Opus Bank (NASDAQ:OPB) Q2 2016 Earnings Conference Call - Preliminary Transcript

Jul 25, 2016 • 11:00 am ET

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Opus Bank (NASDAQ:OPB) Q2 2016 Earnings Conference Call - Preliminary Transcript

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Presentation
Operator
Operator

Good morning. My name is Casey and I will be your conference operator today. At this time I would like to welcome everyone to the Opus Bank Second Quarter Earnings Call Conference. All lines have been placed on mute to prevent any background noise. After the speakers remarks there will be a question and answer session. [Operator Instructions]

Thank you, Brett Villaume, Director of investor relations, you may begin your conference.

Executive
Brett Villaume

Good morning and welcome to Opus Bank's investor webcast and conference call. Today, I'm joined by Stephen Gordon, Opus banks Founding Chairman, CEO and President; Michael Allison, co President and President of the commercial bank; and Nicole Carrillo, Chief Financial Officer. Our discussion today will cover the company's performance during the second quarter of 2016 and information contained in the earnings press release issued earlier this morning.

A slideshow presentation that accompanies today's call is available on the Opus Bank investor webpage at investor.opusbank.com. Today's discussion may entail forward looking statements, which are intended to be covered by the safe harbour provisions of the Private securities litigation Reform Act of 1995. You'll find a discussion of these forward looking statements in our recent FDIC filings and on page eight of this morning series.

Today's call will include a question and answer session following the discussion. For listeners who are participating via WebEx, should you have any questions you may submit those using the q&a feature located on the right hand side of your WebEx window. The white triangle just to the left of the question mark and letters QA should be pointing down. Clicking on that triangle opens and closes the q&a dialogue box.

Now, I will turn it over to Steven Gordon, Chairman and CEO.

Executive
Steven Gordon

Thank you, Brett. I'll now provide an overview of the results for the second quarter of 2016 and then call on Michael Allison, co President and President of the commercial bank; and Nicole Carrillo, Chief Financial Officer to go into more detail on our financial performance. We will address questions at the end of our prepared remarks.

The second quarter of 2016 continues to demonstrate up as a strong underlying core performance as we execute our mission of building a highly profitable, high growth super regional bank that is entrepreneurial solution based and client centric and major Metro markets up and down the West Coast.

Our second quarter results were marked by records second quarter loan funding, and record second quarter new loan commitments, which were significantly higher than any previous second quarter levels in offices history. We also saw continued strong growth in both loans and deposits, a lower cost of deposits and lower loan to deposit ratio, record levels of net interest income, total revenues and pre tax pre provision earnings during the quarter, as well as record fee income contributions from each of the merchant bank or escrow and exchange divisions and our pens go trust company's subsidiary, which we acquired during the second quarter.

For the second quarter of 16,