OP Bancorp Reports First Quarter 2026 Net Income of $7.2 Million, Diluted EPS of $0.48
LOS ANGELES--( BUSINESS WIRE)--OP Bancorp (the “Company”) (NASDAQ: OPBK), parent company of Open Bank, today reported:
($ in thousands, except per share data)
As of and For the Quarter
First Quarter Highlights
1Q2026
4Q2025
1Q2025
Comparisons reflect 1Q26 vs. 4Q25
Income Statement:
Income Statement
Net interest income
$
20,523
$
20,863
$
17,418
Noninterest income
4,032
3,418
4,816
Revenue
24,555
24,281
22,234
Provision for credit losses
412
463
736
Noninterest expense
14,233
14,293
13,814
Net income
$
7,234
$
7,038
$
5,560
Diluted Earnings Per Share (“EPS”)
$
0.48
$
0.47
$
0.37
Net interest margin (1)
3.19
%
3.25
%
3.01
%
Efficiency ratio (2)
57.97
58.87
62.13
Balance Sheet:
Balance Sheet
Average loans (3)
$
2,226,749
$
2,204,232
$
2,005,044
Average deposits
2,300,455
2,264,990
2,083,890
Credit Quality:
Credit Quality
Net (recoveries) charge-offs (1) to average gross loans
(0.01
)%
(0.03
)%
0.02
%
Allowance for credit losses on loans to gross loans
1.27
1.28
1.24
Selected Ratios:
Performance and Capital
Book value per share
$
15.62
$
15.31
$
14.09
Return on average assets ("ROAA") (1)
1.08
%
1.07
%
0.92
%
Return on average equity ("ROAE") (1)
12.56
12.53
10.73
Stockholders' equity to asset ratio
8.62
8.60
8.36
Common equity tier 1 capital (“CET1”)
10.82
10.93
10.97
(1)
Annualized.
(2)
Represents noninterest expense divided by the sum of net interest income and noninterest income.
(3)
Includes loans held-for-sale.
Sang K. Oh, President and Chief Executive Officer:
“We continued to deliver strong results that highlight the strength and resilience of our Company. Revenue grew steadily, supported by continued loan and deposit growth, along with higher noninterest income from increased gains on loan sales. Our disciplined expense management further enhanced performance, and overall credit quality remained sound and manageable with low net charge-offs. With a solid capital base, we are well-positioned for sustainable growth as we move into 2026,” said Sang K. Oh, President and Chief Executive Officer.
INCOME STATEMENT HIGHLIGHTS
Net Interest Income and Net Interest Margin
($ in thousands)
For the Three Months Ended
% Change 1Q2026 vs.
1Q2026
4Q2025
1Q2025
4Q2025
1Q2025
Interest Income
Interest income
$
38,537
$
39,282
$
34,859
(2
)%
11
%
Interest expense
18,014
18,419
17,441
(2
)
3
Net interest income
$
20,523
$
20,863
$
17,418
(2
)%
18
%
($ in thousands)
For the Three Months Ended
Average
Yield/Rate
Change
1Q2026 vs.
1Q2026
4Q2025
1Q2025
Interest
Income/
Expense
Average
Yield/Rate (1)
Interest
Income/
Expense
Average
Yield/Rate (1)
Interest
Income/
Expense
Average
Yield/Rate (1)
4Q2025
1Q2025
Interest-earning Assets:
Loans
$
34,879
6.33
%
$
35,921
6.48
%
$
31,689
6.39
%
(15) bps
(6) bps
Total interest-earning assets
38,537
6.00
39,282
6.11
34,859
6.04
(11) bps
(4) bps
Interest-bearing Liabilities:
Interest-bearing deposits
16,845
3.83
17,324
3.97
16,608
4.31
(14) bps
(48) bps
Total interest-bearing liabilities
18,014
3.88
18,419
3.99
17,441
4.31
(11) bps
(43) bps
Ratios:
Net interest income / interest rate spreads
20,523
2.12
20,863
2.12
17,418
1.73
— bps
39 bps
Net interest margin
3.19
3.25
3.01
(6) bps
18 bps
Total deposits / cost of deposits
16,845
2.97
17,324
3.03
16,608
3.23
(6) bps
(26) bps
Total funding liabilities / cost of funds
18,014
3.04
18,419
3.09
17,441
3.27
(5) bps
(23) bps
(1)
Annualized
($ in thousands)
For the Three Months Ended
Average Yield
Change 1Q2026 vs.
1Q2026
4Q2025
1Q2025
Interest
Income
Average
Yield (1)
Interest
Income
Average
Yield (1)
Interest
Income
Average
Yield (1)
4Q2025
1Q2025
Loan Yield Component:
Contractual interest rate
$
34,254
6.22
%
$
35,010
6.31
%
$
31,323
6.32
%
(9) bps
(10) bps
Accretion of SBA loan discount (2)
815
0.15
966
0.17
683
0.14
(2) bps
1 bps
Amortization of net deferred fees
127
0.02
(17
)
(0.00
)
(106
)
(0.02
)
2 bps
4 bps
Amortization of premium
(312
)
(0.06
)
(301
)
(0.05
)
(329
)
(0.07
)
(1) bps
1 bps
Amortization of premium - Home mortgage payoffs
(186
)
(0.03
)
(123
)
(0.02
)
(162
)
(0.03
)
(1) bps
— bps
Net interest recognized on nonaccrual loans
(94
)
(0.02
)
105
0.02
132
0.02
(4) bps
(4) bps
Prepayment penalty income and other fees (3)
275
0.05
281
0.05
148
0.03
— bps
2 bps
Yield on loans
$
34,879
6.33
%
$
35,921
6.48
%
$
31,689
6.39
%
(15) bps
(6) bps
(1)
Annualized.
(2)
Includes discount accretion from SBA loan payoffs of $370 thousand, $505 thousand and $193 thousand for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively.
(3)
Includes prepayment penalty income of $98 thousand, $145 thousand and $67 thousand for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively, from Commercial Real Estate (“CRE”) and SBA loans.
First Quarter 2026 vs. Fourth Quarter 2025
Net interest income declined by $340 thousand, or 2%, primarily due to lower loan yields and two fewer accrual days, partially offset by balance-sheet growth and a special dividend on FHLB stock. As a result, the net interest margin contracted by 6 basis point to 3.19%.
First Quarter 2026 vs. First Quarter 2025
Net interest income increased by $3.1 million, or 18%, driven primarily by balance-sheet growth and lower deposit rates. As a result, the net interest margin expanded by 18 basis points to 3.19%.
Provision for Credit Losses
($ in thousands)
For the Three Months Ended
$ Change 1Q2026 vs.
1Q2026
4Q2025
1Q2025
4Q2025
1Q2025
Provision for credit losses on loans
$
400
$
518
$
687
$
(118
)
$
(287
)
Reversal of credit losses on off-balance sheet exposure
12
(55
)
49
67
(37
)
Provision for credit losses
$
412
$
463
$
736
$
(51
)
$
(324
)
First Quarter 2026 vs. Fourth Quarter 2025
Provision for credit losses on loans decreased modestly by $118 thousand, primarily reflecting lower quantitative reserves driven by changes in portfolio conditions, partially offset by higher specific reserves related to increased nonaccrual CRE loans.
First Quarter 2026 vs. First Quarter 2025
Provision for credit losses on loans decreased by $287 thousand, primarily due to lower qualitative reserves resulting from shifts in portfolio characteristics, partially offset by the higher specific reserves associated with additional nonaccrual CRE loans.
Noninterest Income
($ in thousands)
For the Three Months Ended
% Change 1Q2026 vs.
1Q2026
4Q2025
1Q2025
4Q2025
1Q2025
Noninterest Income
Service charges on deposits
$
463
$
462
$
1,000
0
%
(54
)%
Loan servicing fees, net of amortization
722
650
1,007
11
(28
)
Gains on sale of loans
2,050
1,573
2,019
30
2
Other income
797
733
790
9
1
Total noninterest income
$
4,032
$
3,418
$
4,816
18
%
(16
)%
First Quarter 2026 vs. Fourth Quarter 2025
Noninterest income increased by $614 thousand, or 18%, primarily driven by higher gains on sale of loans.
First Quarter 2026 vs. First Quarter 2025
Noninterest income decreased by $784 thousand, or 16%, primarily due to lower service charges on deposits and reduced loan servicing fees.
Noninterest Expense
($ in thousands)
For the Three Months Ended
% Change 1Q2026 vs.
1Q2026
4Q2025
1Q2025
4Q2025
1Q2025
Noninterest Expense
Salaries and employee benefits
$
9,276
$
9,244
$
8,776
0
%
6
%
Occupancy and equipment
1,811
1,919
1,581
(6
)
15
Data processing and communication
411
591
296
(30
)
39
Professional fees
399
549
407
(27
)
(2
)
FDIC insurance and regulatory assessments
418
362
487
15
(14
)
Promotion and advertising
120
(9
)
156
NM
(23
)
Directors’ fees
144
148
180
(3
)
(20
)
Foundation donation and other contributions
725
707
556
3
30
Other expenses
929
782
1,375
19
(32
)
Total noninterest expense
$
14,233
$
14,293
$
13,814
0
%
3
%
NM — Not meaningful
First Quarter 2026 vs. Fourth Quarter 2025
Noninterest expense remained stable, with no meaningful change from the prior period.
First Quarter 2026 vs. First Quarter 2025
Noninterest expense increased by $419 thousand, or 3%, primarily due to higher salaries and employee benefits, and increased occupancy and equipment, partially offset by lower other expenses.
Income Tax Expense
First Quarter 2026 vs. Fourth Quarter 2025
Income tax expense increased by $189 thousand to $2.7 million, with the effective tax rate rising to 27.0% from 26.1%.
First Quarter 2026 vs. First Quarter 2025
Income tax expense increased by $552 thousand to $2.7 million, with the effective tax rate declining to 27.0% from 27.6%. The increase in income tax expense was primarily attributable to higher pre-tax income.
BALANCE SHEET HIGHLIGHTS
Loans
($ in thousands)
As of
% Change 1Q2026 vs.
1Q2026
4Q2025
1Q2025
4Q2025
1Q2025
CRE
$
1,173,366
$
1,132,223
$
1,023,278
4
%
15
%
SBA
284,182
264,523
258,778
7
10
C&I
219,367
221,270
202,250
(1
)
8
Home mortgage
556,952
574,300
559,543
(3
)
0
Consumer & other
392
1,353
36
(71
)
989
Gross loans
$
2,234,259
$
2,193,669
$
2,043,885
2
%
9
%
The following table presents loan originations and the corresponding weighted average contractual rates for the periods indicated:
($ in thousands)
For the Three Months Ended
% Change in
Amounts 1Q2026 vs.
1Q2026
4Q2025
1Q2025
4Q2025
1Q2025
Amount
Rate
Amount
Rate
Amount
Rate
CRE
$
83,333
6.48
%
$
75,750
6.60
%
$
69,889
7.03
%
10
%
19
%
SBA
33,528
7.99
26,748
8.52
18,206
8.81
25
84
C&I
8,489
7.00
6,870
6.57
506
8.18
24
1578
Home mortgage
7,059
6.03
7,020
6.45
74,004
6.42
1
(90
)
Consumer and other
—
—
—
—
40
6.05
—
(100
)
Gross loans (1)
$
132,409
6.87
%
$
116,388
7.03
%
$
162,645
6.95
%
14
%
(19
)%
(1)
Excludes changes in line utilization.
The following table summarizes the loan activity for the periods indicated:
($ in thousands)
For the Three Months Ended
1Q2026
4Q2025
1Q2025
Beginning Balance
$
2,193,669
$
2,151,217
$
1,956,852
Originations
132,409
116,388
162,645
Net change in line utilization
28,712
34,191
12,841
Purchases
—
1,014
12,028
Sales
(29,438
)
(28,549
)
(36,086
)
Payoffs & paydowns
(98,703
)
(82,365
)
(65,621
)
Other
7,610
1,773
1,226
Total
40,590
42,452
87,033
Ending balance
$
2,234,259
$
2,193,669
$
2,043,885
The following table presents the composition of gross loans by interest rate type accompanied with the weighted average contractual rates as of the periods indicated:
($ in thousands)
As of
1Q2026
4Q2025
1Q2025
%
Rate
%
Rate
%
Rate
Fixed rate
29
%
5.70
%
31
%
5.65
%
33
%
5.53
%
Hybrid rate
40
6.00
40
5.93
37
5.71
Variable rate
31
6.86
29
7.22
30
7.86
Gross loans
100
%
6.18
%
100
%
6.22
%
100
%
6.29
%
The following table presents the maturity of gross loans by interest rate type accompanied with the weighted average contractual rates for the periods indicated:
($ in thousands)
As of March 31, 2026
Within One Year
One Year Through
Five Years
After Five Years
Total
Amount
Rate
Amount
Rate
Amount
Rate
Amount
Rate
Fixed rate
$
183,123
5.72
%
$
282,353
6.26
%
$
182,259
4.82
%
$
647,735
5.70
%
Hybrid rate
—
—
189,039
4.94
712,525
6.28
901,564
6.00
Variable rate
108,892
7.00
197,491
6.78
378,577
6.87
684,960
6.86
Gross loans
$
292,015
6.20
%
$
668,883
6.04
%
$
1,273,361
6.25
%
$
2,234,259
6.18
%
Allowance for Credit Losses
The following table summarizes the activity in the allowance for credit losses for the periods presented:
($ in thousands)
As of and For the Three Months Ended
$ Change 1Q2026 vs.
1Q2026
4Q2025
1Q2025
4Q2025
1Q2025
Allowance for credit losses on loans, beginning
$
27,975
$
27,299
$
24,796
$
676
$
3,179
Provision for credit losses on loans
400
518
687
(118
)
(287
)
Gross charge-offs
(31
)
—
(130
)
(31
)
99
Gross recoveries
62
158
15
(96
)
47
Net recoveries (charge-offs)
31
158
(115
)
(127
)
146
Allowance for credit losses on loans, ending
$
28,406
$
27,975
$
25,368
$
431
$
3,038
Allowance for credit losses on off-balance sheet exposure, beginning
$
274
$
329
$
360
$
(55
)
$
(86
)
Provision for (reversal of) credit losses on off-balance sheet exposure
12
(55
)
49
67
(37
)
Allowance for credit losses on off-balance sheet exposure, ending
$
286
$
274
$
409
$
12
$
(123
)
Asset Quality
($ in thousands)
As of and For the Three Months Ended
% or Basis Point
Change 1Q2026 vs.
1Q2026
4Q2025
1Q2025
4Q2025
1Q2025
Accruing loans 30-89 days past due (1)
$
9,311
$
6,292
$
6,452
48
%
44
%
As a % of gross loans
0.42
%
0.29
%
0.32
%
13 bps
10 bps
Nonperforming loans (2)
$
18,297
$
14,071
$
10,412
30
%
76
%
Nonperforming assets (2)
18,297
14,071
11,649
30
57
Nonperforming loans to gross loans
0.82
%
0.64
%
0.51
%
18 bps
31 bps
Nonperforming assets to total assets
0.68
0.53
0.46
15 bps
22 bps
Criticized loans (3)(4)
$
33,235
$
32,060
$
23,055
3.7
%
44.2
%
Criticized loans to gross loans
1.49
%
1.46
%
1.13
%
3 bps
36 bps
Allowance for credit losses ratios:
As a % of gross loans
1.27
%
1.28
%
1.24
%
(1) bps
3 bps
As a % of nonperforming loans
155
199
244
(44
)%
(89
)%
As a % of nonperforming assets
155
199
218
(44
)
(63
)
As a % of criticized loans
85
87
110
(2
)
(25
)
Net (recoveries) charge-offs (5) to average gross loans
(0.01
)
(0.03
)
0.02
2 bps
(3) bps
(1)
Excludes the guaranteed portion of loans totaling $947 thousand and $3.2 million as of March 31, 2026 and December 31, 2025, respectively. There were no guaranteed portion as of March 31, 2025.
(2)
Excludes the guaranteed portion of loans totaling $30.8 million, $20.9 million and $14.3 million as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively.
(3)
Excludes the guaranteed portion of loans totaling $35.9 million, $27.3 million and $17.2 million as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively.
(4)
Consists of special mention, substandard, doubtful and loss categories.
(5)
Annualized.
Credit quality remained manageable during the period. The increase in nonperforming loans was primarily driven by a single isolated relationship, while overall credit performance continued to be stable. The allowance for credit losses on loans remained adequate at 1.27% of gross loans.
Deposits
($ in thousands)
As of
% Change 1Q2026 vs.
1Q2026
4Q2025
1Q2025
Amount
%
Amount
%
Amount
%
4Q2025
1Q2025
Noninterest-bearing deposits
$
546,550
24
%
$
520,865
23
%
$
552,797
25
%
5
%
(1
)%
Money market deposits and others
398,756
17
388,066
17
385,080
18
3
4
Time deposits
1,381,988
59
1,371,616
60
1,251,994
57
1
10
Total deposits
$
2,327,294
100
%
$
2,280,547
100
%
$
2,189,871
100
%
2
%
6
%
Estimated uninsured deposits
$
1,154,625
50
%
$
1,093,843
48
%
$
1,072,753
49
%
6
%
8
%
As of March 31, 2026 vs. December 31, 2025
Total deposits increased by $46.7 million or 2%, reflecting growth across all major deposit categories. The growth in noninterest-bearing deposits reflects both new account openings and higher balances from existing customers. The increase in money market deposits and others was primarily due to higher balances from existing customers. Time deposit growth was largely attributable to new retail customers opening accounts, partially offset by a decline in wholesale CD balances.
As of March 31, 2026 vs. March 31, 2025
Total deposits increased by $137.4 million or 6%, primarily driven by growth of $130.0 million in time deposits. The increase in time deposits was largely due to new customers opening CD accounts, reflecting a preference for higher-yielding products.
The following table sets forth the maturity of time deposits as of March 31, 2026:
As of March 31, 2026
($ in thousands)
Within
Three
Months
Three to
Six
Months
Six to
Nine
Months
Nine to
Twelve
Months
After
Twelve
Months
Total
Time deposits (greater than $250)
$
159,075
$
286,942
$
157,995
$
138,438
$
703
$
743,153
Time deposits ($250 or less)
303,647
159,114
99,555
74,733
1,786
638,835
Total time deposits
$
462,722
$
446,056
$
257,550
$
213,171
$
2,489
$
1,381,988
Weighted average rate
3.99
%
3.92
%
4.01
%
3.78
%
1.86
%
3.94
%
OTHER HIGHLIGHTS
Liquidity
The Company maintains ample access to liquidity, including highly liquid assets on our balance sheet and available unused borrowings from other financial institutions, including the Federal Reserve. The following table presents the Company's liquid assets and available borrowings as of dates presented:
($ in thousands)
1Q2026
4Q2025
1Q2025
Liquidity Assets:
Cash and cash equivalents
$
160,260
$
167,311
$
198,861
Available-for-sale ("AFS") debt securities
209,006
192,785
182,480
Liquid assets
$
369,266
$
360,096
$
381,341
Liquid assets to total assets
14
%
14
%
15
%
Available Borrowings:
Federal Home Loan Bank ("FHLB") —San Francisco
$
417,723
$
443,629
$
381,456
Federal Reserve Bank
204,140
208,859
217,563
Pacific Coast Bankers Bank
50,000
50,000
50,000
Zions Bank
25,000
25,000
25,000
First Horizon Bank
25,000
25,000
25,000
Total available borrowings
$
721,863
$
752,488
$
699,019
Total available borrowings to total assets
27
%
28
%
28
%
Liquid assets and available borrowings to total deposits
47
%
49
%
49
%
Capital and Capital Ratios
On April 23, 2026, the Company’s Board of Directors declared a quarterly cash dividend of $0.14 per share, representing a 17% increase from the prior quarterly dividend of $0.12 per share, on its common stock. The dividend is payable on or about May 21, 2026, to shareholders of record as of the close of business on May 7, 2026. The principal source of funds from which the Company pays dividends are the dividends received from the Bank. During the first quarter of 2026, no shares were repurchased under the repurchase program approved in August 2025.
OP Bancorp (1)
Open Bank
Well-
Capitalized
Requirement
Minimum
Capital Ratio+
Conservation
Buffer (2)
Risk-Based Capital Ratios (3):
Total capital
13.17
%
13.18
%
10.00
%
10.50
%
Tier 1 capital
10.82
11.93
8.00
8.50
CET1 capital
10.82
11.93
6.50
7.00
Tier 1 leverage
9.07
10.00
5.00
4.00
(1)
The capital requirements are only applicable to the Bank. The Company's ratios are included solely for comparison purpose.
(2)
An additional 2.5% capital conservation buffer above the minimum capital ratios are required in order to avoid limitations on distributions, including dividend payments and certain discretionary bonuses to executive officers. This buffer does not apply and is not included in the tier 1 leverage ratio.
(3)
The Company’s March 31, 2026 regulatory capital ratios and risk-weighted assets are preliminary.
OP Bancorp
% or Basis Point Change
1Q2026 vs.
1Q2026
4Q2025
1Q2025
4Q2025
1Q2025
Risk-Based Capital Ratios:
Total capital
13.17 %
(1)
13.31 %
12.22 %
(14) bps
95 bps
Tier 1 capital
10.82
(1)
10.93
10.97
(11) bps
(15) bps
CET1 capital
10.82
(1)
10.93
10.97
(11) bps
(15) bps
Tier 1 leverage
9.07
(1)
8.99
9.22
8 bps
(15) bps
Risk-weighted Assets ($ in thousands)
$ 2,245,233
(1)
$ 2,174,801
$ 2,034,969
3 %
10 %
(1)
The Company’s March 31, 2026 regulatory capital ratios and risk-weighted assets are preliminary.
ABOUT OP BANCORP
OP Bancorp, the holding company for Open Bank (the “Bank”), is a California corporation whose common stock is quoted on the Nasdaq Global Market under the ticker symbol, “OPBK.” The Bank operates general commercial banking business in Los Angeles, Orange, and Santa Clara Counties in California, the Dallas metropolitan area in Texas, and Clark County in Nevada, serving small- and medium-sized businesses, professionals, and local residents with a particular focus on Korean and other Asian communities. The Bank currently operates twelve full-service branch offices in Downtown Los Angeles, Los Angeles Fashion District, Los Angeles Koreatown, Cerritos, Gardena, Buena Park, Garden Grove and Santa Clara, California, Carrollton, Texas and Las Vegas, Nevada. The Bank also has five loan production offices in Pleasanton, California, Atlanta, Georgia, Aurora, Colorado, Lynnwood, Washington, and Fairfax, Virginia. The Bank commenced its operations on June 10, 2005 as First Standard Bank and changed its name to Open Bank in October 2010. Its headquarters is located at 1000 Wilshire Blvd., Suite 500, Los Angeles, California 90017. Phone 213.892.9999; www.myopenbank.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain matters set forth herein constitute “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder. All statements that are not statements of historical fact are forward-looking, and readers should not construe these statements of assurances of expected or intended results, or of promises that management will take a given course of action or pursue the currently expected strategies and objectives. Forward-looking statements in this report include comments about the Company’s current business plans and expectations regarding future operating results, as well as management’s statements about expected future events and economic developments, plans, strategies and objectives. All such statements reflect the current intentions, beliefs and expectations of the Company’s executive management based on currently available information and current and expected market conditions. Forward-looking statements can sometimes be identified by the use of forward-looking language, such as “likely result in,” “expects,” “anticipates,” “estimates,” “forecasts,” “projects,” “intends to,” or may include other similar words or phrases, such as “believes,” “plans,” “trend,” “objective,” “continues,” “remains,” or similar expressions, or future or conditional verbs, such as “will,” “would,” “should,” “could,” “may,” “might,” “can,” or similar verbs. Readers should not construe these statements as assurances of a given level of performance, or as promises that we will take the actions our management currently expects.
Our forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from those projected or could cause us to change plans or strategies or otherwise to take actions that differ from those we currently expect. The known risks and uncertainties that may have these effects are described in Part I, Item 1A, of our Annual Report on Form 10-K for the period ended December 31, 2025, and in our other filings with the Securities and Exchange Commission. You should read all forward-looking statements in the context of the foregoing and should not consider them to be reliable predictions of future events or as assurances of a particular level of performance or intended course of action. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.
CONSOLIDATED BALANCE SHEETS (unaudited)
($ in thousands)
As of
% Change
1Q2026 vs.
1Q2026
4Q2025
1Q2025
4Q2025
1Q2025
Assets
Cash and due from banks
$
12,842
$
10,911
$
12,575
18
%
2
%
Interest-bearing deposits with banks
147,418
156,400
186,286
(6
)
(21
)
Cash and cash equivalents
160,260
167,311
198,861
(4
)
(19
)
AFS debt securities, at fair value
209,006
192,785
182,480
8
15
Other investments
17,213
17,208
16,517
0
4
Loans held-for-sale
9,498
11,443
4,555
(17
)
109
CRE
1,173,366
1,132,223
1,023,278
4
15
SBA
284,182
264,523
258,778
7
10
C&I
219,367
221,270
202,250
(1
)
8
Home mortgage
556,952
574,300
559,543
(3
)
0
Consumer and other
392
1,353
36
(71
)
NM
Gross loans
2,234,259
2,193,669
2,043,885
2
9
Allowance for credit losses on loans
(28,406
)
(27,975
)
(25,368
)
2
12
Net loans
2,205,853
2,165,694
2,018,517
2
9
Premises and equipment, net
5,516
5,744
6,526
(4
)
(15
)
Accrued interest receivable
10,683
10,482
9,871
2
8
Servicing assets
9,834
10,057
10,848
(2
)
(9
)
Company owned life insurance
23,794
23,616
23,084
1
3
Deferred tax assets, net
12,417
12,438
13,183
0
(6
)
Other real estate owned ("OREO")
—
—
1,237
—
(100
)
Operating right-of-use assets
8,253
8,804
6,930
(6
)
19
Other assets
26,300
24,644
20,362
7
29
Total assets
$
2,698,627
$
2,650,226
$
2,512,971
2
%
7
%
Liabilities and Shareholders' Equity
Liabilities:
Noninterest-bearing
$
546,550
$
520,865
$
552,797
5
%
(1
)%
Money market and others
398,756
388,066
385,080
3
4
Time deposits greater than $250
743,153
683,956
610,783
9
22
Other time deposits
638,835
687,660
641,211
(7
)
0
Total deposits
2,327,294
2,280,547
2,189,871
2
6
FHLB advances
75,000
75,000
75,000
—
—
Subordinated note
24,607
24,586
—
0
NM
Accrued interest payable
15,181
14,595
14,994
4
1
Operating lease liabilities
10,508
11,175
9,193
(6
)
14
Other liabilities
13,326
16,430
13,824
(19
)
(4
)
Total liabilities
2,465,916
2,422,333
2,302,882
2
7
Shareholders' equity:
Common stock
73,018
73,018
73,697
—
(1
)
Additional paid-in capital
11,995
11,849
11,371
1
5
Retained earnings
158,730
153,283
138,563
4
15
Accumulated other comprehensive loss, net of tax
(11,032
)
(10,257
)
(13,542
)
8
(19
)
Total shareholders’ equity
232,711
227,893
210,089
2
11
Total liabilities and shareholders' equity
$
2,698,627
$
2,650,226
$
2,512,971
2
%
7
%
Shares of common stock outstanding, at period-end
14,894,239
14,889,540
14,914,261
0
%
0
%
Book value per share
$
15.62
$
15.31
$
14.09
2
%
11
%
Stockholders' equity to asset ratio
8.62
%
8.60
%
8.36
%
0
%
3
%
NM — Not meaningful
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
($ in thousands, except share and per share data)
For the Three Months Ended
% or Basis Point Change
1Q2026 vs.
1Q2026
4Q2025
1Q2025
4Q2025
1Q2025
Interest income
Interest and fees on loans
$
34,879
$
35,921
$
31,689
(3
)%
10
%
Interest on AFS debt securities
1,761
1,680
1,496
5
18
Other interest income
1,897
1,681
1,674
13
13
Total interest income
38,537
39,282
34,859
(2
)
11
Interest expense
Interest on deposits
16,845
17,324
16,608
(3
)
1
Interest on borrowings
679
817
833
(17
)
(18
)
Interest on subordinated note
490
278
—
76
100
Total interest expense
18,014
18,419
17,441
(2
)
3
Net interest income
20,523
20,863
17,418
(2
)
18
Provision for credit losses
412
463
736
(11
)
(44
)
Net interest income after provision for credit losses
20,111
20,400
16,682
(1
)
21
Noninterest income
Service charges on deposits
463
462
1,000
0
(54
)
Loan servicing fees, net of amortization
722
650
1,007
11
(28
)
Gains on sale of loans
2,050
1,573
2,019
30
2
Other income
797
733
790
9
1
Total noninterest income
4,032
3,418
4,816
18
(16
)
Noninterest expense
Salaries and employee benefits
9,276
9,244
8,776
0
6
Occupancy and equipment
1,811
1,919
1,581
(6
)
15
Data processing and communication
411
591
296
(30
)
39
Professional fees
399
549
407
(27
)
(2
)
FDIC insurance and regulatory assessments
418
362
487
15
(14
)
Promotion and advertising
120
(9
)
156
NM
(23
)
Directors’ fees
144
148
180
(3
)
(20
)
Foundation donation and other contributions
725
707
556
3
30
Other expenses
929
782
1,375
19
(32
)
Total noninterest expense
14,233
14,293
13,814
0
3
Income before income tax expense
9,910
9,525
7,684
4
29
Income tax expense
2,676
2,487
2,124
8
26
Net income
$
7,234
$
7,038
$
5,560
3
%
30
%
EPS - basic
0.49
0.47
0.37
2 bps
12 bps
EPS - diluted
0.48
0.47
0.37
1 bps
11 bps
Weighted average shares:
- Basic
14,890,929
14,886,681
14,857,234
0
%
0
%
- Diluted
14,930,173
14,915,677
14,857,234
0
0
ROAA (1)
1.08
%
1.07
%
0.92
%
1 bps
16 bps
ROAE (1)
12.56
12.53
10.73
3 bps
183 bps
Efficiency ratio (2)
57.97
58.87
62.13
(90) bps
(416) bps
NM — Not meaningful
(1)
Annualized.
(2)
Represents noninterest expense divided by the sum of net interest income and noninterest income
ASSET QUALITY
($ in thousands)
As of and For the Three Months Ended
1Q2026
4Q2025
1Q2025
Nonaccrual loans (1)(2)
$
18,297
$
14,071
$
10,412
Loans 90 days or more past due, accruing
—
—
—
Nonperforming loans
18,297
14,071
10,412
OREO
—
—
1,237
Nonperforming assets
$
18,297
$
14,071
$
11,649
Criticized loans (3) by risk categories:
Special mention loans
$
10,141
$
10,885
$
7,190
Classified loans (4)
23,094
21,175
15,865
Total criticized loans
$
33,235
$
32,060
$
23,055
Nonperforming loans to gross loans
0.82
%
0.64
%
0.51
%
Nonperforming assets to gross loans & OREO
0.82
0.64
0.57
Nonperforming assets to total assets
0.68
0.53
0.46
Classified loans to gross loans
1.03
0.97
0.78
Criticized loans to gross loans
1.49
1.46
1.13
Allowance for credit losses ratios:
As a % of gross loans
1.27
%
1.28
%
1.24
%
As a % of nonperforming loans
155
199
244
As a % of nonperforming assets
155
199
218
As a % of classified loans
123
132
160
As a % of criticized loans
85
87
110
Net (recoveries) charge-offs
$
(31
)
$
(158
)
$
115
Net (recoveries) charge-offs (5) to average gross loans
(0.01
)%
(0.03
)%
0.02
%
(1)
Excludes loans held-for-sale.
(2)
Excludes the guaranteed portion of loans totaling $30.8 million, $20.9 million and $14.3 million as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively.
(3)
Excludes the guaranteed portion of loans totaling $35.9 million, $27.3 million and $17.2 million as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively.
(4)
Consists of substandard, doubtful and loss categories.
(5)
Annualized.
($ in thousands)
1Q2026
4Q2025
1Q2025
Accruing delinquent loans 30-89 days past due by loan type (1) :
CRE
$
—
$
—
$
—
SBA
5,374
2,562
2,483
C&I
9
—
—
Home mortgage
3,911
557
3,969
Total 30-59 days
9,294
3,119
6,452
CRE
—
—
—
SBA
—
1,168
—
C&I
17
—
—
Home mortgage
—
2,005
—
Total 60-89 days
17
3,173
—
CRE
—
—
—
SBA
5,374
3,730
2,483
C&I
26
—
—
Home mortgage
3,911
2,562
3,969
Total accruing delinquent loans 30-89 days past due
$
9,311
$
6,292
$
6,452
Nonaccrual loans (2) by loan type:
CRE
$
7,307
$
3,424
$
1,937
SBA
10,597
9,840
6,371
C&I
393
218
—
Home mortgage
—
589
2,104
Total nonaccrual
$
18,297
$
14,071
$
10,412
Criticized loans (3) by loan type:
CRE
$
10,057
$
10,364
$
8,988
SBA
20,016
18,218
11,574
C&I
1,620
1,338
389
Home mortgage
1,542
2,140
2,104
Total criticized
$
33,235
$
32,060
$
23,055
(1)
Excludes the guaranteed portion of loans totaling $947 thousand and $3.2 million as of March 31, 2026 and December 31, 2025, respectively. There was no guaranteed portion as of March 31, 2025.
(2)
Excludes the guaranteed portion of loans that were in liquidation totaling $30.8 million, $20.9 million and $14.3 million as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively.
(3)
Excludes the guaranteed portion of loans that were in liquidation totaling $35.9 million, $27.3 million and $17.2 million as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively.
AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS
For the Three Months Ended
1Q2026
4Q2025
1Q2025
($ in thousands)
Average
Balance
Interest
Income/
Expense
Average
Yield/Rate (1)
Average
Balance
Interest
Income/
Expense
Average
Yield/Rate (1)
Average
Balance
Interest
Income/
Expense
Average
Yield/Rate (1)
Interest-earning assets:
Interest-bearing deposits in other banks
$
145,013
$
1,326
3.66
%
$
135,883
$
1,360
3.92
%
$
124,069
$
1,372
4.42
%
Other investments
17,232
571
13.24
17,186
321
7.46
16,469
302
7.33
AFS debt securities, at fair value
205,247
1,761
3.43
198,335
1,680
3.39
184,649
1,496
3.24
CRE
1,154,515
17,814
6.26
1,119,031
17,616
6.25
1,000,426
14,980
6.07
SBA
292,821
5,980
8.28
282,501
6,557
9.21
265,953
6,207
9.47
C&I
212,941
3,552
6.77
220,274
3,846
6.93
212,106
3,778
7.22
Home mortgage
565,185
7,508
5.31
581,824
7,889
5.42
526,326
6,718
5.11
Consumer and other
1,287
25
7.99
602
13
8.75
233
6
9.75
Loans (2)
2,226,749
34,879
6.33
2,204,232
35,921
6.48
2,005,044
31,689
6.39
Total interest-earning assets
2,594,241
38,537
6.00
2,555,636
39,282
6.11
2,330,231
34,859
6.04
Noninterest-earning assets
76,830
79,743
77,823
Total assets
$
2,671,071
$
2,635,379
$
2,408,054
Interest-bearing liabilities:
Money market deposits and others
$
393,242
$
3,009
3.10
%
$
389,958
$
3,241
3.30
%
$
353,804
$
3,085
3.54
%
Time deposits
1,390,491
13,836
4.04
1,342,337
14,083
4.16
1,208,032
13,523
4.54
Total interest-bearing deposits
1,783,733
16,845
3.83
1,732,295
17,324
3.97
1,561,836
16,608
4.31
Borrowings
75,834
679
3.63
86,905
817
3.73
78,944
833
4.28
Subordinated note
24,600
490
7.97
13,896
278
7.99
—
—
—
Total interest-bearing liabilities
1,884,167
18,014
3.88
1,833,096
18,419
3.99
1,640,780
17,441
4.31
Noninterest-bearing liabilities:
Noninterest-bearing deposits
516,722
532,695
522,054
Other noninterest-bearing liabilities
39,756
44,985
38,014
Total noninterest-bearing liabilities
556,478
577,680
560,068
Shareholders’ equity
230,426
224,603
207,206
Total liabilities and shareholders’ equity
$
2,671,071
$
2,635,379
$
2,408,054
Net interest income / interest rate spreads
$
20,523
2.12
%
$
20,863
2.12
%
$
17,418
1.73
%
Net interest margin
3.19
%
3.25
%
3.01
%
Cost of deposits & cost of funds:
Total deposits / cost of deposits
$
2,300,455
$
16,845
2.97
%
$
2,264,990
$
17,324
3.03
%
$
2,083,890
$
16,608
3.23
%
Total funding liabilities / cost of funds
2,400,889
18,014
3.04
2,365,791
18,419
3.09
2,162,834
17,441
3.27
(1)
Annualized.
(2)
Includes loans held-for-sale.