Opus Bank (OPB) Tops Q3 EPS by 19c

Opus Bank (NASDAQ: OPB) reported Q3 EPS of $0.54, $0.19 better than the analyst estimate of $0.35.

Stephen H. Gordon, Chairman, Chief Executive Officer and President of Opus Bank, stated, “Our performance during the third quarter of 2017 represents the exceptional effort and determination of Opus’ team members. Return on average assets increased to 1.09% and return on average tangible equity was 12.79%, driven by improved core profitability, improved credit, lower expenses, and continued strong contributions from Opus’ diverse lines of business and sources of noninterest income, including our alternative asset IRA custodian subsidiary and our Merchant Banking division.”

Mr. Gordon continued, “During the third quarter, we continued to rapidly reduce the portfolio loan balances we previously announced as targeted for planned exits, while our quarterly new loan fundings increased sequentially and surpassed loan payoffs net of these planned exits. As we enter the fourth quarter, our new loan pipeline continues its seasonal ramp and currently sits at its highest level of the year. The investments we made earlier this year to enhance our credit administration, enterprise risk management, and banking operations are now resulting in improved profitability, and despite carrying elevated expenses associated with legacy issues, total noninterest expense declined 6.4% from the prior quarter.”

Mr. Gordon concluded, “We remain diligently focused on the work still ahead of us. Our capital ratios remain healthy and continue to improve, with total risk-based capital at 15.00% and Tier 1 leverage at 9.28%, and tangible book value per share is approaching the peak levels of 2016. Furthermore, our balance sheet remains highly liquid and flexible, and we are well positioned for a potential rising interest rate environment, particularly due to our largely floating-rate loan portfolio, our strong relationship-based core deposits, and low deposit beta.”

For earnings history and earnings-related data on Opus Bank (OPB) click here.

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