OP Bancorp(US:OPBK)2025-07-24 20:30Financial Performance - Net income for Q2 2025 was $6.3 million, an increase of 14% from $5.6 million in Q1 2025 and 17% from $5.4 million in Q2 2024[3]. - Diluted earnings per share (EPS) rose to $0.42, up 14% from $0.37 in Q1 2025 and 17% from $0.36 in Q2 2024[4]. - Total interest income for Q2 2025 increased to $37,665,000, up 10% from Q2 2024[53]. - Net interest income after provision for credit losses rose to $18,515,000, reflecting an 11% increase compared to Q2 2024[53]. - Noninterest income decreased to $3,968,000, down 5% from Q2 2024[53]. - Return on Assets (ROA) improved to 1.00%, up 8 basis points from Q1 2025[54]. - Return on Equity (ROE) increased to 11.97%, a rise of 124 basis points from Q1 2025[54]. - Book value per share at period-end increased to $14.36, a 9% rise from Q2 2024[56]. Asset and Loan Growth - Total assets grew to $2.56 billion, a 2% increase from $2.51 billion in Q1 2025 and a 12% increase from $2.29 billion in Q2 2024[7]. - Gross loans reached $2.07 billion, a 1% increase from $2.04 billion in Q1 2025 and an 11% increase from $1.87 billion in Q2 2024[7]. - Total loans reached $2,050,354 thousand in Q2 2025, a 12.3% increase from $1,826,108 thousand in Q2 2024[67]. - The average balance of CRE loans rose to $1,014,772 thousand in Q2 2025, up from $906,290 thousand in Q2 2024, indicating a growth of 12.0%[67]. Deposit and Funding - Total deposits rose to $2.25 billion, up 3% from $2.19 billion in Q1 2025 and 16% from $1.94 billion in Q2 2024[7]. - Interest-bearing deposits increased to $1,619,249 thousand in Q2 2025, compared to $1,381,485 thousand in Q2 2024, marking a growth of 17.2%[67]. - Time deposits totaled $1.26 billion, with a weighted average rate of 4.34%[40]. - Total available borrowings increased to $766.6 million, representing 30% of total assets, up from 28% in the previous quarter[42]. Interest Income and Margin - Net interest income increased to $19.7 million, reflecting a 13% rise from $17.4 million in Q1 2025 and a 22% increase from $16.2 million in Q2 2024[7]. - The net interest margin improved to 3.23%, compared to 3.01% in Q1 2025 and 2.96% in Q2 2024[7]. - The net interest margin improved to 3.12% in Q2 2025, up from 3.01% in Q2 2024, indicating enhanced profitability on interest-earning assets[67]. Expenses and Credit Quality - Total noninterest expense increased by $1.8 million, or 15%, compared to Q2 2024, primarily due to higher salaries and employee benefits[25]. - Provision for credit losses on loans increased by $628 thousand in Q2 2025 compared to Q2 2024, mainly due to higher historical loss factors from risk rating downgrades[17]. - Nonperforming loans decreased to $8.9 million, representing 0.43% of gross loans, down from 0.51% in the previous quarter[33][35]. - The company reported a net charge-off rate of 0.06%, indicating strong credit quality[35]. Shareholder Returns - The company paid a quarterly cash dividend of $0.12 per share[4]. - The Company declared a quarterly cash dividend of $0.12 per share, payable on August 21, 2025, to shareholders of record as of August 7, 2025[43]. - During Q2 2025, the Company repurchased 65,387 shares at an average price of $10.77 per share[43]. Branch Expansion and Market Presence - A new full-service branch was opened in Garden Grove, California, expanding the company's market presence[6]. - The Company operates twelve full-service branch offices and five loan production offices across California, Texas, and Nevada[48]. - The Company emphasizes serving small- and medium-sized businesses, particularly within Korean and other ethnic minority communities[48].