OP Bancorp (OPBK) Q4 2024 earnings summary

Executive summary

• Net income for Q4 2024 was $5.0 million, down from $5.4 million in Q3 2024 and $5.2 million in Q4 2023.

• Diluted EPS was $0.33, compared to $0.36 in Q3 2024 and $0.34 in Q4 2023.

• Total assets stood at $2.37 billion, a 0.9% decrease sequentially but up 10.2% year-over-year.

• Gross loans reached $1.96 billion, up 1.3% sequentially and 10.8% year-over-year.

• Total deposits were $2.03 billion, down 1.8% from Q3 2024 but up 12.2% from Q4 2023.

Financial highlights

• Net interest income rose 2.6% sequentially and 4.3% year-over-year to $16.9 million.

• Net interest margin was 2.96%, up 1 bp from Q3 2024 but down 16 bps from Q4 2023.

• Provision for credit losses increased to $1.5 million from $448 thousand in Q3 2024 and $630 thousand in Q4 2023.

• Noninterest income grew 4.2% sequentially and 20.0% year-over-year, driven by higher service charges, loan servicing fees, and gain on sale of loans.

• Noninterest expense increased 3.2% sequentially and 9.6% year-over-year, mainly due to higher salaries, FDIC assessments, and other expenses.

Outlook and guidance

• Management noted ongoing uncertainty in financial markets, challenges in deposit growth, and elevated classified loans.

• The company is monitoring the impact of Los Angeles wildfires and stands ready to assist affected communities.