IRVINE, Calif.--(BUSINESS WIRE)--Pacific Premier Bancorp, Inc. (NASDAQ: PPBI) (the “Company”), the holding company of Pacific Premier Bank (the “Bank”), reported net income for the first quarter of 2017 of $9.5 million, or $0.34 per diluted share, compared with net income of $12.0 million, or $0.43 per diluted share, for the fourth quarter of 2016 and net income of $8.6 million, or $0.33 per diluted share, for the first quarter of 2016. Financial results for the first quarter of 2017 include $4.9 million of merger-related expenses.
For the three months ended March 31, 2017, the Company’s return on average assets was 0.94% and return on average tangible common equity was 11.03%. For the three months ended December 31, 2016, the Company's return on average assets was 1.24% and the return on average tangible common equity was 14.17%. For the three months ended March 31, 2016, the Company's return on average assets was 1.05% and its return on average tangible common equity was 12.31%.
Steven R. Gardner, Chairman, President and Chief Executive Officer of the Company, commented on the results, “We delivered another quarter of profitable balance sheet growth driven by well-balanced loan production and strong inflows of core deposits. As in the past, the first quarter benefited from the seasonal nature of the HOA deposit inflows. We had $455 million in loan originations, with more than $70 million in originations in each of our commercial, commercial real estate, construction and franchise lending businesses. Our disciplined, consistent approach to business development and expertise in a wide range of business banking markets continues to drive our success in attracting quality relationships to the Bank.
“We were very excited to complete our acquisition of Heritage Oaks Bancorp, effective April 1, 2017. We were able to close the acquisition in less than four months after signing the definitive agreement, which reflects the highly efficient process we have developed for completing our transactions. The integration of Heritage Oaks is proceeding smoothly, and we look forward to steadily growing our presence in the California Central Coast market.
“We continue to be optimistic about our opportunities to drive profitable growth in 2017. In addition to the synergies we expect from the Heritage Oaks acquisition, we anticipate continuing to generate strong organic growth. Our loan and deposit pipelines remain very healthy, which should result in a continuation of our positive balance sheet trends and further growth in revenue and earnings,” said Mr. Gardner.
FINANCIAL HIGHLIGHTS
| Three Months Ended | ||||||||||||||||||
| March 31, | December 31, | March 31, | ||||||||||||||||
| 2017 | 2016 | 2016 | ||||||||||||||||
| Financial Highlights | (dollars in thousands, except per share data) | |||||||||||||||||
| Net income | $ | 9,521 | $ | 11,953 | $ | 8,554 | ||||||||||||
| Diluted earnings per share | $ | 0.34 | $ | 0.43 | $ | 0.33 | ||||||||||||
| Return on average assets | 0.94 | % | 1.24 | % | 1.05 | % | ||||||||||||
| Return on average tangible common equity (1) | 11.03 | % | 14.17 | % | 12.31 | % | ||||||||||||
| Net interest margin | 4.39 | % | 4.59 | % | 4.43 | % | ||||||||||||
| Cost of deposits | 0.27 | % | 0.27 | % | 0.31 | % | ||||||||||||
| Efficiency ratio (2) | 52.3 | % | 50.9 | % | 52.4 | % | ||||||||||||
| (1) A reconciliation of the non-GAAP measures of average tangible common equity to the GAAP measures of common stockholders' equity is set forth at the end of this press release. | ||||||||||||||||||
| (2) Represents the ratio of noninterest expense less other real estate owned operations, core deposit intangible amortization and merger-related costs to the sum of net interest income before provision for loan losses and total noninterest income, less gains/(loss) on sale of securities and other-than-temporary impairment recovery/(loss) on investment securities. | ||||||||||||||||||
INCOME STATEMENT HIGHLIGHTS
Net Interest Income and Net Interest Margin
Net interest income totaled $41.7 million in the first quarter of 2017, a decrease of $601,000 or 1.4% from the fourth quarter of 2016. The decrease in net interest income reflected two fewer days in the quarter, lower accretion on the fair value discount of acquired loans and lower loan prepayment fees, as well as the special Federal Home Loan Bank of San Francisco ("FHLB") dividend received during the fourth quarter of 2016, all of which was partially offset by an increase in average interest-earning assets of $186 million. The increase in average interest-earning assets during the first quarter of 2017 was primarily related to record organic loan originations, with average loan balances increasing $137 million, and to a lesser extent, increases in our securities portfolio during the quarter.
The decrease in the net interest margin from 4.59% to 4.39% was primarily due to the decrease in accretion and loan prepayment income, as well as last quarter's special FHLB dividend. Core net interest margin, which excludes the impact of accretion and other one-time items, was 4.27% in the first quarter of 2017 compared to 4.32% in the fourth quarter of 2016, with accretion contributing 12 basis points in the first quarter of 2017 as compared to 18 basis points in the fourth quarter of 2016. The first quarter of 2017 and fourth quarter of 2016 core net interest margin includes the benefit of loan prepayments, which added 8 and 14 basis points to each quarter, respectively. Our core investment portfolio yield improved to 2.58% compared with 2.31% from the prior quarter, excluding the fourth quarter FHLB special dividend of $492,000, and core loan yields were 4.96% and 4.94% without the benefit of loan prepayments, and 5.06% and 5.10% with loan prepayments for the first quarter and fourth quarter, respectively.
Net interest income for the first quarter of 2017 increased $7.5 million or 21.9% compared to the first quarter of 2016. The increase was related to an increase in average interest-earning assets of $748 million, which resulted primarily from our organic loan growth since the end of the first quarter of 2016. Our net interest margin decreased 4 basis points to 4.39% from the prior year margin of 4.43%. The decrease was driven by an 8 basis point decrease in the yield on earning assets, partially offset by a 3 basis point decrease in cost of funds.
Provision for Loan Losses
A provision for loan losses was recorded for the first quarter of 2017 in the amount of $2.5 million, compared with a provision for loan losses of $2.1 million for the quarter ending December 31, 2016. Strong loan growth and net loan charge-offs of $723,000 contributed to the increase.
| PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||||||
| CONSOLIDATED AVERAGE BALANCES AND YIELD DATA | |||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||
| March 31, 2017 | December 31, 2016 | March 31, 2016 | |||||||||||||||||||||||||||||||||||||||||
|
Average Balance |
Interest Income/ Expense |
Average Yield/ Cost |
Average Balance |
Interest Income/ Expense |
Average Yield/ Cost |
Average Balance |
Interest Income/ Expense |
Average Yield/ Cost |
|||||||||||||||||||||||||||||||||||
| Assets | (dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 86,849 | $ | 84 | 0.39 | % | $ | 106,811 | $ | 103 | 0.38 | % | $ | 235,760 | $ | 238 | 0.41 | % | |||||||||||||||||||||||||
| Investment securities | 450,075 | 2,907 | 2.58 | 381,081 | 2,688 | 2.82 | 340,435 | 1,860 | 2.19 | ||||||||||||||||||||||||||||||||||
| Loans receivable, net (1) | 3,315,792 | 42,436 | 5.19 | 3,178,779 | 43,006 | 5.38 | 2,528,217 | 35,407 | 5.63 | ||||||||||||||||||||||||||||||||||
| Total interest-earning assets | $ | 3,852,716 | $ | 45,427 | 4.78 | % | $ | 3,666,671 | $ | 45,797 | 4.97 | % | $ | 3,104,412 | $ | 37,505 | 4.86 | % | |||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing deposits | $ | 2,006,365 | $ | 2,135 | 0.43 | % | $ | 1,979,240 | $ | 2,176 | 0.44 | % | $ | 1,733,240 | $ | 2,069 | 0.48 | % | |||||||||||||||||||||||||
| Borrowings | 334,618 | 1,589 | 1.93 | 190,761 | 1,317 | 2.75 | 180,718 | 1,235 | 2.75 | ||||||||||||||||||||||||||||||||||
| Total interest-bearing liabilities | $ | 2,340,983 | $ | 3,724 | 0.65 | % | $ | 2,170,001 | $ | 3,493 | 0.64 | % | $ | 1,913,958 | $ | 3,304 | 0.69 | % | |||||||||||||||||||||||||
| Noninterest-bearing deposits | $ | 1,208,045 | $ | 1,200,536 | $ | 950,526 | |||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 41,703 | $ | 42,304 | $ | 34,201 | |||||||||||||||||||||||||||||||||||||
|
Net interest margin (2) |
4.39 | % | 4.59 | % | 4.43 | % | |||||||||||||||||||||||||||||||||||||
| (1) Average balance includes nonperforming loans and is net of deferred loan origination fees, unamortized discounts and premiums. | |||||||||||||||||||||||||||||||||||||||||||
| (2) Represents net interest income divided by average interest-earning assets. | |||||||||||||||||||||||||||||||||||||||||||
Noninterest income
Noninterest income for the first quarter of 2017 was $4.7 million, an increase of $365,000, or 8.5% from the fourth quarter of 2016. The increase from the fourth quarter of 2016 was primarily related to a $424,000 increase in net gain from the sale of loans as we realized a slightly higher net gain rate on the sale of $30 million of SBA loans in the first quarter compared to the fourth quarter, and higher sales of other loans in the first quarter compared to the fourth quarter, which had gains of $224,000, compared to $0 for the fourth quarter of 2016.
Noninterest income for the first quarter of 2017 decreased $165,000, or 3.4%, compared to the first quarter of 2016. The Company had lower net gain from the sales of investment securities of $753,000 and lower recoveries of $455,000 from pre-acquisition charge-offs, which were partially offset by an increase of $905,000 in net gain from sales of loans.
| Three Months Ended | ||||||||||||||||||
| March 31, | December 31, | March 31, | ||||||||||||||||
| 2017 | 2016 | 2016 | ||||||||||||||||
| NONINTEREST INCOME | (dollars in thousands) | |||||||||||||||||
| Loan servicing fees | $ | 222 | $ | 263 | $ | 225 | ||||||||||||
| Deposit fees | 847 | 934 | 828 | |||||||||||||||
| Net gain from sales of loans | 2,811 | 2,387 | 1,906 | |||||||||||||||
| Net gain from sales of investment securities | — | — | 753 | |||||||||||||||
| Other-than-temporary-impairment recovery/(loss) on investment securities | 1 | — | (207 | ) | ||||||||||||||
| Other income | 802 | 734 | 1,343 | |||||||||||||||
| Total noninterest income | $ | 4,683 | $ | 4,318 | $ | 4,848 | ||||||||||||
Noninterest Expense
Noninterest expense totaled $29.7 million for the first quarter of 2017, an increase of $4.4 million, or 17.2%, compared with the fourth quarter of 2016. The increase was primarily driven by merger-related expenses of $4.9 million in the first quarter of 2017 for the Heritage Oaks Bancorp ("Heritage Oaks") acquisition compared with $772,000 for the fourth quarter of 2016. In addition, the Company had higher compensation and benefits expenses of $1.1 million, partially offset by a $357,000 reduction in OREO expenses and a $338,000 reduction to the off-balance sheet reserve related to a funded letter of credit charge-off.
In comparison to the first quarter of 2016, noninterest expense grew by $6.1 million or 25.9%. The increase in expense was primarily related to the additional costs from the personnel and branches retained from the acquisition of Security Bank of California ("SBOC"), combined with our continued investment in personnel to support our organic growth in loans and deposits. In addition, the Company had higher merger-related expenses of $1.8 million in the first quarter of 2017, compared to the first quarter of 2016.
| Three Months Ended | |||||||||||||||||
| March 31, | December 31, | March 31, | |||||||||||||||
| 2017 | 2016 | 2016 | |||||||||||||||
| NONINTEREST EXPENSE | (dollars in thousands) | ||||||||||||||||
| Compensation and benefits | $ | 14,887 | $ | 13,815 | $ | 11,739 | |||||||||||
| Premises and occupancy | 2,453 | 2,531 | 2,283 | ||||||||||||||
| Data processing and communications | 1,187 | 1,240 | 911 | ||||||||||||||
| Other real estate owned operations, net | 12 | 369 | 8 | ||||||||||||||
| FDIC insurance premiums | 455 | 320 | 382 | ||||||||||||||
| Legal, audit and professional expense | 857 | 830 | 865 | ||||||||||||||
| Marketing expense | 818 | 865 | 630 | ||||||||||||||
| Office and postage expense | 433 | 441 | 481 | ||||||||||||||
| Loan expense | 468 | 714 | 403 | ||||||||||||||
| Deposit expense | 1,444 | 1,388 | 1,005 | ||||||||||||||
| Merger-related expense | 4,946 | 772 | 3,119 | ||||||||||||||
| CDI amortization | 511 | 525 | 344 | ||||||||||||||
| Other expense | 1,276 | 1,567 | 1,463 | ||||||||||||||
| Total noninterest expense | $ | 29,747 | $ | 25,377 | $ | 23,633 | |||||||||||
Income Tax
For the first quarter of 2017, our effective tax rate was 32.7%, compared with 37.7% for the fourth quarter of 2016 and 40.2% for the first quarter of 2016. The decrease in the effective tax rate was primarily the result of the adoption of ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Accounting, which went into effect for the Company on January 1, 2017. As a result of the adoption of ASU 2016-09, the Company began recognizing the tax effects of exercised or vested awards as discrete items in the reporting period in which they occur, resulting in a $1.1 million tax benefit to the Company for the first quarter of 2017. The Company expects the tax rate to rise to normalized levels of 38-39% starting in the second quarter.
BALANCE SHEET HIGHLIGHTS
Loans
Loans held for investment totaled $3.39 billion at March 31, 2017, an increase of $144 million, or 4.4%, from December 31, 2016, and an increase of $534 million, or 18.7%, from March 31, 2016. The increase from December 31, 2016, was primarily due to growth in commercial real estate, franchise, commercial and industrial loans and construction lending. The $534 million increase in loans from March 31, 2016 was primarily due to organic loan originations. The total end of period weighted average interest rate on loans, excluding fees and discounts, at March 31, 2017 was 4.87%, compared to 4.81% at December 31, 2016 and 4.88% at March 31, 2016.
Loan activity during the first quarter of 2017 included record organic loan originations of $455 million, including commercial and industrial loan originations of $136 million, commercial real estate loans of $94.9 million, construction loan originations of $76.5 million, franchise loan originations of $70.0 million and SBA loan originations of $46.9 million. At March 31, 2017, our ratio of loans held for investment to deposits was 102.7%, compared with 103.1% and 98.1% at December 31, 2016 and March 31, 2016, respectively.
| March 31, | December 31, | March 31, | ||||||||||||||||
| 2017 | 2016 | 2016 | ||||||||||||||||
| Loan Portfolio | (dollars in thousands) | |||||||||||||||||
| Business loans: | ||||||||||||||||||
| Commercial and industrial | $ | 593,457 | $ | 563,169 | $ | 491,112 | ||||||||||||
| Franchise | 493,158 | 459,421 | 371,875 | |||||||||||||||
| Commercial owner occupied | 482,295 | 454,918 | 424,289 | |||||||||||||||
| SBA | 107,233 | 96,705 | 78,350 | |||||||||||||||
| Warehouse facilities | — | — | 1,394 | |||||||||||||||
| Real estate loans: | ||||||||||||||||||
| Commercial non-owner occupied | 612,787 | 586,975 | 522,080 | |||||||||||||||
| Multi-family | 682,237 | 690,955 | 619,485 | |||||||||||||||
| One-to-four family | 100,423 | 100,451 | 106,854 | |||||||||||||||
| Construction | 298,279 | 269,159 | 218,069 | |||||||||||||||
| Land | 19,738 | 19,829 | 18,222 | |||||||||||||||
| Other loans | 3,930 | 4,112 | 6,045 | |||||||||||||||
| Total gross loans | 3,393,537 | 3,245,694 | 2,857,775 | |||||||||||||||
| Plus: Deferred loan origination costs/(fees) and premiums/(discounts), net | 3,250 | 3,630 | 953 | |||||||||||||||
| Total loans | 3,396,787 | 3,249,324 | 2,858,728 | |||||||||||||||
| Less: Loans held for sale, at lower of cost or fair value | 11,090 | 7,711 | 7,281 | |||||||||||||||
| Loans held for investment | 3,385,697 | 3,241,613 | 2,851,447 | |||||||||||||||
| Allowance for loan losses | (23,075 | ) | (21,296 | ) | (18,455 | ) | ||||||||||||
| Loans held for investment, net | $ | 3,362,622 | $ | 3,220,317 | $ | 2,832,992 | ||||||||||||
Asset Quality and Allowance for Loan Losses
At March 31, 2017, the allowance for loan losses was $23.1 million, an increase of $1.8 million from December 31, 2016. Loan loss provision for the quarter was $2.5 million while net charge-offs were $723,000.
At March 31, 2017, our allowance for loan losses as a percent of nonaccrual loans was 4,498%, an increase from 1,866% at December 31, 2016 and an increase from 383% at March 31, 2016. The ratio of allowance for loan losses to loans held for investment at March 31, 2017 was 0.68%, compared to 0.66% and 0.65% at December 31, 2016 and March 31, 2016, respectively. Including the loan fair market value discounts recorded in connection with our acquisitions, the allowance for loan losses to loans held for investment was 0.81% at March 31, 2017, compared with 0.81% at December 31, 2016 and 0.97% at March 31, 2016.
Nonperforming assets totaled $973,000, or 0.02% of total assets at March 31, 2017, a decrease from $1.6 million, or 0.04% of total assets at December 31, 2016. During the first quarter of 2017, nonperforming loans decreased $628,000 to $513,000, and other real estate owned remained unchanged at $460,000. Loan delinquencies decreased to $477,000, or 0.01% of loans held for investment compared to $832,000, or 0.03% of loans held for investment at December 31, 2016.
| March 31, | December 31, | March 31, | ||||||||||||||||
| 2017 | 2016 | 2016 | ||||||||||||||||
| Asset Quality | (dollars in thousands) | |||||||||||||||||
| Nonaccrual loans | $ | 513 | $ | 1,141 | $ | 4,823 | ||||||||||||
| Other real estate owned | 460 | 460 | 1,161 | |||||||||||||||
| Nonperforming assets | $ | 973 | $ | 1,601 | $ | 5,984 | ||||||||||||
| Allowance for loan losses | $ | 23,075 | $ | 21,296 | $ | 18,455 | ||||||||||||
| Allowance for loan losses as a percent of total nonperforming loans | 4,498 | % | 1,866 | % | 383 | % | ||||||||||||
| Nonperforming loans as a percent of loans held for investment | 0.02 | % | 0.04 | % | 0.17 | % | ||||||||||||
| Nonperforming assets as a percent of total assets | 0.02 | % | 0.04 | % | 0.17 | % | ||||||||||||
| Net loan charge-offs (recoveries) for the quarter ended | $ | 723 | $ | 2,601 | $ | (18 | ) | |||||||||||
| Net loan charge-offs for quarter to average total loans, net | 0.02 | % | 0.08 | % | — | % | ||||||||||||
| Allowance for loan losses to loans held for investment | 0.68 | % | 0.66 | % | 0.65 | % | ||||||||||||
| Delinquent Loans: | ||||||||||||||||||
| 30 - 59 days | $ | 117 | $ | 122 | $ | 247 | ||||||||||||
| 60 - 89 days | — | 71 | — | |||||||||||||||
| 90+ days | 360 | 639 | 3,199 | |||||||||||||||
| Total delinquency | $ | 477 | $ | 832 | $ | 3,446 | ||||||||||||
| Delinquency as a % of loans held for investment | 0.01 | % | 0.03 | % | 0.12 | % | ||||||||||||
Investment Securities
Investment securities available for sale totaled $435 million at March 31, 2017, an increase of $54.4 million from December 31, 2016, and $165.7 million from March 31, 2016. The increase in the first quarter of 2017 was primarily the result of purchases of approximately $66 million, partially offset by approximately $13 million in principal payments/amortization/redemptions and a mark-to-market fair value increase of $1.7 million. The Company did not sell any securities during the first quarter of 2017.
Deposits
At March 31, 2017, deposits totaled $3.30 billion, an increase of $151 million, or 4.8%, from December 31, 2016 and $391 million, or 13.4%, from March 31, 2016. At March 31, 2017, non-maturity deposits totaled $2.70 billion, 81.8% of total deposits, an increase of $127 million, or 4.93%, from December 31, 2016 and an increase of $376 million, or 16.2%, from March 31, 2016. During the first quarter of 2017, deposit increases included $71.6 million in money market/savings deposits, $46.8 million in noninterest-bearing deposits, $18.1 million in wholesale/brokered certificates of deposits, $8.5 million in interest checking and $6.5 million in retail certificate deposits.
The weighted average cost of deposits for the three month periods ending March 31, 2017 and December 31, 2016 was 0.27%, compared to 0.31% for the three month period ending March 31, 2016.
| March 31, | December 31, | March 31, | |||||||||||||||||||||
| 2017 | 2016 | 2016 | |||||||||||||||||||||
| Deposit Accounts | (dollars in thousands) | ||||||||||||||||||||||
| Noninterest-bearing checking | $ | 1,232,578 | $ | 1,185,768 | $ | 1,066,861 | |||||||||||||||||
| Interest-bearing: | |||||||||||||||||||||||
| Checking | 191,399 | 182,893 | 169,766 | ||||||||||||||||||||
| Money market/Savings | 1,273,917 | 1,202,361 | 1,084,989 | ||||||||||||||||||||
| Retail certificates of deposit | 381,738 | 375,203 | 455,637 | ||||||||||||||||||||
| Wholesale/brokered certificates of deposit | 217,441 | 199,356 | 129,129 | ||||||||||||||||||||
| Total interest-bearing | 2,064,495 | 1,959,813 | 1,839,521 | ||||||||||||||||||||
| Total deposits | $ | 3,297,073 | $ | 3,145,581 | $ | 2,906,382 | |||||||||||||||||
| Non-maturity deposits as a percent of total deposits | 81.8 | % | 81.7 | % | 79.9 | % | |||||||||||||||||
Borrowings
At March 31, 2017, total borrowings amounted to $381 million, a decrease of $16.6 million, or 4.2%, from December 31, 2016 and an increase of $187 million, or 96.0%, from March 31, 2016. At March 31, 2017, total borrowings represented 9.12% of total assets, compared to 9.84% and 5.45%, as of December 31, 2016 and March 31, 2016, respectively.
Capital Ratios
At March 31, 2017, our ratio of tangible common equity to total assets was 8.85%, with book value per share of $16.88 and tangible book value of $12.88 per share.
At March 31, 2017, the Bank exceeded all regulatory capital requirements with a ratio for tier 1 leverage capital of 10.73%, common equity tier 1 risk-based capital of 11.45%, tier 1 risk-based capital of 11.40% and total risk-based capital of 12.09%. 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 March 31, 2017, the Company had a ratio for tier 1 leverage capital of 9.45%, common equity tier 1 risk-based capital of 9.79%, tier 1 risk-based capital of 10.06% and total risk-based capital of 12.31%.
| March 31, | December 31, | March 31, | |||||||||||||||||||||
| 2017 | 2016 | 2016 | |||||||||||||||||||||
| Pacific Premier Bank Capital Ratios | |||||||||||||||||||||||
| Tier 1 leverage ratio | 10.73 | % | 10.94 | % | 11.79 | % | |||||||||||||||||
| Common equity tier 1 risk-based capital ratio | 11.45 | % | 11.70 | % | 12.19 | % | |||||||||||||||||
| Tier 1 risk-based capital ratio | 11.40 | % | 11.70 | % | 12.19 | % | |||||||||||||||||
| Total risk-based capital ratio | 12.09 | % | 12.34 | % | 12.81 | % | |||||||||||||||||
| Pacific Premier Bancorp, Inc. Capital Ratios | |||||||||||||||||||||||
| Tier 1 leverage ratio | 9.45 | % | 9.78 | % | 10.41 | % | |||||||||||||||||
| Common equity tier 1 risk-based capital ratio | 9.79 | % | 10.17 | % | 10.43 | % | |||||||||||||||||
| Tier 1 risk-based capital ratio | 10.06 | % | 10.45 | % | 10.75 | % | |||||||||||||||||
| Total risk-based capital ratio | 12.31 | % | 12.77 | % | 13.32 | % | |||||||||||||||||
| Tangible common equity ratio (1) | 8.85 | % | 8.86 | % | 9.16 | % | |||||||||||||||||
| Share Data | |||||||||||||||||||||||
| Book value per share | $ | 16.88 | $ | 16.54 | $ | 15.58 | |||||||||||||||||
| Shares issued and outstanding | 27,908,816 | 27,798,283 | 27,537,233 | ||||||||||||||||||||
| Tangible book value per share (1) | $ | 12.88 | $ | 12.51 | $ | 11.46 | |||||||||||||||||
| Closing stock price | $ | 38.55 | $ | 35.35 | $ | 21.37 | |||||||||||||||||
| (1) A reconciliation of the non-GAAP measures of tangible common equity and tangible book value per share to the GAAP measures of common stockholders' equity and book value per share is set forth below. | |||||||||||||||||||||||
Conference Call and Webcast
The Company will host a conference call at 9:00 a.m. PT / 12:00 p.m. ET on April 25, 2017 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 May 2, 2017 at 877-344-7529, conference ID 10104321.
About Pacific Premier Bancorp, Inc.
Pacific Premier Bancorp, Inc. is the holding company for Pacific Premier Bank, one of the largest banks headquartered in Southern California with approximately $6 billion in assets. Pacific Premier Bank is a business bank primarily focused on serving small and middle market businesses in the counties of Orange, Los Angeles, Riverside, San Bernardino, San Diego, San Luis Obispo and Santa Barbara, California. Through its more than 25 depository branches, 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.
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 2016 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.
| PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||||||||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||||
| ASSETS | 2017 | 2016 | 2016 | 2016 | 2016 | |||||||||||||||||||||||||
| Cash and due from banks | $ | 13,425 | $ | 14,706 | $ | 18,543 | $ | 15,444 | $ | 18,624 | ||||||||||||||||||||
|
Interest-bearing deposits with financial institutions |
87,088 | 142,151 | 85,361 | 169,855 | 174,888 | |||||||||||||||||||||||||
| Cash and cash equivalents | 100,513 | 156,857 | 103,904 | 185,299 | 193,512 | |||||||||||||||||||||||||
| Interest-bearing time deposits with financial institutions | 3,944 | 3,944 | 3,944 | 3,944 | 3,944 | |||||||||||||||||||||||||
| Investments held-to-maturity, at amortized cost | 8,272 | 8,565 | 8,900 | 9,292 | 9,590 | |||||||||||||||||||||||||
| Investment securities available-for-sale, at fair value | 435,408 | 380,963 | 313,200 | 245,471 | 269,711 | |||||||||||||||||||||||||
| FHLB, FRB and other stock, at cost | 37,811 | 37,304 | 29,966 | 26,984 | 27,103 | |||||||||||||||||||||||||
| Loans held for sale, at lower of cost or fair value | 11,090 | 7,711 | 9,009 | 10,116 | 7,281 | |||||||||||||||||||||||||
| Loans held for investment | 3,385,697 | 3,241,613 | 3,090,839 | 2,920,619 | 2,851,447 | |||||||||||||||||||||||||
| Allowance for loan losses | (23,075 | ) | (21,296 | ) | (21,843 | ) | (18,955 | ) | (18,455 | ) | ||||||||||||||||||||
| Loans held for investment, net | 3,362,622 | 3,220,317 | 3,068,996 | 2,901,664 | 2,832,992 | |||||||||||||||||||||||||
| Accrued interest receivable | 13,366 | 13,145 | 11,642 | 12,143 | 11,862 | |||||||||||||||||||||||||
| Other real estate owned | 460 | 460 | 711 | 711 | 1,161 | |||||||||||||||||||||||||
| Premises and equipment | 11,799 | 12,014 | 11,314 | 11,014 | 11,963 | |||||||||||||||||||||||||
| Deferred income taxes, net | 12,744 | 16,807 | 20,001 | 16,552 | 17,038 | |||||||||||||||||||||||||
| Bank owned life insurance | 40,696 | 40,409 | 40,116 | 39,824 | 39,535 | |||||||||||||||||||||||||
| Intangible assets | 8,942 | 9,451 | 9,976 | 10,500 | 11,145 | |||||||||||||||||||||||||
| Goodwill | 102,490 | 102,490 | 101,939 | 101,939 | 101,939 | |||||||||||||||||||||||||
| Other assets | 24,271 | 25,874 | 21,213 | 22,213 | 23,292 | |||||||||||||||||||||||||
| Total Assets | $ | 4,174,428 | $ | 4,036,311 | $ | 3,754,831 | $ | 3,597,666 | $ | 3,562,068 | ||||||||||||||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||
| LIABILITIES: | ||||||||||||||||||||||||||||||
| Deposit accounts: | ||||||||||||||||||||||||||||||
| Noninterest-bearing checking | $ | 1,232,578 | $ | 1,185,768 | $ | 1,160,394 | $ | 1,043,361 | $ | 1,066,861 | ||||||||||||||||||||
| Interest-bearing: | ||||||||||||||||||||||||||||||
| Checking | 191,399 | 182,893 | 181,534 | 181,859 | 169,766 | |||||||||||||||||||||||||
| Money market/savings | 1,273,917 | 1,202,361 | 1,145,609 | 1,086,255 | 1,084,989 | |||||||||||||||||||||||||
| Retail certificates of deposit | 381,738 | 375,203 | 384,083 | 420,673 | 455,637 | |||||||||||||||||||||||||
| Wholesale/brokered certificates of deposit | 217,441 | 199,356 | 188,132 | 198,853 | 129,129 | |||||||||||||||||||||||||
| Total interest-bearing | 2,064,495 | 1,959,813 | 1,899,358 | 1,887,640 | 1,839,521 | |||||||||||||||||||||||||
| Total deposits | 3,297,073 | 3,145,581 | 3,059,752 | 2,931,001 | 2,906,382 | |||||||||||||||||||||||||
| FHLB advances and other borrowings | 311,363 | 327,971 | 136,213 | 120,252 | 124,956 | |||||||||||||||||||||||||
| Subordinated debentures | 69,413 | 69,383 | 69,353 | 69,323 | 69,293 | |||||||||||||||||||||||||
| Accrued expenses and other liabilities | 25,554 | 33,636 | 39,548 | 36,460 | 32,543 | |||||||||||||||||||||||||
| Total Liabilities | 3,703,403 | 3,576,571 | 3,304,866 | 3,157,036 | 3,133,174 | |||||||||||||||||||||||||
| STOCKHOLDERS’ EQUITY: | ||||||||||||||||||||||||||||||
| Common stock | 275 | 274 | 273 | 273 | 273 | |||||||||||||||||||||||||
| Additional paid-in capital | 345,888 | 345,138 | 343,231 | 342,388 | 341,660 | |||||||||||||||||||||||||
| Retained earnings | 126,570 | 117,049 | 105,098 | 95,869 | 85,500 | |||||||||||||||||||||||||
| Accumulated other comprehensive income (loss), net of tax (benefit) | (1,708 | ) | (2,721 | ) | 1,363 | 2,100 | 1,461 | |||||||||||||||||||||||
| Total Stockholders' Equity | 471,025 | 459,740 | 449,965 | 440,630 | 428,894 | |||||||||||||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 4,174,428 | $ | 4,036,311 | $ | 3,754,831 | $ | 3,597,666 | $ | 3,562,068 | ||||||||||||||||||||
| PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||
| (dollars in thousands, except per share data) | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| Three Months Ended | ||||||||||||||||||
| March 31, | December 31, | March 31, | ||||||||||||||||
| 2017 | 2016 | 2016 | ||||||||||||||||
| INTEREST INCOME | ||||||||||||||||||
| Loans | $ | 42,436 | $ | 43,006 | $ | 35,407 | ||||||||||||
| Investment securities and other interest-earning assets | 2,991 | 2,791 | 2,098 | |||||||||||||||
| Total interest income | 45,427 | 45,797 | 37,505 | |||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||
| Deposits | 2,135 | 2,176 | 2,069 | |||||||||||||||
| FHLB advances and other borrowings | 604 | 332 | 325 | |||||||||||||||
| Subordinated debentures | 985 | 985 | 910 | |||||||||||||||
| Total interest expense | 3,724 | 3,493 | 3,304 | |||||||||||||||
| Net interest income before provision for loan losses | 41,703 | 42,304 | 34,201 | |||||||||||||||
| Provision for loan losses | 2,502 | 2,054 | 1,120 | |||||||||||||||
| Net interest income after provision for loan losses | 39,201 | 40,250 | 33,081 | |||||||||||||||
| NONINTEREST INCOME | ||||||||||||||||||
| Loan servicing fees | 222 | 263 | 225 | |||||||||||||||
| Deposit fees | 847 | 934 | 828 | |||||||||||||||
| Net gain from sales of loans | 2,811 | 2,387 | 1,906 | |||||||||||||||
| Net gain from sales of investment securities | — | — | 753 | |||||||||||||||
| Other-than-temporary-impairment recovery/(loss) on investment securities | 1 | — | (207 | ) | ||||||||||||||
| Other income | 802 | 734 | 1,343 | |||||||||||||||
| Total noninterest income | 4,683 | 4,318 | 4,848 | |||||||||||||||
| NONINTEREST EXPENSE | ||||||||||||||||||
| Compensation and benefits | 14,887 | 13,815 | 11,739 | |||||||||||||||
| Premises and occupancy | 2,453 | 2,531 | 2,283 | |||||||||||||||
| Data processing | 1,187 | 1,240 | 911 | |||||||||||||||
| Other real estate owned operations, net | 12 | 369 | 8 | |||||||||||||||
| FDIC insurance premiums | 455 | 320 | 382 | |||||||||||||||
| Legal, audit and professional expense | 857 | 830 | 865 | |||||||||||||||
| Marketing expense | 818 | 865 | 630 | |||||||||||||||
| Office, telecommunications and postage expense | 433 | 441 | 481 | |||||||||||||||
| Loan expense | 468 | 714 | 403 | |||||||||||||||
| Deposit expense | 1,444 | 1,388 | 1,005 | |||||||||||||||
| Merger-related expense | 4,946 | 772 | 3,119 | |||||||||||||||
| CDI amortization | 511 | 525 | 344 | |||||||||||||||
| Other expense | 1,276 | 1,567 | 1,463 | |||||||||||||||
| Total noninterest expense | 29,747 | 25,377 | 23,633 | |||||||||||||||
| Net income before income taxes | 14,137 | 19,191 | 14,296 | |||||||||||||||
| Income tax | 4,616 | 7,238 | 5,742 | |||||||||||||||
| Net income | $ | 9,521 | $ | 11,953 | $ | 8,554 | ||||||||||||
| EARNINGS PER SHARE | ||||||||||||||||||
| Basic | $ | 0.35 | $ | 0.44 | $ | 0.33 | ||||||||||||
| Diluted | $ | 0.34 | $ | 0.43 | $ | 0.33 | ||||||||||||
| WEIGHTED AVERAGE SHARES OUTSTANDING | ||||||||||||||||||
| Basic | 27,528,940 | 27,394,737 | 25,555,654 | |||||||||||||||
| Diluted | 28,197,220 | 28,027,479 | 25,952,187 | |||||||||||||||
SELECTED FINANCIAL DATA
| PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||||||
| CONSOLIDATED AVERAGE BALANCES AND YIELD DATA | |||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||
| March 31, 2017 | December 31, 2016 | March 31, 2016 | |||||||||||||||||||||||||||||||||||||||||
|
Average Balance |
Interest Income/ Expense |
Average Yield/ Cost |
Average Balance |
Interest Income/ Expense |
Average Yield/ Cost |
Average Balance |
Interest Income/ Expense |
Average Yield/ Cost |
|||||||||||||||||||||||||||||||||||
| Assets | (dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 86,849 | $ | 84 | 0.39 | % | $ | 106,811 | $ | 103 | 0.38 | % | $ | 235,760 | $ | 238 | 0.41 | % | |||||||||||||||||||||||||
| Investment securities | 450,075 | 2,907 | 2.58 | 381,081 | 2,688 | 2.82 | 340,435 | 1,860 | 2.19 | ||||||||||||||||||||||||||||||||||
| Loans receivable, net (1) | 3,315,792 | 42,436 | 5.19 | 3,178,779 | 43,006 | 5.38 | 2,528,217 | 35,407 | 5.63 | ||||||||||||||||||||||||||||||||||
| Total interest-earning assets | 3,852,716 | 45,427 | 4.78 | 3,666,671 | 45,797 | 4.97 | 3,104,412 | 37,505 | 4.86 | ||||||||||||||||||||||||||||||||||
| Noninterest-earning assets | 196,041 | 194,432 | 167,015 | ||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 4,048,757 | $ | 3,861,103 | $ | 3,271,427 | |||||||||||||||||||||||||||||||||||||
| Liabilities and Equity | |||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing deposits: | |||||||||||||||||||||||||||||||||||||||||||
| Interest checking | $ | 195,258 | $ | 53 | 0.11 | $ | 177,787 | $ | 50 | 0.11 | $ | 164,533 | $ | 47 | 0.11 | ||||||||||||||||||||||||||||
| Money market | 1,133,676 | 972 | 0.35 | 1,105,701 | 1,001 | 0.36 | 891,110 | 820 | 0.37 | ||||||||||||||||||||||||||||||||||
| Savings | 103,449 | 38 | 0.15 | 101,170 | 38 | 0.15 | 94,773 | 38 | 0.16 | ||||||||||||||||||||||||||||||||||
| Retail certificates of deposit | 372,208 | 685 | 0.75 | 379,892 | 696 | 0.73 | 432,182 | 900 | 0.84 | ||||||||||||||||||||||||||||||||||
| Wholesale/brokered certificates of deposit | 201,774 | 387 | 0.78 | 214,690 | 391 | 0.72 | 150,642 | 264 | 0.70 | ||||||||||||||||||||||||||||||||||
| Total interest-bearing deposits | 2,006,365 | 2,135 | 0.43 | 1,979,240 | 2,176 | 0.44 | 1,733,240 | 2,069 | 0.48 | ||||||||||||||||||||||||||||||||||
| FHLB advances and other borrowings | 265,224 | 604 | 0.92 | 121,397 | 332 | 1.09 | 111,444 | 325 | 1.17 | ||||||||||||||||||||||||||||||||||
| Subordinated debentures | 69,394 | 985 | 5.68 | 69,364 | 985 | 5.68 | 69,274 | 910 | 5.25 | ||||||||||||||||||||||||||||||||||
| Total borrowings | 334,618 | 1,589 | 1.93 | 190,761 | 1,317 | 2.75 | 180,718 | 1,235 | 2.75 | ||||||||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 2,340,983 | 3,724 | 0.65 | 2,170,001 | 3,493 | 0.64 | 1,913,958 | 3,304 | 0.69 | ||||||||||||||||||||||||||||||||||
| Noninterest-bearing deposits | 1,208,045 | 1,200,536 | 950,526 | ||||||||||||||||||||||||||||||||||||||||
| Other liabilities | 30,297 | 31,963 | 27,369 | ||||||||||||||||||||||||||||||||||||||||
| Total liabilities | 3,579,325 | 3,402,500 | 2,891,853 | ||||||||||||||||||||||||||||||||||||||||
| Stockholders' equity | 469,432 | 458,603 | 379,574 | ||||||||||||||||||||||||||||||||||||||||
| Total liabilities and equity | $ | 4,048,757 | $ | 3,861,103 | $ | 3,271,427 | |||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 41,703 | $ | 42,304 | $ | 34,201 | |||||||||||||||||||||||||||||||||||||
| Net interest margin (2) | 4.39 | % | 4.59 | % | 4.43 | % | |||||||||||||||||||||||||||||||||||||
| Ratio of interest-earning assets to interest-bearing liabilities | 164.58 | % | 168.97 | % | 162.20 | % | |||||||||||||||||||||||||||||||||||||
| (1) Average balance includes nonperforming loans and is net of deferred loan origination fees, unamortized discounts and premiums. | |||||||||||||||||||||||||||||||||||||||||||
| (2) Represents net interest income divided by average interest-earning assets. | |||||||||||||||||||||||||||||||||||||||||||
| PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||
| LOAN PORTFOLIO COMPOSITION | ||||||||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||||
| 2017 | 2016 | 2016 | 2016 | 2016 | ||||||||||||||||||||||||||
| Loan Portfolio | ||||||||||||||||||||||||||||||
| Business loans: | ||||||||||||||||||||||||||||||
| Commercial and industrial | $ | 593,457 | $ | 563,169 | $ | 537,809 | $ | 508,141 | $ | 491,112 | ||||||||||||||||||||
| Franchise | 493,158 | 459,421 | 431,618 | 403,855 | 371,875 | |||||||||||||||||||||||||
| Commercial owner occupied | 482,295 | 454,918 | 460,068 | 443,060 | 424,289 | |||||||||||||||||||||||||
| SBA | 107,233 | 96,705 | 92,195 | 86,076 | 78,350 | |||||||||||||||||||||||||
| Warehouse facilities | — | — | — | — | 1,394 | |||||||||||||||||||||||||
| Real estate loans: | ||||||||||||||||||||||||||||||
| Commercial non-owner occupied | 612,787 | 586,975 | 527,412 | 526,362 | 522,080 | |||||||||||||||||||||||||
| Multi-family | 682,237 | 690,955 | 689,813 | 613,573 | 619,485 | |||||||||||||||||||||||||
| One-to-four family | 100,423 | 100,451 | 101,377 | 106,538 | 106,854 | |||||||||||||||||||||||||
| Construction | 298,279 | 269,159 | 231,098 | 215,786 | 218,069 | |||||||||||||||||||||||||
| Land | 19,738 | 19,829 | 18,472 | 18,341 | 18,222 | |||||||||||||||||||||||||
| Other loans | 3,930 | 4,112 | 5,678 | 5,822 | 6,045 | |||||||||||||||||||||||||
| Total gross loans | 3,393,537 | 3,245,694 | 3,095,540 | 2,927,554 | 2,857,775 | |||||||||||||||||||||||||
| Plus: Deferred loan origination costs/(fees) and premiums/(discounts), net | 3,250 | 3,630 | 4,308 | 3,181 | 953 | |||||||||||||||||||||||||
| Total loans | 3,396,787 | 3,249,324 | 3,099,848 | 2,930,735 | 2,858,728 | |||||||||||||||||||||||||
| Less: Loans held for sale, at lower of cost or fair value | 11,090 | 7,711 | 9,009 | 10,116 | 7,281 | |||||||||||||||||||||||||
| Loans held for investment | 3,385,697 | 3,241,613 | 3,090,839 | 2,920,619 | 2,851,447 | |||||||||||||||||||||||||
| Allowance for loan losses | (23,075 | ) | (21,296 | ) | (21,843 | ) | (18,955 | ) | (18,455 | ) | ||||||||||||||||||||
| Loans held for investment, net | $ | 3,362,622 | $ | 3,220,317 | $ | 3,068,996 | $ | 2,901,664 | $ | 2,832,992 | ||||||||||||||||||||
| PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||
| ASSET QUALITY INFORMATION | ||||||||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||||
| 2017 | 2016 | 2016 | 2016 | 2016 | ||||||||||||||||||||||||||
| Asset Quality | ||||||||||||||||||||||||||||||
| Nonaccrual loans | $ | 513 | $ | 1,141 | $ | 5,734 | $ | 4,062 | $ | 4,823 | ||||||||||||||||||||
| Other real estate owned | 460 | 460 | 711 | 711 | 1,161 | |||||||||||||||||||||||||
| Nonperforming assets | $ | 973 | $ | 1,601 | $ | 6,445 | $ | 4,773 | $ | 5,984 | ||||||||||||||||||||
| Allowance for loan losses | $ | 23,075 | $ | 21,296 | $ | 21,843 | $ | 18,955 | $ | 18,455 | ||||||||||||||||||||
| Allowance for loan losses as a percent of total nonperforming loans | 4,498 | % | 1,866 | % | 381 | % | 467 | % | 383 | % | ||||||||||||||||||||
| Nonperforming loans as a percent of loans held for investment | 0.02 | % | 0.04 | % | 0.19 | % | 0.14 | % | 0.17 | % | ||||||||||||||||||||
| Nonperforming assets as a percent of total assets | 0.02 | % | 0.04 | % | 0.17 | % | 0.13 | % | 0.17 | % | ||||||||||||||||||||
| Net loan charge-offs (recoveries) for the quarter ended | $ | 723 | $ | 2,601 | $ | 1,125 | $ | 1,089 | $ | (18 | ) | |||||||||||||||||||
| Net loan charge-offs (recoveries) for quarter to average total loans, net | 0.02 | % | 0.08 | % | 0.04 | % | 0.04 | % | — | % | ||||||||||||||||||||
| Allowance for loan losses to loans held for investment | 0.68 | % | 0.66 | % | 0.71 | % | 0.65 | % | 0.65 | % | ||||||||||||||||||||
| Delinquent Loans: | ||||||||||||||||||||||||||||||
| 30 - 59 days | $ | 117 | $ | 122 | $ | 1,042 | $ | 1,144 | $ | 247 | ||||||||||||||||||||
| 60 - 89 days | — | 71 | 1,990 | 2,487 | — | |||||||||||||||||||||||||
| 90+ days | 360 | 639 | 2,646 | 1,797 | 3,199 | |||||||||||||||||||||||||
| Total delinquency | $ | 477 | $ | 832 | $ | 5,678 | $ | 5,428 | $ | 3,446 | ||||||||||||||||||||
| Delinquency as a percent of loans held for investment | 0.01 | % | 0.03 | % | 0.18 | % | 0.19 | % | 0.12 | % | ||||||||||||||||||||
| PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||
| DEPOSIT COMPOSITION | |||||||||||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||||||||
| 2017 | 2016 | 2016 | 2016 | 2016 | |||||||||||||||||||||||||
| Deposit Accounts | |||||||||||||||||||||||||||||
| Noninterest-bearing checking | $ | 1,232,578 | $ | 1,185,768 | $ | 1,160,394 | $ | 1,043,361 | $ | 1,066,861 | |||||||||||||||||||
| Interest-bearing: | |||||||||||||||||||||||||||||
| Checking | 191,399 | 182,893 | 181,534 | 181,859 | 169,766 | ||||||||||||||||||||||||
| Money market/savings | 1,273,917 | 1,202,361 | 1,145,609 | 1,086,255 | 1,084,989 | ||||||||||||||||||||||||
| Retail certificates of deposit | 381,738 | 375,203 | 384,083 | 420,673 | 455,637 | ||||||||||||||||||||||||
| Wholesale/brokered certificates of deposit | 217,441 | 199,356 | 188,132 | 198,853 | 129,129 | ||||||||||||||||||||||||
| Total interest-bearing | 2,064,495 | 1,959,813 | 1,899,358 | 1,887,640 | 1,839,521 | ||||||||||||||||||||||||
| Total deposits | $ | 3,297,073 | $ | 3,145,581 | $ | 3,059,752 | $ | 2,931,001 | $ | 2,906,382 | |||||||||||||||||||
| PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||
| GAAP RECONCILIATIONS | ||||||||||||||||||||||||||||||
| (dollars in thousands, except per share data) | ||||||||||||||||||||||||||||||
| Tangible common equity to tangible assets (the "tangible common equity ratio") and tangible book value per share are non-GAAP financial measures derived from GAAP-based amounts. We calculate the tangible common equity ratio by excluding the balance of intangible assets from common stockholders' equity and dividing by tangible assets. We calculate tangible book value per share by dividing tangible common equity by common shares outstanding, as compared to book value per share, which we calculate by dividing common stockholders' equity by shares outstanding. We believe that this information is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios. Accordingly, we believe that these non-GAAP financial measures provide information that is important to investors and that is useful in understanding our capital position and ratios. However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these measures, this presentation may not be comparable to other similarly titled measures reported by other companies. | ||||||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||||
| 2017 | 2016 | 2016 | 2016 | 2016 | ||||||||||||||||||||||||||
| Total stockholders' equity | $ | 471,025 | $ | 459,740 | $ | 449,965 | $ | 440,630 | $ | 428,894 | ||||||||||||||||||||
| Less intangible assets | (111,432 | ) | (111,941 | ) | (111,915 | ) | (112,439 | ) | (113,084 | ) | ||||||||||||||||||||
| Tangible common equity | $ | 359,593 | $ | 347,799 | $ | 338,050 | $ | 328,191 | $ | 315,810 | ||||||||||||||||||||
| Book value per share | $ | 16.88 | $ | 16.54 | $ | 16.27 | $ | 15.94 | $ | 15.58 | ||||||||||||||||||||
| Less intangible book value per share | (4.00 | ) | (4.03 | ) | (4.05 | ) | (4.07 | ) | (4.11 | ) | ||||||||||||||||||||
| Tangible book value per share | $ | 12.88 | $ | 12.51 | $ | 12.22 | $ | 11.87 | $ | 11.47 | ||||||||||||||||||||
| Total assets | $ | 4,174,428 | $ | 4,036,311 | $ | 3,754,831 | $ | 3,597,666 | $ | 3,562,068 | ||||||||||||||||||||
| Less intangible assets | (111,432 | ) | (111,941 | ) | (111,915 | ) | (112,439 | ) | (113,084 | ) | ||||||||||||||||||||
| Tangible assets | $ | 4,062,996 | $ | 3,924,370 | $ | 3,642,916 | $ | 3,485,227 | $ | 3,448,984 | ||||||||||||||||||||
| Tangible common equity ratio | 8.85 | % | 8.86 | % | 9.28 | % | 9.42 | % | 9.16 | % | ||||||||||||||||||||
