PPBI - Earnings call transcript Q1 2024 | Pacific Premier Bancorp, Inc.

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Operator

Good afternoon and good morning, and welcome to the Pacific Premier Bancorp First Quarter 2024 Conference Call. [Operator Instructions]. Please note, this event is being recorded.

I would now like to turn the conference over to Steve Gardner, Chairman and CEO. Please go ahead.

Steven Gardner

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

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

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

If you visit you download a our encourage presentation the to to copy website have of so Relations and we done the not already, Investor related materials.

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

today's call, questions. through And also results. details walk our performance. I'll items the related some financial to will notable On Ron then of we'll to review CFO, quarter of our the a open few our up first surrounding call Nicolas, the

a continues in challenges execute level Navigating landscape. team an capitalizing banking to on and at high opportunities. evolving Our

to we throughout solid we the interest dynamics. we share. or management client Many of and per challenges, commitment demand During the Despite of net were these the to the pressures, competitive delivered inflationary XXXX. $X.XX our XXXX long-lasting muted rates, in prudent quarter, results cultivation of of similar relationships. risk $XX pricing with income trends million maintained and saw beginning Elevated quarterly loan what ongoing

interest of increased X.XX%, our Our last to net result margin XX series direct repositioning a points basis quarter. of portfolio

$XX.XX. tangible among per capital first being given XX.XX%. ratio increased accumulation the our book the over TCE XX ratios quarters, strongest industry. ground, to to capital share on points our increased began solid our year value to our $X.XX We the past several in And quarter, contributing basis In the our

ratios provide capital top and and XX.XX%, with Our regional a XX.XX%. a CETX to level in the risk-based in us healthy place us optionality. total ratio ratio banks consistently other came was high of tier relative our at These

that the strength, clients remained bank. generation disciplined attracting new we to committed with to existing significant created business customers banking always In with is to through we operated franchise full note and clients deepening on primary that growing efforts, have with a relationships deposits. value capital have a the to our emphasis It's relationships philosophy new addition important fostering development of with

continue certificates, to savings quarter. was we money did notable As toward this growth market deposits million deposit funds, largely and be of directed it inflows see in noninterest-bearing retail $XX that

to by borrowings uncertainty, increased FHLB million, $XXX macroeconomic in driven significant increase Despite million during by us by total $XXX further quarter. higher-cost and deposits non-maturity deposits, the $XXX million reduce enabling

higher our client for nonbank have deposits preferences an as XX% alternatives. seen up nonmaturity of was given outstanding the controlled higher-yielding deposits non-maturity interest we at cost Given rates, X.XX%. also deposits well and circumstances current the made average total towards Ultimately, expectations teams of did job

level balance of wholesale customer and closely anticipate side funding sheet, the the deposit On that tied to will will -- liability of loan our we be flows. closely

for that seasonal quarter expectation to flows due reverse could Our current deposit the factors. is

were On slightly prepayments balance modest new loan to our our as the of sheet, saw which side the level we of contract fundings, loan asset exceeded begin year. the balances

Loan more and new advance higher aggressive offer terms. while a demand with been loans willing to increase muted, for seen relatively notable rates competition has lenders has

debt. to deleverage In sheets, cash in clients reduce commercial addition, real some estate excess reserves business continue to utilizing their balance

loans second opportunities to portfolio to loan quarter, we modest be see these we increase high-quality able the relationship to as market new and are that we a in beginning through head the dynamics, we'll are move add optimistic cautiously year. with Even as the into

Shifting to asset quality.

to underwriting mitigation to proven proactive our portfolio our disciplined loss exceptionally Our tactics. experience metrics remain flow approach cash a management soft remains and active owing loss standards, and X-legged low,

result million the million the $XX of owner-occupied real nonperforming or relationship downgraded $XX in and C&I, assets, increased loans of a estate banking the real were the multiple assets Pacific estate commercial quarter, $XX with types. includes This to million Northwest. investor in of diversified quarter. relationship Approximately in the this single loans, During primarily real X.XX% property relationship comprising total estate

aggressively all Consistent on credit with the solution. of delinquencies issues, X.XX%. with bank's ended that total loan closely quarter swiftly note we borrower I'll has long-standing is and particular acted approach team the resolving current to potential working guarantor with the the a this just on payments

portfolio updates maintaining trends to on managing communication market monitoring, open always, of our industries. and credits. take management status, These their clients' financial market and lines regular shape our clients regarding dynamics liquidity a we As proactive to with individual approach our in credit respective approach

management risk a culture variety our problem of regularly and in been utilize always resolving in Credit we has tools deeply credits. ingrained

are closely and the is organization. real Overall, structured commercial monitoring trends and weaker identifying the managing We effectively estate in in and markets our proactively credits. portfolio loan facets the all across potential managed

minimal of through These tenant due properties broader borrower. to housing multiple stable projects, interest and the discussions provided the slide are for the the which us more rate A loans one our control housing been majority highlight our we are this X and portfolios. with add with broadly, was asset presentation. in workforce to to are due in the degradation have our NPLs of to in Coast A as flows compared loan couple particular, industry affordable disclosures market we cash in other loans credit California, best-performing seeing quarter as overall and As our specific base. to more tied investor I such, multifamily and West to within there which in have materially in been investor losses we are, economic than are regulations throughout noted, mostly of alternatives York, history around highlight have cycles. the deck. additional in New are I'll an items not the multifamily the the in different Western Recently, that sensitive Rent movement forces. U.S. circumstances loans, less classes

growth drive strong that goals maintaining of effective our call Our to long-term practices. management ] value to while franchise adhering levels. the risk-adjusted enhances and risk capital [ expense Disciplined remain profitable

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

Ronald Nicolas

Thanks, Steve, good morning. and

purposes, are otherwise comparison today my noted. For basis linked-quarter unless on comments a

by looking first overall the start at Let's quarter's results.

For common the per $XX million This or translated a generated of on income return we net into $X.XX quarter, first of tangible return share. and X.XX% assets XX.XX%. on average average equity of a

margin average by asset securities yields, from balances, the in our fewer as Our repositioning XX at our $XXX.X full a the income yields. average our swap at points million X.XX% closer asset lower overall came efficiency to as of the saw net Net by primarily pre-provision to for and as in of ratio quarter. interest totaled Taking net day percentage expand a well reflected look from a lower earning due higher revenue contribution offset statement. assets the income the We point in quarter's benefit X quarter interest X.XX%, basis a earning and XX increase portfolio. basis XX.X%

loan at Total X.XX%. were average flat reported yields

points our However, to income, was as increased rate we line cost X.XX% XX part utilization our average basis rates quarter. during increased Overall, fees swap This in the weighted the in compared cost due discounts, the and increases. basis strength the to of funds saw to increased X excluding quarter. draws of and points continued prior loan portfolio deposit

compared quarter of costs deposit nonmaturity X.XX%. the average prior to X.XX% Our

CDs, nonmaturity illustrating XX%, which deposit XX% is disciplined at stands includes our our broker beta and this deposit deposits cumulative cumulative our pricing rate beta While throughout retail cycle. and

deposits quarter, our in of our well as second funds, of size mix margin the be the cost For influenced the net the continue of and mix loan will to portfolio. interest by our increases as

consider will net we remix interest lower support yielding wholesale excess quarter, margin. earning second sheet deploying into that of should funding higher tandem with the the at the assets balance Looking to help liquidity in levels

a borrowing quarter's tax on fees at Excluding to Trust income March. $XXX to $X.X due noninterest million, the the $XXX.X primarily were security annual $XX.X earned million sale increasing each fourth increased prepayment million $X.X the million FHLB term to favorable, fee year. the $X.X income gain million of of in the results million loss beginning due of

estate our and decreased we year. ended transaction perspective, million noninterest expense as due expect to taxes to slightly $X.X as second as payroll million to be a For of increased a of impacted quarter From XXXX, March $XX commercial Noninterest $XX last be expense to well real Compensation income higher with to staffing fee-based continue lower primarily the in total million as $XXX.X adjacent our expense. the range the headcount of of benefits quarter volumes. of annual to million. by XX we businesses equity-based X,XXX compared compensation X,XXX

$X.X HOA expected deposit an increase higher as deposit saw well a million earnings rates also deposit by driven expense in as higher seasonally credit balances. We

slow similar deposit increases our foresee do expectation that rates. is these will rates, earnings While credit we increases interest in to

a expect in We $XXX to merit to personnel well the quarter's and as the range expense increases continue related million, annual our expenses costs. base, manage and we representing impact as quarter full of of benefits diligently higher million second $XXX

provision credit $X.X unfunded slightly our a million our which reserve million loan reflecting increase $X.X unfunded in sheet lower Our a $X.X in included loss the prior increased for commitments. million is from commitment and quarter, on-balance decrease reserve,

cash prepayment held with lower the and million. to balance loans sales decreased slightly lines quarter, funding. a $XX.X We of total in $XXX did maturities deposit new lower of prior exceeding seasonally sheet. million commitments $XXX wholesale loan driven higher by billion than increase the see by for and ended the $XXX and We now balances draws quarter funded of million by in Total million, part Shifting loan investment driven assets, on existing slight net flows. in $XX

utilization to prior XX% was Commercial we quarter, the down time. rates over come line with expect for in although XX.X% first quarter the compared utilization

quarter, in inflows non-maturity mix $XXX Total seasonal total due We sheet liability linked wholesale as move into mostly deposits via increased the impacted in us outflows we lower increase the deposits deposits balance As some as -- a quarter. would enabled growth noted, quarter funding. second to to our season. tax remix million first the side anticipate $XXX the particular, of in positively million

a $XXX also decline a in in offset CDs $XX broker We partially increase saw million million deposits. retail by

our to and In on of portfolio flat The FHLB million million the yield securities maturity additional we mix. investment portfolio billion, $XXX increased an latter funding was basis we continue $XXX the average paid in term X our points to advance, fine-tune $X.X of addition a quarter the at to X.XX%. part as the down

purchased million X.XX%, treasuries rate invest to quarter, stated at a During highly securities. liquid our short-term, consistent desire in the with in U.S. blended of we $XXX

capital to quarter. continue bank environment as ratios on further focus We accumulation and consolidated a capital and result, our this strengthened in this

to March tangible per of our $XX.XX. increased value book XX, As share XXXX,

increased overall to for result to X.XX% increasing X loans delinquency quality total favorable from standpoint, point relationship investment. quality Lastly, previously assets asset held to asset Classified borrower basis assets Steve X with of generally a mentioned. remain the as an total of trends X.XX%

Our charge-offs reserve on-balance provisioning coverage X our a for our net virtually sheet ratio resulted the and at for the million, nearly unchanged ACL our in matched ACL X.XX%. point $XXX.X in increase to basis leaving ACL quarter,

absorption acquired loss fair higher quarter value through the acquisition, ratio discount With X.XX%. total for our the bank on loans at ended

With call Steve. to that, back turn I'll the

Steven Gardner

I'll moderation outlook. some as longer, be costs, cash positively Great. deposit assets. short of costs. Thanks, magnitude higher higher-yielding into In few If for if the to pressures cuts, Ron. our additional deploy term, conclude about in timing comments impact may depending Rate and see we rates the upon funding the a remain in XXXX cuts. could deposit with any, there appears clients

by to integration the We banking existing deposit any will look and to clients high-quality relationships offset franchise. relationships whole new expanding attracting with

head return As loan positioned well our are to thresholds. new attract meet the adjusted we into second opportunities that quarter, we opportunistically

inflationary continue there ongoing the pressures, deploy our a uncertain While volatility presently outlook, geopolitical number to capital including assess alternatives to interest contributing to levels. and we excess are will and various rate of risks, factors proactively labor

to to a rate which committed interest approach find our risk higher shareholders management, are This We increasingly longer environment. ourselves important will has become served our proactive organization credit for in a various and cycles. well through prudent we if

stakeholders well to as efforts employees their as we of long-term like the our outstanding Premier creation. organization for prioritize thank our all as continuing all during to support I'd value Pacific for sustainable quarter,

for That happy be questions. call concludes the our to prepared open remarks. any questions. answer Gary, We'd please up

Operator

We session. begin Instructions]. question-and-answer will [Operator the now

Chris The is first KBW. question from with McGratty

Christopher McGratty

a maybe for you. Ron, question

balance Steve, be tweaking guess of we sure assets over comments. balance get about level Just some trying And seeing how the of your the we [ the to sheet. loans sheet, I'm earning inflection. the next that mean bit a Does should make want maybe to ], I little I'm just thinking early signs comments grow about and couple quarters. decline back for half? potential of in sense understanding overall a in some more

Steven Gardner

looking at We're good question, Chris. a it. It's still

I going of lenders willing I opportunities And to but been aggressive here And commented, just that structure. in to at certainly discipline. maintain the think little seeing, we've encouraged we're as there. surprised our and are we're bit sacrificing go I how some we're also, by then we're term not a just some

So see. we'll

It's it's reverse But is to certainly, rates the prepays, you're we my dictate this on how -- well quickly we're decline in a utilization our there's to of play. that. expect the we factors and discipline to aware, able really upon that paydowns, going -- loan as multitude dependent And line portfolio. is like. expectation loan, factors, of certainly lot the a it's the grow But to at ability

Christopher McGratty

what's remarks. your Ron, to you in over terms happen just mechanics, you the the next And me, swaps of in swaps? prepared briefly great. Can few remind That's the quarters Okay. going mentioned maybe,

Ronald Nicolas

Chris. Yes. Sure,

swap flat our very here. similar the will in no quarter remain position. this basis And this points the contribution it, to the the swap expect we margin. first interest for to roughly, change XX, our will XX to I that There So second be portfolio have quarter, total in call net results fairly principal quarter

In Qs -- rate modeled in a those each we've cut of we do have X X, a rate and quarters. cut

that's to So important note.

to from do of X X quarters points cuts going haircut rate that's So to by those if fruition. each basis to come anywhere those

down in in and by $X.XX is And XX% we're half, in of than then about the a have a QX principle. then -- by And outstanding, then call fourth quarter, we the little more current fourth it, step small about QX our billion which today.

$XXX the million at we're quarter. by about fourth So

we'll points the and in X the XX X the about. here half most notional, excuse little basis about -- more in comes -- QX, a fairly to XX then me. will step in down for if in step XX, So XX again, consistent And QX, we cut will rate be principal Yes, QX, notional the actual saw what QX, -- part, half. with than down

Christopher McGratty

Okay.

So a the a headwind bit back the of year. in of little

Steven Gardner

always, options. assuming like [ swaps then. And And now it's we we're ] and of a between that's don't assessing getting variety

Christopher McGratty

Okay. lastly, on rate. Perfect. just tax? the guidance maybe And then tax Any

Ronald Nicolas

right a about the XX% bit lower range. be I where the year for rate of think tax -- full we maybe in XX%, quarter each tad probably net

Operator

Piper Next Sandler. question is from Matthew Clark with

Matthew Clark

Maybe just conversation. the NIM rounding up

the If of month and on the March you the spot end had NIM rate in at the average deposits of March?

Steven Gardner

end is I the in think in the of IP. the the I spot rate it's IP. know

Ronald Nicolas

there. Disclosing head, top the have don't it off IP the I Matt. of my

Steven Gardner

And for the down few terribly material. we came not quarter, a the points then, NIM basis March where average out. is but was the from Matt, It

Matthew Clark

down Okay. borrowing just paid $XXX And then the million FHLB. cost, of on you

to -- those of Should maybe rate of rates. some expect the the at increase think in I that borrowings QX? were lower borrowing we here cost

Steven Gardner

$XXX end the have QX. Well, early rate, it, matures that on a in and is have of term noted we QX, the that I million that's we fixed that mean, --

Ronald Nicolas

Early QX.

Steven Gardner

matures. is that QX Early when

absent unless FHLB historically as off or to which we've not paid about, our is whether reduce we early, them. wholesale plan over brokered So talked it's borrowings We've time. funding, used that

So that's the some company. [ borrowings. additional absent at troughs holding some do but our debt, plan, No, have we sub ]

time potentially to look we'd so something over well. as do there And

Matthew Clark

are swap the securities help And income odds to then so that considering guess maybe running Okay. in just loss with Got the downdraft. more XQ. I trade it. those what mitigate just off of

Steven Gardner

here. owes I lot a capital that our We're that variety I the of think to optionality. And high we've of always the really given got mentioned we're that a levels, assessing tactics Board management. comment

and at well. look as that to options other continue to going we're So

Matthew Clark

quarter. it's just you more at quite Okay. a open And this to think, this bit you on capital, up then buyback again do Are a now, level?

Steven Gardner

continue we're very board right the now. it, I across absolutely but levels think going right. quality have about the credit, that to -- the Board, outlook, that relationship the It's we given of to We -- that up, X mean, moved you're than remains talk other strong. recognize the capital X very I we're if asset high

that continue we'll So assess to well. as

Matthew Clark

And -- Okay. sorry. then

Ronald Nicolas

Matt, X.XX%. spot I to on about earlier, -- the the you that say going was was rate asked just it

Matthew Clark

I total looking the nonmaturity spot the at great. saw I -- that's so thought I was That's I nonmaturity Okay. helpful. thought rates,

I Okay. know And I then we maybe you guess have just, Ron, you. here. mentioned, have it, while but in think, I I I back into also get accretion

this So isolate quarter I'm in trying the just swap income to dollars.

Ronald Nicolas

dollars million. income $X.X was in swap The

Operator

is from with Terrell Stephens. question The next Andrew

Andrew Terrell

to Just on the of $XXX last Do that? The have this year. current up term remaining FHLB, I follow matures of question million you it, around the get later FHLB. cost the

Ronald Nicolas

Let me to have at head, it -- head look Andrew. We can yes. up my that, our of a take -- top

Andrew Terrell

it. there XXXX maturity, the Okay. of like this that sounds And the it, half an it kind is it early also nearly tranche so or of swap beyond around Got then late on up? in matures discussion Is year. incremental

Steven Gardner

It's piece in think that's out. I a small XXXX and

Ronald Nicolas

in continued XXXX 'XX. to and little laddering Yes. there's Yes, bit maybe even a early

Steven Gardner

that. Relative all of

Ronald Nicolas

we're What notional. [indiscernible] talking Steve yes indicates, -- as

Andrew Terrell

Okay. Understood.

the helpful. On would kind more more the seasonal front, growth-wise heard saw comments seasonal you the seasonal quantify the headwinds you what curious if quarter the little could in either nature, occurred growth first deposit some magnitude that of seasonal you in headwinds the be quarter XQ thought was of just the around some of second I that maybe in the maybe in expected I'm a kind expect was you quarter. second of would maybe here or deposit you

Steven Gardner

to of with really specificity Andrew, Matt. me. all, hard both are excuse think any those at I quantify

got was some they've pretty bills at. pretty they're depositors, our year, some and some tax that business think I that up healthy good last looking the larger got coming pretty in to talking we've of clients, --

then sometimes some seasonality factoring and just the business HOA that so in that other see And we're the in and we like.

it, we to for we but wanted just estimate don't a specific you. So highlight have

Andrew Terrell

can overall. cash the have earning appreciate some No, maybe trying versus north normal comments last more just being what as out [ would you Just deploying for higher-yielding think forecast, assets. What Ron, it. position figure a I the it's a I you around some heard Maybe of the I'm to tough curious of sure. to the Okay. just you into view today? I -- cash of quantify. little me, cash maybe excess for ] I'm one the position on

Ronald Nicolas

normalized under be a Yes, range we've move that uptick of would But with quarter, down of $XXX this discussed the lot next we times, times, a million in been somewhere did that cash, us drivers little quarter and kind At $XXX that, the million that here over range. and slowly normalized. in cash direction somewhere we've see key Sure, would as bit slight lower And looking normalized were. a a into effectively, the or around anticipate Andrew. environment more been forward, half X would is of slightly probably I to expect that higher. well. already we've I there a

Andrew Terrell

you taking my for Thank question.

Ronald Nicolas

that tranche, tranche last XXX. that is Andrew, Yes,

Andrew Terrell

The $XXX million?

Ronald Nicolas

Yes, that remaining $XXX million.

Operator

The is Davidson. with next Tenner question Gary D.A. from

Gary Tenner

and to a entity [ year's talent kind what banking Most is of terms of questions just opportunity and lending you're sense I'd in run competitive the environment. just from seeing competitive the from in of the failures Steve, curious last of broad kind typically of But I'm California And asked. been some my have financial and you from hearing the to kind your dynamics? ] hear banks given against? appetite merger state label specific the of love up what of

Steven Gardner

Sure, Gary. there. to lot unwrap There's a

if try if I it. I cover Let me could see see to

lenders muted little there what seeing. as that out that's we've how But of we're structure. term remarks, of demand just surprised our and aggressive a the we rate. some that I the on is understand just the I maybe prepared some are things relatively mentioned scratch think at fact on we that bit mean I kind in been there. But heads are

-- away It what credits my From of the dynamics really think I pricing we when really lines I'm not what are every fall some specific on maybe some business. we of they're earnings some I is out nearly short-term boy, thinking? that under and pricing what just walk deposits, standpoint, people or but see I chair are say, maybe sure. different than that are thinking, experiencing day

to is out done the but team and can. standpoint, the From our where thing. are about not upgrade talent historically we that strong, have seeking team we We always gone

of Just interest regulatory historically headwinds impact course, and hasn't rates. and now, actually on into fair is and the just right uncertainty on M&A stock probably transaction capital And that's environment isn't own impact going in that there. M&A valuation our just multiple, of investment really and standpoint, -- how of it's a is the lot going biggest then, whether return in volatility it's market how And whether M&A. the there's a unknown rolls done. ratios to then get to accounting just -- to take value the long and it to the

playing it as that's well. into so And

well generally activity, that And allows the far everybody been is which the spend of. aware time with of ideas. on muted so level more colleagues of some your being is it thing it's helpful to relatively us great as as But M&A

Gary Tenner

appreciate your thoughts. Okay. I Steve,

Steven Gardner

Sure.

Operator

David James. [Operator Instructions]. is Raymond next The question with Feaster from

David Feaster

Maybe just ones. X quick

maybe the broadly be home we ancillary Fed impacts. improvement a just hammered Obviously, we've the of cuts. cuts. in touching curious, of But I'm sentiment some start nice think going do on to if I getting impact there's

curious, from think fee get loan And we from benefit cuts statement growth the So income sheet the obviously, side, growth you expense balance impacting earning Fed too, credit of I'm side. in do about revenue or on just how parts other to some escrow?

of your maybe around getting just So start declining some do we rate thoughts a those dynamics of some environment. if

Steven Gardner

Yes.

are that. I of seeing it environment what's could widespread driver slowly which be driver site-only down certainly starting that or are inflation to think to declining come the disinflation, the is going be contracting? jobs we be Is So problematic. to are going of that is what that think going I because be rate expanding, not to but

soft all of are a hopeful prognosticators wrong. but generally have most us us that forecast all of obviously, it's been landing, think, I

prepared generally rate balance from think that for neutral variety standpoint, from So protect the tail capital I the we're a risks And relatively occur. may of scenarios levels and situations. us that standpoint. carrying manage sheet risk our We we're an from interest

the I environment, the and if point interest But landing that -- rates, and probably as If that's our of you'd funds to not can demand overall where XXXX and that would time growth you activity. occurred, kind were see somebody get like exchange be play a type if in the in does think increased of nice higher-yielding probably see would soft around some yes, like in would the if certainly areas in increase activity the credit deposit that you'd declining improved decline out. would [ that's actually and scenario market benefit that you one potentially see that us exciting. ] to occur, gradual a history escrow rate business probably money and being attractive flows, other alternatives

David Feaster

to a Okay. holding you from they're hearing is -- That's long where how I competitive mean, demand there kind outlook right and cautious down strategic, Are back you're in your they I board. maybe helpful. and a the mean it's clients? And was in for of what the new across you've appetite are really for materially. much the it just seeing the you've just of had for then landscape. slowed market clients. conservative curious where and out less the time, -- I'm And on been -- or it's the any pulse on touching call. originations more going origination -- obviously even mean uncertainty I competition is Like there mines I'm maybe of then investing? credit? And is curious, decline

Steven Gardner

think the Certainly, $XX quarter. I adjustments make conscientious activity to and I any the pretty to That's going back complex, about to us and no it's significantly owes luck. there's made the always don't pleased trying in decision have million structure, think were discipline balancing Yes, always. a answers. But originating loan simple first act, pricing slow way. early you're There are to that, of new around I again, right. -- XXXX. we We that as you're too that a the think, along

think a generating or with of seem a competitive client and I about standpoint, are, labor from effects environment. doesn't operations enthusiasm cash our good but of dealing where excitement they there be beyond flow, to they're the they're lot expanding inflation still

And profitability generating but pleased the if our for cash you are lot with owners pretty there now, seem so will. flow business and doesn't enthusiasm expansion, they're a of

I for others, that domestic are and risks to an think play the those certainly influence at have geopolitical year and election at dynamics geopolitical risks some decision-making and this their of international their businesses.

we and and opportunities So certainly to relationships high-quality to execute it's the that to we credit were that But capital some the on fruition have dynamic see that in said, question add can a market. on attractive because loan the and that's to incremental multipronged we the going as I began and ability hopeful we're come will book.

David Feaster

That's last one. great. maybe And

I'm among and that loans sales, of sales just continued then like and within any of the with them CRE this on potential coming got drove curious, some couple reputation was saw whether specific the -- And those credit, additional quarter problem a aggressive commonalities be or market great quarters? in what's as just in advise. anything sale. of there a some some the that there some interest sales You've the manager like an CRE loans might substandard proactive credits.

Steven Gardner

We've it's We're credits. that that of to. They them. back any Yes. we business. this that individuals loan small borrower, worth out specific continue that expected. We And long the in we've high individual or amongst time. those X number pretty to way good denominator tried And market we really going generally X didn't There gone are to it Look, that I firms, wasn't involved a to sold. business, period work we execution we've think broadly net any property were -- sales necessarily get that don't of utilized had don't common there. of funds, for a

loans put to we'll to out So on action and continue decide what We'll we then regularly of course best is. -- pretty consider it. the bid

Operator

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

Steven Gardner

to Very good Have you, at week. conferences. good. Gary. seeing Thank folks Look various forward a

Operator

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

You may now disconnect.

Pacific Premier Bancorp (PPBI) 24 Apr 242024 Q1 Earnings call transcript