Opus Bank : Announces Expense Reduction and Efficiency Improvement Strategy

January 11, 2016

Opus Bank Announces Expense Reduction and Efficiency Improvement Strategy

- Enables Further Investment in Revenue Growth -

IRVINE, Calif. - January 11, 2016 - 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.'

About Opus Bank
Opus Bank is an FDIC insured California-chartered commercial bank with $6.2 billion of total assets, $5.0 billion of total loans, and $4.9 billion of total deposits as of September 30, 2015. Opus Bank provides high-value, relationship-based banking products, services, and solutions to its clients through its Retail Bank, Commercial Bank, Merchant Bank, and Correspondent Bank. Opus Bank offers a suite of treasury and cash management and depository solutions and a wide range of loan products, including commercial business, healthcare, technology, multifamily residential, commercial real estate, and structured finance, and is an SBA preferred lender. Opus Bank offers commercial escrow services and facilitates 1031 Exchange transactions through its Escrow and Exchange divisions. Opus Bank provides clients with 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 through its Merchant Banking division and its broker-dealer subsidiary, Opus Financial Partners. Opus Bank operates 58 client experience centers, including 33 in California, 22 in the Seattle/Puget Sound region in Washington, two in the Phoenix metropolitan area of Arizona, and one in Portland, Oregon. Opus Bank is an Equal Housing Lender.

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Forward-Looking Statements
This press release contains 'forward-looking statements.' These forward-looking statements include information, which is subject to change and subject to risks, uncertainties and assumptions. The forward-looking information presented in this press release is not a guarantee of future events, and actual events may differ materially from those made in or suggested by the forward-looking information contained in this press release. Forward-looking statements generally can be identified by the use of forward-looking terminology such as 'intend' or 'expect' or variations thereon or similar terminology. All such statements speak only as of the date made, and Opus Bank undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:
Mr. Jeff L. Leonard
SVP, Director of Corporate Communications
Telephone: [phone]

Source: Opus Bank