Date of Report (Date of earliest event reported) | ||||
PACIFIC PREMIER BANCORP, INC. | ||||
(Exact name of registrant as specified in its charter) | ||||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||
PACIFIC PREMIER BANCORP, INC. | |||
Dated: | October 22, 2019 | By: | /s/ STEVEN R. GARDNER |
Steven R. Gardner | |||
Chairman, President and Chief Executive Officer |
• | Net income of $41.4 million, or $0.69 per diluted share |
• | Return on average assets of 1.44%, return on average equity of 8.32% and return on average tangible common equity of 16.27% |
• | Net interest margin increased to 4.36%, core net interest margin increased to 4.12% |
• | 12% annualized growth for non-maturity deposits, or $214.3 million, since June 30, 2019 |
• | Noninterest bearing deposits increased to 41% of total deposits, compared to 39% in the prior quarter |
• | Nonperforming assets as a percentage of total assets of 0.07% |
• | Completed $100 million share repurchase program authorized in October 2018 |
Three Months Ended | ||||||||||||
September 30, | June 30, | September 30, | ||||||||||
2019 | 2019 | 2018 | ||||||||||
Financial Highlights | (dollars in thousands, except per share data) | |||||||||||
Net income | $ | 41,375 | $ | 38,527 | $ | 28,392 | ||||||
Diluted earnings per share | 0.69 | 0.62 | 0.46 | |||||||||
Return on average assets | 1.44 | % | 1.33 | % | 1.00 | % | ||||||
Return on average equity | 8.32 | 7.71 | 5.95 | |||||||||
Return on average tangible common equity (1) | 16.27 | 15.16 | 12.89 | |||||||||
Net interest margin | 4.36 | 4.28 | 4.38 | |||||||||
Core net interest margin (1) | 4.12 | 4.08 | 4.19 | |||||||||
Cost of deposits | 0.71 | 0.73 | 0.54 | |||||||||
Efficiency ratio (2) | 50.9 | 51.1 | 53.5 | |||||||||
Total assets | $ | 11,811,497 | $ | 11,783,781 | $ | 11,503,881 | ||||||
Total deposits | 8,859,288 | 8,861,922 | 8,502,145 | |||||||||
Non-maturity deposits as a percent of total deposits | 85 | % | 82 | % | 85 | % | ||||||
Book value per share | $ | 33.50 | $ | 32.80 | $ | 30.68 | ||||||
Tangible book value per share (1) | 18.41 | 17.92 | 16.06 | |||||||||
Total risk-based capital ratio | 13.40 | % | 13.54 | % | 12.05 | % | ||||||
(1) A reconciliation of the non-U.S. GAAP measures of average tangible common equity, core net interest margin and tangible book value per share to the U.S. GAAP measures of common stockholders' equity and book value are 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 expense to the sum of net interest income before provision for credit losses and total noninterest income, less gains/(loss) on sale of securities, other-than-temporary impairment recovery/(loss) on investment securities, gain/(loss) from other real estate owned and gain/(loss) from debt extinguishment. |
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||
CONSOLIDATED AVERAGE BALANCES AND YIELD DATA | |||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
September 30, 2019 | June 30, 2019 | September 30, 2018 | |||||||||||||||||||||||||||||||
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 | $ | 188,693 | $ | 403 | 0.85 | % | $ | 187,963 | $ | 435 | 0.93 | % | $ | 339,064 | $ | 898 | 1.05 | % | |||||||||||||||
Investment securities | 1,311,649 | 9,227 | 2.81 | 1,396,585 | 10,119 | 2.90 | 1,198,362 | 8,707 | 2.91 | ||||||||||||||||||||||||
Loans receivable, net (1) (2) | 8,728,536 | 122,974 | 5.59 | 8,779,440 | 121,860 | 5.57 | 8,664,796 | 119,271 | 5.46 | ||||||||||||||||||||||||
Total interest-earning assets | $ | 10,228,878 | $ | 132,604 | 5.14 | $ | 10,363,988 | $ | 132,414 | 5.12 | $ | 10,202,222 | $ | 128,876 | 5.01 | ||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
Interest-bearing deposits | $ | 5,343,043 | $ | 15,878 | 1.18 | $ | 5,345,388 | $ | 15,991 | 1.20 | $ | 5,316,195 | $ | 11,942 | 0.89 | ||||||||||||||||||
Borrowings | 436,979 | 4,391 | 3.99 | 675,345 | 5,782 | 3.43 | 583,400 | 4,221 | 2.87 | ||||||||||||||||||||||||
Total interest-bearing liabilities | $ | 5,780,022 | $ | 20,269 | 1.39 | $ | 6,020,733 | $ | 21,773 | 1.45 | $ | 5,899,595 | $ | 16,163 | 1.09 | ||||||||||||||||||
Noninterest-bearing deposits | $ | 3,533,797 | $ | 3,426,508 | $ | 3,473,056 | |||||||||||||||||||||||||||
Net interest income | $ | 112,335 | $ | 110,641 | $ | 112,713 | |||||||||||||||||||||||||||
Net interest margin (3) | 4.36 | 4.28 | 4.38 | ||||||||||||||||||||||||||||||
Cost of deposits | 0.71 | 0.73 | 0.54 | ||||||||||||||||||||||||||||||
Cost of funds (4) | 0.86 | 0.92 | 0.68 | ||||||||||||||||||||||||||||||
(1) Average balance includes loans held for sale and nonperforming loans and is net of deferred loan origination fees/costs and discounts/premiums. | |||||||||||||||||||||||||||||||||
(2) Interest income includes net discount accretion of $6.0 million, $5.0 million and $4.1 million, respectively. | |||||||||||||||||||||||||||||||||
(3) Represents annualized net interest income divided by average interest-earning assets. | |||||||||||||||||||||||||||||||||
(4) Represents annualized total interest expense divided by the sum of average total interest-bearing liabilities and noninterest-bearing deposits. |
Three Months Ended | ||||||||||||
September 30, | June 30, | September 30, | ||||||||||
2019 | 2019 | 2018 | ||||||||||
Provision for Credit Losses | (dollars in thousands) | |||||||||||
Provision for loan losses | $ | 1,365 | $ | 742 | $ | 1,646 | ||||||
Provision for unfunded commitments | 197 | (408 | ) | 335 | ||||||||
Total provision for credit losses | $ | 1,562 | $ | 334 | $ | 1,981 |
Three Months Ended | ||||||||||||
September 30, | June 30, | September 30, | ||||||||||
2019 | 2019 | 2018 | ||||||||||
Noninterest Income | (dollars in thousands) | |||||||||||
Loan servicing fees | $ | 546 | $ | 409 | $ | 400 | ||||||
Service charges on deposit accounts | 1,440 | 1,441 | 1,570 | |||||||||
Other service fee income | 360 | 363 | 317 | |||||||||
Debit card interchange fee income | 421 | 1,145 | 1,061 | |||||||||
Earnings on BOLI | 861 | 851 | 1,270 | |||||||||
Net gain from sales of loans | 2,313 | 902 | 2,029 | |||||||||
Net gain from sales of investment securities | 4,261 | 212 | 1,063 | |||||||||
Other income | 1,228 | 1,001 | 530 | |||||||||
Total noninterest income | $ | 11,430 | $ | 6,324 | $ | 8,240 |
Three Months Ended | ||||||||||||
September 30, | June 30, | September 30, | ||||||||||
2019 | 2019 | 2018 | ||||||||||
Noninterest Expense | (dollars in thousands) | |||||||||||
Compensation and benefits | $ | 35,543 | $ | 33,847 | $ | 37,901 | ||||||
Premises and occupancy | 7,593 | 7,517 | 7,214 | |||||||||
Data processing | 3,094 | 3,036 | 4,095 | |||||||||
Other real estate owned operations, net | 64 | 62 | — | |||||||||
FDIC insurance premiums | (10 | ) | 740 | 1,060 | ||||||||
Legal, audit and professional expense | 3,058 | 3,545 | 3,280 | |||||||||
Marketing expense | 1,767 | 1,425 | 1,569 | |||||||||
Office, telecommunications and postage expense | 1,200 | 1,311 | 1,538 | |||||||||
Loan expense | 1,137 | 1,005 | 1,139 | |||||||||
Deposit expense | 3,478 | 3,668 | 2,833 | |||||||||
Merger-related expense | (4 | ) | 5 | 13,978 | ||||||||
CDI amortization | 4,281 | 4,281 | 4,693 | |||||||||
Other expense | 4,135 | 3,494 | 3,482 | |||||||||
Total noninterest expense | $ | 65,336 | $ | 63,936 | $ | 82,782 |
September 30, | June 30, | September 30, | ||||||||||
2019 | 2019 | 2018 | ||||||||||
(dollars in thousands) | ||||||||||||
Business loans: | ||||||||||||
Commercial and industrial | $ | 1,233,938 | $ | 1,300,083 | $ | 1,359,841 | ||||||
Franchise | 894,023 | 860,299 | 735,366 | |||||||||
Commercial owner occupied | 1,678,888 | 1,667,912 | 1,675,528 | |||||||||
SBA | 179,965 | 180,363 | 193,487 | |||||||||
Agribusiness | 119,633 | 126,857 | 133,241 | |||||||||
Total business loans | 4,106,447 | 4,135,514 | 4,097,463 | |||||||||
Real estate loans: | ||||||||||||
Commercial non-owner occupied | 2,053,590 | 2,121,312 | 1,931,165 | |||||||||
Multi-family | 1,611,904 | 1,520,135 | 1,554,692 | |||||||||
One-to-four family | 273,182 | 248,392 | 376,617 | |||||||||
Construction | 478,961 | 505,401 | 504,708 | |||||||||
Farmland | 171,667 | 169,724 | 138,479 | |||||||||
Land | 30,717 | 40,748 | 49,992 | |||||||||
Total real estate loans | 4,620,021 | 4,605,712 | 4,555,653 | |||||||||
Consumer loans: | ||||||||||||
Consumer loans | 40,548 | 40,680 | 114,736 | |||||||||
Gross loans held for investment | 8,767,016 | 8,781,906 | 8,767,852 | |||||||||
Deferred loan origination costs/(fees) and premiums/(discounts), net | (9,540 | ) | (9,968 | ) | (8,648 | ) | ||||||
Loans held for investment | 8,757,476 | 8,771,938 | 8,759,204 | |||||||||
Allowance for loan losses | (35,000 | ) | (35,026 | ) | (33,306 | ) | ||||||
Loans held for investment, net | $ | 8,722,476 | $ | 8,736,912 | $ | 8,725,898 | ||||||
Loans held for sale, at lower of cost or fair value | $ | 7,092 | $ | 8,529 | $ | 52,880 |
September 30, | June 30, | September 30, | |||||||||
2019 | 2019 | 2018 | |||||||||
(dollars in thousands) | |||||||||||
Business loans: | |||||||||||
Commercial and industrial | $ | 130,494 | $ | 149,766 | $ | 133,938 | |||||
Franchise | 91,018 | 92,966 | 60,179 | ||||||||
Commercial owner occupied | 64,080 | 67,191 | 123,785 | ||||||||
SBA | 35,516 | 28,023 | 38,103 | ||||||||
Agribusiness | 6,241 | 9,859 | 9,016 | ||||||||
Total business loans | 327,349 | 347,805 | 365,021 | ||||||||
Real estate loans: | |||||||||||
Commercial non-owner occupied | 90,464 | 101,956 | 97,585 | ||||||||
Multi-family | 41,289 | 35,061 | 70,683 | ||||||||
One-to-four family | 6,110 | 3,140 | 18,056 | ||||||||
Construction | 59,639 | 64,059 | 50,182 | ||||||||
Farmland | 9,350 | 13,044 | — | ||||||||
Land | 1,285 | 1,625 | 1,175 | ||||||||
Total real estate loans | 208,137 | 218,885 | 237,681 | ||||||||
Consumer loans: | |||||||||||
Consumer loans | 1,463 | 1,551 | 2,080 | ||||||||
Total loan commitments | $ | 536,949 | $ | 568,241 | $ | 604,782 |
September 30, | June 30, | September 30, | ||||||||||
2019 | 2019 | 2018 | ||||||||||
Asset Quality | (dollars in thousands) | |||||||||||
Nonperforming loans | $ | 8,105 | $ | 7,637 | $ | 7,268 | ||||||
Other real estate owned | 126 | 35 | 356 | |||||||||
Other assets owned | — | — | 129 | |||||||||
Nonperforming assets | $ | 8,231 | $ | 7,672 | $ | 7,753 | ||||||
Allowance for loan losses | $ | 35,000 | $ | 35,026 | $ | 33,306 | ||||||
Allowance for loan losses as a percent of total nonperforming loans | 432 | % | 459 | % | 458 | % | ||||||
Nonperforming loans as a percent of loans held for investment | 0.09 | 0.09 | 0.08 | |||||||||
Nonperforming assets as a percent of total assets | 0.07 | 0.07 | 0.07 | |||||||||
Net loan charge-offs/(recoveries) for the quarter ended | $ | 1,391 | $ | 3,572 | $ | 87 | ||||||
Net loan charge-offs for quarter to average total loans (1) | 0.02 | % | 0.04 | % | — | % | ||||||
Allowance for loan losses to loans held for investment (2) | 0.40 | 0.40 | 0.38 | |||||||||
Delinquent Loans | ||||||||||||
30 - 59 days | $ | 1,725 | $ | 3,416 | $ | 1,977 | ||||||
60 - 89 days | 3,212 | 801 | 720 | |||||||||
90+ days | 6,293 | 9,261 | 5,048 | |||||||||
Total delinquency | $ | 11,230 | $ | 13,478 | $ | 7,745 | ||||||
Delinquency as a percentage of loans held for investment | 0.13 | % | 0.15 | % | 0.09 | % | ||||||
(1) The ratio is less than 0.01% as of September 30, 2018. | ||||||||||||
(2) At September 30, 2019, 41% of loans held for investment include a fair value net discount of $46.8 million or 0.53% of loans held for investment. At June 30, 2019, 44% of loans held for investment include a fair value net discount of $52.0 million, or 0.59% of loans held for investment. At September 30, 2018, 53% of loans held for investment include a fair value net discount of $71.7 million or 0.82% of loans held for investment. |
September 30, | June 30, | September 30, | ||||||||||
2019 | 2019 | 2018 | ||||||||||
Deposit Accounts | (dollars in thousands) | |||||||||||
Noninterest-bearing checking | $ | 3,623,546 | $ | 3,480,312 | $ | 3,434,674 | ||||||
Interest-bearing: | ||||||||||||
Checking | 529,401 | 548,314 | 495,483 | |||||||||
Money market/savings | 3,362,453 | 3,272,511 | 3,261,544 | |||||||||
Retail certificates of deposit | 1,019,433 | 1,065,207 | 1,045,334 | |||||||||
Wholesale/brokered certificates of deposit | 324,455 | 495,578 | 265,110 | |||||||||
Total interest-bearing | 5,235,742 | 5,381,610 | 5,067,471 | |||||||||
Total deposits | $ | 8,859,288 | $ | 8,861,922 | $ | 8,502,145 | ||||||
Cost of deposits | 0.71 | % | 0.73 | % | 0.54 | % | ||||||
Noninterest-bearing deposits as a percentage of total deposits | 41 | % | 39 | % | 40 | % | ||||||
Non-maturity deposits as a percent of total deposits | 85 | % | 82 | % | 85 | % | ||||||
Core deposits as a percent of total deposits (1) | 91 | % | 89 | % | 91 | % | ||||||
(1) Core deposits are all transaction accounts and non-brokered certificates of deposit less than $250,000. |
September 30, | June 30, | September 30, | ||||||||||
Capital Ratios | 2019 | 2019 | 2018 | |||||||||
Pacific Premier Bancorp, Inc. Consolidated | ||||||||||||
Tier 1 leverage ratio | 10.34 | % | 10.32 | % | 10.15 | % | ||||||
Common equity tier 1 capital ratio | 10.93 | 10.82 | 10.55 | |||||||||
Tier 1 capital ratio | 11.04 | 11.07 | 10.81 | |||||||||
Total capital ratio | 13.40 | 13.54 | 12.05 | |||||||||
Tangible common equity ratio (1) | 10.01 | 9.96 | 9.47 | |||||||||
Pacific Premier Bank | ||||||||||||
Tier 1 leverage ratio | 12.20 | % | 11.66 | % | 10.83 | % | ||||||
Common equity tier 1 capital ratio | 13.01 | 12.51 | 11.53 | |||||||||
Tier 1 capital ratio | 13.01 | 12.51 | 11.53 | |||||||||
Total capital ratio | 13.41 | 12.90 | 11.92 | |||||||||
Share Data | ||||||||||||
Book value per share | $ | 33.50 | $ | 32.80 | $ | 30.68 | ||||||
Tangible book value per share (1) | 18.41 | 17.92 | 16.06 | |||||||||
Dividend per share | 0.22 | 0.22 | — | |||||||||
Closing stock price (2) | 31.19 | 30.88 | 37.20 | |||||||||
Shares issued and outstanding | 59,364,340 | 60,509,994 | 62,472,721 | |||||||||
Market capitalization (2)(3) | $ | 1,851,574 | $ | 1,868,549 | $ | 2,323,985 | ||||||
(1) A reconciliation of the non-U.S. GAAP measures of tangible common equity and tangible book value per share to the U.S. GAAP measures of common stockholders' equity and book value per share is set forth below. | ||||||||||||
(2) As of the last trading day prior to period end. | ||||||||||||
(3) Dollars in thousands. |
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 | 2019 | 2019 | 2019 | 2018 | 2018 | |||||||||||||||
Cash and due from banks | $ | 166,238 | $ | 139,879 | $ | 122,947 | $ | 125,036 | $ | 151,983 | ||||||||||
Interest-bearing deposits with financial institutions | 261,477 | 235,505 | 55,435 | 78,370 | 111,229 | |||||||||||||||
Cash and cash equivalents | 427,715 | 375,384 | 178,382 | 203,406 | 263,212 | |||||||||||||||
Interest-bearing time deposits with financial institutions | 2,711 | 2,956 | 5,896 | 6,143 | 6,386 | |||||||||||||||
Investments held-to-maturity, at amortized cost | 40,433 | 42,997 | 43,894 | 45,210 | 46,385 | |||||||||||||||
Investment securities available-for-sale, at fair value | 1,256,655 | 1,258,379 | 1,171,410 | 1,103,222 | 1,054,877 | |||||||||||||||
FHLB, FRB and other stock, at cost | 92,986 | 92,841 | 94,751 | 94,918 | 98,779 | |||||||||||||||
Loans held for sale, at lower of cost or fair value | 7,092 | 8,529 | 11,671 | 5,719 | 52,880 | |||||||||||||||
Loans held for investment | 8,757,476 | 8,771,938 | 8,865,855 | 8,836,818 | 8,759,204 | |||||||||||||||
Allowance for loan losses | (35,000 | ) | (35,026 | ) | (37,856 | ) | (36,072 | ) | (33,306 | ) | ||||||||||
Loans held for investment, net | 8,722,476 | 8,736,912 | 8,827,999 | 8,800,746 | 8,725,898 | |||||||||||||||
Accrued interest receivable | 38,603 | 40,420 | 40,302 | 37,837 | 37,683 | |||||||||||||||
Other real estate owned | 126 | 35 | 180 | 147 | 356 | |||||||||||||||
Premises and equipment | 62,851 | 54,218 | 61,523 | 64,691 | 66,103 | |||||||||||||||
Deferred income taxes, net | — | 2,266 | 9,275 | 15,627 | 26,848 | |||||||||||||||
Bank owned life insurance | 112,716 | 112,054 | 111,400 | 110,871 | 110,354 | |||||||||||||||
Intangible assets | 87,560 | 91,840 | 96,120 | 100,556 | 105,187 | |||||||||||||||
Goodwill | 808,322 | 808,322 | 808,726 | 808,726 | 807,892 | |||||||||||||||
Other assets | 151,251 | 156,628 | 118,966 | 89,568 | 101,041 | |||||||||||||||
Total assets | $ | 11,811,497 | $ | 11,783,781 | $ | 11,580,495 | $ | 11,487,387 | $ | 11,503,881 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
LIABILITIES: | ||||||||||||||||||||
Deposit accounts: | ||||||||||||||||||||
Noninterest-bearing checking | $ | 3,623,546 | $ | 3,480,312 | $ | 3,423,893 | $ | 3,495,737 | $ | 3,434,674 | ||||||||||
Interest-bearing: | ||||||||||||||||||||
Checking | 529,401 | 548,314 | 560,274 | 526,088 | 495,483 | |||||||||||||||
Money market/savings | 3,362,453 | 3,272,511 | 3,138,875 | 3,225,849 | 3,261,544 | |||||||||||||||
Retail certificates of deposit | 1,019,433 | 1,065,207 | 1,007,559 | 1,009,066 | 1,045,334 | |||||||||||||||
Wholesale/brokered certificates of deposit | 324,455 | 495,578 | 584,574 | 401,611 | 265,110 | |||||||||||||||
Total interest-bearing | 5,235,742 | 5,381,610 | 5,291,282 | 5,162,614 | 5,067,471 | |||||||||||||||
Total deposits | 8,859,288 | 8,861,922 | 8,715,175 | 8,658,351 | 8,502,145 | |||||||||||||||
FHLB advances and other borrowings | 604,558 | 571,575 | 609,591 | 667,681 | 861,972 | |||||||||||||||
Subordinated debentures | 217,825 | 232,944 | 110,381 | 110,313 | 110,244 | |||||||||||||||
Deferred income taxes, net | 301 | — | — | — | — | |||||||||||||||
Accrued expenses and other liabilities | 140,527 | 132,884 | 138,284 | 81,345 | 113,143 | |||||||||||||||
Total liabilities | 9,822,499 | 9,799,325 | 9,573,431 | 9,517,690 | 9,587,504 | |||||||||||||||
STOCKHOLDERS’ EQUITY: | ||||||||||||||||||||
Common stock | 584 | 595 | 617 | 617 | 617 | |||||||||||||||
Additional paid-in capital | 1,590,168 | 1,618,137 | 1,676,024 | 1,674,274 | 1,671,673 | |||||||||||||||
Retained earnings | 368,051 | 343,366 | 325,363 | 300,407 | 260,764 | |||||||||||||||
Accumulated other comprehensive (loss) income | 30,195 | 22,358 | 5,060 | (5,601 | ) | (16,677 | ) | |||||||||||||
Total stockholders' equity | 1,988,998 | 1,984,456 | 2,007,064 | 1,969,697 | 1,916,377 | |||||||||||||||
Total liabilities and stockholders' equity | $ | 11,811,497 | $ | 11,783,781 | $ | 11,580,495 | $ | 11,487,387 | $ | 11,503,881 |
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, | ||||||||||||||||
2019 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||
INTEREST INCOME | ||||||||||||||||||||
Loans | $ | 122,974 | $ | 121,860 | $ | 119,271 | $ | 366,310 | $ | 289,069 | ||||||||||
Investment securities and other interest-earning assets | 9,630 | 10,554 | 9,605 | 29,951 | 23,333 | |||||||||||||||
Total interest income | 132,604 | 132,414 | 128,876 | 396,261 | 312,402 | |||||||||||||||
INTEREST EXPENSE | ||||||||||||||||||||
Deposits | 15,878 | 15,991 | 11,942 | 45,153 | 25,612 | |||||||||||||||
FHLB advances and other borrowings | 1,214 | 3,083 | 2,494 | 9,099 | 6,642 | |||||||||||||||
Subordinated debentures | 3,177 | 2,699 | 1,727 | 7,627 | 4,983 | |||||||||||||||
Total interest expense | 20,269 | 21,773 | 16,163 | 61,879 | 37,237 | |||||||||||||||
Net interest income before provision for credit losses | 112,335 | 110,641 | 112,713 | 334,382 | 275,165 | |||||||||||||||
Provision for credit losses | 1,562 | 334 | 1,981 | 3,422 | 5,995 | |||||||||||||||
Net interest income after provision for credit losses | 110,773 | 110,307 | 110,732 | 330,960 | 269,170 | |||||||||||||||
NONINTEREST INCOME | ||||||||||||||||||||
Loan servicing fees | 546 | 409 | 400 | 1,353 | 1,037 | |||||||||||||||
Service charges on deposit accounts | 1,440 | 1,441 | 1,570 | 4,211 | 3,777 | |||||||||||||||
Other service fee income | 360 | 363 | 317 | 1,079 | 632 | |||||||||||||||
Debit card interchange fee income | 421 | 1,145 | 1,061 | 2,637 | 3,187 | |||||||||||||||
Earnings on BOLI | 861 | 851 | 1,270 | 2,622 | 2,498 | |||||||||||||||
Net gain from sales of loans | 2,313 | 902 | 2,029 | 4,944 | 8,830 | |||||||||||||||
Net gain from sales of investment securities | 4,261 | 212 | 1,063 | 4,900 | 1,399 | |||||||||||||||
Other income | 1,228 | 1,001 | 530 | 3,689 | 2,697 | |||||||||||||||
Total noninterest income | 11,430 | 6,324 | 8,240 | 25,435 | 24,057 | |||||||||||||||
NONINTEREST EXPENSE | ||||||||||||||||||||
Compensation and benefits | 35,543 | 33,847 | 37,901 | 102,778 | 96,048 | |||||||||||||||
Premises and occupancy | 7,593 | 7,517 | 7,214 | 22,645 | 17,040 | |||||||||||||||
Data processing | 3,094 | 3,036 | 4,095 | 9,060 | 9,544 | |||||||||||||||
Other real estate owned operations, net | 64 | 62 | — | 129 | 3 | |||||||||||||||
FDIC insurance premiums | (10 | ) | 740 | 1,060 | 1,530 | 2,252 | ||||||||||||||
Legal, audit and professional expense | 3,058 | 3,545 | 3,280 | 9,601 | 6,935 | |||||||||||||||
Marketing expense | 1,767 | 1,425 | 1,569 | 4,689 | 4,451 | |||||||||||||||
Office, telecommunications and postage expense | 1,200 | 1,311 | 1,538 | 3,721 | 3,733 | |||||||||||||||
Loan expense | 1,137 | 1,005 | 1,139 | 3,015 | 2,324 | |||||||||||||||
Deposit expense | 3,478 | 3,668 | 2,833 | 10,729 | 6,811 | |||||||||||||||
Merger-related expense | (4 | ) | 5 | 13,978 | 656 | 15,857 | ||||||||||||||
CDI amortization | 4,281 | 4,281 | 4,693 | 12,998 | 8,963 | |||||||||||||||
Other expense | 4,135 | 3,494 | 3,482 | 11,298 | 8,705 | |||||||||||||||
Total noninterest expense | 65,336 | 63,936 | 82,782 | 192,849 | 182,666 | |||||||||||||||
Net income before income taxes | 56,867 | 52,695 | 36,190 | 163,546 | 110,561 | |||||||||||||||
Income tax | 15,492 | 14,168 | 7,798 | 44,926 | 26,864 | |||||||||||||||
Net income | $ | 41,375 | $ | 38,527 | $ | 28,392 | $ | 118,620 | $ | 83,697 | ||||||||||
EARNINGS PER SHARE | ||||||||||||||||||||
Basic | $ | 0.69 | $ | 0.62 | $ | 0.46 | $ | 1.93 | $ | 1.63 | ||||||||||
Diluted | $ | 0.69 | $ | 0.62 | $ | 0.46 | $ | 1.92 | $ | 1.61 | ||||||||||
WEIGHTED AVERAGE SHARES OUTSTANDING | ||||||||||||||||||||
Basic | 59,293,218 | 61,308,046 | 61,727,030 | 60,853,081 | 51,282,533 | |||||||||||||||
Diluted | 59,670,855 | 61,661,773 | 62,361,804 | 61,201,858 | 51,965,647 |
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||
CONSOLIDATED AVERAGE BALANCES AND YIELD DATA | |||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
September 30, 2019 | June 30, 2019 | September 30, 2018 | |||||||||||||||||||||||||||||||
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 | $ | 188,693 | $ | 403 | 0.85 | % | $ | 187,963 | $ | 435 | 0.93 | % | $ | 339,064 | $ | 898 | 1.05 | % | |||||||||||||||
Investment securities | 1,311,649 | 9,227 | 2.81 | 1,396,585 | 10,119 | 2.90 | 1,198,362 | 8,707 | 2.91 | ||||||||||||||||||||||||
Loans receivable, net (1)(2) | 8,728,536 | 122,974 | 5.59 | 8,779,440 | 121,860 | 5.57 | 8,664,796 | 119,271 | 5.46 | ||||||||||||||||||||||||
Total interest-earning assets | 10,228,878 | 132,604 | 5.14 | 10,363,988 | 132,414 | 5.12 | 10,202,222 | 128,876 | 5.01 | ||||||||||||||||||||||||
Noninterest-earning assets | 1,232,963 | 1,221,985 | 1,185,882 | ||||||||||||||||||||||||||||||
Total assets | $ | 11,461,841 | $ | 11,585,973 | $ | 11,388,104 | |||||||||||||||||||||||||||
Liabilities and Equity | |||||||||||||||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||||||||||||||
Interest checking | $ | 553,588 | $ | 688 | 0.49 | % | $ | 543,473 | $ | 535 | 0.39 | % | $ | 532,246 | $ | 480 | 0.36 | % | |||||||||||||||
Money market | 3,107,570 | 7,736 | 0.99 | 2,978,065 | 7,305 | 0.98 | 3,143,556 | 6,391 | 0.81 | ||||||||||||||||||||||||
Savings | 239,601 | 103 | 0.17 | 242,483 | 92 | 0.15 | 264,453 | 97 | 0.15 | ||||||||||||||||||||||||
Retail certificates of deposit | 1,044,174 | 4,867 | 1.85 | 1,025,404 | 4,610 | 1.80 | 1,059,416 | 3,417 | 1.28 | ||||||||||||||||||||||||
Wholesale/brokered certificates of deposit | 398,110 | 2,484 | 2.48 | 555,963 | 3,449 | 2.49 | 316,524 | 1,557 | 1.95 | ||||||||||||||||||||||||
Total interest-bearing deposits | 5,343,043 | 15,878 | 1.18 | 5,345,388 | 15,991 | 1.20 | 5,316,195 | 11,942 | 0.89 | ||||||||||||||||||||||||
FHLB advances and other borrowings | 214,264 | 1,214 | 2.25 | 491,706 | 3,083 | 2.51 | 473,197 | 2,494 | 2.09 | ||||||||||||||||||||||||
Subordinated debentures | 222,715 | 3,177 | 5.71 | 183,639 | 2,699 | 5.88 | 110,203 | 1,727 | 6.27 | ||||||||||||||||||||||||
Total borrowings | 436,979 | 4,391 | 3.99 | 675,345 | 5,782 | 3.43 | 583,400 | 4,221 | 2.87 | ||||||||||||||||||||||||
Total interest-bearing liabilities | 5,780,022 | 20,269 | 1.39 | 6,020,733 | 21,773 | 1.45 | 5,899,595 | 16,163 | 1.09 | ||||||||||||||||||||||||
Noninterest-bearing deposits | 3,533,797 | 3,426,508 | 3,473,056 | ||||||||||||||||||||||||||||||
Other liabilities | 157,711 | 138,746 | 107,055 | ||||||||||||||||||||||||||||||
Total liabilities | 9,471,530 | 9,585,987 | 9,479,706 | ||||||||||||||||||||||||||||||
Stockholders' equity | 1,990,311 | 1,999,986 | 1,908,398 | ||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 11,461,841 | $ | 11,585,973 | $ | 11,388,104 | |||||||||||||||||||||||||||
Net interest income | $ | 112,335 | $ | 110,641 | $ | 112,713 | |||||||||||||||||||||||||||
Net interest margin (3) | 4.36 | % | 4.28 | % | 4.38 | % | |||||||||||||||||||||||||||
Cost of deposits | 0.71 | 0.73 | 0.54 | ||||||||||||||||||||||||||||||
Cost of funds (4) | 0.86 | 0.92 | 0.68 | ||||||||||||||||||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities | 176.97 | 172.14 | 172.93 | ||||||||||||||||||||||||||||||
(1) Average balance includes loans held for sale and nonperforming loans and is net of deferred loan origination fees/costs and discounts/premiums. | |||||||||||||||||||||||||||||||||
(2) Interest income includes net discount accretion of $6.0 million, $5.0 million and $4.1 million, respectively. | |||||||||||||||||||||||||||||||||
(3) Represents annualized net interest income divided by average interest-earning assets. | |||||||||||||||||||||||||||||||||
(4) Represents annualized total interest expense divided by the sum of average total interest-bearing liabilities and noninterest-bearing deposits. |
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||
LOAN PORTFOLIO COMPOSITION | ||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
2019 | 2019 | 2019 | 2018 | 2018 | ||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Business loans | ||||||||||||||||||||
Commercial and industrial | $ | 1,233,938 | $ | 1,300,083 | $ | 1,336,520 | $ | 1,364,423 | $ | 1,359,841 | ||||||||||
Franchise | 894,023 | 860,299 | 813,057 | 765,416 | 735,366 | |||||||||||||||
Commercial owner occupied | 1,678,888 | 1,667,912 | 1,648,762 | 1,679,122 | 1,675,528 | |||||||||||||||
SBA | 179,965 | 180,363 | 188,757 | 193,882 | 193,487 | |||||||||||||||
Agribusiness | 119,633 | 126,857 | 134,603 | 138,519 | 133,241 | |||||||||||||||
Total business loans | 4,106,447 | 4,135,514 | 4,121,699 | 4,141,362 | 4,097,463 | |||||||||||||||
Real estate loans | ||||||||||||||||||||
Commercial non-owner occupied | 2,053,590 | 2,121,312 | 2,124,250 | 2,003,174 | 1,931,165 | |||||||||||||||
Multi-family | 1,611,904 | 1,520,135 | 1,511,942 | 1,535,289 | 1,554,692 | |||||||||||||||
One-to-four family | 273,182 | 248,392 | 279,467 | 356,264 | 376,617 | |||||||||||||||
Construction | 478,961 | 505,401 | 538,197 | 523,643 | 504,708 | |||||||||||||||
Farmland | 171,667 | 169,724 | 167,345 | 150,502 | 138,479 | |||||||||||||||
Land | 30,717 | 40,748 | 46,848 | 46,628 | 49,992 | |||||||||||||||
Total real estate loans | 4,620,021 | 4,605,712 | 4,668,049 | 4,615,500 | 4,555,653 | |||||||||||||||
Consumer loans | ||||||||||||||||||||
Consumer loans | 40,548 | 40,680 | 85,302 | 89,424 | 114,736 | |||||||||||||||
Gross loans held for investment | 8,767,016 | 8,781,906 | 8,875,050 | 8,846,286 | 8,767,852 | |||||||||||||||
Deferred loan origination costs/(fees) and premiums/(discounts), net | (9,540 | ) | (9,968 | ) | (9,195 | ) | (9,468 | ) | (8,648 | ) | ||||||||||
Loans held for investment | 8,757,476 | 8,771,938 | 8,865,855 | 8,836,818 | 8,759,204 | |||||||||||||||
Allowance for loan losses | (35,000 | ) | (35,026 | ) | (37,856 | ) | (36,072 | ) | (33,306 | ) | ||||||||||
Loans held for investment, net | $ | 8,722,476 | $ | 8,736,912 | $ | 8,827,999 | $ | 8,800,746 | $ | 8,725,898 | ||||||||||
Loans held for sale, at lower of cost or fair value | $ | 7,092 | $ | 8,529 | $ | 11,671 | $ | 5,719 | $ | 52,880 |
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||
ASSET QUALITY INFORMATION | ||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
2019 | 2019 | 2019 | 2018 | 2018 | ||||||||||||||||
Asset Quality | (dollars in thousands) | |||||||||||||||||||
Nonperforming loans | $ | 8,105 | $ | 7,637 | $ | 12,858 | $ | 4,857 | $ | 7,268 | ||||||||||
Other real estate owned | 126 | 35 | 180 | 147 | 356 | |||||||||||||||
Other assets owned | — | — | 13 | 13 | 129 | |||||||||||||||
Nonperforming assets | $ | 8,231 | $ | 7,672 | $ | 13,051 | $ | 5,017 | $ | 7,753 | ||||||||||
Allowance for loan losses | $ | 35,000 | $ | 35,026 | $ | 37,856 | $ | 36,072 | $ | 33,306 | ||||||||||
Allowance for loan losses as a percent of total nonperforming loans | 432 | % | 459 | % | 294 | % | 743 | % | 458 | % | ||||||||||
Nonperforming loans as a percent of loans held for investment | 0.09 | 0.09 | 0.15 | 0.05 | 0.08 | |||||||||||||||
Nonperforming assets as a percent of total assets | 0.07 | 0.07 | 0.11 | 0.04 | 0.07 | |||||||||||||||
Net loan charge-offs for the quarter ended | $ | 1,391 | $ | 3,572 | $ | 228 | $ | 138 | $ | 87 | ||||||||||
Net loan charge-offs for the quarter to average total loans(1) | 0.02 | % | 0.04 | % | — | % | — | % | — | % | ||||||||||
Allowance for loan losses to loans held for investment (2) | 0.40 | % | 0.40 | % | 0.43 | % | 0.41 | % | 0.38 | % | ||||||||||
Delinquent Loans | ||||||||||||||||||||
30 - 59 days | $ | 1,725 | $ | 3,416 | $ | 2,299 | $ | 7,046 | $ | 1,977 | ||||||||||
60 - 89 days | 3,212 | 801 | 1,982 | 1,242 | 720 | |||||||||||||||
90+ days | 6,293 | 9,261 | 11,481 | 4,565 | 5,048 | |||||||||||||||
Total delinquency | $ | 11,230 | $ | 13,478 | $ | 15,762 | $ | 12,853 | $ | 7,745 | ||||||||||
Delinquency as a percent of loans held for investment | 0.13 | % | 0.15 | % | 0.18 | % | 0.15 | % | 0.09 | % | ||||||||||
(1) The ratios are less than 0.01% as of March 31, 2019, December 31, 2018, and September 30, 2018. | ||||||||||||||||||||
(2) At September 30, 2019, 41% of loans held for investment include a fair value net discount of $46.8 million or 0.53% of loans held for investment. At June 30, 2019, 44% of loans held for investment include a fair value net discount of $52.0 million, or 0.59% of loans held for investment. At September 30, 2018, 53% of loans held for investment include a fair value net discount of $71.7 million or 0.82% of loans held for investment. |
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES | ||||||||||||
GAAP RECONCILIATIONS | ||||||||||||
(dollars in thousands, except per share data) | ||||||||||||
The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance. However, this non-GAAP financial measure is supplemental and is not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for this adjusted measure, this presentation may not be comparable to other similarly titled adjusted measures reported by other companies. For periods presented below, return on average tangible common equity is a non-U.S. GAAP financial measure derived from U.S. GAAP-based amounts. We calculate this figure by excluding CDI amortization expense from net income and excluding the average CDI and average goodwill from the average stockholders' equity during the periods indicated. Management believes that the exclusion of such items from this financial measure provides useful information to gain an understanding of the operating results of our core business. | ||||||||||||
Three Months Ended | ||||||||||||
September 30, | June 30, | September 30, | ||||||||||
2019 | 2019 | 2018 | ||||||||||
Net income | $ | 41,375 | $ | 38,527 | $ | 28,392 | ||||||
Plus CDI amortization expense | 4,281 | 4,281 | 4,693 | |||||||||
Less CDI amortization expense tax adjustment | 1,240 | 1,240 | 1,011 | |||||||||
Net income for average tangible common equity | $ | 44,416 | $ | 41,568 | $ | 32,074 | ||||||
Average stockholders' equity | $ | 1,990,311 | $ | 1,999,986 | $ | 1,908,398 | ||||||
Less average CDI | 90,178 | 94,460 | 108,258 | |||||||||
Less average goodwill | 808,322 | 808,778 | 805,116 | |||||||||
Average tangible common equity | $ | 1,091,811 | $ | 1,096,748 | $ | 995,024 | ||||||
Return on average equity | 8.32 | % | 7.71 | % | 5.95 | % | ||||||
Return on average tangible common equity | 16.27 | % | 15.16 | % | 12.89 | % |
Tangible book value per share and tangible common equity to tangible assets (the “tangible common equity ratio”) are non-U.S. GAAP financial measures derived from U.S. GAAP-based amounts. 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 calculate the tangible common equity ratio by excluding the balance of intangible assets from common stockholders' equity and dividing by tangible assets. 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-U.S. GAAP financial measures provide information that is important to investors and that is useful in understanding our capital position and ratios. | ||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
2019 | 2019 | 2019 | 2018 | 2018 | ||||||||||||||||
Total stockholders' equity | $ | 1,988,998 | $ | 1,984,456 | $ | 2,007,064 | $ | 1,969,697 | $ | 1,916,377 | ||||||||||
Less intangible assets | 895,882 | 900,162 | 904,846 | 909,282 | 913,079 | |||||||||||||||
Tangible common equity | $ | 1,093,116 | $ | 1,084,294 | $ | 1,102,218 | $ | 1,060,415 | $ | 1,003,298 | ||||||||||
Book value per share | $ | 33.50 | $ | 32.80 | $ | 31.97 | $ | 31.52 | $ | 30.68 | ||||||||||
Less intangible book value per share | 15.09 | 14.88 | 14.41 | 14.55 | 14.62 | |||||||||||||||
Tangible book value per share | $ | 18.41 | $ | 17.92 | $ | 17.56 | $ | 16.97 | $ | 16.06 | ||||||||||
Total assets | $ | 11,811,497 | $ | 11,783,781 | $ | 11,580,495 | $ | 11,487,387 | $ | 11,503,881 | ||||||||||
Less intangible assets | 895,882 | 900,162 | 904,846 | 909,282 | 913,079 | |||||||||||||||
Tangible assets | $ | 10,915,615 | $ | 10,883,619 | $ | 10,675,649 | $ | 10,578,105 | $ | 10,590,802 | ||||||||||
Tangible common equity ratio | 10.01 | % | 9.96 | % | 10.32 | % | 10.02 | % | 9.47 | % |
Core net interest income and core net interest margin are non-U.S. GAAP financial measures derived from U.S. GAAP-based amounts. We calculate core net interest income by excluding scheduled accretion income, accelerated accretion income, CD mark-to-market and nonrecurring nonaccrual interest paid from net interest income. The core net interest margin is calculated as the ratio of core net interest income to average interest-earning assets. Management believes that the exclusion of such items from this financial measure provides useful information to gain an understanding of the operating results of our core business. | ||||||||||||
Three Months Ended | ||||||||||||
September 30, | June 30, | September 30, | ||||||||||
2019 | 2019 | 2018 | ||||||||||
Net interest income | $ | 112,335 | $ | 110,641 | $ | 112,713 | ||||||
Less scheduled accretion income | 2,161 | 2,387 | 2,837 | |||||||||
Less accelerated accretion income | 3,865 | 2,563 | 1,302 | |||||||||
Less CD mark-to-market | 124 | 124 | 491 | |||||||||
Less nonrecurring nonaccrual interest paid | 37 | 107 | 380 | |||||||||
Core net interest income | $ | 106,148 | $ | 105,460 | $ | 107,703 | ||||||
Average interest-earning assets | $ | 10,228,878 | $ | 10,363,988 | $ | 10,202,222 | ||||||
Net interest margin | 4.36 | % | 4.28 | % | 4.38 | % | ||||||
Core net interest margin | 4.12 | % | 4.08 | % | 4.19 | % |
Cover Page Cover Page |
Oct. 18, 2019 |
---|---|
Cover page. | |
Document Type | 8-K |
Document Period End Date | Oct. 18, 2019 |
Entity Registrant Name | PACIFIC PREMIER BANCORP INC |
Entity Central Index Key | 0001028918 |
Amendment Flag | false |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 0-22193 |
Entity Tax Identification Number | 33-0743196 |
Entity Address, Address Line One | 17901 Von Karman Avenue |
Entity Address, Address Line Two | Suite 1200 |
Entity Address, City or Town | Irvine |
Entity Address, State or Province | CA |
Entity Address, Postal Zip Code | 92614 |
City Area Code | 949 |
Local Phone Number | 864-8000 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Entity Emerging Growth Company | false |
Title of 12(b) Security | Common Stock, par value $0.01 per share |
Trading Symbol | PPBI |
Security Exchange Name | NASDAQ |
/8IS'7N-SD8)M3FX-FG,-
MDW]^0Z
]_.Y]B+X#??SN?X<)#I'6'[%M!6FXG
M<4&6< ,)UA'RRZ?W1P5>%+WRN%Z/=BS"(L(?ZG."Y[WR&8;N56.?CY-@B?)B
M&0%W)C!.9^+-PFAY>A/.<(XN\#T:)3,O/J.P//P_?"H*:7$&^)T'X5W=$Y::
M1MZ2)(3XZ,-YN#@EX^.L_#,, AS3/P%^4::")=*+8D1BZ &AT;_E(Q1[,S(:
M#D\M0#@@2+N1=WN$0F"(Z_E%Q^GKIBZ+JNDXDJKIMF%)FFUHSD!696F@FYW[
MSYU'-3Q"I3=[?P3N[W2< %.]>.)%.2R _CKO;2"\)_Y.#+1>VL0L>M$P#O#B
M-[QLKD.3'=$V7<%0'%46S;YN]4U3TC59EP15$]?KV-'PZ(,@"*(@&:9H/ 7*
M(WP;YL3;%Q< :6 L:@/1,41'T61)-43%L$Q;5$13 2H/5&6-\:Z&1Q^N+'OH
M#FUT-7(^#9T1ZEL7]N7H"@TO[ =+Z&U*T"I/SS^ G .;THC"$,2PGZ"+B0K
M^!XQWV-C08H#1H<_ /J]JK1CAEC?,[SF9Y LQE5O"95TVDHN)B+]6
MN2IA\6F\K6TKFAU0ST(%&@#59%D+WJ4S# !*>Z!L"\>* 51C4YY/ [M+.0,!
ME/9 >4&7UE ].;9W4J>=S$64$+E/B4I!LNM43&% Z($!@2G%NFEG.@"8IH%I
MXR 4N-202Z:4> !@ LRVP710B!)@:@BFK12,KAV89GFG/N5B%A=5 ;5T2L2_
M%_%<,4]+G]1.1^WR. V44F#K.L #J-T"Y3J4*QWS!U :N,(Q:C+NV3V!5":
M ^50+\24!Z : \JKJNYU"*B>.*:.Q*7(\SJ&;I+-!"FC/T6!@U5],1S\[2\!
M9_R1)G?+> X38.34^X98=<"FJ:A&5+NPWL*-#5$D[G4X_!3@4T-V>0>#1P<
MI-)N%W@0I5^6$8DDB2^%W P6B[Q** E+2^ ^4V.K'
M3(QSY.:WM9?GUB#C7K2[3VV%C,UO*V1L?EM[*>/>G"-?EBQ7KE:%73/.+6QH
MZ1;VO(P&\C\'!_"@9E"S-M7,#VSY7Z,Q%U SJ!G4[*Z:N8$E9[-&\_I"S:!F
M4+.[:N8$/K4#+!JA9E"S-F A]RYU/*65B=[R[*\1$)K;$\WUJ6\I^?/UEF>GS*V/U#7@5;[ 7>IY
M7SKAV<>5^](AZ 10 2I Q9,=LM,XI3;L=L,?9[C$9J#=* #-E_/;6)!3S@,:
M^"I6-.R'H0)&J(#MV30,H )0@=ZJ +>XG E4@MEA6]%A98Q.P'X)5( *4 $J
M.FA;V4:,U/'#*B7]7%EW_<3%P%8IJ?I0"#KL&51J\P'!W2/(5:P%0! (-C@*
MFHV@GOO[W01S*Z]6<.BB>X_^N&9[]
M&KT,BVMDK$6$M^E(8@H*,(,'A( O"@'('8!O7V%J LR%9^7G+W!T+G. Q=AU
M;?AR,R_2M<'+ F@UX<8Q7==JGCI4AT]($K5=256W.=IX$[4V8[G92G/E!?F<
MWLKSUJ;K:]B($^S'C1=DY-$T"8LOLK42XAOLU=F:EV'+J/:,#WMU8J_.EH\/
MF_RAE%LA9>S5V7(!8Z].A'/=^M)ANT84/@H?A5^U\+%7YPZ^/+0G=$,=K9'&=?R4EV+K,%5N )8#W3S!5FK84A6
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M3\=/N
:**]0P1]@
M7SD#^,M])E:[\Q3&31U!GN.G!42G+.*>7UGY&TPS_,,$^<*ZQDD$-P(RE(P9
M[\"EA^#FUP8?SQB_.;D3,EU[(=> 23AEX3P0$R^ C]#Q?9U[B(LY3(EV22BVE
;9?/7J;LVSXY/CF[)G
MX^/#DX^H>H;*1Y ^I _I0_J0OGE9^\RI+ 4VP::N;!J64O)#%J6D$/G7>"+O
M2RX%O!\=W+6[CM>A'3MHTILFQU(YT@V:0--FFKID301->M/$J(VR9^"I09XL
MI20/VF\_.G[RZ:S>D@@RN8KRSZ(@64JFRP+-))I,9+.4"C7#<- UPP&CCJ.R
M?M#.;@ T3413Z2 'T 2:K9\+58KA )I L_7,Y)QAU 2:&J)I4U^MZ))N:!KF
MHSJIZUT7JQWAI1"K@SPPMW3.W&(C6!DT-4@33,&@J3&:6)<,P:!);YH8M90R
MHX,G\+0QU7ZG#@[VQ4UU)"[BDDRB?+K,,C"YBM+/+]RCP'#0-<.!PV'1 I@:
M@LDH