Opus Bank in Irvine, Calif., reported higher quarterly earnings that showed the up- and downside of efforts to clean up its balance sheet.
The $7.7 billion-asset company said in a press release Monday that its second-quarter profit rose 13% from a year earlier, to $18.2 million, or 48 cents a share.
Net interest income fell by 10.4% to $56 million. Total loans decreased by 15% to $5.2 billion and the net interest margin narrowed by 60 basis points to 3.20%, reflecting efforts to pare back exposure in areas such as technology and health care.
Opus recorded a $7 million reserve release in the quarter. It set aside about $11 million a year earlier.
Noninterest income rose by 12% to $14.7 million, led by a 7% increase in trust administrative fees.
Noninterest expenses increased by 27% to $48.7 million. Compensation and benefits rose by 21% to $26.8 million. The company also reported an increase in some costs tied an initiative to reduce expenses over the long term.
Opus announced sweeping moves last year after reporting back-to-back quarterly losses. It rebounded with a profitable first quarter.
