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Pacific Premier Bancorp, Inc. Announces Fourth Quarter 2022 Financial Results and a Quarterly Cash Dividend of $0.33 Per Share

01/26/2023

Company Release - 01/26/2023

Fourth Quarter 2022 Summary

  • Net income of $73.7 million, or $0.77 per diluted share
  • Return on average assets of 1.36%, return on average equity of 10.71%, and return on average tangible common equity([1]) of 16.99%
  • Pre-provision net revenue (“PPNR”) to average assets(1) of 1.89%, annualized, increased from 1.85% in the prior quarter
  • Efficiency ratio(1) of 47.4%, compared with 48.3% in the prior quarter
  • Net interest margin of 3.61%, and core net interest margin(1) of 3.38%
  • Cost of deposits of 0.58%, and cost of core deposits(1) of 0.31%
  • Loan-to-deposit ratio of 84.6%, compared with 84.0% in the prior quarter
  • Nonperforming assets to total assets of 0.14%, and net charge-offs to average loans of 0.03%
  • Total risk-based capital ratio of 15.53% and common equity tier 1 capital ratio of 12.99%
  • Tangible book value per share(1) increased $0.70, or 3.7%, to $19.38 compared to the prior quarter

Irvine, Calif., January 26, 2023 -- Pacific Premier Bancorp, Inc. (NASDAQ: PPBI) (the “Company” or “Pacific Premier”), the holding company of Pacific Premier Bank (the “Bank”), reported net income of $73.7 million, or $0.77 per diluted share, for the fourth quarter of 2022, compared with net income of $73.4 million, or $0.77 per diluted share, for the third quarter of 2022, and net income of $84.8 million, or $0.89 per diluted share, for the fourth quarter of 2021.

For the fourth quarter of 2022, the Company’s return on average assets (“ROAA”) was 1.36%, return on average equity (“ROAE”) was 10.71%, and return on average tangible common equity (“ROATCE”)(1) was 16.99%, compared to 1.35%, 10.57%, and 16.74%, respectively, for the third quarter of 2022 and 1.63%, 11.90%, and 18.66%, respectively, for the fourth quarter of 2021. Total assets as of December 31, 2022 were $21.69 billion, compared to $21.62 billion at September 30, 2022 and $21.09 billion at December 31, 2021.

Steven R. Gardner, Chairman, President, and Chief Executive Officer of the Company, commented, “Our fourth quarter results reflect the benefits of the actions we took over the past several quarters to proactively manage risk and position the balance sheet for higher interest rates. Despite a more challenging operating environment, we continued to deliver solid financial performance, including an increase in pre-provision net revenue(1) and higher returns compared to the prior quarter. Tangible book value per share(1) grew nearly 4% during the fourth quarter, and all of our capital ratios increased.

“We remain committed to our disciplined, consistent approach to new business development, which enabled us to add attractive full banking relationships with high quality commercial clients during the current quarter. With higher interest rates impacting demand for commercial real estate and multifamily loans, coupled with our conservative approach to new loan production, we saw a slight contraction in total loans during the fourth quarter. Our core commercial deposit base remained relatively stable, but the lower level of commercial real estate transactions continued to result in deposit outflows from our commercial escrow and exchange business. We replaced these outflows with additional time deposits of varying maturities, keeping our loan-to-deposit ratio in the mid-80% range.

“As we head into 2023, our strong liquidity and capital levels provide us with optionality as we navigate an uncertain economic environment. Starting in the fourth quarter of 2022, our teams began executing on new initiatives and marketing efforts to expand the products and services we are offering to existing clients and to enhance new client acquisitions, which we expect will drive growth in future periods. As always, we will be here when our clients need us most, and we will maintain our commitment to delivering value to our shareholders, clients, employees, and the communities we serve.”

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([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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