OP Bancorp(US:OPBK)2026-01-22 22:13Financial 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].