Premier Financial Corp. Announces Record Quarterly Results and Dividend Increase

First Quarter 2021 Highlights

  • Declared dividend increase of $0.02 to $0.26 per share, up 18% from 2020 first quarter
  • Net income of $41.0 million, up from a loss of $22.5 million, or income of $7.5 million excluding merger-related provision and expenses, for 2020 first quarter
  • Earnings per share of $1.10, up from ($0.71), or $0.24 excluding merger-related provision and expenses, for 2020 first quarter
  • Allowance to Loans ratio of 1.37%, or 1.49% excluding PPP loans
  • Average interest earnings assets growth of $248.0 million, or 15.6% annualized growth, for 2021 first quarter
  • Average deposit growth of $233.7 million, or 15.7% annualized growth, for 2021 first quarter
  • Mortgage banking income of $10.5 million, up from $0.8 million for 2020 first quarter
  • Pre-tax pre-provision ROAA of 2.43%, compared to 1.29%, or 2.15% excluding merger-related expenses, for 2020 first quarter
  • Efficiency ratio of 48.0%, compared to 70.9%, or 51.6% excluding merger-related expenses, for 2020 first quarter
  • ROE and ROTE of 17.09% and 26.60% for 2021 first quarter

DEFIANCE, Ohio--()--Premier Financial Corp. (Nasdaq: PFC) (“Premier” or the “Company”) announced today 2021 first quarter results including solid core profitability. Net income for the first quarter of 2021 was $41.0 million, or $1.10 per diluted common share, compared to a net loss of $22.5 million, or $0.71 per diluted common share, for the first quarter of 2020. The year-over-year comparison is impacted by the acquisition of United Community Financial Corp. (“UCFC”) on January 31, 2020, with 2020 first quarter results including two months of operations from UCFC compared to three in first quarter of 2021. The prior year’s results include the impact of $11.5 million of acquisition-related charges for the three months ended March 31, 2020, which had an after-tax cost of $9.5 million or $0.30 per diluted common share. Additionally, the prior year’s provision expense of $45.2 million included $25.9 million related to acquisition accounting for an after-tax cost of $20.5 million, or $0.65 per diluted common share. The first quarter of 2021 included a provision credit of $7.0 million and no acquisition impact. Excluding the impact of the acquisition-related provision and charges, earnings for the three months ended March 31, 2020, were $7.5 million, or $0.24 per diluted common share.

“We are very pleased to deliver an excellent start for 2021,” said Gary M. Small, CEO of Premier. “While the banking industry is currently facing challenges in terms of the low interest rate environment and modest loan demand, Premier’s business mix continues to provide opportunities to perform and our team is taking full advantage. Our disciplined approach to credit and the continued outstanding performance from fee income businesses allowed us to move confidently with a meaningful 18% dividend increase year to date, consistent with our expectations for sustainably strong performance going forward.”

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 $10.2 million as loan interest income, including $4.0 million during the three months ended March 31, 2021. Additionally, a total of $171.2 million in loans have been extinguished to date, including $114.8 million during the three months ended March 31, 2021.

Beginning in January 2021, Premier Bank participated in the second round of PPP lending and made 1,645 loans for a total of $171.7 million during the three months ended March 31, 2021. Total gross fees for these loans were $6.7 million and Premier Bank recognized $0.2 million in loan interest income during the three months ended March 31, 2021.

Net interest income up compared to first quarter of 2020

Net interest income of $56.5 million in the first quarter of 2021 was up from $45.5 million in the first quarter of 2020. The increase over the prior year’s first quarter was attributable to organic growth and three months of income from UCFC compared to two months in 2020. Net interest margin was 3.43% for the first quarter of 2021, down from 3.47% in the fourth quarter of 2020, and down from 3.78% in the first quarter of 2020. Yield on interest earning assets decreased to 3.73% in the first quarter of 2021, down 11 basis points from 3.84% in the fourth quarter of 2020. Total cost of funds decreased 8 basis points in the first quarter of 2021 to 0.31% from 0.39% in the fourth quarter of 2020 while the total cost of interest-bearing liabilities decreased 10 basis points to 0.42% from 0.52%. The 2021 first 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 $0.4 million of accretion, which combined added 10 basis points of net interest margin. The first quarter results also include the impact of PPP loans. Interest income includes $5.0 million on average balances of $435.4 million, which increased net interest margin by 8 basis points. Excluding the impact of acquisition marks and PPP loans, net interest margin would be 3.25% for the first quarter of 2021 compared to 3.36% for the fourth quarter of 2020 and 3.68% for the first quarter of 2020.

“We produced net interest income growth despite margin compression for the quarter,” said Small. “The success of the multiple COVID related economic programs enacted over the past year has driven tremendous liquidity and deposit growth to the benefit of all our clients. Reinvesting these funds in a prudent manner recognizing the volatility of these deposits over time has never been more critical. We remain focused on continued reduction of our funding costs while optimizing our reinvestment yield for the appropriate time horizon.”

Non-interest income up from first quarter of 2020

Premier’s non-interest income in the first quarter of 2021 was $26.3 million compared with $14.0 million in the first quarter of 2020. Results for the first quarter of 2021 included three months of income from UCFC compared to two months in 2020.

Mortgage banking income increased to $10.5 million in the first quarter of 2021 from $0.8 million in the first quarter of 2020. Gains from the sale of mortgage loans increased to $5.6 million in the first quarter of 2021 from $4.9 million in the first quarter of 2020. Mortgage loan servicing revenue increased to $1.9 million in the first quarter of 2021 from $1.6 million in the first quarter of 2020. Amortization of mortgage servicing rights increased to $2.3 million in the first quarter of 2021 from $1.2 million in the first quarter of 2020. Premier had a positive change in the valuation adjustment in mortgage servicing assets of $5.3 million in the first quarter of 2021 compared with a negative adjustment of $4.5 million in the first quarter of 2020 with the year-over-year change primarily due to rates. In the first quarter of 2020, the rate on the 10 Year Treasury declined to 0.70% as a result of the pandemic and economic recession thus negatively impacting prepay speeds and the MSR valuation. In the first quarter of 2021, the rate on the 10 Year Treasury increased to 1.74% due to improving economic conditions and the vaccine rollout which resulted in slowing prepay speeds and the positive valuation adjustment.

For the first quarter of 2021, service fees and other charges were $5.5 million, up from $5.3 million in the first quarter of 2020. Commissions from the sale of insurance products were $4.9 million, down from $5.2 million in the first quarter of 2020. The first quarter typically includes contingent revenues, bonuses paid by insurance carriers when the Company achieves certain loss ratios or growth targets. In the first quarter of 2021, Premier’s insurance subsidiary, First Insurance Group, earned $1.1 million of contingent income, compared to $1.3 million during the first quarter of 2020. Wealth management income was $1.8 million in the first quarter of 2021, up from $1.1 million in the first quarter of 2020. Securities gains were $2.1 million in the first quarter of 2021 compared to none in the first quarter of 2020. Approximately $0.5 million of the gain was related to the sale of $24 million of mortgage-backed securities where the Company took advantage of Fed pricing to realize a gain and was reinvested in a mix of new securities that will generate the same income over the next three years. The other $1.6 million related to unrealized gains on our trading securities due to the improved market for these financial institution equities. BOLI income increased to $1.2 million in the first quarter of 2021, including $0.3 million of death benefits, compared to $0.8 million in the first quarter of 2020 and no death benefits. Other non-interest income for the first quarter of 2021 was $0.3 million compared to $0.6 million in 2020, which included $1.1 million for the reversal of an earn-out accrual that was not achieved related to a prior acquisition.

“The advantages of our diversified revenue sources was on display again this quarter,” said Small. “Benefits from mortgage and security gains added to solid contributions from insurance, wealth and service fees to drive outperformance on non-interest income and overall bottom-line results.”

Core non-interest expenses up from first quarter of 2020

Total non-interest expense was $38.8 million in the first quarter of 2021, down from $42.3 million in the first quarter of 2020, or up from $30.8 million excluding $11.5 million of acquisition related charges. Results for the first quarter of 2021 included three months of expenses from UCFC compared to two months in 2020. Compensation and benefits increased to $22.0 million in the first quarter of 2021, compared to $17.6 million in the first quarter of 2020. Occupancy expense was $4.1 million in the first quarter of 2021, up from $3.7 million in the first quarter of 2020. Data processing cost was $3.4 million in the first quarter of 2021, up from $3.0 million in the first quarter of 2020. Amortization of intangibles was $1.6 million in the first quarter of 2021, up from $1.2 million in the first quarter of 2020. Other non-interest expense was $5.6 million in the first quarter of 2021, up from $3.9 million in the first quarter of 2020.

FDIC insurance premiums were a $0.9 million expense in the first quarter of 2021, up from a $0.5 million expense in the first quarter of 2020. The increase in expense from prior year is largely due to the increased size of Premier Bank post-merger and the impact of PPP. Although PPP loan balances are excludable from the asset-based component, they are not excludable from the leverage ratio component because the Company did not borrow from the PPP Liquidity Facility and any loan funds that were in deposits would also increase the asset-based component.

Credit quality

Non-performing assets totaled $49.4 million at March 31, 2021, a decrease from $52.3 million at December 31, 2020, and an increase from $33.2 million at March 31, 2020. Accruing troubled debt restructured loans were $6.1 million at March 31, 2021, compared with $7.5 million at March 31, 2020. Loan delinquencies decreased to $9.5 million at March 31, 2021, from $18.5 million at December 31, 2020, and $10.6 million at March 31, 2020.

The 2021 first quarter results include net loan recoveries of $0.2 million and a total provision credit of $7.0 million compared with net loan recoveries of $0.8 million and a total provision expense of $45.2 million, or $19.3 million excluding acquisition-related provision, for the same period in 2020. The allowance for credit losses on loans as a percentage of total loans was 1.37% at March 31, 2021, or 1.49% excluding PPP loans, compared with 1.49% at December 31, 2020, or 1.61% excluding PPP loans, and 1.68% at March 31, 2020. The year-over-year decrease in the provision expense and allowance percentage is primarily attributable to the impact of the economic deterioration that began in the first quarter of 2020 as a result of the COVID-19 pandemic but has subsequently improved. As of March 31, 2021, Premier Bank had pandemic-related deferrals for $32.4 million of commercial loans, down from $46.0 million at December 31, 2020, and $3.4 million of retail loans, down from $7.4 million at December 31, 2020.

“The continuing improvements to economic forecasts allowed us to further reduce allowance levels this quarter,” said Paul D. Nungester, CFO of Premier. “We are comfortable with an allowance level of 1.69% excluding PPP loans and including unamortized purchase accounting marks with net loan recoveries in the quarter despite some risk migration in the portfolio.”

Total assets at $7.53 billion

Total assets at March 31, 2021, were $7.53 billion compared to $7.21 billion at December 31, 2020, and $6.54 billion at March 31, 2020. Gross loans receivable (including loans held for sale) were $5.68 billion at March 31, 2021, compared to $5.71 billion at December 31, 2020, and $5.20 billion at March 31, 2020. At March 31, 2021, gross loans receivable grew $476.0 million organically, or 9.2% from a year ago, including $443.8 million of PPP loans. Commercial loans excluding PPP increased $74.0 million from March 31, 2020 to 2021, despite a $157.0 million decrease in lines of credit. Securities at March 31, 2021, were $932.3 million compared to $737.7 million at December 31, 2020, and $534.2 million at March 31, 2020. Also, at March 31, 2021, goodwill and other intangible assets totaled $346.7 million compared to $348.3 million at December 31, 2020, and $353.1 million at March 31, 2020, with the decrease attributable to intangibles amortization.

Total deposits at March 31, 2021, were $6.35 billion compared with $6.05 billion at December 31, 2020, and $4.99 billion at March 31, 2020. At March 31, 2021, total deposits grew $1.36 billion organically, or 27.2% from a year ago.

Total stockholders’ equity was $998.2 million at March 31, 2021, compared to $982.3 million at December 31, 2020, and $916.8 million at March 31, 2020. The increase in stockholders’ equity from the prior year was due to net earnings, offset partially by the Company’s repurchase of 39,200 common shares for $1.1 million during the first quarter of 2021. At March 31, 2021, 1,960,800 common shares remained available for repurchase under the Company’s existing authorization.

Dividend to be paid May 14

The Board of Directors declared a quarterly cash dividend of $0.26 per common share, an increase of $0.02 per common share, payable May 14, 2021, to shareholders of record at the close of business on May 7, 2021. The dividend represents an annual dividend of 3.14 percent based on the Premier common stock closing price on April 19, 2021. Premier has approximately 37,304,000 common shares outstanding.

Conference call

Premier will host a conference call at 11:00 a.m. ET on Wednesday, April 21, 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/pfc210421.html. The replay of the conference call will be available at www.PremierFinCorp.com until April 21, 2022, at 9:00 a.m. ET.

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 news release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21 B of the Securities Exchange Act of 1934, as amended. Those statements may include, but are not limited to, all statements regarding intent, beliefs, expectations, projections, forecasts and plans of Premier Financial Corp. and its management, and specifically include statements regarding: changes in economic conditions; the nature, extent and timing of governmental actions and reforms; future movements of interest rates; the ability to benefit from a changing interest rate environment; the production levels of mortgage loan generation; the ability to continue to grow loans and deposits; the ability to sustain credit quality ratios at current or improved levels; continued strength in the market area for Premier Bank; the ability to sell real estate owned properties; and the ability to grow in existing and adjacent markets. These forward-looking statements involve numerous risks and uncertainties, including: impacts from the novel coronavirus (COVID-19) pandemic on our business, operations, customers and capital position; higher default rates on loans made to our customers related to COVID-19 and its impact on our customers’ operations and financial condition; the impact of COVID-19 on local, national and global economic conditions; unexpected changes in interest rates or disruptions in the mortgage market related to COVID-19 or responses to the health crisis; the effects of various governmental responses to the COVID-19 pandemic; those inherent in general and local banking, insurance and mortgage conditions; competitive factors specific to markets in which Premier Financial Corp. and its subsidiaries operate; future interest rate levels; legislative and regulatory decisions or capital market conditions; and other risks and uncertainties detailed from time to time in our Securities and Exchange Commission (SEC) filings, including in our Annual Report on Form 10-K for the year ended December 31, 2020. One or more of these factors have affected or could in the future affect Premier’s business and financial results in future periods and could cause actual results to differ materially from plans and projections. Therefore, there can be no assurances that the forward-looking statements included in this news release will prove to be accurate. In light of the significant uncertainties in the forward-looking statements included herein, 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. All forward-looking statements made in this news release 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 March 31, 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.
 

March 31,

December 31,

(in thousands)

2021

2020

 
Assets
Cash and cash equivalents
Cash and amounts due from depository institutions

$

68,689

 

$

79,593

 

Interest-bearing deposits

 

235,058

 

 

79,673

 

 

303,747

 

 

159,266

 

 
Available-for sale, carried at fair value

 

918,590

 

 

736,654

 

Trading securities, carried at fair value

 

13,753

 

 

1,090

 

Securities investments

 

932,343

 

 

737,744

 

 
Loans

 

5,459,683

 

 

5,491,240

 

Allowance for credit losses - loans

 

(74,754

)

 

(82,079

)

Loans, net

 

5,384,929

 

 

5,409,161

 

Loans held for sale

 

215,945

 

 

221,616

 

Mortgage servicing rights

 

18,503

 

 

13,153

 

Accrued interest receivable

 

24,355

 

 

25,434

 

Federal Home Loan Bank stock

 

9,328

 

 

16,026

 

Bank Owned Life Insurance

 

145,060

 

 

144,784

 

Office properties and equipment

 

57,358

 

 

58,665

 

Real estate and other assets held for sale

 

54

 

 

343

 

Goodwill

 

317,948

 

 

317,948

 

Core deposit and other intangibles

 

28,714

 

 

30,337

 

Other assets

 

92,178

 

 

77,257

 

Total Assets

$

7,530,462

 

$

7,211,734

 

 
Liabilities and Stockholders’ Equity
Non-interest-bearing deposits

$

1,728,895

 

$

1,597,262

 

Interest-bearing deposits

 

4,623,024

 

 

4,450,579

 

Total deposits

 

6,351,919

 

 

6,047,841

 

Advances from FHLB and PPPLF

 

-

 

 

-

 

Notes payable and other interest-bearing liabilities

 

-

 

 

-

 

Subordinated debentures

 

84,881

 

 

84,860

 

Advance payments by borrowers for tax and insurance

 

20,773

 

 

21,748

 

Reserve for credit losses - unfunded commitments

 

5,901

 

 

5,350

 

Other liabilities

 

68,802

 

 

69,659

 

Total Liabilities

 

6,532,276

 

 

6,229,458

 

Stockholders’ Equity
Preferred stock

 

-

 

 

-

 

Common stock, net

 

306

 

 

306

 

Additional paid-in-capital

 

689,747

 

 

689,390

 

Accumulated other comprehensive income (loss)

 

(502

)

 

15,004

 

Retained earnings

 

388,467

 

 

356,414

 

Treasury stock, at cost

 

(79,832

)

 

(78,838

)

Total stockholders’ equity

 

998,186

 

 

982,276

 

Total Liabilities and Stockholders’ Equity

$

7,530,462

 

$

7,211,734

 

Consolidated Statements of Income (Unaudited)
Premier Financial Corp.
Three Months Ended
March 31,
(in thousands, except per share amounts)

 

2021

 

 

2020

 

Interest Income:
Loans

$

57,565

 

$

51,460

 

Investment securities

 

3,682

 

 

2,717

 

Interest-bearing deposits

 

66

 

 

230

 

FHLB stock dividends

 

59

 

 

115

 

Total interest income

 

61,372

 

 

54,522

 

Interest Expense:
Deposits

 

4,164

 

 

7,771

 

FHLB advances and other

 

-

 

 

1,006

 

Subordinated debentures

 

695

 

 

273

 

Notes Payable

 

-

 

 

9

 

Total interest expense

 

4,859

 

 

9,059

 

Net interest income

 

56,513

 

 

45,463

 

Provision (benefit) for credit losses - loans

 

(7,514

)

 

43,786

 

Provision (benefit) for credit losses - unfunded commitments

 

551

 

 

1,458

 

Total provision (benefit) for credit losses

 

(6,963

)

 

45,244

 

Net interest income after provision

 

63,476

 

 

219

 

Non-interest Income:
Service fees and other charges

 

5,469

 

 

5,318

 

Mortgage banking income

 

10,533

 

 

848

 

Gain on sale of non-mortgage loans

 

-

 

 

234

 

Gain (loss) on sale of available for sale securities

 

516

 

 

-

 

Gain (loss) on trading securities

 

1,610

 

 

-

 

Insurance commissions

 

4,882

 

 

5,155

 

Wealth management income

 

1,757

 

 

1,091

 

Income from Bank Owned Life Insurance

 

1,168

 

 

781

 

Other non-interest income

 

340

 

 

572

 

Total Non-interest Income

 

26,275

 

 

13,999

 

Non-interest Expense:
Compensation and benefits

 

21,997

 

 

17,585

 

Occupancy

 

4,112

 

 

3,731

 

FDIC insurance premium

 

898

 

 

492

 

Financial institutions tax

 

1,190

 

 

834

 

Data processing

 

3,382

 

 

3,040

 

Amortization of intangibles

 

1,623

 

 

1,245

 

Acquisition related charges

 

-

 

 

11,486

 

Other non-interest expense

 

5,601

 

 

3,897

 

Total Non-interest Expense

 

38,803

 

 

42,310

 

Income (loss) before income taxes

 

50,948

 

 

(28,092

)

Income tax expense (benefit)

 

9,952

 

 

(5,610

)

Net Income (Loss)

$

40,996

 

$

(22,482

)

 
 
Earnings (loss) per common share:
Basic

$

1.10

 

$

(0.71

)

Diluted

$

1.10

 

$

(0.71

)

 
Average Shares Outstanding:
Basic

 

37,278

 

 

31,666

 

Diluted

 

37,357

 

 

31,666

 

Premier Financial Corp.
Financial Summary and Comparison (Unaudited)
Three Months Ended
March 31,
(dollars in thousands, except per share data)

 

2021

 

 

2020

 

% change

Summary of Operations
 
Tax-equivalent interest income (2)

$

61,609

 

$

54,773

 

12.5

%

Interest expense

 

4,859

 

 

9,059

 

(46.4

)

Tax-equivalent net interest income (2)

 

56,750

 

 

45,714

 

24.1

 

Provision (benefit) for credit losses

 

(6,963

)

 

45,244

 

(115.4

)

Core provision (benefit) for credit losses (4)

 

(6,963

)

 

19,295

 

(136.1

)

Investment securities gains (losses)

 

2,126

 

 

-

 

NM

 

Non-interest income (excluding securities gains/losses)

 

24,149

 

 

13,999

 

72.5

 

Non-interest expense

 

38,803

 

 

42,310

 

(8.3

)

Core non-interest expense (4)

 

38,803

 

 

30,824

 

25.9

 

Income tax expense (benefit)

 

9,952

 

 

(5,610

)

(277.4

)

Net income (loss)

 

40,996

 

 

(22,482

)

(282.4

)

Core net income (4)

 

40,996

 

 

7,470

 

448.8

 

Tax equivalent adjustment (2)

 

237

 

 

251

 

(5.6

)

At Period End
Assets

 

7,530,462

 

 

6,538,942

 

15.2

 

Earning assets

 

6,852,357

 

 

5,889,186

 

16.4

 

Loans

 

5,459,683

 

 

5,113,917

 

6.8

 

Allowance for credit losses - loans

 

74,754

 

 

85,859

 

(12.9

)

Deposits

 

6,351,919

 

 

4,994,148

 

27.2

 

Stockholders’ equity

 

998,186

 

 

916,843

 

8.9

 

Average Balances
Assets

 

7,338,886

 

 

5,357,598

 

37.0

 

Earning assets

 

6,611,343

 

 

4,862,532

 

36.0

 

Loans

 

5,629,715

 

 

4,317,857

 

30.4

 

Deposits and interest-bearing liabilities

 

6,275,160

 

 

4,488,003

 

39.8

 

Deposits

 

6,190,292

 

 

4,240,053

 

46.0

 

Stockholders’ equity

 

972,653

 

 

786,837

 

23.6

 

Stockholders’ equity / assets

 

13.25

%

 

14.69

%

(9.8

)

Per Common Share Data
Net Income (Loss)
Basic

$

1.10

 

$

(0.71

)

(254.7

)

Diluted

 

1.10

 

 

(0.71

)

(254.4

)

Core diluted (4)

 

1.10

 

 

0.24

 

358.3

 

Dividends Paid

 

0.24

 

 

0.22

 

9.1

 

Market Value:
High

$

35.90

 

$

32.05

 

12.0

 

Low

 

22.23

 

 

10.98

 

102.5

 

Close

 

33.26

 

 

14.74

 

125.6

 

Common Book Value

 

26.78

 

 

24.58

 

8.9

 

Tangible Common Book Value (1)

 

17.48

 

 

15.11

 

15.7

 

Shares outstanding, end of period (000s)

 

37,275

 

 

37,288

 

(0.0

)

Performance Ratios (annualized)
Tax-equivalent net interest margin (2)

 

3.43

%

 

3.78

%

(9.3

)

Return on average assets

 

2.27

%

 

-1.69

%

(234.1

)

Core return on average assets (4)

 

2.27

%

 

0.56

%

304.0

 

Return on average equity

 

17.09

%

 

-11.48

%

(248.9

)

Core return on average equity (4)

 

17.09

%

 

3.82

%

347.7

 

Return on average tangible equity

 

26.60

%

 

-17.45

%

(252.5

)

Core return on average tangible equity (4)

 

26.60

%

 

5.80

%

358.9

 

Efficiency ratio (3)

 

47.96

%

 

70.86

%

(32.3

)

Core efficiency ratio (4)

 

47.96

%

 

51.62

%

(7.1

)

Effective tax rate

 

19.53

%

 

19.97

%

(2.2

)

Dividend payout ratio (core)

 

21.82

%

 

91.67

%

(76.2

)

Note: 2020 results include two months of operations from UCFC compared to three for comparable periods 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
March 31,
Mortgage Banking Summary

 

2021

 

 

2020

 

Revenue from sales and servicing of mortgage loans:
Gain from sale of mortgage loans

$

5,640

 

$

4,902

 

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

 

1,917

 

 

1,594

 

Amortization of mortgage servicing rights

 

(2,344

)

 

(1,163

)

Mortgage servicing rights valuation adjustments

 

5,320

 

 

(4,485

)

 

4,893

 

 

(4,054

)

Total revenue from sale and servicing of mortgage loans

$

10,533

 

$

848

 

 
Mortgage servicing rights:
Balance at beginning of period

$

21,666

 

$

10,801

 

Loans sold, servicing retained

 

2,374

 

 

1,376

 

Mortgage servicing rights acquired

 

-

 

 

9,747

 

Amortization

 

(2,344

)

 

(1,163

)

Carrying value before valuation allowance at end of period

 

21,696

 

 

20,761

 

Valuation allowance:
Balance at beginning of period

 

(8,513

)

 

(534

)

Impairment recovery (charges)

 

5,320

 

 

(4,485

)

Balance at end of period

 

(3,193

)

 

(5,019

)

Net carrying value at end of period

$

18,503

 

$

15,742

 

 
COVID-19 Deferrals Update

3/31/2021

12/31/2020

Commercial loan deferrals

$

32,370

 

$

46,038

 

% of commercial loans

 

0.8

%

 

1.2

%

% of total loans

 

0.6

%

 

0.8

%

Retail loan deferrals

$

3,414

 

$

7,412

 

% of retail loans

 

0.2

%

 

0.4

%

% of total loans

 

0.1

%

 

0.1

%

Total loan deferrals

$

35,784

 

$

53,450

 

% of total loans

 

0.7

%

 

1.0

%

 
Commercial Loan Deferral Rollforward

12/31/20 Balance

New Deferrals

Payoffs/ Changes

Return to Pay(1)

3/31/21 Balance

1Q21 Extensions

Interest only 1-3 months

$

5,437

 

$

-

 

$

6,975

 

$

-

 

$

12,412

$

6,975

Interest only 4-5 months

 

-

 

 

-

 

 

74

 

 

-

 

 

74

 

74

Interest only 6 months

 

26,688

 

 

-

 

 

(1,785

)

 

(5,075

)

 

19,828

 

-

Deferred payment 1-90 days

 

10,404

 

 

-

 

 

379

 

 

(10,727

)

 

56

 

56

Deferred payment 91-179 days

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

-

Deferred payment 180 days

 

3,509

 

 

-

 

 

(62

)

 

(3,447

)

 

-

 

-

Total

$

46,038

 

$

-

 

$

5,581

 

$

(19,249

)

$

32,370

$

7,105

 
Commercial Loan Deferral Expirations Update

3/31/21 Balance

April

$

25,320

 

May

 

7,050

 

June

 

-

 

July

 

-

 

August

 

-

 

September

 

-

 

Total

$

32,370

 

 

Note: 2020 results include two months of operations from UCFC compared to three for comparable periods in 2021.

(1) Represents approximately 92.7% of previously disclosed first quarter 2021 scheduled expirations.
Premier Financial Corp.
Yield Analysis
Three Months Ended March 31,
(dollars in thousands)

2021

2020

Average Yield Average Yield
Balance Interest(1) Rate(2) Balance Interest(1) Rate(2)
Interest-earning assets:
Loans receivable

$

5,629,715

$

57,579

4.09

%

$

4,317,857

$

51,485

4.80

%

Securities

 

823,986

 

3,905

1.90

%

 

449,744

 

2,943

2.69

%

Interest Bearing Deposits

 

145,658

 

66

0.18

%

 

68,980

 

230

1.34

%

FHLB stock

 

11,984

 

59

1.97

%

 

25,951

 

115

1.78

%

Total interest-earning assets

 

6,611,343

 

61,609

3.73

%

 

4,862,532

 

54,773

4.54

%

Non-interest-earning assets

 

727,543

 

495,066

Total assets

$

7,338,886

$

5,357,598

Deposits and Interest-bearing liabilities:
Interest bearing deposits

$

4,546,272

$

4,164

0.37

%

$

3,343,833

$

7,771

0.93

%

FHLB advances and other

 

-

 

-

0.00

%

 

209,508

 

1,006

1.93

%

Subordinated debentures

 

84,868

 

695

3.28

%

 

36,083

 

273

3.04

%

Notes payable

 

-

 

-

-

 

 

2,359

 

9

1.53

%

Total interest-bearing liabilities

 

4,631,140

 

4,859

0.42

%

 

3,591,783

 

9,059

1.01

%

Non-interest bearing deposits

 

1,644,020

 

-

-

 

 

896,220

 

-

-

 

Total including non-interest-bearing deposits

 

6,275,160

 

4,859

0.31

%

 

4,488,003

 

9,059

0.81

%

Other non-interest-bearing liabilities

 

91,073

 

82,758

Total liabilities

 

6,366,233

 

4,570,761

Stockholders' equity

 

972,653

 

786,837

Total liabilities and stockholders' equity

$

7,338,886

$

5,357,598

Net interest income; interest rate spread

$

56,750

3.31

%

$

45,714

3.53

%

Net interest margin (4)

3.43

%

3.78

%

Average interest-earning assets to average interest bearing liabilities

143

%

135

%

Note: 2020 results include two months of operations from UCFC compared to three for comparable periods 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)

1st Qtr 2021

4th Qtr 2020

3rd Qtr 2020

2nd Qtr 2020

1st Qtr 2020

Summary of Operations
Tax-equivalent interest income (1)

$

61,609

 

$

61,067

 

$

60,418

 

$

62,705

 

$

54,773

 

Interest expense

 

4,859

 

 

5,849

 

 

6,888

 

 

8,145

 

 

9,059

 

Tax-equivalent net interest income (1)

 

56,750

 

 

55,218

 

 

53,530

 

 

54,560

 

 

45,714

 

Provision (benefit) for credit losses

 

(6,963

)

 

(6,764

)

 

2,794

 

 

2,975

 

 

45,244

 

Core provision (benefit) for credit losses (3)

 

(6,963

)

 

(6,764

)

 

2,794

 

 

2,975

 

 

19,295

 

Investment securities gains (losses)

 

2,126

 

 

76

 

 

1,480

 

 

(2

)

 

-

 

Non-interest income (excluding securities gains/losses)

 

24,149

 

 

18,594

 

 

23,520

 

 

23,017

 

 

13,999

 

Non-interest expense

 

38,803

 

 

41,313

 

 

43,563

 

 

37,984

 

 

42,310

 

Core non-interest expense (3)

 

38,803

 

 

39,123

 

 

38,445

 

 

35,885

 

 

30,824

 

Income tax expense (benefit)

 

9,952

 

 

8,240

 

 

6,259

 

 

7,303

 

 

(5,610

)

Net income (loss)

 

40,996

 

 

30,848

 

 

25,655

 

 

29,057

 

 

(22,482

)

Core net income (3)

 

40,996

 

 

32,577

 

 

28,587

 

 

30,715

 

 

7,470

 

Tax equivalent adjustment (1)

 

237

 

 

251

 

 

259

 

 

256

 

 

251

 

At Period End
Total assets

$

7,530,462

 

$

7,211,734

 

$

6,974,953

 

$

7,013,811

 

$

6,538,942

 

Earning assets

 

6,852,357

 

 

6,546,299

 

 

6,340,132

 

 

6,345,655

 

 

5,889,186

 

Loans

 

5,459,683

 

 

5,491,240

 

 

5,470,548

 

 

5,457,238

 

 

5,113,917

 

Allowance for loan losses

 

74,754

 

 

82,079

 

 

88,917

 

 

88,555

 

 

85,859

 

Deposits

 

6,351,919

 

 

6,047,841

 

 

5,795,757

 

 

5,759,843

 

 

4,994,148

 

Stockholders’ equity

 

998,186

 

 

982,276

 

 

959,025

 

 

940,968

 

 

916,843

 

Stockholders’ equity / assets

 

13.26

%

 

13.62

%

 

13.75

%

 

13.42

%

 

14.02

%

Goodwill

 

317,948

 

 

317,948

 

 

317,948

 

 

317,948

 

 

317,520

 

Average Balances
Total assets

$

7,338,886

 

$

7,089,060

 

$

6,935,783

 

$

7,005,783

 

$

5,357,598

 

Earning assets

 

6,611,343

 

 

6,363,306

 

 

6,211,267

 

 

6,247,037

 

 

4,862,532

 

Loans

 

5,629,715

 

 

5,609,116

 

 

5,555,621

 

 

5,389,805

 

 

4,317,857

 

Deposits and interest-bearing liabilities

 

6,275,160

 

 

6,044,049

 

 

5,901,652

 

 

5,963,127

 

 

4,488,003

 

Deposits

 

6,190,292

 

 

5,956,550

 

 

5,738,006

 

 

5,490,986

 

 

4,240,053

 

Stockholders’ equity

 

972,653

 

 

946,223

 

 

927,506

 

 

932,793

 

 

786,837

 

Stockholders’ equity / assets

 

13.25

%

 

13.35

%

 

13.37

%

 

13.31

%

 

14.70

%

Per Common Share Data
Net Income (Loss):
Basic

$

1.10

 

$

0.83

 

$

0.69

 

$

0.78

 

$

(0.71

)

Diluted

 

1.10

 

 

0.82

 

 

0.69

 

 

0.78

 

 

(0.71

)

Core diluted (3)

 

1.10

 

 

0.87

 

 

0.77

 

 

0.82

 

 

0.24

 

Dividends Paid

 

0.24

 

 

0.22

 

 

0.22

 

 

0.22

 

 

0.22

 

Market Value:
High

$

35.90

 

$

23.49

 

$

21.24

 

$

20.11

 

$

32.05

 

Low

 

22.23

 

 

14.90

 

 

14.74

 

 

12.95

 

 

10.98

 

Close

 

33.26

 

 

23.00

 

 

15.58

 

 

17.67

 

 

14.74

 

Common Book Value

 

26.78

 

 

26.34

 

 

25.71

 

 

25.23

 

 

24.58

 

Shares outstanding, end of period (000s)

 

37,275

 

 

37,291

 

 

37,297

 

 

37,296

 

 

37,288

 

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

 

3.43

%

 

3.47

%

 

3.47

%

 

3.51

%

 

3.78

%

Return on average assets

 

2.27

%

 

1.73

%

 

1.49

%

 

1.67

%

 

-1.69

%

Core return on average assets (3)

 

2.27

%

 

1.83

%

 

1.64

%

 

1.76

%

 

0.56

%

Return on average equity

 

17.09

%

 

12.97

%

 

11.12

%

 

12.53

%

 

-11.48

%

Core return on average equity (3)

 

17.09

%

 

13.70

%

 

12.26

%

 

13.24

%

 

3.82

%

Return on average tangible equity

 

26.60

%

 

20.37

%

 

17.71

%

 

20.13

%

 

-17.45

%

Core return on average tangible equity (3)

 

26.60

%

 

21.51

%

 

19.73

%

 

21.28

%

 

5.80

%

Efficiency ratio (2)

 

47.96

%

 

55.97

%

 

56.54

%

 

48.96

%

 

70.86

%

Core efficiency ratio (3)

 

47.96

%

 

53.00

%

 

49.90

%

 

46.26

%

 

51.62

%

Effective tax rate

 

19.53

%

 

21.08

%

 

19.61

%

 

20.09

%

 

19.97

%

Common dividend payout ratio (core)

 

21.82

%

 

25.29

%

 

28.57

%

 

26.83

%

 

91.67

%

Note: 2020 results include two months of operations from UCFC compared to three for comparable periods in 2021.
(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)

1st Qtr 2021

4th Qtr 2020

3rd Qtr 2020

2nd Qtr 2020

1st Qtr 2020

Loan Portfolio Composition
One to four family residential real estate

$

1,168,559

 

$

1,201,051

 

$

1,194,940

 

$

1,226,106

 

$

1,265,901

 

Construction

 

749,190

 

 

667,649

 

 

580,060

 

 

509,548

 

 

521,442

 

Commercial real estate

 

2,402,067

 

 

2,383,001

 

 

2,328,944

 

 

2,266,189

 

 

2,200,266

 

Commercial

 

1,172,910

 

 

1,202,353

 

 

1,263,565

 

 

1,244,549

 

 

897,865

 

Consumer finance

 

117,539

 

 

120,729

 

 

128,995

 

 

146,139

 

 

137,679

 

Home equity and improvement

 

257,764

 

 

272,701

 

 

281,010

 

 

290,459

 

 

301,146

 

Total loans

 

5,868,029

 

 

5,847,484

 

 

5,777,514

 

 

5,682,990

 

 

5,324,299

 

Less:
Undisbursed loan funds

 

405,983

 

 

355,065

 

 

300,174

 

 

221,137

 

 

206,236

 

Deferred loan origination fees

 

2,363

 

 

1,179

 

 

6,792

 

 

4,615

 

 

4,146

 

Allowance for credit losses - loans

 

74,754

 

 

82,079

 

 

88,917

 

 

88,555

 

 

85,859

 

Net Loans

$

5,384,929

 

$

5,409,161

 

$

5,381,631

 

$

5,368,683

 

$

5,028,058

 

 
Allowance for credit losses - loans
Beginning allowance

$

82,079

 

$

88,917

 

$

88,555

 

$

85,859

 

$

31,243

 

CECL adoption

 

-

 

 

-

 

 

-

 

 

-

 

 

2,354

 

Acquisition related allowance/provision (non PCD)

 

-

 

 

-

 

 

-

 

 

-

 

 

25,949

 

Acquisition related allowance/goodwill (PCD)

 

-

 

 

-

 

 

-

 

 

-

 

 

7,698

 

Provision (benefit) for credit losses - loans

 

(7,514

)

 

(6,158

)

 

3,658

 

 

1,868

 

 

17,837

 

Net recoveries (charge-offs)

 

189

 

 

(680

)

 

(3,296

)

 

828

 

 

778

 

Ending allowance

$

74,754

 

$

82,079

 

$

88,917

 

$

88,555

 

$

85,859

 

 
Credit Quality
Total non-performing loans (1)

$

49,298

 

$

51,983

 

$

48,360

 

$

39,470

 

$

32,692

 

Real estate owned (REO)

 

53

 

 

343

 

 

521

 

 

573

 

 

548

 

Total non-performing assets (2)

$

49,351

 

$

52,025

 

$

48,881

 

$

40,043

 

$

33,240

 

Net charge-offs (recoveries)

 

(189

)

 

680

 

 

3,296

 

 

(828

)

 

(778

)

 
Restructured loans, accruing (3)

 

6,068

 

 

7,173

 

 

8,499

 

 

7,916

 

 

7,474

 

 
Allowance for credit losses - loans / loans

 

1.37

%

 

1.49

%

 

1.63

%

 

1.62

%

 

1.68

%

Allowance for credit losses - loans / non-performing assets

 

151.47

%

 

156.86

%

 

182.05

%

 

221.15

%

 

259.07

%

Allowance for credit losses - loans / non-performing loans

 

151.64

%

 

157.90

%

 

184.01

%

 

224.36

%

 

263.43

%

Non-performing assets / loans plus REO

 

0.90

%

 

0.95

%

 

0.89

%

 

0.73

%

 

0.65

%

Non-performing assets / total assets

 

0.66

%

 

0.73

%

 

0.70

%

 

0.57

%

 

0.51

%

Net charge-offs / average loans (annualized)

 

-0.01

%

 

0.05

%

 

0.24

%

 

-0.06

%

 

-0.07

%

 
Deposit Balances
Non-interest-bearing demand deposits

$

1,728,895

 

$

1,597,262

 

$

1,436,807

 

$

1,454,842

 

$

1,041,315

 

Interest-bearing demand deposits and money market

 

2,806,271

 

 

2,627,669

 

 

2,511,263

 

 

2,361,486

 

 

2,052,935

 

Savings deposits

 

761,899

 

 

700,480

 

 

674,354

 

 

671,650

 

 

623,331

 

Retail time deposits less than $250,000

 

842,624

 

 

912,006

 

 

975,658

 

 

1,078,758

 

 

1,091,003

 

Retail time deposits greater than $250,000

 

212,230

 

 

210,424

 

 

197,675

 

 

193,107

 

 

185,564

 

Total deposits

$

6,351,919

 

$

6,047,841

 

$

5,795,757

 

$

5,759,843

 

$

4,994,148

 

(1) Non-performing loans consist of non-accrual loans.
(2) Non-performing assets are non-performing loans plus real estate and other assets acquired by foreclosure or deed-in-lieu thereof.
(3) Accruing restructured loans are loans with known credit problems that are not contractually past due and therefore are not included in non-performing loans.
Premier Financial Corp.
Loan Delinquency Information
(dollars in thousands) Total Balance Current

30 to 89 days

past due

% of Total Non Accrual Loans % of Total
 
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

%

 
December 31, 2020
One to four family residential real estate

$

1,201,051

$

1,178,876

$

8,318

0.7

%

$

13,857

1.2

%

Construction

 

667,649

 

664,248

 

2,294

0.3

%

 

1,107

0.2

%

Commercial real estate

 

2,383,001

 

2,359,299

 

993

0.0

%

 

22,709

1.0

%

Commercial

 

1,202,353

 

1,192,949

 

9

0.0

%

 

9,395

0.8

%

Consumer finance

 

120,729

 

116,632

 

2,248

1.9

%

 

1,849

1.5

%

Home equity and improvement

 

272,701

 

265,023

 

4,612

1.7

%

 

3,066

1.1

%

Total loans

$

5,847,484

$

5,777,027

$

18,474

0.3

%

$

51,983

0.9

%

 
March 31, 2020
One to four family residential real estate

$

1,265,901

$

1,253,304

$

5,890

0.5

%

$

6,707

0.5

%

Construction

 

521,442

 

521,442

 

-

0.0

%

 

-

0.0

%

Commercial real estate

 

2,200,266

 

2,180,660

 

220

0.0

%

 

19,386

0.9

%

Commercial

 

897,865

 

893,605

 

299

0.0

%

 

3,961

0.4

%

Consumer finance

 

137,679

 

135,727

 

712

0.5

%

 

1,240

0.9

%

Home equity and improvement

 

301,146

 

296,330

 

3,517

1.2

%

 

1,299

0.4

%

Total loans

$

5,324,299

$

5,281,068

$

10,638

0.2

%

$

32,593

0.6

%

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

%

 
December 31, 2020
One to four family residential real estate

$

1,186,262

$

1,183,104

$

796

0.1

%

$

2,362

0.2

%

Construction

 

667,649

 

647,906

 

19,743

3.0

%

 

-

0.0

%

Commercial real estate

 

2,359,713

 

2,202,167

 

111,213

4.7

%

 

46,333

2.0

%

Commercial

 

1,174,545

 

1,143,715

 

23,713

2.0

%

 

7,117

0.6

%

Consumer finance

 

119,841

 

119,736

 

-

0.0

%

 

105

0.1

%

Home equity and improvement

 

268,311

 

267,872

 

-

0.0

%

 

439

0.2

%

PCD loans

 

71,163

 

33,311

 

3,832

5.4

%

 

34,020

47.8

%

Total loans

$

5,847,484

$

5,597,811

$

159,297

2.7

%

$

90,376

1.5

%

 
March 31, 2020
One to four family residential real estate

$

1,248,250

$

1,244,175

$

390

0.0

%

$

3,685

0.3

%

Construction

 

520,408

 

520,408

 

-

0.0

%

 

-

0.0

%

Commercial real estate

 

2,163,196

 

2,107,879

 

28,045

1.3

%

 

27,272

1.3

%

Commercial

 

871,944

 

839,893

 

20,477

2.3

%

 

11,574

1.3

%

Consumer finance

 

136,426

 

136,382

 

-

0.0

%

 

44

0.0

%

Home equity and improvement

 

294,878

 

294,556

 

-

0.0

%

 

322

0.1

%

PCD loans

 

89,197

 

27,851

 

21,151

23.7

%

 

40,195

45.1

%

Total loans

$

5,324,299

$

5,143,293

$

70,063

1.3

%

$

83,092

1.6

%

Premier Financial Corp.
Non-GAAP Reconciliations
 
(In thousands, except per share and ratio data) 1st Qtr 2021 4th Qtr 2020 3rd Qtr 2020 2nd Qtr 2020 1st Qtr 2020
Acquisition related charges (pre-tax)

$

-

 

$

2,190

 

$

3,711

 

$

2,099

 

$

11,486

 

Less: Tax benefit of acquisition related charges

 

-

 

 

460

 

 

779

 

 

441

 

 

2,034

 

Acquisition related charges (after-tax)

$

-

 

$

1,730

 

$

2,932

 

$

1,658

 

$

9,452

 

 
Total non-interest expenses

$

38,803

 

$

41,313

 

$

43,563

 

$

37,984

 

$

42,310

 

Less: Acquisition related charges (pre-tax)

 

-

 

 

2,190

 

 

3,711

 

 

2,099

 

 

11,486

 

Less: FHLB prepayment charges(1)

 

-

 

 

-

 

 

1,407

 

 

-

 

 

-

 

Core non-interest expenses

$

38,803

 

$

39,123

 

$

38,445

 

$

35,885

 

$

30,824

 

 
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

$

(6,963

)

$

(6,764

)

$

2,794

 

$

2,975

 

$

45,244

 

Less: Acquisition related provision (pre-tax)

 

-

 

 

-

 

 

-

 

 

-

 

 

25,949

 

Core provision (benefit) for credit losses

$

(6,963

)

$

(6,764

)

$

2,794

 

$

2,975

 

$

19,295

 

 
Non-interest income

$

26,275

 

$

18,669

 

$

25,000

 

$

23,015

 

$

13,999

 

Less: Securities gains (losses)

 

2,126

 

 

76

 

 

1,480

 

 

(2

)

 

-

 

Non-interest income (excluding securities gains/losses)

$

24,149

 

$

18,593

 

$

23,520

 

$

23,017

 

$

13,999

 

 
Tax-equivalent net interest income

$

56,750

 

$

55,218

 

$

53,530

 

$

54,560

 

$

45,714

 

Non-interest income (excluding securities gains/losses)

 

24,149

 

 

18,593

 

 

23,520

 

 

23,017

 

 

13,999

 

Total revenues

 

80,899

 

 

73,811

 

 

77,050

 

 

77,577

 

 

59,713

 

Core non-interest expenses

$

38,803

 

$

39,123

 

$

38,445

 

$

35,885

 

$

30,824

 

Core efficiency ratio

 

47.96

%

 

53.00

%

 

49.90

%

 

46.26

%

 

51.62

%

 
Income (loss) before income taxes

$

50,948

 

$

39,087

 

$

31,914

 

$

36,360

 

$

(28,092

)

Add: Provision (benefit) for credit losses

 

(6,963

)

 

(6,764

)

 

2,794

 

 

2,975

 

 

45,244

 

Pre-tax pre-provision income

 

43,985

 

 

32,323

 

 

34,708

 

 

39,335

 

 

17,152

 

Add: Acquisition related charges (pre-tax)

 

-

 

 

2,190

 

 

3,711

 

 

2,099

 

 

11,486

 

Core pre-tax pre-provision income

$

43,985

 

$

34,513

 

$

38,419

 

$

41,434

 

$

28,638

 

Average total assets

$

7,338,886

 

$

7,089,060

 

$

6,935,783

 

$

7,005,783

 

$

5,357,598

 

Core pre-tax pre-provision return on average assets

 

2.43

%

 

1.94

%

 

2.20

%

 

2.38

%

 

2.15

%

 
Net income (loss)

$

40,996

 

$

30,847

 

$

25,655

 

$

29,057

 

$

(22,482

)

Add: Acquisition related provision (after-tax)

 

-

 

 

-

 

 

-

 

 

-

 

 

20,500

 

Add: Acquisition related charges (after-tax)

 

-

 

 

1,730

 

 

2,932

 

 

1,658

 

 

9,452

 

Core net income

$

40,996

 

$

32,577

 

$

28,587

 

$

30,715

 

$

7,470

 

 
Diluted shares - Reported

 

37,357

 

 

37,350

 

 

37,334

 

 

37,324

 

 

31,666

 

Add: Dilutive shares for core net income

 

-

 

 

-

 

 

-

 

 

-

 

 

121

 

Diluted shares - Core

 

37,357

 

 

37,350

 

 

37,334

 

 

37,324

 

 

31,787

 

Core diluted EPS

$

1.10

 

$

0.87

 

$

0.77

 

$

0.82

 

$

0.24

 

 
Average total assets

$

7,338,886

 

$

7,089,060

 

$

6,935,783

 

$

7,005,783

 

$

5,357,598

 

Core return on average assets

 

2.27

%

 

1.83

%

 

1.64

%

 

1.76

%

 

0.56

%

 
Average total equity

$

972,653

 

$

946,223

 

$

927,506

 

$

932,793

 

$

786,837

 

Core return on average equity

 

17.09

%

 

13.70

%

 

12.26

%

 

13.24

%

 

3.82

%

 
Average total tangible equity

$

624,996

 

$

602,495

 

$

576,457

 

$

580,449

 

$

518,253

 

Core return on average tangible equity

 

26.60

%

 

21.51

%

 

19.73

%

 

21.28

%

 

5.80

%

 
Note: 2020 results include two months of operations from UCFC compared to three for comparable periods in 2021.
(1) Represents prepayment penalties on FHLB early extinguishments funded by gains on securities sales that are excluded from revenues for efficiency ratio calculation.

 

Contacts

Paul Nungester
EVP and CFO
419.785.8700
PNungester@yourpremierbank.com

Release Summary

PREMIER FINANCIAL CORP. ANNOUNCES RECORD QUARTERLY RESULTS AND DIVIDEND INCREASE

Contacts

Paul Nungester
EVP and CFO
419.785.8700
PNungester@yourpremierbank.com