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PACIFIC PREMIER BANCORP INC0001028918false00010289182024-04-242024-04-24


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


Date of Report (Date of earliest event reported) April 24, 2024
PACIFIC PREMIER BANCORP, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-22193 33-0743196
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(I.R.S. Employer
Identification No.)

17901 Von Karman Avenue, Suite 1200, Irvine, CA 92614
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code (949) 864-8000

Not Applicable
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth Company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class Trading Symbol Name of Each Exchange on Which Registered
Common Stock, par value $0.01 per share PPBI NASDAQ Global Select Market




ITEM 2.02         RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On April 24, 2024, Pacific Premier Bancorp, Inc. (“PPBI”) issued a press release setting forth its (unaudited) financial results for the first quarter of 2024. A copy of PPBI's press release is furnished as Exhibit 99.1 and hereby incorporated by reference. A presentation regarding PPBI’s financial results for the three months ended March 31, 2024 is furnished as Exhibit 99.2 and incorporated herein by reference.

The information furnished under Item 2.02 and Item 9.01 of this Current Report on Form 8-K, including Exhibit 99.1 and Exhibit 99.2 to this Current Report on Form 8-K, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liabilities under that Section, nor shall it be deemed incorporated by reference in any registration statement or other filings of PPBI under the Securities Act of 1933, as amended, except as shall be set forth by specific reference in such filing.

ITEM 8.01         OTHER EVENTS

Quarterly Dividend

On April 22, 2024, PPBI’s Board of Directors declared a $0.33 per share dividend, payable on May 13, 2024 to shareholders of record on May 6, 2024.

ITEM 9.01    FINANCIAL STATEMENTS AND EXHIBITS

104 Cover Page Interactive Data File (embedded within the Inline XBRL document)


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


PACIFIC PREMIER BANCORP, INC.
Dated: April 24, 2024 By:
/s/ STEVEN R. GARDNER
Steven R. Gardner
Chairman, Chief Executive Officer, and President


EX-99.1 2 ppbi_exx991xearnings-2024x.htm EX-99.1 Document

Exhibit 99.1

Pacific Premier Bancorp, Inc. Announces First Quarter 2024 Financial Results and a Quarterly Cash Dividend of $0.33 Per Share

First Quarter 2024 Summary
 
•Net income of $47.0 million, or $0.49 per diluted share
•Return on average assets of 0.99%, return on average equity of 6.50%, and return on average tangible common equity(1) of 10.05%
•Pre-provision net revenue (“PPNR”)(1) to average assets of 1.43%, annualized
•Net interest margin expanded 11 basis points to 3.39%
•Cost of deposits of 1.59%, and cost of non-maturity deposits(1) of 1.06%
•Non-maturity deposits(1) to total deposits of 84.42%
•Total delinquency of 0.09% of loans held for investment
•Nonperforming assets to total assets of 0.34%
•Tangible book value per share(1) increased $0.11 compared to the prior quarter to $20.33
•Common equity tier 1 capital ratio of 15.02%, and total risk-based capital ratio of 18.23%
•Tangible common equity ratio (“TCE”)(1) increased to 10.97%

Irvine, Calif., April 24, 2024 -- Pacific Premier Bancorp, Inc. (NASDAQ: PPBI) (the “Company” or “Pacific Premier”), the holding company of Pacific Premier Bank (the “Bank”), reported net income of $47.0 million, or $0.49 per diluted share, for the first quarter of 2024, compared with net loss of $135.4 million, or $1.44 per diluted share, for the fourth quarter of 2023, and net income of $62.6 million, or $0.66 per diluted share, for the first quarter of 2023.
    
For the first quarter of 2024, the Company’s return on average assets (“ROAA”) was 0.99%, return on average equity (“ROAE”) was 6.50%, and return on average tangible common equity (“ROATCE”)(1) was 10.05%, compared to (2.76)%, (19.01)%, and (28.01)%, respectively, for the fourth quarter of 2023, and 1.15%, 8.87%, and 13.89%, respectively, for the first quarter of 2023. Total assets were $18.81 billion at March 31, 2024, compared to $19.03 billion at December 31, 2023, and $21.36 billion at March 31, 2023.

Steven R. Gardner, Chairman, Chief Executive Officer, and President of the Company, commented, “Our team delivered solid first quarter financial performance with net income of $47.0 million, or $0.49 per share, reflecting a full quarter’s benefit from the securities portfolio repositioning as our net interest margin expanded 11 basis points to 3.39%. Our commitment to prudent and proactive risk, liquidity, and capital management in the current dynamic environment continues to drive strong capital levels that rank amongst the top of our peers, with our TCE(1) ratio increasing 25 basis points to 10.97%.

“On the business development front, our dedicated relationship managers, retail branch bankers, and treasury management teams continue to successfully collaborate to expand our client base and deepen existing client relationships. During the first quarter, total deposits increased by $192 million, driven by a $120 million increase in non-maturity deposits, enabling us to further reduce FHLB borrowings by $400 million. Some of the quarterly deposit inflows were seasonal in nature, which we expect to reverse as we move through the year.

“First quarter asset quality trends remained strong, although nonperforming loans increased to $63.8 million, primarily the result of a single, diversified, Pacific Northwest commercial banking relationship, wherein the borrower remains current on all payments. Our team is actively engaged with the client and continues to approach the relationship consistent with our longstanding proactive approach to credit risk management.

(1) Reconciliations of the non–U.S. generally accepted accounting principles (“GAAP”) measures are set forth at the end of this press release.
1


“With our strong capital levels combined with our significant loss absorbing capacity, we have strategically positioned the company to perform in a variety of economic and credit scenarios. There are a number of factors contributing to an uncertain outlook, including ongoing inflationary pressures, interest rate volatility, and domestic and international geopolitical risks. Our franchise has been built on a culture of risk management and a proactive approach to building sustainable franchise value. We will continue to manage the business proactively and prudently while leveraging the strength of our relationship banking teams to capitalize on compelling opportunities as they may arise. I would like to thank all Pacific Premier employees for their outstanding efforts during the quarter, as well as all of our stakeholders for continuing to support our organization.”

2


FINANCIAL HIGHLIGHTS
Three Months Ended
  March 31, December 31, March 31,
(Dollars in thousands, except per share data) 2024 2023 2023
Financial highlights (unaudited)
Net income (loss) $ 47,025  $ (135,376) $ 62,562 
Net interest income 145,127  146,789  168,610 
Diluted earnings (loss) per share 0.49  (1.44) 0.66 
Common equity dividend per share paid 0.33  0.33  0.33 
ROAA
0.99  % (2.76) % 1.15  %
ROAE
6.50  (19.01) 8.87 
ROATCE (1)
10.05  (28.01) 13.89 
Pre-provision net revenue (loss) to average assets (1)
1.43  (3.88) 1.63 
Net interest margin 3.39  3.28  3.44 
Cost of deposits 1.59  1.56  0.94 
Cost of non-maturity deposits (1)
1.06  1.02  0.54 
Efficiency ratio (1)
60.2  60.1  51.7 
Noninterest expense as a percent of average assets 2.16  2.09  1.87 
Total assets $ 18,813,181  $ 19,026,645  $ 21,361,564 
Total deposits 15,187,828  14,995,626  17,207,810 
Non-maturity deposits (1) as a percent of total deposits
84.4  % 84.7  % 82.6  %
Noninterest-bearing deposits as a percent of total deposits 32.9  32.9  36.1 
Loan-to-deposit ratio 85.7  88.6  82.4 
Nonperforming assets as a percent of total assets 0.34  0.13  0.14 
Delinquency as a percentage of loans held for investment 0.09  0.08  0.15 
Allowance for credit losses to loans held for investment (2)
1.48  1.45  1.38 
Book value per share $ 30.09  $ 30.07  $ 29.58 
Tangible book value per share (1)
20.33  20.22  19.61 
Tangible common equity ratio (1)
10.97  % 10.72  % 9.20  %
Common equity tier 1 capital ratio 15.02  14.32  13.54 
Total capital ratio 18.23  17.29  16.33 
______________________________
(1) Reconciliations of the non-GAAP measures are set forth at the end of this press release.
(2) At March 31, 2024, 25% of loans held for investment include a fair value net discount of $41.2 million, or 0.32% of loans held for investment. At December 31, 2023, 24% of loans held for investment include a fair value net discount of $43.3 million, or 0.33% of loans held for investment. At March 31, 2023, 26% of loans held for investment include a fair value net discount of $52.2 million, or 0.37% of loans held for investment.

3


INCOME STATEMENT HIGHLIGHTS

Net Interest Income and Net Interest Margin
 
Net interest income totaled $145.1 million in the first quarter of 2024, a decrease of $1.7 million, or 1.1%, from the fourth quarter of 2023. The decrease in net interest income was primarily attributable to lower average interest-earning asset balances, a higher cost of funds, and one less day of interest, partially offset by higher yields on interest-earning assets, as well as lower average borrowings.

The net interest margin for the first quarter of 2024 increased 11 basis points to 3.39%, from 3.28% in the prior quarter. The increase was primarily due to higher yields on investment securities as a result of a full quarter's benefit from the securities repositioning to higher-yielding available-for-sale (“AFS”) Treasury securities, partially offset by a higher cost of funds.

Net interest income for the first quarter of 2024 decreased $23.5 million, or 13.9%, compared to the first quarter of 2023. The decrease was attributable to a higher cost of funds and lower average interest-earning asset balances, partially offset by lower average interest-bearing liabilities and higher yields on average interest-earning assets, all the result of the higher interest rate environment and the Company's balance sheet management strategies to prioritize capital accumulation.

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCES AND YIELD DATA
(Unaudited)
  Three Months Ended
  March 31, 2024 December 31, 2023 March 31, 2023
(Dollars in thousands) Average Balance Interest Income/Expense Average
 Yield/
 Cost
Average Balance Interest Income/Expense Average
 Yield/
 Cost
Average Balance Interest Income/Expense Average Yield/ Cost
Assets
Cash and cash equivalents $ 1,140,909  $ 13,638  4.81  % $ 1,281,793  $ 15,744  4.87  % $ 1,335,611  $ 13,594  4.13  %
Investment securities 2,948,170  26,818  3.64  3,203,608  24,675  3.08  4,165,681  26,791  2.57 
Loans receivable, net (1) (2)
13,149,038  172,975  5.29  13,257,767  176,773  5.29  14,394,775  180,958  5.10 
Total interest-earning assets $ 17,238,117  $ 213,431  4.98  $ 17,743,168  $ 217,192  4.86  $ 19,896,067  $ 221,343  4.51 
Liabilities
Interest-bearing deposits $ 10,058,808  $ 59,506  2.38  % $ 10,395,116  $ 60,915  2.32  % $ 11,104,624  $ 40,234  1.47  %
Borrowings 850,811  8,798  4.15  942,689  9,488  4.01  1,319,114  12,499  3.83 
Total interest-bearing liabilities $ 10,909,619  $ 68,304  2.52  $ 11,337,805  $ 70,403  2.46  $ 12,423,738  $ 52,733  1.72 
Noninterest-bearing deposits $ 4,996,939  $ 5,141,585  $ 6,219,818 
Net interest income $ 145,127  $ 146,789  $ 168,610 
Net interest margin (3)
    3.39  % 3.28  % 3.44  %
Cost of deposits (4)
1.59  1.56  0.94 
Cost of funds (5)
1.73  1.69  1.15 
Cost of non-maturity deposits (6)
1.06  1.02  0.54 
Ratio of interest-earning assets to interest-bearing liabilities 158.01  156.50  160.15 
_______________________________________
(1) Average balance includes loans held for sale and nonperforming loans and is net of deferred loan origination fees/costs, discounts/premiums, and the basis adjustment of certain loans included in fair value hedging relationships.
(2) Interest income includes net discount accretion of $2.1 million, $2.6 million, and $2.5 million for the three months ended March 31, 2024, December 31, 2023, and March 31, 2023, respectively.
(3) Represents annualized net interest income divided by average interest-earning assets.
(4) Represents annualized interest expense on deposits divided by the sum of average interest-bearing deposits and noninterest-bearing deposits.
(5) Represents annualized total interest expense divided by the sum of average total interest-bearing liabilities and noninterest-bearing deposits.
(6) Reconciliations of the non-GAAP measures are set forth at the end of this press release.
4


Provision for Credit Losses

For the first quarter of 2024, the Company recorded a $3.9 million provision expense, compared to $1.7 million for the fourth quarter of 2023, and $3.0 million for the first quarter of 2023. The provision for credit losses was largely attributable to increases associated with economic forecasts, partially offset by changes to the overall size and composition of the loan portfolio.
Three Months Ended
March 31, December 31, March 31,
(Dollars in thousands) 2024 2023 2023
Provision for credit losses
Provision for loan losses $ 6,288  $ 8,275  $ 3,021 
Provision for unfunded commitments (2,425) (6,577) (189)
Provision for held-to-maturity securities (11) (2) 184 
Total provision for credit losses $ 3,852  $ 1,696  $ 3,016 

Noninterest Income
 
Noninterest income for the first quarter of 2024 was $25.8 million, an increase of $260.0 million from the fourth quarter of 2023. The increase was related to the investment securities portfolio repositioning which resulted in a loss of $254.1 million during the fourth quarter of 2023. Excluding the prior quarter's loss, noninterest income increased $5.9 million, primarily due to a $5.1 million gain on debt extinguishment resulting from an early redemption of a $200.0 million Federal Home Loan Bank of San Francisco (“FHLB”) term advance as well as a $1.3 million increase in trust custodial account fees driven by annual tax fees earned during the current quarter.

Noninterest income for the first quarter of 2024 increased $4.6 million compared to the first quarter of 2023. The increase was primarily due to a $5.1 million gain on debt extinguishment resulting from an early redemption of a $200.0 million FHLB term advance during the current quarter.
Three Months Ended
March 31, December 31, March 31,
(Dollars in thousands) 2024 2023 2023
Noninterest income
Loan servicing income $ 529  $ 359  $ 573 
Service charges on deposit accounts 2,688  2,648  2,629 
Other service fee income 336  322  296 
Debit card interchange fee income 765  844  803 
Earnings on bank owned life insurance 4,159  3,678  3,374 
Net (loss) gain from sales of loans
—  (4) 29 
Net (loss) gain from sales of investment securities —  (254,065) 138 
Trust custodial account fees
10,642  9,388  11,025 
Escrow and exchange fees 696  1,074  1,058 
Other income 5,959  1,562  1,261 
Total noninterest income (loss) $ 25,774  $ (234,194) $ 21,186 

5


Noninterest Expense
 
Noninterest expense totaled $102.6 million for the first quarter of 2024, a decrease of $137,000 compared to the fourth quarter of 2023. The results were impacted by a $523,000 FDIC special assessment in the first quarter of 2024 and a $2.1 million FDIC special assessment during the fourth quarter of 2023. Excluding the special assessments, noninterest expense increased $1.4 million, primarily due to a $2.2 million increase in compensation and benefits related to higher payroll taxes and the annual equity-based compensation awards, as well as a $1.5 million increase in deposit expense due to higher deposit earnings credit rates, partially offset by a $1.1 million decrease in other expense.

Noninterest expense for the first quarter of 2024 increased by $1.3 million compared to the first quarter of 2023. The increase was primarily due to a $4.2 million increase in deposit expense, partially offset by a $1.4 million decrease in legal and professional services and a $935,000 decrease in premises and occupancy.
Three Months Ended
March 31, December 31, March 31,
(Dollars in thousands) 2024 2023 2023
Noninterest expense
Compensation and benefits $ 54,130  $ 51,907  $ 54,293 
Premises and occupancy 10,807  11,183  11,742 
Data processing 7,511  7,409  7,265 
Other real estate owned operations, net 46  103  108 
FDIC insurance premiums 2,629  4,267  2,425 
Legal and professional services 4,143  4,663  5,501 
Marketing expense 1,558  1,728  1,838 
Office expense 1,093  1,367  1,232 
Loan expense 770  437  646 
Deposit expense 12,665  11,152  8,436 
Amortization of intangible assets 2,836  3,022  3,171 
Other expense 4,445  5,532  4,695 
Total noninterest expense $ 102,633  $ 102,770  $ 101,352 


Income Tax

For the first quarter of 2024, income tax expense totaled $17.4 million, resulting in an effective tax rate of 27.0%, compared with income tax benefit of $56.5 million and an effective tax rate of 29.4% for the fourth quarter of 2023, and income tax expense of $22.9 million and an effective tax rate of 26.8% for the first quarter of 2023. The income tax benefit in the prior quarter was primarily attributable to the pretax loss from sales of AFS securities recorded for the fourth quarter of 2023, driven by the Company's balance sheet repositioning.

6


BALANCE SHEET HIGHLIGHTS

Loans

Loans held for investment totaled $13.01 billion at March 31, 2024, a decrease of $276.9 million, or 2.1%, from December 31, 2023, and a decrease of $1.16 billion, or 8.2%, from March 31, 2023. The decrease from December 31, 2023 was primarily due to lower loan production and fundings, as well as a decrease in credit line draws, partially offset by slower loan prepayments and maturities.

During the first quarter of 2024, new loan commitments totaled $45.6 million, and new loan fundings totaled $14.0 million, compared with $128.1 million in loan commitments and $103.7 million in new loan fundings for the fourth quarter of 2023, and $116.8 million in loan commitments and $66.9 million in new loan fundings for the first quarter of 2023. During the first quarter of 2024, new origination activity remained muted given the uncertain economic and interest rate outlook as well as softer borrower demand.
 
At March 31, 2024, the total loan-to-deposit ratio was 85.7%, compared to 88.6% and 82.4% at December 31, 2023 and March 31, 2023, respectively.

The following table presents the primary loan roll-forward activities for total gross loans, including both loans held for investment and loans held for sale, during the quarters indicated:
Three Months Ended
March 31, December 31, March 31,
(Dollars in thousands) 2024 2023 2023
Beginning gross loan balance before basis adjustment $ 13,318,571  $ 13,319,591  $ 14,740,867 
New commitments 45,563  128,102  116,835 
Unfunded new commitments (31,531) (24,429) (49,891)
Net new fundings 14,032  103,673  66,944 
Amortization/maturities/payoffs (358,863) (422,607) (519,986)
Net draws on existing lines of credit 109,860  354,711  (53,436)
Loan sales (32,676) (32,464) (803)
Charge-offs (6,529) (4,138) (3,664)
Transferred to other real estate owned —  (195) (6,886)
Net decrease
(274,176) (1,020) (517,831)
Ending gross loan balance before basis adjustment $ 13,044,395  $ 13,318,571  $ 14,223,036 
Basis adjustment associated with fair value hedge (1)
(32,324) (29,551) (50,005)
Ending gross loan balance $ 13,012,071  $ 13,289,020  $ 14,173,031 
______________________________
(1) Represents the basis adjustment associated with the application of hedge accounting on certain loans.


7


The following table presents the composition of the loans held for investment as of the dates indicated:

March 31, December 31, March 31,
(Dollars in thousands) 2024 2023 2023
Investor loans secured by real estate
Commercial real estate (“CRE”) non-owner-occupied $ 2,309,252  $ 2,421,772  $ 2,590,824 
Multifamily 5,558,966  5,645,310  5,955,239 
Construction and land 486,734  472,544  420,079 
SBA secured by real estate (1)
35,206  36,400  40,669 
Total investor loans secured by real estate 8,390,158  8,576,026  9,006,811 
Business loans secured by real estate (2)
CRE owner-occupied 2,149,362  2,191,334  2,342,175 
Franchise real estate secured 294,938  304,514  371,902 
SBA secured by real estate (3)
48,426  50,741  60,527 
Total business loans secured by real estate 2,492,726  2,546,589  2,774,604 
Commercial loans (4)
Commercial and industrial (“C&I”)
1,774,487  1,790,608  1,967,128 
Franchise non-real estate secured 301,895  319,721  388,722 
SBA non-real estate secured 10,946  10,926  10,437 
Total commercial loans 2,087,328  2,121,255  2,366,287 
Retail loans
Single family residential (5)
72,353  72,752  70,913 
Consumer 1,830  1,949  3,174 
Total retail loans 74,183  74,701  74,087 
Loans held for investment before basis adjustment (6)
13,044,395  13,318,571  14,221,789 
Basis adjustment associated with fair value hedge (7)
(32,324) (29,551) (50,005)
Loans held for investment 13,012,071  13,289,020  14,171,784 
Allowance for credit losses for loans held for investment (192,340) (192,471) (195,388)
Loans held for investment, net $ 12,819,731  $ 13,096,549  $ 13,976,396 
Total unfunded loan commitments $ 1,459,515  $ 1,703,470  $ 2,413,169 
Loans held for sale, at lower of cost or fair value $ —  $ —  $ 1,247 
______________________________
(1) SBA loans that are collateralized by hotel/motel real property.
(2) Loans to businesses that are collateralized by real estate where the operating cash flow of the business is the primary source of repayment.
(3) SBA loans that are collateralized by real property other than hotel/motel real property.
(4) Loans to businesses where the operating cash flow of the business is the primary source of repayment.
(5) Single family residential includes home equity lines of credit, as well as second trust deeds.
(6) Includes net deferred origination costs (fees) of $797,000, $(74,000), and $(745,000), and unaccreted fair value net purchase discounts of $41.2 million, $43.3 million, and $52.2 million as of March 31, 2024, December 31, 2023, and March 31, 2023, respectively.
(7) Represents the basis adjustment associated with the application of hedge accounting on certain loans.

The total end-of-period weighted average interest rate on loans, excluding fees and discounts, at March 31, 2024 was 4.91%, compared to 4.87% at December 31, 2023, and 4.68% at March 31, 2023. The quarter-over-quarter and year-over-year increases reflect higher rates on new originations and the repricing of loans as a result of the increases in benchmark interest rates.

8


The following table presents the composition of loan commitments originated during the quarters indicated:

Three Months Ended
March 31, December 31, March 31,
(Dollars in thousands) 2024 2023 2023
Investor loans secured by real estate
CRE non-owner-occupied $ 850  $ 1,450  $ 1,200 
Multifamily 480  94,462  4,464 
Total investor loans secured by real estate 1,330  95,912  5,664 
Business loans secured by real estate (1)
CRE owner-occupied 6,745  3,870  6,562 
Franchise real estate secured —  —  3,217 
SBA secured by real estate (2)
—  —  497 
Total business loans secured by real estate 6,745  3,870  10,276 
Commercial loans (3)
Commercial and industrial 32,477  24,766  93,150 
Franchise non-real estate secured —  —  1,666 
SBA non-real estate secured —  —  720 
Total commercial loans 32,477  24,766  95,536 
Retail loans
Single family residential (4)
4,936  3,554  5,359 
Consumer 75  —  — 
Total retail loans 5,011  3,554  5,359 
Total loan commitments $ 45,563  $ 128,102  $ 116,835 
______________________________
(1) Loans to businesses that are collateralized by real estate where the operating cash flow of the business is the primary source of repayment.
(2) SBA loans that are collateralized by real property other than hotel/motel real property.
(3) Loans to businesses where the operating cash flow of the business is the primary source of repayment.
(4) Single family residential includes home equity lines of credit, as well as second trust deeds.

The weighted average interest rate on new loan commitments increased to 8.62% in the first quarter of 2024, compared to 6.34% in the fourth quarter of 2023, and 7.43% in the first quarter of 2023.

Asset Quality and Allowance for Credit Losses
 
At March 31, 2024, our allowance for credit losses (“ACL”) on loans held for investment was $192.3 million, a decrease of $131,000 from December 31, 2023, and a decrease of $3.0 million from March 31, 2023. The decrease in the ACL from December 31, 2023 and March 31, 2023 reflects the relative changes in size and composition in our loans held for investment, partially offset by changes in economic forecasts.

During the first quarter of 2024, the Company incurred $6.4 million of net charge-offs, primarily related to the sale of special mention and substandard CRE and franchise loans during the quarter, compared to $3.9 million during the fourth quarter of 2023, and $3.3 million during the first quarter of 2023.

The following table provides the allocation of the ACL for loans held for investment as well as the activity in the ACL attributed to various segments in the loan portfolio as of and for the period indicated:

9


Three Months Ended March 31, 2024
(Dollars in thousands)  Beginning ACL Balance  Charge-offs  Recoveries Provision for Credit Losses  Ending
ACL Balance
Investor loans secured by real estate
CRE non-owner-occupied $ 31,030  $ (927) $ —  $ 678  $ 30,781 
Multifamily 56,312  —  2,094  58,411 
Construction and land 9,314  —  —  (1,143) 8,171 
SBA secured by real estate (1)
2,182  (253) —  255  2,184 
Business loans secured by real estate (2)
CRE owner-occupied 28,787  (4,452) 63  4,362  28,760 
Franchise real estate secured 7,499  (212) —  (29) 7,258 
SBA secured by real estate (3)
4,427  —  (140) 4,288 
Commercial loans (4)
Commercial and industrial 36,692  (585) 39  961  37,107 
Franchise non-real estate secured 15,131  (100) —  (711) 14,320 
SBA non-real estate secured 458  —  35  495 
Retail loans
Single family residential (5)
505  —  —  (63) 442 
Consumer loans 134  —  —  (11) 123 
Totals $ 192,471  $ (6,529) $ 110  $ 6,288  $ 192,340 
______________________________
(1) SBA loans that are collateralized by hotel/motel real property.
(2) Loans to businesses that are collateralized by real estate where the operating cash flow of the business is the primary source of repayment.
(3) SBA loans that are collateralized by real property other than hotel/motel real property.
(4) Loans to businesses where the operating cash flow of the business is the primary source of repayment.
(5) Single family residential includes home equity lines of credit, as well as second trust deeds.

The ratio of ACL to loans held for investment at March 31, 2024 increased to 1.48%, compared to 1.45% at December 31, 2023, and 1.38% at March 31, 2023. The fair value net discount on loans acquired through acquisitions was $41.2 million, or 0.32% of total loans held for investment, as of March 31, 2024, compared to $43.3 million, or 0.33% of total loans held for investment, as of December 31, 2023, and $52.2 million, or 0.37% of total loans held for investment, as of March 31, 2023.

Nonperforming assets totaled $64.1 million, or 0.34% of total assets, at March 31, 2024, compared with $25.1 million, or 0.13% of total assets, at December 31, 2023, and $30.4 million, or 0.14% of total assets, at March 31, 2023. The increase in nonperforming assets at March 31, 2024, was primarily the result of loans to one borrower relationship totaling $37.6 million, all of which were current as of March 31, 2024. Loan delinquencies were $12.2 million, or 0.09% of loans held for investment, at March 31, 2024, compared to $10.1 million, or 0.08% of loans held for investment, at December 31, 2023, and $20.8 million, or 0.15% of loans held for investment, at March 31, 2023.

Classified loans totaled $204.7 million, or 1.57% of loans held for investment, at March 31, 2024, compared with $142.0 million, or 1.07% of loans held for investment, at December 31, 2023, and $161.1 million, or 1.14% of loans held for investment, at March 31, 2023. The increase in classified loans included the $37.6 million in loans related to one borrower relationship that were placed on nonaccrual during the first quarter of 2024 and remained current as of March 31, 2024.


10


The following table presents the asset quality metrics of the loan portfolio as of the dates indicated.

  March 31, December 31, March 31,
(Dollars in thousands) 2024 2023 2023
Asset quality
Nonperforming loans $ 63,806  $ 24,817  $ 24,872 
Other real estate owned 248  248  5,499 
Nonperforming assets $ 64,054  $ 25,065  $ 30,371 
Total classified assets (1)
$ 204,937  $ 142,210  $ 166,576 
Allowance for credit losses 192,340  192,471  195,388 
Allowance for credit losses as a percent of total nonperforming loans 301  % 776  % 786  %
Nonperforming loans as a percent of loans held for investment 0.49  0.19  0.18 
Nonperforming assets as a percent of total assets 0.34  0.13  0.14 
Classified loans to total loans held for investment 1.57  1.07  1.14 
Classified assets to total assets 1.09  0.75  0.78 
Net loan charge-offs for the quarter ended $ 6,419  $ 3,902  $ 3,284 
Net loan charge-offs for the quarter to average total loans 0.05  % 0.03  % 0.02  %
Allowance for credit losses to loans held for investment (2)
1.48  1.45  1.38 
Delinquent loans (3)
   
30 - 59 days $ 1,983  $ 2,484  $ 761 
60 - 89 days 974  1,294  1,198 
90+ days 9,221  6,276  18,884 
Total delinquency $ 12,178  $ 10,054  $ 20,843 
Delinquency as a percentage of loans held for investment 0.09  % 0.08  % 0.15  %
______________________________
(1) Includes substandard and doubtful loans, and other real estate owned.
(2) At March 31, 2024, 25% of loans held for investment include a fair value net discount of $41.2 million, or 0.32% of loans held for investment. At December 31, 2023, 24% of loans held for investment include a fair value net discount of $43.3 million, or 0.33% of loans held for investment. At March 31, 2023, 26% of loans held for investment include a fair value net discount of $52.2 million, or 0.37% of loans held for investment.
(3) Nonaccrual loans are included in this aging analysis based on the loan's past due status.

Investment Securities

At March 31, 2024, AFS and held-to-maturity (“HTM”) investment securities were $1.15 billion and $1.72 billion, respectively, compared to $1.14 billion and $1.73 billion, respectively, at December 31, 2023, and $2.11 billion and $1.75 billion, respectively, at March 31, 2023.

In total, investment securities were $2.87 billion at March 31, 2024, an increase of $4.9 million from December 31, 2023, and a decrease of $987.4 million from March 31, 2023. The increase in the first quarter of 2024 compared to the prior quarter was primarily the result of $170.2 million in purchases and a decrease of $1.9 million in AFS investment securities mark-to-market unrealized loss, partially offset by $167.3 million in principal payments, amortization and accretion, and redemptions.

The decrease in investment securities from March 31, 2023 was primarily the result of $1.52 billion in sales of AFS investment securities and $410.9 million in principal payments, discounts from the AFS securities transferred to HTM, partially offset by $722.7 million in purchases of AFS and HTM investment securities and a decrease of $219.0 million in AFS securities mark-to-market unrealized loss.

11


Deposits

At March 31, 2024, total deposits were $15.19 billion, an increase of $192.2 million, or 1.3%, from December 31, 2023, and a decrease of $2.02 billion, or 11.7%, from March 31, 2023. The increase from the prior quarter was largely driven by increases of $169.2 million in money market and savings, $110.3 million in retail certificates of deposit, and $64.8 million in noninterest-bearing checking, partially offset by reductions of $114.0 million in interest-bearing checking and $38.1 million in brokered certificates of deposit. The decrease from March 31, 2023 was attributable to the decreases of $1.21 billion in noninterest-bearing checking and $1.17 billion in brokered certificates of deposit.

At March 31, 2024, non-maturity deposits(1) totaled $12.82 billion, or 84.4% of total deposits, an increase of $120.0 million, or 0.9%, from December 31, 2023, and a decrease of $1.39 billion, or 9.8%, from March 31, 2023. The increase from prior quarter was largely driven by seasonal deposit growth within our HOA business. The decrease from the first quarter of 2023 was attributable to the continued effect of clients prepaying or paying down loans and redeploying funds into higher yielding alternatives.

At March 31, 2024, maturity deposits totaled $2.37 billion, an increase of $72.2 million, or 3.1%, from December 31, 2023, and a decrease of $631.1 million, or 21.1%, from March 31, 2023. The increase in the first quarter of 2024 compared to the prior quarter was primarily driven by an increase of $110.3 million in retail certificates of deposit, partially offset by the reduction of $38.1 million in brokered certificates of deposit. The decrease from March 31, 2023 was primarily driven by decreases in brokered certificates of deposit.

The weighted average cost of total deposits for the first quarter of 2024 was 1.59%, compared to 1.56% for the fourth quarter of 2023, and 0.94% for the first quarter of 2023. The increases in the weighted average cost of deposits for the first quarter of 2024, compared to the fourth quarter of 2023 and the first quarter of 2023, were principally driven by higher pricing across deposit categories. The weighted average cost of non-maturity deposits(1) for the first quarter of 2024 was 1.06%, compared to 1.02% for the fourth quarter of 2023, and 0.54% for the first quarter of 2023.

At March 31, 2024, the end-of-period weighted average rate of total deposits was 1.66%, compared to 1.55% at December 31, 2023, and 1.15% at March 31, 2023. At March 31, 2024, the end-of-period weighted average rate of non-maturity deposits was 1.12%, compared to 1.04% at December 31, 2023, and 0.61% at March 31, 2023.

At March 31, 2024, the Company’s FDIC-insured deposits as a percentage of total deposits was 60%. Insured and collateralized deposits comprised 66% of total deposits at March 31, 2024, which was the same level at December 31, 2023.














______________________________
(1) Reconciliations of the non-GAAP measures are set forth at the end of this press release.
12


The following table presents the composition of deposits as of the dates indicated.

  March 31, December 31, March 31,
(Dollars in thousands) 2024 2023 2023
Deposit accounts
Noninterest-bearing checking $ 4,997,636  $ 4,932,817  $ 6,209,104 
Interest-bearing:
Checking 2,785,626  2,899,621  2,871,812 
Money market/savings 5,037,636  4,868,442  5,128,857 
Total non-maturity deposits (1)
12,820,898  12,700,880  14,209,773 
Retail certificates of deposit 1,794,813  1,684,560  1,257,146 
Wholesale/brokered certificates of deposit 572,117  610,186  1,740,891 
Total maturity deposits 2,366,930  2,294,746  2,998,037 
Total deposits $ 15,187,828  $ 14,995,626  $ 17,207,810 
Cost of deposits 1.59  % 1.56  % 0.94  %
Cost of non-maturity deposits (1)
1.06  1.02  0.54 
Noninterest-bearing deposits as a percent of total deposits 32.9  32.9  36.1 
Non-maturity deposits (1) as a percent of total deposits
84.4  84.7  82.6 
______________________________
(1) Reconciliations of the non-GAAP measures are set forth at the end of this press release.


Borrowings

At March 31, 2024, total borrowings amounted to $532.0 million, a decrease of $399.8 million from December 31, 2023, and a decrease of $599.4 million from March 31, 2023. Total borrowings at March 31, 2024 were comprised of $200.0 million of FHLB term advances and $332.0 million of subordinated debt. The decrease in borrowings at March 31, 2024 as compared to December 31, 2023 was due to a decrease of $400.0 million in FHLB term advances. The decrease in borrowings at March 31, 2024 as compared to March 31, 2023 was due to a decrease of $600.0 million in FHLB term advances.

As of March 31, 2024, our unused borrowing capacity was $8.53 billion, which consists of available lines of credit with FHLB and other correspondent banks as well as access through the Federal Reserve Bank's discount window, which was not utilized during the first quarter of 2024.

Capital Ratios

At March 31, 2024, our common stockholders' equity was $2.90 billion, or 15.43% of total assets, compared with $2.88 billion, or 15.15%, at December 31, 2023, and $2.83 billion, or 13.25%, at March 31, 2023, with a book value per share of $30.09, compared with $30.07 at December 31, 2023, and $29.58 at March 31, 2023. At March 31, 2024, the ratio of tangible common equity to tangible assets(1) was 10.97%, compared with 10.72% at December 31, 2023, and 9.20% at March 31, 2023, and tangible book value per share(1) was $20.33, compared with $20.22 at December 31, 2023, and $19.61 at March 31, 2023.





______________________________
(1) Reconciliations of the non-GAAP measures are set forth at the end of this press release.
13


The Company implemented the current expected credit losses (“CECL”) model on January 1, 2020 and elected to phase in the full effect of CECL on regulatory capital over the five-year transition period. In the first quarter of 2022, the Company began phasing into regulatory capital the cumulative adjustments at the end of the second year of the transition period at 25% per year. At March 31, 2024, the Company and Bank were in compliance with the capital conservation buffer requirement and exceeded the minimum Common Equity Tier 1, Tier 1, and total capital ratios, inclusive of the fully phased-in capital conservation buffer of 7.0%, 8.5%, and 10.5%, respectively, and the Bank qualified as “well capitalized” for purposes of the federal bank regulatory prompt corrective action regulations.

March 31, December 31, March 31,
Capital ratios 2024 2023 2023
Pacific Premier Bancorp, Inc. Consolidated      
Tier 1 leverage ratio 11.48  % 11.03  % 10.41  %
Common equity tier 1 capital ratio 15.02  14.32  13.54 
Tier 1 capital ratio 15.02  14.32  13.54 
Total capital ratio 18.23  17.29  16.33 
Tangible common equity ratio (1)
10.97  10.72  9.20 
Pacific Premier Bank
Tier 1 leverage ratio 12.97  % 12.43  % 11.93  %
Common equity tier 1 capital ratio 16.96  16.13  15.52 
Tier 1 capital ratio 16.96  16.13  15.52 
Total capital ratio 18.21  17.23  16.55 
Share data      
Book value per share $ 30.09  $ 30.07  $ 29.58 
Tangible book value per share (1)
20.33  20.22  19.61 
Common equity dividends declared per share 0.33  0.33  0.33 
Closing stock price (2)
24.00  29.11  24.02 
Shares issued and outstanding 96,459,966  95,860,092  95,714,777 
Market capitalization (2)(3)
$ 2,315,039  $ 2,790,487  $ 2,299,069 
______________________________
(1) Reconciliations of the non-GAAP measures are set forth at the end of this press release.
(2) As of the last trading day prior to period end.
(3) Dollars in thousands.

Dividend and Stock Repurchase Program

On April 22, 2024, the Company's Board of Directors declared a $0.33 per share dividend, payable on May 13, 2024 to stockholders of record as of May 6, 2024. In January 2021, the Company’s Board of Directors approved a stock repurchase program, which authorized the repurchase of up to 4,725,000 shares of its common stock. During the first quarter of 2024, the Company did not repurchase any shares of common stock.



14


Conference Call and Webcast

The Company will host a conference call at 9:00 a.m. PT / 12:00 p.m. ET on April 24, 2024 to discuss its financial results. Analysts and investors may participate in the question-and-answer session. A live webcast will be available on the Webcasts page of the Company's investor relations website. An archived version of the webcast will be available in the same location shortly after the live call has ended. The conference call can be accessed by telephone at (866) 290-5977. Participants should ask to be joined to the Pacific Premier Bancorp, Inc. call. Additionally, a telephone replay will be made available through May 1, 2024, at (877) 344-7529, replay code 4066481.

About Pacific Premier Bancorp, Inc.

Pacific Premier Bancorp, Inc. (Nasdaq: PPBI) is the parent company of Pacific Premier Bank, a California-based commercial bank focused on serving small, middle-market, and corporate businesses throughout the western United States in major metropolitan markets in California, Washington, Oregon, Arizona, and Nevada. Founded in 1983, Pacific Premier Bank has grown to become one of the largest banks headquartered in the western region of the United States, with approximately $19 billion in total assets. Pacific Premier Bank provides banking products and services, including deposit accounts, digital banking, and treasury management services, to businesses, professionals, entrepreneurs, real estate investors, and nonprofit organizations. Pacific Premier Bank also offers a wide array of loan products, such as commercial business loans, lines of credit, SBA loans, commercial real estate loans, agribusiness loans, franchise lending, home equity lines of credit, and construction loans. Pacific Premier Bank offers commercial escrow services and facilitates 1031 Exchange transactions through its Commerce Escrow division. Pacific Premier Bank offers clients IRA custodial services through its Pacific Premier Trust division, which has approximately $17 billion of assets under custody and over 33,000 client accounts comprised of self-directed investors, financial institutions, capital syndicators, and financial advisors. Additionally, Pacific Premier Bank provides nationwide customized banking solutions to Homeowners’ Associations and Property Management companies. Pacific Premier Bank is an Equal Housing Lender and Member FDIC. For additional information about Pacific Premier Bancorp, Inc. and Pacific Premier Bank, visit our website: www.ppbi.com.

FORWARD-LOOKING STATEMENTS
 
The statements contained herein that are not historical facts are forward-looking statements based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company including, without limitation, plans, strategies and goals, and statements about the Company’s expectations regarding revenue and asset growth, financial performance and profitability, loan and deposit growth, yields and returns, loan diversification and credit management, stockholder value creation, tax rates, liquidity, and the impact of acquisitions we have made or may make.

Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the Company. There can be no assurance that future developments affecting the Company will be the same as those anticipated by management. The Company cautions readers that a number of important factors could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements. These risks and uncertainties include, but are not limited to, the following: the strength of the United States economy in general and the strength of the local economies in which we conduct operations; adverse developments in the banking industry highlighted by high-profile bank failures and the potential impact of such developments on customer confidence, liquidity, and regulatory responses to these developments; the effects of, and changes in, trade, monetary, and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; interest rate, liquidity, economic, market, credit, operational, and inflation risks associated with our business, including the speed and predictability of changes in these risks; our ability to attract and retain deposits and access to other sources of liquidity, particularly in a rising or high interest rate environment, and the quality and composition of our deposits; business and economic conditions generally and in the financial services industry, nationally and within our current and future geographic markets, including the tight labor market, ineffective management of the U.S.
15


Federal budget or debt, or turbulence or uncertainty in domestic or foreign financial markets; the effect of acquisitions we have made or may make, including, without limitation, the failure to achieve the expected revenue growth and/or expense savings from such acquisitions, and/or the failure to effectively integrate an acquisition target into our operations; the timely development of competitive new products and services and the acceptance of these products and services by new and existing customers; possible impairment charges to goodwill, including any impairment that may result from increased volatility in our stock price; the impact of changes in financial services policies, laws, and regulations, including those concerning taxes, banking, securities, and insurance, and the application thereof by regulatory bodies; compliance risks, including the costs of monitoring, testing, and maintaining compliance with complex laws and regulations; the effectiveness of our risk management framework and quantitative models; the effect of changes in accounting policies and practices or accounting standards, as may be adopted from time-to-time by bank regulatory agencies, the U.S. Securities and Exchange Commission (“SEC”), the Public Company Accounting Oversight Board, the Financial Accounting Standards Board or other accounting standards setters; possible credit-related impairments of securities held by us; changes in the level of our nonperforming assets and charge-offs; the impact of governmental efforts to restructure the U.S. financial regulatory system; the impact of recent or future changes in the FDIC insurance assessment rate or the rules and regulations related to the calculation of the FDIC insurance assessment amount, including any special assessments; changes in consumer spending, borrowing, and savings habits; the effects of concentrations in our loan portfolio, including commercial real estate and the risks of geographic and industry concentrations; the possibility that we may reduce or discontinue the payments of dividends on our common stock; the possibility that we may discontinue, reduce or otherwise limit the level of repurchases of our common stock we may make from time to time pursuant to our stock repurchase program; changes in the financial performance and/or condition of our borrowers; changes in the competitive environment among financial and bank holding companies and other financial service providers; geopolitical conditions, including acts or threats of terrorism, actions taken by the United States or other governments in response to acts or threats of terrorism, and/or military conflicts, including the war between Russia and Ukraine, Israel and Hamas and overall tension in the Middle East, and trade tensions, all of which could impact business and economic conditions in the United States and abroad; public health crises and pandemics and their effects on the economic and business environments in which we operate, including on our credit quality and business operations, as well as the impact on general economic and financial market conditions; cybersecurity threats and the cost of defending against them; climate change, including the enhanced regulatory, compliance, credit, and reputational risks and costs; natural disasters, earthquakes, fires, and severe weather; unanticipated regulatory or legal proceedings; and our ability to manage the risks involved in the foregoing. Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Company's 2023 Annual Report on Form 10-K filed with the SEC and available at the SEC’s Internet site (http://www.sec.gov).

The Company undertakes no obligation to revise or publicly release any revision or update to these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made.

Contacts:
 
Pacific Premier Bancorp, Inc.
 
Steven R. Gardner
Chairman, Chief Executive Officer, and President
(949) 864-8000

Ronald J. Nicolas, Jr.
Senior Executive Vice President and Chief Financial Officer
(949) 864-8000

Matthew J. Lazzaro
Senior Vice President and Director of Investor Relations
(949) 243-1082
16


PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
  March 31, December 31, September 30, June 30, March 31,
(Dollars in thousands) 2024 2023 2023 2023 2023
ASSETS
Cash and cash equivalents $ 1,028,818  $ 936,473  $ 1,400,276  $ 1,463,677  $ 1,424,896 
Interest-bearing time deposits with financial institutions 995  995  1,242  1,487  1,734 
Investment securities held-to-maturity, at amortized cost, net of allowance for credit losses 1,720,481  1,729,541  1,737,866  1,737,604  1,749,030 
Investment securities available-for-sale, at fair value 1,154,021  1,140,071  1,914,599  2,011,791  2,112,852 
FHLB, FRB, and other stock 97,063  99,225  105,505  105,369  105,479 
Loans held for sale, at lower of amortized cost or fair value —  —  641  2,184  1,247 
Loans held for investment 13,012,071  13,289,020  13,270,120  13,610,282  14,171,784 
Allowance for credit losses (192,340) (192,471) (188,098) (192,333) (195,388)
Loans held for investment, net 12,819,731  13,096,549  13,082,022  13,417,949  13,976,396 
Accrued interest receivable 67,642  68,516  68,131  70,093  69,660 
Other real estate owned 248  248  450  270  5,499 
Premises and equipment, net 54,789  56,676  59,396  61,527  63,450 
Deferred income taxes, net 111,390  113,580  192,208  184,857  177,778 
Bank owned life insurance 474,404  471,178  468,191  465,288  462,732 
Intangible assets 40,449  43,285  46,307  49,362  52,417 
Goodwill 901,312  901,312  901,312  901,312  901,312 
Other assets 341,838  368,996  297,574  275,113  257,082 
Total assets $ 18,813,181  $ 19,026,645  $ 20,275,720  $ 20,747,883  $ 21,361,564 
LIABILITIES    
Deposit accounts:    
Noninterest-bearing checking $ 4,997,636  $ 4,932,817  $ 5,782,305  $ 5,895,975  $ 6,209,104 
Interest-bearing:
Checking 2,785,626  2,899,621  2,598,449  2,759,855  2,871,812 
Money market/savings 5,037,636  4,868,442  4,873,582  4,801,288  5,128,857 
Retail certificates of deposit 1,794,813  1,684,560  1,525,919  1,366,071  1,257,146 
Wholesale/brokered certificates of deposit 572,117  610,186  1,227,192  1,716,686  1,740,891 
Total interest-bearing 10,190,192  10,062,809  10,225,142  10,643,900  10,998,706 
Total deposits 15,187,828  14,995,626  16,007,447  16,539,875  17,207,810 
FHLB advances and other borrowings 200,000  600,000  800,000  800,000  800,000 
Subordinated debentures 332,001  331,842  331,682  331,523  331,364 
Accrued expenses and other liabilities 190,551  216,596  281,057  227,351  191,229 
Total liabilities 15,910,380  16,144,064  17,420,186  17,898,749  18,530,403 
STOCKHOLDERS’ EQUITY          
Common stock 941  938  937  937  937 
Additional paid-in capital 2,378,171  2,377,131  2,371,941  2,366,639  2,361,830 
Retained earnings 619,405  604,137  771,285  757,025  731,123 
Accumulated other comprehensive loss (95,716) (99,625) (288,629) (275,467) (262,729)
Total stockholders' equity 2,902,801  2,882,581  2,855,534  2,849,134  2,831,161 
Total liabilities and stockholders' equity $ 18,813,181  $ 19,026,645  $ 20,275,720  $ 20,747,883  $ 21,361,564 








17


PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
  Three Months Ended
  March 31, December 31, March 31,
(Dollars in thousands, except per share data) 2024 2023 2023
INTEREST INCOME      
Loans $ 172,975  $ 176,773  $ 180,958 
Investment securities and other interest-earning assets 40,456  40,419  40,385 
Total interest income 213,431  217,192  221,343 
INTEREST EXPENSE
Deposits 59,506  60,915  40,234 
FHLB advances and other borrowings 4,237  4,927  7,938 
Subordinated debentures 4,561  4,561  4,561 
Total interest expense 68,304  70,403  52,733 
Net interest income before provision for credit losses 145,127  146,789  168,610 
Provision for credit losses 3,852  1,696  3,016 
Net interest income after provision for credit losses 141,275  145,093  165,594 
NONINTEREST INCOME
Loan servicing income 529  359  573 
Service charges on deposit accounts 2,688  2,648  2,629 
Other service fee income 336  322  296 
Debit card interchange fee income 765  844  803 
Earnings on bank owned life insurance 4,159  3,678  3,374 
Net (loss) gain from sales of loans
—  (4) 29 
Net (loss) gain from sales of investment securities —  (254,065) 138 
Trust custodial account fees
10,642  9,388  11,025 
Escrow and exchange fees 696  1,074  1,058 
Other income 5,959  1,562  1,261 
Total noninterest income (loss) 25,774  (234,194) 21,186 
NONINTEREST EXPENSE
Compensation and benefits 54,130  51,907  54,293 
Premises and occupancy 10,807  11,183  11,742 
Data processing 7,511  7,409  7,265 
Other real estate owned operations, net 46  103  108 
FDIC insurance premiums 2,629  4,267  2,425 
Legal and professional services 4,143  4,663  5,501 
Marketing expense 1,558  1,728  1,838 
Office expense 1,093  1,367  1,232 
Loan expense 770  437  646 
Deposit expense 12,665  11,152  8,436 
Amortization of intangible assets 2,836  3,022  3,171 
Other expense 4,445  5,532  4,695 
Total noninterest expense 102,633  102,770  101,352 
Net income (loss) before income taxes 64,416  (191,871) 85,428 
Income tax expense (benefit) 17,391  (56,495) 22,866 
Net income (loss) $ 47,025  $ (135,376) $ 62,562 
EARNINGS (LOSS) PER SHARE
Basic $ 0.49  $ (1.44) $ 0.66 
Diluted $ 0.49  $ (1.44) $ 0.66 
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 94,350,259  94,233,813  93,857,812 
Diluted 94,477,355  94,334,878  94,182,522 
18


SELECTED FINANCIAL DATA

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCES AND YIELD DATA
(Unaudited)
 
  Three Months Ended
  March 31, 2024 December 31, 2023 March 31, 2023
(Dollars in thousands) Average Balance Interest Income/Expense Average Yield/Cost Average Balance Interest Income/Expense Average Yield/Cost Average Balance Interest Income/Expense Average Yield/Cost
Assets
Interest-earning assets:                  
Cash and cash equivalents $ 1,140,909  $ 13,638  4.81  % $ 1,281,793  $ 15,744  4.87  % $ 1,335,611  $ 13,594  4.13  %
Investment securities 2,948,170  26,818  3.64  3,203,608  24,675  3.08  4,165,681  26,791  2.57 
Loans receivable, net (1)(2)
13,149,038  172,975  5.29  13,257,767  176,773  5.29  14,394,775  180,958  5.10 
Total interest-earning assets 17,238,117  213,431  4.98  17,743,168  217,192  4.86  19,896,067  221,343  4.51 
Noninterest-earning assets 1,796,279  1,881,777  1,788,806 
Total assets $ 19,034,396  $ 19,624,945  $ 21,684,873 
Liabilities and equity
Interest-bearing deposits:
Interest checking $ 2,838,332  $ 9,903  1.40  % $ 3,037,642  $ 11,170  1.46  % $ 3,008,712  $ 5,842  0.79  %
Money market 4,636,141  23,632  2.05  4,525,403  22,038  1.93  4,992,084  13,053  1.06 
Savings 287,735  227  0.32  308,968  190  0.24  453,079  508  0.45 
Retail certificates of deposit 1,727,728  19,075  4.44  1,604,507  16,758  4.14  1,206,966  7,775  2.61 
Wholesale/brokered certificates of deposit 568,872  6,669  4.72  918,596  10,759  4.65  1,443,783  13,056  3.67 
Total interest-bearing deposits 10,058,808  59,506  2.38  10,395,116  60,915  2.32  11,104,624  40,234  1.47 
FHLB advances and other borrowings 518,879  4,237  3.28  610,913  4,927  3.20  987,817  7,938  3.26 
Subordinated debentures 331,932  4,561  5.50  331,776  4,561  5.50  331,297  4,561  5.51 
Total borrowings 850,811  8,798  4.15  942,689  9,488  4.01  1,319,114  12,499  3.83 
Total interest-bearing liabilities 10,909,619  68,304  2.52  11,337,805  70,403  2.46  12,423,738  52,733  1.72 
Noninterest-bearing deposits 4,996,939  5,141,585  6,219,818 
Other liabilities 231,889  296,604  218,925 
Total liabilities 16,138,447  16,775,994  18,862,481 
Stockholders' equity 2,895,949  2,848,951  2,822,392 
Total liabilities and equity $ 19,034,396  $ 19,624,945  $ 21,684,873 
Net interest income $ 145,127  $ 146,789  $ 168,610 
Net interest margin (3)
3.39  % 3.28  % 3.44  %
Cost of deposits (4)
1.59  1.56  0.94 
Cost of funds (5)
1.73  1.69  1.15 
Cost of non-maturity deposits (6)
1.06  1.02  0.54 
Ratio of interest-earning assets to interest-bearing liabilities 158.01  156.50  160.15 
______________________________
(1) Average balance includes loans held for sale and nonperforming loans and is net of deferred loan origination fees/costs, discounts/premiums, and the basis adjustment of certain loans included in fair value hedging relationships.
(2) Interest income includes net discount accretion of $2.1 million, $2.6 million, and $2.5 million for the three months ended March 31, 2024, December 31, 2023, and March 31, 2023, respectively.
(3) Represents annualized net interest income divided by average interest-earning assets.
(4) Represents annualized interest expense on deposits divided by the sum of average interest-bearing deposits and noninterest-bearing deposits.
(5) Represents annualized total interest expense divided by the sum of average total interest-bearing liabilities and noninterest-bearing deposits.
(6) Reconciliations of the non-GAAP measures are set forth at the end of this press release.
19


PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
LOAN PORTFOLIO COMPOSITION
(Unaudited)
March 31, December 31, September 30, June 30, March 31,
(Dollars in thousands) 2024 2023 2023 2023 2023
Investor loans secured by real estate
CRE non-owner-occupied $ 2,309,252  $ 2,421,772  $ 2,514,056  $ 2,571,246  $ 2,590,824 
Multifamily 5,558,966  5,645,310  5,719,210  5,788,030  5,955,239 
Construction and land 486,734  472,544  444,576  428,287  420,079 
SBA secured by real estate (1)
35,206  36,400  37,754  38,876  40,669 
Total investor loans secured by real estate 8,390,158  8,576,026  8,715,596  8,826,439  9,006,811 
Business loans secured by real estate (2)
CRE owner-occupied 2,149,362  2,191,334  2,228,802  2,281,721  2,342,175 
Franchise real estate secured 294,938  304,514  313,451  318,539  371,902 
SBA secured by real estate (3)
48,426  50,741  53,668  57,084  60,527 
Total business loans secured by real estate 2,492,726  2,546,589  2,595,921  2,657,344  2,774,604 
Commercial loans (4)
Commercial and industrial 1,774,487  1,790,608  1,588,771  1,744,763  1,967,128 
Franchise non-real estate secured 301,895  319,721  335,053  351,944  388,722 
SBA non-real estate secured 10,946  10,926  10,667  9,688  10,437 
Total commercial loans 2,087,328  2,121,255  1,934,491  2,106,395  2,366,287 
Retail loans
Single family residential (5)
72,353  72,752  70,984  70,993  70,913 
Consumer 1,830  1,949  1,958  2,241  3,174 
Total retail loans 74,183  74,701  72,942  73,234  74,087 
Loans held for investment before basis adjustment (6)
13,044,395  13,318,571  13,318,950  13,663,412  14,221,789 
Basis adjustment associated with fair value hedge (7)
(32,324) (29,551) (48,830) (53,130) (50,005)
Loans held for investment 13,012,071  13,289,020  13,270,120  13,610,282  14,171,784 
Allowance for credit losses for loans held for investment (192,340) (192,471) (188,098) (192,333) (195,388)
Loans held for investment, net $ 12,819,731  $ 13,096,549  $ 13,082,022  $ 13,417,949  $ 13,976,396 
Loans held for sale, at lower of cost or fair value $ —  $ —  $ 641  $ 2,184  $ 1,247 
______________________________
(1) SBA loans that are collateralized by hotel/motel real property.
(2) Loans to businesses that are collateralized by real estate where the operating cash flow of the business is the primary source of repayment.
(3) SBA loans that are collateralized by real property other than hotel/motel real property.
(4) Loans to businesses where the operating cash flow of the business is the primary source of repayment.
(5) Single family residential includes home equity lines of credit, as well as second trust deeds.
(6) Includes net deferred origination costs (fees) of $797,000, $(74,000), $451,000, $142,000, and $(745,000), and unaccreted fair value net purchase discounts of $41.2 million, $43.3 million, $46.2 million, $48.4 million, and $52.2 million as of March 31, 2024, December 31, 2023, September 30, 2023, June 30, 2023, and March 31, 2023, respectively.
(7) Represents the basis adjustment associated with the application of hedge accounting on certain loans.




20


PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
ASSET QUALITY INFORMATION
(Unaudited)
  March 31, December 31, September 30, June 30, March 31,
(Dollars in thousands) 2024 2023 2023 2023 2023
Asset quality
Nonperforming loans $ 63,806  $ 24,817  $ 25,458  $ 17,151  $ 24,872 
Other real estate owned 248  248  450  270  5,499 
Nonperforming assets $ 64,054  $ 25,065  $ 25,908  $ 17,421  $ 30,371 
Total classified assets (1)
$ 204,937  $ 142,210  $ 149,708  $ 120,216  $ 166,576 
Allowance for credit losses 192,340  192,471  188,098  192,333  195,388 
Allowance for credit losses as a percent of total nonperforming loans 301  % 776  % 739  % 1,121  % 786  %
Nonperforming loans as a percent of loans held for investment 0.49  0.19  0.19  0.13  0.18 
Nonperforming assets as a percent of total assets 0.34  0.13  0.13  0.08  0.14 
Classified loans to total loans held for investment 1.57  1.07  1.12  0.88  1.14 
Classified assets to total assets 1.09  0.75  0.74  0.58  0.78 
Net loan charge-offs for the quarter ended $ 6,419  $ 3,902  $ 6,752  $ 3,665  $ 3,284 
Net loan charge-offs for the quarter to average total loans 0.05  % 0.03  % 0.05  % 0.03  % 0.02  %
Allowance for credit losses to loans held for investment (2)
1.48  1.45  1.42  1.41  1.38 
Delinquent loans (3)
     
30 - 59 days $ 1,983  $ 2,484  $ 2,967  $ 649  $ 761 
60 - 89 days 974  1,294  475  31  1,198 
90+ days 9,221  6,276  7,484  30,271  18,884 
Total delinquency $ 12,178  $ 10,054  $ 10,926  $ 30,951  $ 20,843 
Delinquency as a percent of loans held for investment 0.09  % 0.08  % 0.08  % 0.23  % 0.15  %
______________________________
(1) Includes substandard and doubtful loans, and other real estate owned.
(2) At March 31, 2024, 25% of loans held for investment include a fair value net discount of $41.2 million, or 0.32% of loans held for investment. At December 31, 2023, 24% of loans held for investment include a fair value net discount of $43.3 million, or 0.33% of loans held for investment. At September 30, 2023, 24% of loans held for investment include a fair value net discount of $46.2 million, or 0.35% of loans held for investment. At June 30, 2023, 25% of loans held for investment include a fair value net discount of $48.4 million, or 0.35% of loans held for investment. At March 31, 2023, 26% of loans held for investment include a fair value net discount of $52.2 million, or 0.37% of loans held for investment.
(3) Nonaccrual loans are included in this aging analysis based on the loan's past due status.

21


PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
NONACCRUAL LOANS (1)
(Unaudited)
(Dollars in thousands) Collateral Dependent Loans ACL Non-Collateral Dependent Loans ACL Total Nonaccrual Loans Nonaccrual Loans With No ACL
March 31, 2024
Investor loans secured by real estate
CRE non-owner-occupied $ 24,008  $ 2,657  $ —  $ —  $ 24,008  $ 17,499 
SBA secured by real estate (2)
1,258  —  —  —  1,258  1,258 
Total investor loans secured by real estate 25,266  2,657  —  —  25,266  18,757 
Business loans secured by real estate (3)
CRE owner-occupied 12,602  —  —  —  12,602  12,602 
Franchise real estate secured —  —  292  43  292  — 
Total business loans secured by real estate 12,602  —  292  43  12,894  12,602 
Commercial loans (4)
Commercial and industrial 1,380  —  22,161  1,521  23,541  13,541 
Franchise non-real estate secured —  —  1,559  231  1,559  — 
SBA not secured by real estate 546  —  —  —  546  546 
Total commercial loans 1,926  —  23,720  1,752  25,646  14,087 
Totals nonaccrual loans $ 39,794  $ 2,657  $ 24,012  $ 1,795  $ 63,806  $ 45,446 
______________________________
(1) The ACL for nonaccrual loans is determined based on a discounted cash flow methodology unless the loan is considered collateral dependent. The ACL for collateral dependent loans is determined based on the estimated fair value of the underlying collateral.
(2) SBA loans that are collateralized by hotel/motel real property.
(3) Loans to businesses that are collateralized by real estate where the operating cash flow of the business is the primary source of repayment.
(4) Loans to businesses where the operating cash flow of the business is the primary source of repayment.

22


PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
PAST DUE STATUS
(Unaudited)
Days Past Due (7)
(Dollars in thousands) Current 30-59 60-89 90+ Total
March 31, 2024
Investor loans secured by real estate
CRE non-owner-occupied $ 2,308,852  $ —  $ —  $ 400  $ 2,309,252 
Multifamily 5,558,966  —  —  —  5,558,966 
Construction and land 486,734  —  —  —  486,734 
SBA secured by real estate (1)
34,409  —  381  416  35,206 
Total investor loans secured by real estate 8,388,961  —  381  816  8,390,158 
Business loans secured by real estate (2)
CRE owner-occupied 2,144,734  —  —  4,628  2,149,362 
Franchise real estate secured 294,646  —  —  292  294,938 
SBA secured by real estate (3)
48,426  —  —  —  48,426 
Total business loans secured by real estate 2,487,806  —  —  4,920  2,492,726 
Commercial loans (4)
Commercial and industrial 1,770,803  1,729  575  1,380  1,774,487 
Franchise non-real estate secured 300,336  —  —  1,559  301,895 
SBA not secured by real estate 10,146  254  —  546  10,946 
Total commercial loans 2,081,285  1,983  575  3,485  2,087,328 
Retail loans
Single family residential (5)
72,335  —  18  —  72,353 
Consumer loans 1,830  —  —  —  1,830 
Total retail loans 74,165  —  18  —  74,183 
Loans held for investment before basis adjustment (6)
$ 13,032,217  $ 1,983  $ 974  $ 9,221  $ 13,044,395 
______________________________
(1) SBA loans that are collateralized by hotel/motel real property.
(2) Loans to businesses that are collateralized by real estate where the operating cash flow of the business is the primary source of repayment.
(3) SBA loans that are collateralized by real property other than hotel/motel real property.
(4) Loans to businesses where the operating cash flow of the business is the primary source of repayment.
(5) Single family residential includes home equity lines of credit, as well as second trust deeds.
(6) Excludes the basis adjustment of $32.3 million to the carrying amount of certain loans included in fair value hedging relationships.
(7) Nonaccrual loans are included in this aging analysis based on the loan's past due status.



23


PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
CREDIT RISK GRADES
(Unaudited)
 
(Dollars in thousands) Pass Special
Mention
Substandard
Doubtful
Total Gross
Loans
March 31, 2024
Investor loans secured by real estate        
CRE non-owner-occupied $ 2,271,367  $ 6,699  $ 31,186  $ —  $ 2,309,252 
Multifamily 5,511,977  29,879  17,110  —  5,558,966 
Construction and land 486,303  431  —  —  486,734 
SBA secured by real estate (1)
27,485  —  7,721  —  35,206 
Total investor loans secured by real estate 8,297,132  37,009  56,017  —  8,390,158 
Business loans secured by real estate (2)
CRE owner-occupied 2,056,124  49,227  44,011  —  2,149,362 
Franchise real estate secured 287,593  1,597  5,748  —  294,938 
SBA secured by real estate (3)
43,907  82  4,437  —  48,426 
Total business loans secured by real estate 2,387,624  50,906  54,196  —  2,492,726 
Commercial loans (4)
     
Commercial and industrial 1,620,751  75,752  73,875  4,109  1,774,487 
Franchise non-real estate secured 285,554  648  15,693  —  301,895 
SBA not secured by real estate 10,147  —  799  —  10,946 
Total commercial loans 1,916,452  76,400  90,367  4,109  2,087,328 
Retail loans
Single family residential (5)
72,353  —  —  —  72,353 
Consumer loans 1,830  —  —  —  1,830 
Total retail loans 74,183  —  —  —  74,183 
Loans held for investment before basis adjustment (6)
$ 12,675,391  $ 164,315  $ 200,580  $ 4,109  $ 13,044,395 
______________________________
(1) SBA loans that are collateralized by hotel/motel real property.
(2) Loans to businesses that are collateralized by real estate where the operating cash flow of the business is the primary source of repayment.
(3) SBA loans that are collateralized by real property other than hotel/motel real property.
(4) Loans to businesses where the operating cash flow of the business is the primary source of repayment.
(5) Single family residential includes home equity lines of credit, as well as second trust deeds.
(6) Excludes the basis adjustment of $32.3 million to the carrying amount of certain loans included in fair value hedging relationships.

24


GAAP TO NON-GAAP RECONCILIATIONS

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
(Unaudited)
The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance. However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these adjusted measures, this presentation may not be comparable to other similarly titled adjusted measures reported by other companies.
For periods presented below, return on average assets excluding net loss from investment securities repositioning and FDIC special assessment is a non-GAAP financial measure derived from GAAP based amounts. We calculate this figure by excluding the net loss from investment securities repositioning during the fourth quarter of 2023, the FDIC special assessment, and the related tax impact from net income. Management believes that the exclusion of such nonrecurring items from this financial measure provides useful information to gain an understanding of the operating results of our core business and a better comparison of financial performance.
  Three Months Ended
  March 31, December 31, March 31,
(Dollars in thousands) 2024 2023 2023
Net income (loss) $ 47,025  $ (135,376) $ 62,562 
Less: net loss from investment securities repositioning —  (254,065) — 
Add: FDIC special assessment 523  2,080  — 
Less: tax adjustment (1)
148  72,387  — 
Adjusted net income for average assets $ 47,400  $ 48,382  $ 62,562 
Average assets $ 19,034,396  $ 19,624,945  $ 21,684,873 
ROAA (annualized)
0.99  % (2.76) % 1.15  %
Adjusted ROAA (annualized)
1.00  % 0.99  % 1.15  %
______________________________
(1) Adjusted by statutory tax rate
25


For periods presented below, return on average tangible common equity is a non-GAAP financial measure derived from GAAP-based amounts. We calculate this figure by excluding amortization of intangible assets expense from net income and excluding the average intangible assets and average goodwill from the average stockholders' equity during the periods indicated. Management believes that the exclusion of such items from this financial measure provides useful information to gain an understanding of the operating results of our core business. The adjusted net income, adjusted return on average equity, and adjusted return on average tangible common equity further exclude the nonrecurring items to provide a better comparison to the financial results of prior periods.
  Three Months Ended
  March 31, December 31, March 31,
(Dollars in thousands) 2024 2023 2023
Net income (loss) $ 47,025  $ (135,376) $ 62,562 
Plus: amortization of intangible assets expense 2,836  3,022  3,171 
Less: tax adjustment (1)
801  854  901 
Net income (loss) for average tangible common equity $ 49,060  $ (133,208) $ 64,832 
Less: net loss from investment securities repositioning —  (254,065) — 
Add: FDIC special assessment 523  2,080  — 
Less: tax adjustment (1)
148  72,387  — 
Adjusted net income for average tangible common equity $ 49,435  $ 50,550  $ 64,832 
Average stockholders' equity $ 2,895,949  $ 2,848,951  $ 2,822,392 
Less: average intangible assets 42,134  45,050  54,310 
Less: average goodwill 901,312  901,312  901,312 
Average tangible common equity 1,952,503  1,902,589  1,866,770 
Add: average after-tax realized loss from investment securities repositioning —  (94,887) — 
Adjusted average tangible common equity $ 1,952,503  $ 1,807,702  $ 1,866,770 
ROAE (annualized) 6.50  % (19.01) % 8.87  %
Adjusted ROAE (annualized) 6.55  % 7.03  % 8.87  %
ROATCE (annualized) 10.05  % (28.01) % 13.89  %
Adjusted ROATCE (annualized) 10.13  % 11.19  % 13.89  %
_____________________________________
(1) Adjusted by statutory tax rate.



26


The adjusted basic earnings per common share and adjusted diluted earnings per common share are non-GAAP financial measures derived from GAAP based amounts. We calculate the adjusted basic earnings per common share by dividing net income allocable to common shareholders, excluding the net loss from investment securities repositioning during the fourth quarter of 2023, the FDIC special assessment, and the related tax impact, by the weighted average number of common shares outstanding for the reporting period, excluding outstanding participating securities. The adjusted diluted earnings per common share is computed by dividing net income allocable to common shareholders, excluding the net loss from investment securities repositioning, FDIC special assessment, and the related tax impact, by the weighted average number of diluted common shares outstanding over the reporting period, adjusted to include the effect of potentially dilutive common shares based on adjusted net income, but excludes awards considered participating securities. The computation of diluted earnings per common share excludes the impact of the assumed exercise or issuance of securities that would have an anti-dilutive effect. Management believes that the exclusion of such items from this financial measure provides useful information to gain an understanding of the operating results of our core business and a better comparison of financial performance.
Three Months Ended
March 31, December 31, March 31,
(Dollars in thousands, except per share data) 2024 2023 2023
Basic
Net income (loss) $ 47,025  $ (135,376) $ 62,562 
Less: dividends and undistributed earnings allocated to participating securities (779) (560) (823)
Net income (loss) allocated to common stockholders 46,246  (135,936) 61,739 
Less: net loss from investment securities repositioning —  (254,065) — 
Add: FDIC special assessment 523  2,080  — 
Less: tax adjustment (1)
148  72,387  — 
Adjusted net income allocated to common stockholders $ 46,621  $ 47,822  $ 61,739 
Weighted average common shares outstanding 94,350,259  94,233,813  93,857,812 
Basic earnings (loss) per common share $ 0.49  $ (1.44) $ 0.66 
Adjusted basic earnings per common share $ 0.49  $ 0.51  $ 0.66 
Diluted
Net income (loss) allocated to common stockholders $ 46,246  $ (135,936) $ 61,739 
Less: net loss from investment securities repositioning —  (254,065) — 
Add: FDIC special assessment 523  2,080  — 
Less: tax adjustment (1)
148  72,387  — 
Adjusted net income allocated to common stockholders $ 46,621  $ 47,822  $ 61,739 
Weighted average common shares outstanding 94,350,259  94,233,813  93,857,812 
Dilutive effect of share-based compensation 127,096  —  324,710 
Weighted average diluted common shares 94,477,355  94,233,813  94,182,522 
Dilutive effect of share-based compensation —  101,065  — 
Adjusted weighted average diluted common shares 94,477,355  94,334,878  94,182,522 
Diluted earnings (loss) per common share $ 0.49  $ (1.44) $ 0.66 
Adjusted diluted earnings per common share $ 0.49  $ 0.51  $ 0.66 
______________________________
(1) Adjusted by statutory tax rate
27


Pre-provision net revenue is a non-GAAP financial measure derived from GAAP-based amounts. We calculate the pre-provision net revenue by excluding income tax and provision for credit losses from net income. The adjusted pre-provision net income further excludes the net loss from investment securities repositioning during the fourth quarter of 2023 and the FDIC special assessment to provide a better comparison of financial performance. Management believes that the exclusion of such items from this financial measure provides useful information to gain an understanding of the operating results of our core business and a better comparison to the financial results of prior periods.
Three Months Ended
March 31, December 31, March 31,
(Dollars in thousands) 2024 2023 2023
Interest income $ 213,431  $ 217,192  $ 221,343 
Interest expense 68,304  70,403  52,733 
Net interest income 145,127  146,789  168,610 
Noninterest income (loss) 25,774  (234,194) 21,186 
Revenue (loss) 170,901  (87,405) 189,796 
Noninterest expense 102,633  102,770  101,352 
Pre-provision net revenue (loss) 68,268  (190,175) 88,444 
Less: net loss from investment securities repositioning —  (254,065) — 
Add: FDIC special assessment 523  2,080  — 
Adjusted pre-provision net revenue $ 68,791  $ 65,970  $ 88,444 
Pre-provision net revenue (loss) (annualized) $ 273,072  $ (760,700) $ 353,776 
Adjusted pre-provision net revenue (annualized) $ 275,164  $ 263,880  $ 353,776 
Average assets $ 19,034,396  $ 19,624,945  $ 21,684,873 
Pre-provision net revenue (loss) to average assets 0.36  % (0.97) % 0.41  %
Pre-provision net revenue (loss) to average assets (annualized) 1.43  % (3.88) % 1.63  %
Adjusted pre-provision net revenue on average assets 0.36  % 0.34  % 0.41  %
Adjusted pre-provision net revenue on average assets (annualized) 1.45  % 1.34  % 1.63  %


28


Efficiency ratio is a non-GAAP financial measure derived from GAAP-based amounts. This figure represents the ratio of noninterest expense, less amortization of intangible assets and other real estate owned operations, where applicable, to the sum of net interest income before provision for credit losses and total noninterest income less (loss) gain from investment securities, (loss) gain from other real estate owned, and gain from debt extinguishment. The adjusted efficiency ratio further excludes the FDIC special assessment to provide a better comparison to the financial results of prior periods. Management believes that the exclusion of such items from this financial measure provides useful information to gain an understanding of the operating results of our core business.
Three Months Ended
March 31, December 31, March 31,
(Dollars in thousands) 2024 2023 2023
Total noninterest expense $ 102,633  $ 102,770  $ 101,352 
Less: amortization of intangible assets 2,836  3,022  3,171 
Less: other real estate owned operations, net 46  103  108 
Adjusted noninterest expense 99,751  99,645  98,073 
Less: FDIC special assessment 523  2,080  — 
Adjusted noninterest expense excluding FDIC special assessment $ 99,228  $ 97,565  $ 98,073 
Net interest income before provision for credit losses $ 145,127  $ 146,789  $ 168,610 
Add: total noninterest income (loss) 25,774  (234,194) 21,186 
Less: net (loss) gain from sales of investment securities —  (254,065) 138 
Less: net loss from other real estate owned
—  (24) — 
Less: net gain from debt extinguishment 5,067  793  — 
Adjusted revenue
$ 165,834  $ 165,891  $ 189,658 
Efficiency ratio 60.2  % 60.1  % 51.7  %
Adjusted efficiency ratio excluding FDIC special assessment 59.8  % 58.8  % 51.7  %


29


Tangible book value per share and tangible common equity to tangible assets (the “tangible common equity ratio”) are non-GAAP financial measures derived from GAAP-based amounts. We calculate tangible book value per share by dividing tangible common equity by common shares outstanding, as compared to book value per share, which we calculate by dividing common stockholders' equity by shares outstanding. We calculate the tangible common equity ratio by excluding the balance of intangible assets from common stockholders' equity and dividing by tangible assets. We believe that this information is consistent with the treatment by bank regulatory agencies, which excludes intangible assets from the calculation of risk-based capital ratios. Accordingly, we believe that these non-GAAP financial measures provide information that is important to investors and that is useful in understanding our capital position and ratios.
  March 31, December 31, September 30, June 30, March 31,
(Dollars in thousands, except per share data) 2024 2023 2023 2023 2023
Total stockholders' equity $ 2,902,801  $ 2,882,581  $ 2,855,534  $ 2,849,134  $ 2,831,161 
Less: intangible assets 941,761  944,597  947,619  950,674  953,729 
Tangible common equity $ 1,961,040  $ 1,937,984  $ 1,907,915  $ 1,898,460  $ 1,877,432 
Total assets $ 18,813,181  $ 19,026,645  $ 20,275,720  $ 20,747,883  $ 21,361,564 
Less: intangible assets 941,761  944,597  947,619  950,674  953,729 
Tangible assets $ 17,871,420  $ 18,082,048  $ 19,328,101  $ 19,797,209  $ 20,407,835 
Tangible common equity ratio 10.97  % 10.72  % 9.87  % 9.59  % 9.20  %
Common shares issued and outstanding 96,459,966 95,860,092 95,900,847 95,906,217 95,714,777
Book value per share $ 30.09  $ 30.07  $ 29.78  $ 29.71  $ 29.58 
Less: intangible book value per share 9.76  9.85  9.88  9.91  9.96 
Tangible book value per share $ 20.33  $ 20.22  $ 19.89  $ 19.79  $ 19.61 

Cost of non-maturity deposits is a non-GAAP financial measure derived from GAAP-based amounts. Cost of non-maturity deposits is calculated as the ratio of non-maturity deposit interest expense to average non-maturity deposits. We calculate non-maturity deposit interest expense by excluding interest expense for all certificates of deposit from total deposit expense, and we calculate average non-maturity deposits by excluding all certificates of deposit from total deposits. Management believes cost of non-maturity deposits is a useful measure to assess the Company's deposit base, including its potential volatility.
Three Months Ended
March 31, December 31, March 31,
(Dollars in thousands) 2024 2023 2023
Total deposits interest expense $ 59,506  $ 60,915  $ 40,234 
Less: certificates of deposit interest expense 19,075  16,758  7,775 
Less: brokered certificates of deposit interest expense 6,669  10,759  13,056 
Non-maturity deposit expense $ 33,762  $ 33,398  $ 19,403 
Total average deposits $ 15,055,747  $ 15,536,701  $ 17,324,442 
Less: average certificates of deposit 1,727,728  1,604,507  1,206,966 
Less: average brokered certificates of deposit 568,872  918,596  1,443,783 
Average non-maturity deposits $ 12,759,147  $ 13,013,598  $ 14,673,693 
Cost of non-maturity deposits 1.06  % 1.02  % 0.54  %
30
EX-99.2 3 exhibit9921q24ipvdist423.htm EX-99.2 exhibit9921q24ipvdist423
Investor Presentation First Quarter 2024 April 24, 2024 Ronald J. Nicolas, Jr. Sr. EVP & Chief Financial Officer rnicolas@ppbi.com 949-864-8000 Steve Gardner Chairman, Chief Executive Officer, & President sgardner@ppbi.com 949-864-8000


 
2© 2024 Pacific Premier Bancorp, Inc. | All rights reserved FORWARD LOOKING STATEMENTS AND WHERE TO FIND MORE INFORMATION Forward Looking Statements This investor presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the financial condition, results of operations, business plans and the future performance of Pacific Premier Bancorp, Inc. (“PPBI” or the “Company”), including its wholly-owned subsidiary Pacific Premier Bank (“Pacific Premier” or the “Bank”). Words such as “anticipates,” “believes,” “estimates,” “expects,” “forecasts,” “intends,” “plans,” “projects,” “could,” “may,” “should,” “will” or other similar words and expressions are intended to identify these forward-looking statements. These forward-looking statements are based on PPBI’s current expectations and beliefs concerning future developments and their potential effects on the Company including, without limitation, plans, strategies and goals, and statements about the Company’s expectations regarding revenue and asset growth, financial performance and profitability, loan and deposit growth, yields and returns, loan diversification and credit management, stockholder value creation, capital management, tax rates and acquisitions we have made or may make. Because forward-looking statements relate to future results and occurrences, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. Many possible events or factors could affect PPBI’s future financial results and performance and could cause actual results or performance to differ materially from anticipated results or performance. These risks and uncertainties include, but are not limited to, the following: the strength of the United States economy in general and the strength of the local economies in which we conduct operations; recent adverse developments in the banking industry highlighted by high-profile bank failures and the potential impact of such developments on customer confidence, liquidity and regulatory responses to these developments; the effects of, and changes in, our ability to attract and retain deposits and access to other sources of liquidity; trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; interest rate, liquidity, economic, market, credit, operational and inflation/deflation risks associated with our business, including the speed and predictability of changes in these risks; the effect of acquisitions we have made or may make, including, without limitation, the failure to achieve the expected revenue growth and/or expense savings from such acquisitions, and/or the failure to effectively integrate an acquisition target into our operations; the timely development of competitive new products and services and the acceptance of these products and services by new and existing customers; the impact of changes in financial services policies, laws and regulations, including those concerning taxes, banking, securities and insurance, and the application thereof by regulatory bodies; compliance risks, including the costs of monitoring, testing, and maintaining compliance with complex laws and regulations; the effectiveness of our risk management framework and quantitative models; changes in the level of our nonperforming assets and charge-offs; the effect of changes in accounting policies and practices or accounting standards, as may be adopted from time-to-time by bank regulatory agencies, the U.S. Securities and Exchange Commission (“SEC”), the Public Company Accounting Oversight Board, the Financial Accounting Standards Board or other accounting standards setters; possible credit related impairments of securities held by us; possible impairment charges to goodwill, including any impairment that may result from increasing volatility in our stock price; the impact of governmental efforts to restructure the U.S. financial regulatory system, including any amendments to the Dodd-Frank Wall Street Reform and Consumer Protection Act; recent or future changes in the FDIC insurance assessment rate; changes in consumer spending, borrowing and savings habits; the effects of our lack of a diversified loan portfolio, including the risks of geographic and industry concentrations; the possibility that we may reduce or discontinue the payments of dividends on our common stock; the possibility that we may discontinue, reduce or limit repurchases of common stock; changes in the financial performance and/or condition of our borrowers; changes in the competitive environment among financial and bank holding companies and other financial service providers; geopolitical conditions, including acts or threats of terrorism, actions taken by the United States or other governments in response to acts or threats of terrorism and/or military conflicts, including the war between Russia and Ukraine, and the war in the Middle East, which could impact business and economic conditions in the United States and abroad; public health crises and pandemics, and their effects on the economic and business environments in which we operate, including on our credit quality and business operations, as well as the impact on general economic and financial market conditions; climate change, including regulatory, compliance and credit and reputational risks; cybersecurity threats and the cost of defending against them; natural disasters, earthquakes, fires and severe weather; unanticipated regulatory or legal proceedings; and our ability to manage the risks involved in the foregoing. Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Company's 2023 Annual Report on Form 10-K and other filings filed with the SEC and available at the SEC’s Internet site (http://www.sec.gov). The Company undertakes no obligation to revise or publicly release any revision or update to these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made. Non-U.S. GAAP Financial Measures This presentation contains non-U.S. GAAP financial measures. For purposes of Regulation G promulgated by the SEC, a non-U.S. GAAP financial measure is a numerical measure of the registrant’s historical or future financial performance, financial position or cash flows that excludes amounts or is subject to adjustments that have the effect of excluding amounts that are included in the most directly comparable measure calculated and presented in accordance with U.S. GAAP in the statement of income, statement of financial condition or statement of cash flows (or equivalent statements) of the issuer; or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented in this regard. U.S. GAAP refers to generally accepted accounting principles in the United States. Pursuant to the requirements of Regulation G, PPBI has provided reconciliations within this presentation, as necessary, of the non-U.S GAAP financial measures to the most directly comparable U.S. GAAP financial measures. For more details on PPBI’s non-U.S. GAAP measures, refer to the Appendix in this presentation.


 
3© 2024 Pacific Premier Bancorp, Inc. | All rights reserved PRESENTATION CONTENTS Corporate Overview 4 First Quarter Performance Highlights 6 Balance Sheet Highlights 9 Asset Quality & Credit Risk Management 16 Loan Metrics 21 Strategy and Technology 30 Culture and Governance 33 Appendix: Non-GAAP Reconciliation 39


 
PPBI Corporate Overview


 
5© 2024 Pacific Premier Bancorp, Inc. | All rights reserved Balance Sheet and Capital Ratios(2) Profitability and Credit Quality(2) Assets $18.8 billion ROAA 0.99% Loans HFI(4) $13.0 billion PPNR ROAA(3) 1.43% TCE / TA(3) 10.97% Efficiency Ratio(3) 60.2% Tier 1 Capital Ratio 15.02% NPA / Assets 0.34% Total Capital Ratio 18.23% ACL / Loans 1.48% Premier commercial bank in key metropolitan areas throughout the Western U.S. 1. Market data as of April 23, 2024 2. As of or for the three months ended March 31, 2024 3. Please refer to non-U.S. GAAP reconciliation in the appendix 4. Excludes the basis adjustment associated with the application of hedge accounting on certain loans 1Q24 Financial Highlights PACIFIC PREMIER BANCORP, INC. Corporate Overview & Market Data Branch Network 58 Full Service Branch Locations Market Capitalization(1) $2.2 Billion Dividend Yield(1) 5.84% P/TBV(1) 1.12x Pacific Premier Footprint 8 2 Arizona Phoenix (1) Tucson (2) 3 Nevada Las Vegas (1) 1 Southern California Los Angeles-Orange (21) San Diego (5) Riverside-San Bernardino (9) 35 Central Coast California San Luis Obispo (7) Santa Barbara (2) 9 Pacific Northwest Seattle MSA (7) Other Washington (1) Portland MSA (2)


 
First Quarter Performance Highlights


 
7© 2024 Pacific Premier Bancorp, Inc. | All rights reserved Q1 2024 RESULTS 1. Non-U.S. GAAP measure, refer to the Non-GAAP reconciliation in the appendix for more information 2. Includes federally-insured deposits, $884 million of collateralized municipal deposits, and $70 million of privately insured deposits 3. Excludes the basis adjustment associated with the application of hedge accounting on certain loans 4. Including fair value net discount on acquired loans 5. Total unused borrowing capacity of $8.5 billion at March 31, 2024 and includes $344 million of unpledged US Treasurys with maturity date of twelve months or less Operating Results • Net income of $47.0 million, or $0.49 per diluted share • 1Q24 results; PPNR ROAA of 1.43%(1), ROAA of 0.99%, and ROATCE of 10.05%(1) • Net interest margin expanded 11 bps to 3.39% in Q1 2024 • Efficiency ratio of 60.2%(1) and noninterest expense was flat at $102.6 million compared to Q4 2023 Loans • Loan portfolio of $13.0 billion(3) • 1Q 2024 loan yields of 5.29% • Loan / deposit ratio of 85.7%, reflecting non-maturity deposit growth of $120 million • Quarterly loan production of $45.6 million Deposits • Total deposits increased to $15.2 billion, cost of funds increased 4 bps to 1.73% • Non-maturity deposits increased to $12.9 billion, or 84.4% of total deposits • Average cost of non-maturity deposits of 1.06%(1); spot cost of non-maturity deposits of 1.12% • 1Q 2024 insured and collateralized deposits(2) comprised 66% of total deposits Capital & Liquidity • Tangible common equity to tangible assets increased to 25 bps to 10.97%(1) • Tangible book value per share increased $0.11 to $20.33(1) • Total available liquidity of $9.9 billion at March 31, 2024(5), including ample cash position of $1.0 billion Asset Quality • Delinquent loans were 0.09% of total loans held for investment • Nonperforming assets were 0.34% of total assets • Net charge-offs of $6.4 million or 0.05% as a percentage of average total loans • ACL for LHFI of $192.3 million, or 1.48% of loans; total loss absorption capacity equals 1.79% of loans(4)


 
8© 2024 Pacific Premier Bancorp, Inc. | All rights reserved ACCUMULATING CAPITAL Consolidated PPBI Capital Ratios • Q1 2024 capital levels significantly exceed well-capitalized regulatory requirements reflecting emphasis on capital accumulation 1. Non-U.S. GAAP measure, refer to the Non-GAAP reconciliation in the appendix for more information Consolidated PPBI Pacific Premier Bank Tangible Common Equity Ratio(1) 10.97% 9.20% 8.79% Leverage Ratio 11.48% 10.41% 10.10% Common Equity Tier 1 Ratio (CET1) 15.02% 13.54% 11.80% Tier 1 Ratio 15.02% 13.54% 11.80% Total Capital Ratio 18.23% 16.33% 14.37% Leverage Ratio 12.97% 11.93% 11.66% Common Equity Tier 1 Ratio (CET1) 16.96% 15.52% 13.61% Tier 1 Ratio 16.96% 15.52% 13.61% Total Capital Ratio 18.21% 16.55% 14.47% Q1 2024 Q1 2023 Q1 2022 10.10% 11.80% 11.80% 14.37% 10.41% 13.54% 13.54% 16.33% 11.48% 15.02% 15.02% 18.23% Tier 1 Leverage Ratio CET1 Ratio Tier 1 Ratio TRBC Ratio 1Q22 1Q23 1Q24


 
PPBI Balance Sheet Highlights


 
10© 2024 Pacific Premier Bancorp, Inc. | All rights reserved Total Deposits of $15.2 billion as of March 31, 2024 Relationship-based core deposits • Well-diversified and granular customer base with low-cost transaction deposits reflects our relationship-based business model • Non-maturity deposits comprise 84.4% of total deposits • Non-maturity deposit costs of 1.06%(3), 21% cumulative beta 4Q21-1Q24 • Uninsured and uncollateralized deposits 34% of total deposits as of March 31, 2024, flat compared to December 31, 2023 HIGH QUALITY DEPOSIT FRANCHISE 1. As of March 31, 2024 2. Quarterly average cost 3. Please refer to the non-U.S. GAAP information in the appendix 4. Excludes Commerce Escrow and Exchange, HOA and Pacific Premier Trust relationships Quarterly Average Cost of Total Deposits Trend Relative to Fed Funds Rate Total Average Cost of Deposits = 31% Cumulative Beta 4Q21-1Q24 Cost of non- maturity deposits: 1.06% Deposits Detail as of March 31, 2024 Average Length of Commercial and Consumer Banking Relationship(4) = 13.1 years Noninterest-bearing Deposits 33% Interest-bearing Non-maturity deposits 51% Retail CDs 12% Brokered Deposits 4% 0.33 1.58 3.08 4.33 4.83 5.08 5.33 5.33 5.33 0.04 0.06 0.22 0.58 0.94 1.27 1.50 1.56 1.59 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 Federal Funds Rate Cost of Total Deposits Balance(1) % of Total Avg. Cost of Deposits(2) Spot Cost of Deposits (dollars in thousands) Noninterest-bearing demand 4,997,636$ 33% 0.00% 0.00% Interest-bearing demand 2,785,626 18% 1.40% 1.55% Money market / savings 5,037,636 33% 1.95% 1.99% Total non-maturity deposits 12,820,898 84% 1.06% 1.12% Retail certificates of deposit 1,793,922 12% 4.44% 4.52% Wholesale/brokered certificates of deposit 573,008 4% 4.72% 4.66% Total maturity deposits 2,366,930 16% 4.51% 4.56% Total deposits 15,187,828$ 100% 1.59% 1.66%


 
11© 2024 Pacific Premier Bancorp, Inc. | All rights reserved 1. Uninsured and uncollateralized deposits estimated as total deposits less federally-insured deposits, $884 million of collateralized municipal deposits, and $70 million of privately insured deposits 2. Also includes interest-bearing time deposits with financial institutions 3. Based on approved borrowing capacity as of March 31, 2024; Represents $344 million of unpledged US treasurys with maturity of 12 months or less STRONG LIQUIDITY POSITION Quarterly Period-end Cash Balance Trends ($ in millions)(2) Well-positioned with enhanced liquidity • Ample cash of $1.0 billion at March 31, 2024 • Reduced FHLB advances by $400 million and brokered deposits by $38 million in 1Q24 • Total liquidity coverage ratio of 1.9x to uninsured and uncollateralized deposits(1)(3) • Significant secondary sources of liquidity with total liquidity of $9.9 billion(3) Sources of Liquidity as of March 31, 2024(3) 1Q24 Liquidity / Uninsured & Uncollateralized Deposits ($ in billions)(1)(3) 1.9x Coverage $9.9 $5.2 Total Liquidity Estimated Uninsured & Uncollateralized Deposits $1,427 $1,465 $1,402 $937 $1,030 6.7% 7.1% 6.9% 4.9% 5.5% 1Q23 2Q23 3Q23 4Q23 1Q24 Cash and cash equivalents Cash / Total Assets ($ in millions) As of March 31, 2024 Cash and Cash Equivalents 1,030$ Short-term US Treasurys(3) 344 On Balance Sheet Liquidity 1,374 Additional Sources of Liquidity Unused FHLB Borrowing Capacity 4,687 Correspondent Banks 390 FRB Discount Window 3,448 Total Unused Borrowing Capacity 8,525 Total Liquidity 9,899$


 
12© 2024 Pacific Premier Bancorp, Inc. | All rights reserved Note: All dollars in thousands, unless noted otherwise Note: SBA loans are unguaranteed portion and represent approximately 25% of principal balance for the respective borrower WELL STRUCTURED LOAN PORTFOLIO Loans Outstanding by Type and Weighted Average Rate(1) March 31, 2024 Loan Repricing Structure(5) New Commitments and Prepay / Payoff Trends(4) - 1. As of March 31, 2024 and excludes the impact of fees, discounts and premiums 2. SBA loans that are collateralized by hotel real property 3. SBA loans that are collateralized by real property other than hotel real property 4. Dollars in millions, Payoff & Prepayment includes prepayments, maturities and normal amortization. 5. As of March 31, 2024, and includes $1.35 billion of variable swaps on fixed rate loans, Loan balances reflect unpaid principal balance and do not include capitalized costs and fees Fixed with Variable Swap 10% Fixed 19% Adjustable 43% Variable 28% $117 $148 $68 $128 $46 $520 $583 $370 $423 $359 4.68% 4.73% 4.76% 4.87% 4.91% 1Q23 2Q23 3Q23 4Q23 1Q24 New Commitments Amort. / Payoff / Prepay Weighted Avg. Rate Balance % of Total Weighted Average Rate(1) Investor real estate secured CRE non-owner occupied 2,309,252$ 17.7 % 4.79% Multifamily 5,558,966 42.7 3.99% Construction and land 486,734 3.7 9.01% SBA secured by real estate(2) 35,206 0.3 9.34% Total investor real estate secured 8,390,158 64.4 4.52% Business real estate secured CRE owner-occupied 2,149,362 16.5 4.39% Franchise real estate secured 294,938 2.3 4.76% SBA secured by real estate(3) 48,426 0.4 8.96% Total business real estate secured 2,492,726 19.2 4.52% Commercial loans Commercial and industrial 1,774,487 13.6 7.11% Franchise non-real estate secured 301,895 2.3 5.00% SBA non-real estate secured 10,946 0.1 9.89% Total commercial 2,087,328 16.0 6.83% Retail Loans Single family residential 72,353 0.6 7.45% Consumer 1,830 0.0 7.49% Total retail loans 74,183 0.6 7.45% Total loans held for investment 13,044,395$ 100.2 % 4.91% Basis adjustment associated with fair value hedge (32,324) (0.2) Total loans held for investment 13,012,071$ 100.0 % As of March 31, 2024


 
13© 2024 Pacific Premier Bancorp, Inc. | All rights reserved 1. As of March 31, 2024 excludes the basis adjustment associated with the application of hedge accounting on certain loans 2. Commercial and business loans, distribution by North American Industry Classification (NAICS) Loans Outstanding by Type(1) Commercial & Business Loans by Industry(2) HIGH PERFORMING LOAN PORTFOLIO $13.0 Billion Diversified loan portfolio • Granular loan portfolio reflects deep and long-tenured client relationships – we lend to well-established businesses and real estate operators. • Conservative, cash-flow lender with a long history of proactive and effective credit risk management. • Commercial loans with diverse set of industries across Western U.S. CRE Loan Maturity Profile / Total LHFI (%) as of March 31, 2024 • CRE maturities well-distributed into future periods • Limited exposure to maturity over the next several years CRE Loans Maturity Profile <1 Year 1-2 Years 2-3 Years 3-5 Years >5 Years Total Multifamily 0.4% 0.6% 0.8% 2.8% 38.1% 42.7% CRE Owner-Occupied 0.4% 0.5% 0.7% 1.6% 13.3% 16.5% CRE Non-Owner Occupied 1.1% 1.1% 1.3% 3.9% 10.4% 17.8% Total 2.0% 2.2% 2.8% 8.2% 61.8% 77.0% Commercial and industrial 14% CRE owner- occupied 16% CRE non-owner occupied 18% Construction and land 4% Consumer 1% Other Commercial and Business 5% Multifamily (<10 Units) 8% Multifamily (11-25 Units) 12% Multifamily (26-50 Units) 8% Multifamily (51-100 Units) 8% Multifamily (101+ Units) 6% Accommodation and Food Services 10% Construction 12% Manufacturing 9% Other Services (except Public Administration) 8% Health Care and Social Assistance 8% Real Estate and Rental and Leasing 6% Retail Trade 5% Wholesale Trade 4% Educational Services 4% Professional, Scientific, and Technical Services 4% Public Administration 4% Finance and Insurance 9% Agriculture, Forestry, Fishing and Hunting 3% Arts, Entertainment, and Recreation 8% Other 6%


 
14© 2024 Pacific Premier Bancorp, Inc. | All rights reserved < 1 Year 74% 1-3 Years 25% 3-5 Years 1% AFS 40% HTM 60% 5.6 Years Total Duration SECURITIES PORTFOLIO Investment Securities as of March 31, 2024 Highly-rated securities portfolio • Investment securities totaled $2.9 billion, or 15.3% of total assets as of March 31, 2024 • All 1Q24 purchases of $170.2 million consisted of short-term U.S. Treasurys with maturities of twelve months or less with a weighted average yield of 5.15% • Yield on total investment securities were 3.45% on a spot basis at March 31, 2024(1) $2.9 Billion 1. For AFS and HTM securities, includes FRB Stock and FHLB stock for yields AFS Duration as of March 31, 2024 0.9 Years AFS Duration Securities Mix as March 31, 2024 CMO 17% MBS 8% Muni Bonds 40% Treasurys 19% Corp & Bank Notes 15% Other 1%


 
15© 2024 Pacific Premier Bancorp, Inc. | All rights reserved NET INTEREST MARGIN Net Interest Margin 1Q net interest margin expanded - full quarter’s benefit of 4Q AFS redeployment into cash and investments Loan Yields & Cost of Funds Cost of Deposits Relative to Fed Funds Rate Factors Affecting Net Interest Margin Increase Decrease (1) 1. Period-end Fed Funds Rate at each respective quarter-end 3.44% 3.33% 3.12% 3.28% 3.39% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Reported Net Interest Margin 0.94% 1.27% 1.50% 1.56% 1.59% 4.83% 5.08% 5.33% 5.33% 5.33% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Cost of Deposits Fed Funds Rate 5.10% 5.27% 5.21% 5.29% 5.29% 1.15% 1.45% 1.67% 1.69% 1.73% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Reported Loan Yield Cost of Funds


 
Asset Quality & Credit Risk Management


 
17© 2024 Pacific Premier Bancorp, Inc. | All rights reserved (dollars in thousands) Balance % of Total Loans Held for Investment ACL for LHFI 192,340$ 1.48% Plus: Fair Value Mark on Acquired Loans(3) 41,197 0.32% Total ACL & Fair Value Mark(3) 233,537$ 1.79% LOAN PORTFOLIO & CECL ACL for LHFI + Fair Value MarkAllowance for Credit Losses by Loan Type 1. SBA loans that are collateralized by hotel real property 2. SBA loans that are collateralized by real property other than hotel real property 3. Adds back the FV discount to the loans held for investment Increase Decrease Combined Loss Absorption Capacity CECL model update • Reserves reflect changes in asset quality offset by changes in loan balances and portfolio composition ACL for LHFI Change Attributions ($ in millions) (dollars in thousands) ACL Balance % of Segment Investor loans secured by real estate CRE non-owner occupied 30,781$ 1.33% Multifamily 58,411 1.05% Construction and land 8,171 1.68% SBA secured by real estate(1) 2,184 6.20% Business loans secured by real estate CRE owner-occupied 28,760 1.34% Franchise real estate secured 7,258 2.46% SBA secured by real estate(2) 4,288 8.85% Commercial loans Commercial and industrial 37,107 2.09% Franchise non-real estate secured 14,320 4.74% SBA non-real estate secured 495 4.52% Retail loans Single family residential 442 0.61% Consumer loans 123 6.72% ACL for Loans HFI 192,340$ 1.48% March 31, 2024


 
18© 2024 Pacific Premier Bancorp, Inc. | All rights reserved ASSET QUALITY TRENDS Nonperforming Assets (% of Total Assets) Past Due Loans (% of LHFI) Classified Assets (% of Total Assets) Net Charge-offs (% of Average Loans) Sound asset quality metrics reflecting disciplined & proactive credit risk management Note: Dollars in millions $30.4 $17.4 $25.9 $25.1 $64.1 0.14% 0.08% 0.13% 0.13% 0.34% 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Nonperforming Assets ($ in millions) NPAs / Total Assets $20.8 $31.0 $10.9 $10.1 $12.2 0.15% 0.23% 0.08% 0.08% 0.09% 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Past Due Loans ($ in millions) PD Loans / Loans HFI $3.3 $3.7 $6.8 $3.9 $6.4 0.02% 0.03% 0.05% 0.03% 0.05% 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Net Charge-offs (Recoveries) ($ in millions) NCOs / Avg Loans $166.6 $120.2 $149.7 $142.2 $204.9 0.78% 0.58% 0.74% 0.75% 1.09% 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Classified Assets ($ in millions) Classified Assets / Total Assets


 
19© 2024 Pacific Premier Bancorp, Inc. | All rights reserved 0.34% 3.84% Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 PPBI Peer Median PDNB Failed- Bank Acquisition 4/27/12 CREDIT RISK MANAGEMENT Credit quality has historically outperformed peers throughout varying cycles Nonperforming Assets to Total Assets Comparison CNB Failed- Bank Acquisition 2/11/11 Note: Peer group consists of Western region banks and thrifts with total assets between $5 billion and $71 billion as of December 31, 2023


 
20© 2024 Pacific Premier Bancorp, Inc. | All rights reserved 627% 499% 415% 372% 310% 349% 376% 275% 356% 285% 385% 333% 0% 100% 200% 300% 400% 500% 600% 700% 800% Construction CRE NOO Multifamily CRE Concentration Ratio Note: Prior to 2020, CRE Concentration Ratio defined as (Non-owner Occupied CRE + Construction + Multifamily) / Total Risk-based Capital 1. CRE Concentration Ratio in 2020 and after defined as (Non-owner Occupied CRE + Construction + Multifamily) / (Tier 1 Capital + ACL attributable to loans) CRE Concentration Ratio(1) Decreased Managed Growth Grandpoint Acquisition Experience in managing CRE loans through multiple cycles • 66% of loans included in CRE concentration at March 31, 2024 are multifamily loans with historically strong performance • CRE concentrations are well-managed across the organization and stress-tested semiannually Opus Acquisition LOW RISK CRE LOAN PORTFOLIO


 
Selected Loan Metrics First Quarter 2024 As of March 31, 2024


 
22© 2024 Pacific Premier Bancorp, Inc. | All rights reserved INVESTOR REAL ESTATE SECURED: MULTIFAMILY • Disciplined underwriting focuses on true cash flow, using the lesser of actual or market rents and market vacancy, with no emphasis on projections or rent trending • 86% of loans are personally guaranteed by principals or by entities with significant net worth and liquidity • Portfolio is geographically diversified with a focus on markets that have strong historical performance • Loans to seasoned owners of multifamily properties with extensive operating experience • Limited non-recourse lending reflects seasoned stabilized properties with modest leverage and strong operating results • Core competency for PPB, an asset class which performed well for the bank during the Great Recession of 2008 Portfolio Fundamentals 1. Based on location of primary real property collateral. All California information is for respective county. By Geography (1) By # of Units 1. DSCR is computed using the most recent NOI provided and annualized current payment amount Portfolio Characteristics – Multifamily 3/31/2024 Loan Balance Outstanding $5.6 billion Number of Loans 2,324 Average Loan Size $2.4 million Loan-to-Value (Weighted Avg) 58% DSCR (Weighted Avg) (1) 1.67x Seasoning (Weighted Avg) 43 months % of Total Loans 42.7% ACL Coverage Ratio 1.05% NPAs / Total Assets 0.00% Portfolio Delinquency 0.00%


 
23© 2024 Pacific Premier Bancorp, Inc. | All rights reserved Class A 2% Class B 13% Class C 82% NAP 3% Within 1 Year 12% 1-2 Years 10% 2-3 Years 33% 3-4 Years 17% 4-5 Years 14% >5 Years 14% INVESTOR REAL ESTATE SECURED: MULTIFAMILY • California allows for higher annual increases than other markets (i.e. NYC) - CPI+5%, not to exceed 10% in 12 months (California State-wide) • No Vacancy Control within the State of California, therefore owners have the ability to reprice new vacancies to market rents • Class C multifamily provides relatively affordable workforce housing alternatives near jobs, schools, neighborhood retail and public transportation • Single-family home affordability remains an issue in most of the Bank’s markets, with apartments presenting a more affordable alternative • Limited new originations over the last 24 months, reflecting a seasoned multifamily portfolio that has benefitted from multiple years of permitted rent increases Multifamily Loan Characteristics *Has rent control; Note counties based in CA are subject to State Rent Control Laws (AB 1482). Rent Regulated/Control Rate Reset Period(1) Class Type LA County* 36% Other CA* 23% Oregon* 3% Non-Rent Regulated 38% NAP = not applicable, properties are primarily mobile home parks1. First reset after origination on $4.2 billion of adjustable multifamily loans as of March 31, 2024


 
24© 2024 Pacific Premier Bancorp, Inc. | All rights reserved 3/31/2024 Loan Balance Outstanding (1) $2.3 billion Number of Loans 1,200 Average Loan Size $1.9 million Loan-to-Value (Weighted Avg) 49% DSCR (Weighted Avg) (2) 1.85x Seasoning (Weighted Avg) 61 months % of Total Loans 17.7% ACL Coverage Ratio 1.33% NPAs / Total Assets 0.13% Portfolio Delinquency 0.02% INVESTOR REAL ESTATE SECURED: CRE NON-OWNER OCCUPIED • Disciplined underwriting standards emphasize actual cash flow coverage of debt service and strong collateral support • Majority of loans are personally guaranteed by principals or by entities with significant net worth and liquidity • Portfolio is well-diversified across geographies and property types • Seasoned owners and managers of income properties • Conservative underwriting uses the lesser of actual or market rents and market vacancy, not projections or proformas • Majority of loans are to borrowers who maintain a deposit relationship Portfolio Fundamentals (1)Excludes SBA loans (2)DSCR is computed using the most recent NOI provided and annualized current payment amount By Geography (1) By Property Type Portfolio Characteristics – CRE Non-Owner Occupied 1. Based on location of primary real property collateral. All California information is for respective county.


 
25© 2024 Pacific Premier Bancorp, Inc. | All rights reserved INVESTOR REAL ESTATE SECURED: CRE NOO RETAIL AND OFFICE • Disciplined underwriting uses the lesser of actual or market rents and market vacancy, while considering tenant profile, lease expirations, rollover risk and capital costs • Portfolios are well diversified across geographies and property types Retail • PPB lends on seasoned Class B and C strip and neighborhood centers in well established higher density markets • No exposure to malls and minimal exposure to big-box retailers Office • Minimal exposure to Class A high-rise projects or to central business districts Portfolio Fundamentals (1)Excludes SBA and Franchise loans (2)DSCR is computed using the most recent NOI provided and annualized current payment amount Office: By Geography (1) Retail: By Geography (1) Portfolio Characteristics – Retail and Office CRE NOO Retail Office Loan Balance Outstanding (1) $729.9 million $603.0 million Number of Loans 338 225 Average Loan Size $2.2 million $2.7 million Loan-to-Value (Weighted Avg) 49% 54% DSCR (Weighted Avg) (2) 1.60x 1.51x Seasoning (Weighted Avg) 59 months 57 months % of Total Loans 5.6% 4.6% ACL Coverage Ratio 0.90% 2.90% NPAs / Total Assets 0.00% 0.10% Portfolio Delinquency 0.05% 0.00% 1. Based on location of primary real property collateral. All California information is for respective county.


 
26© 2024 Pacific Premier Bancorp, Inc. | All rights reserved INVESTOR REAL ESTATE SECURED: CRE NOO / SBA HOTEL / MOTEL • No exposure to large conference center hotels, large resorts or casinos • Mix of flagged properties and boutique hotels without significant exposure to central business districts • Loans to seasoned hotel operators, generally with significant resources • Underwriting consistent with management’s conservative approach • SBA represents the retained, unguaranteed portion of approximately 25% of the total outstanding balanceNote: SBA loans are unguaranteed portion and represent approximately 25% of principal balance for the respective borrower Portfolio Fundamentals By Geography (1) SBA vs. non-SBA (1) DSCR is computed using the most recent NOI provided and annualized current payment amount Portfolio Characteristics – Hotel / Motel CRE, non-SBA SBA Loan Balance Outstanding $283.7 million $35.2 million Number of Loans 76 59 Average Loan Size $3.7 million $597,000 Loan-to-Value (Weighted Avg) 49% 75% DSCR (Weighted Avg) (1) 2.62x 1.13x Seasoning (Weighted Avg) 71 months 69 months % of Total Loans 1.8% 0.3% 3/31/2024 Loan Balance Outstanding, Total $318.9 million ACL Coverage Ratio 1.25% NPAs / Total Assets 0.01% Portfolio Delinquency 0.25% 1. Based on location of primary real property collateral. All California information is for respective county.


 
27© 2024 Pacific Premier Bancorp, Inc. | All rights reserved BUSINESS REAL ESTATE SECURED: CRE OWNER OCCUPIED • Relationship borrowers who are core banking clients of PPB • Repayment based on operating cash flows of the business • Business loans secured by owner occupied commercial real estate, along with the business assets of the operating entity occupying the property • Properties located in job centers, with emphasis on metro markets and supporting suburbs, primarily in California and Western states • Disciplined underwriting based on actual business cash flows, not projections • Portfolio is well diversified by industry and geography 1 Distribution by North American Industry Classification System (NAICS) 2. Based on location of primary real property collateral. All California information is for respective county. Portfolio Fundamentals (1) Excludes SBA and Franchise loans By Geography (2) By Industry (1) Portfolio Characteristics – CRE Owner Occupied 3/31/2024 Loan Balance Outstanding (1) $2.1 billion Number of Loans 1,387 Average Loan Size $1.5 million Loan-to-Value (Weighted Avg) 51% Seasoning (Weighted Avg) 53 months % of Total Loans 16.5% ACL Coverage Ratio 1.34% NPAs / Total Assets 0.07% Portfolio Delinquency 0.22%


 
28© 2024 Pacific Premier Bancorp, Inc. | All rights reserved COMMERCIAL AND INDUSTRIAL • Commercial & Industrial loans focused on small and middle market businesses • Portfolio is well diversified by industry and geography • Majority of borrowers have a deposit relationship • Repayment based on operating cash flows of the business • Disciplined underwriting based on actual results, not projections • Limited exposure to syndicated or leveraged loans 1 Distribution by North American Industry Classification System (NAICS) 2. Based on location of primary real property collateral if available, otherwise borrower address is used. All California information is for respective county. Portfolio Fundamentals (1) Excludes SBA and Franchise loans (2) Based on commitment By Geography (2) By Industry (1) Portfolio Characteristics – Commercial and Industrial 3/31/2024 Loan Balance Outstanding (1) $1.8 billion Number of Loans 4,160 Average Loan Size $427,000 Number of Relationships 3,009 Average Relationship Size (2) $1.0 million % of Total Loans 13.6% ACL Coverage Ratio 2.09% NPAs / Total Assets 0.13% Portfolio Delinquency 0.21%


 
29© 2024 Pacific Premier Bancorp, Inc. | All rights reserved FRANCHISE LOANS • Majority of Franchise portfolio are Quick Service Restaurant (“QSR”) brands and fast food with national scale with the resources to innovate and command market share • Well diversified by brand, guarantors, geography and collateral type (CRE and C&I) • 100% of the QSR franchise concepts in our portfolio profile have drive-thru, takeout and/or delivery capabilities, with this component expected to remain higher than pre- pandemic levels and thus bring added strength to our portfolio • Borrowers have over 23 years of operating experience on average • Principals provide personal guarantees and all related loans are cross collateralized and cross defaulted • Highly disciplined approach, maintain well-defined market niche with minimal exceptions 1 Other category includes 16 different concepts, none of which is more than 3% 2. Based on state of primary real property collateral if available, otherwise borrower address. Other category includes 27 different states, none of which is more than 4%. (1) Based on commitment (2) Fixed Charge Coverage Ratio includes certain fixed expenses in the denominator and is a more conservative measure than DSCR By Geography (2) By Concept (1) Portfolio Fundamentals Portfolio Characteristics – Franchise Loans 3/31/2024 Loan Balance Outstanding $596.8 million % of Loans Secured by Real Estate Collateral 49% Number of Relationships 148 Average Relationship Size (1) $4.0 million Average Length of Relationship 66 months Number of Loans 575 Average Loan Size $1.0 million FCCR (2) (Weighted Avg) 1.57 % of Total Loans 4.6% ACL Coverage Ratio 3.62% NPAs / Total Assets 0.01% Portfolio Delinquency 0.31%


 
Strategy and Technology Overview


 
31© 2024 Pacific Premier Bancorp, Inc. | All rights reserved PREMIER 360™ Total client transparency throughout the organization using proprietary Salesforce™ enabled platform ™ Client and Data Management Highly customized solution designed to enhance the client experience, maximize banking relationships, optimize business development and accelerate new client acquisition Workflow Management Automated workflows centered around the client, allowing Pacific Premier to be highly efficient and maximize resource capacity Call Center Management Using the combination of top tier call center technology and Premier 360™, provides employees the right tools to deliver best-in-class services Digital Marketing Management Marketing automation that sends electronic communications to prospective and existing clients on behalf of Pacific Premier ™


 
32© 2024 Pacific Premier Bancorp, Inc. | All rights reserved CLIENT ACQUISITION - PREMIER 360™ New Client Acquisition Onboarding Clients Premier360™ Reporting  Premier360™ is the central database of all potential banking clients and referral sources  Each relationship manager owns a targeted number of prospects and referral sources which they call regularly  Marketing campaigns are customized, targeted and delivered digitally to prospective clients enabling better call penetration  All client onboarding starts and finishes through Premier360™ – universal client view as every business unit has visibility of each prospective and existing client  Each potential banking relationship is customized to the current and future banking needs of the client  Clients have a dedicated relationship manager that owns the relationship  All potential client and referral source calls and appointments are tracked with activity reports in Premier360™  All business units have access to onboarding pipeline to track progress to ensure client expectations are met  All existing client calls and appointments are tracked in Premier360™ to foster stronger relationships


 
PPBI Culture and ESG


 
34© 2024 Pacific Premier Bancorp, Inc. | All rights reserved CULTURE AT PACIFIC PREMIER Our culture is defined by our Success Attributes and they are the foundation of our “one bank, one culture” approach Organizational Culture Integrity • Do the right thing, every time. • Conduct business with the highest ethical standards. • Take responsibility for your actions. Improve • Improvement is incremental. Small changes over time have a significant impact. • Mistakes happen. Learn from them and don’t repeat them. • Be responsible for your personal and professional development. Communicate • Over-communicate. • Provide timely and complete information to all stakeholders. • Collaborate to make better decisions. Achieve • Results matter. • Be open to achieving results in new ways. • A winning attitude is contagious. Urgency • Operate with a sense of urgency. • Be thoughtful, making decisions in a timely manner. • Act today, not tomorrow.


 
35© 2024 Pacific Premier Bancorp, Inc. | All rights reserved We are focused on transparency and continuous improvement in ESG with the 2023 Corporate Social Responsibility Report publication expected in early 2Q24 Environmental ISS QualityScore: 4 Social ISS QualityScore: 3 Governance ISS QualityScore: 1 • Published annual Corporate Social Responsibility Report including SASB and TCFD metrics • Conducted first line of defense ESG awareness training • Recognized as a Civic 50 Honoree for the third consecutive year by the Orange County Business Journal • Awarded an Outstanding rating in our last two consecutive Community Reinvestment Act (CRA) exams • Boosted employee cybersecurity training and communication Current environmental initiatives aim to improve disclosures, evaluate climate risk, and reduce our environmental impact Our commitment to our communities, customers and employees is at the core of our ESG strategy(2) Community Support 7,500 Volunteer Hours 430+ Community Partnerships Our full Board is responsible for overseeing ESG and corporate social responsibility efforts throughout our organization $76.1M in lending to small businesses and small farms 103k participants reached through financial literacy initiatives • Disclosed Scope 1 and Scope 2 greenhouse gas emissions. Evaluated relevancy of Scope 3 factors. • Established Climate-related Credit Risk Working Group and implemented enhanced climate risk procedures for credit underwriters • Sourced 38% of electricity at a key headquarter building from renewable resources • Materially reduced purchases of single-use cups, plates, and utensils in our offices 1. Management = any individual with direct reports 2. Equitable Access & Financial Inclusion and Community Support data is for the 12-month period ended December 31, 2022 Equitable Access & Financial Inclusion COMMITMENT TO ESG • Under the Board, efforts to control and mitigate ESG- related risks are being implemented consistent with the three-line of defense model • 50% of Board committees chaired by diverse Directors (gender or ethnic) • 45% of Independent Directors are women and/or of ethnic diversity Employee HighlightsCommitment to Human Capital Commitment to Continuous Improvement • Refined Premier Inclusion program and strategy to promote initiatives related to diversity, equity and inclusion • Increased outreach efforts to better identify and attract diverse candidates • 2023 Gallup employee engagement survey surpassed average participation rates at 91%


 
36© 2024 Pacific Premier Bancorp, Inc. | All rights reserved Six Independent Directors Independent Director Tenure Added Since 2019 As of 3/31/2024 2022 Rose McKinney-James Managing Principal, Energy Works LLC and McKinney-James & Associates Director, MGM Resorts International Stephanie Hsieh CEO of Waban Advisors, Inc. and prior Executive Director, Biocom California 2021 George Pereira Prior COO and CFO, Charles Schwab Investment Management Inc. 2020 Richard Thomas Prior EVP / CFO, CVB Financial Corp. Former Partner, Deloitte 2019 Barbara Polsky Prior Partner Manatt, Phelps & Phillips, LLP 10+ Years 18% 0-4 Years 36% 5-9 Years 46% Commitment to regular refreshment to evolve our Board in line with our strategy Process Overview • Our Board is committed to annually reviewing the appropriate skills and characteristics required of directors • The Board believes in and actively practices diversity and inclusion, with 45% of its independent directors demonstrating gender or ethnic diversity at 3/31/2024 Key Selection Criteria  Integrity and independence  Composition of the board should reflect sensitivity to the need for diversity with respect to gender, ethnic background and experience  Substantial accomplishments, and prior or current association with institutions noted for their excellence  Demonstrated leadership ability, with broad experience, diverse perspectives and the ability to exercise sound business judgment  Banking/Financial Services expertise  Public company oversight experience  Significant experience in governance areas such as audit, corporate governance, enterprise risk, executive compensation practices, regulatory compliance, data security, technology, climate-related risk oversight and corporate social responsibility  Special skills, expertise or background that add to and complement the Board’s range of skills  Career success that demonstrates the ability to make the kind of important and sensitive judgments that the Board is called upon to make  Availability and energy necessary to perform duties as a director Our Process in Action Average Tenure 6.6 Years BOARD REFRESHMENT & EVALUATION PROCESS 2019 Jaynie Studenmund Prior Head of Retail & Business Banking, First Interstate Bank, Great Western Bank, and Home Savings


 
37© 2024 Pacific Premier Bancorp, Inc. | All rights reserved EXECUTIVE COMPENSATION PHILOSOPHY AND DESIGN 82% of CEO Compensation is variable and “At Risk”, aligned with shareholders(4) 25% Based on ROAA relative to KBW Regional Banking Index(3) 25% Based on target credit risk (NPAs / Assets) 20% Based on target efficiency ratio 30% Based on achievement of Strategic Objectives 50% Consisting of RSUs(1) 50% Consisting of RSAs(2) 1. RSU vesting contingent upon relative TSR over a three year period, attainment of an average relative ROAA percentile goal and attainment of an average relative ROATCE percentile goal 2. RSA’s subject to three-year vesting period 3. Relative ROAA measured against the KBW Regional Bank Index on a relative percentile basis 4. Data is as of December 31, 2023 and included in our 2024 Annual Meeting Proxy Statement Long-Term Incentive Compensation Annual Incentive Compensation Relative Financial Performance Achievement of Business Objectives Alignment with Stockholder Interests Compensation aligned with value creation(4) CEO Compensation Mix Executive Compensation Highlights  Continued open discussion and evaluation regarding metrics used regarding our compensation program as suggested by stockholder feedback  2023 CEO STIP payout resulted in 55% payout of target and no YoY increase in CEO base salary compared to 2022  Compensation committee approved 21% reduction in 2024 CEO LTI target  2021 granted RSUs resulted in 64.7% payout relative to target reflecting alignment of shareholder interests under pay-for-performance plan design 18% 18% 32% 32% Base Salary Target Annual Incentive Restricted Stock RSUs


 
38© 2024 Pacific Premier Bancorp, Inc. | All rights reserved PPBI INVESTMENT THESIS  Shareholder value is our key focus – building long-term value for our owners  Our culture differentiates us and drives fundamentals for all stakeholders  Diverse Board advising on strategy, overseeing risk and ESG, and supporting long-term value creation  Financial results remain solid – strong capital ratios and core earnings  Emphasis on risk management is a key strength of our organization  We have maintained a strong credit culture in both good times and bad  Highly experienced and respected bank acquirer – 11 successful acquisitions since 2011


 
Appendix: Information - Non-GAAP Reconciliation


 
40© 2024 Pacific Premier Bancorp, Inc. | All rights reserved NON-U.S. GAAP FINANCIAL MEASURES 1. Adjusted by statutory tax rate For periods presented below, return on average assets excluding net loss from investment securities repositioning and FDIC special assessment is a non-GAAP financial measure derived from GAAP based amounts. We calculate this figure by excluding the net loss from investment securities repositioning during the fourth quarter of 2023, the FDIC special assessment, and the related tax impact from net income. Management believes that the exclusion of such nonrecurring items from this financial measure provides useful information to gain an understanding of the operating results of our core business and a better comparison of financial performance. March 31, December 31, March 31, (Dollars in thousands) 2024 2023 2023 Net income (loss) 47,025$ (135,376)$ 62,562$ Less: net loss from investment securities repositioning - (254,065) - Add: FDIC special assessment 523 2,080 - Less: tax adjustment (1) 148 72,387 - Adjusted net income for average assets 47,400$ 48,382$ 65,562$ Average assets 19,034,396$ 19,624,945$ 21,684,873$ Return on average assets (annualized) 0.99% -2.76% 1.15% Adjusted return on average assets (annualized) 1.00% 0.99% 1.15% Three Months Ended


 
41© 2024 Pacific Premier Bancorp, Inc. | All rights reserved NON-U.S. GAAP FINANCIAL MEASURES Note: All dollars in thousands, except per share data Tangible book value per share and tangible common equity to tangible assets (the “tangible common equity ratio”) are non-GAAP financial measures derived from GAAP- based amounts. We calculate tangible book value per share by dividing tangible common equity by common shares outstanding, as compared to book value per share, which we calculate by dividing common stockholders' equity by shares outstanding. We calculate the tangible common equity ratio by excluding the balance of intangible assets from common stockholders' equity and dividing by tangible assets. We believe that this information is consistent with the treatment by bank regulatory agencies, which excludes intangible assets from the calculation of risk-based capital ratios. Accordingly, we believe that these non-GAAP financial measures provide information that is important to investors and that is useful in understanding our capital position and ratios. However, these non-U.S. GAAP financial measures are supplemental and are not a substitute for an analysis based on U.S. GAAP measures. As other companies may use different calculations for these measures, this presentation may not be comparable to other similarly titled measures reported by other companies. A reconciliation of the non-U.S. GAAP measure of tangible common equity ratio to the U.S. GAAP measure of common equity ratio and tangible book value per share to the U.S. GAAP measure of book value per share are set forth below. March 31, June 30, Sept. 30, Dec. 31, March 31, 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2023 2023 2023 2024 Total stockholders' equity 175,226$ 199,592$ 298,980$ 459,740$ 1,241,996$ 1,969,697$ 2,012,594$ 2,746,649$ 2,886,311$ 2,798,389$ 2,831,161$ 2,849,134$ 2,855,534$ 2,882,581$ 2,902,801$ Less: intangible assets 24,056 28,564 58,002 111,941 536,343 909,282 891,634 984,076 970,883 956,900 953,729 950,674 947,619 944,597 941,761 Tangible common equity 151,170$ 171,028$ 240,978$ 347,799$ 705,653$ 1,060,415$ 1,120,960$ 1,762,573$ 1,915,428$ 1,841,489$ 1,877,432$ 1,898,460$ 1,907,915$ 1,937,984$ 1,961,040$ Total assets 1,714,187$ 2,037,731$ 2,789,599$ 4,036,311$ 8,024,501$ 11,487,387$ 11,776,012$ 19,736,544$ 21,094,429$ 21,688,017$ 21,361,564$ 20,747,883$ 20,275,720$ 19,026,645$ 18,813,181$ Less: Intangible assets 24,056 28,564 58,002 111,941 536,343 909,282 891,634 984,076 970,883 956,900 953,729 950,674 947,619 944,597 941,761 Tangible assets 1,690,131$ 2,009,167$ 2,731,597$ 3,924,370$ 7,488,158$ 10,578,105$ 10,884,378$ 18,752,468$ 20,123,546$ 20,731,117$ 20,407,835$ 19,797,209$ 19,328,101$ 18,082,048$ 17,871,420$ Tangible common equity ratio 8.94% 8.51% 8.82% 8.86% 9.42% 10.02% 10.30% 9.40% 9.52% 8.88% 9.20% 9.59% 9.87% 10.72% 10.97% Basic shares outstanding 16,656,279 16,903,884 21,570,746 27,798,283 46,245,050 62,480,755 59,506,057 94,483,136 94,389,543 95,021,760 95,714,777 95,906,217 95,900,874 95,860,092 96,459,966 Book value per share 10.52$ 11.81$ 13.86$ 16.54$ 26.86$ 31.52$ 33.82$ 29.07$ 30.58$ 29.45$ 29.58$ 29.71$ 29.78$ 30.07$ 30.09$ Less: intangible book value per share 1.44 1.69 2.69 4.03 11.60 14.55 14.98 10.42 10.29 10.07 9.96 9.91 9.88 9.85 9.76 Tangible book value per share 9.08$ 10.12$ 11.17$ 12.51$ 15.26$ 16.97$ 18.84$ 18.65$ 20.29$ 19.38$ 19.61$ 19.79$ 19.89$ 20.22$ 20.33$ As ofAs of December 31,


 
42© 2024 Pacific Premier Bancorp, Inc. | All rights reserved NON-U.S. GAAP FINANCIAL MEASURES 1. Adjusted by statutory tax rate The adjusted basic earnings per common share and adjusted diluted earnings per common share are non-GAAP financial measures derived from GAAP based amounts. We calculate the adjusted basic earnings per common share by dividing net income allocable to common shareholders, excluding the net loss from investment securities repositioning during the fourth quarter of 2023, the FDIC special assessment, and the related tax impact, by the weighted average number of common shares outstanding for the reporting period, excluding outstanding participating securities. The adjusted diluted earnings per common share is computed by dividing net income allocable to common shareholders, excluding the net loss from investment securities repositioning, FDIC special assessment, and the related tax impact, by the weighted average number of diluted common shares outstanding over the reporting period, adjusted to include the effect of potentially dilutive common shares based on adjusted net income, but excludes awards considered participating securities. The computation of diluted earnings per common share excludes the impact of the assumed exercise or issuance of securities that would have an anti-dilutive effect. Management believes that the exclusion of such items from this financial measure provides useful information to gain an understanding of the operating results of our core business and a better comparison of financial performance. March 31, December 31, March 31, (Dollars in thousands, except per share data) 2024 2023 2023 Basic Net income (loss) $ 47,025 $ (135,376) $ 62,562 Less: dividends and undistributed earnings allocated to participating securities (779) (560) (823) Net income (loss) allocated to common stockholders 46,246 (135,936) 61,739 Less: net loss from investment securities repositioning - (254,065) - Add: FDIC special assessment 523 2,080 - Less: tax adjustment (1) 148 72,387 - Adjusted net income allocated to common stockholders $ 46,621 $ 47,822 $ 61,739 Weighted average common shares outstanding 94,350,259 94,233,813 93,857,812 Basic earnings per common share $ 0.49 $ (1.44) $ 0.66 Adjusted basic earnings per common share $ 0.49 $ 0.51 $ 0.66 Diluted Net income (loss) allocated to common stockholders $ 46,246 $ (135,936) $ 61,739 Less: net loss from investment securities repositioning - (254,065) - Add: FDIC special assessment 523 2,080 - Less: tax adjustment (1) 148 72,387 - Adjusted net income allocated to common stockholders $ 46,621 $ 47,822 $ 61,739 Weighted average common shares outstanding 94,350,259 94,233,813 93,857,812 Dilutive effect of share-based compensation 127,096 - 324,710 Weighted average diluted common shares 94,477,355 94,233,813 94,182,522 Dilutive effect of share-based compensation - 101,065 - Adjusted weighted average diluted common shares 94,477,355 94,334,878 94,182,522 Diluted earnings per common share $ 0.49 $ (1.44) $ 0.66 Adjusted diluted earnings per common share $ 0.49 $ 0.51 $ 0.66 Three Months Ended


 
43© 2024 Pacific Premier Bancorp, Inc. | All rights reserved NON-U.S. GAAP FINANCIAL MEASURES Note: All dollars in thousands For periods presented below, return on average tangible common equity is a non-GAAP financial measure derived from GAAP-based amounts. We calculate this figure by excluding amortization of intangible assets expense from net income and excluding the average intangible assets and average goodwill from the average stockholders' equity during the periods indicated. Management believes that the exclusion of such items from this financial measure provides useful information to gain an understanding of the operating results of our core business. The adjusted net income, adjusted return on average equity, and adjusted return on average tangible common equity further exclude the nonrecurring items to provide a better comparison to the financial results of prior periods. 3/31/2024 12/31/2023 3/31/2023 Net income (loss) 47,025$ (135,376)$ 62,562$ Plus: amortization of intangible assets expense 2,836 3,022 3,171 Less: amortization of intangible assets expense tax adjustment 801 854 901 Net income (loss) for average tangible common equity 49,060$ (133,208)$ 64,832$ Less: net loss from investment securities repositioning - (254,065) - Add: FDIC special assessment 523 2,080 - Less: tax adjustment(1) 148 72,387 Adjusted net income for average tangible common equity 49,435$ 50,550$ 64,832$ Average stockholders' equity 2,895,949$ 2,848,951$ 2,822,392$ Less: average intangible assets 42,134 45,050 54,310 Less: average goodwill 901,312 901,312 901,312 Average tangible common equity 1,952,503$ 1,902,589$ 1,866,770$ Add: average after-tax realized loss from investment securities repositioning - (94,887) - Adjusted average tangible common equity 1,952,503$ 1,807,702$ 1,866,770$ Return on average equity (annualized) 6.50% -19.01% 8.87% Adjusted return on average equity (annualized) 6.55% 7.03% 8.87% Return on average tangible common equity (annualized) 10.05% -28.01% 13.89% Adjusted return on average tangible common equity (annualized) 10.13% 11.19% 13.89% (1) Adjusted by statutory tax rate Three Months Ended . Adjusted by statutory tax rate


 
44© 2024 Pacific Premier Bancorp, Inc. | All rights reserved NON-U.S. GAAP FINANCIAL MEASURES Note: All dollars in thousands Efficiency ratio is a non-GAAP financial measure derived from GAAP-based amounts. This figure represents the ratio of noninterest expense, less amortization of intangible assets and other real estate owned operations, where applicable, to the sum of net interest income before provision for credit losses and total noninterest income less (loss) gain from investment securities, (loss) gain from other real estate owned, and gain from debt extinguishment. The adjusted efficiency ratio further excludes the FDIC special assessment to provide a better comparison to the financial results of prior periods. Management believes that the exclusion of such items from this financial measure provides useful information to gain an understanding of the operating results of our core business. FY 2022 FY 2023 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Total noninterest expense 396,670$ 406,951$ 101,352$ 100,644$ 102,185$ 102,770$ 102,633$ Less: amortization of intangible assets expense 13,983 12,303 3,171 3,055 3,055 3,022 2,836 Less: other real estate owned operations, net - 215 108 8 (4) 103 46 Noninterest expense, adjusted 382,687 394,433 98,073 97,581 99,134 99,645 99,751 Less: FDIC special assessment - 2,080 - - - 2,080 523 Adjusted noninterest expense excluding FDIC special assessment 382,687$ 392,353$ 98,073$ 97,581$ 99,134$ 97,565$ 99,228$ Net interest income 697,112$ 625,039$ 168,610$ 160,092$ 149,548$ 146,789$ 145,127$ Plus: total noninterest income 88,748 (173,918) 21,186 20,539 18,551 (234,194) 25,774 Less: net gain (loss) from investment securities 1,710 (253,927) 138 - - (254,065) - Less: net gain (loss) from other real estate owned - 82 - 106 - (24) - Less: net gain (loss) from debt extinguishment - 793 - - - 793 5,067 Revenue, adjusted 784,150$ 704,173$ 189,658$ 180,525$ 168,099$ 165,891$ 165,834$ Efficiency ratio 48.8% 56.0% 51.7% 54.1% 59.0% 60.1% 60.2% Adjusted efficiency ratio excluding FDIC special assessment 48.8% 55.7% 51.7% 54.1% 59.0% 58.8% 58.8%


 
45© 2024 Pacific Premier Bancorp, Inc. | All rights reserved NON-U.S. GAAP FINANCIAL MEASURES Note: All dollars in thousands Pre-provision net revenue is a non-GAAP financial measure derived from GAAP-based amounts. We calculate the pre-provision net revenue by excluding income tax and provision for credit losses from net income. The adjusted pre-provision net income further excludes the nonrecurring items to provide a better comparison of financial performance. Management believes that the exclusion of such items from this financial measure provides useful information to gain an understanding of the operating results of our core business and a better comparison to the financial results of prior periods. FY 2022 FY 2023 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Interest income 768,578$ 887,985$ 217,781$ 221,343$ 225,388$ 224,062$ 217,192$ 213,431$ Interest expense 71,466 262,946 36,385 52,733 65,296 74,514 70,403 68,304 Net interest income 697,112 625,039 181,396 168,610 160,092 149,548 146,789 145,127 Noninterest income (loss) 88,748 (173,918) 20,497 21,186 20,539 18,551 (234,194) 25,774 Revenue (Loss) 785,860 451,121 201,893 189,796 180,631 168,099 (87,405) 170,901 Noninterest expense 396,670 406,951 99,182 101,352 100,644 102,185 102,770 102,633 Pre-provision net revenue (loss) 389,190 44,170 102,711 88,444 79,987 65,914 (190,175) 68,268 Less: net loss from investment securities repositioning - (254,065) - - - - (254,065) - Add: FDIC special assessment - 2,080 - - - - 2,080 523 Adjusted pre-provision net revenue 389,190$ 300,315$ 102,711$ 88,444$ 79,987$ 65,914$ 65,970$ 68,791$ Pre-provision net revenue (loss) (annualized) 389,190$ 44,170$ 410,844$ 353,776$ 319,948$ 263,656$ (760,700)$ 273,072$ Adjusted pre-provision net revenue (loss) (annualized) 389,190$ 300,315$ 410,844$ 353,776$ 319,948$ 263,656$ 263,880$ 275,164$ Average assets 21,513,428$ 20,787,793$ 21,728,933$ 21,684,873$ 21,058,006$ 20,805,787$ 19,624,945$ 19,034,396$ PPNR / average assets 1.81% 0.21% 0.47% 0.41% 0.38% 0.32% (0.97%) 0.36% PPNR / average assets (annualized) 1.81% 0.21% 1.89% 1.63% 1.52% 1.27% (3.88%) 1.43% Adjusted PPNR / average assets 1.81% 1.44% 0.47% 0.41% 0.38% 0.32% 0.34% 0.36% Adjusted PPNR / average assets (annualized) 1.81% 1.44% 1.89% 1.63% 1.52% 1.27% 1.34% 1.45%


 
46© 2024 Pacific Premier Bancorp, Inc. | All rights reserved NON-U.S. GAAP FINANCIAL MEASURES Cost of non-maturity deposits is a non-GAAP financial measure derived from GAAP-based amounts. Cost of non-maturity deposits is calculated as the ratio of non- maturity deposit interest expense to average non-maturity deposits. We calculate non-maturity deposit interest expense by excluding interest expense for all certificates of deposit from total deposit expense, and we calculate average non-maturity deposits by excluding all certificates of deposit from total deposits. Management believes cost of non-maturity deposits is a useful measure to assess the Company's deposit base, including its potential volatility. Note: All dollars in thousands Q1 2024 Q4 2023 Q1 2023 Total deposits interest expense 59,506$ 60,915$ 40,234$ Less: certificates of deposit interest expense 19,075 16,758 7,775 Less: brokered certificates of deposit interest expense 6,669 10,759 13,056 Non-maturity deposit expense 33,762$ 33,398$ 19,403$ Total average deposits 15,055,747$ 15,536,701$ 17,324,442$ Less: average certificates of deposit 1,727,728 1,604,507 1,206,966 Less: average brokered certificates of deposits 568,872 918,596 1,443,783 Average non-maturity deposits 12,759,147$ 13,013,598$ 14,673,693$ Cost of non-maturity deposits 1.06% 1.02% 0.54%