Wed. Nov 13th, 2019

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PPBI: Pacific Premier Bancorp, Inc. (NASDAQ: PPBI)

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Pacific Premier Bancorp, Inc. (NASDAQ: PPBI), the holding company of Pacific Premier Bank (the “Bank”), stated net income of $41.40M, or $0.690 for each diluted share for the 3rd-quarter of 2K19, contrast with net income of $38.50M, or $0.620 for each diluted share, for the second quarter of 2K19 and net income of $28.40M, or $0.460 for each diluted share, for the 3rd-quarter of 2018.

3rd-Quarter 2K19 Summary

  • Net income of $41.40M, or $0.690 for each diluted share
  • Return on average assets of 1.440 percentreturn on average equity of 8.320 percent and return on average tangible common equity of 16.270 percent
  • Net interest margin raised to 4.360 percent, core net interest margin raised to 4.120 percent
  • 12.0 percent annualized growth for non-maturity deposits, or $214.30M, since June 30, 2K19
  • Noninterest-bearing deposits raised to 41.00 percent of total deposits, a contrast to 39.00 percent in the prior quarter
  • Nonperforming assets as a percentage of total assets of 0.070 percent
  • Accomplished $100.00M share repurchase program authorized in October 2018

For the three months ended September 30, 2K19, the Company’s return on average assets (“ROAA”) was 1.440 percent, return on average equity (“ROAE”) was 8.320 percent and return on average tangible common equity (“ROATCE”) was 16.270 percent, contrast to 1.330 percent, 7.710 percent and 15.160 percent, respectively, for the second quarter of 2K19 and 1.00 percent, 5.950 percent and 12.890 percent, respectively, for the 3rd-quarter of 2018. Total assets were $11.80 billion at September 30, 2K19 contrast with $11.80 billion at June 30, 2K19 and $11.50 billion at September 30, 2018.

“Our performance continues to produce a superior level of risk-adjusted profitability, as we generated an ROAA of 1.440 percent and a ROATCE of 16.270 percent in the 3rd-quarter of 2K19. Our strong profitability facilitated us to return about $140.00M of capital to our shareholders during the first nine months of the year through our quarterly dividend and stock repurchase program.

“Our focus on core deposit gathering continues to produce positive results. During the 3rd-quarter, our noninterest-bearing and money market deposits raised by $233.20M, which facilitated us to reduce higher cost funding, improved our overall deposit mix and assisted drive a six basis point reduction in our cost of funds.

INCOME STATEMENT HIGHLIGHTS

Net Interest Income and Net Interest Margin

Net interest income totaled $112.30M in the 3rd-quarter of 2K19, a boost of $1.70M, or 1.50 percent, from the second quarter of 2K19. The increase in net interest income reflected one more day of interest, higher accretion and loan-related fees in addition to lower cost of funds driven mainly by lower average balances of Federal Home Loan Bank of San Francisco (“FHLB”) advances and rates, partially offset by lower interest-earning asset yields and average balances.

The net interest margin for the 3rd-quarter of 2K19 was 4.360 percent, contrast with 4.280 percent in the prior quarter. The increase was mainly driven by a higher accretion income of $6.00M contrast to $5.00M in the prior quarter. Our core net interest margin, which excludes the impact of accretion, raised four basis points to 4.120 percent, a contrast to 4.080 percent in the prior quarter. The increase in our core net interest margin was mainly attributable to higher loan-related fees and lower cost of funds.

We anticipate our core net interest margin will be in the range of 4.00 percent to 4.10 percent in the fourth quarter of 2K19.

Net interest income for the 3rd-quarter of 2K19 reduced $378,000.00, or 0.30 percent, a contrast to the 3rd-quarter of 2018. The decrease was mainly related to a boost in our cost of funds since the end of the 3rd-quarter of 2018, partially offset by a boost in average interest-earning asset balances, which resulted mainly from investment securities purchases and organic loan growth since the end of the 3rd-quarter of 2018.

Provision for Credit Losses

Provision for credit losses for the 3rd-quarter of 2K19 was $1.60M, a boost of $1.20M from the second quarter of 2K19. The increase was mainly because of the replenishment of $1.40M of net charge-offs in the 3rd-quarter, contrast to $360,000.00 replenishment in the second quarter. In Addition, the provision for unfunded commitments was $197,000.00 in contrast with a reduction of $408,000.00 in the prior quarter. Provision for credit losses for the 3rd-quarter of 2K19 reduced $419,000.00 contrast to the 3rd-quarter of 2018 mainly driven by lower loan balances and commitments, and continued strength in asset quality.

 

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