Pacific Premier Bancorp(US:PPBI)2022-11-04 20:07Financial Performance - Net income for the three months ended September 30, 2022, was $73.36 million, a decrease of 18.6% compared to $90.09 million for the same period in 2021[12]. - Basic earnings per share for the three months ended September 30, 2022, was $0.77, compared to $0.95 for the same period in 2021, reflecting a decline of 18.9%[12]. - Comprehensive income for the nine months ended September 30, 2022, was $(63.181) million, a significant decline from $195.942 million for the same period in 2021[14]. - Net income for the nine months ended September 30, 2022, was $210,070, a decrease of 16.6% compared to $255,058 for the same period in 2021[23]. - The company reported a provision for credit losses of $1.08 million for the three months ended September 30, 2022, compared to a reversal of $19.73 million for the same period in 2021[12]. Asset and Equity Changes - Total assets increased to $21.62 billion as of September 30, 2022, compared to $21.09 billion at December 31, 2021, reflecting a growth of 2.5%[10]. - Total stockholders' equity decreased to $2.74 billion as of September 30, 2022, from $2.89 billion at December 31, 2021, a decline of 5.2%[10]. - The total stockholders' equity as of September 30, 2022, was $2.735 billion, a decrease from $2.886 billion at the end of 2021[16]. Income and Expense Analysis - Net interest income before provision for credit losses was $181.11 million for the three months ended September 30, 2022, up from $169.07 million for the same period in 2021, representing an increase of 7.1%[12]. - Noninterest income totaled $20.16 million for the three months ended September 30, 2022, down from $30.10 million for the same period in 2021, a decrease of 33.1%[12]. - Total noninterest expense increased to $100.87 million for the three months ended September 30, 2022, compared to $96.04 million for the same period in 2021, an increase of 5.9%[12]. Credit Losses and Provisions - The allowance for credit losses decreased slightly to $195.55 million as of September 30, 2022, from $197.75 million at December 31, 2021[10]. - The company reported a provision for credit losses of $1,994, a significant improvement compared to a provision of $(56,228) in the prior year[23]. - The ACL for loans held for investment decreased by $526,000, attributed to $1.1 million in net charge-offs and a $546,000 provision for credit losses[169]. Loan Portfolio and Commitments - The total loan portfolio as of September 30, 2022, was $14.9 billion, an increase from $14.3 billion at December 31, 2021, with a net allowance for credit losses of $195.5 million[113]. - The Company reported total unfunded loan commitments of $2.82 billion as of September 30, 2022, compared to $2.51 billion at December 31, 2021[113]. - The largest aggregate outstanding balance of loans to one borrower was $257.3 million as of September 30, 2022, primarily comprised of an asset-based line of credit[119]. Investment Securities - The total amortized cost of AFS investment securities was $2,985.4 million with a fair value of $2,661.1 million as of September 30, 2022, reflecting a gross unrealized loss of $324.3 million[89]. - The Company reported a net unrealized loss on AFS investment securities of $324.3 million as of September 30, 2022, compared to a net unrealized loss of $4.7 million at December 31, 2021[92]. - The total investment securities, including both AFS and HTM, reached $4,370,984,000 with a fair value of $3,716,266,000 as of September 30, 2022[106]. Economic and Market Conditions - Economic forecasts used in the ACL model include scenarios for rising interest rates and ongoing inflationary pressures, impacting future cash flow expectations[162]. - Key economic variables influencing the ACL calculation include the U.S. unemployment rate, U.S. real GDP growth, and CRE prices[164]. Goodwill and Intangible Assets - As of September 30, 2022, the Company reported goodwill of $901.3 million, unchanged from December 31, 2021, with adjustments of $2.7 million related to the Opus acquisition recorded in 2021[173][174]. - Other intangible assets decreased to $59.0 million as of September 30, 2022, from $69.6 million at December 31, 2021, primarily due to amortization[175].