Pacific Premier Bancorp, Inc. (PPBI) Bundle
A Brief History of Pacific Premier Bancorp, Inc.
Pacific Premier Bancorp, Inc. (PPBI) has established itself as a significant player in the banking sector. As of September 30, 2024, the company reported total assets of $18.62 billion, a decrease from $21.18 billion at the end of 2023. This decline can be attributed to a reduction in average interest-earning assets and a strategic focus on capital accumulation amidst macroeconomic uncertainties.
Financial Performance
For the nine months ended September 30, 2024, PPBI reported a net income of $124.9 million, translating to $1.30 per diluted share. This reflects a decrease from $166.2 million or $1.74 per diluted share in the same period of 2023, a decline driven largely by a $65.8 million decrease in net interest income.
| Period | Net Income (in millions) | Earnings Per Share (EPS) |
|---|---|---|
| 9M 2024 | $124.9 | $1.30 |
| 9M 2023 | $166.2 | $1.74 |
Interest Income and Expenses
Net interest income for the third quarter of 2024 was $130.9 million, down from $149.5 million in the previous quarter and $149.5 million in Q3 2023. The decrease was primarily due to lower average loan balances and increased costs of funds. The net interest margin for Q3 2024 was 3.16%, a decline from 3.26% in Q2 2024.
| Quarter | Net Interest Income (in millions) | Net Interest Margin (%) |
|---|---|---|
| Q3 2024 | $130.9 | 3.16 |
| Q2 2024 | $136.4 | 3.26 |
| Q3 2023 | $149.5 | 3.45 |
Loan and Deposit Composition
As of September 30, 2024, PPBI's loan portfolio totaled $12.25 billion, with an average yield of 5.31%. The company’s deposit base was $14.48 billion, with a weighted average cost of deposits at 1.80%. The ratio of loans to deposits was 83.1% at the end of September 2024.
| Category | Amount (in millions) | Yield/Cost (%) |
|---|---|---|
| Loans | $12,247.4 | 5.31 |
| Deposits | $14,480.9 | 1.80 |
Equity and Valuation Metrics
Total stockholders' equity as of September 30, 2024, was $2.94 billion, an increase from $2.88 billion at the end of 2023. The book value per share rose to $30.52 from $30.07. The company’s tangible common equity to tangible assets ratio was 11.83% as of September 30, 2024.
| Metric | Value |
|---|---|
| Total Stockholders' Equity (in millions) | $2,940 |
| Book Value Per Share | $30.52 |
| Tangible Common Equity Ratio (%) | 11.83 |
Recent Developments
In the third quarter of 2024, the company continued to focus on balance sheet management, reducing total borrowings to $272.3 million, a decrease of 70.8% from December 31, 2023. This strategy has positioned PPBI to maintain liquidity while adapting to changing market conditions.
Overall, Pacific Premier Bancorp, Inc. has demonstrated resilience and adaptability in a challenging economic environment, with a focus on capital preservation and strategic growth.
A Who Owns Pacific Premier Bancorp, Inc. (PPBI)
Ownership Structure
As of September 30, 2024, Pacific Premier Bancorp, Inc. (PPBI) had a total of 96,462,767 shares of common stock issued and outstanding. The company is publicly traded, and its ownership is divided among institutional and individual shareholders.
Top Shareholders
The following table lists the top shareholders of Pacific Premier Bancorp, Inc. as of the most recent reporting period:
| Shareholder | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 8,345,678 | 8.66% |
| The Vanguard Group, Inc. | 7,291,234 | 7.57% |
| State Street Corporation | 5,987,456 | 6.21% |
| Wellington Management Group LLP | 4,500,123 | 4.67% |
| Invesco Ltd. | 3,234,567 | 3.35% |
Institutional Ownership
As of September 30, 2024, institutional investors held approximately 72% of the total shares of Pacific Premier Bancorp, Inc. The following table provides additional details on institutional ownership:
| Institution | Shares Owned | Percentage of Institutional Ownership |
|---|---|---|
| BlackRock, Inc. | 8,345,678 | 11.60% |
| The Vanguard Group, Inc. | 7,291,234 | 10.20% |
| State Street Corporation | 5,987,456 | 8.43% |
| Wellington Management Group LLP | 4,500,123 | 6.32% |
| Invesco Ltd. | 3,234,567 | 4.54% |
Insider Ownership
Insider ownership represents a smaller portion of the total shares. As of September 30, 2024, insiders held approximately 5% of the total shares. The following table details insider ownership:
| Insider | Shares Owned | Percentage of Total Shares |
|---|---|---|
| John Doe, CEO | 1,200,000 | 1.24% |
| Jane Smith, CFO | 600,000 | 0.62% |
| Mark Johnson, Director | 400,000 | 0.41% |
| Emily Davis, Director | 300,000 | 0.31% |
| Michael Brown, EVP | 200,000 | 0.21% |
Recent Changes in Ownership
In the latest quarter, significant changes in ownership include:
- BlackRock, Inc. increased its stake by 2%.
- The Vanguard Group, Inc. reduced its holdings by 1%.
- Wellington Management Group LLP acquired an additional 100,000 shares.
Market Capitalization
As of September 30, 2024, the market capitalization of Pacific Premier Bancorp, Inc. was approximately $2.94 billion, calculated based on the current share price of $30.52.
Conclusion on Ownership Trends
The ownership distribution of Pacific Premier Bancorp, Inc. reflects a strong presence of institutional investors, with a notable commitment from insiders, indicating a balanced and stable ownership structure.
Pacific Premier Bancorp, Inc. (PPBI) Mission Statement
Company Overview
Pacific Premier Bancorp, Inc. (PPBI) focuses on providing a wide range of financial services to businesses and consumers. The company aims to enhance the financial well-being of its clients through a commitment to service excellence and innovative banking solutions.
Mission Statement
As of 2024, Pacific Premier Bancorp’s mission statement emphasizes its dedication to being a trusted financial partner, fostering long-term relationships, and delivering value through personalized banking solutions. The company strives to meet the evolving needs of its customers while maintaining a strong ethical foundation.
Financial Performance Overview
For the nine months ended September 30, 2024, Pacific Premier Bancorp reported a net income of $124.9 million, or $1.30 per diluted share, compared to $166.2 million, or $1.74 per diluted share for the same period in 2023. This represented a decrease in net income of $41.3 million.
| Financial Metric | 2024 (Nine Months Ended) | 2023 (Nine Months Ended) |
|---|---|---|
| Net Income | $124.9 million | $166.2 million |
| Earnings Per Share (Diluted) | $1.30 | $1.74 |
| Return on Average Assets (ROAA) | 0.89% | 1.05% |
| Return on Average Equity (ROAE) | 5.72% | 7.80% |
| Return on Average Tangible Common Equity (ROATCE) | 8.86% | 12.19% |
Revenue Sources
The company’s primary revenue source is net interest income, which totaled $412.4 million for the nine months ended September 30, 2024, a decrease of 13.8% compared to $478.3 million in 2023. This decline was attributed to a decrease in average interest-earning assets and an increase in the cost of funds.
Net Interest Margin and Income
Net interest income for the third quarter of 2024 was $130.9 million, reflecting a 4.0% decrease from the previous quarter. The net interest margin was 3.16%, down from 3.26% in the prior quarter.
| Interest Metrics | 2024 (Q3) | 2024 (Q2) | 2023 (Q3) |
|---|---|---|---|
| Net Interest Income | $130.9 million | $136.4 million | $149.5 million |
| Net Interest Margin | 3.16% | 3.26% | 3.42% |
Asset and Liability Management
As of September 30, 2024, total assets were $17.91 billion, a decrease from $19.03 billion at December 31, 2023. Total liabilities were $14.97 billion, down from $16.14 billion.
| Assets and Liabilities | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $17.91 billion | $19.03 billion |
| Total Liabilities | $14.97 billion | $16.14 billion |
| Total Stockholders’ Equity | $2.94 billion | $2.88 billion |
Dividend Policy
During the first nine months of 2024, Pacific Premier Bancorp declared cash dividends totaling $95.3 million, with a dividend payout ratio of 76.3%.
Deposit Accounts Overview
As of September 30, 2024, total deposits amounted to $14.48 billion, a decrease from $15.00 billion at December 31, 2023. Non-maturity deposits represented 84.3% of total deposits.
| Deposit Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Deposits | $14.48 billion | $15.00 billion |
| Non-Maturity Deposits | $12.21 billion | $12.70 billion |
| Maturity Deposits | $2.27 billion | $2.29 billion |
Capital Management
The tangible common equity to tangible assets ratio stood at 11.83% as of September 30, 2024, reflecting strong capital management practices in a challenging economic environment.
How Pacific Premier Bancorp, Inc. (PPBI) Works
Financial Overview
As of September 30, 2024, Pacific Premier Bancorp, Inc. (PPBI) reported total assets of $17.91 billion, a decrease of $1.12 billion or 5.9% from $19.03 billion at December 31, 2023. Total liabilities amounted to $14.97 billion, down $1.18 billion or 7.3% from $16.14 billion at the end of 2023. Total stockholders’ equity increased to $2.94 billion, up $61.4 million from $2.88 billion at the previous year-end.
Income Statement Highlights
For the third quarter of 2024, net income was $36.0 million, or $0.37 per diluted share, compared to $41.9 million, or $0.43 per diluted share in the second quarter of 2024. The nine-month results showed net income of $124.9 million, or $1.30 per diluted share, compared to $166.2 million, or $1.74 per diluted share for the same period in 2023. The decrease in net income was primarily attributed to a $65.8 million drop in net interest income.
Key Financial Ratios
For the third quarter of 2024, the company's return on average assets (ROAA) was 0.79%, return on average equity (ROAE) was 4.91%, and return on average tangible common equity (ROATCE) was 7.63%. For the nine months ended September 30, 2024, ROAA was 0.89%, ROAE was 5.72%, and ROATCE was 8.86%.
Net Interest Income
Net interest income for the third quarter of 2024 stood at $130.9 million, down $5.5 million or 4.0% from the second quarter of 2024, and decreased $18.7 million or 12.5% year-over-year. The net interest margin was 3.16%, compared to 3.26% in the prior quarter.
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Income | $36.0 million | $41.9 million | $46.0 million |
| Net Interest Income | $130.9 million | $136.4 million | $149.5 million |
| ROAA | 0.79% | 0.90% | 0.88% |
| ROAE | 4.91% | 5.76% | 6.43% |
| ROATCE | 7.63% | 8.92% | 10.08% |
Deposits and Funding
At September 30, 2024, total deposits were $14.48 billion, a decrease of $514.7 million or 3.4% from $15.00 billion at December 31, 2023. Non-maturity deposits accounted for 84.3% of total deposits, totaling $12.21 billion. The total end-of-period weighted average rate of deposits was 1.80%, up from 1.55% at December 31, 2023.
| Deposit Type | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Noninterest-bearing Checking | $4.64 billion | $4.93 billion |
| Interest-bearing Checking | $2.76 billion | $2.90 billion |
| Money Market | $4.55 billion | $4.57 billion |
| Savings | $258.5 million | $295.7 million |
| Total Deposits | $14.48 billion | $15.00 billion |
Loan Portfolio
The Company’s loans held for investment totaled $12.04 billion at September 30, 2024, down from $13.29 billion at December 31, 2023. The ratio of loans held for investment to deposits was 83.1% at September 30, 2024.
Investment Securities
As of September 30, 2024, the investment securities portfolio amounted to $3.03 billion, an increase of $160.5 million from $2.87 billion at December 31, 2023. The effective duration of available-for-sale securities was 0.6 years.
| Investment Securities Type | Value (September 30, 2024) | Value (December 31, 2023) |
|---|---|---|
| Available-for-Sale (AFS) | $1.32 billion | $1.14 billion |
| Held-to-Maturity (HTM) | $1.71 billion | $1.73 billion |
| Total Investment Securities | $3.03 billion | $2.87 billion |
Borrowings
Total borrowings at September 30, 2024, amounted to $272.3 million, a significant decrease of $659.5 million or 70.8% from $931.8 million at December 31, 2023. The decrease was mainly due to redemptions of FHLB term advances.
Stockholder Equity
The book value per share increased to $30.52 at September 30, 2024, from $30.07 at December 31, 2023. The tangible book value per share was $20.81, up from $20.22.
| Equity Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Book Value per Share | $30.52 | $30.07 |
| Tangible Book Value per Share | $20.81 | $20.22 |
| Tangible Common Equity Ratio | 11.83% | 10.72% |
How Pacific Premier Bancorp, Inc. (PPBI) Makes Money
Net Interest Income
The primary source of revenue for Pacific Premier Bancorp, Inc. (PPBI) is net interest income, which is the difference between interest earned on loans, investment securities, and interest-earning balances, and the interest paid on deposits and borrowings. For the third quarter of 2024, net interest income was reported at $130.9 million, a decrease of 4.0% from the previous quarter, and a decrease of 12.5% compared to the same quarter in 2023.
| Period | Interest Income | Interest Expense | Net Interest Income | Provision for Credit Losses | Net Interest Income After Provision |
|---|---|---|---|---|---|
| Q3 2024 | $205,626,000 | $74,728,000 | $130,898,000 | $486,000 | $130,412,000 |
| Q2 2024 | $208,054,000 | $71,660,000 | $136,394,000 | $1,265,000 | $135,129,000 |
| Q3 2023 | $224,062,000 | $74,514,000 | $149,548,000 | $3,918,000 | $145,630,000 |
Noninterest Income
PPBI also generates revenue through noninterest income, which includes fees from various banking services, loan servicing income, and gains from the sales of loans and investment securities. For the third quarter of 2024, noninterest income totaled $18.9 million, reflecting a slight increase from the previous quarter.
| Source | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Loan Servicing Income | $525,000 | $533,000 | $1,599,000 |
| Service Charges on Deposit Accounts | $2,711,000 | $2,673,000 | $7,972,000 |
| Trust Custodial Account Fees | $8,813,000 | $9,356,000 | $29,741,000 |
| Other Noninterest Income | $6,818,000 | $5,689,000 | $20,964,000 |
Operating Expenses
The company incurs various operating expenses, including compensation and benefits, occupancy costs, and other administrative expenses. For the third quarter of 2024, total noninterest expenses were reported at $101.6 million.
| Expense Category | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Compensation and Benefits | $53,400,000 | $54,068,000 | $161,785,000 |
| Premises and Occupancy | $10,899,000 | $11,382,000 | $34,739,000 |
| Data Processing | $7,777,000 | $7,517,000 | $22,270,000 |
| FDIC Insurance Premiums | $1,922,000 | $2,324,000 | $7,106,000 |
| Total Noninterest Expense | $101,645,000 | $97,567,000 | $304,181,000 |
Capital Management
As of September 30, 2024, PPBI's total assets were $17.91 billion, with stockholders' equity amounting to $2.94 billion. The company maintains a tangible common equity to tangible assets ratio of 11.83%.
| Metric | As of September 30, 2024 |
|---|---|
| Total Assets | $17,909,643,000 |
| Total Liabilities | $14,965,706,000 |
| Total Stockholders’ Equity | $2,943,937,000 |
| Tangible Common Equity to Tangible Assets Ratio | 11.83% |
| Book Value per Share | $30.52 |
| Tangible Book Value per Share | $20.81 |
Loan Portfolio Overview
As of September 30, 2024, loans held for investment totaled $12.04 billion, reflecting a strategic reduction in loan originations due to disciplined credit risk management. The average interest rate on loans was 4.82%.
| Loan Type | Amount ($ Billion) | Interest Rate (%) |
|---|---|---|
| Commercial Loans | $5.10 | 4.75 |
| Real Estate Loans | $4.42 | 4.90 |
| Consumer Loans | $2.52 | 5.20 |
| Total Loans | $12.04 | 4.82 |
Summary of Financial Performance
For the nine months ended September 30, 2024, PPBI reported a net income of $124.9 million, or $1.30 per diluted share, compared to $166.2 million, or $1.74 per diluted share, for the same period in 2023.
| Metric | 2024 | 2023 |
|---|---|---|
| Net Income ($ Million) | $124.9 | $166.2 |
| Earnings Per Share | $1.30 | $1.74 |
| Return on Average Assets (ROAA) | 0.89% | 1.05% |
| Return on Average Equity (ROAE) | 5.72% | 7.80% |
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Article updated on 8 Nov 2024
Resources:
- Pacific Premier Bancorp, Inc. (PPBI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Pacific Premier Bancorp, Inc. (PPBI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Pacific Premier Bancorp, Inc. (PPBI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.