8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 25, 2019

OP BANCORP

(Exact name of registrant as specified in its charter)

California	001-38437	81-3114676
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

1000 Wilshire Blvd., Suite 500, Los Angeles, CA	90017
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (213) 892-9999

Not Applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (See General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, no par value	OPBK	NASDAQ Global Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☒

Item 2.02. Results of Operations and Financial Condition

On July 25, 2019, OP Bancorp, (the “Company”), the bank holding company of Open Bank (the “Bank”) issued a press release announcing preliminary unaudited results for the second quarter ended June 30, 2019. A copy of the press release is attached as Exhibit 99.1 to this Current Report and is incorporated herein by reference.

Item 8.01. Other Events

On July 25, 2019, OP Bancorp, (the “Company”), the bank holding company of Open Bank (the “Bank”) issued a press release announcing that its Board of Directors declared a quarterly cash dividend of $0.05 per common share. The cash dividend is payable on or about August 23, 2019 to all stockholders of record as of the close of business on August 9, 2019. A copy of the press release is attached as Exhibit 99.2 to this Current Report and is incorporated herein by reference.

The information in this report set forth under Item 2.02 and Item 8.01 of form 8-K and the exhibits hereto shall not be treated as “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933 or the Securities Act of 1934, except as expressly stated by specific reference in any such filing.

Item 9.01. Financial Statements and Exhibits

(D)    Exhibits.

99.1	Press Release of OP Bancorp, issued July 25, 2019, entitled “OP Bancorp Reports Second Quarter Result of 2019”.
99.2	Press Release of OP Bancorp, issued July 25, 2019, entitled “OP Bancorp Declares Quarterly Cash Dividend of $0.05 per Share”.

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EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release of OP Bancorp, issued July 25, 2019, entitled “OP Bancorp Reports Second Quarter Result of 2019”.
99.2	Press Release of OP Bancorp, issued July 25, 2019, entitled “OP Bancorp Declares Quarterly Cash Dividend of $0.05 per Share”.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	OP Bancorp
DATED: July 25, 2019	By:	/s/ Christine Oh
		Christine Oh
		Executive Vice President and
		Chief Financial Officer

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EX-99.1

Exhibit 99.1

OP Bancorp Reports Second Quarter Result of 2019

2019 Second Quarter Highlights:

• Net income totaled $3.8 million or $0.23 per diluted common share flat from the second quarter of 2018

• Net interest margin was 4.26% compared to 4.46% for the second quarter of 2018

• Return on average assets was 1.39% and return on average equity was 11.50% compared to 1.61% and 12.70%, respectively, for the second quarter of 2018

• Total assets of $1.13 billion, an increase of 15.1% from $979.4 million at June 30, 2018

• Net loans receivable of $937.5 million, an increase of 14.8% from $816.3 million at June 30, 2018

• Total deposits of $974.7 million, an increase of 18.4% from $823.4 million at June 30, 2018

• Nonperforming assets to total assets was 0.14% compared to 0.10% at June 30, 2018

LOS ANGELES, July 25, 2019 — OP Bancorp (the “Company”) (NASDAQ: OPBK), the holding company of Open Bank (the “Bank”), today reported unaudited financial results for the second quarter of 2019.  Net income for the second quarter of 2019 was $3.8 million, or $0.23 per diluted common share, compared with net income of $4.7 million, or $0.29 per diluted common share for the first quarter of 2019, and net income of $3.8 million, or $0.23 per diluted share for the second quarter of 2018. Excluding one-time gain on company owned life insurance, net income for the first quarter of 2019 was $3.8 million or $0.23 per diluted common share.

“We are pleased to report another strong quarter, with a net income of $3.8 million, or $0.23 per diluted common share for the three months ended June 30, 2019.  Our loans and deposits grew 15% and 18%, respectively, from the prior year, while maintaining strong asset quality. We maintained our noninterest bearing deposits at 28.2% of total deposits during this challenging environment,” commented Min Kim, President and Chief Executive Officer of OP Bancorp and Open Bank. Ms. Kim continued, “In April, we have successfully converted our Dallas loan production office to a full service branch with a commercial lending center in Carrollton, Texas.  With this expansion, we look forward to continued growth of our franchise not only in California but also in Texas.”

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Financial Highlights (unaudited)
(Dollars in thousands, except per share data)	As of or for the Three Months Ended
	June 30,			March 31,			June 30,
	2019			2019			2018
Income Statement Data:
Interest income	$	14,878		$	14,086		$	12,062
Interest expense		3,701			3,288			2,075
Net interest income		11,177			10,798			9,987
Provision for loan losses		401			0			33
Noninterest income		2,647			3,533			2,783
Noninterest expense		8,358			8,073			7,478
Income before taxes		5,065			6,258			5,259
Provision for income taxes		1,229			1,518			1,468
Net Income	$	3,836		$	4,740		$	3,791
Diluted earnings per share	$	0.23		$	0.29		$	0.23
Balance Sheet Data:
Loans held for sale	$	1,245		$	246		$	8,718
Gross loans, net of unearned income		947,006			913,064			826,040
Allowance for loan losses		9,525			9,619			9,723
Total assets		1,127,556			1,077,235			979,441
Deposits		974,672			929,402			823,373
Shareholders’ equity		135,482			132,376			121,393
Performance Ratios:
Return on average assets (annualized)		1.39	%		1.83	%		1.61	%
Return on average equity (annualized)		11.50	%		14.46	%		12.70	%
Net interest margin (annualized)		4.26	%		4.38	%		4.46	%
Efficiency ratio (1)		60.45	%		56.33	%		58.56	%
Credit Quality:
Nonperforming loans	$	1,556		$	1,580		$	991
Nonperforming assets		1,556			2,726			991
Net charge-offs to average gross loans (annualized)		0.21	%		0.01	%		0.01	%
Nonperforming assets to gross loans plus OREO		0.16	%		0.30	%		0.12	%
ALL to nonperforming loans		612	%		609	%		981	%
ALL to gross loans		1.01	%		1.05	%		1.18	%
Capital Ratios:
Total risk-based capital ratio		15.45	%		15.76	%		16.09	%
Tier 1 risk-based capital ratio		14.42	%		14.68	%		14.90	%
Common equity tier 1 ratio		14.42	%		14.68	%		14.90	%
Leverage ratio		12.24	%		12.73	%		12.91	%
(1) Represents noninterest expense divided by the sum of net interest income and noninterest income.

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Financial Highlights, excluding Gain on COLI
(Dollars in thousands, except per share data)	As of or for the Three Months Ended
	June 30,			March 31,			June 30,
	2019			2019			2018
Income before taxes, as reported	$	5,065		$	6,258		$	5,259
Gain on COLI		—			1,228			—
Provision for income taxes		1,229			1,254			1,468
Net Income	$	3,836		$	3,776		$	3,791
Diluted earnings per share	$	0.23		$	0.23		$	0.23
Return on average assets (annualized)		1.39	%		1.45	%		1.61	%
Return on average equity (annualized)		11.50	%		11.52	%		12.70	%

Financial Highlights (unaudited)
(Dollars in thousands, except per share data)	For the Six Months Ended
	June 30,			June 30,
	2019			2018
Income Statement Data:
Interest income	$	28,965		$	23,242
Interest expense		6,989			3,695
Net interest income		21,976			19,547
Provision for loan losses		401			609
Noninterest income		6,179			4,996
Noninterest expense		16,431			14,290
Income before taxes		11,323			9,644
Provision for income taxes		2,747			2,637
Net Income	$	8,576		$	7,007
Diluted earnings per share	$	0.52		$	0.45
Performance Ratios:
Return on average assets		1.60	%		1.52	%
Return on average equity		12.97	%		13.11	%
Net interest margin		4.32	%		4.51	%
Efficiency ratio (1)		58.36	%		58.22	%
(1) Represents noninterest expense divided by the sum of net interest income and noninterest income.

Financial Highlights, excluding Gain on COLI
(Dollars in thousands, except per share data)	For the Six Months Ended
	June 30,			June 30,
	2019			2018
Income before taxes, as reported	$	11,323		$	9,644
Gain on COLI		1,228			—
Provision for income taxes		2,565			2,637
Net Income	$	7,530		$	7,007
Diluted earnings per share	$	0.46		$	0.45
Return on average assets		1.41	%		1.52	%
Return on average equity		11.39	%		13.11	%

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Results of Operations

The reported interest income and yield on our loan portfolio are impacted by a number of components, including changes in the average contractual interest rate earned on loans and the amount of discount accretion on SBA loans.  The following table reconciles the contractual interest income and yield on our loan portfolio to the reported interest income and yield for the periods indicated.

	Three Months Ended
	June 30, 2019					March 31, 2019					June 30, 2018
(Dollars in thousands)	Interest & Fees		Yield			Interest & Fees		Yield			Interest & Fees		Yield
Contractual interest rate	$	13,298		5.72	%	$	12,480		5.69	%	$	11,046		5.34	%
SBA discount accretion		703		0.30	%		509		0.23	%		481		0.23	%
Amortization of net deferred fees/(costs)		38		0.02	%		132		0.06	%		98		0.05	%
Interest recognized on nonaccrual loans		-		0.00	%		-		0.00	%		9		0.00	%
Prepayment penalties and other fees		54		0.02	%		233		0.11	%		36		0.02	%
Yield on loans (as reported)	$	14,093		6.06	%	$	13,354		6.09	%	$	11,670		5.64	%

	Six Months Ended
	June 30, 2019					June 30, 2018
(Dollars in thousands)	Interest & Fees		Yield			Interest & Fees		Yield
Contractual interest rate	$	25,777		5.71	%	$	21,229		5.29	%
SBA discount accretion		1,212		0.27	%		1,048		0.26	%
Amortization of net deferred fees/(costs)		170		0.04	%		150		0.04	%
Interest recognized on nonaccrual loans		-		0.00	%		29		0.01	%
Prepayment penalties and other fees		288		0.06	%		61		0.02	%
Yield on loans (as reported)	$	27,447		6.08	%	$	22,517		5.61	%

Net interest income before provision for loan losses for the second quarter of 2019 was $11.2 million, an increase of $379,000, or 3.5%, compared to $10.8 million for the first quarter of 2019, primarily due to a $792,000 increase in interest income, partially offset by a $413,000 increase in interest expense.  

Interest income on securities available for sale and other investments increased $53,000, or 7.3%, during the second quarter of 2019 compared to the prior quarter. The increase was primarily due to a $83,000 increase in other investment income from a $12.7 million, or 27.7%, increase in average balance of Fed Funds.

Interest income from the contractual interest rates on loans increased $818,000, or 6.6%, during the second quarter of 2019 compared to the first quarter of 2019, reflecting a 5.0% increase in average balance of loans, including loans held for sale, and a three basis point increase in contractual yield. The amount of discount accretion on SBA loans increased $194,000 during the second quarter due to an increase in SBA loan payoffs. The reported interest income on loans, net of SBA discount accretions and other components, increased $739,000 during the quarter.  

Interest expense for the second quarter of 2019 increased $413,000, or 12.6%, compared to the first quarter of 2019, due to an increase of $39.1 million, or 6.1%, in average balance of interest-bearing

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liabilities and an increase of 10 basis points in average cost of interest-bearing liabilities, primarily due to a continued repricing of interest-bearing deposits following cumulative market rate increases in 2018.  

Net interest margin for the second quarter of 2019 decreased 12 basis points to 4.26% from 4.38% for the first quarter of 2019 because of the increase in the cost of interest-bearing liabilities and the decrease in the reported yield on earning assets.

Net interest income before provision for loan losses for the second quarter of 2019 increased $1.2 million, or 11.9%, to $11.2 million, compared to $10.0 million for the second quarter of 2018, primarily due to a $2.8 million increase in interest income, partially offset by a $1.6 million increase in interest expense.  

Interest income on securities available for sale and other investments increased $393,000, or 100.2% compared to the same period of 2018. The increase was primarily due to a $119,000 increase in interest income on securities available for sale from purchases of higher yielding securities during the second and third quarters of 2018 and a $274,000 increase in other investment income from a $39.4 million increase in average Fed funds and a 40 basis point increase in Fed funds rate.

The increase in interest income on loans was primarily due to a 12.3% increase in average loans, including loans held for sale, and a 42 basis point increase in the yield on average loans to 6.06% for the second quarter of 2019 from 5.64% for the same period of 2018.  

The increase in interest expense in the second quarter of 2019 compared to the second quarter of 2018 was due to a 20.3% increase in average interest-bearing liabilities and a 72 basis point increase in the cost of interest-bearing liabilities.

The increases in the average yield on loans and average cost of deposits were primarily due to cumulative market rate increases by the Federal Reserve during the second half of 2018.

Net interest margin for the second quarter of 2019 decreased 20 basis points to 4.26% from 4.46% for the second quarter of 2018.

The following table shows the asset yields, liability costs, spreads and margins.

	Three Months Ended									Percentage Change
	June 30,			March 31,			June 30,			Q2-19			Q2-19
	2019			2019			2018			vs. Q1-19			vs. Q2-18
Yield on loans		6.06	%		6.09	%		5.64	%		-0.03	%		0.42	%
Yield on interest-earning assets		5.67	%		5.72	%		5.39	%		-0.05	%		0.28	%
Cost of interest-bearing liabilities		2.20	%		2.10	%		1.48	%		0.10	%		0.72	%
Cost of deposits		1.56	%		1.48	%		1.02	%		0.08	%		0.54	%
Cost of funds		1.56	%		1.48	%		1.02	%		0.08	%		0.54	%
Net interest spread		3.47	%		3.62	%		3.91	%		-0.15	%		-0.44	%
Net interest margin		4.26	%		4.38	%		4.46	%		-0.12	%		-0.20	%

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	Six Months Ended						Percentage Change
	June 30,			June 30,			2019 YTD
	2019			2018			vs. 2018 YTD
Yield on loans		6.08	%		5.61	%		0.47	%
Yield on interest-earning assets		5.70	%		5.36	%		0.34	%
Cost of interest-bearing liabilities		2.15	%		1.36	%		0.79	%
Cost of deposits		1.52	%		0.91	%		0.61	%
Cost of funds		1.52	%		0.92	%		0.60	%
Net interest spread		3.55	%		4.00	%		-0.45	%
Net interest margin		4.32	%		4.51	%		-0.19	%

The provision for loan losses for the second quarter of 2019 was $401,000 compared to $33,000 for the second quarter of 2018. A provision for loan losses was not required for the first quarter of 2019. The second quarter provision for loan losses was primarily due to a $33.9 million increase in loan balances during the quarter.

Noninterest income for the second quarter of 2019 was $2.6 million, a decrease of $886,000, or 25.1%, from $3.5 million for the first quarter of 2019, primarily due to the gain on company owned life insurance of $1.2 million received in the first quarter and a decrease of $156,000 in loan servicing fees, partially offset by an increase of $511,000 in gain on sale of SBA loans.

Loan servicing fees decreased $156,000 to $227,000 for the second quarter of 2019 from $383,000 for the prior quarter. The decrease in loan servicing fees was primarily due to an increase in the amortization of SBA servicing assets from the increase in SBA loan payoffs.

Gain on sale of SBA loans increased $511,000 to $1.6 million for the second quarter of 2019 from $1.1 million for the first quarter of 2019.  We sold $21.2 million in SBA loans with an average premium of 8.99% in the second quarter of 2019, compared to the sale of $17.7 million in SBA loans with an average premium of 8.19% in the first quarter of 2019.  

Noninterest income for the second quarter of 2019 decreased $136,000 compared to $2.8 million for the second quarter of 2018, primarily due to a decrease of $145,000 in loan servicing fees, a decrease of $140,000 in gain on sale of SBA loans, partially offset by an increase of $101,000 in service charges on deposits. Gain on sale of SBA loans for the second quarter of 2018 was $1.7 million from the sale of $24.8 million in SBA loans with an average premium of 8.60%. An $85,000 of other operation fee income was reclassified to service charges on deposits for the second quarter of 2019.

Noninterest expense for the second quarter of 2019 was $8.4 million, an increase of $285,000, or 3.5%, compared to $8.1 million for the first quarter of 2019.  The increase was primarily due to an increase of $176,000 in salary and employee benefits and an increase of $55,000 in occupancy and equipment. The increases in salary and employee benefits were primarily driven by supporting continued growth of the company, and the increase in occupancy and equipment was primarily attributable to a branch opening in Carrollton, Texas in the second quarter of 2019.

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Noninterest expense for the second quarter of 2019 increased $880,000, or 11.8%, to $8.4 million, compared to $7.5 million for the second quarter of 2018.  The increase was primarily due to an increase of $729,000 in salary and employee benefits from an increase in employee headcount to 168 at June 30, 2019 from 138 at June 30, 2018.Occupancy and equipmentexpense increased $68,000primarily attributable tothe new loan production offices and a new branch opening in 2019.Professional feesincreased $81,000primarilydue to an increase in financial reporting and auditing costs as additional regulatory reporting requirements becameapplicable in 2019.

Income tax provision for the second quarter of 2019 was $1.2 million, compared to $1.5 million for the first quarter of 2019 and the second quarter of 2018.  The effective tax rates for the second quarter of 2019 and the first quarter of 2019 were 24.3%, compared to 27.9% for the second quarter of 2018. The decrease in the effective tax rate in the second quarter of 2019 compared to the second quarter of 2018 was primarily due to additional tax benefits from an increase in non-qualified stock option exercises during the second quarter of 2019.

Balance Sheet

Total assets at June 30, 2019 were $1.13 billion, an increase of $50.3 million, or 4.7%, compared to $1.08 billion at March 31, 2019, and an increase of $148.1 million, or 15.1%, compared to $979.4 million at June 30, 2018. Gross loans, net of unearned income, were $947.0 million at June 30, 2019, an increase of $33.9 million, or 3.7%, from $913.1 million at March 31, 2019, and an increase of $121.0 million, or 14.6%, from $826.0 million at June 30, 2018.

New loan originations for the second quarter of 2019 totaled $93.8 million, including SBA loan originations of $27.9 million, compared to $92.8 million, including SBA loan originations of $24.3 million, for the first quarter of 2019.  New loan originations for the second quarter of 2018 were $92.0 million, including SBA loan originations of $29.3 million.  Loan payoffs for the second quarter of 2019 were $33.5 million, compared to $22.5 million for the first quarter of 2019, and $30.1 million for the second quarter of 2018.

Total deposits were $974.7 million at June 30, 2019, an increase of $45.3 million, or 4.9%, from $929.4 million at March 31, 2019, and an increase of $151.3 million, or 18.4%, from $823.4 million at June 30, 2018.  Noninterest bearing deposits were $275.0 million at June 30, 2019, compared to $272.5 million at March 31, 2019, and $270.1 million at June 30, 2018.  

Noninterest bearing deposits accounted for 28.2% of total deposits at June 30, 2019, compared to 29.3% at March 31, 2019 and 32.8% at June 30, 2018.  

	As of
	June 30,			March 31,			June 30,
	2019			2019			2018
Noninterest bearing deposits		28.2	%		29.3	%		32.8	%
Interest bearing demand deposits		28.7	%		27.7	%		29.7	%
Savings		0.4	%		0.4	%		0.4	%
Time deposits over $250,000		21.7	%		20.3	%		17.2	%
Other time deposits		21.0	%		22.3	%		19.9	%
Total deposits		100.0	%		100.0	%		100.0	%

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The Company had no borrowings from the Federal Home Loan Bank (“FHLB”) at June 30, 2019 and March 31, 2019,compared to the advances from the FHLB of $25 million at June 30, 2018. The payoff of advances from the FHLB were funded by the increase in total deposits.

The adoption of the new lease accounting standard ASU 2016-02, Leases (Topic 842) effective January 1, 2019 resulted in the recognition of $7.7 million and $9.6 million in right-of-use assets and lease liabilities, respectively, on balance sheet. With the new branch opening, the Company had right-of-use assets and lease liabilities of $9.0 million and $10.7 million, respectively, at June 30, 2019.The Company’s consolidated regulatory capital ratios exceeded regulatory guidelines and the Bank’s capital ratios exceeded the regulatory guidelines for a well-capitalized financial institution under the Basel III regulatory requirements at June 30, 2019, as summarized in the following table.

										Regulatory
							Well-capitalized			Capital Ratio
							Financial			Requirements (1),
							Institution			Including
							Basel III			Fully Phased-in
							Regulatory			Capital Conservation
Capital Ratios	OP Bancorp			Open Bank			Guidelines			Buffer
Total risk-based		15.45	%		15.37	%		10.00	%		10.50	%
Tier 1 risk-based		14.42	%		14.35	%		8.00	%		8.50	%
Common equity tier 1 Risk-Based		14.42	%		14.35	%		6.50	%		7.00	%
Leverage		12.24	%		12.18	%		5.00	%		4.00	%
(1) Fully phased in Basel III requirement for both OP Bancorp and Open Bank. Includes a 2.5% capital conservation buffer, except the leverage ratio.

Since the announcement of a share repurchase program to buy back up to 400,000 shares of its common stock on January 25, 2019, the Company has repurchased 333,270 shares of its common stock at an average repurchase price of $9.11 through July 25, 2019.

Asset Quality

Nonperforming loans were $1.56 million at June 30, 2019, a decrease of $24,000 from $1.58 million at March 31, 2019 and an increase of $566,000 from $990,000 at June 30, 2018.

The company had no other real estate owned (“OREO”) at June 30, 2019 and 2018 but had $1.1 million in OREO at March 31, 2019. The Company sold OREO of $1.1 million during the second quarter and no loss was recorded on the sale.

Nonperforming assets were $1.6 million, or 0.14% of total assets, at June 30, 2019, $2.7 million, or 0.25% of total assets, at March 31, 2019 and $990,000, or 0.10% of total assets, at June 30, 2018.  

Nonperforming loans to gross loans were 0.16% at June 30, 2019, compared to 0.17% at March 31, 2019 and 0.12% at June 30, 2018.  Total classified loans were $4.2 million, or 0.44% of gross loans, at June 30, 2019, compared to $4.2 million, or 0.46% of gross loans, at March 31, 2019, and $3.7 million, or 0.45% of gross loans, at June 30, 2018.  

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The following tables shows the trend of classified loans by loan type.

	6/30/2019		3/31/2019		12/31/2018		9/30/2018		6/30/2018
Classified loans by loan type
Commercial real estate	$	—	$	—	$	—	$	—	$	—
SBA loans—real estate		2,264		2,281		2,000		1,859		1,892
SBA loans—non-real estate		41		49		57		354		141
Commercial and industrial		1,892		1,906		1,516		1,587		1,688
Home mortgage		—		—		—		—		—
Consumer		—		—		—		—		—
Total classified loans	$	4,197	$	4,236	$	3,573	$	3,800	$	3,721
SBA guarantee balance retained
SBA loans—real estate		524		534		544		553		572
SBA loans—non-real estate		41		49		57		282		84
Total SBA unsold guarantee portion	$	565	$	583	$	601	$	835	$	656
Total classified loans, net of SBA guarantee balance retained	$	3,632	$	3,653	$	2,972	$	2,965	$	3,065

The allowance for loan losses was $9.5 million at June 30, 2019, compared to $9.6 at March 31, 2019, and $9.7 million at June 30, 2018.  The allowance for loan losses was 1.01% of gross loans at June 30, 2019, 1.05% at March 31, 2019 and 1.18% at June 30, 2018.  The allowance for loan losses was 612% of nonperforming assets at June 30, 2019, 353% at March 31, 2019 and 982% at June 30, 2018.

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, California, and Carrollton, Texas 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 with nine full branch offices in Downtown Los Angeles, Los Angeles Fashion District, Los Angeles Koreatown, Gardena, Buena Park, and Santa Clara, California and Carrollton, Texas.  The Bank also has four loan production offices in Atlanta, Georgia, Aurora, Colorado, and Lynnwood and Seattle, 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; www.myopenbank.com  Member FDIC, Equal Housing Lender.

Cautionary Note Regarding Forward-Looking Statements

Certain matters set forth herein (including any exhibits hereto) 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. Forward-looking statements may include, but are not limited to, 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. These forward-

9

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: business and economic conditions, particularly those affecting the financial services industry and our primary market areas; our ability to successfully manage our credit risk and the sufficiency of our allowance for loan loss;  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 and the success of construction projects that we finance; our ability to effectively execute our strategic plan and manage our growth;  interest rate fluctuations, which could have an adverse effect on our profitability; liquidity issues, including fluctuations in the fair value and liquidity of the securities we hold for sale;  external economic and/or market factors, such as changes in monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve, 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 financial institutions, credit unions, and non-bank financial services companies, many of which are subject to different regulations than we are;  challenges arising from unsuccessful attempts to expand into new geographic markets, products, or services;  restraints on the ability of the Bank to pay dividends to the holding company;  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; inaccuracies in our assumptions about future events, which could result in material differences between our financial projections and actual financial performance; 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; 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; the affect if any of the recent federal government shutdown on our SBA loan program; 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, 2018 and in our other subsequent filings with the Securities and Exchange Commission. If any of these risks or uncertainties materializes or if any of the assumptions underlying such forward-looking statements proves to be incorrect, our results could differ materially from those expressed in, implied or projected by such forward-looking statements. We assume no obligation to update such forward-looking statements.  Any forward-looking statements presented herein are made only as of the date of this press release, and we do not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise, except as required by law.

10

Contact

Investor Relations

OP Bancorp

Christine Oh

EVP & CFO

213.892.1192

Christine.oh@myopenbank.com

11

Consolidated Balance Sheet (unaudited)
(Dollars in thousands)
	6/30/2019			3/31/2019			% change			6/30/2018			% change
Assets
Cash and due from banks	$	83,111		$	65,796			26.3	%	$	61,252			35.7	%
Securities available for sale, at fair value		51,829			54,116			-4.2	%		45,006			15.2	%
Other investments		8,134			7,306			11.3	%		7,226			12.6	%
Loans held for sale		1,245			246			406.1	%		8,718			-85.7	%
Real Estate Loans		583,634			545,481			7.0	%		465,125			25.5	%
SBA Loans		130,957			130,478			0.4	%		125,378			4.4	%
C & I Loans		105,133			106,796			-1.6	%		117,353			-10.4	%
Home Mortgage Loans		123,951			127,851			-3.1	%		114,710			8.1	%
Consumer & Other Loans		3,331			2,458			35.5	%		3,474			-4.1	%
Gross loans, net of unearned income		947,006			913,064			3.7	%		826,040			14.6	%
Allowance for loan losses		(9,525	)		(9,619	)		-1.0	%		(9,723	)		-2.0	%
Net loans receivable		937,481			903,445			3.8	%		816,317			14.8	%
Premises and equipment, net		5,341			5,083			5.1	%		4,818			10.9	%
Accrued interest receivable		3,301			3,368			-2.0	%		2,598			27.1	%
Servicing assets		6,996			7,046			-0.7	%		6,994			0.0	%
Company owned life insurance		10,482			10,414			0.7	%		11,243			-6.8	%
Deferred tax assets		2,858			3,665			-22.0	%		4,239			-32.6	%
OREO		-			1,146			-100.0	%		-			0.0	%
Operating right-of-use assets (1)		8,959			7,738			15.8	%		-			100.0	%
Other assets		7,819			7,866			-0.6	%		11,030			-29.1	%
Total assets	$	1,127,556		$	1,077,235			4.7	%	$	979,441			15.1	%
Liabilities and Shareholders' Equity
Noninterest bearing deposits	$	274,976		$	272,482			0.9	%	$	270,144			1.8	%
Savings		3,527			3,527			0.0	%		3,097			13.9	%
Money market and others		279,748			257,694			8.6	%		244,620			14.4	%
Time deposits over $250,000		211,305			188,162			12.3	%		141,823			49.0	%
Other time deposits		205,116			207,537			-1.2	%		163,689			25.3	%
Total deposits		974,672			929,402			4.9	%		823,373			18.4	%
Other borrowings		-			-			0.0	%		25,000			-100.0	%
Accrued interest payable		2,287			2,178			5.0	%		873			162.0	%
Operating lease liabilities (1)		10,737			9,566			12.2	%		-			100.0	%
Other liabilities		4,378			3,713			17.9	%		8,802			-50.3	%
Total liabilities		992,074			944,859			5.0	%		858,048			15.6	%
Common stock		88,455			89,120			-0.7	%		90,894			-2.7	%
Additional paid-in capital		6,965			6,626			5.1	%		5,720			21.8	%
Retained earnings		39,878			36,824			8.3	%		25,631			55.6	%
Accumulated other comprehensive income(loss)		184			(194	)		-194.8	%		(852	)		-121.6	%
Total shareholders' equity		135,482			132,376			2.3	%		121,393			11.6	%
Total Liabilities and Shareholders' Equity	$	1,127,556		$	1,077,235			4.7	%	$	979,441			15.1	%
(1) The adoption of ASU 2016-02, Leases (Topic 842) in the first quarter of 2019 resulted in the recognition of right-of-use assets and lease liabilities on balance sheet.

12

Consolidated Statements of Income (unaudited)
(Dollars in thousands, except per share data)	Three Months Ended
	6/30/2019		3/31/2019		% change			6/30/2018		% change
Interest income
Interest and fees on loans	$	14,093	$	13,354		5.5	%	$	11,670		20.8	%
Interest on securities available for sale		327		360		-9.2	%		208		57.2	%
Other interest income		458		372		23.1	%		184		148.9	%
Total interest income		14,878		14,086		5.6	%		12,062		23.3	%
Interest expense
Interest on deposits		3,701		3,288		12.6	%		2,060		79.7	%
Interest on borrowed funds		-		-		0.0	%		15		-100.0	%
Total interest expense		3,701		3,288		12.6	%		2,075		78.4	%
Net interest income		11,177		10,798		3.5	%		9,987		11.9	%
Provision for loan losses		401		-		100.0	%		33		1115.2	%
Net interest income after provision for loan losses		10,776		10,798		-0.2	%		9,954		8.3	%
Noninterest income
Service charges on deposits		499		448		11.4	%		398		25.4	%
Loan servicing fees, net of amortization		227		383		-40.7	%		372		-39.0	%
Gain on sale of loans		1,588		1,077		47.4	%		1,728		-8.1	%
Other income		333		1,625		-79.5	%		285		16.8	%
Total noninterest income		2,647		3,533		-25.1	%		2,783		-4.9	%
Noninterest expense
Salaries and employee benefits		5,344		5,168		3.4	%		4,615		15.8	%
Occupancy and equipment		1,132		1,077		5.1	%		1,064		6.4	%
Data processing and communication		367		359		2.2	%		297		23.6	%
Professional fees		247		203		21.7	%		166		48.8	%
FDIC insurance and regulatory assessments		105		104		1.0	%		104		1.0	%
Promotion and advertising		183		178		2.8	%		231		-20.8	%
Directors’ fees		223		229		-2.6	%		209		6.7	%
Foundation donation and other contributions		379		388		-2.3	%		386		-1.8	%
Other expenses		378		367		3.0	%		406		-6.9	%
Total noninterest expense		8,358		8,073		3.5	%		7,478		11.8	%
Income before income taxes		5,065		6,258		-19.1	%		5,259		-3.7	%
Provision for income taxes		1,229		1,518		-19.0	%		1,468		-16.3	%
Net income	$	3,836	$	4,740		-19.1	%	$	3,791		1.2	%
Book value per share	$	8.62	$	8.42		2.4	%	$	7.77		10.9	%
Basic EPS	$	0.24	$	0.29		-17.2	%	$	0.24		0.0	%
Diluted EPS	$	0.23	$	0.29		-20.7	%	$	0.23		0.0	%
Shares of common stock outstanding		15,723,007		15,719,583		0.0	%		15,629,215		0.6	%
Weighted Average Shares:
- Basic		15,685,478		15,817,060		-0.8	%		15,577,775		0.7	%
- Diluted		15,951,598		16,112,725		-1.0	%		16,110,460		-1.0	%

13

Key Ratios
(Dollars in thousands, except ratios)	Three Months Ended
	6/30/2019			3/31/2019			% change			6/30/2018			% change
Return on average assets (ROA)*		1.39	%		1.83	%		-0.44	%		1.61	%		-0.22	%
Return on average equity (ROE) *		11.50	%		14.46	%		-2.96	%		12.70	%		-1.20	%
Net interest margin *		4.26	%		4.38	%		-0.12	%		4.46	%		-0.20	%
Efficiency ratio		60.45	%		56.33	%		4.12	%		58.56	%		1.89	%
Total Risk Based Capital Ratio		15.45	%		15.76	%		-0.31	%		16.09	%		-0.64	%
Tier 1 Capital Ratio		14.42	%		14.68	%		-0.26	%		14.90	%		-0.48	%
Common Equity Tier 1 Ratio		14.42	%		14.68	%		-0.26	%		14.90	%		-0.48	%
Tier 1 Leverage Ratio		12.24	%		12.73	%		-0.49	%		12.91	%		-0.67	%
*  Annualized

14

Consolidated Statements of Income (unaudited)
(Dollars in thousands, except per share data)	Six Months Ended
	6/30/2019		6/30/2018		% change
Interest income
Interest and fees on loans	$	27,447	$	22,517		21.9	%
Interest on securities available for sale		687		396		73.5	%
Other interest income		831		329		152.6	%
Total interest income		28,965		23,242		24.6	%
Interest expense
Interest on deposits		6,989		3,593		94.5	%
Interest on borrowed funds		-		102		-100.0	%
Total interest expense		6,989		3,695		89.1	%
Net interest income		21,976		19,547		12.4	%
Provision for loan losses		401		609		-34.2	%
Net interest income after provision for loan losses		21,575		18,938		13.9	%
Noninterest income
Service charges on deposits		1,026		935		9.7	%
Loan servicing fees, net of amortization		610		696		-12.4	%
Gain on sale of loans		2,665		2,717		-1.9	%
Other income		1,878		648		189.8	%
Total noninterest income		6,179		4,996		23.7	%
Noninterest expense
Salaries and employee benefits		10,513		8,826		19.1	%
Occupancy and equipment		2,209		2,089		5.7	%
Data processing and communication		725		627		15.6	%
Professional fees		451		318		41.8	%
FDIC insurance and regulatory assessments		210		200		5.0	%
Promotion and advertising		360		377		-4.5	%
Directors’ fees		452		418		8.1	%
Foundation donation and other contributions		767		715		7.3	%
Other expenses		744		720		3.3	%
Total noninterest expense		16,431		14,290		15.0	%
Income before income taxes		11,323		9,644		17.4	%
Provision for income taxes		2,747		2,637		4.2	%
Net income (loss)	$	8,576	$	7,007		22.4	%
Book value per share	$	8.62	$	7.77		11.0	%
Basic EPS	$	0.53	$	0.47		12.8	%
Diluted EPS	$	0.52	$	0.45		15.6	%
Shares of common stock outstanding		15,723,007		15,629,215		0.6	%
Weighted Average Shares:
- Basic		15,750,905		14,441,241		9.1	%
- Diluted		16,006,499		14,951,581		7.1	%

15

Key Ratios
(Dollars in thousands, except ratios)	Six Months Ended
	6/30/2019			6/30/2018			% change
Return on average assets (ROA)*		1.60	%		1.52	%		0.08	%
Return on average equity (ROE) *		12.97	%		13.11	%		-0.14	%
Net interest margin *		4.32	%		4.51	%		-0.19	%
Efficiency ratio		58.36	%		58.22	%		0.14	%
Total Risk Based Capital Ratio		15.45	%		16.09	%		-0.64	%
Tier 1 Capital Ratio		14.42	%		14.90	%		-0.48	%
Common Equity Tier 1 Ratio		14.42	%		14.90	%		-0.48	%
Tier 1 Leverage Ratio		12.24	%		12.91	%		-0.67	%
*  Annualized

Asset Quality
(Dollars in thousands, except ratios)	Three Months Ended
	6/30/2019			3/31/2019			12/31/2018			9/30/2018			6/30/2018
Nonaccrual Loans	$	1,218		$	1,239		$	1,571		$	888		$	642
Loans 90 days or more past due, accruing		-			-			-			-			-
Accruing restructured loans		338			341			343			345			348
Nonperforming loans		1,556			1,580			1,914			1,233			990
Other real estate loans (OREO)		-			1,146			-			-			-
Nonperforming assets		1,556			2,726			1,914			1,233			990
Classified loans		4,197			4,236			3,573			3,800			3,721
Nonperforming assets/total assets		0.14	%		0.25	%		0.18	%		0.12	%		0.10	%
Nonperforming assets/gross loans plus OREO		0.16	%		0.30	%		0.22	%		0.15	%		0.12	%
Nonperforming loans/gross loans		0.16	%		0.17	%		0.22	%		0.15	%		0.12	%
Allowance for loan losses/nonperforming loans		612	%		609	%		503	%		775	%		982	%
Allowance for loan losses/nonperforming assets		612	%		353	%		503	%		775	%		982	%
Allowance for loan losses/gross loans		1.01	%		1.05	%		1.10	%		1.12	%		1.18	%
Classified loans/gross loans		0.44	%		0.46	%		0.41	%		0.45	%		0.45	%
Net charge-offs	$	495		$	17		$	135		$	611		$	26
Net charge-offs to average gross loans *		0.21	%		0.01	%		0.06	%		0.29	%		0.01	%
*  Annualized
Accruing delinquent loans 30-89 days past due	6/30/2019			3/31/2019			12/31/2018			9/30/2018			6/30/2018
30-59 days	$	1,065		$	2,073		$	449		$	1,007		$	577
60-89 days		2,207			-			-			-			57
Total		3,272			2,073			449			1,007			634

16

Average Balance Sheet, Interest and Yield/Rate Analysis
(Dollars in thousands)	Three Months Ended
	June 30, 2019							March 31, 2019							June 30, 2018
	Average Balance		Interest and Fees		Yield/ Rate			Average Balance		Interest and Fees		Yield/ Rate			Average Balance		Interest and Fees		Yield/ Rate
Earning assets:
Federal funds sold and other investments	$	66,277	$	458		2.74	%	$	52,963	$	372		2.81	%	$	26,857	$	184		2.72	%
Securities available for sale		53,329		327		2.45			54,771		360		2.63			40,372		208		2.06
Total investments		119,606		785		2.61			107,734		732		2.72			67,229		392		2.33
Real estate		562,256		7,837		5.59			519,037		7,149		5.59			464,899		6,008		5.18
SBA		137,133		3,063		8.96			131,272		2,933		9.06			143,604		2,714		7.58
C & I		104,273		1,558		5.99			106,680		1,594		6.06			107,546		1,473		5.49
Home Mortgage		125,577		1,588		5.06			128,507		1,636		5.09			110,476		1,425		5.16
Consumer		2,814		47		6.70			2,532		42		6.68			3,608		50		5.56
Loans (1)		932,053		14,093		6.06			888,028		13,354		6.09			830,133		11,670		5.64
Total earning assets		1,051,659		14,878		5.67			995,762		14,086		5.72			897,362		12,062		5.39
Noninterest-earning assets		50,387							42,476							46,970
Total assets	$	1,102,046						$	1,038,238						$	944,332
Interest-bearing liabilities:
NOW and savings deposits	$	4,725		3		0.25	%	$	5,176		3		0.25	%	$	6,615		4		0.24	%
Money market deposits		281,239		1,335		1.90			251,583		1,121		1.81			253,162		804		1.27
Time deposits		389,294		2,363		2.43			379,430		2,164		2.31			298,535		1,252		1.68
Total interest-bearing deposits		675,258		3,701		2.20			636,189		3,288		2.10			558,312		2,060		1.48
Borrowings		2		-		2.76			-		-		-			3,132		15		1.92
Total interest-bearing liabilities		675,260		3,701		2.20			636,189		3,288		2.10			561,444		2,075		1.48
Noninterest-bearing liabilities:
Noninterest-bearing deposits		276,569							262,524							254,700
Other noninterest-bearing liabilities		16,778							8,444							8,814
Total noninterest-bearing liabilities		293,347							270,968							263,514
Shareholders’ equity		133,439							131,081							119,374
Total liabilities and shareholders’ equity	$	1,102,046						$	1,038,238						$	899,412
Net interest income / interest rate spreads			$	11,177		3.47	%			$	10,798		3.62	%			$	9,987		3.91	%
Net interest margin						4.26	%						4.38	%						4.46	%
Cost of deposits & cost of funds:
Total deposits / cost of deposits	$	951,827	$	3,701		1.56	%	$	898,713	$	3,288		1.48	%	$	813,012	$	2,060		1.02	%
Total funding liabilities / cost of funds	$	951,829	$	3,701		1.56	%	$	898,713	$	3,288		1.48	%	$	816,144	$	2,075		1.02	%
(1) Includes loans held for sale.

17

Average Balance Sheet, Interest and Yield/Rate Analysis
(Dollars in thousands)	Six Months Ended
	June 30, 2019							June 30, 2018
	Average Balance		Interest and Fees		Yield/ Rate			Average Balance		Interest and Fees		Yield/ Rate
Earning assets:
Federal funds sold and other investments	$	59,657	$	831		2.77	%	$	24,386	$	327		2.67	%
Securities available for sale		54,046		687		2.54			39,297		397		2.02
Total investments		113,703		1,518		2.66			63,683		724		2.26
Real estate		540,766		14,986		5.59			454,619		11,543		5.12
SBA		134,219		5,996		9.01			139,293		5,264		7.62
C & I		105,469		3,152		6.03			103,887		2,839		5.51
Home Mortgage		127,034		3,224		5.08			107,382		2,770		5.16
Consumer		2,674		89		6.71			3,619		101		5.63
Loans (1)		910,162		27,447		6.08			808,800		22,517		5.61
Total earning assets		1,023,865		28,965		5.70			872,483		23,241		5.36
Noninterest-earning assets		46,453							49,512
Total assets	$	1,070,318						$	921,995
Interest-bearing liabilities:
NOW and savings deposits	$	4,949		6		0.25	%	$	6,511		7		0.22	%
Money market deposits		266,493		2,456		1.86			257,015		1,512		1.19
Time deposits		384,389		4,527		2.38			271,218		2,074		1.54
Total interest-bearing deposits		655,831		6,989		2.15			534,744		3,593		1.35
Borrowings		1		-		2.76			13,398		102		1.54
Total interest-bearing liabilities		655,832		6,989		2.15			548,142		3,695		1.36
Noninterest-bearing liabilities:
Noninterest-bearing deposits		269,585							257,445
Other noninterest-bearing liabilities		12,634							9,493
Total noninterest-bearing liabilities		282,219							266,938
Shareholders’ equity		132,267							106,915
Total liabilities and shareholders’ equity	$	1,070,318						$	921,995
Net interest income / interest rate spreads			$	21,976		3.55	%			$	19,546		4.00	%
Net interest margin						4.32	%						4.51	%
Cost of deposits & cost of funds:
Total deposits / cost of deposits	$	925,416	$	6,989		1.52	%	$	792,189	$	3,593		0.91	%
Total funding liabilities / cost of funds	$	925,417	$	6,989		1.52	%	$	805,587	$	3,695		0.92	%
(1) Includes loans held for sale.

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EX-99.2

Exhibit 99.2

OP Bancorp Declares Quarterly Cash Dividend of $0.05 per Share

LOS ANGELES, July 25, 2019 — OP Bancorp (the “Company”) (NASDAQ: OPBK), the holding company of Open Bank (the “Bank”), announced today that its Board of Directors declared a quarterly cash dividend of $0.05 per share of its common stock. The dividend is payable on or about August 23, 2019 to all shareholders of record as of the close of business on August 9, 2019.

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, California and Carrollton, Texas 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 with nine full branch offices in Downtown Los Angeles, Los Angeles Fashion District, Los Angeles Koreatown, Gardena, Buena Park, and Santa Clara, California, and Carrollton, Texas.  The Bank also has four loan production offices in Atlanta, Georgia, Aurora, Colorado, and Lynnwood and Seattle, 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; www.myopenbank.com  Member FDIC, Equal Housing Lender.

Forward-Looking Statements

Certain matters set forth herein (including any exhibits hereto) 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. Forward-looking statements may include, but are not limited to, 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. 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: business and economic conditions, particularly those affecting the financial services industry and our primary market areas; our ability to successfully manage our credit risk and the sufficiency of our allowance for loan loss;  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

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commercial borrowers and the success of construction projects that we finance; our ability to effectively execute our strategic plan and manage our growth;  interest rate fluctuations, which could have an adverse effect on our profitability; liquidity issues, including fluctuations in the fair value and liquidity of the securities we hold for sale;  external economic and/or market factors, such as changes in monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve, 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 financial institutions, credit unions, and non-bank financial services companies, many of which are subject to different regulations than we are;  challenges arising from unsuccessful attempts to expand into new geographic markets, products, or services;  restraints on the ability of the Bank to pay dividends to the holding company;  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; inaccuracies in our assumptions about future events, which could result in material differences between our financial projections and actual financial performance; 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; 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; the affect if any of the recent federal government shutdown on our SBA loan program; 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, 2018 and in our other subsequent filings with the Securities and Exchange Commission. If any of these risks or uncertainties materializes or if any of the assumptions underlying such forward-looking statements proves to be incorrect, our results could differ materially from those expressed in, implied or projected by such forward-looking statements. We assume no obligation to update such forward-looking statements.  Any forward-looking statements presented herein are made only as of the date of this press release, and we do not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise, except as required by law.

Contact

Investor Relations

OP Bancorp

Christine Oh

EVP & CFO

213.892.1192

Christine.oh@myopenbank.com

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