Pacific Premier Announces Securities Portfolio Repositioning

Pacific Premier Bancorp, Inc. (Nasdaq: PPBI) ("Pacific Premier"), the holding company of Pacific Premier Bank (the “Bank,” and together with Pacific Premier, the “Company”), announced the Bank completed an investment securities portfolio repositioning. The Bank sold approximately $1.27 billion of available-for-sale securities consisting primarily of lower-yielding agency and mortgage-backed debt securities with an average yield of 1.34% for an estimated after-tax loss of approximately $182.3 million. The Company expects to deploy the net proceeds during the fourth quarter into a mix of cash and higher-yielding earning assets with an expected average yield of approximately 5.0%. The Company anticipates that the repositioning will contribute an incremental $50.4 million in net interest income on an annualized basis and will be neutral to tangible book value per share.

Steven R. Gardner, Chairman, Chief Executive Officer, and President of Pacific Premier, commented, “We elected to proactively reposition our securities portfolio during the fourth quarter, which we anticipate will provide significant earnings benefit as we enter 2024. We expect the repositioning will add approximately 26 basis points to our net interest margin and contribute approximately $37.1 million to annual net income in 2024.

“Through this securities portfolio repositioning, we have significantly improved the Company’s future earnings power, while simultaneously preserving our strong capital levels and further enhancing our liquidity. This is a logical step in our continued focus on optimizing our balance sheet and maintaining organizational flexibility so that we can capitalize on strategic opportunities to drive long-term shareholder value.”

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.