Company Release - 4/23/2025

First Quarter 2025 Summary

• Net income of $36.0 million, or $0.37 per diluted share
• Return on average assets of 0.80%
• Net interest margin expanded 4 bps to 3.06%
• Average cost of deposits decreased 14 bps to 1.65%, and spot cost of deposits of 1.61%
• Non-maturity deposits⁽¹⁾ increased $247.0 million to $12.60 billion, or 85.9% of total deposits
• Non-interest bearing deposits increased $210.1 million to $4.83 billion, or 32.9% of total deposits
• Total delinquency of 0.02% of loans held for investment
• Nonperforming assets to total assets of 0.15%, net loan recoveries of $343,000
• Tangible book value per share⁽¹⁾ increased to $20.98
• Common equity tier 1 capital ratio of 16.99%, and total risk-based capital ratio of 20.23%

Irvine, Calif., April 23, 2025 -- Pacific Premier Bancorp, Inc. (NASDAQ: PPBI) (the “Company” or “Pacific Premier”), the holding company of Pacific Premier Bank (the “Bank”), reported net income of $36.0 million, or $0.37 per diluted share, for the first quarter of 2025, compared with net income of $33.9 million, or $0.35 per diluted share, for the fourth quarter of 2024, and net income of $47.0 million, or $0.49 per diluted share, for the first quarter of 2024.

For the first quarter of 2025, the Company’s return on average assets (“ROAA”) was 0.80%, return on average equity (“ROAE”) was 4.87%, and return on average tangible common equity (“ROATCE”)⁽¹⁾ was 7.48%, compared to 0.75%, 4.61%, and 7.15%, respectively, for the fourth quarter of 2024, and 0.99%, 6.50%, and 10.05%, respectively, for the first quarter of 2024. Total assets were $18.09 billion at March 31, 2025, compared to $17.90 billion at December 31, 2024, and $18.81 billion at March 31, 2024.

Steven R. Gardner, Chairman, Chief Executive Officer, and President of the Company, commented, “We delivered strong financial results in the first quarter, generating net income of $36.0 million, or $0.37 per share. These results demonstrate our ability to build on the momentum established in the second half of 2024, reflecting non-interest income growth and lower operating expenses. Notably, the cost of funds decreased 14 bps from the prior quarter to 1.74%, driving a four-basis point expansion in our net interest margin to 3.06%. Additionally, we maintained our strong capital levels, with our tier 1 common equity ratio at 16.99% and our total risk-based capital ratio at 20.23%, placing us among the top of our peers.

“We further strengthened our balance sheet with stable loan balances, higher new loan commitments, and strong non-maturity deposit growth. New loan commitments increased to $319.3 million, and non-maturity deposits increased by $247.0 million, or 8% annualized. Our deposit mix improved as noninterest-bearing deposits increased by $210.0 million, or 18% annualized, with noninterest-bearing deposits increasing to 33% of total deposits. These favorable trends translated to a 14 bps decrease in the cost of deposits to 1.65%, and our non-maturity cost of deposits improved 8 bps to 1.20%.

“The asset quality results for the first quarter remained strong across the board, reflecting the high credit quality of our client base. During the quarter, we had a provision reversal of $3.7 million and net recoveries of $343,000. Total delinquency decreased to $2.1 million, or just 0.02% of total loans. Our allowance for credit losses ratio, which stands at 1.46% of loans held for investment, remains at a healthy level and ranks in the top quartile relative to peers.

“In recent years, we prioritized risk management while building strong levels of capital, liquidity, and reserves. This proactive approach has us well-positioned with significant optionality. I am incredibly proud of our team’s commitment to our clients and organization, I want to thank my colleagues for all their contributions, collectively and individually.”

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