PPBI - Pacific Premier Bancorp Inc. Announces First Quarter 2021 Financial Results and Increases Quarterly Cash Dividend to $0.33 per Share
First Quarter 2021 Summary
- Net income of $68.7 million, or $0.72 per diluted share
- Return on average assets of 1.37%, return on average equity of 9.99%, and return on average tangible common equity of 16.21%
- Increases common equity quarterly dividend by $0.03 to $0.33 per share
- Net interest margin of 3.55% and core net interest margin of 3.30%
- Cost of deposits of 0.11% in the first quarter compared with 0.14% in the prior quarter
- Non-maturity deposits of $15.4 billion, or 91.8% of total deposits
- Noninterest-bearing deposits represent 37.7% of total deposits
- Nonperforming assets represent 0.19% of total assets
Pacific Premier Bancorp, Inc. (NASDAQ: PPBI) (the “Company” or “Pacific Premier”), the holding company of Pacific Premier Bank (the “Bank”), reported net income of $68.7 million, or $0.72 per diluted share, for the first quarter of 2021, compared with net income of $67.1 million, or $0.71 per diluted share, for the fourth quarter of 2020, and net income of $25.7 million, or $0.43 per diluted share, for the first quarter of 2020.
For the quarter ended March 31, 2021, the Company’s return on average assets (“ROAA”) was 1.37%, return on average equity (“ROAE”) was 9.99%, and return on average tangible common equity (“ROATCE”) was 16.21%, compared to 1.34%, 9.91%, and 16.32%, respectively, for the fourth quarter of 2020 and 0.89%, 5.05%, and 9.96%, respectively, for the first quarter of 2020. Total assets were $20.17 billion at March 31, 2021, compared to $19.74 billion at December 31, 2020, and $11.98 billion at March 31, 2020. A reconciliation of the non-U.S. generally accepted accounting principles (“GAAP”) measure of ROATCE to the GAAP measure of common stockholders' equity is set forth at the end of this press release.
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 $1.15 billion in new loan commitments, an increase of 27% compared to the prior quarter. Our teams are working very well together and they continue to generate larger and more sophisticated banking relationships. We are seeing stronger loan production across all of our primary lines of business, as well as an overall increase in the average rate on new loan commitments.
“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 $0.33 per share, from $0.30 per share in the prior quarter. With our strong capital ratios, we are able to increase the capital returned to our shareholders through the dividend payout, while also being well positioned to support continued organic growth and execute on strategic transactions that we believe would further enhance the value of our franchise,” said Mr. Gardner.
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 $161.7 million in the first quarter of 2021, a decrease of $6.5 million, or 3.9%, from the fourth quarter of 2020. The decrease in net interest income reflected 2 less days of interest, lower average loan balances and yields, and lower accretion income, partially offset by a lower cost of funds driven by lower rates paid on deposits and lower average balances of retail and brokered certificates of deposit.
The net interest margin for the first quarter of 2021 was 3.55%, compared with 3.61% in the prior quarter. Our core net interest margin, which excludes the impact of loan accretion income of $9.9 million, compared to $11.0 million in the prior quarter, certificates of deposit mark-to-market amortization, and other adjustments, decreased 2 basis points to 3.30%, compared to 3.32% in the prior quarter. The decrease was driven by lower average loan yields and the shift in our interest-earning assets mix, partially offset by a lower cost of deposits.
Net interest income for the first quarter of 2021 increased $52.5 million, or 48.1%, compared to the first quarter of 2020. The increase was attributable to an increase in average interest-earning assets of $8.13 billion, which primarily resulted from the acquisition of Opus Bank (“Opus”) in the second quarter of 2020, as well as a higher average investment securities balance and a lower cost of funds, partially offset by lower average loan and investment yields and a higher average balance of deposits.
| 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 $9.9 million, $11.0 million, and $4.1 million, respectively. |
| (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 $2.0 million, an increase of $457,000 from the fourth quarter of 2020, and a decrease of $23.5 million from the first quarter of 2020. The increase from the fourth quarter of 2020 was primarily due to a provision for unfunded commitments of $1.7 million as a result of an increase in outstanding unfunded commitments in the commercial and industrial loan segment. The provision for loan losses for the first quarter of 2021 reflected improved economic conditions, lower loans held for investment, and lower net charge-offs compared to the prior quarter. The provision in the first quarter of 2020 reflected unfavorable changes in economic forecasts related to the onset of the COVID-19 pandemic.
|
|
|
|
| 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 $23.7 million, an increase of $546,000 from the fourth quarter of 2020. The increase was primarily due to $2.3 million of Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) referral fees, partially offset by a $1.0 million decrease in net gain from sales of investment securities.
During the first quarter of 2021, the Bank sold $1.3 million of SBA loans for a net gain of $69,000 and fully charged-off loans for a net gain of $292,000, compared to the sale of $2.1 million of SBA loans and $59.2 million of other loans for net gains of $154,000 and $174,000, respectively, during the fourth quarter of 2020.
During the first quarter of 2021, the Bank sold $175.3 million of investment securities for a net gain of $4.0 million, compared to the sale of $202.6 million of investment securities for a net gain of $5.0 million in the fourth quarter of 2020.
Noninterest income for the first quarter of 2021 increased $9.3 million, or 64.0%, compared to the first quarter of 2020. The increase was primarily due to the addition of $7.2 million of trust custodial account fees and $1.5 million of escrow and exchange fees following the Opus acquisition, a $2.8 million increase in other income primarily due to $2.3 million of SBA PPP referral fees, a $791,000 increase in equity investment income, and an $897,000 increase in earnings on bank-owned life insurance (“BOLI”), partially offset by a $3.7 million decrease in net gain from sales of investment securities and a $410,000 decrease in net gain from the sales of loans.
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 $1.3 million of SBA loans for a net gain of $69,000 and the sale of fully charged-off loans for a net gain of $292,000, compared with the sale of $15.9 million of SBA loans for a net gain of $1.2 million and $23.0 million of other loans for a net loss of $404,000 during the first quarter of 2020.
|
|
|
|
| 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 $92.5 million for the first quarter of 2021, a decrease of $7.5 million compared to the fourth quarter of 2020, primarily due to the decrease of $5.1 million in merger-related expense associated with the Opus acquisition. Excluding merger-related expense, noninterest expense decreased $2.4 million compared to the fourth quarter of 2020, driven primarily by a $1.3 million decrease in premises and occupancy expense, a $1.2 million decrease in deposit expense, as well as other decreases, partially offset by a $663,000 increase in other expense primarily related to higher charitable contributions.
Noninterest expense increased by $25.9 million compared to the first quarter of 2020. Excluding merger-related expense, noninterest expense increased $27.6 million compared to the first quarter of 2020. The increase was primarily due to an $18.2 million increase in compensation and benefits, a $3.8 million increase in premises and occupancy expense, a $2.6 million increase in data processing expense, a $1.2 million increase in other expense, an $814,000 increase in FDIC insurance premiums, an $809,000 increase in legal and professional services, and a $726,000 increase in office expense, all predominately as a result of the additional operations, personnel, branches, and divisions retained with the acquisition of Opus. These increases were partially offset by a $1.1 million decrease in deposit expense.
|
|
|
|
| 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 24.5%, compared with 25.4% for the fourth quarter of 2020 and 18.5% for the first quarter of 2020. The decrease in effective tax rate compared with the prior quarter was primarily due to the excess tax benefit from stock-based compensation recognized in the first quarter. The lower effective tax rate from the first quarter of 2020 was due to tax benefits of $2.6 million associated with net operating loss carryback related to our acquisition of Grandpoint Capital, Inc. in 2018 as a result of Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) that was signed into law on March 27, 2020 in response to the COVID-19 pandemic.
BALANCE SHEET HIGHLIGHTS
Loans
Loans held for investment totaled $13.12 billion at March 31, 2021, a decrease of $119.0 million from December 31, 2020, and an increase of $4.36 billion from March 31, 2020. The decrease from December 31, 2020 was driven by loan maturities and prepayments as well as lower line utilization rates, partially offset by higher funded loans in the first quarter of 2021.
During the first quarter of 2021, the Bank generated $1.15 billion of loan commitments and funded $746.3 million of new loans, compared with $911.3 million in loan commitments and $712.5 million in funded loans for the fourth quarter of 2020, and $443.7 million in loan commitments and $353.9 million in funded loans for the first quarter of 2020. Business line utilization rates decreased to 29.7% at the end of the first quarter of 2021, compared with 36.1% at the end of the fourth quarter of 2020 and 50.6% at the end of first quarter of 2020.
The increase in loans held for investment from March 31, 2020 was primarily due to the acquisition of Opus, which added $5.94 billion in gross loans, or $5.81 billion of loans held for investment after purchase accounting adjustments at the time of acquisition.
At March 31, 2021, the ratio of loans held for investment to total deposits was 78.4%, compared with 81.6% and 96.3% at December 31, 2020 and March 31, 2020, respectively.
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 $103.9 million, $113.8 million, and $35.9 million as of March 31, 2021, December 31, 2020, and March 31, 2020, respectively. |
The total end-of-period weighted average interest rate on loans, excluding fees and discounts, at March 31, 2021 was 4.21%, compared to 4.27% at December 31, 2020 and 4.76% at March 31, 2020. The quarter-over-quarter and year-over-year decreases reflect the impact of lower rates on new originations as well as the repricing of loans as a result of the Federal Reserve Board's federal funds rate decrease in March 2020.
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 3.63% in the first quarter of 2021, compared with 3.55% in the fourth quarter of 2020 and 4.59% in the first quarter of 2020.
Asset Quality and Allowance for Credit Losses
At March 31, 2021, our allowance for credit losses (“ACL”) on loans held for investment was $267.0 million, a slight decrease of $1.0 million from December 31, 2020 and an increase of $151.6 million from March 31, 2020, and continues to reflect the impact of the COVID-19 pandemic and resulting uncertainty in the macroeconomic environment. The slight decrease from December 31, 2020 was driven principally by lower loans held for investment and loan mix. The increase from March 31, 2020 was primarily due to the acquisition of Opus during the second quarter of 2020, which added a Day 1 provision for loan losses of $75.9 million for non-purchased credit deteriorated (“PCD”) loans and $21.2 million for PCD loans, as well as the unfavorable changes in economic forecasts employed in the Company's CECL model related to the COVID-19 pandemic during 2020.
During the first quarter of 2021, the Company incurred $1.3 million of net charge-offs, compared to $6.4 million and $1.3 million during the fourth quarter of 2020 and the first quarter of 2020, respectively.
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 2.04%, compared to 2.02% at December 31, 2020 and 1.32% at March 31, 2020. Under the guidance of ASC 820: Fair Value Measurements and Disclosures , the fair value net discount on loans acquired through total bank acquisitions was $103.9 million, or 0.79% of total loans held for investment, as of March 31, 2021, compared to $113.8 million, or 0.85% of total loans held for investment, as of December 31, 2020, and $35.9 million, or 0.41% of total loans held for investment, as of March 31, 2020.
Nonperforming assets totaled $38.9 million, or 0.19% of total assets, at March 31, 2021, compared with $29.2 million, or 0.15% of total assets, at December 31, 2020 and $21.1 million, or 0.18% of total assets, at March 31, 2020. During the first quarter of 2021, nonperforming loans increased $9.7 million to $38.9 million from December 31, 2020. Total loan delinquencies were $22.6 million, or 0.17% of loans held for investment, at March 31, 2021, compared to $13.3 million, or 0.10% of loans held for investment, at December 31, 2020, and $28.9 million, or 0.33% of loans held for investment, at March 31, 2020.
Classified loans totaled $134.7 million, or 1.03% of loans held for investment, at March 31, 2021, compared with $128.3 million, or 0.97% of loans held for investment, at December 31, 2020, and $54.1 million, or 0.62% of loans held for investment, at March 31, 2020. The year-over-year increase was driven, in part, by the migration to the substandard risk grade of approximately $54.4 million of loans subject to temporary loan modifications during 2020, the addition of classified loans from the Opus acquisition in the second quarter of 2020, as well as the net changes in risk ratings during fiscal 2020.
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 $2.3 million at March 31, 2020.
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 $79.5 million, or 0.60% of loans held for investment, remained within their COVID-19 hardship modification period, of which $20.2 million of loans had migrated to the substandard risk grade. No loans were in-process for potential modification as of December 31, 2020.
|
|
|
|
| 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, 51% of loans held for investment include a fair value net discount of $103.9 million, or 0.79% of loans held for investment. At December 31, 2020, 55% of loans held for investment include a fair value net discount of $113.8 million, or 0.85% of loans held for investment. At March 31, 2020, 34% of loans held for investment include a fair value net discount of $35.9 million, or 0.41% of loans held for investment. |
Investment Securities
Investment securities totaled $3.88 billion at March 31, 2021, a decrease of $75.6 million, or 1.9%, from December 31, 2020, and an increase of $2.51 billion, or 182.7%, from March 31, 2020. The decrease in the first quarter of 2021 compared to the prior quarter was primarily the result of $175.3 million in sales, $170.4 million in principal payments, amortization, and redemptions, and a $105.7 million decrease in mark-to-market fair value adjustment, partially offset by $375.8 million in purchases. The increase in investment securities from March 31, 2020 was primarily the result of $2.99 billion in purchases and $829.9 million of investment securities acquired from Opus, partially offset by $780.4 million in sales, $445.5 million in principal payments, amortization and redemptions, and an $83.5 million decrease in mark-to-market fair value adjustment. The Company’s assessment of held-to-maturity and available-for-sale investment securities indicated that no ACL was required as of March 31, 2021.
Deposits
At March 31, 2021, deposits totaled $16.74 billion, an increase of $525.8 million from December 31, 2020 and an increase of $7.65 billion from March 31, 2020. At March 31, 2021, non-maturity deposits totaled $15.37 billion, or 91.8% of total deposits, an increase of $781.9 million, or 5.4%, from December 31, 2020 and an increase of $7.35 billion, or 91.6%, from March 31, 2020. During the first quarter of 2021, deposit increases included $291.6 million in noninterest-bearing deposits, $248.4 million in money market and savings deposits, and $241.8 million in interest-bearing checking deposits, partially offset by decreases of $118.1 million in retail certificates of deposits and $137.9 million in brokered certificates of deposit as compared to the fourth quarter of 2020. The increase in deposits from March 31, 2020 was primarily due to the acquisition of Opus.
The weighted average cost of deposits for the first quarter of 2021 was 0.11%, compared to 0.14% for the fourth quarter of 2020, and 0.48% for the first quarter of 2020, including the favorable impact of the acquired certificates of deposit mark-to-market amortization. The decrease in the weighted average cost of deposits in the first quarter of 2021 compared to the prior quarters was principally driven by lower pricing across all deposit product categories.
The end of period weighted average rate of deposits at March 31, 2021 was 0.12%.
|
|
|
|
| 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 $250,000. |
Borrowings
At March 31, 2021, total borrowings amounted to $511.6 million, a decrease of $20.9 million from December 31, 2020 and a decrease of $224.7 million from March 31, 2020. Total borrowings at March 31, 2021 included $10.0 million of Federal Home Loan Bank of San Francisco (“FHLB”) advances and $501.6 million of subordinated debt. At March 31, 2021, total borrowings represented 2.5% of total assets, compared to 2.7% and 6.1%, as of December 31, 2020 and March 31, 2020, respectively. The decrease in borrowings at March 31, 2021 as compared to December 31, 2020 was primarily due to lower FHLB advances. The decrease in borrowings at March 31, 2021 as compared to March 31, 2020 was primarily due to lower FHLB advances, partially offset by the issuance in June 2020 of $150 million in aggregate principal amount of the Company's 5.375% Fixed-to-Floating Rate Subordinated Notes due June 15, 2030, as well as the $135 million aggregate principal amount of subordinated notes assumed by the Bank in connection with the acquisition of Opus in the second quarter of 2020.
Capital Ratios
At March 31, 2021, our common stockholder's equity was $2.70 billion, or 13.40% of total assets, compared with $2.75 billion, or 13.92%, at December 31, 2020 and $2.00 billion, or 16.72%, at March 31, 2020, with a book value per share of $28.56, compared with $29.07 at December 31, 2020 and $33.40 at March 31, 2020. At March 31, 2021, our ratio of tangible common equity to total assets was 8.97%, compared with 9.40% at December 31, 2020 and 10.06% at March 31, 2020, with a tangible book value per share of $18.19, compared with $18.65 at December 31, 2020 and $18.60 at March 31, 2020. Reconciliations of the non-GAAP measures of tangible common equity ratio and tangible book value per share to the GAAP measures of common stockholders' equity and book value per share, respectively, are set forth at the end of this press release.
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 9.66%, common equity tier 1 capital ratio of 12.05%, tier 1 capital ratio of 12.05%, and total capital ratio of 16.26%.
At March 31, 2021, the Bank had a tier 1 leverage ratio of 11.13%, common equity tier 1 capital ratio of 13.90%, tier 1 capital ratio of 13.90%, and total capital ratio of 15.92%. These capital ratios exceeded the “well capitalized” standards defined by the federal banking regulators of 5.00% for tier 1 leverage ratio, 6.50% for common equity tier 1 capital ratio, 8.00% for tier 1 capital ratio, and 10.00% for total capital ratio and exceeded the minimum capital ratio levels inclusive of the fully phased-in capital conservation buffer of 7.00%, 8.50%, and 10.50%, respectively.
|
|
|
|
| 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 $0.33 per share dividend, payable on May 14, 2021 to stockholders of record as of May 7, 2021. This represents a $0.03 per share, or 10% increase, compared to the prior quarter’s quarterly dividend rate. On January 11, 2021, the Company’s Board of Directors approved a new stock repurchase program, which authorized the repurchase up to 4,725,000 shares of its common stock. During the first quarter of 2021, the Company repurchased 199,674 shares of common stock at an average price of $34.51 per share with a total market value of $6.9 million under its stock repurchase program.
Subsequent Events
On April 15, 2021, the Company redeemed all three subordinated notes totaling $25.0 million that the Company assumed as part of the acquisition of Plaza Bancorp, Inc. in 2017. Prior to redemption, the subordinated notes carried a fixed interest rate of 7.125% and were scheduled to mature on June 26, 2025. The subordinated notes securities were called at 103% of the principal amount of the notes, plus accrued and unpaid interest, for an aggregate amount of $25.8 million. The Company recorded a loss on early debt extinguishment of $647,000 after considering $103,000 fair value mark related to purchase accounting adjustments.
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 $20 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 approximately 43,000 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, 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 |
|
|
| 2,348,445 |
|
|
|
|
|
|
| 2,354,871 |
|
|
|
|
|
|
| 2,351,532 |
|
|
|
|
|
|
| 2,348,415 |
|
|
|
|
|
|
| 1,596,680 |
|
|
|
|
| Retained earnings |
|
|
| 368,911 |
|
|
|
|
|
|
| 330,555 |
|
|
|
|
|
|
| 289,960 |
|
|
|
|
|
|
| 247,078 |
|
|
|
|
|
|
| 361,242 |
|
|
|
|
| Accumulated other comprehensive (loss) income |
|
|
| (15,189 |
| ) |
|
|
|
|
| 60,292 |
|
|
|
|
|
|
| 45,663 |
|
|
|
|
|
|
| 58,224 |
|
|
|
|
|
|
| 44,409 |
|
|
|
|
| Total stockholders' equity |
|
|
| 2,703,098 |
|
|
|
|
|
|
| 2,746,649 |
|
|
|
|
|
|
| 2,688,085 |
|
|
|
|
|
|
| 2,654,647 |
|
|
|
|
|
|
| 2,002,917 |
|
|
|
|
| Total liabilities and stockholders' equity |
|
|
| $ |
| 20,173,298 |
|
|
|
|
|
|
| $ |
| 19,736,544 |
|
|
|
|
|
|
| $ |
| 19,844,240 |
|
|
|
|
|
|
| $ |
| 20,517,074 |
|
|
|
|
|
|
| $ |
| 11,976,209 |
|
|
|
|
| PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES |
| CONSOLIDATED STATEMENTS OF OPERATIONS |
| (Dollars in thousands, except per share data) |
| (Unaudited) |
|
|
|
|
| Three Months Ended |
|
|
|
|
| March 31, |
|
|
| December 31, |
|
|
| March 31, |
|
|
|
|
| 2021 |
|
|
| 2020 |
|
|
| 2020 |
| INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
| Loans |
|
|
| $ |
| 155,225 |
|
|
|
|
| $ |
| 163,499 |
|
|
|
|
| $ |
| 113,265 |
|
|
| Investment securities and other interest-earning assets |
|
|
| 17,769 |
|
|
|
|
| 17,325 |
|
|
|
|
| 10,524 |
|
|
| Total interest income |
|
|
| 172,994 |
|
|
|
|
| 180,824 |
|
|
|
|
| 123,789 |
|
|
| INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
| Deposits |
|
|
| 4,426 |
|
|
|
|
| 5,685 |
|
|
|
|
| 10,487 |
|
|
| FHLB advances and other borrowings |
|
|
| 65 |
|
|
|
|
| 121 |
|
|
|
|
| 1,081 |
|
|
| Subordinated debentures |
|
|
| 6,851 |
|
|
|
|
| 6,820 |
|
|
|
|
| 3,046 |
|
|
| Total interest expense |
|
|
| 11,342 |
|
|
|
|
| 12,626 |
|
|
|
|
| 14,614 |
|
|
| Net interest income before provision for credit losses |
|
|
| 161,652 |
|
|
|
|
| 168,198 |
|
|
|
|
| 109,175 |
|
|
| Provision for credit losses |
|
|
| 1,974 |
|
|
|
|
| 1,517 |
|
|
|
|
| 25,454 |
|
|
| Net interest income after provision for credit losses |
|
|
| 159,678 |
|
|
|
|
| 166,681 |
|
|
|
|
| 83,721 |
|
|
| NONINTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
| 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 |
|
|
|
|
|
|
|
|
|
|
|
|
| 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 |
|
|
| Net income before income taxes |
|
|
| 90,929 |
|
|
|
|
| 89,936 |
|
|
|
|
| 31,565 |
|
|
| Income tax expense |
|
|
| 22,261 |
|
|
|
|
| 22,800 |
|
|
|
|
| 5,825 |
|
|
| Net income |
|
|
| $ |
| 68,668 |
|
|
|
|
| $ |
| 67,136 |
|
|
|
|
| $ |
| 25,740 |
|
|
| EARNINGS PER SHARE |
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
|
| $ |
| 0.73 |
|
|
|
|
| $ |
| 0.71 |
|
|
|
|
| $ |
| 0.43 |
|
|
| Diluted |
|
|
| $ |
| 0.72 |
|
|
|
|
| $ |
| 0.71 |
|
|
|
|
| $ |
| 0.43 |
|
|
| WEIGHTED AVERAGE SHARES OUTSTANDING |
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
|
| 93,529,147 |
|
|
|
|
| 93,568,994 |
|
|
|
|
| 59,007,191 |
|
|
| Diluted |
|
|
| 94,093,644 |
|
|
|
|
| 93,969,188 |
|
|
|
|
| 59,189,717 |
|
|
| SELECTED FINANCIAL DATA |
| 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 |
|
|
|
|
| Interest-earning 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 |
|
|
| Noninterest-earning assets |
|
|
| 1,503,834 |
|
|
|
|
|
|
|
|
|
|
|
|
| 1,540,456 |
|
|
|
|
|
|
|
|
|
|
|
|
| 1,227,766 |
|
|
|
|
|
|
|
|
|
|
| Total assets |
|
|
| $ |
| 19,994,260 |
|
|
|
|
|
|
|
|
|
|
|
|
| $ |
| 20,059,893 |
|
|
|
|
|
|
|
|
|
|
|
|
| $ |
| 11,591,336 |
|
|
|
|
|
|
|
|
|
|
| Liabilities and Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest checking |
|
|
| $ |
| 3,060,055 |
|
|
|
|
| $ |
| 419 |
|
|
|
|
| 0.06 |
| % |
|
|
| $ |
| 2,971,983 |
|
|
|
|
| $ |
| 652 |
|
|
|
|
| 0.09 |
| % |
|
|
| $ |
| 576,203 |
|
|
|
|
| $ |
| 609 |
|
|
|
|
| 0.43 |
| % |
| Money market |
|
|
| 5,447,909 |
|
|
|
|
| 2,588 |
|
|
|
|
| 0.19 |
|
|
|
|
| 5,368,054 |
|
|
|
|
| 3,296 |
|
|
|
|
| 0.24 |
|
|
|
|
| 3,161,867 |
|
|
|
|
| 6,071 |
|
|
|
|
| 0.77 |
|
|
| Savings |
|
|
| 368,288 |
|
|
|
|
| 82 |
|
|
|
|
| 0.09 |
|
|
|
|
| 360,148 |
|
|
|
|
| 86 |
|
|
|
|
| 0.09 |
|
|
|
|
| 238,848 |
|
|
|
|
| 97 |
|
|
|
|
| 0.16 |
|
|
| Retail certificates of deposit |
|
|
| 1,425,093 |
|
|
|
|
| 1,201 |
|
|
|
|
| 0.34 |
|
|
|
|
| 1,507,959 |
|
|
|
|
| 1,413 |
|
|
|
|
| 0.37 |
|
|
|
|
| 936,489 |
|
|
|
|
| 3,464 |
|
|
|
|
| 1.49 |
|
|
| Wholesale/brokered certificates of deposit |
|
|
| 118,854 |
|
|
|
|
| 136 |
|
|
|
|
| 0.46 |
|
|
|
|
| 176,085 |
|
|
|
|
| 238 |
|
|
|
|
| 0.54 |
|
|
|
|
| 43,432 |
|
|
|
|
| 246 |
|
|
|
|
| 2.28 |
|
|
| Total interest-bearing deposits |
|
|
| 10,420,199 |
|
|
|
|
| 4,426 |
|
|
|
|
| 0.17 |
|
|
|
|
| 10,384,229 |
|
|
|
|
| 5,685 |
|
|
|
|
| 0.22 |
|
|
|
|
| 4,956,839 |
|
|
|
|
| 10,487 |
|
|
|
|
| 0.85 |
|
|
| FHLB advances and other borrowings |
|
|
| 22,012 |
|
|
|
|
| 65 |
|
|
|
|
| 1.20 |
|
|
|
|
| 37,560 |
|
|
|
|
| 121 |
|
|
|
|
| 1.28 |
|
|
|
|
| 337,551 |
|
|
|
|
| 1,081 |
|
|
|
|
| 1.29 |
|
|
| Subordinated debentures |
|
|
| 501,553 |
|
|
|
|
| 6,851 |
|
|
|
|
| 5.46 |
|
|
|
|
| 501,461 |
|
|
|
|
| 6,820 |
|
|
|
|
| 5.44 |
|
|
|
|
| 215,190 |
|
|
|
|
| 3,046 |
|
|
|
|
| 5.66 |
|
|
| Total 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 |
|
|
|
|
|
|
|
|
|
|
| Other liabilities |
|
|
| 266,536 |
|
|
|
|
|
|
|
|
|
|
|
|
| 300,963 |
|
|
|
|
|
|
|
|
|
|
|
|
| 146,231 |
|
|
|
|
|
|
|
|
|
|
| Total liabilities |
|
|
| 17,244,619 |
|
|
|
|
|
|
|
|
|
|
|
|
| 17,349,384 |
|
|
|
|
|
|
|
|
|
|
|
|
| 9,554,210 |
|
|
|
|
|
|
|
|
|
|
| Stockholders' equity |
|
|
| 2,749,641 |
|
|
|
|
|
|
|
|
|
|
|
|
| 2,710,509 |
|
|
|
|
|
|
|
|
|
|
|
|
| 2,037,126 |
|
|
|
|
|
|
|
|
|
|
| Total liabilities and equity |
|
|
| $ |
| 19,994,260 |
|
|
|
|
|
|
|
|
|
|
|
|
| $ |
| 20,059,893 |
|
|
|
|
|
|
|
|
|
|
|
|
| $ |
| 11,591,336 |
|
|
|
|
|
|
|
|
|
|
| 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 $9.9 million, $11.0 million, and $4.1 million, respectively. |
| (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. |
| PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES |
| LOAN PORTFOLIO COMPOSITION |
| (Dollars in thousands) |
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| March 31, |
|
|
| December 31, |
|
|
| September 30, |
|
|
| June 30, |
|
|
| March 31, |
|
|
|
|
| 2021 |
|
|
| 2020 |
|
|
| 2020 |
|
|
| 2020 |
|
|
| 2020 |
| Investor loans secured by real estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CRE non-owner-occupied |
|
|
| $ |
| 2,729,785 |
|
|
|
|
|
|
| $ |
| 2,675,085 |
|
|
|
|
|
|
| $ |
| 2,707,930 |
|
|
|
|
|
|
| $ |
| 2,783,692 |
|
|
|
|
|
|
| $ |
| 2,040,198 |
|
|
|
|
| Multifamily |
|
|
| 5,309,592 |
|
|
|
|
|
|
| 5,171,356 |
|
|
|
|
|
|
| 5,142,069 |
|
|
|
|
|
|
| 5,225,557 |
|
|
|
|
|
|
| 1,625,682 |
|
|
|
|
| Construction and land |
|
|
| 316,458 |
|
|
|
|
|
|
| 321,993 |
|
|
|
|
|
|
| 337,872 |
|
|
|
|
|
|
| 357,426 |
|
|
|
|
|
|
| 377,525 |
|
|
|
|
| SBA secured by real estate (1) |
|
|
| 56,381 |
|
|
|
|
|
|
| 57,331 |
|
|
|
|
|
|
| 57,610 |
|
|
|
|
|
|
| 59,482 |
|
|
|
|
|
|
| 61,665 |
|
|
|
|
| Total investor loans secured by real estate |
|
|
| 8,412,216 |
|
|
|
|
|
|
| 8,225,765 |
|
|
|
|
|
|
| 8,245,481 |
|
|
|
|
|
|
| 8,426,157 |
|
|
|
|
|
|
| 4,105,070 |
|
|
|
|
| Business loans secured by real estate (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CRE owner-occupied |
|
|
| 2,029,984 |
|
|
|
|
|
|
| 2,114,050 |
|
|
|
|
|
|
| 2,119,788 |
|
|
|
|
|
|
| 2,170,154 |
|
|
|
|
|
|
| 1,887,632 |
|
|
|
|
| Franchise real estate secured |
|
|
| 340,805 |
|
|
|
|
|
|
| 347,932 |
|
|
|
|
|
|
| 359,329 |
|
|
|
|
|
|
| 364,647 |
|
|
|
|
|
|
| 371,428 |
|
|
|
|
| SBA secured by real estate (3) |
|
|
| 73,967 |
|
|
|
|
|
|
| 79,595 |
|
|
|
|
|
|
| 84,126 |
|
|
|
|
|
|
| 85,542 |
|
|
|
|
|
|
| 83,640 |
|
|
|
|
| Total business loans secured by real estate |
|
|
| 2,444,756 |
|
|
|
|
|
|
| 2,541,577 |
|
|
|
|
|
|
| 2,563,243 |
|
|
|
|
|
|
| 2,620,343 |
|
|
|
|
|
|
| 2,342,700 |
|
|
|
|
| Commercial loans (4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Commercial and industrial |
|
|
| 1,656,098 |
|
|
|
|
|
|
| 1,768,834 |
|
|
|
|
|
|
| 1,820,995 |
|
|
|
|
|
|
| 2,051,313 |
|
|
|
|
|
|
| 1,458,969 |
|
|
|
|
| Franchise non-real estate secured |
|
|
| 399,041 |
|
|
|
|
|
|
| 444,797 |
|
|
|
|
|
|
| 515,980 |
|
|
|
|
|
|
| 523,755 |
|
|
|
|
|
|
| 547,793 |
|
|
|
|
| SBA non-real estate secured |
|
|
| 14,908 |
|
|
|
|
|
|
| 15,957 |
|
|
|
|
|
|
| 16,748 |
|
|
|
|
|
|
| 21,057 |
|
|
|
|
|
|
| 16,265 |
|
|
|
|
| SBA PPP |
|
|
| — |
|
|
|
|
|
|
| — |
|
|
|
|
|
|
| — |
|
|
|
|
|
|
| 1,128,780 |
|
|
|
|
|
|
| — |
|
|
|
|
| Total commercial loans |
|
|
| 2,070,047 |
|
|
|
|
|
|
| 2,229,588 |
|
|
|
|
|
|
| 2,353,723 |
|
|
|
|
|
|
| 3,724,905 |
|
|
|
|
|
|
| 2,023,027 |
|
|
|
|
| Retail loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Single family residential (5) |
|
|
| 184,049 |
|
|
|
|
|
|
| 232,574 |
|
|
|
|
|
|
| 243,359 |
|
|
|
|
|
|
| 265,170 |
|
|
|
|
|
|
| 237,180 |
|
|
|
|
| Consumer |
|
|
| 6,324 |
|
|
|
|
|
|
| 6,929 |
|
|
|
|
|
|
| 45,034 |
|
|
|
|
|
|
| 46,309 |
|
|
|
|
|
|
| 46,892 |
|
|
|
|
| Total retail loans |
|
|
| 190,373 |
|
|
|
|
|
|
| 239,503 |
|
|
|
|
|
|
| 288,393 |
|
|
|
|
|
|
| 311,479 |
|
|
|
|
|
|
| 284,072 |
|
|
|
|
| Gross loans held for investment (6) |
|
|
| 13,117,392 |
|
|
|
|
|
|
| 13,236,433 |
|
|
|
|
|
|
| 13,450,840 |
|
|
|
|
|
|
| 15,082,884 |
|
|
|
|
|
|
| 8,754,869 |
|
|
|
|
| Allowance for credit losses for loans held for investment |
|
|
| (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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loans held for sale, at lower of cost or fair value |
|
|
| $ |
| 7,311 |
|
|
|
|
|
|
| $ |
| 601 |
|
|
|
|
|
|
| $ |
| 1,032 |
|
|
|
|
|
|
| $ |
| 1,007 |
|
|
|
|
|
|
| $ |
| 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 $103.9 million, $113.8 million, $126.3 million, $144.5 million, and $35.9 million as of March 31, 2021, December 31, 2020, September 30, 2020, June 30, 2020, and March 31, 2020, respectively. |
| PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES |
| ASSET QUALITY INFORMATION |
| (Dollars in thousands) |
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| March 31, |
|
|
| December 31, |
|
|
| September 30, |
|
|
| June 30, |
|
|
| March 31, |
|
|
|
|
| 2021 |
|
|
| 2020 |
|
|
| 2020 |
|
|
| 2020 |
|
|
| 2020 |
| Asset Quality |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Nonperforming loans |
|
|
| $ |
| 38,909 |
|
|
|
|
| $ |
| 29,209 |
|
|
|
|
| $ |
| 27,214 |
|
|
|
|
| $ |
| 33,825 |
|
|
|
|
| $ |
| 20,610 |
|
|
| Other real estate owned |
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| 334 |
|
|
|
|
| 386 |
|
|
|
|
| 441 |
|
|
| Other assets owned |
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
| Nonperforming assets |
|
|
| $ |
| 38,909 |
|
|
|
|
| $ |
| 29,209 |
|
|
|
|
| $ |
| 27,548 |
|
|
|
|
| $ |
| 34,211 |
|
|
|
|
| $ |
| 21,051 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total classified assets (1) |
|
|
| $ |
| 134,667 |
|
|
|
|
| $ |
| 128,332 |
|
|
|
|
| $ |
| 137,042 |
|
|
|
|
| $ |
| 90,334 |
|
|
|
|
| $ |
| 54,586 |
|
|
| Allowance for credit losses |
|
|
| 266,999 |
|
|
|
|
| 268,018 |
|
|
|
|
| 282,503 |
|
|
|
|
| 282,271 |
|
|
|
|
| 115,422 |
|
|
| Allowance for credit losses as a percent of total nonperforming loans |
|
|
| 686 |
| % |
|
|
| 918 |
| % |
|
|
| 1,038 |
| % |
|
|
| 835 |
| % |
|
|
| 560 |
| % |
| Nonperforming loans as a percent of loans held for investment |
|
|
| 0.30 |
|
|
|
|
| 0.22 |
|
|
|
|
| 0.20 |
|
|
|
|
| 0.22 |
|
|
|
|
| 0.24 |
|
|
| Nonperforming assets as a percent of total assets |
|
|
| 0.19 |
|
|
|
|
| 0.15 |
|
|
|
|
| 0.14 |
|
|
|
|
| 0.17 |
|
|
|
|
| 0.18 |
|
|
| Classified loans to total loans held for investment |
|
|
| 1.03 |
|
|
|
|
| 0.97 |
|
|
|
|
| 1.02 |
|
|
|
|
| 0.60 |
|
|
|
|
| 0.62 |
|
|
| Classified assets to total assets |
|
|
| 0.67 |
|
|
|
|
| 0.65 |
|
|
|
|
| 0.69 |
|
|
|
|
| 0.44 |
|
|
|
|
| 0.46 |
|
|
| Net loan charge-offs for the quarter ended |
|
|
| $ |
| 1,334 |
|
|
|
|
| $ |
| 6,406 |
|
|
|
|
| $ |
| 4,470 |
|
|
|
|
| $ |
| 4,650 |
|
|
|
|
| $ |
| 1,344 |
|
|
| Net loan charge-offs for the quarter to average total loans |
|
|
| 0.01 |
| % |
|
|
| 0.05 |
| % |
|
|
| 0.03 |
| % |
|
|
| 0.04 |
| % |
|
|
| 0.02 |
| % |
| Allowance for credit losses to loans held for investment (2) |
|
|
| 2.04 |
|
|
|
|
| 2.02 |
|
|
|
|
| 2.10 |
|
|
|
|
| 1.87 |
|
|
|
|
| 1.32 |
|
|
| Allowance for credit losses to loans held for investment, excluding SBA PPP loans (2) |
|
|
| 2.04 |
|
|
|
|
| 2.02 |
|
|
|
|
| 2.10 |
|
|
|
|
| 2.02 |
|
|
|
|
| 1.32 |
|
|
| Loans modified under the CARES Act |
|
|
| $ |
| — |
|
|
|
|
| $ |
| 79,465 |
|
|
|
|
| $ |
| 118,298 |
|
|
|
|
| $ |
| 2,244,974 |
|
|
|
|
| $ |
| — |
|
|
| Loans modified under the CARES Act as a percent of loans held for investment |
|
|
| — |
| % |
|
|
| 0.60 |
| % |
|
|
| 0.88 |
| % |
|
|
| 14.88 |
| % |
|
|
| — |
| % |
| Delinquent Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 30 - 59 days |
|
|
| $ |
| 13,116 |
|
|
|
|
| $ |
| 1,269 |
|
|
|
|
| $ |
| 7,084 |
|
|
|
|
| $ |
| 6,248 |
|
|
|
|
| $ |
| 8,285 |
|
|
| 60 - 89 days |
|
|
| 61 |
|
|
|
|
| 57 |
|
|
|
|
| 1,086 |
|
|
|
|
| 4,133 |
|
|
|
|
| 1,502 |
|
|
| 90+ days |
|
|
| 9,410 |
|
|
|
|
| 11,996 |
|
|
|
|
| 21,206 |
|
|
|
|
| 27,807 |
|
|
|
|
| 19,084 |
|
|
| Total delinquency |
|
|
| $ |
| 22,587 |
|
|
|
|
| $ |
| 13,322 |
|
|
|
|
| $ |
| 29,376 |
|
|
|
|
| $ |
| 38,188 |
|
|
|
|
| $ |
| 28,871 |
|
|
| Delinquency as a percent of loans held for investment |
|
|
| 0.17 |
| % |
|
|
| 0.10 |
| % |
|
|
| 0.22 |
| % |
|
|
| 0.25 |
| % |
|
|
| 0.33 |
| % |
| ______________________________ |
| (1) |
| Includes substandard loans and other real estate owned. |
| (2) |
| At March 31, 2021, 51% of loans held for investment include a fair value net discount of $103.9 million, or 0.79% of loans held for investment. At December 31, 2020, 55% of loans held for investment include a fair value net discount of $113.8 million, or 0.85% of loans held for investment. At March 31, 2020, 34% of loans held for investment include a fair value net discount of $35.9 million, or 0.41% of loans held for investment. |
| PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES |
| NONACCRUAL LOANS (1) |
| (Dollars in thousands) |
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Collateral Dependent Loans |
|
|
| ACL |
|
|
| Non-Collateral Dependent Loans |
|
|
| ACL |
|
|
| Total Nonaccrual Loans |
|
|
| Nonaccrual Loans With No ACL |
| March 31, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investor loans secured by real estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CRE non-owner-occupied |
|
|
| $ |
| 12,284 |
|
|
|
|
| $ |
| — |
|
|
|
|
| $ |
| — |
|
|
|
|
| $ |
| — |
|
|
|
|
| $ |
| 12,284 |
|
|
|
|
| $ |
| 12,284 |
|
|
| SBA secured by real estate (2) |
|
|
| 440 |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| 440 |
|
|
|
|
| 440 |
|
|
| Total investor loans secured by real estate |
|
|
| 12,724 |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| 12,724 |
|
|
|
|
| 12,724 |
|
|
| Business loans secured by real estate (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CRE owner-occupied |
|
|
| 6,060 |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| 6,060 |
|
|
|
|
| 6,060 |
|
|
| SBA secured by real estate (4) |
|
|
| 727 |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| 727 |
|
|
|
|
| 727 |
|
|
| Total business loans secured by real estate |
|
|
| 6,787 |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| 6,787 |
|
|
|
|
| 6,787 |
|
|
| Commercial loans (5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Commercial and industrial |
|
|
| 1,767 |
|
|
|
|
| — |
|
|
|
|
| 3,843 |
|
|
|
|
| 688 |
|
|
|
|
| 5,610 |
|
|
|
|
| 2,132 |
|
|
| Franchise non-real estate secured |
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| 13,082 |
|
|
|
|
| — |
|
|
|
|
| 13,082 |
|
|
|
|
| 13,082 |
|
|
| SBA not secured by real estate |
|
|
| 692 |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| 692 |
|
|
|
|
| 692 |
|
|
| Total commercial loans |
|
|
| 2,459 |
|
|
|
|
| — |
|
|
|
|
| 16,925 |
|
|
|
|
| 688 |
|
|
|
|
| 19,384 |
|
|
|
|
| 15,906 |
|
|
| Retail Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Single family residential (6) |
|
|
| 14 |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| 14 |
|
|
|
|
| 14 |
|
|
| Total retail loans |
|
|
| 14 |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| 14 |
|
|
|
|
| 14 |
|
|
| Totals nonaccrual loans |
|
|
| $ |
| 21,984 |
|
|
|
|
| $ |
| — |
|
|
|
|
| $ |
| 16,925 |
|
|
|
|
| $ |
| 688 |
|
|
|
|
| $ |
| 38,909 |
|
|
|
|
| $ |
| 35,431 |
|
|
| ______________________________ |
| (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) |
| SBA loans that are collateralized by real property other than hotel/motel real property. |
| (5) |
| Loans to businesses where the operating cash flow of the business is the primary source of repayment. |
| (6) |
| Single family residential includes home equity lines of credit, as well as second trust deeds. |
| PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES |
| PAST DUE STATUS |
| (Dollars in thousands) |
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
| Days Past Due |
|
|
|
|
|
|
|
|
| Current |
|
|
| 30-59 |
|
|
| 60-89 |
|
|
| 90+ |
|
|
| Total |
| March 31, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investor loans secured by real estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CRE non-owner-occupied |
|
|
| $ |
| 2,719,494 |
|
|
|
|
| $ |
| 9,743 |
|
|
|
|
| $ |
| — |
|
|
|
|
| $ |
| 548 |
|
|
|
|
| $ |
| 2,729,785 |
|
|
| Multifamily |
|
|
| 5,309,592 |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| 5,309,592 |
|
|
| Construction and land |
|
|
| 316,458 |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| 316,458 |
|
|
| SBA secured by real estate (1) |
|
|
| 55,941 |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| 440 |
|
|
|
|
| 56,381 |
|
|
| Total investor loans secured by real estate |
|
|
| 8,401,485 |
|
|
|
|
| 9,743 |
|
|
|
|
| — |
|
|
|
|
| 988 |
|
|
|
|
| 8,412,216 |
|
|
| Business loans secured by real estate (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CRE owner-occupied |
|
|
| 2,024,680 |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| 5,304 |
|
|
|
|
| 2,029,984 |
|
|
| Franchise real estate secured |
|
|
| 340,805 |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| 340,805 |
|
|
| SBA secured by real estate (3) |
|
|
| 73,307 |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| 660 |
|
|
|
|
| 73,967 |
|
|
| Total business loans secured by real estate |
|
|
| 2,438,792 |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| 5,964 |
|
|
|
|
| 2,444,756 |
|
|
| Commercial loans (4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Commercial and industrial |
|
|
| 1,651,203 |
|
|
|
|
| 3,068 |
|
|
|
|
| 61 |
|
|
|
|
| 1,766 |
|
|
|
|
| 1,656,098 |
|
|
| Franchise non-real estate secured |
|
|
| 399,041 |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| 399,041 |
|
|
| SBA not secured by real estate |
|
|
| 13,911 |
|
|
|
|
| 305 |
|
|
|
|
| — |
|
|
|
|
| 692 |
|
|
|
|
| 14,908 |
|
|
| Total commercial loans |
|
|
| 2,064,155 |
|
|
|
|
| 3,373 |
|
|
|
|
| 61 |
|
|
|
|
| 2,458 |
|
|
|
|
| 2,070,047 |
|
|
| Retail loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Single family residential (5) |
|
|
| 184,049 |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| 184,049 |
|
|
| Consumer loans |
|
|
| 6,324 |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| 6,324 |
|
|
| Total retail loans |
|
|
| 190,373 |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| 190,373 |
|
|
| Total loans |
|
|
| $ |
| 13,094,805 |
|
|
|
|
| $ |
| 13,116 |
|
|
|
|
| $ |
| 61 |
|
|
|
|
| $ |
| 9,410 |
|
|
|
|
| $ |
| 13,117,392 |
|
|
| ______________________________ |
| (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. |
| PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES |
| CREDIT RISK GRADES |
| (Dollars in thousands) |
| (Unaudited) |
|
|
|
|
|
|
| Pass |
|
|
| Special Mention |
|
|
| Substandard |
|
|
| Total Gross Loans |
| March 31, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investor loans secured by real estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CRE non-owner-occupied |
|
|
| $ |
| 2,641,315 |
|
|
|
|
| $ |
| 54,755 |
|
|
|
|
| $ |
| 33,715 |
|
|
|
|
| $ |
| 2,729,785 |
|
|
| Multifamily |
|
|
| 5,294,583 |
|
|
|
|
| 13,678 |
|
|
|
|
| 1,331 |
|
|
|
|
| 5,309,592 |
|
|
| Construction and land |
|
|
| 316,458 |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| 316,458 |
|
|
| SBA secured by real estate (1) |
|
|
| 44,268 |
|
|
|
|
| 4,818 |
|
|
|
|
| 7,295 |
|
|
|
|
| 56,381 |
|
|
| Total investor loans secured by real estate |
|
|
| 8,296,624 |
|
|
|
|
| 73,251 |
|
|
|
|
| 42,341 |
|
|
|
|
| 8,412,216 |
|
|
| Business loans secured by real estate (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CRE owner-occupied |
|
|
| 1,999,252 |
|
|
|
|
| 13,346 |
|
|
|
|
| 17,386 |
|
|
|
|
| 2,029,984 |
|
|
| Franchise real estate secured |
|
|
| 335,657 |
|
|
|
|
| 5,148 |
|
|
|
|
| — |
|
|
|
|
| 340,805 |
|
|
| SBA secured by real estate (3) |
|
|
| 64,688 |
|
|
|
|
| 2,361 |
|
|
|
|
| 6,918 |
|
|
|
|
| 73,967 |
|
|
| Total business loans secured by real estate |
|
|
| 2,399,597 |
|
|
|
|
| 20,855 |
|
|
|
|
| 24,304 |
|
|
|
|
| 2,444,756 |
|
|
| Commercial loans (4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Commercial and industrial |
|
|
| 1,594,357 |
|
|
|
|
| 20,888 |
|
|
|
|
| 40,853 |
|
|
|
|
| 1,656,098 |
|
|
| Franchise non-real estate secured |
|
|
| 362,447 |
|
|
|
|
| 11,833 |
|
|
|
|
| 24,761 |
|
|
|
|
| 399,041 |
|
|
| SBA not secured by real estate |
|
|
| 11,370 |
|
|
|
|
| 1,456 |
|
|
|
|
| 2,082 |
|
|
|
|
| 14,908 |
|
|
| Total commercial loans |
|
|
| 1,968,174 |
|
|
|
|
| 34,177 |
|
|
|
|
| 67,696 |
|
|
|
|
| 2,070,047 |
|
|
| Retail loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Single family residential (5) |
|
|
| 183,769 |
|
|
|
|
| — |
|
|
|
|
| 280 |
|
|
|
|
| 184,049 |
|
|
| Consumer loans |
|
|
| 6,278 |
|
|
|
|
| — |
|
|
|
|
| 46 |
|
|
|
|
| 6,324 |
|
|
| Total retail loans |
|
|
| 190,047 |
|
|
|
|
| — |
|
|
|
|
| 326 |
|
|
|
|
| 190,373 |
|
|
| Total loans |
|
|
| $ |
| 12,854,442 |
|
|
|
|
| $ |
| 128,283 |
|
|
|
|
| $ |
| 134,667 |
|
|
|
|
| $ |
| 13,117,392 |
|
|
| ______________________________ |
| (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. |
| PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES |
| GAAP RECONCILIATIONS |
| (Dollars in thousands, except per share data) |
| (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 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. |
|
|
|
|
|
|
|
|
|
|
| Three Months Ended |
|
|
|
|
| March 31, |
|
|
| December 31, |
|
|
| March 31, |
|
|
|
|
| 2021 |
|
|
| 2020 |
|
|
| 2020 |
| Net income |
|
|
| $ |
| 68,668 |
|
|
|
|
| $ |
| 67,136 |
|
|
|
|
| $ |
| 25,740 |
|
|
| Plus: amortization of intangible assets expense |
|
|
| 4,143 |
|
|
|
|
| 4,505 |
|
|
|
|
| 3,965 |
|
|
| Less: amortization of intangible assets expense tax adjustment (1) |
|
|
| 1,185 |
|
|
|
|
| 1,288 |
|
|
|
|
| 1,137 |
|
|
| Net income for average tangible common equity |
|
|
| 71,626 |
|
|
|
|
| 70,353 |
|
|
|
|
| 28,568 |
|
|
| Plus: merger-related expense |
|
|
| 5 |
|
|
|
|
| 5,071 |
|
|
|
|
| 1,724 |
|
|
| Less: merger-related expense tax adjustment (1) |
|
|
| 1 |
|
|
|
|
| 1,450 |
|
|
|
|
| 494 |
|
|
| Net income for average tangible common equity excluding merger-related expense |
|
|
| $ |
| 71,630 |
|
|
|
|
| $ |
| 73,974 |
|
|
|
|
| $ |
| 29,798 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average stockholders' equity |
|
|
| $ |
| 2,749,641 |
|
|
|
|
| $ |
| 2,710,509 |
|
|
|
|
| $ |
| 2,037,126 |
|
|
| Less: average intangible assets |
|
|
| 83,946 |
|
|
|
|
| 88,216 |
|
|
|
|
| 81,744 |
|
|
| Less: average goodwill |
|
|
| 898,587 |
|
|
|
|
| 898,436 |
|
|
|
|
| 808,322 |
|
|
| Average tangible common equity |
|
|
| $ |
| 1,767,108 |
|
|
|
|
| $ |
| 1,723,857 |
|
|
|
|
| $ |
| 1,147,060 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on average equity (annualized) |
|
|
| 9.99 |
| % |
|
|
| 9.91 |
| % |
|
|
| 5.05 |
| % |
| Return on average tangible common equity (annualized) |
|
|
| 16.21 |
| % |
|
|
| 16.32 |
| % |
|
|
| 9.96 |
| % |
| Return on average tangible common equity excluding merger-related expense (annualized) |
|
|
| 16.21 |
| % |
|
|
| 17.16 |
| % |
|
|
| 10.39 |
| % |
| ______________________________ |
| (1) |
| Adjusted by statutory tax rate |
| For periods presented below, return on average assets excluding merger-related expense is a non-GAAP financial measure derived from GAAP based amounts. We calculate this figure by excluding merger-related expense and the related tax impact from net income. 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 |
|
|
|
|
| March 31, |
|
|
| December 31, |
|
|
| March 31, |
|
|
|
|
| 2021 |
|
|
| 2020 |
|
|
| 2020 |
| Net income |
|
|
| $ |
| 68,668 |
|
|
|
|
| $ |
| 67,136 |
|
|
|
|
| $ |
| 25,740 |
|
|
| Plus: merger-related expense |
|
|
| 5 |
|
|
|
|
| 5,071 |
|
|
|
|
| 1,724 |
|
|
| Less: merger-related expense tax adjustment (1) |
|
|
| 1 |
|
|
|
|
| 1,450 |
|
|
|
|
| 494 |
|
|
| Net income for average assets excluding merger-related expense |
|
|
| $ |
| 68,672 |
|
|
|
|
| $ |
| 70,757 |
|
|
|
|
| $ |
| 26,970 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average assets |
|
|
| $ |
| 19,994,260 |
|
|
|
|
| $ |
| 20,059,893 |
|
|
|
|
| $ |
| 11,591,336 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on average assets (annualized) |
|
|
| 1.37 |
| % |
|
|
| 1.34 |
| % |
|
|
| 0.89 |
| % |
| Return on average assets excluding merger-related expense (annualized) |
|
|
| 1.37 |
| % |
|
|
| 1.41 |
| % |
|
|
| 0.93 |
| % |
| ______________________________ |
| (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, provision for credit losses, and merger-related expenses from net income. 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 |
|
|
|
|
| March 31, |
|
|
| December 31, |
|
|
| March 31, |
|
|
|
|
| 2021 |
|
|
| 2020 |
|
|
| 2020 |
| Interest income |
|
|
| $ |
| 172,994 |
|
|
|
|
| $ |
| 180,824 |
|
|
|
|
| $ |
| 123,789 |
|
|
| Interest expense |
|
|
| 11,342 |
|
|
|
|
| 12,626 |
|
|
|
|
| 14,614 |
|
|
| Net interest income |
|
|
| 161,652 |
|
|
|
|
| 168,198 |
|
|
|
|
| 109,175 |
|
|
| Noninterest income |
|
|
| 23,740 |
|
|
|
|
| 23,194 |
|
|
|
|
| 14,475 |
|
|
| Revenue |
|
|
| 185,392 |
|
|
|
|
| 191,392 |
|
|
|
|
| 123,650 |
|
|
| Noninterest expense |
|
|
| 92,489 |
|
|
|
|
| 99,939 |
|
|
|
|
| 66,631 |
|
|
| Add: merger-related expense |
|
|
| 5 |
|
|
|
|
| 5,071 |
|
|
|
|
| 1,724 |
|
|
| Pre-provision net revenue |
|
|
| 92,908 |
|
|
|
|
| 96,524 |
|
|
|
|
| 58,743 |
|
|
| Pre-provision net revenue (annualized) |
|
|
| $ |
| 371,632 |
|
|
|
|
| $ |
| 386,096 |
|
|
|
|
| $ |
| 234,972 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average assets |
|
|
| $ |
| 19,994,260 |
|
|
|
|
| $ |
| 20,059,893 |
|
|
|
|
| $ |
| 11,591,336 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Pre-provision net revenue on average assets |
|
|
| 0.46 |
| % |
|
|
| 0.48 |
| % |
|
|
| 0.51 |
| % |
| Pre-provision net revenue on average assets (annualized) |
|
|
| 1.86 |
| % |
|
|
| 1.92 |
| % |
|
|
| 2.03 |
| % |
| Noninterest expense (excluding merger-related expense) as a percent of average assets is a non-GAAP financial measure derived from GAAP-based amounts. We calculate the noninterest expense (excluding merger-related expense) as a percent of average assets by excluding merger-related expenses from the noninterest expense and dividing by average assets. 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 |
|
|
|
|
| March 31, |
|
|
| December 31, |
|
|
| March 31, |
|
|
|
|
| 2021 |
|
|
| 2020 |
|
|
| 2020 |
| Noninterest expense |
|
|
| $ |
| 92,489 |
|
|
|
|
| $ |
| 99,939 |
|
|
|
|
| $ |
| 66,631 |
|
|
| Less: merger-related expense |
|
|
| 5 |
|
|
|
|
| 5,071 |
|
|
|
|
| 1,724 |
|
|
| Noninterest expense excluding merger-related expense |
|
|
| $ |
| 92,484 |
|
|
|
|
| $ |
| 94,868 |
|
|
|
|
| $ |
| 64,907 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average assets |
|
|
| $ |
| 19,994,260 |
|
|
|
|
| $ |
| 20,059,893 |
|
|
|
|
| $ |
| 11,591,336 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Noninterest expense as a percent of average assets (annualized) |
|
|
| 1.85 |
| % |
|
|
| 1.99 |
| % |
|
|
| 2.30 |
| % |
| Noninterest expense excluding merger-related expense as a percent of average assets (annualized) |
|
|
| 1.85 |
| % |
|
|
| 1.89 |
| % |
|
|
| 2.24 |
| % |
| 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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| March 31, |
|
|
| December 31, |
|
|
| September 30, |
|
|
| June 30, |
|
|
| March 31, |
|
|
|
|
| 2021 |
|
|
| 2020 |
|
|
| 2020 |
|
|
| 2020 |
|
|
| 2020 |
| Total stockholders' equity |
|
|
| $ |
| 2,703,098 |
|
|
|
|
| $ |
| 2,746,649 |
|
|
|
|
| $ |
| 2,688,085 |
|
|
|
|
| $ |
| 2,654,647 |
|
|
|
|
| $ |
| 2,002,917 |
|
|
| Less: intangible assets |
|
|
| 981,568 |
|
|
|
|
| 984,076 |
|
|
|
|
| 988,446 |
|
|
|
|
| 995,716 |
|
|
|
|
| 887,671 |
|
|
| Tangible common equity |
|
|
| $ |
| 1,721,530 |
|
|
|
|
| $ |
| 1,762,573 |
|
|
|
|
| $ |
| 1,699,639 |
|
|
|
|
| $ |
| 1,658,931 |
|
|
|
|
| $ |
| 1,115,246 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common shares issued and outstanding |
|
|
| 94,644,415 |
|
|
| 94,483,136 |
|
|
| 94,375,521 |
|
|
| 94,350,902 |
|
|
| 59,975,281 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Book value per share |
|
|
| $ |
| 28.56 |
|
|
|
|
| $ |
| 29.07 |
|
|
|
|
| $ |
| 28.48 |
|
|
|
|
| $ |
| 28.14 |
|
|
|
|
| $ |
| 33.40 |
|
|
| Less: intangible book value per share |
|
|
| 10.37 |
|
|
|
|
| 10.42 |
|
|
|
|
| 10.47 |
|
|
|
|
| 10.55 |
|
|
|
|
| 14.80 |
|
|
| Tangible book value per share |
|
|
| $ |
| 18.19 |
|
|
|
|
| $ |
| 18.65 |
|
|
|
|
| $ |
| 18.01 |
|
|
|
|
| $ |
| 17.58 |
|
|
|
|
| $ |
| 18.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total assets |
|
|
| $ |
| 20,173,298 |
|
|
|
|
| $ |
| 19,736,544 |
|
|
|
|
| $ |
| 19,844,240 |
|
|
|
|
| $ |
| 20,517,074 |
|
|
|
|
| $ |
| 11,976,209 |
|
|
| Less: intangible assets |
|
|
| 981,568 |
|
|
|
|
| 984,076 |
|
|
|
|
| 988,446 |
|
|
|
|
| 995,716 |
|
|
|
|
| 887,671 |
|
|
| Tangible assets |
|
|
| $ |
| 19,191,730 |
|
|
|
|
| $ |
| 18,752,468 |
|
|
|
|
| $ |
| 18,855,794 |
|
|
|
|
| $ |
| 19,521,358 |
|
|
|
|
| $ |
| 11,088,538 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tangible common equity ratio |
|
|
| 8.97 |
| % |
|
|
| 9.40 |
| % |
|
|
| 9.01 |
| % |
|
|
| 8.50 |
| % |
|
|
| 10.06 |
| % |
| Core net interest income and core net interest margin are non-GAAP financial measures derived from GAAP based amounts. We calculate core net interest income by excluding scheduled accretion income, accelerated accretion income, premium amortization on CDs, and nonrecurring nonaccrual interest paid from net interest income. The core net interest margin is calculated as the ratio of core net interest income to average interest-earning assets. 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 |
|
|
|
|
| March 31, |
|
|
| December 31, |
|
|
| March 31, |
|
|
|
|
| 2021 |
|
|
| 2020 |
|
|
| 2020 |
| Net interest income |
|
|
| $ |
| 161,652 |
|
|
|
|
|
|
| $ |
| 168,198 |
|
|
|
|
| $ |
| 109,175 |
|
|
| Less: scheduled accretion income |
|
|
| 3,878 |
|
|
|
|
|
|
| 4,911 |
|
|
|
|
| 1,793 |
|
|
| Less: accelerated accretion income |
|
|
| 5,988 |
|
|
|
|
|
|
| 6,120 |
|
|
|
|
| 2,312 |
|
|
| Less: premium amortization on CD |
|
|
| 1,751 |
|
|
|
|
|
|
| 2,358 |
|
|
|
|
| 63 |
|
|
| Less: nonrecurring nonaccrual interest paid |
|
|
| (603 |
| ) |
|
|
|
|
| 322 |
|
|
|
|
| — |
|
|
| Core net interest income |
|
|
| $ |
| 150,638 |
|
|
|
|
|
|
| $ |
| 154,487 |
|
|
|
|
| $ |
| 105,007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average interest-earning assets |
|
|
| $ |
| 18,490,426 |
|
|
|
|
|
|
| $ |
| 18,519,437 |
|
|
|
|
| $ |
| 10,363,570 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest margin |
|
|
| 3.55 |
| % |
|
|
| 3.61 |
| % |
|
|
| 4.24 |
| % |
| Core net interest margin |
|
|
| 3.30 |
| % |
|
|
| 3.32 |
| % |
|
|
| 4.08 |
| % |
| Efficiency ratio is a non-GAAP financial measure derived from GAAP-based amounts. This figure 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 gain/(loss) on sale of securities, other income - security recoveries, gain/(loss) on sale of other real estate owned, and gain/(loss) from debt extinguishment. 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 |
|
|
|
|
| March 31, |
|
|
| December 31, |
|
|
| March 31, |
|
|
|
|
| 2021 |
|
|
| 2020 |
|
|
| 2020 |
| Total noninterest expense |
|
|
| $ |
| 92,489 |
|
|
|
|
|
|
| $ |
| 99,939 |
|
|
|
|
|
|
| $ |
| 66,631 |
|
|
| Less: amortization of intangible assets |
|
|
| 4,143 |
|
|
|
|
|
|
| 4,505 |
|
|
|
|
|
|
| 3,965 |
|
|
| Less: merger-related expense |
|
|
| 5 |
|
|
|
|
|
|
| 5,071 |
|
|
|
|
|
|
| 1,724 |
|
|
| Less: other real estate owned operations, net |
|
|
| — |
|
|
|
|
|
|
| (5 |
| ) |
|
|
|
|
| 14 |
|
|
| Noninterest expense, adjusted |
|
|
| $ |
| 88,341 |
|
|
|
|
|
|
| $ |
| 90,368 |
|
|
|
|
|
|
| $ |
| 60,928 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest income before provision for loan losses |
|
|
| $ |
| 161,652 |
|
|
|
|
|
|
| $ |
| 168,198 |
|
|
|
|
|
|
| $ |
| 109,175 |
|
|
| Add: total noninterest income |
|
|
| 23,740 |
|
|
|
|
|
|
| 23,194 |
|
|
|
|
|
|
| 14,475 |
|
|
| Less: net gain from investment securities |
|
|
| 4,046 |
|
|
|
|
|
|
| 5,002 |
|
|
|
|
|
|
| 7,760 |
|
|
| Less: other income - security recoveries |
|
|
| 2 |
|
|
|
|
|
|
| 1 |
|
|
|
|
|
|
| — |
|
|
| Less: net gain (loss) from other real estate owned |
|
|
| — |
|
|
|
|
|
|
| (70 |
| ) |
|
|
|
|
| — |
|
|
| Less: net gain (loss) from debt extinguishment |
|
|
| (503 |
| ) |
|
|
|
|
| — |
|
|
|
|
|
|
| — |
|
|
| Revenue, adjusted |
|
|
| $ |
| 181,847 |
|
|
|
|
|
|
| $ |
| 186,459 |
|
|
|
|
|
|
| $ |
| 115,890 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Efficiency ratio |
|
|
| 48.6 |
| % |
|
|
| 48.5 |
| % |
|
|
| 52.6 |
| % |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210427005433/en/
Pacific Premier Bancorp, Inc.
Steven R. Gardner
Chairman, President, and Chief Executive Officer
(949) 864-8000
Ronald J. Nicolas, Jr.
Senior Executive Vice President and Chief Financial Officer
(949) 864-8000
Brett Villaume
Senior Vice President and Director of Investor Relations
(949) 553-9042