Declared dividend of $0.31 per share
Third Quarter
Highlights
- Announced strategic merger with Wesbanco, Inc.
- Earnings per share of $0.46 or $0.54 excluding transaction
costs, increases of $0.01 and $0.09, respectively, from second
quarter
- Average deposits excluding brokereds increased 5% annualized
from second quarter
- Average interest-earning assets increased 1% annualized from
second quarter
- Net interest margin increased four basis points to 2.50% from
second quarter
- Book value per share of $28.43 and tangible book value per
share of $19.92, increases of 16% and 24% annualized, respectively,
from second quarter
Premier Financial Corp. (Nasdaq: PFC) (“Premier” or the
“Company”) announced today 2024 third quarter results.
Strategic merger
On July 26, 2024, PFC and Wesbanco, Inc. (Nasdaq: WSBC)
announced the signing of a definitive merger agreement under which
PFC will merge into WSBC in a stock-for-stock transaction. Under
the terms of the merger agreement, shareholders of PFC will receive
0.80 shares of WSBC common stock for each share of PFC common
stock. Premier Bank, a wholly owned subsidiary of PFC, will merge
into Wesbanco Bank, Inc., a wholly owned subsidiary of WSBC. Upon
closing, PFC shareholders will own approximately 30% of the
combined company. The transaction is expected to close in the first
quarter of 2025, subject to the approval of shareholders of both
PFC and WSBC and regulatory approvals, as well as satisfaction or
waiver of other customary closing conditions. Additional
information can be found in the press release announcing the merger
dated July 26, 2024.
Quarterly results
Net income for the third quarter of 2024 was $16.7 million, or
$0.46 per diluted common share, compared to income of $24.7
million, or $0.69 per diluted common share, for the third quarter
of 2023. Third quarter 2024 results included the impact of
transaction costs for the strategic merger totaling $2.8 million
pre-tax or $0.08 per diluted common share after-tax. Excluding the
impact of these transaction costs, third quarter 2024 earnings were
$19.3 million or $0.54 per diluted common share.
Net interest income and margin
Net interest income of $50.3 million on a tax equivalent (“TE”)
basis in the third quarter of 2024 was up 1.9% from $49.3 million
in the second quarter of 2024 and down 7.5% from $54.3 million in
the third quarter of 2023. The TE net interest margin of 2.50% in
the third quarter of 2024 increased four basis points from 2.46% in
the second quarter of 2024 but decreased 23 basis points from 2.73%
in the third quarter of 2023. These results are primarily impacted
by changes in deposit balances/costs and loan balances/yields.
Total loans including held-for-sale decreased $110.4 million,
during the third quarter of 2024, primarily due to an $87.2 million
decrease in commercial loans. Total average loan yields increased
seven basis points to 5.33% for the third quarter of 2024. This
increase was primarily due to origination of higher yielding loans
and payoffs of lower yielding loans.
Total deposits decreased $35.9 million during the third quarter
of 2024 from the second quarter of 2024 due to a $95.3 million
decrease in brokered deposits offset partly by an increase of $59.4
million in customer deposits. Total average interest-bearing
deposit costs increased five basis points to 3.15% during the third
quarter of 2024 from the second quarter of 2024. This increase was
primarily due to new customer acquisitions and continued migration
of customers from lower cost to higher cost deposits products.
Beginning in March 2024 and through September 2024, management
implemented rate reductions in certain deposit tiers. The benefit
of those actions began to be realized in third quarter 2024 as the
average cost of customer interest-bearing deposits declined from
June to September. In addition, partly due to the Federal Funds
Rate reduction in mid-September, wholesale funding average costs
for FHLB, brokered deposits and other borrowings also declined from
June to September. As a result, total cost of funds decreased and
net interest margin increased from June to September.
Non-interest income
Total non-interest income in the third quarter of 2024 of $12.6
million was up 4.1% from $12.1 million in the second quarter of
2024, primarily due to gains on equity securities, but down 5.1%
from $13.3 million in the third quarter of 2023, primarily due to
mortgage banking income. Mortgage banking income decreased $0.9
million on a linked quarter basis and $2.1 million from third
quarter 2023, primarily as a result of fluctuations in gain on sale
margins and MSR valuation adjustments. During the third quarter of
2024, the company completed an aged loans sale that reduced gains
on sale by approximately $0.3 million.
Security gains were $410 thousand in the third quarter of 2024,
compared to losses of $176 thousand in the second quarter of 2024
and gains of $256 thousand in the third quarter of 2023, primarily
due to valuation changes on equity securities. Service fees in the
third quarter of 2024 were $7.8 million, a 10.7% increase from $7.0
million in the second quarter of 2024, and an 11.6% increase from
$6.9 million in the third quarter of 2023. This change was
primarily due to fluctuations in loan fees, including commercial
customer swap activity. Wealth management income of $1.9 million in
the third quarter of 2024 was up slightly from $1.8 million in the
second quarter of 2024 and 24.5% higher than $1.5 million in the
third quarter of 2023. BOLI income of $1.2 million in the third
quarter of 2024, compared to $1.2 million in the second quarter of
2024, and $1.1 million in the third quarter of 2023 with no claim
gains in any period.
Non-interest expenses
Excluding transaction costs, non-interest expenses in the third
quarter of 2024 were $39.1 million, a 2.5% increase from $38.2
million in the second quarter of 2024, and a 2.8% increase from
$38.1 million in the third quarter of 2023. Compensation and
benefits were $21.8 million in the third quarter of 2024, compared
to $21.4 million in the second quarter of 2024 and $21.8 million in
the third quarter of 2023. The linked quarter increase was
primarily due to higher health insurance costs. Data processing
costs were $5.1 million in the third quarter of 2024, compared to
$5.1 million in the second quarter of 2024 and $4.0 million in the
third 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 increased a net $0.5 million on a linked
quarter basis and a net $49 thousand from third quarter 2023
primarily due to a $0.2 million of loss on sale for a closed
branch. The core efficiency ratio for the third quarter of 2024 was
62.7% compared to 62.0% in the second quarter of 2024 and 56.5% in
the third quarter of 2023. The ratio of core non-interest expenses
to average assets was 1.79% for the third quarter of 2024 compared
to 1.78% for the second quarter of 2024 and from 1.76% for the
third quarter of 2023.
Credit quality
Non-performing assets totaled $82.3 million, or 0.94% of assets,
at September 30, 2024, an increase from $64.6 million at June 30,
2024, and from $39.9 million at September 30, 2023. The linked
quarter increase was primarily due to two multifamily commercial
relationships. Loan delinquencies decreased to $17.2 million, or
0.25% of loans, at September 30, 2024, from $24.6 million at June
30, 2024, and from $17.2 million at September 30, 2023. Criticized
loans totaled $245.7 million, or 3.62% of loans, as of September
30, 2024, an increase from $207.8 million at June 30, 2024, and
from $161.1 million at September 30, 2023.
The 2024 third quarter results include net charge-offs of $0.6
million and a total provision benefit of $0.3 million, compared
with net loan recoveries of $0.3 million and a total provision
benefit of $0.8 million for the same period in 2023. The change in
provision is primarily due to lower loan balances. The allowance
for credit losses as a percentage of total loans was 1.16% at
September 30, 2024, compared with 1.16% at June 30, 2024, and 1.14%
at September 30, 2023.
Year to date results
Net income for the first nine months of 2024 was $50.6 million,
or $1.41 per diluted common share, compared to income of $91.2
million, or $2.55 per diluted common share for the first nine
months of 2023. 2024 results included the impact of transaction
costs for the strategic merger totaling $2.8 million pre-tax or
$0.08 per diluted common share after-tax. Excluding the impact of
these transaction costs, 2024 core earnings were $53.3 million or
$1.49 per diluted common share. 2023 results included 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 common share
after-tax. Excluding the impact of this item, 2023 core earnings
were income of $67.1 million or $1.87 per diluted common share.
Net interest income of $149.2 million on a TE basis for the
first nine months of 2024 was down 9.4% from $164.8 million in the
first nine months of 2023. The TE net interest margin of 2.49% in
the first nine months of 2024 decreased 29 basis points from 2.78%
in the first nine months of 2023. These results are positively
impacted by higher loan yields, which were 5.26% for the first nine
months of 2024 compared to 4.88% in the first nine months of 2023.
These results are negatively impacted by an increase in the cost of
funds in the first nine months of 2024 of 2.59%, up 72 basis points
from the first nine months of 2023. The year-over-year increase is
largely due to increasing costs of customer deposits.
Total non-interest income in the first nine months of 2024 of
$37.1 million was up 9.6% from $33.9 million in the first nine
months of 2023, excluding insurance commissions and the gain on the
sale of the insurance agency. Mortgage banking income decreased
$0.3 million year-over-year primarily as a result of a $0.6 million
decrease in gains due to lower margins.
Security gains were $0.2 million in the first nine months of
2024 compared to $1.1 million in losses during the first nine
months of 2023, primarily due to valuations on equity securities.
The company also sold $21 million of AFS securities for a $27
thousand gain with average yields less than FHLB borrowing rates
during the first nine months of 2023. Service fees in the first
nine months of 2024 were $21.2 million, a 3.2% increase from $20.6
million in the first nine months of 2023, primarily due to
fluctuations in loan fees including commercial customer swap
activity and consumer activity for interchange and ATM/NSF charges.
Due to the insurance agency sale on June 30, 2023, there were no
insurance commissions in the first nine months of 2024, compared to
$8.9 million in the first nine months of 2023. Wealth management
income of $5.4 million in the first nine months of 2024 was up
19.9% from $4.5 million in the first nine months of 2023. BOLI
income of $4.1 million in the first nine months of 2024 included
$0.5 million of claim gains, compared to $3.5 million in the first
nine months of 2023, including $0.4 million of claim gains.
Excluding transaction costs, non-interest expenses in the first
nine months of 2024 were $117.2 million, a 3.7% decrease from
$121.7 million in the first nine months of 2023. Compensation and
benefits were $66.5 million in the first nine months of 2024,
compared to $71.6 million in the first nine months of 2023. 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 merit
adjustments. FDIC premiums decreased $1.0 million on a
year-over-year basis primarily due to lower rates. Data processing
costs were $14.8 million in the first nine months of 2024, compared
to $11.5 million in the first nine months 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 $1.7 million on a year-over-year basis due to the insurance
agency sale and cost saving initiatives. The core efficiency ratio
for the first nine months of 2024 of 63.0% increased from 58.3% in
the first nine months of 2023 due to lower revenues partly offset
by cost saving initiatives that began during the second quarter of
2023. The ratio of core non-interest expenses to average assets
improved to 1.81% for the first nine months of 2024 from 1.91% for
the first nine months of 2023.
The 2024 first nine months results include net loan charge-offs
of $3.6 million and a total provision expense of $2.5 million,
compared with net loan charge-offs of $1.9 million and a total
provision expense of $3.5 million for the same period in 2023. The
year-over-year change in provision expense is primarily due to a
decrease in loans during the first nine months of 2024 compared to
an increase in loans during the first nine months of 2023.
Total assets at $8.73 billion
Total assets at September 30, 2024, were $8.73 billion, compared
to $8.78 billion at June 30, 2024, and $8.56 billion at September
30, 2023. Loans receivable were $6.59 billion at September 30,
2024, compared to $6.68 billion at June 30, 2024, and $6.70 billion
at September 30, 2023. Securities at September 30, 2024, were $1.20
billion, compared to $1.09 billion at June 30, 2024, and $0.92
billion at September 30, 2023. All securities are either AFS or
trading and are reflected at fair value on the balance sheet. Also,
at September 30, 2024, goodwill and other intangible assets totaled
$304.9 million compared to $305.9 million at June 30, 2024, and
$308.8 million at September 30, 2023, with the decreases due to
amortization of intangibles.
Total non-brokered deposits at September 30, 2024, were $6.86
billion, compared with $6.80 billion at June 30, 2024, and $6.67
billion at September 30, 2023. Brokered deposits were $287.4
million at September 30, 2024, compared to $382.7 million at June
30, 2024 and $392.2 million at September 30, 2023. FHLB borrowings
decreased to $345.0 million at September 30, 2024, from $393.0
million at June 30, 2024, but increased from $339.0 million at
September 30, 2023.
Total stockholders’ equity was $1.02 billion at September 30,
2024, compared to $0.98 billion at June 30, 2024, and $0.92 billion
at September 30, 2023, with the increases primarily due to
improvements in accumulated other comprehensive income. Excluding
goodwill and intangibles, tangible equity was $714.1 million at
September 30, 2024, an increase from $673.3 million at June 30,
2024, and from $610.7 million at September 30, 2023.
Regulatory ratios all improved during the third quarter of 2024,
including CET1 of 12.17%, Tier 1 of 12.67% and Total Capital of
14.53%. All of these ratios also exceed well-capitalized guidelines
pro forma for including accumulated other comprehensive income
(“AOCI”), including CET1 of 10.32%, Tier 1 of 10.82% and Total
Capital of 12.68%.
Dividend to be paid November 15
The Board of Directors declared a quarterly cash dividend of
$0.31 per common share payable November 15, 2024, to shareholders
of record at the close of business on November 8, 2024. The
dividend represents an annual dividend yield of 5.2% percent based
on the Premier common stock closing price on October 21, 2024.
Premier has approximately 35,841,000 common shares outstanding.
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 73 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. (“Premier”) and its management, and include
statements related to the expected timing, completion and benefits
of the proposed merger with WesBanco, Inc. (“WesBanco”) (the
‘Merger”), future movements of interest rates, 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
document 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, including with respect to the Merger. 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. Factors that could cause or
contribute to such differences include, but are not limited to, (1)
the businesses of Premier and WesBanco may not be integrated
successfully or such integration may take longer to accomplish than
expected, (2) the expected cost savings and any revenue synergies
from the proposed Merger may not be fully realized within the
expected timeframes, (3) disruption from the proposed Merger may
make it more difficult to maintain relationships with customers,
associates, or suppliers, (4) the required governmental approvals
of the proposed Merger may not be obtained on the expected terms
and schedule, (5) Premier’s shareholders and/or WesBanco’s
shareholders may not approve the proposed Merger and the merger
agreement, and WesBanco’s shareholders may not approve the issuance
of shares of WesBanco common stock in the proposed Merger. Further
information regarding additional factors that could affect the
forward-looking statements can be found in the cautionary language
included under the headings “Cautionary Note Regarding
Forward-Looking Statements” (in the case of Premier),
“Forward-Looking Statements” (in the case of WesBanco), and “Risk
Factors” in Premier’s and WesBanco’s Annual Reports on Form 10-K
for the year ended December 31, 2023, and other documents
subsequently filed by Premier and WesBanco with the SEC. These
risks and uncertainties include 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 document 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 September 30, 2024, consolidated financial
statements as part of its Quarterly Report on Form 10-Q to be filed
with the SEC, including with respect to the Merger. 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 useful supplemental measures 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 impacts of the insurance
agency gain on sale and 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 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 non-GAAP reporting
measures.
Consolidated Balance Sheets (Unaudited) Premier Financial
Corp. September 30, June 30, March 31, December
31, September 30, (in thousands)
2024
2024
2024
2023
2023
Assets Cash and cash equivalents Cash and amounts due
from depositories
$
84,573
$
72,053
$
57,956
$
81,973
$
70,642
Interest-bearing deposits
40,709
83,598
31,725
32,783
46,855
125,282
155,651
89,681
114,756
117,497
Available-for-sale, carried at fair value
1,196,258
1,081,120
1,014,433
946,708
911,184
Equity securities, carried at fair value
5,970
5,559
5,736
5,773
5,860
Securities investments
1,202,228
1,086,679
1,020,169
952,481
917,044
Loans (1)
6,588,728
6,682,138
6,693,745
6,739,387
6,696,869
Allowance for credit losses - loans
(76,142
)
(77,222
)
(76,679
)
(76,512
)
(76,513
)
Loans, net
6,512,586
6,604,916
6,617,066
6,662,875
6,620,356
Loans held for sale
121,611
138,604
137,523
145,641
135,218
Mortgage servicing rights
17,650
18,140
18,628
18,696
19,642
Accrued interest receivable
34,959
35,334
34,795
33,446
34,648
Federal Home Loan Bank stock
24,315
32,189
26,075
21,760
25,049
Bank Owned Life Insurance
184,655
183,409
182,203
181,544
172,906
Office properties and equipment
54,414
55,073
57,231
56,878
55,679
Real estate and other assets held for sale
326
394
255
243
387
Goodwill
295,602
295,602
295,602
295,602
295,602
Core deposit and other intangibles
9,346
10,250
11,196
12,186
13,220
Other assets
146,331
162,452
140,630
129,841
155,628
Total Assets
$
8,729,305
$
8,778,693
$
8,631,054
$
8,625,949
$
8,562,876
Liabilities and Stockholders’ Equity
Non-interest-bearing deposits
$
1,425,182
$
1,438,764
$
1,467,161
$
1,591,979
$
1,545,595
Interest-bearing deposits
5,430,061
5,357,112
5,347,444
5,209,123
5,127,863
Brokered deposits
287,393
382,678
368,782
341,944
392,181
Total deposits
7,142,636
7,178,554
7,183,387
7,143,046
7,065,639
Advances from FHLB
345,000
393,000
253,000
280,000
339,000
Subordinated debentures
85,324
85,292
85,261
85,229
85,197
Advance payments by borrowers
13,358
13,391
16,861
23,277
22,781
Reserve for credit losses - unfunded commitments
3,722
3,343
3,614
4,307
4,690
Other liabilities
120,258
125,984
114,590
114,463
126,002
Total Liabilities
7,710,298
7,799,564
7,656,713
7,650,322
7,643,309
Stockholders’ Equity Preferred stock
-
-
-
-
-
Common stock, net
306
306
306
306
306
Additional paid-in-capital
690,150
689,743
689,468
690,585
690,038
Accumulated other comprehensive income (loss)
(129,149
)
(163,038
)
(162,081
)
(153,719
)
(200,282
)
Retained earnings
587,269
581,715
576,648
569,937
560,945
Treasury stock, at cost
(129,569
)
(129,597
)
(130,000
)
(131,482
)
(131,440
)
Total Stockholders’ Equity
1,019,007
979,129
974,341
975,627
919,567
Total Liabilities and Stockholders’ Equity
$
8,729,305
$
8,778,693
$
8,631,054
$
8,625,949
$
8,562,876
(1) Includes PPP loans of:
$
324
$
369
$
417
$
469
$
526
Consolidated Statements of Income (Unaudited) Premier
Financial Corp. Three Months Ended Nine Months
Ended (in thousands, except per share amounts)
9/30/24
6/30/24 3/31/24 12/31/23 9/30/23
9/30/24 9/30/23 Interest
Income: Loans
$
88,942
$
88,560
$
87,597
$
87,924
$
86,612
$
265,099
$
244,285
Investment securities
9,978
8,666
7,602
7,013
6,943
26,246
21,201
Interest-bearing deposits
654
638
609
740
652
1,901
1,737
FHLB stock dividends
595
606
534
621
690
1,735
1,989
Total interest income
100,169
98,470
96,342
96,298
94,897
294,981
269,212
Interest Expense: Deposits
45,529
43,927
42,567
39,250
34,874
132,023
83,157
FHLB advances
3,307
4,159
3,039
3,328
4,597
10,505
18,150
Subordinated debentures
1,152
1,159
1,162
1,169
1,162
3,473
3,362
Notes Payable
-
-
-
-
-
-
-
Total interest expense
49,988
49,245
46,768
43,747
40,633
146,001
104,669
Net interest income
50,181
49,225
49,574
52,551
54,264
148,980
164,543
Provision (benefit) for credit losses - loans
(475
)
3,173
560
2,143
245
3,258
5,599
Provision (benefit) for credit losses - unfundedcommitments
185
(271
)
(693
)
(382
)
(1,018
)
(780
)
(2,126
)
Total provision (benefit) for credit losses
(290
)
2,902
(133
)
1,761
(773
)
2,478
3,473
Net interest income after provision
50,471
46,323
49,707
50,790
55,037
146,502
161,070
Non-interest Income: Service fees and other charges
7,756
7,008
6,467
6,761
6,947
21,231
20,564
Mortgage banking income
1,194
2,047
2,350
802
3,274
5,591
5,940
Gain (loss) on sale of non-mortgage loans
-
-
67
94
-
67
71
Gain (loss) on sale of available for sale securities
-
-
-
10
-
-
27
Gain (loss) on equity securities
410
(176
)
(37
)
665
256
197
(1,118
)
Gain on sale of insurance agency
-
-
-
-
-
-
36,296
Insurance commissions
-
-
-
-
-
-
8,856
Wealth management income
1,878
1,842
1,713
1,791
1,509
5,433
4,531
Income from Bank Owned Life Insurance
1,245
1,207
1,697
1,532
1,050
4,149
3,482
Other non-interest income
91
150
239
134
217
480
412
Total non-interest Income
12,574
12,078
12,496
11,789
13,253
37,148
79,061
Non-interest Expense: Compensation and benefits
21,794
21,353
23,394
20,963
21,813
66,541
71,646
Occupancy
3,462
3,434
3,365
3,318
3,145
10,261
10,039
FDIC insurance premium
1,200
1,150
1,120
1,383
1,346
3,470
4,420
Financial institutions tax
1,007
980
1,035
761
989
3,022
2,802
Data processing
5,055
5,067
4,670
4,678
4,010
14,792
11,513
Amortization of intangibles
904
946
990
1,033
1,078
2,840
3,571
Other non-interest expense
5,704
5,228
5,326
5,757
5,671
16,259
17,695
Total non-interest operating expenses
39,126
38,158
39,900
37,893
38,052
117,185
121,686
Transaction costs
2,789
50
-
-
-
2,839
3,652
Total non-interest expenses
41,915
38,208
39,900
37,893
38,052
120,024
125,338
Income (loss) before income taxes
21,130
20,193
22,303
24,686
30,238
63,626
114,793
Income tax expense (benefit)
4,465
4,017
4,514
4,616
5,551
12,996
23,566
Net income (loss)
$
16,665
$
16,176
$
17,789
$
20,070
$
24,687
$
50,630
$
91,227
Earnings per common share: Basic
$
0.46
$
0.45
$
0.50
$
0.56
$
0.69
$
1.41
$
2.55
Diluted
$
0.46
$
0.45
$
0.50
$
0.56
$
0.69
$
1.41
$
2.55
Average Shares Outstanding: Basic
35,692
35,715
35,772
35,655
35,730
35,674
35,701
Diluted
35,737
35,793
35,771
35,772
35,794
35,778
35,769
Premier Financial Corp. Selected Quarterly
Information Three Months Ended Nine Months Ended
(dollars in thousands,except per share data)
9/30/24
6/30/24 3/31/24 12/31/23 9/30/23
9/30/24 9/30/23
Summary of Operations Tax-equivalent interest income (1)
$
100,243
$
98,542
$
96,417
$
96,340
$
94,951
$
295,202
$
269,437
Interest expense
49,988
49,245
46,768
43,747
40,633
146,001
104,669
Tax-equivalent net interest income (1)
50,255
49,297
49,649
52,593
54,318
149,201
164,768
Provision expense for credit losses
(290
)
2,902
(133
)
1,761
(773
)
2,478
3,473
Non-interest income (ex securitiesgains/losses)
12,164
12,254
12,533
11,114
12,997
36,951
80,152
Core non-interest income (ex securitiesgains/losses) (2)
12,164
12,254
12,533
11,114
12,997
36,951
43,856
Non-interest expense
41,915
38,208
39,900
37,893
38,052
120,024
125,338
Core non-interest expense (2)
39,126
38,158
39,900
37,893
38,052
117,185
121,686
Income tax expense (benefit)
4,465
4,017
4,514
4,616
5,551
12,996
23,566
Net income (loss)
16,665
16,176
17,789
20,070
24,687
50,630
91,227
Core net income (2)
19,289
16,215
17,789
20,070
24,687
53,293
67,066
Tax equivalent adjustment (1)
74
72
75
42
54
221
225
At Period End Total assets
$
8,729,305
$
8,778,693
$
8,631,054
$
8,625,949
$
8,562,876
Goodwill and intangibles
304,948
305,852
306,798
307,788
308,822
Tangible assets (3)
8,424,357
8,472,841
8,324,256
8,318,161
8,254,054
Earning assets
7,901,449
7,945,986
7,832,558
7,815,540
7,744,522
Loans
6,588,728
6,682,138
6,693,745
6,739,387
6,696,869
Allowance for loan losses
76,142
77,222
76,679
76,512
76,513
Deposits
7,142,636
7,178,554
7,183,387
7,143,046
7,065,639
Stockholders’ equity
1,019,007
979,129
974,341
975,627
919,567
Stockholders’ equity / assets
11.67
%
11.15
%
11.29
%
11.31
%
10.74
%
Tangible equity (3)
714,059
673,277
667,543
667,839
610,745
Tangible equity / tangible assets
8.48
%
7.95
%
8.02
%
8.03
%
7.40
%
Average Balances Total assets
$
8,696,051
$
8,646,024
$
8,591,947
$
8,536,193
$
8,582,219
$
8,644,861
$
8,538,248
Earning assets
8,036,417
8,016,157
7,956,887
7,936,648
7,969,363
8,003,275
7,904,565
Loans
6,679,329
6,730,698
6,745,823
6,754,782
6,763,232
6,718,474
6,671,687
Deposits and interest-bearing liabilities
7,556,923
7,533,717
7,476,431
7,447,324
7,486,595
7,522,483
7,470,774
Deposits
7,205,367
7,119,191
7,144,343
7,098,265
7,045,827
7,156,479
6,893,762
Stockholders’ equity
997,845
968,451
974,560
930,835
939,456
980,349
920,967
Goodwill and intangibles
305,380
306,303
307,226
308,243
309,330
306,300
326,771
Tangible equity (3)
692,465
662,148
667,334
622,592
630,126
674,049
594,196
Per Common Share Data Earnings per share ("EPS") - Basic
$
0.46
$
0.45
$
0.50
$
0.56
$
0.69
$
1.41
$
2.55
EPS - Diluted
0.46
0.45
0.50
0.56
0.69
1.41
2.55
EPS - Core diluted (2)
0.54
0.45
0.50
0.56
0.69
1.49
1.87
Dividends Paid
0.31
0.31
0.31
0.31
0.31
0.93
0.93
Market Value: High
$
26.40
$
21.30
$
24.50
$
24.87
$
22.89
$
26.40
$
27.99
Low
19.47
18.72
18.68
15.79
15.70
18.63
13.60
Close
23.48
20.46
20.30
24.10
17.06
23.48
17.06
Common Book Value
28.43
27.32
27.20
27.31
25.74
Tangible Common Book Value (3)
19.92
18.79
18.64
18.69
17.09
Shares outstanding, end of period (000s)
35,841
35,840
35,817
35,730
35,731
Performance Ratios (annualized) Tax-equivalent net interest
margin (1)
2.50
%
2.46
%
2.50
%
2.65
%
2.73
%
2.49
%
2.78
%
Return on average assets
0.76
%
0.75
%
0.83
%
0.93
%
1.14
%
0.78
%
1.43
%
Core return on average assets (2)
0.88
%
0.75
%
0.83
%
0.93
%
1.14
%
0.82
%
1.05
%
Return on average equity
6.64
%
6.72
%
7.34
%
8.55
%
10.43
%
6.90
%
13.24
%
Core return on average equity (2)
7.69
%
6.73
%
7.34
%
8.55
%
10.43
%
7.26
%
9.74
%
Return on average tangible equity
9.57
%
9.83
%
10.72
%
12.79
%
15.54
%
10.03
%
20.53
%
Core return on average tangible equity (2)
11.08
%
9.85
%
10.72
%
12.79
%
15.54
%
10.56
%
15.09
%
Efficiency ratio (4)
67.15
%
62.08
%
64.17
%
59.48
%
56.53
%
64.48
%
51.18
%
Core efficiency ratio (2)
62.68
%
61.99
%
64.17
%
59.48
%
56.53
%
62.95
%
58.33
%
Non-interest expenses / average assets
1.92
%
1.78
%
1.87
%
1.76
%
1.76
%
1.85
%
1.96
%
Core non-interest expenses / average assets
1.79
%
1.78
%
1.87
%
1.76
%
1.76
%
1.81
%
1.91
%
Effective tax rate
21.13
%
19.89
%
20.24
%
18.70
%
18.36
%
20.43
%
20.53
%
Core effective tax rate
19.36
%
19.90
%
20.24
%
18.70
%
18.36
%
19.82
%
18.36
%
Common dividend payout ratio
67.39
%
68.89
%
62.00
%
55.36
%
44.93
%
65.96
%
36.47
%
Core common dividend payout ratio
57.41
%
68.89
%
62.00
%
55.36
%
44.93
%
62.42
%
49.73
%
(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
strategic merger and 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 Nine Months
Ended 9/30/24 6/30/24 3/31/24 12/31/23 9/30/23
9/30/24 9/30/23
Average Balances Interest-earning
assets: Loans receivable (1)
$
6,679,329
$
6,730,698
$
6,745,823
$
6,754,782
$
6,763,232
$
6,718,474
$
6,671,687
Securities
1,293,427
1,221,006
1,152,346
1,121,231
1,137,730
1,222,519
1,160,987
Interest Bearing Deposits
37,197
37,226
34,924
36,761
38,210
36,452
36,677
FHLB stock
26,464
27,227
23,794
23,874
30,191
25,830
35,214
Total interest-earning assets
8,036,417
8,016,157
7,956,887
7,936,648
7,969,363
8,003,275
7,904,565
Non-interest-earning assets
659,634
629,867
635,060
599,545
612,856
641,586
633,683
Total assets
$
8,696,051
$
8,646,024
$
8,591,947
$
8,536,193
$
8,582,219
$
8,644,861
$
8,538,248
Deposits and Interest-bearing Liabilities: Interest bearing
deposits
$
5,780,002
$
5,669,033
$
5,650,823
$
5,541,498
$
5,490,945
$
5,700,244
$
5,256,571
FHLB advances and other
266,250
329,253
246,846
263,848
355,576
280,730
491,861
Subordinated debentures
85,306
85,273
85,242
85,211
85,179
85,274
85,147
Notes payable
-
-
-
-
13
-
4
Total interest-bearing liabilities
6,131,558
6,083,559
5,982,911
5,890,557
5,931,713
6,066,248
5,833,583
Non-interest bearing deposits
1,425,365
1,450,158
1,493,520
1,556,767
1,554,882
1,456,235
1,637,191
Total including non-interest-bearing deposits
7,556,923
7,533,717
7,476,431
7,447,324
7,486,595
7,522,483
7,470,774
Other non-interest-bearing liabilities
141,283
143,856
140,956
158,034
156,168
142,029
146,507
Total liabilities
7,698,206
7,677,573
7,617,387
7,605,358
7,642,763
7,664,512
7,617,281
Stockholders' equity
997,845
968,451
974,560
930,835
939,456
980,349
920,967
Total liabilities and stockholders' equity
$
8,696,051
$
8,646,024
$
8,591,947
$
8,536,193
$
8,582,219
$
8,644,861
$
8,538,248
IEAs/IBLs
131
%
132
%
133
%
135
%
134
%
132
%
136
%
Interest Income/Expense Interest-earning
assets: Loans receivable (2)
$
88,949
$
88,567
$
87,603
$
87,929
$
86,618
$
265,119
$
244,303
Securities (2)
10,045
8,731
7,671
7,050
6,991
26,447
21,408
Interest Bearing Deposits
654
638
609
740
652
1,901
1,737
FHLB stock
595
606
534
621
690
1,735
1,989
Total interest-earning assets
100,243
98,542
96,417
96,340
94,951
295,202
269,437
Deposits and Interest-bearing Liabilities: Interest bearing
deposits
$
45,529
$
43,927
$
42,567
$
39,250
$
34,874
$
132,023
$
83,157
FHLB advances and other
3,307
4,159
3,039
3,328
4,597
10,505
18,150
Subordinated debentures
1,152
1,159
1,162
1,169
1,162
3,473
3,362
Notes payable
-
-
-
-
-
-
-
Total interest-bearing liabilities
49,988
49,245
46,768
43,747
40,633
146,001
104,669
Non-interest bearing deposits
-
-
-
-
-
-
-
Total including non-interest-bearing deposits
49,988
49,245
46,768
43,747
40,633
146,001
104,669
Net interest income
$
50,255
$
49,297
$
49,649
$
52,593
$
54,318
$
149,201
$
164,768
Annualized Average Rates Interest-earning
assets: Loans receivable
5.33
%
5.26
%
5.19
%
5.21
%
5.12
%
5.26
%
4.88
%
Securities (3)
3.11
%
2.86
%
2.66
%
2.52
%
2.46
%
2.88
%
2.46
%
Interest Bearing Deposits
7.03
%
6.86
%
6.98
%
8.05
%
6.83
%
6.95
%
6.31
%
FHLB stock
8.99
%
8.90
%
8.98
%
10.40
%
9.14
%
8.96
%
7.53
%
Total interest-earning assets
4.99
%
4.92
%
4.85
%
4.86
%
4.77
%
4.92
%
4.54
%
Deposits and Interest-bearing Liabilities: Interest bearing
deposits
3.15
%
3.10
%
3.01
%
2.83
%
2.54
%
3.09
%
2.11
%
FHLB advances and other
4.97
%
5.05
%
4.92
%
5.05
%
5.17
%
4.99
%
4.92
%
Subordinated debentures
5.40
%
5.44
%
5.45
%
5.49
%
5.46
%
5.43
%
5.26
%
Notes payable
-
-
-
-
-
-
-
Total interest-bearing liabilities
3.26
%
3.24
%
3.13
%
2.97
%
2.74
%
3.21
%
2.39
%
Non-interest bearing deposits
-
-
-
-
-
-
-
Total including non-interest-bearing deposits
2.65
%
2.61
%
2.50
%
2.35
%
2.17
%
2.59
%
1.87
%
Net interest spread
1.73
%
1.68
%
1.72
%
1.89
%
2.03
%
1.71
%
2.15
%
Net interest margin (4)
2.50
%
2.46
%
2.50
%
2.65
%
2.73
%
2.49
%
2.78
%
(1) Includes average PPP loans of:
$
346
$
394
$
442
$
495
$
553
$
394
$
729
(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
9/30/24 6/30/24 3/31/24 12/31/23 9/30/23
Ending
Balances Non-interest-bearing demand deposits
$
1,425,182
$
1,438,764
$
1,467,161
$
1,591,979
$
1,545,595
Savings deposits
616,910
632,831
656,122
677,679
709,938
Interest-bearing demand deposits
514,886
530,932
553,331
565,757
580,069
Money market account deposits
1,460,631
1,437,688
1,426,809
1,374,526
1,279,551
Time deposits
1,061,275
1,052,934
1,051,955
998,002
925,353
Public funds, ICS and CDARS deposits
1,776,359
1,702,727
1,659,227
1,593,159
1,632,952
Brokered deposits
287,393
382,678
368,782
341,944
392,181
Total deposits
$
7,142,636
$
7,178,554
$
7,183,387
$
7,143,046
$
7,065,639
Average Balances Non-interest-bearing demand deposits
$
1,425,365
$
1,450,158
$
1,493,520
$
1,556,767
$
1,554,882
Savings deposits
625,633
643,523
663,786
691,295
728,545
Interest-bearing demand deposits
522,535
546,496
547,168
557,210
575,744
Money market account deposits
1,473,901
1,430,619
1,411,075
1,331,623
1,278,381
Time deposits
1,057,478
1,049,566
1,025,946
959,420
912,579
Public funds, ICS and CDARS deposits
1,734,495
1,636,188
1,618,554
1,614,339
1,573,213
Brokered deposits
365,960
362,641
384,294
387,611
422,483
Total deposits
$
7,205,367
$
7,119,191
$
7,144,343
$
7,098,265
$
7,045,827
Average Rates Non-interest-bearing demand deposits
0.00
%
0.00
%
0.00
%
0.00
%
0.00
%
Savings deposits
0.10
%
0.03
%
0.03
%
0.03
%
0.03
%
Interest-bearing demand deposits
0.07
%
0.08
%
0.12
%
0.13
%
0.11
%
Money market account deposits
3.00
%
2.94
%
2.83
%
2.65
%
2.02
%
Time deposits
3.90
%
3.80
%
3.55
%
3.15
%
2.68
%
Public funds, ICS and CDARS deposits
4.38
%
4.52
%
4.48
%
4.30
%
4.18
%
Brokered deposits
5.40
%
5.32
%
5.33
%
5.46
%
5.36
%
Total deposits
2.53
%
2.47
%
2.38
%
2.21
%
1.98
%
Other Deposits Data Loans/Deposits Ratio
92.2
%
93.1
%
93.2
%
94.3
%
94.8
%
Uninsured deposits %
33.4
%
32.5
%
32.6
%
33.1
%
32.8
%
Adjusted uninsured deposits % (1)
17.7
%
17.0
%
17.6
%
18.9
%
17.7
%
Top 20 depositors %
15.1
%
14.4
%
14.0
%
13.9
%
14.1
%
Public funds %
19.6
%
18.9
%
18.5
%
17.9
%
18.8
%
Average account size (excluding brokered)
$
27.8
$
27.5
$
27.0
$
26.9
$
27.1
Securities Data Held-to-maturity (HTM) at fair value
$
-
$
-
$
-
$
-
$
-
Available-for-sale (AFS) at fair value (2)
1,196,258
1,081,120
1,014,433
946,708
911,184
Equity investment at fair value (3)
5,970
5,559
5,736
5,773
5,860
Total securities at fair value
$
1,202,228
$
1,086,679
$
1,020,169
$
952,481
$
917,044
Cash+Securities/Assets
15.2
%
14.2
%
12.9
%
12.4
%
12.1
%
Projected AFS cash flow in next 12 months
$
138,984
$
115,609
$
89,563
$
69,067
$
66,495
AFS average life (years)
4.4
4.9
5.3
6.2
6.5
Liquidity Sources Cash and cash equivalents
$
125,282
$
155,651
$
89,681
$
114,756
$
117,497
Unpledged securities at fair value
578,810
477,776
398,610
314,385
280,916
FHLB borrowing capacity
1,008,061
1,247,632
1,383,086
1,336,707
1,311,091
Brokered deposits
582,816
492,359
491,447
513,767
316,697
Bank and parent lines of credit
70,000
70,000
70,000
70,000
70,000
Federal Reserve - Discount Window and BTFP (4)
722,912
702,712
680,456
620,518
471,395
Total
$
3,087,881
$
3,146,130
$
3,113,280
$
2,970,133
$
2,567,596
Total liquidity to adjusted uninsured deposits ratio
241.5
%
255.7
%
244.7
%
218.3
%
204.0
%
(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)
9/30/24 6/30/24 3/31/24 12/31/23 9/30/23
Loan Portfolio
Composition Residential real estate
$
1,806,389
$
1,805,984
$
1,816,416
$
1,810,265
$
1,797,676
Residential real estate construction
3,248
9,649
15,009
28,794
51,637
Total residential loans
1,809,637
1,815,633
1,831,425
1,839,059
1,849,313
Commercial real estate
2,853,115
2,844,792
2,830,086
2,839,905
2,820,410
Commercial construction
486,369
513,652
535,294
528,563
502,502
Commercial excluding PPP
969,493
1,037,718
1,030,620
1,056,334
1,038,939
Core commercial loans (1)
4,308,977
4,396,162
4,396,000
4,424,802
4,361,851
Consumer direct/indirect
184,574
187,936
187,664
193,830
203,800
Home equity and improvement lines
271,652
268,699
265,362
267,960
269,053
Total consumer loans
456,226
456,635
453,026
461,790
472,853
Deferred loan origination fees
13,564
13,339
12,877
13,267
12,326
Core loans (1)
6,588,404
6,681,769
6,693,328
6,738,918
6,696,343
PPP loans
324
369
417
469
526
Total loans
$
6,588,728
$
6,682,138
$
6,693,745
$
6,739,387
$
6,696,869
Loans held for sale
$
121,611
$
138,604
$
137,523
$
145,641
$
135,218
Core residential loans (1)
1,931,248
1,954,237
1,968,948
1,984,700
1,984,531
Total loans including loans held for sale but excluding PPP
6,710,015
6,820,373
6,830,851
6,884,559
6,831,561
Undisbursed construction loan funds - residential
$
53,998
$
52,140
$
57,246
$
72,748
$
82,689
Undisbursed construction loan funds - commercial
159,805
123,445
151,677
208,718
284,610
Undisbursed construction loan funds - total
213,803
175,585
208,923
281,466
367,299
Total construction loans including undisbursed funds
$
703,420
$
698,886
$
759,226
$
838,823
$
921,438
Gross loans (2)
$
6,788,967
$
6,844,384
$
6,889,791
$
7,007,586
$
7,051,842
Fixed rate loans %
48.5
%
48.7
%
49.0
%
49.3
%
49.8
%
Floating rate loans %
18.2
%
16.2
%
16.5
%
15.6
%
15.8
%
Adjustable rate loans repricing within 1 year %
5.2
%
5.2
%
3.4
%
3.4
%
2.9
%
Adjustable rate loans repricing over 1 year %
28.1
%
29.9
%
31.1
%
31.7
%
31.5
%
Commercial Real Estate Loans Composition Non owner
occupied excluding office
$
1,061,894
$
1,047,892
$
1,026,598
$
1,027,801
$
1,023,585
Non owner occupied office
184,156
186,266
189,436
205,302
207,869
Owner occupied excluding office
666,454
668,327
656,825
653,849
597,303
Owner occupied office
104,792
107,555
112,706
113,679
106,761
Multifamily
645,628
642,469
652,371
642,651
627,602
Agriculture land
120,956
121,597
121,102
121,544
119,710
Other commercial real estate
69,235
70,686
71,048
75,079
137,580
Total commercial real estate loans
$
2,853,115
$
2,844,792
$
2,830,086
$
2,839,905
$
2,820,410
Capital Balances Total equity
$
1,019,007
$
979,129
$
974,341
$
975,627
$
919,567
Less: Regulatory goodwill and intangibles
299,866
300,770
301,716
302,706
303,740
Less: Accumulated other comprehensive income/(loss) ("AOCI")
(129,149
)
(163,038
)
(162,081
)
(153,719
)
(200,282
)
Common equity tier 1 capital ("CET1")
848,290
841,397
834,706
826,640
816,109
Add: Tier 1 subordinated debt
35,000
35,000
35,000
35,000
35,000
Tier 1 capital
883,290
876,397
869,706
861,640
851,109
Add: Regulatory allowances
79,377
80,247
79,827
80,231
80,791
Add: Tier 2 subordinated debt
50,000
50,000
50,000
50,000
50,000
Total risk-based capital
$
1,012,667
$
1,006,644
$
999,533
$
991,871
$
981,900
Total risk-weighted assets
$
6,970,350
$
7,062,328
$
7,013,832
$
7,066,743
$
7,329,471
Capital Ratios CET1 Ratio
12.17
%
11.91
%
11.90
%
11.70
%
11.13
%
CET1 Ratio including AOCI
10.32
%
9.61
%
9.59
%
9.52
%
8.40
%
Tier 1 Capital Ratio
12.67
%
12.41
%
12.40
%
12.19
%
11.61
%
Tier 1 Capital Ratio including AOCI
10.82
%
10.10
%
10.09
%
10.02
%
8.88
%
Total Capital Ratio
14.53
%
14.25
%
14.25
%
14.04
%
13.39
%
Total Capital Ratio including AOCI
12.68
%
11.95
%
11.94
%
11.86
%
10.66
%
(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
September 30, 2024 One to four family residential real estate
$
1,806,389
$
1,782,110
$
8,291
0.46
%
$
15,988
0.89
%
Construction
703,420
701,930
290
0.04
%
1,200
0.17
%
Commercial real estate
2,853,115
2,832,985
381
0.01
%
19,749
0.69
%
Commercial
969,817
929,270
1,428
0.15
%
39,119
4.03
%
Home equity and improvement
271,652
267,518
2,392
0.88
%
1,742
0.64
%
Consumer finance
184,574
176,034
4,374
2.37
%
4,166
2.26
%
Gross loans
$
6,788,967
$
6,689,847
$
17,156
0.25
%
$
81,964
1.21
%
June 30, 2024 One to four family residential real estate
$
1,805,984
$
1,781,241
$
8,960
0.50
%
$
15,783
0.87
%
Construction
698,886
698,886
-
0.00
%
-
0.00
%
Commercial real estate
2,844,792
2,832,095
8,581
0.30
%
4,116
0.14
%
Commercial
1,038,087
998,954
328
0.03
%
38,805
3.74
%
Home equity and improvement
268,699
264,563
2,478
0.92
%
1,658
0.62
%
Consumer finance
187,936
179,842
4,298
2.29
%
3,796
2.02
%
Gross loans
$
6,844,384
$
6,755,581
$
24,645
0.36
%
$
64,158
0.94
%
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
%
Loan Risk Ratings Information (dollars in thousands)
Total Balance Pass Rated Special Mention %
of Total Classified % of Total September
30, 2024 One to four family residential real estate
$
1,797,355
$
1,780,621
$
886
0.05
%
$
15,848
0.88
%
Construction
703,420
683,741
19,679
2.80
%
-
0.00
%
Commercial real estate
2,851,403
2,750,149
48,571
1.70
%
52,683
1.85
%
Commercial
967,733
867,738
55,870
5.77
%
44,125
4.56
%
Home equity and improvement
270,330
268,887
-
0.00
%
1,443
0.53
%
Consumer finance
184,466
180,317
-
0.00
%
4,149
2.25
%
PCD loans
14,260
11,859
403
2.83
%
1,998
14.01
%
Gross loans
$
6,788,967
$
6,543,312
$
125,409
1.85
%
$
120,246
1.77
%
June 30, 2024 One to four family residential real estate
$
1,796,799
$
1,781,780
$
470
0.03
%
$
14,549
0.81
%
Construction
698,886
691,386
7,500
1.07
%
-
0.00
%
Commercial real estate
2,842,924
2,747,835
48,238
1.70
%
46,851
1.65
%
Commercial
1,034,491
952,016
37,107
3.59
%
45,368
4.39
%
Home equity and improvement
267,300
265,847
-
0.00
%
1,453
0.54
%
Consumer finance
187,816
184,242
-
0.00
%
3,574
1.90
%
PCD loans
16,168
13,480
164
1.01
%
2,524
15.61
%
Gross loans
$
6,844,384
$
6,636,586
$
93,479
1.37
%
$
114,319
1.67
%
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
%
Premier Financial Corp. Mortgage and Credit
Information (dollars in thousands)
As of and for the Three
Months Ended Nine Months Ended Mortgage Banking
Summary 9/30/24 6/30/24 3/31/24 12/31/23 9/30/23
9/30/24 9/30/23 Revenue from sales and servicing of mortgage
loans: Mortgage banking gains, net
$
691
$
1,378
$
1,283
$
439
$
2,584
$
3,352
$
3,989
Mortgage loan servicing revenue (expense): Mortgage loan servicing
revenue
1,839
1,835
1,842
1,844
1,850
5,516
5,583
Amortization of mortgage servicing rights
(1,320
)
(1,313
)
(1,238
)
(1,257
)
(1,291
)
(3,871
)
(3,787
)
Mortgage servicing rights valuation adjustments
(16
)
147
463
(224
)
131
594
155
503
669
1,067
363
690
2,239
1,951
Total revenue from sale/servicing of mortgage loans
$
1,194
$
2,047
$
2,350
$
802
$
3,274
$
5,591
$
5,940
Mortgage servicing rights: Balance at beginning of period
$
18,286
$
18,921
$
19,452
$
20,174
$
20,823
$
19,452
$
21,858
Loans sold, servicing retained
846
678
707
535
642
2,231
2,103
Amortization
(1,320
)
(1,313
)
(1,238
)
(1,257
)
(1,291
)
(3,871
)
(3,787
)
Balance at end of period
17,812
18,286
18,921
19,452
20,174
17,812
20,174
Valuation allowance: Balance at beginning of period
(146
)
(293
)
(756
)
(532
)
(663
)
(756
)
(687
)
Impairment recovery (charges)
(16
)
147
463
(224
)
131
594
155
Balance at end of period
(162
)
(146
)
(293
)
(756
)
(532
)
(162
)
(532
)
Net carrying value at end of period
$
17,650
$
18,140
$
18,628
$
18,696
$
19,642
$
17,650
$
19,642
Allowance for credit losses - loans Beginning
allowance
$
77,222
$
76,679
$
76,512
$
76,513
$
75,921
$
76,512
$
72,816
Provision (benefit) for credit losses - loans
(475
)
3,173
560
2,143
245
3,258
5,599
Net recoveries (charge-offs)
(605
)
(2,630
)
(393
)
(2,144
)
347
(3,628
)
(1,902
)
Ending allowance
$
76,142
$
77,222
$
76,679
$
76,512
$
76,513
$
76,142
$
76,513
Total loans
$
6,588,728
$
6,682,138
$
693,745
$
739,387
$
696,869
Less: PPP loans
(324
)
(369
)
(417
)
(469
)
(526
)
Total loans ex PPP
$
6,588,404
$
6,681,769
$
6,693,328
$
6,738,918
$
6,696,343
Allowance for credit losses (ACL)
$
76,142
$
77,222
$
76,679
$
76,512
$
76,513
Add: Unaccreted purchase accounting marks
500
575
889
1,160
1,526
Adjusted ACL
$
76,642
$
77,797
$
77,568
$
77,672
$
78,039
ACL/Loans
1.16
%
1.16
%
1.15
%
1.14
%
1.14
%
Adjusted ACL/Loans ex PPP
1.16
%
1.16
%
1.16
%
1.15
%
1.17
%
Credit Quality Total non-performing loans (1)
$
81,964
$
64,158
$
39,031
$
35,491
$
39,463
Real estate owned (REO)
326
394
255
243
387
Total non-performing assets (2)
$
82,290
$
64,552
$
39,286
$
35,734
$
39,850
Net charge-offs (recoveries)
605
2,630
393
2,144
(347
)
Allowance for credit losses / non-performing assets
92.53
%
119.63
%
195.18
%
214.12
%
192.00
%
Allowance for credit losses / non-performing loans
92.90
%
120.36
%
196.46
%
215.58
%
193.89
%
Non-performing assets / loans plus REO
1.25
%
0.97
%
0.59
%
0.53
%
0.60
%
Non-performing assets / total assets
0.94
%
0.74
%
0.46
%
0.41
%
0.47
%
Net charge-offs (recoveries) / average loans
0.04
%
0.16
%
0.02
%
0.13
%
-0.02
%
Net charge-offs (recoveries) / average loans LTM
0.09
%
0.07
%
0.03
%
0.06
%
0.04
%
(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 Nine Months Ended (In thousands,
except per share and ratio data)
9/30/24 6/30/24 3/31/24
12/31/23 9/30/23
9/30/24 9/30/23 Total non-interest expenses
$
41,915
$
38,208
$
39,900
$
37,893
$
38,052
$
120,024
$
125,338
Less: Transaction costs (pre-tax)(1)
2,789
50
-
-
-
2,839
3,652
Core non-interest expenses
$
39,126
$
38,158
$
39,900
$
37,893
$
38,052
$
117,185
$
121,686
Average total assets
$
8,696,051
$
8,646,024
$
8,591,947
$
8,536,193
$
8,582,219
$
8,644,861
$
8,538,248
Core non-interest expenses / average assets
1.79
%
1.78
%
1.87
%
1.76
%
1.76
%
1.81
%
1.91
%
Core non-interest expenses
$
39,126
$
38,158
$
39,900
$
37,893
$
38,052
$
117,185
$
121,686
Less: Insurance agency expenses
-
-
-
-
-
-
6,425
Core non-interest expenses excluding insurance agency
$
39,126
$
38,158
$
39,900
$
37,893
$
38,052
#
$
117,185
$
115,261
Non-interest income
$
12,574
$
12,078
$
12,496
$
11,789
$
13,253
$
37,148
$
79,061
Less: Gain on sale of insurance agency (pre-tax)
-
-
-
-
-
-
36,296
Core non-interest income
$
12,574
$
12,078
$
12,496
$
11,789
$
13,253
$
37,148
$
42,765
Less: Securities gains (losses)
410
(176
)
(37
)
675
256
197
(1,091
)
Core non-interest income (ex securities gains/losses)
$
12,164
$
12,254
$
12,533
$
11,114
$
12,997
$
36,951
$
43,856
Tax-equivalent net interest income
$
50,255
$
49,297
$
49,649
$
52,593
$
54,318
$
149,201
$
164,768
Core non-interest income (ex securities gains/losses)
12,164
12,254
12,533
11,114
12,997
36,951
43,856
Total core revenues
62,419
61,551
62,182
63,707
67,315
186,152
208,624
Core non-interest expenses
$
39,126
$
38,158
$
39,900
$
37,893
$
38,052
$
117,185
$
121,686
Core efficiency ratio
62.68
%
61.99
%
64.17
%
59.48
%
56.53
%
62.95
%
58.33
%
Income (loss) before income taxes
$
21,130
$
20,193
$
22,303
$
24,686
$
30,238
$
63,626
$
114,793
Add: Provision (benefit) for credit losses
(290
)
2,902
(133
)
1,761
(773
)
2,478
3,473
Pre-tax pre-provision income
20,840
23,095
22,170
26,447
29,465
66,104
118,266
Add: Transaction costs (pre-tax)
2,789
50
-
-
-
2,839
3,652
Less: Gain on sale of insurance agency (pre-tax)
-
-
-
-
-
-
36,296
Core pre-tax pre-provision income
$
23,629
$
23,145
$
22,170
$
26,447
$
29,465
$
68,943
$
85,622
Average total assets
$
8,696,051
$
8,646,024
$
8,591,947
$
8,536,193
$
8,582,219
$
8,644,861
$
8,538,248
Core pre-tax pre-provision return on average assets
1.08
%
1.08
%
1.04
%
1.23
%
1.36
%
1.07
%
1.34
%
Net income (loss)
$
16,665
$
16,176
$
17,789
$
20,070
$
24,687
$
50,630
$
91,227
Less: Gain on sale of insurance agency (pre-tax)
-
-
-
-
-
-
36,296
Add: Transaction costs (pre-tax)
2,789
50
-
-
-
2,839
3,652
Add: Tax impact of above items
(165
)
(11
)
-
-
-
(176
)
8,483
Core net income
$
19,289
$
16,215
$
17,789
$
20,070
$
24,687
$
53,293
$
67,066
Diluted shares - Reported
35,737
35,793
35,771
35,772
35,794
35,778
35,769
Core diluted EPS
$
0.54
$
0.45
$
0.50
$
0.56
$
0.69
$
1.49
$
1.87
Average total assets
$
8,696,051
$
8,646,024
$
8,591,947
$
8,536,193
$
8,582,219
$
8,644,861
$
8,538,248
Core return on average assets
0.88
%
0.75
%
0.83
%
0.93
%
1.14
%
0.82
%
1.05
%
Average total equity
$
997,845
$
968,451
$
974,560
$
930,835
$
939,456
$
980,349
$
920,967
Core return on average equity
7.69
%
6.73
%
7.34
%
8.55
%
10.43
%
7.26
%
9.74
%
Average total tangible equity
$
692,465
$
662,148
$
667,334
$
622,592
$
630,126
$
674,049
$
594,196
Core return on average tangible equity
11.08
%
9.85
%
10.72
%
12.79
%
15.54
%
10.56
%
15.09
%
(1) Transaction costs for 2024 relate to the strategic
merger transaction. Transaction costs for 2023 relate to the
insurance agency sale.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241022713834/en/
Paul Nungester EVP and CFO 419.785.8700
PNungester@yourpremierbank.com
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