OP Bancorp
For the period ended Jun 30, 2025. Filed Aug 11, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 11, 2025
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Noninterest Expense
The following table presents the components of noninterest expense for the second quarters of 2025 and 2024:
| Three Months Ended June 30, | ||||
|---|---|---|---|---|
| ($ in thousands) | 2025 | 2024 | $ Change | % Change |
| Noninterest expense: | ||||
| Salaries and employee benefits | $9,075 | $7,568 | $1,507 | 20% |
| Occupancy and equipment | 1,584 | 1,660 | (76) | (5) |
| Data processing and communication | 306 | 530 | (224) | (42) |
| Professional fees | 418 | 406 | 12 | 3 |
| FDIC insurance and regulatory assessments | 506 | 378 | 128 | 34 |
| Promotion and advertising | 232 | 151 | 81 | 54 |
| Directors' fees | 198 | 178 | 20 | 11 |
| Foundation donation and other contributions | 636 | 539 | 97 | 18 |
| Other expenses | 1,082 | 779 | 303 | 39 |
| Total noninterest expense | $14,037 | $12,189 | $1,848 | 15% |
Noninterest expense for the second quarter of 2025 increased year-over-year, primarily due to higher salaries and employee benefits and other expenses, as well as increased FDIC insurance and regulatory assessments, partially offset by a reduction in data processing and communication.
Salaries and employee benefits for the second quarter of 2025 increased $1.5 million, or 20%, primarily due higher incentive accruals as well as staffing growth and annual merit-based salary adjustments.
Data processing and communication for the second quarter of 2025 decreased $224 thousand, or 42%, primarily due to contractual credits received following the conversion to a new core banking system in the fourth quarter of 2024. These savings are expected to continue in future periods, as the new system offers more cost-effective processing capabilities. Management anticipates that data processing and communication expense will remain at a lower run rate, contributing to improved operating efficiency.
FDIC insurance and regulatory assessments for the second quarter of 2025 increased $128 thousand, or 34%, primarily due to higher FDIC assessment charges. The increase was largely driven by growth in the Bank's total assets, which expanded the assessment base, along with higher assessment rates.
Other expenses for the second quarter of 2025 increased $303 thousand, or 39%, primarily due to higher credit-related and business development expenses.
The following table presents the components of noninterest expense for the first halves of 2025 and 2024:
| Six Months Ended June 30, | ||||
|---|---|---|---|---|
| ($ in thousands) | 2025 | 2024 | $ Change | % Change |
| Noninterest expense: | ||||
| Salaries and employee benefits | $17,851 | $15,409 | $2,442 | 16% |
| Occupancy and equipment | 3,165 | 3,315 | (150) | (5) |
| Data processing and communication | 602 | 1,017 | (415) | (41) |
| Professional fees | 825 | 801 | 24 | 3 |
| FDIC insurance and regulatory assessments | 993 | 752 | 241 | 32 |
| Promotion and advertising | 388 | 300 | 88 | 29 |
| Directors' fees | 378 | 335 | 43 | 13 |
| Foundation donation and other contributions | 1,192 | 1,079 | 113 | 10 |
| Other expenses | 2,457 | 1,338 | 1,119 | 84 |
| Total noninterest expense | $27,851 | $24,346 | $3,505 | 14% |
Noninterest expense for the first half of 2025 increased year-over-year, primarily due to higher salaries and employee benefits and other expenses, partially offset by a reduction in data processing and communication.
Salaries and employee benefits for the first half of 2025 increased $2.4 million, or 16%, primarily due higher staffing levels to support business growth, annual merit-based salary adjustments, and increased incentive accruals.
Data processing and communication for the first half of 2025 decreased $415 thousand, or 41%, primarily due to contractual credits received following the conversion to a new core banking system in the fourth quarter of 2024. These savings are expected to continue in future periods, as the new system offers more cost-efficient processing capabilities. Management anticipates that data processing and communication expense will remain at a lower run rate, contributing to improved operating efficiency.
Other expenses for the first half of 2025 increased $1.1 million, or 84%, primarily due to higher credit-related and business development expenses.
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