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): April 25, 2024

____________________________________

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

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:

☐	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 April 25, 2024, OP Bancorp, (the “Company”), the holding company of Open Bank, issued a press release announcing preliminary unaudited results for the first quarter ended March 31, 2024. A copy of the press release is attached as Exhibit 99.1 to this Current Report and is incorporated herein by reference. Also attached as Exhibit 99.3 is a slide presentation for the results for the first quarter.

The information in this report set forth under this Item 2.02 shall not be treated as “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 as amended (the “Exchange Act”), nor shall it be deemed incorporated by reference into any registration statement or other filing pursuant to the Exchange Act or the Securities Act of 1934 as amended, except as expressly stated by specific reference in such filing.

Item 9.01.    Financial Statements and Exhibits

(d)    Exhibits.

Exhibit Number	Exhibit Description
99.1	Press Release of OP Bancorp, issued April 25, 2024, announcing financial results for the first quarter of 2024
99.2	Press Release of OP Bancorp, issued April 25, 2024, announcing the declaration of a quarterly cash dividend
99.3	Earnings Presentation, 2024 First Quarter
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

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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
Date: April 25, 2024	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 NET INCOME FOR 2024 FIRST QUARTER

OF $5.2 MILLION AND DILUTED EARNINGS PER SHARE OF $0.34

2024 First Quarter Highlights compared with 2023 Fourth Quarter:

•Financial Results:

◦Net income of $5.23 million, compared to $5.17 million

◦Diluted earnings per share of $0.34, compared to $0.34

◦Net interest income of $16.0 million, compared to $16.2 million

◦Net interest margin of 3.06%, compared to 3.12%

◦Provision for credit losses of $0.1 million, compared to $0.6 million

◦Total assets of $2.23 billion, compared to $2.15 billion

◦Gross loans of $1.80 billion, compared to $1.77 billion

◦Total deposits of $1.90 billion, compared to $1.81 billion

•Credit Quality:

◦Allowance for credit losses to gross loans of 1.23%, compared to 1.25%

◦Net charge-offs(1) to average gross loans(2) of 0.01%, compared to 0.04%

◦Past due 30-89 days to gross loans of 0.22%, compared to 0.54%

◦Nonperforming loans to gross loans of 0.24%, compared to 0.34%

◦Criticized loans(3) to gross loans of 0.64%, compared to 0.76%

•Capital Levels:

◦Remained well-capitalized with a Common Equity Tier 1 (“CET1”) ratio of 12.34%

◦Book value per common share increased to $13.00, compared to $12.84

◦Repurchased 49,697 shares of common stock at an average price of $10.02 per share

◦Paid quarterly cash dividend of $0.12 per share for the periods

___________________________________________________________

(1)    Annualized.

(2)    Includes loans held for sale.

(3)    Includes special mention, substandard, doubtful, and loss categories.

LOS ANGELES, April 25, 2024 — OP Bancorp (the “Company”) (NASDAQ: OPBK), the holding company of Open Bank (the “Bank”), today reported its financial results for the first quarter of 2024. Net income for the first quarter of 2024 was $5.23 million, or $0.34 per diluted common share, compared with $5.17 million, or $0.34 per diluted common share, for the fourth quarter of 2023, and $7.5 million, or $0.48 per diluted common share, for the first quarter of 2023.

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Min Kim, President and Chief Executive Officer:

“Despite the prolonged stress from the high interest rate environment, we were able to grow loans and deposits in the first quarter while controlling impacts to net interest margin at a manageable level. Our credit quality improved noticeably across all metrics even in the face of significant uncertainties that affect our borrowers. I’d like to thank our loyal customers and our dedicated employees for their continuing support of Open Bank, and we look forward to continuing to grow prudently while maintaining an optimum risk profile,” said Min Kim, President and Chief Executive.

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SELECTED FINANCIAL HIGHLIGHTS

($ in thousands, except per share data)	As of and For the Three Months Ended									% Change 1Q2024 vs.
	1Q2024			4Q2023			1Q2023			4Q2023		1Q2023
Selected Income Statement Data:
Net interest income	$	15,979		$	16,230		$	17,892		(1.5)	%	(10.7)	%
Provision for (reversal of) credit losses	145			630			(338)			(77.0)		(142.9)
Noninterest income	3,586			3,680			4,295			(2.6)		(16.5)
Noninterest expense	12,157			11,983			11,908			1.5		2.1
Income tax expense	2,037			2,125			3,083			(4.1)		(33.9)
Net income	5,226			5,172			7,534			1.0		(30.6)
Diluted earnings per share	0.34			0.34			0.48			—		(29.2)
Selected Balance Sheet Data:
Gross loans	$	1,804,987		$	1,765,845		$	1,692,485		2.2	%	6.6	%
Total deposits	1,895,411			1,807,558			1,904,818			4.9		(0.5)
Total assets	2,234,520			2,147,730			2,170,594			4.0		2.9
Average loans(1)	1,808,932			1,787,540			1,725,392			1.2		4.8
Average deposits	1,836,331			1,813,411			1,867,684			1.3		(1.7)
Credit Quality:
Nonperforming loans	$	4,343		$	6,082		$	2,504		(28.6)	%	73.4	%
Nonperforming loans to gross loans	0.24		%	0.34		%	0.15		%	(0.10)		0.09
Criticized loans(2) to gross loans	0.64			0.76			0.34			(0.12)		0.30
Net charge-offs(3) to average gross loans(1)	0.01			0.04			0.02			(0.03)		(0.01)
Allowance for credit losses to gross loans	1.23			1.25			1.23			(0.02)		—
Allowance for credit losses to nonperforming loans	510			362			831			148.00		(321.00)
Financial Ratios:
Return on average assets(3)	0.96		%	0.96		%	1.43		%	—	%	(0.47)	%
Return on average equity(3)	10.83			11.18			16.82			(0.35)		(5.99)
Net interest margin(3)	3.06			3.12			3.57			(0.06)		(0.51)
Efficiency ratio(4)	62.14			60.19			53.67			1.95		8.47
Common equity tier 1 capital ratio	12.34			12.52			12.06			(0.18)		0.28
Leverage ratio	9.65			9.57			9.43			0.08		0.22
Book value per common share	$	13.00		$	12.84		$	12.02		1.2		8.2

(1)Includes loans held for sale.

(2)Includes special mention, substandard, doubtful, and loss categories.

(3)Annualized.

(4)Represents noninterest expense divided by the sum of net interest income and noninterest income.

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INCOME STATEMENT HIGHLIGHTS

Net Interest Income and Net Interest Margin

($ in thousands)	For the Three Months Ended						% Change 1Q2024 vs.
	1Q2024		4Q2023		1Q2023		4Q2023		1Q2023
Interest Income
Interest income	$	32,913	$	31,783	$	28,594	3.6	%	15.1	%
Interest expense	16,934		15,553		10,702		8.9		58.2
Net interest income	$	15,979	$	16,230	$	17,892	(1.5)	%	(10.7)	%

($ in thousands)	For the Three Months Ended
	1Q2024						4Q2023						1Q2023
	Average Balance		Interest and Fees		Yield/Rate(1)		Average Balance		Interest and Fees		Yield/Rate(1)		Average Balance		Interest and Fees		Yield/Rate(1)
Interest-earning Assets:
Loans	$	1,808,932	$	30,142	6.69	%	$	1,787,540	$	28,914	6.43	%	$	1,725,392	$	26,011	6.10	%
Total interest-earning assets	2,089,627		32,913		6.32		2,071,613		31,783		6.10		2,022,146		28,594		5.71
Interest-bearing Liabilities:
Interest-bearing deposits	1,321,828		15,675		4.77		1,243,446		14,127		4.51		1,196,194		10,382		3.52
Total interest-bearing liabilities	1,430,509		16,934		4.76		1,362,210		15,553		4.53		1,222,362		10,702		3.55
Ratios:
Net interest income / interest rate spreads			15,979		1.56				16,230		1.57				17,892		2.16
Net interest margin					3.06						3.12						3.57
Total deposits / cost of deposits	1,836,331		15,675		3.43		1,813,411		14,127		3.09		1,867,684		10,382		2.25
Total funding liabilities / cost of funds	1,945,012		16,934		3.50		1,932,175		15,553		3.19		1,893,852		10,702		2.29

(1)Annualized.

($ in thousands)	For the Three Months Ended												Yield Change 1Q2024 vs.
	1Q2024				4Q2023				1Q2023
	Interest & Fees		Yield(1)		Interest & Fees		Yield(1)		Interest & Fees		Yield(1)		4Q2023		1Q2023
Loan Yield Component:
Contractual interest rate	$	28,877	6.41	%	$	28,596	6.36	%	$	25,477	5.97	%	0.05	%	0.44	%
SBA loan discount accretion	881		0.20		960		0.21		974		0.23		(0.01)		(0.03)
Amortization of net deferred fees	54		0.01		(67)		(0.01)		79		0.02		0.02		(0.01)
Amortization of premium	(428)		(0.10)		(423)		(0.09)		(392)		(0.09)		(0.01)		(0.01)
Net interest recognized on nonaccrual loans	492		0.11		(345)		(0.08)		(243)		(0.06)		0.19		0.17
Prepayment penalties(2) and other fees	266		0.06		193		0.04		116		0.03		0.02		0.03
Yield on loans	$	30,142	6.69	%	$	28,914	6.43	%	$	26,011	6.10	%	0.26	%	0.59	%

(1)Annualized.

(2)Prepayment penalty income of $115 thousand, $43 thousand and $3 thousand for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023, respectively, was from Commercial Real Estate (“CRE”) and Commercial and Industrial (“C&I”) loans.

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First Quarter 2024 vs. Fourth Quarter 2023

Net interest income decreased $251 thousand, or 1.5%, primarily due to higher interest expense on deposits, partially offset by higher interest income on loans. Net interest margin was 3.06%, a decrease of 6 basis points from 3.12%.

◦A $1.5 million increase in interest expense on interest-bearing deposits was primarily due to a $78.4 million, or 6.3%, increase in average balance.

◦A $1.2 million increase in interest income on loans was primarily due to a $21.4 million, or 1.2%, increase in average balance and a $837 thousand increase in net interest recognized on nonaccrual loans.

First Quarter 2024 vs. First Quarter 2023

Net interest income decreased $1.9 million, or 10.7%, primarily due to higher interest expense on deposits and borrowings, partially offset by higher interest income on loans as our deposit and borrowing costs repriced more quickly than our interest-earning assets. Net interest margin was 3.06%, a decrease of 51 basis points from 3.57%.

◦A $5.3 million increase in interest expense on interest-bearing deposits was primarily due to a $125.6 million, or 10.5%, increase in average balance and a 125 basis point increase in average cost driven by the Federal Reserve’s rate increases.

◦A $939 thousand increase in interest expense on borrowings was primarily due to a $82.5 million, or 315.3%, increase in average balance.

◦A $4.1 million increase in interest income on loans was primarily due to a $83.5 million, or 4.8%, increase in average balance and a 59 basis point increase in average yield as a result of the Federal Reserve’s rate increases.

Provision for Credit Losses

($ in thousands)	For the Three Months Ended
	1Q2024		4Q2023		1Q2023
Provision for (reversal of) credit losses on loans	$	193	$	537	$	(258)
Provision for (reversal of ) credit losses on off-balance sheet exposure	(48)		93		(80)
Total provision for (reversal of) credit losses	$	145	$	630	$	(338)

First Quarter 2024 vs. Fourth Quarter 2023

The Company recorded a $145 thousand provision for credit losses, a decrease of $485 thousand, compared with a $630 thousand provision for credit losses.

Provision for credit losses on loans was $193 thousand, primarily due to a $1.8 million increase in the quantitative general reserve, mostly offset by a $1.7 million decrease in the qualitative reserve. The increase in the quantitative reserve was due to the increase in the average life of home mortgage loans because of the slower prepayment rate based on the 2-year look back period. The decrease in the

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qualitative reserve was due to noticeable improvements in various asset quality metrics and improving economic and business conditions.

First Quarter 2024 vs. First Quarter 2023

The Company recorded a $145 thousand provision for credit losses, a decrease of $483 thousand, compared with a $338 thousand reversal of credit losses.

Noninterest Income

($ in thousands)	For the Three Months Ended						% Change 1Q2024 vs.
	1Q2024		4Q2023		1Q2023		4Q2023		1Q2023
Noninterest Income
Service charges on deposits	$	612	$	557	$	418	9.9	%	46.4	%
Loan servicing fees, net of amortization	772		540		846		43.0		(8.7)
Gain on sale of loans	1,703		1,996		2,570		(14.7)		(33.7)
Other income	499		587		461		(15.0)		8.2
Total noninterest income	$	3,586	$	3,680	$	4,295	(2.6)	%	(16.5)	%

First Quarter 2024 vs. Fourth Quarter 2023

Noninterest income decreased $94 thousand, or 2.6%, primarily due to lower gain on sale of loans, partially offset by higher loan servicing fee.

◦Gain on sale of loans was $1.7 million, a decrease of $293 thousand from $2.0 million, primarily due to a lower Small Business Administration (“SBA”) loan sold amount partially offset by a higher average premium on sales. The Bank sold $24.8 million in SBA loans at an average premium rate of 8.33%, compared to the sale of $40.1 million at an average premium rate of 5.99%.

◦Loan servicing fees, net of amortization, was $772 thousand, an increase of $232 thousandfrom $540 thousand, primarily due to a decrease in servicing fee amortization driven by lower loan payoffs in loan servicing portfolio.

First Quarter 2024 vs. First Quarter 2023

Noninterest income decreased $709 thousand, or 16.5%, primarily due to a lower gain on sale of loans, partially offset by higher service charges on deposits.

◦Gain on sale of loans was $1.7 million, a decrease of $867 thousand from $2.6 million, primarily due to a lower SBA loan sold amount. The Bank sold $24.8 million in SBA loans at an average premium rate of 8.33%, compared to the sale of $44.7 million at an average premium rate of 7.33%.

◦Service charges on deposits was $612 thousand, and an increase of $194 thousand from $418 thousand, primarily due to an increase in deposit analysis fees from an increase in the number of analysis accounts.

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Noninterest Expense

($ in thousands)	For the Three Months Ended						% Change 1Q2024 vs.
	1Q2024		4Q2023		1Q2023		4Q2023		1Q2023
Noninterest Expense
Salaries and employee benefits	$	7,841	$	7,646	$	7,252	2.6	%	8.1	%
Occupancy and equipment	1,655		1,616		1,570		2.4		5.4
Data processing and communication	487		644		550		(24.4)		(11.5)
Professional fees	395		391		359		1.0		10.0
FDIC insurance and regulatory assessments	374		237		467		57.8		(19.9)
Promotion and advertising	149		86		162		73.3		(8.0)
Directors’ fees	157		145		161		8.3		(2.5)
Foundation donation and other contributions	540		524		753		3.1		(28.3)
Other expenses	559		694		634		(19.5)		(11.8)
Total noninterest expense	$	12,157	$	11,983	$	11,908	1.5	%	2.1	%

First Quarter 2024 vs. Fourth Quarter 2023

Noninterest expense increased $174 thousand, or 1.5%, primarily due to higher salaries and employee benefits, and FDIC insurance and regulatory assessments, partially offset by lower data processing and communication and other expenses.

◦Salaries and employee benefits increased $195 thousand, primarily due to increases in employer payroll taxes and employee vacation accruals, partially offset by lower employee incentive accruals.

◦FDIC insurance and regulatory assessments increased $137 thousand, primarily due to a lower expense in the fourth quarter of 2023 as a result of an accrual adjustment.

◦Data processing and communication decreased $157 thousand, primarily due to an accrual adjustment for a credit received on data processing fees in the first quarter of 2024.

First Quarter 2024 vs. First Quarter 2023

Noninterest expense increased $249 thousand, or 2.1%, primarily due to higher salaries and employee benefits, partially offset by lower foundation donation and other contributions.

◦Salaries and employee benefits increased $589 thousand, primarily due to an increase from employee salary adjustments in 2023 and an increase in employee health insurance.

◦Foundation donations and other contributions decreased $213 thousand, primarily due to a lower donation accrual for Open Stewardship as a result of lower net income.

Income Tax Expense

First Quarter 2024 vs. Fourth Quarter 2023

Income tax expense was $2.0 million and the effective tax rate was 28.1%, compared to income tax expense of $2.1 million and the effective rate of 29.1%. The decrease in the effective tax rate was primarily due to an increased tax benefits from an increase in low income housing tax credit investments.

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First Quarter 2024 vs. First Quarter 2023

Income tax expense was $2.0 million and the effective tax rate was 28.1%, compared to income tax expense of $3.1 million and an effective rate of 29.0%. The decrease in the effective tax rate was primarily due to an increased tax benefits from an increase in low income housing tax credit investments.

BALANCE SHEET HIGHLIGHTS

Loans

($ in thousands)	As of						% Change 1Q2024 vs.
	1Q2024		4Q2023		1Q2023		4Q2023		1Q2023
CRE loans	$	905,534	$	885,585	$	833,615	2.3	%	8.6	%
SBA loans	247,550		239,692		238,994		3.3		3.6
C&I loans	147,508		120,970		117,841		21.9		25.2
Home mortgage loans	502,995		518,024		500,635		(2.9)		0.5
Consumer & other loans	1,400		1,574		1,400		(11.1)		—
Gross loans	$	1,804,987	$	1,765,845	$	1,692,485	2.2	%	6.6	%

The following table presents new loan originations based on loan commitment amounts for the periods indicated:

($ in thousands)	For the Three Months Ended						% Change 1Q2024 vs.
	1Q2024		4Q2023		1Q2023		4Q2023		1Q2023
CRE loans	$	44,596	$	15,885	$	24,200	180.7	%	84.3	%
SBA loans	52,379		51,855		16,258		1.0		222.2
C&I loans	23,775		15,270		7,720		55.7		208.0
Home mortgage loans	2,478		12,417		20,617		(80.0)		(88.0)
Consumer & other loans	—		1,500		—		(100.0)		—
Gross loans	$	123,228	$	96,927	$	68,795	27.1	%	79.1	%

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The following table presents changes in gross loans by loan activity for the periods indicated:

($ in thousands)	For the Three Months Ended
	1Q2024		4Q2023		1Q2023
Loan Activities:
Gross loans, beginning	$	1,765,845	$	1,759,525	$	1,678,292
New originations	123,228		96,927		68,795
Net line advances	15,313		(7,350)		10,356
Purchases	—		2,371		12,142
Sales	(32,106)		(40,122)		(45,021)
Paydowns	(24,557)		(19,901)		(40,190)
Payoffs	(28,539)		(23,590)		(28,326)
PPP payoffs	—		—		(200)
Decrease (increase) in loans held for sale	(14,280)		(1,795)		36,802
Other	83		(220)		(165)
Total	39,142		6,320		14,193
Gross loans, ending	$	1,804,987	$	1,765,845	$	1,692,485

As of March 31, 2024 vs. December 31, 2023

Gross loans were $1.80 billion as of March 31, 2024, up $39.1 million, from December 31, 2023, primarily due to new loan originations, partially offset by loan sales, payoffs and paydowns.

New loan originations, loan sales, and loan payoffs and paydowns were $123.2 million $32.1 million and $53.1 million, respectively, for the first quarter of 2024, compared with $96.9 million, $40.1 million and $43.5 million, respectively, for the fourth quarter of 2023.

As of March 31, 2024 vs. March 31, 2023

Gross loans were $1.80 billion as of March 31, 2024, up $112.5 million, from March 31, 2023, primarily due to new loan originations of $428.9 million and loan purchases of $15.5 million, primarily offset by loan sales of $132.4 million and loan payoffs and paydowns of $198.2 million.

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

($ in thousands)	As of
	1Q2024				4Q2023				1Q2023
	%		Rate		%		Rate		%		Rate
Fixed rate	35.1	%	5.17	%	35.1	%	5.07	%	36.5	%	4.76	%
Hybrid rate	32.8		5.22		33.9		5.15		34.2		4.94
Variable rate	32.1		9.16		31.0		9.15		29.3		8.76
Gross loans	100.0	%	6.47	%	100.0	%	6.35	%	100.0	%	5.99	%

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

($ in thousands)	As of March 31, 2024
	Within One Year				One Year Through Five Years				After Five Years				Total
	Amount		Rate		Amount		Rate		Amount		Rate		Amount		Rate
Fixed rate	$	125,369	5.81	%	$	282,814	4.93	%	$	226,332	5.11	%	$	634,515	5.17	%
Hybrid rate	—		—		138,336		4.17		453,281		5.54		591,617		5.22
Variable rate	113,184		8.79		130,126		9.02		335,545		9.34		578,855		9.16
Gross loans	$	238,553	7.22	%	$	551,276	5.71	%	$	1,015,158	6.70	%	$	1,804,987	6.47	%

Allowance for Credit Losses

The Company adopted the Current Expected Credit Losses (“CECL”) accounting standard effective as of January 1, 2023 under a modified retrospective approach. The adoption resulted in a $1.9 million increase to the allowance for credit losses on loans, a $184 thousand increase to the allowance for credit losses on off-balance sheet exposure, a $624 thousand increase to deferred tax assets, and a $1.5 million charge to retained earnings.

The following table presents allowance for credit losses and provision for credit losses as of and for the periods presented:

($ in thousands)	As of and For the Three Months Ended						% Change 1Q2024 vs.
	1Q2024		4Q2023		1Q2023		4Q2023		1Q2023
Allowance for credit losses on loans, beginning	$	21,993	$	21,617	$	19,241	1.7	%	14.3	%
Impact of CECL adoption	—		—		1,924		n/m		n/m
Provision for (reversal of) credit losses	193		537		(258)		(64.1)		(174.8)
Gross charge-offs	(68)		(236)		(116)		(71.2)		(41.4)
Gross recoveries	11		75		23		(85.3)		(52.2)
Net charge-offs	(57)		(161)		(93)		(64.6)		(38.7)
Allowance for credit losses on loans, ending	$	22,129	$	21,993	$	20,814	0.6	%	6.3	%
Allowance for credit losses on off-balance sheet exposure, beginning	$	516	$	423	$	263	22.0	%	96.2	%
Impact of CECL adoption	—		—		184		n/m		n/m
Provision for (reversal of) credit losses	(48)		93		(80)		(151.6)		(40.0)
Allowance for credit losses on off-balance sheet exposure, ending	$	468	$	516	$	367	(9.3)	%	27.5	%

10

Asset Quality

($ in thousands)	As of and For the Three Months Ended									Change 1Q2024 vs.
	1Q2024			4Q2023			1Q2023			4Q2023		1Q2023
Loans 30-89 days past due and still accruing	$	3,904		$	9,607		$	4,866		(59.4)	%	(19.8)	%
As a % of gross loans	0.22		%	0.54		%	0.29		%	(0.32)		(0.07)
Nonperforming loans(1)	$	4,343		$	6,082		$	2,504		(28.6)	%	73.4	%
Nonperforming assets(1)	5,580			6,082			2,504			(8.3)		122.8
Nonperforming loans to gross loans	0.24		%	0.34		%	0.15		%	(0.10)		0.09
Nonperforming assets to total assets	0.25		%	0.28		%	0.12		%	(0.03)		0.13
Criticized loans(1)(2)	$	11,564		$	13,349		$	5,772		(13.4)	%	100.3	%
Criticized loans to gross loans	0.64		%	0.76		%	0.34		%	(0.12)		0.30
Allowance for credit losses ratios:
As a % of gross loans	1.23		%	1.25		%	1.23		%	(0.02)	%	—	%
As a % of nonperforming loans	510			362			831			148		(321)
As a % of nonperforming assets	397			362			831			35		(434)
As a % of criticized loans	191			165			361			26		(170)
Net charge-offs(3) to average gross loans(4)	0.01			0.04			0.02			(0.03)		(0.01)

(1)Excludes the guaranteed portion of SBA loans that are in liquidation totaling $3.1 million, $2.0 million and $1.9 million as of March 31, 2024, December 31, 2023 and March 31, 2023, respectively.

(2)Consists of special mention, substandard, doubtful and loss categories.

(3)Annualized.

(4)Includes loans held for sale.

Overall, the Bank continued to maintain low levels of nonperforming loans and net charge-offs. Our allowance remained strong with an allowance to gross loans ratio of 1.23%.

◦Loans 30-89 days past due and still accruing were $3.9 million or 0.22% of gross loans as of March 31, 2024, compared with $9.6 million or 0.54% as of December 31, 2023. Several past due home mortgage loans were paid off through voluntary sale and several home mortgage and SBA loans were brought current.

◦Nonperforming loans were $4.3 million or 0.24% of gross loans as of March 31, 2024, compared with $6.1 million or 0.34% as of December 31, 2023. Several escrows on the nonperforming home mortgage loans were closed during the quarter with full payoffs.

◦Nonperforming assets were $5.6 million or 0.25% of total assets as of March 31, 2024, compared with $6.1 million or 0.28% as of December 31, 2023. Other Real Estate Owned (“OREO”) was $1.2 million as of March 31, 2024, which is secured by a mix-use property in

11

Los Angeles Koreatown with 90% guaranteed by SBA. We are in receipt of a few written offers above the OREO balance and negotiating the terms of the offer.

◦Criticized loans were $11.6 million or 0.64% of gross loans as of March 31, 2024, compared with $13.3 million or 0.76% as of December 31, 2023. The improvement was due to the payoffs of several nonperforming home mortgage loans.

◦Net charge-offs were $57 thousand or 0.01% of average loans in the first quarter of 2024, compared to net charge-offs of $161 thousand, or 0.04% of average loans in the fourth quarter of 2023 and of $93 thousand, or 0.02% of average loans in the first quarter of 2023. The charge-off in the first quarter of 2024 was the reversal of the accrued interest on three loans totaling $519 thousand that were placed on nonaccrual during the same quarter.

Deposits

($ in thousands)	As of												% Change 1Q2024 vs.
	1Q2024				4Q2023				1Q2023
	Amount		%		Amount		%		Amount		%		4Q2023		1Q2023
Noninterest-bearing deposits	$	539,396	28.5	%	$	522,751	28.9	%	$	643,902	33.8	%	3.2	%	(16.2)	%
Money market deposits and others	327,718		17.3		399,018		22.1		436,796		22.9		(17.9)		(25.0)
Time deposits	1,028,297		54.2		885,789		49.0		824,120		43.3		16.1		24.8
Total deposits	$	1,895,411	100.0	%	$	1,807,558	100.0	%	$	1,904,818	100.0	%	4.9	%	(0.5)	%
Estimated uninsured deposits	$	1,248,644	65.9	%	$	1,156,270	64.0	%	$	900,579	47.3	%	8.0	%	38.6	%

As of March 31, 2024 vs. December 31, 2023

Total deposits were $1.90 billion as of March 31, 2024, up $87.9 million from December 31, 2023, primarily due to increases of $142.5 million in time deposits and $16.6 million in noninterest-bearing deposit, offset by a $71.3 million decrease in money market deposits. Noninterest-bearing deposits, as a percentage of total deposits, decreased to 28.5% from 28.9%. The composition shift to time deposits was primarily due to customers’ continued preference for high-rate deposit products driven by the Federal Reserve’s rate increases.

As of March 31, 2024 vs. March 31, 2023

Total deposits were $1.90 billion as of March 31, 2024, down $9.4 million from March 31, 2023, primarily driven by decreases of $104.5 million in noninterest-bearing deposits and $109.1 million in money market deposits, offset by a $204.2 million increase in time deposits. The composition shift to time deposits was primarily due to customers’ preference for high-rate deposit products driven by market rate increases as a result of the Federal Reserve’s rate increases.

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The following table sets forth the maturity of time deposits as of March 31, 2024:

	As of March 31, 2024
($ in thousands)	Within Three Months			Three to Six Months			Six to Nine Months			Nine to Twelve Months			After Twelve Months			Total
Time deposits (more than $250)	$	95,516		$	65,321		$	143,382		$	142,830		$	4,448		$	451,497
Time deposits ($250 or less)	151,358			102,471			186,340			104,481			32,150			576,800
Total time deposits	$	246,874		$	167,792		$	329,722		$	247,311		$	36,598		$	1,028,297
Weighted average rate	4.97		%	4.99		%	5.18		%	5.04		%	4.25		%	5.03		%

OTHER HIGHLIGHTS

Liquidity

The Company maintains ample access to liquidity, including highly liquid assets on our balance sheet and available unused borrowings from other financial institutions. The following table presents the Company's liquid assets and available borrowings as of dates presented:

($ in thousands)	1Q2024			4Q2023			1Q2023
Liquidity Assets:
Cash and cash equivalents	$	139,246		$	91,216		$	181,509
Available-for-sale debt securities	187,225			194,250			212,767
Liquid assets	$	326,471		$	285,466		$	394,276
Liquid assets to total assets	14.6		%	13.3		%	18.2		%
Available borrowings:
Federal Home Loan Bank—San Francisco	$	331,917		$	363,615		$	406,500
Federal Reserve Bank	185,913			182,989			174,284
Pacific Coast Bankers Bank	50,000			50,000			50,000
Zions Bank	25,000			25,000			25,000
First Horizon Bank	25,000			25,000			24,950
Total available borrowings	$	617,830		$	646,604		$	680,734
Total available borrowings to total assets	27.6		%	30.1		%	31.4		%
Liquid assets and available borrowings to total deposits	49.8		%	51.6		%	56.4		%

Capital and Capital Ratios

On April 25, 2024, the Company’s Board of Directors declared a quarterly cash dividend of $0.12 per share of its common stock. The cash dividend is payable on or about May 23, 2024 to all shareholders of record as of the close of business on May 9, 2024. The payment of the dividend is based primarily on dividends from the Bank to the Company, and future dividends will depend on the Board’s assessment of

13

the availability of capital levels to support the ongoing operating capital needs of both the Company and the Bank.

The Company also repurchased 49,697 shares of its common stock at an average price of $10.02 per share during the first quarter of 2024 under the stock repurchase program announced in August 2023. Since the announcement of the initial stock repurchase program in January 2019, the Company repurchased a total of 2,069,697 shares of its common stock at an average repurchase price of $8.63 per share through March 31, 2024.

	Basel III
	OP Bancorp(1)		Open Bank		Minimum Well Capitalized Ratio		Minimum Capital Ratio+ Conservation Buffer(2)
Risk-Based Capital Ratios:
Total risk-based capital ratio	13.59	%	13.53	%	10.00	%	10.50	%
Tier 1 risk-based capital ratio	12.34		12.28		8.00		8.50
Common equity tier 1 ratio	12.34		12.28		6.50		7.00
Leverage ratio	9.65		9.60		5.00		4.00

(1)The capital requirements are only applicable to the Bank, and the Company's ratios are included for comparison purpose.

(2)An additional 2.5% capital conservation buffer above the minimum capital ratios are required in order to avoid limitations on distributions, including dividend payments and certain discretionary bonuses to executive officers.

OP Bancorp	Basel III									Change 1Q2024 vs.
	1Q2024			4Q2023			1Q2023			4Q2023		1Q2023
Risk-Based Capital Ratios:
Total risk-based capital ratio	13.59		%	13.77		%	13.27		%	(0.18)	%	0.32	%
Tier 1 risk-based capital ratio	12.34			12.52			12.06			(0.18)		0.28
Common equity tier 1 ratio	12.34			12.52			12.06			(0.18)		0.28
Leverage ratio	9.65			9.57			9.43			0.08		0.22
Risk-weighted Assets ($ in thousands)	$	1,715,185		$	1,667,067		$	1,659,584		2.89		3.35

14

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 in California, the Dallas metropolitan area in Texas, and Clark County in Nevada 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 eleven full-service branch offices in Downtown Los Angeles, Los Angeles Fashion District, Los Angeles Koreatown, Cerritos, Gardena, Buena Park, and Santa Clara, California, Carrollton, Texas and Las Vegas, Nevada. The Bank also has four loan production offices in Pleasanton, California, Atlanta, Georgia, Aurora, Colorado, and Lynnwood, 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.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain matters set forth herein constitute “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, including forward-looking statements relating to the Company’s current business plans and expectations regarding future operating results. 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: the effects of substantial fluctuations in, and continuing elevated levels of, interest rates on our borrowers’ ability to perform in accordance with the terms of their loans and on our deposit customers’ expectation for higher rates on deposit products; cybersecurity risks, including the potential for the occurrence of successful cyberattacks and our ability to prevent and to mitigate the harms resulting from any such attacks; business and economic conditions, particularly those affecting the financial services industry and our primary market areas; risks of international conflict, terrorism, civil unrest and domestic instability; the continuing effects of inflation and monetary policies, particularly those relating to the decisions and indicators of intent expressed by the Federal Reserve Open Markets Committee, as those circumstances impact our operations and our current and prospective borrowers and depositors; our ability to balance deposit liabilities and liquidity sources (including our ability to reprice those instruments and balancing our borrowings and investments to keep pace with changing market conditions) so as to meet current and expected withdrawals while promoting strong earning capacity; our ability to manage our credit risk successfully and to assess, adjust and monitor the sufficiency of our allowance for credit losses; 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, the success of construction projects that we finance, including any loans acquired in acquisition transactions; the impacts of credit quality on our earnings and the related effects of increases to the reserve on our net income; our ability effectively to execute our strategic plan and manage our growth; interest rate fluctuations, which could have an adverse effect on our profitability; external economic and/or market factors, such as changes in monetary and fiscal policies and laws, including 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 banks and from credit unions and non-bank financial services companies, many of which are subject to less restrictive or less costly regulations than we are; challenges arising from unsuccessful attempts to expand into new geographic markets, products, or services; practical and regulatory constraints on the ability of Open Bank to pay dividends to us; increased capital requirements imposed by banking regulators, which may require us to

15

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; including internal controls that affect the reliability of our publicly reported financial statements; inaccuracies in our assumptions about future events, which could result in material differences between our financial projections and actual financial performance, particularly with respect to the effects of predictions of future economic conditions as those circumstances affect our estimates for the adequacy of our allowance for credit losses and the related provision expense; 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; political developments, uncertainties or instability, catastrophic events, or natural disasters, such as earthquakes, fires, drought, pandemic diseases (such as the coronavirus) or extreme weather events, any of which may affect services we use or affect our customers, employees or third parties with which we conduct business; 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; 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, 2023 and in our other subsequent filings with the Securities and Exchange Commission.

Contact

Investor Relations

OP Bancorp

Christine Oh

EVP & CFO

213.892.1192

Christine.oh@myopenbank.com

16

CONSOLIDATED BALANCE SHEETS (unaudited)

($ in thousands)	As of						% Change 1Q2024 vs.
	1Q2024		4Q2023		1Q2023		4Q2023		1Q2023
Assets
Cash and due from banks	$	20,513	$	16,948	$	16,781	21.0	%	22.2	%
Interest-bearing deposits in other banks	118,733		74,268		164,728		59.9		(27.9)
Cash and cash equivalents	139,246		91,216		181,509		52.7		(23.3)
Available-for-sale debt securities, at fair value	187,225		194,250		212,767		(3.6)		(12.0)
Other investments	16,264		16,276		12,172		(0.1)		33.6
Loans held for sale	16,075		1,795		7,534		795.5		113.4
CRE loans	905,534		885,585		833,615		2.3		8.6
SBA loans	247,550		239,692		238,994		3.3		3.6
C&I loans	147,508		120,970		117,841		21.9		25.2
Home mortgage loans	502,995		518,024		500,635		(2.9)		0.5
Consumer loans	1,400		1,574		1,400		(11.1)		—
Gross loans receivable	1,804,987		1,765,845		1,692,485		2.2		6.6
Allowance for credit losses	(22,129)		(21,993)		(20,814)		0.6		6.3
Net loans receivable	1,782,858		1,743,852		1,671,671		2.2		6.7
Premises and equipment, net	4,971		5,248		4,647		(5.3)		7.0
Accrued interest receivable, net	8,370		8,259		7,302		1.3		14.6
Servicing assets	11,405		11,741		12,898		(2.9)		(11.6)
Company owned life insurance	22,399		22,233		21,762		0.7		2.9
Deferred tax assets, net	13,802		13,309		12,323		3.7		12.0
Other real estate owned	1,237		—		—		n/m		n/m
Operating right-of-use assets	8,864		8,497		9,459		4.3		(6.3)
Other assets	21,804		31,054		16,550		(29.8)		31.7
Total assets	$	2,234,520	$	2,147,730	$	2,170,594	4.0	%	2.9	%
Liabilities and Shareholders' Equity
Liabilities:
Noninterest-bearing	$	539,396	$	522,751	$	643,902	3.2	%	(16.2)	%
Money market and others	327,718		399,018		436,796		(17.9)		(25.0)
Time deposits greater than $250	451,497		433,892		411,648		4.1		9.7
Other time deposits	576,800		451,897		412,472		27.6		39.8
Total deposits	1,895,411		1,807,558		1,904,818		4.9		(0.5)
Federal Home Loan Bank advances	105,000		105,000		50,000		—		110.0
Accrued interest payable	12,270		12,628		5,751		(2.8)		113.4
Operating lease liabilities	9,614		9,341		10,513		2.9		(8.6)
Other liabilities	17,500		20,577		15,731		(15.0)		11.2
Total liabilities	2,039,795		1,955,104		1,986,813		4.3		2.7
Shareholders' equity:
Common stock	75,957		76,280		79,475		(0.4)		(4.4)
Additional paid-in capital	11,240		10,942		10,056		2.7		11.8
Retained earnings	124,280		120,855		109,908		2.8		13.1
Accumulated other comprehensive loss	(16,752)		(15,451)		(15,658)		8.4		7.0
Total shareholders’ equity	194,725		192,626		183,781		1.1		6.0
Total liabilities and shareholders' equity	$	2,234,520	$	2,147,730	$	2,170,594	4.0	%	2.9	%

17

CONSOLIDATED STATEMENTS OF INCOME (unaudited)

($ in thousands, except share and per share data)	For the Three Months Ended						% Change 1Q2024 vs.
	1Q2024		4Q2023		1Q2023		4Q2023		1Q2023
Interest income
Interest and fees on loans	$	30,142	$	28,914	$	26,011	4.2	%	15.9	%
Interest on available-for-sale debt securities	1,460		1,484		1,566		(1.6)		(6.8)
Other interest income	1,311		1,385		1,017		(5.3)		28.9
Total interest income	32,913		31,783		28,594		3.6		15.1
Interest expense
Interest on deposits	15,675		14,127		10,382		11.0		51.0
Interest on borrowings	1,259		1,426		320		(11.7)		293.4	%
Total interest expense	16,934		15,553		10,702		8.9		58.2
Net interest income	15,979		16,230		17,892		(1.5)		(10.7)
Provision for (reversal of) credit losses	145		630		(338)		(77.0)		n/m
Net interest income after provision for credit losses	15,834		15,600		18,230		1.5		(13.1)
Noninterest income
Service charges on deposits	612		557		418		9.9		46.4
Loan servicing fees, net of amortization	772		540		846		43.0		(8.7)
Gain on sale of loans	1,703		1,996		2,570		(14.7)		(33.7)
Other income	499		587		461		(15.0)		8.2
Total noninterest income	3,586		3,680		4,295		(2.6)		(16.5)
Noninterest expense
Salaries and employee benefits	7,841		7,646		7,252		2.6		8.1
Occupancy and equipment	1,655		1,616		1,570		2.4		5.4
Data processing and communication	487		644		550		(24.4)		(11.5)
Professional fees	395		391		359		1.0		10.0
FDIC insurance and regulatory assessments	374		237		467		57.8		(19.9)
Promotion and advertising	149		86		162		73.3		(8.0)
Directors’ fees	157		145		161		8.3		(2.5)
Foundation donation and other contributions	540		524		753		3.1		(28.3)
Other expenses	559		694		634		(19.5)		(11.8)
Total noninterest expense	12,157		11,983		11,908		1.5		2.1
Income before income tax expense	7,263		7,297		10,617		(0.5)		(31.6)
Income tax expense	2,037		2,125		3,083		(4.1)		(33.9)
Net income	$	5,226	$	5,172	$	7,534	1.0	%	(30.6)	%
Book value per share	$	13.00	$	12.84	$	12.02	1.2	%	8.2	%
Earnings per share - basic	0.34		0.34		0.48		—		(29.2)
Earnings per share - diluted	0.34		0.34		0.48		—		(29.2)
Shares of common stock outstanding, at period end	14,982,555		15,000,436		15,286,558		(0.1)	%	(2.0)	%
Weighted average shares:
- Basic	14,991,835		15,027,110		15,284,350		(0.2)	%	(1.9)	%
- Diluted	14,991,835		15,034,822		15,312,673		(0.3)		(2.1)

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KEY RATIOS

	For the Three Months Ended						% Change 1Q2024 vs.
	1Q2024		4Q2023		1Q2023		4Q2023		1Q2023
Return on average assets (ROA)(1)	0.96	%	0.96	%	1.43	%	—	%	(0.5)	%
Return on average equity (ROE)(1)	10.83		11.18		16.82		(0.4)		(6.0)
Net interest margin(1)	3.06		3.12		3.57		(0.1)		(0.5)
Efficiency ratio	62.14		60.19		53.67		2.0		8.5
Total risk-based capital ratio	13.59	%	13.77	%	13.27	%	(0.2)	%	0.3	%
Tier 1 risk-based capital ratio	12.34		12.52		12.06		(0.2)		0.3
Common equity tier 1 ratio	12.34		12.52		12.06		(0.2)		0.3
Leverage ratio	9.65		9.57		9.43		0.1		0.2

(1)Annualized.

19

ASSET QUALITY

($ in thousands)	As of and For the Three Months Ended
	1Q2024			4Q2023			1Q2023
Nonaccrual loans(1)	$	4,343		$	6,082		$	2,504
Loans 90 days or more past due, accruing(2)	—			—			—
Nonperforming loans	4,343			6,082			2,504
OREO	1,237			—			—
Nonperforming assets	$	5,580		$	6,082		$	2,504
Criticized loans by risk categories:
Special mention loans	$	1,415		$	1,428		$	2,617
Classified loans(1)(3)	10,149			11,921			3,155
Total criticized loans	$	11,564		$	13,349		$	5,772
Criticized loans by loan type:
CRE loans	$	5,292		$	4,995		$	560
SBA loans	6,055			5,864			3,676
C&I loans	—			—			271
Home mortgage loans	217			2,490			1,265
Total criticized loans	$	11,564		$	13,349		$	5,772
Nonperforming loans / gross loans	0.24		%	0.34		%	0.15		%
Nonperforming assets / gross loans plus OREO	0.31			0.34			0.15
Nonperforming assets / total assets	0.25			0.28			0.12
Classified loans / gross loans	0.56			0.68			0.19
Criticized loans / gross loans	0.64			0.76			0.34
Allowance for credit losses ratios:
As a % of gross loans	1.23		%	1.25		%	1.23		%
As a % of nonperforming loans	510			362			831
As a % of nonperforming assets	397			362			831
As a % of classified loans	218			184			660
As a % of criticized loans	191			165			361
Net charge-offs	$	57		$	161		$	93
Net charge-offs(5) to average gross loans(6)	0.01		%	0.04		%	0.02		%

(1)Excludes the guaranteed portion of SBA loans that are in liquidation totaling $3.1 million, $2.0 million and $1.6 million as of March 31, 2024, December 31, 2023 and March 31, 2023, respectively.

(2)Excludes the guaranteed portion of SBA loans that are in liquidation totaling $246 thousand as of March 31, 2023.

(3)Consists of substandard, doubtful and loss categories.

(4)See the Reconciliation of GAAP to NON-GAAP Financial Measures.

(5)Annualized.

(6)Includes loans held for sale.

20

($ in thousands)	1Q2024		4Q2023		1Q2023
Accruing delinquent loans 30-89 days past due
30-59 days	$	801	$	5,945	$	4,866
60-89 days	3,103		3,662		—
Total	$	3,904	$	9,607	$	4,866

21

AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS

	For the Three Months Ended
	1Q2024						4Q2023						1Q2023
($ in thousands)	Average Balance		Interest and Fees		Yield/ Rate(1)		Average Balance		Interest and Fees		Yield/ Rate(1)		Average Balance		Interest and Fees		Yield/ Rate(1)
Interest-earning assets:
Interest-bearing deposits in other banks	$	73,047	$	989	5.35	%	$	78,496	$	1,076	5.36	%	$	74,162	$	846	4.56	%
Federal funds sold and other investments	16,265		322		7.92		16,115		309		7.66		12,130		171		5.65
Available-for-sale debt securities, at fair value	191,383		1,460		3.05		189,462		1,484		3.13		210,462		1,566		2.98
CRE loans	901,262		13,729		6.13		892,092		13,104		5.83		840,402		11,179		5.39
SBA loans	259,368		7,213		11.19		255,692		7,055		10.95		274,889		6,982		10.30
C&I loans	134,893		2,670		7.96		122,950		2,416		7.80		121,915		2,200		7.32
Home mortgage loans	512,023		6,495		5.07		515,840		6,315		4.90		486,800		5,633		4.63
Consumer loans	1,386		35		10.10		966		24		9.92		1,386		17		5.07
Loans(2)	1,808,932		30,142		6.69		1,787,540		28,914		6.43		1,725,392		26,011		6.10
Total interest-earning assets	2,089,627		32,913		6.32		2,071,613		31,783		6.10		2,022,146		28,594		5.71
Noninterest-earning assets	87,586						86,874						82,538
Total assets	$	2,177,213					$	2,158,487					$	2,104,684
Interest-bearing liabilities:
Money market deposits and others	$	367,386	$	3,940	4.31	%	$	377,304	$	3,993	4.20	%	$	409,813	$	3,150	3.12	%
Time deposits	954,442		11,735		4.94		866,142		10,134		4.64		786,381		7,232		3.73
Total interest-bearing deposits	1,321,828		15,675		4.77		1,243,446		14,127		4.51		1,196,194		10,382		3.52
Borrowings	108,681		1,259		4.66		118,764		1,426		4.76		26,168		320		4.95
Total interest-bearing liabilities	1,430,509		16,934		4.76		1,362,210		15,553		4.53		1,222,362		10,702		3.55
Noninterest-bearing liabilities:
Noninterest-bearing deposits	514,503						569,965						671,490
Other noninterest-bearing liabilities	39,207						41,312						31,648
Total noninterest-bearing liabilities	553,710						611,277						703,138
Shareholders’ equity	192,994						185,000						179,184
Total liabilities and shareholders’ equity	$	2,177,213					2,158,487						2,104,684
Net interest income / interest rate spreads			$	15,979	1.56	%			$	16,230	1.57	%			$	17,892	2.16	%
Net interest margin					3.06	%					3.12	%					3.57	%
Cost of deposits & cost of funds:
Total deposits / cost of deposits	$	1,836,331	$	15,675	3.43	%	$	1,813,411	$	14,127	3.09	%	$	1,867,684	$	10,382	2.25	%
Total funding liabilities / cost of funds	1,945,012		16,934		3.50		1,932,175		15,553		3.19		1,893,852		10,702		2.29

(1)Annualized.

(2)Includes loans held for sale.

22

EX-99.2

Exhibit 99.2

OP Bancorp Declares Quarterly Cash Dividend of $0.12 per Share

LOS ANGELES, April 25, 2024 — 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 $0.12 per share of its common stock. The dividend is payable on or about May 23, 2024 to all shareholders of record as of the close of business on May 9, 2024.

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 in California, the Dallas metropolitan area in Texas, and Clark County in Nevada 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 eleven full service branch offices in Downtown Los Angeles, Los Angeles Fashion District, Los Angeles Koreatown, Cerritos, Gardena, Buena Park, and Santa Clara, California, Carrollton, Texas, and Las Vegas, Nevada. The Bank also has four loan production offices in Pleasanton, California, Atlanta, Georgia, Aurora, Colorado, and Lynnwood, 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.comMember FDIC, Equal Housing Lender.

Contact

Investor Relations

OP Bancorp

Christine Oh

EVP & CFO

213.892.1192

Christine.oh@myopenbank.com

EX-99.3

2024 First Quarter Earnings Presentation April 25, 2024

Certain matters set forth herein constitute “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, including forward- looking statements relating to the Company’s current business plans and expectations regarding future operating results. 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: the effects of substantial fluctuations in, and continuing elevated levels of, interest rates on our borrowers’ ability to perform in accordance with the terms of their loans and on our deposit customers’ expectation for higher rates on deposit products; cybersecurity risks, including the potential for the occurrence of successful cyberattacks and our ability to prevent and to mitigate the harms resulting from any such attacks; business and economic conditions, particularly those affecting the financial services industry and our primary market areas; risks of international conflict, terrorism, civil unrest and domestic instability; the continuing effects of inflation and monetary policies, particularly those relating to the decisions and indicators of intent expressed by the Federal Reserve Open Markets Committee, as those circumstances impact our operations and our current and prospective borrowers and depositors; our ability to balance deposit liabilities and liquidity sources (including our ability to reprice those instruments and balancing our borrowings and investments to keep pace with changing market conditions) so as to meet current and expected withdrawals while promoting strong earning capacity; our ability to manage our credit risk successfully and to assess, adjust and monitor the sufficiency of our allowance for credit losses; 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, the success of construction projects that we finance, including any loans acquired in acquisition transactions; the impacts of credit quality on our earnings and the related effects of increases to the reserve on our net income; our ability effectively to execute our strategic plan and manage our growth; interest rate fluctuations, which could have an adverse effect on our profitability; external economic and/or market factors, such as changes in monetary and fiscal policies and laws, including 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 banks and from credit unions and non-bank financial services companies, many of which are subject to less restrictive or less costly regulations than we are; challenges arising from unsuccessful attempts to expand into new geographic markets, products, or services; practical and regulatory constraints on the ability of Open Bank to pay dividends to us; 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; including internal controls that affect the reliability of our publicly reported financial statements; inaccuracies in our assumptions about future events, which could result in material differences between our financial projections and actual financial performance, particularly with respect to the effects of predictions of future economic conditions as those circumstances affect our estimates for the adequacy of our allowance for credit losses and the related provision expense; 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; political developments, uncertainties or instability, catastrophic events, or natural disasters, such as earthquakes, fires, drought, pandemic diseases (such as the coronavirus) or extreme weather events, any of which may affect services we use or affect our customers, employees or third parties with which we conduct business; 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; 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, 2023 and in our other subsequent filings with the Securities and Exchange Commission. Cautionary Note Regarding Forward-Looking Statements 2

1Q-2024 Highlights vs 4Q-2023 3 (1) Annualized. (2) Excludes the guaranteed portion of SBA loans that are in liquidation. (3) Includes special mention, substandard, doubtful, and loss categories. Net Income $5.2M Earnings & Profitability Balance Sheet Growth Credit Quality Capital Adequacy • Net income of $5.23 million, compared to $5.17 million • Diluted earnings per share of $0.34, unchanged • ROAA(1) and ROAE(1) of 0.96% and 10.84%, compared to 0.96% and 11.18%, respectively • Net interest margin of 3.06%, compared to 3.12% • Efficiency ratio of 62.14%, compared to 60.19% • Total assets of $2.23 billion compared to $2.15 billion • Gross loans of $1.80 billion compared to $1.77 billion • Total deposits of $1.90 billion compared to $1.81 billion • Net loan charge-offs(1) to average gross loans of 0.01%, compared to 0.04% • Nonperforming loans(2) to gross loans of 0.24%, compared to 0.34%. • Criticized loans(2) (3) to gross loans of 0.64%, compared to 0.76% • Remained well-capitalized with a Common Equity Tier 1 (“CET1”) ratio of 12.34% • Book value per common share increased to $13.00, compared to $12.84 • Repurchased 49,697 shares of common stock at an average price of $10.02 per share • Paid quarterly cash dividend of $0.12 per share for the periods Diluted EPS $0.34 ROAA 0.96% ROAE 10.83% NIM 3.06% Efficiency 62.14%

Balance Sheet Trend 4 Gross Loans ($mm)Total Assets ($mm) Total Equity ($mm) & Book Value Per Share ($)Total Deposits ($mm)

Loan Trend 5 Loan Originations ($mm)Loan Composition ($mm) Loan Yields (%) Commercial Real Estate Concentration (%)

Loan by Interest Rate Type 6 Hybrid Loan Repricing Schedule ($mm)Composition by Interest Rate Type (%) Contractual Rates by Interest Rate Type (%) Loan Maturity Schedule ($mm)

Gross Loans Diversification with Growth 7

* Based on Call Report definitions, which includes real estate loans and SBA real estate loans. Commercial Real Estate Portfolio 8 CRE* Portfolio by Property TypeCRE* Portfolio by Collateral Type

* Based on Call Report definitions, which includes real estate loans and SBA real estate loans. ** Excludes SBA loans and USDA loans. Commercial Real Estate Portfolio 9 CRE Portfolio ** by Loan-to-Value Ratio (LTV)CRE Portfolio * by Location

Home Loan Portfolio 10 Home Loan Portfolio by LTVHome Loan Portfolio by Location Home Loan Portfolio by Occupancy Type

* Includes $1.0 million in USDA loans. SBA Loans 11 SBA Portfolio* by IndustrySBA Portfolio* by Location

* Includes $1.0 million in USDA loans. ** Includes $1.0 million in USDA loans but excludes $15.0 million in SBA C&I loans. SBA Loans 12 SBA Portfolio* by Collateral TypeSBA Portfolio** by LTV

Gross Loan Changes by Activity 13

Deposit Trend 14 Noninterest Bearing Deposits ($mm)Deposit Composition ($mm) Cost of Deposits (%) CD Maturity Schedule ($mm)

Earnings & Profitability 15 Noninterest Income ($mm)Net Interest Income ($mm) & Net Interest Margin (%) Interest Income & Interest Expense ($mm) Noninterest Income Components ($mm) * Ratios for interest income & interest expense are percentages of average assets and are annualized.

Earnings & Profitability 16 Efficiency Ratio (%)Noninterest Expense ($mm) Noninterest Expense Components ($mm) Efficiency Ratio Components (%) * Ratios for Efficiency Ratio Components are percentages of average assets and are annualized.

Earnings & Profitability 17 Pre-Provision Net Revenue ($mm)Provision for Loan Losses ($mm) Net Income ($mm) & Diluted EPS ($) Return on Assets & Return on Equity (%)

Source: Target Fed Funds Rate per Federal Open Market Committee guidance. Net Interest Margin Trend 18

Credit Quality 19 Criticized Loans ($mm)Nonperforming Loans ($mm) Net Charge-Offs ($mm)Allowance for Credit Losses** ($mm) * Exclude the guaranteed portion of SBA loans that are in liquidation. ** ACL was calculated under the CECL methodology in 2023; prior periods were calculated under the incurred loss methodology.

Liquidity & Capital 20 Total Liquidity ($mm)On Balance Sheet Liquidity ($mm) Tier 1 Leverage ($mm) Total Risk Based Capital ($mm)

Non-GAAP Reconciliation 21 Pre-Provision Net Revenue ($ in thousands) 1Q-24 4Q-23 3Q-23 2Q-23 1Q-23 Interest income 32,913$ 31,783$ 31,186$ 30,102$ 28,594$ Interest expense 16,934 15,553 13,873 12,850 10,702 Net interest income 15,979 16,230 17,313 17,252 17,892 Noninterest income 3,586 3,680 2,601 3,605 4,295 Noninterest expense 12,157 11,983 11,535 12,300 11,908 Pre-Provision Net Revenue (a) 7,408$ 7,927$ 8,379$ 8,557$ 10,279$ Reconciliation to Net Income: (Reversal of) provision for loan losses (b) 145 630 1,359 — (338) Provision for income taxes (c) 2,037 2,125 1,899 2,466 3,083 Net income (a) - (b) - (c) 5,226$ 5,172$ 5,121$ 6,091$ 7,534$ For the Three Months Ended Pre-provision net revenue removes provision for loan losses and income tax expense. Management believes that this non-GAAP measure, when taken together with the corresponding GAAP financial measures (as applicable), provides meaningful supplemental information regarding our performance. This non-GAAP financial measure also facilitates a comparison of our performance to prior periods.

XML

Cover	Apr. 25, 2024
Cover [Abstract]
Document Type	8-K
Document Period End Date	Apr. 25, 2024
Entity Registrant Name	OP BANCORP
Entity Incorporation, State or Country Code	CA
Entity File Number	001-38437
Entity Tax Identification Number	81-3114676
Entity Address, Address Line One	1000 Wilshire Blvd
Entity Address, Address Line Two	Suite 500
Entity Address, City or Town	Los Angeles
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	90017
City Area Code	213
Local Phone Number	892-9999
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, no par value
Trading Symbol	OPBK
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false
Entity Central Index Key	0001722010
Amendment Flag	false