Opus Bank (“Opus”) (Nasdaq: OPB) announced today the implementation of a data and technology-driven efficiency improvement strategy, which will eliminate unnecessary and redundant expenses, enable greater investment in revenue growth, and over time drive Opus’ efficiency ratio even lower, thereby further enhancing shareholder value.
The strategy includes a reduction of approximately 10% of Opus’ employee base, the majority of which was identified from within Opus’ Retail Banking distribution system and the remaining from support and administration roles throughout the company. Additionally, the expense reductions include the elimination of redundant systems and services contracted through third party providers. The initial expense reduction run rate totals approximately $7 million, while investments in revenue enhancements will be made over time.
Stephen H. Gordon, Founding Chairman, Chief Executive Officer and President of Opus Bank, stated, “While Opus may have an industry-leading efficiency ratio, that doesn’t mean we ever get comfortable. We don’t allow our strong revenue growth to mask our non-interest expense base. Instead, culturally, we continually turn over every stone in the company’s income statement looking for all opportunities to prudently reduce unnecessary non-interest expense while continuing to increase revenues.”
Jenny Simmons, Executive Vice President and Chief Operating Officer, commented, “The fast growth of Opus in its early years was accomplished in part through hearty staffing, speedy acquisition integrations, and third party vendor support, all of which resulted in spend that is no longer necessary. We are excited to be embarking on this phase of our evolution, which calls for the methodical use of data analytics, continuous business process improvement, and technology in order to further build for scalability and efficiency across the firm.” Ms. Simmons added, “Beginning this journey at this agile stage of our firm’s development will enable us to consistently focus on achieving the best possible operating leverage.”