OP Bancorp

08/06/2012 | Press release | Archived content

Second Quarter 2012 OPBK Earnings Release

LOS ANGELES--(BUSINESS WIRE)-- Open Bank (OTCBB:OPBK) today announced a net income of $564 thousand for the second quarter of 2012 and $4.8 million for the six months ended June 30, 2012, compared to $773 thousand for the second quarter of 2011 and $1.1 million for the six months ended June 30, 2011.

Min Kim, President and Chief Executive Officer, said, "We are pleased to announce another solid quarter of profit. Our focus on building new customer relationships through core deposits, improving asset quality and controlling costs is continuing to pay off. We are also extremely excited about the opening of our second Los Angeles branch. Our new Fashion District branch is designed to offer our customers increased convenience and will allow us to grow our business."

Second Quarter 2012 Highlights:

  • Net income of $564 thousand for the three months ended June 30, 2012.
  • Net income of $4.8 million for the six months ended June 30, 2012. Reversal of valuation allowance on DTA of $4 million included.
  • Net interest margin was 4.93% for the second quarter of 2012, compared to 4.42% for the second quarter of 2011.
  • Demand deposits increased 31.97% to $44.2 million representing 35.57% of total deposits of $124.2 million at June 30, 2012, from $33.5 million, 27.61% of total deposits of $121.3 million, at December 31, 2011.
  • Allowance for Loan Losses to Gross Loans was 3.39% at June 30, 2012.
  • The Total risk-based capital ratio, tier 1 capital ratio and tier 1 leverage ratio were 18.63%, 17.36% and 16.09%, respectively at June 30, 2012.

About Open Bank

Open Bank (the "Bank") is engaged in the general commercial banking business in Los Angeles County and is focused on serving the banking needs of small- and medium-sized businesses, professionals, and residents with a particular emphasis on the Korean and other ethnic minority communities. The Bank commenced its operations on June 10, 2005 as First Standard Bank and changed its name to Open Bank on September 20, 2010. Its headquarters are located at 1000 Wilshire Blvd., Suite 100 Los Angeles, California 90017. Phone 213.892.9999; www.myopenbank.comMember FDIC, Equal Housing Lender

Safe Harbor

This press release contains certain forward-looking information about Open Bank that is intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. These forward-looking statements may include, but are not limited to, such words as "believes," "expects," "anticipates," "intends," "plans," "estimates," "may," "will," "should," "could," "predicts," "potential," "continue," or the negative of such terms and other comparable terminology or similar expressions and may include statements about the bank's focus on exploring new opportunities, customer relationship, growing core deposits, and improving asset quality . Forward-looking statements are not guarantees. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of Open Bank. Open Bank cautions readers that a number of important factors could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements. If any of these risks or uncertainties materializes or if any of the assumptions underlying such forward-looking statements proves to be incorrect, Open Bank's results could differ materially from those expressed in, or implied or projected by such forward-looking statements. Open Bank assumes no obligation to update such forward-looking statements, except as required by law.

Balance Sheet
(Dollars in thousand, except per share data) June 30, 2012 December 31, 2011 June 30, 2011
(Unaudited) (Audited) (Unaudited)
Assets
Cash and due from banks $ 10,926 $ 19,595 $ 23,358
Federal fund sold/overnight investment - - 4,300
Investment securities 9,045 10,023 4,994
Loans held for sale 2,912 2,892 8,139
Loans receivable 114,068 103,688 90,918
Allowance for loan losses 4,104 4,939 4,158
Net loans 116,980 106,580 99,057
Bank premises and equipment, net 337 331 334
Accrued interest receivable 484 451 386
FHLB and Pacific Coast Bankers Bank Stock, at cost 813 732 737
Servicing assets 2,012 1,467 985
Net deferred taxes 4,000 - -
Other assets 4,648 3,204 973
Total Assets $ 149,246 $ 142,383 $ 135,124
Liabilities and Shareholders' Equity
Noninterest bearing demand $ 44,190 $ 33,484 $ 28,616
Savings 868 2,518 2,377
Money market and others 36,829 40,055 28,101
Time deposits of $100,000 or more 24,363 21,616 24,440
Other time deposits 17,977 23,608 30,664
Total deposits 124,227 121,281 114,198
Other liabilities 594 1,683 2,035
Total liabilities 124,821 122,965 116,233
Total shareholders' equity 24,425 19,418 18,892
Total Liabilities and Shareholders' Equity $ 149,246 $ 142,383 $ 135,124
Statement of Operations
(Dollars in thousand, except per share data)
Three months ended Six months ended
June 30, 2012 June 30, 2011 June 30, 2012 June 30, 2011
Interest income $ 1,755 $ 1,668 $ 3,399 $ 3,319
Interest expense 176 311 401 636
Net interest income 1,579 1,357 2,998 2,683
Provision for loan losses 716 199 1,073 780
Non interest income 1,626 1,730 2,702 3,043
Non interest expense 1,925 2,049 3,784 3,709
Income before income taxes 564 839 843 1,237
Provision for income taxes - 67 (4,000 ) 108
Net income (loss) $ 564 $ 773 $ 4,843 $ 1,129
Book Value $ 3.42 $ 2.64 $ 3.42 $ 2.64
Basic EPS $ 0.08 $ 0.11 $ 0.68 $ 0.17
Diluted EPS $ 0.06 $ 0.09 $ 0.52 $ 0.14
Key Ratios
Return on average assets (ROA)* 1.57 % 2.39 % 6.86 % 1.80 %
ROA, excluding tax benefit * 1.57 % 2.39 % 1.19 % 1.80 %
Return on average equity (ROE) * 9.41 % 17.03 % 44.44 % 13.68 %
ROE, excluding tax benefit * 11.29 % 17.03 % 8.54 % 13.68 %
Net interest margin * 4.93 % 4.42 % 4.69 % 4.48 %
Efficiency ratio 77.34 % 70.94 % 81.77 % 74.99 %
Tier 1 leverage 16.09 % 14.54 % 16.09 % 14.54 %
Tier 1 risk-based capital 17.36 % 18.13 % 17.36 % 18.13 %
Total risk-based capital 18.63 % 19.41 % 18.63 % 19.41 %
Asset Quality 6/30/2012 3/31/2012 12/31/2011 9/30/2011 6/30/2011
Loans 90 days or more past due, accruing - - - - -
Nonaccrual Loans 897 5,078 4,826 2,613 502
Total Non-Performing Loans 897 5,078 4,826 2,613 502
Other Real Estate Loans (OREO) - - - - -
Accruing Restructured Loans 1,071 1,086 2,061 2,116 2,238
Total Non-Performing Assets 1,968 6,164 6,887 4,729 2,740
Non-Performing Loans/Total Loans 0.76 % 4.78 % 4.65 % 2.55 % 0.53 %
Non-Performing Assets/Total Assets 1.32 % 4.30 % 4.84 % 3.47 % 2.03 %
Allowance for Loan Losses/Gross Loans 3.47 % 4.31 % 4.76 % 4.47 % 4.37 %
Allowance for Loan Losses/Non-Performing Loans 458 % 90 % 102 % 175 % 828 %
YTD Net Charge-offs $ 1,908 $ 724 $ 1,344 $ 1,001 $ 743
YTD Net Charge-offs to Average Loans * 6.51 % 2.56 % 1.22 % 1.23 % 1.49 %
* Annualized

Open Bank
Christine Oh, 213.892.1192
[email protected]

Source: Open Bank

OP Bancorp published this content on August 06, 2012, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on October 21, 2025 at 18:39 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]