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 | ||||||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
PACIFIC PREMIER BANCORP, INC. | |||||||||||
Dated: | April 26, 2022 | By: | /s/ STEVEN R. GARDNER | ||||||||
Steven R. Gardner | |||||||||||
Chairman, Chief Executive Officer, and President |
Three Months Ended | ||||||||||||||||||||
March 31, | December 31, | March 31, | ||||||||||||||||||
(Dollars in thousands, except per share data) | 2022 | 2021 | 2021 | |||||||||||||||||
Financial highlights (unaudited) | ||||||||||||||||||||
Net income | $ | 66,904 | $ | 84,831 | $ | 68,668 | ||||||||||||||
Diluted earnings per share | 0.70 | 0.89 | 0.72 | |||||||||||||||||
Common equity dividend per share paid | 0.33 | 0.33 | 0.30 | |||||||||||||||||
Return on average assets | 1.28 | % | 1.63 | % | 1.37 | % | ||||||||||||||
Return on average equity | 9.34 | 11.90 | 9.99 | |||||||||||||||||
Return on average tangible common equity (1) | 14.66 | 18.66 | 16.21 | |||||||||||||||||
Pre-provision net revenue on average assets (1) | 1.72 | 1.93 | 1.86 | |||||||||||||||||
Net interest margin | 3.41 | 3.53 | 3.55 | |||||||||||||||||
Core net interest margin (1) | 3.33 | 3.38 | 3.30 | |||||||||||||||||
Cost of deposits | 0.04 | 0.04 | 0.11 | |||||||||||||||||
Efficiency ratio (1) | 50.7 | 48.0 | 48.6 | |||||||||||||||||
Noninterest expense (excluding merger-related expense) as a percent of average assets (1) | 1.86 | % | 1.86 | % | 1.85 | % | ||||||||||||||
Total assets | $ | 21,622,296 | $ | 21,094,429 | $ | 20,173,298 | ||||||||||||||
Total deposits | 17,689,223 | 17,115,589 | 16,740,007 | |||||||||||||||||
Loan-to-deposit ratio | 83.4 | % | 83.6 | % | 78.4 | % | ||||||||||||||
Non-maturity deposits as a percent of total deposits | 94.2 | 93.8 | 91.8 | |||||||||||||||||
Book value per share | $ | 29.31 | $ | 30.58 | $ | 28.56 | ||||||||||||||
Tangible book value per share (1) | 19.12 | 20.29 | 18.19 | |||||||||||||||||
Total capital ratio | 14.37 | % | 14.62 | % | 16.26 | % |
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONSOLIDATED AVERAGE BALANCES AND YIELD DATA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2022 | December 31, 2021 | March 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 322,236 | $ | 90 | 0.11 | % | $ | 334,371 | $ | 66 | 0.08 | % | $ | 1,309,366 | $ | 301 | 0.09 | % | ||||||||||||||||||||||||||||||||||||||
Investment securities | 4,546,408 | 17,852 | 1.57 | 4,833,251 | 19,522 | 1.62 | 4,087,451 | 17,468 | 1.71 | |||||||||||||||||||||||||||||||||||||||||||||||
Loans receivable, net (1) (2) | 14,371,588 | 150,604 | 4.25 | 14,005,836 | 157,418 | 4.46 | 13,093,609 | 155,225 | 4.81 | |||||||||||||||||||||||||||||||||||||||||||||||
Total interest-earning assets | $ | 19,240,232 | $ | 168,546 | 3.55 | $ | 19,173,458 | $ | 177,006 | 3.66 | $ | 18,490,426 | $ | 172,994 | 3.79 | |||||||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits | $ | 10,351,434 | $ | 1,673 | 0.07 | $ | 10,471,426 | $ | 1,694 | 0.06 | $ | 10,420,199 | $ | 4,426 | 0.17 | |||||||||||||||||||||||||||||||||||||||||
Borrowings | 555,879 | 5,034 | 3.63 | 400,014 | 4,593 | 4.59 | 523,565 | 6,916 | 5.36 | |||||||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | $ | 10,907,313 | $ | 6,707 | 0.25 | $ | 10,871,440 | $ | 6,287 | 0.23 | $ | 10,943,764 | $ | 11,342 | 0.42 | |||||||||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | $ | 6,928,872 | $ | 6,911,702 | $ | 6,034,319 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 161,839 | $ | 170,719 | $ | 161,652 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest margin (3) | 3.41 | 3.53 | 3.55 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of deposits (4) | 0.04 | 0.04 | 0.11 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of funds (5) | 0.15 | 0.14 | 0.27 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities | 176.40 | 176.37 | 168.96 |
Three Months Ended | ||||||||||||||||||||
March 31, | December 31, | March 31, | ||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2021 | |||||||||||||||||
Provision for credit losses | ||||||||||||||||||||
Provision for loan losses | $ | 211 | $ | (14,710) | $ | 315 | ||||||||||||||
Provision for unfunded commitments | 218 | 51 | 1,659 | |||||||||||||||||
Provision for held-to-maturity securities | 19 | 11 | — | |||||||||||||||||
Total provision for credit losses | $ | 448 | $ | (14,648) | $ | 1,974 |
Three Months Ended | ||||||||||||||||||||
March 31, | December 31, | March 31, | ||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2021 | |||||||||||||||||
Noninterest income | ||||||||||||||||||||
Loan servicing income | $ | 419 | $ | 505 | $ | 458 | ||||||||||||||
Service charges on deposit accounts | 2,615 | 2,590 | 2,032 | |||||||||||||||||
Other service fee income | 367 | 391 | 473 | |||||||||||||||||
Debit card interchange fee income | 836 | 769 | 787 | |||||||||||||||||
Earnings on bank owned life insurance | 3,221 | 3,521 | 2,233 | |||||||||||||||||
Net gain from sales of loans | 1,494 | 1,334 | 361 | |||||||||||||||||
Net gain from sales of investment securities | 2,134 | 3,585 | 4,046 | |||||||||||||||||
Trust custodial account fees | 11,579 | 11,611 | 7,222 | |||||||||||||||||
Escrow and exchange fees | 1,661 | 2,221 | 1,526 | |||||||||||||||||
Other income | 1,568 | 754 | 4,602 | |||||||||||||||||
Total noninterest income | $ | 25,894 | $ | 27,281 | $ | 23,740 |
Three Months Ended | ||||||||||||||||||||
March 31, | December 31, | March 31, | ||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2021 | |||||||||||||||||
Noninterest expense | ||||||||||||||||||||
Compensation and benefits | $ | 56,981 | $ | 56,076 | $ | 52,548 | ||||||||||||||
Premises and occupancy | 11,952 | 11,403 | 11,980 | |||||||||||||||||
Data processing | 5,996 | 5,881 | 5,828 | |||||||||||||||||
FDIC insurance premiums | 1,396 | 1,389 | 1,181 | |||||||||||||||||
Legal and professional services | 4,068 | 5,870 | 3,935 | |||||||||||||||||
Marketing expense | 1,809 | 1,821 | 1,598 | |||||||||||||||||
Office expense | 1,203 | 1,463 | 1,829 | |||||||||||||||||
Loan expense | 1,134 | 857 | 1,115 | |||||||||||||||||
Deposit expense | 3,751 | 3,836 | 3,859 | |||||||||||||||||
Merger-related expense | — | — | 5 | |||||||||||||||||
Amortization of intangible assets | 3,592 | 3,880 | 4,143 | |||||||||||||||||
Other expense | 5,766 | 4,776 | 4,468 | |||||||||||||||||
Total noninterest expense | $ | 97,648 | $ | 97,252 | $ | 92,489 |
Three Months Ended | |||||||||||||||||
March 31, | December 31, | March 31, | |||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2021 | ||||||||||||||
Beginning loan balance | $ | 14,306,766 | $ | 13,990,961 | $ | 13,237,034 | |||||||||||
New commitments | 1,461,992 | 1,479,445 | 1,153,345 | ||||||||||||||
Unfunded new commitments | (399,235) | (408,963) | (407,047) | ||||||||||||||
Net new fundings | 1,062,757 | 1,070,482 | 746,298 | ||||||||||||||
Amortization/maturities/payoffs | (786,700) | (935,064) | (773,170) | ||||||||||||||
Net draws on existing lines of credit | 182,868 | 194,548 | (82,472) | ||||||||||||||
Loan sales | (17,991) | (13,427) | (1,035) | ||||||||||||||
Charge-offs | (2,299) | (734) | (1,952) | ||||||||||||||
Net increase (decrease) | 438,635 | 315,805 | (112,331) | ||||||||||||||
Ending loan balance | $ | 14,745,401 | $ | 14,306,766 | $ | 13,124,703 | |||||||||||
March 31, | December 31, | March 31, | ||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2021 | |||||||||||||||||
Investor loans secured by real estate | ||||||||||||||||||||
Commercial real estate (“CRE”) non-owner-occupied | $ | 2,774,650 | $ | 2,771,137 | $ | 2,729,785 | ||||||||||||||
Multifamily | 6,041,085 | 5,891,934 | 5,309,592 | |||||||||||||||||
Construction and land | 303,811 | 277,640 | 316,458 | |||||||||||||||||
SBA secured by real estate (1) | 42,642 | 46,917 | 56,381 | |||||||||||||||||
Total investor loans secured by real estate | 9,162,188 | 8,987,628 | 8,412,216 | |||||||||||||||||
Business loans secured by real estate (2) | ||||||||||||||||||||
CRE owner-occupied | 2,391,984 | 2,251,014 | 2,029,984 | |||||||||||||||||
Franchise real estate secured | 384,267 | 380,381 | 340,805 | |||||||||||||||||
SBA secured by real estate (3) | 68,466 | 69,184 | 73,967 | |||||||||||||||||
Total business loans secured by real estate | 2,844,717 | 2,700,579 | 2,444,756 | |||||||||||||||||
Commercial loans (4) | ||||||||||||||||||||
Commercial and industrial | 2,242,632 | 2,103,112 | 1,656,098 | |||||||||||||||||
Franchise non-real estate secured | 388,322 | 392,576 | 399,041 | |||||||||||||||||
SBA non-real estate secured | 10,761 | 11,045 | 14,908 | |||||||||||||||||
Total commercial loans | 2,641,715 | 2,506,733 | 2,070,047 | |||||||||||||||||
Retail loans | ||||||||||||||||||||
Single family residential (5) | 79,978 | 95,292 | 184,049 | |||||||||||||||||
Consumer | 5,157 | 5,665 | 6,324 | |||||||||||||||||
Total retail loans | 85,135 | 100,957 | 190,373 | |||||||||||||||||
Gross loans held for investment (6) | 14,733,755 | 14,295,897 | 13,117,392 | |||||||||||||||||
Allowance for credit losses for loans held for investment | (197,517) | (197,752) | (266,999) | |||||||||||||||||
Loans held for investment, net | $ | 14,536,238 | $ | 14,098,145 | $ | 12,850,393 | ||||||||||||||
Total unfunded loan commitments | $ | 2,940,370 | $ | 2,507,911 | $ | 2,243,650 | ||||||||||||||
Loans held for sale, at lower of cost or fair value | $ | 11,646 | $ | 10,869 | $ | 7,311 |
Three Months Ended | ||||||||||||||||||||
March 31, | December 31, | March 31, | ||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2021 | |||||||||||||||||
Investor loans secured by real estate | ||||||||||||||||||||
CRE non-owner-occupied | $ | 153,845 | $ | 94,740 | $ | 128,408 | ||||||||||||||
Multifamily | 454,652 | 552,600 | 407,156 | |||||||||||||||||
Construction and land | 213,206 | 94,343 | 94,124 | |||||||||||||||||
SBA secured by real estate (1) | 7,775 | — | — | |||||||||||||||||
Total investor loans secured by real estate | 829,478 | 741,683 | 629,688 | |||||||||||||||||
Business loans secured by real estate (2) | ||||||||||||||||||||
CRE owner-occupied | 246,405 | 147,322 | 110,353 | |||||||||||||||||
Franchise real estate secured | 21,060 | 52,034 | 24,429 | |||||||||||||||||
SBA secured by real estate (3) | 9,378 | 15,631 | 4,101 | |||||||||||||||||
Total business loans secured by real estate | 276,843 | 214,987 | 138,883 | |||||||||||||||||
Commercial loans (4) | ||||||||||||||||||||
Commercial and industrial | 317,728 | 469,018 | 352,530 | |||||||||||||||||
Franchise non-real estate secured | 28,090 | 43,219 | 17,647 | |||||||||||||||||
SBA non-real estate secured | 3,543 | 3,500 | 686 | |||||||||||||||||
Total commercial loans | 349,361 | 515,737 | 370,863 | |||||||||||||||||
Retail loans | ||||||||||||||||||||
Single family residential (5) | 6,310 | 6,800 | 13,353 | |||||||||||||||||
Consumer | — | 238 | 558 | |||||||||||||||||
Total retail loans | 6,310 | 7,038 | 13,911 | |||||||||||||||||
Total loan commitments | $ | 1,461,992 | $ | 1,479,445 | $ | 1,153,345 |
Three Months Ended March 31, 2022 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Beginning ACL Balance | Charge-offs | Recoveries | Provision for Credit Losses | Ending ACL Balance | ||||||||||||||||||||||||
Investor loans secured by real estate | |||||||||||||||||||||||||||||
CRE non-owner-occupied | $ | 37,380 | $ | — | $ | — | $ | (1,406) | $ | 35,974 | |||||||||||||||||||
Multifamily | 55,209 | — | — | (884) | 54,325 | ||||||||||||||||||||||||
Construction and land | 5,211 | — | — | 8 | 5,219 | ||||||||||||||||||||||||
SBA secured by real estate (1) | 3,201 | (70) | — | (81) | 3,050 | ||||||||||||||||||||||||
Business loans secured by real estate (2) | |||||||||||||||||||||||||||||
CRE owner-occupied | 29,575 | — | 10 | 2,306 | 31,891 | ||||||||||||||||||||||||
Franchise real estate secured | 7,985 | — | — | (8) | 7,977 | ||||||||||||||||||||||||
SBA secured by real estate (3) | 4,866 | — | — | 329 | 5,195 | ||||||||||||||||||||||||
Commercial loans (4) | |||||||||||||||||||||||||||||
Commercial and industrial | 38,136 | (2,179) | 1,841 | 800 | 38,598 | ||||||||||||||||||||||||
Franchise non-real estate secured | 15,084 | — | — | (780) | 14,304 | ||||||||||||||||||||||||
SBA non-real estate secured | 565 | (50) | 2 | (27) | 490 | ||||||||||||||||||||||||
Retail loans | |||||||||||||||||||||||||||||
Single family residential (5) | 255 | — | — | (22) | 233 | ||||||||||||||||||||||||
Consumer loans | 285 | — | — | (24) | 261 | ||||||||||||||||||||||||
Totals | $ | 197,752 | $ | (2,299) | $ | 1,853 | $ | 211 | $ | 197,517 |
March 31, | December 31, | March 31, | ||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2021 | |||||||||||||||||
Asset quality | ||||||||||||||||||||
Nonperforming loans | $ | 55,309 | $ | 31,273 | $ | 38,909 | ||||||||||||||
Other real estate owned | — | — | — | |||||||||||||||||
Nonperforming assets | $ | 55,309 | $ | 31,273 | $ | 38,909 | ||||||||||||||
Total classified assets (1) | $ | 122,528 | $ | 121,827 | $ | 134,667 | ||||||||||||||
Allowance for credit losses | 197,517 | 197,752 | 266,999 | |||||||||||||||||
Allowance for credit losses as a percent of total nonperforming loans | 357 | % | 632 | % | 686 | % | ||||||||||||||
Nonperforming loans as a percent of loans held for investment | 0.38 | 0.22 | 0.30 | |||||||||||||||||
Nonperforming assets as a percent of total assets | 0.26 | 0.15 | 0.19 | |||||||||||||||||
Classified loans to total loans held for investment | 0.83 | 0.85 | 1.03 | |||||||||||||||||
Classified assets to total assets | 0.57 | 0.58 | 0.67 | |||||||||||||||||
Net loan charge-offs (recoveries) for the quarter ended | $ | 446 | $ | (981) | $ | 1,334 | ||||||||||||||
Net loan charge-offs (recoveries) for the quarter to average total loans | — | % | (0.01) | % | 0.01 | % | ||||||||||||||
Allowance for credit losses to loans held for investment (2) | 1.34 | 1.38 | 2.04 | |||||||||||||||||
Delinquent loans | ||||||||||||||||||||
30 - 59 days | $ | 25,332 | $ | 1,395 | $ | 13,116 | ||||||||||||||
60 - 89 days | 74 | — | 61 | |||||||||||||||||
90+ days | 18,245 | 18,100 | 9,410 | |||||||||||||||||
Total delinquency | $ | 43,651 | $ | 19,495 | $ | 22,587 | ||||||||||||||
Delinquency as a percentage of loans held for investment | 0.30 | % | 0.14 | % | 0.17 | % |
March 31, | December 31, | March 31, | ||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2021 | |||||||||||||||||
Deposit accounts | ||||||||||||||||||||
Noninterest-bearing checking | $ | 7,106,548 | $ | 6,757,259 | $ | 6,302,703 | ||||||||||||||
Interest-bearing: | ||||||||||||||||||||
Checking | 3,679,067 | 3,493,331 | 3,155,071 | |||||||||||||||||
Money market/savings | 5,872,597 | 5,806,726 | 5,911,417 | |||||||||||||||||
Retail certificates of deposit | 1,031,011 | 1,058,273 | 1,353,431 | |||||||||||||||||
Wholesale/brokered certificates of deposit | — | — | 17,385 | |||||||||||||||||
Total interest-bearing | 10,582,675 | 10,358,330 | 10,437,304 | |||||||||||||||||
Total deposits | $ | 17,689,223 | $ | 17,115,589 | $ | 16,740,007 | ||||||||||||||
Cost of deposits | 0.04 | % | 0.04 | % | 0.11 | % | ||||||||||||||
Noninterest-bearing deposits as a percent of total deposits | 40.2 | 39.5 | 37.7 | |||||||||||||||||
Non-maturity deposits as a percent of total deposits | 94.2 | 93.8 | 91.8 | |||||||||||||||||
Core deposits as a percent of total deposits (1) | 97.3 | 97.1 | 96.2 |
March 31, | December 31, | March 31, | ||||||||||||||||||
Capital ratios | 2022 | 2021 | 2021 | |||||||||||||||||
Pacific Premier Bancorp, Inc. Consolidated | ||||||||||||||||||||
Tier 1 leverage ratio | 10.10 | % | 10.08 | % | 9.66 | % | ||||||||||||||
Common equity tier 1 capital ratio | 11.80 | 12.11 | 12.05 | |||||||||||||||||
Tier 1 capital ratio | 11.80 | 12.11 | 12.05 | |||||||||||||||||
Total capital ratio | 14.37 | 14.62 | 16.26 | |||||||||||||||||
Tangible common equity ratio (1) | 8.79 | 9.52 | 8.97 | |||||||||||||||||
Pacific Premier Bank | ||||||||||||||||||||
Tier 1 leverage ratio | 11.66 | % | 11.62 | % | 11.13 | % | ||||||||||||||
Common equity tier 1 capital ratio | 13.61 | 13.96 | 13.90 | |||||||||||||||||
Tier 1 capital ratio | 13.61 | 13.96 | 13.90 | |||||||||||||||||
Total capital ratio | 14.47 | 14.70 | 15.92 | |||||||||||||||||
Share data | ||||||||||||||||||||
Book value per share | $ | 29.31 | $ | 30.58 | $ | 28.56 | ||||||||||||||
Tangible book value per share (1) | 19.12 | 20.29 | 18.19 | |||||||||||||||||
Common equity dividends declared per share | 0.33 | 0.33 | 0.30 | |||||||||||||||||
Closing stock price (2) | 35.35 | 40.03 | 43.44 | |||||||||||||||||
Shares issued and outstanding | 94,945,849 | 94,389,543 | 94,644,415 | |||||||||||||||||
Market capitalization (2)(3) | $ | 3,356,336 | $ | 3,778,413 | $ | 4,111,353 |
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2021 | 2021 | 2021 | |||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 809,259 | $ | 304,703 | $ | 322,320 | $ | 631,888 | $ | 1,554,668 | ||||||||||||||||||||||
Interest-bearing time deposits with financial institutions | 2,216 | 2,216 | 2,708 | 2,708 | 2,708 | |||||||||||||||||||||||||||
Investments held-to-maturity, at amortized cost, net of allowance for credit losses | 996,382 | 381,674 | 170,576 | 18,933 | 21,931 | |||||||||||||||||||||||||||
Investment securities available-for-sale, at fair value | 3,222,095 | 4,273,864 | 4,709,815 | 4,487,447 | 3,857,337 | |||||||||||||||||||||||||||
FHLB, FRB, and other stock, at cost | 116,973 | 117,538 | 118,399 | 117,738 | 117,843 | |||||||||||||||||||||||||||
Loans held for sale, at lower of amortized cost or fair value | 11,646 | 10,869 | 8,100 | 4,714 | 7,311 | |||||||||||||||||||||||||||
Loans held for investment | 14,733,755 | 14,295,897 | 13,982,861 | 13,594,598 | 13,117,392 | |||||||||||||||||||||||||||
Allowance for credit losses | (197,517) | (197,752) | (211,481) | (232,774) | (266,999) | |||||||||||||||||||||||||||
Loans held for investment, net | 14,536,238 | 14,098,145 | 13,771,380 | 13,361,824 | 12,850,393 | |||||||||||||||||||||||||||
Accrued interest receivable | 60,922 | 65,728 | 63,228 | 67,529 | 65,098 | |||||||||||||||||||||||||||
Premises and equipment | 70,453 | 71,908 | 72,850 | 73,821 | 76,329 | |||||||||||||||||||||||||||
Deferred income taxes, net | 133,938 | 87,344 | 83,432 | 81,741 | 104,450 | |||||||||||||||||||||||||||
Bank owned life insurance | 451,968 | 449,353 | 447,135 | 444,645 | 292,932 | |||||||||||||||||||||||||||
Intangible assets | 65,978 | 69,571 | 73,451 | 77,363 | 81,364 | |||||||||||||||||||||||||||
Goodwill | 901,312 | 901,312 | 901,312 | 901,312 | 900,204 | |||||||||||||||||||||||||||
Other assets | 242,916 | 260,204 | 260,505 | 257,823 | 240,730 | |||||||||||||||||||||||||||
Total assets | $ | 21,622,296 | $ | 21,094,429 | $ | 21,005,211 | $ | 20,529,486 | $ | 20,173,298 | ||||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||||||
Deposit accounts: | ||||||||||||||||||||||||||||||||
Noninterest-bearing checking | $ | 7,106,548 | $ | 6,757,259 | $ | 6,841,495 | $ | 6,768,384 | $ | 6,302,703 | ||||||||||||||||||||||
Interest-bearing: | ||||||||||||||||||||||||||||||||
Checking | 3,679,067 | 3,493,331 | 3,477,902 | 3,103,343 | 3,155,071 | |||||||||||||||||||||||||||
Money market/savings | 5,872,597 | 5,806,726 | 6,037,532 | 5,883,672 | 5,911,417 | |||||||||||||||||||||||||||
Retail certificates of deposit | 1,031,011 | 1,058,273 | 1,113,070 | 1,259,698 | 1,353,431 | |||||||||||||||||||||||||||
Wholesale/brokered certificates of deposit | — | — | — | — | 17,385 | |||||||||||||||||||||||||||
Total interest-bearing | 10,582,675 | 10,358,330 | 10,628,504 | 10,246,713 | 10,437,304 | |||||||||||||||||||||||||||
Total deposits | 17,689,223 | 17,115,589 | 17,469,999 | 17,015,097 | 16,740,007 | |||||||||||||||||||||||||||
FHLB advances and other borrowings | 600,000 | 558,000 | 150,000 | — | 10,000 | |||||||||||||||||||||||||||
Subordinated debentures | 330,726 | 330,567 | 330,408 | 476,622 | 501,611 | |||||||||||||||||||||||||||
Accrued expenses and other liabilities | 219,329 | 203,962 | 216,688 | 224,348 | 218,582 | |||||||||||||||||||||||||||
Total liabilities | 18,839,278 | 18,208,118 | 18,167,095 | 17,716,067 | 17,470,200 | |||||||||||||||||||||||||||
STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||||
Common stock | 933 | 929 | 929 | 931 | 931 | |||||||||||||||||||||||||||
Additional paid-in capital | 2,348,727 | 2,351,294 | 2,347,626 | 2,352,112 | 2,348,445 | |||||||||||||||||||||||||||
Retained earnings | 577,591 | 541,950 | 488,385 | 433,852 | 368,911 | |||||||||||||||||||||||||||
Accumulated other comprehensive (loss) income | (144,233) | (7,862) | 1,176 | 26,524 | (15,189) | |||||||||||||||||||||||||||
Total stockholders' equity | 2,783,018 | 2,886,311 | 2,838,116 | 2,813,419 | 2,703,098 | |||||||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 21,622,296 | $ | 21,094,429 | $ | 21,005,211 | $ | 20,529,486 | $ | 20,173,298 |
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
March 31, | December 31, | March 31, | ||||||||||||||||||
(Dollars in thousands, except per share data) | 2022 | 2021 | 2021 | |||||||||||||||||
INTEREST INCOME | ||||||||||||||||||||
Loans | $ | 150,604 | $ | 157,418 | $ | 155,225 | ||||||||||||||
Investment securities and other interest-earning assets | 17,942 | 19,588 | 17,769 | |||||||||||||||||
Total interest income | 168,546 | 177,006 | 172,994 | |||||||||||||||||
INTEREST EXPENSE | ||||||||||||||||||||
Deposits | 1,673 | 1,694 | 4,426 | |||||||||||||||||
FHLB advances and other borrowings | 474 | 33 | 65 | |||||||||||||||||
Subordinated debentures | 4,560 | 4,560 | 6,851 | |||||||||||||||||
Total interest expense | 6,707 | 6,287 | 11,342 | |||||||||||||||||
Net interest income before provision for credit losses | 161,839 | 170,719 | 161,652 | |||||||||||||||||
Provision for credit losses | 448 | (14,648) | 1,974 | |||||||||||||||||
Net interest income after provision for credit losses | 161,391 | 185,367 | 159,678 | |||||||||||||||||
NONINTEREST INCOME | ||||||||||||||||||||
Loan servicing income | 419 | 505 | 458 | |||||||||||||||||
Service charges on deposit accounts | 2,615 | 2,590 | 2,032 | |||||||||||||||||
Other service fee income | 367 | 391 | 473 | |||||||||||||||||
Debit card interchange fee income | 836 | 769 | 787 | |||||||||||||||||
Earnings on bank owned life insurance | 3,221 | 3,521 | 2,233 | |||||||||||||||||
Net gain from sales of loans | 1,494 | 1,334 | 361 | |||||||||||||||||
Net gain from sales of investment securities | 2,134 | 3,585 | 4,046 | |||||||||||||||||
Trust custodial account fees | 11,579 | 11,611 | 7,222 | |||||||||||||||||
Escrow and exchange fees | 1,661 | 2,221 | 1,526 | |||||||||||||||||
Other income | 1,568 | 754 | 4,602 | |||||||||||||||||
Total noninterest income | 25,894 | 27,281 | 23,740 | |||||||||||||||||
NONINTEREST EXPENSE | ||||||||||||||||||||
Compensation and benefits | 56,981 | 56,076 | 52,548 | |||||||||||||||||
Premises and occupancy | 11,952 | 11,403 | 11,980 | |||||||||||||||||
Data processing | 5,996 | 5,881 | 5,828 | |||||||||||||||||
FDIC insurance premiums | 1,396 | 1,389 | 1,181 | |||||||||||||||||
Legal and professional services | 4,068 | 5,870 | 3,935 | |||||||||||||||||
Marketing expense | 1,809 | 1,821 | 1,598 | |||||||||||||||||
Office expense | 1,203 | 1,463 | 1,829 | |||||||||||||||||
Loan expense | 1,134 | 857 | 1,115 | |||||||||||||||||
Deposit expense | 3,751 | 3,836 | 3,859 | |||||||||||||||||
Merger-related expense | — | — | 5 | |||||||||||||||||
Amortization of intangible assets | 3,592 | 3,880 | 4,143 | |||||||||||||||||
Other expense | 5,766 | 4,776 | 4,468 | |||||||||||||||||
Total noninterest expense | 97,648 | 97,252 | 92,489 | |||||||||||||||||
Net income before income taxes | 89,637 | 115,396 | 90,929 | |||||||||||||||||
Income tax | 22,733 | 30,565 | 22,261 | |||||||||||||||||
Net income | $ | 66,904 | $ | 84,831 | $ | 68,668 | ||||||||||||||
EARNINGS PER SHARE | ||||||||||||||||||||
Basic | $ | 0.71 | $ | 0.90 | $ | 0.73 | ||||||||||||||
Diluted | $ | 0.70 | $ | 0.89 | $ | 0.72 | ||||||||||||||
WEIGHTED AVERAGE SHARES OUTSTANDING | ||||||||||||||||||||
Basic | 93,499,695 | 93,415,304 | 93,529,147 | |||||||||||||||||
Diluted | 93,946,074 | 93,906,491 | 94,093,644 |
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONSOLIDATED AVERAGE BALANCES AND YIELD DATA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2022 | December 31, 2021 | March 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 322,236 | $ | 90 | 0.11 | % | $ | 334,371 | $ | 66 | 0.08 | % | $ | 1,309,366 | $ | 301 | 0.09 | % | ||||||||||||||||||||||||||||||||||||||
Investment securities | 4,546,408 | 17,852 | 1.57 | 4,833,251 | 19,522 | 1.62 | 4,087,451 | 17,468 | 1.71 | |||||||||||||||||||||||||||||||||||||||||||||||
Loans receivable, net (1)(2) | 14,371,588 | 150,604 | 4.25 | 14,005,836 | 157,418 | 4.46 | 13,093,609 | 155,225 | 4.81 | |||||||||||||||||||||||||||||||||||||||||||||||
Total interest-earning assets | 19,240,232 | 168,546 | 3.55 | 19,173,458 | 177,006 | 3.66 | 18,490,426 | 172,994 | 3.79 | |||||||||||||||||||||||||||||||||||||||||||||||
Noninterest-earning assets | 1,716,559 | 1,693,547 | 1,503,834 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 20,956,791 | $ | 20,867,005 | $ | 19,994,260 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities and equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest checking | $ | 3,537,824 | $ | 229 | 0.03 | % | $ | 3,501,323 | $ | 225 | 0.03 | % | $ | 3,060,055 | $ | 419 | 0.06 | % | ||||||||||||||||||||||||||||||||||||||
Money market | 5,343,973 | 888 | 0.07 | 5,467,559 | 925 | 0.07 | 5,447,909 | 2,588 | 0.19 | |||||||||||||||||||||||||||||||||||||||||||||||
Savings | 422,186 | 26 | 0.02 | 418,218 | 27 | 0.03 | 368,288 | 82 | 0.09 | |||||||||||||||||||||||||||||||||||||||||||||||
Retail certificates of deposit | 1,047,451 | 530 | 0.21 | 1,084,326 | 517 | 0.19 | 1,425,093 | 1,201 | 0.34 | |||||||||||||||||||||||||||||||||||||||||||||||
Wholesale/brokered certificates of deposit | — | — | — | — | — | — | 118,854 | 136 | 0.46 | |||||||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 10,351,434 | 1,673 | 0.07 | 10,471,426 | 1,694 | 0.06 | 10,420,199 | 4,426 | 0.17 | |||||||||||||||||||||||||||||||||||||||||||||||
FHLB advances and other borrowings | 225,250 | 474 | 0.85 | 69,538 | 33 | 0.19 | 22,012 | 65 | 1.20 | |||||||||||||||||||||||||||||||||||||||||||||||
Subordinated debentures | 330,629 | 4,560 | 5.52 | 330,476 | 4,560 | 5.52 | 501,553 | 6,851 | 5.46 | |||||||||||||||||||||||||||||||||||||||||||||||
Total borrowings | 555,879 | 5,034 | 3.63 | 400,014 | 4,593 | 4.59 | 523,565 | 6,916 | 5.36 | |||||||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 10,907,313 | 6,707 | 0.25 | 10,871,440 | 6,287 | 0.23 | 10,943,764 | 11,342 | 0.42 | |||||||||||||||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | 6,928,872 | 6,911,702 | 6,034,319 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 256,219 | 232,863 | 266,536 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 18,092,404 | 18,016,005 | 17,244,619 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' equity | 2,864,387 | 2,851,000 | 2,749,641 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 20,956,791 | $ | 20,867,005 | $ | 19,994,260 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 161,839 | $ | 170,719 | $ | 161,652 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest margin (3) | 3.41 | % | 3.53 | % | 3.55 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of deposits (4) | 0.04 | 0.04 | 0.11 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of funds (5) | 0.15 | 0.14 | 0.27 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities | 176.40 | 176.37 | 168.96 |
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||
LOAN PORTFOLIO COMPOSITION | ||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||
March 31, | December 31, | September | June 30, | March 31, | ||||||||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2021 | 2021 | 2021 | |||||||||||||||||||||||||||
Investor loans secured by real estate | ||||||||||||||||||||||||||||||||
CRE non-owner-occupied | $ | 2,774,650 | $ | 2,771,137 | $ | 2,823,065 | $ | 2,810,233 | $ | 2,729,785 | ||||||||||||||||||||||
Multifamily | 6,041,085 | 5,891,934 | 5,705,666 | 5,539,464 | 5,309,592 | |||||||||||||||||||||||||||
Construction and land | 303,811 | 277,640 | 292,815 | 297,728 | 316,458 | |||||||||||||||||||||||||||
SBA secured by real estate (1) | 42,642 | 46,917 | 49,446 | 53,003 | 56,381 | |||||||||||||||||||||||||||
Total investor loans secured by real estate | 9,162,188 | 8,987,628 | 8,870,992 | 8,700,428 | 8,412,216 | |||||||||||||||||||||||||||
Business loans secured by real estate (2) | ||||||||||||||||||||||||||||||||
CRE owner-occupied | 2,391,984 | 2,251,014 | 2,242,164 | 2,089,300 | 2,029,984 | |||||||||||||||||||||||||||
Franchise real estate secured | 384,267 | 380,381 | 354,481 | 358,120 | 340,805 | |||||||||||||||||||||||||||
SBA secured by real estate (3) | 68,466 | 69,184 | 69,937 | 72,923 | 73,967 | |||||||||||||||||||||||||||
Total business loans secured by real estate | 2,844,717 | 2,700,579 | 2,666,582 | 2,520,343 | 2,444,756 | |||||||||||||||||||||||||||
Commercial loans (4) | ||||||||||||||||||||||||||||||||
Commercial and industrial | 2,242,632 | 2,103,112 | 1,888,870 | 1,795,144 | 1,656,098 | |||||||||||||||||||||||||||
Franchise non-real estate secured | 388,322 | 392,576 | 392,950 | 401,315 | 399,041 | |||||||||||||||||||||||||||
SBA non-real estate secured | 10,761 | 11,045 | 12,732 | 13,900 | 14,908 | |||||||||||||||||||||||||||
Total commercial loans | 2,641,715 | 2,506,733 | 2,294,552 | 2,210,359 | 2,070,047 | |||||||||||||||||||||||||||
Retail loans | ||||||||||||||||||||||||||||||||
Single family residential (5) | 79,978 | 95,292 | 144,309 | 157,228 | 184,049 | |||||||||||||||||||||||||||
Consumer | 5,157 | 5,665 | 6,426 | 6,240 | 6,324 | |||||||||||||||||||||||||||
Total retail loans | 85,135 | 100,957 | 150,735 | 163,468 | 190,373 | |||||||||||||||||||||||||||
Gross loans held for investment (6) | 14,733,755 | 14,295,897 | 13,982,861 | 13,594,598 | 13,117,392 | |||||||||||||||||||||||||||
Allowance for credit losses for loans held for investment | (197,517) | (197,752) | (211,481) | (232,774) | (266,999) | |||||||||||||||||||||||||||
Loans held for investment, net | $ | 14,536,238 | $ | 14,098,145 | $ | 13,771,380 | $ | 13,361,824 | $ | 12,850,393 | ||||||||||||||||||||||
Loans held for sale, at lower of cost or fair value | $ | 11,646 | $ | 10,869 | $ | 8,100 | $ | 4,714 | $ | 7,311 |
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||
ASSET QUALITY INFORMATION | ||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2021 | 2021 | 2021 | |||||||||||||||||||||||||||
Asset quality | ||||||||||||||||||||||||||||||||
Nonperforming loans | $ | 55,309 | $ | 31,273 | $ | 35,090 | $ | 34,387 | $ | 38,909 | ||||||||||||||||||||||
Other real estate owned | — | — | — | — | — | |||||||||||||||||||||||||||
Nonperforming assets | $ | 55,309 | $ | 31,273 | $ | 35,090 | $ | 34,387 | $ | 38,909 | ||||||||||||||||||||||
Total classified assets (1) | $ | 122,528 | $ | 121,827 | $ | 124,506 | $ | 131,350 | $ | 134,667 | ||||||||||||||||||||||
Allowance for credit losses | 197,517 | 197,752 | 211,481 | 232,774 | 266,999 | |||||||||||||||||||||||||||
Allowance for credit losses as a percent of total nonperforming loans | 357 | % | 632 | % | 603 | % | 677 | % | 686 | % | ||||||||||||||||||||||
Nonperforming loans as a percent of loans held for investment | 0.38 | 0.22 | 0.25 | 0.25 | 0.30 | |||||||||||||||||||||||||||
Nonperforming assets as a percent of total assets | 0.26 | 0.15 | 0.17 | 0.17 | 0.19 | |||||||||||||||||||||||||||
Classified loans to total loans held for investment | 0.83 | 0.85 | 0.89 | 0.97 | 1.03 | |||||||||||||||||||||||||||
Classified assets to total assets | 0.57 | 0.58 | 0.59 | 0.64 | 0.67 | |||||||||||||||||||||||||||
Net loan charge-offs (recoveries) for the quarter ended | $ | 446 | $ | (981) | $ | 1,750 | $ | 1,094 | $ | 1,334 | ||||||||||||||||||||||
Net loan charge-offs (recoveries) for the quarter to average total loans | — | % | (0.01) | % | 0.01 | % | 0.01 | % | 0.01 | % | ||||||||||||||||||||||
Allowance for credit losses to loans held for investment (2) | 1.34 | 1.38 | 1.51 | 1.71 | 2.04 | |||||||||||||||||||||||||||
Loans modified under the CARES Act | $ | — | $ | — | $ | — | $ | 819 | $ | — | ||||||||||||||||||||||
Loans modified under the CARES Act as a percent of loans held for investment | — | % | — | % | — | % | 0.01 | % | — | % | ||||||||||||||||||||||
Delinquent loans | ||||||||||||||||||||||||||||||||
30 - 59 days | $ | 25,332 | $ | 1,395 | $ | 728 | $ | 207 | $ | 13,116 | ||||||||||||||||||||||
60 - 89 days | 74 | — | 936 | 83 | 61 | |||||||||||||||||||||||||||
90+ days | 18,245 | 18,100 | 18,514 | 19,045 | 9,410 | |||||||||||||||||||||||||||
Total delinquency | $ | 43,651 | $ | 19,495 | $ | 20,178 | $ | 19,335 | $ | 22,587 | ||||||||||||||||||||||
Delinquency as a percent of loans held for investment | 0.30 | % | 0.14 | % | 0.14 | % | 0.14 | % | 0.17 | % |
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||
NONACCRUAL LOANS (1) | ||||||||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Collateral Dependent Loans | ACL | Non-Collateral Dependent Loans | ACL | Total Nonaccrual Loans | Nonaccrual Loans With No ACL | ||||||||||||||||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||||||||||||||||||||
Investor loans secured by real estate | ||||||||||||||||||||||||||||||||||||||
CRE non-owner-occupied | $ | 10,243 | $ | 1,152 | $ | — | $ | — | $ | 10,243 | $ | 2,627 | ||||||||||||||||||||||||||
SBA secured by real estate (2) | 573 | — | — | — | 573 | 573 | ||||||||||||||||||||||||||||||||
Total investor loans secured by real estate | 10,816 | 1,152 | — | — | 10,816 | 3,200 | ||||||||||||||||||||||||||||||||
Business loans secured by real estate (3) | ||||||||||||||||||||||||||||||||||||||
CRE owner-occupied | 4,901 | — | — | — | 4,901 | 4,901 | ||||||||||||||||||||||||||||||||
SBA secured by real estate (4) | 575 | — | — | — | 575 | 575 | ||||||||||||||||||||||||||||||||
Total business loans secured by real estate | 5,476 | — | — | — | 5,476 | 5,476 | ||||||||||||||||||||||||||||||||
Commercial loans (5) | ||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 26,588 | — | — | — | 26,588 | 26,588 | ||||||||||||||||||||||||||||||||
Franchise non-real estate secured | — | — | 11,779 | — | 11,779 | 11,779 | ||||||||||||||||||||||||||||||||
SBA not secured by real estate | 642 | — | — | — | 642 | 642 | ||||||||||||||||||||||||||||||||
Total commercial loans | 27,230 | — | 11,779 | — | 39,009 | 39,009 | ||||||||||||||||||||||||||||||||
Retail loans | ||||||||||||||||||||||||||||||||||||||
Single family residential (6) | 8 | — | — | — | 8 | 8 | ||||||||||||||||||||||||||||||||
Total retail loans | 8 | — | — | — | 8 | 8 | ||||||||||||||||||||||||||||||||
Totals nonaccrual loans | $ | 43,530 | $ | 1,152 | $ | 11,779 | $ | — | $ | 55,309 | $ | 47,693 |
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||
PAST DUE STATUS | ||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||
Days Past Due | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Current | 30-59 | 60-89 | 90+ | Total | |||||||||||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||||||||||||||
Investor loans secured by real estate | ||||||||||||||||||||||||||||||||
CRE non-owner-occupied | $ | 2,762,632 | $ | — | $ | — | $ | 12,018 | $ | 2,774,650 | ||||||||||||||||||||||
Multifamily | 6,041,085 | — | — | — | 6,041,085 | |||||||||||||||||||||||||||
Construction and land | 303,811 | — | — | — | 303,811 | |||||||||||||||||||||||||||
SBA secured by real estate (1) | 42,642 | — | — | — | 42,642 | |||||||||||||||||||||||||||
Total investor loans secured by real estate | 9,150,170 | — | — | 12,018 | 9,162,188 | |||||||||||||||||||||||||||
Business loans secured by real estate (2) | ||||||||||||||||||||||||||||||||
CRE owner-occupied | 2,387,083 | — | — | 4,901 | 2,391,984 | |||||||||||||||||||||||||||
Franchise real estate secured | 384,267 | — | — | — | 384,267 | |||||||||||||||||||||||||||
SBA secured by real estate (3) | 68,025 | — | — | 441 | 68,466 | |||||||||||||||||||||||||||
Total business loans secured by real estate | 2,839,375 | — | — | 5,342 | 2,844,717 | |||||||||||||||||||||||||||
Commercial loans (4) | ||||||||||||||||||||||||||||||||
Commercial and industrial | 2,216,983 | 25,332 | 74 | 243 | 2,242,632 | |||||||||||||||||||||||||||
Franchise non-real estate secured | 388,322 | — | — | — | 388,322 | |||||||||||||||||||||||||||
SBA not secured by real estate | 10,119 | — | — | 642 | 10,761 | |||||||||||||||||||||||||||
Total commercial loans | 2,615,424 | 25,332 | 74 | 885 | 2,641,715 | |||||||||||||||||||||||||||
Retail loans | ||||||||||||||||||||||||||||||||
Single family residential (5) | 79,978 | — | — | — | 79,978 | |||||||||||||||||||||||||||
Consumer loans | 5,157 | — | — | — | 5,157 | |||||||||||||||||||||||||||
Total retail loans | 85,135 | — | — | — | 85,135 | |||||||||||||||||||||||||||
Total loans | $ | 14,690,104 | $ | 25,332 | $ | 74 | $ | 18,245 | $ | 14,733,755 |
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||
CREDIT RISK GRADES | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
(Dollars in thousands) | Pass | Special Mention | Substandard | Total Gross Loans | ||||||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||||||||
Investor loans secured by real estate | ||||||||||||||||||||||||||
CRE non-owner-occupied | $ | 2,735,537 | $ | 9,878 | $ | 29,235 | $ | 2,774,650 | ||||||||||||||||||
Multifamily | 6,040,325 | — | 760 | 6,041,085 | ||||||||||||||||||||||
Construction and land | 303,811 | — | — | 303,811 | ||||||||||||||||||||||
SBA secured by real estate (1) | 33,789 | — | 8,853 | 42,642 | ||||||||||||||||||||||
Total investor loans secured by real estate | 9,113,462 | 9,878 | 38,848 | 9,162,188 | ||||||||||||||||||||||
Business loans secured by real estate (2) | ||||||||||||||||||||||||||
CRE owner-occupied | 2,368,845 | 764 | 22,375 | 2,391,984 | ||||||||||||||||||||||
Franchise real estate secured | 384,267 | — | — | 384,267 | ||||||||||||||||||||||
SBA secured by real estate (3) | 59,998 | — | 8,468 | 68,466 | ||||||||||||||||||||||
Total business loans secured by real estate | 2,813,110 | 764 | 30,843 | 2,844,717 | ||||||||||||||||||||||
Commercial loans (4) | ||||||||||||||||||||||||||
Commercial and industrial | 2,209,517 | 1,011 | 32,104 | 2,242,632 | ||||||||||||||||||||||
Franchise non-real estate secured | 369,292 | — | 19,030 | 388,322 | ||||||||||||||||||||||
SBA not secured by real estate | 9,042 | 66 | 1,653 | 10,761 | ||||||||||||||||||||||
Total commercial loans | 2,587,851 | 1,077 | 52,787 | 2,641,715 | ||||||||||||||||||||||
Retail loans | ||||||||||||||||||||||||||
Single family residential (5) | 79,932 | — | 46 | 79,978 | ||||||||||||||||||||||
Consumer loans | 5,153 | — | 4 | 5,157 | ||||||||||||||||||||||
Total retail loans | 85,085 | — | 50 | 85,135 | ||||||||||||||||||||||
Total loans | $ | 14,599,508 | $ | 11,719 | $ | 122,528 | $ | 14,733,755 |
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||
GAAP to Non-GAAP RECONCILIATIONS | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
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, 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. | ||||||||||||||||||||
For periods presented below, return on average tangible common equity is a non-GAAP financial measure derived from GAAP based amounts. We calculate this figure by excluding amortization of intangible assets expense from net income and excluding the average intangible assets 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 | ||||||||||||||||||||
March 31, | December 31, | March 31, | ||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2021 | |||||||||||||||||
Net income | $ | 66,904 | $ | 84,831 | $ | 68,668 | ||||||||||||||
Plus: amortization of intangible assets expense | 3,592 | 3,880 | 4,143 | |||||||||||||||||
Less: amortization of intangible assets expense tax adjustment (1) | 1,025 | 1,107 | 1,185 | |||||||||||||||||
Net income for average tangible common equity | 69,471 | 87,604 | 71,626 | |||||||||||||||||
Plus: merger-related expense | — | — | 5 | |||||||||||||||||
Less: merger-related expense tax adjustment (1) | — | — | 1 | |||||||||||||||||
Net income for average tangible common equity excluding merger-related expense | $ | 69,471 | $ | 87,604 | $ | 71,630 | ||||||||||||||
Average stockholders' equity | $ | 2,864,387 | $ | 2,851,000 | $ | 2,749,641 | ||||||||||||||
Less: average intangible assets | 68,157 | 71,897 | 83,946 | |||||||||||||||||
Less: average goodwill | 901,312 | 901,312 | 898,587 | |||||||||||||||||
Average tangible common equity | $ | 1,894,918 | $ | 1,877,791 | $ | 1,767,108 | ||||||||||||||
Return on average equity (annualized) | 9.34 | % | 11.90 | % | 9.99 | % | ||||||||||||||
Return on average tangible common equity (annualized) | 14.66 | % | 18.66 | % | 16.21 | % | ||||||||||||||
Return on average tangible common equity excluding merger-related expense (annualized) | 14.66 | % | 18.66 | % | 16.21 | % |
For periods presented below, return on average assets excluding merger-related expense is a non-GAAP financial measure derived from GAAP based amounts. We calculate this figure by excluding merger-related expense and the related tax impact from net income. 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 | ||||||||||||||||||||
March 31, | December 31, | March 31, | ||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2021 | |||||||||||||||||
Net income | $ | 66,904 | $ | 84,831 | $ | 68,668 | ||||||||||||||
Plus: merger-related expense | — | — | 5 | |||||||||||||||||
Less: merger-related expense tax adjustment (1) | — | — | 1 | |||||||||||||||||
Net income for average assets excluding merger-related expense | $ | 66,904 | $ | 84,831 | $ | 68,672 | ||||||||||||||
Average assets | $ | 20,956,791 | $ | 20,867,005 | $ | 19,994,260 | ||||||||||||||
Return on average assets (annualized) | 1.28 | % | 1.63 | % | 1.37 | % | ||||||||||||||
Return on average assets excluding merger-related expense (annualized) | 1.28 | % | 1.63 | % | 1.37 | % |
Pre-provision net revenue is a non-GAAP financial measure derived from GAAP-based amounts. We calculate the pre-provision net revenue by excluding income tax, provision for credit losses, and merger-related expenses from net income. 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 and a better comparison to the financial results of prior periods. | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
March 31, | December 31, | March 31, | ||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2021 | |||||||||||||||||
Interest income | $ | 168,546 | $ | 177,006 | $ | 172,994 | ||||||||||||||
Interest expense | 6,707 | 6,287 | 11,342 | |||||||||||||||||
Net interest income | 161,839 | 170,719 | 161,652 | |||||||||||||||||
Noninterest income | 25,894 | 27,281 | 23,740 | |||||||||||||||||
Revenue | 187,733 | 198,000 | 185,392 | |||||||||||||||||
Noninterest expense | 97,648 | 97,252 | 92,489 | |||||||||||||||||
Add: merger-related expense | — | — | 5 | |||||||||||||||||
Pre-provision net revenue | 90,085 | 100,748 | 92,908 | |||||||||||||||||
Pre-provision net revenue (annualized) | $ | 360,340 | $ | 402,992 | $ | 371,632 | ||||||||||||||
Average assets | $ | 20,956,791 | $ | 20,867,005 | $ | 19,994,260 | ||||||||||||||
Pre-provision net revenue on average assets | 0.43 | % | 0.48 | % | 0.46 | % | ||||||||||||||
Pre-provision net revenue on average assets (annualized) | 1.72 | % | 1.93 | % | 1.86 | % |
Noninterest expense (excluding merger-related expense) as a percent of average assets is a non-GAAP financial measure derived from GAAP-based amounts. We calculate the noninterest expense (excluding merger-related expense) as a percent of average assets by excluding merger-related expenses from the noninterest expense and dividing by average 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 and a better comparison to the financial results of prior periods. | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
March 31, | December 31, | March 31, | ||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2021 | |||||||||||||||||
Noninterest expense | $ | 97,648 | $ | 97,252 | $ | 92,489 | ||||||||||||||
Less: merger-related expense | — | — | 5 | |||||||||||||||||
Noninterest expense excluding merger-related expense | $ | 97,648 | $ | 97,252 | $ | 92,484 | ||||||||||||||
Average assets | $ | 20,956,791 | $ | 20,867,005 | $ | 19,994,260 | ||||||||||||||
Noninterest expense as a percent of average assets (annualized) | 1.86 | % | 1.86 | % | 1.85 | % | ||||||||||||||
Noninterest expense excluding merger-related expense as a percent of average assets (annualized) | 1.86 | % | 1.86 | % | 1.85 | % |
Tangible book value per share and tangible common equity to tangible assets (the “tangible common equity ratio”) are non-GAAP financial measures derived from 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 excludes 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. | ||||||||||||||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | 2022 | 2021 | 2021 | 2021 | 2021 | |||||||||||||||||||||||||||
Total stockholders' equity | $ | 2,783,018 | $ | 2,886,311 | $ | 2,838,116 | $ | 2,813,419 | $ | 2,703,098 | ||||||||||||||||||||||
Less: intangible assets | 967,290 | 970,883 | 974,763 | 978,675 | 981,568 | |||||||||||||||||||||||||||
Tangible common equity | $ | 1,815,728 | $ | 1,915,428 | $ | 1,863,353 | $ | 1,834,744 | $ | 1,721,530 | ||||||||||||||||||||||
Total assets | $ | 21,622,296 | $ | 21,094,429 | $ | 21,005,211 | $ | 20,529,486 | $ | 20,173,298 | ||||||||||||||||||||||
Less: intangible assets | 967,290 | 970,883 | 974,763 | 978,675 | 981,568 | |||||||||||||||||||||||||||
Tangible assets | $ | 20,655,006 | $ | 20,123,546 | $ | 20,030,448 | $ | 19,550,811 | $ | 19,191,730 | ||||||||||||||||||||||
Tangible common equity ratio | 8.79 | % | 9.52 | % | 9.30 | % | 9.38 | % | 8.97 | % | ||||||||||||||||||||||
Common shares issued and outstanding | 94,945,849 | 94,389,543 | 94,354,211 | 94,656,575 | 94,644,415 | |||||||||||||||||||||||||||
Book value per share | $ | 29.31 | $ | 30.58 | $ | 30.08 | $ | 29.72 | $ | 28.56 | ||||||||||||||||||||||
Less: intangible book value per share | 10.19 | 10.29 | 10.33 | 10.34 | 10.37 | |||||||||||||||||||||||||||
Tangible book value per share | $ | 19.12 | $ | 20.29 | $ | 19.75 | $ | 19.38 | $ | 18.19 |
Core net interest income and core net interest margin are non-GAAP financial measures derived from GAAP based amounts. We calculate core net interest income by excluding scheduled accretion income, accelerated accretion income, premium amortization on CDs, nonrecurring nonaccrual interest paid, and gain (loss) on interest rate contract in fair value hedging relationships 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 | ||||||||||||||||||||
March 31, | December 31, | March 31, | ||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2021 | |||||||||||||||||
Net interest income | $ | 161,839 | $ | 170,719 | $ | 161,652 | ||||||||||||||
Less: scheduled accretion income | 2,857 | 3,097 | 3,878 | |||||||||||||||||
Less: accelerated accretion income | 3,083 | 4,770 | 5,988 | |||||||||||||||||
Less: premium amortization on CD | 96 | 183 | 1,751 | |||||||||||||||||
Less: nonrecurring nonaccrual interest paid | (356) | 349 | (603) | |||||||||||||||||
Less: loss on fair value hedging relationships | $ | (1,667) | $ | (819) | $ | — | ||||||||||||||
Core net interest income | $ | 157,826 | $ | 163,139 | $ | 150,638 | ||||||||||||||
Average interest-earning assets | $ | 19,240,232 | $ | 19,173,458 | $ | 18,490,426 | ||||||||||||||
Net interest margin | 3.41 | % | 3.53 | % | 3.55 | % | ||||||||||||||
Core net interest margin | 3.33 | % | 3.38 | % | 3.30 | % | ||||||||||||||
Efficiency ratio is a non-GAAP financial measure derived from GAAP-based amounts. This figure represents the ratio of noninterest expense, less amortization of intangible assets and merger-related expense, to the sum of net interest income before provision for credit losses and total noninterest income, less gain (loss) on sale of securities, other income - security recoveries, and gain (loss) from debt extinguishment. 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 | ||||||||||||||||||||
March 31, | December 31, | March 31, | ||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2021 | |||||||||||||||||
Total noninterest expense | $ | 97,648 | $ | 97,252 | $ | 92,489 | ||||||||||||||
Less: amortization of intangible assets | 3,592 | 3,880 | 4,143 | |||||||||||||||||
Less: merger-related expense | — | — | 5 | |||||||||||||||||
Noninterest expense, adjusted | $ | 94,056 | $ | 93,372 | $ | 88,341 | ||||||||||||||
Net interest income before provision for credit losses | $ | 161,839 | $ | 170,719 | $ | 161,652 | ||||||||||||||
Add: total noninterest income | 25,894 | 27,281 | 23,740 | |||||||||||||||||
Less: net gain from investment securities | 2,134 | 3,585 | 4,046 | |||||||||||||||||
Less: other income - security recoveries | — | 1 | 2 | |||||||||||||||||
Less: net loss from debt extinguishment | — | — | (503) | |||||||||||||||||
Revenue, adjusted | $ | 185,599 | $ | 194,414 | $ | 181,847 | ||||||||||||||
Efficiency ratio | 50.7 | % | 48.0 | % | 48.6 | % |
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