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plazabancorp.com

Stage

Acq - P2P | Acquired

Valuation

$0000 

About Plaza Bancorp

Plaza Bancorp is the holding company of the community bank Plaza Bank.

Plaza Bancorp Headquarter Location

Suite 500

Irvine, California, 92612,

United States

949-502-4300

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Latest Plaza Bancorp News

Pacific Premier Bancorp, Inc. Announces Fourth Quarter 2017 Results (Unaudited)

Jan 30, 2018

. (NASDAQ: PPBI) (the “Company”), the holding company of Pacific Premier Bank (the “Bank”), reported net income for the fourth quarter of 2017 of $16.2 million, or $0.36 per diluted share, compared with net income of $20.2 million, or $0.50 per diluted share, for the third quarter of 2017 and net income of $12.0 million, or $0.43 per diluted share, for the fourth quarter of 2016. Net income for the fourth quarter of 2017 includes a $5.6 million reduction in the net deferred tax asset, as a result of H.R.1, formerly known as the "Tax Cuts and Jobs Act", which was signed into law on December 22, 2017. Net income for the fourth quarter also includes $5.4 million of merger-related expense associated with the acquisition of Plaza Bancorp ("Plaza"), which closed on November 1, 2017. For the three months ended December 31, 2017, the Company’s return on average assets was 0.87% and return on average tangible common equity was 10.48%. For the three months ended September 30, 2017, the return on average assets was 1.26% and the return on average tangible common equity was 15.02%. For the three months ended December 31, 2016, the return on average assets was 1.24% and the return on average tangible common equity was 14.17%. Steven R. Gardner, Chairman, President and Chief Executive Officer of the Company, commented on the results, “We completed a very successful year in 2017, doubling the size of the Company, delivering a record level of earnings, and expanding our footprint across the Central Coast and Southern California. Our performance in 2017 reflects our ability to execute on what we believe are highly accretive acquisitions while also generating significant organic balance sheet growth. “We continued to see positive trends throughout the Company, aided by the closing of our acquisition of Plaza Bancorp and the addition of their experienced team of commercial bankers. Excluding the merger-related expense and the deferred tax asset revaluation, our operating results reflect the benefit of improved economies of scale as we realized earnings per share of $0.56 and a return on average assets and return on average tangible common equity of 1.35% and 15.9%, respectively. In addition, during the fourth quarter of 2017, we generated $648 million in loan originations and had well balanced production with seven different lending areas contributing more than $50 million in new loan production. “We believe 2018 will be another positive year for the Company, supported by the healthy economic conditions in our markets. As we approach the $10 billion asset threshold, we will continue to invest in the resources and personnel necessary to strengthen our infrastructure. With the operational integration of Plaza Bancorp largely completed, we will continue to look at other acquisition opportunities that can help us surpass the $10 billion threshold in a meaningful way, increase our scale and efficiencies, and further enhance the value of our franchise,” said Mr. Gardner. FINANCIAL HIGHLIGHTS Net Interest Income and Net Interest Margin Net interest income totaled $78.2 million in the fourth quarter of 2017, an increase of $13.9 million, or 22%, from the third quarter of 2017. The increase in net interest income reflected higher average interest-earning assets of $927 million, primarily related to the acquisition of Plaza, which at acquisition added $1.1 billion of loans before purchase accounting adjustments, and organic loan growth from new loan originations and commitments of $648 million. Net interest margin for the fourth quarter of 2017 was 4.56% compared with 4.34% from the third quarter of 2017. The increase was partially driven by higher loan accretion of $4.7 million, compared to $2.9 million of accretion income in the prior quarter. Excluding the impact of accretion, our core net interest margin, expanded 12 basis points to 4.26%, compared with 4.14% from the prior quarter as portfolio loan yields expanded by 18 basis points overall, primarily as a result of the acquisition of Plaza and, to a lesser extent, higher prepayment fees. Loan prepayments and deferred fees/costs contributed 6 basis points to the current quarter net interest margin compared to 2 basis point in the prior quarter. Partially offsetting these favorable increases was a 4 basis point increase in deposit costs to 32 basis points from 28 basis points, largely due to the addition of Plaza deposits, which had an average cost of 0.61%. Net interest income for the fourth quarter of 2017 increased $35.9 million or 85% compared to the fourth quarter of 2016. The increase was primarily related to an increase in interest-earning assets of $3.1 billion, which resulted primarily from our organic loan growth since the end of the fourth quarter of 2016 and our acquisition of Plaza in the fourth quarter of 2017 and the acquisition of Heritage Oaks Bancorp ("Heritage Oaks") during the second quarter of 2017. (1) Average balance includes nonperforming loans and is net of deferred loan origination fees and unamortized discounts and premiums. (2) Represents net interest income divided by average interest-earning assets. Provision for Loan Losses A provision for loan losses was recorded for the fourth quarter of 2017 in the amount of $2.2 million, compared with a provision for loan losses of $2.0 million in the prior quarter. Our provision for loan losses was primarily due to organic loan growth, and to a lesser extent, $392,000 of net charge-offs. Noninterest income Noninterest income for the fourth quarter of 2017 was $9.5 million, an increase of $1.2 million, or 15%, from the third quarter of 2017. The increase from the third quarter of 2017 was primarily due to a $2.4 million increase in other income, principally due to a $1.8 million increase in recoveries from pre-acquisition charged-off loans, partially offset by a $1.1 million decrease in net gain from the sale of investment securities when compared to the prior quarter. During the quarter, the Bank sold $36 million of Small Business Administration ("SBA") loans for a gain of $2.8 million, compared with $31.9 million of SBA loans sold and a gain of $3.1 million in the prior quarter. Additionally, the Bank sold other loans during the quarter totaling $48.4 million for a net gain of $577,000. Noninterest income for the fourth quarter of 2017 increased by $5.1 million, or 119%, compared to the fourth quarter of 2016. The increase was primarily related to a $3.7 million increase in other income, principally due to a $2.0 million increase in recoveries from pre-acquisition charged-off loans when compared to prior quarter, a $944,000 increase in gain on the sale of loans and a $858,000 increase in deposit fees. The Bank sold securities for a net loss of $252,000 in the fourth quarter of 2017, partially offsetting the increase. Noninterest Expense Noninterest expense totaled $49.9 million for the fourth quarter of 2017, an increase of $10.3 million, or 26%, compared with the third quarter of 2017. The increase was primarily driven by merger-related expense of $5.4 million in the fourth quarter of 2017 compared with $503,000 in the third quarter of 2017. Excluding merger-related expense, noninterest expense increased $5.4 million to $44.5 million, primarily attributed to the acquisition of Plaza as compensation and benefits, premises and occupancy, data processing and CDI amortization increased $4.2 million, $524,000, $416,000 and $350,000, respectively. Noninterest expense grew by $24.5 million, or 97%, in comparison to the fourth quarter of 2016. The increase in expense was primarily related to the additional costs from the operations, personnel and branches retained from the acquisitions of Plaza and Heritage Oaks, combined with our continued investment in personnel to support our organic growth in loans and deposits. Income Tax On December 22, 2017, “H.R.1”, formerly known as the “Tax Cuts and Jobs Act”, was signed into law. Among other items, H.R.1 reduces the federal corporate tax rate to 21% from the existing maximum rate of 35%, effective January 1, 2018. As a result, the Company concluded that this required the Company’s net deferred tax asset to be revalued at the new lower tax rate. The Company has performed an analysis and determined that the value of the net deferred tax asset will be reduced by $5.6 million, which has been included in the fourth quarter 2017 income tax provision. For the fourth quarter of 2017, our effective tax rate was 38.6%, excluding the net deferred tax asset adjustment, compared with 34.4% and 37.7% for the third quarter of 2017 and fourth quarter of 2016, respectively. The increase in the effective tax rate from the third quarter of 2017 was the result of a $1.1 million favorable tax true-up related to the filing of our 2016 return. BALANCE SHEET HIGHLIGHTS Loans Loans held for investment totaled $6.2 billion at December 31, 2017, an increase of $1.2 billion, or 24%, from September 30, 2017, and an increase of $3.0 billion, or 91%, from December 31, 2016. The increases were impacted by the acquisitions of Plaza and Heritage Oaks, as well as organic loan growth. The acquisition of Plaza added $1.1 billion of loans in the fourth quarter of 2017, and the acquisition of Heritage Oaks added $1.4 billion of loans in the second quarter of 2017, both before fair value adjustments. The total end of period weighted average interest rate on loans, excluding fees and discounts, at December 31, 2017 was 4.94%, compared to 4.81% at September 30, 2017 and December 31, 2016. Loan activity during the fourth quarter of 2017 included organic loan originations and commitments of $648 million, an increase of $90.0 million or 16% compared to prior quarter and $263 million or 68% compared to the fourth quarter of 2016. The $648 million of new organic loan originations and commitments during the fourth quarter of 2017 included $139 million of commercial and industrial loans, $106 million of construction loans, $79.4 million of commercial real estate non-owner occupied loans, $65.5 million of franchise loans, $65.0 million of multifamily, $61.3 million of commercial real estate owner occupied loans, $58.3 million of SBA loans, $36.0 million of agribusiness loans and $24.6 million of consumer loans. At December 31, 2017 our loans held for investment to deposit ratio was 101.8%, compared with 99.8% and 103.1% at September 30, 2017 and December 31, 2016, respectively. Asset Quality and Allowance for Loan Losses At December 31, 2017, the allowance for loan losses was $28.9 million, compared to $27.1 million and $21.3 million at September 30, 2017 and December 31, 2016, respectively, with the increases driven principally by our organic loan growth. Loan loss provision for the quarter was $2.2 million while net charge-offs were $392,000. The ratio of allowance for loan losses to total loans held for investment at December 31, 2017 was 0.47%, compared to 0.54% and 0.66% at September 30, 2017 and December 31, 2016, respectively. Under the guidance of ASC 820: Fair Value Measurements and Disclosures, the fair value discount on loans acquired through total bank acquisitions was $29.1 million, or 0.47% of total loans held for investment, as of December 31, 2017, compared to $21.6 million, or 0.43% of total loans held for investment, as of September 30, 2017. Nonperforming assets totaled $3.6 million, or 0.04% of total assets, at December 31, 2017, compared to $887,000, or 0.01% of total assets, at September 30, 2017. During the fourth quarter of 2017, nonperforming loans increased $2.8 million to $3.3 million, and other real estate owned decreased $46,000 to $326,000. Loan delinquencies increased to $10.1 million, or 0.16% of loans held for investment, compared to $3.6 million, or 0.07% of loans held for investment, at September 30, 2017, primarily due to loans acquired from Plaza. (1) 42% of loans held for investment include a fair value net discount of $29.1 million, as of December 31, 2017. Investment Securities Investment securities available for sale totaled $787 million at December 31, 2017, an increase of $83.5 million, or 12%, from September 30, 2017, and an increase of $406 million, or 107%, from December 31, 2016. The increase in the fourth quarter was primarily the result of purchases of approximately $130 million, partially offset by $20.4 million in sales, $22.4 million in principal payments/amortization/redemptions and a mark-to-market fair value adjustment of $3.2 million. Deposits At December 31, 2017, deposits totaled $6.1 billion, an increase of $1.1 billion, or 21%, from September 30, 2017 and $2.9 billion, or 93%, from December 31, 2016. At December 31, 2017, non-maturity deposits totaled $5.0 billion, an increase of $797 million, or 19%, from September 30, 2017 and $2.4 billion, or 95%, from December 31, 2016. The increases were primarily due to the acquisition of Plaza in the fourth quarter of 2017, which contributed $1.1 billion of deposits at the time of acquisition, before purchasing accounting adjustments and the acquisition of Heritage Oaks in the second quarter of 2017, which contributed $1.7 billion of deposits at the time of acquisition, before purchase accounting adjustments, as well as organic deposit growth. The weighted average cost of deposits for the three month period ending December 31, 2017 was 0.32%, an increase from 0.28% for the third quarter of 2017 and from 0.27% for the fourth quarter of 2016. The increase from the third quarter was primarily a result of the acquisition of Plaza, which had an average cost of deposits of 0.61%. Borrowings At December 31, 2017, total borrowings amounted to $641 million, an increase of $179 million, or 39%, from September 30, 2017 and an increase of $244 million, or 61%, from December 31, 2016. Total borrowings for the quarter included $490 million of advances from the Federal Home Loan Bank of San Francisco and $105 million of subordinated debt. At December 31, 2017, total borrowings represented 8.0% of total assets, compared to 7.1% and 9.8%, as of September 30, 2017 and December 31, 2016, respectively. Capital Ratios At December 31, 2017, our ratio of tangible common equity to total assets was 9.42%, compared with 9.41% in the prior quarter, with our book value per share of $26.86 and tangible book value per share of $15.26, compared with tangible book value per share of $14.35 at September 30, 2017 and tangible book value per share of $12.51 at December 31, 2016. At December 31, 2017, the Company had a ratio for tier 1 leverage capital of 10.70%, common equity tier 1 risk-based capital of 10.59%, tier 1 risk-based capital of 10.88% and total risk-based capital of 12.57%. At December 31, 2017, the Bank exceeded all regulatory capital requirements with a ratio for tier 1 leverage capital of 11.68%, common equity tier 1 risk-based capital of 11.88%, tier 1 risk-based capital of 11.88% and total risk-based capital of 12.33%. These capital ratios exceeded the “well capitalized” standards defined by the federal banking regulators of 5.00% for tier 1 leverage capital, 6.5% for common equity tier 1 risk-based capital, 8.00% for tier 1 risk-based capital and 10.00% for total risk-based capital. Conference Call and Webcast The Company will host a conference call at 9:00 a.m. PT / 12:00 p.m. ET on January 30, 2018 to discuss its financial results. Analysts and investors may participate in the question-and-answer session. A live webcast will be available on the Webcasts page of the Company's investor relations website. An archived version of the webcast will be available in the same location shortly after the live call has ended. The conference call can be accessed by telephone at (866) 290-5977 and asking to be joined to the Pacific Premier Bancorp conference call. Additionally a telephone replay will be made available through February 6, 2018 at (877) 344-7529, conference ID 10115384. About Pacific Premier Pacific Premier Bancorp is the holding company for Pacific Premier Bank, one of the largest banks headquartered in Southern California with approximately $8.0 billion in assets. Pacific Premier Bank is a business bank primarily focused on serving small and middle market businesses in the counties of Orange, Los Angeles, Riverside, San Bernardino, San Diego, San Luis Obispo and Santa Barbara, California as well as Clark County, Nevada. Through its 33 depository branches, Pacific Premier Bank offers a diverse range of lending products including commercial, commercial real estate, construction, and SBA loans, as well as specialty banking products for homeowners associations and franchise lending nationwide. FORWARD-LOOKING COMMENTS The statements contained herein that are not historical facts are forward-looking statements based on management's current expectations and beliefs concerning future developments and their potential effects on the Company including, without limitation, statements regarding the Company's growth, management of growth related expense and the impact of acquisitions. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the Company. There can be no assurance that future developments affecting the Company will be the same as those anticipated by management. The Company cautions readers that a number of important factors could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements. These risks and uncertainties include, but are not limited to, the following: the strength of the United States economy in general and the strength of the local economies in which we conduct operations; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; inflation, interest rate, market and monetary fluctuations; the timely development of competitive new products and services and the acceptance of these products and services by new and existing customers; the willingness of users to substitute competitors’ products and services for the Company’s products and services; the impact of changes in financial services policies, laws and regulations (including the Dodd-Frank Wall Street Reform and Consumer Protection Act), tax laws and regulations and of governmental efforts to restructure the U.S. financial regulatory system; technological changes; the effect of acquisitions that the Company may make, if any, including, without limitation, the failure to achieve the expected revenue growth and/or expense savings from its acquisitions; changes in the level of the Company’s nonperforming assets and charge-offs; any oversupply of inventory and deterioration in values of California real estate, both residential and commercial; the effect of changes in accounting policies and practices, as may be adopted from time-to-time by bank regulatory agencies, the Securities and Exchange Commission (“SEC”), the Public Company Accounting Oversight Board, the Financial Accounting Standards Board or other accounting standards setters; possible other-than-temporary impairment of securities held by us; changes in consumer spending, borrowing and savings habits; the effects of the Company’s lack of a diversified loan portfolio, including the risks of geographic and industry concentrations; ability to attract deposits and other sources of liquidity; changes in the financial performance and/or condition of our borrowers; changes in the competitive environment among financial and bank holding companies and other financial service providers; unanticipated regulatory or judicial proceedings; and the Company’s ability to manage the risks involved in the foregoing. Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the 2016 Annual Report on Form 10-K of Pacific Premier Bancorp, Inc. filed with the SEC and available at the SEC’s Internet site ( http://www.sec.gov ). The Company specifically disclaims any obligation to update any factors or to publicly announce the result of revisions to any of the forward-looking statements included herein to reflect future events or developments. GAAP RECONCILIATIONS (dollars in thousands, except per share data) For periods presented below, return on average tangible common equity and adjusted return on average tangible common equity are non-GAAP financial measures derived from GAAP-based amounts. We calculate these figures by excluding CDI amortization expense and exclude the average CDI and average goodwill from the average stockholders' equity during the period. Management believes that the exclusion of such items from these financial measures provides useful information to gain an understanding of the operating results of our core business. However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these adjusted measures, this presentation may not be comparable to other similarly titled adjusted measures reported by other companies. Tangible common equity to tangible assets (the "tangible common equity ratio") and tangible book value per share are non-GAAP financial measures derived from GAAP-based amounts. We calculate the tangible common equity ratio by excluding the balance of intangible assets from common stockholders' equity and dividing by tangible assets. We calculate tangible book value per share by dividing tangible common equity by common shares outstanding, as compared to book value per share, which we calculate by dividing common stockholders' equity by shares outstanding. We believe that this information is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios. Accordingly, we believe that these non-GAAP financial measures provide information that is important to investors and that is useful in understanding our capital position and ratios. However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these measures, this presentation may not be comparable to other similarly titled measures reported by other companies.

  • Where is Plaza Bancorp's headquarters?

    Plaza Bancorp's headquarters is located at Irvine.

  • What is Plaza Bancorp's latest funding round?

    Plaza Bancorp's latest funding round is Acq - P2P.

  • Who are the investors of Plaza Bancorp?

    Investors of Plaza Bancorp include Pacific Premier Bancorp.

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