Second Quarter 2021
Highlights
- Net income of $31.4 million, up $2.3 million (8.0%) or up $0.7
million (2.2%) excluding merger-related provision and expenses from
2020 second quarter
- Earnings per share of $0.84, up $0.06 (7.7%) or up $0.02 (2.4%)
excluding merger-related provision and expenses from 2020 second
quarter
- Service fee income of $6.3 million, up $0.7 million (11.9%)
from 2020 second quarter
- Loan growth of $45 million excluding PPP (up 3.6% annualized)
including $36 million for commercial loans (up 4.4% annualized)
during 2021 second quarter
- Average deposit costs down 4 basis points to 0.23% from first
quarter 2021
- Asset quality improved with non-performing assets down to 0.54%
of assets, classifieds down to 1.7% of loans and effectively 100%
of COVID deferrals return to pay for 2021 second quarter
- Allowance to Loans ratio of 1.33%, or 1.41% excluding PPP loans
for 2021 second quarter
- Pre-tax pre-provision ROAA of 1.90% for 2021 second
quarter
- ROA, ROE and ROTE of 1.67%, 12.50% and 19.05% for 2021 second
quarter
- Increased dividend $0.01 to $0.27 per share, up 23% year to
date
Premier Financial Corp.
(Nasdaq: PFC) (“Premier” or the “Company”) today announced 2021
second quarter results. Net income for the second quarter of 2021
was $31.4 million, or $0.84 per diluted common share, compared to
$29.1 million, or $0.78 per diluted common share, for the second
quarter of 2020. The prior year’s results include the impact of
$2.1 million of acquisition-related charges for the three months
ended June 30, 2020, which had an after-tax cost of $1.7 million or
$0.04 per diluted common share. Net income for the six months ended
June 30, 2021, was $72.4 million, or $1.94 per diluted common
share, compared to $6.6 million, or $0.19 per diluted common share,
for the six months ended June 30, 2020. The six-month
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 $48.2 million
that included $25.9 million related to acquisition accounting for
an after-tax cost of $20.5 million, or $0.59 per diluted common
share. The first half of 2021 included a provision recovery of
$10.9 million, which had an after-tax benefit of $8.6 million, or
$0.23 per diluted common share, and no acquisition impact.
Additionally, the prior year’s six-month results include the impact
of $13.6 million of acquisition-related charges, which had an
after-tax cost of $11.1 million, or $0.32 per diluted common share.
Excluding the impact of the acquisition-related provision and
charges, earnings for the first half of 2020 were $38.2 million, or
$1.11 per diluted common share.
“Results for the second quarter reflect the continued economic
resurgence of our business and consumer clients across all
markets,” said Gary Small, President and CEO of Premier. “The
Premier team drove excellent new business generation and delivered
solid loan growth during the quarter in our core commercial,
consumer and residential mortgage business lines. Household
deposits remain high, debt levels have improved and a double-digit
increase in debit card and ATM revenue suggests that our clients
are more confident and well on their way to a brighter future.”
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 for the
year ended December 31, 2020. Total gross fees for these loans
equaled $14.8 million. To date, Premier Bank has recognized $13.0
million as loan interest income, including $2.8 million and $6.8
million during the three and six months ended June 30, 2021,
respectively. Additionally, a total of $349.6 million in loans have
been extinguished to date, including $178.4 million and $293.2
million during the three and six months ended June 30, 2021,
respectively.
Beginning in January 2021, Premier Bank participated in the
second round of PPP lending and made 2,229 loans for a total of
$193.6 million during the six months ended June 30, 2021. Total
gross fees for these loans were $7.8 million and Premier Bank has
recognized $0.4 million and $0.6 million in loan interest income
during the three and six months ended June 30, 2021,
respectively.
Net interest income up compared to second quarter of
2020
Net interest income of $56.6 million in the second quarter of
2021 was up from $54.3 million in the second quarter of 2020. The
increase over the prior year’s second quarter was attributable to
growth in interest-earning assets, PPP fees and a 53% decrease in
average costs of funds. Net interest margin was 3.34% for the
second quarter of 2021, down from 3.43% in the first quarter of
2021, and down from 3.51% in the second quarter of 2020. Yield on
interest earning assets decreased to 3.59% in the second quarter of
2021, down 14 basis points from 3.73% in the first quarter of 2021.
Total cost of funds decreased 5 basis points in the second quarter
of 2021 to 0.26% from 0.31% in the first quarter of 2021 while the
total cost of interest-bearing liabilities decreased 6 basis points
to 0.36% from 0.42%. The 2021 second 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 second quarter
results also include the impact of PPP loans. Interest income
includes $3.95 million on average balances of $378.5 million, which
increased net interest margin by 5 basis points. Excluding the
impact of acquisition marks and PPP loans, net interest margin
would be 3.20% for the second quarter of 2021 compared to 3.25% for
the first quarter of 2021 and 3.34% for the second quarter of
2020.
“We are pleased by the quarter’s net interest income growth that
was driven by core loan growth across the board and diligent
efforts to reduce our deposit funding costs,” said Small. “We
anticipate the current, robust deposit environment will be with us
for the foreseeable future along with a corresponding expanded
securities portfolio. In this difficult rate environment, we will
continue to prioritize delivering income growth while taking steps
to maintain margins.”
Non-interest income down from second quarter of 2020
Premier’s non-interest income in the second quarter of 2021 was
$17.5 million compared with $23.0 million in the second quarter of
2020. Total mortgage banking income decreased to $2.2 million in
the second quarter of 2021 from $9.9 million in the second quarter
of 2020. Gains from the sale of mortgage loans decreased to $2.7
million in the second quarter of 2021 from $11.5 million in the
second quarter of 2020. While total mortgage loan production has
been consistently strong compared to prior year, gains have
declined due to compressed margins, a lower saleable mix and less
favorable marks on the in-process portfolio. Mortgage loan
servicing revenue of $1.9 million in the second quarter of 2021 was
consistent with $1.9 million in the second quarter of 2020.
Amortization of mortgage servicing rights decreased to $2.0 million
in the second quarter of 2021 from $2.2 million in the second
quarter of 2020. Premier also had a negative change in the
valuation adjustment for mortgage servicing assets of $0.4 million
in the second quarter of 2021 compared with a negative adjustment
of $1.4 million in the second quarter of 2020. This item closely
follows the trend in USTN-10, which declined 29 basis points during
the quarter to 1.45% at June 30, 2021.
For the second quarter of 2021, service fees and other charges
were $6.3 million, up 12% from $5.6 million in the second quarter
of 2020 primarily due to higher ATM and interchange related fees.
Revenues from insurance commissions, wealth management and BOLI
were generally consistent with prior year totaling $6.5 million in
second quarter 2021 compared to $6.6 million in second quarter
2020. Securities gains were $0.7 million in the second quarter of
2021 compared to a loss of $2,000 in the second quarter of 2020.
Other non-interest income was $2.0 million in the second quarter of
2021, up from $0.9 million in the second quarter of 2020 primarily
due to a $1.3 million non-recurring settlement payment this
quarter.
“Residential mortgage new business activity for the quarter
continued at the accelerated pace experienced over the past few
quarters,” said Small. “However, mortgage banking income for the
quarter was tempered by a higher percentage of the new business
being held in portfolio, tighter pricing and unfavorable marks for
the sizable in-process portfolio generated by the very robust
production activity of the past two quarters. As we closed the
quarter, the percentage of salable business began returning to
expected levels, in-process loans were trending down and pricing
stabilized leaving us better positioned for the remainder of the
year.”
Core non-interest expenses up from second quarter of
2020
Total non-interest expense was $38.4 million in the second
quarter of 2021, up from $38.0 million in the second quarter of
2020, or up from $35.9 million excluding $2.1 million of
acquisition related charges. Compensation and benefits increased to
$21.0 million in the second quarter of 2021, compared to $19.6
million in the second quarter of 2020. Occupancy expense was $3.8
million in the second quarter of 2021, down from $4.1 million in
the second quarter of 2020. Data processing cost was $3.3 million
in the second quarter of 2021, down from $3.8 million in the second
quarter of 2020. Amortization of intangibles was $1.6 million in
the second quarter of 2021, down from $1.8 million in the second
quarter of 2020. Other non-interest expense was $6.9 million in the
second quarter of 2021, up from $5.0 million in the second quarter
of 2020 partly due to higher costs related to ATM and interchange
volumes, loan volumes and travel and entertainment costs.
Credit quality
Non-performing assets totaled $41.3 million, or 0.54% of assets,
at June 30, 2021, a decrease from $49.4 million at March 31, 2021,
but an increase from $40.0 million at June 30, 2020. Accruing
troubled debt restructured loans were $5.9 million at June 30,
2021, compared with $7.9 million at June 30, 2020. Loan
delinquencies increased to $9.9 million, or 0.2% of loans, at June
30, 2021, from $9.5 million at March 31, 2021, but decreased from
$11.0 million at June 30, 2020.
The 2021 second quarter results include net loan recoveries of
$0.2 million and a total provision credit of $3.9 million compared
with net loan recoveries of $0.8 million and a total provision
expense of $3.0 million for the same period in 2020. The allowance
for credit losses on loans as a percentage of total loans was 1.33%
at June 30, 2021, or 1.41% excluding PPP loans, compared with 1.37%
at March 31, 2021, or 1.49% excluding PPP loans, and 1.62%, or
1.76% excluding PPP loans, at June 30, 2020. The continued economic
improvement from the 2020 pandemic-related downturn led to the
year-over-year decrease in the provision expense and allowance
percentage. As of June 30, 2021, Premier Bank had no commercial
loan pandemic-related deferrals, down from $32.4 million at March
31, 2021, and only one retail loan for $13,000, down from $3.4
million at March 31, 2021.
“We are delighted with this quarter’s improved asset quality,
which included a 16% reduction in non-performing assets,” said Paul
Nungester, CFO of Premier. “These enhancements along with a second
consecutive quarter of recoveries and an even better economic
forecast led to a further reduction in our reserve levels. We
committed to supporting our clients during the pandemic through our
COVID deferral program and are glad to see that they are confident
and gaining momentum with essentially all now back in return-to-pay
status.”
Year to date results
For the six-month period ended
June 30, 2021, net income totaled $72.4 million, or $1.94 per
diluted common share, compared to $6.6 million, or $0.19 per
diluted common share for the six months ended June 30, 2020.
Results for the first half of 2020 included five months of income
and expenses from UCFC compared to six months in 2021. The
year-over-year comparison is also substantially impacted by the
prior year’s provision expense of $48.2 million, which included
$25.9 million related to acquisition accounting for an after-tax
cost of $20.5 million, or $0.59 per diluted common share. The first
half of 2021 included a provision credit of $10.9 million, which
had an after-tax benefit of $8.6 million, or $0.23 per diluted
common share, and no acquisition impact. Additionally, the prior
year’s results include the impact of $13.6 million of
acquisition-related charges, which had an after-tax cost of $11.1
million, or $0.32 per diluted common share. Excluding the impact of
acquisition-related provision and charges, earnings for the first
half of 2020 were $38.2 million, or $1.11 per diluted common
share.
Net interest income was $113.1
million for the first six months of 2021 compared with $99.8
million in the first six months of 2020. Average interest-earning
assets increased to $6.71 billion in the first six months of 2021
compared to $5.56 billion in the first six months of 2020. Net
interest margin for the first six months of 2021 was 3.39%, down 24
basis points from the 3.63% margin reported in the six-month period
ended June 30, 2020. Results include the impact of acquisition
marks and related accretion for the UCFC acquisition. For the first
six months of 2021, interest income includes $2.6 million of
accretion and interest expense includes $0.7 million of accretion,
which combined added 10 basis points of net interest margin. The
results in the first half of 2021 also include the impact of PPP
loans. Interest income includes $9.0 million on average balances of
$406.8 million, which increased net interest margin by 7 basis
points. Excluding the impact of acquisition marks and PPP loans,
net interest margin was 3.22% for the first half of 2021 compared
to 3.48% for the first half of 2020.
Non-interest income for the
first six months of 2021 was $43.8 million compared to $37.0
million during the same period of 2020. Service fees and other
charges were $11.8 million for the first six months of 2021, up
from $10.8 million during the same period of 2020. Mortgage banking
income was $12.7 million for the first six months of 2021, up from
$10.7 million during the same period of 2020. Insurance commissions
were $8.9 million for the first six months of 2021 compared with
$9.2 million for the same period of 2020. Wealth management income
was $3.3 million for the first six months of 2021, up from $2.9
million during the same period of 2020. Securities gains were $2.8
million for the first six months of 2021 compared to a loss of
$2,000 for the same period in 2020. Approximately $2.0 million of
the 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 the higher income over the
next three years. The other $0.8 million was related to unrealized
gains on our trading securities due to the improved market for
these financial institution equities. BOLI income increased to $2.0
million in the first half of 2021, including $0.3 million of claim
gains, compared to $1.6 million and no claim gains in the first
half of 2020. Other non-interest income for the first half of 2021
was $2.3 million compared to $1.6 million in 2020.
Non-interest expense was $77.2
million for the first six months of 2021 compared to $80.3 million,
or $66.7 million excluding acquisition-related charges, for the
same period of 2020. Compensation and benefits expense was $43.0
million for the first six months of 2021 compared with $37.2
million during the same period of 2020. Expenses also included net
increases of $1.0 million for occupancy, FDIC insurance premiums,
financial institution taxes, data processing and amortization of
intangibles and $3.5 million for other expenses.
Total assets at $7.59 billion
Total assets at June 30, 2021,
were $7.59 billion compared to $7.53 billion at March 31, 2021, and
$7.01 billion at June 30, 2020. Gross loans receivable (including
loans held for sale) were $5.55 billion at June 30, 2021, compared
to $5.68 billion at March 31, 2021, and $5.62 billion at June 30,
2020. At June 30, 2021, gross loans receivable decreased $70.2
million from a year ago due to a $147.2 million decrease in PPP
loans. Excluding PPP, loans grew $77.0 million organically, or 1.5%
from a year ago. Commercial loans excluding PPP increased $113.2
million from June 30, 2020, to 2021, or 3.4%, despite a $45.4
million decrease in lines of credit. Securities at June 30, 2021,
were $1.29 billion compared to $932.3 million at March 31, 2021,
and $567.5 million at June 30, 2020. Also, at June 30, 2021,
goodwill and other intangible assets totaled $345.1 million
compared to $346.7 million at March 31, 2021, and $351.7 million at
June 30, 2020, with the decrease attributable to intangibles
amortization.
Total deposits at June 30,
2021, were $6.29 billion compared with $6.35 billion at March 31,
2021, and $5.76 billion at June 30, 2020. At June 30, 2021, total
deposits grew $0.53 billion organically, or 9.2% from a year
ago.
Total stockholders’ equity was
$1.03 billion at June 30, 2021, compared to $998.2 million at March
31, 2021, and $941.0 million at June 30, 2020. The increase in
stockholders’ equity from the prior year was primarily due to net
earnings. The Company also completed the repurchase of 126,366
common shares for $3.8 million during the second quarter of 2021.
At June 30, 2021, 1,834,434 common shares remained available for
repurchase under the Company’s existing authorization.
Dividend to be paid August 27
The Board of Directors declared a quarterly cash dividend of
$0.27 per common share payable August 27, 2021, to shareholders of
record at the close of business on August 20, 2021. The dividend
represents an annual dividend of 4.0 percent based on the Premier
common stock closing price on July 28, 2021. Premier has
approximately 37,179,000 common shares outstanding.
Conference call
Premier will host a conference call at 11:00 a.m. ET on Friday,
July 30, 2021, to discuss the earnings results and business trends.
The conference call may be accessed by calling 1-877-444-1726.
Internet access to the call is also available (in listen-only mode)
at the following URL:
https://services.choruscall.com/links/pfc210730.html. 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. 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 June 30, 2021,
consolidated financial statements as part of its Quarterly Report
on Form 10-Q to be filed with the SEC. Accordingly, subsequent
events could occur that may cause Premier to update its critical
accounting estimates and to revise its financial information from
that which is contained in this news release.
Non-GAAP Reporting Measures
We believe that net income, as defined by U.S. GAAP, is the most
appropriate earnings measurement. However, we consider core net
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.
June 30,
December 31,
(in thousands)
2021
2020
Assets Cash and cash equivalents Cash and amounts due
from depository institutions
$
63,790
$
79,593
Interest-bearing deposits
67,718
79,673
131,508
159,266
Available-for sale, carried at fair value
1,279,128
736,654
Trading securities, carried at fair value
12,945
1,090
Securities investments
1,292,073
737,744
Loans
5,348,400
5,491,240
Allowance for credit losses - loans
(71,367
)
(82,079
)
Loans, net
5,277,033
5,409,161
Loans held for sale
199,070
221,616
Mortgage servicing rights
18,041
13,153
Accrued interest receivable
23,459
25,434
Federal Home Loan Bank stock
12,747
16,026
Bank Owned Life Insurance
145,919
144,784
Office properties and equipment
56,259
58,665
Real estate and other assets held for sale
45
343
Goodwill
317,948
317,948
Core deposit and other intangibles
27,140
30,337
Other assets
92,478
77,257
Total Assets
$
7,593,720
$
7,211,734
Liabilities and Stockholders’ Equity
Non-interest-bearing deposits
$
1,649,664
$
1,597,262
Interest-bearing deposits
4,641,795
4,450,579
Total deposits
6,291,459
6,047,841
Advances from FHLB and PPPLF
105,000
-
Notes payable and other interest-bearing liabilities
-
-
Subordinated debentures
84,913
84,860
Advance payments by borrowers for tax and insurance
19,474
21,748
Reserve for credit losses - unfunded commitments
5,613
5,350
Other liabilities
59,558
69,659
Total Liabilities
6,566,017
6,229,458
Stockholders’ Equity Preferred stock
-
-
Common stock, net
306
306
Additional paid-in-capital
689,785
689,390
Accumulated other comprehensive income (loss)
10,953
15,004
Retained earnings
410,153
356,414
Treasury stock, at cost
(83,494
)
(78,838
)
Total stockholders’ equity
1,027,703
982,276
Total Liabilities and Stockholders’ Equity
$
7,593,720
$
7,211,734
Consolidated Statements of Income (Unaudited)
Premier Financial Corp.
Three Months Ended
Six Months Ended
June
30,
June
30,
(in thousands, except per share amounts)
2021
2020
2021
2020
Interest Income: Loans
$
55,772
$
58,796
$
113,338
$
110,256
Investment securities
4,994
2,923
8,674
5,641
Interest-bearing deposits
42
79
108
309
FHLB stock dividends
56
651
115
766
Total interest income
60,864
62,449
122,235
116,972
Interest Expense: Deposits
3,559
7,435
7,723
15,206
FHLB advances and other
12
516
12
1,523
Subordinated debentures
674
179
1,369
452
Notes Payable
-
15
-
24
Total interest expense
4,245
8,145
9,104
17,205
Net interest income
56,619
54,304
113,131
99,767
Provision (benefit) for credit losses - loans
(3,631
)
1,868
(11,145
)
45,655
Provision (benefit) for credit losses - unfunded commitments
(288
)
1,107
263
2,565
Total provision (benefit) for credit losses
(3,919
)
2,975
(10,882
)
48,220
Net interest income after provision
60,538
51,329
124,013
51,547
Non-interest Income: Service fees and other charges
6,282
5,614
11,751
10,797
Mortgage banking income
2,157
9,868
12,691
10,716
Gain on sale of non-mortgage loans
-
-
-
234
Gain (loss) on sale of available for sale securities
1,469
(2
)
1,985
(2
)
Gain (loss) on trading securities
(808
)
-
802
-
Insurance commissions
4,059
4,005
8,940
9,160
Wealth management income
1,566
1,802
3,322
2,893
Income from Bank Owned Life Insurance
859
838
2,028
1,619
Other non-interest income
1,961
890
2,301
1,597
Total Non-interest Income
17,545
23,015
43,820
37,014
Non-interest Expense: Compensation and benefits
21,046
19,575
43,044
37,160
Occupancy
3,837
4,128
7,949
7,859
FDIC insurance premium
522
411
1,420
903
Financial institutions tax
1,177
1,116
2,367
1,950
Data processing
3,334
3,805
6,716
6,845
Amortization of intangibles
1,575
1,809
3,197
3,054
Acquisition related charges
-
2,099
-
13,585
Other non-interest expense
6,884
5,041
12,485
8,937
Total Non-interest Expense
38,375
37,984
77,178
80,293
Income (loss) before income taxes
39,708
36,360
90,655
8,268
Income tax expense (benefit)
8,323
7,303
18,274
1,693
Net Income (Loss)
$
31,385
$
29,057
$
72,381
$
6,575
Earnings (loss) per common share: Basic
$
0.84
$
0.78
$
1.94
$
0.19
Diluted
$
0.84
$
0.78
$
1.94
$
0.19
Average Shares Outstanding: Basic
37,276
37,290
37,274
34,484
Diluted
37,358
37,323
37,351
34,526
Premier Financial Corp. Financial Summary and
Comparison (Unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
(dollars in thousands, except per share data)
2021
2020
% change
2021
2020
% change
Summary of Operations Tax-equivalent interest income
(2)
$
61,134
$
62,705
(2.5
)
$
122,742
$
117,479
4.5
Interest expense
4,245
8,145
(47.9
)
9,104
17,205
(47.1
)
Tax-equivalent net interest income (2)
56,889
54,560
4.3
113,638
100,274
13.3
Provision (benefit) for credit losses
(3,919
)
2,975
(231.7
)
(10,882
)
48,220
(122.6
)
Core provision (benefit) for credit losses (4)
(3,919
)
2,975
(231.7
)
(10,882
)
22,271
(148.9
)
Investment securities gains (losses)
661
(2
)
NM
2,787
(2
)
NM
Non-interest income (excluding securities gains/losses)
16,884
23,017
(26.6
)
41,033
37,016
10.9
Non-interest expense
38,375
37,984
1.0
77,178
80,293
(3.9
)
Core non-interest expense (4)
38,375
35,885
6.9
77,178
66,708
15.7
Income tax expense (benefit)
8,323
7,303
14.0
18,274
1,693
979.4
Net income (loss)
31,385
29,057
8.0
72,381
6,575
1,000.9
Core net income (4)
31,385
30,715
2.2
72,381
38,185
89.6
Tax equivalent adjustment (2)
270
256
5.5
507
507
-
At Period End Assets
7,593,720
7,013,811
8.3
Earning assets
6,920,008
6,345,655
9.1
Loans
5,348,400
5,457,238
(2.0
)
Allowance for credit losses - loans
71,367
88,555
(19.4
)
Deposits
6,291,459
5,759,843
9.2
Stockholders’ equity
1,027,703
940,968
9.2
Average Balances Assets
7,549,531
7,005,783
7.8
7,444,791
6,185,668
20.4
Earning assets
6,806,275
6,247,037
9.0
6,709,348
5,559,542
20.7
Loans
5,495,782
5,389,805
2.0
5,562,379
4,862,410
14.4
Deposits and interest-bearing liabilities
6,454,731
5,963,127
8.2
6,365,441
5,232,503
21.7
Deposits
6,339,673
5,490,986
15.5
6,265,394
4,872,267
28.6
Stockholders’ equity
1,006,757
932,793
7.9
989,800
858,894
15.2
Stockholders’ equity / assets
13.34
%
13.31
%
0.2
13.30
%
13.89
%
(4.2
)
Per Common Share Data Net Income (Loss) Basic
$
0.84
$
0.78
7.7
$
1.94
$
0.19
921.1
Diluted
0.84
0.78
7.7
1.94
0.19
921.1
Core diluted (4)
0.84
0.82
2.4
1.94
1.11
74.8
Dividends Paid
0.26
0.22
18.2
0.50
0.44
13.6
Market Value: High
$
33.97
$
20.11
68.9
$
35.90
$
31.95
12.4
Low
27.76
12.95
114.4
22.23
11.50
93.3
Close
28.41
17.67
60.8
28.41
17.67
60.8
Common Book Value
27.64
25.23
9.6
27.64
25.23
9.6
Tangible Common Book Value (1)
18.36
15.80
16.2
18.36
15.80
16.2
Shares outstanding, end of period (000s)
37,178
37,296
(0.3
)
37,178
37,296
(0.3
)
Performance Ratios (annualized) Tax-equivalent net interest
margin (2)
3.34
%
3.51
%
(4.8
)
3.39
%
3.63
%
(6.6
)
Return on average assets
1.67
%
1.67
%
(0.2
)
1.96
%
0.21
%
833.6
Core return on average assets (4)
1.67
%
1.76
%
(5.4
)
1.96
%
1.24
%
57.9
Return on average equity
12.50
%
12.53
%
(0.2
)
14.75
%
1.54
%
857.6
Core return on average equity (4)
12.50
%
13.24
%
(5.6
)
14.75
%
8.94
%
64.9
Return on average tangible equity
19.05
%
20.13
%
(5.4
)
22.70
%
2.40
%
844.1
Core return on average tangible equity (4)
19.05
%
21.28
%
(10.5
)
22.70
%
14.00
%
62.1
Efficiency ratio (3)
52.02
%
48.96
%
6.2
49.90
%
58.48
%
(14.7
)
Core efficiency ratio (4)
52.02
%
46.26
%
12.5
49.90
%
48.59
%
2.7
Effective tax rate
20.96
%
20.09
%
4.3
20.16
%
20.48
%
(1.6
)
Dividend payout ratio (core)
30.95
%
26.83
%
15.4
25.77
%
39.64
%
(35.0
)
Note: Year-to-date 2020 results include five months of operations
from UCFC compared to six 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
Six Months Ended
June 30,
June 30,
Mortgage Banking Summary
2021
2020
2021
2020
Revenue from sales and servicing of mortgage loans: Gain from sale
of mortgage loans
$
2,670
$
11,530
$
8,310
$
16,432
Mortgage loan servicing revenue (expense): Mortgage loan servicing
revenue
1,887
1,888
3,805
3,482
Amortization of mortgage servicing rights
(1,953
)
(2,181
)
(4,297
)
(3,344
)
Mortgage servicing rights valuation adjustments
(447
)
(1,369
)
4,873
(5,854
)
(513
)
(1,662
)
4,381
(5,716
)
Total revenue from sale and servicing of mortgage loans
$
2,157
$
9,868
$
12,691
$
10,716
Mortgage servicing rights: Balance at beginning of period
$
21,696
$
20,761
$
21,666
$
10,801
Loans sold, servicing retained
1,938
2,454
4,312
3,830
Mortgage servicing rights acquired
-
-
-
9,747
Amortization
(1,953
)
(2,181
)
(4,297
)
(3,344
)
Carrying value before valuation allowance at end of period
21,681
21,034
21,681
21,034
Valuation allowance: Balance at beginning of period
(3,193
)
(5,019
)
(8,513
)
(534
)
Impairment recovery (charges)
(447
)
(1,369
)
4,873
(5,854
)
Balance at end of period
(3,640
)
(6,388
)
(3,640
)
(6,388
)
Net carrying value at end of period
$
18,041
$
14,646
$
18,041
$
14,646
COVID-19 Deferrals Update
6/30/2021
3/31/2021
12/31/2020
9/30/2020
6/30/2020
3/31/2020
Commercial loan deferrals
$
-
$
32,370
$
46,038
$
434,554
$
739,632
$
47,197
% of commercial loans
0.0
%
0.8
%
1.2
%
11.4
%
19.7
%
1.4
%
% of total loans
0.0
%
0.6
%
0.8
%
7.9
%
13.5
%
0.9
%
Retail loan deferrals
$
13
$
3,414
$
7,412
$
48,187
$
73,266
$
13
% of retail loans
0.0
%
0.2
%
0.4
%
2.9
%
4.3
%
0.0
%
% of total loans
0.0
%
0.1
%
0.1
%
0.9
%
1.3
%
0.0
%
Total loan deferrals
$
13
$
35,784
$
53,450
$
482,741
$
812,898
$
47,210
% of total loans
0.0
%
0.7
%
1.0
%
8.8
%
14.9
%
0.9
%
Commercial Loan Deferral Rollforward 3/31/21Balance
NewDeferrals Payoffs/Changes Return toPay(1) 6/30/21Balance
2Q21Extensions Interest only 1-3 months
$
12,412
$
-
$
(22
)
$
(12,390
)
$
-
$
-
Interest only 4-5 months
74
-
(1
)
(73
)
-
-
Interest only 6 months
19,828
-
(5
)
(19,823
)
-
-
Deferred payment 1-90 days
56
-
(1
)
(55
)
-
-
Deferred payment 91-179 days
-
-
-
-
-
-
Deferred payment 180 days
-
-
-
-
-
-
Total
$
32,370
$
-
$
(29
)
$
(32,341
)
$
-
$
-
Commercial Loan Deferral Expirations Update
6/30/21Balance July
$
-
August
-
September
-
October
-
November
-
December
-
Total
$
-
Note: Year-to-date 2020 results include five months of
operations from UCFC compared to six for comparable periods in 2021
(1) Represents 100% of previously disclosed second quarter 2021
scheduled expirations.
Premier Financial Corp.
Yield Analysis
Three Months Ended June
30,
(dollars in thousands)
2021
2020
Average
Yield
Average
Yield
Balance
Interest(1)
Rate(2)
Balance
Interest(1)
Rate(2)
Interest-earning assets: Loans receivable
$
5,495,782
$
55,786
4.06
%
$
5,389,805
$
58,819
4.39
%
Securities
1,193,363
5,250
1.76
%
523,360
3,156
2.48
%
(3)
Interest Bearing Deposits
106,025
42
0.16
%
260,586
79
0.12
%
FHLB stock
11,105
56
2.02
%
73,286
651
3.57
%
Total interest-earning assets
6,806,275
61,134
3.59
%
6,247,037
62,705
4.04
%
Non-interest-earning assets
743,256
758,746
Total assets
$
7,549,531
$
7,005,783
Deposits and Interest-bearing liabilities: Interest bearing
deposits
$
4,640,196
$
3,559
0.31
%
$
4,144,699
$
7,435
0.72
%
FHLB advances and other
30,165
12
0.16
%
420,784
516
0.49
%
Subordinated debentures
84,893
674
3.18
%
36,083
179
2.00
%
Notes payable
-
-
-
15,274
15
0.39
%
Total interest-bearing liabilities
4,755,254
4,245
0.36
%
4,616,840
8,145
0.71
%
Non-interest bearing deposits
1,699,477
-
-
1,346,287
-
-
Total including non-interest-bearing deposits
6,454,731
4,245
0.26
%
5,963,127
8,145
0.55
%
Other non-interest-bearing liabilities
88,043
109,863
Total liabilities
6,542,774
6,072,990
Stockholders' equity
1,006,757
932,793
Total liabilities and stockholders' equity
$
7,549,531
$
7,005,783
Net interest income; interest rate spread
$
56,889
3.23
%
$
54,560
3.33
%
Net interest margin (4)
3.34
%
3.51
%
Average interest-earning assets to average interest bearing
liabilities
143
%
135
%
Six Months Ended June
30,
2021
2020
Average
Yield
Average
Yield
Balance
Interest(1)
Rate(2)
Balance
Interest(1)
Rate(2)
Interest-earning assets: Loans receivable
$
5,562,379
$
113,366
4.08
%
$
4,862,410
$
110,304
4.55
%
Securities
1,009,695
9,153
1.81
%
482,839
6,100
2.57
%
(3)
Interest Bearing Deposits
125,732
108
0.17
%
164,662
309
0.38
%
FHLB stock
11,542
115
1.99
%
49,631
766
3.10
%
Total interest-earning assets
6,709,348
122,742
3.66
%
5,559,542
117,479
4.24
%
Non-interest-earning assets
735,443
626,126
Total assets
$
7,444,791
$
6,185,668
Deposits and Interest-bearing liabilities: Interest bearing
deposits
$
4,593,493
$
7,723
0.34
%
$
3,750,226
$
15,206
0.81
%
FHLB advances and other
15,166
12
0.16
%
315,337
1,523
0.97
%
Subordinated debentures
84,881
1,369
3.23
%
36,083
452
2.51
%
Notes payable
-
-
-
8,816
24
0.55
%
Total interest-bearing liabilities
4,693,540
9,104
0.39
%
4,110,462
17,205
0.84
%
Non-interest bearing deposits
1,671,901
-
-
1,122,041
-
-
Total including non-interest-bearing deposits
6,365,441
9,104
0.29
%
5,232,503
17,205
0.66
%
Other non-interest-bearing liabilities
89,550
94,271
Total liabilities
6,454,991
5,326,774
Stockholders' equity
989,800
858,894
Total liabilities and stockholders' equity
$
7,444,791
$
6,185,668
Net interest income; interest rate spread
$
113,638
3.27
%
$
100,274
3.40
%
Net interest margin (4)
3.39
%
3.63
%
Average interest-earning assets to average interest bearing
liabilities
143
%
135
%
Note: Year-to-date 2020 results include five months of operations
from UCFC compared to six 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)
2nd Qtr 2021 1st Qtr 2021 4th Qtr 2020 3rd Qtr 2020
2nd Qtr 2020
Summary of Operations Tax-equivalent interest
income (1)
$
61,134
$
61,609
$
61,067
$
60,418
$
62,705
Interest expense
4,245
4,859
5,849
6,888
8,145
Tax-equivalent net interest income (1)
56,889
56,750
55,218
53,530
54,560
Provision (benefit) for credit losses
(3,919
)
(6,963
)
(6,764
)
2,794
2,975
Core provision (benefit) for credit losses (3)
(3,919
)
(6,963
)
(6,764
)
2,794
2,975
Investment securities gains (losses)
661
2,126
76
1,480
(2
)
Non-interest income (excluding securities gains/losses)
16,884
24,149
18,594
23,520
23,017
Non-interest expense
38,375
38,803
41,313
43,563
37,984
Core non-interest expense (3)
38,375
38,803
39,123
38,445
35,885
Income tax expense (benefit)
8,323
9,952
8,240
6,259
7,303
Net income (loss)
31,385
40,996
30,848
25,655
29,057
Core net income (3)
31,385
40,996
32,577
28,587
30,715
Tax equivalent adjustment (1)
270
237
251
259
256
At Period End Total assets
$
7,593,720
$
7,530,462
$
7,211,734
$
6,974,953
$
7,013,811
Earning assets
6,920,008
6,852,357
6,546,299
6,340,132
6,345,655
Loans
5,348,400
5,459,683
5,491,240
5,470,548
5,457,238
Allowance for loan losses
71,367
74,754
82,079
88,917
88,555
Deposits
6,291,459
6,351,919
6,047,841
5,795,757
5,759,843
Stockholders’ equity
1,027,703
998,186
982,276
959,025
940,968
Stockholders’ equity / assets
13.53
%
13.26
%
13.62
%
13.75
%
13.42
%
Goodwill
317,948
317,948
317,948
317,948
317,948
Average Balances Total assets
$
7,549,531
$
7,338,886
$
7,089,060
$
6,935,783
$
7,005,783
Earning assets
6,806,275
6,611,343
6,363,306
6,211,267
6,247,037
Loans
5,495,782
5,629,715
5,609,116
5,555,621
5,389,805
Deposits and interest-bearing liabilities
6,454,731
6,275,160
6,044,049
5,901,652
5,963,127
Deposits
6,339,673
6,190,292
5,956,550
5,738,006
5,490,986
Stockholders’ equity
1,006,757
972,653
946,223
927,506
932,793
Stockholders’ equity / assets
13.34
%
13.25
%
13.35
%
13.37
%
13.31
%
Per Common Share Data Net Income (Loss): Basic
$
0.84
$
1.10
$
0.83
$
0.69
$
0.78
Diluted
0.84
1.10
0.82
0.69
0.78
Core diluted (3)
0.84
1.10
0.87
0.77
0.82
Dividends Paid
0.26
0.24
0.22
0.22
0.22
Market Value: High
$
33.97
$
35.90
$
23.49
$
21.24
$
20.11
Low
27.76
22.23
14.90
14.74
12.95
Close
28.41
33.26
23.00
15.58
17.67
Common Book Value
27.64
26.78
26.34
25.71
25.23
Shares outstanding, end of period (000s)
37,178
37,275
37,291
37,297
37,296
Performance Ratios (annualized) Tax-equivalent net interest
margin (1)
3.34
%
3.43
%
3.47
%
3.47
%
3.51
%
Return on average assets
1.67
%
2.27
%
1.73
%
1.49
%
1.67
%
Core return on average assets (3)
1.67
%
2.27
%
1.83
%
1.64
%
1.76
%
Return on average equity
12.50
%
17.09
%
12.97
%
11.12
%
12.53
%
Core return on average equity (3)
12.50
%
17.09
%
13.70
%
12.26
%
13.24
%
Return on average tangible equity
19.05
%
26.60
%
20.37
%
17.71
%
20.13
%
Core return on average tangible equity (3)
19.05
%
26.60
%
21.51
%
19.73
%
21.28
%
Efficiency ratio (2)
52.02
%
47.96
%
55.97
%
56.54
%
48.96
%
Core efficiency ratio (3)
52.02
%
47.96
%
53.00
%
49.90
%
46.26
%
Effective tax rate
20.96
%
19.53
%
21.08
%
19.61
%
20.09
%
Common dividend payout ratio (core)
30.95
%
21.82
%
25.29
%
28.57
%
26.83
%
(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)
2nd Qtr 2021
1st Qtr 2021
4th Qtr 2020
3rd Qtr 2020
2nd Qtr 2020
Loan Portfolio Composition One to four family residential
real estate
$
1,138,433
$
1,168,559
$
1,201,051
$
1,194,940
$
1,226,106
Construction
830,822
749,190
667,649
580,060
509,548
Commercial real estate
2,405,653
2,402,067
2,383,001
2,328,944
2,266,189
Commercial
1,051,972
1,172,910
1,202,353
1,263,565
1,244,549
Consumer finance
118,526
117,539
120,729
128,995
146,139
Home equity and improvement
261,842
257,764
272,701
281,010
290,459
Total loans
5,807,248
5,868,029
5,847,484
5,777,514
5,682,990
Less: Undisbursed loan funds
458,156
405,983
355,065
300,174
221,137
Deferred loan origination fees
692
2,363
1,179
6,792
4,615
Allowance for credit losses - loans
71,367
74,754
82,079
88,917
88,555
Net Loans
$
5,277,033
$
5,384,929
$
5,409,161
$
5,381,631
$
5,368,683
Allowance for credit losses - loans Beginning
allowance
$
74,754
$
82,079
$
88,917
$
88,555
$
85,859
CECL adoption
-
-
-
-
-
Acquisition related allowance/provision (non PCD)
-
-
-
-
-
Acquisition related allowance/goodwill (PCD)
-
-
-
-
-
Provision (benefit) for credit losses - loans
(3,631
)
(7,514
)
(6,158
)
3,658
1,868
Net recoveries (charge-offs)
244
189
(680
)
(3,296
)
828
Ending allowance
$
71,367
$
74,754
$
82,079
$
88,917
$
88,555
Credit Quality Total non-performing loans (1)
$
41,296
$
49,298
$
51,983
$
48,360
$
39,470
Real estate owned (REO)
45
53
343
521
573
Total non-performing assets (2)
$
41,341
$
49,351
$
52,326
$
48,881
$
40,043
Net charge-offs (recoveries)
(244
)
(189
)
680
3,296
(828
)
Restructured loans, accruing (3)
5,939
6,068
7,173
8,499
7,916
Allowance for credit losses - loans / loans
1.33
%
1.37
%
1.49
%
1.63
%
1.62
%
Allowance for credit losses - loans / non-performing assets
172.63
%
151.47
%
156.86
%
182.05
%
221.15
%
Allowance for credit losses - loans / non-performing loans
172.82
%
151.64
%
157.90
%
184.01
%
224.36
%
Non-performing assets / loans plus REO
0.77
%
0.90
%
0.95
%
0.89
%
0.73
%
Non-performing assets / total assets
0.54
%
0.66
%
0.73
%
0.70
%
0.57
%
Net charge-offs / average loans (annualized)
-0.02
%
-0.01
%
0.05
%
0.24
%
-0.06
%
Deposit Balances Non-interest-bearing demand deposits
$
1,649,664
$
1,728,895
$
1,597,262
$
1,436,807
$
1,454,842
Interest-bearing demand deposits and money market
2,890,769
2,806,271
2,627,669
2,511,263
2,361,486
Savings deposits
777,862
761,899
700,480
674,354
671,650
Retail time deposits less than $250,000
720,317
842,624
912,006
975,658
1,078,758
Retail time deposits greater than $250,000
252,847
212,230
210,424
197,675
193,107
Total deposits
$
6,291,459
$
6,351,919
$
6,047,841
$
5,795,757
$
5,759,843
(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 dayspast due
% ofTotal Non AccrualLoans % ofTotal
June 30, 2021 One to four family residential real estate
$ 1,138,433
$ 1,122,060
$ 5,757
0.5%
$ 10,616
0.9%
Construction
830,822
830,242
580
0.1%
-
0.0%
Commercial real estate
2,405,653
2,388,082
53
0.0%
17,518
0.7%
Commercial
1,051,972
1,044,265
-
0.0%
7,707
0.7%
Consumer finance
118,526
115,169
1,530
1.3%
1,827
1.5%
Home equity and improvement
261,842
256,259
1,955
0.7%
3,628
1.4%
Total loans
$ 5,807,248
$ 5,756,077
$ 9,875
0.2%
$ 41,296
0.7%
March 31, 2021 One to four family residential real estate
$ 1,168,559
$ 1,150,194
$ 5,622
0.5%
$ 12,743
1.1%
Construction
749,190
748,362
584
0.1%
244
0.0%
Commercial real estate
2,402,067
2,379,138
222
0.0%
22,707
0.9%
Commercial
1,172,910
1,164,587
298
0.0%
8,025
0.7%
Consumer finance
117,539
114,214
1,424
1.2%
1,901
1.6%
Home equity and improvement
257,764
252,732
1,354
0.5%
3,678
1.4%
Total loans
$ 5,868,029
$ 5,809,227
$ 9,504
0.2%
$ 49,298
0.8%
June 30, 2020 One to four family residential real estate
$ 1,226,106
$ 1,213,482
$ 6,056
0.5%
$ 6,568
0.5%
Construction
509,548
509,548
-
0.0%
-
0.0%
Commercial real estate
2,266,189
2,244,412
1,040
0.0%
20,737
0.9%
Commercial
1,244,549
1,233,703
680
0.1%
10,166
0.8%
Consumer finance
146,139
144,555
988
0.7%
596
0.4%
Home equity and improvement
290,459
285,858
2,237
0.8%
2,364
0.8%
Total loans
$ 5,682,990
$ 5,631,558
$ 11,001
0.2%
$ 40,431
0.7%
Loan Risk Ratings Information (dollars in thousands)
Total Balance Pass Rated Special Mention
%of Total Classified %of Total June 30,
2021 One to four family residential real estate
$ 1,125,097
$ 1,114,219
$ 1,117
0.1%
$ 9,761
0.9%
Construction
830,822
815,429
15,393
1.9%
-
0.0%
Commercial real estate
2,393,591
2,217,858
132,099
5.5%
43,634
1.8%
Commercial
1,038,059
991,021
24,898
2.4%
22,140
2.1%
Consumer finance
117,764
116,137
-
0.0%
1,627
1.4%
Home equity and improvement
257,618
255,497
-
0.0%
2,121
0.8%
PCD loans
44,297
21,328
905
2.0%
22,064
49.8%
Total loans
$ 5,807,248
$ 5,531,489
$ 174,412
3.0%
$ 101,347
1.7%
March 31, 2021 One to four family residential real estate
$ 1,154,141
$ 1,145,356
$ 1,173
0.1%
$ 7,612
0.7%
Construction
749,190
727,821
21,126
2.8%
243
0.0%
Commercial real estate
2,380,688
2,216,699
115,758
4.9%
48,231
2.0%
Commercial
1,156,948
1,108,381
25,400
2.2%
23,167
2.0%
Consumer finance
116,723
115,044
-
0.0%
1,679
1.4%
Home equity and improvement
253,049
250,944
-
0.0%
2,105
0.8%
PCD loans
57,290
23,956
1,748
3.1%
31,586
55.1%
Total loans
$ 5,868,029
$ 5,588,201
$ 165,205
2.8%
$ 114,623
2.0%
June 30, 2020 One to four family residential real estate
$ 1,212,490
$ 1,206,062
$ 304
0.0%
$ 6,124
0.5%
Construction
287,239
287,174
65
0.0%
-
0.0%
Commercial real estate
2,231,602
2,191,433
21,436
1.0%
18,733
0.8%
Commercial
1,223,580
1,193,020
23,979
2.0%
6,581
0.5%
Consumer finance
136,765
136,449
-
0.0%
316
0.2%
Home equity and improvement
284,923
284,188
-
0.0%
735
0.3%
PCD loans
80,639
21,817
13,985
17.3%
44,837
55.6%
Total loans
$ 5,457,238
$ 5,320,143
$ 59,769
1.1%
$ 77,326
1.4%
Premier Financial Corp. Non-GAAP
Reconciliations
Six months ended
(In thousands, except per share and ratio data)
6/30/21
6/30/20
2nd Qtr 2021
1st Qtr 2021
4th Qtr 2020
3rd Qtr 2020
2nd Qtr 2020
Acquisition related charges (pre-tax)
$
-
$
13,585
$
-
$
-
$
2,190
$
3,711
$
2,099
Less: Tax benefit of acquisition related charges
-
2,475
-
-
460
779
441
Acquisition related charges (after-tax)
$
-
$
11,110
$
-
$
-
$
1,730
$
2,932
$
1,658
Total non-interest expenses
$
77,178
$
80,293
$
38,375
$
38,803
$
41,313
$
43,563
$
37,984
Less: Acquisition related charges (pre-tax)
-
13,585
-
-
2,190
3,711
2,099
Less: FHLB prepayment charges(1)
-
-
-
-
-
1,407
-
Core non-interest expenses
$
77,178
$
66,708
$
38,375
$
38,803
$
39,123
$
38,445
$
35,885
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
$
(10,882
)
$
48,220
$
(3,919
)
$
(6,963
)
$
(6,764
)
$
2,794
$
2,975
Less: Acquisition related provision (pre-tax)
-
25,949
-
-
-
-
-
Core provision (benefit) for credit losses
$
(10,882
)
$
22,271
$
(3,919
)
$
(6,963
)
$
(6,764
)
$
2,794
$
2,975
Non-interest income
$
43,820
$
37,014
$
17,545
$
26,275
$
18,669
$
25,000
$
23,015
Less: Securities gains (losses)
2,787
(2
)
661
2,126
76
1,480
(2
)
Non-interest income (excluding securities gains/losses)
$
41,033
$
37,016
$
16,884
$
24,149
$
18,593
$
23,520
$
23,017
Tax-equivalent net interest income
$
113,638
$
100,274
$
56,889
$
56,750
$
55,218
$
53,530
$
54,560
Non-interest income (excluding securities gains/losses)
41,033
37,016
16,884
24,149
18,593
23,520
23,017
Total revenues
154,671
137,290
73,773
80,899
73,811
77,050
77,577
Core non-interest expenses
$
77,178
$
66,708
$
38,375
$
38,803
$
39,123
$
38,445
$
35,885
Core efficiency ratio
49.90
%
48.59
%
52.02
%
47.96
%
53.00
%
49.90
%
46.26
%
Income (loss) before income taxes
$
90,655
$
8,268
$
39,708
$
50,948
$
39,087
$
31,914
$
36,360
Add: Provision (benefit) for credit losses
(10,882
)
48,220
(3,919
)
(6,963
)
(6,764
)
2,794
2,975
Pre-tax pre-provision income
79,773
56,488
35,789
43,985
32,323
34,708
39,335
Add: Acquisition related charges (pre-tax)
-
13,585
-
-
2,190
3,711
2,099
Core pre-tax pre-provision income
$
79,773
$
70,073
$
35,789
$
43,985
$
34,513
$
38,419
$
41,434
Average total assets
$
7,444,791
$
6,185,668
$
7,549,531
$
7,338,886
$
7,089,060
$
6,935,783
$
7,005,783
Core pre-tax pre-provision return on average assets
2.16
%
2.28
%
1.90
%
2.43
%
1.94
%
2.20
%
2.38
%
Net income (loss)
$
72,381
$
6,575
$
31,385
$
40,996
$
30,847
$
25,655
$
29,057
Add: Acquisition related provision (after-tax)
-
20,500
-
-
-
-
-
Add: Acquisition related charges (after-tax)
-
11,110
-
-
1,730
2,932
1,658
Core net income
$
72,381
$
38,185
$
31,385
$
40,996
$
32,577
$
28,587
$
30,715
Diluted shares - Reported
37,351
34,526
37,358
37,357
37,350
37,334
37,324
Add: Dilutive shares for core net income
-
-
-
-
-
-
-
Diluted shares - Core
37,351
34,526
37,358
37,357
37,350
37,334
37,324
Core diluted EPS
$
1.94
$
1.11
$
0.84
$
1.10
$
0.87
$
0.77
$
0.82
Average total assets
$
7,444,791
$
6,185,668
$
7,549,531
$
7,338,886
$
7,089,060
$
6,935,783
$
7,005,783
Core return on average assets
1.96
%
1.24
%
1.67
%
2.27
%
1.83
%
1.64
%
1.76
%
Average total equity
$
989,800
$
858,894
$
1,006,757
$
972,653
$
946,223
$
927,506
$
932,793
Core return on average equity
14.75
%
8.94
%
12.50
%
17.09
%
13.70
%
12.26
%
13.24
%
Average total tangible equity
$
642,990
$
548,430
$
660,785
$
624,996
$
602,495
$
576,457
$
580,449
Core return on average tangible equity
22.70
%
14.00
%
19.05
%
26.60
%
21.51
%
19.73
%
21.28
%
Note: Year-to-date results include six months of operations from
UCFC compared to five 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/20210729006149/en/
Paul Nungester EVP and CFO 419.785.8700
PNungester@yourpremierbank.com
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