OP Bancorp Reports Unaudited Earnings Results for the Fourth Quarter and Year Ended December 31, 2017; Reports Net Charge-Offs for the Fourth Quarter Ended December 31, 2017
January 30, 2018 at 10:00 am
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OP Bancorp reported unaudited earnings results for the fourth quarter and year ended December 31, 2017. For the quarter, the company reported interest income of $11,077,000, net interest income of $9,701,000, income before income taxes of $5,086,000, net income of $1,900,000 or $0.13 per diluted share, return on average assets of 0.87% and return on average equity of 8.33% compared to the interest income of $8,766,000, net interest income of $7,879,000, income before income taxes of $3,661,000, net income of $2,254,000 or $0.16 per diluted share, return on average assets of 1.21% and return on average equity of 11.27% for the same quarter a year ago. The increase in net interest income was primarily due to a 15.2% increase in average loans, including loans held-for-sale, coupled with a 53 basis point increase in average loan yields from 5.10% for the fourth quarter of 2016, offset by an 18 basis point increase in average cost of funds.
For the year, the company reported interest income of $40,283,000, net interest income of $35,710,000, income before income taxes of $17,128,000, net income of $9,236,000 or $0.66 per diluted share, return on average assets of 1.13% and return on average equity of 10.63% compared to the interest income of $31,701,000, net interest income of $28,330,000, income before income taxes of $12,321,000, net income of $7,427,000 or $0.53 per diluted share, return on average assets of 1.08% and return on average equity of 9.69% for the same period a year ago. Book Value per share was $6.94 as on December 31, 2017 against $6.30 as on December 31, 2016.
For the quarter, the company reported net charge-offs of $92,000 against $71,000 a year ago.
OP Bancorp is the holding company for Open Bank (the Bank). The Bank is engaged in commercial banking business in Los Angeles, Orange, and Santa Clara Counties in California, the Dallas metropolitan area in Texas, and Clark County in Nevada. The Bank is focused on serving the banking needs of small- and medium-sized businesses, professionals, and residents with a particular emphasis on Korean and other ethnic minority communities. The Bankâs lending activities are diversified and include commercial real estate, commercial and industrial, small business administration (SBA), home mortgage, and consumer loans. The Bank attracts retail deposits through its branch network which offers a range of deposit products for business and consumer banking customers. The Bank operates about 11 full-service branch offices in Downtown Los Angeles, Los Angeles Fashion District, Los Angeles Koreatown, Cerritos, Gardena, Buena Park, and Santa Clara, California, Carrollton, Texas and Las Vegas, Nevada.
OP Bancorp Reports Unaudited Earnings Results for the Fourth Quarter and Year Ended December 31, 2017; Reports Net Charge-Offs for the Fourth Quarter Ended December 31, 2017