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8-K - 8-K - PACIFIC PREMIER BANCORP INCppbi_8-kxearningsx2016q3.htm



Exhibit 99.1

Pacific Premier Bancorp, Inc. Announces Third Quarter 2016 Results (Unaudited)
 
Third Quarter 2016 Summary
 
Diluted earnings per share of $0.33 and net income of $9.2 million
Total loan growth of $169 million, or 23% annualized
Non-performing assets to total assets of 0.17%
Non-maturity deposit growth of $176 million, or 30% annualized
Non-interest bearing deposits account for 37.9% of total deposits, highest in company history
Total revenues increase to $45 million, or 28% annualized
Core net interest margin of 4.18%
ROAA and ROATCE of 1.00% and 11.52%, respectively
Tangible book value per share increased $0.35 to $12.22
Efficiency ratio of 57%

Irvine, Calif., October 19, 2016 -- Pacific Premier Bancorp, Inc. (NASDAQ: PPBI) (the “Company”), the holding company of Pacific Premier Bank (the “Bank”), reported net income for the third quarter of 2016 of $9.2 million, or $0.33 per diluted share, compared with net income of $10.4 million, or $0.37 per diluted share, for the second quarter of 2016 and net income of $7.8 million, or $0.36 per diluted share, for the third quarter of 2015.

For the three months ended September 30, 2016, the Company’s return on average assets was 1.00% and return on average tangible common equity was 11.52%. For the three months ended June 30, 2016, the Company's return on average assets was 1.17% and the return on average tangible common equity was 13.48%. For the three months ended September 30, 2015, the Company's return on average assets was 1.19% and its return on average tangible common equity was 14.25%.

Steve R. Gardner, Chairman and Chief Executive Officer of the Company, commented on the results, “We are disappointed with our level of earnings this quarter, as higher credit costs and non-recurring, non-interest expenses undermined the strong growth we had in both loans and deposits.
“Following the Security Bank acquisition, we continue to see improvement in our ability to attract new commercial customers. We generated $322 million in new loan commitments in the third quarter, a record level for the Bank. Our loan production is well diversified with strong growth generated in all of our major portfolios. The new client acquisition activity is also driving strong inflows of core deposits, with the largest increases coming in non-interest bearing deposits. We continue to execute very well on our efforts to build a highly diversified loan portfolio and a low cost deposit base.
“Our credit costs were elevated this quarter, which was primarily driven by a specific reserve of $2.0 million established for one commercial credit that deteriorated rapidly after several years of good performance. Aside from this one issue, we continue to see positive credit trends in the loan portfolio, as nonperforming assets to total assets was 17 basis points and delinquency as a percent of total loans was just 18 basis points.
“We recorded an aggregate of approximately $1.4 million of one-time costs to certain non-interest expense items in the third quarter related primarily to compensation, data processing and marketing expenses, which resulted in higher than expected non-interest expense. Excluding these items, our non-interest expense would have been in the $24 million to $25 million range, which is in line with our expected quarterly non-interest expense going forward for the foreseeable future. Our third quarter non-interest expense, excluding these one-time costs, reflects the full quarter impact of the additions we have made throughout the organization in 2016 to strengthen our infrastructure and upgrade personnel in key areas such as business development, finance and compliance.
“Following the investments we have made in 2016, we believe that we are well positioned to manage the continued growth of the Bank and that our business development capabilities are strong. As we continue to drive quality balance sheet growth, we believe we will see improved efficiencies and stronger profitability,” said Mr. Gardner.





FINANCIAL HIGHLIGHTS
 
 
Three Months Ended
 
 
September 30,
 
June 30,
 
September 30,
 
 
2016
 
2016
 
2015
Financial Highlights
 
(dollars in thousands, except per share data)
Net income
 
$
9,227

 
$
10,369

 
$
7,837

Diluted EPS
 
$
0.33

 
$
0.37

 
$
0.36

Return on average assets
 
1.00
%
 
1.17
%
 
1.19
%
Adjusted return on average assets (1)(2)
 
1.00
%
 
1.20
%
 
1.25
%
Adjusted net income (1)(2)
 
$
9,227

 
$
10,676

 
$
8,237

Return on average tangible common equity (2)
 
11.52
%
 
13.48
%
 
14.25
%
Adjusted return on average tangible common equity (1)(2)
 
11.52
%
 
13.86
%
 
14.96
%
Net interest margin
 
4.41
%
 
4.48
%
 
4.22
%
Cost of deposits
 
0.28
%
 
0.28
%
 
0.32
%
Efficiency ratio (3)
 
57.0
%
 
54.4
%
 
53.6
%
 
 
 
 
 
 
 
(1) Adjusted to exclude merger related, net of tax.
(2) A reconciliation of the non-GAAP measures of average tangible common equity to the GAAP measures of common stockholders' equity is set forth at the end of this press release.
(3) Represents the ratio of non-interest expense less other real estate owned operations, core deposit intangible amortization and non-recurring merger related to the sum of net interest income before provision for loan losses and total non-interest income, less gains/(loss) on sale of securities and other-than-temporary impairment recovery/(loss) on investment securities.

INCOME STATEMENT HIGHLIGHTS

Net Interest Income and Net Interest Margin
 
Net interest income totaled $39.0 million in the third quarter of 2016, an increase of $1.4 million or 3.9% from the second quarter of 2016. The increase in net interest income reflected an increase in average interest-earning assets of $147 million, partially offset by a decrease in accretion income. The increase in average interest-earning assets during the third quarter of 2016 was primarily related to record organic loan originations and the purchase of $83 million of multi-family loans.

The decrease in the net interest margin from 4.48% to 4.41% was primarily due to the decrease in accretion income. Excluding the impact of accretion, the portfolio core net interest margin was 4.18% in the third quarter of 2016 compared to 4.19% in the second quarter of 2016, with accretion contributing 23 basis points in the third quarter of 2016 as compared to 29 basis points in the second quarter of 2016.

Net interest income for the third quarter of 2016 increased $12.3 million or 46.1% compared to the third quarter of 2015. The increase was related to an increase in average interest-earning assets of $1.0 billion, which resulted primarily from our organic loan growth since the end of the third quarter of 2015 and our acquisition of Security during the first quarter of 2016. Our net interest margin for the third quarter of 2016 increased 19 basis points to 4.41% from the prior year. The expansion of the net interest margin was driven by a 10 basis point increase in the yield on earning assets, and a 10 basis point decrease in cost of funds.






Net interest margin information is presented in the following table for the periods indicated.
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCES AND YIELD DATA
 
 
 
 
 
Three Months Ended
 
Three Months Ended
 
Three Months Ended
 
 
September 30, 2016
 
June 30, 2016
 
September 30, 2015
 
 
Average Balance
 
Interest
 
Average
 Yield/
 Cost
 
Average Balance
 
Interest
 
Average
Yield/
Cost
 
Average Balance
 
Interest
 
Average Yield/ Cost
Assets
 
(dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
201,140

 
$
232

 
0.46
%
 
$
177,603

 
$
189

 
0.43
%
 
$
124,182

 
$
63

 
0.20
%
Investment securities
 
316,253

 
1,710

 
2.16

 
299,049

 
1,650

 
2.21

 
306,623

 
1,749

 
2.28

Loans receivable, net (1)
 
2,998,153

 
40,487

 
5.37

 
2,892,236

 
39,035

 
5.43

 
2,080,281

 
27,935

 
5.33

Total interest-earning assets
 
$
3,515,546

 
$
42,429

 
4.80
%
 
$
3,368,888

 
$
40,874

 
4.88
%
 
$
2,511,086

 
$
29,747

 
4.70
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposits
 
$
1,921,741

 
$
2,136

 
0.44
%
 
$
1,864,253

 
$
2,010

 
0.43
%
 
$
1,464,577

 
$
1,719

 
0.47
%
Borrowings
 
167,531

 
1,284

 
3.05

 
170,065

 
1,303

 
3.08

 
190,408

 
1,332

 
2.77

Total interest-bearing liabilities
 
$
2,089,272

 
$
3,420

 
0.65
%
 
$
2,034,318

 
$
3,313

 
0.66
%
 
$
1,654,985

 
$
3,051

 
0.73
%
Non-interest bearing deposits
 
$
1,134,318

 
 
 
 
 
$
1,060,097

 
 
 
 
 
$
674,795

 
 
 
 
Net interest income
 
 
 
$
39,009

 
 
 
 
 
$
37,561

 
 
 
 
 
$
26,696

 
 
Net interest margin (2)
 
 

 
 

 
4.41
%
 
 
 
 
 
4.48
%
 
 
 
 
 
4.22
%
 
(1) Average balance includes nonperforming loans and is net of deferred loan origination fees, unamortized discounts and premiums.
(2) Represents net interest income divided by average interest-earning assets.
 
 

 
 

 
 

 
 



Provision for Loan Losses

A provision for loan losses was recorded for the current quarter in the amount of $4.0 million, compared with a provision for loan losses of $1.6 million in the quarter ending June 30, 2016. Specific reserves on two loans totaling $2.4 million were recorded in the current quarter with the remaining $1.6 million in provision primarily related to growth in the loan portfolio. Net loan charge-offs were $1.1 million for the third quarter.

Non-interest income
 
Non-interest income for the third quarter of 2016 was $6.0 million, an increase of $1.5 million or 34.1% from the second quarter of 2016. The increase from the second quarter of 2016 was primarily related to a $1.0 million increase in net gain from the sale of loans, as well as a $0.5 million increase in recoveries on previously charged-off, acquired loans. During the current quarter, $38.8 million in SBA loans and other loans were sold compared to $22.7 million in the prior quarter.

Compared to the third quarter of 2015, non-interest income for the third quarter of 2016 increased $1.6 million or 36.3%. The increase includes an increase of $0.6 million in net gain from sales of loans, a higher net gain from the sales of investment securities of $0.5 million, a $0.3 million increase in other income and a $0.2 million increase in deposit fees.






 
 
Three Months Ended
 
 
September 30,
 
June 30,
 
September 30,
 
 
2016
 
2016
 
2015
NON-INTEREST INCOME
 
(dollars in thousands)
Loan servicing fees
 
$
288

 
$
257

 
$
248

Deposit fees
 
829

 
817

 
629

Net gain from sales of loans
 
3,122

 
2,124

 
2,544

Net gain from sales of investment securities
 
512

 
532

 
38

Other-than-temporary-impairment recovery/(loss) on investment securities
 
2

 

 

Other income
 
1,215

 
720

 
919

Total non-interest income
 
$
5,968

 
$
4,450

 
$
4,378


 Non-interest Expense
 
Non-interest expense totaled $25.9 million for the third quarter of 2016, an increase of $2.2 million or 9.1%, compared with the second quarter of 2016. The increase was primarily driven by higher compensation costs, specifically incentive compensation including stock-based incentives, increased data processing costs, and higher marketing costs.

In comparison to the third quarter of 2015, non-interest expense grew by $8.5 million or 48.8%. The increase in expense was primarily related to the additional costs from the personnel and branches retained from the acquisition of Security, combined with our continued investment in personnel to support our organic growth in loans and deposits.

 
 
Three Months Ended
 
 
September 30,
 
June 30,
 
September 30,
 
 
2016
 
2016
 
2015
NON-INTEREST EXPENSE
 
(dollars in thousands)
Compensation and benefits
 
$
14,179

 
$
13,098

 
$
9,066

Premises and occupancy
 
2,633

 
2,559

 
2,120

Data processing and communications
 
1,223

 
887

 
681

Other real estate owned operations, net
 
5

 
(15
)
 
9

FDIC insurance premiums
 
442

 
401

 
355

Legal, audit and professional expense
 
676

 
446

 
505

Marketing expense
 
1,591

 
775

 
567

Office and postage expense
 
612

 
573

 
525

Loan expense
 
534

 
540

 
370

Deposit expense
 
1,315

 
1,196

 
917

Merger related expense
 

 
497

 
400

CDI amortization
 
525

 
645

 
344

Other expense
 
2,125

 
2,093

 
1,515

     Total non-interest expense
 
$
25,860

 
$
23,695

 
$
17,374







 
 
Three Months Ended
 
 
September 30,
 
June 30,
 
September 30,
 
 
2016
 
2016
 
2015
Operating Metrics
 
 
Efficiency ratio (1)
 
57.0
%
 
54.4
%
 
53.6
%
Non-interest expense to average total assets (2)
 
2.74
%
 
2.59
%
 
2.58
%
Full-time equivalent employees, at period end
 
448

 
438

 
332

 
 
 
 
 
 
 
(1) Represents the ratio of non-interest expense less other real estate owned operations, core deposit intangible amortization and non-recurring merger related to the sum of net interest income before provision for loan losses and total non-interest income less, gains/(loss) on sale of securities and other-than-temporary impairment recovery/(loss) on investment securities.
(2) Adjusted to exclude CDI amortization.

Income Tax
 
For the third quarter of 2016, our effective tax rate was 38.9%, compared with 38.0% for the second quarter of 2016 and 38.0% for the third quarter of 2015. The increase from the second quarter reflects a true-up to the Company's anticipated full year tax rate of 39%.





BALANCE SHEET HIGHLIGHTS

Loans

Loans held for investment totaled $3.09 billion at September 30, 2016, an increase of $170 million or 5.8% from June 30, 2016, and an increase of $923 million or 42.6% from September 30, 2015. The increase from June 30, 2016, was primarily due to $322 million in organic loan originations and $85.4 million in loan purchases, partially offset by $173 million in principal payments and $38.8 million in loan sales. The total end of period weighted average interest rate on loans, excluding fees and discounts, at September 30, 2016 was 4.80%, compared to 4.84% at June 30, 2016 and 4.90% at September 30, 2015.
 
Loan activity during the third quarter of 2016 included organic loan originations of $322 million, including commercial real estate loans of $65.1 million, commercial and industrial loan originations of $64.1 million, construction loan originations of $52.9 million, franchise loan originations of $48.4 million and SBA loan originations of $43.2 million. At September 30, 2016 our loan to deposit ratio was 101.0%, compared with 99.6% and 101.3% at June 30, 2016 and September 30, 2015, respectively.

 
 
Three Months Ended
 
 
September 30,
 
June 30,
 
September 30,
 
 
2016
 
2016
 
2015
LOAN ACTIVITY
 
(dollars in thousands)
Loans originated
 
$
322,405

 
$
298,742

 
$
248,815

Loans purchased
 
85,395

 

 

Repayments
 
(172,815
)
 
(190,026
)
 
(127,475
)
Loans sold
 
(38,847
)
 
(22,746
)
 
(28,039
)
Change in undisbursed
 
(31,915
)
 
(17,208
)
 
(45,085
)
Other
 
4,890

 
3,260

 
1,080

Increase in total loans, gross
 
169,113

 
72,022

 
49,296

Change in allowance
 
(2,888
)
 
(500
)
 
(1,045
)
Increase in total loans, net
 
$
166,225

 
$
71,522

 
$
48,251







 
 
September 30,
 
June 30,
 
September 30,
 
 
2016
 
2016
 
2015
Loan Portfolio
 
(dollars in thousands)
Business loans:
 
 
 
 
 
 
Commercial and industrial
 
$
537,809

 
$
508,141

 
$
288,982

Franchise
 
431,618

 
403,855

 
295,965

Commercial owner occupied
 
460,068

 
443,060

 
302,556

SBA
 
92,195

 
86,076

 
70,191

Warehouse facilities
 

 

 
144,274

Real estate loans:
 
 
 
 

 
 
Commercial non-owner occupied
 
527,412

 
526,362

 
406,490

Multi-family
 
689,813

 
613,573

 
421,240

One-to-four family
 
101,377

 
106,538

 
78,781

Construction
 
231,098

 
215,786

 
141,293

Land
 
18,472

 
18,341

 
12,758

Other loans
 
5,678

 
5,822

 
5,017

 Total Gross Loans
 
3,095,540

 
2,927,554

 
2,167,547

Less Loans held for sale, net
 
9,009

 
10,116

 

Total gross loans held for investment
 
3,086,531

 
2,917,438

 
2,167,547

Less:
 
 

 
 

 
 

Deferred loan origination costs/(fees) and premiums/(discounts)
 
4,308

 
3,181

 
309

Allowance for loan losses
 
(21,843
)
 
(18,955
)
 
(16,145
)
Loans held for investment, net
 
$
3,068,996

 
$
2,901,664

 
$
2,151,711


Asset Quality and Allowance for Loan Losses
 
Non-performing assets totaled $6.4 million or 0.17% of total assets at September 30, 2016, an increase from $4.8 million or 0.13% of total assets at June 30, 2016. During the third quarter of 2016, non-performing loans increased $1.7 million to total $5.7 million primarily as a result of two loans, and other real estate owned remained unchanged at $0.7 million.
 
At September 30, 2016, the allowance for loan losses was $21.8 million, an increase of $2.9 million from June 30, 2016. Loan loss provision for the quarter was $4.0 million while net charge-offs were $1.1 million. The increase in the allowance for loan losses at September 30, 2016 was mainly attributable to $2.4 million of specific reserves for two credits and loan growth in certain segments of the loan portfolio.

At September 30, 2016, our allowance for loan losses as a percent of non-accrual loans was 381%, a decrease from 467% at June 30, 2016. The ratio of allowance for loan losses to total loans at September 30, 2016 was 0.70%, compared to 0.65% and 0.74% at June 30, 2016 and September 30, 2015. Including the loan fair market value discounts recorded in connection with our acquisitions, the allowance for loan losses to total gross loans ratio was 0.89% at September 30, 2016, compared with 0.89% at June 30, 2016 and 0.93% at September 30, 2015.






 
 
September 30,
 
June 30,
 
September 30,
 
 
2016
 
2016
 
2015
Asset Quality
 
(dollars in thousands)
Non-accrual loans
 
$
5,734

 
$
4,062

 
$
4,095

Other real estate owned
 
711

 
711

 
711

Non-performing assets
 
$
6,445

 
$
4,773

 
$
4,806

 
 
 
 
 
 
 
Allowance for loan losses
 
$
21,843

 
$
18,955

 
$
16,145

Allowance for loan losses as a percent of total non-performing loans
 
381
%
 
467
%
 
394
%
Non-performing loans as a percent of gross loans
 
0.18
%
 
0.14
%
 
0.19
%
Non-performing assets as a percent of total assets
 
0.17
%
 
0.13
%
 
0.18
%
Net loan charge-offs (recoveries) for the quarter ended
 
$
1,125

 
$
1,089

 
$
17

Net loan charge-offs for quarter to average total loans, net
 
0.04
%
 
0.04
%
 
%
Allowance for loan losses to gross loans
 
0.70
%
 
0.65
%
 
0.74
%
Delinquent Loans:
 
 

 
 
 
 
30 - 59 days
 
$
1,042

 
$
1,144

 
$
702

60 - 89 days
 
1,990

 
2,487

 
25

90+ days
 
2,646

 
1,797

 
2,214

Total delinquency
 
$
5,678

 
$
5,428

 
$
2,941

Delinquency as a % of total gross loans
 
0.18
%
 
0.19
%
 
0.14
%

Investment Securities

Investment securities available for sale totaled $313 million at September 30, 2016, an increase of $67.7 million from June 30, 2016, and $22.1 million from September 30, 2015. The increase in the third quarter was primarily the result of $96.9 million in securities purchased, partially offset by $16.1 million in securities sold.

 
 
Estimated Fair Value
 
 
September 30,
 
June 30,
 
September 30,
 
 
2016
 
2016
 
2015
Investment securities available for sale:
 
(dollars in thousands)
Corporate
 
$
23,330

 
$

 
$

Municipal bonds
 
116,838

 
118,799

 
130,004

Collateralized mortgage obligation
 
33,866

 
22,844

 

Mortgage-backed securities
 
139,166

 
103,828

 
161,143

Total securities available for sale
 
$
313,200

 
$
245,471

 
$
291,147

 
 
 
 
 
 
 
Investments held to maturity
 
$
9,004

 
$
9,390

 
$


Deposits

At September 30, 2016, deposits totaled $3.06 billion, an increase of $129 million or 4.4% from June 30, 2016 and $921 million or 43.0% from September 30, 2015. At September 30, 2016, non-maturity deposits totaled $2.49 billion, an increase of $176 million, or 7.62% from June 30, 2016 and an increase of $853 million or 52.2% from September 30, 2015. During the third quarter of 2016, deposit increases included $117 million in non-interest





bearing deposits and $57.6 million in money market/savings deposits, partially offset by decreases of $36.6 million in retail certificate deposits and $10.7 million in wholesale/brokered certificates of deposits. The increase in non-maturity deposits was primarily due to commercial relationship deposit increases and, to a lesser extent, higher homeowner's association ("HOA") deposits. Due to the increase in lower cost non-maturity deposits, certain retail and wholesale/brokered deposits were allowed to mature.
 
The weighted average cost of deposits for the three month period ending September 30, 2016 and June 30, 2016 was 0.28%, compared to 0.32% for the three month periods September 30, 2015.

 
 
September 30,
 
June 30,
 
September 30,
 
 
2016
 
2016
 
2015
Deposit Accounts
 
(dollars in thousands)
Non-interest bearing checking
 
$
1,160,394

 
$
1,043,361

 
$
680,937

Interest-bearing:
 
 
 
 
 
 
Checking
 
170,057

 
168,669

 
130,671

Money market/Savings
 
1,157,086

 
1,099,445

 
822,876

Retail certificates of deposit
 
384,083

 
420,673

 
383,481

Wholesale/brokered certificates of deposit
 
188,132

 
198,853

 
121,242

Total interest-bearing
 
1,899,358

 
1,887,640

 
1,458,270

Total deposits
 
$
3,059,752

 
$
2,931,001

 
$
2,139,207

 
 
 
 
 
 
 
Deposit Mix (% of total deposits)
 
 
 
 
 
 
Non-interest bearing deposits
 
37.9
%
 
35.6
%
 
31.8
%
Non-maturity deposits
 
81.3
%
 
78.9
%
 
76.4
%

Borrowings

At September 30, 2016, total borrowings amounted to $206 million, an increase of $15.0 million or 7.9% from June 30, 2016 and a decrease of $56.2 million from September 30, 2015. At September 30, 2016, total borrowings represented 5.48% of total assets, compared to 5.30% and 9.60%, as of June 30, 2016 and September 30, 2015, respectively.

 
September 30, 2016
 
June 30, 2016
 
September 30, 2015
 
Balance
 
Weighted
Average Rate
 
Balance
 
Weighted
Average Rate
 
Balance
 
Weighted
 Average Rate
 
(dollars in thousands)
FHLB advances
$
90,000

 
0.38
%
 
$
75,000

 
0.59
%
 
$
144,000

 
0.38
%
Reverse repurchase agreements
46,247

 
2.01
%
 
45,252

 
2.07
%
 
47,483

 
1.97
%
Subordinated debentures
69,353

 
5.35
%
 
70,310

 
5.35
%
 
70,310

 
5.35
%
Total borrowings
$
205,600

 
2.44
%
 
$
190,562

 
2.65
%
 
$
261,793

 
2.00
%
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average cost of
borrowings during the quarter
3.05
%
 
 

 
3.08
%
 
 

 
2.77
%
 
 

Borrowings as a percent of total assets
5.48
%
 
 

 
5.30
%
 
 

 
9.60
%
 
 







Capital Ratios
 
At September 30, 2016, our ratio of tangible common equity to total assets was 9.28%, with book value per share of $16.27 and tangible book value of $12.22 per share.
 
At September 30, 2016, the Bank exceeded all regulatory capital requirements with a ratio for tier 1 leverage capital of 11.03%, common equity tier 1 risk-based capital of 12.07%, tier 1 risk-based capital of 12.07% and total risk-based capital of 12.77%. These capital ratios exceeded the “well capitalized” standards defined by the federal banking regulators of 5.00% for tier 1 leverage capital, 6.5% for common equity tier 1 risk-based capital, 8.00% for tier 1 risk-based capital and 10.00% for total risk-based capital. At September 30, 2016, the Company had a ratio for tier 1 leverage capital of 9.80%, common equity tier 1 risk-based capital of 10.42%, tier 1 risk-based capital of 10.72% and total risk-based capital of 13.21%.

 
 
September 30,
 
June 30,
 
September 30,
 
 
2016
 
2016
 
2015
Capital Ratios
 
 
 
 
 
 
Pacific Premier Bank
 
 
Tier 1 leverage ratio
 
11.03
%
 
11.17
%
 
11.44
%
Common equity tier 1 risk-based capital ratio
 
12.07
%
 
12.32
%
 
12.54
%
Tier 1 risk-based capital ratio
 
12.07
%
 
12.32
%
 
12.54
%
Total risk-based capital ratio
 
12.77
%
 
12.94
%
 
13.25
%
Pacific Premier Bancorp, Inc.
 
 

 
 

 
 

Tier 1 leverage ratio
 
9.80
%
 
9.88
%
 
9.50
%
Common equity tier 1 risk-based capital ratio
 
10.42
%
 
10.58
%
 
10.02
%
Tier 1 risk-based capital ratio
 
10.72
%
 
10.90
%
 
10.40
%
Total risk-based capital ratio
 
13.21
%
 
13.45
%
 
13.65
%
Tangible common equity ratio
 
9.28
%
 
9.41
%
 
8.75
%
 
 
 
 
 
 
 
Share Data
 
 

 
 

 
 

Book value per share
 
$
16.27

 
$
15.94

 
$
13.52

Tangible book value per share
 
$
12.22

 
$
11.87

 
$
10.80

Closing stock price
 
$
26.46

 
$
24.00

 
$
20.32

Outstanding shares at period end
 
27,656,533

 
27,650,533

 
21,510,678









Conference Call and Webcast
 
The Company will host a conference call at 9:00 a.m. PT / 12:00 p.m. ET on October 19, 2016 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 October 26, 2016 at (877) 344-7529, conference ID 10094248.

About Pacific Premier Bancorp, Inc.

     Pacific Premier Bancorp, Inc. is the holding company for Pacific Premier Bank, one of the largest community banks headquartered in Southern California. Pacific Premier Bank is a business bank primarily focused on serving small and middle market businesses in the counties of Los Angeles, Orange, Riverside, San Bernardino and San Diego, California. Pacific Premier Bank offers a diverse range of lending products including commercial, commercial real estate, construction, and SBA loans, as well as specialty banking products for homeowners associations and franchise lending nationwide. Pacific Premier Bank serves its customers through its 16 full-service depository branches in Southern California located in the cities of Corona, Encinitas, Huntington Beach, Irvine, Los Alamitos, Murrieta, Newport Beach, Orange, Palm Desert, Palm Springs, Redlands, Riverside, San Bernardino, and San Diego.
 
FORWARD-LOOKING COMMENTS
 
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. 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, interest rate, market and monetary fluctuations; the timely development of competitive new products and services and the acceptance of these products and services by new and existing customers; the willingness of users to substitute competitors’ products and services for the Company’s products and services; the impact of changes in financial services policies, laws and regulations (including the Dodd-Frank Wall Street Reform and Consumer Protection Act) and of governmental efforts to restructure the U.S. financial regulatory system; technological changes; the effect of acquisitions that the Company may make, if any, including, without limitation, the failure to achieve the expected revenue growth and/or expense savings from its acquisitions; changes in the level of the Company’s nonperforming assets and charge-offs; any oversupply of inventory and deterioration in values of California real estate, both residential and commercial; the effect of changes in accounting policies and practices, as may be adopted from time-to-time by bank regulatory agencies, the Securities and Exchange Commission (“SEC”), the Public Company Accounting Oversight Board, the Financial Accounting Standards Board or other accounting standards setters; possible other-than-temporary impairment of securities held by us; changes in consumer spending, borrowing and savings habits; the effects of the Company’s lack of a diversified loan portfolio, including the risks of geographic and industry concentrations; ability to attract deposits and other sources of liquidity; 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; unanticipated regulatory or judicial proceedings; and the Company’s 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 2015 Annual Report on Form 10-K of Pacific Premier Bancorp, Inc. filed with the SEC and available at the SEC’s Internet site (http://www.sec.gov).
 





The Company specifically disclaims any obligation to update any factors or to publicly announce the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.

Contact:
 
Pacific Premier Bancorp, Inc.
 
Steve R. Gardner
Chairman & Chief Executive Officer
949.864.8000
 
Ronald J. Nicolas, Jr.
Senior Executive Vice President & CFO
949.864.8000





PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(dollars in thousands)
(Unaudited)
 
 
September 30,
 
June 30,
 
March 31,
 
December 31,
 
September 30,
ASSETS
 
2016
 
2016
 
2016
 
2015
 
2015
Cash and due from banks
 
$
18,557

 
$
15,444

 
$
18,624

 
$
14,935

 
$
102,235

Interest-bearing deposits with financial institutions
 
85,347

 
169,855

 
174,890

 
63,482

 
526

Cash and cash equivalents
 
103,904

 
185,299

 
193,514

 
78,417

 
102,761

Interest-bearing time deposits with financial institutions
 
3,944

 
3,944

 
3,944

 
1,972

 

Investments held to maturity, at amortized cost
 
8,900

 
9,292

 
9,590

 
9,642

 

Investment securities available for sale, at fair value
 
313,200

 
245,471

 
269,711

 
280,273

 
291,147

FHLB, FRB and other stock, at cost
 
29,966

 
26,984

 
27,103

 
22,292

 
22,490

Loans held for sale, at lower of cost or fair value
 
9,009

 
10,116

 
7,281

 
8,565

 

Loans held for investment
 
3,090,839

 
2,920,619

 
2,851,432

 
2,254,315

 
2,167,856

Allowance for loan losses
 
(21,843
)
 
(18,955
)
 
(18,455
)
 
(17,317
)
 
(16,145
)
Loans held for investment, net
 
3,068,996

 
2,901,664

 
2,832,977

 
2,236,998

 
2,151,711

Accrued interest receivable
 
11,642

 
12,143

 
11,862

 
9,315

 
9,083

Other real estate owned
 
711

 
711

 
1,161

 
1,161

 
711

Premises and equipment
 
11,314

 
11,014

 
11,963

 
9,248

 
9,044

Deferred income taxes, net
 
20,001

 
16,552

 
17,000

 
11,511

 
13,059

Bank owned life insurance
 
40,116

 
39,824

 
39,535

 
39,245

 
38,953

Intangible assets
 
9,976

 
10,500

 
11,145

 
7,170

 
7,514

Goodwill
 
101,939

 
101,939

 
101,939

 
50,832

 
50,832

Other assets
 
21,213

 
23,200

 
24,360

 
24,005

 
17,993

TOTAL ASSETS
 
$
3,754,831

 
$
3,598,653

 
$
3,563,085

 
$
2,790,646

 
$
2,715,298

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 

 


 
 
 
 
 
 
LIABILITIES:
 
 

 
 
 
 
 
 
 
 
Deposit accounts:
 
 

 
 
 
 
 
 
 
 
Non-interest-bearing checking
 
$
1,160,394

 
$
1,043,361

 
$
1,064,457

 
$
711,771

 
$
680,937

Interest-bearing:
 
 
 
 
 
 
 
 
 
 
Checking
 
170,057

 
168,669

 
160,707

 
134,999

 
130,671

Money market/savings
 
1,157,086

 
1,099,445

 
1,096,334

 
827,378

 
822,876

Retail certificates of deposit
 
384,083

 
420,673

 
455,637

 
365,911

 
383,481

Wholesale/brokered certificates of deposit
 
188,132

 
198,853

 
129,129

 
155,064

 
121,242

Total interest-bearing
 
1,899,358

 
1,887,640

 
1,841,807

 
1,483,352

 
1,458,270

Total deposits
 
3,059,752

 
2,931,001

 
2,906,264

 
2,195,123

 
2,139,207

FHLB advances and other borrowings
 
136,213

 
120,252

 
124,956

 
196,125

 
191,483

Subordinated debentures
 
69,353

 
70,310

 
70,310

 
70,310

 
70,310

Accrued expenses and other liabilities
 
39,548

 
36,460

 
32,661

 
30,108

 
23,531

TOTAL LIABILITIES
 
3,304,866

 
3,158,023

 
3,134,191

 
2,491,666

 
2,424,531

STOCKHOLDERS’ EQUITY:
 
 

 


 
 
 
 
 
 
Preferred stock
 

 

 

 

 

Common stock
 
273

 
273

 
273

 
215

 
215

Additional paid-in capital
 
343,233

 
342,388

 
341,660

 
221,487

 
220,992

Retained earnings
 
105,096

 
95,869

 
85,500

 
76,946

 
68,881

Accumulated other comprehensive income, net of tax
 
1,363

 
2,100

 
1,461

 
332

 
679

TOTAL STOCKHOLDERS’ EQUITY
 
449,965

 
440,630

 
428,894

 
298,980

 
290,767

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
 
$
3,754,831

 
$
3,598,653

 
$
3,563,085

 
$
2,790,646

 
$
2,715,298






PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands, except per share data)
(Unaudited)
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
June 30,
 
September 30,
 
September 30,
 
September 30,
 
 
2016
 
2016
 
2015
 
2016
 
2015
INTEREST INCOME
 
 

 
 

 
 

 
 
 
 
Loans
 
$
40,487

 
$
39,035

 
$
27,935

 
$
114,929

 
$
80,917

Investment securities and other interest-earning assets
 
1,942

 
1,839

 
1,812

 
5,879

 
5,527

Total interest income
 
42,429

 
40,874

 
29,747

 
120,808

 
86,444

INTEREST EXPENSE
 
 
 
 
 
 
 
 

 
 

Deposits
 
2,136

 
2,010

 
1,719

 
6,215

 
4,914

FHLB advances and other borrowings
 
314

 
324

 
339

 
963

 
1,121

Subordinated debentures
 
970

 
979

 
993

 
2,859

 
2,946

Total interest expense
 
3,420

 
3,313

 
3,051

 
10,037

 
8,981

NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES
 
39,009

 
37,561

 
26,696

 
110,771

 
77,463

PROVISION FOR LOAN LOSSES
 
4,013

 
1,589

 
1,062

 
6,722

 
4,725

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
 
34,996

 
35,972

 
25,634

 
104,049

 
72,738

NON-INTEREST INCOME
 
 
 
 
 
 
 
 

 
 

Loan servicing fees
 
288

 
257

 
248

 
769

 
156

Deposit fees
 
829

 
817

 
629

 
2,488

 
1,845

Net gain from sales of loans
 
3,122

 
2,124

 
2,544

 
7,152

 
5,265

Net gain from sales of investment securities
 
512

 
532

 
38

 
1,797

 
293

Other-than-temporary-impairment recovery/(loss) on investment securities
 
2

 

 

 
(205
)
 

Other income
 
1,215

 
720

 
919

 
3,279

 
2,669

Total non-interest income
 
5,968

 
4,450

 
4,378

 
15,280

 
10,228

NON-INTEREST EXPENSE
 
 
 
 
 
 
 
 

 
 

Compensation and benefits
 
14,179

 
13,098

 
9,066

 
39,017

 
27,439

Premises and occupancy
 
2,633

 
2,559

 
2,120

 
7,550

 
5,980

Data processing and communications
 
1,223

 
887

 
681

 
3,021

 
2,099

Other real estate owned operations, net
 
5

 
(15
)
 
9

 
(2
)
 
113

FDIC insurance premiums
 
442

 
401

 
355

 
1,225

 
1,032

Legal, audit and professional expense
 
676

 
446

 
505

 
1,987

 
1,687

Marketing expense
 
1,591

 
775

 
567

 
2,996

 
1,785

Office and postage expense
 
612

 
573

 
525

 
1,666

 
1,529

Loan expense
 
534

 
540

 
370

 
1,477

 
826

Deposit expense
 
1,315

 
1,196

 
917

 
3,530

 
2,704

Merger related expense
 

 
497

 
400

 
3,616

 
4,392

CDI amortization
 
525

 
645

 
344

 
1,514

 
1,002

Other expense
 
2,125

 
2,093

 
1,515

 
5,603

 
4,469

Total non-interest expense
 
25,860

 
23,695

 
17,374

 
73,200

 
55,057

NET INCOME BEFORE INCOME TAX
 
15,104

 
16,727

 
12,638

 
46,129

 
27,909

INCOME TAX
 
5,877

 
6,358

 
4,801

 
17,977

 
10,459

NET INCOME
 
$
9,227

 
$
10,369

 
$
7,837

 
$
28,152

 
$
17,450

EARNINGS PER SHARE
 
 
 
 
 
 
 
 

 
 

Basic
 
$
0.34

 
$
0.38

 
$
0.36

 
$
1.05

 
$
0.83

Diluted
 
$
0.33

 
$
0.37

 
$
0.36

 
$
1.03

 
$
0.82

WEIGHTED AVERAGE SHARES OUTSTANDING
 
 
 
 
 
 
 
 

 
 

Basic
 
27,387,123

 
27,378,930

 
21,510,678

 
26,776,140

 
21,037,345






Diluted
 
27,925,351

 
27,845,490

 
21,866,840

 
27,245,108

 
21,342,204






SELECTED FINANCIAL DATA

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCES AND YIELD DATA
 
 
 
 
 
Three Months Ended
 
Three Months Ended
 
Three Months Ended
 
 
September 30, 2016
 
June 30, 2016
 
September 30, 2015
 
 
Average Balance
 
Interest
 
Average Yield/Cost
 
Average Balance
 
Interest
 
Average Yield/Cost
 
Average Balance
 
Interest
 
Average Yield/Cost
Assets
 
(dollars in thousands)
Interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
201,140

 
$
232

 
0.46
%
 
$
177,603

 
$
189

 
0.43
%
 
$
124,182

 
$
63

 
0.20
%
Investment securities
 
316,253

 
1,710

 
2.16

 
299,049

 
1,650

 
2.21

 
306,623

 
1,749

 
2.28

Loans receivable, net (1)
 
2,998,153

 
40,487

 
5.37

 
2,892,236

 
39,035

 
5.43

 
2,080,281

 
27,935

 
5.33

Total interest-earning assets
 
3,515,546

 
42,429

 
4.80
%
 
3,368,888

 
40,874

 
4.88
%
 
2,511,086

 
29,747

 
4.70
%
Non-interest-earning assets
 
186,778

 
 
 
 
 
190,838

 
 
 
 
 
125,615

 
 
 
 
Total assets
 
$
3,702,324

 
 
 
 
 
$
3,559,726

 
 
 
 
 
$
2,636,701

 
 
 
 
Liabilities and Equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposits:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest checking
 
$
185,344

 
$
53

 
0.11
%
 
$
178,258

 
$
50

 
0.11
%
 
$
141,747

 
$
40

 
0.11
%
Money market
 
1,036,350

 
923

 
0.35

 
980,806

 
896

 
0.37

 
708,365

 
616

 
0.35

Savings
 
98,496

 
38

 
0.15

 
98,419

 
38

 
0.16

 
91,455

 
37

 
0.16

Time
 
601,551

 
1,122

 
0.74

 
606,770

 
1,026

 
0.68

 
523,010

 
1,026

 
0.78

Total interest-bearing deposits
 
1,921,741

 
2,136

 
0.44
%
 
1,864,253

 
2,010

 
0.43
%
 
1,464,577

 
1,719

 
0.47
%
FHLB advances and other borrowings
 
97,547

 
314

 
1.28

 
99,755

 
324

 
1.31

 
120,098

 
339

 
1.12

Subordinated debentures
 
69,984

 
970

 
5.54

 
70,310

 
979

 
5.57

 
70,310

 
993

 
5.65

Total borrowings
 
167,531

 
1,284

 
3.05
%
 
170,065

 
1,303

 
3.08
%
 
190,408

 
1,332

 
2.77
%
Total interest-bearing liabilities
 
2,089,272

 
3,420

 
0.65
%
 
2,034,318

 
3,313

 
0.66
%
 
1,654,985

 
3,051

 
0.73
%
Non-interest-bearing deposits
 
1,134,318

 
 
 
 
 
1,060,097

 
 
 
 
 
674,795

 
 
 
 
Other liabilities
 
35,019

 
 
 
 
 
32,969

 
 
 
 
 
22,435

 
 
 
 
Total liabilities
 
3,258,609

 
 
 
 
 
3,127,384

 
 
 
 
 
2,352,215

 
 
 
 
Stockholders' equity
 
443,715

 
 
 
 
 
432,342

 
 
 
 
 
284,486

 
 
 
 
Total liabilities and equity
 
$
3,702,324

 
 
 
 
 
$
3,559,726

 
 
 
 
 
$
2,636,701

 
 
 
 
Net interest income
 
 
 
$
39,009

 
 
 
 
 
$
37,561

 
 
 
 
 
$
26,696

 
 
Net interest margin (2)
 
 
 
 
 
4.41
%
 
 
 
 
 
4.48
%
 
 
 
 
 
4.22
%
Ratio of interest-earning assets to interest-bearing liabilities
 
168.27
%
 
 
 
 
 
165.60
%
 
 
 
 
 
151.73
%
 
(1) Average balance includes nonperforming loans and is net of deferred loan origination fees, unamortized discounts and premiums.
(2) Represents net interest income divided by average interest-earning assets.
 
 

 
 

 
 

 
 







PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
LOAN PORTFOLIO COMPOSITION
(dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30,
 
June 30,
 
March 31,
 
December 31,
 
September 30,
 
 
2016
 
2016
 
2016
 
2015
 
2015
Loan Portfolio
 
 
 
 
 
 
Business loans:
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
537,809

 
$
508,141

 
$
491,112

 
$
309,741

 
$
288,982

Franchise
 
431,618

 
403,855

 
371,875

 
328,925

 
295,965

Commercial owner occupied
 
460,068

 
443,060

 
424,289

 
294,726

 
302,556

SBA
 
92,195

 
86,076

 
78,350

 
62,256

 
70,191

Warehouse facilities
 

 

 
1,394

 
143,200

 
144,274

Real estate loans:
 
 
 
 
 
 
 
 
 
 
Commercial non-owner occupied
 
527,412

 
526,362

 
522,080

 
421,583

 
406,490

Multi-family
 
689,813

 
613,573

 
619,485

 
429,003

 
421,240

One-to-four family
 
101,377

 
106,538

 
106,854

 
80,050

 
78,781

Construction
 
231,098

 
215,786

 
218,069

 
169,748

 
141,293

Land
 
18,472

 
18,341

 
18,222

 
18,340

 
12,758

Other loans
 
5,678

 
5,822

 
6,045

 
5,111

 
5,017

Total gross loans
 
3,095,540

 
2,927,554

 
2,857,775

 
2,262,683

 
2,167,547

Less loans held for sale, net
 
9,009

 
10,116

 
7,281

 
8,565

 

   Total gross loans held for investment
 
3,086,531

 
2,917,438

 
2,850,494

 
2,254,118

 
2,167,547

Plus (less):
 
 
 
 
 
 
 
 
 
 
Deferred loan origination costs and premiums, net
 
4,308

 
3,181

 
938

 
197

 
309

Allowance for loan losses
 
(21,843
)
 
(18,955
)
 
(18,455
)
 
(17,317
)
 
(16,145
)
Loans held for investment, net
 
$
3,068,996

 
$
2,901,664

 
$
2,832,977

 
$
2,236,998

 
$
2,151,711







PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
ASSET QUALITY INFORMATION
(dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30,
 
June 30,
 
March 31,
 
December 31,
 
September 30,
 
 
2016
 
2016
 
2016
 
2015
 
2015
Asset Quality
 
 
Nonaccrual loans
 
$
5,734

 
$
4,062

 
$
4,823

 
$
3,970

 
$
4,095

Other real estate owned
 
711

 
711

 
1,161

 
1,161

 
711

Nonperforming assets
 
$
6,445

 
$
4,773

 
$
5,984

 
$
5,131

 
$
4,806

 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses
 
$
21,843

 
$
18,955

 
$
18,455

 
$
17,317

 
$
16,145

Allowance for loan losses as a percent of total nonperforming loans
 
381
%
 
467
%
 
383
 %
 
436
%
 
394
%
Nonperforming loans as a percent of gross loans
 
0.18
%
 
0.14
%
 
0.17
 %
 
0.18
%
 
0.19
%
Nonperforming assets as a percent of total assets
 
0.17
%
 
0.13
%
 
0.17
 %
 
0.18
%
 
0.18
%
Net loan charge-offs for the quarter ended
 
$
1,125

 
$
1,089

 
$
(18
)
 
$
528

 
$
17

Net loan charge-offs for quarter to average total loans, net
 
0.04
%
 
0.04
%
 
 %
 
0.02
%
 
%
Allowance for loan losses to gross loans
 
0.70
%
 
0.65
%
 
0.65
 %
 
0.77
%
 
0.74
%
Delinquent Loans:
 
 

 
 
 
 

 
 

 
 
30 - 59 days
 
$
1,042

 
$
1,144

 
$
247

 
$
323

 
$
702

60 - 89 days
 
1,990

 
2,487

 

 
355

 
25

90+ days
 
2,646

 
1,797

 
3,199

 
1,954

 
2,214

Total delinquency
 
$
5,678

 
$
5,428

 
$
3,446

 
$
2,632

 
$
2,941

Delinquency as a % of total gross loans
 
0.18
%
 
0.19
%
 
0.12
 %
 
0.12
%
 
0.14
%






PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
DEPOSIT COMPOSITION
(dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30,
 
June 30,
 
March 31,
 
December 31,
 
September 30,
 
 
2016
 
2016
 
2016
 
2015
 
2015
Deposit Accounts
 
 
Non-interest bearing checking
 
$
1,160,394

 
$
1,043,361

 
$
1,064,457

 
$
711,771

 
$
680,937

Interest-bearing:
 
 
 
 
 
 
 
 
 
 
Checking
 
170,057

 
168,669

 
160,707

 
134,999

 
130,671

Money market/savings
 
1,157,086

 
1,099,445

 
1,096,334

 
827,378

 
822,876

Retail certificates of deposit
 
384,083

 
420,673

 
455,637

 
365,911

 
383,481

Wholesale/brokered certificates of deposit
 
188,132

 
198,853

 
129,129

 
155,064

 
121,242

Total interest-bearing
 
1,899,358

 
1,887,640

 
1,841,807

 
1,483,352

 
1,458,270

Total deposits
 
$
3,059,752

 
$
2,931,001

 
$
2,906,264

 
$
2,195,123

 
$
2,139,207

 
 
 
 
 
 
 
 
 
 
 
Deposit Mix (% of total deposits)
 
 
 
 
 
 
 
 
 
 
Non-interest bearing deposits
 
37.9
%
 
35.6
%
 
36.6
%
 
32.4
%
 
31.8
%
Non-maturity deposits
 
81.3
%
 
78.9
%
 
79.9
%
 
76.3
%
 
76.4
%





GAAP RECONCILIATIONS
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
GAAP RECONCILIATIONS
(dollars in thousands, except per share data)
GAAP Reconciliations
 
 
 
 
 
 
For periods presented below, adjusted net income, adjusted diluted earnings per share and adjusted return on average assets are non-GAAP financial measures derived from GAAP-based amounts. We calculate these figures by excluding merger related expenses in the period results. Management believes that the exclusion of such items from these financial measures provides useful information to an understanding of the operating results of our core business. However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these adjusted measures, this presentation may not be comparable to other similarly titled adjusted measures reported by other companies.
 
 
Three Months Ended
 
 
September 30,
 
June 30,
 
September 30,
 
 
2016
 
2016
 
2015
Net income
 
$
9,227

 
$
10,369

 
$
7,837

Plus merger related expenses, net of tax
 

 
497

 
400

Less merger related expenses tax adjustment
 

 
(190
)
 

Adjusted net income
 
$
9,227

 
$
10,676

 
$
8,237

Diluted earnings per share
 
$
0.33

 
$
0.37

 
$
0.36

Plus merger related expenses, net of tax
 

 
0.01

 
0.02

Adjusted diluted earnings per share
 
$
0.33

 
$
0.38

 
$
0.38

Return on average assets
 
1.00
%
 
1.17
%
 
1.19
%
Plus merger related expenses, net of tax
 
%
 
0.03
%
 
0.06
%
Adjusted return on average assets
 
1.00
%
 
1.20
%
 
1.25
%
 
 
 
 
 
 
 
For periods presented below, return on average tangible common equity and adjusted return on average tangible common equity are non-GAAP financial measures derived from GAAP-based amounts. We calculate these figures by excluding merger related expenses and/or CDI amortization expense and exclude the average CDI and average goodwill from the average stockholders' equity during the period. Management believes that the exclusion of such items from these financial measures provides useful information to an understanding of the operating results of our core business. However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these adjusted measures, this presentation may not be comparable to other similarly titled adjusted measures reported by other companies.
 
 
Three Months Ended
 
 
September 30,
 
June 30,
 
September 30,
 
 
2016
 
2016
 
2015
Net income
 
$
9,227

 
$
10,369

 
$
7,837

Plus tax effected CDI amortization
 
525

 
645

 
344

Less CDI amortization expense tax adjustment
 
(204
)
 
(245
)
 
(131
)
Net income for average tangible common equity
 
$
9,548

 
$
10,769

 
$
8,050

Plus merger related expenses, net of tax
 

 
497

 
400

Less merger related expenses tax adjustment
 

 
(190
)
 

Adjusted net income for average tangible common equity
 
$
9,548

 
$
11,076

 
$
8,450

Average stockholders' equity
 
$
443,715

 
$
432,342

 
$
284,486

Less average CDI
 
10,318

 
10,876

 
7,686

Less average goodwill
 
101,939

 
101,923

 
50,832

Average tangible common equity
 
$
331,458

 
$
319,543

 
$
225,968

Return on average tangible common equity
 
11.52
%
 
13.48
%
 
14.25
%
Adjusted return on average tangible common equity
 
11.52
%
 
13.86
%
 
14.96
%
Tangible common equity to tangible assets (the "tangible common equity ratio") and tangible book value per share are non-GAAP financial measures derived from GAAP-based amounts. We calculate the tangible common equity ratio by excluding the balance of intangible assets from common stockholders' equity and dividing by tangible assets. We calculate tangible book value per share by dividing tangible common equity by common shares outstanding, as compared to book value per share, which we calculate by dividing common stockholders' equity by shares outstanding. We believe that this information is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios. Accordingly, we believe that these non-GAAP financial measures provide information that is important to investors and that is useful in understanding our capital position and ratios. However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these measures, this presentation may not be comparable to other similarly titled measures reported by other companies.
 
 
September 30,
 
June 30,
 
March 31,
 
December 31,
 
September 30,
 
 
2016
 
2016
 
2016
 
2015
 
2015
Total stockholders' equity
 
$
449,965

 
$
440,630

 
$
428,894

 
$
298,980

 
$
290,767

Less intangible assets
 
(111,915
)
 
(112,439
)
 
(113,230
)
 
(58,002
)
 
(58,346
)
Tangible common equity
 
$
338,050

 
$
328,191

 
$
315,664

 
$
240,978

 
$
232,421

Book value per share
 
$
16.27

 
$
15.94

 
$
15.58

 
$
13.86

 
$
13.52

Less intangible book value per share
 
(4.05
)
 
(4.07
)
 
(4.12
)
 
(2.69
)
 
(2.72
)
Tangible book value per share
 
$
12.22

 
$
11.87

 
$
11.46

 
$
11.17

 
$
10.80

Total assets
 
$
3,754,831

 
$
3,598,653

 
$
3,563,085

 
$
2,790,646

 
$
2,715,298

Less intangible assets
 
(111,915
)
 
(112,439
)
 
(113,230
)
 
(58,002
)
 
(58,346
)
Tangible assets
 
$
3,642,916

 
$
3,486,214

 
$
3,449,855

 
$
2,732,644

 
$
2,656,952

Tangible common equity ratio
 
9.28
%
 
9.41
%
 
9.15
%
 
8.82
%
 
8.75
%