OP Bancorp (OPBK) AI Stock Analysis

• Market Cap: $215.84M
• Dividend Yield: 3.32%
• Average Volume (3M): 43.61K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.75
• Revenue Growth: 9.10%
• EPS Growth: 12.36%
• Country: US
• Employees: 231
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.47
• 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: -1.01
• Enterprise Value/Revenue: -1.33
• Enterprise Value/Gross Profit: -2.50
• Enterprise Value/Ebitda: -5.66
• 1Y Price Target: $16.50
• Price Target Upside: 13.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $15.50 ▲(6.90% Upside)

The score is driven primarily by solid underlying financial performance (growth and cash-backed earnings) and attractive valuation (low P/E and solid yield). These positives are tempered by weaker technical momentum and increased leverage, with corporate events providing an additional modest positive tailwind.

Positive Factors

Consistent Revenue Growth

Sustained revenue expansion across 2020–2024 and into the trailing twelve months indicates durable core franchise growth driven by lending and deposit activity. That trend supports predictable interest income generation, underwriting scale and long-term earnings visibility for the bank.

Strong Cash Generation

FCF tracking near net income shows earnings are largely backed by cash, supporting dividend payments and internal funding for loan growth. Reliable cash conversion enhances resilience to shocks and gives management flexibility to invest in growth or shore up capital over the medium term.

Strengthened Regulatory Capital

Raising $25M of Tier 2 capital increases regulatory buffers and underpins the bank’s capacity to grow risk-weighted assets and lending. Stronger capital ratios reduce regulatory risk and support sustainable expansion of commercial and real estate lending over the coming years.

Negative Factors

Increased Leverage Since 2022

Material post‑2022 leverage growth reduces balance-sheet flexibility and raises vulnerability to rate or credit stress. Higher debt loads can limit strategic options, elevate funding sensitivity, and require stronger capital generation to maintain regulatory and investor confidence.

Margin Compression & Weaker ROE

Sustained margin compression and a declining ROE indicate the bank is earning less per unit of capital despite revenue gains. This trend pressures long‑term profitability, constrains capital accumulation, and may force strategic responses (pricing, mix shifts) to restore return profiles.

Higher-cost Subordinated Debt Burden

While the subordinated notes bolster capital, the 7.5% fixed coupon until 2030 materially raises funding costs for the period. Elevated interest expense can compress net interest margin and reduce net income available to shareholders, weighing on earnings durability until refinancing or coupon reset.

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

Solid revenue growth into TTM with positive profitability and generally strong cash generation (FCF reasonably tracks net income). Offsets include post-2022 leverage increase and signs of margin/return pressure versus 2021–2023, plus some missing TTM margin/leverage details.

Income Statement

Revenue has grown solidly over the last several years (2020–2024), and TTM (Trailing-Twelve-Months) revenue is also higher than 2024, indicating continued expansion. Profitability remains positive, with net income rising from 2024 to TTM, though earnings are below the 2022 peak. A key concern is margin compression versus 2021–2023 (notably lower net income in 2024 vs. 2023 despite higher revenue), suggesting weaker pricing/spreads or higher costs. Several TTM margin fields are unavailable, limiting visibility into the most recent profitability profile.

Balance Sheet

The balance sheet shows a growing asset base and steadily increasing shareholders’ equity over time, which supports long-term stability. However, leverage rose meaningfully after 2022: total debt increased sharply and debt relative to equity is materially higher in 2023–2024 than in 2020–2022, reducing balance-sheet flexibility. Return on equity weakened from the 2021–2022 period to 2024, implying less efficient profit generation on the capital base. Some TTM leverage/return fields are unavailable, so the most recent balance-sheet efficiency can’t be fully assessed.

Cash Flow

Cash generation is generally strong in recent years, with positive operating cash flow and free cash flow in 2022–2024 and in TTM (Trailing-Twelve-Months). Free cash flow is close to net income (about 0.87x in TTM and ~0.95–0.97x in 2022–2024), indicating earnings are reasonably backed by cash. The main weakness is volatility: operating cash flow and free cash flow were negative in 2020–2021, and free cash flow growth swung sharply (down in 2023–2024, then sharply up in TTM).

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	163.43M	154.05M	135.85M	105.83M	80.17M	64.43M
Gross Profit	87.08M	79.28M	81.22M	91.55M	76.52M	50.17M
EBITDA	38.43M	30.44M	34.83M	48.09M	41.97M	19.54M
Net Income	23.57M	21.07M	23.92M	33.31M	28.84M	13.13M
Balance Sheet
Total Assets	2.61B	2.37B	2.15B	2.09B	1.73B	1.37B
Cash, Cash Equivalents and Short-Term Investments	166.87M	135.06M	285.56M	292.78M	265.90M	198.10M
Total Debt	86.83M	102.86M	114.34M	10.21M	10.31M	13.43M
Total Liabilities	2.39B	2.16B	1.96B	1.92B	1.56B	1.22B
Stockholders Equity	221.50M	204.99M	192.63M	176.92M	165.22M	143.37M
Cash Flow
Free Cash Flow	24.38M	29.78M	65.66M	82.32M	-29.40M	-5.47M
Operating Cash Flow	27.90M	31.34M	67.84M	83.73M	-28.28M	-4.85M
Investing Cash Flow	-228.06M	-187.42M	-75.97M	-461.78M	-286.04M	-147.07M
Financing Cash Flow	200.16M	199.80M	16.37M	345.56M	323.47M	172.29M

OP Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 14.5 is above the 20-day moving average (MA) of 14.24, above the 50-day MA of 14.11, and above the 200-day MA of 13.32, indicating a bullish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 54.75 is Neutral, neither overbought nor oversold. The STOCH value of 42.23 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	73 Outperform	$249.12M	10.77	8.97%	5.32%	5.07%	228.39%
BPRN	72 Outperform	$253.61M	13.84	6.73%	3.50%	12.92%	56.52%
OPBK	70 Outperform	$215.84M	8.43	10.99%	3.32%	9.10%	12.36%
HWBK	69 Neutral	$240.80M	10.18	14.27%	2.39%	0.16%	258.06%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FRAF	67 Neutral	$231.07M	10.88	9.91%	2.51%	12.06%	10.38%
INBK	51 Neutral	$200.24M	-5.51	-8.99%	1.07%	2.49%	-248.43%

OP Bancorp Corporate Events

OP Bancorp Posts Strong Q4 2025 Earnings, Raises Dividend

On January 22, 2026, OP Bancorp reported fourth-quarter 2025 net income of $7.1 million, or diluted earnings per share of $0.47, up from $6.7 million, or $0.45, in the third quarter of 2025 and $5.0 million, or $0.33, in the year-earlier quarter, driven by a 3% increase in net interest income and a 61% reduction in provision for credit losses. The company also declared a quarterly cash dividend of $0.12 per share on its common stock, payable on February 19, 2026 to shareholders of record as of February 5, 2026, while highlighting modest growth in average loans and deposits, stable asset quality, and robust capital ratios, underscoring strengthened profitability and balance sheet resilience as it closed out 2025.

The most recent analyst rating on (OPBK) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on OP Bancorp stock, see the OPBK Stock Forecast page.

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.

The most recent analyst rating on (OPBK) stock is a Hold with a $14.50 price target. To see the full list of analyst forecasts on OP Bancorp stock, see the OPBK Stock Forecast page.