Form 4: Pacific Premier Bancorp Executive Sells Shares and Holds Restricted Stock Units

Michael S. Karr, SEVP & Chief Risk Officer of Pacific Premier Bancorp, sold 10,290 shares of common stock and holds multiple restricted stock units.

Summary

• Michael S. Karr, the SEVP & Chief Risk Officer of Pacific Premier Bancorp, sold 10,290 shares of PPBI common stock at a weighted average price of $26.87 on December 17, 2024.
• The shares were sold in multiple transactions with prices ranging from $26.85 to $26.92.
• Following the transaction, Mr. Karr directly owns 31,007 shares of restricted stock and indirectly owns 79,474 shares through The Karr Family Revocable Trust.
• Mr. Karr also holds multiple restricted stock units (RSUs) which may vest based on the company's performance over a 3-year period.
• The RSUs are tied to performance metrics including total shareholder return, return on average assets (ROAA), and return on average tangible common equity (ROATCE) compared to the Keefe, Bruyette & Woods, Inc. Regional Banking Index (KRX).

Sentiment

Score: 5

Explanation: The document is a standard SEC Form 4 filing detailing an executive's stock sale and holdings. It doesn't inherently indicate positive or negative sentiment, but rather a routine transaction.

Risks

• The vesting of restricted stock units is contingent on the company's performance, which may not be achieved.
• The sale of shares by an executive could be perceived negatively by the market.

Future Outlook

The vesting of restricted stock units is dependent on the company's performance over a 3-year period, with the potential for 0% to 200% of the targeted amount to vest.

Industry Context

This filing is a routine disclosure of insider trading activity, which is common in publicly traded companies. The sale of shares by an executive is a normal occurrence and does not necessarily indicate a negative outlook for the company.

Comparison to Industry Standards

• Executive stock sales are a common practice in the banking industry, with many executives holding both direct shares and restricted stock units.
• The vesting conditions of the restricted stock units, tied to performance metrics like total shareholder return, ROAA, and ROATCE, are standard practices in executive compensation packages within the financial sector.
• Companies like Zions Bancorporation (ZION) and Comerica Incorporated (CMA) also use similar performance-based vesting schedules for their executive compensation.

Stakeholder Impact

• The sale of shares by an executive could be perceived negatively by shareholders, although it is a routine transaction.
• The vesting of restricted stock units is tied to the company's performance, which could impact employee morale and motivation.

Key Dates

Keywords

Pacific Premier Bancorp, PPBI, Michael S. Karr, stock sale, restricted stock units, insider trading, executive compensation, KRX, ROAA, ROATCE