Pacific Premier Bancorp(PPBI) - 2024 Q3 - Quarterly Results

Financial Performance - Net income for Q3 2024 was $36.0 million, or $0.37 per diluted share, down from $41.9 million in Q2 2024 and $46.0 million in Q3 2023[1] - The company reported a net income of $35,979 thousand for the three months ended September 30, 2024, down from $46,030 thousand in the same period last year[70] - Net interest income for Q3 2024 was $130.9 million, a decrease of $5.5 million, or 4.0%, from Q2 2024[7] - Noninterest income for the third quarter of 2024 was $18.9 million, an increase of $645,000 from the previous quarter, primarily due to a decrease in Community Reinvestment Act investment loss[12] - Net interest income after provision for credit losses was $130,412 for the three months ended September 30, 2024, down from $145,630 in the same period last year, representing a decline of 10.4%[56] - Total revenue for the quarter was $149,765, reflecting a decline of 11.0% compared to $168,099 in the prior year[74] Asset and Liability Management - Total assets decreased to $17.91 billion from $18.33 billion in Q2 2024 and $20.28 billion in Q3 2023[2] - Total liabilities stood at $15,313,253 thousand, with interest-bearing liabilities yielding a cost of 2.85%[58] - Total deposits were $14.48 billion at September 30, 2024, a decrease of $146.7 million, or 1.0%, from June 30, 2024, and a decrease of $1.53 billion, or 9.5%, from September 30, 2023[34] - Total stockholders' equity increased to $2,943,937 thousand from $2,923,764 thousand, an increase of approximately 0.7%[55] - The company has an unused borrowing capacity of $8.83 billion as of September 30, 2024[42] Credit Quality - Nonperforming assets as a percentage of total assets improved to 0.22% from 0.28% in Q2 2024[5] - Provision for credit losses was $486,000 for the third quarter of 2024, a decrease from $1.26 million in the previous quarter and $3.92 million in the same quarter last year[11] - The allowance for credit losses on loans held for investment was $181.2 million as of September 30, 2024, down from $183.8 million on June 30, 2024, and down from $188.1 million on September 30, 2023[26] - Nonperforming loans amounted to $39,084 thousand as of September 30, 2024, a significant decrease from $52,119 thousand in June 30, 2024, reflecting a reduction of 25%[61] - The allowance for credit losses was $181,248 thousand, which is 464% of total nonperforming loans, indicating a strong coverage ratio[61] Loan and Deposit Trends - Loans held for investment totaled $12.04 billion at September 30, 2024, a decrease of $454.9 million, or 3.6%, from the previous quarter[19] - New loan commitments in the third quarter of 2024 were $104.1 million, down from $150.7 million in the second quarter of 2024, but up from $67.8 million in the third quarter of 2023[19] - The total loan-to-deposit ratio was 83.1% at September 30, 2024, compared to 85.4% at June 30, 2024[20] - Non-maturity deposits totaled $12.21 billion, or 84.3% of total deposits, a decrease of $29.0 million, or 0.2%, from June 30, 2024[35] - Total investor loans secured by real estate amounted to $8,068,489 thousand as of September 30, 2024, a decrease of 1.7% from $8,206,124 on June 30, 2024, and a decrease of 7.4% from $8,715,596 on September 30, 2023[23] Capital Ratios and Equity - Common equity tier 1 capital ratio increased to 16.83% from 15.89% in Q2 2024[5] - The total capital ratio stood at 20.05%, an increase from 17.74% a year earlier[46] - Tangible common equity ratio improved to 11.83%, compared to 9.87% on September 30, 2023[80] - Book value per share rose to $30.52, up from $29.78 a year ago[46] - The company declared a dividend of $0.33 per share, payable on November 12, 2024[47] Operational Efficiency - Noninterest expense totaled $101.6 million for the third quarter of 2024, an increase of $4.1 million compared to the second quarter, driven by higher legal and professional services costs[15] - Efficiency ratio increased to 66.1%, compared to 59.0% in the same quarter of the previous year[77] - Compensation and benefits expense was $53,400 for the three months ended September 30, 2024, slightly up from $54,068 in September 2023, indicating a decrease of 1.2%[56] Interest Rates and Margins - Net interest margin decreased to 3.16% in Q3 2024 from 3.26% in Q2 2024[7] - Average yield on loans was 5.31% for the third quarter of 2024, slightly up from 5.30% in the previous quarter[9] - The weighted average cost of total deposits for Q3 2024 was 1.84%, compared to 1.73% for Q2 2024, and 1.50% for Q3 2023[37] - The cost of funds increased to 1.97%, while the cost of non-maturity deposits was reported at 1.27%[58]