OP Bancorp Files 2023 Annual Report on Form 10-K

TL;DR

<b>OP Bancorp has submitted its 2023 annual report (10-K), detailing financial performance and position for the fiscal year ending December 31, 2023.</b>

AI Summary

OP Bancorp (OPBK) filed a Annual Report (10-K) with the SEC on March 29, 2024. OP Bancorp filed its 2023 Form 10-K on March 29, 2024. The company is incorporated in California and operates in the State Commercial Banks sector. The filing covers the fiscal year ending December 31, 2023. Key financial data points from previous fiscal years (2020-2022) are included for comparison. The report details various financial statement elements including common stock, additional paid-in capital, retained earnings, and accumulated other comprehensive income.

Why It Matters

For investors and stakeholders tracking OP Bancorp, this filing contains several important signals. This 10-K filing provides a comprehensive overview of OP Bancorp's financial health and operational results for the past fiscal year, crucial for investors assessing its performance. The detailed financial statements and disclosures within the report are essential for understanding the company's assets, liabilities, equity, and any changes or trends from prior periods.

Risk Assessment

Risk Level: low — OP Bancorp shows low risk based on this filing. The risk is low as this is a standard annual financial filing (10-K) which is routine for publicly traded companies and does not inherently signal new or elevated risks.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis within the 10-K to identify any specific trends, risks, or opportunities for OP Bancorp.

Key Numbers

• 2023-12-31 — Fiscal Year End (Period covered by the report)
• 2024-03-29 — Filing Date (Date the report was filed)
• 6022 — SIC Code (Standard Industrial Classification for State Commercial Banks)

Key Players & Entities

• OP Bancorp (company) — Filer name
• 2023 (date) — Fiscal year end
• 20240329 (date) — Filing date
• CA (location) — State of incorporation
• 6022 (industry) — Standard Industrial Classification
• 1000 WILSHIRE BLVD., SUITE 500 (address) — Business address
• LOS ANGELES (location) — Business address city
• 213-892-1192 (phone) — Business phone

FAQ

Industry Context

OP Bancorp operates within the State Commercial Banks industry, a sector characterized by traditional banking services and regulatory oversight.

Regulatory Implications

As a commercial bank, OP Bancorp is subject to regulations from various financial authorities, including those governing capital requirements, lending practices, and consumer protection.

What Investors Should Do

1. Analyze the financial statements for revenue, net income, and asset growth trends.
2. Review the risk factors section for any new or evolving risks impacting the company.
3. Examine management's discussion and analysis for insights into strategic priorities and outlook.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-03-29: Filing Date — Date OP Bancorp submitted its 10-K to the SEC.

Year-Over-Year Comparison

This filing is the 2023 annual report (10-K), providing a year-end summary of the company's financial status and performance.

Key Financial Figures

• $2.15 b — 23, we had consolidated total assets of $2.15 billion, total deposits of $1.81 billion,
• $1.81 b — ets of $2.15 billion, total deposits of $1.81 billion, total loans outstanding, net of
• $22.0 million — illion, total loans outstanding, net of $22.0 million of allowance for credit losses, of $1.7
• $1.74 b — lion of allowance for credit losses, of $1.74 billion, and total shareholders' equity o
• $192.6 million — lion, and total shareholders' equity of $192.6 million. We provide our customers with a high
• $15.6 million — . Since inception, we have donated over $15.6 million to the Foundation, aiding over 228 loca
• $250,000 — osits excluding time deposits exceeding $250,000, accounted for 76.0% of total deposits.

Filing Documents

• opbk-20231231.htm (10-K) — 3966KB
• opbk-20231231x10kexx231.htm (EX-23.1) — 2KB
• opbk-20231231x10kexx311.htm (EX-31.1) — 11KB
• opbk-20231231x10kexx312.htm (EX-31.2) — 11KB
• opbk-20231231x10kexx321.htm (EX-32.1) — 5KB
• opbk-20231231x10kexx322.htm (EX-32.2) — 5KB
• opbancorpincentivecompensa.htm (EX-97.1) — 42KB
• 0001628280-24-013750.txt (&nbsp;) — 16593KB
• opbk-20231231.xsd (EX-101.SCH) — 69KB
• opbk-20231231_cal.xml (EX-101.CAL) — 143KB
• opbk-20231231_def.xml (EX-101.DEF) — 449KB
• opbk-20231231_lab.xml (EX-101.LAB) — 860KB
• opbk-20231231_pre.xml (EX-101.PRE) — 708KB
• opbk-20231231_htm.xml (XML) — 3340KB

Business

Item 1. Business. 3

Risk Factors

Item 1A. Risk Factors. 25

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments. 50

Cybersecurity

Item 1C. Cybersecurity 50

Properties

Item 2. Properties. 53

Legal Proceedings

Item 3. Legal Proceedings. 54

Mine Safety Disclosures

Item 4. Mine Safety Disclosures. 54 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. 55

[Reserved]

Item 6. [Reserved] 56

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations. 56

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk. 82

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data. 83

Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure. 83

Controls and Procedures

Item 9A. Controls and Procedures. 83

Other Information

Item 9B. Other Information. 84

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. PART III Item 10. Directors, Executive Officers and Corporate Governance. 85 Item 11.

Executive Compensation

Executive Compensation. 95

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. 100

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence. 102

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services. 104 PART IV

Exhi bits and Financial S ta te ment s

Item 15. Exhi bits and Financial S ta te ment s. 105

Form 10-K Summary

Item 16. Form 10-K Summary. 106

SIGNATURES

SIGNATURES 107 Cautionary Note Regarding Forward-Looking Statements Certain matters set forth herein (including any exhibits hereto) constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Rule 175 promulgated thereunder, Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements that are not statements of historical fact are forward-looking, but such statements include comments about the Company's current business plans and expectations regarding future operating results, as well as management's statements about expected future events and economic developments. All such statements reflect the current intentions, beliefs and expectations of the Company's executive management based on currently available information and current and expected market conditions. Forward-looking statements can sometimes be identified by the use of forward-looking language, such as "likely result in," "expects," "anticipates," "estimates," "forecasts," "projects," "intends to," or may include other similar words or phrases, such as "believes," "plans," "trend," "objective," "continues," "remains," or similar expressions, or future or conditional verbs, such as "will," "would," "should," "could," "may," "might," "can," or similar verbs. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from those projected. These risks and uncertainties, some of which are beyond management's control, include, but are not limited to: our ability to meet our liquidity needs, particularly as those obligations relate to the ability to fund deposit withdrawals and undrawn lines of credit; the effects of recent bank failures and media descriptions thereof, particularly w

Business

Item 1. Business. Unless we state otherwise or the context otherwise requires, references in this Annual Report on Form 10-K (this "Report") to "we", "our", "us," "ourselves," "the company" and "the Company" refer to OP Bancorp, a California corporation, and its consolidated wholly-owned subsidiary, Open Bank, a California corporation, which is referred to as "Open Bank" or "the Bank". Our Company We began operations in 2005 as a California chartered banking association under the name First Standard Bank. In 2010, we rebranded the bank as "Open Bank" and in 2016, we incorporated OP Bancorp in California as a bank holding company with Open Bank as our sole subsidiary. We are headquartered in Los Angeles, California, and our common stock is quoted on The Nasdaq Global Market under the ticker symbol, "OPBK." Our commercial banking activities are operated through Open Bank, our wholly owned banking subsidiary. The Bank offers commercial banking services to small and medium-sized businesses, their owners and retail customers with a focus on the Korean-American community. Having grown our branch and loan production office network, we now operate through eleven full service branches located in the greater metropolitan area of Los Angeles, Orange, and Santa Clara Counties in California, the Dallas metropolitan area in Texas, Clark County in Nevada, and four loan production offices in the Korean-American communities in Pleasanton, California, Atlanta, Georgia, Aurora, Colorado, and Lynnwood, Washington. We opened our eleventh full service branch in Las Vegas, Nevada, in the third quarter of 2023. As of December 31, 2023, we had consolidated total assets of $2.15 billion, total deposits of $1.81 billion, total loans outstanding, net of $22.0 million of allowance for credit losses, of $1.74 billion, and total shareholders' equity of $192.6 million. We provide our customers with a high degree of service, convenience and the financial products we believe they need to achie

View Full Filing

View this 10-K filing on SEC EDGAR