Opus Bank reported earnings results for the first quarter of 2018. For the quarter, the company reported net income of $12.9 million or earnings per diluted share of $0.34. On a pretax, pre-provision basis, earnings increased 14% from the prior quarter to $20.9 million and increased 13% from the first quarter of 2017. Net interest income decreased 1% during the first quarter to $51.7 million, primarily due to lower interest income from cash and investment securities and a slightly higher cost of funds, which offset an increase in loan interest income. Tangible book value per as converted common share decreased $0.03 to $17.23, as the decrease in accumulated other comprehensive income offset the positive contribution of quarterly net income to retained earnings.

For the first quarter of 2018, the company reported gross charge-offs of $14.2 million, which were offset by $2.2 million in recoveries, resulting in $12 million in net charge-offs.

The company provided earnings guidance for the year 2018. The company expects net interest margin to gradually increase during the year to a range of 3.20% to 3.25%. The company anticipates that effective tax rate will be approximately 25% in 2018 based on evaluation of the effect of the recently enacted tax legislation. The company expects, as a result of its focus on operational excellence in both expense and revenue-generating strategies, that efficiency ratio will gradually improve with the goal of being below 65% in 2018.