Pacific Premier Bancorp : March 2020 Investor Presentation

Investor Presentation

Fourth Quarter 2019

Steve Gardner Chairman, President & Chief Executive Officer [e-mail] 949-864-8000

Ronald J. Nicolas, Jr.

Sr. EVP & Chief Financial Officer [e-mail] 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, the dilution caused by PPBI's issuance of additional shares of its capital stock in connection with the transaction, and the impact of the recent outbreak of the novel strain of coronavirus, COVID-19. 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.

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

2

CORPORATE OVERVIEW

Headquarters	Irvine, CA
Exchange/Listing	NASDAQ: PPBI
Market Cap	$1.12 Billion(1)
Average Daily Volume	443,738 Shares(2)
Outstanding Shares	59,556,466(1)
Dividend Yield	5.34%(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 March 11, 2020
2.	3-month average as of March 11, 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%

1 Distribution by North American Industry Classification System (NAICS)

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

CRE Property Type as a Percent of Total CRE

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%

*Based on state of primary real property collateral. If primary collateral is not real property, borrower address is used.

© 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
Chicken		Sonic
4% Wendy's
	Drive-In
5%	KFC	12%
Popeyes	9%
7%

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

14

FRANCHISE PORTFOLIO

Well defined QSR segment, with history of recessionary resiliency

Franchise Loan Portfolio Characteristics

Total Outstanding	$916.9 Million
Number of Relationships	229
Average Relationship Size	$4.0 Million
Number of Loans	875
Average Loan Size	$1.0 Million
Weighted Average DSCR	1.46x
Collateralized w/ Real Estate	39%
2019 Net Charge-Offs	.27%

Key Portfolio Management Fundamentals

• Top tier Quick Service Restaurant ("QSR")/Fast Food brands with national scale and the resources to innovate and command market share
• Our portfolio is well diversified by brand, guarantors, geography and collateral type (CRE and C&I)
• Our QSR borrowers are experienced owner-operators with a minimum of 5 stores and 5 years of proven cash flow
• Principals provide personal guarantees and all related loans are cross collateralized and cross defaulted
• Highly disciplined approach, maintain well-defined market niche with minimal exceptions across the portfolio
• Rigorous portfolio management and consistent communication with owner operators

Geographic Distribution of Franchise Loan Portfolio

			13%	California, 13%
			Texas, 12%
34%				New Jersey, 11%
		12%	Florida, 6%
				North Carolina, 6%
			11%	New York, 5%
			Illinois, 5%
4%				Ohio, 4%
4%	5%		6%	Georgia, 4%
	5%	6%
		Other, 34%

*Based on state of primary real property collateral. If primary collateral is not real property, borrower address is used. *Other category includes 36 different states, none of which represents more than 4%

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

QSR Space Has Historically Been More Resilient in a Recessionary Period

• Fast food restaurants (QSRs) historically have performed comparably better than casual dining restaurants during recessionary periods(1)
• Fast food, on average, experienced only a .4% same store sales decline during the 2008/09 recession compared with casual dining which declined 5%(1)
• Fast food also rebounded quicker and grew faster with EBITDA contracting 1% industry wide in 2008 and growing 15% and 9% in 2009/10, respectively(1)
• Lower commodity prices in the form of lower food costs could offset lower sales in a prolonged downturn(1)
• Delivery and drive thru capabilities can also be a potential offset to sales losses when compared to casual dining(1)

1. Source: Morgan Stanley research, Restaurants | North America, dated 3/11/2020

15

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

16

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.	17
© 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

18

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

19

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

20

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

21

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

23

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%

24

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

25

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	26

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	27

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.	3,662,466	9.5%	3,296,219		8,735,503	14.7%		12,031,722	12.8%
2	Vanguard Group Inc.	1,676,472	4.4%	1,508,825		6,036,261	10.1%		7,545,086	8.0%
3	Dimensional Fund Advisors LP	2,789,552	7.2%	2,510,597		3,477,227	5.8%		5,987,824	6.4%
4	Fortress Investment Group LLC*	5,121,275	13.3%	4,609,148		-	0.0%		4,609,148	4.9%
5	Janus Henderson Group PLC (Perkins)	-	0.0%	-		4,018,049	6.8%		4,018,049	4.3%
6	T. Rowe Price Group Inc.	55	0.0%	50		3,537,220	5.9%		3,537,270	3.8%
7	Starwood Capital Operations LLC	3,390,250	8.8%	3,051,225		-	0.0%		3,051,225	3.2%
8	State Street Global Advisors Inc.	834,351	2.2%	750,916		2,054,630	3.5%		2,805,546	3.0%
9	Aristotle Capital Boston LLC	2,263,961	5.9%	2,037,565		-	0.0%		2,037,565	2.2%
10	Columbia Management Investment Advisers LLC	871,893	2.3%	784,704		1,025,699	1.7%		1,810,403	1.9%
11	Elliott Management Corp.	1,900,000	4.9%	1,710,000		-	0.0%		1,710,000	1.8%
12	Emerald Advisers LLC	27,451	0.1%	24,706		1,680,381	2.8%		1,705,087	1.8%
13	FJ Capital Management LLC	1,618,354	4.2%	1,456,519		-	0.0%		1,456,519	1.5%
14	Goldman Sachs Asset Management LP	53,906	0.1%	48,515		1,307,519	2.2%		1,356,034	1.4%
15	BNY Asset Management	311,224	0.8%	280,102		883,874	1.5%		1,163,976	1.2%
16	Cardinal Capital Management L.L.C.	-	0.0%	-		1,163,463	2.0%		1,163,463	1.2%
17	Manulife Asset Management	12,646	0.0%	11,381		1,126,392	1.9%		1,137,773	1.2%
18	Geode Capital Management LLC	329,304	0.9%	296,374		816,829	1.4%		1,113,203	1.2%
19	Northern Trust Global Investments	292,091	0.8%	262,882		837,819	1.4%		1,100,701	1.2%
20	AllianceBernstein LP	972,293	2.5%	875,064		173,782	0.3%		1,048,846	1.1%
21	Brown Advisory Inc.	-	0.0%	-		1,031,068	1.7%		1,031,068	1.1%
22	Invesco Ltd.	-	0.0%	-		942,909	1.6%		942,909	1.0%
23	Invesco Capital Management LLC	785,325	2.0%	706,793		198,313	0.3%		905,106	1.0%
24	GW&K Investment Management LLC	-	0.0%	-		840,133	1.4%		840,133	0.9%
25	Lord Abbett & Co. LLC	544,387	1.4%	489,948		341,790	0.6%		831,738	0.9%
Total									64,940,391	69.0%

Source: S&P Global Market Intelligence. Ownership data as of 12/31/2019 company filings. *Includes conversion of preferred stock and vesting of restricted stock

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

28

SCARCITY VALUE IN SOUTHERN CALIFORNIA

Upon closing, PPBI will become the 2nd 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	$3,290	7.3	144
	2	Pro Forma PPBI+Opus Bank (2)	CA	PPBI	NASDAQ	19,682	--	--	--
	2	Axos Financial Inc.	NV	AX	NYSE	12,269	1,266	7.9	123
	3	Pacific Premier Bancorp, Inc.	CA	PPBI	NASDAQ	11,776	1,115	6.8	100
	4	CVB Financial Corp.	CA	CVBF	NASDAQ	11,282	2,428	11.7	189
	5	Opus Bank	CA	OPB	NASDAQ	7,992	692	11.8	98
	6	Banc of California, Inc.	CA	BANC	NYSE	7,828	613	NM	92
	7	Farmers & Merchants Bank of Long Beach	CA	FMBL	OTCQB	7,606	911	10.9	84
	8	First Foundation Inc.	CA	FFWM	NASDAQ	6,314	570	10.2	110
	9	American Business Bank	CA	AMBZ	OTCQX	2,402	222	10.3	107
	10	Pacific Mercantile Bancorp	CA	PMBC	NASDAQ	1,416	123	23.2	-
	11	Malaga Financial Corporation	CA	MLGF	OTC Pink	1,248	150	9.8	-
	12	Provident Financial Holdings, Inc.	CA	PROV	NASDAQ	1,107	126	23.3	102
		Median				$7,828	$652	10.3	104
	Market data as of March 11, 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					29
	© 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)

• Upon closing, PPBI will rank 2nd when measured by total assets for banks headquartered in Southern California… and 3rd 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	$3,557	7.2	132
	2	PacWest Bancorp	CA	PACW	NASDAQ	26,771	3,290	7.3	144
	3	Pro Forma PPBI+Opus Bank (2)	CA	PPBI	NASDAQ	19,682	--	--	--
	3	Washington Federal, Inc.	WA	WAFD	NASDAQ	16,423	2,130	9.8	123
	4	First Interstate BancSystem, Inc.	MT	FIBK	NASDAQ	14,644	1,250	10.2	145
	5	Columbia Banking System, Inc.	WA	COLB	NASDAQ	14,080	2,126	11.1	158
	6	Glacier Bancorp, Inc.	MT	GBCI	NASDAQ	13,684	3,218	14.2	217
	7	Banner Corporation	WA	BANR	NASDAQ	12,604	1,387	9.3	116
	8	Axos Financial Inc.	NV	AX	NYSE	12,269	1,266	7.9	123
	9	Pacific Premier Bancorp, Inc.	CA	PPBI	NASDAQ	11,776	1,115	6.8	100
	10	CVB Financial Corp.	CA	CVBF	NASDAQ	11,282	2,428	11.7	189
	11	Opus Bank	CA	OPB	NASDAQ	7,992	692	11.8	98
	12	Banc of California, Inc.	CA	BANC	NYSE	7,828	613	NM	92
	13	HomeStreet, Inc.	WA	HMST	NASDAQ	6,812	575	37.3	90
	14	Westamerica Bancorporation	CA	WABC	NASDAQ	5,620	1,503	18.6	247
		Median				$12,604	$1,445	10.2	128

Market data as of March 11, 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

30

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

31

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

33

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

34

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

35

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																									36

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

37