OP Bancorp

For the period ended Sep 30, 2026. Filed Nov 6, 2026.

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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, 2026 · Filed Nov 6, 2026

OPBK$14.76-0.1%Stored close · as of Nov 6, 2026

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Contents

11 — Derivative Financial Instruments

Note 11. Derivative Financial Instruments

The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. As of September 30, 2026, the Company anticipates reclassifying an estimated $103 thousand of pre-tax of deferred net gains from AOCI into earnings during the next 12 months. For the Company's accounting policy on derivatives, see Note 1. Significant Accounting Policies to the Consolidated Financial Statements in the 2025 Annual Report on Form 10-K.

The following table presents the notional amounts, fair values and classification on consolidated balance sheets of the Company's derivatives as of September 30, 2026 and December 31, 2025:

Derivative Assets · Derivative Liabilities
($ in thousands) · Notional Amount · Balance Sheet Location · Fair Value · Notional Amount · Balance Sheet Location · Fair Value
Derivatives designated as hedging instruments:
Cash flow hedges:
Interest rate products	$25,000	Other assets		$208	$50,000	Other liabilities	$175
Total derivatives designated as hedging instruments			$208			$175
Derivatives designated as hedging instruments:
Cash flow hedges:
Interest rate products	$—	Other assets		$—	$75,000	Other liabilities	$888
Total derivatives designated as hedging instruments			$—			$888

The following table presents the pre-tax changes in AOCI from cash flow hedges for the three and nine months ended September 30, 2026 and 2025:

($ in thousands)	Gains (Losses) Recognized in AOCI	Location of Gains (Losses) Reclassified from AOCI into Earnings	Amount of Gains (Losses) Reclassified from AOCI into Earnings
Interest rate products	$125	Interest expense on deposits	$(96)
Total	$125		$(96)
Interest rate products	$84	Interest expense on deposits	$31
Total	$84		$31
Interest rate products	$658	Interest expense on deposits	$(294)
Total	$658		$(294)
Interest rate products	$(548)	Interest expense on deposits	$91
Total	$(548)		$91

The tables below present a gross presentation, the effects of offsetting, and a net presentation of the Company's derivatives as of September 30, 2026 and December 31, 2025. The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the consolidated balance sheet:

Gross Amounts of Recognized Assets · Gross Amounts Offset in the Balance Sheet · Net Amounts of Assets presented in the Balance Sheet · Gross Amounts Not Offset in the Balance Sheet
($ in thousands) · Financial Instruments · Cash Collateral Received · Net Amount
Derivatives assets	$208	$—	$208	$—	$208	$—
Total	$208	$—	$208	$—	$208	$—
Derivatives assets	$—	$—	$—	$—	$—	$—
Total	$—	$—	$—	$—	$—	$—

Gross Amounts of Recognized Liabilities · Gross Amounts Offset in the Balance Sheet · Net Amounts of Liabilities presented in the Balance Sheet · Gross Amounts Not Offset in the Balance Sheet
($ in thousands) · Financial Instruments · Cash Collateral Posted · Net Amount
Derivatives liabilities	$175	$—	$175	$—	$175	$—
Total	$175	$—	$175	$—	$175	$—
Derivatives liabilities	$888	$—	$888	$—	$888	$—
Total	$888	$—	$888	$—	$888	$—

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