Pacific Premier Bancorp, Inc. (NASDAQ: PPBI) (the “Company”),
the holding company of Pacific Premier Bank (the “Bank”), reported
adjusted earnings for the second quarter of 2013 of $3.0 million,
or $0.19 per share on a diluted basis, before non-recurring
merger-related expenses, compared with adjusted earnings for the
first quarter of 2013 of $3.1 million, or $0.20 per share on a
diluted basis, before non-recurring merger-related expenses. For
the three months ended June 30, 2013, the Company’s adjusted return
on average assets was 0.86% and adjusted return on average equity
was 7.59%, compared with an adjusted return on average assets of
1.05% and an adjusted return on average equity of 8.78% for the
three months ended March 31, 2013.
Taking into account the one-time merger-related expenses
incurred in the second quarter in connection with the acquisition
of San Diego Trust Bank (“San Diego Trust”) and in the first
quarter in connection with the acquisition of First Associations
Bank (“First Associations”) of $5.0 million and $1.7 million,
respectively, the Company recorded a net loss of $249,000, or $0.02
per share on a diluted basis, for the second quarter of 2013,
compared to net income of $2.0 million, or $0.13 per share on a
diluted basis, for the first quarter of 2013.
Steven R. Gardner, President and Chief Executive Officer of the
Company, commented on the results, “We saw a significant
improvement in business development activity in the second quarter,
as our loan production increased by 64% to $147 million. Our loan
production was broadly diversified, with strong growth coming in
owner-occupied commercial real estate, C&I and investor owned
commercial real estate loans. The growth in these areas helped to
offset a decline we saw in warehouse lending due to the impact of
higher mortgage rates.
“We are beginning to gain traction in the businesses where we
have recently added additional talent, including SBA, HOA and
construction lending, which complements our strong C&I and CRE
platforms and improves our ability to generate quality assets. Our
loan pipeline continues to be very healthy at $205 million as of
July 22, 2013, which should result in strong loan growth in the
second half of the year. Additionally, the former customers of San
Diego Trust Bank have been very receptive to the acquisition thus
far and we anticipate that our expanded product offerings will
allow us to gain substantive market share throughout the San Diego
market.”
“We have completed the integration and conversion of First
Associations Bank’s former customer accounts and anticipate the
conversion of San Diego Trust Bank systems to occur early in the
fourth quarter. We are excited about the prospects for our
franchise as these two acquisitions create a strong platform for
profitable growth in the future and have markedly improved our
deposit base which positions us well for a rising interest rate
environment. We have realized a significant amount of excess
liquidity by adding the attractive deposit bases of these two
institutions, which has had the immediate effect of compressing our
net interest margin. As we redeploy this liquidity into higher
yielding assets and allow higher cost time deposits to runoff, we
expect to see a steady improvement in our net interest margin and a
higher level of profitability in the future,” said Mr. Gardner.
Net Interest Income and Net Interest Margin
Net interest income totaled $13.6 million in the second quarter
of 2013, up $690,000 or 5.3%, compared to the first quarter of
2013. The increase in net interest income reflected higher average
interest-earning assets of $228.2 million, partially offset by a
decrease in net interest margin. The increase in average
interest-earning assets during the second quarter of 2013 was
primarily from a $163.0 million increase in securities, a $35.9
million increase in loans, and a $29.3 million increase in cash and
cash equivalents.
The net interest margin for the second quarter of 2013 was
4.01%, compared with 4.62% in the first quarter of 2013. The
decrease in net interest margin is primarily attributable to a
decrease in yield on average interest-earning assets of 69 basis
points, primarily from a higher mix of lower yielding investment
securities, which were acquired in our acquisition of First
Associations that closed in the first quarter of 2013 and a
decrease in our loan portfolio yield. The loan portfolio yield for
the second quarter was 5.69%, 16 basis points lower than the first
quarter and reflected lower rates on loan originations. Partially
offsetting this decrease was lower deposit costs of 8 basis points
resulting from an improved mix of lower cost deposits associated
with the First Associations and San Diego Trust acquisitions.
Provision for Loan Losses
We recorded a $322,000 provision for loan losses during the
second quarter of 2013, compared with $296,000 provision for loan
losses for the first quarter of 2013. Stable credit quality metrics
and the recent charge-off history within our loan portfolio were
significant factors in estimating the adequacy of our allowance for
loan losses. Net loan charge-offs amounted to $322,000 in the
second quarter of 2013, up $26,000 from $296,000 experienced during
the first quarter of 2013.
Noninterest income
Noninterest income for the second quarter of 2013 amounted to
$2.4 million, up $707,000 or 41.0%, compared to the first quarter
of 2013. The increase was primarily attributable to the sale of
$101.7 million in securities primarily acquired from First
Associations for a gain of $1.1 million in the current quarter, as
there were no sales of securities in the prior quarter, and other
income of $106,000, partially offset by a decrease in gain on sale
of loans of $501,000.
Noninterest Expense
Noninterest expense totaled $15.9 million for the second quarter
of 2013, up $4.7 million or 41.8%, compared to the first quarter of
2013. The increase primarily related to higher costs in the second
quarter of 2013 when compared to the first quarter of 2013
associated with the following expense categories:
- One-time merger related expenses
increased by $3.2 million;
- Compensation and benefits costs
increased by $590,000, primarily due to the increase in employees
for a full quarter from the First Associations acquisition and new
hires in the lending and credit areas to increase our production of
commercial and industrial (“C&I”) loans, commercial real estate
(“CRE”) loans, Small Business Administration (“SBA”) loans,
homeowner association (“HOA”) loans, and construction loans;
- Other real estate owned operations
increased by $537,000.
These higher costs were partially offset by a decline of
$346,000 in legal, audit and professional fees.
Income Tax
Operating results during the second quarter of 2013 included
$955,000 of merger costs that were treated as non-deductible for
tax purposes. These expenses were largely the cause for a negative
effective tax rate of 57.6% for the second quarter of 2013,
compared to an effective tax rate of 37.4% in the first quarter of
2013. The merger costs also primarily impacted the difference
between the effective tax rate for the first half of 2013 at 42.4%,
compared to 39.0% for the same comparable period of 2012.
Assets and Liabilities
At June 30, 2013, assets totaled $1.6 billion, up $151.8 million
or 10.8% from March 31, 2013 and up $384.7 million or 32.8% from
December 31, 2012. The increase in assets since year-end 2012 was
primarily related to the acquisitions of First Associations, which
added assets at the acquisition date of $394.1 million, partially
offset by $78.5 million of First Associations deposits held by the
Bank prior to the acquisition and San Diego Trust, which added
assets at the acquisition date of $201.1 million. Partially
offsetting these acquisition increases was a decrease of $82.3
million in deposits and to pay down of $67.4 million of Federal
Home Loan Bank (“FHLB”) borrowings. The increase in assets from
March 31, 2013 was primarily related to the acquisition of San
Diego Trust, which included at the acquisition date $124.8 million
in securities, $42.4 million in loans, $14.1 million in cash, $6.4
million in goodwill, $5.8 million in bank owned life insurance and
$7.6 million in other assets.
Investment securities available for sale totaled $313.0 million
at June 30, 2013, up $11.9 million or 3.9% from March 31, 2013, and
up $229.0 million or 272.4% from December 31, 2012. The increase in
securities since year-end 2012 was primarily due to the First
Associations acquisition in March, which added $222.4 million at
the acquisition date and the San Diego Trust acquisition in June,
which added $124.8 million at the acquisition date, partially
offset by the sale of $101.7 million of securities in the second
quarter of 2013, and $16.6 million in principal pay downs. The
investment activity in the second quarter of 2013 included the
acquisition of San Diego Trust and sales of securities described
above, and principal payments of $10.8 million.
Net loans held for investment totaled $1.0 billion at June 30,
2013, an increase of $113.6 million or 12.2% from March 31, 2013
and an increase of $73.2 million or 7.5% from December 31, 2012.
The increase in loans from December 31, 2012 was primarily related
to an increase in business loan balances of $20.2 million and real
estate loan balances of $49.7 million. The increase in loans from
the end of the first quarter was primarily related to an increase
in loan balances of commercial non-owner occupied of $39.8 million,
multi-family of $33.7 million, commercial owner occupied of $35.2
million and C&I of $5.6 million.
During the second quarter of 2013, commitments on our warehouse
repurchase facility credits increased $3.4 million to total $317.3
million with our end of period utilization rates for these loans
dropping from 44.3% at March 31, 2013 to 42.7% at June 30, 2013.
Our average daily outstanding balance for these warehouse
facilities decreased $19.6 million to $125.7 million when comparing
the second quarter with the first quarter of 2013.
Loan activity during the second quarter of 2013 included loan
originations of $123.8 million, loans acquired from San Diego Trust
of $43.0 million and loan purchases of $23.2 million, partially
offset by an increase in undisbursed loan funds of $39.7 million,
loan repayments of $33.4 million and loan sales of $2.2 million. At
June 30, 2013, our loan to deposit ratio was 80.6%, up from 79.7%
at March 31, 2013, but down from 109.0% at December 31, 2012.
Deposits totaled $1.3 billion at June 30, 2013, up $128.5
million or 10.8% from March 31, 2013 and up $409.4 million or 45.3%
from December 31, 2012. The increase over both prior periods was
primarily related to our acquisition activity. In the first quarter
of 2013, the First Associations acquisition added deposits of
$356.8 million at a cost of 21 basis points at the closing of the
acquisition, partially offset by $78.5 million of First
Associations deposits held by the Bank prior to acquisition. In the
second quarter of 2013, the San Diego Trust acquisition added
deposits of $183.9 million at a cost of 23 basis points at closing
of the acquisition. Excluding the deposit acquisition increases and
$49.0 million of First Association’s deposits held at December 31,
2012, we had an adjusted net decrease in deposits of $55.4 million
in the second quarter of 2013 and $82.3 million in the first half
of 2013. The net decrease in deposits for both the current quarter
and the current year-to-date period primarily resulted from
lowering our pricing on certificates of deposits, which resulted in
a desired runoff upon maturity.
Within particular deposit categories during the second quarter
of 2013, the Company had increases in interest-bearing transaction
accounts of $112.1 million and noninterest-bearing accounts of
$28.5 million, partially offset by a decrease in retail
certificates of deposit of $13.0 million. These deposit changes
have increased the mix of our transaction accounts to 74.3% at June
30, 2013, up from 60.1% at year-end 2012. The total end of period
cost of deposits at both June 30, 2013 was 0.35%, down from 0.37%
at March 31, 2013 and 0.51% at December 31, 2012.
The Company expects to see improvement in deposit costs as its
higher cost certificates of deposit mature and either reprice lower
or leave the Bank. At June 30, 2013, we had certificates of deposit
maturing in the third quarter of $90.6 million at a weighted
average rate of 0.89% and in the fourth quarter of $128.1 million
at a weighted average rate of 0.85%.
At June 30, 2013, total borrowings amounted to $58.4 million, up
$3.9 million or 7.1% from March 31, 2013, but down $67.4 million or
53.6% from December 31, 2012. The decrease since year-end 2012 was
primarily related to the reduction of FHLB overnight advances
previously taken out to fund loans, partially offset by $19.6
million in repurchase agreement debt. The increase from the prior
quarter was wholly related to the repurchase agreement debt. Total
borrowings at June 30, 2013 represented 3.7% of total assets and
had an end of period weighted average cost of 2.13%, compared with
3.9% of total assets at a weighted average cost of 2.29% at March
31, 2013, and 10.7% of total assets at a weighted average cost of
1.19% at December 31, 2012.
Asset Quality
At June 30, 2013, nonperforming assets totaled $3.2 million or
0.21% of total assets, down from $4.7 million or 0.33% of total
assets at March 31, 2013. During the second quarter of 2013,
nonperforming loans decreased $1.1 million to total $2.0 million
and other real estate owned decreased $375,000 to total $1.2
million.
Our allowance for loan losses at June 30, 2013 was $8.0 million,
unchanged from March 31, 2013. The allowance for loan losses as a
percent of nonaccrual loans was 393.4% at June 30, 2013, up from
257.7% at March 31, 2013. At June 30, 2013, the ratio of allowance
for loan losses to total gross loans was 0.75%, down from 0.85% at
March 31, 2013.
Capital Ratios
At June 30, 2013, our ratio of tangible common equity to total
assets was 9.36%, with a tangible book value of $8.62 per share and
a book value per share of $10.15.
At June 30, 2013, the Bank exceeded all regulatory capital
requirements with a ratio for tier 1 leverage capital of 10.97%,
tier 1 risked-based capital of 13.34% and total risk-based capital
of 14.07%. These capital ratios exceeded the “well capitalized”
standards defined by the federal banking regulators of 5.00% for
tier 1 leverage capital, 6.00% for tier 1 risked-based capital and
10.00%, for total risk-based capital. At March 31, 2013, the
Company had a ratio for tier 1 leverage capital of 11.15%, tier 1
risked-based capital of 13.54% and total risk-based capital of
14.27%.
Conference Call and Webcast
The Company will host a conference call at 9:00 a.m. PT / 12:00
p.m. ET on July 23, 2013 to discuss its financial results. Analysts
and investors may participate in the question-and-answer session.
The conference call will be webcast live on the Investor Relations
section of the Company’s website www.ppbi.com and 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 (888) 549-7750, conference ID 4630165.
Additionally a telephone replay will be made available through July
30, 2013 at (800) 406-7325, conference ID 4630165.
The Company owns all of the capital stock of the Bank. The Bank
provides business and consumer banking products to customers
through its 13 full-service depository branches in Southern
California located in the cities of Encinitas, Huntington Beach,
Irvine, Los Alamitos, Newport Beach, Palm Desert, Palm Springs, San
Bernardino, San Diego and Seal Beach and one office in Dallas,
Texas.
FORWARD-LOOKING COMMENTS
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. 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; 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; inflation, interest rate, market and
monetary fluctuations; the timely development of competitive new
products and services and the acceptance of these products and
services by new and existing customers; the willingness of users to
substitute competitors’ products and services for the Company’s
products and services; the impact of changes in financial services
policies, laws and regulations (including the Dodd-Frank Wall
Street Reform and Consumer Protection Act) and of governmental
efforts to restructure the U.S. financial regulatory system;
technological changes; the effect of acquisitions that the Company
may make, if any, including, without limitation, the failure to
achieve the expected revenue growth and/or expense savings from its
acquisitions; changes in the level of the Company’s nonperforming
assets and charge-offs; oversupply of inventory and continued
deterioration in values of California real estate, both residential
and commercial; the effect of changes in accounting policies and
practices, as may be adopted from time-to-time by bank regulatory
agencies, the Securities and Exchange Commission (“SEC”), the
Public Company Accounting Oversight Board, the Financial Accounting
Standards Board or other accounting standards setters; possible
other-than-temporary impairment of securities held by us; changes
in consumer spending, borrowing and savings habits; the effects of
the Company’s lack of a diversified loan portfolio, including the
risks of geographic and industry concentrations; ability to attract
deposits and other sources of liquidity; 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; unanticipated regulatory or
judicial proceedings; and the Company’s 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 2012 Annual Report
on Form 10-K, as amended, of Pacific Premier Bancorp, Inc. filed
with the SEC and available at the SEC’s Internet site
(http://www.sec.gov).
The Company specifically disclaims any obligation to update any
factors or to publicly announce the result of revisions to any of
the forward-looking statements included herein to reflect future
events or developments.
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED
STATEMENTS OF FINANCIAL CONDITION (dollars in thousands, except
share data)
June
30, March 31,
December 31,
September 30, June 30,
ASSETS
2013 2013
2012 2012 2012
(Unaudited) (Unaudited) (Audited) (Unaudited) (Unaudited)
Cash and due from banks $ 103,946 $ 99,431 $ 59,325 $ 58,216 $
64,945 Federal funds sold 26 27
27 27 27 Cash and cash
equivalents 103,972 99,458 59,352 58,243 64,972 Investment
securities available for sale 313,047 301,160 84,066 114,250
146,134 Securities held to maturity 11,917 10,974 11,247 12,191
12,744 Loans held for sale, net 3,617 3,643 3,681 4,728 2,401 Loans
held for investment 1,055,430 941,828 982,207 859,373 795,319
Allowance for loan losses (7,994 ) (7,994 )
(7,994 ) (7,658 ) (7,658 ) Loans held for investment,
net 1,047,436 933,834 974,213 851,715 787,661 Accrued interest
receivable 5,766 4,898 4,126 3,933 3,968 Other real estate owned
1,186 1,561 2,258 5,521 9,339 Premises and equipment 9,997 8,862
8,575 10,067 9,429 Deferred income taxes 8,644 2,646 6,887 5,515
5,585 Bank owned life insurance 23,674 17,701 13,485 13,362 13,240
Intangible assets 7,135 4,463 2,626 2,703 2,781 Goodwill 18,234
11,854 - - - Other assets 3,833 5,601
3,276 7,108 6,781 TOTAL
ASSETS $ 1,558,458 $ 1,406,655 $ 1,173,792 $
1,089,336 $ 1,065,035
LIABILITIES AND STOCKHOLDERS’
EQUITY
LIABILITIES: Deposit accounts: Noninterest bearing $ 345,063 $
316,536 $ 213,636 $ 211,410 $ 150,538 Interest bearing: Transaction
accounts 631,951 519,828 329,925 266,478 327,556 Retail
certificates of deposit 332,015 344,968 361,207 417,982 435,097
Wholesale certificates of deposit 5,160 4,387
- - - Total
deposits 1,314,189 1,185,719 904,768 895,870 913,191 FHLB advances
and other borrowings 48,082 44,191 115,500 75,500 28,500
Subordinated debentures 10,310 10,310 10,310 10,310 10,310 Accrued
expenses and other liabilities 17,066 8,846
8,697 7,770 16,965
TOTAL LIABILITIES 1,389,647 1,249,066
1,039,275 989,450 968,966
STOCKHOLDERS’ EQUITY:
Common stock, $.01 par value; 25,000,000
shares authorized;
shares issued and outstanding of
16,635,786, 15,437,531,13,661,648, 10,343,434 and 10,329,934 at
June 30, 2013, March31, 2013, December 31, 2012, September 30, 2012
and June 30,2012, respectively
166 154 137 103 103 Additional paid-in capital 142,759 128,075
107,453 76,414 76,258 Retained earnings 27,545 27,794 25,822 22,011
18,549
Accumulated other comprehensive income
(loss), net of tax(benefit) of ($1,160), $1,095, $772, $950 and
$810 at June 30,2013, March 31, 2013, December 31, 2012, September
30, 2012and June 30, 2012, respectively
(1,659 ) 1,566 1,105
1,358 1,159 TOTAL STOCKHOLDERS’ EQUITY
168,811 157,589 134,517
99,886 96,069 TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY $ 1,558,458 $ 1,406,655 $
1,173,792 $ 1,089,336 $ 1,065,035
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED
STATEMENTS OF OPERATIONS (dollars in thousands, except per share
data) (unaudited)
Three
Months Ended Six Months Ended
June 30, 2013
March 31, 2013 June 30, 2012 June 30, 2013 June 30, 2012
INTEREST INCOME Loans $ 13,688 $ 13,396 $ 12,098 $ 27,084 $
23,335 Investment securities and other interest-earning assets
1,248 839 948
2,087 1,827 Total interest income
14,936 14,235 13,046
29,171 25,162
INTEREST EXPENSE
Interest-bearing deposits: Interest on transaction accounts 280 218
223 498 552 Interest on certificates of deposit 753
801 1,224 1,554
2,651 Total interest-bearing deposits 1,033 1,019 1,447
2,052 3,203 FHLB advances and other borrowings 238 240 235 478 470
Subordinated debentures 76 77 82
153 166 Total interest expense
1,347 1,336 1,764
2,683 3,839 NET INTEREST INCOME BEFORE
PROVISION FOR LOAN LOSSES 13,589 12,899 11,282 26,488 21,323
PROVISION FOR LOAN LOSSES 322 296
- 618 - NET INTEREST
INCOME AFTER PROVISION FOR LOAN LOSSES 13,267
12,603 11,282 25,870
21,323
NONINTEREST INCOME Loan servicing fees 318 326
214 644 391 Deposit fees 457 440 472 897 973 Net gain from sales of
loans 222 723 10 945 10 Net gain from sales of investment
securities 1,068 - 174 1,068 174 Other-than-temporary impairment
loss on investment securities, net (5 ) (30 ) (45 ) (35 ) (82 )
Gain on FDIC transaction - - 5,340 - 5,340 Other income 371
265 364 636
662 Total noninterest income 2,431
1,724 6,529 4,155 7,468
NONINTEREST EXPENSE Compensation and benefits 5,687
5,097 3,947 10,784 7,467 Premises and occupancy 1,329 1,293 981
2,622 1,859 Data processing and communications 755 635 817 1,390
1,184 Other real estate owned operations, net 574 37 590 611 737
FDIC insurance premiums 196 140 168 336 301 Legal, audit and
professional expense 249 595 552 844 1,038 Marketing expense 264
206 264 470 479 Office and postage expense 322 263 217 585 380 Loan
expense 184 248 177 432 413 Deposit expense 515 160 34 675 97
Merger related expense 4,978 1,745 - 6,723 - Other expense
803 760 458 1,563
891 Total noninterest expense 15,856
11,179 8,205 27,035
14,846 NET INCOME (LOSS) BEFORE INCOME TAXES (158 )
3,148 9,606 2,990 13,945 INCOME TAX 91 1,176
3,795 1,267 5,442
NET INCOME (LOSS) $ (249 ) $ 1,972 $ 5,811 $ 1,723
$ 8,503
EARNINGS (LOSS) PER SHARE Basic
$ (0.02 ) $ 0.14 $ 0.56 $ 0.12 $ 0.82 Diluted $ (0.02 ) $ 0.13 $
0.54 $ 0.11 $ 0.80
WEIGHTED AVERAGE SHARES
OUTSTANDING Basic 15,516,537 14,355,407 10,329,934 14,939,179
10,332,935 Diluted 15,516,537 15,117,216 10,669,005 15,721,262
10,647,590
PACIFIC PREMIER BANCORP, INC. AND
SUBSIDIARIES STATISTICAL INFORMATION (dollars in
thousands)
For the
Three Months Ended For the Six Months Ended June 30, 2013 March 31,
2013 June 30, 2012 June 30, 2013 June 30, 2012
Profitability and
Productivity
Net interest margin 4.01 % 4.62 % 4.64 % 4.28 % 4.48 % Noninterest
expense to average total assets 4.51 3.82 3.21 4.19 2.98 Efficiency
ratio (1) 69.95 67.60 61.98 68.81 60.64 Return on average assets
(0.07 ) 0.67 2.28 0.27 1.71 Return on average equity (0.63 ) 5.65
25.21 2.30 18.88
Asset and
liability activity
Loans originated and purchased $ 189,443 $ 116,258 $ 176,769 $
305,701 $ 210,074 Repayments (33,375 ) (45,244 ) (56,967 ) (78,619
) (92,186 ) Loans sold (2,172 ) (5,048 ) (584 ) (7,220 ) (584 )
Increase (decrease) in loans, net 113,576 (40,417 ) 102,921 73,159
59,995 Increase in assets 151,803 232,863 79,864 384,666 103,907
Increase in deposits 128,470 280,951 66,474 409,421 84,314 Increase
(decrease) in borrowings 3,891 (71,309 ) - (67,418 ) -
(1)
Represent the ratio of noninterest expense
less OREO operations and merger related expense to the sum of net
interest income before provision for loan losses and total
noninterest income less gains/(loss) on sale of securities, and
gain on FDIC transactions.
Average Balance Sheet
Three Months Ended Three Months
Ended Three Months Ended June
30, 2013 March 31, 2013 June 30, 2012
Average Average
Average Average
Average Average
Balance Interest
Yield/Cost Balance Interest
Yield/Cost Balance
Interest Yield/Cost Assets
(dollars in thousands) Interest-earning assets: Cash and cash
equivalents $ 98,451 $ 60 0.24 % $ 69,143 $ 37 0.22 % $ 72,988 $ 35
0.19 % Federal funds sold 26 - 0.00 % 27 - 0.00 % 27 - 0.00 %
Investment securities 297,912 1,188 1.60 % 134,895 802 2.38 %
163,151 913 2.24 % Loans receivable, net (1) 964,486
13,688 5.69 % 928,577
13,396 5.85 % 736,178
12,098 6.57 % Total interest-earning
assets 1,360,875 14,936 4.40 % 1,132,642 14,235 5.09 % 972,344
13,046 5.36 % Noninterest-earning assets 44,064
38,911 48,880 Total assets $ 1,404,939 $ 1,171,553 $
1,021,224
Liabilities and Equity Deposit accounts:
Noninterest-bearing $ 309,311 $ - 0.00 % $ 237,081 $ - 0.00 % $
140,352 $ - 0.00 % Interest-bearing: Transaction accounts 521,784
280 0.22 % 379,638 218 0.23 % 323,813 223 0.28 % Retail
certificates of deposit 336,165 745 0.89 % 349,471 800 0.93 %
416,818 1,221 1.18 % Wholesale certificates of deposit 4,690
8 0.68 % 833
1 0.49 % 3,514
3 0.34 % Total deposits 1,171,950 1,033 0.35 %
967,023 1,019 0.43 % 884,497 1,447 0.66 % FHLB advances and other
borrowings 53,891 238 1.77 % 44,769 240 2.17 % 28,588 235 3.31 %
Subordinated debentures 10,310 76
2.96 % 10,310 77
3.03 % 10,310 82
3.20 % Total borrowings 64,201 314
1.96 % 55,079 317
2.33 % 38,898 317
3.28 % Total deposits and borrowings 1,236,151 1,347 0.44 %
1,022,102 1,336 0.53 % 923,395 1,764 0.77 % Other liabilities
9,645 9,766 5,627 Total liabilities 1,245,796
1,031,868 929,022 Stockholders' equity 159,143
139,685 92,202 Total liabilities and equity $ 1,404,939 $
1,171,553 $ 1,021,224 Net interest income $ 13,589 $ 12,899 $
11,282 Net interest rate spread (2) 3.96 % 4.56 % 4.59 % Net
interest margin (3) 4.01 % 4.62 % 4.64 % Ratio of interest-earning
assets to deposits and borrowings 110.09 % 110.81 % 105.30 %
(1) Average balance includes loans held for sale and
nonperforming loans and is net of deferred loan origination fees,
unamortized discounts and premiums, and allowance for loan losses.
(2) Represents the difference between the yield on interest-earning
assets and the cost of interest-bearing liabilities. (3) Represents
net interest income divided by average interest-earning assets.
Average Balance Sheet
Six Months Ended Six Months
Ended June 30, 2013 June 30, 2012 Average
Average Average
Average Balance
Interest Yield/Cost Balance
Interest Yield/Cost
Assets (dollars in thousands) Interest-earning assets: Cash
and cash equivalents $ 83,879 $ 98 0.24 % $ 84,583 $ 86 0.20 %
Federal funds sold 27 - 0.00 % 27 - 0.00 % Investment securities
216,854 1,989 1.83 % 149,683 1,741 2.33 % Loans receivable, net (1)
946,631 27,084 5.77 %
717,551 23,335 6.50 %
Total interest-earning assets 1,247,391 29,171 4.71 % 951,844
25,162 5.28 % Noninterest-earning assets 41,789
44,690 Total assets $ 1,289,180 $ 996,534
Liabilities and
Equity Deposit accounts: Noninterest-bearing $ 273,440 $ - 0.00
% $ 129,269 $ - 0.00 % Interest-bearing: Transaction accounts
451,104 498 0.22 % 309,614 552 0.36 % Retail certificates of
deposit 342,782 1,545 0.91 % 420,226 2,649 1.27 % Wholesale
certificates of deposit 2,772 9
0.65 % 1,757 2
0.23 % Total deposits 1,070,098 2,052 0.39 % 860,866 3,203 0.75 %
FHLB advances and other borrowings 49,355 478 1.95 % 28,577 470
3.31 % Subordinated debentures 10,310
153 2.99 % 10,310 166
3.24 % Total borrowings 59,665
631 2.13 % 38,887
636 3.29 % Total deposits and borrowings 1,129,763
2,683 0.48 % 899,753 3,839 0.86 % Other liabilities 9,685
6,689 Total liabilities 1,139,448 906,442 Stockholders'
equity 149,732 90,092 Total liabilities and equity $
1,289,180 $ 996,534 Net interest income $ 26,488 $ 21,323 Net
interest rate spread (2) 4.23 % 4.42 % Net interest margin (3) 4.28
% 4.48 % Ratio of interest-earning assets to deposits and
borrowings 110.41 % 105.79 % (1) Average balance includes
loans held for sale and nonperforming loans and is net of deferred
loan origination fees, unamortized discounts and premiums, and
allowance for loan losses. (2) Represents the difference between
the yield on interest-earning assets and the cost of
interest-bearing liabilities. (3) Represents net interest income
divided by average interest-earning assets.
PACIFIC
PREMIER BANCORP, INC. AND SUBSIDIARIES STATISTICAL
INFORMATION
June
30, 2013 March 31, 2013 December 31, 2012 September 30, 2012 June
30, 2012
Pacific Premier
Bank Capital Ratios
Tier 1 leverage ratio 10.97 % 12.55 % 12.07 % 9.48 % 9.48 % Tier 1
risk-based capital ratio 13.34 % 14.43 % 12.99 % 11.04 % 11.28 %
Total risk-based capital ratio 14.07 % 15.23 % 13.79 % 11.88 %
12.18 %
Pacific Premier
Bancorp, Inc. Capital Ratios
Tier 1 leverage ratio 11.15 % 12.84 % 12.71 % 9.58 % 9.60 % Tier 1
risk-based capital ratio 13.54 % 14.61 % 13.61 % 11.09 % 11.35 %
Total risk-based capital ratio 14.27 % 15.40 % 14.43 % 11.93 %
12.26 % Tangible common equity ratio (1) 9.36 % 10.16 % 11.26 %
8.94 % 8.78 %
Share
Data
Book value per share $ 10.15 $ 10.21 $ 9.85 $ 9.66 $ 9.30 Tangible
book value per share (1) 8.62 9.15 9.65 9.40 9.03 Closing stock
price 12.22 13.15 10.24 9.54 8.40 (1) Tangible common
equity to tangible assets (the "tangible common equity ratio") and
tangible book value per share are non-GAAP financial measures
derived from GAAP-based amounts. We calculate the tangible common
equity ratio by excluding the balance of intangible assets from
common shareholders' equity and dividing by tangible assets. 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 shareholders' equity
by shares outstanding. We believe that this information is
consistent with the treatment by bank regulatory agencies, which
exclude 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. 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 measures, this presentation may not be comparable to other
similarly titled measures reported by other companies. A
reconciliation of the non-GAAP measures of tangible common equity
and tangible book value per share to the GAAP measures of common
stockholder’s equity and book value per share is set forth below.
GAAP Reconciliation
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
STATISTICAL INFORMATION (dollars in thousands, except per
share data)
June 30,
2013 March 31, 2013 December 31, 2012 September 30, 2012 June 30,
2012 Total stockholders' equity $ 168,811 $ 157,589 $
134,517 $ 99,886 $ 96,069 Less: Intangible assets (25,369 )
(16,317 ) (2,626 ) (2,703 ) (2,781 )
Tangible common equity $ 143,442 $ 141,272 $
131,891 $ 97,183 $ 93,288 Book value
per share $ 10.15 $ 10.21 $ 9.85 $ 9.66 $ 9.30 Less: Intangible
book value per share (1.53 ) (1.06 ) (0.20 )
(0.26 ) (0.27 )
Tangible book value per share
$ 8.62 $ 9.15 $ 9.65 $ 9.40 $ 9.03
Total assets $ 1,558,458 $ 1,406,655 $ 1,173,792 $
1,089,336 $ 1,065,035 Less: Intangible assets (25,369 )
(16,317 ) (2,626 ) (2,703 ) (2,781 )
Tangible assets $ 1,533,089 $ 1,390,338 $
1,171,166 $ 1,086,633 $ 1,062,254
Tangible common equity ratio 9.36 % 10.16 % 11.26 % 8.94 %
8.78 %
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
STATISTICAL INFORMATION (dollars in thousands)
June 30, 2013 March 31,
2013 December 31, 2012 September 30, 2012 June 30, 2012
Loan
Portfolio
Business loans: Commercial and industrial $ 146,240 $ 140,592 $
115,354 $ 88,105 $ 84,191 Commercial owner occupied (1) 201,802
166,571 150,934 148,139 150,428 SBA 5,820 5,116 6,882 4,736 3,995
Warehouse facilities 135,317 138,935 195,761 112,053 61,111 Real
estate loans: Commercial non-owner occupied 295,767 256,015 253,409
262,046 242,700 Multi-family 172,797 139,100 156,424 173,484
183,742 One-to-four family (2) 84,672 87,109 97,463 62,771 56,694
Construction 2,135 - - 308 281 Land 10,438 7,863 8,774 11,005
11,191 Other loans 4,969 4,690
1,193 2,191 4,019 Total gross
loans (3) 1,059,957 945,991 986,194 864,838 798,352 Less loans held
for sale, net (3,617 ) (3,643 ) (3,681 )
4,728 (2,401 ) Total gross loans held for
investment 1,056,340 942,348 982,513 860,110 795,951 Less: Deferred
loan origination costs/(fees) and premiums/(discounts) (910 ) (520
) (306 ) (737 ) (632 ) Allowance for loan losses (7,994 )
(7,994 ) (7,994 ) (7,658 ) (7,658 )
Loans held for investment, net $ 1,047,436 $ 933,834
$ 974,213 $ 851,715 $ 787,661
Asset
Quality
Nonaccrual loans $ 2,032 $ 3,102 $ 2,206 $ 6,280 $ 8,426 Other real
estate owned 1,186 1,561 2,258
5,521 9,339 Nonperforming assets
$ 3,218 4,663 $ 4,464 11,801
$ 17,765 Allowance for loan losses 7,994 7,994 7,994
7,658 7,658 Allowance for loan losses as a percent of total
nonperforming loans 393.41 % 257.70 % 362.38 % 121.94 % 90.89 %
Nonperforming loans as a percent of gross loans 0.19 0.33 0.22 0.73
1.06 Nonperforming assets as a percent of total assets 0.21 0.33
0.38 1.08 1.67 Net loan charge-offs for the quarter ended $ 322 $
296 $ 270 $ 145 $ 458 Net loan charge-offs for quarter to average
total loans, net 0.13 % 0.13 % 0.12 % 0.07 % 0.25 % Allowance for
loan losses to gross loans 0.75 0.85 0.81 0.89 0.96
Delinquent
Loans:
30 - 59 days $ 669 $ 58 $ 106 $ 2,565 $ 399 60 - 89 days 580 1,077
303 164 2,885 90+ days (4) 1,073 1,881
482 4,154 3,423 Total
delinquency $ 2,322 $ 3,016 $ 891 $ 6,883
$ 6,707 Delinquency as a % of total gross loans 0.22
% 0.32 % 0.09 % 0.80 % 0.84 %
(1)
Majority secured by real estate.
(2)
Includes second trust deeds.
(3)
Total gross loans for June 30, 2013 is net
of the mark-to-market discounts on Canyon National loans of $2.1
million, on Palm Desert National loans of $4.0 million, and on SDTB
loans of $560,000 and of the mark-to-market premium on FAB loans of
$103,000.
(4)
All 90 day or greater delinquencies are on
nonaccrual status and reported as part of nonperforming assets.
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