Pacific Premier Bancorp (PPBI) AI Stock Analysis

• Market Cap: $2.38B
• Dividend Yield: 5.39%
• Average Volume (3M): 1.69M
• Price to Earnings (P/E): 17.2
• Beta (1Y): 1.15
• Revenue Growth: 23.85%
• EPS Growth: N/A
• Country: US
• Employees: 1,325
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.40
• Shares Outstanding: 96,991,440
• 10 Day Avg. Volume: 2,948,730
• 30 Day Avg. Volume: 1,687,667
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 2.52
• Enterprise Value/Gross Profit: 3.77
• Enterprise Value/Ebitda: 9.90
• 1Y Price Target: $27.00
• Price Target Upside: 10.25% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: $27.00 ▲(10.25% Upside)

The overall stock score of 72 reflects a stable financial position with strong technical indicators and positive corporate events. The acquisition by Columbia Banking System is a significant positive factor, enhancing market presence. However, declining revenue growth and cash flow challenges are areas of concern that need addressing.

Pacific Premier Bancorp Business Overview & Revenue Model

Company Description

Pacific Premier Bancorp, Inc. (PPBI) is a financial holding company based in the United States, primarily engaged in providing a wide range of banking and financial services through its wholly-owned subsidiary, Pacific Premier Bank. The company operates in the commercial banking sector, offering services such as commercial real estate loans, consumer and residential loans, treasury management, and deposit products. Additionally, PPBI caters to various client segments, including individuals, small to medium-sized businesses, and commercial enterprises, focusing on delivering tailored financial solutions to meet diverse customer needs.

How the Company Makes Money

Pacific Premier Bancorp generates revenue primarily through the interest income earned on loans it provides to customers, which includes commercial real estate loans, residential mortgages, and consumer loans. The company also earns interest from investment securities and other financial instruments. In addition to interest income, PPBI generates non-interest income through various fees associated with its banking services, such as account maintenance fees, transaction fees, and fees for treasury management services. The bank’s strategy includes building strong relationships with clients, which helps to increase loan volume and deposits, further contributing to its earnings. The company may also engage in partnerships with other financial institutions and businesses to enhance its service offerings and expand its market reach.

Pacific Premier Bancorp Financial Statement Overview

Summary

Pacific Premier Bancorp demonstrates robust profitability and a strong cash flow position, supported by low leverage. While the income statement highlights stable margins, recent revenue declines may pose challenges. The balance sheet reflects financial stability, and cash flows are efficiently managed despite some recent downturns in growth. Overall, the company appears financially sound with opportunities for growth and improvement in revenue and returns.

Income Statement

The company shows a strong gross profit margin of 66.15% and a healthy net profit margin of 17.96% in the TTM period. Revenue growth has been volatile, with a decline in the latest period compared to the previous year, but the company has maintained solid EBIT and EBITDA margins at 23.87% and 26.60% respectively. Overall, the income statement reflects stable profitability, though the recent decline in revenues may be a concern.

Balance Sheet

The balance sheet shows a conservative debt-to-equity ratio of 0.09, indicating low leverage. The return on equity stands at 4.98%, which is moderate, suggesting room for improvement in shareholder returns. The equity ratio is 16.40%, reflecting a stable financial position. Overall, the balance sheet is strong with low leverage, but there could be potential for enhancing returns.

Cash Flow

The company exhibits a strong free cash flow to net income ratio of 1.27, indicating efficient cash flow management. Operating cash flow to net income ratio is 1.29, further emphasizing solid cash conversion. However, the free cash flow growth rate shows a decline of 15.95%, which may raise concerns about future cash generation capabilities. Overall, the cash flow statement indicates strong cash conversion, albeit with recent declines in free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	801.87M	853.39M	672.35M	834.07M	784.47M	678.82M
Gross Profit	535.95M	562.98M	399.27M	757.77M	820.98M	430.49M
EBITDA	204.10M	235.31M	60.19M	413.09M	492.74M	103.02M
Net Income	137.95M	158.80M	30.85M	283.74M	339.89M	60.35M
Balance Sheet
Total Assets	17.78B	17.90B	19.03B	21.69B	21.09B	19.74B
Cash, Cash Equivalents and Short-Term Investments	1.69B	1.41B	2.08B	3.70B	4.58B	4.81B
Total Debt	124.02M	272.45M	931.84M	1.33B	888.57M	532.51M
Total Liabilities	14.81B	14.95B	16.14B	18.89B	18.21B	16.99B
Stockholders Equity	2.98B	2.96B	2.88B	2.80B	2.89B	2.75B
Cash Flow
Free Cash Flow	176.25M	222.79M	244.37M	403.56M	310.93M	200.89M
Operating Cash Flow	180.83M	226.46M	250.98M	411.03M	320.21M	212.30M
Investing Cash Flow	382.47M	764.23M	2.47B	-160.09M	-2.01B	570.48M
Financing Cash Flow	-671.98M	-1.32B	-2.89B	545.61M	1.11B	-228.87M

Pacific Premier Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.49
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PPBI, the sentiment is Positive. The current price of 24.49 is above the 20-day moving average (MA) of 23.22, above the 50-day MA of 22.26, and above the 200-day MA of 22.56, indicating a bullish trend. The MACD of 0.73 indicates Negative momentum. The RSI at 67.27 is Neutral, neither overbought nor oversold. The STOCH value of 80.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PPBI.

Pacific Premier Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NBTB	80 Outperform	$2.29B	15.56	8.16%	3.22%	10.00%	7.35%
SBCF	75 Outperform	$2.71B	18.93	6.31%	2.33%	5.70%	18.72%
HTH	73 Outperform	$2.19B	15.64	6.62%	2.03%	3.16%	27.33%
PPBI	72 Outperform	$2.38B	17.16	4.59%	5.39%	23.85%	―
FBK	70 Neutral	$2.87B	27.59	5.81%	1.39%	-5.80%	-22.11%
SYBT	69 Neutral	$2.28B	17.74	13.51%	1.60%	13.28%	22.43%
Sector *	68 Neutral	$18.10B	11.52	9.93%	3.73%	9.70%	1.14%

Pacific Premier Bancorp Corporate Events

Columbia Banking System Acquires Pacific Premier Bancorp

On September 2, 2025, Columbia Banking System completed its acquisition of Pacific Premier Bancorp, significantly enhancing its presence in Southern California and solidifying its market leadership across the western U.S. This strategic move increases Columbia’s assets to approximately $70 billion and expands its operations to over 350 locations in eight states, reinforcing its position as a leading regional bank. The merger also resulted in the integration of former Pacific Premier directors into Columbia’s board and the transition of Pacific Premier’s stockholders to Columbia’s shareholder base.

Pacific Premier Bancorp Merger Receives Regulatory Approvals

On August 6, 2025, Columbia Banking System, Inc. and Pacific Premier Bancorp, Inc. announced they have received all necessary regulatory approvals for their merger, initially announced on April 23, 2025. The merger, expected to close by August 31, 2025, will see Columbia acquire Pacific Premier in an all-stock transaction. This merger aims to strengthen Columbia’s market position in the western U.S. and enhance long-term value for stakeholders. The transaction has been approved by the Federal Reserve, the FDIC, and the Oregon Department of Consumer and Business Services, with all shareholder approvals obtained by July 21, 2025.

Pacific Premier Declares Dividend Amid Merger Preparations

On July 23, 2025, Pacific Premier Bancorp‘s Board of Directors declared a quarterly dividend of $0.33 per share, payable on August 15, 2025. The company reported a net income of $32.1 million for the second quarter of 2025, reflecting a decrease from previous quarters. Despite the decline, the company maintained strong asset quality and a favorable deposit mix, while also redeeming $150 million in subordinated notes. The company is preparing for a merger with Columbia Banking System, Inc., anticipated to close by September 1, 2025, pending regulatory approvals.

Pacific Premier Bancorp Approves Merger with Columbia

On July 21, 2025, Pacific Premier Bancorp held a special meeting where stockholders approved a merger with Columbia Banking System. This merger, which was also approved by Columbia’s shareholders, will see Pacific Premier merge into Columbia, enhancing market leadership across the West and creating significant value for stakeholders. The transaction is expected to close later in 2025, pending regulatory approvals and other customary conditions.

Pacific Premier Bancorp Faces Legal Challenges in Merger

On April 23, 2025, Pacific Premier Bancorp, Inc. announced a merger agreement with Columbia Banking System, Inc., which involves multiple merger steps, ultimately resulting in Umpqua Bank as the surviving entity. However, the merger has faced legal challenges, with complaints filed against both companies alleging breaches of fiduciary duty and misrepresentation in the joint proxy statement. Despite these challenges, Pacific Premier and Columbia have decided to supplement the joint proxy statement to address the claims, while denying any wrongdoing.