OP Bancorp
For the period ended Sep 30, 2025. Filed Nov 7, 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.
Sep 30, 2025 · Filed Nov 7, 2025
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Noninterest Income
While interest income remains the largest single component of total revenues, noninterest income is also an important component. A portion of our noninterest income is associated with SBA lending activity, consisting of gains on the sale of loans sold in the secondary market and servicing income from loans sold with servicing retained. Other sources of noninterest income include service charges on deposit.
The following table presents the components of noninterest income for the third quarters of 2025 and 2024:
| Three Months Ended September 30, | ||||
|---|---|---|---|---|
| ($ in thousands) | 2025 | 2024 | $ Change | % Change |
| Noninterest income: | ||||
| Service charges on deposits | $725 | $889 | $(164) | (18)% |
| Loan servicing fees, net of amortization | 724 | 693 | 31 | 4 |
| Gains on sale of loans | 2,037 | 2,088 | (51) | (2) |
| Other income | 644 | 570 | 74 | 13 |
| Total noninterest income | $4,130 | $4,240 | $(110) | (3)% |
Noninterest income for the third quarter of 2025 slightly decreased year-over-year, primarily due to lower service charges on deposits.
Service charges on deposit decreased $164 thousand, or 18%, primarily driven by the closure of certain currency exchange-related accounts.
The following table presents the components of noninterest income for the first nine months of 2025 and 2024:
| Nine Months Ended September 30, | ||||
|---|---|---|---|---|
| ($ in thousands) | 2025 | 2024 | $ Change | % Change |
| Noninterest income: | ||||
| Service charges on deposits | $2,742 | $2,294 | $448 | 20% |
| Loan servicing fees, net of amortization | 2,631 | 2,040 | 591 | 29 |
| Gains on sale of loans | 5,497 | 6,116 | (619) | (10) |
| Other income | 2,044 | 1,560 | 484 | 31 |
| Total noninterest income | $12,914 | $12,010 | $904 | 8% |
Noninterest income for the first nine months of 2025 increased year-over-year, primarily due to higher loan servicing fees and service charges on deposits, partially offset by lower gains on sale of loans.
Service charges on deposit increased $448 thousand, or 20%, primarily driven by higher deposit analysis fees. This reflects continued growth in the number of business customer accounts, partially offset by the recent closure of certain currency exchange-related accounts.
Loan servicing fees, net of amortization, increased $591 thousand, or 29%, primarily due to lower amortization expense on servicing assets. The decrease in amortization was driven by reduced loan payoff activity, which resulted in fewer servicing rights being amortized during the period. A smaller servicing asset balance, declining from $10.9 million as of September 30, 2024 to $10.4 million as of September 30, 2025, also contributed to the lower amortization, further supporting the overall increase in net loan servicing fees.
Gains on sale of loans decreased $619 thousand, or 10%, primarily due to lower average premium rates. The Bank sold $93.2 million in SBA loans at an average premium of 7.26%, compared to sale of $92.5 million at an average premium rate of 8.02%.
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