LOS ANGELES--(BUSINESS WIRE)--
Open Bank (OTCBB:OPBK) today announced a net income of $567 thousand for
the third quarter of 2012 and $5.4 million for the nine months ended
September 30, 2012, compared to $271 thousand for the third quarter of
2011 and $1.4 million for the nine months ended September 30, 2011. On
November 1, 2012, Open Bank opened its first branch in the downtown Los
Angeles fashion district.
Min Kim, President and Chief Executive Officer said, “We are very
pleased to announce another solid quarter of profit. Our new branch is
designed to offer our customers the increased convenience of a local
branch and is part of our overall strategy of focusing on building new
customer relationships through core deposits and will allow us to
continue to grow our business. We also continue to focus on improving
our asset quality and controlling costs. ”
Third Quarter 2012 Highlights:
-
Net income of $567 thousand for the three months ended September 30,
2012.
-
Net income of $5.4 million for the nine months ended September 30,
2012. Reversal of valuation allowance on DTA of $4 million included.
-
Net interest margin was 4.93% for the third quarter of 2012, compared
to 4.21% for the third quarter of 2011.
-
Demand deposits increased 38.83% to $46.5 million representing 32.34%
of total deposits of $143.7 million at September 30, 2012, from $33.5
million, 27.61% of total deposits of $121.3 million, at December 31,
2011.
-
Allowance for Loan Losses to Gross Loans was 3.79% at September 30,
2012.
-
The Total risk-based capital ratio, tier 1 capital ratio and tier 1
leverage ratio were 16.94%, 15.67% and 15.48%, respectively at
September 30, 2012.
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 and may include statements about the bank’s focus on
exploring new opportunities, building customer relationship through core
deposits, growing core deposits, and improving asset quality.
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 such as the ability of
the new branch to attract sufficient number of customers, deposits and
new business to become profitable. 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)
| | September 30, 2012 | | December 31, 2011 | | September 30, 2011 |
| | (Unaudited) | | (Audited) | | (Unaudited) |
| Assets | | | | | | |
| | | | | |
|
|
Cash and due from banks
| |
$
|
12,086
| |
$
|
19,595
| |
$
|
19,756
|
|
Federal fund sold/overnight investment
| | |
2,000
| | |
-
| | |
-
|
|
Investment securities
| | |
8,842
| | |
10,023
| | |
8,039
|
|
Loans held for sale
| | |
1,590
| | |
2,892
| | |
7,137
|
|
Loans receivable
| | |
133,837
| | |
103,688
| | |
97,933
|
|
Allowance for loan losses
| | |
4,104
| | |
4,939
| | |
4,583
|
|
Net loans
| | |
135,426
| | |
106,580
| | |
105,069
|
|
Bank premises and equipment, net
| | |
572
| | |
331
| | |
337
|
|
Accrued interest receivable
| | |
509
| | |
451
| | |
401
|
|
FHLB and Pacific Coast Bankers Bank Stock, at cost
| | |
813
| | |
732
| | |
732
|
|
Servicing assets
| | |
2,390
| | |
1,467
| | |
1,240
|
|
Net deferred taxes
| | |
4,000
| | |
-
| | |
-
|
|
Other assets
| |
|
3,103
| |
|
3,204
| |
|
701
|
|
Total Assets
| |
$
|
169,740
| |
$
|
142,383
| |
$
|
136,276
|
| | | | | |
|
| Liabilities and Shareholders' Equity | | | | | | |
| | | | | |
|
|
Noninterest bearing demand
| |
$
|
46,487
| |
$
|
33,484
| |
$
|
31,923
|
|
Savings
| | |
641
| | |
2,518
| | |
2,578
|
|
Money market and others
| | |
46,748
| | |
40,055
| | |
31,074
|
|
Time deposits of $100,000 or more
| | |
29,320
| | |
21,616
| | |
23,288
|
|
Other time deposits
| |
|
20,543
| |
|
23,608
| |
|
26,268
|
|
Total deposits
| | |
143,738
| | |
121,281
| | |
115,131
|
|
Other liabilities
| | |
948
| | |
1,683
| | |
1,888
|
|
Total liabilities
| | |
144,686
| | |
122,965
| | |
117,019
|
|
Total shareholders' equity
| |
|
25,054
| |
|
19,418
| |
|
19,257
|
|
Total Liabilities and Shareholders' Equity
| |
$
|
169,740
| |
$
|
142,383
| |
$
|
136,276
|
| Statement of Operations |
| |
| |
| |
| |
|
(Dollars in thousand, except per share data)
| | | | | | | | |
| | Three months ended | | Nine months ended |
| | September 30, 2012 | | September 30, 2011 | | September 30, 2012 | | September 30, 2011 |
|
Interest income
| |
$
|
1,873
| | |
$
|
1,621
| | |
$
|
5,272
| | |
$
|
4,940
| |
|
Interest expense
| |
|
167
|
| |
|
295
|
| |
|
569
|
|
|
|
931
|
|
|
Net interest income
| |
|
1,706
|
| |
|
1,326
|
| |
|
4,704
|
|
|
|
4,009
|
|
|
Provision for loan losses
| | |
700
| | | |
682
| | | |
1,773
| | | |
1,462
| |
|
Non interest income
| | |
1,786
| | | |
1,231
| | | |
4,488
| | | |
4,274
| |
|
Non interest expense
| |
|
2,225
|
| |
|
1,603
|
| |
|
6,009
|
|
|
|
5,312
|
|
|
Income before income taxes
| | |
567
| | | |
271
| | | |
1,410
| | | |
1,508
| |
|
Provision for income taxes
| |
|
-
|
| |
|
-
|
| |
|
(4,000
|
)
|
|
|
108
|
|
|
Net income (loss)
| |
$
|
567
|
| |
$
|
271
|
| |
$
|
5,410
|
|
|
$
|
1,401
|
|
| | | | | | | |
|
|
Book Value
| |
$
|
3.51
| | |
$
|
2.70
| | |
$
|
3.51
| | |
$
|
2.70
| |
|
Basic EPS
| |
$
|
0.08
| | |
$
|
0.04
| | |
$
|
0.76
| | |
$
|
0.21
| |
|
Diluted EPS
| |
$
|
0.06
| | |
$
|
0.03
| | |
$
|
0.58
| | |
$
|
0.18
| |
| | | | | | | |
|
| Key Ratios | | | | | | | | |
|
Return on average assets (ROA)*
| | |
1.48
|
%
| | |
0.08
|
%
| | |
4.96
|
%
| | |
1.47
|
%
|
|
ROA, excluding tax benefit *
| | |
1.48
|
%
| | |
0.08
|
%
| | |
1.29
|
%
| | |
1.47
|
%
|
|
Return on average equity (ROE) *
| | |
9.18
|
%
| | |
5.72
|
%
| | |
31.68
|
%
| | |
10.77
|
%
|
|
ROE, excluding tax benefit *
| | |
10.96
|
%
| | |
5.72
|
%
| | |
9.37
|
%
| | |
10.77
|
%
|
|
Net interest margin *
| | |
4.93
|
%
| | |
4.21
|
%
| | |
4.76
|
%
| | |
4.39
|
%
|
|
Efficiency ratio
| | |
79.70
|
%
| | |
62.70
|
%
| | |
80.99
|
%
| | |
64.13
|
%
|
| | | | | | | |
|
|
Tier 1 leverage
| | |
15.48
|
%
| | |
14.42
|
%
| | |
15.48
|
%
| | |
14.42
|
%
|
|
Tier 1 risk-based capital
| | |
15.67
|
%
| | |
17.43
|
%
| | |
15.67
|
%
| | |
17.43
|
%
|
|
Total risk-based capital
| | |
16.94
|
%
| | |
18.71
|
%
| | |
16.94
|
%
| | |
18.71
|
%
|
| Asset Quality |
|
| 9/30/2012 |
|
|
| 6/30/2012 |
|
|
| 3/31/2012 |
|
|
| 12/31/2011 |
|
|
| 9/30/2011 |
|
|
Loans 90 days or more past due, accruing
| | |
-
| | | |
-
| | | |
-
| | | |
-
| | | |
-
| |
|
Nonaccrual Loans
| |
| 1,850 |
| |
| 897 |
| |
| 5,078 |
| |
| 4,826 |
| |
| 2,613 |
|
|
Total Non-Performing Loans
| | |
1,850
| | | |
897
| | | |
5,078
| | | |
4,826
| | | |
2,613
| |
|
Other Real Estate Loans (OREO)
| | |
456
| | | |
-
| | | |
-
| | | |
-
| | | |
-
| |
|
Accruing Restructured Loans
| |
| 1,052 |
| |
| 1,071 |
| |
| 1,086 |
| |
| 2,061 |
| |
| 2,116 |
|
|
Total Non-Performing Assets
| | |
3,358
| | | |
1,968
| | | |
6,164
| | | |
6,887
| | | |
4,729
| |
| | | | | | | | | |
|
|
Non-Performing Loans/Total Loans
| | |
1.57
|
%
| | |
0.76
|
%
| | |
4.78
|
%
| | |
4.65
|
%
| | |
2.55
|
%
|
|
Non-Performing Assets/Total Assets
| | |
1.98
|
%
| | |
1.32
|
%
| | |
4.30
|
%
| | |
4.84
|
%
| | |
3.47
|
%
|
|
Allowance for Loan Losses/Gross Loans
| | |
3.79
|
%
| | |
3.47
|
%
| | |
4.31
|
%
| | |
4.76
|
%
| | |
4.47
|
%
|
|
Allowance for Loan Losses/Non-Performing Loans
| | |
241
|
%
| | |
458
|
%
| | |
90
|
%
| | |
102
|
%
| | |
175
|
%
|
| | | | | | | | | |
|
|
YTD Net Charge-offs
| |
$
|
2,263
| | |
$
|
1,908
| | |
$
|
724
| | |
$
|
1,344
| | |
$
|
1,001
| |
|
YTD Net Charge-offs to Average Loans *
| | |
7.60
|
%
| | |
6.51
|
%
| | |
2.56
|
%
| | |
1.22
|
%
| | |
1.23
|
%
|
| | | | | | | | | |
|
* Annualized
Open Bank
Christine Oh, 213.892.1192
Christine.oh@myopenbank.com
Source: Open Bank