OP Bancorp reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company, which operates primarily through Open Bank, experienced a notable increase in total assets, which rose to $2,387.98 million, reflecting an 11.2% increase from $2,147.73 million at the end of 2023. This growth was supported by a substantial rise in total deposits, which increased by 14.2% to $2,064.60 million, up from $1,807.56 million.

The bank's loan portfolio also expanded, with gross loans reaching $1,931.01 million, a 9.4% increase from $1,765.85 million. This growth was driven by new loan production, although it was partially offset by loan payoffs. Notably, commercial real estate loans accounted for 50.1% of total gross loans, increasing to $966.47 million from $885.59 million.

In terms of profitability, OP Bancorp reported net income of $5.44 million for the three months ended September 30, 2024, marking a 6.2% increase from $5.12 million in the same period of 2023. However, net income for the nine months decreased to $16.10 million from $18.75 million year-over-year, reflecting a 14.1% decline. The bank's net interest income for the quarter was $16.51 million, down 4.7% from $17.31 million in the prior year, primarily due to rising interest expenses on deposits, which increased by 37.8% to $17.92 million.

Noninterest income saw a significant increase, rising 63% to $4.24 million for the quarter, driven by higher gains on loan sales and service charges. The bank's total noninterest expense also increased to $12.72 million, up from $11.54 million, largely due to higher salaries and employee benefits.

The allowance for credit losses as of September 30, 2024, was $22.96 million, slightly up from $21.62 million at the end of 2023. The provision for credit losses for the quarter was $448,000, a decrease from $1.4 million in the same period last year, indicating improved credit quality.

Overall, OP Bancorp's financial performance reflects a mix of growth in assets and deposits, alongside challenges in net interest income due to rising interest rates and increased operational costs. The bank remains well-capitalized, exceeding all regulatory capital requirements as of the reporting date.