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
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Allowance for Credit Losses
The Company maintains its allowance for credit losses at a level it believes is adequate to absorb estimated future credit losses in accordance with GAAP. For further details on the policies, methodologies and significant judgments used in determining the allowance, refer to Item 7. MD&A. Critical Accounting Estimates, and Item 8. Financial Statements. Note 1. Business and Basis of Presentation to the Consolidated Financial Statements, in the 2025 Annual Report on Form 10-K, as well as Note 3. Loans and Allowance for Credit Losses on Loans to the Consolidated Financial Statements in this Form 10-Q.
The allowance for credit losses on loans was $28.8 million as of September 30, 2026, an increase of $861 thousand from $28.0 million as of December 31, 2025. The increase was primarily driven by higher general reserve requirements resulting from adverse credit migration, as well as specific reserves established on additional nonaccrual loans identified since December 31, 2025. These increases were partially offset by lower qualitative reserve requirements, reflecting improvements in certain qualitative factors and economic outlook.
Analysis of the Allowance for Credit Losses
The following tables summarize the activity in the allowance for credit losses on loans by loan segments for the three and nine months ended September 30, 2026 and 2025:
| As of and for the Three Months Ended September 30, | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2026 · 2025 | ||||||||||||||
| ($ in thousands) · Beginning · (Reversal)Provision · Net Recoveries (Charge-offs) · Ending · Beginning · Provision (Reversal) · Net (Charge-offs) Recoveries · Ending | ||||||||||||||
| CRE | $11,190 | $1,494 | $— | $12,684 | $8,970 | $736 | $— | $9,706 | ||||||
| SBA—real estate | 7,620 | (467) | (834) | 6,319 | 5,899 | (13) | — | 5,886 | ||||||
| SBA—non- real estate | 711 | (169) | 101 | 643 | 499 | 31 | (25) | 505 | ||||||
| C&I | 1,582 | 33 | (88) | 1,527 | 1,459 | 227 | (168) | 1,518 | ||||||
| Home mortgage | 6,995 | 666 | — | 7,661 | 9,459 | 225 | — | 9,684 | ||||||
| Consumer | 2 | — | — | 2 | — | — | $— | — | ||||||
| Total | $28,100 | $1,557 | $(821) | (821) | $28,836 | $26,286 | $1,206 | $(193) | $27,299 | |||||
| Gross loans | $2,287,829 | $2,151,217 | ||||||||||||
| Average gross loans | $2,296,947 | $2,107,081 | ||||||||||||
| Net charge-offs to average gross loans (1) | 0.14% | 0.04% | ||||||||||||
| Allowance for credit losses to gross loans | 1.26% | 1.27% | ||||||||||||
| As of and for the Nine Months Ended September 30, | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2026 · 2025 | ||||||||
| ($ in thousands) | Beginning | Provision (Reversal) | Net Recoveries (Charge-offs) | Ending | Beginning | (Reversal)Provision | Net (Charge-offs) Recoveries | Ending |
| CRE | $10,427 | $2,243 | $14 | $12,684 | $9,290 | $465 | $(49) | $9,706 |
| SBA—real estate | 6,385 | 721 | (787) | 6,319 | 5,557 | 742 | (413) | 5,886 |
| SBA—non- real estate | 587 | 97 | (41) | 643 | 418 | 103 | (16) | 505 |
| C&I | 1,611 | 67 | (151) | 1,527 | 1,844 | (250) | (76) | 1,518 |
| Home mortgage | 8,956 | (1,295) | — | 7,661 | 7,684 | 2,091 | (91) | 9,684 |
| Consumer | 9 | (7) | — | 2 | 3 | (3) | $— | — |
| Total | $27,975 | $1,826 | $(965) | $28,836 | $24,796 | $3,148 | $(645) | $27,299 |
| Gross loans | $2,287,829 | $2,151,217 | ||||||
| Average gross loans | $2,241,959 | $2,060,689 | ||||||
| Net charge-offs to average gross loans (1) | 0.06% | 0.04% | ||||||
| Allowance for credit losses to gross loans | 1.26% | 1.27% | ||||||
(1) Annualized.
The following table presents an allocation of the allowance for credit losses on loans by portfolio as of September 30, 2026 and December 31, 2025:
| September 30, 2026 · December 31, 2025 · Change | ||||||||
|---|---|---|---|---|---|---|---|---|
| Allowance Allocation · % of Gross Loans · Allowance Allocation · % of Gross Loans | ||||||||
| ($ in thousands) · Amount · % to Total Allowance · Amount · % to Total Allowance · $ · % | ||||||||
| CRE | $12,684 | 44% | 1.06% | $10,427 | 37% | 0.92% | $2,257 | 22% |
| SBA—real estate | 6,319 | 22 | 2.28% | 6,385 | 23 | 2.64% | (66) | (1)% |
| SBA—non- real estate | 643 | 2 | 2.60% | 587 | 2 | 2.61% | 56 | 10% |
| C&I | 1,527 | 5 | 0.82% | 1,611 | 6 | 0.73% | (84) | (5)% |
| Home mortgage | 7,661 | 27 | 1.28% | 8,956 | 32 | 1.56% | (1,295) | (14)% |
| Consumer | 2 | 0 | 1.65% | 9 | 0 | 0.67% | (7) | (78)% |
| Total | $28,836 | 100% | 1.26% | $27,975 | 100% | 1.28% | $861 | 3% |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.