Pacific Premier Bancorp, Inc. Announces First Quarter 2021 Financial Results and Increases Quarterly Cash Dividend to $0.33 per Share
Pacific Premier Bancorp (NASDAQ: PPBI) reported a net income of $68.7 million, or $0.72 per diluted share for Q1 2021, marking an increase from $67.1 million, or $0.71 per diluted share in Q4 2020, and $25.7 million, or $0.43 per diluted share in Q1 2020. Total assets reached $20.17 billion, up from $19.74 billion in Q4 2020. The company increased its dividend to $0.33 per share. Despite challenges, loan production exceeded $1.15 billion, a 27% increase from the previous quarter, supported by robust asset quality and lower deposit costs.
- Net income rose to $68.7 million, up 2.4% QoQ and 167.3% YoY.
- Loan production reached $1.15 billion, a 27% increase from Q4 2020.
- Quarterly dividend increased to $0.33 per share, up from $0.30.
- Total assets increased to $20.17 billion, reflecting strong growth.
- Net interest income decreased by $6.5 million, or 3.9% from the previous quarter.
- Non-performing loans increased to $38.9 million, up from $29.2 million in the previous quarter.
- Provision for credit losses increased slightly to $2 million, from $1.5 million in Q4.
Pacific Premier Bancorp, Inc. (NASDAQ: PPBI) (the “Company” or “Pacific Premier”), the holding company of Pacific Premier Bank (the “Bank”), reported net income of
For the quarter ended March 31, 2021, the Company’s return on average assets (“ROAA”) was
Steven R. Gardner, Chairman, President, and Chief Executive Officer of the Company, commented, “Our first quarter results reflect the strength and discipline of the organization we have built, as our ability to offset a challenging environment by reducing our deposit costs, tightly controlling operating expenses, and maintaining exceptional asset quality helped us to continue generating a high level of profitability.
“We were able to largely offset another quarter of significant payoffs and a decline in credit line utilization rates with a record level of new loan production. Despite the first quarter typically being a seasonally low period for the origination of new loans, we generated more than
“Our loan pipeline continues to build, which should put us in a good position to generate loan growth as we move through the year, favorably remix the balance sheet towards higher yielding earning assets, and drive growth in net interest income.
“Given our consistent financial performance and our increasing confidence in the outlook for earnings growth as the economy strengthens, we have increased our common stock dividend to
FINANCIAL HIGHLIGHTS
|
|
Three Months Ended |
||||||||||
|
|
March 31, |
|
December 31, |
|
March 31, |
||||||
|
|
2021 |
|
2020 |
|
2020 |
||||||
Financial Highlights (Unaudited) |
|
(Dollars in thousands, except per share data) |
||||||||||
Net income |
|
$ |
68,668 |
|
|
$ |
67,136 |
|
|
$ |
25,740 |
|
Diluted earnings per share |
|
0.72 |
|
|
0.71 |
|
|
0.43 |
|
|||
Common equity dividend per share paid |
|
0.30 |
|
|
0.28 |
|
|
0.25 |
|
|||
Return on average assets |
|
1.37 |
% |
|
1.34 |
% |
|
0.89 |
% |
|||
Return on average equity |
|
9.99 |
|
|
9.91 |
|
|
5.05 |
|
|||
Return on average tangible common equity (1) |
|
16.21 |
|
|
16.32 |
|
|
9.96 |
|
|||
Pre-provision net revenue on average assets (1) |
|
1.86 |
|
|
1.92 |
|
|
2.03 |
|
|||
Net interest margin |
|
3.55 |
|
|
3.61 |
|
|
4.24 |
|
|||
Core net interest margin (1) |
|
3.30 |
|
|
3.32 |
|
|
4.08 |
|
|||
Cost of deposits |
|
0.11 |
|
|
0.14 |
|
|
0.48 |
|
|||
Efficiency ratio (1) |
|
48.6 |
|
|
48.5 |
|
|
52.6 |
|
|||
Noninterest expense (excluding merger-related expense) as a percent of average assets (1) |
|
1.85 |
|
|
1.89 |
|
|
2.24 |
|
|||
Total assets |
|
$ |
20,173,298 |
|
|
$ |
19,736,544 |
|
|
$ |
11,976,209 |
|
Total deposits |
|
16,740,007 |
|
|
16,214,177 |
|
|
9,093,072 |
|
|||
Loans to deposit ratio |
|
78 |
% |
|
82 |
% |
|
96 |
% |
|||
Non-maturity deposits as a percent of total deposits |
|
92 |
% |
|
90 |
% |
|
88 |
% |
|||
Book value per share |
|
$ |
28.56 |
|
|
$ |
29.07 |
|
|
$ |
33.40 |
|
Tangible book value per share (1) |
|
18.19 |
|
|
18.65 |
|
|
18.60 |
|
|||
Total risk-based capital ratio |
|
16.26 |
% |
|
16.31 |
% |
|
14.23 |
% |
|||
______________________________ |
||
(1)
|
A reconciliation of the non-GAAP measures of return on average tangible common equity, pre-provision net revenue on average assets, core net interest margin, efficiency ratio, noninterest expense (excluding merger-related expense) as a percent of average assets, and tangible book value per share to the GAAP measures of net income, common stockholders' equity, and book value are set forth at the end of this press release. |
|
INCOME STATEMENT HIGHLIGHTS
Net Interest Income and Net Interest Margin
Net interest income totaled
The net interest margin for the first quarter of 2021 was
Net interest income for the first quarter of 2021 increased
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES |
|||||||||||||||||||||||||||||||||
CONSOLIDATED AVERAGE BALANCES AND YIELD DATA |
|||||||||||||||||||||||||||||||||
(Dollars in thousands) |
|||||||||||||||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||||||||||||||
|
|
Three Months Ended |
|||||||||||||||||||||||||||||||
|
|
March 31, 2021 |
|
December 31, 2020 |
|
March 31, 2020 |
|||||||||||||||||||||||||||
|
|
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 |
|
$ |
1,309,366 |
|
|
$ |
301 |
|
|
0.09 |
% |
|
$ |
1,239,035 |
|
|
$ |
286 |
|
|
0.09 |
% |
|
$ |
215,746 |
|
|
$ |
216 |
|
|
0.40 |
% |
Investment securities |
|
4,087,451 |
|
|
17,468 |
|
|
1.71 |
|
|
3,964,592 |
|
|
17,039 |
|
|
1.72 |
|
|
1,502,572 |
|
|
10,308 |
|
|
2.74 |
|
||||||
Loans receivable, net (1) (2) |
|
13,093,609 |
|
|
155,225 |
|
|
4.81 |
|
|
13,315,810 |
|
|
163,499 |
|
|
4.88 |
|
|
8,645,252 |
|
|
113,265 |
|
|
5.27 |
|
||||||
Total interest-earning assets |
|
$ |
18,490,426 |
|
|
$ |
172,994 |
|
|
3.79 |
|
|
$ |
18,519,437 |
|
|
$ |
180,824 |
|
|
3.88 |
|
|
$ |
10,363,570 |
|
|
$ |
123,789 |
|
|
4.80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing deposits |
|
$ |
10,420,199 |
|
|
$ |
4,426 |
|
|
0.17 |
|
|
$ |
10,384,229 |
|
|
$ |
5,685 |
|
|
0.22 |
|
|
$ |
4,956,839 |
|
|
$ |
10,487 |
|
|
0.85 |
|
Borrowings |
|
523,565 |
|
|
6,916 |
|
|
5.36 |
|
|
539,021 |
|
|
6,941 |
|
|
5.12 |
|
|
552,741 |
|
|
4,127 |
|
|
3.00 |
|
||||||
Total interest-bearing liabilities |
|
$ |
10,943,764 |
|
|
$ |
11,342 |
|
|
0.42 |
|
|
$ |
10,923,250 |
|
|
$ |
12,626 |
|
|
0.46 |
|
|
$ |
5,509,580 |
|
|
$ |
14,614 |
|
|
1.07 |
|
Noninterest-bearing deposits |
|
$ |
6,034,319 |
|
|
|
|
|
|
$ |
6,125,171 |
|
|
|
|
|
|
$ |
3,898,399 |
|
|
|
|
|
|||||||||
Net interest income |
|
|
|
$ |
161,652 |
|
|
|
|
|
|
$ |
168,198 |
|
|
|
|
|
|
$ |
109,175 |
|
|
|
|||||||||
Net interest margin (3) |
|
|
|
|
|
3.55 |
|
|
|
|
|
|
3.61 |
|
|
|
|
|
|
4.24 |
|
||||||||||||
Cost of deposits |
|
|
|
|
|
0.11 |
|
|
|
|
|
|
0.14 |
|
|
|
|
|
|
0.48 |
|
||||||||||||
Cost of funds (4) |
|
|
|
|
|
0.27 |
|
|
|
|
|
|
0.29 |
|
|
|
|
|
|
0.62 |
|
||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities |
|
168.96 |
|
|
|
|
|
|
169.54 |
|
|
|
|
|
|
188.10 |
|
||||||||||||||||
______________________________ |
||
(1) |
Average balance includes loans held for sale and nonperforming loans and is net of deferred loan origination fees/costs and discounts/premiums. |
|
(2) |
Interest income includes net discount accretion of |
|
(3) |
Represents annualized net interest income divided by average interest-earning assets. |
|
(4) |
Represents annualized total interest expense divided by the sum of average total interest-bearing liabilities and noninterest-bearing deposits. |
|
Provision for Credit Losses
Provision for credit losses for the first quarter of 2021 was
|
|
Three Months Ended |
|||||||||||
|
|
March 31, |
|
December 31, |
|
March 31, |
|||||||
|
|
2021 |
|
2020 |
|
2020 |
|||||||
Provision for Credit Losses |
|
(Dollars in thousands) |
|||||||||||
Provision for loan losses |
|
$ |
315 |
|
|
$ |
(8,079 |
) |
|
|
$ |
25,382 |
|
Provision for unfunded commitments |
|
1,659 |
|
|
9,596 |
|
|
|
72 |
|
|||
Total provision for credit losses |
|
$ |
1,974 |
|
|
$ |
1,517 |
|
|
|
$ |
25,454 |
|
Noninterest Income
Noninterest income for the first quarter of 2021 was
During the first quarter of 2021, the Bank sold
During the first quarter of 2021, the Bank sold
Noninterest income for the first quarter of 2021 increased
The net gain from sales of loans for the first quarter of 2021 decreased from the same period last year primarily due to the sale of
|
|
Three Months Ended |
||||||||||
|
|
March 31, |
|
December 31, |
|
March 31, |
||||||
|
|
2021 |
|
2020 |
|
2020 |
||||||
Noninterest Income |
|
(Dollars in thousands) |
||||||||||
Loan servicing income |
|
$ |
458 |
|
|
$ |
633 |
|
|
$ |
480 |
|
Service charges on deposit accounts |
|
2,032 |
|
|
2,005 |
|
|
1,715 |
|
|||
Other service fee income |
|
473 |
|
|
459 |
|
|
311 |
|
|||
Debit card interchange fee income |
|
787 |
|
|
777 |
|
|
348 |
|
|||
Earnings on BOLI |
|
2,233 |
|
|
2,240 |
|
|
1,336 |
|
|||
Net gain from sales of loans |
|
361 |
|
|
328 |
|
|
771 |
|
|||
Net gain from sales of investment securities |
|
4,046 |
|
|
5,002 |
|
|
7,760 |
|
|||
Trust custodial account fees |
|
7,222 |
|
|
7,296 |
|
|
— |
|
|||
Escrow and exchange fees |
|
1,526 |
|
|
1,257 |
|
|
— |
|
|||
Other income |
|
4,602 |
|
|
3,197 |
|
|
1,754 |
|
|||
Total noninterest income |
|
$ |
23,740 |
|
|
$ |
23,194 |
|
|
$ |
14,475 |
|
Noninterest Expense
Noninterest expense totaled
Noninterest expense increased by
|
|
Three Months Ended |
|||||||||||
|
|
March 31, |
|
December 31, |
|
March 31, |
|||||||
|
|
2021 |
|
2020 |
|
2020 |
|||||||
Noninterest Expense |
|
(Dollars in thousands) |
|||||||||||
Compensation and benefits |
|
$ |
52,548 |
|
|
$ |
52,044 |
|
|
|
$ |
34,376 |
|
Premises and occupancy |
|
11,980 |
|
|
13,268 |
|
|
|
8,168 |
|
|||
Data processing |
|
5,828 |
|
|
5,990 |
|
|
|
3,253 |
|
|||
Other real estate owned operations, net |
|
— |
|
|
(5 |
) |
|
|
14 |
|
|||
FDIC insurance premiums |
|
1,181 |
|
|
1,213 |
|
|
|
367 |
|
|||
Legal and professional services |
|
3,935 |
|
|
4,305 |
|
|
|
3,126 |
|
|||
Marketing expense |
|
1,598 |
|
|
1,442 |
|
|
|
1,412 |
|
|||
Office expense |
|
1,829 |
|
|
2,191 |
|
|
|
1,103 |
|
|||
Loan expense |
|
1,115 |
|
|
1,084 |
|
|
|
822 |
|
|||
Deposit expense |
|
3,859 |
|
|
5,026 |
|
|
|
4,988 |
|
|||
Merger-related expense |
|
5 |
|
|
5,071 |
|
|
|
1,724 |
|
|||
Amortization of intangible assets |
|
4,143 |
|
|
4,505 |
|
|
|
3,965 |
|
|||
Other expense |
|
4,468 |
|
|
3,805 |
|
|
|
3,313 |
|
|||
Total noninterest expense |
|
$ |
92,489 |
|
|
$ |
99,939 |
|
|
|
$ |
66,631 |
|
Income Tax
For the first quarter of 2021, our effective tax rate was
BALANCE SHEET HIGHLIGHTS
Loans
Loans held for investment totaled
During the first quarter of 2021, the Bank generated
The increase in loans held for investment from March 31, 2020 was primarily due to the acquisition of Opus, which added
At March 31, 2021, the ratio of loans held for investment to total deposits was
The following table presents the composition of the loan portfolio as of the dates indicated:
|
|
March 31, |
|
December 31, |
|
March 31, |
|||||||||
|
|
2021 |
|
2020 |
|
2020 |
|||||||||
|
|
(Dollars in thousands) |
|||||||||||||
Investor loans secured by real estate |
|
|
|
|
|
|
|||||||||
Commercial real estate (“CRE”) non-owner-occupied |
|
$ |
2,729,785 |
|
|
|
$ |
2,675,085 |
|
|
|
$ |
2,040,198 |
|
|
Multifamily |
|
5,309,592 |
|
|
|
5,171,356 |
|
|
|
1,625,682 |
|
|
|||
Construction and land |
|
316,458 |
|
|
|
321,993 |
|
|
|
377,525 |
|
|
|||
SBA secured by real estate (1) |
|
56,381 |
|
|
|
57,331 |
|
|
|
61,665 |
|
|
|||
Total investor loans secured by real estate |
|
8,412,216 |
|
|
|
8,225,765 |
|
|
|
4,105,070 |
|
|
|||
Business loans secured by real estate (2) |
|
|
|
|
|
|
|||||||||
CRE owner-occupied |
|
2,029,984 |
|
|
|
2,114,050 |
|
|
|
1,887,632 |
|
|
|||
Franchise real estate secured |
|
340,805 |
|
|
|
347,932 |
|
|
|
371,428 |
|
|
|||
SBA secured by real estate (3) |
|
73,967 |
|
|
|
79,595 |
|
|
|
83,640 |
|
|
|||
Total business loans secured by real estate |
|
2,444,756 |
|
|
|
2,541,577 |
|
|
|
2,342,700 |
|
|
|||
Commercial loans (4) |
|
|
|
|
|
|
|||||||||
Commercial and industrial |
|
1,656,098 |
|
|
|
1,768,834 |
|
|
|
1,458,969 |
|
|
|||
Franchise non-real estate secured |
|
399,041 |
|
|
|
444,797 |
|
|
|
547,793 |
|
|
|||
SBA non-real estate secured |
|
14,908 |
|
|
|
15,957 |
|
|
|
16,265 |
|
|
|||
Total commercial loans |
|
2,070,047 |
|
|
|
2,229,588 |
|
|
|
2,023,027 |
|
|
|||
Retail loans |
|
|
|
|
|
|
|||||||||
Single family residential (5) |
|
184,049 |
|
|
|
232,574 |
|
|
|
237,180 |
|
|
|||
Consumer |
|
6,324 |
|
|
|
6,929 |
|
|
|
46,892 |
|
|
|||
Total retail loans |
|
190,373 |
|
|
|
239,503 |
|
|
|
284,072 |
|
|
|||
Gross loans held for investment (6) |
|
13,117,392 |
|
|
|
13,236,433 |
|
|
|
8,754,869 |
|
|
|||
Allowance for credit losses for loans held for investment |
|
(266,999 |
) |
|
|
(268,018 |
) |
|
|
(115,422 |
) |
|
|||
Loans held for investment, net |
|
$ |
12,850,393 |
|
|
|
$ |
12,968,415 |
|
|
|
$ |
8,639,447 |
|
|
|
|
|
|
|
|
|
|||||||||
Loans held for sale, at lower of cost or fair value |
|
$ |
7,311 |
|
|
|
$ |
601 |
|
|
|
$ |
111 |
|
|
______________________________ |
||
(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 unaccreted fair value net purchase discounts of |
The total end-of-period weighted average interest rate on loans, excluding fees and discounts, at March 31, 2021 was
The following table presents the composition of loan commitments originated during the quarters indicated:
|
|
March 31, |
|
December 31, |
|
March 31, |
||||||
|
|
2021 |
|
2020 |
|
2020 |
||||||
|
|
(Dollars in thousands) |
||||||||||
Investor loans secured by real estate |
|
|
|
|
|
|
||||||
CRE non-owner-occupied |
|
$ |
128,408 |
|
|
$ |
80,298 |
|
|
$ |
111,980 |
|
Multifamily |
|
407,156 |
|
|
398,651 |
|
|
39,831 |
|
|||
Construction and land |
|
94,124 |
|
|
60,336 |
|
|
26,525 |
|
|||
SBA secured by real estate (1) |
|
— |
|
|
— |
|
|
2,131 |
|
|||
Total investor loans secured by real estate |
|
629,688 |
|
|
539,285 |
|
|
180,467 |
|
|||
Business loans secured by real estate (2) |
|
|
|
|
|
|
||||||
CRE owner-occupied |
|
110,353 |
|
|
96,779 |
|
|
115,774 |
|
|||
Franchise real estate secured |
|
24,429 |
|
|
27,162 |
|
|
21,577 |
|
|||
SBA secured by real estate (3) |
|
4,101 |
|
|
1,999 |
|
|
7,119 |
|
|||
Total business loans secured by real estate |
|
138,883 |
|
|
125,940 |
|
|
144,470 |
|
|||
Commercial loans (4) |
|
|
|
|
|
|
||||||
Commercial and industrial |
|
352,530 |
|
|
228,076 |
|
|
97,381 |
|
|||
Franchise non-real estate secured |
|
17,647 |
|
|
8,005 |
|
|
12,414 |
|
|||
SBA non-real estate secured |
|
686 |
|
|
283 |
|
|
1,263 |
|
|||
Total commercial loans |
|
370,863 |
|
|
236,364 |
|
|
111,058 |
|
|||
Retail loans |
|
|
|
|
|
|
||||||
Single family residential (5) |
|
13,353 |
|
|
8,888 |
|
|
6,052 |
|
|||
Consumer |
|
558 |
|
|
786 |
|
|
1,635 |
|
|||
Total retail loans |
|
13,911 |
|
|
9,674 |
|
|
7,687 |
|
|||
Total loan commitments |
|
$ |
1,153,345 |
|
|
$ |
911,263 |
|
|
$ |
443,682 |
|
______________________________ |
||
(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 weighted average interest rate on new loan commitments was
Asset Quality and Allowance for Credit Losses
At March 31, 2021, our allowance for credit losses (“ACL”) on loans held for investment was
During the first quarter of 2021, the Company incurred
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 March 31, 2021 |
||||||||||||||||||||
|
Beginning ACL Balance |
|
Charge-offs |
|
Recoveries |
|
Provision for Credit Losses |
|
Ending ACL Balance |
||||||||||||
|
(Dollars in thousands) |
||||||||||||||||||||
Investor loans secured by real estate |
|
|
|
|
|
|
|
|
|
||||||||||||
CRE non-owner occupied |
$ |
49,176 |
|
|
$ |
(154 |
) |
|
|
$ |
— |
|
|
$ |
(3,477 |
) |
|
|
$ |
45,545 |
|
Multifamily |
62,534 |
|
|
— |
|
|
|
— |
|
|
17,281 |
|
|
|
79,815 |
|
|||||
Construction and land |
12,435 |
|
|
— |
|
|
|
— |
|
|
828 |
|
|
|
13,263 |
|
|||||
SBA secured by real estate (1) |
5,159 |
|
|
(265 |
) |
|
|
— |
|
|
247 |
|
|
|
5,141 |
|
|||||
Business loans secured by real estate (2) |
|
|
|
|
|
|
|
|
|
||||||||||||
CRE owner-occupied |
50,517 |
|
|
— |
|
|
|
15 |
|
|
(8,938 |
) |
|
|
41,594 |
|
|||||
Franchise real estate secured |
11,451 |
|
|
— |
|
|
|
— |
|
|
(575 |
) |
|
|
10,876 |
|
|||||
SBA secured by real estate (3) |
6,567 |
|
|
(98 |
) |
|
|
— |
|
|
(18 |
) |
|
|
6,451 |
|
|||||
Commercial loans (4) |
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial |
46,964 |
|
|
(1,279 |
) |
|
|
601 |
|
|
(2,913 |
) |
|
|
43,373 |
|
|||||
Franchise non-real estate secured |
20,525 |
|
|
(156 |
) |
|
|
— |
|
|
(1,466 |
) |
|
|
18,903 |
|
|||||
SBA non-real estate secured |
995 |
|
|
— |
|
|
|
2 |
|
|
(107 |
) |
|
|
890 |
|
|||||
Retail loans |
|
|
|
|
|
|
|
|
|
||||||||||||
Single family residential (5) |
1,204 |
|
|
— |
|
|
|
— |
|
|
(382 |
) |
|
|
822 |
|
|||||
Consumer loans |
491 |
|
|
— |
|
|
|
— |
|
|
(165 |
) |
|
|
326 |
|
|||||
Totals |
$ |
268,018 |
|
|
$ |
(1,952 |
) |
|
|
$ |
618 |
|
|
$ |
315 |
|
|
|
$ |
266,999 |
|
______________________________ |
||
(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 allowance for credit losses to loans held for investment at March 31, 2021 was
Nonperforming assets totaled
Classified loans totaled
Interest is not typically accrued on loans 90 days or more past due or when, in the opinion of management, there is reasonable doubt as to the timely collection of principal or interest. There were no loans 90 days or more past due and still accruing interest at March 31, 2021. There were no troubled debt restructured loans at March 31, 2021 or December 31, 2020. Troubled debt restructured loans totaled
At March 31, 2021, there were no loans remaining within their modification period due to COVID-19 hardship under the CARES Act. Additionally, as of March 31, 2021, there were no loans in-process for potential modification. At December 31, 2020, 52 loans totaling
|
|
March 31, |
|
December 31, |
|
March 31, |
||||||
|
|
2021 |
|
2020 |
|
2020 |
||||||
Asset Quality |
|
(Dollars in thousands) |
||||||||||
Nonperforming loans |
|
$ |
38,909 |
|
|
$ |
29,209 |
|
|
$ |
20,610 |
|
Other real estate owned |
|
— |
|
|
— |
|
|
441 |
|
|||
Other assets owned |
|
— |
|
|
— |
|
|
— |
|
|||
Nonperforming assets |
|
$ |
38,909 |
|
|
$ |
29,209 |
|
|
$ |
21,051 |
|
|
|
|
|
|
|
|
||||||
Total classified assets (1) |
|
$ |
134,667 |
|
|
$ |
128,332 |
|
|
$ |
54,586 |
|
Allowance for credit losses |
|
266,999 |
|
|
268,018 |
|
|
115,422 |
|
|||
Allowance for credit losses as a percent of total nonperforming loans |
|
686 |
% |
|
918 |
% |
|
560 |
% |
|||
Nonperforming loans as a percent of loans held for investment |
|
0.30 |
|
|
0.22 |
|
|
0.24 |
|
|||
Nonperforming assets as a percent of total assets |
|
0.19 |
|
|
0.15 |
|
|
0.18 |
|
|||
Classified loans to total loans held for investment |
|
1.03 |
|
|
0.97 |
|
|
0.62 |
|
|||
Classified assets to total assets |
|
0.67 |
|
|
0.65 |
|
|
0.46 |
|
|||
Net loan charge-offs for the quarter ended |
|
$ |
1,334 |
|
|
$ |
6,406 |
|
|
$ |
1,344 |
|
Net loan charge-offs for the quarter to average total loans |
|
0.01 |
% |
|
0.05 |
% |
|
0.02 |
% |
|||
Allowance for credit losses to loans held for investment (2) |
|
2.04 |
|
|
2.02 |
|
|
1.32 |
|
|||
Loans modified under the CARES Act |
|
$ |
— |
|
|
$ |
79,465 |
|
|
$ |
— |
|
Loans modified under the CARES Act as a percent of loans held for investment |
|
— |
% |
|
0.60 |
% |
|
— |
% |
|||
Delinquent Loans |
|
|
|
|
|
|
||||||
30 - 59 days |
|
$ |
13,116 |
|
|
$ |
1,269 |
|
|
$ |
8,285 |
|
60 - 89 days |
|
61 |
|
|
57 |
|
|
1,502 |
|
|||
90+ days |
|
9,410 |
|
|
11,996 |
|
|
19,084 |
|
|||
Total delinquency |
|
$ |
22,587 |
|
|
$ |
13,322 |
|
|
$ |
28,871 |
|
Delinquency as a percentage of loans held for investment |
|
0.17 |
% |
|
0.10 |
% |
|
0.33 |
% |
|||
______________________________ |
||
(1) |
Includes substandard loans and other real estate owned. |
|
(2) |
At March 31, 2021, |
|
Investment Securities
Investment securities totaled
Deposits
At March 31, 2021, deposits totaled
The weighted average cost of deposits for the first quarter of 2021 was
The end of period weighted average rate of deposits at March 31, 2021 was
|
|
March 31, |
|
December 31, |
|
March 31, |
||||||
|
|
2021 |
|
2020 |
|
2020 |
||||||
Deposit Accounts |
|
(Dollars in thousands) |
||||||||||
Noninterest-bearing checking |
|
$ |
6,302,703 |
|
|
$ |
6,011,106 |
|
|
$ |
3,943,260 |
|
Interest-bearing: |
|
|
|
|
|
|
||||||
Checking |
|
3,155,071 |
|
|
2,913,260 |
|
|
577,966 |
|
|||
Money market/savings |
|
5,911,417 |
|
|
5,662,969 |
|
|
3,499,305 |
|
|||
Retail certificates of deposit |
|
1,353,431 |
|
|
1,471,512 |
|
|
897,680 |
|
|||
Wholesale/brokered certificates of deposit |
|
17,385 |
|
|
155,330 |
|
|
174,861 |
|
|||
Total interest-bearing |
|
10,437,304 |
|
|
10,203,071 |
|
|
5,149,812 |
|
|||
Total deposits |
|
$ |
16,740,007 |
|
|
$ |
16,214,177 |
|
|
$ |
9,093,072 |
|
|
|
|
|
|
|
|
||||||
Cost of deposits |
|
0.11 |
% |
|
0.14 |
% |
|
0.48 |
% |
|||
Noninterest-bearing deposits as a percentage of total deposits |
|
37.7 |
|
|
37.1 |
|
|
43.4 |
|
|||
Non-maturity deposits as a percent of total deposits |
|
91.8 |
|
|
90.0 |
|
|
88.2 |
|
|||
Core deposits as a percent of total deposits (1) |
|
96.2 |
|
|
94.9 |
|
|
93.0 |
|
|||
______________________________ |
||
(1) |
Core deposits are all transaction accounts and non-brokered certificates of deposit less than |
|
Borrowings
At March 31, 2021, total borrowings amounted to
Capital Ratios
At March 31, 2021, our common stockholder's equity was
The Company implemented the 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. At March 31, 2021, the Company exceeded all regulatory minimum capital adequacy requirements, inclusive of the fully phased in capital conservation buffer, with a tier 1 leverage ratio of
At March 31, 2021, the Bank had a tier 1 leverage ratio of
|
|
March 31, |
|
December 31, |
|
March 31, |
||||||
Capital Ratios |
|
2021 |
|
2020 |
|
2020 |
||||||
Pacific Premier Bancorp, Inc. Consolidated |
|
|
|
|
|
|
||||||
Tier 1 leverage ratio |
|
9.66 |
% |
|
9.47 |
% |
|
10.68 |
% |
|||
Common equity tier 1 risk-based capital ratio |
|
12.05 |
|
|
12.04 |
|
|
11.59 |
|
|||
Tier 1 risk-based capital ratio |
|
12.05 |
|
|
12.04 |
|
|
11.66 |
|
|||
Total risk-based capital ratio |
|
16.26 |
|
|
16.31 |
|
|
14.23 |
|
|||
Tangible common equity ratio |
|
8.97 |
|
|
9.40 |
|
|
10.06 |
|
|||
|
|
|
|
|
|
|
||||||
Pacific Premier Bank |
|
|
|
|
|
|
||||||
Tier 1 leverage ratio |
|
11.13 |
% |
|
10.89 |
% |
|
12.54 |
% |
|||
Common equity tier 1 risk-based capital ratio |
|
13.90 |
|
|
13.84 |
|
|
13.70 |
|
|||
Tier 1 risk-based capital ratio |
|
13.90 |
|
|
13.84 |
|
|
13.70 |
|
|||
Total risk-based capital ratio |
|
15.92 |
|
|
15.89 |
|
|
14.28 |
|
|||
|
|
|
|
|
|
|
||||||
Share Data |
|
|
|
|
|
|
||||||
Book value per share |
|
$ |
28.56 |
|
|
$ |
29.07 |
|
|
$ |
33.40 |
|
Tangible book value per share (1) |
|
18.19 |
|
|
18.65 |
|
|
18.60 |
|
|||
Common equity dividend per share paid |
|
0.30 |
|
|
0.28 |
|
|
0.25 |
|
|||
Closing stock price (2) |
|
43.44 |
|
|
31.33 |
|
|
18.84 |
|
|||
Shares issued and outstanding |
|
94,644,415 |
|
|
94,483,136 |
|
|
59,975,281 |
|
|||
Market capitalization (2)(3) |
|
$ |
4,111,353 |
|
|
$ |
2,960,157 |
|
|
$ |
1,129,934 |
|
______________________________ |
||
(1) |
A reconciliation of the GAAP measures of tangible common equity and tangible book value per share to the GAAP measures of common stockholders' equity and book value per share is set forth 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 April 23, 2021, the Company's Board of Directors declared a
Subsequent Events
On April 15, 2021, the Company redeemed all three subordinated notes totaling
Conference Call and Webcast
The Company will host a conference call at 9:00 a.m. PT / 12:00 p.m. ET on April 27, 2021 to discuss its financial results. Analysts and investors may participate in the question-and-answer session. A live webcast will be available on the Webcasts page of the Company's investor relations website. An archived version of the webcast will be available in the same location shortly after the live call has ended. The conference call can be accessed by telephone at (866) 290-5977 and asking to be joined to the Pacific Premier Bancorp conference call. Additionally, a telephone replay will be made available through May 4, 2021 at (877) 344-7529, conference ID 10153857.
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
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, 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. The COVID-19 pandemic is adversely affecting us, our customers, counterparties, employees, and third-party service providers, and given its ongoing and dynamic nature, the ultimate extent of the impacts on our business, financial position, results of operations, liquidity, and prospects is uncertain. Continued deterioration in general business and economic conditions, including further increases in unemployment rates, or turbulence in domestic or global financial markets could adversely affect our revenues and the values of our assets and liabilities, reduce the availability of funding, lead to a tightening of credit, and further increase stock price volatility, which could result in impairment to our goodwill in future periods. In addition, changes to statutes, regulations, or regulatory policies or practices as a result of, or in response to the COVID-19 pandemic, could affect us in substantial and unpredictable ways, including the potential adverse impact of loan modifications and payment deferrals implemented consistent with recent regulatory guidance. Other risks and uncertainties include, but are not limited to, the following: the strength of the United States economy in general and the strength of the local economies in which we conduct operations; the effects of, and changes in, trade, monetary, and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; inflation/deflation, interest rate, market and monetary fluctuations; 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; 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; the effectiveness of our risk management framework and quantitative models; changes in the level of our nonperforming assets and charge-offs; the expected discontinuation of LIBOR and uncertainty regarding potential alternative reference rates, including SOFR; 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, including ASU 2016-13 (Topic 326), “Measurement of Credit Losses on Financial Instruments,” commonly referenced as the CECL model, which has changed how we estimate credit losses and may further increase the required level of our allowance for credit losses in future periods; possible credit related impairments of securities held by us; possible impairment charges to goodwill; the impact of governmental efforts to restructure the U.S. financial regulatory system; changes in consumer spending, borrowing and savings habits; the effects of our lack of a diversified loan portfolio, including the risks of geographic and industry concentrations; our ability to attract deposits and other sources of liquidity; the possibility that we may reduce or discontinue the payments of dividends on our common stock; the possibility that we may discontinue our newly approved stock repurchase program or reduce or otherwise limit the level of repurchases of our common stock we may make from time to time pursuant to such 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, which could impact business and economic conditions in the United States and abroad; public health crisis and pandemics, including the COVID-19 pandemic, 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, including the costs of compliance with potential legislation to combat cybersecurity at a state, national or global level; 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 2020 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.
(PPBI-ER)
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES |
|||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION |
|||||||||||||||||||||||||
(Dollars in thousands) |
|||||||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||||||
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|||||||||||||||
|
|
2021 |
|
|
2020 |
|
|
2020 |
|
|
2020 |
|
|
2020 |
|
||||||||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Cash and cash equivalents |
|
$ |
1,554,668 |
|
|
|
$ |
880,766 |
|
|
|
$ |
1,103,077 |
|
|
|
$ |
1,341,730 |
|
|
|
$ |
534,032 |
|
|
Interest-bearing time deposits with financial institutions |
|
2,708 |
|
|
|
2,845 |
|
|
|
2,845 |
|
|
|
2,845 |
|
|
|
2,708 |
|
|
|||||
Investments held-to-maturity, at amortized cost |
|
21,931 |
|
|
|
23,732 |
|
|
|
27,980 |
|
|
|
32,557 |
|
|
|
34,553 |
|
|
|||||
Investment securities available-for-sale, at fair value |
|
3,857,337 |
|
|
|
3,931,115 |
|
|
|
3,600,731 |
|
|
|
2,336,066 |
|
|
|
1,337,761 |
|
|
|||||
FHLB, FRB, and other stock, at cost |
|
117,843 |
|
|
|
117,055 |
|
|
|
116,819 |
|
|
|
94,658 |
|
|
|
92,858 |
|
|
|||||
Loans held for sale, at lower of amortized cost or fair value |
|
7,311 |
|
|
|
601 |
|
|
|
1,032 |
|
|
|
1,007 |
|
|
|
111 |
|
|
|||||
Loans held for investment |
|
13,117,392 |
|
|
|
13,236,433 |
|
|
|
13,450,840 |
|
|
|
15,082,884 |
|
|
|
8,754,869 |
|
|
|||||
Allowance for credit losses |
|
(266,999 |
) |
|
|
(268,018 |
) |
|
|
(282,503 |
) |
|
|
(282,271 |
) |
|
|
(115,422 |
) |
|
|||||
Loans held for investment, net |
|
12,850,393 |
|
|
|
12,968,415 |
|
|
|
13,168,337 |
|
|
|
14,800,613 |
|
|
|
8,639,447 |
|
|
|||||
Accrued interest receivable |
|
65,098 |
|
|
|
74,574 |
|
|
|
73,112 |
|
|
|
78,408 |
|
|
|
38,294 |
|
|
|||||
Other real estate owned |
|
— |
|
|
|
— |
|
|
|
334 |
|
|
|
386 |
|
|
|
441 |
|
|
|||||
Premises and equipment |
|
76,329 |
|
|
|
78,884 |
|
|
|
80,326 |
|
|
|
76,542 |
|
|
|
61,615 |
|
|
|||||
Deferred income taxes, net |
|
104,450 |
|
|
|
89,056 |
|
|
|
108,050 |
|
|
|
105,859 |
|
|
|
15,249 |
|
|
|||||
Bank owned life insurance |
|
292,932 |
|
|
|
292,564 |
|
|
|
290,875 |
|
|
|
305,901 |
|
|
|
113,461 |
|
|
|||||
Intangible assets |
|
81,364 |
|
|
|
85,507 |
|
|
|
90,012 |
|
|
|
94,550 |
|
|
|
79,349 |
|
|
|||||
Goodwill |
|
900,204 |
|
|
|
898,569 |
|
|
|
898,434 |
|
|
|
901,166 |
|
|
|
808,322 |
|
|
|||||
Other assets |
|
240,730 |
|
|
|
292,861 |
|
|
|
282,276 |
|
|
|
344,786 |
|
|
|
218,008 |
|
|
|||||
Total assets |
|
$ |
20,173,298 |
|
|
|
$ |
19,736,544 |
|
|
|
$ |
19,844,240 |
|
|
|
$ |
20,517,074 |
|
|
|
$ |
11,976,209 |
|
|
LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Deposit accounts: |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Noninterest-bearing checking |
|
$ |
6,302,703 |
|
|
|
$ |
6,011,106 |
|
|
|
$ |
5,895,744 |
|
|
|
$ |
5,899,442 |
|
|
|
$ |
3,943,260 |
|
|
Interest-bearing: |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Checking |
|
3,155,071 |
|
|
|
2,913,260 |
|
|
|
2,937,910 |
|
|
|
3,098,454 |
|
|
|
577,966 |
|
|
|||||
Money market/savings |
|
5,911,417 |
|
|
|
5,662,969 |
|
|
|
5,778,688 |
|
|
|
6,060,031 |
|
|
|
3,499,305 |
|
|
|||||
Retail certificates of deposit |
|
1,353,431 |
|
|
|
1,471,512 |
|
|
|
1,542,029 |
|
|
|
1,651,976 |
|
|
|
897,680 |
|
|
|||||
Wholesale/brokered certificates of deposit |
|
17,385 |
|
|
|
155,330 |
|
|
|
176,436 |
|
|
|
266,790 |
|
|
|
174,861 |
|
|
|||||
Total interest-bearing |
|
10,437,304 |
|
|
|
10,203,071 |
|
|
|
10,435,063 |
|
|
|
11,077,251 |
|
|
|
5,149,812 |
|
|
|||||
Total deposits |
|
16,740,007 |
|
|
|
16,214,177 |
|
|
|
16,330,807 |
|
|
|
16,976,693 |
|
|
|
9,093,072 |
|
|
|||||
FHLB advances and other borrowings |
|
10,000 |
|
|
|
31,000 |
|
|
|
41,000 |
|
|
|
41,006 |
|
|
|
521,017 |
|
|
|||||
Subordinated debentures |
|
501,611 |
|
|
|
501,511 |
|
|
|
501,443 |
|
|
|
501,375 |
|
|
|
215,269 |
|
|
|||||
Accrued expenses and other liabilities |
|
218,582 |
|
|
|
243,207 |
|
|
|
282,905 |
|
|
|
343,353 |
|
|
|
143,934 |
|
|
|||||
Total liabilities |
|
17,470,200 |
|
|
|
16,989,895 |
|
|
|
17,156,155 |
|
|
|
17,862,427 |
|
|
|
9,973,292 |
|
|
|||||
STOCKHOLDERS’ EQUITY: |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Common stock |
|
931 |
|
|
|
931 |
|
|
|
930 |
|
|
|
930 |
|
|
|
586 |
|
|
|||||
Additional paid-in capital |
|
{
"@context": "https://schema.org",
"@type": "FAQPage",
"name": "Pacific Premier Bancorp, Inc. Announces First Quarter 2021 Financial Results and Increases Quarterly Cash Dividend to $0.33 per Share FAQs",
"mainEntity": [
{
"@type": "Question",
"name": "What was Pacific Premier Bancorp's net income for Q1 2021?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Pacific Premier Bancorp reported a net income of $68.7 million for Q1 2021."
}
},
{
"@type": "Question",
"name": "How much did Pacific Premier increase its common stock dividend?",
"acceptedAnswer": {
"@type": "Answer",
"text": "The common stock dividend was increased to $0.33 per share from $0.30 per share."
}
},
{
"@type": "Question",
"name": "What were the total assets of Pacific Premier as of March 31, 2021?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Total assets reached $20.17 billion as of March 31, 2021."
}
},
{
"@type": "Question",
"name": "How much new loan production did Pacific Premier generate in Q1 2021?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Pacific Premier generated more than $1.15 billion in new loan commitments in Q1 2021."
}
}
]
}
FAQ
What was Pacific Premier Bancorp's net income for Q1 2021?
Pacific Premier Bancorp reported a net income of $68.7 million for Q1 2021.
How much did Pacific Premier increase its common stock dividend?
The common stock dividend was increased to $0.33 per share from $0.30 per share.
What were the total assets of Pacific Premier as of March 31, 2021?
Total assets reached $20.17 billion as of March 31, 2021.
How much new loan production did Pacific Premier generate in Q1 2021?
Pacific Premier generated more than $1.15 billion in new loan commitments in Q1 2021.
Pacific Premier Bancorp Inc
NASDAQ:PPBIPPBI RankingsPPBI Latest NewsPPBI Stock Data
2.63B
96.44M
1.9%
95.84%
2.11%
Banks - Regional
State Commercial Banks
United States of America
IRVINE
| |||||||||||||||||||||||