IRVINE, Calif. - Pacific Premier Bancorp, Inc. (NASDAQ: NASDAQ:PPBI), the holding company for Pacific Premier Bank, disclosed a decrease in net income for the third quarter of 2024, which stood at $36.0 million or $0.37 per diluted share. This figure is lower compared to the net income of $41.9 million, or $0.43 per diluted share, for the second quarter of 2024, and $46.0 million, or $0.48 per diluted share, for the third quarter of 2023.
The company reported a return on average assets (ROAA) of 0.79% and a net interest margin of 3.16%. The average cost of deposits was 1.84%, with non-maturity deposits comprising 84.30% of total deposits. Delinquency rates stood at 0.08% of loans held for investment, and nonperforming assets were 0.22% of total assets.
Pacific Premier's tangible book value per share increased by $0.23 from the previous quarter to $20.81. The common equity tier 1 capital ratio was reported at 16.83%, and the total risk-based capital ratio at 20.05%. The tangible common equity (TCE) ratio increased to 11.83%.
Steven R. Gardner, Chairman, CEO, and President, remarked on the company's solid performance in the third quarter, highlighting the increase in non-interest-bearing deposits and the proactive steps taken to prioritize capital accumulation over balance sheet growth amid economic uncertainty. Gardner also noted the positive momentum building into the fourth quarter and the strategic positioning to enhance long-term franchise value.
The company's total assets were $17.91 billion as of September 30, 2024, a decline from $18.33 billion at June 30, 2024, and $20.28 billion at September 30, 2023. The reduction in higher-cost wholesale funding sources was achieved by decreasing brokered deposits by $184 million and repaying a $200 million Federal Home Loan Bank term advance.
Pacific Premier Bancorp's asset quality remained robust, with total delinquencies and non-performing assets decreasing. The company's capital ratios have positioned it among the strongest in the industry in terms of asset quality. Looking ahead, Pacific Premier is focused on leveraging its platform to support commercial banking teams and grow new loan and deposit relationships.
This information is based on a press release statement.
In other recent news, Pacific Premier Bancorp has reported its Q2 earnings, showing a net income of $41.9 million, a decrease from $47.0 million in Q1. The bank's total assets also saw a decline, standing at $18.33 billion, a decrease from $18.81 billion at the end of Q1. DA Davidson has maintained a Buy rating on the bank's stock, raising the price target to $31.00 from $27.00, reflecting confidence in the bank's risk management and forward-thinking approach. Analysts from Stephens and Piper Sandler have also adjusted their price targets for Pacific Premier Bancorp to $26.00, citing ongoing funding costs and net interest margin challenges. Pacific Premier Bancorp's strategic efforts are expected to contribute to a stronger return to growth in 2025. The bank's resilience and strategic positioning, with a focus on service quality, credit and pricing discipline, and a proactive approach to managing capital and liquidity, have been highlighted in these recent developments.
InvestingPro Insights
Pacific Premier Bancorp's recent financial performance, as outlined in the article, can be further contextualized with real-time data from InvestingPro. Despite the reported decrease in net income, InvestingPro Tips suggest that net income is expected to grow this year, and analysts predict the company will be profitable. This optimistic outlook contrasts with the current financial metrics, which show the company has not been profitable over the last twelve months.
The company's market capitalization stands at $2.49 billion, reflecting its significant presence in the banking sector. Pacific Premier's price-to-book ratio of 0.85 indicates that the stock may be undervalued relative to its book value, which aligns with the company's focus on capital accumulation mentioned in the article.
Investors should note the attractive dividend yield of 5.1%, which could be appealing in the current economic environment. This dividend, combined with the company's strong capital ratios highlighted in the article, suggests a commitment to shareholder returns while maintaining financial stability.
It's worth mentioning that InvestingPro provides additional tips and insights beyond what's presented here. For those interested in a deeper analysis, there are 13 more tips available on the InvestingPro platform, offering a more comprehensive view of Pacific Premier Bancorp's financial health and prospects.
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