OP Bancorp Q3 net income rises 16% on loan growth
Overview
California community bank reported Q3 net income and EPS up yr/yr
Revenue rose on higher net interest income and continued loan growth
Net interest margin expanded to 3.27% in Q3
Outlook
Company says it remains focused on sustainable growth and disciplined risk management entering Q4 2026
Company expects possible credit upgrades or repayments for criticized loans in coming quarters
Company believes allowance for credit losses remains adequate for current credit conditions
Result Drivers
LOAN GROWTH - Co said higher net interest income was primarily driven by continued loan growth and normalization of Federal Reserve Bank account income
DEPOSIT COSTS - Higher interest expense resulted from increased average deposit balances, though funding costs remained relatively stable
CREDIT LOSS PROVISION - Provision for credit losses rose due to loan growth and more criticized loans
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 EPS | $0.52 | ||
Q3 Net Income | $7.76 mln | ||
Q3 Net Interest Income | $22.21 mln | ||
Q3 Net Interest Margin | 3.27% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy"
Wall Street's median 12-month price target for OP Bancorp is $17.75, about 21.3% above its October 21 closing price of $14.63
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago
Reuters Recommended Reads
Oct 21 - First Bancorp Q3 net income rises 17.5%
Oct 21 - Cathay General Bancorp Q3 net income rises on higher interest income from loans
Oct 21 - Community Trust Bancorp's Q3 net interest income rises nearly 10%
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)