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Pacific Premier Bancorp, Inc. Announces Second Quarter 2025 Financial Results and a Quarterly Cash Dividend of $0.33 Per Share

Second Quarter 2025 Summary
 
•Net income of $32.1 million, or $0.33 per diluted share
•Return on average assets of 0.71%
•Net interest margin expanded 6 bps to 3.12%
•Average cost of deposits decreased 5 bps to 1.60%
•Non-maturity deposits(1) to total deposits of 86.5%
•Non-interest bearing deposits to total deposits of 32.3%
•Total delinquency of 0.02% of loans held for investment
•Nonperforming assets to total assets of 0.15%, net loan recoveries of $349,000
•Tangible book value per share(1) increased to $21.10
•Common equity tier 1 capital ratio of 17.00%, and total risk-based capital ratio of 18.85%
•Redemption of $150.0 million in subordinated notes due 2030

Irvine, Calif., July 24, 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 $32.1 million, or $0.33 per diluted share, for the second quarter of 2025, compared with net income of $36.0 million, or $0.37 per diluted share, for the first quarter of 2025, and net income of $41.9 million, or $0.43 per diluted share, for the second quarter of 2024.
    
For the second quarter of 2025, the Company’s return on average assets (“ROAA”) was 0.71%, return on average equity (“ROAE”) was 4.33%, and return on average tangible common equity (“ROATCE”)(1) was 6.66%, compared to 0.80%, 4.87%, and 7.48%, respectively, for the first quarter of 2025, and 0.90%, 5.76%, and 8.92%, respectively, for the second quarter of 2024. Total assets were $17.78 billion at June 30, 2025, compared to $18.09 billion at March 31, 2025, and $18.33 billion at June 30, 2024.

Steven R. Gardner, Chairman, Chief Executive Officer, and President of the Company, commented, “We delivered solid financial results for the second quarter, as we remain committed to our prudent, proactive approach to managing all aspects of our business as we work towards consummating our pending merger with Columbia Banking System, Inc. (“Columbia”).

“For the second quarter, we generated net income of $32.1 million, or $0.33 per share, which included non-recurring items that had an after-tax negative impact of $0.06 per share. Our net interest margin expanded by six basis points to 3.12%, driven by a five basis point reduction in our average deposit costs to 1.60%, which is reflective of our high-quality, low-cost deposit base and underscores the strong franchise that we will deliver to Columbia. Additionally, our quarter-end tangible common equity and Tier 1 common equity ratios increased to 12.14% and 17.00%, respectively.

“Asset quality trends for the second quarter remained strong, with nonperforming loans decreasing to $26.3 million, and we had net recoveries of $349,000. Overall, credit performance aligned with our expectations, as our borrowers are in stable positions despite broader macroeconomic uncertainties.

“Our second quarter new loan commitments increased to $578.5 million, nearly double the first quarter’s levels. We also maintained a favorable deposit mix, with brokered deposits decreasing by $99.9 million and noninterest-bearing deposits comprising 32.3% of total deposits. Consistent with our proactive and prudent approach to capital and liquidity management, we redeemed $150 million of higher-cost subordinated debt during
(1) Reconciliations of the non–U.S. generally accepted accounting principles (“GAAP”) measures are set forth at the end of this press release.
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the second quarter, and with the anticipated redemption of $125 million of subordinated debt in August, we effectively will eliminate our remaining wholesale funding heading into the Columbia merger.

“We are pleased to have received overwhelming stockholder support for our pending merger with Columbia and anticipate closing the transaction as soon as September 1, 2025, pending regulatory approvals and satisfaction of remaining customary closing conditions. Our integration planning efforts have been progressing seamlessly since the announcement. We currently are tracking ahead of plan, and we have never worked with a merger partner as thoroughly prepared as the Columbia team. Our employees have been collaborating effectively, and we are excited to be part of the new organization.

“Lastly, I want to extend my heartfelt thanks to my dedicated colleagues and the board of directors at Pacific Premier for their exceptional contributions, as well as to all our stakeholders for their continued support. Reflecting on the past 25 years, I feel a deep sense of pride in what we have accomplished together, growing nearly twentyfold during that time and delivering long-term value to our stockholders. I am optimistic about the future and excited for the next chapter of our company.”
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FINANCIAL HIGHLIGHTS
Three Months Ended
 June 30,March 31,June 30,
(Dollars in thousands, except per share data)202520252024
Financial highlights (unaudited)
Net income
$32,061 $36,021 $41,905 
Net interest income126,755 123,367 136,394 
Diluted earnings per share
0.33 0.37 0.43 
Common equity dividend per share paid0.33 0.33 0.33 
ROAA
0.71 %0.80 %0.90 %
ROAE
4.33 4.87 5.76 
ROATCE (1)
6.66 7.48 8.92 
Net interest margin3.12 3.06 3.26 
Cost of deposits1.60 1.65 1.73 
Cost of non-maturity deposits (1)
1.21 1.20 1.17 
Efficiency ratio (1)
65.3 67.5 61.3 
Noninterest expense as a percent of average assets2.32 2.22 2.10 
Total assets$17,783,172 $18,085,583 $18,332,325 
Total deposits14,497,373 14,666,232 14,627,654 
Non-maturity deposits (1) as a percent of total deposits
86.5 %85.9 %83.7 %
Noninterest-bearing deposits as a percent of total deposits32.3 32.9 31.6 
Loan-to-deposit ratio82.1 82.0 85.4 
Nonperforming assets as a percent of total assets0.15 0.15 0.28 
Delinquency as a percentage of loans held for investment0.02 0.02 0.14 
Allowance for credit losses to loans held for investment (2)
1.43 1.46 1.47 
Book value per share$30.67 $30.57 $30.32 
Tangible book value per share (1)
21.10 20.98 20.58 
Tangible common equity ratio (1)
12.14 %11.87 %11.41 %
Common equity tier 1 capital ratio17.00 16.99 15.89 
Total capital ratio18.85 20.23 19.01 
______________________________
(1) Reconciliations of the non-GAAP measures are set forth at the end of this press release.
(2) At June 30, 2025, 20% of loans held for investment include a fair value net discount of $29.5 million, or 0.25% of loans held for investment. At March 31, 2025, 21% of loans held for investment include a fair value net discount of $31.3 million, or 0.26% of loans held for investment. At June 30, 2024, 25% of loans held for investment include a fair value net discount of $38.6 million, or 0.31% of loans held for investment.

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INCOME STATEMENT HIGHLIGHTS

Net Interest Income and Net Interest Margin
 
Net interest income totaled $126.8 million in the second quarter of 2025, an increase of $3.4 million, or 2.7%, from the first quarter of 2025. The increase in net interest income was primarily attributable to lower cost of funds, and lower average interest-bearing liabilities, partially offset by lower average interest-earning assets.

The net interest margin for the second quarter of 2025 increased 6 basis points to 3.12%, from 3.06% in the prior quarter. The increase was primarily due to lower cost of funds as well as increased average loan yields.

Net interest income for the second quarter of 2025 decreased $9.6 million, or 7.1%, compared to the second quarter of 2024. The decrease was attributable to lower average interest-earning asset balances and yields, partially offset by lower average interest-bearing liabilities balances and lower cost of funds.

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCES AND YIELD DATA
(Unaudited)
 Three Months Ended
 June 30, 2025March 31, 2025June 30, 2024
(Dollars in thousands)Average BalanceInterest Income/ExpenseAverage
 Yield/
 Cost		Average BalanceInterest Income/ExpenseAverage
 Yield/
 Cost		Average BalanceInterest Income/ExpenseAverage Yield/ Cost
Assets
Cash and cash equivalents$815,636 $7,649 3.76 %$882,266 $8,279 3.81 %$1,134,736 $13,666 4.84 %
Investment securities3,552,016 31,113 3.50 3,483,680 30,526 3.51 2,964,909 26,841 3.62 
Loans receivable, net (1) (2)
11,923,558 150,419 5.06 11,981,726 148,530 5.03 12,724,545 167,547 5.30 
Total interest-earning assets$16,291,210 $189,181 4.66 $16,347,672 $187,335 4.65 $16,824,190 $208,054 4.97 
Liabilities
Interest-bearing deposits$9,876,221 $58,376 2.37 %$9,924,482 $59,573 2.43 %$10,117,571 $64,229 2.55 %
Borrowings248,305 4,050 6.48 272,739 4,395 6.44 532,251 7,431 5.59 
Total interest-bearing liabilities$10,124,526 $62,426 2.47 $10,197,221 $63,968 2.54 $10,649,822 $71,660 2.71 
Noninterest-bearing deposits$4,733,981 $4,710,940 $4,824,002 
Net interest income$126,755 $123,367 $136,394 
Net interest margin (3)
  3.12 %3.06 %3.26 %
Cost of deposits (4)
1.60 1.65 1.73 
Cost of funds (5)
1.69 1.74 1.86 
Cost of non-maturity deposits (6)
1.21 1.20 1.17 
Ratio of interest-earning assets to interest-bearing liabilities160.91 160.31 157.98 
_______________________________________
(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 fair value net discount accretion of $1.8 million, $1.9 million, and $2.3 million for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, 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.
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Provision for Credit Losses

For the second quarter of 2025, the Company recorded a $2.1 million provision reversal, compared to a $3.7 million provision reversal for the first quarter of 2025, and a $1.3 million provision expense for the second quarter of 2024. The reversal of provision for credit losses for the current quarter was largely attributable to the decrease in loan balances and changes in the loan composition, partially offset by increases associated with higher unfunded commitments.
Three Months Ended
June 30,March 31,June 30,
(Dollars in thousands)202520252024
Provision for credit losses
Provision for loan losses$(4,653)$(3,562)$1,756 
Provision for unfunded commitments2,569 (143)(505)
Provision for held-to-maturity securities6 (13)14 
Total provision for credit losses$(2,078)$(3,718)$1,265 

Noninterest Income
 
Noninterest income for the second quarter of 2025 was $17.6 million, a decrease of $3.9 million from the first quarter of 2025. The decrease was primarily due to a $1.5 million decrease in trust custodial account income related to annual tax fees recognized in the prior quarter, a $1.4 million decrease in earnings on bank owned life insurance, and a $1.3 million loss on debt extinguishment, resulting from the early redemption of $150.0 million in subordinated notes.

Noninterest income for the second quarter of 2025 decreased $657,000 compared to the second quarter of 2024.
Three Months Ended
June 30,March 31,June 30,
(Dollars in thousands)202520252024
Noninterest income
Loan servicing income$472 $447 $510 
Service charges on deposit accounts2,578 2,629 2,710 
Other service fee income283 289 309 
Debit card interchange fee income935 834 925 
Earnings on bank owned life insurance4,341 5,772 4,218 
Net gain from sales of loans
23 90 65 
Trust custodial account fees
8,815 10,307 8,950 
Escrow and exchange fees774 672 702 
Other (loss) income
(656)425 (167)
Total noninterest income
$17,565 $21,465 $18,222 

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Noninterest Expense
 
Noninterest expense totaled $104.4 million for the second quarter of 2025, an increase of $4.1 million compared to the first quarter of 2025. The increase was primarily due to merger-related expense of $6.7 million for the second quarter of 2025 relating to the pending merger with Columbia. Excluding the merger-related expense, noninterest expense totaled $97.7 million, a decrease of $2.6 million compared to the first quarter of 2025 primarily attributable to a $2.6 million decrease in legal and professional services.

Noninterest expense for the second quarter of 2025 increased by $6.8 million compared to the second quarter of 2024. The increase was primarily due to merger-related expense of $6.7 million for the second quarter of 2025.
Three Months Ended
June 30,March 31,June 30,
(Dollars in thousands)202520252024
Noninterest expense
Compensation and benefits$53,268 $52,812 $53,140 
Premises and occupancy8,471 9,716 10,480 
Data processing7,806 7,976 7,754 
FDIC insurance premiums1,947 1,996 1,873 
Legal and professional services2,223 4,861 1,078 
Marketing expense905 936 1,724 
Office expense1,006 1,099 1,077 
Loan expense829 781 840 
Deposit expense13,644 12,896 12,289 
Merger-related expense6,712 — — 
Amortization of intangible assets2,501 2,566 2,763 
Other expense5,064 4,653 4,549 
Total noninterest expense$104,376 $100,292 $97,567 

Income Tax

For the second quarter of 2025, income tax expense totaled $10.0 million, resulting in an effective tax rate of 23.7%, compared with income tax expense of $12.2 million and an effective tax rate of 25.4% for the first quarter of 2025, and income tax expense of $13.9 million and an effective tax rate of 24.9% for the second quarter of 2024.

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BALANCE SHEET HIGHLIGHTS

Loans

Loans held for investment totaled $11.90 billion at June 30, 2025, a decrease of $120.9 million, or 1.0% from March 31, 2025, and a decrease of $587.9 million, or 4.7%, from June 30, 2024. The decrease from March 31, 2025 was primarily due to lower loan purchases, partially offset by lower prepayments and maturities.

New origination activity during the second quarter of 2025 increased compared to both the first quarter of 2025 and the second quarter of 2024. New loan commitments totaled $578.5 million, and new loan fundings totaled $195.8 million, compared to $319.3 million in loan commitments and $207.3 million in new loan fundings for the first quarter of 2025, and $150.7 million in loan commitments and $58.6 million in new loan fundings for the second quarter of 2024.
 
At June 30, 2025, the total loan-to-deposit ratio was 82.1%, compared to 82.0% and 85.4% at March 31, 2025 and June 30, 2024, 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
June 30,March 31,June 30,
(Dollars in thousands)202520252024
Beginning gross loan balance before basis adjustment$12,035,979 $12,058,498 $13,044,395 
New commitments578,491 319,308 150,666 
Unfunded new commitments(382,734)(112,006)(92,017)
Net new fundings195,757 207,302 58,649 
Purchased loans48,817 238,649 — 
Amortization/maturities/payoffs(391,083)(448,759)(447,170)
Net draws on existing lines of credit24,963 (16,193)(100,302)
Loan sales(679)(3,050)(23,750)
Charge-offs(324)(468)(13,530)
Net decrease
(122,549)(22,519)(526,103)
Ending gross loan balance before basis adjustment$11,913,430 $12,035,979 $12,518,292 
Basis adjustment associated with fair value hedge (1)
(10,600)(13,001)(28,201)
Ending gross loan balance $11,902,830 $12,022,978 $12,490,091 
______________________________
(1) Represents the basis adjustment associated with the application of hedge accounting on certain loans.


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

June 30,March 31,June 30,
(Dollars in thousands)202520252024
Investor loans secured by real estate
Commercial real estate (“CRE”) non-owner-occupied$2,084,781 $2,111,115 $2,245,474 
Multifamily5,255,040 5,307,484 5,473,606 
Construction and land302,781 302,730 453,799 
SBA secured by real estate (1)
27,405 27,571 33,245 
Total investor loans secured by real estate7,670,007 7,748,900 8,206,124 
Business loans secured by real estate (2)
CRE owner-occupied1,918,031 1,962,531 2,096,485 
Franchise real estate secured227,080 238,870 274,645 
SBA secured by real estate (3)
39,263 42,227 46,543 
Total business loans secured by real estate2,184,374 2,243,628 2,417,673 
Commercial loans (4)
Commercial and industrial (“C&I”)
1,643,977 1,609,225 1,554,735 
Franchise non-real estate secured180,708 194,454 257,516 
SBA non-real estate secured7,472 7,546 10,346 
Total commercial loans1,832,157 1,811,225 1,822,597 
Retail loans
Single family residential (5)
224,483 230,262 70,380 
Consumer1,658 1,964 1,378 
Total retail loans226,141 232,226 71,758 
Loans held for investment before basis adjustment (6)
11,912,679 12,035,979 12,518,152 
Basis adjustment associated with fair value hedge (7)
(10,600)(13,001)(28,201)
Loans held for investment11,902,079 12,022,978 12,489,951 
Allowance for credit losses for loans held for investment(170,663)(174,967)(183,803)
Loans held for investment, net$11,731,416 $11,848,011 $12,306,148 
Total unfunded loan commitments$1,723,901 $1,453,174 $1,601,870 
Loans held for sale, at lower of cost or fair value$751 $— $140 
______________________________
(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 unamortized net purchase premiums of $11.2 million, $11.6 million, and $3.8 million, net deferred origination (fees) costs of $(103,000), $850,000, and $1.4 million, and unaccreted fair value net purchase discounts of $29.5 million, $31.3 million, and $38.6 million as of June 30, 2025, March 31, 2025, and June 30, 2024, 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 at June 30, 2025 was 4.83%, compared to 4.80% at March 31, 2025, and 4.88% at June 30, 2024. The quarter-over-quarter increase was primarily attributable to higher-yielding new loan fundings and loan purchases.
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The following table presents the composition of loan commitments originated during the quarters indicated:

Three Months Ended
June 30,March 31,June 30,
(Dollars in thousands)202520252024
Investor loans secured by real estate
CRE non-owner-occupied$65,529 $45,346 $3,818 
Multifamily48,915 105,375 6,026 
Construction and land106,304 49,230 16,820 
Total investor loans secured by real estate220,748 199,951 26,664 
Business loans secured by real estate (1)
CRE owner-occupied36,708 30,235 2,623 
Franchise real estate secured958 3,185 — 
SBA secured by real estate (2)
— 3,260 — 
Total business loans secured by real estate37,666 36,680 2,623 
Commercial loans (3)
Commercial and industrial300,260 72,451 109,679 
Franchise non-real estate secured1,740 1,406 — 
SBA non-real estate secured1,825 — 1,281 
Total commercial loans303,825 73,857 110,960 
Retail loans
Single family residential (4)
16,013 8,113 7,698 
Consumer239 707 2,721 
Total retail loans16,252 8,820 10,419 
Total loan commitments$578,491 $319,308 $150,666 
______________________________
(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 7.10% in the second quarter of 2025, compared to 6.95% in the first quarter of 2025, and 8.58% in the second quarter of 2024.

Allowance for Credit Losses
 
At June 30, 2025, our allowance for credit losses (“ACL”) on loans held for investment was $170.7 million, a decrease of $4.3 million from March 31, 2025 and a decrease of $13.1 million from June 30, 2024. The decreases in the ACL from March 31, 2025 and June 30, 2024 primarily reflects the relative changes in the size and composition of our loan portfolio, partially offset by increases associated with economic forecasts..

During the second quarter of 2025, the Company had $349,000 of net recoveries, compared to $343,000 of net recoveries during the first quarter of 2025, and $10.3 million of net charge-offs during the second quarter of 2024.

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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 June 30, 2025
(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$26,866 $— $— $254 $27,120 
Multifamily51,375 — — 2,603 53,978 
Construction and land3,777 — — (210)3,567 
SBA secured by real estate (1)
1,678 — — (551)1,127 
Business loans secured by real estate (2)
CRE owner-occupied30,521 — — (2,600)27,921 
Franchise real estate secured4,663 — — (651)4,012 
SBA secured by real estate (3)
3,864 — — (415)3,449 
Commercial loans (4)
Commercial and industrial41,902 (280)298 (1,821)40,099 
Franchise non-real estate secured8,077 (22)— (1,451)6,604 
SBA non-real estate secured461 — 2 (26)437 
Retail loans
Single family residential (5)
1,680 — 9 548 2,237 
Consumer loans103 (22)364 (333)112 
Totals$174,967 $(324)$673 $(4,653)$170,663 
______________________________
(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 June 30, 2025 decreased to 1.43%, compared to 1.46% at March 31, 2025 and 1.47% at June 30, 2024. The fair value net discount on loans acquired through bank acquisitions was $29.5 million, or 0.25% of total loans held for investment, as of June 30, 2025, compared to $31.3 million, or 0.26% of total loans held for investment, as of March 31, 2025, and $38.6 million, or 0.31% of total loans held for investment, as of June 30, 2024.

Asset Quality

Nonperforming assets totaled $26.3 million, or 0.15% of total assets, at June 30, 2025, compared to $27.7 million, or 0.15% of total assets, at March 31, 2025, and $52.1 million, or 0.28% of total assets, at June 30, 2024. Loan delinquencies were $2.0 million, or 0.02% of loans held for investment, at June 30, 2025, compared to $2.1 million, or 0.02% of loans held for investment, at March 31, 2025, and $17.9 million, or 0.14% of loans held for investment, at June 30, 2024.

Classified loans totaled $89.1 million, or 0.75% of loans held for investment, at June 30, 2025, compared to $89.2 million, or 0.74% of loans held for investment, at March 31, 2025, and $183.8 million, or 1.47% of loans held for investment, at June 30, 2024.


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

 June 30,March 31,June 30,
(Dollars in thousands)202520252024
Asset quality
Nonaccrual loans - held for investment$26,301 $27,693 $52,119 
Other real estate owned— — — 
Nonperforming assets$26,301 $27,693 $52,119 
Total classified assets (1)
$89,120 $89,185 $183,833 
Allowance for credit losses170,663 174,967 183,803 
Allowance for credit losses as a percent of total nonperforming loans649 %632 %353 %
Nonperforming loans as a percent of loans held for investment0.22 0.23 0.42 
Nonperforming assets as a percent of total assets0.15 0.15 0.28 
Classified loans to total loans held for investment0.75 0.74 1.47 
Classified assets to total assets0.50 0.49 1.00 
Net loan (recoveries) charge-offs for the quarter ended
$(349)$(343)$10,293 
Net loan (recoveries) charge-offs for the quarter to average total loans
— %— %0.08 %
Allowance for credit losses to loans held for investment (2)
1.43 1.46 1.47 
Delinquent loans (3)
  
30 - 59 days$689 $300 $4,985 
60 - 89 days99 352 3,289 
90+ days1,259 1,440 9,649 
Total delinquency$2,047 $2,092 $17,923 
Delinquency as a percentage of loans held for investment0.02 %0.02 %0.14 %
______________________________
(1) Includes substandard and doubtful loans, and other real estate owned.
(2) At June 30, 2025, 20% of loans held for investment include a fair value net discount of $29.5 million, or 0.25% of loans held for investment. At March 31, 2025, 21% of loans held for investment include a fair value net discount of $31.3 million, or 0.26% of loans held for investment. At June 30, 2024, 25% of loans held for investment include a fair value net discount of $38.6 million, or 0.31% of loans held for investment.
(3) Nonaccrual loans are included in this aging analysis based on the loan’s past due status.

Investment Securities

At June 30, 2025, available-for-sale (“AFS”) and held-to-maturity (“HTM”) investment securities were $1.58 billion and $1.69 billion, respectively, compared to $1.76 billion and $1.70 billion, respectively, at March 31, 2025, and $1.32 billion and $1.71 billion, respectively, at June 30, 2024.

In total, investment securities were $3.27 billion at June 30, 2025, a decrease of $188.9 million from March 31, 2025, and an increase of $239.4 million from June 30, 2024. The decrease in the second quarter of 2025 compared to the prior quarter was primarily due to principal payments, amortization and accretion, and redemptions totaling $288.4 million, partially offset by purchases of $99.4 million in shorter-term AFS U.S. Treasury securities and an improvement of $135,000 in AFS investment securities mark-to-market unrealized loss.

The increase in investment securities from June 30, 2024 was the result of $1.14 billion in purchases of primarily AFS securities and, to a lesser extent, HTM securities, and an improvement of $20.2 million in AFS securities mark-to-market unrealized loss, partially offset by principal payments, amortization and accretion, and redemptions totaling $919.1 million.
11

Deposits

At June 30, 2025, total deposits were $14.50 billion, a decrease of $168.9 million, or 1.2%, from March 31, 2025, and a decrease of $130.3 million, or 0.9%, from June 30, 2024. The decrease from the prior quarter was primarily driven by decreases of $139.3 million in noninterest-bearing checking, $106.2 million in maturity deposits, primarily driven by a $99.9 million reduction in brokered certificates of deposit, and $44.7 million in interest-bearing checking, partially offset by an increase of $121.4 million in money market and savings.

The decrease from June 30, 2024 was attributable to decreases of $283.8 million in brokered certificates of deposit and $147.7 million in retail certificates of deposit, partially offset by an increase of $191.1 million in money market and savings, $71.7 million in noninterest-bearing checking, and $38.5 million in interest-bearing checking.

At June 30, 2025, non-maturity deposits(1) totaled $12.54 billion, or 86.5% of total deposits, a decrease of $62.6 million, or 0.5%, from March 31, 2025, and an increase of $301.2 million, or 2.5%, from June 30, 2024.

At June 30, 2025, maturity deposits totaled $1.96 billion, a decrease of $106.2 million, or 5.1%, from March 31, 2025, and a decrease of $431.5 million, or 18.0%, from June 30, 2024.

The weighted average cost of total deposits for the second quarter of 2025 decreased to 1.60%, compared to 1.65% for the first quarter of 2025, and 1.73% for the second quarter of 2024. The weighted average cost of non-maturity deposits(1) for the second quarter of 2025 was 1.21%, compared to 1.20% for the first quarter of 2025, and 1.17% for the second quarter of 2024.

At June 30, 2025, the end-of-period weighted average rate of total deposits was 1.60%, compared to 1.61% at March 31, 2025, and 1.81% at June 30, 2024. At June 30, 2025, the end-of-period weighted average rate of non-maturity deposits was 1.24%, compared to 1.19% at March 31, 2025, and 1.25% at June 30, 2024.

























______________________________
(1) Reconciliations of the non-GAAP measures are set forth at the end of this press release.
12

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

 June 30,March 31,June 30,
(Dollars in thousands)202520252024
Deposit accounts
Noninterest-bearing checking$4,687,795 $4,827,093 $4,616,124 
Interest-bearing:
Checking2,814,687 2,859,411 2,776,212 
Money market/savings5,035,658 4,914,248 4,844,585 
Total non-maturity deposits (1)
12,538,140 12,600,752 12,236,921 
Retail certificates of deposit1,758,846 1,765,235 1,906,552 
Wholesale/brokered certificates of deposit200,387 300,245 484,181 
Total maturity deposits1,959,233 2,065,480 2,390,733 
Total deposits$14,497,373 $14,666,232 $14,627,654 
Cost of deposits1.60 %1.65 %1.73 %
Cost of non-maturity deposits (1)
1.21 1.20 1.17 
Noninterest-bearing deposits as a percent of total deposits32.3 32.9 31.6 
Non-maturity deposits (1) as a percent of total deposits
86.5 85.9 83.7 
______________________________
(1) Reconciliations of the non-GAAP measures are set forth at the end of this press release.


Borrowings

At June 30, 2025, total borrowings amounted to $124.0 million, a decrease of $148.6 million from March 31, 2025, and a decrease of $408.1 million from June 30, 2024. Total borrowings at June 30, 2025 were comprised of $124.0 million of subordinated notes. The decrease in borrowings at June 30, 2025 as compared to March 31, 2025 was due to the early redemption of $150.0 million in subordinated notes. The decrease in borrowings at June 30, 2025 as compared to June 30, 2024 was due to a decrease of $200.0 million in FHLB term advances, the early redemption of $150.0 million in subordinated notes during this quarter, and the maturity of $60.0 million in subordinated notes in 2024.

As of June 30, 2025, our unused borrowing capacity was $9.15 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, none of which were utilized during the second quarter of 2025.

Capital Ratios

At June 30, 2025, our common stockholders’ equity was $2.98 billion, or 16.73% of total assets, compared with $2.97 billion, or 16.41%, at March 31, 2025, and $2.92 billion, or 15.95%, at June 30, 2024. At June 30, 2025, the ratio of tangible common equity to tangible assets(1) increased 27 basis points and 73 basis points to 12.14%, compared with 11.87% at March 31, 2025, and 11.41% at June 30, 2024, respectively. Tangible book value per share(1) increased $0.12 and $0.52 to $21.10, compared with $20.98 at March 31, 2025, and $20.58 at June 30, 2024, respectively.





______________________________
(1) Reconciliations of the non-GAAP measures are set forth at the end of this press release.
13

Effective January 1, 2025, the full effect of current expected credit losses (“CECL”) on regulatory capital over the five-year transition period was phased in. At June 30, 2025, 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.

June 30,March 31,June 30,
Capital ratios202520252024
Pacific Premier Bancorp, Inc. Consolidated   
Tier 1 leverage ratio12.40 %12.30 %11.87 %
Common equity tier 1 capital ratio17.00 16.99 15.89 
Tier 1 capital ratio17.00 16.99 15.89 
Total capital ratio18.85 20.23 19.01 
Tangible common equity ratio (1)
12.14 11.87 11.41 
Pacific Premier Bank
Tier 1 leverage ratio12.84 %13.62 %13.42 %
Common equity tier 1 capital ratio17.60 18.81 17.97 
Tier 1 capital ratio17.60 18.81 17.97 
Total capital ratio18.85 20.07 19.22 
Share data   
Book value per share$30.67 $30.57 $30.32 
Tangible book value per share (1)
21.10 20.98 20.58 
Common equity dividends declared per share0.33 0.33 0.33 
Closing stock price (2)
21.09 21.32 22.97 
Shares issued and outstanding97,019,910 97,069,001 96,434,047 
Market capitalization (2)(3)
$2,046,150 $2,069,511 $2,215,090 
______________________________
(1) Reconciliations of the non-GAAP measures are 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 July 23, 2025, the Company’s Board of Directors declared a $0.33 per share dividend, payable on August 15, 2025 to stockholders of record as of August 5, 2025. In January 2021, the Company’s Board of Directors approved a stock repurchase program, which authorized the repurchase of up to 4,725,000 shares of its common stock. During the second quarter of 2025, the Company did not repurchase any shares of common stock.

Subsequent events

On July 14, 2025, the Company’s Board of Directors approved the early redemption of $125.0 million in subordinated notes due 2029 on or around August 15, 2025.


14

About Pacific Premier Bancorp, Inc.

Pacific Premier Bancorp, Inc. (Nasdaq: PPBI) is the parent company of Pacific Premier Bank, National Association, a nationally chartered commercial bank focused on serving small, middle-market, and corporate businesses throughout the western United States in major metropolitan markets in California, Washington, Oregon, 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 $18 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 over $18 billion of assets under custody and close to 30,000 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 (“U.S.”) economy in general and the strength of the local economies in which we conduct operations; adverse developments in the banking industry, for example the high-profile bank failures in 2023, 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 labor market, ineffective management of the U.S. Federal budget or debt, fluctuations in the real estate market, 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 any increased costs of monitoring, testing, and maintaining compliance with complex laws and regulations; the effectiveness of our risk management framework
15

and quantitative models; 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 or adjust 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 concentrations in our loan portfolio, including commercial real estate and 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 conflict in the Middle East, all of which could impact business and economic conditions in the United States and abroad; tariffs, trade policies, and related tensions, which could impact our clients, specific industry sectors and/or broader economic conditions and financial market; public health crises and pandemics 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 the cost of defending against them; climate change, including the enhanced regulatory, compliance, credit, and reputational risks and costs; natural disasters, earthquakes, fires, and severe weather; unanticipated regulatory, legal, or judicial proceedings; the possibility that the Company’s pending merger with Columbia does not close when expected or at all because required regulatory or other approvals and other conditions to closing are not received or satisfied on a timely basis or at all; the possibility that the anticipated benefits and cost savings from the merger with Columbia may not be fully realized or may take longer to realize than expected; disruptions to the Company’s business as a result of the announcement and pendency of the merger with Columbia; the possibility that the merger with Columbia may be more expensive to complete than anticipated, including as a result of unexpected factors or events; 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 2024 Annual Report on Form 10-K and quarterly report on Form 10-Q for the quarter ended March 31, 2025 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.

Contacts:
 
Pacific Premier Bancorp, Inc.
 
Steven R. Gardner
Chairman, Chief Executive Officer, and President
(949) 864-8000

Ronald J. Nicolas, Jr.
Senior Executive Vice President and Chief Financial Officer
(949) 864-8000

Matthew J. Lazzaro
Senior Vice President and Director of Investor Relations
(949) 243-1082
16

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
 June 30,March 31,December 31,September 30,June 30,
(Dollars in thousands)20252025202420242024
ASSETS
Cash and cash equivalents$791,137 $768,194 $609,330 $982,249 $899,817 
Interest-bearing time deposits with financial institutions1,253 1,253 1,246 1,246 996 
Investment securities held-to-maturity, at amortized cost, net of allowance for credit losses 1,687,871 1,700,117 1,711,804 1,713,575 1,710,141 
Investment securities available-for-sale, at fair value1,581,731 1,758,340 1,683,215 1,316,546 1,320,050 
FHLB, FRB, and other stock97,717 97,729 97,539 97,336 97,037 
Loans held for sale, at lower of amortized cost or fair value751 — 2,315 — 140 
Loans held for investment11,902,079 12,022,978 12,039,741 12,035,097 12,489,951 
Allowance for credit losses(170,663)(174,967)(178,186)(181,248)(183,803)
Loans held for investment, net11,731,416 11,848,011 11,861,555 11,853,849 12,306,148 
Accrued interest receivable69,455 69,210 67,953 64,803 69,629 
Premises and equipment, net45,666 46,765 48,580 49,807 52,137 
Deferred income taxes, net93,450 94,083 100,295 104,564 108,607 
Bank owned life insurance490,770 487,180 484,952 481,309 477,694 
Intangible assets27,127 29,628 32,194 34,924 37,686 
Goodwill901,312 901,312 901,312 901,312 901,312 
Other assets263,516 283,761 301,295 308,123 350,931 
Total assets$17,783,172 $18,085,583 $17,903,585 $17,909,643 $18,332,325 
LIABILITIES  
Deposit accounts:  
Noninterest-bearing checking$4,687,795 $4,827,093 $4,617,013 $4,639,077 $4,616,124 
Interest-bearing:
Checking2,814,687 2,859,411 2,898,810 2,763,353 2,776,212 
Money market/savings5,035,658 4,914,248 4,837,929 4,805,516 4,844,585 
Retail certificates of deposit1,758,846 1,765,235 1,809,818 1,972,962 1,906,552 
Wholesale/brokered certificates of deposit200,387 300,245 300,132 300,019 484,181 
Total interest-bearing9,809,578 9,839,139 9,846,689 9,841,850 10,011,530 
Total deposits14,497,373 14,666,232 14,463,702 14,480,927 14,627,654 
FHLB advances and other borrowings— — — — 200,000 
Subordinated debentures124,023 272,579 272,449 272,320 332,160 
Accrued expenses and other liabilities186,358 179,683 211,691 212,459 248,747 
Total liabilities14,807,754 15,118,494 14,947,842 14,965,706 15,408,561 
STOCKHOLDERS’ EQUITY     
Common stock946 946 942 942 941 
Additional paid-in capital2,400,552 2,394,834 2,395,339 2,389,767 2,383,615 
Retained earnings639,189 639,321 635,268 633,350 629,341 
Accumulated other comprehensive loss(65,269)(68,012)(75,806)(80,122)(90,133)
Total stockholders’ equity2,975,418 2,967,089 2,955,743 2,943,937 2,923,764 
Total liabilities and stockholders’ equity$17,783,172 $18,085,583 $17,903,585 $17,909,643 $18,332,325 








17

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 Three Months EndedSix Months Ended
 June 30,March 31,June 30,June 30,June 30,
(Dollars in thousands, except per share data)20252025202420252024
INTEREST INCOME   
Loans$150,419 $148,530 $167,547 $298,949 $340,522 
Investment securities and other interest-earning assets38,762 38,805 40,507 77,567 80,963 
Total interest income189,181 187,335 208,054 376,516 421,485 
INTEREST EXPENSE  
Deposits58,376 59,573 64,229 117,949 123,735 
FHLB advances and other borrowings2 2 2,330 4 6,567 
Subordinated debentures4,048 4,393 5,101 8,441 9,662 
Total interest expense62,426 63,968 71,660 126,394 139,964 
Net interest income before provision for credit losses126,755 123,367 136,394 250,122 281,521 
Provision for credit losses(2,078)(3,718)1,265 (5,796)5,117 
Net interest income after provision for credit losses128,833 127,085 135,129 255,918 276,404 
NONINTEREST INCOME  
Loan servicing income472 447 510 919 1,039 
Service charges on deposit accounts2,578 2,629 2,710 5,207 5,398 
Other service fee income283 289 309 572 645 
Debit card interchange fee income935 834 925 1,769 1,690 
Earnings on bank owned life insurance4,341 5,772 4,218 10,113 8,377 
Net gain from sales of loans
23 90 65 113 65 
Trust custodial account fees
8,815 10,307 8,950 19,122 19,592 
Escrow and exchange fees774 672 702 1,446 1,398 
Other (loss) income
(656)425 (167)(231)5,792 
Total noninterest income
17,565 21,465 18,222 39,030 43,996 
NONINTEREST EXPENSE  
Compensation and benefits53,268 52,812 53,140 106,080 107,270 
Premises and occupancy8,471 9,716 10,480 18,187 21,287 
Data processing7,806 7,976 7,754 15,782 15,265 
Other real estate owned operations, net— — — — 46 
FDIC insurance premiums1,947 1,996 1,873 3,943 4,502 
Legal and professional services2,223 4,861 1,078 7,084 5,221 
Marketing expense905 936 1,724 1,841 3,282 
Office expense1,006 1,099 1,077 2,105 2,170 
Loan expense829 781 840 1,610 1,610 
Deposit expense13,644 12,896 12,289 26,540 24,954 
Merger-related expense6,712 — — 6,712 — 
Amortization of intangible assets2,501 2,566 2,763 5,067 5,599 
Other expense5,064 4,653 4,549 9,717 8,994 
Total noninterest expense104,376 100,292 97,567 204,668 200,200 
Net income before income taxes
42,022 48,258 55,784 90,280 120,200 
Income tax expense
9,961 12,237 13,879 22,198 31,270 
Net income
$32,061 $36,021 $41,905 $68,082 $88,930 
EARNINGS PER SHARE
  
Basic$0.33 $0.37 $0.43 $0.70 $0.92 
Diluted$0.33 $0.37 $0.43 $0.70 $0.92 
WEIGHTED AVERAGE SHARES OUTSTANDING  
Basic95,096,632 94,764,879 94,628,201 94,931,672 94,489,230 
Diluted95,132,789 94,820,132 94,716,205 94,968,160 94,597,559 
18

SELECTED FINANCIAL DATA

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCES AND YIELD DATA
(Unaudited)
 
 Three Months Ended
 June 30, 2025March 31, 2025June 30, 2024
(Dollars in thousands)Average BalanceInterest Income/ExpenseAverage Yield/CostAverage BalanceInterest Income/ExpenseAverage Yield/CostAverage BalanceInterest Income/ExpenseAverage Yield/Cost
Assets
Interest-earning assets:         
Cash and cash equivalents$815,636 $7,649 3.76 %$882,266 $8,279 3.81 %$1,134,736 $13,666 4.84 %
Investment securities3,552,016 31,113 3.50 3,483,680 30,526 3.51 2,964,909 26,841 3.62 
Loans receivable, net (1)(2)
11,923,558 150,419 5.06 11,981,726 148,530 5.03 12,724,545 167,547 5.30 
Total interest-earning assets16,291,210 189,181 4.66 16,347,672 187,335 4.65 16,824,190 208,054 4.97 
Noninterest-earning assets1,727,247 1,739,316 1,771,493 
Total assets$18,018,457 $18,086,988 $18,595,683 
Liabilities and equity
Interest-bearing deposits:
Interest checking$2,864,330 $10,611 1.49 %$2,880,017 $10,669 1.50 %$2,747,972 $10,177 1.49 %
Money market4,728,738 26,983 2.29 4,705,209 26,358 2.27 4,724,572 26,207 2.23 
Savings251,700 212 0.34 258,789 245 0.38 271,812 224 0.33 
Retail certificates of deposit1,747,641 16,950 3.89 1,780,043 18,512 4.22 1,830,516 21,115 4.64 
Wholesale/brokered certificates of deposit283,812 3,620 5.12 300,424 3,789 5.11 542,699 6,506 4.82 
Total interest-bearing deposits9,876,221 58,376 2.37 9,924,482 59,573 2.43 10,117,571 64,229 2.55 
FHLB advances and other borrowings154 2 5.21 211 2 3.84 200,154 2,330 4.68 
Subordinated debentures248,151 4,048 6.48 272,528 4,393 6.45 332,097 5,101 6.14 
Total borrowings248,305 4,050 6.48 272,739 4,395 6.44 532,251 7,431 5.59 
Total interest-bearing liabilities10,124,526 62,426 2.47 10,197,221 63,968 2.54 10,649,822 71,660 2.71 
Noninterest-bearing deposits4,733,981 4,710,940 4,824,002 
Other liabilities195,901 221,981 213,844 
Total liabilities15,054,408 15,130,142 15,687,668 
Stockholders’ equity2,964,049 2,956,846 2,908,015 
Total liabilities and equity$18,018,457 $18,086,988 $18,595,683 
Net interest income$126,755 $123,367 $136,394 
Net interest margin (3)
3.12 %3.06 %3.26 %
Cost of deposits (4)
1.60 1.65 1.73 
Cost of funds (5)
1.69 1.74 1.86 
Cost of non-maturity deposits (6)
1.21 1.20 1.17 
Ratio of interest-earning assets to interest-bearing liabilities160.91 160.31 157.98 
______________________________
(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 fair value net discount accretion of $1.8 million, $1.9 million, and $2.3 million for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, 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.
19

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
LOAN PORTFOLIO COMPOSITION
(Unaudited)
June 30,March 31,December 31,September 30,June 30,
(Dollars in thousands)20252025202420242024
Investor loans secured by real estate
CRE non-owner-occupied$2,084,781 $2,111,115 $2,131,112 $2,202,268 $2,245,474 
Multifamily5,255,040 5,307,484 5,326,009 5,388,847 5,473,606 
Construction and land302,781 302,730 379,143 445,146 453,799 
SBA secured by real estate (1)
27,405 27,571 28,777 32,228 33,245 
Total investor loans secured by real estate7,670,007 7,748,900 7,865,041 8,068,489 8,206,124 
Business loans secured by real estate (2)
CRE owner-occupied1,918,031 1,962,531 1,995,144 2,038,583 2,096,485 
Franchise real estate secured227,080 238,870 255,694 264,696 274,645 
SBA secured by real estate (3)
39,263 42,227 43,978 43,943 46,543 
Total business loans secured by real estate2,184,374 2,243,628 2,294,816 2,347,222 2,417,673 
Commercial loans (4)
Commercial and industrial1,643,977 1,609,225 1,486,340 1,316,517 1,554,735 
Franchise non-real estate secured180,708 194,454 213,357 237,702 257,516 
SBA non-real estate secured7,472 7,546 8,086 8,407 10,346 
Total commercial loans1,832,157 1,811,225 1,707,783 1,562,626 1,822,597 
Retail loans
Single family residential (5)
224,483 230,262 186,739 71,552 70,380 
Consumer1,658 1,964 1,804 1,361 1,378 
Total retail loans226,141 232,226 188,543 72,913 71,758 
Loans held for investment before basis adjustment (6)
11,912,679 12,035,979 12,056,183 12,051,250 12,518,152 
Basis adjustment associated with fair value hedge (7)
(10,600)(13,001)(16,442)(16,153)(28,201)
Loans held for investment11,902,079 12,022,978 12,039,741 12,035,097 12,489,951 
Allowance for credit losses for loans held for investment(170,663)(174,967)(178,186)(181,248)(183,803)
Loans held for investment, net$11,731,416 $11,848,011 $11,861,555 $11,853,849 $12,306,148 
Loans held for sale, at lower of cost or fair value$751 $— $2,315 $— $140 
______________________________
(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 unamortized net purchase premiums of $11.2 million, $11.6 million, $9.1 million, $3.7 million, and $3.8 million, net deferred origination (fees) costs of $(103,000), $850,000, $1.1 million, $1.5 million, and $1.4 million, and unaccreted fair value net purchase discounts of $29.5 million, $31.3 million, $33.2 million, $35.9 million, and $38.6 million as of June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024, and June 30, 2024, respectively.
(7) Represents the basis adjustment associated with the application of hedge accounting on certain loans.




20

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
ASSET QUALITY INFORMATION
(Unaudited)
 June 30,March 31,December 31,September 30,June 30,
(Dollars in thousands)20252025202420242024
Asset quality
Nonaccrual loans - held for investment$26,301 $27,693 $28,031 $39,084 $52,119 
Nonaccrual loans - held for sale— — 825 — — 
Other real estate owned— — — — — 
Nonperforming assets$26,301 $27,693 $28,856 $39,084 $52,119 
Total classified assets (1)
$89,120 $89,185 $107,074 $120,484 $183,833 
Allowance for credit losses170,663 174,967 178,186 181,248 183,803 
Allowance for credit losses as a percent of total nonperforming loans649 %632 %636 %464 %353 %
Nonperforming loans as a percent of loans held for investment0.22 0.23 0.23 0.32 0.42 
Nonperforming assets as a percent of total assets0.15 0.15 0.16 0.22 0.28 
Classified loans to total loans held for investment0.75 0.74 0.88 1.00 1.47 
Classified assets to total assets0.50 0.49 0.60 0.67 1.00 
Net loan (recoveries) charge-offs for the quarter ended
$(349)$(343)$1,430 $2,306 $10,293 
Net loan (recoveries) charge-offs for the quarter to average total loans
— %— %0.01 %0.02 %0.08 %
Allowance for credit losses to loans held for investment (2)
1.43 1.46 1.48 1.51 1.47 
Delinquent loans (3)
   
30 - 59 days$689 $300 $1,009 $2,008 $4,985 
60 - 89 days99 352 349 715 3,289 
90+ days1,259 1,440 1,261 7,143 9,649 
Total delinquency$2,047 $2,092 $2,619 $9,866 $17,923 
Delinquency as a percent of loans held for investment0.02 %0.02 %0.02 %0.08 %0.14 %
______________________________
(1) Includes substandard and doubtful loans, and other real estate owned.
(2) At June 30, 2025, 20% of loans held for investment include a fair value net discount of $29.5 million, or 0.25% of loans held for investment. At March 31, 2025, 21% of loans held for investment include a fair value net discount of $31.3 million, or 0.26% of loans held for investment. At December 31, 2024, 22% of loans held for investment include a fair value net discount of $33.2 million, or 0.28% of loans held for investment. At September 30, 2024, 24% of loans held for investment include a fair value net discount of $35.9 million, or 0.30% of loans held for investment. At June 30, 2024, 25% of loans held for investment include a fair value net discount of $38.6 million, or 0.31% of loans held for investment.
(3) Nonaccrual loans are included in this aging analysis based on the loan’s past due status.

21

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
NONACCRUAL LOANS (1)
(Unaudited)
(Dollars in thousands)Collateral Dependent LoansACLNon-Collateral Dependent LoansACLTotal Nonaccrual LoansNonaccrual Loans With No ACL
June 30, 2025
Investor loans secured by real estate
CRE non-owner-occupied$14,805 $— $— $— $14,805 $14,805 
SBA secured by real estate (2)
380 — — — 380 380 
Total investor loans secured by real estate15,185 — — — 15,185 15,185 
Commercial loans (3)
Commercial and industrial1,241 484 9,730 — 10,971 10,071 
SBA not secured by real estate18 — — — 18 18 
Total commercial loans1,259 484 9,730 — 10,989 10,089 
Retail loans
Single family residential (4)
127 — — — 127 127 
Total retail loans127 — — — 127 127 
Totals nonaccrual loans$16,571 $484 $9,730 $— $26,301 $25,401 
______________________________
(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 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.

22

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
PAST DUE STATUS
(Unaudited)
Days Past Due (7)
(Dollars in thousands)Current30-5960-8990+Total
June 30, 2025
Investor loans secured by real estate
CRE non-owner-occupied$2,084,781 $— $— $— $2,084,781 
Multifamily5,255,040 — — — 5,255,040 
Construction and land302,781 — — — 302,781 
SBA secured by real estate (1)
27,405 — — — 27,405 
Total investor loans secured by real estate7,670,007 — — — 7,670,007 
Business loans secured by real estate (2)
CRE owner-occupied1,918,031 — — — 1,918,031 
Franchise real estate secured227,080 — — — 227,080 
SBA secured by real estate (3)
39,263 — — — 39,263 
Total business loans secured by real estate2,184,374 — — — 2,184,374 
Commercial loans (4)
Commercial and industrial1,642,337 300 99 1,241 1,643,977 
Franchise non-real estate secured180,708 — — — 180,708 
SBA not secured by real estate7,454 — — 18 7,472 
Total commercial loans1,830,499 300 99 1,259 1,832,157 
Retail loans
Single family residential (5)
224,094 389 — — 224,483 
Consumer loans1,658 — — — 1,658 
Total retail loans225,752 389 — — 226,141 
Loans held for investment before basis adjustment (6)
$11,910,632 $689 $99 $1,259 $11,912,679 
______________________________
(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 $10.6 million to the carrying amount of certain loans included in fair value hedging relationships.
(7) Nonaccrual loans are included in this aging analysis based on the loan’s past due status.



23

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
CREDIT RISK GRADES
(Unaudited)
 
(Dollars in thousands)PassSpecial
Mention		Substandard
Doubtful
Total Gross
Loans
June 30, 2025
Investor loans secured by real estate    
CRE non-owner-occupied$2,051,123 $6,835 $26,823 $— $2,084,781 
Multifamily5,242,497 12,543 — — 5,255,040 
Construction and land267,096 35,685 — — 302,781 
SBA secured by real estate (1)
18,580 2,379 6,446 — 27,405 
Total investor loans secured by real estate7,579,296 57,442 33,269 — 7,670,007 
Business loans secured by real estate (2)
CRE owner-occupied1,817,856 67,553 32,622 — 1,918,031 
Franchise real estate secured212,707 12,849 1,524 — 227,080 
SBA secured by real estate (3)
35,998 — 3,265 — 39,263 
Total business loans secured by real estate2,066,561 80,402 37,411 — 2,184,374 
Commercial loans (4)
   
Commercial and industrial1,614,604 13,699 12,789 2,885 1,643,977 
Franchise non-real estate secured178,970 178 1,560 — 180,708 
SBA not secured by real estate6,393 — 1,079 — 7,472 
Total commercial loans1,799,967 13,877 15,428 2,885 1,832,157 
Retail loans
Single family residential (5)
224,356 — 127 — 224,483 
Consumer loans1,658 — — — 1,658 
Total retail loans226,014 — 127 — 226,141 
Loans held for investment before basis adjustment (6)
$11,671,838 $151,721 $86,235 $2,885 $11,912,679 
______________________________
(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 $10.6 million to the carrying amount of certain loans included in fair value hedging relationships.

24

GAAP TO NON-GAAP RECONCILIATIONS

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
(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 the FDIC special assessment is a non-GAAP financial measure derived from GAAP based amounts. We calculate this figure by excluding merger-related expense, 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
 June 30,March 31,June 30,
(Dollars in thousands)202520252024
Net income
$32,061 $36,021 $41,905 
Add: FDIC special assessment(25)25 (161)
Add: merger-related expense6,712 — — 
Less: tax adjustment (1)
1,884 7 (45)
Adjusted net income for average assets$36,864 $36,039 $41,789 
Average assets$18,018,457 $18,086,988 $18,595,683 
ROAA (annualized)
0.71 %0.80 %0.90 %
Adjusted ROAA (annualized)
0.82 %0.80 %0.90 %
______________________________
(1) Adjusted by statutory tax rate
25

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
 June 30,March 31,June 30,
(Dollars in thousands)202520252024
Net income
$32,061 $36,021 $41,905 
Add: amortization of intangible assets expense
2,501 2,566 2,763 
Less: tax adjustment (1)
705 723 781 
Net income for average tangible common equity
33,857 37,864 43,887 
Add: FDIC special assessment(25)25 (161)
Add: merger-related expense
6,712 — — 
Less: tax adjustment (1)
1,884 7 (45)
Adjusted net income for average tangible common equity$38,660 $37,882 $43,771 
Average stockholders’ equity$2,964,049 $2,956,846 $2,908,015 
Less: average intangible assets28,613 31,168 39,338 
Less: average goodwill901,312 901,312 901,312 
Adjusted average tangible common equity$2,034,124 $2,024,366 $1,967,365 
ROAE (annualized)4.33 %4.87 %5.76 %
Adjusted ROAE (annualized)4.97 %4.88 %5.75 %
ROATCE (annualized)6.66 %7.48 %8.92 %
Adjusted ROATCE (annualized)7.60 %7.49 %8.90 %
_____________________________________
(1) Adjusted by statutory tax rate.



26

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, merger-related expense, 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 net 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
June 30,March 31,June 30,
(Dollars in thousands)202520252024
Total noninterest expense$104,376 $100,292 $97,567 
Less: amortization of intangible assets2,501 2,566 2,763 
Less: merger-related expense6,712 — — 
Adjusted noninterest expense95,163 97,726 94,804 
Less: FDIC special assessment(25)25 (161)
Adjusted noninterest expense excluding FDIC special assessment$95,188 $97,701 $94,965 
Net interest income before provision for credit losses$126,755 $123,367 $136,394 
Add: total noninterest income
17,565 21,465 18,222 
Less: net loss from other real estate owned
— — (28)
Less: net loss from debt extinguishment
(1,315)— — 
Adjusted revenue
$145,635 $144,832 $154,644 
Efficiency ratio65.3 %67.5 %61.3 %
Adjusted efficiency ratio excluding FDIC special assessment65.4 %67.5 %61.4 %


27

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.
 June 30,March 31,December 31,September 30,June 30,
(Dollars in thousands, except per share data)20252025202420242024
Total stockholders’ equity$2,975,418 $2,967,089 $2,955,743 $2,943,937 $2,923,764 
Less: intangible assets928,439 930,940 933,506 936,236 938,998 
Tangible common equity$2,046,979 $2,036,149 $2,022,237 $2,007,701 $1,984,766 
Total assets$17,783,172 $18,085,583 $17,903,585 $17,909,643 $18,332,325 
Less: intangible assets928,439 930,940 933,506 936,236 938,998 
Tangible assets$16,854,733 $17,154,643 $16,970,079 $16,973,407 $17,393,327 
Tangible common equity ratio12.14 %11.87 %11.92 %11.83 %11.41 %
Common shares issued and outstanding97,019,91097,069,00196,441,66796,462,76796,434,047
Book value per share$30.67 $30.57 $30.65 $30.52 $30.32 
Less: intangible book value per share9.57 9.59 9.68 9.71 9.74 
Tangible book value per share$21.10 $20.98 $20.97 $20.81 $20.58 

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
June 30,March 31,June 30,
(Dollars in thousands)202520252024
Total deposits interest expense$58,376 $59,573 $64,229 
Less: certificates of deposit interest expense16,950 18,512 21,115 
Less: brokered certificates of deposit interest expense3,620 3,789 6,506 
Non-maturity deposit expense$37,806 $37,272 $36,608 
Total average deposits$14,610,202 $14,635,422 $14,941,573 
Less: average certificates of deposit1,747,641 1,780,043 1,830,516 
Less: average brokered certificates of deposit283,812 300,424 542,699 
Average non-maturity deposits$12,578,749 $12,554,955 $12,568,358 
Cost of non-maturity deposits1.21 %1.20 %1.17 %
28