Pacific Premier Bancorp, Inc. Announces First Quarter 2020 Financial Results
Pacific Premier Bancorp, Inc. Announces First Quarter 2020 Results (Unaudited) and a Quarterly Cash Dividend of $0.25 Per Share
First Quarter 2020 Summary
- Net income of $25.7 million, or $0.43 per diluted share
- Return on average assets of 0.89%, return on average equity of 5.05% and return on average tangible common equity of 9.96%
- Net interest margin of 4.24% and core net interest margin of 4.08%
- Non-maturity deposit growth of $169.9 million, or 9% annualized
- Noninterest bearing deposits represent 43% of total deposits and non-maturity deposits represent 88% of total deposits
- Nonperforming assets represent 0.18% of total assets
- Adopted new Current Expected Credit Losses (“CECL”) accounting standard effective January 1, 2020, resulting in a cumulative effect adjustment to the allowance for credit losses (“ACL”) of $64.0 million
- ACL to total loans held for investment at 1.32% at March 31, 2020 compared to 0.41% at December 31, 2019
- Loans held for investment include fair value discount of $35.9 million, or 0.41%, as of March 31, 2020
- Announced acquisition of Opus Bank on February 3, 2020, targeting June 1st effective date
IRVINE, Calif. Pacific Premier Bancorp, Inc. (NASDAQ: PPBI) (the “Company” or “Pacific Premier”), the holding company of Pacific Premier Bank (the “Bank”), reported net income of $25.7 million, or $0.43 per diluted share for the first quarter of 2020, compared with net income of $41.1 million, or $0.69 per diluted share, for the fourth quarter of 2019 and net income of $38.7 million, or $0.62 per diluted share, for the first quarter of 2019. Financial results for the first quarter of 2020 include a current period provision for credit losses of $25.5 million under the CECL model from forecasting expected future losses related to the coronavirus pandemic (“COVID-19”) economic disruption.
For the three months ended March 31, 2020, the Company’s return on average assets (“ROAA”) was 0.89%, return on average equity (“ROAE”) was 5.05% and return on average tangible common equity (“ROATCE”) was 9.96%, compared to 1.42%, 8.20% and 15.89%, respectively, for the fourth quarter of 2019 and 1.34%, 7.78% and 15.45%, respectively, for the first quarter of 2019. Total assets were $12.0 billion at March 31, 2020 compared with $11.8 billion at December 31, 2019 and $11.6 billion at March 31, 2019. A reconciliation of the non–U.S. GAAP measure of ROATCE to the U.S. GAAP measure of common stockholders' equity is set forth at the end of this press release.
Steven R. Gardner, Chairman, President and Chief Executive Officer of the Company, commented, “I am incredibly proud of the way our organization has responded to the challenges presented by the COVID-19 pandemic. Understanding the urgent nature of this crisis, our team was able to quickly execute on multiple initiatives designed to adjust our operations to protect the health and safety of our employees and clients. Currently, we have 737 employees, 74% of our workforce, who are able to work remotely without impacting our productivity while continuing to provide a superior level of customer service."