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Pacific Premier Bancorp, Inc. Announces Second Quarter 2024 Financial Results and a Quarterly Cash Dividend of $0.33 Per Share

Second Quarter 2024 Summary

  • Net income of $41.9 million, or $0.43 per diluted share
  • Return on average assets of 0.90%
  • Pre-provision net revenue (“PPNR”)(1) to average assets of 1.23%, annualized
  • Net interest margin of 3.26%
  • Cost of deposits of 1.73%, and cost of non-maturity deposits(1) of 1.17%
  • Non-maturity deposits(1) to total deposits of 83.66%
  • Non-interest bearing deposits totaled 31.6% of total deposits
  • Total delinquency of 0.14% of loans held for investment
  • Nonperforming assets to total assets of 0.28%
  • Tangible book value per share(1) increased $0.25 from the prior quarter to $20.58
  • Common equity tier 1 capital ratio of 15.89%, and total risk-based capital ratio of 19.01%
  • Tangible common equity ratio (“TCE”)(1) increased to 11.41%

Pacific Premier Bancorp, Inc. (NASDAQ: PPBI) (the “Company” or “Pacific Premier”), the holding company of Pacific Premier Bank (the “Bank”), reported net income of $41.9 million, or $0.43 per diluted share, for the second quarter of 2024, compared with net income of $47.0 million, or $0.49 per diluted share, for the first quarter of 2024, and net income of $57.6 million, or $0.60 per diluted share, for the second quarter of 2023.

For the second quarter of 2024, the Company’s return on average assets (“ROAA”) was 0.90%, return on average equity (“ROAE”) was 5.76%, and return on average tangible common equity (“ROATCE”)(1) was 8.92%, compared to 0.99%, 6.50%, and 10.05%, respectively, for the first quarter of 2024, and 1.09%, 8.11%, and 12.66%, respectively, for the second quarter of 2023. Total assets were $18.33 billion at June 30, 2024, compared to $18.81 billion at March 31, 2024, and $20.75 billion at June 30, 2023.

Steven R. Gardner, Chairman, Chief Executive Officer, and President of the Company, commented, “We delivered solid financial results for the second quarter, producing net income of $41.9 million, or $0.43 per share. Our results reflect our disciplined approach to balance sheet and risk management, as well as our ongoing focus on capital accumulation. Our quarter-end tangible common equity(1) and tier 1 common equity ratios increased to 11.41% and 15.89%, respectively, placing us near the top of our peers for both ratios.

“Second quarter asset quality trends remained solid. Our nonperforming loans decreased to $52.1 million, reflecting our proactive approach to credit risk management. Overall, credit performance was consistent with our expectations as our borrowers are on solid financial footing and borrower cash flows generally do not appear to have deteriorated in any material way. Similar to our capital ratios, our allowance for credit losses ranks among the top of our peers.

“On the business development front, second quarter loan production increased to $150.7 million, as our teams continue to work collaboratively to expand our client base and reinforce existing long-term relationships. Additionally, we saw clients use excess deposits to pay down and pay off loans coupled with seasonal factors associated with tax payments and distributions, as total deposits declined from the prior quarter. Our deposit mix remained favorable, as brokered deposits declined by $87.9 million and noninterest-bearing deposits comprised 31.6% of total deposits.

“We enter the second half of the year from a position of strength and expect stabilization in our loan and deposit balances as we move through the rest of the year. Our strong capital and liquidity levels provide us with significant optionality and positions us well to take advantage of opportunities that may arise to drive future earnings growth as we continue to serve our small- and middle-market businesses and focus on building long-term franchise value. I want to thank all of our employees for their exceptional contributions this quarter and during the first half of 2024, as well as all of our stakeholders for their ongoing support.”

FINANCIAL HIGHLIGHTS

 

 

Three Months Ended

 

 

June 30,

 

March 31,

 

June 30,

(Dollars in thousands, except per share data)

 

2024

 

2024

 

2023

Financial highlights (unaudited)

 

 

 

 

 

 

Net income

 

$

41,905

 

 

$

47,025

 

 

$

57,636

 

Net interest income

 

 

136,394

 

 

 

145,127

 

 

 

160,092

 

Diluted earnings per share

 

 

0.43

 

 

 

0.49

 

 

 

0.60

 

Common equity dividend per share paid

 

 

0.33

 

 

 

0.33

 

 

 

0.33

 

ROAA

 

 

0.90

%

 

 

0.99

%

 

 

1.09

%

ROAE

 

 

5.76

 

 

 

6.50

 

 

 

8.11

 

ROATCE (1)

 

 

8.92

 

 

 

10.05

 

 

 

12.66

 

Pre-provision net revenue to average assets (1)

 

 

1.23

 

 

 

1.43

 

 

 

1.52

 

Net interest margin

 

 

3.26

 

 

 

3.39

 

 

 

3.33

 

Cost of deposits

 

 

1.73

 

 

 

1.59

 

 

 

1.27

 

Cost of non-maturity deposits (1)

 

 

1.17

 

 

 

1.06

 

 

 

0.71

 

Efficiency ratio (1)

 

 

61.3

 

 

 

60.2

 

 

 

54.1

 

Noninterest expense as a percent of average assets

 

 

2.10

 

 

 

2.16

 

 

 

1.91

 

Total assets

 

$

18,332,325

 

 

$

18,813,181

 

 

$

20,747,883

 

Total deposits

 

 

14,627,654

 

 

 

15,187,828

 

 

 

16,539,875

 

Non-maturity deposits (1) as a percent of total deposits

 

 

83.7

%

 

 

84.4

%

 

 

81.4

%

Noninterest-bearing deposits as a percent of total deposits

 

 

31.6

 

 

 

32.9

 

 

 

35.6

 

Loan-to-deposit ratio

 

 

85.4

 

 

 

85.7

 

 

 

82.3

 

Nonperforming assets as a percent of total assets

 

 

0.28

 

 

 

0.34

 

 

 

0.08

 

Delinquency as a percentage of loans held for investment

 

 

0.14

 

 

 

0.09

 

 

 

0.23

 

Allowance for credit losses to loans held for investment (2)

 

 

1.47

 

 

 

1.48

 

 

 

1.41

 

Book value per share

 

$

30.32

 

 

$

30.09

 

 

$

29.71

 

Tangible book value per share (1)

 

 

20.58

 

 

 

20.33

 

 

 

19.79

 

Tangible common equity ratio (1)

 

 

11.41

%

 

 

10.97

%

 

 

9.59

%

Common equity tier 1 capital ratio

 

 

15.89

 

 

 

15.02

 

 

 

14.34

 

Total capital ratio

 

 

19.01

 

 

 

18.23

 

 

 

17.24

 

______________________________

(1)

Reconciliations of the non-GAAP measures are set forth at the end of this press release.

(2)

At June 30, 2024, 25% of loans held for investment include a fair value net discount of $38.6 million, or 0.31% of loans held for investment. At March 31, 2024, 25% of loans held for investment include a fair value net discount of $41.2 million, or 0.32% of loans held for investment. At June 30, 2023, 25% of loans held for investment include a fair value net discount of $48.4 million, or 0.35% of loans held for investment.

INCOME STATEMENT HIGHLIGHTS

Net Interest Income and Net Interest Margin

Net interest income totaled $136.4 million in the second quarter of 2024, a decrease of $8.7 million, or 6.0%, from the first quarter of 2024. The decrease in net interest income was primarily attributable to lower average loan balances and higher cost of deposits.

The net interest margin for the second quarter of 2024 decreased 13 basis points to 3.26%, from 3.39% in the prior quarter. The decrease was primarily due to a higher cost of deposits.

Net interest income for the second quarter of 2024 decreased $23.7 million, or 14.8%, compared to the second quarter of 2023. The decrease was attributable to a higher cost of funds and lower average interest-earning asset balances, partially offset by lower average interest-bearing liabilities and higher yields on average interest-earning assets, all the result of the higher interest rate environment and the Company's balance sheet management strategies to prioritize capital accumulation.

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED AVERAGE BALANCES AND YIELD DATA

(Unaudited)

 

 

Three Months Ended

 

 

June 30, 2024

 

March 31, 2024

 

June 30, 2023

(Dollars in thousands)

 

Average

Balance

 

Interest

Income/

Expense

 

Average

Yield/

Cost

 

Average

Balance

 

Interest

Income/

Expense

 

Average

Yield/

Cost

 

Average

Balance

 

Interest

Income/

Expense

 

Average

Yield/

Cost

Assets

 

 

Cash and cash equivalents

 

$

1,134,736

 

$

13,666

 

4.84

%

 

$

1,140,909

 

$

13,638

 

4.81

%

 

$

1,433,137

 

$

16,600

 

4.65

%

Investment securities

 

 

2,964,909

 

 

 

26,841

 

 

3.62

 

 

 

2,948,170

 

 

 

26,818

 

 

3.64

 

 

 

3,926,568

 

 

 

25,936

 

 

2.64

 

Loans receivable, net (1) (2)

 

 

12,724,545

 

 

 

167,547

 

 

5.30

 

 

 

13,149,038

 

 

 

172,975

 

 

5.29

 

 

 

13,927,145

 

 

 

182,852

 

 

5.27

 

Total interest-earning assets

 

$

16,824,190

 

 

$

208,054

 

 

4.97

 

 

$

17,238,117

 

 

$

213,431

 

 

4.98

 

 

$

19,286,850

 

 

$

225,388

 

 

4.69

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

10,117,571

 

 

$

64,229

 

 

2.55

%

 

$

10,058,808

 

 

$

59,506

 

 

2.38

%

 

$

10,797,708

 

 

$

53,580

 

 

1.99

%

Borrowings

 

 

532,251

 

 

 

7,431

 

 

5.59

 

 

 

850,811

 

 

 

8,798

 

 

4.15

 

 

 

1,131,465

 

 

 

11,716

 

 

4.15

 

Total interest-bearing liabilities

 

$

10,649,822

 

 

$

71,660

 

 

2.71

 

 

$

10,909,619

 

 

$

68,304

 

 

2.52

 

 

$

11,929,173

 

 

$

65,296

 

 

2.20

 

Noninterest-bearing deposits

 

$

4,824,002

 

 

 

 

 

 

$

4,996,939

 

 

 

 

 

 

$

6,078,543

 

 

 

 

 

Net interest income

 

 

 

$

136,394

 

 

 

 

 

 

$

145,127

 

 

 

 

 

 

$

160,092

 

 

 

Net interest margin (3)

 

 

 

 

 

3.26

%

 

 

 

 

 

3.39

%

 

 

 

 

 

3.33

%

Cost of deposits (4)

 

 

 

 

 

1.73

 

 

 

 

 

 

1.59

 

 

 

 

 

 

1.27

 

Cost of funds (5)

 

 

 

 

 

1.86

 

 

 

 

 

 

1.73

 

 

 

 

 

 

1.45

 

Cost of non-maturity deposits (6)

 

 

 

 

 

1.17

 

 

 

 

 

 

1.06

 

 

 

 

 

 

0.71

 

Ratio of interest-earning assets to interest-bearing liabilities

 

157.98

 

 

 

 

 

 

158.01

 

 

 

 

 

 

161.68

 

_______________________________________

(1)

Average balance includes loans held for sale and nonperforming loans and is net of deferred loan origination fees/costs, discounts/premiums, and the basis adjustment of certain loans included in fair value hedging relationships.

(2)

Interest income includes net discount accretion of $2.3 million, $2.1 million, and $2.9 million for the three months ended June 30, 2024, March 31, 2024, and June 30, 2023, respectively.

(3)

Represents annualized net interest income divided by average interest-earning assets.

(4)

Represents annualized interest expense on deposits divided by the sum of average interest-bearing deposits and noninterest-bearing deposits.

(5)

Represents annualized total interest expense divided by the sum of average total interest-bearing liabilities and noninterest-bearing deposits.

(6)

Reconciliations of the non-GAAP measures are set forth at the end of this press release.

Provision for Credit Losses

For the second quarter of 2024, the Company recorded a $1.3 million provision expense, compared to $3.9 million for the first quarter of 2024, and $1.5 million for the second quarter of 2023. The decrease in provision for credit losses compared to the first quarter of 2024 was largely attributable to the decrease in loan balances and changes in the loan composition, partially offset by increases associated with economic and market forecasts.

 

 

Three Months Ended

 

 

June 30,

 

March 31,

 

June 30,

(Dollars in thousands)

 

2024

 

2024

 

2023

Provision for credit losses

 

 

 

 

 

 

Provision for loan losses

 

$

1,756

 

 

$

6,288

 

 

$

610

 

Provision for unfunded commitments

 

 

(505

)

 

 

(2,425

)

 

 

1,003

 

Provision for held-to-maturity securities

 

 

14

 

 

 

(11

)

 

 

(114

)

Total provision for credit losses

 

$

1,265

 

 

$

3,852

 

 

$

1,499

 

Noninterest Income

Noninterest income for the second quarter of 2024 was $18.2 million, a decrease of $7.6 million from the first quarter of 2024. The decrease was primarily due to the prior quarter's $5.1 million gain on debt extinguishment resulting from an early redemption of a $200.0 million Federal Home Loan Bank of San Francisco (“FHLB”) term advance, a $1.7 million decrease in trust custodial account fees largely driven by annual tax fees earned during the prior quarter, and a $1.3 million decrease in Community Reinvestment Act ("CRA") investment income.

Noninterest income for the second quarter of 2024 decreased $2.3 million compared to the second quarter of 2023. The decrease was primarily due to a $2.2 million decrease in other income.

 

 

Three Months Ended

 

 

June 30,

 

March 31,

 

June 30,

(Dollars in thousands)

 

2024

 

2024

 

2023

Noninterest income

 

 

 

 

 

 

Loan servicing income

 

$

510

 

 

$

529

 

$

493

Service charges on deposit accounts

 

 

2,710

 

 

 

2,688

 

 

 

2,670

 

Other service fee income

 

 

309

 

 

 

336

 

 

 

315

 

Debit card interchange fee income

 

 

925

 

 

 

765

 

 

 

914

 

Earnings on bank owned life insurance

 

 

4,218

 

 

 

4,159

 

 

 

3,487

 

Net gain from sales of loans

 

 

65

 

 

 

 

 

 

345

 

Trust custodial account fees

 

 

8,950

 

 

 

10,642

 

 

 

9,360

 

Escrow and exchange fees

 

 

702

 

 

 

696

 

 

 

924

 

Other (loss) income

 

 

(167

)

 

 

5,959

 

 

 

2,031

 

Total noninterest income

 

$

18,222

 

 

$

25,774

 

 

$

20,539

 

Noninterest Expense

Noninterest expense totaled $97.6 million for the second quarter of 2024, a decrease of $5.1 million compared to the first quarter of 2024. The decrease was primarily due to a $3.1 million decrease in legal and professional services, driven by a $4.0 million insurance claim receivable.

Noninterest expense for the second quarter of 2024 decreased by $3.1 million compared to the second quarter of 2023. The decrease was primarily due to a $3.6 million decrease in legal and professional services, driven by a $4.0 million insurance claim receivable, and a $1.1 million decrease in premises and occupancy expense, partially offset by a $3.1 million increase in deposit expense due to higher deposit earnings credit rates.

 

 

Three Months Ended

 

 

June 30,

 

March 31,

 

June 30,

(Dollars in thousands)

 

2024

 

2024

 

2023

Noninterest expense

 

 

 

 

 

 

Compensation and benefits

 

$

53,140

 

$

54,130

 

$

53,424

Premises and occupancy

 

 

10,480

 

 

 

10,807

 

 

 

11,615

 

Data processing

 

 

7,754

 

 

 

7,511

 

 

 

7,488

 

Other real estate owned operations, net

 

 

 

 

 

46

 

 

 

8

 

FDIC insurance premiums

 

 

1,873

 

 

 

2,629

 

 

 

2,357

 

Legal and professional services

 

 

1,078

 

 

 

4,143

 

 

 

4,716

 

Marketing expense

 

 

1,724

 

 

 

1,558

 

 

 

1,879

 

Office expense

 

 

1,077

 

 

 

1,093

 

 

 

1,280

 

Loan expense

 

 

840

 

 

 

770

 

 

 

567

 

Deposit expense

 

 

12,289

 

 

 

12,665

 

 

 

9,194

 

Amortization of intangible assets

 

 

2,763

 

 

 

2,836

 

 

 

3,055

 

Other expense

 

 

4,549

 

 

 

4,445

 

 

 

5,061

 

Total noninterest expense

 

$

97,567

 

 

$

102,633

 

 

$

100,644

 

Income Tax

For the second quarter of 2024, income tax expense totaled $13.9 million, resulting in an effective tax rate of 24.9%, compared with income tax expense of $17.4 million and an effective tax rate of 27.0% for the first quarter of 2024, and income tax expense of $20.9 million and an effective tax rate of 26.6% for the second quarter of 2023.

BALANCE SHEET HIGHLIGHTS

Loans

Loans held for investment totaled $12.49 billion at June 30, 2024, a decrease of $522.1 million, or 4.0%, from March 31, 2024, and a decrease of $1.12 billion, or 8.2%, from June 30, 2023. The decrease from March 31, 2024 was primarily due to increased prepayments and maturities, and a decrease in credit line draws, partially offset by higher loan production and fundings.

During the second quarter of 2024, new origination activity increased, yet borrower demand for commercial loans remained muted given the uncertain economic and interest rate outlook. New loan commitments totaled $150.7 million, and new loan fundings totaled $58.6 million, compared with $45.6 million in loan commitments and $14.0 million in new loan fundings for the first quarter of 2024, and $148.5 million in loan commitments and $71.6 million in new loan fundings for the second quarter of 2023.

At June 30, 2024, the total loan-to-deposit ratio was 85.4%, compared to 85.7% and 82.3% at March 31, 2024 and June 30, 2023, respectively.

The following table presents the primary loan roll-forward activities for total gross loans, including both loans held for investment and loans held for sale, during the quarters indicated:

 

Three Months Ended

 

June 30,

 

March 31,

 

June 30,

(Dollars in thousands)

2024

 

2024

 

2023

Beginning gross loan balance before basis adjustment

$

13,044,395

 

 

$

13,318,571

 

 

$

14,223,036

 

New commitments

 

150,666

 

 

 

45,563

 

 

 

148,482

 

Unfunded new commitments

 

(92,017

)

 

 

(31,531

)

 

 

(76,928

)

Net new fundings

 

58,649

 

 

 

14,032

 

 

 

71,554

 

Amortization/maturities/payoffs

 

(447,170

)

 

 

(358,863

)

 

 

(582,948

)

Net draws on existing lines of credit

 

(100,302

)

 

 

109,860

 

 

 

36,393

 

Loan sales

 

(23,750

)

 

 

(32,676

)

 

 

(78,349

)

Charge-offs

 

(13,530

)

 

 

(6,529

)

 

 

(3,986

)

Transferred to other real estate owned

 

 

 

 

 

 

 

(104

)

Net decrease

 

(526,103

)

 

 

(274,176

)

 

 

(557,440

)

Ending gross loan balance before basis adjustment

$

12,518,292

 

 

$

13,044,395

 

 

$

13,665,596

 

Basis adjustment associated with fair value hedge (1)

 

(28,201

)

 

 

(32,324

)

 

 

(53,130

)

Ending gross loan balance

$

12,490,091

 

 

$

13,012,071

 

 

$

13,612,466

 

______________________________

(1)

Represents the basis adjustment associated with the application of hedge accounting on certain loans.

The following table presents the composition of the loans held for investment as of the dates indicated:

 

 

June 30,

 

March 31,

 

June 30,

(Dollars in thousands)

 

2024

 

2024

 

2023

Investor loans secured by real estate

 

 

 

 

 

 

Commercial real estate (“CRE”) non-owner-occupied

 

$

2,245,474

 

 

$

2,309,252

 

 

$

2,571,246

 

Multifamily

 

 

5,473,606

 

 

 

5,558,966

 

 

 

5,788,030

 

Construction and land

 

 

453,799

 

 

 

486,734

 

 

 

428,287

 

SBA secured by real estate (1)

 

 

33,245

 

 

 

35,206

 

 

 

38,876

 

Total investor loans secured by real estate

 

 

8,206,124

 

 

 

8,390,158

 

 

 

8,826,439

 

Business loans secured by real estate (2)

 

 

 

 

 

 

CRE owner-occupied

 

 

2,096,485

 

 

 

2,149,362

 

 

 

2,281,721

 

Franchise real estate secured

 

 

274,645

 

 

 

294,938

 

 

 

318,539

 

SBA secured by real estate (3)

 

 

46,543

 

 

 

48,426

 

 

 

57,084

 

Total business loans secured by real estate

 

 

2,417,673

 

 

 

2,492,726

 

 

 

2,657,344

 

Commercial loans (4)

 

 

 

 

 

 

Commercial and industrial (“C&I”)

 

 

1,554,735

 

 

 

1,774,487

 

 

 

1,744,763

 

Franchise non-real estate secured

 

 

257,516

 

 

 

301,895

 

 

 

351,944

 

SBA non-real estate secured

 

 

10,346

 

 

 

10,946

 

 

 

9,688

 

Total commercial loans

 

 

1,822,597

 

 

 

2,087,328

 

 

 

2,106,395

 

Retail loans

 

 

 

 

 

 

Single family residential (5)

 

 

70,380

 

 

 

72,353

 

 

 

70,993

 

Consumer

 

 

1,378

 

 

 

1,830

 

 

 

2,241

 

Total retail loans

 

 

71,758

 

 

 

74,183

 

 

 

73,234

 

Loans held for investment before basis adjustment (6)

 

 

12,518,152

 

 

 

13,044,395

 

 

 

13,663,412

 

Basis adjustment associated with fair value hedge (7)

 

 

(28,201

)

 

 

(32,324

)

 

 

(53,130

)

Loans held for investment

 

 

12,489,951

 

 

 

13,012,071

 

 

 

13,610,282

 

Allowance for credit losses for loans held for investment

 

 

(183,803

)

 

 

(192,340

)

 

 

(192,333

)

Loans held for investment, net

 

$

12,306,148

 

 

$

12,819,731

 

 

$

13,417,949

 

 

 

 

 

 

 

 

Total unfunded loan commitments

 

$

1,601,870

 

 

$

1,459,515

 

 

$

2,202,647

 

Loans held for sale, at lower of cost or fair value

 

$

140

 

 

$

 

 

$

2,184

 

______________________________

(1)

SBA loans that are collateralized by hotel/motel real property.

(2)

Loans to businesses that are collateralized by real estate where the operating cash flow of the business is the primary source of repayment.

(3)

SBA loans that are collateralized by real property other than hotel/motel real property.

(4)

Loans to businesses where the operating cash flow of the business is the primary source of repayment.

(5)

Single family residential includes home equity lines of credit, as well as second trust deeds.

(6)

Includes net deferred origination costs of $1.4 million, $797,000, and $142,000, and unaccreted fair value net purchase discounts of $38.6 million, $41.2 million, and $48.4 million as of June 30, 2024, March 31, 2024, and June 30, 2023, respectively.

(7)

Represents the basis adjustment associated with the application of hedge accounting on certain loans.

The total end-of-period weighted average interest rate on loans, excluding fees and discounts, at June 30, 2024 was 4.88%, compared to 4.91% at March 31, 2024, and 4.73% at June 30, 2023. The decrease was a result of customers paying down and paying off higher-rate loans compared to the prior quarter. The year-over-year increase reflects higher rates on new originations and the repricing of loans as a result of the increases in benchmark interest rates.

The following table presents the composition of loan commitments originated during the quarters indicated:

 

 

Three Months Ended

 

 

June 30,

 

March 31,

 

June 30,

(Dollars in thousands)

 

2024

 

2024

 

2023

Investor loans secured by real estate

 

 

 

 

 

 

CRE non-owner-occupied

 

$

3,818

 

$

850

 

$

1,470

Multifamily

 

 

6,026

 

 

 

480

 

 

 

53,522

 

Construction and land

 

 

16,820

 

 

 

 

 

 

24,525

 

Total investor loans secured by real estate

 

 

26,664

 

 

 

1,330

 

 

 

79,517

 

Business loans secured by real estate (1)

 

 

 

 

 

 

CRE owner-occupied

 

 

2,623

 

 

 

6,745

 

 

 

3,062

 

Total business loans secured by real estate

 

 

2,623

 

 

 

6,745

 

 

 

3,062

 

Commercial loans (2)

 

 

 

 

 

 

Commercial and industrial

 

 

109,679

 

 

 

32,477

 

 

 

58,730

 

Franchise non-real estate secured

 

 

 

 

 

 

 

 

1,853

 

SBA non-real estate secured

 

 

1,281

 

 

 

 

 

 

1,612

 

Total commercial loans

 

 

110,960

 

 

 

32,477

 

 

 

62,195

 

Retail loans

 

 

 

 

 

 

Single family residential (3)

 

 

7,698

 

 

 

4,936

 

 

 

3,708

 

Consumer

 

 

2,721

 

 

 

75

 

 

 

 

Total retail loans

 

 

10,419

 

 

 

5,011

 

 

 

3,708

 

Total loan commitments

 

$

150,666

 

 

$

45,563

 

 

$

148,482

 

______________________________

(1)

Loans to businesses that are collateralized by real estate where the operating cash flow of the business is the primary source of repayment.

(2)

Loans to businesses where the operating cash flow of the business is the primary source of repayment.

(3)

Single family residential includes home equity lines of credit, as well as second trust deeds.

The weighted average interest rate on new loan commitments of 8.58% in the second quarter of 2024 was relatively consistent with 8.62% in the first quarter of 2024, and increased from 6.72% in the second quarter of 2023.

Allowance for Credit Losses

At June 30, 2024, our allowance for credit losses (“ACL”) on loans held for investment was $183.8 million, a decrease of $8.5 million from March 31, 2024 and June 30, 2023. The decrease in the ACL from March 31, 2024 and June 30, 2023 reflects the relative changes in size and composition in our loans held for investment, partially offset by changes in economic and market forecasts.

During the second quarter of 2024, the Company incurred $10.3 million of net charge-offs, primarily related to the sale of substandard non-owner-occupied CRE and multifamily loans during the quarter.

The following table provides the allocation of the ACL for loans held for investment as well as the activity in the ACL attributed to various segments in the loan portfolio as of and for the period indicated:

 

Three Months Ended June 30, 2024

(Dollars in thousands)

Beginning

ACL Balance

 

Charge-offs

 

Recoveries

 

Provision for

Credit

Losses

 

Ending

ACL Balance

Investor loans secured by real estate

 

 

 

 

 

 

 

 

 

CRE non-owner-occupied

$

30,781

 

$

(4,196

)

 

$

1,500

 

$

1,653

 

 

$

29,738

Multifamily

 

58,411

 

 

 

(7,372

)

 

 

 

 

 

6,259

 

 

 

57,298

 

Construction and land

 

8,171

 

 

 

 

 

 

 

 

 

2,633

 

 

 

10,804

 

SBA secured by real estate (1)

 

2,184

 

 

 

(153

)

 

 

86

 

 

 

25

 

 

 

2,142

 

Business loans secured by real estate (2)

 

 

 

 

 

 

 

 

 

CRE owner-occupied

 

28,760

 

 

 

 

 

 

121

 

 

 

(350

)

 

 

28,531

 

Franchise real estate secured

 

7,258

 

 

 

 

 

 

 

 

 

(464

)

 

 

6,794

 

SBA secured by real estate (3)

 

4,288

 

 

 

 

 

 

1

 

 

 

(155

)

 

 

4,134

 

Commercial loans (4)

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

37,107

 

 

 

(968

)

 

 

148

 

 

 

(4,030

)

 

 

32,257

 

Franchise non-real estate secured

 

14,320

 

 

 

 

 

 

1,375

 

 

 

(4,565

)

 

 

11,130

 

SBA non-real estate secured

 

495

 

 

 

(6

)

 

 

3

 

 

 

(10

)

 

 

482

 

Retail loans

 

 

 

 

 

 

 

 

 

Single family residential (5)

 

442

 

 

 

 

 

 

3

 

 

 

(46

)

 

 

399

 

Consumer loans

 

123

 

 

 

(835

)

 

 

 

 

 

806

 

 

 

94

 

Totals

$

192,340

 

 

$

(13,530

)

 

$

3,237

 

 

$

1,756

 

 

$

183,803

 

______________________________

(1)

SBA loans that are collateralized by hotel/motel real property.

(2)

Loans to businesses that are collateralized by real estate where the operating cash flow of the business is the primary source of repayment.

(3)

SBA loans that are collateralized by real property other than hotel/motel real property.

(4)

Loans to businesses where the operating cash flow of the business is the primary source of repayment.

(5)

Single family residential includes home equity lines of credit, as well as second trust deeds.

The ratio of ACL to loans held for investment at June 30, 2024 was 1.47%, which was relatively consistent with 1.48% at March 31, 2024, and increased from 1.41% at June 30, 2023. The fair value net discount on loans acquired through acquisitions was $38.6 million, or 0.31% of total loans held for investment, as of June 30, 2024, compared to $41.2 million, or 0.32% of total loans held for investment, as of March 31, 2024, and $48.4 million, or 0.35% of total loans held for investment, as of June 30, 2023.

Asset Quality

Nonperforming assets totaled $52.1 million, or 0.28% of total assets, at June 30, 2024, compared with $64.1 million, or 0.34% of total assets, at March 31, 2024, and $17.4 million, or 0.08% of total assets, at June 30, 2023. Loan delinquencies were $17.9 million, or 0.14% of loans held for investment, at June 30, 2024, compared to $12.2 million, or 0.09% of loans held for investment, at March 31, 2024, and $31.0 million, or 0.23% of loans held for investment, at June 30, 2023.

Classified loans totaled $183.8 million, or 1.47% of loans held for investment, at June 30, 2024, compared with $204.7 million, or 1.57% of loans held for investment, at March 31, 2024, and $119.9 million, or 0.88% of loans held for investment, at June 30, 2023.

The following table presents the asset quality metrics of the loan portfolio as of the dates indicated.

 

 

June 30,

 

March 31,

 

June 30,

(Dollars in thousands)

 

2024

 

2024

 

2023

Asset quality

 

 

 

 

 

 

Nonperforming loans

$

52,119

 

 

$

63,806

 

 

$

17,151

Other real estate owned

 

 

 

 

 

248

 

 

 

270

 

Nonperforming assets

 

$

52,119

 

 

$

64,054

 

 

$

17,421

 

 

 

 

 

 

 

 

Total classified assets (1)

 

$

183,833

 

 

$

204,937

 

 

$

120,216

 

Allowance for credit losses

 

 

183,803

 

 

 

192,340

 

 

 

192,333

 

Allowance for credit losses as a percent of total nonperforming loans

 

 

353

%

 

 

301

%

 

 

1,121

%

Nonperforming loans as a percent of loans held for investment

 

 

0.42

 

 

 

0.49

 

 

 

0.13

 

Nonperforming assets as a percent of total assets

 

 

0.28

 

 

 

0.34

 

 

 

0.08

 

Classified loans to total loans held for investment

 

 

1.47

 

 

 

1.57

 

 

 

0.88

 

Classified assets to total assets

 

 

1.00

 

 

 

1.09

 

 

 

0.58

 

Net loan charge-offs for the quarter ended

 

$

10,293

 

 

$

6,419

 

 

$

3,665

 

Net loan charge-offs for the quarter to average total loans

 

 

0.08

%

 

 

0.05

%

 

 

0.03

%

Allowance for credit losses to loans held for investment (2)

 

 

1.47

 

 

 

1.48

 

 

 

1.41

 

Delinquent loans (3)

 

 

 

 

 

 

30 - 59 days

 

$

4,985

 

 

$

1,983

 

 

$

649

 

60 - 89 days

 

 

3,289

 

 

 

974

 

 

 

31

 

90+ days

 

 

9,649

 

 

 

9,221

 

 

 

30,271

 

Total delinquency

 

$

17,923

 

 

$

12,178

 

 

$

30,951

 

Delinquency as a percentage of loans held for investment

 

 

0.14

%

 

 

0.09

%

 

 

0.23

%

______________________________

(1)

Includes substandard and doubtful loans, and other real estate owned.

(2)

At June 30, 2024, 25% of loans held for investment include a fair value net discount of $38.6 million, or 0.31% of loans held for investment. At March 31, 2024, 25% of loans held for investment include a fair value net discount of $41.2 million, or 0.32% of loans held for investment. At June 30, 2023, 25% of loans held for investment include a fair value net discount of $48.4 million, or 0.35% of loans held for investment.

(3)

Nonaccrual loans are included in this aging analysis based on the loan's past due status.

Investment Securities

At June 30, 2024, available-for-sale (“AFS”) and held-to-maturity (“HTM”) investment securities were $1.32 billion and $1.71 billion, respectively, compared to $1.15 billion and $1.72 billion, respectively, at March 31, 2024, and $2.01 billion and $1.74 billion, respectively, at June 30, 2023.

In total, investment securities were $3.03 billion at June 30, 2024, an increase of $155.7 million from March 31, 2024, and a decrease of $719.2 million from June 30, 2023. The increase in the second quarter of 2024 compared to the prior quarter was primarily the result of $443.1 million in purchases of AFS U.S. Treasury securities and a decrease of $4.2 million in AFS investment securities mark-to-market unrealized loss, partially offset by $291.5 million in principal payments, amortization and accretion, and redemptions.

The decrease in investment securities from June 30, 2023 was the result of $1.52 billion in sales of AFS investment securities, primarily related to the investment securities portfolio repositioning during the fourth quarter of 2023, and $611.5 million in principal payments, amortization and accretion, and redemptions, partially offset by $1.17 billion in purchases of AFS and HTM investment securities and a decrease of $244.9 million in AFS securities mark-to-market unrealized loss.

Deposits

At June 30, 2024, total deposits were $14.63 billion, a decrease of $560.2 million, or 3.7%, from March 31, 2024, and a decrease of $1.91 billion, or 11.6%, from June 30, 2023. The decrease from the prior quarter was largely driven by reductions of $381.5 million in noninterest-bearing checking, $193.1 million in money market and savings, $87.9 million in brokered certificates of deposit, and $9.4 million in interest-bearing checking, partially offset by an increase of $111.7 million in retail certificates of deposit. The decrease from June 30, 2023 was attributable to decreases of $1.28 billion in noninterest-bearing checking and $1.23 billion in brokered certificates of deposit, partially offset by an increase of $540.5 million in retail certificates of deposit.

At June 30, 2024, non-maturity deposits(1) totaled $12.24 billion, or 83.7% of total deposits, a decrease of $584.0 million, or 4.6%, from March 31, 2024, and a decrease of $1.22 billion, or 9.1%, from June 30, 2023. The decrease from the prior quarters was attributable to clients utilizing their deposit balances to prepay or pay down loans, seasonal tax payments and distributions, as well as redeploying funds into higher yielding alternatives.

At June 30, 2024, maturity deposits totaled $2.39 billion, an increase of $23.8 million, or 1.0%, from March 31, 2024, and a decrease of $692.0 million, or 22.4%, from June 30, 2023. The increase in the second quarter of 2024 compared to the prior quarter was primarily driven by an increase of $111.7 million in retail certificates of deposit, partially offset by the reduction of $87.9 million in brokered certificates of deposit. The decrease from June 30, 2023 was primarily driven by decreases in brokered certificates of deposit.

The weighted average cost of total deposits for the second quarter of 2024 was 1.73%, compared to 1.59% for the first quarter of 2024, and 1.27% for the second quarter of 2023, both increases principally driven by higher pricing across deposit categories. The weighted average cost of non-maturity deposits(1) for the second quarter of 2024 was 1.17%, compared to 1.06% for the first quarter of 2024, and 0.71% for the second quarter of 2023.

At June 30, 2024, the end-of-period weighted average rate of total deposits was 1.81%, compared to 1.66% at March 31, 2024, and 1.40% at June 30, 2023. At June 30, 2024, the end-of-period weighted average rate of non-maturity deposits was 1.25%, compared to 1.12% at March 31, 2024, and 0.78% at June 30, 2023.

At June 30, 2024, the Company’s FDIC-insured deposits as a percentage of total deposits was 61%. Insured and collateralized deposits comprised 67% of total deposits at June 30, 2024, which was the same level at March 31, 2024 and June 30, 2023.

______________________________

(1)

Reconciliations of the non-GAAP measures are set forth at the end of this press release.

The following table presents the composition of deposits as of the dates indicated.

 

 

June 30,

 

March 31,

 

June 30,

(Dollars in thousands)

 

2024

 

2024

 

2023

Deposit accounts

 

 

 

 

 

 

Noninterest-bearing checking

 

$

4,616,124

 

 

$

4,997,636

 

 

$

5,895,975

 

Interest-bearing:

 

 

 

 

 

 

Checking

 

 

2,776,212

 

 

 

2,785,626

 

 

 

2,759,855

 

Money market/savings

 

 

4,844,585

 

 

 

5,037,636

 

 

 

4,801,288

 

Total non-maturity deposits (1)

 

 

12,236,921

 

 

 

12,820,898

 

 

 

13,457,118

 

Retail certificates of deposit

 

 

1,906,552

 

 

 

1,794,813

 

 

 

1,366,071

 

Wholesale/brokered certificates of deposit

 

 

484,181

 

 

 

572,117

 

 

 

1,716,686

 

Total maturity deposits

 

 

2,390,733

 

 

 

2,366,930

 

 

 

3,082,757

 

Total deposits

 

$

14,627,654

 

 

$

15,187,828

 

 

$

16,539,875

 

 

 

 

 

 

 

 

Cost of deposits

 

 

1.73

%

 

 

1.59

%

 

 

1.27

%

Cost of non-maturity deposits (1)

 

 

1.17

 

 

 

1.06

 

 

 

0.71

 

Noninterest-bearing deposits as a percent of total deposits

 

 

31.6

 

 

 

32.9

 

 

 

35.6

 

Non-maturity deposits (1) as a percent of total deposits

 

 

83.7

 

 

 

84.4

 

 

 

81.4

 

______________________________

(1)

Reconciliations of the non-GAAP measures are set forth at the end of this press release.

Borrowings

At June 30, 2024, total borrowings amounted to $532.2 million, remaining flat from March 31, 2024, and a decrease of $599.4 million from June 30, 2023. Total borrowings at June 30, 2024 were comprised of $200.0 million of FHLB term advances and $332.2 million of subordinated debt. The decrease in borrowings at June 30, 2024 as compared to June 30, 2023 was due to a decrease of $600.0 million in FHLB term advances.

As of June 30, 2024, our unused borrowing capacity was $8.65 billion, which consists of available lines of credit with FHLB and other correspondent banks, as well as access through the Federal Reserve Bank's discount window, which was not utilized during the second quarter of 2024.

Capital Ratios

At June 30, 2024, our common stockholders' equity was $2.92 billion, or 15.95% of total assets, compared with $2.90 billion, or 15.43%, at March 31, 2024, and $2.85 billion, or 13.73%, at June 30, 2023, with a book value per share of $30.32, compared with $30.09 at March 31, 2024, and $29.71 at June 30, 2023. At June 30, 2024, the ratio of tangible common equity to tangible assets(1) increased 44 and 182 basis points to 11.41%, compared with 10.97% at March 31, 2024, and 9.59% at June 30, 2023, respectively. Tangible book value per share(1) increased $0.25 and $0.79 to $20.58, compared with $20.33 at March 31, 2024, and $19.79 at June 30, 2023, respectively.

______________________________

(1)

Reconciliations of the non-GAAP measures are set forth at the end of this press release.

The Company implemented the current expected credit losses (“CECL”) model on January 1, 2020 and elected to phase in the full effect of CECL on regulatory capital over the five-year transition period. In the first quarter of 2022, the Company began phasing into regulatory capital the cumulative adjustments at the end of the second year of the transition period at 25% per year. At June 30, 2024, the Company and Bank were in compliance with the capital conservation buffer requirement and exceeded the minimum Common Equity Tier 1, Tier 1, and total capital ratios, inclusive of the fully phased-in capital conservation buffer of 7.0%, 8.5%, and 10.5%, respectively, and the Bank qualified as “well capitalized” for purposes of the federal bank regulatory prompt corrective action regulations.

 

 

June 30,

 

March 31,

 

June 30,

Capital ratios

 

2024

 

2024

 

2023

Pacific Premier Bancorp, Inc. Consolidated

 

 

 

 

 

 

Tangible common equity ratio (1)

 

 

11.41

%

 

 

10.97

%

 

 

9.59

%

Tier 1 leverage ratio

 

 

11.87

 

 

 

11.48

 

 

 

10.90

 

Common equity tier 1 capital ratio

 

 

15.89

 

 

 

15.02

 

 

 

14.34

 

Tier 1 capital ratio

 

 

15.89

 

 

 

15.02

 

 

 

14.34

 

Total capital ratio

 

 

19.01

 

 

 

18.23

 

 

 

17.24

 

 

 

 

 

 

 

 

Pacific Premier Bank

 

 

 

 

 

 

Tier 1 leverage ratio

 

 

13.42

%

 

 

12.97

%

 

 

12.15

%

Common equity tier 1 capital ratio

 

 

17.97

 

 

 

16.96

 

 

 

15.99

 

Tier 1 capital ratio

 

 

17.97

 

 

 

16.96

 

 

 

15.99

 

Total capital ratio

 

 

19.22

 

 

 

18.21

 

 

 

17.05

 

 

 

 

 

 

 

 

Share data

 

 

 

 

 

 

Book value per share

 

$

30.32

 

 

$

30.09

 

 

$

29.71

 

Tangible book value per share (1)

 

 

20.58

 

 

 

20.33

 

 

 

19.79

 

Common equity dividends declared per share

 

 

0.33

 

 

 

0.33

 

 

 

0.33

 

Closing stock price (2)

 

 

22.97

 

 

 

24.00

 

 

 

20.68

 

Shares issued and outstanding

 

 

96,434,047

 

 

 

96,459,966

 

 

 

95,906,217

 

Market capitalization (2)(3)

 

$

2,215,090

 

 

$

2,315,039

 

 

$

1,983,341

 

______________________________

(1)

Reconciliations of the non-GAAP measures are set forth at the end of this press release.

(2)

As of the last trading day prior to period end.

(3)

Dollars in thousands.

Dividend and Stock Repurchase Program

On July 22, 2024, the Company's Board of Directors declared a $0.33 per share dividend, payable on August 12, 2024 to stockholders of record as of August 5, 2024. In January 2021, the Company’s Board of Directors approved a stock repurchase program, which authorized the repurchase of up to 4,725,000 shares of its common stock. During the second quarter of 2024, the Company did not repurchase any shares of common stock.

Conference Call and Webcast

The Company will host a conference call at 9:00 a.m. PT / 12:00 p.m. ET on July 24, 2024 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. Participants should ask to be joined to the Pacific Premier Bancorp, Inc. call. Additionally, a telephone replay will be made available through July 31, 2024, at (877) 344-7529, replay code 4208818.

About Pacific Premier Bancorp, Inc.

Pacific Premier Bancorp, Inc. (Nasdaq: PPBI) is the parent company of Pacific Premier Bank, a California-based commercial bank focused on serving small, middle-market, and corporate businesses throughout the western United States in major metropolitan markets in California, Washington, Oregon, Arizona, and Nevada. Founded in 1983, Pacific Premier Bank has grown to become one of the largest banks headquartered in the western region of the United States, with approximately $18 billion in total assets. Pacific Premier Bank provides banking products and services, including deposit accounts, digital banking, and treasury management services, to businesses, professionals, entrepreneurs, real estate investors, and nonprofit organizations. Pacific Premier Bank also offers a wide array of loan products, such as commercial business loans, lines of credit, SBA loans, commercial real estate loans, agribusiness loans, franchise lending, home equity lines of credit, and construction loans. Pacific Premier Bank offers commercial escrow services and facilitates 1031 Exchange transactions through its Commerce Escrow division. Pacific Premier Bank offers clients IRA custodial services through its Pacific Premier Trust division, which has approximately $17 billion of assets under custody and over 32,000 client accounts comprised of self-directed investors, financial institutions, capital syndicators, and financial advisors. Additionally, Pacific Premier Bank provides nationwide customized banking solutions to Homeowners’ Associations and Property Management companies. Pacific Premier Bank is an Equal Housing Lender and Member FDIC. For additional information about Pacific Premier Bancorp, Inc. and Pacific Premier Bank, visit our website: www.ppbi.com.

FORWARD-LOOKING STATEMENTS

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 including, without limitation, plans, strategies and goals, and statements about the Company’s expectations regarding revenue and asset growth, financial performance and profitability, loan and deposit growth, yields and returns, loan diversification and credit management, stockholder value creation, tax rates, liquidity, and the impact of acquisitions we have made or may make.

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 ("U.S.") economy in general and the strength of the local economies in which we conduct operations; adverse developments in the banking industry and the potential impact of such developments on customer confidence, liquidity, and regulatory responses to these developments; 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; interest rate, liquidity, economic, market, credit, operational, and inflation risks associated with our business, including the speed and predictability of changes in these risks; our ability to attract and retain deposits and access to other sources of liquidity, particularly in a rising or high interest rate environment, and the quality and composition of our deposits; business and economic conditions generally and in the financial services industry, nationally and within our current and future geographic markets, including the tight labor market, ineffective management of the U.S. Federal budget or debt, or turbulence or uncertainty in domestic or foreign financial markets; the effect of acquisitions we have made or may make, including, without limitation, the failure to achieve the expected revenue growth and/or expense savings from such acquisitions, and/or the failure to effectively integrate an acquisition target into our operations; the timely development of competitive new products and services and the acceptance of these products and services by new and existing customers; possible impairment charges to goodwill, including any impairment that may result from increased volatility in our stock price; the impact of changes in financial services policies, laws, and regulations, including those concerning taxes, banking, securities, and insurance, and the application thereof by regulatory bodies; compliance risks, including any increased costs of monitoring, testing, and maintaining compliance with complex laws and regulations; the effectiveness of our risk management framework and quantitative models; the effect of changes in accounting policies and practices or accounting standards, as may be adopted from time-to-time by bank regulatory agencies, the U.S. Securities and Exchange Commission (“SEC”), the Public Company Accounting Oversight Board, the Financial Accounting Standards Board or other accounting standards setters; possible credit-related impairments of securities held by us; changes in the level of our nonperforming assets and charge-offs; the impact of governmental efforts to restructure the U.S. financial regulatory system; the impact of recent or future changes in the FDIC insurance assessment rate or the rules and regulations related to the calculation of the FDIC insurance assessment amount, including any special assessments; changes in consumer spending, borrowing, and savings habits; the effects of concentrations in our loan portfolio, including commercial real estate and the risks of geographic and industry concentrations; the possibility that we may reduce or discontinue the payments of dividends on our common stock; the possibility that we may discontinue, reduce or otherwise limit the level of repurchases of our common stock we may make from time to time pursuant to our stock repurchase program; 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; geopolitical conditions, including acts or threats of terrorism, actions taken by the United States or other governments in response to acts or threats of terrorism, and/or military conflicts, including the war between Russia and Ukraine, Israel and Hamas, and overall tension in the Middle East, and trade tensions, all of which could impact business and economic conditions in the United States and abroad; public health crises and pandemics and their effects on the economic and business environments in which we operate, including on our credit quality and business operations, as well as the impact on general economic and financial market conditions; cybersecurity threats and the cost of defending against them; climate change, including the enhanced regulatory, compliance, credit, and reputational risks and costs; natural disasters, earthquakes, fires, and severe weather; unanticipated regulatory or legal proceedings; and our 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 Company's 2023 Annual Report on Form 10-K filed with the SEC and available at the SEC’s Internet site (http://www.sec.gov).

The Company undertakes no obligation to revise or publicly release any revision or update to these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made.

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)

 

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

June 30,

(Dollars in thousands)

 

2024

 

2024

 

2023

 

2023

 

2023

ASSETS

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

899,817

 

 

$

1,028,818

 

 

$

936,473

 

 

$

1,400,276

 

 

$

1,463,677

 

Interest-bearing time deposits with financial institutions

 

 

996

 

 

 

995

 

 

 

995

 

 

 

1,242

 

 

 

1,487

 

Investment securities held-to-maturity, at amortized cost, net of allowance for credit losses

 

 

1,710,141

 

 

 

1,720,481

 

 

 

1,729,541

 

 

 

1,737,866

 

 

 

1,737,604

 

Investment securities available-for-sale, at fair value

 

 

1,320,050

 

 

 

1,154,021

 

 

 

1,140,071

 

 

 

1,914,599

 

 

 

2,011,791

 

FHLB, FRB, and other stock

 

 

97,037

 

 

 

97,063

 

 

 

99,225

 

 

 

105,505

 

 

 

105,369

 

Loans held for sale, at lower of amortized cost or fair value

 

 

140

 

 

 

 

 

 

 

 

 

641

 

 

 

2,184

 

Loans held for investment

 

 

12,489,951

 

 

 

13,012,071

 

 

 

13,289,020

 

 

 

13,270,120

 

 

 

13,610,282

 

Allowance for credit losses

 

 

(183,803

)

 

 

(192,340

)

 

 

(192,471

)

 

 

(188,098

)

 

 

(192,333

)

Loans held for investment, net

 

 

12,306,148

 

 

 

12,819,731

 

 

 

13,096,549

 

 

 

13,082,022

 

 

 

13,417,949

 

Accrued interest receivable

 

 

69,629

 

 

 

67,642

 

 

 

68,516

 

 

 

68,131

 

 

 

70,093

 

Other real estate owned

 

 

 

 

 

248

 

 

 

248

 

 

 

450

 

 

 

270

 

Premises and equipment, net

 

 

52,137

 

 

 

54,789

 

 

 

56,676

 

 

 

59,396

 

 

 

61,527

 

Deferred income taxes, net

 

 

108,607

 

 

 

111,390

 

 

 

113,580

 

 

 

192,208

 

 

 

184,857

 

Bank owned life insurance

 

 

477,694

 

 

 

474,404

 

 

 

471,178

 

 

 

468,191

 

 

 

465,288

 

Intangible assets

 

 

37,686

 

 

 

40,449

 

 

 

43,285

 

 

 

46,307

 

 

 

49,362

 

Goodwill

 

 

901,312

 

 

 

901,312

 

 

 

901,312

 

 

 

901,312

 

 

 

901,312

 

Other assets

 

 

350,931

 

 

 

341,838

 

 

 

368,996

 

 

 

297,574

 

 

 

275,113

 

Total assets

 

$

18,332,325

 

 

$

18,813,181

 

 

$

19,026,645

 

 

$

20,275,720

 

 

$

20,747,883

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

Deposit accounts:

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing checking

 

$

4,616,124

 

 

$

4,997,636

 

 

$

4,932,817

 

 

$

5,782,305

 

 

$

5,895,975

 

Interest-bearing:

 

 

 

 

 

 

 

 

 

 

Checking

 

 

2,776,212

 

 

 

2,785,626

 

 

 

2,899,621

 

 

 

2,598,449

 

 

 

2,759,855

 

Money market/savings

 

 

4,844,585

 

 

 

5,037,636

 

 

 

4,868,442

 

 

 

4,873,582

 

 

 

4,801,288

 

Retail certificates of deposit

 

 

1,906,552

 

 

 

1,794,813

 

 

 

1,684,560

 

 

 

1,525,919

 

 

 

1,366,071

 

Wholesale/brokered certificates of deposit

 

 

484,181

 

 

 

572,117

 

 

 

610,186

 

 

 

1,227,192

 

 

 

1,716,686

 

Total interest-bearing

 

 

10,011,530

 

 

 

10,190,192

 

 

 

10,062,809

 

 

 

10,225,142

 

 

 

10,643,900

 

Total deposits

 

 

14,627,654

 

 

 

15,187,828

 

 

 

14,995,626

 

 

 

16,007,447

 

 

 

16,539,875

 

FHLB advances and other borrowings

 

 

200,000

 

 

 

200,000

 

 

 

600,000

 

 

 

800,000

 

 

 

800,000

 

Subordinated debentures

 

 

332,160

 

 

 

332,001

 

 

 

331,842

 

 

 

331,682

 

 

 

331,523

 

Accrued expenses and other liabilities

 

 

248,747

 

 

 

190,551

 

 

 

216,596

 

 

 

281,057

 

 

 

227,351

 

Total liabilities

 

 

15,408,561

 

 

 

15,910,380

 

 

 

16,144,064

 

 

 

17,420,186

 

 

 

17,898,749

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

941

 

 

 

941

 

 

 

938

 

 

 

937

 

 

 

937

 

Additional paid-in capital

 

 

2,383,615

 

 

 

2,378,171

 

 

 

2,377,131

 

 

 

2,371,941

 

 

 

2,366,639

 

Retained earnings

 

 

629,341

 

 

 

619,405

 

 

 

604,137

 

 

 

771,285

 

 

 

757,025

 

Accumulated other comprehensive loss

 

 

(90,133

)

 

 

(95,716

)

 

 

(99,625

)

 

 

(288,629

)

 

 

(275,467

)

Total stockholders' equity

 

 

2,923,764

 

 

 

2,902,801

 

 

 

2,882,581

 

 

 

2,855,534

 

 

 

2,849,134

 

Total liabilities and stockholders' equity

 

$

18,332,325

 

 

$

18,813,181

 

 

$

19,026,645

 

 

$

20,275,720

 

 

$

20,747,883

 

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

March 31,

 

June 30,

 

June 30,

 

June 30,

(Dollars in thousands, except per share data)

 

2024

 

2024

 

2023

 

2024

 

2023

INTEREST INCOME

 

 

 

 

 

 

 

 

 

 

Loans

 

$

167,547

 

$

172,975

 

$

182,852

 

$

340,522

 

$

363,810

Investment securities and other interest-earning assets

 

 

40,507

 

 

 

40,456

 

 

 

42,536

 

 

 

80,963

 

 

 

82,921

 

Total interest income

 

 

208,054

 

 

 

213,431

 

 

 

225,388

 

 

 

421,485

 

 

 

446,731

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

64,229

 

 

 

59,506

 

 

 

53,580

 

 

 

123,735

 

 

 

93,814

 

FHLB advances and other borrowings

 

 

2,330

 

 

 

4,237

 

 

 

7,155

 

 

 

6,567

 

 

 

15,093

 

Subordinated debentures

 

 

5,101

 

 

 

4,561

 

 

 

4,561

 

 

 

9,662

 

 

 

9,122

 

Total interest expense

 

 

71,660

 

 

 

68,304

 

 

 

65,296

 

 

 

139,964

 

 

 

118,029

 

Net interest income before provision for credit losses

 

 

136,394

 

 

 

145,127

 

 

 

160,092

 

 

 

281,521

 

 

 

328,702

 

Provision for credit losses

 

 

1,265

 

 

 

3,852

 

 

 

1,499

 

 

 

5,117

 

 

 

4,515

 

Net interest income after provision for credit losses

 

 

135,129

 

 

 

141,275

 

 

 

158,593

 

 

 

276,404

 

 

 

324,187

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

Loan servicing income

 

 

510

 

 

 

529

 

 

 

493

 

 

 

1,039

 

 

 

1,066

 

Service charges on deposit accounts

 

 

2,710

 

 

 

2,688

 

 

 

2,670

 

 

 

5,398

 

 

 

5,299

 

Other service fee income

 

 

309

 

 

 

336

 

 

 

315

 

 

 

645

 

 

 

611

 

Debit card interchange fee income

 

 

925

 

 

 

765

 

 

 

914

 

 

 

1,690

 

 

 

1,717

 

Earnings on bank owned life insurance

 

 

4,218

 

 

 

4,159

 

 

 

3,487

 

 

 

8,377

 

 

 

6,861

 

Net gain from sales of loans

 

 

65

 

 

 

 

 

 

345

 

 

 

65

 

 

 

374

 

Net gain from sales of investment securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

138

 

Trust custodial account fees

 

 

8,950

 

 

 

10,642

 

 

 

9,360

 

 

 

19,592

 

 

 

20,385

 

Escrow and exchange fees

 

 

702

 

 

 

696

 

 

 

924

 

 

 

1,398

 

 

 

1,982

 

Other (loss) income

 

 

(167

)

 

 

5,959

 

 

 

2,031

 

 

 

5,792

 

 

 

3,292

 

Total noninterest income

 

 

18,222

 

 

 

25,774

 

 

 

20,539

 

 

 

43,996

 

 

 

41,725

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

53,140

 

 

 

54,130

 

 

 

53,424

 

 

 

107,270

 

 

 

107,717

 

Premises and occupancy

 

 

10,480

 

 

 

10,807

 

 

 

11,615

 

 

 

21,287

 

 

 

23,357

 

Data processing

 

 

7,754

 

 

 

7,511

 

 

 

7,488

 

 

 

15,265

 

 

 

14,753

 

Other real estate owned operations, net

 

 

 

 

 

46

 

 

 

8

 

 

 

46

 

 

 

116

 

FDIC insurance premiums

 

 

1,873

 

 

 

2,629

 

 

 

2,357

 

 

 

4,502

 

 

 

4,782

 

Legal and professional services

 

 

1,078

 

 

 

4,143

 

 

 

4,716

 

 

 

5,221

 

 

 

10,217

 

Marketing expense

 

 

1,724

 

 

 

1,558

 

 

 

1,879

 

 

 

3,282

 

 

 

3,717

 

Office expense

 

 

1,077

 

 

 

1,093

 

 

 

1,280

 

 

 

2,170

 

 

 

2,512

 

Loan expense

 

 

840

 

 

 

770

 

 

 

567

 

 

 

1,610

 

 

 

1,213

 

Deposit expense

 

 

12,289

 

 

 

12,665

 

 

 

9,194

 

 

 

24,954

 

 

 

17,630

 

Amortization of intangible assets

 

 

2,763

 

 

 

2,836

 

 

 

3,055

 

 

 

5,599

 

 

 

6,226

 

Other expense

 

 

4,549

 

 

 

4,445

 

 

 

5,061

 

 

 

8,994

 

 

 

9,756

 

Total noninterest expense

 

 

97,567

 

 

 

102,633

 

 

 

100,644

 

 

 

200,200

 

 

 

201,996

 

Net income before income taxes

 

 

55,784

 

 

 

64,416

 

 

 

78,488

 

 

 

120,200

 

 

 

163,916

 

Income tax expense

 

 

13,879

 

 

 

17,391

 

 

 

20,852

 

 

 

31,270

 

 

 

43,718

 

Net income

 

$

41,905

 

 

$

47,025

 

 

$

57,636

 

 

$

88,930

 

 

$

120,198

 

EARNINGS (LOSS) PER SHARE

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.43

 

 

$

0.49

 

 

$

0.60

 

 

$

0.92

 

 

$

1.26

 

Diluted

 

$

0.43

 

 

$

0.49

 

 

$

0.60

 

 

$

0.92

 

 

$

1.26

 

WEIGHTED AVERAGE SHARES OUTSTANDING

 

 

 

 

 

 

 

 

 

 

Basic

 

 

94,628,201

 

 

 

94,350,259

 

 

 

94,166,083

 

 

 

94,489,230

 

 

 

94,012,799

 

Diluted

 

 

94,716,205

 

 

 

94,477,355

 

 

 

94,215,967

 

 

 

94,597,559

 

 

 

94,192,341

 

SELECTED FINANCIAL DATA

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED AVERAGE BALANCES AND YIELD DATA

(Unaudited)

 

 

 

 

 

Three Months Ended

 

 

June 30, 2024

 

March 31, 2024

 

June 30, 2023

(Dollars in thousands)

 

Average

Balance

 

Interest

Income/

Expense

 

Average

Yield/

Cost

 

Average

Balance

 

Interest

Income/

Expense

 

Average

Yield/

Cost

 

Average

Balance

 

Interest

Income/

Expense

 

Average

Yield/

Cost

Assets

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,134,736

 

$

13,666

 

4.84

%

 

$

1,140,909

 

$

13,638

 

4.81

%

 

$

1,433,137

 

$

16,600

 

4.65

%

Investment securities

 

 

2,964,909

 

 

 

26,841

 

 

3.62

 

 

 

2,948,170

 

 

 

26,818

 

 

3.64

 

 

 

3,926,568

 

 

 

25,936

 

 

2.64

 

Loans receivable, net (1)(2)

 

 

12,724,545

 

 

 

167,547

 

 

5.30

 

 

 

13,149,038

 

 

 

172,975

 

 

5.29

 

 

 

13,927,145

 

 

 

182,852

 

 

5.27

 

Total interest-earning assets

 

 

16,824,190

 

 

 

208,054

 

 

4.97

 

 

 

17,238,117

 

 

 

213,431

 

 

4.98

 

 

 

19,286,850

 

 

 

225,388

 

 

4.69

 

Noninterest-earning assets

 

 

1,771,493

 

 

 

 

 

 

 

1,796,279

 

 

 

 

 

 

 

1,771,156

 

 

 

 

 

Total assets

 

$

18,595,683

 

 

 

 

 

 

$

19,034,396

 

 

 

 

 

 

$

21,058,006

 

 

 

 

 

Liabilities and equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest checking

 

$

2,747,972

 

 

$

10,177

 

 

1.49

%

 

$

2,838,332

 

 

$

9,903

 

 

1.40

%

 

$

2,746,578

 

 

$

8,659

 

 

1.26

%

Money market

 

 

4,724,572

 

 

 

26,207

 

 

2.23

 

 

 

4,636,141

 

 

 

23,632

 

 

2.05

 

 

 

4,644,623

 

 

 

15,644

 

 

1.35

 

Savings

 

 

271,812

 

 

 

224

 

 

0.33

 

 

 

287,735

 

 

 

227

 

 

0.32

 

 

 

352,377

 

 

 

102

 

 

0.12

 

Retail certificates of deposit

 

 

1,830,516

 

 

 

21,115

 

 

4.64

 

 

 

1,727,728

 

 

 

19,075

 

 

4.44

 

 

 

1,286,160

 

 

 

10,306

 

 

3.21

 

Wholesale/brokered certificates of deposit

 

 

542,699

 

 

 

6,506

 

 

4.82

 

 

 

568,872

 

 

 

6,669

 

 

4.72

 

 

 

1,767,970

 

 

 

18,869

 

 

4.28

 

Total interest-bearing deposits

 

 

10,117,571

 

 

 

64,229

 

 

2.55

 

 

 

10,058,808

 

 

 

59,506

 

 

2.38

 

 

 

10,797,708

 

 

 

53,580

 

 

1.99

 

FHLB advances and other borrowings

 

 

200,154

 

 

 

2,330

 

 

4.68

 

 

 

518,879

 

 

 

4,237

 

 

3.28

 

 

 

800,016

 

 

 

7,155

 

 

3.59

 

Subordinated debentures

 

 

332,097

 

 

 

5,101

 

 

6.14

 

 

 

331,932

 

 

 

4,561

 

 

5.50

 

 

 

331,449

 

 

 

4,561

 

 

5.50

 

Total borrowings

 

 

532,251

 

 

 

7,431

 

 

5.59

 

 

 

850,811

 

 

 

8,798

 

 

4.15

 

 

 

1,131,465

 

 

 

11,716

 

 

4.15

 

Total interest-bearing liabilities

 

 

10,649,822

 

 

 

71,660

 

 

2.71

 

 

 

10,909,619

 

 

 

68,304

 

 

2.52

 

 

 

11,929,173

 

 

 

65,296

 

 

2.20

 

Noninterest-bearing deposits

 

 

4,824,002

 

 

 

 

 

 

 

4,996,939

 

 

 

 

 

 

 

6,078,543

 

 

 

 

 

Other liabilities

 

 

213,844

 

 

 

 

 

 

 

231,889

 

 

 

 

 

 

 

206,929

 

 

 

 

 

Total liabilities

 

 

15,687,668

 

 

 

 

 

 

 

16,138,447

 

 

 

 

 

 

 

18,214,645

 

 

 

 

 

Stockholders' equity

 

 

2,908,015

 

 

 

 

 

 

 

2,895,949

 

 

 

 

 

 

 

2,843,361

 

 

 

 

 

Total liabilities and equity

 

$

18,595,683

 

 

 

 

 

 

$

19,034,396

 

 

 

 

 

 

$

21,058,006

 

 

 

 

 

Net interest income

 

 

 

$

136,394

 

 

 

 

 

 

$

145,127

 

 

 

 

 

 

$

160,092

 

 

 

Net interest margin (3)

 

 

 

 

 

3.26

%

 

 

 

 

 

3.39

%

 

 

 

 

 

3.33

%

Cost of deposits (4)

 

 

 

 

 

1.73

 

 

 

 

 

 

1.59

 

 

 

 

 

 

1.27

 

Cost of funds (5)

 

 

 

 

 

1.86

 

 

 

 

 

 

1.73

 

 

 

 

 

 

1.45

 

Cost of non-maturity deposits (6)

 

 

 

 

 

1.17

 

 

 

 

 

 

1.06

 

 

 

 

 

 

0.71

 

Ratio of interest-earning assets to interest-bearing liabilities

 

157.98

 

 

 

 

 

 

158.01

 

 

 

 

 

 

161.68

 

______________________________

(1)

Average balance includes loans held for sale and nonperforming loans and is net of deferred loan origination fees/costs, discounts/premiums, and the basis adjustment of certain loans included in fair value hedging relationships.

(2)

Interest income includes net discount accretion of $2.3 million, $2.1 million, and $2.9 million for the three months ended June 30, 2024, March 31, 2024, and June 30, 2023, respectively.

(3)

Represents annualized net interest income divided by average interest-earning assets.

(4)

Represents annualized interest expense on deposits divided by the sum of average interest-bearing deposits and noninterest-bearing deposits.

(5)

Represents annualized total interest expense divided by the sum of average total interest-bearing liabilities and noninterest-bearing deposits.

(6)

Reconciliations of the non-GAAP measures are set forth at the end of this press release.

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES

LOAN PORTFOLIO COMPOSITION

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

June 30,

(Dollars in thousands)

 

2024

 

2024

 

2023

 

2023

 

2023

Investor loans secured by real estate

 

 

 

 

 

 

 

 

 

 

CRE non-owner-occupied

 

$

2,245,474

 

 

$

2,309,252

 

 

$

2,421,772

 

 

$

2,514,056

 

 

$

2,571,246

 

Multifamily

 

 

5,473,606

 

 

 

5,558,966

 

 

 

5,645,310

 

 

 

5,719,210

 

 

 

5,788,030

 

Construction and land

 

 

453,799

 

 

 

486,734

 

 

 

472,544

 

 

 

444,576

 

 

 

428,287

 

SBA secured by real estate (1)

 

 

33,245

 

 

 

35,206

 

 

 

36,400

 

 

 

37,754

 

 

 

38,876

 

Total investor loans secured by real estate

 

 

8,206,124

 

 

 

8,390,158

 

 

 

8,576,026

 

 

 

8,715,596

 

 

 

8,826,439

 

Business loans secured by real estate (2)

 

 

 

 

 

 

 

 

 

 

CRE owner-occupied

 

 

2,096,485

 

 

 

2,149,362

 

 

 

2,191,334

 

 

 

2,228,802

 

 

 

2,281,721

 

Franchise real estate secured

 

 

274,645

 

 

 

294,938

 

 

 

304,514

 

 

 

313,451

 

 

 

318,539

 

SBA secured by real estate (3)

 

 

46,543

 

 

 

48,426

 

 

 

50,741

 

 

 

53,668

 

 

 

57,084

 

Total business loans secured by real estate

 

 

2,417,673

 

 

 

2,492,726

 

 

 

2,546,589

 

 

 

2,595,921

 

 

 

2,657,344

 

Commercial loans (4)

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

1,554,735

 

 

 

1,774,487

 

 

 

1,790,608

 

 

 

1,588,771

 

 

 

1,744,763

 

Franchise non-real estate secured

 

 

257,516

 

 

 

301,895

 

 

 

319,721

 

 

 

335,053

 

 

 

351,944

 

SBA non-real estate secured

 

 

10,346

 

 

 

10,946

 

 

 

10,926

 

 

 

10,667

 

 

 

9,688

 

Total commercial loans

 

 

1,822,597

 

 

 

2,087,328

 

 

 

2,121,255

 

 

 

1,934,491

 

 

 

2,106,395

 

Retail loans

 

 

 

 

 

 

 

 

 

 

Single family residential (5)

 

 

70,380

 

 

 

72,353

 

 

 

72,752

 

 

 

70,984

 

 

 

70,993

 

Consumer

 

 

1,378

 

 

 

1,830

 

 

 

1,949

 

 

 

1,958

 

 

 

2,241

 

Total retail loans

 

 

71,758

 

 

 

74,183

 

 

 

74,701

 

 

 

72,942

 

 

 

73,234

 

Loans held for investment before basis adjustment (6)

 

 

12,518,152

 

 

 

13,044,395

 

 

 

13,318,571

 

 

 

13,318,950

 

 

 

13,663,412

 

Basis adjustment associated with fair value hedge (7)

 

 

(28,201

)

 

 

(32,324

)

 

 

(29,551

)

 

 

(48,830

)

 

 

(53,130

)

Loans held for investment

 

 

12,489,951

 

 

 

13,012,071

 

 

 

13,289,020

 

 

 

13,270,120

 

 

 

13,610,282

 

Allowance for credit losses for loans held for investment

 

 

(183,803

)

 

 

(192,340

)

 

 

(192,471

)

 

 

(188,098

)

 

 

(192,333

)

Loans held for investment, net

 

$

12,306,148

 

 

$

12,819,731

 

 

$

13,096,549

 

 

$

13,082,022

 

 

$

13,417,949

 

 

 

 

 

 

 

 

 

 

 

 

Loans held for sale, at lower of cost or fair value

 

$

140

 

 

$

 

 

$

 

 

$

641

 

 

$

2,184

 

______________________________

(1)

SBA loans that are collateralized by hotel/motel real property.

(2)

Loans to businesses that are collateralized by real estate where the operating cash flow of the business is the primary source of repayment.

(3)

SBA loans that are collateralized by real property other than hotel/motel real property.

(4)

Loans to businesses where the operating cash flow of the business is the primary source of repayment.

(5)

Single family residential includes home equity lines of credit, as well as second trust deeds.

(6)

Includes net deferred origination costs (fees) of $1.4 million, $797,000, $(74,000), $451,000, and $142,000, and unaccreted fair value net purchase discounts of $38.6 million, $41.2 million, $43.3 million, $46.2 million, and $48.4 million as of June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023, and June 30, 2023, respectively.

(7)

Represents the basis adjustment associated with the application of hedge accounting on certain loans.

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES

ASSET QUALITY INFORMATION

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

June 30,

(Dollars in thousands)

 

2024

 

2024

 

2023

 

2023

 

2023

Asset quality

 

 

 

 

 

 

 

 

 

 

Nonperforming loans

 

$

52,119

 

 

$

63,806

 

 

$

24,817

 

 

$

25,458

 

 

$

17,151

 

Other real estate owned

 

 

 

 

 

248

 

 

 

248

 

 

 

450

 

 

 

270

 

Nonperforming assets

 

$

52,119

 

 

$

64,054

 

 

$

25,065

 

 

$

25,908

 

 

$

17,421

 

 

 

 

 

 

 

 

 

 

 

 

Total classified assets (1)

 

$

183,833

 

 

$

204,937

 

 

$

142,210

 

 

$

149,708

 

 

$

120,216

 

Allowance for credit losses

 

 

183,803

 

 

 

192,340

 

 

 

192,471

 

 

 

188,098

 

 

 

192,333

 

Allowance for credit losses as a percent of total nonperforming loans

 

 

353

%

 

 

301

%

 

 

776

%

 

 

739

%

 

 

1,121

%

Nonperforming loans as a percent of loans held for investment

 

 

0.42

 

 

 

0.49

 

 

 

0.19

 

 

 

0.19

 

 

 

0.13

 

Nonperforming assets as a percent of total assets

 

 

0.28

 

 

 

0.34

 

 

 

0.13

 

 

 

0.13

 

 

 

0.08

 

Classified loans to total loans held for investment

 

 

1.47

 

 

 

1.57

 

 

 

1.07

 

 

 

1.12

 

 

 

0.88

 

Classified assets to total assets

 

 

1.00

 

 

 

1.09

 

 

 

0.75

 

 

 

0.74

 

 

 

0.58

 

Net loan charge-offs for the quarter ended

 

$

10,293

 

 

$

6,419

 

 

$

3,902

 

 

$

6,752

 

 

$

3,665

 

Net loan charge-offs for the quarter to average total loans

 

 

0.08

%

 

 

0.05

%

 

 

0.03

%

 

 

0.05

%

 

 

0.03

%

Allowance for credit losses to loans held for investment (2)

 

 

1.47

 

 

 

1.48

 

 

 

1.45

 

 

 

1.42

 

 

 

1.41

 

Delinquent loans (3)

 

 

 

 

 

 

 

 

 

 

30 - 59 days

 

$

4,985

 

 

$

1,983

 

 

$

2,484

 

 

$

2,967

 

 

$

649

 

60 - 89 days

 

 

3,289

 

 

 

974

 

 

 

1,294

 

 

 

475

 

 

 

31

 

90+ days

 

 

9,649

 

 

 

9,221

 

 

 

6,276

 

 

 

7,484

 

 

 

30,271

 

Total delinquency

 

$

17,923

 

 

$

12,178

 

 

$

10,054

 

 

$

10,926

 

 

$

30,951

 

Delinquency as a percent of loans held for investment

 

 

0.14

%

 

 

0.09

%

 

 

0.08

%

 

 

0.08

%

 

 

0.23

%

______________________________

(1)

Includes substandard and doubtful loans, and other real estate owned.

(2)

At June 30, 2024, 25% of loans held for investment include a fair value net discount of $38.6 million, or 0.31% of loans held for investment. At March 31, 2024, 25% of loans held for investment include a fair value net discount of $41.2 million, or 0.32% of loans held for investment. At December 31, 2023, 24% of loans held for investment include a fair value net discount of $43.3 million, or 0.33% of loans held for investment. At September 30, 2023, 24% of loans held for investment include a fair value net discount of $46.2 million, or 0.35% of loans held for investment. At June 30, 2023, 25% of loans held for investment include a fair value net discount of $48.4 million, or 0.35% of loans held for investment.

(3)

Nonaccrual loans are included in this aging analysis based on the loan's past due status.

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES

NONACCRUAL LOANS (1)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Collateral

Dependent

Loans

 

ACL

 

Non-

Collateral

Dependent

Loans

 

ACL

 

Total

Nonaccrual

Loans

 

Nonaccrual

Loans With

No ACL

June 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Investor loans secured by real estate

 

 

 

 

 

 

 

 

 

 

 

 

CRE non-owner-occupied

 

$

19,381

 

$

 

$

 

$

 

$

19,381

 

$

19,381

SBA secured by real estate (2)

 

 

934

 

 

 

 

 

 

 

 

 

 

 

 

934

 

 

 

934

 

Total investor loans secured by real estate

 

 

20,315

 

 

 

 

 

 

 

 

 

 

 

 

20,315

 

 

 

20,315

 

Business loans secured by real estate (3)

 

 

 

 

 

 

 

 

 

 

 

 

CRE owner-occupied

 

 

8,439

 

 

 

 

 

 

 

 

 

 

 

 

8,439

 

 

 

8,439

 

Franchise real estate secured

 

 

 

 

 

 

 

 

292

 

 

 

37

 

 

 

292

 

 

 

 

Total business loans secured by real estate

 

 

8,439

 

 

 

 

 

 

292

 

 

 

37

 

 

 

8,731

 

 

 

8,439

 

Commercial loans (4)

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

9,252

 

 

 

 

 

 

11,727

 

 

 

 

 

 

20,979

 

 

 

20,979

 

Franchise non-real estate secured

 

 

 

 

 

 

 

 

1,559

 

 

 

200

 

 

 

1,559

 

 

 

 

SBA not secured by real estate

 

 

535

 

 

 

 

 

 

 

 

 

 

 

 

535

 

 

 

535

 

Total commercial loans

 

 

9,787

 

 

 

 

 

 

13,286

 

 

 

200

 

 

 

23,073

 

 

 

21,514

 

Totals nonaccrual loans

 

$

38,541

 

 

$

 

 

$

13,578

 

 

$

237

 

 

$

52,119

 

 

$

50,268

 

______________________________

(1)

The ACL for nonaccrual loans is determined based on a discounted cash flow methodology unless the loan is considered collateral dependent. The ACL for collateral dependent loans is determined based on the estimated fair value of the underlying collateral.

(2)

SBA loans that are collateralized by hotel/motel real property.

(3)

Loans to businesses that are collateralized by real estate where the operating cash flow of the business is the primary source of repayment.

(4)

Loans to businesses where the operating cash flow of the business is the primary source of repayment.

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES

PAST DUE STATUS

(Unaudited)

 

 

 

 

 

Days Past Due (7)

 

 

(Dollars in thousands)

 

Current

 

30-59

 

60-89

 

90+

 

Total

June 30, 2024

 

 

 

 

 

 

 

 

 

 

Investor loans secured by real estate

 

 

 

 

 

 

 

 

 

 

CRE non-owner-occupied

 

$

2,244,424

 

$

 

$

 

$

1,050

 

$

2,245,474

Multifamily

 

 

5,473,606

 

 

 

 

 

 

 

 

 

 

 

 

5,473,606

 

Construction and land

 

 

453,799

 

 

 

 

 

 

 

 

 

 

 

 

453,799

 

SBA secured by real estate (1)

 

 

32,748

 

 

 

 

 

 

 

 

 

497

 

 

 

33,245

 

Total investor loans secured by real estate

 

 

8,204,577

 

 

 

 

 

 

 

 

 

1,547

 

 

 

8,206,124

 

Business loans secured by real estate (2)

 

 

 

 

 

 

 

 

 

 

CRE owner-occupied

 

 

2,088,046

 

 

 

3,852

 

 

 

 

 

 

4,587

 

 

 

2,096,485

 

Franchise real estate secured

 

 

274,353

 

 

 

 

 

 

 

 

 

292

 

 

 

274,645

 

SBA secured by real estate (3)

 

 

46,543

 

 

 

 

 

 

 

 

 

 

 

 

46,543

 

Total business loans secured by real estate

 

 

2,408,942

 

 

 

3,852

 

 

 

 

 

 

4,879

 

 

 

2,417,673

 

Commercial loans (4)

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

1,552,024

 

 

 

1,133

 

 

 

449

 

 

 

1,129

 

 

 

1,554,735

 

Franchise non-real estate secured

 

 

253,117

 

 

 

 

 

 

2,840

 

 

 

1,559

 

 

 

257,516

 

SBA not secured by real estate

 

 

9,811

 

 

 

 

 

 

 

 

 

535

 

 

 

10,346

 

Total commercial loans

 

 

1,814,952

 

 

 

1,133

 

 

 

3,289

 

 

 

3,223

 

 

 

1,822,597

 

Retail loans

 

 

 

 

 

 

 

 

 

 

Single family residential (5)

 

 

70,380

 

 

 

 

 

 

 

 

 

 

 

 

70,380

 

Consumer loans

 

 

1,378

 

 

 

 

 

 

 

 

 

 

 

 

1,378

 

Total retail loans

 

 

71,758

 

 

 

 

 

 

 

 

 

 

 

 

71,758

 

Loans held for investment before basis adjustment (6)

 

$

12,500,229

 

 

$

4,985

 

 

$

3,289

 

 

$

9,649

 

 

$

12,518,152

 

______________________________

(1)

SBA loans that are collateralized by hotel/motel real property.

(2)

Loans to businesses that are collateralized by real estate where the operating cash flow of the business is the primary source of repayment.

(3)

SBA loans that are collateralized by real property other than hotel/motel real property.

(4)

Loans to businesses where the operating cash flow of the business is the primary source of repayment.

(5)

Single family residential includes home equity lines of credit, as well as second trust deeds.

(6)

Excludes the basis adjustment of $28.2 million to the carrying amount of certain loans included in fair value hedging relationships.

(7)

Nonaccrual loans are included in this aging analysis based on the loan's past due status.

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES

CREDIT RISK GRADES

(Unaudited)

 

(Dollars in thousands)

 

Pass

 

Special

Mention

 

Substandard

 

Doubtful

 

Total Gross

Loans

June 30, 2024

 

 

 

 

 

 

 

 

 

 

Investor loans secured by real estate

 

 

 

 

 

 

 

 

 

 

CRE non-owner-occupied

 

$

2,204,871

 

$

3,585

 

$

37,018

 

$

 

$

2,245,474

Multifamily

 

 

5,455,303

 

 

 

18,303

 

 

 

 

 

 

 

 

 

5,473,606

 

Construction and land

 

 

453,375

 

 

 

424

 

 

 

 

 

 

 

 

 

453,799

 

SBA secured by real estate (1)

 

 

25,026

 

 

 

1,130

 

 

 

7,089

 

 

 

 

 

 

33,245

 

Total investor loans secured by real estate

 

 

8,138,575

 

 

 

23,442

 

 

 

44,107

 

 

 

 

 

 

8,206,124

 

Business loans secured by real estate (2)

 

 

 

 

 

 

 

 

 

 

CRE owner-occupied

 

 

2,014,813

 

 

 

32,938

 

 

 

48,734

 

 

 

 

 

 

2,096,485

 

Franchise real estate secured

 

 

271,264

 

 

 

1,579

 

 

 

1,802

 

 

 

 

 

 

274,645

 

SBA secured by real estate (3)

 

 

42,673

 

 

 

82

 

 

 

3,788

 

 

 

 

 

 

46,543

 

Total business loans secured by real estate

 

 

2,328,750

 

 

 

34,599

 

 

 

54,324

 

 

 

 

 

 

2,417,673

 

Commercial loans (4)

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

1,456,169

 

 

 

29,183

 

 

 

65,708

 

 

 

3,675

 

 

 

1,554,735

 

Franchise non-real estate secured

 

 

241,664

 

 

 

602

 

 

 

15,250

 

 

 

 

 

 

257,516

 

SBA not secured by real estate

 

 

9,577

 

 

 

 

 

 

769

 

 

 

 

 

 

10,346

 

Total commercial loans

 

 

1,707,410

 

 

 

29,785

 

 

 

81,727

 

 

 

3,675

 

 

 

1,822,597

 

Retail loans

 

 

 

 

 

 

 

 

 

 

Single family residential (5)

 

 

70,380

 

 

 

 

 

 

 

 

 

 

 

 

70,380

 

Consumer loans

 

 

1,378

 

 

 

 

 

 

 

 

 

 

 

 

1,378

 

Total retail loans

 

 

71,758

 

 

 

 

 

 

 

 

 

 

 

 

71,758

 

Loans held for investment before basis adjustment (6)

 

$

12,246,493

 

 

$

87,826

 

 

$

180,158

 

 

$

3,675

 

 

$

12,518,152

 

______________________________

(1)

SBA loans that are collateralized by hotel/motel real property.

(2)

Loans to businesses that are collateralized by real estate where the operating cash flow of the business is the primary source of repayment.

(3)

SBA loans that are collateralized by real property other than hotel/motel real property.

(4)

Loans to businesses where the operating cash flow of the business is the primary source of repayment.

(5)

Single family residential includes home equity lines of credit, as well as second trust deeds.

(6)

Excludes the basis adjustment of $28.2 million to the carrying amount of certain loans included in fair value hedging relationships.

GAAP TO NON-GAAP RECONCILIATIONS

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES

(Unaudited)

 

The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance. However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these adjusted measures, this presentation may not be comparable to other similarly titled adjusted measures reported by other companies.

 

For periods presented below, return on average assets excluding the FDIC special assessment is a non-GAAP financial measure derived from GAAP based amounts. We calculate this figure by excluding the FDIC special assessment and the related tax impact from net income. Management believes that the exclusion of such nonrecurring items from this financial measure provides useful information to gain an understanding of the operating results of our core business and a better comparison of financial performance.

 

 

 

Three Months Ended

 

 

June 30,

 

March 31,

 

June 30,

(Dollars in thousands)

 

2024

 

2024

 

2023

Net income

 

$

41,905

 

 

$

47,025

 

 

$

57,636

 

Add: FDIC special assessment

 

 

(161

)

 

 

523

 

 

 

 

Less: tax adjustment (1)

 

 

(45

)

 

 

148

 

 

 

 

Adjusted net income for average assets

 

$

41,789

 

 

$

47,400

 

 

$

57,636

 

 

 

 

 

 

 

 

Average assets

 

$

18,595,683

 

 

$

19,034,396

 

 

$

21,058,006

 

 

 

 

 

 

 

 

ROAA (annualized)

 

 

0.90

%

 

 

0.99

%

 

 

1.09

%

Adjusted ROAA (annualized)

 

 

0.90

%

 

 

1.00

%

 

 

1.09

%

______________________________

(1)

Adjusted by statutory tax rate

For periods presented below, return on average tangible common equity is a non-GAAP financial measure derived from GAAP-based amounts. We calculate this figure by excluding amortization of intangible assets expense from net income and excluding the average intangible assets and average goodwill from the average stockholders' equity during the periods indicated. Management believes that the exclusion of such items from this financial measure provides useful information to gain an understanding of the operating results of our core business. The adjusted net income, adjusted return on average equity, and adjusted return on average tangible common equity further exclude the nonrecurring items to provide a better comparison to the financial results of prior periods.

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

June 30,

 

March 31,

 

June 30,

(Dollars in thousands)

 

2024

 

2024

 

2023

Net income

 

$

41,905

 

 

$

47,025

 

 

$

57,636

 

Plus: amortization of intangible assets expense

 

 

2,763

 

 

 

2,836

 

 

 

3,055

 

Less: tax adjustment (1)

 

 

781

 

 

 

801

 

 

 

868

 

Net income for average tangible common equity

 

$

43,887

 

 

$

49,060

 

 

$

59,823

 

Add: FDIC special assessment

 

 

(161

)

 

 

523

 

 

 

 

Less: tax adjustment (1)

 

 

(45

)

 

 

148

 

 

 

 

Adjusted net income for average tangible common equity

 

$

43,771

 

 

$

49,435

 

 

$

59,823

 

 

 

 

 

 

 

 

Average stockholders' equity

 

$

2,908,015

 

 

$

2,895,949

 

 

$

2,843,361

 

Less: average intangible assets

 

 

39,338

 

 

 

42,134

 

 

 

51,180

 

Less: average goodwill

 

 

901,312

 

 

 

901,312

 

 

 

901,312

 

Adjusted average tangible common equity

 

$

1,967,365

 

 

$

1,952,503

 

 

$

1,890,869

 

 

 

 

 

 

 

 

ROAE (annualized)

 

 

5.76

%

 

 

6.50

%

 

 

8.11

%

Adjusted ROAE (annualized)

 

 

5.75

%

 

 

6.55

%

 

 

8.11

%

ROATCE (annualized)

 

 

8.92

%

 

 

10.05

%

 

 

12.66

%

Adjusted ROATCE (annualized)

 

 

8.90

%

 

 

10.13

%

 

 

12.66

%

_____________________________________

(1)

Adjusted by statutory tax rate.

Pre-provision net revenue is a non-GAAP financial measure derived from GAAP-based amounts. We calculate the pre-provision net revenue by excluding income tax and provision for credit losses from net income. The adjusted pre-provision net income further excludes the FDIC special assessment to provide a better comparison of financial performance. Management believes that the exclusion of such items from this financial measure provides useful information to gain an understanding of the operating results of our core business and a better comparison to the financial results of prior periods.

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

June 30,

 

March 31,

 

June 30,

(Dollars in thousands)

 

2024

 

2024

 

2023

Interest income

 

$

208,054

 

 

$

213,431

 

 

$

225,388

 

Interest expense

 

 

71,660

 

 

 

68,304

 

 

 

65,296

 

Net interest income

 

 

136,394

 

 

 

145,127

 

 

 

160,092

 

Noninterest income

 

 

18,222

 

 

 

25,774

 

 

 

20,539

 

Revenue

 

 

154,616

 

 

 

170,901

 

 

 

180,631

 

Noninterest expense

 

 

97,567

 

 

 

102,633

 

 

 

100,644

 

Pre-provision net revenue

 

 

57,049

 

 

 

68,268

 

 

 

79,987

 

Add: FDIC special assessment

 

 

(161

)

 

 

523

 

 

 

 

Adjusted pre-provision net revenue

 

$

56,888

 

 

$

68,791

 

 

$

79,987

 

 

 

 

 

 

 

 

Pre-provision net revenue (annualized)

 

$

228,196

 

 

$

273,072

 

 

$

319,948

 

Adjusted pre-provision net revenue (annualized)

 

$

227,552

 

 

$

275,164

 

 

$

319,948

 

 

 

 

 

 

 

 

Average assets

 

$

18,595,683

 

 

$

19,034,396

 

 

$

21,058,006

 

 

 

 

 

 

 

 

Pre-provision net revenue to average assets

 

 

0.31

%

 

 

0.36

%

 

 

0.38

%

Pre-provision net revenue to average assets (annualized)

 

 

1.23

%

 

 

1.43

%

 

 

1.52

%

Adjusted pre-provision net revenue on average assets

 

 

0.31

%

 

 

0.36

%

 

 

0.38

%

Adjusted pre-provision net revenue on average assets (annualized)

 

 

1.22

%

 

 

1.45

%

 

 

1.52

%

Efficiency ratio is a non-GAAP financial measure derived from GAAP-based amounts. This figure represents the ratio of noninterest expense, less amortization of intangible assets and other real estate owned operations, where applicable, to the sum of net interest income before provision for credit losses and total noninterest income less (loss) gain from other real estate owned and gain from debt extinguishment. The adjusted efficiency ratio further excludes the FDIC special assessment to provide a better comparison to the financial results of prior periods. Management believes that the exclusion of such items from this financial measure provides useful information to gain an understanding of the operating results of our core business.

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

June 30,

 

March 31,

 

June 30,

(Dollars in thousands)

 

2024

 

2024

 

2023

Total noninterest expense

 

$

97,567

 

 

$

102,633

 

 

$

100,644

 

Less: amortization of intangible assets

 

 

2,763

 

 

 

2,836

 

 

 

3,055

 

Less: other real estate owned operations, net

 

 

 

 

 

46

 

 

 

8

 

Adjusted noninterest expense

 

 

94,804

 

 

 

99,751

 

 

 

97,581

 

Less: FDIC special assessment

 

 

(161

)

 

 

523

 

 

 

 

Adjusted noninterest expense excluding FDIC special assessment

 

$

94,965

 

 

$

99,228

 

 

$

97,581

 

 

 

 

 

 

 

 

Net interest income before provision for credit losses

 

$

136,394

 

 

$

145,127

 

 

$

160,092

 

Add: total noninterest income

 

 

18,222

 

 

 

25,774

 

 

 

20,539

 

Less: net (loss) gain from other real estate owned

 

 

(28

)

 

 

 

 

 

106

 

Less: net gain from debt extinguishment

 

 

 

 

 

5,067

 

 

 

 

Adjusted revenue

 

$

154,644

 

 

$

165,834

 

 

$

180,525

 

 

 

 

 

 

 

 

Efficiency ratio

 

 

61.3

%

 

 

60.2

%

 

 

54.1

%

Adjusted efficiency ratio excluding FDIC special assessment

 

 

61.4

%

 

 

59.8

%

 

 

54.1

%

Tangible book value per share and tangible common equity to tangible assets (the “tangible common equity ratio”) are non-GAAP financial measures derived from GAAP-based amounts. We calculate tangible book value per share by dividing tangible common equity by common shares outstanding, as compared to book value per share, which we calculate by dividing common stockholders' equity by shares outstanding. We calculate the tangible common equity ratio by excluding the balance of intangible assets from common stockholders' equity and dividing by tangible assets. We believe that this information is consistent with the treatment by bank regulatory agencies, which excludes intangible assets from the calculation of risk-based capital ratios. Accordingly, we believe that these non-GAAP financial measures provide information that is important to investors and that is useful in understanding our capital position and ratios.

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

June 30,

(Dollars in thousands, except per share data)

 

2024

 

2024

 

2023

 

2023

 

2023

Total stockholders' equity

 

$

2,923,764

 

 

$

2,902,801

 

 

$

2,882,581

 

 

$

2,855,534

 

 

$

2,849,134

 

Less: intangible assets

 

 

938,998

 

 

 

941,761

 

 

 

944,597

 

 

 

947,619

 

 

 

950,674

 

Tangible common equity

 

$

1,984,766

 

 

$

1,961,040

 

 

$

1,937,984

 

 

$

1,907,915

 

 

$

1,898,460

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

18,332,325

 

 

$

18,813,181

 

 

$

19,026,645

 

 

$

20,275,720

 

 

$

20,747,883

 

Less: intangible assets

 

 

938,998

 

 

 

941,761

 

 

 

944,597

 

 

 

947,619

 

 

 

950,674

 

Tangible assets

 

$

17,393,327

 

 

$

17,871,420

 

 

$

18,082,048

 

 

$

19,328,101

 

 

$

19,797,209

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity ratio

 

 

11.41

%

 

 

10.97

%

 

 

10.72

%

 

 

9.87

%

 

 

9.59

%

 

 

 

 

 

 

 

 

 

 

 

Common shares issued and outstanding

 

 

96,434,047

 

 

 

96,459,966

 

 

 

95,860,092

 

 

 

95,900,847

 

 

 

95,906,217

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share

 

$

30.32

 

 

$

30.09

 

 

$

30.07

 

 

$

29.78

 

 

$

29.71

 

Less: intangible book value per share

 

 

9.74

 

 

 

9.76

 

 

 

9.85

 

 

 

9.88

 

 

 

9.91

 

Tangible book value per share

 

$

20.58

 

 

$

20.33

 

 

$

20.22

 

 

$

19.89

 

 

$

19.79

 

Cost of non-maturity deposits is a non-GAAP financial measure derived from GAAP-based amounts. Cost of non-maturity deposits is calculated as the ratio of non-maturity deposit interest expense to average non-maturity deposits. We calculate non-maturity deposit interest expense by excluding interest expense for all certificates of deposit from total deposit expense, and we calculate average non-maturity deposits by excluding all certificates of deposit from total deposits. Management believes cost of non-maturity deposits is a useful measure to assess the Company's deposit base, including its potential volatility.

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

June 30,

 

March 31,

 

June 30,

(Dollars in thousands)

 

2024

 

2024

 

2023

Total deposits interest expense

 

$

64,229

 

 

$

59,506

 

 

$

53,580

 

Less: certificates of deposit interest expense

 

 

21,115

 

 

 

19,075

 

 

 

10,306

 

Less: brokered certificates of deposit interest expense

 

 

6,506

 

 

 

6,669

 

 

 

18,869

 

Non-maturity deposit expense

 

$

36,608

 

 

$

33,762

 

 

$

24,405

 

 

 

 

 

 

 

 

Total average deposits

 

$

14,941,573

 

 

$

15,055,747

 

 

$

16,876,251

 

Less: average certificates of deposit

 

 

1,830,516

 

 

 

1,727,728

 

 

 

1,286,160

 

Less: average brokered certificates of deposit

 

 

542,699

 

 

 

568,872

 

 

 

1,767,970

 

Average non-maturity deposits

 

$

12,568,358

 

 

$

12,759,147

 

 

$

13,822,121

 

 

 

 

 

 

 

 

Cost of non-maturity deposits

 

 

1.17

%

 

 

1.06

%

 

 

0.71

%

 

Contacts

Pacific Premier Bancorp, Inc.

Steven R. Gardner

Chairman, Chief Executive Officer, and President

(949) 864-8000

Ronald J. Nicolas, Jr.

Senior Executive Vice President and Chief Financial Officer

(949) 864-8000

Matthew J. Lazzaro

Senior Vice President and Director of Investor Relations

(949) 243-1082

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