OP Bancorp reported its financial results for the second quarter and first half of 2025, showcasing a solid performance with notable increases in both revenue and profitability. For the three months ended June 30, 2025, the company achieved a net income of $6.3 million, or $0.42 per diluted share, representing a 17% increase from $5.4 million, or $0.36 per diluted share, in the same period last year. For the first half of 2025, net income rose to $11.9 million, up 12% from $10.7 million in the prior year, driven by a 15% increase in net interest income, which reached $37.1 million.
The company’s total assets increased by $197.6 million, or 8%, to $2.56 billion as of June 30, 2025, compared to $2.37 billion at the end of 2024. This growth was primarily fueled by a $114.7 million, or 6%, rise in gross loans, which totaled $2.07 billion, and an increase in total deposits, which grew by $227.4 million, or 11%, to $2.25 billion. The increase in deposits was attributed to a continued focus on attracting noninterest-bearing demand deposits, which accounted for 25% of total deposits.
In terms of operational developments, OP Bancorp expanded its loan portfolio, particularly in commercial real estate (CRE) and home mortgage loans. The company reported that 90% of its gross loans were secured by real property as of June 30, 2025, up from 88% at the end of 2024. The allowance for credit losses on loans increased to $26.3 million, reflecting the growth in the loan portfolio and adjustments for economic uncertainties. The company maintained a strong capital position, with a total capital ratio of 12.26% as of June 30, 2025, exceeding regulatory requirements.
Looking ahead, OP Bancorp's management expressed optimism about navigating the current economic landscape, which includes a stable interest rate environment and ongoing inflation concerns. The company plans to continue focusing on its core markets, particularly within the Korean-American communities in California, while also exploring opportunities for growth in other regions. The management remains committed to maintaining strong asset quality and effective risk management practices to support future growth and profitability.
About OP Bancorp
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