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 second-rate dividend payer.


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

0.8%

OPB

-0.3%

US Banks

1.7%

US Market


1 Year Return

17.6%

OPB

15.3%

US Banks

23.2%

US Market

Return vs Industry: OPB matched the US Banks industry which returned 17% over the past year.

Return vs Market: OPB underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

OPBIndustryMarket
7 Day0.8%-0.3%1.7%
30 Day-3.6%-2.0%4.2%
90 Day9.7%9.1%11.9%
1 Year19.9%17.6%18.6%15.3%25.8%23.2%
3 Year-4.4%-7.9%34.3%24.8%52.8%42.9%
5 Year4.9%-1.4%85.7%64.8%75.2%55.8%

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?

14.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OPB ($25.5) is trading below our estimate of fair value ($30.19)

Significantly Below Fair Value: OPB is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: OPB is poor value based on its PE Ratio (27.9x) compared to the Banks industry average (12.8x).

PE vs Market: OPB is poor value based on its PE Ratio (27.9x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: OPB is poor value based on its PEG Ratio (2.1x)


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 5 analysts?

13.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OPB's forecast earnings growth (13.2% per year) is above the savings rate (1.7%).

Earnings vs Market: OPB's earnings (13.2% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: OPB's revenue (4.9% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: OPB's revenue (4.9% 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 (6.6%).


Next Steps

Past Performance

How has Opus Bank performed over the past 5 years?

-7.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OPB has high quality earnings.

Growing Profit Margin: OPB's current net profit margins (14.1%) are lower than last year (15.6%).


Past Earnings Growth Analysis

Earnings Trend: OPB's earnings have declined by -7.8% per year over the past 5 years.

Accelerating Growth: OPB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: OPB had negative earnings growth (-10.6%) over the past year, making it difficult to compare to the Banks industry average (27.1%).


Return on Equity

High ROE: OPB's Return on Equity (3.2%) 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 covered by short term assets (assets are 1x 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 (0.13%)


Next Steps

Dividend

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

1.73%

Current Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%1.4%markettop25%3.6%industryaverage2.8%forecastin3Years2.0%

Current dividend yield vs market & industry

Notable Dividend: OPB's dividend (1.73%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: OPB's dividend (1.73%) is low compared to the top 25% of dividend payers in the US market (3.66%).


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 (48.1%), 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 (29.8% payout ratio).


Next Steps

Management

What is the CEO of Opus Bank's salary, the management and board of directors tenure and is there insider trading?

2.2yrs

Average management tenure


CEO

Paul Taylor (58yo)

0.7yrs

Tenure

0

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 ...


Management Age and Tenure

2.2yrs

Average Tenure

50yo

Average Age

Experienced Management: OPB's management team is considered experienced (2.2 years average tenure).


Board Age and Tenure

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.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$2,058,26315 Oct 19
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Elliott Management Corporation
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SellUS$42,22430 Apr 19
Joseph Simpson
EntityIndividual
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Paul Greig
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Chairman of the Board
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SellUS$15,46109 Apr 19
Balaji Krishna
EntityIndividual
Role
Head of Sales
Executive VP
Shares679
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Jennifer Simmons
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
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Jennifer Simmons
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Chief Operating Officer
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Paul Greig
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Paul Greig
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Ownership Breakdown

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


Management Team

  • Curtis Glovier (55yo)

    Senior Executive VP

    • Tenure: 3.4yrs
    • Compensation: US$1.47m
  • Brett Villaume

    Senior VP & Director of Investor Relations

    • Paul Taylor (58yo)

      President

      • Tenure: 0.7yrs
    • Angelee Harris (49yo)

      Executive VP & General Counsel

      • Tenure: 0.6yrs
    • Brian Fitzmaurice (58yo)

      Vice Chairman & Senior Chief Credit Officer

      • Compensation: US$2.13m
    • Balaji Krishna (43yo)

      Executive VP

      • Tenure: 3.1yrs
    • Ed Padilla (50yo)

      Vice Chairman

      • Compensation: US$1.76m
    • Jenny Simmons (45yo)

      Executive VP & COO

      • Tenure: 4.3yrs
    • Kevin Thompson (46yo)

      Executive VP & CFO

      • Tenure: 2.2yrs
      • Compensation: US$662.10k
    • Greg von der Linden (51yo)

      Executive VP & Chief Human Resources Officer

      • Tenure: 1yrs

    Board Members

    • David King (60yo)

      Independent Director

      • Tenure: 3.3yrs
    • Marsha Cameron (64yo)

      Independent Director

      • Tenure: 1.8yrs
      • Compensation: US$188.42k
    • Melanie Cibik (59yo)

      Director

      • Tenure: 0.4yrs
    • Paul Greig (63yo)

      Chairman of the Board

      • Tenure: 2yrs
      • Compensation: US$1.63m
    • Paul Taylor (58yo)

      President

      • Tenure: 0.7yrs
    • Mal Durkee

      Director

      • Tenure: 0.7yrs
    • Mimi Thigpen (59yo)

      Director

      • Tenure: 0.08yrs
    • Rich Thomas (70yo)

      Independent Director

      • Tenure: 2.4yrs
      • Compensation: US$255.03k
    • Mark Deason (41yo)

      Independent Director

      • Tenure: 1.9yrs

    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$922.840m
    • Shares outstanding: 36.30m
    • 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

    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 Analysis2020/01/17 02:12
    End of Day Share Price2020/01/16 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    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.