EX-99.1 2 opbk8-kerx2026xq1xex991.htm EX-99.1 Document

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News Release
OP Bancorp Reports First Quarter 2026 Net Income of $7.2 Million, Diluted EPS of $0.48
compared with Fourth quarter 2025 net income of $7.0 million, diluted EPS of $0.47,
and first quarter 2025 net income of $5.6 million, diluted EPS of $0.37
Higher revenue; improved operating efficiency

Los Angeles, CA (April 23, 2026) — OP Bancorp (the “Company”) (NASDAQ: OPBK), parent company of Open Bank, today reported:
($ in thousands, except per share data)As of and For the QuarterFirst Quarter Highlights
1Q20264Q20251Q2025Comparisons reflect 1Q26 vs. 4Q25
Income Statement:Income Statement
Net interest income$20,523 $20,863 $17,418 
• Revenue continued to grow.
•Net income increased 3%, benefiting from higher revenue and reductions in both provision and noninterest expenses.
•Diluted EPS improved modestly by $0.01.
Noninterest income4,032 3,418 4,816 
Revenue24,555 24,281 22,234 
Provision for credit losses412 463 736 
Noninterest expense14,233 14,293 13,814 
Net income$7,234 $7,038 $5,560 
Diluted Earnings Per Share (“EPS”)$0.48 $0.47 $0.37 
Net interest margin (1)
3.19 %3.25 %3.01 %
Efficiency ratio (2)
57.97 58.87 62.13 
Balance Sheet:Balance Sheet
Average loans (3)
$2,226,749 $2,204,232 $2,005,044 
•Average loans increased 1%.
•Average deposits increased 2%.
Average deposits2,300,455 2,264,990 2,083,890 
Credit Quality:Credit Quality
Net (recoveries) charge-offs (1) to average gross loans
(0.01)%(0.03)%0.02 %
•Net charge-offs remained at a low level.
Allowance for credit losses on loans to gross loans1.27 1.28 1.24 
•Allowance for credit losses to gross loans remained stable.
Selected Ratios:Performance and Capital
Book value per share$15.62 $15.31 $14.09 
•Book value per share continued to rise, reflecting the Company’s growing net worth.
Return on average assets ("ROAA") (1)
1.08 %1.07 %0.92 %
•ROAA, ROAE and stockholders’ equity to asset ratios improved, reflecting stable profitability and more efficient utilization of assets and equity.
Return on average equity ("ROAE") (1)
12.56 12.53 10.73 
Stockholders' equity to asset ratio8.62 8.60 8.36 
Common equity tier 1 capital (“CET1”)10.82 10.93 10.97 
•CET1 remained robust, reflecting a solid capital position.
(1)Annualized.
(2)Represents noninterest expense divided by the sum of net interest income and noninterest income.
(3)Includes loans held-for-sale.
1


Sang K. Oh, President and Chief Executive Officer:
“We continued to deliver strong results that highlight the strength and resilience of our Company. Revenue grew steadily, supported by continued loan and deposit growth, along with higher noninterest income from increased gains on loan sales. Our disciplined expense management further enhanced performance, and overall credit quality remained sound and manageable with low net charge-offs. With a solid capital base, we are well-positioned for sustainable growth as we move into 2026,” said Sang K. Oh, President and Chief Executive Officer.
2

INCOME STATEMENT HIGHLIGHTS
Net Interest Income and Net Interest Margin
($ in thousands)For the Three Months Ended% Change 1Q2026 vs.
1Q20264Q20251Q20254Q20251Q2025
Interest Income
Interest income$38,537 $39,282 $34,859 (2)%11 %
Interest expense18,014 18,419 17,441 (2)3 
Net interest income$20,523 $20,863 $17,418 (2)%18 %

($ in thousands)For the Three Months EndedAverage Yield/Rate Change 1Q2026 vs.
1Q20264Q20251Q2025
Interest Income/Expense
Average Yield/Rate(1)
Interest Income/Expense
Average Yield/Rate(1)
Interest Income/Expense
Average Yield/Rate(1)
4Q20251Q2025
Interest-earning Assets:
Loans$34,879 6.33 %$35,921 6.48 %$31,689 6.39 %(15) bps(6) bps
Total interest-earning assets38,537 6.00 39,282 6.11 34,859 6.04 (11) bps(4) bps
Interest-bearing Liabilities:
Interest-bearing deposits16,845 3.83 17,324 3.97 16,608 4.31 (14) bps(48) bps
Total interest-bearing liabilities18,014 3.88 18,419 3.99 17,441 4.31 (11) bps(43) bps
Ratios:
Net interest income / interest rate spreads20,523 2.12 20,863 2.12 17,418 1.73 — bps39 bps
Net interest margin3.19 3.25 3.01 (6) bps18 bps
Total deposits / cost of deposits16,845 2.97 17,324 3.03 16,608 3.23 (6) bps(26) bps
Total funding liabilities / cost of funds18,014 3.04 18,419 3.09 17,441 3.27 (5) bps(23) bps
(1)Annualized.
3

($ in thousands)For the Three Months EndedAverage Yield Change 1Q2026 vs.
1Q20264Q20251Q2025
Interest Income
Average Yield(1)
Interest Income
Average Yield(1)
Interest Income
Average Yield(1)
4Q20251Q2025
Loan Yield Component:
Contractual interest rate$34,254 6.22 %$35,010 6.31 %$31,323 6.32 %(9) bps(10) bps
Accretion of SBA loan discount(2)
815 0.15 966 0.17 683 0.14 (2) bps1 bps
Amortization of net deferred fees127 0.02(17)(0.00)(106)(0.02)2 bps4 bps
Amortization of premium(312)(0.06)(301)(0.05)(329)(0.07)(1) bps1 bps
Amortization of premium - Home mortgage payoffs(186)(0.03)(123)(0.02)(162)(0.03)(1) bps— bps
Net interest recognized on nonaccrual loans(94)(0.02)105 0.02 132 0.02(4) bps(4) bps
Prepayment penalty income and other fees(3)
275 0.05 281 0.05 148 0.03 — bps2 bps
Yield on loans$34,879 6.33 %$35,921 6.48 %$31,689 6.39 %(15) bps(6) bps
(1)Annualized.
(2)Includes discount accretion from SBA loan payoffs of $370 thousand, $505 thousand and $193 thousand for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively.
(3)Includes prepayment penalty income of $98 thousand, $145 thousand and $67 thousand for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively, from Commercial Real Estate (“CRE”) and SBA loans.

First Quarter 2026 vs. Fourth Quarter 2025
Net interest income declined by $340 thousand, or 2%, primarily due to lower loan yields and two fewer accrual days, partially offset by balance-sheet growth and a special dividend on FHLB stock. As a result, the net interest margin contracted by 6 basis point to 3.19%.

◦Loans: Interest income decreased by $1.0 million, driven largely by a 15-basis-point decline in loan yields and two fewer accrual days, partially offset by a $22.5 million increase in average loan balances. The lower yield reflects the downward repricing of adjustable-rate loans and reduced rates on new originations following last year’s federal funds rate cuts. In addition, higher interest income reversals related to loans moving to nonaccrual status compared to the prior quarter further contributed to the decline in loan yields.
◦Deposits: Interest expense decreased by $479 thousand, primarily due to a 14-basis-point reduction in interest-bearing deposit costs and two fewer accrual days. This decrease was partially offset by a $51.4 million increase in average interest-bearing deposit balances.
◦Other investments: Interest income increased by $250 thousand, mainly due to a special dividend received on FHLB stock.

4

First Quarter 2026 vs. First Quarter 2025
Net interest income increased by $3.1 million, or 18%, driven primarily by balance-sheet growth and lower deposit rates. As a result, the net interest margin expanded by 18 basis points to 3.19%.
◦Loans: Interest income rose by $3.2 million, largely attributable to a $221.7 million increase in average loan balances, reflecting strong loan production and portfolio growth.
◦Deposits: Interest expense increased by $237 thousand, mainly due to a $221.9 million increase in average interest-bearing deposit balances. This increase was mostly offset by a 48-basis-point reduction in interest-bearing deposit costs, driven by the repricing of time deposits following the federal funds rate cuts.

Provision for Credit Losses
($ in thousands)For the Three Months Ended $ Change 1Q2026 vs.
1Q20264Q20251Q20254Q20251Q2025
Provision for credit losses on loans$400 $518 $687 $(118)$(287)
Reversal of credit losses on off-balance sheet exposure12 (55)49 67 (37)
Provision for credit losses$412 $463 $736 $(51)$(324)

First Quarter 2026 vs. Fourth Quarter 2025
Provision for credit losses on loans decreased modestly by $118 thousand, primarily reflecting lower quantitative reserves driven by changes in portfolio conditions, partially offset by higher specific reserves related to increased nonaccrual CRE loans.
First Quarter 2026 vs. First Quarter 2025
Provision for credit losses on loans decreased by $287 thousand, primarily due to lower qualitative reserves resulting from shifts in portfolio characteristics, partially offset by the higher specific reserves associated with additional nonaccrual CRE loans.

5

Noninterest Income
($ in thousands)For the Three Months Ended% Change 1Q2026 vs.
1Q20264Q20251Q20254Q20251Q2025
Noninterest Income
Service charges on deposits$463 $462 $1,000 0 %(54)%
Loan servicing fees, net of amortization722 650 1,007 11 (28)
Gains on sale of loans2,050 1,573 2,019 30 2 
Other income797 733 790 9 1 
Total noninterest income$4,032 $3,418 $4,816 18 %(16)%

First Quarter 2026 vs. Fourth Quarter 2025
Noninterest income increased by $614 thousand, or 18%, primarily driven by higher gains on sale of loans.

◦Gains on Sale of Loans: Increased by $477 thousand, driven by higher premium rates and stronger SBA loan sale activity. The Bank sold $32.2 million in SBA loans at an average premium rate of 8.27%, compared with $28.5 million sold at an average premium rate of 6.98% in the prior period.

First Quarter 2026 vs. First Quarter 2025
Noninterest income decreased by $784 thousand, or 16%, primarily due to lower service charges on deposits and reduced loan servicing fees.
◦Service Charges on Deposits: Decreased by $537 thousand, largely reflecting lower balances in existing business analysis accounts and closure of certain currency exchange-related accounts during the third quarter of 2025.
◦Loan Servicing Fees, net of amortization: Decreased by $285 thousand, mainly due to higher amortization of servicing assets, driven by elevated payoff activity within the servicing portfolio.


6

Noninterest Expense
($ in thousands)For the Three Months Ended% Change 1Q2026 vs.
1Q20264Q20251Q20254Q20251Q2025
Noninterest Expense
Salaries and employee benefits$9,276 $9,244 $8,776 0 %6 %
Occupancy and equipment1,811 1,919 1,581 (6)15 
Data processing and communication411 591 296 (30)39 
Professional fees399 549 407 (27)(2)
FDIC insurance and regulatory assessments418 362 487 15 (14)
Promotion and advertising120 (9)156 NM(23)
Directors’ fees144 148 180 (3)(20)
Foundation donation and other contributions725 707 556 3 30 
Other expenses929 782 1,375 19 (32)
Total noninterest expense$14,233 $14,293 $13,814 0 %3 %
NM — Not meaningful

First Quarter 2026 vs. Fourth Quarter 2025
Noninterest expense remained stable, with no meaningful change from the prior period.

First Quarter 2026 vs. First Quarter 2025
Noninterest expense increased by $419 thousand, or 3%, primarily due to higher salaries and employee benefits, and increased occupancy and equipment, partially offset by lower other expenses.

◦Salaries and Employee Benefits: Increased by $500 thousand, mainly driven by staffing growth, annual salary adjustments effective April 2025, and higher benefits costs, including health insurance. This increase was partially offset by lower incentive accruals.
◦Occupancy and equipment: Increased by $230 thousand, primarily due to the expiration of a common-area-maintenance concession on a lease that benefited the prior period.
◦Other expenses: Decreased by $446 thousand, primarily reflecting lower business development and credit-related expenses.

Income Tax Expense

First Quarter 2026 vs. Fourth Quarter 2025
Income tax expense increased by $189 thousand to $2.7 million, with the effective tax rate rising to 27.0% from 26.1%.

First Quarter 2026 vs. First Quarter 2025
Income tax expense increased by $552 thousand to $2.7 million, with the effective tax rate declining to 27.0% from 27.6%. The increase in income tax expense was primarily attributable to higher pre-tax income.

7

BALANCE SHEET HIGHLIGHTS

Loans
($ in thousands)As of% Change 1Q2026 vs.
1Q20264Q20251Q20254Q20251Q2025
CRE$1,173,366 $1,132,223 $1,023,278 4 %15 %
SBA284,182 264,523 258,778 7 10 
C&I219,367 221,270 202,250 (1)8 
Home mortgage556,952 574,300 559,543 (3)0 
Consumer & other392 1,353 36 (71)989 
Gross loans$2,234,259 $2,193,669 $2,043,885 2 %9 %


The following table presents loan originations and the corresponding weighted average contractual rates for the periods indicated:
($ in thousands)For the Three Months Ended% Change in Amounts 1Q2026 vs.
1Q20264Q20251Q20254Q20251Q2025
AmountRateAmountRateAmountRate
CRE$83,333 6.48 %$75,750 6.60 %$69,889 7.03 %10 %19 %
SBA
33,528 7.99 26,748 8.52 18,206 8.81 25 84 
C&I8,489 7.00 6,870 6.57 506 8.18 24 1578 
Home mortgage7,059 6.03 7,020 6.45 74,004 6.42 1 (90)
Consumer and other — — — — 40 6.05 —(100)
Gross loans (1)
$132,409 6.87 %$116,388 7.03 %$162,645 6.95 %14 %(19)%
(1)Excludes changes in line utilization.
The following table summarizes the loan activity for the periods indicated:
($ in thousands)For the Three Months Ended
1Q20264Q20251Q2025
Beginning Balance$2,193,669 $2,151,217 $1,956,852 
Originations132,409 116,388 162,645 
Net change in line utilization28,712 34,191 12,841 
Purchases— 1,014 12,028 
Sales(29,438)(28,549)(36,086)
Payoffs & paydowns(98,703)(82,365)(65,621)
Other7,610 1,773 1,226 
Total40,590 42,452 87,033 
Ending balance$2,234,259 $2,193,669 $2,043,885 

8

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
1Q20264Q20251Q2025
%Rate%Rate%Rate
Fixed rate29 %5.70 %31 %5.65 %33 %5.53 %
Hybrid rate40 6.00 40 5.93 37 5.71 
Variable rate31 6.86 29 7.22 30 7.86 
Gross loans100 %6.18 %100 %6.22 %100 %6.29 %

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, 2026
Within One YearOne Year Through Five YearsAfter Five YearsTotal
AmountRateAmountRateAmountRateAmountRate
Fixed rate$183,123 5.72 %$282,353 6.26 %$182,259 4.82 %$647,735 5.70 %
Hybrid rate— — 189,039 4.94 712,525 6.28 901,564 6.00 
Variable rate108,892 7.00 197,491 6.78 378,577 6.87 684,960 6.86 
Gross loans$292,015 6.20 %$668,883 6.04 %$1,273,361 6.25 %$2,234,259 6.18 %

Allowance for Credit Losses

The following table summarizes the activity in the allowance for credit losses for the periods presented:
($ in thousands)As of and For the Three Months Ended $ Change 1Q2026 vs.
1Q20264Q20251Q20254Q20251Q2025
Allowance for credit losses on loans, beginning$27,975 $27,299 $24,796 $676 $3,179 
Provision for credit losses on loans
400 518 687 (118)(287)
Gross charge-offs(31)— (130)(31)99 
Gross recoveries62 158 15 (96)47 
Net recoveries (charge-offs)31 158 (115)(127)146 
Allowance for credit losses on loans, ending
$28,406 $27,975 $25,368 $431 $3,038 
Allowance for credit losses on off-balance sheet exposure, beginning$274 $329 $360 $(55)$(86)
Provision for (reversal of) credit losses on off-balance sheet exposure
12 (55)49 67 (37)
Allowance for credit losses on off-balance sheet exposure, ending
$286 $274 $409 $12 $(123)

9

Asset Quality
($ in thousands)As of and For the Three Months Ended% or Basis Point Change 1Q2026 vs.
1Q20264Q20251Q20254Q20251Q2025
Accruing loans 30-89 days past due (1)
$9,311 $6,292 $6,452 48 %44 %
As a % of gross loans0.42 %0.29 %0.32 %13 bps10 bps
Nonperforming loans (2)
$18,297 $14,071 $10,412 30 %76 %
Nonperforming assets (2)
18,297 14,071 11,649 30 57 
Nonperforming loans to gross loans0.82 %0.64 %0.51 %18 bps31 bps
Nonperforming assets to total assets0.68 0.53 0.46 15 bps22 bps
Criticized loans (3)(4)
$33,235 $32,060 $23,055 3.7 %44.2 %
Criticized loans to gross loans1.49 %1.46 %1.13 %3 bps36 bps
Allowance for credit losses ratios:
As a % of gross loans1.27 %1.28 %1.24 %(1) bps3 bps
As a % of nonperforming loans155 199 244 (44)%(89)%
As a % of nonperforming assets155 199 218 (44)(63)
As a % of criticized loans85 87 110 (2)(25)
Net (recoveries) charge-offs (5) to average gross loans
(0.01)(0.03)0.022 bps(3) bps
(1)Excludes the guaranteed portion of loans totaling $947 thousand and $3.2 million as of March 31, 2026 and December 31, 2025, respectively. There were no guaranteed portion as of March 31, 2025.
(2)Excludes the guaranteed portion of loans totaling $30.8 million, $20.9 million and $14.3 million as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively.
(3)Excludes the guaranteed portion of loans totaling $35.9 million, $27.3 million and $17.2 million as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively.
(4)Consists of special mention, substandard, doubtful and loss categories.
(5)Annualized.

Credit quality remained manageable during the period. The increase in nonperforming loans was primarily driven by a single isolated relationship, while overall credit performance continued to be stable. The allowance for credit losses on loans remained adequate at 1.27% of gross loans.
◦Accruing loans 30-89 days past-due increased by $3.0 million, primarily driven by $6.8 million inflows into this category, mainly SBA loans. This increase was partially offset by $2.3 million of SBA loans moving to nonaccrual status and $1.5 million returning to the 29-days-or-less past-due category.
◦Nonperforming loans increased by $4.2 million, primarily driven by a single $4.1 million CRE relationship that migrated to nonaccrual. This loan is currently in active resolution and is expected to be fully paid off by the second quarter of 2026.
◦Criticized loans increased by $1.2 million, primarily attributable to $2.9 million in loan downgrades. This increase was partially offset by an $872 thousand SBA note sale and $589 thousand in home mortgage loan payoffs.

10

Deposits
($ in thousands)As of% Change 1Q2026 vs.
1Q20264Q20251Q2025
Amount%Amount%Amount%4Q20251Q2025
Noninterest-bearing deposits$546,550 24 %$520,865 23 %$552,797 25 %5 %(1)%
Money market deposits and others398,756 17 388,066 17 385,080 18 3 4 
Time deposits1,381,988 59 1,371,616 60 1,251,994 57 1 10 
Total deposits$2,327,294 100 %$2,280,547 100 %$2,189,871 100 %2 %6 %
Estimated uninsured deposits$1,154,625 50 %$1,093,843 48 %$1,072,753 49 %6 %8 %
As of March 31, 2026 vs. December 31, 2025
Total deposits increased by $46.7 million or 2%, reflecting growth across all major deposit categories. The growth in noninterest-bearing deposits reflects both new account openings and higher balances from existing customers. The increase in money market deposits and others was primarily due to higher balances from existing customers. Time deposit growth was largely attributable to new retail customers opening accounts, partially offset by a decline in wholesale CD balances.
As of March 31, 2026 vs. March 31, 2025
Total deposits increased by $137.4 million or 6%, primarily driven by growth of $130.0 million in time deposits. The increase in time deposits was largely due to new customers opening CD accounts, reflecting a preference for higher-yielding products.

The following table sets forth the maturity of time deposits as of March 31, 2026:
As of March 31, 2026
($ in thousands)Within Three
Months		Three to
Six Months		Six to Nine MonthsNine to Twelve
Months		After
Twelve Months		Total
Time deposits (greater than $250)$159,075 $286,942 $157,995 $138,438 $703 $743,153 
Time deposits ($250 or less)303,647 159,114 99,555 74,733 1,786 638,835 
Total time deposits$462,722 $446,056 $257,550 $213,171 $2,489 $1,381,988 
Weighted average rate3.99 %3.92 %4.01 %3.78 %1.86 %3.94 %

11

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, including the Federal Reserve. The following table presents the Company's liquid assets and available borrowings as of dates presented:
($ in thousands)1Q20264Q20251Q2025
Liquidity Assets:
Cash and cash equivalents$160,260 $167,311 $198,861 
Available-for-sale ("AFS") debt securities209,006 192,785 182,480 
Liquid assets$369,266 $360,096 $381,341 
Liquid assets to total assets14 %14 %15 %
Available Borrowings:
Federal Home Loan Bank ("FHLB") —San Francisco$417,723 $443,629 $381,456 
Federal Reserve Bank204,140 208,859 217,563 
Pacific Coast Bankers Bank50,000 50,000 50,000 
Zions Bank25,000 25,000 25,000 
First Horizon Bank25,000 25,000 25,000 
Total available borrowings$721,863 $752,488 $699,019 
Total available borrowings to total assets27 %28 %28 %
Liquid assets and available borrowings to total deposits47 %49 %49 %

Capital and Capital Ratios

On April 23, 2026, the Company’s Board of Directors declared a quarterly cash dividend of $0.14 per share, representing a 17% increase from the prior quarterly dividend of $0.12 per share, on its common stock. The dividend is payable on or about May 21, 2026, to shareholders of record as of the close of business on May 7, 2026. The principal source of funds from which the Company pays dividends are the dividends received from the Bank. During the first quarter of 2026, no shares were repurchased under the repurchase program approved in August 2025.
OP Bancorp(1)
Open BankWell-
Capitalized
Requirement
Minimum
Capital Ratio+
Conservation
Buffer(2)
Risk-Based Capital Ratios (3):
Total capital13.17 %13.18 %10.00 %10.50 %
Tier 1 capital10.82 11.93 8.00 8.50 
CET1 capital10.82 11.93 6.50 7.00 
Tier 1 leverage9.07 10.00 5.00 4.00 
(1)The capital requirements are only applicable to the Bank. The Company's ratios are included solely 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 tier 1 leverage ratio.
(3)The Company’s March 31, 2026 regulatory capital ratios and risk-weighted assets are preliminary.
12

OP Bancorp% or Basis Point Change 1Q2026 vs.
1Q20264Q20251Q20254Q20251Q2025
Risk-Based Capital Ratios:
Total capital13.17 %
(1)
13.31 %12.22 %(14) bps95 bps
Tier 1 capital10.82 
(1)
10.93 10.97 (11) bps(15) bps
CET1 capital10.82 
(1)
10.93 10.97 (11) bps(15) bps
Tier 1 leverage9.07 
(1)
8.99 9.22 8 bps(15) bps
Risk-weighted Assets ($ in thousands)$2,245,233 
(1)
$2,174,801 $2,034,969 3 %10 %
(1)The Company’s March 31, 2026 regulatory capital ratios and risk-weighted assets are preliminary.

13

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 operates 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, serving small- and medium-sized businesses, professionals, and local residents with a particular focus on Korean and other Asian communities. The Bank currently operates twelve full-service branch offices in Downtown Los Angeles, Los Angeles Fashion District, Los Angeles Koreatown, Cerritos, Gardena, Buena Park, Garden Grove 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, and Rule 3b-6 promulgated thereunder. All statements that are not statements of historical fact are forward-looking, and readers should not construe these statements of assurances of expected or intended results, or of promises that management will take a given course of action or pursue the currently expected strategies and objectives. Forward-looking statements in this report include comments about the Company’s current business plans and expectations regarding future operating results, as well as management’s statements about expected future events and economic developments, plans, strategies and objectives. All such statements reflect the current intentions, beliefs and expectations of the Company’s executive management based on currently available information and current and expected market conditions. Forward-looking statements can sometimes be identified by the use of forward-looking language, such as “likely result in,” “expects,” “anticipates,” “estimates,” “forecasts,” “projects,” “intends to,” or may include other similar words or phrases, such as “believes,” “plans,” “trend,” “objective,” “continues,” “remains,” or similar expressions, or future or conditional verbs, such as “will,” “would,” “should,” “could,” “may,” “might,” “can,” or similar verbs. Readers should not construe these statements as assurances of a given level of performance, or as promises that we will take the actions our management currently expects.

Our forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from those projected or could cause us to change plans or strategies or otherwise to take actions that differ from those we currently expect. The known risks and uncertainties that may have these effects are described in Part I, Item 1A, of our Annual Report on Form 10-K for the period ended December 31, 2025, and in our other filings with the Securities and Exchange Commission. You should read all forward-looking statements in the context of the foregoing and should not consider them to be reliable predictions of future events or as assurances of a particular level of performance or intended course of action. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

Contact
Investor Relations
OP Bancorp
Jaehyun Park
EVP & CFO
213.593.4865
jaehyun.park@myopenbank.com
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CONSOLIDATED BALANCE SHEETS (unaudited)
($ in thousands)As of% Change 1Q2026 vs.
1Q20264Q20251Q20254Q20251Q2025
Assets  
Cash and due from banks$12,842 $10,911 $12,575 18 %2 %
Interest-bearing deposits with banks147,418 156,400 186,286 (6)(21)
Cash and cash equivalents160,260 167,311 198,861 (4)(19)
AFS debt securities, at fair value209,006 192,785 182,480 8 15 
Other investments17,213 17,208 16,517 0 4 
Loans held-for-sale9,498 11,443 4,555 (17)109 
CRE1,173,366 1,132,223 1,023,278 4 15 
SBA284,182 264,523 258,778 7 10 
C&I219,367 221,270 202,250 (1)8 
Home mortgage556,952 574,300 559,543 (3)0 
Consumer and other 392 1,353 36 (71)NM
Gross loans2,234,259 2,193,669 2,043,885 2 9 
Allowance for credit losses on loans(28,406)(27,975)(25,368)2 12 
Net loans2,205,853 2,165,694 2,018,517 2 9 
Premises and equipment, net5,516 5,744 6,526 (4)(15)
Accrued interest receivable10,683 10,482 9,871 2 8 
Servicing assets9,834 10,057 10,848 (2)(9)
Company owned life insurance23,794 23,616 23,084 1 3 
Deferred tax assets, net12,417 12,438 13,183 0 (6)
Other real estate owned ("OREO")— — 1,237 — (100)
Operating right-of-use assets8,253 8,804 6,930 (6)19 
Other assets26,300 24,644 20,362 7 29 
Total assets$2,698,627 $2,650,226 $2,512,971 2 %7 %
Liabilities and Shareholders' Equity
Liabilities:
Noninterest-bearing$546,550 $520,865 $552,797 5 %(1)%
Money market and others398,756 388,066 385,080 3 4 
Time deposits greater than $250743,153 683,956 610,783 9 22 
Other time deposits638,835 687,660 641,211 (7)0 
Total deposits2,327,294 2,280,547 2,189,871 2 6 
FHLB advances75,000 75,000 75,000 — — 
Subordinated note24,607 24,586 — 0 NM
Accrued interest payable15,181 14,595 14,994 4 1 
Operating lease liabilities10,508 11,175 9,193 (6)14 
Other liabilities13,326 16,430 13,824 (19)(4)
Total liabilities2,465,916 2,422,333 2,302,882 2 7 
Shareholders' equity:
Common stock73,018 73,018 73,697 — (1)
Additional paid-in capital11,995 11,849 11,371 1 5 
Retained earnings158,730 153,283 138,563 4 15 
Accumulated other comprehensive loss, net of tax(11,032)(10,257)(13,542)8 (19)
Total shareholders’ equity232,711 227,893 210,089 2 11 
Total liabilities and shareholders' equity$2,698,627 $2,650,226 $2,512,971 2 %7 %
Shares of common stock outstanding, at period-end14,894,239 14,889,540 14,914,261 0 %0 %
Book value per share$15.62 $15.31 $14.09 2 %11 %
Stockholders' equity to asset ratio8.62 %8.60 %8.36 %0 %3 %
NM — Not meaningful
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CONSOLIDATED STATEMENTS OF INCOME (unaudited)
($ in thousands, except share and per share data)For the Three Months Ended% or Basis Point Change 1Q2026 vs.
1Q20264Q20251Q20254Q20251Q2025
Interest income
Interest and fees on loans$34,879 $35,921 $31,689 (3)%10 %
Interest on AFS debt securities1,761 1,680 1,496 5 18 
Other interest income1,897 1,681 1,674 13 13 
Total interest income38,537 39,282 34,859 (2)11 
Interest expense
Interest on deposits16,845 17,324 16,608 (3)1 
Interest on borrowings679 817 833 (17)(18)
Interest on subordinated note490 278 — 76100
Total interest expense18,014 18,419 17,441 (2)3 
Net interest income20,523 20,863 17,418 (2)18 
Provision for credit losses412 463 736 (11)(44)
Net interest income after provision for credit losses20,111 20,400 16,682 (1)21 
Noninterest income
Service charges on deposits463 462 1,000 0 (54)
Loan servicing fees, net of amortization722 650 1,007 11 (28)
Gains on sale of loans2,050 1,573 2,019 30 2 
Other income797 733 790 9 1 
Total noninterest income4,032 3,418 4,816 18 (16)
Noninterest expense
Salaries and employee benefits9,276 9,244 8,776 0 6 
Occupancy and equipment1,811 1,919 1,581 (6)15 
Data processing and communication411 591 296 (30)39 
Professional fees399 549 407 (27)(2)
FDIC insurance and regulatory assessments418 362 487 15 (14)
Promotion and advertising120 (9)156 NM(23)
Directors’ fees144 148 180 (3)(20)
Foundation donation and other contributions725 707 556 3 30 
Other expenses929 782 1,375 19 (32)
Total noninterest expense14,233 14,293 13,814 0 3 
Income before income tax expense9,910 9,525 7,684 4 29 
Income tax expense2,676 2,487 2,124 8 26 
Net income$7,234 $7,038 $5,560 3 %30 %
EPS - basic0.49 0.47 0.37 2 bps12 bps
EPS - diluted0.48 0.47 0.37 1 bps11 bps
Weighted average shares:
- Basic14,890,92914,886,68114,857,2340 %0 %
- Diluted14,930,17314,915,67714,857,2340 0 
ROAA (1)
1.08 %1.07 %0.92 %1 bps16 bps
ROAE (1)
12.56 12.53 10.73 3 bps183 bps
Efficiency ratio (2)
57.97 58.87 62.13 (90) bps(416) bps
NM — Not meaningful
(1)Annualized.
(2)Represents noninterest expense divided by the sum of net interest income and noninterest income.
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ASSET QUALITY
($ in thousands)As of and For the Three Months Ended
1Q20264Q20251Q2025
Nonaccrual loans (1)(2)
$18,297 $14,071 $10,412 
Loans 90 days or more past due, accruing— — — 
Nonperforming loans18,297 14,071 10,412 
OREO— — 1,237 
Nonperforming assets$18,297 $14,071 $11,649 
Criticized loans (3) by risk categories:
Special mention loans$10,141 $10,885 $7,190 
Classified loans (4)
23,094 21,175 15,865 
Total criticized loans$33,235 $32,060 $23,055 
Nonperforming loans to gross loans0.82 %0.64 %0.51 %
Nonperforming assets to gross loans & OREO0.82 0.64 0.57 
Nonperforming assets to total assets0.68 0.53 0.46 
Classified loans to gross loans1.03 0.97 0.78 
Criticized loans to gross loans1.49 1.46 1.13 
Allowance for credit losses ratios:
As a % of gross loans1.27 %1.28 %1.24 %
As a % of nonperforming loans155 199 244 
As a % of nonperforming assets155 199 218 
As a % of classified loans123 132 160 
As a % of criticized loans85 87 110 
Net (recoveries) charge-offs $(31)$(158)$115 
Net (recoveries) charge-offs (5) to average gross loans
(0.01)%(0.03)%0.02 %
(1)Excludes loans held-for-sale.
(2)Excludes the guaranteed portion of loans totaling $30.8 million, $20.9 million and $14.3 million as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively.
(3)Excludes the guaranteed portion of loans totaling $35.9 million, $27.3 million and $17.2 million as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively.
(4)Consists of substandard, doubtful and loss categories.
(5)Annualized.


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($ in thousands)1Q20264Q20251Q2025
Accruing delinquent loans 30-89 days past due by loan type (1) :
CRE$— $— $— 
SBA5,374 2,562 2,483 
C&I9 — — 
Home mortgage 3,911 557 3,969 
Total 30-59 days9,294 3,119 6,452 
CRE— — — 
SBA— 1,168 — 
C&I17 — — 
Home mortgage — 2,005 — 
Total 60-89 days17 3,173 — 
CRE— — — 
SBA5,374 3,730 2,483 
C&I26 — — 
Home mortgage3,911 2,562 3,969 
Total accruing delinquent loans 30-89 days past due$9,311 $6,292 $6,452 
Nonaccrual loans (2) by loan type:
CRE$7,307 $3,424 $1,937 
SBA10,597 9,840 6,371 
C&I393 218 — 
Home mortgage— 589 2,104 
Total nonaccrual$18,297 $14,071 $10,412 
Criticized loans(3) by loan type:
CRE$10,057 $10,364 $8,988 
SBA20,016 18,218 11,574 
C&I1,620 1,338 389 
Home mortgage1,542 2,140 2,104 
Total criticized$33,235 $32,060 $23,055 
(1)Excludes the guaranteed portion of loans totaling $947 thousand and $3.2 million as of March 31, 2026 and December 31, 2025, respectively. There was no guaranteed portion as of March 31, 2025.
(2)Excludes the guaranteed portion of loans that were in liquidation totaling $30.8 million, $20.9 million and $14.3 million as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively.
(3)Excludes the guaranteed portion of loans that were in liquidation totaling $35.9 million, $27.3 million and $17.2 million as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively.
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AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS
For the Three Months Ended
1Q20264Q20251Q2025
($ in thousands)Average
Balance		Interest Income/Expense
Average Yield/Rate(1)
Average
Balance		Interest Income/Expense
Average Yield/Rate(1)
Average
Balance		Interest Income/Expense
Average Yield/Rate(1)
Interest-earning assets:
Interest-bearing deposits in other banks$145,013 $1,326 3.66 %$135,883 $1,360 3.92 %$124,069 $1,372 4.42 %
Other investments17,232 571 13.24 17,186 321 7.46 16,469 302 7.33 
AFS debt securities, at fair value205,247 1,761 3.43 198,335 1,680 3.39 184,649 1,496 3.24 
CRE1,154,515 17,814 6.26 1,119,031 17,616 6.25 1,000,426 14,980 6.07 
SBA292,821 5,980 8.28 282,501 6,557 9.21 265,953 6,207 9.47 
C&I212,941 3,552 6.77 220,274 3,846 6.93 212,106 3,778 7.22 
Home mortgage565,185 7,508 5.31 581,824 7,889 5.42 526,326 6,718 5.11 
Consumer and other1,287 25 7.99 602 13 8.75 233 6 9.75 
Loans (2)
2,226,749 34,879 6.33 2,204,232 35,921 6.48 2,005,044 31,689 6.39 
Total interest-earning assets2,594,241 38,537 6.00 2,555,636 39,282 6.11 2,330,231 34,859 6.04 
Noninterest-earning assets76,830 79,743 77,823 
Total assets$2,671,071 $2,635,379 $2,408,054 
Interest-bearing liabilities:
Money market deposits and others$393,242 $3,009 3.10 %$389,958 $3,241 3.30 %$353,804 $3,085 3.54 %
Time deposits1,390,491 13,836 4.04 1,342,337 14,083 4.16 1,208,032 13,523 4.54 
Total interest-bearing deposits1,783,733 16,845 3.83 1,732,295 17,324 3.97 1,561,836 16,608 4.31 
Borrowings75,834 679 3.63 86,905 817 3.73 78,944 833 4.28 
Subordinated note24,600 490 7.97 13,896 278 7.99 — — — 
Total interest-bearing liabilities1,884,167 18,014 3.88 1,833,096 18,419 3.99 1,640,780 17,441 4.31 
Noninterest-bearing liabilities:
Noninterest-bearing deposits516,722 532,695 522,054 
Other noninterest-bearing liabilities39,756 44,985 38,014 
Total noninterest-bearing liabilities556,478 577,680 560,068 
Shareholders’ equity230,426 224,603 207,206 
Total liabilities and shareholders’ equity$2,671,071 $2,635,379 $2,408,054 
Net interest income / interest rate spreads$20,523 2.12 %$20,863 2.12 %$17,418 1.73 %
Net interest margin3.19 %3.25 %3.01 %
Cost of deposits & cost of funds:
Total deposits / cost of deposits$2,300,455 $16,845 2.97 %$2,264,990 $17,324 3.03 %$2,083,890 $16,608 3.23 %
Total funding liabilities / cost of funds2,400,889 18,014 3.04 2,365,791 18,419 3.09 2,162,834 17,441 3.27 
(1)Annualized.
(2)Includes loans held-for-sale.


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