Date of Report (Date of earliest event reported) | April 25, 2017 | |||
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 April 25, 2017 with respect to the Registrant's unaudited financial results for the first quarter and year-to-date ended March 31, 2017. |
PACIFIC PREMIER BANCORP, INC. | |||
Dated: | April 25, 2017 | By: | /s/ STEVEN R. GARDNER |
Steven R. Gardner | |||
Chairman, President & Chief Executive Officer |
• | Diluted earnings per share of $0.34 and net income of $9.5 million |
• | First quarter results include $4.9 million of merger-related expenses |
• | ROAA and ROATCE of 0.94% and 11.03%, respectively |
• | Total loan growth of $147 million, 18% annualized |
• | Non-maturity deposits growth of $127 million, 20% annualized |
• | Noninterest-bearing deposits account for 37% of total deposits |
• | Efficiency ratio of 52% |
• | Nonperforming assets to total assets of 0.02%, delinquencies to total loans of 0.01% |
• | Closed acquisition of Heritage Oaks Bancorp effective April 1, 2017 |
• | Pro forma assets of $6.0 billion with impact of Heritage Oaks acquisition |
Three Months Ended | ||||||||||||
March 31, | December 31, | March 31, | ||||||||||
2017 | 2016 | 2016 | ||||||||||
Financial Highlights | (dollars in thousands, except per share data) | |||||||||||
Net income | $ | 9,521 | $ | 11,953 | $ | 8,554 | ||||||
Diluted earnings per share | $ | 0.34 | $ | 0.43 | $ | 0.33 | ||||||
Return on average assets | 0.94 | % | 1.24 | % | 1.05 | % | ||||||
Return on average tangible common equity (1) | 11.03 | % | 14.17 | % | 12.31 | % | ||||||
Net interest margin | 4.39 | % | 4.59 | % | 4.43 | % | ||||||
Cost of deposits | 0.27 | % | 0.27 | % | 0.31 | % | ||||||
Efficiency ratio (2) | 52.3 | % | 50.9 | % | 52.4 | % | ||||||
(1) 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. | ||||||||||||
(2) Represents the ratio of noninterest expense less other real estate owned operations, core deposit intangible amortization and merger-related costs to the sum of net interest income before provision for loan losses and total noninterest 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 | |||||||||||||||||||||||||||||||||
March 31, 2017 | December 31, 2016 | March 31, 2016 | |||||||||||||||||||||||||||||||
Average Balance | Interest Income/Expense | Average Yield/ Cost | Average Balance | Interest Income/Expense | Average Yield/ Cost | Average Balance | Interest Income/Expense | Average Yield/ Cost | |||||||||||||||||||||||||
Assets | (dollars in thousands) | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 86,849 | $ | 84 | 0.39 | % | $ | 106,811 | $ | 103 | 0.38 | % | $ | 235,760 | $ | 238 | 0.41 | % | |||||||||||||||
Investment securities | 450,075 | 2,907 | 2.58 | 381,081 | 2,688 | 2.82 | 340,435 | 1,860 | 2.19 | ||||||||||||||||||||||||
Loans receivable, net (1) | 3,315,792 | 42,436 | 5.19 | 3,178,779 | 43,006 | 5.38 | 2,528,217 | 35,407 | 5.63 | ||||||||||||||||||||||||
Total interest-earning assets | $ | 3,852,716 | $ | 45,427 | 4.78 | % | $ | 3,666,671 | $ | 45,797 | 4.97 | % | $ | 3,104,412 | $ | 37,505 | 4.86 | % | |||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
Interest-bearing deposits | $ | 2,006,365 | $ | 2,135 | 0.43 | % | $ | 1,979,240 | $ | 2,176 | 0.44 | % | $ | 1,733,240 | $ | 2,069 | 0.48 | % | |||||||||||||||
Borrowings | 334,618 | 1,589 | 1.93 | 190,761 | 1,317 | 2.75 | 180,718 | 1,235 | 2.75 | ||||||||||||||||||||||||
Total interest-bearing liabilities | $ | 2,340,983 | $ | 3,724 | 0.65 | % | $ | 2,170,001 | $ | 3,493 | 0.64 | % | $ | 1,913,958 | $ | 3,304 | 0.69 | % | |||||||||||||||
Noninterest-bearing deposits | $ | 1,208,045 | $ | 1,200,536 | $ | 950,526 | |||||||||||||||||||||||||||
Net interest income | $ | 41,703 | $ | 42,304 | $ | 34,201 | |||||||||||||||||||||||||||
Net interest margin (2) | 4.39 | % | 4.59 | % | 4.43 | % | |||||||||||||||||||||||||||
(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 | ||||||||||||
March 31, | December 31, | March 31, | ||||||||||
2017 | 2016 | 2016 | ||||||||||
NONINTEREST INCOME | (dollars in thousands) | |||||||||||
Loan servicing fees | $ | 222 | $ | 263 | $ | 225 | ||||||
Deposit fees | 847 | 934 | 828 | |||||||||
Net gain from sales of loans | 2,811 | 2,387 | 1,906 | |||||||||
Net gain from sales of investment securities | — | — | 753 | |||||||||
Other-than-temporary-impairment recovery/(loss) on investment securities | 1 | — | (207 | ) | ||||||||
Other income | 802 | 734 | 1,343 | |||||||||
Total noninterest income | $ | 4,683 | $ | 4,318 | $ | 4,848 |
Three Months Ended | ||||||||||||
March 31, | December 31, | March 31, | ||||||||||
2017 | 2016 | 2016 | ||||||||||
NONINTEREST EXPENSE | (dollars in thousands) | |||||||||||
Compensation and benefits | $ | 14,887 | $ | 13,815 | $ | 11,739 | ||||||
Premises and occupancy | 2,453 | 2,531 | 2,283 | |||||||||
Data processing and communications | 1,187 | 1,240 | 911 | |||||||||
Other real estate owned operations, net | 12 | 369 | 8 | |||||||||
FDIC insurance premiums | 455 | 320 | 382 | |||||||||
Legal, audit and professional expense | 857 | 830 | 865 | |||||||||
Marketing expense | 818 | 865 | 630 | |||||||||
Office and postage expense | 433 | 441 | 481 | |||||||||
Loan expense | 468 | 714 | 403 | |||||||||
Deposit expense | 1,444 | 1,388 | 1,005 | |||||||||
Merger-related expense | 4,946 | 772 | 3,119 | |||||||||
CDI amortization | 511 | 525 | 344 | |||||||||
Other expense | 1,276 | 1,567 | 1,463 | |||||||||
Total noninterest expense | $ | 29,747 | $ | 25,377 | $ | 23,633 |
March 31, | December 31, | March 31, | ||||||||||
2017 | 2016 | 2016 | ||||||||||
Loan Portfolio | (dollars in thousands) | |||||||||||
Business loans: | ||||||||||||
Commercial and industrial | $ | 593,457 | $ | 563,169 | $ | 491,112 | ||||||
Franchise | 493,158 | 459,421 | 371,875 | |||||||||
Commercial owner occupied | 482,295 | 454,918 | 424,289 | |||||||||
SBA | 107,233 | 96,705 | 78,350 | |||||||||
Warehouse facilities | — | — | 1,394 | |||||||||
Real estate loans: | ||||||||||||
Commercial non-owner occupied | 612,787 | 586,975 | 522,080 | |||||||||
Multi-family | 682,237 | 690,955 | 619,485 | |||||||||
One-to-four family | 100,423 | 100,451 | 106,854 | |||||||||
Construction | 298,279 | 269,159 | 218,069 | |||||||||
Land | 19,738 | 19,829 | 18,222 | |||||||||
Other loans | 3,930 | 4,112 | 6,045 | |||||||||
Total gross loans | 3,393,537 | 3,245,694 | 2,857,775 | |||||||||
Plus: Deferred loan origination costs/(fees) and premiums/(discounts), net | 3,250 | 3,630 | 953 | |||||||||
Total loans | 3,396,787 | 3,249,324 | 2,858,728 | |||||||||
Less: Loans held for sale, at lower of cost or fair value | 11,090 | 7,711 | 7,281 | |||||||||
Loans held for investment | 3,385,697 | 3,241,613 | 2,851,447 | |||||||||
Allowance for loan losses | (23,075 | ) | (21,296 | ) | (18,455 | ) | ||||||
Loans held for investment, net | $ | 3,362,622 | $ | 3,220,317 | $ | 2,832,992 |
March 31, | December 31, | March 31, | ||||||||||
2017 | 2016 | 2016 | ||||||||||
Asset Quality | (dollars in thousands) | |||||||||||
Nonaccrual loans | $ | 513 | $ | 1,141 | $ | 4,823 | ||||||
Other real estate owned | 460 | 460 | 1,161 | |||||||||
Nonperforming assets | $ | 973 | $ | 1,601 | $ | 5,984 | ||||||
Allowance for loan losses | $ | 23,075 | $ | 21,296 | $ | 18,455 | ||||||
Allowance for loan losses as a percent of total nonperforming loans | 4,498 | % | 1,866 | % | 383 | % | ||||||
Nonperforming loans as a percent of loans held for investment | 0.02 | % | 0.04 | % | 0.17 | % | ||||||
Nonperforming assets as a percent of total assets | 0.02 | % | 0.04 | % | 0.17 | % | ||||||
Net loan charge-offs (recoveries) for the quarter ended | $ | 723 | $ | 2,601 | $ | (18 | ) | |||||
Net loan charge-offs for quarter to average total loans, net | 0.02 | % | 0.08 | % | — | % | ||||||
Allowance for loan losses to loans held for investment | 0.68 | % | 0.66 | % | 0.65 | % | ||||||
Delinquent Loans: | ||||||||||||
30 - 59 days | $ | 117 | $ | 122 | $ | 247 | ||||||
60 - 89 days | — | 71 | — | |||||||||
90+ days | 360 | 639 | 3,199 | |||||||||
Total delinquency | $ | 477 | $ | 832 | $ | 3,446 | ||||||
Delinquency as a % of loans held for investment | 0.01 | % | 0.03 | % | 0.12 | % |
March 31, | December 31, | March 31, | ||||||||||
2017 | 2016 | 2016 | ||||||||||
Deposit Accounts | (dollars in thousands) | |||||||||||
Noninterest-bearing checking | $ | 1,232,578 | $ | 1,185,768 | $ | 1,066,861 | ||||||
Interest-bearing: | ||||||||||||
Checking | 191,399 | 182,893 | 169,766 | |||||||||
Money market/Savings | 1,273,917 | 1,202,361 | 1,084,989 | |||||||||
Retail certificates of deposit | 381,738 | 375,203 | 455,637 | |||||||||
Wholesale/brokered certificates of deposit | 217,441 | 199,356 | 129,129 | |||||||||
Total interest-bearing | 2,064,495 | 1,959,813 | 1,839,521 | |||||||||
Total deposits | $ | 3,297,073 | $ | 3,145,581 | $ | 2,906,382 | ||||||
Non-maturity deposits as a percent of total deposits | 81.8 | % | 81.7 | % | 79.9 | % |
March 31, | December 31, | March 31, | ||||||||||
2017 | 2016 | 2016 | ||||||||||
Pacific Premier Bank Capital Ratios | ||||||||||||
Tier 1 leverage ratio | 10.73 | % | 10.94 | % | 11.79 | % | ||||||
Common equity tier 1 risk-based capital ratio | 11.45 | % | 11.70 | % | 12.19 | % | ||||||
Tier 1 risk-based capital ratio | 11.40 | % | 11.70 | % | 12.19 | % | ||||||
Total risk-based capital ratio | 12.09 | % | 12.34 | % | 12.81 | % | ||||||
Pacific Premier Bancorp, Inc. Capital Ratios | ||||||||||||
Tier 1 leverage ratio | 9.45 | % | 9.78 | % | 10.41 | % | ||||||
Common equity tier 1 risk-based capital ratio | 9.79 | % | 10.17 | % | 10.43 | % | ||||||
Tier 1 risk-based capital ratio | 10.06 | % | 10.45 | % | 10.75 | % | ||||||
Total risk-based capital ratio | 12.31 | % | 12.77 | % | 13.32 | % | ||||||
Tangible common equity ratio (1) | 8.85 | % | 8.86 | % | 9.16 | % | ||||||
Share Data | ||||||||||||
Book value per share | $ | 16.88 | $ | 16.54 | $ | 15.58 | ||||||
Shares issued and outstanding | 27,908,816 | 27,798,283 | 27,537,233 | |||||||||
Tangible book value per share (1) | $ | 12.88 | $ | 12.51 | $ | 11.46 | ||||||
Closing stock price | $ | 38.55 | $ | 35.35 | $ | 21.37 | ||||||
(1) A reconciliation of the non-GAAP measures of tangible common equity and tangible book value per share to the GAAP measures of common stockholders' equity and book value per share is set forth below. |
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
ASSETS | 2017 | 2016 | 2016 | 2016 | 2016 | |||||||||||||||
Cash and due from banks | $ | 13,425 | $ | 14,706 | $ | 18,543 | $ | 15,444 | $ | 18,624 | ||||||||||
Interest-bearing deposits with financial institutions | 87,088 | 142,151 | 85,361 | 169,855 | 174,888 | |||||||||||||||
Cash and cash equivalents | 100,513 | 156,857 | 103,904 | 185,299 | 193,512 | |||||||||||||||
Interest-bearing time deposits with financial institutions | 3,944 | 3,944 | 3,944 | 3,944 | 3,944 | |||||||||||||||
Investments held-to-maturity, at amortized cost | 8,272 | 8,565 | 8,900 | 9,292 | 9,590 | |||||||||||||||
Investment securities available-for-sale, at fair value | 435,408 | 380,963 | 313,200 | 245,471 | 269,711 | |||||||||||||||
FHLB, FRB and other stock, at cost | 37,811 | 37,304 | 29,966 | 26,984 | 27,103 | |||||||||||||||
Loans held for sale, at lower of cost or fair value | 11,090 | 7,711 | 9,009 | 10,116 | 7,281 | |||||||||||||||
Loans held for investment | 3,385,697 | 3,241,613 | 3,090,839 | 2,920,619 | 2,851,447 | |||||||||||||||
Allowance for loan losses | (23,075 | ) | (21,296 | ) | (21,843 | ) | (18,955 | ) | (18,455 | ) | ||||||||||
Loans held for investment, net | 3,362,622 | 3,220,317 | 3,068,996 | 2,901,664 | 2,832,992 | |||||||||||||||
Accrued interest receivable | 13,366 | 13,145 | 11,642 | 12,143 | 11,862 | |||||||||||||||
Other real estate owned | 460 | 460 | 711 | 711 | 1,161 | |||||||||||||||
Premises and equipment | 11,799 | 12,014 | 11,314 | 11,014 | 11,963 | |||||||||||||||
Deferred income taxes, net | 12,744 | 16,807 | 20,001 | 16,552 | 17,038 | |||||||||||||||
Bank owned life insurance | 40,696 | 40,409 | 40,116 | 39,824 | 39,535 | |||||||||||||||
Intangible assets | 8,942 | 9,451 | 9,976 | 10,500 | 11,145 | |||||||||||||||
Goodwill | 102,490 | 102,490 | 101,939 | 101,939 | 101,939 | |||||||||||||||
Other assets | 24,271 | 25,874 | 21,213 | 22,213 | 23,292 | |||||||||||||||
Total Assets | $ | 4,174,428 | $ | 4,036,311 | $ | 3,754,831 | $ | 3,597,666 | $ | 3,562,068 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
LIABILITIES: | ||||||||||||||||||||
Deposit accounts: | ||||||||||||||||||||
Noninterest-bearing checking | $ | 1,232,578 | $ | 1,185,768 | $ | 1,160,394 | $ | 1,043,361 | $ | 1,066,861 | ||||||||||
Interest-bearing: | ||||||||||||||||||||
Checking | 191,399 | 182,893 | 181,534 | 181,859 | 169,766 | |||||||||||||||
Money market/savings | 1,273,917 | 1,202,361 | 1,145,609 | 1,086,255 | 1,084,989 | |||||||||||||||
Retail certificates of deposit | 381,738 | 375,203 | 384,083 | 420,673 | 455,637 | |||||||||||||||
Wholesale/brokered certificates of deposit | 217,441 | 199,356 | 188,132 | 198,853 | 129,129 | |||||||||||||||
Total interest-bearing | 2,064,495 | 1,959,813 | 1,899,358 | 1,887,640 | 1,839,521 | |||||||||||||||
Total deposits | 3,297,073 | 3,145,581 | 3,059,752 | 2,931,001 | 2,906,382 | |||||||||||||||
FHLB advances and other borrowings | 311,363 | 327,971 | 136,213 | 120,252 | 124,956 | |||||||||||||||
Subordinated debentures | 69,413 | 69,383 | 69,353 | 69,323 | 69,293 | |||||||||||||||
Accrued expenses and other liabilities | 25,554 | 33,636 | 39,548 | 36,460 | 32,543 | |||||||||||||||
Total Liabilities | 3,703,403 | 3,576,571 | 3,304,866 | 3,157,036 | 3,133,174 | |||||||||||||||
STOCKHOLDERS’ EQUITY: | ||||||||||||||||||||
Common stock | 275 | 274 | 273 | 273 | 273 | |||||||||||||||
Additional paid-in capital | 345,888 | 345,138 | 343,231 | 342,388 | 341,660 | |||||||||||||||
Retained earnings | 126,570 | 117,049 | 105,098 | 95,869 | 85,500 | |||||||||||||||
Accumulated other comprehensive income (loss), net of tax (benefit) | (1,708 | ) | (2,721 | ) | 1,363 | 2,100 | 1,461 | |||||||||||||
Total Stockholders' Equity | 471,025 | 459,740 | 449,965 | 440,630 | 428,894 | |||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 4,174,428 | $ | 4,036,311 | $ | 3,754,831 | $ | 3,597,666 | $ | 3,562,068 |
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES | |||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||
(dollars in thousands, except per share data) | |||||||||||||
(Unaudited) | |||||||||||||
Three Months Ended | |||||||||||||
March 31, | December 31, | March 31, | |||||||||||
2017 | 2016 | 2016 | |||||||||||
INTEREST INCOME | |||||||||||||
Loans | $ | 42,436 | $ | 43,006 | $ | 35,407 | |||||||
Investment securities and other interest-earning assets | 2,991 | 2,791 | 2,098 | ||||||||||
Total interest income | 45,427 | 45,797 | 37,505 | ||||||||||
INTEREST EXPENSE | |||||||||||||
Deposits | 2,135 | 2,176 | 2,069 | ||||||||||
FHLB advances and other borrowings | 604 | 332 | 325 | ||||||||||
Subordinated debentures | 985 | 985 | 910 | ||||||||||
Total interest expense | 3,724 | 3,493 | 3,304 | ||||||||||
Net interest income before provision for loan losses | 41,703 | 42,304 | 34,201 | ||||||||||
Provision for loan losses | 2,502 | 2,054 | 1,120 | ||||||||||
Net interest income after provision for loan losses | 39,201 | 40,250 | 33,081 | ||||||||||
NONINTEREST INCOME | |||||||||||||
Loan servicing fees | 222 | 263 | 225 | ||||||||||
Deposit fees | 847 | 934 | 828 | ||||||||||
Net gain from sales of loans | 2,811 | 2,387 | 1,906 | ||||||||||
Net gain from sales of investment securities | — | — | 753 | ||||||||||
Other-than-temporary-impairment recovery/(loss) on investment securities | 1 | — | (207 | ) | |||||||||
Other income | 802 | 734 | 1,343 | ||||||||||
Total noninterest income | 4,683 | 4,318 | 4,848 | ||||||||||
NONINTEREST EXPENSE | |||||||||||||
Compensation and benefits | 14,887 | 13,815 | 11,739 | ||||||||||
Premises and occupancy | 2,453 | 2,531 | 2,283 | ||||||||||
Data processing | 1,187 | 1,240 | 911 | ||||||||||
Other real estate owned operations, net | 12 | 369 | 8 | ||||||||||
FDIC insurance premiums | 455 | 320 | 382 | ||||||||||
Legal, audit and professional expense | 857 | 830 | 865 | ||||||||||
Marketing expense | 818 | 865 | 630 | ||||||||||
Office, telecommunications and postage expense | 433 | 441 | 481 | ||||||||||
Loan expense | 468 | 714 | 403 | ||||||||||
Deposit expense | 1,444 | 1,388 | 1,005 | ||||||||||
Merger-related expense | 4,946 | 772 | 3,119 | ||||||||||
CDI amortization | 511 | 525 | 344 | ||||||||||
Other expense | 1,276 | 1,567 | 1,463 | ||||||||||
Total noninterest expense | 29,747 | 25,377 | 23,633 | ||||||||||
Net income before income taxes | 14,137 | 19,191 | 14,296 | ||||||||||
Income tax | 4,616 | 7,238 | 5,742 | ||||||||||
Net income | $ | 9,521 | $ | 11,953 | $ | 8,554 | |||||||
EARNINGS PER SHARE | |||||||||||||
Basic | $ | 0.35 | $ | 0.44 | $ | 0.33 | |||||||
Diluted | $ | 0.34 | $ | 0.43 | $ | 0.33 | |||||||
WEIGHTED AVERAGE SHARES OUTSTANDING | |||||||||||||
Basic | 27,528,940 | 27,394,737 | 25,555,654 | ||||||||||
Diluted | 28,197,220 | 28,027,479 | 25,952,187 |
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||
CONSOLIDATED AVERAGE BALANCES AND YIELD DATA | |||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
March 31, 2017 | December 31, 2016 | March 31, 2016 | |||||||||||||||||||||||||||||||
Average Balance | Interest Income/Expense | Average Yield/Cost | Average Balance | Interest Income/Expense | Average Yield/Cost | Average Balance | Interest Income/Expense | Average Yield/Cost | |||||||||||||||||||||||||
Assets | (dollars in thousands) | ||||||||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 86,849 | $ | 84 | 0.39 | % | $ | 106,811 | $ | 103 | 0.38 | % | $ | 235,760 | $ | 238 | 0.41 | % | |||||||||||||||
Investment securities | 450,075 | 2,907 | 2.58 | 381,081 | 2,688 | 2.82 | 340,435 | 1,860 | 2.19 | ||||||||||||||||||||||||
Loans receivable, net (1) | 3,315,792 | 42,436 | 5.19 | 3,178,779 | 43,006 | 5.38 | 2,528,217 | 35,407 | 5.63 | ||||||||||||||||||||||||
Total interest-earning assets | 3,852,716 | 45,427 | 4.78 | 3,666,671 | 45,797 | 4.97 | 3,104,412 | 37,505 | 4.86 | ||||||||||||||||||||||||
Noninterest-earning assets | 196,041 | 194,432 | 167,015 | ||||||||||||||||||||||||||||||
Total assets | $ | 4,048,757 | $ | 3,861,103 | $ | 3,271,427 | |||||||||||||||||||||||||||
Liabilities and Equity | |||||||||||||||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||||||||||||||
Interest checking | $ | 195,258 | $ | 53 | 0.11 | $ | 177,787 | $ | 50 | 0.11 | $ | 164,533 | $ | 47 | 0.11 | ||||||||||||||||||
Money market | 1,133,676 | 972 | 0.35 | 1,105,701 | 1,001 | 0.36 | 891,110 | 820 | 0.37 | ||||||||||||||||||||||||
Savings | 103,449 | 38 | 0.15 | 101,170 | 38 | 0.15 | 94,773 | 38 | 0.16 | ||||||||||||||||||||||||
Retail certificates of deposit | 372,208 | 685 | 0.75 | 379,892 | 696 | 0.73 | 432,182 | 900 | 0.84 | ||||||||||||||||||||||||
Wholesale/brokered certificates of deposit | 201,774 | 387 | 0.78 | 214,690 | 391 | 0.72 | 150,642 | 264 | 0.70 | ||||||||||||||||||||||||
Total interest-bearing deposits | 2,006,365 | 2,135 | 0.43 | 1,979,240 | 2,176 | 0.44 | 1,733,240 | 2,069 | 0.48 | ||||||||||||||||||||||||
FHLB advances and other borrowings | 265,224 | 604 | 0.92 | 121,397 | 332 | 1.09 | 111,444 | 325 | 1.17 | ||||||||||||||||||||||||
Subordinated debentures | 69,394 | 985 | 5.68 | 69,364 | 985 | 5.68 | 69,274 | 910 | 5.25 | ||||||||||||||||||||||||
Total borrowings | 334,618 | 1,589 | 1.93 | 190,761 | 1,317 | 2.75 | 180,718 | 1,235 | 2.75 | ||||||||||||||||||||||||
Total interest-bearing liabilities | 2,340,983 | 3,724 | 0.65 | 2,170,001 | 3,493 | 0.64 | 1,913,958 | 3,304 | 0.69 | ||||||||||||||||||||||||
Noninterest-bearing deposits | 1,208,045 | 1,200,536 | 950,526 | ||||||||||||||||||||||||||||||
Other liabilities | 30,297 | 31,963 | 27,369 | ||||||||||||||||||||||||||||||
Total liabilities | 3,579,325 | 3,402,500 | 2,891,853 | ||||||||||||||||||||||||||||||
Stockholders' equity | 469,432 | 458,603 | 379,574 | ||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 4,048,757 | $ | 3,861,103 | $ | 3,271,427 | |||||||||||||||||||||||||||
Net interest income | $ | 41,703 | $ | 42,304 | $ | 34,201 | |||||||||||||||||||||||||||
Net interest margin (2) | 4.39 | % | 4.59 | % | 4.43 | % | |||||||||||||||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities | 164.58 | % | 168.97 | % | 162.20 | % | |||||||||||||||||||||||||||
(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) | ||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
2017 | 2016 | 2016 | 2016 | 2016 | ||||||||||||||||
Loan Portfolio | ||||||||||||||||||||
Business loans: | ||||||||||||||||||||
Commercial and industrial | $ | 593,457 | $ | 563,169 | $ | 537,809 | $ | 508,141 | $ | 491,112 | ||||||||||
Franchise | 493,158 | 459,421 | 431,618 | 403,855 | 371,875 | |||||||||||||||
Commercial owner occupied | 482,295 | 454,918 | 460,068 | 443,060 | 424,289 | |||||||||||||||
SBA | 107,233 | 96,705 | 92,195 | 86,076 | 78,350 | |||||||||||||||
Warehouse facilities | — | — | — | — | 1,394 | |||||||||||||||
Real estate loans: | ||||||||||||||||||||
Commercial non-owner occupied | 612,787 | 586,975 | 527,412 | 526,362 | 522,080 | |||||||||||||||
Multi-family | 682,237 | 690,955 | 689,813 | 613,573 | 619,485 | |||||||||||||||
One-to-four family | 100,423 | 100,451 | 101,377 | 106,538 | 106,854 | |||||||||||||||
Construction | 298,279 | 269,159 | 231,098 | 215,786 | 218,069 | |||||||||||||||
Land | 19,738 | 19,829 | 18,472 | 18,341 | 18,222 | |||||||||||||||
Other loans | 3,930 | 4,112 | 5,678 | 5,822 | 6,045 | |||||||||||||||
Total gross loans | 3,393,537 | 3,245,694 | 3,095,540 | 2,927,554 | 2,857,775 | |||||||||||||||
Plus: Deferred loan origination costs/(fees) and premiums/(discounts), net | 3,250 | 3,630 | 4,308 | 3,181 | 953 | |||||||||||||||
Total loans | 3,396,787 | 3,249,324 | 3,099,848 | 2,930,735 | 2,858,728 | |||||||||||||||
Less: Loans held for sale, at lower of cost or fair value | 11,090 | 7,711 | 9,009 | 10,116 | 7,281 | |||||||||||||||
Loans held for investment | 3,385,697 | 3,241,613 | 3,090,839 | 2,920,619 | 2,851,447 | |||||||||||||||
Allowance for loan losses | (23,075 | ) | (21,296 | ) | (21,843 | ) | (18,955 | ) | (18,455 | ) | ||||||||||
Loans held for investment, net | $ | 3,362,622 | $ | 3,220,317 | $ | 3,068,996 | $ | 2,901,664 | $ | 2,832,992 |
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||
ASSET QUALITY INFORMATION | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
2017 | 2016 | 2016 | 2016 | 2016 | ||||||||||||||||
Asset Quality | ||||||||||||||||||||
Nonaccrual loans | $ | 513 | $ | 1,141 | $ | 5,734 | $ | 4,062 | $ | 4,823 | ||||||||||
Other real estate owned | 460 | 460 | 711 | 711 | 1,161 | |||||||||||||||
Nonperforming assets | $ | 973 | $ | 1,601 | $ | 6,445 | $ | 4,773 | $ | 5,984 | ||||||||||
Allowance for loan losses | $ | 23,075 | $ | 21,296 | $ | 21,843 | $ | 18,955 | $ | 18,455 | ||||||||||
Allowance for loan losses as a percent of total nonperforming loans | 4,498 | % | 1,866 | % | 381 | % | 467 | % | 383 | % | ||||||||||
Nonperforming loans as a percent of loans held for investment | 0.02 | % | 0.04 | % | 0.19 | % | 0.14 | % | 0.17 | % | ||||||||||
Nonperforming assets as a percent of total assets | 0.02 | % | 0.04 | % | 0.17 | % | 0.13 | % | 0.17 | % | ||||||||||
Net loan charge-offs (recoveries) for the quarter ended | $ | 723 | $ | 2,601 | $ | 1,125 | $ | 1,089 | $ | (18 | ) | |||||||||
Net loan charge-offs (recoveries) for quarter to average total loans, net | 0.02 | % | 0.08 | % | 0.04 | % | 0.04 | % | — | % | ||||||||||
Allowance for loan losses to loans held for investment | 0.68 | % | 0.66 | % | 0.71 | % | 0.65 | % | 0.65 | % | ||||||||||
Delinquent Loans: | ||||||||||||||||||||
30 - 59 days | $ | 117 | $ | 122 | $ | 1,042 | $ | 1,144 | $ | 247 | ||||||||||
60 - 89 days | — | 71 | 1,990 | 2,487 | — | |||||||||||||||
90+ days | 360 | 639 | 2,646 | 1,797 | 3,199 | |||||||||||||||
Total delinquency | $ | 477 | $ | 832 | $ | 5,678 | $ | 5,428 | $ | 3,446 | ||||||||||
Delinquency as a percent of loans held for investment | 0.01 | % | 0.03 | % | 0.18 | % | 0.19 | % | 0.12 | % |
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||
DEPOSIT COMPOSITION | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
2017 | 2016 | 2016 | 2016 | 2016 | ||||||||||||||||
Deposit Accounts | ||||||||||||||||||||
Noninterest-bearing checking | $ | 1,232,578 | $ | 1,185,768 | $ | 1,160,394 | $ | 1,043,361 | $ | 1,066,861 | ||||||||||
Interest-bearing: | ||||||||||||||||||||
Checking | 191,399 | 182,893 | 181,534 | 181,859 | 169,766 | |||||||||||||||
Money market/savings | 1,273,917 | 1,202,361 | 1,145,609 | 1,086,255 | 1,084,989 | |||||||||||||||
Retail certificates of deposit | 381,738 | 375,203 | 384,083 | 420,673 | 455,637 | |||||||||||||||
Wholesale/brokered certificates of deposit | 217,441 | 199,356 | 188,132 | 198,853 | 129,129 | |||||||||||||||
Total interest-bearing | 2,064,495 | 1,959,813 | 1,899,358 | 1,887,640 | 1,839,521 | |||||||||||||||
Total deposits | $ | 3,297,073 | $ | 3,145,581 | $ | 3,059,752 | $ | 2,931,001 | $ | 2,906,382 |
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||
GAAP RECONCILIATIONS | ||||||||||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||||||||
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. | ||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
2017 | 2016 | 2016 | 2016 | 2016 | ||||||||||||||||
Total stockholders' equity | $ | 471,025 | $ | 459,740 | $ | 449,965 | $ | 440,630 | $ | 428,894 | ||||||||||
Less intangible assets | (111,432 | ) | (111,941 | ) | (111,915 | ) | (112,439 | ) | (113,084 | ) | ||||||||||
Tangible common equity | $ | 359,593 | $ | 347,799 | $ | 338,050 | $ | 328,191 | $ | 315,810 | ||||||||||
Book value per share | $ | 16.88 | $ | 16.54 | $ | 16.27 | $ | 15.94 | $ | 15.58 | ||||||||||
Less intangible book value per share | (4.00 | ) | (4.03 | ) | (4.05 | ) | (4.07 | ) | (4.11 | ) | ||||||||||
Tangible book value per share | $ | 12.88 | $ | 12.51 | $ | 12.22 | $ | 11.87 | $ | 11.47 | ||||||||||
Total assets | $ | 4,174,428 | $ | 4,036,311 | $ | 3,754,831 | $ | 3,597,666 | $ | 3,562,068 | ||||||||||
Less intangible assets | (111,432 | ) | (111,941 | ) | (111,915 | ) | (112,439 | ) | (113,084 | ) | ||||||||||
Tangible assets | $ | 4,062,996 | $ | 3,924,370 | $ | 3,642,916 | $ | 3,485,227 | $ | 3,448,984 | ||||||||||
Tangible common equity ratio | 8.85 | % | 8.86 | % | 9.28 | % | 9.42 | % | 9.16 | % |