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

Exhibit 99.1

Pacific Premier Bancorp, Inc. Announces First Quarter 2024 Financial Results and a Quarterly Cash Dividend of $0.33 Per Share

First Quarter 2024 Summary
 
•Net income of $47.0 million, or $0.49 per diluted share
•Return on average assets of 0.99%, return on average equity of 6.50%, and return on average tangible common equity(1) of 10.05%
•Pre-provision net revenue (“PPNR”)(1) to average assets of 1.43%, annualized
•Net interest margin expanded 11 basis points to 3.39%
•Cost of deposits of 1.59%, and cost of non-maturity deposits(1) of 1.06%
•Non-maturity deposits(1) to total deposits of 84.42%
•Total delinquency of 0.09% of loans held for investment
•Nonperforming assets to total assets of 0.34%
•Tangible book value per share(1) increased $0.11 compared to the prior quarter to $20.33
•Common equity tier 1 capital ratio of 15.02%, and total risk-based capital ratio of 18.23%
•Tangible common equity ratio (“TCE”)(1) increased to 10.97%

Irvine, Calif., April 24, 2024 -- Pacific Premier Bancorp, Inc. (NASDAQ: PPBI) (the “Company” or “Pacific Premier”), the holding company of Pacific Premier Bank (the “Bank”), reported net income of $47.0 million, or $0.49 per diluted share, for the first quarter of 2024, compared with net loss of $135.4 million, or $1.44 per diluted share, for the fourth quarter of 2023, and net income of $62.6 million, or $0.66 per diluted share, for the first quarter of 2023.
    
For the first quarter of 2024, the Company’s return on average assets (“ROAA”) was 0.99%, return on average equity (“ROAE”) was 6.50%, and return on average tangible common equity (“ROATCE”)(1) was 10.05%, compared to (2.76)%, (19.01)%, and (28.01)%, respectively, for the fourth quarter of 2023, and 1.15%, 8.87%, and 13.89%, respectively, for the first quarter of 2023. Total assets were $18.81 billion at March 31, 2024, compared to $19.03 billion at December 31, 2023, and $21.36 billion at March 31, 2023.

Steven R. Gardner, Chairman, Chief Executive Officer, and President of the Company, commented, “Our team delivered solid first quarter financial performance with net income of $47.0 million, or $0.49 per share, reflecting a full quarter’s benefit from the securities portfolio repositioning as our net interest margin expanded 11 basis points to 3.39%. Our commitment to prudent and proactive risk, liquidity, and capital management in the current dynamic environment continues to drive strong capital levels that rank amongst the top of our peers, with our TCE(1) ratio increasing 25 basis points to 10.97%.

“On the business development front, our dedicated relationship managers, retail branch bankers, and treasury management teams continue to successfully collaborate to expand our client base and deepen existing client relationships. During the first quarter, total deposits increased by $192 million, driven by a $120 million increase in non-maturity deposits, enabling us to further reduce FHLB borrowings by $400 million. Some of the quarterly deposit inflows were seasonal in nature, which we expect to reverse as we move through the year.

“First quarter asset quality trends remained strong, although nonperforming loans increased to $63.8 million, primarily the result of a single, diversified, Pacific Northwest commercial banking relationship, wherein the borrower remains current on all payments. Our team is actively engaged with the client and continues to approach the relationship consistent with our longstanding proactive approach to credit risk management.

(1) Reconciliations of the non–U.S. generally accepted accounting principles (“GAAP”) measures are set forth at the end of this press release.
1

“With our strong capital levels combined with our significant loss absorbing capacity, we have strategically positioned the company to perform in a variety of economic and credit scenarios. There are a number of factors contributing to an uncertain outlook, including ongoing inflationary pressures, interest rate volatility, and domestic and international geopolitical risks. Our franchise has been built on a culture of risk management and a proactive approach to building sustainable franchise value. We will continue to manage the business proactively and prudently while leveraging the strength of our relationship banking teams to capitalize on compelling opportunities as they may arise. I would like to thank all Pacific Premier employees for their outstanding efforts during the quarter, as well as all of our stakeholders for continuing to support our organization.”

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FINANCIAL HIGHLIGHTS
Three Months Ended
 March 31,December 31,March 31,
(Dollars in thousands, except per share data)202420232023
Financial highlights (unaudited)
Net income (loss)$47,025 $(135,376)$62,562 
Net interest income145,127 146,789 168,610 
Diluted earnings (loss) per share0.49 (1.44)0.66 
Common equity dividend per share paid0.33 0.33 0.33 
ROAA
0.99 %(2.76)%1.15 %
ROAE
6.50 (19.01)8.87 
ROATCE (1)
10.05 (28.01)13.89 
Pre-provision net revenue (loss) to average assets (1)
1.43 (3.88)1.63 
Net interest margin3.39 3.28 3.44 
Cost of deposits1.59 1.56 0.94 
Cost of non-maturity deposits (1)
1.06 1.02 0.54 
Efficiency ratio (1)
60.2 60.1 51.7 
Noninterest expense as a percent of average assets2.16 2.09 1.87 
Total assets$18,813,181 $19,026,645 $21,361,564 
Total deposits15,187,828 14,995,626 17,207,810 
Non-maturity deposits (1) as a percent of total deposits
84.4 %84.7 %82.6 %
Noninterest-bearing deposits as a percent of total deposits32.9 32.9 36.1 
Loan-to-deposit ratio85.7 88.6 82.4 
Nonperforming assets as a percent of total assets0.34 0.13 0.14 
Delinquency as a percentage of loans held for investment0.09 0.08 0.15 
Allowance for credit losses to loans held for investment (2)
1.48 1.45 1.38 
Book value per share$30.09 $30.07 $29.58 
Tangible book value per share (1)
20.33 20.22 19.61 
Tangible common equity ratio (1)
10.97 %10.72 %9.20 %
Common equity tier 1 capital ratio15.02 14.32 13.54 
Total capital ratio18.23 17.29 16.33 
______________________________
(1) Reconciliations of the non-GAAP measures are set forth at the end of this press release.
(2) At March 31, 2024, 25% of loans held for investment include a fair value net discount of $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. At March 31, 2023, 26% of loans held for investment include a fair value net discount of $52.2 million, or 0.37% of loans held for investment.

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INCOME STATEMENT HIGHLIGHTS

Net Interest Income and Net Interest Margin
 
Net interest income totaled $145.1 million in the first quarter of 2024, a decrease of $1.7 million, or 1.1%, from the fourth quarter of 2023. The decrease in net interest income was primarily attributable to lower average interest-earning asset balances, a higher cost of funds, and one less day of interest, partially offset by higher yields on interest-earning assets, as well as lower average borrowings.

The net interest margin for the first quarter of 2024 increased 11 basis points to 3.39%, from 3.28% in the prior quarter. The increase was primarily due to higher yields on investment securities as a result of a full quarter's benefit from the securities repositioning to higher-yielding available-for-sale (“AFS”) Treasury securities, partially offset by a higher cost of funds.

Net interest income for the first quarter of 2024 decreased $23.5 million, or 13.9%, compared to the first quarter of 2023. The decrease was attributable to a higher cost of funds and lower average interest-earning asset balances, partially offset by lower average interest-bearing liabilities and higher yields on average interest-earning assets, all the result of the higher interest rate environment and the Company's balance sheet management strategies to prioritize capital accumulation.

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCES AND YIELD DATA
(Unaudited)
 Three Months Ended
 March 31, 2024December 31, 2023March 31, 2023
(Dollars in thousands)Average BalanceInterest Income/ExpenseAverage
 Yield/
 Cost		Average BalanceInterest Income/ExpenseAverage
 Yield/
 Cost		Average BalanceInterest Income/ExpenseAverage Yield/ Cost
Assets
Cash and cash equivalents$1,140,909 $13,638 4.81 %$1,281,793 $15,744 4.87 %$1,335,611 $13,594 4.13 %
Investment securities2,948,170 26,818 3.64 3,203,608 24,675 3.08 4,165,681 26,791 2.57 
Loans receivable, net (1) (2)
13,149,038 172,975 5.29 13,257,767 176,773 5.29 14,394,775 180,958 5.10 
Total interest-earning assets$17,238,117 $213,431 4.98 $17,743,168 $217,192 4.86 $19,896,067 $221,343 4.51 
Liabilities
Interest-bearing deposits$10,058,808 $59,506 2.38 %$10,395,116 $60,915 2.32 %$11,104,624 $40,234 1.47 %
Borrowings850,811 8,798 4.15 942,689 9,488 4.01 1,319,114 12,499 3.83 
Total interest-bearing liabilities$10,909,619 $68,304 2.52 $11,337,805 $70,403 2.46 $12,423,738 $52,733 1.72 
Noninterest-bearing deposits$4,996,939 $5,141,585 $6,219,818 
Net interest income$145,127 $146,789 $168,610 
Net interest margin (3)
  3.39 %3.28 %3.44 %
Cost of deposits (4)
1.59 1.56 0.94 
Cost of funds (5)
1.73 1.69 1.15 
Cost of non-maturity deposits (6)
1.06 1.02 0.54 
Ratio of interest-earning assets to interest-bearing liabilities158.01 156.50 160.15 
_______________________________________
(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 $2.1 million, $2.6 million, and $2.5 million for the three months ended March 31, 2024, December 31, 2023, and March 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 first quarter of 2024, the Company recorded a $3.9 million provision expense, compared to $1.7 million for the fourth quarter of 2023, and $3.0 million for the first quarter of 2023. The provision for credit losses was largely attributable to increases associated with economic forecasts, partially offset by changes to the overall size and composition of the loan portfolio.
Three Months Ended
March 31,December 31,March 31,
(Dollars in thousands)202420232023
Provision for credit losses
Provision for loan losses$6,288 $8,275 $3,021 
Provision for unfunded commitments(2,425)(6,577)(189)
Provision for held-to-maturity securities(11)(2)184 
Total provision for credit losses$3,852 $1,696 $3,016 

Noninterest Income
 
Noninterest income for the first quarter of 2024 was $25.8 million, an increase of $260.0 million from the fourth quarter of 2023. The increase was related to the investment securities portfolio repositioning which resulted in a loss of $254.1 million during the fourth quarter of 2023. Excluding the prior quarter's loss, noninterest income increased $5.9 million, primarily due to a $5.1 million gain on debt extinguishment resulting from an early redemption of a $200.0 million Federal Home Loan Bank of San Francisco (“FHLB”) term advance as well as a $1.3 million increase in trust custodial account fees driven by annual tax fees earned during the current quarter.

Noninterest income for the first quarter of 2024 increased $4.6 million compared to the first quarter of 2023. The increase was primarily due to a $5.1 million gain on debt extinguishment resulting from an early redemption of a $200.0 million FHLB term advance during the current quarter.
Three Months Ended
March 31,December 31,March 31,
(Dollars in thousands)202420232023
Noninterest income
Loan servicing income$529 $359 $573 
Service charges on deposit accounts2,688 2,648 2,629 
Other service fee income336 322 296 
Debit card interchange fee income765 844 803 
Earnings on bank owned life insurance4,159 3,678 3,374 
Net (loss) gain from sales of loans
— (4)29 
Net (loss) gain from sales of investment securities— (254,065)138 
Trust custodial account fees
10,642 9,388 11,025 
Escrow and exchange fees696 1,074 1,058 
Other income5,959 1,562 1,261 
Total noninterest income (loss)$25,774 $(234,194)$21,186 

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Noninterest Expense
 
Noninterest expense totaled $102.6 million for the first quarter of 2024, a decrease of $137,000 compared to the fourth quarter of 2023. The results were impacted by a $523,000 FDIC special assessment in the first quarter of 2024 and a $2.1 million FDIC special assessment during the fourth quarter of 2023. Excluding the special assessments, noninterest expense increased $1.4 million, primarily due to a $2.2 million increase in compensation and benefits related to higher payroll taxes and the annual equity-based compensation awards, as well as a $1.5 million increase in deposit expense due to higher deposit earnings credit rates, partially offset by a $1.1 million decrease in other expense.

Noninterest expense for the first quarter of 2024 increased by $1.3 million compared to the first quarter of 2023. The increase was primarily due to a $4.2 million increase in deposit expense, partially offset by a $1.4 million decrease in legal and professional services and a $935,000 decrease in premises and occupancy.
Three Months Ended
March 31,December 31,March 31,
(Dollars in thousands)202420232023
Noninterest expense
Compensation and benefits$54,130 $51,907 $54,293 
Premises and occupancy10,807 11,183 11,742 
Data processing7,511 7,409 7,265 
Other real estate owned operations, net46 103 108 
FDIC insurance premiums2,629 4,267 2,425 
Legal and professional services4,143 4,663 5,501 
Marketing expense1,558 1,728 1,838 
Office expense1,093 1,367 1,232 
Loan expense770 437 646 
Deposit expense12,665 11,152 8,436 
Amortization of intangible assets2,836 3,022 3,171 
Other expense4,445 5,532 4,695 
Total noninterest expense$102,633 $102,770 $101,352 


Income Tax

For the first quarter of 2024, income tax expense totaled $17.4 million, resulting in an effective tax rate of 27.0%, compared with income tax benefit of $56.5 million and an effective tax rate of 29.4% for the fourth quarter of 2023, and income tax expense of $22.9 million and an effective tax rate of 26.8% for the first quarter of 2023. The income tax benefit in the prior quarter was primarily attributable to the pretax loss from sales of AFS securities recorded for the fourth quarter of 2023, driven by the Company's balance sheet repositioning.

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BALANCE SHEET HIGHLIGHTS

Loans

Loans held for investment totaled $13.01 billion at March 31, 2024, a decrease of $276.9 million, or 2.1%, from December 31, 2023, and a decrease of $1.16 billion, or 8.2%, from March 31, 2023. The decrease from December 31, 2023 was primarily due to lower loan production and fundings, as well as a decrease in credit line draws, partially offset by slower loan prepayments and maturities.

During the first quarter of 2024, new loan commitments totaled $45.6 million, and new loan fundings totaled $14.0 million, compared with $128.1 million in loan commitments and $103.7 million in new loan fundings for the fourth quarter of 2023, and $116.8 million in loan commitments and $66.9 million in new loan fundings for the first quarter of 2023. During the first quarter of 2024, new origination activity remained muted given the uncertain economic and interest rate outlook as well as softer borrower demand.
 
At March 31, 2024, the total loan-to-deposit ratio was 85.7%, compared to 88.6% and 82.4% at December 31, 2023 and March 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
March 31,December 31,March 31,
(Dollars in thousands)202420232023
Beginning gross loan balance before basis adjustment$13,318,571 $13,319,591 $14,740,867 
New commitments45,563 128,102 116,835 
Unfunded new commitments(31,531)(24,429)(49,891)
Net new fundings14,032 103,673 66,944 
Amortization/maturities/payoffs(358,863)(422,607)(519,986)
Net draws on existing lines of credit109,860 354,711 (53,436)
Loan sales(32,676)(32,464)(803)
Charge-offs(6,529)(4,138)(3,664)
Transferred to other real estate owned— (195)(6,886)
Net decrease
(274,176)(1,020)(517,831)
Ending gross loan balance before basis adjustment$13,044,395 $13,318,571 $14,223,036 
Basis adjustment associated with fair value hedge (1)
(32,324)(29,551)(50,005)
Ending gross loan balance $13,012,071 $13,289,020 $14,173,031 
______________________________
(1) Represents the basis adjustment associated with the application of hedge accounting on certain loans.


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The following table presents the composition of the loans held for investment as of the dates indicated:

March 31,December 31,March 31,
(Dollars in thousands)202420232023
Investor loans secured by real estate
Commercial real estate (“CRE”) non-owner-occupied$2,309,252 $2,421,772 $2,590,824 
Multifamily5,558,966 5,645,310 5,955,239 
Construction and land486,734 472,544 420,079 
SBA secured by real estate (1)
35,206 36,400 40,669 
Total investor loans secured by real estate8,390,158 8,576,026 9,006,811 
Business loans secured by real estate (2)
CRE owner-occupied2,149,362 2,191,334 2,342,175 
Franchise real estate secured294,938 304,514 371,902 
SBA secured by real estate (3)
48,426 50,741 60,527 
Total business loans secured by real estate2,492,726 2,546,589 2,774,604 
Commercial loans (4)
Commercial and industrial (“C&I”)
1,774,487 1,790,608 1,967,128 
Franchise non-real estate secured301,895 319,721 388,722 
SBA non-real estate secured10,946 10,926 10,437 
Total commercial loans2,087,328 2,121,255 2,366,287 
Retail loans
Single family residential (5)
72,353 72,752 70,913 
Consumer1,830 1,949 3,174 
Total retail loans74,183 74,701 74,087 
Loans held for investment before basis adjustment (6)
13,044,395 13,318,571 14,221,789 
Basis adjustment associated with fair value hedge (7)
(32,324)(29,551)(50,005)
Loans held for investment13,012,071 13,289,020 14,171,784 
Allowance for credit losses for loans held for investment(192,340)(192,471)(195,388)
Loans held for investment, net$12,819,731 $13,096,549 $13,976,396 
Total unfunded loan commitments$1,459,515 $1,703,470 $2,413,169 
Loans held for sale, at lower of cost or fair value$— $— $1,247 
______________________________
(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 net deferred origination costs (fees) of $797,000, $(74,000), and $(745,000), and unaccreted fair value net purchase discounts of $41.2 million, $43.3 million, and $52.2 million as of March 31, 2024, December 31, 2023, and March 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, at March 31, 2024 was 4.91%, compared to 4.87% at December 31, 2023, and 4.68% at March 31, 2023. The quarter-over-quarter and year-over-year increases reflect higher rates on new originations and the repricing of loans as a result of the increases in benchmark interest rates.

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The following table presents the composition of loan commitments originated during the quarters indicated:

Three Months Ended
March 31,December 31,March 31,
(Dollars in thousands)202420232023
Investor loans secured by real estate
CRE non-owner-occupied$850 $1,450 $1,200 
Multifamily480 94,462 4,464 
Total investor loans secured by real estate1,330 95,912 5,664 
Business loans secured by real estate (1)
CRE owner-occupied6,745 3,870 6,562 
Franchise real estate secured— — 3,217 
SBA secured by real estate (2)
— — 497 
Total business loans secured by real estate6,745 3,870 10,276 
Commercial loans (3)
Commercial and industrial32,477 24,766 93,150 
Franchise non-real estate secured— — 1,666 
SBA non-real estate secured— — 720 
Total commercial loans32,477 24,766 95,536 
Retail loans
Single family residential (4)
4,936 3,554 5,359 
Consumer75 — — 
Total retail loans5,011 3,554 5,359 
Total loan commitments$45,563 $128,102 $116,835 
______________________________
(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 increased to 8.62% in the first quarter of 2024, compared to 6.34% in the fourth quarter of 2023, and 7.43% in the first quarter of 2023.

Asset Quality and Allowance for Credit Losses
 
At March 31, 2024, our allowance for credit losses (“ACL”) on loans held for investment was $192.3 million, a decrease of $131,000 from December 31, 2023, and a decrease of $3.0 million from March 31, 2023. The decrease in the ACL from December 31, 2023 and March 31, 2023 reflects the relative changes in size and composition in our loans held for investment, partially offset by changes in economic forecasts.

During the first quarter of 2024, the Company incurred $6.4 million of net charge-offs, primarily related to the sale of special mention and substandard CRE and franchise loans during the quarter, compared to $3.9 million during the fourth quarter of 2023, and $3.3 million during the first quarter of 2023.

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:

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Three Months Ended March 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$31,030 $(927)$— $678 $30,781 
Multifamily56,312 — 5 2,094 58,411 
Construction and land9,314 — — (1,143)8,171 
SBA secured by real estate (1)
2,182 (253)— 255 2,184 
Business loans secured by real estate (2)
CRE owner-occupied28,787 (4,452)63 4,362 28,760 
Franchise real estate secured7,499 (212)— (29)7,258 
SBA secured by real estate (3)
4,427 — 1 (140)4,288 
Commercial loans (4)
Commercial and industrial36,692 (585)39 961 37,107 
Franchise non-real estate secured15,131 (100)— (711)14,320 
SBA non-real estate secured458 — 2 35 495 
Retail loans
Single family residential (5)
505 — — (63)442 
Consumer loans134 — — (11)123 
Totals$192,471 $(6,529)$110 $6,288 $192,340 
______________________________
(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 March 31, 2024 increased to 1.48%, compared to 1.45% at December 31, 2023, and 1.38% at March 31, 2023. The fair value net discount on loans acquired through acquisitions was $41.2 million, or 0.32% of total loans held for investment, as of March 31, 2024, compared to $43.3 million, or 0.33% of total loans held for investment, as of December 31, 2023, and $52.2 million, or 0.37% of total loans held for investment, as of March 31, 2023.

Nonperforming assets totaled $64.1 million, or 0.34% of total assets, at March 31, 2024, compared with $25.1 million, or 0.13% of total assets, at December 31, 2023, and $30.4 million, or 0.14% of total assets, at March 31, 2023. The increase in nonperforming assets at March 31, 2024, was primarily the result of loans to one borrower relationship totaling $37.6 million, all of which were current as of March 31, 2024. Loan delinquencies were $12.2 million, or 0.09% of loans held for investment, at March 31, 2024, compared to $10.1 million, or 0.08% of loans held for investment, at December 31, 2023, and $20.8 million, or 0.15% of loans held for investment, at March 31, 2023.

Classified loans totaled $204.7 million, or 1.57% of loans held for investment, at March 31, 2024, compared with $142.0 million, or 1.07% of loans held for investment, at December 31, 2023, and $161.1 million, or 1.14% of loans held for investment, at March 31, 2023. The increase in classified loans included the $37.6 million in loans related to one borrower relationship that were placed on nonaccrual during the first quarter of 2024 and remained current as of March 31, 2024.


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The following table presents the asset quality metrics of the loan portfolio as of the dates indicated.

 March 31,December 31,March 31,
(Dollars in thousands)202420232023
Asset quality
Nonperforming loans$63,806 $24,817 $24,872 
Other real estate owned248 248 5,499 
Nonperforming assets$64,054 $25,065 $30,371 
Total classified assets (1)
$204,937 $142,210 $166,576 
Allowance for credit losses192,340 192,471 195,388 
Allowance for credit losses as a percent of total nonperforming loans301 %776 %786 %
Nonperforming loans as a percent of loans held for investment0.49 0.19 0.18 
Nonperforming assets as a percent of total assets0.34 0.13 0.14 
Classified loans to total loans held for investment1.57 1.07 1.14 
Classified assets to total assets1.09 0.75 0.78 
Net loan charge-offs for the quarter ended$6,419 $3,902 $3,284 
Net loan charge-offs for the quarter to average total loans0.05 %0.03 %0.02 %
Allowance for credit losses to loans held for investment (2)
1.48 1.45 1.38 
Delinquent loans (3)
  
30 - 59 days$1,983 $2,484 $761 
60 - 89 days974 1,294 1,198 
90+ days9,221 6,276 18,884 
Total delinquency$12,178 $10,054 $20,843 
Delinquency as a percentage of loans held for investment0.09 %0.08 %0.15 %
______________________________
(1) Includes substandard and doubtful loans, and other real estate owned.
(2) At March 31, 2024, 25% of loans held for investment include a fair value net discount of $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. At March 31, 2023, 26% of loans held for investment include a fair value net discount of $52.2 million, or 0.37% 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 March 31, 2024, AFS and held-to-maturity (“HTM”) investment securities were $1.15 billion and $1.72 billion, respectively, compared to $1.14 billion and $1.73 billion, respectively, at December 31, 2023, and $2.11 billion and $1.75 billion, respectively, at March 31, 2023.

In total, investment securities were $2.87 billion at March 31, 2024, an increase of $4.9 million from December 31, 2023, and a decrease of $987.4 million from March 31, 2023. The increase in the first quarter of 2024 compared to the prior quarter was primarily the result of $170.2 million in purchases and a decrease of $1.9 million in AFS investment securities mark-to-market unrealized loss, partially offset by $167.3 million in principal payments, amortization and accretion, and redemptions.

The decrease in investment securities from March 31, 2023 was primarily the result of $1.52 billion in sales of AFS investment securities and $410.9 million in principal payments, discounts from the AFS securities transferred to HTM, partially offset by $722.7 million in purchases of AFS and HTM investment securities and a decrease of $219.0 million in AFS securities mark-to-market unrealized loss.

11

Deposits

At March 31, 2024, total deposits were $15.19 billion, an increase of $192.2 million, or 1.3%, from December 31, 2023, and a decrease of $2.02 billion, or 11.7%, from March 31, 2023. The increase from the prior quarter was largely driven by increases of $169.2 million in money market and savings, $110.3 million in retail certificates of deposit, and $64.8 million in noninterest-bearing checking, partially offset by reductions of $114.0 million in interest-bearing checking and $38.1 million in brokered certificates of deposit. The decrease from March 31, 2023 was attributable to the decreases of $1.21 billion in noninterest-bearing checking and $1.17 billion in brokered certificates of deposit.

At March 31, 2024, non-maturity deposits(1) totaled $12.82 billion, or 84.4% of total deposits, an increase of $120.0 million, or 0.9%, from December 31, 2023, and a decrease of $1.39 billion, or 9.8%, from March 31, 2023. The increase from prior quarter was largely driven by seasonal deposit growth within our HOA business. The decrease from the first quarter of 2023 was attributable to the continued effect of clients prepaying or paying down loans and redeploying funds into higher yielding alternatives.

At March 31, 2024, maturity deposits totaled $2.37 billion, an increase of $72.2 million, or 3.1%, from December 31, 2023, and a decrease of $631.1 million, or 21.1%, from March 31, 2023. The increase in the first quarter of 2024 compared to the prior quarter was primarily driven by an increase of $110.3 million in retail certificates of deposit, partially offset by the reduction of $38.1 million in brokered certificates of deposit. The decrease from March 31, 2023 was primarily driven by decreases in brokered certificates of deposit.

The weighted average cost of total deposits for the first quarter of 2024 was 1.59%, compared to 1.56% for the fourth quarter of 2023, and 0.94% for the first quarter of 2023. The increases in the weighted average cost of deposits for the first quarter of 2024, compared to the fourth quarter of 2023 and the first quarter of 2023, were principally driven by higher pricing across deposit categories. The weighted average cost of non-maturity deposits(1) for the first quarter of 2024 was 1.06%, compared to 1.02% for the fourth quarter of 2023, and 0.54% for the first quarter of 2023.

At March 31, 2024, the end-of-period weighted average rate of total deposits was 1.66%, compared to 1.55% at December 31, 2023, and 1.15% at March 31, 2023. At March 31, 2024, the end-of-period weighted average rate of non-maturity deposits was 1.12%, compared to 1.04% at December 31, 2023, and 0.61% at March 31, 2023.

At March 31, 2024, the Company’s FDIC-insured deposits as a percentage of total deposits was 60%. Insured and collateralized deposits comprised 66% of total deposits at March 31, 2024, which was the same level at December 31, 2023.














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

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

 March 31,December 31,March 31,
(Dollars in thousands)202420232023
Deposit accounts
Noninterest-bearing checking$4,997,636 $4,932,817 $6,209,104 
Interest-bearing:
Checking2,785,626 2,899,621 2,871,812 
Money market/savings5,037,636 4,868,442 5,128,857 
Total non-maturity deposits (1)
12,820,898 12,700,880 14,209,773 
Retail certificates of deposit1,794,813 1,684,560 1,257,146 
Wholesale/brokered certificates of deposit572,117 610,186 1,740,891 
Total maturity deposits2,366,930 2,294,746 2,998,037 
Total deposits$15,187,828 $14,995,626 $17,207,810 
Cost of deposits1.59 %1.56 %0.94 %
Cost of non-maturity deposits (1)
1.06 1.02 0.54 
Noninterest-bearing deposits as a percent of total deposits32.9 32.9 36.1 
Non-maturity deposits (1) as a percent of total deposits
84.4 84.7 82.6 
______________________________
(1) Reconciliations of the non-GAAP measures are set forth at the end of this press release.


Borrowings

At March 31, 2024, total borrowings amounted to $532.0 million, a decrease of $399.8 million from December 31, 2023, and a decrease of $599.4 million from March 31, 2023. Total borrowings at March 31, 2024 were comprised of $200.0 million of FHLB term advances and $332.0 million of subordinated debt. The decrease in borrowings at March 31, 2024 as compared to December 31, 2023 was due to a decrease of $400.0 million in FHLB term advances. The decrease in borrowings at March 31, 2024 as compared to March 31, 2023 was due to a decrease of $600.0 million in FHLB term advances.

As of March 31, 2024, our unused borrowing capacity was $8.53 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 first quarter of 2024.

Capital Ratios

At March 31, 2024, our common stockholders' equity was $2.90 billion, or 15.43% of total assets, compared with $2.88 billion, or 15.15%, at December 31, 2023, and $2.83 billion, or 13.25%, at March 31, 2023, with a book value per share of $30.09, compared with $30.07 at December 31, 2023, and $29.58 at March 31, 2023. At March 31, 2024, the ratio of tangible common equity to tangible assets(1) was 10.97%, compared with 10.72% at December 31, 2023, and 9.20% at March 31, 2023, and tangible book value per share(1) was $20.33, compared with $20.22 at December 31, 2023, and $19.61 at March 31, 2023.





______________________________
(1) Reconciliations of the non-GAAP measures are set forth at the end of this press release.
13

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 March 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.

March 31,December 31,March 31,
Capital ratios202420232023
Pacific Premier Bancorp, Inc. Consolidated   
Tier 1 leverage ratio11.48 %11.03 %10.41 %
Common equity tier 1 capital ratio15.02 14.32 13.54 
Tier 1 capital ratio15.02 14.32 13.54 
Total capital ratio18.23 17.29 16.33 
Tangible common equity ratio (1)
10.97 10.72 9.20 
Pacific Premier Bank
Tier 1 leverage ratio12.97 %12.43 %11.93 %
Common equity tier 1 capital ratio16.96 16.13 15.52 
Tier 1 capital ratio16.96 16.13 15.52 
Total capital ratio18.21 17.23 16.55 
Share data   
Book value per share$30.09 $30.07 $29.58 
Tangible book value per share (1)
20.33 20.22 19.61 
Common equity dividends declared per share0.33 0.33 0.33 
Closing stock price (2)
24.00 29.11 24.02 
Shares issued and outstanding96,459,966 95,860,092 95,714,777 
Market capitalization (2)(3)
$2,315,039 $2,790,487 $2,299,069 
______________________________
(1) Reconciliations of the non-GAAP measures are 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 April 22, 2024, the Company's Board of Directors declared a $0.33 per share dividend, payable on May 13, 2024 to stockholders of record as of May 6, 2024. 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 first quarter of 2024, the Company did not repurchase any shares of common stock.



14

Conference Call and Webcast

The Company will host a conference call at 9:00 a.m. PT / 12:00 p.m. ET on April 24, 2024 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 to the Pacific Premier Bancorp, Inc. call. Additionally, a telephone replay will be made available through May 1, 2024, at (877) 344-7529, replay code 4066481.

About Pacific Premier Bancorp, Inc.

Pacific Premier Bancorp, Inc. (Nasdaq: PPBI) is the parent company of Pacific Premier Bank, a California-based 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 $19 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 $17 billion of assets under custody and over 33,000 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 economy in general and the strength of the local economies in which we conduct operations; adverse developments in the banking industry highlighted by high-profile bank failures 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
15

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 the 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 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, Israel and Hamas and overall tension 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; 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
16

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
 March 31,December 31,September 30,June 30,March 31,
(Dollars in thousands)20242023202320232023
ASSETS
Cash and cash equivalents$1,028,818 $936,473 $1,400,276 $1,463,677 $1,424,896 
Interest-bearing time deposits with financial institutions995 995 1,242 1,487 1,734 
Investment securities held-to-maturity, at amortized cost, net of allowance for credit losses 1,720,481 1,729,541 1,737,866 1,737,604 1,749,030 
Investment securities available-for-sale, at fair value1,154,021 1,140,071 1,914,599 2,011,791 2,112,852 
FHLB, FRB, and other stock97,063 99,225 105,505 105,369 105,479 
Loans held for sale, at lower of amortized cost or fair value— — 641 2,184 1,247 
Loans held for investment13,012,071 13,289,020 13,270,120 13,610,282 14,171,784 
Allowance for credit losses(192,340)(192,471)(188,098)(192,333)(195,388)
Loans held for investment, net12,819,731 13,096,549 13,082,022 13,417,949 13,976,396 
Accrued interest receivable67,642 68,516 68,131 70,093 69,660 
Other real estate owned248 248 450 270 5,499 
Premises and equipment, net54,789 56,676 59,396 61,527 63,450 
Deferred income taxes, net111,390 113,580 192,208 184,857 177,778 
Bank owned life insurance474,404 471,178 468,191 465,288 462,732 
Intangible assets40,449 43,285 46,307 49,362 52,417 
Goodwill901,312 901,312 901,312 901,312 901,312 
Other assets341,838 368,996 297,574 275,113 257,082 
Total assets$18,813,181 $19,026,645 $20,275,720 $20,747,883 $21,361,564 
LIABILITIES  
Deposit accounts:  
Noninterest-bearing checking$4,997,636 $4,932,817 $5,782,305 $5,895,975 $6,209,104 
Interest-bearing:
Checking2,785,626 2,899,621 2,598,449 2,759,855 2,871,812 
Money market/savings5,037,636 4,868,442 4,873,582 4,801,288 5,128,857 
Retail certificates of deposit1,794,813 1,684,560 1,525,919 1,366,071 1,257,146 
Wholesale/brokered certificates of deposit572,117 610,186 1,227,192 1,716,686 1,740,891 
Total interest-bearing10,190,192 10,062,809 10,225,142 10,643,900 10,998,706 
Total deposits15,187,828 14,995,626 16,007,447 16,539,875 17,207,810 
FHLB advances and other borrowings200,000 600,000 800,000 800,000 800,000 
Subordinated debentures332,001 331,842 331,682 331,523 331,364 
Accrued expenses and other liabilities190,551 216,596 281,057 227,351 191,229 
Total liabilities15,910,380 16,144,064 17,420,186 17,898,749 18,530,403 
STOCKHOLDERS’ EQUITY     
Common stock941 938 937 937 937 
Additional paid-in capital2,378,171 2,377,131 2,371,941 2,366,639 2,361,830 
Retained earnings619,405 604,137 771,285 757,025 731,123 
Accumulated other comprehensive loss(95,716)(99,625)(288,629)(275,467)(262,729)
Total stockholders' equity2,902,801 2,882,581 2,855,534 2,849,134 2,831,161 
Total liabilities and stockholders' equity$18,813,181 $19,026,645 $20,275,720 $20,747,883 $21,361,564 








17

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 Three Months Ended
 March 31,December 31,March 31,
(Dollars in thousands, except per share data)202420232023
INTEREST INCOME   
Loans$172,975 $176,773 $180,958 
Investment securities and other interest-earning assets40,456 40,419 40,385 
Total interest income213,431 217,192 221,343 
INTEREST EXPENSE
Deposits59,506 60,915 40,234 
FHLB advances and other borrowings4,237 4,927 7,938 
Subordinated debentures4,561 4,561 4,561 
Total interest expense68,304 70,403 52,733 
Net interest income before provision for credit losses145,127 146,789 168,610 
Provision for credit losses3,852 1,696 3,016 
Net interest income after provision for credit losses141,275 145,093 165,594 
NONINTEREST INCOME
Loan servicing income529 359 573 
Service charges on deposit accounts2,688 2,648 2,629 
Other service fee income336 322 296 
Debit card interchange fee income765 844 803 
Earnings on bank owned life insurance4,159 3,678 3,374 
Net (loss) gain from sales of loans
— (4)29 
Net (loss) gain from sales of investment securities— (254,065)138 
Trust custodial account fees
10,642 9,388 11,025 
Escrow and exchange fees696 1,074 1,058 
Other income5,959 1,562 1,261 
Total noninterest income (loss)25,774 (234,194)21,186 
NONINTEREST EXPENSE
Compensation and benefits54,130 51,907 54,293 
Premises and occupancy10,807 11,183 11,742 
Data processing7,511 7,409 7,265 
Other real estate owned operations, net46 103 108 
FDIC insurance premiums2,629 4,267 2,425 
Legal and professional services4,143 4,663 5,501 
Marketing expense1,558 1,728 1,838 
Office expense1,093 1,367 1,232 
Loan expense770 437 646 
Deposit expense12,665 11,152 8,436 
Amortization of intangible assets2,836 3,022 3,171 
Other expense4,445 5,532 4,695 
Total noninterest expense102,633 102,770 101,352 
Net income (loss) before income taxes64,416 (191,871)85,428 
Income tax expense (benefit)17,391 (56,495)22,866 
Net income (loss)$47,025 $(135,376)$62,562 
EARNINGS (LOSS) PER SHARE
Basic$0.49 $(1.44)$0.66 
Diluted$0.49 $(1.44)$0.66 
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic94,350,259 94,233,813 93,857,812 
Diluted94,477,355 94,334,878 94,182,522 
18

SELECTED FINANCIAL DATA

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCES AND YIELD DATA
(Unaudited)
 
 Three Months Ended
 March 31, 2024December 31, 2023March 31, 2023
(Dollars in thousands)Average BalanceInterest Income/ExpenseAverage Yield/CostAverage BalanceInterest Income/ExpenseAverage Yield/CostAverage BalanceInterest Income/ExpenseAverage Yield/Cost
Assets
Interest-earning assets:         
Cash and cash equivalents$1,140,909 $13,638 4.81 %$1,281,793 $15,744 4.87 %$1,335,611 $13,594 4.13 %
Investment securities2,948,170 26,818 3.64 3,203,608 24,675 3.08 4,165,681 26,791 2.57 
Loans receivable, net (1)(2)
13,149,038 172,975 5.29 13,257,767 176,773 5.29 14,394,775 180,958 5.10 
Total interest-earning assets17,238,117 213,431 4.98 17,743,168 217,192 4.86 19,896,067 221,343 4.51 
Noninterest-earning assets1,796,279 1,881,777 1,788,806 
Total assets$19,034,396 $19,624,945 $21,684,873 
Liabilities and equity
Interest-bearing deposits:
Interest checking$2,838,332 $9,903 1.40 %$3,037,642 $11,170 1.46 %$3,008,712 $5,842 0.79 %
Money market4,636,141 23,632 2.05 4,525,403 22,038 1.93 4,992,084 13,053 1.06 
Savings287,735 227 0.32 308,968 190 0.24 453,079 508 0.45 
Retail certificates of deposit1,727,728 19,075 4.44 1,604,507 16,758 4.14 1,206,966 7,775 2.61 
Wholesale/brokered certificates of deposit568,872 6,669 4.72 918,596 10,759 4.65 1,443,783 13,056 3.67 
Total interest-bearing deposits10,058,808 59,506 2.38 10,395,116 60,915 2.32 11,104,624 40,234 1.47 
FHLB advances and other borrowings518,879 4,237 3.28 610,913 4,927 3.20 987,817 7,938 3.26 
Subordinated debentures331,932 4,561 5.50 331,776 4,561 5.50 331,297 4,561 5.51 
Total borrowings850,811 8,798 4.15 942,689 9,488 4.01 1,319,114 12,499 3.83 
Total interest-bearing liabilities10,909,619 68,304 2.52 11,337,805 70,403 2.46 12,423,738 52,733 1.72 
Noninterest-bearing deposits4,996,939 5,141,585 6,219,818 
Other liabilities231,889 296,604 218,925 
Total liabilities16,138,447 16,775,994 18,862,481 
Stockholders' equity2,895,949 2,848,951 2,822,392 
Total liabilities and equity$19,034,396 $19,624,945 $21,684,873 
Net interest income$145,127 $146,789 $168,610 
Net interest margin (3)
3.39 %3.28 %3.44 %
Cost of deposits (4)
1.59 1.56 0.94 
Cost of funds (5)
1.73 1.69 1.15 
Cost of non-maturity deposits (6)
1.06 1.02 0.54 
Ratio of interest-earning assets to interest-bearing liabilities158.01 156.50 160.15 
______________________________
(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 $2.1 million, $2.6 million, and $2.5 million for the three months ended March 31, 2024, December 31, 2023, and March 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.
19

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
LOAN PORTFOLIO COMPOSITION
(Unaudited)
March 31,December 31,September 30,June 30,March 31,
(Dollars in thousands)20242023202320232023
Investor loans secured by real estate
CRE non-owner-occupied$2,309,252 $2,421,772 $2,514,056 $2,571,246 $2,590,824 
Multifamily5,558,966 5,645,310 5,719,210 5,788,030 5,955,239 
Construction and land486,734 472,544 444,576 428,287 420,079 
SBA secured by real estate (1)
35,206 36,400 37,754 38,876 40,669 
Total investor loans secured by real estate8,390,158 8,576,026 8,715,596 8,826,439 9,006,811 
Business loans secured by real estate (2)
CRE owner-occupied2,149,362 2,191,334 2,228,802 2,281,721 2,342,175 
Franchise real estate secured294,938 304,514 313,451 318,539 371,902 
SBA secured by real estate (3)
48,426 50,741 53,668 57,084 60,527 
Total business loans secured by real estate2,492,726 2,546,589 2,595,921 2,657,344 2,774,604 
Commercial loans (4)
Commercial and industrial1,774,487 1,790,608 1,588,771 1,744,763 1,967,128 
Franchise non-real estate secured301,895 319,721 335,053 351,944 388,722 
SBA non-real estate secured10,946 10,926 10,667 9,688 10,437 
Total commercial loans2,087,328 2,121,255 1,934,491 2,106,395 2,366,287 
Retail loans
Single family residential (5)
72,353 72,752 70,984 70,993 70,913 
Consumer1,830 1,949 1,958 2,241 3,174 
Total retail loans74,183 74,701 72,942 73,234 74,087 
Loans held for investment before basis adjustment (6)
13,044,395 13,318,571 13,318,950 13,663,412 14,221,789 
Basis adjustment associated with fair value hedge (7)
(32,324)(29,551)(48,830)(53,130)(50,005)
Loans held for investment13,012,071 13,289,020 13,270,120 13,610,282 14,171,784 
Allowance for credit losses for loans held for investment(192,340)(192,471)(188,098)(192,333)(195,388)
Loans held for investment, net$12,819,731 $13,096,549 $13,082,022 $13,417,949 $13,976,396 
Loans held for sale, at lower of cost or fair value$— $— $641 $2,184 $1,247 
______________________________
(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 net deferred origination costs (fees) of $797,000, $(74,000), $451,000, $142,000, and $(745,000), and unaccreted fair value net purchase discounts of $41.2 million, $43.3 million, $46.2 million, $48.4 million, and $52.2 million as of March 31, 2024, December 31, 2023, September 30, 2023, June 30, 2023, and March 31, 2023, respectively.
(7) Represents the basis adjustment associated with the application of hedge accounting on certain loans.




20

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
ASSET QUALITY INFORMATION
(Unaudited)
 March 31,December 31,September 30,June 30,March 31,
(Dollars in thousands)20242023202320232023
Asset quality
Nonperforming loans$63,806 $24,817 $25,458 $17,151 $24,872 
Other real estate owned248 248 450 270 5,499 
Nonperforming assets$64,054 $25,065 $25,908 $17,421 $30,371 
Total classified assets (1)
$204,937 $142,210 $149,708 $120,216 $166,576 
Allowance for credit losses192,340 192,471 188,098 192,333 195,388 
Allowance for credit losses as a percent of total nonperforming loans301 %776 %739 %1,121 %786 %
Nonperforming loans as a percent of loans held for investment0.49 0.19 0.19 0.13 0.18 
Nonperforming assets as a percent of total assets0.34 0.13 0.13 0.08 0.14 
Classified loans to total loans held for investment1.57 1.07 1.12 0.88 1.14 
Classified assets to total assets1.09 0.75 0.74 0.58 0.78 
Net loan charge-offs for the quarter ended$6,419 $3,902 $6,752 $3,665 $3,284 
Net loan charge-offs for the quarter to average total loans 0.05 %0.03 %0.05 %0.03 %0.02 %
Allowance for credit losses to loans held for investment (2)
1.48 1.45 1.42 1.41 1.38 
Delinquent loans (3)
   
30 - 59 days$1,983 $2,484 $2,967 $649 $761 
60 - 89 days974 1,294 475 31 1,198 
90+ days9,221 6,276 7,484 30,271 18,884 
Total delinquency$12,178 $10,054 $10,926 $30,951 $20,843 
Delinquency as a percent of loans held for investment0.09 %0.08 %0.08 %0.23 %0.15 %
______________________________
(1) Includes substandard and doubtful loans, and other real estate owned.
(2) At March 31, 2024, 25% of loans held for investment include a fair value net discount of $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. At September 30, 2023, 24% of loans held for investment include a fair value net discount of $46.2 million, or 0.35% of loans held for investment. At June 30, 2023, 25% of loans held for investment include a fair value net discount of $48.4 million, or 0.35% of loans held for investment. At March 31, 2023, 26% of loans held for investment include a fair value net discount of $52.2 million, or 0.37% of loans held for investment.
(3) Nonaccrual loans are included in this aging analysis based on the loan's past due status.

21

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
March 31, 2024
Investor loans secured by real estate
CRE non-owner-occupied$24,008 $2,657 $— $— $24,008 $17,499 
SBA secured by real estate (2)
1,258 — — — 1,258 1,258 
Total investor loans secured by real estate25,266 2,657 — — 25,266 18,757 
Business loans secured by real estate (3)
CRE owner-occupied12,602 — — — 12,602 12,602 
Franchise real estate secured— — 292 43 292 — 
Total business loans secured by real estate12,602 — 292 43 12,894 12,602 
Commercial loans (4)
Commercial and industrial1,380 — 22,161 1,521 23,541 13,541 
Franchise non-real estate secured— — 1,559 231 1,559 — 
SBA not secured by real estate546 — — — 546 546 
Total commercial loans1,926 — 23,720 1,752 25,646 14,087 
Totals nonaccrual loans$39,794 $2,657 $24,012 $1,795 $63,806 $45,446 
______________________________
(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 that are collateralized by real estate where the operating cash flow of the business is the primary source of repayment.
(4) Loans to businesses where the operating cash flow of the business is the primary source of repayment.

22

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
PAST DUE STATUS
(Unaudited)
Days Past Due (7)
(Dollars in thousands)Current30-5960-8990+Total
March 31, 2024
Investor loans secured by real estate
CRE non-owner-occupied$2,308,852 $— $— $400 $2,309,252 
Multifamily5,558,966 — — — 5,558,966 
Construction and land486,734 — — — 486,734 
SBA secured by real estate (1)
34,409 — 381 416 35,206 
Total investor loans secured by real estate8,388,961 — 381 816 8,390,158 
Business loans secured by real estate (2)
CRE owner-occupied2,144,734 — — 4,628 2,149,362 
Franchise real estate secured294,646 — — 292 294,938 
SBA secured by real estate (3)
48,426 — — — 48,426 
Total business loans secured by real estate2,487,806 — — 4,920 2,492,726 
Commercial loans (4)
Commercial and industrial1,770,803 1,729 575 1,380 1,774,487 
Franchise non-real estate secured300,336 — — 1,559 301,895 
SBA not secured by real estate10,146 254 — 546 10,946 
Total commercial loans2,081,285 1,983 575 3,485 2,087,328 
Retail loans
Single family residential (5)
72,335 — 18 — 72,353 
Consumer loans1,830 — — — 1,830 
Total retail loans74,165 — 18 — 74,183 
Loans held for investment before basis adjustment (6)
$13,032,217 $1,983 $974 $9,221 $13,044,395 
______________________________
(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 $32.3 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.



23

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
CREDIT RISK GRADES
(Unaudited)
 
(Dollars in thousands)PassSpecial
Mention		Substandard
Doubtful
Total Gross
Loans
March 31, 2024
Investor loans secured by real estate    
CRE non-owner-occupied$2,271,367 $6,699 $31,186 $— $2,309,252 
Multifamily5,511,977 29,879 17,110 — 5,558,966 
Construction and land486,303 431 — — 486,734 
SBA secured by real estate (1)
27,485 — 7,721 — 35,206 
Total investor loans secured by real estate8,297,132 37,009 56,017 — 8,390,158 
Business loans secured by real estate (2)
CRE owner-occupied2,056,124 49,227 44,011 — 2,149,362 
Franchise real estate secured287,593 1,597 5,748 — 294,938 
SBA secured by real estate (3)
43,907 82 4,437 — 48,426 
Total business loans secured by real estate2,387,624 50,906 54,196 — 2,492,726 
Commercial loans (4)
   
Commercial and industrial1,620,751 75,752 73,875 4,109 1,774,487 
Franchise non-real estate secured285,554 648 15,693 — 301,895 
SBA not secured by real estate10,147 — 799 — 10,946 
Total commercial loans1,916,452 76,400 90,367 4,109 2,087,328 
Retail loans
Single family residential (5)
72,353 — — — 72,353 
Consumer loans1,830 — — — 1,830 
Total retail loans74,183 — — — 74,183 
Loans held for investment before basis adjustment (6)
$12,675,391 $164,315 $200,580 $4,109 $13,044,395 
______________________________
(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 $32.3 million to the carrying amount of certain loans included in fair value hedging relationships.

24

GAAP TO NON-GAAP RECONCILIATIONS

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
(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 Ended
 March 31,December 31,March 31,
(Dollars in thousands)202420232023
Net income (loss)$47,025 $(135,376)$62,562 
Less: net loss from investment securities repositioning— (254,065)— 
Add: FDIC special assessment523 2,080 — 
Less: tax adjustment (1)
148 72,387 — 
Adjusted net income for average assets$47,400 $48,382 $62,562 
Average assets$19,034,396 $19,624,945 $21,684,873 
ROAA (annualized)
0.99 %(2.76)%1.15 %
Adjusted ROAA (annualized)
1.00 %0.99 %1.15 %
______________________________
(1) Adjusted by statutory tax rate
25

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 Ended
 March 31,December 31,March 31,
(Dollars in thousands)202420232023
Net income (loss)$47,025 $(135,376)$62,562 
Plus: amortization of intangible assets expense2,836 3,022 3,171 
Less: tax adjustment (1)
801 854 901 
Net income (loss) for average tangible common equity$49,060 $(133,208)$64,832 
Less: net loss from investment securities repositioning— (254,065)— 
Add: FDIC special assessment523 2,080 — 
Less: tax adjustment (1)
148 72,387 — 
Adjusted net income for average tangible common equity$49,435 $50,550 $64,832 
Average stockholders' equity$2,895,949 $2,848,951 $2,822,392 
Less: average intangible assets42,134 45,050 54,310 
Less: average goodwill901,312 901,312 901,312 
Average tangible common equity1,952,503 1,902,589 1,866,770 
Add: average after-tax realized loss from investment securities repositioning— (94,887)— 
Adjusted average tangible common equity$1,952,503 $1,807,702 $1,866,770 
ROAE (annualized)6.50 %(19.01)%8.87 %
Adjusted ROAE (annualized)6.55 %7.03 %8.87 %
ROATCE (annualized)10.05 %(28.01)%13.89 %
Adjusted ROATCE (annualized)10.13 %11.19 %13.89 %
_____________________________________
(1) Adjusted by statutory tax rate.



26

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 Ended
March 31,December 31,March 31,
(Dollars in thousands, except per share data)202420232023
Basic
Net income (loss) $47,025 $(135,376)$62,562 
Less: dividends and undistributed earnings allocated to participating securities(779)(560)(823)
Net income (loss) allocated to common stockholders46,246 (135,936)61,739 
Less: net loss from investment securities repositioning— (254,065)— 
Add: FDIC special assessment523 2,080 — 
Less: tax adjustment (1)
148 72,387 — 
Adjusted net income allocated to common stockholders$46,621 $47,822 $61,739 
Weighted average common shares outstanding94,350,259 94,233,813 93,857,812 
Basic earnings (loss) per common share$0.49 $(1.44)$0.66 
Adjusted basic earnings per common share$0.49 $0.51 $0.66 
Diluted
Net income (loss) allocated to common stockholders$46,246 $(135,936)$61,739 
Less: net loss from investment securities repositioning— (254,065)— 
Add: FDIC special assessment523 2,080 — 
Less: tax adjustment (1)
148 72,387 — 
Adjusted net income allocated to common stockholders$46,621 $47,822 $61,739 
Weighted average common shares outstanding94,350,259 94,233,813 93,857,812 
Dilutive effect of share-based compensation127,096 — 324,710 
Weighted average diluted common shares94,477,355 94,233,813 94,182,522 
Dilutive effect of share-based compensation— 101,065 — 
Adjusted weighted average diluted common shares94,477,355 94,334,878 94,182,522 
Diluted earnings (loss) per common share$0.49 $(1.44)$0.66 
Adjusted diluted earnings per common share$0.49 $0.51 $0.66 
______________________________
(1) Adjusted by statutory tax rate
27

Pre-provision net revenue is a non-GAAP financial measure derived from GAAP-based amounts. We calculate the pre-provision net revenue by excluding income tax and provision for credit losses from net income. The adjusted pre-provision net income further excludes the net loss from investment securities repositioning during the fourth quarter of 2023 and the FDIC special assessment to provide a better comparison of financial performance. 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 to the financial results of prior periods.
Three Months Ended
March 31,December 31,March 31,
(Dollars in thousands)202420232023
Interest income$213,431 $217,192 $221,343 
Interest expense68,304 70,403 52,733 
Net interest income145,127 146,789 168,610 
Noninterest income (loss)25,774 (234,194)21,186 
Revenue (loss)170,901 (87,405)189,796 
Noninterest expense102,633 102,770 101,352 
Pre-provision net revenue (loss)68,268 (190,175)88,444 
Less: net loss from investment securities repositioning— (254,065)— 
Add: FDIC special assessment523 2,080 — 
Adjusted pre-provision net revenue$68,791 $65,970 $88,444 
Pre-provision net revenue (loss) (annualized)$273,072 $(760,700)$353,776 
Adjusted pre-provision net revenue (annualized)$275,164 $263,880 $353,776 
Average assets$19,034,396 $19,624,945 $21,684,873 
Pre-provision net revenue (loss) to average assets0.36 %(0.97)%0.41 %
Pre-provision net revenue (loss) to average assets (annualized)1.43 %(3.88)%1.63 %
Adjusted pre-provision net revenue on average assets0.36 %0.34 %0.41 %
Adjusted pre-provision net revenue on average assets (annualized)1.45 %1.34 %1.63 %


28

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 Ended
March 31,December 31,March 31,
(Dollars in thousands)202420232023
Total noninterest expense$102,633 $102,770 $101,352 
Less: amortization of intangible assets2,836 3,022 3,171 
Less: other real estate owned operations, net46 103 108 
Adjusted noninterest expense99,751 99,645 98,073 
Less: FDIC special assessment523 2,080 — 
Adjusted noninterest expense excluding FDIC special assessment$99,228 $97,565 $98,073 
Net interest income before provision for credit losses$145,127 $146,789 $168,610 
Add: total noninterest income (loss)25,774 (234,194)21,186 
Less: net (loss) gain from sales of investment securities— (254,065)138 
Less: net loss from other real estate owned
— (24)— 
Less: net gain from debt extinguishment5,067 793 — 
Adjusted revenue
$165,834 $165,891 $189,658 
Efficiency ratio60.2 %60.1 %51.7 %
Adjusted efficiency ratio excluding FDIC special assessment59.8 %58.8 %51.7 %


29

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.
 March 31,December 31,September 30,June 30,March 31,
(Dollars in thousands, except per share data)20242023202320232023
Total stockholders' equity$2,902,801 $2,882,581 $2,855,534 $2,849,134 $2,831,161 
Less: intangible assets941,761 944,597 947,619 950,674 953,729 
Tangible common equity$1,961,040 $1,937,984 $1,907,915 $1,898,460 $1,877,432 
Total assets$18,813,181 $19,026,645 $20,275,720 $20,747,883 $21,361,564 
Less: intangible assets941,761 944,597 947,619 950,674 953,729 
Tangible assets$17,871,420 $18,082,048 $19,328,101 $19,797,209 $20,407,835 
Tangible common equity ratio10.97 %10.72 %9.87 %9.59 %9.20 %
Common shares issued and outstanding96,459,96695,860,09295,900,84795,906,21795,714,777
Book value per share$30.09 $30.07 $29.78 $29.71 $29.58 
Less: intangible book value per share9.76 9.85 9.88 9.91 9.96 
Tangible book value per share$20.33 $20.22 $19.89 $19.79 $19.61 

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 Ended
March 31,December 31,March 31,
(Dollars in thousands)202420232023
Total deposits interest expense$59,506 $60,915 $40,234 
Less: certificates of deposit interest expense19,075 16,758 7,775 
Less: brokered certificates of deposit interest expense6,669 10,759 13,056 
Non-maturity deposit expense$33,762 $33,398 $19,403 
Total average deposits$15,055,747 $15,536,701 $17,324,442 
Less: average certificates of deposit1,727,728 1,604,507 1,206,966 
Less: average brokered certificates of deposit568,872 918,596 1,443,783 
Average non-maturity deposits$12,759,147 $13,013,598 $14,673,693 
Cost of non-maturity deposits1.06 %1.02 %0.54 %
30