Open Bank Announces Second Quarter 2013 Results

OPBK

Open Bank (OTCBB:OPBK) today announced a net income of $903 thousand for the second quarter of 2013 and $4.5 million for the six months ended June 30, 2013, compared to $564 thousand for the second quarter of 2012 and $4.8 million for the six months ended June 30, 2012.

Min Kim, President and Chief Executive Officer, said, “This is our 10th consecutive quarter of positive Net Income. During the first quarter of 2013 we opened our second full service branch in Gardena, California, and we are currently in the process of opening our third full service branch in Koreatown, Los Angeles, California, which is anticipated to open in the third quarter of this year. I am very pleased with the momentum we have developed over the past 2 years. As we move into the second half of 2013, we will continue to focus our attention on growing assets and improving net income through branch expansions.

“The Bank’s total assets increased 64.8% in the quarter ending June 30, 2013 to $246.1 million compared to the same quarter in 2012 and our asset quality continues to improve as our classified loans decreased to $6.9 million at June 30, 2013, compared to $11.0 million at June 30, 2012.”

Open Bank also announced that this year it has added residential mortgage loans to its list of product offerings. Ms. Kim said, “We believed there was an unmet need for home loans among our customers and we decided to fill that need. As a portfolio lender we offer a complete range of loans and financing options and can address both straightforward and more complex mortgage loans. We are excited to be able to offer this to our customers.”

Second Quarter 2013 Highlights:

  • Net income of $903 thousand for the three months ended June 30, 2013.
  • Net income of $4.5 million for the six months ended June 30, 2013.
  • Net interest margin was 4.15% for the second quarter of 2013, compared to 4.93% for the second quarter of 2012.
  • Demand deposits increased 45.33% to $64.2 million compared to $44.2 million for the second quarter of 2012 and representing 29.90% of total deposits of $214.8 million at June 30, 2013.
  • Net loans increased 57.22% to $184.5 million compared to $117.0 million for the second quarter of 2012.
  • Allowance for Loan Losses to Gross Loans was 2.51% at June 30, 2013, compared to 3.39% at June 30, 2012.
  • Non-performing assets to total assets continues to improve to 0.81% at June 30, 2013, compared to 1.32% at June 30, 2012.
  • The Total risk-based capital ratio, tier 1 capital ratio and tier 1 leverage ratio were 14.32%, 13.06% and 11.78%, respectively at June 30, 2013.

About Open Bank

Open Bank (the "Bank") is engaged in the general commercial banking business in Los Angeles County and is focused on serving the banking needs of small- and medium-sized businesses, professionals, and residents with a particular emphasis on the Korean and other ethnic minority communities. The Bank commenced its operations on June 10, 2005 as First Standard Bank and changed its name to Open Bank on September 20, 2010. Its headquarters is located at 1000 Wilshire Blvd., Suite 100 Los Angeles, California 90017. Phone 213.892.9999; www.myopenbank.com Member FDIC, Equal Housing Lender

Safe Harbor

This press release contains certain forward-looking information about Open Bank that is intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. These forward-looking statements may include, but are not limited to, such words as "believes," "expects," "anticipates," "intends," "plans," "estimates," "may," "will," "should," "could," "predicts," "potential," "continue," or the negative of such terms and other comparable terminology or similar expressions and may include statements about future branch expansions and opening a third branch in the third quarter of 2013 as well as the ability to continue to offer mortgage loans in the future. Forward-looking statements are not guarantees. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of Open Bank such as the ability of the new branch to attract sufficient number of customers, deposits and new business to become profitable as well as the risk inherent in the general real estate mortgage business. Open Bank cautions readers that a number of important factors could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements. If any of these risks or uncertainties materializes or if any of the assumptions underlying such forward-looking statements proves to be incorrect, Open Bank’s results could differ materially from those expressed in, or implied or projected by such forward-looking statements. Open Bank assumes no obligation to update such forward-looking statements, except as required by law.

                   
 
Balance Sheet
(Dollars in thousand, except per share data) June 30, 2013 December 31, 2012 June 30, 2012
(Unaudited) (Audited) (Unaudited)
Assets
 
Cash and due from banks $ 33,422 $ 25,146 $ 10,926
Investment securities 11,600 8,011 9,045
Loans held for sale 6,241 7,659 2,912
Loans receivable 178,271 150,424 114,068
Allowance for loan losses 4,748 4,407 4,104
Net loans 184,511 158,084 116,980
Bank premises and equipment, net 1,701 1,120 337
Accrued interest receivable 555 493 484
FHLB and Pacific Coast Bankers Bank Stock, at cost 1,075 813 813
Servicing assets 3,375 2,716 2,012
Net deferred taxes 6,737 4,000 4,000
Other assets   3,074     5,760     4,648  
Total Assets $ 246,050   $ 206,142   $ 149,246  
 
Liabilities and Shareholders' Equity
 
Noninterest bearing demand $ 64,222 $ 54,961 $ 44,190
Savings 651 522 868
Money market and others 84,773 60,969 36,829
Time deposits of $100,000 or more 34,596 29,694 24,363
Other time deposits   30,566     27,846     17,977  
Total deposits 214,807 173,992 124,227
FHLB borrowings - 5,000 -
Other liabilities 1,124 1,257 594
Total liabilities 215,932 180,250 124,821
Total shareholders' equity   30,118     25,892     24,425  
Total Liabilities and Shareholders' Equity $ 246,050   $ 206,142   $ 149,246  
 
Statement of Operations
(Dollars in thousand, except per share data)
Three months ended Six months ended
June 30, 2013 June 30, 2012 June 30, 2013 June 30, 2012
Interest income $ 2,419 $ 1,755 $ 4,735 $ 3,399
Interest expense   259     176     494     401  
Net interest income   2,159     1,579     4,240     2,998  
Provision for loan losses 650 716 1,150 1,073
Non interest income 1,681 1,626 4,122 2,702
Non interest expense   2,258     1,925     5,444     3,784  
Income before income taxes 933 564 1,769 843
Provision for income taxes   30     -     (2,707 )   (4,000 )
Net income (loss) $ 903   $ 564   $ 4,475   $ 4,843  
 
Book Value $ 4.17 $ 3.42 $ 4.17 $ 3.42
Basic EPS $ 0.13 $ 0.08 $ 0.62 $ 0.68
Diluted EPS $ 0.12 $ 0.08 $ 0.61 $ 0.68
 
Key Ratios
Return on average assets (ROA)* 1.58 % 1.57 % 4.15 % 6.86 %
ROA, excluding tax benefit * 1.58 % 1.57 % 1.65 % 1.19 %
Return on average equity (ROE) * 12.09 % 9.41 % 31.88 % 44.44 %
ROE, excluding tax benefit * 12.09 % 9.41 % 13.02 % 8.54 %
Net interest margin * 4.15 % 4.93 % 4.30 % 4.69 %
Efficiency ratio 58.79 % 77.34 % 65.10 % 81.77 %
 
Tier 1 leverage 11.78 % 16.09 % 11.78 % 16.09 %
Tier 1 risk-based capital 13.06 % 17.36 % 13.06 % 17.36 %
Total risk-based capital 14.32 % 18.63 % 14.32 % 18.63 %
 
 
Asset Quality 6/30/2013 3/31/2013 12/31/2012 9/30/2012

6/30/2012

Loans 90 days or more past due, accruing - - -

-

-

Nonaccrual Loans   1,480     1,583     1,621     1,850    

897

 
Total Non-Performing Loans 1,480 1,583 1,621 1,850

897

Other Real Estate Loans (OREO) - - 456 456

-

Accruing Restructured Loans   515     527     876     1,052    

1,071

 
Total Non-Performing Assets 1,995 2,110 2,953 3,358

1,968

 
Non-Performing Loans/Total Loans 0.78 % 0.94 % 1.00 % 1.32 %

0.74

%

Non-Performing Assets/Total Assets 0.81 % 0.96 % 1.43 % 1.98 %

1.32

%

Allowance for Loan Losses/Gross Loans 2.51 % 2.47 % 2.71 % 3.18 %

3.39

%

Allowance for Loan Losses/Non-Performing Loans 320.80 % 261.41 % 271.86 % 240.51 %

457.69

%

 
YTD Net Charge-offs $ 809 $ 769 $ 2,805 $ 2,263

$

1,908

YTD Net Charge-offs to Average Loans * 1.86 % 1.79 % 2.21 % 2.53 %

3.25

%

 
* Annualized
 


Rate this press release
0 stars
v
Usefulness

Clarity

Credibility
Add to favourites icon Add to favourites