Earnings call transcript Q4 2022

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Operator

Good morning, and welcome to the Pacific Premier Bancorp Fourth Quarter 2022 Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Steve Gardner. ahead. go Please

Steve Gardner

Good today. MJ. I you appreciate Thank morning, us joining you, everyone.

As our we the aware, you all are released of earlier fourth XXXX earnings this morning. quarter for report

with published updated our also performance. and have We financial investor presentation, disclosures additional an on information

you've we you our so to a copy already, to Relations website download done of not visit If encourage Investor the presentation.

to a CFO call today, on results, of of items call related some will details I'll the our to Nicolas, review through our our walk of our Ron terms and few open In the then questions. also performance. up notable financial we'll the

read that, our statement. note forward-looking include to investor presentation, the a carefully Safe comments. I I of that release statement each relative earnings Harbor encourage and to you

financial quarterly another We while $XXX.X revenue was to while $X.XX drive quarter conservative approach sheet solid $XX.X of to of our value. million, earnings long-term prior consistent the our shareholder income delivered million, per the level a total of managing share record with increased maintaining balance from to net quarter. prior of quarter and a performance, generated We

strengthened. We generated realized common return book all our year the and ratio of X.XX%, net an TCE pre-provision of tangible further $XX.XX Tangible grew regulatory average while value of and in nearly XX%. share X.X% we ended revenue equity per capital on to a share, increase per with ratios a

approach financial sheet performance as several client well generate to a years, strong deep over strategic relationships attributable management. proactive ability Our built the and balance our environment have to in challenging is we to as

high the our as that outstanding optionality of day positively liquidity communities with year. areas capital, to do Premier will to serve. of and XXXX thank want which and every I move organization, the a every Pacific with we number us of enter my We they flexibility through clients, provide we and the levels colleagues in the for work one impact

Many what fourth the quarter were of with the the similar in observed quarter. we trends of third

interest our production we maintained rising this to rates, have to disciplined deposit of approach a During period and pricing. loan

innovative lower level saw loans ongoing particularly interest prudent By treasury we successfully We connection estate and of to reduction the leveraging, and real our platforms, in demand light economic a relationships. developing solutions our the of are slight commercial loan both of new technology the prior the in with uncertainty. rates, higher quarter banking commercial in maintain total management underwriting multifamily, bankers from areas a standards due in robust and

nearly which production of quarter, half to the business-related franchise. to loan fourth our was ability loans, add the banking In reflects quality our relationships

be XX continues increased Our quarter to basis quarter. new yield on prior attractive loan fourth loan points the average production the over commitments as

our disciplined strength deposits, of basis we of in a the pricing Although, cost decline points. core in relationships experienced with a resulted core relatively XX deposits low coupled client of

another Our real of which result commercial million, business $XXX.X commercial outflows by declining and decreasing of exchange escrow a estate deposit experienced is transactions. quarter

some as excess clients off well seen cash utilizing or to down loans, mix deposit have pay we pay as shift. Additionally,

in varying kept betas deposit quarter, relatively the XXXX, in which range. deposits Ron our During for mid-XX% broker which ratio in low actions we of will the added resulted detail. These time maturities, discuss loan-to-deposit more

and to in benefit periods. offering we marketing on the last growth number products a services Beginning executing are we existing efforts in clients to and will new client our began expand of new expect the future fourth to quarter teams acquisitions, and of enhance year, which initiatives

remains Our asset quality solid.

updates collateral financial credits. always We managing informs and our performance, individual on clients' proactive teams monitoring. As and management liquidity to our frequent in terms credit which are of values, portfolio approach receive our

credits, few not we did XX in obligations. ability nonperforming totaled seeing although their overall basis our service borrowers' at an points flows their Our of year-end. to cash a some or are And we assets migration degradation see

to the Ron a turn call more few I'll results. that, to With fourth details provide over quarter on financial our

Ron Nicolas

and Steve morning. Thanks good

my the a For linked-quarter are majority remarks basis. of on comparison purposes,

the $XX.X higher million, to highlights. Let's financial by Fourth lower quarter quarter's and expense. earnings with revenues start increased slightly operating driven

As a XX.X% quarter percentage the ratio XX.X% $X.X efficiency result, net from pre-provision to improved and of from X.XX%. as revenue X.XX% of million rose million, an from a assets to totaled $XXX.X average our prior our increase and

equity assets and metrics return to return Our XX.XX%, solid as common increased and X.XX% average were average on tangible respectively.

closer of assets income higher earning yields activity. Non-interest statement. swap income increased by quarter. partially by and $X.X offset million, primarily benefit fees of look to as higher the the cost a at result were income lower The of Taking accretion prior million a prepayment and additional and driven interest higher on funds income loan-related to compared $XXX.X decreased yields

year-end. well On an was at a basis at basis cost funding the our deposit side, XX in Average million. deposits spot at in costs deposit points, points, of XX total controlled core came points broker XX rate of reflecting increase basis with $XXX

beta On total cumulative was year deposit our a basis, XX%. period-end full

supported quarter was third the margin Our quarter. fourth interest to the net low-cost flat deposits which of X.XX%,

loan basis rose floating XX the yields to points reported, rate swaps. to of As inclusive X.XX% fixed

prepayment to lower Our attributable quarter. third predominantly six decline compared with margin to the core the X.XX% net points interest activity narrowed to basis being

mostly from increases prior Non-interest due income net principally gain loan in by from offset quarter decrease in driven partially income $XXX,XXX increased were a increase $XXX,XXX by other recoveries. a the sales. loan to $XXX,XXX These

in earlier, fee to attributable real the we escrow and market. estate revenues the also business, transaction saw commercial trust exchange decrease lower slightly business and lower activity escrow is in the the in lines. revenue In as We exchange fee our noted and

annual trust tax in for the first increase service for an quarter anticipate income also We fees.

XXXX, any to a for As range excluding result, first the million, be of $XX total sales. to in million non-interest our of quarter the $XX we security expect income

lower which to benefits variable employees. as $X.X rates primarily as Commensurate reduced levels, $X.X interest and to decreased anticipated deposit from due higher million well expense $XX.X comp, in the prior with reflecting Non-interest performance-based to decrease X,XXX million expense increased decreased as $X quarter. compensation million million, a staffing

to we taxes $XXX million first as our seasonal quarter, approximate increases at non-interest deposit of to expense expectations for and in expense, items, the anticipate well as such as annual staff million the payroll timing Looking costs, due to increases. certain $XXX insurance FDIC our merit

portfolio. Our unfunded provision for and million prior compared to credit the of million changes increased quarter's by asset the size, losses composition, the of impacted $X.X overall quality $X.X loan commitments to

as While and we the systemic higher interest have deterioration inflationary chains, are asset our borrowers we meaningful monitoring in a impacting our quality, seen not supply pressures such rates. closely issues

sheet. in driven million, decline loan by loans of We Turning fundings. to a slight the $XXX lower balance saw

Given slower the payoffs. the prepayments rates, continued we higher saw interest also trend of and

$XXX the mitigate provided costs. businesses continue year deposit business million represented mostly retail escrow and cyclicality well flows, our ended we as a added and exchange liquidity to decrease additional attributable in linked-quarter as deposits in help which To billion, $XXX million million well defend Deposits interest the CDs, deposit of of to we $XXX another as commercial rate broker as which of as consumer and lower the term at $XX.X both deposits protection.

during slight reduction the not did securities in We securities or saw we any sell purchase a portfolio, fourth as quarter. our

X.XX%. Our overall securities yield portfolio increased to

$XX.X XX. mark-to-market fair benefit with to the an the of Additionally, we incremental reduction loss September value on million available-for-sale realized compared portfolio

XX equity common points increased X.XX%. to tangible basis Our

risk-based risk-based, Tier other X Additionally, total ratios increasing strengthened with all leverage Tier capital ratios September risk-based further our this X meaningfully XX. we quarter from and capital

And standpoint, X.XX% loans delinquent finally and from quality non-performing respectively. totaled as asset an both X.XX% remains stable quality asset assets and

they remain XX, September from increase did relatively assets classified Although low.

increased Our any allowance for flat loss of in uncertain finished would economic see our X.XX%. coverage basis loss not coverage acquired our fair a to absorption, X.XX%. on potential was discount and an anticipate downturn the ratio which value increase terms loans environment decreases in the and ratio at credit acquisition And X through our effectively includes materializes. if total could the points We quarter given dollars

With the that Steve. will back I call turn to

Steve Gardner

Great. with outlook. up our Thanks, comments Ron. I'll about a few wrap

management reserves. approach. managed enabled results our ample effectively This prudent conservative maintaining shareholders We consistently a a through deliver and remain and to strong has cycles company growth this for levels strong our us manner, in of have with balancing capital, economic the and liquidity variety will always of risk manage while financial

it's economic impact evolve clients' will environment to our project this and to point, on its the difficult forecast, how businesses. At

For we are targeted and levels, production the strong near-term, positioned coming noted, enhance pressure well initiatives during on our deposit periods. development expect business will our in costs number likely deposit of mitigate loan of liquidity will But those the quarter, remain. on that teams some as a to given previously our began executing we fourth And pressures.

business innovative us development investing technology growth. not to Our We to change. both will while efficiencies enhance and expense employees disciplined profitable believe in generating approach position platforms and long-term our history activities of management

proactive we credit strong management, has approach grown to credit a consistently metrics. we've have achieve As company, the us risk which to maintained helped

of Given our navigate capital our positioned remain we period we deliver sheet believe this results-oriented uncertainty will strong culture, the strength strength shareholders. from and combined value economic position position with of to and balance of a long-term for our

would to call please prepared for the open our concludes That questions. up any be remarks and happy we answer MJ, questions.

Operator

Steve. you, Thank

Today's will [Operator Please James. session. question-and-answer Raymond from question ahead. now Instructions] Feaster the go first with begin comes We David

David Feaster

Hi. Good everybody. morning,

Steve Gardner

David. morning, Good

Ron Nicolas

morning. Good

David Feaster

or of more -- where the we're Would want do whether off forward. near-term? some out the some least about at you funding could the I guess, and kind in deposits? more think of nearing and are on you cash do of borrowings price-sensitive we level like And deposits think stability going business. the funding of And a of outflows help flows if in us some future you of those see deposit terms flows outflows how securities side. expect just the the trough securities the I brokered to surge book? the about to start kind you maybe think of It in feels escrow those

Steve Gardner

I lot could questions David, I flows. ask you was wrapped of there's David. to give going Right. up insight there mean me deposit on if you a

unusual innings. if don't we're little early think bit it's we're know, late in middle I in the -- period. I of an a or

rather of how with respects And level some long billion remain of do Reserve some with it the the makes tightening funds or their that we terminal shrinking entire ultimately think we've do I is impacts a in rate industry quickly quarter coupled quantitative Fed month both get and and many that at on seen to Federal there the balance clearly sheet the decisions how we the $XX disintermediation. of and where a how then has there.

the have see out we there, on going I some I million we'll it's new see. And exchange roughly. $XXX plays time. that don't but maybe ended that the know right think commercial We'll trough. is initiatives do We development business at a and quarter business escrow at over how

saw we with. substantial estate in third volatility If stable, and which decline the commercial been quarter that in the you base strip to has owing really deposit pleased the we're pretty fourth the out and there pretty real transactions

And with will are that and the those the that fourth some were to deployed will began side. in we're we of activities of execute those seeing some really around on stages their -- infancy and initiatives the in quarter believe so pressures the offset deposit

David Feaster

Okay. know elaborate we That pace maybe could here forward? loan and you of if slower your standpoint touching maybe demand the you maintain, for weaker are you initiatives providing good about I balances And on economic backdrop. just about muted just somewhat also credit and is sense. from your returns? side. What we how production. conservatism maybe do think talked loan about I the look as And the production, on to risk-adjusted makes you improve some segments appetite talked was of still the your And hoping given

Steve Gardner

Yes.

the that's pressures to that estate the far we're as parcel business that always the we have around there's commercial do And to continue as production. done goes real things side, And going owner-occupied standpoint with the we given seeing part those -- some business. it naturally that, benefit segments with to we're in deposit the focus opportunities what think Where grow on margin is can pricing I on will the C&I go full the always fact on. to loans relationships. that and banking

forward. deposit the can that do we've that so deploy, going began to some us we'll as upon we again, are also move tweaks initiatives here. and There's depending in fourth of that again fact the have excess But look we benefit I made that quarter to think liquidity the do we incrementally, flows that we that

David Feaster

just seems the I the Okay. some Makes It sense. And and expanded then you maybe want side. line. last that on the touching points us of about especially would swap. accretion dynamics kind on the we accounted margin I front. -- that just just to swap hoping, being the are about of guys the margin talked if dynamics we in I of actually given one just fees, of within four make for help exclusive like basis you that sure benefits core deposit loan think loan was the include could that, understand have the are

So, and out core the just about will we swap the and help play think the dynamics as into of forward margin play us of some that? then look how

Steve Gardner

really good a I Ron it It's more. on Yes. David, can expand point, and let

Ron Nicolas

Yes, David.

As Steve in swaps margin XXXX, the of the couple of you include actually we're half were expanded highlighted, -- a out actually as our basis indicated, when you second taken which core points.

the running with somewhere and inclusive saw those there the the we're looking very swaps. a to that's loan at of XX% we're -- lift So XX% beta in good you getting from

been we Steve's putting earlier hopefully core the to continue that yields somewhat a deposit running, attractive where deposit's are closer on to incremental on is closer we on we beta the defend to we've the we on The hit loans -- broker getting that on deposits. are to and XX, an function loan of deposit escrow. that, the inflection continue very XX And the deposit basis. point that to the obviously books, comments, has But total additional side

rate So, and on we'll believes as loan Fed lift the in continue it is lift the our to the on here, swaps portfolio. additional will. get that on floating if additional the We'll moves quarter lift an first see market

in where it see we've margin goes, this we'll -- not point providing guidance we're although time. at So,

Steve Gardner

you clarify loan on side betas? Can the asset the on or

Ron Nicolas

Yes. fees the points. The loan fees, came X include beta, which we the basis down about

XX%, about right for you would loan was normalize quarter. that we beta on the But loan beta. XX% right be particular in anticipate, where level if XX% to that, the this So were it

on as beta. along that So right we're loan marching anticipated

Steve Gardner

things, But maybe fully we different these core the your they that include and happen Hopefully, a break to everyone components in that helps, one David. be want it good to see point do or of We can out some the all with income characterize is it. way on just would margin. so swap transparent

other reported is institutions, can margin across core you back for onion the us. So people, see some but with and peel consistent the the board for the

David Feaster

for rough each No, math on that's swap extremely there helpful. is the And any just, hike? benefits

Ron Nicolas

Yes.

of we XX million point, see basis $X.XX every For David, about benefit on that.

move see does that. that this Fed we'll whatever an incremental the basis on move, first if again, quarter, So, benefit go-forward in they in

add, points, in higher prepayment, we point which X, were I in and when might I also as margin down, terms accretion margin, last high you that, both in amortize, think X environment, fees, digit in X deferred running basis basis where point, that think about seeing single this the saw is fees that of we that basis range prepayments. obviously, from year, net we're

David Feaster

Okay. Thanks, everybody. That’s helpful.

Ron Nicolas

welcome. You’re

Operator

Matthew from question Clark with comes next Please, Sandler. The go ahead. Piper

Matthew Clark

morning. Good Hi.

Steve Gardner

Good morning.

Matthew Clark

can get then of margin. little of interest-bearing or down year we NIM end the month deposits If deposits December. the just at the for of the on the the cost Maybe spot and the a on drilling average more rate

Steve Gardner

Go it thought the I in earnings note. was ahead. release

Matthew Clark

might Sort of have been.

Ron Nicolas

spot deposit points, rate core XX, the we in The was the up XX fourth that so about Yes. from saw quarter average Matt. of basis

or X looking So spot a think the on the to average probably, in if spot quarter. basis, XX that basis at, saw probably across on to want so, about the you're increasing board, right over the rates around points now, we you it, rates, X

Steve Gardner

Yes.

Matthew Clark

get kind stuff, be lift just just Is the in done deposit that's a on kind deposit trying all-inclusive mean, underestimating to so total. not some the you've might costs costs. of fair? in I we I'm that core other But right? of

Steve Gardner

and think on you might. the on have rate deposits, total Hold Ron. I spot I Yes.

Ron Nicolas

Yes, I the Its deposits do. total I points at do. XX spot on basis rate.

Steve Gardner

At year-end?

Ron Nicolas

correct, versus At that XX, the year-end. average. correct. you That's quarter saw That's the Matt, for

Matthew Clark

Thank Great. you. That's helpful.

but can everybody Okay. And on of classified, bounce days. in hyper-focused then terms these around, in these mean, balances know I uptick the is credit pretty I

to for for want sense what and a what that the get just your outlook drove increase. So is uptick

Steve Gardner

There's on – be cost, through are chain where costs. the and go franchise on petroleum, folks also Ag There these it three couple or costs, were whether and the labor we some the and most and side one-off supply labor sector, they these, It's labor gas, the of fuel four. like. they poultry on various But impacted inflation, through as or were couple side, are a seem costs – challenges, specific a credits working Yeah. our on where businesses it's to like. to were diesel other and borrowers, they individual are the

Matthew Clark

for offering one client and last that, you've on existing about new lot guess, comment enhancing just think been marketing the guess, on I you're different? around call new this relationship and I begin the and a clients you're I executing with in knowing services, then acquisitions. the also to and of assume me expand efforts to And to bank Okay. products release, what's already. doing your a here I initiatives

Steve Gardner

– just areas efforts gaining particular areas as any other our just greater clients deeper where efforts are in with too of coupled maybe so it's There's go support that then, these been initiatives we've that existing it's and well. of have. specialty relationships I'm on whether to – And we to of we the with there, some No. doing things not deposits, just various we're some going marketing IOTLA specifics. – in a These in areas the you're and number of refinements it's can in doing where expand and some some where right into

Matthew Clark

Perfect. Thank you.

Operator

ahead. with The Chris next KBW. question go from Please comes McGratty

Andrew Leischner

is This Chris Andrew Leischner going? McGratty. it is how Hey, for on

Steve Gardner

morning. Good

Andrew Leischner

morning. Good

a capital of questions. your on priorities just couple So

this on is now. the any uncertain? are little a obviously right levels too point at environment the thoughts buyback Is or healthy still there using capital Your really

Steve Gardner

It's discuss with consider something option. and an that the we it's Board, regularly internally so and always

gain very I deploy. may visibility about it. something think we as we on But will again well we outlook is that to think greater the consider

Andrew Leischner

Okay. And you of M&A or Are and having sticking capital sort Thank marks? now? slowed a you. rate just right due credit still conversations on have those possibility is uncertainty potential to

Steve Gardner

in slowed given factors rate and the the And most equity protecting makes in very focused as and the I on in volatility those limits think, materially. just outlook that folks' as it's the uncertainty M&A it is. around markets, book. Throw markets additional the appetite. tangible pretty really it hard We're

Andrew Leischner

just you. slide credit. in the appreciate office I on detail And a then one But all and portfolios? color retail last portfolios. Okay. just on more you the different on provide Thank little the and statistics the deck maybe can

Steve Gardner

the in up quarter. include in Anything in QX. particular office? I around from No for? it's deck, particular shorten this we you're looking in To Yeah. it the there change, but didn't real think Anything

Andrew Leischner

Just like service the statistics around LTVs? debt and

Steve Gardner

coverages pretty closely. could pretty investor all are The to CRE, They're overall see that with at low we're X.XX which as the consistent properties, one relatively These stabilized in something debt slide XX%. on are page loan are strong monitoring the the but owned XX, coverage. mostly you values DCR

Andrew Leischner

Okay. Thank you.

Operator

next question The comes ahead. with go from Andrew Please Terrell Stephens.

Andrew Terrell

morning. Hey good

Steve Gardner

Good morning, Andrew.

Ron Nicolas

Good morning.

Andrew Terrell

point the Maybe you then hikes of know sheet for rate I Ron. just at think I locked a good you I in swaps. a in the funding the some preparing start And think really maybe at certain time. job balance in to on margin did ahead

thinking cuts take rate later the your in this actions preparation to curious be just looking balance And sheet potential how of for year projecting to in cuts? about any curve with on I'd the of ahead you're that the you're point the throughout managing rate specific time. year, Just thoughts

Steve Gardner

we close sheet a just sensitive Maybe generally the The market. you position Andrew. deposit take balance about looking our I'll that always in be we've any the it and clients a the way before that and in give loan environments pretty be that managed variety give provide neutral, is able and generate or one another are to really asset way products good to that consistent to of you to thought have need slightly competitive and broadly to Ron, there specifics earnings not

and at year. options approach are in So that we'll and We we approach. that has did to our look move benefiting continue be actions through continue to certainly various as Go the take an some XXXX ahead. that us. will XXXX been And

Ron Nicolas

hope to and Steve cash. add believe that the on And an said, Andrew just we've reached be inflection believe what have point reached be do to side to stabilization deposit there. we've has excess if we've what We to seen or some some we

As opportunities. some got Steve indicated that we've earlier reinvestment

it relates to swaps, But -- fortunate. pretty I we've well as think the been specifically pretty

We those year-end books. will good coming of chunk that by be a swaps off the have

you in if by good telling now believe see So, the Fed monetary right we chunk could we've is of the reversal got by a where what market policy those us year-end, a direction And coming be us -- as Fed. the again better could we off. a in will result the that see for what that reversal position for by a swaps will that is

well So, right where we hybrid we now. about on and they're we full it nicely. for we you protect eventuality. that type that feel as this And benefited putting knowing loans how some We positioned good were to needed pretty said are did very we've

Andrew Terrell

come okay. Yes, just percentage the the this you notional that amount off swaps Do year? of have

Ron Nicolas

year that fourth end of they matured until the Yes. don't and will swaps About start be quarter. XX% of those by the

Andrew Terrell

is and the where side. back maybe on XXXX the awesome. sticking balance loans of just that how margin you. adjustable just rate, are on on between front reprice of can of you book the have And the the trying asset average those Okay, the get some sheet what would sense much remind the occurring spread of repricing Just us Thank of a to so dynamics throughout that? book kind XX% the to just resets those

Ron Nicolas

tell the floating what loan The of about currently. if has ready you book got will. book that a just I've I loan here's ready, Well, you can rate XX%

And of also during XX X% rate the of XX% then probably course we've have got maturing call it, fixed another, of the months. We benefit next the year swaps. to the over

a that mentioned total all up would loan as repricing -- beta that in levels. I kind that be of a we're beta at earlier, you low a when the somewhere beta XX% looking So,

Andrew Terrell

And kind understood. I me. $XXX think your progression for but it last in I hear I remarks XQ, I quarter. I year. appreciate million was in commentary; mentioned one Okay, your expense to think be I guess curious million some the some $XXX first thoughts the called then I'd the to reduced the know staffing on prepared there's in of you throughout maybe maybe seasonality expense levels.

would curious throughout how the puts takes in the year? and should on the expenses we be and XXXX Just to hear think progression about the

Steve Gardner

to When quarter How give some point. we get that? we the what earnings, the first about that of you idea we'll quarter think at second is

Andrew Terrell

Well...

Steve Gardner

Not very right. helpful. I mean

do Here's – always obviously, right past, It's in taxes what have industry, seen upfront. as hit we I first would we a bit little say years get the we quarter with the like outsized. is get payroll

of You that incentives the have some as talked all resetting well. we've compensation some on of and about that increases, performance things front merit the

fourth to FDIC the – That premium. same would not course not first throughout be if you be from carry today forward we're quarter quarter saw projecting incremental to the anticipate to the – case. would the carry to delta of we the I will addition, In the year. that

Ron Nicolas

some the any and the that the deposit of costs which we And And the we staffing levels, pressure the on staffing don't comp on expense component in of is material benefits the way or change of will course, there. one base. though see are I from see another biggest continued mean side,

happy share we as the visibility out. with our quarter we're here, thoughts get are said, through I as to of into better it end get playing as the first things we how So

Andrew Terrell

the Yes understood. helpful. it. Thank for was That appreciate I questions. taking you

Steve Gardner

Absolutely.

welcome. You’re

Operator

Gary The D.A. from Tenner go Davidson. ahead. Please comes with next question

Gary Tenner

asked more A morning. for of of thoughts terms management kind already but the sheet of my in were one Good balance just lot questions just Thanks. year.

broadly? the of be off potential on terms to flows could securities, investment that reversal, those portfolio, coming cash you expectation that the sheet thinking about balance the reinvest are Fed a flows execution how you continue In or for cash or duration

Steve Gardner

But flows, back could on to securities growth, depends invest those play attractive those cash I yields magnitude loan think and what the in that from look deposit there activities, Gary, liquidity that more of loan we today. to different out. and the it some excess dynamics is at securities flows how certainly,

Gary Tenner

is projected the And cash portfolio year? Ron off flows this what the

Ron Nicolas

average little year million $XX on little closer the a It's per lighter quarter and million, to it's north call Yes. about in half first on the the first $XXX quarter. half $XXX half back $XXX of but the it for million, a of million per

Gary Tenner

Great. it. of other big just Appreciate just then question And one kind picture.

I side of effort sales kind think from your and credit the the kind or calling aggressive has always pretty separate of house. been of

environment risk the or an that really lower within some is in than you opportunities fit do side appetite? it's the for kind your So of folks of turn credit that repurpose business, where and appetite appetite current maybe is a it those been, little of to on might just over continuing rocks

Steve Gardner

of the as activity a going we've in think half beginning of here at we but said, we've reductions point, some here assessing of fourth some a XXXX. that. Where is I stable, with staff think two, initiatives during But this lot combination And had second quarter. the we've we of it's Gary. got pretty always the on you're are the

start of will. billion, more on to big that there sort a new adjustment go folks. to as throughout through was closings really running I pretty to had $X gears playing think the I our the question of the think that no $X.X activity pipeline team impact you and of in with And were big if that and an environment, here occurred And outstanding switch the we billion. excess there's offense was bank year, adjustment a well last in through has $X quarter billion, that commitments adjusting fourth job done team that a got level to a current in of bit of on the

Gary Tenner

you. thoughts. Appreciate Great. the Thank

Steve Gardner

Absolutely.

Operator

question-and-answer I session. our conference the turn back remarks. would concludes Gardner over like Steve This to to any closing for

Steve Gardner

MJ all for you Thank thank you and attending.

Operator

now presentation. Thank concluded. you for attending has today's conference The

disconnect. now may You

Pacific Premier Bancorp (PPBI) 26 Jan 232022 Q4 Earnings call transcript