LOS ANGELES--(BUSINESS WIRE)--
Open Bank (OTCBB:OPBK) today announced a net income of $773 thousand for
the second quarter of 2011 and $1.1 million for the first six months of
2011. This quarter marks the second consecutive quarters to record
profit in the history of Open Bank. Open Bank also announces significant
progress in reducing nonperforming loans from the bank’s loan portfolio.
Min Kim, President and Chief Executive Officer said, “We believe that we
have turned an important corner and are very pleased with our second
quarter results; our second consecutive quarterly profit. The strategies
we put in place last year have positioned us to record solid net
earnings through the second quarter of 2011 with significant
improvements in our net interest margin, as well as significant
increases in our core deposits.”
The Bank’s demand deposits were 25% of total deposits at June 30, 2011,
compared to 12% of total deposits at June 30, 2010. Asset quality has
also improved significantly, with Total Non-Performing Loans at June 30,
2011 down to $502 thousand from $3.65 Million at June 30, 2010.
Second Quarter 2011 Highlights
-
Net income of $773 thousand for the three months ended June 30, 2011.
-
Net income of $1.1 million for the six months ended June 30, 2011.
-
Non-interest income increased to $1.7 million for second quarter of
2011, compared to $165 thousand for second quarter of 2010.
-
Net interest margin improved significantly to 4.42% for the second
quarter of 2011, compared from 3.17% for second quarter of 2010.
-
Total deposits increased 10.2% to $114.2 million, with 50% growth in
demand deposits to $28.6 million from December 31, 2010.
-
Allowance for Loan Losses to Gross Loans was 4.37% at June 30, 2011.
-
Non-Performing Loans to Total Loans was 0.53% of gross loans at June
30, 2011, compared to 3.77% at June 30, 2010.
-
The Total risk-based capital ratio, tier 1 capital ratio and tier 1
leverage ratio were 19.41%, 18.13% and 14.54%, respectively at June
30, 2011.
-
Efficiency ratio improved to 66.37% for the second quarter of 2011,
compared to 108.57% for second quarter of 2010.
About Open Bank
Open Bank (the "Bank") is engaged in the general commercial banking
business in Los Angeles County and is focused on serving the banking
needs of small- and medium-sized businesses, professionals, and
residents with a particular emphasis on the Korean and other ethnic
minority communities. The Bank commenced its operations on June 10, 2005
as First Standard Bank and changed its name to Open Bank on September
20, 2010. Its headquarters are located at 1000 Wilshire Blvd., Suite 100
Los Angeles, California 90017. Phone 213.892.9999; www.myopenbank.comMember FDIC, Equal Housing Lender
Safe Harbor
This press release contains certain forward-looking information about
Open Bank that is intended to be covered by the safe harbor for
“forward-looking statements” provided by the Private Securities
Litigation Reform Act of 1995. All statements other than statements of
historical fact are forward-looking statements. These forward-looking
statements may include, but are not limited to, such words as
"believes," "expects," "anticipates," "intends," "plans," "estimates,"
"may," "will," "should," "could," "predicts," "potential," "continue,"
or the negative of such terms and other comparable terminology or
similar expressions. Forward-looking statements are not guarantees. Such
statements involve inherent risks and uncertainties, many of which are
difficult to predict and are generally beyond the control of Open Bank.
Open Bank cautions readers that a number of important factors could
cause actual results to differ materially from those expressed in, or
implied or projected by, such forward-looking statements. If any of
these risks or uncertainties materializes or if any of the assumptions
underlying such forward-looking statements proves to be incorrect, Open
Bank’s results could differ materially from those expressed in, or
implied or projected by such forward-looking statements. Open Bank
assumes no obligation to update such forward-looking statements, except
as required by law.
| Balance Sheet |
| |
| |
| |
|
(Dollars in thousand, except per share data)
| | June 30, 2011 | | December 31, 2010 | | June 30, 2010 |
| | (Unaudited) | | (Audited) | | (Unaudited) |
| Assets | | | | | | |
| | | | | |
|
|
Cash and due from banks
| |
$
|
23,358
| |
$
|
7,099
| |
$
|
19,803
|
|
Federal fund sold/overnight investment
| | |
4,300
| | |
3,500
| | |
2,000
|
|
Interest-bearing deposits in other banks
| | |
-
| | |
245
| | |
1,715
|
|
Investment securities
| | |
4,994
| | |
7,868
| | |
10,103
|
|
Loans held for sale
| | |
8,139
| | |
16,906
| | |
2,565
|
|
Loans receivable
| | |
95,076
| | |
91,578
| | |
90,246
|
|
Allowance for loan losses
| | |
4,158
| | |
4,121
| | |
3,940
|
|
Net loans
| | |
90,918
| | |
87,456
| | |
86,305
|
|
Bank premises and equipment, net
| | |
334
| | |
313
| | |
321
|
|
Accrued interest receivable
| | |
386
| | |
241
| | |
275
|
|
Other real estate owned
| | |
-
| | |
400
| | |
197
|
|
FHLB and Pacific Coast Bankers Bank Stock, at cost
| | |
737
| | |
785
| | |
835
|
|
Servicing assets
| | |
985
| | |
295
| | |
175
|
|
Other assets
| |
|
972
| |
|
386
| |
|
421
|
|
Total Assets
| |
$
|
135,124
| |
$
|
125,494
| |
$
|
124,715
|
| | | | | |
|
| Liabilities and Shareholders' Equity | | | | | | |
| | | | | |
|
|
Noninterest bearing demand
| |
$
|
28,616
| |
$
|
19,120
| |
$
|
13,114
|
|
Savings
| | |
2,377
| | |
2,471
| | |
2,184
|
|
Money market and others
| | |
28,101
| | |
8,558
| | |
9,083
|
|
Time deposits of $100,000 or more
| | |
24,440
| | |
28,513
| | |
52,125
|
|
Other time deposits
| |
|
30,664
| |
|
44,936
| |
|
36,357
|
|
Total deposits
| | |
114,198
| | |
103,598
| | |
112,863
|
|
Secured borrowings
| | |
-
| | |
7,852
| | |
-
|
|
Other liabilities
| | |
2,035
| | |
671
| | |
555
|
|
Total liabilities
| | |
116,233
| | |
112,120
| | |
113,419
|
|
Total shareholders' equity
| |
|
18,892
| |
|
13,374
| |
|
11,297
|
|
Total Liabilities and Shareholders' Equity
| |
$
|
135,124
| |
$
|
125,494
| |
$
|
124,715
|
| Statement of Operations |
| |
| |
| |
| |
|
(Dollars in thousand, except per share data)
| | | | | | | | |
| | Three months ended | | Six months ended |
| | June 30, 2011 | | June 30, 2010 | | June 30, 2011 | | June 30, 2010 |
|
Interest income
| |
$
|
1,668
| | |
$
|
1,427
| | |
$
|
3,319
| | |
$
|
3,031
| |
|
Interest expense
| |
|
311
|
| |
|
463
|
| |
|
636
|
| |
|
975
|
|
|
Net interest income
| |
|
1,357
|
| |
|
963
|
| |
|
2,683
|
| |
|
2,056
|
|
|
Provision for loan losses
| | |
198
| | | |
2,024
| | | |
780
| | | |
2,226
| |
|
Non interest income
| | |
1,730
| | | |
165
| | | |
3,043
| | | |
324
| |
|
Non interest expense
| |
|
2,049
|
| |
|
1,220
|
| |
|
3,709
|
| |
|
2,368
|
|
|
Income before income taxes
| | |
840
| | | |
(2,116
|
)
| | |
1,237
| | | |
(2,214
|
)
|
|
Provision for income taxes
| |
|
67
|
| |
|
1
|
| |
|
108
|
| |
|
1
|
|
|
Net income (loss)
| |
$
|
773
|
| |
$
|
(2,117
|
)
| |
$
|
1,130
|
| |
$
|
(2,215
|
)
|
| | | | | | | |
|
|
Book Value
| |
$
|
2.64
| | |
$
|
2.53
| | |
$
|
2.64
| | |
$
|
2.53
| |
|
Basic EPS
| |
$
|
0.11
| | |
$
|
(0.65
|
)
| |
$
|
0.17
| | |
$
|
(0.68
|
)
|
|
Diluted EPS
| |
$
|
0.09
| | |
$
|
(0.65
|
)
| |
$
|
0.14
| | |
$
|
(0.68
|
)
|
| | | | | | | |
|
| Key Ratios | | | | | | | | |
|
Return on average assets *
| | |
2.39
|
%
| | |
-6.70
|
%
| | |
1.80
|
%
| | |
-3.56
|
%
|
|
Return on average equity *
| | |
17.03
|
%
| | |
-89.10
|
%
| | |
13.68
|
%
| | |
-41.52
|
%
|
|
Net interest margin *
| | |
4.42
|
%
| | |
3.17
|
%
| | |
4.48
|
%
| | |
3.43
|
%
|
|
Efficiency ratio
| | |
66.37
|
%
| | |
108.11
|
%
| | |
64.77
|
%
| | |
99.51
|
%
|
| | | | | | | |
|
|
Tier I leverage
| | |
14.54
|
%
| | |
8.86
|
%
| | |
14.54
|
%
| | |
8.86
|
%
|
|
Tier I risk-based capital
| | |
18.13
|
%
| | |
11.49
|
%
| | |
18.13
|
%
| | |
11.49
|
%
|
|
Total risk-based capital
| | |
19.41
|
%
| | |
12.78
|
%
| | |
19.41
|
%
| | |
12.78
|
%
|
| | | | | | | |
|
| Asset Quality | |
| 6/30/2011 |
| |
| 3/31/2011 |
| |
| 12/31/2010 |
|
|
| 6/30/2010 |
|
|
Loans 90 days or more past due, accruing
| | |
-
| | | |
-
| | | |
-
| | | |
-
| |
|
Nonaccrual Loans
| |
|
502
|
| |
|
995
|
| |
|
2,159
|
| |
|
3,652
|
|
|
Total Non-Performing Loans
| | |
502
| | | |
995
| | | |
2,159
| | | |
3,652
| |
|
Other Real Estate Loans (OREO)
| | |
-
| | | |
-
| | | |
400
| | | |
197
| |
|
Accruing Restructured Loans
| |
|
2,238
|
| |
|
2,266
|
| |
|
2,634
|
| |
|
2,791
|
|
|
Total Non-Performing Assets
| | |
2,740
| | | |
3,261
| | | |
5,193
| | | |
6,640
| |
| | | | | | | |
|
|
Non-Performing Loans/Total Loans
| | |
0.53
|
%
| | |
0.97
|
%
| | |
2.47
|
%
| | |
3.87
|
%
|
|
Non-Performing Assets/Total Assets
| | |
2.03
|
%
| | |
2.49
|
%
| | |
4.14
|
%
| | |
5.32
|
%
|
|
Allowance for Loan Losses/Gross Loans
| | |
4.37
|
%
| | |
4.42
|
%
| | |
4.71
|
%
| | |
4.18
|
%
|
|
Allowance for Loan Losses/Non-Performing Loans
| | |
828
|
%
| | |
456
|
%
| | |
191
|
%
| | |
108
|
%
|
| | | | | | | |
|
|
YTD Net Charge-offs
| |
$
|
743
| | |
$
|
620
| | |
$
|
4,390
| | |
$
|
3,490
| |
|
YTD Net Charge-offs to Average Loans *
| | |
1.49
|
%
| | |
2.55
|
%
| | |
4.56
|
%
| | |
7.75
|
%
|
| | | | | | | |
|
|
* Annualized
| | | | | | | | |
Source: Open Bank
Contact:
Open Bank
Christine Oh, 213.892.1192
Christine.oh@myopenbank.com