Declared dividend of $0.31 per share
Fourth Quarter 2023
Highlights
- Deposit growth of $77 million (up 4% annualized), including
$128 million for core customer deposits excluding brokered (up 8%
annualized)
- Loan growth of $43 million (up 3% annualized), including $63
million for commercial loan (up 6% annualized)
- Expenses declined $0.2 million (down 2% annualized) from third
quarter 2023
- Non-performing assets decreased $4 million (or 10%) from prior
quarter and six basis points to 0.41% of total assets
- Equity up $56 million or $1.57 per share (both up 24%
annualized) with tangible equity up $57 million or $1.60 per share
(both up 37% annualized) to $18.69 per share and tangible equity
ratio up to 8.03%
Full Year 2023
Highlights
- Completed sale of insurance agency at a significant gain that
strengthened capital without diluting future earnings
- Deposit growth of $236 million (up 3%), including $38 million
for core customer deposits excluding brokered (up 1%)
- Loan growth of $279 million (up 4%) including $179 million for
commercial loans (up 4%)
- Equity up $88 million or $2.37 per share (both up 10%) with
tangible equity up $117 million or $3.22 per share (both up 21%)
and tangible equity ratio up 1.25%
- Launched new digital banking platform to improve clients’
banking experience in October
Premier Financial Corp. (Nasdaq: PFC) (“Premier” or the
“Company”) announced today 2023 fourth quarter and full year
results. Net income for the fourth quarter of 2023 was $20.1
million, or $0.56 per diluted common share, compared to $25.3
million, or $0.71 per diluted common share, for the fourth quarter
of 2022. Net income for 2023 was $111.3 million, or $3.11 per
diluted common share, compared to $102.2 million, or $2.85 per
diluted common share, for 2022. Full year 2023 results include the
impact of the disposition of the Company’s insurance agency, First
Insurance Group (“FIG”), for a net gain on sale after transaction
costs of $32.6 million pre-tax or $0.67 per diluted share
after-tax. Excluding the impact of this transaction, 2023 earnings
would be $2.44 per diluted share.
“In the fourth quarter, we saw a continuation of performance
improvement on many topics outlined in our third quarter release,”
said Gary Small, President and CEO of Premier. “Positive elements
include purposefully moderate loan growth, excellent deposit
growth, strong wealth management revenue growth, deliberate cost
containment, and a decline in non-performing assets. Total loans
grew 4.3% in 2023 with full year commercial loan growth totaling
4.2%. We remain focused on servicing existing clients and are well
positioned to expand our new business outreach efforts in the
upcoming year. We are pleased with our trend in customer deposit
gathering over the past two quarters that delivered growth of $220
million, or 6.7% annualized growth. Over the same period,
non-interest bearing deposit balances stabilized with annualized
growth of 2.3%.”
“Net interest margin management continues to remain our top
financial priority,” Small continued. “While we reduced our
dependency on wholesale funds by $109 million during the fourth
quarter, the impact of continued deposit mix migration and
persistent high yield alternatives in the market are reflected in
our higher cost of funds for the quarter. I will also note the
fourth quarter mortgage banking income was affected by the downward
movement in 10 year Treasury yields during the quarter, triggering
unfavorable valuation marks on the mortgage servicing rights asset
and hedges on the in-process mortgage construction book. Credit
metrics remained steady with non-performing asset levels slightly
lower for the quarter. Consumer and residential mortgage
delinquencies were up but well in check versus historical
performance.”
“As we enter 2024, we anticipate continued moderate earning
assets growth and a relentless focus on deposit growth resulting in
low-to-moderate year-over-year net interest income growth,” added
Small. “Strong expense management and solid credit performance
round out the story.”
Quarterly results
Capital, deposits and liquidity
Regulatory ratios all improved during the fourth quarter of
2023, including CET1 of 11.70%, Tier 1 of 12.20% and Total Capital
of 14.04%. All of these ratios also exceed well-capitalized
guidelines pro forma for including accumulated other comprehensive
income (“AOCI”), including CET1 of 9.53%, Tier 1 of 10.02% and
Total Capital of 11.87%.
Total deposits increased 4.4% annualized, or $77.4 million,
during the fourth quarter of 2023, due to a $127.6 million increase
in customer deposits (up 7.7% annualized), offset partly by a
decrease of $50.2 million in brokered deposits. Total average
interest-bearing deposit costs increased 29 basis points to 2.83%
for the fourth quarter of 2023. 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 and excluding brokered deposits and acquisition marks
were 2.09% during the month of December, representing a cumulative
beta of 37% 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.
At December 31, 2023, uninsured deposits were 33.1% of total
deposits, or 18.9% adjusting for collateralized deposits, other
insured deposits and internal company accounts. Total quantifiable
liquidity sources totaled $2.97 billion, or 218.3% of adjusted
uninsured deposits.
Net interest income and margin
Net interest income of $52.6 million on a tax equivalent (“TE”)
basis in the fourth quarter of 2023 was down 3.2% from $54.3
million in the third quarter of 2023 and down 16.2% from $62.8
million in the fourth quarter of 2022. The TE net interest margin
of 2.65% in the fourth quarter of 2023 decreased eight basis points
from 2.73% in the third quarter of 2023 and 63 basis points from
3.28% in the fourth quarter of 2022. Results for all periods
include the impact of the Paycheck Protection Program (“PPP”) as
well as acquisition marks and related accretion. Fourth quarter
2023 includes $108 thousand of accretion in interest income, $144
thousand of accretion in interest expense, and $5 thousand of
interest income on average balances of $495 thousand for PPP.
Excluding the impact of acquisition marks accretion and PPP
loans, core net interest income was $52.3 million, down 3.1% from
$54.0 million in the third quarter of 2023 and down 15.9% from
$62.2 million in the fourth quarter of 2022. Additionally, the core
net interest margin was 2.64% for the fourth quarter of 2023, down
seven basis points from 2.71% for the third quarter of 2023 and 61
basis points from 3.25% for the fourth quarter of 2022. These
results are positively impacted by the combination of loan growth
and higher loan yields, which were 5.21% for the fourth quarter of
2023 compared to 5.12% in the third quarter of 2023 and 4.54% in
the fourth quarter of 2022. Excluding the impact of PPP, balance
sheet hedges and acquisition marks accretion, loan yields were
5.24% in December 2023, up 149 basis points since December 2021,
which represents a cumulative beta of 28% compared to the change in
the monthly average effective Federal Funds rate for the same
period.
Total earning asset yields in the fourth quarter of 2023 were
4.86%, up nine basis points from the third quarter of 2023 and up
63 basis points from the fourth quarter of 2022. The increases are
largely due to loan growth and higher average yields for loans and
securities. Excluding the impact of PPP, balance sheet hedges and
acquisition marks accretion, earning asset yields were 4.91% in
December 2023, up 157 basis points since December 2021, which
represents a cumulative beta of 30% compared to the change in the
monthly average effective Federal Funds rate for the same period.
The cost of funds in the fourth quarter of 2023 was 2.35%, up 18
basis points from the third quarter of 2023 and up 135 basis points
from the fourth quarter of 2022. The increases are largely due to
the higher average deposit costs discussed above. Excluding the
impact of balance sheet hedges and acquisition marks accretion,
cost of funds were 2.40% in December 2023 for an increase of 219
basis points since December 2021, which represents a cumulative
beta of 42% compared to the change in the monthly average effective
Federal Funds rate for the same period.
“The decline in net interest margin experienced during the
fourth quarter in part reflected the impact of expanded ‘new money’
deposit attraction promotions introduced in select markets across
the network,” said Small. “The programs are short in duration and
designed as a household gathering catalyst for these specific
locations. The successful effort contributed to the 7.7% annualized
customer deposit growth achieved during the quarter.”
Non-interest income
Total non-interest income in the fourth quarter of 2023 of $11.8
million was down 11% from $13.3 million in the third quarter of
2023, but up 10.7% from $10.7 million in the fourth quarter of
2022, excluding insurance commissions, primarily due to
fluctuations in mortgage banking and gains/losses on securities.
Mortgage banking income decreased $2.5 million on a linked quarter
basis but increased $1.1 million year-over-year, primarily as a
result of fluctuations in gain margins.
Security gains were $675 thousand in the fourth quarter of 2023,
compared to gains of $256 thousand in the third quarter of 2023 and
$1.2 million in the fourth quarter of 2022, primarily due to
valuation changes on equity securities. Service fees in the fourth
quarter of 2023 were $6.8 million, a 2.7% decrease from $6.9
million in the third quarter of 2023, but a 1.9% increase from $6.6
million in the fourth quarter of 2022. 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 fourth
quarter of 2023, compared to $3.6 million in the fourth quarter of
2022. Wealth management income of $1.8 million in the fourth
quarter of 2023 was 18.7% higher than $1.5 million in the third
quarter of 2023 and 13.2% higher than $1.6 million in the fourth
quarter of 2022. BOLI income of $1.5 million in the fourth quarter
of 2023 included $453 thousand of claim gains, compared to $1.0
million in each of the third quarter of 2023 and fourth quarter of
2022, neither of which included any claim gains.
Non-interest expenses
Non-interest expenses in the fourth quarter of 2023 were $37.9
million, a 0.4% decrease from $38.1 million in the third quarter of
2023, and an 11.9% decrease from $43.0 million in the fourth
quarter of 2022. Compensation and benefits were $21.0 million in
the fourth quarter of 2023, compared to $21.8 million in the third
quarter of 2023 and $25.0 million in the fourth quarter of 2022.
The linked quarter decrease was primarily due to cost saving
initiatives that began during the second quarter of 2023. The
year-over-year decrease was primarily due to the insurance agency
sale, partially offset by costs related to higher staffing levels
for our 2022 growth initiatives and higher base compensation,
including 2022 mid-year adjustments and 2023 annual adjustments.
Data processing costs were $4.7 million in the fourth quarter of
2023, compared to $4.0 million in the third quarter of 2023 and
$3.9 million in the fourth quarter of 2022, with the increases
primarily due to the new digital platform launched in October 2023.
All other non-interest expenses increased only a net $23 thousand
on a linked quarter basis and decreased a net $1.9 million on a
year-over-year basis due to the insurance agency sale and cost
saving initiatives. The efficiency ratio for the fourth quarter of
2023 was 59.5% compared to 56.5% in the third quarter of 2023 and
56.8% in the fourth quarter of 2022.
“Expense containment remains a high priority for us as we
continue to manage the net interest margin challenges,” said Paul
Nungester, CFO of Premier. “The successful implementation of cost
saving initiatives enabled us to reduce our ratio of expenses to
average assets to 1.76% for the last two quarters of 2023,
representing a 30 basis point improvement from the fourth quarter
of 2022.”
Credit quality
Non-performing assets totaled $35.7 million, or 0.41% of assets,
at December 31, 2023, a decrease from $39.9 million at September
30, 2023, but an increase from $34.4 million at December 31, 2022.
Loan delinquencies increased to $20.9 million, or 0.30% of loans,
at December 31, 2023, from $17.2 million at September 30, 2023, and
from $18.3 million at December 31, 2022. Classified loans totaled
$69.7 million, or 0.99% of loans, as of December 31, 2023, an
increase from $63.5 million at September 30, 2023, and from $43.8
million at December 31, 2022.
The 2023 fourth quarter results include net charge-offs of $2.1
million and a total provision expense of $1.8 million, compared
with net loan charge-offs of $830 thousand and a total provision
expense of $2.8 million for the same period in 2022. The allowance
for credit losses as a percentage of total loans was 1.14% at
December 31, 2023, compared with 1.14% at September 30, 2023, and
1.13% at December 31, 2022. The allowance for credit losses as a
percentage of total loans excluding PPP and including unaccreted
acquisition marks was 1.15% at December 31, 2023, compared with
1.17% at September 30, 2023, and December 31, 2022. The continued
economic improvement following the 2020 pandemic-related downturn
has resulted in a year-over-year decrease in the allowance
percentages.
Full year results
For the year ended December 31, 2023, net income totaled $111.3
million, or $3.11 per diluted common share, compared to $102.2
million, or $2.85 per diluted common share for the year ended
December 31, 2022. 2023 results include the impact of the insurance
agency sale for a net gain on sale after transaction costs of $32.6
million pre-tax, or $0.67 per diluted share after-tax. Excluding
the impact of this item, full year 2023 core net income was $87.1
million, or $2.44 per diluted share.
Net interest income of $217.4 million on a TE basis for 2023 was
down 10.8% from $243.7 million for 2022. The TE net interest margin
of 2.75% in 2023 decreased 62 basis points from 3.37% in 2022.
Results for all periods include the impact of PPP as well as
acquisition marks and related accretion. 2023 includes $583
thousand of accretion in interest income, $757 thousand of
accretion in interest expense, and $20 thousand of interest income
on average balances of $670 thousand for PPP. Excluding the impact
of acquisition marks accretion and PPP loans, core net interest
income was $216.0 million, down 9.0% from $237.3 million in 2022.
Additionally, the core net interest margin was 2.73% for 2023, down
55 basis points from 3.28% for of 2022. These results are
positively impacted by the combination of loan growth and higher
loan yields, which were 4.96% for 2023 compared to 4.24% for 2022.
The cost of funds in 2023 was 1.99%, up 148 basis points from 0.51%
in 2022. The year-over-year increase is largely due to utilization
of higher cost wholesale fundings in support of loan growth in
excess of deposit growth during late 2022 and early 2023.
Excluding insurance commissions and the $36.3 million gain on
the sale of the insurance agency, total non-interest income in 2023
of $45.7 million was down 0.5% from $45.9 million for 2022.
Insurance commissions were $8.9 million in 2023, down from $16.2
million in 2022 due to the insurance agency sale on June 30, 2023.
Mortgage banking income decreased $3.1 million year-over-year as a
result of a $1.4 million decrease in gains primarily from lower
production and margins, as well as a $69 thousand mortgage
servicing rights (“MSR”) valuation loss in 2023 compared to a $2.0
million gain for 2022.
Security losses were $0.4 million in 2023, compared to a loss of
$0.6 million, primarily due to decreased valuations on equity
securities. The company also sold $24 million of available-for-sale
(“AFS”) securities for a $37 thousand gain with average yields less
than FHLB borrowing rates during 2023. Service fees in 2023 were
$27.3 million, a 5.7% increase from $25.9 million in 2022,
primarily due to fluctuations in loan fees including commercial
customer swap activity and consumer activity for interchange and
ATM/NSF charges. Wealth management income of $6.3 million in 2023
was up 8.5% from $5.8 million in 2022. Bank owned life insurance
income of $5.0 million in 2023 increased from $3.9 million in 2022
with $0.9 million of claim gains in 2023 compared to none in
2022.
Excluding transaction costs for the insurance agency sale,
non-interest expenses in 2023 were $159.6 million, down 3.0% from
$164.5 million in 2022. Compensation and benefits were $92.6
million in 2023, compared to $97.4 million in 2022. The
year-over-year decrease was primarily due to the insurance agency
sale on June 30, 2023, and cost saving initiatives that began
during the second quarter of 2023 partially offset by costs related
to higher staffing levels from our 2022 growth initiatives and
higher base compensation, including 2022 mid-year adjustments and
2023 annual adjustments. FDIC premiums increased $2.2 million on a
year-over-year basis primarily due to higher rates and our 2022
growth initiatives. Data processing costs were $16.2 million in
2023, compared to $13.8 million in 2022 with the increase primarily
due to year-over-year growth. All other non-interest expenses
decreased a net $4.7 million on a year-over-year basis primarily
due to cost saving initiatives. The efficiency ratio (excluding
transaction costs and the insurance agency gain on sale) for 2023
of 58.6% worsened from 53.7% in 2022 due to lower revenues partly
offset by cost saving initiatives that began during the second
quarter of 2023.
Results for 2023 include net loan charge-offs of $4.0 million
and a total provision expense of $5.2 million, compared with net
loan charge-offs of $6.2 million and a total provision expense of
$14.3 million for 2022. The provision expense for both years is
primarily due to relative loan growth.
Total assets at $8.63 billion
Total assets at December 31, 2023, were $8.63 billion, compared
to $8.56 billion at September 30, 2023, and $8.46 billion at
December 31, 2022. Loans receivable were $6.74 billion at December
31, 2023, compared to $6.70 billion at September 30, 2023, and
$6.46 billion at December 31, 2022. At December 31, 2023, loans
receivable increased $278.8 million on a year-over-year basis, or
4.3%. Core commercial loans excluding PPP increased by $179.7
million from December 31, 2022, or 4.2%. Securities at December 31,
2023, were $0.95 billion, compared to $0.92 billion at September
30, 2023, and $1.05 billion at December 31, 2022. All securities
are either AFS or trading and are reflected at fair value on the
balance sheet. Also, at December 31, 2023, goodwill and other
intangible assets totaled $307.8 million compared to $308.8 million
at September 30, 2023, and $337.1 million at December 31, 2022,
with the year-over-year decrease primarily due to the insurance
agency sale.
Total non-brokered deposits at December 31, 2023, were $6.80
billion, compared with $6.67 billion at September 30, 2023, and
$6.76 billion at December 31, 2022. At December 31, 2023, customer
deposits increased $127.6 million on a linked quarter basis, or
7.7% annualized. Brokered deposits were $341.9 million at December
31, 2023, compared to $392.2 million at September 30, 2023 and
$143.7 million at December 31, 2022.
Total stockholders’ equity was $975.6 million at December 31,
2023, compared to $919.6 million at September 30, 2023, and $887.7
million at December 31, 2022. The quarterly increase in
stockholders’ equity was primarily due to an increase in AOCI,
which included $37.7 million for a positive valuation adjustment on
the AFS securities portfolio, plus 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
plus an increase in AOCI, which included $15.2 million for positive
valuation adjustments on the AFS securities portfolio. At December
31, 2023, 1,199,634 common shares remained available for repurchase
under the Company’s existing repurchase program.
“2023 was a successful year of strengthening capital amidst a
challenging interest rate environment,” said Nungester.
“Across-the-board we enhanced book equity, tangible equity and
regulatory capital. Year-over-year ratio improvements include book
equity/assets up 81 basis points to 11.31%, tangible
equity/tangible assets up 125 basis points to 8.03% and total
risk-based capital up 190 basis points to 14.04%.”
Dividend to be paid February 16
The Board of Directors declared a quarterly cash dividend of
$0.31 per common share payable February 16, 2024, to shareholders
of record at the close of business on February 9, 2024. The
dividend represents an annual dividend of 5.2 percent based on the
Premier common stock closing price on January 22, 2024. Premier has
approximately 35,732,000 common shares outstanding.
Conference call
Premier will host a conference call at 10:00 a.m. ET on
Wednesday, January 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 540476. Internet access to the
call is also available (in listen-only mode) at the following URL:
https://events.q4inc.com/attendee/656800446. 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 75 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; changes in
interest rates; 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; 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 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, 2022 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 December 31, 2023, consolidated financial statements as part
of its Annual Report on Form 10-K 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.
December 31,
September 30,
June 30,
March 31,
December 31,
(in thousands)
2023
2023
2023
2023
2022
Assets Cash and cash equivalents Cash and amounts due
from depositories
$
81,973
$
70,642
$
71,096
$
68,628
$
88,257
Interest-bearing deposits
32,783
46,855
50,631
88,399
39,903
114,756
117,497
121,727
157,027
128,160
Available-for-sale, carried at fair value
946,708
911,184
961,123
998,128
1,040,081
Equity securities, carried at fair value
5,773
5,860
6,458
6,387
7,832
Securities investments
952,481
917,044
967,581
1,004,515
1,047,913
Loans (1)
6,739,387
6,696,869
6,708,568
6,575,829
6,460,620
Allowance for credit losses - loans
(76,512
)
(76,513
)
(75,921
)
(74,273
)
(72,816
)
Loans, net
6,662,875
6,620,356
6,632,647
6,501,556
6,387,804
Loans held for sale
145,641
135,218
128,079
119,604
115,251
Mortgage servicing rights
18,696
19,642
20,160
20,654
21,171
Accrued interest receivable
33,446
34,648
30,056
29,388
28,709
Federal Home Loan Bank stock
21,760
25,049
39,887
37,056
29,185
Bank Owned Life Insurance
181,544
172,906
171,856
170,841
170,713
Office properties and equipment
56,878
55,679
55,736
55,982
55,541
Real estate and other assets held for sale
243
387
561
393
619
Goodwill
295,602
295,602
295,602
317,988
317,988
Core deposit and other intangibles
12,186
13,220
14,298
17,804
19,074
Other assets
129,841
155,628
138,021
129,508
133,214
Total Assets
$
8,625,949
$
8,562,876
$
8,616,211
$
8,562,316
$
8,455,342
Liabilities and Stockholders’ Equity
Non-interest-bearing deposits
$
1,591,979
$
1,545,595
$
1,573,837
$
1,649,726
$
1,869,509
Interest-bearing deposits
5,209,123
5,127,863
5,007,358
4,969,436
4,893,502
Brokered deposits
341,944
392,181
413,237
154,869
143,708
Total deposits
7,143,046
7,065,639
6,994,432
6,774,031
6,906,719
Advances from FHLB
280,000
339,000
455,000
658,000
428,000
Subordinated debentures
85,229
85,197
85,166
85,123
85,103
Advance payments by borrowers
23,277
22,781
26,045
26,300
34,188
Reserve for credit losses - unfunded commitments
4,307
4,690
5,708
6,577
6,816
Other liabilities
114,463
126,002
112,889
97,835
106,795
Total Liabilities
7,650,322
7,643,309
7,679,240
7,647,866
7,567,621
Stockholders’ Equity Preferred stock
-
-
-
-
-
Common stock, net
306
306
306
306
306
Additional paid-in-capital
690,585
690,038
689,579
689,807
691,453
Accumulated other comprehensive income (loss)
(153,719
)
(200,282
)
(168,721
)
(153,709
)
(173,460
)
Retained earnings
569,937
560,945
547,336
510,021
502,909
Treasury stock, at cost
(131,482
)
(131,440
)
(131,529
)
(131,975
)
(133,487
)
Total Stockholders’ Equity
975,627
919,567
936,971
914,450
887,721
Total Liabilities and Stockholders’ Equity
$
8,625,949
$
8,562,876
$
8,616,211
$
8,562,316
$
8,455,342
(1) Includes PPP loans of:
$
469
$
526
$
577
$
791
$
1,143
Consolidated Statements of Income (Unaudited) Premier
Financial Corp.
Three Months Ended
Year Ended
(in thousands, except per share amounts)
12/31/23
9/30/23
6/30/23
3/31/23
12/31/22
12/31/23
12/31/22
Interest Income: Loans
$
87,924
$
86,612
$
81,616
$
76,057
$
72,194
$
332,208
$
249,561
Investment securities
7,013
6,943
6,997
7,261
7,605
28,214
26,095
Interest-bearing deposits
740
652
641
444
444
2,478
831
FHLB stock dividends
621
690
905
394
482
2,610
1,225
Total interest income
96,298
94,897
90,159
84,156
80,725
365,510
277,712
Interest Expense: Deposits
39,250
34,874
26,825
21,458
13,161
122,407
24,909
FHLB advances
3,328
4,597
8,217
5,336
3,941
21,479
6,550
Subordinated debentures
1,169
1,162
1,125
1,075
1,000
4,531
3,327
Notes Payable
-
-
-
-
4
-
5
Total interest expense
43,747
40,633
36,167
27,869
18,106
148,417
34,791
Net interest income
52,551
54,264
53,992
56,287
62,619
217,093
242,921
Provision (benefit) for credit losses - loans
2,143
245
1,410
3,944
3,020
7,742
12,503
Provision (benefit) for credit losses - unfunded commitments
(382
)
(1,018
)
(870
)
(238
)
(246
)
(2,508
)
1,784
Total provision (benefit) for credit losses
1,761
(773
)
540
3,706
2,774
5,234
14,287
Net interest income after provision
50,790
55,037
53,452
52,581
59,845
211,859
228,634
Non-interest Income: Service fees and other charges
6,761
6,947
7,190
6,428
6,632
27,325
25,853
Mortgage banking income
802
3,274
2,940
(274
)
(299
)
6,743
9,871
Gain (loss) on sale of non-mortgage loans
94
-
71
-
-
165
-
Gain (loss) on sale of available for sale securities
10
-
(7
)
34
1
37
1
Gain (loss) on equity securities
665
256
71
(1,445
)
1,209
(453
)
(551
)
Gain on sale of insurance agency
-
-
36,296
-
-
36,296
-
Insurance commissions
-
-
4,131
4,725
3,576
8,856
16,228
Wealth management income
1,791
1,509
1,537
1,485
1,582
6,322
5,828
Income from Bank Owned Life Insurance
1,532
1,050
1,015
1,417
984
5,014
3,946
Other non-interest income
134
217
102
92
543
544
984
Total Non-interest Income
11,789
13,253
53,346
12,462
14,228
90,849
62,160
Non-interest Expense: Compensation and benefits
20,963
21,813
24,175
25,658
24,999
92,609
97,396
Occupancy
3,318
3,145
3,320
3,574
3,383
13,358
14,039
FDIC insurance premium
1,383
1,346
1,786
1,288
1,276
5,803
3,647
Financial institutions tax
761
989
961
852
795
3,563
4,110
Data processing
4,678
4,010
3,640
3,863
3,882
16,191
13,780
Amortization of intangibles
1,033
1,078
1,223
1,270
1,293
4,604
5,450
Transaction costs
-
-
3,652
-
-
3,652
-
Other non-interest expense
5,757
5,671
5,738
6,286
7,400
23,451
26,089
Total Non-interest Expense
37,893
38,052
44,495
42,791
43,028
163,231
164,511
Income before income taxes
24,686
30,238
62,303
22,252
31,045
139,477
126,283
Income tax expense
4,616
5,551
13,912
4,103
5,770
28,182
24,096
Net Income
$
20,070
$
24,687
$
48,391
$
18,149
$
25,275
$
111,295
$
102,187
Earnings per common share: Basic
$
0.56
$
0.69
$
1.35
$
0.51
$
0.71
$
3.11
$
2.86
Diluted
$
0.56
$
0.69
$
1.35
$
0.51
$
0.71
$
3.11
$
2.85
Average Shares Outstanding: Basic
35,655
35,730
35,722
35,606
35,589
35,693
35,679
Diluted
35,772
35,794
35,800
35,719
35,790
35,781
35,809
Premier Financial Corp. Selected Quarterly
Information Three Months Ended Year Ended
(dollars in thousands, except per share data)
12/31/23
9/30/23 6/30/23 3/31/23 12/31/22
12/31/23 12/31/22
Summary of Operations Tax-equivalent interest income (1)
$
96,340
$
94,951
$
90,226
$
84,260
$
80,889
$
365,777
$
278,526
Interest expense
43,747
40,633
36,167
27,869
18,106
148,417
34,791
Tax-equivalent net interest income (1)
52,593
54,318
54,059
56,391
62,783
217,360
243,735
Provision expense for credit losses
1,761
(773
)
540
3,706
2,774
5,234
14,287
Non-interest income (ex securities gains/losses)
11,114
12,997
53,282
13,873
13,018
91,265
62,710
Core non-interest income (ex securities gains/losses) (2)
11,114
12,997
16,986
13,873
13,018
54,969
62,710
Non-interest expense
37,893
38,052
44,495
42,791
43,028
163,231
164,511
Core non-interest expense (2)
37,893
38,052
40,843
42,791
43,028
159,579
164,511
Income tax expense
4,616
5,551
13,912
4,103
5,770
28,182
24,096
Net income
20,070
24,687
48,391
18,149
25,275
111,295
102,187
Core net income (2)
20,070
24,687
24,230
18,149
25,275
87,134
102,187
Tax equivalent adjustment (1)
42
54
67
104
164
267
814
At Period End Total assets
$
8,625,949
$
8,562,876
$
8,616,211
$
8,562,316
$
8,455,342
Goodwill and intangibles
307,788
308,822
309,900
335,792
337,062
Tangible assets (3)
8,318,161
8,254,054
8,306,311
8,226,524
8,118,280
Earning assets
7,815,540
7,744,522
7,818,825
7,751,130
7,620,056
Loans
6,739,387
6,696,869
6,708,568
6,575,829
6,460,620
Allowance for loan losses
76,512
76,513
75,921
74,273
72,816
Deposits
7,143,046
7,065,639
6,994,432
6,774,031
6,906,719
Stockholders’ equity
975,627
919,567
936,971
914,450
887,721
Stockholders’ equity / assets
11.31
%
10.74
%
10.87
%
10.68
%
10.50
%
Tangible equity (3)
667,839
610,745
627,071
578,658
550,659
Tangible equity / tangible assets
8.03
%
7.40
%
7.55
%
7.03
%
6.78
%
Average Balances Total assets
$
8,536,193
$
8,582,219
$
8,597,786
$
8,433,100
$
8,304,462
$
8,537,730
$
7,932,398
Earning assets
7,936,648
7,969,363
7,951,520
7,783,850
7,653,648
7,912,651
7,237,621
Loans
6,754,782
6,763,232
6,714,240
6,535,080
6,359,564
6,692,631
5,885,969
Deposits and interest-bearing liabilities
7,447,324
7,486,595
7,538,674
7,385,946
7,278,531
7,464,863
6,882,309
Deposits
7,098,265
7,045,827
6,799,605
6,833,521
6,773,382
6,945,308
6,533,539
Stockholders’ equity
930,835
939,456
921,441
901,587
875,287
923,454
927,534
Goodwill and intangibles
308,243
309,330
334,862
336,418
337,207
322,101
339,255
Tangible equity (3)
622,592
630,126
586,579
565,169
538,080
601,353
588,279
Per Common Share Data Earnings per share ("EPS") - Basic
$
0.56
$
0.69
$
1.35
$
0.51
$
0.71
$
3.11
$
2.86
EPS - Diluted
0.56
0.69
1.35
0.51
0.71
3.11
2.85
EPS - Core diluted (2)
0.56
0.69
0.68
0.51
0.71
2.44
2.85
Dividends Paid
0.31
0.31
0.31
0.31
0.30
1.24
1.20
Market Value: High
$
24.87
$
22.89
$
21.01
$
27.80
$
30.51
$
27.99
$
32.52
Low
15.79
15.70
13.60
20.39
26.11
13.60
24.67
Close
24.10
17.06
16.02
20.73
26.97
24.10
26.97
Common Book Value
27.31
25.74
26.23
25.61
24.94
Tangible Common Book Value (3)
18.69
17.09
17.55
16.21
15.47
Shares outstanding, end of period (000s)
35,730
35,731
35,727
35,701
35,591
Performance Ratios (annualized) Tax-equivalent net interest
margin (1)
2.65
%
2.73
%
2.72
%
2.90
%
3.28
%
2.75
%
3.37
%
Return on average assets
0.93
%
1.14
%
2.26
%
0.86
%
1.21
%
1.30
%
1.29
%
Core return on average assets (2)
0.93
%
1.14
%
1.13
%
0.86
%
1.22
%
1.02
%
1.29
%
Return on average equity
8.55
%
10.43
%
21.06
%
8.07
%
11.46
%
12.05
%
11.02
%
Core return on average equity (2)
8.55
%
10.43
%
10.55
%
8.07
%
11.58
%
9.44
%
11.02
%
Return on average tangible equity
12.79
%
15.54
%
33.09
%
12.88
%
18.64
%
18.51
%
17.37
%
Core return on average tangible equity (2)
12.79
%
15.54
%
16.57
%
10.51
%
14.64
%
14.49
%
17.37
%
Efficiency ratio (4)
59.48
%
56.53
%
41.45
%
60.90
%
56.76
%
52.89
%
53.68
%
Core efficiency ratio (2)
59.48
%
56.53
%
57.49
%
60.90
%
56.76
%
58.60
%
53.68
%
Non-interest expenses / average assets
1.76
%
1.76
%
2.08
%
2.06
%
2.06
%
1.91
%
2.07
%
Core non-interest expenses / average assets
1.76
%
1.76
%
1.91
%
2.06
%
2.06
%
1.87
%
2.07
%
Effective tax rate
18.70
%
18.36
%
22.33
%
18.44
%
18.59
%
20.21
%
19.08
%
Common dividend payout ratio
55.36
%
44.93
%
22.96
%
60.78
%
42.25
%
39.87
%
42.11
%
(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 Year Ended
12/31/23 9/30/23 6/30/23 3/31/23 12/31/22
12/31/23
12/31/22
Average Balances Interest-earning assets:
Loans receivable (1)
$
6,754,782
$
6,763,232
$
6,714,240
$
6,535,080
$
6,359,564
$
6,692,631
$
5,885,969
Securities
1,121,231
1,137,730
1,155,451
1,190,359
1,236,511
1,150,966
1,258,901
Interest Bearing Deposits
36,761
38,210
36,730
35,056
29,884
36,698
70,917
FHLB stock
23,874
30,191
45,099
30,353
28,386
32,356
21,834
Total interest-earning assets
7,936,648
7,969,363
7,951,520
7,790,848
7,654,345
7,912,651
7,237,621
Non-interest-earning assets
599,545
612,856
646,266
642,252
650,117
625,079
694,777
Total assets
$
8,536,193
$
8,582,219
$
8,597,786
$
8,433,100
$
8,304,462
$
8,537,730
$
7,932,398
Deposits and Interest-bearing Liabilities: Interest bearing
deposits
$
5,541,498
$
5,490,945
$
5,195,727
$
5,078,510
$
4,901,412
$
5,328,389
$
4,741,827
FHLB advances and other
263,848
355,576
653,923
467,311
419,761
434,389
263,551
Subordinated debentures
85,211
85,179
85,146
85,114
85,084
85,163
85,036
Notes payable
-
13
-
-
304
3
183
Total interest-bearing liabilities
5,890,557
5,931,713
5,934,796
5,630,935
5,406,561
5,847,944
5,090,597
Non-interest bearing deposits
1,556,767
1,554,882
1,603,878
1,755,011
1,871,970
1,616,919
1,791,712
Total including non-interest-bearing deposits
7,447,324
7,486,595
7,538,674
7,385,946
7,278,531
7,464,863
6,882,309
Other non-interest-bearing liabilities
158,034
156,168
137,671
145,567
150,644
149,413
122,555
Total liabilities
7,605,358
7,642,763
7,676,345
7,531,513
7,429,175
7,614,276
7,004,864
Stockholders' equity
930,835
939,456
921,441
901,587
875,287
923,454
927,534
Total liabilities and stockholders' equity
$
8,536,193
$
8,582,219
$
8,597,786
$
8,433,100
$
8,304,462
$
8,537,730
$
7,932,398
IEAs/IBLs
135
%
134
%
134
%
138
%
142
%
135
%
142
%
Interest Income/Expense Interest-earning
assets: Loans receivable (2)
$
87,929
$
86,618
$
81,622
$
76,063
$
72,201
$
332,231
$
249,586
Securities (2)
7,050
6,991
7,058
7,359
7,762
28,458
26,884
Interest Bearing Deposits
740
652
641
444
444
2,478
831
FHLB stock
621
690
905
394
482
2,610
1,225
Total interest-earning assets
96,340
94,951
90,226
84,260
80,889
365,777
278,526
Deposits and Interest-bearing Liabilities: Interest bearing
deposits
$
39,250
$
34,874
$
26,825
$
21,458
$
13,161
$
122,407
$
24,909
FHLB advances and other
3,328
4,597
8,217
5,336
3,941
21,479
6,550
Subordinated debentures
1,169
1,162
1,125
1,075
1,001
4,531
3,327
Notes payable
-
-
-
-
3
-
5
Total interest-bearing liabilities
43,747
40,633
36,167
27,869
18,106
148,417
34,791
Non-interest bearing deposits
-
-
-
-
-
-
-
Total including non-interest-bearing deposits
43,747
40,633
36,167
27,869
18,106
148,417
34,791
Net interest income
$
52,593
$
54,318
$
54,059
$
56,391
$
62,783
$
217,360
$
243,735
Less: PPP income
(5
)
(4
)
(5
)
(6
)
(6
)
(20
)
(3,833
)
Less: Acquisition marks accretion
(252
)
(322
)
(380
)
(387
)
(554
)
(1,340
)
(2,606
)
Core net interest income
$
52,336
$
53,992
$
53,674
$
55,998
$
62,223
$
216,000
$
237,296
Annualized Average Rates Interest-earning
assets: Loans receivable
5.21
%
5.12
%
4.86
%
4.66
%
4.54
%
4.96
%
4.24
%
Securities (3)
2.52
%
2.46
%
2.44
%
2.47
%
2.51
%
2.47
%
2.14
%
Interest Bearing Deposits
8.05
%
6.83
%
6.98
%
5.07
%
5.94
%
6.75
%
1.17
%
FHLB stock
10.40
%
9.14
%
8.03
%
5.19
%
6.79
%
8.07
%
5.61
%
Total interest-earning assets
4.86
%
4.77
%
4.54
%
4.33
%
4.23
%
4.62
%
3.85
%
Deposits and Interest-bearing Liabilities: Interest bearing
deposits
2.83
%
2.54
%
2.07
%
1.69
%
1.07
%
2.30
%
0.53
%
FHLB advances and other
5.05
%
5.17
%
5.03
%
4.57
%
3.76
%
4.94
%
2.49
%
Subordinated debentures
5.49
%
5.46
%
5.29
%
5.05
%
4.71
%
5.32
%
3.91
%
Notes payable
-
-
-
-
3.95
%
0.00
%
2.73
%
Total interest-bearing liabilities
2.97
%
2.74
%
2.44
%
1.98
%
1.34
%
2.54
%
0.68
%
Non-interest bearing deposits
-
-
-
-
-
-
-
Total including non-interest-bearing deposits
2.35
%
2.17
%
1.92
%
1.51
%
1.00
%
1.99
%
0.51
%
Net interest spread
1.89
%
2.03
%
2.10
%
2.35
%
2.89
%
2.08
%
3.17
%
Net interest margin (4)
2.65
%
2.73
%
2.72
%
2.90
%
3.28
%
2.75
%
3.37
%
Core net interest margin (4)
2.64
%
2.71
%
2.70
%
2.88
%
3.25
%
2.73
%
3.28
%
(1) Includes average PPP loans of:
$
495
$
553
$
673
$
965
$
1,160
$
670
$
12,102
(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. Core
net interest margin represents net interest margin excluding PPP
and acquisition marks accretion.
Premier Financial Corp. Deposits and Liquidity
(dollars in thousands)
As of and for the Three Months Ended
12/31/23 9/30/23 6/30/23 3/31/23 12/31/22
Ending
Balances Non-interest-bearing demand deposits
$
1,591,979
$
1,545,595
$
1,573,837
$
1,649,726
$
1,869,509
Savings deposits
677,679
709,938
748,392
775,186
797,376
Interest-bearing demand deposits
565,757
580,069
594,325
646,329
653,960
Money market account deposits
1,374,526
1,279,551
1,282,721
1,342,451
1,493,729
Time deposits
998,002
925,353
904,717
856,720
768,678
Public funds, ICS and CDARS deposits
1,593,159
1,632,952
1,477,203
1,348,750
1,179,759
Brokered deposits
341,944
392,181
413,237
154,869
143,708
Total deposits
$
7,143,046
$
7,065,639
$
6,994,432
$
6,774,031
$
6,906,719
Average Balances Non-interest-bearing demand deposits
$
1,556,767
$
1,554,882
$
1,603,878
$
1,755,011
$
1,871,970
Savings deposits
691,295
728,545
762,074
782,215
806,653
Interest-bearing demand deposits
557,210
575,744
603,572
637,423
651,685
Money market account deposits
1,331,623
1,278,381
1,311,177
1,430,905
1,418,549
Time deposits
959,420
912,579
872,991
825,652
685,453
Public funds, ICS and CDARS deposits
1,614,339
1,573,213
1,399,749
1,232,230
1,235,772
Brokered deposits
387,611
422,483
246,164
170,085
103,300
Total deposits
$
7,098,265
$
7,045,827
$
6,799,605
$
6,833,521
$
6,773,382
Average Rates Non-interest-bearing demand deposits
0.00
%
0.00
%
0.00
%
0.00
%
0.00
%
Savings deposits
0.03
%
0.03
%
0.02
%
0.02
%
0.02
%
Interest-bearing demand deposits
0.13
%
0.11
%
0.10
%
0.07
%
0.07
%
Money market account deposits
2.65
%
2.02
%
1.73
%
1.54
%
0.81
%
Time deposits
3.15
%
2.68
%
2.27
%
1.83
%
1.05
%
Public funds, ICS and CDARS deposits
4.30
%
4.18
%
3.71
%
3.32
%
2.41
%
Brokered deposits
5.46
%
5.36
%
4.92
%
4.19
%
3.32
%
Total deposits
2.21
%
1.98
%
1.58
%
1.26
%
0.78
%
Other Deposits Data Loans/Deposits Ratio
94.3
%
94.8
%
95.9
%
97.1
%
93.5
%
Uninsured deposits %
33.1
%
32.8
%
31.5
%
32.3
%
35.3
%
Adjusted uninsured deposits % (1)
18.9
%
17.7
%
17.3
%
19.6
%
22.2
%
Top 20 depositors %
13.9
%
14.1
%
12.4
%
12.1
%
5.4
%
Public funds %
17.9
%
18.8
%
17.5
%
16.5
%
14.8
%
Average account size (excluding brokered)
$
26.9
$
27.1
$
26.7
$
27.0
$
27.8
Securities Data Held-to-maturity (HTM) at fair value
$
-
$
-
$
-
$
-
$
-
Available-for-sale (AFS) at fair value (2)
946,708
911,184
961,123
998,128
1,040,081
Equity investment at fair value (3)
5,773
5,860
6,458
6,387
7,832
Total securities at fair value
$
952,481
$
917,044
$
967,581
$
1,004,515
$
1,047,913
Cash+Securities/Assets
12.4
%
12.1
%
12.6
%
13.6
%
13.9
%
Projected AFS cash flow in next 12 months
$
69,067
$
66,495
$
64,687
$
73,184
$
73,319
AFS average life (years)
6.2
6.5
6.5
6.4
6.5
Liquidity Sources Cash and cash equivalents
$
114,756
$
117,497
$
121,727
$
157,027
$
128,160
Unpledged securities at fair value
314,385
280,916
298,471
211,468
288,134
FHLB borrowing capacity
1,336,707
1,311,091
1,542,459
1,358,650
1,528,978
Brokered deposits
513,767
316,697
288,719
524,889
549,370
Bank and parent lines of credit
70,000
70,000
70,000
70,000
70,000
Federal Reserve - Discount Window and BTFP (4)
620,518
471,395
491,141
129,918
44,471
Total
$
2,970,133
$
2,567,596
$
2,812,517
$
2,451,952
$
2,609,113
Total liquidity to adjusted uninsured deposits ratio
218.3
%
204.0
%
230.5
%
183.2
%
168.9
%
(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 borrowing capacity related
to unpledged securities at par value in excess of fair value under
Bank Term Funding Program.
Premier Financial Corp. Loans and Capital (dollars in
thousands)
12/31/23 9/30/23 6/30/23 3/31/23 12/31/22
Loan
Portfolio Composition Residential real estate
$
1,810,265
$
1,797,676
$
1,711,632
$
1,624,331
$
1,535,574
Residential real estate construction
28,794
51,637
111,708
141,209
176,737
Total residential loans
1,839,059
1,849,313
1,823,340
1,765,540
1,712,311
Commercial real estate
2,839,905
2,820,410
2,848,410
2,813,441
2,762,311
Commercial construction
528,563
502,502
472,328
440,510
428,743
Commercial excluding PPP
1,056,334
1,038,939
1,068,795
1,060,351
1,054,037
Core commercial loans (1)
4,424,802
4,361,851
4,389,533
4,314,302
4,245,091
Consumer direct/indirect
193,830
203,800
210,390
212,299
213,405
Home equity and improvement lines
267,960
269,053
272,792
271,676
277,613
Total consumer loans
461,790
472,853
483,182
483,975
491,018
Deferred loan origination fees
13,267
12,326
11,936
11,221
11,057
Core loans (1)
6,738,918
6,696,343
6,707,991
6,575,038
6,459,477
PPP loans
469
526
577
791
1,143
Total loans
$
6,739,387
$
6,696,869
$
6,708,568
$
6,575,829
$
6,460,620
Loans held for sale
$
145,641
$
135,218
$
128,079
$
119,631
$
115,251
Core residential loans (1)
1,984,700
1,984,531
1,951,419
1,885,171
1,827,562
Total loans including loans held for sale but excluding PPP
6,884,559
6,831,561
6,836,070
6,694,669
6,574,728
Undisbursed construction loan funds - residential
$
72,748
$
82,689
$
102,198
$
157,934
$
209,306
Undisbursed construction loan funds - commercial
208,718
284,610
353,455
446,294
463,469
Undisbursed construction loan funds - total
281,466
367,299
455,653
604,228
672,775
Total construction loans including undisbursed funds
$
838,823
$
921,438
$
1,039,689
$
1,185,947
$
1,278,255
Gross loans (2)
$
7,007,586
$
7,051,842
$
7,152,285
$
7,168,836
$
7,122,338
Fixed rate loans %
49.3
%
49.8
%
49.8
%
49.5
%
48.8
%
Floating rate loans %
15.6
%
15.8
%
15.9
%
13.4
%
14.3
%
Adjustable rate loans repricing within 1 year %
3.4
%
2.9
%
1.5
%
2.0
%
2.6
%
Adjustable rate loans repricing over 1 year %
31.7
%
31.5
%
32.8
%
35.1
%
34.3
%
Commercial Real Estate Loans Composition Non owner
occupied excluding office
$
1,027,801
$
1,023,585
$
1,012,400
$
947,442
$
934,760
Non owner occupied office
205,302
207,869
225,046
220,668
222,300
Owner occupied excluding office
653,849
597,303
603,650
609,203
578,514
Owner occupied office
113,679
106,761
107,240
109,014
108,087
Multifamily
642,651
627,602
633,909
661,996
660,823
Agriculture land
121,544
119,710
123,104
122,384
125,384
Other commercial real estate
75,079
137,580
143,061
142,734
132,443
Total commercial real estate loans
$
2,839,905
$
2,820,410
$
2,848,410
$
2,813,441
$
2,762,311
Capital Balances Total equity
$
975,627
$
919,567
$
936,971
$
914,450
$
887,721
Less: Regulatory goodwill and intangibles
302,706
303,740
304,818
330,711
331,981
Less: Accumulated other comprehensive income/(loss) ("AOCI")
(153,719
)
(200,282
)
(168,721
)
(153,709
)
(173,460
)
Common equity tier 1 capital ("CET1")
826,640
816,109
800,874
737,448
729,200
Add: Tier 1 subordinated debt
35,000
35,000
35,000
35,000
35,000
Tier 1 capital
861,640
851,109
835,874
772,448
764,200
Add: Regulatory allowances
80,231
80,791
80,812
80,003
78,780
Add: Tier 2 subordinated debt
50,000
50,000
50,000
50,000
50,000
Total risk-based capital
$
991,871
$
981,900
$
966,686
$
902,451
$
892,980
Total risk-weighted assets
$
7,062,671
$
7,329,471
$
7,381,940
$
7,370,704
$
7,355,979
Capital Ratios CET1 Ratio
11.70
%
11.13
%
10.85
%
10.01
%
9.91
%
CET1 Ratio including AOCI
9.53
%
8.40
%
8.56
%
7.92
%
7.55
%
Tier 1 Capital Ratio
12.20
%
11.61
%
11.32
%
10.48
%
10.39
%
Tier 1 Capital Ratio including AOCI
10.02
%
8.88
%
9.04
%
8.39
%
8.03
%
Total Capital Ratio
14.04
%
13.39
%
13.10
%
12.24
%
12.14
%
Total Capital Ratio including AOCI
11.87
%
10.66
%
10.81
%
10.16
%
9.78
%
(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 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
%
September 30, 2023 One to four family residential real
estate
$
1,797,676
$
1,778,106
$
7,857
0.44
%
$
11,713
0.65
%
Construction
921,438
921,438
-
0.00
%
-
0.00
%
Commercial real estate
2,820,410
2,809,421
24
0.00
%
10,965
0.39
%
Commercial
1,039,465
1,025,632
1,670
0.16
%
12,163
1.17
%
Home equity and improvement
269,053
263,806
3,471
1.29
%
1,776
0.66
%
Consumer finance
203,800
196,754
4,200
2.06
%
2,846
1.40
%
Gross loans
$
7,051,842
$
6,995,157
$
17,222
0.24
%
$
39,463
0.56
%
December 31, 2022 One to four family residential real estate
$
1,535,574
$
1,520,074
$
6,792
0.44
%
$
8,708
0.57
%
Construction
1,278,255
1,277,818
437
0.03
%
-
0.00
%
Commercial real estate
2,762,311
2,747,539
1,205
0.04
%
13,567
0.49
%
Commercial
1,055,180
1,047,829
497
0.05
%
6,854
0.65
%
Home equity and improvement
277,613
270,138
5,216
1.88
%
2,259
0.81
%
Consumer finance
213,405
206,779
4,192
1.96
%
2,434
1.14
%
Gross loans
$
7,122,338
$
7,070,177
$
18,339
0.26
%
$
33,822
0.47
%
Loan Risk Ratings Information (dollars in thousands)
Total Balance Pass Rated Special Mention %
of Total Classified % of Total 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
%
September 30, 2023 One to four family residential real
estate
$
1,786,659
$
1,775,530
$
422
0.02
%
$
10,707
0.60
%
Construction
921,438
913,605
7,833
0.85
%
-
0.00
%
Commercial real estate
2,819,121
2,738,398
54,523
1.93
%
26,200
0.93
%
Commercial
1,034,943
982,927
31,930
3.09
%
20,086
1.94
%
Home equity and improvement
267,106
265,975
-
0.00
%
1,131
0.42
%
Consumer finance
203,584
200,965
-
0.00
%
2,619
1.29
%
PCD loans
18,991
13,374
2,814
14.82
%
2,803
14.76
%
Gross loans
$
7,051,842
$
6,890,774
$
97,522
1.38
%
$
63,546
0.90
%
December 31, 2022 One to four family residential real estate
$
1,524,029
$
1,514,719
$
935
0.06
%
$
8,375
0.55
%
Construction
1,278,255
1,278,255
-
0.00
%
-
0.00
%
Commercial real estate
2,760,766
2,694,443
46,029
1.67
%
20,294
0.74
%
Commercial
1,050,122
1,016,973
26,319
2.51
%
6,830
0.65
%
Home equity and improvement
275,204
273,613
-
0.00
%
1,591
0.58
%
Consumer finance
213,131
210,760
-
0.00
%
2,371
1.11
%
PCD loans
20,831
13,904
2,590
12.43
%
4,337
20.82
%
Gross loans
$
7,122,338
$
7,002,667
$
75,873
1.07
%
$
43,798
0.61
%
Premier Financial Corp. Mortgage and Credit
Information (dollars in thousands)
As of and for the Three
Months Ended Year Ended Mortgage Banking Summary
12/31/23 9/30/23 6/30/23 3/31/23 12/31/22
12/31/23
12/31/22 Revenue from sales and servicing of mortgage loans:
Mortgage banking gains, net
$
439
$
2,584
$
2,242
$
(837
)
$
(1,285
)
$
4,429
$
5,787
Mortgage loan servicing revenue (expense): Mortgage loan servicing
revenue
1,844
1,850
1,845
1,888
1,862
7,427
7,464
Amortization of mortgage servicing rights
(1,257
)
(1,291
)
(1,277
)
(1,219
)
(1,271
)
(5,044
)
(5,399
)
Mortgage servicing rights valuation adjustments
(224
)
131
130
(106
)
396
(69
)
2,019
363
690
698
563
987
2,314
4,084
Total revenue from sale/servicing of mortgage loans
$
802
$
3,274
$
2,940
$
(274
)
$
(298
)
$
6,743
$
9,871
Mortgage servicing rights: Balance at beginning of period
$
20,174
$
20,823
$
21,447
$
21,858
$
21,915
$
21,858
$
22,244
Loans sold, servicing retained
535
642
653
808
1,214
2,638
5,013
Amortization
(1,257
)
(1,291
)
(1,277
)
(1,219
)
(1,271
)
(5,044
)
(5,399
)
Balance at end of period
19,452
20,174
20,823
21,447
21,858
19,452
21,858
Valuation allowance: Balance at beginning of period
(532
)
(663
)
(793
)
(687
)
(1,083
)
(687
)
(2,706
)
Impairment recovery (charges)
(224
)
131
130
(106
)
396
(69
)
2,019
Balance at end of period
(756
)
(532
)
(663
)
(793
)
(687
)
(756
)
(687
)
Net carrying value at end of period
$
18,696
$
19,642
$
20,160
$
20,654
$
21,171
$
18,696
$
21,171
Allowance for credit losses - loans Beginning
allowance
$
76,513
$
75,921
$
74,273
$
72,816
$
70,626
$
72,816
$
66,468
Provision (benefit) for credit losses - loans
2,143
245
1,410
3,944
3,020
7,742
12,503
Net recoveries (charge-offs)
(2,144
)
347
238
(2,487
)
(830
)
(4,046
)
(6,155
)
Ending allowance
$
76,512
$
76,513
$
75,921
$
74,273
$
72,816
$
76,512
$
72,816
Total loans
$
6,739,387
$
6,696,869
$
6,708,568
$
6,575,829
$
6,460,620
Less: PPP loans
(469
)
(526
)
(577
)
(791
)
(1,143
)
Total loans ex PPP
$
6,738,918
$
6,696,343
$
6,707,991
$
6,575,038
$
6,459,477
Allowance for credit losses (ACL)
$
76,512
$
76,513
$
75,921
$
74,273
$
72,816
Add: Unaccreted purchase accounting marks
1,160
1,526
1,901
2,301
2,706
Adjusted ACL
$
77,672
$
78,039
$
77,822
$
76,574
$
75,522
ACL/Loans
1.14
%
1.14
%
1.13
%
1.13
%
1.13
%
Adjusted ACL/Loans ex PPP
1.15
%
1.17
%
1.16
%
1.16
%
1.17
%
Credit Quality Total non-performing loans (1)
$
35,491
$
39,463
$
36,991
$
34,377
$
33,822
Real estate owned (REO)
243
387
561
393
619
Total non-performing assets (2)
$
35,734
$
39,850
$
37,552
$
34,770
$
34,441
Net charge-offs (recoveries)
2,144
(347
)
(238
)
2,487
830
Allowance for credit losses / non-performing assets
214.12
%
192.00
%
202.18
%
213.61
%
211.42
%
Allowance for credit losses / non-performing loans
215.58
%
193.89
%
205.24
%
216.05
%
215.29
%
Non-performing assets / loans plus REO
0.53
%
0.60
%
0.56
%
0.53
%
0.53
%
Non-performing assets / total assets
0.41
%
0.47
%
0.44
%
0.41
%
0.41
%
Net charge-offs (recoveries) / average loans
0.13
%
-0.02
%
-0.01
%
0.15
%
0.05
%
Net charge-offs (recoveries) / average loans LTM
0.06
%
0.04
%
0.14
%
0.14
%
0.10
%
(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 Year Ended (In thousands, except
per share and ratio data)
12/31/23 9/30/23 6/30/23 3/31/23
12/31/22
12/31/23 12/31/22 Total non-interest expenses
$
37,893
$
38,052
$
44,495
$
42,791
$
43,028
$
163,231
$
164,511
Less: Transaction costs (pre-tax)
-
-
3,652
-
-
3,652
-
Core non-interest expenses
$
37,893
$
38,052
$
40,843
$
42,791
$
43,028
$
159,579
$
164,511
Average total assets
$
8,536,193
$
8,582,219
$
8,597,786
$
8,433,100
$
8,304,462
$
8,537,730
$
7,932,398
Core non-interest expenses / average assets
1.76
%
1.76
%
1.91
%
2.06
%
2.06
%
1.87
%
2.07
%
Non-interest income
$
11,789
$
13,253
$
53,346
$
12,462
$
14,228
$
90,849
$
62,160
Less: Gain on sale of insurance agency (pre-tax)
-
-
36,296
-
-
36,296
-
Core non-interest income
$
11,789
$
13,253
$
17,050
$
12,462
$
14,228
$
54,553
$
62,160
Less: Securities gains (losses)
675
256
64
(1,411
)
1,210
(416
)
(550
)
Core non-interest income (ex securities gains/losses)
$
11,114
$
12,997
$
16,986
$
13,873
$
13,018
$
54,969
$
62,710
Tax-equivalent net interest income
$
52,593
$
54,318
$
54,059
$
56,391
$
62,783
$
217,360
$
243,735
Core non-interest income (ex securities gains/losses)
11,114
12,997
16,986
13,873
13,018
54,969
62,710
Total core revenues
63,707
67,315
71,045
70,264
75,801
272,329
306,445
Core non-interest expenses
$
37,893
$
38,052
$
40,843
$
42,791
$
43,028
$
159,579
$
164,511
Core efficiency ratio
59.48
%
56.53
%
57.49
%
60.90
%
56.76
%
58.60
%
53.68
%
Income (loss) before income taxes
$
24,686
$
30,238
$
62,303
$
22,252
$
31,045
$
139,477
$
126,283
Add: Provision (benefit) for credit losses
1,761
(773
)
540
3,706
2,774
5,234
14,287
Pre-tax pre-provision income
26,447
29,465
62,843
25,958
33,819
144,711
140,570
Add: Transaction costs (pre-tax)
-
-
3,652
-
-
3,652
-
Less: Gain on sale of insurance agency (pre-tax)
-
-
36,296
-
-
36,296
-
Core pre-tax pre-provision income
$
26,447
$
29,465
$
30,199
$
25,958
$
33,819
$
112,067
$
140,570
Average total assets
$
8,536,193
$
8,582,219
$
8,597,786
$
8,433,100
$
8,304,462
$
8,537,730
$
7,932,398
Core pre-tax pre-provision return on average assets
1.23
%
1.36
%
1.41
%
1.25
%
1.62
%
1.31
%
1.77
%
Net income (loss)
$
20,070
$
24,687
$
48,391
$
18,149
$
25,275
$
111,295
$
102,187
Less: Gain on sale of insurance agency (pre-tax)
-
-
36,296
-
-
36,296
-
Add: Transaction costs (pre-tax)
-
-
3,652
-
-
3,652
-
Add: Tax impact of sale transaction
-
-
8,483
-
-
8,483
-
Core net income
$
20,070
$
24,687
$
24,230
$
18,149
$
25,275
$
87,134
$
102,187
Diluted shares - Reported
35,772
35,794
35,800
35,719
35,790
35,781
35,809
Core diluted EPS
$
0.56
$
0.69
$
0.68
$
0.51
$
0.71
$
2.44
$
2.85
Average total assets
$
8,536,193
$
8,582,219
$
8,597,786
$
8,433,100
$
8,304,462
$
8,537,730
$
7,932,398
Core return on average assets
0.93
%
1.14
%
1.13
%
0.87
%
1.21
%
1.02
%
1.29
%
Average total equity
$
930,835
$
939,456
$
921,441
$
901,587
$
875,287
$
923,454
$
927,534
Core return on average equity
8.55
%
10.43
%
10.55
%
8.16
%
11.46
%
9.44
%
11.02
%
Average total tangible equity
$
622,592
$
630,126
$
586,579
$
565,169
$
538,080
$
601,353
$
588,279
Core return on average tangible equity
12.79
%
15.54
%
16.57
%
13.02
%
18.64
%
14.49
%
17.37
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240123702817/en/
Paul Nungester EVP and CFO 419.785.8700
PNungester@yourpremierbank.com
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