Company Release - 7/24/2025

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 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.

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