We continue our earnings season coverage for regional banks here in this Q4 earnings season with results out of OP Bancorp ( OPBK ). As a reminder , this bank is a little unique. This is becauseThe Pioneer Of Seeking Alpha's BAD BEAT Investing, Quad 7 Capital is a team of 7 analysts with a wide range of experience sharing investment opportunities for nearly 12 years. They are best known for their February 2020 call to sell everything & go short, & have been on average 95% long 5% short since May 2020. The b ...

We continue our earnings season coverage for regional banks here in this Q4 earnings season with results out of OP Bancorp ( OPBK ). As a reminder , this bank is a little unique. This is becauseThe Pioneer Of Seeking Alpha's BAD BEAT Investing, Quad 7 Capital is a team of 7 analysts with a wide range of experience sharing investment opportunities for nearly 12 years. They are best known for their February 2020 call to sell everything & go short, & have been on average 95% long 5% short since May 2020. The b ...

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Financial Performance - Net income for Q4 2025 was $7.1 million, a 5% increase from Q3 2025's $6.7 million and a significant rise from Q4 2024's $5.0 million[2]. - Diluted EPS increased to $0.47 in Q4 2025, up $0.02 from Q3 2025's $0.45 and up from $0.33 in Q4 2024[2]. - For the year 2025, net income was $25,655,000, a 22% increase from 2024[51]. - Total interest income for Q4 2025 increased to $39,282,000, a 2% increase from Q3 2025 and a 12% increase from Q4 2024[49]. - Noninterest income for Q4 2025 was $3,418,000, down 17% from Q3 2025 and 23% from Q4 2024[49]. - Total noninterest expense for Q4 2025 rose to $14,293,000, a 5% increase from Q3 2025 and a 9% increase from Q4 2024[49]. - The efficiency ratio improved to 58.87% in Q4 2025, compared to 55.68% in Q3 2025 and 61.52% in Q4 2024[2]. - Return on average assets (ROA) improved to 1.07% in Q4 2025, up from 1.04% in Q3 2025 and 0.84% in Q4 2024[2]. Loan and Deposit Growth - Average loans increased by 3% to $2.204 billion in Q4 2025, compared to $2.132 billion in Q3 2025 and $1.948 billion in Q4 2024[2]. - Average deposits grew by 2% to $2.265 billion in Q4 2025, up from $2.230 billion in Q3 2025 and $2.030 billion in Q4 2024[2]. - Total deposits reached $2,280,547 thousand, a 12% increase from $2,027,285 thousand in Q4 2024, driven by a $178.4 million increase in time deposits[35]. - Gross loans increased to $2,193,669 thousand, a 2% increase from Q3 2025 and a 12% increase from Q4 2024[25]. Credit Quality - Provision for credit losses decreased by 61% to $463 thousand in Q4 2025, down from $1.175 million in Q3 2025 and $1.547 million in Q4 2024[2]. - Nonperforming loans rose to $14,071 thousand, a 14% increase from 3Q2025 and an 80% increase from 4Q2024, representing 0.64% of gross loans[29]. - Allowance for credit losses on loans increased to $27,975 thousand in 4Q2025, up $676 thousand from 3Q2025 and $3,179 thousand from 4Q2024[28]. - Criticized loans rose to $32,060 thousand, a 14.2% increase from 3Q2025 and a 63.8% increase from 4Q2024[29]. Capital and Liquidity - Common equity tier 1 capital (CET1) remained robust at 10.93% in Q4 2025, compared to 10.92% in Q3 2025 and 11.35% in Q4 2024[2]. - Total capital ratio stood at 13.32%, exceeding the minimum capital requirement of 10.00%[41]. - The company maintained a liquidity ratio of 49% for liquid assets and available borrowings to total deposits[38]. - The company issued a $25 million subordinated note, qualifying as Tier 2 capital at the consolidated level[40]. Operational Highlights - The company operates twelve full-service branches and five loan production offices across California, Texas, and Nevada, focusing on small- and medium-sized businesses[44]. - The company declared a quarterly cash dividend of $0.12 per share, payable on February 19, 2026[39]. - The bank sold $28.5 million in SBA loans at an average premium rate of 6.98%, compared to $36.8 million sold at an average premium rate of 6.71% in the prior period[18].

LOS ANGELES--(BUSINESS WIRE)--OP Bancorp (the "Company†) (NASDAQ: OPBK), parent company of Open Bank, today reported: As of and For the Quarter Fourth Quarter Highlights ($ in thousands, except per share data)  4Q2025  3Q2025  4Q2024  Comparisons reflect 4Q25 vs. 3Q25 Income Statement: Income Statement Net interest income $ 20,863   $ 20,346   $ 16,929   Net interest income increased 3%. Revenue remained relatively stable, and net interest margin. ...

LOS ANGELES--(BUSINESS WIRE)--OP Bancorp (the "Company†) (NASDAQ: OPBK), the holding company of Open Bank (the "Bank†), announced today that its Board of Directors declared a quarterly cash dividend of $0.12 per share of its common stock. The dividend is payable on or about February 19, 2026 to shareholders of record as of the close of business on February 5, 2026. About OP Bancorp OP Bancorp, the holding company for Open Bank (the "Bank†), is a California corporation whose common stock is quot. ...

Core Insights - Three stocks are highlighted with strong income characteristics and a buy rank as of November 19th Group 1: First Hawaiian (FHB) - First Hawaiian offers a range of banking services including deposit products, lending services, and wealth management [1] - The Zacks Consensus Estimate for its current year earnings has increased by 4.9% over the last 60 days [1] - The company has a dividend yield of 4.5%, surpassing the industry average of 3.1% [2] Group 2: OP Bancorp (OPBK) - OP Bancorp provides commercial banking services to both retail and institutional customers [2] - The Zacks Consensus Estimate for its current year earnings has increased by 4.7% over the last 60 days [2] - The company has a dividend yield of 3.8%, compared to the industry average of 1.2% [2] Group 3: Jackson Financial (JXN) - Jackson Financial is a U.S. retirement services provider with a diverse portfolio of differentiated products [3] - The Zacks Consensus Estimate for its current year earnings has increased by 1.7% over the last 60 days [3] - The company has a dividend yield of 3.5%, which is higher than the industry average of 1.6% [3]

Core Viewpoint - OP Bancorp has successfully completed a private placement of $25 million in subordinated notes, indicating a strategic move to enhance its capital structure and financial flexibility [1]. Group 1: Financial Details - The private placement involved fixed-to-floating rate subordinated notes due in 2035, which may attract investors looking for stable returns [1]. - The issuance was conducted without registration under the Securities Act of 1933, suggesting a targeted approach to capital raising [1]. Group 2: Strategic Implications - This capital raise could provide OP Bancorp with additional resources to support growth initiatives and strengthen its balance sheet [1]. - The completion of this private placement reflects the company's ongoing efforts to optimize its funding strategy in a competitive banking environment [1].

Financial Performance - Net income for Q3 2025 was $6.7 million, up $1.3 million, or 23%, compared to $5.4 million in Q3 2024[116] - Net interest income for Q3 2025 increased to $20.3 million, up $3.8 million, or 23%, from the same quarter last year[116] - The efficiency ratio for Q3 2025 improved to 55.68%, a decrease of 563 basis points from the same period in 2024[116] - Return on average assets (ROA) for Q3 2025 was 1.04%, up from 0.94% in Q3 2024[116] - Return on average equity (ROE) for Q3 2025 was 12.36%, compared to 10.95% in Q3 2024[116] Asset and Loan Growth - Total assets reached $2.61 billion as of September 30, 2025, up $248.2 million, or 10%, from December 31, 2024[116] - Gross loans were $2.15 billion, up $194.4 million, or 10%, from December 31, 2024, primarily driven by growth in commercial real estate and home mortgage loans[116] - Total deposits were $2.27 billion, up $246.1 million, or 12%, from December 31, 2024, reflecting growth in time and money market deposits[116] - Average loan balances grew, contributing to the increase in interest income, despite a decline in loan yields due to repricing at lower interest rates[128] - The average gross loans increased to $2,107,081 thousand for the three months ended September 30, 2025, compared to $1,891,157 thousand for the same period in 2024[176] Interest Income and Margin - Net interest income for Q3 2025 increased by 23% year-over-year, driven by a $3.1 million (10%) increase in interest income on loans[128] - Net interest margin increased by 31 basis points, reflecting a 62 basis point increase in net interest spread[130] - The cost of deposits for Q3 2025 was 3.10%, down from 3.57% in the previous year[124] - The average interest rate on loans for Q3 2025 was 6.52%, compared to 6.66% in Q3 2024[124] Credit Losses and Nonperforming Loans - The provision for credit losses for Q3 2025 was $1.175 million, up from $448,000 in Q3 2024[116] - Nonperforming loans to gross loans ratio increased to 0.57% from 0.40% year-over-year[116] - Provision for credit losses for the first nine months of 2025 was $3.1 million, up from $1.2 million in the same period last year, reflecting higher qualitative reserves and loan growth[137] - Nonperforming loans rose by $4.5 million, or 57%, to $12.3 million as of September 30, 2025, primarily due to reclassifications of $3.4 million in SBA—real estate loans[181] Noninterest Income and Expenses - Total noninterest income for the first nine months of 2025 increased by $904 thousand, or 8%, primarily due to higher loan servicing fees and service charges on deposits[141] - Salaries and employee benefits for the first nine months of 2025 increased by $3.3 million, or 14%, driven by staffing growth and merit-based salary adjustments[150] - Total noninterest expense for the first nine months of 2025 rose by $4.4 million, or 12%, primarily due to higher salaries and employee benefits[149] Capital and Deposits - The Bank's total capital ratio was 12.06% as of September 30, 2025, exceeding the minimum requirement to be considered "well-capitalized"[197] - CET1 capital to risk-weighted assets was 10.81% for the Bank as of September 30, 2025, above the required minimum of 4.50%[197] - The company had estimated uninsured deposits of $1.13 billion, or 50% of total deposits, as of September 30, 2025[188] - Total deposits grew by 12% to $2,273,417 thousand as of September 30, 2025, from $2,027,285 thousand as of December 31, 2024[187] Interest Rate Risk Management - Interest rate risk is identified as the primary source of market risk for the Company, arising from changes in market interest rates[200] - The company employs a net interest income simulation model to evaluate potential changes in net interest income under various interest rate scenarios, running these simulations at least quarterly[206] - The company assesses interest rate risk by measuring both Earnings at Risk (EAR) and Economic Value of Equity (EVE), with EVE providing a period-end measurement of market value changes[206] - Interest rate risk management involves monitoring loan and deposit flows alongside investment and funding activities to determine the appropriate risk posture[203]

Core Insights - BAD BEAT Investing, led by Quad 7 Capital, is a team of 7 analysts with nearly 12 years of experience in identifying investment opportunities [1] - The firm is recognized for its February 2020 recommendation to sell all positions and go short, maintaining an average position of 95% long and 5% short since May 2020 [1] - The team possesses expertise across various fields including business, policy, economics, mathematics, game theory, and sciences [1] - BAD BEAT Investing focuses on short- and medium-term investments, income generation, special situations, and momentum trades [1] - The company emphasizes educating investors to become proficient traders through a structured playbook, providing in-depth research with clear entry and exit targets [1] Benefits of BAD BEAT Investing - Investors can learn to understand market dynamics and execute well-researched trade ideas weekly [2] - The service includes access to 4 chat rooms and daily summaries of key analyst upgrades and downgrades [2] - Participants can learn basic options trading and utilize extensive trading tools [2]