OP Bancorp (OPBK) AI Stock Analysis

• Market Cap: $214.50M
• Dividend Yield: 3.32%
• Average Volume (3M): 43.61K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.77
• Revenue Growth: 9.10%
• EPS Growth: 12.36%
• Country: US
• Employees: 231
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.45
• Shares Outstanding: 14,885,614
• 10 Day Avg. Volume: 60,146
• 30 Day Avg. Volume: 43,607
• PEG Ratio: -1.08
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 1.53
• P/FCF Ratio: 7.89
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 1.77
• Enterprise Value/Gross Profit: 3.37
• Enterprise Value/Ebitda: 8.92
• 1Y Price Target: $16.50
• Price Target Upside: 14.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 1.68
• Revenue Forecast (FY): $94.70M

• Rating: 74 Outperform
• Price Target: $15.50 ▲(7.34% Upside)

OP Bancorp's overall stock score is driven by its solid financial performance, attractive valuation, and positive corporate events. The technical analysis supports a bullish outlook, although caution is advised due to potential overbought conditions. The company's stable financial position is slightly offset by cash flow challenges, which should be monitored for long-term sustainability.

Positive Factors

Regulatory Capital Strengthening

The $25M notes placement enhances regulatory capital, supporting growth and providing a buffer against potential financial stress.

Revenue Growth

Consistent revenue growth indicates a robust market position and effective customer engagement, crucial for long-term business sustainability.

Profitability Margins

Strong profit margins reflect efficient operations and cost management, ensuring the company's ability to generate sustainable earnings.

Negative Factors

Declining Free Cash Flow

The decline in free cash flow growth poses risks to liquidity and limits the company's ability to reinvest in growth opportunities.

Profitability Pressure

Decreasing profitability margins suggest potential challenges in cost control or revenue generation, impacting long-term financial health.

Cash Flow Challenges

Persistent cash flow issues can hinder operational flexibility and strategic investments, affecting future growth and stability.

OP Bancorp Business Overview & Revenue Model

Company Description

OP Bancorp operates as the bank holding company for Open Bank that provides banking products and services in California. It offers demand, checking, savings, money market, and time deposit accounts, as well as certificates of deposit. The company also provides commercial real estate, small business administration, commercial and industrial business, single-family residential, term, consumer, and home mortgage loans; trade financing products; and letters of credit, and SWIFT and export advice. In addition, it offers debit and credit card, online transfer and bill payment, electronic delivery of customer statements, and mobile banking solutions for iPhone and Android phones, including remote check deposit with mobile bill pay; direct deposits, cashier's checks, person to person payments, wire transfers, and automated clearing house (ACH) services; and cash management services, including balance reporting, transfers between accounts, wire transfer initiation, ACH origination, and stop payment services, as well as remote deposit capture, positive pay, zero balance accounts, and sweep accounts. As of January 27, 2022, the company operated nine full branch offices in Downtown Los Angeles, Los Angeles Fashion District, Los Angeles Koreatown, Gardena, Buena Park, and Santa Clara in California; and Carrollton, Texas. It also had four loan production offices in Atlanta, Georgia; Aurora, Colorado; and Lynnwood and Seattle in Washington. The company was founded in 2005 and is headquartered in Los Angeles, California.

How the Company Makes Money

OP Bancorp generates revenue through multiple key streams, primarily by earning interest on loans and fees associated with its banking services. The company issues loans, including mortgages, business loans, and consumer loans, which yield interest income. Additionally, OP Bancorp collects fees from deposit accounts and various banking services, contributing to its non-interest income. The bank also benefits from service fees related to transactions and account maintenance. Strategic partnerships and community engagement help to enhance its customer base and drive loan origination, thereby increasing its overall revenue. Overall, the bank's revenue model is heavily reliant on interest income from loans, supplemented by fees from deposits and services.

OP Bancorp Financial Statement Overview

Summary

OP Bancorp demonstrates stable revenue growth and reasonable profitability margins, though there is a slight downward trend in profitability. The balance sheet is solid with manageable leverage, but cash flow challenges, particularly in free cash flow, pose potential risks. Overall, the company is in a stable financial position but should address cash flow issues to ensure long-term sustainability.

Income Statement

OP Bancorp shows a stable revenue growth trajectory with a TTM revenue growth rate of 1.97%. The gross profit margin is healthy at 52.45%, and the net profit margin is solid at 13.91%. However, there is a declining trend in profitability margins compared to previous years, indicating potential pressure on cost management or revenue generation.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.29, indicating prudent leverage management. Return on equity is reasonable at 10.72%, reflecting effective use of equity. However, the equity ratio is not explicitly calculated, which could provide additional insights into financial stability.

Cash Flow

The cash flow situation presents challenges with a significant decline in free cash flow growth rate at -62.94%. The operating cash flow to net income ratio is strong at 1.42, suggesting good cash generation relative to net income. However, the declining free cash flow growth is a concern for future liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	160.31M	154.05M	135.85M	105.83M	80.17M	64.43M
Gross Profit	84.08M	79.28M	81.22M	91.55M	76.52M	50.17M
EBITDA	31.78M	30.44M	34.83M	48.09M	41.97M	19.54M
Net Income	22.30M	21.07M	23.92M	33.31M	28.84M	13.13M
Balance Sheet
Total Assets	2.56B	2.37B	2.15B	2.09B	1.73B	1.37B
Cash, Cash Equivalents and Short-Term Investments	205.53M	135.06M	285.56M	292.78M	265.90M	198.10M
Total Debt	62.24M	102.86M	114.34M	10.21M	10.31M	13.43M
Total Liabilities	2.35B	2.16B	1.96B	1.92B	1.56B	1.22B
Stockholders Equity	213.72M	204.99M	192.63M	176.92M	165.22M	143.37M
Cash Flow
Free Cash Flow	13.80M	29.78M	65.66M	82.32M	-29.40M	-5.47M
Operating Cash Flow	17.34M	31.34M	67.84M	83.73M	-28.28M	-4.85M
Investing Cash Flow	-179.84M	-187.42M	-75.97M	-461.78M	-286.04M	-147.07M
Financing Cash Flow	240.21M	199.80M	16.37M	345.56M	323.47M	172.29M

OP Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OPBK, the sentiment is Positive. The current price of 14.44 is above the 20-day moving average (MA) of 14.18, above the 50-day MA of 13.59, and above the 200-day MA of 12.96, indicating a bullish trend. The MACD of 0.37 indicates Negative momentum. The RSI at 57.96 is Neutral, neither overbought nor oversold. The STOCH value of 38.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OPBK.

OP Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LCNB	77 Outperform	$239.75M	9.94	8.97%	5.21%	5.07%	228.39%
OPBK	74 Outperform	$214.50M	9.19	10.99%	3.32%	9.10%	12.36%
HWBK	74 Outperform	$237.42M	10.35	14.27%	2.30%	0.16%	258.06%
FRAF	73 Outperform	$240.21M	14.93	9.91%	2.44%	12.06%	10.38%
BPRN	73 Outperform	$241.50M	13.88	6.73%	3.50%	12.92%	56.52%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
INBK	48 Neutral	$183.26M	-5.48	-8.99%	1.07%	2.49%	-248.43%

OP Bancorp Corporate Events

OP Bancorp Completes $25M Subordinated Notes Placement

On November 7, 2025, OP Bancorp completed a private placement of $25 million in fixed-to-floating rate subordinated notes due in 2035. The notes, which qualify as Tier 2 capital, will initially bear a fixed interest rate of 7.50% per annum until November 15, 2030, after which they will switch to a floating rate. The proceeds are intended to strengthen the regulatory capital of Open Bank and support its growth.

OP Bancorp Declares Quarterly Dividend Amid Strong Earnings

On October 23, 2025, OP Bancorp announced a quarterly cash dividend of $0.12 per share, payable on November 20, 2025, to shareholders of record as of November 6, 2025. The company reported a third-quarter 2025 net income of $6.7 million, an increase from the previous quarter and the same quarter last year, reflecting higher revenue, improved efficiency, and stable credit quality, which underscores its strong financial performance and operational discipline.