OP Bancorp (NASDAQ:OPBK) Posts Quarterly Earnings Results, Beats Expectations By $0.02 EPS

OP Bancorp (NASDAQ:OPBK) issued its earnings results on Thursday. The company reported $0.52 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.50 by $0.02, FiscalAI reports. The company had revenue of $27.50 million for the quarter, compared to the consensus estimate of $26.50 million. OP Bancorp had a return on equity of 12.89% and a net margin of 17.09%.

OP Bancorp Price Performance

NASDAQ:OPBK traded down $0.30 during trading hours on Friday, reaching $14.72. The stock had a trading volume of 31,439 shares, compared to its average volume of 33,202. The company has a debt-to-equity ratio of 0.42, a quick ratio of 1.01 and a current ratio of 1.02. OP Bancorp has a 52 week low of $12.41 and a 52 week high of $16.83. The company has a 50 day moving average price of $15.16 and a two-hundred day moving average price of $14.81. The stock has a market capitalization of $219.81 million, a PE ratio of 7.36 and a beta of 0.62.

OP Bancorp Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, November 19th. Shareholders of record on Thursday, November 5th will be issued a dividend of $0.14 per share. This represents a $0.56 annualized dividend and a yield of 3.8%. The ex-dividend date is Thursday, November 5th. OP Bancorp’s dividend payout ratio (DPR) is currently 28.00%.

Key Headlines Impacting OP Bancorp

Here are the key news stories impacting OP Bancorp this week:

• Positive Sentiment: OP Bancorp reported third-quarter net income of $7.8 million, or $0.52 per diluted share, up from $6.7 million and $0.45 per share a year earlier. Revenue reached $27.5 million, exceeding the $26.5 million consensus estimate, while deposits rose 3% sequentially to $2.43 billion and loans increased 1% to $2.29 billion. OP Bancorp quarterly earnings report
• Positive Sentiment: The company maintained its quarterly cash dividend at $0.14 per share, equivalent to $0.56 annually and a roughly 3.7% yield. The dividend is payable November 19 to shareholders of record November 5, supporting OPBK’s income-investment appeal. OP Bancorp declares quarterly cash dividend
• Neutral Sentiment: Net interest income increased 11% sequentially to $22.2 million, and net interest margin expanded 19 basis points to 3.27%, indicating improving core banking trends. However, net income declined from $8.0 million, or $0.53 per share, in the second quarter. OP Bancorp third-quarter net income report
• Negative Sentiment: Results were below the Zacks consensus estimate of $0.53 per share, despite exceeding another analyst consensus estimate of $0.50. This mixed earnings performance may have limited enthusiasm for the stock. OP Bancorp Q3 earnings estimate comparison
• Negative Sentiment: Provision for credit losses jumped to $1.60 million from a $149,000 reversal in the prior quarter, raising concerns about credit quality and future earnings. Separately, reported insider activity showed sales without purchases over the past six months, which could add to cautious sentiment.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on the company. Weiss Ratings restated a “buy (b)” rating on shares of OP Bancorp in a research note on Monday, September 14th. Zacks Research cut shares of OP Bancorp from a “strong-buy” rating to a “hold” rating in a research report on Monday, September 28th. DA Davidson boosted their target price on shares of OP Bancorp from $17.00 to $18.00 and gave the stock a “buy” rating in a report on Tuesday, July 28th. Wall Street Zen lowered shares of OP Bancorp from a “buy” rating to a “hold” rating in a research report on Saturday, August 15th. Finally, Keefe, Bruyette & Woods lifted their price target on shares of OP Bancorp from $17.00 to $17.50 and gave the company a “market perform” rating in a report on Monday, July 27th. Two equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, OP Bancorp currently has an average rating of “Moderate Buy” and a consensus target price of $17.75.

OP Bancorp Company Profile

OP Bancorp is the bank holding company for Open Bank, a community-focused financial institution headquartered in Los Angeles, California. Founded in 2005, Open Bank primarily serves small and middle-market businesses, entrepreneurs, professionals and individuals, with a particular focus on Korean American and other Asian American communities.

Open Bank offers a range of banking products and services, including business and personal checking and savings accounts, certificates of deposit, commercial and residential real estate loans, commercial and industrial lending, small business loans and consumer financing.