Open Bank (OTCBB:OPBK) today announced a net income of $773 thousand for the second quarter of 2011 and $1.1 million for the first six months of 2011. This quarter marks the second consecutive quarters to record profit in the history of Open Bank. Open Bank also announces significant progress in reducing nonperforming loans from the bank’s loan portfolio.
Min Kim, President and Chief Executive Officer said, “We believe that we have turned an important corner and are very pleased with our second quarter results; our second consecutive quarterly profit. The strategies we put in place last year have positioned us to record solid net earnings through the second quarter of 2011 with significant improvements in our net interest margin, as well as significant increases in our core deposits.”
The Bank’s demand deposits were 25% of total deposits at June 30, 2011, compared to 12% of total deposits at June 30, 2010. Asset quality has also improved significantly, with Total Non-Performing Loans at June 30, 2011 down to $502 thousand from $3.65 Million at June 30, 2010.
Second Quarter 2011 Highlights
•Net income of $773 thousand for the three months ended June 30, 2011.
•Net income of $1.1 million for the six months ended June 30, 2011.
•Non-interest income increased to $1.7 million for second quarter of 2011, compared to $165 thousand for second quarter of 2010.
•Net interest margin improved significantly to 4.42% for the second quarter of 2011, compared from 3.17% for second quarter of 2010.
•Total deposits increased 10.2% to $114.2 million, with 50% growth in demand deposits to $28.6 million from December 31, 2010.
•Allowance for Loan Losses to Gross Loans was 4.37% at June 30, 2011.
•Non-Performing Loans to Total Loans was 0.53% of gross loans at June 30, 2011, compared to 3.77% at June 30, 2010.
•The Total risk-based capital ratio, tier 1 capital ratio and tier 1 leverage ratio were 19.41%, 18.13% and 14.54%, respectively at June 30, 2011.
•Efficiency ratio improved to 66.37% for the second quarter of 2011, compared to 108.57% for second quarter of 2010.
