Document Contents

<ACCESSION-NUMBER>0001028918-20-000155
<TYPE>10-Q
<PUBLIC-DOCUMENT-COUNT>106
<PERIOD>20200630
<FILING-DATE>20200810
<DATE-OF-FILING-DATE-CHANGE>20200807
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<COMPANY-DATA>
<CONFORMED-NAME>PACIFIC PREMIER BANCORP INC
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<ASSIGNED-SIC>6022
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<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
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<FILE-NUMBER>000-22193
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<BUSINESS-ADDRESS>
<STREET1>17901 VON KARMAN AVE
<STREET2>SUITE 1200
<CITY>IRVINE
<STATE>CA
<ZIP>92614
<PHONE>949-864-8000
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2020

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _______

Commission File Number 0-22193

(Exact name of registrant as specified in its charter)


Delaware			33-0743196
(State or other jurisdiction of incorporation or organization)			(I.R.S Employer Identification No.)

17901 Von Karman Avenue, Suite 1200, Irvine, California 92614

(Address of principal executive offices and zip code)

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act).

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer
(Do not check if a smaller reporting company)

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Exchange Act Rule 12b-2). Yes ☐ No ☒

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol

Name of Each Exchange on Which Registered

Common Stock, par value $0.01 per share

PPBI

Nasdaq Stock Market

The number of shares outstanding of the registrant’s common stock as of July 31, 2020 was 94,351,866.

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES

FOR THE QUARTER ENDED JUNE 30, 2020

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Dollars in thousands, except share data)


ASSETS	June 30, 2020		December 31, 2019
Cash and due from banks	$	158,784	$	135,847
Interest-bearing deposits with financial institutions	1,182,946		191,003
Cash and cash equivalents	1,341,730		326,850
Interest-bearing time deposits with financial institutions	2,845		2,708
Investments held-to-maturity, at amortized cost (fair value of $34,179 and $38,760 as of June 30, 2020 and December 31, 2019, respectively)	32,557		37,838
Investment securities available-for-sale, at fair value	2,336,066		1,368,384
FHLB, FRB and other stock, at cost	94,658		93,061
Loans held for sale, at lower of cost or fair value	1,007		1,672
Loans held for investment	15,082,884		8,722,311
Allowance for credit losses	(282,271)		(35,698)
Loans held for investment, net	14,800,613		8,686,613
Accrued interest receivable	78,408		39,442
Other real estate owned	386		441
Premises and equipment	76,542		59,001
Deferred income taxes, net	105,859		—
Bank owned life insurance	305,901		113,376
Intangible assets	94,550		83,312
Goodwill	901,166		808,322
Other assets	344,786		154,992
Total assets	$	20,517,074	$	11,776,012
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Deposit accounts:
Noninterest-bearing checking	$	5,899,442	$	3,857,660
Interest-bearing:
Checking	3,098,454		586,019
Money market/savings	6,060,031		3,406,988
Retail certificates of deposit	1,651,976		973,465
Wholesale/brokered certificates of deposit	266,790		74,377
Total interest-bearing	11,077,251		5,040,849
Total deposits	16,976,693		8,898,509
FHLB advances and other borrowings	41,006		517,026
Subordinated debentures	501,375		215,145
Deferred income taxes, net	—		1,371
Accrued expenses and other liabilities	343,353		131,367
Total liabilities	17,862,427		9,763,418
STOCKHOLDERS’ EQUITY
Preferred stock, $0.01 par value; 1,000,000 authorized; none issued and outstanding	—		—
Common stock, $0.01 par value; 150,000,000 shares authorized at June 30, 2020 and December 31, 2019; 94,350,902 shares and 59,506,057 shares issued and outstanding, respectively.	930		586
Additional paid-in capital	2,348,415		1,594,434
Retained earnings	247,078		396,051
Accumulated other comprehensive income	58,224		21,523
Total stockholders’ equity	2,654,647		2,012,594
Total liabilities and stockholders’ equity	$	20,517,074	$	11,776,012

Accompanying notes are an integral part of these consolidated financial statements.

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME/(LOSS)

(Dollars in thousands, except share data)


	Three Months Ended										Six Months Ended
	June 30,		March 31,		June 30,		June 30,
	2020		2020		2019		2020		2019
INTEREST INCOME
Loans	$	133,339	$	113,265	$	121,860	$	246,604	$	243,336
Investment securities and other interest-earning assets	10,783		10,524		10,554		21,307		20,321
Total interest income	144,122		123,789		132,414		267,911		263,657
INTEREST EXPENSE
Deposits	9,655		10,487		15,991		20,142		29,275
FHLB advances and other borrowings	217		1,081		3,083		1,298		7,885
Subordinated debentures	3,958		3,046		2,699		7,004		4,450
Total interest expense	13,830		14,614		21,773		28,444		41,610
Net interest income before provision for credit losses	130,292		109,175		110,641		239,467		222,047
Provision for credit losses	160,635		25,454		334		186,089		1,860
Net interest (loss) income after provision for credit losses	(30,343)		83,721		110,307		53,378		220,187
NONINTEREST INCOME
Loan servicing fees	434		480		409		914		807
Service charges on deposit accounts	1,399		1,715		1,441		3,114		2,771
Other service fee income	297		311		363		608		719
Debit card interchange fee income	457		348		1,145		805		2,216
Earnings on bank-owned life insurance	1,314		1,336		851		2,650		1,761
Net (loss) gain from sales of loans	(2,032)		771		902		(1,261)		2,631
Net (loss) gain from sales of investment securities	(21)		7,760		212		7,739		639



Trust administrative fees	2,397		—		—		2,397		—
Other income	2,653		1,754		1,001		4,407		2,461
Total noninterest income	6,898		14,475		6,324		21,373		14,005
NONINTEREST EXPENSE
Compensation and benefits	43,011		34,376		33,847		77,387


PART I - FINANCIAL INFORMATION

Item 1 - Financial Statements

Consolidated Statements of Financial Condition			3

Consolidated Statements of Income/(Loss)			4

Consolidated Statements of Comprehensive Income/(Loss)			5

Consolidated Statements of Stockholders’ Equity			6

Consolidated Statements of Cash Flows			8

Notes to Consolidated Financial Statements			10

Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations			87

Item 3 - Quantitative and Qualitative Disclosures About Market Risk			136

Item 4 - Controls and Procedures			138

PART II - OTHER INFORMATION			139

Item 1 - Legal Proceedings			139

Item 1A - Risk Factors			140

Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds			143

Item 3 - Defaults Upon Senior Securities			144

Item 4 - Mine Safety Disclosures			144

Item 5 - Other Information			144

Item 6 - Exhibits			145

SIGNATURE			146

Section 1: 10-Q (10-Q)