The sharp deterioration in criticized loans (3.39% of loans, +191 bps QoQ) and the $1.6M provision charge signal emerging credit stress that may pressure future earnings. Monitor Q4 2026 for resolution of the $41.5M in new Special Mention relationships and any further guidance on credit costs.
Price Chart
Executive Summary
OP Bancorp reported Q3 2026 net income of $7.8M and diluted EPS of $0.52, a 5.1% beat vs consensus of $0.49, driven by 11% QoQ net interest income growth and NIM expansion to 3.27%. However, credit quality deteriorated sharply with criticized loans surging 132% QoQ to $77.6M (3.39% of loans) and net charge-offs rising to $821K (0.14% annualized), while noninterest expenses grew 5% QoQ on higher professional fees. The provision for credit losses swung from a $149K reversal to a $1.6M charge, reflecting loan growth and credit migration.
Key Financial Metrics
Key Facts
- Q3 2026 diluted EPS of $0.52 beat consensus of $0.49 by 5.1%
- Net interest income rose 11% QoQ to $22.2M; NIM expanded 19 bps to 3.27%
- Average loans grew 4% QoQ to $2.33B; average deposits grew 4% to $2.41B
- Provision for credit losses was $1.6M vs a $149K reversal in Q2 2026
- Criticized loans surged 132% QoQ to $77.6M (3.39% of gross loans), driven by $45.7M in new Special Mention loans
- Net charge-offs increased to $821K (0.14% annualized) from $175K (0.03%) in Q2
- Noninterest expense rose 5% QoQ to $15.5M, primarily due to $675K higher professional fees
- Book value per share increased to $16.07; Tier 1 leverage ratio was 9.09%
- Board declared a quarterly cash dividend of $0.14 per share, unchanged from prior quarter
Financial Impact
EPS beat of $0.03 vs consensus; NIM expansion of 19 bps; provision swing of +$1.7M QoQ; criticized loans +$44.1M QoQ
Risk Factors
- Credit quality deterioration: criticized loans surged 132% QoQ, concentrated in CRE Special Mention
- Net charge-offs increased to 0.14% annualized from 0.03% in Q2
- Noninterest expense growth of 5% QoQ driven by non-recurring legal/professional fees
- Noninterest-bearing deposits declined 2% QoQ, increasing reliance on higher-cost time deposits
Investment Themes
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001722010-26-000023 |
| Document: opbk-20261022.htm | 0001722010-26-000023 |
| Document: finalfiling_investorpres.htm | 0001722010-26-000023 |
| Document: opbk8-kerx2026xq3xex993.htm | 0001722010-26-000023 |
| Document: 0001722010-26-000023-index-headers.html | 0001722010-26-000023 |
| Document: 0001722010-26-000023-index.html | 0001722010-26-000023 |
| Document: 0001722010-26-000023.txt | 0001722010-26-000023 |
| 8-K Data (Synthetic) | 0001722010-26-000023 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 3d ago | 8-K | $15.02 | awaiting T+20 | — | $14.72 (−2.00%) |
Jun 10, 2026 19w ago | 144 | $13.99 $14.67 | ▲ +4.86% | ▲ +2.97% | $14.72 (+5.22%) |
Apr 23, 2026 26w ago | 8-K | $14.21 $14.18 | ▼ −0.23% | ▼ −4.26% | $14.72 (+3.57%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers