OP Bancorp Reports Third Quarter 2026 Net Income of $7.8 Million, Diluted EPS of $0.52
LOS ANGELES--( BUSINESS WIRE)--OP Bancorp (the “Company”) (NASDAQ: OPBK), parent company of Open Bank, today reported:
($ in thousands, except per share data)
As of and For the Quarter
Third Quarter Highlights
3Q2026
2Q2026
3Q2025
Comparisons reflect 3Q26 vs. 2Q26
Income Statement:
Income Statement
Net interest income
$
22,207
$
20,068
$
20,346
Noninterest income
5,295
5,651
4,130
Revenue
27,502
25,719
24,476
Provision for (reversal of) credit losses
1,597
(149
)
1,175
Noninterest expense
15,512
14,826
13,629
Net income
$
7,763
$
7,978
$
6,703
Diluted Earnings Per Share (“EPS”)
$
0.52
$
0.53
$
0.45
Net interest margin (1)
3.27
%
3.08
%
3.26
%
Efficiency ratio (2)
56.40
57.64
55.68
Balance Sheet:
Balance Sheet
Average loans (3)
$
2,334,125
$
2,253,270
$
2,132,230
Average deposits
2,408,059
2,315,821
2,229,591
Credit Quality:
Credit Quality
Net charge-offs (1) to average gross loans
0.14
%
0.03
%
0.04
%
Allowance for credit losses on loans to gross loans
1.26
1.24
1.27
Selected Metrics:
Performance and Capital
Book value per share
$
16.07
$
15.99
$
14.88
Return on average assets ("ROAA") (1)
1.11
%
1.18
%
1.04
%
Return on average equity ("ROAE") (1)
12.94
13.61
12.36
Shareholders' equity to asset ratio
8.54
8.70
8.47
Tier 1 leverage ratio
9.09
9.21
9.01
(1)
(2)
(3)
Sang K. Oh, President and Chief Executive Officer:
“We delivered solid results in the third quarter, with net income of $7.8 million and diluted EPS of $0.52. Continued loan growth supported higher net interest income and further expansion in net interest margin. Book value per share continued to increase, reflecting growth in shareholders’ equity, while we maintained appropriate capital levels. As we enter the final quarter of 2026, we remain committed to sustainable growth, disciplined risk management and operating efficiency,” said Sang K. Oh, President and Chief Executive Officer.
INCOME STATEMENT HIGHLIGHTS
Net Interest Income and Net Interest Margin
($ in thousands)
For the Three Months Ended
% Change 3Q2026 vs.
3Q2026
2Q2026
3Q2025
2Q2026
3Q2025
Interest Income
Interest income
$
41,377
$
38,193
$
38,522
8
%
7
%
Interest expense
19,170
18,125
18,176
6
5
Net interest income
$
22,207
$
20,068
$
20,346
11
%
9
%
($ in thousands)
For the Three Months Ended
Average
Yield/Rate
Change 3Q2026
vs.
3Q2026
2Q2026
3Q2025
Interest
Income/
Expense
Average
Yield/Rate (1)
Interest
Income/
Expense
Average
Yield/Rate (1)
Interest
Income/
Expense
Average
Yield/Rate (1)
2Q2026
3Q2025
Interest-earning Assets:
Loans
$
37,627
6.41
%
$
35,731
6.36
%
$
35,001
6.52
%
5 bps
(11) bps
Total interest-earning assets
41,377
6.08
38,193
5.87
38,522
6.16
21 bps
(8) bps
Interest-bearing Liabilities:
Interest-bearing deposits
17,905
3.79
16,891
3.77
17,442
4.07
2 bps
(28) bps
Total interest-bearing liabilities
19,170
3.84
18,125
3.82
18,176
4.06
2 bps
(22) bps
Ratios:
Net interest income / interest rate spreads
22,207
2.24
20,068
2.05
20,346
2.10
19 bps
14 bps
Net interest margin
3.27
3.08
3.26
19 bps
1 bps
Total deposits / cost of deposits
17,905
2.95
16,891
2.93
17,442
3.10
2 bps
(15) bps
Total funding liabilities / cost of funds
19,170
3.03
18,125
3.00
18,176
3.13
3 bps
(10) bps
($ in thousands)
For the Three Months Ended
Average Yield
Change 3Q2026
vs.
3Q2026
2Q2026
3Q2025
Interest
Income
Average
Yield (1)
Interest
Income
Average
Yield (1)
Interest
Income
Average
Yield (1)
2Q2026
3Q2025
Loan Yield Component:
Contractual interest rate
$
36,973
6.30
%
$
35,335
6.29
%
$
34,263
6.39
%
1 bps
(9) bps
Recurring accretion / amortization
239
0.04
226
0.04
299
0.05
— bps
(1) bps
Nonrecurring (2)
415
0.07
170
0.03
439
0.08
4 bps
(1) bps
Yield on loans
$
37,627
6.41
%
$
35,731
6.36
%
$
35,001
6.52
%
5 bps
(11) bps
(1)
(2)
Third Quarter 2026 vs. Second Quarter 2026
Net interest income increased by $2.1 million, or 11%, primarily driven by continued loan growth and the normalization of Federal Reserve Bank account income following a prior-quarter accrual adjustment. These benefits were partially offset by higher interest expense resulting from growth in average interest-bearing deposit balances. As a result, net interest margin increased by 19 basis points to 3.27%.
Third Quarter 2026 vs. Third Quarter 2025
Net interest income increased by $1.9 million, or 9%, primarily driven by balance sheet growth and lower deposit rates. These favorable factors were partially offset by lower loan yields. As a result, the net interest margin increased by one basis point to 3.27%.
Provision for Credit Losses
($ in thousands)
For the Three Months Ended
$ Change 3Q2026 vs.
3Q2026
2Q2026
3Q2025
2Q2026
3Q2025
Provision for (reversal of) credit losses on loans
$
1,557
$
(131
)
$
1,206
$
1,688
$
351
Provision for (reversal of) credit losses on off-balance sheet exposure
40
(18
)
(31
)
58
71
Provision for (reversal of) credit losses
$
1,597
$
(149
)
$
1,175
$
1,746
$
422
Third Quarter 2026 vs. Second Quarter 2026
Provision for credit losses on loans increased by $1.7 million. The increase primarily reflected higher general reserve requirements associated with loan growth and changes in credit quality, including an increase in criticized loans. Higher specific reserves due to lower net collateral values of individually evaluated loans also contributed to the increase.
Third Quarter 2026 vs. Third Quarter 2025
Provision for credit losses on loans increased by $351 thousand. The increase primarily reflected higher specific reserves due to lower net collateral values of individually evaluated loans and higher general reserve requirements associated with loan growth, partially offset by lower qualitative reserve requirements.
Noninterest Income
($ in thousands)
For the Three Months Ended
% Change 3Q2026 vs.
3Q2026
2Q2026
3Q2025
2Q2026
3Q2025
Noninterest Income
Service charges on deposits
$
468
$
515
$
725
(9
)%
(35
)%
Loan servicing fees, net of amortization
980
974
724
1
35
Gains on sale of loans
3,277
3,370
2,037
(3
)
61
Other income
570
792
644
(28
)
(11
)
Total noninterest income
$
5,295
$
5,651
$
4,130
(6
)%
28
%
Third Quarter 2026 vs. Second Quarter 2026
Noninterest income decreased by $356 thousand, or 6%, primarily driven by lower other income.
Third Quarter 2026 vs. Third Quarter 2025
Noninterest income increased by $1.2 million, or 28%, primarily due to higher gains on sale of loans.
Noninterest Expense
($ in thousands)
For the Three Months Ended
% Change 3Q2026 vs.
3Q2026
2Q2026
3Q2025
2Q2026
3Q2025
Noninterest Expense
Salaries and employee benefits
$
9,452
$
9,733
$
8,892
(3
)%
6
%
Occupancy and equipment
1,827
1,901
1,676
(4
)
9
Data processing and communication
513
380
263
35
95
Professional fees
1,129
454
419
149
169
FDIC insurance and regulatory assessments
385
387
428
(1
)
(10
)
Promotion and advertising
224
104
126
115
78
Directors’ fees
155
164
151
(5
)
3
Foundation donation and other contributions
750
811
671
(8
)
12
Other expenses
1,077
892
1,003
21
7
Total noninterest expense
$
15,512
$
14,826
$
13,629
5
%
14
%
Third Quarter 2026 vs. Second Quarter 2026
Noninterest expense increased by $686 thousand, or 5%, primarily due to higher professional fees.
Third Quarter 2026 vs. Third Quarter 2025
Noninterest expense increased by $1.9 million, or 14%, primarily due to higher professional fees and salaries and employee benefits.
Income Tax Expense
Third Quarter 2026 vs. Second Quarter 2026
Income tax expense decreased by $434 thousand to $2.6 million, primarily due to lower pre-tax income and a lower effective tax rate. The effective tax rate decreased to 25.3% from 27.8%, primarily due to return-to-provision adjustments associated with the prior-year tax returns.
Third Quarter 2026 vs. Third Quarter 2025
Income tax expense decreased by $339 thousand to $2.6 million, primarily reflecting a lower effective tax rate, partially offset by higher pre-tax income. The effective tax rate decreased to 25.3% from 30.7%, mainly due to the absence of a one-time deferred tax asset revaluation recognized in the prior-year period and return-to-provision adjustments associated with the prior-year tax returns.
BALANCE SHEET HIGHLIGHTS
Loans
($ in thousands)
As of
% Change 3Q2026 vs.
3Q2026
2Q2026
3Q2025
2Q2026
3Q2025
CRE
$
1,199,046
$
1,190,117
$
1,092,808
1
%
10
%
SBA
302,201
278,554
256,211
8
18
C&I
186,444
221,623
214,419
(16
)
(13
)
Home mortgage
600,017
568,512
587,641
6
2
Consumer & other
121
255
138
(53
)
(12
)
Gross loans
$
2,287,829
$
2,259,061
$
2,151,217
1
%
6
%
The following table summarizes the loan activity for the periods indicated:
($ in thousands)
For the Three Months Ended
3Q2026
2Q2026
3Q2025
Beginning Balance
$
2,259,061
$
2,234,259
$
2,071,580
Originations
149,094
169,340
130,695
Net change in line utilization
(27,340
)
35,399
31,167
Purchases
19,593
5,426
8,930
Sales
(51,102
)
(51,907
)
(36,136
)
Payoffs & paydowns
(84,652
)
(123,664
)
(71,526
)
Other
23,175
(9,792
)
16,507
Total
28,768
24,802
79,637
Ending balance
$
2,287,829
$
2,259,061
$
2,151,217
As of September 30, 2026 vs. June 30, 2026
Gross loans increased by $28.8 million or 1%, primarily reflecting lower CRE payoffs, partially offset by lower line utilization in C&I loans.
As of September 30, 2026 vs. September 30, 2025
Gross loans increased by $136.6 million or 6%, primarily driven by growth in CRE and SBA loans from originations, partially offset by lower line utilization in C&I loans.
The following table presents loan originations and the corresponding weighted average contractual rates for the periods indicated:
($ in thousands)
For the Three Months Ended
% Change in
Amounts 3Q2026
vs.
3Q2026
2Q2026
3Q2025
2Q2026
3Q2025
Amount
Rate
Amount
Rate
Amount
Rate
CRE
$
51,654
6.30
%
$
92,042
6.78
%
$
98,799
6.36
%
(44
)%
(48
)%
SBA
29,611
7.96
32,403
7.94
15,051
8.72
(9
)
97
C&I
14,083
6.41
8,321
7.28
9,984
6.96
69
41
Home mortgage
53,746
6.09
36,574
5.94
6,861
6.69
47
683
Gross loans (1)
$
149,094
6.56
%
$
169,340
6.85
%
$
130,695
6.69
%
(12
)%
14
%
(1)
The following table presents the composition of gross loans by interest rate type accompanied by the weighted average contractual rates as of the periods indicated:
($ in thousands)
As of
3Q2026
2Q2026
3Q2025
%
Rate
%
Rate
%
Rate
Fixed rate
27
%
5.78
%
28
%
5.77
%
31
%
5.61
%
Hybrid rate
42
6.12
41
6.05
41
5.89
Variable rate
31
6.80
31
6.90
28
8.02
Gross loans
100
%
6.24
%
100
%
6.24
%
100
%
6.40
%
The following table presents the maturity of gross loans by interest rate type accompanied by the weighted average contractual rates for the periods indicated:
($ in thousands)
As of September 30, 2026
Within One Year
One Year Through
Five Years
After Five Years
Total
Amount
Rate
Amount
Rate
Amount
Rate
Amount
Rate
Fixed rate
$
150,633
5.49
%
$
276,723
6.57
%
$
189,074
4.86
%
$
616,430
5.78
%
Hybrid rate
—
—
208,068
5.71
762,455
6.23
970,523
6.12
Variable rate
112,676
7.14
179,254
6.82
408,946
6.70
700,876
6.80
Gross loans
$
263,309
6.20
%
$
664,045
6.37
%
$
1,360,475
6.18
%
$
2,287,829
6.24
%
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 3Q2026 vs.
3Q2026
2Q2026
3Q2025
2Q2026
3Q2025
Allowance for credit losses on loans, beginning
$
28,100
$
28,406
$
26,286
$
(306
)
$
1,814
Provision for (reversal of) credit losses on loans
1,557
(131
)
1,206
1,688
351
Gross charge-offs
(922
)
(224
)
(195
)
(698
)
(727
)
Gross recoveries
101
49
2
52
99
Net charge-offs
(821
)
(175
)
(193
)
(646
)
(628
)
Allowance for credit losses on loans, ending
$
28,836
$
28,100
$
27,299
$
736
$
1,537
Allowance for credit losses on off-balance sheet exposure, beginning
$
268
$
286
$
360
$
(18
)
$
(92
)
Provision for (reversal of) credit losses on off-balance sheet exposure
40
(18
)
(31
)
58
71
Allowance for credit losses on off-balance sheet exposure, ending
$
308
$
268
$
329
$
40
$
(21
)
Asset Quality
($ in thousands)
As of and For the Three Months Ended
% or Basis Point Change
3Q2026 vs.
3Q2026
2Q2026
3Q2025
2Q2026
3Q2025
Accruing loans 30-89 days past due
$
12,201
$
10,486
$
5,386
16
%
127
%
As a % of gross loans
0.53
%
0.46
%
0.25
%
7 bps
28 bps
Nonaccrual loans (1)(2)
$
18,032
$
16,372
$
12,312
10
%
46
%
Loans 90 days or more past due, accruing
—
892
—
(100
)
—
Nonperforming loans (2)
18,032
17,264
12,312
4
46
OREO
—
—
845
—
(100
)
Nonperforming assets (2)
$
18,032
$
17,264
$
13,157
4
%
37
%
Nonperforming loans to gross loans
0.79
%
0.76
%
0.57
%
3 bps
22 bps
Nonperforming assets to gross loans & OREO
0.79
0.76
0.61
3 bps
18 bps
Nonperforming assets to total assets
0.64
0.63
0.50
1 bps
14 bps
Criticized loans (3)(4) by risk categories:
Special mention loans
$
51,728
$
8,834
$
8,695
486
%
495
%
Classified loans (5)
25,828
24,594
19,380
5
33
Total criticized loans
$
77,556
$
33,428
$
28,075
132
%
176
%
Classified loans to gross loans
1.13
%
1.09
%
0.90
%
4 bps
23 bps
Criticized loans to gross loans
3.39
1.48
1.31
191 bps
208 bps
Allowance for credit losses ratios:
As a % of gross loans
1.26
%
1.24
%
1.27
%
2 bps
(1) bps
As a % of nonperforming loans
160
163
222
(3
)%
(62
)%
As a % of nonperforming assets
160
163
207
(3
)
(47
)
As a % of classified loans
112
114
141
(2
)
(29
)
As a % of criticized loans
37
84
97
(47
)
(60
)
Net charge-offs
$
821
$
175
$
193
NM
325
%
Net charge-offs (6) to average gross loans
0.14
0.03
0.04
11 bps
10 bps
Overall credit quality remained generally sound during the quarter. We believe the allowance for credit losses on loans remained adequate at 1.26% of gross loans as of September 30, 2026.
Deposits
($ in thousands)
As of
% Change 3Q2026
vs.
3Q2026
2Q2026
3Q2025
Amount
%
Amount
%
Amount
%
2Q2026
3Q2025
Noninterest-bearing deposits
$
539,257
22
%
$
552,300
23
%
$
543,972
24
%
(2
)%
(1
)%
Money market deposits and others
429,464
18
426,501
18
402,891
18
1
7
Time deposits
1,461,706
60
1,389,538
59
1,326,554
58
5
10
Total deposits
$
2,430,427
100
%
$
2,368,339
100
%
$
2,273,417
100
%
3
%
7
%
As of September 30, 2026 vs. June 30, 2026
Total deposits increased by $62.1 million or 3%, primarily driven by a $72.2 million increase in time deposits. The growth was primarily attributable to higher retail time deposit balances from existing customer relationships and increased wholesale funding balances. These increases were partially offset by declines in noninterest-bearing deposits.
As of September 30, 2026 vs. September 30, 2025
Total deposits increased by $157.0 million or 7%, primarily driven by a $135.2 million increase in time deposits. The increase reflected continued growth in retail time deposit balances from both new and existing customer relationships, as customers continued to favor higher-yielding deposit products. Deposit growth also benefited from higher balances in wholesale time deposits and money market accounts.
The following table sets forth the maturity of time deposits as of September 30, 2026:
As of September 30, 2026
($ 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)
$
341,630
$
280,753
$
101,700
$
92,911
$
1,596
$
818,590
Time deposits ($250 or less)
337,435
118,740
82,771
101,517
2,653
643,116
Total time deposits
$
679,065
$
399,493
$
184,471
$
194,428
$
4,249
$
1,461,706
Weighted average rate
3.95
%
3.89
%
3.96
%
4.12
%
3.46
%
3.96
%
CAPITAL
On October 22, 2026, the Company’s Board of Directors declared a quarterly cash dividend of $0.14 per share. The dividend is payable on or about November 19, 2026, to shareholders of record as of the close of business on November 5, 2026. The principal source of funds from which the Company pays dividends are the dividends received from the Bank. During the third quarter of 2026, no shares were repurchased under the repurchase program approved in August 2025.
OP Bancorp (1)
Open Bank (2)
Applicable
Requirement (2)
Community Bank Leverage Ratio (“CBLR”) (2)
Tier 1 leverage
9.09
10.01
8.00
Risk-Based Capital Ratios (2):
Total capital
13.52
%
13.56
%
N/A
Tier 1 capital
11.18
12.31
N/A
CET1 capital
11.18
12.31
N/A
(1)
(2)
OP Bancorp (1)
% or Basis Point Change 3Q2026 vs.
3Q2026
2Q2026
3Q2025
2Q2026
3Q2025
Risk-Based Capital Ratios:
Total capital
13.52
%
13.32
%
12.17
%
20 bps
135 bps
Tier 1 capital
11.18
10.98
10.92
20 bps
26 bps
CET1 capital
11.18
10.98
10.92
20 bps
26 bps
Tier 1 leverage
9.09
9.21
9.01
(12) bps
8 bps
Risk-weighted Assets ($ in thousands)
$
2,278,084
$
2,267,359
$
2,126,986
0
%
7
%
(1)
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 a 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 one loan production office in Bellevue, Washington. 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; Website: www.myopenbank.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain matters set forth herein constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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 II, Item 1A, of our Quarterly Report on Form 10-Q for the period ended June 30, 2026 under the heading “Risk Factors”, 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 except as required by applicable law.
CONSOLIDATED BALANCE SHEETS (unaudited)
($ in thousands, except share and per share data)
As of
% Change 3Q2026 vs.
3Q2026
2Q2026
3Q2025
2Q2026
3Q2025
Assets
Cash and due from banks
$
21,915
$
21,812
$
10,931
0
%
100
%
Interest-bearing deposits with other banks
220,984
153,239
155,817
44
42
Cash and cash equivalents
242,899
175,051
166,748
39
46
AFS debt securities, at fair value
187,146
202,506
200,760
(8
)
(7
)
Other investments
18,711
18,824
17,164
(1
)
9
Loans held-for-sale
6,160
21,305
6,480
(71
)
(5
)
CRE
1,199,046
1,190,117
1,092,808
1
10
SBA
302,201
278,554
256,211
8
18
C&I
186,444
221,623
214,419
(16
)
(13
)
Home mortgage
600,017
568,512
587,641
6
2
Consumer and other
121
255
138
(53
)
(12
)
Gross loans
2,287,829
2,259,061
2,151,217
1
6
Allowance for credit losses on loans
(28,836
)
(28,100
)
(27,299
)
3
6
Net loans
2,258,993
2,230,961
2,123,918
1
6
Premises and equipment, net
5,185
5,298
6,995
(2
)
(26
)
Accrued interest receivable
10,338
10,172
10,337
2
0
Servicing assets
10,619
10,280
10,429
3
2
Company owned life insurance
24,159
23,975
23,437
1
3
Deferred tax assets, net
15,046
12,456
12,099
21
24
Other real estate owned ("OREO")
—
—
845
—
(100
)
Operating right-of-use assets
7,733
7,732
9,347
0
(17
)
Other assets
22,446
25,746
25,655
(13
)
(13
)
Total assets
$
2,809,435
$
2,744,306
$
2,614,214
2
%
7
%
Liabilities and Shareholders' Equity
Liabilities:
Noninterest-bearing
$
539,257
$
552,300
$
543,972
(2
)%
(1
)%
Money market and others
429,464
426,501
402,891
1
7
Time deposits greater than $250
818,590
746,386
667,883
10
23
Other time deposits
643,116
643,152
658,671
0
(2
)
Total deposits
2,430,427
2,368,339
2,273,417
3
7
FHLB advances
75,000
75,000
75,000
—
—
Subordinated note
24,650
24,629
—
0
NM
Accrued interest payable
16,524
15,949
15,968
4
3
Operating lease liabilities
9,752
9,865
11,826
(1
)
(18
)
Other liabilities
13,135
11,881
16,504
11
(20
)
Total liabilities
2,569,488
2,505,663
2,392,715
3
7
Shareholders' equity:
Common stock
73,018
73,018
72,984
—
0
Additional paid-in capital
12,254
12,128
11,658
1
5
Retained earnings
170,296
164,624
148,031
3
15
Accumulated other comprehensive loss, net of tax
(15,621
)
(11,127
)
(11,174
)
40
40
Total shareholders’ equity
239,947
238,643
221,499
1
8
Total liabilities and shareholders' equity
$
2,809,435
$
2,744,306
$
2,614,214
2
%
7
%
Shares of common stock outstanding, at period-end
14,932,615
14,926,750
14,885,614
0
%
0
%
Book value per share
$
16.07
$
15.99
$
14.88
1
%
8
%
Shareholders' equity to asset ratio
8.54
%
8.70
%
8.47
%
(2
)%
1
%
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
($ in thousands, except share and per share data)
For the Three Months Ended
Change 3Q2026 vs.
3Q2026
2Q2026
3Q2025
2Q2026
3Q2025
Interest income
Interest and fees on loans
$
37,627
$
35,731
$
35,001
5
%
8
%
Interest on AFS debt securities
1,775
1,824
1,699
(3
)
4
Other interest income
1,975
638
1,822
210
8
Total interest income
41,377
38,193
38,522
8
7
Interest expense
Interest on deposits
17,905
16,891
17,442
6
3
Interest on borrowings
775
744
734
4
6
Interest on subordinated note
490
490
—
—
NM
Total interest expense
19,170
18,125
18,176
6
5
Net interest income
22,207
20,068
20,346
11
9
Provision for (reversal of) credit losses
1,597
(149
)
1,175
NM
36
Net interest income after provision for credit losses
20,610
20,217
19,171
2
8
Noninterest income
Service charges on deposits
468
515
725
(9
)
(35
)
Loan servicing fees, net of amortization
980
974
724
1
35
Gains on sale of loans
3,277
3,370
2,037
(3
)
61
Other income
570
792
644
(28
)
(11
)
Total noninterest income
5,295
5,651
4,130
(6
)
28
Noninterest expense
Salaries and employee benefits
9,452
9,733
8,892
(3
)
6
Occupancy and equipment
1,827
1,901
1,676
(4
)
9
Data processing and communication
513
380
263
35
95
Professional fees
1,129
454
419
149
169
FDIC insurance and regulatory assessments
385
387
428
(1
)
(10
)
Promotion and advertising
224
104
126
115
78
Directors’ fees
155
164
151
(5
)
3
Foundation donation and other contributions
750
811
671
(8
)
12
Other expenses
1,077
892
1,003
21
7
Total noninterest expense
15,512
14,826
13,629
5
14
Income before income tax expense
10,393
11,042
9,672
(6
)
7
Income tax expense
2,630
3,064
2,969
(14
)
(11
)
Net income
$
7,763
$
7,978
$
6,703
(3
)%
16
%
EPS - basic
$
0.52
$
0.54
$
0.45
$
(0.02
)
$
0.07
EPS - diluted
0.52
0.53
0.45
(0.01
)
0.07
Weighted average shares:
- Basic
14,932,615
14,903,398
14,885,614
0
%
0
%
- Diluted
14,956,018
14,942,130
14,919,474
0
0
ROAA (1)
1.11
%
1.18
%
1.04
%
(7) bps
7 bps
ROAE (1)
12.94
13.61
12.36
(67) bps
58 bps
Efficiency ratio (2)
56.40
57.64
55.68
(124) bps
72 bps
(1)
(2)
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
($ in thousands, except share and per share data)
For the Nine Months Ended
3Q2026
3Q2025
Change
Interest income
Interest and fees on loans
$
108,237
$
100,953
7
%
Interest on AFS debt securities
5,360
4,632
16
Other interest income
4,510
5,461
(17
)
Total interest income
118,107
111,046
6
Interest expense
Interest on deposits
51,641
51,525
0
Interest on borrowings
2,198
2,036
8
Interest on subordinated note
1,470
—
NM
Total interest expense
55,309
53,561
3
Net interest income
62,798
57,485
9
Provision for credit losses
1,860
3,117
(40
)
Net interest income after provision for credit losses
60,938
54,368
12
Noninterest income
Service charges on deposits
1,446
2,742
(47
)%
Loan servicing fees, net of amortization
2,676
2,631
2
Gains on sale of loans
8,697
5,497
58
Other income
2,159
2,044
6
Total noninterest income
14,978
12,914
16
Noninterest expense
Salaries and employee benefits
28,461
26,743
6
Occupancy and equipment
5,539
4,841
14
Data processing and communication
1,304
865
51
Professional fees
1,982
1,244
59
FDIC insurance and regulatory assessments
1,190
1,421
(16
)
Promotion and advertising
448
514
(13
)
Directors’ fees
463
529
(12
)
Foundation donation and other contributions
2,286
1,863
23
Other expenses
2,898
3,460
(16
)
Total noninterest expense
44,571
41,480
7
Income before income tax expense
31,345
25,802
21
Income tax expense
8,370
7,206
16
Net income
$
22,975
$
18,596
24
%
EPS - basic
$
1.54
$
1.25
$
0.29
EPS - diluted
1.54
1.25
0.29
Weighted average shares:
- Basic
14,909,133
14,867,626
0
%
- Diluted
14,941,352
14,894,309
0
%
ROAA (1)
1.13
%
0.99
%
14 bps
ROAE (1)
13.03
11.70
133 bps
Efficiency ratio (2)
57.31
58.92
(161) bps
(1)
(2)
ASSET QUALITY BY LOAN TYPE
($ in thousands)
3Q2026
2Q2026
3Q2025
Accruing delinquent loans 30-89 days past due by loan type:
CRE
$
6,150
$
723
$
—
SBA
—
3,173
1,390
C&I
—
26
617
Home mortgage
—
3,152
852
Total 30-59 days
6,150
7,074
2,859
CRE
1,521
—
—
SBA
1,574
972
378
C&I
—
77
—
Home mortgage
2,956
2,363
2,149
Total 60-89 days
6,051
3,412
2,527
CRE
7,671
723
—
SBA
1,574
4,145
1,768
C&I
—
103
617
Home mortgage
2,956
5,515
3,001
Total accruing delinquent loans 30-89 days past due
$
12,201
$
10,486
$
5,386
Nonaccrual loans (1) by loan type:
CRE
$
4,380
$
3,747
$
2,365
SBA
11,945
11,200
8,538
C&I
12
—
—
Home mortgage
1,695
1,425
1,409
Total nonaccrual
$
18,032
$
16,372
$
12,312
Criticized loans (2) by loan type:
CRE
$
41,950
$
7,217
$
9,345
SBA
22,886
21,859
14,925
C&I
9,497
1,390
864
Home mortgage
3,223
2,962
2,941
Total criticized
$
77,556
$
33,428
$
28,075
(1)
(2)
AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS
For the Three Months Ended
3Q2026
2Q2026
3Q2025
($ 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 with other banks
$
153,856
$
1,469
3.74
%
$
128,022
$
416
1.29
%
(2)
$
134,263
$
1,502
4.38
%
Other investments
18,803
506
10.76
18,531
222
4.79
17,112
320
7.48
AFS debt securities, at fair value
197,843
1,775
3.59
206,877
1,824
3.53
199,766
1,699
3.40
CRE
1,203,069
19,385
6.39
1,171,097
18,691
6.40
1,065,460
16,689
6.21
SBA
327,567
6,568
7.95
314,060
6,077
7.76
286,556
6,841
9.47
C&I
218,623
3,758
6.82
206,978
3,517
6.82
188,146
3,537
7.46
Home mortgage
584,220
7,903
5.41
560,842
7,437
5.30
591,939
7,931
5.36
Consumer and other
646
13
7.82
293
9
11.76
129
3
9.86
Loans (2)
2,334,125
37,627
6.41
2,253,270
35,731
6.36
2,132,230
35,001
6.52
Total interest-earning assets
2,704,627
41,377
6.08
2,606,700
38,193
5.87
2,483,371
38,522
6.16
Noninterest-earning assets
87,991
87,072
83,238
Total assets
$
2,792,618
$
2,693,772
$
2,566,609
Interest-bearing liabilities:
Money market deposits and others
$
453,649
$
3,713
3.25
%
$
404,975
$
3,174
3.14
%
$
425,248
$
3,793
3.54
%
Time deposits
1,420,357
14,192
3.96
1,392,628
13,717
3.95
1,275,417
13,649
4.25
Total interest-bearing deposits
1,874,006
17,905
3.79
1,797,603
16,891
3.77
1,700,665
17,442
4.07
Borrowings
81,359
775
3.78
81,816
744
3.65
76,250
734
3.82
Subordinated note
24,643
490
7.95
24,622
490
7.96
—
—
—
Total interest-bearing liabilities
1,980,008
19,170
3.84
1,904,041
18,125
3.82
1,776,915
18,176
4.06
Noninterest-bearing liabilities:
Noninterest-bearing deposits
534,053
518,218
528,926
Other noninterest-bearing liabilities
38,545
36,969
43,890
Total noninterest-bearing liabilities
572,598
555,187
572,816
Shareholders’ equity
240,012
234,544
216,878
Total liabilities and shareholders’ equity
$
2,792,618
$
2,693,772
$
2,566,609
Net interest income / interest rate spreads
$
22,207
2.24
%
$
20,068
2.05
%
$
20,346
2.10
%
Net interest margin
3.27
%
3.08
%
3.26
%
Cost of deposits & cost of funds:
Total deposits / cost of deposits
$
2,408,059
$
17,905
2.95
%
$
2,315,821
$
16,891
2.93
%
$
2,229,591
$
17,442
3.10
%
Total funding liabilities / cost of funds
2,514,061
19,170
3.03
2,422,259
18,125
3.00
2,305,841
18,176
3.13
For the Nine Months Ended
3Q2026
3Q2025
($ in thousands)
Average
Balance
Interest
Income/
Expense
Average
Yield/Rate (1)
Average
Balance
Interest
Income/
Expense
Average
Yield/Rate (1)
Interest-earning assets:
Interest-bearing deposits with other banks
$
142,329
$
3,212
2.98
%
(2)
$
135,439
$
4,522
4.40
%
Other investments
18,194
1,298
9.51
16,851
939
7.43
AFS debt securities, at fair value
203,296
5,360
3.52
188,258
4,632
3.28
CRE
1,176,405
55,890
6.35
1,031,854
47,681
6.18
SBA
311,610
18,624
7.99
278,621
19,666
9.44
C&I
212,765
10,828
6.80
198,512
10,982
7.40
Home mortgage
570,146
22,848
5.34
568,811
22,612
5.30
Consumer & other
849
47
7.36
146
12
10.85
Loans (3)
2,271,775
108,237
6.37
2,077,944
100,953
6.49
Total interest-earning assets
2,635,594
118,107
5.99
2,418,492
111,046
6.13
Noninterest-earning assets
84,005
81,505
Total assets
$
2,719,599
$
2,499,997
Interest-bearing liabilities:
Money market deposits and others
$
417,510
$
9,897
3.17
%
$
396,168
$
10,463
3.53
%
Time deposits
1,401,268
41,744
3.98
1,250,518
41,062
4.39
Total interest-bearing deposits
1,818,778
51,641
3.80
1,646,686
51,525
4.18
Borrowings
79,690
2,198
3.69
67,290
2,036
4.05
Subordinated note
24,622
1,470
7.96
—
—
—
Total interest-bearing liabilities
1,923,090
55,309
3.85
1,713,976
53,561
4.18
Noninterest-bearing liabilities:
Noninterest-bearing deposits
523,061
532,867
Other noninterest-bearing liabilities
38,419
41,198
Total noninterest-bearing liabilities
561,480
574,065
Shareholders’ equity
235,029
211,956
Total liabilities and shareholders’ equity
$
2,719,599
$
2,499,997
Net interest income / interest rate spreads
$
62,798
2.14
%
$
57,485
1.95
%
Net interest margin
3.18
%
3.17
%
Cost of deposits & cost of funds:
Total deposits / cost of deposits
$
2,341,839
$
51,641
2.95
%
$
2,179,553
$
51,525
3.16
%
Total funding liabilities / cost of funds
2,446,151
55,309
3.02
2,246,843
53,561
3.19
(1)
(2)
(3)