Pacific Premier Bancorp, Inc. (NASDAQ:PPBI) Q3 2022 Earnings Conference Call October 20, 2022 12:00 PM ET
Company Participants
Steven Gardner - Chairman and CEO
Ronald Nicolas - CFO
Conference Call Participants
David Feaster - Raymond James
Matthew Clark - Piper Sandler
Andrew Leischner - KBW
Gary Tenner - D.A. Davidson
Andrew Terrell - Stephens Inc.
Operator
Good day and welcome to the Pacific Premier Third Quarter 2022 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded.
I would now like to turn the conference over to Steve Gardner, Chairman and CEO. Please go ahead.
Steven Gardner
Great. Thank you, Sarah. Good morning, everyone. I appreciate you joining us today. As you're all aware, earlier this morning, we released our earnings report for the third quarter of 2022. We have also published an updated investor presentation that has additional information and disclosures on our financial performance. If you have not done so already, we encourage you to visit our Investor Relations website to download a copy of the presentation.
In terms of our call today, I'll walk-through some of the notable items related to our performance. Ron Nicolas, our CFO will also review a few of the details on our financial results and then we will open up the call to questions. I note that our earnings release and investor presentation include a safe harbor statement relative to the forward-looking comments. I encourage each of you to read-through that statement carefully.
Over the past several quarters, we have taken a number of balance sheet management actions with respect to interest-rate sensitivity, designed to preserve our ability to deliver solid financial performance in an increasingly challenging and uncertain environment. These actions along with the ongoing business development efforts of our talented commercial banking teams served us well during the third quarter.
Our earnings per share and pre-provision net revenue both increased from the prior quarter. Our net income was $73.4 million or $0.77 per share in the third quarter and our PPNR return on average assets increased 8 basis points to 1.85%. Our regulatory capital ratios further strengthened over the prior quarter.
Increased profitability was driven largely by net interest margin expansion from the prior quarter. During the third quarter, our net interest margin increased 12 basis points, as we effectively managed our deposit cost, while realizing higher yields on earning assets. We highlight in our investor presentation our core deposit base, which remains the foundation of our franchise. Our cost of core deposits remained relatively low at 11 basis points in the third quarter, which reflects our relationship focused business model that has resulted in more than 38% of our deposits comprised of non-interest bearing deposits.