Form 4: Pacific Premier Bancorp Executive Reports Stock Transactions

Michael S. Karr, SEVP & Chief Risk Officer of Pacific Premier Bancorp, reports transactions involving PPBI common stock, including share transfers and tax liability coverage.

Summary

• Michael S. Karr, SEVP & Chief Risk Officer of Pacific Premier Bancorp Inc, filed a Form 4 detailing changes in beneficial ownership.
• On March 31, 2024, 1,613 shares were disposed of to cover tax liabilities related to vesting restricted stock awards at a price of $24 per share.
• On April 2, 2024, Karr transferred 1,387 shares to The Karr Family Revocable Trust dated February 15, 2005.
• Karr directly owns 31,007 shares of PPBI common stock and indirectly owns 89,764 shares through the Karr Family Revocable Trust.
• Karr also holds restricted stock units representing the right to receive 9,477, 14,051, and 15,480 shares of PPBI common stock, contingent upon achieving certain performance goals.

Sentiment

Score: 5

Explanation: The document is a standard regulatory filing detailing stock transactions. It doesn't inherently convey positive or negative sentiment, but rather provides factual information.

Future Outlook

The vesting of restricted stock units is contingent upon the achievement of predetermined performance goals over a 3-year performance period, with the actual amount received potentially ranging from 0% to 200% of the targeted amount.

Industry Context

This filing is a routine disclosure of stock transactions by a company executive, which is common in the financial industry. It provides transparency into the executive's holdings and transactions in the company's stock.

Comparison to Industry Standards

• Executive compensation packages often include restricted stock units that vest based on performance metrics.
• The performance metrics used by Pacific Premier Bancorp, such as relative total shareholder return, ROAA, and ROATCE compared to the Keefe, Bruyette & Woods, Inc. Regional Banking Index (KRX), are standard in the banking industry.
• Other regional banks like Western Alliance Bancorporation (WAL) and Bank of Hawaii Corporation (BOH) also use similar metrics in their executive compensation plans.

Related Party Transactions

• The transfer of 1,387 shares to The Karr Family Revocable Trust dated February 15, 2005, is a related party transaction.

Stakeholder Impact

• The transactions may have a minor impact on shareholders due to the change in ownership, but the overall impact is likely minimal.
• The vesting of restricted stock units incentivizes the executive to improve company performance, which could benefit shareholders.

Key Dates