OP Bancorp, a California-based bank holding company, reported a net income of $7.2 million for the first quarter of 2026, reflecting a 30% increase from $5.6 million in the same period last year. This growth was primarily driven by an 18% rise in net interest income, which reached $20.5 million, up from $17.4 million in the prior year. The company's net interest margin also improved, expanding by 18 basis points to 3.19%. Total interest income increased to $38.5 million, compared to $34.9 million a year earlier, while interest expense rose slightly to $18.0 million from $17.4 million.
In terms of operational performance, OP Bancorp's total assets grew by 2% to $2.70 billion as of March 31, 2026, up from $2.65 billion at the end of 2025. The increase in assets was largely attributed to a $40.6 million rise in gross loans, which totaled $2.23 billion, driven by growth in commercial real estate (CRE) loans. Total deposits also increased by 2%, reaching $2.33 billion, with notable growth across all major deposit categories. The company's allowance for credit losses on loans rose to $28.4 million, reflecting a $431 thousand increase from the previous quarter, primarily due to higher specific reserves for nonaccrual loans.
Strategically, OP Bancorp has made significant adjustments to its operations, including the closure of four loan production offices in April 2026 due to limited market demand, while opening a new office in Bellevue, Washington. The company continues to focus on serving small and medium-sized businesses, particularly within the Korean-American communities in California, and operates twelve full-service branches across various states.
The company’s credit quality indicators showed a slight increase in nonperforming loans, which rose to $18.3 million, or 0.82% of gross loans, compared to 0.64% at the end of 2025. This increase was primarily due to a single CRE loan that migrated to nonaccrual status. Despite this, OP Bancorp maintains a strong capital position, with a total capital ratio of 13.17% as of March 31, 2026, exceeding the regulatory requirements for being considered "well-capitalized."
Looking ahead, OP Bancorp's management remains optimistic about navigating the current interest rate environment and economic conditions, emphasizing their commitment to customer loyalty and operational efficiency. The company plans to continue monitoring market trends and adjusting its strategies accordingly to sustain growth and profitability in the coming quarters.
About OP Bancorp
OP Bancorp is a California-based bank holding company operating Open Bank, a community-focused commercial bank serving small and medium-sized businesses and retail customers, primarily in Korean-American communities. It offers diversified lending (real estate, SBA, industrial, mortgage, consumer) and deposit products, emphasizing personalized service, community engagement, and conservative risk management. The bank leverages local relationships, community initiatives, and scalable infrastructure to support organic growth and competitive positioning.
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