Op Bancorp ( (OPBK) ) has released its Q2 earnings. Here is a breakdown of the information Op Bancorp presented to its investors.
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OP Bancorp, the holding company for Open Bank, operates in the commercial banking sector with a focus on serving small- and medium-sized businesses, particularly within Korean and other ethnic minority communities, across California, Texas, and Nevada.
In its second quarter of 2025, OP Bancorp reported a net income of $6.3 million, marking an increase from the previous quarter’s $5.6 million. The company also achieved a diluted earnings per share of $0.42, up from $0.37 in the first quarter of 2025.
Key financial highlights include a 13% increase in net interest income to $19.7 million, driven by loan growth and improved loan yields, alongside a net interest margin expansion to 3.23%. The company’s total assets grew to $2.56 billion, with gross loans reaching $2.07 billion. Credit quality remained robust, with nonperforming loans decreasing to 0.43% of gross loans.
Despite a decrease in noninterest income by 18%, primarily due to lower gains on loan sales, the company’s noninterest expenses rose by 2%, influenced by higher salaries and promotional activities. OP Bancorp maintained strong capital levels, with a CET1 ratio of 11.01% and continued its strategic expansion with a new branch in Garden Grove, California.
Looking ahead, OP Bancorp’s management is committed to enhancing profitability through core banking operations, customer engagement, and maintaining strong credit quality and capital positions, as they continue to expand their footprint and service offerings.