Pacific Premier Bancorp Inc has a market cap of $51.2 million; its shares were traded at around $5.05 with a P/E ratio of 25.6 and P/S ratio of 1.2. PPBI is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:In the third quarter of 2010, we recorded net income of $1.8 million, or $0.17 per diluted share, compared to net loss of $7,000 or less than $0.01 per share for the third quarter of 2009.
The Company s pre-tax income totaled $2.9 million in the third quarter of 2010, compared with a pre-tax loss of $111,000 from the same period in the prior year. The $3.0 million favorable change between quarters was primarily due to:
For the first nine months of 2010, the Company s net income totaled $2.6 million or $0.24 per share on a diluted basis, compared with a net loss of $183,000 or $0.04 per share in the first nine months of 2009.
Net interest income totaled $7.4 million in the third quarter of 2010, up $1.6 million or 28.7% from the third quarter of 2009. The increase reflected a higher net interest margin of 3.86% in the current quarter, compared with 2.98% in the prior year quarter, partially offset by a $4.4 million decrease in average interest-earning assets in the current quarter. The increase in the current quarter net interest margin of 88 basis points reflected the average costs on interest-bearing liabilities decreasing more rapidly than the average yield on interest-earning assets. The decrease in costs on our interest-bearing liabilities of 98 basis points resulted from the decline in our cost of deposits of 72 basis points and borrowings of 39 basis points during the current quarter. These lower costs were partially offset by a lower yield on our current quarter interest-earning assets primarily associated with a decrease in the yield on investment securities of 130 basis points compared to the same quarter in the prior year. The lower yield on our investment securities was primarily due to the decision to reduce our credit risk exposure in our securities portfolio by selling private label securities with higher credit risk and replacing them with lower yielding, lower credit risk GSE securities. These GSE securities also enhanced our regulatory capital as they have a lower asset risk weighting than private label securities.
For the first nine months of 2010, net interest income totaled $20.9 million, up $3.9 million or 22.8% from the same period in the prior year. The increase was associated with a higher net interest margin, which increased by 63 basis points to 3.72%, and higher interest-earning assets, which grew by $15.7 million to $749.5 million.
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