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Regulatory Capital Requirements and Other Regulatory Matters
 12 Months Ended
Dec. 31, 2021
Regulatory Capital Requirements under Banking Regulations [Abstract]  
Regulatory Capital Requirements and Other Regulatory Matters Regulatory Capital Requirements and Other Regulatory Matters
 
The Corporation and the Bank are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Corporation’s and the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Corporation and the Bank must meet specific capital guidelines that involve quantitative measures of the Corporation’s and the Bank’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Corporation’s and the Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.
 
Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain capital in order to meet certain capital ratios to be considered adequately capitalized or well capitalized under the regulatory framework for prompt corrective action. As of the most recent formal notification from the Federal Reserve, the Bank was categorized as “well capitalized.” There are no conditions or events since that notification that management believes have changed the Bank’s categorization.

The Company and the Bank are required to meet risk-based capital standards under the revised capital framework of the Basel Committee on Banking Supervision, generally referred to as “Basel III”, administered by their respective regulatory authorities with a phase-in period beginning on January 1, 2015 and ending on January 1, 2019. The Basel III final capital framework requires all banking organizations to maintain a capital conservation buffer of 2.50% above the minimum risk-based capital requirements in order to avoid certain limitations on capital distributions, stock repurchases, and discretionary bonus payments to executive officers. The capital conservation buffer is exclusively comprised of Common Equity Tier capital, and it applies to each of the three risk-based capital ratios but not to the leverage ratio. At December 31, 2021, the Company and Bank are in compliance with the capital conservation buffer requirement and exceeded the minimum Common Equity Tier 1, Tier 1 and total capital ratio, 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.

In February 2019, the U.S. federal bank regulatory agencies approved a final rule modifying their regulatory capital rules and providing an option to phase-in over a three-year period the Day 1 adverse regulatory capital effects of the CECL accounting standard. Additionally, in March 2020, the U.S. Federal bank regulatory agencies issued an interim final rule that provides banking organizations an option to delay the estimated CECL impact on regulatory capital for an additional two years for a total transition period of up to five years to provide regulatory relief to banking organizations to better focus on supporting lending to creditworthy households and businesses in light of recent strains on the U.S. economy as a result of the COVID-19 pandemic. The capital relief in the interim is calibrated to approximate the difference in allowances under CECL relative to the incurred loss methodology for the first two years of the transition period using a 25% scaling factor. The cumulative difference at the end of the second year of the transition period is then phased in to regulatory capital at 25% per year over a three-year transition period. The final rule was adopted and became effective in September 2020. As a result, entities may gradually phase in the full effect of CECL on regulatory capital over a five-year transition period. The Company implemented the CECL model commencing January 1, 2020 and elected to phase in the full effect of CECL on regulatory capital over the five-year transition period.

For regulatory capital purposes, the subordinated debentures of the Corporation and the Bank are included in Tier 2 capital at December 31, 2021 and 2020. In 2021, the total capital ratios of the Corporation and the Bank were impacted by the redemptions of subordinated debentures during the second and third quarter and remained above the regulatory minimum required for capital adequacy purposes, inclusive of capital conservation buffer. See Note 13 - Subordinated Debentures for additional information.
As defined in applicable regulations and set forth in the table below, the Corporation and the Bank continue to exceed the regulatory capital minimum requirements, and the Bank continues to exceed the “well capitalized” standards and the required conservation buffer at the dates indicated:

 ActualMinimum Required for Capital Adequacy Purposes Inclusive of Capital Conservation BufferMinimum Required For Well Capitalized Requirement
(Dollars in thousands)AmountRatioAmountRatioAmountRatio
December 31, 2021    
Pacific Premier Bancorp, Inc. Consolidated
Tier 1 Leverage Ratio$2,016,538 10.08 %$799,963 4.00 %N/AN/A
Common Equity Tier 1 Capital Ratio2,016,538 12.11 %1,165,837 7.00 %N/AN/A
Tier 1 Capital Ratio2,016,538 12.11 %1,415,659 8.50 %N/AN/A
Total Capital Ratio2,434,680 14.62 %1,748,755 10.50 %N/AN/A
Pacific Premier Bank   
Tier 1 Leverage Ratio$2,324,626 11.62 %$800,009 4.00 %$1,000,012 5.00 %
Common Equity Tier 1 Capital Ratio2,324,626 13.96 %1,165,449 7.00 %1,082,202 6.50 %
Tier 1 Capital Ratio2,324,626 13.96 %1,415,188 8.50 %1,331,941 8.00 %
Total Capital Ratio2,448,201 14.70 %1,748,173 10.50 %1,664,927 10.00 %
December 31, 2020    
Pacific Premier Bancorp, Inc. Consolidated
Tier 1 Leverage Ratio$1,811,280 9.47 %$764,968 4.00 %N/AN/A
Common Equity Tier 1 Capital Ratio1,811,280 12.04 %1,053,063 7.00 %N/AN/A
Tier 1 Capital Ratio1,811,280 12.04 %1,278,719 8.50 %N/AN/A
Total Capital Ratio2,454,055 16.31 %1,579,594 10.50 %N/AN/A
Pacific Premier Bank   
Tier 1 Leverage Ratio$2,081,916 10.89 %$764,863 4.00 %$956,079 5.00 %
Common Equity Tier 1 Capital Ratio2,081,916 13.84 %1,053,177 7.00 %977,950 6.50 %
Tier 1 Capital Ratio2,081,916 13.84 %1,278,858 8.50 %1,203,631 8.00 %
Total Capital Ratio2,390,954 15.89 %1,579,766 10.50 %1,504,539 10.00 %