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Pacific Premier Bancorp Inc (PPBI)
NASDAQ:PPBI
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Pacific Premier Bancorp
(NASDAQ:PPBI)66Neutral
Pacific Premier Bancorp (PPBI) vs. S&P 500 (SPY)
Market Cap
$2.06B
Dividend Yield5.93%
Average Volume (3M)603.12K
Price to Earnings (P/E)13.5
Beta (1Y)1.49
Revenue Growth-30.61%
EPS Growth-105.76%
CountryUS
Employees1,345
SectorFinancial
Sector Strength93
IndustryBanking
Share Statistics
EPS (TTM)1.65
Shares Outstanding96,437,780
10 Day Avg. Volume687,512
30 Day Avg. Volume603,122
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)N/A
Price to Sales (P/S)3.49
Price to Cash Flow (P/CF)13.20
P/FCF Ratio5.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$30.33Price Target Upside42.06% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Pacific Premier Bancorp Business Overview & Revenue Model
Company DescriptionPacific Premier Bancorp, Inc. (PPBI) is a bank holding company headquartered in Irvine, California. It operates primarily through its wholly-owned subsidiary, Pacific Premier Bank. The company provides a range of financial services to businesses and individual customers, including commercial banking, real estate lending, and deposit products. Pacific Premier Bank serves a diverse customer base across multiple sectors such as commercial real estate, residential lending, and small-to-medium-sized businesses, with a strong focus on community banking.
How the Company Makes MoneyPacific Premier Bancorp generates revenue primarily through interest income from loans and investments, as well as fee-based income from various banking services. The company's key revenue streams include interest earned on commercial and residential real estate loans, commercial and industrial loans, consumer loans, and investment securities. Additionally, Pacific Premier Bancorp earns non-interest income through service charges, fees from deposit accounts, loan servicing fees, and other financial services. The bank's profitability is also influenced by its ability to manage interest rate spreads and maintain a strong credit quality portfolio. Strategic acquisitions and partnerships may also contribute to its growth and revenue generation.
Pacific Premier Bancorp Financial Statement Overview
Summary
Pacific Premier Bancorp's financial performance is characterized by robust revenue growth and improved profitability. The company's balance sheet is strong with no debt, though the equity ratio indicates increased leverage. While operating cash flow is healthy, there's room for improvement in free cash flow maintenance.Income Statement
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.72
Positive
Balance Sheet
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.65
Positive
Cash Flow
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.68
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 822.57M | 440.20M | 762.60M | 750.10M | 622.30M | Gross Profit |
| 822.57M | 440.20M | 762.60M | 750.10M | 622.30M | EBIT |
| 817.50M | 34.04M | 455.82M | 460.82M | 72.60M | EBITDA |
| 0.00 | 60.19M | 413.09M | 492.74M | 0.00 | Net Income Common Stockholders |
| 158.80M | 30.85M | 283.74M | 339.89M | 60.35M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.80B | 936.47M | 3.70B | 4.58B | 4.81B | Total Assets |
| 17.90B | 19.03B | 21.69B | 21.09B | 19.74B | Total Debt |
| 272.45M | 931.84M | 1.33B | 888.57M | 532.51M | Net Debt |
| -117.95M | -5.63M | 228.22M | 581.65M | -351.10M | Total Liabilities |
| 14.95B | 16.14B | 18.89B | 888.57M | 532.51M | Stockholders Equity |
| 2.96B | 2.88B | 2.80B | 2.89B | 2.75B |
| Cash Flow | Free Cash Flow | |||
| 226.46M | 244.37M | 403.56M | 310.93M | 200.89M | Operating Cash Flow |
| 226.46M | 250.98M | 411.03M | 320.21M | 212.30M | Investing Cash Flow |
| 764.23M | 2.47B | -160.09M | -2.01B | 570.48M | Financing Cash Flow |
| -1.32B | -2.89B | 545.61M | 1.11B | -228.87M |
Pacific Premier Bancorp Technical Analysis
Negative
21.35
Price Trends
24.41
Negative
25.48
Negative
24.38
Negative
Market Momentum
-0.80
Positive
22.71
Positive
9.26
Positive
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 21.35 is below the 20-day moving average (MA) of 23.97, below the 50-day MA of 24.41, and below the 200-day MA of 24.38, indicating a bearish trend. The MACD of -0.80 indicates Positive momentum. The RSI at 22.71 is Positive, neither overbought nor oversold. The STOCH value of 9.26 is Positive, 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 27 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $4.73B | 10.86 | 7.53% | 3.49% | 15.52% | -3.89% | |
69 Neutral | $8.25B | 17.88 | 7.62% | 0.84% | 14.99% | -16.42% | |
69 Neutral | $7.42B | 10.13 | 13.15% | 3.35% | 7.91% | 13.79% | |
66 Neutral | $2.06B | 13.52 | 5.34% | 5.93% | -30.61% | -105.76% | |
64 Neutral | $14.34B | 10.61 | 9.28% | 4.07% | 18.04% | -9.54% | |
63 Neutral | $7.66B | 11.64 | 10.72% | 4.87% | -6.54% | -21.90% | |
60 Neutral | $8.54B | 10.90 | 12.32% | 1.94% | 13.60% | 8.85% |
* Financial Sector Average
Performance Comparison
PPBI
Pacific Premier Bancorp
21.35
-0.55
-2.51%
CMA
Comerica
56.11
7.00
14.25%
FNB
F.N.B.
13.14
0.08
0.61%
PNFP
Pinnacle Financial Partners
99.42
17.95
22.03%
ZION
Zions Bancorporation National Association
47.22
7.66
19.36%
WAL
Western Alliance
72.65
15.08
26.19%
Pacific Premier Bancorp Earnings Call Summary
Earnings Call Date: Jan 23, 2025 | % Change Since: -11.45% | Next Earnings Date: Apr 29, 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.Highlights
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.
Lowlights
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 Corporate Events
Business Operations and StrategyFinancial Disclosures
Pacific Premier Bancorp Reports Strong Q4 2024 Results
Positive
Jan 28, 2025
On January 23, 2025, Pacific Premier Bancorp reported its financial results for the fourth quarter of 2024, highlighting a strong financial performance with earnings per share of $0.35. The company announced initiatives to support communities affected by the California wildfires, including expanded lending products for displaced homeowners and businesses. The fourth quarter saw growth in the loan portfolio and a shift in the funding mix towards lower-cost deposits. Pacific Premier also received approval to convert to a National Banking Association, aligning its business model for further expansion. The company maintained robust capital ratios and anticipates continued growth in loan production and deposit relationships in 2025.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.