Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nasdaq  >  Pacific Premier Bancorp, Inc.    PPBI

PACIFIC PREMIER BANCORP, INC.

(PPBI)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector news

Pacific Premier Bancorp : February 2020 Investor Presentation

share with twitter share with LinkedIn share with facebook
02/12/2020 | 06:06pm EDT

Investor Presentation

Fourth Quarter 2019

Steve Gardner Chairman, President & Chief Executive Officer sgardner@ppbi.com 949-864-8000

FORWARD LOOKING STATEMENTS AND

WHERE TO FIND MORE INFORMATION

Forward Looking Statements

This investor presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the financial condition, results of operations, business plans and the future performance of Pacific Premier Bancorp, Inc. ("PPBI"), including its wholly-owned subsidiary Pacific Premier Bank ("Pacific Premier"), Opus Bank ("Opus"), including its wholly-owned subsidiary PENSCO Trust Company ("PENSCO"), and the proposed acquisition. Words such as "anticipates," "believes," "estimates," "expects," "forecasts," "intends," "plans," "projects," "could," "may," "should," "will" or other similar words and expressions are intended to identify these forward-looking statements. These forward-looking statements are based on PPBI's and Opus's current expectations and assumptions regarding PPBI's and Opus's businesses, the economy, and other future conditions. Because forward- looking statements relate to future results and occurrences, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. Many possible events or factors could affect PPBI's or Opus's future financial results and performance and could cause actual results or performance to differ materially from anticipated results or performance. Such risks and uncertainties include, among others: the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the definitive agreement and plan of reorganization by and among PPBI, Pacific Premier and Opus, the outcome of any legal proceedings that may be instituted against PPBI or Opus, delays in completing the transaction, the failure to obtain necessary regulatory approvals (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the transaction) and shareholder approvals or to satisfy any of the other conditions to the transaction on a timely basis or at all, the possibility that the anticipated benefits of the transaction are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors in the areas where PPBI and Opus do business, the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events, diversion of management's attention from ongoing business operations and opportunities, potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the transaction, the ability to complete the transaction and integration of Pacific Premier and Opus successfully, and the dilution caused by PPBI's issuance of additional shares of its capital stock in connection with the transaction. Except to the extent required by applicable law or regulation, each of PPBI and Opus disclaims any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments. Further information regarding PPBI, Opus and factors which could affect the forward-looking statements contained herein can be found in PPBI's Annual Report on Form 10-K for the fiscal year ended December 31, 2018, its Quarterly Reports on Form 10-Q for the periods ended March 31, 2019, June 30, 2019 and September 30, 2019, and its other filings with the SEC, and in Opus's Annual Report on Form 10-K for the fiscal year ended December 31, 2018, its Quarterly Reports on Form 10-Q for the periods ended March 31, 2019, June 30, 2019 and September 30, 2019, and its other filings with the Federal Deposit Insurance Corporation ("FDIC").

Additional Information About the Merger and Where to Find It

In connection with the proposed acquisition transaction, a registration statement on Form S-4 will be filed with the SEC that will include a joint proxy statement/prospectus filed with the SEC and the FDIC to be distributed to the shareholders of Opus and PPBI in connection with their votes on the acquisition. INVESTORS AND SECURITY HOLDERS ARE ENCOURAGED TO READ THE REGISTRATION STATEMENT AND JOINT PROXY STATEMENT/PROSPECTUS WHEN THEY BECOME AVAILABLE (AND ANY OTHER DOCUMENTS FILED WITH THE SEC OR THE FDIC IN CONNECTION WITH THE TRANSACTION OR INCORPORATED BY REFERENCE INTO THE JOINT PROXY STATEMENT/PROSPECTUS) BECAUSE SUCH DOCUMENTS WILL CONTAIN IMPORTANT INFORMATION REGARDING THE PROPOSED MERGER AND RELATED MATTERS. The final joint proxy statement/prospectus will be mailed to shareholders of Opus and PPBI. Investors and security holders will be able to obtain the documents, and any other documents PPBI has filed with the SEC, free of charge at the SEC's website, www.sec.gov or by accessing PPBI's website at www.ppbi.com under the "Investors" link and then under the heading "SEC Filings". Investors and security holders will be able to obtain the documents, and any other documents Opus has filed with the FDIC, free of charge at Opus's website at www.opusbank.com under the tab "Investor Relations" and then under the heading "Presentations & Filings". In addition, documents filed with the SEC by PPBI or with the FDIC by Opus will be available free of charge by (1) writing PPBI at 17901 Von Karman Avenue, Suite 1200, Irvine, CA 92614, Attention: Investor Relations, or (2) writing Opus at 19900 MacArthur Boulevard, 12th Floor, Irvine, CA 92612, Attention: Investor Relations.

Before making any voting or investment decision, shareholders of PPBI and Opus are urged to read carefully the entire registration statement and joint proxy statement/prospectus when they become available, including any amendments thereto, because they will contain important information about the proposed transaction, PPBI and Opus. Free copies of these documents may be obtained as described above.

The directors, executive officers and certain other members of management and employees of PPBI may be deemed to be participants in the solicitation of proxies in connection with the proposed transaction from the shareholders of PPBI. Information about PPBI's directors and executive officers is included in the proxy statement for its 2019 annual meeting of PPBI's shareholders, which was filed with the SEC on April 9, 2019.

The directors, executive officers and certain other members of management and employees of Opus may also be deemed to be participants in the solicitation of proxies in connection with the proposed transaction from the shareholders of Opus. Information about the directors and executive officers of Opus is included in the proxy statement for its 2019 annual meeting of Opus shareholders, which was filed with the FDIC on March 14, 2019. Additional information regarding the interests of those participants and other persons who may be deemed participants in the transaction may be obtained by reading the joint proxy statement/prospectus regarding the proposed acquisition when it becomes available. Free copies of this document may be obtained as

described above.

2

CORPORATE OVERVIEW

Headquarters

Irvine, CA

Exchange/Listing

NASDAQ: PPBI

Market Cap

$1.81 Billion(1)

Average Daily Volume

344,440 Shares(2)

Outstanding Shares

59,528,249(1)

Dividend Yield

3.29%(1)(3)

# of Research Analysts

6 Analysts

Focus

Small & Mid-Market Businesses

Total Assets

$11.78 Billion(4)

Branch Network

41 Full-Service Branch Locations

1.

Market data as of February 6, 2020

2.

3-month average as of February 6, 2020

3.

Annualized

4.

As of 12/31/2019

© 2019 Pacific Premier Bancorp, Inc. | All rights reserved

3

GEOGRAPHIC FOOTPRINT

Premier banking franchise in the Western U.S. - well-positioned for further expansion

36

branches

3

branches

Southern California and

Arizona (Phoenix and

Central Coast California

Tucson)

1

branch

1

branch

Las Vegas, Nevada

Vancouver, Washington

California Footprint

Franchise Footprint

© 2019 Pacific Premier Bancorp, Inc. | All rights reserved

4

HIGHLIGHTS - Q4 2019

Strong, consistent financial returns and profile

Earnings

  • Net income of $41.1 million or $0.69 per diluted share
  • ROAA of 1.42%, and ROATCE of 15.89%
  • Efficiency ratio of 51.9% (1)
  • Net interest margin of 4.33%; core net interest margin of 4.10% (2)

Loans and Asset Quality

  • Loan portfolio of $8.7 billion, a decrease of $35.2 million, or 0.4%, from Q3 2019
  • New loan commitments of $556.3 million for the quarter at a 4.77% weighted average rate
  • Total delinquency as a percent of loans held for investment of 0.22%
  • Nonperforming assets as a percent of total assets of 0.08%
  • Classified assets to total assets of 0.39%

Deposits

  • Total deposits of $8.9 billion, non-maturity deposits equal 88% of total deposits, NIBD represent 43%
  • Non-maturitydeposit growth of $335.3 million or 18% annualized
  • Cost of funds decreased to 0.71% from 0.86% in Q3 2019
  • Cost of deposits decreased to 0.58% from 0.71% in Q3 2019
  • Cost of deposits at December 31, 2019 of 0.53%

Capital

  • Tangible book value per share of $18.84, 11% increase over 12/31/18
  • Increased quarterly cash dividend from $0.22 per share to $0.25 per share, payable in Q1 2020
  • Announced a new $100 million buy-back authorization in Q4 2019
  1. Represents the ratio of noninterest expense less other real estate owned operations, core deposit intangible amortization and merger-related expenses to the sum of net interest income before provision for loan losses and total noninterest income, less gain / (loss) on sales of securities, OTTI impairment, gain / (loss) of other real estate owned, and gain / (loss) from debt extinguishment
  2. Please refer to non-U.S. GAAP reconciliation in appendix

© 2019 Pacific Premier Bancorp, Inc. | All rights reserved

5

VALUE CREATION STRATEGY

Increase EPS and TBV by growing scale and operating leverage

Expand our market presence through disciplined organic and acquisitive growth

  • Target ROAA of 1.50%
  • Target ROATCE of 17% - 18%

Organic Growth

Focus on small and middle market commercial businesses

  • Revenues of $5 - $250 million
  • Emphasis on full banking relationships
  • Full suite of commercial and SMID business products and services
  • Complementary business centric nationwide lines of business:
    • HOA Management, QSR Franchise, SBA
  • Disciplined sales process utilizing our customized Salesforce technology

Acquisitive Growth

Target commercial banks and specialized lines of business

  • Complementary geography / relationship focused / product expansion
  • Attractive deposit profile with emphasis on non-maturity deposits
  • Disciplined acquisition criteria:
    • Accretive to EPS 1st full year
    • < 2 years TBV dilution payback
    • +15% IRR
  • Solid track record of delivering value for shareholders

© 2019 Pacific Premier Bancorp, Inc. | All rights reserved

6

ACQUISITION HISTORY

PPBI acquisitions have consistently enhanced franchise value

  • Over the last 6 years, TBVPS has grown 13% compounded annually
  • Assets have grown 38% compounded annually since 2013

Acquisition Timeline

Total

Assets

$14,000

$12,000

$10,000

$8,000

$6,000

$4,000

$2,000

$-

February 2011

April 2012

Acquired Canyon

Acquired Palm

National Bank

Desert National Bank

($192MM assets) in

($103MM assets) in

FDIC-assisted deal

FDIC-assisted deal

$9.65

$8.19

$961$1,174

March 2013 and June 2013

Acquired First Associations Bank ($424MM assets) and San Diego Trust Bank ($211MM assets)

$9.08

$1,714

April 2017 and

November 2017

Acquired Heritage

January 2014

Oaks Bancorp

January 2015

January 2016

($2.0B assets)

Acquired Infinity

and Plaza Bancorp

Franchise Holdings

Acquired

Acquired Security

($1.3B assets)

($80MM assets),

Independence Bank

California Bancorp

a specialty finance

($422MM assets)

($715MM assets)

company

$15.26

$12.51

$8,025

$11.17

$10.12

$4,036

$2,038

$2,790

July 2018

Acquired Grandpoint$18.84 Capital, Inc.

($3.2B assets)

$16.97

$11,487$11,776

TBV/

Share

$19.00

$16.50

$14.00

$11.50

$9.00

$6.50

2011

2012

2013

2014

2015

2016

2017

2018

2019

Non-Acquired

Acquired

TBV/Share

Note: All dollars in millions, except per share data

© 2019 Pacific Premier Bancorp, Inc. | All rights reserved

7

ACQUISITION EXECUTION

The company has a well established and successful track record of executing on acquisitions

Organic growth driven by dynamic and disciplined sales culture

2008-2012

Geographic expansion through highly accretive FDIC-assisted acquisitions

• Canyon National Bank ("CNB") - $192 million in assets, closed on 2/11/2011 (FDIC-Assisted)

• Palm Desert National Bank ("PDNB") - $103 million in assets, closed on 4/27/2012 (FDIC-Assisted)

Build out of commercial banking platform through acquisitions

• First Associations Bank ("FAB") - $424 million in assets, closed on 3/15/2013 (151 days)

• San Diego Trust Bank ("SDTB") - $211 million in assets, closed on 6/25/2013 (110 days)

2013-2019

• Infinity Franchise Holdings ("IFH") - $80 million in assets, closed on 1/30/2014 (73 days)

Independence Bank ("IDPK") - $422 million in assets, closed on 1/26/2015 (96 days)

• Security California Bancorp ("SCAF") - $715 million in assets, closed 1/31/2016 (120 days)

• Heritage Oaks Bancorp ("HEOP") - $2 billion in assets, closed on 4/1/2017 (109 days)

• Plaza Bancorp ("PLZZ") - $1.3 billion in assets, closed on 11/1/2017 (84 days)

Grandpoint Capital, Inc. ("GPNC") - $3.2 billion in assets, closed on 7/1/2018 (139 days)

2020 and Beyond

  • Produce EPS growth from scale, efficiency and balance sheet leverage
  • Disciplined organic and acquisitive growth, increasing franchise and shareholder value
  • Effective capital management
  • Board and management regularly assess strategic direction-Buy, Sell or Hold

© 2019 Pacific Premier Bancorp, Inc. | All rights reserved

8

STRONG EARNINGS PERFORMANCE

The company has consistently delivered leading earnings growth and shareholder value

Total Revenue and Efficiency Ratio

$600.0

75.0%

$500.0

$482.5

64.7%

$423.7

$400.0

65.0%

61.3%

$300.0

55.9%

$278.6

53.6%

55.0%

$200.0

$172.7

51.0%

51.6%

50.8%

$120.7

45.0%

$100.0

$67.3

$87.0

$0.0

35.0%

2013

2014

2015

2016

2017

2018

2019

Total Revenue

Efficiency Ratio

Note: All dollars in millions

1. Please refer to non-U.S. GAAP reconciliation in appendix

Net Income and Earnings Per Share

$200.0

$2.63

$180.0

$2.50

$2.60

$2.50

$160.0

$2.26

$160

$160

$2.05

$136

$140.0

$2.00

$1.58

$123

Net Income ($MM)

$120.0

$1.56

Earnings per Share ($)

$100.0

$1.34

$1.50

$1.46

$80.0

$1.04

$79

$1.19

$1.00

$0.80

$60

$60.0

$0.96

$40.0

$40$43

$29

$0.50

$0.54

$17$18

$26

$20.0

$9 $13

$0.0

2013

2014

2015

2016

2017

2018

2019

$0.00

Reported Net Income

Operating Net Income (1)

Reported Diluted EPS

Operating Diluted EPS (1)

© 2019 Pacific Premier Bancorp, Inc. | All rights reserved

9

NET INTEREST MARGIN

Strong asset yield and low cost deposits - NIM ranks in the top quartile(3)

• Net interest income has grown 40% compounded annually since 2013

Loan Portfolio Reported Yields, Core Yields(1), and Total Deposit Costs

6.00%

5.59%

5.56%

5.57%

5.59%

5.20%

5.52%

5.45%

5.44%

5.50%

5.32%

5.39%

5.31%

4.20%

Yields

5.26%

5.28%

5.37%

5.34%

5.31%

Deposits

5.17%

5.17%

5.17%

5.00%

5.11%

3.20%

Loan

5.02%

Cost of

2.20%

4.50%

0.63%

0.73%

0.71%

1.20%

0.34%

0.34%

0.32%

0.28%

0.28%

0.51%

0.58%

4.00%

0.20%

2013

2014

2015

2016

2017

2018

1Q'19

2Q'19

3Q'19

4Q'19

Portfolio Core Loan Yields (1)

Portfolio Reported Loan Yields

Cost of Total Deposits

  1. Core loan yields exclude accretion and other one-time adjustments
  2. Please refer to non-U.S. GAAP reconciliation in appendix
  3. Source: SNL Financial - 3Q'19 PPBI ranked 92nd percentile of KRX banks

© 2019 Pacific Premier Bancorp, Inc. | All rights reserved

Reported and Core Net Interest Margin(2)

6.00%

5.50%

5.00%

4.50%

4.25%

4.48%

4.43%

4.44%

4.37%

4.28%

4.36%

4.33%

4.18%

4.21%

4.00%

4.09%

4.06%

4.20%

4.18%

4.24%

4.21%

4.08%

4.12%

4.10%

3.93%

3.50%

3.00%

2.50%

2.00%

2013

2014

2015

2016

2017

2018

1Q'19

2Q'19

3Q'19

4Q'19

Reported Net Interest Margin

Core Net Interest Margin (2)

10

CAPITAL RATIOS & CAPITAL MANAGEMENT

Capital management is a key focus of the Board and Management

  • Increased quarterly cash dividend from $0.22 per share to $0.25 per share
  • Returned $153 million to shareholders in 2019
  • Announced a new $100 million stock repurchase authorization in Q4 2019

Holding Company Capital Ratios

Q4 2019

Q3 2019

Q4 2018

Tangible Common Equity Ratio

10.30%

10.01%

10.02%

Leverage Ratio

10.54%

10.34%

10.38%

Common Equity Tier 1 Ratio (CET -1)

11.35%

10.93%

10.88%

Tier 1 Ratio

11.42%

11.04%

11.13%

Risk Based Capital Ratio

13.81%

13.40%

12.39%

Bank Level Capital Ratios

Q4 2019

Q3 2019

Q4 2018

Leverage Ratio

12.39%

12.20%

11.06%

Common Equity Tier 1 Ratio (CET -1)

13.43%

13.01%

11.87%

Tier 1 Ratio

13.43%

13.01%

11.87%

Risk Based Capital Ratio

13.83%

13.41%

12.28%

© 2019 Pacific Premier Bancorp, Inc. | All rights reserved

11

ATTRACTIVE DEPOSIT PORTFOLIO

88% non-maturity deposit composition with 43% in non-interest bearing reflects strong client relationship-based business model

Interest-Bearing

Demand

7%

Certificates

of Deposit,

12%

Money Market &

Non-interest Bearing

Savings

38%

Demand

43%

As of

Cost of

(dollars in thousands)

12/31/2019

Deposits(1)

Deposits

$

3,857,660

0.00%

Non-interest bearing demand

Interest-bearing demand

586,019

0.45%

Money market and savings

3,406,988

0.79%

Total non-maturity deposits

7,850,667

0.38%

Retail certificates of deposit

973,465

1.70%

Wholesale brokered certificates of deposit

74,377

2.42%

Total certificates of deposit

1,047,842

1.83%

Total deposits

$

8,898,509

0.58%

1. Quarterly average cost

© 2019 Pacific Premier Bancorp, Inc. | All rights reserved

12

LOAN PORTFOLIO COMPOSITION

Well diversified, high yielding commercial loan portfolio

Farmland

1-4 Family

2%

Other

3%

1%

Const. &

Land

Commercial and

5%

Industrial

14%

Multi-family

Commercial Owner

18%

Occupied

19%

Commercial Non-

Franchise

owner Occupied

11%

24%

Agribusiness

SBA

1%

2%

1. As of 12/31/19 and excluding the impact of fees, discounts and premiums

As of

Weighted

(dollars in thousands)

12/31/2019

Average Rates(1)

Business loans

5.22%

Commercial and industrial

$1,265,185

Franchise

916,875

5.58%

Commercial owner occupied

1,674,092

4.85%

SBA

175,815

6.82%

Agribusiness

127,834

4.92%

Total business loans

$4,159,801

5.21%

Real estate loans

Commercial non-owner occupied

$2,072,374

4.61%

Multi-family

1,576,870

4.30%

One-to-four family

254,779

4.78%

Construction

410,065

5.99%

Farmland

175,997

4.71%

Land

31,090

5.45%

Total real estate loans

$4,521,175

4.65%

Consumer loans

$50,922

3.97%

Gross loans held for investment

$8,731,898

4.91%

© 2019 Pacific Premier Bancorp, Inc. | All rights reserved

13

HIGH QUALITY LOAN PORTFOLIO

Diversified across the spectrum of business types with a high level of granularity

Distribution of C&I Portfolio by Industry (1)

15%

10%

Construction, 10%

Real Estate, and Rental and Leasing, 10%

10%

Manufacturing, 11%

6%

Health Care and Social Assistance, 10%

8%

Finance and Insurance, 7%

10%

Other Services (except Public Administration), 9%

6%

Retail Trade, 9%

Professional, Scientific, and Technical Services, 6%

10%

Accommodation and Food Services, 8%

9%

Wholesale Trade, 6%

9%

7%

All Other, 15%

CRE Property Type as a Percent of Total CRE

1 Distribution by North American Industry Classification System (NAICS)

Includes C&I, Owner Occupied CRE, SBA and Agribusiness loans. Excludes Franchise loans.

Geographic Distribution of Loan Portfolio

2%

California, 75%

6%

Texas, 2%

2%

Arizona, 6%

4%

1%

Nevada, 2%

75%

1%

Washington/Oregon, 4%

9%

New York, 1%

New Jersey, 1%

Other, 9%

  • California peer group consists of all insured California institutions, from SNL Financial. © 2019 Pacific Premier Bancorp, Inc. | All rights reserved

Distribution of Franchise Concepts

Domino's

Other

Pizza

19%

3%

Burger King

Jack In The

20%

Box

3%

Denny's

Dunkin

15%

3%

Zaxby's Real

Sonic

Chicken

Wendy's

Drive-In

4%

5%

KFC

12%

Popeyes

9%

7%

*Other category includes 19 different concepts, none of which represents more than 3%

14

CREDIT RISK MANAGEMENT

The Company has a long running history of outperforming peers on asset quality

  • Loan delinquencies to loans held for investment of 0.22% as of 12/31/2019
  • Nonperforming assets to total assets of 0.08% at 12/31/2019

Nonperforming Assets to Total Assets Comparison

PPBI

Peers *

5.00

4.50

4.11

4.26 4.30 4.24 4.39 4.23 4.29

3.96

4.06 4.04

4.00

3.77

3.62

3.48 3.39

3.50

CNB

3.26

3.21

3.00

2.93

Acquisition

2.96

2/11/11

PDNB

2.50

Acquisition

4/27/12

2.00

1.70 1.58 1.66

1.36

1.62

1.

1.56

1.50

1.31

1.24 1.10 1.18

1.08

1.04

1.05 0.91 0.80 0.74 0.69

1.00

0.76

0.74

0.48 0.58

0.38 0.33 0.21

0.59 0.58

0.53 0.48 0.50 0.49 0.46 0.44 0.42 0.41 0.42 0.41

0.36

0.38 0.37 0.33

0.50

0.20 0.20

0.21

0.19

0.40

0.55

0.15

0.14

0.12 0.12

0.17

0.18 0.18

0.13

0.17

0.04

0.02 0.01 0.01

0.11

0.08

0.07

0.04

0.11

0.07 0.07 0.08

-

0.04

1Q '09

2Q '09

3Q '09

4Q '09

1Q '10

2Q '10

3Q '10

4Q '10

1Q '11

2Q '11

3Q '11

4Q '11

1Q '12

2Q '12

3Q '12

4Q '12

1Q '13

2Q '13

3Q '13

4Q '13

1Q '14

2Q '14

3Q '14

4Q '14

1Q '15

2Q '15

3Q '15

4Q '15

1Q'16

2Q'16

3Q'16

4Q'16

1Q'17

2Q'17

3Q'17

4Q'17

1Q'18

2Q'18

3Q'18

4Q'18

1Q'19

2Q'19

3Q'19

4Q'19

© 2019 Pacific Premier Bancorp, Inc. | All rights reserved

15

ASSET QUALITY MEASURES

Highly disciplined credit risk management, proactive loss mitigation strategies

  • Well-positionedto absorb the anticipated CECL transitionary impact
  • Anticipated ACL will increase $45 to $60 million from year-end 2019 levels in 1Q 2020

Total Delinquent Loans to Loans Held for Investment

1.00%

0.80%

0.60%

0.40%

0.20%

0.15%

0.18%

0.15%

0.13%

0.22%

0.00%

4Q'18

1Q'19

2Q'19

3Q'19

4Q'19

Annualized Net Charge Offs to Average Loans

1.00%

0.80%

0.60%

0.40%

0.20%

0.16%

0.11%

0.01%

0.06%

0.01%

0.00%

4Q'18

1Q'19

2Q'19

3Q'19

4Q'19

Nonperforming Loans to Loans Held for Investment

Allowances for Loan Losses + Discount to Loans Held for Investment

0.50%

0.40%

0.30%

0.20%0.15%

0.10%

0.05%

0.09%

0.09%

0.10%

0.00%

4Q'18

1Q'19

2Q'19

3Q'19

4Q'19

1.20%

1.10%

1.07%

0.99%

0.93%

1.00%

0.88%

0.80%

0.60%

0.41%

0.43%

0.40%

0.41%

0.40%

0.40%

0.20%

0.00%

4Q'18

1Q'19

2Q'19

3Q'19

4Q'19

ALLL to LHFI

ALLL + Discount Acquired Loans to LHFI

Notes:

At December 31, 2019, 37% of loans held for investment include a fair value net discount of $40.7 million or 0.47% of loans held for investment.

16

© 2019 Pacific Premier Bancorp, Inc. | All rights reserved

CRE TO CAPITAL CONCENTRATION RATIO

Experience in managing CRE concentrations well in excess of 300%

• CRE concentrations are well-managed across the organization, and semi annually stress tested

CRE as a Percent of Total Capital

1000%

800%

600%

400%

200%

0%

Annualized Net Charge-Offs(1)

Commercial Real Estate

0.10%

Multi-Family

0.05%

627%

Decreased

Managed Growth

499%

Grandpoint

415% 372%

310% 349% 316% 336% 362% 352% 365% 376% 389%

Acquisition

340% 336%

356% 341% 342% 332% 326%

306%

287% 287% 275%

2008

2009

2010

2011

2012

2013

2014

2015

1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 4Q'18 1Q'19 2Q'19 3Q'19 4Q'19

1. January 1, 2009 - September 30, 2019

© 2019 Pacific Premier Bancorp, Inc. | All rights reserved

17

EXPANDING OUR CAPABILITIES

Key business initiatives enhancing products and processes to drive additional revenue and balance sheet growth

Technology Enabled Business Development

Significant investment in customizing the Salesforce platform

  • Manage and monitor all facets of client relationship
  • Enhanced analytics to consistently drive lead generation and new client acquisition
  • Robust monitoring and reporting capabilities
  • Productivity tracking and performance management

Product Enhancements

Foreign

• Expanded International Banking Group

• Streamlined Foreign Currency Processing

Currency

Improved Client Experience

M&A Transactions

Capital Investments

Third Party

Contractor Retention

Disbursement/Fund Control

Escrow

Qualified Escrow Accounts

Large Asset Acquisition

Dissolution of Assets

• Enhanced Account Analysis Platform

Treasury

Expanded Lockbox Services

Improved ACH Capabilities

Management

Invoice to Pay

Check Printing Service

© 2019 Pacific Premier Bancorp, Inc. | All rights reserved

18

PACIFIC PREMIER API BANKINGSM & DATAVAULT®

Modernizing the exchange of data between clients and the Bank

  • Pacific Premier API Banking allows software developers, corporate clients, and FinTechs to partner with Pacific Premier to create powerful applications and long lasting relationships

Technology Advancements

Industry Accounting Platforms

Pacific Premier Bank

Pacific Premier Bank

Expanded Market

Data Services

DataVault® API

Opportunities

Core Banking Services

HOA Software Partners

Check Images

FinTech Application

FinTech Partners

Statement Images

Accounting Software

Transaction Details

Partners

Account Transfers

Subscription Companies

Electronic Payments

Healthcare

Alternate lending models

Corporate Clients

Data flows through Bank systems to reach the client securely and directly

© 2019 Pacific Premier Bancorp, Inc. | All rights reserved

19

ENVIRONMENTAL, SOCIAL, GOVERNANCE

Corporate giving and responsibility is a pillar of our business culture

2019 Highlights(1):

#1 Rating

ISS Composite QualityScore for

Governance

$2,961,972

Charitable Community Support

5,196

Volunteer Hours

2019 Recycling

465,765 233

Pounds Tons

1. Data from 1/1/2019-12/31/2019

© 2019 Pacific Premier Bancorp, Inc. | All rights reserved

We believe in doing our part to strengthen our communities through responsible employee business practices, robust corporate governance and shareholder friendly policies.

Our employees are leaders working with our 300+ community partners:

Serve on Boards

Provide financial and

Promote community

and committees

technical expertise

development missions

By shredding

3,959

466

Trees

Barrels of Oil

and recycling

699

1,630,176

we have saved:

Cubic Yards

Gallons of Water

of Landfill

20

Acquisition of Opus Bank

TRANSACTION HIGHLIGHTS

Transformative

~$20 billion in pro forma assets - will become the 6th largest bank in Western U.S.1

Merger

Greater operational scale and increased efficiencies

Geographic

Geographic footprint in some of the most attractive metropolitan markets in the Western U.S.

Fit and Scale

Complementary

Diversification of business lines, products and services as well as deposit base and clients

Combination

Specialty lines of business from Opus, including multifamily, trust (PENSCO) and escrow (Commerce Escrow)

Trust and escrow provide $2.0 billion in deposits with a blended deposit cost of 0.10%

Financially

Double-digit EPS accretion of 14% in 2021

Attractive

Tangible book value dilution of 2.8%, or $0.53 per share, with an earnback period of 1.8 years

Cost savings estimated at 25%

Merger consideration is 138.4% Price / Tangible Book Value per share for Opus

14.7x price / EPS (2021E), or 8.7x including fully-phased in cost savings

Consideration

100% stock

0.90x shares of PPBI common stock for each share of Opus stock - fixed exchange ratio, no caps or collars

34.7 million shares issued to holders of Opus common stock, as-converted preferred stock, and restricted stock awards

Transaction

$1.0 billion in aggregate consideration

Value2

$26.82 per share consideration

Note: Financial information as of 12/31/2019 and market data as of 1/31/2020

  1. Rank based on company headquarters and total assets, excluding CCAR and ethnic focused institutions. Western U.S. includes CA, OR, WA, NV and AZ
  2. Includes consideration for common shareholders, preferred stock holders, stock options, warrants and restricted stock awards

© 2019 Pacific Premier Bancorp, Inc. | All rights reserved

22

OVERVIEW OF OPUS BANK

Overview

Branch Network

  • Opus is a commercial bank headquartered in Irvine, California with $8.0 billion in assets, $5.9 billion in loans and $6.5 billion in deposits

Business Lines

  • Opus is one of the leading multifamily lenders in the Western U.S.
  • Full suite of commercial banking products focused on small to middle market businesses, including C&I, owner-occupied CRE, and SBA loans
  • PENSCO is a wholly-owned subsidiary of Opus and IRA custodian for alternative assets offering attractive, low-cost deposit funding and fee income
  • Commerce Escrow division is a Los Angeles-based escrow company and 1031 exchange accommodator - increasing specialty deposit capability and fee income

Branch Footprint

7 of 9 geographic regions will rank in top-10 for deposit market share1

16 Washington

Primarily in Seattle MSA (15)

1 Oregon

Portland

3

Northern California

San Francisco (3)

25

Southern California

Los Angeles-Orange (20)

San Diego (3)

Riverside-San Bernardino (2)

1

Arizona

Scottsdale

Mitigated Risk

  • Simplified business model over the last few years - de-risked balance sheet
  • Management exited Enterprise Value Loans, Healthcare Practice Loans, and Technology Banking

Note: All dollars in millions. Financial information as of 12/31/2019

1. Rank excludes CCAR designated banks and foreign owned subsidiaries

© 2019 Pacific Premier Bancorp, Inc. | All rights reserved

Pro Forma Deposits by Region

Top-10

% of

Region

Branches

Rank1

Deposits ($B)

Total

Los Angeles-Orange MSA

32

$9.1

60%

Central Coast California3

11

$1.8

12%

Riverside-San Bernardino MSA

11

$1.3

8%

Seattle MSA3

16

$1.2

8%

San Diego MSA

8

$0.8

5%

Arizona

4

$0.6

4%

Portland MSA

2

$0.2

1%

Las Vegas MSA

1

$0.1

1%

San Francisco MSA

3

$0.1

1%

Total

88

$15.2

100%

23

DIVERSIFYING PPBI'S REVENUE STREAM

Non-Interest Income ($MM)

$100

0.41%

0.45%

$90

0.40%

$80

$79

0.35%

$70

$60

0.26%

0.30%

$50

$50

0.25%

$40

$30

$30

0.20%

$20

0.15%

$10

$-

0.10%

PPBI

OPB

Pro Forma (1)

Non-Interest Income

Non-Interest Income / Avg. Assets

  • 2.6x increase in PPBI's pro forma non-interest income to ~$79 million
  • 12% of pro forma operating revenue from non-interest income
  • $2.0 billion in deposits with a blended deposit cost of 0.10% from PENSCO and Commerce Escrow divisions
  • Meaningful opportunities to expand both lines of business over time

Specialized Lines of Business

Pro Forma Operating Revenue

Opus Non-Interest Income Mix

(% of Total)

(% of Total)

30.0%

PENSCO

Gain on

24%

Fees

25.0%

56%

Sale

2%

20.0%

$50MM

15.0%

12%

BOLI

10.0%

7%

8%

5.0%

Escrow &

Other

Exchange

Deposit Fees

0.0%

10%

PPBI

OPB

Pro

12%

12%

Forma (1)

Note: All dollars in millions. Financial information for twelve months ended 12/31/2019

PENSCO Trust

A division of Opus Bank

  • IRA custodian for alternative assets, such as private equity or real estate held in retirement accounts
  • $14 billion in assets under custody
  • 46,000 customer accounts
  • Stable source of low-cost core deposits
  • $28 million in fee income for 2019
  • Acquired by Opus in 2016

Commerce Escrow

A division of Opus Bank

  • Escrow company with 1031 exchange practice
  • Synergies with PPBI's existing escrow deposit business
  • Provides the bank with $650 million in deposits at 0.25% cost of funds
  • $6 million in fee income for 2019
  • Acquired by Opus in 2015

1. Pro forma includes $1.0 million reduction in interchange fees due to Durbin Amendment © 2019 Pacific Premier Bancorp, Inc. | All rights reserved

24

ATTRACTIVE FUNDING PROFILE

IB Demand 7%

IB

MMDA &

Demand

MMDA &

41%

NIB

Savings

Savings

34%

Demand

38%

43%

Time Deposits

NIB

Time Deposits

Demand

13%

12%

12%

Total Deposits: $8.9 Billion

Total Deposits: $6.5 Billion

Cost of Deposits: 0.58%

Cost of Deposits: 1.01%

Pro Forma

IB

Demand

21%

MMDA &

Savings

NIB36% Demand

30%

Time Deposits

12%

Total Deposits: $15.4 Billion

Cost of Deposits: 0.76%

$2.0 billion in deposits with a blended deposit cost of

Greater deposit diversification

0.10% from PENSCO and Commerce Escrow divisions

Ability to run-off and replace Opus' higher-cost funding

Strong pro forma core deposit franchise

with core deposits at PPBI

Note: S&P Global Market Intelligence, financial information as of 12/31/2019

© 2019 Pacific Premier Bancorp, Inc. | All rights reserved

25

DIVERSIFIED LOAN PORTFOLIO

NOO-CRE

OO-CRE

19%

24%

Multifamily

NOO-CRE

64%

C&I +

13%

Multifamily

Franchise

25%

OO-CRE

18%

C&I

5%

Farm & Ag.

15%

1-4 Family

3%

3%

1-4 Family

Construction & Land

Consumer &

1%

Consumer &

5%

Other

SBA

Construction & Land

Other

2%

1%

1%

SBA

0%

1%

Gross Loans: $8.7 Billion

Gross Loans: $5.9 Billion

Loan Yield: 5.44%

Loan Yield: 4.13%

NPAs/Assets: 0.08%

NPAs/Assets: 0.07%

Pro Forma

NOO-CRE

20%

OO-CRE

13%

Multifamily

37%C&I + Franchise

21%

1-4 Family

Farm & Ag.

2%

Construction & Land

2%

SBA

Consumer & Other

3%

1%

0%

Gross Loans: $14.6 Billion

Loan Yield: 4.92%

NPAs/Assets: 0.08%

  • Attractive credit quality and risk adjusted returns on loan portfolio
  • Diversifies portfolio concentrations across type, geography and industry
  • Differentiated specialty lending verticals and expertise
  • Continuing momentum to grow middle-market banking practice - will benefit from larger pro forma balance sheet
  • Multifamily loans are geographically diversified in West Coast metropolitan areas
  • Right-sizeconcentration in multifamily; PPBI has 20+ year history in multifamily lending

Note: S&P Global Market Intelligence, financial information as of 12/31/2019

© 2019 Pacific Premier Bancorp, Inc. | All rights reserved

26

INSTITUTIONAL OWNERSHIP

OPB Ownership,

PPBI Ownership,

PPBI Ownership,

Pre-Deal

PPBI Shares

Pre-Deal

Pro Forma

Rank

Name

Shares

% Own*

Issued

Shares

% Own

Shares

% Own

1

BlackRock Inc.

3,512,229

9.1%

3,161,006

8,740,229

14.7%

11,901,235

12.6%

2

Vanguard Group Inc.

1,587,721

4.1%

1,428,949

6,222,334

10.5%

7,651,283

8.1%

3

Dimensional Fund Advisors LP

2,765,538

7.2%

2,488,984

3,277,962

5.5%

5,766,946

6.1%

4

Janus Henderson Group PLC

-

-

-

4,623,366

7.8%

4,623,366

4.9%

5

Fortress Investment Group LLC*

5,121,275

13.3%

4,609,148

-

-

4,609,148

4.9%

6

T. Rowe Price Group Inc.

-

-

-

3,614,106

6.1%

3,614,106

3.8%

7

Elliott Management Corp.

3,620,950

9.4%

3,258,855

-

-

3,258,855

3.5%

8

Starwood Capital Operations LLC

3,390,250

8.8%

3,051,225

-

-

3,051,225

3.2%

9

State Street Global Advisors Inc.

834,351

2.2%

750,916

2,054,630

3.5%

2,805,546

3.0%

10

FJ Capital Management LLC

1,618,354

4.2%

1,456,519

937,000

1.6%

2,393,519

2.5%

11

Aristotle Capital Boston LLC

2,179,867

5.7%

1,961,880

-

-

1,961,880

2.1%

12

Columbia Management Investment Advisers LLC

919,801

2.4%

827,821

1,004,430

1.7%

1,832,251

1.9%

13

Emerald Advisers LLC

-

-

-

1,680,381

2.8%

1,680,381

1.8%

14

Goldman Sachs Asset Management LP

112,160

0.3%

100,944

1,190,699

2.0%

1,291,643

1.4%

15

Manulife Asset Management

-

-

-

1,212,353

2.0%

1,212,353

1.3%

16

Cardinal Capital Management L.L.C.

-

-

-

1,180,244

2.0%

1,180,244

1.3%

17

RBC Global Asset Management Inc.

471,927

1.2%

424,734

713,721

1.2%

1,138,455

1.2%

18

Northern Trust Global Investments

294,247

0.8%

264,822

862,296

1.4%

1,127,118

1.2%

19

Geode Capital Management LLC

313,151

0.8%

281,836

790,036

1.3%

1,071,872

1.1%

20

BNY Asset Management

324,748

0.8%

292,273

758,349

1.3%

1,050,622

1.1%

21

Brown Advisory Inc.

-

-

-

1,033,703

1.7%

1,033,703

1.1%

22

Endeavour Capital Advisors Inc.

1,028,268

2.7%

925,441

-

-

925,441

1.0%

23

GW&K Investment Management LLC

-

-

-

881,010

1.5%

881,010

0.9%

24

Stieven Capital Advisors LP

396,579

1.0%

356,921

521,042

0.9%

877,963

0.9%

25

Principal Global Investors LLC

170,684

0.4%

153,616

503,648

0.8%

657,264

0.7%

Source: S&P Global Market Intelligence. Ownership data as of 9/30/2019 company filings. *Includes conversion of preferred stock and vesting of restricted stock

© 2019 Pacific Premier Bancorp, Inc. | All rights reserved

27

SCARCITY VALUE IN SOUTHERN CALIFORNIA

PPBI is the 3rd largest publicly traded bank headquartered in Southern California(1)

Total

Market

Price to

Price to

Assets

Cap.

Earnings

TBV

Company Name

State

Ticker

Exchange

($M)

($M)

(x)

(%)

1

PacWest Bancorp

CA

PACW

NASDAQ

$26,771

$4,311

9.4

185

2

Pro Forma PPBI+Opus Bank (2)

CA

PPBI

NASDAQ

19,682

--

--

--

2

Axos Financial Inc.

NV

AX

NYSE

12,269

1,758

10.9

171

3

Pacific Premier Bancorp, Inc.

CA

PPBI

NASDAQ

11,776

1,810

11.0

161

4

CVB Financial Corp.

CA

CVBF

NASDAQ

11,282

3,061

14.8

238

5

Opus Bank

CA

OPB

NASDAQ

7,992

1,001

17.0

142

6

Banc of California, Inc.

CA

BANC

NYSE

7,828

852

NM

129

7

Farmers & Merchants Bank of Long Beach

CA

FMBL

OTCQB

7,606

999

11.9

92

8

First Foundation Inc.

CA

FFWM

NASDAQ

6,314

766

13.7

148

9

American Business Bank

CA

AMBZ

OTCQX

2,402

283

13.2

137

10

Pacific Mercantile Bancorp

CA

PMBC

NASDAQ

1,416

166

29.4

-

11

Malaga Financial Corporation

CA

MLGF

OTC Pink

1,248

168

11.0

-

12

Provident Financial Holdings, Inc.

CA

PROV

NASDAQ

1,107

167

30.9

135

Median

$7,828

$925

13.2

145

Market data as of February 6, 2020. Financial data for the most recently reported quarter. Peer P/E ratio uses LTM EPS.

Source: SNL Financial

1.

Defined as banks with shares listed on the NYSE, NASDAQ or OTC exchanges, excludes ethnically focused banking institutions sorted by total assets

2.

Total assets shown as of pro forma December 31, 2019 and are inclusive of merger adjustments

28

© 2019 Pacific Premier Bancorp, Inc. | All rights reserved

SCARCITY VALUE IN THE WESTERN U.S.

Listed below are banks headquartered in the West with assets between $5B and $25B(1)

  • PPBI ranks 3rd when measured by total assets for banks headquartered in Southern California… and 9th more broadly across the continental Western U.S.

Total

Market

Price to

Price to

Assets

Cap.

Earnings

TBV

Company Name

State

Ticker

Exchange

($M)

($M)

(x)

(%)

1

Western Alliance Bancorporation

AZ

WAL

NYSE

$26,822

$5,906

12.0

219

2

PacWest Bancorp

CA

PACW

NASDAQ

26,771

4,311

9.4

185

3

Pro Forma PPBI+Opus Bank (2)

CA

PPBI

NASDAQ

19,682

--

--

--

3

Washington Federal, Inc.

WA

WAFD

NASDAQ

16,423

2,728

12.5

157

4

First Interstate BancSystem, Inc.

MT

FIBK

NASDAQ

14,644

1,713

14.1

199

5

Columbia Banking System, Inc.

WA

COLB

NASDAQ

14,080

2,877

15.1

214

6

Glacier Bancorp, Inc.

MT

GBCI

NASDAQ

13,684

4,123

18.8

286

7

Banner Corporation

WA

BANR

NASDAQ

12,604

1,963

13.2

165

8

Axos Financial Inc.

NV

AX

NYSE

12,269

1,758

10.9

171

9

Pacific Premier Bancorp, Inc.

CA

PPBI

NASDAQ

11,776

1,810

11.0

161

10

CVB Financial Corp.

CA

CVBF

NASDAQ

11,282

3,061

14.8

238

11

Opus Bank

CA

OPB

NASDAQ

7,992

1,001

17.0

142

12

Banc of California, Inc.

CA

BANC

NYSE

7,828

852

NM

129

13

HomeStreet, Inc.

WA

HMST

NASDAQ

6,812

768

49.4

119

14

Westamerica Bancorporation

CA

WABC

NASDAQ

5,620

1,808

22.4

297

Median

$12,604

$1,887

14.1

178

Market data as of February 6, 2020. Financial data for the most recently reported quarter. Peer P/E ratio uses LTM EPS.

Source: SNL Financial

  1. Defined as banks headquartered in AZ, CA, ID, OR, MT, WA and WY with shares listed on the NYSE or NASDAQ exchanges, excludes ethnically focused banking institutions, sorted by total assets
  2. Total assets shown as of pro forma December 31, 2019 and are inclusive of merger adjustments

© 2019 Pacific Premier Bancorp, Inc. | All rights reserved

29

KEY INVESTMENT HIGHLIGHTS

Building Long-term Franchise Value

  • Proven track record of executing on acquisitions and organic growth
  • Continuous improvement to drive economies of scale and operating leverage
  • Strong profitability and returns drive capital return to shareholders
  • Accelerating capital generation and growing dividend - enhancing shareholder value
  • ~$20 billion asset franchise with meaningful presence in desirable Western U.S. metropolitan markets
  • Expanded strategic flexibility for technology investment, organic growth and acquisition opportunities

© 2019 Pacific Premier Bancorp, Inc. | All rights reserved

30

Appendix Material

CONSOLIDATED QUARTERLY FINANCIAL HIGHLIGHTS

December 31,

March 31,

June 30,

September 30,

December 31,

2018

2019

2019

2019

2019

Summary Balance Sheet

Total Assets

$11,487,387

$11,580,495

$11,783,781

$11,811,497

$11,776,012

Loans Held for Investment

8,836,818

8,865,855

8,771,938

8,757,476

8,722,311

Total Deposits

8,658,351

8,715,175

8,861,922

8,859,288

8,898,509

Loans Held for Investment/Total Deposits

102.1%

101.7%

99.0%

98.9%

98.0%

Summary Income Statement

Total Revenue

$124,516

$119,087

$116,965

$123,765

$122,720

Total Noninterest Expense

67,239

63,577

63,936

65,336

66,216

Provision for Credit Losses

2,258

1,526

334

1,562

2,297

Net Income

39,643

38,718

38,527

41,375

41,098

Diluted EPS

$0.63

$0.62

$0.62

$0.69

$0.69

Performance Ratios

Return on Average Assets (4)

1.37%

1.34%

1.33%

1.44%

1.42%

Return on Average Tangible Common Equity (4)

16.7%

15.5%

15.2%

16.3%

15.9%

Efficiency Ratio (1)*

48.3%

49.3%

51.1%

50.9%

51.9%

Net Interest Margin

4.49%

4.37%

4.28%

4.36%

4.33%

Asset Quality

Delinquent Loans to Loans Held for Investment

0.15%

0.18%

0.15%

0.13%

0.22%

Allowance for Loan Losses to Loans Held for Investment

0.41%

0.43%

0.40%

0.40%

0.41%

Nonperforming Loans to Loans Held for Investment

0.05%

0.15%

0.09%

0.09%

0.10%

Nonperforming Assets to Total Assets (2)

0.04%

0.11%

0.07%

0.07%

0.08%

Classified Assets to Total Risk-Based Capital (3)

4.98%

4.03%

2.81%

2.96%

3.34%

Classified Assets to Total Assets (3)

0.54%

0.44%

0.32%

0.33%

0.39%

Capital Ratios

Tangible Common Equity/Tangible Assets *

10.02%

10.32%

9.96%

10.01%

10.30%

Tangible Book Value Per Share *

$16.97

$17.56

$17.92

$18.41

$18.84

Common Equity Tier 1 Risk-based Capital Ratio

10.88%

11.08%

10.82%

10.93%

11.35%

Tier 1 Risk-based Ratio

11.13%

11.32%

11.07%

11.04%

11.42%

Risk-based Capital Ratio

12.39%

12.58%

13.54%

13.40%

13.81%

  1. Represents the ratio of noninterest expense less other real estate owned operations, core deposit intangible amortization and merger-related expenses to the sum of net interest income before provision for loan losses and total noninterest income, less gain / (loss) on sales of securities, OTTI impairment, gain / (loss) of other real estate owned, and gain / (loss) from debt extinguishment
  2. Nonperforming assets excludes nonperforming investment securities.
  3. Classified assets includes substandard loans, doubtful, substandard investment securities, and OREO.
  4. Annualized

*Please refer to non-U.S. GAAP reconciliation in appendix Note: All dollars in thousands, except per share data

© 2019 Pacific Premier Bancorp, Inc. | All rights reserved

32

NON-U.S. GAAP

FINANCIAL MEASURES

Tangible common equity to tangible assets (the "tangible common equity ratio") and tangible book value per share are a non-U.S. GAAP financial measures derived from U.S. GAAP-based amounts. We calculate the tangible common equity ratio by excluding the balance of intangible assets from common stockholders' equity and dividing by tangible assets. We calculate tangible book value per share by dividing tangible common equity by common shares outstanding, as compared to book value per common share, which we calculate by dividing common stockholders' equity by common shares outstanding. We believe that this information is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios. Accordingly, we believe that these non-U.S. GAAP financial measures provide information that is important to investors and that is useful in understanding our capital position and ratios. However, these non-U.S. GAAP financial measures are supplemental and are not a substitute for an analysis based on U.S. GAAP measures. As other companies may use different calculations for these measures, this presentation may not be comparable to other similarly titled measures reported by other companies. A reconciliation of the non-U.S. GAAP measure of tangible common equity ratio to the U.S. GAAP measure of common equity ratio and tangible book value per share to the U.S. GAAP measure of book value per share are set forth below.

December 31,

December 31,

December 31,

December 31,

December 31,

December 31,

March 31,

June 30,

September 30,

December 31,

2013

2014

2015

2016

2017

2018

2019

2019

2019

2019

Total stockholders' equity Less: Intangible assets

Tangible common equity

Total assets

Less: Intangible assets

Tangible assets

$

175,226

$

199,592

$

298,980

$

459,740

$

1,241,996

$

1,969,697

$

2,007,064

$

1,984,456

$

1,988,998

$

2,012,594

(24,056)

(28,564)

(58,002)

(111,941)

(536,343)

(909,282)

(904,846)

(900,162)

(895,882)

(891,634)

$

151,170

$

171,028

$

240,978

$

347,799

$

705,653

$

1,060,415

$

1,102,218

$

1,084,294

$

1,093,116

$

1,120,960

$

1,714,187

$

2,037,731

$

2,789,599

$ 4,036,311

$ 8,024,501

$ 11,487,387

$ 11,580,495

$ 11,783,781

$ 11,811,497

$ 11,776,012

(24,056)

(28,564)

(58,002)

(111,941)

(536,343)

(909,282)

(904,846)

(900,162)

(895,882)

(891,634)

$

1,690,131

$

2,009,167

$

2,731,597

$ 3,924,370

$ 7,488,158

$ 10,578,105

$ 10,675,649

$ 10,883,619

$ 10,915,615

$ 10,884,378

Common Equity ratio

10.22%

9.79%

10.72%

11.39%

15.48%

17.15%

17.33%

16.84%

16.84%

17.09%

Less: Intangible equity ratio

(1.28%)

(1.28%)

(1.90%)

(2.53%)

(6.06%)

(7.13%)

(7.01%)

(6.88%)

(6.83%)

(6.79%)

Tangible common equity ratio

8.86%

9.42%

10.02%

10.32%

9.96%

10.01%

10.30%

8.94%

8.51%

8.82%

Basic shares outstanding

16,656,279

16,903,884

21,570,746

27,798,283

46,245,050

62,480,755

62,773,147

60,509,994

59,364,340

59,506,057

Book value per share

$

10.52

$

11.81

$

13.86

$

16.54

$

26.86

$

31.52

$

31.97

$

32.80

$

33.50

$

33.82

Less: Intangible book value per share

(1.44)

(1.69)

(2.69)

(4.03)

(11.60)

(14.55)

(14.41)

(14.88)

(15.09)

(14.98)

Tangible book value per share

$

17.92

$

18.41

$

18.84

$

9.08

$

10.12

$

11.17

$

12.51

$

15.26

$

16.97

$

17.56

Note: All dollars in thousands, except per share data

© 2019 Pacific Premier Bancorp, Inc. | All rights reserved

33

NON-U.S. GAAP

FINANCIAL MEASURES

For quarter period presented below, adjusted net income and adjusted diluted earnings per share are non-U.S. GAAP financial measures derived from U.S. GAAP-based amounts. We calculate these figures by excluding merger related expenses and DTA revaluations in the period results. Management believes that the exclusion of such items from these financial measures provides useful information to an understanding of the operating results of our core business. For the quarter period presented below, adjusted net income for return on average tangible common equity and average tangible common equity are non-U.S. GAAP financial measures derived from U.S. GAAP-based amounts. We calculate return on average tangible common equity by adjusting net income for the effect of CDI amortization and exclude the average CDI and average goodwill from the average stockholders' equity during the period. We calculate adjusted return on average tangible common equity by adjusting net income for the effect of CDI amortization and merger related expense and exclude the average CDI and average goodwill from the average stockholders' equity during the period. We believe that this is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios. Accordingly, we believe that these non-U.S. GAAP financial measures provide information that is important to investors and that is useful in understanding our capital position and ratios. However, these non-U.S. GAAP financial measures are supplemental and are not a substitute for an analysis based on U.S. 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. A reconciliation of the non-U.S. GAAP measures of return on average tangible common equity and adjusted return on average tangible common equity to the U.S. GAAP measure of return on common stockholders' equity is set forth below.

March 31,

June 30,

September 30,

December 31,

2019

2019

2019

2019

Net income

$38,718

$38,527

$41,375

$41,098

Add: Merger-related expense

655

5

(4)

-

Less: Merger-related expense tax adjustment

190

1

(1)

-

Operating net income

$39,183

$38,531

$41,372

$41,098

Less: Net income allocated to participating securities

347

444

432

426

Operating net income for earnings per share(2)

$38,836

$38,087

$40,940

$40,672

Weighted average shares outstanding - diluted

62,285,783

61,661,773

59,670,855

59,182,054

Diluted earnings per share

$0.62

$0.62

$0.69

$0.69

Average assets

$11,563,529

$11,585,973

$11,461,841

$11,577,092

Operating return on average assets(1)

1.36%

1.33%

1.44%

1.42%

Operating net income

$39,183

$38,531

$41,372

$41,098

Add: CDI amortization

4,436

4,281

4,281

4,247

Less: CDI amortization expense tax adjustment

1,288

1,240

1,240

1,218

Operating net income for return on average tangible common

$42,331

$41,572

$44,413

$44,127

equity

Average stockholders' equity

$1,991,861

$1,999,986

$1,990,311

$2,004,815

Less: Average core deposit intangible

98,984

94,460

90,178

85,901

Less: Average goodwill

808,726

808,778

808,322

808,322

Average tangible common equity

$1,084,151

$1,096,748

$1,091,811

$1,110,592

Operating return on average tangible common equity(1)

15.62%

15.16%

16.27%

15.89%

Note: All dollars in thousands, except per share data

  1. Annualized
  2. EPS presented using the two-class method beginning Q1 2019

© 2019 Pacific Premier Bancorp, Inc. | All rights reserved

34

NON-U.S. GAAP

FINANCIAL MEASURES

For periods presented below, efficiency ratio is a non-U.S. GAAP financial measure derived from U.S. GAAP-based amounts. This figure represents the ratio of noninterest expense less other real estate owned operations, core deposit intangible amortization and merger-related expense to the sum of net interest income before provision for loan losses and total noninterest income, less gains/(loss) on sale of securities, OTTI impairment - securities, gain/(loss) on sale of other real estate owned, and gain / (loss) from debt extinguishment. Management believes that the exclusion of such items from this financial measures provides useful information to gain an understanding of the operating results of our core business.

FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

FY 2019

Total noninterest expense

$

50,815

$

54,993

$

73,538

$

98,583

$

167,958

$

249,905

$

259,065

Less: CDI amortization

764

75

1,350

2,039

6,144

13,594

17,245

Less: Merger-related expense

6,926

1,014

4,799

4,388

21,002

18,454

656

Less: Other real estate owned operations, net

618

1,490

121

385

72

4

160

Noninterest expense, adjusted

$

42,507

$

52,414

$

67,268

$

91,771

$

140,740

$

217,853

$

241,004

Net interest income

$

58,444

$

73,635

$

106,299

$

153,075

$

247,502

$

392,711

$

447,301

Add: Total noninterest income (loss)

8,811

13,377

14,388

19,602

31,114

31,027

35,236

Less: Net gain (loss) from investment securities

1,544

1,547

290

1,797

2,737

1,399

8,571

Less: OTTI impairment - securities

(4)

(29)

-

(205)

1

4

2

Less: Net gain (loss) from other real estate owned

-

-

-

-

46

281

52

Less: Net gain (loss) from debt extinguishment

-

-

-

-

-

-

(612)

Revenue, adjusted

$

65,715

$

85,494

$

120,397

$

171,085

$

275,832

$

422,054

$

474,524

Efficiency Ratio

64.7%

61.3%

55.9%

53.6%

51.0%

51.6%

50.8%

September 30, December 31,

March 31,

June 30,

September 30, December 31,

2018

2018

2019

2019

2019

2019

Total noninterest expense

$

82,782

$

67,239

$

63,577

$

63,936

$

65,336

$

66,216

Less: CDI amortization

4,693

4,631

4,436

4,281

4,281

4,247

Less: Merger-related expense

13,978

2,597

655

5

(4)

-

Less: Other real estate owned operations, net

-

1

3

62

64

31

Noninterest expense, adjusted

$

64,111

$

60,010

$

58,483

$

59,588

$

60,995

$

61,938

Net interest income

$

112,713

$

117,546

$

111,406

$

110,641

$

112,335

$

112,919

Add: Total noninterest income (loss)

8,240

6,970

7,681

6,324

11,430

9,801

Less: Net gain (loss) from investment securities

1,063

-

427

212

4,261

3,671

Less: OTTI impairment - securities

-

-

-

-

2

-

Less: Net gain (loss) from other real estate owned

(6)

305

-

72

(20)

-

Less: Net gain (loss) from debt extinguishment

-

-

-

-

(214)

(398)

Revenue, adjusted

$

119,896

$

124,211

$

118,660

$

116,681

$

119,736

$

119,447

Efficiency Ratio

53.5%

48.3%

49.3%

51.1%

50.9%

51.9%

Note: All dollars in thousands

© 2019 Pacific Premier Bancorp, Inc. | All rights reserved

35

NON-U.S. GAAP

FINANCIAL MEASURES

Core net interest income and core net interest margin are non-GAAP financial measures derived from GAAP-based amounts. We calculate core net interest income by excluding scheduled accretion income, accelerated accretion income, CD mark-to market amortization and nonrecurring nonaccrual interest paid from net interest income. The core net interest margin is calculated as the ratio of core net interest income to average interest-earning assets. 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.

March 31,

June 30,

September 30,

December 31,

2013

2014

2015

2016

2017

2018

2019

2019

2019

2019

Net interest income

$58,444

$73,635

$106,299

$153,075

$247,502

$392,711

$111,406

$110,641

$112,335

$112,919

Less accretion income

3,241

1,927

4,387

9,178

12,901

16,082

3,805

4,950

6,026

5,828

Less CD mark-to-market

139

143

200

411

969

1,551

201

124

124

72

Less nonrecurring nonaccrual interest paid

-

-

-

-

-

-

161

107

37

168

Core net interest income

$55,064

$71,565

$101,712

$143,486

$233,632

$375,078

$107,239

$105,460

$106,148

$106,851

Average interest-earning assets

$1,399,806

$1,750,871

$2,503,009

$3,414,847

$5,583,774

$8,836,075

$10,339,248

$10,363,988

$10,228,878

$10,347,009

Net interest margin

4.18%

4.21%

4.25%

4.48%

4.43%

4.44%

4.37%

4.28%

4.36%

4.33%

Core net interest margin

3.93%

4.09%

4.06%

4.20%

4.18%

4.24%

4.21%

4.08%

4.12%

4.10%

Note: All dollars in thousands

© 2019 Pacific Premier Bancorp, Inc. | All rights reserved

36

Disclaimer

Pacific Premier Bancorp Inc. published this content on 12 February 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 February 2020 23:05:03 UTC

share with twitter share with LinkedIn share with facebook
Latest news on PACIFIC PREMIER BANCORP, I
07/01PACIFIC PREMIER BANCORP : Announces Completion of Acquisition of Opus Bank
AQ
07/01PACIFIC PREMIER BANCORP : Financial Statements and Exhibits (form 8-K/A)
AQ
06/30PACIFIC PREMIER BANCORP, INC. : to Announce Second Quarter 2020 Financial Result..
BU
06/22PACIFIC PREMIER BANCORP INC : Regulation FD Disclosure, Financial Statements and..
AQ
06/15PACIFIC PREMIER BANCORP INC : Entry into a Material Definitive Agreement, Creati..
AQ
06/10PACIFIC PREMIER BANCORP INC : Regulation FD Disclosure, Financial Statements and..
AQ
06/10PACIFIC PREMIER BANCORP, INC. : Announces Pricing of Subordinated Notes Offering
BU
06/09PACIFIC PREMIER BANCORP INC : Other Events, Financial Statements and Exhibits (f..
AQ
06/03PACIFIC PREMIER BANCORP INC : Regulation FD Disclosure, Financial Statements and..
AQ
06/01PACIFIC PREMIER BANCORP INC : Completion of Acquisition or Disposition of Assets..
AQ
More news
Financials (USD)
Sales 2020 648 M - -
Net income 2020 74,5 M - -
Net Debt 2020 - - -
P/E ratio 2020 22,5x
Yield 2020 4,83%
Capitalization 1 906 M 1 906 M -
EV / Sales 2019
Capi. / Sales 2020 2,94x
Nbr of Employees 998
Free-Float 98,3%
Chart PACIFIC PREMIER BANCORP, INC.
Duration : Period :
Pacific Premier Bancorp, Inc. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends PACIFIC PREMIER BANCORP, I
Short TermMid-TermLong Term
TrendsNeutralNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 6
Average target price 26,50 $
Last Close Price 20,20 $
Spread / Highest target 48,5%
Spread / Average Target 31,2%
Spread / Lowest Target 3,96%
EPS Revisions
Managers
NameTitle
Steven R. Gardner Chairman, President & Chief Executive Officer
Ronald J. Nicolas Chief Financial Officer & Senior Executive VP
Jeffrey C. Jones Lead Independent Director
Joseph L. Garrett Independent Director
Cora M. Tellez Independent Director