IRVINE, Calif. - Pacific Premier Bancorp, Inc. (NASDAQ: NASDAQ:PPBI), the parent company of Pacific Premier Bank, announced a net income of $47.0 million, or $0.49 per diluted share, for the first quarter of 2024. This marks a significant turnaround from a net loss of $135.4 million, or $1.44 per diluted share, in the fourth quarter of 2023, and a decrease from net income of $62.6 million, or $0.66 per diluted share, in the first quarter of 2023.
The company's return on average assets was 0.99%, return on average equity stood at 6.50%, and return on average tangible common equity was 10.05% for the first quarter of 2024. These figures show a notable recovery from the negative returns recorded in the fourth quarter of 2023 and a slight decline from the returns in the first quarter of 2023.
Pacific Premier Bancorp's total assets were $18.81 billion as of March 31, 2024, compared to $19.03 billion at the end of the previous quarter and $21.36 billion in the same period last year.
Steven R. Gardner, Chairman, Chief Executive Officer, and President of the Company, highlighted the solid financial performance, attributing it to the full quarter's benefit from the securities portfolio repositioning and an 11 basis point expansion in net interest margin to 3.39%. He also emphasized the company's strong capital levels and proactive risk management, which have positioned it well amidst economic and geopolitical uncertainties.
The bank's asset quality trends remain strong, with total delinquency at just 0.09% of loans held for investment and nonperforming assets at 0.34% of total assets. The tangible book value per share increased to $20.33, reflecting a $0.11 increase from the previous quarter.
Pacific Premier Bancorp's common equity tier 1 capital ratio was 15.02%, and the total risk-based capital ratio was 18.23%, indicating robust capital adequacy.
The company's business development efforts led to a $192 million increase in total deposits, primarily driven by a $120 million rise in non-maturity deposits. This has enabled the bank to further reduce Federal Home Loan Bank borrowings by $400 million.
Gardner thanked the Pacific Premier employees for their exceptional efforts during the quarter and expressed gratitude to all stakeholders for their continued support.
This report is based on a press release statement from Pacific Premier Bancorp, Inc.
InvestingPro Insights
Pacific Premier Bancorp, Inc. (NASDAQ: PPBI) has recently caught the attention of investors and analysts alike, as reflected in the latest InvestingPro data and tips. With a market capitalization of $2.17 billion, the company is trading at a high earnings multiple with a P/E ratio of 73.79, which has adjusted to 76.81 based on the last twelve months as of Q4 2023. Despite these high multiples, analysts are optimistic about the company's profitability, forecasting net income growth this year.
A noteworthy InvestingPro Tip is the company's weak gross profit margins, which is a critical factor to consider when evaluating the company's financial health. Moreover, Pacific Premier Bancorp's share price has experienced a significant drop over the past three months, with a 3-month price total return of -18.23%. This could be indicative of market sentiment and the potential for a rebound should the company's fundamentals remain strong.
Investors may also find the dividend yield of 5.84% as of February 8, 2024, to be a compelling aspect of the company's financial profile, potentially offering a steady income stream. The next earnings date is set for April 24, 2024, which will provide further insights into the company's performance and future outlook.
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