By Katherine Hamilton
Shares of OP Bancorp slid after the company posted a lower fourth-quarter profit and said it is recording more loans that are at risk of not being paid back.
The Los Angeles bank holding company's stock declined 12%, to $13.82, on Friday, adding to an overall 2% fall during the past three months.
OP Bancorp said its classified loans, which are those in danger of default, increased to $13.3 million in the fourth quarter, up from $11.9 million the previous year.
"We are continuing to experience the effects of uncertainty in the financial markets providing challenges in increasing customer deposits and lowering costs of deposit," said Chief Executive Min Kim.
OP's quarterly profit was $5 million, or 33 cents a share, for the quarter ended Dec. 31, down from $5.2 million, or 34 cents a share, the prior year.
Nonperforming loans increased about 29% from 2023. The bank more than doubled its provision for credit losses to $1.5 million in the fourth quarter, up from $630,000 the year before.
The bank, which operates several branches in the Los Angeles area, said it is paying "careful attention" to its customers and employees affected by the wildfires.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
January 24, 2025 15:01 ET (20:01 GMT)
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