Pacific Premier Bancorp, Inc. (NASDAQ:PPBI) Q2 2024 Earnings Conference Call July 24, 2024 12:00 PM ET
Company Participants
Steve Gardner - Chairman and CEO
Ron Nicolas - CFO
Conference Call Participants
David Feaster - Raymond James
Matthew Clark - Piper Sandler
Chris McGratty - KBW
Gary Tenner - D.A. Davidson
Andrew Terrell - Stephens
Operator
Good day, and welcome to the Pacific Premier Bancorp 2024 Second Quarter 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.
Steve Gardner
Very good. Thank you, Nick. Good morning, everyone. I appreciate you joining us today. As you are all aware, we released our earnings report for the second quarter of 2024 earlier this morning.
We have also published an updated investor presentation with additional information and disclosures on our financial results. If you have not done so already, we encourage you to visit our Investor Relations website to download a copy of the presentation and related materials. 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 carefully read that statement. On today's call, I'll walk through some of the notable items related to our second quarter performance. Ron Nicolas, our CFO, will also review a few of the details surrounding our financial results, and then we will open up the call to questions.
During the second quarter, our team delivered consistent results as we navigate a challenging operating environment marked by prolonged elevated interest rates, competitive loan and deposit pricing dynamics, and heightened regulatory expectations.
Our second quarter results reflect Pacific Premier's ongoing support of our small- and medium-sized business clients along with our commitment to expanding existing relationships and driving new customers to the bank.
Looking now at the results for the second quarter. We generated earnings per share of $0.43, a return on average assets of 90 basis points and a return on tangible common equity of 8.9%. The prolonged higher interest rate environment continued to impact our cost of deposits, which increased 14 basis points to 1.73%, though our funding costs remain low on a relative basis compared to our peers.
Loan production increased to $151 million, but was offset by higher loan payoffs as our clients utilized excess liquidity to reduce debt. This dynamic that has impacted both sides of the balance sheet for the past few quarters, in part reflects the high-quality nature of the businesses we attract to the franchise.