On Wednesday, a third-quarter loss was reported by Pacific Premier Bancorp Inc. which is a Costa Mesa-based bank operator. The bank used more cash out of its $848 million asset value as reported on Sept 30 to safeguard itself against bad loans and also paid more amounts to the Federal Deposit Insurance Corp. in compliance with its bid to improve its deposit insurance fund.

The bank has now reported a loss of $700,000 whereas only a year ago it had shown a profit of $1 million. It has six branches in the county and provides its valuable services to mostly depositors and businesses. A year ago, the bank had set a provision for loan losses at $1.3 million which has now reached up to $2 million in this third quarter. The bank justifies its move by saying that the money set aside was in response to the worsening financial market conditions in which they lend, as it had hugely affected their borrowers’ businesses and the collateral that was securing the bank’s loans.

In the third quarter the loans with late payments of 30 days or more have contributed to 1.4% or $7.9 million loans of the bank. Higher insurance premiums from FDIC have led to additional higher expenses of $200,000. For the next 3 years, FDIC has come up with the idea that banks should prepay their deposit insurance premiums. Pacific Premier showed a 3.7% increase in the net interest income as compared to the past year. A plan to sell shares of $23 million was declared by the bank only last week.

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