Pacific Premier Bancorp, Inc. Announces Second Quarter 2019 Results (Unaudited) and a Quarterly Cash Dividend of $0.22 Per Share

Company Release - 7/23/2019 6:00 AM ET

Second Quarter 2019 Summary

  • Net income of $38.5 million, or $0.62 per diluted share
  • Return on average assets of 1.33%, return on average equity of 7.71%, and return on average tangible common equity of 15.16%
  • Repurchased 2.2 million shares of our common stock representing 3.5% of shares outstanding
  • Returned $79.8 million of capital to shareholders through share repurchases and dividends
  • Total assets increased to $11.8 billion
  • 10% annualized growth for non-maturity deposits, or $178.1 million, since March 31,2019
  • Noninterest bearing deposits as a percent of total deposits of 39%
  • Nonperforming assets as a percent of total assets of 0.07%

IRVINE, Calif.--(BUSINESS WIRE)-- Pacific Premier Bancorp, Inc. (NASDAQ: PPBI) (the “Company”), the holding company of Pacific Premier Bank (the “Bank”), reported net income for the second quarter of 2019 of $38.5 million, or $0.62 per diluted share, compared with net income of $38.7 million, or $0.62 per diluted share, for the first quarter of 2019 and net income of $27.3 million, or $0.58 per diluted share, for the second quarter of 2018.

For the three months ended June 30, 2019, the Company’s return on average assets (“ROAA”) was 1.33%, return on average equity (“ROAE”) was 7.71% and return on average tangible common equity (“ROATCE”) was 15.16%, compared to 1.34%, 7.78% and 15.45%, respectively, for the three months ended March 31, 2019 and 1.35%, 8.53% and 15.42%, respectively, for the three months ended June 30, 2018. Total assets as of June 30, 2019 were $11.8 billion compared with $11.6 billion at March 31, 2019 and $8.2 billion at June 30, 2018. 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, “Our focus on core deposit growth, proactive capital management, disciplined cost controls and strong asset quality continues to produce a superior level of risk-adjusted profitability. In the second quarter of 2019, we generated a ROAA of 1.33% and a ROATCE of 15.16%. We are making good progress on our core deposit growth initiatives, which resulted in strong inflows in lower-cost, transaction accounts. Organic deposit growth of transaction and non-maturity accounts increased $178.1 million in the current quarter.

“Our high level of profitability and on-going risk management discipline is enabling us to return significant amounts of capital to shareholders. During the second quarter, we took the opportunity to further optimize our capital structure by issuing $125 million in subordinated debt and using a portion of the proceeds to repurchase nearly $66 million of our common stock. We believe that replacing higher cost common equity with lower cost subordinated debt allows us to reduce our overall cost of capital and creates additional value for our shareholders.

“The success we are having in generating lower-cost core deposits provides us the flexibility to prudently increase our loan growth while protecting our net interest margin. Given our improved funding mix and historically consistent ability to originate high-quality loans at attractive yields, we believe we are well-positioned to deliver revenue and earnings growth over the second half of 2019,” said Mr. Gardner.

Three Months Ended

June 30,

 

March 31,

 

June 30,

2019

 

2019

 

2018

Financial Highlights

(dollars in thousands, except per share data)

Net income

$

38,527

 

$

38,718

 

$

27,303

 

Diluted earnings per share

 

0.62

 

 

0.62

 

 

0.58

 

Return on average assets

 

1.33

%

 

1.34

%

 

1.35

%

Return on average equity

 

7.71

 

 

7.78

 

 

8.53

 

Return on average tangible common equity (1)

 

15.16

 

 

15.45

 

 

15.42

 

Net interest margin

 

4.28

 

 

4.37

 

 

4.41

 

Core net interest margin

 

4.08

 

 

4.21

 

 

4.29

 

Cost of deposits

 

0.73

 

 

0.63

 

 

0.50

 

Efficiency ratio (2)

 

51.1

 

 

49.3

 

 

53.0

 

Total assets

$

11,783,781

 

$

11,580,495

 

$

8,158,131

 

Total deposits

 

8,861,922

 

 

8,715,175

 

 

6,308,350

 

Core deposits as a percent of total deposits (3)

 

89

%

 

88

%

 

89

%

Book value per share

$

32.80

 

$

31.97

 

$

27.63

 

Tangible book value per share (1)

 

17.92

 

 

17.56

 

 

16.21

 

Total risk-based capital ratio

 

13.54

%

 

12.58

%

 

12.75

%

(1) A reconciliation of the non-U.S. GAAP measures of average tangible common equity and tangible book value per share to the U.S. GAAP measures of common stockholders' equity and book value are set forth at the end of this press release.

(2) Represents the ratio of noninterest expense less other real estate owned operations, core deposit intangible amortization and merger- related expense to the sum of net interest income before provision for credit losses and total noninterest income, less gains/(loss) on sale of securities, other-than-temporary impairment recovery/(loss) on investment securities and gain/(loss) from other real estate owned.

(3) Core deposits are all transaction accounts and non-brokered certificates of deposit less than $250,000.

INCOME STATEMENT HIGHLIGHTS

Net Interest Income and Net Interest Margin

Net interest income totaled $110.6 million in the second quarter of 2019, a decrease of $765,000, or 0.7%, from the first quarter of 2019. The decrease in net interest income reflected our higher cost of funds and lower average loan balances as well as the issuance of $125.0 million of subordinated notes in May 2019, partially offset by the impact of one more day of interest and higher accretion income.

The net interest margin for the second quarter was 4.28%, compared with 4.37% in the prior quarter. The decrease was primarily driven by our higher cost of funds and lower average loan balances partially offset by higher accretion income of $5.0 million compared to $3.8 million in the prior quarter. Our core net interest margin, which excludes the impact of accretion, decreased 13 basis points to 4.08%, compared to 4.21% in the prior quarter. The core net interest margin was negatively impacted by 4 basis points due to the issuance of the previously mentioned $125.0 million of subordinated notes at an annual coupon of 4.875% during the second quarter of 2019. The remaining 9 basis-point decrease was primarily attributable to a higher cost of funds and lower average loan balances.

We anticipate our core net interest margin will be in the range of 4.00% to 4.10% in the third quarter of 2019.

Net interest income for the second quarter of 2019 increased $29.5 million, or 36.3%, compared to the second quarter of 2018. The increase was primarily related to an increase in average interest-earning assets of $2.98 billion, which resulted primarily from our acquisition of Grandpoint Capital, Inc. (“Grandpoint”) in the third quarter of 2018, as well as organic loan growth since the end of the second quarter of 2018.

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED AVERAGE BALANCES AND YIELD DATA

                 

Three Months Ended

June 30, 2019

 

March 31, 2019

 

June 30, 2018

 

 

 

Interest

 

Average

 

 

 

Interest

 

Average

 

 

 

Interest

 

Average

 

Average

 

Income/

 

Yield/

 

Average

 

Income/

 

Yield/

 

Average

 

Income/

 

Yield/

 

Balance

 

Expense

 

Cost

 

Balance

 

Expense

 

Cost

 

Balance

 

Expense

 

Cost

Assets

(dollars in thousands)

Cash and cash equivalents

$

187,963

 

$

435

 

0.93

%

 

$

173,613

 

$

378

 

0.88

%

 

$

146,279

 

$

277

 

0.76

%

Investment securities

 

1,396,585

 

 

10,119

 

2.90

 

 

 

1,298,476

 

 

9,389

 

2.89

 

 

 

980,334

 

 

6,797

 

2.77

 

Loans receivable, net (1) (2)

 

8,779,440

 

 

121,860

 

5.57

 

 

 

8,867,159

 

 

121,476

 

5.56

 

 

 

6,253,987

 

 

85,625

 

5.49

 

Total interest-earning assets

$

10,363,988

 

$

132,414

 

5.12

 

 

$

10,339,248

 

$

131,243

 

5.15

 

 

$

7,380,600

 

$

92,699

 

5.04

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

$

5,345,388

 

$

15,991

 

1.20

 

 

$

5,073,723

 

$

13,284

 

1.06

 

 

$

3,888,553

 

$

7,756

 

0.80

 

Borrowings

 

675,345

 

 

5,782

 

3.43

 

 

 

880,671

 

 

6,553

 

3.02

 

 

 

560,706

 

 

3,772

 

2.70

 

Total interest-bearing liabilities

$

6,020,733

 

$

21,773

 

1.45

 

 

$

5,954,394

 

$

19,837

 

1.35

 

 

$

4,449,259

 

$

11,528

 

1.04

 

Noninterest bearing deposits

$

3,426,508

 

 

 

 

 

$

3,480,791

 

 

 

 

 

$

2,310,714

 

 

 

 

Net interest income

 

 

$

110,641

 

 

 

 

 

$

111,406

 

 

 

 

 

$

81,171

 

 

Net interest margin (3)

 

 

 

 

4.28

 

 

 

 

 

 

4.37

 

 

 

 

 

 

4.41

 

Cost of deposits

 

 

 

 

0.73

 

 

 

 

 

 

0.63

 

 

 

 

 

 

0.50

 

Cost of funds (4)

 

 

 

 

0.92

 

 

 

 

 

 

0.85

 

 

 

 

 

 

0.68

 

(1) Average balance includes loans held for sale and nonperforming loans and is net of deferred loan origination fees/costs and discounts/premiums.

(2) Interest income includes net discount accretion of $5.0 million, $3.8 million and $1.9 million, respectively.

(3) Represents annualized net interest income divided by average interest-earning assets.

(4) Represents annualized total interest expense divided by the sum of average total interest-bearing liabilities and noninterest-bearing deposits.

Provision for Credit Losses

A provision for credit losses of $334,000 was recorded for the second quarter of 2019, compared with a provision for credit losses of $1.5 million for the first quarter of 2019 and $1.8 million for the second quarter of 2018. The decrease in provision for credit losses was primarily driven by lower loan balances, continued strength in asset quality, and a reduction in the reserve for unfunded commitments.

The reduction of provision for unfunded commitments was attributable to lower loan commitments and loss rates as of June 30, 2019.

Three Months Ended

June 30,

 

March 31,

 

June 30,

2019  

2019

 

2018

Provision for Credit Losses

(dollars in thousands)

Provision for loans and leases losses

$

742

 

 

$

2,012

 

 

$

1,353

Provision for unfunded commitments

 

(408

)

 

 

(486

)

 

 

408

Total provision for credit losses

$

334

 

 

$

1,526

 

 

$

1,761

Noninterest Income

Noninterest income for the second quarter of 2019 was $6.3 million, a decrease of $1.4 million, or 17.7%, from the first quarter of 2019. The decrease was primarily due to a $827,000 decrease in net gain from the sales of loans, a $459,000 decrease in other income and a $215,000 decrease in net gain from sales of investment securities. The decrease in other income was primarily due to a positive fair value adjustment of $238,000 in Community Reinvestment Act (“CRA”) related equity investments, compared to a $612,000 positive fair value adjustment in the prior quarter.

During the second quarter of 2019, the Bank sold $24.4 million of Small Business Administration (“SBA”) loans for a net gain of $2.2 million, compared with the sale of $25.5 million of SBA loans for a net gain of $1.7 million during the prior quarter. The current quarter also included the sale of $82.5 million of non-SBA loans for a net loss of $1.3 million.

We anticipate our noninterest income will range from $6.5 million to $7.5 million for the third quarter of 2019 based upon current SBA loan sale gain rates and normal, recurring business activities.

Noninterest income for the second quarter of 2019 decreased $1.8 million, or 22.4%, compared to the second quarter of 2018. The decrease was primarily related to a $2.9 million decrease in net gain from sales of loans and a $118,000 decrease in net gain from sales of investment securities, partially offset by a $384,000 increase in service charges on deposit accounts, a $234,000 increase in earnings on bank-owned life insurance (“BOLI”) as well as increases in loan servicing fees, other service fee income, debit card interchange fee income, and other income, whose increases amounted to $614,000 in the aggregate.

The decrease in net gain from sales of loans for the second quarter of 2019 compared to the same period last year was primarily due to higher SBA loans sales and the gain from sale of commercial real estate loans during the second quarter of 2018. The Bank sold $31.9 million of SBA loans and $20.4 million of commercial real estate loans for a net gain of $2.9 million and $927,000, respectively, during the second quarter of 2018.

Three Months Ended

June 30,

 

March 31,

 

June 30,

2019

 

2019

 

2018

Noninterest Income

(dollars in thousands)

Loan servicing fees

$

409

 

$

398

 

$

292

Service charges on deposit accounts

 

1,441

 

 

1,330

 

 

1,057

Other service fee income

 

363

 

 

356

 

 

169

Debit card interchange fee income

 

1,145

 

 

1,071

 

 

1,090

Earnings on BOLI

 

851

 

 

910

 

 

617

Net gain from sales of loans

 

902

 

 

1,729

 

 

3,843

Net gain from sales of investment securities

 

212

 

 

427

 

 

330

Other income

 

1,001

 

 

1,460

 

 

753

Total noninterest income

$

6,324

 

$

7,681

 

$

8,151

Noninterest Expense

Noninterest expense totaled $63.9 million for the second quarter of 2019, an increase of $359,000, or 0.6%, compared with the first quarter of 2019. The increase was driven by higher compensation and benefits expense of $33.8 million, compared to $33.4 million in the prior quarter, and to a lesser extent, higher legal, audit and professional expense of $3.5 million, $547,000 higher than the prior quarter. These increases were partially offset by a $650,000 decline in merger-related expense.

The Company anticipates that total operating expense will range from $64.5 million to $65.5 million for the third quarter of 2019.

Noninterest expense grew by $13.9 million, or 27.7%, compared to the second quarter of 2018. The increase was primarily related to the additional costs from operations, personnel and branches retained from the acquisition of Grandpoint, core deposit intangible (“CDI”) amortization expense, combined with our continued investment in personnel to support our organic growth in loans and deposits, partially offset by a reduction in merger-related expense.

Three Months Ended

June 30,

 

March 31,

 

June 30,

2019

 

2019

 

2018

Noninterest Expense

(dollars in thousands)

Compensation and benefits

$

33,847

 

$

33,388

 

$

29,274

Premises and occupancy

 

7,517

 

 

7,535

 

 

5,045

Data processing

 

3,036

 

 

2,930

 

 

2,747

Other real estate owned operations, net

 

62

 

 

3

 

 

2

FDIC insurance premiums

 

740

 

 

800

 

 

581

Legal, audit and professional expense

 

3,545

 

 

2,998

 

 

1,816

Marketing expense

 

1,425

 

 

1,497

 

 

1,352

Office, telecommunications and postage expense

 

1,311

 

 

1,210

 

 

1,115

Loan expense

 

1,005

 

 

873

 

 

594

Deposit expense

 

3,668

 

 

3,583

 

 

2,302

Merger-related expense

 

5

 

 

655

 

 

943

CDI amortization

 

4,281

 

 

4,436

 

 

1,996

Other expense

 

3,494

 

 

3,669

 

 

2,309

Total noninterest expense

$

63,936

 

$

63,577

 

$

50,076

Income Tax

For the second quarter of 2019, our effective tax rate was 26.9%, compared with 28.3% for the first quarter of 2019 and 27.2% for the second quarter of 2018.

The Company expects our 2019 annual effective tax rate to be in the range of 27% to 28%.

BALANCE SHEET HIGHLIGHTS

Loans

Loans held for investment totaled $8.77 billion at June 30, 2019, a decrease of $93.9 million, or 1.1%, from March 31, 2019, and an increase of $2.49 billion, or 39.7%, from June 30, 2018. The decrease was driven by higher loan prepayments and payoffs, and lower line utilization in the second quarter of 2019, as well as higher loan sales of $106.9 million, which included $82.5 million of non-SBA loans and $24.4 million of SBA loans, compared with $25.5 million of SBA loans sold in the prior quarter. The increase compared to the second quarter of 2018 was impacted by both organic loan growth and by the acquisition of Grandpoint, the latter of which added $2.4 billion of loans before fair value adjustments in the third quarter of 2018.

During the second quarter of 2019, the Bank generated $568.2 million of new loan commitments and $394.8 million of new loan fundings, compared with $549.7 million in new loan commitments and $391.8 million in new loan fundings for the first quarter of 2019 and $530.4 million in new loan commitments and $352.5 million in new loan fundings for the second quarter of 2018.

At June 30, 2019, the ratio of loans held for investment to total deposits was 99.0%, compared with 101.7% and 99.5% at March 31, 2019 and June 30, 2018, respectively.

The following table presents the composition of the loan portfolio for the period indicated:

 

 

June 30,

2019

 

March 31,

2019

 

June 30,

2018

 

(dollars in thousands)

Business loans:

 

Commercial and industrial

$

1,300,083

 

 

$

1,336,520

 

 

$

1,102,586

 

Franchise

 

860,299

 

 

 

813,057

 

 

 

708,957

 

Commercial owner occupied

 

1,667,912

 

 

 

1,648,762

 

 

 

1,310,722

 

SBA

 

180,363

 

 

 

188,757

 

 

 

176,696

 

Agribusiness

 

126,857

 

 

 

134,603

 

 

 

136,962

 

Total business loans

 

4,135,514

 

 

 

4,121,699

 

 

 

3,435,923

 

Real estate loans:

 

 

 

 

 

Commercial non-owner occupied

 

2,121,312

 

 

 

2,124,250

 

 

 

1,219,747

 

Multi-family

 

1,520,135

 

 

 

1,511,942

 

 

 

805,494

 

One-to-four family

 

248,392

 

 

 

279,467

 

 

 

249,495

 

Construction

 

505,401

 

 

 

538,197

 

 

 

321,423

 

Farmland

 

169,724

 

 

 

167,345

 

 

 

136,548

 

Land

 

40,748

 

 

 

46,848

 

 

 

30,246

 

Total real estate loans

 

4,605,712

 

 

 

4,668,049

 

 

 

2,762,953

 

Consumer loans:

 

 

 

 

 

Consumer loans

 

40,680

 

 

 

85,302

 

 

 

81,973

 

Gross loans held for investment

 

8,781,906

 

 

 

8,875,050

 

 

 

6,280,849

 

Deferred loan origination costs/(fees) and premiums/(discounts), net

 

(9,968

)

 

 

(9,195

)

 

 

(3,263

)

Loans held for investment

 

8,771,938

 

 

 

8,865,855

 

 

 

6,277,586

 

Allowance for loan losses

 

(35,026

)

 

 

(37,856

)

 

 

(31,747

)

Loans held for investment, net

$

8,736,912

 

 

$

8,827,999

 

 

$

6,245,839

 

Loans held for sale, at lower of cost or fair value

$

8,529

 

 

$

11,671

 

 

$

13,879

 

The total end-of-period weighted average interest rate on loans, excluding fees and discounts, at June 30, 2019 was 5.11%, compared to 5.13% at March 31, 2019 and 5.12% at June 30, 2018.

The following table presents the composition of the organic loan commitments originated during the period indicated:

 

 

June 30,

2019

 

March 31,

2019

 

June 30,

2018

 

(dollars in thousands)

Business loans:

 

Commercial and industrial

$

149,766

 

$

112,074

 

$

130,833

Franchise

 

92,966

 

 

86,356

 

 

89,242

Commercial owner occupied

 

67,191

 

 

39,049

 

 

80,339

SBA

 

28,023

 

 

41,963

 

 

35,881

Agribusiness

 

9,859

 

 

13,388

 

 

11,945

Total business loans

 

347,805

 

 

292,830

 

 

348,240

Real estate loans:

 

 

 

 

 

Commercial non-owner occupied

 

101,956

 

 

114,809

 

 

59,721

Multi-family

 

35,061

 

 

30,991

 

 

31,101

One-to-four family

 

3,140

 

 

14,689

 

 

5,641

Construction

 

64,059

 

 

74,203

 

 

79,033

Farmland

 

13,044

 

 

17,250

 

 

5,250

Land

 

1,625

 

 

4,050

 

 

750

Total real estate loans

 

218,885

 

 

255,992

 

 

181,496

Consumer loans:

 

 

 

 

 

Consumer loans

 

1,551

 

 

840

 

 

690

Total loan commitments

$

568,241

 

$

549,662

 

$

530,426

Asset Quality and Allowance for Loan and Lease Losses

At June 30, 2019, our allowance for loan and lease losses was $35.0 million, a decrease of $2.8 million from March 31, 2019 and an increase of $3.3 million from June 30, 2018. The provision for loan losses for the second quarter of 2019 was $742,000. During second quarter of 2019, the Company incurred $3.6 million of net charge-offs and released $3.2 million of related specific reserves.

The ratio of allowance for loan losses to loans held for investment at June 30, 2019 amounted to 0.40%, compared to 0.43% and 0.51% at March 31, 2019 and June 30, 2018, respectively. Under the guidance of ASC 820: Fair Value Measurements and Disclosures, the fair value net discount on loans acquired through total bank acquisitions was $52.0 million, or 0.59% of total loans held for investment as of June 30, 2019, compared to $57.2 million, or 0.65% of total loans held for investment as of March 31, 2019 and $22.2 million, or 0.35% of total loans held for investment as of June 30, 2018.

Nonperforming assets totaled $7.7 million, or 0.07% of total assets, at June 30, 2019, a decrease of $5.4 million from March 31, 2019 and an increase of $1.2 million from June 30, 2018. During the second quarter of 2019, nonperforming loans decreased $5.2 million to $7.6 million and other real estate owned decreased $145,000 to $35,000. Total loan delinquencies were $13.5 million, or 0.15% of loans held for investment, at June 30, 2019, compared to $15.8 million, or 0.18% of loans held for investment, at March 31, 2019, and $7.4 million, or 0.12% of loans held for investment, at June 30, 2018.

The decrease in nonperforming assets during the second quarter of 2019 was primarily attributable to the sale of a $4.3 million commercial owner occupied nonperforming loan and the payoff of a $1.1 million nonperforming SBA loan.

 

 

June 30,

2019

 

March 31,

2019

 

June 30,

2018

Asset Quality

(dollars in thousands)

Nonperforming loans

$

7,637

 

 

$

12,858

 

 

$

6,039

 

Other real estate owned

 

35

 

 

 

180

 

 

 

220

 

Other assets owned

 

 

13

 

 

 

183

 

Nonperforming assets

$

7,672

 

 

$

13,051

 

 

$

6,442

 

 

 

 

 

 

 

Allowance for loan losses

$

35,026

 

 

$

37,856

 

 

$

31,747

 

Allowance for loan losses as a percent of total nonperforming loans

 

459

%

 

 

294

%

 

 

526

%

Nonperforming loans as a percent of loans held for investment

 

0.09

 

 

 

0.15

 

 

 

0.10

 

Nonperforming assets as a percent of total assets

 

0.07

 

 

 

0.11

 

 

 

0.08

 

Net loan charge-offs/(recoveries) for the quarter ended

$

3,572

 

 

$

228

 

 

$

108

 

Net loan charge-offs for quarter to average total loans (1)

 

0.04

%

 

%

 

%

Allowance for loan losses to loans held for investment (2)

 

0.40

 

 

 

0.43

 

 

 

0.51

 

Delinquent Loans

 

 

 

 

 

30 - 59 days

$

3,416

 

 

$

2,299

 

 

$

3,583

 

60 - 89 days

 

801

 

 

 

1,982

 

 

 

1,290

 

90+ days

 

9,261

 

 

 

11,481

 

 

 

2,574

 

Total delinquency

$

13,478

 

 

$

15,762

 

 

$

7,447

 

Delinquency as a percentage of loans held for investment

 

0.15

%

 

 

0.18

%

 

 

0.12

%

(1) The ratios are less than 0.01% as of March 31, 2019 and December 31, 2018.

(2) At June 30, 2019, 44% of loans held for investment include a fair value net discount of $52.0 million, or 0.59% of loans held for investment. At March, 2019, 47% of loans held for investment include a fair value net discount of $57.2 million, or 0.65% of loans held for investment. At June, 30, 2018, 40% of loans held for investment include a fair value net discount of $22.2 million, or 0.35% of loans held for investment.

Investment Securities

Investments securities totaled $1.30 billion at June 30, 2019, an increase of $86.1 million, or 7.1%, from March 31, 2019, and $394.7 million, or 43.5%, from June 30, 2018. The increase in the second quarter of 2019 compared to the prior quarter was primarily the result of $147.9 million in purchases and a $24.4 million increase in mark-to-market fair value adjustment, partially offset by $57.0 million in sales and $29.2 million in principal payments, amortization and redemptions. The increase compared to the same period last year was primarily the result of $392.9 million of investment securities from the acquisition of Grandpoint.

Deposits

At June 30, 2019, deposits totaled $8.86 billion, an increase of $146.7 million, or 1.7%, from March 31, 2019 and $2.55 billion, or 40.5%, from June 30, 2018. At June 30, 2019, non-maturity deposits totaled $7.30 billion, or 82% of total deposits, an increase of $178.1 million, or 2.5%, from March 31, 2019 and an increase of $2.16 billion, or 42.1%, from June 30, 2018. During the second quarter of 2019, deposit increases included $133.6 million in money market/savings deposits, $57.6 million in retail certificates of deposits, and $56.4 million in noninterest-bearing deposits, partially offset by decreases of $89.0 million in brokered certificates of deposit and $12.0 million in interest checking, as compared to the first quarter of 2019.

The weighted average cost of deposits for the three-month period ending June 30, 2019 was 0.73%, compared to 0.63% for the three-month period ending March 31, 2019, and 0.50% for the three-month period ending June 30, 2018. The increase in the weighted average cost of deposits in the second quarter of 2019 compared to the prior quarter was primarily driven by higher rates and volume in money market and retail and brokered certificates of deposits as well as lower average noninterest-bearing deposit balances.

 

 

June 30,

2019

 

March 31,

2019

 

June 30,

2018

Deposit Accounts

(dollars in thousands)

Noninterest-bearing checking

$

3,480,312

 

 

$

3,423,893

 

 

$

2,349,464

 

Interest-bearing:

 

 

 

 

 

Checking

 

548,314

 

 

 

560,274

 

 

 

342,986

 

Money market/savings

 

3,272,511

 

 

 

3,138,875

 

 

 

2,446,849

 

Retail certificates of deposit

 

1,065,207

 

 

 

1,007,559

 

 

 

823,425

 

Wholesale/brokered certificates of deposit

 

495,578

 

 

 

584,574

 

 

 

345,626

 

Total interest-bearing

 

5,381,610

 

 

 

5,291,282

 

 

 

3,958,886

 

Total deposits

$

8,861,922

 

 

$

8,715,175

 

 

$

6,308,350

 

 

 

 

 

 

 

Cost of deposits

 

0.73

%

 

 

0.63

%

 

 

0.50

%

Noninterest-bearing deposits as a percentage of total deposits

 

39

%

 

 

39

%

 

 

37

%

Non-maturity deposits as a percent of total deposits

 

82

%

 

 

82

%

 

 

81

%

Core deposits as a percent of total deposits (1)

 

89

%

 

 

88

%

 

 

89

%

(1) Core deposits are all transaction accounts and non-brokered certificates of deposit less than $250,000.

Borrowings

At June 30, 2019, total borrowings amounted to $804.5 million, an increase of $84.5 million, or 11.7%, from March 31, 2019 and an increase of $320.2 million, or 66.1%, from June 30, 2018. Total borrowings for the quarter included $571.6 million of advances from the Federal Home Loan Bank of San Francisco (“FHLB”) and $232.9 million of subordinated debt. In May 2019, the Company issued $125.0 million aggregate principal amount of its 4.875% Fixed-to-Floating Rate Subordinated Notes (the “Notes”) due May 15, 2029. At June 30, 2019, total borrowings represented 6.8% of total assets, compared to 6.2% and 5.9%, as of March 31, 2019 and June 30, 2018, respectively.

On July 8, 2019, the Company used the proceeds from the issuance of the Notes in May 2019 to redeem all $10,310,000 principal amount of Junior Subordinated Deferrable Interest Debentures (the “Subordinated Debentures”) due 2034 issued by PPBI Trust I, a statutory business trust created under the laws of the State of Delaware. The Subordinated Debentures carried an interest rate of three-month LIBOR plus 2.75% per annum, for an effective rate of 5.35% per annum, as of June 30, 2019 and were scheduled to mature on April 6, 2034. The Subordinated Debentures were called at par, plus accrued and unpaid interest, for an aggregate amount of $10,448,000.

Capital Ratios

At June 30, 2019, our ratio of tangible common equity to total assets was 9.96%, compared with 10.32% at March 31, 2019, and 9.91% at June 30, 2018, with a tangible book value per share of $17.92, compared with $17.56 at March 31, 2019 and $16.21 at June 30, 2018.

At June 30, 2019, the Company had a tier 1 leverage ratio of 10.32%, common equity tier 1 capital ratio of 10.82%, tier 1 capital ratio of 11.07% and total capital ratio of 13.54%.

At June 30, 2019, the Bank exceeded all regulatory capital requirements with a tier 1 leverage ratio of 11.66%, common equity tier 1 capital ratio of 12.51%, tier 1 capital ratio of 12.51% and total capital ratio of 12.90%. These capital ratios each exceeded the “well capitalized” standards defined by the federal banking regulators of 5.00% for tier 1 leverage ratio, 6.5% for common equity tier 1 capital ratio, 8.00% for tier 1 capital ratio and 10.00% for total capital ratio.

 

Capital Ratios

 

June 30,

2019

 

March 31,

2019

 

June 30,

2018

Pacific Premier Bancorp, Inc. Consolidated

 

 

 

 

 

 

Tier 1 leverage ratio

 

 

10.32

%

 

 

10.69

%

 

 

10.41

%

Common equity tier 1 capital ratio

 

 

10.82

 

 

 

11.08

 

 

 

10.80

 

Tier 1 capital ratio

 

 

11.07

 

 

 

11.32

 

 

 

11.09

 

Total capital ratio

 

 

13.54

 

 

 

12.58

 

 

 

12.75

 

Tangible common equity ratio (1)

 

 

9.96

 

 

 

10.32

 

 

 

9.91

 

 

 

 

 

 

 

 

Pacific Premier Bank

 

 

 

 

 

 

Tier 1 leverage ratio

 

 

11.66

%

 

 

11.39

%

 

 

11.31

%

Common equity tier 1 capital ratio

 

 

12.51

 

 

 

12.07

 

 

 

12.05

 

Tier 1 capital ratio

 

 

12.51

 

 

 

12.07

 

 

 

12.05

 

Total capital ratio

 

 

12.90

 

 

 

12.49

 

 

 

12.53

 

       

Share Data

 

Book value per share

 

$

32.80

 

 

$

31.97

 

 

$

27.63

 

Tangible book value per share (1)

 

 

17.92

 

 

 

17.56

 

 

 

16.21

 

Dividend per share

 

 

0.22

 

 

 

0.22

 

 

Closing stock price (2)

 

 

30.88

 

 

 

26.53

 

 

 

38.15

 

Shares issued and outstanding

 

 

60,509,994

 

 

 

62,773,299

 

 

 

46,629,118

 

Market Capitalization (2)(3)

 

$

1,868,549

 

 

$

1,665,376

 

 

$

1,778,901

 

 

(1) A reconciliation of the non-U.S. GAAP measures of tangible common equity and tangible book value per share to the U.S. GAAP measures of common stockholders' equity and book value per share is set forth below.

(2) As of the last trading day prior to period end.

(3) Dollars in thousands.

Dividend and Stock Repurchase Program

On July 19, 2019, the Company's Board of Directors declared a $0.22 per share dividend, payable on August 15, 2019 to stockholders of record as of August 2, 2019. During the second quarter of 2019, the Company repurchased 2,219,246 shares of common stock at an average price of $29.70 per share with a total market value of $65.9 million under its stock repurchase program, which authorized the repurchase of up to $100 million of the Company's common stock.

Conference Call and Webcast

The Company will host a conference call at 9:00 a.m. PT / 12:00 p.m. ET on July 23, 2019 to discuss its financial results. Analysts and investors may participate in the question-and-answer session. A live webcast will be available on the Webcasts page of the Company's investor relations website. An archived version of the webcast will be available in the same location shortly after the live call has ended. The conference call can be accessed by telephone at (866) 290-5977 and asking to be joined to the Pacific Premier Bancorp conference call. Additionally, a telephone replay will be made available through July 30, 2019 at (877) 344-7529, conference ID 10132936.

About Pacific Premier Bancorp, Inc.

Pacific Premier Bancorp, Inc. is the holding company for Pacific Premier Bank, one of the largest banks headquartered in Southern California with approximately $11.8 billion in assets. Pacific Premier Bank is a business bank primarily focused on serving small and middle market businesses in the counties of Orange, Los Angeles, Riverside, San Bernardino, San Diego, San Luis Obispo and Santa Barbara, California, as well as markets in the states of Arizona, Nevada and Washington. Through its more than 40 depository branches, Pacific Premier Bank offers a diverse range of lending products including commercial, commercial real estate, construction, and SBA loans, as well as specialty banking products for homeowners' associations and franchise lending nationwide.

FORWARD-LOOKING COMMENTS

The statements contained herein that are not historical facts are forward-looking statements based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company including, without limitation, plans, strategies and goals, and statements about the Company’s expectations regarding revenue and asset growth, financial performance and profitability, loan and deposit growth, yields and returns, loan diversification and credit management, stockholder value creation, tax rates and the impact of the acquisition of Grandpoint and other acquisitions.

Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the Company. There can be no assurance that future developments affecting the Company will be the same as those anticipated by management. The Company cautions readers that a number of important factors could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements. These risks and uncertainties include, but are not limited to, the following: the strength of the United States economy in general and the strength of the local economies in which we conduct operations; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; inflation/deflation, interest rate, market and monetary fluctuations; the effect of acquisitions we may make, including, without limitation, the failure to achieve the expected revenue growth and/or expense savings from such acquisitions, and/or the failure to effectively integrate an acquisition target into our operations; the timely development of competitive new products and services and the acceptance of these products and services by new and existing customers; the impact of changes in financial services policies, laws and regulations, including those concerning taxes, banking, securities and insurance, and the application thereof by regulatory bodies; the effectiveness of our risk management framework and quantitative models; changes in the level of our nonperforming assets and charge-offs; the effect of changes in accounting policies and practices, as may be adopted from time-to-time by bank regulatory agencies, the U.S. Securities and Exchange Commission (“SEC”), the Public Company Accounting Oversight Board, the Financial Accounting Standards Board or other accounting standards setters; possible other-than-temporary impairments of securities held by us; the impact of current governmental efforts to restructure the U.S. financial regulatory system, including any amendments to the Dodd-Frank Wall Street Reform and Consumer Protection Act; changes in consumer spending, borrowing and savings habits; the effects of our lack of a diversified loan portfolio, including the risks of geographic and industry concentrations; our ability to attract deposits and other sources of liquidity; the possibility that we may reduce or discontinue the payments of dividends on common stock; changes in the financial performance and/or condition of our borrowers; changes in the competitive environment among financial and bank holding companies and other financial service providers; geopolitical conditions, including acts or threats of

terrorism, actions taken by the United States or other governments in response to acts or threats of terrorism and/or military conflicts, which could impact business and economic conditions in the United States and abroad; cybersecurity threats and the cost of defending against them, including the costs of compliance with potential legislation to combat cybersecurity at a state, national or global level; unanticipated regulatory or legal proceedings; and our ability to manage the risks involved in the foregoing. Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the 2018 Annual Report on Form 10-K of Pacific Premier Bancorp, Inc. filed with the SEC and available at the SEC’s Internet site (http://www.sec.gov).

The Company undertakes no obligation to revise or publicly release any revision or update to these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made.

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(dollars in thousands)

(Unaudited)

 

ASSETS

June 30,

2019

 

March 31,

2019

 

December 31,

2018

 

September 30,

2018

 

June 30,

2018

Cash and due from banks

$

139,879

 

 

$

122,947

 

 

$

125,036

 

 

$

151,983

 

 

$

96,224

 

Interest-bearing deposits with financial institutions

 

235,505

 

 

 

55,435

 

 

 

78,370

 

 

 

111,229

 

 

 

35,244

 

Cash and cash equivalents

 

375,384

 

 

 

178,382

 

 

 

203,406

 

 

 

263,212

 

 

 

131,468

 

Interest-bearing time deposits with financial institutions

 

2,956

 

 

 

5,896

 

 

 

6,143

 

 

 

6,386

 

 

 

6,633

 

Investments held-to-maturity, at amortized cost

 

42,997

 

 

 

43,894

 

 

 

45,210

 

 

 

46,385

 

 

 

31,965

 

Investment securities available-for-sale, at fair value

 

1,258,379

 

 

 

1,171,410

 

 

 

1,103,222

 

 

 

1,054,877

 

 

 

874,700

 

FHLB, FRB and other stock, at cost

 

92,841

 

 

 

94,751

 

 

 

94,918

 

 

 

98,779

 

 

 

69,663

 

Loans held for sale, at lower of cost or fair value

 

8,529

 

 

 

11,671

 

 

 

5,719

 

 

 

52,880

 

 

 

13,879

 

Loans held for investment

 

8,771,938

 

 

 

8,865,855

 

 

 

8,836,818

 

 

 

8,759,204

 

 

 

6,277,586

 

Allowance for loan losses

 

(35,026

)

 

 

(37,856

)

 

 

(36,072

)

 

 

(33,306

)

 

 

(31,747

)

Loans held for investment, net

 

8,736,912

 

 

 

8,827,999

 

 

 

8,800,746

 

 

 

8,725,898

 

 

 

6,245,839

 

Accrued interest receivable

 

40,420

 

 

 

40,302

 

 

 

37,837

 

 

 

37,683

 

 

 

27,420

 

Other real estate owned

 

35

 

 

 

180

 

 

 

147

 

 

 

356

 

 

 

220

 

Premises and equipment

 

54,218

 

 

 

61,523

 

 

 

64,691

 

 

 

66,103

 

 

 

54,049

 

Deferred income taxes, net

 

2,266

 

 

 

9,275

 

 

 

15,627

 

 

 

26,848

 

 

 

17,183

 

Bank owned life insurance

 

112,054

 

 

 

111,400

 

 

 

110,871

 

 

 

110,354

 

 

 

76,937

 

Intangible assets

 

91,840

 

 

 

96,120

 

 

 

100,556

 

 

 

105,187

 

 

 

37,938

 

Goodwill

 

808,322

 

 

 

808,726

 

 

 

808,726

 

 

 

807,892

 

 

 

494,672

 

Other assets

 

156,628

 

 

 

118,966

 

 

 

89,568

 

 

 

101,041

 

 

 

75,565

 

Total assets

$

11,783,781

 

 

$

11,580,495

 

 

$

11,487,387

 

 

$

11,503,881

 

 

$

8,158,131

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

LIABILITIES:

 

 

 

 

 

 

 

 

 

Deposit accounts:

Noninterest-bearing checking

$

3,480,312

 

 

$

3,423,893

 

 

$

3,495,737

 

 

$

3,434,674

 

 

$

2,349,464

 

Interest-bearing:

 

 

 

 

 

 

 

 

 

Checking

 

548,314

 

 

 

560,274

 

 

 

526,088

 

 

 

495,483

 

 

 

342,986

 

Money market/savings

 

3,272,511

 

 

 

3,138,875

 

 

 

3,225,849

 

 

 

3,261,544

 

 

 

2,446,849

 

Retail certificates of deposit

 

1,065,207

 

 

 

1,007,559

 

 

 

1,009,066

 

 

 

1,045,334

 

 

 

823,425

 

Wholesale/brokered certificates of deposit

 

495,578

 

 

 

584,574

 

 

 

401,611

 

 

 

265,110

 

 

 

345,626

 

Total interest-bearing

 

5,381,610

 

 

 

5,291,282

 

 

 

5,162,614

 

 

 

5,067,471

 

 

 

3,958,886

 

Total deposits

 

8,861,922

 

 

 

8,715,175

 

 

 

8,658,351

 

 

 

8,502,145

 

 

 

6,308,350

 

FHLB advances and other borrowings

 

571,575

 

 

 

609,591

 

 

 

667,681

 

 

 

861,972

 

 

 

379,100

 

Subordinated debentures

 

232,944

 

 

 

110,381

 

 

 

110,313

 

 

 

110,244

 

 

 

105,253

 

Accrued expenses and other liabilities

 

132,884

 

 

 

138,284

 

 

 

81,345

 

 

 

113,143

 

 

 

76,903

 

Total liabilities

 

9,799,325

 

 

 

9,573,431

 

 

 

9,517,690

 

 

 

9,587,504

 

 

 

6,869,606

 

STOCKHOLDERS’ EQUITY:

 

 

 

 

 

 

 

 

 

Common stock

 

595

 

 

 

617

 

 

 

617

 

 

 

617

 

 

 

459

 

Additional paid-in capital

 

1,618,137

 

 

 

1,676,024

 

 

 

1,674,274

 

 

 

1,671,673

 

 

 

1,067,907

 

Retained earnings

 

343,366

 

 

 

325,363

 

 

 

300,407

 

 

 

260,764

 

 

 

232,372

 

Accumulated other comprehensive (loss) income

 

22,358

 

 

 

5,060

 

 

 

(5,601

)

 

 

(16,677

)

 

 

(12,213

)

Total stockholders' equity

 

1,984,456

 

 

 

2,007,064

 

 

 

1,969,697

 

 

 

1,916,377

 

 

 

1,288,525

 

Total liabilities and stockholders' equity

$

11,783,781

 

 

$

11,580,495

 

 

$

11,487,387

 

 

$

11,503,881

 

 

$

8,158,131

 

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(dollars in thousands, except per share data)

(Unaudited)

Three Months Ended

 

Six Months Ended

 

June 30,

2019

 

March 31,

2019

 

June 30,

2018

 

June 30,

2019

 

June 30,

2018

INTEREST INCOME

 

 

 

 

 

 

 

 

 

Loans

$

121,860

 

$

121,476

 

$

85,625

 

$

243,336

 

$

169,798

Investment securities and other interest-earning assets

 

10,554

 

 

9,767

 

 

7,074

 

 

20,321

 

 

13,728

Total interest income

 

132,414

 

 

131,243

 

 

92,699

 

 

263,657

 

 

183,526

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

Deposits

 

15,991

 

 

13,284

 

 

7,756

 

 

29,275

 

 

13,670

FHLB advances and other borrowings

 

3,083

 

 

4,802

 

 

2,125

 

 

7,885

 

 

4,148

Subordinated debentures

 

2,699

 

 

1,751

 

 

1,647

 

 

4,450

 

 

3,256

Total interest expense

 

21,773

 

 

19,837

 

 

11,528

 

 

41,610

 

 

21,074

Net interest income before provision for credit losses

 

110,641

 

 

111,406

 

 

81,171

 

 

222,047

 

 

162,452

Provision for credit losses

 

334

 

 

1,526

 

 

1,761

 

 

1,860

 

 

4,014

Net interest income after provision for credit losses

 

110,307

 

 

109,880

 

 

79,410

 

 

220,187

 

 

158,438

NONINTEREST INCOME

Loan servicing fees

 

409

 

 

398

 

 

292

 

 

807

 

 

637

Service charges on deposit accounts

 

1,441

 

 

1,330

 

 

1,057

 

 

2,771

 

 

2,207

Other service fee income

 

363

 

 

356

 

 

169

 

 

719

 

 

315

Debit card interchange fee income

 

1,145

 

 

1,071

 

 

1,090

 

 

2,216

 

 

2,126

Earnings on BOLI

 

851

 

 

910

 

 

617

 

 

1,761

 

 

1,228

Net gain from sales of loans

 

902

 

 

1,729

 

 

3,843

 

 

2,631

 

 

6,801

Net gain from sales of investment securities

 

212

 

 

427

 

 

330

 

 

639

 

 

336

Other income

 

1,001

 

 

1,460

 

 

753

 

 

2,461

 

 

2,167

Total noninterest income

 

6,324

 

 

7,681

 

 

8,151

 

 

14,005

 

 

15,817

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

33,847

 

 

33,388

 

 

29,274

 

 

67,235

 

 

58,147

Premises and occupancy

 

7,517

 

 

7,535

 

 

5,045

 

 

15,052

 

 

9,826

Data processing

 

3,036

 

 

2,930

 

 

2,747

 

 

5,966

 

 

5,449

Other real estate owned operations, net

 

62

 

 

3

 

 

2

 

 

65

 

 

3

FDIC insurance premiums

 

740

 

 

800

 

 

581

 

 

1,540

 

 

1,192

Legal, audit and professional expense

 

3,545

 

 

2,998

 

 

1,816

 

 

6,543

 

 

3,655

Marketing expense

 

1,425

 

 

1,497

 

 

1,352

 

 

2,922

 

 

2,882

Office, telecommunications and postage expense

 

1,311

 

 

1,210

 

 

1,115

 

 

2,521

 

 

2,195

Loan expense

 

1,005

 

 

873

 

 

594

 

 

1,878

 

 

1,185

Deposit expense

 

3,668

 

 

3,583

 

 

2,302

 

 

7,251

 

 

3,978

Merger-related expense

 

5

 

 

655

 

 

943

 

 

660

 

 

1,879

CDI amortization

 

4,281

 

 

4,436

 

 

1,996

 

 

8,717

 

 

4,270

Other expense

 

3,494

 

 

3,669

 

 

2,309

 

 

7,163

 

 

5,223

Total noninterest expense

 

63,936

 

 

63,577

 

 

50,076

 

 

127,513

 

 

99,884

Net income before income taxes

 

52,695

 

 

53,984

 

 

37,485

 

 

106,679

 

 

74,371

Income tax

 

14,168

 

 

15,266

 

 

10,182

 

 

29,434

 

 

19,066

Net income

$

38,527

 

$

38,718

 

$

27,303

 

$

77,245

 

$

55,305

EARNINGS PER SHARE

 

 

 

 

 

 

 

 

 

Basic

$

0.62

 

$

0.62

 

$

0.59

 

$

1.24

 

$

1.20

Diluted

$

0.62

 

$

0.62

 

$

0.58

 

$

1.23

 

$

1.18

WEIGHTED AVERAGE SHARES OUTSTANDING

 

 

 

 

 

 

 

 

 

Basic

 

61,308,046

 

 

61,987,605

 

 

46,053,077

 

 

61,645,940

 

 

45,973,727

Diluted

 

61,661,773

 

 

62,285,783

 

 

46,702,968

 

 

61,980,133

 

 

46,678,123

SELECTED FINANCIAL DATA

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED AVERAGE BALANCES AND YIELD DATA

   

 

   

 

 

 

     

 

Three Months Ended

June 30, 2019

 

March 31, 2019

 

June 30, 2018

 

 

 

Average

Balance

 

Interest

Income/

Expense

 

Average

Yield/

Cost

 

Average

Balance

 

Interest

Income/

Expense

 

Average

Yield/

Cost

 

Average

Balance

 

Interest

Income/

Expense

 

Average

Yield/

Cost

Assets

(dollars in thousands)

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

187,963

 

$

435

 

0.93

%

 

$

173,613

 

$

378

 

0.88

%

 

$

146,279

 

$

277

 

0.76

%

Investment securities

 

1,396,585

 

 

10,119

 

2.90

 

 

 

1,298,476

 

 

9,389

 

2.89

 

 

 

980,334

 

 

6,797

 

2.77

 

Loans receivable, net (1)(2)

 

8,779,440

 

 

121,860

 

5.57

 

 

 

8,867,159

 

 

121,476

 

5.56

 

 

 

6,253,987

 

 

85,625

 

5.49

 

Total interest-earning assets

 

10,363,988

 

 

132,414

 

5.12

 

 

 

10,339,248

 

 

131,243

 

5.15

 

 

 

7,380,600

 

 

92,699

 

5.04

 

Noninterest-earning assets

 

1,221,985

   

 

 

 

1,224,281

 

 

 

 

 

 

726,922

   

 

Total assets

$

11,585,973

 

 

 

 

 

$

11,563,529

 

 

 

 

 

$

8,107,522

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

   

 

   

 

 

 

 

 

 

 

 

 

Interest checking

$

543,473

 

$

535

 

0.39

%

 

$

536,117

 

$

474

 

0.36

%

 

$

349,721

 

$

117

 

0.13

%

Money market

 

2,978,065

 

 

7,305

 

0.98

 

 

 

2,912,819

 

 

6,534

 

0.91

 

 

 

2,185,310

 

 

3,943

 

0.72

 

Savings