OP Bancorp
For the period ended Sep 30, 2026. Filed Nov 6, 2026.
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, 2026 · Filed Nov 6, 2026
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 2026-06-30; filed 2026-08-07.
0001722010-26-000020
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsOverviewFinancial ReviewCritical Accounting Policies and EstimatesCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-06.
0001722010-26-000025
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 25 previous paragraphs and 24 current paragraphs.
10 unchanged; 12 reworded; 1 added; 3 removed; 0 previous and 1 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 (1)
Current report
The CBLR framework is an optional regulatory capital framework that allows qualifying community banking organizations to use a simplified leverage ratio framework in lieu of generally applicable risk-based and leverage capital requirements. Effective September 30, 2026, the Bank elected to use the CBLR framework and has updated its regulatory capital disclosures accordingly. See Note 12. Regulatory Capital Matters to Consolidated Financial Statement in this Form 10-Q and MD&A. Financial Condition. Capital Requirements for additional information.
Removed paragraphs (3)
Previous report
In May 2026, the SEC issued proposed rule amendments that, if adopted, would permit public companies to elect semiannual reporting in lieu of quarterly reporting and would simplify the public company filer status framework while expanding certain reporting accommodations available to smaller issuers. The proposals remain subject to the SEC rulemaking process and public comment. The Company is monitoring these developments and evaluating their potential impact on its reporting and compliance obligations.
Previous report
The Community Bank Leverage Ratio (“CBLR”) framework is an optional regulatory capital framework that allows qualifying community banking organizations to use a simple leverage ratio rather than calculating certain risk-based capital ratios. The Company plans to elect the CBLR framework beginning in the third quarter of 2026 and believes the election will simplify regulatory capital reporting and compliance requirements while remaining appropriate for the Company’s capital and risk profile.
Reworded paragraphs (12)
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 Form 10-Q. Some of the information contained in this discussion and analysis or set forth elsewhere in this Form 10-Q, 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.
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 Form 10-Q and in our 2025 Annual Report on Form 10-K. Some of the information contained in this discussion and analysis or set forth elsewhere in this Form 10-Q, including information with respect to our plans and strategy for our business, includes forward-looking statements that involve risks and uncertainties. See "Forward- Looking Statements"in this Form 10-Q.
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. 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. In addition,we have one loan production office in Bellevue, Washington, which we opened in May 2026. During the first half of 2026, we closed five loan production offices due to limited market demand, including offices in Pleasanton, California; Atlanta, Georgia; Aurora, Colorado; and Fairfax, Virginia in May 2026, and Lynnwood, Washington in June 2026.
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. In addition, we have one loan production office in Bellevue, Washington, which we opened in May 2026. During the first nine months of 2026, we closed five loan production offices due to limited market demand, including offices in Pleasanton, California; Atlanta, Georgia; Aurora, Colorado; and Fairfax, Virginia in May 2026, and Lynnwood, Washington in June 2026.
Previous wording
Our results of operations depend primarily on 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 including our senior subordinated note. In addition to net interest income, we derive earnings from fee income we receive in connection with our deposits, and from gains on sale and service of SBA loans. Our major operating expenses are salaries and related benefits we pay our management and staff, and 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.
Current wording
Our results of operations depend primarily on 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 including our outstanding subordinated note. In addition to net interest income, we derive earnings from fee income we receive in connection with our deposits, and from gains on sale and service of SBA loans. Our major operating expenses are salaries and related benefits we pay our management and staff, and 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.
Previous wording
The Board of Governors of the Federal Reserve System ("Federal Reserve") maintained the Federal Funds Rate target range at 3.50% to 3.75% at its July 29, 2026 meeting, continuing its pause in monetary policy adjustments. The Federal Reserve indicated that future policy decisions will remain dependent on incoming economic data and evolving economic conditions, including inflation trends, labor market conditions, economic growth, and broader uncertainties. The current interest rate environment continues to influence loan demand, deposit pricing, funding costs, and credit quality trends across the banking industry. Economic uncertainty and potential for future changes in monetary policy continue to present challenges in forecasting interest rate movements and economic conditions, which may affect the Company's balance sheet management strategies and its ability to effectively price loans and deposit products.
Current wording
The Board of Governors of the Federal Reserve System ("Federal Reserve") increased the Federal Funds Rate target range by 25 basis points to 3.75% to 4.00% at its September 16, 2026 meeting, citing elevated inflation amid continued solid economic activity and resilient domestic spending. The Federal Reserve indicated that the policy action was intended to support a timelier return of inflation to its 2% objective. The current interest rate environment continues to influence loan demand, deposit pricing, funding costs, and credit quality trends across the banking industry. Uncertainty regarding future monetary policy and economic conditions may affect the Company's balance sheet management strategies and its ability to effectively price loans and deposit products.
Previous wording
Net income for the second quarter of 2026 was $8.0 million, up $1.6 million, or 26%, compared with $6.3 million for the same period in 2025. For the first half of 2026, net income was $15.2 million, up $3.3 million, or 28%, compared with $11.9 million for the same period in 2025. The following were notable elements of the Company's performance for the periods presented:
Current wording
Net income for the third quarter of 2026 was $7.8 million, up $1.1 million, or 16%, compared with $6.7 million for the same period in 2025. For the first nine months of 2026, net income was $23.0 million, up $4.4 million, or 24%, compared with $18.6 million for the same period in 2025. The following were notable elements of the Company's performance for the periods presented:
Previous wording
•Net interest income and net interest margin: Second quarter 2026 net interest income increased to $20.1 million, up $347 thousand, or 2%, from the year ago quarter, while net interest margin decreased 15 basis points to 3.08%. For the first half of 2026, net interest income increased to $40.6 million, up $3.5 million, or 9%, from the year ago period, and net interest margin expanded one basis point to 3.13%.
Current wording
•Net interest income and net interest margin: Third quarter 2026 net interest income increased to $22.2 million, up $1.9 million, or 9%, from the year ago quarter, while net interest margin increased one basis point to 3.27%. For the first nine months of 2026, net interest income increased to $62.8 million, up $5.3 million, or 9%, from the prior year period, and net interest margin expanded one basis point to 3.18%.
Previous wording
•Profitability ratios: Second quarter 2026 ROAA and ROAE increased to 1.18% and 13.61%, respectively, up 18 and 164 basis points from the same period in 2025. For the first half of 2026, ROAA and ROAE increased to 1.13% and 13.09%, respectively, up 17 and 173 basis points from the year ago period.
Current wording
•Profitability ratios: Third quarter 2026 ROAA and ROAE increased to 1.11% and 12.94%, respectively, up seven and 58 basis points from the same period in 2025. For the first nine months of 2026, ROAA and ROAE increased to 1.13% and 13.03%, respectively, up 14 and 133 basis points from the prior year period.
Previous wording
•Efficiency ratios: Second quarter 2026 efficiency ratio was 57.64%, an improvement of 161 basis points from the same period in 2025, primarily reflecting higher noninterest income. For the first half of 2026, efficiency ratio was 57.80%, an improvement of 285 basis points from the same period in 2025, primarily due to growth in net interest income.
Current wording
•Efficiency ratios: Third quarter 2026 efficiency ratio was 56.40%, an increase of 72 basis points from the same period in 2025, primarily reflecting higher noninterest expense. For the first nine months of 2026, the efficiency ratio was 57.31%, an improvement of 161 basis points from the same period in 2025, primarily due to growth in net interest income and noninterest income during such period.
Previous wording
•Asset growth: Total assets were $2.74 billion as of June 30, 2026, up $94.1 million, or 4%, from December 31, 2025, primarily driven by a $65.4 million increase in gross loans.
Current wording
•Asset growth: Total assets were $2.81 billion as of September 30, 2026, up $159.2 million, or 6%, from December 31, 2025, primarily driven by a $94.2 million increase in gross loans and a $75.6 million increase in cash and cash equivalents.
Previous wording
•Loan growth: Gross loans were $2.26 billion, up $65.4 million, or 3%, from December 31, 2025, primarily reflecting $57.9 million of CRE loan growth.
Current wording
•Loan growth: Gross loans were $2.29 billion, up $94.2 million, or 4%, from December 31, 2025, primarily reflecting $66.8 million of CRE loan growth.
Previous wording
•Deposit growth: Total deposits were $2.37 billion, up $87.8 million, or 4%, from December 31, 2025, reflecting growth in noninterest-bearing and money market and other deposits.
Current wording
•Deposit growth: Total deposits were $2.43 billion, up $149.9 million, or 7%, from December 31, 2025, reflecting growth of $90.1 million in time deposits and $41.4 million in money market and others.
Previous wording
The Company's significant accounting policies are described in Note 1. Significant Accounting Policies to Consolidated Financial Statements in the 2025 Annual Report on Form 10-K. Certain policies involve critical accounting estimates requiring management judgment, and actual results may differ materially under different assumptions. Allowance for credit losses is considered critical to the Company's Consolidated Financial Statements, and there have been no material changes to our critical accounting policies and estimates since those described in our 2025 Annual Report on Form 10-K.
Current wording
The Company's significant accounting policies are described in Note 1. Significant Accounting Policies to Consolidated Financial Statements in the 2025 Annual Report on Form 10-K. Certain policies involve critical accounting estimates requiring management judgment, and actual results may differ materially under different assumptions. Allowance for credit losses is considered critical to the Company's Consolidated Financial
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Statements, and there have been no material changes to our critical accounting policies and estimates since those described in our 2025 Annual Report on Form 10-K.