Premier Financial Corp. Announces Solid Third Quarter Results Including Core Loan Growth and Net Interest Margin Expansion

Third Quarter 2021 Highlights

  • Net income of $28.4 million, up $2.7 million (10.5%) from 2020 third quarter
  • Earnings per share of $0.76, up $0.07 (10.1%) from 2020 third quarter
  • Loan growth of $64.4 million excluding PPP (up 5.1% annualized) including $37.2 million for commercial loans (up 4.4% annualized) during 2021 third quarter
  • Net interest margin of 3.38% or 3.27% excluding PPP and marks, up 4 and 7 basis points respectively, from second quarter 2021
  • Average deposit costs down 3 basis points to 0.20% from second quarter 2021
  • Allowance to loans ratio of 1.39%, or 1.43% excluding PPP loans, for 2021 third quarter
  • Service fee income of $6.1 million, up $1.3 million (26.3%) from 2020 third quarter
  • Pre-tax pre-provision ROAA of 1.91% for 2021 third quarter
  • ROA, ROE and ROTE of 1.49%, 11.03% and 16.65% for 2021 third quarter
  • Increased dividend $0.01 to $0.28 per share, up 27% year to date

DEFIANCE, Ohio--()--Premier Financial Corp. (Nasdaq: PFC) (“Premier” or the “Company”) today announced 2021 third quarter results. Net income for the third quarter of 2021 was $28.4 million, or $0.76 per diluted common share, compared to $25.7 million, or $0.69 per diluted common share, for the third quarter of 2020. The prior year’s results include the impact of $3.7 million of acquisition-related charges for the three months ended September 30, 2020, which had an after-tax cost of $2.9 million or $0.08 per diluted common share. Net income for the nine months ended September 30, 2021, was $100.7 million, or $2.70 per diluted common share, compared to $32.2 million, or $0.91 per diluted common share, for the nine months ended September 30, 2020. The nine-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 $51.0 million that included $25.9 million related to acquisition accounting for an after-tax cost of $20.5 million, or $0.58 per diluted common share. The nine months of 2021 included a provision recovery of $9.1 million, which had an after-tax benefit of $7.2 million, or $0.19 per diluted common share, and no acquisition impact. Additionally, the prior year’s nine-month results include the impact of $17.3 million of acquisition-related charges, which had an after-tax cost of $14.0 million, or $0.39 per diluted common share. Excluding the impact of the acquisition-related provision and charges, earnings for the first nine months of 2020 were $66.8 million, or $1.88 per diluted common share.

“We are very pleased to report our second consecutive quarter of strong loan growth at 5.1% annualized,” said Gary Small, President and CEO of Premier. “Core commercial, residential mortgage, and consumer each contributed over 4.4% for the period. Commercial and consumer new business pipelines are at their highest level for the year with businesses expressing labor constraints as more of a concern than supply chain challenges at this point. Household deposits remain elevated and consumer loan delinquency continues to track at all-time lows. Clients are well positioned as we head into the upcoming holiday season.”

Business client support efforts

As a part of the CARES Act, the Small Business Administration created the Paycheck Protection Program (“PPP”) to provide small businesses with loans as a direct incentive to keep their workers on the payroll. Premier Bank actively participated in PPP for clients and made 2,880 loans for a total of $443.3 million during the year ended December 31, 2020. Total gross fees for these loans equaled $14.8 million. To date, Premier Bank has recognized $14.7 million as loan interest income, including $0.9 million and $8.5 million during the three and nine months ended September 30, 2021, respectively. Additionally, a total of $433.3 million in loans have been extinguished to date, including $83.7 million and $376.9 million during the three and nine months ended September 30, 2021, respectively.

Beginning in January 2021, Premier Bank participated in the second round of PPP lending and made 2,231 loans for a total of $193.6 million during the nine months ended September 30, 2021. Total gross fees for these loans were $7.8 million and Premier Bank has recognized $2.7 million and $3.2 million in loan interest income during the three and nine months ended September 30, 2021, respectively. Additionally, a total of $59.6 million in loans have been extinguished to date, all during the three months ended September 30, 2021. Total PPP loans were $143.9 million at September 30, 2021.

Net interest income up compared to third quarter of 2020

Net interest income of $57.0 million in the third quarter of 2021 was up from $53.3 million in the third quarter of 2020. The increase over the prior year’s third quarter was attributable to growth in interest-earning assets, PPP fees and a 23 basis point decrease in average costs of funds. Net interest margin was 3.38% for the third quarter of 2021, up from 3.34% in the second quarter of 2021, but down from 3.45% in the third quarter of 2020. Yield on interest earning assets increased to 3.61% in the third quarter of 2021, up 2 basis points from 3.59% in the second quarter of 2021. The improvement from second quarter to third quarter was primarily due to $64.4 million of non-PPP loan growth (5.1% annualized). Total cost of funds decreased 2 basis points in the third quarter of 2021 to 0.24% from the second quarter of 2021, while the total cost of interest-bearing liabilities decreased 4 basis points to 0.32%. The 2021 third quarter results include the impact of acquisition marks and related accretion for the UCFC acquisition. Interest income includes $0.6 million of accretion and interest expense includes $0.3 million of accretion, which combined added 5 basis points of net interest margin. The third quarter results also include the impact of PPP loans. Interest income includes $2.9 million on average balances of $219.4 million, which increased net interest margin by 6 basis points. Excluding the impact of acquisition marks and PPP loans, net interest margin would be 3.27% for the third quarter of 2021 compared to 3.20% for the second quarter of 2021 and 3.41% for the third quarter of 2020.

“Net interest margin stabilized during the quarter with 3.27% core margin reflecting a 7 basis point improvement versus second quarter,” said Small. “We made progress on all fronts during the quarter with lower cost of funds, lower cost of interest bearing deposits, and higher yields. While some additional improvement in funding costs may contribute to net interest margin growth in the near term, our loan portfolio growth and efficient management of the securities portfolio will drive our net interest income performance longer term.”

Non-interest income down from third quarter of 2020

Premier’s non-interest income in the third quarter of 2021 was $18.3 million compared with $25.0 million in the third quarter of 2020. Total mortgage banking income decreased to $6.2 million in the third quarter of 2021 from $12.0 million in the third quarter of 2020. Mortgage gains decreased to $5.4 million in the third quarter of 2021 from $13.8 million in the third quarter of 2020 but increased from $2.7 million in the second quarter of 2021. Total mortgage loan production has been consistently strong compared to prior year, while gains have declined primarily due to compressed margins and less favorable marks on the in-process portfolio. The increase from the prior quarter was primarily due to the expected improvement in saleable mix. Mortgage loan servicing revenue of $1.9 million in the third quarter of 2021 was consistent with $1.9 million in the third quarter of 2020. Amortization of mortgage servicing rights decreased to $1.8 million in the third quarter of 2021 from $2.0 million in the third quarter of 2020. Premier also had a positive change in the valuation adjustment for mortgage servicing assets of $0.8 million in the third quarter of 2021 compared with a negative adjustment of $1.7 million in the third quarter of 2020. This item closely follows the trend in USTN-10, which increased 7 basis points during the quarter to 1.52% at September 30, 2021.

For the third quarter of 2021, service fees and other charges were $6.1 million, up 26% from $4.8 million in the third quarter of 2020 primarily due to higher ATM and interchange related fees. This was mostly offset by a combined $1.0 million decrease in wealth management, insurance commissions and other income. Securities gains were $0.3 million in the third quarter of 2021 compared to a gain of $1.5 million in the third quarter of 2020, which included $1.4 million from a transaction completed to offset a $1.4 million FHLB prepayment penalty in other expenses noted below. BOLI income increased $0.1 million from the third quarter of 2020 primarily due to a $20 million premium purchase during the third quarter of 2021.

“Residential mortgage fee income returned to more typical levels in the third quarter and brought our year to date performance in line with our expectations for the year,” said Small. “Mortgage origination activity remained strong for the quarter with a better mix of salable production.”

Core non-interest expenses up from third quarter of 2020

Total non-interest expense was $39.0 million in the third quarter of 2021, down from $43.6 million in the third quarter of 2020, but up from $38.4 million excluding $3.7 million of acquisition related charges and $1.4 million FHLB prepayment penalty. Compensation and benefits increased to $23.4 million in the third quarter of 2021, compared to $20.2 million in the third quarter of 2020. Occupancy expense was $3.7 million in the third quarter of 2021, down from $4.0 million in the third quarter of 2020. Data processing cost was $3.4 million in the third quarter of 2021, down from $4.3 million in the third quarter of 2020. Amortization of intangibles was $1.5 million in the third quarter of 2021, down from $1.7 million in the third quarter of 2020. Other non-interest expense was $5.2 million in the third quarter of 2021, down from $7.1 million in the third quarter of 2020, or down from $5.7 million excluding $1.4 million of prepayment penalties from the early extinguishment of $30 million of fixed rate FHLB advances that had a weighted average rate of 2.0%.

Credit quality

Non-performing assets totaled $60.1 million, or 0.81% of assets, at September 30, 2021, an increase from $41.3 million at June 30, 2021, and an increase from $48.3 million at September 30, 2020. The increase during the third quarter was primarily due to a single commercial credit relationship. Accruing troubled debt restructured loans were $6.5 million at September 30, 2021, compared with $8.5 million at September 30, 2020. Loan delinquencies increased to $11.2 million, or 0.2% of loans, at September 30, 2021, from $9.9 million at June 30, 2021, but decreased from $20.9 million at September 30, 2020.

The 2021 third quarter results include net loan recoveries of $0.3 million and a total provision expense of $1.8 million compared with net loan charge-offs of $3.3 million and a total provision expense of $2.8 million for the same period in 2020. The allowance for credit losses on loans as a percentage of total loans was 1.39% at September 30, 2021, or 1.43% excluding PPP loans, compared with 1.33% at June 30, 2021, or 1.37% excluding PPP loans, and 1.63%, or 1.77% excluding PPP loans, at September 30, 2020. The continued economic improvement after the 2020 pandemic-related downturn led to the year-over-year decrease in the provision expense and allowance percentages. As of September 30, 2021, Premier Bank had no pandemic-related deferrals, down from one retail loan for $13,000 at June 30, 2021.

“The increase in provision expense and allowance percentages from the prior quarter was primarily due to the establishment of a specific reserve for a single non-performing commercial credit, partially offset by improvements in the remainder of the portfolio,” said Paul Nungester, CFO of Premier. “We are comfortable with an all-in reserve coverage level of 1.57% excluding PPP loans and including unamortized purchase accounting marks.”

Year to date results

For the nine-month period ended September 30, 2021, net income totaled $100.7 million, or $2.70 per diluted common share, compared to $32.2 million, or $0.91 per diluted common share for the nine months ended September 30, 2020. Results for the 2020 period included eight months of income and expenses from UCFC compared to nine months in 2021. The year-over-year comparison is also substantially impacted by the prior year’s provision expense of $49.3 million, which included $25.9 million related to acquisition accounting for an after-tax cost of $20.5 million, or $0.58 per diluted common share. The 2021 period included a provision credit of $9.1 million, which had an after-tax benefit of $7.2 million, or $0.19 per diluted common share, and no acquisition impact. Additionally, the prior year’s results include the impact of $17.3 million of acquisition-related charges, which had an after-tax cost of $14.0 million, or $0.39 per diluted common share. Excluding the impact of acquisition-related provision and charges, earnings for the first nine months of 2020 were $66.8 million, or $1.88 per diluted common share.

Net interest income was $170.2 million for the first nine months of 2021 compared with $153.0 million in the first nine months of 2020. Average interest-earning assets increased to $6.7 billion in the first nine months of 2021 compared to $5.8 billion in the first nine months of 2020. Net interest margin for the first nine months of 2021 was 3.39%, down 15 basis points from the 3.54% margin reported in the nine-month period ended September 30, 2020. Results include the impact of acquisition marks and related accretion for the UCFC acquisition. For the first nine months of 2021, interest income includes $3.2 million of accretion and interest expense includes $1.0 million of accretion, which combined added 9 basis points of net interest margin. The results in the first nine months of 2021 also include the impact of PPP loans. Interest income includes $11.9 million on average balances of $343.7 million, which increased net interest margin by 7 basis points. Excluding the impact of acquisition marks and PPP loans, net interest margin was 3.23% for the first nine months of 2021 compared to 3.44% for the first nine months of 2020.

Non-interest income for the first nine months of 2021 was $62.1 million compared to $62.0 million during the same period of 2020. Service fees and other charges were $17.8 million for the first nine months of 2021, up from $15.6 million during the same period of 2020. Mortgage banking income was $18.9 million for the first nine months of 2021, down from $22.8 million during the same period of 2020. Insurance commissions were $12.4 million for the first nine months of 2021 compared with $12.9 million for the same period of 2020. Wealth management income was $4.6 million for the first nine months of 2021, up from $4.4 million during the same period of 2020. Securities gains were $3.0 million for the first nine months of 2021 compared to $1.5 million for the same period in 2020. Approximately $2.2 million of the 2021 gain was related to the sale of securities where the Company took advantage of pricing to realize gains and reinvested in a mix of new securities that will generate 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 $3.0 million in the first nine months of 2021, including $0.3 million of claim gains, compared to $2.5 million and no claim gains in the first nine months of 2020. Other non-interest income for the first nine months of 2021 was $2.4 million compared to $2.3 million in 2020.

Non-interest expense was $116.2 million for the first nine months of 2021 compared to $123.9 million, or $105.2 million excluding acquisition-related charges and FHLB prepayment penalties, for the same period of 2020. Compensation and benefits expense was $66.4 million for the first nine months of 2021 compared with $57.3 million during the same period of 2020. Expenses also included net decreases of $1.1 million for occupancy, FDIC insurance premiums, financial institution taxes, data processing and amortization of intangibles and an increase of $1.7 million for other expenses.

Total assets at $7.47 billion

Total assets at September 30, 2021, were $7.47 billion compared to $7.59 billion at June 30, 2021, and $6.97 billion at September 30, 2020. Gross loans receivable (including loans held for sale) were $5.45 billion at September 30, 2021, compared to $5.55 billion at June 30, 2021, and $5.68 billion at September 30, 2020. At September 30, 2021, gross loans receivable decreased $230.5 million from a year ago due to a $299.3 million decrease in PPP loans. Excluding PPP, loans grew $68.8 million organically, or 1.3% from a year ago. Commercial loans excluding PPP increased $88.2 million from September 30, 2020, to 2021, or 2.6%, despite a $23.3 million decrease in lines of credit. Securities at September 30, 2021, were $1.26 billion compared to $1.29 billion at June 30, 2021, and $579.2 million at September 30, 2020. Also, at September 30, 2021, goodwill and other intangible assets totaled $343.6 million compared to $345.1 million at June 30, 2021, and $350.0 million at September 30, 2020, with the decrease attributable to intangibles amortization.

Total deposits at September 30, 2021, were $6.25 billion compared with $6.29 billion at June 30, 2021, and $5.80 billion at September 30, 2020. At September 30, 2021, total deposits grew $452.9 million organically, or 7.8% from a year ago.

Total stockholders’ equity was $1.03 billion at September 30, 2021, compared to $1.03 billion at June 30, 2021, and $959.0 million at September 30, 2020. The increase in stockholders’ equity from the prior year was primarily due to net earnings. The Company also completed the repurchase of 206,285 common shares for $6.0 million during the third quarter of 2021. At September 30, 2021, 1,628,149 common shares remained available for repurchase under the Company’s existing authorization.

Dividend to be paid November 19

The Board of Directors declared a quarterly cash dividend of $0.28 per common share payable November 19, 2021, to shareholders of record at the close of business on November 12, 2021. The dividend represents an annual dividend of 3.44 percent based on the Premier common stock closing price on October 27, 2021. Premier has approximately 36,978,000 common shares outstanding.

Conference call

Premier will host a conference call at 11:00 a.m. ET on Friday, October 29, 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/pfc211029.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, the Form 10-K/A filed September 28, 2021 and any further amendments thereto. All forward-looking statements made in this presentation are based on information presently available to the management of Premier and speak only as of the date on which they are made. We assume no obligation to update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as may be required by law. As required by U.S. GAAP, Premier will evaluate the impact of subsequent events through the issuance date of its September 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.
 

September 30,

 

December 31,

(in thousands)

2021

 

2020

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

$

63,480

 

$

79,593

 

Interest-bearing deposits

 

51,614

 

 

79,673

 

 

115,094

 

 

159,266

 

 
Available-for sale, carried at fair value

 

1,250,087

 

 

736,654

 

Trading securities, carried at fair value

 

12,965

 

 

1,090

 

Securities investments

 

1,263,052

 

 

737,744

 

 
Loans

 

5,269,566

 

 

5,491,240

 

Allowance for credit losses - loans

 

(73,217

)

 

(82,079

)

Loans, net

 

5,196,349

 

 

5,409,161

 

Loans held for sale

 

178,490

 

 

221,616

 

Mortgage servicing rights

 

19,105

 

 

13,153

 

Accrued interest receivable

 

22,994

 

 

25,434

 

Federal Home Loan Bank stock

 

11,585

 

 

16,026

 

Bank Owned Life Insurance

 

166,866

 

 

144,784

 

Office properties and equipment

 

56,073

 

 

58,665

 

Real estate and other assets held for sale

 

261

 

 

343

 

Goodwill

 

317,948

 

 

317,948

 

Core deposit and other intangibles

 

25,612

 

 

30,337

 

Other assets

 

94,889

 

 

77,257

 

Total Assets

$

7,468,318

 

$

7,211,734

 

 
Liabilities and Stockholders’ Equity
Non-interest-bearing deposits

$

1,618,769

 

$

1,597,262

 

Interest-bearing deposits

 

4,629,889

 

 

4,450,579

 

Total deposits

 

6,248,658

 

 

6,047,841

 

Advances from FHLB and PPPLF

 

-

 

 

-

 

Notes payable and other interest-bearing liabilities

 

18,812

 

 

-

 

Subordinated debentures

 

84,944

 

 

84,860

 

Advance payments by borrowers for tax and insurance

 

19,495

 

 

21,748

 

Reserve for credit losses - unfunded commitments

 

5,838

 

 

5,350

 

Other liabilities

 

58,702

 

 

69,659

 

Total Liabilities

 

6,436,449

 

 

6,229,458

 

Stockholders’ Equity
Preferred stock

 

-

 

 

-

 

Common stock, net

 

306

 

 

306

 

Additional paid-in-capital

 

690,783

 

 

689,390

 

Accumulated other comprehensive income (loss)

 

1,609

 

 

15,004

 

Retained earnings

 

428,518

 

 

356,414

 

Treasury stock, at cost

 

(89,347

)

 

(78,838

)

Total Stockholders’ Equity

 

1,031,869

 

 

982,276

 

Total Liabilities and Stockholders’ Equity

$

7,468,318

 

$

7,211,734

 

Consolidated Statements of Income (Unaudited)
Premier Financial Corp.

Three Months Ended

 

Nine Months Ended

September 30,

 

September 30,

(in thousands, except per share amounts)

2021

 

2020

 

2021

 

2020

Interest Income:
Loans

$

55,443

 

$

57,134

 

$

168,781

 

$

167,390

Investment securities

 

5,325

 

 

2,848

 

 

13,999

 

 

8,489

Interest-bearing deposits

 

33

 

 

82

 

 

142

 

 

391

FHLB stock dividends

 

60

 

 

95

 

 

175

 

 

861

Total interest income

 

60,861

 

 

60,159

 

 

183,097

 

 

177,131

Interest Expense:
Deposits

 

3,144

 

 

6,555

 

 

10,867

 

 

21,761

FHLB advances and other

 

11

 

 

168

 

 

23

 

 

1,690

Subordinated debentures

 

671

 

 

158

 

 

2,040

 

 

610

Notes Payable

 

-

 

 

7

 

 

-

 

 

32

Total interest expense

 

3,826

 

 

6,888

 

 

12,930

 

 

24,093

Net interest income

 

57,035

 

 

53,271

 

 

170,167

 

 

153,038

Provision (benefit) for credit losses - loans

 

1,594

 

 

3,658

 

 

(9,549

)

 

49,312

Provision (benefit) for credit losses - unfunded commitments

 

226

 

 

(864

)

 

488

 

 

1,702

Total provision (benefit) for credit losses

 

1,820

 

 

2,794

 

 

(9,061

)

 

51,014

Net interest income after provision

 

55,215

 

 

50,477

 

 

179,228

 

 

102,024

Non-interest Income:
Service fees and other charges

 

6,067

 

 

4,805

 

 

17,817

 

 

15,601

Mortgage banking income

 

6,175

 

 

12,047

 

 

18,865

 

 

22,763

Gain on sale of non-mortgage loans

 

-

 

 

-

 

 

-

 

 

234

Gain (loss) on sale of available for sale securities

 

233

 

 

1,466

 

 

2,218

 

 

1,464

Gain (loss) on trading securities

 

20

 

 

14

 

 

822

 

 

14

Insurance commissions

 

3,461

 

 

3,715

 

 

12,401

 

 

12,875

Wealth management income

 

1,321

 

 

1,458

 

 

4,644

 

 

4,351

Income from Bank Owned Life Insurance

 

947

 

 

841

 

 

2,975

 

 

2,460

Other non-interest income

 

90

 

 

654

 

 

2,391

 

 

2,251

Total Non-interest Income

 

18,314

 

 

25,000

 

 

62,133

 

 

62,013

Non-interest Expense:
Compensation and benefits

 

23,355

 

 

20,172

 

 

66,399

 

 

57,331

Occupancy

 

3,693

 

 

3,989

 

 

11,642

 

 

11,848

FDIC insurance premium

 

695

 

 

1,469

 

 

2,115

 

 

2,372

Financial institutions tax

 

1,187

 

 

1,116

 

 

3,553

 

 

3,066

Data processing

 

3,387

 

 

4,289

 

 

10,103

 

 

11,135

Amortization of intangibles

 

1,528

 

 

1,726

 

 

4,725

 

 

4,781

Acquisition related charges

 

-

 

 

3,711

 

 

-

 

 

17,295

Other non-interest expense

 

5,200

 

 

7,091

 

 

17,686

 

 

16,028

Total Non-interest Expense

 

39,045

 

 

43,563

 

 

116,223

 

 

123,856

Income (loss) before income taxes

 

34,484

 

 

31,914

 

 

125,138

 

 

40,181

Income tax expense (benefit)

 

6,124

 

 

6,259

 

 

24,397

 

 

7,951

Net Income (Loss)

$

28,360

 

$

25,655

 

$

100,741

 

$

32,230

 
 
Earnings (loss) per common share:
Basic

$

0.76

 

$

0.69

 

$

2.70

 

$

0.91

Diluted

$

0.76

 

$

0.69

 

$

2.70

 

$

0.91

 
Average Shares Outstanding:
Basic

 

37,100

 

 

37,297

 

 

37,226

 

 

35,423

Diluted

 

37,185

 

 

37,334

 

 

37,311

 

 

35,482

 
Premier Financial Corp.
Financial Summary and Comparison (Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
(dollars in thousands, except per share data)

2021

2020

% change

 

2021

2020

% change

Summary of Operations
 
Tax-equivalent interest income (2)

$

61,117

 

$

60,418

 

1.2

 

$

183,860

 

$

177,898

 

3.4

 

Interest expense

 

3,826

 

 

6,888

 

(44.5

)

 

12,930

 

 

24,093

 

(46.3

)

Tax-equivalent net interest income (2)

 

57,291

 

 

53,530

 

7.0

 

 

170,930

 

 

153,805

 

11.1

 

Provision (benefit) for credit losses

 

1,820

 

 

2,794

 

(34.9

)

 

(9,061

)

 

51,014

 

(117.8

)

Core provision (benefit) for credit losses (4)

 

1,820

 

 

2,794

 

(34.9

)

 

(9,061

)

 

25,065

 

(136.2

)

Investment securities gains (losses)

 

253

 

 

1,480

 

NM

 

 

3,040

 

 

1,478

 

NM

 

Non-interest income (excluding securities gains/losses)

 

18,061

 

 

23,520

 

(23.2

)

 

59,093

 

 

60,535

 

(2.4

)

Non-interest expense

 

39,045

 

 

43,563

 

(10.4

)

 

116,223

 

 

123,856

 

(6.2

)

Core non-interest expense (4)

 

39,045

 

 

38,445

 

1.6

 

 

116,223

 

 

105,154

 

10.5

 

Income tax expense (benefit)

 

6,124

 

 

6,259

 

(2.2

)

 

24,397

 

 

7,951

 

206.8

 

Net income (loss)

 

28,360

 

 

25,655

 

10.5

 

 

100,741

 

 

32,230

 

212.6

 

Core net income (4)

 

28,360

 

 

28,587

 

(0.8

)

 

100,741

 

 

66,771

 

50.9

 

Tax equivalent adjustment (2)

 

256

 

 

259

 

(1.2

)

 

763

 

 

767

 

(0.5

)

At Period End
Assets

 

7,468,318

 

 

6,974,953

 

7.1

 

Earning assets

 

6,774,307

 

 

6,340,132

 

6.8

 

Loans

 

5,269,566

 

 

5,470,548

 

(3.7

)

Allowance for credit losses - loans

 

73,217

 

 

88,917

 

(17.7

)

Deposits

 

6,248,658

 

 

5,795,757

 

7.8

 

Stockholders’ equity

 

1,031,869

 

 

959,025

 

7.6

 

Average Balances
Assets

 

7,529,100

 

 

6,935,783

 

8.6

 

 

7,473,203

 

 

6,437,886

 

16.1

 

Earning assets

 

6,773,021

 

 

6,211,267

 

9.0

 

 

6,730,807

 

 

5,787,134

 

16.3

 

Loans

 

5,416,696

 

 

5,555,621

 

(2.5

)

 

5,513,285

 

 

5,095,167

 

8.2

 

Deposits and interest-bearing liabilities

 

6,422,455

 

 

5,901,652

 

8.8

 

 

6,384,654

 

 

5,457,179

 

17.0

 

Deposits

 

6,317,229

 

 

5,738,006

 

10.1

 

 

6,282,862

 

 

5,162,952

 

21.7

 

Stockholders’ equity

 

1,020,206

 

 

927,506

 

10.0

 

 

1,000,047

 

 

881,932

 

13.4

 

Stockholders’ equity / assets

 

13.55

%

 

13.37

%

1.3

 

 

13.38

%

 

13.70

%

(2.3

)

Per Common Share Data
Net Income (Loss)
Basic

$

0.76

 

$

0.69

 

10.1

 

$

2.70

 

$

0.91

 

196.7

 

Diluted

 

0.76

 

 

0.69

 

10.1

 

 

2.70

 

 

0.91

 

196.7

 

Core diluted (4)

 

0.76

 

 

0.77

 

(1.3

)

 

2.70

 

 

1.88

 

43.6

 

Dividends Paid

 

0.27

 

 

0.22

 

22.7

 

 

0.77

 

 

0.66

 

16.7

 

Market Value:
High

$

32.72

 

$

21.24

 

54.0

 

$

35.90

 

$

32.05

 

12.0

 

Low

 

25.80

 

 

14.74

 

75.0

 

 

22.23

 

 

10.98

 

102.5

 

Close

 

31.84

 

 

15.58

 

104.4

 

 

31.84

 

 

15.58

 

104.4

 

Common Book Value

 

27.90

 

 

25.71

 

8.5

 

 

27.90

 

 

25.71

 

8.5

 

Tangible Common Book Value (1)

 

18.61

 

 

16.33

 

14.0

 

 

18.61

 

 

16.33

 

14.0

 

Shares outstanding, end of period (000s)

 

36,978

 

 

37,297

 

(0.9

)

 

36,978

 

 

37,297

 

(0.9

)

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

 

3.38

%

 

3.45

%

(2.0

)

 

3.39

%

 

3.54

%

(4.2

)

Return on average assets

 

1.49

%

 

1.49

%

0.3

 

 

1.80

%

 

0.67

%

169.0

 

Core return on average assets (4)

 

1.49

%

 

1.64

%

(8.9

)

 

1.80

%

 

1.39

%

30.1

 

Return on average equity

 

11.03

%

 

11.12

%

(0.8

)

 

13.47

%

 

4.88

%

176.0

 

Core return on average equity (4)

 

11.03

%

 

12.26

%

(10.1

)

 

13.47

%

 

10.11

%

33.2

 

Return on average tangible equity

 

16.65

%

 

17.71

%

(6.0

)

 

20.59

%

 

7.70

%

167.6

 

Core return on average tangible equity (4)

 

16.65

%

 

19.73

%

(15.6

)

 

20.59

%

 

15.99

%

28.8

 

Efficiency ratio (3)

 

51.82

%

 

56.54

%

(8.4

)

 

50.53

%

 

57.78

%

(12.6

)

Core efficiency ratio (4)

 

51.82

%

 

49.90

%

3.8

 

 

50.53

%

 

49.06

%

3.0

 

Effective tax rate

 

17.76

%

 

19.61

%

(9.4

)

 

19.50

%

 

19.79

%

(1.5

)

Dividend payout ratio (core)

 

35.53

%

 

28.57

%

24.3

 

 

28.52

%

 

35.11

%

(18.8

)

 
Note: Year-to-date 2020 results include eight months of operations from UCFC compared to nine 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

 

Nine Months Ended

September 30,

 

September 30,

Mortgage Banking Summary

2021

2020

 

2021

2020

Revenue from sales and servicing of mortgage loans:
Mortgage banking gains, net

$

5,353

 

$

13,781

 

$

13,663

 

$

30,213

 

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

 

1,861

 

 

1,898

 

 

5,665

 

 

5,379

 

Amortization of mortgage servicing rights

 

(1,822

)

 

(1,959

)

 

(6,119

)

 

(5,302

)

Mortgage servicing rights valuation adjustments

 

783

 

 

(1,673

)

 

5,656

 

 

(7,527

)

 

822

 

 

(1,734

)

 

5,202

 

 

(7,450

)

Total revenue from sale and servicing of mortgage loans

$

6,175

 

$

12,047

 

$

18,865

 

$

22,763

 

 
Mortgage servicing rights:
Balance at beginning of period

$

21,682

 

$

21,034

 

$

21,666

 

$

10,801

 

Loans sold, servicing retained

 

2,103

 

 

2,463

 

 

6,415

 

 

6,292

 

Mortgage servicing rights acquired

 

-

 

 

-

 

 

-

 

 

9,747

 

Amortization

 

(1,822

)

 

(1,959

)

 

(6,119

)

 

(5,302

)

Carrying value before valuation allowance at end of period

 

21,963

 

 

21,538

 

 

21,962

 

 

21,538

 

Valuation allowance:
Balance at beginning of period

 

(3,641

)

 

(6,388

)

 

(8,513

)

 

(534

)

Impairment recovery (charges)

 

783

 

 

(1,673

)

 

5,656

 

 

(7,527

)

Balance at end of period

 

(2,858

)

 

(8,061

)

 

(2,857

)

 

(8,061

)

Net carrying value at end of period

$

19,105

 

$

13,477

 

$

19,105

 

$

13,477

 

 
COVID-19 Deferrals Update 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020 6/30/2020
Commercial loan deferrals

$

-

 

$

-

 

$

32,370

 

$

46,038

 

$

434,554

 

$

739,632

 

% of commercial loans

 

0.0

%

 

0.0

%

 

0.8

%

 

1.2

%

 

11.4

%

 

19.7

%

% of total loans

 

0.0

%

 

0.0

%

 

0.6

%

 

0.8

%

 

7.9

%

 

13.5

%

Retail loan deferrals

$

-

 

$

13

 

$

3,414

 

$

7,412

 

$

48,187

 

$

73,266

 

% of retail loans

 

0.0

%

 

0.0

%

 

0.2

%

 

0.4

%

 

2.9

%

 

4.3

%

% of total loans

 

0.0

%

 

0.0

%

 

0.1

%

 

0.1

%

 

0.9

%

 

1.3

%

Total loan deferrals

$

-

 

$

13

 

$

35,784

 

$

53,450

 

$

482,741

 

$

812,898

 

% of total loans

 

0.0

%

 

0.0

%

 

0.7

%

 

1.0

%

 

8.8

%

 

14.9

%

 
Note: Year-to-date 2020 results include eight months of operations from UCFC compared to nine for comparable periods in 2021.
 
Premier Financial Corp.
Yield Analysis
Three Months Ended September 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

$

5,416,696

$

55,444

4.09

%

$

5,555,621

$

57,158

4.12

%

Securities

 

1,273,148

 

5,580

1.75

%

 

552,458

 

3,083

2.23

% (3)

Interest Bearing Deposits

 

71,276

 

33

0.19

%

 

65,551

 

82

0.50

%

FHLB stock

 

11,901

 

60

2.02

%

 

37,637

 

95

1.01

%

Total interest-earning assets

 

6,773,021

 

61,117

3.61

%

 

6,211,267

 

60,418

3.89

%

Non-interest-earning assets

 

756,079

 

724,516

Total assets

$

7,529,100

$

6,935,783

Deposits and Interest-bearing liabilities:
Interest bearing deposits

$

4,649,462

$

3,144

0.27

%

$

4,285,287

$

6,555

0.61

%

FHLB advances and other

 

20,098

 

11

0.22

%

 

120,417

 

168

0.56

%

Subordinated debentures

 

84,924

 

671

3.16

%

 

36,613

 

158

1.73

%

Notes payable

 

204

 

-

0.75

%

 

6,616

 

7

0.42

%

Total interest-bearing liabilities

 

4,754,688

 

3,826

0.32

%

 

4,448,933

 

6,888

0.62

%

Non-interest bearing deposits

 

1,667,767

 

-

-

 

 

1,452,719

 

-

-

 

Total including non-interest-bearing deposits

 

6,422,455

 

3,826

0.24

%

 

5,901,652

 

6,888

0.47

%

Other non-interest-bearing liabilities

 

86,439

 

106,625

Total liabilities

 

6,508,894

 

6,008,277

Stockholders' equity

 

1,020,206

 

927,506

Total liabilities and stockholders' equity

$

7,529,100

$

6,935,783

Net interest income; interest rate spread

$

57,291

3.29

%

$

53,530

3.27

%

Net interest margin (4)

3.38

%

3.45

%

Average interest-earning assets to average interest bearing liabilities

142

%

140

%

 
Nine Months Ended September 30,

2021

2020

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

$

5,513,285

$

168,810

4.08

%

$

5,095,167

$

167,463

4.38

%

Securities

 

1,098,478

 

14,733

1.79

%

 

514,979

 

9,183

2.38

% (3)

Interest Bearing Deposits

 

107,381

 

142

0.18

%

 

131,384

 

391

0.40

%

FHLB stock

 

11,663

 

175

2.00

%

 

45,604

 

861

2.52

%

Total interest-earning assets

 

6,730,807

 

183,860

3.64

%

 

5,787,134

 

177,898

4.10

%

Non-interest-earning assets

 

742,396

 

650,752

Total assets

$

7,473,203

$

6,437,886

Deposits and Interest-bearing liabilities:
Interest bearing deposits

$

4,612,354

$

10,867

0.31

%

$

3,929,881

$

21,761

0.74

%

FHLB advances and other

 

16,828

 

23

0.18

%

 

249,889

 

1,690

0.90

%

Subordinated debentures

 

84,895

 

2,040

3.20

%

 

36,261

 

610

2.24

%

Notes payable

 

69

 

-

0.75

%

 

8,077

 

32

0.53

%

Total interest-bearing liabilities

 

4,714,146

 

12,930

0.37

%

 

4,224,108

 

24,093

0.76

%

Non-interest bearing deposits

 

1,670,508

 

-

-

 

 

1,233,071

 

-

-

 

Total including non-interest-bearing deposits

 

6,384,654

 

12,930

0.27

%

 

5,457,179

 

24,093

0.59

%

Other non-interest-bearing liabilities

 

88,502

 

98,775

Total liabilities

 

6,473,156

 

5,555,954

Stockholders' equity

 

1,000,047

 

881,932

Total liabilities and stockholders' equity

$

7,473,203

$

6,437,886

Net interest income; interest rate spread

$

170,930

3.27

%

$

153,805

3.34

%

Net interest margin (4)

3.39

%

3.54

%

Average interest-earning assets to average interest bearing liabilities

143

%

137

%

 
Note: Year-to-date 2020 results include eight months of operations from UCFC compared to nine 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)

3rd Qtr 2021

2nd Qtr 2021

1st Qtr 2021

4th Qtr 2020

3rd Qtr 2020

Summary of Operations
Tax-equivalent interest income (1)

$

61,117

 

$

61,134

 

$

61,609

 

$

61,067

 

$

60,418

 

Interest expense

 

3,826

 

 

4,245

 

 

4,859

 

 

5,849

 

 

6,888

 

Tax-equivalent net interest income (1)

 

57,291

 

 

56,889

 

 

56,750

 

 

55,218

 

 

53,530

 

Provision (benefit) for credit losses

 

1,820

 

 

(3,919

)

 

(6,963

)

 

(6,764

)

 

2,794

 

Core provision (benefit) for credit losses (3)

 

1,820

 

 

(3,919

)

 

(6,963

)

 

(6,764

)

 

2,794

 

Investment securities gains (losses)

 

253

 

 

661

 

 

2,126

 

 

76

 

 

1,480

 

Non-interest income (excluding securities gains/losses)

 

18,061

 

 

16,884

 

 

24,149

 

 

18,594

 

 

23,520

 

Non-interest expense

 

39,045

 

 

38,375

 

 

38,803

 

 

41,313

 

 

43,563

 

Core non-interest expense (3)

 

39,045

 

 

38,375

 

 

38,803

 

 

39,123

 

 

38,445

 

Income tax expense (benefit)

 

6,124

 

 

8,323

 

 

9,952

 

 

8,240

 

 

6,259

 

Net income (loss)

 

28,360

 

 

31,385

 

 

40,996

 

 

30,848

 

 

25,655

 

Core net income (3)

 

28,360

 

 

31,385

 

 

40,996

 

 

32,577

 

 

28,587

 

Tax equivalent adjustment (1)

 

256

 

 

270

 

 

237

 

 

251

 

 

259

 

At Period End
Total assets

$

7,468,318

 

$

7,593,720

 

$

7,530,462

 

$

7,211,734

 

$

6,974,953

 

Earning assets

 

6,774,307

 

 

6,920,008

 

 

6,852,357

 

 

6,546,299

 

 

6,340,132

 

Loans

 

5,269,566

 

 

5,348,400

 

 

5,459,683

 

 

5,491,240

 

 

5,470,548

 

Allowance for loan losses

 

73,217

 

 

71,367

 

 

74,754

 

 

82,079

 

 

88,917

 

Deposits

 

6,248,658

 

 

6,291,459

 

 

6,351,919

 

 

6,047,841

 

 

5,795,757

 

Stockholders’ equity

 

1,031,869

 

 

1,027,703

 

 

998,186

 

 

982,276

 

 

959,025

 

Stockholders’ equity / assets

 

13.82

%

 

13.53

%

 

13.26

%

 

13.62

%

 

13.75

%

Goodwill

 

317,948

 

 

317,948

 

 

317,948

 

 

317,948

 

 

317,948

 

Average Balances
Total assets

$

7,529,100

 

$

7,549,531

 

$

7,338,886

 

$

7,089,060

 

$

6,935,783

 

Earning assets

 

6,773,021

 

 

6,806,275

 

 

6,611,343

 

 

6,363,306

 

 

6,211,267

 

Loans

 

5,416,696

 

 

5,495,782

 

 

5,629,715

 

 

5,609,116

 

 

5,555,621

 

Deposits and interest-bearing liabilities

 

6,422,455

 

 

6,454,731

 

 

6,275,160

 

 

6,044,049

 

 

5,901,652

 

Deposits

 

6,317,229

 

 

6,339,673

 

 

6,190,292

 

 

5,956,550

 

 

5,738,006

 

Stockholders’ equity

 

1,020,206

 

 

1,006,757

 

 

972,653

 

 

946,223

 

 

927,506

 

Stockholders’ equity / assets

 

13.55

%

 

13.34

%

 

13.25

%

 

13.35

%

 

13.37

%

Per Common Share Data
Net Income (Loss):
Basic

$

0.76

 

$

0.84

 

$

1.10

 

$

0.83

 

$

0.69

 

Diluted

 

0.76

 

 

0.84

 

 

1.10

 

 

0.82

 

 

0.69

 

Core diluted (3)

 

0.76

 

 

0.84

 

 

1.10

 

 

0.87

 

 

0.77

 

Dividends Paid

 

0.27

 

 

0.26

 

 

0.24

 

 

0.22

 

 

0.22

 

Market Value:
High

$

32.72

 

$

33.97

 

$

35.90

 

$

23.49

 

$

21.24

 

Low

 

25.80

 

 

27.76

 

 

22.23

 

 

14.90

 

 

14.74

 

Close

 

31.84

 

 

28.41

 

 

33.26

 

 

23.00

 

 

15.58

 

Common Book Value

 

27.90

 

 

27.64

 

 

26.78

 

 

26.34

 

 

25.71

 

Shares outstanding, end of period (000s)

 

36,978

 

 

37,178

 

 

37,275

 

 

37,291

 

 

37,297

 

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

 

3.38

%

 

3.34

%

 

3.43

%

 

3.47

%

 

3.47

%

Return on average assets

 

1.49

%

 

1.67

%

 

2.27

%

 

1.73

%

 

1.49

%

Core return on average assets (3)

 

1.49

%

 

1.67

%

 

2.27

%

 

1.83

%

 

1.64

%

Return on average equity

 

11.03

%

 

12.50

%

 

17.09

%

 

12.97

%

 

11.12

%

Core return on average equity (3)

 

11.03

%

 

12.50

%

 

17.09

%

 

13.70

%

 

12.26

%

Return on average tangible equity

 

16.65

%

 

19.05

%

 

26.60

%

 

20.37

%

 

17.71

%

Core return on average tangible equity (3)

 

16.65

%

 

19.05

%

 

26.60

%

 

21.51

%

 

19.73

%

Efficiency ratio (2)

 

51.82

%

 

52.02

%

 

47.96

%

 

55.97

%

 

56.54

%

Core efficiency ratio (3)

 

51.82

%

 

52.02

%

 

47.96

%

 

53.00

%

 

49.90

%

Effective tax rate

 

17.76

%

 

20.96

%

 

19.53

%

 

21.08

%

 

19.61

%

Common dividend payout ratio (core)

 

35.53

%

 

30.95

%

 

21.82

%

 

25.29

%

 

28.57

%

 
(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) 3rd Qtr 2021 2nd Qtr 2021 1st Qtr 2021 4th Qtr 2020 3rd Qtr 2020
Loan Portfolio Composition
One to four family residential real estate

$

1,129,877

 

$

1,138,433

 

$

1,168,559

 

$

1,201,051

 

$

1,194,940

 

Construction

 

885,586

 

 

830,822

 

 

749,190

 

 

667,649

 

 

580,060

 

Commercial real estate

 

2,389,759

 

 

2,405,653

 

 

2,402,067

 

 

2,383,001

 

 

2,328,944

 

Commercial

 

952,729

 

 

1,051,972

 

 

1,172,910

 

 

1,202,353

 

 

1,263,565

 

Consumer finance

 

125,163

 

 

118,526

 

 

117,539

 

 

120,729

 

 

128,995

 

Home equity and improvement

 

264,140

 

 

261,842

 

 

257,764

 

 

272,701

 

 

281,010

 

Total loans

 

5,747,254

 

 

5,807,248

 

 

5,868,029

 

 

5,847,484

 

 

5,777,514

 

Less:
Undisbursed loan funds

 

481,434

 

 

458,156

 

 

405,983

 

 

355,065

 

 

300,174

 

Deferred loan origination fees

 

(3,746

)

 

692

 

 

2,363

 

 

1,179

 

 

6,792

 

Allowance for credit losses - loans

 

73,217

 

 

71,367

 

 

74,754

 

 

82,079

 

 

88,917

 

Net Loans

$

5,196,349

 

$

5,277,033

 

$

5,384,929

 

$

5,409,161

 

$

5,381,631

 

 
Allowance for credit losses - loans
Beginning allowance

$

71,367

 

$

74,754

 

$

82,079

 

$

88,917

 

$

88,555

 

Provision (benefit) for credit losses - loans

 

1,594

 

 

(3,631

)

 

(7,514

)

 

(6,158

)

 

3,658

 

Net recoveries (charge-offs)

 

256

 

 

244

 

 

189

 

 

(680

)

 

(3,296

)

Ending allowance

$

73,217

 

$

71,367

 

$

74,754

 

$

82,079

 

$

88,917

 

 
Credit Quality
Total non-performing loans (1)

$

59,865

 

$

41,296

 

$

49,298

 

$

51,682

 

$

48,360

 

Real estate owned (REO)

 

261

 

 

45

 

 

53

 

 

343

 

 

521

 

Total non-performing assets (2)

$

60,126

 

$

41,341

 

$

49,351

 

$

52,025

 

$

48,881

 

Net charge-offs (recoveries)

 

(256

)

 

(244

)

 

(189

)

 

680

 

 

3,296

 

 
Restructured loans, accruing (3)

 

6,503

 

 

5,939

 

 

6,068

 

 

7,173

 

 

8,499

 

 
Allowance for credit losses - loans / loans

 

1.39

%

 

1.33

%

 

1.37

%

 

1.49

%

 

1.63

%

Allowance for credit losses - loans / non-performing assets

 

121.77

%

 

172.63

%

 

151.47

%

 

157.77

%

 

181.90

%

Allowance for credit losses - loans / non-performing loans

 

122.30

%

 

172.82

%

 

151.64

%

 

158.82

%

 

183.90

%

Non-performing assets / loans plus REO

 

1.14

%

 

0.77

%

 

0.90

%

 

0.95

%

 

0.89

%

Non-performing assets / total assets

 

0.81

%

 

0.54

%

 

0.66

%

 

0.73

%

 

0.70

%

Net charge-offs / average loans (annualized)

 

-0.02

%

 

-0.02

%

 

-0.01

%

 

0.05

%

 

0.24

%

 
Deposit Balances
Non-interest-bearing demand deposits

$

1,618,769

 

$

1,649,664

 

$

1,728,895

 

$

1,597,262

 

$

1,436,807

 

Interest-bearing demand deposits and money market

 

2,962,032

 

 

2,890,769

 

 

2,806,271

 

 

2,627,669

 

 

2,511,263

 

Savings deposits

 

786,929

 

 

777,862

 

 

761,899

 

 

700,480

 

 

674,354

 

Retail time deposits less than $250,000

 

692,224

 

 

720,317

 

 

842,624

 

 

912,006

 

 

975,658

 

Retail time deposits greater than $250,000

 

188,704

 

 

252,847

 

 

212,230

 

 

210,424

 

 

197,675

 

Total deposits

$

6,248,658

 

$

6,291,459

 

$

6,351,919

 

$

6,047,841

 

$

5,795,757

 

 
(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
 
September 30, 2021
One to four family residential real estate

$

1,129,877

$

1,115,076

$

5,663

0.5

%

$

9,138

0.8

%

Construction

 

885,586

 

884,265

 

1,321

0.1

%

 

-

0.0

%

Commercial real estate

 

2,389,759

 

2,367,760

 

146

0.0

%

 

21,853

0.9

%

Commercial

 

952,729

 

928,321

 

442

0.0

%

 

23,966

2.5

%

Consumer finance

 

125,163

 

121,580

 

1,792

1.4

%

 

1,791

1.4

%

Home equity and improvement

 

264,140

 

259,175

 

1,848

0.7

%

 

3,117

1.2

%

Total loans

$

5,747,254

$

5,676,177

$

11,212

0.2

%

$

59,865

1.0

%

 
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

%

 
September 30, 2020
One to four family residential real estate

$

1,194,940

$

1,173,175

$

10,562

0.9

%

$

11,203

0.9

%

Construction

 

580,060

 

578,110

 

1,587

0.3

%

 

363

0.1

%

Commercial real estate

 

2,328,944

 

2,305,223

 

703

0.0

%

 

23,018

1.0

%

Commercial

 

1,263,565

 

1,253,474

 

212

0.0

%

 

9,879

0.8

%

Consumer finance

 

128,995

 

125,260

 

2,682

2.1

%

 

1,053

0.8

%

Home equity and improvement

 

281,010

 

273,041

 

5,125

1.8

%

 

2,844

1.0

%

Total loans

$

5,777,514

$

5,708,283

$

20,871

0.4

%

$

48,360

0.8

%

 
Loan Risk Ratings Information
(dollars in thousands) Total Balance Pass Rated Special Mention % of
Total
Classified % of
Total
 
September 30, 2021
One to four family residential real estate

$

1,117,055

$

1,107,787

$

1,315

0.1

%

$

7,953

0.7

%

Construction

 

885,586

 

866,054

 

19,532

2.2

%

 

-

0.0

%

Commercial real estate

 

2,379,734

 

2,220,881

 

117,068

4.9

%

 

41,785

1.8

%

Commercial

 

944,202

 

903,626

 

20,474

2.2

%

 

20,102

2.1

%

Consumer finance

 

124,525

 

122,956

 

-

0.0

%

 

1,569

1.3

%

Home equity and improvement

 

260,408

 

258,575

 

-

0.0

%

 

1,833

0.7

%

PCD loans

 

35,744

 

18,793

 

102

0.3

%

 

16,849

47.1

%

Total loans

$

5,747,254

$

5,498,672

$

158,491

2.8

%

$

90,091

1.6

%

 
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

%

 
September 30, 2020
One to four family residential real estate

$

1,179,783

$

1,176,565

$

268

0.0

%

$

2,950

0.3

%

Construction

 

580,060

 

556,918

 

23,142

4.0

%

 

-

0.0

%

Commercial real estate

 

2,304,147

 

2,164,495

 

108,011

4.7

%

 

31,641

1.4

%

Commercial

 

1,234,158

 

1,200,581

 

24,618

2.0

%

 

8,959

0.7

%

Consumer finance

 

128,057

 

127,937

 

-

0.0

%

 

120

0.1

%

Home equity and improvement

 

276,246

 

275,831

 

-

0.0

%

 

415

0.2

%

PCD loans

 

75,063

 

28,866

 

11,443

15.2

%

 

34,754

46.3

%

Total loans

$

5,777,514

$

5,531,193

$

167,482

2.9

%

$

78,839

1.4

%

 
Premier Financial Corp.
Non-GAAP Reconciliations
Nine months ended
(In thousands, except per share and ratio data) 9/30/21 9/30/20 3rd Qtr 2021 2nd Qtr 2021 1st Qtr 2021 4th Qtr 2020 3rd Qtr 2020
Acquisition related charges (pre-tax)

$

-

 

$

17,295

 

$

-

 

$

-

 

$

-

 

$

2,190

 

$

3,711

 

Less: Tax benefit of acquisition related charges

 

-

 

 

3,254

 

 

-

 

 

-

 

 

-

 

 

460

 

 

779

 

Acquisition related charges (after-tax)

$

-

 

$

14,041

 

$

-

 

$

-

 

$

-

 

$

1,730

 

$

2,932

 

 
Total non-interest expenses

$

116,223

 

$

123,856

 

$

39,045

 

$

38,375

 

$

38,803

 

$

41,313

 

$

43,563

 

Less: Acquisition related charges (pre-tax)

 

-

 

 

17,295

 

 

-

 

 

-

 

 

-

 

 

2,190

 

 

3,711

 

Less: FHLB prepayment charges(1)

 

-

 

 

1,407

 

 

-

 

 

-

 

 

-

 

 

-

 

 

1,407

 

Core non-interest expenses

$

116,223

 

$

105,154

 

$

39,045

 

$

38,375

 

$

38,803

 

$

39,123

 

$

38,445

 

 
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

$

(9,061

)

$

51,014

 

$

1,820

 

$

(3,919

)

$

(6,963

)

$

(6,764

)

$

2,794

 

Less: Acquisition related provision (pre-tax)

 

-

 

 

25,949

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Core provision (benefit) for credit losses

$

(9,061

)

$

25,065

 

$

1,820

 

$

(3,919

)

$

(6,963

)

$

(6,764

)

$

2,794

 

 
Non-interest income

$

62,133

 

$

62,013

 

$

18,314

 

$

17,545

 

$

26,275

 

$

18,669

 

$

25,000

 

Less: Securities gains (losses)

 

3,040

 

 

1,478

 

 

253

 

 

661

 

 

2,126

 

 

76

 

 

1,480

 

Non-interest income (excluding securities gains/losses)

$

59,093

 

$

60,535

 

$

18,061

 

$

16,884

 

$

24,149

 

$

18,593

 

$

23,520

 

 
Tax-equivalent net interest income

$

170,930

 

$

153,805

 

$

57,291

 

$

56,889

 

$

56,750

 

$

55,218

 

$

53,530

 

Non-interest income (excluding securities gains/losses)

 

59,093

 

 

60,535

 

 

18,061

 

 

16,884

 

 

24,149

 

 

18,593

 

 

23,520

 

Total revenues

 

230,023

 

 

214,340

 

 

75,352

 

 

73,773

 

 

80,899

 

 

73,811

 

 

77,050

 

Core non-interest expenses

$

116,223

 

$

105,154

 

$

39,045

 

$

38,375

 

$

38,803

 

$

39,123

 

$

38,445

 

Core efficiency ratio

 

50.53

%

 

49.06

%

 

51.82

%

 

52.02

%

 

47.96

%

 

53.00

%

 

49.90

%

 
Income (loss) before income taxes

$

125,138

 

$

40,181

 

$

34,484

 

$

39,708

 

$

50,948

 

$

39,087

 

$

31,914

 

Add: Provision (benefit) for credit losses

 

(9,061

)

 

51,014

 

 

1,820

 

 

(3,919

)

 

(6,963

)

 

(6,764

)

 

2,794

 

Pre-tax pre-provision income

 

116,077

 

 

91,195

 

 

36,304

 

 

35,789

 

 

43,985

 

 

32,323

 

 

34,708

 

Add: Acquisition related charges (pre-tax)

 

-

 

 

17,295

 

 

-

 

 

-

 

 

-

 

 

2,190

 

 

3,711

 

Core pre-tax pre-provision income

$

116,077

 

$

108,490

 

$

36,304

 

$

35,789

 

$

43,985

 

$

34,513

 

$

38,419

 

Average total assets

$

7,473,203

 

$

6,437,886

 

$

7,529,100

 

$

7,549,531

 

$

7,338,886

 

$

7,089,060

 

$

6,935,783

 

Core pre-tax pre-provision return on average assets

 

2.08

%

 

2.25

%

 

1.91

%

 

1.90

%

 

2.43

%

 

1.94

%

 

2.20

%

 
Net income (loss)

$

100,741

 

$

32,230

 

$

28,360

 

$

31,385

 

$

40,996

 

$

30,847

 

$

25,655

 

Add: Acquisition related provision (after-tax)

 

-

 

 

20,500

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Add: Acquisition related charges (after-tax)

 

-

 

 

14,041

 

 

-

 

 

-

 

 

-

 

 

1,730

 

 

2,932

 

Core net income

$

100,741

 

$

66,771

 

$

28,360

 

$

31,385

 

$

40,996

 

$

32,577

 

$

28,587

 

 
Diluted shares - Reported

 

37,311

 

 

35,482

 

 

37,185

 

 

37,358

 

 

37,357

 

 

37,350

 

 

37,334

 

Add: Dilutive shares for core net income

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Diluted shares - Core

 

37,311

 

 

35,482

 

 

37,185

 

 

37,358

 

 

37,357

 

 

37,350

 

 

37,334

 

Core diluted EPS

$

2.70

 

$

1.88

 

$

0.76

 

$

0.84

 

$

1.10

 

$

0.87

 

$

0.77

 

 
Average total assets

$

7,473,203

 

$

6,437,886

 

$

7,529,100

 

$

7,549,531

 

$

7,338,886

 

$

7,089,060

 

$

6,935,783

 

Core return on average assets

 

1.80

%

 

1.39

%

 

1.49

%

 

1.67

%

 

2.27

%

 

1.83

%

 

1.64

%

 
Average total equity

$

1,000,047

 

$

881,932

 

$

1,020,206

 

$

1,006,757

 

$

972,653

 

$

946,223

 

$

927,506

 

Core return on average equity

 

13.47

%

 

10.11

%

 

11.03

%

 

12.50

%

 

17.09

%

 

13.70

%

 

12.26

%

 
Average total tangible equity

$

654,072

 

$

557,829

 

$

675,875

 

$

660,785

 

$

624,996

 

$

602,495

 

$

576,457

 

Core return on average tangible equity

 

20.59

%

 

15.99

%

 

16.65

%

 

19.05

%

 

26.60

%

 

21.51

%

 

19.73

%

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

 

Contacts

Paul Nungester
EVP and CFO
419.785.8700
PNungester@yourpremierbank.com

Release Summary

Premier Financial Corp. Announces Solid Third Quarter Results Including Core Loan Growth and Net Interest Margin Expansion

Contacts

Paul Nungester
EVP and CFO
419.785.8700
PNungester@yourpremierbank.com