Curious about Pacific Premier Bank net worth and how they perform financially? In this article, Ando Money takes you through the bank’s key drivers of growth, revenue, and financial health. Let’s dive in!
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Pacific Premier Bank |
| Full Name | Pacific Premier Bancorp, Inc. |
| Traded as | NASDAQ: PPBI |
| ISIN | US69478X1054 |
| Founded | 1983 |
| Founders | N/A |
| Country/Territory | United States |
| Headquarters | Irvine, California |
| Chief Executive Officer | Steven R. Gardner |
| Number of Employees | N/A |
| Market Cap | $2.37 Billion |
| Total Assets | $18.33 Billion |
| Total Equity | N/A |
| Revenue | N/A |
| Net Income | $41.9 Million (Q2 2024) |
What is the Net Worth/ Market Cap Of Pacific Premier Bank in 2024?
As of September 2024, Pacific Premier Bancorp has a market capitalization of $2.37 billion. This places the bank among largest U.S. banks in terms of market value.
While its size and market cap may not reach the levels of banking giants, Pacific Premier has grown consistently through a focus on community banking and loan services.
In comparison, other banks in the industry like JP Morgan Chase or Bank of America have significantly larger market caps, but Pacific Premier is steadily increasing its net worth, making it a solid performer within its category.
Here are a few banks related to Pacific Premier Bank:
- JP Morgan Chase
- Bank of America
- Wells Fargo
- U.S. Bank
- PNC Financial Services
- Truist Financial
- Regions Bank
For more information on the world’s largest financial institutions, check out this detailed resource on the largest banks in the world.
Pacific Premier Bank Financial Performance Overview
Key Drivers of Revenue Growth
One of the main revenue drivers for Pacific Premier Bank is its diverse loan portfolio, which stood at $12.49 billion in the second quarter of 2024.
The portfolio includes commercial real estate loans, multifamily loans, and Small Business Administration (SBA) loans. This variety allows the bank to mitigate risk while ensuring steady growth across different sectors.
A significant contributor to revenue has been the growth in commercial real estate loans, which reflects a strong demand from businesses looking for expansion and investment opportunities.
The bank’s net interest income reached $136.4 million in Q2 2024, contributing heavily to its profitability. However, compared to the previous quarter, this represents a decrease due to higher deposit costs and lower loan balances.
This shows the impact of increasing interest rates and a competitive market, but the bank remains resilient through prudent balance sheet management.
Net interest margin was 3.26%, down slightly from 3.39% in the previous quarter, reflecting tighter margins as deposit rates climb.
Profitability Metrics and Performance
Pacific Premier Bank reported a net income of $41.9 million for Q2 2024.
The bank’s return on average equity (ROAE) came in at 5.76%, while return on average assets (ROAA) was 0.90%, which indicates how efficiently the bank uses its assets to generate profits.
While these numbers represent a decline compared to earlier quarters, they reflect stable performance in a challenging economic environment marked by rising interest rates and inflationary pressures.
The bank’s solid profitability metrics showcase its ability to manage risks effectively while growing its earnings.
In terms of dividends, Pacific Premier Bank has continued to reward its shareholders with a steady $0.33 per share dividend, maintaining a consistent payout even amid a dynamic market.
Asset Quality and Financial Stability
Asset quality remains strong for Pacific Premier Bank, with nonperforming assets accounting for just 0.28% of its total assets.
This is a key indicator of financial health, as it shows the bank’s success in maintaining a low level of bad loans and defaults.
The bank’s delinquency rate stood at 0.14% of loans held for investment, another reassuring sign for stakeholders about the quality of the loan book.
Additionally, Pacific Premier Bank maintains a robust allowance for credit losses of $183.8 million, reflecting prudent credit risk management and the bank’s ability to absorb potential loan defaults.
This aligns with its historically conservative approach to lending, especially in more volatile sectors like commercial real estate.
Deposit Growth and Funding Sources
Deposits form the backbone of the bank’s financial stability, with total deposits reaching $14.63 billion by mid-2024.
A significant portion of these deposits (31.6%) are noninterest-bearing, which helps to reduce the overall cost of funds.
The bank’s cost of deposits rose to 1.73%, reflecting the broader market trend of increasing interest rates.
Despite this, Pacific Premier Bank has managed to maintain an efficient funding structure by prioritizing noninterest-bearing deposits and reducing reliance on higher-cost deposits.
Additionally, the loan-to-deposit ratio of 85.4% indicates that the bank has sufficient liquidity to meet its lending needs, while maintaining a buffer to ensure stability in case of an economic downturn.
Capital Adequacy and Growth Potential
Pacific Premier Bank’s strong capital ratios demonstrate its ability to weather market fluctuations.
As of Q2 2024, the Common Equity Tier 1 Capital Ratio stood at 15.89%, and the Total Capital Ratio was 19.01%.
These figures place the bank among the top-tier institutions in terms of capital adequacy, allowing it to continue expanding its loan portfolio while maintaining a solid financial footing.
The bank’s tangible common equity ratio of 11.41% further underscores its focus on long-term growth and financial stability.
This strong capital position enables Pacific Premier Bank to explore new opportunities for expansion, whether through organic growth or strategic acquisitions, which could further enhance its market cap and net worth.
FAQs about Pacific Premier Bank
What is the current financial status of the Pacific Premier Bank?
The bank’s total assets stand at $18.33 billion as of mid-2024. Its market cap is $2.37 billion. The bank holds a Common Equity Tier 1 Capital Ratio of 15.89% and Total Capital Ratio of 19.01%.
How does the Pacific Premier Bank generate revenue?
It earns revenue primarily from its loan portfolio and net interest income of $136.4 million in Q2 2024. Noninterest income, including trust custodial account fees, also adds to revenue.
What is the performance of the loan portfolio?
The bank’s loan portfolio totals $12.49 billion as of Q2 2024. Its loan-to-deposit ratio is 85.4%, indicating effective loan management.
How does the bank maintain asset quality?
It keeps strong asset quality with nonperforming assets at 0.28% of total assets. The allowance for credit losses is $183.8 million, providing protection against potential defaults.
What role does noninterest income play?
Noninterest income contributes $18.2 million to total revenue, primarily from trust custodial account fees and debit card interchange fees.
What is the bank’s dividend policy?
It pays a $0.33 per share dividend, reflecting its commitment to rewarding shareholders while ensuring growth.
How does the bank compare to other banks in market cap?
With a market cap of $2.37 billion, it ranks as a mid-sized bank, growing steadily and providing competitive services.
Conclusion
Pacific Premier Bank’s financial strength remains solid, supported by robust growth and strong revenue streams.
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