OP Bancorp Q3 net income rises 16% on loan growth
OPBK•OP Bancorp reported third-quarter net income of $7.76 million, up 16% year over year, and EPS of $0.52. Net interest margin was 3.27%.
1. Quarterly results
OP Bancorp said third-quarter revenue rose on higher net interest income and continued loan growth. Net interest income was $22.21 million, and net interest margin expanded to 3.27%.
2. Drivers and outlook
Higher net interest income was primarily driven by continued loan growth and normalization of Federal Reserve Bank account income. Higher average deposit balances increased interest expense, while funding costs remained relatively stable; the provision for credit losses rose due to loan growth and more criticized loans. The company said it expects possible credit upgrades or repayments for criticized loans in coming quarters and believes its allowance for credit losses remains adequate for current credit conditions.
