Date of Report (Date of earliest event reported) | October 19, 2016 | |||
PACIFIC PREMIER BANCORP, INC. | ||||
(Exact name of registrant as specified in its charter) | ||||
DELAWARE | 0-22193 | 33-0743196 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||
17901 Von Karman Avenue, Suite 1200, Irvine, CA | 92,614 | |||
(Address of principal executive offices) | (Zip Code) | |||
Registrant’s telephone number, including area code | (949) 864-8000 | |||
Not Applicable | ||||
(Former name or former address, if changed since last report.) | ||||
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): | ||||
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
99.1 | Press Release dated October 19, 2016 with respect to the Registrant's unaudited financial results for the third quarter and year-to-date ended September 30, 2016. |
PACIFIC PREMIER BANCORP, INC. | |||
Dated: | October 19, 2016 | By: | /s/ STEVE R. GARDNER |
Steve R. Gardner | |||
Chairman & Chief Executive Officer |
• | Diluted earnings per share of $0.33 and net income of $9.2 million |
• | Total loan growth of $169 million, or 23% annualized |
• | Non-performing assets to total assets of 0.17% |
• | Non-maturity deposit growth of $176 million, or 30% annualized |
• | Non-interest bearing deposits account for 37.9% of total deposits, highest in company history |
• | Total revenues increase to $45 million, or 28% annualized |
• | Core net interest margin of 4.18% |
• | ROAA and ROATCE of 1.00% and 11.52%, respectively |
• | Tangible book value per share increased $0.35 to $12.22 |
• | Efficiency ratio of 57% |
Three Months Ended | ||||||||||||
September 30, | June 30, | September 30, | ||||||||||
2016 | 2016 | 2015 | ||||||||||
Financial Highlights | (dollars in thousands, except per share data) | |||||||||||
Net income | $ | 9,227 | $ | 10,369 | $ | 7,837 | ||||||
Diluted EPS | $ | 0.33 | $ | 0.37 | $ | 0.36 | ||||||
Return on average assets | 1.00 | % | 1.17 | % | 1.19 | % | ||||||
Adjusted return on average assets (1)(2) | 1.00 | % | 1.20 | % | 1.25 | % | ||||||
Adjusted net income (1)(2) | $ | 9,227 | $ | 10,676 | $ | 8,237 | ||||||
Return on average tangible common equity (2) | 11.52 | % | 13.48 | % | 14.25 | % | ||||||
Adjusted return on average tangible common equity (1)(2) | 11.52 | % | 13.86 | % | 14.96 | % | ||||||
Net interest margin | 4.41 | % | 4.48 | % | 4.22 | % | ||||||
Cost of deposits | 0.28 | % | 0.28 | % | 0.32 | % | ||||||
Efficiency ratio (3) | 57.0 | % | 54.4 | % | 53.6 | % | ||||||
(1) Adjusted to exclude merger related, net of tax. | ||||||||||||
(2) A reconciliation of the non-GAAP measures of average tangible common equity to the GAAP measures of common stockholders' equity is set forth at the end of this press release. | ||||||||||||
(3) Represents the ratio of non-interest expense less other real estate owned operations, core deposit intangible amortization and non-recurring merger related to the sum of net interest income before provision for loan losses and total non-interest income, less gains/(loss) on sale of securities and other-than-temporary impairment recovery/(loss) on investment securities. |
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||
CONSOLIDATED AVERAGE BALANCES AND YIELD DATA | |||||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||
September 30, 2016 | June 30, 2016 | September 30, 2015 | |||||||||||||||||||||||||||||||
Average Balance | Interest | Average Yield/ Cost | Average Balance | Interest | Average Yield/ Cost | Average Balance | Interest | Average Yield/ Cost | |||||||||||||||||||||||||
Assets | (dollars in thousands) | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 201,140 | $ | 232 | 0.46 | % | $ | 177,603 | $ | 189 | 0.43 | % | $ | 124,182 | $ | 63 | 0.20 | % | |||||||||||||||
Investment securities | 316,253 | 1,710 | 2.16 | 299,049 | 1,650 | 2.21 | 306,623 | 1,749 | 2.28 | ||||||||||||||||||||||||
Loans receivable, net (1) | 2,998,153 | 40,487 | 5.37 | 2,892,236 | 39,035 | 5.43 | 2,080,281 | 27,935 | 5.33 | ||||||||||||||||||||||||
Total interest-earning assets | $ | 3,515,546 | $ | 42,429 | 4.80 | % | $ | 3,368,888 | $ | 40,874 | 4.88 | % | $ | 2,511,086 | $ | 29,747 | 4.70 | % | |||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
Interest-bearing deposits | $ | 1,921,741 | $ | 2,136 | 0.44 | % | $ | 1,864,253 | $ | 2,010 | 0.43 | % | $ | 1,464,577 | $ | 1,719 | 0.47 | % | |||||||||||||||
Borrowings | 167,531 | 1,284 | 3.05 | 170,065 | 1,303 | 3.08 | 190,408 | 1,332 | 2.77 | ||||||||||||||||||||||||
Total interest-bearing liabilities | $ | 2,089,272 | $ | 3,420 | 0.65 | % | $ | 2,034,318 | $ | 3,313 | 0.66 | % | $ | 1,654,985 | $ | 3,051 | 0.73 | % | |||||||||||||||
Non-interest bearing deposits | $ | 1,134,318 | $ | 1,060,097 | $ | 674,795 | |||||||||||||||||||||||||||
Net interest income | $ | 39,009 | $ | 37,561 | $ | 26,696 | |||||||||||||||||||||||||||
Net interest margin (2) | 4.41 | % | 4.48 | % | 4.22 | % | |||||||||||||||||||||||||||
(1) Average balance includes nonperforming loans and is net of deferred loan origination fees, unamortized discounts and premiums. | |||||||||||||||||||||||||||||||||
(2) Represents net interest income divided by average interest-earning assets. |
Three Months Ended | ||||||||||||
September 30, | June 30, | September 30, | ||||||||||
2016 | 2016 | 2015 | ||||||||||
NON-INTEREST INCOME | (dollars in thousands) | |||||||||||
Loan servicing fees | $ | 288 | $ | 257 | $ | 248 | ||||||
Deposit fees | 829 | 817 | 629 | |||||||||
Net gain from sales of loans | 3,122 | 2,124 | 2,544 | |||||||||
Net gain from sales of investment securities | 512 | 532 | 38 | |||||||||
Other-than-temporary-impairment recovery/(loss) on investment securities | 2 | — | — | |||||||||
Other income | 1,215 | 720 | 919 | |||||||||
Total non-interest income | $ | 5,968 | $ | 4,450 | $ | 4,378 |
Three Months Ended | ||||||||||||
September 30, | June 30, | September 30, | ||||||||||
2016 | 2016 | 2015 | ||||||||||
NON-INTEREST EXPENSE | (dollars in thousands) | |||||||||||
Compensation and benefits | $ | 14,179 | $ | 13,098 | $ | 9,066 | ||||||
Premises and occupancy | 2,633 | 2,559 | 2,120 | |||||||||
Data processing and communications | 1,223 | 887 | 681 | |||||||||
Other real estate owned operations, net | 5 | (15 | ) | 9 | ||||||||
FDIC insurance premiums | 442 | 401 | 355 | |||||||||
Legal, audit and professional expense | 676 | 446 | 505 | |||||||||
Marketing expense | 1,591 | 775 | 567 | |||||||||
Office and postage expense | 612 | 573 | 525 | |||||||||
Loan expense | 534 | 540 | 370 | |||||||||
Deposit expense | 1,315 | 1,196 | 917 | |||||||||
Merger related expense | — | 497 | 400 | |||||||||
CDI amortization | 525 | 645 | 344 | |||||||||
Other expense | 2,125 | 2,093 | 1,515 | |||||||||
Total non-interest expense | $ | 25,860 | $ | 23,695 | $ | 17,374 |
Three Months Ended | |||||||||
September 30, | June 30, | September 30, | |||||||
2016 | 2016 | 2015 | |||||||
Operating Metrics | |||||||||
Efficiency ratio (1) | 57.0 | % | 54.4 | % | 53.6 | % | |||
Non-interest expense to average total assets (2) | 2.74 | % | 2.59 | % | 2.58 | % | |||
Full-time equivalent employees, at period end | 448 | 438 | 332 | ||||||
(1) Represents the ratio of non-interest expense less other real estate owned operations, core deposit intangible amortization and non-recurring merger related to the sum of net interest income before provision for loan losses and total non-interest income less, gains/(loss) on sale of securities and other-than-temporary impairment recovery/(loss) on investment securities. | |||||||||
(2) Adjusted to exclude CDI amortization. |
Three Months Ended | ||||||||||||
September 30, | June 30, | September 30, | ||||||||||
2016 | 2016 | 2015 | ||||||||||
LOAN ACTIVITY | (dollars in thousands) | |||||||||||
Loans originated | $ | 322,405 | $ | 298,742 | $ | 248,815 | ||||||
Loans purchased | 85,395 | — | — | |||||||||
Repayments | (172,815 | ) | (190,026 | ) | (127,475 | ) | ||||||
Loans sold | (38,847 | ) | (22,746 | ) | (28,039 | ) | ||||||
Change in undisbursed | (31,915 | ) | (17,208 | ) | (45,085 | ) | ||||||
Other | 4,890 | 3,260 | 1,080 | |||||||||
Increase in total loans, gross | 169,113 | 72,022 | 49,296 | |||||||||
Change in allowance | (2,888 | ) | (500 | ) | (1,045 | ) | ||||||
Increase in total loans, net | $ | 166,225 | $ | 71,522 | $ | 48,251 |
September 30, | June 30, | September 30, | ||||||||||
2016 | 2016 | 2015 | ||||||||||
Loan Portfolio | (dollars in thousands) | |||||||||||
Business loans: | ||||||||||||
Commercial and industrial | $ | 537,809 | $ | 508,141 | $ | 288,982 | ||||||
Franchise | 431,618 | 403,855 | 295,965 | |||||||||
Commercial owner occupied | 460,068 | 443,060 | 302,556 | |||||||||
SBA | 92,195 | 86,076 | 70,191 | |||||||||
Warehouse facilities | — | — | 144,274 | |||||||||
Real estate loans: | ||||||||||||
Commercial non-owner occupied | 527,412 | 526,362 | 406,490 | |||||||||
Multi-family | 689,813 | 613,573 | 421,240 | |||||||||
One-to-four family | 101,377 | 106,538 | 78,781 | |||||||||
Construction | 231,098 | 215,786 | 141,293 | |||||||||
Land | 18,472 | 18,341 | 12,758 | |||||||||
Other loans | 5,678 | 5,822 | 5,017 | |||||||||
Total Gross Loans | 3,095,540 | 2,927,554 | 2,167,547 | |||||||||
Less Loans held for sale, net | 9,009 | 10,116 | — | |||||||||
Total gross loans held for investment | 3,086,531 | 2,917,438 | 2,167,547 | |||||||||
Less: | ||||||||||||
Deferred loan origination costs/(fees) and premiums/(discounts) | 4,308 | 3,181 | 309 | |||||||||
Allowance for loan losses | (21,843 | ) | (18,955 | ) | (16,145 | ) | ||||||
Loans held for investment, net | $ | 3,068,996 | $ | 2,901,664 | $ | 2,151,711 |
September 30, | June 30, | September 30, | ||||||||||
2016 | 2016 | 2015 | ||||||||||
Asset Quality | (dollars in thousands) | |||||||||||
Non-accrual loans | $ | 5,734 | $ | 4,062 | $ | 4,095 | ||||||
Other real estate owned | 711 | 711 | 711 | |||||||||
Non-performing assets | $ | 6,445 | $ | 4,773 | $ | 4,806 | ||||||
Allowance for loan losses | $ | 21,843 | $ | 18,955 | $ | 16,145 | ||||||
Allowance for loan losses as a percent of total non-performing loans | 381 | % | 467 | % | 394 | % | ||||||
Non-performing loans as a percent of gross loans | 0.18 | % | 0.14 | % | 0.19 | % | ||||||
Non-performing assets as a percent of total assets | 0.17 | % | 0.13 | % | 0.18 | % | ||||||
Net loan charge-offs (recoveries) for the quarter ended | $ | 1,125 | $ | 1,089 | $ | 17 | ||||||
Net loan charge-offs for quarter to average total loans, net | 0.04 | % | 0.04 | % | — | % | ||||||
Allowance for loan losses to gross loans | 0.70 | % | 0.65 | % | 0.74 | % | ||||||
Delinquent Loans: | ||||||||||||
30 - 59 days | $ | 1,042 | $ | 1,144 | $ | 702 | ||||||
60 - 89 days | 1,990 | 2,487 | 25 | |||||||||
90+ days | 2,646 | 1,797 | 2,214 | |||||||||
Total delinquency | $ | 5,678 | $ | 5,428 | $ | 2,941 | ||||||
Delinquency as a % of total gross loans | 0.18 | % | 0.19 | % | 0.14 | % |
Estimated Fair Value | ||||||||||||
September 30, | June 30, | September 30, | ||||||||||
2016 | 2016 | 2015 | ||||||||||
Investment securities available for sale: | (dollars in thousands) | |||||||||||
Corporate | $ | 23,330 | $ | — | $ | — | ||||||
Municipal bonds | 116,838 | 118,799 | 130,004 | |||||||||
Collateralized mortgage obligation | 33,866 | 22,844 | — | |||||||||
Mortgage-backed securities | 139,166 | 103,828 | 161,143 | |||||||||
Total securities available for sale | $ | 313,200 | $ | 245,471 | $ | 291,147 | ||||||
Investments held to maturity | $ | 9,004 | $ | 9,390 | $ | — |
September 30, | June 30, | September 30, | ||||||||||
2016 | 2016 | 2015 | ||||||||||
Deposit Accounts | (dollars in thousands) | |||||||||||
Non-interest bearing checking | $ | 1,160,394 | $ | 1,043,361 | $ | 680,937 | ||||||
Interest-bearing: | ||||||||||||
Checking | 170,057 | 168,669 | 130,671 | |||||||||
Money market/Savings | 1,157,086 | 1,099,445 | 822,876 | |||||||||
Retail certificates of deposit | 384,083 | 420,673 | 383,481 | |||||||||
Wholesale/brokered certificates of deposit | 188,132 | 198,853 | 121,242 | |||||||||
Total interest-bearing | 1,899,358 | 1,887,640 | 1,458,270 | |||||||||
Total deposits | $ | 3,059,752 | $ | 2,931,001 | $ | 2,139,207 | ||||||
Deposit Mix (% of total deposits) | ||||||||||||
Non-interest bearing deposits | 37.9 | % | 35.6 | % | 31.8 | % | ||||||
Non-maturity deposits | 81.3 | % | 78.9 | % | 76.4 | % |
September 30, 2016 | June 30, 2016 | September 30, 2015 | ||||||||||||||||||
Balance | Weighted Average Rate | Balance | Weighted Average Rate | Balance | Weighted Average Rate | |||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
FHLB advances | $ | 90,000 | 0.38 | % | $ | 75,000 | 0.59 | % | $ | 144,000 | 0.38 | % | ||||||||
Reverse repurchase agreements | 46,247 | 2.01 | % | 45,252 | 2.07 | % | 47,483 | 1.97 | % | |||||||||||
Subordinated debentures | 69,353 | 5.35 | % | 70,310 | 5.35 | % | 70,310 | 5.35 | % | |||||||||||
Total borrowings | $ | 205,600 | 2.44 | % | $ | 190,562 | 2.65 | % | $ | 261,793 | 2.00 | % | ||||||||
Weighted average cost of borrowings during the quarter | 3.05 | % | 3.08 | % | 2.77 | % | ||||||||||||||
Borrowings as a percent of total assets | 5.48 | % | 5.30 | % | 9.60 | % |
September 30, | June 30, | September 30, | ||||||||||
2016 | 2016 | 2015 | ||||||||||
Capital Ratios | ||||||||||||
Pacific Premier Bank | ||||||||||||
Tier 1 leverage ratio | 11.03 | % | 11.17 | % | 11.44 | % | ||||||
Common equity tier 1 risk-based capital ratio | 12.07 | % | 12.32 | % | 12.54 | % | ||||||
Tier 1 risk-based capital ratio | 12.07 | % | 12.32 | % | 12.54 | % | ||||||
Total risk-based capital ratio | 12.77 | % | 12.94 | % | 13.25 | % | ||||||
Pacific Premier Bancorp, Inc. | ||||||||||||
Tier 1 leverage ratio | 9.80 | % | 9.88 | % | 9.50 | % | ||||||
Common equity tier 1 risk-based capital ratio | 10.42 | % | 10.58 | % | 10.02 | % | ||||||
Tier 1 risk-based capital ratio | 10.72 | % | 10.90 | % | 10.40 | % | ||||||
Total risk-based capital ratio | 13.21 | % | 13.45 | % | 13.65 | % | ||||||
Tangible common equity ratio | 9.28 | % | 9.41 | % | 8.75 | % | ||||||
Share Data | ||||||||||||
Book value per share | $ | 16.27 | $ | 15.94 | $ | 13.52 | ||||||
Tangible book value per share | $ | 12.22 | $ | 11.87 | $ | 10.80 | ||||||
Closing stock price | $ | 26.46 | $ | 24.00 | $ | 20.32 | ||||||
Outstanding shares at period end | 27,656,533 | 27,650,533 | 21,510,678 |
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
ASSETS | 2016 | 2016 | 2016 | 2015 | 2015 | |||||||||||||||
Cash and due from banks | $ | 18,557 | $ | 15,444 | $ | 18,624 | $ | 14,935 | $ | 102,235 | ||||||||||
Interest-bearing deposits with financial institutions | 85,347 | 169,855 | 174,890 | 63,482 | 526 | |||||||||||||||
Cash and cash equivalents | 103,904 | 185,299 | 193,514 | 78,417 | 102,761 | |||||||||||||||
Interest-bearing time deposits with financial institutions | 3,944 | 3,944 | 3,944 | 1,972 | — | |||||||||||||||
Investments held to maturity, at amortized cost | 8,900 | 9,292 | 9,590 | 9,642 | — | |||||||||||||||
Investment securities available for sale, at fair value | 313,200 | 245,471 | 269,711 | 280,273 | 291,147 | |||||||||||||||
FHLB, FRB and other stock, at cost | 29,966 | 26,984 | 27,103 | 22,292 | 22,490 | |||||||||||||||
Loans held for sale, at lower of cost or fair value | 9,009 | 10,116 | 7,281 | 8,565 | — | |||||||||||||||
Loans held for investment | 3,090,839 | 2,920,619 | 2,851,432 | 2,254,315 | 2,167,856 | |||||||||||||||
Allowance for loan losses | (21,843 | ) | (18,955 | ) | (18,455 | ) | (17,317 | ) | (16,145 | ) | ||||||||||
Loans held for investment, net | 3,068,996 | 2,901,664 | 2,832,977 | 2,236,998 | 2,151,711 | |||||||||||||||
Accrued interest receivable | 11,642 | 12,143 | 11,862 | 9,315 | 9,083 | |||||||||||||||
Other real estate owned | 711 | 711 | 1,161 | 1,161 | 711 | |||||||||||||||
Premises and equipment | 11,314 | 11,014 | 11,963 | 9,248 | 9,044 | |||||||||||||||
Deferred income taxes, net | 20,001 | 16,552 | 17,000 | 11,511 | 13,059 | |||||||||||||||
Bank owned life insurance | 40,116 | 39,824 | 39,535 | 39,245 | 38,953 | |||||||||||||||
Intangible assets | 9,976 | 10,500 | 11,145 | 7,170 | 7,514 | |||||||||||||||
Goodwill | 101,939 | 101,939 | 101,939 | 50,832 | 50,832 | |||||||||||||||
Other assets | 21,213 | 23,200 | 24,360 | 24,005 | 17,993 | |||||||||||||||
TOTAL ASSETS | $ | 3,754,831 | $ | 3,598,653 | $ | 3,563,085 | $ | 2,790,646 | $ | 2,715,298 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
LIABILITIES: | ||||||||||||||||||||
Deposit accounts: | ||||||||||||||||||||
Non-interest-bearing checking | $ | 1,160,394 | $ | 1,043,361 | $ | 1,064,457 | $ | 711,771 | $ | 680,937 | ||||||||||
Interest-bearing: | ||||||||||||||||||||
Checking | 170,057 | 168,669 | 160,707 | 134,999 | 130,671 | |||||||||||||||
Money market/savings | 1,157,086 | 1,099,445 | 1,096,334 | 827,378 | 822,876 | |||||||||||||||
Retail certificates of deposit | 384,083 | 420,673 | 455,637 | 365,911 | 383,481 | |||||||||||||||
Wholesale/brokered certificates of deposit | 188,132 | 198,853 | 129,129 | 155,064 | 121,242 | |||||||||||||||
Total interest-bearing | 1,899,358 | 1,887,640 | 1,841,807 | 1,483,352 | 1,458,270 | |||||||||||||||
Total deposits | 3,059,752 | 2,931,001 | 2,906,264 | 2,195,123 | 2,139,207 | |||||||||||||||
FHLB advances and other borrowings | 136,213 | 120,252 | 124,956 | 196,125 | 191,483 | |||||||||||||||
Subordinated debentures | 69,353 | 70,310 | 70,310 | 70,310 | 70,310 | |||||||||||||||
Accrued expenses and other liabilities | 39,548 | 36,460 | 32,661 | 30,108 | 23,531 | |||||||||||||||
TOTAL LIABILITIES | 3,304,866 | 3,158,023 | 3,134,191 | 2,491,666 | 2,424,531 | |||||||||||||||
STOCKHOLDERS’ EQUITY: | ||||||||||||||||||||
Preferred stock | — | — | — | — | — | |||||||||||||||
Common stock | 273 | 273 | 273 | 215 | 215 | |||||||||||||||
Additional paid-in capital | 343,233 | 342,388 | 341,660 | 221,487 | 220,992 | |||||||||||||||
Retained earnings | 105,096 | 95,869 | 85,500 | 76,946 | 68,881 | |||||||||||||||
Accumulated other comprehensive income, net of tax | 1,363 | 2,100 | 1,461 | 332 | 679 | |||||||||||||||
TOTAL STOCKHOLDERS’ EQUITY | 449,965 | 440,630 | 428,894 | 298,980 | 290,767 | |||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 3,754,831 | $ | 3,598,653 | $ | 3,563,085 | $ | 2,790,646 | $ | 2,715,298 |
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, | ||||||||||||||||
2016 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||
INTEREST INCOME | ||||||||||||||||||||
Loans | $ | 40,487 | $ | 39,035 | $ | 27,935 | $ | 114,929 | $ | 80,917 | ||||||||||
Investment securities and other interest-earning assets | 1,942 | 1,839 | 1,812 | 5,879 | 5,527 | |||||||||||||||
Total interest income | 42,429 | 40,874 | 29,747 | 120,808 | 86,444 | |||||||||||||||
INTEREST EXPENSE | ||||||||||||||||||||
Deposits | 2,136 | 2,010 | 1,719 | 6,215 | 4,914 | |||||||||||||||
FHLB advances and other borrowings | 314 | 324 | 339 | 963 | 1,121 | |||||||||||||||
Subordinated debentures | 970 | 979 | 993 | 2,859 | 2,946 | |||||||||||||||
Total interest expense | 3,420 | 3,313 | 3,051 | 10,037 | 8,981 | |||||||||||||||
NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES | 39,009 | 37,561 | 26,696 | 110,771 | 77,463 | |||||||||||||||
PROVISION FOR LOAN LOSSES | 4,013 | 1,589 | 1,062 | 6,722 | 4,725 | |||||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 34,996 | 35,972 | 25,634 | 104,049 | 72,738 | |||||||||||||||
NON-INTEREST INCOME | ||||||||||||||||||||
Loan servicing fees | 288 | 257 | 248 | 769 | 156 | |||||||||||||||
Deposit fees | 829 | 817 | 629 | 2,488 | 1,845 | |||||||||||||||
Net gain from sales of loans | 3,122 | 2,124 | 2,544 | 7,152 | 5,265 | |||||||||||||||
Net gain from sales of investment securities | 512 | 532 | 38 | 1,797 | 293 | |||||||||||||||
Other-than-temporary-impairment recovery/(loss) on investment securities | 2 | — | — | (205 | ) | — | ||||||||||||||
Other income | 1,215 | 720 | 919 | 3,279 | 2,669 | |||||||||||||||
Total non-interest income | 5,968 | 4,450 | 4,378 | 15,280 | 10,228 | |||||||||||||||
NON-INTEREST EXPENSE | ||||||||||||||||||||
Compensation and benefits | 14,179 | 13,098 | 9,066 | 39,017 | 27,439 | |||||||||||||||
Premises and occupancy | 2,633 | 2,559 | 2,120 | 7,550 | 5,980 | |||||||||||||||
Data processing and communications | 1,223 | 887 | 681 | 3,021 | 2,099 | |||||||||||||||
Other real estate owned operations, net | 5 | (15 | ) | 9 | (2 | ) | 113 | |||||||||||||
FDIC insurance premiums | 442 | 401 | 355 | 1,225 | 1,032 | |||||||||||||||
Legal, audit and professional expense | 676 | 446 | 505 | 1,987 | 1,687 | |||||||||||||||
Marketing expense | 1,591 | 775 | 567 | 2,996 | 1,785 | |||||||||||||||
Office and postage expense | 612 | 573 | 525 | 1,666 | 1,529 | |||||||||||||||
Loan expense | 534 | 540 | 370 | 1,477 | 826 | |||||||||||||||
Deposit expense | 1,315 | 1,196 | 917 | 3,530 | 2,704 | |||||||||||||||
Merger related expense | — | 497 | 400 | 3,616 | 4,392 | |||||||||||||||
CDI amortization | 525 | 645 | 344 | 1,514 | 1,002 | |||||||||||||||
Other expense | 2,125 | 2,093 | 1,515 | 5,603 | 4,469 | |||||||||||||||
Total non-interest expense | 25,860 | 23,695 | 17,374 | 73,200 | 55,057 | |||||||||||||||
NET INCOME BEFORE INCOME TAX | 15,104 | 16,727 | 12,638 | 46,129 | 27,909 | |||||||||||||||
INCOME TAX | 5,877 | 6,358 | 4,801 | 17,977 | 10,459 | |||||||||||||||
NET INCOME | $ | 9,227 | $ | 10,369 | $ | 7,837 | $ | 28,152 | $ | 17,450 | ||||||||||
EARNINGS PER SHARE | ||||||||||||||||||||
Basic | $ | 0.34 | $ | 0.38 | $ | 0.36 | $ | 1.05 | $ | 0.83 | ||||||||||
Diluted | $ | 0.33 | $ | 0.37 | $ | 0.36 | $ | 1.03 | $ | 0.82 | ||||||||||
WEIGHTED AVERAGE SHARES OUTSTANDING | ||||||||||||||||||||
Basic | 27,387,123 | 27,378,930 | 21,510,678 | 26,776,140 | 21,037,345 |
Diluted | 27,925,351 | 27,845,490 | 21,866,840 | 27,245,108 | 21,342,204 |
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||
CONSOLIDATED AVERAGE BALANCES AND YIELD DATA | |||||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||
September 30, 2016 | June 30, 2016 | September 30, 2015 | |||||||||||||||||||||||||||||||
Average Balance | Interest | Average Yield/Cost | Average Balance | Interest | Average Yield/Cost | Average Balance | Interest | Average Yield/Cost | |||||||||||||||||||||||||
Assets | (dollars in thousands) | ||||||||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 201,140 | $ | 232 | 0.46 | % | $ | 177,603 | $ | 189 | 0.43 | % | $ | 124,182 | $ | 63 | 0.20 | % | |||||||||||||||
Investment securities | 316,253 | 1,710 | 2.16 | 299,049 | 1,650 | 2.21 | 306,623 | 1,749 | 2.28 | ||||||||||||||||||||||||
Loans receivable, net (1) | 2,998,153 | 40,487 | 5.37 | 2,892,236 | 39,035 | 5.43 | 2,080,281 | 27,935 | 5.33 | ||||||||||||||||||||||||
Total interest-earning assets | 3,515,546 | 42,429 | 4.80 | % | 3,368,888 | 40,874 | 4.88 | % | 2,511,086 | 29,747 | 4.70 | % | |||||||||||||||||||||
Non-interest-earning assets | 186,778 | 190,838 | 125,615 | ||||||||||||||||||||||||||||||
Total assets | $ | 3,702,324 | $ | 3,559,726 | $ | 2,636,701 | |||||||||||||||||||||||||||
Liabilities and Equity | |||||||||||||||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||||||||||||||
Interest checking | $ | 185,344 | $ | 53 | 0.11 | % | $ | 178,258 | $ | 50 | 0.11 | % | $ | 141,747 | $ | 40 | 0.11 | % | |||||||||||||||
Money market | 1,036,350 | 923 | 0.35 | 980,806 | 896 | 0.37 | 708,365 | 616 | 0.35 | ||||||||||||||||||||||||
Savings | 98,496 | 38 | 0.15 | 98,419 | 38 | 0.16 | 91,455 | 37 | 0.16 | ||||||||||||||||||||||||
Time | 601,551 | 1,122 | 0.74 | 606,770 | 1,026 | 0.68 | 523,010 | 1,026 | 0.78 | ||||||||||||||||||||||||
Total interest-bearing deposits | 1,921,741 | 2,136 | 0.44 | % | 1,864,253 | 2,010 | 0.43 | % | 1,464,577 | 1,719 | 0.47 | % | |||||||||||||||||||||
FHLB advances and other borrowings | 97,547 | 314 | 1.28 | 99,755 | 324 | 1.31 | 120,098 | 339 | 1.12 | ||||||||||||||||||||||||
Subordinated debentures | 69,984 | 970 | 5.54 | 70,310 | 979 | 5.57 | 70,310 | 993 | 5.65 | ||||||||||||||||||||||||
Total borrowings | 167,531 | 1,284 | 3.05 | % | 170,065 | 1,303 | 3.08 | % | 190,408 | 1,332 | 2.77 | % | |||||||||||||||||||||
Total interest-bearing liabilities | 2,089,272 | 3,420 | 0.65 | % | 2,034,318 | 3,313 | 0.66 | % | 1,654,985 | 3,051 | 0.73 | % | |||||||||||||||||||||
Non-interest-bearing deposits | 1,134,318 | 1,060,097 | 674,795 | ||||||||||||||||||||||||||||||
Other liabilities | 35,019 | 32,969 | 22,435 | ||||||||||||||||||||||||||||||
Total liabilities | 3,258,609 | 3,127,384 | 2,352,215 | ||||||||||||||||||||||||||||||
Stockholders' equity | 443,715 | 432,342 | 284,486 | ||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 3,702,324 | $ | 3,559,726 | $ | 2,636,701 | |||||||||||||||||||||||||||
Net interest income | $ | 39,009 | $ | 37,561 | $ | 26,696 | |||||||||||||||||||||||||||
Net interest margin (2) | 4.41 | % | 4.48 | % | 4.22 | % | |||||||||||||||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities | 168.27 | % | 165.60 | % | 151.73 | % | |||||||||||||||||||||||||||
(1) Average balance includes nonperforming loans and is net of deferred loan origination fees, unamortized discounts and premiums. | |||||||||||||||||||||||||||||||||
(2) Represents net interest income divided by average interest-earning assets. |
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||
LOAN PORTFOLIO COMPOSITION | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
2016 | 2016 | 2016 | 2015 | 2015 | ||||||||||||||||
Loan Portfolio | ||||||||||||||||||||
Business loans: | ||||||||||||||||||||
Commercial and industrial | $ | 537,809 | $ | 508,141 | $ | 491,112 | $ | 309,741 | $ | 288,982 | ||||||||||
Franchise | 431,618 | 403,855 | 371,875 | 328,925 | 295,965 | |||||||||||||||
Commercial owner occupied | 460,068 | 443,060 | 424,289 | 294,726 | 302,556 | |||||||||||||||
SBA | 92,195 | 86,076 | 78,350 | 62,256 | 70,191 | |||||||||||||||
Warehouse facilities | — | — | 1,394 | 143,200 | 144,274 | |||||||||||||||
Real estate loans: | ||||||||||||||||||||
Commercial non-owner occupied | 527,412 | 526,362 | 522,080 | 421,583 | 406,490 | |||||||||||||||
Multi-family | 689,813 | 613,573 | 619,485 | 429,003 | 421,240 | |||||||||||||||
One-to-four family | 101,377 | 106,538 | 106,854 | 80,050 | 78,781 | |||||||||||||||
Construction | 231,098 | 215,786 | 218,069 | 169,748 | 141,293 | |||||||||||||||
Land | 18,472 | 18,341 | 18,222 | 18,340 | 12,758 | |||||||||||||||
Other loans | 5,678 | 5,822 | 6,045 | 5,111 | 5,017 | |||||||||||||||
Total gross loans | 3,095,540 | 2,927,554 | 2,857,775 | 2,262,683 | 2,167,547 | |||||||||||||||
Less loans held for sale, net | 9,009 | 10,116 | 7,281 | 8,565 | — | |||||||||||||||
Total gross loans held for investment | 3,086,531 | 2,917,438 | 2,850,494 | 2,254,118 | 2,167,547 | |||||||||||||||
Plus (less): | ||||||||||||||||||||
Deferred loan origination costs and premiums, net | 4,308 | 3,181 | 938 | 197 | 309 | |||||||||||||||
Allowance for loan losses | (21,843 | ) | (18,955 | ) | (18,455 | ) | (17,317 | ) | (16,145 | ) | ||||||||||
Loans held for investment, net | $ | 3,068,996 | $ | 2,901,664 | $ | 2,832,977 | $ | 2,236,998 | $ | 2,151,711 |
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||
ASSET QUALITY INFORMATION | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
2016 | 2016 | 2016 | 2015 | 2015 | ||||||||||||||||
Asset Quality | ||||||||||||||||||||
Nonaccrual loans | $ | 5,734 | $ | 4,062 | $ | 4,823 | $ | 3,970 | $ | 4,095 | ||||||||||
Other real estate owned | 711 | 711 | 1,161 | 1,161 | 711 | |||||||||||||||
Nonperforming assets | $ | 6,445 | $ | 4,773 | $ | 5,984 | $ | 5,131 | $ | 4,806 | ||||||||||
Allowance for loan losses | $ | 21,843 | $ | 18,955 | $ | 18,455 | $ | 17,317 | $ | 16,145 | ||||||||||
Allowance for loan losses as a percent of total nonperforming loans | 381 | % | 467 | % | 383 | % | 436 | % | 394 | % | ||||||||||
Nonperforming loans as a percent of gross loans | 0.18 | % | 0.14 | % | 0.17 | % | 0.18 | % | 0.19 | % | ||||||||||
Nonperforming assets as a percent of total assets | 0.17 | % | 0.13 | % | 0.17 | % | 0.18 | % | 0.18 | % | ||||||||||
Net loan charge-offs for the quarter ended | $ | 1,125 | $ | 1,089 | $ | (18 | ) | $ | 528 | $ | 17 | |||||||||
Net loan charge-offs for quarter to average total loans, net | 0.04 | % | 0.04 | % | — | % | 0.02 | % | — | % | ||||||||||
Allowance for loan losses to gross loans | 0.70 | % | 0.65 | % | 0.65 | % | 0.77 | % | 0.74 | % | ||||||||||
Delinquent Loans: | ||||||||||||||||||||
30 - 59 days | $ | 1,042 | $ | 1,144 | $ | 247 | $ | 323 | $ | 702 | ||||||||||
60 - 89 days | 1,990 | 2,487 | — | 355 | 25 | |||||||||||||||
90+ days | 2,646 | 1,797 | 3,199 | 1,954 | 2,214 | |||||||||||||||
Total delinquency | $ | 5,678 | $ | 5,428 | $ | 3,446 | $ | 2,632 | $ | 2,941 | ||||||||||
Delinquency as a % of total gross loans | 0.18 | % | 0.19 | % | 0.12 | % | 0.12 | % | 0.14 | % |
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||
DEPOSIT COMPOSITION | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
2016 | 2016 | 2016 | 2015 | 2015 | ||||||||||||||||
Deposit Accounts | ||||||||||||||||||||
Non-interest bearing checking | $ | 1,160,394 | $ | 1,043,361 | $ | 1,064,457 | $ | 711,771 | $ | 680,937 | ||||||||||
Interest-bearing: | ||||||||||||||||||||
Checking | 170,057 | 168,669 | 160,707 | 134,999 | 130,671 | |||||||||||||||
Money market/savings | 1,157,086 | 1,099,445 | 1,096,334 | 827,378 | 822,876 | |||||||||||||||
Retail certificates of deposit | 384,083 | 420,673 | 455,637 | 365,911 | 383,481 | |||||||||||||||
Wholesale/brokered certificates of deposit | 188,132 | 198,853 | 129,129 | 155,064 | 121,242 | |||||||||||||||
Total interest-bearing | 1,899,358 | 1,887,640 | 1,841,807 | 1,483,352 | 1,458,270 | |||||||||||||||
Total deposits | $ | 3,059,752 | $ | 2,931,001 | $ | 2,906,264 | $ | 2,195,123 | $ | 2,139,207 | ||||||||||
Deposit Mix (% of total deposits) | ||||||||||||||||||||
Non-interest bearing deposits | 37.9 | % | 35.6 | % | 36.6 | % | 32.4 | % | 31.8 | % | ||||||||||
Non-maturity deposits | 81.3 | % | 78.9 | % | 79.9 | % | 76.3 | % | 76.4 | % |
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES | ||||||||||||
GAAP RECONCILIATIONS | ||||||||||||
(dollars in thousands, except per share data) | ||||||||||||
GAAP Reconciliations | ||||||||||||
For periods presented below, adjusted net income, adjusted diluted earnings per share and adjusted return on average assets are non-GAAP financial measures derived from GAAP-based amounts. We calculate these figures by excluding merger related expenses in the period results. Management believes that the exclusion of such items from these financial measures provides useful information to an understanding of the operating results of our core business. 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. | ||||||||||||
Three Months Ended | ||||||||||||
September 30, | June 30, | September 30, | ||||||||||
2016 | 2016 | 2015 | ||||||||||
Net income | $ | 9,227 | $ | 10,369 | $ | 7,837 | ||||||
Plus merger related expenses, net of tax | — | 497 | 400 | |||||||||
Less merger related expenses tax adjustment | — | (190 | ) | — | ||||||||
Adjusted net income | $ | 9,227 | $ | 10,676 | $ | 8,237 | ||||||
Diluted earnings per share | $ | 0.33 | $ | 0.37 | $ | 0.36 | ||||||
Plus merger related expenses, net of tax | — | 0.01 | 0.02 | |||||||||
Adjusted diluted earnings per share | $ | 0.33 | $ | 0.38 | $ | 0.38 | ||||||
Return on average assets | 1.00 | % | 1.17 | % | 1.19 | % | ||||||
Plus merger related expenses, net of tax | — | % | 0.03 | % | 0.06 | % | ||||||
Adjusted return on average assets | 1.00 | % | 1.20 | % | 1.25 | % | ||||||
For periods presented below, return on average tangible common equity and adjusted return on average tangible common equity are non-GAAP financial measures derived from GAAP-based amounts. We calculate these figures by excluding merger related expenses and/or CDI amortization expense and exclude the average CDI and average goodwill from the average stockholders' equity during the period. Management believes that the exclusion of such items from these financial measures provides useful information to an understanding of the operating results of our core business. 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. | ||||||||||||
Three Months Ended | ||||||||||||
September 30, | June 30, | September 30, | ||||||||||
2016 | 2016 | 2015 | ||||||||||
Net income | $ | 9,227 | $ | 10,369 | $ | 7,837 | ||||||
Plus tax effected CDI amortization | 525 | 645 | 344 | |||||||||
Less CDI amortization expense tax adjustment | (204 | ) | (245 | ) | (131 | ) | ||||||
Net income for average tangible common equity | $ | 9,548 | $ | 10,769 | $ | 8,050 | ||||||
Plus merger related expenses, net of tax | — | 497 | 400 | |||||||||
Less merger related expenses tax adjustment | — | (190 | ) | — | ||||||||
Adjusted net income for average tangible common equity | $ | 9,548 | $ | 11,076 | $ | 8,450 | ||||||
Average stockholders' equity | $ | 443,715 | $ | 432,342 | $ | 284,486 | ||||||
Less average CDI | 10,318 | 10,876 | 7,686 | |||||||||
Less average goodwill | 101,939 | 101,923 | 50,832 | |||||||||
Average tangible common equity | $ | 331,458 | $ | 319,543 | $ | 225,968 | ||||||
Return on average tangible common equity | 11.52 | % | 13.48 | % | 14.25 | % | ||||||
Adjusted return on average tangible common equity | 11.52 | % | 13.86 | % | 14.96 | % |
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 stockholders' 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 stockholders' 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, | ||||||||||||||||
2016 | 2016 | 2016 | 2015 | 2015 | ||||||||||||||||
Total stockholders' equity | $ | 449,965 | $ | 440,630 | $ | 428,894 | $ | 298,980 | $ | 290,767 | ||||||||||
Less intangible assets | (111,915 | ) | (112,439 | ) | (113,230 | ) | (58,002 | ) | (58,346 | ) | ||||||||||
Tangible common equity | $ | 338,050 | $ | 328,191 | $ | 315,664 | $ | 240,978 | $ | 232,421 | ||||||||||
Book value per share | $ | 16.27 | $ | 15.94 | $ | 15.58 | $ | 13.86 | $ | 13.52 | ||||||||||
Less intangible book value per share | (4.05 | ) | (4.07 | ) | (4.12 | ) | (2.69 | ) | (2.72 | ) | ||||||||||
Tangible book value per share | $ | 12.22 | $ | 11.87 | $ | 11.46 | $ | 11.17 | $ | 10.80 | ||||||||||
Total assets | $ | 3,754,831 | $ | 3,598,653 | $ | 3,563,085 | $ | 2,790,646 | $ | 2,715,298 | ||||||||||
Less intangible assets | (111,915 | ) | (112,439 | ) | (113,230 | ) | (58,002 | ) | (58,346 | ) | ||||||||||
Tangible assets | $ | 3,642,916 | $ | 3,486,214 | $ | 3,449,855 | $ | 2,732,644 | $ | 2,656,952 | ||||||||||
Tangible common equity ratio | 9.28 | % | 9.41 | % | 9.15 | % | 8.82 | % | 8.75 | % |