Shares of Opus Bank (Nasdaq: OPB) closed more than 20% Monday after the Irvine bank reported third quarter earnings that missed analyst estimates; shares leveled off in Tuesday midday trading.
The bank reported earnings of 25 cents a share, missing the Zacks consensus estimate by two analysts for 36 cents and year ago earnings of 40 cents for the same period. Revenue of $60.3 million also missed the $67.2 million analyst consensus.
The bank said net interest margin, a key metric of profitability for banks, decreased 9 basis points to 2.98%, driven by an increase in the cost of deposits.
“We continue to battle through the industry-wide headwinds of elevated loan prepayments and rising cost of deposits, which negatively impacted our net interest margin,” Chief Executive Stephen Gordon said in a statement.
Shares fell to $20.35 and a $733 million market cap. The shares have fallen 34% since a 52-week high in June.