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Open Bank Announces Third Quarter 2011 Results

^{Published on 2011-11-08 19:42:40 - Market Wire}
 

LOS ANGELES--([ BUSINESS WIRE ])--Open Bank (OTCBB:OPBK) today announced a net income of $271 thousand for the third quarter of 2011 and $1.4 million for the nine months of 2011.

Min Kim, President and Chief Executive Officer said, aWe are very pleased with our third quarter results, which is in line with our plan and mark three consecutive quarters of profits for the bank. We continue to focus on building new customer relationship through core deposits, maintaining a strong capital position while improving the quality of our overall loan portfolio and reducing the bankas exposure to non-performing loans.a

Third Quarter 2011 Highlights

• Net income of $271 thousand for the three months ended September 30, 2011.
• Net income of $1.4 million for the nine months ended September 30, 2011.
• Net interest margin improved significantly to 4.21% for the third quarter of 2011, compared from 3.54% for third quarter of 2010.
• Total deposits increased 11.1% to $115.1 million, with 67.0% growth in demand deposits to $31.9 million from December 31, 2010.
• Allowance for Loan Losses to Gross Loans was 4.47% at September 30, 2011.
• Non-Performing Loans to Total Loans was 2.55% of gross loans at September 30, 2011, compared to 3.16% at September 30, 2010.
• The Total risk-based capital ratio, tier 1 capital ratio and tier 1 leverage ratio were 18.71%, 17.43% and 14.42%, respectively at September 30, 2011.
• Efficiency ratio improved to 62.70% for the third quarter of 2011, compared to 113.11% for the third quarter of 2010.

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 are 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 aforward-looking statementsa 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 the bankas focus on customer relationship, maintaining a strong capital position, improving the quality of the overall loan portfolio and reducing exposure to non-performing loans. 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. 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 Bankas 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.