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Pacific Premier Bancorp Inc (PPBI)
NASDAQ:PPBI

Pacific Premier Bancorp (PPBI) AI Stock Analysis

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Pacific Premier Bancorp

(NASDAQ:PPBI)

Rating:70Outperform
Price Target:
$23.50
â–²(10.48%Upside)
Pacific Premier Bancorp's strong financial performance and attractive valuation are complemented by a positive corporate event in the form of a merger, contributing significantly to its overall score. Technical analysis provides a neutral view, indicating a balanced market perception.

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

Pacific Premier Bancorp Business Overview & Revenue Model

Company DescriptionPacific Premier Bancorp, Inc. (PPBI) is a publicly traded bank holding company headquartered in Irvine, California. It operates through its wholly owned subsidiary, Pacific Premier Bank, providing a range of financial products and services to small and middle-market businesses, professionals, and individuals throughout the United States. The bank offers deposit products, commercial and residential real estate loans, commercial business loans, construction loans, and consumer loans, as well as treasury management and online banking services.
How the Company Makes MoneyPacific Premier Bancorp generates revenue primarily through interest income from its loan portfolio, which includes commercial real estate loans, residential real estate loans, and commercial business loans. The company also earns fee income from various banking services, such as treasury management, deposit account services, and loan servicing fees. Additionally, Pacific Premier Bancorp invests in securities, which contribute to its interest income. Its earnings are further supported by managing interest rate spreads between the interest it pays on deposits and the interest it earns on loans and investments. Key factors influencing the company's earnings include the economic environment, interest rate changes, and demand for banking services.

Pacific Premier Bancorp Earnings Call Summary

Earnings Call Date:Apr 23, 2025
(Q4-2024)
|
% Change Since: 7.42%|
Next Earnings Date:Jul 23, 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 shows strong revenue growth and profitability improvements with a solid balance sheet. However, the decline in the equity ratio and the decrease in free cash flow indicate areas needing attention.
Income Statement
72
Positive
Pacific Premier Bancorp experienced a significant increase in total revenue from the previous year, indicating strong growth. The net profit margin improved considerably, reflecting better profitability. However, fluctuations in EBIT and EBITDA margins suggest some variability in operational efficiency.
Balance Sheet
65
Positive
The company's balance sheet shows a strong equity position with no debt in the latest year, enhancing stability. The return on equity is solid, indicating effective use of equity capital. However, the equity ratio declined slightly, suggesting increased leverage over time.
Cash Flow
68
Positive
Operating cash flow remains strong, supporting the company's ability to generate cash from operations. The free cash flow decreased compared to the prior year, indicating potential challenges in maintaining cash reserves. The free cash flow to net income ratio is healthy, but the overall cash flow dynamics indicate room for improvement.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
836.42M853.39M672.35M834.07M784.47M678.82M
Gross Profit
571.13M562.98M399.27M762.60M820.98M430.49M
EBIT
196.31M817.50M34.04M455.82M460.82M180.74M
EBITDA
218.77M235.31M60.19M413.09M492.74M103.02M
Net Income Common Stockholders
147.80M158.80M30.85M283.74M339.89M60.35M
Balance SheetCash, Cash Equivalents and Short-Term Investments
0.001.80B936.47M3.70B4.58B4.81B
Total Assets
18.09B17.90B19.03B21.69B21.09B19.74B
Total Debt
272.58M272.45M931.84M1.33B888.57M532.51M
Net Debt
272.58M-338.13M-5.63M228.22M581.65M-351.10M
Total Liabilities
15.12B14.95B16.14B18.89B888.57M532.51M
Stockholders Equity
2.97B2.96B2.88B2.80B2.89B2.75B
Cash FlowFree Cash Flow
188.44M222.79M244.37M403.56M310.93M200.89M
Operating Cash Flow
191.17M226.46M250.98M411.03M320.21M212.30M
Investing Cash Flow
461.57M764.23M2.47B-160.09M-2.01B570.48M
Financing Cash Flow
-913.09M-1.32B-2.89B545.61M1.11B-228.87M

Pacific Premier Bancorp Technical Analysis

Technical Analysis Sentiment
Negative
Last Price21.27
Price Trends
50DMA
20.64
Positive
100DMA
21.97
Negative
200DMA
23.46
Negative
Market Momentum
MACD
0.08
Positive
RSI
49.86
Neutral
STOCH
63.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PPBI, the sentiment is Negative. The current price of 21.27 is below the 20-day moving average (MA) of 21.46, above the 50-day MA of 20.64, and below the 200-day MA of 23.46, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 49.86 is Neutral, neither overbought nor oversold. The STOCH value of 63.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$2.24B17.515.82%2.77%4.52%7.58%
74
Outperform
$2.20B13.919.55%3.23%12.11%16.67%
70
Outperform
$2.08B14.024.94%6.15%23.09%1086.91%
HTHTH
70
Outperform
$1.97B15.625.89%2.36%0.59%14.96%
65
Neutral
$2.24B18.4013.18%1.63%14.34%16.24%
FBFBK
65
Neutral
$2.01B16.168.27%1.73%3.30%14.32%
65
Neutral
$12.93B9.817.84%78.03%12.20%-7.74%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PPBI
Pacific Premier Bancorp
21.27
1.53
7.75%
HTH
Hilltop Holdings
30.42
1.86
6.51%
NBTB
NBT Bancorp
41.98
7.55
21.93%
SYBT
Stock Yards Bancorp
76.52
30.00
64.49%
SBCF
Seacoast Banking Of Florida
25.79
3.90
17.82%
FBK
FB Financial
43.56
8.31
23.57%

Pacific Premier Bancorp Corporate Events

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.

Shareholder MeetingsRegulatory Filings and Compliance
Pacific Premier Bancorp Proposes Share Increase Amendment
Neutral
May 9, 2025

On April 7, 2025, Pacific Premier Bancorp, Inc. issued a proxy statement for its upcoming Annual Meeting of Stockholders on May 19, 2025, proposing an amendment to increase shares available under its Long-Term Incentive Plan by 2,000,000 shares. The company provided updated information to assist shareholders and Institutional Shareholder Services in evaluating this proposal, highlighting a significant decrease in available shares from December 31, 2024, to March 31, 2025, which affects cost assessments and shareholder value transfer.

Executive/Board ChangesM&A TransactionsShareholder Meetings
Pacific Premier Bancorp Announces Merger with Columbia
Neutral
Apr 25, 2025

On April 23, 2025, Pacific Premier Bancorp, Inc. entered into a merger agreement with Columbia Banking System, Inc., resulting in a series of mergers where Pacific Premier will ultimately merge into Columbia, with Columbia as the surviving entity. The merger, which was unanimously approved by the boards of both companies, includes a stock exchange and cash compensation for Pacific Premier shareholders, and involves regulatory approvals and shareholder votes. Additionally, Pacific Premier’s CEO, Steven R. Gardner, will receive a $16.5 million bonus upon the merger’s completion, contingent on his continued employment.

M&A TransactionsBusiness Operations and Strategy
Pacific Premier Bancorp Announces Merger with Columbia
Positive
Apr 23, 2025

On April 23, 2025, Pacific Premier Bancorp and Columbia Banking System announced a definitive merger agreement, where Columbia will acquire Pacific Premier in an all-stock transaction valued at approximately $2 billion. The merger, which is expected to close in the second half of 2025, will create a leading regional bank in the Western U.S. with around $70 billion in assets, enhancing Columbia’s market presence and financial performance. The merger is projected to deliver significant financial benefits, including mid-teens EPS accretion for Columbia and improved profitability metrics. The combined company will also expand its product offerings and support local communities through enhanced services and charitable programs.

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.