NasdaqGS:OPB

Stock Analysis Report

Executive Summary

Opus Bank provides various banking products, services, and solutions for small and mid-sized companies, entrepreneurs, real estate investors, professionals, and high net worth individuals.


Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

How has Opus Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: OPB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.3%

OPB

-1.0%

US Banks

0.5%

US Market


1 Year Return

24.8%

OPB

10.6%

US Banks

20.3%

US Market

Return vs Industry: OPB exceeded the US Banks industry which returned 10.6% over the past year.

Return vs Market: OPB exceeded the US Market which returned 20.3% over the past year.


Shareholder returns

OPBIndustryMarket
7 Day-0.3%-1.0%0.5%
30 Day10.0%-1.2%2.0%
90 Day7.9%0.4%9.4%
1 Year27.2%24.8%13.8%10.6%22.8%20.3%
3 Year34.1%28.7%23.5%14.6%50.1%40.4%
5 Year4.0%-2.6%74.0%54.2%73.1%54.1%

Price Volatility Vs. Market

How volatile is Opus Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Opus Bank undervalued compared to its fair value and its price relative to the market?

16.34x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: OPB ($27.86) is trading above our estimate of fair value ($8.1)

Significantly Below Fair Value: OPB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: OPB is poor value based on its PE Ratio (16.3x) compared to the Banks industry average (12.6x).

PE vs Market: OPB is good value based on its PE Ratio (16.3x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: OPB is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: OPB is good value based on its PB Ratio (0.9x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Opus Bank forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

5.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OPB's forecast earnings growth (5.5% per year) is above the savings rate (1.7%).

Earnings vs Market: OPB's earnings (5.5% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: OPB's earnings are forecast to grow, but not significantly.

Revenue vs Market: OPB's revenue (3.4% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: OPB's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OPB's Return on Equity is forecast to be low in 3 years time (6%).


Next Steps

Past Performance

How has Opus Bank performed over the past 5 years?

-4.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OPB has high quality earnings.

Growing Profit Margin: OPB's current net profit margins (24.2%) are higher than last year (13.4%).


Past Earnings Growth Analysis

Earnings Trend: OPB's earnings have declined by -4.5% per year over the past 5 years.

Accelerating Growth: OPB's earnings growth over the past year (108.6%) exceeds its 5-year average (-4.5% per year).

Earnings vs Industry: OPB earnings growth over the past year (108.6%) exceeded the Banks industry 12.3%.


Return on Equity

High ROE: OPB's Return on Equity (5.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Opus Bank's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: OPB has a low level of unsold assets or inventory.

Debt Coverage by Assets: OPB's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

Asset Level: OPB's level of assets compared to its equity is low.

Allowance for Bad Loans: OPB has a sufficient allowance for bad loans.

Low Risk Liabilities: OPB's liabilities are made up of primarily low risk sources of funding.

Loan Level: OPB has an acceptable proportion of non-loan assets held.

Low Risk Deposits: OPB's loans are broadly funded by customer deposits.

Level of Bad Loans: OPB has an appropriate level of bad loans (0.1%)


Next Steps

Dividend

What is Opus Bank's current dividend yield, its reliability and sustainability?

1.58%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OPB's dividend (1.58%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: OPB's dividend (1.58%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: OPB has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: OPB's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.8%), OPB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: OPB's dividends in 3 years are forecast to be well covered by earnings (28.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Paul Taylor (58yo)

0.8yrs

Tenure

Mr. Paul W. Taylor serves as Chief Executive Officer, President and Director of Opus Bank since May 01, 2019. He was a Director of Pacific Mercantile Bancorp and Pacific Mercantile Bank since March 04, 201 ...


Leadership Team

NamePositionTenureCompensationOwnership
Kevin Thompson
Executive VP & CFO2.3yrsUS$662.10k0.054% $549.9k
Edward Padilla
Vice Chairman0yrsUS$1.76m0.11% $1.1m
Brian Fitzmaurice
Vice Chairman & Senior Chief Credit Officer0yrsUS$2.13m0.096% $975.0k
Paul Taylor
President0.8yrsno data0.13% $1.4m
Jennifer Simmons
Executive VP & COO4.3yrsno data0.049% $497.8k
Brett Villaume
Senior VP & Director of Investor Relations0yrsno datano data
Angelee Harris
Executive VP & General Counsel0.7yrsno data0.014% $145.2k
Balaji Krishna
Executive VP3.2yrsno data0.031% $310.6k
Gregory von der Linden
Executive VP & Chief Human Resources Officer1.1yrsno data0.019% $195.6k
Curtis Glovier
Senior Executive VP3.5yrsUS$1.47m0.044% $449.7k

2.3yrs

Average Tenure

50yo

Average Age

Experienced Management: OPB's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paul Taylor
President0.8yrsno data0.13% $1.4m
David King
Independent Director3.3yrsno datano data
Marsha Cameron
Independent Director1.8yrsUS$188.42k0.021% $208.4k
Melanie Cibik
Director0.5yrsno data0.013% $134.9k
Paul Greig
Chairman of the Board2.1yrsUS$1.63m0.076% $772.5k
G. Durkee
Director0.8yrsno data0.015% $152.0k
Mary Thigpen
Director0.2yrsno data0.0073% $73.6k
Richard Thomas
Independent Director2.5yrsUS$255.03k0.028% $284.4k
Mark Deason
Independent Director2yrsno datano data

1.8yrs

Average Tenure

59.5yo

Average Age

Experienced Board: OPB's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: OPB insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Opus Bank's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Opus Bank
  • Ticker: OPB
  • Exchange: NasdaqGS
  • Founded: 1982
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$1.012b
  • Shares outstanding: 36.35m
  • Website: https://www.opusbank.com

Number of Employees


Location

  • Opus Bank
  • 19900 MacArthur Boulevard
  • 12th Floor
  • Irvine
  • California
  • 92612
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OPBNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 2014
OP7DB (Deutsche Boerse AG)YesCommon StockDEEURApr 2014

Biography

Opus Bank provides various banking products, services, and solutions for small and mid-sized companies, entrepreneurs, real estate investors, professionals, and high net worth individuals. The company accepts demand deposits, checking accounts, money market accounts, savings accounts, and certificates of deposit. Its loan products include multifamily residential loans, commercial real estate loans, commercial business loans, small business administration loans, and construction loans; and loans and lines for working capital, expansion, acquisitions, consolidation, and transition. The company also offers financial and advisory services related to raising equity capital, targeted acquisition and divestiture strategies, general mergers and acquisitions, debt and equity financing, balance sheet restructuring, valuation, strategy, and performance improvement. In addition, it provides commercial escrow services and facilitates tax-deferred commercial exchanges; and treasury, cash management, and depository solutions. As of January 28, 2019, it operated 47 banking offices, including 28 in California, 16 in the Seattle/Puget Sound region in Washington, 2 in the Phoenix metropolitan area of Arizona, and 1 in Portland, Oregon. The company was formerly known as Bay Cities National Bank. Opus Bank was founded in 1982 and is headquartered in Irvine, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 01:52
End of Day Share Price2020/02/19 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.