PFC Premier Financial Corporation

Declared dividend of $0.31 per share

First Quarter 2024 Highlights

• Deposit average balances up 2.6% annualized
• Earning asset average balances up 1.0% annualized
• Loans/Deposits ratio down 110 basis points
• Non-interest income up 6.0%
• Non-interest expenses down 7% from first quarter 2023 or flat excluding insurance agency expenses
• Delinquent loans down 12% and net charge-offs down 11 basis points to 0.02%
• All regulatory capital ratios up including Tier 1 up 30 basis points to 12.49%

Premier Financial Corp. (Nasdaq: PFC) (“Premier” or the “Company”) announced today 2024 first quarter results. Net income for the first quarter of 2024 was $17.8 million, or $0.50 per diluted common share, compared to $18.1 million, or $0.51 per diluted common share, for the first quarter of 2023.

“Premier’s overall financial performance for the first quarter was generally in line with our expectations,” said Gary Small, President and CEO of Premier. “Many elements of the business are off to a strong start, and there are clearly areas of opportunity to focus on.”

“The commercial business got off to a slow start in January and February as clients seemed to pause to evaluate interest rate expectations, macroeconomic environmental factors, etc.” Small continued. “Our clients showed a preference for using their cash on hand to finance capital expenditures and larger working capital needs versus traditional borrowing habits or drawing down on lines of credit. March saw a return to more typical commercial activity for the bank, with stronger new business numbers and an expanded business pipeline.”

“Our consumer households continue to manage their finances effectively,” continued Small. Delinquencies declined for the quarter, net charge-off levels remain low, and average consumer deposits grew 7.5% annualized from December to March.”

“Overall, we saw very positive average linked quarter deposit growth while average loan totals were flat on a linked quarter basis,” Small continued. “We have projected modest loan and deposit growth for the year and remain confident in our ability to deliver on the full year growth objectives.”

“Non-interest income was boosted by continued strong asset management revenue, and the residential mortgage team posted better than anticipated results,” continued Small. “The ‘new build’ housing market, a strength for the organization, remains active and represented approximately 50% of our origination activity during the quarter. The organization’s quarterly expense run rate was favorable and we anticipate continued favorable expense performance over the course of the year.”

“Credit costs were favorable for the quarter,” added Small. “Net charge-offs are running lower than our initial full year assumption. A strong economy, continued low unemployment, and modest loan growth targets combined with low delinquencies and non-performing asset levels support our expectation for continued favorable credit results.”

Quarterly results

Net interest income and margin

Net interest income of $49.6 million on a tax equivalent (“TE”) basis in the first quarter of 2024 was down 5.6% from $52.6 million in the fourth quarter of 2023 and down 12.0% from $56.3 million in the first quarter of 2023. The TE net interest margin of 2.50% in the first quarter of 2024 decreased 15 basis points from 2.65% in the fourth quarter of 2023 and 40 basis points from 2.90% in the first quarter of 2023. These results are primarily impacted by deposit balance/cost increases and loan balance/yield decreases.

Total deposits increased 2.3% annualized, or $40.3 million, during the first quarter of 2024, due to a $13.5 million increase in customer deposits (up 0.8% annualized) and an increase of $26.8 million in brokered deposits. Total average interest-bearing deposit costs increased 18 basis points to 3.01% for the first quarter of 2024. This increase was primarily due to new customer acquisitions and the migration of customers from non-interest-bearing deposits into interest-bearing deposits, including higher cost time deposits, as customers continue to seek better yields. Total average customer deposit costs including non-interest bearing and excluding brokered deposits and acquisition marks were 2.29% during the month of March, representing a cumulative beta of 40% compared to the change in the monthly average effective Federal Funds rate that increased 525 basis points to 5.33% since December 2021, as reported by the Federal Reserve Economic Data.

Total loans including held-for-sale decreased 3.1% annualized, or $53.8 million, during the first quarter of 2024, primarily due to a $28.8 million decrease in commercial loans and a $15.8 million decrease in mortgage loans including held-for-sale. Total average loan yields decreased two basis points to 5.19% for the first quarter of 2024. This decrease was primarily due to paydowns of floating-rate commercial lines of credit and payoffs of certain higher yielding fixed-rate loans. Total average loan yields excluding PPP, balance sheet hedges and acquisition marks were 5.29% during the month of March (up 5 basis points from 5.24% in December), representing a cumulative beta of 29% compared to the change in the monthly average effective Federal Funds rate for the same period.

“Net interest income remains the most challenging profitability component we face,” said Small. “For the quarter, we experienced a sharper decline than anticipated. There were three primary drivers of the decline: lower commercial non-interest-bearing deposit balances tied to increased client utilization of cash on hand, continued mix migration from lower to higher yielding deposit products, and slightly below plan average loan balances for the quarter. We anticipate recovering a good portion of commercial non-interest-bearing deposit balances as clients rebuild their liquidity, and we expect average loan balances to rebound in the near term. Regarding mix migration, we initiated actions in early March designed to lower our deposit portfolio funding costs. Results to-date have been encouraging, and the effort will be expanded. While Premier’s performance will clearly benefit from future rate cuts initiated by the Federal Reserve, we are committed to managing the business issues within our control to achieve a better outcome today.”

Non-interest income

Total non-interest income in the first quarter of 2024 of $12.5 million was up 6.0% from $11.8 million in the fourth quarter of 2023, and up 61.5% from $7.7 million in the first quarter of 2023, excluding insurance commissions, primarily due to fluctuations in mortgage banking and gains/losses on securities. Mortgage banking income increased $1.5 million on a linked quarter basis and $2.6 million year-over-year, primarily as a result of fluctuations in gain margins and MSR valuation adjustments.

Security losses were $37 thousand in the first quarter of 2024, compared to gains of $675 thousand in the fourth quarter of 2023 and losses of $1.4 million in the first quarter of 2023, primarily due to valuation changes on equity securities. Service fees in the first quarter of 2024 were $6.5 million, a 4.3% decrease from $6.8 million in the fourth quarter of 2023, but a 0.6% increase from $6.4 million in the first quarter of 2023. This change was primarily due to fluctuations in loan fees, including commercial customer swap activity. Due to the insurance agency sale in the second quarter of 2023, there were no insurance commissions in the first quarter of 2024, compared to $4.7 million in the first quarter of 2023. Wealth management income of $1.7 million in the first quarter of 2024 was down slightly from $1.8 million in the fourth quarter of 2023 and 15.4% higher than $1.5 million in the first quarter of 2023. BOLI income of $1.7 million in the first quarter of 2024 included $0.5 million of claim gains, compared to $1.5 million in the fourth quarter of 2023, including $0.5 million of claim gains, and $1.4 million in the first quarter of 2023, including $0.4 million of claim gains.

Non-interest expenses

Non-interest expenses in the first quarter of 2024 were $39.9 million, a 5.3% increase from $37.9 million in the fourth quarter of 2023, but a 6.8% decrease from $42.8 million in the first quarter of 2023. Compensation and benefits were $23.4 million in the first quarter of 2024, compared to $21.0 million in the fourth quarter of 2023 and $25.7 million in the first quarter of 2023. The linked quarter increase was primarily due to annual merit increases and lower deferred costs as a result of lower loan production. The year-over-year decrease was primarily due to the insurance agency sale, partially offset by costs related to higher staffing levels and higher base compensation, including 2024 annual adjustments. Data processing costs were $4.7 million in the first quarter of 2024, compared to $4.7 million in the fourth quarter of 2023 and $3.9 million in the first quarter of 2023, with the year-over-year increase primarily due to the new digital platform launched in October 2023. All other non-interest expenses decreased a net $0.4 million on a linked quarter basis due to cost saving initiatives and decreased a net $1.4 million on a year-over-year basis due to the insurance agency sale and cost saving initiatives. The efficiency ratio for the first quarter of 2024 was 64.2% compared to 59.5% in the fourth quarter of 2023 and 60.9% in the first quarter of 2023.

“Our cost containment efforts continue to be successful with first quarter expenses coming in less than expected,” said Paul Nungester, CFO of Premier. “Similar to 2023, we are committed to cost saving initiatives to help alleviate on-going net interest income challenges.”

Credit quality

Non-performing assets totaled $39.3 million, or 0.46% of assets, at March 31, 2024, an increase from $35.7 million at December 31, 2023, and from $34.8 million at March 31, 2023. Loan delinquencies decreased to $18.3 million, or 0.27% of loans, at March 31, 2024, from $20.9 million at December 31, 2023, but increased from $11.1 million at March 31, 2023. Criticized loans totaled $191.5 million, or 2.78% of loans, as of March 31, 2024, an increase from $186.4 million at December 31, 2023, and from $123.9 million at March 31, 2023.

The 2024 first quarter results include net charge-offs of $0.4 million and a total provision benefit of $0.1 million, compared with net loan charge-offs of $2.5 million and a total provision expense of $3.7 million for the same period in 2023. The change in provision is due to both lower charge-offs and a decrease in loans during the first quarter of 2024 compared to an increase in loans during the first quarter of 2023. The allowance for credit losses as a percentage of total loans was 1.15% at March 31, 2024, compared with 1.14% at December 31, 2023, and 1.13% at March 31, 2023.

Total assets at $8.63 billion

Total assets at March 31, 2024, were $8.63 billion, compared to $8.63 billion at December 31, 2023, and $8.56 billion at March 31, 2023. Loans receivable were $6.69 billion at March 31, 2024, compared to $6.74 billion at December 31, 2023, and $6.58 billion at March 31, 2023. Securities at March 31, 2024, were $1.02 billion, compared to $0.95 billion at December 31, 2023, and $1.00 billion at March 31, 2023. All securities are either AFS or trading and are reflected at fair value on the balance sheet. Also, at March 31, 2024, goodwill and other intangible assets totaled $306.8 million compared to $307.8 million at December 31, 2023, and $335.8 million at March 31, 2023, with the year-over-year decrease primarily due to the insurance agency sale.

Total non-brokered deposits at March 31, 2024, were $6.81 billion, compared with $6.80 billion at December 31, 2023, and $6.62 billion at March 31, 2023. At March 31, 2024, customer deposits increased $13.5 million on a linked quarter basis, or 0.8% annualized. Brokered deposits were $368.8 million at March 31, 2024, compared to $341.9 million at December 31, 2023 and $154.9 million at March 31, 2023. FHLB borrowings declined to $253.0 million at March 31, 2024, from $280.0 million at December 31, 2023, and from $658.0 million at March 31, 2023.

Total stockholders’ equity was $974.3 million at March 31, 2024, compared to $975.6 million at December 31, 2023, and $914.5 million at March 31, 2023. The quarterly decrease in stockholders’ equity was primarily due to a decrease in AOCI, which included $5.3 million for a negative valuation adjustment on the AFS securities portfolio, mostly offset by net earnings after dividends. The year-over-year increase was primarily due to net earnings after dividends including the impact the insurance agency sale offset partially offset by a decrease in AOCI, which included $4.6 million for negative valuation adjustments on the AFS securities portfolio. At March 31, 2024, 1,199,634 common shares remained available for repurchase under the Company’s existing repurchase program.

Regulatory ratios all improved during the first quarter of 2024, including CET1 of 11.99%, Tier 1 of 12.49% and Total Capital of 14.35%. All of these ratios also exceed well-capitalized guidelines pro forma for including accumulated other comprehensive income (“AOCI”), including CET1 of 9.66%, Tier 1 of 10.16% and Total Capital of 12.03%.

“We continue to carefully manage capital levels in light of the current uncertain economic environment,” said Nungester. “Tangible equity was essentially flat from prior quarter with net income offsetting dividends and a decrease in AOCI. Regulatory ratios each increased approximately 30 basis points to further enhance our capital foundation.”

Dividend to be paid May 10

The Board of Directors declared a quarterly cash dividend of $0.31 per common share payable May 10, 2024, to shareholders of record at the close of business on May 3, 2024. The dividend represents an annual dividend of 6.16% percent based on the Premier common stock closing price on April 22, 2024. Premier has approximately 35,814,000 common shares outstanding.

Conference call

Premier will host a conference call at 10:00 a.m. ET on Wednesday, April 24, 2024, to discuss the earnings results and business trends. The conference call may be accessed by calling 1-833-470-1428 and using access code 477589. Internet access to the call is also available (in listen-only mode) at the following URL: https://events.q4inc.com/attendee/254838453. The webcast replay of the conference call will be available at www.PremierFinCorp.com for one year.

About Premier Financial Corp.

Premier Financial Corp. (Nasdaq: PFC), headquartered in Defiance, Ohio, is the holding company for Premier Bank. Premier Bank, headquartered in Youngstown, Ohio, operates 76 branches and 9 loan offices in Ohio, Michigan, Indiana and Pennsylvania and also serves clients through a team of wealth professionals dedicated to each community banking branch. For more information, visit the company’s website at PremierFinCorp.com.

Financial Statements and Highlights Follow-

Safe Harbor Statement

This document may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These statements may include, but are not limited to, statements regarding projections, forecasts, goals and plans of Premier Financial Corp. and its management, future movements of interests, loan or deposit production levels, future credit quality ratios, future strength in the market area, and growth projections. These statements do not describe historical or current facts and may be identified by words such as “intend,” “intent,” “believe,” “expect,” “estimate,” “target,” “plan,” “anticipate,” or similar words or phrases, or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “may,” “can,” or similar verbs. There can be no assurances that the forward-looking statements included in this presentation will prove to be accurate. In light of the significant uncertainties in the forward-looking statements, the inclusion of such information should not be regarded as a representation by Premier or any other persons, that our objectives and plans will be achieved. Forward-looking statements involve numerous risks and uncertainties, any one or more of which could affect Premier’s business and financial results in future periods and could cause actual results to differ materially from plans and projections. These risks and uncertainties include, but not limited to: financial markets, our customers, and our business and results of operation; disruptions in the mortgage market; risks and uncertainties inherent in general and local banking, insurance and mortgage conditions; political uncertainty; uncertainty in U.S. fiscal or monetary policy including interest rate policies of the Federal Reserve; uncertainty concerning or disruptions relating to tensions surrounding the current socioeconomic landscape; competitive factors specific to markets in which Premier and its subsidiaries operate; increasing competition for financial products from other financial institutions and nonbank financial technology companies; future interest rates and changes or volatility in interest rate levels; legislative or regulatory rulemaking or actions; capital market conditions; security breaches or unauthorized disclosure of confidential customer or Company information; interruptions in the effective operation of information and transaction processing systems of Premier or Premier’s vendors and service providers; failures or delays in integrating or adopting new technology; the impact of the cessation of LIBOR interest rates and implementation of a replacement rate; and other risks and uncertainties detailed from time to time in our Securities and Exchange Commission (SEC) filings, including our Annual Report on Form 10-K for the year ended December 31, 2023 and any further amendments thereto. All forward-looking statements made in this presentation are based on information presently available to the management of Premier and speak only as of the date on which they are made. We assume no obligation to update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as may be required by law. As required by U.S. GAAP, Premier will evaluate the impact of subsequent events through the issuance date of its March 31, 2024, consolidated financial statements as part of its Quarterly Report on Form 10-Q to be filed with the SEC. Accordingly, subsequent events could occur that may cause Premier to update its critical accounting estimates and to revise its financial information from that which is contained in this news release.

Non-GAAP Reporting Measures

We believe that net income, as defined by U.S. GAAP, is the most appropriate earnings measurement. However, we consider core net interest income, core net income and core pre-tax pre-provision income to be a useful supplemental measure of our operating performance. We define core net interest income as net interest income on a tax-equivalent basis excluding income from PPP loans and purchase accounting marks accretion. We define core net income as net income excluding the after-tax impact of the insurance agency gain on sale and related transaction costs. We define core pre-tax pre-provision income as pre-tax pre-provision income excluding the pre-tax impact of the insurance agency gain on sale and related transaction costs. We believe that these metrics are useful supplemental measures of operating performance because investors and equity analysts may use these measures to compare the operating performance of the Company between periods or as compared to other financial institutions or other companies on a consistent basis without having to account for income from PPP loans, purchase accounting marks accretion or the insurance agency sale. Our supplemental reporting measures and similarly entitled financial measures are widely used by investors, equity and debt analysts and ratings agencies in the valuation, comparison, rating and investment recommendations of companies. Our management uses these financial measures to facilitate internal and external comparisons to historical operating results and in making operating decisions. Additionally, they are utilized by the Board of Directors to evaluate management. The supplemental reporting measures do not represent net income or cash flow provided from operating activities as determined in accordance with U.S. GAAP and should not be considered as alternative measures of profitability or liquidity. Finally, the supplemental reporting measures, as defined by us, may not be comparable to similarly entitled items reported by other financial institutions or other companies. Please see the exhibits for reconciliations of our supplemental reporting measures.

  Consolidated Balance Sheets (Unaudited) Premier Financial Corp.   March 31, December 31, September 30, June 30, March 31, (in thousands)

 

2024

 

 

2023

 

 

2023

 

 

2023

 

 

2023

 

  Assets Cash and cash equivalents Cash and amounts due from depositories

$

57,956

 

$

81,973

 

$

70,642

 

$

71,096

 

$

68,628

 

Interest-bearing deposits

 

31,725

 

 

32,783

 

 

46,855

 

 

50,631

 

 

88,399

 

 

89,681

 

 

114,756

 

 

117,497

 

 

121,727

 

 

157,027

 

  Available-for-sale, carried at fair value

 

1,014,433

 

 

946,708

 

 

911,184

 

 

961,123

 

 

998,128

 

Equity securities, carried at fair value

 

5,736

 

 

5,773

 

 

5,860

 

 

6,458

 

 

6,387

 

Securities investments

 

1,020,169

 

 

952,481

 

 

917,044

 

 

967,581

 

 

1,004,515

 

  Loans (1)

 

6,693,745

 

 

6,739,387

 

 

6,696,869

 

 

6,708,568

 

 

6,575,829

 

Allowance for credit losses - loans

 

(76,679

)

 

(76,512

)

 

(76,513

)

 

(75,921

)

 

(74,273

)

Loans, net

 

6,617,066

 

 

6,662,875

 

 

6,620,356

 

 

6,632,647

 

 

6,501,556

 

Loans held for sale

 

137,523

 

 

145,641

 

 

135,218

 

 

128,079

 

 

119,604

 

Mortgage servicing rights

 

18,628

 

 

18,696

 

 

19,642

 

 

20,160

 

 

20,654

 

Accrued interest receivable

 

34,795

 

 

33,446

 

 

34,648

 

 

30,056

 

 

29,388

 

Federal Home Loan Bank stock

 

26,075

 

 

21,760

 

 

25,049

 

 

39,887

 

 

37,056

 

Bank Owned Life Insurance

 

182,203

 

 

181,544

 

 

172,906

 

 

171,856

 

 

170,841

 

Office properties and equipment

 

57,231

 

 

56,878

 

 

55,679

 

 

55,736

 

 

55,982

 

Real estate and other assets held for sale

 

255

 

 

243

 

 

387

 

 

561

 

 

393

 

Goodwill

 

295,602

 

 

295,602

 

 

295,602

 

 

295,602

 

 

317,988

 

Core deposit and other intangibles

 

11,196

 

 

12,186

 

 

13,220

 

 

14,298

 

 

17,804

 

Other assets

 

140,630

 

 

129,841

 

 

155,628

 

 

138,021

 

 

129,508

 

Total Assets

$

8,631,054

 

$

8,625,949

 

$

8,562,876

 

$

8,616,211

 

$

8,562,316

 

  Liabilities and Stockholders’ Equity Non-interest-bearing deposits

$

1,467,161

 

$

1,591,979

 

$

1,545,595

 

$

1,573,837

 

$

1,649,726

 

Interest-bearing deposits

 

5,347,444

 

 

5,209,123

 

 

5,127,863

 

 

5,007,358

 

 

4,969,436

 

Brokered deposits

 

368,782

 

 

341,944

 

 

392,181

 

 

413,237

 

 

154,869

 

Total deposits

 

7,183,387

 

 

7,143,046

 

 

7,065,639

 

 

6,994,432

 

 

6,774,031

 

Advances from FHLB

 

253,000

 

 

280,000

 

 

339,000

 

 

455,000

 

 

658,000

 

Subordinated debentures

 

85,261

 

 

85,229

 

 

85,197

 

 

85,166

 

 

85,123

 

Advance payments by borrowers

 

16,861

 

 

23,277

 

 

22,781

 

 

26,045

 

 

26,300

 

Reserve for credit losses - unfunded commitments

 

3,614

 

 

4,307

 

 

4,690

 

 

5,708

 

 

6,577

 

Other liabilities

 

114,590

 

 

114,463

 

 

126,002

 

 

112,889

 

 

97,835

 

Total Liabilities

 

7,656,713

 

 

7,650,322

 

 

7,643,309

 

 

7,679,240

 

 

7,647,866

 

Stockholders’ Equity Preferred stock

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Common stock, net

 

306

 

 

306

 

 

306

 

 

306

 

 

306

 

Additional paid-in-capital

 

689,468

 

 

690,585

 

 

690,038

 

 

689,579

 

 

689,807

 

Accumulated other comprehensive income (loss)

 

(162,081

)

 

(153,719

)

 

(200,282

)

 

(168,721

)

 

(153,709

)

Retained earnings

 

576,648

 

 

569,937

 

 

560,945

 

 

547,336

 

 

510,021

 

Treasury stock, at cost

 

(130,000

)

 

(131,482

)

 

(131,440

)

 

(131,529

)

 

(131,975

)

Total Stockholders’ Equity

 

974,341

 

 

975,627

 

 

919,567

 

 

936,971

 

 

914,450

 

Total Liabilities and Stockholders’ Equity

$

8,631,054

 

$

8,625,949

 

$

8,562,876

 

$

8,616,211

 

$

8,562,316

 

  (1) Includes PPP loans of:

$

417

 

$

469

 

$

526

 

$

577

 

$

791

 

  Consolidated Statements of Income (Unaudited) Premier Financial Corp. Three Months Ended (in thousands, except per share amounts) 3/31/24 12/31/23 9/30/23 6/30/23 3/31/23 Interest Income: Loans

$

87,597

 

$

87,924

 

$

86,612

 

$

81,616

 

$

76,057

 

Investment securities

 

7,602

 

 

7,013

 

 

6,943

 

 

6,997

 

 

7,261

 

Interest-bearing deposits

 

609

 

 

740

 

 

652

 

 

641

 

 

444

 

FHLB stock dividends

 

534

 

 

621

 

 

690

 

 

905

 

 

394

 

Total interest income

 

96,342

 

 

96,298

 

 

94,897

 

 

90,159

 

 

84,156

 

Interest Expense: Deposits

 

42,567

 

 

39,250

 

 

34,874

 

 

26,825

 

 

21,458

 

FHLB advances

 

3,039

 

 

3,328

 

 

4,597

 

 

8,217

 

 

5,336

 

Subordinated debentures

 

1,162

 

 

1,169

 

 

1,162

 

 

1,125

 

 

1,075

 

Notes Payable

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Total interest expense

 

46,768

 

 

43,747

 

 

40,633

 

 

36,167

 

 

27,869

 

Net interest income

 

49,574

 

 

52,551

 

 

54,264

 

 

53,992

 

 

56,287

 

Provision (benefit) for credit losses - loans

 

560

 

 

2,143

 

 

245

 

 

1,410

 

 

3,944

 

Provision (benefit) for credit losses - unfunded commitments

 

(693

)

 

(382

)

 

(1,018

)

 

(870

)

 

(238

)

Total provision (benefit) for credit losses

 

(133

)

 

1,761

 

 

(773

)

 

540

 

 

3,706

 

Net interest income after provision

 

49,707

 

 

50,790

 

 

55,037

 

 

53,452

 

 

52,581

 

Non-interest Income: Service fees and other charges

 

6,467

 

 

6,761

 

 

6,947

 

 

7,190

 

 

6,428

 

Mortgage banking income

 

2,350

 

 

802

 

 

3,274

 

 

2,940

 

 

(274

)

Gain (loss) on sale of non-mortgage loans

 

67

 

 

94

 

 

-

 

 

71

 

 

-

 

Gain (loss) on sale of available for sale securities

 

-

 

 

10

 

 

-

 

 

(7

)

 

34

 

Gain (loss) on equity securities

 

(37

)

 

665

 

 

256

 

 

71

 

 

(1,445

)

Gain on sale of insurance agency

 

-

 

 

-

 

 

-

 

 

36,296

 

 

-

 

Insurance commissions

 

-

 

 

-

 

 

-

 

 

4,131

 

 

4,725

 

Wealth management income

 

1,713

 

 

1,791

 

 

1,509

 

 

1,537

 

 

1,485

 

Income from Bank Owned Life Insurance

 

1,697

 

 

1,532

 

 

1,050

 

 

1,015

 

 

1,417

 

Other non-interest income

 

239

 

 

134

 

 

217

 

 

102

 

 

92

 

Total Non-interest Income

 

12,496

 

 

11,789

 

 

13,253

 

 

53,346

 

 

12,462

 

Non-interest Expense: Compensation and benefits

 

23,394

 

 

20,963

 

 

21,813

 

 

24,175

 

 

25,658

 

Occupancy

 

3,365

 

 

3,318

 

 

3,145

 

 

3,320

 

 

3,574

 

FDIC insurance premium

 

1,120

 

 

1,383

 

 

1,346

 

 

1,786

 

 

1,288

 

Financial institutions tax

 

1,035

 

 

761

 

 

989

 

 

961

 

 

852

 

Data processing

 

4,670

 

 

4,678

 

 

4,010

 

 

3,640

 

 

3,863

 

Amortization of intangibles

 

990

 

 

1,033

 

 

1,078

 

 

1,223

 

 

1,270

 

Transaction costs

 

-

 

 

-

 

 

-

 

 

3,652

 

 

-

 

Other non-interest expense

 

5,326

 

 

5,757

 

 

5,671

 

 

5,738

 

 

6,286

 

Total Non-interest Expense

 

39,900

 

 

37,893

 

 

38,052

 

 

44,495

 

 

42,791

 

Income before income taxes

 

22,303

 

 

24,686

 

 

30,238

 

 

62,303

 

 

22,252

 

Income tax expense

 

4,514

 

 

4,616

 

 

5,551

 

 

13,912

 

 

4,103

 

Net Income

$

17,789

 

$

20,070

 

$

24,687

 

$

48,391

 

$

18,149

 

    Earnings per common share: Basic

$

0.50

 

$

0.56

 

$

0.69

 

$

1.35

 

$

0.51

 

Diluted

$

0.50

 

$

0.56

 

$

0.69

 

$

1.35

 

$

0.51

 

  Average Shares Outstanding: Basic

 

35,772

 

 

35,655

 

 

35,730

 

 

35,722

 

 

35,606

 

Diluted

 

35,771

 

 

35,772

 

 

35,794

 

 

35,800

 

 

35,719

 

  Premier Financial Corp. Selected Quarterly Information Three Months Ended (dollars in thousands, except per share data) 3/31/24 12/31/23 9/30/23 6/30/23 3/31/23 Summary of Operations Tax-equivalent interest income (1)

$

96,417

 

$

96,340

 

$

94,951

 

$

90,226

 

$

84,260

 

Interest expense

 

46,768

 

 

43,747

 

 

40,633

 

 

36,167

 

 

27,869

 

Tax-equivalent net interest income (1)

 

49,649

 

 

52,593

 

 

54,318

 

 

54,059

 

 

56,391

 

Provision expense for credit losses

 

(133

)

 

1,761

 

 

(773

)

 

540

 

 

3,706

 

Non-interest income (ex securities gains/losses)

 

12,533

 

 

11,114

 

 

12,997

 

 

53,282

 

 

13,873

 

Core non-interest income (ex securities gains/losses) (2)

 

12,533

 

 

11,114

 

 

12,997

 

 

16,986

 

 

13,873

 

Non-interest expense

 

39,900

 

 

37,893

 

 

38,052

 

 

44,495

 

 

42,791

 

Core non-interest expense (2)

 

39,900

 

 

37,893

 

 

38,052

 

 

40,843

 

 

42,791

 

Income tax expense

 

4,514

 

 

4,616

 

 

5,551

 

 

13,912

 

 

4,103

 

Net income

 

17,789

 

 

20,070

 

 

24,687

 

 

48,391

 

 

18,149

 

Core net income (2)

 

17,789

 

 

20,070

 

 

24,687

 

 

24,230

 

 

18,149

 

Tax equivalent adjustment (1)

 

75

 

 

42

 

 

54

 

 

67

 

 

104

 

At Period End Total assets

$

8,631,054

 

$

8,625,949

 

$

8,562,876

 

$

8,616,211

 

$

8,562,316

 

Goodwill and intangibles

 

306,798

 

 

307,788

 

 

308,822

 

 

309,900

 

 

335,792

 

Tangible assets (3)

 

8,324,256

 

 

8,318,161

 

 

8,254,054

 

 

8,306,311

 

 

8,226,524

 

Earning assets

 

7,832,558

 

 

7,815,540

 

 

7,744,522

 

 

7,818,825

 

 

7,751,130

 

Loans

 

6,693,745

 

 

6,739,387

 

 

6,696,869

 

 

6,708,568

 

 

6,575,829

 

Allowance for loan losses

 

76,679

 

 

76,512

 

 

76,513

 

 

75,921

 

 

74,273

 

Deposits

 

7,183,387

 

 

7,143,046

 

 

7,065,639

 

 

6,994,432

 

 

6,774,031

 

Stockholders’ equity

 

974,341

 

 

975,627

 

 

919,567

 

 

936,971

 

 

914,450

 

Stockholders’ equity / assets

 

11.29

%

 

11.31

%

 

10.74

%

 

10.87

%

 

10.68

%

Tangible equity (3)

 

667,543

 

 

667,839

 

 

610,745

 

 

627,071

 

 

578,658

 

Tangible equity / tangible assets

 

8.02

%

 

8.03

%

 

7.40

%

 

7.55

%

 

7.03

%

Average Balances Total assets

$

8,591,947

 

$

8,536,193

 

$

8,582,219

 

$

8,597,786

 

$

8,433,100

 

Earning assets

 

7,956,887

 

 

7,936,648

 

 

7,969,363

 

 

7,951,520

 

 

7,783,850

 

Loans

 

6,745,823

 

 

6,754,782

 

 

6,763,232

 

 

6,714,240

 

 

6,535,080

 

Deposits and interest-bearing liabilities

 

7,476,431

 

 

7,447,324

 

 

7,486,595

 

 

7,538,674

 

 

7,385,946

 

Deposits

 

7,144,343

 

 

7,098,265

 

 

7,045,827

 

 

6,799,605

 

 

6,833,521

 

Stockholders’ equity

 

974,560

 

 

930,835

 

 

939,456

 

 

921,441

 

 

901,587

 

Goodwill and intangibles

 

307,226

 

 

308,243

 

 

309,330

 

 

334,862

 

 

336,418

 

Tangible equity (3)

 

667,334

 

 

622,592

 

 

630,126

 

 

586,579

 

 

565,169

 

Per Common Share Data Earnings per share ("EPS") - Basic

$

0.50

 

$

0.56

 

$

0.69

 

$

1.35

 

$

0.51

 

EPS - Diluted

 

0.50

 

 

0.56

 

 

0.69

 

 

1.35

 

 

0.51

 

EPS - Core diluted (2)

 

0.50

 

 

0.56

 

 

0.69

 

 

0.68

 

 

0.51

 

Dividends Paid

 

0.31

 

 

0.31

 

 

0.31

 

 

0.31

 

 

0.31

 

Market Value: High

$

24.50

 

$

24.87

 

$

22.89

 

$

21.01

 

$

27.80

 

Low

 

18.68

 

 

15.79

 

 

15.70

 

 

13.60

 

 

20.39

 

Close

 

20.30

 

 

24.10

 

 

17.06

 

 

16.02

 

 

20.73

 

Common Book Value

 

27.20

 

 

27.31

 

 

25.74

 

 

26.23

 

 

25.61

 

Tangible Common Book Value (3)

 

18.64

 

 

18.69

 

 

17.09

 

 

17.55

 

 

16.21

 

Shares outstanding, end of period (000s)

 

35,817

 

 

35,730

 

 

35,731

 

 

35,727

 

 

35,701

 

Performance Ratios (annualized) Tax-equivalent net interest margin (1)

 

2.50

%

 

2.65

%

 

2.73

%

 

2.72

%

 

2.90

%

Return on average assets

 

0.83

%

 

0.93

%

 

1.14

%

 

2.26

%

 

0.86

%

Core return on average assets (2)

 

0.83

%

 

0.93

%

 

1.14

%

 

1.13

%

 

0.86

%

Return on average equity

 

7.34

%

 

8.55

%

 

10.43

%

 

21.06

%

 

8.07

%

Core return on average equity (2)

 

7.34

%

 

8.55

%

 

10.43

%

 

10.55

%

 

8.07

%

Return on average tangible equity

 

10.72

%

 

12.79

%

 

15.54

%

 

33.09

%

 

12.88

%

Core return on average tangible equity (2)

 

10.72

%

 

12.79

%

 

15.54

%

 

16.57

%

 

10.51

%

Efficiency ratio (4)

 

64.17

%

 

59.48

%

 

56.53

%

 

41.45

%

 

60.90

%

Core efficiency ratio (2)

 

64.17

%

 

59.48

%

 

56.53

%

 

57.49

%

 

60.90

%

Non-interest expenses / average assets

 

1.87

%

 

1.76

%

 

1.76

%

 

2.08

%

 

2.06

%

Core non-interest expenses / average assets

 

1.87

%

 

1.76

%

 

1.76

%

 

1.91

%

 

2.06

%

Effective tax rate

 

20.24

%

 

18.70

%

 

18.36

%

 

22.33

%

 

18.44

%

Common dividend payout ratio

 

62.00

%

 

55.36

%

 

44.93

%

 

22.96

%

 

60.78

%

(1) Interest income on tax-exempt securities and loans has been adjusted to a tax-equivalent basis using the statutory federal income tax rate of 21%. (2) Core items exclude the impact of insurance agency disposition related items. See non-GAAP reconciliations. (3) Tangible assets = total assets less the sum of goodwill and core deposit and other intangibles. Tangible equity = total stockholders' equity less the sum of goodwill, core deposit and other intangibles, and preferred stock. Tangible common book value = tangible equity divided by shares outstanding at the end of the period. (4) Efficiency ratio = Non-interest expense divided by sum of tax-equivalent net interest income plus non-interest income, excluding securities gains or losses, net.   Premier Financial Corp. Yield Analysis (dollars in thousands) Three Months Ended 3/31/24 12/31/23 9/30/23 6/30/23 3/31/23 Average Balances Interest-earning assets: Loans receivable (1)

$

6,745,823

 

$

6,754,782

 

$

6,763,232

 

$

6,714,240

 

$

6,535,080

 

Securities

 

1,152,346

 

 

1,121,231

 

 

1,137,730

 

 

1,155,451

 

 

1,190,359

 

Interest Bearing Deposits

 

34,924

 

 

36,761

 

 

38,210

 

 

36,730

 

 

35,056

 

FHLB stock

 

23,794

 

 

23,874

 

 

30,191

 

 

45,099

 

 

30,353

 

Total interest-earning assets

 

7,956,887

 

 

7,936,648

 

 

7,969,363

 

 

7,951,520

 

 

7,790,848

 

Non-interest-earning assets

 

635,060

 

 

599,545

 

 

612,856

 

 

646,266

 

 

642,252

 

Total assets

$

8,591,947

 

$

8,536,193

 

$

8,582,219

 

$

8,597,786

 

$

8,433,100

 

Deposits and Interest-bearing Liabilities: Interest bearing deposits

$

5,650,823

 

$

5,541,498

 

$

5,490,945

 

$

5,195,727

 

$

5,078,510

 

FHLB advances and other

 

246,846

 

 

263,848

 

 

355,576

 

 

653,923

 

 

467,311

 

Subordinated debentures

 

85,242

 

 

85,211

 

 

85,179

 

 

85,146

 

 

85,114

 

Notes payable

 

-

 

 

-

 

 

13

 

 

-

 

 

-

 

Total interest-bearing liabilities

 

5,982,911

 

 

5,890,557

 

 

5,931,713

 

 

5,934,796

 

 

5,630,935

 

Non-interest bearing deposits

 

1,493,520

 

 

1,556,767

 

 

1,554,882

 

 

1,603,878

 

 

1,755,011

 

Total including non-interest-bearing deposits

 

7,476,431

 

 

7,447,324

 

 

7,486,595

 

 

7,538,674

 

 

7,385,946

 

Other non-interest-bearing liabilities

 

140,956

 

 

158,034

 

 

156,168

 

 

137,671

 

 

145,567

 

Total liabilities

 

7,617,387

 

 

7,605,358

 

 

7,642,763

 

 

7,676,345

 

 

7,531,513

 

Stockholders' equity

 

974,560

 

 

930,835

 

 

939,456

 

 

921,441

 

 

901,587

 

Total liabilities and stockholders' equity

$

8,591,947

 

$

8,536,193

 

$

8,582,219

 

$

8,597,786

 

$

8,433,100

 

IEAs/IBLs

 

133

%

 

135

%

 

134

%

 

134

%

 

138

%

  Interest Income/Expense Interest-earning assets: Loans receivable (2)

$

87,603

 

$

87,929

 

$

86,618

 

$

81,622

 

$

76,063

 

Securities (2)

 

7,671

 

 

7,050

 

 

6,991

 

 

7,058

 

 

7,359

 

Interest Bearing Deposits

 

609

 

 

740

 

 

652

 

 

641

 

 

444

 

FHLB stock

 

534

 

 

621

 

 

690

 

 

905

 

 

394

 

Total interest-earning assets

 

96,417

 

 

96,340

 

 

94,951

 

 

90,226

 

 

84,260

 

Deposits and Interest-bearing Liabilities: Interest bearing deposits

$

42,567

 

$

39,250

 

$

34,874

 

$

26,825

 

$

21,458

 

FHLB advances and other

 

3,039

 

 

3,328

 

 

4,597

 

 

8,217

 

 

5,336

 

Subordinated debentures

 

1,162

 

 

1,169

 

 

1,162

 

 

1,125

 

 

1,075

 

Notes payable

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Total interest-bearing liabilities

 

46,768

 

 

43,747

 

 

40,633

 

 

36,167

 

 

27,869

 

Non-interest bearing deposits

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Total including non-interest-bearing deposits

 

46,768

 

 

43,747

 

 

40,633

 

 

36,167

 

 

27,869

 

Net interest income

$

49,649

 

$

52,593

 

$

54,318

 

$

54,059

 

$

56,391

 

  Annualized Average Rates Interest-earning assets: Loans receivable

 

5.19

%

 

5.21

%

 

5.12

%

 

4.86

%

 

4.66

%

Securities (3)

 

2.66

%

 

2.52

%

 

2.46

%

 

2.44

%

 

2.47

%

Interest Bearing Deposits

 

6.98

%

 

8.05

%

 

6.83

%

 

6.98

%

 

5.07

%

FHLB stock

 

8.98

%

 

10.40

%

 

9.14

%

 

8.03

%

 

5.19

%

Total interest-earning assets

 

4.85

%

 

4.86

%

 

4.77

%

 

4.54

%

 

4.33

%

Deposits and Interest-bearing Liabilities: Interest bearing deposits

 

3.01

%

 

2.83

%

 

2.54

%

 

2.07

%

 

1.69

%

FHLB advances and other

 

4.92

%

 

5.05

%

 

5.17

%

 

5.03

%

 

4.57

%

Subordinated debentures

 

5.45

%

 

5.49

%

 

5.46

%

 

5.29

%

 

5.05

%

Notes payable

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Total interest-bearing liabilities

 

3.13

%

 

2.97

%

 

2.74

%

 

2.44

%

 

1.98

%

Non-interest bearing deposits

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Total including non-interest-bearing deposits

 

2.50

%

 

2.35

%

 

2.17

%

 

1.92

%

 

1.51

%

Net interest spread

 

1.72

%

 

1.89

%

 

2.03

%

 

2.10

%

 

2.35

%

Net interest margin (4)

 

2.50

%

 

2.65

%

 

2.73

%

 

2.72

%

 

2.90

%

  (1) Includes average PPP loans of:

$

442

 

$

495

 

$

553

 

$

673

 

$

965

 

(2) Interest on certain tax exempt loans and securities is not taxable for Federal income tax purposes. In order to compare the tax-exempt yields on these assets to taxable yields, the interest earned on these assets is adjusted to a pre-tax equivalent amount based on the marginal corporate federal income tax rate of 21%. (3) Securities yield = annualized interest income divided by the average balance of securities, excluding average unrealized gains/losses. (4) Net interest margin is tax equivalent net interest income divided by average interest-earning assets.   Premier Financial Corp. Deposits and Liquidity (dollars in thousands) As of and for the Three Months Ended 3/31/24 12/31/23 9/30/23 6/30/23 3/31/23 Ending Balances Non-interest-bearing demand deposits

$

1,467,161

 

$

1,591,979

 

$

1,545,595

 

$

1,573,837

 

$

1,649,726

 

Savings deposits

 

656,122

 

 

677,679

 

 

709,938

 

 

748,392

 

 

775,186

 

Interest-bearing demand deposits

 

553,331

 

 

565,757

 

 

580,069

 

 

594,325

 

 

646,329

 

Money market account deposits

 

1,426,809

 

 

1,374,526

 

 

1,279,551

 

 

1,282,721

 

 

1,342,451

 

Time deposits

 

1,051,955

 

 

998,002

 

 

925,353

 

 

904,717

 

 

856,720

 

Public funds, ICS and CDARS deposits

 

1,659,227

 

 

1,593,159

 

 

1,632,952

 

 

1,477,203

 

 

1,348,750

 

Brokered deposits

 

368,782

 

 

341,944

 

 

392,181

 

 

413,237

 

 

154,869

 

Total deposits

$

7,183,387

 

$

7,143,046

 

$

7,065,639

 

$

6,994,432

 

$

6,774,031

 

  Average Balances Non-interest-bearing demand deposits

$

1,493,520

 

$

1,556,767

 

$

1,554,882

 

$

1,603,878

 

$

1,755,011

 

Savings deposits

 

663,786

 

 

691,295

 

 

728,545

 

 

762,074

 

 

782,215

 

Interest-bearing demand deposits

 

547,168

 

 

557,210

 

 

575,744

 

 

603,572

 

 

637,423

 

Money market account deposits

 

1,411,075

 

 

1,331,623

 

 

1,278,381

 

 

1,311,177

 

 

1,430,905

 

Time deposits

 

1,025,946

 

 

959,420

 

 

912,579

 

 

872,991

 

 

825,652

 

Public funds, ICS and CDARS deposits

 

1,618,554

 

 

1,614,339

 

 

1,573,213

 

 

1,399,749

 

 

1,232,230

 

Brokered deposits

 

384,294

 

 

387,611

 

 

422,483

 

 

246,164

 

 

170,085

 

Total deposits

$

7,144,343

 

$

7,098,265

 

$

7,045,827

 

$

6,799,605

 

$

6,833,521

 

  Average Rates Non-interest-bearing demand deposits

 

0.00

%

 

0.00

%

 

0.00

%

 

0.00

%

 

0.00

%

Savings deposits

 

0.03

%

 

0.03

%

 

0.03

%

 

0.02

%

 

0.02

%

Interest-bearing demand deposits

 

0.12

%

 

0.13

%

 

0.11

%

 

0.10

%

 

0.07

%

Money market account deposits

 

2.83

%

 

2.65

%

 

2.02

%

 

1.73

%

 

1.54

%

Time deposits

 

3.55

%

 

3.15

%

 

2.68

%

 

2.27

%

 

1.83

%

Public funds, ICS and CDARS deposits

 

4.48

%

 

4.30

%

 

4.18

%

 

3.71

%

 

3.32

%

Brokered deposits

 

5.33

%

 

5.46

%

 

5.36

%

 

4.92

%

 

4.19

%

Total deposits

 

2.38

%

 

2.21

%

 

1.98

%

 

1.58

%

 

1.26

%

  Other Deposits Data Loans/Deposits Ratio

 

93.2

%

 

94.3

%

 

94.8

%

 

95.9

%

 

97.1

%

Uninsured deposits %

 

32.6

%

 

33.1

%

 

32.8

%

 

31.5

%

 

32.3

%

Adjusted uninsured deposits % (1)

 

17.6

%

 

18.9

%

 

17.7

%

 

17.3

%

 

19.6

%

Top 20 depositors %

 

14.0

%

 

13.9

%

 

14.1

%

 

12.4

%

 

12.1

%

Public funds %

 

18.5

%

 

17.9

%

 

18.8

%

 

17.5

%

 

16.5

%

Average account size (excluding brokered)

$

27.0

 

$

26.9

 

$

27.1

 

$

26.7

 

$

27.0

 

  Securities Data Held-to-maturity (HTM) at fair value

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

Available-for-sale (AFS) at fair value (2)

 

1,014,433

 

 

946,708

 

 

911,184

 

 

961,123

 

 

998,128

 

Equity investment at fair value (3)

 

5,736

 

 

5,773

 

 

5,860

 

 

6,458

 

 

6,387

 

Total securities at fair value

$

1,020,169

 

$

952,481

 

$

917,044

 

$

967,581

 

$

1,004,515

 

Cash+Securities/Assets

 

12.9

%

 

12.4

%

 

12.1

%

 

12.6

%

 

13.6

%

Projected AFS cash flow in next 12 months

$

89,563

 

$

69,067

 

$

66,495

 

$

64,687

 

$

73,184

 

AFS average life (years)

 

5.3

 

 

6.2

 

 

6.5

 

 

6.5

 

 

6.4

 

  Liquidity Sources Cash and cash equivalents

$

89,681

 

$

114,756

 

$

117,497

 

$

121,727

 

$

157,027

 

Unpledged securities at fair value

 

398,610

 

 

314,385

 

 

280,916

 

 

298,471

 

 

211,468

 

FHLB borrowing capacity

 

1,383,086

 

 

1,336,707

 

 

1,311,091

 

 

1,542,459

 

 

1,358,650

 

Brokered deposits

 

491,447

 

 

513,767

 

 

316,697

 

 

288,719

 

 

524,889

 

Bank and parent lines of credit

 

70,000

 

 

70,000

 

 

70,000

 

 

70,000

 

 

70,000

 

Federal Reserve - Discount Window and BTFP (4)

 

680,456

 

 

620,518

 

 

471,395

 

 

491,141

 

 

129,918

 

Total

$

3,113,280

 

$

2,970,133

 

$

2,567,596

 

$

2,812,517

 

$

2,451,952

 

Total liquidity to adjusted uninsured deposits ratio

 

244.7

%

 

218.3

%

 

204.0

%

 

230.5

%

 

183.2

%

  (1) Adjusted for collateralized deposits, other insured deposits and intra-company accounts. (2) Mark-to-market included in accumulated other comprehensive income. (3) Mark-to-market included in net income each quarter. (4) Includes capacity related to unpledged securities at par value in excess of fair value under Bank Term Funding Program prior to 3/31/24.   Premier Financial Corp. Loans and Capital (dollars in thousands) 3/31/24 12/31/23 9/30/23 6/30/23 3/31/23 Loan Portfolio Composition Residential real estate

$

1,816,416

 

$

1,810,265

 

$

1,797,676

 

$

1,711,632

 

$

1,624,331

 

Residential real estate construction

 

15,009

 

 

28,794

 

 

51,637

 

 

111,708

 

 

141,209

 

Total residential loans

 

1,831,425

 

 

1,839,059

 

 

1,849,313

 

 

1,823,340

 

 

1,765,540

 

  Commercial real estate

 

2,830,086

 

 

2,839,905

 

 

2,820,410

 

 

2,848,410

 

 

2,813,441

 

Commercial construction

 

535,294

 

 

528,563

 

 

502,502

 

 

472,328

 

 

440,510

 

Commercial excluding PPP

 

1,030,620

 

 

1,056,334

 

 

1,038,939

 

 

1,068,795

 

 

1,060,351

 

Core commercial loans (1)

 

4,396,000

 

 

4,424,802

 

 

4,361,851

 

 

4,389,533

 

 

4,314,302

 

  Consumer direct/indirect

 

187,664

 

 

193,830

 

 

203,800

 

 

210,390

 

 

212,299

 

Home equity and improvement lines

 

265,362

 

 

267,960

 

 

269,053

 

 

272,792

 

 

271,676

 

Total consumer loans

 

453,026

 

 

461,790

 

 

472,853

 

 

483,182

 

 

483,975

 

  Deferred loan origination fees

 

12,877

 

 

13,267

 

 

12,326

 

 

11,936

 

 

11,221

 

Core loans (1)

 

6,693,328

 

 

6,738,918

 

 

6,696,343

 

 

6,707,991

 

 

6,575,038

 

PPP loans

 

417

 

 

469

 

 

526

 

 

577

 

 

791

 

Total loans

$

6,693,745

 

$

6,739,387

 

$

6,696,869

 

$

6,708,568

 

$

6,575,829

 

  Loans held for sale

$

137,523

 

$

145,641

 

$

135,218

 

$

128,079

 

$

119,631

 

Core residential loans (1)

 

1,968,948

 

 

1,984,700

 

 

1,984,531

 

 

1,951,419

 

 

1,885,171

 

Total loans including loans held for sale but excluding PPP

 

6,830,851

 

 

6,884,559

 

 

6,831,561

 

 

6,836,070

 

 

6,694,669

 

  Undisbursed construction loan funds - residential

$

57,246

 

$

72,748

 

$

82,689

 

$

102,198

 

$

157,934

 

Undisbursed construction loan funds - commercial

 

151,677

 

 

208,718

 

 

284,610

 

 

353,455

 

 

446,294

 

Undisbursed construction loan funds - total

 

208,923

 

 

281,466

 

 

367,299

 

 

455,653

 

 

604,228

 

Total construction loans including undisbursed funds

$

759,226

 

$

838,823

 

$

921,438

 

$

1,039,689

 

$

1,185,947

 

Gross loans (2)

$

6,889,791

 

$

7,007,586

 

$

7,051,842

 

$

7,152,285

 

$

7,168,836

 

  Fixed rate loans %

 

49.0

%

 

49.3

%

 

49.8

%

 

49.8

%

 

49.5

%

Floating rate loans %

 

16.5

%

 

15.6

%

 

15.8

%

 

15.9

%

 

13.4

%

Adjustable rate loans repricing within 1 year %

 

3.4

%

 

3.4

%

 

2.9

%

 

1.5

%

 

2.0

%

Adjustable rate loans repricing over 1 year %

 

31.1

%

 

31.7

%

 

31.5

%

 

32.8

%

 

35.1

%

  Commercial Real Estate Loans Composition Non owner occupied excluding office

$

1,026,598

 

$

1,027,801

 

$

1,023,585

 

$

1,012,400

 

$

947,442

 

Non owner occupied office

 

189,436

 

 

205,302

 

 

207,869

 

 

225,046

 

 

220,668

 

Owner occupied excluding office

 

656,825

 

 

653,849

 

 

597,303

 

 

603,650

 

 

609,203

 

Owner occupied office

 

112,706

 

 

113,679

 

 

106,761

 

 

107,240

 

 

109,014

 

Multifamily

 

652,371

 

 

642,651

 

 

627,602

 

 

633,909

 

 

661,996

 

Agriculture land

 

121,102

 

 

121,544

 

 

119,710

 

 

123,104

 

 

122,384

 

Other commercial real estate

 

71,048

 

 

75,079

 

 

137,580

 

 

143,061

 

 

142,734

 

Total commercial real estate loans

$

2,830,086

 

$

2,839,905

 

$

2,820,410

 

$

2,848,410

 

$

2,813,441

 

  Capital Balances Total equity

$

974,341

 

$

975,627

 

$

919,567

 

$

936,971

 

$

914,450

 

Less: Regulatory goodwill and intangibles

 

301,716

 

 

302,706

 

 

303,740

 

 

304,818

 

 

330,711

 

Less: Accumulated other comprehensive income/(loss) ("AOCI")

 

(162,081

)

 

(153,719

)

 

(200,282

)

 

(168,721

)

 

(153,709

)

Common equity tier 1 capital ("CET1")

 

834,706

 

 

826,640

 

 

816,109

 

 

800,874

 

 

737,448

 

Add: Tier 1 subordinated debt

 

35,000

 

 

35,000

 

 

35,000

 

 

35,000

 

 

35,000

 

Tier 1 capital

 

869,706

 

 

861,640

 

 

851,109

 

 

835,874

 

 

772,448

 

Add: Regulatory allowances

 

79,827

 

 

80,231

 

 

80,791

 

 

80,812

 

 

80,003

 

Add: Tier 2 subordinated debt

 

50,000

 

 

50,000

 

 

50,000

 

 

50,000

 

 

50,000

 

Total risk-based capital

$

999,533

 

$

991,871

 

$

981,900

 

$

966,686

 

$

902,451

 

  Total risk-weighted assets

$

6,964,156

 

$

7,066,743

 

$

7,329,471

 

$

7,381,940

 

$

7,370,704

 

  Capital Ratios CET1 Ratio

 

11.99

%

 

11.70

%

 

11.13

%

 

10.85

%

 

10.01

%

CET1 Ratio including AOCI

 

9.66

%

 

9.52

%

 

8.40

%

 

8.56

%

 

7.92

%

Tier 1 Capital Ratio

 

12.49

%

 

12.19

%

 

11.61

%

 

11.32

%

 

10.48

%

Tier 1 Capital Ratio including AOCI

 

10.16

%

 

10.02

%

 

8.88

%

 

9.04

%

 

8.39

%

Total Capital Ratio

 

14.35

%

 

14.04

%

 

13.39

%

 

13.10

%

 

12.24

%

Total Capital Ratio including AOCI

 

12.03

%

 

11.86

%

 

10.66

%

 

10.81

%

 

10.16

%

  (1) Core loans represents total loans excluding undisbursed loan funds, deferred loan origination fees and PPP loans. Core commercial loans represents total commercial real estate, commercial and commercial construction excluding commercial undisbursed loan funds, deferred loan origination fees and PPP loans. Core residential loans represents total loans held for sale, one to four family residential real estate and residential construction excluding residential undisbursed loan funds and deferred loan origination fees. (2) Gross loans represent total loans including undisbursed construction funds but excluding deferred loan origination fees. Premier Financial Corp. Loan Delinquency Information (dollars in thousands) Total Balance Current 30 to 89 days past due % of Total Non Accrual Loans % of Total   March 31, 2024 One to four family residential real estate

$

1,816,416

$

1,797,169

$

5,834

0.32

%

$

13,413

0.74

%

Construction

 

759,226

 

759,226

 

-

0.00

%

 

-

0.00

%

Commercial real estate

 

2,830,086

 

2,821,750

 

1,083

0.04

%

 

7,253

0.26

%

Commercial

 

1,031,037

 

1,013,857

 

4,440

0.43

%

 

12,740

1.24

%

Home equity and improvement

 

265,362

 

260,683

 

2,613

0.98

%

 

2,066

0.78

%

Consumer finance

 

187,664

 

179,741

 

4,364

2.33

%

 

3,559

1.90

%

Gross loans

$

6,889,791

$

6,832,426

$

18,334

0.27

%

$

39,031

0.57

%

  December 31, 2023 One to four family residential real estate

$

1,810,265

$

1,785,935

$

9,429

0.52

%

$

14,901

0.82

%

Construction

 

838,823

 

838,715

 

108

0.01

%

 

-

0.00

%

Commercial real estate

 

2,839,905

 

2,833,233

 

475

0.02

%

 

6,197

0.22

%

Commercial

 

1,056,803

 

1,045,185

 

2,623

0.25

%

 

8,995

0.85

%

Home equity and improvement

 

267,960

 

263,134

 

2,887

1.08

%

 

1,939

0.72

%

Consumer finance

 

193,830

 

185,041

 

5,330

2.75

%

 

3,459

1.78

%

Gross loans

$

7,007,586

$

6,951,243

$

20,852

0.30

%

$

35,491

0.51

%

  March 31, 2023 One to four family residential real estate

$

1,624,331

$

1,611,658

$

4,514

0.28

%

$

8,159

0.50

%

Construction

 

1,185,947

 

1,185,803

 

144

0.01

%

 

-

0.00

%

Commercial real estate

 

2,813,441

 

2,799,007

 

88

0.00

%

 

14,346

0.51

%

Commercial

 

1,061,142

 

1,053,681

 

471

0.04

%

 

6,990

0.66

%

Home equity and improvement

 

271,676

 

266,931

 

2,404

0.88

%

 

2,341

0.86

%

Consumer finance

 

212,299

 

206,247

 

3,511

1.65

%

 

2,541

1.20

%

Gross loans

$

7,168,836

$

7,123,327

$

11,132

0.16

%

$

34,377

0.48

%

  Loan Risk Ratings Information (dollars in thousands) Total Balance Pass Rated Special Mention % of Total Classified % of Total   March 31, 2024 One to four family residential real estate

$

1,806,724

$

1,794,030

$

487

0.03

%

$

12,207

0.68

%

Construction

 

759,226

 

751,726

 

7,500

0.99

%

 

-

0.00

%

Commercial real estate

 

2,828,138

 

2,749,206

 

53,456

1.89

%

 

25,476

0.90

%

Commercial

 

1,027,101

 

945,049

 

32,487

3.16

%

 

49,565

4.83

%

Home equity and improvement

 

263,897

 

262,046

 

-

0.00

%

 

1,851

0.70

%

Consumer finance

 

187,501

 

184,214

 

-

0.00

%

 

3,287

1.75

%

PCD loans

 

17,204

 

12,006

 

2,485

14.44

%

 

2,713

15.77

%

Gross loans

$

6,889,791

$

6,698,277

$

96,415

1.40

%

$

95,099

1.38

%

  December 31, 2023 One to four family residential real estate

$

1,800,383

$

1,785,839

$

594

0.03

%

$

13,950

0.77

%

Construction

 

838,823

 

831,333

 

7,490

0.89

%

 

-

0.00

%

Commercial real estate

 

2,837,865

 

2,760,804

 

50,784

1.79

%

 

26,277

0.93

%

Commercial

 

1,054,834

 

975,264

 

57,634

5.46

%

 

21,936

2.08

%

Home equity and improvement

 

266,082

 

264,664

 

-

0.00

%

 

1,418

0.53

%

Consumer finance

 

193,626

 

190,393

 

-

0.00

%

 

3,233

1.67

%

PCD loans

 

15,973

 

12,899

 

197

1.23

%

 

2,877

18.01

%

Gross loans

$

7,007,586

$

6,821,196

$

116,699

1.67

%

$

69,691

0.99

%

  March 31, 2023 One to four family residential real estate

$

1,612,999

$

1,604,694

$

493

0.03

%

$

7,812

0.48

%

Construction

 

1,185,947

 

1,185,947

 

-

0.00

%

 

-

0.00

%

Commercial real estate

 

2,811,999

 

2,748,598

 

41,677

1.48

%

 

21,724

0.77

%

Commercial

 

1,055,829

 

1,015,416

 

33,090

3.13

%

 

7,323

0.69

%

Home equity and improvement

 

269,455

 

267,588

 

-

0.00

%

 

1,867

0.69

%

Consumer finance

 

212,043

 

209,566

 

-

0.00

%

 

2,477

1.17

%

PCD loans

 

20,564

 

13,177

 

3,683

17.91

%

 

3,704

18.01

%

Gross loans

$

7,168,836

$

7,044,986

$

78,943

1.10

%

$

44,907

0.63

%

    Premier Financial Corp. Mortgage and Credit Information (dollars in thousands) As of and for the Three Months Ended Mortgage Banking Summary 3/31/24 12/31/23 9/30/23 6/30/23 3/31/23 Revenue from sales and servicing of mortgage loans: Mortgage banking gains, net

$

1,283

 

$

439

 

$

2,584

 

$

2,242

 

$

(837

)

Mortgage loan servicing revenue (expense): Mortgage loan servicing revenue

 

1,842

 

 

1,844

 

 

1,850

 

 

1,845

 

 

1,888

 

Amortization of mortgage servicing rights

 

(1,238

)

 

(1,257

)

 

(1,291

)

 

(1,277

)

 

(1,219

)

Mortgage servicing rights valuation adjustments

 

463

 

 

(224

)

 

131

 

 

130

 

 

(106

)

 

1,067

 

 

363

 

 

690

 

 

698

 

 

563

 

Total revenue from sale/servicing of mortgage loans

$

2,350

 

$

802

 

$

3,274

 

$

2,940

 

$

(274

)

  Mortgage servicing rights: Balance at beginning of period

$

19,452

 

$

20,174

 

$

20,823

 

$

21,447

 

$

21,858

 

Loans sold, servicing retained

 

707

 

 

535

 

 

642

 

 

653

 

 

808

 

Amortization

 

(1,238

)

 

(1,257

)

 

(1,291

)

 

(1,277

)

 

(1,219

)

Balance at end of period

 

18,921

 

 

19,452

 

 

20,174

 

 

20,823

 

 

21,447

 

Valuation allowance: Balance at beginning of period

 

(756

)

 

(532

)

 

(663

)

 

(793

)

 

(687

)

Impairment recovery (charges)

 

463

 

 

(224

)

 

131

 

 

130

 

 

(106

)

Balance at end of period

 

(293

)

 

(756

)

 

(532

)

 

(663

)

 

(793

)

Net carrying value at end of period

$

18,628

 

$

18,696

 

$

19,642

 

$

20,160

 

$

20,654

 

  Allowance for credit losses - loans Beginning allowance

$

76,512

 

$

76,513

 

$

75,921

 

$

74,273

 

$

72,816

 

Provision (benefit) for credit losses - loans

 

560

 

 

2,143

 

 

245

 

 

1,410

 

 

3,944

 

Net recoveries (charge-offs)

 

(393

)

 

(2,144

)

 

347

 

 

238

 

 

(2,487

)

Ending allowance

$

76,679

 

$

76,512

 

$

76,513

 

$

75,921

 

$

74,273

 

  Total loans

$

6,693,745

 

$

6,739,387

 

$

6,696,869

 

$

6,708,568

 

$

6,575,829

 

Less: PPP loans

 

(417

)

 

(469

)

 

(526

)

 

(577

)

 

(791

)

Total loans ex PPP

$

6,693,328

 

$

6,738,918

 

$

6,696,343

 

$

6,707,991

 

$

6,575,038

 

  Allowance for credit losses (ACL)

$

76,679

 

$

76,512

 

$

76,513

 

$

75,921

 

$

74,273

 

Add: Unaccreted purchase accounting marks

 

889

 

 

1,160

 

 

1,526

 

 

1,901

 

 

2,301

 

Adjusted ACL

$

77,568

 

$

77,672

 

$

78,039

 

$

77,822

 

$

76,574

 

ACL/Loans

 

1.15

%

 

1.14

%

 

1.14

%

 

1.13

%

 

1.13

%

Adjusted ACL/Loans ex PPP

 

1.16

%

 

1.15

%

 

1.17

%

 

1.16

%

 

1.16

%

  Credit Quality Total non-performing loans (1)

$

39,031

 

$

35,491

 

$

39,463

 

$

36,991

 

$

34,377

 

Real estate owned (REO)

 

255

 

 

243

 

 

387

 

 

561

 

 

393

 

Total non-performing assets (2)

$

39,286

 

$

35,734

 

$

39,850

 

$

37,552

 

$

34,770

 

Net charge-offs (recoveries)

 

393

 

 

2,144

 

 

(347

)

 

(238

)

 

2,487

 

  Allowance for credit losses / non-performing assets

 

195.18

%

 

214.12

%

 

192.00

%

 

202.18

%

 

213.61

%

Allowance for credit losses / non-performing loans

 

196.46

%

 

215.58

%

 

193.89

%

 

205.24

%

 

216.05

%

Non-performing assets / loans plus REO

 

0.59

%

 

0.53

%

 

0.60

%

 

0.56

%

 

0.53

%

Non-performing assets / total assets

 

0.46

%

 

0.41

%

 

0.47

%

 

0.44

%

 

0.41

%

Net charge-offs (recoveries) / average loans

 

0.02

%

 

0.13

%

 

-0.02

%

 

-0.01

%

 

0.15

%

Net charge-offs (recoveries) / average loans LTM

 

0.03

%

 

0.06

%

 

0.04

%

 

0.14

%

 

0.14

%

  (1) Non-performing loans consist of non-accrual loans. (2) Non-performing assets are non-performing loans plus real estate and other assets acquired by foreclosure or deed-in-lieu thereof.   Premier Financial Corp. Non-GAAP Reconciliations Three Months Ended (In thousands, except per share and ratio data) 3/31/24 12/31/23 9/30/23 6/30/23 3/31/23 Total non-interest expenses

$

39,900

 

$

37,893

 

$

38,052

 

$

44,495

 

$

42,791

 

Less: Transaction costs (pre-tax)

 

-

 

 

-

 

 

-

 

 

3,652

 

 

-

 

Core non-interest expenses

$

39,900

 

$

37,893

 

$

38,052

 

$

40,843

 

$

42,791

 

Average total assets

$

8,591,947

 

$

8,536,193

 

$

8,582,219

 

$

8,597,786

 

$

8,433,100

 

Core non-interest expenses / average assets

 

1.87

%

 

1.76

%

 

1.76

%

 

1.91

%

 

2.06

%

  Total non-interest expenses

$

39,900

 

$

37,893

 

$

38,052

 

$

44,495

 

$

42,791

 

Less: Insurance agency expenses

 

-

 

 

-

 

 

-

 

 

7,084

 

 

2,993

 

Non-interest expenses excluding insurance agency

$

39,900

 

$

37,893

 

$

38,052

 

$

37,411

 

$

39,798

 

  Non-interest income

$

12,496

 

$

11,789

 

$

13,253

 

$

53,346

 

$

12,462

 

Less: Gain on sale of insurance agency (pre-tax)

 

-

 

 

-

 

 

-

 

 

36,296

 

 

-

 

Core non-interest income

$

12,496

 

$

11,789

 

$

13,253

 

$

17,050

 

$

12,462

 

Less: Securities gains (losses)

 

(37

)

 

675

 

 

256

 

 

64

 

 

(1,411

)

Core non-interest income (ex securities gains/losses)

$

12,533

 

$

11,114

 

$

12,997

 

$

16,986

 

$

13,873

 

  Tax-equivalent net interest income

$

49,649

 

$

52,593

 

$

54,318

 

$

54,059

 

$

56,391

 

Core non-interest income (ex securities gains/losses)

 

12,533

 

 

11,114

 

 

12,997

 

 

16,986

 

 

13,873

 

Total core revenues

 

62,182

 

 

63,707

 

 

67,315

 

 

71,045

 

 

70,264

 

Core non-interest expenses

$

39,900

 

$

37,893

 

$

38,052

 

$

40,843

 

$

42,791

 

Core efficiency ratio

 

64.17

%

 

59.48

%

 

56.53

%

 

57.49

%

 

60.90

%

  Income (loss) before income taxes

$

22,303

 

$

24,686

 

$

30,238

 

$

62,303

 

$

22,252

 

Add: Provision (benefit) for credit losses

 

(133

)

 

1,761

 

 

(773

)

 

540

 

 

3,706

 

Pre-tax pre-provision income

 

22,170

 

 

26,447

 

 

29,465

 

 

62,843

 

 

25,958

 

Add: Transaction costs (pre-tax)

 

-

 

 

-

 

 

-

 

 

3,652

 

 

-

 

Less: Gain on sale of insurance agency (pre-tax)

 

-

 

 

-

 

 

-

 

 

36,296

 

 

-

 

Core pre-tax pre-provision income

$

22,170

 

$

26,447

 

$

29,465

 

$

30,199

 

$

25,958

 

Average total assets

$

8,591,947

 

$

8,536,193

 

$

8,582,219

 

$

8,597,786

 

$

8,433,100

 

Core pre-tax pre-provision return on average assets

 

1.04

%

 

1.23

%

 

1.36

%

 

1.41

%

 

1.25

%

  Net income (loss)

$

17,789

 

$

20,070

 

$

24,687

 

$

48,391

 

$

18,149

 

Less: Gain on sale of insurance agency (pre-tax)

 

-

 

 

-

 

 

-

 

 

36,296

 

 

-

 

Add: Transaction costs (pre-tax)

 

-

 

 

-

 

 

-

 

 

3,652

 

 

-

 

Add: Tax impact of sale transaction

 

-

 

 

-

 

 

-

 

 

8,483

 

 

-

 

Core net income

$

17,789

 

$

20,070

 

$

24,687

 

$

24,230

 

$

18,149

 

Diluted shares - Reported

 

35,771

 

 

35,772

 

 

35,794

 

 

35,800

 

 

35,719

 

Core diluted EPS

$

0.50

 

$

0.56

 

$

0.69

 

$

0.68

 

$

0.51

 

  Average total assets

$

8,591,947

 

$

8,536,193

 

$

8,582,219

 

$

8,597,786

 

$

8,433,100

 

Core return on average assets

 

0.83

%

 

0.93

%

 

1.14

%

 

1.13

%

 

0.87

%

  Average total equity

$

974,560

 

$

930,835

 

$

939,456

 

$

921,441

 

$

901,587

 

Core return on average equity

 

7.34

%

 

8.55

%

 

10.43

%

 

10.55

%

 

8.16

%

  Average total tangible equity

$

667,334

 

$

622,592

 

$

630,126

 

$

586,579

 

$

565,169

 

Core return on average tangible equity

 

10.72

%

 

12.79

%

 

15.54

%

 

16.57

%

 

13.02

%

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240423557482/en/

Paul Nungester EVP and CFO 419.785.8700 PNungester@yourpremierbank.com