Yahoo Movies OP Bancorp Reports Net Income for 2022 Fourth Quarter of $8.0 Million and Diluted Earnings Per Share of $0.51
2022 Fourth Quarter Highlights compared with 2021 Fourth Quarter:
Financial Results:
Net income of $8.0 million, compared to $9.1 million
Diluted earnings per share of $0.51, compared to $0.59
Net interest income of $20.2 million, compared to $17.1 million
Net interest margin of 4.08%, compared to 4.07%
Provision for loan losses of $977 thousand, compared to $1.9 million
Total assets of $2.1 billion, a 21% increase compared to $1.7 billion
Total loans (1) of $1.7 billion, a 23% increase compared to $1.4 billion
Total deposits of $1.9 billion, a 23% increase compared to $1.5 billion
Noninterest-bearing deposits of $701.6 million, or 37.2% of total deposits
Credit Quality:
Allowance for loan losses to gross loans of 1.13%, compared to 1.23%
Net loan charge-offs to average gross loans of 0.03%, compared to 0.05%
Nonperforming loans to gross loans of 0.18%, compared to 0.24%
Criticized loans (2) to gross loans of 0.23%, compared to 0.31%
Capital Levels:
Quarterly cash dividend of $0.12 per share, a 20% increase from $0.10 per share
Remained well-capitalized with a Common Equity Tier 1 ("CET1") ratio of 11.70%.
Book value per common share of $11.59, compared to $10.92
___________________________________________________________
(1) Includes loans held for sale.
(2) Includes special mention, substandard, doubtful, and loss categories.
LOS ANGELES, January 26, 2023--(BUSINESS WIRE)--OP Bancorp (the "Company") (NASDAQ: OPBK), the holding company of Open Bank, today reported its financial results for the fourth quarter of 2022. Net income for the fourth quarter of 2022 was $8.0 million, or $0.51 per diluted common share, compared with $8.7 million, or $0.55 per diluted common share, for the third quarter of 2022, and $9.1 million, or $0.59 per diluted common share, for the fourth quarter of 2021.
Min Kim, President and Chief Executive Officer:
"Despite the challenging banking environment created by external headwinds related to prolonged inflation, Federal Reserve's drastic rate hikes, and economic slowdowns, we continued to report strong balance sheet growth with pristine asset quality. Based on the growth and strength of our balance sheet, we remain optimistic about future performance and will continue to focus on executing our strategic goals while maintaining appropriate risk and control environment."
SELECTED FINANCIAL HIGHLIGHTS
($ in thousands, except per share data) | As of and For the Three Months Ended | % Change 4Q22 vs. | ||||||||||||||||
4Q22 | 3Q22 | 4Q21 | 3Q22 | 4Q21 | ||||||||||||||
Selected Income Statement Data: | ||||||||||||||||||
Net interest income | $ | 20,198 | $ | 20,344 | $ | 17,096 | (0.7 | ) % | 18.1 | % | ||||||||
Provision for loan losses | 977 | 662 | 1,898 | 47.6 | (48.5 | ) | ||||||||||||
Noninterest income | 3,223 | 4,821 | 7,289 | (33.1 | ) | (55.8 | ) | |||||||||||
Noninterest expense | 11,327 | 12,338 | 9,591 | (8.2 | ) | 18.1 | ||||||||||||
Income tax expense | 3,089 | 3,515 | 3,762 | (12.1 | ) | (17.9 | ) | |||||||||||
Net Income | $ | 8,028 | $ | 8,650 | $ | 9,134 | (7.2 | ) % | (12.1 | ) % | ||||||||
Diluted earnings per share | $ | 0.51 | $ | 0.55 | $ | 0.59 | (7.3 | ) % | (13.6 | ) % | ||||||||
Selected Balance Sheet Data: | ||||||||||||||||||
Total loans (1) | $ | 1,722,627 | $ | 1,654,660 | $ | 1,403,447 | 4.1 | % | 22.7 | % | ||||||||
Total deposits | $ | 1,885,771 | $ | 1,816,811 | $ | 1,534,066 | 3.8 | % | 22.9 | % | ||||||||
Total assets | $ | 2,094,293 | $ | 2,029,575 | $ | 1,726,691 | 3.2 | % | 21.3 | % | ||||||||
Average loans (1) | $ | 1,691,642 | $ | 1,614,000 | $ | 1,343,414 | 4.8 | % | 25.9 | % | ||||||||
Average deposits | $ | 1,836,736 | $ | 1,753,726 | $ | 1,545,799 | 4.7 | % | 18.8 | % | ||||||||
Credit Quality: | ||||||||||||||||||
Nonperforming loans | $ | 3,080 | $ | 2,251 | $ | 3,200 | 36.8 | % | (3.8 | ) % | ||||||||
Net charge-offs (recoveries) to average gross loans (2) | 0.03 | % | (0.00 | ) % | 0.05 | % | 0.03 | % | (0.02 | ) % | ||||||||
Allowance for loan losses to gross loans | 1.13 | % | 1.14 | % | 1.23 | % | (0.01 | ) % | (0.10 | ) % | ||||||||
Financial Ratios: | ||||||||||||||||||
Return on average assets (2) | 1.56 | % | 1.77 | % | 2.11 | % | (0.21 | ) % | (0.55 | ) % | ||||||||
Return on average equity (2) | 18.58 | % | 19.91 | % | 22.68 | % | (1.33 | ) % | (4.10 | ) % | ||||||||
Net interest margin (2) | 4.08 | % | 4.31 | % | 4.07 | % | (0.23 | ) % | 0.01 | % | ||||||||
Common equity tier 1 capital ratio | 11.70 | % | 11.92 | % | 12.42 | % | (0.22 | ) % | (0.72 | ) % | ||||||||
Leverage ratio | 9.38 | % | 9.52 | % | 9.58 | % | (0.14 | ) % | (0.20 | ) % | ||||||||
Efficiency ratio (3) | 48.36 | % | 49.03 | % | 39.34 | % | (0.67 | ) % | 9.02 | % | ||||||||
Book value per common share | $ | 11.59 | $ | 11.19 | $ | 10.92 | 3.6 | % | 6.1 | % | ||||||||
(1) | Includes loans held for sale. |
(2) | Annualized. |
(3) | Represents noninterest expense divided by the sum of net interest income and noninterest income. |
INCOME STATEMENT HIGHLIGHTS
Net Interest Income and Net Interest Margin
($ in thousands) | For the Three Months Ended | % Change 4Q22 vs. | |||||||||||||
4Q22 | 3Q22 | 4Q21 | 3Q22 | 4Q21 | |||||||||||
Interest Income | |||||||||||||||
Interest income | $ | 26,886 | $ | 23,234 | $ | 17,822 | 15.7 | % | 50.9 | % | |||||
Interest expense | 6,688 | 2,890 | 726 | 131.4 | 821.2 | ||||||||||
Net interest income | $ | 20,198 | $ | 20,344 | $ | 17,096 | (0.7 | ) % | 18.1 | % | |||||
($ in thousands) | For the Three Months Ended | |||||||||||||||||
4Q22 | 3Q22 | 4Q21 | ||||||||||||||||
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 | ||||||||||||||||||
Loans | $ 1,691,642 | $ 24,719 | 5.81 % | $ 1,614,000 | $ 21,780 | 5.36 % | $ 1,343,414 | $ 17,271 | 5.10 % | |||||||||
Total interest-earning assets | $ 1,966,165 | $ 26,886 | 5.43 % | $ 1,874,516 | $ 23,234 | 4.92 % | $ 1,668,865 | $ 17,822 | 4.24 % | |||||||||
Interest-bearing Liabilities | ||||||||||||||||||
Interest-bearing deposits | $ 1,085,331 | $ 6,598 | 2.41 % | $ 947,437 | $ 2,889 | 1.21 % | $ 780,787 | $ 726 | 0.37 % | |||||||||
Total interest-bearing liabilities | $ 1,093,489 | $ 6,688 | 2.43 % | $ 947,567 | $ 2,890 | 1.21 % | $ 780,791 | $ 726 | 0.37 % | |||||||||
Ratios | ||||||||||||||||||
Net interest Income/interest rate spreads | $ 20,198 | 3.01 % | $ 20,344 | 3.71 % | $ 17,096 | 3.87 % | ||||||||||||
Net interest margin | 4.08 % | 4.31 % | 4.07 % | |||||||||||||||
Total deposits / cost of deposits | $ 1,836,736 | $ 6,598 | 1.43 % | $ 1,753,726 | $ 2,889 | 0.65 % | $ 1,545,799 | $ 726 | 0.19 % | |||||||||
Total funding liabilities / cost of funds | $ 1,844,894 | $ 6,688 | 1.44 % | $ 1,753,856 | $ 2,890 | 0.65 % | $ 1,545,803 | $ 726 | 0.19 % | |||||||||
(1) | Annualized. |
($ in thousands) | For the Three Months Ended | Yield Change 4Q22 vs. | |||||||||||||||||||||||||
4Q22 | 3Q22 | 4Q21 | |||||||||||||||||||||||||
Interest & Fees | Yield (1) | Interest & Fees | Yield (1) | Interest & Fees | Yield (1) | 3Q22 | 4Q21 | ||||||||||||||||||||
Loan Yield Component | |||||||||||||||||||||||||||
Contractual interest rate | $ | 23,694 | 5.57 | % | $ | 20,419 | 5.02 | % | $ | 14,509 | 4.29 | % | 0.55 | % | 1.28 | % | |||||||||||
SBA discount accretion | 1,034 | 0.24 | 1,336 | 0.33 | 1,571 | 0.46 | (0.09 | ) | (0.22 | ) | |||||||||||||||||
Amortization of net deferred fees | 46 | 0.01 | 122 | 0.03 | 1,087 | 0.32 | (0.02 | ) | (0.31 | ) | |||||||||||||||||
Amortization of premium | (344 | ) | (0.08 | ) | (250 | ) | (0.06 | ) | 3 | — | (0.02 | ) | (0.08 | ) | |||||||||||||
Net interest recognized on nonaccrual loans | — | — | ... | ||||||||||||||||||||||||
