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OP Bancorp

Nasdaq:OPBK
Snowflake Description

Flawless balance sheet with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
OPBK
Nasdaq
$165M
Market Cap
  1. Home
  2. US
  3. Banks
Company description

OP Bancorp operates as the bank holding company for Open Bank that provides banking products and services in California. The last earnings update was 6 days ago. More info.


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OPBK Share Price and Events
7 Day Returns
5.9%
NasdaqGM:OPBK
-1.6%
US Mortgage
-0.7%
US Market
1 Year Returns
-15.8%
NasdaqGM:OPBK
1.6%
US Mortgage
3%
US Market
OPBK Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
OP Bancorp (OPBK) 5.9% 15.6% 12.6% -15.8% 78.3% 31.5%
US Mortgage -1.6% -1% 0.5% 1.6% 34.6% 42.2%
US Market -0.7% -2% 2.4% 3% 39.2% 42%
1 Year Return vs Industry and Market
  • OPBK underperformed the Mortgage industry which returned 1.6% over the past year.
  • OPBK underperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
OPBK
Industry
5yr Volatility vs Market

Value

 Is OP Bancorp undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of OP Bancorp to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for OP Bancorp.

NasdaqGM:OPBK Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= $9.40 * 10.3%
$0.97
Book Value of Equity per Share Weighted future Book Value estimates from 2 analysts. $9.40
Discount Rate (Cost of Equity) See below 8.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGM:OPBK
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Mortgage Unlevered Beta Simply Wall St/ S&P Global 0.9
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.905 (1 + (1- 21%) (5.81%))
0.964
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.96
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.964 * 5.96%)
8.47%

Discounted Cash Flow Calculation for NasdaqGM:OPBK using Excess Returns Model Model

The calculations below outline how an intrinsic value for OP Bancorp is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NasdaqGM:OPBK Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (10.3% – 8.47%) * $9.40)
$0.17
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $0.17 / (8.47% - 2.73%)
$3.02
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $9.40 + $3.02
$12.42
NasdaqGM:OPBK Discount to Share Price
Calculation Result
Value per share (USD) From above. $12.42
Current discount Discount to share price of $10.52
= -1 x ($10.52 - $12.42) / $12.42
15.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price OP Bancorp is available for.
Intrinsic value
15%
Share price is $10.52 vs Future cash flow value of $12.42
Current Discount Checks
For OP Bancorp to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • OP Bancorp's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • OP Bancorp's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for OP Bancorp's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are OP Bancorp's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGM:OPBK PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.97
NasdaqGM:OPBK Share Price ** NasdaqGM (2019-05-17) in USD $10.52
United States of America Mortgage Industry PE Ratio Median Figure of 131 Publicly-Listed Mortgage Companies 14.3x
United States of America Market PE Ratio Median Figure of 3,088 Publicly-Listed Companies 17.89x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of OP Bancorp.

NasdaqGM:OPBK PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGM:OPBK Share Price ÷ EPS (both in USD)

= 10.52 ÷ 0.97

10.8x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • OP Bancorp is good value based on earnings compared to the US Mortgage industry average.
  • OP Bancorp is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does OP Bancorp's expected growth come at a high price?
Raw Data
NasdaqGM:OPBK PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.8x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
5.2%per year
United States of America Mortgage Industry PEG Ratio Median Figure of 49 Publicly-Listed Mortgage Companies 1.35x
United States of America Market PEG Ratio Median Figure of 2,117 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

NasdaqGM:OPBK PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.8x ÷ 5.2%

2.06x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • OP Bancorp is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on OP Bancorp's assets?
Raw Data
NasdaqGM:OPBK PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $8.42
NasdaqGM:OPBK Share Price * NasdaqGM (2019-05-17) in USD $10.52
United States of America Mortgage Industry PB Ratio Median Figure of 144 Publicly-Listed Mortgage Companies 1.14x
United States of America Market PB Ratio Median Figure of 5,195 Publicly-Listed Companies 1.83x
NasdaqGM:OPBK PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGM:OPBK Share Price ÷ Book Value per Share (both in USD)

= 10.52 ÷ 8.42

1.25x

* Primary Listing of OP Bancorp.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • OP Bancorp is overvalued based on assets compared to the US Mortgage industry average.
X
Value checks
We assess OP Bancorp's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Mortgage industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Mortgage industry average (and greater than 0)? (1 check)
  5. OP Bancorp has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is OP Bancorp expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is OP Bancorp expected to grow at an attractive rate?
  • OP Bancorp's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • OP Bancorp's earnings growth is positive but not above the United States of America market average.
  • OP Bancorp's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGM:OPBK Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGM:OPBK Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 5.2%
NasdaqGM:OPBK Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 10%
United States of America Mortgage Industry Earnings Growth Rate Market Cap Weighted Average 9.9%
United States of America Mortgage Industry Revenue Growth Rate Market Cap Weighted Average 5.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGM:OPBK Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGM:OPBK Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 62 17 2
2019-12-31 57 17 2
NasdaqGM:OPBK Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 52 35 15
2018-12-31 49 31 14
2018-09-30 48 24 12
2018-06-30 47 7 11
2018-03-31 45 -6 10
2017-12-31 43 -2 9
2017-09-30 42 9
2017-06-30 40 8
2017-03-31 38 8
2016-12-31 36 11 7
2016-09-30 34 7
2016-06-30 32 6

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • OP Bancorp's earnings are expected to grow by 5.2% yearly, however this is not considered high growth (20% yearly).
  • OP Bancorp's revenue is expected to grow by 10% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGM:OPBK Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from OP Bancorp Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:OPBK Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 1.06 1.06 1.05 2.00
2019-12-31 1.03 1.04 1.01 2.00
NasdaqGM:OPBK Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.97
2018-12-31 0.92
2018-09-30 0.83
2018-06-30 0.82
2018-03-31 0.76
2017-12-31 0.68
2017-09-30 0.68
2017-06-30 0.64
2017-03-31 0.60
2016-12-31 0.55
2016-09-30 0.53
2016-06-30 0.49

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if OP Bancorp will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess OP Bancorp's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
OP Bancorp has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has OP Bancorp performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare OP Bancorp's growth in the last year to its industry (Mortgage).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • OP Bancorp has delivered over 20% year on year earnings growth in the past 5 years.
  • OP Bancorp's 1-year earnings growth exceeds its 5-year average (54.4% vs 29.8%)
  • OP Bancorp's earnings growth has exceeded the US Mortgage industry average in the past year (54.4% vs 39%).
Earnings and Revenue History
OP Bancorp's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from OP Bancorp Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:OPBK Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 52.20 15.33 27.22
2018-12-31 49.02 13.83 26.12
2018-09-30 47.92 12.01 25.40
2018-06-30 46.78 11.26 24.66
2018-03-31 44.67 9.93 24.01
2017-12-31 43.39 8.87 23.73
2017-09-30 41.82 8.88 39.08
2017-06-30 39.77 8.31 32.99
2017-03-31 37.77 7.75 22.91
2016-12-31 35.65 7.02 21.26
2016-09-30 33.52 6.73 17.89
2016-06-30 31.84 6.20 17.89
2016-03-31 30.94 5.98 18.84
2015-12-31 29.93 5.55 17.93
2015-09-30 27.80 5.39 14.64
2015-06-30 26.78 5.14 14.64
2015-03-31 25.51 4.76 12.25
2014-12-31 24.21 4.48 14.64
2014-09-30 22.65 3.03 10.86
2014-06-30 20.27 2.70 10.86
2014-03-31 17.01 2.40 11.46
2013-12-31 15.54 4.95 10.86
2013-09-30 14.58 6.21
2013-06-30 13.30 5.83
2013-03-31 12.59 5.49
2012-12-31 10.71 6.20
2012-09-30 9.31 5.54
2012-06-30 8.40 5.25

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • OP Bancorp has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • OP Bancorp used its assets more efficiently than the US Mortgage industry average last year based on Return on Assets.
  • Unable to establish if OP Bancorp improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess OP Bancorp's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Mortgage industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
OP Bancorp has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is OP Bancorp's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of OP Bancorp's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from OP Bancorp Company Filings, last reported 1 month ago.

NasdaqGM:OPBK Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 132.38 9.57 65.80
2018-12-31 129.79 0.00 77.73
2018-09-30 124.98 0.00 95.79
2018-06-30 121.39 25.00 61.25
2018-03-31 117.26 10.00 69.90
2017-12-31 91.48 25.00 63.25
2017-09-30 89.48 25.00 53.96
2017-06-30 86.74 10.00 67.53
2017-03-31 83.78 0.00 55.58
2016-12-31 81.28 10.00 20.13
2016-09-30 78.79 10.00 29.99
2016-06-30 76.51 10.00 23.05
2016-03-31 74.18 20.00 54.35
2015-12-31 72.48 20.00 37.40
2015-09-30 70.82 20.00 49.25
2015-06-30 69.08 10.00 50.18
2015-03-31 67.23 30.03 69.72
2014-12-31 65.44 30.00 64.75
2014-09-30 64.02 0.00 40.91
2014-06-30 62.52 0.00 78.31
2014-03-31 32.67 0.00 44.15
2013-12-31 31.19 0.00 18.51
2013-09-30 31.22 0.00 33.26
2013-06-30 30.12 0.00 33.42
2013-03-31 29.52 0.00 34.85
2012-12-31 25.89 5.00 25.15
2012-09-30 25.05 0.00 14.09
2012-06-30 24.43 0.00 10.93
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • OP Bancorp has an acceptable proportion of non-loan assets held.
  • OP Bancorp's liabilities are made up of primarily low risk sources of funding.
  • Loans at OP Bancorp are broadly funded by customer deposits.
  • OP Bancorp's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).
  • OP Bancorp has a sufficient allowance for bad loans.
  • OP Bancorp has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess OP Bancorp's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. OP Bancorp has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is OP Bancorp's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.9%
Current annual income from OP Bancorp dividends.
If you bought $2,000 of OP Bancorp shares you are expected to receive $38 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • OP Bancorp's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • OP Bancorp's dividend is below the markets top 25% of dividend payers in United States of America (3.69%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGM:OPBK Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
United States of America Mortgage Industry Average Dividend Yield Market Cap Weighted Average of 94 Stocks 3.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2000 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGM:OPBK Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31
2019-12-31
NasdaqGM:OPBK Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-26 0.200 1.976
2019-03-15 0.200 2.257
2019-01-25 0.200 2.171

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • It is too early to tell whether OP Bancorp has stable dividend payments.
  • OP Bancorp only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of OP Bancorp's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (19.5x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess OP Bancorp's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can OP Bancorp afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. OP Bancorp has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of OP Bancorp's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Min Kim
COMPENSATION $951,817
AGE 58
TENURE AS CEO 3.3 years
CEO Bio

Ms. Min Jung Kim has been Chief Executive Officer, President and Director at Open Bank (Los Angeles CA) (also known as First Standard Bank) since April 1, 2010. Ms. Kim has been Chief Executive Officer, President and Director at OP Bancorp since April 2010. She served as Chief Executive Officer and President of Nara Bancorp Inc., and its subsidiary Nara Bank from November 27, 2006 to January 2010. Ms. Kim served as Chief Operating Officer of Nara Bank and Nara Bancorp Inc., since November 2003. She served as a Member of office of President of Nara Bancorp Inc., since March 13, 2003. She had been with Nara Bank since 1995 and first served as its Chief Credit Administrator from 1993 to October 2003, Vice President from 1993 to 2000 and Senior Vice President from February 2000 to April 2005. Previously, Ms. Kim served as an Executive Vice President of Nara Bank since 1995 and Chief Credit Officer from 1995 to April 2005. Ms. Kim served as an Executive Vice President of Nara Bancorp Inc., since February 2001 and it Chief Credit Officer from January 2000 to October 2003. She served as a Acting President of Nara Bancorp Inc., since March 13, 2006. From 1996 to March 2006, Ms. Kim served in various executive positions with Nara Bancorp and Nara Bank. She was Chief Credit Administrator at Nara Bancorp. Prior to joining Nara Bancorp and Nara Bank in 1995, Ms. Kim served in numerous positions with Hanmi Bank, including Vice President and Manager of the Western Street Branch of Hanmi Bank in Los Angeles from 1985 to 1995 and also served as its Lending Officer and Branch Manager. Prior to joining Nara Bank, Ms. Lee held various lending positions with California Center Bank in Los Angeles from 1989 to 1993. She served as an Operations Officer of Wilshire State Bank. She has over 35 years of banking experience in the Korean banking community. She served as Director of Nara Bancorp Inc., and Nara Bank from December 20, 2006 to January 2010. Ms. Kim has a Bachelor of Science degree in Business Administration and Finance from the University of Southern California.

CEO Compensation
  • Min's compensation has been consistent with company performance over the past year.
  • Min's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the OP Bancorp management team in years:

3.3
Average Tenure
53
Average Age
  • The tenure for the OP Bancorp management team is about average.
Management Team

Min Kim

TITLE
President
COMPENSATION
$952K
AGE
58
TENURE
3.3 yrs

Christine Oh

TITLE
Executive VP & CFO
COMPENSATION
$531K
AGE
51
TENURE
3.2 yrs

Steve Park

TITLE
Executive VP & Chief Credit Officer of Open Bank
COMPENSATION
$531K
AGE
53
TENURE
8.9 yrs
Board of Directors Tenure

Average tenure and age of the OP Bancorp board of directors in years:

3.3
Average Tenure
68
Average Age
  • The tenure for the OP Bancorp board of directors is about average.
Board of Directors

Brian Choi

TITLE
Chairman of the Board
COMPENSATION
$66K
AGE
66
TENURE
3.3 yrs

Min Kim

TITLE
President
COMPENSATION
$952K
AGE
58
TENURE
3.3 yrs

Yong Shin

TITLE
Director
COMPENSATION
$48K
AGE
58
TENURE
3.3 yrs

Jason Hwang

TITLE
Director
COMPENSATION
$48K
AGE
68
TENURE
3.3 yrs

Ernest Dow

TITLE
Director
COMPENSATION
$48K
AGE
68
TENURE
3.3 yrs

Chong Jung

TITLE
Director
COMPENSATION
$48K
AGE
68
TENURE
3.3 yrs

Ock Kim

TITLE
Director
COMPENSATION
$48K
AGE
76
TENURE
3.3 yrs

Susan Park

TITLE
Director
COMPENSATION
$48K
AGE
70
TENURE
3.3 yrs
Who owns this company?
Recent Insider Trading
  • OP Bancorp insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
17. May 19 Sell Soo Hun Jung Individual 16. May 19 16. May 19 -20,000 $10.51 $-210,200
12. Feb 19 Buy Ock Kim Individual 10. Dec 18 10. Dec 18 2,000 $9.09 $18,176
14. Dec 18 Buy Brian Choi Individual 12. Dec 18 12. Dec 18 30,000 $8.94 $268,200
16. Aug 18 Sell Steve Park Individual 16. Aug 18 16. Aug 18 -25,000 $12.55 $-313,750
X
Management checks
We assess OP Bancorp's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. OP Bancorp has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

What Kind Of Shareholder Appears On The OP Bancorp's (NASDAQ:OPBK) Shareholder Register?

The big shareholder groups in OP Bancorp (NASDAQ:OPBK) have power over the company. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … OP Bancorp is not a large company by global standards.

Simply Wall St -

Should You Be Tempted To Buy OP Bancorp (NASDAQ:OPBK) At Its Current PE Ratio?

The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … While this makes OPBK appear like a great stock to buy, you might change your mind after I explain the assumptions behind the P/E ratio. … I will break down what the P/E ratio is, how to interpret it and what to watch out for

Simply Wall St -

Can OP Bancorp (NASDAQ:OPBK) Continue To Outperform Its Industry?

and want to learn about Return on Equity using a real-life example. … With more debt, OPBK can invest even more and earn more money, thus pushing up its returns. … However, ROE only measures returns against equity, not debt.

Simply Wall St -

Has OP Bancorp's (NASDAQ:OPBK) Earnings Momentum Changed Recently?

Below, I will assess OPBK's latest performance announced on 31 March 2018 and weigh these figures against its longer term trend and industry movements. … Were OPBK's earnings stronger than its past performances and the industry. … OPBK's trailing twelve-month earnings (from 31 March 2018) of US$9.93m has

Simply Wall St -

Is There Now An Opportunity In OP Bancorp (NASDAQ:OPBK)?

OP Bancorp (NASDAQ:OPBK), operating in the financial services industry based in United States,. … So, could the stock still be trading at a low price relative to its actual value. … Let’s take a look at OP Bancorp’s outlook and value based on the most recent financial data to see if the opportunity still exists

Simply Wall St -

Why OP Bancorp (NASDAQ:OPBK) Is An Attractive Investment

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook.

Simply Wall St -

Does OP Bancorp's (NASDAQ:OPBK) PE Ratio Signal A Buying Opportunity?

By comparing a stock’s price per share to its earnings per share, we are able to see how much investors are paying for each dollar of the company’s earnings. … Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for OPBK Price per share = $12.4 Earnings per share = $0.755 ∴ Price-Earnings Ratio = $12.4 ÷ $0.755 = 16.4x On its own, the P/E ratio doesn’t tell you much; however, it becomes extremely useful when you compare it with other similar companies. … For example, if you are inadvertently comparing lower risk firms with OPBK, then OPBK’s P/E would naturally be lower than its peers, since investors would value those with lower risk with a higher price.

Simply Wall St -

Is OP Bancorp (NASDAQ:OPBK) Expensive For A Reason? A Look At The Intrinsic Value

NasdaqGM:OPBK Intrinsic Value May 10th 18 Deriving OPBK's True Value The key assumption for Excess Returns is, the value of the company is how much money it can generate from its current level of equity capital, in excess of the cost of that capital. … The returns in excess of cost of equity is called excess returns: Excess Return Per Share = (Stable Return On Equity – Cost Of Equity) (Book Value Of Equity Per Share) = (10.25% – 9.92%) * $8.77 = $0.03 Excess Return Per Share is used to calculate the terminal value of OPBK, which is how much the business is expected to continue to generate over the upcoming years, in perpetuity. … This is a common component of discounted cash flow models: Terminal Value Per Share = Excess Return Per Share / (Cost of Equity – Expected Growth Rate) = $0.03 / (9.92% – 2.47%) = $0.39 Combining these components gives us OPBK's intrinsic value per share: Value Per Share = Book Value of Equity Per Share + Terminal Value Per Share = $8.77 + $0.39 = $9.16 Relative to today's price of $11.71, OPBK is priced higher than its intrinsic value.

Simply Wall St -

Company Info

Description

OP Bancorp operates as the bank holding company for Open Bank that provides banking products and services in California. It offers demand, checking, savings, money market, and time deposit accounts, as well as certificate of deposits. The company also provides commercial real estate, small business administration, commercial and industrial business, single-family residential, term, and consumer loans; trade financing products; letters of credit, and SWIFT and export advice; and home mortgage loans. In addition, it offers online banking, mobile banking, debit and credit card, online transfer and bill payment, and cash management services. OP Bancorp operates through its 8 service branches in the greater metropolitan area of Los Angeles, Orange County, and Santa Clara County in California; and 5 loan production offices in the Korean-American communities in Atlanta, Georgia; Aurora, Colorado; and Dallas, Texas, as well as in Lynnwood and Seattle in Washington. OP Bancorp was founded in 2005 and is headquartered in Los Angeles, California.

Details
Name: OP Bancorp
OPBK
Exchange: NasdaqGM
Founded: 2005
$164,712,292
15,657,062
Website: http://www.myopenbank.com
Address: OP Bancorp
1000 Wilshire Boulevard,
Suite 500,
Los Angeles,
California, 90017,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGM OPBK Common Stock Nasdaq Global Market US USD 22. Jul 2005
Number of employees
Current staff
Staff numbers
159
OP Bancorp employees.
Industry
Thrifts and Mortgage Finance
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/20 02:00
End of day share price update: 2019/05/17 00:00
Last estimates confirmation: 2019/04/29
Last earnings filing: 2019/05/14
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.