compared with first quarter 2026 net income of $7.2 million, diluted EPS of $0.48, and second quarter 2025 net income of $6.3 million, diluted EPS of $0.42

Revenue growth; reversal of provision for credit losses; improved operating efficiency

OP Bancorp (the "Company") (NASDAQ:OPBK), parent company of Open Bank, today reported:


($ in thousands, except per share data)	As of and For the Quarter									First Quarter Highlights
($ in thousands, except per share data)	2Q2026			1Q2026			2Q2025			Comparisons reflect 2Q26 vs. 1Q26
Income Statement:										Income Statement
Net interest income	$	20,068		$	20,523		$	19,721		Revenue continued to grow. Reversal of provision reflected the payoff of a previously reserved nonaccrual CRE loan. Net income increased 10%, benefiting from strong revenue growth and reversal of provision. Diluted EPS improved by $0.05 to $0.53. Net interest margin decreased due to a one-time accrual adjustment related to Federal Reserve account.
Noninterest income		5,651			4,032			3,968
Revenue		25,719			24,555			23,689
(Reversal of) provision for credit losses		(149	)		412			1,206
Noninterest expense		14,826			14,233			14,037
Net income	$	7,978		$	7,234		$	6,333
Diluted Earnings Per Share ("EPS")	$	0.53		$	0.48		$	0.42
Net interest margin ⁽¹⁾		3.08	%		3.19	%		3.23	%
Efficiency ratio ⁽²⁾		57.64			57.97			59.25
Balance Sheet:										Balance Sheet
Average loans ⁽³⁾	$	2,253,270		$	2,226,749		$	2,095,168		Average loans increased 1%.
Average deposits		2,315,821			2,300,455			2,223,575		Average deposits increased 1%.
Credit Quality:										Credit Quality
Net charge-offs (recoveries) ⁽¹⁾ to average gross loans		0.03	%		(0.01	)%		0.06	%	Net charge-offs remained low.
Allowance for credit losses on loans to gross loans		1.24			1.27			1.27		Allowance coverage remained robust at 1.24% of gross loans.
Selected Ratios:										Performance and Capital
Book value per share	$	15.99		$	15.62		$	14.36		Book value per share continued to increase, reflecting growth in stockholders’ equity.
Return on average assets ("ROAA") ⁽¹⁾		1.18	%		1.08	%		1.00	%	ROAA and ROAE improved, reflecting stronger profitability
Return on average equity ("ROAE") ⁽¹⁾		13.61			12.56			11.97		ROAA and ROAE improved, reflecting stronger profitability
Stockholders' equity to asset ratio		8.70			8.62			8.34		Stockholders’ equity to asset increased, supporting the Company’s capital strength.
Common equity tier 1 capital ("CET1")		10.98			10.83			11.01		CET1 remained robust, reflecting a solid capital position.

(1)		Annualized.
(2)		Represents noninterest expense divided by the sum of net interest income and noninterest income.
(3)		Includes loans held-for-sale.

Sang K. Oh, President and Chief Executive Officer:

"We delivered another quarter of strong financial performance, highlighted by net income of $8.0 million and diluted EPS of $0.53. Our results were driven by continued revenue growth, a reversal of provision for credit losses reflecting the strength of our credit portfolio, and ongoing improvements in operating efficiency. We also maintained solid balance sheet growth, with increases in both loans and deposits, while preserving strong asset quality and capital levels. As we enter the second half of 2026, we remain committed to driving sustainable growth while maintaining disciplined risk management and operating efficiency," said Sang K. Oh, President and Chief Executive Officer.

INCOME STATEMENT HIGHLIGHTS

Net Interest Income and Net Interest Margin


($ in thousands)	For the Three Months Ended						% Change 2Q2026 vs.
($ in thousands)	2Q2026		1Q2026		2Q2025		1Q2026		2Q2025
Interest Income
Interest income	$	38,193	$	38,537	$	37,665	(1	)%	1	%
Interest expense		18,125		18,014		17,944	1		1
Net interest income	$	20,068	$	20,523	$	19,721	(2	)%	2	%


($ in thousands)	For the Three Months Ended												Average Yield/Rate Change 2Q2026 vs.
	2Q2026				1Q2026				2Q2025				Average Yield/Rate Change 2Q2026 vs.
	Interest Income/Expense		Average Yield/Rate⁽¹⁾		Interest Income/Expense		Average Yield/Rate⁽¹⁾		Interest Income/Expense		Average Yield/Rate⁽¹⁾		1Q2026	2Q2025
Interest-earning Assets:
Loans	$	35,731	6.36	%	$	34,879	6.33	%	$	34,263	6.56	%	3 bps	(20) bps
Total interest-earning assets		38,193	5.87			38,537	6.00			37,665	6.18		(13) bps	(31) bps
Interest-bearing Liabilities:
Interest-bearing deposits		16,891	3.77			16,845	3.83			17,475	4.18		(6) bps	(41) bps
Total interest-bearing liabilities		18,125	3.82			18,014	3.88			17,944	4.18		(6) bps	(36) bps
Ratios:
Net interest income / interest rate spreads		20,068	2.05			20,523	2.12			19,721	2.00		(7) bps	5 bps
Net interest margin			3.08				3.19				3.23		(11) bps	(15) bps
Total deposits / cost of deposits		16,891	2.93			16,845	2.97			17,475	3.15		(4) bps	(22) bps
Total funding liabilities / cost of funds		18,125	3.00			18,014	3.04			17,944	3.17		(4) bps	(17) bps

(1)		Annualized.


($ in thousands)	For the Three Months Ended															Average Yield Change 2Q2026 vs.
	2Q2026					1Q2026					2Q2025					Average Yield Change 2Q2026 vs.
	Interest Income			Average Yield ⁽¹⁾		Interest Income			Average Yield ⁽¹⁾		Interest Income			Average Yield ⁽¹⁾		1Q2026	2Q2025
Loan Yield Component:
Contractual interest rate	$	35,335		6.29	%	$	34,254		6.22	%	$	33,304		6.37	%	7 bps	(8) bps
Accretion of SBA loan discount ⁽²⁾		687		0.12			815		0.15			785		0.15		(3) bps	(3) bps
Amortization of net deferred fees		64		0.01			127		0.02			(60	)	(0.01	)	(1) bps	2 bps
Amortization of premium		(293	)	(0.05	)		(312	)	(0.06	)		(329	)	(0.06	)	1 bps	1 bps
Amortization of premium - Home mortgage payoffs		(173	)	(0.03	)		(186	)	(0.03	)		(63	)	(0.01	)	— bps	(2) bps
Net interest recognized on nonaccrual loans		(68	)	(0.01	)		(94	)	(0.02	)		295		0.06		1 bps	(7) bps
Prepayment penalty income and other fees ⁽³⁾		179		0.03			275		0.05			331		0.06		(2) bps	(3) bps
Yield on loans	$	35,731		6.36	%	$	34,879		6.33	%	$	34,263		6.56	%	3 bps	(20) bps

(1)		Annualized.
(2)		Includes discount accretion from Small Business Administration ("SBA") loan payoffs of $232 thousand, $370 thousand and $293 thousand for the three months ended June 30, 2026, March 31, 2026 and June 30, 2025, respectively.
(3)		Includes prepayment penalty income of $91 thousand, $98 thousand and $166 thousand for the three months ended June 30, 2026, March 31, 2026 and June 30, 2025, respectively, primarily from Commercial Real Estate ("CRE") and SBA loans.

Second Quarter 2026 vs. First Quarter 2026

Net interest income declined by $455 thousand, or 2%, primarily reflecting a one-time interest accrual adjustment related to the Federal Reserve Bank account and the absence of a special FHLB dividend recognized in the prior period. These decreases were partially offset by continued loan growth. As a result, the net interest margin contracted by 11 basis points to 3.08%.

Interest-bearing deposits in other banks: Interest income decreased by $910 thousand, primarily due to a one-time $739 thousand accrual adjustment on the Federal Reserve Bank account.
Other investments: Interest income decreased by $349 thousand, mainly due to the absence of a special dividend received on FHLB stock in the prior period.
Loans: Interest income increased by $852 thousand, driven largely by a $26.5 million increase in average loan balances, reflecting growth in SBA and CRE loans, as well as two additional accrual days during the current period.
Deposits: Interest expense remained relatively stable compared to the prior period.

Second Quarter 2026 vs. Second Quarter 2025

Net interest income increased by $347 thousand, or 2%, primarily driven by balance-sheet growth and lower deposit rates. These favorable factors were partially offset by lower loan yields, reduced interest income on interest-bearing deposits in other banks resulting from the aforementioned Federal Reserve Bank interest accrual adjustment and lower interest rates, and higher interest expense associated with the subordinated note issued in November 2025. As a result, the net interest margin declined by 15 basis points to 3.08%.

Loans: Interest income increased by $1.5 million, largely attributable to a $158.1 million increase in average loan balances, reflecting growth in CRE loans. The increase was partially offset by a 20-basis-point decline in loan yields, reflecting the downward repricing of adjustable-rate loans and lower rates on new originations following last year’s federal funds rate cuts, as well as the absence of elevated interest income recognized from nonaccrual loans in the prior period.
Deposits: Interest expense decreased by $584 thousand, mainly due to a 41-basis-point decline in costs of interest-bearing deposits, driven by the repricing of time deposits following the federal funds rate cuts. This decrease was partially offset by a $121.6 million increase in average interest-bearing deposit balances, reflecting growth in time deposits.
Interest-bearing deposits in other banks: Interest income decreased by $1.2 million, primarily due to the aforementioned accrual adjustment on the Federal Reserve Bank account, as well as lower yields on Federal Reserve Bank balances.
Subordinated note: Interest expense increased by $490 thousand, mainly due to the subordinated note issued in November 2025.

Provision for Credit Losses


($ in thousands)	For the Three Months Ended								$ Change 2Q2026 vs.
($ in thousands)	2Q2026			1Q2026		2Q2025			1Q2026			2Q2025
(Reversal of) provision for credit losses on loans	$	(131	)	$	400	$	1,255		$	(531	)	$	(1,386	)
(Reversal of) provision for credit losses on off-balance sheet exposure		(18	)		12		(49	)		(30	)		31
(Reversal of) provision for credit losses	$	(149	)	$	412	$	1,206		$	(561	)	$	(1,355	)

Second Quarter 2026 vs. First Quarter 2026

Provision for credit losses on loans decreased by $531 thousand, primarily due to the payoff of a previously reserved nonaccrual CRE loan, resulting in the reversal of a $761 thousand specific reserve recorded in the first quarter of 2026.

Second Quarter 2026 vs. Second Quarter 2025

Provision for credit losses on loans decreased by $1.4 million, primarily due to the aforementioned payoff of the nonaccrual CRE loans, as well as lower qualitative reserves driven by slower home mortgage loan growth and a more favorable economic outlook compared to a year ago.

Noninterest Income


($ in thousands)	For the Three Months Ended						% Change 2Q2026 vs.
($ in thousands)	2Q2026		1Q2026		2Q2025		1Q2026		2Q2025
Noninterest Income
Service charges on deposits	$	515	$	463	$	1,017	11	%	(49	)%
Loan servicing fees, net of amortization		974		722		900	35		8
Gains on sale of loans		3,370		2,050		1,441	64		134
Other income		792		797		610	(1	)	30
Total noninterest income	$	5,651	$	4,032	$	3,968	40	%	42	%

Second Quarter 2026 vs. First Quarter 2026

Noninterest income increased by $1.6 million, or 40%, primarily driven by higher gains on sale of loans and loan servicing fees.

Gains on Sale of Loans: Increased by $1.3 million, driven by stronger SBA loan sale activity. The Bank sold $49.1 million in SBA loans at an average premium rate of 8.17%, compared with $32.2 million sold at an average premium rate of 8.27% in the prior period.
Loan servicing fees, net of amortization: Increased by $252 thousand, mainly due to lower amortization of servicing assets resulting from reduced payoff activity.

Second Quarter 2026 vs. Second Quarter 2025

Noninterest income increased by $1.7 million, or 42%, primarily due to higher gains on sale of loans, partially offset by lower service charges on deposits.

Gains on Sale of Loans: Increased by $1.9 million, driven by stronger SBA loan sale activity and higher premium rates. The Bank sold $49.1 million in SBA loans at an average premium rate of 8.17%, compared with $25.3 million sold at an average premium rate of 7.05% in the prior period.
Service Charges on Deposits: Decreased by $502 thousand, largely reflecting lower balances in existing business analysis accounts and closure of certain currency exchange-related accounts during the third quarter of 2025.

Noninterest Expense


($ in thousands)	For the Three Months Ended						% Change 2Q2026 vs.
($ in thousands)	2Q2026		1Q2026		2Q2025		1Q2026		2Q2025
Noninterest Expense
Salaries and employee benefits	$	9,733	$	9,276	$	9,075	5	%	7	%
Occupancy and equipment		1,901		1,811		1,584	5		20
Data processing and communication		380		411		306	(8	)	24
Professional fees		454		399		418	14		9
FDIC insurance and regulatory assessments		387		418		506	(7	)	(24	)
Promotion and advertising		104		120		232	(13	)	(55	)
Directors’ fees		164		144		198	14		(17	)
Foundation donation and other contributions		811		725		636	12		28
Other expenses		892		929		1,082	(4	)	(18	)
Total noninterest expense	$	14,826	$	14,233	$	14,037	4	%	6	%

Second Quarter 2026 vs. First Quarter 2026

Noninterest expense increased by $593 thousand, or 4%, primarily due to higher salaries and employee benefits.

Salaries and Employee Benefits: Increased by $457 thousand, primarily due to annual salary adjustments effective April 2026 and higher incentive accruals driven by increased loan production, partially offset by lower vacation accruals.

Second Quarter 2026 vs. Second Quarter 2025

Noninterest expense increased by $789 thousand, or 6%, primarily due to higher salaries and employee benefits, and increased occupancy and equipment, partially offset by lower other expenses.

Salaries and Employee Benefits: Increased by $658 thousand, mainly driven by staffing growth and annual salary adjustments effective April 2026.
Occupancy and equipment: Increased by $317 thousand, primarily due to the expiration of a common-area-maintenance concession on a lease that benefited the prior period.
Other expenses: Decreased by $190 thousand, primarily due to lower customer service expense following the previously discussed currency exchange account closures.

Income Tax Expense

Second Quarter 2026 vs. First Quarter 2026

Income tax expense increased by $388 thousand to $3.1 million, primarily due to higher pre-tax income, while the effective tax rate increased modestly to 27.8% from 27.0%.

Second Quarter 2026 vs. Second Quarter 2025

Income tax expense increased by $951 thousand to $3.1 million, primarily due to higher pre-tax income. The effective tax rate increased to 27.8% from 25.0%, mainly reflecting the absence of a one-time deferred tax asset revaluation recognized in the prior-year period and the impact of federal tax law changes effective in 2026.

BALANCE SHEET HIGHLIGHTS

Loans


($ in thousands)	As of						% Change 2Q2026 vs.
($ in thousands)	2Q2026		1Q2026		2Q2025		1Q2026		2Q2025
CRE	$	1,190,117	$	1,173,366	$	1,021,431	1	%	17	%
SBA		278,554		284,182		263,424	(2	)	6
C&I		221,623		219,367		193,359	1		15
Home mortgage		568,512		556,952		593,256	2		(4	)
Consumer & other		255		392		110	(35	)	132
Gross loans	$	2,259,061	$	2,234,259	$	2,071,580	1	%	9	%

The following table presents loan originations and the corresponding weighted average contractual rates for the periods indicated:


($ in thousands)	For the Three Months Ended												% Change in Amounts 2Q2026 vs.
	2Q2026				1Q2026				2Q2025				1Q2026		2Q2025
	Amount		Rate		Amount		Rate		Amount		Rate		1Q2026		2Q2025
CRE	$	92,042	6.78	%	$	83,333	6.48	%	$	39,734	7.00	%	10	%	132	%
SBA		32,403	7.94			33,528	7.99			33,811	8.64		(3	)	(4	)
C&I		8,321	7.28			8,489	7.00			3,136	7.72		(2	)	165
Home mortgage		36,574	5.94			7,059	6.03			54,837	6.64		418		(33	)
Consumer and other		—	—			—	—			—	—		—		—
Gross loans ⁽¹⁾	$	169,340	6.85	%	$	132,409	6.87	%	$	131,518	7.29	%	28	%	29	%

(1)

Excludes changes in line utilization.

The following table summarizes the loan activity for the periods indicated:


($ in thousands)	For the Three Months Ended
($ in thousands)	2Q2026			1Q2026			2Q2025
Beginning Balance	$	2,234,259		$	2,193,669		$	2,043,885
Originations		169,340			132,409			131,518
Net change in line utilization		35,399			28,712			27,287
Purchases		5,426			—			1,750
Sales		(51,907	)		(29,438	)		(26,734	)
Payoffs & paydowns		(123,664	)		(98,703	)		(91,437	)
Other		(9,792	)		7,610			(14,689	)
Total		24,802			40,590			27,695
Ending balance	$	2,259,061		$	2,234,259		$	2,071,580

The following table presents the composition of gross loans by interest rate type accompanied by the weighted average contractual rates as of the periods indicated:


($ in thousands)	As of
	2Q2026				1Q2026				2Q2025
	%		Rate		%		Rate		%		Rate
Fixed rate	28	%	5.77	%	29	%	5.70	%	31	%	5.54	%
Hybrid rate	41		6.05		40		6.00		40		5.81
Variable rate	31		6.90		31		6.86		29		8.16
Gross loans	100	%	6.24	%	100	%	6.18	%	100	%	6.42	%

The following table presents the maturity of gross loans by interest rate type accompanied by the weighted average contractual rates for the periods indicated:

($ in thousands)

As of June 30, 2026

Within One Year

One Year Through Five Years

After Five Years

Total

Amount

Rate

Amount

Rate

Amount

Rate