Fourth Quarter 2022 Summary
- Net income of $73.7 million, or $0.77 per diluted
share
- Return on average assets of 1.36%, return on average equity
of 10.71%, and return on average tangible common equity(1) of
16.99%
- Pre-provision net revenue (“PPNR”) to average assets(1) of
1.89%, annualized, increased from 1.85% in the prior
quarter
- Efficiency ratio(1) of 47.4%, compared with 48.3% in the
prior quarter
- Net interest margin of 3.61%, and core net interest
margin(1) of 3.38%
- Cost of deposits of 0.58%, and cost of core deposits(1) of
0.31%
- Loan-to-deposit ratio of 84.6%, compared with 84.0% in the
prior quarter
- Nonperforming assets to total assets of 0.14%, and net
charge-offs to average loans of 0.03%
- Total risk-based capital ratio of 15.53% and common equity
tier 1 capital ratio of 12.99%
- Tangible book value per share(1) increased $0.70, or 3.7%,
to $19.38 compared to the prior quarter
Pacific Premier Bancorp, Inc. (NASDAQ: PPBI) (the “Company” or
“Pacific Premier”), the holding company of Pacific Premier Bank
(the “Bank”), reported net income of $73.7 million, or $0.77 per
diluted share, for the fourth quarter of 2022, compared with net
income of $73.4 million, or $0.77 per diluted share, for the third
quarter of 2022, and net income of $84.8 million, or $0.89 per
diluted share, for the fourth quarter of 2021.
For the fourth quarter of 2022, the Company’s return on average
assets (“ROAA”) was 1.36%, return on average equity (“ROAE”) was
10.71%, and return on average tangible common equity (“ROATCE”)(1)
was 16.99%, compared to 1.35%, 10.57%, and 16.74%, respectively,
for the third quarter of 2022 and 1.63%, 11.90%, and 18.66%,
respectively, for the fourth quarter of 2021. Total assets as of
December 31, 2022 were $21.69 billion, compared to $21.62 billion
at September 30, 2022 and $21.09 billion at December 31, 2021.
Steven R. Gardner, Chairman, President, and Chief Executive
Officer of the Company, commented, “Our fourth quarter results
reflect the benefits of the actions we took over the past several
quarters to proactively manage risk and position the balance sheet
for higher interest rates. Despite a more challenging operating
environment, we continued to deliver solid financial performance,
including an increase in pre-provision net revenue(1) and higher
returns compared to the prior quarter. Tangible book value per
share(1) grew nearly 4% during the fourth quarter, and all of our
capital ratios increased.
“We remain committed to our disciplined, consistent approach to
new business development, which enabled us to add attractive full
banking relationships with high quality commercial clients during
the current quarter. With higher interest rates impacting demand
for commercial real estate and multifamily loans, coupled with our
conservative approach to new loan production, we saw a slight
contraction in total loans during the fourth quarter. Our core
commercial deposit base remained relatively stable, but the lower
level of commercial real estate transactions continued to result in
deposit outflows from our commercial escrow and exchange business.
We replaced these outflows with additional time deposits of varying
maturities, keeping our loan-to-deposit ratio in the mid-80%
range.
“As we head into 2023, our strong liquidity and capital levels
provide us with optionality as we navigate an uncertain economic
environment. Starting in the fourth quarter of 2022, our teams
began executing on new initiatives and marketing efforts to expand
the products and services we are offering to existing clients and
to enhance new client acquisitions, which we expect will drive
growth in future periods. As always, we will be here when our
clients need us most, and we will maintain our commitment to
delivering value to our shareholders, clients, employees, and the
communities we serve.”
____________________
(1)
Reconciliations of the non–U.S.
generally accepted accounting principles (“GAAP”) measures are set
forth at the end of this press release.
FINANCIAL HIGHLIGHTS
Three Months Ended
December 31,
September 30,
December 31,
(Dollars in
thousands, except per share data)
2022
2022
2021
Financial Highlights
Net income
$
73,673
$
73,363
$
84,831
Net interest income
181,396
181,112
170,719
Diluted earnings per share
0.77
0.77
0.89
Common equity dividend per share
0.33
0.33
0.33
Return on average assets
1.36
%
1.35
%
1.63
%
Return on average equity
10.71
10.57
11.90
Return on average tangible common equity
(1)
16.99
16.74
18.66
Pre-provision net revenue on average
assets (1)
1.89
1.85
1.93
Net interest margin
3.61
3.61
3.53
Core net interest margin (1)
3.38
3.44
3.38
Cost of deposits
0.58
0.22
0.04
Cost of core deposits (1)
0.31
0.11
0.03
Efficiency ratio (1)
47.4
48.3
48.0
Noninterest expense as a percent of
average assets
1.83
1.86
1.86
Total assets
$
21,688,017
$
21,619,201
$
21,094,429
Total deposits
17,352,401
17,746,374
17,115,589
Loans-to-deposit ratio
84.6
%
84.0
%
83.6
%
Non-maturity deposits as a percent of
total deposits
85.6
89.5
93.8
Book value per share
$
29.45
$
28.79
$
30.58
Tangible book value per share (1)
19.38
18.68
20.29
Total capital ratio
15.53
%
14.83
%
14.62
%
____________________
(1)
Reconciliations of the non-GAAP
measures are set forth at the end of this press release.
INCOME STATEMENT HIGHLIGHTS
Net Interest Income and Net Interest Margin
Net interest income totaled $181.4 million in the fourth quarter
of 2022, an increase of $284,000, or 0.2%, from the third quarter
of 2022. The slight increase in net interest income was driven by
higher yields on interest-earning assets, as well as a favorable
interest impact from fair value hedges on fixed-rate loans, mostly
offset by a higher cost of funds.
The net interest margin for the fourth quarter of 2022 was 3.61%
and unchanged from the third quarter of 2022. The core net interest
margin(6) decreased 6 basis points to 3.38%, compared to 3.44% in
the prior quarter, predominantly driven by lower loan-related fees
as well as a higher cost of funds offsetting the impact of higher
yields on interest-earning assets.
Net interest income for the fourth quarter of 2022 increased
$10.7 million, or 6.3%, compared to the fourth quarter of 2021. The
increase was primarily attributable to higher yields on average
interest-earning assets, partially offset by a higher cost of
funds.
PACIFIC PREMIER BANCORP, INC.
AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCES
AND YIELD DATA
(Unaudited)
Three Months Ended
December 31, 2022
September 30, 2022
December 31, 2021
(Dollars in
thousands)
Average Balance
Interest
Average Yield/
Cost
Average Balance
Interest
Average Yield/
Cost
Average Balance
Interest
Average Yield/ Cost
Assets
Cash and cash equivalents
$
1,015,197
$
8,636
3.37
%
$
665,510
$
2,754
1.64
%
$
334,371
$
66
0.08
%
Investment securities
4,130,042
24,688
2.39
4,277,444
22,067
2.06
4,833,251
19,522
1.62
Loans receivable, net (1) (2)
14,799,417
184,457
4.94
14,986,682
174,204
4.61
14,005,836
157,418
4.46
Total interest-earning assets
$
19,944,656
$
217,781
4.33
$
19,929,636
$
199,025
3.96
$
19,173,458
$
177,006
3.66
Liabilities
Interest-bearing deposits
$
11,021,383
$
25,865
0.93
%
$
10,839,359
$
9,873
0.36
%
$
10,471,426
$
1,694
0.06
%
Borrowings
1,157,258
10,520
3.62
966,981
8,040
3.31
400,014
4,593
4.59
Total interest-bearing liabilities
$
12,178,641
$
36,385
1.19
$
11,806,340
$
17,913
0.60
$
10,871,440
$
6,287
0.23
Noninterest-bearing deposits
$
6,587,400
$
6,893,463
$
6,911,702
Net interest income
$
181,396
$
181,112
$
170,719
Net interest margin (3)
3.61
%
3.61
%
3.53
%
Cost of deposits (4)
0.58
0.22
0.04
Cost of funds (5)
0.77
0.38
0.14
Cost of core deposits (6)
0.31
0.11
0.03
Ratio of interest-earning assets to
interest-bearing liabilities
163.77
168.80
176.37
____________________
(1)
Average balance includes loans
held for sale and nonperforming loans and is net of deferred loan
origination fees/costs, discounts/premiums, and the basis
adjustment of certain loans included in fair value hedging
relationships.
(2)
Interest income includes net
discount accretion of $3.5 million, $4.6 million, and $7.9 million,
for the three months ended December 31, 2022, September 30, 2022,
and December 31, 2021, respectively.
(3)
Represents annualized net
interest income divided by average interest-earning assets.
(4)
Represents annualized interest
expense on deposits divided by the sum of average interest-bearing
deposits and noninterest-bearing deposits.
(5)
Represents annualized total
interest expense divided by the sum of average total
interest-bearing liabilities and noninterest-bearing deposits.
(6)
Reconciliations of the non-GAAP
measures are set forth at the end of this press release.
Provision for Credit Losses
For the fourth quarter of 2022, the Company recorded a $2.8
million provision expense, compared to a $1.1 million provision
expense for the third quarter of 2022, and a $14.6 million
provision recapture for the fourth quarter of 2021. The provision
for credit losses for the fourth quarter of 2022 was impacted by
changes to the overall size, composition, asset quality trends, and
unfunded commitments of the loan portfolio.
The provision recapture for loans in the fourth quarter of 2021
was reflective of favorable changes in the macroeconomic forecasts
related to the COVID-19 pandemic relative to prior periods.
Three Months Ended
December 31,
September 30,
December 31,
(Dollars in
thousands)
2022
2022
2021
Provision for Credit Losses
Provision for loan losses
$
3,899
$
546
$
(14,710
)
Provision for unfunded commitments
(1,013
)
549
51
Provision for held-to-maturity
securities
(48
)
(18
)
11
Total provision for credit losses
$
2,838
$
1,077
$
(14,648
)
Noninterest Income
Noninterest income for the fourth quarter of 2022 was $20.5
million, an increase of $333,000 from the third quarter of 2022.
During the fourth quarter of 2022, the Bank sold $3.6 million of
Small Business Administration ("SBA") loans for a net gain of
$151,000 and $6.4 million of other loans for no gain, compared with
$9.6 million of SBA loans sold for a net gain of $434,000 and $15.0
million of other loans for a net gain of $23,000 in the third
quarter of 2022.
Noninterest income for the fourth quarter of 2022 decreased $6.8
million, compared to the fourth quarter of 2021. The decrease was
primarily due to a $3.6 million decrease in net gain from sales of
investment securities, a $1.9 million decrease in trust custodial
account fees resulting primarily from a decrease in the market
value of assets under custody, a $1.2 million decrease in net gain
from loan sales, and a $939,000 decrease in escrow and exchange
fees attributable to lower transaction volumes, partially offset by
an $851,000 increase in other income.
Three Months Ended
December 31,
September 30,
December 31,
(Dollars in
thousands)
2022
2022
2021
Noninterest income
Loan servicing income
$
346
$
397
$
505
Service charges on deposit accounts
2,689
2,704
2,590
Other service fee income
295
323
391
Debit card interchange fee income
1,048
808
769
Earnings on bank owned life insurance
3,359
3,339
3,521
Net gain from sales of loans
151
457
1,334
Net (loss) gain from sales of investment
securities
—
(393
)
3,585
Trust custodial account fees
9,722
9,951
11,611
Escrow and exchange fees
1,282
1,555
2,221
Other income
1,605
1,023
754
Total noninterest income
$
20,497
$
20,164
$
27,281
Noninterest Expense
Noninterest expense totaled $99.2 million for the fourth quarter
of 2022, a decrease of $1.7 million compared to the third quarter
of 2022, primarily due to a $2.0 million decrease in compensation
and benefits.
Noninterest expense increased by $1.9 million compared to the
fourth quarter of 2021 primarily due to a $2.9 million increase in
deposit expense and a $1.1 million increase in data processing,
partially offset by a $1.7 million decrease in compensation and
benefits.
Three Months Ended
December 31,
September 30,
December 31,
(Dollars in
thousands)
2022
2022
2021
Noninterest expense
Compensation and benefits
$
54,347
$
56,355
$
56,076
Premises and occupancy
11,641
12,011
11,403
Data processing
6,991
7,058
5,881
FDIC insurance premiums
1,463
1,461
1,389
Legal and professional services
5,175
4,075
5,870
Marketing expense
1,985
1,912
1,821
Office expense
1,310
1,338
1,463
Loan expense
743
789
857
Deposit expense
6,770
4,846
3,836
Amortization of intangible assets
3,440
3,472
3,880
Other expense
5,317
7,549
4,776
Total noninterest expense
$
99,182
$
100,866
$
97,252
Income Tax
For the fourth quarter of 2022, our income tax expense totaled
$26.2 million, resulting in an effective tax rate of 26.2%,
compared to income tax expense of $26.0 million and an effective
tax rate of 26.1% for the third quarter of 2022, and income tax
expense of $30.6 million and an effective tax rate of 26.5% for the
fourth quarter of 2021.
For full year 2022, our income tax expense totaled $100.6
million, resulting in an effective tax rate of 26.2%.
BALANCE SHEET HIGHLIGHTS
Loans
Loans held for investment totaled $14.7 billion at December 31,
2022, a decrease of $232.5 million, or 1.6%, from September 30,
2022, and an increase of $380.4 million, or 2.7%, from December 31,
2021. The decrease from September 30, 2022 was driven primarily by
lower loan fundings, partially offset by lower loan prepayments and
maturities. The increase from December 31, 2021 was due to loan
fundings, partially offset by loan amortization, prepayments, and
maturities.
During the fourth quarter of 2022, loan commitments totaled
$239.8 million, and new loan fundings totaled $149.1 million,
compared with $789.2 million in loan commitments and $450.7 million
in new loan fundings for the third quarter of 2022, and $1.48
billion in loan commitments and $1.07 billion in new loan fundings
for the fourth quarter of 2021.
At December 31, 2022, the total loan-to-deposit ratio was 84.6%,
compared with 84.0% and 83.6%, at September 30, 2022 and December
31, 2021, respectively.
The following table presents the primary loan roll-forward
activities for total gross loans, including both loans held for
investment and loans held for sale, during the quarters
indicated:
Three Months Ended
December 31,
September 30,
December 31,
(Dollars in
thousands)
2022
2022
2021
Beginning loan balance
$
14,979,098
$
15,101,652
$
13,990,961
New commitments
239,829
789,198
1,479,445
Unfunded new commitments
(90,758
)
(338,534
)
(408,963
)
Net new fundings
149,071
450,664
1,070,482
Amortization/maturities/payoffs
(481,120
)
(568,615
)
(935,064
)
Net draws on existing lines of credit
107,560
21,416
194,548
Loan sales
(9,471
)
(24,701
)
(13,427
)
Charge-offs
(4,271
)
(1,318
)
(734
)
Net (decrease) increase
(238,231
)
(122,554
)
315,805
Ending gross loan balance before basis
adjustment
14,740,867
14,979,098
14,306,766
Basis adjustment associated with fair
value hedge (1)
(61,926
)
(68,124
)
—
Ending gross loan balance
$
14,678,941
$
14,910,974
$
14,306,766
____________________
(1)
Represents the basis adjustment
associated with the application of hedge accounting on certain
loans.
The following table presents the composition of the loans held
for investment as of the dates indicated:
December 31,
September 30,
December 31,
(Dollars in
thousands)
2022
2022
2021
Investor loans secured by real
estate
Commercial real estate (“CRE”)
non-owner-occupied
$
2,660,321
$
2,771,272
$
2,771,137
Multifamily
6,112,026
6,199,581
5,891,934
Construction and land
399,034
373,194
277,640
SBA secured by real estate (1)
42,135
42,998
46,917
Total investor loans secured by real
estate
9,213,516
9,387,045
8,987,628
Business loans secured by real estate
(2)
CRE owner-occupied
2,432,163
2,477,530
2,251,014
Franchise real estate secured
378,057
383,468
380,381
SBA secured by real estate (3)
61,368
64,002
69,184
Total business loans secured by real
estate
2,871,588
2,925,000
2,700,579
Commercial loans (4)
Commercial and industrial
2,160,948
2,164,623
2,103,112
Franchise non-real estate secured
404,791
409,773
392,576
SBA non-real estate secured
11,100
11,557
11,045
Total commercial loans
2,576,839
2,585,953
2,506,733
Retail loans
Single family residential (5)
72,997
75,176
95,292
Consumer
3,284
3,761
5,665
Total retail loans
76,281
78,937
100,957
Loans held for investment before basis
adjustment (6)
14,738,224
14,976,935
14,295,897
Basis adjustment associated with fair
value hedge (7)
(61,926
)
(68,124
)
—
Loans held for investment
14,676,298
14,908,811
14,295,897
Allowance for credit losses for loans held
for investment
(195,651
)
(195,549
)
(197,752
)
Loans held for investment, net
$
14,480,647
$
14,713,262
$
14,098,145
Total unfunded loan commitments
2,489,203
2,823,555
2,507,911
Loans held for sale, at lower of cost or
fair value
$
2,643
$
2,163
$
10,869
____________________
(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 $54.8 million, $59.0 million, and $77.1
million as of December 31, 2022, September 30, 2022, and December
31, 2021, respectively.
(7)
Represents the basis adjustment
associated with the application of hedge accounting on certain
loans.
The total end of period weighted average interest rate on loans,
excluding fees and discounts, at December 31, 2022 was 4.61%,
compared with 4.34% at September 30, 2022 and 3.95% at December 31,
2021. The quarter-over-quarter and year-over-year increases reflect
higher rates on new loan originations and the repricing of floating
rate loans as a result of the Federal Reserve Bank's interest rate
increases since March 2022.
The following table presents the composition of loan commitments
originated during the quarters indicated:
Three Months Ended
December 31,
September 30,
December 31,
(Dollars in
thousands)
2022
2022
2021
Investor loans secured by real
estate
CRE non-owner-occupied
$
34,258
$
88,708
$
94,740
Multifamily
28,285
151,269
552,600
Construction and land
31,175
123,557
94,343
Total investor loans secured by real
estate
93,718
363,534
741,683
Business loans secured by real estate
(2)
CRE owner-occupied
24,266
80,676
147,322
Franchise real estate secured
840
14,011
52,034
SBA secured by real estate (3)
4,198
6,468
15,631
Total business loans secured by real
estate
29,304
101,155
214,987
Commercial loans (4)
Commercial and industrial
96,566
288,857
469,018
Franchise non-real estate secured
14,130
22,413
43,219
SBA non-real estate secured
1,058
4,673
3,500
Total commercial loans
111,754
315,943
515,737
Retail loans
Single family residential (5)
5,053
8,566
6,800
Consumer
—
—
238
Total retail loans
5,053
8,566
7,038
Total loan commitments
$
239,829
$
789,198
$
1,479,445
____________________
(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
increased to 6.34% in the fourth quarter of 2022, compared to 5.55%
in the third quarter of 2022, and 3.55% in the fourth quarter of
2021.
Asset Quality and Allowance for Credit Losses
At December 31, 2022, our ACL on loans held for investment was
$195.7 million, an increase of $102,000 from September 30, 2022,
and a decrease of $2.1 million from December 31, 2021. During the
fourth quarter of 2022, the Company incurred $3.8 million of net
charge-offs, compared with $1.1 million of net charge-offs and $1.0
million of net recoveries during the third quarter of 2022 and the
fourth quarter of 2021, 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 December
31, 2022
(Dollars in thousands)
Beginning ACL Balance
Charge-offs
Recoveries
Provision for Credit
Losses
Ending ACL
Balance
Investor loans secured by real
estate
CRE non-owner occupied
$
37,104
$
(3,632
)
$
—
$
220
$
33,692
Multifamily
56,086
—
—
248
56,334
Construction and land
6,440
—
—
674
7,114
SBA secured by real estate (1)
2,955
—
—
(363
)
2,592
Business loans secured by real estate
(2)
CRE owner-occupied
31,826
—
23
491
32,340
Franchise real estate secured
6,710
—
—
309
7,019
SBA secured by real estate (3)
4,785
—
—
(437
)
4,348
Commercial loans (4)
Commercial and industrial
35,498
(637
)
387
(79
)
35,169
Franchise non-real estate secured
13,194
—
—
2,835
16,029
SBA non-real estate secured
440
—
7
(6
)
441
Retail loans
Single family residential (5)
296
—
57
(1
)
352
Consumer loans
215
(2
)
—
8
221
Totals
$
195,549
$
(4,271
)
$
474
$
3,899
$
195,651
____________________
(1)
SBA loans that are collateralized
by hotel/motel real property.
(2)
Loans to businesses that are
collateralized by real estate where the operating cash flow of the
business is the primary source of repayment.
(3)
SBA loans that are collateralized
by real property other than hotel/motel real property.
(4)
Loans to businesses where the
operating cash flow of the business is the primary source of
repayment.
(5)
Single family residential
includes home equity lines of credit, as well as second trust
deeds.
The ratio of ACL to loans held for investment at December 31,
2022 was 1.33%, compared to 1.31% at September 30, 2022 and 1.38%
at December 31, 2021. The fair value net discount on loans acquired
through bank acquisitions was $54.8 million, or 0.37% of total
loans held for investment, as of December 31, 2022, compared to
$59.0 million, or 0.39% of total loans held for investment, as of
September 30, 2022, and $77.1 million, or 0.54% of total loans held
for investment, as of December 31, 2021.
Nonperforming assets totaled $30.9 million, or 0.14% of total
assets, at December 31, 2022, compared with $60.5 million, or 0.28%
of total assets, at September 30, 2022 and $31.3 million, or 0.15%
of total assets, at December 31, 2021. Loan delinquencies were
$43.3 million, or 0.30% of loans held for investment, at December
31, 2022, compared to $41.3 million, or 0.28% of loans held for
investment, at September 30, 2022, and $19.5 million, or 0.14% of
loans held for investment, at December 31, 2021.
Classified loans totaled $149.3 million, or 1.02% of loans held
for investment, at December 31, 2022, compared with $110.1 million,
or 0.74% of loans held for investment, at September 30, 2022, and
$121.8 million, or 0.85% of loans held for investment, at December
31, 2021.
The following table presents the asset quality metrics of the
loan portfolio as of the dates indicated:
December 31,
September 30,
December 31,
(Dollars in thousands)
2022
2022
2021
Asset Quality
Nonperforming loans
$
30,905
$
60,464
$
31,273
Other real estate owned
—
—
—
Nonperforming assets
$
30,905
$
60,464
$
31,273
Total classified assets (1)
$
149,304
$
110,143
$
121,827
Allowance for credit losses
195,651
195,549
197,752
Allowance for credit losses as a percent
of total nonperforming loans
633
%
323
%
632
%
Nonperforming loans as a percent of loans
held for investment
0.21
0.41
0.22
Nonperforming assets as a percent of total
assets
0.14
0.28
0.15
Classified loans to total loans held for
investment
1.02
0.74
0.85
Classified assets to total assets
0.69
0.51
0.58
Net loan charge-offs (recoveries) for the
quarter ended
$
3,797
$
1,072
$
(981
)
Net loan charge-offs (recoveries) for the
quarter to average total loans
0.03
%
0.01
%
(0.01
)%
Allowance for credit losses to loans held
for investment (2)
1.33
1.31
1.38
Delinquent Loans:
30 - 59 days
$
20,538
$
1,484
$
1,395
60 - 89 days
185
6,535
—
90+ days
22,625
33,238
18,100
Total delinquency
$
43,348
$
41,257
$
19,495
Delinquency as a percent of loans held for
investment
0.30
%
0.28
%
0.14
%
____________________
(1)
Includes substandard loans and
other real estate owned.
(2)
At December 31, 2022, 26% of
loans held for investment include a fair value net discount of
$54.8 million, or 0.37% of loans held for investment. At September
30, 2022, 27% of loans held for investment include a fair value net
discount of $59.0 million, or 0.39% of loans held for investment.
At December 31, 2021, 36% of loans held for investment include a
fair value net discount of $77.1 million, or 0.54% of loans held
for investment.
Investment Securities
At December 31, 2022, available-for-sale ("AFS") and
held-to-maturity ("HTM") investment securities were $2.60 billion
and $1.39 billion, respectively, compared to $2.66 billion and
$1.39 billion, respectively, at September 30, 2022, and $4.27
billion and $381.7 million, respectively, at December 31, 2021. In
total, investment securities were $3.99 billion at December 31,
2022, a decrease of $57.5 million from $4.05 billion at September
30, 2022 and a decrease of $666.4 million from $4.66 billion at
December 31, 2021. The decrease in the fourth quarter of 2022
compared to the prior quarter was primarily the result of principal
payments, amortization, and redemptions of $85.1 million, partially
offset by a mark-to-market fair value loss reduction of $20.6
million. The Company did not purchase or sell any securities during
the fourth quarter of 2022.
The decrease in investment securities from December 31, 2021 was
primarily the result of $934.7 million in sales, $426.2 million in
principal payments, discounts from the AFS securities transferred
from HTM, amortization, and redemptions, and a $299.0 million
decrease in mark-to-market fair value adjustments as a result of
higher interest rates, partially offset by $986.6 million in
purchases.
Deposits
At December 31, 2022, deposits totaled $17.35 billion, a
decrease of $394.0 million, or 2.2%, from September 30, 2022, and
an increase of $236.8 million, or 1.38%, from December 31,
2021.
At December 31, 2022, core deposits(1) totaled $14.85 billion,
or 85.6% of total deposits, a decrease of $1.03 billion, or 6.5%,
from September 30, 2022, and a decrease of $1.20 billion, or 7.5%,
from December 31, 2021. The linked-quarter decrease was partially
driven by a $396.7 million decrease in the Bank's commercial escrow
and exchange business, as well as declines in commercial and
consumer deposit accounts.
At December 31, 2022, non-core deposits totaled $2.50 billion,
an increase of $631.7 million, or 33.8%, from September 30, 2022,
and an increase of $1.44 billion, or 135.3%, from December 31,
2021. The increase in the fourth quarter of 2022 compared to the
prior quarter was primarily due to the addition of $417.7 million
in brokered certificates of deposit and an increase of $214.0
million in retail certificates of deposit. The increase from
December 31, 2021 was primarily driven by an increase in brokered
certificates of deposit.
The weighted average cost of deposits for the fourth quarter of
2022 was 0.58%, compared with 0.22% for the third quarter of 2022
and 0.04% for the fourth quarter of 2021. The increase in the
weighted average cost of deposits for the fourth quarter of 2022
compared to the third quarter of 2022 was principally driven by
higher pricing across all deposit categories, and higher average
retail and brokered certificates of deposit. The weighted average
cost of core deposits(2) for the fourth quarter of 2022 was 0.31%,
compared to 0.11% for the third quarter of 2022, and 0.03% for the
fourth quarter of 2021.
At December 31, 2022, the end-of-period weighted average rate of
total deposits was 0.79%, compared to 0.37% at September 30, 2022
and 0.04% at December 31, 2021. At December 31, 2022, the
end-of-period weighted average rate of core deposits was 0.43%,
compared to 0.20% at September 30, 2022 and 0.03% at December 31,
2021.
December 31,
September 30,
December 31,
(Dollars in
thousands)
2022
2022
2021
Deposit Accounts
Noninterest-bearing checking
$
6,306,825
$
6,775,465
$
6,757,259
Interest-bearing:
Checking
3,119,850
3,605,498
3,493,331
Money market/savings
5,422,577
5,493,958
5,801,173
Total core deposits (1)
14,849,252
15,874,921
16,051,763
Brokered money market
30
30
5,553
Retail certificates of deposit
1,086,423
872,421
1,058,273
Wholesale/brokered certificates of
deposit
1,416,696
999,002
—
Total non-core deposits
2,503,149
1,871,453
1,063,826
Total deposits
$
17,352,401
$
17,746,374
$
17,115,589
Cost of deposits
0.58
%
0.22
%
0.04
%
Cost of core deposits (2)
0.31
0.11
0.03
Noninterest-bearing deposits as a percent
of total deposits
36.3
38.2
39.5
Non-maturity deposits as a percent of
total deposits
85.6
89.5
93.8
Core deposits as a percent of total
deposits
85.6
89.5
93.8
____________________
(1)
Core deposits are total deposits
excluding all certificates of deposits and all brokered
deposits.
(2)
Reconciliations of the non-GAAP
measures are set forth at the end of this press release.
Borrowings
At December 31, 2022, total borrowings amounted to $1.33
billion, an increase of $400.2 million from September 30, 2022 and
an increase of $442.6 million from December 31, 2021. Total
borrowings at December 31, 2022 included $1.00 billion of Federal
Home Loan Bank of San Francisco (“FHLB”) term advances and $331.2
million of subordinated debt. The increase in borrowings at
December 31, 2022 as compared to September 30, 2022 was primarily
due to an increase of $400.0 million in FHLB term advances to
manage interest rate risk and liquidity. The increase in borrowings
at December 31, 2022 as compared to December 31, 2021 was primarily
due to an increase of $450.0 million in FHLB term advances for the
same purpose.
Capital Ratios
At December 31, 2022, our common stockholder's equity was $2.80
billion, or 12.90% of total assets, compared with $2.74 billion, or
12.65% of total assets, at September 30, 2022, and $2.89 billion,
or 13.68% of total assets, at December 31, 2021, with a book value
per share of $29.45, compared with $28.79 at September 30, 2022 and
$30.58 at December 31, 2021. At December 31, 2022, the ratio of
tangible common equity to total assets(1) was 8.88%, compared with
8.59% at September 30, 2022 and 9.52% at December 31, 2021, and
tangible book value per share(1) was $19.38, compared with $18.68
at September 30, 2022 and $20.29 at December 31, 2021. The increase
in tangible book value per share at December 31, 2022 from the
prior quarter was primarily driven by net income and other
comprehensive income on our AFS securities portfolio during the
quarter, partially offset by the dividends paid. The decrease in
tangible book value per share at December 31, 2022 from December
31, 2021 was primarily driven by the other comprehensive loss from
the impact of higher interest rates on our AFS securities portfolio
and dividends paid, partially offset by net income in 2022.
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. In the first quarter of 2022,
the Company began phasing into regulatory capital the cumulative
adjustments at the end of the second year of the transition period
at 25% per year. At December 31, 2022, the Company and Bank were in
compliance with the capital conservation buffer requirement and
exceeded the minimum Common Equity Tier 1, Tier 1, and total
capital ratios, inclusive of the fully phased-in capital
conservation buffer of 7.0%, 8.5% and 10.5%, respectively, and the
Bank qualified as “well-capitalized” for purposes of the federal
bank regulatory prompt corrective action regulations.
____________________
(1)
Reconciliations of the non-GAAP
measures are set forth at the end of this press release.
The following table presents capital ratios and share data as of
the dates indicated:
December 31,
September 30,
December 31,
Capital Ratios
2022
2022
2021
Pacific Premier Bancorp, Inc.
Consolidated
Tier 1 leverage ratio
10.29
%
10.12
%
10.08
%
Common equity tier 1 risk-based capital
ratio
12.99
12.36
12.11
Tier 1 risk-based capital ratio
12.99
12.36
12.11
Total risk-based capital ratio
15.53
14.83
14.62
Tangible common equity ratio (1)
8.88
8.59
9.52
Pacific Premier Bank
Tier 1 leverage ratio
11.80
%
11.64
%
11.62
%
Common equity tier 1 risk-based capital
ratio
14.89
14.23
13.96
Tier 1 risk-based capital ratio
14.89
14.23
13.96
Total risk-based capital ratio
15.74
15.05
14.70
Share Data
Book value per share
$
29.45
$
28.79
$
30.58
Tangible book value per share (1)
19.38
18.68
20.29
Common equity dividends declared per
share
0.33
0.33
0.33
Closing stock price (2)
31.56
30.96
40.03
Shares issued and outstanding
95,021,760
95,016,767
94,389,543
Market Capitalization (2)(3)
$
2,998,887
$
2,941,719
$
3,778,413
____________________
(1)
A reconciliation of the non-GAAP
measures of tangible common equity and tangible book value per
share to the GAAP measures of common stockholders' equity and book
value per share is set forth below.
(2)
As of the last trading day prior
to period end.
(3)
Dollars in thousands.
Dividend and Stock Repurchase Program
On January 24, 2023, the Company's Board of Directors declared a
$0.33 per share dividend, payable on February 10, 2023 to
stockholders of record on February 3, 2023. In January 2021, the
Company’s Board of Directors approved a stock repurchase program,
which authorized the repurchase up to 4,725,000 shares of its
common stock. During the fourth quarter of 2022, the Company did
not repurchase any shares of common stock.
Conference Call and Webcast
The Company will host a conference call at 9:00 a.m. PT / 12:00
p.m. ET on January 26, 2023 to discuss its financial results.
Analysts and investors may participate in the question-and-answer
session. A live webcast will be available on the Webcasts page of
the Company's investor relations website. An archived version of
the webcast will be available in the same location shortly after
the live call has ended. The conference call can be accessed by
telephone at (866) 290-5977. Participants should ask to be joined
into the Pacific Premier Bancorp, Inc. call. Additionally, a
telephone replay will be made available through February 2, 2023 at
(877) 344-7529, access code 4933909.
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, 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 $22 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 over
$17 billion of assets under custody and approximately 39,000 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. These 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; our ability to attract and retain
deposits and access to other sources of liquidity; the effect of
acquisitions we have made or may make, including, without
limitation, the failure to achieve the expected revenue growth
and/or expense savings from such acquisitions, and/or the failure
to effectively integrate an acquisition target into our operations;
the timely development of competitive new products and services and
the acceptance of these products and services by new and existing
customers; possible impairment charges to goodwill, including any
impairment that may result from increased volatility in our stock
price; the impact of changes in financial services policies, laws,
and regulations, including those concerning taxes, banking,
securities, and insurance, and the application thereof by
regulatory bodies; the effectiveness of our risk management
framework and quantitative models; changes in the level of our
nonperforming assets and charge-offs; the transition away from USD
LIBOR and related uncertainty as well as the risk and costs related
to our adoption of 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; the impact of
governmental efforts to restructure the U.S. financial regulatory
system; the impact of recent or future changes in the FDIC
insurance assessment rate or the rules and regulations related to
the calculation of the FDIC insurance assessment amount; 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; the possibility that we may
reduce or discontinue the payments of dividends on our common
stock; the possibility that we may discontinue, reduce or otherwise
limit the level of repurchases of our common stock we may make from
time to time pursuant to our stock repurchase program; changes in
the financial performance and/or condition of our borrowers;
changes in the competitive environment among financial and bank
holding companies and other financial service providers;
geopolitical conditions, including acts or threats of terrorism,
actions taken by the United States or other governments in response
to acts or threats of terrorism, and/or military conflicts,
including the war between Russia and Ukraine, which could impact
business and economic conditions in the United States and abroad;
public health crises 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; climate change, including the enhanced
regulatory, compliance, credit and reputational risks and costs;
natural disasters, earthquakes, fires, and severe weather;
unanticipated regulatory or legal proceedings; and our ability to
manage the risks involved in the foregoing. Additional factors that
could cause actual results to differ materially from those
expressed in the forward-looking statements are discussed in the
Company's 2021 Annual Report on Form 10-K filed with the SEC and
available at the SEC’s Internet site (http://www.sec.gov).
The Company undertakes no obligation to revise or publicly
release any revision or update to these forward-looking statements
to reflect events or circumstances that occur after the date on
which such statements were made.
PACIFIC PREMIER BANCORP, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
FINANCIAL CONDITION
(Unaudited)
December 31,
September 30,
June 30,
March 31,
December 31,
(Dollars in
thousands)
2022
2022
2022
2022
2021
ASSETS
Cash and cash equivalents
$
1,101,249
$
739,211
$
972,798
$
809,259
$
304,703
Interest-bearing time deposits with
financial institutions
1,734
1,733
2,216
2,216
2,216
Investments held-to-maturity, at amortized
cost, net of allowance for credit losses
1,388,103
1,385,502
1,390,682
996,382
381,674
Investment securities available for sale,
at fair value
2,601,013
2,661,079
2,679,070
3,222,095
4,273,864
FHLB, FRB, and other stock
119,918
118,778
118,636
116,973
117,538
Loans held for sale, at lower of cost or
fair value
2,643
2,163
2,957
11,646
10,869
Loans held for investment
14,676,298
14,908,811
15,047,608
14,733,755
14,295,897
Allowance for credit losses
(195,651
)
(195,549
)
(196,075
)
(197,517
)
(197,752
)
Loans held for investment, net
14,480,647
14,713,262
14,851,533
14,536,238
14,098,145
Accrued interest receivable
73,784
66,192
66,898
60,922
65,728
Premises and equipment
64,543
65,651
68,435
70,453
71,908
Deferred income taxes, net
183,602
190,948
163,767
133,938
87,344
Bank owned life insurance
460,010
457,301
454,593
451,968
449,353
Intangible assets
55,588
59,028
62,500
65,978
69,571
Goodwill
901,312
901,312
901,312
901,312
901,312
Other assets
253,871
257,041
258,522
242,916
260,204
Total assets
$
21,688,017
$
21,619,201
$
21,993,919
$
21,622,296
$
21,094,429
LIABILITIES
Deposit accounts:
Noninterest-bearing checking
$
6,306,825
$
6,775,465
$
6,934,318
$
7,106,548
$
6,757,259
Interest-bearing:
Checking
3,119,850
3,605,498
4,149,432
3,679,067
3,493,331
Money market/savings
5,422,607
5,493,988
5,545,230
5,872,597
5,806,726
Retail certificates of deposit
1,086,423
872,421
855,966
1,031,011
1,058,273
Wholesale/brokered certificates of
deposit
1,416,696
999,002
599,667
—
—
Total interest-bearing
11,045,576
10,970,909
11,150,295
10,582,675
10,358,330
Total deposits
17,352,401
17,746,374
18,084,613
17,689,223
17,115,589
FHLB advances and other borrowings
1,000,000
600,000
600,000
600,000
558,000
Subordinated debentures
331,204
331,045
330,886
330,726
330,567
Accrued expenses and other liabilities
206,023
206,386
223,201
219,329
203,962
Total liabilities
18,889,628
18,883,805
19,238,700
18,839,278
18,208,118
STOCKHOLDERS’ EQUITY
Common stock
933
933
933
933
929
Additional paid-in capital
2,362,663
2,357,731
2,353,361
2,348,727
2,351,294
Retained earnings
700,040
657,845
615,943
577,591
541,950
Accumulated other comprehensive loss
(265,247
)
(281,113
)
(215,018
)
(144,233
)
(7,862
)
Total stockholders' equity
2,798,389
2,735,396
2,755,219
2,783,018
2,886,311
Total liabilities and stockholders'
equity
$
21,688,017
$
21,619,201
$
21,993,919
$
21,622,296
$
21,094,429
PACIFIC PREMIER BANCORP, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited)
Three Months Ended
Year Ended
December 31,
September 30,
December 31,
December 31,
December 31,
(Dollars in
thousands, except per share data)
2022
2022
2021
2022
2021
INTEREST INCOME
Loans
$
184,457
$
174,204
$
157,418
$
673,720
$
622,033
Investment securities and other
interest-earning assets
33,324
24,821
19,588
94,858
74,706
Total interest income
217,781
199,025
177,006
768,578
696,739
INTEREST EXPENSE
Deposits
25,865
9,873
1,694
40,093
11,817
FHLB advances and other borrowings
5,960
3,480
33
13,131
99
Subordinated debentures
4,560
4,560
4,560
18,242
22,449
Total interest expense
36,385
17,913
6,287
71,466
34,365
Net interest income before provision for
credit losses
181,396
181,112
170,719
697,112
662,374
Provision for credit losses
2,838
1,077
(14,648
)
4,832
(70,876
)
Net interest income after provision for
credit losses
178,558
180,035
185,367
692,280
733,250
NONINTEREST INCOME
Loan servicing income
346
397
505
1,664
2,121
Service charges on deposit accounts
2,689
2,704
2,590
10,698
9,219
Other service fee income
295
323
391
1,351
1,566
Debit card interchange fee income
1,048
808
769
3,628
3,489
Earnings on bank owned life insurance
3,359
3,339
3,521
13,159
11,299
Net gain from sales of loans
151
457
1,334
3,238
4,428
Net (loss) gain from sales of investment
securities
—
(393
)
3,585
1,710
16,906
Trust custodial account fees
9,722
9,951
11,611
41,606
38,176
Escrow and exchange fees
1,282
1,555
2,221
6,325
7,286
Other income
1,605
1,023
754
5,369
13,360
Total noninterest income
20,497
20,164
27,281
88,748
107,850
NONINTEREST EXPENSE
Compensation and benefits
54,347
56,355
56,076
225,245
215,690
Premises and occupancy
11,641
12,011
11,403
47,433
48,234
Data processing
6,991
7,058
5,881
26,649
23,770
FDIC insurance premiums
1,463
1,461
1,389
5,772
5,274
Legal and professional services
5,175
4,075
5,870
17,947
18,554
Marketing expense
1,985
1,912
1,821
7,632
6,917
Office expense
1,310
1,338
1,463
5,103
5,957
Loan expense
743
789
857
3,810
4,469
Deposit expense
6,770
4,846
3,836
19,448
15,654
Merger-related expense
—
—
—
—
5
Amortization of intangible assets
3,440
3,472
3,880
13,983
15,936
Other expense
5,317
7,549
4,776
23,648
19,817
Total noninterest expense
99,182
100,866
97,252
396,670
380,277
Net income before income taxes
99,873
99,333
115,396
384,358
460,823
Income tax
26,200
25,970
30,565
100,615
120,934
Net income
$
73,673
$
73,363
$
84,831
$
283,743
$
339,889
EARNINGS PER SHARE
Basic
$
0.78
$
0.77
$
0.90
$
2.99
$
3.60
Diluted
0.77
0.77
0.89
2.98
3.58
WEIGHTED AVERAGE SHARES
OUTSTANDING
Basic
93,810,468
93,793,502
93,415,304
93,718,293
93,532,109
Diluted
94,176,633
94,120,637
93,906,491
94,091,461
94,012,137
SELECTED FINANCIAL DATA
PACIFIC PREMIER BANCORP, INC.
AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCES
AND YIELD DATA
(Unaudited)
Three Months Ended
December 31, 2022
September 30, 2022
December 31, 2021
(Dollars in
thousands)
Average Balance
Interest
Average Yield/
Cost
Average Balance
Interest
Average Yield/
Cost
Average Balance
Interest
Average Yield/ Cost
Assets
Interest-earning assets:
Cash and cash equivalents
$
1,015,197
$
8,636
3.37
%
$
665,510
$
2,754
1.64
%
$
334,371
$
66
0.08
%
Investment securities
4,130,042
24,688
2.39
4,277,444
22,067
2.06
4,833,251
19,522
1.62
Loans receivable, net (1) (2)
14,799,417
184,457
4.94
14,986,682
174,204
4.61
14,005,836
157,418
4.46
Total interest-earning assets
19,944,656
217,781
4.33
19,929,636
199,025
3.96
19,173,458
177,006
3.66
Noninterest-earning assets
1,784,277
1,757,800
1,693,547
Total assets
$
21,728,933
$
21,687,436
$
20,867,005
Liabilities and Equity
Interest-bearing deposits:
Interest checking
$
3,320,146
$
3,752
0.45
%
$
3,812,448
$
1,658
0.17
%
$
3,501,323
$
225
0.03
%
Money market
4,998,726
7,897
0.63
5,053,890
2,940
0.23
5,467,559
925
0.07
Savings
443,016
310
0.28
434,591
28
0.03
418,218
27
0.03
Retail certificates of deposit
975,958
3,941
1.60
835,645
1,420
0.67
1,084,326
517
0.19
Wholesale/brokered certificates of
deposit
1,283,537
9,965
3.08
702,785
3,827
2.16
—
—
—
Total interest-bearing deposits
11,021,383
25,865
0.93
10,839,359
9,873
0.36
10,471,426
1,694
0.06
FHLB advances and other borrowings
826,125
5,960
2.86
636,006
3,480
2.17
69,538
33
0.19
Subordinated debentures
331,133
4,560
5.51
330,975
4,560
5.51
330,476
4,560
5.52
Total borrowings
1,157,258
10,520
3.62
966,981
8,040
3.31
400,014
4,593
4.59
Total interest-bearing liabilities
12,178,641
36,385
1.19
11,806,340
17,913
0.60
10,871,440
6,287
0.23
Noninterest-bearing deposits
6,587,400
6,893,463
6,911,702
Other liabilities
211,731
212,509
232,863
Total liabilities
18,977,772
18,912,312
18,016,005
Stockholders' equity
2,751,161
2,775,124
2,851,000
Total liabilities and equity
$
21,728,933
$
21,687,436
$
20,867,005
Net interest income
$
181,396
$
181,112
$
170,719
Net interest margin (3)
3.61
%
3.61
%
3.53
%
Cost of deposits (4)
0.58
0.22
0.04
Cost of funds (5)
0.77
0.38
0.14
Cost of core deposits (6)
0.31
0.11
0.03
Ratio of interest-earning assets to
interest-bearing liabilities
163.77
168.80
176.37
For the Year Ended December
31,
2022
2021
(Dollars in
thousands)
Average Balance
Interest
Average Yield/
Cost
Average Balance
Interest
Average Yield/
Cost
Assets
Interest-earning assets:
Cash and cash equivalents
$
678,270
$
12,691
1.87
%
$
904,159
$
877
0.10
%
Investment securities
4,301,005
82,167
1.91
4,495,956
73,829
1.64
Loans receivable, net (1)(2)
14,767,554
673,720
4.56
13,497,119
622,033
4.61
Total interest-earning assets
19,746,829
768,578
3.89
18,897,234
696,739
3.69
Noninterest-earning assets
1,766,599
1,595,168
Total assets
$
21,513,428
$
20,492,402
Liabilities and Equity
Interest-bearing deposits:
Interest checking
$
3,681,244
$
6,351
0.17
%
$
3,276,638
$
1,270
0.04
%
Money market
5,155,785
12,735
0.25
5,507,469
6,824
0.12
Savings
433,156
391
0.09
393,332
251
0.06
Retail certificates of deposit
944,963
6,498
0.69
1,248,956
3,332
0.27
Wholesale/brokered certificates of
deposit
520,652
14,118
2.71
29,645
140
0.47
Total interest-bearing deposits
10,735,800
40,093
0.37
10,456,040
11,817
0.11
FHLB advances and other borrowings
574,320
13,131
2.29
24,947
99
0.40
Subordinated debentures
330,885
18,242
5.51
410,067
22,449
5.47
Total borrowings
905,205
31,373
3.47
435,014
22,548
5.18
Total interest-bearing liabilities
11,641,005
71,466
0.61
10,891,054
34,365
0.32
Noninterest-bearing deposits
6,859,141
6,527,259
Other liabilities
224,739
275,496
Total liabilities
18,724,885
17,693,809
Stockholders’ equity
2,788,543
2,798,593
Total liabilities and equity
$
21,513,428
$
20,492,402
Net interest income
$
697,112
$
662,374
Net interest rate spread
3.28
%
3.37
%
Net interest margin (3)
3.53
3.51
Cost of deposits (4)
0.23
0.07
Cost of funds (5)
0.39
0.20
Cost of core deposits (6)
0.12
0.05
Ratio of interest-earning assets to
interest-bearing liabilities
169.63
173.51
____________________
(1)
Average balance includes loans
held for sale and nonperforming loans and is net of deferred loan
origination fees/costs and discounts/premiums, and the basis
adjustments of certain loans included in fair value hedging
relationships.
(2)
Interest income includes net
discount accretion of $3.5 million, $4.6 million, and $7.9 million,
for the three months ended December 31, 2022, September 30, 2022,
and December 31, 2021, respectively, and $21.7 million and $36.7
million, respectively, for the years ended December 31, 2022 and
December 31, 2021, respectively.
(3)
Represents net interest income
divided by average interest-earning assets.
(4)
Represents annualized interest
expense on deposits divided by the sum of average interest-bearing
deposits and noninterest-bearing deposits.
(5)
Represents annualized total
interest expense divided by the sum of average total
interest-bearing liabilities and noninterest-bearing deposits.
(6)
Reconciliations of the non-GAAP
measures are set forth at the end of this press release.
PACIFIC PREMIER BANCORP, INC.
AND SUBSIDIARIES
LOAN PORTFOLIO
COMPOSITION
(Unaudited)
December 31,
September 30,
June 30,
March 31,
December 31,
(Dollars in
thousands)
2022
2022
2022
2022
2021
Investor loans secured by real
estate
CRE non-owner-occupied
$
2,660,321
$
2,771,272
$
2,788,715
$
2,774,650
$
2,771,137
Multifamily
6,112,026
6,199,581
6,188,086
6,041,085
5,891,934
Construction and land
399,034
373,194
331,734
303,811
277,640
SBA secured by real estate (1)
42,135
42,998
44,199
42,642
46,917
Total investor loans secured by real
estate
9,213,516
9,387,045
9,352,734
9,162,188
8,987,628
Business loans secured by real estate
(2)
CRE owner-occupied
2,432,163
2,477,530
2,486,747
2,391,984
2,251,014
Franchise real estate secured
378,057
383,468
387,683
384,267
380,381
SBA secured by real estate (3)
61,368
64,002
67,191
68,466
69,184
Total business loans secured by real
estate
2,871,588
2,925,000
2,941,621
2,844,717
2,700,579
Commercial loans (4)
Commercial and industrial
2,160,948
2,164,623
2,295,421
2,242,632
2,103,112
Franchise non-real estate secured
404,791
409,773
415,830
388,322
392,576
SBA non-real estate secured
11,100
11,557
11,008
10,761
11,045
Total commercial loans
2,576,839
2,585,953
2,722,259
2,641,715
2,506,733
Retail loans
Single family residential (5)
72,997
75,176
77,951
79,978
95,292
Consumer
3,284
3,761
4,130
5,157
5,665
Total retail loans
76,281
78,937
82,081
85,135
100,957
Loans held for investment before basis
adjustment (6)
14,738,224
14,976,935
15,098,695
14,733,755
14,295,897
Basis adjustment associated with fair
value hedge (7)
(61,926
)
(68,124
)
(51,087
)
—
—
Loans held for investment
14,676,298
14,908,811
15,047,608
14,733,755
14,295,897
Allowance for credit losses for loans held
for investment
(195,651
)
(195,549
)
(196,075
)
(197,517
)
(197,752
)
Loans held for investment, net
$
14,480,647
$
14,713,262
$
14,851,533
$
14,536,238
$
14,098,145
Loans held for sale, at lower of cost or
fair value
$
2,643
$
2,163
$
2,957
$
11,646
$
10,869
____________________
(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 $54.8 million, $59.0 million, $63.6
million, $71.2 million, and $77.1 million as of December 31, 2022,
September 30, 2022, June 30, 2022, March 31, 2022, and December 31,
2021 respectively.
(7)
Represents the basis adjustment
associated with the application of hedge accounting on certain
loans.
PACIFIC PREMIER BANCORP, INC.
AND SUBSIDIARIES
ASSET QUALITY
INFORMATION
(Unaudited)
December 31,
September 30,
June 30,
March 31,
December 31,
(Dollars in
thousands)
2022
2022
2022
2022
2021
Asset Quality
Nonperforming loans
$
30,905
$
60,464
$
44,445
$
55,309
$
31,273
Other real estate owned
—
—
—
—
—
Nonperforming assets
$
30,905
$
60,464
$
44,445
$
55,309
$
31,273
Total classified assets (1)
$
149,304
$
110,143
$
106,153
$
122,528
$
121,827
Allowance for credit losses
195,651
195,549
196,075
197,517
197,752
Allowance for credit losses as a percent
of total nonperforming loans
633
%
323
%
441
%
357
%
632
%
Nonperforming loans as a percent of loans
held for investment
0.21
0.41
0.30
0.38
0.22
Nonperforming assets as a percent of total
assets
0.14
0.28
0.20
0.26
0.15
Classified loans to total loans held for
investment
1.02
0.74
0.71
0.83
0.85
Classified assets to total assets
0.69
0.51
0.48
0.57
0.58
Net loan charge-offs (recoveries) for the
quarter ended
$
3,797
$
1,072
$
5,245
$
446
$
(981
)
Net loan charge-offs (recoveries) for the
quarter to average total loans
0.03
%
0.01
%
0.04
%
—
%
(0.01
)%
Allowance for credit losses to loans held
for investment (2)
1.33
1.31
1.30
1.34
1.38
Delinquent Loans:
30 - 59 days
$
20,538
$
1,484
$
6,915
$
25,332
$
1,395
60 - 89 days
185
6,535
—
74
—
90+ days
22,625
33,238
29,360
18,245
18,100
Total delinquency
$
43,348
$
41,257
$
36,275
$
43,651
$
19,495
Delinquency as a percent of loans held for
investment
0.30
%
0.28
%
0.24
%
0.30
%
0.14
%
____________________
(1)
Includes substandard loans and
other real estate owned.
(2)
At December 31, 2022, 26% of
loans held for investment include a fair value net discount of
$54.8 million, or 0.37% of loans held for investment. At September
30, 2022, 27% of loans held for investment include a fair value net
discount of $59.0 million, or 0.39% of loans held for investment.
At June 30, 2022, 29% of loans held for investment include a fair
value net discount of $63.6 million, or 0.42% of loans held for
investment. At March 31, 2022, 32% of loans held for investment
include a fair value net discount $71.2 million, or 0.48% of loans
held for investment. At December 31, 2021, 36% of loans held for
investment include a fair value net discount of $77.1 million, or
0.54% of loans held for investment.
PACIFIC PREMIER BANCORP, INC.
AND SUBSIDIARIES
NONACCRUAL LOANS (1)
(Unaudited)
(Dollars in
thousands)
Collateral Dependent
Loans
ACL
Non- Collateral Dependent
Loans
ACL
Total Nonaccrual Loans
Nonaccrual Loans With No
ACL
December 31, 2022
Investor loans secured by real
estate
CRE non-owner-occupied
$
4,429
$
—
$
—
$
—
$
4,429
$
4,429
Multifamily
8,780
—
—
—
8,780
8,780
SBA secured by real estate (2)
533
—
—
—
533
533
Total investor loans secured by real
estate
13,742
—
—
—
13,742
13,742
Business loans secured by real estate
(3)
CRE owner-occupied
11,475
1,742
—
—
11,475
9,733
SBA secured by real estate (4)
1,191
—
—
—
1,191
1,191
Total business loans secured by real
estate
12,666
1,742
—
—
12,666
10,924
Commercial loans (5)
Commercial and industrial
3,908
—
—
—
3,908
3,908
SBA not secured by real estate
589
—
—
—
589
589
Total commercial loans
4,497
—
—
—
4,497
4,497
Totals nonaccrual loans
$
30,905
$
1,742
$
—
$
—
$
30,905
$
29,163
____________________
(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.
PACIFIC PREMIER BANCORP, INC.
AND SUBSIDIARIES
PAST DUE STATUS
(Unaudited)
Days Past Due
(Dollars in
thousands)
Current
30-59
60-89
90+
Total
December 31, 2022
Investor loans secured by real
estate
CRE non-owner-occupied
$
2,655,892
$
—
$
—
$
4,429
$
2,660,321
Multifamily
6,103,246
2,723
—
6,057
6,112,026
Construction and land
399,034
—
—
—
399,034
SBA secured by real estate (1)
42,135
—
—
—
42,135
Total investor loans secured by real
estate
9,200,307
2,723
—
10,486
9,213,516
Business loans secured by real
estate (2)
CRE owner-occupied
2,424,174
1,434
—
6,555
2,432,163
Franchise real estate secured
370,984
7,073
—
—
378,057
SBA secured by real estate (3)
60,177
—
104
1,087
61,368
Total business loans secured by real
estate
2,855,335
8,507
104
7,642
2,871,588
Commercial loans (4)
Commercial and industrial
2,152,302
4,657
81
3,908
2,160,948
Franchise non-real estate secured
401,199
3,592
—
—
404,791
SBA not secured by real estate
10,511
—
—
589
11,100
Total commercial loans
2,564,012
8,249
81
4,497
2,576,839
Retail loans
Single family residential (5)
71,940
1,057
—
—
72,997
Consumer loans
3,282
2
—
—
3,284
Total retail loans
75,222
1,059
—
—
76,281
Loans held for investment before basis
adjustment (6)
$
14,694,876
$
20,538
$
185
$
22,625
$
14,738,224
____________________
(1)
SBA loans that are collateralized
by hotel/motel real property.
(2)
Loans to businesses that are
collateralized by real estate where the operating cash flow of the
business is the primary source of repayment.
(3)
SBA loans that are collateralized
by real property other than hotel/motel real property.
(4)
Loans to businesses where the
operating cash flow of the business is the primary source of
repayment.
(5)
Single family residential
includes home equity lines of credit, as well as second trust
deeds.
(6)
Excludes the basis adjustment of
$61.9 million to the carrying amount of certain loans included in
fair value hedging relationships.
PACIFIC PREMIER BANCORP, INC.
AND SUBSIDIARIES
CREDIT RISK GRADES
(Unaudited)
(Dollars in
thousands)
Pass
Special Mention
Substandard
Total Gross
Loans
December 31, 2022
Investor loans secured by real
estate
CRE non-owner-occupied
$
2,647,607
$
7,487
$
5,227
$
2,660,321
Multifamily
6,089,836
12,667
9,523
6,112,026
Construction and land
399,034
—
—
399,034
SBA secured by real estate (1)
33,161
—
8,974
42,135
Total investor loans secured by real
estate
9,169,638
20,154
23,724
9,213,516
Business loans secured by real estate
(2)
CRE owner-occupied
2,363,719
2,351
66,093
2,432,163
Franchise real estate secured
352,645
18,036
7,376
378,057
SBA secured by real estate (3)
55,865
118
5,385
61,368
Total business loans secured by real
estate
2,772,229
20,505
78,854
2,871,588
Commercial loans (4)
Commercial and industrial
2,093,726
31,273
35,949
2,160,948
Franchise non-real estate secured
368,013
27,583
9,195
404,791
SBA not secured by real estate
9,550
—
1,550
11,100
Total commercial loans
2,471,289
58,856
46,694
2,576,839
Retail loans
Single family residential (5)
72,992
—
5
72,997
Consumer loans
3,257
—
27
3,284
Total retail loans
76,249
—
32
76,281
Loans held for investment before basis
adjustment (6)
$
14,489,405
$
99,515
$
149,304
$
14,738,224
____________________
(1)
SBA loans that are collateralized
by hotel/motel real property.
(2)
Loans to businesses that are
collateralized by real estate where the operating cash flow of the
business is the primary source of repayment.
(3)
SBA loans that are collateralized
by real property other than hotel/motel real property.
(4)
Loans to businesses where the
operating cash flow of the business is the primary source of
repayment.
(5)
Single family residential
includes home equity lines of credit, as well as second trust
deeds.
(6)
Excludes the basis adjustment of
$61.9 million to the carrying amount of certain loans included in
fair value hedging relationships.
PACIFIC PREMIER BANCORP, INC. AND
SUBSIDIARIES GAAP to NON-GAAP RECONCILIATIONS
(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 and merger-related expense, where
applicable, 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
Year Ended
December 31,
September 30,
December 31,
December 31,
December 31,
(Dollars in
thousands)
2022
2022
2021
2022
2021
Net income
$
73,673
$
73,363
$
84,831
$
283,743
$
339,889
Plus: amortization of intangible assets
expense
3,440
3,472
3,880
13,983
15,936
Less: amortization of intangible assets
expense tax adjustment (1)
978
991
1,107
3,987
4,556
Net income for average tangible common
equity
76,135
75,844
87,604
293,739
351,269
Plus: merger-related expense
—
—
—
—
5
Less: merger-related expense tax
adjustment (1)
—
—
—
—
1
Net income for average tangible common
equity excluding merger-related expense
$
76,135
$
75,844
$
87,604
$
293,739
$
351,273
Average stockholders' equity
$
2,751,161
$
2,775,124
$
2,851,000
$
2,788,543
$
2,798,593
Less: average intangible assets
57,624
61,101
71,897
62,833
77,817
Less: average goodwill
901,312
901,312
901,312
901,312
900,458
Average tangible common equity
$
1,792,225
$
1,812,711
$
1,877,791
$
1,824,398
$
1,820,318
Return on average equity (annualized)
10.71
%
10.57
%
11.90
%
10.18
%
12.14
%
Return on average tangible common equity
(annualized)
16.99
%
16.74
%
18.66
%
16.10
%
19.30
%
Return on average tangible common equity
excluding merger-related expense
16.99
%
16.74
%
18.66
%
16.10
%
19.30
%
____________________
(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 expense, where applicable, from the 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
Year Ended
December 31,
September 30,
December 31,
December 31,
December 31,
(Dollars in
thousands)
2022
2022
2021
2022
2021
Interest income
$
217,781
$
199,025
$
177,006
$
768,578
$
696,739
Interest expense
36,385
17,913
6,287
71,466
34,365
Net interest income
181,396
181,112
170,719
697,112
662,374
Noninterest income
20,497
20,164
27,281
88,748
107,850
Revenue
201,893
201,276
198,000
785,860
770,224
Noninterest expense
99,182
100,866
97,252
396,670
380,277
Plus: merger-related expense
—
—
—
—
5
Pre-provision net revenue
102,711
100,410
100,748
389,190
389,952
Pre-provision net revenue (annualized)
$
410,844
$
401,640
$
402,992
$
389,190
$
389,952
Average assets
$
21,728,933
$
21,687,436
$
20,867,005
$
21,513,428
$
20,492,402
Pre-provision net revenue on average
assets
0.47
%
0.46
%
0.48
%
1.81
%
1.90
%
Pre-provision net revenue on average
assets (annualized)
1.89
%
1.85
%
1.93
%
1.81
%
1.90
%
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.
December 31,
September 30,
June 30,
March 31,
December 31,
(Dollars in
thousands, except per share data)
2022
2022
2022
2022
2021
Total stockholders' equity
$
2,798,389
$
2,735,396
$
2,755,219
$
2,783,018
$
2,886,311
Less: intangible assets
956,900
960,340
963,812
967,290
970,883
Tangible common equity
$
1,841,489
$
1,775,056
$
1,791,407
$
1,815,728
$
1,915,428
Total assets
$
21,688,017
$
21,619,201
$
21,993,919
$
21,622,296
$
21,094,429
Less: intangible assets
956,900
960,340
963,812
967,290
970,883
Tangible assets
$
20,731,117
$
20,658,861
$
21,030,107
$
20,655,006
$
20,123,546
Tangible common equity ratio
8.88
%
8.59
%
8.52
%
8.79
%
9.52
%
Common shares issued and outstanding
95,021,760
95,016,767
94,976,605
94,945,849
94,389,543
Book value per share
$
29.45
$
28.79
$
29.01
$
29.31
$
30.58
Less: intangible book value per share
10.07
10.11
10.15
10.19
10.29
Tangible book value per share
$
19.38
$
18.68
$
18.86
$
19.12
$
20.29
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,
nonrecurring nonaccrual interest adjustments, and gain (loss) on
interest rate contract in fair value hedging relationships 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
Year Ended
December 31,
September 30,
December 31,
December 31,
December 31,
(Dollars in
thousands)
2022
2022
2021
2022
2021
Net interest income
$
181,396
$
181,112
$
170,719
$
697,112
$
662,374
Less: scheduled accretion income
2,179
2,377
3,097
10,039
13,874
Less: accelerated accretion income
1,358
2,269
4,770
11,628
22,792
Less: premium amortization on CD
30
39
183
225
3,266
Less: nonrecurring nonaccrual interest
adjustments
(111
)
(848
)
349
(1,267
)
(544
)
Less: gain (loss) on fair value hedging
relationships
8,004
4,240
(819
)
10,705
(914
)
Core net interest income
169,936
173,035
163,139
665,782
623,900
Average interest-earning assets
$
19,944,656
$
19,929,636
$
19,173,458
$
19,746,829
$
18,897,234
Net interest margin
3.61
%
3.61
%
3.53
%
3.53
%
3.51
%
Core net interest margin
3.38
%
3.44
%
3.38
%
3.37
%
3.30
%
Efficiency ratio is a non-GAAP financial measure derived from
GAAP-based amounts. This figure represents the ratio of noninterest
expense, less amortization of intangible assets and merger-related
expense, where applicable, to the sum of net interest income before
provision for credit losses and total noninterest income, less gain
(loss) from investment securities and other income - security
recoveries, and net 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
Year Ended
December 31,
September 30,
December 31,
December 31,
December 31,
(Dollars in
thousands)
2022
2022
2021
2022
2021
Total noninterest expense
$
99,182
$
100,866
$
97,252
$
396,670
$
380,277
Less: amortization of intangible
assets
3,440
3,472
3,880
13,983
15,936
Less: merger-related expense
—
—
—
—
5
Noninterest expense, adjusted
$
95,742
$
97,394
$
93,372
$
382,687
$
364,336
Net interest income before provision for
credit losses
$
181,396
$
181,112
$
170,719
$
697,112
$
662,374
Add: total noninterest income
20,497
20,164
27,281
88,748
107,850
Less: net (loss) gain from investment
securities
—
(393
)
3,585
1,710
16,906
Less: other income - security
recoveries
—
—
1
—
10
Less: net loss from debt
extinguishment
—
—
—
—
(180
)
Revenue, adjusted
$
201,893
$
201,669
$
194,414
$
784,150
$
753,488
Efficiency ratio
47.4
%
48.3
%
48.0
%
48.8
%
48.4
%
Cost of core deposits is a non-GAAP financial measure derived
from GAAP-based amounts. Cost of core deposits is calculated as the
ratio of core deposit interest expense to average core deposits. We
calculate core deposit interest expense by excluding interest
expense for certificates of deposit and brokered deposits from
total deposit expense, and we calculate average core deposits by
excluding certificates of deposit and brokered deposits from total
deposits. Management believes cost of core deposits is a useful
measure to assess the Company's deposit base, including its
potential volatility.
Three Months Ended
Year Ended
December 31,
September 30,
December 31,
December 31,
December 31,
(Dollars in
thousands)
2022
2022
2021
2022
2021
Total deposits interest expense
$
25,865
$
9,873
$
1,694
$
40,093
$
11,817
Less: certificates of deposit interest
expense
3,941
1,420
517
6,498
3,332
Less: brokered deposits interest
expense
9,965
3,827
1
14,120
149
Core deposits expense
$
11,959
$
4,626
$
1,176
$
19,475
$
8,336
Total average deposits
$
17,608,783
$
17,732,822
$
17,383,128
$
17,594,941
$
16,983,299
Less: average certificates of deposit
975,958
835,645
1,084,326
944,963
1,248,956
Less: average brokered deposits
1,283,567
703,848
5,552
523,530
35,194
Average core deposits
$
15,349,258
$
16,193,329
$
16,293,250
$
16,126,448
$
15,699,149
Cost of core deposits
0.31
%
0.11
%
0.03
%
0.12
%
0.05
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230126005366/en/
Pacific Premier Bancorp, Inc. Steven R. Gardner Chairman, Chief
Executive Officer, and President (949) 864-8000 Ronald J. Nicolas,
Jr. Senior Executive Vice President and Chief Financial Officer
(949) 864-8000 Matthew J. Lazzaro Senior Vice President, Director
of Investor Relations (949) 243-1082
Pacific Premier Bancorp (NASDAQ:PPBI)
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Pacific Premier Bancorp (NASDAQ:PPBI)
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