Premier Financial Corp. Announces Solid 2021 Results

By: Premier Financial Corp. via Business Wire

January 25, 2022 at 16:15 PM EST

Increases Quarterly Dividend

Increases Buyback Authorization

Fourth Quarter 2021 Highlights

Loan growth of $112 million excluding PPP (up 9% annualized) including $88 million for commercial loans (up 10% annualized) during 2021 fourth quarter
Net interest margin of 3.41%, up 3 basis points from third quarter 2021
Average deposit costs down 4 basis points to 0.16% from third quarter 2021
Asset quality improved with non-performing assets down to 0.64% of assets and classifieds down to 1.2% of loans
Allowance to loans ratio of 1.26%, or 1.27% excluding PPP loans, for 2021 fourth quarter
Service fee income of $6.4 million, up $0.6 million (10%) from 2020 fourth quarter
Increased dividend 7% to $0.30 per share

Full Year 2021 Highlights

Net income of $126.1 million compared to $63.1 million (or $99.3 million excluding merger-related expenses) for 2020
Earnings per share of $3.39 compared to $1.75 (or $2.76 excluding merger-related expenses) for 2020
Loan growth of $133 million excluding PPP (up 2.6%) including $106 million for commercial loans (up 3.1%) during 2021
Deposit growth of $234 million (up 3.9%) for 2021
Pre-tax pre-provision ROAA of 2.00% compared to 1.87% (or 2.17% excluding merger-related expenses) for 2020
ROA, ROE and ROTE of 1.68%, 12.49% and 18.99% for 2021

Premier Financial Corp. (Nasdaq: PFC) (“Premier” or the “Company”) today announced 2021 fourth quarter and full year results. Net income for the fourth quarter of 2021 was $25.3 million, or $0.69 per diluted common share, compared to $30.8 million, or $0.82 per diluted common share, for the fourth quarter of 2020. The prior year’s results include the impact of $2.2 million of acquisition-related charges for the three months ended December 31, 2020, which had an after-tax cost of $1.7 million, or $0.05 per diluted common share. Net income for the year ended December 31, 2021, was $126.1 million, or $3.39 per diluted common share, compared to $63.1 million, or $1.75 per diluted common share, for the year ended December 31, 2020. The year-over-year comparison is substantially impacted by the acquisition of United Community Financial Corp. (“UCFC”) on January 31, 2020, with the prior year’s provision expense of $44.3 million that included $25.9 million related to acquisition accounting for an after-tax cost of $20.5 million, or $0.57 per diluted common share. 2021 included a provision recovery of $7.1 million, which had an after-tax benefit of $5.6 million, or $0.15 per diluted common share, and no acquisition impact. Additionally, the prior year’s results include the impact of $19.5 million of acquisition-related charges, which had an after-tax cost of $15.8 million, or $0.44 per diluted common share. Excluding the impact of the acquisition-related provision and charges, earnings for 2020 were $99.3 million, or $2.76 per diluted common share.

“Strong loan growth continues to be the theme as we close out a successful 2021,” said Gary Small, President and CEO of Premier. “PPP adjusted growth for the fourth quarter totaled 8.7% on an annualized basis. And similar to the third quarter, each loan category grew with commercial lending leading the way at 10.3%. Premier’s core loan growth for the second half of 2021 totaled 7.0% on an annualized basis. When combined with the strong fundamentals in margin management and continued solid residential origination and fee income activity, we are entering 2022 with a great deal of momentum.”

Business client support efforts

As a part of the CARES Act, the Small Business Administration created the Paycheck Protection Program (“PPP”) to provide small businesses with loans as a direct incentive to keep their workers on the payroll. Premier Bank actively participated in PPP for clients and made 2,880 loans for a total of $443.3 million during the year ended December 31, 2020. Total gross fees for these loans equaled $14.8 million. To date, Premier Bank has recognized $14.7 million as loan interest income, including $27,000 and $8.4 million during the three and twelve months ended December 31, 2021, respectively. Additionally, a total of $435.8 million in loans have been extinguished to date, including $2.4 million and $379.3 million during the three and twelve months ended December 31, 2021, respectively.

Beginning in January 2021, Premier Bank participated in the second round of PPP lending and made 2,231 loans for a total of $193.6 million during the year ended December 31, 2021. Total gross fees for these loans were $7.8 million, and Premier Bank has recognized $3.0 million and $6.2 million in loan interest income during the three and twelve months ended December 31, 2021, respectively. Additionally, a total of $82.6 million and $142.2 million in loans have been extinguished during the three and twelve months ended December 31, 2021, respectively. Total PPP loans were $58.9 million at December 31, 2021.

Quarterly results

Strong loan growth

Gross loans receivable were $5.30 billion at December 31, 2021, compared to $5.27 billion at September 30, 2021. Gross loans receivable increased $26.6 million on a linked quarter basis despite an $85.0 million decrease in PPP loans. Excluding PPP, loans grew $111.6 million organically, or 8.7% annualized. Commercial loans excluding PPP increased $88.5 million from September 30, 2021, or 10.3% annualized.

Net interest income up compared to fourth quarter of 2020

Net interest income of $57.2 million in the fourth quarter of 2021 was up from $55.0 million in the fourth quarter of 2020. The increase over the prior year was attributable to loan growth, PPP fees, and an 18 basis point decrease in average cost of funds. Net interest margin was 3.41% for the fourth quarter of 2021, up from 3.38% in the third quarter of 2021, but down from 3.47% in the fourth quarter of 2020. Yield on interest-earning assets was 3.61% in the fourth quarter of 2021, consistent with 3.61% in the third quarter of 2021. Loan yields increased 2 basis points to 4.11% in the fourth quarter of 2021 from 4.09% in the third quarter of 2021. The improvement from third quarter to fourth quarter was primarily due to $112 million of non-PPP loan growth (9% annualized). Total cost of funds decreased 3 basis points in the fourth quarter of 2021 to 0.21% from the third quarter of 2021, while the total cost of interest-bearing liabilities decreased 4 basis points to 0.28%. The 2021 fourth quarter results include the impact of acquisition marks and related accretion for the UCFC acquisition. Interest income includes $1.3 million of accretion and interest expense includes $0.3 million of accretion, which combined added 9 basis points of net interest margin. The fourth quarter results also include the impact of PPP loans. Interest income includes $2.7 million on average balances of $101.8 million, which increased net interest margin by 11 basis points. Excluding the impact of acquisition marks and PPP loans, net interest margin would be 3.21% for the fourth quarter of 2021 compared to 3.27% for the third quarter of 2021 and 3.36% for the fourth quarter of 2020.

Non-interest income down from fourth quarter of 2020

Premier’s non-interest income in the fourth quarter of 2021 was $17.8 million, compared with $18.7 million in the fourth quarter of 2020. Total mortgage banking income decreased to $3.1 million in the fourth quarter of 2021 from $5.4 million in the fourth quarter of 2020. Mortgage gains decreased to $2.8 million in the fourth quarter of 2021 from $6.1 million in the fourth quarter of 2020. Total mortgage loan production has been consistently strong compared to prior year, while gains have declined primarily due to compressed margins and less favorable marks on the in-process portfolio. Mortgage loan servicing revenue of $1.9 million in the fourth quarter of 2021 was consistent with $1.9 million in the fourth quarter of 2020. Amortization of mortgage servicing rights decreased to $1.8 million in the fourth quarter of 2021 from $2.2 million in the fourth quarter of 2020. Premier also had a positive change in the valuation adjustment for mortgage servicing assets of $151,000 in the fourth quarter of 2021 compared with a negative adjustment of $0.5 million in the fourth quarter of 2020. This item closely follows the trend in USTN-10, which was flat during the quarter at 1.52% on December 31, 2021.

For the fourth quarter of 2021, service fees and other charges were $6.4 million, up 10% from $5.8 million in the fourth quarter of 2020 primarily due to higher ATM and interchange related fees. BOLI income increased $1.3 million from the fourth quarter of 2020, primarily due to a $20 million premium purchase during the third quarter of 2021 and $1.1 million of claim gains compared with no claim gains in the fourth quarter of 2020. This was mostly offset by a combined $1.3 million decrease in wealth management, insurance commissions, and other income. Securities gains were $1.1 million in the fourth quarter of 2021 compared to a gain of $76 thousand in the fourth quarter of 2020 due to increased valuations in our trading securities portfolio.

“Residential mortgage new business volume experienced a more traditional seasonal softening in the fourth quarter combined with lower gain on sale margins in a very competitive market,” said Small. “For the year as a whole, origination volume was only slightly less than the record pace of 2020. As we look forward, we expect margins to trend back to normal levels as the industry addresses excess capacity and see upside in mortgage servicing rights valuations given the current interest rate forecast.”

Non-interest expenses up from fourth quarter of 2020

Total non-interest expense was $41.7 million in the fourth quarter of 2021, up from $41.3 million in the fourth quarter of 2020 and up from $39.1 million excluding $2.2 million of acquisition related charges. Compensation and benefits increased to $24.2 million in the fourth quarter of 2021, compared to $19.9 million in the fourth quarter of 2020. Occupancy expense was $3.9 million in the fourth quarter of 2021, down from $4.5 million in the fourth quarter of 2020. Data processing cost was $3.4 million in the fourth quarter of 2021, down from $3.8 million in the fourth quarter of 2020. Amortization of intangibles was $1.5 million in the fourth quarter of 2021, down from $1.7 million in the fourth quarter of 2020. Other non-interest expense was $7.4 million in the fourth quarter of 2021, mostly consistent with $7.3 million in the fourth quarter of 2020. Total expenses for the fourth quarter of 2021 include one-time costs related to executive office realignment and operational enhancement projects of approximately $2 million. In addition, healthcare costs were elevated due to the on-going COVID environment.

“Our expense run rate for the fourth quarter ran higher than normal as we executed a number of initiatives geared to improve performance in 2022 and beyond,” said Small. “We remain, as always, very focused on expense management even as we expand revenue efforts around the organization.”

Credit quality

Non-performing assets totaled $48.2 million, or 0.64% of assets, at December 31, 2021, a decrease from $60.1 million at September 30, 2021, and from $52.3 million at December 31, 2020. Accruing troubled debt restructured loans were $7.8 million at December 31, 2021, compared with $7.2 million at December 31, 2020. Loan delinquencies increased to $12.3 million, or 0.2% of loans, at December 31, 2021, from $11.2 million at September 30, 2021, and from $18.5 million at December 31, 2020. Classified loans totaled $69.5 million, or 1.2% of loans, as of December 31, 2021, a decrease from $90.1 million at September 30, 2021, and from $90.4 million at December 30, 2020.

The 2021 fourth quarter results include net loan charge-offs of $9.6 million and a total provision expense of $2.0 million, compared with net loan charge-offs of $0.7 million and a total provision credit of $6.8 million for the same period in 2020. The increase in charge-offs and provision expense were primarily due to a single commercial credit relationship that was placed on non-accrual in the third quarter of 2021. Total charge-offs for 2021 were $8.9 million, or 0.16% of average loans, compared to $2.4 million, or 0.05% of average loans, in 2020. The allowance for credit losses as a percentage of total loans excluding PPP was 1.27% at December 31, 2021, compared with 1.43% at September 30, 2021, and 1.61% at December 31, 2020. The continued economic improvement after the 2020 pandemic-related downturn has led to the year-over-year decrease in the allowance percentages. As of December 31, 2021, Premier Bank had no pandemic-related deferrals.

“We are pleased with this quarter’s improvement in asset quality, which includes 20% reductions in both non-performing assets and classified loans,” said Paul Nungester, CFO of Premier. “Our allowance coverage of 1.27% excluding PPP, or 1.37% including unamortized purchase accounting marks, is approaching pre-pandemic levels.”

“The fourth quarter charge-off activity reflects our commitment to address issues quickly and thoroughly with the goal of maintaining a conservative balance sheet,” said Small. “Our leading credit indicators remain very strong and I remain very confident in the quality of our overall portfolio.”

Annual results

For the year ended December 31, 2021, net income totaled $126.1 million, or $3.39 per diluted common share, compared to $63.1 million, or $1.75 per diluted common share, for the year ended December 31, 2020. Results for the 2020 period included eleven months of income and expenses from UCFC, compared to twelve months in 2021. The year-over-year comparison is also substantially impacted by the prior year’s provision expense of $44.3 million, which included $25.9 million related to acquisition accounting for an after-tax cost of $20.5 million, or $0.57 per diluted common share. The 2021 period included a provision credit of $7.1 million, which had an after-tax benefit of $5.6 million, or $0.15 per diluted common share, and no acquisition impact. Additionally, the prior year’s results include the impact of $19.5 million of acquisition-related charges, which had an after-tax cost of $15.8 million, or $0.44 per diluted common share. Excluding the impact of acquisition-related provision and charges, earnings for 2020 were $99.3 million, or $2.76 per diluted common share.

Net interest income was $227.4 million for 2021, compared with $208.0 million in 2020. Average interest-earning assets increased to $6.7 billion in 2021, compared to $5.9 billion in 2020. Net interest margin for 2021 was 3.39%, down 13 basis points from the 3.52% margin in 2020. Results include the impact of acquisition marks and related accretion for the UCFC acquisition. For 2021, interest income includes $4.6 million of accretion and interest expense includes $1.3 million of accretion, which combined added 8 basis points of net interest margin. The results for 2021 also include the impact of PPP loans. Interest income includes $14.6 million on average balances of $282.7 million, which increased net interest margin by 7 basis points. Excluding the impact of acquisition marks and PPP loans, net interest margin was 3.24% for 2021, compared to 3.42% for 2020.

Non-interest income for 2021 was $80.0 million, compared to $80.7 million in 2020. Service fees and other charges were $24.2 million for 2021, up from $21.4 million during 2020. Mortgage banking income was $21.9 million for 2021, down from $28.2 million during 2020. Insurance commissions were $15.8 million for 2021, compared with $16.8 million for 2020. Wealth management income was $6.0 million for 2021, down from $6.2 million during 2020. Securities gains were $4.2 million for 2021, compared to $1.6 million for 2020. Approximately $2.2 million of the 2021 gain was related to the sale of securities where the Company took advantage of pricing to realize gains and reinvested in a mix of new securities that will generate higher income over the next three years. The other $2.0 million is related to unrealized gains on our trading securities due to the improved market for these financial institution equities. BOLI income increased to $5.1 million in 2021, including $1.4 million of claim gains, compared to $3.3 million and no claim gains in 2020. Other non-interest income for 2021 was $2.8 million, compared to $3.0 million in 2020.

Non-interest expense was $158.0 million for 2021, compared to $165.2 million, or $145.7 million excluding acquisition-related charges, for 2020. Compensation and benefits expense was $90.6 million for 2021, compared with $77.2 million during the same period of 2020. Expenses also included net decreases of $2.9 million for occupancy, FDIC insurance premiums, financial institution taxes, data processing and amortization of intangibles and an increase of $1.8 million for other expenses. Total expenses for 2021 were impacted by the fourth quarter items discussed above.

Total assets at $7.48 billion

Total assets at December 31, 2021, were $7.48 billion, compared to $7.47 billion at September 30, 2021, and $7.21 billion at December 31, 2020. Gross loans receivable were $5.30 billion at December 31, 2021, compared to $5.27 billion at September 30, 2021, and $5.49 billion at December 31, 2020. At December 31, 2021, gross loans receivable decreased $195.1 million from a year ago due to a $328.0 million decrease in PPP loans. Excluding PPP, loans grew $132.9 million organically, or 2.6% from a year ago. Commercial loans excluding PPP increased $106.1 million from December 31, 2020, to 2021, or 3.1%. Securities at December 31, 2021, were $1.22 billion, compared to $1.26 billion at September 30, 2021, and $737.7 million at December 31, 2020. Also, at December 31, 2021, goodwill and other intangible assets totaled $342.1 million compared to $343.6 million at September 30, 2021, and $348.3 million at December 31, 2020, with the decrease attributable to intangibles amortization.

Total deposits at December 31, 2021, were $6.28 billion, compared with $6.25 billion at September 30, 2021, and $6.05 billion at December 31, 2020. At December 31, 2021, total deposits grew $234.2 million organically, or 3.9% from a year ago.

Total stockholders’ equity was $1.02 billion at December 31, 2021, compared to $1.03 billion at September 30, 2021, and $982.3 million at December 31, 2020. The increase in stockholders’ equity from the prior year was primarily due to net earnings. The Company also completed the repurchase of 595,285 common shares for $18.8 million during the fourth quarter of 2021 and 967,136 common shares for $29.6 million during the year ended December 31, 2021.

Buybacks authorization

At December 31, 2021, 1,032,864 common shares remained available for repurchase under the Company’s existing repurchase program. On January 25, 2021, the Company’s Board of Directors approved an increase in the Company’s repurchase authorization to 2,000,000 shares of common stock, or approximately 5.5% of current outstanding shares.

Dividend to be paid February 18

The Board of Directors declared a quarterly cash dividend of $0.30 per common share payable February 18, 2022, to shareholders of record at the close of business on February 11, 2022. The dividend represents an annual dividend of 4.01 percent based on the Premier common stock closing price on January 24, 2022. Premier has approximately 36,318,000 common shares outstanding.

Conference call

Premier will host a conference call at 11:00 a.m. ET on Wednesday, January 26, 2022, to discuss the earnings results and business trends. The conference call may be accessed by calling 1-844-200-6205. Internet access to the call is also available (in listen-only mode) at the following URL: https://events.q4inc.com/attendee/417140500. The 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 75 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, 2020, the Form 10-K/A filed September 28, 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 December 31, 2021, consolidated financial statements as part of its Annual Report on Form 10-K to be filed with the SEC. Accordingly, subsequent events could occur that may cause Premier to update its critical accounting estimates and to revise its financial information from that which is contained in this news release.

Non-GAAP Reporting Measures

We believe that net income, as defined by U.S. GAAP, is the most appropriate earnings measurement. However, we consider core net income and core pre-tax pre-provision income to be useful supplemental measures of our operating performance. We define core net income as net income excluding the after-tax impact of acquisition related charges. We define core pre-tax pre-provision income as pre-tax pre-provision income excluding the pre-tax impact of acquisition related charges. 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 one-time acquisition related charges. Our supplemental reporting measures and similarly entitled financial measures are widely used by investors, equity and debt analysts and ratings agencies in the valuation, comparison, rating and investment recommendations of companies. Our management uses these financial measures to facilitate internal and external comparisons to historical operating results and in making operating decisions. Additionally, they are utilized by the Board of Directors to evaluate management. The supplemental reporting measures do not represent net income or cash flow provided from operating activities as determined in accordance with U.S. GAAP and should not be considered as alternative measures of profitability or liquidity. Finally, the supplemental reporting measures, as defined by us, may not be comparable to similarly entitled items reported by other financial institutions or other companies. Please see the exhibits for reconciliations of our supplemental reporting measures.


Consolidated Balance Sheets (Unaudited)
Premier Financial Corp.

	December 31,			December 31,
(in thousands)	2021			2020

Assets
Cash and cash equivalents
Cash and amounts due from depository institutions	$	54,858		$	79,593
Interest-bearing deposits		106,708			79,673
		161,566			159,266

Available-for sale, carried at fair value		1,206,260			736,654
Trading securities, carried at fair value		14,097			1,090
Securities investments		1,220,357			737,744

Loans		5,296,168			5,491,240
Allowance for credit losses - loans		(66,468	)		(82,079	)
Loans, net		5,229,700			5,409,161
Loans held for sale		162,947			221,616
Mortgage servicing rights		19,538			13,153
Accrued interest receivable		20,767			25,434
Federal Home Loan Bank stock		11,585			16,026
Bank Owned Life Insurance		166,767			144,784
Office properties and equipment		55,602			58,665
Real estate and other assets held for sale		171			343
Goodwill		317,948			317,948
Core deposit and other intangibles		24,129			30,337
Other assets		90,325			77,257
Total Assets	$	7,481,402		$	7,211,734

Liabilities and Stockholders’ Equity
Non-interest-bearing deposits	$	1,724,772		$	1,597,262
Interest-bearing deposits		4,557,279			4,450,579
Total deposits		6,282,051			6,047,841
Advances from FHLB		-			-
Notes payable and other interest-bearing liabilities		-			-
Subordinated debentures		84,976			84,860
Advance payments by borrowers for tax and insurance		24,716			21,748
Reserve for credit losses - unfunded commitments		5,031			5,350
Other liabilities		61,132			69,659
Total Liabilities		6,457,906			6,229,458
Stockholders’ Equity
Preferred stock		-			-
Common stock, net		306			306
Additional paid-in-capital		691,132			689,390
Accumulated other comprehensive income (loss)		(3,428	)		15,004
Retained earnings		443,517			356,414
Treasury stock, at cost		(108,031	)		(78,838	)
Total Stockholders’ Equity		1,023,496			982,276
Total Liabilities and Stockholders’ Equity	$	7,481,402		$	7,211,734

Consolidated Statements of Income (Unaudited)
Premier Financial Corp.
	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
(in thousands, except per share amounts)	2021			2020			2021			2020
Interest Income:
Loans	$	55,007		$	57,694		$	223,787		$	225,084
Investment securities		5,369			2,980			19,369			11,469
Interest-bearing deposits		56			44			198			435
FHLB stock dividends		58			98			233			958
Total interest income		60,490			60,816			243,587			237,946
Interest Expense:
Deposits		2,615			5,158			13,482			26,918
FHLB advances and other		-			1			23			1,691
Subordinated debentures		673			690			2,713			1,300
Notes Payable		-			-			-			32
Total interest expense		3,288			5,849			16,218			29,941
Net interest income		57,202			54,967			227,369			208,005
Provision (benefit) for credit losses - loans		2,816			(6,158	)		(6,733	)		43,154
Provision (benefit) for credit losses - unfunded commitments		(807	)		(606	)		(319	)		1,096
Total provision (benefit) for credit losses		2,009			(6,764	)		(7,052	)		44,250
Net interest income after provision		55,193			61,731			234,421			163,755
Non-interest Income:
Service fees and other charges		6,351			5,767			24,168			21,369
Mortgage banking income		3,060			5,436			21,925			28,199
Gain on sale of non-mortgage loans		-			90			-			324
Gain (loss) on sale of available for sale securities		-			-			2,218			1,464
Gain (loss) on trading securities		1,132			76			1,954			90
Insurance commissions		3,379			3,913			15,780			16,788
Wealth management income		1,383			1,808			6,027			6,159
Income from Bank Owned Life Insurance		2,145			845			5,121			3,306
Other non-interest income		374			734			2,764			2,985
Total Non-interest Income		17,824			18,669			79,957			80,684
Non-interest Expense:
Compensation and benefits		24,247			19,882			90,646			77,213
Occupancy		3,859			4,471			15,501			16,320
FDIC insurance premium		781			983			2,896			3,355
Financial institutions tax		526			1,106			4,079			4,173
Data processing		3,447			3,752			13,550			14,886
Amortization of intangibles		1,483			1,668			6,208			6,449
Acquisition related charges		-			2,190			-			19,485
Other non-interest expense		7,390			7,261			25,075			23,289
Total Non-interest Expense		41,733			41,313			157,955			165,170
Income (loss) before income taxes		31,284			39,087			156,423			79,269
Income tax expense (benefit)		5,974			8,240			30,372			16,192
Net Income (Loss)	$	25,310		$	30,847		$	126,051		$	63,077


Earnings (loss) per common share:
Basic	$	0.69		$	0.83		$	3.39		$	1.75
Diluted	$	0.69		$	0.82		$	3.39		$	1.75

Average Shares Outstanding:
Basic		36,740			37,311			37,109			35,902
Diluted		36,848			37,350			37,200			35,949

Premier Financial Corp.
Financial Summary and Comparison (Unaudited)
	Three Months Ended								Twelve Months Ended
	December 31,								December 31,
(dollars in thousands, except per share data)	2021			2020			% change		2021			2020			% change
Summary of Operations

Tax-equivalent interest income (2)	$	60,740		$	61,067		(0.5	)	$	244,600		$	238,965		2.4
Interest expense		3,288			5,849		(43.8	)		16,218			29,942		(45.8	)
Tax-equivalent net interest income (2)		57,452			55,218		4.0			228,382			209,023		9.3
Provision (benefit) for credit losses		2,009			(6,764	)	(129.7	)		(7,052	)		44,250		(115.9	)
Core provision (benefit) for credit losses (4)		2,009			(6,764	)	(129.7	)		(7,052	)		18,301		(138.5	)
Investment securities gains (losses)		1,132			76		NM			4,172			1,554		NM
Non-interest income (excluding securities gains/losses)		16,692			18,593		(10.2	)		75,785			79,130		(4.2	)
Non-interest expense		41,733			41,313		1.0			157,955			165,170		(4.4	)
Core non-interest expense (4)		41,733			39,123		6.7			157,955			144,278		9.5
Income tax expense (benefit)		5,974			8,240		(27.5	)		30,372			16,192		87.6
Net income (loss)		25,310			30,847		(17.9	)		126,051			63,077		99.8
Core net income (4)		25,310			32,577		(22.3	)		126,051			99,348		26.9
Tax equivalent adjustment (2)		250			251		(0.4	)		1,013			1,019		(0.6	)
At Period End
Assets		7,481,402			7,211,734		3.7
Earning assets		6,797,765			6,546,299		3.8
Loans		5,296,168			5,491,240		(3.6	)
Allowance for credit losses - loans		66,468			82,079		(19.0	)
Deposits		6,282,051			6,047,841		3.9
Stockholders’ equity		1,023,496			982,276		4.2
Average Balances
Assets		7,510,397			7,089,060		5.9			7,482,578			6,592,633		13.5
Earning assets		6,736,250			6,363,306		5.9			6,732,178			5,931,965		13.5
Loans		5,356,113			5,609,116		(4.5	)		5,473,668			5,224,357		4.8
Deposits and interest-bearing liabilities		6,386,341			6,044,049		5.7			6,385,080			5,604,699		13.9
Deposits		6,301,384			5,956,550		5.8			6,287,531			5,362,436		17.3
Stockholders’ equity		1,035,717			946,223		9.5			1,009,037			898,092		12.4
Stockholders’ equity / assets		13.79	%		13.35	%	3.3			13.49	%		13.62	%	(1.0	)
Per Common Share Data
Net Income (Loss)
Basic	$	0.69		$	0.83		(16.9	)	$	3.39		$	1.75		93.7
Diluted		0.69			0.82		(15.9	)		3.39			1.75		93.7
Core diluted (4)		0.69			0.87		(20.7	)		3.39			2.76		22.8
Dividends Paid		0.28			0.22		27.3			1.05			0.88		19.3
Market Value:
High	$	34.00		$	23.49		44.7		$	35.90		$	32.05		12.0
Low		28.75			14.90		93.0			22.23			10.98		102.5
Close		30.91			23.00		34.4			30.91			23.00		34.4
Common Book Value		28.13			26.34		6.8			28.13			26.34		6.8
Tangible Common Book Value (1)		18.73			17.00		10.2			18.73			17.00		10.2
Shares outstanding, end of period (000s)		36,384			37,291		(2.4	)		36,384			37,291		(2.4	)
Performance Ratios (annualized)
Tax-equivalent net interest margin (2)		3.41	%		3.47	%	(1.7	)		3.39	%		3.52	%	(3.7	)
Return on average assets		1.34	%		1.73	%	(22.7	)		1.68	%		0.96	%	75.5
Core return on average assets (4)		1.34	%		1.83	%	(26.9	)		1.68	%		1.51	%	11.8
Return on average equity		9.70	%		12.97	%	(25.2	)		12.49	%		7.02	%	78.0
Core return on average equity (4)		9.70	%		13.70	%	(29.2	)		12.49	%		11.06	%	12.9
Return on average tangible equity		14.49	%		20.37	%	(28.8	)		18.99	%		7.00	%	171.1
Core return on average tangible equity (4)		14.49	%		21.51	%	(32.6	)		18.99	%		11.06	%	71.6
Efficiency ratio (3)		56.29	%		55.97	%	0.6			51.93	%		57.32	%	(9.4	)
Core efficiency ratio (4)		56.29	%		53.00	%	6.2			51.93	%		50.07	%	3.7
Effective tax rate		19.10	%		21.08	%	(9.4	)		19.42	%		20.43	%	(5.0	)
Dividend payout ratio (core)		40.58	%		25.29	%	60.5			30.97	%		31.88	%	(2.9	)

Note: Year-to-date 2020 results include eleven months of operations from UCFC compared to twelve for comparable period in 2021.
(1) Tangible common book value = total stockholders' equity less the sum of goodwill, core deposit and other intangibles, and preferred stock divided by shares outstanding at the end of the period.
(2) 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%.
(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.
(4) Core items exclude the impact of acquisition related provision ("CECL double-dip") and other charges. See non-GAAP reconciliations.
NM Percentage change not meaningful

Premier Financial Corp.
(dollars in thousands)
	Three Months Ended									Twelve Months Ended
	December 31,									December 31,
Mortgage Banking Summary	2021			2020						2021			2020
Revenue from sales and servicing of mortgage loans:
Mortgage banking gains, net	$	2,774		$	6,146					$	16,437		$	36,359
Mortgage loan servicing revenue (expense):
Mortgage loan servicing revenue		1,909			1,916						7,574			7,296
Amortization of mortgage servicing rights		(1,774	)		(2,174	)					(7,892	)		(7,477	)
Mortgage servicing rights valuation adjustments		151			(452	)					5,806			(7,979	)
		286			(710	)					5,488			(8,160	)
Total revenue from sale and servicing of mortgage loans	$	3,060		$	5,436					$	21,925		$	28,199

Mortgage servicing rights:
Balance at beginning of period	$	21,963		$	21,538					$	21,666		$	10,801
Loans sold, servicing retained		2,056			2,302						8,471			8,595
Mortgage servicing rights acquired		-			-						-			9,747
Amortization		(1,774	)		(2,174	)					(7,892	)		(7,477	)
Carrying value before valuation allowance at end of period		22,245			21,666						22,245			21,666
Valuation allowance:
Balance at beginning of period		(2,858	)		(8,061	)					(8,513	)		(534	)
Impairment recovery (charges)		151			(452	)					5,806			(7,979	)
Balance at end of period		(2,707	)		(8,513	)					(2,707	)		(8,513	)
Net carrying value at end of period	$	19,538		$	13,153					$	19,538		$	13,153

COVID-19 Deferrals Update	12/31/2021			9/30/2021			6/30/2021			3/31/2021			12/31/2020			9/30/2020
Commercial loan deferrals	$	-		$	-		$	-		$	32,370		$	46,038		$	434,554
% of commercial loans		0.0	%		0.0	%		0.0	%		0.8	%		1.2	%		11.4	%
% of total loans		0.0	%		0.0	%		0.0	%		0.6	%		0.8	%		7.9	%
Retail loan deferrals	$	-		$	-		$	13		$	3,414		$	7,412		$	48,187
% of retail loans		0.0	%		0.0	%		0.0	%		0.2	%		0.4	%		2.9	%
% of total loans		0.0	%		0.0	%		0.0	%		0.1	%		0.1	%		0.9	%
Total loan deferrals	$	-		$	-		$	13		$	35,784		$	53,450		$	482,741
% of total loans		0.0	%		0.0	%		0.0	%		0.7	%		1.0	%		8.8	%

Note: Year-to-date 2020 results include eleven months of operations from UCFC compared to twelve for comparable period in 2021.

Premier Financial Corp.
Yield Analysis
	Three Months Ended December 31,
	(dollars in thousands)
	2021						2020
	Average				Yield		Average				Yield
	Balance		Interest(1)		Rate(2)		Balance		Interest(1)		Rate(2)
Interest-earning assets:
Loans receivable	$	5,356,113	$	55,013	4.11	%	$	5,609,116	$	57,715	4.12	%
Securities		1,245,096		5,612	1.80	%		632,989		3,210	2.03	%	(3)
Interest Bearing Deposits		123,456		56	0.18	%		102,053		44	0.17	%
FHLB stock		11,585		59	2.04	%		19,148		98	2.05	%
Total interest-earning assets		6,736,250		60,740	3.61	%		6,363,306		61,067	3.84	%
Non-interest-earning assets		774,147						725,754
Total assets	$	7,510,397					$	7,089,060
Deposits and Interest-bearing liabilities:
Interest bearing deposits	$	4,609,064	$	2,615	0.23	%	$	4,411,557	$	5,158	0.47	%
FHLB advances and other		-		-	0.00	%		2,663		1	0.15	%
Subordinated debentures		84,957		673	3.17	%		84,836		690	3.25	%
Notes payable		-		-	-			-		-	-
Total interest-bearing liabilities		4,694,021		3,288	0.28	%		4,499,056		5,849	0.52	%
Non-interest bearing deposits		1,692,320		-	-			1,544,993		-	-
Total including non-interest-bearing deposits		6,386,341		3,288	0.21	%		6,044,049		5,849	0.39	%
Other non-interest-bearing liabilities		88,339						98,788
Total liabilities		6,474,680						6,142,837
Stockholders' equity		1,035,717						946,223
Total liabilities and stockholders' equity	$	7,510,397					$	7,089,060
Net interest income; interest rate spread			$	57,452	3.33	%			$	55,218	3.32	%
Net interest margin (4)					3.41	%					3.47	%
Average interest-earning assets to average interest bearing liabilities					144	%					141	%

	Twelve Months Ended December 31,
	2021						2020
	Average				Yield		Average				Yield
	Balance		Interest(1)		Rate(2)		Balance		Interest(1)		Rate(2)
Interest-earning assets:
Loans receivable	$	5,473,668	$	223,823	4.09	%	$	5,224,357	$	225,179	4.31	%
Securities		1,135,434		20,346	1.79	%		544,643		12,393	2.28	%	(3)
Interest Bearing Deposits		111,433		198	0.18	%		124,011		435	0.35	%
FHLB stock		11,643		233	2.00	%		38,954		958	2.46	%
Total interest-earning assets		6,732,178		244,600	3.63	%		5,931,965		238,965	4.03	%
Non-interest-earning assets		750,400						660,668
Total assets	$	7,482,578					$	6,592,633
Deposits and Interest-bearing liabilities:
Interest bearing deposits	$	4,611,525	$	13,482	0.29	%	$	4,050,958	$	26,918	0.66	%
FHLB advances and other		12,586		23	0.18	%		187,745		1,692	0.90	%
Subordinated debentures		84,911		2,713	3.20	%		48,471		1,300	2.68	%
Notes payable		52		-	0.75	%		6,047		32	0.53	%
Total interest-bearing liabilities		4,709,074		16,218	0.34	%		4,293,221		29,942	0.70	%
Non-interest bearing deposits		1,676,006		-	-			1,311,478		-	-
Total including non-interest-bearing deposits		6,385,080		16,218	0.25	%		5,604,699		29,942	0.53	%
Other non-interest-bearing liabilities		88,461						89,842
Total liabilities		6,473,541						5,694,541
Stockholders' equity		1,009,037						898,092
Total liabilities and stockholders' equity	$	7,482,578					$	6,592,633
Net interest income; interest rate spread			$	228,382	3.29	%			$	209,023	3.33	%
Net interest margin (4)					3.39	%					3.52	%
Average interest-earning assets to average interest bearing liabilities					143	%					138	%

Note: Year-to-date 2020 results include eleven months of operations from UCFC compared to twelve for comparable period in 2021.
(1) 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%.
(2) Annualized.
(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.
Selected Quarterly Information

(dollars in thousands, except per share data)	4th Qtr 2021			3rd Qtr 2021			2nd Qtr 2021			1st Qtr 2021			4th Qtr 2020
Summary of Operations
Tax-equivalent interest income (1)	$	60,740		$	61,117		$	61,134		$	61,609		$	61,067
Interest expense		3,288			3,826			4,245			4,859			5,849
Tax-equivalent net interest income (1)		57,452			57,291			56,889			56,750			55,218
Provision (benefit) for credit losses		2,009			1,820			(3,919	)		(6,963	)		(6,764	)
Core provision (benefit) for credit losses (3)		2,009			1,820			(3,919	)		(6,963	)		(6,764	)
Investment securities gains (losses)		1,132			253			661			2,126			76
Non-interest income (excluding securities gains/losses)		16,692			18,061			16,884			24,149			18,594
Non-interest expense		41,733			39,045			38,375			38,803			41,313
Core non-interest expense (3)		41,733			39,045			38,375			38,803			39,123
Income tax expense (benefit)		5,974			6,124			8,323			9,952			8,240
Net income (loss)		25,310			28,360			31,385			40,996			30,848
Core net income (3)		25,310			28,360			31,385			40,996			32,577
Tax equivalent adjustment (1)		250			256			270			237			251
At Period End
Total assets	$	7,481,402		$	7,468,318		$	7,593,720		$	7,530,462		$	7,211,734
Earning assets		6,797,765			6,774,307			6,920,008			6,852,357			6,546,299
Loans		5,296,168			5,269,566			5,348,400			5,459,683			5,491,240
Allowance for loan losses		66,468			73,217			71,367			74,754			82,079
Deposits		6,282,051			6,248,658			6,291,459			6,351,919			6,047,841
Stockholders’ equity		1,023,496			1,031,869			1,027,703			998,186			982,276
Stockholders’ equity / assets		13.68	%		13.82	%		13.53	%		13.26	%		13.62	%
Goodwill		317,948			317,948			317,948			317,948			317,948
Average Balances
Total assets	$	7,510,397		$	7,529,100		$	7,549,531		$	7,338,886		$	7,089,060
Earning assets		6,736,250			6,773,021			6,806,275			6,611,343			6,363,306
Loans		5,356,113			5,416,696			5,495,782			5,629,715			5,609,116
Deposits and interest-bearing liabilities		6,386,341			6,422,455			6,454,731			6,275,160			6,044,049
Deposits		6,301,384			6,317,229			6,339,673			6,190,292			5,956,550
Stockholders’ equity		1,035,717			1,020,206			1,006,757			972,653			946,223
Stockholders’ equity / assets		13.79	%		13.55	%		13.34	%		13.25	%		13.35	%
Per Common Share Data
Net Income (Loss):
Basic	$	0.69		$	0.76		$	0.84		$	1.10		$	0.83
Diluted		0.69			0.76			0.84			1.10			0.82
Core diluted (3)		0.69			0.76			0.84			1.10			0.87
Dividends Paid		0.28			0.27			0.26			0.24			0.22
Market Value:
High	$	34.00		$	32.72		$	33.97		$	35.90		$	23.49
Low		28.75			25.80			27.76			22.23			14.90
Close		30.91			31.84			28.41			33.26			23.00
Common Book Value		28.13			27.90			27.64			26.78			26.34
Shares outstanding, end of period (000s)		36,384			36,978			37,178			37,275			37,291
Performance Ratios (annualized)
Tax-equivalent net interest margin (1)		3.41	%		3.38	%		3.34	%		3.43	%		3.47	%
Return on average assets		1.34	%		1.49	%		1.67	%		2.27	%		1.73	%
Core return on average assets (3)		1.34	%		1.49	%		1.67	%		2.27	%		1.83	%
Return on average equity		9.70	%		11.03	%		12.50	%		17.09	%		12.97	%
Core return on average equity (3)		9.70	%		11.03	%		12.50	%		17.09	%		13.70	%
Return on average tangible equity		14.49	%		16.65	%		19.05	%		26.60	%		20.37	%
Core return on average tangible equity (3)		14.49	%		16.65	%		19.05	%		26.60	%		21.51	%
Efficiency ratio (2)		56.29	%		51.82	%		52.02	%		47.96	%		55.97	%
Core efficiency ratio (3)		56.29	%		51.82	%		52.02	%		47.96	%		53.00	%
Effective tax rate		19.10	%		17.76	%		20.96	%		19.53	%		21.08	%
Common dividend payout ratio (core)		40.58	%		35.53	%		30.95	%		21.82	%		25.29	%

(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) Efficiency ratio = Non-interest expense divided by sum of tax-equivalent net interest income plus non-interest income, excluding securities gains or losses, net.
(3) Core items exclude the impact of acquisition related provision ("CECL double-dip") and other charges. See non-GAAP reconciliations.

Premier Financial Corp.
Selected Quarterly Information

(dollars in thousands, except per share data)	4th Qtr 2021			3rd Qtr 2021			2nd Qtr 2021			1st Qtr 2021			4th Qtr 2020
Loan Portfolio Composition
One to four family residential real estate	$	1,167,466		$	1,129,877		$	1,138,433		$	1,168,559		$	1,201,051
Construction		862,815			885,586			830,822			749,190			667,649
Commercial real estate		2,450,349			2,389,759			2,405,653			2,402,067			2,383,001
Commercial		895,638			952,729			1,051,972			1,172,910			1,202,353
Consumer finance		126,417			125,163			118,526			117,539			120,729
Home equity and improvement		264,354			264,140			261,842			257,764			272,701
Total loans		5,767,039			5,747,254			5,807,248			5,868,029			5,847,484
Less:
Undisbursed loan funds		477,890			481,434			458,156			405,983			355,065
Deferred loan origination fees		(7,019	)		(3,746	)		692			2,363			1,179
Allowance for credit losses - loans		66,468			73,217			71,367			74,754			82,079
Net Loans	$	5,229,700		$	5,196,349		$	5,277,033		$	5,384,929		$	5,409,161

Allowance for credit losses - loans
Beginning allowance	$	73,217		$	71,367		$	74,754		$	82,079		$	88,917
Provision (benefit) for credit losses - loans		2,816			1,594			(3,631	)		(7,514	)		(6,158	)
Net recoveries (charge-offs)		(9,565	)		256			244			189			(680	)
Ending allowance	$	66,468		$	73,217		$	71,367		$	74,754		$	82,079

Credit Quality
Total non-performing loans (1)	$	48,014		$	59,865		$	41,296		$	49,298		$	51,682
Real estate owned (REO)		171			261			45			53			343
Total non-performing assets (2)	$	48,185		$	60,126		$	41,341		$	49,351		$	52,025
Net charge-offs (recoveries)		9,565			(256	)		(244	)		(189	)		680

Restructured loans, accruing (3)		7,768			6,503			5,939			6,068			7,173

Allowance for credit losses - loans / loans		1.26	%		1.39	%		1.33	%		1.37	%		1.49	%
Allowance for credit losses - loans / non-performing assets		137.94	%		121.77	%		172.63	%		151.47	%		157.77	%
Allowance for credit losses - loans / non-performing loans		138.43	%		122.30	%		172.82	%		151.64	%		158.82	%
Non-performing assets / loans plus REO		0.91	%		1.14	%		0.77	%		0.90	%		0.95	%
Non-performing assets / total assets		0.64	%		0.81	%		0.54	%		0.66	%		0.73	%
Net charge-offs / average loans (annualized)		0.71	%		-0.02	%		-0.02	%		-0.01	%		0.05	%
Net charge-offs / average loans LTM		0.16	%		0.00	%		0.06	%		0.05	%		0.05	%

Deposit Balances
Non-interest-bearing demand deposits	$	1,724,772		$	1,618,769		$	1,649,664		$	1,728,895		$	1,597,262
Interest-bearing demand deposits and money market		2,952,705			2,962,032			2,890,769			2,806,271			2,627,669
Savings deposits		804,451			786,929			777,862			761,899			700,480
Retail time deposits less than $250		636,477			692,224			720,317			842,624			912,006
Retail time deposits greater than $250		163,646			188,704			252,847			212,230			210,424
Total deposits	$	6,282,051		$	6,248,658		$	6,291,459		$	6,351,919		$	6,047,841

(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.

Premier Financial Corp.

Loan Delinquency Information
(dollars in thousands)	Total Balance		Current		30 to 89 days past due		% of Total		Non Accrual Loans		% of Total

December 31, 2021
One to four family residential real estate	$	1,167,466	$	1,149,333	$	6,212	0.5	%	$	11,921	1.0	%
Construction		862,815		861,326		1,489	0.2	%		-	0.0	%
Commercial real estate		2,450,349		2,435,491		15	0.0	%		14,843	0.6	%
Commercial		895,638		879,521		76	0.0	%		16,041	1.8	%
Consumer finance		126,417		122,361		2,023	1.6	%		2,033	1.6	%
Home equity and improvement		264,354		258,661		2,517	1.0	%		3,176	1.2	%
Total loans	$	5,767,039	$	5,706,693	$	12,332	0.2	%	$	48,014	0.8	%

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	%
Consumer finance		125,163		121,580		1,792	1.4	%		1,791	1.4	%
Home equity and improvement		264,140		259,175		1,848	0.7	%		3,117	1.2	%
Total loans	$	5,747,254	$	5,676,177	$	11,212	0.2	%	$	59,865	1.0	%

December 31, 2020
One to four family residential real estate	$	1,201,051	$	1,178,876	$	8,318	0.7	%	$	13,857	1.2	%
Construction		667,649		664,248		2,294	0.3	%		1,107	0.2	%
Commercial real estate		2,383,001		2,359,299		993	0.0	%		22,709	1.0	%
Commercial		1,202,353		1,192,949		9	0.0	%		9,395	0.8	%
Consumer finance		120,729		116,632		2,248	1.9	%		1,849	1.5	%
Home equity and improvement		272,701		265,023		4,612	1.7	%		3,066	1.1	%
Total loans	$	5,847,484	$	5,777,027	$	18,474	0.3	%	$	51,983	0.9	%

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

December 31, 2021
One to four family residential real estate	$	1,154,070	$	1,142,688	$	1,316	0.1	%	$	10,066	0.9	%
Construction		862,815		843,293		19,522	2.3	%		-	0.0	%
Commercial real estate		2,444,471		2,321,654		93,676	3.8	%		29,141	1.2	%
Commercial		886,472		857,905		14,815	1.7	%		13,752	1.6	%
Consumer finance		125,926		124,073		-	0.0	%		1,853	1.5	%
Home equity and improvement		260,948		258,914		-	0.0	%		2,034	0.8	%
PCD loans		32,337		19,547		101	0.3	%		12,689	39.2	%
Total loans	$	5,767,039	$	5,568,074	$	129,430	2.2	%	$	69,535	1.2	%

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	%
Consumer finance		124,525		122,956		-	0.0	%		1,569	1.3	%
Home equity and improvement		260,408		258,575		-	0.0	%		1,833	0.7	%
PCD loans		35,744		18,793		102	0.3	%		16,849	47.1	%
Total loans	$	5,747,254	$	5,498,672	$	158,491	2.8	%	$	90,091	1.6	%

December 31, 2020
One to four family residential real estate	$	1,186,262	$	1,183,104	$	796	0.1	%	$	2,362	0.2	%
Construction		667,649		647,906		19,743	3.0	%		-	0.0	%
Commercial real estate		2,359,713		2,202,167		111,213	4.7	%		46,333	2.0	%
Commercial		1,174,545		1,143,715		23,713	2.0	%		7,117	0.6	%
Consumer finance		119,841		119,736		-	0.0	%		105	0.1	%
Home equity and improvement		268,311		267,872		-	0.0	%		439	0.2	%
PCD loans		71,163		33,311		3,832	5.4	%		34,020	47.8	%
Total loans	$	5,847,484	$	5,597,811	$	159,297	2.7	%	$	90,376	1.5	%

Premier Financial Corp.
Non-GAAP Reconciliations
	Twelve months ended
(In thousands, except per share and ratio data)	12/31/21			12/31/20			4th Qtr 2021			3rd Qtr 2021			2nd Qtr 2021			1st Qtr 2021			4th Qtr 2020
Acquisition related charges (pre-tax)	$	-		$	19,485		$	-		$	-		$	-		$	-		$	2,190
Less: Tax benefit of acquisition related charges		-			3,714			-			-			-			-			460
Acquisition related charges (after-tax)	$	-		$	15,771		$	-		$	-		$	-		$	-		$	1,730

Total non-interest expenses	$	157,955		$	165,170		$	41,733		$	39,045		$	38,375		$	38,803		$	41,313
Less: Acquisition related charges (pre-tax)		-			19,485			-			-			-			-			2,190
Less: FHLB prepayment charges⁽¹⁾		-			1,407			-			-			-			-			-
Core non-interest expenses	$	157,955		$	144,278		$	41,733		$	39,045		$	38,375		$	38,803		$	39,123

Acquisition related provision (pre-tax)	$	-		$	25,949		$	-		$	-		$	-		$	-		$	-
Less: Tax benefit of acquisition related provision		-			5,449			-			-			-			-			-
Acquisition related provision (after-tax)	$	-		$	20,500		$	-		$	-		$	-		$	-		$	-

Provision (benefit) for credit losses	$	(7,052	)	$	44,250		$	2,009		$	1,820		$	(3,919	)	$	(6,963	)	$	(6,764	)
Less: Acquisition related provision (pre-tax)		-			25,949			-			-			-			-			-
Core provision (benefit) for credit losses	$	(7,052	)	$	18,301		$	2,009		$	1,820		$	(3,919	)	$	(6,963	)	$	(6,764	)

Non-interest income	$	79,957		$	80,684		$	17,824		$	18,314		$	17,545		$	26,275		$	18,669
Less: Securities gains (losses)		4,172			1,554			1,132			253			661			2,126			76
Non-interest income (excluding securities gains/losses)	$	75,785		$	79,130		$	16,692		$	18,061		$	16,884		$	24,149		$	18,593

Tax-equivalent net interest income	$	228,382		$	209,023		$	57,452		$	57,291		$	56,889		$	56,750		$	55,218
Non-interest income (excluding securities gains/losses)		75,785			79,130			16,692			18,061			16,884			24,149			18,593
Total revenues		304,167			288,153			74,144			75,352			73,773			80,899			73,811
Core non-interest expenses	$	157,955		$	144,278		$	41,733		$	39,045		$	38,375		$	38,803		$	39,123
Core efficiency ratio		51.93	%		50.07	%		56.29	%		51.82	%		52.02	%		47.96	%		53.00	%

Income (loss) before income taxes	$	156,423		$	79,269		$	31,284		$	34,484		$	39,708		$	50,948		$	39,087
Add: Provision (benefit) for credit losses		(7,052	)		44,250			2,009			1,820			(3,919	)		(6,963	)		(6,764	)
Pre-tax pre-provision income		149,371			123,519			33,293			36,304			35,789			43,985			32,323
Add: Acquisition related charges (pre-tax)		-			19,485			-			-			-			-			2,190
Core pre-tax pre-provision income	$	149,371		$	143,004		$	33,293		$	36,304		$	35,789		$	43,985		$	34,513
Average total assets	$	7,482,578		$	6,592,633		$	7,510,397		$	7,529,100		$	7,549,531		$	7,338,886		$	7,089,060
Core pre-tax pre-provision return on average assets		2.00	%		2.17	%		1.76	%		1.91	%		1.90	%		2.43	%		1.94	%

Net income (loss)	$	126,051		$	63,077		$	25,310		$	28,360		$	31,385		$	40,996		$	30,847
Add: Acquisition related provision (after-tax)		-			20,500			-			-			-			-			-
Add: Acquisition related charges (after-tax)		-			15,771			-			-			-			-			1,730
Core net income	$	126,051		$	99,348		$	25,310		$	28,360		$	31,385		$	40,996		$	32,577

Diluted shares - Reported		37,200			35,949			36,848			37,185			37,358			37,357			37,350
Add: Dilutive shares for core net income		-			-			-			-			-			-			-
Diluted shares - Core		37,200			35,949			36,848			37,185			37,358			37,357			37,350
Core diluted EPS	$	3.39		$	2.76		$	0.69		$	0.76		$	0.84		$	1.10		$	0.87

Average total assets	$	7,482,578		$	6,592,633		$	7,510,397		$	7,529,100		$	7,549,531		$	7,338,886		$	7,089,060
Core return on average assets		1.68	%		1.51	%		1.34	%		1.49	%		1.67	%		2.27	%		1.83	%

Average total equity	$	1,009,037		$	898,092		$	1,035,717		$	1,020,206		$	1,006,757		$	972,653		$	946,223
Core return on average equity		12.49	%		11.06	%		9.70	%		11.03	%		12.50	%		17.09	%		13.70	%

Average total tangible equity	$	663,850		$	898,092		$	692,864		$	675,875		$	660,785		$	624,996		$	602,495
Core return on average tangible equity		18.99	%		11.06	%		14.49	%		16.65	%		19.05	%		26.60	%		21.51	%


Note: Year-to-date results include nine months of operations from UCFC compared to eight for comparable period in 2020.
(1) Represents prepayment penalties on FHLB early extinguishments funded by gains on securities sales that are excluded from revenues for efficiency ratio calculation.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220125006006/en/

Contacts

Paul Nungester

EVP and CFO

419.785.8700

PNungester@yourpremierbank.com

Premier Financial Corp. Announces Solid 2021 Results

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