Pacific Premier Bancorp, Inc. (PPBI) reported net income of $158.8 million for the year ended December 31, 2024, a significant increase from $30.9 million in 2023. This rise stemmed from a $256.8 million increase in noninterest income, primarily due to a $253.9 million net gain from the sale of available-for-sale (AFS) investment securities in 2023, a $5.3 million decrease in the provision for credit losses, and a $4.4 million decrease in noninterest expense. These positive factors were partially offset by an $88.1 million decrease in net interest income and a $50.5 million increase in income tax expense. The company's return on average assets was 0.86% in 2024, compared to 0.15% in 2023.
Net interest income decreased by $88.1 million (14.09%) to $537.0 million in 2024, reflecting a decrease in average interest-earning assets and an increase in the cost of funds. The net interest margin decreased by 8 basis points to 3.21%. Total assets decreased by $1.12 billion (5.9%) to $17.90 billion, primarily due to a decrease in loans and cash, partially offset by an increase in investment securities. Total deposits decreased by $531.9 million (3.5%) to $14.46 billion. The company's loan-to-deposit ratio decreased to 83.3% from 88.6% in 2023.
During 2024, PPBI prioritized capital accumulation, resulting in a decrease in FHLB term borrowings and higher-cost brokered deposits. The company's tangible common equity to tangible assets ratio increased to 11.92% from 10.72% in 2023, and tangible book value per share increased to $20.97 from $20.22. The company's Board of Directors declared a $0.33 per share dividend payable on February 10, 2025. No common stock was repurchased during 2024, despite an existing authorization for up to 4,725,000 shares.
The company's nonperforming assets increased to $28.9 million (0.16% of total assets) at the end of 2024, primarily due to a single commercial banking relationship. The allowance for credit losses on loans held for investment was $178.2 million (1.48% of loans held for investment) at December 31, 2024. The company's noninterest expense decreased by $4.4 million (1.1%) to $402.5 million in 2024. The efficiency ratio was 63.7% in 2024, compared to 56.0% in 2023. The company's effective tax rate was 25.3% in 2024.
The company's outlook includes continued efforts to manage liquidity and capital, while also focusing on loan originations and deepening customer relationships. The company anticipates continuing to pay quarterly cash dividends, but this is subject to the company's financial condition, regulatory limitations, and other factors. The company also faces various risks, including those related to economic conditions, interest rate changes, credit risk, liquidity, competition, and regulatory compliance, as detailed in the 10-K filing.
About PACIFIC PREMIER BANCORP INC
About 10-K Filings
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