OP BancorpOPBK

OP Bancorp Debt Disclosure

10-KFiled Mar 28, 20251 min read
Borrowing Arrangements
As of December 31, 2024, the Company had $95.0 million advances from FHLB with a weighted average interest rate of 4.34% and a weighted average remaining term of 0.2 years, compared to $105.0 million advances with a weighted average interest rate of 4.65% and a weighted average remaining term of 0.9 years as of December 31, 2023. The Company has a letter of credit with the FHLB in the amount of $100.0 million and $67.0 million to secure a public deposit as of December 31, 2024 and 2023, respectively.

The Company had available borrowing capacity from the following institutions as of December 31, 2024:

($ in thousands)
FHLB$401,900 
Federal Reserve Bank215,115 
Pacific Coast Bankers Bank50,000 
Zions Bank25,000 
First Horizon Bank25,000 
Total$717,015 
The Company has pledged approximately $1.41 billion and $1.39 billion of loans as collateral for these lines of credit as of December 31, 2024 and 2023, respectively.

About Debt Disclosures

Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.

Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.

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