OP Bancorp (NASDAQ: OPBK)

OP Bancorp is a bank holding company headquartered in Los Angeles California. The company conducts its commercial community banking activities through its wholly owned banking subsidiary Open Bank. It does not engage in material business operations outside of the bank. OP Bancorp operates twelve full service branches: nine in Los Angeles and Orange Counties, one each in Santa Clara California, Carrollton Texas, and Las Vegas Nevada. It also maintains five loan production offices located in Pleasanton California, Atlanta Georgia, Aurora Colorado, Lynnwood Washington, and Fairfax Virginia. The bank’s primary focus is serving small and medium sized businesses, their owners and retail customers within the Korean American communities of its market areas.

Revenue is generated primarily from net interest income, which equals interest earned on loans and related products less interest paid on deposits and other borrowings. The company also earns fee income from deposit services and gains from the sale and servicing of SBA loans. Its loan portfolio consists of commercial real estate loans, SBA loans, commercial and industrial loans, and home mortgage loans. Deposits are gathered through its branch network and provide the main source of funding for lending activities. As of September 30 2025, gross loans totaled $2,151,217,000, with commercial real estate representing 51% of the portfolio, home mortgage loans 27%, SBA loans 11%, and commercial and industrial loans 10%. Deposits reached $2,273,417,000, of which noninterest bearing demand deposits accounted for 24% and interest bearing deposits made up 76%.

OP Bancorp competes in the banking industry alongside other community banks and national financial institutions. The bank has consistently exceeded regulatory capital requirements and was classified as well capitalized under the prompt corrective action framework as of September 30 2025. Its Tier 1 leverage ratio stood at 9.01%, the common equity tier 1 capital ratio at 10.92%, and the total risk based capital ratio at 12.17%. A competitive advantage arises from its concentrated focus on the Korean American community, which generates a stable and loyal deposit base. The bank’s status as an SBA Preferred Lender enables it to offer specialized lending products that serve small businesses effectively. Additionally, its branch network spanning California, Texas and Nevada and its loan production offices in several states provide geographic reach that supports relationship banking.

The bank serves small and medium sized businesses, their owners and retail customers. Its primary customers are members of the Korean American community located in Los Angeles, Orange County, Santa Clara, Carrollton and Las Vegas. Additionally, it serves customers through loan production offices in Pleasanton, Atlanta, Aurora, Lynnwood and Fairfax. The bank relies on locally generated deposits, mostly from the Korean American market within California, to fund its loan activities. No specific customer names are disclosed in the filing.