The Costa Mesa-based parent company of Pacific Premier Bank on Thursday reported a second-quarter profit that reversed a loss a year earlier and scaled back the amount of money it sets aside to offset bad loans.
Pacific Premier Bancorp Inc., which operates the second largest bank in the county by assets, reported a profit $337,000, compared to a net loss of $713,000 a year earlier.
The profit signals improvement at Pacific Premier, which, like other banks, has seen profits hurt in the past year or so as it has dealt with troubled loans.
Pacific Premier, the county’s No. 2 homegrown bank after Costa Mesa’s Pacific Mercantile, provides business and consumer banking services. It has five branches in the county and one in San Bernardino.
In the second quarter, the company cut the amount it sets aside for bad loans by $1.7 million from a year earlier. The company has about $9 million set aside for loan losses.
Pacific Premier did see a $1.6 million loss in the quarter on the sale of underperforming and nonperforming loans (typically 90 days past due), compared with no losses on sales a year earlier.
Foreclosure and management costs on commercial real estate were $500,000 in the quarter.
The banks interest income, the equivalent of revenue, was down 12% from a year earlier to $9.9 million as the market for new loans remains soft.
The bank’s deposits hit $632 million in the quarter, up 15% from a year earlier, helped by more depositors in its savings accounts and certificates of deposit.
Nonperforming assets, mostly loans, declined by $6.7 million to 0.48% of total assets.
Pacific Premier Bancorp’s lightly traded shares were up 5% in afternoon New York trading to a market value of about $40 million.
