Opus Bank (NASDAQ:OPB) Q4 2019 Earnings Conference Call - Final Transcript
Jan 27, 2020 • 11:00 am ET
Good day, everyone, and welcome to the Opus Bank, Fourth Quarter 2019 Earnings Conference Call. My name is Jason, and I'll be your conference call coordinator today. [Operator Instructions]. Speaking on today's call will be Paul Taylor, President and Chief Executive Officer and Kevin Thompson, Executive Vice President and Chief Financial Officer.
Today's discussion will cover the Company's performance during the fourth quarter and full year 2019 and information contained in the earnings press release issued earlier this morning. A slide show presentation that accompanies today's call is available on the Opus Bank investor relations website at investor.opusbank.com/presentations.
This call is being recorded and will be made available for replay one hour after the end of the call. Information about how to access the recording is available on our Investors Relation website or in the earnings press release. 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 in the earnings press release issued earlier this morning.
Today's call will include a question-and-answer session following management's prepared remarks. Now I will turn the call over to Paul Taylor, President and CEO, for opening remarks. Sir, you may begin.
Paul W. Taylor
Thank you, Jason. Good morning everyone and thank you all for joining our fourth quarter call today and full year 2019 earnings conference call. Again, I'm Paul Taylor, I'm the President and CEO of Opus. Today I'll provide you a brief overview of the performance of the fourth quarter and 2019, and then I'm going to hand the reins over to Kevin Thompson, our Executive Vice President and Chief Financial Officer, and he'll go through the performance for the full year and the quarter.
We had another good quarter, our earnings were very good. We had $0.53 per share earnings per share, which was a beat to consensus. Our return on assets was 1.02%. Our efficiency ratio was 61.3%. We did have a $2.7 million negative provision, which also bolstered those returns.
We're very pleased with our commercial banking division. It funded $130 million in loans during the fourth quarter, which is up from $99 million in the third quarter of the year, and we do anticipate that trend to continue, that group is really gaining traction. Our credit quality continues to improve as nonperforming assets to total assets decreased to 7 basis points, very low in our industry as you know. We had further progress reducing problem loans, which resulted in our $2.7 million negative provision, which is actually down from our negative provision in the third quarter of the year of $7.7 million.
We also had a good quarter for deposit growth. We increased deposits by $204 million or 3.3%, that was primarily driven by PENSCO and our Commercial Banking unit. Our cost of deposits continues to come down and is mitigating some of the margin pressure that Opus Bank and