PART I [Financial Statements](index=3&type=section&id=Item%201%20-%20Financial%20Statements) Presents Pacific Premier Bancorp's unaudited consolidated financial statements for Q2 2023, covering financial condition, income, comprehensive income, equity, cash flows, and detailed notes [Consolidated Statements of Financial Condition (Unaudited)](index=3&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition%20%28Unaudited%29) Total assets and liabilities decreased as of June 30, 2023, driven by reduced loans and deposits, while stockholders' equity slightly increased Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $1,463,677 | $1,101,249 | | Investment securities (AFS & HTM) | $3,749,395 | $3,989,116 | | Loans held for investment, net | $13,417,949 | $14,480,647 | | Goodwill | $901,312 | $901,312 | | **Total assets** | **$20,747,883** | **$21,688,017** | | **Liabilities** | | | | Total deposits | $16,539,875 | $17,352,401 | | FHLB advances and other borrowings | $800,000 | $1,000,000 | | **Total liabilities** | **$17,898,749** | **$18,889,628** | | **Stockholders' Equity** | | | | Total stockholders' equity | $2,849,134 | $2,798,389 | | **Total liabilities and stockholders' equity** | **$20,747,883** | **$21,688,017** | [Consolidated Statements of Income (Unaudited)](index=4&type=section&id=Consolidated%20Statements%20of%20Income%20%28Unaudited%29) Net income for Q2 2023 and the six months ended June 30, 2023, decreased year-over-year, primarily due to lower net interest income from increased funding costs Income Statement Highlights (in thousands, except per share data) | Metric | Q2 2023 | Q2 2022 | Six Months 2023 | Six Months 2022 | | :--- | :--- | :--- | :--- | :--- | | Net interest income | $160,092 | $172,765 | $328,702 | $334,604 | | Provision for credit losses | $1,499 | $469 | $4,515 | $917 | | Noninterest income | $20,539 | $22,193 | $41,725 | $48,087 | | Noninterest expense | $100,644 | $98,974 | $201,996 | $196,622 | | **Net income** | **$57,636** | **$69,803** | **$120,198** | **$136,707** | | **Diluted EPS** | **$0.60** | **$0.73** | **$1.26** | **$1.44** | [Consolidated Statements of Comprehensive Income (Loss) (Unaudited)](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29%20%28Unaudited%29) Comprehensive income significantly improved in Q2 2023 compared to a loss in Q2 2022, despite lower net income, due to a smaller other comprehensive loss related to available-for-sale securities Comprehensive Income (Loss) Summary (in thousands) | Component | Q2 2023 | Q2 2022 | Six Months 2023 | Six Months 2022 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $57,636 | $69,803 | $120,198 | $136,707 | | Other Comprehensive (Loss), net of tax | $(12,738) | $(70,785) | $(10,220) | $(207,156) | | **Comprehensive Income (Loss)** | **$44,898** | **$(982)** | **$109,978** | **$(70,449)** | [Consolidated Statements of Stockholders' Equity (Unaudited)](index=6&type=section&id=Consolidated%20Statements%20of%20Stockholders%27%20Equity%20%28Unaudited%29) Total stockholders' equity increased from year-end 2022 to June 30, 2023, driven by net income, partially offset by cash dividends and other comprehensive loss - For the six months ended June 30, 2023, stockholders' equity increased by **$50.7 million**, from **$2.798 billion** to **$2.849 billion**[17](index=17&type=chunk) - Key changes in equity for the first half of 2023 included: +**$120.2 million** from net income, -**$63.0 million** from cash dividends, and -**$10.2 million** from other comprehensive loss[17](index=17&type=chunk) [Consolidated Statements of Cash Flows (Unaudited)](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20%28Unaudited%29) Net cash increased for the six months ended June 30, 2023, driven by operating and investing activities, partially offset by financing outflows from decreased deposits Net Cash Flow Summary (Six Months Ended June 30, in thousands) | Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $176,409 | $210,378 | | Net cash provided by (used in) investing activities | $1,267,050 | $(482,829) | | Net cash (used in) provided by financing activities | $(1,081,031) | $940,546 | | **Net increase in cash and cash equivalents** | **$362,428** | **$668,095** | [Notes to Consolidated Financial Statements (Unaudited)](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20%28Unaudited%29) Provides detailed disclosures supporting financial statements, including new accounting standards, portfolio details, credit quality, ACL, goodwill, debt, and fair value measurements - The company adopted ASU 2022-02 on January 1, 2023, which eliminated the accounting guidance for Troubled Debt Restructurings (TDRs) and introduced new disclosure requirements for loan modifications to borrowers experiencing financial difficulty[32](index=32&type=chunk) - The use of the London Interbank Offered Rate (LIBOR) was discontinued after June 30, 2023, with the company transitioning to the Secured Overnight Financing Rate (SOFR) as its primary alternative reference rate[37](index=37&type=chunk) - During the first half of 2023, the company transferred **$410.7 million** of Available-for-Sale (AFS) collateralized mortgage obligations to Held-to-Maturity (HTM) securities to be held to maturity[46](index=46&type=chunk) - The Allowance for Credit Losses (ACL) for loans was **$192.3 million** as of June 30, 2023, compared to **$195.7 million** at year-end 2022, with the ACL for off-balance sheet commitments at **$24.5 million**[118](index=118&type=chunk)[122](index=122&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=61&type=section&id=Item%202%20-%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, highlighting decreased Q2 2023 net income due to margin compression, and outlines strategic actions to enhance liquidity and maintain strong capital ratios [General and Recent Developments](index=63&type=section&id=General%20and%20Recent%20Developments) The company operates 59 branches in the Western U.S., focusing on small- to middle-market businesses, and is actively monitoring the impact of inflation, rising rates, and bank failures on its operations - The company identifies key risks from the current economic environment, including pressure on loan growth, potential credit quality deterioration, the need for higher provisions for credit losses (ACL), and increased deposit costs and competition[208](index=208&type=chunk)[209](index=209&type=chunk) - In response to market conditions, the company has taken strategic actions to enhance liquidity, including increasing FHLB borrowings, using brokered deposits, and potentially liquidating AFS securities[209](index=209&type=chunk) [Results of Operations](index=69&type=section&id=Results%20of%20Operations) Q2 2023 net income decreased sequentially and year-over-year, primarily due to net interest margin compression from rising funding costs, alongside minor changes in noninterest items Quarterly Performance Summary (in thousands, except per share data) | Metric | Q2 2023 | Q1 2023 | Q2 2022 | | :--- | :--- | :--- | :--- | | Net Income | $57,636 | $62,562 | $69,803 | | Diluted EPS | $0.60 | $0.66 | $0.73 | | Net Interest Income | $160,092 | $168,610 | $172,765 | | Net Interest Margin | 3.33% | 3.44% | 3.49% | | Provision for Credit Losses | $1,499 | $3,016 | $469 | - Net interest income decreased by **$12.7 million**, or **7.3%**, compared to Q2 2022, primarily due to higher cost of funds, an increase in brokered CDs, and lower average loan balances[228](index=228&type=chunk) - Noninterest expense increased by **$1.7 million** compared to Q2 2022, driven by a **$5.1 million** increase in deposit expense (due to higher earnings credit rates) and higher FDIC insurance premiums, partially offset by a **$4.1 million** decrease in compensation and benefits[248](index=248&type=chunk) [Financial Condition](index=80&type=section&id=Financial%20Condition) Total assets and deposits decreased at June 30, 2023, driven by lower loans and non-maturity deposit outflows, while nonperforming assets declined and tangible common equity improved - Loans held for investment decreased by **$1.07 billion** (**7.3%**) since year-end 2022, reflecting a disciplined approach to credit risk, pricing, and lower loan demand[264](index=264&type=chunk) - Nonperforming assets fell to **$17.4 million** (**0.08% of total assets**) at Q2 2023, down from **$30.9 million** (**0.14% of total assets**) at year-end 2022[277](index=277&type=chunk) - Deposits decreased by **$812.5 million** since year-end 2022, with non-maturity deposits falling by **$1.39 billion** while time deposits grew; uninsured and uncollateralized deposits represented **32%** of total deposits[305](index=305&type=chunk)[310](index=310&type=chunk) - Total borrowings decreased by **$199.7 million** to **$1.13 billion**, due to the maturity of **$200.0 million** in FHLB term advances[311](index=311&type=chunk) [Capital Resources and Liquidity](index=97&type=section&id=Capital%20Resources%20and%20Liquidity) The company maintains strong liquidity and capital, with substantial available liquidity covering uninsured deposits, and all regulatory capital ratios significantly exceeding 'well capitalized' minimums - As of June 30, 2023, the company had unused borrowing capacity of **$8.53 billion**, including **$4.75 billion** from the FHLB and access to the FRB's discount window and Bank Term Funding Program[312](index=312&type=chunk)[315](index=315&type=chunk) - The company declared a quarterly cash dividend of **$0.33 per share** on July 25, 2023, with no shares repurchased under the stock repurchase program during the first half of 2023[322](index=322&type=chunk)[323](index=323&type=chunk) Regulatory Capital Ratios (Consolidated) | Ratio | June 30, 2023 | Minimum Required (with buffer) | | :--- | :--- | :--- | | Common equity tier 1 capital ratio | 14.34% | 7.00% | | Tier 1 capital ratio | 14.34% | 8.50% | | Total capital ratio | 17.24% | 10.50% | | Tier 1 leverage ratio | 10.90% | 4.00% | [Quantitative and Qualitative Disclosures About Market Risk](index=102&type=section&id=Item%203%20-%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk, with models indicating an asset-sensitive position where Net Interest Income and Economic Value of Equity are projected to increase in rising rate scenarios Net Interest Income (NII) Sensitivity Analysis (at June 30, 2023) | Change in Rates (bps) | $ Change (12-mo) | % Change (12-mo) | | :--- | :--- | :--- | | +200 | $23,275 | 3.6% | | +100 | $12,887 | 2.0% | | Static | $0 | 0.0% | | -100 | $(24,200) | -3.8% | Economic Value of Equity (EVE) Sensitivity Analysis (at June 30, 2023) | Change in Rates (bps) | $ Change | % Change | | :--- | :--- | :--- | | +200 | $58,396 | 1.7% | | +100 | $57,790 | 1.7% | | Static | $0 | 0.0% | | -100 | $(117,568) | -3.5% | [Controls and Procedures](index=104&type=section&id=Item%204%20-%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2023, with no material changes in internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[340](index=340&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended June 30, 2023, that have materially affected, or are reasonably likely to materially affect, the company's internal controls[341](index=341&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=105&type=section&id=Item%201%20-%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings, none expected to materially impact its financial condition or results of operations - Management believes that no legal proceedings occurring in the ordinary course of business will have a material adverse impact on the Company's results of operations or financial condition[344](index=344&type=chunk) [Risk Factors](index=105&type=section&id=Item%201A%20-%20Risk%20Factors) No material changes to the company's risk factors have occurred since the 2022 Form 10-K and Q1 2023 Form 10-Q disclosures - No material changes to the risk factors previously described in the 2022 Form 10-K and Q1 2023 Form 10-Q have occurred[345](index=345&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=105&type=section&id=Item%202%20-%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase common stock during Q2 2023, with 4,245,056 shares remaining available under the authorized repurchase program as of June 30, 2023 - During the second quarter of 2023, the Company did not repurchase any shares of its common stock[346](index=346&type=chunk) - The maximum number of shares that may yet be purchased under the publicly announced plan is **4,245,056** as of June 30, 2023[348](index=348&type=chunk) [Defaults Upon Senior Securities](index=105&type=section&id=Item%203%20-%20Defaults%20Upon%20Senior%20Securities) None reported [Mine Safety Disclosures](index=105&type=section&id=Item%204%20-%20Mine%20Safety%20Disclosures) Not applicable [Other Information](index=105&type=section&id=Item%205%20-%20Other%20Information) No officer or director adopted or terminated Rule 10b5-1 trading plans or other non-Rule 10b5-1 trading arrangements during Q2 2023 - No officer or director adopted or terminated a Rule 10b5-1 trading plan during the quarter ended June 30, 2023[351](index=351&type=chunk) [Exhibits](index=106&type=section&id=Item%206%20-%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications by the CEO and CFO, and XBRL data files

Financial Data and Key Metrics Changes - The company reported earnings per share of $0.60, with a return on average assets of 1.09% and a return on tangible common equity of 12.7% [11][18] - Total revenue for the second quarter was $180.6 million, while non-interest expense was $100.6 million, resulting in an efficiency ratio of 54.1% [18] - The tangible common equity ratio increased to 9.59%, with CET1 and total risk-based capital ratios rising by 80 and 91 basis points to 14.34% and 17.24%, respectively [11][29] Business Line Data and Key Metrics Changes - The loan portfolio contracted by $562 million, driven by prepayment sales and maturities, with lower loan originations in the first half of 2023 [26] - Non-interest income decreased to $20.5 million, primarily due to lower trust income, but was partially offset by higher other income and loan sale gains [20] - The average cost of non-maturity deposits was 71 basis points, with non-interest bearing deposits comprising 36% of total deposits [10] Market Data and Key Metrics Changes - The company experienced a decline in average non-maturity deposits, attributed to clients seeking higher returns and seasonality around tax payments [12] - Uninsured and uncollateralized deposits decreased to 32% of total deposits, but deposit balances grew later in the quarter and continued through July [12][13] - The average yield on the investment portfolio increased by 7 basis points to 2.64% [27] Company Strategy and Development Direction - The company is focused on maintaining a conservative and disciplined approach to managing the business while pursuing new client acquisition and enhancing existing relationships [33] - There is an emphasis on capital and liquidity management, with a strategy to moderate growth rates and hedge interest rate risk [6][10] - The company remains open to M&A opportunities that complement its franchise and maximize long-term shareholder value [35] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging economic environment but expressed confidence in the company's ability to navigate through it due to proactive risk management [5][6] - There is cautious optimism regarding loan growth in the second half of the year, contingent on acceptable risk-adjusted returns [42][73] - The company is prepared for various market dynamics and potential economic downturns, maintaining flexibility to capitalize on opportunities [34] Other Important Information - The company’s asset quality remains solid, with nonperforming assets at just 8 basis points of total assets and classified assets declining to 0.58% [16][30] - The company sold $77 million of non-relationship loan participations during the quarter, prioritizing liquidity [27] Q&A Session Summary Question: Trends in non-interest bearing deposits - Management confirmed that trends in non-maturity deposits, including non-interest bearing deposits, have stabilized towards the end of the quarter and into July [38][39] Question: Loan growth outlook for the second half of the year - Management indicated that while there is a slowing in prepayments and paydowns, they remain cautious about extending credit unless it meets risk-adjusted return thresholds [42][73] Question: M&A activity and ideal targets - Management noted that while conversations around M&A have picked up, they remain focused on relationship-based banks primarily on the West Coast [45][46] Question: NIM outlook and hedges contribution - Management acknowledged continued pressure on net interest margin due to higher funding costs but expects to mitigate this through strategic actions [56][60] Question: Loan portfolio size and growth expectations - Management anticipates that loan portfolio compression will slow in the second half of the year, with potential for incremental growth if risk-adjusted thresholds are met [71][73]

Pacific Premier Bancorp Inc. (NASDAQ:PPBI) Q1 2023 Results Conference Call April 27, 2023 12:00 PM ET Company Participants Steven Gardner - Chairman, President and CEO Ronald Nicolas - Senior EVP and CFO Conference Call Participants Matthew Clark - Piper Sandler Chris McGratty - KBW Gary Tenner - D.A. Davidson Andrew Terrell - Stephens Operator Good day, everyone, and welcome to the Pacific Premier Bancorp Q1 2023 Conference Call. [Operator Instructions] Please also note today's event is being recorded. An ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission File Number 0-22193 (Exact name of registrant as specified in its charter) Delaware 33-0743196 (State or other jurisdiction of inc ...

Financial Performance - Tangible book value per share has more than doubled since 2013, reflecting successful execution of the overall growth strategy[35] - The quarterly cash dividend was increased to $0.33 per share in January 2023, up from an annual cash dividend of $1.32 per share in 2022[42] - The annualized common equity cash dividend was $1.32 per share in 2022, an increase of 2% from $1.29 per share in 2021[113] - The Corporation anticipates continuing to pay quarterly cash dividends, subject to the discretion of the Board of Directors and dependent on operating results and financial condition[113] - The amount available for distribution from the Bank to the Corporation was approximately $459.5 million at December 31, 2022[115] Regulatory Compliance - The company is subject to extensive regulation and supervision by federal and state regulators, impacting operations and capital requirements[79][80] - The Dodd-Frank Act has increased the regulatory burden and compliance costs for the company[84] - The Company implemented the CECL model starting January 1, 2020, and opted to phase in the full effect of CECL on regulatory capital over a five-year transition period[104] - The Basel III framework requires a minimum CET1 ratio of 4.5%, a Tier 1 capital ratio of 6.0%, and a total capital ratio of 8.0%, plus the capital conservation buffer[96] - The federal banking regulators have the authority to set individual minimum capital requirements for specific institutions above the standard guidelines[99] Capital and Liquidity - The Company had outstanding subordinated debentures totaling $331.2 million as of December 31, 2022, with $283.2 million qualifying as Tier 2 capital[97] - As of December 31, 2022, the Bank and Corporation exceeded all regulatory capital requirements, maintaining a Common Equity Tier 1 (CET1) capital ratio above the minimum requirement of 7.0%[107] - The minimum capital conservation buffer has been phased in over four years, reaching 2.50% by 2019, which is part of the overall capital requirements under Basel III[94] - The Company and the Bank have elected to exclude Accumulated Other Comprehensive Income (AOCI) from CET1 capital as permitted by Basel III[95] - The company is subject to capital adequacy standards, and failure to meet these could restrict activities and capital actions such as paying dividends or repurchasing securities[164] Loan and Credit Quality - The largest aggregate outstanding balance of loans to one borrower was $224.5 million as of December 31, 2022, primarily comprised of an asset-based line of credit[50] - Total nonperforming assets amounted to $30.9 million, or 0.14% of total assets, with net loan charge-offs increasing to $10.6 million in 2022 from $3.2 million in 2021[165] - The company reported a provision expense for loan losses of $8.5 million in 2022, a significant decrease from a provision recapture of $67.1 million in 2021[165] - Approximately 59% of the aggregate outstanding principal of the Company's loans as of December 31, 2022, is secured by real estate located within California[143] - The processes used to estimate the allowance for credit losses require complex judgments, which may be adversely affected by economic conditions[140] Economic Environment and Risks - The economic environment poses significant challenges, with potential adverse effects on the Company's customers' ability to repay loans due to financial stress[139] - Elevated inflation could lead to increased costs for business customers, impacting their profitability and potentially increasing default rates on loans[141] - The ongoing COVID-19 pandemic continues to create uncertainty, affecting economic conditions and the Company's operations[145] - The Company is closely monitoring the impact of military conflicts and geopolitical events on financial markets[142] - Liquidity risk remains a concern, with potential adverse effects on financial condition due to market disruptions or regulatory actions impacting access to funding sources[160] Employee and Diversity - As of December 31, 2022, the company had 1,430 full-time equivalent employees[66] - 49% of employees in vice president and above roles were female, and 42% were from a minority group[68] - The aggregate percentage of women in the entire workforce was 60%, and the aggregate percentage of minorities was 53%[68] - The company offers a comprehensive total compensation package, including medical, dental, and vision benefits, as well as a 401(k) plan with a competitive company match[71] Cybersecurity and Operational Risks - The Bank maintains a comprehensive cybersecurity strategy, including regular employee training and incident response plans to mitigate risks[53] - Cybersecurity remains a priority, with ongoing enhancements to protect sensitive data against evolving threats, although no successful cyber-attacks have been reported to date[176] - The company incurs costs to replace compromised cards and address fraudulent transaction activities when clients fall victim to cyber-attacks[178] - The company is exposed to risks from operational errors and reliance on automated systems, which could lead to financial loss or liability[202] Competition and Market Position - The company is focused on the commercial banking business in the Western Region of the U.S., competing with larger regional and national banks[72][73] - The company differentiates itself through personalized relationship banking services and efficient decision-making in lending[76] - The company faces strong competition from various financial institutions, including national banks, regional banks, community banks, and fintech companies, which may adversely affect its ability to grow loans and deposits[200] - Competition for qualified personnel is intense, and the inability to attract and retain talent could materially affect the company's financial condition and results of operations[199] Acquisitions and Goodwill - The company has completed eleven acquisitions since 2010, including Opus Bank, which had approximately $8 billion in total assets at the time of acquisition[203] - The company issued approximately 34.4 million shares of common stock as transaction consideration in the acquisition of Opus Bank, which may lead to dilution of stockholder value[206] - As of December 31, 2022, the company had approximately $956.9 million in goodwill and intangible assets, with $901.3 million attributed to acquisitions since 2011[208] Investment and Securities - As of December 31, 2022, available-for-sale securities totaled $2.60 billion, representing 12% of total assets, with an effective duration of 3.1 years[39] - The effective duration of the securities portfolio is 3.1 years, with approximately 95% of investments rated "A1 - A3" or higher[39] - As of December 31, 2022, the fair value of available-for-sale securities was $2.60 billion, with an aggregate net unrealized loss of $303.7 million, contributing to a decline in stockholders' equity by $87.9 million compared to the previous year[154] - The total stockholders' equity decreased by $87.9 million from December 31, 2021, primarily due to declines in the estimated fair value of available-for-sale securities during 2022[154]

Pacific Premier Bancorp, Inc. (NASDAQ:PPBI) Q4 2022 Earnings Conference Call January 26, 2023 12:00 PM ET Company Participants Steve Gardner - Chairman & Chief Executive Officer Ron Nicolas - Chief Financial Officer Conference Call Participants David Feaster - Raymond James Matthew Clark - Piper Sandler Andrew Leischner - KBW Andrew Terrell - Stephens Gary Tenner - D.A. Davidson Operator Good morning, and welcome to the Pacific Premier Bancorp Fourth Quarter 2022 Conference Call. All participants will be in ...

Financial Performance Highlights - Net income reached $737 million, translating to $077 per diluted share[12] - The Return on Average Assets (ROAA) stood at 136% and Return on Average Tangible Common Equity (ROATCE) was 1699%[12] - Pre-provision net revenue (PPNR) amounted to $1027 million, with a PPNR ROAA of 189%[12] - The efficiency ratio was 474%[12] Balance Sheet and Capital Strength - Total assets were $217 billion[10] - Loans held for investment (HFI) totaled $147 billion[10, 12] - The tangible common equity to tangible assets ratio was 888%[10, 12] - Tier 1 capital ratio was 1299% and the total capital ratio was 1553%[10, 12] Deposit and Loan Portfolio - Core deposits totaled $148 billion, representing 856% of total deposits[12] - Non-interest bearing deposits accounted for 363% of total deposits[12] - The loan portfolio amounted to $147 billion[12]

Financial Performance - Net income for the three months ended September 30, 2022, was $73.36 million, a decrease of 18.6% compared to $90.09 million for the same period in 2021[12]. - Basic earnings per share for the three months ended September 30, 2022, was $0.77, compared to $0.95 for the same period in 2021, reflecting a decline of 18.9%[12]. - Comprehensive income for the nine months ended September 30, 2022, was $(63.181) million, a significant decline from $195.942 million for the same period in 2021[14]. - Net income for the nine months ended September 30, 2022, was $210,070, a decrease of 16.6% compared to $255,058 for the same period in 2021[23]. - The company reported a provision for credit losses of $1.08 million for the three months ended September 30, 2022, compared to a reversal of $19.73 million for the same period in 2021[12]. Asset and Equity Changes - Total assets increased to $21.62 billion as of September 30, 2022, compared to $21.09 billion at December 31, 2021, reflecting a growth of 2.5%[10]. - Total stockholders' equity decreased to $2.74 billion as of September 30, 2022, from $2.89 billion at December 31, 2021, a decline of 5.2%[10]. - The total stockholders' equity as of September 30, 2022, was $2.735 billion, a decrease from $2.886 billion at the end of 2021[16]. Income and Expense Analysis - Net interest income before provision for credit losses was $181.11 million for the three months ended September 30, 2022, up from $169.07 million for the same period in 2021, representing an increase of 7.1%[12]. - Noninterest income totaled $20.16 million for the three months ended September 30, 2022, down from $30.10 million for the same period in 2021, a decrease of 33.1%[12]. - Total noninterest expense increased to $100.87 million for the three months ended September 30, 2022, compared to $96.04 million for the same period in 2021, an increase of 5.9%[12]. Credit Losses and Provisions - The allowance for credit losses decreased slightly to $195.55 million as of September 30, 2022, from $197.75 million at December 31, 2021[10]. - The company reported a provision for credit losses of $1,994, a significant improvement compared to a provision of $(56,228) in the prior year[23]. - The ACL for loans held for investment decreased by $526,000, attributed to $1.1 million in net charge-offs and a $546,000 provision for credit losses[169]. Loan Portfolio and Commitments - The total loan portfolio as of September 30, 2022, was $14.9 billion, an increase from $14.3 billion at December 31, 2021, with a net allowance for credit losses of $195.5 million[113]. - The Company reported total unfunded loan commitments of $2.82 billion as of September 30, 2022, compared to $2.51 billion at December 31, 2021[113]. - The largest aggregate outstanding balance of loans to one borrower was $257.3 million as of September 30, 2022, primarily comprised of an asset-based line of credit[119]. Investment Securities - The total amortized cost of AFS investment securities was $2,985.4 million with a fair value of $2,661.1 million as of September 30, 2022, reflecting a gross unrealized loss of $324.3 million[89]. - The Company reported a net unrealized loss on AFS investment securities of $324.3 million as of September 30, 2022, compared to a net unrealized loss of $4.7 million at December 31, 2021[92]. - The total investment securities, including both AFS and HTM, reached $4,370,984,000 with a fair value of $3,716,266,000 as of September 30, 2022[106]. Economic and Market Conditions - Economic forecasts used in the ACL model include scenarios for rising interest rates and ongoing inflationary pressures, impacting future cash flow expectations[162]. - Key economic variables influencing the ACL calculation include the U.S. unemployment rate, U.S. real GDP growth, and CRE prices[164]. Goodwill and Intangible Assets - As of September 30, 2022, the Company reported goodwill of $901.3 million, unchanged from December 31, 2021, with adjustments of $2.7 million related to the Opus acquisition recorded in 2021[173][174]. - Other intangible assets decreased to $59.0 million as of September 30, 2022, from $69.6 million at December 31, 2021, primarily due to amortization[175].

Pacific Premier Bancorp, Inc. (NASDAQ:PPBI) Q3 2022 Earnings Conference Call October 20, 2022 12:00 PM ET Company Participants Steven Gardner - Chairman and CEO Ronald Nicolas - CFO Conference Call Participants David Feaster - Raymond James Matthew Clark - Piper Sandler Andrew Leischner - KBW Gary Tenner - D.A. Davidson Andrew Terrell - Stephens Inc. Operator Good day and welcome to the Pacific Premier Third Quarter 2022 Earnings Conference Call. [Operator Instructions] Please note this event is being recor ...

Financial Performance - The company reported net income of $73.4 million, or $0.77 per diluted share, for Q3 2022[13] - Return on Average Assets (ROAA) was 1.35%, and Return on Average Tangible Common Equity (ROATCE) was 16.74%[9, 13] - Pre-provision net revenue ("PPNR") reached $100.4 million, with a PPNR ROAA of 1.85%[13] - The efficiency ratio was 48.3%[9, 13] Balance Sheet & Capital - Total assets were $21.6 billion[9] - Loans held for investment (HFI) amounted to $15.0 billion[9, 13] - Core deposits totaled $15.9 billion, representing 89.5% of total deposits[13] - Non-interest bearing deposits accounted for 38.2% of total deposits[13] - Tangible common equity to tangible assets ratio increased to 8.59%, and the total capital ratio increased to 14.83%[9, 13] Asset Quality - Nonperforming assets were 0.28% of total assets[9, 13] - The allowance for credit losses (ACL) for loans HFI was $195.5 million, or 1.31% of loans[13]