Pacific Premier Announces Securities Portfolio Repositioning; Sold $1.27B Available-For-Sale Securities For Estimated After-Tax Loss Of ~$182.3M; Expects To Deploy Net Proceeds During Q4; Repositioning Contributes $50.4M Net Interest Income On An Annualized Basis
Portfolio Pulse from Benzinga Newsdesk
Pacific Premier Bancorp, Inc. (PPBI) has repositioned its securities portfolio by selling $1.27 billion in available-for-sale securities, resulting in an estimated after-tax loss of approximately $182.3 million. The bank plans to deploy the net proceeds from the sale during the fourth quarter. The repositioning is expected to contribute $50.4 million to the bank's net interest income.
November 20, 2023 | 1:21 pm
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NEUTRAL IMPACT
Pacific Premier Bancorp, Inc. sold $1.27 billion in available-for-sale securities, taking an estimated after-tax loss of $182.3 million, with plans to reinvest the proceeds in Q4, which should increase net interest income by $50.4 million.
The sale of securities by PPBI and the subsequent reinvestment plan is a strategic move that may have mixed short-term impacts. The significant after-tax loss could negatively affect investor sentiment and the stock price. However, the anticipated increase in net interest income could be viewed positively as it may improve the bank's profitability in the long term. The neutral score reflects these offsetting factors.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100