Open Bank Announces Second Quarter 2013 Results

Open Bank Announces Second Quarter 2013 Results

Total Assets up 65% and Q2 Net Income up 60% Compared to 2Q 2012

Residential Mortgages Added to Product Offerings

LOS ANGELES--(BUSINESS WIRE)-- Open Bank (OTCBB:OPBK) today announced a net income of $903 thousand for the second quarter of 2013 and $4.5 million for the six months ended June 30, 2013, compared to $564 thousand for the second quarter of 2012 and $4.8 million for the six months ended June 30, 2012.

Min Kim, President and Chief Executive Officer, said, "This is our 10th consecutive quarter of positive Net Income. During the first quarter of 2013 we opened our second full service branch in Gardena, California, and we are currently in the process of opening our third full service branch in Koreatown, Los Angeles, California, which is anticipated to open in the third quarter of this year. I am very pleased with the momentum we have developed over the past 2 years. As we move into the second half of 2013, we will continue to focus our attention on growing assets and improving net income through branch expansions.

"The Bank's total assets increased 64.8% in the quarter ending June 30, 2013 to $246.1 million compared to the same quarter in 2012 and our asset quality continues to improve as our classified loans decreased to $6.9 million at June 30, 2013, compared to $11.0 million at June 30, 2012."

Open Bank also announced that this year it has added residential mortgage loans to its list of product offerings. Ms. Kim said, "We believed there was an unmet need for home loans among our customers and we decided to fill that need. As a portfolio lender we offer a complete range of loans and financing options and can address both straightforward and more complex mortgage loans. We are excited to be able to offer this to our customers."

Second Quarter 2013 Highlights:

• Net income of $903 thousand for the three months ended June 30, 2013.

• Net income of $4.5 million for the six months ended June 30, 2013.

• Net interest margin was 4.15% for the second quarter of 2013, compared to 4.93% for the second quarter of 2012.

• Demand deposits increased 45.33% to $64.2 million compared to $44.2 million for the second quarter of 2012 and representing 29.90% of total deposits of $214.8 million at June 30, 2013.

• Net loans increased 57.22% to $184.5 million compared to $117.0 million for the second quarter of 2012.

• Allowance for Loan Losses to Gross Loans was 2.51% at June 30, 2013, compared to 3.39% at June 30, 2012.

• Non-performing assets to total assets continues to improve to 0.81% at June 30, 2013, compared to 1.32% at June 30, 2012.

• The Total risk-based capital ratio, tier 1 capital ratio and tier 1 leverage ratio were 14.32%, 13.06% and 11.78%, respectively at June 30, 2013.

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 is located at 1000 Wilshire Blvd., Suite 100 Los Angeles, California 90017. Phone 213.892.9999; www.myopenbank.comMember 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 "forward-looking statements" 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 future branch expansions and opening a third branch in the third quarter of 2013 as well as the ability to continue to offer mortgage loans in the future. 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 such as the ability of the new branch to attract sufficient number of customers, deposits and new business to become profitable as well as the risk inherent in the general real estate mortgage business. 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 Bank's 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.