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Dec 31, 2023
Pacific Premier Q4 2023 Earnings Report
Reported a net loss due to investment securities repositioning, while adjusted net income reflected solid operating performance and strong capital ratios.
Key Takeaways
Pacific Premier Bancorp reported a net loss of $135.4 million for Q4 2023, or $1.44 per diluted share, but an adjusted net income of $48.4 million, or $0.51 per diluted share, excluding the impact of securities portfolio repositioning and FDIC special assessment. The company's net interest margin expanded by 16 basis points to 3.28%, and it reduced higher cost wholesale funding by $817 million. Strong capital levels and favorable asset quality measures position the company well for 2024.
Net loss of $135.4 million, or $1.44 per diluted share, but adjusted net income of $48.4 million, or $0.51 per diluted share, excluding certain non-recurring items.
Net interest margin increased 16 basis points to 3.28% due to higher loan and investment securities yields.
Reduced higher cost wholesale funding by $817 million, including $617 million in brokered CDs and $200 million in FHLB borrowings.
Maintained strong asset quality metrics, with low delinquency rates and nonperforming assets.
Pacific Premier
Pacific Premier
Forward Guidance
Pacific Premier Bancorp enters 2024 with strong capital levels, significant liquidity, and favorable asset quality. The company is committed to proactively managing its loan portfolio and responding to market dynamics, including trends in commercial real estate. The bank believes it is well-positioned to deliver value to shareholders, clients, employees, and communities.
Positive Outlook
- Strong capital levels
- Ready access to significant liquidity
- Favorable asset quality measures
- Relationship-based business model
- Proactive communication and monitoring of client businesses
Challenges Ahead
- Challenging operating environment
- Emerging trends in commercial real estate markets
- Potential stress within the loan portfolio
- Uncertainty in domestic or foreign financial markets
- Deposit competition and potential for increased funding costs