Second Quarter 2024 Summary

• Net income of $41.9 million, or $0.43 per diluted share
• Return on average assets of 0.90%
• Pre-provision net revenue (“PPNR”)⁽¹⁾ to average assets of 1.23%, annualized
• Net interest margin of 3.26%
• Cost of deposits of 1.73%, and cost of non-maturity deposits⁽¹⁾ of 1.17%
• Non-maturity deposits⁽¹⁾ to total deposits of 83.66%
• Non-interest bearing deposits totaled 31.6% of total deposits
• Total delinquency of 0.14% of loans held for investment
• Nonperforming assets to total assets of 0.28%
• Tangible book value per share⁽¹⁾ increased $0.25 from the prior quarter to $20.58
• Common equity tier 1 capital ratio of 15.89%, and total risk-based capital ratio of 19.01%
• Tangible common equity ratio (“TCE”)⁽¹⁾ increased to 11.41%

Irvine, Calif., July 24, 2024 -- Pacific Premier Bancorp, Inc. (NASDAQ: PPBI) (the “Company” or “Pacific Premier”), the holding company of Pacific Premier Bank (the “Bank”), reported net income of $41.9 million, or $0.43 per diluted share, for the second quarter of 2024, compared with net income of $47.0 million, or $0.49 per diluted share, for the first quarter of 2024, and net income of $57.6 million, or $0.60 per diluted share, for the second quarter of 2023.

For the second quarter of 2024, the Company’s return on average assets (“ROAA”) was 0.90%, return on average equity (“ROAE”) was 5.76%, and return on average tangible common equity (“ROATCE”)⁽¹⁾ was 8.92%, compared to 0.99%, 6.50%, and 10.05%, respectively, for the first quarter of 2024, and 1.09%, 8.11%, and 12.66%, respectively, for the second quarter of 2023. Total assets were $18.33 billion at June 30, 2024, compared to $18.81 billion at March 31, 2024, and $20.75 billion at June 30, 2023.

Steven R. Gardner, Chairman, Chief Executive Officer, and President of the Company, commented, “We delivered solid financial results for the second quarter, producing net income of $41.9 million, or $0.43 per share. Our results reflect our disciplined approach to balance sheet and risk management, as well as our ongoing focus on capital accumulation. Our quarter-end tangible common equity⁽¹⁾ and tier 1 common equity ratios increased to 11.41% and 15.89%, respectively, placing us near the top of our peers for both ratios.

“Second quarter asset quality trends remained solid. Our nonperforming loans decreased to $52.1 million, reflecting our proactive approach to credit risk management. Overall, credit performance was consistent with our expectations as our borrowers are on solid financial footing and borrower cash flows generally do not appear to have deteriorated in any material way. Similar to our capital ratios, our allowance for credit losses ranks among the top of our peers.

“On the business development front, second quarter loan production increased to $150.7 million, as our teams continue to work collaboratively to expand our client base and reinforce existing long-term relationships. Additionally, we saw clients use excess deposits to pay down and pay off loans coupled with seasonal factors associated with tax payments and distributions, as total deposits declined from the prior quarter. Our deposit mix remained favorable, as brokered deposits declined by $87.9 million and noninterest-bearing deposits comprised 31.6% of total deposits.

“We enter the second half of the year from a position of strength and expect stabilization in our loan and deposit balances as we move through the rest of the year. Our strong capital and liquidity levels provide us with significant optionality and positions us well to take advantage of opportunities that may arise to drive future earnings growth as we continue to serve our small- and middle-market businesses and focus on building long-term franchise value. I want to thank all of our employees for their exceptional contributions this quarter and during the first half of 2024, as well as all of our stakeholders for their ongoing support.”