Company Release - 1/23/2025

Fourth Quarter 2024 Summary

• Net income of $33.9 million, or $0.35 per diluted share
• Return on average assets of 0.75%
• Average cost of deposits decreased 5 bps to 1.79%, end-of-period cost of deposits of 1.72%
• Non-maturity deposits increased $145.8 million to $12.35 billion, or 85.4% of total deposits
• Loans held for investment increased $4.6 million to $12.04 billion
• Total delinquency of 0.02% of loans held for investment, nonperforming assets to total assets of 0.16%, and net charge-offs to average loans of 0.01%
• Tangible book value per share⁽¹⁾ increased $0.16 from the prior quarter to $20.97
• Tangible common equity ratio⁽¹⁾ increased to 11.92%
• Common equity tier 1 capital ratio of 17.05%, and total risk-based capital ratio of 20.28%

Irvine, Calif., January 23, 2025 -- Pacific Premier Bancorp, Inc. (NASDAQ: PPBI) (the “Company” or “Pacific Premier”), the holding company of Pacific Premier Bank, National Association (the “Bank” or "Pacific Premier Bank"), reported net income of $33.9 million, or $0.35 per diluted share, for the fourth quarter of 2024, compared with net income of $36.0 million, or $0.37 per diluted share, for the third quarter of 2024, and a net loss of $135.4 million, or $1.44 per diluted share, for the fourth quarter of 2023.

For the fourth quarter of 2024, the Company’s return on average assets (“ROAA”) was 0.75%, return on average equity (“ROAE”) was 4.61%, and return on average tangible common equity (“ROATCE”)⁽¹⁾ was 7.15%, compared to 0.79%, 4.91%, and 7.63%, respectively, for the third quarter of 2024, and (2.76)%, (19.01)%, and (28.01)%, respectively, for the fourth quarter of 2023.

Total assets as of December 31, 2024 were $17.90 billion, compared to $17.91 billion at September 30, 2024, and $19.03 billion at December 31, 2023.

Steven R. Gardner, Chairman, Chief Executive Officer, and President of the Company, commented, “Our team delivered solid results in the fourth quarter, closing out the year in a strong financial position. Our performance throughout 2024 reflects the excellence of our organization and the effectiveness of our relationship-based business model that has us well-positioned to accelerate growth over the coming quarters.”

“The outstanding business development efforts of our relationship managers and their teams, along with a more favorable operating environment and improved client sentiment, led to increased loan originations of $316.0 million in the fourth quarter. Improved loan originations also led to expanded depository relationships as nonmaturity deposits increased $145.8 million from the prior quarter, resulting in a positive remix of our deposit base and an 8-basis point reduction in end-of-period deposit costs to 1.72%. The loan portfolio increased from the prior quarter led by growth in C&I and consumer loans as we supplemented our new loan production with select loan purchases and participations of commercial and single-family residential loans. Much of the loan closings occurred later in the quarter and thus the lower average loan balances led, in part, to the net interest margin contracting to 3.02%."

“We enter 2025 from a position of strength, which is reflected, in part, in our strong asset quality levels. Our total delinquency was 0.02% of loans and nonperforming assets decreased to 0.16% of total assets. These positive asset quality results, along with industry-leading capital ratios, provide us with significant flexibility to capitalize on emerging opportunities and thrive in a strengthening economic landscape, reinforcing our role as a trusted partner for our clients and our ability to maximize long term value for our shareholders.”

“Our hearts go out to everyone affected by the devastating California wildfires, including our colleagues, clients, and neighbors in the Los Angeles area. We stand ready to support our communities during this challenging time and we have the resources, capabilities, and commitment to rebuild LA. We will be there as a primary capital provider for the residents, builders, contractors, and related businesses as restoration efforts begin. As always, we remain committed to serving as both a trusted financial partner and a source of strength for the communities we proudly call home.”