10/24/2024 | Press release | Distributed by Public on 10/24/2024 14:31
($ in thousands, except per share data) | As of and For the Quarter | % Change 3Q2024 vs. | ||||||||
3Q2024 | 2Q2024 | 3Q2023 | 2Q2024 | 3Q2023 | ||||||
Selected Income Statement Data: | ||||||||||
Net interest income | $ | 16,506 | $ | 16,194 | $ | 17,313 | 1.9 | % | (4.7) | % |
Provision for credit losses | 448 | 617 | 1,359 | (27.4) | (67.0) | |||||
Noninterest income | 4,240 | 4,184 | 2,601 | 1.3 | 63.0 | |||||
Noninterest expense | 12,720 | 12,189 | 11,535 | 4.4 | 10.3 | |||||
Income tax expense | 2,142 | 2,136 | 1,899 | 0.3 | 12.8 | |||||
Net income | 5,436 | 5,436 | 5,121 | - | 6.2 | |||||
Diluted earnings per share | 0.36 | 0.36 | 0.33 | - | 9.1 | |||||
Selected Balance Sheet Data: | ||||||||||
Gross loans
|
$ | 1,931,007 | $ | 1,870,106 | $ | 1,759,525 | 3.3 | % | 9.7 | % |
Total deposits | 2,064,603 | 1,940,821 | 1,825,171 | 6.4 | 13.1 | |||||
Total assets | 2,387,980 | 2,290,680 | 2,142,675 | 4.2 | 11.4 | |||||
Average loans(1)
|
1,905,952 | 1,843,284 | 1,740,188 | 3.4 | 9.5 | |||||
Average deposits | 1,998,633 | 1,970,320 | 1,821,361 | 1.4 | 9.7 | |||||
Credit Quality: | ||||||||||
Nonperforming loans | $ | 3,620 | $ | 4,389 | $ | 4,211 | (17.5) | % | (14.0) | % |
Nonperforming loans to gross loans | 0.19 | % | 0.23 | % | 0.24 | % | (0.04) | (0.05) | ||
Criticized loans(2) to gross loans
|
0.85 | 0.88 | 0.78 | (0.03) | 0.07 | |||||
Net charge-offs (recoveries)(3) to average gross loans(1)
|
0.01 | (0.00) | 0.11 | 0.01 | (0.10) | |||||
Allowance for credit losses to gross loans | 1.19 | 1.22 | 1.23 | (0.03) | (0.04) | |||||
Allowance for credit losses to nonperforming loans | 634 | 519 | 513 | 115.00 | 121.00 | |||||
Financial Ratios: | ||||||||||
Return on average assets(3)
|
0.94 | % | 0.95 | % | 0.96 | % | (0.01) | % | (0.02) | % |
Return on average equity(3)
|
10.95 | 11.23 | 11.07 | (0.28) | (0.12) | |||||
Net interest margin(3)
|
2.95 | 2.96 | 3.38 | (0.01) | (0.43) | |||||
Efficiency ratio(4)
|
61.31 | 59.81 | 57.92 | 1.50 | 3.39 | |||||
Common equity tier 1 capital ratio | 11.57 | 12.01 | 12.09 | (0.44) | (0.52) | |||||
Leverage ratio | 9.30 | 9.28 | 9.63 | 0.02 | (0.33) | |||||
Book value per common share | $ | 13.75 | $ | 13.23 | $ | 12.17 | 3.9 | 13.0 | ||
($ in thousands) | For the Three Months Ended | % Change 3Q2024 vs. | ||||||||
3Q2024 | 2Q2024 | 3Q2023 | 2Q2024 | 3Q2023 | ||||||
Interest Income | ||||||||||
Interest income | $ | 35,299 | $ | 34,357 | $ | 31,186 | 2.7 | % | 13.2 | % |
Interest expense | 18,793 | 18,163 | 13,873 | 3.5 | 35.5 | |||||
Net interest income | $ | 16,506 | $ | 16,194 | $ | 17,313 | 1.9 | % | (4.7) | % |
($ in thousands) | For the Three Months Ended | Yield Change 3Q2024 vs. | ||||||||||||||
3Q2024 | 2Q2024 | 3Q2023 | ||||||||||||||
Interest and Fees |
Yield/Rate(1)
|
Interest and Fees |
Yield/Rate(1)
|
Interest and Fees |
Yield/Rate(1)
|
2Q2024 | 3Q2023 | |||||||||
Interest-earning Assets: | ||||||||||||||||
Loans | $ | 31,885 | 6.66 | % | $ | 30,605 | 6.67 | % | $ | 28,250 | 6.45 | % | (0.01) | % | 0.21 | % |
Total interest-earning assets | 35,299 | 6.30 | 34,357 | 6.29 | 31,186 | 6.08 | 0.01 | 0.22 | ||||||||
Interest-bearing Liabilities: | ||||||||||||||||
Interest-bearing deposits | 17,921 | 4.85 | 17,343 | 4.84 | 13,006 | 4.22 | 0.01 | 0.63 | ||||||||
Total interest-bearing liabilities | 18,793 | 4.82 | 18,163 | 4.81 | 13,873 | 4.23 | 0.01 | 0.59 | ||||||||
Ratios: | ||||||||||||||||
Net interest income / interest rate spreads | 16,506 | 1.48 | 16,194 | 1.48 | 17,313 | 1.85 | - | (0.37) | ||||||||
Net interest margin | 2.95 | 2.96 | 3.38 | (0.01) | (0.43) | |||||||||||
Total deposits / cost of deposits | 17,921 | 3.57 | 17,343 | 3.54 | 13,006 | 2.83 | 0.03 | 0.74 | ||||||||
Total funding liabilities / cost of funds | 18,793 | 3.60 | 18,163 | 3.57 | 13,873 | 2.90 | 0.03 | 0.70 | ||||||||
($ in thousands) | For the Three Months Ended | Yield Change 3Q2024 vs. | ||||||||||||||
3Q2024 | 2Q2024 | 3Q2023 | ||||||||||||||
Interest & Fees |
Yield(1)
|
Interest & Fees |
Yield(1)
|
Interest & Fees |
Yield(1)
|
2Q2024 | 3Q2023 | |||||||||
Loan Yield Component: | ||||||||||||||||
Contractual interest rate | $ | 31,182 | 6.52 | % | $ | 29,719 | 6.48 | % | $ | 27,319 | 6.24 | % | 0.04 | % | 0.28 | % |
Accretion of SBA loan discount(2)
|
918 | 0.19 | 1,087 | 0.24 | 1,263 | 0.29 | (0.05) | (0.10) | ||||||||
Amortization of net deferred fees | 23 | - | (44) | (0.01) | 1 | - | 0.01 | - | ||||||||
Amortization of premium | (487) | (0.10) | (396) | (0.09) | (445) | (0.10) | (0.01) | - | ||||||||
Net interest recognized on nonaccrual loans | (61) | (0.01) | (3) | 0.00 | (26) | (0.01) | (0.01) | - | ||||||||
Prepayment penalty income and other fees(3)
|
310 | 0.06 | 242 | 0.05 | 138 | 0.03 | 0.01 | 0.03 | ||||||||
Yield on loans | $ | 31,885 | 6.66 | % | $ | 30,605 | 6.67 | % | $ | 28,250 | 6.45 | % | (0.01) | % | 0.21 | % |
($ in thousands) | For the Three Months Ended | |||||
3Q2024 | 2Q2024 | 3Q2023 | ||||
Provision for credit losses on loans | $ | 234 | $ | 627 | $ | 1,303 |
Provision for (reversal of) credit losses on off-balance sheet exposure | 214 | (10) | 56 | |||
Total provision for credit losses | $ | 448 | $ | 617 | $ | 1,359 |
($ in thousands) | For the Three Months Ended | % Change 3Q2024 vs. | ||||||||
3Q2024 | 2Q2024 | 3Q2023 | 2Q2024 | 3Q2023 | ||||||
Noninterest Income | ||||||||||
Service charges on deposits | $ | 889 | $ | 793 | $ | 575 | 12.1 | % | 54.6 | % |
Loan servicing fees, net of amortization | 693 | 575 | 468 | 20.5 | 48.1 | |||||
Gain on sale of loans | 2,088 | 2,325 | 1,179 | (10.2) | 77.1 | |||||
Other income | 570 | 491 | 379 | 16.1 | 50.4 | |||||
Total noninterest income | $ | 4,240 | $ | 4,184 | $ | 2,601 | 1.3 | % | 63.0 | % |
($ in thousands) | For the Three Months Ended | % Change 3Q2024 vs. | ||||||||
3Q2024 | 2Q2024 | 3Q2023 | 2Q2024 | 3Q2023 | ||||||
Noninterest Expense | ||||||||||
Salaries and employee benefits | $ | 8,031 | $ | 7,568 | $ | 7,014 | 6.1 | % | 14.5 | % |
Occupancy and equipment | 1,676 | 1,660 | 1,706 | 1.0 | (1.8) | |||||
Data processing and communication | 634 | 530 | 369 | 19.6 | 71.8 | |||||
Professional fees | 346 | 406 | 440 | (14.8) | (21.4) | |||||
FDIC insurance and regulatory assessments | 391 | 378 | 333 | 3.4 | 17.4 | |||||
Promotion and advertising | 151 | 151 | 207 | - | (27.1) | |||||
Directors' fees | 154 | 178 | 164 | (13.5) | (6.1) | |||||
Foundation donation and other contributions | 549 | 539 | 529 | 1.9 | 3.8 | |||||
Other expenses | 788 | 779 | 773 | 1.2 | 1.9 | |||||
Total noninterest expense | $ | 12,720 | $ | 12,189 | $ | 11,535 | 4.4 | % | 10.3 | % |
($ in thousands) | As of | % Change 3Q2024 vs. | ||||||||
3Q2024 | 2Q2024 | 3Q2023 | 2Q2024 | 3Q2023 | ||||||
CRE loans | $ | 966,472 | $ | 931,284 | $ | 878,824 | 3.8 | % | 10.0 | % |
SBA loans | 252,379 | 242,395 | 240,154 | 4.1 | 5.1 | |||||
C&I loans | 212,476 | 188,557 | 124,632 | 12.7 | 70.5 | |||||
Home mortgage loans | 499,666 | 506,873 | 515,789 | (1.4) | (3.1) | |||||
Consumer & other loans | 14 | 997 | 126 | (98.6) | (88.9) | |||||
Gross loans | $ | 1,931,007 | $ | 1,870,106 | $ | 1,759,525 | 3.3 | % | 9.7 | % |
($ in thousands) | For the Three Months Ended | % Change 3Q2024 vs. | ||||||||
3Q2024 | 2Q2024 | 3Q2023 | 2Q2024 | 3Q2023 | ||||||
CRE loans | $ | 68,525 | $ | 41,990 | $ | 33,222 | 63.2 | % | 106.3 | % |
SBA loans
|
46,302 | 24,142 | 39,079 | 91.8 | 18.5 | |||||
C&I loans | 27,771 | 21,271 | 14,617 | 30.6 | 90.0 | |||||
Home mortgage loans | 10,105 | 13,720 | 9,137 | (26.3) | 10.6 | |||||
Gross loans | $ | 152,703 | $ | 101,123 | $ | 96,055 | 51.0 | % | 59.0 | % |
($ in thousands) | For the Three Months Ended | |||||
3Q2024 | 2Q2024 | 3Q2023 | ||||
Loan Activities: | ||||||
Gross loans, beginning | $ | 1,870,106 | $ | 1,804,987 | $ | 1,716,197 |
New originations | 152,703 | 101,123 | 96,055 | |||
Net line advances | (526) | 37,929 | 22,146 | |||
Purchases | 862 | 5,559 | 6,732 | |||
Sales | (35,576) | (32,102) | (23,377) | |||
Paydowns | (24,798) | (19,710) | (22,169) | |||
Payoffs | (29,642) | (36,902) | (36,024) | |||
Decrease (increase) in loans held for sale | (1,674) | 9,590 | - | |||
Other | (448) | (368) | 215 | |||
Total | 60,901 | 65,119 | 43,328 | |||
Gross loans, ending | $ | 1,931,007 | $ | 1,870,106 | $ | 1,759,525 |
($ in thousands) | As of | |||||||||||
3Q2024 | 2Q2024 | 3Q2023 | ||||||||||
% | Rate | % | Rate | % | Rate | |||||||
Fixed rate | 35.7 | % | 5.42 | % | 36.2 | % | 5.39 | % | 36.3 | % | 4.95 | % |
Hybrid rate | 34.7 | 5.60 | 33.9 | 5.42 | 34.0 | 5.08 | ||||||
Variable rate | 29.6 | 8.94 | 29.9 | 9.19 | 29.7 | 9.23 | ||||||
Gross loans | 100.0 | % | 6.52 | % | 100.0 | % | 6.54 | % | 100.0 | % | 6.27 | % |
($ in thousands) | As of September 30, 2024 | |||||||||||||||
Within One Year | One Year Through Five Years | After Five Years | Total | |||||||||||||
Amount | Rate | Amount | Rate | Amount | Rate | Amount | Rate | |||||||||
Fixed rate | $ | 191,036 | 5.96 | % | $ | 282,324 | 5.27 | % | $ | 216,044 | 5.13 | % | $ | 689,404 | 5.42 | % |
Hybrid rate | 2,651 | 9.25 | 211,150 | 4.39 | 456,362 | 6.14 | 670,163 | 5.60 | ||||||||
Variable rate | 87,435 | 8.47 | 139,453 | 8.57 | 344,552 | 9.21 | 571,440 | 8.94 | ||||||||
Gross loans | $ | 281,122 | 6.77 | % | $ | 632,927 | 5.71 | % | $ | 1,016,958 | 6.97 | % | $ | 1,931,007 | 6.52 | % |
($ in thousands) | As of and For the Three Months Ended | Change 3Q2024 vs. | ||||||||
3Q2024 | 2Q2024 | 3Q2023 | 2Q2024 | 3Q2023 | ||||||
Allowance for credit losses on loans, beginning | $ | 22,760 | $ | 22,129 | $ | 20,802 | $ | 631 | $ | 1,958 |
Provision for credit losses
|
234 | 627 | 1,303 | (393) | (1,069) | |||||
Gross charge-offs | (40) | - | (492) | (40) | 452 | |||||
Gross recoveries | 6 | 4 | 4 | 2 | 2 | |||||
Net (charge-offs) recoveries | (34) | 4 | (488) | (38) | 454 | |||||
Allowance for credit losses on loans, ending
|
$ | 22,960 | $ | 22,760 | $ | 21,617 | $ | 200 | $ | 1,343 |
Allowance for credit losses on off-balance sheet exposure, beginning | $ | 458 | $ | 468 | $ | 367 | $ | (10) | $ | 91 |
Provision for (reversal of) credit losses
|
214 | (10) | 56 | 224 | 158 | |||||
Allowance for credit losses on off-balance sheet exposure, ending
|
$ | 672 | $ | 458 | $ | 423 | $ | 214 | $ | 249 |
($ in thousands) | As of and For the Three Months Ended | Change 3Q2024 vs. | ||||||||
3Q2024 | 2Q2024 | 3Q2023 | 2Q2024 | 3Q2023 | ||||||
Loans 30-89 days past due and still accruing | $ | 10,306 | $ | 6,652 | $ | 8,356 | 54.9 | % | 23.3 | % |
As a % of gross loans | 0.53 | % | 0.36 | % | 0.47 | % | 0.17 | 0.06 | ||
Nonperforming loans(1)
|
$ | 3,620 | $ | 4,389 | $ | 4,211 | (17.5) | % | (14.0) | % |
Nonperforming assets(1)
|
4,857 | 5,626 | 4,211 | (13.7) | 15.3 | |||||
Nonperforming loans to gross loans | 0.19 | % | 0.23 | % | 0.24 | % | (0.04) | (0.05) | ||
Nonperforming assets to total assets | 0.20 | 0.25 | 0.20 | (0.05) | - | |||||
Criticized loans(1)(2)
|
$ | 16,500 | $ | 16,428 | $ | 13,790 | 0.4 | % | 19.7 | % |
Criticized loans to gross loans | 0.85 | % | 0.88 | % | 0.78 | % | (0.03) | 0.07 | ||
Allowance for credit losses ratios: | ||||||||||
As a % of gross loans | 1.19 | % | 1.22 | % | 1.23 | % | (0.03) | % | (0.04) | % |
As a % of nonperforming loans | 634 | 519 | 513 | 115 | 121 | |||||
As a % of nonperforming assets | 473 | 405 | 513 | 68 | (40) | |||||
As a % of criticized loans | 139 | 139 | 157 | - | (18) | |||||
Net charge-offs (recoveries)(3) to average gross loans(4)
|
0.01 | (0.00) | 0.11 | 0.01 | (0.10) | |||||
($ in thousands) | As of | % Change 3Q2024 vs. | ||||||||||||||
3Q2024 | 2Q2024 | 3Q2023 | ||||||||||||||
Amount | % | Amount | % | Amount | % | 2Q2024 | 3Q2023 | |||||||||
Noninterest-bearing deposits | $ | 561,801 | 27.2 | % | $ | 518,456 | 26.7 | % | $ | 605,509 | 33.2 | % | 8.4 | % | (7.2) | % |
Money market deposits and others | 343,188 | 16.6 | 332,137 | 17.1 | 348,869 | 19.1 | 3.3 | (1.6) | ||||||||
Time deposits | 1,159,614 | 56.2 | 1,090,228 | 56.2 | 870,793 | 47.7 | 6.4 | 33.2 | ||||||||
Total deposits | $ | 2,064,603 | 100.0 | % | $ | 1,940,821 | 100.0 | % | $ | 1,825,171 | 100.0 | % | 6.4 | % | 13.1 | % |
Estimated uninsured deposits | $ | 946,406 | 45.8 | % | $ | 860,419 | 44.3 | % | $ | 808,776 | 44.3 | % | 10.0 | % | 17.0 | % |
As of September 30, 2024 | ||||||||||||
($ in thousands) |
Within Three Months |
Three to Six Months |
Six to Nine Months |
Nine to Twelve Months |
After Twelve Months |
Total | ||||||
Time deposits (greater than $250) | $ | 205,957 | $ | 189,693 | $ | 87,508 | $ | 80,133 | $ | 1,256 | $ | 564,547 |
Time deposits ($250 or less) | 261,163 | 124,315 | 97,180 | 92,585 | 19,824 | 595,067 | ||||||
Total time deposits | $ | 467,120 | $ | 314,008 | $ | 184,688 | $ | 172,718 | $ | 21,080 | $ | 1,159,614 |
Weighted average rate | 5.18 | % | 5.03 | % | 5.16 | % | 4.93 | % | 3.94 | % | 5.08 | % |
($ in thousands) | 3Q2024 | 2Q2024 | 3Q2023 | |||
Liquidity Assets: | ||||||
Cash and cash equivalents | $ | 166,756 | $ | 127,676 | $ | 105,740 |
Available-for-sale debt securities | 199,373 | 199,205 | 191,313 | |||
Liquid assets | $ | 366,129 | $ | 326,881 | $ | 297,053 |
Liquid assets to total assets | 15.3 | % | 14.3 | % | 13.9 | % |
Available borrowings: | ||||||
Federal Home Loan Bank-San Francisco | $ | 397,617 | $ | 343,600 | $ | 375,874 |
Federal Reserve Bank | 207,782 | 191,421 | 186,380 | |||
Pacific Coast Bankers Bank | 50,000 | 50,000 | 50,000 | |||
Zions Bank | 25,000 | 25,000 | 25,000 | |||
First Horizon Bank | 25,000 | 25,000 | 25,000 | |||
Total available borrowings | $ | 705,399 | $ | 635,021 | $ | 662,254 |
Total available borrowings to total assets | 29.5 | % | 27.6 | % | 30.9 | % |
Liquid assets and available borrowings to total deposits | 51.9 | % | 49.6 | % | 52.6 | % |
OP Bancorp(1)
|
Open Bank |
Minimum Well Capitalized Ratio |
Minimum
Capital Ratio+
Conservation
Buffer(2)
|
|||||
Risk-Based Capital Ratios: | ||||||||
Total risk-based capital ratio | 12.79 | % | 12.69 | % | 10.00 | % | 10.50 | % |
Tier 1 risk-based capital ratio | 11.57 | 11.47 | 8.00 | 8.50 | ||||
Common equity tier 1 ratio | 11.57 | 11.47 | 6.50 | 7.00 | ||||
Leverage ratio | 9.30 | 9.22 | 5.00 | 4.00 | ||||
OP Bancorp | Change 3Q2024 vs. | |||||||||
3Q2024 | 2Q2024 | 3Q2023 | 2Q2024 | 3Q2023 | ||||||
Risk-Based Capital Ratios: | ||||||||||
Total risk-based capital ratio | 12.79 | % | 13.26 | % | 13.31 | % | (0.47) | % | (0.52) | % |
Tier 1 risk-based capital ratio | 11.57 | 12.01 | 12.09 | (0.44) | (0.52) | |||||
Common equity tier 1 ratio | 11.57 | 12.01 | 12.09 | (0.44) | (0.52) | |||||
Leverage ratio | 9.30 | 9.28 | 9.63 | 0.02 | (0.33) | |||||
Risk-weighted Assets ($ in thousands) | $ | 1,876,698 | $ | 1,776,821 | $ | 1,707,318 | 5.62 | 9.92 | ||
($ in thousands) | As of | % Change 3Q2024 vs. | ||||||||
3Q2024 | 2Q2024 | 3Q2023 | 2Q2024 | 3Q2023 | ||||||
Assets | ||||||||||
Cash and due from banks | $ | 24,519 | $ | 21,771 | $ | 21,748 | 12.6 | % | 12.7 | % |
Interest-bearing deposits in other banks | 142,237 | 105,905 | 83,992 | 34.3 | 69.3 | |||||
Cash and cash equivalents | 166,756 | 127,676 | 105,740 | 30.6 | 57.7 | |||||
Available-for-sale debt securities, at fair value | 199,373 | 199,205 | 191,313 | 0.1 | 4.2 | |||||
Other investments | 16,520 | 16,367 | 16,100 | 0.9 | 2.6 | |||||
Loans held for sale | 8,160 | 6,485 | - | 25.8 | n/m | |||||
CRE loans | 966,472 | 931,284 | 878,824 | 3.8 | 10.0 | |||||
SBA loans | 252,379 | 242,395 | 240,154 | 4.1 | 5.1 | |||||
C&I loans | 212,476 | 188,557 | 124,632 | 12.7 | 70.5 | |||||
Home mortgage loans | 499,666 | 506,873 | 515,789 | (1.4) | (3.1) | |||||
Consumer loans | 14 | 997 | 126 | (98.6) | (88.9) | |||||
Gross loans receivable | 1,931,007 | 1,870,106 | 1,759,525 | 3.3 | 9.7 | |||||
Allowance for credit losses | (22,960) | (22,760) | (21,617) | 0.9 | 6.2 | |||||
Net loans receivable | 1,908,047 | 1,847,346 | 1,737,908 | 3.3 | 9.8 | |||||
Premises and equipment, net | 4,961 | 4,716 | 5,378 | 5.2 | (7.8) | |||||
Accrued interest receivable, net | 9,479 | 8,555 | 7,996 | 10.8 | 18.5 | |||||
Servicing assets | 10,877 | 11,043 | 11,931 | (1.5) | (8.8) | |||||
Company owned life insurance | 22,739 | 22,566 | 22,071 | 0.8 | 3.0 | |||||
Deferred tax assets, net | 12,288 | 14,117 | 15,061 | (13.0) | (18.4) | |||||
Other real estate owned | 1,237 | 1,237 | - | - | n/m | |||||
Operating right-of-use assets | 7,870 | 8,348 | 8,993 | (5.7) | (12.5) | |||||
Other assets | 19,673 | 23,019 | 20,184 | (14.5) | (2.5) | |||||
Total assets | $ | 2,387,980 | $ | 2,290,680 | $ | 2,142,675 | 4.2 | % | 11.4 | % |
Liabilities and Shareholders' Equity | ||||||||||
Liabilities: | ||||||||||
Noninterest-bearing | $ | 561,801 | $ | 518,456 | $ | 605,509 | 8.4 | % | (7.2) | % |
Money market and others | 343,188 | 332,137 | 348,869 | 3.3 | (1.6) | |||||
Time deposits greater than $250 | 564,547 | 533,857 | 420,162 | 5.7 | 34.4 | |||||
Other time deposits | 595,067 | 556,371 | 450,631 | 7.0 | 32.1 | |||||
Total deposits | 2,064,603 | 1,940,821 | 1,825,171 | 6.4 | 13.1 | |||||
Federal Home Loan Bank advances | 75,000 | 115,000 | 95,000 | (34.8) | (21.1) | |||||
Accrued interest payable | 19,483 | 15,504 | 13,552 | 25.7 | 43.8 | |||||
Operating lease liabilities | 8,417 | 9,000 | 9,926 | (6.5) | (15.2) | |||||
Other liabilities | 16,874 | 14,369 | 14,719 | 17.4 | 14.6 | |||||
Total liabilities | 2,184,377 | 2,094,694 | 1,958,368 | 4.3 | 11.5 | |||||
Shareholders' equity: | ||||||||||
Common stock | 73,697 | 73,749 | 77,632 | (0.1) | (5.1) | |||||
Additional paid-in capital | 11,713 | 11,441 | 10,606 | 2.4 | 10.4 | |||||
Retained earnings | 131,588 | 127,929 | 117,483 | 2.9 | 12.0 | |||||
Accumulated other comprehensive loss | (13,395) | (17,133) | (21,414) | (21.8) | (37.4) | |||||
Total shareholders' equity | 203,603 | 195,986 | 184,307 | 3.9 | 10.5 | |||||
Total liabilities and shareholders' equity | $ | 2,387,980 | $ | 2,290,680 | $ | 2,142,675 | 4.2 | % | 11.4 | % |
($ in thousands, except share and per share data) | For the Three Months Ended | % Change 3Q2024 vs. | ||||||||
3Q2024 | 2Q2024 | 3Q2023 | 2Q2024 | 3Q2023 | ||||||
Interest income | ||||||||||
Interest and fees on loans | $ | 31,885 | $ | 30,605 | $ | 28,250 | 4.2 | % | 12.9 | % |
Interest on available-for-sale debt securities | 1,626 | 1,590 | 1,519 | 2.3 | 7.0 | |||||
Other interest income | 1,788 | 2,162 | 1,417 | (17.3) | 26.2 | |||||
Total interest income | 35,299 | 34,357 | 31,186 | 2.7 | 13.2 | |||||
Interest expense | ||||||||||
Interest on deposits | 17,921 | 17,343 | 13,006 | 3.3 | 37.8 | |||||
Interest on borrowings | 872 | 820 | 867 | 6.3 | 0.6 | % | ||||
Total interest expense | 18,793 | 18,163 | 13,873 | 3.5 | 35.5 | |||||
Net interest income | 16,506 | 16,194 | 17,313 | 1.9 | (4.7) | |||||
Provision for credit losses | 448 | 617 | 1,359 | (27.4) | (67.0) | |||||
Net interest income after provision for credit losses | 16,058 | 15,577 | 15,954 | 3.1 | 0.7 | |||||
Noninterest income | ||||||||||
Service charges on deposits | 889 | 793 | 575 | 12.1 | 54.6 | |||||
Loan servicing fees, net of amortization | 693 | 575 | 468 | 20.5 | 48.1 | |||||
Gain on sale of loans | 2,088 | 2,325 | 1,179 | (10.2) | 77.1 | |||||
Other income | 570 | 491 | 379 | 16.1 | 50.4 | |||||
Total noninterest income | 4,240 | 4,184 | 2,601 | 1.3 | 63.0 | |||||
Noninterest expense | ||||||||||
Salaries and employee benefits | 8,031 | 7,568 | 7,014 | 6.1 | 14.5 | |||||
Occupancy and equipment | 1,676 | 1,660 | 1,706 | 1.0 | (1.8) | |||||
Data processing and communication | 634 | 530 | 369 | 19.6 | 71.8 | |||||
Professional fees | 346 | 406 | 440 | (14.8) | (21.4) | |||||
FDIC insurance and regulatory assessments | 391 | 378 | 333 | 3.4 | 17.4 | |||||
Promotion and advertising | 151 | 151 | 207 | - | (27.1) | |||||
Directors' fees | 154 | 178 | 164 | (13.5) | (6.1) | |||||
Foundation donation and other contributions | 549 | 539 | 529 | 1.9 | 3.8 | |||||
Other expenses | 788 | 779 | 773 | 1.2 | 1.9 | |||||
Total noninterest expense | 12,720 | 12,189 | 11,535 | 4.4 | 10.3 | |||||
Income before income tax expense | 7,578 | 7,572 | 7,020 | 0.1 | 7.9 | |||||
Income tax expense | 2,142 | 2,136 | 1,899 | 0.3 | 12.8 | |||||
Net income | $ | 5,436 | $ | 5,436 | $ | 5,121 | - | % | 6.2 | % |
Book value per share | $ | 13.75 | $ | 13.23 | $ | 12.17 | 3.9 | % | 13.0 | % |
Earnings per share - basic | 0.36 | 0.36 | 0.33 | - | 9.1 | |||||
Earnings per share - diluted | 0.36 | 0.36 | 0.33 | - | 9.1 | |||||
Shares of common stock outstanding, at period end | 14,811,671 | 14,816,281 | 15,149,203 | - | % | (2.2) | % | |||
Weighted average shares: | ||||||||||
- Basic | 14,812,118 | 14,868,344 | 15,131,587 | (0.4) | % | (2.1) | % | |||
- Diluted | 14,812,118 | 14,868,344 | 15,140,577 | (0.4) | (2.2) | |||||
For the Three Months Ended | % Change 3Q2024 vs. | |||||||||
3Q2024 | 2Q2024 | 3Q2023 | 2Q2024 | 3Q2023 | ||||||
Return on average assets (ROA)(1)
|
0.94 | % | 0.95 | % | 0.96 | % | - | % | - | % |
Return on average equity (ROE)(1)
|
10.95 | 11.23 | 11.07 | (0.3) | (0.1) | |||||
Net interest margin(1)
|
2.95 | 2.96 | 3.38 | - | (0.4) | |||||
Efficiency ratio | 61.31 | 59.81 | 57.92 | 1.5 | 3.4 | |||||
Total risk-based capital ratio | 12.79 | % | 13.26 | % | 13.31 | % | (0.5) | % | (0.5) | % |
Tier 1 risk-based capital ratio | 11.57 | 12.01 | 12.09 | (0.4) | (0.5) | |||||
Common equity tier 1 ratio | 11.57 | 12.01 | 12.09 | (0.4) | (0.5) | |||||
Leverage ratio | 9.30 | 9.28 | 9.63 | - | (0.3) | |||||
($ in thousands, except share and per share data) | For the Nine Months Ended | |||||
3Q2024 | 3Q2023 | % Change | ||||
Interest income | ||||||
Interest and fees on loans | $ | 92,632 | $ | 81,549 | 13.6 | % |
Interest on available-for-sale debt securities | 4,676 | 4,647 | 0.6 | |||
Other interest income | 5,261 | 3,686 | 42.7 | |||
Total interest income | 102,569 | 89,882 | 14.1 | |||
Interest expense | ||||||
Interest on deposits | 50,939 | 35,308 | 44.3 | |||
Interest on borrowings | 2,951 | 2,117 | 39.4 | |||
Total interest expense | 53,890 | 37,425 | 44.0 | |||
Net interest income | 48,679 | 52,457 | (7.2) | |||
Provision for credit losses | 1,210 | 1,021 | 18.5 | |||
Net interest income after provision for credit losses | 47,469 | 51,436 | (7.7) | |||
Noninterest income | ||||||
Service charges on deposits | 2,294 | 1,566 | 46.5 | % | ||
Loan servicing fees, net of amortization | 2,040 | 1,909 | 6.9 | |||
Gain on sale of loans | 6,116 | 5,847 | 4.6 | |||
Other income | 1,560 | 1,179 | 32.3 | |||
Total noninterest income | 12,010 | 10,501 | 14.4 | |||
Noninterest expense | ||||||
Salaries and employee benefits | 23,440 | 21,947 | 6.8 | |||
Occupancy and equipment | 4,991 | 4,874 | 2.4 | |||
Data processing and communication | 1,651 | 1,465 | 12.7 | |||
Professional fees | 1,147 | 1,180 | (2.8) | |||
FDIC insurance and regulatory assessments | 1,143 | 1,220 | (6.3) | |||
Promotion and advertising | 451 | 528 | (14.6) | |||
Directors' fees | 489 | 535 | (8.6) | |||
Foundation donation and other contributions | 1,628 | 1,876 | (13.2) | |||
Other expenses | 2,126 | 2,118 | 0.4 | |||
Total noninterest expense | 37,066 | 35,743 | 3.7 | |||
Income before income tax expense | 22,413 | 26,194 | (14.4) | |||
Income tax expense | 6,315 | 7,448 | (15.2) | |||
Net income | $ | 16,098 | $ | 18,746 | (14.1) | % |
Book value per share | $ | 13.75 | $ | 12.17 | 13.0 | % |
Earnings per share - basic | 1.06 | 1.21 | (12.4) | |||
Earnings per share - diluted | 1.06 | 1.21 | (12.4) | |||
Shares of common stock outstanding, at period end | 14,811,671 | 15,149,203 | (2.2) | % | ||
Weighted average shares: | ||||||
- Basic | 14,890,479 | 15,158,365 | (1.8) | % | ||
- Diluted | 14,890,479 | 15,169,794 | (1.8) | |||
For the Nine Months Ended | ||||||
3Q2024 | 3Q2023 | % Change | ||||
Return on average assets (ROA)(1)
|
0.95 | % | 1.18 | % | (0.2) | % |
Return on average equity (ROE)(1)
|
11.00 | 13.69 | (2.7) | |||
Net interest margin(1)
|
2.99 | 3.45 | (0.5) | |||
Efficiency ratio | 61.08 | 56.77 | 4.3 | |||
Total risk-based capital ratio | 12.79 | % | 13.31 | % | (0.5) | % |
Tier 1 risk-based capital ratio | 11.57 | 12.09 | (0.5) | |||
Common equity tier 1 ratio | 11.57 | 12.09 | (0.5) | |||
Leverage ratio | 9.30 | 9.63 | (0.3) | |||
($ in thousands) | As of and For the Three Months Ended | |||||
3Q2024 | 2Q2024 | 3Q2023 | ||||
Nonaccrual loans(1)
|
$ | 3,620 | $ | 4,389 | $ | 4,211 |
Loans 90 days or more past due, accruing | - | - | - | |||
Nonperforming loans | 3,620 | 4,389 | 4,211 | |||
OREO | 1,237 | 1,237 | - | |||
Nonperforming assets | $ | 4,857 | $ | 5,626 | $ | 4,211 |
Criticized loans by risk categories: | ||||||
Special mention loans | $ | 4,540 | $ | 3,339 | $ | 3,651 |
Classified loans(1)(2)
|
11,960 | 13,089 | 10,139 | |||
Total criticized loans | $ | 16,500 | $ | 16,428 | $ | 13,790 |
Criticized loans by loan type: | ||||||
CRE loans | $ | 5,249 | $ | 5,896 | $ | 5,130 |
SBA loans | 10,144 | 9,771 | 6,169 | |||
C&I loans | 1,107 | 550 | - | |||
Home mortgage loans | - | 211 | 2,491 | |||
Total criticized loans | $ | 16,500 | $ | 16,428 | $ | 13,790 |
Nonperforming loans / gross loans | 0.19 | % | 0.23 | % | 0.24 | % |
Nonperforming assets / gross loans plus OREO | 0.25 | 0.30 | 0.24 | |||
Nonperforming assets / total assets | 0.20 | 0.25 | 0.20 | |||
Classified loans / gross loans | 0.62 | 0.70 | 0.58 | |||
Criticized loans / gross loans | 0.85 | 0.88 | 0.78 | |||
Allowance for credit losses ratios: | ||||||
As a % of gross loans | 1.19 | % | 1.22 | % | 1.23 | % |
As a % of nonperforming loans | 634 | 519 | 513 | |||
As a % of nonperforming assets | 473 | 405 | 513 | |||
As a % of classified loans | 192 | 174 | 213 | |||
As a % of criticized loans | 139 | 139 | 157 | |||
Net charge-offs (recoveries) | $ | 34 | $ | (4) | $ | 488 |
Net charge-offs (recoveries)(3) to average gross loans(4)
|
0.01 | % | (0.00) | % | 0.11 | % |
($ in thousands) | 3Q2024 | 2Q2024 | 3Q2023 | |||
Accruing delinquent loans 30-89 days past due | ||||||
30-59 days | $ | 4,095 | $ | 3,774 | $ | 5,979 |
60-89 days | 6,211 | 2,878 | 2,377 | |||
Total | $ | 10,306 | $ | 6,652 | $ | 8,356 |
For the Three Months Ended | ||||||||||||||||||
3Q2024 | 2Q2024 | 3Q2023 | ||||||||||||||||
($ in thousands) |
Average Balance |
Interest and Fees |
Yield/
Rate(1)
|
Average Balance |
Interest and Fees |
Yield/
Rate(1)
|
Average Balance |
Interest and Fees |
Yield/
Rate(1)
|
|||||||||
Interest-earning assets: | ||||||||||||||||||
Interest-bearing deposits in other banks | $ | 109,003 | $ | 1,474 | 5.29 | % | $ | 135,984 | $ | 1,847 | 5.37 | % | $ | 82,752 | $ | 1,116 | 5.28 | % |
Federal funds sold and other investments | 16,432 | 314 | 7.65 | 16,307 | 315 | 7.72 | 16,176 | 301 | 7.44 | |||||||||
Available-for-sale debt securities, at fair value | 199,211 | 1,626 | 3.26 | 195,512 | 1,590 | 3.25 | 199,205 | 1,519 | 3.05 | |||||||||
CRE loans | 944,818 | 14,759 | 6.21 | 908,073 | 13,742 | 6.09 | 856,911 | 12,207 | 5.65 | |||||||||
SBA loans | 270,282 | 7,107 | 10.46 | 259,649 | 7,116 | 11.02 | 248,960 | 7,303 | 11.64 | |||||||||
C&I loans | 187,163 | 3,642 | 7.74 | 172,481 | 3,367 | 7.85 | 117,578 | 2,340 | 7.90 | |||||||||
Home mortgage loans | 503,148 | 6,364 | 5.06 | 501,862 | 6,348 | 5.06 | 516,465 | 6,393 | 4.95 | |||||||||
Consumer loans | 541 | 13 | 9.37 | 1,219 | 32 | 10.44 | 274 | 7 | 10.01 | |||||||||
Loans(2)
|
1,905,952 | 31,885 | 6.66 | 1,843,284 | 30,605 | 6.67 | 1,740,188 | 28,250 | 6.45 | |||||||||
Total interest-earning assets | 2,230,598 | 35,299 | 6.30 | 2,191,087 | 34,357 | 6.29 | 2,038,321 | 31,186 | 6.08 | |||||||||
Noninterest-earning assets | 88,747 | 89,446 | 84,580 | |||||||||||||||
Total assets | $ | 2,319,345 | $ | 2,280,533 | $ | 2,122,901 | ||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||
Money market deposits and others | $ | 343,429 | $ | 3,601 | 4.17 | % | $ | 338,554 | $ | 3,494 | 4.15 | % | $ | 352,424 | $ | 3,487 | 3.93 | % |
Time deposits | 1,127,078 | 14,320 | 5.05 | 1,102,587 | 13,849 | 5.05 | 869,675 | 9,519 | 4.34 | |||||||||
Total interest-bearing deposits | 1,470,507 | 17,921 | 4.85 | 1,441,141 | 17,343 | 4.84 | 1,222,099 | 13,006 | 4.22 | |||||||||
Borrowings | 80,326 | 872 | 4.32 | 77,314 | 820 | 4.27 | 79,891 | 867 | 4.31 | |||||||||
Total interest-bearing liabilities | 1,550,833 | 18,793 | 4.82 | 1,518,455 | 18,163 | 4.81 | 1,301,990 | 13,873 | 4.23 | |||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||
Noninterest-bearing deposits | 528,126 | 529,179 | 599,262 | |||||||||||||||
Other noninterest-bearing liabilities | 41,892 | 39,301 | 36,620 | |||||||||||||||
Total noninterest-bearing liabilities | 570,018 | 568,480 | 635,882 | |||||||||||||||
Shareholders' equity | 198,494 | 193,598 | 185,029 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 2,319,345 | 2,280,533 | 2,122,901 | ||||||||||||||
Net interest income / interest rate spreads | $ | 16,506 | 1.48 | % | $ | 16,194 | 1.48 | % | $ | 17,313 | 1.85 | % | ||||||
Net interest margin | 2.95 | % | 2.96 | % | 3.38 | % | ||||||||||||
Cost of deposits & cost of funds: | ||||||||||||||||||
Total deposits / cost of deposits | $ | 1,998,633 | $ | 17,921 | 3.57 | % | $ | 1,970,320 | $ | 17,343 | 3.54 | % | $ | 1,821,361 | $ | 13,006 | 2.83 | % |
Total funding liabilities / cost of funds | 2,078,959 | 18,793 | 3.60 | 2,047,634 | 18,163 | 3.57 | 1,901,252 | 13,873 | 2.90 | |||||||||
For the Nine Months Ended | ||||||||||||
3Q2024 | 3Q2023 | |||||||||||
($ in thousands) |
Average Balance |
Interest and Fees |
Yield/
Rate(1)
|
Average Balance |
Interest and Fees |
Yield/
Rate(1)
|
||||||
Interest-earning assets: | ||||||||||||
Interest-bearing deposits in other banks | $ | 106,022 | $ | 4,310 | 5.34 | % | $ | 78,736 | $ | 2,965 | 4.97 | % |
Federal funds sold and other investments | 16,335 | 951 | 7.76 | 14,575 | 721 | 6.59 | ||||||
Available-for-sale debt securities, at fair value | 195,383 | 4,676 | 3.19 | 206,448 | 4,647 | 3.00 | ||||||
CRE loans | 918,149 | 42,230 | 6.14 | 845,340 | 35,209 | 5.57 | ||||||
SBA loans | 263,126 | 21,436 | 10.88 | 262,130 | 21,459 | 10.94 | ||||||
C&I loans | 164,927 | 9,679 | 7.84 | 117,850 | 6,772 | 7.68 | ||||||
Home mortgage loans | 505,669 | 19,207 | 5.06 | 504,188 | 18,069 | 4.78 | ||||||
Consumer & other loans | 1,046 | 80 | 10.10 | 994 | 40 | 5.40 | ||||||
Loans(2)
|
1,852,917 | 92,632 | 6.68 | 1,730,502 | 81,549 | 6.30 | ||||||
Total interest-earning assets | 2,170,657 | 102,569 | 6.30 | 2,030,261 | 89,882 | 5.91 | ||||||
Noninterest-earning assets | 88,594 | 84,044 | ||||||||||
Total assets | $ | 2,259,251 | $ | 2,114,305 | ||||||||
Interest-bearing liabilities: | ||||||||||||
Money market deposits and others | $ | 349,766 | $ | 11,035 | 4.21 | % | $ | 373,041 | $ | 9,838 | 3.53 | % |
Time deposits | 1,061,609 | 39,904 | 5.02 | 833,603 | 25,470 | 4.09 | ||||||
Total interest-bearing deposits | 1,411,375 | 50,939 | 4.82 | 1,206,644 | 35,308 | 3.91 | ||||||
Borrowings | 88,743 | 2,951 | 4.44 | 63,078 | 2,117 | 4.49 | ||||||
Total interest-bearing liabilities | 1,500,118 | 53,890 | 4.80 | 1,269,722 | 37,425 | 3.94 | ||||||
Noninterest-bearing liabilities: | ||||||||||||
Noninterest-bearing deposits | 523,951 | 628,569 | ||||||||||
Other noninterest-bearing liabilities | 40,141 | 33,377 | ||||||||||
Total noninterest-bearing liabilities | 564,092 | 661,946 | ||||||||||
Shareholders' equity | 195,041 | 182,637 | ||||||||||
Total liabilities and shareholders' equity | $ | 2,259,251 | 2,114,305 | |||||||||
Net interest income / interest rate spreads | $ | 48,679 | 1.50 | % | $ | 52,457 | 1.97 | % | ||||
Net interest margin | 2.99 | % | 3.45 | % | ||||||||
Cost of deposits & cost of funds: | ||||||||||||
Total deposits / cost of deposits | $ | 1,935,326 | $ | 50,939 | 3.52 | % | 1,835,213 | $ | 35,308 | 2.57 | % | |
Total funding liabilities / cost of funds | 2,024,069 | 53,890 | 3.56 | 1,898,291 | 37,425 | 2.64 | ||||||