Opus Bank (OPB) Tops Q3 EPS by 23c

Opus Bank (NASDAQ: OPB) reported Q3 EPS of $0.58, $0.23 better than the analyst estimate of $0.35.

Paul W. Taylor, President and Chief Executive Officer of Opus Bank, stated, "I am pleased to announce that Opus recorded quarterly earnings per share of $0.57, an increase from $0.23 in the second quarter. As a result of the progress we made in reducing the balances of Enterprise Value loans and nonperforming assets, we recorded a negative provision for loan losses of $7.7 million in the third quarter. Additionally, we significantly reduced overhead expenses after taking the painful but necessary actions in the second quarter to bring Opus more in line with peer efficiency levels. We also generated greater noninterest income from PENSCO and our Escrow and Exchange divisions in the third quarter. These accomplishments resulted in an ROAA of 1.13%, ROATCE of 12.9%, and efficiency ratio of 61.8% for the third quarter of 2019.”

Mr. Taylor continued, “Overall loan growth slowed in the third quarter, due to rate management and elevated payoffs. Yet, our Commercial Banking division originated $99.1 million of loans during the quarter and is continuing to gain traction, despite heavy competition from peers. The intentional runoff of Enterprise Value loans has clouded the progress we are making in remixing our loan portfolio toward a greater percentage of Commercial Business loans, but we expect this headwind will lessen in 2020. In spite of the challenging interest rate environment, I am confident that our profitability will continue to improve.”

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

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