Premier Financial Corp. (Nasdaq: PFC) (“Premier” or the
“Company”) announced today 2024 second quarter results and the
signing of a definitive merger agreement with Wesbanco, Inc.
(Nasdaq: WSBC).
Strategic Merger
On July 26, 2024, PFC and WSBC announced the signing of a
definitive merger agreement under which PFC will merge into WSBC in
a stock-for-stock transaction. Under the terms of the merger
agreement, shareholders of PFC will receive 0.80 shares of WSBC
common stock for each share of PFC common stock. Premier Bank, a
wholly owned subsidiary of PFC, will merge into Wesbanco Bank,
Inc., a wholly owned subsidiary of WSBC. Based upon a closing price
for WSBC as of July 25, 2024 of $34.28, the transaction is valued
at approximately $987 million, or $27.42 per common share of PFC.
Upon closing, PFC shareholders will own approximately 30% of the
combined company. The transaction is expected to close in the first
quarter of 2025, subject to the approval of shareholders of both
PFC and WSBC and regulatory approvals, as well as satisfaction or
waiver of other customary closing conditions. Additional
information can be found in the press release announcing the merger
dated July 26, 2024.
Quarterly results
Net income for the second quarter of 2024 was $16.2 million, or
$0.45 per diluted common share, compared to income of $48.4
million, or $1.35 per diluted common share, for the second quarter
of 2023. Second quarter 2023 results included the impact of the
disposition of the Company’s insurance agency, First Insurance
Group (“FIG”), for a net gain on sale after transaction costs of
$32.6 million pre-tax or $0.67 per diluted common share after-tax.
Excluding the impact of this transaction, second quarter 2023
earnings were $24.2 million or $0.68 per diluted common share.
Net interest income and margin
Net interest income of $49.3 million on a tax equivalent (“TE”)
basis in the second quarter of 2024 was down 0.7% from $49.6
million in the first quarter of 2024 and down 8.8% from $54.1
million in the second quarter of 2023. The TE net interest margin
of 2.46% in the second quarter of 2024 decreased four basis points
from 2.50% in the first quarter of 2024 and 26 basis points from
2.72% in the second quarter of 2023. These results are primarily
impacted by changes in deposit balances/costs and loan
balances/yields.
Total deposits decreased $4.8 million during the second quarter
of 2024 from the first quarter of 2024 due to an $18.7 million
decrease in customer deposits offset partly by an increase of $13.9
million in brokered deposits. Total average interest-bearing
deposit costs increased nine basis points to 3.10% during the
second quarter of 2024 from the first quarter of 2024. This
increase was primarily due to new customer acquisitions and the
migration of customers from non-interest-bearing deposits into
interest-bearing deposits, including higher cost time deposits, as
customers continue to seek better yields. Total average customer
deposit costs including non-interest bearing and excluding brokered
deposits and acquisition marks were 2.33% during the month of June,
representing a cumulative beta of 41% compared to the change in the
monthly average effective Federal Funds rate that increased 525
basis points to 5.33% since December 2021, as reported by the
Federal Reserve Economic Data. Beginning in March 2024 and through
June 2024, management implemented rate reductions in certain
higher-cost deposit tiers. The benefit of those actions began to be
realized in June 2024 as the 2.33% average cost noted above was a
decline of two basis points from the prior month.
Total loans including held-for-sale decreased $10.5 million,
during the second quarter of 2024, primarily due to a $14.7 million
decrease in residential loans including held-for-sale. Total
average loan yields increased seven basis points to 5.26% for the
second quarter of 2024. This increase was primarily due to
origination of higher yielding loans and payoffs of lower yielding
loans. Total average loan yields excluding PPP, balance sheet
hedges and acquisition marks were 5.36% during the month of June
(up seven basis points from 5.29% in March), representing a
cumulative beta of 31% compared to the change in the monthly
average effective Federal Funds rate for the same period.
Non-interest income
Total non-interest income in the second quarter of 2024 of $12.1
million was down 3.3% from $12.5 million in the first quarter of
2024, and down 6.5% from $12.9 million in the second quarter of
2023, excluding insurance commissions and the gain on sale of
insurance agency, primarily due to fluctuations in mortgage banking
income. Mortgage banking income decreased $0.3 million on a linked
quarter basis and $0.9 million from second quarter 2023, primarily
as a result of fluctuations in gain on sale margins and MSR
valuation adjustments.
Security losses were $176 thousand in the second quarter of
2024, compared to losses of $37 thousand in the first quarter of
2024 and gains of $64 thousand in the second quarter of 2023,
primarily due to valuation changes on equity securities. Service
fees in the second quarter of 2024 were $7.0 million, an 8.4%
increase from $6.5 million in the first quarter of 2024, but a 2.5%
decrease from $7.2 million in the second quarter of 2023. This
change was primarily due to fluctuations in loan fees, including
commercial customer swap activity. Due to the insurance agency sale
on June 30, 2023, there were no insurance commissions in the second
quarter of 2024, compared to $4.1 million in the second quarter of
2023. Wealth management income of $1.8 million in the second
quarter of 2024 was up slightly from $1.7 million in the first
quarter of 2024 and 19.8% higher than $1.5 million in the second
quarter of 2023. BOLI income of $1.2 million in the second quarter
of 2024 included no claim gains, compared to $1.7 million in the
first quarter of 2024, including $0.5 million of claim gains, and
$1.0 million in the second quarter of 2023 with no claim gains.
Non-interest expenses
Non-interest expenses excluding transaction costs in the second
quarter of 2024 were $38.2 million, a 4.4% decrease from $39.9
million in the first quarter of 2024, and a 6.6% decrease from
$40.8 million in the second quarter of 2023, excluding transaction
costs for the insurance agency sale. Compensation and benefits were
$21.4 million in the second quarter of 2024, compared to $23.4
million in the first quarter of 2024 and $24.2 million in the
second quarter of 2023. The linked quarter decrease was primarily
due to lower staffing and items that occur annually in the first
quarter. The year-over-year decrease was primarily due to the
insurance agency sale, partially offset by costs related to higher
staffing levels and higher base compensation, including 2024 annual
merit adjustments. Data processing costs were $5.1 million in the
second quarter of 2024, compared to $4.7 million in the first
quarter of 2024 and $3.6 million in the second quarter of 2023,
with the year-over-year increase primarily due to the new digital
platform launched in October 2023. All other non-interest expenses
decreased a net $0.1 million on a linked quarter basis due to cost
saving initiatives and decreased a net $1.3 million from second
quarter 2023 due to the insurance agency sale and cost saving
initiatives. The core efficiency ratio for the second quarter of
2024 was 62.0% compared to 64.2% in the first quarter of 2024 and
57.5% in the second quarter of 2023. The ratio of core non-interest
expenses to average assets improved to 1.78% for the second quarter
of 2024 from 1.87% for the first quarter of 2024 and from 1.91% for
the second quarter of 2023.
Credit quality
Non-performing assets totaled $64.6 million, or 0.74% of assets,
at June 30, 2024, an increase from $39.3 million at March 31, 2024,
and from $37.6 million at June 30, 2023. The increase was primarily
due to one large commercial credit that was previously reported in
classified loans. Loan delinquencies increased to $24.6 million, or
0.36% of loans, at June 30, 2024, from $18.3 million at March 31,
2024, and from $19.0 million at June 30, 2023. Criticized loans
totaled $207.8 million, or 3.04% of loans, as of June 30, 2024, an
increase from $191.5 million at March 31, 2024, and from $121.2
million at June 30, 2023.
The 2024 second quarter results include net charge-offs of $2.6
million and a total provision expense of $2.9 million, compared
with net loan recoveries of $0.2 million and a total provision
expense of $0.5 million for the same period in 2023. The change in
provision is primarily due to higher charge-offs. The allowance for
credit losses as a percentage of total loans was 1.16% at June 30,
2024, compared with 1.15% at March 31, 2024, and 1.13% at June 30,
2023.
Year to date results
Net income for the first half of 2024 was $34.0 million, or
$0.95 per diluted common share, compared to income of $66.5
million, or $1.86 per diluted common share for the first half of
2023. First half 2023 results included the impact of the insurance
agency sale for a net gain on sale after transaction costs of $32.6
million pre-tax or $0.67 per diluted common share after-tax.
Excluding the impact of this item, first half 2023 earnings were
income of $42.4 million or $1.19 per diluted common share.
Net interest income of $98.9 million on a TE basis for the first
half of 2024 was down 10.4% from $110.4 million in the first half
of 2023. The TE net interest margin of 2.48% in the first half of
2024 decreased 33 basis points from 2.81% in the first half of
2023. These results are positively impacted by the combination of
loan growth and higher loan yields, which were 5.23% for the first
half of 2024 compared to 4.76% in the first half of 2023. These
results are negatively impacted by increase in the cost of funds in
the first half of 2024 of 2.56%, up 84 basis points from the first
half of 2023. The year-over-year increase is largely due to
increasing costs of customer deposits and higher utilization of
FHLB borrowings.
Total non-interest income in the first half of 2024 of $24.6
million was up 19.0% from $20.7 million in the first half of 2023,
excluding insurance commissions and the gain on the sale of the
insurance agency. Mortgage banking income increased $1.7 million
year-over-year primarily as a result of a $1.3 million increase in
gains due to better margins.
Security losses were $0.2 million in the first half of 2024
compared to $1.3 million in the first half of 2023, primarily due
to valuations on equity securities. The company also sold $21
million of AFS securities for a $27 thousand gain with average
yields less than FHLB borrowing rates during the first half of
2023. Service fees in the first half of 2024 were $13.5 million, a
1.1% decrease from $13.6 million in the first half of 2023,
primarily due to fluctuations in loan fees including commercial
customer swap activity and consumer activity for interchange and
ATM/NSF charges. Due to the insurance agency sale on June 30, 2023,
there were no insurance commissions in the first half of 2024,
compared to $8.9 million in the first half of 2023. Wealth
management income of $3.6 million in the first half of 2024 was up
17.7% from $3.0 million in the first half of 2023. BOLI income of
$2.9 million in the first half of 2024 included $0.5 million of
claim gains, compared to $2.4 million in the first half of 2023,
including $0.4 million of claim gains.
Non-interest expenses excluding transaction costs in the first
half of 2024 were $78.1 million, a 6.7% decrease from $83.6 million
in the first half of 2023. Compensation and benefits were $44.7
million in the first half of 2024, compared to $49.8 million in the
first half of 2023. The year-over-year decrease was primarily due
to the insurance agency sale, partially offset by costs related to
higher staffing levels and higher base compensation, including 2024
annual merit adjustments. FDIC premiums decreased $0.8 million on a
year-over-year basis primarily due to lower rates. Data processing
costs were $9.7 million in the first half of 2024, compared to $7.5
million in the first half of 2023, with the year-over-year increase
primarily due to the new digital platform launched in October 2023.
All other non-interest expenses decreased a net $1.9 million on a
year-over-year basis due to the insurance agency sale and cost
saving initiatives. The core efficiency ratio for the first half of
2024 of 63.1% increased from 59.2% in the first half of 2023 due to
lower revenues partly offset by cost saving initiatives that began
during the second quarter of 2023. The ratio of core non-interest
expenses to average assets improved to 1.82% for the first half of
2024 from 1.98% for the first half of 2023.
The 2024 first half results include net loan charge-offs of $3.0
million and a total provision expense of $2.8 million, compared
with net loan charge-offs of $2.2 million and a total provision
expense of $4.2 million for the same period in 2023. The
year-over-year change in provision expense is primarily due to a
decrease in loans during the first half of 2024 compared to an
increase in loans during the first half of 2023.
Total assets at $8.78 billion
Total assets at June 30, 2024, were $8.78 billion, compared to
$8.63 billion at March 31, 2024, and $8.62 billion at June 30,
2023. Loans receivable were $6.68 billion at June 30, 2024,
compared to $6.69 billion at March 31, 2024, and $6.71 billion at
June 30, 2023. Securities at June 30, 2024, were $1.09 billion,
compared to $1.02 billion at March 31, 2024, and $0.97 billion at
June 30, 2023. All securities are either AFS or trading and are
reflected at fair value on the balance sheet. Also, at June 30,
2024, goodwill and other intangible assets totaled $305.9 million
compared to $306.8 million at March 31, 2024, and $309.9 million at
June 30, 2023, with the decreases due to amortization of
intangibles.
Total non-brokered deposits at June 30, 2024, were $6.80
billion, compared with $6.81 billion at March 31, 2024, and $6.58
billion at June 30, 2023. Brokered deposits were $382.7 million at
June 30, 2024, compared to $368.8 million at March 31, 2024 and
$413.2 million at June 30, 2023. FHLB borrowings increased to
$393.0 million at June 30, 2024, from $253.0 million at March 31,
2024, but decreased from $455.0 million at June 30, 2023. On June
28, 2024, $50 million of deposits were received late in the day and
used to paydown FHLB borrowings on July 1, 2024.
Total stockholders’ equity was $979.1 million at June 30, 2024,
compared to $974.3 million at March 31, 2024, and $937.0 million at
June 30, 2023, with the increases primarily due to net earnings in
excess of dividends. Excluding goodwill and intangibles, tangible
equity was $673.3 million at June 30, 2024, an increase from $667.5
million at March 31, 2024, and from $627.1 million at June 30,
2023.
Regulatory ratios all improved during the second quarter of
2024, including CET1 of 11.91%, Tier 1 of 12.41% and Total Capital
of 14.25%. All of these ratios also exceed well-capitalized
guidelines pro forma for including accumulated other comprehensive
income (“AOCI”), including CET1 of 9.61%, Tier 1 of 10.10% and
Total Capital of 11.95%.
Dividend to be paid August 16
The Board of Directors declared a quarterly cash dividend of
$0.31 per common share payable August 16, 2024, to shareholders of
record at the close of business on August 9, 2024. The dividend
represents an annual dividend yield of 4.9% percent based on the
Premier common stock closing price on July 25, 2024. Premier has
approximately 35,839,000 common shares outstanding.
Conference call canceled
Premier will no longer host its previously planned conference
call at 10:00 a.m. ET on Wednesday, July 31, 2024.
About Premier Financial Corp.
Premier Financial Corp. (Nasdaq: PFC), headquartered in
Defiance, Ohio, is the holding company for Premier Bank. Premier
Bank, headquartered in Youngstown, Ohio, operates 73 branches and 9
loan offices in Ohio, Michigan, Indiana and Pennsylvania and also
serves clients through a team of wealth professionals dedicated to
each community banking branch. For more information, visit the
company’s website at PremierFinCorp.com.
Financial Statements and Highlights Follow-
Safe Harbor Statement
This document may contain certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, and the Private Securities Litigation Reform Act of 1995.
These statements may include, but are not limited to, statements
regarding projections, forecasts, goals and plans of Premier
Financial Corp. (“Premier”) and its management, and include
statements related to the expected timing, completion and benefits
of the proposed merger with WesBanco, Inc. (“WesBanco”) (the
‘Merger”), future movements of interest rates, loan or deposit
production levels, future credit quality ratios, future strength in
the market area, and growth projections. These statements do not
describe historical or current facts and may be identified by words
such as “intend,” “intent,” “believe,” “expect,” “estimate,”
“target,” “plan,” “anticipate,” or similar words or phrases, or
future or conditional verbs such as “will,” “would,” “should,”
“could,” “might,” “may,” “can,” or similar verbs. There can be no
assurances that the forward-looking statements included in this
document will prove to be accurate. In light of the significant
uncertainties in the forward-looking statements, the inclusion of
such information should not be regarded as a representation by
Premier or any other persons, that our objectives and plans will be
achieved, including with respect to the Merger. Forward-looking
statements involve numerous risks and uncertainties, any one or
more of which could affect Premier’s business and financial results
in future periods and could cause actual results to differ
materially from plans and projections. Factors that could cause or
contribute to such differences include, but are not limited to, (1)
the businesses of Premier and WesBanco may not be integrated
successfully or such integration may take longer to accomplish than
expected, (2) the expected cost savings and any revenue synergies
from the proposed Merger may not be fully realized within the
expected timeframes, (3) disruption from the proposed Merger may
make it more difficult to maintain relationships with customers,
associates, or suppliers, (4) the required governmental approvals
of the proposed Merger may not be obtained on the expected terms
and schedule, (5) Premier’s shareholders and/or WesBanco’s
shareholders may not approve the proposed Merger and the merger
agreement, and WesBanco’s shareholders may not approve the issuance
of shares of WesBanco common stock in the proposed Merger. Further
information regarding additional factors that could affect the
forward-looking statements can be found in the cautionary language
included under the headings “Cautionary Note Regarding
Forward-Looking Statements” (in the case of Premier),
“Forward-Looking Statements” (in the case of WesBanco), and “Risk
Factors” in Premier’s and WesBanco’s Annual Reports on Form 10-K
for the year ended December 31, 2023, and other documents
subsequently filed by Premier and WesBanco with the SEC. These
risks and uncertainties include other risks and uncertainties
detailed from time to time in our Securities and Exchange
Commission (SEC) filings, including our Annual Report on Form 10-K
for the year ended December 31, 2023 and any further amendments
thereto. All forward-looking statements made in this document are
based on information presently available to the management of
Premier and speak only as of the date on which they are made. We
assume no obligation to update any forward-looking statements,
whether as a result of new information, future developments or
otherwise, except as may be required by law. As required by U.S.
GAAP, Premier will evaluate the impact of subsequent events through
the issuance date of its June 30, 2024, consolidated financial
statements as part of its Quarterly Report on Form 10-Q to be filed
with the SEC, including with respect to the Merger. Accordingly,
subsequent events could occur that may cause Premier to update its
critical accounting estimates and to revise its financial
information from that which is contained in this news release.
Non-GAAP Reporting Measures
We believe that net income, as defined by U.S. GAAP, is the most
appropriate earnings measurement. However, we consider core net
interest income, core net income and core pre-tax pre-provision
income to be useful supplemental measures of our operating
performance. We define core net interest income as net interest
income on a tax-equivalent basis excluding income from PPP loans
and purchase accounting marks accretion. We define core net income
as net income excluding the after-tax impacts of the insurance
agency gain on sale and transaction costs. We define core pre-tax
pre-provision income as pre-tax pre-provision income excluding the
pre-tax impact of the insurance agency gain on sale and transaction
costs. We believe that these metrics are useful supplemental
measures of operating performance because investors and equity
analysts may use these measures to compare the operating
performance of the Company between periods or as compared to other
financial institutions or other companies on a consistent basis
without having to account for income from PPP loans, purchase
accounting marks accretion, or the insurance agency sale. Our
supplemental reporting measures and similarly entitled financial
measures are widely used by investors, equity and debt analysts and
ratings agencies in the valuation, comparison, rating and
investment recommendations of companies. Our management uses these
financial measures to facilitate internal and external comparisons
to historical operating results and in making operating decisions.
Additionally, they are utilized by the Board of Directors to
evaluate management. The supplemental reporting measures do not
represent net income or cash flow provided from operating
activities as determined in accordance with U.S. GAAP and should
not be considered as alternative measures of profitability or
liquidity. Finally, the supplemental reporting measures, as defined
by us, may not be comparable to similarly entitled items reported
by other financial institutions or other companies. Please see the
exhibits for reconciliations of our non-GAAP reporting
measures.
Subsequent Event
As announced and further described in a separate press release
jointly issued by Premier and WesBanco, Inc. today, Premier and
WesBanco have entered into a merger agreement.
Consolidated Balance Sheets (Unaudited) Premier
Financial Corp. June 30, March 31, December 31,
September 30, June 30, (in thousands)
2024
2024
2023
2023
2023
Assets Cash and cash equivalents Cash and amounts due
from depositories
$
72,053
$
57,956
$
81,973
$
70,642
$
71,096
Interest-bearing deposits
83,598
31,725
32,783
46,855
50,631
155,651
89,681
114,756
117,497
121,727
Available-for-sale, carried at fair value
1,081,120
1,014,433
946,708
911,184
961,123
Equity securities, carried at fair value
5,559
5,736
5,773
5,860
6,458
Securities investments
1,086,679
1,020,169
952,481
917,044
967,581
Loans (1)
6,682,138
6,693,745
6,739,387
6,696,869
6,708,568
Allowance for credit losses - loans
(77,222
)
(76,679
)
(76,512
)
(76,513
)
(75,921
)
Loans, net
6,604,916
6,617,066
6,662,875
6,620,356
6,632,647
Loans held for sale
138,604
137,523
145,641
135,218
128,079
Mortgage servicing rights
18,140
18,628
18,696
19,642
20,160
Accrued interest receivable
35,334
34,795
33,446
34,648
30,056
Federal Home Loan Bank stock
32,189
26,075
21,760
25,049
39,887
Bank Owned Life Insurance
183,409
182,203
181,544
172,906
171,856
Office properties and equipment
55,073
57,231
56,878
55,679
55,736
Real estate and other assets held for sale
394
255
243
387
561
Goodwill
295,602
295,602
295,602
295,602
295,602
Core deposit and other intangibles
10,250
11,196
12,186
13,220
14,298
Other assets
162,452
140,630
129,841
155,628
138,021
Total Assets
$
8,778,693
$
8,631,054
$
8,625,949
$
8,562,876
$
8,616,211
Liabilities and Stockholders’ Equity
Non-interest-bearing deposits
$
1,438,764
$
1,467,161
$
1,591,979
$
1,545,595
$
1,573,837
Interest-bearing deposits
5,357,112
5,347,444
5,209,123
5,127,863
5,007,358
Brokered deposits
382,678
368,782
341,944
392,181
413,237
Total deposits
7,178,554
7,183,387
7,143,046
7,065,639
6,994,432
Advances from FHLB
393,000
253,000
280,000
339,000
455,000
Subordinated debentures
85,292
85,261
85,229
85,197
85,166
Advance payments by borrowers
13,391
16,861
23,277
22,781
26,045
Reserve for credit losses - unfunded commitments
3,343
3,614
4,307
4,690
5,708
Other liabilities
125,984
114,590
114,463
126,002
112,889
Total Liabilities
7,799,564
7,656,713
7,650,322
7,643,309
7,679,240
Stockholders’ Equity Preferred stock
-
-
-
-
-
Common stock, net
306
306
306
306
306
Additional paid-in-capital
689,743
689,468
690,585
690,038
689,579
Accumulated other comprehensive income (loss)
(163,038
)
(162,081
)
(153,719
)
(200,282
)
(168,721
)
Retained earnings
581,715
576,648
569,937
560,945
547,336
Treasury stock, at cost
(129,597
)
(130,000
)
(131,482
)
(131,440
)
(131,529
)
Total Stockholders’ Equity
979,129
974,341
975,627
919,567
936,971
Total Liabilities and Stockholders’ Equity
$
8,778,693
$
8,631,054
$
8,625,949
$
8,562,876
$
8,616,211
(1) Includes PPP loans of:
$
369
$
417
$
469
$
526
$
577
Consolidated Statements of Income (Unaudited)
Premier Financial Corp. Three Months Ended Six
Months Ended (in thousands, except per share amounts)
6/30/24 3/31/24 12/31/23 9/30/23 6/30/23
6/30/24
6/30/23 Interest Income: Loans
$
88,560
$
87,597
$
87,924
$
86,612
$
81,616
$
176,156
$
157,674
Investment securities
8,666
7,602
7,013
6,943
6,997
16,268
14,257
Interest-bearing deposits
638
609
740
652
641
1,247
1,085
FHLB stock dividends
606
534
621
690
905
1,141
1,299
Total interest income
98,470
96,342
96,298
94,897
90,159
194,812
174,315
Interest Expense: Deposits
43,927
42,567
39,250
34,874
26,825
86,494
48,283
FHLB advances
4,159
3,039
3,328
4,597
8,217
7,198
13,554
Subordinated debentures
1,159
1,162
1,169
1,162
1,125
2,321
2,199
Notes Payable
-
-
-
-
-
-
-
Total interest expense
49,245
46,768
43,747
40,633
36,167
96,013
64,036
Net interest income
49,225
49,574
52,551
54,264
53,992
98,799
110,279
Provision (benefit) for credit losses - loans
3,173
560
2,143
245
1,410
3,733
5,354
Provision (benefit) for credit losses - unfunded commitments
(271
)
(693
)
(382
)
(1,018
)
(870
)
(964
)
(1,108
)
Total provision (benefit) for credit losses
2,902
(133
)
1,761
(773
)
540
2,769
4,246
Net interest income after provision
46,323
49,707
50,790
55,037
53,452
96,030
106,033
Non-interest Income: Service fees and other charges
7,008
6,467
6,761
6,947
7,190
13,475
13,618
Mortgage banking income
2,047
2,350
802
3,274
2,940
4,396
2,666
Gain (loss) on sale of non-mortgage loans
-
67
94
-
71
67
71
Gain (loss) on sale of available for sale securities
-
-
10
-
(7
)
-
27
Gain (loss) on equity securities
(176
)
(37
)
665
256
71
(213
)
(1,374
)
Gain on sale of insurance agency
-
-
-
-
36,296
-
36,296
Insurance commissions
-
-
-
-
4,131
-
8,856
Wealth management income
1,842
1,713
1,791
1,509
1,537
3,556
3,022
Income from Bank Owned Life Insurance
1,207
1,697
1,532
1,050
1,015
2,904
2,432
Other non-interest income
150
239
134
217
102
389
194
Total non-interest Income
12,078
12,496
11,789
13,253
53,346
24,574
65,808
Non-interest Expense: Compensation and benefits
21,353
23,394
20,963
21,813
24,175
44,747
49,833
Occupancy
3,434
3,365
3,318
3,145
3,320
6,799
6,894
FDIC insurance premium
1,150
1,120
1,383
1,346
1,786
2,270
3,074
Financial institutions tax
980
1,035
761
989
961
2,015
1,813
Data processing
5,067
4,670
4,678
4,010
3,640
9,737
7,503
Amortization of intangibles
946
990
1,033
1,078
1,223
1,936
2,493
Other non-interest expense
5,228
5,326
5,757
5,671
5,738
10,554
12,024
Total non-interest operating expenses
38,158
39,900
37,893
38,052
40,843
78,058
83,634
Transaction costs
50
-
-
-
3,652
50
3,652
Total non-interest expenses
38,208
39,900
37,893
38,052
44,495
78,108
87,286
Income (loss) before income taxes
20,193
22,303
24,686
30,238
62,303
42,496
84,555
Income tax expense (benefit)
4,017
4,514
4,616
5,551
13,912
8,531
18,015
Net income (loss)
$
16,176
$
17,789
$
20,070
$
24,687
$
48,391
$
33,965
$
66,540
Earnings per common share: Basic
$
0.45
$
0.50
$
0.56
$
0.69
$
1.35
$
0.95
$
1.86
Diluted
$
0.45
$
0.50
$
0.56
$
0.69
$
1.35
$
0.95
$
1.86
Average Shares Outstanding: Basic
35,715
35,772
35,655
35,730
35,722
35,696
35,686
Diluted
35,793
35,771
35,772
35,794
35,800
35,789
35,750
Premier Financial Corp. Selected
Quarterly Information Three Months Ended Six
Months Ended (dollars in thousands, except per share data)
6/30/24 3/31/24 12/31/23 9/30/23 6/30/23
6/30/24
6/30/23
Summary of Operations Tax-equivalent interest
income (1)
$
98,542
$
96,417
$
96,340
$
94,951
$
90,226
$
194,959
$
174,485
Interest expense
49,245
46,768
43,747
40,633
36,167
96,013
64,036
Tax-equivalent net interest income (1)
49,297
49,649
52,593
54,318
54,059
98,946
110,449
Provision expense for credit losses
2,902
(133
)
1,761
(773
)
540
2,769
4,246
Non-interest income (ex securities gains/losses)
12,254
12,533
11,114
12,997
53,282
24,787
67,155
Core non-interest income (ex securities gains/losses) (2)
12,254
12,533
11,114
12,997
16,986
24,787
30,859
Non-interest expense
38,208
39,900
37,893
38,052
44,495
78,108
87,286
Core non-interest expense (2)
38,158
39,900
37,893
38,052
40,843
78,058
83,634
Income tax expense (benefit)
4,017
4,514
4,616
5,551
13,912
8,531
18,015
Net income (loss)
16,176
17,789
20,070
24,687
48,391
33,965
66,540
Core net income (2)
16,215
17,789
20,070
24,687
24,230
34,004
42,379
Tax equivalent adjustment (1)
72
75
42
54
67
147
170
At Period End Total assets
$
8,778,693
$
8,631,054
$
8,625,949
$
8,562,876
$
8,616,211
Goodwill and intangibles
305,852
306,798
307,788
308,822
309,900
Tangible assets (3)
8,472,841
8,324,256
8,318,161
8,254,054
8,306,311
Earning assets
7,945,986
7,832,558
7,815,540
7,744,522
7,818,825
Loans
6,682,138
6,693,745
6,739,387
6,696,869
6,708,568
Allowance for loan losses
77,222
76,679
76,512
76,513
75,921
Deposits
7,178,554
7,183,387
7,143,046
7,065,639
6,994,432
Stockholders’ equity
979,129
974,341
975,627
919,567
936,971
Stockholders’ equity / assets
11.15
%
11.29
%
11.31
%
10.74
%
10.87
%
Tangible equity (3)
673,277
667,543
667,839
610,745
627,071
Tangible equity / tangible assets
7.95
%
8.02
%
8.03
%
7.40
%
7.55
%
Average Balances Total assets
$
8,646,024
$
8,591,947
$
8,536,193
$
8,582,219
$
8,597,786
$
8,618,985
$
8,515,898
Earning assets
8,016,157
7,956,887
7,936,648
7,969,363
7,951,520
7,986,522
7,871,629
Loans
6,730,698
6,745,823
6,754,782
6,763,232
6,714,240
6,738,261
6,625,155
Deposits and interest-bearing liabilities
7,533,717
7,476,431
7,447,324
7,486,595
7,538,674
7,505,073
7,462,732
Deposits
7,119,191
7,144,343
7,098,265
7,045,827
6,799,605
7,131,767
6,816,469
Stockholders’ equity
968,451
974,560
930,835
939,456
921,441
971,505
911,569
Goodwill and intangibles
306,303
307,226
308,243
309,330
334,862
306,765
335,636
Tangible equity (3)
662,148
667,334
622,592
630,126
586,579
664,740
575,933
Per Common Share Data Earnings per share ("EPS") -
Basic
$
0.45
$
0.50
$
0.56
$
0.69
$
1.35
$
0.95
$
1.86
EPS - Diluted
0.45
0.50
0.56
0.69
1.35
0.95
1.86
EPS - Core diluted (2)
0.45
0.50
0.56
0.69
0.68
0.95
1.19
Dividends Paid
0.31
0.31
0.31
0.31
0.31
0.62
0.62
Market Value: High
$
21.30
$
24.50
$
24.87
$
22.89
$
21.01
$
24.15
$
27.99
Low
18.72
18.68
15.79
15.70
13.60
18.72
13.60
Close
20.46
20.30
24.10
17.06
16.02
20.46
16.02
Common Book Value
27.32
27.20
27.31
25.74
26.23
Tangible Common Book Value (3)
18.79
18.64
18.69
17.09
17.55
Shares outstanding, end of period (000s)
35,840
35,817
35,730
35,731
35,727
Performance Ratios (annualized) Tax-equivalent
net interest margin (1)
2.46
%
2.50
%
2.65
%
2.73
%
2.72
%
2.48
%
2.81
%
Return on average assets
0.75
%
0.83
%
0.93
%
1.14
%
2.26
%
0.79
%
1.58
%
Core return on average assets (2)
0.75
%
0.83
%
0.93
%
1.14
%
1.13
%
0.79
%
1.00
%
Return on average equity
6.72
%
7.34
%
8.55
%
10.43
%
21.06
%
7.03
%
14.72
%
Core return on average equity (2)
6.73
%
7.34
%
8.55
%
10.43
%
10.55
%
7.04
%
9.38
%
Return on average tangible equity
9.83
%
10.72
%
12.79
%
15.54
%
33.09
%
10.28
%
23.30
%
Core return on average tangible equity (2)
9.85
%
10.72
%
12.79
%
15.54
%
16.57
%
10.29
%
14.84
%
Efficiency ratio (4)
62.08
%
64.17
%
59.48
%
56.53
%
41.45
%
63.13
%
49.15
%
Core efficiency ratio (2)
61.99
%
64.17
%
59.48
%
56.53
%
57.49
%
63.09
%
59.19
%
Non-interest expenses / average assets
1.78
%
1.87
%
1.76
%
1.76
%
2.08
%
1.82
%
2.07
%
Core non-interest expenses / average assets
1.78
%
1.87
%
1.76
%
1.76
%
1.91
%
1.82
%
1.98
%
Effective tax rate
19.89
%
20.24
%
18.70
%
18.36
%
22.33
%
20.07
%
21.31
%
Core effective tax rate
19.90
%
20.24
%
18.70
%
18.36
%
22.33
%
20.08
%
18.36
%
Common dividend payout ratio
68.89
%
62.00
%
55.36
%
44.93
%
22.96
%
65.26
%
33.33
%
Core common dividend payout ratio
68.89
%
62.00
%
55.36
%
44.93
%
22.96
%
65.26
%
52.10
%
(1) Interest income on tax-exempt securities and loans has been
adjusted to a tax-equivalent basis using the statutory federal
income tax rate of 21%. (2) Core items exclude the impact of
strategic merger and insurance agency disposition related items.
See non-GAAP reconciliations. (3) Tangible assets = total
assets less the sum of goodwill and core deposit and other
intangibles. Tangible equity = total stockholders' equity less the
sum of goodwill, core deposit and other intangibles, and preferred
stock. Tangible common book value = tangible equity divided by
shares outstanding at the end of the period. (4) Efficiency
ratio = Non-interest expense divided by sum of tax-equivalent net
interest income plus non-interest income, excluding securities
gains or losses, net.
Premier Financial Corp.
Yield Analysis (dollars in thousands)
Three Months
Ended Six Months Ended 6/30/24 3/31/24 12/31/23
9/30/23 6/30/23
6/30/24 6/30/23
Average Balances
Interest-earning assets: Loans receivable (1)
$
6,730,698
$
6,745,823
$
6,754,782
$
6,763,232
$
6,714,240
$
6,738,261
$
6,625,155
Securities
1,221,006
1,152,346
1,121,231
1,137,730
1,155,451
1,186,676
1,172,809
Interest Bearing Deposits
37,226
34,924
36,761
38,210
36,730
36,075
35,898
FHLB stock
27,227
23,794
23,874
30,191
45,099
25,510
37,767
Total interest-earning assets
8,016,157
7,956,887
7,936,648
7,969,363
7,951,520
7,986,522
7,871,629
Non-interest-earning assets
629,867
635,060
599,545
612,856
646,266
632,463
644,269
Total assets
$
8,646,024
$
8,591,947
$
8,536,193
$
8,582,219
$
8,597,786
$
8,618,985
$
8,515,898
Deposits and Interest-bearing Liabilities: Interest bearing
deposits
$
5,669,033
$
5,650,823
$
5,541,498
$
5,490,945
$
5,195,727
$
5,659,928
$
5,137,442
FHLB advances and other
329,253
246,846
263,848
355,576
653,923
288,049
561,133
Subordinated debentures
85,273
85,242
85,211
85,179
85,146
85,257
85,130
Notes payable
-
-
-
13
-
-
-
Total interest-bearing liabilities
6,083,559
5,982,911
5,890,557
5,931,713
5,934,796
6,033,234
5,783,705
Non-interest bearing deposits
1,450,158
1,493,520
1,556,767
1,554,882
1,603,878
1,471,839
1,679,027
Total including non-interest-bearing deposits
7,533,717
7,476,431
7,447,324
7,486,595
7,538,674
7,505,073
7,462,732
Other non-interest-bearing liabilities
143,856
140,956
158,034
156,168
137,671
142,407
141,597
Total liabilities
7,677,573
7,617,387
7,605,358
7,642,763
7,676,345
7,647,480
7,604,329
Stockholders' equity
968,451
974,560
930,835
939,456
921,441
971,505
911,569
Total liabilities and stockholders' equity
$
8,646,024
$
8,591,947
$
8,536,193
$
8,582,219
$
8,597,786
$
8,618,985
$
8,515,898
IEAs/IBLs
132
%
133
%
135
%
134
%
134
%
132
%
136
%
Interest Income/Expense Interest-earning
assets: Loans receivable (2)
$
88,567
$
87,603
$
87,929
$
86,618
$
81,622
$
176,169
$
157,684
Securities (2)
8,731
7,671
7,050
6,991
7,058
16,402
14,417
Interest Bearing Deposits
638
609
740
652
641
1,247
1,085
FHLB stock
606
534
621
690
905
1,141
1,299
Total interest-earning assets
98,542
96,417
96,340
94,951
90,226
194,959
174,485
Deposits and Interest-bearing Liabilities: Interest bearing
deposits
$
43,927
$
42,567
$
39,250
$
34,874
$
26,825
$
86,494
$
48,283
FHLB advances and other
4,159
3,039
3,328
4,597
8,217
7,198
13,554
Subordinated debentures
1,159
1,162
1,169
1,162
1,125
2,321
2,199
Notes payable
-
-
-
-
-
-
-
Total interest-bearing liabilities
49,245
46,768
43,747
40,633
36,167
96,013
64,036
Non-interest bearing deposits
-
-
-
-
-
-
-
Total including non-interest-bearing deposits
49,245
46,768
43,747
40,633
36,167
96,013
64,036
Net interest income
$
49,297
$
49,649
$
52,593
$
54,318
$
54,059
$
98,946
$
110,449
Annualized Average Rates Interest-earning
assets: Loans receivable
5.26
%
5.19
%
5.21
%
5.12
%
4.86
%
5.23
%
4.76
%
Securities (3)
2.86
%
2.66
%
2.52
%
2.46
%
2.44
%
2.76
%
2.46
%
Interest Bearing Deposits
6.86
%
6.98
%
8.05
%
6.83
%
6.98
%
6.91
%
6.04
%
FHLB stock
8.90
%
8.98
%
10.40
%
9.14
%
8.03
%
8.95
%
6.88
%
Total interest-earning assets
4.92
%
4.85
%
4.86
%
4.77
%
4.54
%
4.88
%
4.43
%
Deposits and Interest-bearing Liabilities: Interest bearing
deposits
3.10
%
3.01
%
2.83
%
2.54
%
2.07
%
3.06
%
1.88
%
FHLB advances and other
5.05
%
4.92
%
5.05
%
5.17
%
5.03
%
5.00
%
4.83
%
Subordinated debentures
5.44
%
5.45
%
5.49
%
5.46
%
5.29
%
5.44
%
5.17
%
Notes payable
-
-
-
-
-
-
-
Total interest-bearing liabilities
3.24
%
3.13
%
2.97
%
2.74
%
2.44
%
3.18
%
2.21
%
Non-interest bearing deposits
-
-
-
-
-
-
-
Total including non-interest-bearing deposits
2.61
%
2.50
%
2.35
%
2.17
%
1.92
%
2.56
%
1.72
%
Net interest spread
1.68
%
1.72
%
1.89
%
2.03
%
2.10
%
1.70
%
2.22
%
Net interest margin (4)
2.46
%
2.50
%
2.65
%
2.73
%
2.72
%
2.48
%
2.81
%
(1) Includes average PPP loans of:
$
394
$
442
$
495
$
553
$
673
$
418
$
818
(2) Interest on certain tax exempt loans and securities is not
taxable for Federal income tax purposes. In order to compare the
tax-exempt yields on these assets to taxable yields, the interest
earned on these assets is adjusted to a pre-tax equivalent amount
based on the marginal corporate federal income tax rate of 21%. (3)
Securities yield = annualized interest income divided by the
average balance of securities, excluding average unrealized
gains/losses. (4) Net interest margin is tax equivalent net
interest income divided by average interest-earning assets.
Premier Financial Corp. Deposits and Liquidity
(dollars in thousands)
As of and for the Three Months Ended
6/30/24 3/31/24 12/31/23 9/30/23 6/30/23
Ending
Balances Non-interest-bearing demand deposits
$
1,438,764
$
1,467,161
$
1,591,979
$
1,545,595
$
1,573,837
Savings deposits
632,831
656,122
677,679
709,938
748,392
Interest-bearing demand deposits
530,932
553,331
565,757
580,069
594,325
Money market account deposits
1,437,688
1,426,809
1,374,526
1,279,551
1,282,721
Time deposits
1,052,934
1,051,955
998,002
925,353
904,717
Public funds, ICS and CDARS deposits
1,702,727
1,659,227
1,593,159
1,632,952
1,477,203
Brokered deposits
382,678
368,782
341,944
392,181
413,237
Total deposits
$
7,178,554
$
7,183,387
$
7,143,046
$
7,065,639
$
6,994,432
Average Balances Non-interest-bearing demand deposits
$
1,450,158
$
1,493,520
$
1,556,767
$
1,554,882
$
1,603,878
Savings deposits
643,523
663,786
691,295
728,545
762,074
Interest-bearing demand deposits
546,496
547,168
557,210
575,744
603,572
Money market account deposits
1,430,619
1,411,075
1,331,623
1,278,381
1,311,177
Time deposits
1,049,566
1,025,946
959,420
912,579
872,991
Public funds, ICS and CDARS deposits
1,636,188
1,618,554
1,614,339
1,573,213
1,399,749
Brokered deposits
362,641
384,294
387,611
422,483
246,164
Total deposits
$
7,119,191
$
7,144,343
$
7,098,265
$
7,045,827
$
6,799,605
Average Rates Non-interest-bearing demand deposits
0.00
%
0.00
%
0.00
%
0.00
%
0.00
%
Savings deposits
0.03
%
0.03
%
0.03
%
0.03
%
0.02
%
Interest-bearing demand deposits
0.08
%
0.12
%
0.13
%
0.11
%
0.10
%
Money market account deposits
2.94
%
2.83
%
2.65
%
2.02
%
1.73
%
Time deposits
3.80
%
3.55
%
3.15
%
2.68
%
2.27
%
Public funds, ICS and CDARS deposits
4.52
%
4.48
%
4.30
%
4.18
%
3.71
%
Brokered deposits
5.32
%
5.33
%
5.46
%
5.36
%
4.92
%
Total deposits
2.47
%
2.38
%
2.21
%
1.98
%
1.58
%
Other Deposits Data Loans/Deposits Ratio
93.1
%
93.2
%
94.3
%
94.8
%
95.9
%
Uninsured deposits %
32.5
%
32.6
%
33.1
%
32.8
%
31.5
%
Adjusted uninsured deposits % (1)
17.0
%
17.6
%
18.9
%
17.7
%
17.3
%
Top 20 depositors %
14.4
%
14.0
%
13.9
%
14.1
%
12.4
%
Public funds %
18.9
%
18.5
%
17.9
%
18.8
%
17.5
%
Average account size (excluding brokered)
$
27.5
$
27.0
$
26.9
$
27.1
$
26.7
Securities Data Held-to-maturity (HTM) at fair value
$
-
$
-
$
-
$
-
$
-
Available-for-sale (AFS) at fair value (2)
1,081,120
1,014,433
946,708
911,184
961,123
Equity investment at fair value (3)
5,559
5,736
5,773
5,860
6,458
Total securities at fair value
$
1,086,679
$
1,020,169
$
952,481
$
917,044
$
967,581
Cash+Securities/Assets
14.2
%
12.9
%
12.4
%
12.1
%
12.6
%
Projected AFS cash flow in next 12 months
$
115,609
$
89,563
$
69,067
$
66,495
$
64,687
AFS average life (years)
4.9
5.3
6.2
6.5
6.5
Liquidity Sources Cash and cash equivalents
$
155,651
$
89,681
$
114,756
$
117,497
$
121,727
Unpledged securities at fair value
477,776
398,610
314,385
280,916
298,471
FHLB borrowing capacity
1,247,632
1,383,086
1,336,707
1,311,091
1,542,459
Brokered deposits
492,359
491,447
513,767
316,697
288,719
Bank and parent lines of credit
70,000
70,000
70,000
70,000
70,000
Federal Reserve - Discount Window and BTFP (4)
702,712
680,456
620,518
471,395
491,141
Total
$
3,146,130
$
3,113,280
$
2,970,133
$
2,567,596
$
2,812,517
Total liquidity to adjusted uninsured deposits ratio
255.7
%
244.7
%
218.3
%
204.0
%
230.5
%
(1) Adjusted for collateralized deposits, other insured
deposits and intra-company accounts. (2) Mark-to-market included in
accumulated other comprehensive income. (3) Mark-to-market included
in net income each quarter. (4) Includes capacity related to
unpledged securities at par value in excess of fair value under
Bank Term Funding Program prior to 3/31/24.
Premier
Financial Corp. Loans and Capital (dollars in thousands)
6/30/24 3/31/24 12/31/23 9/30/23 6/30/23
Loan Portfolio
Composition Residential real estate
$
1,805,984
$
1,816,416
$
1,810,265
$
1,797,676
$
1,711,632
Residential real estate construction
9,649
15,009
28,794
51,637
111,708
Total residential loans
1,815,633
1,831,425
1,839,059
1,849,313
1,823,340
Commercial real estate
2,844,792
2,830,086
2,839,905
2,820,410
2,848,410
Commercial construction
513,652
535,294
528,563
502,502
472,328
Commercial excluding PPP
1,037,718
1,030,620
1,056,334
1,038,939
1,068,795
Core commercial loans (1)
4,396,162
4,396,000
4,424,802
4,361,851
4,389,533
Consumer direct/indirect
187,936
187,664
193,830
203,800
210,390
Home equity and improvement lines
268,699
265,362
267,960
269,053
272,792
Total consumer loans
456,635
453,026
461,790
472,853
483,182
Deferred loan origination fees
13,339
12,877
13,267
12,326
11,936
Core loans (1)
6,681,769
6,693,328
6,738,918
6,696,343
6,707,991
PPP loans
369
417
469
526
577
Total loans
$
6,682,138
$
6,693,745
$
6,739,387
$
6,696,869
$
6,708,568
Loans held for sale
$
138,604
$
137,523
$
145,641
$
135,218
$
128,079
Core residential loans (1)
1,954,237
1,968,948
1,984,700
1,984,531
1,951,419
Total loans including loans held for sale but excluding PPP
6,820,373
6,830,851
6,884,559
6,831,561
6,836,070
Undisbursed construction loan funds - residential
$
52,140
$
57,246
$
72,748
$
82,689
$
102,198
Undisbursed construction loan funds - commercial
123,445
151,677
208,718
284,610
353,455
Undisbursed construction loan funds - total
175,585
208,923
281,466
367,299
455,653
Total construction loans including undisbursed funds
$
698,886
$
759,226
$
838,823
$
921,438
$
1,039,689
Gross loans (2)
$
6,844,384
$
6,889,791
$
7,007,586
$
7,051,842
$
7,152,285
Fixed rate loans %
48.7
%
49.0
%
49.3
%
49.8
%
49.8
%
Floating rate loans %
16.2
%
16.5
%
15.6
%
15.8
%
15.9
%
Adjustable rate loans repricing within 1 year %
5.2
%
3.4
%
3.4
%
2.9
%
1.5
%
Adjustable rate loans repricing over 1 year %
29.9
%
31.1
%
31.7
%
31.5
%
32.8
%
Commercial Real Estate Loans Composition Non owner
occupied excluding office
$
1,047,892
$
1,026,598
$
1,027,801
$
1,023,585
$
1,012,400
Non owner occupied office
186,266
189,436
205,302
207,869
225,046
Owner occupied excluding office
668,327
656,825
653,849
597,303
603,650
Owner occupied office
107,555
112,706
113,679
106,761
107,240
Multifamily
642,469
652,371
642,651
627,602
633,909
Agriculture land
121,597
121,102
121,544
119,710
123,104
Other commercial real estate
70,686
71,048
75,079
137,580
143,061
Total commercial real estate loans
$
2,844,792
$
2,830,086
$
2,839,905
$
2,820,410
$
2,848,410
Capital Balances Total equity
$
979,129
$
974,341
$
975,627
$
919,567
$
936,971
Less: Regulatory goodwill and intangibles
300,770
301,716
302,706
303,740
304,818
Less: Accumulated other comprehensive income/(loss) ("AOCI")
(163,038
)
(162,081
)
(153,719
)
(200,282
)
(168,721
)
Common equity tier 1 capital ("CET1")
841,397
834,706
826,640
816,109
800,874
Add: Tier 1 subordinated debt
35,000
35,000
35,000
35,000
35,000
Tier 1 capital
876,397
869,706
861,640
851,109
835,874
Add: Regulatory allowances
80,247
79,827
80,231
80,791
80,812
Add: Tier 2 subordinated debt
50,000
50,000
50,000
50,000
50,000
Total risk-based capital
$
1,006,644
$
999,533
$
991,871
$
981,900
$
966,686
Total risk-weighted assets
$
7,062,328
$
7,013,832
$
7,066,743
$
7,329,471
$
7,381,940
Capital Ratios CET1 Ratio
11.91
%
11.90
%
11.70
%
11.13
%
10.85
%
CET1 Ratio including AOCI
9.61
%
9.59
%
9.52
%
8.40
%
8.56
%
Tier 1 Capital Ratio
12.41
%
12.40
%
12.19
%
11.61
%
11.32
%
Tier 1 Capital Ratio including AOCI
10.10
%
10.09
%
10.02
%
8.88
%
9.04
%
Total Capital Ratio
14.25
%
14.25
%
14.04
%
13.39
%
13.10
%
Total Capital Ratio including AOCI
11.95
%
11.94
%
11.86
%
10.66
%
10.81
%
(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 dayspast
due % ofTotal Non AccrualLoans % ofTotal
June 30, 2024 One to four family residential real estate
$
1,805,984
$
1,781,241
$
8,960
0.50
%
$
15,783
0.87
%
Construction
698,886
698,886
-
0.00
%
-
0.00
%
Commercial real estate
2,844,792
2,832,095
8,581
0.30
%
4,116
0.14
%
Commercial
1,038,087
998,954
328
0.03
%
38,805
3.74
%
Home equity and improvement
268,699
264,563
2,478
0.92
%
1,658
0.62
%
Consumer finance
187,936
179,842
4,298
2.29
%
3,796
2.02
%
Gross loans
$
6,844,384
$
6,755,581
$
24,645
0.36
%
$
64,158
0.94
%
March 31, 2024 One to four family residential real estate
$
1,816,416
$
1,797,169
$
5,834
0.32
%
$
13,413
0.74
%
Construction
759,226
759,226
-
0.00
%
-
0.00
%
Commercial real estate
2,830,086
2,821,750
1,083
0.04
%
7,253
0.26
%
Commercial
1,031,037
1,013,857
4,440
0.43
%
12,740
1.24
%
Home equity and improvement
265,362
260,683
2,613
0.98
%
2,066
0.78
%
Consumer finance
187,664
179,741
4,364
2.33
%
3,559
1.90
%
Gross loans
$
6,889,791
$
6,832,426
$
18,334
0.27
%
$
39,031
0.57
%
June 30, 2023 One to four family residential real estate
$
1,711,632
$
1,694,024
$
7,320
0.43
%
$
10,288
0.60
%
Construction
1,039,689
1,039,404
285
0.03
%
-
0.00
%
Commercial real estate
2,848,410
2,833,765
596
0.02
%
14,049
0.49
%
Commercial
1,069,372
1,057,057
4,290
0.40
%
8,025
0.75
%
Home equity and improvement
272,792
267,617
2,945
1.08
%
2,230
0.82
%
Consumer finance
210,390
204,404
3,587
1.70
%
2,399
1.14
%
Gross loans
$
7,152,285
$
7,096,271
$
19,023
0.27
%
$
36,991
0.52
%
Loan Risk Ratings Information (dollars in thousands)
Total Balance Pass Rated Special Mention %
ofTotal Classified % ofTotal June 30, 2024
One to four family residential real estate
$
1,796,799
$
1,781,780
$
470
0.03
%
$
14,549
0.81
%
Construction
698,886
691,386
7,500
1.07
%
-
0.00
%
Commercial real estate
2,842,924
2,747,835
48,238
1.70
%
46,851
1.65
%
Commercial
1,034,491
952,016
37,107
3.59
%
45,368
4.39
%
Home equity and improvement
267,300
265,847
-
0.00
%
1,453
0.54
%
Consumer finance
187,816
184,242
-
0.00
%
3,574
1.90
%
PCD loans
16,168
13,480
164
1.01
%
2,524
15.61
%
Gross loans
$
6,844,384
$
6,636,586
$
93,479
1.37
%
$
114,319
1.67
%
March 31, 2024 One to four family residential real estate
$
1,806,724
$
1,794,030
$
487
0.03
%
$
12,207
0.68
%
Construction
759,226
751,726
7,500
0.99
%
-
0.00
%
Commercial real estate
2,828,138
2,749,206
53,456
1.89
%
25,476
0.90
%
Commercial
1,027,101
945,049
32,487
3.16
%
49,565
4.83
%
Home equity and improvement
263,897
262,046
-
0.00
%
1,851
0.70
%
Consumer finance
187,501
184,214
-
0.00
%
3,287
1.75
%
PCD loans
17,204
12,006
2,485
14.44
%
2,713
15.77
%
Gross loans
$
6,889,791
$
6,698,277
$
96,415
1.40
%
$
95,099
1.38
%
June 30, 2023 One to four family residential real estate
$
1,700,468
$
1,689,666
$
484
0.03
%
$
10,318
0.61
%
Construction
1,039,689
1,031,356
8,333
0.80
%
-
0.00
%
Commercial real estate
2,847,035
2,797,688
20,751
0.73
%
28,596
1.00
%
Commercial
1,063,744
1,021,403
27,376
2.57
%
14,965
1.41
%
Home equity and improvement
270,722
269,038
-
0.00
%
1,684
0.62
%
Consumer finance
210,158
207,963
-
0.00
%
2,195
1.04
%
PCD loans
20,469
13,981
3,786
18.50
%
2,702
13.20
%
Gross loans
$
7,152,285
$
7,031,095
$
60,730
0.85
%
$
60,460
0.85
%
Premier Financial Corp. Mortgage and Credit
Information (dollars in thousands)
As of and for the Three
Months Ended Six Months Ended Mortgage Banking
Summary 6/30/24 3/31/24 12/31/23 9/30/23 6/30/23
6/30/24 6/30/23 Revenue from sales and servicing of mortgage
loans: Mortgage banking gains, net
$
1,378
$
1,283
$
439
$
2,584
$
2,242
$
2,661
$
1,405
Mortgage loan servicing revenue (expense): Mortgage loan servicing
revenue
1,835
1,842
1,844
1,850
1,845
3,676
3,733
Amortization of mortgage servicing rights
(1,313
)
(1,238
)
(1,257
)
(1,291
)
(1,277
)
(2,551
)
(2,496
)
Mortgage servicing rights valuation adjustments
147
463
(224
)
131
130
610
24
669
1,067
363
690
698
1,735
1,261
Total revenue from sale/servicing of mortgage loans
$
2,047
$
2,350
$
802
$
3,274
$
2,940
$
4,396
$
2,666
Mortgage servicing rights: Balance at beginning of period
$
18,921
$
19,452
$
20,174
$
20,823
$
21,447
$
19,452
$
21,858
Loans sold, servicing retained
678
707
535
642
653
1,385
1,461
Amortization
(1,313
)
(1,238
)
(1,257
)
(1,291
)
(1,277
)
(2,551
)
(2,496
)
Balance at end of period
18,286
18,921
19,452
20,174
20,823
18,286
20,823
Valuation allowance: Balance at beginning of period
(293
)
(756
)
(532
)
(663
)
(793
)
(756
)
(687
)
Impairment recovery (charges)
147
463
(224
)
131
130
610
24
Balance at end of period
(146
)
(293
)
(756
)
(532
)
(663
)
(146
)
(663
)
Net carrying value at end of period
$
18,140
$
18,628
$
18,696
$
19,642
$
20,160
$
18,140
$
20,160
Allowance for credit losses - loans Beginning
allowance
$
76,679
$
76,512
$
76,513
$
75,921
$
74,273
$
76,512
$
72,816
Provision (benefit) for credit losses - loans
3,173
560
2,143
245
1,410
3,733
5,354
Net recoveries (charge-offs)
(2,630
)
(393
)
(2,144
)
347
238
(3,023
)
(2,249
)
Ending allowance
$
77,222
$
76,679
$
76,512
$
76,513
$
75,921
$
77,222
$
75,921
Total loans
$
6,682,138
$
6,693,745
$
6,739,387
$
6,696,869
$
6,708,568
Less: PPP loans
(369
)
(417
)
(469
)
(526
)
(577
)
Total loans ex PPP
$
6,681,769
$
6,693,328
$
6,738,918
$
6,696,343
$
6,707,991
Allowance for credit losses (ACL)
$
77,222
$
76,679
$
76,512
$
76,513
$
75,921
Add: Unaccreted purchase accounting marks
575
889
1,160
1,526
1,901
Adjusted ACL
$
77,797
$
77,568
$
77,672
$
78,039
$
77,822
ACL/Loans
1.16
%
1.15
%
1.14
%
1.14
%
1.13
%
Adjusted ACL/Loans ex PPP
1.16
%
1.16
%
1.15
%
1.17
%
1.16
%
Credit Quality Total non-performing loans (1)
$
64,158
$
39,031
$
35,491
$
39,463
$
36,991
Real estate owned (REO)
394
255
243
387
561
Total non-performing assets (2)
$
64,552
$
39,286
$
35,734
$
39,850
$
37,552
Net charge-offs (recoveries)
2,630
393
2,144
(347
)
(238
)
Allowance for credit losses / non-performing assets
119.63
%
195.18
%
214.12
%
192.00
%
202.18
%
Allowance for credit losses / non-performing loans
120.36
%
196.46
%
215.58
%
193.89
%
205.24
%
Non-performing assets / loans plus REO
0.97
%
0.59
%
0.53
%
0.60
%
0.56
%
Non-performing assets / total assets
0.74
%
0.46
%
0.41
%
0.47
%
0.44
%
Net charge-offs (recoveries) / average loans
0.16
%
0.02
%
0.13
%
-0.02
%
-0.01
%
Net charge-offs (recoveries) / average loans LTM
0.07
%
0.03
%
0.06
%
0.04
%
0.14
%
(1) Non-performing loans consist of non-accrual loans. (2)
Non-performing assets are non-performing loans plus real estate and
other assets acquired by foreclosure or deed-in-lieu thereof.
Premier Financial Corp. Non-GAAP
Reconciliations Three Months Ended Six Months
Ended (In thousands, except per share and ratio data)
6/30/24 3/31/24 12/31/23 9/30/23 6/30/23
6/30/24
6/30/23 Total non-interest expenses
$
38,208
$
39,900
$
37,893
$
38,052
$
44,495
$
78,108
$
87,286
Less: Transaction costs (pre-tax)(1)
50
-
-
-
3,652
50
3,652
Core non-interest expenses
$
38,158
$
39,900
$
37,893
$
38,052
$
40,843
$
78,058
$
83,634
Average total assets
$
8,646,024
$
8,591,947
$
8,536,193
$
8,582,219
$
8,597,786
$
8,618,985
$
8,515,898
Core non-interest expenses / average assets
1.78
%
1.87
%
1.76
%
1.76
%
1.91
%
1.82
%
1.98
%
Core non-interest expenses
$
38,158
$
39,900
$
37,893
$
38,052
$
40,843
$
78,058
$
83,634
Less: Insurance agency expenses
-
-
-
-
3,432
-
6,425
Core non-interest expenses excluding insurance agency
$
38,158
$
39,900
$
37,893
$
38,052
$
37,411
#
$
78,058
$
77,209
Non-interest income
$
12,078
$
12,496
$
11,789
$
13,253
$
53,346
$
24,574
$
65,808
Less: Gain on sale of insurance agency (pre-tax)
-
-
-
-
36,296
-
36,296
Core non-interest income
$
12,078
$
12,496
$
11,789
$
13,253
$
17,050
$
24,574
$
29,512
Less: Securities gains (losses)
(176
)
(37
)
675
256
64
(213
)
(1,347
)
Core non-interest income (ex securities gains/losses)
$
12,254
$
12,533
$
11,114
$
12,997
$
16,986
$
24,787
$
30,859
Tax-equivalent net interest income
$
49,297
$
49,649
$
52,593
$
54,318
$
54,059
$
98,946
$
110,449
Core non-interest income (ex securities gains/losses)
12,254
12,533
11,114
12,997
16,986
24,787
30,859
Total core revenues
61,551
62,182
63,707
67,315
71,045
123,733
141,308
Core non-interest expenses
$
38,158
$
39,900
$
37,893
$
38,052
$
40,843
$
78,058
$
83,634
Core efficiency ratio
61.99
%
64.17
%
59.48
%
56.53
%
57.49
%
63.09
%
59.19
%
Income (loss) before income taxes
$
20,193
$
22,303
$
24,686
$
30,238
$
62,303
$
42,496
$
84,555
Add: Provision (benefit) for credit losses
2,902
(133
)
1,761
(773
)
540
2,769
4,246
Pre-tax pre-provision income
23,095
22,170
26,447
29,465
62,843
45,265
88,801
Add: Transaction costs (pre-tax)
50
-
-
-
3,652
50
3,652
Less: Gain on sale of insurance agency (pre-tax)
-
-
-
-
36,296
-
36,296
Core pre-tax pre-provision income
$
23,145
$
22,170
$
26,447
$
29,465
$
30,199
$
45,315
$
56,157
Average total assets
$
8,646,024
$
8,591,947
$
8,536,193
$
8,582,219
$
8,597,786
$
8,618,985
$
8,515,898
Core pre-tax pre-provision return on average assets
1.08
%
1.04
%
1.23
%
1.36
%
1.41
%
1.06
%
1.33
%
Net income (loss)
$
16,176
$
17,789
$
20,070
$
24,687
$
48,391
$
33,965
$
66,540
Less: Gain on sale of insurance agency (pre-tax)
-
-
-
-
36,296
-
36,296
Add: Transaction costs (pre-tax)
50
-
-
-
3,652
50
3,652
Add: Tax impact of above items
(11
)
-
-
-
8,483
(11
)
8,483
Core net income
$
16,215
$
17,789
$
20,070
$
24,687
$
24,230
$
34,004
$
42,379
Diluted shares - Reported
35,793
35,771
35,772
35,794
35,800
35,789
35,750
Core diluted EPS
$
0.45
$
0.50
$
0.56
$
0.69
$
0.68
$
0.95
$
1.19
Average total assets
$
8,646,024
$
8,591,947
$
8,536,193
$
8,582,219
$
8,597,786
$
8,618,985
$
8,515,898
Core return on average assets
0.75
%
0.83
%
0.93
%
1.14
%
1.13
%
0.79
%
1.00
%
Average total equity
$
968,451
$
974,560
$
930,835
$
939,456
$
921,441
$
971,505
$
911,569
Core return on average equity
6.73
%
7.34
%
8.55
%
10.43
%
10.55
%
7.04
%
9.38
%
Average total tangible equity
$
662,148
$
667,334
$
622,592
$
630,126
$
586,579
$
664,740
$
575,933
Core return on average tangible equity
9.85
%
10.72
%
12.79
%
15.54
%
16.57
%
10.29
%
14.84
%
(1) Transaction costs for 2024 relate to the strategic
merger transaction. Transaction costs for 2023 relate to the
insurance agency sale.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240726360335/en/
Paul Nungester EVP and CFO 419.785.8700
PNungester@yourpremierbank.com
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