OP Bancorp

Provision for credit losses was a reversal of $149 thousand for the second quarter of 2026, compared with a provision expense of $1.2 million in the same period a year ago. The decrease was primarily attributable to lower qualitative reserve requirements, reflecting a reduced impact from loan growth due to a lower growth rate relative to the prior period and an improved economic outlook, as well as a smaller quantitative reserve build driven by slower loan growth and less adverse changes in historical loss factors compared with the prior year period. In addition, the provision benefited from a lower specific reserve requirement resulting from the sale of one nonaccrual loan.

Provision for credit losses was $263 thousand for the first half of 2026, compared with $1.9 million in the same period a year ago. The decrease was primarily driven by the same factors discussed above, including lower qualitative reserve requirements and a smaller quantitative reserve build. These favorable factors were partially offset by higher specific reserve requirements associated with individually evaluated loans.