $620 thousand provision for loan losses.
Noninterest Income
($ in thousands)
For the Three Months
Ended
% Change 1Q22 vs.
1Q22
4Q21
1Q21
4Q21
1Q21
Noninterest income
Service charges on deposits
$
388
$
405
$
355
(4.2
) %
9.3
%
Loan servicing fees, net of
amortization
447
521
531
(14.2
)
(15.8
)
Gain on sale of loans
3,238
6,033
1,882
(46.3
)
72.1
Other income
143
330
198
(56.7
)
(27.8
)
Total noninterest income
$
4,216
$
7,289
$
2,966
(42.2
) %
42.1
%
First Quarter 2022 vs. Fourth Quarter
2021
Noninterest income decreased $3.1 million, or 42.2%, primarily
due to lower gains on sale of loans.
- Gains on sale of loans were $3.2 million, down $2.8 million
from the fourth quarter of 2021. The decrease was primarily due to
a decreased loan sales volume. The Company sold $31.8 million in
SBA loans at an average premium of 11.02%, compared to the sale of
$56.8 million at an average premium of 10.98%.
First Quarter 2022 vs. First Quarter
2021
Noninterest income increased $1.3 million, or 42.1%, primarily
due to higher gains on sale of loans.
- Gains on sales of loans were $3.2 million, up $1.4 million from
the first quarter of 2021. The increase was mainly driven by higher
sales volume and premiums on SBA loans. The Company sold $31.8
million in SBA loans at an average premium of 11.02%, compared to
the sale of $22.4 million at an average premium of 10.51%.
Noninterest Expense
($ in thousands)
For the Three Months
Ended
% Change 1Q22 vs.
1Q22
4Q21
1Q21
4Q21
1Q21
Noninterest expense
Salaries and employee benefits
$
5,657
$
5,560
$
4,662
1.7
%
21.3
%
Occupancy and equipment
1,378
1,418
1,235
(2.8
)
11.6
Data processing and communication
493
637
448
(22.6
)
10.0
Professional fees
324
267
314
21.3
3.2
FDIC insurance and regulatory
assessments
207
182
132
13.7
56.8
Promotion and advertising
189
156
177
21.2
6.8
Directors’ fees
177
166
116
6.6
52.6
Foundation donation and other
contributions
815
901
507
(9.5
)
60.7
Other expenses
422
304
375
38.8
12.5
Total noninterest expense
$
9,662
$
9,591
$
7,966
0.7
%
21.3
%
First Quarter 2022 vs. Fourth Quarter
2021
Noninterest expense remained relatively stable in the first
quarter of 2022 at $9.7 million compared to $9.6 million for the
fourth quarter of 2021.
First Quarter 2022 vs. First Quarter
2021
Noninterest expense increased $1.7 million, or 21.3%, primarily
due to higher salaries and employee benefits, and foundation
donation and other contributions.
- Salaries and employee benefits were $5.7 million, up $995
thousand from the first quarter of 2021. The increase was primarily
due to a decrease in deferred loan origination costs compared to
higher origination costs related to PPP loans for the first quarter
of 2021.
- Foundation donation and other contributions were $815 thousand,
up $308 thousand from the first quarter of 2021. The increase was
primarily due to higher donation accruals for Open Stewardship
Foundation as a result of higher net income compared to the first
quarter of 2021.
Income Tax Expense
First Quarter 2022 vs. Fourth Quarter
2021
Income tax expense was $3.4 million, and the effective tax rate
was 29.1%, compared to income tax expense of $3.8 million and the
effective rate of 29.2% for the fourth quarter of 2021.
First Quarter 2022 vs. First Quarter
2021
Income tax expense was $3.4 million and the effective tax rate
was 29.1%, compared to income tax expense of $2.1 million and the
effective rate of 28.8% for the first quarter of 2021.
Balance Sheet Highlights
Loans
($ in thousands)
As of
% Change 1Q22 vs.
1Q22
4Q21
1Q21
4Q21
1Q21
Real estate loans
$
730,841
$
701,450
$
662,445
4.2
%
10.3
%
SBA loans (1)
253,064
275,858
263,185
(8.3
)
(3.8
)
C&I loans
176,934
162,543
103,883
8.9
70.3
Home mortgage loans
266,465
173,303
125,285
53.8
112.7
Consumer & other loans
1,106
865
1,074
27.9
3.0
Gross loans
$
1,428,410
$
1,314,019
$
1,155,872
8.7
%
23.6
%
- Includes PPP loans of $22.1 million, $40.6 million and $113.6
million as of March 31, 2022, December 31, 2021 and March 31, 2021,
respectively.
The following table presents new loan originations based on loan
commitment amounts for the periods indicated:
($ in thousands)
For the Three Months
Ended
% Change 1Q22 vs.
1Q22
4Q21
1Q21
4Q21
1Q21
Real estate loans
$
49,868
$
35,458
$
42,748
40.6
%
16.7
%
SBA loans (1)
37,400
65,492
105,340
(42.9
)
(64.5
)
C&I loans
11,876
47,981
9,505
(75.2
)
24.9
Home mortgage loans
22,785
19,295
11,563
18.1
97.1
Gross loans
$
121,929
$
168,226
$
169,156
(27.5
) %
(27.9
) %
- Includes PPP loans of $74.2 million for the three months ended
March 31, 2021.
The following table presents changes in gross loans by loan
activity for the periods indicated:
($ in thousands)
For the Three Months
Ended
1Q22
4Q21
1Q21
Loan activities:
Gross loans, beginning
$
1,314,019
$
1,231,821
$
1,099,736
New originations
121,929
168,226
169,156
Net line advances
17,455
7,759
(11,846
)
Purchases
81,552
48,915
—
Sales
(31,819
)
(60,954
)
(26,621
)
Paydowns
(15,972
)
(12,373
)
(12,767
)
Payoffs
(45,391
)
(46,778
)
(36,987
)
PPP Payoffs
(19,079
)
(29,918
)
(22,886
)
Other
5,716
7,321
(1,913
)
Total
114,391
82,198
56,136
Gross loans, ending
$
1,428,410
$
1,314,019
$
1,155,872
First Quarter 2022 vs. Fourth Quarter
2021
Gross loans were $1.43 billion at March 31, 2022, up $114.4
million from December 31, 2021, primarily due to home mortgage loan
purchases.
$81.6 million of home mortgage loans were purchased from third
party mortgage originators, compared to $48.9 million in the fourth
quarter of 2021. New loan originations and loan payoffs were $121.9
million and $64.5 million for the first quarter of 2022, compared
with $168.2 million and $76.7 million for the fourth quarter of
2021, respectively. Of the PPP loans, $18.2 million in principal
amount has been forgiven under the program, compared to a $29.9
million of PPP loans forgiven in the fourth quarter of 2021.
First Quarter 2022 vs. First Quarter
2021
Gross loans were $1.43 billion at March 31, 2022, up $272.5
million from March 31, 2021, primarily due to the Hana loan
purchase, home mortgage loan purchases, and warehouse credit
lines.
The following table presents the composition of gross loans by
interest rate type accompanied with the weighted average
contractual rates as of the periods indicated:
($ in thousands)
As of
1Q22
4Q21
1Q21
%
Rate
%
Rate
%
Rate
Fixed rate
33.3 %
4.11 %
31.5 %
4.12 %
37.3 %
3.83 %
Hybrid rate
25.6
4.30
22.8
4.45
21.9
4.84
Variable rate
41.1
5.09
45.7
4.94
40.8
4.43
Gross loans
100.0 %
4.56 %
100.0 %
4.57 %
100.0 %
4.30 %
The following table presents the maturity of gross loans by
interest rate type accompanied with the weighted average
contractual rates for the periods indicated:
($ in thousands)
As of March 31, 2022
Within One Year
One Year Through Five
Years
After Five Years
Total
Amount
Rate
Amount
Rate
Amount
Rate
Amount
Rate
Fixed rate
$
24,040
4.18
%
$
299,952
4.18
%
$
150,671
3.98
%
$
474,663
4.11
%
Hybrid rate
26,469
3.29
43,409
5.29
296,224
4.25
366,102
4.30
Variable rate
124,934
4.18
165,770
4.19
296,941
5.97
587,645
5.09
Gross loans
$
175,443
4.05
%
$
509,131
4.28
%
$
743,836
4.88
%
$
1,428,410
4.56
%
Deposits
($ in thousands)
As of
% Change 1Q22 vs.
1Q22
4Q21
1Q21
Amount
%
Amount
%
Amount
%
4Q21
1Q21
Noninterest-bearing deposits
$ 848,531
50.8 %
$ 774,754
50.5 %
$ 571,985
44.5 %
9.5 %
48.3 %
Money market deposits and others
456,890
27.3 %
380,226
24.8
354,148
27.6 %
20.2
29.0
Time deposits
366,582
21.9 %
379,086
24.7
359,257
27.9 %
(3.3)
2.0
Total deposits
$ 1,672,003
100.0 %
$ 1,534,066
100.0 %
$ 1,285,390
100.0 %
9.0 %
30.1 %
First Quarter 2022 vs. Fourth Quarter
2021
Total deposits were $1.67 billion at March 31, 2022, up $137.9
million from December 31, 2021, primarily driven by growth in
noninterest-bearing and money market deposits, partially offset by
time deposits. Noninterest-bearing deposits reached a record $848.5
million or 50.8% of total deposits as of March 31, 2022, an
increase from $774.8 million or 50.5% of total deposits as of
December 31, 2021. The growth in noninterest-bearing deposits was
primarily due to addition of new customers from our Specialty
Deposit Center, which was added during the fourth quarter of
2021.
First Quarter 2022 vs. First Quarter
2021
Total deposits were $1.67 billion at March 31, 2022, an increase
of $386.6 million from March 31, 2021, primarily driven by growth
in noninterest-bearing deposits. Noninterest-bearing deposits were
$848.5 million or 50.8% of total deposits, an increase from $572.0
million or 44.5% of total deposits as of March 31, 2021. The growth
in noninterest-bearing deposits was driven by continued customer
preferences for liquidity given the sustained economic uncertainty
and deposit growth from our Specialty Deposit Center.
The following table sets forth the maturity of time deposits as
of March 31, 2022:
As of March 31, 2022
($ 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)
$
92,471
$
41,573
$
30,629
$
27,137
$
1,039
$
192,849
Time deposits ($250,000 or less)
64,166
42,975
31,826
28,209
6,557
173,733
Total time deposits
$
156,637
$
84,548
$
62,455
$
55,346
$
7,596
$
366,582
Weighted average rate
0.37
%
0.51
%
0.45
%
0.43
%
1.37
%
0.45
%
Capital and Cash Dividend
Basel III
OP Bancorp
Open Bank
Well
Capitalized
Ratio
Minimum
Capital Ratio+
Conservation
Buffer (1)
Risk-Based Capital Ratios:
Total risk-based capital ratio
13.29 %
13.12 %
10.00 %
10.50 %
Tier 1 risk-based capital ratio
12.11 %
11.94 %
8.00 %
8.50 %
Common equity tier 1 ratio
12.11 %
11.94 %
6.50 %
7.00 %
Leverage ratio
9.80 %
9.66 %
5.00 %
4.00 %
- 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.
- The capital requirements are only applicable to the Bank, and
the Company's ratios are included for comparison purpose.
($ in thousands)
Basel III
% Change 1Q22 vs.
1Q22
4Q21
1Q21
4Q21
1Q21
Risk-Based Capital Ratios:
Total risk-based capital ratio
13.29 %
13.66 %
15.04 %
(0.37) %
(1.75) %
Tier 1 risk-based capital ratio
12.11 %
12.42 %
13.79 %
(0.31) %
(1.68) %
Common equity tier 1 ratio
12.11 %
12.42 %
13.79 %
(0.31) %
(1.68) %
Leverage ratio
9.80 %
9.58 %
10.38 %
0.22 %
(0.58) %
Risk-weighted Assets
$ 1,427,569
$ 1,335,889
$ 1,061,131
6.86 %
34.53 %
Capital ratios remained strong during the quarter. Our CET1 and
total risk-based capital ratios were 12.11% and 13.29% as of March
31, 2022, respectively, a decrease from a year ago due to
year-over-year asset growth.
The Company’s Board of Directors has declared a quarterly cash
dividend of $0.10 per share of its common stock. The cash dividend
is payable on or about May 26, 2022 to all shareholders of record
as of the close of business on May 12, 2022.
The Company did not repurchase any shares during the first
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 $8.58 per share through March 31, 2022.
Asset Quality
($ in thousands)
As of and For the Three Months
Ended
% Change 1Q22 vs.
1Q22
4Q21
1Q21
4Q21
1Q21
Nonperforming loans (1)
$
2,806
$
3,200
$
1,148
(12.3
) %
144.4
%
OREO
—
—
—
—
—
Total nonperforming assets
$
2,806
$
3,200
$
1,148
(12.3
) %
144.4
%
Nonperforming loans to gross loans
0.20
%
0.24
%
0.10
%
(0.04
) %
0.10
%
Nonperforming assets to total assets
0.15
%
0.19
%
0.08
%
(0.04
) %
0.07
%
Criticized (2) Loan:
Special mention loans
$
—
$
—
$
530
—
%
(100.0
) %
Classified loans (3)
3,848
4,039
6,586
(4.7
)
(41.6
)
Total criticized loans
$
3,848
$
4,039
$
7,116
(4.7
) %
(45.9
) %
Criticized (2) loans to gross loans
0.27
%
0.31
%
0.62
%
(0.04
) %
(0.35
) %
Classified loans (3) to gross loans
0.27
%
0.31
%
0.57
%
(0.04
) %
(0.30
) %
Allowance for loan losses, beginning
$
16,123
$
14,134
$
15,352
14.1
%
5.0
%
Provision for (reversal of) loan losses
(4)
546
2,157
(16
)
(74.7
)
(3512.5
)
Gross charge-offs
(14
)
(168
)
—
(91.7
)
—
Gross recoveries
17
—
3
—
466.7
Allowance for loan losses, ending (5)
$
16,672
$
16,123
$
15,339
3.4
%
8.7
%
Allowance for loan losses ratios:
As a % of gross loans
1.17
%
1.23
%
1.33
%
(0.06
) %
(0.16
) %
As an adjusted of gross loans (6)
1.24
%
1.36
%
1.59
%
(0.12
) %
(0.35
) %
As a % of nonperforming loans
594
%
503
%
1,337
%
91
%
(743
) %
As a % of nonperforming assets
594
%
503
%
1,337
%
91
%
(743
) %
Net (recoveries) charge-offs to average
gross loans
0.00
%
0.05
%
0.00
%
(0.05
) %
0.00
%
- Includes the guaranteed portion of SBA loans totaling $0.9
million as of March 31, 2022.
- Includes special mention, substandard, doubtful and loss
categories.
- Includes substandard, doubtful and loss categories.
- Excludes (reversal of) provision for uncollectible accrued
interest receivable of $(205) thousand, $(259) thousand and $636
thousand for the three months ended March 31, 2022, December 31,
2021, and March 31, 2021, respectively.
- Excludes allowance for uncollectible accrued interest
receivable of $205 thousand and $1.3 million as of December 31,
2021 and March 31, 2021, respectively.
- 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 1.24%. We
expect economic metrics to remain relatively strong over the next
year, which bodes well for growth.: however, we remain vigilant
given potential impacts on our customers from supply chain and
labor constraints as well as COVID variants.
- Allowance for loan losses increased $1.3 million to $16.7
million from a year ago. Excluding the impacts of the purchased
Hana loans, PPP loans, and the allowance for uncollectible accrued
interest receivable, adjusted allowance to gross loans ratio was
1.24% as of March 31, 2022.
- Criticized loans decreased by $3.3 million or 45.9% from a year
ago, and the criticized loans to gross loans ratio improved by 35
basis points, primarily due to a $3.8 million payoff in one C&I
relationship. Criticized loans are generally consistent with the
Special Mention, Substandard, Doubtful and Loss categories defined
by regulatory authorities.
- Nonperforming assets increased $1.7 million to $2.8 million, or
0.15% of total assets from a year ago. The increase in
nonperforming assets was primarily due to SBA loans that were
placed on nonaccrual in 2021. As of March 31, 2022, $899 thousand
of nonaccrual loans was the guaranteed portion of SBA loans that
are in liquidation. The Company did not have OREO as of March 31,
2022 or 2021.
- Net recoveries were $3 thousand or 0.00% of average loans in
the first quarter of 2022. In comparison, there were $3 thousand
net recoveries in the first quarter of 2021.
COVID-19 Pandemic Update
Total outstanding balance of loans remaining in deferment status
as of March 31, 2022, represented 0.3% of the total loan
portfolio.
Since the PPP’s inception through March 31, 2022, we have funded
$154.5 million, and $137.0 million of principal forgiveness has
been provided on qualifying PPP loans.
Reconciliation of GAAP to Non-GAAP Financial Measures
In addition to GAAP measures, management uses certain non-GAAP
financial measures to provide supplemental information regarding
the Company’s performance.
Pre-provision net revenue removes provision for loan losses and
income tax expense. Management believes that this non-GAAP measure,
when taken together with the corresponding GAAP financial measures
(as applicable), provides meaningful supplemental information
regarding our performance. This non-GAAP financial measure also
facilitates a comparison of our performance to prior periods.
($ in thousands)
For the Three Months
Ended
1Q22
4Q21
1Q21
Interest income
$
17,944
$
17,822
$
13,632
Interest expense
654
726
877
Net interest income
17,290
17,096
12,755
Noninterest income
4,216
7,289
2,966
Noninterest expense
9,662
9,591
7,966
Pre-provision net revenue
(a)
$
11,844
$
14,794
$
7,755
Reconciliation to net income:
Provision for loan losses
(b)
$
341
$
1,898
$
620
Income tax expense
(c)
3,351
3,762
2,058
Net income
(a)+(b) +(c)
$
8,152
$
9,134
$
5,077
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 $8.9 million discount.
As a result, the fair value discount on these loans is being
accreted into interest income over the expected life of the loans
using the effective yield method. Adjusted loan yield and net
interest margin for the three months ended March 31, 2022 and
December 31, 2021 excluded the impacts of contractual interest and
discount accretion of the purchased loans as management does not
consider purchasing loan portfolios to be normal or recurring
transactions. Management believes that presenting the adjusted
average loan yield and net interest margin provide comparability to
prior periods and these non-GAAP financial measures provide
supplemental information regarding the Company’s performance.
($ in thousands)
For the Three Months
Ended
1Q22
4Q21
1Q21
Yield on Average Loans
Interest income on loans
$
17,257
$
17,271
$
13,284
Less: interest income on purchased
loans
1,755
1,863
—
Adjusted interest income on loans
(a)
$
15,502
$
15,408
$
13,284
Average loans
$
1,444,054
$
1,343,414
$
1,165,150
Less: Average purchased loans
74,631
79,625
—
Adjusted average loans
(b)
$
1,369,423
$
1,263,789
$
1,165,150
Average loan yield (1)
4.84
%
5.10
%
4.62
%
Effect on average loan yield (1)
0.26
%
0.26
%
—
%
Adjusted average loan yield (1)
(a)/(b)
4.58
%
4.84
%
4.62
%
Net Interest Margin
Net interest income
$
17,290
$
17,096
$
12,755
Less: interest income on purchased
loans
1,755
1,863
—
Adjusted net interest income
(c)
$
15,535
$
15,233
$
12,755
Average interest-earning assets
$
1,698,799
$
1,668,865
$
1,357,450
Less: Average purchased loans
74,631
79,625
—
Adjusted average interest-earning
assets
(d)
$
1,624,168
$
1,589,240
$
1,357,450
Net interest margin (1)
4.12
%
4.07
%
3.80
%
Effect on net interest margin (1)
0.25
%
0.26
%
—
%
Adjusted net interest margin (1)
(c)/(d)
3.87
%
3.81
%
3.80
%
- Annualized.
Adjusted allowance to gross loans ratio removes the impacts of
purchased 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
1Q22
4Q21
1Q21
Gross loans
$
1,428,410
$
1,314,019
$
1,155,872
Less: Purchased loans
(71,377
)
(77,170
)
—
PPP loans (1)
(21,016
)
(38,918
)
(113,551
)
Adjusted gross loans
(a)
1,336,017
$
1,197,931
$
1,042,321
Accrued interest receivable on loans
$
4,494
$
4,231
$
2,839
Less: Accrued interest receivable on
purchased loans
(295
)
(340
)
—
Accrued interest receivable on PPP loans
(2)
(229
)
(340
)
(481
)
Add: Allowance on accrued interest
receivable
—
205
1,279
Adjusted accrued interest receivable on
loans
(b)
$
3,970
$
3,756
$
3,637
Adjusted gross loans and accrued interest
receivable
(a)+(b) =(c)
$
1,339,987
$
1,201,687
$
1,045,958
Allowance for loan losses
$
16,672
$
16,123
$
15,339
Add: Allowance on accrued interest
receivable
—
205
1,279
Adjusted Allowance
(d)
$
16,672
$
16,328
$
16,618
Adjusted allowance to gross loans
ratio
(d)/(c)
1.24
%
1.36
%
1.59
%
- Excludes purchased PPP loans of $1.0 million and $1.7 million
as of March 31, 2022 and December 31, 2021, respectively.
- Excludes purchased accrued interest receivable on PPP loans of
$11 thousand and $15 thousand as of March 31, 2022 and December 31,
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 Atlanta, Georgia, Aurora, Colorado, and Lynnwood and Seattle,
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: the uncertainties
related to the coronavirus pandemic including, but not limited to,
the potential adverse effect of the pandemic on the economy, our
employees and customers, and our financial performance; the impact
of the federal CARES Act and the significant additional lending
activities undertaken by the Company in connection with the Small
Business Administration’s Paycheck Protection Program enacted
thereunder, including risks to the Company with respect to the
uncertain application by the Small Business Administration of new
borrower and loan eligibility, forgiveness and audit criteria;
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 1Q22 vs.
1Q22
4Q21
1Q21
4Q21
1Q21
Assets
Cash and due from banks
$
18,206
$
11,283
$
20,386
61.4
%
(10.7
) %
Interest-bearing deposits in other
banks
111,770
104,176
107,044
7.3
4.4
Cash and cash equivalents
129,976
115,459
127,430
12.6
2.0
Securities available for sale, at fair
value
161,182
150,444
102,413
7.1
57.4
Other investments
10,836
10,999
10,047
(1.5
)
7.9
Loans held for sale
86,243
89,428
28,575
(3.6
)
201.8
Real estate loans
730,841
701,450
662,445
4.2
10.3
SBA loans (1)
253,064
275,858
263,185
(8.3
)
(3.8
)
C&I loans
176,934
162,543
103,883
8.9
70.3
Home mortgage loans
266,465
173,303
125,285
53.8
112.7
Consumer & other loans
1,106
865
1,074
27.9
3.0
Gross loans, net of unearned income
1,428,410
1,314,019
1,155,872
8.7
23.6
Allowance for loan losses
(16,672
)
(16,123
)
(15,339
)
3.4
(8.7
)
Net loans receivable
1,411,738
1,297,896
1,140,533
8.8
23.8
Premises and equipment, net
4,570
4,355
4,368
4.9
4.6
Accrued interest receivable, net
4,893
4,579
3,096
6.9
58.0
Servicing assets
12,341
12,720
7,492
(3.0
)
64.7
Company owned life insurance
11,197
11,134
10,941
0.6
2.3
Deferred tax assets
10,882
8,409
5,391
29.4
101.9
Operating right-of-use assets
8,471
8,905
6,443
(4.9
)
31.5
Other assets
11,616
12,363
8,605
(6.0
)
35.0
Total assets
$
1,863,945
$
1,726,691
$
1,455,334
7.9
%
28.1
%
Liabilities and Shareholders'
Equity
Liabilities
Noninterest bearing
$
848,531
$
774,754
$
571,985
9.5
%
48.3
%
Money market and others
456,890
380,226
354,148
20.2
29.0
Time deposits greater than $250,000
192,849
207,288
190,960
(7.0
)
1.0
Other time deposits
173,733
171,798
168,297
1.1
3.2
Total deposits
1,672,003
1,534,066
1,285,390
9.0
30.1
Federal Home Loan Bank advances
—
—
5,000
—
(100.0
)
Accrued interest payable
548
558
622
(1.8
)
(11.9
)
Operating lease liabilities
9,839
10,307
8,016
(4.5
)
22.7
Other liabilities
15,564
16,538
9,313
(5.9
)
67.1
Total liabilities
1,697,954
1,561,469
1,308,341
8.7
29.8
Shareholders’ equity
Common stock
78,718
78,718
78,654
—
0.1
Additional paid-in capital
8,860
8,645
8,652
2.5
2.4
Retained earnings
85,694
79,056
59,373
8.4
44.3
Accumulated other comprehensive (loss)
income
(7,281
)
(1,197
)
314
508.3
(2418.8
)
Total shareholders’ equity
165,991
165,222
146,993
0.5
12.9
Total liabilities and shareholders'
equity
$
1,863,945
$
1,726,691
$
1,455,334
7.9
%
28.1
%
- Includes SBA Paycheck Protection Program (“PPP”) loans of $22.1
million, $40.6 million and $113.6 million as of March 31, 2022,
December 31, 2021 and March 31, 2021, respectively.
Consolidated Statements of Income (unaudited)
($ in thousands, except share and per
share data)
For the Three Months
Ended
% Change 1Q22 vs.
1Q22
4Q21
1Q21
4Q21
1Q21
Interest income
Interest and fees on loans
$
17,257
$
17,271
$
13,284
(0.1
) %
29.9
%
Interest on securities available for
sale
530
362
236
46.4
124.6
Other interest income
157
189
112
(16.9
)
40.2
Total interest income
17,944
17,822
13,632
0.7
31.6
Interest expense
Interest on deposits
654
726
877
(9.9
)
(25.4
)
Total interest expense
654
726
877
(9.9
)
(25.4
)
Net interest income
17,290
17,096
12,755
1.1
35.6
Provision for loan losses
341
1,898
620
(82.0
)
(45.0
)
Net interest income after provision for
loan losses
16,949
15,198
12,135
11.5
39.7
Noninterest income
Service charges on deposits
388
405
355
(4.2
)
9.3
Loan servicing fees, net of
amortization
447
521
531
(14.2
)
(15.8
)
Gain on sale of loans
3,238
6,033
1,882
(46.3
)
72.1
Other income
143
330
198
(56.7
)
(27.8
)
Total noninterest income
4,216
7,289
2,966
(42.2
)
42.1
Noninterest expense
Salaries and employee benefits
5,657
5,560
4,662
1.7
21.3
Occupancy and equipment
1,378
1,418
1,235
(2.8
)
11.6
Data processing and communication
493
637
448
(22.6
)
10.0
Professional fees
324
267
314
21.3
3.2
FDIC insurance and regulatory
assessments
207
182
132
13.7
56.8
Promotion and advertising
189
156
177
21.2
6.8
Directors’ fees
177
166
116
6.6
52.6
Foundation donation and other
contributions
815
901
507
(9.5
)
60.7
Other expenses
422
304
375
38.8
12.5
Total noninterest expense
9,662
9,591
7,966
0.7
21.3
Income before income tax expense
11,503
12,896
7,135
(10.8
)
61.2
Income tax expense
3,351
3,762
2,058
(10.9
)
62.8
Net income
$
8,152
$
9,134
$
5,077
(10.8
) %
60.6
%
Book value per share
$
10.97
$
10.92
$
9.77
0.5
%
12.3
%
Earnings per share - Basic
$
0.53
$
0.60
$
0.33
(11.7
) %
60.6
%
Earnings per share - Diluted
$
0.53
$
0.59
$
0.33
(10.2
) %
60.6
%
Shares of common stock outstanding
15,137,808
15,137,808
15,037,635
—
%
0.7
%
Weighted Average Shares:
- Basic
15,137,808
15,136,229
15,022,876
—
%
0.8
%
- Diluted
15,242,214
15,227,291
15,069,444
0.1
%
1.1
%
Key Ratios
For the Three Months
Ended
% Change 1Q22 vs.
1Q22
4Q21
1Q21
4Q21
1Q21
Return on average assets (ROA) (1)
1.85 %
2.11 %
1.44 %
(0.3) %
0.4 %
Return on average equity (ROE) (1)
19.54 %
22.68 %
14.02 %
(3.1) %
5.5 %
Net interest margin (1)
4.12 %
4.07 %
3.80 %
0.1 %
0.3 %
Efficiency ratio
44.93 %
39.34 %
50.67 %
5.6 %
(5.7) %
Total risk-based capital ratio (2)
13.29 %
13.66 %
15.04 %
(0.4) %
(1.8) %
Tier 1 risk-based capital ratio (2)
12.11 %
12.42 %
13.79 %
(0.3) %
(1.7) %
Common equity tier 1 ratio (2)
12.11 %
12.42 %
13.79 %
(0.3) %
(1.7) %
Leverage ratio (2)
9.80 %
9.58 %
10.38 %
0.2 %
(0.6) %
- Annualized.
- The Company’s March 31, 2022 regulatory capital ratios are
preliminary.
Asset Quality
($ in thousands)
As of and For the Three Months
Ended
1Q22
4Q21
1Q21
Nonaccrual Loans (1)
$
2,806
$
3,000
$
1,148
Loans 90 days or more past due,
accruing
—
200
—
Accruing restructured loans
—
—
—
Nonperforming loans
2,806
3,200
1,148
Other real estate owned ("OREO")
—
—
—
Nonperforming assets
$
2,806
$
3,200
$
1,148
Criticized loans (2) by loan type:
SBA loans
$
2,544
$
2,688
$
1,684
C&I loans
305
313
4,832
Home mortgage loans
999
1,038
600
Total criticized loans (2)
$
3,848
$
4,039
$
7,116
Nonperforming assets/total assets
0.15
%
0.19
%
0.08
%
Nonperforming assets / gross loans plus
OREO
0.20
%
0.24
%
0.10
%
Nonperforming loans / gross loans
0.20
%
0.24
%
0.10
%
Allowance for loan losses / nonperforming
loans
594
%
503
%
1337
%
Allowance for loan losses / nonperforming
assets
594
%
503
%
1337
%
Allowance for loan losses / gross
loans
1.17
%
1.23
%
1.33
%
Criticized loans (2) / gross loans
0.27
%
0.31
%
0.62
%
Classified loans / gross loans
0.27
%
0.31
%
0.57
%
Net (recoveries) charge-offs
$
(3
)
$
168
$
(3
)
Net (recoveries) charge-offs to average
gross loans (3)
(0.00
) %
0.05
%
(0.00
) %
- Includes the guaranteed portion of SBA loans that are in
liquidation totaling $899 thousand as of March 31, 2022.
- Consists of special mention, substandard, doubtful and loss
categories.
- Annualized.
($ in thousands)
1Q22
4Q21
1Q21
Accruing delinquent loans 30-89 days past
due
30-59 days
$
201
$
76
$
—
60-89 days
—
336
—
Total (1)
$
201
$
412
$
—
- Includes the guaranteed portion of PPP loans totaling $9
thousand as of March 31, 2022.
Average Balance Sheet, Interest and Yield/Rate
Analysis
For the Three Months
Ended
1Q22
4Q21
1Q21
($ 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
$
86,875
$
42
0.19
%
$
192,302
$
73
0.15
%
$
89,931
$
23
0.19
%
Federal funds sold and other
investments
10,957
115
4.19
11,012
116
4.23
10,087
89
3.53
Available-for-sale debt securities, at
fair value
156,913
530
1.35
122,137
362
1.19
92,951
236
1.02
Real estate loans
710,993
7,802
4.45
685,394
7,774
4.50
653,498
7,466
4.63
SBA loans
358,725
5,834
6.60
400,059
6,829
6.77
268,440
3,280
4.95
C&I loans
156,355
1,536
3.98
133,104
1,334
3.98
116,327
1,072
3.74
Home mortgage loans
217,103
2,074
3.82
123,822
1,320
4.27
125,698
1,451
4.62
Consumer & other loans
878
11
4.88
1,035
14
5.21
1,187
15
5.12
Loans (2)
1,444,054
17,257
4.84
1,343,414
17,271
5.10
1,165,150
13,284
4.62
Total interest-earning assets
1,698,799
17,944
4.28
1,668,865
17,822
4.24
1,358,119
13,632
4.07
Noninterest-earning assets
63,016
62,996
51,707
Total assets
$
1,761,815
$
1,731,861
$
1,409,826
Interest-bearing liabilities:
Money market deposits and others
$
412,295
$
251
0.25
%
$
378,849
$
283
0.30
%
$
336,796
$
270
0.33
%
Time deposits
374,620
403
0.44
401,938
443
0.44
361,803
607
0.68
Total interest-bearing deposits
786,915
654
0.34
780,787
726
0.37
698,599
877
0.51
Borrowings
—
—
—
4
—
—
5,000
—
—
Total interest-bearing liabilities
786,915
654
0.34
780,791
726
0.37
703,599
877
0.51
Noninterest-bearing liabilities:
Noninterest-bearing deposits
783,461
765,012
544,492
Other noninterest-bearing liabilities
24,599
24,994
16,865
Total noninterest-bearing liabilities
808,060
790,006
561,357
Shareholders’ equity
166,840
161,064
144,870
Total liabilities and shareholders’
equity
$
1,761,815
$
1,731,861
$
1,409,826
Net interest income / interest rate
spreads
$
17,290
3.94
%
$
17,096
3.87
%
$
12,755
3.56
%
Net interest margin
4.12
%
4.07
%
3.80
%
Cost of deposits & cost of funds:
Total deposits / cost of deposits
$
1,570,376
$
654
0.17
%
$
1,545,799
$
726
0.19
%
1,243,091
$
877
0.29
%
Total funding liabilities / cost of
funds
$
1,570,376
$
654
0.17
%
$
1,545,803
$
726
0.19
%
1,248,091
$
877
0.28
%
- Annualized.
- Includes loans held for sale.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220428006237/en/
Investor Relations OP Bancorp Christine Oh EVP & CFO
213.892.1192 Christine.oh@myopenbank.com
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