About Pacific Premier Bancorp

Pacific Premier Bancorp, Inc. operates as the bank holding company for Pacific Premier Bank (the bank) that provides banking products and services within its targeted markets in the Western United States tailored to small- and middle-market businesses, corporations, including the owners and employees of those businesses, professionals, real estate investors/operators, non-profit organizations, and consumers. The company has developed nationwide specialty banking products and service offerings for homeowners' associations (HOA) and HOA management companies. The company provides commercial real estate escrow and tax-deferred exchange services through its Commerce Escrow division. Pacific Premier Trust provides individual retirement account (IRA) custodial and maintenance services and serves as a custodian for self-directed IRAs holding various asset classes. The company organizes its business development activities and operations around three categories - commercial banking, non-fiduciary trust services, and consumer banking - and primarily conduct business throughout the Western Region of the U.S., with full-service depository branches located in Arizona, California, Nevada, and Washington. The company offers a variety of banking products and services within its targeted markets in the Western U.S. tailored to small- and middle-market businesses, corporations, including the owners and employees of those businesses, professionals, real estate investors/operators, non-profit organizations, and consumers. The company has developed nationwide specialty banking products and service offerings for homeowners' associations (HOA) and HOA management companies. The company provides commercial real estate escrow and tax-deferred exchange services through its Commerce Escrow division. Pacific Premier Trust provides individual retirement account (IRA) custodial and maintenance services and serves as a custodian for self-directed IRAs holding various asset classes. Strategic Focus The company has a market presence and a core deposit base in several major metropolitan markets along the Western U.S. The company's business strategy is centered on leveraging its high-touch relationship banking model, its broad range of banking product and service offerings, and its investment in technology. The company offers a full suite of products and services to a wide range of businesses. The company's organic growth initiatives are focused primarily on new and existing small- and middle-market business clients and to a lesser extent consumers. The company's strategy is to leverage technology, apply its disciplined approach to business development, and provide best-in-class client service to reinforce its relationship-based business banking model and deepen its existing client relationships. Through this strategic growth, the company has expanded its customer base into new geographies and has diversified and enhanced the types of products and services it is able to offer, particularly with respect to specialty businesses. Commercial and Specialty Banking The company is committed to a customer-first approach to banking by offering clients a multi-channel solution to meet their depository and treasury management needs. The company does this by integrating in-person experiences through client meetings with its relationship bankers and through its branch network, digital channels including online and mobile banking services, and through its call centers to ensure its clients' banking needs are conveniently and efficiently met. Treasury management products and services are core to the company's commercial banking business, and it has developed a comprehensive suite of products and service to meet the needs of its clients. Commercial Banking: The company's Commercial Banking teams are organized geographically and led by experienced regional bankers that have extensive market knowledge along with deep community business relationships. The company offers a broad set of deposit, lending, and cash management services to meet the needs of small business, middle market, and corporate clients in a diverse set of industries throughout the markets it serves. Community Association Banking: The company's HOA & Property Management Banking division focuses exclusively on serving the specialized banking needs of HOA and real estate management companies nationwide. These businesses require a high level of electronic banking services. Deposit products and services required by HOA and property management companies include specialized cash management, payment processing (including lockbox), remote capture, and Automated Clearing House (ACH) payment capabilities. Commerce Escrow: The company's Commerce Escrow division provides a variety of real-property and non-real property escrow services, including the facilitation of Section 1031 exchange transactions. Pacific Premier Trust: The company's Pacific Premier Trust division provides custodial services for clients with alternative assets held in qualified self-directed IRA accounts, including investments in private equity, real estate, notes, cash, and other non-exchange traded assets. The company's Pacific Premier Trust division works with self-directed investors, financial institutions, capital raisers, and financial advisors to make tax-advantaged investments in alternative assets. Consumer Banking: The company focuses predominantly on expanding its commercial banking business to create meaningful, long-term value for its clients, while also offering a relatively narrow set of consumer products and services. Leveraging Technology to Drive and Expand Banking Relationships The company is committed to leveraging technology to expand its suite of banking products and services and to enhance growth initiatives, while remaining mindful and vigilant of the enhanced risks certain technology-enabled activities (such as deposit gathering and electronic funds transfer) may present. Premier 360: The company leverages investments in technology through integrating its proprietary Premier 360 system, a Salesforce enabled platform, throughout the organization. This technology provides enhanced client and data management by optimizing the business development process and accelerating new client acquisition. Pacific Premier API Banking: The company has invested in and developed the Pacific Premier API Banking platform, which connects and integrates cash management treasury functions through its clients' existing financial software platforms. This platform enables greater automation, more efficiencies, and improved workflows, all of which enhance its customer experience. Online and Mobile Banking: The company's online banking platform enhances its clients' ability to efficiently and conveniently manage their accounts and cash management needs. The company offers features, such as mobile check deposit, positive pay dispositioning, wire approval, debit card management, and customized alerts. The company's clients can view both current-day and prior-day balances and activities, transfer funds, review and disposition exceptions, and securely initiate international transactions. Commercial Lending The company's primary lending business continues to focus on small- and medium-sized businesses and corporations through commercial business loans, lines of credit, Small Business Administration (SBA) loans, commercial real estate loans, agribusiness loans, and construction loans. Commercial and Industrial (C&I): The company originates C&I loans secured by various business assets, including inventory, receivables, machinery, and equipment. Loan types include revolving lines of credit, term loans, seasonal loans, and loans secured by liquid collateral, such as cash deposits or marketable securities. Commercial Owner-Occupied Real Estate Lending: The company originates business loans secured by owner-occupied commercial real estate (CRE), such as light industrial buildings, mixed-use commercial properties, and small office locations for professional services located in its primary market areas. These loans are underwritten and analyzed based on the businesses cash flows. Commercial Non-Owner-Occupied Real Estate Lending: The company originates loans that are secured by investor owned CRE, such as retail centers, small office locations, light industrial buildings, and mixed-use commercial properties located in its primary market areas. Multifamily Residential Lending: The company originates loans secured by multifamily residential properties (five units and greater) located in its primary market areas. Construction Lending: The company originates loans for the construction of for-sale 1-4 family homes, multifamily residences, and CRE properties in its market areas. Other Commercial Lending: The company provides SBA, U.S. Department of Agriculture (USDA), and franchise loans nationwide. The company is approved to originate loans under the SBA's Preferred Lenders Program. Franchise loans are made to experienced owner operators of quick service restaurants and include both C&I and Owner-Occupied CRE loans. Retail Banking: The company originates a limited number of consumer loans (generally for existing banking customers), which consist primarily of home equity lines of credit, small balance personal unsecured loans, and savings account secured loans. Loan Portfolio Commercial & Industrial: This portfolio includes loans to small and middle market businesses across many industries predominantly throughout the Western U.S. Commercial Real Estate Owner-Occupied: This portfolio includes loans to businesses located in job centers in a variety of different industries, with emphasis on metro markets and supporting suburbs, with a geography covering California and the Western U.S. Commercial Real Estate Non-Owner-Occupied: The company offers Commercial Real Estate Non-Owner-Occupied. Multifamily: This loan portfolio has consistently produced solid risk-adjusted returns throughout varying economic cycles and these lending relationships consist of seasoned owners of multifamily properties with extensive operating experience. Investment Portfolio As of December 31, 2023, the company's investment portfolio included U.S. Treasury; agency; corporate; and collateralized mortgage obligations. Supervision and Regulation As a bank holding company, the company is subject to regulation and supervision by the Board of Governors of the Federal Reserve System (Federal Reserve). As a California state-chartered commercial bank and member of the Federal Reserve System, the bank is subject to supervision, periodic examination, and regulation by the DFPI and the Federal Reserve. The company is a registered bank holding company under the Bank Holding Company Act of 1956, as amended (BHCA). The company's wholly-owned subsidiary, Pacific Premier Bank, is a California state-chartered commercial bank. The company is a member of the Federal Reserve System and of the Federal Home Loan Bank of San Francisco (FHLB), which is a member bank of the Federal Home Loan Bank System. The company's deposit accounts are insured by the FDIC up to the maximum amount allowable under federal law. The company is subject to examination and regulation by the Federal Reserve and the Federal Reserve Bank of San Francisco (FRB), the California Department of Financial Protection and Innovation (DFPI), the Consumer Financial Protection Bureau (CFPB), and the FDIC. As a California state-chartered commercial bank and member of the Federal Reserve System, the bank is subject to supervision, periodic examination, and regulation by the DFPI and the Federal Reserve. The bank's deposits are insured by the FDIC through the Deposit Insurance Fund (DIF), with federal deposit insurance coverage of $250,000 per depositor for all insured depository institutions (IDIs). As a result of this deposit insurance function, the FDIC also has certain supervisory authority and powers over the bank as well as all other FDIC insured institutions. As a California-chartered commercial bank, the bank is also subject to certain provisions of California law. The company is required to file with the Federal Reserve quarterly and annual reports and such additional information as the Federal Reserve may require pursuant to the BHCA. The Federal Reserve may conduct examinations of bank holding companies and their subsidiaries. The company is also a bank holding company within the meaning of the Financial Code. As such, the company and its subsidiaries are subject to examination by, and may be required to file reports with, the DFPI. The bank is an FDIC insured financial institution whereby the FDIC provides deposit insurance for a certain maximum dollar amount per customer. The bank, as is true for all FDIC insured banks, is subject to deposit insurance assessments as determined by the FDIC. Transactions between a bank and its affiliates are quantitatively and qualitatively restricted under Sections 23A and 23B of the FRA. Section 23A restricts the aggregate amount of covered transactions with any individual affiliate to 10% of the capital and surplus of the financial institution. The aggregate amount of covered transactions with all affiliates is limited to 20% of the institution's capital and surplus. Certain transactions with affiliates are required to be secured by collateral in an amount and of a type described in Section 23A, and the purchase of low quality assets from affiliates are generally prohibited. Section 23B generally provides that certain transactions with affiliates, including loans and asset purchases, must be on terms and under circumstances, including credit standards, that are substantially the same or at least as favorable to the institution as those prevailing at the time for comparable transactions with non-affiliated companies. The Federal Reserve has promulgated Regulation W, which codifies prior interpretations under Sections 23A and 23B of the FRA and provides interpretive guidance with respect to affiliate transactions. Affiliates of a bank include, among other entities, a bank's holding company and companies that are under common control with the bank. The company is considered to be an affiliate of the bank. The bank is subject to the regulatory requirements and reporting related to the Community Reinvestment Act (CRA). Based on its last CRA examination in July 2021, the bank received an outstanding rating. The bank is also subject to certain consumer laws and regulations that are designed to protect consumers in transactions with banks. These laws include, among others: Truth in Lending Act; Truth in Savings Act; Electronic Funds Transfer Act; Expedited Funds Availability Act; Equal Credit Opportunity Act; Fair and Accurate Credit Transactions Act; Fair Housing Act; Fair Credit Reporting Act; Fair Debt Collection Act; Home Mortgage Disclosure Act; Real Estate Settlement Procedures Act; laws regarding unfair and deceptive acts and practices; and usury laws. History Pacific Premier Bancorp, Inc. was founded in 1983. The company was incorporated in 1996 in the state of Delaware.