Overview

* OP Bancorp ( OPBK ) Q3 net income rises 6% to $6.7 mln, revenue up 3%

* Net interest margin expands to 3.26%, efficiency ratio improves to 55.68%

* Credit quality stable with low net charge-offs and steady allowance for credit losses

Outlook

* Company remains focused on sustainable growth and sound financial management

* Company highlights stable credit quality and improved efficiency ratio

Result Drivers

* LOAN GROWTH - Net interest income increased by 3% due to a $37.1 mln increase in average loan balances, despite a decline in loan yields

* EXPENSE REDUCTION - Noninterest expense decreased by 3%, contributing to an improved efficiency ratio of 55.68%

* STABLE CREDIT QUALITY - Credit quality remained stable with low net charge-offs

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 EPS $0.45

Q3 Net $6.70

Income mln

Q3 Net $20.34

Interest mln

Income

Q3 CET1 10.92%

Capital

Ratio

Q3 Net 3.26%

Interest

Margin

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 ( OPBK ) is $16.00, about 15.4% above its October 21 closing price of $13.54

* The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release:

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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.)