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Pacific Premier Bancorp (PPBI) AI Stock Analysis

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PPBI

Pacific Premier Bancorp

(NASDAQ:PPBI)

Rating:70Outperform
Price Target:
$24.00
▲(5.31% Upside)
Pacific Premier Bancorp's overall stock score reflects strong financial performance and a fair valuation, supported by a robust dividend yield. The technical analysis indicates mild bullish momentum. However, the legal challenges associated with the merger introduce some risk, slightly offsetting the positive regulatory approvals. The absence of recent earnings call data limits insights into management's current outlook.

Pacific Premier Bancorp (PPBI) vs. SPDR S&P 500 ETF (SPY)

Pacific Premier Bancorp Business Overview & Revenue Model

Company DescriptionPacific Premier Bancorp, Inc. operates as the bank holding company for Pacific Premier Bank that provides banking services to businesses, professionals, real estate investors, and non-profit organizations. The company accepts deposit products, such as checking, money market, and savings accounts; and certificates of deposit. Its loan portfolio includes commercial real estate owner and non-owner-occupied, multifamily, construction and land, franchise real estate secured, small business administration (SBA), and SBA paycheck protection program loans; revolving lines or credit, term loans, seasonal loans, and loans secured by liquid collateral; one-to-four family and home equity lines of credit loans; and savings account secured loans and auto loans. The company also offers cash management, electronic banking, treasury management, and online bill payment services. It operates 61 full-service depository branches located in Arizona, California, Nevada, Oregon, and Washington. Pacific Premier Bancorp, Inc. was founded in 1983 and is headquartered in Irvine, California.
How the Company Makes MoneyPacific 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 Earnings Call Summary

Earnings Call Date:Jun 30, 2025
(Q4-2024)
|
% Change Since: 9.73%|
Next Earnings Date:Oct 16, 2025
Earnings Call Sentiment Positive
The earnings call reflects a generally positive outlook, with strong quarterly performance, improved funding mix, and robust capital ratios indicating resilience and potential for future growth. However, challenges such as the impact of California wildfires and narrowing net interest margins suggest areas of concern that need monitoring.
Q4-2024 Updates
Positive Updates
Solid Fourth Quarter Performance
Pacific Premier Bancorp delivered a solid fourth quarter with earnings per share of $0.35, a return on average assets of 75 basis points, and a return on tangible common equity of 7.2%.
Improvement in Funding Mix
The company reduced higher cost deposits by $163 million while increasing lower-cost transaction deposits by $146 million, effectively enhancing the overall balance sheet position.
Strong Capital Ratios
Tangible common equity ratio increased to 11.92%, and the total risk-based capital ratio increased nearly 300 basis points year-over-year, ranking near the top of the KBW Regional Banking Index.
Positive Loan Origination Activity
New loan commitments totaled $316 million, the highest level since Q3 2022. Loan pipelines are ramping up, indicating strong potential for future growth.
Resilient Asset Quality
Nonperforming loans decreased by $11 million to $28 million, and total delinquencies fell to $2.6 million, or 0.02% of loans, demonstrating effective credit risk management.
Negative Updates
Impact of California Wildfires
Approximately 4 loans totaling $8 million were affected by the wildfires, with $5 million reflecting a single credit secured by multiple properties, indicating potential risk exposure.
Narrowing Net Interest Margin
Net interest margin narrowed 14 basis points to 3.02% due to lower swap income and payoffs of higher-yielding loans, indicating pressure on profitability.
Provision Recapture and Expenses
The company recorded a provision recapture of $814,000, down from $486,000 of provision expense in the prior quarter, alongside higher legal and professional service costs.
Company Guidance
During the Pacific Premier Bancorp fourth-quarter 2024 earnings call, guidance was provided with several key financial metrics. The company reported earnings per share of $0.35, a return on average assets of 75 basis points, and a return on tangible common equity of 7.2%. Their cost of funds decreased by 9 basis points to 1.88%, while the spot deposit cost at year-end declined by 8 basis points to 1.72%. The loan-to-deposit ratio stood at 83.3%, and the tangible common equity ratio was 11.92%. Projections for 2025 include net interest income between $500 million and $525 million, noninterest income in the range of $80 million to $85 million, and noninterest expense between $405 million and $415 million. The company anticipates low to mid-single-digit loan growth and expects to maintain its dividend while exploring strategic capital deployment options, including potential M&A activities and share repurchases.

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
76
Positive
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
68
Positive
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
82
Very Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue801.87M853.39M672.35M834.07M784.47M678.82M
Gross Profit535.95M562.98M399.27M757.77M820.98M430.49M
EBITDA204.10M235.31M60.19M413.09M492.74M103.02M
Net Income137.95M158.80M30.85M283.74M339.89M60.35M
Balance Sheet
Total Assets17.78B17.90B19.03B21.69B21.09B19.74B
Cash, Cash Equivalents and Short-Term Investments1.69B1.41B2.08B3.70B4.58B4.81B
Total Debt124.02M272.45M931.84M1.33B888.57M532.51M
Total Liabilities14.81B14.95B16.14B18.89B18.21B16.99B
Stockholders Equity2.98B2.96B2.88B2.80B2.89B2.75B
Cash Flow
Free Cash Flow176.25M222.79M244.37M403.56M310.93M200.89M
Operating Cash Flow180.83M226.46M250.98M411.03M320.21M212.30M
Investing Cash Flow382.47M764.23M2.47B-160.09M-2.01B570.48M
Financing Cash Flow-671.98M-1.32B-2.89B545.61M1.11B-228.87M

Pacific Premier Bancorp Technical Analysis

Technical Analysis Sentiment
Positive
Last Price22.79
Price Trends
50DMA
21.69
Positive
100DMA
21.00
Positive
200DMA
22.61
Positive
Market Momentum
MACD
0.43
Negative
RSI
56.21
Neutral
STOCH
66.85
Neutral
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 22.79 is above the 20-day moving average (MA) of 22.23, above the 50-day MA of 21.69, and above the 200-day MA of 22.61, indicating a bullish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 56.21 is Neutral, neither overbought nor oversold. The STOCH value of 66.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PPBI.

Pacific Premier Bancorp Risk Analysis

Pacific Premier Bancorp disclosed 28 risk factors in its most recent earnings report. Pacific Premier Bancorp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Pacific Premier Bancorp Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$2.21B15.218.16%3.20%10.00%7.35%
80
Outperform
$2.58B18.076.31%2.44%5.70%18.72%
78
Outperform
$2.75B26.515.81%1.47%-5.80%-22.11%
73
Outperform
$2.07B14.816.62%2.15%3.16%27.33%
73
Outperform
$2.23B17.4013.51%1.61%13.28%22.43%
70
Outperform
$2.26B16.304.59%5.72%23.85%
68
Neutral
$17.49B11.7010.34%3.85%9.75%0.63%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PPBI
Pacific Premier Bancorp
22.79
-1.95
-7.88%
HTH
Hilltop Holdings
33.21
0.91
2.82%
NBTB
NBT Bancorp
42.52
-5.19
-10.88%
SYBT
Stock Yards Bancorp
77.05
17.85
30.15%
SBCF
Seacoast Banking Of Florida
29.17
2.31
8.60%
FBK
FB Financial
50.18
2.98
6.31%

Pacific Premier Bancorp Corporate Events

M&A TransactionsRegulatory Filings and Compliance
Pacific Premier Bancorp Merger Receives Regulatory Approvals
Positive
Aug 6, 2025

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.

The most recent analyst rating on (PPBI) stock is a Hold with a $23.00 price target. To see the full list of analyst forecasts on Pacific Premier Bancorp stock, see the PPBI Stock Forecast page.

M&A TransactionsDividendsFinancial Disclosures
Pacific Premier Declares Dividend Amid Merger Preparations
Neutral
Jul 24, 2025

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.

The most recent analyst rating on (PPBI) stock is a Hold with a $23.00 price target. To see the full list of analyst forecasts on Pacific Premier Bancorp stock, see the PPBI Stock Forecast page.

M&A TransactionsShareholder Meetings
Pacific Premier Bancorp Approves Merger with Columbia
Positive
Jul 22, 2025

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.

The most recent analyst rating on (PPBI) stock is a Hold with a $23.00 price target. To see the full list of analyst forecasts on Pacific Premier Bancorp stock, see the PPBI Stock Forecast page.

M&A TransactionsLegal Proceedings
Pacific Premier Bancorp Faces Legal Challenges in Merger
Negative
Jul 11, 2025

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.

The most recent analyst rating on (PPBI) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on Pacific Premier Bancorp stock, see the PPBI Stock Forecast page.

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Pacific Premier Bancorp Approves Key Proposals at Annual Meeting
Neutral
May 20, 2025

On May 19, 2025, Pacific Premier Bancorp, Inc. held its Annual Meeting of Stockholders, where several key proposals were approved. Notably, an amendment to the 2022 Long-Term Incentive Plan was approved, increasing the number of shares reserved for issuance by 2,000,000. Additionally, the election of eleven directors, the approval of executive compensation, and the appointment of Deloitte & Touche LLP as the independent auditor for the fiscal year ending December 31, 2025, were ratified. These decisions are expected to impact the company’s operational strategies and governance structure.

The most recent analyst rating on (PPBI) stock is a Hold with a $23.00 price target. To see the full list of analyst forecasts on Pacific Premier Bancorp stock, see the PPBI Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 09, 2025