Exhibit 99.1
Pacific Premier Bancorp, Inc. Announces Third Quarter 2016 Results (Unaudited)
Third Quarter 2016 Summary
| |
| • | Diluted earnings per share of $0.33 and net income of $9.2 million |
| |
| • | Total loan growth of $169 million, or 23% annualized |
| |
| • | Non-performing assets to total assets of 0.17% |
| |
| • | Non-maturity deposit growth of $176 million, or 30% annualized |
| |
| • | Non-interest bearing deposits account for 37.9% of total deposits, highest in company history |
| |
| • | Total revenues increase to $45 million, or 28% annualized |
| |
| • | Core net interest margin of 4.18% |
| |
| • | ROAA and ROATCE of 1.00% and 11.52%, respectively |
| |
| • | Tangible book value per share increased $0.35 to $12.22 |
Irvine, Calif., October 19, 2016 -- Pacific Premier Bancorp, Inc. (NASDAQ: PPBI) (the “Company”), the holding company of Pacific Premier Bank (the “Bank”), reported net income for the third quarter of 2016 of $9.2 million, or $0.33 per diluted share, compared with net income of $10.4 million, or $0.37 per diluted share, for the second quarter of 2016 and net income of $7.8 million, or $0.36 per diluted share, for the third quarter of 2015.
For the three months ended September 30, 2016, the Company’s return on average assets was 1.00% and return on average tangible common equity was 11.52%. For the three months ended June 30, 2016, the Company's return on average assets was 1.17% and the return on average tangible common equity was 13.48%. For the three months ended September 30, 2015, the Company's return on average assets was 1.19% and its return on average tangible common equity was 14.25%.
Steve R. Gardner, Chairman and Chief Executive Officer of the Company, commented on the results, “We are disappointed with our level of earnings this quarter, as higher credit costs and non-recurring, non-interest expenses undermined the strong growth we had in both loans and deposits.
“Following the Security Bank acquisition, we continue to see improvement in our ability to attract new commercial customers. We generated $322 million in new loan commitments in the third quarter, a record level for the Bank. Our loan production is well diversified with strong growth generated in all of our major portfolios. The new client acquisition activity is also driving strong inflows of core deposits, with the largest increases coming in non-interest bearing deposits. We continue to execute very well on our efforts to build a highly diversified loan portfolio and a low cost deposit base.
“Our credit costs were elevated this quarter, which was primarily driven by a specific reserve of $2.0 million established for one commercial credit that deteriorated rapidly after several years of good performance. Aside from this one issue, we continue to see positive credit trends in the loan portfolio, as nonperforming assets to total assets was 17 basis points and delinquency as a percent of total loans was just 18 basis points.
“We recorded an aggregate of approximately $1.4 million of one-time costs to certain non-interest expense items in the third quarter related primarily to compensation, data processing and marketing expenses, which resulted in higher than expected non-interest expense. Excluding these items, our non-interest expense would have been in the $24 million to $25 million range, which is in line with our expected quarterly non-interest expense going forward for the foreseeable future. Our third quarter non-interest expense, excluding these one-time costs, reflects the full quarter impact of the additions we have made throughout the organization in 2016 to strengthen our infrastructure and upgrade personnel in key areas such as business development, finance and compliance.
“Following the investments we have made in 2016, we believe that we are well positioned to manage the continued growth of the Bank and that our business development capabilities are strong. As we continue to drive quality balance sheet growth, we believe we will see improved efficiencies and stronger profitability,” said Mr. Gardner.
FINANCIAL HIGHLIGHTS
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| | | | | | | | | | | | |
| | | Three Months Ended |
| | | September 30, | | June 30, | | September 30, |
| | | 2016 | | 2016 | | 2015 |
| Financial Highlights | | (dollars in thousands, except per share data) |
| Net income | | $ | 9,227 |
| | $ | 10,369 |
| | $ | 7,837 |
|
| Diluted EPS | | $ | 0.33 |
| | $ | 0.37 |
| | $ | 0.36 |
|
| Return on average assets | | 1.00 | % | | 1.17 | % | | 1.19 | % |
| Adjusted return on average assets (1)(2) | | 1.00 | % | | 1.20 | % | | 1.25 | % |
| Adjusted net income (1)(2) | | $ | 9,227 |
| | $ | 10,676 |
| | $ | 8,237 |
|
| Return on average tangible common equity (2) | | 11.52 | % | | 13.48 | % | | 14.25 | % |
| Adjusted return on average tangible common equity (1)(2) | | 11.52 | % | | 13.86 | % | | 14.96 | % |
| Net interest margin | | 4.41 | % | | 4.48 | % | | 4.22 | % |
| Cost of deposits | | 0.28 | % | | 0.28 | % | | 0.32 | % |
| Efficiency ratio (3) | | 57.0 | % | | 54.4 | % | | 53.6 | % |
| | | | | | | |
| (1) Adjusted to exclude merger related, net of tax. |
| (2) A reconciliation of the non-GAAP measures of average tangible common equity to the GAAP measures of common stockholders' equity is set forth at the end of this press release. |
| (3) Represents the ratio of non-interest expense less other real estate owned operations, core deposit intangible amortization and non-recurring merger related to the sum of net interest income before provision for loan losses and total non-interest income, less gains/(loss) on sale of securities and other-than-temporary impairment recovery/(loss) on investment securities. |
INCOME STATEMENT HIGHLIGHTS
Net Interest Income and Net Interest Margin
Net interest income totaled $39.0 million in the third quarter of 2016, an increase of $1.4 million or 3.9% from the second quarter of 2016. The increase in net interest income reflected an increase in average interest-earning assets of $147 million, partially offset by a decrease in accretion income. The increase in average interest-earning assets during the third quarter of 2016 was primarily related to record organic loan originations and the purchase of $83 million of multi-family loans.
The decrease in the net interest margin from 4.48% to 4.41% was primarily due to the decrease in accretion income. Excluding the impact of accretion, the portfolio core net interest margin was 4.18% in the third quarter of 2016 compared to 4.19% in the second quarter of 2016, with accretion contributing 23 basis points in the third quarter of 2016 as compared to 29 basis points in the second quarter of 2016.
Net interest income for the third quarter of 2016 increased $12.3 million or 46.1% compared to the third quarter of 2015. The increase was related to an increase in average interest-earning assets of $1.0 billion, which resulted primarily from our organic loan growth since the end of the third quarter of 2015 and our acquisition of Security during the first quarter of 2016. Our net interest margin for the third quarter of 2016 increased 19 basis points to 4.41% from the prior year. The expansion of the net interest margin was driven by a 10 basis point increase in the yield on earning assets, and a 10 basis point decrease in cost of funds.
Net interest margin information is presented in the following table for the periods indicated. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES |
| CONSOLIDATED AVERAGE BALANCES AND YIELD DATA |
| | | |
| | | Three Months Ended | | Three Months Ended | | Three Months Ended |
| | | September 30, 2016 | | June 30, 2016 | | September 30, 2015 |
| | | Average Balance | | Interest | | Average Yield/ Cost | | Average Balance | | Interest | | Average
Yield/
Cost | | Average Balance | | Interest | | Average Yield/ Cost |
| Assets | | (dollars in thousands) |
| | | | | | | | | | | | | | | | | | | |
| Cash and cash equivalents | | $ | 201,140 |
| | $ | 232 |
| | 0.46 | % | | $ | 177,603 |
| | $ | 189 |
| | 0.43 | % | | $ | 124,182 |
| | $ | 63 |
| | 0.20 | % |
| Investment securities | | 316,253 |
| | 1,710 |
| | 2.16 |
| | 299,049 |
| | 1,650 |
| | 2.21 |
| | 306,623 |
| | 1,749 |
| | 2.28 |
|
| Loans receivable, net (1) | | 2,998,153 |
| | 40,487 |
| | 5.37 |
| | 2,892,236 |
| | 39,035 |
| | 5.43 |
| | 2,080,281 |
| | 27,935 |
| | 5.33 |
|
| Total interest-earning assets | | $ | 3,515,546 |
| | $ | 42,429 |
| | 4.80 | % | | $ | 3,368,888 |
| | $ | 40,874 |
| | 4.88 | % | | $ | 2,511,086 |
| | $ | 29,747 |
| | 4.70 | % |
| | | | | | | | | | | | | | | | | | | |
| Liabilities | | | | | | | | | | | | | | | | | | |
| Interest-bearing deposits | | $ | 1,921,741 |
| | $ | 2,136 |
| | 0.44 | % | | $ | 1,864,253 |
| | $ | 2,010 |
| | 0.43 | % | | $ | 1,464,577 |
| | $ | 1,719 |
| | 0.47 | % |
| Borrowings | | 167,531 |
| | 1,284 |
| | 3.05 |
| | 170,065 |
| | 1,303 |
| | 3.08 |
| | 190,408 |
| | 1,332 |
| | 2.77 |
|
| Total interest-bearing liabilities | | $ | 2,089,272 |
| | $ | 3,420 |
| | 0.65 | % | | $ | 2,034,318 |
| | $ | 3,313 |
| | 0.66 | % | | $ | 1,654,985 |
| | $ | 3,051 |
| | 0.73 | % |
| Non-interest bearing deposits | | $ | 1,134,318 |
| | | | | | $ | 1,060,097 |
| | | | | | $ | 674,795 |
| | | | |
| Net interest income | | | | $ | 39,009 |
| | | | | | $ | 37,561 |
| | | | | | $ | 26,696 |
| | |
| Net interest margin (2) | | |
| | |
| | 4.41 | % | | | | | | 4.48 | % | | | | | | 4.22 | % |
| |
| (1) Average balance includes nonperforming loans and is net of deferred loan origination fees, unamortized discounts and premiums. |
| (2) Represents net interest income divided by average interest-earning assets. | | |
| | |
| | |
| | |
|
Provision for Loan Losses
A provision for loan losses was recorded for the current quarter in the amount of $4.0 million, compared with a provision for loan losses of $1.6 million in the quarter ending June 30, 2016. Specific reserves on two loans totaling $2.4 million were recorded in the current quarter with the remaining $1.6 million in provision primarily related to growth in the loan portfolio. Net loan charge-offs were $1.1 million for the third quarter.
Non-interest income
Non-interest income for the third quarter of 2016 was $6.0 million, an increase of $1.5 million or 34.1% from the second quarter of 2016. The increase from the second quarter of 2016 was primarily related to a $1.0 million increase in net gain from the sale of loans, as well as a $0.5 million increase in recoveries on previously charged-off, acquired loans. During the current quarter, $38.8 million in SBA loans and other loans were sold compared to $22.7 million in the prior quarter.
Compared to the third quarter of 2015, non-interest income for the third quarter of 2016 increased $1.6 million or 36.3%. The increase includes an increase of $0.6 million in net gain from sales of loans, a higher net gain from the sales of investment securities of $0.5 million, a $0.3 million increase in other income and a $0.2 million increase in deposit fees.
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| | | | | | | | | | | | |
| | | Three Months Ended |
| | | September 30, | | June 30, | | September 30, |
| | | 2016 | | 2016 | | 2015 |
| NON-INTEREST INCOME | | (dollars in thousands) |
| Loan servicing fees | | $ | 288 |
| | $ | 257 |
| | $ | 248 |
|
| Deposit fees | | 829 |
| | 817 |
| | 629 |
|
| Net gain from sales of loans | | 3,122 |
| | 2,124 |
| | 2,544 |
|
| Net gain from sales of investment securities | | 512 |
| | 532 |
| | 38 |
|
| Other-than-temporary-impairment recovery/(loss) on investment securities | | 2 |
| | — |
| | — |
|
| Other income | | 1,215 |
| | 720 |
| | 919 |
|
| Total non-interest income | | $ | 5,968 |
| | $ | 4,450 |
| | $ | 4,378 |
|
Non-interest Expense
Non-interest expense totaled $25.9 million for the third quarter of 2016, an increase of $2.2 million or 9.1%, compared with the second quarter of 2016. The increase was primarily driven by higher compensation costs, specifically incentive compensation including stock-based incentives, increased data processing costs, and higher marketing costs.
In comparison to the third quarter of 2015, non-interest expense grew by $8.5 million or 48.8%. The increase in expense was primarily related to the additional costs from the personnel and branches retained from the acquisition of Security, combined with our continued investment in personnel to support our organic growth in loans and deposits.
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| | | | | | | | | | | | |
| | | Three Months Ended |
| | | September 30, | | June 30, | | September 30, |
| | | 2016 | | 2016 | | 2015 |
| NON-INTEREST EXPENSE | | (dollars in thousands) |
| Compensation and benefits | | $ | 14,179 |
| | $ | 13,098 |
| | $ | 9,066 |
|
| Premises and occupancy | | 2,633 |
| | 2,559 |
| | 2,120 |
|
| Data processing and communications | | 1,223 |
| | 887 |
| | 681 |
|
| Other real estate owned operations, net | | 5 |
| | (15 | ) | | 9 |
|
| FDIC insurance premiums | | 442 |
| | 401 |
| | 355 |
|
| Legal, audit and professional expense | | 676 |
| | 446 |
| | 505 |
|
| Marketing expense | | 1,591 |
| | 775 |
| | 567 |
|
| Office and postage expense | | 612 |
| | 573 |
| | 525 |
|
| Loan expense | | 534 |
| | 540 |
| | 370 |
|
| Deposit expense | | 1,315 |
| | 1,196 |
| | 917 |
|
| Merger related expense | | — |
| | 497 |
| | 400 |
|
| CDI amortization | | 525 |
| | 645 |
| | 344 |
|
| Other expense | | 2,125 |
| | 2,093 |
| | 1,515 |
|
| Total non-interest expense | | $ | 25,860 |
| | $ | 23,695 |
| | $ | 17,374 |
|
|
| | | | | | | | | |
| | | Three Months Ended |
| | | September 30, | | June 30, | | September 30, |
| | | 2016 | | 2016 | | 2015 |
| Operating Metrics | | |
| Efficiency ratio (1) | | 57.0 | % | | 54.4 | % | | 53.6 | % |
| Non-interest expense to average total assets (2) | | 2.74 | % | | 2.59 | % | | 2.58 | % |
| Full-time equivalent employees, at period end | | 448 |
| | 438 |
| | 332 |
|
| | | | | | | |
| (1) Represents the ratio of non-interest expense less other real estate owned operations, core deposit intangible amortization and non-recurring merger related to the sum of net interest income before provision for loan losses and total non-interest income less, gains/(loss) on sale of securities and other-than-temporary impairment recovery/(loss) on investment securities. |
| (2) Adjusted to exclude CDI amortization. |
Income Tax
For the third quarter of 2016, our effective tax rate was 38.9%, compared with 38.0% for the second quarter of 2016 and 38.0% for the third quarter of 2015. The increase from the second quarter reflects a true-up to the Company's anticipated full year tax rate of 39%.
BALANCE SHEET HIGHLIGHTS
Loans
Loans held for investment totaled $3.09 billion at September 30, 2016, an increase of $170 million or 5.8% from June 30, 2016, and an increase of $923 million or 42.6% from September 30, 2015. The increase from June 30, 2016, was primarily due to $322 million in organic loan originations and $85.4 million in loan purchases, partially offset by $173 million in principal payments and $38.8 million in loan sales. The total end of period weighted average interest rate on loans, excluding fees and discounts, at September 30, 2016 was 4.80%, compared to 4.84% at June 30, 2016 and 4.90% at September 30, 2015.
Loan activity during the third quarter of 2016 included organic loan originations of $322 million, including commercial real estate loans of $65.1 million, commercial and industrial loan originations of $64.1 million, construction loan originations of $52.9 million, franchise loan originations of $48.4 million and SBA loan originations of $43.2 million. At September 30, 2016 our loan to deposit ratio was 101.0%, compared with 99.6% and 101.3% at June 30, 2016 and September 30, 2015, respectively.
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| | | | | | | | | | | | |
| | | Three Months Ended |
| | | September 30, | | June 30, | | September 30, |
| | | 2016 | | 2016 | | 2015 |
| LOAN ACTIVITY | | (dollars in thousands) |
| Loans originated | | $ | 322,405 |
| | $ | 298,742 |
| | $ | 248,815 |
|
| Loans purchased | | 85,395 |
| | — |
| | — |
|
| Repayments | | (172,815 | ) | | (190,026 | ) | | (127,475 | ) |
| Loans sold | | (38,847 | ) | | (22,746 | ) | | (28,039 | ) |
| Change in undisbursed | | (31,915 | ) | | (17,208 | ) | | (45,085 | ) |
| Other | | 4,890 |
| | 3,260 |
| | 1,080 |
|
| Increase in total loans, gross | | 169,113 |
| | 72,022 |
| | 49,296 |
|
| Change in allowance | | (2,888 | ) | | (500 | ) | | (1,045 | ) |
| Increase in total loans, net | | $ | 166,225 |
| | $ | 71,522 |
| | $ | 48,251 |
|
|
| | | | | | | | | | | | |
| | | September 30, | | June 30, | | September 30, |
| | | 2016 | | 2016 | | 2015 |
| Loan Portfolio | | (dollars in thousands) |
| Business loans: | | | | | | |
| Commercial and industrial | | $ | 537,809 |
| | $ | 508,141 |
| | $ | 288,982 |
|
| Franchise | | 431,618 |
| | 403,855 |
| | 295,965 |
|
| Commercial owner occupied | | 460,068 |
| | 443,060 |
| | 302,556 |
|
| SBA | | 92,195 |
| | 86,076 |
| | 70,191 |
|
| Warehouse facilities | | — |
| | — |
| | 144,274 |
|
| Real estate loans: | | | | |
| | |
| Commercial non-owner occupied | | 527,412 |
| | 526,362 |
| | 406,490 |
|
| Multi-family | | 689,813 |
| | 613,573 |
| | 421,240 |
|
| One-to-four family | | 101,377 |
| | 106,538 |
| | 78,781 |
|
| Construction | | 231,098 |
| | 215,786 |
| | 141,293 |
|
| Land | | 18,472 |
| | 18,341 |
| | 12,758 |
|
| Other loans | | 5,678 |
| | 5,822 |
| | 5,017 |
|
| Total Gross Loans | | 3,095,540 |
| | 2,927,554 |
| | 2,167,547 |
|
| Less Loans held for sale, net | | 9,009 |
| | 10,116 |
| | — |
|
| Total gross loans held for investment | | 3,086,531 |
| | 2,917,438 |
| | 2,167,547 |
|
| Less: | | |
| | |
| | |
|
| Deferred loan origination costs/(fees) and premiums/(discounts) | | 4,308 |
| | 3,181 |
| | 309 |
|
| Allowance for loan losses | | (21,843 | ) | | (18,955 | ) | | (16,145 | ) |
| Loans held for investment, net | | $ | 3,068,996 |
| | $ | 2,901,664 |
| | $ | 2,151,711 |
|
Asset Quality and Allowance for Loan Losses
Non-performing assets totaled $6.4 million or 0.17% of total assets at September 30, 2016, an increase from $4.8 million or 0.13% of total assets at June 30, 2016. During the third quarter of 2016, non-performing loans increased $1.7 million to total $5.7 million primarily as a result of two loans, and other real estate owned remained unchanged at $0.7 million.
At September 30, 2016, the allowance for loan losses was $21.8 million, an increase of $2.9 million from June 30, 2016. Loan loss provision for the quarter was $4.0 million while net charge-offs were $1.1 million. The increase in the allowance for loan losses at September 30, 2016 was mainly attributable to $2.4 million of specific reserves for two credits and loan growth in certain segments of the loan portfolio.
At September 30, 2016, our allowance for loan losses as a percent of non-accrual loans was 381%, a decrease from 467% at June 30, 2016. The ratio of allowance for loan losses to total loans at September 30, 2016 was 0.70%, compared to 0.65% and 0.74% at June 30, 2016 and September 30, 2015. Including the loan fair market value discounts recorded in connection with our acquisitions, the allowance for loan losses to total gross loans ratio was 0.89% at September 30, 2016, compared with 0.89% at June 30, 2016 and 0.93% at September 30, 2015.
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| | | | | | | | | | | | |
| | | September 30, | | June 30, | | September 30, |
| | | 2016 | | 2016 | | 2015 |
| Asset Quality | | (dollars in thousands) |
| Non-accrual loans | | $ | 5,734 |
| | $ | 4,062 |
| | $ | 4,095 |
|
| Other real estate owned | | 711 |
| | 711 |
| | 711 |
|
| Non-performing assets | | $ | 6,445 |
| | $ | 4,773 |
| | $ | 4,806 |
|
| | | | | | | |
| Allowance for loan losses | | $ | 21,843 |
| | $ | 18,955 |
| | $ | 16,145 |
|
| Allowance for loan losses as a percent of total non-performing loans | | 381 | % | | 467 | % | | 394 | % |
| Non-performing loans as a percent of gross loans | | 0.18 | % | | 0.14 | % | | 0.19 | % |
| Non-performing assets as a percent of total assets | | 0.17 | % | | 0.13 | % | | 0.18 | % |
| Net loan charge-offs (recoveries) for the quarter ended | | $ | 1,125 |
| | $ | 1,089 |
| | $ | 17 |
|
| Net loan charge-offs for quarter to average total loans, net | | 0.04 | % | | 0.04 | % | | — | % |
| Allowance for loan losses to gross loans | | 0.70 | % | | 0.65 | % | | 0.74 | % |
| Delinquent Loans: | | |
| | | | |
| 30 - 59 days | | $ | 1,042 |
| | $ | 1,144 |
| | $ | 702 |
|
| 60 - 89 days | | 1,990 |
| | 2,487 |
| | 25 |
|
| 90+ days | | 2,646 |
| | 1,797 |
| | 2,214 |
|
| Total delinquency | | $ | 5,678 |
| | $ | 5,428 |
| | $ | 2,941 |
|
| Delinquency as a % of total gross loans | | 0.18 | % | | 0.19 | % | | 0.14 | % |
Investment Securities
Investment securities available for sale totaled $313 million at September 30, 2016, an increase of $67.7 million from June 30, 2016, and $22.1 million from September 30, 2015. The increase in the third quarter was primarily the result of $96.9 million in securities purchased, partially offset by $16.1 million in securities sold.
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| | | | | | | | | | | | |
| | | Estimated Fair Value |
| | | September 30, | | June 30, | | September 30, |
| | | 2016 | | 2016 | | 2015 |
| Investment securities available for sale: | | (dollars in thousands) |
| Corporate | | $ | 23,330 |
| | $ | — |
| | $ | — |
|
| Municipal bonds | | 116,838 |
| | 118,799 |
| | 130,004 |
|
| Collateralized mortgage obligation | | 33,866 |
| | 22,844 |
| | — |
|
| Mortgage-backed securities | | 139,166 |
| | 103,828 |
| | 161,143 |
|
| Total securities available for sale | | $ | 313,200 |
| | $ | 245,471 |
| | $ | 291,147 |
|
| | | | | | | |
| Investments held to maturity | | $ | 9,004 |
| | $ | 9,390 |
| | $ | — |
|
Deposits
At September 30, 2016, deposits totaled $3.06 billion, an increase of $129 million or 4.4% from June 30, 2016 and $921 million or 43.0% from September 30, 2015. At September 30, 2016, non-maturity deposits totaled $2.49 billion, an increase of $176 million, or 7.62% from June 30, 2016 and an increase of $853 million or 52.2% from September 30, 2015. During the third quarter of 2016, deposit increases included $117 million in non-interest
bearing deposits and $57.6 million in money market/savings deposits, partially offset by decreases of $36.6 million in retail certificate deposits and $10.7 million in wholesale/brokered certificates of deposits. The increase in non-maturity deposits was primarily due to commercial relationship deposit increases and, to a lesser extent, higher homeowner's association ("HOA") deposits. Due to the increase in lower cost non-maturity deposits, certain retail and wholesale/brokered deposits were allowed to mature.
The weighted average cost of deposits for the three month period ending September 30, 2016 and June 30, 2016 was 0.28%, compared to 0.32% for the three month periods September 30, 2015.
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| | | | | | | | | | | | |
| | | September 30, | | June 30, | | September 30, |
| | | 2016 | | 2016 | | 2015 |
| Deposit Accounts | | (dollars in thousands) |
| Non-interest bearing checking | | $ | 1,160,394 |
| | $ | 1,043,361 |
| | $ | 680,937 |
|
| Interest-bearing: | | | | | | |
| Checking | | 170,057 |
| | 168,669 |
| | 130,671 |
|
| Money market/Savings | | 1,157,086 |
| | 1,099,445 |
| | 822,876 |
|
| Retail certificates of deposit | | 384,083 |
| | 420,673 |
| | 383,481 |
|
| Wholesale/brokered certificates of deposit | | 188,132 |
| | 198,853 |
| | 121,242 |
|
| Total interest-bearing | | 1,899,358 |
| | 1,887,640 |
| | 1,458,270 |
|
| Total deposits | | $ | 3,059,752 |
| | $ | 2,931,001 |
| | $ | 2,139,207 |
|
| | | | | | | |
| Deposit Mix (% of total deposits) | | | | | | |
| Non-interest bearing deposits | | 37.9 | % | | 35.6 | % | | 31.8 | % |
| Non-maturity deposits | | 81.3 | % | | 78.9 | % | | 76.4 | % |
Borrowings
At September 30, 2016, total borrowings amounted to $206 million, an increase of $15.0 million or 7.9% from June 30, 2016 and a decrease of $56.2 million from September 30, 2015. At September 30, 2016, total borrowings represented 5.48% of total assets, compared to 5.30% and 9.60%, as of June 30, 2016 and September 30, 2015, respectively.
|
| | | | | | | | | | | | | | | | | | | | |
| | September 30, 2016 | | June 30, 2016 | | September 30, 2015 |
| | Balance | | Weighted Average Rate | | Balance | | Weighted Average Rate | | Balance | | Weighted Average Rate |
| | (dollars in thousands) |
| FHLB advances | $ | 90,000 |
| | 0.38 | % | | $ | 75,000 |
| | 0.59 | % | | $ | 144,000 |
| | 0.38 | % |
| Reverse repurchase agreements | 46,247 |
| | 2.01 | % | | 45,252 |
| | 2.07 | % | | 47,483 |
| | 1.97 | % |
| Subordinated debentures | 69,353 |
| | 5.35 | % | | 70,310 |
| | 5.35 | % | | 70,310 |
| | 5.35 | % |
| Total borrowings | $ | 205,600 |
| | 2.44 | % | | $ | 190,562 |
| | 2.65 | % | | $ | 261,793 |
| | 2.00 | % |
| | | | | | | | | | | | |
Weighted average cost of borrowings during the quarter | 3.05 | % | | |
| | 3.08 | % | | |
| | 2.77 | % | | |
|
| Borrowings as a percent of total assets | 5.48 | % | | |
| | 5.30 | % | | |
| | 9.60 | % | | |
|
Capital Ratios
At September 30, 2016, our ratio of tangible common equity to total assets was 9.28%, with book value per share of $16.27 and tangible book value of $12.22 per share.
At September 30, 2016, the Bank exceeded all regulatory capital requirements with a ratio for tier 1 leverage capital of 11.03%, common equity tier 1 risk-based capital of 12.07%, tier 1 risk-based capital of 12.07% and total risk-based capital of 12.77%. These capital ratios exceeded the “well capitalized” standards defined by the federal banking regulators of 5.00% for tier 1 leverage capital, 6.5% for common equity tier 1 risk-based capital, 8.00% for tier 1 risk-based capital and 10.00% for total risk-based capital. At September 30, 2016, the Company had a ratio for tier 1 leverage capital of 9.80%, common equity tier 1 risk-based capital of 10.42%, tier 1 risk-based capital of 10.72% and total risk-based capital of 13.21%.
|
| | | | | | | | | | | | |
| | | September 30, | | June 30, | | September 30, |
| | | 2016 | | 2016 | | 2015 |
| Capital Ratios | | | | | | |
| Pacific Premier Bank | | |
| Tier 1 leverage ratio | | 11.03 | % | | 11.17 | % | | 11.44 | % |
| Common equity tier 1 risk-based capital ratio | | 12.07 | % | | 12.32 | % | | 12.54 | % |
| Tier 1 risk-based capital ratio | | 12.07 | % | | 12.32 | % | | 12.54 | % |
| Total risk-based capital ratio | | 12.77 | % | | 12.94 | % | | 13.25 | % |
| Pacific Premier Bancorp, Inc. | | |
| | |
| | |
|
| Tier 1 leverage ratio | | 9.80 | % | | 9.88 | % | | 9.50 | % |
| Common equity tier 1 risk-based capital ratio | | 10.42 | % | | 10.58 | % | | 10.02 | % |
| Tier 1 risk-based capital ratio | | 10.72 | % | | 10.90 | % | | 10.40 | % |
| Total risk-based capital ratio | | 13.21 | % | | 13.45 | % | | 13.65 | % |
| Tangible common equity ratio | | 9.28 | % | | 9.41 | % | | 8.75 | % |
| | | | | | | |
| Share Data | | |
| | |
| | |
|
| Book value per share | | $ | 16.27 |
| | $ | 15.94 |
| | $ | 13.52 |
|
| Tangible book value per share | | $ | 12.22 |
| | $ | 11.87 |
| | $ | 10.80 |
|
| Closing stock price | | $ | 26.46 |
| | $ | 24.00 |
| | $ | 20.32 |
|
| Outstanding shares at period end | | 27,656,533 |
| | 27,650,533 |
| | 21,510,678 |
|
Conference Call and Webcast
The Company will host a conference call at 9:00 a.m. PT / 12:00 p.m. ET on October 19, 2016 to discuss its financial results. Analysts and investors may participate in the question-and-answer session. A live webcast will be available on the Webcasts page of the Company's investor relations website. An archived version of the webcast will be available in the same location shortly after the live call has ended. The conference call can be accessed by telephone at (866) 290-5977 and asking to be joined to the Pacific Premier Bancorp conference call. Additionally a telephone replay will be made available through October 26, 2016 at (877) 344-7529, conference ID 10094248.
About Pacific Premier Bancorp, Inc.
Pacific Premier Bancorp, Inc. is the holding company for Pacific Premier Bank, one of the largest community banks headquartered in Southern California. Pacific Premier Bank is a business bank primarily focused on serving small and middle market businesses in the counties of Los Angeles, Orange, Riverside, San Bernardino and San Diego, California. Pacific Premier Bank offers a diverse range of lending products including commercial, commercial real estate, construction, and SBA loans, as well as specialty banking products for homeowners associations and franchise lending nationwide. Pacific Premier Bank serves its customers through its 16 full-service depository branches in Southern California located in the cities of Corona, Encinitas, Huntington Beach, Irvine, Los Alamitos, Murrieta, Newport Beach, Orange, Palm Desert, Palm Springs, Redlands, Riverside, San Bernardino, and San Diego.
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. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the Company. There can be no assurance that future developments affecting the Company will be the same as those anticipated by management. The Company cautions readers that a number of important factors could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements. These risks and uncertainties include, but are not limited to, the following: the strength of the United States economy in general and the strength of the local economies in which we conduct operations; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; inflation, interest rate, market and monetary fluctuations; the timely development of competitive new products and services and the acceptance of these products and services by new and existing customers; the willingness of users to substitute competitors’ products and services for the Company’s products and services; the impact of changes in financial services policies, laws and regulations (including the Dodd-Frank Wall Street Reform and Consumer Protection Act) and of governmental efforts to restructure the U.S. financial regulatory system; technological changes; the effect of acquisitions that the Company may make, if any, including, without limitation, the failure to achieve the expected revenue growth and/or expense savings from its acquisitions; changes in the level of the Company’s nonperforming assets and charge-offs; any oversupply of inventory and deterioration in values of California real estate, both residential and commercial; the effect of changes in accounting policies and practices, as may be adopted from time-to-time by bank regulatory agencies, the Securities and Exchange Commission (“SEC”), the Public Company Accounting Oversight Board, the Financial Accounting Standards Board or other accounting standards setters; possible other-than-temporary impairment of securities held by us; changes in consumer spending, borrowing and savings habits; the effects of the Company’s lack of a diversified loan portfolio, including the risks of geographic and industry concentrations; ability to attract deposits and other sources of liquidity; changes in the financial performance and/or condition of our borrowers; changes in the competitive environment among financial and bank holding companies and other financial service providers; unanticipated regulatory or judicial proceedings; and the Company’s ability to manage the risks involved in the foregoing. Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the 2015 Annual Report on Form 10-K of Pacific Premier Bancorp, Inc. filed with the SEC and available at the SEC’s Internet site (http://www.sec.gov).
The Company specifically disclaims any obligation to update any factors or to publicly announce the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.
Contact:
Pacific Premier Bancorp, Inc.
Steve R. Gardner
Chairman & Chief Executive Officer
949.864.8000
Ronald J. Nicolas, Jr.
Senior Executive Vice President & CFO
949.864.8000
|
| | | | | | | | | | | | | | | | | | | | |
| PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES |
| CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION |
| (dollars in thousands) |
| (Unaudited) |
| | | September 30, | | June 30, | | March 31, | | December 31, | | September 30, |
| ASSETS | | 2016 | | 2016 | | 2016 | | 2015 | | 2015 |
| Cash and due from banks | | $ | 18,557 |
| | $ | 15,444 |
| | $ | 18,624 |
| | $ | 14,935 |
| | $ | 102,235 |
|
| Interest-bearing deposits with financial institutions | | 85,347 |
| | 169,855 |
| | 174,890 |
| | 63,482 |
| | 526 |
|
| Cash and cash equivalents | | 103,904 |
| | 185,299 |
| | 193,514 |
| | 78,417 |
| | 102,761 |
|
| Interest-bearing time deposits with financial institutions | | 3,944 |
| | 3,944 |
| | 3,944 |
| | 1,972 |
| | — |
|
| Investments held to maturity, at amortized cost | | 8,900 |
| | 9,292 |
| | 9,590 |
| | 9,642 |
| | — |
|
| Investment securities available for sale, at fair value | | 313,200 |
| | 245,471 |
| | 269,711 |
| | 280,273 |
| | 291,147 |
|
| FHLB, FRB and other stock, at cost | | 29,966 |
| | 26,984 |
| | 27,103 |
| | 22,292 |
| | 22,490 |
|
| Loans held for sale, at lower of cost or fair value | | 9,009 |
| | 10,116 |
| | 7,281 |
| | 8,565 |
| | — |
|
| Loans held for investment | | 3,090,839 |
| | 2,920,619 |
| | 2,851,432 |
| | 2,254,315 |
| | 2,167,856 |
|
| Allowance for loan losses | | (21,843 | ) | | (18,955 | ) | | (18,455 | ) | | (17,317 | ) | | (16,145 | ) |
| Loans held for investment, net | | 3,068,996 |
| | 2,901,664 |
| | 2,832,977 |
| | 2,236,998 |
| | 2,151,711 |
|
| Accrued interest receivable | | 11,642 |
| | 12,143 |
| | 11,862 |
| | 9,315 |
| | 9,083 |
|
| Other real estate owned | | 711 |
| | 711 |
| | 1,161 |
| | 1,161 |
| | 711 |
|
| Premises and equipment | | 11,314 |
| | 11,014 |
| | 11,963 |
| | 9,248 |
| | 9,044 |
|
| Deferred income taxes, net | | 20,001 |
| | 16,552 |
| | 17,000 |
| | 11,511 |
| | 13,059 |
|
| Bank owned life insurance | | 40,116 |
| | 39,824 |
| | 39,535 |
| | 39,245 |
| | 38,953 |
|
| Intangible assets | | 9,976 |
| | 10,500 |
| | 11,145 |
| | 7,170 |
| | 7,514 |
|
| Goodwill | | 101,939 |
| | 101,939 |
| | 101,939 |
| | 50,832 |
| | 50,832 |
|
| Other assets | | 21,213 |
| | 23,200 |
| | 24,360 |
| | 24,005 |
| | 17,993 |
|
| TOTAL ASSETS | | $ | 3,754,831 |
| | $ | 3,598,653 |
| | $ | 3,563,085 |
| | $ | 2,790,646 |
| | $ | 2,715,298 |
|
| LIABILITIES AND STOCKHOLDERS’ EQUITY | | |
| |
|
| | | | | | |
| LIABILITIES: | | |
| | | | | | | | |
| Deposit accounts: | | |
| | | | | | | | |
| Non-interest-bearing checking | | $ | 1,160,394 |
| | $ | 1,043,361 |
| | $ | 1,064,457 |
| | $ | 711,771 |
| | $ | 680,937 |
|
| Interest-bearing: | | | | | | | | | | |
| Checking | | 170,057 |
| | 168,669 |
| | 160,707 |
| | 134,999 |
| | 130,671 |
|
| Money market/savings | | 1,157,086 |
| | 1,099,445 |
| | 1,096,334 |
| | 827,378 |
| | 822,876 |
|
| Retail certificates of deposit | | 384,083 |
| | 420,673 |
| | 455,637 |
| | 365,911 |
| | 383,481 |
|
| Wholesale/brokered certificates of deposit | | 188,132 |
| | 198,853 |
| | 129,129 |
| | 155,064 |
| | 121,242 |
|
| Total interest-bearing | | 1,899,358 |
| | 1,887,640 |
| | 1,841,807 |
| | 1,483,352 |
| | 1,458,270 |
|
| Total deposits | | 3,059,752 |
| | 2,931,001 |
| | 2,906,264 |
| | 2,195,123 |
| | 2,139,207 |
|
| FHLB advances and other borrowings | | 136,213 |
| | 120,252 |
| | 124,956 |
| | 196,125 |
| | 191,483 |
|
| Subordinated debentures | | 69,353 |
| | 70,310 |
| | 70,310 |
| | 70,310 |
| | 70,310 |
|
| Accrued expenses and other liabilities | | 39,548 |
| | 36,460 |
| | 32,661 |
| | 30,108 |
| | 23,531 |
|
| TOTAL LIABILITIES | | 3,304,866 |
| | 3,158,023 |
| | 3,134,191 |
| | 2,491,666 |
| | 2,424,531 |
|
| STOCKHOLDERS’ EQUITY: | | |
| |
|
| | | | | | |
| Preferred stock | | — |
| | — |
| | — |
| | — |
| | — |
|
| Common stock | | 273 |
| | 273 |
| | 273 |
| | 215 |
| | 215 |
|
| Additional paid-in capital | | 343,233 |
| | 342,388 |
| | 341,660 |
| | 221,487 |
| | 220,992 |
|
| Retained earnings | | 105,096 |
| | 95,869 |
| | 85,500 |
| | 76,946 |
| | 68,881 |
|
| Accumulated other comprehensive income, net of tax | | 1,363 |
| | 2,100 |
| | 1,461 |
| | 332 |
| | 679 |
|
| TOTAL STOCKHOLDERS’ EQUITY | | 449,965 |
| | 440,630 |
| | 428,894 |
| | 298,980 |
| | 290,767 |
|
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | $ | 3,754,831 |
| | $ | 3,598,653 |
| | $ | 3,563,085 |
| | $ | 2,790,646 |
| | $ | 2,715,298 |
|
|
| | | | | | | | | | | | | | | | | | | | |
| PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES |
| CONSOLIDATED STATEMENTS OF OPERATIONS |
| (dollars in thousands, except per share data) |
| (Unaudited) |
| | | | | | | |
| | | Three Months Ended | | Nine Months Ended |
| | | September 30, | | June 30, | | September 30, | | September 30, | | September 30, |
| | | 2016 | | 2016 | | 2015 | | 2016 | | 2015 |
| INTEREST INCOME | | |
| | |
| | |
| | | | |
| Loans | | $ | 40,487 |
| | $ | 39,035 |
| | $ | 27,935 |
| | $ | 114,929 |
| | $ | 80,917 |
|
| Investment securities and other interest-earning assets | | 1,942 |
| | 1,839 |
| | 1,812 |
| | 5,879 |
| | 5,527 |
|
| Total interest income | | 42,429 |
| | 40,874 |
| | 29,747 |
| | 120,808 |
| | 86,444 |
|
| INTEREST EXPENSE | | | | | | | | |
| | |
|
| Deposits | | 2,136 |
| | 2,010 |
| | 1,719 |
| | 6,215 |
| | 4,914 |
|
| FHLB advances and other borrowings | | 314 |
| | 324 |
| | 339 |
| | 963 |
| | 1,121 |
|
| Subordinated debentures | | 970 |
| | 979 |
| | 993 |
| | 2,859 |
| | 2,946 |
|
| Total interest expense | | 3,420 |
| | 3,313 |
| | 3,051 |
| | 10,037 |
| | 8,981 |
|
| NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES | | 39,009 |
| | 37,561 |
| | 26,696 |
| | 110,771 |
| | 77,463 |
|
| PROVISION FOR LOAN LOSSES | | 4,013 |
| | 1,589 |
| | 1,062 |
| | 6,722 |
| | 4,725 |
|
| NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | | 34,996 |
| | 35,972 |
| | 25,634 |
| | 104,049 |
| | 72,738 |
|
| NON-INTEREST INCOME | | | | | | | | |
| | |
|
| Loan servicing fees | | 288 |
| | 257 |
| | 248 |
| | 769 |
| | 156 |
|
| Deposit fees | | 829 |
| | 817 |
| | 629 |
| | 2,488 |
| | 1,845 |
|
| Net gain from sales of loans | | 3,122 |
| | 2,124 |
| | 2,544 |
| | 7,152 |
| | 5,265 |
|
| Net gain from sales of investment securities | | 512 |
| | 532 |
| | 38 |
| | 1,797 |
| | 293 |
|
| Other-than-temporary-impairment recovery/(loss) on investment securities | | 2 |
| | — |
| | — |
| | (205 | ) | | — |
|
| Other income | | 1,215 |
| | 720 |
| | 919 |
| | 3,279 |
| | 2,669 |
|
| Total non-interest income | | 5,968 |
| | 4,450 |
| | 4,378 |
| | 15,280 |
| | 10,228 |
|
| NON-INTEREST EXPENSE | | | | | | | | |
| | |
|
| Compensation and benefits | | 14,179 |
| | 13,098 |
| | 9,066 |
| | 39,017 |
| | 27,439 |
|
| Premises and occupancy | | 2,633 |
| | 2,559 |
| | 2,120 |
| | 7,550 |
| | 5,980 |
|
| Data processing and communications | | 1,223 |
| | 887 |
| | 681 |
| | 3,021 |
| | 2,099 |
|
| Other real estate owned operations, net | | 5 |
| | (15 | ) | | 9 |
| | (2 | ) | | 113 |
|
| FDIC insurance premiums | | 442 |
| | 401 |
| | 355 |
| | 1,225 |
| | 1,032 |
|
| Legal, audit and professional expense | | 676 |
| | 446 |
| | 505 |
| | 1,987 |
| | 1,687 |
|
| Marketing expense | | 1,591 |
| | 775 |
| | 567 |
| | 2,996 |
| | 1,785 |
|
| Office and postage expense | | 612 |
| | 573 |
| | 525 |
| | 1,666 |
| | 1,529 |
|
| Loan expense | | 534 |
| | 540 |
| | 370 |
| | 1,477 |
| | 826 |
|
| Deposit expense | | 1,315 |
| | 1,196 |
| | 917 |
| | 3,530 |
| | 2,704 |
|
| Merger related expense | | — |
| | 497 |
| | 400 |
| | 3,616 |
| | 4,392 |
|
| CDI amortization | | 525 |
| | 645 |
| | 344 |
| | 1,514 |
| | 1,002 |
|
| Other expense | | 2,125 |
| | 2,093 |
| | 1,515 |
| | 5,603 |
| | 4,469 |
|
| Total non-interest expense | | 25,860 |
| | 23,695 |
| | 17,374 |
| | 73,200 |
| | 55,057 |
|
| NET INCOME BEFORE INCOME TAX | | 15,104 |
| | 16,727 |
| | 12,638 |
| | 46,129 |
| | 27,909 |
|
| INCOME TAX | | 5,877 |
| | 6,358 |
| | 4,801 |
| | 17,977 |
| | 10,459 |
|
| NET INCOME | | $ | 9,227 |
| | $ | 10,369 |
| | $ | 7,837 |
| | $ | 28,152 |
| | $ | 17,450 |
|
| EARNINGS PER SHARE | | | | | | | | |
| | |
|
| Basic | | $ | 0.34 |
| | $ | 0.38 |
| | $ | 0.36 |
| | $ | 1.05 |
| | $ | 0.83 |
|
| Diluted | | $ | 0.33 |
| | $ | 0.37 |
| | $ | 0.36 |
| | $ | 1.03 |
| | $ | 0.82 |
|
| WEIGHTED AVERAGE SHARES OUTSTANDING | | | | | | | | |
| | |
|
| Basic | | 27,387,123 |
| | 27,378,930 |
| | 21,510,678 |
| | 26,776,140 |
| | 21,037,345 |
|
|
| | | | | | | | | | | | | | | | | | | | |
| Diluted | | 27,925,351 |
| | 27,845,490 |
| | 21,866,840 |
| | 27,245,108 |
| | 21,342,204 |
|
SELECTED FINANCIAL DATA
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES |
| CONSOLIDATED AVERAGE BALANCES AND YIELD DATA |
| | | |
| | | Three Months Ended | | Three Months Ended | | Three Months Ended |
| | | September 30, 2016 | | June 30, 2016 | | September 30, 2015 |
| | | Average Balance | | Interest | | Average Yield/Cost | | Average Balance | | Interest | | Average Yield/Cost | | Average Balance | | Interest | | Average Yield/Cost |
| Assets | | (dollars in thousands) |
| Interest-earning assets: | | | | | | | | | | | | | | | | | | |
| Cash and cash equivalents | | $ | 201,140 |
| | $ | 232 |
| | 0.46 | % | | $ | 177,603 |
| | $ | 189 |
| | 0.43 | % | | $ | 124,182 |
| | $ | 63 |
| | 0.20 | % |
| Investment securities | | 316,253 |
| | 1,710 |
| | 2.16 |
| | 299,049 |
| | 1,650 |
| | 2.21 |
| | 306,623 |
| | 1,749 |
| | 2.28 |
|
| Loans receivable, net (1) | | 2,998,153 |
| | 40,487 |
| | 5.37 |
| | 2,892,236 |
| | 39,035 |
| | 5.43 |
| | 2,080,281 |
| | 27,935 |
| | 5.33 |
|
| Total interest-earning assets | | 3,515,546 |
| | 42,429 |
| | 4.80 | % | | 3,368,888 |
| | 40,874 |
| | 4.88 | % | | 2,511,086 |
| | 29,747 |
| | 4.70 | % |
| Non-interest-earning assets | | 186,778 |
| | | | | | 190,838 |
| | | | | | 125,615 |
| | | | |
| Total assets | | $ | 3,702,324 |
| | | | | | $ | 3,559,726 |
| | | | | | $ | 2,636,701 |
| | | | |
| Liabilities and Equity | | | | | | | | | | | | | | | | | | |
| Interest-bearing deposits: | | | | | | | | | | | | | | | | | | |
| Interest checking | | $ | 185,344 |
| | $ | 53 |
| | 0.11 | % | | $ | 178,258 |
| | $ | 50 |
| | 0.11 | % | | $ | 141,747 |
| | $ | 40 |
| | 0.11 | % |
| Money market | | 1,036,350 |
| | 923 |
| | 0.35 |
| | 980,806 |
| | 896 |
| | 0.37 |
| | 708,365 |
| | 616 |
| | 0.35 |
|
| Savings | | 98,496 |
| | 38 |
| | 0.15 |
| | 98,419 |
| | 38 |
| | 0.16 |
| | 91,455 |
| | 37 |
| | 0.16 |
|
| Time | | 601,551 |
| | 1,122 |
| | 0.74 |
| | 606,770 |
| | 1,026 |
| | 0.68 |
| | 523,010 |
| | 1,026 |
| | 0.78 |
|
| Total interest-bearing deposits | | 1,921,741 |
| | 2,136 |
| | 0.44 | % | | 1,864,253 |
| | 2,010 |
| | 0.43 | % | | 1,464,577 |
| | 1,719 |
| | 0.47 | % |
| FHLB advances and other borrowings | | 97,547 |
| | 314 |
| | 1.28 |
| | 99,755 |
| | 324 |
| | 1.31 |
| | 120,098 |
| | 339 |
| | 1.12 |
|
| Subordinated debentures | | 69,984 |
| | 970 |
| | 5.54 |
| | 70,310 |
| | 979 |
| | 5.57 |
| | 70,310 |
| | 993 |
| | 5.65 |
|
| Total borrowings | | 167,531 |
| | 1,284 |
| | 3.05 | % | | 170,065 |
| | 1,303 |
| | 3.08 | % | | 190,408 |
| | 1,332 |
| | 2.77 | % |
| Total interest-bearing liabilities | | 2,089,272 |
| | 3,420 |
| | 0.65 | % | | 2,034,318 |
| | 3,313 |
| | 0.66 | % | | 1,654,985 |
| | 3,051 |
| | 0.73 | % |
| Non-interest-bearing deposits | | 1,134,318 |
| | | | | | 1,060,097 |
| | | | | | 674,795 |
| | | | |
| Other liabilities | | 35,019 |
| | | | | | 32,969 |
| | | | | | 22,435 |
| | | | |
| Total liabilities | | 3,258,609 |
| | | | | | 3,127,384 |
| | | | | | 2,352,215 |
| | | | |
| Stockholders' equity | | 443,715 |
| | | | | | 432,342 |
| | | | | | 284,486 |
| | | | |
| Total liabilities and equity | | $ | 3,702,324 |
| | | | | | $ | 3,559,726 |
| | | | | | $ | 2,636,701 |
| | | | |
| Net interest income | | | | $ | 39,009 |
| | | | | | $ | 37,561 |
| | | | | | $ | 26,696 |
| | |
| Net interest margin (2) | | | | | | 4.41 | % | | | | | | 4.48 | % | | | | | | 4.22 | % |
| Ratio of interest-earning assets to interest-bearing liabilities | | 168.27 | % | | | | | | 165.60 | % | | | | | | 151.73 | % |
| |
| (1) Average balance includes nonperforming loans and is net of deferred loan origination fees, unamortized discounts and premiums. |
| (2) Represents net interest income divided by average interest-earning assets. | | |
| | |
| | |
| | |
|
|
| | | | | | | | | | | | | | | | | | | | |
| PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES |
| LOAN PORTFOLIO COMPOSITION |
| (dollars in thousands) |
| | | | | | | | | | | |
| | | September 30, | | June 30, | | March 31, | | December 31, | | September 30, |
| | | 2016 | | 2016 | | 2016 | | 2015 | | 2015 |
| Loan Portfolio | | | | | | |
| Business loans: | | | | | | | | | | |
| Commercial and industrial | | $ | 537,809 |
| | $ | 508,141 |
| | $ | 491,112 |
| | $ | 309,741 |
| | $ | 288,982 |
|
| Franchise | | 431,618 |
| | 403,855 |
| | 371,875 |
| | 328,925 |
| | 295,965 |
|
| Commercial owner occupied | | 460,068 |
| | 443,060 |
| | 424,289 |
| | 294,726 |
| | 302,556 |
|
| SBA | | 92,195 |
| | 86,076 |
| | 78,350 |
| | 62,256 |
| | 70,191 |
|
| Warehouse facilities | | — |
| | — |
| | 1,394 |
| | 143,200 |
| | 144,274 |
|
| Real estate loans: | | | | | | | | | | |
| Commercial non-owner occupied | | 527,412 |
| | 526,362 |
| | 522,080 |
| | 421,583 |
| | 406,490 |
|
| Multi-family | | 689,813 |
| | 613,573 |
| | 619,485 |
| | 429,003 |
| | 421,240 |
|
| One-to-four family | | 101,377 |
| | 106,538 |
| | 106,854 |
| | 80,050 |
| | 78,781 |
|
| Construction | | 231,098 |
| | 215,786 |
| | 218,069 |
| | 169,748 |
| | 141,293 |
|
| Land | | 18,472 |
| | 18,341 |
| | 18,222 |
| | 18,340 |
| | 12,758 |
|
| Other loans | | 5,678 |
| | 5,822 |
| | 6,045 |
| | 5,111 |
| | 5,017 |
|
| Total gross loans | | 3,095,540 |
| | 2,927,554 |
| | 2,857,775 |
| | 2,262,683 |
| | 2,167,547 |
|
| Less loans held for sale, net | | 9,009 |
| | 10,116 |
| | 7,281 |
| | 8,565 |
| | — |
|
| Total gross loans held for investment | | 3,086,531 |
| | 2,917,438 |
| | 2,850,494 |
| | 2,254,118 |
| | 2,167,547 |
|
| Plus (less): | | | | | | | | | | |
| Deferred loan origination costs and premiums, net | | 4,308 |
| | 3,181 |
| | 938 |
| | 197 |
| | 309 |
|
| Allowance for loan losses | | (21,843 | ) | | (18,955 | ) | | (18,455 | ) | | (17,317 | ) | | (16,145 | ) |
| Loans held for investment, net | | $ | 3,068,996 |
| | $ | 2,901,664 |
| | $ | 2,832,977 |
| | $ | 2,236,998 |
| | $ | 2,151,711 |
|
|
| | | | | | | | | | | | | | | | | | | | |
| PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES |
| ASSET QUALITY INFORMATION |
| (dollars in thousands) |
| | | | | | | | | | | |
| | | September 30, | | June 30, | | March 31, | | December 31, | | September 30, |
| | | 2016 | | 2016 | | 2016 | | 2015 | | 2015 |
| Asset Quality | | |
| Nonaccrual loans | | $ | 5,734 |
| | $ | 4,062 |
| | $ | 4,823 |
| | $ | 3,970 |
| | $ | 4,095 |
|
| Other real estate owned | | 711 |
| | 711 |
| | 1,161 |
| | 1,161 |
| | 711 |
|
| Nonperforming assets | | $ | 6,445 |
| | $ | 4,773 |
| | $ | 5,984 |
| | $ | 5,131 |
| | $ | 4,806 |
|
| | | | | | | | | | | |
| Allowance for loan losses | | $ | 21,843 |
| | $ | 18,955 |
| | $ | 18,455 |
| | $ | 17,317 |
| | $ | 16,145 |
|
| Allowance for loan losses as a percent of total nonperforming loans | | 381 | % | | 467 | % | | 383 | % | | 436 | % | | 394 | % |
| Nonperforming loans as a percent of gross loans | | 0.18 | % | | 0.14 | % | | 0.17 | % | | 0.18 | % | | 0.19 | % |
| Nonperforming assets as a percent of total assets | | 0.17 | % | | 0.13 | % | | 0.17 | % | | 0.18 | % | | 0.18 | % |
| Net loan charge-offs for the quarter ended | | $ | 1,125 |
| | $ | 1,089 |
| | $ | (18 | ) | | $ | 528 |
| | $ | 17 |
|
| Net loan charge-offs for quarter to average total loans, net | | 0.04 | % | | 0.04 | % | | — | % | | 0.02 | % | | — | % |
| Allowance for loan losses to gross loans | | 0.70 | % | | 0.65 | % | | 0.65 | % | | 0.77 | % | | 0.74 | % |
| Delinquent Loans: | | |
| | | | |
| | |
| | |
| 30 - 59 days | | $ | 1,042 |
| | $ | 1,144 |
| | $ | 247 |
| | $ | 323 |
| | $ | 702 |
|
| 60 - 89 days | | 1,990 |
| | 2,487 |
| | — |
| | 355 |
| | 25 |
|
| 90+ days | | 2,646 |
| | 1,797 |
| | 3,199 |
| | 1,954 |
| | 2,214 |
|
| Total delinquency | | $ | 5,678 |
| | $ | 5,428 |
| | $ | 3,446 |
| | $ | 2,632 |
| | $ | 2,941 |
|
| Delinquency as a % of total gross loans | | 0.18 | % | | 0.19 | % | | 0.12 | % | | 0.12 | % | | 0.14 | % |
|
| | | | | | | | | | | | | | | | | | | | |
| PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES |
| DEPOSIT COMPOSITION |
| (dollars in thousands) |
| | | | | | | | | | | |
| | | September 30, | | June 30, | | March 31, | | December 31, | | September 30, |
| | | 2016 | | 2016 | | 2016 | | 2015 | | 2015 |
| Deposit Accounts | | |
| Non-interest bearing checking | | $ | 1,160,394 |
| | $ | 1,043,361 |
| | $ | 1,064,457 |
| | $ | 711,771 |
| | $ | 680,937 |
|
| Interest-bearing: | | | | | | | | | | |
| Checking | | 170,057 |
| | 168,669 |
| | 160,707 |
| | 134,999 |
| | 130,671 |
|
| Money market/savings | | 1,157,086 |
| | 1,099,445 |
| | 1,096,334 |
| | 827,378 |
| | 822,876 |
|
| Retail certificates of deposit | | 384,083 |
| | 420,673 |
| | 455,637 |
| | 365,911 |
| | 383,481 |
|
| Wholesale/brokered certificates of deposit | | 188,132 |
| | 198,853 |
| | 129,129 |
| | 155,064 |
| | 121,242 |
|
| Total interest-bearing | | 1,899,358 |
| | 1,887,640 |
| | 1,841,807 |
| | 1,483,352 |
| | 1,458,270 |
|
| Total deposits | | $ | 3,059,752 |
| | $ | 2,931,001 |
| | $ | 2,906,264 |
| | $ | 2,195,123 |
| | $ | 2,139,207 |
|
| | | | | | | | | | | |
| Deposit Mix (% of total deposits) | | | | | | | | | | |
| Non-interest bearing deposits | | 37.9 | % | | 35.6 | % | | 36.6 | % | | 32.4 | % | | 31.8 | % |
| Non-maturity deposits | | 81.3 | % | | 78.9 | % | | 79.9 | % | | 76.3 | % | | 76.4 | % |
GAAP RECONCILIATIONS |
| | | | | | | | | | | | |
| PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES |
| GAAP RECONCILIATIONS |
| (dollars in thousands, except per share data) |
| GAAP Reconciliations | | | | | | |
| For periods presented below, adjusted net income, adjusted diluted earnings per share and adjusted return on average assets are non-GAAP financial measures derived from GAAP-based amounts. We calculate these figures by excluding merger related expenses in the period results. Management believes that the exclusion of such items from these financial measures provides useful information to an understanding of the operating results of our core business. However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these adjusted measures, this presentation may not be comparable to other similarly titled adjusted measures reported by other companies. |
| | | Three Months Ended |
| | | September 30, | | June 30, | | September 30, |
| | | 2016 | | 2016 | | 2015 |
| Net income | | $ | 9,227 |
| | $ | 10,369 |
| | $ | 7,837 |
|
| Plus merger related expenses, net of tax | | — |
| | 497 |
| | 400 |
|
| Less merger related expenses tax adjustment | | — |
| | (190 | ) | | — |
|
| Adjusted net income | | $ | 9,227 |
| | $ | 10,676 |
| | $ | 8,237 |
|
| Diluted earnings per share | | $ | 0.33 |
| | $ | 0.37 |
| | $ | 0.36 |
|
| Plus merger related expenses, net of tax | | — |
| | 0.01 |
| | 0.02 |
|
| Adjusted diluted earnings per share | | $ | 0.33 |
| | $ | 0.38 |
| | $ | 0.38 |
|
| Return on average assets | | 1.00 | % | | 1.17 | % | | 1.19 | % |
| Plus merger related expenses, net of tax | | — | % | | 0.03 | % | | 0.06 | % |
| Adjusted return on average assets | | 1.00 | % | | 1.20 | % | | 1.25 | % |
| | | | | | | |
| For periods presented below, return on average tangible common equity and adjusted return on average tangible common equity are non-GAAP financial measures derived from GAAP-based amounts. We calculate these figures by excluding merger related expenses and/or CDI amortization expense and exclude the average CDI and average goodwill from the average stockholders' equity during the period. Management believes that the exclusion of such items from these financial measures provides useful information to an understanding of the operating results of our core business. However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these adjusted measures, this presentation may not be comparable to other similarly titled adjusted measures reported by other companies. |
| | | Three Months Ended |
| | | September 30, | | June 30, | | September 30, |
| | | 2016 | | 2016 | | 2015 |
| Net income | | $ | 9,227 |
| | $ | 10,369 |
| | $ | 7,837 |
|
| Plus tax effected CDI amortization | | 525 |
| | 645 |
| | 344 |
|
| Less CDI amortization expense tax adjustment | | (204 | ) | | (245 | ) | | (131 | ) |
| Net income for average tangible common equity | | $ | 9,548 |
| | $ | 10,769 |
| | $ | 8,050 |
|
| Plus merger related expenses, net of tax | | — |
| | 497 |
| | 400 |
|
| Less merger related expenses tax adjustment | | — |
| | (190 | ) | | — |
|
| Adjusted net income for average tangible common equity | | $ | 9,548 |
| | $ | 11,076 |
| | $ | 8,450 |
|
| Average stockholders' equity | | $ | 443,715 |
| | $ | 432,342 |
| | $ | 284,486 |
|
| Less average CDI | | 10,318 |
| | 10,876 |
| | 7,686 |
|
| Less average goodwill | | 101,939 |
| | 101,923 |
| | 50,832 |
|
| Average tangible common equity | | $ | 331,458 |
| | $ | 319,543 |
| | $ | 225,968 |
|
| Return on average tangible common equity | | 11.52 | % | | 13.48 | % | | 14.25 | % |
| Adjusted return on average tangible common equity | | 11.52 | % | | 13.86 | % | | 14.96 | % |
|
| | | | | | | | | | | | | | | | | | | | |
| Tangible common equity to tangible assets (the "tangible common equity ratio") and tangible book value per share are non-GAAP financial measures derived from GAAP-based amounts. We calculate the tangible common equity ratio by excluding the balance of intangible assets from common stockholders' equity and dividing by tangible assets. We calculate tangible book value per share by dividing tangible common equity by common shares outstanding, as compared to book value per share, which we calculate by dividing common stockholders' equity by shares outstanding. We believe that this information is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios. Accordingly, we believe that these non-GAAP financial measures provide information that is important to investors and that is useful in understanding our capital position and ratios. However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these measures, this presentation may not be comparable to other similarly titled measures reported by other companies. |
| | | September 30, | | June 30, | | March 31, | | December 31, | | September 30, |
| | | 2016 | | 2016 | | 2016 | | 2015 | | 2015 |
| Total stockholders' equity | | $ | 449,965 |
| | $ | 440,630 |
| | $ | 428,894 |
| | $ | 298,980 |
| | $ | 290,767 |
|
| Less intangible assets | | (111,915 | ) | | (112,439 | ) | | (113,230 | ) | | (58,002 | ) | | (58,346 | ) |
| Tangible common equity | | $ | 338,050 |
| | $ | 328,191 |
| | $ | 315,664 |
| | $ | 240,978 |
| | $ | 232,421 |
|
| Book value per share | | $ | 16.27 |
| | $ | 15.94 |
| | $ | 15.58 |
| | $ | 13.86 |
| | $ | 13.52 |
|
| Less intangible book value per share | | (4.05 | ) | | (4.07 | ) | | (4.12 | ) | | (2.69 | ) | | (2.72 | ) |
| Tangible book value per share | | $ | 12.22 |
| | $ | 11.87 |
| | $ | 11.46 |
| | $ | 11.17 |
| | $ | 10.80 |
|
| Total assets | | $ | 3,754,831 |
| | $ | 3,598,653 |
| | $ | 3,563,085 |
| | $ | 2,790,646 |
| | $ | 2,715,298 |
|
| Less intangible assets | | (111,915 | ) | | (112,439 | ) | | (113,230 | ) | | (58,002 | ) | | (58,346 | ) |
| Tangible assets | | $ | 3,642,916 |
| | $ | 3,486,214 |
| | $ | 3,449,855 |
| | $ | 2,732,644 |
| | $ | 2,656,952 |
|
| Tangible common equity ratio | | 9.28 | % | | 9.41 | % | | 9.15 | % | | 8.82 | % | | 8.75 | % |
