EX-99.1 2 pp2475ex991.htm

Exhibit 99.1

Pacific Premier Bancorp, Inc. Announces First Quarter 2005 Results

          COSTA MESA, Calif., April 21 /PRNewswire-FirstCall/ -- Pacific Premier Bancorp, Inc. (Nasdaq: PPBI) (the “Company”), the holding company of Pacific Premier Bank, F.S.B. (the “Bank”), announced first quarter earnings of $1.6 million, or $0.24 per diluted share, compared with $2.9 million, or $0.44 per diluted share from a year ago.  The year ago results included a one time gain of $1.6 million from the sale of one of three residual interest components which comprised the Company’s Participation Contract.  Excluding the aforementioned gain from last year’s results, net income for the first quarter of 2005 increased $294,000 or 22% over last year’s results.  All diluted earnings per share amounts have been adjusted to reflect the dilutive effect of all warrants and stock options outstanding.

          Return on average assets (ROAA) for the quarter ended March 31, 2005 was 1.18%, compared to 3.53% for the same period in 2004.  The Company’s return on average equity (ROAE) for the quarter ended March 31, 2005 was 14.58%, compared to 30.80% for the quarter ended March 31, 2004.  The Company’s basic and diluted book value per share increased to $8.65 and $7.28, respectively, at March 31, 2005, reflecting an annualized increase of 13.4% and 11.3% from December 31, 2004.

          Steven R. Gardner, President and Chief Executive Officer, stated “Highlights of the first quarter reflect the implementation of our community banking business model which includes further diversification in our loan portfolio through the origination of higher yielding commercial real estate and commercial business loans.  During the quarter, our bankers generated $69.4 million in new loans which included $18.9 million of commercial real estate secured loans and $844,000 of commercial business loans.  Our pipeline of $81.4 million at quarter end included $44.0 million and $2.2 million of commercial real estate and commercial business loans, respectively.  During the first quarter, we hired two additional experienced business banking officers who brought with them relationships that they have developed over the past several years within our primary markets.  We will continue to aggressively recruit experienced bankers that share our passion of serving Southern California business owners’ credit and banking needs.”

          For the quarter ended March 31, 2005, net interest income increased to $4.1 million from $3.8 million for the same period a year earlier.  The increase was attributable to an increase of $224.0 million in average loans outstanding, which was partially offset by increases in average borrowings and deposits of $159.8 million and $54.5 million, respectively.  Additionally, the quarter ended March 31, 2004 included interest income of $902,000 generated from the Participation Contract, which was eliminated in 2004.

          The net interest margin for the quarter ended March 31, 2005 was 3.06% compared to 4.81% for the same period a year ago.  The elimination of the Participation Contract interest income represents 61.1% of the decrease in the net interest margin.  The remaining decrease was primarily attributable to a decrease in the average yield on net loans of 54 basis points and an increase in the average cost of funds of 43 basis points.  The decrease in loan yield is primarily due to the origination of short-term adjustable rate loans and the prepayment of the Bank’s discontinued higher yielding subprime loans.  The increase in the cost of funds is attributable to the overall rising interest rate environment.


          For the quarter ended March 31, 2005, the Company’s provision for loan losses totaled $145,000, compared with $57,000 for the same period a year earlier.  The increase is primarily attributable to the significant growth in the Bank’s loan portfolio of $51.1 million since December 31, 2004.  Net charge-offs for the quarter were $4,000, while for the same period in 2004 there were net recoveries of $13,000.

          For the quarter ended March 31, 2005, total noninterest income decreased to $626,000 compared with $2.0 million for the same period a year ago.  The decrease for the quarter was primarily the result of the $1.6 million gain from the sale of one residual interest component of the Participation Contract in 2004, which was partially offset by an increase in other income of $176,000 and net gain from loan sales of $69,000.

          Noninterest expense for the quarter ended March 31, 2005 was $2.8 million, a $46,000 increase compared to the same period in the prior year.  The increase in noninterest expense was the result of an increase in compensation and benefits of $267,000, which was partially offset by decreases in nearly all other noninterest expense categories.  At March 31, 2005, the Company had 75 full-time equivalent employees compared to 72 at March 31, 2004.

          The Company’s tax provision for the quarter ended March 31, 2005 was $156,000, which was comprised of $716,000 of current income tax that was partially offset by a $500,000 reduction in the valuation allowance for the deferred tax asset.  The remaining valuation allowance balance at March 31, 2005 was $3.5 million.

          Total assets of the Company were $587.2 million as of March 31, 2005, compared to $543.1 million as of December 31, 2004. The $44.1 million or 8.1% increase in total assets was the result of an increase of $51.0 million in net loans, which was partially offset by a decrease in federal funds sold of $10.9 million.  The increase in net loans was the result of $69.4 million in new adjustable rate loans originated during the quarter, which was partially offset by $8.1 million of multi-family loans which were sold for a net gain of $69,000.

          The allowance for loan losses increased by $141,000 to $2.8 million as of March 31, 2005 compared to December 31, 2004.  The allowance for loan losses as a percent of non-accrual loans was 142% and 111% as of March 31, 2005 and December 31, 2004, respectively.  Non-accrual loans and other real estate owned were $1.7 million and $264,000, respectively, at March 31, 2005, compared to $2.1 million and $351,000, respectively, as of December 31, 2004. The ratio of net nonperforming assets to total assets at March 31, 2005 was 0.34%.  All nonperforming assets are concentrated in the Bank’s single family residential loans and associated with its prior origination of sub-prime mortgages, which were discontinued in 2000.

          Total deposits were $290.4 million as of March 31, 2005, compared to $288.9 million at December 31, 2004.  The increase in deposits is comprised of an increase of $2.5 million in transaction accounts, which was partially offset by a decrease in certificates of deposits of $1.0 million.  The cost of deposits as of March 31, 2005 was 2.50%, an increase of 32 basis points since December 31, 2004.


          At March 31, 2005, total borrowings of the Company were comprised of the Bank’s $159.0 million and $68.6 million of FHLB term borrowings and overnight advances, respectively, $10.5 million of other borrowings and the Company’s $10.3 million of subordinated debentures which were used to fund the issuance of trust preferred securities.  The total cost of the Company’s borrowings and deposits at March 31, 2005 was 2.66% compared to 2.33% at December 31, 2004.

          The Bank’s tier 1 (core) capital and total risk-based capital ratios at March 31, 2005 were 8.65% and 13.02%, respectively.  The minimum ratios for well-capitalized banks are 5.00% and 10.00% for tier 1 (core) capital and risk-based capital, respectively.

          The Company owns all of the capital stock of the Bank, a federal savings bank.  Since 2002, the Bank has successfully implemented a community banking business model.  We currently provide business and consumer banking products to our customers through our three branches in Southern California located in the cities of San Bernardino, Seal Beach and Huntington Beach.  The Bank at March 31, 2005, had total assets of $584.0 million, net loans of $521.1 million, total deposits of $292.8 million, and total equity capital of $50.4 million.

          FORWARD-LOOKING COMMENTS

          The statements contained herein that are not historical facts are forward looking statements based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting the Company will be the same as those anticipated by management. Actual results may differ from those projected in the forward-looking statements. These forward-looking statements involve risks and uncertainties. These include, but are not limited to, the following risks: (1) changes in the performance of the financial markets, (2) changes in the demand for and market acceptance of the Company’s products and services, (3) changes in general economic conditions including interest rates, presence of competitors with greater financial resources, and the impact of competitive projects and pricing, (4) the effect of the Company’s policies, (5) the continued availability of adequate funding sources, and (6) various legal, regulatory and litigation risks.

          ANNUAL MEETING

          The Board of Directors has established April 1, 2005, as the record date for determining stockholders entitled to receive notice of, to attend and to vote at, the Annual Meeting or any postponement or adjournment thereof.  Only record holders of Common Stock of the Company at the close of business on such record date will be entitled to vote at the Annual Meeting or any postponement or adjournment thereof.  The annual meeting will be held on Wednesday, May 25, 2005, at 9:00 a.m., Pacific Time, at the corporate headquarters of the Bank located at 1600 Sunflower Avenue, 2nd Floor, Costa Mesa, California, 92626.


 

Contact:

 

Pacific Premier Bancorp, Inc.

 

 

 

Steven R. Gardner

 

President/CEO

 

714.431.4000

 

 

 

John Shindler

 

Executive Vice President/CFO

 

714.431.4000

PACIFIC PREMIER BANCORP AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET
(In thousands)

 

 

March 31,
2005

 

December 31,
2004

 

 

 

 

 

 

 

(Unaudited)

 

(Audited)

 

ASSETS

 

 

 

 

 

 

 

Cash and due from banks

 

$

4,542

 

$

3,003

 

Federal Funds Sold

 

 

2,100

 

 

13,000

 

Cash and cash equivalents

 

 

6,642

 

 

16,003

 

Investment securities available for sale

 

 

36,170

 

 

36,455

 

Investment securities held to maturity

 

 

10,697

 

 

8,389

 

Loans held for sale

 

 

510

 

 

532

 

Loans held for investment, net of allowance for loan losses of $2,767 in 2005 and $2,626 in 2004 respectively

 

 

520,798

 

 

469,822

 

Accrued interest receivable

 

 

2,341

 

 

1,938

 

Foreclosed real estate

 

 

264

 

 

351

 

Premises and equipment

 

 

5,132

 

 

5,243

 

Deferred income taxes

 

 

3,486

 

 

3,473

 

Other assets

 

 

1,179

 

 

918

 

Total assets

 

$

587,219

 

$

543,124

 

LIABILITIES AND STOCKHOLDERS’ EQUITY LIABILITIES:

 

 

 

 

 

 

 

Deposit accounts

 

$

290,410

 

$

288,887

 

Other borrowings

 

 

238,100

 

 

196,400

 

Subordinated debentures

 

 

10,310

 

 

10,310

 

Accrued expenses and other liabilities

 

 

2,891

 

 

3,499

 

Total liabilities

 

 

541,711

 

 

499,096

 

STOCKHOLDERS’ EQUITY:

 

 

 

 

 

 

 

Common stock, $.01 par value

 

 

53

 

 

53

 

Additional paid-in capital

 

 

67,564

 

 

67,564

 

Accumulated deficit

 

 

(21,646

)

 

(23,280

)

Unrealized loss on available for sale securities, net of tax

 

 

(463

)

 

(309

)

Total stockholders’ equity

 

 

45,508

 

 

44,028

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

587,219

 

$

543,124

 


PACIFIC PREMIER BANCORP AND SUBSIDIARY
CONSOLIDATED INCOME STATEMENT
UNAUDITED (In thousands, except per share data)

 

 

Three Months Ended

 

 

 

 

 

 

March 31,
2005

 

March 31,
2004

 

 

 

 

 

INTEREST INCOME:

 

 

 

 

 

 

 

Loans

 

$

6,767

 

$

4,053

 

Other interest-earning assets

 

 

440

 

 

1,212

 

Total interest income

 

 

7,207

 

 

5,265

 

INTEREST EXPENSE:

 

 

 

 

 

 

 

Interest-bearing deposits

 

 

1,680

 

 

1,218

 

Other borrowings

 

 

1,266

 

 

232

 

Subordinated debentures

 

 

135

 

 

8

 

Total interest expense

 

 

3,081

 

 

1,458

 

NET INTEREST INCOME

 

 

4,126

 

 

3,807

 

PROVISION FOR LOAN LOSSES

 

 

145

 

 

57

 

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES

 

 

3,981

 

 

3,750

 

NONINTEREST INCOME:

 

 

 

 

 

 

 

Loan servicing fee income

 

 

152

 

 

144

 

Bank and other fee income

 

 

128

 

 

141

 

Net gain from loan sales

 

 

69

 

 

—  

 

Net gain from investment securities

 

 

—  

 

 

1,573

 

Other income

 

 

277

 

 

101

 

Total noninterest income

 

 

626

 

 

1,959

 

NONINTEREST EXPENSE:

 

 

 

 

 

 

 

Compensation and benefits

 

 

1,889

 

 

1,622

 

Premises and occupancy

 

 

322

 

 

363

 

Data processing

 

 

83

 

 

79

 

Net (gain) loss on foreclosed real estate

 

 

(9

)

 

18

 

Other expense

 

 

532

 

 

689

 

Total noninterest expense

 

 

2,817

 

 

2,771

 

NET INCOME BEFORE TAXES

 

 

1,790

 

 

2,938

 

PROVISION FOR INCOME TAXES

 

 

156

 

 

12

 

NET INCOME

 

$

1,634

 

$

2,926

 

Basic Average Shares Outstanding

 

 

5,258,738

 

 

5,255,072

 

Basic Earnings per Share

 

$

0.31

 

$

0.56

 

Diluted Average Shares Outstanding

 

 

6,699,788

 

 

6,575,431

 

Diluted Earnings per Share

 

$

0.24

 

$

0.44

 


PACIFIC PREMIER BANCORP AND SUBSIDIARY
Statistical Information
UNAUDITED (In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

As of
March 31,
2005

 

As of
December 31,
2004

 

As of
March 31,
2004

 

 

 

 

 

 

Asset Quality:

 

 

 

 

 

 

 

 

 

 

Non-accrual loans, net of specific allowance

 

$

1,734

 

$

2,127

 

$

1,848

 

Real estate owned

 

$

264

 

$

351

 

$

701

 

Nonperforming assets, net of specific allowance

 

$

1,998

 

$

2,477

 

$

2,549

 

Net charge-offs (recoveries) for the quarter ended

 

$

4

 

$

22

 

$

(13

)

Allowance for loan losses

 

$

2,767

 

$

2,626

 

$

2,060

 

Net charge-offs to average loans, annualized

 

 

—  

 

 

0.02

%

 

(0.02

)%

Net non-accrual loans to total loans

 

 

0.33

%

 

0.45

%

 

0.39

%

Net non-accrual loans to total assets

 

 

0.30

%

 

0.39

%

 

0.34

%

Net non-performing assets to total assets

 

 

0.34

%

 

0.46

%

 

0.68

%

Allowance for loan losses to total loans

 

 

0.53

%

 

0.56

%

 

0.69

%

Allowance for loan losses to non- accrual loans

 

 

142.06

%

 

110.77

%

 

96.58

%

Average Balance Sheet: for the Quarter ended

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

554,062

 

$

498,054

 

$

331,118

 

Loans

 

$

492,721

 

$

438,727

 

$

268,740

 

Deposits

 

$

290,482

 

$

282,491

 

$

236,005

 

Borrowings

 

$

204,250

 

$

156,964

 

$

54,007

 

Subordinated debentures

 

$

10,310

 

$

10,310

 

$

773

 

Share Data:

 

 

 

 

 

 

 

 

 

 

Basic book value

 

$

8.65

 

$

8.37

 

$

7.69

 

Diluted book value

 

$

7.28

 

$

7.08

 

$

6.46

 

Closing stock price

 

$

11.00

 

$

13.26

 

$

13.45

 

Pacific Premier Bank Capital:

 

 

 

 

 

 

 

 

 

 

Tier 1 (core) capital

 

$

50,498

 

$

49,071

 

$

32,619

 

Tier 1 (core) capital ratio

 

 

8.65

%

 

9.09

%

 

8.86

%

Total risk-based capital ratio

 

 

13.02

%

 

13.59

%

 

13.71

%

Loan Portfolio

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

Multi-family

 

$

426,784

 

$

394,582

 

$

239,797

 

Commercial

 

 

75,025

 

 

54,502

 

 

23,324

 

One-to-four family

 

 

19,853

 

 

22,347

 

 

32,832

 

Commercial business loans

 

 

844

 

 

103

 

 

—  

 

Other loans

 

 

77

 

 

75

 

 

1,344

 

Total gross loans

 

$

522,583

 

$

471,609

 

$

297,297

 


 

 

3 months
ended
March 31,
2005

 

3 months
ended
December 31,
2004

 

3 months
ended
March 31,
2004

 

 

 

 

 

 

Profitability and Productivity:

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.18

%

 

1.06

%

 

3.53

%

Return on average equity

 

 

14.58

%

 

12.06

%

 

30.80

%

Net interest margin

 

 

3.06

%

 

3.14

%

 

4.81

%

Non-interest expense to total assets

 

 

1.92

%

 

1.98

%

 

2.04

%

Efficiency ratio

 

 

59.47

%

 

55.97

%

 

47.75

%

SOURCE  Pacific Premier Bancorp, Inc.
          -0-                    04/21/2005
          /CONTACT:  Steven R. Gardner, President/CEO, or John Shindler, Executive
Vice President/CFO, both of Pacific Premier Bancorp, Inc., +1-714-431-4000/
_