Pacific Premier Bancorp Inc Reports Operating Results (10-Q)

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Nov 16, 2009
Pacific Premier Bancorp Inc (PPBI, Financial) filed Quarterly Report for the period ended 2009-09-30.

LIFE Financial Corporation is a savings and loan holding company for Life Bank. The company originates, purchases, sells, securitizes and services primarily non-conventional mortgage loans principally secured by first and second mortgages on one- to four-family residences. The Company makes Liberator Series loans, which are for the purchase of residential real property by borrowers who generally would not qualify for Fannie Mae or Freddie Mac loans, and Portfolio Series loans, which is debt consolidation loans for borrowers whose credit history qualifies them. Pacific Premier Bancorp Inc has a market cap of $16.56 million; its shares were traded at around $3.31 with a P/E ratio of 15.76 and P/S ratio of 0.37. Pacific Premier Bancorp Inc had an annual average earning growth of 14.7% over the past 5 years.

Highlight of Business Operations:

The Bank was founded in 1983 as a state chartered savings and loan, became a federally chartered stock savings bank in 1991 and in March 2007, converted to a California state chartered commercial bank. The Bank is a member of the FHLB of San Francisco, which is a member bank of the Federal Home Loan Bank System, and the Federal Reserve. As of September 30, 2009, the Bank s deposit accounts were insured under federal laws by the Deposit Insurance Fund, which is an insurance fund administered by the FDIC. The maximum deposit insurance coverage allowable under federal law increased in October 2008 from $100,000 to $250,000 per depositor and is in effect through December 31, 2013. On January 1, 2014, the standard insurance amount will return to $100,000 per depositor for all account categories except IRAs and certain retirement accounts, which will remain at $250,000 per depositor.

Capital Raise. On November 9, 2009, we closed our public offering of 4,615,385 shares of common stock at $3.25 per share. We received net proceeds from the offering of approximately $13.9 million, after underwriting discounts and commissions and estimated expenses. The shares were sold in an underwritten public offering. We have granted the underwriter a 30-day option to purchase up to an additional 692,307 shares of common stock to cover over-allotments, if any.

Our total assets were $847.9 million as of September 30, 2009, compared to $740.0 million as of December 31, 2008. The $107.9 million, or 14.6%, increase in total assets was primarily due to an increase of $106.0 million in cash and cash equivalents and of $45.1 million in investment securities available for sale, partially offset by a decrease of $46.6 million in loans. We expect to utilize the increase in cash, in part, to pay down $75 million of the our fixed rate FHLB term advances that mature in the fourth quarter of 2009 and carry a weighted average rate of 4.92%.

Investment securities available for sale totaled $101.7 million at September 30, 2009, compared to $56.6 million at December 31, 2008. The increase was primarily due to the purchase of securities totaling $146.3 million, partially offset by sales of $92.8 million and investment principal received of $10.9 million. At September 30, 2009, the investment securities available for sale consisted of $157,000 in US Treasuries, $84.1 million in government sponsored enterprises (“GSE”) mortgage-backed securities and $17.5 million of private label mortgage-backed securities. Of these private label securities, 46 or $13.4 million were rated as investment grade and 49 or $4.1 million were rated as below investment grade, which is any rating below “BBB”. In addition, we had $36.3 million of the GSE securities pledged as collateral for our $28.5 million of reverse repurchase agreements.

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