Premier Financial Corp. Announces Third Quarter 2022 Results Including Continued Strong Loan and Deposit Growth

Third Quarter 2022 Highlights

  • Loan growth of $300.9 million (up 19.9% annualized) including $151.0 million for commercial loans excluding PPP (up 15.2% annualized) and $114.2 million for residential loans including held for sale (up 28.3% annualized)
  • Customer deposits growth of $146.3 million (up 9.0% annualized) including $40.0 million of non-interest-bearing (up 9.0% annualized)
  • Net interest income (tax equivalent) of $63.5 million or $62.9 million excluding PPP and acquisition marks accretion, up 7.1% and 7.6%, respectively, from 2022 second quarter
  • Net interest margin (tax equivalent) of 3.40% or 3.36% excluding PPP and acquisition marks accretion, up four basis points each from 2022 second quarter
  • Asset quality improved with non-performing loans down 4.6% and classified loans down 7.8% from 2022 second quarter
  • Declared dividend of $0.30 per share, up 7.1% from prior year comparable period

Premier Financial Corp. (Nasdaq: PFC) (“Premier” or the “Company”) announced today 2022 third quarter results. Net income for the third quarter of 2022 was $28.2 million, or $0.79 per diluted common share, compared to $28.4 million, or $0.76 per diluted common share, for the third quarter of 2021.

“We are very pleased to post another strong quarter in terms of earnings and growth,” said Gary Small, President and CEO of Premier. “Year-to-date loan and deposit growth stand at 17% and 7%, respectively, while total revenue growth for the quarter totaled 8.9%, outstanding results by any historical comparison. As has been the case all year, robust commercial and consumer business segment performance continues to offset a difficult residential mortgage environment. With a number of economic factors currently affecting our clients’ financial decision-making, it is gratifying to see households continuing to thrive. Deposits continue to grow, credit quality figures continue to improve, and consumer spending is responsibly on the rise. A strong employment market is clearly helping all maneuver through these less certain times.”

Quarterly results

Strong loan and deposit growth

Gross loans including those held for sale increased $300.9 million (up 19.9% annualized) on a linked quarter basis. Loan growth occurred in each category including $151.0 million from commercial loans excluding PPP (up 15.2% annualized), $114.2 million from residential loans including held for sale (up 28.3% annualized) and $38.5 million from consumer/home equity loans (up 34.5% annualized). PPP loans decreased $3.4 million and were only $1.2 million as of September 30, 2022.

Customer deposits increased $146.3 million (up 9.0% annualized) on a linked quarter basis. Deposit growth occurred in each customer category, including $40.0 million from non-interest bearing deposits (up 9.0% annualized) and $106.3 million from interest-bearing deposits (up 9.0% annualized). Brokered deposits also added $69.9 million.

Net interest income and margin expansion

Net interest income of $63.5 million on a tax equivalent (“TE”) basis in the third quarter of 2022 was up 7.1% from $59.3 million in the second quarter of 2022 and up 10.9% from $57.3 million in the third quarter of 2021. TE net interest margin of 3.40% in the third quarter of 2022 increased four basis points from 3.36% in the second quarter of 2022 and two basis points from 3.38% in the third quarter of 2021. Results for all periods include the impact of PPP as well as acquisition marks and related accretion for the UCFC acquisition. Third quarter 2022 includes $376 thousand of accretion in interest income, $232 thousand of accretion in interest expense and $26 thousand of interest income on average balances of $1.9 million for PPP. Excluding the impact of acquisition marks accretion and PPP loans, TE net interest income was $62.9 million, up 7.6% from $58.5 million in the second quarter of 2022 and up 17.5% from $53.5 million in the third quarter of 2021. Additionally, TE net interest margin was 3.36% for the third quarter of 2022, up four basis points from 3.32% for the second quarter of 2022 and up nine basis points from 3.27% for the third quarter of 2021. These improved results are primarily due to the combination of loan growth excluding PPP as discussed above and higher loan yields excluding PPP and acquisition marks accretion, which were 4.24% for the third quarter of 2022 compared to 3.94% in the second quarter of 2022 and 3.98% in the third quarter of 2021. The third quarter increase of 30 basis points represents a beta of 21% compared to the change in the quarterly average effective Federal Funds rate that increased 141 basis points to 2.18% for the third quarter of 2022 as reported by the Federal Reserve Economic Data. The cost of funds in the third quarter of 2022 was 0.55%, up 31 basis points from both the second quarter of 2022 and the third quarter of 2021. The year-over-year increase is largely due to utilization of higher cost FHLB borrowings in support of loan growth in excess of deposit growth. The linked quarter increase is due to higher rates on FHLB borrowings, utilization of brokered deposits and higher average deposit costs. Excluding brokered deposits and acquisition marks accretion, average deposit costs increased 24 basis points to 0.39% for the third quarter of 2022, which represents a beta of 17% compared to the change in the quarterly average effective Federal Funds rate.

Non-interest income impacted mortgage banking and securities

Service fees in the third quarter of 2022 were $6.5 million, a 2.0% decrease from $6.7 million in the second quarter of 2022 but a 7.9% increase from $6.1 million in the third quarter of 2021, primarily due to fluctuations in consumer activity for interchange and ATM/NSF charges. However, total non-interest income in the third quarter of 2022 of $16.7 million was up 16.3% from $14.4 million in the second quarter of 2022 but down 9.1% from $18.4 million in the third quarter of 2021 due to fluctuations in mortgage banking and gains/losses on securities. Mortgage banking income increased $2.0 million on a linked quarter basis due to a $2.2 million increase in gains partially offset by a $0.2 million lower MSR valuation gain. Mortgage banking income for the third quarter decreased $2.2 million year-over-year due to a $2.0 million decrease in gains primarily from compressed margins and lower saleable mix and a $0.7 million lower MSR valuation gain offset by a $0.5 million benefit from lower MSR amortization. Securities gains were $43 thousand in the third quarter of 2022 from increased valuations on equity securities, compared to $1.2 million of losses on equity securities in the second quarter of 2022 and compared to $253 thousand of gains in the third quarter of 2021, comprised of $233 thousand from available-for-sale security sales gains and $20 thousand of gains on equity securities.

“Premier’s outstanding loan growth over the year has driven net interest income performance,” said Small. “Every effort was made to capture business earlier in the year as uncertainty loomed over the horizon for the later portion of 2022. The excellent pace of business through the end of Q3 has necessitated the use of more non-core funding. The combination of core and non-core funding has enabled the organization to manage deposit betas effectively while positioning us to grow deposits across all of our markets in a thoughtful manner. The velocity of rate hikes brought about by the Fed is both understandable and challenging. We at Premier are determined to create a deposit rate offering that will both reward existing clients for their business and continue to attract new business.”

Managing non-interest expenses and efficiency

Non-interest expenses in the third quarter of 2022 were $41.1 million, a 5.2% increase from $39.1 million in the second quarter of 2022 and the third quarter of 2021, primarily due to fluctuations in compensation and benefit expenses. Compensation and benefits were $24.5 million in the third quarter of 2022, compared to $22.3 million in the second quarter of 2022 and $23.4 million in the third quarter of 2021. The linked quarter increase was primarily due to lower deferred costs related to decreased loan production. The year-over-year increase was primarily due to costs related to higher staffing levels for our growth initiatives. All other non-interest expenses decreased a net $0.2 million on a linked quarter basis and increased a net $0.8 million on a year-over-year basis. The efficiency ratio for the third quarter 2022 of 51.26% improved from 52.23% in the second quarter of 2022 and from 51.85% in the third quarter of 2021, primarily due to higher revenues.

Credit quality

Non-performing assets totaled $33.6 million, or 0.41% of assets, at September 30, 2022, a decrease from $35.2 million at June 30, 2022, and from $60.1 million at September 30, 2021. Loan delinquencies increased to $13.2 million, or 0.2% of loans, at September 30, 2022, from $11.2 million at June 30, 2022, and September 30, 2021. Classified loans totaled $45.0 million, or 0.7% of loans, as of September 30, 2022, a decrease from $48.8 million at June 30, 2022, and from $90.1 million at September 30, 2021.

The 2022 third quarter results include net loan charge-offs of $153 thousand and a total provision expense of $4.0 million, compared with net loan recoveries of $256 thousand and a total provision benefit of $1.8 million for the same period in 2021. The current year provision is primarily due to higher non-PPP loan growth in the third quarter of 2022 compared to the third quarter of 2021. The allowance for credit losses as a percentage of total loans was 1.14% at September 30, 2022, compared with 1.14% at June 30, 2022, and 1.39% at September 30, 2021. The allowance for credit losses as a percentage of total loans excluding PPP and including unaccreted acquisition marks was 1.19% at September 30, 2022, compared with 1.21% at June 30, 2022, and 1.57% at September 30, 2021. The continued economic improvement following the 2020 pandemic-related downturn has resulted in a year-over-year decrease in the allowance percentages.

“We had another quarter of asset quality improvement with non-performing loans and classified loans declining 5% and 8% respectively,” said Paul Nungester, CFO of Premier. “Net charge-offs were only 0.01% of average loans and our allowance coverage level of non-performing loans increased to 213%.”

Year to date results

For the nine-month period ended September 30, 2022, net income totaled $76.9 million, or $2.15 per diluted common share, compared to $100.7 million, or $2.70 per diluted common share for the nine months ended September 30, 2021. The year-over-year comparison is primarily impacted by fluctuations in the provision for credit losses, which was an expense of $11.5 million or $0.25 per diluted share in 2022 compared to a benefit of $9.1 million or $0.19 per share in 2021. The current year’s provision expense is primarily due to loan growth, whereas the prior year’s provision benefit was primarily due to the improving economic environment following the COVID-19 pandemic-induced economic recession and reserve increase in 2020.

TE net interest income of $181.0 million in the first nine months of 2022 was up 5.9% from $170.9 million in the first nine months of 2021. TE net interest margin of 3.40% in the first nine months of 2022 increased by one basis point from 3.39% in the first nine months of 2021. Results for each period include the impact of PPP as well as acquisition marks and related accretion for the UCFC acquisition. The first nine months of 2022 include $1.3 million of accretion in interest income, $1.0 million of accretion in interest expense and $3.8 million of interest income on average balances of $15.8 million for PPP. Excluding the impact of acquisition marks accretion and PPP loans, TE net interest income was $175.1 million, up 13.1% from $154.8 million in the first nine months of 2021. Additionally, TE net interest margin was 3.29% for the first nine months of 2022, up six basis points from 3.23% for first nine months of 2021. These improved results are primarily due to loan growth excluding PPP partially offset by lower PPP income and accretion from acquisition marks. Cost of funds in the first nine months of 2022 was 0.33%, up six basis points from the first nine months of 2021. The year-over-year increase is primarily due to an increased utilization of higher cost FHLB borrowings in support of loan growth in excess of deposit growth.

Service fees in the first nine months of 2022 were $19.2 million, a 7.9% increase from $17.8 million in the first nine months of 2021, primarily due to increased consumer activity for interchange and ATM/NSF charges. However, total non-interest income in the first nine months of 2022 of $47.9 million was down from $61.7 million in the first nine months of 2021 due to fluctuations in mortgage banking, gains/losses on securities and other income. Mortgage banking income decreased $8.7 million from 2021 due to a $6.6 million decrease in gains primarily from compressed margins and lower saleable mix and a $4.0 million decrease from lower MSR valuation gains, partially offset by a $2.0 million benefit from lower MSR amortization. Securities losses were $1.8 million in the first nine months of 2022 from decreased valuations on equity securities compared to $3.0 million of net gains in the first nine months of 2021 comprised of $2.2 million from available-for-sale security sales gains and $0.8 million of gains on equity securities. Other income for the first nine months decreased $1.0 million from 2021, primarily due to a $1.3 million non-recurring settlement payment in the first nine months of 2021.

Non-interest expenses in the first nine months of 2022 were $121.5 million, a 4.9% increase from $115.8 million in the first nine months of 2021, primarily due to fluctuations in compensation and benefit expenses. Compensation and benefits were $72.4 million in the first nine months of 2022 compared to $66.4 million in the first nine months of 2021. The year-over-year increase was primarily due to costs related to higher staffing levels for our growth initiatives. All other non-interest expenses decreased a net $0.4 million on a year-over-year basis due to cost cutting initiatives. The efficiency ratio for the first nine months of 2022 was 52.67% compared to 50.44% in the first nine months of 2021, partly due to higher expenses but primarily due to lower non-interest income discussed above.

Total assets at $8.24 billion

Total assets at September 30, 2022, were $8.24 billion, compared to $8.01 billion at June 30, 2022, and $7.47 billion at September 30, 2021. Gross loans receivable were $6.21 billion at September 30, 2022, compared to $5.90 billion at June 30, 2022, and $5.27 billion at September 30, 2021. At September 30, 2022, gross loans receivable increased $938.1 million from a year ago, despite a $142.8 million decrease in PPP loans. Excluding PPP, loans grew $1.08 billion organically, or 21.1% from a year ago. Commercial loans excluding PPP increased by $651.7 million from September 30, 2021, to 2022, or 18.8%. Securities at September 30, 2022, were $1.08 billion, compared to $1.15 billion at June 30, 2022, and $1.26 billion at September 30, 2021. Also, at September 30, 2022, goodwill and other intangible assets totaled $337.9 million compared to $339.3 million at June 30, 2022, and $343.6 million at September 30, 2021, with the decreases attributable to intangibles amortization.

Total non-brokered deposits at September 30, 2022, were $6.66 billion, compared with $6.52 billion at June 30, 2022, and $6.25 billion at September 30, 2021. At September 30, 2022, customer deposits grew $146.3 million organically, or 9.0% annualized from the prior quarter and $414.0 million or 6.6% from September 30, 2021. Brokered deposits were $69.9 million at September 30, 2022, compared to none at June 30, 2022 and September 30, 2021.

Total stockholders’ equity was $0.86 billion at September 30, 2022, compared to $0.90 billion at June 30, 2022, and $1.03 billion at September 30, 2021. The quarterly decrease in stockholders’ equity was primarily due to a decrease in accumulated other comprehensive income (“AOCI”), which was primarily related to a $43.7 million negative valuation adjustment on the available-for-sale securities portfolio. No buybacks were completed during the quarter and at September 30, 2022, 1,200,130 common shares remained available for repurchase under the Company’s existing repurchase program.

Dividend to be paid November 18

The Board of Directors declared a quarterly cash dividend of $0.30 per common share payable November 18, 2022, to shareholders of record at the close of business on November 11, 2022. The dividend represents an annual dividend of 4.3 percent based on the Premier common stock closing price on October 24, 2022. Premier has approximately 35,563,000 common shares outstanding.

Conference call

Premier will host a conference call at 11:00 a.m. ET on Wednesday, October 26, 2022, to discuss the earnings results and business trends. The conference call may be accessed by calling 1-844-200-6205 and using access code 581026. Internet access to the call is also available (in listen-only mode) at the following URL: https://events.q4inc.com/attendee/880671221. 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 and First Insurance Group. Premier Bank, headquartered in Youngstown, Ohio, operates 74 branches and 12 loan offices in Ohio, Michigan, Indiana, Pennsylvania and West Virginia (West Virginia office operates as Home Savings Bank) and serves clients through a team of wealth professionals dedicated to each community banking branch. First Insurance Group is a full-service insurance agency with ten offices in Ohio. 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: impacts from the novel coronavirus (COVID-19) pandemic on the economy, financial markets, our customers, and our business and results of operation; changes in interest rates; disruptions in the mortgage market; risks and uncertainties inherent in general and local banking, insurance and mortgage conditions; political uncertainty; uncertainty in U.S. fiscal or monetary policy; uncertainty concerning or disruptions relating to tensions surrounding the current socioeconomic landscape; competitive factors specific to markets in which Premier operates; increasing competition for financial products from other financial institutions and nonbank financial technology companies; 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, 2021 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 September 30, 2022, 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 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 believe that this metric is a useful supplemental measure of operating performance because investors and equity analysts may use this measure 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 and purchase accounting marks accretion. 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.
 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

September 30,

(in thousands)

2022

 

2022

 

2022

 

2021

 

2021

 
Assets
Cash and cash equivalents
Cash and amounts due from depositories

$

67,124

 

$

62,080

 

$

62,083

 

$

54,858

 

$

63,480

 

Interest-bearing deposits

 

37,868

 

 

72,314

 

 

91,683

 

 

106,708

 

 

51,614

 

 

104,992

 

 

134,394

 

 

153,766

 

 

161,566

 

 

115,094

 

 
Available-for-sale, carried at fair value

 

1,063,713

 

 

1,140,466

 

 

1,219,365

 

 

1,206,260

 

 

1,250,087

 

Equity securities, carried at fair value

 

15,336

 

 

13,293

 

 

13,454

 

 

14,097

 

 

12,965

 

Securities investments

 

1,079,049

 

 

1,153,759

 

 

1,232,819

 

 

1,220,357

 

 

1,263,052

 

 
Loans (1)

 

6,207,708

 

 

5,890,823

 

 

5,388,331

 

 

5,296,168

 

 

5,269,566

 

Allowance for credit losses - loans

 

(70,626

)

 

(67,074

)

 

(67,195

)

 

(66,468

)

 

(73,217

)

Loans, net

 

6,137,082

 

 

5,823,749

 

 

5,321,136

 

 

5,229,700

 

 

5,196,349

 

Loans held for sale

 

129,142

 

 

145,092

 

 

153,498

 

 

162,947

 

 

178,490

 

Mortgage servicing rights

 

20,832

 

 

20,693

 

 

20,715

 

 

19,538

 

 

19,105

 

Accrued interest receivable

 

26,021

 

 

22,533

 

 

21,765

 

 

20,767

 

 

22,994

 

Federal Home Loan Bank stock

 

28,262

 

 

23,991

 

 

15,332

 

 

11,585

 

 

11,585

 

Bank Owned Life Insurance

 

169,728

 

 

168,746

 

 

167,763

 

 

166,767

 

 

166,866

 

Office properties and equipment

 

53,747

 

 

54,060

 

 

54,684

 

 

55,602

 

 

56,073

 

Real estate and other assets held for sale

 

416

 

 

462

 

 

253

 

 

171

 

 

261

 

Goodwill

 

317,948

 

 

317,948

 

 

317,948

 

 

317,948

 

 

317,948

 

Core deposit and other intangibles

 

19,972

 

 

21,311

 

 

22,691

 

 

24,129

 

 

25,612

 

Other assets

 

148,949

 

 

123,886

 

 

108,510

 

 

90,325

 

 

94,889

 

Total Assets

$

8,236,140

 

$

8,010,624

 

$

7,590,880

 

$

7,481,402

 

$

7,468,318

 

 
Liabilities and Stockholders’ Equity
Non-interest-bearing deposits

$

1,826,511

 

$

1,786,516

 

$

1,733,157

 

$

1,724,772

 

$

1,618,769

 

Interest-bearing deposits

 

4,836,113

 

 

4,729,828

 

 

4,584,078

 

 

4,557,279

 

 

4,629,889

 

Brokered deposits

 

69,881

 

 

-

 

 

-

 

 

-

 

 

-

 

Total deposits

 

6,732,505

 

 

6,516,344

 

 

6,317,235

 

 

6,282,051

 

 

6,248,658

 

Advances from FHLB

 

411,000

 

 

380,000

 

 

150,000

 

 

-

 

 

-

 

Notes payable and other interest-bearing liabilities

 

-

 

 

-

 

 

-

 

 

-

 

 

18,812

 

Subordinated debentures

 

85,071

 

 

85,039

 

 

85,008

 

 

84,976

 

 

84,944

 

Advance payments by borrowers

 

33,511

 

 

40,344

 

 

20,332

 

 

24,716

 

 

19,495

 

Reserve for credit losses - unfunded commitments

 

7,061

 

 

6,755

 

 

5,340

 

 

5,031

 

 

5,838

 

Other liabilities

 

102,032

 

 

80,995

 

 

69,669

 

 

61,132

 

 

58,702

 

Total Liabilities

 

7,371,180

 

 

7,109,477

 

 

6,647,584

 

 

6,457,906

 

 

6,436,449

 

Stockholders’ Equity
Preferred stock

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Common stock, net

 

306

 

 

306

 

 

306

 

 

306

 

 

306

 

Additional paid-in-capital

 

691,578

 

 

690,905

 

 

691,350

 

 

691,132

 

 

690,783

 

Accumulated other comprehensive income (loss)

 

(181,231

)

 

(126,754

)

 

(75,497

)

 

(3,428

)

 

1,609

 

Retained earnings

 

488,305

 

 

470,779

 

 

459,087

 

 

443,517

 

 

428,518

 

Treasury stock, at cost

 

(133,998

)

 

(134,089

)

 

(131,950

)

 

(108,031

)

 

(89,347

)

Total Stockholders’ Equity

 

864,960

 

 

901,147

 

 

943,296

 

 

1,023,496

 

 

1,031,869

 

Total Liabilities and Stockholders’ Equity

$

8,236,140

 

$

8,010,624

 

$

7,590,880

 

$

7,481,402

 

$

7,468,318

 

 
(1) Includes PPP loans of:

$

1,181

 

$

4,561

 

$

18,660

 

$

58,906

 

$

143,949

 

Consolidated Statements of Income (Unaudited)
Premier Financial Corp.
Three Months Ended Nine Months Ended
(in thousands, except per share amounts) 9/30/22 6/30/22 3/31/22 12/31/21 9/30/21 9/30/22 9/30/21
Interest Income:
Loans

$

65,559

 

$

56,567

 

$

55,241

 

$

55,007

 

$

55,443

 

$

177,366

 

$

168,781

 

Investment securities

 

6,814

 

 

6,197

 

 

5,479

 

 

5,369

 

 

5,325

 

 

18,489

 

 

13,999

 

Interest-bearing deposits

 

221

 

 

120

 

 

46

 

 

56

 

 

33

 

 

387

 

 

142

 

FHLB stock dividends

 

510

 

 

174

 

 

59

 

 

58

 

 

60

 

 

743

 

 

175

 

Total interest income

 

73,104

 

 

63,058

 

 

60,825

 

 

60,490

 

 

60,861

 

 

196,985

 

 

183,097

 

Interest Expense:
Deposits

 

6,855

 

 

2,671

 

 

2,222

 

 

2,615

 

 

3,144

 

 

11,749

 

 

10,867

 

FHLB advances

 

2,069

 

 

527

 

 

13

 

 

-

 

 

11

 

 

2,609

 

 

23

 

Subordinated debentures

 

868

 

 

763

 

 

696

 

 

673

 

 

671

 

 

2,326

 

 

2,040

 

Notes Payable

 

-

 

 

1

 

 

-

 

 

-

 

 

-

 

 

1

 

 

-

 

Total interest expense

 

9,792

 

 

3,962

 

 

2,931

 

 

3,288

 

 

3,826

 

 

16,685

 

 

12,930

 

Net interest income

 

63,312

 

 

59,096

 

 

57,894

 

 

57,202

 

 

57,035

 

 

180,300

 

 

170,167

 

Provision (benefit) for credit losses - loans

 

3,706

 

 

5,151

 

 

626

 

 

2,816

 

 

1,594

 

 

9,483

 

 

(9,549

)

Provision (benefit) for credit losses - unfunded commitments

 

306

 

 

1,415

 

 

309

 

 

(807

)

 

226

 

 

2,030

 

 

488

 

Total provision (benefit) for credit losses

 

4,012

 

 

6,566

 

 

935

 

 

2,009

 

 

1,820

 

 

11,513

 

 

(9,061

)

Net interest income after provision

 

59,300

 

 

52,530

 

 

56,959

 

 

55,193

 

 

55,215

 

 

168,787

 

 

179,228

 

Non-interest Income:
Service fees and other charges

 

6,545

 

 

6,676

 

 

6,000

 

 

6,351

 

 

6,067

 

 

19,221

 

 

17,817

 

Mortgage banking income

 

3,970

 

 

1,948

 

 

4,252

 

 

3,060

 

 

6,175

 

 

10,170

 

 

18,865

 

Gain (loss) on sale of available for sale securities

 

-

 

 

-

 

 

-

 

 

-

 

 

233

 

 

-

 

 

2,218

 

Gain (loss) on equity securities

 

43

 

 

(1,161

)

 

(643

)

 

1,132

 

 

20

 

 

(1,760

)

 

822

 

Insurance commissions

 

3,488

 

 

4,334

 

 

4,639

 

 

3,379

 

 

3,461

 

 

12,043

 

 

12,401

 

Wealth management income

 

1,355

 

 

1,414

 

 

1,477

 

 

1,383

 

 

1,321

 

 

4,246

 

 

4,644

 

Income from Bank Owned Life Insurance

 

983

 

 

983

 

 

996

 

 

2,145

 

 

947

 

 

2,961

 

 

2,975

 

Other non-interest income

 

320

 

 

171

 

 

142

 

 

129

 

 

146

 

 

1,051

 

 

2,005

 

Total Non-interest Income

 

16,704

 

 

14,365

 

 

16,863

 

 

17,579

 

 

18,370

 

 

47,932

 

 

61,747

 

Non-interest Expense:
Compensation and benefits

 

24,522

 

 

22,334

 

 

25,541

 

 

24,247

 

 

23,355

 

 

72,397

 

 

66,399

 

Occupancy

 

3,463

 

 

3,494

 

 

3,700

 

 

3,859

 

 

3,693

 

 

10,657

 

 

11,642

 

FDIC insurance premium

 

976

 

 

802

 

 

593

 

 

781

 

 

695

 

 

2,370

 

 

2,115

 

Financial institutions tax

 

1,050

 

 

1,074

 

 

1,191

 

 

526

 

 

1,187

 

 

3,315

 

 

3,553

 

Data processing

 

3,121

 

 

3,442

 

 

3,335

 

 

3,447

 

 

3,387

 

 

9,899

 

 

10,103

 

Amortization of intangibles

 

1,338

 

 

1,380

 

 

1,438

 

 

1,483

 

 

1,528

 

 

4,156

 

 

4,725

 

Other non-interest expense

 

6,629

 

 

6,563

 

 

5,497

 

 

7,145

 

 

5,256

 

 

18,689

 

 

17,300

 

Total Non-interest Expense

 

41,099

 

 

39,089

 

 

41,295

 

 

41,488

 

 

39,101

 

 

121,483

 

 

115,837

 

Income before income taxes

 

34,905

 

 

27,806

 

 

32,527

 

 

31,284

 

 

34,484

 

 

95,236

 

 

125,138

 

Income tax expense

 

6,710

 

 

5,446

 

 

6,170

 

 

5,974

 

 

6,124

 

 

18,324

 

 

24,397

 

Net Income

$

28,195

 

$

22,360

 

$

26,357

 

$

25,310

 

$

28,360

 

$

76,912

 

$

100,741

 

 
 
Earnings per common share:
Basic

$

0.79

 

$

0.63

 

$

0.73

 

$

0.69

 

$

0.76

 

$

2.15

 

$

2.70

 

Diluted

$

0.79

 

$

0.63

 

$

0.73

 

$

0.69

 

$

0.76

 

$

2.15

 

$

2.70

 

 
Average Shares Outstanding:
Basic

 

35,582

 

 

35,560

 

 

35,978

 

 

36,740

 

 

37,100

 

 

35,709

 

 

37,226

 

Diluted

 

35,704

 

 

35,682

 

 

36,090

 

 

36,848

 

 

37,185

 

 

35,818

 

 

37,311

 

Premier Financial Corp.
Selected Quarterly Information
 
(dollars in thousands,

except per share data)

3Q22

 

2Q22

 

1Q22

 

4Q21

 

3Q21

 

YTD 2022

 

YTD 2021

Summary of Operations
Tax-equivalent interest income (1)

$

73,301

 

$

63,283

 

$

61,054

 

$

60,740

 

$

61,117

 

$

197,637

 

$

183,860

 

Interest expense

 

9,792

 

 

3,962

 

 

2,931

 

 

3,288

 

 

3,826

 

 

16,685

 

 

12,930

 

Tax-equivalent net interest income (1)

 

63,509

 

 

59,321

 

 

58,123

 

 

57,452

 

 

57,291

 

 

180,952

 

 

170,930

 

Provision expense (benefit) for credit losses

 

4,012

 

 

6,566

 

 

935

 

 

2,009

 

 

1,820

 

 

11,513

 

 

(9,061

)

Investment securities gains (losses)

 

43

 

 

(1,161

)

 

(643

)

 

1,132

 

 

253

 

 

(1,760

)

 

3,040

 

Non-interest income (ex securities gains/losses)

 

16,661

 

 

15,526

 

 

17,506

 

 

16,447

 

 

18,117

 

 

49,692

 

 

58,707

 

Non-interest expense

 

41,099

 

 

39,089

 

 

41,295

 

 

41,488

 

 

39,101

 

 

121,483

 

 

115,837

 

Income tax expense

 

6,710

 

 

5,446

 

 

6,170

 

 

5,974

 

 

6,124

 

 

18,324

 

 

24,397

 

Net income

 

28,195

 

 

22,360

 

 

26,357

 

 

25,310

 

 

28,360

 

 

76,912

 

 

100,741

 

Tax equivalent adjustment (1)

 

197

 

 

225

 

 

229

 

 

250

 

 

256

 

 

652

 

 

763

 

At Period End
Total assets

$

8,236,140

 

$

8,010,624

 

$

7,590,880

 

$

7,481,402

 

$

7,468,318

 

Goodwill and intangibles

 

337,920

 

 

339,259

 

 

340,639

 

 

342,077

 

 

343,560

 

Tangible assets (2)

 

7,898,220

 

 

7,671,365

 

 

7,250,241

 

 

7,139,325

 

 

7,124,758

 

Earning assets

 

7,411,403

 

 

7,218,905

 

 

6,881,663

 

 

6,797,765

 

 

6,774,307

 

Loans

 

6,207,708

 

 

5,890,823

 

 

5,388,331

 

 

5,296,168

 

 

5,269,566

 

Allowance for loan losses

 

70,626

 

 

67,074

 

 

67,195

 

 

66,468

 

 

73,217

 

Deposits

 

6,732,505

 

 

6,516,344

 

 

6,317,235

 

 

6,282,051

 

 

6,248,658

 

Stockholders’ equity

 

864,960

 

 

901,147

 

 

943,296

 

 

1,023,496

 

 

1,031,869

 

Stockholders’ equity / assets

 

10.50

%

 

11.25

%

 

12.43

%

 

13.68

%

 

13.82

%

Tangible equity (2)

 

527,040

 

 

561,888

 

 

602,657

 

 

681,419

 

 

688,309

 

Tangible equity / tangible assets

 

6.67

%

 

7.32

%

 

8.31

%

 

9.54

%

 

9.66

%

Average Balances
Total assets

$

8,161,389

 

$

7,742,550

 

$

7,541,414

 

$

7,510,397

 

$

7,529,100

 

$

7,807,013

 

$

7,473,203

 

Earning assets

 

7,477,795

 

 

7,051,661

 

 

6,754,862

 

 

6,736,250

 

 

6,773,021

 

 

7,097,421

 

 

6,730,807

 

Loans

 

6,120,324

 

 

5,667,853

 

 

5,382,825

 

 

5,356,113

 

 

5,416,696

 

 

5,726,369

 

 

5,513,285

 

Deposits and interest-bearing liabilities

 

7,116,910

 

 

6,706,250

 

 

6,415,483

 

 

6,386,341

 

 

6,422,455

 

 

6,748,783

 

 

6,384,654

 

Deposits

 

6,654,328

 

 

6,385,857

 

 

6,314,217

 

 

6,301,384

 

 

6,317,229

 

 

6,452,713

 

 

6,282,862

 

Stockholders’ equity

 

912,224

 

 

921,847

 

 

1,033,816

 

 

1,035,717

 

 

1,020,206

 

 

945,141

 

 

1,000,047

 

Goodwill and intangibles

 

338,583

 

 

339,932

 

 

341,353

 

 

342,853

 

 

344,331

 

 

339,946

 

 

345,975

 

Tangible equity (2)

 

573,641

 

 

581,915

 

 

692,463

 

 

692,864

 

 

675,875

 

 

605,195

 

 

654,072

 

Per Common Share Data
Net Income (Loss):
Basic

$

0.79

 

$

0.63

 

$

0.73

 

$

0.69

 

$

0.76

 

$

2.15

 

$

2.70

 

Diluted

 

0.79

 

 

0.63

 

 

0.73

 

 

0.69

 

 

0.76

 

 

2.15

 

 

2.70

 

Dividends Paid

 

0.30

 

 

0.30

 

 

0.30

 

 

0.28

 

 

0.27

 

 

0.90

 

 

0.77

 

Market Value:
High

$

29.36

 

$

30.13

 

$

32.52

 

$

34.00

 

$

32.72

 

$

32.52

 

$

35.90

 

Low

 

24.67

 

 

25.31

 

 

28.58

 

 

28.75

 

 

25.80

 

 

24.67

 

 

22.23

 

Close

 

25.70

 

 

25.35

 

 

30.33

 

 

30.91

 

 

31.84

 

 

25.70

 

 

31.84

 

Common Book Value

 

24.32

 

 

25.35

 

 

26.48

 

 

28.13

 

 

27.90

 

Tangible Common Book Value (2)

 

14.82

 

 

15.80

 

 

16.92

 

 

18.73

 

 

18.61

 

Shares outstanding, end of period (000s)

 

35,563

 

 

35,555

 

 

35,621

 

 

36,384

 

 

36,978

 

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

 

3.40

%

 

3.36

%

 

3.44

%

 

3.41

%

 

3.38

%

 

3.40

%

 

3.39

%

Return on average assets

 

1.37

%

 

1.16

%

 

1.42

%

 

1.34

%

 

1.49

%

 

1.32

%

 

1.80

%

Return on average equity

 

12.26

%

 

9.73

%

 

10.34

%

 

9.70

%

 

11.03

%

 

10.88

%

 

13.47

%

Return on average tangible equity

 

19.50

%

 

15.41

%

 

15.44

%

 

14.49

%

 

16.65

%

 

16.99

%

 

20.59

%

Efficiency ratio (3)

 

51.26

%

 

52.23

%

 

54.60

%

 

56.14

%

 

51.85

%

 

52.67

%

 

50.44

%

Effective tax rate

 

19.22

%

 

19.59

%

 

18.97

%

 

19.10

%

 

17.76

%

 

19.24

%

 

19.50

%

Common dividend payout ratio

 

37.97

%

 

47.62

%

 

41.10

%

 

40.58

%

 

35.53

%

 

41.86

%

 

28.52

%

 
(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) 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.

(3) 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
9/30/22 6/30/22 3/31/22 12/31/21 9/30/21 9/30/22 9/30/21
Average Balances
Interest-earning assets:
Loans receivable (1)

$

6,120,324

 

$

5,667,853

 

$

5,382,825

 

$

5,356,113

 

$

5,416,696

 

$

5,726,369

 

$

5,513,285

 

Securities

 

1,261,527

 

 

1,288,073

 

 

1,250,321

 

 

1,245,096

 

 

1,273,148

 

 

1,266,681

 

 

1,098,478

 

Interest Bearing Deposits

 

68,530

 

 

76,401

 

 

109,757

 

 

123,456

 

 

71,276

 

 

84,745

 

 

107,381

 

FHLB stock

 

27,414

 

 

19,334

 

 

11,959

 

 

11,585

 

 

11,901

 

 

19,626

 

 

11,663

 

Total interest-earning assets

 

7,477,795

 

 

7,051,661

 

 

6,754,862

 

 

6,736,250

 

 

6,773,021

 

 

7,097,421

 

 

6,730,807

 

Non-interest-earning assets

 

683,594

 

 

690,889

 

 

786,552

 

 

774,147

 

 

756,079

 

 

709,592

 

 

742,396

 

Total assets

$

8,161,389

 

$

7,742,550

 

$

7,541,414

 

$

7,510,397

 

$

7,529,100

 

$

7,807,013

 

$

7,473,203

 

Deposits and Interest-bearing Liabilities:
Interest bearing deposits

$

4,846,419

 

$

4,614,223

 

$

4,600,801

 

$

4,609,064

 

$

4,649,462

 

$

4,688,047

 

$

4,612,354

 

FHLB advances and other

 

377,533

 

 

234,945

 

 

16,278

 

 

-

 

 

20,098

 

 

210,908

 

 

16,828

 

Subordinated debentures

 

85,049

 

 

85,020

 

 

84,988

 

 

84,957

 

 

84,924

 

 

85,019

 

 

84,895

 

Notes payable

 

-

 

 

428

 

 

-

 

 

-

 

 

204

 

 

143

 

 

69

 

Total interest-bearing liabilities

 

5,309,001

 

 

4,934,616

 

 

4,702,067

 

 

4,694,021

 

 

4,754,688

 

 

4,984,117

 

 

4,714,146

 

Non-interest bearing deposits

 

1,807,909

 

 

1,771,634

 

 

1,713,416

 

 

1,692,320

 

 

1,667,767

 

 

1,764,666

 

 

1,670,508

 

Total including non-interest-bearing deposits

 

7,116,910

 

 

6,706,250

 

 

6,415,483

 

 

6,386,341

 

 

6,422,455

 

 

6,748,783

 

 

6,384,654

 

Other non-interest-bearing liabilities

 

132,255

 

 

114,453

 

 

92,115

 

 

88,339

 

 

86,439

 

 

113,089

 

 

88,502

 

Total liabilities

 

7,249,165

 

 

6,820,703

 

 

6,507,598

 

 

6,474,680

 

 

6,508,894

 

 

6,861,872

 

 

6,473,156

 

Stockholders' equity

 

912,224

 

 

921,847

 

 

1,033,816

 

 

1,035,717

 

 

1,020,206

 

 

945,141

 

 

1,000,047

 

Total liabilities and stockholders' equity

$

8,161,389

 

$

7,742,550

 

$

7,541,414

 

$

7,510,397

 

$

7,529,100

 

$

7,807,013

 

$

7,473,203

 

Average interest-earning assets to interest-bearing liabilities

 

141

%

 

143

%

 

144

%

 

144

%

 

142

%

 

142

%

 

143

%

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

$

65,564

 

$

56,573

 

$

55,248

 

$

55,013

 

$

55,444

 

$

177,385

 

$

168,810

 

Securities (2)

 

7,006

 

 

6,416

 

 

5,701

 

 

5,612

 

 

5,580

 

 

19,122

 

 

14,733

 

Interest Bearing Deposits

 

221

 

 

120

 

 

46

 

 

56

 

 

33

 

 

387

 

 

142

 

FHLB stock

 

510

 

 

174

 

 

59

 

 

59

 

 

60

 

 

743

 

 

175

 

Total interest-earning assets

 

73,301

 

 

63,283

 

 

61,054

 

 

60,740

 

 

61,117

 

 

197,637

 

 

183,860

 

Deposits and Interest-bearing Liabilities:
Interest bearing deposits

$

6,855

 

$

2,671

 

$

2,222

 

$

2,615

 

$

3,144

 

$

11,749

 

$

10,867

 

FHLB advances and other

 

2,069

 

 

527

 

 

13

 

 

-

 

 

11

 

 

2,609

 

 

23

 

Subordinated debentures

 

868

 

 

763

 

 

696

 

 

673

 

 

671

 

 

2,326

 

 

2,040

 

Notes payable

 

-

 

 

1

 

 

-

 

 

-

 

 

-

 

 

1

 

 

-

 

Total interest-bearing liabilities

 

9,792

 

 

3,962

 

 

2,931

 

 

3,288

 

 

3,826

 

 

16,685

 

 

12,930

 

Non-interest bearing deposits

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Total including non-interest-bearing deposits

 

9,792

 

 

3,962

 

 

2,931

 

 

3,288

 

 

3,826

 

 

16,685

 

 

12,930

 

Net interest income

$

63,509

 

$

59,321

 

$

58,123

 

$

57,452

 

$

57,291

 

$

180,952

 

$

170,930

 

Less: PPP income

 

(26

)

 

(160

)

 

(3,641

)

 

(2,686

)

 

(2,887

)

 

(3,827

)

 

(11,858

)

Less: Acquisition marks accretion

 

(608

)

 

(706

)

 

(737

)

 

(1,595

)

 

(879

)

 

(2,051

)

 

(4,274

)

Core net interest income

$

62,875

 

$

58,455

 

$

53,745

 

$

53,171

 

$

53,525

 

$

175,074

 

$

154,798

 

 
Average Rates (3)
Interest-earning assets:
Loans receivable

 

4.29

%

 

3.99

%

 

4.11

%

 

4.11

%

 

4.09

%

 

4.13

%

 

4.08

%

Securities (4)

 

2.22

%

 

1.99

%

 

1.82

%

 

1.80

%

 

1.75

%

 

2.01

%

 

1.79

%

Interest Bearing Deposits

 

1.29

%

 

0.63

%

 

0.17

%

 

0.18

%

 

0.19

%

 

0.61

%

 

0.18

%

FHLB stock

 

7.44

%

 

3.60

%

 

1.97

%

 

2.04

%

 

2.02

%

 

5.05

%

 

2.00

%

Total interest-earning assets

 

3.92

%

 

3.59

%

 

3.62

%

 

3.61

%

 

3.61

%

 

3.71

%

 

3.64

%

Deposits and Interest-bearing Liabilities:
Interest bearing deposits

 

0.57

%

 

0.23

%

 

0.19

%

 

0.23

%

 

0.27

%

 

0.33

%

 

0.31

%

FHLB advances and other

 

2.19

%

 

0.90

%

 

0.32

%

 

0.00

%

 

0.22

%

 

1.65

%

 

0.18

%

Subordinated debentures

 

4.08

%

 

3.59

%

 

3.28

%

 

3.17

%

 

3.16

%

 

3.65

%

 

3.20

%

Notes payable

 

0.00

%

 

0.93

%

 

-

 

 

-

 

 

0.75

%

 

0.93

%

 

0.75

%

Total interest-bearing liabilities

 

0.74

%

 

0.32

%

 

0.25

%

 

0.28

%

 

0.32

%

 

0.45

%

 

0.37

%

Non-interest bearing deposits

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Total including non-interest-bearing deposits

 

0.55

%

 

0.24

%

 

0.18

%

 

0.21

%

 

0.24

%

 

0.33

%

 

0.27

%

Net interest spread

 

3.18

%

 

3.27

%

 

3.37

%

 

3.33

%

 

3.29

%

 

3.26

%

 

3.27

%

Net interest margin (5)

 

3.40

%

 

3.36

%

 

3.44

%

 

3.41

%

 

3.38

%

 

3.40

%

 

3.39

%

Core net interest margin (5)

 

3.36

%

 

3.32

%

 

3.20

%

 

3.21

%

 

3.27

%

 

3.29

%

 

3.23

%

 
(1) Includes average PPP loans of:

$

1,889

 

$

12,966

 

$

32,853

 

$

101,804

 

$

219,366

 

$

15,790

 

$

343,653

 

(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) Annualized.
(4) Securities yield = annualized interest income divided by the average balance of securities, excluding average unrealized gains/losses.
(5) Net interest margin is tax equivalent net interest income divided by average interest-earning assets. Core net interest margin represents net interest margin excluding PPP and acquisition marks accretion.
Premier Financial Corp.
Loans and Deposits Composition
(dollars in thousands)

 

 

 

 

 

 

 

 

 

3Q22

 

2Q22

 

1Q22

 

4Q21

 

3Q21

Loan Portfolio Composition
Residential real estate

$

1,478,360

$

1,382,202

$

1,222,057

$

1,167,466

$

1,129,877

Residential real estate construction

 

119,204

 

85,256

 

97,746

 

121,621

 

140,798

Total residential loans

 

1,597,564

 

1,467,458

 

1,319,803

 

1,289,087

 

1,270,675

 
Commercial real estate

 

2,674,078

 

2,655,730

 

2,495,469

 

2,450,349

 

2,389,759

Commercial construction

 

398,044

 

319,590

 

260,421

 

263,304

 

263,354

Commercial excluding PPP

 

1,041,423

 

987,242

 

891,893

 

836,732

 

808,780

Core commercial loans (1)

 

4,113,545

 

3,962,562

 

3,647,783

 

3,550,385

 

3,461,893

 
Consumer direct/indirect

 

212,790

 

180,539

 

132,294

 

126,417

 

125,163

Home equity and improvement lines

 

272,367

 

266,144

 

261,176

 

264,354

 

264,140

Total consumer loans

 

485,157

 

446,683

 

393,470

 

390,771

 

389,303

 
Deferred loan origination fees

 

10,261

 

9,559

 

8,615

 

7,019

 

3,746

Core loans (1)

 

6,206,527

 

5,886,262

 

5,369,671

 

5,237,262

 

5,125,617

PPP loans

 

1,181

 

4,561

 

18,660

 

58,906

 

143,949

Total loans

$

6,207,708

$

5,890,823

$

5,388,331

$

5,296,168

$

5,269,566

 
Loans held for sale

$

129,142

$

145,092

$

153,498

$

162,947

$

178,490

Core residential loans (1)

 

1,726,706

 

1,612,550

 

1,473,301

 

1,452,034

 

1,449,165

Total loans including loans held for sale but excluding PPP

 

6,335,669

 

6,031,354

 

5,523,169

 

5,400,209

 

5,304,107

 
Undisbursed construction loan funds - residential

$

231,598

$

239,748

$

210,702

$

204,772

$

209,054

Undisbursed construction loan funds - commercial

 

493,199

 

449,101

 

314,843

 

273,118

 

272,380

Undisbursed construction loan funds - total

 

724,797

 

688,849

 

525,545

 

477,890

 

481,434

Total construction loans including undisbursed funds

$

1,242,045

$

1,093,695

$

883,712

$

862,815

$

885,586

Gross loans (2)

$

6,922,244

$

6,570,113

$

5,905,261

$

5,767,039

$

5,747,254

 
Deposit Portfolio Composition
Non-interest-bearing demand deposits

$

1,826,511

$

1,786,516

$

1,733,157

$

1,724,772

$

1,618,769

Interest-bearing demand deposits and money market

 

3,197,455

 

3,106,306

 

3,029,260

 

2,952,705

 

2,962,032

Savings deposits

 

820,650

 

832,859

 

830,143

 

804,451

 

786,929

Retail time deposits less than $250

 

550,275

 

532,836

 

586,967

 

636,477

 

692,224

Retail time deposits greater than $250

 

267,733

 

257,827

 

137,708

 

163,646

 

188,704

Brokered deposits

 

69,881

 

-

 

-

 

-

 

-

Total deposits

$

6,732,505

$

6,516,344

$

6,317,235

$

6,282,051

$

6,248,658

 
(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, 2022
One to four family residential real estate

$

1,478,360

$

1,464,319

$

6,232

0.4

%

$

7,809

0.5

%

Construction

 

1,242,045

 

1,242,045

 

-

0.0

%

 

-

0.0

%

Commercial real estate

 

2,674,078

 

2,660,068

 

116

0.0

%

 

13,894

0.5

%

Commercial

 

1,042,604

 

1,034,898

 

338

0.0

%

 

7,368

0.7

%

Home equity and improvement

 

272,367

 

267,077

 

3,144

1.2

%

 

2,146

0.8

%

Consumer finance

 

212,790

 

207,453

 

3,417

1.6

%

 

1,920

0.9

%

Gross loans

$

6,922,244

$

6,875,860

$

13,247

0.2

%

$

33,137

0.5

%

 
June 30, 2022
One to four family residential real estate

$

1,382,202

$

1,367,037

$

7,176

0.5

%

$

7,989

0.6

%

Construction

 

1,093,695

 

1,093,695

 

-

0.0

%

 

-

0.0

%

Commercial real estate

 

2,655,730

 

2,641,216

 

1

0.0

%

 

14,513

0.5

%

Commercial

 

991,803

 

984,065

 

-

0.0

%

 

7,738

0.8

%

Home equity and improvement

 

266,144

 

261,576

 

1,943

0.7

%

 

2,625

1.0

%

Consumer finance

 

180,539

 

176,608

 

2,061

1.1

%

 

1,870

1.0

%

Gross loans

$

6,570,113

$

6,524,197

$

11,181

0.2

%

$

34,735

0.5

%

 
September 30, 2021
One to four family residential real estate

$

1,129,877

$

1,115,076

$

5,663

0.5

%

$

9,138

0.8

%

Construction

 

885,586

 

884,265

 

1,321

0.1

%

 

-

0.0

%

Commercial real estate

 

2,389,759

 

2,367,760

 

146

0.0

%

 

21,853

0.9

%

Commercial

 

952,729

 

928,321

 

442

0.0

%

 

23,966

2.5

%

Home equity and improvement

 

264,140

 

259,175

 

1,848

0.7

%

 

3,117

1.2

%

Consumer finance

 

125,163

 

121,580

 

1,792

1.4

%

 

1,791

1.4

%

Gross loans

$

5,747,254

$

5,676,177

$

11,212

0.2

%

$

59,865

1.0

%

 
Loan Risk Ratings Information
(dollars in thousands) Total Balance Pass Rated Special Mention % of

Total
Classified % of

Total
 
September 30, 2022
One to four family residential real estate

$

1,466,470

$

1,458,082

$

1,267

0.1

%

$

7,121

0.5

%

Construction

 

1,242,045

 

1,240,745

 

1,300

0.1

%

 

-

0.0

%

Commercial real estate

 

2,672,451

 

2,584,984

 

65,233

2.4

%

 

22,234

0.8

%

Commercial

 

1,036,441

 

1,009,384

 

20,106

1.9

%

 

6,951

0.7

%

Home equity and improvement

 

269,786

 

268,384

 

-

0.0

%

 

1,402

0.5

%

Consumer finance

 

212,493

 

210,602

 

-

0.0

%

 

1,891

0.9

%

PCD loans

 

22,558

 

17,044

 

93

0.4

%

 

5,421

24.0

%

Gross loans

$

6,922,244

$

6,789,225

$

87,999

1.3

%

$

45,020

0.7

%

 
June 30, 2022
One to four family residential real estate

$

1,370,167

$

1,361,875

$

1,244

0.1

%

$

7,048

0.5

%

Construction

 

1,093,695

 

1,093,695

 

-

0.0

%

 

-

0.0

%

Commercial real estate

 

2,654,003

 

2,551,971

 

77,224

2.9

%

 

24,808

0.9

%

Commercial

 

984,972

 

956,229

 

21,428

2.2

%

 

7,315

0.7

%

Home equity and improvement

 

263,330

 

261,530

 

-

0.0

%

 

1,800

0.7

%

Consumer finance

 

180,183

 

178,346

 

-

0.0

%

 

1,837

1.0

%

PCD loans

 

23,763

 

17,632

 

95

0.4

%

 

6,036

25.4

%

Gross loans

$

6,570,113

$

6,421,278

$

99,991

1.5

%

$

48,844

0.7

%

 
September 30, 2021
One to four family residential real estate

$

1,117,055

$

1,107,787

$

1,315

0.1

%

$

7,953

0.7

%

Construction

 

885,586

 

866,054

 

19,532

2.2

%

 

-

0.0

%

Commercial real estate

 

2,379,734

 

2,220,881

 

117,068

4.9

%

 

41,785

1.8

%

Commercial

 

944,202

 

903,626

 

20,474

2.2

%

 

20,102

2.1

%

Home equity and improvement

 

260,408

 

258,575

 

-

0.0

%

 

1,833

0.7

%

Consumer finance

 

124,525

 

122,956

 

-

0.0

%

 

1,569

1.3

%

PCD loans

 

35,744

 

18,793

 

102

0.3

%

 

16,849

47.1

%

Gross loans

$

5,747,254

$

5,498,672

$

158,491

2.8

%

$

90,091

1.6

%

Premier Financial Corp.
Selected Quarterly Information
(dollars in thousands)
As of and for the three months ended Nine months ended
Mortgage Banking Summary 9/30/22 6/30/22 3/31/22 12/31/21 9/30/21 9/30/22 9/30/21
Revenue from sales and servicing of mortgage loans:
Mortgage banking gains, net

$

3,363

 

$

1,166

 

$

2,543

 

$

2,774

 

$

5,353

 

$

7,072

 

$

13,663

 

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

 

1,861

 

 

1,862

 

 

1,879

 

 

1,909

 

 

1,861

 

 

5,602

 

 

5,665

 

Amortization of mortgage servicing rights

 

(1,350

)

 

(1,375

)

 

(1,403

)

 

(1,774

)

 

(1,822

)

 

(4,128

)

 

(6,119

)

Mortgage servicing rights valuation adjustments

 

96

 

 

295

 

 

1,233

 

 

151

 

 

783

 

 

1,624

 

 

5,656

 

 

607

 

 

782

 

 

1,709

 

 

286

 

 

822

 

 

3,098

 

 

5,202

 

Total revenue from sale/servicing of mortgage loans

$

3,970

 

$

1,948

 

$

4,252

 

$

3,060

 

$

6,175

 

$

10,170

 

$

18,865

 

 
Mortgage servicing rights:
Balance at beginning of period

$

21,872

 

$

22,189

 

$

22,244

 

$

21,963

 

$

21,682

 

$

22,244

 

$

21,666

 

Loans sold, servicing retained

 

1,393

 

 

1,058

 

 

1,348

 

 

2,056

 

 

2,103

 

 

3,799

 

 

6,415

 

Amortization

 

(1,350

)

 

(1,375

)

 

(1,403

)

 

(1,774

)

 

(1,822

)

 

(4,128

)

 

(6,119

)

Balance at end of period

 

21,915

 

 

21,872

 

 

22,189

 

 

22,245

 

 

21,963

 

 

21,915

 

 

21,962

 

Valuation allowance:
Balance at beginning of period

 

(1,179

)

 

(1,474

)

 

(2,707

)

 

(2,858

)

 

(3,641

)

 

(2,707

)

 

(8,513

)

Impairment recovery (charges)

 

96

 

 

295

 

 

1,233

 

 

151

 

 

783

 

 

1,624

 

 

5,656

 

Balance at end of period

 

(1,083

)

 

(1,179

)

 

(1,474

)

 

(2,707

)

 

(2,858

)

 

(1,083

)

 

(2,857

)

Net carrying value at end of period

$

20,832

 

$

20,693

 

$

20,715

 

$

19,538

 

$

19,105

 

$

20,832

 

$

19,105

 

 
Allowance Summary
Beginning allowance

$

67,074

 

$

67,195

 

$

66,468

 

$

73,217

 

$

71,367

 

$

66,468

 

$

82,079

 

Provision (benefit) for credit losses - loans

 

3,706

 

 

5,151

 

 

626

 

 

2,816

 

 

1,594

 

 

9,483

 

 

(9,549

)

Net recoveries (charge-offs)

 

(154

)

 

(5,272

)

 

101

 

 

(9,565

)

 

256

 

 

(5,325

)

 

687

 

Ending allowance

$

70,626

 

$

67,074

 

$

67,195

 

$

66,468

 

$

73,217

 

$

70,626

 

$

73,217

 

 
Total loans

$

6,207,708

 

$

5,890,823

 

$

5,388,331

 

$

5,296,168

 

$

5,269,566

 

Less: PPP loans

 

(1,181

)

 

(4,561

)

 

(18,660

)

 

(58,906

)

 

(143,949

)

Total loans ex PPP

$

6,206,527

 

$

5,886,262

 

$

5,369,671

 

$

5,237,262

 

$

5,125,617

 

 
Allowance for credit losses (ACL)

$

70,626

 

$

67,074

 

$

67,195

 

$

66,468

 

$

73,217

 

Add: Unaccreted purchase accounting marks

 

3,291

 

 

3,924

 

 

4,652

 

 

5,418

 

 

7,109

 

Adjusted ACL

$

73,917

 

$

70,998

 

$

71,847

 

$

71,886

 

$

80,326

 

ACL/Loans

 

1.14

%

 

1.14

%

 

1.25

%

 

1.26

%

 

1.39

%

Adjusted ACL/Loans ex PPP

 

1.19

%

 

1.21

%

 

1.34

%

 

1.37

%

 

1.57

%

 
Credit Quality
Total non-performing loans (1)

$

33,137

 

$

34,735

 

$

47,298

 

$

48,014

 

$

59,865

 

Real estate owned (REO)

 

416

 

 

462

 

 

253

 

 

171

 

 

261

 

Total non-performing assets (2)

$

33,553

 

$

35,197

 

$

47,551

 

$

48,185

 

$

60,126

 

Net charge-offs (recoveries)

 

154

 

 

5,272

 

 

(101

)

 

9,565

 

 

(256

)

 
Restructured loans, accruing (3)

 

6,909

 

 

5,899

 

 

6,287

 

 

7,768

 

 

6,503

 

 
Allowance for credit losses - loans / loans

 

1.14

%

 

1.14

%

 

1.25

%

 

1.26

%

 

1.39

%

Allowance for credit losses - loans / non-performing assets

 

210.49

%

 

190.57

%

 

141.31

%

 

137.94

%

 

121.77

%

Allowance for credit losses - loans / non-performing loans

 

213.13

%

 

193.10

%

 

142.07

%

 

138.43

%

 

122.30

%

Non-performing assets / loans plus REO

 

0.54

%

 

0.60

%

 

0.88

%

 

0.91

%

 

1.14

%

Non-performing assets / total assets

 

0.41

%

 

0.44

%

 

0.63

%

 

0.64

%

 

0.81

%

Net charge-offs / average loans (annualized)

 

0.01

%

 

0.37

%

 

-0.01

%

 

0.71

%

 

-0.02

%

Net charge-offs / average loans LTM

 

0.26

%

 

0.27

%

 

0.17

%

 

0.16

%

 

0.00

%

 
(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.
(3) Accruing restructured loans are loans with known credit problems that are not contractually past due and therefore are not included in non-performing loans.

 

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