Open Bank (OTCBB:OPBK) today announced a net income of $950 thousand for the third quarter of 2013 and $5.4 million for the nine months ended September 30, 2013, compared to $567 thousand for the third quarter of 2012 and $5.4 million for the nine months ended September 30, 2012. Excluding tax benefits, the net income for the first nine months of 2013 was $2.7 million, compared to $1.4 million for the same period 2012.
Min Kim, President and Chief Executive Officer, said, “I am very pleased to announce yet another successful quarter with significant growth in our loan and deposit portfolios. Net loans increased 72.96% to $234.2 million compared to $135.4 million for the third quarter of 2012 and demand deposits increased 88.74% to $84.7 million compared to $46.5 million for the third quarter of 2012. During Q3 2013 we opened our long awaited branch in the Aroma Center located in the heart of Los Angeles’ Koreatown. We are currently in the process of opening our fifth full service branch, located in Buena Park, California, which has a large Korean-American population. The completion of the Buena Park branch will give us the branch network to cover most of our existing customers as well as being able to penetrate into new target market. We expect that our two new branches will contribute greatly to our organic growth in coming years.
“We have also strengthened our lending department with the addition of our new Chief Lending Officer, Ms. Ki Won Yoon. Ms. Yoon has over 25 years of relevant lending experience, with strong ties in the Korean-American business community. Prior to joining Open Bank, Ms. Yoon was District Manager at BBCN bank (formerly Nara Bank), which she joined in 1997, and where she managed a loan portfolio of over $450 million.
“The Bank’s total assets increased 75% in the quarter ending September 30, 2013 to $296.2 million compared to the same quarter in 2012 and our asset quality continues to improve as our classified loans decreased to $4.5 million at September 30, 2013, compared to $7.5 million at September 30, 2012. This quarter marks the 3 rd anniversary since Open Bank changed its name from First Standard Bank to Open Bank. We believe we are well positioned to continue growing our assets and improving our net income through continued strategic branch expansion.”Third Quarter 2013 Highlights:
- Net income of $950 thousand for the three months ended September 30, 2013.
- Net income of $5.4 million for the nine months ended September 30, 2013.
- Net interest margin was 4.50% for the third quarter of 2013, compared to 4.93% for the third quarter of 2012.
- Demand deposits increased 88.74% to $84.7 million compared to $46.5 million for the third quarter of 2012 and representing 32.19% of total deposits of $263.2 million at September 30, 2013.
- Net loans increased 72.96% to $234.2 million compared to $135.4 million for the third quarter of 2012.
- Allowance for Loan Losses to Gross Loans was 2.11% at September 30, 2013, compared to 3.18% at September 30, 2012.
- Non-performing assets to total assets continues to improve to 0.64% at September 30, 2013, compared to 1.98% at September 30, 2012.
- The Total risk-based capital ratio, tier 1 capital ratio and tier 1 leverage ratio were 12.11%, 10.85% and 10.83%, respectively at September 30, 2013.
|(Dollars in thousand, except per share data)||September 30, 2013||December 31, 2012||September 30, 2012|
|Cash and due from banks||$||33,255||$||25,146||$||12,086|
|Federal fund sold/overnight investment||-||-||2,000|
|Loans held for sale||4,516||7,659||1,590|
|Allowance for loan losses||5,046||4,407||4,449|
|Bank premises and equipment, net||2,111||1,120||572|
|Accrued interest receivable||695||493||509|
|FHLB and Pacific Coast Bankers Bank Stock, at cost||1,075||813||813|
|Net deferred taxes||6,737||4,000||4,000|
|Liabilities and Shareholders' Equity|
|Noninterest bearing demand||$||84,743||$||54,961||$||46,487|
|Money market and others||97,211||60,969||46,748|
|Time deposits of $100,000 or more||44,329||29,694||29,320|
|Other time deposits||36,243||27,846||20,543|
|Total shareholders' equity||31,216||25,892||25,054|
|Total Liabilities and Shareholders' Equity||$||296,185||$||206,142||$||169,740|
|Statement of Operations|
|(Dollars in thousand, except per share data)|
|Three months ended||Nine months ended|
|September 30, 2013||September 30, 2012||September 30, 2013||September 30, 2012|
|Net interest income||2,679||1,706||6,919||4,704|
|Provision for loan losses||226||700||1,376||1,773|
|Non interest income||1,623||1,786||5,745||4,488|
|Non interest expense||3,110||2,225||8,554||6,009|
|Income before income taxes||965||567||2,734||1,410|
|Provision for income taxes||15||-||(2,692||)||(4,000||)|
|Net income (loss)||$||950||$||567||$||5,426||$||5,410|
|Return on average assets (ROA)*||1.47||%||1.48||%||3.14||%||4.96||%|
|ROA, excluding tax benefit *||1.47||%||1.48||%||1.57||%||1.29||%|
|Return on average equity (ROE) *||12.40||%||9.18||%||25.00||%||31.68||%|
|ROE, excluding tax benefit *||12.40||%||10.96||%||13.45||%||9.37||%|
|Net interest margin *||4.50||%||4.93||%||4.37||%||4.76||%|
|Tier 1 leverage||12.11||%||15.48||%||12.11||%||15.48||%|
|Tier 1 risk-based capital||10.85||%||15.67||%||10.85||%||15.67||%|
|Total risk-based capital||10.83||%||16.94||%||10.83||%||16.94||%|
|Loans 90 days or more past due, accruing||-||-||-||-||-|
|Total Non-Performing Loans||1,379||1,480||1,583||1,621||1,850|
|Other Real Estate Loans (OREO)||-||-||-||456||456|
|Accruing Restructured Loans||504||515||527||876||1,052|
|Total Non-Performing Assets||1,883||1,995||2,110||2,953||3,358|
|Non-Performing Loans/Total Loans||0.58||%||0.78||%||0.94||%||1.00||%||1.32||%|
|Non-Performing Assets/Total Assets||0.64||%||0.81||%||0.96||%||1.43||%||1.98||%|
|Allowance for Loan Losses/Gross Loans||2.11||%||2.51||%||2.47||%||2.71||%||3.18||%|
|Allowance for Loan Losses/Non-Performing Loans||365.93||%||320.80||%||261.41||%||271.86||%||240.51||%|
|YTD Net Charge-offs||$||737||$||809||$||769||$||2,805||$||2,263|
|YTD Net Charge-offs to Average Loans *||0.52||%||0.93||%||1.79||%||2.21||%||2.53||%|
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