Date of Report (Date of earliest event reported)
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March 21, 2013 (March 15, 2013)
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PACIFIC PREMIER BANCORP, INC.
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(Exact name of registrant as specified in its charter)
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DELAWARE
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0-22193
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33-0743196
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(State or other jurisdiction
of incorporation)
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(Commission
File Number)
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(I.R.S. Employer
Identification No.)
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17901 Von Karman Avenue, Suite 1200, Irvine, CA
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92614
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(Address of principal executive offices)
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(Zip Code)
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Registrant’s telephone number, including area code
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(949) 864-8000
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Not Applicable
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(Former name or former address, if changed since last report.)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Exhibit 99.2
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Unaudited pro forma combined consolidated statement of financial condition of Pacific Premier Bancorp, Inc. as of December 31, 2012 and the unaudited pro forma combined consolidated statement of operations of Pacific Premier Bancorp, Inc. for the year ended December 31, 2012, which give effect to the First Associations Bank acquisition.
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PACIFIC PREMIER BANCORP, INC.
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Dated:
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May 31, 2013
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By:
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/s/ STEVEN R. GARDNER
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Steven R. Gardner
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President and Chief Executive Officer
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PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
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UNAUDITED PRO FORMA COMBINED CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
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(Dollars in thousands)
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Pacific Premier
Bancorp, Inc.
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First Associations
Bank
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Pro Forma Acquisition
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Combined Pro forma
Pacific Premier
Bancorp, Inc.
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At December 31, 2012
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At December 31, 2012
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Adjustments |
At December 31, 2012
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ASSETS
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Cash and due from banks
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$ | 59,325 | $ | 132,598 | $ | (91,972 | ) | (1) | $ | 99,951 | ||||||||
Federal funds sold
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27 | - | - | 27 | ||||||||||||||
Cash and cash equivalents
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59,352 | 132,598 | (91,972 | ) | 99,978 | |||||||||||||
Investment securities available for sale
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84,066 | 213,806 | 2,478 | (2) | 300,350 | |||||||||||||
FHLB stock/Federal Reserve Bank stock/TIB stock, at cost
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11,247 | - | - | 11,247 | ||||||||||||||
Loans held for sale, net
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3,681 | - | - | 3,681 | ||||||||||||||
Loans held for investment
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982,207 | 22,636 | 158 | (3) | 1,005,001 | |||||||||||||
Allowance for loan losses
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(7,994 | ) | (224 | ) | 224 | (4) | (7,994 | ) | ||||||||||
Loans held for investment, net
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974,213 | 22,412 | 382 | 997,007 | ||||||||||||||
Accrued interest receivable
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4,126 | 1,907 | - | 6,033 | ||||||||||||||
Other real estate owned
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2,258 | - | - | 2,258 | ||||||||||||||
Premises and equipment
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8,575 | 80 | - | 8,655 | ||||||||||||||
Deferred income taxes
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6,887 | - | (3,918 | ) | (5) | 2,969 | ||||||||||||
Bank owned life insurance
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13,485 | 4,062 | - | 17,547 | ||||||||||||||
Intangible assets
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2,626 | - | 1,930 | (6) | 4,556 | |||||||||||||
Goodwill
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- | - | 11,854 | (7) | 11,854 | |||||||||||||
Other assets
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3,276 | 800 | 1,000 | (8) | 5,076 | |||||||||||||
TOTAL ASSETS
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$ | 1,173,792 | $ | 375,665 | $ | (78,246 | ) | $ | 1,471,211 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
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LIABILITIES:
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Deposit accounts:
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Noninterest bearing
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$ | 213,636 | $ | 86,625 | $ | - | $ | 300,261 | ||||||||||
Interest bearing:
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Transaction accounts
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329,925 | 212,587 | (49,006 | ) | (1) | 493,506 | ||||||||||||
Retail certificates of deposit
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361,207 | 20,575 | 81 | (9) | 381,863 | |||||||||||||
Wholesale/brokered certificates of deposit
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- | - | - | - | ||||||||||||||
Total deposits
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904,768 | 319,787 | (48,925 | ) | 1,175,630 | |||||||||||||
FHLB advances and other borrowings
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115,500 | 8,172 | - | 123,672 | ||||||||||||||
Subordinated debentures
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10,310 | - | - | 10,310 | ||||||||||||||
Accrued expenses and other liabilities
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8,697 | 1,481 | - | 10,178 | ||||||||||||||
TOTAL LIABILITIES
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1,039,275 | 329,440 | (48,925 | ) | 1,319,790 | |||||||||||||
COMMITMENTS AND CONTINGENCIES
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- | - | - | - | ||||||||||||||
STOCKHOLDERS’ EQUITY:
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Common stock, $.01 par value; 25,000,000 shares authorized; 13,661,648 shares at December 31, 2012 issued and outstanding
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137 | 9,901 | (9,901 | ) | (10) | 137 | ||||||||||||
Additional paid-in capital
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107,453 | 11,113 | 5,791 | (11) | 124,357 | |||||||||||||
Retained earnings
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25,822 | 19,264 | (19,264 | ) | (10) | 25,822 | ||||||||||||
Accumulated other comprehensive income, net of tax of $772 at December 31, 2012
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1,105 | 5,947 | (5,947 | ) | (10) | 1,105 | ||||||||||||
TOTAL STOCKHOLDERS’ EQUITY
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134,517 | 46,225 | (29,321 | ) | 151,421 | |||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
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$ | 1,173,792 | $ | 375,665 | $ | (78,246 | ) | $ | 1,471,211 |
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
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UNAUDITED PRO FORMA COMBINED CONSOLIDATED STATEMENT OF OPERATIONS
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(Dollars in thousands, except per share data)
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For the Year Ended December 31, 2012
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Pacific Premier
Bancorp, Inc.
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First Associations Bank
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Pro Forma Acquisition Adjustments
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Combined Pro forma
Pacific Premier
Bancorp, Inc.
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INTEREST INCOME
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Loans
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$ | 49,659 | $ | 972 | $ | (16 | ) | (12) | $ | 50,615 | ||||||||
Investment securities and other interest-earning assets
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3,288 | 8,403 | (628 | ) | (13) | 11,064 | ||||||||||||
Total interest income
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52,947 | 9,375 | (643 | ) | 61,679 | |||||||||||||
INTEREST EXPENSE
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Interest-bearing deposits:
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Interest on transaction accounts
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1,075 | 786 | (8 | ) | (13) | 1,853 | ||||||||||||
Interest on certificates of deposit
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4,778 | 200 | (41 | ) | (14) | 4,938 | ||||||||||||
Total interest-bearing deposits
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5,853 | 786 | (49 | ) | 6,591 | |||||||||||||
FHLB advances and other borrowings
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970 | 5 | - | 975 | ||||||||||||||
Subordinated debentures
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326 | - | - | 326 | ||||||||||||||
Total interest expense
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7,149 | 791 | (49 | ) | 7,892 | |||||||||||||
NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES
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45,798 | 8,584 | (595 | ) | 53,787 | |||||||||||||
PROVISION FOR LOAN LOSSES
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751 | (54 | ) | - | 697 | |||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
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45,047 | 8,638 | (595 | ) | 53,090 | |||||||||||||
NONINTEREST INCOME
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Loan servicing fees
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941 | - | - | 941 | ||||||||||||||
Deposit fees
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1,940 | 12 | - | 1,952 | ||||||||||||||
Net gain from sales of loans
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628 | - | - | 628 | ||||||||||||||
Net gain from sales of investment securities
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1,953 | 3,738 | - | 5,691 | ||||||||||||||
Other-than-temporary impairment loss on investment securities, net
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(159 | ) | - | - | (159 | ) | ||||||||||||
Gain on FDIC transaction
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5,340 | - | - | 5,340 | ||||||||||||||
Other income
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1,929 | 134 | - | 2,063 | ||||||||||||||
Total noninterest income
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12,572 | 3,884 | - | 16,456 | ||||||||||||||
NONINTEREST EXPENSE
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Compensation and benefits
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16,281 | 2,486 | - | 18,767 | ||||||||||||||
Premises and occupancy
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4,070 | 142 | - | 4,212 | ||||||||||||||
Data processing and communications
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2,366 | 234 | - | 2,600 | ||||||||||||||
Other real estate owned operations, net
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1,653 | - | - | 1,653 | ||||||||||||||
FDIC insurance premiums
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638 | 214 | - | 852 | ||||||||||||||
Legal and audit
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2,134 | 432 | - | 2,566 | ||||||||||||||
Marketing expense
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858 | 121 | - | 979 | ||||||||||||||
Office and postage expense
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830 | - | - | 830 | ||||||||||||||
Other expense
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3,024 | 2,572 | 349 | (15) | 5,945 | |||||||||||||
Total noninterest expense
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31,854 | 6,201 | 349 | 38,404 | ||||||||||||||
INCOME BEFORE INCOME TAX
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25,765 | 6,321 | (943 | ) | 31,143 | |||||||||||||
INCOME TAX
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9,989 | - | 1,042 | (16) | 11,031 | |||||||||||||
NET INCOME
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$ | 15,776 | $ | 6,321 | $ | (1,985 | ) | $ | 20,112 | |||||||||
EARNINGS PER SHARE
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Basic
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$ | 1.49 | $ | 3.19 | $ | 1.70 | ||||||||||||
Diluted
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$ | 1.44 | $ | 3.09 | $ | 1.64 | ||||||||||||
WEIGHTED AVERAGE SHARES OUTSTANDING
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Basic
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10,571,073 | 1,980,229 | (701,012 | ) | (17) | 11,850,290 | ||||||||||||
Diluted
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10,984,034 | 2,048,092 | (768,875 | ) | (17) | 12,263,251 |
1.
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Includes payments of the aggregate per share cash consideration in the amount of $37.2 million to FAB shareholders, $3.5 million to holders of FAB stock options and warrants and $2.3 million for non-compete payments and the elimination of $49.0 million of FAB deposits with Pacific Premier Bank.
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2.
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Adjustment made to reflect the estimated market value of investment securities.
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3.
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Adjustment made to reflect the estimated market value of loans held for investment, which includes an estimate of lifetime credit losses.
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4.
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Purchase accounting reversal of allowance for loan losses, which cannot be carried over.
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5.
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The net deferred tax liability resulting from the net deferred tax liability carried over from FAB due to its S-Corp status and the fair value adjustments related to the acquired assets and assumed liabilities.
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6.
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Purchase accounting adjustment in recognition of the fair value of core deposit intangible assets.
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7.
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Represents the recognition of goodwill resulting from the difference between the consideration paid to FAB shareholders less the net fair value of the acquired assets and assumed liabilities.
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8.
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Represents the fair market value of a non-compete agreement.
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9.
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Adjustment made to reflect the estimated market value of retail certificates of deposit.
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10.
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Purchase accounting reversal of common equity accounts.
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11.
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Adjustment to additional paid in capital includes consideration paid, transaction costs, fair market value adjustments, tax adjustments and goodwill created.
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12.
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The amortization/accretion of fair value adjustments related to loans over the estimated lives of the related asset. Interest income does not reflect revenue enhancement opportunities.
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13.
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The amortization/accretion of fair value adjustments related to investment securities over the estimated lives of the related asset and an adjustment made to reflect the elimination of FAB deposit income/Pacific Premier deposit expense for FAB deposits held with Pacific Premier Bank.
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14.
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The amortization of fair value adjustments related to the premium recorded on certificates of deposits based on their estimated lives.
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15.
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Amortization of core deposit intangibles over an eight year life. Acquisition costs for professional, legal and conversion related expenditures are not reflected herein, as they are nonrecurring expenses that will be expensed by Pacific Premier as required by GAAP. Noninterest expense does not reflect anticipated cost savings.
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16.
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Reflects the tax impact of income before income tax from FAB operations and of the pro forma transaction adjustments.
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17.
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Adjustment reflects the elimination of FAB's weighted average shares outstanding, offset by the issuance of 1,279,217 shares of Pacific Premier common stock issued in connection with the merger.
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