Op Bancorp · NASDAQ:OPBK
Op Bancorp — Q3 2021 Earnings Presentation
17 slides from Op Bancorp's earnings presentation, Oct 29, 2021
Slide 1: 2021 Third Quarter Earnings Presentation
2021 Third Quarter Earnings Presentation October 28, 2021
Slide 2: Forward-Looking Statements
Certain matters set forth herein constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including forward-looking statements relating to the Company’s current business plans and expectations regarding future operating results. These forwar
Slide 3: 3Q-2021 Highlights vs 3Q-2020
3Q-2021 Highlights vs 3Q-2020 3 Balance SheetEarnings & Profitability Credit Quality Net income of $8.3 million, up $4.7 million, or 129% Diluted earnings per share of $0.54, up $0.31, or 135% Net interest margin of 4.21%, up from 3.66% Reversal of provision for loan losses of $884 thousand,
Slide 4: COVID-19 Loan Modifications
COVID-19 Loan Modifications 4 (Dollars in thosands) As of September 30, 2021 Total Loans # of Loans Loan Amount % of Respective Loan Portfolio % of All Modified Loans Weighted Average DCR * Weighted Average LTV * CRE Total 998,916$ 3 6,274$ 0.6% 93.0% 0.83 63.1% Hotel/Motel 205,860 2 5,311 2.6% 78.7
Slide 5: COVID-19 Loan Modification Trend
COVID-19 Loan Modification Trend 5 # $000 # $000 # $000 # $000 # $000 # $000 Real Estate Lessors Total 72 150,452$ 18 43,806$ 14 29,655$ 6 15,188$ 5 13,491$ 3 6,274$ Hotel/Motel 14 39,082 10 32,191 10 20,276 6 15,188 3 11,903 2 5,311 Car Wash - - 1 3,733 1 2,148 Office 6 8,346 - - 2 1,858 1 629 Othe
Slide 6: COVID-19 Loan Modification Type & Duration
COVID-19 Loan Modification Type & Duration 6 Modification TypeModification Type & Duration Note: Percentages are based on loan amounts as of September 30, 2021. Modification Duration
Slide 7: COVID-19 Loan Modification – Hotel & Motel CRE
COVID-19 Loan Modification – Hotel & Motel CRE 7 Geographic LocationModification Type & Duration Note: Percentages are based on loan amounts as of September 30, 2021. Average Information Average Loan Size: $2.7 million Weighted Average LTV: 59.5% Weighted Average DCR: 0.92
Slide 8: Balance Sheet Trend
Balance Sheet Trend 8 Gross Loans ($mm)Total Assets ($mm) Total Equity ($mm) & Book Value Per Share ($)Total Deposits ($mm)
Slide 9: Loan Trend
Loan Trend 9 Loan Origination ($mm)Loan Composition ($mm) Loan Yields (%) Commercial Real Estate Concentration (%)
Slide 10: Deposit Trend
Deposit Trend 10 Noninterest Bearing Deposits ($mm)Deposit Composition ($mm) Cost of Deposits (%) CD Maturity Schedule ($mm)
Slide 11: Earnings & Profitability
Earnings & Profitability 11 Noninterest Income ($mm)Net Interest Income ($mm) & Net Interest Margin (%) Noninterest Expense ($mm) Efficiency Ratio (%)
Slide 12: Earnings & Profitability
Earnings & Profitability 12 Pre-Provision Net Revenue ($mm)Provision for Loan Losses ($mm) Net Income ($mm) & Diluted EPS ($) Return on Assets & Return on Equity (%)
Slide 13: Net Interest Margin Trend
Source: Target Fed Funds Rate per Federal Open Market Committee guidance. Net Interest Margin Trend 13
Slide 14: Asset Quality
Asset Quality 14 Criticized Loans ($mm)Nonperforming Loans ($mm) Net Charge-Offs ($mm)Allowance for Loan Losses ($mm)
Slide 15: Liquidity & Capital
Liquidity & Capital 15 Total Liquidity ($mm)On Balance Sheet Liquidity ($mm) Tier 1 Leverage ($mm) Total Risk Based Capital ($mm)
Slide 16: Non-GAAP Reconciliation Pre-Provision Net Revenue
Non-GAAP Reconciliation 16 Pre-Provision Net Revenue ($ in thousands) 3Q21 2Q21 1Q21 4Q20 3Q20 Interest income 17,355$ 15,349$ 13,632$ 13,375$ 13,016$ Interest expense 766 763 877 1,194 1,597 Net interest income 16,589 14,586 12,755 12,181 11,419 Noninterest income 3,542 2,220 2,966 3,392 3,021 Noni
Slide 17: Non-GAAP Reconciliation Adjusted Allowance to Gross Loans Ratio
Non-GAAP Reconciliation 17 Adjusted Allowance to Gross Loans Ratio ($ in thousands) 2Q21 2Q21 1Q21 4Q20 3Q20 Gross loans 1,231,821$ 1,245,866$ 1,155,872$ 1,099,736$ 1,072,790$ Less: Purchased loans (83,025) (88,438) — — — PPP loans (1) (64,574) (97,673) (113,551) (64,906) (64,634) Adjusted gross loa