Pacific Premier Tops $1B Mark on AssetsThursday, July 19, 2012
Costa Mesa-based Pacific Premier Bancorp Inc. reported increased assets and profitability during the second quarter.
It now has $1.07 billion in assets, up 12% from a year-earlier total. The increase is likely to push Pacific Premier up in ranking among the largest banks in Orange County.
The largest bank here now is Opus Bank in Irvine, with about $2.4 billion in assets. Locally based banks ranked No. 2 to No. 4 all have about $1 billion in assets.
Pacific Premier had $5.8 million in net income during the three months ended June, up from $785,000 for the year-ago period.
Net interest income was $11.3 million in the latest quarter, up 9% from a year earlier.
The growth was due to an increase in interest-earning assets, the bulk of which came from the April acquisition of Palm Desert-based Palm Desert National Bank from the Federal Deposit Insurance Corp., according to Pacific Premier.
The acquisition added $120.9 million in assets.
Non-interest income, which typically is made up of various fees, totaled $6.5 million, a swing back from a loss of $1.1 million a year ago.
Pacific Premier did not set aside any money for potential loan losses in the second quarter, compared with a $1.3 million provision a year earlier.
“The Palm Desert National acquisition increased the level of problem assets on our balance sheet,” Chief Executive Steve Gardner said. But the bank “immediately began resolving credit issues through our multi-pronged approach to loss mitigation that proved to be effective in our prior acquisition,” he said.
Pacific Premier acquired Palm Springs-based Canyon National Bank in February 2011, an FDIC-assisted buy that added about $210 million in assets.
Pacific Premier increased its loans in the second quarter by 15% to $100.6 million, including $90.4 million worth of originations and $63.8 million acquired from Palm Desert National. Loan repayments and other expenses partially offset the gains.
Net loans held by the bank as of June 30 totaled $787.7 million, reflecting a loans-to-deposit ratio of about 87%, up nearly one percentage point from a year-earlier reading.
The bank had $913.2 million in deposits at the end of June, a 12% increase.