OP Bancorp's Q2 EPS beats estimates

Overview

• OP Bancorp Q2 net income rises to $6.3 mln from $5.6 mln in Q1

• Diluted EPS of $0.42 beats analyst expectations, per LSEG data

• Net interest income increases to $19.7 mln, boosting net interest margin to 3.23%

Outlook

• Company focuses on strengthening core banking operations and customer engagement

• OP Bancorp plans to maintain strong credit quality and capital position

• Company expands footprint with new branch in Garden Grove, California

Result Drivers

• LOAN GROWTH - Net interest income rose due to a $90.1 mln increase in average loan balances, boosting interest income

• HIGHER LOAN YIELDS - Loan yields improved by 17 basis points, aided by higher new loan rates and increased prepayment penalties

• LOWER DEPOSIT COSTS - Interest-bearing deposit costs fell by 13 basis points, contributing to the improved net interest margin

Key Details

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 $15.75, about 12.6% above its July 23 closing price of $13.77

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

Press Release: ID:nBw9xp4s2a