Core Viewpoint - The article emphasizes the importance of value investing and highlights OP Bancorp (OPBK) as a strong value stock based on various valuation metrics [2][8]. Valuation Metrics - OP Bancorp has a Zacks Rank of 1 (Strong Buy) and an A for Value, indicating strong potential for value investors [4]. - The stock's P/E ratio is 7.79, significantly lower than the industry average of 14.72, suggesting it is undervalued [4]. - OPBK's P/B ratio stands at 1.08, compared to the industry's average P/B of 2.08, further indicating attractive valuation [5]. - The P/S ratio for OPBK is 1.43, while the industry average is 2.24, reinforcing the perception of undervaluation [6]. - The P/CF ratio for OPBK is 8.42, which is favorable compared to the industry's average P/CF of 16.52, highlighting a solid cash outlook [7]. Investment Outlook - The combination of OPBK's strong earnings outlook and favorable valuation metrics suggests that the stock is likely undervalued at the moment, making it an impressive value stock [8].

[OP Bancorp Fourth Quarter 2024 Earnings Report](index=1&type=section&id=OP%20Bancorp%20Fourth%20Quarter%202024%20Earnings%20Report) OP Bancorp's Q4 2024 earnings report details financial performance, balance sheet changes, and capital position [Financial Highlights](index=1&type=section&id=Financial%20Highlights) OP Bancorp's Q4 2024 net income was $5.0 million, marked by increased credit loss provisions and loan growth, while maintaining strong capital Q4 2024 Key Financial Results vs. Q3 2024 | Metric | 4Q2024 | 3Q2024 | | :--- | :--- | :--- | | Net Income | $5.0 million | $5.4 million | | Diluted EPS | $0.33 | $0.36 | | Net Interest Income | $16.9 million | $16.5 million | | Net Interest Margin | 2.96% | 2.95% | | Provision for Credit Losses | $1.5 million | $448 thousand | | Gross Loans | $1.96 billion | $1.93 billion | | Total Deposits | $2.03 billion | $2.06 billion | | Total Assets | $2.37 billion | $2.39 billion | Q4 2024 Key Credit Quality & Capital Metrics vs. Q3 2024 | Metric | 4Q2024 | 3Q2024 | | :--- | :--- | :--- | | Nonperforming loans to gross loans | 0.40% | 0.19% | | Criticized loans to gross loans | 1.00% | 0.85% | | Allowance for credit losses to gross loans | 1.27% | 1.19% | | Common Equity Tier 1 (CET1) ratio | 11.35% | 11.57% | | Book value per common share | $13.83 | $13.75 | - CEO Min Kim highlighted ongoing challenges in increasing customer deposits and lowering deposit costs due to financial market uncertainty[4](index=4&type=chunk) - The bank is prudently managing a slight elevation in classified loans and is monitoring the impact of recent Los Angeles wildfires on its customers[4](index=4&type=chunk) [Results of Operations](index=4&type=section&id=Results%20of%20Operations) Q4 2024 operations showed increased net interest income and noninterest income, offset by higher credit loss provisions and expenses [Net Interest Income and Net Interest Margin](index=4&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin) Net interest income increased QoQ and YoY due to lower deposit interest expense and asset growth, despite a YoY margin decline Net Interest Income and Margin Analysis | Metric | 4Q2024 | 3Q2024 | 4Q2023 | | :--- | :--- | :--- | :--- | | Net Interest Income | $16.9M | $16.5M | $16.2M | | Net Interest Margin | 2.96% | 2.95% | 3.12% | | Yield on Loans | 6.49% | 6.66% | 6.43% | | Cost of Deposits | 3.37% | 3.57% | 3.09% | - QoQ NII increased by **$423 thousand**, mainly because interest expense on deposits fell by **$739 thousand** due to a **25 basis point** decrease in average cost[8](index=8&type=chunk)[11](index=11&type=chunk) - YoY NII increased by **$699 thousand** as a **$2.8 million** rise in loan interest income, driven by a **$160.1 million** increase in average balance, surpassed higher deposit interest expenses[9](index=9&type=chunk)[12](index=12&type=chunk) [Provision for Credit Losses](index=6&type=section&id=Provision%20for%20Credit%20Losses) The company recorded a substantial $1.5 million provision for credit losses in Q4 2024, driven by increased qualitative and specific reserves Provision for Credit Losses Breakdown ($ in thousands) | Component | 4Q2024 | 3Q2024 | 4Q2023 | | :--- | :--- | :--- | :--- | | Provision for credit losses on loans | $1,859 | $234 | $537 | | Provision for (reversal of) credit losses on off-balance sheet exposure | ($312) | $214 | $93 | | **Total provision for credit losses** | **$1,547** | **$448** | **$630** | - The **$1.9 million** provision for credit losses on loans was primarily due to a **$1.5 million** increase in qualitative reserves (related to asset quality metrics and CRE value declines) and an **$810 thousand** increase in specific reserves (for two SBA relationships)[13](index=13&type=chunk)[18](index=18&type=chunk) [Noninterest Income](index=7&type=section&id=Noninterest%20Income) Noninterest income grew to $4.4 million in Q4 2024, driven by higher loan servicing fees and increased gains on loan sales Noninterest Income Breakdown ($ in thousands) | Component | 4Q2024 | 3Q2024 | 4Q2023 | | :--- | :--- | :--- | :--- | | Service charges on deposits | $967 | $889 | $557 | | Loan servicing fees, net | $858 | $693 | $540 | | Gain on sale of loans | $2,197 | $2,088 | $1,996 | | Other income | $395 | $570 | $587 | | **Total noninterest income** | **$4,417** | **$4,240** | **$3,680** | - Gain on sale of loans increased QoQ due to a higher average premium on SBA loan sales (**7.82%** in Q4 vs **7.30%** in Q3), despite a slightly lower sales volume[19](index=19&type=chunk) - Other income decreased primarily due to an increase in unrealized losses on CRA-qualified mutual funds, driven by market interest rate changes[20](index=20&type=chunk) [Noninterest Expense](index=8&type=section&id=Noninterest%20Expense) Noninterest expense rose to $13.1 million in Q4 2024, primarily due to higher salaries, employee benefits, and FDIC insurance assessments Noninterest Expense Breakdown ($ in thousands) | Component | 4Q2024 | 3Q2024 | 4Q2023 | | :--- | :--- | :--- | :--- | | Salaries and employee benefits | $8,277 | $8,031 | $7,646 | | FDIC insurance and regulatory assessments | $529 | $391 | $237 | | Other expenses | $950 | $788 | $694 | | **Total noninterest expense** | **$13,133** | **$12,720** | **$11,983** | - Salaries and benefits increased by **$246 thousand** QoQ due to higher employee incentive accruals, and by **$631 thousand** YoY as employee headcount grew from **222** to **231**[23](index=23&type=chunk)[24](index=24&type=chunk)[27](index=27&type=chunk) - FDIC insurance assessments increased by **$138 thousand** QoQ due to year-end accrual adjustments and by **$292 thousand** YoY due to balance sheet growth and increased reliance on brokered deposits[23](index=23&type=chunk)[24](index=24&type=chunk)[27](index=27&type=chunk) [Income Tax Expense](index=9&type=section&id=Income%20Tax%20Expense) Income tax expense for Q4 2024 was $1.7 million, with a lower effective tax rate of 25.4% due to year-end adjustments Effective Tax Rate Comparison | Period | Income Tax Expense | Effective Tax Rate | | :--- | :--- | :--- | | 4Q2024 | $1.7 million | 25.4% | | 3Q2024 | $2.1 million | 28.3% | | 4Q2023 | $2.1 million | 29.1% | [Financial Condition](index=10&type=section&id=Financial%20Condition) As of Q4 2024, total assets were $2.37 billion, with loan growth and deposit contraction, showing some asset quality deterioration but strong capital [Loans](index=10&type=section&id=Loans) Gross loans increased to $1.96 billion in Q4 2024, driven by new originations, particularly in home mortgages, with C&I loans showing significant YoY growth Gross Loan Portfolio Composition ($ in thousands) | Loan Type | 4Q2024 | 3Q2024 | 4Q2023 | | :--- | :--- | :--- | :--- | | CRE loans | $980,247 | $966,472 | $885,585 | | SBA loans | $253,710 | $252,379 | $239,692 | | C&I loans | $213,097 | $212,476 | $120,970 | | Home mortgage loans | $509,524 | $499,666 | $518,024 | | **Gross loans** | **$1,956,852** | **$1,931,007** | **$1,765,845** | Quarterly Loan Originations ($ in thousands) | Loan Type | 4Q2024 | 3Q2024 | | :--- | :--- | :--- | | CRE loans | $64,827 | $68,525 | | SBA loans | $36,810 | $46,302 | | C&I loans | $7,783 | $27,771 | | Home mortgage loans | $17,937 | $10,105 | | **Gross loan originations** | **$127,357** | **$152,703** | - The loan portfolio's interest rate composition at year-end was **33.2%** fixed rate, **37.0%** hybrid rate, and **29.8%** variable rate[31](index=31&type=chunk) [Allowance for Credit Losses and Asset Quality](index=12&type=section&id=Allowance%20for%20Credit%20Losses%20and%20Asset%20Quality) Asset quality showed stress in Q4 2024 with nonperforming loans doubling to $7.8 million, leading to an increased allowance for credit losses Key Asset Quality Metrics | Metric | 4Q2024 | 3Q2024 | 4Q2023 | | :--- | :--- | :--- | :--- | | Nonperforming loans | $7.8M | $3.6M | $6.1M | | Nonperforming loans to gross loans | 0.40% | 0.19% | 0.34% | | Criticized loans | $19.6M | $16.5M | $13.3M | | Allowance for credit losses to gross loans | 1.27% | 1.19% | 1.25% | | Net charge-offs to average gross loans (annualized) | 0.00% | 0.01% | 0.04% | - The increase in nonperforming loans was mainly driven by three SBA relationships: one hotel property with fire damage and two separate apparel businesses[35](index=35&type=chunk) - The allowance for credit losses on loans increased by **$1.8 million** during the quarter to end at **$24.8 million**[33](index=33&type=chunk) [Deposits](index=14&type=section&id=Deposits) Total deposits decreased to $2.03 billion in Q4 2024, driven by a decline in noninterest-bearing deposits and a shift towards higher-cost time deposits Deposit Composition ($ in thousands) | Deposit Type | 4Q2024 | 3Q2024 | 4Q2023 | | :--- | :--- | :--- | :--- | | Noninterest-bearing deposits | $504,928 | $561,801 | $522,751 | | Money market deposits and others | $329,095 | $343,188 | $399,018 | | Time deposits | $1,193,262 | $1,159,614 | $885,789 | | **Total deposits** | **$2,027,285** | **$2,064,603** | **$1,807,558** | - The decrease in noninterest-bearing deposits was attributed to market expectations on the Federal Reserve's rate trajectory and economic uncertainty[39](index=39&type=chunk) - As of December 31, 2024, **$682.5 million** (**57.2%**) of total time deposits are set to mature within six months[41](index=41&type=chunk) [Other Highlights](index=14&type=section&id=Other%20Highlights) The company maintains strong liquidity and capital positions, with a declared dividend and limited exposure to the Los Angeles wildfires [Liquidity](index=15&type=section&id=Liquidity) The company's liquidity position remains robust, with over $1 billion in liquid assets and available borrowings, covering 51.2% of total deposits Liquidity Position ($ in thousands) | Liquidity Source | 4Q2024 | 3Q2024 | | :--- | :--- | :--- | | Liquid assets | $320,852 | $366,129 | | Total available borrowings | $717,015 | $705,399 | | **Total Liquidity Sources** | **$1,037,867** | **$1,071,528** | | Liquid assets and available borrowings to total deposits | 51.2% | 51.9% | [Capital and Capital Ratios](index=15&type=section&id=Capital%20and%20Capital%20Ratios) The company's capital levels remain well-capitalized, with all ratios exceeding regulatory minimums, and a quarterly cash dividend of $0.12 per share declared OP Bancorp Capital Ratios | Ratio | 4Q2024 | 3Q2024 | Minimum Well Capitalized Ratio | | :--- | :--- | :--- | :--- | | Common equity tier 1 ratio | 11.35% | 11.57% | 6.50% | | Tier 1 risk-based capital ratio | 11.35% | 11.57% | 8.00% | | Total risk-based capital ratio | 12.60% | 12.79% | 10.00% | | Leverage ratio | 9.27% | 9.30% | 5.00% | - A quarterly cash dividend of **$0.12 per share** was declared, payable on or about February 20, 2025[43](index=43&type=chunk) - The company did not repurchase any shares of its common stock during the fourth quarter of 2024[44](index=44&type=chunk) [Los Angeles Wildfires Impact](index=14&type=section&id=Los%20Angeles%20Wildfires%20Impact) The company's exposure to the Los Angeles wildfires is limited, with only a small number of borrowers directly impacted and minimal potential for payment adjustments - Overall exposure from Los Angeles wildfires is limited to **$23.5 million** (**1.3%** of net loans)[37](index=37&type=chunk) - Only three borrowers with a total of **$6.3 million** in outstanding principal were directly impacted, with only **$2.2 million** potentially requiring temporary loan payment adjustments[37](index=37&type=chunk) [Consolidated Financial Statements](index=19&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements provide detailed breakdowns of the company's balance sheet, income statement, key ratios, and asset quality for Q4 and full year 2024 [Consolidated Balance Sheets](index=19&type=section&id=Consolidated%20Balance%20Sheets) As of Q4 2024, total assets were $2.37 billion, with growth in net loans receivable and an increase in total shareholders' equity Consolidated Balance Sheet Highlights ($ in thousands) | Account | 4Q2024 | 3Q2024 | 4Q2023 | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $134,943 | $166,756 | $91,216 | | Net loans receivable | $1,932,056 | $1,908,047 | $1,743,852 | | **Total assets** | **$2,366,013** | **$2,387,980** | **$2,147,730** | | Total deposits | $2,027,285 | $2,064,603 | $1,807,558 | | **Total liabilities** | **$2,161,020** | **$2,184,377** | **$1,955,104** | | **Total shareholders' equity** | **$204,993** | **$203,603** | **$192,626** | [Consolidated Statements of Income](index=20&type=section&id=Consolidated%20Statements%20of%20Income) Q4 2024 net income was $5.0 million, while full-year 2024 net income decreased to $21.1 million due to lower net interest income and higher credit loss provisions Quarterly Income Statement Highlights ($ in thousands) | Account | 4Q2024 | 3Q2024 | 4Q2023 | | :--- | :--- | :--- | :--- | | Net interest income | $16,929 | $16,506 | $16,230 | | Provision for credit losses | $1,547 | $448 | $630 | | Noninterest income | $4,417 | $4,240 | $3,680 | | Noninterest expense | $13,133 | $12,720 | $11,983 | | **Net income** | **$4,971** | **$5,436** | **$5,172** | Annual Income Statement Highlights ($ in thousands) | Account | Year 2024 | Year 2023 | % Change | | :--- | :--- | :--- | :--- | | Net interest income | $65,608 | $68,687 | (4.5)% | | Provision for credit losses | $2,757 | $1,651 | 67.0% | | Noninterest income | $16,427 | $14,181 | 15.8% | | Noninterest expense | $50,199 | $47,726 | 5.2% | | **Net income** | **$21,069** | **$23,918** | (11.9)% | [Key Ratios](index=22&type=section&id=Key%20Ratios) Key profitability ratios, including ROA and ROE, declined in Q4 and full year 2024, reflecting margin pressure and increased provisions, while capital ratios remained strong Quarterly Performance Ratios | Ratio | 4Q2024 | 3Q2024 | 4Q2023 | | :--- | :--- | :--- | :--- | | Return on average assets (ROA) | 0.84% | 0.94% | 0.96% | | Return on average equity (ROE) | 9.75% | 10.95% | 11.18% | | Net interest margin | 2.96% | 2.95% | 3.12% | | Efficiency ratio | 61.52% | 61.31% | 60.19% | Annual Performance Ratios | Ratio | Year 2024 | Year 2023 | | :--- | :--- | :--- | | Return on average assets (ROA) | 0.92% | 1.13% | | Return on average equity (ROE) | 10.68% | 13.05% | | Net interest margin | 2.99% | 3.37% | | Efficiency ratio | 61.19% | 57.59% | [Detailed Asset Quality](index=26&type=section&id=Detailed%20Asset%20Quality) Detailed asset quality showed nonperforming assets at $9.1 million and criticized loans at $19.6 million in Q4 2024, with a decrease in 30-89 day delinquent loans Criticized Loans by Risk Category ($ in thousands) | Category | 4Q2024 | 3Q2024 | 4Q2023 | | :--- | :--- | :--- | :--- | | Special mention loans | $6,309 | $4,540 | $1,428 | | Classified loans | $13,261 | $11,960 | $11,921 | | **Total criticized loans** | **$19,570** | **$16,500** | **$13,349** | [Average Balance Sheet and Yield/Rate Analysis](index=28&type=section&id=Average%20Balance%20Sheet%20and%20Yield%2FRate%20Analysis) Q4 2024 average balance sheet analysis shows an interest rate spread of 1.54%, with full-year compression to 1.52% due to rising cost of funds Quarterly Average Balance and Yield/Rate Analysis | Category | 4Q2024 | 3Q2024 | 4Q2023 | | :--- | :--- | :--- | :--- | | Avg. Interest-Earning Assets Yield | 6.12% | 6.30% | 6.10% | | Avg. Interest-Bearing Liabilities Cost | 4.58% | 4.82% | 4.53% | | **Interest Rate Spread** | **1.54%** | **1.48%** | **1.57%** | | **Net Interest Margin** | **2.96%** | **2.95%** | **3.12%** | Annual Average Balance and Yield/Rate Analysis | Category | Year 2024 | Year 2023 | | :--- | :--- | :--- | | Avg. Interest-Earning Assets Yield | 6.26% | 5.96% | | Avg. Interest-Bearing Liabilities Cost | 4.74% | 4.10% | | **Interest Rate Spread** | **1.52%** | **1.86%** | | **Net Interest Margin** | **2.99%** | **3.37%** |

Core Viewpoint - Value investing remains a preferred strategy for identifying strong stocks, focusing on traditional valuation metrics to find undervalued opportunities [2][3]. Company Overview: OP Bancorp (OPBK) - OP Bancorp currently holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [4]. - The stock is trading at a P/E ratio of 10.39, significantly lower than the industry average of 14.84, suggesting it may be undervalued [4]. - OPBK's Forward P/E has fluctuated between 5.88 and 12.35 over the past year, with a median of 7.92 [4]. Valuation Metrics - OPBK has a P/B ratio of 1.14, which is favorable compared to the industry average of 2.06, indicating solid valuation relative to its book value [5]. - The P/S ratio for OPBK stands at 1.58, lower than the industry's average of 2.2, reinforcing its undervalued status based on sales performance [6]. - The P/CF ratio for OPBK is 8.86, significantly below the industry average of 17.48, highlighting its strong cash flow outlook [7]. Investment Outlook - The combination of OPBK's strong valuation metrics and positive earnings outlook positions it as an attractive value stock in the current market [8].

Core Viewpoint - OP Bancorp (OPBK) is identified as a strong value stock with a Zacks Rank of 2 (Buy) and an A for Value, indicating it is likely undervalued in the current market [4][8]. Valuation Metrics - OPBK has a Forward P/E ratio of 11.72, significantly lower than the industry average of 16.02, with a historical range between 5.88 and 11.80 over the past 52 weeks [4]. - The company’s P/B ratio stands at 1.27, compared to the industry average of 2.20, with historical values ranging from 0.69 to 1.28 [5]. - OPBK's P/S ratio is 1.75, which is lower than the industry average of 2.23, indicating a favorable valuation based on sales [6]. - The P/CF ratio for OPBK is 9.78, well below the industry average of 18.32, with a historical range from 4.52 to 9.84 [7]. Investment Outlook - The combination of OPBK's attractive valuation metrics and strong earnings outlook suggests that it is an impressive value stock at present [8].

[Financial and Operational Highlights](index=1&type=section&id=OP%20BANCORP%20REPORTS%20NET%20INCOME%20FOR%202024%20THIRD%20QUARTER) OP Bancorp maintained stable net income and diluted EPS in Q3 2024, demonstrating solid asset and deposit growth while preserving strong credit quality and capital [Q3 2024 Highlights](index=1&type=section&id=2024%20Third%20Quarter%20Highlights) OP Bancorp reported stable Q3 2024 net income and EPS, alongside robust growth in assets, loans, and deposits, maintaining strong credit quality Q3 2024 vs Q2 2024 Financial Results | Metric | Q3 2024 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Income | $5.4 million | $5.4 million | No Change | | Diluted EPS | $0.36 | $0.36 | No Change | | Net Interest Income | $16.5 million | $16.2 million | +1.9% | | Net Interest Margin | 2.95% | 2.96% | -1 bp | | Total Assets | $2.39 billion | $2.29 billion | +4.2% | | Gross Loans | $1.93 billion | $1.87 billion | +3.3% | | Total Deposits | $2.06 billion | $1.94 billion | +6.4% | Q3 2024 vs Q2 2024 Credit Quality | Metric | Q3 2024 | Q2 2024 | | :--- | :--- | :--- | | Allowance for credit losses to gross loans | 1.19% | 1.22% | | Net charge-offs to average gross loans | 0.01% | (0.00)% | | Nonperforming loans to gross loans | 0.19% | 0.23% | Q3 2024 Capital Highlights | Metric | Q3 2024 | Q2 2024 | | :--- | :--- | :--- | | Common Equity Tier 1 (CET1) ratio | 11.57% | 12.01% | | Book value per common share | $13.75 | $13.23 | | Quarterly cash dividend per share | $0.12 | $0.12 | | Shares Repurchased | 4,610 | - | - The President and CEO, Min Kim, stated that the company continued to grow loans and deposits at **double-digit annualized rates** while maintaining **stable net interest margin** and **strong credit quality**[2](index=2&type=chunk) - Kim believes the **diminishing pressure on funding costs** positions the bank well for **future growth**[2](index=2&type=chunk) [Selected Financial Highlights](index=3&type=section&id=SELECTED%20FINANCIAL%20HIGHLIGHTS) This section provides a concise overview of the company's key financial performance and balance sheet metrics across recent quarters [Key Financial Data Summary](index=3&type=section&id=Selected%20Financial%20Highlights%20Table) Q3 2024 saw stable net income and EPS quarter-over-quarter, with strong year-over-year growth in loans and deposits despite net interest margin compression Selected Income Statement Data ($ in thousands) | Metric | Q3 2024 | Q2 2024 | Q3 2023 | | :--- | :--- | :--- | :--- | | Net interest income | $16,506 | $16,194 | $17,313 | | Provision for credit losses | $448 | $617 | $1,359 | | Net income | $5,436 | $5,436 | $5,121 | | Diluted EPS | $0.36 | $0.36 | $0.33 | Selected Balance Sheet Data ($ in thousands) | Metric | Q3 2024 | Q2 2024 | Q3 2023 | | :--- | :--- | :--- | :--- | | Gross loans | $1,931,007 | $1,870,106 | $1,759,525 | | Total deposits | $2,064,603 | $1,940,821 | $1,825,171 | | Total assets | $2,387,980 | $2,290,680 | $2,142,675 | Key Financial Ratios | Ratio | Q3 2024 | Q2 2024 | Q3 2023 | | :--- | :--- | :--- | :--- | | Return on average assets (ROA) | 0.94% | 0.95% | 0.96% | | Return on average equity (ROE) | 10.95% | 11.23% | 11.07% | | Net interest margin (NIM) | 2.95% | 2.96% | 3.38% | | Efficiency ratio | 61.31% | 59.81% | 57.92% | [Income Statement Analysis](index=4&type=section&id=INCOME%20STATEMENT%20HIGHLIGHTS) This section analyzes the company's revenue, expenses, and profitability trends, highlighting key drivers and changes [Net Interest Income and Net Interest Margin](index=4&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin) Net interest income increased QoQ due to loan growth but decreased YoY due to higher deposit interest expense, with NIM remaining stable QoQ but declining YoY Net Interest Income and Margin Performance | Metric | Q3 2024 | Q2 2024 | Q3 2023 | | :--- | :--- | :--- | :--- | | Net Interest Income | $16,506k | $16,194k | $17,313k | | QoQ Change | +1.9% | - | - | | YoY Change | -4.7% | - | - | | Net Interest Margin | 2.95% | 2.96% | 3.38% | | QoQ Change | -1 bp | - | - | | YoY Change | -43 bps | - | - | - **QoQ Analysis**: The **$312 thousand increase in NII** was driven by a **$1.3 million increase in interest income on loans**, partially offset by a **$578 thousand increase in interest expense on deposits**[7](index=7&type=chunk) - **YoY Analysis**: The **$807 thousand decrease in NII** was primarily due to a **$4.9 million increase in interest expense on deposits**, which was not fully offset by a **$3.6 million increase in interest income on loans**[8](index=8&type=chunk)[9](index=9&type=chunk) [Provision for Credit Losses](index=7&type=section&id=Provision%20for%20Credit%20Losses) Q3 2024 provision for credit losses significantly decreased QoQ and YoY, primarily driven by lower loan provisions and increased off-balance sheet exposure Provision for Credit Losses Breakdown ($ in thousands) | Component | Q3 2024 | Q2 2024 | Q3 2023 | | :--- | :--- | :--- | :--- | | Provision for credit losses on loans | $234 | $627 | $1,303 | | Provision for (reversal of) credit losses on off-balance sheet exposure | $214 | $(10) | $56 | | **Total provision for credit losses** | **$448** | **$617** | **$1,359** | - The provision for credit losses on loans of **$234 thousand** was primarily due to a **$215 thousand increase in the qualitative reserve**, reflecting declining collateral values for CRE loans and weakening economic conditions[12](index=12&type=chunk) - The provision for off-balance sheet exposure of **$214 thousand** was mainly due to increases in unfunded commitment balances and utilization[12](index=12&type=chunk) [Noninterest Income](index=7&type=section&id=Noninterest%20Income) Noninterest income grew modestly QoQ and substantially YoY, primarily driven by increased gain on sale of loans and higher service charges Noninterest Income Breakdown ($ in thousands) | Component | Q3 2024 | Q2 2024 | Q3 2023 | | :--- | :--- | :--- | :--- | | Service charges on deposits | $889 | $793 | $575 | | Loan servicing fees, net | $693 | $575 | $468 | | Gain on sale of loans | $2,088 | $2,325 | $1,179 | | Other income | $570 | $491 | $379 | | **Total noninterest income** | **$4,240** | **$4,184** | **$2,601** | - **Gain on Sale of Loans**: The Bank sold **$35.6 million in SBA loans** at an average premium of **7.30% in Q3 2024**, compared to selling **$32.1 million at 8.58% in Q2 2024** and **$23.4 million at 6.50% in Q3 2023**[15](index=15&type=chunk)[16](index=16&type=chunk) - **Loan Servicing Fees**: Increased QoQ and YoY due to a **decrease in servicing fee amortization** driven by lower loan payoffs[17](index=17&type=chunk) [Noninterest Expense](index=8&type=section&id=Noninterest%20Expense) Noninterest expense increased QoQ and YoY, mainly due to higher salaries, employee benefits, and data processing costs supporting business growth Noninterest Expense Breakdown ($ in thousands) | Component | Q3 2024 | Q2 2024 | Q3 2023 | | :--- | :--- | :--- | :--- | | Salaries and employee benefits | $8,031 | $7,568 | $7,014 | | Occupancy and equipment | $1,676 | $1,660 | $1,706 | | Data processing and communication | $634 | $530 | $369 | | **Total noninterest expense** | **$12,720** | **$12,189** | **$11,535** | - **QoQ Increase**: Driven by a **$463 thousand increase in salaries and benefits** (due to higher incentive and vacation accruals) and a **$104 thousand increase in data processing costs**[20](index=20&type=chunk) - **YoY Increase**: Driven by a **$1.0 million increase in salaries and benefits** and a **$265 thousand increase in data processing costs** to support continued growth[21](index=21&type=chunk) [Income Tax Expense](index=9&type=section&id=Income%20Tax%20Expense) Q3 2024 income tax expense was $2.1 million, with an effective tax rate of 28.3%, consistent QoQ but higher YoY due to prior year adjustments Effective Tax Rate Comparison | Period | Income Tax Expense | Effective Tax Rate | | :--- | :--- | :--- | | Q3 2024 | $2.1 million | 28.3% | | Q2 2024 | $2.1 million | 28.2% | | Q3 2023 | $1.9 million | 27.1% | [Balance Sheet Analysis](index=10&type=section&id=BALANCE%20SHEET%20HIGHLIGHTS) This section details the company's asset, liability, and equity composition, highlighting changes and key trends [Loans](index=10&type=section&id=Loans) Gross loans grew significantly QoQ and YoY to $1.93 billion, driven by a surge in new originations across C&I, SBA, and CRE segments Gross Loan Composition ($ in thousands) | Loan Type | Q3 2024 | Q2 2024 | Q3 2023 | | :--- | :--- | :--- | :--- | | CRE loans | $966,472 | $931,284 | $878,824 | | SBA loans | $252,379 | $242,395 | $240,154 | | C&I loans | $212,476 | $188,557 | $124,632 | | Home mortgage loans | $499,666 | $506,873 | $515,789 | | **Gross loans** | **$1,931,007** | **$1,870,106** | **$1,759,525** | New Loan Originations ($ in thousands) | Loan Type | Q3 2024 | Q2 2024 | Q3 2023 | | :--- | :--- | :--- | :--- | | CRE loans | $68,525 | $41,990 | $33,222 | | SBA loans | $46,302 | $24,142 | $39,079 | | C&I loans | $27,771 | $21,271 | $14,617 | | **Gross loans** | **$152,703** | **$101,123** | **$96,055** | - The loan portfolio's interest rate composition as of Q3 2024 was **35.7% fixed-rate**, **34.7% hybrid-rate**, and **29.6% variable-rate**, with a weighted average contractual rate of **6.52%**[30](index=30&type=chunk) [Allowance for Credit Losses (ACL)](index=12&type=section&id=Allowance%20for%20Credit%20Losses) ACL on loans slightly increased to $23.0 million, with the ACL to gross loans ratio decreasing to 1.19% due to strong loan growth Allowance for Credit Losses Roll-Forward ($ in thousands) | Description | Q3 2024 | Q2 2024 | | :--- | :--- | :--- | | **ACL on Loans, beginning** | **$22,760** | **$22,129** | | Provision for credit losses | $234 | $627 | | Net (charge-offs) recoveries | $(34) | $4 | | **ACL on Loans, ending** | **$22,960** | **$22,760** | | **ACL on Off-Balance Sheet, ending** | **$672** | **$458** | [Asset Quality](index=13&type=section&id=Asset%20Quality) Asset quality remained strong in Q3 2024, with nonperforming loans decreasing and criticized loans stable, despite an increase in 30-89 day past due loans Key Asset Quality Metrics | Metric | Q3 2024 | Q2 2024 | Q3 2023 | | :--- | :--- | :--- | :--- | | Nonperforming loans to gross loans | 0.19% | 0.23% | 0.24% | | Nonperforming assets to total assets | 0.20% | 0.25% | 0.20% | | Criticized loans to gross loans | 0.85% | 0.88% | 0.78% | | Net charge-offs to average gross loans | 0.01% | (0.00)% | 0.11% | - Nonperforming loans decreased by **17.5% QoQ to $3.6 million**[35](index=35&type=chunk) - Loans 30-89 days past due increased to **$10.3 million (0.53% of gross loans)** from **$6.7 million (0.36%) in Q2 2024**, largely due to four home mortgage loans and three SBA real estate loans[35](index=35&type=chunk)[36](index=36&type=chunk) [Deposits](index=14&type=section&id=Deposits) Total deposits grew significantly QoQ and YoY to $2.06 billion, primarily driven by increases in time deposits and noninterest-bearing deposits Deposit Composition ($ in thousands) | Deposit Type | Q3 2024 | Q2 2024 | Q3 2023 | | :--- | :--- | :--- | :--- | | Noninterest-bearing deposits | $561,801 | $518,456 | $605,509 | | Money market and others | $343,188 | $332,137 | $348,869 | | Time deposits | $1,159,614 | $1,090,228 | $870,793 | | **Total deposits** | **$2,064,603** | **$1,940,821** | **$1,825,171** | - **QoQ Growth**: Driven by a **$69.4 million increase in time deposits** and a **$43.3 million increase in noninterest-bearing deposits**[38](index=38&type=chunk) - **YoY Growth**: Driven by a **$288.8 million increase in time deposits**, which offset a **$43.7 million decrease in noninterest-bearing deposits**[39](index=39&type=chunk) - Estimated uninsured deposits increased to **$946.4 million**, representing **45.8% of total deposits**[40](index=40&type=chunk) [Liquidity and Capital](index=15&type=section&id=OTHER%20HIGHLIGHTS) The company maintained strong liquidity with $366.1 million in liquid assets and robust capital ratios well above regulatory minimums, alongside continued dividend payments and share repurchases Liquidity Position ($ in thousands) | Metric | Q3 2024 | Q2 2024 | | :--- | :--- | :--- | | Liquid assets | $366,129 | $326,881 | | Total available borrowings | $705,399 | $635,021 | | Liquid assets and available borrowings to total deposits | 51.9% | 49.6% | - A quarterly cash dividend of **$0.12 per share** was declared[44](index=44&type=chunk) - The company repurchased **4,610 shares of common stock** at an average price of **$10.09 per share** during Q3 2024[45](index=45&type=chunk) OP Bancorp Capital Ratios | Ratio | Q3 2024 | Q2 2024 | Minimum Well Capitalized | | :--- | :--- | :--- | :--- | | Common equity tier 1 ratio | 11.57% | 12.01% | 6.50% | | Tier 1 risk-based capital ratio | 11.57% | 12.01% | 8.00% | | Total risk-based capital ratio | 12.79% | 13.26% | 10.00% | | Leverage ratio | 9.30% | 9.28% | 5.00% | [Consolidated Financial Statements](index=19&type=section&id=CONSOLIDATED%20FINANCIAL%20STATEMENTS%20(unaudited)) This section presents the unaudited consolidated balance sheets and statements of income, along with key financial ratios and asset quality details [Consolidated Balance Sheets](index=19&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS%20(unaudited)) Total assets reached $2.39 billion and total deposits $2.06 billion by Q3 2024, reflecting growth in net loans and shareholders' equity Consolidated Balance Sheet Highlights ($ in thousands) | Account | Sep 30, 2024 | Jun 30, 2024 | Sep 30, 2023 | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $166,756 | $127,676 | $105,740 | | Net loans receivable | $1,908,047 | $1,847,346 | $1,737,908 | | **Total assets** | **$2,387,980** | **$2,290,680** | **$2,142,675** | | Total deposits | $2,064,603 | $1,940,821 | $1,825,171 | | **Total liabilities** | **$2,184,377** | **$2,094,694** | **$1,958,368** | | **Total shareholders' equity** | **$203,603** | **$195,986** | **$184,307** | [Consolidated Statements of Income](index=20&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20INCOME%20(unaudited)) Q3 2024 net income remained stable at $5.4 million, while nine-month net income decreased 14.1% year-over-year due to lower net interest income Consolidated Income Statement (Quarterly, $ in thousands) | Account | Q3 2024 | Q2 2024 | Q3 2023 | | :--- | :--- | :--- | :--- | | Net interest income | $16,506 | $16,194 | $17,313 | | Provision for credit losses | $448 | $617 | $1,359 | | Total noninterest income | $4,240 | $4,184 | $2,601 | | Total noninterest expense | $12,720 | $12,189 | $11,535 | | **Net income** | **$5,436** | **$5,436** | **$5,121** | | **Earnings per share - diluted** | **$0.36** | **$0.36** | **$0.33** | Consolidated Income Statement (Nine Months Ended, $ in thousands) | Account | 9M 2024 | 9M 2023 | % Change | | :--- | :--- | :--- | :--- | | Net interest income | $48,679 | $52,457 | (7.2)% | | Provision for credit losses | $1,210 | $1,021 | 18.5% | | **Net income** | **$16,098** | **$18,746** | (14.1)% | | **Earnings per share - diluted** | **$1.06** | **$1.21** | (12.4)% | [Key Ratios](index=21&type=section&id=KEY%20RATIOS) Q3 2024 key ratios included ROA of 0.94%, ROE of 10.95%, NIM of 2.95%, and a strong total risk-based capital ratio of 12.79% Key Ratios (Quarterly) | Ratio | Q3 2024 | Q2 2024 | Q3 2023 | | :--- | :--- | :--- | :--- | | Return on average assets (ROA) | 0.94% | 0.95% | 0.96% | | Return on average equity (ROE) | 10.95% | 11.23% | 11.07% | | Net interest margin | 2.95% | 2.96% | 3.38% | | Efficiency ratio | 61.31% | 59.81% | 57.92% | Key Ratios (Nine Months Ended) | Ratio | 9M 2024 | 9M 2023 | | :--- | :--- | :--- | | Return on average assets (ROA) | 0.95% | 1.18% | | Return on average equity (ROE) | 11.00% | 13.69% | | Net interest margin | 2.99% | 3.45% | | Efficiency ratio | 61.08% | 56.77% | [Asset Quality Details](index=26&type=section&id=ASSET%20QUALITY) Q3 2024 asset quality showed decreased nonperforming assets to $4.9 million and stable criticized loans, despite an increase in 30-89 day past due loans Nonperforming and Criticized Loans ($ in thousands) | Category | Q3 2024 | Q2 2024 | Q3 2023 | | :--- | :--- | :--- | :--- | | Nonperforming loans | $3,620 | $4,389 | $4,211 | | OREO | $1,237 | $1,237 | $0 | | **Nonperforming assets** | **$4,857** | **$5,626** | **$4,211** | | Special mention loans | $4,540 | $3,339 | $3,651 | | Classified loans | $11,960 | $13,089 | $10,139 | | **Total criticized loans** | **$16,500** | **$16,428** | **$13,790** | [Average Balance Sheet and Yield/Rate Analysis](index=28&type=section&id=AVERAGE%20BALANCE%20SHEET%2C%20INTEREST%20AND%20YIELD%2FRATE%20ANALYSIS) Q3 2024 average yield on interest-earning assets was 6.30%, with a net interest margin of 2.95% and an average cost of total deposits at 3.57% Quarterly Average Yield/Rate Analysis | Metric | Q3 2024 | Q2 2024 | Q3 2023 | | :--- | :--- | :--- | :--- | | Yield on total interest-earning assets | 6.30% | 6.29% | 6.08% | | Cost of total interest-bearing liabilities | 4.82% | 4.81% | 4.23% | | Net interest rate spread | 1.48% | 1.48% | 1.85% | | Net interest margin | 2.95% | 2.96% | 3.38% | | Cost of total deposits | 3.57% | 3.54% | 2.83% | Nine-Month Average Yield/Rate Analysis | Metric | 9M 2024 | 9M 2023 | | :--- | :--- | :--- | | Yield on total interest-earning assets | 6.30% | 5.91% | | Cost of total interest-bearing liabilities | 4.80% | 3.94% | | Net interest rate spread | 1.50% | 1.97% | | Net interest margin | 2.99% | 3.45% |

Exhibit 99.1 • Financial Results: • Credit Quality: Annualized. (1) Includes loans held for sale. (2) Includes special mention, substandard, doubtful, and loss categories. (3) OP BANCORP REPORTS NET INCOME FOR 2024 SECOND QUARTER OF $5.4 MILLION AND DILUTED EARNINGS PER SHARE OF $0.36 LOS ANGELES, July 25, 2024 — OP Bancorp (the "Company") (NASDAQ: OPBK), the holding company of Open Bank (the "Bank"), today reported its financial results for the second quarter of 2024. Net income for the second quarter of 2 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________ FORM 10-Q ________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File Number: 001-38437 OP BANCORP (Exact Name of Registrant as Specified in ...

Interest-Earning Assets and Liabilities - Total interest-earning assets increased to $2,089,627 thousand in 1Q2024, up from $2,071,613 thousand in 4Q2023 and $2,022,146 thousand in 1Q2023[53] - Total interest-bearing deposits increased to $1,321,828 thousand in 1Q2024, up from $1,243,446 thousand in 4Q2023 and $1,196,194 thousand in 1Q2023[53] Net Interest Income and Margin - Net interest income for 1Q2024 was $15,979 thousand, slightly down from $16,230 thousand in 4Q2023 but significantly lower than $17,892 thousand in 1Q2023[53] - Net interest margin decreased to 3.06% in 1Q2024 from 3.12% in 4Q2023 and 3.57% in 1Q2023[53] Loan Performance - CRE loans grew to $901,262 thousand in 1Q2024, with a yield of 6.13%, up from $892,092 thousand and 5.83% yield in 4Q2023[53] - SBA loans reached $259,368 thousand in 1Q2024, with a yield of 11.19%, compared to $255,692 thousand and 10.95% yield in 4Q2023[53] Cost of Funds - Total funding liabilities cost of funds rose to 3.50% in 1Q2024, up from 3.19% in 4Q2023 and 2.29% in 1Q2023[53] Shareholders' Equity - Shareholders' equity increased to $192,994 thousand in 1Q2024, up from $185,000 thousand in 4Q2023 and $179,184 thousand in 1Q2023[53]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________ FORM 10-K ________________________ (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File Number: 001-38437 OP BANCORP (Exact Name of Registrant as Specified in its C ...

Interest Rate Sensitivity - Net interest sensitivity at +300 basis points decreased to (4.60)% as of September 30, 2023, compared to 0.12% on December 31, 2022 [228] - Economic value of equity sensitivity at +300 basis points improved to (41.93)% as of September 30, 2023, from (42.72)% on December 31, 2022 [228] - Net interest sensitivity at -300 basis points increased to 7.32% as of September 30, 2023, compared to (3.24)% on December 31, 2022 [228] - Economic value of equity sensitivity at -300 basis points improved to (0.11)% as of September 30, 2023, from (18.42)% on December 31, 2022 [228]