Opus Bank (NASDAQ:OPB) Q1 2017 Earnings Conference Call - Final Transcript
Apr 24, 2017 • 11:00 am ET
Good morning, my name is Heidi and I will be your conference operator today. At this time I would like to welcome everyone to the Opus Bank Q1 2017 Earnings Conference Call.
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)
It is now my pleasure to turn the call over to Mr. Brett Villaume, Director of IR. You may begin your conference.
Good morning and welcome to Opus Bank's investor webcast and conference call. Today I am joined by Stephen Gordon, Opus Bank's Founding Chairman, CEO and President; Brian Fitzmaurice, SEVP and Senior Chief Credit Officer; and Nicole Carrillo, CFO.
Our discussion today will cover the Company's performance during the first quarter of 2017 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.opusnbank.com.
(Forward-Looking Cautionary Statements)
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 Q&A should be pointing down. Clicking on that triangle opens and closes the Q&A dialog box.
Now I will turn the call over to Stephen Gordon, Founding Chairman, CEO, and President.
Thank you, Brett. I will now provide an overview of the results for the first quarter of 2017 and then call on Brian Fitzmaurice, Senior Chief Credit Officer, and Nicole Carrillo, CFO, to go into more detail on our credit metrics and financial performance. We will address questions at the end of our prepared remarks.
We are proud to announce our results for the first quarter as they are a significant achievement that represents the culmination of the collaborative and proactive efforts by the talented and committed team here at Opus and is another step forward in the process of restoring the type of consistently strong financial performance that we are accustomed to achieving and which shareholders have historically expected from us.
For the first quarter of 2017, we reported net income of $7.7 million or $0.21 per diluted share. Excluding strategic initiative-related expenses and the adoption of the new accounting standard, our net income was $9 million or $0.24 per share for the first quarter compared to a net loss of $19 million or $0.55 per share in the fourth quarter of 2016.
During the fourth quarter of 2016, we took decisive action to bolster our credit infrastructure and to assess our loan portfolios. As 2017 is progressing, we have already begun to realize the positive results from these efforts, including a reduction of the portfolio loan balances we previously announced as targeted for planned exit.
During the first quarter, we reduced Technology and Healthcare Practice loans by over one-third each, while total enterprise value