Financial Highlights
- Net income totaled $1.90 million for the fourth quarter of 2017, or
$0.13 per diluted common share.
- Income tax expense for the quarter reflects an additional $1.3
million, or $0.10 per diluted share, from the reassessment of deferred
tax assets due to the change in the federal tax rate.
- Net interest margin was 4.69% for the fourth quarter of 2017,
compared to 4.68% for the third quarter of 2017 and 4.41% for the
fourth quarter of 2016.
- Total assets were $901 million at December 31, 2017, up 2.5% from
$879 million at September 30, 2017, and up 18.4% from $761 million at
December 31, 2016.
- Net loans receivable were $739 million at December 31, 2017, up
1.6% from $727 million at September 30, 2017 and up 10.9% from $666
million at December 31, 2016.
- Total deposits were $773 million at December 31, 2017, up 2.5% from
$755 million at September 30, 2017 and up 16.9% from $662 million at
December 31, 2016.
- Noninterest bearing deposits at December 31, 2017 was $289 million
or 37.4% of total deposits.
- Nonperforming assets to total assets were 0.12% at December 31,
2017.
LOS ANGELES--(BUSINESS WIRE)--
OP Bancorp (the “Company”) (OTCQB: OPBK), the holding company of Open
Bank (the “Bank”), today reported that net income for the fourth quarter
of 2017 was $1.90 million, or $0.13 per diluted common share. This
compares with net income of $2.73 million, or $0.19 per diluted share,
for the third quarter of 2017, and net income of $2.26 million, or $0.16
per diluted share, for the fourth quarter of 2016.
On December 22, 2017, H.R.1, formerly known as the Tax Cuts and Jobs Act
(the “Tax Act”), was signed into law, which among other items reduces
the federal corporate tax rate to 21% from 34%, effective January 1,
2018. U.S. generally accepted accounting principles requires companies
to revalue certain tax-related assets as of the date of enactment of the
new legislation with resulting tax effects accounted for in the
reporting period of enactment. As a result, we recorded an adjustment of
$1.3 million to reduce the net deferred tax assets, which increased
income tax expense and reduced the earnings for the fourth quarter of
2017 by approximately $0.10 per diluted share.
“We are pleased announce another solid quarter with healthy assets and
earnings growth. Notwithstanding our tax expense of $1.3 million from
the adjustment to reduce the net deferred tax assets as a result of the
new tax act enacted in the fourth quarter, we earned net income of $1.90
million. Our income before taxes for the fourth quarter was $5.09
million, a 39% increase from the fourth quarter of 2016,” stated Min
Kim, President and Chief Executive Officer.
|
|
Quarter Financial Highlights
(in thousands, except per share data)
|
|
|
| |
| | | As of or for the Three Months Ended |
| | | December 31,
2017 |
|
| September 30,
2017 |
|
| December 31,
2016 |
| Income Statement Data: | | | | | | | | | |
|
Net interest income
| | |
$
|
9,701
| | | |
$
|
9,208
| | | |
$
|
7,879
| |
|
Provision for loan losses
| | | |
322
| | | | |
278
| | | | |
323
| |
|
Noninterest income
| | | |
2,278
| | | | |
2,255
| | | | |
2,533
| |
|
Noninterest expense
| | |
|
6,571
|
| | |
|
6,744
|
| | |
|
6,428
|
|
|
Income before taxes
| | | |
5,086
| | | | |
4,441
| | | | |
3,661
| |
|
Provision for income taxes
| | |
|
3,186
|
| | |
|
1,713
|
| | |
|
1,407
|
|
|
Net Income
| | |
$
|
1,900
|
| | |
$
|
2,728
|
| | |
$
|
2,254
|
|
| Balance Sheet Data: | | | | | | | | | |
|
Loans held for sale
| | |
$
|
15,739
| | | |
$
|
12,893
| | | |
$
|
1,646
| |
|
Gross loans, net of unearned income
| | | |
748,024
| | | | |
736,058
| | | | |
674,227
| |
|
Allowance for loan losses
| | | |
9,139
| | | | |
8,909
| | | | |
7,910
| |
|
Total assets
| | | |
900,999
| | | | |
879,087
| | | | |
761,250
| |
|
Deposits
| | | |
773,306
| | | | |
754,533
| | | | |
661,784
| |
|
Shareholders’ equity
| | | |
91,480
| | | | |
89,478
| | | | |
81,284
| |
| Credit Quality: | | | | | | | | | |
|
Nonperforming loans
| | |
$
|
1,037
| | | |
$
|
734
| | | |
$
|
576
| |
|
Nonperforming assets
| | | |
1,037
| | | | |
734
| | | | |
576
| |
| Performance Ratios: | | | | | | | | | |
|
Net interest margin
| | | |
4.69
|
%
| | | |
4.68
|
%
| | | |
4.41
|
%
|
|
Efficiency ratio
| | | |
54.86
|
%
| | | |
58.83
|
%
| | | |
61.73
|
%
|
|
Net charge-offs to average gross loans (annualized)
| | | |
0.05
|
%
| | | |
-0.04
|
%
| | | |
0.02
|
%
|
|
Nonperforming assets to gross loans plus OREO
| | | |
0.14
|
%
| | | |
0.10
|
%
| | | |
0.09
|
%
|
|
ALLL to nonperforming loans
| | | |
881
|
%
| | | |
1,214
|
%
| | | |
1,373
|
%
|
|
ALLL to gross loans
| | | |
1.22
|
%
| | | |
1.21
|
%
| | | |
1.17
|
%
|
| Capital Ratios: | | | | | | | | | |
|
Tangible common equity to tangible assets (1)
| | | |
10.15
|
%
| | | |
10.18
|
%
| | | |
10.68
|
%
|
|
Leverage ratio
| | | |
10.46
|
%
| | | |
10.77
|
%
| | | |
10.89
|
%
|
|
Common Equity Tier 1 ratio
| | | |
12.26
|
%
| | | |
12.15
|
%
| | | |
12.17
|
%
|
|
Tier 1 risk-based capital ratio
| | | |
12.26
|
%
| | | |
12.15
|
%
| | | |
12.17
|
%
|
|
Total risk-based capital ratio
| | | |
13.49
|
%
| | | |
13.37
|
%
| | | |
13.37
|
%
|
_____________________
(1) Represents a non-GAAP financial measure.
Results of Operations
Net interest income before loan loss provision for the fourth quarter of
2017 was $9.7 million, an increase of $493 thousand, or 5.4%, compared
to $9.2 million for the third quarter of 2017. The increase in net
interest income was primarily due to a 5.0% increase in average loans,
including loans held-for-sale, coupled with a 6 basis point increase in
average loan yields, offset by a 6 basis point increase in average cost
of funds. The average yields on loans increased to 5.63% for the fourth
quarter of 2017, compared to 5.57% for the third quarter of 2017, due to
a 25 basis point market rate increase by the Federal Reserve in December
2017.
The net interest margin for the fourth quarter of 2017 was 4.69%, a 1
basis point increase from 4.68% for the third quarter of 2017. The
increase in the net interest margin was primarily due to the Federal
Reserve market rate increase, which affected the repricing of our
earning assets to a greater extent than the repricing of our
liabilities, and an increase of noninterest-bearing funding sources. The
average balance of noninterest-bearing deposits increased $7.8 million,
or 3.0%, during the fourth quarter of 2017.
Net interest income before provision for loan losses for the fourth
quarter of 2017 increased $1.8 million, or 23.1%, compared to $7.9
million for the fourth quarter of 2016. The increase in net interest
income was primarily due to a 15.2% increase in average loans, including
loans held-for-sale, coupled with a 53 basis point increase in average
loan yields from 5.10% for the fourth quarter of 2016, offset by an 18
basis point increase in average cost of funds. The increase in the
average yields on loans was primarily due to cumulative market rate
increases by the Federal Reserve of 75 basis points through three rate
hikes of 25 basis points in each of March 2017, June 2017 and December
2017.
The net interest margin for the fourth quarter of 2017 increased 28
basis points from 4.41% for the fourth quarter of 2016. The increase in
the net interest margin was primarily due to the Federal Reserve market
rate increases during 2017 and an increase of noninterest-bearing
funding sources. The average balance of noninterest-bearing deposits
increased $32.4 million, or 13.7%, during 2017.
The following table shows the asset yields, liability costs, spreads and
margins.
|
|
| |
| | |
Three Months Ended
|
| | | December 31,
2017
|
|
| September 30,
2017
|
|
| December 31,
2016
|
| | | | | | | | |
|
|
Yield on loans (1)
| | |
5.63
|
%
| | |
5.57
|
%
| | |
5.10
|
%
|
|
Yield on interest-earning assets
| | |
5.35
|
%
| | |
5.29
|
%
| | |
4.91
|
%
|
|
Cost of interest-bearing liabilities
| | |
1.08
|
%
| | |
1.01
|
%
| | |
0.83
|
%
|
|
Cost of deposits
| | |
0.70
|
%
| | |
0.64
|
%
| | |
0.54
|
%
|
|
Cost of funds
| | |
0.71
|
%
| | |
0.65
|
%
| | |
0.53
|
%
|
|
Net interest spread
| | |
4.27
|
%
| | |
4.28
|
%
| | |
4.07
|
%
|
|
Net interest margin
| | |
4.69
|
%
| | |
4.68
|
%
| | |
4.41
|
%
|
______________________
(1) Includes loans held for sale
The provision for loan losses for the fourth quarter of 2017 was $322
thousand, compared to $278 thousand for the third quarter of 2017 and
$323 thousand for the fourth quarter of 2016.
Noninterest income for the fourth quarter of 2017 was $2.28 million, an
increase of $23 thousand, or 1.0%, from $2.26 million for the third
quarter of 2017, due to increases in gain on sale of SBA loans and
service charges on deposit accounts, offset by a decrease in loan
servicing income. Gain on sale of SBA loans increased $215 thousand to
$1.4 million for the fourth quarter of 2017 from $1.2 million for the
third quarter of 2017. We sold $18.6 million in SBA loans with an
average premium of 9.35% in the fourth quarter of 2017 compared to the
sale of $15.0 million in SBA loans with an average premium of 9.97% in
the third quarter of 2017. Service charges on deposit accounts increased
$61 thousand due to noninterest-bearing accounts and related activities
during the fourth quarter of 2017. Loan servicing income, net of
amortization, decreased $248 thousand, primarily due to an increase in
servicing assets amortization on SBA loan payoffs.
Noninterest income for the fourth quarter of 2017 decreased $255
thousand, or 10%, compared to $2.5 million for the fourth quarter of
2016, due to decreases in loan servicing income and gain on sale of SBA
loans, offset by an increase in service charges on deposit accounts.
Loan servicing income, net of amortization, decreased $369 thousand,
primarily due to an increase in servicing assets amortization on SBA
loan payoffs. Gain on sale of SBA loans decreased $59 thousand compared
to $1.4 million for the fourth quarter of 2016. We sold $21.4 million in
SBA loans with an average premium of 8.15% in the fourth quarter of
2016. Service charges on deposit accounts increased $102 thousand due to
noninterest-bearing accounts and related activities during 2017.
Noninterest expense for the fourth quarter of 2017 was $6.6 million, a
decrease of $172 thousand, or 2.6%, compared to $6.7 million for the
third quarter of 2017. The decrease was primarily due to $202 thousand
decrease in salary and employee benefits, $83 thousand decrease in
foundation donation and other contributions, partially offset by $85
thousand increase in other operations expenses.
Noninterest expense for the fourth quarter increased $143 thousand, or
2.2%, compared to $6.4 million for the fourth quarter of 2016. The
increase was primarily due to $124 thousand increase in occupancy, $114
thousand increase in business development, $99 thousand increase in
other operations expenses, partially offset by $174 thousand decrease in
salary and employee benefits.
Tax provision for the fourth quarter of 2017 was $3.2 million, compared
to $1.7 million for the third quarter of 2017 and $1.4 million for the
fourth quarter of 2016. The effective tax rate for the fourth quarter of
2017 was 62.6%, compared to 38.6% for the third quarter of 2017 and
38.4% for the fourth quarter of 2016. As noted previously, the provision
for the fourth quarter of 2017 includes the additional income tax
expense of $1.3 million resulting from the adjustment to reduce the net
deferred tax assets due to the Tax Act.
Balance Sheet
Total assets were $901 million at December 31, 2017, an increase of
$21.9 million, or 2.5%, from $879.1 million at September 30, 2017, and
an increase of $139.7 million, or 18.4%, from $761.3 million at December
31, 2016. Gross loans, net of unearned income, were $748.0 million at
December 31, 2017, an increase of $12.0 million, or 1.6%, from $736.1
million at September 30, 2017, and an increase of $73.8 million, or
10.9%, from $674.2 million at December 31, 2016.
New loan originations for the fourth quarter of 2017 totaled $57.1
million, including SBA loan originations of $18.0 million, compared to
$87.5 million, including SBA loan originations of $34.6 million for the
third quarter of 2017. New loan originations for the fourth quarter of
2016 were $82.3 million, including SBA loan originations of $29.5
million. Loan payoffs for the fourth quarter of 2017 were $22.9 million,
compared to $28.2 million for the third quarter of 2017, and $20.5
million for the fourth quarter of 2016.
Total deposits were $773.3 million at December 31, 2017, an increase of
$18.8 million, or 2.5%, from $754.5 million at September 30, 2017, and
an increase of $111.5 million, or 16.9%, from $661.8 million at December
31, 2016. Noninterest bearing deposits were $289.4 million at December
31, 2017, an increase of $256 thousand, or 0.1%, from $289.2 million at
September 30, 2017, and an increase of $42.0 million, or 17.0%, from
$247.4 million at December 31, 2016.
Noninterest bearing deposits accounted for 37.4% of total deposits at
December 31, 2017, compared to 38.3% at September 30, 2017 and 37.4% at
December 31, 2016.
|
|
|
|
|
|
|
|
|
|
| | | December 31,
2017
|
|
| September 30,
2017
|
|
| December 31,
2016
|
| | | | | | | | |
|
|
Noninterest-bearing deposits
| | |
37.4
|
%
| | |
38.3
|
%
| | |
37.4
|
%
|
|
Interest-bearing demand deposits
| | |
32.0
|
%
| | |
34.6
|
%
| | |
34.7
|
%
|
|
Savings
| | |
0.5
|
%
| | |
0.5
|
%
| | |
0.5
|
%
|
|
Time deposits over $250,000 | | |
14.1
|
%
| | |
12.8
|
%
| | |
11.9
|
%
|
|
Other time deposits
| | |
16.0
|
%
| | |
13.8
|
%
| | |
15.5
|
%
|
Total deposits
| | |
100.0
|
%
| | |
100.0
|
%
| | |
100.0
|
%
|
| | | | | | | | | | | |
|
There was $25 million in borrowing from the Federal Home Loan Bank
(“FHLB”) at December 31, 2017 and September 30, 2017 and $10 million at
December 31, 2016.
At December 31, 2017, the Company continued to exceed all regulatory
capital requirements to be classified as “well-capitalized,” as
summarized in the following table.
|
|
|
|
|
|
|
|
|
|
| | | December 31,
2017
|
|
| September 30,
2017
|
|
| December 31,
2016
|
| | | | | | | | |
|
|
Tier 1 leverage capital ratio
| | |
10.46
|
%
| | |
10.77
|
%
| | |
11.89
|
%
|
|
CET 1 capital ratio
| | |
12.26
|
%
| | |
12.15
|
%
| | |
12.17
|
%
|
|
Tier 1 risk-based capital ratio
| | |
12.26
|
%
| | |
12.15
|
%
| | |
12.17
|
%
|
|
Total risk-based capital ratio
| | |
13.49
|
%
| | |
13.37
|
%
| | |
13.37
|
%
|
| | | | | | | | | | | |
|
At December 31, 2017, the tangible common equity represented 10.15% of
tangible assets, compared to 10.18% at September 30, 2017 and 10.68% at
December 31, 2016. The tangible common equity to tangible assets ratio
is a non-GAAP financial measure that represents common equity less
goodwill and other net intangible assets divided by total assets less
goodwill and other net intangible assets. Management reviews the
tangible common equity to tangible assets ratio to evaluate the
Company’s capital levels.
Asset Quality
Nonperforming assets were $1.0 million, or 0.12% of total assets, at
December 31, 2017, $734 thousand, or 0.08% of total assets, at September
30, 2017 and $576 thousand, or 0.08% of total assets, at December 31,
2016. There was no other real estate owned (“OREO”) at December 31,
2017, September 30, 2017, or December 31, 2016.
Nonperforming loans to gross loans were 0.14% at December 31, 2017,
compared to 0.10% at September 30, 2017 and 0.09% at December 31, 2016.
Total classified loans were $2.1 million, or 0.28% of gross loans, at
December 31, 2017, compared to $2.1 million, or 0.29% of gross loans, at
September 30, 2017 and $2.3 million, or 0.34% of gross loans, at
December 31, 2016.
The allowance for loan losses was $9.1 million at December 31, 2017,
compared to $8.9 million at September 30, 2017 and $7.9 million at
December 31, 2016. The allowance for loan losses was 1.22% of gross
loans at December 31, 2017 and 1.21% at September 30, 2017 and 1.17% at
December 31, 2016. The allowance for loan losses was 881% of
nonperforming assets at December 31, 2017 and 1,214% at September 30,
2017 and 1,373% at December 31, 2016.
About OP Bancorp
OP Bancorp, the holding company for Open Bank, is a California
corporation whose common stock is traded on the OTCQB under the ticker
symbol, “OPBK.” Open Bank (the "Bank") is engaged in the general
commercial banking business in Los Angeles and Orange Counties and is
focused on serving the banking needs of small- and medium-sized
businesses, professionals, and residents with a particular emphasis on
Korean and other ethnic minority communities. The Bank currently
operates with seven full branch offices in Downtown Los Angeles, Los
Angeles Fashion District, Los Angeles Koreatown, Gardena and Buena Park.
The Bank also has three loan production offices in Seattle, Washington,
Dallas, Texas, and Atlanta, Georgia. 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.comMember FDIC, Equal Housing Lender
Forward-Looking Statements
This press release contains certain forward-looking information about OP
Bancorp. 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 OP Bancorp such as the ability
of our new branch to attract sufficient number of customers, deposits
and new business to become profitable. OP Bancorp 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, OP Bancorp’s results
could differ materially from those expressed in, or implied or projected
by such forward-looking statements. OP Bancorp assumes no obligation to
update such forward-looking statements, except as required by law.
|
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
| Balance Sheet | | | | | | | | | | | | | | | | | | | | | | | | |
|
(Dollars in thousand, except per share data)
| | | December 31, 2017 | | | September 30, 2017 | | | $ change | | | % change | | | December 31, 2016 | | | $ change | | | % change | | | |
| | | (Unaudited) | | | (Unaudited) | | | | | | | | | (Audited) | | | | | | | | | |
| Assets | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
Cash and due from banks
| | |
$
|
63,250
| | | |
$
|
53,961
| | | |
$
|
9,289
| | | | |
17.2
|
%
| | |
$
|
20,126
| | | |
$
|
43,124
| | | | |
214.3
|
%
| | | |
|
Investment securities
| | | |
41,472
| | | | |
43,578
| | | | |
(2,106
|
)
| | | |
-4.8
|
%
| | | |
35,463
| | | | |
6,009
| | | | |
16.9
|
%
| | | |
|
Loans held for sale
| | | |
15,739
| | | | |
12,893
| | | | |
2,846
| | | | |
22.1
|
%
| | | |
1,646
| | | | |
14,093
| | | | |
856.2
|
%
| | | |
|
Real Estate Loans
| | | |
420,760
| | | | |
405,453
| | | | |
15,307
| | | | |
3.8
|
%
| | | |
362,585
| | | | |
58,175
| | | | |
16.0
|
%
| | | |
|
SBA Loans
| | | |
115,559
| | | | |
116,681
| | | | |
(1,122
|
)
| | | |
-1.0
|
%
| | | |
104,286
| | | | |
11,273
| | | | |
10.8
|
%
| | | |
|
C & I Loans
| | | |
103,682
| | | | |
107,476
| | | | |
(3,794
|
)
| | | |
-3.5
|
%
| | | |
97,660
| | | | |
6,022
| | | | |
6.2
|
%
| | | |
|
Home Mortgage Loans
| | | |
104,068
| | | | |
102,283
| | | | |
1,785
| | | | |
1.7
|
%
| | | |
104,810
| | | | |
(742
|
)
| | | |
-0.7
|
%
| | | |
|
Consumer & Other Loans
| | |
|
3,956
|
| | |
|
4,165
|
| | |
|
(209
|
)
| | |
|
-5.0
|
%
| | |
|
4,887
|
| | |
|
(931
|
)
| | |
|
-19.1
|
%
| | | |
|
Gross loans, net of unearned income
| | | |
748,024
| | | | |
736,058
| | | | |
11,966
| | | | |
1.6
|
%
| | | |
674,227
| | | | |
73,797
| | | | |
10.9
|
%
| | | |
|
Allowance for loan losses
| | | |
(9,139
|
)
| | | |
(8,909
|
)
| | | |
(230
|
)
| | | |
-2.6
|
%
| | | |
(7,910
|
)
| | | |
(1,229
|
)
| | | |
-15.5
|
%
| | | |
|
Net loans receivable
| | | |
738,885
| | | | |
727,149
| | | | |
11,736
| | | | |
1.6
|
%
| | | |
666,317
| | | | |
72,568
| | | | |
10.9
|
%
| | | |
|
Premises and equipment, net
| | | |
4,481
| | | | |
4,442
| | | | |
39
| | | | |
0.9
|
%
| | | |
5,067
| | | | |
(586
|
)
| | | |
-11.6
|
%
| | | |
|
Accrued interest receivable
| | | |
2,463
| | | | |
2,182
| | | | |
281
| | | | |
12.9
|
%
| | | |
2,001
| | | | |
462
| | | | |
23.1
|
%
| | | |
|
FHLB and Pacific Coast Bankers Bank Stock, at cost
| | | |
4,287
| | | | |
4,287
| | | | |
0
| | | | |
0.0
|
%
| | | |
3,438
| | | | |
849
| | | | |
24.7
|
%
| | | |
|
Servicing assets
| | | |
6,771
| | | | |
6,957
| | | | |
(186
|
)
| | | |
-2.7
|
%
| | | |
6,783
| | | | |
(12
|
)
| | | |
-0.2
|
%
| | | |
|
Company owned life insurance
| | | |
11,090
| | | | |
11,012
| | | | |
78
| | | | |
0.7
|
%
| | | |
10,770
| | | | |
320
| | | | |
3.0
|
%
| | | |
|
Deferred tax assets
| | | |
3,383
| | | | |
4,214
| | | | |
(831
|
)
| | | |
-19.7
|
%
| | | |
3,276
| | | | |
107
| | | | |
3.3
|
%
| | | |
|
Other assets
| | |
|
9,177
|
| | |
|
8,412
|
| | |
|
765
|
| | |
|
9.1
|
%
| | |
|
6,362
|
| | |
|
2,815
|
| | |
|
44.2
|
%
| | | |
|
Total assets
| | |
$
|
900,999
|
| | |
$
|
879,087
|
| | |
$
|
21,912
|
| | |
|
2.5
|
%
| | |
$
|
761,250
|
| | |
$
|
139,749
|
| | |
|
18.4
|
%
| | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
| Liabilities and Shareholders' Equity | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
Noninterest bearing deposits
| | |
$
|
289,410
| | | |
$
|
289,154
| | | |
$
|
256
| | | | |
0.1
|
%
| | |
$
|
247,376
| | | |
$
|
42,034
| | | | |
17.0
|
%
| | | |
|
Savings
| | | |
3,838
| | | | |
3,809
| | | | |
29
| | | | |
0.8
|
%
| | | |
3,207
| | | | |
631
| | | | |
19.7
|
%
| | | |
|
Money market and others
| | | |
247,324
| | | | |
260,930
| | | | |
(13,606
|
)
| | | |
-5.2
|
%
| | | |
229,566
| | | | |
17,758
| | | | |
7.7
|
%
| | | |
|
Time deposits over $250,000 | | | |
108,952
| | | | |
96,641
| | | | |
12,311
| | | | |
12.7
|
%
| | | |
79,024
| | | | |
29,928
| | | | |
37.9
|
%
| | | |
|
Other time deposits
| | |
|
123,782
|
| | |
|
103,999
|
| | |
|
19,783
|
| | |
|
19.0
|
%
| | |
|
102,611
|
| | |
|
21,171
|
| | |
|
20.6
|
%
| | | |
|
Total deposits
| | | |
773,306
| | | | |
754,533
| | | | |
18,773
| | | | |
2.5
|
%
| | | |
661,784
| | | | |
111,522
| | | | |
16.9
|
%
| | | |
|
Other borrowings
| | | |
25,000
| | | | |
25,000
| | | | |
0
| | | | |
0.0
|
%
| | | |
10,000
| | | | |
15,000
| | | | |
150.0
|
%
| | | |
|
Other liabilities
| | |
|
11,213
|
| | |
|
10,076
|
| | |
|
1,137
|
| | |
|
11.3
|
%
| | |
|
8,182
|
| | |
|
3,031
|
| | |
|
37.0
|
%
| | | |
|
Total liabilities
| | | |
809,519
| | | | |
789,609
| | | | |
19,910
| | | | |
2.5
|
%
| | | |
679,966
| | | | |
129,553
| | | | |
19.1
|
%
| | | |
|
Total shareholders' equity
| | |
|
91,480
|
| | |
|
89,478
|
| | |
|
2,002
|
| | |
|
2.2
|
%
| | |
|
81,284
|
| | |
|
10,196
|
| | |
|
12.5
|
%
| | | |
|
Total Liabilities and Shareholders' Equity
| | |
$
|
900,999
|
| | |
$
|
879,087
|
| | |
$
|
21,912
|
| | |
|
2.5
|
%
| | |
$
|
761,250
|
| | |
$
|
139,749
|
| | |
|
18.4
|
%
| | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
| Statement of Operations | | | | | | | | | | | | | | | | | | | | | | | | |
|
(Dollars in thousand, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Year Ended |
| | | December 31, 2017 | | | September 30, 2017 | | | % change | | | December 31, 2016 | | | % change | | | December 31, 2017 | | | December 31, 2016 | | | % change |
|
Interest income
| | |
$
|
11,077
| | | |
$
|
10,419
| | | | |
6.3
|
%
| | |
$
|
8,766
| | | | |
26.4
|
%
| | |
$
|
40,283
| | | |
$
|
31,701
| | | |
27.1
|
%
|
|
Interest expense
| | |
|
1,376
|
| | |
|
1,211
|
| | |
|
13.6
|
%
| | |
|
887
|
| | |
|
55.1
|
%
| | |
|
4,573
|
| | |
|
3,371
|
| | |
35.7
|
%
|
|
Net interest income
| | | |
9,701
| | | | |
9,208
| | | | |
5.4
|
%
| | | |
7,879
| | | | |
23.1
|
%
| | | |
35,710
| | | | |
28,330
| | | |
26.1
|
%
|
|
Provision for loan losses
| | | |
322
| | | | |
278
| | | | |
15.8
|
%
| | | |
323
| | | | |
-0.3
|
%
| | | |
1,311
| | | | |
1,682
| | | |
-22.1
|
%
|
|
Non interest income
| | | |
2,278
| | | | |
2,255
| | | | |
1.0
|
%
| | | |
2,533
| | | | |
-10.1
|
%
| | | |
8,986
| | | | |
9,007
| | | |
-0.2
|
%
|
|
Non interest expense
| | |
|
6,571
|
| | |
|
6,744
|
| | |
|
-2.6
|
%
| | |
|
6,428
|
| | |
|
2.2
|
%
| | |
|
26,257
|
| | |
|
23,334
|
| | |
12.5
|
%
|
|
Income before income taxes
| | | |
5,086
| | | | |
4,441
| | | | |
14.5
|
%
| | | |
3,661
| | | | |
38.9
|
%
| | | |
17,128
| | | | |
12,321
| | | |
39.0
|
%
|
|
Provision for income taxes
| | |
|
3,186
|
| | |
|
1,713
|
| | |
|
86.0
|
%
| | |
|
1,407
|
| | |
|
126.4
|
%
| | |
|
7,892
|
| | |
|
4,894
|
| | |
61.3
|
%
|
|
Net income (loss)
| | |
$
|
1,900
|
| | |
$
|
2,728
|
| | |
|
-30.4
|
%
| | |
$
|
2,254
|
| | |
|
-15.7
|
%
| | |
$
|
9,236
|
| | |
$
|
7,427
|
| | |
24.4
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
Book Value
| | |
$
|
6.94
| | | |
$
|
6.80
| | | | |
2.0
|
%
| | |
$
|
6.30
| | | | |
10.0
|
%
| | |
$
|
6.94
| | | |
$
|
6.30
| | | |
10.0
|
%
|
|
Basic EPS
| | |
$
|
0.14
| | | |
$
|
0.20
| | | | |
-30.4
|
%
| | |
$
|
0.17
| | | | |
-16.4
|
%
| | |
$
|
0.68
| | | |
$
|
0.55
| | | |
23.6
|
%
|
|
Diluted EPS
| | |
$
|
0.13
| | | |
$
|
0.19
| | | | |
-30.6
|
%
| | |
$
|
0.16
| | | | |
-16.8
|
%
| | |
$
|
0.66
| | | |
$
|
0.53
| | | |
23.2
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
Shares of common stock outstanding
| | | |
13,190,527
| | | | |
13,162,732
| | | | |
0.2
|
%
| | | |
12,896,548
| | | | |
2.3
|
%
| | | |
13,190,527
| | | | |
12,896,548
| | | |
2.3
|
%
|
|
Weighted Average Shares:
| | | | | | | | | | | | | | | | | | | | | | | | |
|
- Basic
| | | |
13,182,630
| | | | |
13,132,237
| | | | |
0.4
|
%
| | | |
12,879,956
| | | | |
2.3
|
%
| | | |
13,063,344
| | | | |
12,788,378
| | | |
2.2
|
%
|
|
- Diluted
| | | |
13,655,872
| | | | |
13,560,140
| | | | |
0.7
|
%
| | | |
13,275,943
| | | | |
2.9
|
%
| | | |
13,485,791
| | | | |
13,158,155
| | | |
2.5
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
| | | Three Months Ended | | | Year Ended |
| | | December 31, 2017 | | | September 30, 2017 | | | % change | | | December 31, 2016 | | | % change | | | December 31, 2017 | | | December 31, 2016 | | | % change |
| Key Ratios | | | | | | | | | | | | | | | | | | | | | | | | |
|
Return on average assets (ROA)*
| | | |
0.87
|
%
| | | |
1.31
|
%
| | | |
-0.44
|
%
| | | |
1.21
|
%
| | | |
-0.34
|
%
| | | |
1.13
|
%
| | | |
1.08
|
%
| | |
0.05
|
%
|
|
Return on average equity (ROE) *
| | | |
8.33
|
%
| | | |
12.35
|
%
| | | |
-4.02
|
%
| | | |
11.27
|
%
| | | |
-2.94
|
%
| | | |
10.63
|
%
| | | |
9.69
|
%
| | |
0.94
|
%
|
|
Net interest margin *
| | | |
4.69
|
%
| | | |
4.68
|
%
| | | |
0.01
|
%
| | | |
4.41
|
%
| | | |
0.28
|
%
| | | |
4.61
|
%
| | | |
4.34
|
%
| | |
0.27
|
%
|
|
Net Interest Margin, excl. non-recurring items *
| | | |
4.42
|
%
| | | |
4.49
|
%
| | | |
-0.07
|
%
| | | |
4.30
|
%
| | | |
0.12
|
%
| | | |
4.43
|
%
| | | |
4.22
|
%
| | |
0.21
|
%
|
|
Efficiency ratio
| | | |
54.86
|
%
| | | |
58.83
|
%
| | | |
-3.97
|
%
| | | |
61.73
|
%
| | | |
-6.87
|
%
| | | |
58.74
|
%
| | | |
62.50
|
%
| | |
-3.76
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
Tangible common equity to tangible assets
| | | |
10.15
|
%
| | | |
10.18
|
%
| | | |
-0.03
|
%
| | | |
10.68
|
%
| | | |
-0.53
|
%
| | | |
10.15
|
%
| | | |
10.68
|
%
| | |
-0.53
|
%
|
|
Tier 1 Leverage Ratio
| | | |
10.46
|
%
| | | |
10.77
|
%
| | | |
-0.31
|
%
| | | |
10.89
|
%
| | | |
-0.43
|
%
| | | |
10.46
|
%
| | | |
10.89
|
%
| | |
-0.43
|
%
|
|
Common Equity Tier 1 Ratio
| | | |
12.26
|
%
| | | |
12.15
|
%
| | | |
0.11
|
%
| | | |
12.17
|
%
| | | |
0.09
|
%
| | | |
12.26
|
%
| | | |
12.17
|
%
| | |
0.09
|
%
|
|
Tier 1 Capital Ratio
| | | |
12.26
|
%
| | | |
12.15
|
%
| | | |
0.11
|
%
| | | |
12.17
|
%
| | | |
0.09
|
%
| | | |
12.26
|
%
| | | |
12.17
|
%
| | |
0.09
|
%
|
|
Total Risk Based Capital Ratio
| | | |
13.49
|
%
| | | |
13.37
|
%
| | | |
0.12
|
%
| | | |
13.37
|
%
| | | |
0.12
|
%
| | | |
13.49
|
%
| | | |
13.37
|
%
| | |
0.12
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
| Average Balances | | | | | | | | | | | | | | | | | | | | | | | | |
|
Investments
| | |
$
|
65,205
| | | |
$
|
60,767
| | | | |
7.3
|
%
| | |
$
|
54,369
| | | | |
19.9
|
%
| | |
$
|
60,547
| | | |
$
|
66,372
| | | |
-8.8
|
%
|
|
Loans, including loans held for sale
| | | |
756,956
| | | | |
720,880
| | | | |
5.0
|
%
| | | |
657,078
| | | | |
15.2
|
%
| | | |
714,315
| | | | |
586,628
| | | |
21.8
|
%
|
|
Interest earning assets
| | | |
822,161
| | | | |
781,647
| | | | |
5.2
|
%
| | | |
711,448
| | | | |
15.6
|
%
| | | |
774,861
| | | | |
653,000
| | | |
18.7
|
%
|
|
Total assets
| | |
$
|
875,527
| | | |
$
|
829,891
| | | | |
5.5
|
%
| | |
$
|
746,673
| | | | |
17.3
|
%
| | |
$
|
820,360
| | | |
$
|
685,617
| | | |
19.7
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
Noninterest bearing deposits
| | |
$
|
268,691
| | | |
$
|
260,863
| | | | |
3.0
|
%
| | |
$
|
236,249
| | | | |
13.7
|
%
| | |
$
|
256,267
| | | |
$
|
198,413
| | | |
29.2
|
%
|
|
Interest bearing deposits
| | | |
494,514
| | | | |
454,995
| | | | |
8.7
|
%
| | | |
413,078
| | | | |
19.7
|
%
| | | |
460,987
| | | | |
387,986
| | | |
18.8
|
%
|
|
Total deposits
| | | |
763,205
| | | | |
715,858
| | | | |
6.6
|
%
| | | |
649,328
| | | | |
17.5
|
%
| | | |
717,253
| | | | |
586,399
| | | |
22.3
|
%
|
|
Interest bearing liabilities
| | | |
505,146
| | | | |
474,354
| | | | |
6.5
|
%
| | | |
423,405
| | | | |
19.3
|
%
| | | |
470,289
| | | | |
404,972
| | | |
16.1
|
%
|
|
Shareholders' equity
| | | |
91,246
| | | | |
88,373
| | | | |
3.3
|
%
| | | |
79,991
| | | | |
14.1
|
%
| | | |
86,909
| | | | |
76,647
| | | |
13.4
|
%
|
|
Net interest earning assets
| | |
$
|
317,015
| | | |
$
|
307,293
| | | | |
3.2
|
%
| | |
$
|
288,043
| | | | |
10.1
|
%
| | |
$
|
304,572
| | | |
$
|
248,028
| | | |
22.8
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
| Asset Quality | | | 12/31/2017 | | | 9/30/2017 | | | 6/30/2017 | | | 3/31/2017 | | | 12/31/2016 | | | | | | | | | |
|
Nonaccrual Loans
| | | |
683
| | | | |
377
| | | | |
421
| | | | |
-
| | | | |
209
| | | | | | | | | | |
|
Loans 90 days or more past due, accruing
| | | |
-
| | | | |
-
| | | | |
-
| | | | |
-
| | | | |
-
| | | | | | | | | | |
|
Accruing Restructured Loans
| | |
| 354 |
| | |
| 357 |
| | |
| 360 |
| | |
| 364 |
| | |
| 367 |
| | | | | | | | | |
|
Total Non-Performing Loans
| | | |
1,037
| | | | |
734
| | | | |
781
| | | | |
364
| | | | |
576
| | | | | | | | | | |
|
Other Real Estate Loans (OREO)
| | |
| - |
| | |
| - |
| | |
| - |
| | |
| - |
| | |
| - |
| | | | | | | | | |
|
Total Non-Performing Assets
| | | |
1,037
| | | | |
734
| | | | |
781
| | | | |
364
| | | | |
576
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
Classified Loans
| | | |
2,127
| | | | |
2,138
| | | | |
2,561
| | | | |
2,065
| | | | |
2,304
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
Non-Performing Assets/Total Assets
| | | |
0.12
|
%
| | | |
0.08
|
%
| | | |
0.09
|
%
| | | |
0.05
|
%
| | | |
0.08
|
%
| | | | | | | | | |
|
Non-Performing Assets/(Gross Loans +OREO)
| | | |
0.14
|
%
| | | |
0.10
|
%
| | | |
0.11
|
%
| | | |
0.05
|
%
| | | |
0.09
|
%
| | | | | | | | | |
|
Non-Performing Loans/Gross Loans
| | | |
0.14
|
%
| | | |
0.10
|
%
| | | |
0.11
|
%
| | | |
0.05
|
%
| | | |
0.09
|
%
| | | | | | | | | |
|
Allowance for Loan Losses/Non-Performing Loans
| | | |
881
|
%
| | | |
1214
|
%
| | | |
1096
|
%
| | | |
2302
|
%
| | | |
1373
|
%
| | | | | | | | | |
|
Allowance for Loan Losses/Non-Performing Assets
| | | |
881
|
%
| | | |
1214
|
%
| | | |
1096
|
%
| | | |
2302
|
%
| | | |
1373
|
%
| | | | | | | | | |
|
Allowance for Loan Losses/Gross Loans
| | | |
1.22
|
%
| | | |
1.21
|
%
| | | |
1.22
|
%
| | | |
1.23
|
%
| | | |
1.17
|
%
| | | | | | | | | |
|
Classified Loans/Gross Loans
| | | |
0.28
|
%
| | | |
0.29
|
%
| | | |
0.36
|
%
| | | |
0.30
|
%
| | | |
0.34
|
%
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
Net Charge-offs
| | |
$
|
92
| | | |
$
|
(75
|
)
| | |
$
|
(6
|
)
| | |
$
|
71
| | | |
$
|
28
| | | | | | | | | | |
|
Net Charge-offs to Average Gross Loans *
| | | |
0.05
|
%
| | | |
-0.04
|
%
| | | |
0.00
|
%
| | | |
0.04
|
%
| | | |
0.02
|
%
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
* Annualized
| | | | | | | | | | | | | | | | | | | | | | | | |
View source version on businesswire.com: http://www.businesswire.com/news/home/20180130005439/en/
OP Bancorp
Christine Oh
EVP & CFO
213.892.1192
Christine.oh@myopenbank.com
Source: OP Bancorp