OP Bancorp
For the period ended Sep 30, 2025. Filed Nov 7, 2025.
View on SEC.govAbout this filing
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.
Sep 30, 2025 · Filed Nov 7, 2025
OPBK$14.76-0.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-11.
0001722010-25-000005
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsOverviewSelected Financial DataCritical Accounting Policies and EstimatesCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-07.
0001722010-25-000014
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsOverviewFinancial ReviewCritical Accounting Policies and EstimatesThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 38 previous paragraphs and 33 current paragraphs.
21 unchanged; 3 reworded; 9 added; 14 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 3 previous and 3 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (9)
Current report
The Board of Governors of the Federal Reserve System ("Federal Reserve") lowered the Federal Funds Rate target range from 3.75% to 4.00% on October 29, 2025, following its earlier cut in September. This marks the second consecutive rate reduction this year and reflects the Federal Reserve's response to a weakening labor market amid persistent inflationary pressures. The decision underscores the Fed Reserve's evolving stance toward supporting employment while maintaining price stability. However, the Federal Reserve have emphasized that further reductions are not guaranteed, and any additional moves will depend on incoming data and evolving economic condition. While markets had anticipated more easing, recent statements highlight the uncertainty surrounding future adjustments, particularly given the ongoing government shutdown that has delayed key economic reports. Political dynamics have further intensified, with increased pressure from the executive branch and recent changes to the composition of the Federal Open Market Committee. The current rate environment continues to influence lending activity, funding costs, and credit risk assessments across the financial sector. Additionally, heightened political uncertainty complicates the economic outlook, making it more challenging to anticipate the timing and magnitude of future rate adjustments. These dynamics present ongoing challenges for management in forecasting economic conditions and effectively pricing both loan products and longer-term deposit offerings.
Current report
The Company's net income for the third quarter of 2025 was $6.7 million, up $1.3 million, or 23%, compared with $5.4 million in the same period a year ago. The year-over-year increase was primarily driven by higher net interest income, partially offset by increases in noninterest expense, income tax expense and provision for credit losses. Net income for the first nine months of 2025 was $18.6 million, up $2.5 million, or 16%, compared with $16.1 million for the same period a year ago. The increase was primarily driven by higher net interest income, partially offset by increases in noninterest expense and provision for credit losses. The following were notable elements of the Company's performance for the periods presented:
Current report
•Net interest income and net interest margin: Third quarter 2025 net interest income increased to $20.3 million, up $3.8 million, or 23%, from the year ago quarter. Third quarter 2025 net interest margin expanded 31 basis points to 3.26%, For the first nine months of 2025, net interest income increased to $57.5 million, up $8.8 million, or 18%, and net interest margin expended 18 basis points to 3.17%.
Current report
•Profitability ratios: Third quarter 2025 ROA and ROE of 1.04% and 12.36%, respectively, were up year-over-year. ROA and ROE of 0.99% and 11.70%, respectively, for the first nine months of 2025 were also up year-over-year.
Current report
•Efficiency Ratios: Third quarter 2025 efficiency ratio of 55.68% improved 563 basis points from the same period in 2024. For the first nine months of 2025, efficiency ratio of 58.92% improved 216 basis points from the same period in 2024. The improvement in the efficiency ratios primarily reflected an increase in net interest income.
Current report
•Asset Growth: Total assets reached $2.61 billion as of September 30, 2025, up $248.2 million, or 10%, from December 31, 2024, primarily driven by an increase $112.6 million in CRE loans and an increase $78.1 million in home mortgage loans.
Current report
•Loans Growth: Gross loans were $2.15 billion, up $194.4 million, or 10%, from December 31, 2024, primarily reflecting growth in CRE and home mortgage loans.
Current report
•Deposits Growth: Total deposits were $2.27 billion, up $246.1 million, or 12%, from December 31, 2024, reflecting growth in time and money market and others deposits.
Removed paragraphs (14)
Previous report
The Board of Governors of the Federal Reserve System ("Federal Reserve") has maintained the Federal Funds Rate range at 4.25% to 4.50%, reflecting a continued pause in its monetary tightening cycle. While inflation has shown signs of moderation, the Federal Reserve has signaled a cautious approach, seeking to balance its dual mandate of achieving maximum employment and price stability. Recent commentary from policymakers indicates the potential for gradual rate cuts later in 2025, contingent upon further evidence of sustained disinflation and softening labor market conditions. The current rate environment continues to influence lending activity, funding costs, and credit risk assessments across the financial sector. Additionally, the volatile and uncertain political climate further complicates the economic outlook, making it increasingly difficult to anticipate the timing and magnitude of future rate adjustments. These factors present ongoing challenges for management in forecasting economic conditions and in effectively pricing both loan products and longer-term deposit offerings.
Previous report
The following significant items are of note as of or for the periods presented:
Previous report
•Total assets were $2.56 billion, up $197.6 million, or 8%, from $2.37 billion.
Previous report
•Gross loans were $2.07 billion, up $114.7 million, or 6%, from $1.96 billion.
Previous report
•Total deposits were $2.25 billion, up $227.4 million, or 11%, from $2.03 billion.
Previous report
•Shareholders’ equity was $213.7 million, up $8.7 million, or 4%, from $205.0 million.
Previous report
For the three months ended June 30, 2025 compared to three months ended June 30, 2024
Previous report
•Net interest income increased to $19.7 million, up $3.5 million, or 22%, from $16.2 million.
Previous report
•Net income increased to $6.3 million or $0.42 diluted EPS, up $897 thousand, or 17%, from $5.4 million or $0.36 diluted EPS.
Previous report
For the six months ended June 30, 2025 compared to six months ended June 30, 2024
Previous report
•Net interest income increased to $37.1 million, up $5.0 million, or 15%, from $32.2 million.
Previous report
•Net income increased to $11.9 million or $0.79 diluted EPS, up $1.2 million, or 12%, from $10.7 million or $0.70 diluted EPS.
Reworded paragraphs (3)
Previous wording
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and the related notes thereto contained in this Report. Some of the information contained in this discussion and analysis or set forth elsewhere in this Report, including information with respect to our plans and strategy for our business, includes forward-looking statements that involve risks and uncertainties. You should review the sections titled “Cautionary Note Regarding Forward-Looking Statements” and “Part II, Item 1A. Risk Factors” for a discussion of forward-looking statements and important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
Current wording
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and the related notes thereto contained in this Report. Some of the information contained in this discussion and analysis or set forth elsewhere in this Report, including information with respect to our plans and strategy for our business, includes forward-looking statements that involve risks and uncertainties. You should review “Part II, Item 1A. Risk Factors” for a discussion of forward-looking statements and important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
Previous wording
OP Bancorp (referred to herein on an unconsolidated basis as "OP Bancorp" and on a consolidated basis as the "Company") is a bank holding company headquartered in Los Angeles, California. Our commercial community banking activities are operated through Open Bank ("Open Bank" or the "Bank"), our wholly owned banking subsidiary, and we do not conduct material business operations other than through the Bank. We offer commercial banking services to small and medium-sized businesses, their owners and retail customers primarily in the Korean-American communities within our primary market areas.
Current wording
OP Bancorp (referred to herein on an unconsolidated basis as "OP Bancorp" and on a consolidated basis as the "Company") is a bank holding company headquartered in Los Angeles, California. Our commercial community banking activities are operated through Open Bank ("Open Bank" or the "Bank"), our wholly owned banking subsidiary, and we do not conduct material business operations other than through the Bank. We offer commercial banking services to small and medium-sized businesses, their owners and retail customers primarily in the Korean-American communities within our primary market areas. We currently operate twelve full service branches: nine branches across Los Angeles and Orange Counties in California, as well as one branch each in Santa Clara, California; Carrollton, Texas; and Las Vegas, Nevada. Additionally, we maintain five loan production offices located in Pleasanton, California; Atlanta, Georgia; Aurora, Colorado; Lynnwood, Washington; and Fairfax, Virginia.
Previous wording
Our results of operations depend primarily on our net interest income, which represents the interest we earn on loans and related products, reduced by the interest we pay on deposits and other borrowings. In addition to our net interest income, we derive earnings from fee income we receive in connection with our deposits, and from gains on the sale and service of SBA loans. Our major operating expenses are the salaries and related benefits we pay our management and staff, and the rent we pay on our leased properties. We rely primarily on locally-generated deposits, mostly from the Korean-American market within California, to fund our loan activities. We currently operate nine branches in Los Angeles and Orange Counties in California, one branch in Santa Clara, California, one branch in Carrollton, Texas and one branch near Las Vegas, Nevada. We have five loan production offices in Pleasanton, California, Atlanta, Georgia, Aurora, Colorado, Lynnwood, Washington, and Fairfax, Virginia.
Current wording
Our results of operations depend primarily on our net interest income, which represents the interest we earn on loans and related products, reduced by the interest we pay on deposits and other borrowings. In addition to our net interest income, we derive earnings from fee income we receive in connection with our deposits, and from gains on the sale and service of SBA loans. Our major operating expenses are the salaries and related benefits we pay our management and staff, and the rent we pay on our leased properties. We rely primarily on locally-generated deposits, mostly from the Korean-American market within California, to fund our loan activities.