OP BancorpNASDAQ: OPBK

OP Bancorp Reports Third Quarter 2026 Net Income of $7.8 Million, Diluted EPS of $0.52

Oct 22, 2026 at 4:30 PM EDT · Issued by OP Bancorp via Business Wire

On 6ix: 6ix.com/news/op-bancorp-reports-third-quarter-2026-net-income-of-dollar78-million-diluted-eps-of-dollar052

LOS ANGELES--(BUSINESS WIRE)--OP Bancorp (the “Company”) (NASDAQ: OPBK), parent company of Open Bank, today reported:


($ in thousands, except per share data)	As of and For the Quarter									Third Quarter Highlights
($ in thousands, except per share data)		3Q2026			2Q2026			3Q2025		Comparisons reflect 3Q26 vs. 2Q26
Income Statement:										Income Statement
Net interest income	$	22,207		$	20,068		$	20,346		Revenue growth driven by higher net interest income. Net interest income increased, supported by continued loan growth. Higher provision reflected loan growth and changes in criticized loans.
Noninterest income		5,295			5,651			4,130
Revenue		27,502			25,719			24,476
Provision for (reversal of) credit losses		1,597			(149	)		1,175
Noninterest expense		15,512			14,826			13,629
Net income	$	7,763		$	7,978		$	6,703
Diluted Earnings Per Share (“EPS”)	$	0.52		$	0.53		$	0.45
Net interest margin ⁽¹⁾		3.27	%		3.08	%		3.26	%
Efficiency ratio ⁽²⁾		56.40			57.64			55.68
Balance Sheet:										Balance Sheet
Average loans ⁽³⁾	$	2,334,125		$	2,253,270		$	2,132,230		Average loans increased 4%. Average deposits increased 4%.
Average deposits		2,408,059			2,315,821			2,229,591		Average loans increased 4%. Average deposits increased 4%.
Credit Quality:										Credit Quality
Net charge-offs ⁽¹⁾ to average gross loans		0.14	%		0.03	%		0.04	%	Net charge-offs increased but remained relatively low.
Allowance for credit losses on loans to gross loans		1.26			1.24			1.27		Allowance coverage remained adequate.
Selected Metrics:										Performance and Capital
Book value per share	$	16.07		$	15.99		$	14.88		Book value per share continued to increase, reflecting growth in shareholders’ equity.
Return on average assets ("ROAA") ⁽¹⁾		1.11	%		1.18	%		1.04	%	ROAA and ROAE remained robust.
Return on average equity ("ROAE") ⁽¹⁾		12.94			13.61			12.36		ROAA and ROAE remained robust.
Shareholders' equity to asset ratio		8.54			8.70			8.47		The Company maintained a solid equity position.
Tier 1 leverage ratio		9.09			9.21			9.01		Tier 1 leverage remained robust, supporting future growth.


(1)		Annualized.
(2)		Represents noninterest expense divided by the sum of net interest income and noninterest income.
(3)		Includes loans held-for-sale.

Sang K. Oh, President and Chief Executive Officer:

“We delivered solid results in the third quarter, with net income of $7.8 million and diluted EPS of $0.52. Continued loan growth supported higher net interest income and further expansion in net interest margin. Book value per share continued to increase, reflecting growth in shareholders’ equity, while we maintained appropriate capital levels. As we enter the final quarter of 2026, we remain committed to sustainable growth, disciplined risk management and operating efficiency,” said Sang K. Oh, President and Chief Executive Officer.

INCOME STATEMENT HIGHLIGHTS

Net Interest Income and Net Interest Margin


($ in thousands)	For the Three Months Ended						% Change 3Q2026 vs.
($ in thousands)	3Q2026		2Q2026		3Q2025		2Q2026		3Q2025
Interest Income
Interest income	$	41,377	$	38,193	$	38,522	8	%	7	%
Interest expense		19,170		18,125		18,176	6		5
Net interest income	$	22,207	$	20,068	$	20,346	11	%	9	%


($ in thousands)	For the Three Months Ended												Average Yield/Rate Change 3Q2026 vs.
	3Q2026				2Q2026				3Q2025				Average Yield/Rate Change 3Q2026 vs.
	Interest Income/ Expense		Average Yield/Rate⁽¹⁾		Interest Income/ Expense		Average Yield/Rate⁽¹⁾		Interest Income/ Expense		Average Yield/Rate⁽¹⁾		2Q2026	3Q2025
Interest-earning Assets:
Loans	$	37,627	6.41	%	$	35,731	6.36	%	$	35,001	6.52	%	5 bps	(11) bps
Total interest-earning assets		41,377	6.08			38,193	5.87			38,522	6.16		21 bps	(8) bps
Interest-bearing Liabilities:
Interest-bearing deposits		17,905	3.79			16,891	3.77			17,442	4.07		2 bps	(28) bps
Total interest-bearing liabilities		19,170	3.84			18,125	3.82			18,176	4.06		2 bps	(22) bps
Ratios:
Net interest income / interest rate spreads		22,207	2.24			20,068	2.05			20,346	2.10		19 bps	14 bps
Net interest margin			3.27				3.08				3.26		19 bps	1 bps
Total deposits / cost of deposits		17,905	2.95			16,891	2.93			17,442	3.10		2 bps	(15) bps
Total funding liabilities / cost of funds		19,170	3.03			18,125	3.00			18,176	3.13		3 bps	(10) bps


(1)		Annualized.


($ in thousands)	For the Three Months Ended												Average Yield Change 3Q2026 vs.
	3Q2026				2Q2026				3Q2025				Average Yield Change 3Q2026 vs.
	Interest Income		Average Yield ⁽¹⁾		Interest Income		Average Yield ⁽¹⁾		Interest Income		Average Yield ⁽¹⁾		2Q2026	3Q2025
Loan Yield Component:
Contractual interest rate	$	36,973	6.30	%	$	35,335	6.29	%	$	34,263	6.39	%	1 bps	(9) bps
Recurring accretion / amortization		239	0.04			226	0.04			299	0.05		— bps	(1) bps
Nonrecurring ⁽²⁾		415	0.07			170	0.03			439	0.08		4 bps	(1) bps
Yield on loans	$	37,627	6.41	%	$	35,731	6.36	%	$	35,001	6.52	%	5 bps	(11) bps


(1)		Annualized.
(2)		Includes nonaccrual loan interest recognized or reversed, prepayment penalties and other fees, and accelerated discounts and premiums associated with loan payoffs.

Third Quarter 2026 vs. Second Quarter 2026

Net interest income increased by $2.1 million, or 11%, primarily driven by continued loan growth and the normalization of Federal Reserve Bank account income following a prior-quarter accrual adjustment. These benefits were partially offset by higher interest expense resulting from growth in average interest-bearing deposit balances. As a result, net interest margin increased by 19 basis points to 3.27%.

Interest-bearing Deposits in Other Banks: Interest income increased by $1.1 million, primarily reflecting the absence of a one-time Federal Reserve Bank accrual adjustment recorded in the prior quarter, as well as higher average balances.
Loans: Interest income increased by $1.9 million, driven largely by an $80.9 million or 4% increase in average loan balances, reflecting growth in CRE and home mortgage loans, along with a 5-basis-point increase in average loan yield to 6.41%.
Deposits: Interest expense increased by $1.0 million, primarily due to a $76.4 million or 4% increase in average interest-bearing deposit balances, including growth in money market and time deposit accounts. Despite the higher balances, the average cost of interest-bearing deposits increased only 2 basis points to 3.79%, reflecting relatively stable funding costs during the quarter.

Third Quarter 2026 vs. Third Quarter 2025

Net interest income increased by $1.9 million, or 9%, primarily driven by balance sheet growth and lower deposit rates. These favorable factors were partially offset by lower loan yields. As a result, the net interest margin increased by one basis point to 3.27%.

Loans: Interest income increased by $2.6 million, largely attributable to a $201.9 million increase in average loan balances, reflecting continued growth in CRE loans. The increase was partially offset by an 11-basis-point decline in loan yields, reflecting the impact of the federal funds rate cuts during the prior year and the repricing of adjustable-rate loans and newly originated loans.
Deposits: Interest expense increased by $463 thousand, mainly due to a $173.3 million increase in average interest-bearing deposit balances, driven mainly by growth in time deposits. The increase was partially offset by a 28-basis-point decline in costs of interest-bearing deposits, reflecting the repricing of time deposits and money market accounts following the federal funds rate cuts.

Provision for Credit Losses


($ in thousands)	For the Three Months Ended								$ Change 3Q2026 vs.
($ in thousands)	3Q2026		2Q2026			3Q2025			2Q2026		3Q2025
Provision for (reversal of) credit losses on loans	$	1,557	$	(131	)	$	1,206		$	1,688	$	351
Provision for (reversal of) credit losses on off-balance sheet exposure		40		(18	)		(31	)		58		71
Provision for (reversal of) credit losses	$	1,597	$	(149	)	$	1,175		$	1,746	$	422

Third Quarter 2026 vs. Second Quarter 2026

Provision for credit losses on loans increased by $1.7 million. The increase primarily reflected higher general reserve requirements associated with loan growth and changes in credit quality, including an increase in criticized loans. Higher specific reserves due to lower net collateral values of individually evaluated loans also contributed to the increase.

Third Quarter 2026 vs. Third Quarter 2025

Provision for credit losses on loans increased by $351 thousand. The increase primarily reflected higher specific reserves due to lower net collateral values of individually evaluated loans and higher general reserve requirements associated with loan growth, partially offset by lower qualitative reserve requirements.

Noninterest Income


($ in thousands)	For the Three Months Ended						% Change 3Q2026 vs.
($ in thousands)	3Q2026		2Q2026		3Q2025		2Q2026		3Q2025
Noninterest Income
Service charges on deposits	$	468	$	515	$	725	(9	)%	(35	)%
Loan servicing fees, net of amortization		980		974		724	1		35
Gains on sale of loans		3,277		3,370		2,037	(3	)	61
Other income		570		792		644	(28	)	(11	)
Total noninterest income	$	5,295	$	5,651	$	4,130	(6	)%	28	%

Third Quarter 2026 vs. Second Quarter 2026

Noninterest income decreased by $356 thousand, or 6%, primarily driven by lower other income.

Gains on Sale of Loans: Decreased by $93 thousand, primarily reflecting a lower average premium rate, partially offset by higher SBA loan sales volume. The Bank sold $51.1 million in SBA loans at an average premium rate of 8.06%, compared with $49.1 million sold at an average premium rate of 8.17% in the prior period.
Other Income: Decreased by $222 thousand, mainly due to higher unrealized losses on CRA mutual funds from higher market interest rates.

Third Quarter 2026 vs. Third Quarter 2025

Noninterest income increased by $1.2 million, or 28%, primarily due to higher gains on sale of loans.

Gains on Sale of Loans: Increased by $1.2 million, driven by stronger SBA loan sale activity and higher premium rates. The Bank sold $51.1 million in SBA loans at an average premium rate of 8.06%, compared with $36.8 million sold at an average premium rate of 6.71% in the prior period.

Noninterest Expense


($ in thousands)	For the Three Months Ended						% Change 3Q2026 vs.
($ in thousands)	3Q2026		2Q2026		3Q2025		2Q2026		3Q2025
Noninterest Expense
Salaries and employee benefits	$	9,452	$	9,733	$	8,892	(3	)%	6	%
Occupancy and equipment		1,827		1,901		1,676	(4	)	9
Data processing and communication		513		380		263	35		95
Professional fees		1,129		454		419	149		169
FDIC insurance and regulatory assessments		385		387		428	(1	)	(10	)
Promotion and advertising		224		104		126	115		78
Directors’ fees		155		164		151	(5	)	3
Foundation donation and other contributions		750		811		671	(8	)	12
Other expenses		1,077		892		1,003	21		7
Total noninterest expense	$	15,512	$	14,826	$	13,629	5	%	14	%

Third Quarter 2026 vs. Second Quarter 2026

Noninterest expense increased by $686 thousand, or 5%, primarily due to higher professional fees.

Professional Fees: Increased by $675 thousand, primarily due to higher non-recurring legal and professional service expenses incurred during the quarter.

Third Quarter 2026 vs. Third Quarter 2025

Noninterest expense increased by $1.9 million, or 14%, primarily due to higher professional fees and salaries and employee benefits.

Salaries and Employee Benefits: Increased by $560 thousand, primarily due to staffing growth, annual salary adjustments effective April 2026, and higher incentive accruals associated with increased SBA loan production.
Professional Fees: Increased by $710 thousand, primarily due to higher non-recurring legal and professional service expenses compared to the prior year.

Income Tax Expense

Third Quarter 2026 vs. Second Quarter 2026

Income tax expense decreased by $434 thousand to $2.6 million, primarily due to lower pre-tax income and a lower effective tax rate. The effective tax rate decreased to 25.3% from 27.8%, primarily due to return-to-provision adjustments associated with the prior-year tax returns.

Third Quarter 2026 vs. Third Quarter 2025

Income tax expense decreased by $339 thousand to $2.6 million, primarily reflecting a lower effective tax rate, partially offset by higher pre-tax income. The effective tax rate decreased to 25.3% from 30.7%, mainly due to the absence of a one-time deferred tax asset revaluation recognized in the prior-year period and return-to-provision adjustments associated with the prior-year tax returns.

BALANCE SHEET HIGHLIGHTS

Loans


($ in thousands)	As of						% Change 3Q2026 vs.
($ in thousands)	3Q2026		2Q2026		3Q2025		2Q2026		3Q2025
CRE	$	1,199,046	$	1,190,117	$	1,092,808	1	%	10	%
SBA		302,201		278,554		256,211	8		18
C&I		186,444		221,623		214,419	(16	)	(13	)
Home mortgage		600,017		568,512		587,641	6		2
Consumer & other		121		255		138	(53	)	(12	)
Gross loans	$	2,287,829	$	2,259,061	$	2,151,217	1	%	6	%

The following table summarizes the loan activity for the periods indicated:


($ in thousands)	For the Three Months Ended
($ in thousands)		3Q2026			2Q2026			3Q2025
Beginning Balance	$	2,259,061		$	2,234,259		$	2,071,580
Originations		149,094			169,340			130,695
Net change in line utilization		(27,340	)		35,399			31,167
Purchases		19,593			5,426			8,930
Sales		(51,102	)		(51,907	)		(36,136	)
Payoffs & paydowns		(84,652	)		(123,664	)		(71,526	)
Other		23,175			(9,792	)		16,507
Total		28,768			24,802			79,637
Ending balance	$	2,287,829		$	2,259,061		$	2,151,217

As of September 30, 2026 vs. June 30, 2026

Gross loans increased by $28.8 million or 1%, primarily reflecting lower CRE payoffs, partially offset by lower line utilization in C&I loans.

As of September 30, 2026 vs. September 30, 2025

Gross loans increased by $136.6 million or 6%, primarily driven by growth in CRE and SBA loans from originations, partially offset by lower line utilization in C&I loans.

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 3Q2026 vs.
	3Q2026				2Q2026				3Q2025				2Q2026		3Q2025
	Amount		Rate		Amount		Rate		Amount		Rate		2Q2026		3Q2025
CRE	$	51,654	6.30	%	$	92,042	6.78	%	$	98,799	6.36	%	(44	)%	(48	)%
SBA		29,611	7.96			32,403	7.94			15,051	8.72		(9	)	97
C&I		14,083	6.41			8,321	7.28			9,984	6.96		69		41
Home mortgage		53,746	6.09			36,574	5.94			6,861	6.69		47		683
Gross loans ⁽¹⁾	$	149,094	6.56	%	$	169,340	6.85	%	$	130,695	6.69	%	(12	)%	14	%


(1)		Excludes changes in line utilization.

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


($ in thousands)	As of
	3Q2026				2Q2026				3Q2025
	%		Rate		%		Rate		%		Rate
Fixed rate	27	%	5.78	%	28	%	5.77	%	31	%	5.61	%
Hybrid rate	42		6.12		41		6.05		41		5.89
Variable rate	31		6.80		31		6.90		28		8.02
Gross loans	100	%	6.24	%	100	%	6.24	%	100	%	6.40	%

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


($ in thousands)	As of September 30, 2026
	Within One Year				One Year Through Five Years				After Five Years				Total
	Amount		Rate		Amount		Rate		Amount		Rate		Amount		Rate
Fixed rate	$	150,633	5.49	%	$	276,723	6.57	%	$	189,074	4.86	%	$	616,430	5.78	%
Hybrid rate		—	—			208,068	5.71			762,455	6.23			970,523	6.12
Variable rate		112,676	7.14			179,254	6.82			408,946	6.70			700,876	6.80
Gross loans	$	263,309	6.20	%	$	664,045	6.37	%	$	1,360,475	6.18	%	$	2,287,829	6.24	%

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 3Q2026 vs.
($ in thousands)		3Q2026			2Q2026			3Q2025			2Q2026			3Q2025
Allowance for credit losses on loans, beginning	$	28,100		$	28,406		$	26,286		$	(306	)	$	1,814
Provision for (reversal of) credit losses on loans		1,557			(131	)		1,206			1,688			351
Gross charge-offs		(922	)		(224	)		(195	)		(698	)		(727	)
Gross recoveries		101			49			2			52			99
Net charge-offs		(821	)		(175	)		(193	)		(646	)		(628	)
Allowance for credit losses on loans, ending	$	28,836		$	28,100		$	27,299		$	736		$	1,537

Allowance for credit losses on off-balance sheet exposure, beginning	$	268		$	286		$	360		$	(18	)	$	(92	)
Provision for (reversal of) credit losses on off-balance sheet exposure		40			(18	)		(31	)		58			71
Allowance for credit losses on off-balance sheet exposure, ending	$	308		$	268		$	329		$	40		$	(21	)

Asset Quality


($ in thousands)	As of and For the Three Months Ended									% or Basis Point Change 3Q2026 vs.
($ in thousands)		3Q2026			2Q2026			3Q2025		2Q2026		3Q2025
Accruing loans 30-89 days past due	$	12,201		$	10,486		$	5,386		16	%	127	%
As a % of gross loans		0.53	%		0.46	%		0.25	%	7 bps		28 bps

Nonaccrual loans ⁽¹⁾⁽²⁾	$	18,032		$	16,372		$	12,312		10	%	46	%
Loans 90 days or more past due, accruing		—			892			—		(100	)	—
Nonperforming loans ⁽²⁾		18,032			17,264			12,312		4		46
OREO		—			—			845		—		(100	)
Nonperforming assets ⁽²⁾	$	18,032		$	17,264		$	13,157		4	%	37	%

Nonperforming loans to gross loans		0.79	%		0.76	%		0.57	%	3 bps		22 bps
Nonperforming assets to gross loans & OREO		0.79			0.76			0.61		3 bps		18 bps
Nonperforming assets to total assets		0.64			0.63			0.50		1 bps		14 bps

Criticized loans ⁽³⁾⁽⁴⁾ by risk categories:
Special mention loans	$	51,728		$	8,834		$	8,695		486	%	495	%
Classified loans ⁽⁵⁾		25,828			24,594			19,380		5		33
Total criticized loans	$	77,556		$	33,428		$	28,075		132	%	176	%

Classified loans to gross loans		1.13	%		1.09	%		0.90	%	4 bps		23 bps
Criticized loans to gross loans		3.39			1.48			1.31		191 bps		208 bps

Allowance for credit losses ratios:
As a % of gross loans		1.26	%		1.24	%		1.27	%	2 bps		(1) bps
As a % of nonperforming loans		160			163			222		(3	)%	(62	)%
As a % of nonperforming assets		160			163			207		(3	)	(47	)
As a % of classified loans		112			114			141		(2	)	(29	)
As a % of criticized loans		37			84			97		(47	)	(60	)

Net charge-offs	$	821		$	175		$	193		NM		325	%
Net charge-offs ⁽⁶⁾ to average gross loans		0.14			0.03			0.04		11 bps		10 bps


NM — Not Meaningful
(1)		Excludes loans held-for-sale.
(2)		Excludes the guaranteed portion of loans totaling $38.3 million, $30.5 million and $17.6 million as of September 30, 2026, June 30, 2026 and September 30, 2025, respectively.
(3)		Excludes the guaranteed portion of loans totaling $43.5 million, $35.8 million and $20.8 million as of September 30, 2026, June 30, 2026 and September 30, 2025, respectively.
(4)		Consists of special mention, substandard, doubtful and loss categories.
(5)		Consists of substandard, doubtful and loss categories.
(6)		Annualized.

Overall credit quality remained generally sound during the quarter. We believe the allowance for credit losses on loans remained adequate at 1.26% of gross loans as of September 30, 2026.

Accruing loans 30-89 days past-due increased by $1.7 million, primarily driven by two CRE loans totaling $7.7 million moving into this category, partially offset by $6.3 million of loans returning to less than 30 days past due, primarily home mortgage and SBA loans.
Nonperforming loans increased by $768 thousand, primarily driven by $2.2 million of loans migrating into nonaccrual status, partially offset by a $1.1 million decrease in the balances of existing nonperforming loans.
Criticized loans increased by $44.1 million, primarily driven by $45.7 million of loans newly entering the category during the quarter. The new additions were primarily CRE loans rated Special Mention.
Special Mention loans increased by $42.9 million, primarily driven by four relationships totaling $41.5 million. An $8.2 million C&I relationship and a $5.9 million CRE relationship were downgraded primarily due to DCR covenant shortfalls but remain current. A $6.2 million CRE loan is in early delinquency due to sponsor liquidity constraints, while a $21.3 million CRE developer relationship in downtown Los Angeles remains current and performing, with the property being marketed for sale. Management continues to closely monitor these relationships and believes there is a viable path toward a positive resolution through repayment or credit upgrades over the next few quarters.

Deposits


($ in thousands)	As of												% Change 3Q2026 vs.
	3Q2026				2Q2026				3Q2025				% Change 3Q2026 vs.
	Amount		%		Amount		%		Amount		%		2Q2026		3Q2025
Noninterest-bearing deposits	$	539,257	22	%	$	552,300	23	%	$	543,972	24	%	(2	)%	(1	)%
Money market deposits and others		429,464	18			426,501	18			402,891	18		1		7
Time deposits		1,461,706	60			1,389,538	59			1,326,554	58		5		10
Total deposits	$	2,430,427	100	%	$	2,368,339	100	%	$	2,273,417	100	%	3	%	7	%

As of September 30, 2026 vs. June 30, 2026

Total deposits increased by $62.1 million or 3%, primarily driven by a $72.2 million increase in time deposits. The growth was primarily attributable to higher retail time deposit balances from existing customer relationships and increased wholesale funding balances. These increases were partially offset by declines in noninterest-bearing deposits.

As of September 30, 2026 vs. September 30, 2025

Total deposits increased by $157.0 million or 7%, primarily driven by a $135.2 million increase in time deposits. The increase reflected continued growth in retail time deposit balances from both new and existing customer relationships, as customers continued to favor higher-yielding deposit products. Deposit growth also benefited from higher balances in wholesale time deposits and money market accounts.

The following table sets forth the maturity of time deposits as of September 30, 2026:


	As of September 30, 2026
($ 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)	$	341,630		$	280,753		$	101,700		$	92,911		$	1,596		$	818,590
Time deposits ($250 or less)		337,435			118,740			82,771			101,517			2,653			643,116
Total time deposits	$	679,065		$	399,493		$	184,471		$	194,428		$	4,249		$	1,461,706
Weighted average rate		3.95	%		3.89	%		3.96	%		4.12	%		3.46	%		3.96	%

CAPITAL

On October 22, 2026, the Company’s Board of Directors declared a quarterly cash dividend of $0.14 per share. The dividend is payable on or about November 19, 2026, to shareholders of record as of the close of business on November 5, 2026. The principal source of funds from which the Company pays dividends are the dividends received from the Bank. During the third quarter of 2026, no shares were repurchased under the repurchase program approved in August 2025.


	OP Bancorp ⁽¹⁾		Open Bank ⁽²⁾		Applicable Requirement ⁽²⁾
Community Bank Leverage Ratio (“CBLR”) ⁽²⁾
Tier 1 leverage	9.09		10.01		8.00
Risk-Based Capital Ratios ⁽²⁾:
Total capital	13.52	%	13.56	%	N/A
Tier 1 capital	11.18		12.31		N/A
CET1 capital	11.18		12.31		N/A


(1)		CBLR framework applies only to Open Bank, and OP Bancorp’s ratios are presented solely for information purposes.
(2)		Effective September 30, 2026, Open Bank elected the CBLR framework. Accordingly, Open Bank is no longer subject to the risk-based capital ratio requirements applicable under the generally applicable capital rules. Total capital, Tier 1 capital, and CET1 capital ratios are presented for informational purposes only, while the Tier 1 leverage ratio remains the primary regulatory capital measure under the CBLR framework.


OP Bancorp ⁽¹⁾										% or Basis Point Change 3Q2026 vs.
OP Bancorp ⁽¹⁾		3Q2026			2Q2026			3Q2025		2Q2026		3Q2025
Risk-Based Capital Ratios:
Total capital		13.52	%		13.32	%		12.17	%	20 bps		135 bps
Tier 1 capital		11.18			10.98			10.92		20 bps		26 bps
CET1 capital		11.18			10.98			10.92		20 bps		26 bps
Tier 1 leverage		9.09			9.21			9.01		(12) bps		8 bps
Risk-weighted Assets ($ in thousands)	$	2,278,084		$	2,267,359		$	2,126,986		0	%	7	%


(1)		CBLR framework applies only to Open Bank, and OP Bancorp’s ratios are presented solely for information purposes.

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 a 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 one loan production office in Bellevue, Washington. 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; Website: www.myopenbank.com.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain matters set forth herein constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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 II, Item 1A, of our Quarterly Report on Form 10-Q for the period ended June 30, 2026 under the heading “Risk Factors”, 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 except as required by applicable law.

CONSOLIDATED BALANCE SHEETS (unaudited)


($ in thousands, except share and per share data)	As of									% Change 3Q2026 vs.
($ in thousands, except share and per share data)		3Q2026			2Q2026			3Q2025		2Q2026		3Q2025
Assets
Cash and due from banks	$	21,915		$	21,812		$	10,931		0	%	100	%
Interest-bearing deposits with other banks		220,984			153,239			155,817		44		42
Cash and cash equivalents		242,899			175,051			166,748		39		46
AFS debt securities, at fair value		187,146			202,506			200,760		(8	)	(7	)
Other investments		18,711			18,824			17,164		(1	)	9
Loans held-for-sale		6,160			21,305			6,480		(71	)	(5	)
CRE		1,199,046			1,190,117			1,092,808		1		10
SBA		302,201			278,554			256,211		8		18
C&I		186,444			221,623			214,419		(16	)	(13	)
Home mortgage		600,017			568,512			587,641		6		2
Consumer and other		121			255			138		(53	)	(12	)
Gross loans		2,287,829			2,259,061			2,151,217		1		6
Allowance for credit losses on loans		(28,836	)		(28,100	)		(27,299	)	3		6
Net loans		2,258,993			2,230,961			2,123,918		1		6
Premises and equipment, net		5,185			5,298			6,995		(2	)	(26	)
Accrued interest receivable		10,338			10,172			10,337		2		0
Servicing assets		10,619			10,280			10,429		3		2
Company owned life insurance		24,159			23,975			23,437		1		3
Deferred tax assets, net		15,046			12,456			12,099		21		24
Other real estate owned ("OREO")		—			—			845		—		(100	)
Operating right-of-use assets		7,733			7,732			9,347		0		(17	)
Other assets		22,446			25,746			25,655		(13	)	(13	)
Total assets	$	2,809,435		$	2,744,306		$	2,614,214		2	%	7	%
Liabilities and Shareholders' Equity
Liabilities:
Noninterest-bearing	$	539,257		$	552,300		$	543,972		(2	)%	(1	)%
Money market and others		429,464			426,501			402,891		1		7
Time deposits greater than $250		818,590			746,386			667,883		10		23
Other time deposits		643,116			643,152			658,671		0		(2	)
Total deposits		2,430,427			2,368,339			2,273,417		3		7
FHLB advances		75,000			75,000			75,000		—		—
Subordinated note		24,650			24,629			—		0		NM
Accrued interest payable		16,524			15,949			15,968		4		3
Operating lease liabilities		9,752			9,865			11,826		(1	)	(18	)
Other liabilities		13,135			11,881			16,504		11		(20	)
Total liabilities		2,569,488			2,505,663			2,392,715		3		7
Shareholders' equity:
Common stock		73,018			73,018			72,984		—		0
Additional paid-in capital		12,254			12,128			11,658		1		5
Retained earnings		170,296			164,624			148,031		3		15
Accumulated other comprehensive loss, net of tax		(15,621	)		(11,127	)		(11,174	)	40		40
Total shareholders’ equity		239,947			238,643			221,499		1		8
Total liabilities and shareholders' equity	$	2,809,435		$	2,744,306		$	2,614,214		2	%	7	%

Shares of common stock outstanding, at period-end		14,932,615			14,926,750			14,885,614		0	%	0	%
Book value per share	$	16.07		$	15.99		$	14.88		1	%	8	%
Shareholders' equity to asset ratio		8.54	%		8.70	%		8.47	%	(2	)%	1	%

NM — Not Meaningful

CONSOLIDATED STATEMENTS OF INCOME (unaudited)


($ in thousands, except share and per share data)	For the Three Months Ended									Change 3Q2026 vs.
($ in thousands, except share and per share data)		3Q2026			2Q2026			3Q2025			2Q2026			3Q2025
Interest income
Interest and fees on loans	$	37,627		$	35,731		$	35,001			5	%		8	%
Interest on AFS debt securities		1,775			1,824			1,699			(3	)		4
Other interest income		1,975			638			1,822			210			8
Total interest income		41,377			38,193			38,522			8			7
Interest expense
Interest on deposits		17,905			16,891			17,442			6			3
Interest on borrowings		775			744			734			4			6
Interest on subordinated note		490			490			—			—			NM
Total interest expense		19,170			18,125			18,176			6			5
Net interest income		22,207			20,068			20,346			11			9
Provision for (reversal of) credit losses		1,597			(149	)		1,175			NM			36
Net interest income after provision for credit losses		20,610			20,217			19,171			2			8
Noninterest income
Service charges on deposits		468			515			725			(9	)		(35	)
Loan servicing fees, net of amortization		980			974			724			1			35
Gains on sale of loans		3,277			3,370			2,037			(3	)		61
Other income		570			792			644			(28	)		(11	)
Total noninterest income		5,295			5,651			4,130			(6	)		28
Noninterest expense
Salaries and employee benefits		9,452			9,733			8,892			(3	)		6
Occupancy and equipment		1,827			1,901			1,676			(4	)		9
Data processing and communication		513			380			263			35			95
Professional fees		1,129			454			419			149			169
FDIC insurance and regulatory assessments		385			387			428			(1	)		(10	)
Promotion and advertising		224			104			126			115			78
Directors’ fees		155			164			151			(5	)		3
Foundation donation and other contributions		750			811			671			(8	)		12
Other expenses		1,077			892			1,003			21			7
Total noninterest expense		15,512			14,826			13,629			5			14
Income before income tax expense		10,393			11,042			9,672			(6	)		7
Income tax expense		2,630			3,064			2,969			(14	)		(11	)
Net income	$	7,763		$	7,978		$	6,703			(3	)%		16	%

EPS - basic	$	0.52		$	0.54		$	0.45		$	(0.02	)	$	0.07
EPS - diluted		0.52			0.53			0.45			(0.01	)		0.07

Weighted average shares:
- Basic		14,932,615			14,903,398			14,885,614			0	%		0	%
- Diluted		14,956,018			14,942,130			14,919,474			0			0

ROAA ⁽¹⁾		1.11	%		1.18	%		1.04	%	(7) bps			7 bps
ROAE ⁽¹⁾		12.94			13.61			12.36		(67) bps			58 bps
Efficiency ratio ⁽²⁾		56.40			57.64			55.68		(124) bps			72 bps


NM — Not Meaningful
(1)		Annualized.
(2)		Represents noninterest expense divided by the sum of net interest income and noninterest income.

CONSOLIDATED STATEMENTS OF INCOME (unaudited)


($ in thousands, except share and per share data)	For the Nine Months Ended
($ in thousands, except share and per share data)		3Q2026			3Q2025		Change
Interest income
Interest and fees on loans	$	108,237		$	100,953			7	%
Interest on AFS debt securities		5,360			4,632			16
Other interest income		4,510			5,461			(17	)
Total interest income		118,107			111,046			6
Interest expense
Interest on deposits		51,641			51,525			0
Interest on borrowings		2,198			2,036			8
Interest on subordinated note		1,470			—			NM
Total interest expense		55,309			53,561			3
Net interest income		62,798			57,485			9
Provision for credit losses		1,860			3,117			(40	)
Net interest income after provision for credit losses		60,938			54,368			12
Noninterest income
Service charges on deposits		1,446			2,742			(47	)%
Loan servicing fees, net of amortization		2,676			2,631			2
Gains on sale of loans		8,697			5,497			58
Other income		2,159			2,044			6
Total noninterest income		14,978			12,914			16
Noninterest expense
Salaries and employee benefits		28,461			26,743			6
Occupancy and equipment		5,539			4,841			14
Data processing and communication		1,304			865			51
Professional fees		1,982			1,244			59
FDIC insurance and regulatory assessments		1,190			1,421			(16	)
Promotion and advertising		448			514			(13	)
Directors’ fees		463			529			(12	)
Foundation donation and other contributions		2,286			1,863			23
Other expenses		2,898			3,460			(16	)
Total noninterest expense		44,571			41,480			7
Income before income tax expense		31,345			25,802			21
Income tax expense		8,370			7,206			16
Net income	$	22,975		$	18,596			24	%

EPS - basic	$	1.54		$	1.25		$	0.29
EPS - diluted		1.54			1.25			0.29

Weighted average shares:
- Basic		14,909,133			14,867,626			0	%
- Diluted		14,941,352			14,894,309			0	%

ROAA ⁽¹⁾		1.13	%		0.99	%	14 bps
ROAE ⁽¹⁾		13.03			11.70		133 bps
Efficiency ratio ⁽²⁾		57.31			58.92		(161) bps


NM — Not Meaningful
(1)		Annualized.
(2)		Represents noninterest expense divided by the sum of net interest income and noninterest income.

ASSET QUALITY BY LOAN TYPE


($ in thousands)	3Q2026		2Q2026		3Q2025
Accruing delinquent loans 30-89 days past due by loan type:
CRE	$	6,150	$	723	$	—
SBA		—		3,173		1,390
C&I		—		26		617
Home mortgage		—		3,152		852
Total 30-59 days		6,150		7,074		2,859

CRE		1,521		—		—
SBA		1,574		972		378
C&I		—		77		—
Home mortgage		2,956		2,363		2,149
Total 60-89 days		6,051		3,412		2,527

CRE		7,671		723		—
SBA		1,574		4,145		1,768
C&I		—		103		617
Home mortgage		2,956		5,515		3,001
Total accruing delinquent loans 30-89 days past due	$	12,201	$	10,486	$	5,386

Nonaccrual loans ⁽¹⁾ by loan type:
CRE	$	4,380	$	3,747	$	2,365
SBA		11,945		11,200		8,538
C&I		12		—		—
Home mortgage		1,695		1,425		1,409
Total nonaccrual	$	18,032	$	16,372	$	12,312

Criticized loans ⁽²⁾ by loan type:
CRE	$	41,950	$	7,217	$	9,345
SBA		22,886		21,859		14,925
C&I		9,497		1,390		864
Home mortgage		3,223		2,962		2,941
Total criticized	$	77,556	$	33,428	$	28,075


(1)		Excludes the guaranteed portion of loans that were in liquidation totaling $38.3 million, $30.5 million and $17.6 million as of September 30, 2026, June 30, 2026 and September 30, 2025, respectively.
(2)		Excludes the guaranteed portion of loans that were in liquidation totaling $43.5 million, $35.8 million and $20.8 million as of September 30, 2026, June 30, 2026 and September 30, 2025, respectively.

AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS


	For the Three Months Ended
	3Q2026						2Q2026							3Q2025
($ 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 with other banks	$	153,856	$	1,469	3.74	%	$	128,022	$	416	1.29	%	⁽²⁾	$	134,263	$	1,502	4.38	%
Other investments		18,803		506	10.76			18,531		222	4.79				17,112		320	7.48
AFS debt securities, at fair value		197,843		1,775	3.59			206,877		1,824	3.53				199,766		1,699	3.40
CRE		1,203,069		19,385	6.39			1,171,097		18,691	6.40				1,065,460		16,689	6.21
SBA		327,567		6,568	7.95			314,060		6,077	7.76				286,556		6,841	9.47
C&I		218,623		3,758	6.82			206,978		3,517	6.82				188,146		3,537	7.46
Home mortgage		584,220		7,903	5.41			560,842		7,437	5.30				591,939		7,931	5.36
Consumer and other		646		13	7.82			293		9	11.76				129		3	9.86
Loans ⁽²⁾		2,334,125		37,627	6.41			2,253,270		35,731	6.36				2,132,230		35,001	6.52
Total interest-earning assets		2,704,627		41,377	6.08			2,606,700		38,193	5.87				2,483,371		38,522	6.16
Noninterest-earning assets		87,991						87,072							83,238
Total assets	$	2,792,618					$	2,693,772						$	2,566,609

Interest-bearing liabilities:
Money market deposits and others	$	453,649	$	3,713	3.25	%	$	404,975	$	3,174	3.14	%		$	425,248	$	3,793	3.54	%
Time deposits		1,420,357		14,192	3.96			1,392,628		13,717	3.95				1,275,417		13,649	4.25
Total interest-bearing deposits		1,874,006		17,905	3.79			1,797,603		16,891	3.77				1,700,665		17,442	4.07
Borrowings		81,359		775	3.78			81,816		744	3.65				76,250		734	3.82
Subordinated note		24,643		490	7.95			24,622		490	7.96				—		—	—
Total interest-bearing liabilities		1,980,008		19,170	3.84			1,904,041		18,125	3.82				1,776,915		18,176	4.06
Noninterest-bearing liabilities:
Noninterest-bearing deposits		534,053						518,218							528,926
Other noninterest-bearing liabilities		38,545						36,969							43,890
Total noninterest-bearing liabilities		572,598						555,187							572,816
Shareholders’ equity		240,012						234,544							216,878
Total liabilities and shareholders’ equity	$	2,792,618					$	2,693,772						$	2,566,609

Net interest income / interest rate spreads			$	22,207	2.24	%			$	20,068	2.05	%				$	20,346	2.10	%
Net interest margin					3.27	%					3.08	%						3.26	%

Cost of deposits & cost of funds:
Total deposits / cost of deposits	$	2,408,059	$	17,905	2.95	%	$	2,315,821	$	16,891	2.93	%		$	2,229,591	$	17,442	3.10	%
Total funding liabilities / cost of funds		2,514,061		19,170	3.03			2,422,259		18,125	3.00				2,305,841		18,176	3.13


	For the Nine Months Ended
	3Q2026							3Q2025
($ in thousands)	Average Balance		Interest Income/ Expense		Average Yield/Rate ⁽¹⁾			Average Balance		Interest Income/ Expense		Average Yield/Rate ⁽¹⁾
Interest-earning assets:
Interest-bearing deposits with other banks	$	142,329	$	3,212	2.98	%	⁽²⁾	$	135,439	$	4,522	4.40	%
Other investments		18,194		1,298	9.51				16,851		939	7.43
AFS debt securities, at fair value		203,296		5,360	3.52				188,258		4,632	3.28
CRE		1,176,405		55,890	6.35				1,031,854		47,681	6.18
SBA		311,610		18,624	7.99				278,621		19,666	9.44
C&I		212,765		10,828	6.80				198,512		10,982	7.40
Home mortgage		570,146		22,848	5.34				568,811		22,612	5.30
Consumer & other		849		47	7.36				146		12	10.85
Loans ⁽³⁾		2,271,775		108,237	6.37				2,077,944		100,953	6.49
Total interest-earning assets		2,635,594		118,107	5.99				2,418,492		111,046	6.13
Noninterest-earning assets		84,005							81,505
Total assets	$	2,719,599						$	2,499,997

Interest-bearing liabilities:
Money market deposits and others	$	417,510	$	9,897	3.17	%		$	396,168	$	10,463	3.53	%
Time deposits		1,401,268		41,744	3.98				1,250,518		41,062	4.39
Total interest-bearing deposits		1,818,778		51,641	3.80				1,646,686		51,525	4.18
Borrowings		79,690		2,198	3.69				67,290		2,036	4.05
Subordinated note		24,622		1,470	7.96				—		—	—
Total interest-bearing liabilities		1,923,090		55,309	3.85				1,713,976		53,561	4.18
Noninterest-bearing liabilities:
Noninterest-bearing deposits		523,061							532,867
Other noninterest-bearing liabilities		38,419							41,198
Total noninterest-bearing liabilities		561,480							574,065
Shareholders’ equity		235,029							211,956
Total liabilities and shareholders’ equity	$	2,719,599						$	2,499,997

Net interest income / interest rate spreads			$	62,798	2.14	%				$	57,485	1.95	%
Net interest margin					3.18	%						3.17	%

Cost of deposits & cost of funds:
Total deposits / cost of deposits	$	2,341,839	$	51,641	2.95	%		$	2,179,553	$	51,525	3.16	%
Total funding liabilities / cost of funds		2,446,151		55,309	3.02				2,246,843		53,561	3.19


(1)		Annualized.
(2)		Interest income includes a one-time $739 thousand adjustment recorded during the second quarter of 2026 related to the correction of prior-period interest accruals on the Federal Reserve Bank account.
(3)		Includes loans held-for-sale.

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