OP Bancorp (OPBK) Q4 2025 earnings summary

Executive summary

• Net income for Q4 2025 was $7.1 million, up 5% sequentially and 42% year-over-year, with diluted EPS of $0.47, reflecting higher net interest income and lower provision for credit losses.

• Average loans grew 3% sequentially and 13% year-over-year, while average deposits increased 2% sequentially and 12% year-over-year.

• Asset quality remained stable, with nonperforming loans at 0.64% of gross loans and allowance for credit losses at 1.28%.

• Capital position remained robust, with CET1 at 10.93% and total capital ratio at 13.32%.

Financial highlights

• Net interest income rose 3% sequentially and 23% year-over-year, driven by loan growth and lower deposit costs.

• Net interest margin was 3.25%, nearly unchanged sequentially but up 29 bps year-over-year.

• Noninterest income fell 17% sequentially and 23% year-over-year, mainly due to lower gains on sale of loans and service charges.

• Noninterest expense increased 5% sequentially and 9% year-over-year, primarily from higher salaries and employee benefits.

• Provision for credit losses dropped 61% sequentially and 70% year-over-year, reflecting improved economic outlook.

• ROA improved to 1.07% and ROE to 12.57% for the quarter.

Outlook and guidance

• Management remains focused on executing strategic priorities, supporting customers, and delivering long-term shareholder value.

• The company expects continued resilience, with a strong capital base and stable asset quality.