The top exec at Pacific Premier Bancorp, the largest bank headquartered in Orange County, hinted earlier this month that he’s hunting for another acquisition.
“We are focused on achieving our organic growth objectives and are well-positioned to continue our disciplined approach pursuing strategic growth opportunities that can strengthen our franchise and create long-term value for our shareholders,” Chief Executive Steve Gardner said when announcing fourth-quarter results on Jan. 20.
In the past decade, the Irvine bank has made 11 acquisitions, including its biggest in 2020 of crosstown rival Opus Bank in a $744 million deal.
“Given its long and successful M&A; history, we expect PPBI to have a competitive edge in the current consolidation environment,” Wedbush analyst David Chiaverini wrote in a note to investors.
Pacific Premier reported fourth quarter net income climbed 26% to $84.8 million, or 89 cents a share, topping the analysts’ consensus for 85 cents.
Last year, it generated $5.7 billion in loans, including $1.5 billion in the fourth quarter alone.
It now has $14.3 billion in loans. Multifamily, its biggest area of lending, increased 14% to $5.9 billion. Meanwhile, the bank is clearly pulling back in single family residential lending, which fell 59% to $95.3 million.
Shares declined about 5.5% to around $40.60 and a $3.8 billion market cap in the three trading sessions after the announcement.
Gardner is bullish on the economy.
“While the actions of the Federal Reserve will certainly play a significant role this year in terms of influencing the operating environment, we believe the fundamental underpinnings to the economy are strong, particularly in our West Coast markets,” Gardner told analysts on a call. “The consumer is in good shape, has low levels of debt and high levels of savings, which should lead to businesses looking to capitalize on higher levels of economic activity.”
