EX-99.1 2 ppbi_exx991xearnings-2024x.htm EX-99.1 Document

Exhibit 99.1

Pacific Premier Bancorp, Inc. Announces Fourth Quarter 2024 Financial Results and a Quarterly Cash Dividend of $0.33 Per Share
 
Fourth Quarter 2024 Summary
 
•Net income of $33.9 million, or $0.35 per diluted share
•Return on average assets of 0.75%
•Average cost of deposits decreased 5 bps to 1.79%, end-of-period cost of deposits of 1.72%
•Non-maturity deposits increased $145.8 million to $12.35 billion, or 85.4% of total deposits
•Loans held for investment increased $4.6 million to $12.04 billion
•Total delinquency of 0.02% of loans held for investment, nonperforming assets to total assets of 0.16%, and net charge-offs to average loans of 0.01%
•Tangible book value per share(1) increased $0.16 from the prior quarter to $20.97
•Tangible common equity ratio(1) increased to 11.92%
•Common equity tier 1 capital ratio of 17.05%, and total risk-based capital ratio of 20.28%

Irvine, Calif., January 23, 2025 -- Pacific Premier Bancorp, Inc. (NASDAQ: PPBI) (the “Company” or “Pacific Premier”), the holding company of Pacific Premier Bank, National Association (the “Bank” or "Pacific Premier Bank"), reported net income of $33.9 million, or $0.35 per diluted share, for the fourth quarter of 2024, compared with net income of $36.0 million, or $0.37 per diluted share, for the third quarter of 2024, and a net loss of $135.4 million, or $1.44 per diluted share, for the fourth quarter of 2023.

For the fourth quarter of 2024, the Company’s return on average assets (“ROAA”) was 0.75%, return on average equity (“ROAE”) was 4.61%, and return on average tangible common equity (“ROATCE”)(1) was 7.15%, compared to 0.79%, 4.91%, and 7.63%, respectively, for the third quarter of 2024, and (2.76)%, (19.01)%, and (28.01)%, respectively, for the fourth quarter of 2023.

Total assets as of December 31, 2024 were $17.90 billion, compared to $17.91 billion at September 30, 2024, and $19.03 billion at December 31, 2023.

Steven R. Gardner, Chairman, Chief Executive Officer, and President of the Company, commented, “Our team delivered solid results in the fourth quarter, closing out the year in a strong financial position. Our performance throughout 2024 reflects the excellence of our organization and the effectiveness of our relationship-based business model that has us well-positioned to accelerate growth over the coming quarters.”

“The outstanding business development efforts of our relationship managers and their teams, along with a more favorable operating environment and improved client sentiment, led to increased loan originations of $316.0 million in the fourth quarter. Improved loan originations also led to expanded depository relationships as non-maturity deposits increased $145.8 million from the prior quarter, resulting in a positive remix of our deposit base and an 8-basis point reduction in end-of-period deposit costs to 1.72%. The loan portfolio increased from the prior quarter led by growth in C&I and consumer loans as we supplemented our new loan production with select loan purchases and participations of commercial and single-family residential loans. Much of the loan closings occurred later in the quarter and thus the lower average loan balances led, in part, to the net interest margin contracting to 3.02%."

“We enter 2025 from a position of strength, which is reflected, in part, in our strong asset quality levels. Our total delinquency was 0.02% of loans and nonperforming assets decreased to 0.16% of total assets. These positive asset quality results, along with industry-leading capital ratios, provide us with significant flexibility to capitalize on emerging opportunities and thrive in a strengthening economic landscape, reinforcing our role as a trusted partner for our clients and our ability to maximize long term value for our shareholders.”

“Our hearts go out to everyone affected by the devastating California wildfires, including our colleagues, clients, and neighbors in the Los Angeles area. We stand ready to support our communities during this challenging time and we have the resources, capabilities, and commitment to rebuild LA. We will be there as a primary capital provider for the residents, builders, contractors, and related businesses as restoration efforts begin. As always, we remain committed to serving as both a trusted financial partner and a source of strength for the communities we proudly call home.”
(1) Reconciliations of the non–U.S. generally accepted accounting principles (“GAAP”) measures are set forth at the end of this press release.
1

FINANCIAL HIGHLIGHTS
Three Months Ended
 December 31,September 30,December 31,
(Dollars in thousands, except per share data)202420242023
Financial Highlights
Net income (loss) $33,893 $35,979 $(135,376)
Net interest income124,532 130,898 146,789 
Diluted earnings (loss) per share0.35 0.37 (1.44)
Common equity dividend per share paid
0.33 0.33 0.33 
ROAA
0.75 %0.79 %(2.76)%
ROAE
4.61 4.91 (19.01)
ROATCE (1)
7.15 7.63 (28.01)
Net interest margin3.02 3.16 3.28 
Cost of deposits1.79 1.84 1.56 
Cost of non-maturity deposits (1)
1.28 1.27 1.02 
Efficiency ratio (1)
67.8 66.1 60.1 
Noninterest expense as a percent of average assets2.22 2.23 2.09 
Total assets$17,903,585 $17,909,643 $19,026,645 
Total deposits14,463,702 14,480,927 14,995,626 
Non-maturity deposits (1) as a percent of total deposits
85.4 %84.3 %84.7 %
Noninterest-bearing deposits as a percent of total deposits31.9 32.0 32.9 
Loans-to-deposit ratio83.3 83.1 88.6 
Nonperforming assets as a percent of total assets0.16 0.22 0.13 
Delinquency as a percentage of loans held for investment0.02 0.08 0.08 
Allowance for credit losses to loans held for investment (2)
1.48 1.51 1.45 
Book value per share$30.65 $30.52 $30.07 
Tangible book value per share (1)
20.97 20.81 20.22 
Tangible common equity ratio (1)
11.92 %11.83 %10.72 %
Common equity tier 1 capital ratio17.05 16.83 14.32 
Total capital ratio20.28 20.05 17.29 
_____________________________________________________________
(1) Reconciliations of the non-GAAP measures are set forth at the end of this press release.
(2) At December 31, 2024, 21% of loans held for investment include a fair value net discount of $33.2 million, or 0.28% of loans held for investment. At September 30, 2024, 24% of loans held for investment include a fair value net discount of $35.9 million, or 0.30% of loans held for investment. At December 31, 2023, 24% of loans held for investment include a fair value net discount of $43.3 million, or 0.33% of loans held for investment.
2

INCOME STATEMENT HIGHLIGHTS

Net Interest Income and Net Interest Margin
 
Net interest income totaled $124.5 million in the fourth quarter of 2024, a decrease of $6.4 million, or 4.9%, from the third quarter of 2024. The decrease in net interest income was primarily attributable to lower average loan balances and lower yields on interest-earning assets, partially offset by a reduction in the cost of funds, driven by lower average wholesale/brokered CD balances and borrowings.

The net interest margin for the fourth quarter of 2024 decreased 14 basis points to 3.02% from 3.16% in the third quarter of 2024. This decline was due to lower average loan balances and lower yields on interest-earning assets, partially offset by a lower cost of funds.

Net interest income for the fourth quarter of 2024 decreased $22.3 million, or 15.2%, from the fourth quarter of 2023. The decrease was primarily attributable to lower average loan balances and yields and a higher cost of funds.

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCES AND YIELD DATA
(Unaudited)
Three Months Ended
 December 31, 2024September 30, 2024December 31, 2023
(Dollars in thousands)Average BalanceInterestAverage
 Yield/
 Cost		Average BalanceInterestAverage
 Yield/
 Cost		Average BalanceInterestAverage Yield/ Cost
Assets
Cash and cash equivalents$1,128,587 $12,000 4.23 %$1,098,455 $13,346 4.83 %$1,281,793 $15,744 4.87 %
Investment securities3,524,467 32,182 3.65 3,145,214 28,871 3.67 3,203,608 24,675 3.08 
Loans receivable, net (1) (2)
11,738,332 151,275 5.13 12,247,435 163,409 5.31 13,257,767 176,773 5.29 
Total interest-earning assets$16,391,386 $195,457 4.74 $16,491,104 $205,626 4.96 $17,743,168 $217,192 4.86 
Liabilities
Interest-bearing deposits$9,978,164 $66,355 2.65 %$9,972,001 $67,898 2.71 %$10,395,116 $60,915 2.32 %
Borrowings272,750 4,570 6.62 442,403 6,830 6.12 942,689 9,488 4.01 
Total interest-bearing liabilities$10,250,914 $70,925 2.75 $10,414,404 $74,728 2.85 $11,337,805 $70,403 2.46 
Noninterest-bearing deposits$4,730,142 $4,683,477 $5,141,585 
Net interest income$124,532 $130,898 $146,789 
Net interest margin (3)
 3.02 % 3.16 % 3.28 %
Cost of deposits (4)
1.79 1.84 1.56 
Cost of funds (5)
1.88 1.97 1.69 
Cost of non-maturity deposits (6)
1.28 1.27 1.02 
Ratio of interest-earning assets to interest-bearing liabilities159.90 158.35 156.50 
______________________________
(1) Average balance includes loans held for sale and nonperforming loans and is net of deferred loan origination fees/costs, discounts/premiums, and the basis adjustment of certain loans included in fair value hedging relationships.
(2) Interest income includes net discount accretion of $2.7 million, $2.6 million, and $2.6 million, for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively.
(3) Represents annualized net interest income divided by average interest-earning assets.
(4) Represents annualized interest expense on deposits divided by the sum of average interest-bearing deposits and noninterest-bearing deposits.
(5) Represents annualized total interest expense divided by the sum of average total interest-bearing liabilities and noninterest-bearing deposits.
(6) Reconciliations of the non-GAAP measures are set forth at the end of this press release.
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Provision for Credit Losses

For the fourth quarter of 2024, the Company recorded an $814,000 provision reversal, compared to a $486,000 provision expense for the third quarter of 2024, and a $1.7 million provision expense for the fourth quarter of 2023. The decrease in provision for credit losses compared to the third quarter of 2024 was largely attributable to changes to the composition and asset quality trends of the loan portfolio.
Three Months Ended
December 31,September 30,December 31,
(Dollars in thousands)202420242023
Provision for credit losses
Provision for loan losses$(1,632)$(249)$8,275 
Provision for unfunded commitments812 760 (6,577)
Provision for held-to-maturity securities6 (25)(2)
Total provision for credit losses$(814)$486 $1,696 

Noninterest Income
 
Noninterest income for the fourth quarter of 2024 was $20.0 million, an increase of $1.1 million from the third quarter of 2024. The increase was primarily due to a $980,000 increase in other income, largely attributable to a $1.1 million increase in Community Reinvestment Act (“CRA”) investment gains.

Noninterest income for the fourth quarter of 2024 increased $254.2 million, compared to the fourth quarter of 2023. The increase was primarily due to the repositioning of investment securities portfolio during the fourth quarter of 2023 whereby the Bank sold $1.26 billion of its available-for-sale (“AFS”) securities portfolio, which resulted in a $254.1 million net loss.
Three Months Ended
December 31,September 30,December 31,
(Dollars in thousands)202420242023
Noninterest income
Loan servicing income$520 $525 $359 
Service charges on deposit accounts2,766 2,711 2,648 
Other service fee income285 306 322 
Debit card interchange fee income886 876 844 
Earnings on bank owned life insurance4,382 4,335 3,678 
Net gain (loss) from sales of loans93 47 (4)
Net (loss) from sales of investment securities— — (254,065)
Trust custodial account fees8,714 8,813 9,388 
Escrow and exchange fees768 673 1,074 
Other income1,561 581 1,562 
Total noninterest income (loss)
$19,975 $18,867 $(234,194)
4

Noninterest Expense
 
Noninterest expense totaled $100.7 million for the fourth quarter of 2024, a decrease of $959,000 from the third quarter of 2024. This reduction was primarily due to a $3.0 million decrease in compensation and benefits, a $785,000 decrease in deposit expense, and a $705,000 decrease in premises and occupancy, partially offset by a $4.1 million increase in legal and professional services, driven by a $3.5 million insurance claim receivable reversal.

Noninterest expense decreased by $2.1 million compared to the fourth quarter of 2023. This decline was primarily due to a $2.3 million decrease in FDIC insurance premiums, primarily resulting from a $2.1 million FDIC special assessment in the fourth quarter of 2023, a $1.5 million decrease in compensation and benefits, a $1.2 million decrease in other expense, and a $989,000 decrease in premises and occupancy, partially offset by a $4.4 million increase in legal and professional services, driven by the $3.5 million reversal of the insurance claim receivable.
Three Months Ended
December 31,September 30,December 31,
(Dollars in thousands)202420242023
Noninterest expense
Compensation and benefits$50,387 $53,400 $51,907 
Premises and occupancy10,194 10,899 11,183 
Data processing7,754 7,777 7,409 
Other real estate owned operations, net(3)1 103 
FDIC insurance premiums1,950 1,922 4,267 
Legal and professional services9,041 4,980 4,663 
Marketing expense931 860 1,728 
Office expense1,128 1,046 1,367 
Loan expense556 734 437 
Deposit expense11,689 12,474 11,152 
Amortization of intangible assets2,730 2,762 3,022 
Other expense4,329 4,790 5,532 
Total noninterest expense$100,686 $101,645 $102,770 

Income Tax
 
For the fourth quarter of 2024, our income tax expense totaled $10.7 million, an effective tax rate of 24.1%, compared to income tax expense of $11.7 million, or 24.5%, for the third quarter of 2024, and income tax benefit of $56.5 million, or 29.4%, for the fourth quarter of 2023. The income tax benefit in the fourth quarter of 2023 was primarily attributable to the pretax loss from sales of AFS securities driven by the Company's balance sheet repositioning.

For the full year 2024, our income tax expense totaled $53.7 million, resulting in an effective tax rate of 25.3%, compared to income tax expense of $3.2 million and an effective tax rate of 9.4% for the full year 2023.

5

BALANCE SHEET HIGHLIGHTS

Loans

Loans held for investment totaled $12.04 billion at December 31, 2024, an increase of $4.6 million from September 30, 2024, and a decrease of $1.25 billion from December 31, 2023. The increase from September 30, 2024 was primarily driven by new loan production of $316.0 million and loan purchases of $401.3 million in commercial and industrial loans and $116.3 million in single family residential loans.

New origination activity during the fourth quarter of 2024 increased compared to both the third quarter of 2024 and fourth quarter of 2023. New loan commitments totaled $316.0 million, and new loan fundings totaled $193.8 million, compared to $104.1 million in loan commitments and $39.4 million in new loan fundings for the third quarter of 2024, and $128.1 million in loan commitments and $103.7 million in new loan fundings for the fourth quarter of 2023.

At December 31, 2024, the total loan-to-deposit ratio was 83.3%, compared to 83.1% and 88.6% at September 30, 2024 and December 31, 2023, respectively.

The following table presents the primary loan roll-forward activities for total gross loans, including both loans held for investment and loans held for sale, during the quarters indicated:
Three Months Ended
December 31,September 30,December 31,
(Dollars in thousands)202420242023
Beginning loan balance$12,051,250 $12,518,292 $13,319,591 
New commitments316,047 104,080 128,102 
Unfunded new commitments(122,224)(64,706)(24,429)
Net new fundings193,823 39,374 103,673 
Purchased loans517,578 — — 
Amortization/maturities/payoffs(709,073)(449,367)(422,607)
Net draws on existing lines of credit16,033 (50,982)354,711 
Loan sales(7,025)(3,628)(32,464)
Charge-offs(4,088)(2,439)(4,138)
Transferred to other real estate owned
— — (195)
Net increase (decrease)
7,248 (467,042)(1,020)
Ending gross loan balance before basis adjustment12,058,498 12,051,250 13,318,571 
Basis adjustment associated with fair value hedge (1)
(16,442)(16,153)(29,551)
Ending gross loan balance$12,042,056 $12,035,097 $13,289,020 
______________________________
(1) Represents the basis adjustment associated with the application of hedge accounting on certain loans.

6

The following table presents the composition of the loans held for investment as of the dates indicated:
 December 31,September 30,December 31,
(Dollars in thousands)202420242023
Investor loans secured by real estate
Commercial real estate (“CRE”) non-owner-occupied$2,131,112 $2,202,268 $2,421,772 
Multifamily5,326,009 5,388,847 5,645,310 
Construction and land379,143 445,146 472,544 
SBA secured by real estate (1)
28,777 32,228 36,400 
Total investor loans secured by real estate7,865,041 8,068,489 8,576,026 
Business loans secured by real estate (2)
CRE owner-occupied1,995,144 2,038,583 2,191,334 
Franchise real estate secured255,694 264,696 304,514 
SBA secured by real estate (3)
43,978 43,943 50,741 
Total business loans secured by real estate2,294,816 2,347,222 2,546,589 
Commercial loans (4)
Commercial and industrial1,486,340 1,316,517 1,790,608 
Franchise non-real estate secured213,357 237,702 319,721 
SBA non-real estate secured8,086 8,407 10,926 
Total commercial loans1,707,783 1,562,626 2,121,255 
Retail loans
Single family residential (5)
186,739 71,552 72,752 
Consumer1,804 1,361 1,949 
Total retail loans188,543 72,913 74,701 
Loans held for investment before basis adjustment (6)
12,056,183 12,051,250 13,318,571 
Basis adjustment associated with fair value hedge (7)
(16,442)(16,153)(29,551)
Loans held for investment12,039,741 12,035,097 13,289,020 
Allowance for credit losses for loans held for investment(178,186)(181,248)(192,471)
Loans held for investment, net$11,861,555 $11,853,849 $13,096,549 
Total unfunded loan commitments$1,532,623 $1,377,190 $1,703,470 
Loans held for sale, at lower of cost or fair value$2,315 $— $— 
___________________________________________
(1) SBA loans that are collateralized by hotel/motel real property.
(2) Loans to businesses that are collateralized by real estate where the operating cash flow of the business is the primary source of repayment.
(3) SBA loans that are collateralized by real property other than hotel/motel real property.
(4) Loans to businesses where the operating cash flow of the business is the primary source of repayment.
(5) Single family residential includes home equity lines of credit, as well as second trust deeds.
(6) Includes unamortized net purchase premiums of $9.1 million, $3.7 million, and $4.0 million, net deferred origination (fees) costs of $1.1 million, $1.5 million, and $(74,000), and unaccreted fair value net purchase discounts of $33.2 million, $35.9 million, and $43.3 million as of December 31, 2024, September 30, 2024, and December 31, 2023, respectively.
(7) Represents the basis adjustment associated with the application of hedge accounting on certain loans.
    
The total end of period weighted average interest rate on loans, excluding fees and discounts and impact from interest rate swaps designated as fair value hedges, at December 31, 2024 was 4.78%, compared to 4.82% at September 30, 2024 and 4.87% at December 31, 2023. The quarter-over-quarter and year-over-year decreases were primarily due to new loan fundings at lower coupon rates and the repricing of existing loans in response to decreases in benchmark interest rates, as well as customers paying down and paying off higher-rate loans.


7

The following table presents the composition of loan commitments originated during the quarters indicated:
Three Months Ended
 December 31,September 30,December 31,
(Dollars in thousands)202420242023
Investor loans secured by real estate
CRE non-owner-occupied$12,942 $5,200 $1,450 
Multifamily105,032 8,730 94,462 
Construction and land54,292 1,494 — 
Total investor loans secured by real estate172,266 15,424 95,912 
Business loans secured by real estate (1)
CRE owner-occupied27,949 13,307 3,870 
Franchise real estate secured1,300 — — 
SBA secured by real estate (2)
1,945 1,000 — 
Total business loans secured by real estate31,194 14,307 3,870 
Commercial loans (3)
Commercial and industrial97,363 64,267 24,766 
Franchise non-real estate secured1,200 — — 
SBA non-real estate secured2,649 — — 
Total commercial loans101,212 64,267 24,766 
Retail loans
Single family residential (4)
10,143 8,945 3,554 
Consumer1,232 1,137 — 
Total retail loans11,375 10,082 3,554 
Total loan commitments$316,047 $104,080 $128,102 
______________________________
(1) Loans to businesses that are collateralized by real estate where the operating cash flow of the business is the primary source of repayment.
(2) SBA loans that are collateralized by real property other than hotel/motel real property.
(3) Loans to businesses where the operating cash flow of the business is the primary source of repayment.
(4) Single family residential includes home equity lines of credit, as well as second trust deeds.

The weighted average interest rate on new loan commitments was 6.92% in the fourth quarter of 2024, compared to 8.43% in the third quarter of 2024, and 6.34% in the fourth quarter of 2023.

Allowance for Credit Losses
 
At December 31, 2024, our allowance for credit losses (“ACL”) on loans held for investment was $178.2 million, a decrease of $3.1 million from September 30, 2024, and a decrease of $14.3 million from December 31, 2023. The change in ACL from September 30, 2024 and December 31, 2023 primarily reflects changes in the size and composition of our loan portfolio and updates to the economic forecasts as well as net loan charge-offs during the respective periods.

During the fourth quarter of 2024, the Company incurred $1.4 million of net charge-offs, compared to $2.3 million of net charge-offs during the third quarter of 2024, and $3.9 million of net charge-offs during the fourth quarter of 2023, respectively.


8

The following table provides the allocation of the ACL for loans held for investment, as well as the activity in the ACL attributed to various segments in the loan portfolio as of and for the period indicated:

Three Months Ended December 31, 2024
(Dollars in thousands) Beginning ACL Balance  Charge-offs  Recoveries Provision for Credit Losses  Ending
ACL Balance
Investor loans secured by real estate
CRE non-owner occupied$29,274 $(2,360)$— $(506)$26,408 
Multifamily65,965 — — (12,660)53,305 
Construction and land10,984 — — (5,754)5,230 
SBA secured by real estate (1)
2,599 (290)108 (695)1,722 
Business loans secured by real estate (2)
CRE owner-occupied27,959 (379)— 4,214 31,794 
Franchise real estate secured5,114 — — 722 5,836 
SBA secured by real estate (3)
3,644 — 3 184 3,831 
Commercial loans (4)
Commercial and industrial24,982 (1,045)433 13,233 37,603 
Franchise non-real estate secured9,898 — 2,109 (1,213)10,794 
SBA non-real estate secured348 (1)2 10 359 
Retail loans
Single family residential (5)
388 — — 805 1,193 
Consumer loans93 (13)3 28 111 
Totals$181,248 $(4,088)$2,658 $(1,632)$178,186 
______________________________
(1) SBA loans that are collateralized by hotel/motel real property.
(2) Loans to businesses that are collateralized by real estate where the operating cash flow of the business is the primary source of repayment.
(3) SBA loans that are collateralized by real property other than hotel/motel real property.
(4) Loans to businesses where the operating cash flow of the business is the primary source of repayment.
(5) Single family residential includes home equity lines of credit, as well as second trust deeds.

The ratio of ACL to loans held for investment at December 31, 2024 was 1.48%, a decrease from 1.51% at September 30, 2024, and an increase from 1.45% at December 31, 2023. The fair value net discount on loans acquired through bank acquisitions was $33.2 million, or 0.28% of total loans held for investment, as of December 31, 2024, compared to $35.9 million, or 0.30% of total loans held for investment, as of September 30, 2024, and $43.3 million, or 0.33% of total loans held for investment, as of December 31, 2023.

Asset Quality

Nonperforming assets totaled $28.9 million, or 0.16% of total assets, at December 31, 2024, compared to $39.1 million, or 0.22% of total assets, at September 30, 2024, and $25.1 million, or 0.13% of total assets, at December 31, 2023. Loan delinquencies were $2.6 million, or 0.02% of loans held for investment, at December 31, 2024, compared to $9.9 million, or 0.08% of loans held for investment, at September 30, 2024, and $10.1 million, or 0.08% of loans held for investment, at December 31, 2023.

Classified loans totaled $106.2 million, or 0.88% of loans held for investment, at December 31, 2024, compared to $120.5 million, or 1.00% of loans held for investment, at September 30, 2024, and $142.2 million, or 1.07% of loans held for investment, at December 31, 2023.


9

The following table presents the asset quality metrics of the loan portfolio as of the dates indicated:
 December 31,September 30,December 31,
(Dollars in thousands)202420242023
Asset Quality
Nonaccrual loans held for investment
$28,031 $39,084 $24,817 
Nonaccrual loans held for sale
825 — — 
Other real estate owned— — 248 
Nonperforming assets$28,856 $39,084 $25,065 
Total classified assets (1)
$107,074 $120,484 $142,210 
Allowance for credit losses178,186 181,248 192,471 
Allowance for credit losses as a percent of total nonperforming loans636 %464 %776 %
Nonperforming loans as a percent of loans held for investment0.23 0.32 0.19 
Nonperforming assets as a percent of total assets0.16 0.22 0.13 
Classified loans to total loans held for investment0.88 1.00 1.07 
Classified assets to total assets0.60 0.67 0.75 
Net loan charge-offs for the quarter ended
$1,430 $2,306 $3,902 
Net loan charge-offs for the quarter to average total loans
0.01 %0.02 %0.03 %
Allowance for credit losses to loans held for investment (2)
1.48 1.51 1.45 
Delinquent Loans (3)
   
30 - 59 days$1,009 $2,008 $2,484 
60 - 89 days349 715 1,294 
90+ days1,261 7,143 6,276 
Total delinquency$2,619 $9,866 $10,054 
Delinquency as a percent of loans held for investment0.02 %0.08 %0.08 %
______________________________
(1) Includes substandard and doubtful loans, nonaccrual loans held for sale, and other real estate owned.
(2) At December 31, 2024, 21% of loans held for investment include a fair value net discount of $33.2 million, or 0.28% of loans held for investment. At September 30, 2024, 24% of loans held for investment include a fair value net discount of $35.9 million, or 0.30% of loans held for investment. At December 31, 2023, 24% of loans held for investment include a fair value net discount of $43.3 million, or 0.33% of loans held for investment.
(3) Nonaccrual loans are included in this aging analysis based on the loan's past due status.

Investment Securities

At December 31, 2024, AFS and held-to-maturity (“HTM”) investment securities were $1.68 billion and $1.71 billion, respectively, compared to $1.32 billion and $1.71 billion, respectively, at September 30, 2024, and $1.14 billion and $1.73 billion, respectively, at December 31, 2023.

In total, investment securities were $3.40 billion at December 31, 2024, an increase of $364.9 million from $3.03 billion at September 30, 2024 and an increase of $525.4 million from $2.87 billion at December 31, 2023. The increase in the fourth quarter of 2024 compared to the prior quarter was primarily driven by purchases of $704.6 million, predominantly short-term U.S. Treasury securities, as well as an improvement of $2.5 million in AFS investment securities mark-to-market unrealized loss, partially offset by principal payments, amortization, accretion, and redemptions aggregating to $342.2 million.

The increase in investment securities from December 31, 2023 was primarily attributable to purchases of $1.43 billion of AFS and HTM investment securities and an improvement of $18.8 million in AFS investment securities mark-to-market unrealized loss, partially offset by principal payments, amortization, accretion, and redemptions aggregating to $924.6 million.

10

Deposits

At December 31, 2024, total deposits were $14.46 billion, a decrease of $17.2 million, or 0.1%, from September 30, 2024, and a decrease of $531.9 million, or 3.5%, from December 31, 2023. The decrease from the prior quarter was primarily driven by decreases of $163.1 million in retail certificates of deposit and $22.1 million in noninterest-bearing deposits, partially offset by increases of $135.5 million in interest-bearing checking and $32.4 million in money market and savings. The decrease from December 31, 2023 was attributable to decreases of $315.8 million noninterest-bearing checking and $310.1 million in brokered certificates of deposit, partially offset by an increase of $125.3 million in retail certificates of deposit.

At December 31, 2024, non-maturity deposits(1) totaled $12.35 billion, or 85.4% of total deposits, an increase of $145.8 million, or 1.2%, from September 30, 2024, and a decrease of $347.1 million, or 2.7%, from December 31, 2023.

At December 31, 2024, maturity deposits totaled $2.11 billion, a decrease of $163.0 million, or 7.2%, from September 30, 2024, and a decrease of $184.8 million, or 8.1%, from December 31, 2023. The decrease in the fourth quarter of 2024 compared to the prior quarter was primarily driven by the decrease of $163.1 million in retail certificates of deposit. The decrease from December 31, 2023 was largely due to the reduction of higher cost brokered certificates of deposit, partially offset by the increase in retail certificates of deposit.

The weighted average cost of total deposits for the fourth quarter of 2024 was 1.79%, compared with 1.84% for the third quarter of 2024 and 1.56% for the fourth quarter of 2023. The decrease in the weighted average cost of deposits for the fourth quarter of 2024 compared to the third quarter of 2024 was principally driven by lower pricing in the retail certificates of deposit category and lower average balances in higher-costing maturity deposits. The increase in the weighted average cost of deposits for the fourth quarter of 2024 compared to the fourth quarter of 2023 was principally driven by higher pricing across all deposit categories. The weighted average cost of non-maturity deposits(1) for the fourth quarter of 2024 was 1.28%, compared to 1.27% for the third quarter of 2024, and 1.02% for the fourth quarter of 2023.

At December 31, 2024, the end-of-period weighted average rate of total deposits was 1.72%, compared to 1.80% at September 30, 2024 and 1.55% at December 31, 2023. At December 31, 2024, the end-of-period weighted average rate of non-maturity deposits was 1.24%, compared to 1.26% at September 30, 2024 and 1.04% at December 31, 2023.

At December 31, 2024, the Company’s FDIC-insured deposits as a percentage of total deposits was 60%, and insured and collateralized deposits comprised 66% of total deposits at December 31, 2024, consistent with the ratios at September 30, 2024 and December 31, 2023.











_____________________________________________________________
(1) Reconciliations of the non-GAAP measures are set forth at the end of this press release.
11

The following table presents the composition of deposits as of the dates indicated.

 December 31,September 30,December 31,
(Dollars in thousands)202420242023
Deposit Accounts
Noninterest-bearing checking$4,617,013 $4,639,077 $4,932,817 
Interest-bearing:
Checking2,898,810 2,763,353 2,899,621 
Money market/savings4,837,929 4,805,516 4,868,442 
Total non-maturity deposits (1)
12,353,752 12,207,946 12,700,880 
Retail certificates of deposit1,809,818 1,972,962 1,684,560 
Wholesale/brokered certificates of deposit300,132 300,019 610,186 
Total non-core deposits2,109,950 2,272,981 2,294,746 
Total deposits$14,463,702 $14,480,927 $14,995,626 
Cost of deposits1.79 %1.84 %1.56 %
Cost of non-maturity deposits (1)
1.28 1.27 1.02 
Noninterest-bearing deposits as a percent of total deposits31.9 32.0 32.9 
Non-maturity deposits (1) as a percent of total deposits
85.4 84.3 84.7 
______________________________
(1) Reconciliations of the non-GAAP measures are set forth at the end of this press release.


Borrowings

At December 31, 2024, total borrowings amounted to $272.4 million, an increase of $129,000 from September 30, 2024 and a decrease of $659.4 million from December 31, 2023. Total borrowings at December 31, 2024 were comprised entirely of $272.4 million in subordinated debentures. The slight increase in borrowings at December 31, 2024 as compared to September 30, 2024 was due to the amortization of subordinated debt issuance costs. The decrease in average borrowings and borrowings at December 31, 2024, compared to December 31, 2023, was primarily due to the redemptions and maturities of higher cost FHLB term advances and the maturity of $60.0 million in subordinated debentures.

As of December 31, 2024, our unused borrowing capacity was $9.03 billion, which consists of available lines of credit with FHLB and other correspondent banks, as well as access through the Federal Reserve Bank's discount window, which was not utilized during the fourth quarter of 2024.

Capital Ratios
 
At December 31, 2024, our common stockholder's equity was $2.96 billion, or 16.51% of total assets, compared with $2.94 billion, or 16.44% of total assets, at September 30, 2024, and $2.88 billion, or 15.15% of total assets, at December 31, 2023. At December 31, 2024, the ratio of tangible common equity to total assets(1) increased 9 and 120 basis points to 11.92%, compared with 11.83% at September 30, 2024, and 10.72% at December 31, 2023, respectively. Tangible book value per share(1) increased $0.16 and $0.75 to $20.97, compared with $20.81 at September 30, 2024 and $20.22 at December 31, 2023, respectively.




______________________________
(1) Reconciliations of the non-GAAP measures are set forth at the end of this press release.
12

The Company implemented the current expected credit losses (“CECL”) model on January 1, 2020 and elected to phase in the full effect of CECL on regulatory capital over the five-year transition period. In the first quarter of 2022, the Company began phasing into regulatory capital the cumulative adjustments at the end of the second year of the transition period at 25% per year. At December 31, 2024, the Company and Bank were in compliance with the capital conservation buffer requirement and exceeded the minimum Common Equity Tier 1, Tier 1, and total capital ratios, inclusive of the fully phased-in capital conservation buffer of 7.0%, 8.5% and 10.5%, respectively, and the Bank qualified as “well-capitalized” for purposes of the federal bank regulatory prompt corrective action regulations.

The following table presents capital ratios and share data as of the dates indicated:
 December 31,September 30,December 31,
Capital Ratios202420242023
Pacific Premier Bancorp, Inc. Consolidated
Tier 1 leverage ratio12.31 %12.19 %11.03 %
Common equity tier 1 risk-based capital ratio17.05 16.83 14.32 
Tier 1 risk-based capital ratio17.05 16.83 14.32 
Total risk-based capital ratio20.28 20.05 17.29 
Tangible common equity ratio (1)
11.92 11.83 10.72 
Pacific Premier Bank
Tier 1 leverage ratio13.41 %13.45 %12.43 %
Common equity tier 1 risk-based capital ratio18.57 18.56 16.13 
Tier 1 risk-based capital ratio18.57 18.56 16.13 
Total risk-based capital ratio19.82 19.81 17.23 
Share Data   
Book value per share$30.65 $30.52 $30.07 
Tangible book value per share (1)
20.97 20.81 20.22 
Common equity dividends declared per share0.33 0.33 0.33 
Closing stock price (2)
24.92 25.16 29.11 
Shares issued and outstanding96,441,667 96,462,767 95,860,092 
Market Capitalization (2)(3)
$2,403,326 $2,427,003 $2,790,487 
______________________________
(1) A reconciliation of the non-GAAP measures of tangible common equity and tangible book value per share to the GAAP measures of common stockholders' equity and book value per share is set forth at the end of this press release.
(2) As of the last trading day prior to period end.
(3) Dollars in thousands.

Dividend and Stock Repurchase Program
 
On January 21, 2025, the Company's Board of Directors declared a $0.33 per share dividend, payable on February 10, 2025 to stockholders of record on February 3, 2025. In January 2021, the Company’s Board of Directors approved a stock repurchase program, which authorized the repurchase of up to 4,725,000 shares of its common stock. During the fourth quarter of 2024, the Company did not repurchase any shares of common stock.

13

Conference Call and Webcast
 
The Company will host a conference call at 9:00 a.m. PT / 12:00 p.m. ET on January 23, 2025 to discuss its financial results. Analysts and investors may participate in the question-and-answer session. A live webcast will be available on the Webcasts page of the Company's investor relations website. An archived version of the webcast will be available in the same location shortly after the live call has ended. The conference call can be accessed by telephone at (866) 290-5977. Participants should ask to be joined into the Pacific Premier Bancorp, Inc. call. Additionally, a telephone replay will be made available through January 30, 2025 at (877) 344-7529, access code 8161362.

About Pacific Premier Bancorp, Inc.

Pacific Premier Bancorp, Inc. (Nasdaq: PPBI) is the parent company of Pacific Premier Bank, National Association, a nationally chartered commercial bank focused on serving small, middle-market, and corporate businesses throughout the western United States in major metropolitan markets in California, Washington, Oregon, Arizona, and Nevada. Founded in 1983, Pacific Premier Bank has grown to become one of the largest banks headquartered in the western region of the United States, with approximately $18 billion in total assets. Pacific Premier Bank provides banking products and services, including deposit accounts, digital banking, and treasury management services, to businesses, professionals, entrepreneurs, real estate investors, and nonprofit organizations. Pacific Premier Bank also offers a wide array of loan products, such as commercial business loans, lines of credit, SBA loans, commercial real estate loans, agribusiness loans, franchise lending, home equity lines of credit, and construction loans. Pacific Premier Bank offers commercial escrow services and facilitates 1031 Exchange transactions through its Commerce Escrow division. Pacific Premier Bank offers clients IRA custodial services through its Pacific Premier Trust division, which has approximately $18 billion of assets under custody and over 31,000 client accounts comprised of self-directed investors, financial institutions, capital syndicators, and financial advisors. Additionally, Pacific Premier Bank provides nationwide customized banking solutions to Homeowners' Associations and Property Management companies. Pacific Premier Bank is an Equal Housing Lender and Member FDIC. For additional information about Pacific Premier Bancorp, Inc. and Pacific Premier Bank, visit our website: www.ppbi.com.
 
FORWARD-LOOKING STATEMENTS
 
The statements contained herein that are not historical facts are forward-looking statements based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company including, without limitation, plans, strategies and goals, and statements about the Company’s expectations regarding revenue and asset growth, financial performance and profitability, loan and deposit growth, yields and returns, loan diversification and credit management, stockholder value creation, tax rates, liquidity, and the impact of acquisitions we have made or may make.

Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the Company. There can be no assurance that future developments affecting the Company will be the same as those anticipated by management. The Company cautions readers that a number of important factors could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements. These risks and uncertainties include, but are not limited to, the following: the strength of the United States (“U.S.”) economy in general and the strength of the local economies in which we conduct operations; adverse developments in the banking industry and the potential impact of such developments on customer confidence, liquidity, and regulatory responses to these developments; the effects of, and changes in, trade, monetary, and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; interest rate, liquidity, economic, market, credit, operational, and inflation risks associated with our business, including the speed and predictability of changes in these risks; our ability to attract and retain deposits and access to other sources of liquidity, particularly in a rising or high interest rate environment, and the quality and composition of our deposits; business and economic conditions generally and in the financial services industry, nationally and within our current and future geographic markets, including the tight labor market,
ineffective management of the U.S. Federal budget or debt, or turbulence or uncertainty in domestic or foreign financial markets; the effect of acquisitions we have made or may make, including, without limitation, the failure to achieve the expected revenue growth and/or expense savings from such acquisitions, and/or the failure to effectively integrate an acquisition target into our operations; the timely development of competitive new products and services and the acceptance of these products and services by new and existing customers; possible impairment charges to goodwill, including any impairment that may result from increased volatility in our stock price; the impact of changes in financial services policies, laws, and regulations, including those concerning taxes, banking, securities, and insurance, and the application thereof by regulatory bodies; compliance risks, including any increased costs of monitoring, testing, and maintaining compliance with complex laws and regulations; the effectiveness of our risk management framework and quantitative models; the effect of changes in accounting policies and practices or accounting standards, as may be adopted from time-to-time by bank regulatory agencies, the U.S. Securities and Exchange Commission (“SEC”), the Public Company Accounting Oversight Board, the Financial Accounting Standards Board or other accounting standards setters; possible credit-related impairments of securities held by us; changes in the level of our nonperforming assets and charge-offs; the impact of governmental efforts to restructure or adjust the U.S. financial regulatory system; the impact of recent or future changes in the FDIC insurance assessment rate or the rules and regulations related to the calculation of the FDIC insurance assessment amount, including any special assessments; changes in consumer spending, borrowing, and savings habits; the effects of concentrations in our loan portfolio, including commercial real estate and the risks of geographic and industry concentrations; the possibility that we may reduce or discontinue the payments of dividends on our common stock; the possibility that we may discontinue, reduce or otherwise limit the level of repurchases of our common stock we may make from time to time pursuant to our stock repurchase program; changes in the financial performance and/or condition of our borrowers; changes in the competitive environment among financial and bank holding companies and other financial service providers; geopolitical conditions, including acts or threats of terrorism, actions taken by the United States or other governments in response to acts or threats of terrorism, and/or military conflicts, including the war between Russia and Ukraine, conflict in the Middle East, and trade tensions, all of which could impact business and economic conditions in the United States and abroad; public health crises and pandemics, and their effects on the economic and business environments in which we operate, including on our credit quality and business operations, as well as the impact on general economic and financial market conditions; cybersecurity threats and the cost of defending against them; climate change, including the enhanced regulatory, compliance, credit, and reputational risks and costs; natural disasters, earthquakes, fires, and severe weather; direct and indirect costs and impacts on clients, the Company and its employees from the January 2025 Los Angeles County wildfires, including potential adverse changes to the level of our nonperforming assets and charge-offs; unanticipated regulatory or legal proceedings; and our ability to manage the risks involved in the foregoing. Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Company's 2023 Annual Report on Form 10-K filed with the SEC and available at the SEC’s Internet site (http://www.sec.gov).

The Company undertakes no obligation to revise or publicly release any revision or update to these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made.

Contacts:
 
Pacific Premier Bancorp, Inc.
 
Steven R. Gardner
Chairman, Chief Executive Officer, and President
(949) 864-8000
 
Ronald J. Nicolas, Jr.
Senior Executive Vice President and Chief Financial Officer
(949) 864-8000

Matthew J. Lazzaro
Senior Vice President, and Director of Investor Relations
(949) 243-1082
14

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
 December 31,September 30,June 30,March 31,December 31,
(Dollars in thousands)20242024202420242023
ASSETS
Cash and cash equivalents$609,330 $982,249 $899,817 $1,028,818 $936,473 
Interest-bearing time deposits with financial institutions1,246 1,246 996 995 995 
Investments held-to-maturity, at amortized cost, net of allowance for credit losses1,711,804 1,713,575 1,710,141 1,720,481 1,729,541 
Investment securities available for sale, at fair value1,683,215 1,316,546 1,320,050 1,154,021 1,140,071 
FHLB, FRB, and other stock97,539 97,336 97,037 97,063 99,225 
Loans held for sale, at lower of amortized cost or fair value
2,315 — 140 — — 
Loans held for investment12,039,741 12,035,097 12,489,951 13,012,071 13,289,020 
Allowance for credit losses(178,186)(181,248)(183,803)(192,340)(192,471)
Loans held for investment, net11,861,555 11,853,849 12,306,148 12,819,731 13,096,549 
Accrued interest receivable67,953 64,803 69,629 67,642 68,516 
Other real estate owned— — — 248 248 
Premises and equipment, net
48,580 49,807 52,137 54,789 56,676 
Deferred income taxes, net100,295 104,564 108,607 111,390 113,580 
Bank owned life insurance484,952 481,309 477,694 474,404 471,178 
Intangible assets32,194 34,924 37,686 40,449 43,285 
Goodwill901,312 901,312 901,312 901,312 901,312 
Other assets301,295 308,123 350,931 341,838 368,996 
Total assets$17,903,585 $17,909,643 $18,332,325 $18,813,181 $19,026,645 
LIABILITIES 
Deposit accounts: 
Noninterest-bearing checking$4,617,013 $4,639,077 $4,616,124 $4,997,636 $4,932,817 
Interest-bearing:
Checking2,898,810 2,763,353 2,776,212 2,785,626 2,899,621 
Money market/savings4,837,929 4,805,516 4,844,585 5,037,636 4,868,442 
Retail certificates of deposit1,809,818 1,972,962 1,906,552 1,794,813 1,684,560 
Wholesale/brokered certificates of deposit300,132 300,019 484,181 572,117 610,186 
Total interest-bearing9,846,689 9,841,850 10,011,530 10,190,192 10,062,809 
Total deposits14,463,702 14,480,927 14,627,654 15,187,828 14,995,626 
FHLB advances and other borrowings— — 200,000 200,000 600,000 
Subordinated debentures272,449 272,320 332,160 332,001 331,842 
Accrued expenses and other liabilities211,691 212,459 248,747 190,551 216,596 
Total liabilities14,947,842 14,965,706 15,408,561 15,910,380 16,144,064 
STOCKHOLDERS’ EQUITY 
Common stock942 942 941 941 938 
Additional paid-in capital2,395,339 2,389,767 2,383,615 2,378,171 2,377,131 
Retained earnings635,268 633,350 629,341 619,405 604,137 
Accumulated other comprehensive loss(75,806)(80,122)(90,133)(95,716)(99,625)
Total stockholders' equity2,955,743 2,943,937 2,923,764 2,902,801 2,882,581 
Total liabilities and stockholders' equity$17,903,585 $17,909,643 $18,332,325 $18,813,181 $19,026,645 
15

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 Three Months EndedYear Ended
 December 31,September 30,December 31,December 31,December 31,
(Dollars in thousands, except per share data)20242024202320242023
INTEREST INCOME   
Loans$151,275 $163,409 $176,773 $655,206 $717,615 
Investment securities and other interest-earning assets44,182 42,217 40,419 167,362 170,370 
Total interest income195,457 205,626 217,192 822,568 887,985 
INTEREST EXPENSE  
Deposits66,355 67,898 60,915 257,988 217,447 
FHLB advances and other borrowings5 1,511 4,927 8,083 27,255 
Subordinated debentures4,565 5,319 4,561 19,546 18,244 
Total interest expense70,925 74,728 70,403 285,617 262,946 
Net interest income before provision for credit losses124,532 130,898 146,789 536,951 625,039 
Provision for credit losses(814)486 1,696 4,789 10,129 
Net interest income after provision for credit losses125,346 130,412 145,093 532,162 614,910 
NONINTEREST INCOME  
Loan servicing income520 525 359 2,084 1,958 
Service charges on deposit accounts2,766 2,711 2,648 10,875 10,620 
Other service fee income285 306 322 1,236 1,213 
Debit card interchange fee income886 876 844 3,452 3,485 
Earnings on bank owned life insurance4,382 4,335 3,678 17,094 14,118 
Net gain (loss) from sales of loans
93 47 (4)205 415 
Net (loss) from sales of investment securities
— — (254,065)— (253,927)
Trust custodial account fees8,714 8,813 9,388 37,119 39,129 
Escrow and exchange fees768 673 1,074 2,839 3,994 
Other income1,561 581 1,562 7,934 5,077 
Total noninterest income (loss) 19,975 18,867 (234,194)82,838 (173,918)
NONINTEREST EXPENSE  
Compensation and benefits50,387 53,400 51,907 211,057 213,692 
Premises and occupancy10,194 10,899 11,183 42,380 45,922 
Data processing7,754 7,777 7,409 30,796 29,679 
Other real estate owned operations, net(3)1 103 44 215 
FDIC insurance premiums1,950 1,922 4,267 8,374 11,373 
Legal and professional services9,041 4,980 4,663 19,242 19,123 
Marketing expense931 860 1,728 5,073 7,080 
Office expense1,128 1,046 1,367 4,344 4,958 
Loan expense556 734 437 2,900 2,126 
Deposit expense11,689 12,474 11,152 49,117 39,593 
Amortization of intangible assets2,730 2,762 3,022 11,091 12,303 
Other expense4,329 4,790 5,532 18,113 20,887 
Total noninterest expense100,686 101,645 102,770 402,531 406,951 
Net income (loss) before income taxes44,635 47,634 (191,871)212,469 34,041 
Income tax expense (benefit) 10,742 11,655 (56,495)53,667 3,189 
Net income (loss) $33,893 $35,979 $(135,376)$158,802 $30,852 
EARNINGS (LOSS) PER SHARE  
Basic$0.35 $0.37 $(1.44)$1.65 $0.31 
Diluted0.35 0.37 (1.44)1.65 0.31 
WEIGHTED AVERAGE SHARES OUTSTANDING  
Basic94,686,91694,650,09694,233,81394,579,358 94,113,132 
Diluted94,801,77294,775,92794,233,81394,682,886 94,236,875 
16

SELECTED FINANCIAL DATA

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCES AND YIELD DATA
(Unaudited)
Three Months Ended
 December 31, 2024September 30, 2024December 31, 2023
(Dollars in thousands)Average BalanceInterestAverage
 Yield/
 Cost		Average BalanceInterestAverage
 Yield/
 Cost		Average BalanceInterestAverage Yield/ Cost
Assets
Interest-earning assets:         
Cash and cash equivalents$1,128,587 $12,000 4.23 %$1,098,455 $13,346 4.83 %$1,281,793 $15,744 4.87 %
Investment securities3,524,467 32,182 3.65 3,145,214 28,871 3.67 3,203,608 24,675 3.08 
Loans receivable, net (1) (2)
11,738,332 151,275 5.13 12,247,435 163,409 5.31 13,257,767 176,773 5.29 
Total interest-earning assets16,391,386 195,457 4.74 16,491,104 205,626 4.96 17,743,168 217,192 4.86 
Noninterest-earning assets1,764,352 1,751,309 1,881,777 
Total assets$18,155,738 $18,242,413 $19,624,945 
Liabilities and Equity
Interest-bearing deposits:
Interest checking$2,878,840 $11,776 1.63 %$2,707,440 $10,848 1.59 %$3,037,642 $11,170 1.46 %
Money market4,623,754 28,169 2.42 4,607,486 28,118 2.43 4,525,403 22,038 1.93 
Savings258,717 254 0.39 263,570 246 0.37 308,968 190 0.24 
Retail certificates of deposit1,916,788 22,287 4.63 1,944,685 23,202 4.75 1,604,507 16,758 4.14 
Wholesale/brokered certificates of deposit300,065 3,869 5.13 448,820 5,484 4.86 918,596 10,759 4.65 
Total interest-bearing deposits9,978,164 66,355 2.65 9,972,001 67,898 2.71 10,395,116 60,915 2.32 
FHLB advances and other borrowings359 5 5.54 128,413 1,511 4.68 610,913 4,927 3.20 
Subordinated debentures272,391 4,565 6.62 313,990 5,319 6.70 331,776 4,561 5.50 
Total borrowings272,750 4,570 6.62 442,403 6,830 6.12 942,689 9,488 4.01 
Total interest-bearing liabilities10,250,914 70,925 2.75 10,414,404 74,728 2.85 11,337,805 70,403 2.46 
Noninterest-bearing deposits4,730,142 4,683,477 5,141,585 
Other liabilities232,560 215,372 296,604 
Total liabilities15,213,616 15,313,253 16,775,994 
Stockholders' equity2,942,122 2,929,160 2,848,951 
Total liabilities and equity$18,155,738 $18,242,413 $19,624,945 
Net interest income$124,532 $130,898 $146,789 
Net interest margin (3)
  3.02 %  3.16 %3.28 %
Cost of deposits (4)
1.79 1.84 1.56 
Cost of funds (5)
1.88 1.97 1.69 
Cost of non-maturity deposits (6)
1.28 1.27 1.02 
Ratio of interest-earning assets to interest-bearing liabilities159.90   158.35 156.50 
17

 
Year Ended December 31,
 20242023
(Dollars in thousands)Average
Balance		InterestAverage
Yield/Cost		Average
Balance		InterestAverage
Yield/Cost
Assets      
Interest-earning assets:      
Cash and cash equivalents$1,125,605 $52,651 4.68 %$1,437,074 $67,134 4.67 %
Investment securities3,146,724 114,711 3.65 3,778,650 103,236 2.73 
Loans receivable, net (1)(2)
12,462,258 655,206 5.26 13,759,815 717,615 5.22 
Total interest-earning assets16,734,587 822,568 4.92 18,975,539 887,985 4.68 
Noninterest-earning assets1,770,787   1,812,254   
Total assets$18,505,374   $20,787,793   
Liabilities and Equity      
Interest-bearing deposits:      
Interest checking$2,793,146 $42,704 1.53 %$3,152,823 $36,520 1.16 %
Money market4,647,811 106,126 2.28 4,667,007 69,917 1.50 
Savings270,408 951 0.35 360,546 915 0.25 
Retail certificates of deposit1,855,343 85,679 4.62 1,385,531 48,237 3.48 
Wholesale/brokered certificates of deposit464,619 22,528 4.85 1,434,563 61,858 4.31 
Total interest-bearing deposits10,031,327 257,988 2.57 11,000,470 217,447 1.98 
FHLB advances and other borrowings211,144 8,083 3.83 798,667 27,255 3.41 
Subordinated debentures312,497 19,546 6.22 331,534 18,244 5.50 
Total borrowings523,641 27,629 5.25 1,130,201 45,499 4.03 
Total interest-bearing liabilities10,554,968 285,617 2.71 12,130,671 262,946 2.17 
Noninterest-bearing deposits4,808,084   5,564,887   
Other liabilities223,419   247,946   
Total liabilities15,586,471   17,943,504   
Stockholders’ equity2,918,903   2,844,289   
Total liabilities and equity$18,505,374   $20,787,793   
Net interest income $536,951   $625,039  
Net interest margin (3)
  3.21   3.29 
Cost of deposits (4)
1.74 1.31 
Cost of funds (5)
1.86 1.49 
Cost of non-maturity deposits (6)
1.20 0.78 
Ratio of interest-earning assets to interest-bearing liabilities 158.55   156.43 
______________________________    
(1) Average balance includes loans held for sale and nonperforming loans and is net of deferred loan origination fees/costs and discounts/premiums, and the basis adjustments of certain loans included in fair value hedging relationships.
(2) Interest income includes net discount accretion of $2.7 million, $2.6 million, and $2.6 million, for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively, and $9.7 million and $10.2 million, respectively, for the years ended December 31, 2024 and 2023, respectively.
(3) Represents net interest income divided by average interest-earning assets.
(4) Represents annualized interest expense on deposits divided by the sum of average interest-bearing deposits and noninterest-bearing deposits.
(5) Represents annualized total interest expense divided by the sum of average total interest-bearing liabilities and noninterest-bearing deposits.
(6) Reconciliations of the non-GAAP measures are set forth at the end of this press release.
18

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
LOAN PORTFOLIO COMPOSITION
(Unaudited)
 December 31,September 30,June 30,March 31,December 31,
(Dollars in thousands)20242024202420242023
Investor loans secured by real estate
CRE non-owner-occupied$2,131,112 $2,202,268 $2,245,474 $2,309,252 $2,421,772 
Multifamily5,326,009 5,388,847 5,473,606 5,558,966 5,645,310 
Construction and land379,143 445,146 453,799 486,734 472,544 
SBA secured by real estate (1)
28,777 32,228 33,245 35,206 36,400 
Total investor loans secured by real estate7,865,041 8,068,489 8,206,124 8,390,158 8,576,026 
Business loans secured by real estate (2)
CRE owner-occupied1,995,144 2,038,583 2,096,485 2,149,362 2,191,334 
Franchise real estate secured255,694 264,696 274,645 294,938 304,514 
SBA secured by real estate (3)
43,978 43,943 46,543 48,426 50,741 
Total business loans secured by real estate2,294,816 2,347,222 2,417,673 2,492,726 2,546,589 
Commercial loans (4)
Commercial and industrial1,486,340 1,316,517 1,554,735 1,774,487 1,790,608 
Franchise non-real estate secured213,357 237,702 257,516 301,895 319,721 
SBA non-real estate secured8,086 8,407 10,346 10,946 10,926 
Total commercial loans1,707,783 1,562,626 1,822,597 2,087,328 2,121,255 
Retail loans
Single family residential (5)
186,739 71,552 70,380 72,353 72,752 
Consumer1,804 1,361 1,378 1,830 1,949 
Total retail loans188,543 72,913 71,758 74,183 74,701 
Loans held for investment before basis adjustment (6)
12,056,183 12,051,250 12,518,152 13,044,395 13,318,571 
Basis adjustment associated with fair value hedge (7)
(16,442)(16,153)(28,201)(32,324)(29,551)
Loans held for investment12,039,741 12,035,097 12,489,951 13,012,071 13,289,020 
Allowance for credit losses for loans held for investment(178,186)(181,248)(183,803)(192,340)(192,471)
Loans held for investment, net$11,861,555 $11,853,849 $12,306,148 $12,819,731 $13,096,549 
Loans held for sale, at lower of cost or fair value$2,315 $— $140 $— $— 
______________________________
(1) SBA loans that are collateralized by hotel/motel real property.
(2) Loans to businesses that are collateralized by real estate where the operating cash flow of the business is the primary source of repayment.
(3) SBA loans that are collateralized by real property other than hotel/motel real property.
(4) Loans to businesses where the operating cash flow of the business is the primary source of repayment.
(5) Single family residential includes home equity lines of credit, as well as second trust deeds.
(6) Includes unamortized net purchase premiums of $9.1 million, $3.7 million, $3.8 million, $3.8 million, and $4.0 million, net deferred origination costs (fees) of $1.1 million, $1.5 million, $1.4 million, $797,000, and $(74,000), and unaccreted fair value net purchase discounts of $33.2 million, $35.9 million, $38.6 million, $41.2 million, and $43.3 million as of December 31, 2024, September 30, 2024, June 30, 2024, March 31, 2024, and December 31, 2023 respectively.
(7) Represents the basis adjustment associated with the application of hedge accounting on certain loans.

19

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
ASSET QUALITY INFORMATION
(Unaudited)
 December 31,September 30,June 30,March 31,December 31,
(Dollars in thousands)20242024202420242023
Asset Quality
Nonaccrual loans held for investment
$28,031 $39,084 $52,119 $63,806 $24,817 
Nonaccrual loans held for sale
825 — — — — 
Other real estate owned— — — 248 248 
Nonperforming assets$28,856 $39,084 $52,119 $64,054 $25,065 
Total classified assets (1)
$107,074 $120,484 $183,833 $204,937 $142,210 
Allowance for credit losses178,186 181,248 183,803 192,340 192,471 
Allowance for credit losses as a percent of total nonperforming loans636 %464 %353 %301 %776 %
Nonperforming loans as a percent of loans held for investment0.23 0.32 0.42 0.49 0.19 
Nonperforming assets as a percent of total assets0.16 0.22 0.28 0.34 0.13 
Classified loans to total loans held for investment0.88 1.00 1.47 1.57 1.07 
Classified assets to total assets0.60 0.67 1.00 1.09 0.75 
Net loan charge-offs for the quarter ended
$1,430 $2,306 $10,293 $6,419 $3,902 
Net loan charge-offs for the quarter to average total loans
0.01 %0.02 %0.08 %0.05 %0.03 %
Allowance for credit losses to loans held for investment (2)
1.48 1.51 1.47 1.48 1.45 
Delinquent Loans (3)
     
30 - 59 days$1,009 $2,008 $4,985 $1,983 $2,484 
60 - 89 days349 715 3,289 974 1,294 
90+ days1,261 7,143 9,649 9,221 6,276 
Total delinquency$2,619 $9,866 $17,923 $12,178 $10,054 
Delinquency as a percent of loans held for investment0.02 %0.08 %0.14 %0.09 %0.08 %
______________________________
(1) Includes substandard and doubtful loans, nonaccrual loans held for sale, and other real estate owned.
(2) At December 31, 2024, 21% of loans held for investment include a fair value net discount of $33.2 million, or 0.28% of loans held for investment. At September 30, 2024, 24% of loans held for investment include a fair value net discount of $35.9 million, or 0.30% of loans held for investment. At June 30, 2024, 25% of loans held for investment include a fair value net discount of $38.6 million, or 0.31% of loans held for investment. At March 31, 2024, 25% of loans held for investment include a fair value net discount $41.2 million, or 0.32% of loans held for investment. At December 31, 2023, 24% of loans held for investment include a fair value net discount of $43.3 million, or 0.33% of loans held for investment.
(3) Nonaccrual loans are included in this aging analysis based on the loan's past due status.

20

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
NONACCRUAL LOANS (1)
(Unaudited)
(Dollars in thousands)Collateral Dependent LoansACLNon-Collateral Dependent LoansACLTotal Nonaccrual LoansNonaccrual Loans With No ACL
December 31, 2024
Investor loans secured by real estate
CRE non-owner-occupied$15,423 $— $— $— $15,423 $15,423 
SBA secured by real estate (2)
409 — — — 409 409 
Total investor loans secured by real estate15,832 — — — 15,832 15,832 
Commercial loans (3)
Commercial and industrial1,241 — 10,938 — 12,179 12,179 
SBA not secured by real estate20 — — — 20 20 
Total commercial loans1,261 — 10,938 — 12,199 12,199 
Totals nonaccrual loans$17,093 $— $10,938 $— $28,031 $28,031 
______________________________
(1) The ACL for nonaccrual loans is determined based on a discounted cash flow methodology unless the loan is considered collateral dependent. The ACL for collateral dependent loans is determined based on the estimated fair value of the underlying collateral.
(2) SBA loans that are collateralized by hotel/motel real property.
(3) Loans to businesses where the operating cash flow of the business is the primary source of repayment.
21

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
PAST DUE STATUS
(Unaudited)
Days Past Due (7)
(Dollars in thousands)Current30-5960-8990+Total
December 31, 2024
Investor loans secured by real estate
CRE non-owner-occupied$2,131,112 $— $— $— $2,131,112 
Multifamily5,326,009 — — — 5,326,009 
Construction and land379,143 — — — 379,143 
SBA secured by real estate (1)
28,777 — — — 28,777 
Total investor loans secured by real estate7,865,041 — — — 7,865,041 
Business loans secured by real estate (2)
CRE owner-occupied1,995,144 — — — 1,995,144 
Franchise real estate secured255,694 — — — 255,694 
SBA secured by real estate (3)
43,978 — — — 43,978 
Total business loans secured by real estate2,294,816 — — — 2,294,816 
Commercial loans (4)
Commercial and industrial1,483,926 824 349 1,241 1,486,340 
Franchise non-real estate secured213,357 — — — 213,357 
SBA not secured by real estate8,017 49 — 20 8,086 
Total commercial loans1,705,300 873 349 1,261 1,707,783 
Retail loans
Single family residential (5)
186,603 136 — — 186,739 
Consumer loans1,804 — — — 1,804 
Total retail loans188,407 136 — — 188,543 
Loans held for investment before basis adjustment (6)
$12,053,564 $1,009 $349 $1,261 $12,056,183 
______________________________
(1) SBA loans that are collateralized by hotel/motel real property.
(2) Loans to businesses that are collateralized by real estate where the operating cash flow of the business is the primary source of repayment.
(3) SBA loans that are collateralized by real property other than hotel/motel real property.
(4) Loans to businesses where the operating cash flow of the business is the primary source of repayment.
(5) Single family residential includes home equity lines of credit, as well as second trust deeds.
(6) Excludes the basis adjustment of $16.4 million to the carrying amount of certain loans included in fair value hedging relationships.
(7) Nonaccrual loans are included in this aging analysis based on the loan's past due status.

22

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
CREDIT RISK GRADES
(Unaudited)
(Dollars in thousands)PassSpecial
Mention		SubstandardDoubtfulTotal Gross
Loans
December 31, 2024
Investor loans secured by real estate
CRE non-owner-occupied$2,093,693 $4,449 $32,970 $— $2,131,112 
Multifamily5,298,289 27,720 — — 5,326,009 
Construction and land369,335 9,808 — — 379,143 
SBA secured by real estate (1)
24,048 — 4,729 — 28,777 
Total investor loans secured by real estate7,785,365 41,977 37,699 — 7,865,041 
Business loans secured by real estate (2)
CRE owner-occupied1,916,321 38,389 40,434 — 1,995,144 
Franchise real estate secured241,010 14,684 — — 255,694 
SBA secured by real estate (3)
40,861 — 3,117 — 43,978 
Total business loans secured by real estate2,198,192 53,073 43,551 — 2,294,816 
Commercial loans (4)
Commercial and industrial1,455,916 12,838 14,701 2,885 1,486,340 
Franchise non-real estate secured205,437 702 7,218 — 213,357 
SBA not secured by real estate7,891 — 195 — 8,086 
Total commercial loans1,669,244 13,540 22,114 2,885 1,707,783 
Retail loans
Single family residential (5)
186,739 — — — 186,739 
Consumer loans1,804 — — — 1,804 
Total retail loans188,543 — — — 188,543 
Loans held for investment before basis adjustment (6)
$11,841,344 $108,590 $103,364 $2,885 $12,056,183 
______________________________
(1) SBA loans that are collateralized by hotel/motel real property.
(2) Loans to businesses that are collateralized by real estate where the operating cash flow of the business is the primary source of repayment.
(3) SBA loans that are collateralized by real property other than hotel/motel real property.
(4) Loans to businesses where the operating cash flow of the business is the primary source of repayment.
(5) Single family residential includes home equity lines of credit, as well as second trust deeds.
(6) Excludes the basis adjustment of $16.4 million to the carrying amount of certain loans included in fair value hedging relationships.
23

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
GAAP to NON-GAAP RECONCILIATIONS
(Unaudited)
The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance. However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on 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.
For periods presented below, return on average assets excluding net loss from investment securities repositioning and FDIC special assessment is a non-GAAP financial measure derived from GAAP based amounts. We calculate this figure by excluding the net loss from investment securities repositioning during the fourth quarter of 2023, the FDIC special assessment, and the related tax impact from net income. Management believes that the exclusion of such nonrecurring items from this financial measure provides useful information to gain an understanding of the operating results of our core business and a better comparison of financial performance.
 Three Months EndedYear Ended
 December 31,September 30,December 31,December 31,December 31,
(Dollars in thousands)20242024202320242023
Net income (loss)$33,893 $35,979 $(135,376)$158,802 $30,852 
Less: net loss from investment securities repositioning— — (254,065)— (254,065)
Add: FDIC special assessment
(33)(68)2,080 261 2,080 
Less: tax adjustment (1)
(9)(19)72,387 75 72,387 
Adjusted net income for average assets
$33,869 $35,930 $48,382 $158,988 $214,610 
Average assets$18,155,738 $18,242,413 $19,624,945 $18,505,374 $20,787,793 
Return on average assets (annualized)
0.75 %0.79 %(2.76)%0.86 %0.15 %
Adjusted return on average assets (annualized)
0.75 %0.79 %0.99 %0.86 %1.03 %
______________________________
(1) Adjusted by statutory tax rate

24

For periods presented below, return on average tangible common equity is a non-GAAP financial measure derived from GAAP-based amounts. We calculate this figure by excluding amortization of intangible assets expense from net income and excluding the average intangible assets and average goodwill from the average stockholders' equity during the periods indicated. 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. The adjusted net income, adjusted return on average equity, and adjusted return on average tangible common equity further exclude the nonrecurring items to provide a better comparison to the financial results of prior periods.
 Three Months EndedYear Ended
 December 31,September 30,December 31,December 31,December 31,
(Dollars in thousands)20242024202320242023
Net income (loss)$33,893 $35,979 $(135,376)$158,802 $30,852 
Plus: amortization of intangible assets expense2,730 2,762 3,022 11,091 12,303 
Less: tax adjustment (1)
769 781 854 3,132 3,491 
Net income (loss) for average tangible common equity$35,854 $37,960 $(133,208)$166,761 $39,664 
Less: net loss from investment securities repositioning
— — (254,065)— (254,065)
Add: FDIC special assessment
(33)(68)2,080 261 2,080 
Less: tax adjustment (1)
(9)(19)72,387 75 72,387 
Adjusted net income for average tangible common equity
$35,830 $37,911 $50,550 $166,947 $223,422 
Average stockholders' equity$2,942,122 $2,929,160 $2,848,951 $2,918,903 $2,844,289 
Less: average intangible assets33,813 36,570 45,050 37,949 49,643 
Less: average goodwill901,312 901,312 901,312 901,312 901,312 
Average tangible common equity2,006,997 1,991,278 1,902,589 1,979,642 1,893,334 
Add: average after-tax realized loss from investment securities repositioning
— — (94,887)— (23,917)
Adjusted average tangible common equity$2,006,997 $1,991,278 $1,807,702 $1,979,642 $1,869,417 
Return on average equity (annualized)4.61 %4.91 %(19.01)%5.44 %1.08 %
Adjusted return on average equity (annualized)
4.60 %4.91 %7.03 %5.45 %7.61 %
Return on average tangible common equity (annualized)7.15 %7.63 %(28.01)%8.42 %2.09 %
Adjusted return on average tangible common equity (annualized)
7.14 %7.62 %11.19 %8.43 %11.95 %
______________________________
(1) Adjusted by statutory tax rate

25

The adjusted basic earnings per common share and adjusted diluted earnings per common share are non-GAAP financial measures derived from GAAP based amounts. We calculate the adjusted basic earnings per common share by dividing net income allocable to common shareholders, excluding the net loss from investment securities repositioning during the fourth quarter of 2023, the FDIC special assessment, and the related tax impact, by the weighted average number of common shares outstanding for the reporting period, excluding outstanding participating securities. The adjusted diluted earnings per common share is computed by dividing net income allocable to common shareholders, excluding the net loss from investment securities repositioning, FDIC special assessment, and the related tax impact, by the weighted average number of diluted common shares outstanding over the reporting period, adjusted to include the effect of potentially dilutive common shares based on adjusted net income, but excludes awards considered participating securities. The computation of diluted earnings per common share excludes the impact of the assumed exercise or issuance of securities that would have an anti-dilutive effect. 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 and a better comparison of financial performance.
Three Months EndedYear Ended
December 31,September 30,December 31,December 31,December 31,
(Dollars in thousands, except per share data)20242024202320242023
Basic
Net income (loss) $33,893 $35,979 $(135,376)$158,802 $30,852 
Less: dividends and undistributed earnings allocated to participating securities(619)(667)(560)(2,860)(2,061)
Net income (loss) allocated to common stockholders33,274 35,312 (135,936)155,942 28,791 
Less: net loss from investment securities repositioning— — (254,065)— (254,065)
Add: FDIC special assessment
(33)(68)2,080 261 2,080 
Less: tax adjustment (1)
(9)(19)72,387 75 72,387 
Adjusted net income allocated to common stockholders
$33,250 $35,263 $47,822 $156,128 $212,549 
Weighted average common shares outstanding94,686,916 94,650,096 94,233,813 94,579,358 94,113,132 
Basic earnings per common share$0.35 $0.37 $(1.44)$1.65 $0.31 
Adjusted basic earnings per common share
$0.35 $0.37 $0.51 $1.65 $2.26 
Diluted
Net income (loss) allocated to common stockholders$33,274 $35,312 $(135,936)$155,942 $28,791 
Less: net loss from investment securities repositioning— — (254,065)— (254,065)
Add: FDIC special assessment
(33)(68)2,080 261 2,080 
Less: tax adjustment (1)
(9)(19)72,387 75 72,387 
Adjusted net income allocated to common stockholders$33,250 $35,263 $47,822 $156,128 $212,549 
Weighted average common shares outstanding94,686,916 94,650,096 94,233,813 94,579,358 94,113,132 
Dilutive effect of share-based compensation114,856 125,831 — 103,528 123,743 
Weighted average diluted common shares94,801,772 94,775,927 94,233,813 94,682,886 94,236,875 
Dilutive effect of share-based compensation
— — 101,065 — — 
Adjusted weighted average diluted common shares
94,801,772 94,775,927 94,334,878 94,682,886 94,236,875 
Diluted earnings (loss) per common share$0.35 $0.37 $(1.44)$1.65 $0.31 
Adjusted diluted earnings per common share
$0.35 $0.37 $0.51 $1.65 $2.26 
______________________________
(1) Adjusted by statutory tax rate
26

Efficiency ratio is a non-GAAP financial measure derived from GAAP-based amounts. This figure represents the ratio of noninterest expense, less amortization of intangible assets and other real estate owned operations, where applicable, to the sum of net interest income before provision for credit losses and total noninterest income less (loss) gain from investment securities, (loss) gain from other real estate owned, and gain from debt extinguishment. The adjusted efficiency ratio further excludes the FDIC special assessment to provide a better comparison to the financial results of prior periods. 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.
Three Months EndedYear Ended
December 31,September 30,December 31,December 31,December 31,
(Dollars in thousands)20242024202320242023
Total noninterest expense$100,686 $101,645 $102,770 $402,531 $406,951 
Less: amortization of intangible assets2,730 2,762 3,022 11,091 12,303 
Less: other real estate owned operations, net(3)1 103 44 215 
Adjusted noninterest expense
97,959 98,882 99,645 391,396 394,433 
Less: FDIC special assessment
(33)(68)2,080 261 2,080 
Adjusted noninterest expense excluding FDIC special assessment
$97,992 $98,950 $97,565 $391,135 $392,353 
Net interest income before provision for credit losses$124,532 $130,898 $146,789 $536,951 $625,039 
Add: total noninterest income (loss)
19,975 18,867 (234,194)82,838 (173,918)
Less: net loss from sales of investment securities
— — (254,065)— (253,927)
Less: net (loss) gain from sales of other real estate owned
— — (24)(28)82 
Less: net gain from debt extinguishment
— 203 793 5,270 793 
Adjusted revenue
$144,507 $149,562 $165,891 $614,547 $704,173 
Efficiency ratio67.8 %66.1 %60.1 %63.7 %56.0 %
Adjusted efficiency ratio excluding FDIC special assessment
67.8 %66.2 %58.8 %63.6 %55.7 %
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Tangible book value per share and tangible common equity to tangible assets (the “tangible common equity ratio”) are non-GAAP financial measures derived from GAAP-based amounts. We calculate tangible book value per share by dividing tangible common equity by common shares outstanding, as compared to book value per share, which we calculate by dividing common stockholders' equity by shares outstanding. We calculate the tangible common equity ratio by excluding the balance of intangible assets from common stockholders' equity and dividing by tangible assets. We believe that this information is consistent with the treatment by bank regulatory agencies, which excludes intangible assets from the calculation of risk-based capital ratios. Accordingly, we believe that these non-GAAP financial measures provide information that is important to investors and that is useful in understanding our capital position and ratios.
 December 31,September 30,June 30,March 31,December 31,
(Dollars in thousands, except per share data)20242024202420242023
Total stockholders' equity$2,955,743 $2,943,937 $2,923,764 $2,902,801 $2,882,581 
Less: intangible assets933,506 936,236 938,998 941,761 944,597 
Tangible common equity$2,022,237 $2,007,701 $1,984,766 $1,961,040 $1,937,984 
Total assets$17,903,585 $17,909,643 $18,332,325 $18,813,181 $19,026,645 
Less: intangible assets933,506 936,236 938,998 941,761 944,597 
Tangible assets$16,970,079 $16,973,407 $17,393,327 $17,871,420 $18,082,048 
Tangible common equity ratio11.92 %11.83 %11.41 %10.97 %10.72 %
Common shares issued and outstanding96,441,66796,462,76796,434,04796,459,96695,860,092
Book value per share$30.65 $30.52 $30.32 $30.09 $30.07 
Less: intangible book value per share9.68 9.71 9.74 9.76 9.85 
Tangible book value per share$20.97 $20.81 $20.58 $20.33 $20.22 

Cost of non-maturity deposits is a non-GAAP financial measure derived from GAAP-based amounts. Cost of non-maturity deposits is calculated as the ratio of non-maturity deposit interest expense to average non-maturity deposits. We calculate non-maturity deposit interest expense by excluding interest expense for all certificates of deposit from total deposit expense, and we calculate average non-maturity deposits by excluding all certificates of deposit from total deposits. Management believes cost of non-maturity deposits is a useful measure to assess the Company's deposit base, including its potential volatility.
Three Months EndedYear Ended
December 31,September 30,December 31,December 31,December 31,
(Dollars in thousands)20242024202320242023
Total deposits interest expense$66,355 $67,898 $60,915 $257,988 $217,447 
Less: certificates of deposit interest expense22,287 23,202 16,758 85,679 48,237 
Less: brokered certificates of deposit interest expense3,869 5,484 10,759 22,528 61,858 
Non-maturity deposit expense$40,199 $39,212 $33,398 $149,781 $107,352 
Total average deposits$14,708,306 $14,655,478 $15,536,701 $14,839,411 $16,565,357 
Less: average retail certificates of deposit
1,916,788 1,944,685 1,604,507 1,855,343 1,385,531 
Less: average brokered certificates of deposit300,065 448,820 918,596 464,619 1,434,563 
Average non-maturity deposits$12,491,453 $12,261,973 $13,013,598 $12,519,449 $13,745,263 
Cost of non-maturity deposits1.28 %1.27 %1.02 %1.20 %0.78 %
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