Pacific Premier Bancorp, Inc. Announces Fourth Quarter 2023 Financial Results and a Quarterly Cash Dividend of $0.33 Per Share

Pacific Premier Bancorp, Inc. (NASDAQ: PPBI) (the “Company” or “Pacific Premier”), the holding company of Pacific Premier Bank (the “Bank”), reported net loss of $135.4 million, or $1.44 per diluted share, for the fourth quarter of 2023, compared with net income of $46.0 million, or $0.48 per diluted share, for the third quarter of 2023, and net income of $73.7 million, or $0.77 per diluted share, for the fourth quarter of 2022.

For the fourth quarter of 2023, the Company’s return on average assets (“ROAA”) was (2.76)%, return on average equity (“ROAE”) was (19.01)%, and return on average tangible common equity (“ROATCE”)⁽¹⁾ was (28.01)%, compared to 0.88%, 6.43%, and 10.08%, respectively, for the third quarter of 2023, and 1.36%, 10.71%, and 16.99%, respectively, for the fourth quarter of 2022.

Excluding net loss of $254.1 million from an investment securities repositioning transaction and $2.1 million FDIC special assessment expense⁽¹⁾, the Company’s adjusted net income was $48.4 million, or $0.51 per diluted share, ROAA was 0.99%, ROAE was 7.03%, and ROATCE was 11.19% for the fourth quarter of 2023.

Total assets as of December 31, 2023 were $19.03 billion, compared to $20.28 billion at September 30, 2023, and $21.69 billion at December 31, 2022.

Steven R. Gardner, Chairman, Chief Executive Officer, and President of the Company, commented, “Our team delivered another solid quarter to close out 2023, an extraordinary year for the banking industry. During the fourth quarter, we proactively repositioned our securities portfolio to enhance our future earnings profile and provide additional liquidity as we navigate a challenging operating environment. The repositioning produced immediate results, fueling a 16 basis point net interest margin expansion in the fourth quarter while our capital ratios remain among the strongest in the industry. We generated $0.51 per share in operating earnings when excluding the impact from the securities portfolio repositioning and the FDIC special assessment expense.

“Our financial performance continues to demonstrate the strength of our franchise and our disciplined commitment to prudent capital, liquidity, and credit risk management. Throughout the year, we leveraged our best-in-class service to deepen our relationships with existing clients and attract new clients to the Bank, generating meaningful growth in new deposit account openings while maintaining pricing discipline. The new account opening activity, coupled with our ability to opportunistically deploy liquidity generated from the securities portfolio repositioning, allowed us to reduce higher cost wholesale funding in the fourth quarter by $817 million and to tightly manage our overall cost of funds, which increased only two basis points to 1.69%.

“We enter 2024 on solid footing, with strong capital levels, ready access to significant liquidity, and favorable asset quality measures. Through our relationship-based business model, our bankers consistently communicate with our clients and monitor key trends within their individual businesses and industries. This access provides our organization with valuable information relative to market dynamics, including emerging trends in the commercial real estate markets, which we are closely monitoring. We are committed to responding quickly and proactively to any signs of stress within the loan portfolio. In short, we believe we are well-positioned heading into 2024 to continue to deliver value for our shareholders, clients, employees, and the communities we serve.”

FINANCIAL HIGHLIGHTS
		Three Months Ended
		December 31,				September 30,				December 31,
(Dollars in thousands, except per share data)			2023				2023				2022
Financial Highlights
Net (loss) income		$	(135,376	)		$	46,030			$	73,673
Net interest income			146,789				149,548				181,396
Diluted earnings per share			(1.44	)			0.48				0.77
Common equity dividend per share paid			0.33				0.33				0.33
Return on average assets			(2.76	)%			0.88	%			1.36	%
Return on average equity			(19.01	)			6.43				10.71
Return on average tangible common equity (1)			(28.01	)			10.08				16.99
Pre-provision net (loss) revenue on average assets (1)			(3.88	)			1.27				1.89
Net interest margin			3.28				3.12				3.61
Cost of deposits			1.56				1.50				0.58
Cost of non-maturity deposits (1)			1.02				0.89				0.31
Efficiency ratio (1)			60.1				59.0				47.4
Noninterest expense as a percent of average assets			2.09				1.96				1.83
Total assets		$	19,026,645			$	20,275,720			$	21,688,017
Total deposits			14,995,626				16,007,447				17,352,401
Non-maturity deposits as a percent of total deposits			84.7	%			82.8	%			85.6	%
Noninterest-bearing deposits as a percent of total deposits			32.9				36.1				36.3
Loans-to-deposit ratio			88.6				82.9				84.6
Book value per share		$	30.07			$	29.78			$	29.45
Tangible book value per share (1)			20.22				19.89				19.38
Tangible common equity ratio			10.72	%			9.87	%			8.88	%
Common equity tier 1 capital ratio			14.32				14.87				12.99
Total capital ratio			17.29				17.74				15.53

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

INCOME STATEMENT HIGHLIGHTS

Net Interest Income and Net Interest Margin

Net interest income totaled $146.8 million in the fourth quarter of 2023, a decrease of $2.8 million, or 1.8%, from the third quarter of 2023. The decrease in net interest income was primarily attributable to lower average interest-earning asset balances, partially offset by higher yields on interest-earning assets as well as lower average wholesale/brokered CD balances and lower average borrowings, both a direct result of our balance sheet repositioning.

The net interest margin for the fourth quarter of 2023 increased 16 basis points to 3.28% from 3.12% in the third quarter of 2023. The increase was primarily due to higher loan yields as well as higher investment securities yields resulting from the sale of lower-yielding available-for-sale ("AFS") securities of $1.26 billion at fair value at a weighted average yield of 1.34% and redeploying part of the sale proceeds into higher-yielding AFS securities at a weighted average yield of 5.28% during the fourth quarter of 2023.

Net interest income for the fourth quarter of 2023 decreased $34.6 million, or 19.1%, compared to the fourth quarter of 2022. The decrease was primarily attributable to a higher cost of funds as a result of the higher interest rate environment.

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCES AND YIELD DATA
(Unaudited)
		Three Months Ended
		December 31, 2023									September 30, 2023									December 31, 2022
(Dollars in thousands)		Average Balance			Interest			Average Yield/ Cost			Average Balance			Interest			Average Yield/ Cost			Average Balance			Interest			Average Yield/ Cost
Assets
Cash and cash equivalents		$	1,281,793		$	15,744		4.87	%		$	1,695,508		$	21,196		4.96	%		$	1,015,197		$	8,636		3.37	%
Investment securities			3,203,608			24,675		3.08				3,828,766			25,834		2.70				4,130,042			24,688		2.39
Loans receivable, net (1) (2)			13,257,767			176,773		5.29				13,475,194			177,032		5.21				14,799,417			184,457		4.94
Total interest-earning assets		$	17,743,168		$	217,192		4.86			$	18,999,468		$	224,062		4.68			$	19,944,656		$	217,781		4.33
Liabilities
Interest-bearing deposits		$	10,395,116		$	60,915		2.32	%		$	10,542,884		$	62,718		2.36	%		$	11,021,383		$	25,865		0.93	%
Borrowings			942,689			9,488		4.01				1,131,656			11,796		4.15				1,157,258			10,520		3.62
Total interest-bearing liabilities		$	11,337,805		$	70,403		2.46			$	11,674,540		$	74,514		2.53			$	12,178,641		$	36,385		1.19
Noninterest-bearing deposits		$	5,141,585								$	6,001,033								$	6,587,400
Net interest income					$	146,789								$	149,548								$	181,396
Net interest margin (3)								3.28	%								3.12	%								3.61	%
Cost of deposits (4)								1.56									1.50									0.58
Cost of funds (5)								1.69									1.67									0.77
Cost of non-maturity deposits (6)								1.02									0.89									0.31
Ratio of interest-earning assets to interest-bearing liabilities								156.50									162.74									163.77

______________________________
(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 $2.6 million, $2.2 million, and $3.5 million, for the three months ended December 31, 2023, September 30, 2023, and December 31, 2022, 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.

Provision for Credit Losses

For the fourth quarter of 2023, the Company recorded a $1.7 million provision expense, compared to a $3.9 million provision expense for the third quarter of 2023, and a $2.8 million provision expense for the fourth quarter of 2022. The provision for credit losses was impacted by changes to the overall size, composition, and asset quality trends of the loan portfolio, as well as changes in the economic forecasts.

The provision expense for loan losses for the fourth quarter of 2023 was largely attributable to increases associated with economic forecasts, partially offset by the changes in loan composition. The provision recapture for unfunded commitments was attributable to lower unfunded commitments as well as changes in economic forecasts during the quarter.

		Three Months Ended
		December 31,				September 30,			December 31,
(Dollars in thousands)			2023				2023			2022
Provision for Credit Losses
Provision for loan losses		$	8,275			$	2,517		$	3,899
Provision for unfunded commitments			(6,577	)			1,386			(1,013	)
Provision for held-to-maturity securities			(2	)			15			(48	)
Total provision for credit losses		$	1,696			$	3,918		$	2,838

Noninterest Income

Noninterest loss for the fourth quarter of 2023 was $234.2 million, compared to noninterest income of $18.6 million for the third quarter of 2023. The decrease was related to the investment securities portfolio repositioning during the fourth quarter of 2023 whereby the Bank sold $1.26 billion of its AFS securities portfolio for a loss of $254.1 million. Excluding the loss from sales of AFS securities, noninterest income was $19.9 million, an increase of $1.3 million from the third quarter of 2023.

Noninterest income for the fourth quarter of 2023 decreased $254.7 million, compared to the fourth quarter of 2022. The decrease was primarily due to the $254.1 million net loss from sales of investment securities during the fourth quarter of 2023.

		Three Months Ended
		December 31,				September 30,			December 31,
(Dollars in thousands)		2023				2023			2022
Noninterest income
Loan servicing income		$	359			$	533		$	346
Service charges on deposit accounts			2,648				2,673			2,689
Other service fee income			322				280			295
Debit card interchange fee income			844				924			1,048
Earnings on bank owned life insurance			3,678				3,579			3,359
Net (loss) gain from sales of loans			(4	)			45			151
Net (loss) gain from sales of investment securities			(254,065	)			—			—
Trust custodial account fees			9,388				9,356			9,722
Escrow and exchange fees			1,074				938			1,282
Other income			1,562				223			1,605
Total noninterest (loss) income		$	(234,194	)		$	18,551		$	20,497

Noninterest Expense

Noninterest expense totaled $102.8 million for the fourth quarter of 2023, an increase of $585,000 compared to the third quarter of 2023, primarily as a result of the $2.1 million FDIC special assessment. Excluding the special assessment, noninterest expense decreased $1.5 million from the prior quarter primarily due to a $2.2 million decrease in compensation and benefits, partially offset by a $341,000 increase in deposit expense.

Noninterest expense increased by $3.6 million compared to the fourth quarter of 2022 primarily due to a $4.4 million increase in deposit expense, driven by higher deposit earnings credit rates, and a $2.8 million increase in FDIC insurance premiums, partially offset by a $2.4 million decrease in compensation and benefits, a $512,000 decrease in legal and professional services, and a $458,000 decrease in premises and occupancy.

		Three Months Ended
		December 31,			September 30,				December 31,
(Dollars in thousands)		2023			2023				2022
Noninterest expense
Compensation and benefits		$	51,907		$	54,068			$	54,347
Premises and occupancy			11,183			11,382				11,641
Data processing			7,409			7,517				6,991
Other real estate owned operations, net			103			(4	)			—
FDIC insurance premiums			4,267			2,324				1,463
Legal and professional services			4,663			4,243				5,175
Marketing expense			1,728			1,635				1,985
Office expense			1,367			1,079				1,310
Loan expense			437			476				743
Deposit expense			11,152			10,811				6,770
Amortization of intangible assets			3,022			3,055				3,440
Other expense			5,532			5,599				5,317
Total noninterest expense		$	102,770		$	102,185			$	99,182

Income Tax

For the fourth quarter of 2023, our income tax benefit totaled $56.5 million, resulting in an effective tax rate of 29.4%, compared to income tax expense of $16.0 million and an effective tax rate of 25.8% for the third quarter of 2023, and income tax expense of $26.2 million and an effective tax rate of 26.2% for the fourth quarter of 2022. The income tax benefit was primarily attributable to the pretax loss recorded for the fourth quarter, driven by the balance sheet repositioning related to the Bank’s investment securities portfolio.

For the full year 2023, our income tax expense totaled $3.2 million, resulting in an effective tax rate of 9.4%, compared to income tax expense of $100.6 million and an effective tax rate of 26.18% for the full year 2022. The decrease in effective tax rate was primarily attributable to the decrease in pretax income.

BALANCE SHEET HIGHLIGHTS

Loans

Loans held for investment totaled $13.29 billion at December 31, 2023, an increase of $18.9 million, or 0.1%, from September 30, 2023, and a decrease of $1.39 billion, or (9.5)%, from December 31, 2022. The increase from September 30, 2023 was driven primarily by increased net draws on existing lines of credits, partially offset by higher loan prepayments and maturities.

During the fourth quarter of 2023, new loan commitments totaled $128.1 million, and new loan fundings totaled $103.7 million, compared with $67.8 million in loan commitments and $25.6 million in new loan fundings for the third quarter of 2023, and $239.8 million in loan commitments and $149.1 million in new loan fundings for the fourth quarter of 2022.

At December 31, 2023, the total loan-to-deposit ratio was 88.6%, compared with 82.9% and 84.6% at September 30, 2023 and December 31, 2022, 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
		December 31,				September 30,				December 31,
(Dollars in thousands)			2023				2023				2022
Beginning loan balance		$	13,319,591			$	13,665,596			$	14,979,098
New commitments			128,102				67,811				239,829
Unfunded new commitments			(24,429	)			(42,185	)			(90,758	)
Net new fundings			103,673				25,626				149,071
Amortization/maturities/payoffs			(422,607	)			(370,044	)			(481,120	)
Net draws on existing lines of credit			354,711				7,180				107,560
Loan sales			(32,464	)			(1,206	)			(9,471	)
Charge-offs			(4,138	)			(7,561	)			(4,271	)
Transferred to other real estate owned			(195	)			—				—
Net decrease			(1,020	)			(346,005	)			(238,231	)
Ending gross loan balance before basis adjustment			13,318,571				13,319,591				14,740,867
Basis adjustment associated with fair value hedge (1)			(29,551	)			(48,830	)			(61,926	)
Ending gross loan balance		$	13,289,020			$	13,270,761			$	14,678,941

______________________________
(1)		Represents the basis adjustment associated with the application of hedge accounting on certain loans.

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

		December 31,				September 30,				December 31,
(Dollars in thousands)			2023				2023				2022
Investor loans secured by real estate
Commercial real estate (“CRE”) non-owner-occupied		$	2,421,772			$	2,514,056			$	2,660,321
Multifamily			5,645,310				5,719,210				6,112,026
Construction and land			472,544				444,576				399,034
SBA secured by real estate (1)			36,400				37,754				42,135
Total investor loans secured by real estate			8,576,026				8,715,596				9,213,516
Business loans secured by real estate (2)
CRE owner-occupied			2,191,334				2,228,802				2,432,163
Franchise real estate secured			304,514				313,451				378,057
SBA secured by real estate (3)			50,741				53,668				61,368
Total business loans secured by real estate			2,546,589				2,595,921				2,871,588
Commercial loans (4)
Commercial and industrial			1,790,608				1,588,771				2,160,948
Franchise non-real estate secured			319,721				335,053				404,791
SBA non-real estate secured			10,926				10,667				11,100
Total commercial loans			2,121,255				1,934,491				2,576,839
Retail loans
Single family residential (5)			72,752				70,984				72,997
Consumer			1,949				1,958				3,284
Total retail loans			74,701				72,942				76,281
Loans held for investment before basis adjustment (6)			13,318,571				13,318,950				14,738,224
Basis adjustment associated with fair value hedge (7)			(29,551	)			(48,830	)			(61,926	)
Loans held for investment			13,289,020				13,270,120				14,676,298
Allowance for credit losses for loans held for investment			(192,471	)			(188,098	)			(195,651	)
Loans held for investment, net		$	13,096,549			$	13,082,022			$	14,480,647
Total unfunded loan commitments		$	1,703,470			$	2,110,565			$	2,489,203
Loans held for sale, at lower of cost or fair value		$	—			$	641			$	2,643

______________________________
(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 (fees) costs of $(74,000), $451,000, and $(1.9) million, and unaccreted fair value net purchase discounts of $43.3 million, $46.2 million, and $54.8 million as of December 31, 2023, September 30, 2023, and December 31, 2022, 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 December 31, 2023 was 4.87%, compared with 4.76% at September 30, 2023 and 4.61% at December 31, 2022. The quarter-over-quarter and year-over-year increases reflect higher rates on new loan originations and the repricing of loans as a result of the increases in benchmark interest rates.

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

		Three Months Ended
		December 31,			September 30,			December 31,
(Dollars in thousands)		2023			2023			2022
Investor loans secured by real estate
CRE non-owner-occupied		$	1,450		$	2,900		$	34,258
Multifamily			94,462			3,687			28,285
Construction and land			—			17,400			31,175
Total investor loans secured by real estate			95,912			23,987			93,718
Business loans secured by real estate (1)
CRE owner-occupied			3,870			—			24,266
Franchise real estate secured			—			—			840
SBA secured by real estate (2)			—			—			4,198
Total business loans secured by real estate			3,870			—			29,304
Commercial loans (3)
Commercial and industrial			24,766			40,399			96,566
Franchise non-real estate secured			—			—			14,130
SBA non-real estate secured			—			406			1,058
Total commercial loans			24,766			40,805			111,754
Retail loans
Single family residential (4)			3,554			3,019			5,053
Total retail loans			3,554			3,019			5,053
Total loan commitments		$	128,102		$	67,811		$	239,829

______________________________
(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 was 6.34% in the fourth quarter of 2023, compared to 8.01% in the third quarter of 2023, and 6.34% in the fourth quarter of 2022.

Asset Quality and Allowance for Credit Losses

At December 31, 2023, our allowance for credit losses (“ACL”) on loans held for investment was $192.5 million, an increase of $4.4 million from September 30, 2023, and a decrease of $3.2 million from December 31, 2022. The change in ACL from September 30, 2023 was largely impacted by changes in economic forecasts and, to a lesser extent, loan composition.

During the fourth quarter of 2023, the Company incurred $3.9 million of net charge-offs, compared with $6.8 million of net charge-offs during the third quarter of 2023, and $3.8 million of net charge-offs during the fourth quarter of 2022, respectively.

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:

		Three Months Ended December 31, 2023
(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		$	31,583		$	(815	)		$	93		$	169			$	31,030
Multifamily			55,221			(1,582	)			—			2,673				56,312
Construction and land			8,506			—				—			808				9,314
SBA secured by real estate (1)			2,199			—				—			(17	)			2,182
Business loans secured by real estate (2)
CRE owner-occupied			29,086			—				4			(303	)			28,787
Franchise real estate secured			7,566			—				—			(67	)			7,499
SBA secured by real estate (3)			4,562			—				40			(175	)			4,427
Commercial loans (4)
Commercial and industrial			32,497			(1,740	)			96			5,839				36,692
Franchise non-real estate secured			15,779			—				—			(648	)			15,131
SBA non-real estate secured			472			—				3			(17	)			458
Retail loans
Single family residential (5)			491			—				—			14				505
Consumer loans			136			(1	)			—			(1	)			134
Totals		$	188,098		$	(4,138	)		$	236		$	8,275			$	192,471

______________________________
(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 December 31, 2023 increased to 1.45%, compared to 1.42% at September 30, 2023 and 1.33% at December 31, 2022. The fair value net discount on loans acquired through bank acquisitions was $43.3 million, or 0.33% of total loans held for investment, as of December 31, 2023, compared to $46.2 million, or 0.35% of total loans held for investment, as of September 30, 2023, and $54.8 million, or 0.37% of total loans held for investment, as of December 31, 2022.

Nonperforming assets declined slightly to $25.1 million, or 0.13% of total assets, at December 31, 2023, compared with $25.9 million, or 0.13% of total assets, at September 30, 2023 and $30.9 million, or 0.14% of total assets, at December 31, 2022. Loan delinquencies were $10.1 million, or 0.08% of loans held for investment, at December 31, 2023, compared to $10.9 million, or 0.08% of loans held for investment, at September 30, 2023, and $43.3 million, or 0.30% of loans held for investment, at December 31, 2022.

Classified loans totaled $142.0 million, or 1.07% of loans held for investment, at December 31, 2023, compared with $149.3 million, or 1.12% of loans held for investment, at September 30, 2023, and $149.3 million, or 1.02% of loans held for investment, at December 31, 2022.

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

		December 31,				September 30,				December 31,
(Dollars in thousands)			2023				2023				2022
Asset Quality
Nonperforming loans		$	24,817			$	25,458			$	30,905
Other real estate owned			248				450				—
Nonperforming assets		$	25,065			$	25,908			$	30,905
Total classified assets (1)		$	142,210			$	149,708			$	149,304
Allowance for credit losses			192,471				188,098				195,651
Allowance for credit losses as a percent of total nonperforming loans			776	%			739	%			633	%
Nonperforming loans as a percent of loans held for investment			0.19				0.19				0.21
Nonperforming assets as a percent of total assets			0.13				0.13				0.14
Classified loans to total loans held for investment			1.07				1.12				1.02
Classified assets to total assets			0.75				0.74				0.69
Net loan charge-offs (recoveries) for the quarter ended		$	3,902			$	6,752			$	3,797
Net loan charge-offs (recoveries) for the quarter to average total loans			0.03	%			0.05	%			0.03	%
Allowance for credit losses to loans held for investment (2)			1.45				1.42				1.33
Delinquent Loans:
30 - 59 days		$	2,484			$	2,967			$	20,538
60 - 89 days			1,294				475				185
90+ days			6,276				7,484				22,625
Total delinquency		$	10,054			$	10,926			$	43,348
Delinquency as a percent of loans held for investment			0.08	%			0.08	%			0.30	%

______________________________
(1)		Includes substandard and doubtful loans and other real estate owned.
(2)		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 December 31, 2022, 26% of loans held for investment include a fair value net discount of $54.8 million, or 0.37% of loans held for investment.

Investment Securities

At December 31, 2023, AFS and held-to-maturity ("HTM") investment securities were $1.14 billion and $1.73 billion, respectively, compared to $1.91 billion and $1.74 billion, respectively, at September 30, 2023, and $2.60 billion and $1.39 billion, respectively, at December 31, 2022.

In total, investment securities were $2.87 billion at December 31, 2023, a decrease of $782.9 million from $3.65 billion at September 30, 2023 and a decrease of $1.12 billion from $3.99 billion at December 31, 2022. The decrease in the fourth quarter of 2023 compared to the prior quarter was primarily attributable to sales of $1.26 billion of AFS securities, as well as principal payments, amortization, and redemptions of $64.3 million, partially offset by purchases of $539.1 million, predominantly short-term U.S. Treasury securities.

The decrease in investment securities from December 31, 2022 was primarily attributable to sales of $1.57 billion of AFS securities, as well as principal payments, amortization, and redemptions of $349.5 million, partially offset by purchases of $784.9 million.

Deposits

At December 31, 2023, total deposits were $15.00 billion, a decrease of $1.01 billion, or 6.3%, from September 30, 2023, and a decrease of $2.36 billion, or 13.6%, from December 31, 2022. The decrease from the prior quarter included the reduction of $617.0 million in brokered certificates of deposit. The remainder of the deposit decrease from the prior quarter of $394.8 million was driven by a decrease of $849.5 million in noninterest-bearing deposits, partially offset by increases of $301.2 million in interest-bearing checking and $158.6 million in retail certificates of deposit.

At December 31, 2023, non-maturity deposits⁽¹⁾ totaled $12.70 billion, or 84.7% of total deposits, a decrease of $553.5 million, or 4.2%, from September 30, 2023, and a decrease of $2.15 billion, or 14.5%, from December 31, 2022. The decrease compared to the prior quarter was partially attributable to seasonal outflows for client tax payments. Additionally, the linked-quarter and year-ago quarter decreases were impacted by clients redeploying funds into higher yielding alternatives, prepaying or paying down loans, and shifting depositor behavior following the industry-wide turmoil experienced in the first half of 2023.

At December 31, 2023, maturity deposits totaled $2.29 billion, a decrease of $458.4 million, or 16.6%, from September 30, 2023, and a decrease of $208.4 million, or 8.3%, from December 31, 2022. The decrease in the fourth quarter of 2023 compared to the prior quarter was primarily due to the reduction of $617.0 million in brokered certificates of deposit, partially offset by an increase of $158.6 million in retail certificates of deposit.

The weighted average cost of total deposits for the fourth quarter of 2023 was 1.56%, compared with 1.50% for the third quarter of 2023 and 0.58% for the fourth quarter of 2022. The increases in the weighted average cost of deposits for the fourth quarter of 2023 compared to the third quarter of 2023 and fourth quarter of 2022 were principally driven by higher pricing across most deposit categories. The weighted average cost of non-maturity deposits⁽¹⁾ for the fourth quarter of 2023 was 1.02%, compared to 0.89% for the third quarter of 2023, and 0.31% for the fourth quarter of 2022.

At December 31, 2023, the end-of-period weighted average rate of total deposits was 1.55%, compared to 1.52% at September 30, 2023 and 0.79% at December 31, 2022. At December 31, 2023, the end-of-period weighted average rate of non-maturity deposits was 1.04%, compared to 0.96% at September 30, 2023 and 0.43% at December 31, 2022.

At December 31, 2023, the Company’s FDIC-insured deposits as a percentage of total deposits was 60%. Insured and collateralized deposits comprised 66% of total deposits at December 31, 2023, which includes federally-insured deposits, $732.6 million of collateralized municipal and tribal deposits, and $70.0 million of privately insured deposits.

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

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

		December 31,				September 30,				December 31,
(Dollars in thousands)			2023				2023				2022
Deposit Accounts
Noninterest-bearing checking		$	4,932,817			$	5,782,305			$	6,306,825
Interest-bearing:
Checking			2,899,621				2,598,449				3,119,850
Money market/savings			4,868,442				4,873,582				5,422,607
Total non-maturity deposits (1)			12,700,880				13,254,336				14,849,282
Retail certificates of deposit			1,684,560				1,525,919				1,086,423
Wholesale/brokered certificates of deposit			610,186				1,227,192				1,416,696
Total non-core deposits			2,294,746				2,753,111				2,503,119
Total deposits		$	14,995,626			$	16,007,447			$	17,352,401
Cost of deposits			1.56	%			1.50	%			0.58	%
Cost of non-maturity deposits (1)			1.02				0.89				0.31
Noninterest-bearing deposits as a percent of total deposits			32.9				36.1				36.3
Non-maturity deposits (1) as a percent of total deposits			84.7				82.8				85.6

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

Borrowings

At December 31, 2023, total borrowings amounted to $931.8 million, a decrease of $199.8 million from September 30, 2023 and a decrease of $399.4 million from December 31, 2022. Total borrowings at December 31, 2023 included $600.0 million of FHLB term advances and $331.8 million of subordinated debt. The decrease in borrowings at December 31, 2023 as compared to September 30, 2023 was primarily due to an early redemption of a $200.0 million in FHLB term advance during the fourth quarter of 2023. The decrease in borrowings at December 31, 2023 as compared to December 31, 2022 was primarily due to a decrease of $400.0 million in FHLB term advances.

As of December 31, 2023, our unused borrowing capacity was $8.68 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 and the Bank Term Funding Program, neither of which were utilized during the fourth quarter of 2023.

Capital Ratios

At December 31, 2023, our common stockholder's equity was $2.88 billion, or 15.15% of total assets, compared with $2.86 billion, or 14.08% of total assets, at September 30, 2023, and $2.80 billion, or 12.90% of total assets, at December 31, 2022, with a book value per share of $30.07, compared with $29.78 at September 30, 2023 and $29.45 at December 31, 2022. At December 31, 2023, the ratio of tangible common equity to total assets⁽¹⁾ was 10.72%, compared with 9.87% at September 30, 2023 and 8.88% at December 31, 2022, and tangible book value per share⁽¹⁾ was $20.22, compared with $19.89 at September 30, 2023 and $19.38 at December 31, 2022. The increase in tangible book value per share at December 31, 2023 from September 30, 2023 was primarily driven by other comprehensive income from the realized loss, net of tax, resulting from the sale of AFS securities in the fourth quarter of 2023, partially offset by the net loss and the dividends paid during the quarter. The increase in tangible book value per share at December 31, 2023 from December 31, 2022 was primarily driven by other comprehensive income and, to the lesser extent, net income, partially offset by the dividends paid in 2023.

The Company implemented the 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 December 31, 2023, 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.

The following table presents capital ratios and share data as of the dates indicated:

		December 31,				September 30,				December 31,
Capital Ratios			2023				2023				2022
Pacific Premier Bancorp, Inc. Consolidated
Tier 1 leverage ratio			11.03	%			11.13	%			10.29	%
Common equity tier 1 risk-based capital ratio			14.32				14.87				12.99
Tier 1 risk-based capital ratio			14.32				14.87				12.99
Total risk-based capital ratio			17.29				17.74				15.53
Tangible common equity ratio (1)			10.72				9.87				8.88
Pacific Premier Bank
Tier 1 leverage ratio			12.43	%			12.42	%			11.80	%
Common equity tier 1 risk-based capital ratio			16.13				16.59				14.89
Tier 1 risk-based capital ratio			16.13				16.59				14.89
Total risk-based capital ratio			17.23				17.66				15.74
Share Data
Book value per share		$	30.07			$	29.78			$	29.45
Tangible book value per share (1)			20.22				19.89				19.38
Common equity dividends declared per share			0.33				0.33				0.33
Closing stock price (2)			29.11				21.76				31.56
Shares issued and outstanding			95,860,092				95,900,847				95,021,760
Market Capitalization (2)(3)		$	2,790,487			$	2,086,802			$	2,998,887

______________________________
(1)		A reconciliation of the non-GAAP measures of tangible common equity and tangible book value per share to the GAAP measures of common stockholders' equity and book value per share is 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 January 27, 2024, the Company's Board of Directors declared a $0.33 per share dividend, payable on February 16, 2024 to stockholders of record on February 9, 2024. In January 2021, the Company’s Board of Directors approved a stock repurchase program, which authorized the repurchase up to 4,725,000 shares of its common stock. During the fourth quarter of 2023, the Company did not repurchase any shares of common stock.

Conference Call and Webcast

The Company will host a conference call at 9:00 a.m. PT / 12:00 p.m. ET on January 29, 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 [phone]. Participants should ask to be joined into the Pacific Premier Bancorp, Inc. call. Additionally, a telephone replay will be made available through February 5, 2024 at [phone], access code 7917033.

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, 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 close to 35,000 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. 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 transition away from USD LIBOR and related uncertainty as well as the risk and costs related to our adoption of Secured Overnight Financing Rate (“SOFR”); 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 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 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 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, including with respect to COVID-19, 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 incidents, and related potential costs and risks, including reputation, financial and litigation risks; 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 2022 Annual Report on Form 10-K and subsequent Reports on Form 10-Q 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.

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
		December 31,				September 30,				June 30,				March 31,				December 31,
(Dollars in thousands)			2023				2023				2023				2023				2022
ASSETS
Cash and cash equivalents		$	936,473			$	1,400,276			$	1,463,677			$	1,424,896			$	1,101,249
Interest-bearing time deposits with financial institutions			995				1,242				1,487				1,734				1,734
Investments held-to-maturity, at amortized cost, net of allowance for credit losses			1,729,541				1,737,866				1,737,604				1,749,030				1,388,103
Investment securities available for sale, at fair value			1,140,071				1,914,599				2,011,791				2,112,852				2,601,013
FHLB, FRB, and other stock			99,225				105,505				105,369				105,479				119,918
Loans held for sale, at lower of amortized cost or fair value			—				641				2,184				1,247				2,643
Loans held for investment			13,289,020				13,270,120				13,610,282				14,171,784				14,676,298
Allowance for credit losses			(192,471	)			(188,098	)			(192,333	)			(195,388	)			(195,651	)
Loans held for investment, net			13,096,549				13,082,022				13,417,949				13,976,396				14,480,647
Accrued interest receivable			68,516				68,131				70,093				69,660				73,784
Other real estate owned			248				450				270				5,499				—
Premises and equipment, net			56,676				59,396				61,527				63,450				64,543
Deferred income taxes, net			113,580				192,208				184,857				177,778				183,602
Bank owned life insurance			471,178				468,191				465,288				462,732				460,010
Intangible assets			43,285				46,307				49,362				52,417				55,588
Goodwill			901,312				901,312				901,312				901,312				901,312
Other assets			368,996				297,574				275,113				257,082				253,871
Total assets		$	19,026,645			$	20,275,720			$	20,747,883			$	21,361,564			$	21,688,017
LIABILITIES
Deposit accounts:
Noninterest-bearing checking		$	4,932,817			$	5,782,305			$	5,895,975			$	6,209,104			$	6,306,825
Interest-bearing:
Checking			2,899,621				2,598,449				2,759,855				2,871,812				3,119,850
Money market/savings			4,868,442				4,873,582				4,801,288				5,128,857				5,422,607
Retail certificates of deposit			1,684,560				1,525,919				1,366,071				1,257,146				1,086,423
Wholesale/brokered certificates of deposit			610,186				1,227,192				1,716,686				1,740,891				1,416,696
Total interest-bearing			10,062,809				10,225,142				10,643,900				10,998,706				11,045,576
Total deposits			14,995,626				16,007,447				16,539,875				17,207,810				17,352,401
FHLB advances and other borrowings			600,000				800,000				800,000				800,000				1,000,000
Subordinated debentures			331,842				331,682				331,523				331,364				331,204
Accrued expenses and other liabilities			216,596				281,057				227,351				191,229				206,023
Total liabilities			16,144,064				17,420,186				17,898,749				18,530,403				18,889,628
STOCKHOLDERS’ EQUITY
Common stock			938				937				937				937				933
Additional paid-in capital			2,377,131				2,371,941				2,366,639				2,361,830				2,362,663
Retained earnings			604,137				771,285				757,025				731,123				700,040
Accumulated other comprehensive loss			(99,625	)			(288,629	)			(275,467	)			(262,729	)			(265,247	)
Total stockholders' equity			2,882,581				2,855,534				2,849,134				2,831,161				2,798,389
Total liabilities and stockholders' equity		$	19,026,645			$	20,275,720			$	20,747,883			$	21,361,564			$	21,688,017

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
		Three Months Ended											Year Ended
		December 31,				September 30,				December 31,			December 31,				December 31,
(Dollars in thousands, except per share data)		2023				2023				2022			2023				2022
INTEREST INCOME
Loans		$	176,773			$	177,032			$	184,457		$	717,615			$	673,720
Investment securities and other interest-earning assets			40,419				47,030				33,324			170,370				94,858
Total interest income			217,192				224,062				217,781			887,985				768,578
INTEREST EXPENSE
Deposits			60,915				62,718				25,865			217,447				40,093
FHLB advances and other borrowings			4,927				7,235				5,960			27,255				13,131
Subordinated debentures			4,561				4,561				4,560			18,244				18,242
Total interest expense			70,403				74,514				36,385			262,946				71,466
Net interest income before provision for credit losses			146,789				149,548				181,396			625,039				697,112
Provision for credit losses			1,696				3,918				2,838			10,129				4,832
Net interest income after provision for credit losses			145,093				145,630				178,558			614,910				692,280
NONINTEREST INCOME
Loan servicing income			359				533				346			1,958				1,664
Service charges on deposit accounts			2,648				2,673				2,689			10,620				10,698
Other service fee income			322				280				295			1,213				1,351
Debit card interchange fee income			844				924				1,048			3,485				3,628
Earnings on bank owned life insurance			3,678				3,579				3,359			14,118				13,159
Net (loss) gain from sales of loans			(4	)			45				151			415				3,238
Net (loss) gain from sales of investment securities			(254,065	)			—				—			(253,927	)			1,710
Trust custodial account fees			9,388				9,356				9,722			39,129				41,606
Escrow and exchange fees			1,074				938				1,282			3,994				6,325
Other income			1,562				223				1,605			5,077				5,369
Total noninterest (loss) income			(234,194	)			18,551				20,497			(173,918	)			88,748
NONINTEREST EXPENSE
Compensation and benefits			51,907				54,068				54,347			213,692				225,245
Premises and occupancy			11,183				11,382				11,641			45,922				47,433
Data processing			7,409				7,517				6,991			29,679				26,649
Other real estate owned operations, net			103				(4	)			—			215				—
FDIC insurance premiums			4,267				2,324				1,463			11,373				5,772
Legal and professional services			4,663				4,243				5,175			19,123				17,947
Marketing expense			1,728				1,635				1,985			7,080				7,632
Office expense			1,367				1,079				1,310			4,958				5,103
Loan expense			437				476				743			2,126				3,810
Deposit expense			11,152				10,811				6,770			39,593				19,448
Amortization of intangible assets			3,022				3,055				3,440			12,303				13,983
Other expense			5,532				5,599				5,317			20,887				23,648
Total noninterest expense			102,770				102,185				99,182			406,951				396,670
Net (loss) income before income taxes			(191,871	)			61,996				99,873			34,041				384,358
Income tax (benefit) expense			(56,495	)			15,966				26,200			3,189				100,615
Net (loss) income		$	(135,376	)		$	46,030			$	73,673		$	30,852			$	283,743
(LOSS) EARNINGS PER SHARE
Basic		$	(1.44	)		$	0.48			$	0.78		$	0.31			$	2.99
Diluted			(1.44	)			0.48				0.77			0.31				2.98
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic			94,233,813				94,189,844				93,810,468			94,113,132				93,718,293
Diluted			94,233,813				94,283,008				94,176,633			94,236,875				94,091,461

SELECTED FINANCIAL DATA

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCES AND YIELD DATA
(Unaudited)
		Three Months Ended
		December 31, 2023									September 30, 2023									December 31, 2022
(Dollars in thousands)		Average Balance			Interest			Average Yield/ Cost			Average Balance			Interest			Average Yield/ Cost			Average Balance			Interest			Average Yield/ Cost
Assets
Interest-earning assets:
Cash and cash equivalents		$	1,281,793		$	15,744		4.87	%		$	1,695,508		$	21,196		4.96	%		$	1,015,197		$	8,636		3.37	%
Investment securities			3,203,608			24,675		3.08				3,828,766			25,834		2.70				4,130,042			24,688		2.39
Loans receivable, net (1) (2)			13,257,767			176,773		5.29				13,475,194			177,032		5.21				14,799,417			184,457		4.94
Total interest-earning assets			17,743,168			217,192		4.86				18,999,468			224,062		4.68				19,944,656			217,781		4.33
Noninterest-earning assets			1,881,777									1,806,319									1,784,277
Total assets		$	19,624,945								$	20,805,787								$	21,728,933
Liabilities and Equity
Interest-bearing deposits:
Interest checking		$	3,037,642		$	11,170		1.46	%		$	2,649,203		$	10,849		1.62	%		$	3,320,146		$	3,752		0.45	%
Money market			4,525,403			22,038		1.93				4,512,740			19,182		1.69				4,998,726			7,897		0.63
Savings			308,968			190		0.24				329,684			115		0.14				443,016			310		0.28
Retail certificates of deposit			1,604,507			16,758		4.14				1,439,531			13,398		3.69				975,958			3,941		1.60
Wholesale/brokered certificates of deposit			918,596			10,759		4.65				1,611,726			19,174		4.72				1,283,537			9,965		3.08
Total interest-bearing deposits			10,395,116			60,915		2.32				10,542,884			62,718		2.36				11,021,383			25,865		0.93
FHLB advances and other borrowings			610,913			4,927		3.20				800,049			7,235		3.59				826,125			5,960		2.86
Subordinated debentures			331,776			4,561		5.50				331,607			4,561		5.50				331,133			4,560		5.51
Total borrowings			942,689			9,488		4.01				1,131,656			11,796		4.15				1,157,258			10,520		3.62
Total interest-bearing liabilities			11,337,805			70,403		2.46				11,674,540			74,514		2.53				12,178,641			36,385		1.19
Noninterest-bearing deposits			5,141,585									6,001,033									6,587,400
Other liabilities			296,604									268,249									211,731
Total liabilities			16,775,994									17,943,822									18,977,772
Stockholders' equity			2,848,951									2,861,965									2,751,161
Total liabilities and equity		$	19,624,945								$	20,805,787								$	21,728,933
Net interest income					$	146,789								$	149,548								$	181,396
Net interest margin (3)								3.28	%								3.12	%								3.61	%
Cost of deposits (4)								1.56									1.50									0.58
Cost of funds (5)								1.69									1.67									0.77
Cost of non-maturity deposits (6)								1.02									0.89									0.31
Ratio of interest-earning assets to interest-bearing liabilities								156.50									162.74									163.77

		Year Ended December 31,
		2023									2022
(Dollars in thousands)		Average Balance			Interest			Average Yield/Cost			Average Balance			Interest			Average Yield/Cost
Assets
Interest-earning assets:
Cash and cash equivalents		$	1,437,074		$	67,134		4.67	%		$	678,270		$	12,691		1.87	%
Investment securities			3,778,650			103,236		2.73				4,301,005			82,167		1.91
Loans receivable, net (1)(2)			13,759,815			717,615		5.22				14,767,554			673,720		4.56
Total interest-earning assets			18,975,539			887,985		4.68				19,746,829			768,578		3.89
Noninterest-earning assets			1,812,254									1,766,599
Total assets		$	20,787,793								$	21,513,428
Liabilities and Equity
Interest-bearing deposits:
Interest checking		$	3,152,823		$	36,520		1.16	%		$	3,681,244		$	6,351		0.17	%
Money market			4,667,007			69,917		1.50				5,155,785			12,735		0.25
Savings			360,546			915		0.25				433,156			391		0.09
Retail certificates of deposit			1,385,531			48,237		3.48				944,963			6,498		0.69
Wholesale/brokered certificates of deposit			1,434,563			61,858		4.31				520,652			14,118		2.71
Total interest-bearing deposits			11,000,470			217,447		1.98				10,735,800			40,093		0.37
FHLB advances and other borrowings			798,667			27,255		3.41				574,320			13,131		2.29
Subordinated debentures			331,534			18,244		5.50				330,885			18,242		5.51
Total borrowings			1,130,201			45,499		4.03				905,205			31,373		3.47
Total interest-bearing liabilities			12,130,671			262,946		2.17				11,641,005			71,466		0.61
Noninterest-bearing deposits			5,564,887									6,859,141
Other liabilities			247,946									224,739
Total liabilities			17,943,504									18,724,885
Stockholders’ equity			2,844,289									2,788,543
Total liabilities and equity		$	20,787,793								$	21,513,428
Net interest income					$	625,039								$	697,112
Net interest rate spread								2.51	%								3.28	%
Net interest margin (3)								3.29									3.53
Cost of deposits (4)								1.31									0.23
Cost of funds (5)								1.49									0.39
Cost of non-maturity deposits (6)								0.78									0.12
Ratio of interest-earning assets to interest-bearing liabilities								156.43									169.63

______________________________
(1)		Average balance includes loans held for sale and nonperforming loans and is net of deferred loan origination fees/costs and discounts/premiums, and the basis adjustments of certain loans included in fair value hedging relationships.
(2)		Interest income includes net discount accretion of $2.6 million, $2.2 million, and $3.5 million, for the three months ended December 31, 2023, September 30, 2023, and December 31, 2022, respectively, and $10.2 million and $21.7 million, respectively, for the years ended December 31, 2023 and December 31, 2022, respectively.
(3)		Represents 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.

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
LOAN PORTFOLIO COMPOSITION
(Unaudited)
		December 31,				September 30,				June 30,				March 31,				December 31,
(Dollars in thousands)			2023				2023				2023				2023				2022
Investor loans secured by real estate
CRE non-owner-occupied		$	2,421,772			$	2,514,056			$	2,571,246			$	2,590,824			$	2,660,321
Multifamily			5,645,310				5,719,210				5,788,030				5,955,239				6,112,026
Construction and land			472,544				444,576				428,287				420,079				399,034
SBA secured by real estate (1)			36,400				37,754				38,876				40,669				42,135
Total investor loans secured by real estate			8,576,026				8,715,596				8,826,439				9,006,811				9,213,516
Business loans secured by real estate (2)
CRE owner-occupied			2,191,334				2,228,802				2,281,721				2,342,175				2,432,163
Franchise real estate secured			304,514				313,451				318,539				371,902				378,057
SBA secured by real estate (3)			50,741				53,668				57,084				60,527				61,368
Total business loans secured by real estate			2,546,589				2,595,921				2,657,344				2,774,604				2,871,588
Commercial loans (4)
Commercial and industrial			1,790,608				1,588,771				1,744,763				1,967,128				2,160,948
Franchise non-real estate secured			319,721				335,053				351,944				388,722				404,791
SBA non-real estate secured			10,926				10,667				9,688				10,437				11,100
Total commercial loans			2,121,255				1,934,491				2,106,395				2,366,287				2,576,839
Retail loans
Single family residential (5)			72,752				70,984				70,993				70,913				72,997
Consumer			1,949				1,958				2,241				3,174				3,284
Total retail loans			74,701				72,942				73,234				74,087				76,281
Loans held for investment before basis adjustment (6)			13,318,571				13,318,950				13,663,412				14,221,789				14,738,224
Basis adjustment associated with fair value hedge (7)			(29,551	)			(48,830	)			(53,130	)			(50,005	)			(61,926	)
Loans held for investment			13,289,020				13,270,120				13,610,282				14,171,784				14,676,298
Allowance for credit losses for loans held for investment			(192,471	)			(188,098	)			(192,333	)			(195,388	)			(195,651	)
Loans held for investment, net		$	13,096,549			$	13,082,022			$	13,417,949			$	13,976,396			$	14,480,647
Loans held for sale, at lower of cost or fair value		$	—			$	641			$	2,184			$	1,247			$	2,643

______________________________
(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 $(74,000), $451,000, $142,000, $(745,000), and $(1.9) million, and unaccreted fair value net purchase discounts of $43.3 million, $46.2 million, $48.4 million, $52.2 million, and $54.8 million as of December 31, 2023, September 30, 2023, June 30, 2023, March 31, 2023, and December 31, 2022 respectively.
(7)		Represents the basis adjustment associated with the application of hedge accounting on certain loans.

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
ASSET QUALITY INFORMATION
(Unaudited)
		December 31,				September 30,				June 30,				March 31,				December 31,
(Dollars in thousands)			2023				2023				2023				2023				2022
Asset Quality
Nonperforming loans		$	24,817			$	25,458			$	17,151			$	24,872			$	30,905
Other real estate owned			248				450				270				5,499				—
Nonperforming assets		$	25,065			$	25,908			$	17,421			$	30,371			$	30,905
Total classified assets (1)		$	142,210			$	149,708			$	120,216			$	166,576			$	149,304
Allowance for credit losses			192,471				188,098				192,333				195,388				195,651
Allowance for credit losses as a percent of total nonperforming loans			776	%			739	%			1,121	%			786	%			633	%
Nonperforming loans as a percent of loans held for investment			0.19				0.19				0.13				0.18				0.21
Nonperforming assets as a percent of total assets			0.13				0.13				0.08				0.14				0.14
Classified loans to total loans held for investment			1.07				1.12				0.88				1.14				1.02
Classified assets to total assets			0.75				0.74				0.58				0.78				0.69
Net loan charge-offs (recoveries) for the quarter ended		$	3,902			$	6,752			$	3,665			$	3,284			$	3,797
Net loan charge-offs (recoveries) for the quarter to average total loans			0.03	%			0.05	%			0.03	%			0.02	%			0.03	%
Allowance for credit losses to loans held for investment (2)			1.45				1.42				1.41				1.38				1.33
Delinquent Loans:
30 - 59 days		$	2,484			$	2,967			$	649			$	761			$	20,538
60 - 89 days			1,294				475				31				1,198				185
90+ days			6,276				7,484				30,271				18,884				22,625
Total delinquency		$	10,054			$	10,926			$	30,951			$	20,843			$	43,348
Delinquency as a percent of loans held for investment			0.08	%			0.08	%			0.23	%			0.15	%			0.30	%

______________________________
(1)		Includes substandard loans and other real estate owned.
(2)		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 $52.2 million, or 0.37% of loans held for investment. At December 31, 2022, 26% of loans held for investment include a fair value net discount of $54.8 million, or 0.37% of loans held for investment.

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
December 31, 2023
Investor loans secured by real estate
CRE non-owner-occupied		$	412		$	—		$	—		$	—		$	412		$	412
SBA secured by real estate (2)			1,205			—			—			—			1,205			1,205
Total investor loans secured by real estate			1,617			—			—			—			1,617			1,617
Business loans secured by real estate (3)
CRE owner-occupied			8,666			—			—			—			8,666			8,666
Total business loans secured by real estate			8,666			—			—			—			8,666			8,666
Commercial loans (4)
Commercial and industrial			1,381			—			12,595			—			13,976			13,976
SBA not secured by real estate			558			—			—			—			558			558
Total commercial loans			1,939			—			12,595			—			14,534			14,534
Totals nonaccrual loans		$	12,222		$	—		$	12,595		$	—		$	24,817		$	24,817

______________________________
(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.

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
PAST DUE STATUS
(Unaudited)
					Days Past Due
(Dollars in thousands)		Current			30-59			60-89			90+			Total
December 31, 2023
Investor loans secured by real estate
CRE non-owner-occupied		$	2,421,360		$	—		$	—		$	412		$	2,421,772
Multifamily			5,645,310			—			—			—			5,645,310
Construction and land			472,544			—			—			—			472,544
SBA secured by real estate (1)			35,980			—			—			420			36,400
Total investor loans secured by real estate			8,575,194			—			—			832			8,576,026
Business loans secured by real estate (2)
CRE owner-occupied			2,186,679			—			—			4,655			2,191,334
Franchise real estate secured			304,222			292			—			—			304,514
SBA secured by real estate (3)			50,604			137			—			—			50,741
Total business loans secured by real estate			2,541,505			429			—			4,655			2,546,589
Commercial loans (4)
Commercial and industrial			1,788,855			228			1,294			231			1,790,608
Franchise non-real estate secured			318,162			1,559			—			—			319,721
SBA not secured by real estate			10,119			249			—			558			10,926
Total commercial loans			2,117,136			2,036			1,294			789			2,121,255
Retail loans
Single family residential (5)			72,733			19			—			—			72,752
Consumer loans			1,949			—			—			—			1,949
Total retail loans			74,682			19			—			—			74,701
Loans held for investment before basis adjustment (6)		$	13,308,517		$	2,484		$	1,294		$	6,276		$	13,318,571

______________________________
(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 $29.6 million to the carrying amount of certain loans included in fair value hedging relationships.

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
CREDIT RISK GRADES
(Unaudited)
(Dollars in thousands)		Pass			Special Mention			Substandard			Doubtful			Total Gross Loans
December 31, 2023
Investor loans secured by real estate
CRE non-owner-occupied		$	2,406,719		$	6,966		$	8,087		$	—		$	2,421,772
Multifamily			5,633,682			11,628			—			—			5,645,310
Construction and land			472,544			—			—			—			472,544
SBA secured by real estate (1)			28,271			—			8,129			—			36,400
Total investor loans secured by real estate			8,541,216			18,594			16,216			—			8,576,026
Business loans secured by real estate (2)
CRE owner-occupied			2,117,985			34,480			38,869			—			2,191,334
Franchise real estate secured			288,013			9,674			6,827			—			304,514
SBA secured by real estate (3)			45,586			619			4,536			—			50,741
Total business loans secured by real estate			2,451,584			44,773			50,232			—			2,546,589
Commercial loans (4)
Commercial and industrial			1,651,102			81,250			53,714			4,542			1,790,608
Franchise non-real estate secured			299,189			4,230			16,302			—			319,721
SBA not secured by real estate			9,970			—			956			—			10,926
Total commercial loans			1,960,261			85,480			70,972			4,542			2,121,255
Retail loans
Single family residential (5)			72,752			—			—			—			72,752
Consumer loans			1,949			—			—			—			1,949
Total retail loans			74,701			—			—			—			74,701
Loans held for investment before basis adjustment (6)		$	13,027,762		$	148,847		$	137,420		$	4,542		$	13,318,571

______________________________
(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 $29.6 million to the carrying amount of certain loans included in fair value hedging relationships.

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
GAAP to NON-GAAP RECONCILIATIONS
(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												Year Ended
		December 31,				September 30,				December 31,				December 31,				December 31,
(Dollars in thousands)			2023				2023				2022				2023				2022
Net income		$	(135,376	)		$	46,030			$	73,673			$	30,852			$	283,743
Less: net loss from investment securities repositioning			(254,065	)			—				—				(254,065	)			—
Add: FDIC special assessment			2,080				—				—				2,080				—
Less: tax adjustment (1)			72,387				—				—				72,387				—
Adjusted net income for average assets		$	48,382			$	46,030			$	73,673			$	214,610			$	283,743
Average assets		$	19,624,945			$	20,805,787			$	21,728,933			$	20,787,793			$	21,513,428
Return on average assets (annualized)			(2.76	)%			0.88	%			1.36	%			0.15	%			1.32	%
Adjusted return on average assets (annualized)			0.99	%			0.88	%			1.36	%			1.03	%			1.32	%

______________________________
(1)		Adjusted by statutory tax rate

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												Year Ended
		December 31,				September 30,				December 31,				December 31,				December 31,
(Dollars in thousands)			2023				2023				2022				2023				2022
Net (loss) income		$	(135,376	)		$	46,030			$	73,673			$	30,852			$	283,743
Plus: amortization of intangible assets expense			3,022				3,055				3,440				12,303				13,983
Less: tax adjustment (1)			854				868				978				3,491				3,987
Net (loss) income for average tangible common equity		$	(133,208	)		$	48,217			$	76,135			$	39,664			$	293,739
Less: net loss from investment securities repositioning			(254,065	)			—				—				(254,065	)			—
Add: FDIC special assessment			2,080				—				—				2,080				—
Less: tax adjustment (1)			72,387				—				—				72,387				—
Adjusted net income for average tangible common equity		$	50,550			$	48,217			$	76,135			$	223,422			$	293,739
Average stockholders' equity		$	2,848,951			$	2,861,965			$	2,751,161			$	2,844,289			$	2,788,543
Less: average intangible assets			45,050				48,150				57,624				49,643				62,833
Less: average goodwill			901,312				901,312				901,312				901,312				901,312
Average tangible common equity			1,902,589				1,912,503				1,792,225				1,893,334				1,824,398
Add: average after-tax realized loss from investment securities repositioning			(94,887	)			—				—				(23,917	)			—
Adjusted average tangible common equity		$	1,807,702			$	1,912,503			$	1,792,225			$	1,869,417			$	1,824,398
Return on average equity (annualized)			(19.01	)%			6.43	%			10.71	%			1.08	%			10.18	%
Adjusted return on average equity (annualized)			7.03	%			6.43	%			10.71	%			7.61	%			10.18	%
Return on average tangible common equity (annualized)			(28.01	)%			10.08	%			16.99	%			2.09	%			16.10	%
Adjusted return on average tangible common equity (annualized)			11.19	%			10.08	%			16.99	%			11.95	%			16.10	%

______________________________
(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.
		Three Months Ended												Year Ended
		December 31,				September 30,				December 31,				December 31,				December 31,
(Dollars in thousands, except per share data)			2023				2023				2022				2023				2022
Basic
Net (loss) income		$	(135,376	)		$	46,030			$	73,673			$	30,852			$	283,743
Less: dividends and undistributed earnings allocated to participating securities			(560	)			(823	)			(940	)			(2,061	)			(3,405	)
Net (loss) income allocated to common stockholders			(135,936	)			45,207				72,733				28,791				280,338
Less: net loss from investment securities repositioning			(254,065	)			—				—				(254,065	)			—
Add: FDIC special assessment			2,080				—				—				2,080				—
Less: tax adjustment (1)			72,387				—				—				72,387				—
Adjusted net income allocated to common stockholders		$	47,822			$	45,207			$	72,733			$	212,549			$	280,338
Weighted average common shares outstanding			94,233,813				94,189,844				93,810,468				94,113,132				93,718,293
Basic earnings per common share		$	(1.44	)		$	0.48			$	0.78			$	0.31			$	2.99
Adjusted basic earnings per common share		$	0.51			$	0.48			$	0.78			$	2.26			$	2.99
Diluted
Net (loss) income allocated to common stockholders		$	(135,936	)		$	45,207			$	72,733			$	28,791			$	280,338
Less: net loss from investment securities repositioning			(254,065	)			—				—				(254,065	)			—
Add: FDIC special assessment			2,080				—				—				2,080				—
Less: tax adjustment (1)			72,387				—				—				72,387				—
Adjusted net income allocated to common stockholders		$	47,822			$	45,207			$	72,733			$	212,549			$	280,338
Weighted average common shares outstanding			94,233,813				94,189,844				93,810,468				94,113,132				93,718,293
Dilutive effect of share-based compensation			—				93,164				366,165				123,743				373,168
Weighted average diluted common shares			94,233,813				94,283,008				94,176,633				94,236,875				94,091,461
Dilutive effect of share-based compensation			101,065				—				—				—				—
Adjusted weighted average diluted common shares			94,334,878				94,283,008				94,176,633				94,236,875				94,091,461
Diluted earnings per common share		$	(1.44	)		$	0.48			$	0.77			$	0.31			$	2.98
Adjusted diluted earnings per common share		$	0.51			$	0.48			$	0.77			$	2.26			$	2.98

______________________________
(1)		Adjusted by statutory tax rate

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.
		Three Months Ended												Year Ended
		December 31,				September 30,				December 31,				December 31,				December 31,
(Dollars in thousands)			2023				2023				2022				2023				2022
Interest income		$	217,192			$	224,062			$	217,781			$	887,985			$	768,578
Interest expense			70,403				74,514				36,385				262,946				71,466
Net interest income			146,789				149,548				181,396				625,039				697,112
Noninterest (loss) income			(234,194	)			18,551				20,497				(173,918	)			88,748
(Loss) revenue			(87,405	)			168,099				201,893				451,121				785,860
Noninterest expense			102,770				102,185				99,182				406,951				396,670
Pre-provision net (loss) revenue			(190,175	)			65,914				102,711				44,170				389,190
Less: net loss from investment securities repositioning			(254,065	)			—				—				(254,065	)			—
Add: FDIC special assessment			2,080				—				—				2,080				—
Adjusted pre-provision net revenue		$	65,970			$	65,914			$	102,711			$	300,315			$	389,190
Pre-provision net (loss) revenue (annualized)		$	(760,700	)		$	263,656			$	410,844			$	44,170			$	389,190
Adjusted pre-provision net (loss) revenue (annualized)		$	263,880			$	263,656			$	410,844			$	300,315			$	389,190
Average assets		$	19,624,945			$	20,805,787			$	21,728,933			$	20,787,793			$	21,513,428
Pre-provision net (loss) revenue on average assets			(0.97	)%			0.32	%			0.47	%			0.21	%			1.81	%
Pre-provision net (loss) revenue on average assets (annualized)			(3.88	)%			1.27	%			1.89	%			0.21	%			1.81	%
Adjusted pre-provision net revenue on average assets			0.34	%			0.32	%			0.47	%			1.44	%			1.81	%
Adjusted pre-provision net revenue on average assets (annualized)			1.34	%			1.27	%			1.89	%			1.44	%			1.81	%

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												Year Ended
		December 31,				September 30,				December 31,				December 31,				December 31,
(Dollars in thousands)			2023				2023				2022				2023				2022
Total noninterest expense		$	102,770			$	102,185			$	99,182			$	406,951			$	396,670
Less: amortization of intangible assets			3,022				3,055				3,440				12,303				13,983
Less: other real estate owned operations, net			103				(4	)			—				215				—
Adjusted noninterest expense			99,645				99,134				95,742				394,433				382,687
Less: FDIC special assessment			2,080				—				—				2,080				—
Adjusted noninterest expense excluding FDIC special assessment		$	97,565			$	99,134			$	95,742			$	392,353			$	382,687
Net interest income before provision for credit losses		$	146,789			$	149,548			$	181,396			$	625,039			$	697,112
Add: total noninterest (loss) income			(234,194	)			18,551				20,497				(173,918	)			88,748
Less: net (loss) gain from sales of investment securities			(254,065	)			—				—				(253,927	)			1,710
Less: net (loss) gain from sales of other real estate owned			(24	)			—				—				82				—
Less: net gain from debt extinguishment			793				—				—				793				—
Adjusted revenue		$	165,891			$	168,099			$	201,893			$	704,173			$	784,150
Efficiency ratio			60.1	%			59.0	%			47.4	%			56.0	%			48.8	%
Adjusted efficiency ratio excluding FDIC special assessment			58.8	%			59.0	%			47.4	%			55.7	%			48.8	%

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.
		December 31,				September 30,				June 30,				March 31,				December 31,
(Dollars in thousands, except per share data)			2023				2023				2023				2023				2022
Total stockholders' equity		$	2,882,581			$	2,855,534			$	2,849,134			$	2,831,161			$	2,798,389
Less: intangible assets			944,597				947,619				950,674				953,729				956,900
Tangible common equity		$	1,937,984			$	1,907,915			$	1,898,460			$	1,877,432			$	1,841,489
Total assets		$	19,026,645			$	20,275,720			$	20,747,883			$	21,361,564			$	21,688,017
Less: intangible assets			944,597				947,619				950,674				953,729				956,900
Tangible assets		$	18,082,048			$	19,328,101			$	19,797,209			$	20,407,835			$	20,731,117
Tangible common equity ratio			10.72	%			9.87	%			9.59	%			9.20	%			8.88	%
Common shares issued and outstanding			95,860,092				95,900,847				95,906,217				95,714,777				95,021,760
Book value per share		$	30.07			$	29.78			$	29.71			$	29.58			$	29.45
Less: intangible book value per share			9.85				9.88				9.91				9.96				10.07
Tangible book value per share		$	20.22			$	19.89			$	19.79			$	19.61			$	19.38

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												Year Ended
		December 31,				September 30,				December 31,				December 31,				December 31,
(Dollars in thousands)			2023				2023				2022				2023				2022
Total deposits interest expense		$	60,915			$	62,718			$	25,865			$	217,447			$	40,093
Less: certificates of deposit interest expense			16,758				13,398				3,941				48,237				6,498
Less: brokered certificates of deposit interest expense			10,759				19,174				9,965				61,858				14,118
Non-maturity deposit expense		$	33,398			$	30,146			$	11,959			$	107,352			$	19,477
Total average deposits		$	15,536,701			$	16,543,917			$	17,608,783			$	16,565,357			$	17,594,941
Less: average retail certificates of deposit			1,604,507				1,439,531				975,958				1,385,531				944,963
Less: average brokered certificates of deposit			918,596				1,611,726				1,283,537				1,434,563				520,652
Average non-maturity deposits		$	13,013,598			$	13,492,660			$	15,349,288			$	13,745,263			$	16,129,326
Cost of non-maturity deposits			1.02	%			0.89	%			0.31	%			0.78	%			0.12	%

 

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The Pacific Premier Bancorp Stock at the time of publication of the news with a raise of +0,78 % to 25,90EUR on Lang & Schwarz stock exchange (29. Januar 2024, 12:04 Uhr).