Premier Financial Corp. Announces Solid 2021 Results

Increases Quarterly Dividend
Increases Buyback Authorization

Fourth Quarter 2021 Highlights

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

Full Year 2021 Highlights

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

 

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

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

Business client support efforts

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

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

Quarterly results

Strong loan growth

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

Net interest income up compared to fourth quarter of 2020

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

Non-interest income down from fourth quarter of 2020

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

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

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

Non-interest expenses up from fourth quarter of 2020

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

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

Credit quality

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

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

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

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

Annual results

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

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

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

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

Total assets at $7.48 billion

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

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

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

Buybacks authorization

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

Dividend to be paid February 18

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

Conference call

Premier will host a conference call at 11:00 a.m. ET on Wednesday, January 26, 2022, to discuss the earnings results and business trends. The conference call may be accessed by calling 1-844-200-6205. Internet access to the call is also available (in listen-only mode) at the following URL: https://events.q4inc.com/attendee/417140500. The replay of the conference call will be available at www.PremierFinCorp.com for one year.

About Premier Financial Corp.

Premier Financial Corp. (Nasdaq: PFC), headquartered in Defiance, Ohio, is the holding company for Premier Bank and First Insurance Group. Premier Bank, headquartered in Youngstown, Ohio, operates 75 branches and 12 loan offices in Ohio, Michigan, Indiana, Pennsylvania and West Virginia (West Virginia office operates as Home Savings Bank) and serves clients through a team of wealth professionals dedicated to each community banking branch. First Insurance Group is a full-service insurance agency with ten offices in Ohio. For more information, visit the company’s website at PremierFinCorp.com.

Financial Statements and Highlights Follow-

Safe Harbor Statement

This document may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These statements may include, but are not limited to, statements regarding projections, forecasts, goals and plans of Premier Financial Corp. and its management, future movements of interests, loan or deposit production levels, future credit quality ratios, future strength in the market area, and growth projections. These statements do not describe historical or current facts and may be identified by words such as “intend,” “intent,” “believe,” “expect,” “estimate,” “target,” “plan,” “anticipate,” or similar words or phrases, or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “may,” “can,” or similar verbs. There can be no assurances that the forward-looking statements included in this presentation will prove to be accurate. In light of the significant uncertainties in the forward-looking statements, the inclusion of such information should not be regarded as a representation by Premier or any other persons, that our objectives and plans will be achieved. Forward-looking statements involve numerous risks and uncertainties, any one or more of which could affect Premier’s business and financial results in future periods and could cause actual results to differ materially from plans and projections. These risks and uncertainties include, but not limited to: impacts from the novel coronavirus (COVID-19) pandemic on the economy, financial markets, our customers, and our business and results of operation; changes in interest rates; disruptions in the mortgage market; risks and uncertainties inherent in general and local banking, insurance and mortgage conditions; political uncertainty; uncertainty in U.S. fiscal or monetary policy; uncertainty concerning or disruptions relating to tensions surrounding the current socioeconomic landscape; competitive factors specific to markets in which Premier operates; increasing competition for financial products from other financial institutions and nonbank financial technology companies; legislative or regulatory rulemaking or actions; capital market conditions; security breaches or unauthorized disclosure of confidential customer or Company information; interruptions in the effective operation of information and transaction processing systems of Premier or Premier’s vendors and service providers; failures or delays in integrating or adopting new technology; the impact of the cessation of LIBOR interest rates and implementation of a replacement rate; and other risks and uncertainties detailed from time to time in our Securities and Exchange Commission (SEC) filings, including our Annual Report on Form 10-K for the year ended December 31, 2020, the Form 10-K/A filed September 28, 2021 and any further amendments thereto. All forward-looking statements made in this presentation are based on information presently available to the management of Premier and speak only as of the date on which they are made. We assume no obligation to update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as may be required by law. As required by U.S. GAAP, Premier will evaluate the impact of subsequent events through the issuance date of its December 31, 2021, consolidated financial statements as part of its Annual Report on Form 10-K to be filed with the SEC. Accordingly, subsequent events could occur that may cause Premier to update its critical accounting estimates and to revise its financial information from that which is contained in this news release.

Non-GAAP Reporting Measures

We believe that net income, as defined by U.S. GAAP, is the most appropriate earnings measurement. However, we consider core net income and core pre-tax pre-provision income to be useful supplemental measures of our operating performance. We define core net income as net income excluding the after-tax impact of acquisition related charges. We define core pre-tax pre-provision income as pre-tax pre-provision income excluding the pre-tax impact of acquisition related charges. We believe that these metrics are useful supplemental measures of operating performance because investors and equity analysts may use these measures to compare the operating performance of the Company between periods or as compared to other financial institutions or other companies on a consistent basis without having to account for one-time acquisition related charges. Our supplemental reporting measures and similarly entitled financial measures are widely used by investors, equity and debt analysts and ratings agencies in the valuation, comparison, rating and investment recommendations of companies. Our management uses these financial measures to facilitate internal and external comparisons to historical operating results and in making operating decisions. Additionally, they are utilized by the Board of Directors to evaluate management. The supplemental reporting measures do not represent net income or cash flow provided from operating activities as determined in accordance with U.S. GAAP and should not be considered as alternative measures of profitability or liquidity. Finally, the supplemental reporting measures, as defined by us, may not be comparable to similarly entitled items reported by other financial institutions or other companies. Please see the exhibits for reconciliations of our supplemental reporting measures.

   
Consolidated Balance Sheets (Unaudited)
Premier Financial Corp.
   
 

December 31,

December 31,

(in thousands)  

2021

2020

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

$

54,858

 

$

79,593

 

Interest-bearing deposits  

 

106,708

 

 

79,673

 

 

 

161,566

 

 

159,266

 

   
Available-for sale, carried at fair value  

 

1,206,260

 

 

736,654

 

Trading securities, carried at fair value  

 

14,097

 

 

1,090

 

Securities investments  

 

1,220,357

 

 

737,744

 

   
Loans  

 

5,296,168

 

 

5,491,240

 

Allowance for credit losses - loans  

 

(66,468

)

 

(82,079

)

Loans, net  

 

5,229,700

 

 

5,409,161

 

Loans held for sale  

 

162,947

 

 

221,616

 

Mortgage servicing rights  

 

19,538

 

 

13,153

 

Accrued interest receivable  

 

20,767

 

 

25,434

 

Federal Home Loan Bank stock  

 

11,585

 

 

16,026

 

Bank Owned Life Insurance  

 

166,767

 

 

144,784

 

Office properties and equipment  

 

55,602

 

 

58,665

 

Real estate and other assets held for sale  

 

171

 

 

343

 

Goodwill  

 

317,948

 

 

317,948

 

Core deposit and other intangibles  

 

24,129

 

 

30,337

 

Other assets  

 

90,325

 

 

77,257

 

Total Assets  

$

7,481,402

 

$

7,211,734

 

   
Liabilities and Stockholders’ Equity  
Non-interest-bearing deposits  

$

1,724,772

 

$

1,597,262

 

Interest-bearing deposits  

 

4,557,279

 

 

4,450,579

 

Total deposits  

 

6,282,051

 

 

6,047,841

 

Advances from FHLB  

 

-

 

 

-

 

Notes payable and other interest-bearing liabilities  

 

-

 

 

-

 

Subordinated debentures  

 

84,976

 

 

84,860

 

Advance payments by borrowers for tax and insurance  

 

24,716

 

 

21,748

 

Reserve for credit losses - unfunded commitments  

 

5,031

 

 

5,350

 

Other liabilities  

 

61,132

 

 

69,659

 

Total Liabilities  

 

6,457,906

 

 

6,229,458

 

Stockholders’ Equity  
Preferred stock  

 

-

 

 

-

 

Common stock, net  

 

306

 

 

306

 

Additional paid-in-capital  

 

691,132

 

 

689,390

 

Accumulated other comprehensive income (loss)  

 

(3,428

)

 

15,004

 

Retained earnings  

 

443,517

 

 

356,414

 

Treasury stock, at cost  

 

(108,031

)

 

(78,838

)

Total Stockholders’ Equity  

 

1,023,496

 

 

982,276

 

Total Liabilities and Stockholders’ Equity  

$

7,481,402

 

$

7,211,734

 

Consolidated Statements of Income (Unaudited)
Premier Financial Corp.
 

Three Months Ended

 

Twelve Months Ended

 

December 31,

 

December 31,

(in thousands, except per share amounts)  

2021

 

2020

 

2021

 

2020

Interest Income:  
Loans  

$

55,007

 

$

57,694

 

$

223,787

 

$

225,084

Investment securities  

 

5,369

 

 

2,980

 

 

19,369

 

 

11,469

Interest-bearing deposits  

 

56

 

 

44

 

 

198

 

 

435

FHLB stock dividends  

 

58

 

 

98

 

 

233

 

 

958

Total interest income  

 

60,490

 

 

60,816

 

 

243,587

 

 

237,946

Interest Expense:  
Deposits  

 

2,615

 

 

5,158

 

 

13,482

 

 

26,918

FHLB advances and other  

 

-

 

 

1

 

 

23

 

 

1,691

Subordinated debentures  

 

673

 

 

690

 

 

2,713

 

 

1,300

Notes Payable  

 

-

 

 

-

 

 

-

 

 

32

Total interest expense  

 

3,288

 

 

5,849

 

 

16,218

 

 

29,941

Net interest income  

 

57,202

 

 

54,967

 

 

227,369

 

 

208,005

Provision (benefit) for credit losses - loans  

 

2,816

 

 

(6,158

)

 

(6,733

)

 

43,154

Provision (benefit) for credit losses - unfunded commitments  

 

(807

)

 

(606

)

 

(319

)

 

1,096

Total provision (benefit) for credit losses  

 

2,009

 

 

(6,764

)

 

(7,052

)

 

44,250

Net interest income after provision  

 

55,193

 

 

61,731

 

 

234,421

 

 

163,755

Non-interest Income:  
Service fees and other charges  

 

6,351

 

 

5,767

 

 

24,168

 

 

21,369

Mortgage banking income  

 

3,060

 

 

5,436

 

 

21,925

 

 

28,199

Gain on sale of non-mortgage loans  

 

-

 

 

90

 

 

-

 

 

324

Gain (loss) on sale of available for sale securities  

 

-

 

 

-

 

 

2,218

 

 

1,464

Gain (loss) on trading securities  

 

1,132

 

 

76

 

 

1,954

 

 

90

Insurance commissions  

 

3,379

 

 

3,913

 

 

15,780

 

 

16,788

Wealth management income  

 

1,383

 

 

1,808

 

 

6,027

 

 

6,159

Income from Bank Owned Life Insurance  

 

2,145

 

 

845

 

 

5,121

 

 

3,306

Other non-interest income  

 

374

 

 

734

 

 

2,764

 

 

2,985

Total Non-interest Income  

 

17,824

 

 

18,669

 

 

79,957

 

 

80,684

Non-interest Expense:  
Compensation and benefits  

 

24,247

 

 

19,882

 

 

90,646

 

 

77,213

Occupancy  

 

3,859

 

 

4,471

 

 

15,501

 

 

16,320

FDIC insurance premium  

 

781

 

 

983

 

 

2,896

 

 

3,355

Financial institutions tax  

 

526

 

 

1,106

 

 

4,079

 

 

4,173

Data processing  

 

3,447

 

 

3,752

 

 

13,550

 

 

14,886

Amortization of intangibles  

 

1,483

 

 

1,668

 

 

6,208

 

 

6,449

Acquisition related charges  

 

-

 

 

2,190

 

 

-

 

 

19,485

Other non-interest expense  

 

7,390

 

 

7,261

 

 

25,075

 

 

23,289

Total Non-interest Expense  

 

41,733

 

 

41,313

 

 

157,955

 

 

165,170

Income (loss) before income taxes  

 

31,284

 

 

39,087

 

 

156,423

 

 

79,269

Income tax expense (benefit)  

 

5,974

 

 

8,240

 

 

30,372

 

 

16,192

Net Income (Loss)  

$

25,310

 

$

30,847

 

$

126,051

 

$

63,077

   
   
Earnings (loss) per common share:  
Basic  

$

0.69

 

$

0.83

 

$

3.39

 

$

1.75

Diluted  

$

0.69

 

$

0.82

 

$

3.39

 

$

1.75

   
Average Shares Outstanding:  
Basic  

 

36,740

 

 

37,311

 

 

37,109

 

 

35,902

Diluted  

 

36,848

 

 

37,350

 

 

37,200

 

 

35,949

Premier Financial Corp.
Financial Summary and Comparison (Unaudited)
 

Three Months Ended

 

Twelve Months Ended

 

December 31,

 

December 31,

(dollars in thousands, except per share data)  

2021

 

2020

 

% change

 

2021

 

2020

 

% change

Summary of Operations          
           
Tax-equivalent interest income (2)  

$

60,740

 

 

$

61,067

 

 

(0.5

)

$

244,600

 

 

$

238,965

 

 

2.4

 

Interest expense  

 

3,288

 

 

 

5,849

 

 

(43.8

)

 

16,218

 

 

 

29,942

 

 

(45.8

)

Tax-equivalent net interest income (2)  

 

57,452

 

 

 

55,218

 

 

4.0

 

 

228,382

 

 

 

209,023

 

 

9.3

 

Provision (benefit) for credit losses  

 

2,009

 

 

 

(6,764

)

 

(129.7

)

 

(7,052

)

 

 

44,250

 

 

(115.9

)

Core provision (benefit) for credit losses (4)  

 

2,009

 

 

 

(6,764

)

 

(129.7

)

 

(7,052

)

 

 

18,301

 

 

(138.5

)

Investment securities gains (losses)  

 

1,132

 

 

 

76

 

 

NM

 

 

4,172

 

 

 

1,554

 

 

NM

 

Non-interest income (excluding securities gains/losses)  

 

16,692

 

 

 

18,593

 

 

(10.2

)

 

75,785

 

 

 

79,130

 

 

(4.2

)

Non-interest expense  

 

41,733

 

 

 

41,313

 

 

1.0

 

 

157,955

 

 

 

165,170

 

 

(4.4

)

Core non-interest expense (4)  

 

41,733

 

 

 

39,123

 

 

6.7

 

 

157,955

 

 

 

144,278

 

 

9.5

 

Income tax expense (benefit)  

 

5,974

 

 

 

8,240

 

 

(27.5

)

 

30,372

 

 

 

16,192

 

 

87.6

 

Net income (loss)  

 

25,310

 

 

 

30,847

 

 

(17.9

)

 

126,051

 

 

 

63,077

 

 

99.8

 

Core net income (4)  

 

25,310

 

 

 

32,577

 

 

(22.3

)

 

126,051

 

 

 

99,348

 

 

26.9

 

Tax equivalent adjustment (2)  

 

250

 

 

 

251

 

 

(0.4

)

 

1,013

 

 

 

1,019

 

 

(0.6

)

At Period End          
Assets  

 

7,481,402

 

 

 

7,211,734

 

 

3.7

 

   
Earning assets  

 

6,797,765

 

 

 

6,546,299

 

 

3.8

 

   
Loans  

 

5,296,168

 

 

 

5,491,240

 

 

(3.6

)

   
Allowance for credit losses - loans  

 

66,468

 

 

 

82,079

 

 

(19.0

)

   
Deposits  

 

6,282,051

 

 

 

6,047,841

 

 

3.9

 

   
Stockholders’ equity  

 

1,023,496

 

 

 

982,276

 

 

4.2

 

   
Average Balances          
Assets  

 

7,510,397

 

 

 

7,089,060

 

 

5.9

 

 

7,482,578

 

 

 

6,592,633

 

 

13.5

 

Earning assets  

 

6,736,250

 

 

 

6,363,306

 

 

5.9

 

 

6,732,178

 

 

 

5,931,965

 

 

13.5

 

Loans  

 

5,356,113

 

 

 

5,609,116

 

 

(4.5

)

 

5,473,668

 

 

 

5,224,357

 

 

4.8

 

Deposits and interest-bearing liabilities  

 

6,386,341

 

 

 

6,044,049

 

 

5.7

 

 

6,385,080

 

 

 

5,604,699

 

 

13.9

 

Deposits  

 

6,301,384

 

 

 

5,956,550

 

 

5.8

 

 

6,287,531

 

 

 

5,362,436

 

 

17.3

 

Stockholders’ equity  

 

1,035,717

 

 

 

946,223

 

 

9.5

 

 

1,009,037

 

 

 

898,092

 

 

12.4

 

Stockholders’ equity / assets  

 

13.79

%

 

 

13.35

%

 

3.3

 

 

13.49

%

 

 

13.62

%

 

(1.0

)

Per Common Share Data          
Net Income (Loss)          
Basic  

$

0.69

 

 

$

0.83

 

 

(16.9

)

$

3.39

 

 

$

1.75

 

 

93.7

 

Diluted  

 

0.69

 

 

 

0.82

 

 

(15.9

)

 

3.39

 

 

 

1.75

 

 

93.7

 

Core diluted (4)  

 

0.69

 

 

 

0.87

 

 

(20.7

)

 

3.39

 

 

 

2.76

 

 

22.8

 

Dividends Paid  

 

0.28

 

 

 

0.22

 

 

27.3

 

 

1.05

 

 

 

0.88

 

 

19.3

 

Market Value:          
High  

$

34.00

 

 

$

23.49

 

 

44.7

 

$

35.90

 

 

$

32.05

 

 

12.0

 

Low  

 

28.75

 

 

 

14.90

 

 

93.0

 

 

22.23

 

 

 

10.98

 

 

102.5

 

Close  

 

30.91

 

 

 

23.00

 

 

34.4

 

 

30.91

 

 

 

23.00

 

 

34.4

 

Common Book Value  

 

28.13

 

 

 

26.34

 

 

6.8

 

 

28.13

 

 

 

26.34

 

 

6.8

 

Tangible Common Book Value (1)  

 

18.73

 

 

 

17.00

 

 

10.2

 

 

18.73

 

 

 

17.00

 

 

10.2

 

Shares outstanding, end of period (000s)  

 

36,384

 

 

 

37,291

 

 

(2.4

)

 

36,384

 

 

 

37,291

 

 

(2.4

)

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

 

3.41

%

 

 

3.47

%

 

(1.7

)

 

3.39

%

 

 

3.52

%

 

(3.7

)

Return on average assets  

 

1.34

%

 

 

1.73

%

 

(22.7

)

 

1.68

%

 

 

0.96

%

 

75.5

 

Core return on average assets (4)  

 

1.34

%

 

 

1.83

%

 

(26.9

)

 

1.68

%

 

 

1.51

%

 

11.8

 

Return on average equity  

 

9.70

%

 

 

12.97

%

 

(25.2

)

 

12.49

%

 

 

7.02

%

 

78.0

 

Core return on average equity (4)  

 

9.70

%

 

 

13.70

%

 

(29.2

)

 

12.49

%

 

 

11.06

%

 

12.9

 

Return on average tangible equity  

 

14.49

%

 

 

20.37

%

 

(28.8

)

 

18.99

%

 

 

7.00

%

 

171.1

 

Core return on average tangible equity (4)  

 

14.49

%

 

 

21.51

%

 

(32.6

)

 

18.99

%

 

 

11.06

%

 

71.6

 

Efficiency ratio (3)  

 

56.29

%

 

 

55.97

%

 

0.6

 

 

51.93

%

 

 

57.32

%

 

(9.4

)

Core efficiency ratio (4)  

 

56.29

%

 

 

53.00

%

 

6.2

 

 

51.93

%

 

 

50.07

%

 

3.7

 

Effective tax rate  

 

19.10

%

 

 

21.08

%

 

(9.4

)

 

19.42

%

 

 

20.43

%

 

(5.0

)

Dividend payout ratio (core)  

 

40.58

%

 

 

25.29

%

 

60.5

 

 

30.97

%

 

 

31.88

%

 

(2.9

)

           
Note: Year-to-date 2020 results include eleven months of operations from UCFC compared to twelve for comparable period in 2021.
(1) Tangible common book value = total stockholders' equity less the sum of goodwill, core deposit and other intangibles, and preferred stock divided by shares outstanding at the end of the period.
(2) Interest income on tax-exempt securities and loans has been adjusted to a tax-equivalent basis using the statutory federal income tax rate of 21%.
(3) Efficiency ratio = Non-interest expense divided by sum of tax-equivalent net interest income plus non-interest income, excluding securities gains or losses, net.
(4) Core items exclude the impact of acquisition related provision ("CECL double-dip") and other charges. See non-GAAP reconciliations.
NM Percentage change not meaningful
Premier Financial Corp.
(dollars in thousands)
 

Three Months Ended

 

 

 

Twelve Months Ended

 
 

December 31,

 

 

 

December 31,

 
Mortgage Banking Summary  

2021

 

2020

 

 

 

2021

 

2020

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

$

2,774

 

 

$

6,146

 

   

$

16,437

 

 

$

36,359

 

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

 

1,909

 

 

 

1,916

 

   

 

7,574

 

 

 

7,296

 

 
Amortization of mortgage servicing rights  

 

(1,774

)

 

 

(2,174

)

   

 

(7,892

)

 

 

(7,477

)

 
Mortgage servicing rights valuation adjustments  

 

151

 

 

 

(452

)

   

 

5,806

 

 

 

(7,979

)

 
 

 

286

 

 

 

(710

)

   

 

5,488

 

 

 

(8,160

)

 
Total revenue from sale and servicing of mortgage loans  

$

3,060

 

 

$

5,436

 

   

$

21,925

 

 

$

28,199

 

 
             
Mortgage servicing rights:            
Balance at beginning of period  

$

21,963

 

 

$

21,538

 

   

$

21,666

 

 

$

10,801

 

 
Loans sold, servicing retained  

 

2,056

 

 

 

2,302

 

   

 

8,471

 

 

 

8,595

 

 
Mortgage servicing rights acquired  

 

-

 

 

 

-

 

   

 

-

 

 

 

9,747

 

 
Amortization  

 

(1,774

)

 

 

(2,174

)

   

 

(7,892

)

 

 

(7,477

)

 
Carrying value before valuation allowance at end of period  

 

22,245

 

 

 

21,666

 

   

 

22,245

 

 

 

21,666

 

 
Valuation allowance:            
Balance at beginning of period  

 

(2,858

)

 

 

(8,061

)

   

 

(8,513

)

 

 

(534

)

 
Impairment recovery (charges)  

 

151

 

 

 

(452

)

   

 

5,806

 

 

 

(7,979

)

 
Balance at end of period  

 

(2,707

)

 

 

(8,513

)

   

 

(2,707

)

 

 

(8,513

)

 
Net carrying value at end of period  

$

19,538

 

 

$

13,153

 

   

$

19,538

 

 

$

13,153

 

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

$

-

 

 

$

-

 

 

$

-

 

 

$

32,370

 

 

$

46,038

 

 

$

434,554

 

% of commercial loans  

 

0.0

%

 

 

0.0

%

 

 

0.0

%

 

 

0.8

%

 

 

1.2

%

 

 

11.4

%

% of total loans  

 

0.0

%

 

 

0.0

%

 

 

0.0

%

 

 

0.6

%

 

 

0.8

%

 

 

7.9

%

Retail loan deferrals  

$

-

 

 

$

-

 

 

$

13

 

 

$

3,414

 

 

$

7,412

 

 

$

48,187

 

% of retail loans  

 

0.0

%

 

 

0.0

%

 

 

0.0

%

 

 

0.2

%

 

 

0.4

%

 

 

2.9

%

% of total loans  

 

0.0

%

 

 

0.0

%

 

 

0.0

%

 

 

0.1

%

 

 

0.1

%

 

 

0.9

%

Total loan deferrals  

$

-

 

 

$

-

 

 

$

13

 

 

$

35,784

 

 

$

53,450

 

 

$

482,741

 

% of total loans  

 

0.0

%

 

 

0.0

%

 

 

0.0

%

 

 

0.7

%

 

 

1.0

%

 

 

8.8

%

 
Note: Year-to-date 2020 results include eleven months of operations from UCFC compared to twelve for comparable period in 2021.
Premier Financial Corp.
Yield Analysis
  Three Months Ended December 31,
  (dollars in thousands)
 

2021

2020

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

$

5,356,113

$

55,013

4.11

%

$

5,609,116

$

57,715

4.12

%

Securities  

 

1,245,096

 

5,612

1.80

%

 

632,989

 

3,210

2.03

%

(3)

Interest Bearing Deposits  

 

123,456

 

56

0.18

%

 

102,053

 

44

0.17

%

FHLB stock  

 

11,585

 

59

2.04

%

 

19,148

 

98

2.05

%

Total interest-earning assets  

 

6,736,250

 

60,740

3.61

%

 

6,363,306

 

61,067

3.84

%

Non-interest-earning assets  

 

774,147

 

725,754

Total assets  

$

7,510,397

$

7,089,060

Deposits and Interest-bearing liabilities:  
Interest bearing deposits  

$

4,609,064

$

2,615

0.23

%

$

4,411,557

$

5,158

0.47

%

FHLB advances and other  

 

-

 

-

0.00

%

 

2,663

 

1

0.15

%

Subordinated debentures  

 

84,957

 

673

3.17

%

 

84,836

 

690

3.25

%

Notes payable  

 

-

 

-

-

 

 

-

 

-

-

 

Total interest-bearing liabilities  

 

4,694,021

 

3,288

0.28

%

 

4,499,056

 

5,849

0.52

%

Non-interest bearing deposits  

 

1,692,320

 

-

-

 

 

1,544,993

 

-

-

 

Total including non-interest-bearing deposits  

 

6,386,341

 

3,288

0.21

%

 

6,044,049

 

5,849

0.39

%

Other non-interest-bearing liabilities  

 

88,339

 

98,788

Total liabilities  

 

6,474,680

 

6,142,837

Stockholders' equity  

 

1,035,717

 

946,223

Total liabilities and stockholders' equity  

$

7,510,397

$

7,089,060

Net interest income; interest rate spread  

$

57,452

3.33

%

$

55,218

3.32

%

Net interest margin (4)  

3.41

%

3.47

%

Average interest-earning assets to average interest bearing liabilities  

144

%

141

%

   
  Twelve Months Ended December 31,
 

2021

2020

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

$

5,473,668

$

223,823

4.09

%

$

5,224,357

$

225,179

4.31

%

Securities  

 

1,135,434

 

20,346

1.79

%

 

544,643

 

12,393

2.28

%

(3)

Interest Bearing Deposits  

 

111,433

 

198

0.18

%

 

124,011

 

435

0.35

%

FHLB stock  

 

11,643

 

233

2.00

%

 

38,954

 

958

2.46

%

Total interest-earning assets  

 

6,732,178

 

244,600

3.63

%

 

5,931,965

 

238,965

4.03

%

Non-interest-earning assets  

 

750,400

 

660,668

Total assets  

$

7,482,578

$

6,592,633

Deposits and Interest-bearing liabilities:  
Interest bearing deposits  

$

4,611,525

$

13,482

0.29

%

$

4,050,958

$

26,918

0.66

%

FHLB advances and other  

 

12,586

 

23

0.18

%

 

187,745

 

1,692

0.90

%

Subordinated debentures  

 

84,911

 

2,713

3.20

%

 

48,471

 

1,300

2.68

%

Notes payable  

 

52

 

-

0.75

%

 

6,047

 

32

0.53

%

Total interest-bearing liabilities  

 

4,709,074

 

16,218

0.34

%

 

4,293,221

 

29,942

0.70

%

Non-interest bearing deposits  

 

1,676,006

 

-

-

 

 

1,311,478

 

-

-

 

Total including non-interest-bearing deposits  

 

6,385,080

 

16,218

0.25

%

 

5,604,699

 

29,942

0.53

%

Other non-interest-bearing liabilities  

 

88,461

 

89,842

Total liabilities  

 

6,473,541

 

5,694,541

Stockholders' equity  

 

1,009,037

 

898,092

Total liabilities and stockholders' equity  

$

7,482,578

$

6,592,633

Net interest income; interest rate spread  

$

228,382

3.29

%

$

209,023

3.33

%

Net interest margin (4)  

3.39

%

3.52

%

Average interest-earning assets to average interest bearing liabilities  

143

%

138

%

   
Note: Year-to-date 2020 results include eleven months of operations from UCFC compared to twelve for comparable period in 2021.
(1) Interest on certain tax exempt loans and securities is not taxable for Federal income tax purposes. In order to compare the tax-exempt yields on these assets to taxable yields, the interest earned on these assets is adjusted to a pre-tax equivalent amount based on the marginal corporate federal income tax rate of 21%.
(2) Annualized.
(3) Securities yield = annualized interest income divided by the average balance of securities, excluding average unrealized gains/losses.
(4) Net interest margin is tax equivalent net interest income divided by average interest-earning assets.
Premier Financial Corp.
Selected Quarterly Information
           
(dollars in thousands, except per share data)  

4th Qtr 2021

 

3rd Qtr 2021

 

2nd Qtr 2021

 

1st Qtr 2021

 

4th Qtr 2020

Summary of Operations          
Tax-equivalent interest income (1)  

$

60,740

 

 

$

61,117

 

 

$

61,134

 

 

$

61,609

 

 

$

61,067

 

Interest expense  

 

3,288

 

 

 

3,826

 

 

 

4,245

 

 

 

4,859

 

 

 

5,849

 

Tax-equivalent net interest income (1)  

 

57,452

 

 

 

57,291

 

 

 

56,889

 

 

 

56,750

 

 

 

55,218

 

Provision (benefit) for credit losses  

 

2,009

 

 

 

1,820

 

 

 

(3,919

)

 

 

(6,963

)

 

 

(6,764

)

Core provision (benefit) for credit losses (3)  

 

2,009

 

 

 

1,820

 

 

 

(3,919

)

 

 

(6,963

)

 

 

(6,764

)

Investment securities gains (losses)  

 

1,132

 

 

 

253

 

 

 

661

 

 

 

2,126

 

 

 

76

 

Non-interest income (excluding securities gains/losses)  

 

16,692

 

 

 

18,061

 

 

 

16,884

 

 

 

24,149

 

 

 

18,594

 

Non-interest expense  

 

41,733

 

 

 

39,045

 

 

 

38,375

 

 

 

38,803

 

 

 

41,313

 

Core non-interest expense (3)  

 

41,733

 

 

 

39,045

 

 

 

38,375

 

 

 

38,803

 

 

 

39,123

 

Income tax expense (benefit)  

 

5,974

 

 

 

6,124

 

 

 

8,323

 

 

 

9,952

 

 

 

8,240

 

Net income (loss)  

 

25,310

 

 

 

28,360

 

 

 

31,385

 

 

 

40,996

 

 

 

30,848

 

Core net income (3)  

 

25,310

 

 

 

28,360

 

 

 

31,385

 

 

 

40,996

 

 

 

32,577

 

Tax equivalent adjustment (1)  

 

250

 

 

 

256

 

 

 

270

 

 

 

237

 

 

 

251

 

At Period End          
Total assets  

$

7,481,402

 

 

$

7,468,318

 

 

$

7,593,720

 

 

$

7,530,462

 

 

$

7,211,734

 

Earning assets  

 

6,797,765

 

 

 

6,774,307

 

 

 

6,920,008

 

 

 

6,852,357

 

 

 

6,546,299

 

Loans  

 

5,296,168

 

 

 

5,269,566

 

 

 

5,348,400

 

 

 

5,459,683

 

 

 

5,491,240

 

Allowance for loan losses  

 

66,468

 

 

 

73,217

 

 

 

71,367

 

 

 

74,754

 

 

 

82,079

 

Deposits  

 

6,282,051

 

 

 

6,248,658

 

 

 

6,291,459

 

 

 

6,351,919

 

 

 

6,047,841

 

Stockholders’ equity  

 

1,023,496

 

 

 

1,031,869

 

 

 

1,027,703

 

 

 

998,186

 

 

 

982,276

 

Stockholders’ equity / assets  

 

13.68

%

 

 

13.82

%

 

 

13.53

%

 

 

13.26

%

 

 

13.62

%

Goodwill  

 

317,948

 

 

 

317,948

 

 

 

317,948

 

 

 

317,948

 

 

 

317,948

 

Average Balances          
Total assets  

$

7,510,397

 

 

$

7,529,100

 

 

$

7,549,531

 

 

$

7,338,886

 

 

$

7,089,060

 

Earning assets  

 

6,736,250

 

 

 

6,773,021

 

 

 

6,806,275

 

 

 

6,611,343

 

 

 

6,363,306

 

Loans  

 

5,356,113

 

 

 

5,416,696

 

 

 

5,495,782

 

 

 

5,629,715

 

 

 

5,609,116

 

Deposits and interest-bearing liabilities  

 

6,386,341

 

 

 

6,422,455

 

 

 

6,454,731

 

 

 

6,275,160

 

 

 

6,044,049

 

Deposits  

 

6,301,384

 

 

 

6,317,229

 

 

 

6,339,673

 

 

 

6,190,292

 

 

 

5,956,550

 

Stockholders’ equity  

 

1,035,717

 

 

 

1,020,206

 

 

 

1,006,757

 

 

 

972,653

 

 

 

946,223

 

Stockholders’ equity / assets  

 

13.79

%

 

 

13.55

%

 

 

13.34

%

 

 

13.25

%

 

 

13.35

%

Per Common Share Data          
Net Income (Loss):          
Basic  

$

0.69

 

 

$

0.76

 

 

$

0.84

 

 

$

1.10

 

 

$

0.83

 

Diluted  

 

0.69

 

 

 

0.76

 

 

 

0.84

 

 

 

1.10

 

 

 

0.82

 

Core diluted (3)  

 

0.69

 

 

 

0.76

 

 

 

0.84

 

 

 

1.10

 

 

 

0.87

 

Dividends Paid  

 

0.28

 

 

 

0.27

 

 

 

0.26

 

 

 

0.24

 

 

 

0.22

 

Market Value:          
High  

$

34.00

 

 

$

32.72

 

 

$

33.97

 

 

$

35.90

 

 

$

23.49

 

Low  

 

28.75

 

 

 

25.80

 

 

 

27.76

 

 

 

22.23

 

 

 

14.90

 

Close  

 

30.91

 

 

 

31.84

 

 

 

28.41

 

 

 

33.26

 

 

 

23.00

 

Common Book Value  

 

28.13

 

 

 

27.90

 

 

 

27.64

 

 

 

26.78

 

 

 

26.34

 

Shares outstanding, end of period (000s)  

 

36,384

 

 

 

36,978

 

 

 

37,178

 

 

 

37,275

 

 

 

37,291

 

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

 

3.41

%

 

 

3.38

%

 

 

3.34

%

 

 

3.43

%

 

 

3.47

%

Return on average assets  

 

1.34

%

 

 

1.49

%

 

 

1.67

%

 

 

2.27

%

 

 

1.73

%

Core return on average assets (3)  

 

1.34

%

 

 

1.49

%

 

 

1.67

%

 

 

2.27

%

 

 

1.83

%

Return on average equity  

 

9.70

%

 

 

11.03

%

 

 

12.50

%

 

 

17.09

%

 

 

12.97

%

Core return on average equity (3)  

 

9.70

%

 

 

11.03

%

 

 

12.50

%

 

 

17.09

%

 

 

13.70

%

Return on average tangible equity  

 

14.49

%

 

 

16.65

%

 

 

19.05

%

 

 

26.60

%

 

 

20.37

%

Core return on average tangible equity (3)  

 

14.49

%

 

 

16.65

%

 

 

19.05

%

 

 

26.60

%

 

 

21.51

%

Efficiency ratio (2)  

 

56.29

%

 

 

51.82

%

 

 

52.02

%

 

 

47.96

%

 

 

55.97

%

Core efficiency ratio (3)  

 

56.29

%

 

 

51.82

%

 

 

52.02

%

 

 

47.96

%

 

 

53.00

%

Effective tax rate  

 

19.10

%

 

 

17.76

%

 

 

20.96

%

 

 

19.53

%

 

 

21.08

%

Common dividend payout ratio (core)  

 

40.58

%

 

 

35.53

%

 

 

30.95

%

 

 

21.82

%

 

 

25.29

%

           
(1) Interest income on tax-exempt securities and loans has been adjusted to a tax-equivalent basis using the statutory federal income tax rate of 21%.
(2) Efficiency ratio = Non-interest expense divided by sum of tax-equivalent net interest income plus non-interest income, excluding securities gains or losses, net.
(3) Core items exclude the impact of acquisition related provision ("CECL double-dip") and other charges. See non-GAAP reconciliations.
Premier Financial Corp.
Selected Quarterly Information
   
(dollars in thousands, except per share data)  

4th Qtr 2021

3rd Qtr 2021

2nd Qtr 2021

1st Qtr 2021

4th Qtr 2020

Loan Portfolio Composition  
One to four family residential real estate  

$

1,167,466

 

$

1,129,877

 

$

1,138,433

 

$

1,168,559

 

$

1,201,051

 

Construction  

 

862,815

 

 

885,586

 

 

830,822

 

 

749,190

 

 

667,649

 

Commercial real estate  

 

2,450,349

 

 

2,389,759

 

 

2,405,653

 

 

2,402,067

 

 

2,383,001

 

Commercial  

 

895,638

 

 

952,729

 

 

1,051,972

 

 

1,172,910

 

 

1,202,353

 

Consumer finance  

 

126,417

 

 

125,163

 

 

118,526

 

 

117,539

 

 

120,729

 

Home equity and improvement  

 

264,354

 

 

264,140

 

 

261,842

 

 

257,764

 

 

272,701

 

Total loans  

 

5,767,039

 

 

5,747,254

 

 

5,807,248

 

 

5,868,029

 

 

5,847,484

 

Less:  
Undisbursed loan funds  

 

477,890

 

 

481,434

 

 

458,156

 

 

405,983

 

 

355,065

 

Deferred loan origination fees  

 

(7,019

)

 

(3,746

)

 

692

 

 

2,363

 

 

1,179

 

Allowance for credit losses - loans  

 

66,468

 

 

73,217

 

 

71,367

 

 

74,754

 

 

82,079

 

Net Loans  

$

5,229,700

 

$

5,196,349

 

$

5,277,033

 

$

5,384,929

 

$

5,409,161

 

   
Allowance for credit losses - loans  
Beginning allowance  

$

73,217

 

$

71,367

 

$

74,754

 

$

82,079

 

$

88,917

 

Provision (benefit) for credit losses - loans  

 

2,816

 

 

1,594

 

 

(3,631

)

 

(7,514

)

 

(6,158

)

Net recoveries (charge-offs)  

 

(9,565

)

 

256

 

 

244

 

 

189

 

 

(680

)

Ending allowance  

$

66,468

 

$

73,217

 

$

71,367

 

$

74,754

 

$

82,079

 

   
Credit Quality  
Total non-performing loans (1)  

$

48,014

 

$

59,865

 

$

41,296

 

$

49,298

 

$

51,682

 

Real estate owned (REO)  

 

171

 

 

261

 

 

45

 

 

53

 

 

343

 

Total non-performing assets (2)  

$

48,185

 

$

60,126

 

$

41,341

 

$

49,351

 

$

52,025

 

Net charge-offs (recoveries)  

 

9,565

 

 

(256

)

 

(244

)

 

(189

)

 

680

 

   
Restructured loans, accruing (3)  

 

7,768

 

 

6,503

 

 

5,939

 

 

6,068

 

 

7,173

 

   
Allowance for credit losses - loans / loans  

 

1.26

%

 

1.39

%

 

1.33

%

 

1.37

%

 

1.49

%

Allowance for credit losses - loans / non-performing assets  

 

137.94

%

 

121.77

%

 

172.63

%

 

151.47

%

 

157.77

%

Allowance for credit losses - loans / non-performing loans  

 

138.43

%

 

122.30

%

 

172.82

%

 

151.64

%

 

158.82

%

Non-performing assets / loans plus REO  

 

0.91

%

 

1.14

%

 

0.77

%

 

0.90

%

 

0.95

%

Non-performing assets / total assets  

 

0.64

%

 

0.81

%

 

0.54

%

 

0.66

%

 

0.73

%

Net charge-offs / average loans (annualized)  

 

0.71

%

 

-0.02

%

 

-0.02

%

 

-0.01

%

 

0.05

%

Net charge-offs / average loans LTM  

 

0.16

%

 

0.00

%

 

0.06

%

 

0.05

%

 

0.05

%

   
Deposit Balances  
Non-interest-bearing demand deposits  

$

1,724,772

 

$

1,618,769

 

$

1,649,664

 

$

1,728,895

 

$

1,597,262

 

Interest-bearing demand deposits and money market  

 

2,952,705

 

 

2,962,032

 

 

2,890,769

 

 

2,806,271

 

 

2,627,669

 

Savings deposits  

 

804,451

 

 

786,929

 

 

777,862

 

 

761,899

 

 

700,480

 

Retail time deposits less than $250  

 

636,477

 

 

692,224

 

 

720,317

 

 

842,624

 

 

912,006

 

Retail time deposits greater than $250  

 

163,646

 

 

188,704

 

 

252,847

 

 

212,230

 

 

210,424

 

Total deposits  

$

6,282,051

 

$

6,248,658

 

$

6,291,459

 

$

6,351,919

 

$

6,047,841

 

   
(1) Non-performing loans consist of non-accrual loans.
(2) Non-performing assets are non-performing loans plus real estate and other assets acquired by foreclosure or deed-in-lieu thereof.
(3) Accruing restructured loans are loans with known credit problems that are not contractually past due and therefore are not included in non-performing loans.
Premier Financial Corp.
             
Loan Delinquency Information
(dollars in thousands)   Total Balance   Current   30 to 89 days
past due
  % of
Total
  Non Accrual
Loans
  % of
Total
             
December 31, 2021            
One to four family residential real estate  

$

1,167,466

 

$

1,149,333

 

$

6,212

 

0.5

%

 

$

11,921

 

1.0

%

Construction  

 

862,815

 

 

861,326

 

 

1,489

 

0.2

%

 

 

-

 

0.0

%

Commercial real estate  

 

2,450,349

 

 

2,435,491

 

 

15

 

0.0

%

 

 

14,843

 

0.6

%

Commercial  

 

895,638

 

 

879,521

 

 

76

 

0.0

%

 

 

16,041

 

1.8

%

Consumer finance  

 

126,417

 

 

122,361

 

 

2,023

 

1.6

%

 

 

2,033

 

1.6

%

Home equity and improvement  

 

264,354

 

 

258,661

 

 

2,517

 

1.0

%

 

 

3,176

 

1.2

%

Total loans  

$

5,767,039

 

$

5,706,693

 

$

12,332

 

0.2

%

 

$

48,014

 

0.8

%

             
September 30, 2021            
One to four family residential real estate  

$

1,129,877

 

$

1,115,076

 

$

5,663

 

0.5

%

 

$

9,138

 

0.8

%

Construction  

 

885,586

 

 

884,265

 

 

1,321

 

0.1

%

 

 

-

 

0.0

%

Commercial real estate  

 

2,389,759

 

 

2,367,760

 

 

146

 

0.0

%

 

 

21,853

 

0.9

%

Commercial  

 

952,729

 

 

928,321

 

 

442

 

0.0

%

 

 

23,966

 

2.5

%

Consumer finance  

 

125,163

 

 

121,580

 

 

1,792

 

1.4

%

 

 

1,791

 

1.4

%

Home equity and improvement  

 

264,140

 

 

259,175

 

 

1,848

 

0.7

%

 

 

3,117

 

1.2

%

Total loans  

$

5,747,254

 

$

5,676,177

 

$

11,212

 

0.2

%

 

$

59,865

 

1.0

%

             
December 31, 2020            
One to four family residential real estate  

$

1,201,051

 

$

1,178,876

 

$

8,318

 

0.7

%

 

$

13,857

 

1.2

%

Construction  

 

667,649

 

 

664,248

 

 

2,294

 

0.3

%

 

 

1,107

 

0.2

%

Commercial real estate  

 

2,383,001

 

 

2,359,299

 

 

993

 

0.0

%

 

 

22,709

 

1.0

%

Commercial  

 

1,202,353

 

 

1,192,949

 

 

9

 

0.0

%

 

 

9,395

 

0.8

%

Consumer finance  

 

120,729

 

 

116,632

 

 

2,248

 

1.9

%

 

 

1,849

 

1.5

%

Home equity and improvement  

 

272,701

 

 

265,023

 

 

4,612

 

1.7

%

 

 

3,066

 

1.1

%

Total loans  

$

5,847,484

 

$

5,777,027

 

$

18,474

 

0.3

%

 

$

51,983

 

0.9

%

             
Loan Risk Ratings Information
(dollars in thousands)   Total Balance   Pass Rated   Special Mention   % of
Total
  Classified   % of
Total
             
December 31, 2021            
One to four family residential real estate  

$

1,154,070

 

$

1,142,688

 

$

1,316

 

0.1

%

 

$

10,066

 

0.9

%

Construction  

 

862,815

 

 

843,293

 

 

19,522

 

2.3

%

 

 

-

 

0.0

%

Commercial real estate  

 

2,444,471

 

 

2,321,654

 

 

93,676

 

3.8

%

 

 

29,141

 

1.2

%

Commercial  

 

886,472

 

 

857,905

 

 

14,815

 

1.7

%

 

 

13,752

 

1.6

%

Consumer finance  

 

125,926

 

 

124,073

 

 

-

 

0.0

%

 

 

1,853

 

1.5

%

Home equity and improvement  

 

260,948

 

 

258,914

 

 

-

 

0.0

%

 

 

2,034

 

0.8

%

PCD loans  

 

32,337

 

 

19,547

 

 

101

 

0.3

%

 

 

12,689

 

39.2

%

Total loans  

$

5,767,039

 

$

5,568,074

 

$

129,430

 

2.2

%

 

$

69,535

 

1.2

%

             
September 30, 2021            
One to four family residential real estate  

$

1,117,055

 

$

1,107,787

 

$

1,315

 

0.1

%

 

$

7,953

 

0.7

%

Construction  

 

885,586

 

 

866,054

 

 

19,532

 

2.2

%

 

 

-

 

0.0

%

Commercial real estate  

 

2,379,734

 

 

2,220,881

 

 

117,068

 

4.9

%

 

 

41,785

 

1.8

%

Commercial  

 

944,202

 

 

903,626

 

 

20,474

 

2.2

%

 

 

20,102

 

2.1

%

Consumer finance  

 

124,525

 

 

122,956

 

 

-

 

0.0

%

 

 

1,569

 

1.3

%

Home equity and improvement  

 

260,408

 

 

258,575

 

 

-

 

0.0

%

 

 

1,833

 

0.7

%

PCD loans  

 

35,744

 

 

18,793

 

 

102

 

0.3

%

 

 

16,849

 

47.1

%

Total loans  

$

5,747,254

 

$

5,498,672

 

$

158,491

 

2.8

%

 

$

90,091

 

1.6

%

             
December 31, 2020            
One to four family residential real estate  

$

1,186,262

 

$

1,183,104

 

$

796

 

0.1

%

 

$

2,362

 

0.2

%

Construction  

 

667,649

 

 

647,906

 

 

19,743

 

3.0

%

 

 

-

 

0.0

%

Commercial real estate  

 

2,359,713

 

 

2,202,167

 

 

111,213

 

4.7

%

 

 

46,333

 

2.0

%

Commercial  

 

1,174,545

 

 

1,143,715

 

 

23,713

 

2.0

%

 

 

7,117

 

0.6

%

Consumer finance  

 

119,841

 

 

119,736

 

 

-

 

0.0

%

 

 

105

 

0.1

%

Home equity and improvement  

 

268,311

 

 

267,872

 

 

-

 

0.0

%

 

 

439

 

0.2

%

PCD loans  

 

71,163

 

 

33,311

 

 

3,832

 

5.4

%

 

 

34,020

 

47.8

%

Total loans  

$

5,847,484

 

$

5,597,811

 

$

159,297

 

2.7

%

 

$

90,376

 

1.5

%

Premier Financial Corp.
Non-GAAP Reconciliations
  Twelve months ended          
(In thousands, except per share and ratio data)   12/31/21   12/31/20   4th Qtr 2021   3rd Qtr 2021   2nd Qtr 2021   1st Qtr 2021   4th Qtr 2020
Acquisition related charges (pre-tax)  

$

-

 

 

$

19,485

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

2,190

 

Less: Tax benefit of acquisition related charges  

 

-

 

 

 

3,714

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

460

 

Acquisition related charges (after-tax)  

$

-

 

 

$

15,771

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

1,730

 

               
Total non-interest expenses  

$

157,955

 

 

$

165,170

 

 

$

41,733

 

 

$

39,045

 

 

$

38,375

 

 

$

38,803

 

 

$

41,313

 

Less: Acquisition related charges (pre-tax)  

 

-

 

 

 

19,485

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2,190

 

Less: FHLB prepayment charges(1)  

 

-

 

 

 

1,407

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Core non-interest expenses  

$

157,955

 

 

$

144,278

 

 

$

41,733

 

 

$

39,045

 

 

$

38,375

 

 

$

38,803

 

 

$

39,123

 

               
Acquisition related provision (pre-tax)  

$

-

 

 

$

25,949

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

Less: Tax benefit of acquisition related provision  

 

-

 

 

 

5,449

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Acquisition related provision (after-tax)  

$

-

 

 

$

20,500

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

               
Provision (benefit) for credit losses  

$

(7,052

)

 

$

44,250

 

 

$

2,009

 

 

$

1,820

 

 

$

(3,919

)

 

$

(6,963

)

 

$

(6,764

)

Less: Acquisition related provision (pre-tax)  

 

-

 

 

 

25,949

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Core provision (benefit) for credit losses  

$

(7,052

)

 

$

18,301

 

 

$

2,009

 

 

$

1,820

 

 

$

(3,919

)

 

$

(6,963

)

 

$

(6,764

)

               
Non-interest income  

$

79,957

 

 

$

80,684

 

 

$

17,824

 

 

$

18,314

 

 

$

17,545

 

 

$

26,275

 

 

$

18,669

 

Less: Securities gains (losses)  

 

4,172

 

 

 

1,554

 

 

 

1,132

 

 

 

253

 

 

 

661

 

 

 

2,126

 

 

 

76

 

Non-interest income (excluding securities gains/losses)  

$

75,785

 

 

$

79,130

 

 

$

16,692

 

 

$

18,061

 

 

$

16,884

 

 

$

24,149

 

 

$

18,593

 

               
Tax-equivalent net interest income  

$

228,382

 

 

$

209,023

 

 

$

57,452

 

 

$

57,291

 

 

$

56,889

 

 

$

56,750

 

 

$

55,218

 

Non-interest income (excluding securities gains/losses)  

 

75,785

 

 

 

79,130

 

 

 

16,692

 

 

 

18,061

 

 

 

16,884

 

 

 

24,149

 

 

 

18,593

 

Total revenues  

 

304,167

 

 

 

288,153

 

 

 

74,144

 

 

 

75,352

 

 

 

73,773

 

 

 

80,899

 

 

 

73,811

 

Core non-interest expenses  

$

157,955

 

 

$

144,278

 

 

$

41,733

 

 

$

39,045

 

 

$

38,375

 

 

$

38,803

 

 

$

39,123

 

Core efficiency ratio  

 

51.93

%

 

 

50.07

%

 

 

56.29

%

 

 

51.82

%

 

 

52.02

%

 

 

47.96

%

 

 

53.00

%

               
Income (loss) before income taxes  

$

156,423

 

 

$

79,269

 

 

$

31,284

 

 

$

34,484

 

 

$

39,708

 

 

$

50,948

 

 

$

39,087

 

Add: Provision (benefit) for credit losses  

 

(7,052

)

 

 

44,250

 

 

 

2,009

 

 

 

1,820

 

 

 

(3,919

)

 

 

(6,963

)

 

 

(6,764

)

Pre-tax pre-provision income  

 

149,371

 

 

 

123,519

 

 

 

33,293

 

 

 

36,304

 

 

 

35,789

 

 

 

43,985

 

 

 

32,323

 

Add: Acquisition related charges (pre-tax)  

 

-

 

 

 

19,485

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2,190

 

Core pre-tax pre-provision income  

$

149,371

 

 

$

143,004

 

 

$

33,293

 

 

$

36,304

 

 

$

35,789

 

 

$

43,985

 

 

$

34,513

 

Average total assets  

$

7,482,578

 

 

$

6,592,633

 

 

$

7,510,397

 

 

$

7,529,100

 

 

$

7,549,531

 

 

$

7,338,886

 

 

$

7,089,060

 

Core pre-tax pre-provision return on average assets  

 

2.00

%

 

 

2.17

%

 

 

1.76

%

 

 

1.91

%

 

 

1.90

%

 

 

2.43

%

 

 

1.94

%

               
Net income (loss)  

$

126,051

 

 

$

63,077

 

 

$

25,310

 

 

$

28,360

 

 

$

31,385

 

 

$

40,996

 

 

$

30,847

 

Add: Acquisition related provision (after-tax)  

 

-

 

 

 

20,500

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Add: Acquisition related charges (after-tax)  

 

-

 

 

 

15,771

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,730

 

Core net income  

$

126,051

 

 

$

99,348

 

 

$

25,310

 

 

$

28,360

 

 

$

31,385

 

 

$

40,996

 

 

$

32,577

 

               
Diluted shares - Reported  

 

37,200

 

 

 

35,949

 

 

 

36,848

 

 

 

37,185

 

 

 

37,358

 

 

 

37,357

 

 

 

37,350

 

Add: Dilutive shares for core net income  

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Diluted shares - Core  

 

37,200

 

 

 

35,949

 

 

 

36,848

 

 

 

37,185

 

 

 

37,358

 

 

 

37,357

 

 

 

37,350

 

Core diluted EPS  

$

3.39

 

 

$

2.76

 

 

$

0.69

 

 

$

0.76

 

 

$

0.84

 

 

$

1.10

 

 

$

0.87

 

               
Average total assets  

$

7,482,578

 

 

$

6,592,633

 

 

$

7,510,397

 

 

$

7,529,100

 

 

$

7,549,531

 

 

$

7,338,886

 

 

$

7,089,060

 

Core return on average assets  

 

1.68

%

 

 

1.51

%

 

 

1.34

%

 

 

1.49

%

 

 

1.67

%

 

 

2.27

%

 

 

1.83

%

               
Average total equity  

$

1,009,037

 

 

$

898,092

 

 

$

1,035,717

 

 

$

1,020,206

 

 

$

1,006,757

 

 

$

972,653

 

 

$

946,223

 

Core return on average equity  

 

12.49

%

 

 

11.06

%

 

 

9.70

%

 

 

11.03

%

 

 

12.50

%

 

 

17.09

%

 

 

13.70

%

               
Average total tangible equity  

$

663,850

 

 

$

898,092

 

 

$

692,864

 

 

$

675,875

 

 

$

660,785

 

 

$

624,996

 

 

$

602,495

 

Core return on average tangible equity  

 

18.99

%

 

 

11.06

%

 

 

14.49

%

 

 

16.65

%

 

 

19.05

%

 

 

26.60

%

 

 

21.51

%

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

 

Contacts

Paul Nungester
EVP and CFO
419.785.8700
PNungester@yourpremierbank.com

Release Summary

Premier Financial Corp. Announces Solid 2021 Results

Contacts

Paul Nungester
EVP and CFO
419.785.8700
PNungester@yourpremierbank.com