OPBK · OP Bancorp

OP Bancorp reported first quarter 2026 net income of $7.2 million, up 3% from $7.0 million in the prior quarter and 30% from $5.6 million a year ago. Diluted EPS of $0.48 compared to $0.47 in Q4 2025 and $0.37 in Q1 2025. Revenue (net interest income plus noninterest income) grew to $24.6 million from $24.3 million sequentially, driven by higher noninterest income, particularly gains on sale of SBA loans which increased 30% to $2.1 million. Net interest income declined 2% to $20.5 million due to a 6-basis-point contraction in net interest margin to 3.19%, reflecting lower loan yields and two fewer accrual days, partially offset by balance sheet growth. The provision for credit losses decreased to $412,000 from $463,000 in Q4 2025, benefiting from lower quantitative reserves. Noninterest expense was essentially flat at $14.2 million. The efficiency ratio improved to 57.97% from 58.87%. Credit quality remained strong with net recoveries of $31,000 and nonperforming loans to gross loans at 0.82%, up from 0.64% due to an increase in nonaccrual CRE loans. The allowance for credit losses stood at 1.27% of gross loans. The company also declared a quarterly cash dividend of $0.14 per share, a 17% increase from $0.12, payable on May 21, 2026. Management highlighted steady revenue growth, disciplined expense management, and a solid capital base with a CET1 ratio of 10.82%.