Pacific Premier Profits UpTuesday, January 24, 2012
Costa Mesa-based Pacific Premier Bancorp Inc.’s quarterly profit rose 60% from a year earlier.
Net income for the fourth quarter was $2.6 million, or 24 cents per diluted share, up from 14 cents in the year-earlier period.
The bank’s profit for the year totaled $10.6 million, or 99 cents per diluted share.
The bank had profits of $4.2 million, or 38 cents, in 2010.
Pacific Premier is the third-largest bank based in Orange County. It had $961.1 million in assets at the end of 2011, up 16% from the $826.8 total a year earlier.
That puts Pacific Premier about $25 million away from Pacific Mercantile Bank, second on the list of OC-based banks with $986.6 million in assets. The largest bank based here is Opus Bank, with $2.2 billion in assets.
Pacific Premier saw $10.4 million in net interest income for the fourth quarter, up 38% from the same time a year earlier.
The gain was attributed to the combination of the decrease in the costs on interest-bearing liabilities and the increase in the yield on interest-earning assets.
Net interest income for the whole year was $37.4 million, up by 42% from 2010.
The increase was in connection with the acquisition of Palm Springs-based Canyon National Bank in Feb. 2011 from the Federal Deposit Insurance Corp.
Noninterest income also jumped.
Fourth quarter noninterest income totaled $257,000, up from $14,000 in the year-earlier quarter. The bank attributed the surge to higher deposit fees and loan servicing fees related to the Canyon National acquisition. The increase was partially offset by higher losses on loan sales.
Noninterest income for 2011 was $6.5 million, reversing the year-earlier loss of $1.1 million.
Most of the Pacific Premier’s expenses besides interests paid were related to compensation and benefits costs of the Canyon National employees and occupancy expenses for the acquired branch.
The bank picked up lending in 2011.
Total loans summed up to $739 million, a 30% increase from 2010’s total.
Loans for multi-family housing declined, while other categories of loans grew, including land and warehouse facilities.
The bank set aside $527,000 for potential loan losses in the fourth quarter, compared with no provisions a year earlier.
Provisions for the year amounted to $3.3 million, up from $2.1 million in 2010.
The bank held $7.3 million in nonperforming assets at the end of 2011, up from $3.3 million a year earlier.
Deposits totaled $828.9 million by year-end, up 26% from a year ago.