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, 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 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION FORM 10-K ________________________ Washington, D.C. 20549 ________________________ (Mark One) OP BANCORP (Exact Name of Registrant as Specified in its Charter) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | California | 81-3114676 | | --- | --- | | (State or other jurisdiction of | (I.R.S. Employer | | incorporation or organization) | Identification No.) | | 1000 Wilshire Blvd., Suite 500, | | | Los Angeles, CA | 9001 ...

Financial Performance - Net income for the three months ended September 30, 2022, was $8.7 million, a 4.8% increase from $8.3 million in the same period of 2021[107]. - Net income for the nine months ended September 30, 2022, was $25,282,000, an increase of 28.3% from $19,706,000 in 2021[119]. - Noninterest income for the nine months ended September 30, 2022, was $14.4 million, an increase of $5.7 million or 64.9%, compared to $8.7 million for the same period in 2021[144]. - Net interest income for the three months ended September 30, 2022, increased to $20.3 million, up by $3.8 million or 22.6% from $16.6 million[107]. - Net interest income for the nine months ended September 30, 2022, was $61,326,000, an increase of 32.1% from $46,336,000 in 2021[119]. Asset Growth - Total assets increased to $2.03 billion, up by $349.7 million or 20.8% from $1.68 billion[107]. - Total assets reached $1,957,914,000 as of September 30, 2022, compared to $1,622,857,000 in 2021, reflecting a growth of 21.0%[123]. - Total deposits reached $1.82 billion, an increase of $320.4 million or 21.4% from $1.50 billion[107]. - Total deposits increased to $1.82 billion as of September 30, 2022, up from $1.53 billion at December 31, 2021, reflecting a growth of approximately 18.6%[198]. Loan Portfolio - Gross loans rose to $1.62 billion, an increase of $386.2 million or 31.4% from $1.23 billion[107]. - The loan portfolio included $830.1 million in commercial real estate loans, representing 51.3% of total loans as of September 30, 2022, compared to $701.5 million, or 53.3%, as of December 31, 2021[171]. - Home mortgage loans increased significantly to $419.5 million as of September 30, 2022, compared to $173.3 million at December 31, 2021, marking a growth of about 142.3%[179]. - The SBA loan portfolio decreased to $232.6 million as of September 30, 2022, down from $275.9 million as of December 31, 2021, reflecting a decline of approximately 15.7%[177]. Noninterest Expenses - Total noninterest expense for the three months ended September 30, 2022, was $12.3 million, an increase of $2.8 million, or 29.6%, compared to $9.5 million for the same period in 2021[147]. - Total noninterest expense for the nine months ended September 30, 2022, was $33.5 million, an increase of $7.2 million, or 27.5%, compared to $26.3 million for the same period in 2021, driven by higher salaries and employee benefits, occupancy and equipment, and other expenses[151]. - Salaries and employee benefits expense for the three months ended September 30, 2022, was $7.3 million, an increase of $1.6 million, or 28.3%, due to an increase in salaries and employee incentive accruals[148]. Loan Losses and Allowance - The allowance for loan losses to gross loans receivable was 1.14% as of September 30, 2022, compared to 1.23% as of December 31, 2021[109]. - Provision for loan losses was $1,999,000 for the nine months ended September 30, 2022, compared to a reversal of $1,376,000 in 2021, indicating a change of $3,375,000[119]. - The total allowance for loan losses was $18.37 million as of September 30, 2022, compared to $16.12 million at December 31, 2021, indicating an increase of approximately 13.9%[191]. Capital Ratios - The total capital to risk-weighted assets ratio for the consolidated entity was 13.10% as of September 30, 2022, exceeding the minimum requirement for being considered "well-capitalized"[206]. - The Tier 1 capital to risk-weighted assets ratio for the consolidated entity was 11.92% as of September 30, 2022, above the required minimum of 6.00%[207]. - The CET1 capital to risk-weighted assets ratio for the consolidated entity was also 11.92% as of September 30, 2022, surpassing the minimum requirement of 4.50%[207]. Interest Rate Risk - Interest rate risk is identified as the primary source of market risk, with management actively monitoring and managing this risk through various strategies[208]. - The net interest sensitivity for a +400 basis points shift is 1.13%, compared to 26.96% on December 31, 2021[217]. - The economic value of equity sensitivity decreased significantly from (8.18)% on December 31, 2021, to (52.12)% with a +400 basis points shift as of September 30, 2022[217].

Financial Performance - Net income for the three months ended June 30, 2022, was $8.5 million, a 32.9% increase from $6.4 million in the same period of 2021[104]. - Net income for the six months ended June 30, 2022, was $16,632,000, an increase of $5,176,000 or 45.3% from $11,456,000 in 2021[116]. - Noninterest income for the three months ended June 30, 2022, was $5.4 million, an increase of $3.1 million or 141.2% from $2.2 million[115]. - Noninterest income rose to $9,575,000 for the six months ended June 30, 2022, compared to $5,186,000 in 2021, marking an increase of $4,389,000 or 84.5%[116]. - The efficiency ratio improved to 47.07% for the three months ended June 30, 2022, compared to 52.30% for the same period in 2021[105]. Asset and Loan Growth - Total assets increased to $1.93 billion, up by $332.4 million or 20.7% from $1.60 billion[104]. - Gross loans rose to $1.48 billion, an increase of $238.9 million or 19.2% from $1.25 billion[104]. - Total deposits reached $1.74 billion, an increase of $307.5 million or 21.4% from $1.43 billion[104]. - The total gross loans amounted to $1,484.7 million, an increase from $1,314.0 million as of December 31, 2021, representing a growth of approximately 12.9%[164]. - The commercial real estate loan portfolio totaled $776.8 million as of June 30, 2022, up from $701.5 million at December 31, 2021, indicating a growth of about 10.7%[166]. Interest Income and Margin - Net interest income for the three months ended June 30, 2022, increased to $19.1 million, up by $4.5 million or 30.8% from $14.6 million[104]. - Net interest income for the six months ended June 30, 2022, was $36,369,000, an increase of $9,028,000 or 33.0% compared to $27,341,000 in 2021[116]. - The net interest margin improved to 4.21% for the three months ended June 30, 2022, compared to 3.98% in the same period in 2021[120]. - Total interest income increased to $38,092,000 for the six months ended June 30, 2022, up from $28,981,000 in 2021, reflecting a change of $9,111,000 or 31.4%[116]. Loan Losses and Asset Quality - The allowance for loan losses to gross loans receivable was 1.19% as of June 30, 2022[106]. - The net charge-offs to average gross loans receivable was (0.01)% as of June 30, 2022, indicating strong asset quality[106]. - Nonperforming loans decreased to $2.2 million at June 30, 2022, down from $3.2 million at December 31, 2021, indicating a reduction of 31.25%[183]. - The ratio of nonperforming loans to gross loans was 0.15% as of June 30, 2022, compared to 0.24% at December 31, 2021, showing an improvement in asset quality[186]. - The allowance for loan losses was $17.7 million at June 30, 2022, compared to $16.1 million at December 31, 2021, representing an increase of approximately 9.9%[177]. Deposits and Funding - Noninterest-bearing demand deposits increased to $820,311 thousand, accounting for 47.1% of total deposits as of June 30, 2022, compared to 50.5% at December 31, 2021[188]. - The total deposits reached $1,741,623 thousand as of June 30, 2022, up from $1,534,066 thousand at December 31, 2021, reflecting a growth of 13.5%[188]. - The maximum borrowing capacity from the Federal Home Loan Bank (FHLB) increased to $482.0 million as of June 30, 2022, from $417.6 million at December 31, 2021[189]. Noninterest Expenses - Total noninterest expense for the three months ended June 30, 2022, was $11.5 million, an increase of $2.7 million, or 30.9%, compared to $8.0 million for the same period in 2021[145]. - Noninterest expense for the six months ended June 30, 2022, was $21.2 million, an increase of $4.4 million, or 26.3%, compared to $16.8 million in the same period of 2021[149]. - Salaries and employee benefits expense increased by $2.8 million, or 28.1%, to $12.8 million for the six months ended June 30, 2022, primarily due to hiring additional employees[150]. Capital Ratios - The total capital ratio for the consolidated entity was 13.51% as of June 30, 2022, exceeding the minimum requirement to be considered "well-capitalized"[198]. - The Tier 1 capital ratio for the consolidated entity was 12.29% as of June 30, 2022, also above the regulatory minimum[198]. - The company maintained a CET1 capital ratio of 12.29% as of June 30, 2022, surpassing the required minimum of 4.5%[198]. Interest Rate Risk - Interest rate risk is identified as the primary source of market risk for the company, impacting earnings and asset values[199]. - The company utilizes a net interest income simulation model to evaluate potential changes in net interest income under various interest rate scenarios[205]. - The asset liability committee monitors interest rate risk sensitivity on a quarterly basis to ensure compliance with established risk limits[201].

Financial Performance - Net income for the three months ended March 31, 2022, was $8.2 million, an increase of $3.1 million or 60.6% from $5.1 million in the same period of 2021[109] - Net interest income increased to $17.3 million, a rise of $4.5 million or 35.6% from $12.8 million, primarily due to higher interest income on loans[109] - Noninterest income for the three months ended March 31, 2022, was $4.2 million, an increase of $1.3 million, or 42.1%, compared to $3.0 million for the same period in 2021[128] - The total gain on sale of loans was $3.2 million for the three months ended March 31, 2022, compared to $1.9 million for the same period in 2021, an increase of 72.1%[129] - Noninterest expense for the three months ended March 31, 2022, was $9.7 million, an increase of $1.7 million, or 21.3%, compared to $8.0 million for the same period in 2021[130] Asset and Loan Growth - Total assets reached $1.86 billion, an increase of $408.6 million or 7.9% from $1.46 billion[109] - Gross loans amounted to $1.43 billion, up $272.5 million or 23.6% from $1.16 billion, driven by Hana loan purchases and home mortgage loan purchases[109] - Total deposits increased to $1.67 billion, a growth of $386.6 million or 30.1% from $1.29 billion, mainly due to an increase in noninterest-bearing deposits[109] - The home mortgage loan portfolio grew by $93.2 million, or 53.8%, totaling $266.5 million as of March 31, 2022, primarily due to an $81.6 million purchase from third-party mortgage originators[152] - The commercial real estate loan portfolio reached $730.8 million as of March 31, 2022, an increase of $29.4 million from $701.5 million as of December 31, 2021[148] Capital and Equity - Shareholders' equity rose to $166 million, an increase of $19 million or 12.9% from $147 million[109] - The company reported total capital to risk-weighted assets at 13.29%, exceeding the minimum requirement to be considered "well-capitalized"[184] - The Tier 1 capital ratio was 12.11% as of March 31, 2022, compared to 13.66% as of December 31, 2021, indicating a slight decrease in capital adequacy[186] Loan Losses and Allowances - The allowance for loan losses to gross loans receivable was 1.17%, a slight decrease from 1.23% as of December 31, 2021[110] - Provision for loan losses decreased to $341 thousand for the three months ended March 31, 2022, down $279 thousand, or 45.0%, from $620 thousand for the same period in 2021[125] - The allowance for loan losses increased from $16.123 million as of December 31, 2021, to $16.672 million as of March 31, 2022[145] - The total allowance for loan losses to nonperforming loans ratio was 594% as of March 31, 2022, compared to 504% at December 31, 2021[170] Liquidity and Deposits - Total liquid assets as of March 31, 2022, were $291,158,000, up from $265,903,000 as of December 31, 2021, indicating improved liquidity[179] - The loans-to-deposit ratio was 84.4% as of March 31, 2022, slightly down from 84.6% at the end of 2021, with net loans totaling $1,411,738,000[176] - Noninterest-bearing demand deposits accounted for 50.7% of total deposits as of March 31, 2022, up from 50.5% at December 31, 2021[172] 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 affecting earnings and asset values[187] - The company continuously monitors its liquidity position to meet both short-term and long-term cash flow requirements, ensuring a balance between assets and liabilities[175] - The company's asset liability committee (ALM) establishes broad policy limits for interest rate risk, while the management's asset liability committee (ALCO) sets specific operating guidelines[189] - The net interest income simulation model evaluates potential changes in net interest income under various hypothetical interest rate scenarios[193] - An asset sensitive position indicates that an increase in short-term interest rates is expected to generate higher net interest income[191]

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, 2021 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 Charter) (State or ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 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 September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Securities registered pursuant to Section 12(b) of the Act: | | Trading | | | --- | --- | --- | | Title of each class | Sym ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 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 June 30, 2021 California 81-3114676 (State or other jurisdiction of incorporation or organization) 1000 Wilshire Blvd., Suite 500, Los Angeles, CA 90017 (Address of principal executive offices) (Zip Code) (I.R.S. Employer Identification No.) Registrant's telephone number, including area code: (213) ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) For the transition period from __________ to __________ Commission File Number: 001-38437 OP BANCORP (Exact Name of Registrant as Specified in its Charter) California 81-3114676 (State or other jurisdiction of incorporation or organization) 1000 Wilshire Blvd., Suite 500, Los Angeles, CA 90017 (Address of principal executive offices) (Zip Code) (I.R.S. Employer Identification No.) ☒ QUARTERLY REPORT PURSUANT TO SECTIO ...

Loan Portfolio - As of December 31, 2020, the total loan portfolio amounted to $1,099.7 million, with commercial real estate loans constituting 59.2% at $651.7 million[33] - The small business administration (SBA) loans totaled $211.4 million, representing 19.2% of total loans, while home mortgage loans were $128.2 million, accounting for 11.7%[33] - The aggregate amount of loans to the 10 largest borrowers was approximately $161.3 million, or 14.7% of total loans, and to the 25 largest borrowers was $271.6 million, or 24.7%[35] - The commercial real estate loan portfolio had no non-performing loans as of December 31, 2020, with 65% of these loans being fixed-rate[46] - The SBA loan portfolio, including PPP loans, totaled $211.4 million, with $64.9 million classified as PPP loans[54] - Non-performing SBA loans amounted to $56,000 as of December 31, 2020[54] - The total commercial and industrial loan portfolio was $107.3 million, with non-performing loans at $330,000[59] - The company originated 978 loans with an aggregate balance of $66.3 million under the CARES Act and PPP/HCEA Act[53] - The total single-family residential real estate loan portfolio amounted to $128.2 million as of December 31, 2020[65] - Non-performing single-family residential real estate loans were $599,000 as of December 31, 2020[65] - The total consumer loan portfolio reached $1.2 million as of December 31, 2020, with no non-performing consumer loans reported[67] Risk Management - The company has implemented sound risk management practices to monitor concentrations in commercial real estate within its loan portfolio[34] - The Bank's commercial real estate concentration is a regulatory concern, with specific numerical indicators guiding risk management practices[151] - The company identified interest rate risk as its primary source of market risk, arising from timing differences in repricings and maturities of interest-earning assets and interest-bearing liabilities[503] - The company’s asset liability committee monitors interest rate risk sensitivity on a quarterly basis to ensure compliance with approved risk limits[505] - The company utilizes a net interest income simulation model to evaluate potential changes in net interest income under various hypothetical interest rate scenarios[509] Capital Adequacy - The Bank must maintain a Tier 1 leverage ratio of at least 4.0% and a common equity Tier 1 (CET1) to risk-weighted assets of 4.5%[101] - As of December 31, 2020, the Bank's capital ratios exceeded the minimum capital adequacy guideline percentage requirements for "well capitalized" institutions under the Basel III Capital Rules[107] - The capital conservation buffer requirement is at its fully phased-in level of 2.5% as of January 1, 2019[104] - The Bank was required to maintain a CET1 capital ratio of at least 6.375% to avoid limitations on capital distributions during 2020[105] - The Bank's total capital ratio must be at least 8.0% to meet regulatory requirements[101] - The Company is subject to regulation and supervision by the Federal Reserve under the Bank Holding Company Act of 1956[112] - The Company must maintain capital in accordance with Federal Reserve capital adequacy requirements, as affected by the Dodd-Frank Act and Basel III[121] - The Bank exceeded its minimum capital requirements under applicable regulatory guidelines as of December 31, 2020[139] Regulatory Compliance - Federal law prohibits any person or company from acquiring control of an FDIC-insured depository institution without prior notice to the appropriate federal bank regulator[116] - The Federal Reserve requires bank holding companies to be well-capitalized and well-managed to complete interstate mergers or acquisitions[115] - The Company decided to opt out of the new community banking leverage framework intended to simplify regulatory capital requirements[110] - The Dodd-Frank Act increased the minimum designated reserve ratio of the DIF to 1.35% of the estimated amount of total insured deposits as of September 30, 2020[135] - The Company has not elected to be a financial holding company and has not engaged in nonbanking activities determined by the Federal Reserve to be financial in nature[119] - The Federal Reserve has the authority to regulate the debt of bank holding companies, including imposing interest rate ceilings and reserve requirements[124] - The Dodd-Frank Act requires lenders to retain an economic interest in the credit risk relating to loans that do not comply with ability-to-repay standards, generally set at 5%[159] - The CFPB's final rules amending the ability-to-repay/qualified mortgage requirements are scheduled for mandatory compliance by July 1, 2021[160] - The Bank is subject to federal laws aimed at countering money laundering and terrorist financing, including the USA PATRIOT Act and the Bank Secrecy Act[148] - The Bank's policies and procedures are believed to comply with anti-money laundering and Office of Foreign Assets Control regulations[150] - The Dodd-Frank Act has created a more intense environment for consumer finance regulation, potentially increasing compliance costs[156] Operational Performance - The bank is the seventh-largest among eight banks in the Korean-American direct banking market in Southern California based on total assets as of December 31, 2020[77] - The bank aims to grow both organically and through potential acquisitions in overlapping markets with Chinese-American banks[78] - The bank has made significant investments in information technology systems to enhance capabilities and support future growth[84] - As of December 31, 2020, the bank employed approximately 173 full-time equivalent employees, with a gender distribution of 30% male and 70% female[91] - The executive team consists of four females and two males, with key executives having been with the company since 2010[91] - The bank has not experienced interruptions of operations due to labor disagreements, indicating a good relationship with employees[91] - There are currently no claims or legal proceedings filed against the bank[92] Insurance and Assessments - The Bank's deposit accounts are insured by the FDIC's Deposit Insurance Fund to the maximum extent provided under federal law[130] - As of December 31, 2020, the Bank paid $256,000 in aggregate FDIC deposit insurance premiums[135] - The Bank paid supervisory assessments to the DFPI totaling $112,000 during the year ended December 31, 2020[136] - The Company is permitted to pay dividends from retained earnings or net income, subject to certain conditions and regulatory approvals[138] Interest Rate Sensitivity - As of December 31, 2020, a 400 basis points increase in interest rates is projected to increase net interest income sensitivity by 30.27%[512] - The Federal Reserve's monetary policy significantly impacts the operating results of financial institutions, influencing loan growth and interest rates[172] - Future legislative and regulatory changes could affect the company's business and operations, as new laws may be introduced or existing ones amended[173] Cybersecurity and Data Protection - The company employs a layered cybersecurity approach to manage and maintain controls against cyber threats, although risks remain high due to evolving threats[171] - Federal and state regulators are increasingly active in implementing privacy and cybersecurity standards, with California leading in data protection laws[170] - The CFPB has announced intentions to enhance consumer control over financial data, aligning with California's CCPA and CPRA regulations[168] Community Reinvestment - The Bank had a Community Reinvestment Act (CRA) rating of "satisfactory" as of its most recent regulatory examination[146]