OP Bancorp

Income tax expense was $2.6 million for the third quarter of 2026, compared with $3.0 million for the third quarter of 2025, primarily reflecting a lower effective tax rate, partially offset by higher pre-tax income. The effective income tax rate decreased to 25.3% from 30.7% in the prior-year period, primarily due to the absence of a discrete tax adjustment that was recorded in the third quarter of 2025 and return-to-provision adjustments associated with the prior-year tax returns.

Income tax expense was $8.4 million for the first nine months of 2026, compared with $7.2 million for the first nine months of 2025, primarily reflecting higher pre-tax income. The effective income tax rate decreased to 26.7% from 27.9% in the prior-year period, primarily due to the aforementioned adjustments.

We recorded net deferred tax assets of $15.0 million and $12.4 million as of September 30, 2026, and December 31, 2025, respectively. After evaluating all available positive and negative evidence, including recent financial performance, projected future taxable income, and tax planning strategies, we have concluded that it is more-likely-than-not that net deferred tax assets as of September 30, 2026, will be fully realized in future periods.