NASDAQ$PPBI

Pacific Premier Bancorp Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported a net loss due to investment securities repositioning, while adjusted net income reflected solid operating performance and strong capital ratios.

Pacific Premier Bancorp reported a net loss of $135.4 million for Q4 2023, or $1.44 per diluted share, but an adjusted net income of $48.4 million, or $0.51 per diluted share, excluding the impact of securities portfolio repositioning and FDIC special assessment. The company's net interest margin expanded by 16 basis points to 3.28%, and it reduced higher cost wholesale funding by $817 million. Strong capital levels and favorable asset quality measures position the company well for 2024.

  • Net loss of $135.4 million, or $1.44 per diluted share, but adjusted net income of $48.4 million, or $0.51 per diluted share, excluding certain non-recurring items.
  • Net interest margin increased 16 basis points to 3.28% due to higher loan and investment securities yields.
  • Reduced higher cost wholesale funding by $817 million, including $617 million in brokered CDs and $200 million in FHLB borrowings.
  • Maintained strong asset quality metrics, with low delinquency rates and nonperforming assets.

Headline financials

Total Revenue

$167M

Previous: $202M-17.5%
EPS (adj)

$0.51

Previous: $0.77-33.8%
Cost of deposits

1.6%

Previous: 0.6%+169.0%
Net interest margin

3.3%

Previous: 3.6%-9.1%
Efficiency ratio

60.1%

Previous: 47.4%+26.8%
Common equity tier 1 capital ratio

14.3%

Previous: 13.0%+10.2%
Capital Expenditures

$1.01M

Previous: $2.52M-60.0%
Net Income

-$135M

Previous: $73.7M-283.8%
Operating Income

-$192M

Previous: $99.9M-292.1%
Stock-Based Comp

$4.77M

Previous: $4.75M+0.3%

Revenue & EPS history

Pacific Premier · Revenue · Quarterly

$167M

Q4 2023-17.5%vs Q4 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Pacific Premier · $23.7M total across 9 segments · Q4 2021

  • Trust custodial account fees
    $11.6M
  • Earnings on bank owned life insurance
    $3.52M
  • Service charges on deposit accounts
    $2.59M
  • Escrow and exchange fees
    $2.22M
  • Net gain from sales of loans
    $1.33M
  • Debit card interchange fee income
    $769K
  • Other income
    $754K
  • Loan servicing income
    $505K
  • Other service fee income
    $391K

Forward guidance

Pacific Premier Bancorp enters 2024 with strong capital levels, significant liquidity, and favorable asset quality. The company is committed to proactively managing its loan portfolio and responding to market dynamics, including trends in commercial real estate. The bank believes it is well-positioned to deliver value to shareholders, clients, employees, and communities.

Tailwinds

  • Strong capital levels
  • Ready access to significant liquidity
  • Favorable asset quality measures
  • Relationship-based business model
  • Proactive communication and monitoring of client businesses

Headwinds

  • Challenging operating environment
  • Emerging trends in commercial real estate markets
  • Potential stress within the loan portfolio
  • Uncertainty in domestic or foreign financial markets
  • Deposit competition and potential for increased funding costs

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 11 quarterly earnings reports · overlaid with Q4 2023

Historical avgQ4 2023

-0.0%

Avg return

Earnings day

-1.1%

Avg return

5 days after

+0.8%

Avg return

30 days after

54%

34 / 63 earnings

Positive

+11.4%

Q4 2016

Best reaction

-15.6%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2025
Q2 2025+6.6%+2.6%+14.7%
Q1 2025+5.6%+2.9%+5.1%
Q4 2025+2.0%+5.5%-1.3%
Q3 2024-3.0%+0.7%+11.1%
Q2 2024-5.4%-7.0%-7.4%
Q1 2024-1.9%-2.6%-2.4%
Q4 2023-3.4%-9.9%-19.1%
Q3 2023-9.4%-5.8%+13.0%
Q2 2023+0.4%+0.5%-10.6%
Q1 2023+5.9%-7.6%-6.2%
Q4 2022+2.4%+6.8%+8.8%
Q3 2022-1.8%+1.2%+4.0%
Q2 2022+1.1%
Q1 2022-7.8%
Q4 2021-6.7%
Q3 2021+2.8%
Q2 2021+2.0%
Q1 2021+2.5%
Q4 2020-2.2%
Q3 2020-5.0%
Q2 2020-1.7%
Q1 2020+8.3%
Q4 2019+0.9%
Q3 2019+4.9%
Q2 2019+4.0%
Q1 2019+0.9%
Q4 2018+1.2%
Q3 2018-15.6%
Q2 2018-2.5%
Q1 2018-2.8%
Q4 2017-1.5%
Q3 2017+2.2%
Q2 2017-1.6%
Q1 2017+0.8%
Q4 2016+11.4%
Q3 2016-3.6%
Q2 2016-6.5%
Q1 2016+7.3%
Q4 2015-1.7%
Q3 2015+0.4%
Q2 2015+6.0%
Q1 2015-1.3%
Q4 2014+1.7%
Q3 2014+2.6%
Q2 2014+2.0%
Q1 2014-11.6%
Q4 2013-0.1%
Q3 2013+1.1%
Q2 2013-4.5%
Q1 2013-4.3%
Q4 2012+6.2%
Q3 2012+5.6%
Q2 2012-1.0%
Q1 2011-0.7%
Q1 2012-2.1%
Q4 2009-3.0%
Q4 2011-3.0%
Q3 2010+5.2%
Q3 2011+5.2%
Q2 2011+1.4%
Q2 2010+1.4%
Q4 2010+1.4%
Q1 2010+0.8%

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