First Quarter 2024 Summary
- Net income of $47.0 million, or $0.49 per diluted
share
- Return on average assets of 0.99%, return on average equity
of 6.50%, and return on average tangible common equity(1) of
10.05%
- Pre-provision net revenue (“PPNR”)(1) to average assets of
1.43%, annualized
- Net interest margin expanded 11 basis points to
3.39%
- Cost of deposits of 1.59%, and cost of non-maturity
deposits(1) of 1.06%
- Non-maturity deposits(1) to total deposits of
84.42%
- Total delinquency of 0.09% of loans held for
investment
- Nonperforming assets to total assets of 0.34%
- Tangible book value per share(1) increased $0.11 compared to
the prior quarter to $20.33
- Common equity tier 1 capital ratio of 15.02%, and total
risk-based capital ratio of 18.23%
- Tangible common equity ratio (“TCE”)(1) increased to
10.97%
Pacific Premier Bancorp, Inc. (NASDAQ: PPBI) (the “Company” or
“Pacific Premier”), the holding company of Pacific Premier Bank
(the “Bank”), reported net income of $47.0 million, or $0.49 per
diluted share, for the first quarter of 2024, compared with net
loss of $135.4 million, or $1.44 per diluted share, for the fourth
quarter of 2023, and net income of $62.6 million, or $0.66 per
diluted share, for the first quarter of 2023.
For the first quarter of 2024, the Company’s return on average
assets (“ROAA”) was 0.99%, return on average equity (“ROAE”) was
6.50%, and return on average tangible common equity (“ROATCE”)(1)
was 10.05%, compared to (2.76)%, (19.01)%, and (28.01)%,
respectively, for the fourth quarter of 2023, and 1.15%, 8.87%, and
13.89%, respectively, for the first quarter of 2023. Total assets
were $18.81 billion at March 31, 2024, compared to $19.03 billion
at December 31, 2023, and $21.36 billion at March 31, 2023.
Steven R. Gardner, Chairman, Chief Executive Officer, and
President of the Company, commented, “Our team delivered solid
first quarter financial performance with net income of $47.0
million, or $0.49 per share, reflecting a full quarter’s benefit
from the securities portfolio repositioning as our net interest
margin expanded 11 basis points to 3.39%. Our commitment to prudent
and proactive risk, liquidity, and capital management in the
current dynamic environment continues to drive strong capital
levels that rank amongst the top of our peers, with our TCE(1)
ratio increasing 25 basis points to 10.97%.
“On the business development front, our dedicated relationship
managers, retail branch bankers, and treasury management teams
continue to successfully collaborate to expand our client base and
deepen existing client relationships. During the first quarter,
total deposits increased by $192 million, driven by a $120 million
increase in non-maturity deposits, enabling us to further reduce
FHLB borrowings by $400 million. Some of the quarterly deposit
inflows were seasonal in nature, which we expect to reverse as we
move through the year.
“First quarter asset quality trends remained strong, although
nonperforming loans increased to $63.8 million, primarily the
result of a single, diversified, Pacific Northwest commercial
banking relationship, wherein the borrower remains current on all
payments. Our team is actively engaged with the client and
continues to approach the relationship consistent with our
longstanding proactive approach to credit risk management.
“With our strong capital levels combined with our significant
loss absorbing capacity, we have strategically positioned the
company to perform in a variety of economic and credit scenarios.
There are a number of factors contributing to an uncertain outlook,
including ongoing inflationary pressures, interest rate volatility,
and domestic and international geopolitical risks. Our franchise
has been built on a culture of risk management and a proactive
approach to building sustainable franchise value. We will continue
to manage the business proactively and prudently while leveraging
the strength of our relationship banking teams to capitalize on
compelling opportunities as they may arise. I would like to thank
all Pacific Premier employees for their outstanding efforts during
the quarter, as well as all of our stakeholders for continuing to
support our organization.”
______________________________
(1)
Reconciliations of the non–U.S. generally
accepted accounting principles (“GAAP”) measures are set forth at
the end of this press release.
FINANCIAL HIGHLIGHTS
Three Months Ended
March 31,
December 31,
March 31,
(Dollars in
thousands, except per share data)
2024
2023
2023
Financial highlights
(unaudited)
Net income (loss)
$
47,025
$
(135,376
)
$
62,562
Net interest income
145,127
146,789
168,610
Diluted earnings (loss) per share
0.49
(1.44
)
0.66
Common equity dividend per share paid
0.33
0.33
0.33
ROAA
0.99
%
(2.76
)%
1.15
%
ROAE
6.50
(19.01
)
8.87
ROATCE (1)
10.05
(28.01
)
13.89
Pre-provision net revenue (loss) to
average assets (1)
1.43
(3.88
)
1.63
Net interest margin
3.39
3.28
3.44
Cost of deposits
1.59
1.56
0.94
Cost of non-maturity deposits (1)
1.06
1.02
0.54
Efficiency ratio (1)
60.2
60.1
51.7
Noninterest expense as a percent of
average assets
2.16
2.09
1.87
Total assets
$
18,813,181
$
19,026,645
$
21,361,564
Total deposits
15,187,828
14,995,626
17,207,810
Non-maturity deposits (1) as a percent of
total deposits
84.4
%
84.7
%
82.6
%
Noninterest-bearing deposits as a percent
of total deposits
32.9
32.9
36.1
Loan-to-deposit ratio
85.7
88.6
82.4
Nonperforming assets as a percent of total
assets
0.34
0.13
0.14
Delinquency as a percentage of loans held
for investment
0.09
0.08
0.15
Allowance for credit losses to loans held
for investment (2)
1.48
1.45
1.38
Book value per share
$
30.09
$
30.07
$
29.58
Tangible book value per share (1)
20.33
20.22
19.61
Tangible common equity ratio (1)
10.97
%
10.72
%
9.20
%
Common equity tier 1 capital ratio
15.02
14.32
13.54
Total capital ratio
18.23
17.29
16.33
______________________________
(1)
Reconciliations of the non-GAAP measures
are set forth at the end of this press release.
(2)
At March 31, 2024, 25% of loans held for
investment include a fair value net discount of $41.2 million, or
0.32% of loans held for investment. At December 31, 2023, 24% of
loans held for investment include a fair value net discount of
$43.3 million, or 0.33% of loans held for investment. At March 31,
2023, 26% of loans held for investment include a fair value net
discount of $52.2 million, or 0.37% of loans held for
investment.
INCOME STATEMENT HIGHLIGHTS
Net Interest Income and Net Interest Margin
Net interest income totaled $145.1 million in the first quarter
of 2024, a decrease of $1.7 million, or 1.1%, from the fourth
quarter of 2023. The decrease in net interest income was primarily
attributable to lower average interest-earning asset balances, a
higher cost of funds, and one less day of interest, partially
offset by higher yields on interest-earning assets, as well as
lower average borrowings.
The net interest margin for the first quarter of 2024 increased
11 basis points to 3.39%, from 3.28% in the prior quarter. The
increase was primarily due to higher yields on investment
securities as a result of a full quarter's benefit from the
securities repositioning to higher-yielding available-for-sale
(“AFS”) Treasury securities, partially offset by a higher cost of
funds.
Net interest income for the first quarter of 2024 decreased
$23.5 million, or 13.9%, compared to the first quarter of 2023. The
decrease was attributable to a higher cost of funds and lower
average interest-earning asset balances, partially offset by lower
average interest-bearing liabilities and higher yields on average
interest-earning assets, all the result of the higher interest rate
environment and the Company's balance sheet management strategies
to prioritize capital accumulation.
PACIFIC PREMIER BANCORP, INC.
AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCES
AND YIELD DATA
(Unaudited)
Three Months Ended
March 31, 2024
December 31, 2023
March 31, 2023
(Dollars in
thousands)
Average Balance
Interest Income/
Expense
Average Yield/
Cost
Average Balance
Interest Income/
Expense
Average Yield/
Cost
Average Balance
Interest Income/
Expense
Average Yield/ Cost
Assets
Cash and cash equivalents
$
1,140,909
$
13,638
4.81
%
$
1,281,793
$
15,744
4.87
%
$
1,335,611
$
13,594
4.13
%
Investment securities
2,948,170
26,818
3.64
3,203,608
24,675
3.08
4,165,681
26,791
2.57
Loans receivable, net (1) (2)
13,149,038
172,975
5.29
13,257,767
176,773
5.29
14,394,775
180,958
5.10
Total interest-earning assets
$
17,238,117
$
213,431
4.98
$
17,743,168
$
217,192
4.86
$
19,896,067
$
221,343
4.51
Liabilities
Interest-bearing deposits
$
10,058,808
$
59,506
2.38
%
$
10,395,116
$
60,915
2.32
%
$
11,104,624
$
40,234
1.47
%
Borrowings
850,811
8,798
4.15
942,689
9,488
4.01
1,319,114
12,499
3.83
Total interest-bearing liabilities
$
10,909,619
$
68,304
2.52
$
11,337,805
$
70,403
2.46
$
12,423,738
$
52,733
1.72
Noninterest-bearing deposits
$
4,996,939
$
5,141,585
$
6,219,818
Net interest income
$
145,127
$
146,789
$
168,610
Net interest margin (3)
3.39
%
3.28
%
3.44
%
Cost of deposits (4)
1.59
1.56
0.94
Cost of funds (5)
1.73
1.69
1.15
Cost of non-maturity deposits (6)
1.06
1.02
0.54
Ratio of interest-earning assets to
interest-bearing liabilities
158.01
156.50
160.15
______________________________
(1)
Average balance includes loans held for
sale and nonperforming loans and is net of deferred loan
origination fees/costs, discounts/premiums, and the basis
adjustment of certain loans included in fair value hedging
relationships.
(2)
Interest income includes net discount
accretion of $2.1 million, $2.6 million, and $2.5 million for the
three months ended March 31, 2024, December 31, 2023, and March 31,
2023, respectively.
(3)
Represents annualized net interest income
divided by average interest-earning assets.
(4)
Represents annualized interest expense on
deposits divided by the sum of average interest-bearing deposits
and noninterest-bearing deposits.
(5)
Represents annualized total interest
expense divided by the sum of average total interest-bearing
liabilities and noninterest-bearing deposits.
(6)
Reconciliations of the non-GAAP measures
are set forth at the end of this press release.
Provision for Credit Losses
For the first quarter of 2024, the Company recorded a $3.9
million provision expense, compared to $1.7 million for the fourth
quarter of 2023, and $3.0 million for the first quarter of 2023.
The provision for credit losses was largely attributable to
increases associated with economic forecasts, partially offset by
changes to the overall size and composition of the loan
portfolio.
Three Months Ended
March 31,
December 31,
March 31,
(Dollars in
thousands)
2024
2023
2023
Provision for credit losses
Provision for loan losses
$
6,288
$
8,275
$
3,021
Provision for unfunded commitments
(2,425
)
(6,577
)
(189
)
Provision for held-to-maturity
securities
(11
)
(2
)
184
Total provision for credit losses
$
3,852
$
1,696
$
3,016
Noninterest Income
Noninterest income for the first quarter of 2024 was $25.8
million, an increase of $260.0 million from the fourth quarter of
2023. The increase was related to the investment securities
portfolio repositioning which resulted in a loss of $254.1 million
during the fourth quarter of 2023. Excluding the prior quarter's
loss, noninterest income increased $5.9 million, primarily due to a
$5.1 million gain on debt extinguishment resulting from an early
redemption of a $200.0 million Federal Home Loan Bank of San
Francisco (“FHLB”) term advance as well as a $1.3 million increase
in trust custodial account fees driven by annual tax fees earned
during the current quarter.
Noninterest income for the first quarter of 2024 increased $4.6
million compared to the first quarter of 2023. The increase was
primarily due to a $5.1 million gain on debt extinguishment
resulting from an early redemption of a $200.0 million FHLB term
advance during the current quarter.
Three Months Ended
March 31,
December 31,
March 31,
(Dollars in
thousands)
2024
2023
2023
Noninterest income
Loan servicing income
$
529
$
359
$
573
Service charges on deposit accounts
2,688
2,648
2,629
Other service fee income
336
322
296
Debit card interchange fee income
765
844
803
Earnings on bank owned life insurance
4,159
3,678
3,374
Net (loss) gain from sales of loans
—
(4
)
29
Net (loss) gain from sales of investment
securities
—
(254,065
)
138
Trust custodial account fees
10,642
9,388
11,025
Escrow and exchange fees
696
1,074
1,058
Other income
5,959
1,562
1,261
Total noninterest income (loss)
$
25,774
$
(234,194
)
$
21,186
Noninterest Expense
Noninterest expense totaled $102.6 million for the first quarter
of 2024, a decrease of $137,000 compared to the fourth quarter of
2023. The results were impacted by a $523,000 FDIC special
assessment in the first quarter of 2024 and a $2.1 million FDIC
special assessment during the fourth quarter of 2023. Excluding the
special assessments, noninterest expense increased $1.4 million,
primarily due to a $2.2 million increase in compensation and
benefits related to higher payroll taxes and the annual
equity-based compensation awards, as well as a $1.5 million
increase in deposit expense due to higher deposit earnings credit
rates, partially offset by a $1.1 million decrease in other
expense.
Noninterest expense for the first quarter of 2024 increased by
$1.3 million compared to the first quarter of 2023. The increase
was primarily due to a $4.2 million increase in deposit expense,
partially offset by a $1.4 million decrease in legal and
professional services and a $935,000 decrease in premises and
occupancy.
Three Months Ended
March 31,
December 31,
March 31,
(Dollars in
thousands)
2024
2023
2023
Noninterest expense
Compensation and benefits
$
54,130
$
51,907
$
54,293
Premises and occupancy
10,807
11,183
11,742
Data processing
7,511
7,409
7,265
Other real estate owned operations,
net
46
103
108
FDIC insurance premiums
2,629
4,267
2,425
Legal and professional services
4,143
4,663
5,501
Marketing expense
1,558
1,728
1,838
Office expense
1,093
1,367
1,232
Loan expense
770
437
646
Deposit expense
12,665
11,152
8,436
Amortization of intangible assets
2,836
3,022
3,171
Other expense
4,445
5,532
4,695
Total noninterest expense
$
102,633
$
102,770
$
101,352
Income Tax
For the first quarter of 2024, income tax expense totaled $17.4
million, resulting in an effective tax rate of 27.0%, compared with
income tax benefit of $56.5 million and an effective tax rate of
29.4% for the fourth quarter of 2023, and income tax expense of
$22.9 million and an effective tax rate of 26.8% for the first
quarter of 2023. The income tax benefit in the prior quarter was
primarily attributable to the pretax loss from sales of AFS
securities recorded for the fourth quarter of 2023, driven by the
Company's balance sheet repositioning.
BALANCE SHEET HIGHLIGHTS
Loans
Loans held for investment totaled $13.01 billion at March 31,
2024, a decrease of $276.9 million, or 2.1%, from December 31,
2023, and a decrease of $1.16 billion, or 8.2%, from March 31,
2023. The decrease from December 31, 2023 was primarily due to
lower loan production and fundings, as well as a decrease in credit
line draws, partially offset by slower loan prepayments and
maturities.
During the first quarter of 2024, new loan commitments totaled
$45.6 million, and new loan fundings totaled $14.0 million,
compared with $128.1 million in loan commitments and $103.7 million
in new loan fundings for the fourth quarter of 2023, and $116.8
million in loan commitments and $66.9 million in new loan fundings
for the first quarter of 2023. During the first quarter of 2024,
new origination activity remained muted given the uncertain
economic and interest rate outlook as well as softer borrower
demand.
At March 31, 2024, the total loan-to-deposit ratio was 85.7%,
compared to 88.6% and 82.4% at December 31, 2023 and March 31,
2023, respectively.
The following table presents the primary loan roll-forward
activities for total gross loans, including both loans held for
investment and loans held for sale, during the quarters
indicated:
Three Months Ended
March 31,
December 31,
March 31,
(Dollars in
thousands)
2024
2023
2023
Beginning gross loan balance before basis
adjustment
$
13,318,571
$
13,319,591
$
14,740,867
New commitments
45,563
128,102
116,835
Unfunded new commitments
(31,531
)
(24,429
)
(49,891
)
Net new fundings
14,032
103,673
66,944
Amortization/maturities/payoffs
(358,863
)
(422,607
)
(519,986
)
Net draws on existing lines of credit
109,860
354,711
(53,436
)
Loan sales
(32,676
)
(32,464
)
(803
)
Charge-offs
(6,529
)
(4,138
)
(3,664
)
Transferred to other real estate owned
—
(195
)
(6,886
)
Net decrease
(274,176
)
(1,020
)
(517,831
)
Ending gross loan balance before basis
adjustment
$
13,044,395
$
13,318,571
$
14,223,036
Basis adjustment associated with fair
value hedge (1)
(32,324
)
(29,551
)
(50,005
)
Ending gross loan balance
$
13,012,071
$
13,289,020
$
14,173,031
______________________________
(1)
Represents the basis adjustment associated
with the application of hedge accounting on certain loans.
The following table presents the composition of the loans held
for investment as of the dates indicated:
March 31,
December 31,
March 31,
(Dollars in
thousands)
2024
2023
2023
Investor loans secured by real
estate
Commercial real estate (“CRE”)
non-owner-occupied
$
2,309,252
$
2,421,772
$
2,590,824
Multifamily
5,558,966
5,645,310
5,955,239
Construction and land
486,734
472,544
420,079
SBA secured by real estate (1)
35,206
36,400
40,669
Total investor loans secured by real
estate
8,390,158
8,576,026
9,006,811
Business loans secured by real estate
(2)
CRE owner-occupied
2,149,362
2,191,334
2,342,175
Franchise real estate secured
294,938
304,514
371,902
SBA secured by real estate (3)
48,426
50,741
60,527
Total business loans secured by real
estate
2,492,726
2,546,589
2,774,604
Commercial loans (4)
Commercial and industrial (“C&I”)
1,774,487
1,790,608
1,967,128
Franchise non-real estate secured
301,895
319,721
388,722
SBA non-real estate secured
10,946
10,926
10,437
Total commercial loans
2,087,328
2,121,255
2,366,287
Retail loans
Single family residential (5)
72,353
72,752
70,913
Consumer
1,830
1,949
3,174
Total retail loans
74,183
74,701
74,087
Loans held for investment before basis
adjustment (6)
13,044,395
13,318,571
14,221,789
Basis adjustment associated with fair
value hedge (7)
(32,324
)
(29,551
)
(50,005
)
Loans held for investment
13,012,071
13,289,020
14,171,784
Allowance for credit losses for loans held
for investment
(192,340
)
(192,471
)
(195,388
)
Loans held for investment, net
$
12,819,731
$
13,096,549
$
13,976,396
Total unfunded loan commitments
$
1,459,515
$
1,703,470
$
2,413,169
Loans held for sale, at lower of cost or
fair value
$
—
$
—
$
1,247
______________________________
(1)
SBA loans that are collateralized by
hotel/motel real property.
(2)
Loans to businesses that are
collateralized by real estate where the operating cash flow of the
business is the primary source of repayment.
(3)
SBA loans that are collateralized by real
property other than hotel/motel real property.
(4)
Loans to businesses where the operating
cash flow of the business is the primary source of repayment.
(5)
Single family residential includes home
equity lines of credit, as well as second trust deeds.
(6)
Includes net deferred origination costs
(fees) of $797,000, $(74,000), and $(745,000), and unaccreted fair
value net purchase discounts of $41.2 million, $43.3 million, and
$52.2 million as of March 31, 2024, December 31, 2023, and March
31, 2023, respectively.
(7)
Represents the basis adjustment associated
with the application of hedge accounting on certain loans.
The total end-of-period weighted average interest rate on loans,
excluding fees and discounts, at March 31, 2024 was 4.91%, compared
to 4.87% at December 31, 2023, and 4.68% at March 31, 2023. The
quarter-over-quarter and year-over-year increases reflect higher
rates on new originations and the repricing of loans as a result of
the increases in benchmark interest rates.
The following table presents the composition of loan commitments
originated during the quarters indicated:
Three Months Ended
March 31,
December 31,
March 31,
(Dollars in
thousands)
2024
2023
2023
Investor loans secured by real
estate
CRE non-owner-occupied
$
850
$
1,450
$
1,200
Multifamily
480
94,462
4,464
Total investor loans secured by real
estate
1,330
95,912
5,664
Business loans secured by real estate
(1)
CRE owner-occupied
6,745
3,870
6,562
Franchise real estate secured
—
—
3,217
SBA secured by real estate (2)
—
—
497
Total business loans secured by real
estate
6,745
3,870
10,276
Commercial loans (3)
Commercial and industrial
32,477
24,766
93,150
Franchise non-real estate secured
—
—
1,666
SBA non-real estate secured
—
—
720
Total commercial loans
32,477
24,766
95,536
Retail loans
Single family residential (4)
4,936
3,554
5,359
Consumer
75
—
—
Total retail loans
5,011
3,554
5,359
Total loan commitments
$
45,563
$
128,102
$
116,835
______________________________
(1)
Loans to businesses that are
collateralized by real estate where the operating cash flow of the
business is the primary source of repayment.
(2)
SBA loans that are collateralized by real
property other than hotel/motel real property.
(3)
Loans to businesses where the operating
cash flow of the business is the primary source of repayment.
(4)
Single family residential includes home
equity lines of credit, as well as second trust deeds.
The weighted average interest rate on new loan commitments
increased to 8.62% in the first quarter of 2024, compared to 6.34%
in the fourth quarter of 2023, and 7.43% in the first quarter of
2023.
Asset Quality and Allowance for Credit Losses
At March 31, 2024, our allowance for credit losses (“ACL”) on
loans held for investment was $192.3 million, a decrease of
$131,000 from December 31, 2023, and a decrease of $3.0 million
from March 31, 2023. The decrease in the ACL from December 31, 2023
and March 31, 2023 reflects the relative changes in size and
composition in our loans held for investment, partially offset by
changes in economic forecasts.
During the first quarter of 2024, the Company incurred $6.4
million of net charge-offs, primarily related to the sale of
special mention and substandard CRE and franchise loans during the
quarter, compared to $3.9 million during the fourth quarter of
2023, and $3.3 million during the first quarter of 2023.
The following table provides the allocation of the ACL for loans
held for investment as well as the activity in the ACL attributed
to various segments in the loan portfolio as of and for the period
indicated:
Three Months Ended March 31,
2024
(Dollars in
thousands)
Beginning ACL Balance
Charge-offs
Recoveries
Provision for Credit
Losses
Ending ACL
Balance
Investor loans secured by real
estate
CRE non-owner-occupied
$
31,030
$
(927
)
$
—
$
678
$
30,781
Multifamily
56,312
—
5
2,094
58,411
Construction and land
9,314
—
—
(1,143
)
8,171
SBA secured by real estate (1)
2,182
(253
)
—
255
2,184
Business loans secured by real estate
(2)
CRE owner-occupied
28,787
(4,452
)
63
4,362
28,760
Franchise real estate secured
7,499
(212
)
—
(29
)
7,258
SBA secured by real estate (3)
4,427
—
1
(140
)
4,288
Commercial loans (4)
Commercial and industrial
36,692
(585
)
39
961
37,107
Franchise non-real estate secured
15,131
(100
)
—
(711
)
14,320
SBA non-real estate secured
458
—
2
35
495
Retail loans
Single family residential (5)
505
—
—
(63
)
442
Consumer loans
134
—
—
(11
)
123
Totals
$
192,471
$
(6,529
)
$
110
$
6,288
$
192,340
______________________________
(1)
SBA loans that are collateralized by
hotel/motel real property.
(2)
Loans to businesses that are
collateralized by real estate where the operating cash flow of the
business is the primary source of repayment.
(3)
SBA loans that are collateralized by real
property other than hotel/motel real property.
(4)
Loans to businesses where the operating
cash flow of the business is the primary source of repayment.
(5)
Single family residential includes home
equity lines of credit, as well as second trust deeds.
The ratio of ACL to loans held for investment at March 31, 2024
increased to 1.48%, compared to 1.45% at December 31, 2023, and
1.38% at March 31, 2023. The fair value net discount on loans
acquired through acquisitions was $41.2 million, or 0.32% of total
loans held for investment, as of March 31, 2024, compared to $43.3
million, or 0.33% of total loans held for investment, as of
December 31, 2023, and $52.2 million, or 0.37% of total loans held
for investment, as of March 31, 2023.
Nonperforming assets totaled $64.1 million, or 0.34% of total
assets, at March 31, 2024, compared with $25.1 million, or 0.13% of
total assets, at December 31, 2023, and $30.4 million, or 0.14% of
total assets, at March 31, 2023. The increase in nonperforming
assets at March 31, 2024, was primarily the result of loans to one
borrower relationship totaling $37.6 million, all of which were
current as of March 31, 2024. Loan delinquencies were $12.2
million, or 0.09% of loans held for investment, at March 31, 2024,
compared to $10.1 million, or 0.08% of loans held for investment,
at December 31, 2023, and $20.8 million, or 0.15% of loans held for
investment, at March 31, 2023.
Classified loans totaled $204.7 million, or 1.57% of loans held
for investment, at March 31, 2024, compared with $142.0 million, or
1.07% of loans held for investment, at December 31, 2023, and
$161.1 million, or 1.14% of loans held for investment, at March 31,
2023. The increase in classified loans included the $37.6 million
in loans related to one borrower relationship that were placed on
nonaccrual during the first quarter of 2024 and remained current as
of March 31, 2024.
The following table presents the asset quality metrics of the
loan portfolio as of the dates indicated.
March 31,
December 31,
March 31,
(Dollars in
thousands)
2024
2023
2023
Asset quality
Nonperforming loans
$
63,806
$
24,817
$
24,872
Other real estate owned
248
248
5,499
Nonperforming assets
$
64,054
$
25,065
$
30,371
Total classified assets (1)
$
204,937
$
142,210
$
166,576
Allowance for credit losses
192,340
192,471
195,388
Allowance for credit losses as a percent
of total nonperforming loans
301
%
776
%
786
%
Nonperforming loans as a percent of loans
held for investment
0.49
0.19
0.18
Nonperforming assets as a percent of total
assets
0.34
0.13
0.14
Classified loans to total loans held for
investment
1.57
1.07
1.14
Classified assets to total assets
1.09
0.75
0.78
Net loan charge-offs for the quarter
ended
$
6,419
$
3,902
$
3,284
Net loan charge-offs for the quarter to
average total loans
0.05
%
0.03
%
0.02
%
Allowance for credit losses to loans held
for investment (2)
1.48
1.45
1.38
Delinquent loans (3)
30 - 59 days
$
1,983
$
2,484
$
761
60 - 89 days
974
1,294
1,198
90+ days
9,221
6,276
18,884
Total delinquency
$
12,178
$
10,054
$
20,843
Delinquency as a percentage of loans held
for investment
0.09
%
0.08
%
0.15
%
______________________________
(1)
Includes substandard and doubtful loans,
and other real estate owned.
(2)
At March 31, 2024, 25% of loans held for
investment include a fair value net discount of $41.2 million, or
0.32% of loans held for investment. At December 31, 2023, 24% of
loans held for investment include a fair value net discount of
$43.3 million, or 0.33% of loans held for investment. At March 31,
2023, 26% of loans held for investment include a fair value net
discount of $52.2 million, or 0.37% of loans held for
investment.
(3)
Nonaccrual loans are included in this
aging analysis based on the loan's past due status.
Investment Securities
At March 31, 2024, AFS and held-to-maturity (“HTM”) investment
securities were $1.15 billion and $1.72 billion, respectively,
compared to $1.14 billion and $1.73 billion, respectively, at
December 31, 2023, and $2.11 billion and $1.75 billion,
respectively, at March 31, 2023.
In total, investment securities were $2.87 billion at March 31,
2024, an increase of $4.9 million from December 31, 2023, and a
decrease of $987.4 million from March 31, 2023. The increase in the
first quarter of 2024 compared to the prior quarter was primarily
the result of $170.2 million in purchases and a decrease of $1.9
million in AFS investment securities mark-to-market unrealized
loss, partially offset by $167.3 million in principal payments,
amortization and accretion, and redemptions.
The decrease in investment securities from March 31, 2023 was
primarily the result of $1.52 billion in sales of AFS investment
securities and $410.9 million in principal payments, discounts from
the AFS securities transferred to HTM, partially offset by $722.7
million in purchases of AFS and HTM investment securities and a
decrease of $219.0 million in AFS securities mark-to-market
unrealized loss.
Deposits
At March 31, 2024, total deposits were $15.19 billion, an
increase of $192.2 million, or 1.3%, from December 31, 2023, and a
decrease of $2.02 billion, or 11.7%, from March 31, 2023. The
increase from the prior quarter was largely driven by increases of
$169.2 million in money market and savings, $110.3 million in
retail certificates of deposit, and $64.8 million in
noninterest-bearing checking, partially offset by reductions of
$114.0 million in interest-bearing checking and $38.1 million in
brokered certificates of deposit. The decrease from March 31, 2023
was attributable to the decreases of $1.21 billion in
noninterest-bearing checking and $1.17 billion in brokered
certificates of deposit.
At March 31, 2024, non-maturity deposits(1) totaled $12.82
billion, or 84.4% of total deposits, an increase of $120.0 million,
or 0.9%, from December 31, 2023, and a decrease of $1.39 billion,
or 9.8%, from March 31, 2023. The increase from prior quarter was
largely driven by seasonal deposit growth within our HOA business.
The decrease from the first quarter of 2023 was attributable to the
continued effect of clients prepaying or paying down loans and
redeploying funds into higher yielding alternatives.
At March 31, 2024, maturity deposits totaled $2.37 billion, an
increase of $72.2 million, or 3.1%, from December 31, 2023, and a
decrease of $631.1 million, or 21.1%, from March 31, 2023. The
increase in the first quarter of 2024 compared to the prior quarter
was primarily driven by an increase of $110.3 million in retail
certificates of deposit, partially offset by the reduction of $38.1
million in brokered certificates of deposit. The decrease from
March 31, 2023 was primarily driven by decreases in brokered
certificates of deposit.
The weighted average cost of total deposits for the first
quarter of 2024 was 1.59%, compared to 1.56% for the fourth quarter
of 2023, and 0.94% for the first quarter of 2023. The increases in
the weighted average cost of deposits for the first quarter of
2024, compared to the fourth quarter of 2023 and the first quarter
of 2023, were principally driven by higher pricing across deposit
categories. The weighted average cost of non-maturity deposits(1)
for the first quarter of 2024 was 1.06%, compared to 1.02% for the
fourth quarter of 2023, and 0.54% for the first quarter of
2023.
At March 31, 2024, the end-of-period weighted average rate of
total deposits was 1.66%, compared to 1.55% at December 31, 2023,
and 1.15% at March 31, 2023. At March 31, 2024, the end-of-period
weighted average rate of non-maturity deposits was 1.12%, compared
to 1.04% at December 31, 2023, and 0.61% at March 31, 2023.
At March 31, 2024, the Company’s FDIC-insured deposits as a
percentage of total deposits was 60%. Insured and collateralized
deposits comprised 66% of total deposits at March 31, 2024, which
was the same level at December 31, 2023.
______________________________
(1)
Reconciliations of the non-GAAP measures
are set forth at the end of this press release.
The following table presents the composition of deposits as of
the dates indicated.
March 31,
December 31,
March 31,
(Dollars in
thousands)
2024
2023
2023
Deposit accounts
Noninterest-bearing checking
$
4,997,636
$
4,932,817
$
6,209,104
Interest-bearing:
Checking
2,785,626
2,899,621
2,871,812
Money market/savings
5,037,636
4,868,442
5,128,857
Total non-maturity deposits (1)
12,820,898
12,700,880
14,209,773
Retail certificates of deposit
1,794,813
1,684,560
1,257,146
Wholesale/brokered certificates of
deposit
572,117
610,186
1,740,891
Total maturity deposits
2,366,930
2,294,746
2,998,037
Total deposits
$
15,187,828
$
14,995,626
$
17,207,810
Cost of deposits
1.59
%
1.56
%
0.94
%
Cost of non-maturity deposits (1)
1.06
1.02
0.54
Noninterest-bearing deposits as a percent
of total deposits
32.9
32.9
36.1
Non-maturity deposits (1) as a percent of
total deposits
84.4
84.7
82.6
______________________________
(1)
Reconciliations of the non-GAAP measures
are set forth at the end of this press release.
Borrowings
At March 31, 2024, total borrowings amounted to $532.0 million,
a decrease of $399.8 million from December 31, 2023, and a decrease
of $599.4 million from March 31, 2023. Total borrowings at March
31, 2024 were comprised of $200.0 million of FHLB term advances and
$332.0 million of subordinated debt. The decrease in borrowings at
March 31, 2024 as compared to December 31, 2023 was due to a
decrease of $400.0 million in FHLB term advances. The decrease in
borrowings at March 31, 2024 as compared to March 31, 2023 was due
to a decrease of $600.0 million in FHLB term advances.
As of March 31, 2024, our unused borrowing capacity was $8.53
billion, which consists of available lines of credit with FHLB and
other correspondent banks as well as access through the Federal
Reserve Bank's discount window, which was not utilized during the
first quarter of 2024.
Capital Ratios
At March 31, 2024, our common stockholders' equity was $2.90
billion, or 15.43% of total assets, compared with $2.88 billion, or
15.15%, at December 31, 2023, and $2.83 billion, or 13.25%, at
March 31, 2023, with a book value per share of $30.09, compared
with $30.07 at December 31, 2023, and $29.58 at March 31, 2023. At
March 31, 2024, the ratio of tangible common equity to tangible
assets(1) was 10.97%, compared with 10.72% at December 31, 2023,
and 9.20% at March 31, 2023, and tangible book value per share(1)
was $20.33, compared with $20.22 at December 31, 2023, and $19.61
at March 31, 2023.
______________________________
(1)
Reconciliations of the non-GAAP measures
are set forth at the end of this press release.
The Company implemented the current expected credit losses
(“CECL”) model on January 1, 2020 and elected to phase in the full
effect of CECL on regulatory capital over the five-year transition
period. In the first quarter of 2022, the Company began phasing
into regulatory capital the cumulative adjustments at the end of
the second year of the transition period at 25% per year. At March
31, 2024, the Company and Bank were in compliance with the capital
conservation buffer requirement and exceeded the minimum Common
Equity Tier 1, Tier 1, and total capital ratios, inclusive of the
fully phased-in capital conservation buffer of 7.0%, 8.5%, and
10.5%, respectively, and the Bank qualified as “well capitalized”
for purposes of the federal bank regulatory prompt corrective
action regulations.
March 31,
December 31,
March 31,
Capital ratios
2024
2023
2023
Pacific Premier Bancorp, Inc.
Consolidated
Tier 1 leverage ratio
11.48
%
11.03
%
10.41
%
Common equity tier 1 capital ratio
15.02
14.32
13.54
Tier 1 capital ratio
15.02
14.32
13.54
Total capital ratio
18.23
17.29
16.33
Tangible common equity ratio (1)
10.97
10.72
9.20
Pacific Premier Bank
Tier 1 leverage ratio
12.97
%
12.43
%
11.93
%
Common equity tier 1 capital ratio
16.96
16.13
15.52
Tier 1 capital ratio
16.96
16.13
15.52
Total capital ratio
18.21
17.23
16.55
Share data
Book value per share
$
30.09
$
30.07
$
29.58
Tangible book value per share (1)
20.33
20.22
19.61
Common equity dividends declared per
share
0.33
0.33
0.33
Closing stock price (2)
24.00
29.11
24.02
Shares issued and outstanding
96,459,966
95,860,092
95,714,777
Market capitalization (2)(3)
$
2,315,039
$
2,790,487
$
2,299,069
______________________________
(1)
Reconciliations of the non-GAAP measures
are set forth at the end of this press release.
(2)
As of the last trading day prior to period
end.
(3)
Dollars in thousands.
Dividend and Stock Repurchase Program
On April 22, 2024, the Company's Board of Directors declared a
$0.33 per share dividend, payable on May 13, 2024 to stockholders
of record as of May 6, 2024. In January 2021, the Company’s Board
of Directors approved a stock repurchase program, which authorized
the repurchase of up to 4,725,000 shares of its common stock.
During the first quarter of 2024, the Company did not repurchase
any shares of common stock.
Conference Call and Webcast
The Company will host a conference call at 9:00 a.m. PT / 12:00
p.m. ET on April 24, 2024 to discuss its financial results.
Analysts and investors may participate in the question-and-answer
session. A live webcast will be available on the Webcasts page of
the Company's investor relations website. An archived version of
the webcast will be available in the same location shortly after
the live call has ended. The conference call can be accessed by
telephone at (866) 290-5977. Participants should ask to be joined
to the Pacific Premier Bancorp, Inc. call. Additionally, a
telephone replay will be made available through May 1, 2024, at
(877) 344-7529, replay code 4066481.
About Pacific Premier Bancorp, Inc.
Pacific Premier Bancorp, Inc. (Nasdaq: PPBI) is the parent
company of Pacific Premier Bank, a California-based commercial bank
focused on serving small, middle-market, and corporate businesses
throughout the western United States in major metropolitan markets
in California, Washington, Oregon, Arizona, and Nevada. Founded in
1983, Pacific Premier Bank has grown to become one of the largest
banks headquartered in the western region of the United States,
with approximately $19 billion in total assets. Pacific Premier
Bank provides banking products and services, including deposit
accounts, digital banking, and treasury management services, to
businesses, professionals, entrepreneurs, real estate investors,
and nonprofit organizations. Pacific Premier Bank also offers a
wide array of loan products, such as commercial business loans,
lines of credit, SBA loans, commercial real estate loans,
agribusiness loans, franchise lending, home equity lines of credit,
and construction loans. Pacific Premier Bank offers commercial
escrow services and facilitates 1031 Exchange transactions through
its Commerce Escrow division. Pacific Premier Bank offers clients
IRA custodial services through its Pacific Premier Trust division,
which has approximately $17 billion of assets under custody and
over 33,000 client accounts comprised of self-directed investors,
financial institutions, capital syndicators, and financial
advisors. Additionally, Pacific Premier Bank provides nationwide
customized banking solutions to Homeowners’ Associations and
Property Management companies. Pacific Premier Bank is an Equal
Housing Lender and Member FDIC. For additional information about
Pacific Premier Bancorp, Inc. and Pacific Premier Bank, visit our
website: www.ppbi.com.
FORWARD-LOOKING STATEMENTS
The statements contained herein that are not historical facts
are forward-looking statements based on management’s current
expectations and beliefs concerning future developments and their
potential effects on the Company including, without limitation,
plans, strategies and goals, and statements about the Company’s
expectations regarding revenue and asset growth, financial
performance and profitability, loan and deposit growth, yields and
returns, loan diversification and credit management, stockholder
value creation, tax rates, liquidity, and the impact of
acquisitions we have made or may make.
Such statements involve inherent risks and uncertainties, many
of which are difficult to predict and are generally beyond the
control of the Company. There can be no assurance that future
developments affecting the Company will be the same as those
anticipated by management. The Company cautions readers that a
number of important factors could cause actual results to differ
materially from those expressed in, or implied or projected by,
such forward-looking statements. These risks and uncertainties
include, but are not limited to, the following: the strength of the
United States economy in general and the strength of the local
economies in which we conduct operations; adverse developments in
the banking industry highlighted by high-profile bank failures and
the potential impact of such developments on customer confidence,
liquidity, and regulatory responses to these developments; the
effects of, and changes in, trade, monetary, and fiscal policies
and laws, including interest rate policies of the Board of
Governors of the Federal Reserve System; interest rate, liquidity,
economic, market, credit, operational, and inflation risks
associated with our business, including the speed and
predictability of changes in these risks; our ability to attract
and retain deposits and access to other sources of liquidity,
particularly in a rising or high interest rate environment, and the
quality and composition of our deposits; business and economic
conditions generally and in the financial services industry,
nationally and within our current and future geographic markets,
including the tight labor market, ineffective management of the
U.S. Federal budget or debt, or turbulence or uncertainty in
domestic or foreign financial markets; the effect of acquisitions
we have made or may make, including, without limitation, the
failure to achieve the expected revenue growth and/or expense
savings from such acquisitions, and/or the failure to effectively
integrate an acquisition target into our operations; the timely
development of competitive new products and services and the
acceptance of these products and services by new and existing
customers; possible impairment charges to goodwill, including any
impairment that may result from increased volatility in our stock
price; the impact of changes in financial services policies, laws,
and regulations, including those concerning taxes, banking,
securities, and insurance, and the application thereof by
regulatory bodies; compliance risks, including the costs of
monitoring, testing, and maintaining compliance with complex laws
and regulations; the effectiveness of our risk management framework
and quantitative models; the effect of changes in accounting
policies and practices or accounting standards, as may be adopted
from time-to-time by bank regulatory agencies, the U.S. Securities
and Exchange Commission (“SEC”), the Public Company Accounting
Oversight Board, the Financial Accounting Standards Board or other
accounting standards setters; possible credit-related impairments
of securities held by us; changes in the level of our nonperforming
assets and charge-offs; the impact of governmental efforts to
restructure the U.S. financial regulatory system; the impact of
recent or future changes in the FDIC insurance assessment rate or
the rules and regulations related to the calculation of the FDIC
insurance assessment amount, including any special assessments;
changes in consumer spending, borrowing, and savings habits; the
effects of concentrations in our loan portfolio, including
commercial real estate and the risks of geographic and industry
concentrations; the possibility that we may reduce or discontinue
the payments of dividends on our common stock; the possibility that
we may discontinue, reduce or otherwise limit the level of
repurchases of our common stock we may make from time to time
pursuant to our stock repurchase program; changes in the financial
performance and/or condition of our borrowers; changes in the
competitive environment among financial and bank holding companies
and other financial service providers; geopolitical conditions,
including acts or threats of terrorism, actions taken by the United
States or other governments in response to acts or threats of
terrorism, and/or military conflicts, including the war between
Russia and Ukraine, Israel and Hamas and overall tension in the
Middle East, and trade tensions, all of which could impact business
and economic conditions in the United States and abroad; public
health crises and pandemics and their effects on the economic and
business environments in which we operate, including on our credit
quality and business operations, as well as the impact on general
economic and financial market conditions; cybersecurity threats and
the cost of defending against them; climate change, including the
enhanced regulatory, compliance, credit, and reputational risks and
costs; natural disasters, earthquakes, fires, and severe weather;
unanticipated regulatory or legal proceedings; and our ability to
manage the risks involved in the foregoing. Additional factors that
could cause actual results to differ materially from those
expressed in the forward-looking statements are discussed in the
Company's 2023 Annual Report on Form 10-K filed with the SEC and
available at the SEC’s Internet site (http://www.sec.gov).
The Company undertakes no obligation to revise or publicly
release any revision or update to these forward-looking statements
to reflect events or circumstances that occur after the date on
which such statements were made.
PACIFIC PREMIER BANCORP, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
FINANCIAL CONDITION
(Unaudited)
March 31,
December 31,
September 30,
June 30,
March 31,
(Dollars in
thousands)
2024
2023
2023
2023
2023
ASSETS
Cash and cash equivalents
$
1,028,818
$
936,473
$
1,400,276
$
1,463,677
$
1,424,896
Interest-bearing time deposits with
financial institutions
995
995
1,242
1,487
1,734
Investment securities held-to-maturity, at
amortized cost, net of allowance for credit losses
1,720,481
1,729,541
1,737,866
1,737,604
1,749,030
Investment securities available-for-sale,
at fair value
1,154,021
1,140,071
1,914,599
2,011,791
2,112,852
FHLB, FRB, and other stock
97,063
99,225
105,505
105,369
105,479
Loans held for sale, at lower of amortized
cost or fair value
—
—
641
2,184
1,247
Loans held for investment
13,012,071
13,289,020
13,270,120
13,610,282
14,171,784
Allowance for credit losses
(192,340
)
(192,471
)
(188,098
)
(192,333
)
(195,388
)
Loans held for investment, net
12,819,731
13,096,549
13,082,022
13,417,949
13,976,396
Accrued interest receivable
67,642
68,516
68,131
70,093
69,660
Other real estate owned
248
248
450
270
5,499
Premises and equipment, net
54,789
56,676
59,396
61,527
63,450
Deferred income taxes, net
111,390
113,580
192,208
184,857
177,778
Bank owned life insurance
474,404
471,178
468,191
465,288
462,732
Intangible assets
40,449
43,285
46,307
49,362
52,417
Goodwill
901,312
901,312
901,312
901,312
901,312
Other assets
341,838
368,996
297,574
275,113
257,082
Total assets
$
18,813,181
$
19,026,645
$
20,275,720
$
20,747,883
$
21,361,564
LIABILITIES
Deposit accounts:
Noninterest-bearing checking
$
4,997,636
$
4,932,817
$
5,782,305
$
5,895,975
$
6,209,104
Interest-bearing:
Checking
2,785,626
2,899,621
2,598,449
2,759,855
2,871,812
Money market/savings
5,037,636
4,868,442
4,873,582
4,801,288
5,128,857
Retail certificates of deposit
1,794,813
1,684,560
1,525,919
1,366,071
1,257,146
Wholesale/brokered certificates of
deposit
572,117
610,186
1,227,192
1,716,686
1,740,891
Total interest-bearing
10,190,192
10,062,809
10,225,142
10,643,900
10,998,706
Total deposits
15,187,828
14,995,626
16,007,447
16,539,875
17,207,810
FHLB advances and other borrowings
200,000
600,000
800,000
800,000
800,000
Subordinated debentures
332,001
331,842
331,682
331,523
331,364
Accrued expenses and other liabilities
190,551
216,596
281,057
227,351
191,229
Total liabilities
15,910,380
16,144,064
17,420,186
17,898,749
18,530,403
STOCKHOLDERS’ EQUITY
Common stock
941
938
937
937
937
Additional paid-in capital
2,378,171
2,377,131
2,371,941
2,366,639
2,361,830
Retained earnings
619,405
604,137
771,285
757,025
731,123
Accumulated other comprehensive loss
(95,716
)
(99,625
)
(288,629
)
(275,467
)
(262,729
)
Total stockholders' equity
2,902,801
2,882,581
2,855,534
2,849,134
2,831,161
Total liabilities and stockholders'
equity
$
18,813,181
$
19,026,645
$
20,275,720
$
20,747,883
$
21,361,564
PACIFIC PREMIER BANCORP, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited)
Three Months Ended
March 31,
December 31,
March 31,
(Dollars in
thousands, except per share data)
2024
2023
2023
INTEREST INCOME
Loans
$
172,975
$
176,773
$
180,958
Investment securities and other
interest-earning assets
40,456
40,419
40,385
Total interest income
213,431
217,192
221,343
INTEREST EXPENSE
Deposits
59,506
60,915
40,234
FHLB advances and other borrowings
4,237
4,927
7,938
Subordinated debentures
4,561
4,561
4,561
Total interest expense
68,304
70,403
52,733
Net interest income before provision for
credit losses
145,127
146,789
168,610
Provision for credit losses
3,852
1,696
3,016
Net interest income after provision for
credit losses
141,275
145,093
165,594
NONINTEREST INCOME
Loan servicing income
529
359
573
Service charges on deposit accounts
2,688
2,648
2,629
Other service fee income
336
322
296
Debit card interchange fee income
765
844
803
Earnings on bank owned life insurance
4,159
3,678
3,374
Net (loss) gain from sales of loans
—
(4
)
29
Net (loss) gain from sales of investment
securities
—
(254,065
)
138
Trust custodial account fees
10,642
9,388
11,025
Escrow and exchange fees
696
1,074
1,058
Other income
5,959
1,562
1,261
Total noninterest income (loss)
25,774
(234,194
)
21,186
NONINTEREST EXPENSE
Compensation and benefits
54,130
51,907
54,293
Premises and occupancy
10,807
11,183
11,742
Data processing
7,511
7,409
7,265
Other real estate owned operations,
net
46
103
108
FDIC insurance premiums
2,629
4,267
2,425
Legal and professional services
4,143
4,663
5,501
Marketing expense
1,558
1,728
1,838
Office expense
1,093
1,367
1,232
Loan expense
770
437
646
Deposit expense
12,665
11,152
8,436
Amortization of intangible assets
2,836
3,022
3,171
Other expense
4,445
5,532
4,695
Total noninterest expense
102,633
102,770
101,352
Net income (loss) before income taxes
64,416
(191,871
)
85,428
Income tax expense (benefit)
17,391
(56,495
)
22,866
Net income (loss)
$
47,025
$
(135,376
)
$
62,562
EARNINGS (LOSS) PER SHARE
Basic
$
0.49
$
(1.44
)
$
0.66
Diluted
$
0.49
$
(1.44
)
$
0.66
WEIGHTED AVERAGE SHARES
OUTSTANDING
Basic
94,350,259
94,233,813
93,857,812
Diluted
94,477,355
94,334,878
94,182,522
SELECTED FINANCIAL DATA
PACIFIC PREMIER BANCORP, INC.
AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCES
AND YIELD DATA
(Unaudited)
Three Months Ended
March 31, 2024
December 31, 2023
March 31, 2023
(Dollars in
thousands)
Average Balance
Interest Income/
Expense
Average Yield/ Cost
Average Balance
Interest Income/
Expense
Average Yield/ Cost
Average Balance
Interest Income/
Expense
Average Yield/ Cost
Assets
Interest-earning assets:
Cash and cash equivalents
$
1,140,909
$
13,638
4.81
%
$
1,281,793
$
15,744
4.87
%
$
1,335,611
$
13,594
4.13
%
Investment securities
2,948,170
26,818
3.64
3,203,608
24,675
3.08
4,165,681
26,791
2.57
Loans receivable, net (1)(2)
13,149,038
172,975
5.29
13,257,767
176,773
5.29
14,394,775
180,958
5.10
Total interest-earning assets
17,238,117
213,431
4.98
17,743,168
217,192
4.86
19,896,067
221,343
4.51
Noninterest-earning assets
1,796,279
1,881,777
1,788,806
Total assets
$
19,034,396
$
19,624,945
$
21,684,873
Liabilities and equity
Interest-bearing deposits:
Interest checking
$
2,838,332
$
9,903
1.40
%
$
3,037,642
$
11,170
1.46
%
$
3,008,712
$
5,842
0.79
%
Money market
4,636,141
23,632
2.05
4,525,403
22,038
1.93
4,992,084
13,053
1.06
Savings
287,735
227
0.32
308,968
190
0.24
453,079
508
0.45
Retail certificates of deposit
1,727,728
19,075
4.44
1,604,507
16,758
4.14
1,206,966
7,775
2.61
Wholesale/brokered certificates of
deposit
568,872
6,669
4.72
918,596
10,759
4.65
1,443,783
13,056
3.67
Total interest-bearing deposits
10,058,808
59,506
2.38
10,395,116
60,915
2.32
11,104,624
40,234
1.47
FHLB advances and other borrowings
518,879
4,237
3.28
610,913
4,927
3.20
987,817
7,938
3.26
Subordinated debentures
331,932
4,561
5.50
331,776
4,561
5.50
331,297
4,561
5.51
Total borrowings
850,811
8,798
4.15
942,689
9,488
4.01
1,319,114
12,499
3.83
Total interest-bearing liabilities
10,909,619
68,304
2.52
11,337,805
70,403
2.46
12,423,738
52,733
1.72
Noninterest-bearing deposits
4,996,939
5,141,585
6,219,818
Other liabilities
231,889
296,604
218,925
Total liabilities
16,138,447
16,775,994
18,862,481
Stockholders' equity
2,895,949
2,848,951
2,822,392
Total liabilities and equity
$
19,034,396
$
19,624,945
$
21,684,873
Net interest income
$
145,127
$
146,789
$
168,610
Net interest margin (3)
3.39
%
3.28
%
3.44
%
Cost of deposits (4)
1.59
1.56
0.94
Cost of funds (5)
1.73
1.69
1.15
Cost of non-maturity deposits (6)
1.06
1.02
0.54
Ratio of interest-earning assets to
interest-bearing liabilities
158.01
156.50
160.15
______________________________
(1)
Average balance includes loans held for
sale and nonperforming loans and is net of deferred loan
origination fees/costs, discounts/premiums, and the basis
adjustment of certain loans included in fair value hedging
relationships.
(2)
Interest income includes net discount
accretion of $2.1 million, $2.6 million, and $2.5 million for the
three months ended March 31, 2024, December 31, 2023, and March 31,
2023, respectively.
(3)
Represents annualized net interest income
divided by average interest-earning assets.
(4)
Represents annualized interest expense on
deposits divided by the sum of average interest-bearing deposits
and noninterest-bearing deposits.
(5)
Represents annualized total interest
expense divided by the sum of average total interest-bearing
liabilities and noninterest-bearing deposits.
(6)
Reconciliations of the non-GAAP measures
are set forth at the end of this press release.
PACIFIC PREMIER BANCORP, INC.
AND SUBSIDIARIES
LOAN PORTFOLIO
COMPOSITION
(Unaudited)
March 31,
December 31,
September 30,
June 30,
March 31,
(Dollars in
thousands)
2024
2023
2023
2023
2023
Investor loans secured by real
estate
CRE non-owner-occupied
$
2,309,252
$
2,421,772
$
2,514,056
$
2,571,246
$
2,590,824
Multifamily
5,558,966
5,645,310
5,719,210
5,788,030
5,955,239
Construction and land
486,734
472,544
444,576
428,287
420,079
SBA secured by real estate (1)
35,206
36,400
37,754
38,876
40,669
Total investor loans secured by real
estate
8,390,158
8,576,026
8,715,596
8,826,439
9,006,811
Business loans secured by real estate
(2)
CRE owner-occupied
2,149,362
2,191,334
2,228,802
2,281,721
2,342,175
Franchise real estate secured
294,938
304,514
313,451
318,539
371,902
SBA secured by real estate (3)
48,426
50,741
53,668
57,084
60,527
Total business loans secured by real
estate
2,492,726
2,546,589
2,595,921
2,657,344
2,774,604
Commercial loans (4)
Commercial and industrial
1,774,487
1,790,608
1,588,771
1,744,763
1,967,128
Franchise non-real estate secured
301,895
319,721
335,053
351,944
388,722
SBA non-real estate secured
10,946
10,926
10,667
9,688
10,437
Total commercial loans
2,087,328
2,121,255
1,934,491
2,106,395
2,366,287
Retail loans
Single family residential (5)
72,353
72,752
70,984
70,993
70,913
Consumer
1,830
1,949
1,958
2,241
3,174
Total retail loans
74,183
74,701
72,942
73,234
74,087
Loans held for investment before basis
adjustment (6)
13,044,395
13,318,571
13,318,950
13,663,412
14,221,789
Basis adjustment associated with fair
value hedge (7)
(32,324
)
(29,551
)
(48,830
)
(53,130
)
(50,005
)
Loans held for investment
13,012,071
13,289,020
13,270,120
13,610,282
14,171,784
Allowance for credit losses for loans held
for investment
(192,340
)
(192,471
)
(188,098
)
(192,333
)
(195,388
)
Loans held for investment, net
$
12,819,731
$
13,096,549
$
13,082,022
$
13,417,949
$
13,976,396
Loans held for sale, at lower of cost or
fair value
$
—
$
—
$
641
$
2,184
$
1,247
______________________________
(1)
SBA loans that are collateralized by
hotel/motel real property.
(2)
Loans to businesses that are
collateralized by real estate where the operating cash flow of the
business is the primary source of repayment.
(3)
SBA loans that are collateralized by real
property other than hotel/motel real property.
(4)
Loans to businesses where the operating
cash flow of the business is the primary source of repayment.
(5)
Single family residential includes home
equity lines of credit, as well as second trust deeds.
(6)
Includes net deferred origination costs
(fees) of $797,000, $(74,000), $451,000, $142,000, and $(745,000),
and unaccreted fair value net purchase discounts of $41.2 million,
$43.3 million, $46.2 million, $48.4 million, and $52.2 million as
of March 31, 2024, December 31, 2023, September 30, 2023, June 30,
2023, and March 31, 2023, respectively.
(7)
Represents the basis adjustment associated
with the application of hedge accounting on certain loans.
PACIFIC PREMIER BANCORP, INC.
AND SUBSIDIARIES
ASSET QUALITY
INFORMATION
(Unaudited)
March 31,
December 31,
September 30,
June 30,
March 31,
(Dollars in
thousands)
2024
2023
2023
2023
2023
Asset quality
Nonperforming loans
$
63,806
$
24,817
$
25,458
$
17,151
$
24,872
Other real estate owned
248
248
450
270
5,499
Nonperforming assets
$
64,054
$
25,065
$
25,908
$
17,421
$
30,371
Total classified assets (1)
$
204,937
$
142,210
$
149,708
$
120,216
$
166,576
Allowance for credit losses
192,340
192,471
188,098
192,333
195,388
Allowance for credit losses as a percent
of total nonperforming loans
301
%
776
%
739
%
1,121
%
786
%
Nonperforming loans as a percent of loans
held for investment
0.49
0.19
0.19
0.13
0.18
Nonperforming assets as a percent of total
assets
0.34
0.13
0.13
0.08
0.14
Classified loans to total loans held for
investment
1.57
1.07
1.12
0.88
1.14
Classified assets to total assets
1.09
0.75
0.74
0.58
0.78
Net loan charge-offs for the quarter
ended
$
6,419
$
3,902
$
6,752
$
3,665
$
3,284
Net loan charge-offs for the quarter to
average total loans
0.05
%
0.03
%
0.05
%
0.03
%
0.02
%
Allowance for credit losses to loans held
for investment (2)
1.48
1.45
1.42
1.41
1.38
Delinquent loans (3)
30 - 59 days
$
1,983
$
2,484
$
2,967
$
649
$
761
60 - 89 days
974
1,294
475
31
1,198
90+ days
9,221
6,276
7,484
30,271
18,884
Total delinquency
$
12,178
$
10,054
$
10,926
$
30,951
$
20,843
Delinquency as a percent of loans held for
investment
0.09
%
0.08
%
0.08
%
0.23
%
0.15
%
______________________________
(1)
Includes substandard and doubtful loans,
and other real estate owned.
(2)
At March 31, 2024, 25% of loans held for
investment include a fair value net discount of $41.2 million, or
0.32% of loans held for investment. At December 31, 2023, 24% of
loans held for investment include a fair value net discount of
$43.3 million, or 0.33% of loans held for investment. At September
30, 2023, 24% of loans held for investment include a fair value net
discount of $46.2 million, or 0.35% of loans held for investment.
At June 30, 2023, 25% of loans held for investment include a fair
value net discount of $48.4 million, or 0.35% of loans held for
investment. At March 31, 2023, 26% of loans held for investment
include a fair value net discount of $52.2 million, or 0.37% of
loans held for investment.
(3)
Nonaccrual loans are included in this
aging analysis based on the loan's past due status.
PACIFIC PREMIER BANCORP, INC.
AND SUBSIDIARIES
NONACCRUAL LOANS (1)
(Unaudited)
(Dollars in
thousands)
Collateral Dependent
Loans
ACL
Non- Collateral Dependent
Loans
ACL
Total Nonaccrual Loans
Nonaccrual Loans With No
ACL
March 31, 2024
Investor loans secured by real
estate
CRE non-owner-occupied
$
24,008
$
2,657
$
—
$
—
$
24,008
$
17,499
SBA secured by real estate (2)
1,258
—
—
—
1,258
1,258
Total investor loans secured by real
estate
25,266
2,657
—
—
25,266
18,757
Business loans secured by real estate
(3)
CRE owner-occupied
12,602
—
—
—
12,602
12,602
Franchise real estate secured
—
—
292
43
292
—
Total business loans secured by real
estate
12,602
—
292
43
12,894
12,602
Commercial loans (4)
Commercial and industrial
1,380
—
22,161
1,521
23,541
13,541
Franchise non-real estate secured
—
—
1,559
231
1,559
—
SBA not secured by real estate
546
—
—
—
546
546
Total commercial loans
1,926
—
23,720
1,752
25,646
14,087
Total nonaccrual loans
$
39,794
$
2,657
$
24,012
$
1,795
$
63,806
$
45,446
______________________________
(1)
The ACL for nonaccrual loans is determined
based on a discounted cash flow methodology unless the loan is
considered collateral dependent. The ACL for collateral dependent
loans is determined based on the estimated fair value of the
underlying collateral.
(2)
SBA loans that are collateralized by
hotel/motel real property.
(3)
Loans to businesses that are
collateralized by real estate where the operating cash flow of the
business is the primary source of repayment.
(4)
Loans to businesses where the operating
cash flow of the business is the primary source of repayment.
PACIFIC PREMIER BANCORP, INC.
AND SUBSIDIARIES
PAST DUE STATUS
(Unaudited)
Days Past Due (7)
(Dollars in
thousands)
Current
30-59
60-89
90+
Total
March 31, 2024
Investor loans secured by real
estate
CRE non-owner-occupied
$
2,308,852
$
—
$
—
$
400
$
2,309,252
Multifamily
5,558,966
—
—
—
5,558,966
Construction and land
486,734
—
—
—
486,734
SBA secured by real estate (1)
34,409
—
381
416
35,206
Total investor loans secured by real
estate
8,388,961
—
381
816
8,390,158
Business loans secured by real
estate (2)
CRE owner-occupied
2,144,734
—
—
4,628
2,149,362
Franchise real estate secured
294,646
—
—
292
294,938
SBA secured by real estate (3)
48,426
—
—
—
48,426
Total business loans secured by real
estate
2,487,806
—
—
4,920
2,492,726
Commercial loans (4)
Commercial and industrial
1,770,803
1,729
575
1,380
1,774,487
Franchise non-real estate secured
300,336
—
—
1,559
301,895
SBA not secured by real estate
10,146
254
—
546
10,946
Total commercial loans
2,081,285
1,983
575
3,485
2,087,328
Retail loans
Single family residential (5)
72,335
—
18
—
72,353
Consumer loans
1,830
—
—
—
1,830
Total retail loans
74,165
—
18
—
74,183
Loans held for investment before basis
adjustment (6)
$
13,032,217
$
1,983
$
974
$
9,221
$
13,044,395
______________________________
(1)
SBA loans that are collateralized by
hotel/motel real property.
(2)
Loans to businesses that are
collateralized by real estate where the operating cash flow of the
business is the primary source of repayment.
(3)
SBA loans that are collateralized by real
property other than hotel/motel real property.
(4)
Loans to businesses where the operating
cash flow of the business is the primary source of repayment.
(5)
Single family residential includes home
equity lines of credit, as well as second trust deeds.
(6)
Excludes the basis adjustment of $32.3
million to the carrying amount of certain loans included in fair
value hedging relationships.
(7)
Nonaccrual loans are included in this
aging analysis based on the loan's past due status.
PACIFIC PREMIER BANCORP, INC.
AND SUBSIDIARIES
CREDIT RISK GRADES
(Unaudited)
(Dollars in
thousands)
Pass
Special Mention
Substandard
Doubtful
Total Gross
Loans
March 31, 2024
Investor loans secured by real
estate
CRE non-owner-occupied
$
2,271,367
$
6,699
$
31,186
$
—
$
2,309,252
Multifamily
5,511,977
29,879
17,110
—
5,558,966
Construction and land
486,303
431
—
—
486,734
SBA secured by real estate (1)
27,485
—
7,721
—
35,206
Total investor loans secured by real
estate
8,297,132
37,009
56,017
—
8,390,158
Business loans secured by real
estate (2)
CRE owner-occupied
2,056,124
49,227
44,011
—
2,149,362
Franchise real estate secured
287,593
1,597
5,748
—
294,938
SBA secured by real estate (3)
43,907
82
4,437
—
48,426
Total business loans secured by real
estate
2,387,624
50,906
54,196
—
2,492,726
Commercial loans (4)
Commercial and industrial
1,620,751
75,752
73,875
4,109
1,774,487
Franchise non-real estate secured
285,554
648
15,693
—
301,895
SBA not secured by real estate
10,147
—
799
—
10,946
Total commercial loans
1,916,452
76,400
90,367
4,109
2,087,328
Retail loans
Single family residential (5)
72,353
—
—
—
72,353
Consumer loans
1,830
—
—
—
1,830
Total retail loans
74,183
—
—
—
74,183
Loans held for investment before basis
adjustment (6)
$
12,675,391
$
164,315
$
200,580
$
4,109
$
13,044,395
______________________________
(1)
SBA loans that are collateralized by
hotel/motel real property.
(2)
Loans to businesses that are
collateralized by real estate where the operating cash flow of the
business is the primary source of repayment.
(3)
SBA loans that are collateralized by real
property other than hotel/motel real property.
(4)
Loans to businesses where the operating
cash flow of the business is the primary source of repayment.
(5)
Single family residential includes home
equity lines of credit, as well as second trust deeds.
(6)
Excludes the basis adjustment of $32.3
million to the carrying amount of certain loans included in fair
value hedging relationships.
GAAP TO NON-GAAP RECONCILIATIONS
PACIFIC PREMIER BANCORP, INC.
AND SUBSIDIARIES
(Unaudited)
The Company uses certain non-GAAP
financial measures to provide meaningful supplemental information
regarding the Company’s operational performance and to enhance
investors’ overall understanding of such financial performance.
However, these non-GAAP financial measures are supplemental and are
not a substitute for an analysis based on GAAP measures. As other
companies may use different calculations for these adjusted
measures, this presentation may not be comparable to other
similarly titled adjusted measures reported by other companies.
For periods presented below, return on
average assets excluding net loss from investment securities
repositioning and FDIC special assessment is a non-GAAP financial
measure derived from GAAP based amounts. We calculate this figure
by excluding the net loss from investment securities repositioning
during the fourth quarter of 2023, the FDIC special assessment, and
the related tax impact from net income. Management believes that
the exclusion of such nonrecurring items from this financial
measure provides useful information to gain an understanding of the
operating results of our core business and a better comparison of
financial performance.
Three Months Ended
March 31,
December 31,
March 31,
(Dollars in
thousands)
2024
2023
2023
Net income (loss)
$
47,025
$
(135,376
)
$
62,562
Less: net loss from investment securities
repositioning
—
(254,065
)
—
Add: FDIC special assessment
523
2,080
—
Less: tax adjustment (1)
148
72,387
—
Adjusted net income for average assets
$
47,400
$
48,382
$
62,562
Average assets
$
19,034,396
$
19,624,945
$
21,684,873
ROAA (annualized)
0.99
%
(2.76
)%
1.15
%
Adjusted ROAA (annualized)
1.00
%
0.99
%
1.15
%
______________________________
(1)
Adjusted by statutory tax rate
For periods presented below, return on
average tangible common equity is a non-GAAP financial measure
derived from GAAP-based amounts. We calculate this figure by
excluding amortization of intangible assets expense from net income
and excluding the average intangible assets and average goodwill
from the average stockholders' equity during the periods indicated.
Management believes that the exclusion of such items from this
financial measure provides useful information to gain an
understanding of the operating results of our core business. The
adjusted net income, adjusted return on average equity, and
adjusted return on average tangible common equity further exclude
the nonrecurring items to provide a better comparison to the
financial results of prior periods.
Three Months Ended
March 31,
December 31,
March 31,
(Dollars in
thousands)
2024
2023
2023
Net income (loss)
$
47,025
$
(135,376
)
$
62,562
Plus: amortization of intangible assets
expense
2,836
3,022
3,171
Less: tax adjustment (1)
801
854
901
Net income (loss) for average tangible
common equity
$
49,060
$
(133,208
)
$
64,832
Less: net loss from investment securities
repositioning
—
(254,065
)
—
Add: FDIC special assessment
523
2,080
—
Less: tax adjustment (1)
148
72,387
—
Adjusted net income for average tangible
common equity
$
49,435
$
50,550
$
64,832
Average stockholders' equity
$
2,895,949
$
2,848,951
$
2,822,392
Less: average intangible assets
42,134
45,050
54,310
Less: average goodwill
901,312
901,312
901,312
Average tangible common equity
1,952,503
1,902,589
1,866,770
Add: average after-tax realized loss from
investment securities repositioning
—
(94,887
)
—
Adjusted average tangible common
equity
$
1,952,503
$
1,807,702
$
1,866,770
ROAE (annualized)
6.50
%
(19.01
)%
8.87
%
Adjusted ROAE (annualized)
6.55
%
7.03
%
8.87
%
ROATCE (annualized)
10.05
%
(28.01
)%
13.89
%
Adjusted ROATCE (annualized)
10.13
%
11.19
%
13.89
%
_____________________________________
(1)
Adjusted by statutory tax rate.
The adjusted basic earnings per common
share and adjusted diluted earnings per common share are non-GAAP
financial measures derived from GAAP based amounts. We calculate
the adjusted basic earnings per common share by dividing net income
allocable to common shareholders, excluding the net loss from
investment securities repositioning during the fourth quarter of
2023, the FDIC special assessment, and the related tax impact, by
the weighted average number of common shares outstanding for the
reporting period, excluding outstanding participating securities.
The adjusted diluted earnings per common share is computed by
dividing net income allocable to common shareholders, excluding the
net loss from investment securities repositioning, FDIC special
assessment, and the related tax impact, by the weighted average
number of diluted common shares outstanding over the reporting
period, adjusted to include the effect of potentially dilutive
common shares based on adjusted net income, but excludes awards
considered participating securities. The computation of diluted
earnings per common share excludes the impact of the assumed
exercise or issuance of securities that would have an anti-dilutive
effect. Management believes that the exclusion of such items from
this financial measure provides useful information to gain an
understanding of the operating results of our core business and a
better comparison of financial performance.
Three Months Ended
March 31,
December 31,
March 31,
(Dollars in
thousands, except per share data)
2024
2023
2023
Basic
Net income (loss)
$
47,025
$
(135,376
)
$
62,562
Less: dividends and undistributed earnings
allocated to participating securities
(779
)
(560
)
(823
)
Net income (loss) allocated to common
stockholders
46,246
(135,936
)
61,739
Less: net loss from investment securities
repositioning
—
(254,065
)
—
Add: FDIC special assessment
523
2,080
—
Less: tax adjustment (1)
148
72,387
—
Adjusted net income allocated to common
stockholders
$
46,621
$
47,822
$
61,739
Weighted average common shares
outstanding
94,350,259
94,233,813
93,857,812
Basic earnings (loss) per common share
$
0.49
$
(1.44
)
$
0.66
Adjusted basic earnings per common
share
$
0.49
$
0.51
$
0.66
Diluted
Net income (loss) allocated to common
stockholders
$
46,246
$
(135,936
)
$
61,739
Less: net loss from investment securities
repositioning
—
(254,065
)
—
Add: FDIC special assessment
523
2,080
—
Less: tax adjustment (1)
148
72,387
—
Adjusted net income allocated to common
stockholders
$
46,621
$
47,822
$
61,739
Weighted average common shares
outstanding
94,350,259
94,233,813
93,857,812
Dilutive effect of share-based
compensation
127,096
—
324,710
Weighted average diluted common shares
94,477,355
94,233,813
94,182,522
Dilutive effect of share-based
compensation
—
101,065
—
Adjusted weighted average diluted common
shares
94,477,355
94,334,878
94,182,522
Diluted earnings (loss) per common
share
$
0.49
$
(1.44
)
$
0.66
Adjusted diluted earnings per common
share
$
0.49
$
0.51
$
0.66
______________________________
(1)
Adjusted by statutory tax rate
Pre-provision net revenue is a non-GAAP
financial measure derived from GAAP-based amounts. We calculate the
pre-provision net revenue by excluding income tax and provision for
credit losses from net income. The adjusted pre-provision net
income further excludes the net loss from investment securities
repositioning during the fourth quarter of 2023 and the FDIC
special assessment to provide a better comparison of financial
performance. Management believes that the exclusion of such items
from this financial measure provides useful information to gain an
understanding of the operating results of our core business and a
better comparison to the financial results of prior periods.
Three Months Ended
March 31,
December 31,
March 31,
(Dollars in
thousands)
2024
2023
2023
Interest income
$
213,431
$
217,192
$
221,343
Interest expense
68,304
70,403
52,733
Net interest income
145,127
146,789
168,610
Noninterest income (loss)
25,774
(234,194
)
21,186
Revenue (loss)
170,901
(87,405
)
189,796
Noninterest expense
102,633
102,770
101,352
Pre-provision net revenue (loss)
68,268
(190,175
)
88,444
Less: net loss from investment securities
repositioning
—
(254,065
)
—
Add: FDIC special assessment
523
2,080
—
Adjusted pre-provision net revenue
$
68,791
$
65,970
$
88,444
Pre-provision net revenue (loss)
(annualized)
$
273,072
$
(760,700
)
$
353,776
Adjusted pre-provision net revenue
(annualized)
$
275,164
$
263,880
$
353,776
Average assets
$
19,034,396
$
19,624,945
$
21,684,873
Pre-provision net revenue (loss) to
average assets
0.36
%
(0.97
)%
0.41
%
Pre-provision net revenue (loss) to
average assets (annualized)
1.43
%
(3.88
)%
1.63
%
Adjusted pre-provision net revenue on
average assets
0.36
%
0.34
%
0.41
%
Adjusted pre-provision net revenue on
average assets (annualized)
1.45
%
1.34
%
1.63
%
Efficiency ratio is a non-GAAP financial
measure derived from GAAP-based amounts. This figure represents the
ratio of noninterest expense, less amortization of intangible
assets and other real estate owned operations, where applicable, to
the sum of net interest income before provision for credit losses
and total noninterest income less (loss) gain from investment
securities, (loss) gain from other real estate owned, and gain from
debt extinguishment. The adjusted efficiency ratio further excludes
the FDIC special assessment to provide a better comparison to the
financial results of prior periods. Management believes that the
exclusion of such items from this financial measure provides useful
information to gain an understanding of the operating results of
our core business.
Three Months Ended
March 31,
December 31,
March 31,
(Dollars in
thousands)
2024
2023
2023
Total noninterest expense
$
102,633
$
102,770
$
101,352
Less: amortization of intangible
assets
2,836
3,022
3,171
Less: other real estate owned operations,
net
46
103
108
Adjusted noninterest expense
99,751
99,645
98,073
Less: FDIC special assessment
523
2,080
—
Adjusted noninterest expense excluding
FDIC special assessment
$
99,228
$
97,565
$
98,073
Net interest income before provision for
credit losses
$
145,127
$
146,789
$
168,610
Add: total noninterest income (loss)
25,774
(234,194
)
21,186
Less: net (loss) gain from sales of
investment securities
—
(254,065
)
138
Less: net loss from other real estate
owned
—
(24
)
—
Less: net gain from debt
extinguishment
5,067
793
—
Adjusted revenue
$
165,834
$
165,891
$
189,658
Efficiency ratio
60.2
%
60.1
%
51.7
%
Adjusted efficiency ratio excluding FDIC
special assessment
59.8
%
58.8
%
51.7
%
Tangible book value per share and tangible
common equity to tangible assets (the “tangible common equity
ratio”) are non-GAAP financial measures derived from GAAP-based
amounts. We calculate tangible book value per share by dividing
tangible common equity by common shares outstanding, as compared to
book value per share, which we calculate by dividing common
stockholders' equity by shares outstanding. We calculate the
tangible common equity ratio by excluding the balance of intangible
assets from common stockholders' equity and dividing by tangible
assets. We believe that this information is consistent with the
treatment by bank regulatory agencies, which excludes intangible
assets from the calculation of risk-based capital ratios.
Accordingly, we believe that these non-GAAP financial measures
provide information that is important to investors and that is
useful in understanding our capital position and ratios.
March 31,
December 31,
September 30,
June 30,
March 31,
(Dollars in
thousands, except per share data)
2024
2023
2023
2023
2023
Total stockholders' equity
$
2,902,801
$
2,882,581
$
2,855,534
$
2,849,134
$
2,831,161
Less: intangible assets
941,761
944,597
947,619
950,674
953,729
Tangible common equity
$
1,961,040
$
1,937,984
$
1,907,915
$
1,898,460
$
1,877,432
Total assets
$
18,813,181
$
19,026,645
$
20,275,720
$
20,747,883
$
21,361,564
Less: intangible assets
941,761
944,597
947,619
950,674
953,729
Tangible assets
$
17,871,420
$
18,082,048
$
19,328,101
$
19,797,209
$
20,407,835
Tangible common equity ratio
10.97
%
10.72
%
9.87
%
9.59
%
9.20
%
Common shares issued and outstanding
96,459,966
95,860,092
95,900,847
95,906,217
95,714,777
Book value per share
$
30.09
$
30.07
$
29.78
$
29.71
$
29.58
Less: intangible book value per share
9.76
9.85
9.88
9.91
9.96
Tangible book value per share
$
20.33
$
20.22
$
19.89
$
19.79
$
19.61
Cost of non-maturity deposits is a
non-GAAP financial measure derived from GAAP-based amounts. Cost of
non-maturity deposits is calculated as the ratio of non-maturity
deposit interest expense to average non-maturity deposits. We
calculate non-maturity deposit interest expense by excluding
interest expense for all certificates of deposit from total deposit
expense, and we calculate average non-maturity deposits by
excluding all certificates of deposit from total deposits.
Management believes cost of non-maturity deposits is a useful
measure to assess the Company's deposit base, including its
potential volatility.
Three Months Ended
March 31,
December 31,
March 31,
(Dollars in
thousands)
2024
2023
2023
Total deposits interest expense
$
59,506
$
60,915
$
40,234
Less: certificates of deposit interest
expense
19,075
16,758
7,775
Less: brokered certificates of deposit
interest expense
6,669
10,759
13,056
Non-maturity deposit expense
$
33,762
$
33,398
$
19,403
Total average deposits
$
15,055,747
$
15,536,701
$
17,324,442
Less: average certificates of deposit
1,727,728
1,604,507
1,206,966
Less: average brokered certificates of
deposit
568,872
918,596
1,443,783
Average non-maturity deposits
$
12,759,147
$
13,013,598
$
14,673,693
Cost of non-maturity deposits
1.06
%
1.02
%
0.54
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240424584188/en/
Pacific Premier Bancorp, Inc.
Steven R. Gardner Chairman, Chief Executive Officer, and
President (949) 864-8000
Ronald J. Nicolas, Jr. Senior Executive Vice President and Chief
Financial Officer (949) 864-8000
Matthew J. Lazzaro Senior Vice President and Director of
Investor Relations (949) 243-1082
Pacific Premier Bancorp (NASDAQ:PPBI)
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