Opus Bank (NASDAQ:OPB) Q1 2018 Earnings Conference Call - Final Transcript
Apr 23, 2018 • 11:00 am ET
Good morning. My name is Tanya, and I will be your conference operator today. At this time, I'd like to welcome everyone to the Opus Bank's First Quarter 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] Thank you.
Mr. Brett Villaume, you may begin your conference.
Thank you, Tanya. Good morning, and welcome to Opus Bank's investor webcast and conference call. Today, I'm joined by Stephen Gordon, Opus Bank's Chief Executive Officer and President; Brian Fitzmaurice, Senior Executive Vice President and Senior Chief Credit Officer; Kevin Thompson, Executive Vice President and Chief Financial Officer; and Will Han, Deputy CFO.
Our discussion today will cover the company's performance during the first quarter of 2018 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 Harbor 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 7 of this morning's release.
Today's call will include a question-and-answer session following the discussion. For listeners who are participating via webcast, should you have any questions, you may submit those using the Q&A feature located on the right-hand side of your Webcast 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 up and closes the Q&A dialog box.
Now I will turn the call over to Stephen Gordon, CEO and President.
Thank you, Brett. I will now provide an overview of our results for the first quarter, and then Kevin Thompson, Chief Financial Officer and Brian Fitzmaurice, Senior Chief Credit Officer, will go into more detail on our financial performance and credit metrics. We will address questions at the end of our prepared remarks.
Opus' first quarter results marked a successful beginning to 2018, demonstrated by our disciplined growth and improving profitability, displaying continued momentum from 2017.
For the first quarter, we recorded net income of $12.9 million, or earnings per diluted share of $0.34. Included our net income this quarter were offsetting items, including $1.5 million of strategic initiative and severance-related expenses, $1.4 million of seasonally higher employer payroll taxes, and a $2.9 million recovery of professional services expense related to the settlement of a legal matter.
On a pre-tax pre-provision basis, earnings increased 14% from the prior quarter to $20.9 million and increased 13% from the first quarter of 2017. During the first quarter, we achieved $452 million in new loan fundings, which was more than doubled the level of new loan fundings achieved in the first quarter of last year.
For the second consecutive quarter, new loan fundings exceeded loan payoffs, which measured $271 million, including planned exits, resulting in