Shares of Pacific Premier Bancorp (PPBI) surged 5.10% in intraday trading on Friday, as investors looked past mixed second-quarter results and focused on the bank's improving asset quality and upcoming merger with Columbia Banking System.

The California-based commercial bank reported its Q2 2025 earnings on July 24, revealing some challenges but also signs of resilience. While the company's GAAP earnings per share of $0.33 fell short of analyst expectations and declined 23.3% year-over-year, Pacific Premier showcased significant improvements in asset quality. Nonperforming assets dropped to just 0.15% of total assets, down from 0.28% in the same quarter last year, indicating stronger overall financial health.

Investors appear to be optimistic about Pacific Premier's strategic direction, particularly its pending merger with Columbia Banking System. The deal, expected to close as soon as September 1, 2025, could provide significant growth opportunities and cost synergies. Despite merger-related costs impacting the current quarter's results, the market seems to be pricing in the potential long-term benefits of the combination. Additionally, the bank's commitment to maintaining its quarterly dividend at $0.33 per share may have reassured income-focused investors.