Third Quarter 2013 Summary
- Net earnings of $0.18 per diluted
share
- Total loans increase 8% as excess
liquidity is deployed
- Noninterest-bearing deposits
increase to 28% of total deposits
- Nonperforming assets to total assets
declines to 0.15%
- Net interest margin of
3.93%
- Tangible book value per share
increases $0.20 to $8.82
Pacific Premier Bancorp, Inc. (NASDAQ:PPBI) (the “Company”), the
holding company of Pacific Premier Bank (the “Bank”), reported
earnings for the third quarter of 2013 of $3.1 million, or $0.18
per share on a diluted basis, compared with 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. Taking
into account the one-time merger-related expenses of $5.0 million
in connection with the acquisition of San Diego Trust Bank (“San
Diego Trust”), which closed in June 2013, the Company recorded a
net loss of $249,000, or $0.02 per share on a diluted basis, for
the second quarter of 2013.
For the three months ended September 30, 2013, the Company’s
return on average assets was 0.78% and return on average equity was
7.29%, compared with an adjusted return on average assets of 0.86%
and an adjusted return on average equity of 7.59% for the three
months ended June 30, 2013.
Steven R. Gardner, President and Chief Executive Officer of the
Company, commented on the results, “We executed well in the third
quarter on our strategies to redeploy our excess liquidity into
higher yielding assets. Our loan portfolio grew 8% during the third
quarter through a combination of strong loan production and
opportunistic purchases of multi-family and single family
residential mortgage loans. We generated loan growth of 18.8% in
C&I and 10.1% in owner-occupied commercial real estate, which
helped to offset reduced activity in our warehouse lending
business. Most of our loan production occurred late in the third
quarter, with our end-of-period gross loans being over $100 million
higher than our average loans in the quarter, which we expect will
result in further improvement in interest income in the fourth
quarter.
“We are experiencing positive momentum in most of our lending
groups, including C&I, CRE, construction, HOA, and SBA. We
expect to see continued strength in our loan production, which we
anticipate will result in further improvement in our mix of
interest-earning assets and additional leverage from our operating
model.
“We have now successfully completed the systems conversions for
both First Associations Bank and San Diego Trust Bank, and the
integration of their operations has gone very smoothly. We are
continuing our efforts to capitalize on the attractive growth
opportunities that exist in the San Diego market and the national
HOA market. With these integrations completed, we are continuing
our evaluation of additional strategic opportunities that can
further expand our franchise and create additional value for our
shareholders,” said Mr. Gardner.
Net Interest Income and Net Interest Margin
Net interest income totaled $15.0 million in the third quarter
of 2013, up $1.4 million or 10.4%, compared with the second quarter
of 2013. The increase in net interest income reflected higher
average interest-earning assets of $154.3 million, partially offset
by a decrease in net interest margin. The increase in average
interest-earning assets during the third quarter of 2013 was
primarily related to a full quarter’s impact of interest-earning
assets acquired from San Diego Trust in June 2013. The increase in
average assets for the third quarter of 2013 included loans of
$77.4 million, investment securities of $48.8 million and cash and
cash equivalents of $28.1 million.
The net interest margin for the third quarter of 2013 was 3.93%,
compared with 4.01% in the second quarter of 2013. The decrease in
net interest margin is primarily attributable to a decrease in
yield on average interest-earning assets of 11 basis points,
primarily from a higher mix of lower yielding investment securities
and cash, which were acquired in our acquisition of San Diego Trust
and a decrease in our loan portfolio yield. The loan portfolio
yield for the third quarter was 5.49%, 20 basis points lower than
the second quarter and primarily reflected lower rates on loan
originations than the rates on our existing portfolio loans.
Partially offsetting this decrease was lower deposit costs of 4
basis points resulting from an improved mix of lower cost deposits
associated with the San Diego Trust acquisition and lowering our
pricing on certificates of deposits.
Provision for Loan Losses
We recorded a $646,000 provision for loan losses during the
third quarter of 2013, compared with $322,000 provision for loan
losses for the second quarter of 2013. The credit quality of our
loan portfolio continues to remain strong, which has allowed us to
keep our allowance for loan losses unchanged during the quarter.
Net loan charge-offs amounted to $646,000 in the third quarter of
2013, up $324,000 from $322,000 experienced during the second
quarter of 2013. The increase in charge-offs was primarily
attributable to three loans acquired in our FDIC assisted
transactions.
Noninterest income
Noninterest income for the third quarter of 2013 amounted to
$2.3 million, down $110,000 or 4.5%, compared with the second
quarter of 2013. The decrease was primarily attributable to lower
gains on the sale of investment securities of $763,000, a decline
in loan servicing fees of $81,000, and a decline in other income of
$75,000. Partially offsetting these decreases were higher gains on
loan sales of $760,000 from the sale of $7.8 million in Small
Business Administration (“SBA”) loans resulting in a 9% overall
premium and $3.7 million in commercial real estate.
Noninterest Expense
Noninterest expense totaled $11.8 million for the third quarter
of 2013, down $4.1 million or 25.8%, compared with the second
quarter of 2013. The decrease primarily related to one-time
expenses related to the San Diego Trust acquisition in the previous
quarter of $5.0 million and a decline in other real estate owned
operations of $575,000. These decreases were partially offset by
higher expense primarily related to the full quarter impact of the
San Diego Trust acquisition and costs related to higher loan
production. Increases occurred within the following expense
categories:
- Legal, audit and professional fees by
$430,000;
- Premises and occupancy by
$271,000;
- Compensation and benefits costs
increased by $261,000;
- Other expense by $256,000;
- Loan expenses by $98,000;
- Data processing and communications
expense by $69,000; and
- Office and postage expense of
$53,000.
Income Tax
For the third quarter of 2013, our effective tax rate was 37.6%,
compared with a negative 57.6% for the second quarter of 2013.
Operating results during the second quarter of 2013 included
$955,000 of merger-related costs associated with the San Diego
Trust acquisition that were treated as non-deductible transaction
costs, which was largely the cause for the negative effective tax
rate. For the first three quarters of 2013, the effective tax rate
was 39.4%, compared to 38.7% for the first three quarters of
2012.
Assets and Liabilities
At September 30, 2013, assets totaled $1.6 billion, up $10.6
million or 0.7% from June 30, 2013, and up $395.2 million or 33.7%
from December 31, 2012. The increase in assets since year-end 2012
was primarily related to the acquisitions of First Associations
Bank (“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 increases in assets from these
acquisitions was the liquidity used to reduce higher-cost deposits
by $112.3 million and to pay down Federal Home Loan Bank (“FHLB”)
borrowings of $29.0 million. The increase in assets during the
third quarter of 2013 was primarily related to loans held for
investment of $83.5 million, partially offset by a decrease in cash
of $42.6 million and investment securities available for sale of
$30.2 million.
Investment securities available for sale totaled $282.8 million
at September 30, 2013, down $30.2 million or 9.6% from June 30,
2013, and up $198.8 million or 236.5% from December 31, 2012. The
increase in securities since year-end 2012 was primarily due to the
First Associations acquisition in March 2013, which added $222.4
million of investment securities at the acquisition date, the San
Diego Trust acquisition in June, which added $124.8 million at the
acquisition date, and purchases of $98.8 million of investment
securities, partially offset by the sale of $210.9 million of
securities, and $27.5 million in principal pay downs. During the
third quarter of 2013, we purchased $92.6 million of investment
securities as we put excess liquidity from our acquisitions to
work. Towards the end of the third quarter of 2013, we were able to
sell $109.3 million of investment securities to help fund two
sizable loan purchases and improve our interest-earning asset
mix.
Net loans held for investment totaled $1.1 billion at September
30, 2013, an increase of $83.5 million or 8.0% from June 30, 2013
and an increase of $156.8 million or 16.1% from December 31, 2012.
The increase in loans from December 31, 2012 included loans from
the San Diego Trust acquisition of $42.4 million and from First
Associations acquisition of $26.4 million and was primarily
associated with increases in real estate loan balances of $170.7
million, commercial owner occupied loans of $71.2 million and
commercial and industrial loans of $58.4 million. Partially
offsetting these increases was a decrease in warehouse facility
loans of $146.7 million. The increase in loan balance from the end
of the second quarter was primarily related to increases in
one-to-four family loans of $68.0 million, multi-family loans of
$46.1 million, commercial and industrial loans of $27.5 million and
commercial owner occupied loans of $20.4 million, partially offset
by a decrease in warehouse facilities of $86.2 million. During the
third quarter of 2013, commitments on our warehouse repurchase
facility credits decreased $13.8 million to a total of $303.5
million with our end of period utilization rates for these loans
decreasing from 42.7% at June 30, 2013 to 16.18% at September 30,
2013.
Loan activity during the third quarter of 2013 included loan
originations of $102.7 million, loan purchases of $124.4 million,
partially offset by an increase in undisbursed loan funds of $100.1
million, loan repayments of $32.9 million and loan sales of $11.5
million. Our loan originations were well diversified and included
commercial non-owner occupied of $36.6 million, commercial owner
occupied of $20.1 million, homeowner’s association loans of $18.2
million, commercial and industrial of $14.1 million and multifamily
of $5.1 million. Loan originations for the third quarter of 2013
had a weighted average rate of 4.67%, compared to 4.44% in the
previous quarter. Our loan purchases included residential loans of
$76.7 million and multifamily loans of $43.2 million. At September
30, 2013, our loan to deposit ratio was 88.9%, up from 80.6% at
June 30, 2013, but down from 109.0% at December 31, 2012.
Deposits totaled $1.3 billion at September 30, 2013, down $30.1
million or 2.3% from June 30, 2013 and up $379.4 million or 41.9%
from December 31, 2012. The increase in deposits since year-end
2012 was primarily related to the San Diego Trust and First
Associations acquisitions. 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 the 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 $112.3 million in the first
three quarters 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.
During the third quarter of 2013, we had a decrease in retail
certificates of deposit of $51.1 million, partially offset by
increases in noninterest-bearing accounts of $18.5 million and
interest-bearing transaction accounts of $2.5 million. These
deposit changes have increased the mix of our transaction accounts
to 77.7% at September 30, 2013, up from 74.3% at June 30, 2013 and
60.1% at year-end 2012. The total end of period cost of deposits at
September 30, 2013 was 0.30%, down from 0.35% at June 30, 2013 and
0.51% at December 31, 2012.
At September 30, 2013, total borrowings amounted to $96.8
million, up $38.4 million or 65.7% from June 30, 2013, but down
$29.0 million or 23.1% from December 31, 2012. The decrease in
borrowings since year-end 2012 was primarily related to the
reduction of FHLB overnight advances taken out to fund loans,
partially offset by an increase of $23.0 million in repurchase
agreement debt related to our homeowner’s association business. The
increase from the prior quarter included $35 million in FHLB
overnight advances used to fund our loan growth with the remainder
related to repurchase agreement debt associated with our
homeowner’s association depositors. Total borrowings at September
30, 2013 represented 6.2% of total assets and had an end of period
weighted average cost of 1.32%, compared with 3.7% of total assets
at a weighted average cost of 2.13% at June 30, 2013, and 10.7% of
total assets at a weighted average cost of 1.19% at December 31,
2012.
Asset Quality
At September 30, 2013, nonperforming assets totaled $2.3 million
or 0.15% of total assets, down from $3.2 million or 0.21% of total
assets at June 30, 2013. During the third quarter of 2013,
nonperforming loans decreased $879,000 to total $1.2 million and
other real estate owned remained unchanged at $1.2 million.
Our allowance for loan losses at September 30, 2013 was $8.0
million, unchanged from June 30, 2013. At September 30, 2013, the
drop in our nonaccrual loans resulted in an increase in our
allowance for loan losses as a percent of nonaccrual loans to
693.3% at September 30, 2013, compared with 393.4% at June 30,
2013. At September 30, 2013, the ratio of allowance for loan losses
to total gross loans was 0.70%, down from 0.75% at June 30, 2013.
Including the loan fair market value discounts recorded from our
past acquisitions with our allowance for loan losses to total gross
loans, our ratio was 1.06% at September 30, 2013, compared with
1.11% at June 30, 2013.
Capital Ratios
At September 30, 2013, our ratio of tangible common equity to
total assets was 9.51%, with a tangible book value of $8.82 per
share and a book value per share of $10.28.
At September 30, 2013, the Bank exceeded all regulatory capital
requirements with a ratio for tier 1 leverage capital of 10.02%,
tier 1 risked-based capital of 13.28% and total risk-based capital
of 13.96%. 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 September 30, 2013, the
Company had a ratio for tier 1 leverage capital of 10.19%, tier 1
risked-based capital of 13.48% and total risk-based capital of
14.16%.
Conference Call and Webcast
The Company will host a conference call at 9:00 a.m. PT / 12:00
p.m. ET on October 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) 549-7880, conference ID
4645499. Additionally a telephone replay will be made available
through October 31, 2013 at (800) 406-7325, conference ID
4645499.
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)
September 30, June 30,
March 31,
December 31, September 30,
ASSETS 2013 2013 2013 2012
2012 (Unaudited) (Unaudited) (Unaudited) (Audited)
(Unaudited) Cash and due from banks $ 61,393 $ 103,946 $ 99,431 $
59,325 $ 58,216 Federal funds sold 26 26
27 27 27 Cash and
cash equivalents 61,419 103,972 99,458 59,352 58,243 Investment
securities available for sale 282,846 313,047 301,160 84,066
114,250 FHLB/Federal Reserve Bank/TIB stock, at cost 10,827 11,917
10,974 11,247 12,191 Loans held for sale, net 3,176 3,617 3,643
3,681 4,728 Loans held for investment 1,138,969 1,055,430 941,828
982,207 859,373 Allowance for loan losses (7,994 )
(7,994 ) (7,994 ) (7,994 ) (7,658 ) Loans held
for investment, net 1,130,975 1,047,436 933,834 974,213 851,715
Accrued interest receivable 5,629 5,766 4,898 4,126 3,933 Other
real estate owned 1,186 1,186 1,561 2,258 5,521 Premises and
equipment 9,829 9,997 8,862 8,575 10,067 Deferred income taxes
9,029 8,644 2,646 6,887 5,515 Bank owned life insurance 23,862
23,674 17,701 13,485 13,362 Intangible assets 6,881 7,135 4,463
2,626 2,703 Goodwill 17,428 18,234 11,854 - - Other assets
5,933 3,833 5,601 3,276
7,108 TOTAL ASSETS $ 1,569,020 $
1,558,458 $ 1,406,655 $ 1,173,792 $ 1,089,336
LIABILITIES AND STOCKHOLDERS’ EQUITY LIABILITIES:
Deposit accounts: Noninterest bearing $ 363,606 $ 345,063 $ 316,536
$ 213,636 $ 211,410 Interest bearing: 920,528
969,126 869,183 691,132
684,460
Total deposits
1,284,134 1,314,189 1,185,719 904,768 895,870 FHLB advances and
other borrowings 86,474 48,082 44,191 115,500 75,500 Subordinated
debentures 10,310 10,310 10,310 10,310 10,310 Accrued expenses and
other liabilities 16,948 17,066
8,846 8,697 7,770 TOTAL
LIABILITIES 1,397,866 1,389,647
1,249,066 1,039,275 989,450
STOCKHOLDERS’ EQUITY: Common stock, $.01 par value; 25,000,000
shares authorized; shares issued and outstanding of 16,641,991,
16,635,786, 15,437,531, 13,661,648 and 10,343,434 at September 30,
2013, June 30, 2013, March 31, 2013, December 31, 2012 and
September 30, 2012, respectively 166 166 154 137 103 Additional
paid-in capital 143,014 142,759 128,075 107,453 76,414 Retained
earnings 30,611 27,545 27,794 25,822 22,011 Accumulated other
comprehensive income (loss), net of tax (benefit) of ($1,843),
($1,160), $1,095, $772 and $950 at September 30, 2013, June 30,
2013, March 31, 2013, December 31, 2012 and September 30, 2012,
respectively (2,637 ) (1,659 ) 1,566
1,105 1,358 TOTAL STOCKHOLDERS’ EQUITY
171,154 168,811 157,589
134,517 99,886 TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY $ 1,569,020 $ 1,558,458 $
1,406,655 $ 1,173,792 $ 1,089,336
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (dollars in thousands,
except per share data) (unaudited)
Three Months Ended Nine
Months Ended September 30, June
30, September 30, September
30, September 30, 2013
2013 2012 2013 2012 INTEREST
INCOME Loans $ 14,420 $ 13,688 $ 12,847 $ 41,504 $ 36,182
Investment securities and other interest-earning assets
1,954 1,248 779 4,041
2,606 Total interest income 16,374
14,936 13,626 45,545
38,788
INTEREST EXPENSE Deposits 1,045
1,033 1,444 3,097 4,647 FHLB advances and other borrowings 244 238
247 722 717 Subordinated debentures 77 76
81 230 247 Total
interest expense 1,366 1,347
1,772 4,049 5,611 NET INTEREST
INCOME BEFORE PROVISION FOR LOAN LOSSES 15,008 13,589 11,854 41,496
33,177 PROVISION FOR LOAN LOSSES 646 322
145 1,264 145 NET
INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 14,362
13,267 11,709 40,232
33,032
NONINTEREST INCOME Loan
servicing fees 237 318 224 881 615 Deposit fees 485 457 486 1,382
1,459 Net gain (loss) from sales of loans 982 222 (41 ) 1,927 (31 )
Net gain from sales of investment securities 305 1,068 857 1,373
1,031 Other-than-temporary impairment loss on investment
securities, net 16 (5 ) (36 ) (19 ) (118 ) Gain on FDIC transaction
- - - - 5,340 Other income 296 371
420 932 1,082 Total
noninterest income 2,321 2,431
1,910 6,476 9,378
NONINTEREST
EXPENSE Compensation and benefits 5,948 5,687 4,367 16,732
11,834 Premises and occupancy 1,600 1,329 1,063 4,222 2,922 Data
processing and communications 824 755 582 2,214 1,766 Other real
estate owned operations, net (1 ) 574 244 610 981 FDIC insurance
premiums 201 196 165 537 466 Legal, audit and professional expense
679 249 473 1,523 1,511 Marketing expense 307 264 225 777 704
Office and postage expense 375 322 232 960 612 Loan expense 282 184
219 714 632 Deposit expense 497 515 38 1,172 136 Merger related
expense - 4,978 - 6,723 - Other expense 1,059
803 423 2,622 1,313
Total noninterest expense 11,771 15,856
8,031 38,806 22,877
NET INCOME (LOSS) BEFORE INCOME TAX 4,912 (158 ) 5,588 7,902
19,533 INCOME TAX 1,846 91 2,126
3,113 7,568 NET INCOME (LOSS) $
3,066 $ (249 ) $ 3,462 $ 4,789 $ 11,965
EARNINGS (LOSS) PER SHARE Basic $ 0.19 $ (0.02 ) $
0.34 $ 0.31 $ 1.16 Diluted $ 0.18 $ (0.02 ) $ 0.32 $ 0.29 $ 1.12
WEIGHTED AVERAGE SHARES OUTSTANDING Basic 16,640,471
15,516,537 10,330,814 15,512,508 10,332,223 Diluted 17,482,230
15,516,537 10,832,934 16,314,701 10,709,822
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
STATISTICAL INFORMATION (dollars in thousands)
Three Months Ended
Nine Months Ended September 30,
June 30, September 30,
September 30, September 30,
2013 2013 2012 2013 2012
Profitability and
Productivity
Net interest margin 3.93 % 4.01 % 4.61 % 4.12 % 4.52 % Noninterest
expense to average total assets 2.99 4.51 3.02 3.73 2.98 Efficiency
ratio (1) 73.38 69.95 60.14 70.45 60.46 Return on average assets
0.78 (0.07 ) 1.30 0.46 1.56 Return on average equity 7.29 (0.63 )
14.19 4.09 17.23
Asset and
liability activity
Loans originated and purchased $ 227,148 $ 189,443 $ 132,509 $
532,849 $ 342,583 Repayments (32,856 ) (33,375 ) (42,597 ) (111,475
) (134,783 ) Loans sold (11,502 ) (2,172 ) (13,806 ) (18,722 )
(14,390 ) Increase in loans, net 83,098 113,576 66,381 156,257
126,376 Increase in assets 10,562 151,803 24,301 395,228 128,208
Increase (decrease) in deposits (30,055 ) 128,470 (17,321 ) 379,366
66,993 Increase (decrease) in borrowings 38,392 3,891 47,000
(29,026 ) 47,000 (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.
PACIFIC PREMIER
BANCORP, INC. AND SUBSIDIARIES STATISTICAL INFORMATION
Average Balance Sheet Three
Months Ended Three Months Ended
Three Months Ended September 30,
2013 June 30, 2013 September 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 $ 126,503 $ 64 0.20 % $ 98,451 $ 60 0.24 % $
40,459 $ 17 0.17 % Federal funds sold 26 - 0.00 % 26 - 0.00 % 27 -
0.00 % Investment securities 346,737 1,890 2.18 % 297,912 1,188
1.60 % 150,198 762 2.03 % Loans receivable, net (1)
1,041,871 14,420 5.49 % 964,486 13,688 5.69 %
837,070 12,847 6.14 % Total interest-earning assets
1,515,137 16,374 4.29 % 1,360,875 14,936 4.40 % 1,027,754 13,626
5.30 % Noninterest-earning assets 61,873 44,064
34,379 Total assets $ 1,577,010 $ 1,404,939 $ 1,062,133
Liabilities and Equity Interest-bearing deposits: Interest
checking $ 109,775 $ 38 0.14 % $ 115,935 $ 30 0.10 % $ 65,998 $ 22
0.13 % Money market 445,717 313 0.28 % 328,726 221 0.27 % 162,856
202 0.49 % Savings 80,298 31 0.15 % 77,123 29 0.15 % 84,819 56 0.26
% Time 316,931 663 0.83 % 340,855 753
0.89 % 425,879 1,164 1.09 % Total interest-bearing
deposits 952,721 1,045 0.44 % 862,639 1,033 0.48 % 739,552 1,444
0.78 % FHLB advances and other borrowings 66,284 244 1.46 % 53,891
238 1.77 % 42,690 247 2.30 % Subordinated debentures 10,310
77 2.96 % 10,310 76 2.96 % 10,310
81 3.13 % Total borrowings 76,594 321 1.66 %
64,201 314 1.96 % 53,000 328 2.46 %
Total interest-bearing liabilities 1,029,315 1,366 0.53 % 926,840
1,347 0.58 % 792,552 1,772 0.89 % Noninterest-bearing deposits
362,442 309,311 164,777 Other liabilities 16,974
9,645 7,235 Total liabilities 1,408,731 1,245,796 964,564
Stockholders' equity 168,279 159,143 97,569
Total liabilities and equity $ 1,577,010 $ 1,404,939 $ 1,062,133
Net interest income $ 15,008 $ 13,589 $ 11,854 Net interest rate
spread (2) 3.76 % 3.82 % 4.41 % Net interest margin (3) 3.93 % 4.01
% 4.61 % Ratio of interest-earning assets to interest-bearing
liabilities 147.20 % 146.83 % 129.68 % (1) Average balance
includes loans held for sale and nonperforming loans and is net of
deferred loan origination fees, unamortized discounts and premiums,
and ALLL. (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
Average Balance Sheet Nine Months
Ended Nine Months Ended
September 30, 2013 September 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 $ 103,592 $ 161 0.21 % $ 70,743 $ 96 0.18 %
Federal funds sold 26 - 0.00 % 27 - 0.00 % Investment securities
261,300 3,880 1.98 % 149,836 2,510 2.23 % Loans receivable, net (1)
980,695 41,504 5.66 % 757,373 36,182
6.37 % Total interest-earning assets 1,345,613 45,545 4.53 %
977,979 38,788 5.29 % Noninterest-earning assets 41,957
44,136 Total assets $ 1,387,570 $ 1,022,115
Liabilities
and Equity Interest-bearing deposits: Interest checking $
86,505 $ 75 0.12 % $ 70,160 $ 78 0.15 % Money market 347,349 711
0.27 % 151,237 531 0.47 % Savings 79,433 95 0.16 % 89,447 223 0.33
% Time 335,935 2,216 0.88 % 422,648
3,815 1.21 % Total interest-bearing deposits 849,222 3,097 0.49 %
733,492 4,647 0.85 % FHLB advances and other borrowings 54,146 722
1.78 % 33,316 717 2.87 % Subordinated debentures 10,310
230 2.98 % 10,310 247 3.20 % Total borrowings
64,456 952 1.97 % 43,626 964 2.95 %
Total interest-bearing liabilities 913,678 4,049 0.59 % 777,118
5,611 0.96 % Noninterest-bearing deposits 307,714 141,494 Other
liabilities 10,189 10,901 Total liabilities 1,231,581
929,513 Stockholders' equity 155,989 92,602 Total
liabilities and equity $ 1,387,570 $ 1,022,115 Net interest income
$ 41,496 $ 33,177 Net interest rate spread (2) 3.94 % 4.33 % Net
interest margin (3) 4.12 % 4.52 % Ratio of interest-earning assets
to interest-bearing liabilities 147.27 % 125.85 % (1)
Average balance includes loans held for sale and nonperforming
loans and is net of deferred loan origination fees, unamortized
discounts and premiums, and ALLL. (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 (dollars in thousands)
September 30,
June 30, March 31,
December 31, September
30, 2013 2013 2013 2012 2012
Loan
Portfolio
Business loans: Commercial and industrial $ 173,720 $ 146,240 $
140,592 $ 115,354 $ 88,105 Commercial owner occupied (1) 222,162
201,802 166,571 150,934 148,139 SBA 6,455 5,820 5,116 6,882 4,736
Warehouse facilities 49,104 135,317 138,935 195,761 112,053 Real
estate loans: Commercial non-owner occupied 304,979 295,767 256,015
253,409 262,046 Multi-family 218,929 172,797 139,100 156,424
173,484 One-to-four family (2) 152,667 84,672 87,109 97,463 62,771
Construction 2,835 2,135 - - 308 Land 7,371 10,438 7,863 8,774
11,005 Other loans 3,793 4,969
4,690 1,193 2,191 Total gross
loans (3) 1,142,015 1,059,957 945,991 986,194 864,838 Less loans
held for sale, net (3,176 ) (3,617 ) (3,643 )
(3,681 ) (4,728 ) Total gross loans held for
investment 1,138,839 1,056,340 942,348 982,513 860,110 Less:
Deferred loan origination costs/(fees) and premiums/(discounts) 130
(910 ) (520 ) (306 ) (737 ) Allowance for loan losses (7,994
) (7,994 ) (7,994 ) (7,994 ) (7,658 )
Loans held for investment, net $ 1,130,975 $ 1,047,436
$ 933,834 $ 974,213 $ 851,715
Asset
Quality
Nonaccrual loans $ 1,153 $ 2,032 $ 3,102 $ 2,206 $ 6,280 Other real
estate owned 1,186 1,186 1,561
2,258 5,521 Nonperforming assets
$ 2,339 $ 3,218 $ 4,663 $ 4,464 $
11,801 Allowance for loan losses 7,994 7,994 7,994 7,994
7,658 Allowance for loan losses as a percent of total nonperforming
loans 693.32 % 393.41 % 257.70 % 362.38 % 121.94 % Nonperforming
loans as a percent of gross loans 0.10 0.19 0.33 0.22 0.73
Nonperforming assets as a percent of total assets 0.15 0.21 0.33
0.38 1.08 Net loan charge-offs for the quarter ended $ 646 $ 322 $
296 $ 270 $ 145 Net loan charge-offs for quarter to average total
loans, net 0.25 % 0.13 % 0.13 % 0.12 % 0.07 % Allowance for loan
losses to gross loans 0.70 0.75 0.85 0.81 0.89
Delinquent
Loans:
30 - 59 days $ 724 $ 669 $ 58 $ 106 $ 2,565 60 - 89 days 214 580
1,077 303 164 90+ days (4) 111 1,073
1,881 482 4,154 Total
delinquency $ 1,049 $ 2,322 $ 3,016 $ 891
$ 6,883 Delinquency as a % of total gross loans 0.09
% 0.22 % 0.32 % 0.09 % 0.80 % (1) Majority secured by real
estate. (2) Includes second trust deeds. (3) Total gross loans for
September 30, 2013 is net of the unaccreted mark-to-market
discounts on Canyon National loans of $2.3 million, on Palm Desert
National loans of $3.7 million, and on SDTB loans of $230,000 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.
PACIFIC PREMIER
BANCORP, INC. AND SUBSIDIARIES STATISTICAL INFORMATION
(dollars in thousands, except per share data)
September 30, June
30, March 31,
December 31, September 30,
2013 2013 2013 2012 2012
Deposit
Accounts
Noninterest-bearing $ 363,606 $ 345,063 $ 316,536 $ 213,636 $
211,410 Interest-bearing: Checking 106,740 124,790 115,541 14,299
11,684 Money market 446,885 425,884 323,709 236,206 174,375 Savings
80,867 81,277 80,578 79,420 80,419 Time 286,036
337,175 349,355 361,207
417,982 Total interest-bearing 920,528
969,126 869,183 691,132
684,460 Total deposits $ 1,284,134 $ 1,314,189
$ 1,185,719 $ 904,768 $ 895,870
Pacific Premier
Bank Capital Ratios
Tier 1 leverage ratio 10.02 % 10.97 % 12.55 % 12.07 % 9.48 % Tier 1
risk-based capital ratio 13.28 % 13.34 % 14.43 % 12.99 % 11.04 %
Total risk-based capital ratio 13.96 % 14.07 % 15.23 % 13.79 %
11.88 %
Pacific Premier
Bancorp, Inc. Capital Ratios
Tier 1 leverage ratio 10.19 % 11.15 % 12.84 % 12.71 % 9.58 % Tier 1
risk-based capital ratio 13.48 % 13.54 % 14.61 % 13.61 % 11.09 %
Total risk-based capital ratio 14.16 % 14.27 % 15.40 % 14.43 %
11.93 % Tangible common equity ratio (1) 9.51 % 9.36 % 10.16 %
11.26 % 8.94 %
Share
Data
Book value per share $ 10.28 $ 10.15 $ 10.21 $ 9.85 $ 9.66 Tangible
book value per share (1) 8.82 8.62 9.15 9.65 9.40 Closing stock
price 13.42 12.22 13.15 10.24 9.54 (1) 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.
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
STATISTICAL INFORMATION (dollars in thousands, except per
share data)
GAAP Reconciliations 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.
September 30,
June 30, March 31,
December 31, September
30, 2013 2013 2013 2012 2012
Total stockholders' equity $ 171,154 $ 168,811 $ 157,589 $
134,517 $ 99,886 Less: Intangible assets (24,309 )
(25,369 ) (16,317 ) (2,626 ) (2,703 )
Tangible common equity $ 146,845 $ 143,442 $
141,272 $ 131,891 $ 97,183 Book value
per share $ 10.28 $ 10.15 $ 10.21 $ 9.85 $ 9.66 Less: Intangible
book value per share (1.46 ) (1.53 ) (1.06 )
(0.20 ) (0.26 )
Tangible book value per share
$ 8.82 $ 8.62 $ 9.15 $ 9.65 $ 9.40
Total assets $ 1,569,020 $ 1,558,458 $ 1,406,655 $
1,173,792 $ 1,089,336 Less: Intangible assets (24,309 )
(25,369 ) (16,317 ) (2,626 ) (2,703 )
Tangible assets $ 1,544,711 $ 1,533,089 $
1,390,338 $ 1,171,166 $ 1,086,633
Tangible common equity ratio 9.51 % 9.36 % 10.16 % 11.26 %
8.94 %
For the second quarter of 2013, adjusted
net income, adjusted diluted earnings per share, adjusted return on
average assets and adjusted return on average equity are non-GAAP
financial measures derived from GAAP-based amounts. We calculate
these figures by excluding merger related expense from the results.
Accordingly, we believe that these non-GAAP financial measures
provide comparable information that is important to investors and
that is useful in understanding our earnings and return 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 adjusted
measures, this presentation may not be comparable to other
similarly titled adjusted measures reported by other companies.
June 30, 2013 Net income ($249 ) Less:
Merger related expense, net of tax 3,268
Adjusted
net income $ 3,019 Diluted earnings per share
($0.02 ) Less merger related expense effect 0.21
Adjusted diluted earnings per share $ 0.19
Return on average assets (0.07 %) Less merger related expense
effect 0.93
Adjusted return on average assets
0.86 % Return on average equity (0.63 %) Less merger
related expense effect 8.22
Adjusted return on
average equity 7.59 %
Pacific Premier Bancorp, Inc.Steven R.
GardnerPresident/CEO949-864-8000orKent J. SmithExecutive Vice
President/CFO949-864-8000
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