OP Bancorp Reports Net Income for Second Quarter 2021 of $6.4 Million and Diluted Earnings Per Share of $0.42

About this update from Op Bancorp

[{"type":"text","content":"\n2021 Second Quarter Highlights compared with 2020 Second Quarter:\n\n\nLoans Portfolio Purchase:\n\n\nOn May 24, 2021, the Company completed an asset purchase of loan portfolio from Hana Small Business Lending, Inc. (“Hana”). The Company paid Hana approximately $97.6 million that included loans of $100.0 million at a fair value discount of $8.9 million, servicing assets of $6.1 million and accrued interest receivable of $398 thousand.\n\n\n\n\n\nFinancial Results:\n\n\nNet income of $6.4 million, up $4.0 million, or 164%\n\n\nDiluted earnings per share of $0.42, up $0.26, or 163%\n\n\nNet interest income of $14.6 million, up $3.9 million, or 37%\n\n\nReversal of provision for loan losses of $1.1 million, a $3.1 million decrease in provision for loan losses.\n\n\nNoninterest income of $2.2 million, up $158 thousand, or 8%\n\n\nNoninterest expense of $8.8 million, up $1.5 million, or 20%\n\n\nPre-provision net revenue (1) of $8.0 million, up $2.6 million, or 49%\n\n\nTotal assets of $1.60 billion, up $316.9 million, or 25%\n\n\nTotal loans (2) of $1.31 billion, up $262.0 million, or 25%; Average loans (2) of $1.24 billion, up $197.1 million, or 19%\n\n\nTotal deposits of $1.43 billion, up $313.4 million, or 28%; Average deposits of $1.35 billion, up $254.5 million, or 23%\n\n\nNoninterest-bearing deposits to total deposits of 47%, up from 38%\n\n\nNet interest margin of 3.98%, up from 3.55%\n\n\nReturn on average equity of 17.10%, up from 6.97%\n\n\nReturn on average assets of 1.68%, up from 0.77%\n\n\nEfficiency ratio of 52.30%, an improvement from 57.70%\n\n\n\n\n\nCredit Quality:\n\n\nAllowance for loan losses to gross loans of 1.18%, down from 1.22%\n\n\nAdjusted allowance to gross loans (1) of 1.46%, up from 1.30%\n\n\nNet loan charge-offs remained minimal at 0.01%.\n\n\nNonperforming loans remained flat at 0.10% of gross loans.\n\n\n\n\n\nCapital Levels:\n\n\nQuarterly cash dividend increased by $0.03 per share, or 43%, to $0.10 per share from $0.07 per share.\n\n\nCapital position remained solid with a Common Equity Tier 1 (“CET1”) ratio of 12.77%.\n\n\nBook value per common share rose 9% to $10.04.\n\n\nReturned $1.1 million of capital to shareholders through cash dividend\n\n\n\n\n_______________________________________\n(1) See reconciliation of GAAP to non-GAAP financial measures.\n(2) Includes loans held for sale.\n\...

More updates from Op Bancorp