Pacific Premier Bancorp, Inc. Announces 2012 Earnings (Unaudited)

  Pacific Premier Bancorp, Inc. Announces 2012 Earnings (Unaudited)

Highlights for Q4 2012 included the following:

  *Net income of $3.8 million, or $0.32 per fully diluted share
  *Net Interest Margin of 4.88%
  *Return on Average Equity of 14.07%
  *Return on Average Assets of 1.42%
  *Gross Loans Increase $121.4 Million, or 56% Annualized
  *Nonperforming Assets Decline to 0.38% of Total Assets
  *Fully Diluted Book Value at $9.75 per share

Business Wire

IRVINE, Calif. -- January 23, 2013

Pacific Premier Bancorp, Inc. (NASDAQ: PPBI) (the “Company”), the holding
company of Pacific Premier Bank (the “Bank”), reported net income for the
fourth quarter of 2012 of $3.8 million or $0.32 per share on a diluted basis,
up from $2.6 million or $0.24 per share on a diluted basis for the fourth
quarter of 2011. For the fourth quarter of 2012, our return on average assets
was 1.42% and return on average equity was 14.07%, up from a return on average
assets of 1.08% and a return on average equity of 11.98% for the same
comparable period of 2011.

For the full year 2012, the Company reported net income of $15.8 million or
$1.44 per share on a diluted basis, up from $10.6 million or $0.99 per share
on a diluted basis for 2011. For 2012, our return on average assets was 1.52%
and return on average equity was 16.34%, up from a return on average assets of
1.12% and a return on average equity of 12.91% for 2011.

Steven R. Gardner, President and Chief Executive Officer, commented on the
results, “We completed 2012 with another strong quarter of balance sheet
growth and higher profitability. Our loan growth during the fourth quarter was
driven by strong growth in warehouse lending, commercial and industrial
business loans and commercial real estate lending. Our SBA group is beginning
to show positive trends as they ended the year with a pipeline of $17.7
million, while our entire loan pipeline at year end was $84 million. Much of
our loan production occurred late in the fourth quarter and thus the average
balance outstanding of our loan portfolio grew 16% on an annualized basis
quarter over quarter. We supplemented our organic loan production through the
purchase of a $34 million residential and $4 million CRE loan portfolio during
the current quarter.”

“We started the process of preparing our balance sheet for the closing of our
pending merger with First Associations Bank (FAB), which is expected to occur
in the first quarter of 2013, subject to receipt of approval by FAB’s
shareholders. This process allowed us to further improve the deposit base by
running off higher cost CD's, increasing transaction accounts and dropping our
cost of deposits to 0.51%, a 13 basis point decrease from the end of the third
quarter of 2012. We funded the growth in our loan portfolio with short term
FHLB advances and proceeds from the sale of investment securities. Subject to
the closing of the FAB merger, we will replace these funding sources with
FAB’s low-cost deposit base, which will reduce our loan-to-deposit ratio,
positively impact our cost of funds and continue the enhancement of our
franchise.”

“We ended 2012 with excellent asset quality. Since the end of the second
quarter of 2012, nonperforming assets have declined 75%, resulting in
nonaccrual loans to total loans of 0.22%, delinquent loans to gross loans of
0.09% and nonperforming assets to total assets of 0.38% as of December 31,
2012. As we did with our previous acquisition, by year end we were able to
quickly reduce the amount of delinquent loans and OREO we acquired in the
second quarter of 2012 from our FDIC-assisted acquisition of Palm Desert
National Bank. As a result of our multipronged approach to managing problem
assets, we continue to experience very low credit costs.”

“Looking ahead to 2013, we are very excited about the catalysts in place that
we believe will drive further increases in our earnings power: 1) We are
adding experienced relationship managers that will enable us to continue
taking market share and increase business banking relationships; 2) We have
expanded our commitment levels with a number of mortgage bankers, which should
result in further growth in our warehouse lending business; 3) We are
expanding our ability to serve homeowners associations nationwide, which will
become an important niche market for us after the merger with FAB is closed;
4) We are steadily increasing our production of SBA loans, which should
generate higher levels of noninterest income for us going forward; and 5) We
expect to see a positive impact on our net interest margin as we fully
integrate FAB’s low-cost deposit base and expand its deposit platform.”

“We believe we have all the elements in place to deliver another successful
year in 2013. We have excellent momentum in our organic business development
efforts, and following our recent stock offering, we have a strong capital
position that will enable us to pursue attractive acquisition opportunities.
We look forward to executing on our growth strategy and creating additional
value for both new and existing shareholders,” concluded Mr. Gardner.

Net Interest Income

Net interest income totaled $12.6 million in the fourth quarter of 2012, up
$1.7 million or 15.2% compared to the fourth quarter of 2011. The increase in
net interest income reflected an increase in average interest-earning assets
of $128.0 million in the current quarter to total $1.0 billion and a higher
net interest margin of 4.88% in the current quarter, compared with 4.84% in
the fourth quarter of 2011. The increase in average interest-earning assets
for the period was primarily due to an increase in loans, which were up $144.7
million on average primarily associated with organic loan growth, purchases
and to a lesser extent from our Palm Desert National Bank acquisition from the
FDIC, which at the time of acquisition added $65.3 million in interest-earning
assets at a weighted average rate of 5.61%. The increase in the current
quarter net interest margin of 4 basis points primarily reflected a decrease
in the cost of deposits of 37 basis points, partially offset by the decrease
in our interest-earning asset yield of 33 basis points. The decline in our
interest-earning asset yield was primarily from a lower yield on loans of 64
basis points, partially offset by an improved mix of higher yielding loans
within interest-earning assets. The reduction in deposit costs is primarily
associated with our acquisition of Palm Desert National Bank, which added
$80.9 million in deposits at a weighted average cost of 42 basis points as of
the closing of the transaction, excluding the runoff of $34.1 million in
wholesale certificates of deposit in the month subsequent to the acquisition.

Compared to the third quarter of 2012, net interest income for the fourth
quarter of 2012 increased $767,000 or 6.5%. The increase in net interest
income reflected a 27 basis point increase in net interest margin and higher
average interest-earning assets of $5.7 million. The increase in the net
interest margin is primarily attributable to the following factors: 1) an
increase in interest-earning assets of 18 basis points primarily from an
improved mix of higher yielding loans along with the collection of back
interest on a loan payoff of $143,000 or 6 basis points when annualized and 2)
lower deposit costs of 11 basis points from a decrease in average certificates
of deposit of $47.8 million. Additionally, noninterest bearing deposits on
average increased $52.7 million during the fourth quarter of 2012 as we
eliminated nominal interest paid on approximately $60.7 million of transaction
accounts towards the end of previous quarter and moved them into noninterest
bearing accounts. This change lowered our deposit costs by approximately one
basis point.

For 2012, our net interest income totaled $45.8 million, up $5.2 million or
12.7% from 2011. The increase in net interest income was associated with
higher interest-earning assets, which grew by $98.9 million to $991.9 million,
and a higher net interest margin which increased by 7 basis points to 4.62%.
The increase in average interest-earning assets primarily related to newly
originated loans, purchased loans and loans acquired in the Palm Desert
National acquisition. The increase in net interest margin was predominantly
impacted by a decrease in our deposit and borrowing costs of 36 basis points
that more than offset the decrease in our interest-earning asset yield of 28
basis points.

Provision for Loan Losses

We recorded a $606,000 provision for loan losses during the fourth quarter of
2012, compared with $527,000 recorded in the fourth quarter of 2011. Improved
credit quality metrics and the recent charge-off history within our loan
portfolio were significant factors in estimating the adequacy of our allowance
for loan losses, which was balanced against the loan growth we experienced
during the fourth quarter of 2012. Net loan charge-offs amounted to $270,000
in the fourth quarter of 2012, down $257,000 from $527,000 experienced during
the fourth quarter of 2011.

For 2012, we recorded a provision for loan losses of $751,000 and net loan
charge-offs of $1.3 million. This compares with a provision for loan losses of
$3.3 million and net charge-offs of $3.6 million for 2011.

Noninterest income

Our noninterest income amounted to $3.2 million in the fourth quarter of 2012,
up $2.9 million compared to the fourth quarter of 2011. The increase was
primarily related to the following three areas: 1) net gains of $659,000 from
the sale of $1.8 million of loans in the fourth quarter of 2012, compared to
losses of $1.2 million on the sale of loans in the fourth quarter of 2011; 2)
higher gains by $658,000 from the sale of investment securities available for
sale; and 3) higher other income by $528,000, primarily from the sale of our
corporate offices and associated fixed assets for a net gain of $597,000.

Compared to the third quarter of 2012, noninterest income for the fourth
quarter of 2012 increased $1.3 million or 67.2%. The increase was primarily
attributable to a favorable change in net gain (loss) from sales of loans of
$700,000, which included $456,000 from the sale of $4.8 million of SBA loans
in the fourth quarter, and other income of $427,000 primarily related to the
sale of our corporate offices and associated fixed assets for a net gain of
$597,000, partially offset by $105,000 of income associated with the
resolution of acquired loans in the previous quarter.

For 2012, our noninterest income totaled $12.6 million, compared with $6.5
million for 2011. The increase of $6.1 million or 93.0% in 2012 was primarily
due to a favorable change in net gain (loss) from sale of loans of $4.2
million, a larger bargain purchase pre-tax gain on acquisitions from the FDIC
of $1.2 million and an improvement in other-than-temporary impairment loss on
investment securities of $458,000.

Noninterest Expense

Noninterest expense totaled $9.0 million for the fourth quarter of 2012, up
$2.4 million or 35.7% from the fourth quarter of 2011. The increase primarily
related to increases in compensation and benefits costs of $1.3 million, legal
and audit expense of $463,000, premises and occupancy costs of $228,000, other
expense of $225,000 and data processing and communications costs of $216,000.
The increase in compensation and benefits costs are attributable to an
increased employee count from the Palm Desert National acquisition and added
employees in lending production and loan operations to increase our production
of SBA loans and warehouse facility loans. Within the increase in the legal
and audit expense was $404,000 associated with the pending acquisition of FAB.

Compared to the third quarter of 2012, noninterest expense for the fourth
quarter of 2012 increased $946,000 or 11.8%. The increase was primarily
attributable to a $428,000 increase in expenses related to other real estate
owned (“OREO”) operations, which included $440,000 in losses on sales of OREO
properties that were acquired in connection with the previous FDIC-assisted
acquisitions, other expense of $263,000, and legal and audit expense of
$150,000 primarily associated with the pending acquisition of FAB.

For 2012, noninterest expense totaled $31.9 million, up $5.0 million or 18.4%
from 2011. The increase was primarily related to a $3.1 million increase in
compensation and benefits costs as a result of increased head count and
termination costs from the Palm Desert National acquisition and an expansion
of our lending area to increase loan production; an increase in data
processing and communication costs of $947,000, primarily from running two
core systems and system conversion costs associated with the Palm Desert
National acquisition; an increase in legal and audit costs of $696,000; and an
increase in premises and occupancy costs of $569,000, partially offset by a
decrease in marketing expense of $429,000. Of the total noninterest expense
recorded during 2012, there were one-time costs of $500,000 relating to the
Palm Desert National acquisition and legal and audit expense of $404,000
relating to the pending acquisition of FAB.

Assets and Liabilities

At December 31, 2012, assets totaled $1.2 billion, up $212.7 million or 22.1%
from December 31, 2011. During the fourth quarter of 2012, assets increased
$84.5 million or 7.8%, primarily due to an increase in loans held for
investment of $122.8 million, partially offset by a decrease in investment
securities available for sale of $30.2 million, OREO of $3.3 million and other
assets of $2.6 million.

Investment securities available for sale totaled $84.1 million at December 31,
2012, down $31.6 million or 27.3% from December 31, 2011. During the fourth
quarter of 2012, investment securities decreased by $30.2 million and included
sales of $26.5 million and principal payments of $3.0 million.

Net loans held for investment totaled $974.2 million at December 31, 2012, an
increase of $244.1 million or 33.4% from December 31, 2011. During the fourth
quarter of 2012, net loans held for investment increased $122.5 million or
14.4%. The fourth quarter of 2012 included loan originations of $122.9
million, of which $73.9 million related to our warehouse repurchase facility
loans, loan purchases of $38.2 million and a decrease in undisbursed loan
funds of $23.5 million, partially offset by loan repayments of $49.8 million
and loan sales of $13.8 million. During the fourth quarter of 2012, our
commitments on our warehouse repurchase facility loans increased $78.3 million
to total $245.8 million. Additionally, we experienced an increase in our
utilization rates for these loans from 66.9% at the beginning of the fourth
quarter of 2012 to 80.9% at the end of the fourth quarter 2012. Most of our
loan growth occurred late in the fourth quarter of 2012 which increased
average loans by $33.7 million or 4.0%. At December 31, 2012, the loan to
deposit ratio was 109.0%, up from 89.1% at December 31, 2011 and 96.5% at
September 30, 2012.

Deposits totaled $904.8 million at December 31, 2012, up $75.9 million or 9.2%
from December 31, 2011. The increase from year-end 2011 is predominately
related to the acquisition of Palm Desert National Bank. During the fourth
quarter of 2012, deposits increased $8.9 million or 1.0% due primarily to
increases in interest-bearing transaction accounts of $63.4 million and
noninterest-bearing accounts of $2.2 million, partially offset by a decrease
in retail certificates of deposit of $56.8 million. At December 31, 2011, we
had no brokered deposits. The total end of period cost of deposits at December
31, 2012 decreased to 0.51%, from 0.89% at December 31, 2011 and from 0.64% at
September 30, 2012.

At December 31, 2012, total borrowings amounted to $125.8 million, up $87.0
million or 224.2% from December 31, 2011 and up $40.0 million or 46.6% from
September 30, 2012. The increase for the full year 2012 and the fourth quarter
of 2012 related wholly to FHLB overnight advances taken out primarily to fund
our loan growth. Total borrowings at December 31, 2012 represented 10.7% of
total assets and had a weighted average cost of 1.19%, compared with 4.0% of
total assets and at a weighted average cost of 3.23% at December 31, 2011 and
7.9% of total assets at a weighted average cost of 1.64% at September 30,
2012.

Asset Quality

At December 31, 2012, nonperforming assets totaled $4.5 million or 0.38% of
total assets, down from $7.3 million or 0.76% of total assets at December 31,
2011 and down from $11.8 million or 1.08% of total assets at September 30,
2012. During the fourth quarter of 2012, nonperforming loans decreased $4.1
million to total $2.2 million and OREO decreased $3.3 million to total $2.3
million. The decline in nonperforming loans and OREO was primarily due to
sales that exceeded any additions to such categories. At December 31, 2012,
OREO consisted of four land properties.

Our allowance for loan losses at December 31, 2012 was $8.0 million, down from
$8.5 million at December 31, 2011, but up from $7.7 million at September 30,
2012. The allowance for loan losses as a percent of nonaccrual loans was
362.4% at December 31, 2012, up from 139.9% at December 31, 2011 and 121.9% at
September 30, 2012. The increase in allowance for loan losses as a percent of
nonaccrual loans at December 31, 2012, compared to December 31, 2011 and
September 30, 2012 was primarily due to the decrease in nonaccrual loans. At
December 31, 2012, the ratio of allowance for loan losses to total gross loans
was 0.81%, down from 1.2% at December 31, 2011 and 0.89% at September 30,
2012.

Capital Ratios

On December 11, 2012, the Company completed an underwritten public offering of
3,300,000 shares of its common stock at a public offering price of $10.00 per
share, and on January 9, 2013, the Company issued an additional 495,000 shares
of its common stock at a public offering price of $10.00 per share in
connection with the underwriters’ exercise of the over-allotment option
granted to them as part of the offering. The net proceeds from the offering,
including the underwriters’ exercise of the over-allotment option, after
deducting underwriting discounts and commissions and estimated offering
expenses were approximately $35.6 million. During December of 2012, the
Company injected $25.0 million of the proceeds from the offering into the
Bank, which enhanced the Bank’s regulatory capital ratios.

At December 31, 2012, our ratio of tangible common equity to total assets was
11.26%, with a basic book value per share of $9.85 and diluted book value per
share of $9.75.

At December 31, 2012, the Bank exceeded all regulatory capital requirements
with a ratio for tier 1 leverage capital of 12.07%, tier 1 risked-based
capital of 12.99% and total risk-based capital of 13.79%. These capital ratios
exceeded the “well capitalized” standards defined by the federal banking
regulators of 5.00% for tier 1 leverage capital, 6.00% for tier 1 risked-based
capital and 10.00%, for total risk-based capital. At December 31, 2012, the
Company had a ratio for tier 1 leverage capital of 12.72%, tier 1 risked-based
capital of 13.61% and total risk-based capital of 14.41%.

Conference Call and Webcast

The Company will host a conference call at 9:00 a.m. PT / 12:00 p.m. ET on
January 23, 2013 to discuss its financial results. Analysts and investors may
participate in the question-and-answer session. The conference call will be
webcast live on the Investor Relations section of the Company’s website
www.ppbi.com and an archived version of the webcast will be available in the
same location shortly after the live call has ended. The conference call can
be accessed by telephone at (866) 225-8754, conference ID 4591658.
Additionally a telephone replay will be made available through January 30,
2013 at (800) 406-7325, conference ID 4591658.

Annual Meeting of Shareholders

Pacific Premier Bancorp, Inc. will hold its annual meeting on Wednesday, May
29, 2013 at 9:00 a.m. PT at its corporate headquarters in Irvine, California.
The record date for shareholders to vote their proxy for the annual meeting
will be April 1, 2013.

The Company owns all of the capital stock of the Bank. The Bank provides
business and consumer banking products to its customers through our ten
full-service depository branches in Southern California located in the cities
of Huntington Beach, Irvine, Los Alamitos, Newport Beach, Palm Desert, Palm
Springs, San Bernardino and Seal Beach.

FORWARD-LOOKING COMMENTS

The statements contained herein that are not historical facts are
forward-looking statements based on management's current expectations and
beliefs concerning future developments and their potential effects on the
Company. Such statements involve inherent risks and uncertainties, many of
which are difficult to predict and are generally beyond the control of the
Company. There can be no assurance that future developments affecting the
Company will be the same as those anticipated by management. The Company
cautions readers that a number of important factors could cause actual results
to differ materially from those expressed in, or implied or projected by, such
forward-looking statements. These risks and uncertainties include, but are not
limited to, the following: the strength of the United States economy in
general and the strength of the local economies in which we conduct
operations; the effects of, and changes in, trade, monetary and fiscal
policies and laws, including interest rate policies of the Board of Governors
of the Federal Reserve System; inflation, interest rate, market and monetary
fluctuations; the timely development of competitive new products and services
and the acceptance of these products and services by new and existing
customers; the willingness of users to substitute competitors’ products and
services for the Company’s products and services; the impact of changes in
financial services policies, laws and regulations (including the Dodd-Frank
Wall Street Reform and Consumer Protection Act) and of governmental efforts to
restructure the U.S. financial regulatory system; technological changes; the
effect of acquisitions that the Company may make, if any, including, without
limitation, the failure to achieve the expected revenue growth and/or expense
savings from its acquisitions such as First Associations Bank; changes in the
level of the Company’s nonperforming assets and charge-offs; oversupply of
inventory and continued deterioration in values of California real estate,
both residential and commercial; the effect of changes in accounting policies
and practices, as may be adopted from time-to-time by bank regulatory
agencies, the Securities and Exchange Commission (“SEC”), the Public Company
Accounting Oversight Board, the Financial Accounting Standards Board or other
accounting standards setters; possible other-than-temporary impairment of
securities held by us; changes in consumer spending, borrowing and savings
habits; the effects of the Company’s lack of a diversified loan portfolio,
including the risks of geographic and industry concentrations; ability to
attract deposits and other sources of liquidity; changes in the financial
performance and/or condition of our borrowers; changes in the competitive
environment among financial and bank holding companies and other financial
service providers; unanticipated regulatory or judicial proceedings; and the
Company’s ability to manage the risks involved in the foregoing. Additional
factors that could cause actual results to differ materially from those
expressed in the forward-looking statements are discussed in the 2011 Annual
Report on Form 10-K of Pacific Premier Bancorp, Inc. filed with the SEC and
available at the SEC’s Internet site (http://www.sec.gov).

The Company specifically disclaims any obligation to update any factors or to
publicly announce the result of revisions to any of the forward-looking
statements included herein to reflect future events or developments.

                  
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(dollars in thousands, except share data)
                                                         
                      December 31,          September 30,         December 31,
ASSETS                2012                  2012                  2011
                      (Unaudited)           (Unaudited)           (Audited)
Cash and due          $ 59,325              $ 58,216              $  60,207
from banks
Federal funds          27                  27                   28      
sold
Cash and cash           59,352                58,243                 60,235
equivalents
Investment
securities              84,066                114,250                115,645
available for
sale
FHLB
stock/Federal           11,247                12,191                 12,475
Reserve Bank
stock, at cost
Loans held for          3,681                 4,728                  -
sale, net
Loans held for          982,207               859,373                738,589
investment
Allowance for          (7,994    )          (7,658    )           (8,522  )
loan losses
Loans held for          974,213               851,715                730,067
investment, net
Accrued
interest                4,126                 3,933                  3,885
receivable
Other real              2,258                 5,521                  1,231
estate owned
Premises and            8,575                 10,067                 9,819
equipment
Deferred income         5,692                 5,515                  8,998
taxes
Bank owned life         13,485                13,362                 12,977
insurance
Intangible              2,626                 2,703                  2,069
assets
Other assets           4,471               7,108                3,727   
TOTAL ASSETS          $ 1,173,792          $ 1,089,336          $  961,128 
                                                                  
LIABILITIES AND
STOCKHOLDERS’
EQUITY
LIABILITIES:
Deposit
accounts:
Noninterest           $ 213,636             $ 211,410             $  112,313
bearing
Interest
bearing:
Transaction             329,925               266,478                287,876
accounts
Retail
certificates of        361,207             417,982              428,688 
deposit
Total deposits          904,768               895,870                828,877
FHLB advances
and other               115,500               75,500                 28,500
borrowings
Subordinated            10,310                10,310                 10,310
debentures
Accrued
expenses and           8,697               7,770                6,664   
other
liabilities
TOTAL                  1,039,275           989,450              874,351 
LIABILITIES
                                                                  
STOCKHOLDERS’
EQUITY:
Preferred
stock, $.01 par
value;
1,000,000               -                     -                      -
shares
authorized; no
shares
outstanding
Common stock,
$.01 par value;
25,000,000
shares
authorized;
13,661,648
shares at               137                   103                    103
December 31,
2012 and
10,337,626
shares at
December 31,
2011, issued
and outstanding
Additional              107,453               76,414                 76,310
paid-in capital
Retained                25,822                22,011                 10,046
earnings
Accumulated
other
comprehensive
income, net of
tax of $773 at         1,105               1,358                318     
December 31,
2012, and $221
at December 31,
2011
TOTAL
STOCKHOLDERS’          134,517             99,886               86,777  
EQUITY
                                                                  
TOTAL
LIABILITIES AND       $ 1,173,792          $ 1,089,336          $  961,128 
STOCKHOLDERS’
EQUITY
                                                                  
                                                                  

                       
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share data)
                                                                                              
                           Three Months Ended                                       Twelve Months Ended
                           December 31,       September 30,      December 31,       December 31,       December 31,
                           2012               2012               2011               2012               2011
INTEREST INCOME            (Unaudited)        (Unaudited)        (Unaudited)        (Unaudited)        (Audited)
Loans                      $ 13,477           $ 12,847           $ 12,391           $ 49,659           $ 46,369
Investment
securities and other        682              779              746              3,288            3,856      
interest-earning
assets
Total interest              14,159           13,626           13,137           52,947           50,225     
income
                                                                                                       
INTEREST EXPENSE
Interest-bearing
deposits:
Interest on                  243                280                370                1,075              1,548
transaction accounts
Interest on
certificates of             963              1,164            1,489            4,778            6,740      
deposit
Total
interest-bearing             1,206              1,444              1,859              5,853              8,288
deposits
FHLB advances and            253                247                238                970                998
other borrowings
Subordinated                79               81               80               326              310        
debentures
Total interest              1,538            1,772            2,177            7,149            9,596      
expense
NET INTEREST INCOME
BEFORE PROVISION FOR         12,621             11,854             10,960             45,798             40,629
LOAN LOSSES
PROVISION FOR LOAN          606              145              527              751              3,255      
LOSSES
NET INTEREST INCOME
AFTER PROVISION FOR         12,015           11,709           10,433           45,047           37,374     
LOAN LOSSES
                                                                                                       
NONINTEREST INCOME
Loan servicing fees          326                224                359                941                1,060
Deposit fees                 481                486                554                1,940              2,195
Net gain (loss) from         659                (41        )       (1,160     )       628                (3,605     )
sales of loans
Net gain from sales
of investment                922                857                264                1,953              1,589
securities
Other-than-temporary
impairment loss on           (41        )       (36        )       (79        )       (159       )       (617       )
investment
securities, net
Gain on FDIC                 -                  -                  -                  5,340              4,189
transaction
Other income                847              420              319              1,929            1,702      
Total noninterest           3,194            1,910            257              12,572           6,513      
income
                                                                                                       
NONINTEREST EXPENSE
Compensation and             4,447              4,367              3,172              16,281             13,205
benefits
Premises and                 1,148              1,063              920                4,070              3,501
occupancy
Data processing and          600                582                384                2,366              1,419
communications
Other real estate
owned operations,            672                244                510                1,653              1,497
net
FDIC insurance               172                165                156                638                809
premiums
Legal and audit              623                473                160                2,134              1,438
Marketing expense            154                225                351                858                1,287
Office and postage           218                232                245                830                850
expense
Other expense               943              680              718              3,024            2,898      
Total noninterest           8,977            8,031            6,616            31,854           26,904     
expense
INCOME BEFORE INCOME         6,232              5,588              4,074              25,765             16,983
TAXES
INCOME TAX                  2,421            2,126            1,519            9,989            6,411      
NET INCOME                 $ 3,811           $ 3,462           $ 2,555           $ 15,776          $ 10,572     
                                                                                                       
EARNINGS PER SHARE
Basic                      $ 0.33             $ 0.34             $ 0.25             $ 1.49             $ 1.05
Diluted                    $ 0.32             $ 0.32             $ 0.24             $ 1.44             $ 0.99
                                                                                                       
WEIGHTED AVERAGE
SHARES OUTSTANDING
Basic                        11,282,433         10,330,814         10,149,148         10,571,073         10,092,181
Diluted                      11,801,197         10,832,934         10,520,919         10,984,034         10,630,720
                                                                                                       
                                                                                                       

                
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
STATISTICAL INFORMATION
(dollars in thousands)
                                                                            
                    For the Three Months Ended                      For the Twelve Months Ended
                    December        September       December        December 31,     December 31,
                    31, 2012        30, 2012        31, 2011        2012             2011
Profitability
and
Productivity
Net interest          4.88    %       4.61    %       4.84    %       4.62     %       4.55     %
margin
Noninterest
expense to            3.33            3.02            2.79            3.07             2.85
average total
assets
Efficiency            58.35           60.14           50.41           59.86            56.50
ratio(1)
Return on
average               1.42            1.30            1.08            1.52             1.12
assets
Return on
average               14.07           14.19           11.98           16.34            12.91
equity
                                                                                     
Asset and
liability
activity
Loans
originated          $ 161,110       $ 132,509       $ 50,168        $ 503,693        $ 335,635
and purchased
Repayments            (49,797 )       (42,597 )       (30,313 )       (184,580 )       (100,671 )
Loans sold            (13,827 )       (13,806 )       (15,309 )       (28,217  )       (42,201  )
Increase in           121,451         66,381          4,115           247,827          174,529
loans, net
Increase in           84,456          24,301          32,626          212,664          134,312
assets
Increase
(decrease) in         8,898           (17,321 )       31,499          75,891           169,637
deposits
Increase
(decrease) in         40,000          47,000          -               87,000           (40,000  )
borrowings
                                                                                     

        Efficiency ratio excludes other real estate operations, net; gains and
(1)   losses from sales of loans and investment securities; and gain on FDIC
        transaction.
        
        

                      
                          Average Balance Sheet
                          Three Months Ended                        Three Months Ended                        Three Months Ended
                          December 31, 2012                           September 30, 2012                          December 31, 2011
                          Average                  Average        Average                  Average        Average                Average
                          Balance       Interest   Yield/Cost     Balance       Interest   Yield/Cost     Balance     Interest   Yield/Cost
Assets                    (dollars in thousands)
Interest-earning
assets:
Cash and cash             $ 41,867        $ 14         0.13    %      $ 40,459        $ 17         0.17    %      $ 60,040      $ 27         0.18    %
equivalents
Federal funds sold          27              -          0.00    %        27              -          0.00    %        28            -          0.00    %
Investment                  120,787         668        2.21    %        150,198         762        2.03    %        119,328       719        2.41    %
securities
Loans receivable,          870,782      13,477   6.19    %       837,070      12,847   6.14    %       726,087    12,391   6.83    %
net(1)
Total
interest-earning            1,033,463       14,159     5.48    %        1,027,754       13,626     5.30    %        905,483       13,137     5.81    %
assets
Noninterest-earning         43,352                                      34,379                                      42,651
assets
Total assets              $ 1,076,815                                 $ 1,062,133                                 $ 948,134
Liabilities and
Equity
Deposit accounts:
Noninterest-bearing       $ 217,436       $ -          0.00    %      $ 164,777       $ -          0.00    %      $ 112,152     $ -          0.00    %
Interest-bearing:
Transaction                 305,364         243        0.32    %        313,673         280        0.36    %        289,151       370        0.51    %
accounts
Retail certificates         378,068         963        1.01    %        425,879         1,164      1.09    %        413,864       1,488      1.43    %
of deposit
Wholesale
certificates of            -            -        0.00    %       -            -        0.00    %       939        1        0.42    %
deposit
Total deposits              900,868         1,206      0.53    %        904,329         1,444      0.64    %        816,106       1,859      0.90    %
FHLB advances and           50,576          253        1.99    %        42,690          247        2.30    %        28,652        238        3.30    %
other borrowings
Subordinated               10,310       79       3.05    %       10,310       81       3.13    %       10,310     80       3.08    %
debentures
Total borrowings           60,886       332      2.17    %       53,000       328      2.46    %       38,962     318      3.24    %
Total deposits and          961,754         1,538      0.64    %        957,329         1,772      0.74    %        855,068       2,177      1.01    %
borrowings
Other liabilities          6,725                                      7,235                                      7,779
Total liabilities           968,479                                     964,564                                     862,847
Stockholders'              108,336                                    97,569                                     85,287
equity
Total liabilities         $ 1,076,815                                 $ 1,062,133                                 $ 948,134
and equity
Net interest income                       $ 12,621                                    $ 11,854                                  $ 10,960
Net interest rate                                      4.84    %                                   4.56    %                                 4.80    %
spread(2)
Net interest                                           4.88    %                                   4.61    %                                 4.84    %
margin(3)
Ratio of
interest-earning                                       107.46  %                                   107.36  %                                 105.90  %
assets to deposits
and borrowings


        Average balance includes loans held for sale and nonperforming loans
(1)   and is net of deferred loan origination fees, unamortized discounts
        and premiums, and allowance for loan losses.
(2)     Represents the difference between the yield on interest-earning assets
        and the cost of interest-bearing liabilities.
(3)     Represents net interest income divided by average interest-earning
        assets.
        
        

                      
                          Average Balance Sheet
                          Twelve Months Ended                       Twelve Months Ended
                          December 31, 2012                           December 31, 2011
                          Average                  Average        Average                Average
                          Balance       Interest   Yield/Cost     Balance     Interest   Yield/Cost
Assets                    (dollars in thousands)
Interest-earning
assets:
Cash and cash             $ 63,485        $ 110        0.17    %      $ 61,014      $ 121        0.20    %
equivalents
Federal funds sold          27              -          0.00    %        6,821         5          0.07    %
Investment                  142,534         3,178      2.23    %        139,770       3,730      2.67    %
securities
Loans receivable,          785,880      49,659   6.32    %       685,434    46,369   6.76    %
net(1)
Total
interest-earning            991,926         52,947     5.34    %        893,039       50,225     5.62    %
assets
Noninterest-earning         44,203                                      49,340
assets
Total assets              $ 1,036,129                                 $ 942,379
Liabilities and
Equity
Deposit accounts:
Noninterest-bearing       $ 160,851       $ -          0.00    %      $ 107,120     $ -          0.00    %
Interest-bearing:
Transaction                 309,467         1,075      0.35    %        283,786       1,548      0.55    %
accounts
Retail certificates         410,895         4,776      1.16    %        408,720       6,704      1.64    %
of deposit
Wholesale
certificates of            547          2        0.37    %       7,525      36       0.48    %
deposit
Total deposits              881,760         5,853      0.66    %        807,151       8,288      1.03    %
Other borrowings            37,654          970        2.58    %        35,130        998        2.84    %
Subordinated               10,310       326      3.16    %       10,310     310      3.01    %
debentures
Total borrowings           47,964       1,296    2.70    %       45,440     1,308    2.88    %
Total deposits and          929,724         7,149      0.77    %        852,591       9,596      1.13    %
borrowings
Other liabilities          9,848                                      7,902
Total liabilities           939,572                                     860,493
Stockholders'              96,557                                     81,886
equity
Total liabilities         $ 1,036,129                                 $ 942,379
and equity
Net interest income                       $ 45,798                                  $ 40,629
Net interest rate                                      4.57    %                                 4.49    %
spread(2)
Net interest                                           4.62    %                                 4.55    %
margin(3)
Ratio of
interest-earning                                       106.69  %                                 104.74  %
assets to deposits
and borrowings


        Average balance includes loans held for sale and nonperforming loans
(1)   and is net of deferred loan origination fees, unamortized discounts
        and premiums, and allowance for loan losses.
(2)     Represents the difference between the yield on interest-earning assets
        and the cost of interest-bearing liabilities.
(3)     Represents net interest income divided by average interest-earning
        assets.
        
        


PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
STATISTICAL INFORMATION
                                                      
                        December 31,         September            December 31,
                        2012                 30, 2012             2011
Pacific Premier
Bank Capital
Ratios
Tier 1 leverage            12.07  %             9.48   %             9.44   %
ratio
Tier 1 risk-based          12.99  %             11.04  %             11.68  %
capital ratio
Total risk-based           13.79  %             11.88  %             12.81  %
capital ratio
                                                                  
Pacific Premier
Bancorp, Inc.
Capital Ratios
Tier 1 leverage            12.72  %             9.58   %             9.50   %
ratio
Tier 1 risk-based          13.61  %             11.09  %             11.69  %
capital ratio
Total risk-based           14.41  %             11.93  %             12.80  %
capital ratio
Tangible common            11.26  %             8.94   %             8.83   %
equity ratio(1)
                                                                  
Share Data
Book value per          $  9.85              $  9.66              $  8.39
share (Basic)
Book value per             9.75                 9.53                 8.34
share (Diluted)
Tangible book
value per                  9.65                 9.40                 8.19
share(1)
Closing stock              10.24                9.54                 6.34
price
                                                                  

        Tangible common equity to tangible assets (the "tangible common equity
        ratio") and tangible book value per share are non-GAAP financial
        measures derived from GAAP-based amounts. We calculate the tangible
        common equity ratio by excluding the balance of intangible assets from
        common shareholders' equity and dividing by tangible assets. We
        calculate tangible book value per share by dividing tangible common
        equity by common shares outstanding, as compared to book value per
        basic share, which we calculate by dividing common shareholders'
        equity by basic shares outstanding. We believe that this information
        is consistent with the treatment by bank regulatory agencies, which
(1)   exclude intangible assets from the calculation of risk-based capital
        ratios. Accordingly, we believe that these non-GAAP financial measures
        provide information that is important to investors and that is useful
        in understanding our capital position and ratios. However, these
        non-GAAP financial measures are supplemental and are not a substitute
        for an analysis based on GAAP measures. As other companies may use
        different calculations for these measures, this presentation may not
        be comparable to other similarly titled measures reported by other
        companies. A reconciliation of the non-GAAP measures of tangible
        common equity and tangible book value per share to the GAAP measures
        of common stockholders’ equity and book value per share is set forth
        below.
        
        


GAAP Reconciliations

PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
STATISTICAL INFORMATION
(dollars in thousands, except per share data)
                                                       
                     December 31,            September 30,         December
                     2012                    2012                  31, 2011
                                                                   
Total
shareholders'        $  134,517              $ 99,886              $ 86,777
equity
Less:
Intangible             2,626                2,703               2,069   
assets
Tangible             $  131,891             $ 97,183             $ 84,708  
common equity
                                                                   
Book value per       $  9.85                 $ 9.66                $ 8.39
share (Basic)
Less:
Intangible             (0.19      )          (0.26     )          (0.20   )
book value per
share
Tangible book
value per            $  9.65                $ 9.40               $ 8.19    
share
                                                                   
Total assets         $  1,173,792            $ 1,089,336           $ 961,128
Less:
Intangible             2,626                2,703               2,069   
assets
Tangible             $  1,171,166           $ 1,086,633          $ 959,059 
assets
                                                                   
Tangible
common equity           11.26      %           8.94      %           8.83    %
ratio
                                                                   
                                                                   

                       
PACIFIC PREMIER BANCORP, INC. AND SUBSIDIARIES
STATISTICAL INFORMATION
(dollars in thousands)
                                                          
                           December            September           December
                           31, 2012            30, 2012            31, 2011
                                                                   
Loan Portfolio
Real estate loans:
Multi-family               $ 156,424           $ 173,484           $ 193,830
Commercial non-owner         253,409             262,046             164,341
occupied
One-to-four                  97,463              62,771              60,027
family(1)
Construction                 -                   308                 -
Land                         8,774               11,005              6,438
Business loans:
Commercial owner             150,934             148,139             152,299
occupied(2)
Commercial and               115,354             88,105              86,684
industrial
Warehouse facilities         195,761             112,053             67,518
SBA                          6,882               4,736               4,727
Other loans                 1,193             2,191             3,390   
Total gross loans(3)         986,194             864,838             739,254
Less loans held for         3,681             4,728             -       
sale, net
Total gross loans            982,513             860,110             739,254
held for investment
Less:
Deferred loan
origination                  (306    )           (737    )           (665    )
costs/(fees) and
premiums/(discounts)
Allowance for loan          (7,994  )          (7,658  )          (8,522  )
losses
Loans held for             $ 974,213          $ 851,715          $ 730,067 
investment, net
                                                                   
Asset Quality
Nonaccrual loans           $ 2,206             $ 6,280             $ 6,093
Other real estate           2,258             5,521             1,231   
owned
Nonperforming assets        4,464             11,801            7,324   
Allowance for loan           7,994               7,658               8,522
losses
Allowance for loan
losses as a percent          362.38  %           121.94  %           139.87  %
of total
nonperforming loans
Nonperforming loans
as a percent of              0.22                0.73                0.82
gross loans
Nonperforming assets
as a percent of              0.38                1.08                0.76
total assets
Net loan charge-offs
for the quarter            $ 270               $ 145               $ 527
ended
Net loan charge-offs         1,279               -                   3,612
for the year ended
Net loan charge-offs
for quarter to               0.12    %           0.07    %           0.29    %
average total loans,
net
Allowance for loan
losses to gross              0.81                0.89                1.15
loans
                                                                   
Delinquent Loans:
30-59 days                 $ 106               $ 2,565             $ 699
60-89 days                   303                 164                 731
90+ days(4)                 482               4,154             4,260   
Total delinquency          $ 891              $ 6,883            $ 5,690   
Delinquency as a %           0.09    %           0.80    %           0.77    %
of total gross loans
                                                                   

(1)   Includes second trust deeds.
(2)     Majority secured by real estate.
        Total gross loans for December 31, 2012 is net of the mark-to-market
        discounts of $3.0 million for loans acquired in connection with the
(3)     Company’s acquisition of Canyon National Bank and of $5.8 million for
        loans acquired in connection with the Company’s acquisition of Palm
        Desert National Bank.
(4)     All 90 day or greater delinquencies are on nonaccrual status and
        reported as part of nonperforming assets.

Contact:

Pacific Premier Bancorp, Inc.
Steven R. Gardner
President/CEO
714-431-4000
or
Kent J. Smith
Executive Vice President/CFO
714-431-4000
 
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