Date of Report (Date of earliest event reported) | October 24, 2017 | |||
PACIFIC PREMIER BANCORP, INC. | ||||
(Exact name of registrant as specified in its charter) | ||||
DELAWARE | 0-22193 | 33-0743196 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||
17901 Von Karman Avenue, Suite 1200, Irvine, CA | 92,614 | |||
(Address of principal executive offices) | (Zip Code) | |||
Registrant’s telephone number, including area code | (949) 864-8000 | |||
Not Applicable | ||||
(Former name or former address, if changed since last report.) | ||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): | ||||
[x] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Press Release dated October 24, 2017 with respect to the Registrant's unaudited financial results for the third quarter and year-to-date ended September 30, 2017. |
PACIFIC PREMIER BANCORP, INC. | |||
Dated: | October 24, 2017 | By: | /s/ STEVEN R. GARDNER |
Steven R. Gardner | |||
Chairman, President & Chief Executive Officer |
• | Net income of $20.2 million, an increase of $6.1 million, or 43%, over the prior quarter |
• | Diluted earnings per share of $0.50 |
• | ROAA and ROATCE of 1.26% and 15.02%, respectively |
• | Efficiency ratio of 52% |
• | Received all regulatory and shareholder approvals to acquire Plaza Bancorp |
• | Tangible book value per share of $14.35, an increase of 17.4% over the third quarter of 2016 |
• | New loan originations of $558 million, 6th consecutive quarterly increase |
• | Noninterest-bearing deposits account for 38% of total deposits |
Three Months Ended | ||||||||||||
September 30, | June 30, | September 30, | ||||||||||
2017 | 2017 | 2016 | ||||||||||
Financial Highlights | (dollars in thousands, except per share data) | |||||||||||
Net income | $ | 20,232 | $ | 14,176 | $ | 9,227 | ||||||
Diluted earnings per share | $ | 0.50 | $ | 0.35 | $ | 0.33 | ||||||
Return on average assets | 1.26 | % | 0.89 | % | 1.00 | % | ||||||
Return on average tangible common equity (1) | 15.02 | % | 11.33 | % | 11.35 | % | ||||||
Net interest margin | 4.34 | % | 4.40 | % | 4.41 | % | ||||||
Cost of deposits | 0.28 | % | 0.25 | % | 0.28 | % | ||||||
Efficiency ratio (2) | 52.1 | % | 52.3 | % | 57.0 | % | ||||||
Total assets | $ | 6,532,334 | $ | 6,440,631 | $ | 3,754,831 | ||||||
Tangible book value per share (1) | $ | 14.35 | $ | 13.83 | $ | 12.22 | ||||||
(1) A reconciliation of the non-GAAP measures of average tangible common equity and tangible book value per share to the GAAP measures of common stockholders' equity and book value are set forth at the end of this press release. | ||||||||||||
(2) Represents the ratio of noninterest expense less other real estate owned operations, core deposit intangible amortization and merger-related expense to the sum of net interest income before provision for loan losses and total noninterest income, less gains/(loss) on sale of securities and other-than-temporary impairment recovery/(loss) on investment securities. |
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||
CONSOLIDATED AVERAGE BALANCES AND YIELD DATA | |||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
September 30, 2017 | June 30, 2017 | September 30, 2016 | |||||||||||||||||||||||||||||||
Average Balance | Interest Income/Expense | Average Yield/ Cost | Average Balance | Interest Income/Expense | Average Yield/ Cost | Average Balance | Interest Income/Expense | Average Yield/ Cost | |||||||||||||||||||||||||
Assets | (dollars in thousands) | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 167,745 | $ | 265 | 0.63 | % | $ | 133,127 | $ | 160 | 0.48 | % | $ | 201,140 | $ | 232 | 0.46 | % | |||||||||||||||
Investment securities | 765,537 | 4,981 | 2.60 | 829,380 | 5,019 | 2.42 | 316,253 | 1,710 | 2.16 | ||||||||||||||||||||||||
Loans receivable, net (1) | 4,937,979 | 64,915 | 5.22 | 4,815,612 | 63,554 | 5.29 | 2,998,153 | 40,487 | 5.37 | ||||||||||||||||||||||||
Total interest-earning assets | $ | 5,871,261 | $ | 70,161 | 4.74 | % | $ | 5,778,119 | $ | 68,733 | 4.77 | % | $ | 3,515,546 | $ | 42,429 | 4.80 | % | |||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
Interest-bearing deposits | $ | 3,147,320 | $ | 3,557 | 0.45 | % | $ | 3,107,842 | $ | 3,081 | 0.40 | % | $ | 1,921,740 | $ | 2,136 | 0.44 | % | |||||||||||||||
Borrowings | 399,206 | 2,313 | 2.30 | 464,845 | 2,314 | 2.00 | 166,881 | 1,284 | 3.06 | ||||||||||||||||||||||||
Total interest-bearing liabilities | $ | 3,546,526 | $ | 5,870 | 0.66 | % | $ | 3,572,687 | $ | 5,395 | 0.61 | % | $ | 2,088,621 | $ | 3,420 | 0.65 | % | |||||||||||||||
Noninterest-bearing deposits | $ | 1,860,177 | $ | 1,802,752 | $ | 1,134,318 | |||||||||||||||||||||||||||
Net interest income | $ | 64,291 | $ | 63,338 | $ | 39,009 | |||||||||||||||||||||||||||
Net interest margin (2) | 4.34 | % | 4.40 | % | 4.41 | % | |||||||||||||||||||||||||||
(1) Average balance includes nonperforming loans and is net of deferred loan origination fees/costs and unamortized discounts/premiums. | |||||||||||||||||||||||||||||||||
(2) Represents net interest income divided by average interest-earning assets. |
Three Months Ended | ||||||||||||
September 30, | June 30, | September 30, | ||||||||||
2017 | 2017 | 2016 | ||||||||||
NONINTEREST INCOME | (dollars in thousands) | |||||||||||
Loan servicing fees | $ | 276 | $ | 143 | $ | 288 | ||||||
Deposit fees | 1,117 | 986 | 422 | |||||||||
Net gain from sales of loans | 3,439 | 2,887 | 3,122 | |||||||||
Net gain from sales of investment securities | 896 | 2,093 | 512 | |||||||||
Net gain from other real estate owned | — | 94 | — | |||||||||
Other income | 2,493 | 2,556 | 1,624 | |||||||||
Total noninterest income | $ | 8,221 | $ | 8,759 | $ | 5,968 |
Three Months Ended | ||||||||||||
September 30, | June 30, | September 30, | ||||||||||
2017 | 2017 | 2016 | ||||||||||
NONINTEREST EXPENSE | (dollars in thousands) | |||||||||||
Compensation and benefits | $ | 21,707 | $ | 21,625 | $ | 14,181 | ||||||
Premises and occupancy | 4,016 | 3,733 | 2,576 | |||||||||
Data processing | 2,082 | 2,439 | 1,223 | |||||||||
Other real estate owned operations, net | 3 | 44 | 5 | |||||||||
FDIC insurance premiums | 379 | 818 | 442 | |||||||||
Legal, audit and professional expense | 1,978 | 1,281 | 737 | |||||||||
Marketing expense | 1,248 | 1,006 | 1,683 | |||||||||
Office, telecommunications and postage expense | 835 | 922 | 612 | |||||||||
Loan expense | 1,017 | 1,068 | 534 | |||||||||
Deposit expense | 1,655 | 1,663 | 1,315 | |||||||||
Merger-related expense | 503 | 10,117 | — | |||||||||
CDI amortization | 1,761 | 1,761 | 525 | |||||||||
Other expense | 2,428 | 2,019 | 2,027 | |||||||||
Total noninterest expense | $ | 39,612 | $ | 48,496 | $ | 25,860 |
September 30, | June 30, | September 30, | ||||||||||
2017 | 2017 | 2016 | ||||||||||
(dollars in thousands) | ||||||||||||
Business loans: | ||||||||||||
Commercial and industrial | $ | 763,091 | $ | 733,852 | $ | 537,809 | ||||||
Franchise | 626,508 | 565,415 | 431,618 | |||||||||
Commercial owner occupied | 805,137 | 729,476 | 460,068 | |||||||||
SBA | 107,211 | 101,384 | 83,186 | |||||||||
Agriculture | 86,466 | 98,842 | — | |||||||||
Total business loans | 2,388,413 | 2,228,969 | 1,512,681 | |||||||||
Real estate loans: | ||||||||||||
Commercial non-owner occupied | 1,098,995 | 1,095,184 | 527,412 | |||||||||
Multi-family | 797,370 | 746,547 | 689,813 | |||||||||
One-to-four family | 246,248 | 322,048 | 101,377 | |||||||||
Construction | 301,334 | 289,600 | 231,098 | |||||||||
Farmland | 140,581 | 136,587 | — | |||||||||
Land | 30,719 | 31,799 | 18,472 | |||||||||
Other loans | 6,228 | 7,309 | 5,678 | |||||||||
Total real estate loans | 2,621,475 | 2,629,074 | 1,573,850 | |||||||||
Gross loans held for investment | 5,009,888 | 4,858,043 | 3,086,531 | |||||||||
Plus: Deferred loan origination costs/(fees) and premiums/(discounts), net | (571 | ) | 568 | 4,308 | ||||||||
Loans held for investment | 5,009,317 | 4,858,611 | 3,090,839 | |||||||||
Allowance for loan losses | (27,143 | ) | (25,055 | ) | (21,843 | ) | ||||||
Loans held for investment, net | $ | 4,982,174 | $ | 4,833,556 | $ | 3,068,996 | ||||||
Loans held for sale, at lower of cost or fair value | $ | 44,343 | $ | 6,840 | $ | 9,009 |
September 30, | June 30, | September 30, | ||||||||||
2017 | 2017 | 2016 | ||||||||||
Asset Quality | (dollars in thousands) | |||||||||||
Nonaccrual loans | $ | 515 | $ | 395 | $ | 5,734 | ||||||
Other real estate owned | 372 | 372 | 711 | |||||||||
Nonperforming assets | $ | 887 | $ | 767 | $ | 6,445 | ||||||
Allowance for loan losses | $ | 27,143 | $ | 25,055 | $ | 21,843 | ||||||
Allowance for loan losses as a percent of total nonperforming loans | 5,270 | % | 6,343 | % | 381 | % | ||||||
Nonperforming loans as a percent of loans held for investment | 0.01 | % | 0.01 | % | 0.19 | % | ||||||
Nonperforming assets as a percent of total assets | 0.01 | % | 0.01 | % | 0.17 | % | ||||||
Net loan (recoveries) charge-offs for the quarter ended | $ | (38 | ) | $ | (76 | ) | $ | 1,125 | ||||
Net loan (recoveries) charge-offs for quarter to average total loans | — | % | — | % | 0.04 | % | ||||||
Allowance for loan losses to loans held for investment (1) | 0.54 | % | 0.52 | % | 0.71 | % | ||||||
Delinquent Loans: | ||||||||||||
30 - 59 days | $ | 556 | $ | 600 | $ | 1,042 | ||||||
60 - 89 days | 1,423 | 1,965 | 1,990 | |||||||||
90+ days | 1,629 | 454 | 2,646 | |||||||||
Total delinquency | $ | 3,608 | $ | 3,019 | $ | 5,678 | ||||||
Delinquency as a % of loans held for investment | 0.07 | % | 0.06 | % | 0.18 | % | ||||||
(1) 31% of loans held for investment include a fair value discount of $21.6 million. |
September 30, | June 30, | September 30, | ||||||||||
2017 | 2017 | 2016 | ||||||||||
Deposit Accounts | (dollars in thousands) | |||||||||||
Noninterest-bearing checking | $ | 1,890,241 | $ | 1,810,047 | $ | 1,160,394 | ||||||
Interest-bearing: | ||||||||||||
Checking | 304,295 | 323,818 | 181,534 | |||||||||
Money market/savings | 2,009,781 | 2,006,131 | 1,145,609 | |||||||||
Retail certificates of deposit | 573,652 | 572,523 | 384,083 | |||||||||
Wholesale/brokered certificates of deposit | 240,184 | 233,912 | 188,132 | |||||||||
Total interest-bearing | 3,127,912 | 3,136,384 | 1,899,358 | |||||||||
Total deposits | $ | 5,018,153 | $ | 4,946,431 | $ | 3,059,752 | ||||||
Cost of deposits | 0.28 | % | 0.25 | % | 0.28 | % | ||||||
Noninterest-bearing deposits as a percent of total deposits | 38 | % | 37 | % | 38 | % | ||||||
Non-maturity deposits as a percent of total deposits | 84 | % | 84 | % | 81 | % |
September 30, | June 30, | September 30, | ||||||||||
Capital Ratios | 2017 | 2017 | 2016 | |||||||||
Pacific Premier Bancorp, Inc. Consolidated | ||||||||||||
Tier 1 leverage ratio | 9.95 | % | 9.85 | % | 9.80 | % | ||||||
Common equity tier 1 risk-based capital ratio | 10.55 | % | 10.71 | % | 10.36 | % | ||||||
Tier 1 risk-based capital ratio | 10.72 | % | 11.08 | % | 10.66 | % | ||||||
Total risk-based capital ratio | 12.28 | % | 12.69 | % | 13.14 | % | ||||||
Tangible common equity ratio (1) | 9.41 | % | 9.18 | % | 9.28 | % | ||||||
Pacific Premier Bank | ||||||||||||
Tier 1 leverage ratio | 10.91 | % | 10.54 | % | 11.03 | % | ||||||
Common equity tier 1 risk-based capital ratio | 11.76 | % | 11.85 | % | 12.01 | % | ||||||
Tier 1 risk-based capital ratio | 11.76 | % | 11.85 | % | 12.01 | % | ||||||
Total risk-based capital ratio | 12.26 | % | 12.35 | % | 12.70 | % | ||||||
Share Data | ||||||||||||
Book value per share | $ | 24.44 | $ | 23.96 | $ | 16.27 | ||||||
Shares issued and outstanding | 40,162,026 | 40,048,758 | 27,656,533 | |||||||||
Tangible book value per share (1) | $ | 14.35 | $ | 13.83 | $ | 12.22 | ||||||
Closing stock price | $ | 37.75 | $ | 36.90 | $ | 26.46 | ||||||
Market Capitalization (2) | $ | 1,516,116 | $ | 1,477,759 | $ | 731,792 | ||||||
(1) A reconciliation of the non-GAAP measures of tangible common equity and tangible book value per share to the GAAP measures of common stockholders' equity and book value per share is set forth below. | ||||||||||||
(2) Dollars in thousands |
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
ASSETS | 2017 | 2017 | 2017 | 2016 | 2016 | |||||||||||||||
Cash and due from banks | $ | 35,713 | $ | 35,686 | $ | 13,425 | $ | 14,706 | $ | 18,543 | ||||||||||
Interest-bearing deposits with financial institutions | 85,649 | 193,595 | 87,088 | 142,151 | 85,361 | |||||||||||||||
Cash and cash equivalents | 121,362 | 229,281 | 100,513 | 156,857 | 103,904 | |||||||||||||||
Interest-bearing time deposits with financial institutions | 4,437 | 3,944 | 3,944 | 3,944 | 3,944 | |||||||||||||||
Investments held-to-maturity, at amortized cost | 18,627 | 7,750 | 8,272 | 8,565 | 8,900 | |||||||||||||||
Investment securities available-for-sale, at fair value | 703,944 | 703,083 | 435,408 | 380,963 | 313,200 | |||||||||||||||
FHLB, FRB and other stock, at cost | 58,344 | 56,612 | 37,811 | 37,304 | 29,966 | |||||||||||||||
Loans held for sale, at lower of cost or fair value | 44,343 | 6,840 | 11,090 | 7,711 | 9,009 | |||||||||||||||
Loans held for investment | 5,009,317 | 4,858,611 | 3,385,697 | 3,241,613 | 3,090,839 | |||||||||||||||
Allowance for loan losses | (27,143 | ) | (25,055 | ) | (23,075 | ) | (21,296 | ) | (21,843 | ) | ||||||||||
Loans held for investment, net | 4,982,174 | 4,833,556 | 3,362,622 | 3,220,317 | 3,068,996 | |||||||||||||||
Accrued interest receivable | 20,527 | 20,607 | 13,366 | 13,145 | 11,642 | |||||||||||||||
Other real estate owned | 372 | 372 | 460 | 460 | 711 | |||||||||||||||
Premises and equipment | 45,725 | 45,342 | 11,799 | 12,014 | 11,314 | |||||||||||||||
Deferred income taxes, net | 22,023 | 22,201 | 12,744 | 16,807 | 20,001 | |||||||||||||||
Bank owned life insurance | 75,482 | 74,982 | 40,696 | 40,409 | 40,116 | |||||||||||||||
Intangible assets | 33,545 | 35,305 | 8,942 | 9,451 | 9,976 | |||||||||||||||
Goodwill | 371,677 | 370,564 | 102,490 | 102,490 | 101,939 | |||||||||||||||
Other assets | 29,752 | 30,192 | 24,271 | 25,874 | 21,213 | |||||||||||||||
Total Assets | $ | 6,532,334 | $ | 6,440,631 | $ | 4,174,428 | $ | 4,036,311 | $ | 3,754,831 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
LIABILITIES: | ||||||||||||||||||||
Deposit accounts: | ||||||||||||||||||||
Noninterest-bearing checking | $ | 1,890,241 | $ | 1,810,047 | $ | 1,232,578 | $ | 1,185,768 | $ | 1,160,394 | ||||||||||
Interest-bearing: | ||||||||||||||||||||
Checking | 304,295 | 323,818 | 191,399 | 182,893 | 181,534 | |||||||||||||||
Money market/savings | 2,009,781 | 2,006,131 | 1,273,917 | 1,202,361 | 1,145,609 | |||||||||||||||
Retail certificates of deposit | 573,652 | 572,523 | 381,738 | 375,203 | 384,083 | |||||||||||||||
Wholesale/brokered certificates of deposit | 240,184 | 233,912 | 217,441 | 199,356 | 188,132 | |||||||||||||||
Total interest-bearing | 3,127,912 | 3,136,384 | 2,064,495 | 1,959,813 | 1,899,358 | |||||||||||||||
Total deposits | 5,018,153 | 4,946,431 | 3,297,073 | 3,145,581 | 3,059,752 | |||||||||||||||
FHLB advances and other borrowings | 382,173 | 397,267 | 311,363 | 327,971 | 136,213 | |||||||||||||||
Subordinated debentures | 79,871 | 79,800 | 69,413 | 69,383 | 69,353 | |||||||||||||||
Accrued expenses and other liabilities | 70,477 | 57,402 | 25,554 | 33,636 | 39,548 | |||||||||||||||
Total Liabilities | 5,550,674 | 5,480,900 | 3,703,403 | 3,576,571 | 3,304,866 | |||||||||||||||
STOCKHOLDERS’ EQUITY: | ||||||||||||||||||||
Common stock | 397 | 396 | 275 | 274 | 273 | |||||||||||||||
Additional paid-in capital | 817,809 | 815,329 | 345,888 | 345,138 | 343,231 | |||||||||||||||
Retained earnings | 160,978 | 140,746 | 126,570 | 117,049 | 105,098 | |||||||||||||||
Accumulated other comprehensive income (loss), net of tax (benefit) | 2,476 | 3,260 | (1,708 | ) | (2,721 | ) | 1,363 | |||||||||||||
Total Stockholders' Equity | 981,660 | 959,731 | 471,025 | 459,740 | 449,965 | |||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 6,532,334 | $ | 6,440,631 | $ | 4,174,428 | $ | 4,036,311 | $ | 3,754,831 |
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
2017 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||
INTEREST INCOME | ||||||||||||||||||||
Loans | $ | 64,915 | $ | 63,554 | $ | 40,487 | $ | 170,905 | $ | 114,929 | ||||||||||
Investment securities and other interest-earning assets | 5,246 | 5,179 | 1,942 | 13,416 | 5,879 | |||||||||||||||
Total interest income | 70,161 | 68,733 | 42,429 | 184,321 | 120,808 | |||||||||||||||
INTEREST EXPENSE | ||||||||||||||||||||
Deposits | 3,557 | 3,081 | 2,136 | 8,774 | 6,215 | |||||||||||||||
FHLB advances and other borrowings | 1,162 | 1,175 | 314 | 2,940 | 963 | |||||||||||||||
Subordinated debentures | 1,151 | 1,139 | 970 | 3,275 | 2,859 | |||||||||||||||
Total interest expense | 5,870 | 5,395 | 3,420 | 14,989 | 10,037 | |||||||||||||||
Net interest income before provision for loan losses | 64,291 | 63,338 | 39,009 | 169,332 | 110,771 | |||||||||||||||
Provision for loan losses | 2,049 | 1,904 | 4,013 | 6,455 | 6,722 | |||||||||||||||
Net interest income after provision for loan losses | 62,242 | 61,434 | 34,996 | 162,877 | 104,049 | |||||||||||||||
NONINTEREST INCOME | ||||||||||||||||||||
Loan servicing fees | 276 | 143 | 288 | 641 | 769 | |||||||||||||||
Deposit fees | 1,117 | 986 | 422 | 2,521 | 1,267 | |||||||||||||||
Net gain from sales of loans | 3,439 | 2,887 | 3,122 | 9,137 | 7,152 | |||||||||||||||
Net gain from sales of investment securities | 896 | 2,093 | 512 | 2,989 | 1,797 | |||||||||||||||
Net gain from other real estate owned | — | 94 | — | 94 | 18 | |||||||||||||||
Other income | 2,493 | 2,556 | 1,624 | 6,281 | 4,282 | |||||||||||||||
Total noninterest income | 8,221 | 8,759 | 5,968 | 21,663 | 15,285 | |||||||||||||||
NONINTEREST EXPENSE | ||||||||||||||||||||
Compensation and benefits | 21,707 | 21,625 | 14,181 | 58,218 | 39,018 | |||||||||||||||
Premises and occupancy | 4,016 | 3,733 | 2,576 | 10,202 | 7,306 | |||||||||||||||
Data processing | 2,082 | 2,439 | 1,223 | 5,708 | 3,021 | |||||||||||||||
Other real estate owned operations, net | 3 | 44 | 5 | 59 | 16 | |||||||||||||||
FDIC insurance premiums | 379 | 818 | 442 | 1,652 | 1,225 | |||||||||||||||
Legal, audit and professional expense | 1,978 | 1,281 | 737 | 4,177 | 2,149 | |||||||||||||||
Marketing expense | 1,248 | 1,006 | 1,683 | 3,072 | 3,116 | |||||||||||||||
Office, telecommunications and postage expense | 835 | 922 | 612 | 2,190 | 1,666 | |||||||||||||||
Loan expense | 1,017 | 1,068 | 534 | 2,553 | 1,477 | |||||||||||||||
Deposit expense | 1,655 | 1,663 | 1,315 | 4,762 | 3,516 | |||||||||||||||
Merger-related expense | 503 | 10,117 | — | 15,566 | 3,616 | |||||||||||||||
CDI amortization | 1,761 | 1,761 | 525 | 4,033 | 1,514 | |||||||||||||||
Other expense | 2,428 | 2,019 | 2,027 | 5,663 | 5,565 | |||||||||||||||
Total noninterest expense | 39,612 | 48,496 | 25,860 | 117,855 | 73,205 | |||||||||||||||
Net income before income taxes | 30,851 | 21,697 | 15,104 | 66,685 | 46,129 | |||||||||||||||
Income tax | 10,619 | 7,521 | 5,877 | 22,756 | 17,977 | |||||||||||||||
Net income | $ | 20,232 | $ | 14,176 | $ | 9,227 | $ | 43,929 | $ | 28,152 | ||||||||||
EARNINGS PER SHARE | ||||||||||||||||||||
Basic | $ | 0.51 | $ | 0.36 | $ | 0.34 | $ | 1.23 | $ | 1.05 | ||||||||||
Diluted | $ | 0.50 | $ | 0.35 | $ | 0.33 | $ | 1.20 | $ | 1.03 | ||||||||||
WEIGHTED AVERAGE SHARES OUTSTANDING | ||||||||||||||||||||
Basic | 39,709,565 | 39,586,524 | 27,387,123 | 35,652,626 | 26,776,140 | |||||||||||||||
Diluted | 40,486,114 | 40,394,236 | 27,925,351 | 36,455,945 | 27,245,108 |
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||
CONSOLIDATED AVERAGE BALANCES AND YIELD DATA | |||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
September 30, 2017 | June 30, 2017 | September 30, 2016 | |||||||||||||||||||||||||||||||
Average Balance | Interest Income/Expense | Average Yield/Cost | Average Balance | Interest Income/Expense | Average Yield/Cost | Average Balance | Interest Income/Expense | Average Yield/Cost | |||||||||||||||||||||||||
Assets | (dollars in thousands) | ||||||||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 167,745 | $ | 265 | 0.63 | % | $ | 133,127 | $ | 160 | 0.48 | % | $ | 201,140 | $ | 232 | 0.46 | % | |||||||||||||||
Investment securities | 765,537 | 4,981 | 2.60 | 829,380 | 5,019 | 2.42 | 316,253 | 1,710 | 2.16 | ||||||||||||||||||||||||
Loans receivable, net (1) | 4,937,979 | 64,915 | 5.22 | 4,815,612 | 63,554 | 5.29 | 2,998,153 | 40,487 | 5.37 | ||||||||||||||||||||||||
Total interest-earning assets | 5,871,261 | 70,161 | 4.74 | 5,778,119 | 68,733 | 4.77 | 3,515,546 | 42,429 | 4.80 | ||||||||||||||||||||||||
Noninterest-earning assets | 573,127 | 592,186 | 190,670 | ||||||||||||||||||||||||||||||
Total assets | $ | 6,444,388 | $ | 6,370,305 | $ | 3,706,216 | |||||||||||||||||||||||||||
Liabilities and Equity | |||||||||||||||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||||||||||||||
Interest checking | $ | 318,412 | $ | 103 | 0.13 | $ | 329,450 | $ | 90 | 0.11 | $ | 185,344 | $ | 53 | 0.11 | ||||||||||||||||||
Money market | 1,802,834 | 1,767 | 0.39 | 1,779,013 | 1,582 | 0.36 | 1,036,349 | 923 | 0.35 | ||||||||||||||||||||||||
Savings | 211,404 | 68 | 0.13 | 218,888 | 68 | 0.12 | 98,496 | 38 | 0.15 | ||||||||||||||||||||||||
Retail certificates of deposit | 571,663 | 1,052 | 0.73 | 568,367 | 911 | 0.64 | 402,371 | 745 | 0.74 | ||||||||||||||||||||||||
Wholesale/brokered certificates of deposit | 243,007 | 567 | 0.93 | 212,124 | 430 | 0.81 | 199,180 | 377 | 0.75 | ||||||||||||||||||||||||
Total interest-bearing deposits | 3,147,320 | 3,557 | 0.45 | 3,107,842 | 3,081 | 0.40 | 1,921,740 | 2,136 | 0.44 | ||||||||||||||||||||||||
FHLB advances and other borrowings | 319,373 | 1,162 | 1.44 | 385,088 | 1,175 | 1.22 | 97,547 | 314 | 1.28 | ||||||||||||||||||||||||
Subordinated debentures | 79,833 | 1,151 | 5.77 | 79,757 | 1,139 | 5.71 | 69,334 | 970 | 5.60 | ||||||||||||||||||||||||
Total borrowings | 399,206 | 2,313 | 2.30 | 464,845 | 2,314 | 2.00 | 166,881 | 1,284 | 3.06 | ||||||||||||||||||||||||
Total interest-bearing liabilities | 3,546,526 | 5,870 | 0.66 | 3,572,687 | 5,395 | 0.61 | 2,088,621 | 3,420 | 0.65 | ||||||||||||||||||||||||
Noninterest-bearing deposits | 1,860,177 | 1,802,752 | 1,134,318 | ||||||||||||||||||||||||||||||
Other liabilities | 61,604 | 46,666 | 34,500 | ||||||||||||||||||||||||||||||
Total liabilities | 5,468,307 | 5,422,105 | 3,257,439 | ||||||||||||||||||||||||||||||
Stockholders' equity | 976,081 | 948,200 | 448,777 | ||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 6,444,388 | $ | 6,370,305 | $ | 3,706,216 | |||||||||||||||||||||||||||
Net interest income | $ | 64,291 | $ | 63,338 | $ | 39,009 | |||||||||||||||||||||||||||
Net interest margin (2) | 4.34 | % | 4.40 | % | 4.41 | % | |||||||||||||||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities | 165.55 | % | 161.73 | % | 168.32 | % | |||||||||||||||||||||||||||
(1) Average balance includes nonperforming loans and is net of deferred loan origination fees/costs and unamortized discounts/premiums. | |||||||||||||||||||||||||||||||||
(2) Represents net interest income divided by average interest-earning assets. |
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||
LOAN PORTFOLIO COMPOSITION | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
2017 | 2017 | 2017 | 2016 | 2016 | ||||||||||||||||
Business loans: | ||||||||||||||||||||
Commercial and industrial | $ | 763,091 | $ | 733,852 | $ | 593,457 | $ | 563,169 | $ | 537,809 | ||||||||||
Franchise | 626,508 | 565,415 | 493,158 | 459,421 | 431,618 | |||||||||||||||
Commercial owner occupied | 805,137 | 729,476 | 482,295 | 454,918 | 460,068 | |||||||||||||||
SBA | 107,211 | 101,384 | 96,486 | 88,994 | 83,186 | |||||||||||||||
Agriculture | 86,466 | 98,842 | — | — | — | |||||||||||||||
Total business loans | 2,388,413 | 2,228,969 | 1,665,396 | 1,566,502 | 1,512,681 | |||||||||||||||
Real estate loans: | ||||||||||||||||||||
Commercial non-owner occupied | 1,098,995 | 1,095,184 | 612,444 | 586,975 | 527,412 | |||||||||||||||
Multi-family | 797,370 | 746,547 | 682,237 | 690,955 | 689,813 | |||||||||||||||
One-to-four family | 246,248 | 322,048 | 100,423 | 100,451 | 101,377 | |||||||||||||||
Construction | 301,334 | 289,600 | 298,279 | 269,159 | 231,098 | |||||||||||||||
Farmland | 140,581 | 136,587 | — | — | — | |||||||||||||||
Land | 30,719 | 31,799 | 19,738 | 19,829 | 18,472 | |||||||||||||||
Other loans | 6,228 | 7,309 | 3,930 | 4,112 | 5,678 | |||||||||||||||
Total real estate loans | 2,621,475 | 2,629,074 | 1,717,051 | 1,671,481 | 1,573,850 | |||||||||||||||
Gross loans held for investment | 5,009,888 | 4,858,043 | 3,382,447 | 3,237,983 | 3,086,531 | |||||||||||||||
Plus: Deferred loan origination costs/(fees) and premiums/(discounts), net | (571 | ) | 568 | 3,250 | 3,630 | 4,308 | ||||||||||||||
Loans held for investment | 5,009,317 | 4,858,611 | 3,385,697 | 3,241,613 | 3,090,839 | |||||||||||||||
Allowance for loan losses | (27,143 | ) | (25,055 | ) | (23,075 | ) | (21,296 | ) | (21,843 | ) | ||||||||||
Loans held for investment, net | $ | 4,982,174 | $ | 4,833,556 | $ | 3,362,622 | $ | 3,220,317 | $ | 3,068,996 | ||||||||||
Loans held for sale, at lower of cost or fair value | $ | 44,343 | $ | 6,840 | $ | 11,090 | $ | 7,711 | $ | 9,009 |
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||
ASSET QUALITY INFORMATION | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
2017 | 2017 | 2017 | 2016 | 2016 | ||||||||||||||||
Asset Quality | ||||||||||||||||||||
Nonaccrual loans | $ | 515 | $ | 395 | $ | 513 | $ | 1,141 | $ | 5,734 | ||||||||||
Other real estate owned | 372 | 372 | 460 | 460 | 711 | |||||||||||||||
Nonperforming assets | $ | 887 | $ | 767 | $ | 973 | $ | 1,601 | $ | 6,445 | ||||||||||
Allowance for loan losses | $ | 27,143 | $ | 25,055 | $ | 23,075 | $ | 21,296 | $ | 21,843 | ||||||||||
Allowance for loan losses as a percent of total nonperforming loans | 5,270 | % | 6,343 | % | 4,498 | % | 1,866 | % | 381 | % | ||||||||||
Nonperforming loans as a percent of loans held for investment | 0.01 | % | 0.01 | % | 0.02 | % | 0.04 | % | 0.19 | % | ||||||||||
Nonperforming assets as a percent of total assets | 0.01 | % | 0.01 | % | 0.02 | % | 0.04 | % | 0.17 | % | ||||||||||
Net loan (recoveries) charge-offs for the quarter ended | $ | (38 | ) | $ | (76 | ) | $ | 723 | $ | 2,601 | $ | 1,125 | ||||||||
Net loan (recoveries) charge-offs for quarter to average total loans | — | % | — | % | 0.02 | % | 0.08 | % | 0.04 | % | ||||||||||
Allowance for loan losses to loans held for investment (1) | 0.54 | % | 0.52 | % | 0.68 | % | 0.66 | % | 0.71 | % | ||||||||||
Delinquent Loans: | ||||||||||||||||||||
30 - 59 days | $ | 556 | $ | 600 | $ | 117 | $ | 122 | $ | 1,042 | ||||||||||
60 - 89 days | 1,423 | 1,965 | — | 71 | 1,990 | |||||||||||||||
90+ days | 1,629 | 454 | 360 | 639 | 2,646 | |||||||||||||||
Total delinquency | $ | 3,608 | $ | 3,019 | $ | 477 | $ | 832 | $ | 5,678 | ||||||||||
Delinquency as a percent of loans held for investment | 0.07 | % | 0.06 | % | 0.01 | % | 0.03 | % | 0.18 | % | ||||||||||
(1) 31% of loans held for investment include a fair value discount of $21.6 million. |
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES | ||||||||||||
GAAP RECONCILIATIONS | ||||||||||||
(dollars in thousands, except per share data) | ||||||||||||
For periods presented below, return on average tangible common equity is a non-GAAP financial measure derived from GAAP-based amounts. We calculate these figures by excluding CDI amortization expense and exclude the average CDI and average goodwill from the average stockholders' equity during the period. Management believes that the exclusion of such items from these financial measures provides useful information to an understanding of the operating results of our core business. However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these adjusted measures, this presentation may not be comparable to other similarly titled adjusted measures reported by other companies. | ||||||||||||
Three Months Ended | ||||||||||||
September 30, | June 30, | September 30, | ||||||||||
2017 | 2017 | 2016 | ||||||||||
Net income | $ | 20,232 | $ | 14,176 | $ | 9,227 | ||||||
Plus CDI amortization expense | 1,761 | 1,761 | 525 | |||||||||
Less CDI amortization expense tax adjustment | (606 | ) | (610 | ) | (204 | ) | ||||||
Net income for average tangible common equity | $ | 21,387 | $ | 15,327 | $ | 9,548 | ||||||
Average stockholders' equity | $ | 976,081 | $ | 948,200 | $ | 448,777 | ||||||
Less average CDI | 34,699 | 36,445 | 10,318 | |||||||||
Less average goodwill | 371,651 | 370,564 | 101,939 | |||||||||
Average tangible common equity | $ | 569,731 | $ | 541,191 | $ | 336,520 | ||||||
Return on average equity | 8.29 | % | 5.98 | % | 8.22 | % | ||||||
Return on average tangible common equity | 15.02 | % | 11.33 | % | 11.35 | % |
Tangible common equity to tangible assets (the "tangible common equity ratio") and tangible book value per share are non-GAAP financial measures derived from GAAP-based amounts. We calculate the tangible common equity ratio by excluding the balance of intangible assets from common stockholders' equity and dividing by tangible assets. We calculate tangible book value per share by dividing tangible common equity by common shares outstanding, as compared to book value per share, which we calculate by dividing common stockholders' equity by shares outstanding. We believe that this information is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios. Accordingly, we believe that these non-GAAP financial measures provide information that is important to investors and that is useful in understanding our capital position and ratios. However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these measures, this presentation may not be comparable to other similarly titled measures reported by other companies. | ||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
2017 | 2017 | 2017 | 2016 | 2016 | ||||||||||||||||
Total stockholders' equity | $ | 981,660 | $ | 959,731 | $ | 471,025 | $ | 459,740 | $ | 449,965 | ||||||||||
Less intangible assets | (405,222 | ) | (405,869 | ) | (111,432 | ) | (111,941 | ) | (111,915 | ) | ||||||||||
Tangible common equity | $ | 576,438 | $ | 553,862 | $ | 359,593 | $ | 347,799 | $ | 338,050 | ||||||||||
Book value per share | $ | 24.44 | $ | 23.96 | $ | 16.88 | $ | 16.54 | $ | 16.27 | ||||||||||
Less intangible book value per share | (10.09 | ) | (10.13 | ) | (4.00 | ) | (4.03 | ) | (4.05 | ) | ||||||||||
Tangible book value per share | $ | 14.35 | $ | 13.83 | $ | 12.88 | $ | 12.51 | $ | 12.22 | ||||||||||
Total assets | $ | 6,532,334 | $ | 6,440,631 | $ | 4,174,428 | $ | 4,036,311 | $ | 3,754,831 | ||||||||||
Less intangible assets | (405,222 | ) | (405,869 | ) | (111,432 | ) | (111,941 | ) | (111,915 | ) | ||||||||||
Tangible assets | $ | 6,127,112 | $ | 6,034,762 | $ | 4,062,996 | $ | 3,924,370 | $ | 3,642,916 | ||||||||||
Tangible common equity ratio | 9.41 | % | 9.18 | % | 8.85 | % | 8.86 | % | 9.28 | % |