Profile: Pacific Premier Bancorp Inc (PPBI.O)
20 May 2019
Pacific Premier Bancorp, Inc., incorporated on December 6, 1996, is a bank holding company. The Company's subsidiary, Pacific Premier Bank (the Bank), is a California state-chartered commercial bank. The Bank's primary focus market is small and middle market businesses. The Bank offers a range of loan products, such as commercial business loans, lines of credit, small business administration (SBA) loans, warehouse credit facilities, commercial real estate (CRE) loans, residential home loans, construction loans and consumer loans. The Bank primarily conducts business throughout California through a network of approximately 40 depository branches in the counties of Los Angeles, Orange, Riverside, San Bernardino and San Diego, San Luis Obispo, and Santa Barbara California. These depository branches are located in the cities Corona, Encinitas, Huntington Beach, Irvine, Los Alamitos, Newport Beach, Murrieta, Palm Desert, Palm Springs, Riverside, Redlands, San Bernardino, San Diego, Seal Beach and Tustin, Atascadero, Goleta, Morro bay, Paso Robles, Santa Barbara, Santa Maria, and Templeton. The Bank provides banking services within its focus markets in California to businesses, including the owners and employees of those businesses, professionals, real estate investors and non-profit organizations. Through its Home Owners' Association (HOA) banking unit, the Bank provides cash management, electronic banking services and credit facilities to HOAs and HOA management companies nationwide. Through the United States Small Business Administration (SBA) lending unit, the Bank provides entrepreneurs and small business owners' access to loans.
The Company originates approximately $120 million of commercial and industrial (C&I) loans, $170 million of quick service restaurant (QSR) franchise loans, $250 million of construction loans, $60 million of non-owner occupied CRE loans, $110 million of SBA loans, $94.4 million of multi-family real estate loans, $48.6 million of owner occupied CRE loans, $93.4 million of warehouse facilities, and $20.8 million of single family real estate loans and other loans. The Company has approximately $2.26 billion in total gross loans outstanding. The Company originates C&I loans secured by business assets, including inventory, receivables, machinery and equipment to businesses located in its primary market area and for franchise loans to QSR nationwide. Its loan types include revolving lines of credit, term loans, seasonal loans and loans secured by liquid collateral, such as cash deposits or marketable securities. The Company originates and purchases loans secured by owner-occupied CRE, such as small office and light industrial buildings, and mixed-use commercial properties located predominantly in California. It also makes loans secured by special purpose properties, such as gas stations and churches. The Company has approximately $300 million of owner-occupied CRE secured loan. The Company has approximately $62.3 million of SBA loans.
The Company provides warehouse repurchase facilities for mortgage bankers operating principally in California. The Company purchases only conforming/conventional, Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC)) and Government guaranteed Federal Housing Administration (FHA), Veterans Administration (VA) and the United States Department of Agriculture (USDA)) credits. The Company's warehouse loans amount to approximately $140 million. It originates and purchases loans that are secured by CRE, such as retail centers, small office and light industrial buildings, and mixed-use commercial properties that are not occupied by the borrower and are located predominantly in California. It also makes loans secured by special purpose properties, such as hotels and self-storage facilities. The Company has approximately $420 million of non-owner occupied CRE secured loans. It originates and purchases loans secured by multi-family residential properties located predominantly in California. The Company has approximately $430 million of multi-family real estate secured loans. The Company's portfolio of one- to four-family loans amount to approximately $80.1 million.
The Company originates loans for the construction of one- to four-family and multi-family residences and CRE properties in its market area. The Company's construction loans amount to approximately $170 million. The Company's land loans amount to approximately $18.3 million. The Company has approximately $5.1 million in other loans.
The Company's investment portfolio includes investments to the United States government securities, federal agency-backed securities, government-sponsored guaranteed mortgage-backed securities (MBS) and collateralized mortgage obligations (CMO), municipal bonds and corporate bonds. The Company's investment securities portfolio amounts to approximately $290 million. The Company has approximately $130.2 million in municipal bonds, $24.7 in collateralized mortgage obligation and $ 126.4 in mortgage-backed securities. The Company's available-for-sale securities amount to approximately $ 279.7 million. The Company's held-to-maturity securities amount to approximately $9.6 million.
Sources of Funds
Deposits, loan repayments and prepayments, and cash flows generated from operations and borrowings are the primary sources of the Company's funds for use in lending, investing and other general purposes. Deposits represent its primary source of funds for its lending and investing activities. The Company offers a range of deposit accounts with a range of interest rates and terms. The deposit accounts are offered through its branch network approximately 20 branches in California and nationwide through its HOA Banking unit. The Company's deposits consist of checking accounts, money market accounts, passbook savings, and certificates of deposit. The Company's deposits amount to approximately $2.2 billion. The Company has approximately $400 million of certificate of deposit accounts maturing in one year or less. The Company has approximately $160 million in brokered deposits.
Pacific Premier Bancorp Inc
17901 von Karman Ave Ste 1200
IRVINE CA 92614-5248