Pacific Premier Bancorp Inc (PPBI)
Pacific Premier Bancorp Inc's Comment on Competitors and Industry Peers
We consider our Bank to be a community bank focused on the commercial banking
business, with our primary market encompassing California. To a lesser extent,
we also compete in several broader regional and national markets through our HOA
Banking, SBA, Warehouse Lending, Franchise Lending and Income Property business
The banking business is highly competitive with respect to virtually all products
and services. The industry continues to consolidate, and unregulated competitors
in the banking markets have focused products targeted at highly profitable customer
segments. Many largely unregulated competitors are able to compete across geographic
boundaries, and provide customers increasing access to meaningful alternatives
to nearly all significant banking services and products.
The banking business is dominated by a relatively small number of major banks
with many offices operating over a wide geographical area. These banks have, among
other advantages, the ability to finance wide-ranging and effective advertising
campaigns and to allocate their resources to regions of highest yield and demand.
Many of the major banks operating in our primary market area offer certain services
that we do not offer directly but may offer indirectly through correspondent institutions.
By virtue of their greater total capitalization, the major banks also have substantially
higher lending limits than those we do.
In addition to other local community banks, our competitors include commercial
banks, savings banks, credit unions, and numerous non-banking institutions, such
as finance companies, leasing companies, insurance companies, brokerage firms
and investment banking firms. Increased competition has also developed from specialized
finance and non-finance companies that offer wholesale finance, credit card, and
other consumer finance services, including on-line banking services and personal
financial software. Strong competition for deposit and loan products affects the
rates of those products, as well as the terms on which they are offered to customers.
Mergers between financial institutions have placed additional pressure on banks
within the industry to streamline their operations, reduce expenses, and increase
revenues to remain competitive.
Technological innovations have also resulted in increased competition in the financial
services market. Such innovation has, for example, made it possible for non-depository
institutions to offer customers automated transfer payment services that previously
were considered traditional banking products. In addition, many customers now
expect a choice of delivery systems and channels, including telephone, mobile
phones, mail, home computer, ATMs, self-service branches, and/or in-store branches.
The sources of competition in such products include commercial banks, as well
as credit unions, brokerage firms, money market and other mutual funds, asset
management groups, finance and insurance companies, internet-only financial intermediaries
and mortgage banking firms.
We work to anticipate and adapt to competitive conditions whether it is by developing
and marketing innovative products and services, adopting or developing new technologies
that differentiate our products and services, or providing highly personalized
banking services. We strive to distinguish ourselves from other community banks
and financial services providers in our marketplace by providing a high level
of service to enhance customer loyalty and to attract and retain business. However,
no assurances can be given that our efforts to compete in our market areas will
continue to be successful.
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