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
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