OP Bancorp Reports Net Income for 2025 First Quarter of $5.6 Million and Diluted Earnings Per Share of $0.37

Business Wire

Thu, Apr 24, 2025, 2:40 PM 5 min read

Financial Results:
- Net income of $5.6 million, compared to $5.0 million
- Diluted earnings per share of $0.37, compared to $0.33
- Net interest income of $17.4 million, compared to $16.9 million
- Net interest margin of 3.01%, compared to 2.96%
- Provision for credit losses of $0.7 million, compared to $1.5 million
- Total assets of $2.51 billion, compared to $2.37 billion
- Gross loans of $2.04 billion, compared to $1.96 billion
- Total deposits of $2.19 billion, compared to $2.03 billion
Credit Quality:
- Allowance for credit losses to gross loans of 1.24%, compared to 1.27%
- Net charge-offs⁽¹⁾ to average gross loans⁽²⁾ of 0.02%, compared to 0.00%
- Loans past due 30-89 days to gross loans of 0.32%, compared to 0.46%
- Nonperforming loans to gross loans of 0.51%, compared to 0.40%
- Criticized loans⁽³⁾ to gross loans of 1.13%, compared to 1.00%
Capital Levels:
- Remained well-capitalized with a Common Equity Tier 1 ("CET1") ratio of 11.08%
- Book value per common share increased to $14.09, compared to $13.83
- Paid quarterly cash dividend of $0.12 per share for the periods

^{_______________________________________
(1)} Annualized.
⁽²⁾ Includes loans held for sale.
⁽³⁾ Includes Special Mention, Substandard, Doubtful, and Loss categories.

LOS ANGELES, April 24, 2025--(BUSINESS WIRE)--OP Bancorp (the "Company") (NASDAQ: OPBK), the holding company of Open Bank (the "Bank"), today reported its financial results for the first quarter of 2025. Net income for the first quarter of 2025 was $5.6 million, or $0.37 per diluted common share, compared with $5.0 million, or $0.33 per diluted common share, for the fourth quarter of 2024, and $5.2 million, or $0.34 per diluted common share, for the first quarter of 2024.

Min Kim, President and Chief Executive Officer:

"We continued to grow our loans by 4.4% and deposits by 8.0% in this quarter while improving net interest margin by 5 basis points. This double-digit annualized growth in loans and deposits, combined with the net interest margin expansion, resulted in our strong performance for this quarter, reporting a 12% increase in diluted earnings per share over the previous quarter," said Min Kim, President and Chief Executive Officer. "While recently heightened uncertainties about economic conditions and interest rate directions are expected to affect the banking environment in the next few quarters, we remain optimistic about our future growth and performance and will continue to focus on executing our strategic goals."

SELECTED FINANCIAL HIGHLIGHTS


($ in thousands, except per share data)	As of and For the Quarter									% Change 1Q2025 vs.
($ in thousands, except per share data)		1Q2025			4Q2024			1Q2024		4Q2024		1Q2024
Selected Income Statement Data:
Net interest income	$	17,418		$	16,929		$	15,979		2.9	%	9.0	%
Provision for credit losses		736			1,547			145		(52.4	)	407.6
Noninterest income		4,816			4,417			3,586		9.0		34.3
Noninterest expense		13,814			13,133			12,157		5.2		13.6
Income tax expense		2,124			1,695			2,037		25.3		4.3
Net income		5,560			4,971			5,226		11.8		6.4
Diluted earnings per share		0.37			0.33			0.34		12.1		8.8
Selected Balance Sheet Data:
Gross loans	$	2,043,885		$	1,956,852		$	1,804,987		4.4	%	13.2	%
Total deposits		2,189,871			2,027,285			1,895,411		8.0		15.5
Total assets		2,512,971			2,366,013			2,234,520		6.2		12.5
Average loans⁽¹⁾		2,005,044			1,947,653			1,808,932		2.9		10.8
Average deposits		2,083,890			2,029,855			1,836,331		2.7		13.5
Credit Quality:
Nonperforming loans	$	10,412		$	7,820		$	4,343		33.1	%	139.7	%
Nonperforming loans to gross loans		0.51	%		0.40	%		0.24	%	0.11	%p	0.27	%p
Criticized loans⁽²⁾ to gross loans		1.13			1.00			0.64		0.13		0.49
Net charge-offs⁽³⁾ to average gross loans⁽¹⁾		0.02			0.00			0.01		0.02		0.01
Allowance for credit losses to gross loans		1.24			1.27			1.23		(0.03	)	0.01
Allowance for credit losses to nonperforming loans		244			317			510		(73	)	(266	)
Financial Ratios:
Return on average assets⁽³⁾		0.92	%		0.84	%		0.96	%	0.08	%p	(0.04	)%p
Return on average equity⁽³⁾		10.73			9.75			10.83		0.98		(0.10	)
Net interest margin⁽³⁾		3.01			2.96			3.06		0.05		(0.05	)
Efficiency ratio⁽⁴⁾		62.13			61.52			62.14		0.61		(0.01	)
Common equity tier 1 capital ratio		11.08			11.35			12.34		(0.27	)	(1.26	)
Leverage ratio		9.22			9.27			9.65		(0.05	)	(0.43	)
Book value per common share	$	14.09		$	13.83		$	13.00		1.9	%	8.4	%

(1)	Includes loans held for sale.
(2)	Includes Special Mention, Substandard, Doubtful, and Loss categories.
(3)	Annualized.
(4)	Represents noninterest expense divided by the sum of net interest income and noninterest income.

INCOME STATEMENT HIGHLIGHTS

Net Interest Income and Net Interest Margin


($ in thousands)	For the Three Months Ended						% Change 1Q2025 vs.
($ in thousands)		1Q2025		4Q2024		1Q2024	4Q2024		1Q2024
Interest Income
Interest income	$	34,859	$	35,051	$	32,913	(0.5	)%	5.9	%
Interest expense		17,441		18,122		16,934	(3.8	)	3.0
Net interest income	$	17,418	$	16,929	$	15,979	2.9	%	9.0	%


($ in thousands)	For the Three Months Ended												Yield Change 1Q2025 vs.
	1Q2025				4Q2024				1Q2024				Yield Change 1Q2025 vs.
	Interest and Fees		Yield/Rate⁽¹⁾		Interest and Fees		Yield/Rate⁽¹⁾		Interest and Fees		Yield/Rate⁽¹⁾		4Q2024		1Q2024
Interest-earning Assets:
Loans	$	31,689	6.39	%	$	31,729	6.49	%	$	30,142	6.69	%	(0.10	)%	(0.30	)%
Total interest-earning assets		34,859	6.04			35,051	6.12			32,913	6.32		(0.08	)	(0.28	)
Interest-bearing Liabilities:
Interest-bearing deposits		16,608	4.31			17,182	4.60			15,675	4.77		(0.29	)	(0.46	)
Total interest-bearing liabilities		17,441	4.31			18,122	4.58			16,934	4.76		(0.27	)	(0.45	)
Ratios:
Net interest income / interest rate spreads		17,418	1.73			16,929	1.54			15,979	1.56		0.19		0.17
Net interest margin			... 3.01				2.96				3.06		0.05		(0.05	)
Total deposits / cost of deposits		16,608	3.23			17,182	3.37			15,675	3.43		(0.14	)	(0.20	)
Total funding liabilities / cost of funds		17,441	3.27			18,122	3.41			16,934	3.50		(0.14	)	(0.23	)

(1) Annualized.


($ in thousands)	For the Three Months Ended															Yield Change 1Q2025 vs.
	1Q2025					4Q2024					1Q2024					Yield Change 1Q2025 vs.
	Interest & Fees			Yield⁽¹⁾		Interest & Fees			Yield⁽¹⁾		Interest & Fees			Yield⁽¹⁾		4Q2024		1Q2024
Loan Yield Component:
Contractual interest rate	$	31,240		6.30	%	$	31,406		6.42	%	$	28,877		6.41	%	(0.12	)%	(0.11	)%
Accretion of SBA loan discount⁽²⁾		683		0.14			813		0.17			881		0.20		(0.03	)	(0.06	)
Amortization of net deferred fees		(106	)	(0.02	)		(47	)	(0.01	)		54		0.01		(0.01	)	(0.03	)
Amortization of premium		(490	)	(0.10	)		(363	)	(0.07	)		(428	)	(0.10	)	(0.03	)	—
Net interest recognized on nonaccrual loans		43		0.01			(232	)	(0.05	)		492		0.11		0.06		(0.10	)
Prepayment penalty income and other fees⁽³⁾		319		0.06			152		0.03			266		0.06		0.03		—
Yield on loans	$	31,689		6.39	%	$	31,729		6.49	%	$	30,142		6.69	%	(0.10	)%	(0.30	)%

(1)	Annualized.
(2)	Includes discount accretion from SBA loan payoffs of $329 thousand, $329 thousand and $345 thousand for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024, respectively.
(3)	Includes prepayment penalty income of $45 thousand, $45 thousand and $115 thousand for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024, respectively, from Commercial Real Estate ("CRE") loans.

First Quarter 2025 vs. Fourth Quarter 2024

Net interest income increased $489 thousand, or 2.9%, primarily due to lower interest expense on interest-bearing deposits, partially offset by lower interest income on loans as our deposit costs repriced faster than our loan yields following the Federal Reserve’s rate cuts from September 2024 through December 2024. Net interest margin was 3.01%, an increase of 5 basis points from 2.96%.

A $574 thousand decrease in interest expense on interest-bearing deposits was primarily due to a 29 basis point decrease in average cost of interest-bearing deposits.

A $40 thousand decrease in interest income on loans was primarily due to a 10 basis point decrease in average yield on loans.

First Quarter 2025 vs. First Quarter 2024

Net interest income increased $1.4 million, or 9.0%, as higher interest income from a $240.6 million, or 11.5%, increase in average earning assets (loans and interest-bearing deposits in other banks) surpassed higher interest expense from a $210.3 million, or 14.7%, increase in average interest-bearing liabilities (deposits and borrowings). Net interest margin, however, decreased 5 basis points to 3.01% from 3.06%, primarily due to a faster increase in average interest-bearing liabilities over average earnings assets and a faster repricing in deposits costs over loan yields.

A $1.5 million increase in interest income on loans was primarily due to a $196.1 million, or 10.8%, increase in average balance, partially offset by a 30 basis point decrease in average yield.

A $383 thousand increase in interest income on interest-bearing deposits in other banks was primarily due to a $51.0 million increase in average balance, partially offset by a 93 basis point decrease in average yield.

A $933 thousand increase in interest expense on interest-bearing deposits was primarily due to a $240.0 million, or 18.2%, increase in average balance, partially offset by a 46 basis point decrease in average cost.

A $426 thousand decrease in interest expense on borrowings was primarily due to a $30 million, or 27.4%, decrease in average balance and a 38 basis point decrease in average cost.

Provision for Credit Losses


($ in thousands)	For the Three Months Ended
($ in thousands)		1Q2025		4Q2024			1Q2024
Provision for credit losses on loans	$	687	$	1,859		$	193
Provision for (reversal of) credit losses on off-balance sheet exposure		49		(312	)		(48	)
Total provision for credit losses	$	736	$	1,547		$	145

First Quarter 2025 vs. Fourth Quarter 2024

The Company recorded $736 thousand in total provision for credit losses, a decrease of $811 thousand, compared with $1.5 million. Provision for credit losses on loans decreased $1.2 million and provision for credit losses on off-balance sheet exposure increased $361 thousand.

Provision for credit losses on loans of $687 thousand was primarily due to an $87.0 million, or 4.4%, increase in loan balances. Home mortgage and CRE loans increased $43.0 million, or 4.4%, and $50.0 million, or 9.8%, respectively, in the first quarter of 2025.

Provision of credit losses on off-balance sheet exposure of $49 thousand was primarily due to an increase in unfunded balance of loans.

First Quarter 2025 vs. First Quarter 2024

The Company recorded $736 thousand in total provision for credit losses, an increase of $591 thousand, compared with $145 thousand. Provision for credit losses on loans increased $494 thousand and provision for credit losses on off-balance sheet exposure increased $97 thousand.

Noninterest Income


($ in thousands)	For the Three Months Ended						% Change 1Q2025 vs.
($ in thousands)		1Q2025		4Q2024		1Q2024	4Q2024		1Q2024
Noninterest Income
Service charges on deposits	$	1,000	$	967	$	612	3.4	%	63.4	%
Loan servicing fees, net of amortization		1,007		858		772	17.4		30.4
Gain on sale of loans		2,019		2,197		1,703	(8.1	)	18.6
Other income		790		395		499	100.0		58.3
Total noninterest income	$	4,816	$	4,417	$	3,586	9.0	%	34.3	%

First Quarter 2025 vs. Fourth Quarter 2024

Noninterest income increased $399 thousand, or 9.0%, primarily due to higher other income and loan servicing fees, partially offset by lower gain on sale of loans.

Other income was $790 thousand, an increase of $395 thousand from $395 thousand, primarily due to an increase in credit related fees collected and a decrease in unrealized loss of CRA-qualified mutual funds driven by market interest rate changes.

Loan servicing fees, net of amortization, were $1.0 million, an increase of $149 thousand from $858 thousand, primarily due to a decrease in servicing fee amortization driven by lower loan payoffs in loan servicing portfolio.

Gain on sale of loans was $2.0 million, a decrease of $178 thousand from $2.2 million, primarily due to a lower sold amount partially offset by a higher average premium on sales. The Bank sold $31.1 million in SBA loans at an average premium rate of 8.08%, compared to the sale of $34.7 million at an average premium rate of 7.82%.

First Quarter 2025 vs. First Quarter 2024

Noninterest income increased $1.2 million, or 34.3%, primarily due to higher service charges on deposits, loan servicing fees, gain on sale of loans, and other income.

Service charges on deposits were $1.0 million, an increase of $388 thousand from $612 thousand, primarily due to an increase in deposit analysis fees from an increase in the number of analysis accounts.

Loan servicing fees were $1.0 million, an increase of $235 thousand from $772 thousand, primarily due to a decrease in servicing fee amortization driven by lower loan payoffs in loan servicing portfolio.

Gain on sale of loans was $2.0 million, an increase of $316 thousand from $1.7 million, primarily due to a higher sold amount partially offset by a lower average premium rate. The Bank sold $31.1 million in SBA loans at an average premium rate of 8.08%, compared to the sale of $24.8 million at an average premium rate of 8.33%.

Other income was $790 thousand, an increase of $291 thousand from $499 thousand, primarily due to an increase in credit related fees collected and a decrease in unrealized loss of CRA-qualified mutual fund driven by market interest rate changes.

Noninterest Expense


($ in thousands)	For the Three Months Ended						% Change 1Q2025 vs.
($ in thousands)		1Q2025		4Q2024		1Q2024	4Q2024		1Q2024
Noninterest Expense
Salaries and employee benefits	$	8,776	$	8,277	$	7,841	6.0	%	11.9	%
Occupancy and equipment		1,581		1,682		1,655	(6.0	)	(4.5	)
Data processing and communication		296		594		487	(50.2	)	(39.2	)
Professional fees		407		388		395	4.9		3.0
FDIC insurance and regulatory assessments		487		529		374	(7.9	)	30.2
Promotion and advertising		156		82		149	90.2		4.7
Directors’ fees		180		151		157	19.2		14.6
Foundation donation and other contributions		556		480		540	15.8		3.0
Other expenses		1,375		950		559	44.7		146.0
Total noninterest expense	$	13,814	$	13,133	$	12,157	5.2	%	13.6	%

First Quarter 2025 vs. Fourth Quarter 2024

Noninterest expense increased $681 thousand, or 5.2%, primarily due to higher salaries and employee benefits and other expenses, partially offset by lower data processing and communication.

Salaries and employee benefits increased $499 thousand, primarily due to an increase in employee salaries as a result of an increase in our employee headcount to 240 from 231.

Other expenses increased $425 thousand, primarily due to an increase in credit related expenses.

Data processing and communication decreased $298 thousand, primarily due to a reduction in data processing expenses following our core banking system change completed in the fourth quarter of 2024.

First Quarter 2025 vs. First Quarter 2024

Noninterest expense increased $1.7 million, or 13.6%, primarily due to higher salaries and employee benefits and other expenses, partially offset by lower data processing and communication.

Salaries and employee benefits increased $935 thousand, primarily due to increases in salaries and employee benefits as our employee headcount increased to 240 from 228.

Other expenses increased $816 thousand, primarily due to an increase in credit related expenses and an increase in customer services expenses related to the increase in the number of analysis accounts.

Data processing and communication decreased $191 thousand, primarily due to a reduction in data processing expenses following our core banking system change completed in the fourth quarter of 2024.

Income Tax Expense

First Quarter 2025 vs. Fourth Quarter 2024

Income tax expense was $2.1 million, or an effective tax rate of 27.6%, compared to income tax expense of $1.7 million, or an effective tax rate of 25.4%. The increase in effective tax rate was primarily due to the absence of additional tax benefits from year-end tax provision adjustments in the fourth quarter of 2024.

First Quarter 2025 vs. First Quarter 2024

Income tax expense was $2.1 million, resulting in an effective tax rate of 27.6%, compared to income tax expense of $2.0 million, resulting in an effective tax rate of 28.0%. The decrease in effective tax rate was primarily due to tax benefits recognized from restricted stock awards vested in the first quarter of 2025.

BALANCE SHEET HIGHLIGHTS

Loans


($ in thousands)	As of						% Change 1Q2025 vs.
($ in thousands)		1Q2025		4Q2024		1Q2024	4Q2024		1Q2024
CRE loans	$	1,023,278	$	980,247	$	905,534	4.4	%	13.0	%
SBA loans		258,778		253,710		247,550	2.0		4.5
C&I loans		202,250		213,097		147,508	(5.1	)	37.1
Home mortgage loans		559,543		509,524		502,995	9.8		11.2
Consumer & other loans		36		274		1,400	(86.9	)	(97.4	)
Gross loans	$	2,043,885	$	1,956,852	$	1,804,987	4.4	%	13.2	%

The following table presents new loan originations based on loan commitment amounts for the periods indicated:


($ in thousands)	For the Three Months Ended						% Change 1Q2025 vs.
($ in thousands)		1Q2025		4Q2024		1Q2024	4Q2024		1Q2024
CRE loans	$	58,105	$	64,827	$	44,595	(10.4	)%	30.3	%
SBA loans		45,899		36,810		52,379	24.7		(12.4	)
C&I loans		28,197		7,783		22,124	262.3		27.4
Home mortgage loans		73,375		17,937		2,478	309.1		2861.1
Consumer & other loans		200		—		—	—		—
Gross loans	$	205,776	$	127,357	$	121,576	61.6	%	69.3	%

The following table presents changes in gross loans by loan activity for the periods indicated:


($ in thousands)	For the Three Months Ended
($ in thousands)		1Q2025			4Q2024			1Q2024
Loan Activities:
Gross loans, beginning	$	1,956,852		$	1,931,007		$	1,765,845
New originations		205,776			127,357			121,576
Purchases		—			—			—
Sales		(31,068	)		(34,715	)		(24,820	)
Payoffs & paydowns		(87,701	)		(70,375	)		(43,334	)
Decrease (increase) in loans held for sale		26			3,578			(14,280	)
Total		87,033			25,845			39,142
Gross loans, ending	$	2,043,885		$	1,956,852		$	1,804,987

As of March 31, 2025 vs. December 31, 2024

Gross loans were $2.04 billion as of March 31, 2025, an increase of $87.0 million, or 4.4%, from December 31, 2024, primarily due to new loan originations, partially offset by loan sales, payoffs and paydowns. New loan originations, loan sales, and loan payoffs and paydowns were $205.8 million, $31.1 million, and $87.7 million, respectively, for the first quarter of 2025, compared with $127.4 million, $34.7 million, and $70.4 million, respectively, for the fourth quarter of 2024.

As of March 31, 2025 vs. March 31, 2024

Gross loans were $2.04 billion as of March 31, 2025, an increase of $238.9 million, or 13.2%, from March 31, 2024, primarily due to an increase in new loan originations of $587.0 million, partially offset by loan sales of $133.5 million and loan payoffs and paydowns of $232.5 million.

The following table presents the composition of gross loans by interest rate type accompanied with the weighted average contractual rates as of the periods indicated:


($ in thousands)	As of
	1Q2025				4Q2024				1Q2024
	%		Rate		%		Rate		%		Rate
Fixed rate	32.8	%	5.55	%	33.2	%	5.44	%	35.1	%	5.17	%
Hybrid rate	37.4		5.71		37.0		5.66		32.8		5.22
Variable rate	29.8		8.20		29.8		8.47		32.1		9.16
Gross loans	100.0	%	6.40	%	100.0	%	6.43	%	100.0	%	6.47	%

The following table presents the maturity of gross loans by interest rate type accompanied with the weighted average contractual rates for the periods indicated:


($ in thousands)	As of March 31, 2025
	Within One Year				One Year Through Five Years				After Five Years				Total
	Amount		Rate		Amount		Rate		Amount		Rate		Amount		Rate
Fixed rate	$	172,311	5.89	%	$	297,273	5.69	%	$	201,461	5.06	%	$	671,045	5.55	%
Hybrid rate		—	—			206,392	4.44			556,909	6.18			763,301	5.71
Variable rate		85,532	7.90			151,942	7.87			372,065	8.40			609,539	8.20
Gross loans	$	257,843	6.55	%	$	655,607	5.80	%	$	1,130,435	6.71	%	$	2,043,885	6.40	%

Allowance for Credit Losses

The following table presents allowance for credit losses and provision for credit losses as of and for the periods presented:


($ in thousands)	As of and For the Three Months Ended									Change 1Q2025 vs.
($ in thousands)		1Q2025			4Q2024			1Q2024			4Q2024			1Q2024
Allowance for credit losses on loans, beginning	$	24,796		$	22,960		$	21,993		$	1,836		$	2,803
Provision for credit losses		687			1,859			193			(1,172	)		494
Gross charge-offs		(130	)		(29	)		(68	)		(101	)		(62	)
Gross recoveries		15			6			11			9			4
Net charge-offs		(115	)		(23	)		(57	)		(92	)		(58	)
Allowance for credit losses on loans, ending	$	25,368		$	24,796		$	22,129		$	572		$	3,239

Allowance for credit losses on off-balance sheet exposure, beginning	$	360		$	672		$	516		$	(312	)	$	(156	)
Provision for (reversal of) credit losses		49			(312	)		(48	)		361			97
Allowance for credit losses on off-balance sheet exposure, ending	$	409		$	360		$	468		$	49		$	(59	)

Asset Quality


($ in thousands)	As of and For the Three Months Ended									Change 1Q2025 vs.
($ in thousands)		1Q2025			4Q2024			1Q2024		4Q2024		1Q2024
Loans 30-89 days past due and still accruing	$	6,452		$	8,964		$	3,904		(28.0	)%	65.3	%
As a % of gross loans		0.32	%		0.46	%		0.22	%	(0.14	)%p	0.10	%p

Nonperforming loans⁽¹⁾	$	10,412		$	7,820		$	4,343		33.1	%	139.7	%
Nonperforming assets⁽¹⁾		11,649			9,057			5,580		28.6		108.8
Nonperforming loans to gross loans		0.51	%		0.40	%		0.24	%	0.11	%p	0.27	%p
Nonperforming assets to total assets		0.46			0.38			0.25		0.08		0.21

Criticized loans⁽²⁾⁽³⁾	$	23,055		$	19,570		$	11,564		17.8	%	99.4	%
Criticized loans to gross loans		1.13	%		1.00	%		0.64	%	0.13	%p	0.49	%p

Allowance for credit losses ratios:
As a % of gross loans		1.24	%		1.27	%		1.23	%	(0.03	)%p	0.01	%p
As a % of nonperforming loans		244			317			510		(73	)	(266	)
As a % of nonperforming assets		218			274			397		(56	)	(179	)
As a % of criticized loans		110			127			191		(17	)	(81	)
Net charge-offs⁽⁴⁾ to average gross loans⁽⁵⁾		0.02			0.00			0.01		0.02		0.01

(1)	Excludes the guaranteed portion of loans that are in liquidation totaling $14.3 million, $16.3 million and $3.1 million as of March 31, 2025, December 31, 2024 and March 31, 2024, respectively.
(2)	Excludes the guaranteed portion of loans that are in liquidation totaling $17.2 million, $16.3 million and $3.1 million as of March 31, 2025, December 31, 2024 and March 31, 2024, respectively.
(3)	Consists of Special Mention, Substandard, Doubtful and Loss categories.
(4)	Annualized.
(5)	Includes loans held for sale.

Overall, the Bank’s nonperforming loans and net charge-offs remained relatively low. Our allowance remained adequate with an allowance to gross loans ratio of 1.24%.

Loans 30-89 days past due and still accruing were $6.5 million or 0.32% of gross loans as of March 31, 2025, compared with $9.0 million or 0.46% as of December 31, 2024.

Nonperforming loans were $10.4 million or 0.51% of gross loans as of March 31, 2025, compared with $7.8 million or 0.40% as of December 31, 2024. The increase of $2.6 million was primarily due to two home mortgage loans totaling $2.1 million. No loss is expected from the loans owing to sufficient equity in the collateral properties. One of the properties is currently in escrow for sale, and the other is listed on the market for sale.

Nonperforming assets were $11.6 million or 0.46% of total assets as of March 31, 2025, compared with $9.1 million or 0.38% as of December 31, 2024. OREO remained the same at $1.2 million as of March 31, 2025 and December 31, 2024, which is secured by a mix-use property in Los Angeles Koreatown.

Criticized loans were $23.1 million or 1.13% of gross loans as of March 31, 2025, compared with $19.6 million or 1.00% as of December 31, 2024. The increase was primarily due to the aforementioned two home mortgage loans and an SBA loan extended to finance construction of a full-service restaurant in Santa Monica, CA, by an experienced multi-store restaurant owner/operator. The SBA loan is performing, but it was downgraded to Special Mention to account for a longer period needed to complete the construction.

Net charge-offs were $115 thousand or 0.02% of average loans in the first quarter of 2025, compared to net charge-offs of $23 thousand, or 0.00% of average loans in the fourth quarter of 2024 and net charge-offs of $57 thousand, or 0.01% of average loans in the first quarter of 2024.

Deposits


($ in thousands)	As of												% Change 1Q2025 vs.
	1Q2025				4Q2024				1Q2024				% Change 1Q2025 vs.
	Amount		%		Amount		%		Amount		%		4Q2024		1Q2024
Noninterest-bearing deposits	$	552,797	25.2	%	$	504,928	24.9	%	$	539,396	28.5	%	9.5	%	2.5	%
Money market deposits and others		385,080	17.6			329,095	16.2			327,718	17.3		17.0		17.5
Time deposits		1,251,994	57.2			1,193,262	58.9			1,028,297	54.2		4.9		21.8
Total deposits	$	2,189,871	100.0	%	$	2,027,285	100.0	%	$	1,895,411	100.0	%	8.0	%	15.5	%

Estimated uninsured deposits	$	1,072,753	49.0	%	$	961,687	47.4	%	$	805,523	42.5	%	11.5	%	33.2	%

As of March 31, 2025 vs. December 31, 2024

Total deposits were $2.19 billion as of March 31, 2025, reflecting an increase of $162.6 million or 8.0% from December 31, 2024, primarily due to increases of $47.9 million in noninterest-bearing deposits, $56.0 million in money market deposits, and $58.7 million in time deposits. Customers’ preference for high-rate deposit products continued to drive the increase in time deposits and money market deposits. Even with the elevated uncertainty on economic and business outlook in the first quarter of 2025, noninterest-bearing deposits recovered fully from the temporary low balance as of December 31, 2024 continuing the upward trend started from January 2024.

As of March 31, 2025 vs. March 31, 2024

Total deposits were $2.19 billion as of March 31, 2025, an increase of $294.5 million from March 31, 2024, primarily driven by a $223.7 million increase in time deposits and a $57.4 million increase in money market deposits, and a $13.4 million increase in noninterest-bearing deposits. Noninterest-bearing deposits, as a percentage of total deposits, decreased to 25.2% from 28.5%. The composition shift to time deposits was primarily due to customers’ continued preference for high-rate time deposit products in anticipation of the Federal Reserve’s rate cuts in the next few years.

The following table sets forth the maturity of time deposits as of March 31, 2025:


	As of March 31, 2025
($ in thousands)	Within Three Months			Three to Six Months			Six to Nine Months			Nine to Twelve Months			After Twelve Months			Total
Time deposits (greater than $250)	$	178,030		$	158,269		$	130,971		$	143,513		$	—		$	610,783
Time deposits ($250 or less)		206,734			172,099			143,847			116,009			2,522			641,211
Total time deposits	$	384,764		$	330,368		$	274,818		$	259,522		$	2,522		$	1,251,994
Weighted average rate		4.68	%		4.60	%		4.26	%		4.24	%		2.83	%		4.47	%

OTHER HIGHLIGHTS

Liquidity

The Company maintains ample access to liquidity, including highly liquid assets on our balance sheet and available unused borrowings from other financial institutions. The following table presents the Company's liquid assets and available borrowings as of dates presented:


($ in thousands)		1Q2025			4Q2024			1Q2024
Liquidity Assets:
Cash and cash equivalents	$	198,861		$	134,943		$	139,246
Available-for-sale debt securities		182,480			185,909			187,225
Liquid assets	$	381,341		$	320,852		$	326,471
Liquid assets to total assets		15.2	%		13.6	%		14.6	%

Available Borrowings:
Federal Home Loan Bank—San Francisco	$	381,456		$	401,900		$	331,917
Federal Reserve Bank		217,563			215,115			185,913
Pacific Coast Bankers Bank		50,000			50,000			50,000
Zions Bank		25,000			25,000			25,000
First Horizon Bank		25,000			25,000			25,000
Total available borrowings	$	699,019		$	717,015		$	617,830
Total available borrowings to total assets		27.8	%		30.3	%		27.6	%

Liquid assets and available borrowings to total deposits		49.3	%		51.2	%		49.8	%

Capital and Capital Ratios

On April 24, 2025, the Company’s Board of Directors declared a quarterly cash dividend of $0.12 per share of its common stock. The cash dividend is payable on or about May 22, 2025 to all shareholders of record as of the close of business on May 8, 2025. The payment of the dividend is based primarily on dividends from the Bank to the Company, and future dividends will depend on the Board’s assessment of the availability of capital levels to support the ongoing operating capital needs of both the Company and the Bank.

The Company did not repurchase share of its common stock during the first quarter of 2025. Since the announcement of the stock repurchase program in August 2023, the Company has repurchased a total of 428,628 shares of our common stock at an average repurchase price of $9.37 per share through March 31, 2025.


	OP Bancorp⁽¹⁾		Open Bank		Minimum Well Capitalized Ratio		Minimum Capital Ratio+ Conservation Buffer⁽²⁾
Risk-Based Capital Ratios:
Total risk-based capital ratio	12.33	%	12.24	%	10.00	%	10.50	%
Tier 1 risk-based capital ratio	11.08		10.99		8.00		8.50
Common equity tier 1 ratio	11.08		10.99		6.50		7.00
Leverage ratio	9.22		9.15		5.00		4.00

(1)	The capital requirements are only applicable to the Bank, and the Company's ratios are included for comparison purpose.
(2)	An additional 2.5% capital conservation buffer above the minimum capital ratios are required in order to avoid limitations on distributions, including dividend payments and certain discretionary bonuses to executive officers. This buffer does not apply and is not included in the leverage ratio.


OP Bancorp										Change 1Q2025 vs.
OP Bancorp		1Q2025			4Q2024			1Q2024		4Q2024		1Q2024
Risk-Based Capital Ratios:
Total risk-based capital ratio		12.33	%		12.60	%		13.59	%	(0.27	)%p	(1.26	)%p
Tier 1 risk-based capital ratio		11.08			11.35			12.34		(0.27	)	(1.26	)
Common equity tier 1 ratio		11.08			11.35			12.34		(0.27	)	(1.26	)
Leverage ratio		9.22			9.27			9.65		(0.05	)	(0.43	)
Risk-weighted Assets ($ in thousands)	$	2,014,615		$	1,941,549		$	1,715,186		3.76	%	17.46	%

ABOUT OP BANCORP

OP Bancorp, the holding company for Open Bank (the "Bank"), is a California corporation whose common stock is quoted on the Nasdaq Global Market under the ticker symbol, "OPBK." The Bank is engaged in the general commercial banking business in Los Angeles, Orange, and Santa Clara Counties in California, the Dallas metropolitan area in Texas, and Clark County in Nevada and is focused on serving the banking needs of small- and medium-sized businesses, professionals, and residents with a particular emphasis on Korean and other ethnic minority communities. The Bank currently operates eleven full-service branch offices in Downtown Los Angeles, Los Angeles Fashion District, Los Angeles Koreatown, Cerritos, Gardena, Buena Park, and Santa Clara, California, Carrollton, Texas and Las Vegas, Nevada. The Bank also has five loan production offices in Pleasanton, California, Atlanta, Georgia, Aurora, Colorado, Lynnwood, Washington, and Fairfax, Virginia. The Bank commenced its operations on June 10, 2005 as First Standard Bank and changed its name to Open Bank in October 2010. Its headquarters is located at 1000 Wilshire Blvd., Suite 500, Los Angeles, California 90017. Phone 213.892.9999; www.myopenbank.com.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain matters set forth herein constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, including forward-looking statements relating to the Company’s current business plans and expectations regarding future operating results. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from those projected. These risks and uncertainties, some of which are beyond our control, include, but are not limited to: the impacts of recent wildfires affecting the Los Angeles Basin, which have dramatically affected our customers, communities and employees, and which will have as-yet-unquantified effects upon the value of our loans, the adequacy of our loan loss reserves, and the value of the associated collateral; the effects of substantial fluctuations in, and continuing elevated levels of, interest rates on our borrowers’ ability to perform in accordance with the terms of their loans and on our deposit customers’ expectation for higher rates on deposit products; cybersecurity risks, including the potential for the occurrence of successful cyberattacks and our ability to prevent and to mitigate the harms resulting from any such attacks; the geographic concentration of our customer base and our earning assets; infrastructure risks and similar circumstances that affect our and our customers’ ability to communicate and to engage in routine online banking activities; business and economic conditions, particularly those affecting the financial services industry and our primary market areas; risks of international conflict, terrorism, civil unrest and domestic instability; the continuing effects of inflation and monetary policies, particularly those relating to the decisions and indicators of intent expressed by the Federal Reserve Open Markets Committee, as those circumstances impact our operations and our current and prospective borrowers and depositors; our ability to balance deposit liabilities and liquidity sources (including our ability to reprice those instruments and balancing our borrowings and investments to keep pace with changing market conditions) so as to meet current and expected withdrawals while promoting strong earning capacity; our ability to manage our credit risk successfully and to assess, adjust and monitor the sufficiency of our allowance for credit losses; factors that can impact the performance of our loan portfolio, including real estate values and liquidity in our primary market areas, the financial health of our commercial borrowers, the success of construction projects that we finance, including any loans acquired in acquisition transactions; the impacts of credit quality on our earnings and the related effects of increases to the reserve on our net income; our ability effectively to execute our strategic plan and manage our growth; interest rate fluctuations, which could have an adverse effect on our profitability; external economic and/or market factors, such as changes in monetary and fiscal policies and laws, including inflation or deflation, changes in the demand for loans, and fluctuations in consumer spending, borrowing and savings habits, which may have an adverse impact on our financial condition; continued or increasing competition from other banks and from credit unions and non-bank financial services companies, many of which are subject to less restrictive or less costly regulations than we are; challenges arising from unsuccessful attempts to expand into new geographic markets, products, or services; practical and regulatory constraints on the ability of Open Bank to pay dividends to us; our ability to protect and to use our trademarks and related intellectual property; increased capital requirements imposed by banking regulators, which may require us to raise capital at a time when capital is not available on favorable terms or at all; a failure in the internal controls we have implemented to address the risks inherent to the business of banking; including internal controls that affect the reliability of our publicly reported financial statements; inaccuracies in our assumptions about future events, which could result in material differences between our financial projections and actual financial performance, particularly with respect to the effects of predictions of future economic conditions as those circumstances affect our estimates for the adequacy of our allowance for credit losses and the related provision expense; changes in our management personnel or our inability to retain motivate and hire qualified management personnel; disruptions, security breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems; disruptions, security breaches, or other adverse events affecting the third-party vendors who perform several of our critical processing functions; an inability to keep pace with the rate of technological advances due to a lack of resources to invest in new technologies; risks related to potential acquisitions; political developments, uncertainties or instability, catastrophic events, or natural disasters, such as earthquakes, fires, drought, pandemic diseases (such as the coronavirus) or extreme weather events (including but not limited to the above-described wildfires affecting the Los Angeles Metropolitan Area), any of which may affect services we use or affect our customers, employees or third parties with which we conduct business; incremental costs and obligations associated with operating as a public company; the impact of any claims or legal actions to which we may be subject, including any effect on our reputation; compliance with governmental and regulatory requirements, including the Dodd-Frank Act and others relating to banking, consumer protection, securities and tax matters, and our ability to maintain licenses required in connection with commercial mortgage origination, sale and servicing operations; changes in federal tax law or policy; and our ability the manage the foregoing and other factors set forth in the Company’s public reports. We describe these and other risks that could affect our results in Item 1A. "Risk Factors," of our latest Annual Report on Form 10-K for the year ended December 31, 2023 and in our subsequent filings with the Securities and Exchange Commission.

CONSOLIDATED BALANCE SHEETS (unaudited)


($ in thousands)	As of									% Change 1Q2025 vs.
($ in thousands)		1Q2025			4Q2024			1Q2024		4Q2024		1Q2024
Assets
Cash and due from banks	$	12,575		$	12,268		$	20,513		2.5	%	(38.7	)%
Interest-bearing deposits in other banks		186,286			122,675			118,733		51.9		56.9
Cash and cash equivalents		198,861			134,943			139,246		47.4		42.8
Available-for-sale debt securities, at fair value		182,480			185,909			187,225		(1.8	)	(2.5	)
Other investments		16,517			16,437			16,264		0.5		1.6
Loans held for sale		4,555			4,581			16,075		(0.6	)	(71.7	)
CRE loans		1,023,278			980,247			905,534		4.4		13.0
SBA loans		258,778			253,710			247,550		2.0		4.5
C&I loans		202,250			213,097			147,508		(5.1	)	37.1
Home mortgage loans		559,543			509,524			502,995		9.8		11.2
Consumer loans		36			274			1,400		(86.9	)	(97.4	)
Gross loans receivable		2,043,885			1,956,852			1,804,987		4.4		13.2
Allowance for credit losses		(25,368	)		(24,796	)		(22,129	)	2.3		14.6
Net loans receivable		2,018,517			1,932,056			1,782,858		4.5		13.2
Premises and equipment, net		6,526			5,449			4,971		19.8		31.3
Accrued interest receivable, net		9,871			9,188			8,370		7.4		17.9
Servicing assets		10,848			10,834			11,405		0.1		(4.9	)
Company owned life insurance		23,084			22,912			22,399		0.8		3.1
Deferred tax assets, net		13,183			14,893			13,802		(11.5	)	(4.5	)
Other real estate owned		1,237			1,237			1,237		—		—
Operating right-of-use assets		6,930			7,415			8,864		(6.5	)	(21.8	)
Other assets		20,362			20,159			21,804		1.0		(6.6	)
Total assets	$	2,512,971		$	2,366,013		$	2,234,520		6.2	%	12.5	%
Liabilities and Shareholders' Equity
Liabilities:
Noninterest-bearing	$	552,797		$	504,928		$	539,396		9.5	%	2.5	%
Money market and others		385,080			329,095			327,718		17.0		17.5
Time deposits greater than $250		610,783			565,813			451,497		7.9		35.3
Other time deposits		641,211			627,449			576,800		2.2		11.2
Total deposits		2,189,871			2,027,285			1,895,411		8.0		15.5
Federal Home Loan Bank advances		75,000			95,000			105,000		(21.1	)	(28.6	)
Accrued interest payable		14,994			16,067			12,270		(6.7	)	22.2
Operating lease liabilities		9,193			7,857			9,614		17.0		(4.4	)
Other liabilities		13,824			14,811			17,500		(6.7	)	(21.0	)
Total liabilities		2,302,882			2,161,020			2,039,795		6.6		12.9
Shareholders' equity:
Common stock		73,697			73,697			75,957		—		(3.0	)
Additional paid-in capital		11,371			11,928			11,240		(4.7	)	1.2
Retained earnings		138,563			134,781			124,280		2.8		11.5
Accumulated other comprehensive loss		(13,542	)		(15,413	)		(16,752	)	(12.1	)	(19.2	)
Total shareholders’ equity		210,089			204,993			194,725		2.5		7.9
Total liabilities and shareholders' equity	$	2,512,971		$	2,366,013		$	2,234,520		6.2	%	12.5	%

CONSOLIDATED STATEMENTS OF INCOME (unaudited)


($ in thousands, except share and per share data)	For the Three Months Ended						% Change 1Q2025 vs.
($ in thousands, except share and per share data)		1Q2025		4Q2024		1Q2024	4Q2024		1Q2024
Interest income
Interest and fees on loans	$	31,689	$	31,729	$	30,142	(0.1	)%	5.1	%
Interest on available-for-sale debt securities		1,496		1,551		1,460	(3.5	)	2.5
Other interest income		1,674		1,771		1,311	(5.5	)	27.7
Total interest income		34,859		35,051		32,913	(0.5	)	5.9
Interest expense
Interest on deposits		16,608		17,182		15,675	(3.3	)	6.0
Interest on borrowings		833		940		1,259	(11.4	)	(33.8	)%
Total interest expense		17,441		18,122		16,934	(3.8	)	3.0
Net interest income		17,418		16,929		15,979	2.9		9.0
Provision for credit losses		736		1,547		145	(52.4	)	407.6
Net interest income after provision for credit losses		16,682		15,382		15,834	8.5		5.4
Noninterest income
Service charges on deposits		1,000		967		612	3.4		63.4
Loan servicing fees, net of amortization		1,007		858		772	17.4		30.4
Gain on sale of loans		2,019		2,197		1,703	(8.1	)	18.6
Other income		790		395		499	100.0		58.3
Total noninterest income		4,816		4,417		3,586	9.0		34.3
Noninterest expense
Salaries and employee benefits		8,776		8,277		7,841	6.0		11.9
Occupancy and equipment		1,581		1,682		1,655	(6.0	)	(4.5	)
Data processing and communication		296		594		487	(50.2	)	(39.2	)
Professional fees		407		388		395	4.9		3.0
FDIC insurance and regulatory assessments		487		529		374	(7.9	)	30.2
Promotion and advertising		156		82		149	90.2		4.7
Directors’ fees		180		151		157	19.2		14.6
Foundation donation and other contributions		556		480		540	15.8		3.0
Other expenses		1,375		950		559	44.7		146.0
Total noninterest expense		13,814		13,133		12,157	5.2		13.6
Income before income tax expense		7,684		6,666		7,263	15.3		5.8
Income tax expense		2,124		1,695		2,037	25.3		4.3
Net income	$	5,560	$	4,971	$	5,226	11.8	%	6.4	%

Book value per share	$	14.09	$	13.83	$	13.00	1.9	%	8.4	%
Earnings per share - basic		0.37		0.33		0.34	12.1		8.8
Earnings per share - diluted		0.37		0.33		0.34	12.1		8.8

Shares of common stock outstanding, at period end		14,914,261		14,819,866		14,982,555	0.6	%	(0.5	)%
Weighted average shares:
- Basic		14,857,234		14,816,416		14,991,835	0.3	%	(0.9	)%
- Diluted		14,857,234		14,816,416		14,991,835	0.3		(0.9	)

KEY RATIOS


	For the Three Months Ended						Change 1Q2025 vs.
	1Q2025		4Q2024		1Q2024		4Q2024		1Q2024
Return on average assets (ROA)⁽¹⁾	0.92	%	0.84	%	0.96	%	0.08	%p	(0.04	)%p
Return on average equity (ROE)⁽¹⁾	10.73		9.75		10.83		0.98		(0.10	)
Net interest margin⁽¹⁾	3.01		2.96		3.06		0.05		(0.05	)
Efficiency ratio	62.13		61.52		62.14		0.61		(0.01	)

Total risk-based capital ratio	12.33	%	12.60	%	13.59	%	(0.27	)%p	(1.26	)%p
Tier 1 risk-based capital ratio	11.08		11.35		12.34		(0.27	)	(1.26	)
Common equity tier 1 ratio	11.08		11.35		12.34		(0.27	)	(1.26	)
Leverage ratio	9.22		9.27		9.65		(0.05	)	(0.43	)

(1) Annualized.

ASSET QUALITY


($ in thousands)	As of and For the Three Months Ended
($ in thousands)	1Q2025			4Q2024			1Q2024
Nonaccrual loans⁽¹⁾	$	10,412		$	7,820		$	4,343
Loans 90 days or more past due, accruing		—			—			—
Nonperforming loans		10,412			7,820			4,343
OREO		1,237			1,237			1,237
Nonperforming assets	$	11,649		$	9,057		$	5,580

Criticized loans⁽²⁾ by risk categories:
Special mention loans	$	7,190		$	6,309		$	1,415
Classified loans⁽³⁾		15,865			13,261			10,149
Total criticized loans	$	23,055		$	19,570		$	11,564

Nonperforming loans / gross loans		0.51	%		0.40	%		0.24	%
Nonperforming assets / gross loans plus OREO		0.57			0.46			0.31
Nonperforming assets / total assets		0.46			0.38			0.25
Classified loans / gross loans		0.78			0.68			0.56
Criticized loans / gross loans		1.13			1.00			0.64

Allowance for credit losses ratios:
As a % of gross loans		1.24	%		1.27	%		1.23	%
As a % of nonperforming loans		244			317			510
As a % of nonperforming assets		218			274			397
As a % of classified loans		160			187			218
As a % of criticized loans		110			127			191

Net charge-offs	$	115		$	23		$	57
Net charge-offs⁽⁴⁾ to average gross loans⁽⁵⁾		0.02	%		0.00	%		0.01	%

(1)	Excludes the guaranteed portion of loans that are in liquidation totaling $14.3 million, $16.3 million and $3.1 million as of March 31, 2025, December 31, 2024 and March 31, 2024, respectively.
(2)	Excludes the guaranteed portion of loans that are in liquidation totaling $17.2 million, $16.3 million and $3.1 million as of March 31, 2025, December 31, 2024 and March 31, 2024, respectively.
(3)	Consists of Substandard, Doubtful and Loss categories.
(4)	Annualized.
(5)	Includes loans held for sale.


($ in thousands)		1Q2025		4Q2024		1Q2024
Accruing delinquent loans 30-89 days past due by loan type:
CRE loans	$	—	$	—	$	—
SBA loans		2,483		370		801
C&I loans		—		15		—
Home mortgage loans		3,969		2,774		—
Total 30-59 days		6,452		3,159		801
CRE loans		—		—		—
SBA loans		—		211		211
C&I loans		—		—		—
Home mortgage loans		—		5,594		2,892
Total 60-89 days		—		5,805		3,103
CRE loans		—		—		—
SBA loans		2,483		581		1,012
C&I loans		—		15		—
Home mortgage loans		3,969		8,368		2,892
Total accruing delinquent loans 30-89 days past due	$	6,452	$	8,964	$	3,904

Nonaccrual loans⁽¹⁾ by loan type:
CRE loans	$	1,937	$	1,943	$	319
SBA loans		6,371		5,877		3,807
C&I loans		—		—		—
Home mortgage loans		2,104		—		217
Total nonaccrual loans	$	10,412	$	7,820	$	4,343

Criticized loans⁽²⁾ by loan type:
CRE loans	$	8,988	$	9,042	$	5,292
SBA loans		11,574		10,128		6,055
C&I loans		389		400		—
Home mortgage loans		2,104		—		217
Total criticized loans	$	23,055	$	19,570	$	11,564

(1)	Excludes the guaranteed portion of loans that are in liquidation totaling $14.3 million, $16.3 million and $3.1 million as of March 31, 2025, December 31, 2024 and March 31, 2024, respectively.
(2)	Excludes the guaranteed portion of loans that are in liquidation totaling $17.2 million, $16.3 million and $3.1 million as of March 31, 2025, December 31, 2024 and March 31, 2024, respectively.

AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS


	For the Three Months Ended
	1Q2025						4Q2024						1Q2024
($ in thousands)	Average Balance		Interest and Fees		Yield/ Rate⁽¹⁾		Average Balance		Interest and Fees		Yield/ Rate⁽¹⁾		Average Balance		Interest and Fees		Yield/ Rate⁽¹⁾
Interest-earning assets:
Interest-bearing deposits in other banks	$	124,069	$	1,372	4.42	%	$	120,170	$	1,456	4.74	%	$	73,047	$	989	5.35	%
Federal funds sold and other investments		16,469		302	7.33			16,478		315	7.63			16,265		322	7.92
Available-for-sale debt securities, at fair value		184,649		1,496	3.24			193,738		1,551	3.20			191,383		1,460	3.05
CRE loans		1,000,426		14,980	6.07			960,639		14,653	6.07			901,262		13,729	6.13
SBA loans		265,953		6,207	9.47			269,842		6,542	9.65			259,368		7,213	11.19
C&I loans		212,106		3,778	7.22			217,816		4,086	7.46			134,893		2,670	7.96
Home mortgage loans		526,326		6,718	5.11			499,151		6,441	5.16			512,023		6,495	5.07
Consumer loans		233		6	9.75			205		7	13.55			1,386		35	10.10
Loans⁽²⁾		2,005,044		31,689	6.39			1,947,653		31,729	6.49			1,808,932		30,142	6.69
Total interest-earning assets		2,330,231		34,859	6.04			2,278,039		35,051	6.12			2,089,627		32,913	6.32
Noninterest-earning assets		77,823						85,218						87,586
Total assets	$	2,408,054					$	2,363,257					$	2,177,213

Interest-bearing liabilities:
Money market deposits and others	$	353,804	$	3,085	3.54	%	$	335,197	$	3,100	3.68	%	$	367,386	$	3,940	4.31	%
Time deposits		1,208,032		13,523	4.54			1,151,112		14,082	4.87			954,442		11,735	4.94
Total interest-bearing deposits		1,561,836		16,608	4.31			1,486,309		17,182	4.60			1,321,828		15,675	4.77
Borrowings		78,944		833	4.28			86,525		940	4.32			108,681		1,259	4.66
Total interest-bearing liabilities		1,640,780		17,441	4.31			1,572,834		18,122	4.58			1,430,509		16,934	4.76
Noninterest-bearing liabilities:
Noninterest-bearing deposits		522,054						543,546						514,503
Other noninterest-bearing liabilities		38,014						42,925						39,207
Total noninterest-bearing liabilities		560,068						586,471						553,710
Shareholders’ equity		207,206						203,952						192,994
Total liabilities and shareholders’ equity	$	2,408,054						2,363,257						2,177,213

Net interest income / interest rate spreads			$	17,418	1.73	%			$	16,929	1.54	%			$	15,979	1.56	%
Net interest margin					3.01	%					2.96	%					3.06	%

Cost of deposits & cost of funds:
Total deposits / cost of deposits	$	2,083,890	$	16,608	3.23	%	$	2,029,855	$	17,182	3.37	%	$	1,836,331	$	15,675	3.43	%
Total funding liabilities / cost of funds		2,162,834		17,441	3.27			2,116,380		18,122	3.41			1,945,012		16,934	3.50