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Premier Financial Corp. Announces Third Quarter 2023 Results Including Core Deposit Growth and Increased Net Interest Margin

Third Quarter 2023 Highlights

  • Core net income up from prior quarter
  • Net interest margin increased one basis point to 2.73% from prior quarter
  • Deposit growth of $71 million (up 4.1% annualized), including $92 million for core customer deposits excluding brokered (up 5.6% annualized)
  • Expenses down 14.5%, or 6.8% excluding transaction costs, and core efficiency ratio improved by 96 basis points from prior quarter
  • Loan delinquencies down 9.5% from prior quarter and two consecutive quarters of net recoveries
  • Regulatory capital ratios improve by 23 basis points from prior quarter including common equity tier 1 (“CET1”) ratio up to 11.08%
  • Declared dividend of $0.31 per share, up 3.3% from prior year comparable period
  • Launched new digital banking platform to improve clients’ banking experience in October

Premier Financial Corp. (Nasdaq: PFC) (“Premier” or the “Company”) announced today 2023 third quarter results, including net income of $24.7 million ($0.69 per diluted common share) compared to $48.4 million ($1.35 per diluted common share), or core $24.2 million ($0.68 per diluted common share) excluding the insurance agency sale, for the second quarter of 2023.

“I am pleased to announce Premier’s continued improvement in net income, net interest income, and net interest margin performance for the third quarter,” said Gary Small, President and CEO of Premier. “Average annualized loan growth for the quarter totaled 2.9%, consistent with our focus on serving existing client needs while remaining very selective in the pursuit of new relationships. Continued success in attracting customer deposits (up 5.6% annualized for the quarter) will translate into higher loan growth as we enter 2024.”

“Premier’s credit metrics remain steady with delinquencies down as our consumer and commercial clients continue to manage their resources well. Commercial line usage is drifting lower each month as clients utilize their excess cash to reduce line balances. The business outlook across our markets remains strong, yet conservative. Warehouse vacancy is low and manufacturing order boards remain robust, with labor availability as the major constraint. Many companies are focusing on profit margins versus growth as they work through the uncertain economic environment. The housing market remains very tight in most markets with continuing new job creation, a consistent theme across the network. The Federal Reserve’s more paced approach toward interest rates in recent months has allowed the bank, and our clients, time to address the impacts of the higher rate environment,” added Small.

“We at Premier will continue to build capital and make investments designed to improve our business, our client experience, and benefit the communities we serve,” Small continued. “To that end, all of us at Premier are very excited to have just concluded a major initiative focused on improving our client experience. We’ve recently installed a new state-of-the-art digital banking system designed to improve our clients’ banking experience across all channels of the organization. The new digital banking platform has transformed our mobile and online banking experience, bringing new features and services to our clients. Now that we’ve completed the consumer upgrades, expect to see more regarding business banking improvements in early 2024. Premier remains committed to providing an exceptional customer experience, and are committed to making investments that will best serve our clients today and in the future.”

Quarterly results

Capital, deposits and liquidity

Regulatory ratios all improved during the third quarter of 2023, including CET1 of 11.08%, Tier 1 of 11.55% and Total Capital of 13.33%, each up 23 basis points. All of these ratios also exceed well-capitalized guidelines pro forma for accumulated other comprehensive income (“AOCI”), including CET1 of 8.36%, Tier 1 of 8.84% and Total Capital of 10.61%.

Total deposits increased 4.1% annualized, or $71.2 million, during the third quarter of 2023, due to a $92.3 million increase in customer deposits (up 5.6% annualized), offset partly by a decrease of $21.1 million in brokered deposits. Total average interest-bearing deposit costs increased 47 basis points to 2.54% for the third quarter of 2023. This increase was primarily due to brokered deposits and the migration of customers from non-interest bearing deposits into interest-bearing deposits, including higher cost time deposits, as customers continue to seek better yields. Total average customer deposit costs including non-interest and excluding brokered deposits and acquisition marks were 1.85% during the month of September, representing a cumulative beta of 32% compared to the change in the monthly average effective Federal Funds rate that increased 525 basis points to 5.33% since December 2021, as reported by the Federal Reserve Economic Data.

At September 30, 2023, uninsured deposits were 32.8% of total deposits, or 17.7% adjusting for collateralized deposits, other insured deposits and internal company accounts. Total quantifiable liquidity sources totaled $2.57 billion, or 204.0% of adjusted uninsured deposits, and were comprised of the following at September 30, 2023:

  • $117.5 million of cash and cash equivalents with a 5.40% Federal Reserve rate;
  • $280.9 million of unpledged securities with an average yield of 3.05%;
  • $1.3 billion of Federal Home Loan Bank (“FHLB”) borrowing capacity with an overnight borrowing rate of 5.40%;
  • $316.7 million of brokered deposits based on a Company policy limit of 10% of deposits, with market pricing dependent on brokers and duration;
  • $70.0 million of unused lines of credit with an average borrowing rate of 6.65%; and
  • $471.4 million of borrowing capacity at the Federal Reserve with an average rate of 5.48%.

Additional liquidity sources include deposit growth, cash earnings in excess of dividends, loan repayments/participations/sales, and securities cash flows, which are estimated to be $66.5 million over the next 12 months.

Net interest income and margin

Net interest income of $54.3 million on a tax equivalent (“TE”) basis in the third quarter of 2023 was up 0.5% from $54.1 million in the second quarter of 2023 but down 14.5% from $63.5 million in the third quarter of 2022. The TE net interest margin of 2.73% in the third quarter of 2023 increased one basis point from 2.72% in the second quarter of 2023 but decreased 67 basis points from 3.40% in the third quarter of 2022. Results for all periods include the impact of Paycheck Protection Program (“PPP”) as well as acquisition marks and related accretion. Third quarter 2023 includes $142 thousand of accretion in interest income, $180 thousand of accretion in interest expense, and $4 thousand of interest income on average balances of $553 thousand for PPP.

Excluding the impact of acquisition marks accretion and PPP loans, core net interest income was $54.0 million, up 0.6% from $53.7 million in the second quarter of 2023 but down 14.1% from $62.9 million in the third quarter of 2022. Additionally, the core net interest margin was 2.71% for the third quarter of 2023, up one basis point from 2.70% for the second quarter of 2023 but down 65 basis points from 3.36% for the third quarter of 2022. These results are positively impacted by the combination of loan growth and higher loan yields, which were 5.12% for the third quarter of 2023 compared to 4.86% in the second quarter of 2023 and 4.29% in the third quarter of 2022. Excluding the impact of PPP, balance sheet hedges and acquisition marks accretion, loan yields were 5.16% in September 2023 for an increase of 141 basis points since December 2021, which represents a cumulative beta of 27% compared to the change in the monthly average effective Federal Funds rate for the same period.

The cost of funds in the third quarter of 2023 was 2.17%, up 25 basis points from the second quarter of 2023 and up 162 basis points from the third quarter of 2022. The increases are largely due to the higher average deposit costs discussed above. Excluding the impact of balance sheet hedges and acquisition marks accretion, cost of funds were 2.24% in September 2023 for an increase of 203 basis points since December 2021, which represents a cumulative beta of 39% compared to the change in the monthly average effective Federal Funds rate for the same period.

“Our margin has been very consistent over the past six months as we’ve taken steps to attract new money at the right rate, manage the migration of existing deposits into higher rate offerings, and have appropriately repriced loan renewals to reflect today’s environment,” said Small. “These steps, combined with nimble balance sheet management, will be the key to additional net interest income and margin improvement in the future.”

Non-interest income

Excluding insurance commissions, total non-interest income in the third quarter of 2023 of $13.3 million was up 2.6% from $12.9 million in the second quarter of 2023 excluding the $36.3 million gain on the sale of the insurance agency, and 0.3% from $13.2 million in the third quarter of 2022, primarily due to fluctuations in mortgage banking and gains/losses on securities. Mortgage banking income increased $0.3 million on a linked quarter basis but decreased $0.7 million year-over-year, primarily as a result of fluctuations in gain margins.

Security gains were $256 thousand in the third quarter of 2023, partly due to increased valuations on equity securities. This compares to gains of $64 thousand in the second quarter of 2023 and $43 thousand in the third quarter of 2022, each primarily from increased valuations on equity securities. Service fees in the third quarter of 2023 were $6.9 million, a 3.4% decrease from $7.2 million in the second quarter of 2023 but a 6.1% increase from $6.5 million in the third quarter of 2022. This change was primarily due to fluctuations in loan fees, including commercial customer swap activity. Due to the insurance agency sale in the second quarter of 2023, there were no insurance commissions in the third quarter of 2023, compared to $4.1 million in the second quarter of 2023 and $3.5 million in the third quarter of 2022. Wealth management income of $1.5 million in the third quarter of 2023 was consistent with $1.5 million in the second quarter of 2023 and up from $1.4 million in the third quarter of 2022.

Non-interest expenses

Non-interest expenses in the third quarter of 2023 were $38.1 million, a 6.8% decrease from $40.8 million in the second quarter of 2023, excluding transaction costs for the insurance agency sale, and a 7.4% decrease from $41.1 million in the third quarter of 2022. Compensation and benefits were $21.8 million in the third quarter of 2023, compared to $24.2 million in the second quarter of 2023 and $24.5 million in the third quarter of 2022. The linked quarter decrease was primarily due to the insurance agency sale and cost saving initiatives that began during the second quarter of 2023. The year-over-year decrease was primarily due to the insurance agency sale, partially offset by costs related to higher staffing levels for our 2022 growth initiatives and higher base compensation, including 2022 mid-year adjustments and 2023 annual adjustments. FDIC premiums decreased $0.4 million on a linked quarter basis due to accrual true-up in the prior quarter, but increased $0.4 million from the third quarter of 2022 primarily due to year-over-year growth. All other non-interest expenses increased only a net $11 thousand on a linked quarter basis and decreased a net $0.7 million on a year-over-year basis due to the insurance agency sale and cost saving initiatives. The efficiency ratio for the third quarter of 2023 of 56.5% improved from 57.5% (excluding transaction costs and the insurance agency gain on sale) in the second quarter of 2023 due to cost saving initiatives but worsened from 51.3% in the third quarter of 2022 due to lower revenues.

“We continue to execute on expense reductions and are pleased to have improved our core efficiency ratio almost 100 basis points this quarter,” said Paul Nungester, CFO of Premier. “Through the combination of successful cost save initiatives implemented to-date and the insurance agency sale, we have reduced our expense run-rate 11% to $152 million annualized from our beginning of the year estimate of $170 million.”

Credit quality

Non-performing assets totaled $39.9 million, or 0.47% of assets, at September 30, 2023, an increase from $37.6 million at June 30, 2023, and from $33.6 million at September 30, 2022. Loan delinquencies decreased to $17.2 million, or 0.24% of loans, at September 30, 2023, from $19.0 million at June 30, 2023, but increased from $13.2 million at September 30, 2022. Classified loans totaled $63.5 million, or 0.90% of loans, as of September 30, 2023, an increase from $60.5 million at June 30, 2023, and from $45.0 million at September 30, 2022.

The 2023 third quarter results include net recoveries of $347 thousand and a total provision benefit of $0.8 million, compared with net loan charge-offs of $154 thousand and a total provision expense of $4.0 million for the same period in 2022. The allowance for credit losses as a percentage of total loans was 1.14% at September 30, 2023, compared with 1.13% at June 30, 2023, and 1.14% at September 30, 2022. The allowance for credit losses as a percentage of total loans excluding PPP and including unaccreted acquisition marks was 1.17% at September 30, 2023, compared with 1.16% at June 30, 2023, and 1.19% at September 30, 2022. The continued economic improvement following the 2020 pandemic-related downturn has resulted in a year-over-year decrease in the allowance percentages.

“Our commercial and credit teams have expanded their loan review and analysis routines looking for early warning indicators of potential stress on specific loans and categories (e.g., office), with particular focus on ‘shocking’ the portfolio for the effect of future repricing scenarios,” said Small.

Year to date results

For the nine-month period ended September 30, 2023, net income totaled $91.2 million, or $2.55 per diluted common share, compared to $76.9 million, or $2.15 per diluted common share for the nine months ended September 30, 2022. 2023 results include the impact of the insurance agency sale for a net gain on sale after transaction costs of $32.6 million pre-tax, or $0.67 per diluted share after-tax. Excluding the impact of this item, year-to-date 2023 core net income were $67.1 million, or $1.87 per diluted share.

Net interest income of $164.8 million on a TE basis for the first nine months of 2023 was down 8.9% from $181.0 million for the same period in 2022. The TE net interest margin of 2.78% in the first nine months of 2023 decreased 62 basis points from 3.40% for the same period in 2022. Results for all periods include the impact of PPP as well as acquisition marks and related accretion. 2023 year-to-date includes $475 thousand of accretion in interest income, $613 thousand of accretion in interest expense, and $15 thousand of interest income on average balances of $729 thousand for PPP. Excluding the impact of acquisition marks accretion and PPP loans, core net interest income was $163.7 million, down 6.5% from $175.1 million in the first nine months 2022. Additionally, the core net interest margin was 2.76% for the first nine months of 2023, down 53 basis points from 3.29% for the same period of 2022. These results are positively impacted by the combination of loan growth and higher loan yields, which were 4.88% for the first nine months of 2023 compared to 4.13% for the same period in 2022. The cost of funds in the first nine months of 2023 was 1.87%, up 154 basis points for the same period of 2022. The year-over-year increase is largely due to utilization of higher cost FHLB borrowings in support of loan growth in excess of deposit growth during 2022.

Excluding insurance commissions and the $36.3 million gain on the sale of the insurance agency, total non-interest income in the first nine months of 2023 of $33.9 million was down 5.5% from $35.9 million for the same period of 2022. Insurance commissions were $8.9 million in 2023 down from $12.0 million in the first nine months of 2022 due to the insurance agency sale on June 30, 2023. Mortgage banking income decreased $4.2 million year-over-year as a result of a $3.1 million decrease in gains primarily from lower production and margins, as well as a $155 thousand mortgage servicing rights (“MSR”) valuation gain in the first nine months of 2023 compared to a $1.6 million gain for the same period of 2022.

Security losses were $1.1 million in the nine months of 2023, primarily due to decreased valuations on equity securities. This compares to a loss of $1.8 million from decreased valuations on equity securities in the first nine months 2022. The company also sold $21 million of available-for-sale (“AFS”) securities for a $27 thousand gain with average yields less than FHLB borrowing rates during the first nine months of 2023. Service fees in the first nine months of 2023 were $20.6 million, a 7.0% increase from $19.2 million in the first nine months of 2022, primarily due to fluctuations in loan fees including commercial customer swap activity and consumer activity for interchange and ATM/NSF charges. Wealth management income of $4.5 million in the first nine months of 2023 was up 6.7% from $4.2 million in the first nine months of 2022. Bank owned life insurance income of $3.5 million in the first nine months of 2023 increased from $3.0 million in the first nine months of 2022 with $0.4 million of claim gains in 2023 compared to none in 2022.

Excluding transaction costs for the insurance agency sale, non-interest expenses in the first nine months of 2023 were $121.7 million, essentially flat from $121.5 million in the first nine months of 2022. Compensation and benefits were $71.6 million in the first nine months of 2023, compared to $72.4 million in the first nine months of 2022. The year-over-year decrease was primarily due to the insurance agency sale on June 30, 2023, and cost saving initiatives that began during the second quarter of 2023 partially offset by costs related to higher staffing levels for our 2022 growth initiatives and higher base compensation, including 2022 mid-year adjustments and 2023 annual adjustments. FDIC premiums increased $2.1 million on a year-over-year basis primarily due to higher rates and our 2022 growth initiatives. All other non-interest expenses decreased a net $1.1 million on a year-over-year basis. The efficiency ratio (excluding transaction costs and the insurance agency gain on sale) for the first nine months of 2023 of 58.3% worsened from 52.7% in the first nine months of 2022 due to lower revenues partly offset by cost saving initiatives that began during the second quarter of 2023.

Results for the first nine months of 2023 include net loan charge-offs of $1.9 million and a total provision expense of $3.5 million, compared with net loan charge-offs of $5.3 million and a total provision expense of $11.5 million for the same period in 2022. The provision expense for both years is primarily due to relative loan growth.

Total assets at $8.56 billion

Total assets at September 30, 2023, were $8.56 billion, compared to $8.62 billion at June 30, 2023, and $8.24 billion at September 30, 2022. Loans receivable were $6.70 billion at September 30, 2023, compared to $6.71 billion at June 30, 2023, and $6.21 billion at September 30, 2022. At September 30, 2023, loans receivable increased $489.2 million on a year-over-year basis, or 7.9%. Commercial loans excluding PPP increased by $248.3 million from September 30, 2022, or 6.0%. Securities at September 30, 2023, were $0.92 billion, compared to $0.97 billion at June 30, 2023, and $1.08 billion at September 30, 2022. All securities are either AFS or trading and are reflected at fair value on the balance sheet. Also, at September 30, 2023, goodwill and other intangible assets totaled $308.8 million compared to $309.9 million at June 30, 2023, and $337.9 million at September 30, 2022, with the decreases attributable to intangibles amortization and the insurance agency sale.

Total non-brokered deposits at September 30, 2023, were $6.67 billion, compared with $6.58 billion at June 30, 2023, and $6.67 billion at September 30, 2022. At September 30, 2023, customer deposits increased $92.3 million on a linked quarter basis, or 5.6% annualized. Brokered deposits were $392.2 million at September 30, 2023, compared to $413.2 million at June 30, 2023 and $69.9 million at September 30, 2022.

Total stockholders’ equity was $919.6 million at September 30, 2023, compared to $937.0 million at June 30, 2023, and $865.0 million at September 30, 2022. The quarterly decrease in stockholders’ equity was primarily due to a decrease in AOCI, which was related to $24.9 million for a negative valuation adjustment on the AFS securities portfolio, partly offset by net earnings after dividends. The year-over-year increase was primarily due to net earnings after dividends including the impact the insurance agency sale offset partly by a decrease in AOCI, which was primarily related to $16.3 million of negative valuation adjustments on the AFS securities portfolio. At September 30, 2023, 1,199,634 common shares remained available for repurchase under the Company’s existing repurchase program.

Dividend to be paid November 17

The Board of Directors declared a quarterly cash dividend of $0.31 per common share payable November 17, 2023, to shareholders of record at the close of business on November 10, 2023. The dividend represents an annual dividend of 7.5 percent based on the Premier common stock closing price on October 23, 2023. Premier has approximately 35,731,000 common shares outstanding.

Conference call

Premier will host a conference call at 11:00 a.m. ET on Wednesday, October 25, 2023, to discuss the earnings results and business trends. The conference call may be accessed by calling 1-833-470-1428 and using access code 346494. Internet access to the call is also available (in listen-only mode) at the following URL: https://events.q4inc.com/attendee/320076724. The webcast 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. Premier Bank, headquartered in Youngstown, Ohio, operates 75 branches and 9 loan offices in Ohio, Michigan, Indiana and Pennsylvania and also serves clients through a team of wealth professionals dedicated to each community banking branch. For more information, visit the company’s website at PremierFinCorp.com.

Financial Statements and Highlights Follow-

Safe Harbor Statement

This document may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These statements may include, but are not limited to, statements regarding projections, forecasts, goals and plans of Premier Financial Corp. 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: 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 and its subsidiaries operate; increasing competition for financial products from other financial institutions and nonbank financial technology companies; future interest rate levels; 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, 2022 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, 2023, 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 interest income, core net income and core pre-tax pre-provision income to be a useful supplemental measure of our operating performance. We define core net interest income as net interest income on a tax-equivalent basis excluding income from PPP loans and purchase accounting marks accretion. We define core net income as net income excluding the after-tax impact of the insurance agency gain on sale and related transaction costs. We define core pre-tax pre-provision income as pre-tax pre-provision income excluding the pre-tax impact of the insurance agency gain on sale and related transaction costs. We believe that these metrics are useful supplemental measures of operating performance because investors and equity analysts may use these measures to compare the operating performance of the Company between periods or as compared to other financial institutions or other companies on a consistent basis without having to account for income from PPP loans, purchase accounting marks accretion or the insurance agency sale. Our supplemental reporting measures and similarly entitled financial measures are widely used by investors, equity and debt analysts and ratings agencies in the valuation, comparison, rating and investment recommendations of companies. Our management uses these financial measures to facilitate internal and external comparisons to historical operating results and in making operating decisions. Additionally, they are utilized by the Board of Directors to evaluate management. The supplemental reporting measures do not represent net income or cash flow provided from operating activities as determined in accordance with U.S. GAAP and should not be considered as alternative measures of profitability or liquidity. Finally, the supplemental reporting measures, as defined by us, may not be comparable to similarly entitled items reported by other financial institutions or other companies. Please see the exhibits for reconciliations of our supplemental reporting measures.

Consolidated Balance Sheets (Unaudited)
Premier Financial Corp.
 

September 30,

June 30,

March 31,

December 31,

September 30,

(in thousands)

 

2023

 

 

2023

 

 

2023

 

 

2022

 

 

2022

 

 
Assets
Cash and cash equivalents
Cash and amounts due from depositories

$

70,642

 

$

71,096

 

$

68,628

 

$

88,257

 

$

67,124

 

Interest-bearing deposits

 

46,855

 

 

50,631

 

 

88,399

 

 

39,903

 

 

37,868

 

 

117,497

 

 

121,727

 

 

157,027

 

 

128,160

 

 

104,992

 

 
Available-for-sale, carried at fair value

 

911,184

 

 

961,123

 

 

998,128

 

 

1,040,081

 

 

1,063,713

 

Equity securities, carried at fair value

 

5,860

 

 

6,458

 

 

6,387

 

 

7,832

 

 

15,336

 

Securities investments

 

917,044

 

 

967,581

 

 

1,004,515

 

 

1,047,913

 

 

1,079,049

 

 
Loans (1)

 

6,696,869

 

 

6,708,568

 

 

6,575,829

 

 

6,460,620

 

 

6,207,708

 

Allowance for credit losses - loans

 

(76,513

)

 

(75,921

)

 

(74,273

)

 

(72,816

)

 

(70,626

)

Loans, net

 

6,620,356

 

 

6,632,647

 

 

6,501,556

 

 

6,387,804

 

 

6,137,082

 

Loans held for sale

 

135,218

 

 

128,079

 

 

119,604

 

 

115,251

 

 

129,142

 

Mortgage servicing rights

 

19,642

 

 

20,160

 

 

20,654

 

 

21,171

 

 

20,832

 

Accrued interest receivable

 

34,648

 

 

30,056

 

 

29,388

 

 

28,709

 

 

26,021

 

Federal Home Loan Bank stock

 

25,049

 

 

39,887

 

 

37,056

 

 

29,185

 

 

28,262

 

Bank Owned Life Insurance

 

172,906

 

 

171,856

 

 

170,841

 

 

170,713

 

 

169,728

 

Office properties and equipment

 

55,679

 

 

55,736

 

 

55,982

 

 

55,541

 

 

53,747

 

Real estate and other assets held for sale

 

387

 

 

561

 

 

393

 

 

619

 

 

416

 

Goodwill

 

295,602

 

 

295,602

 

 

317,988

 

 

317,988

 

 

317,948

 

Core deposit and other intangibles

 

13,220

 

 

14,298

 

 

17,804

 

 

19,074

 

 

19,972

 

Other assets

 

155,628

 

 

138,021

 

 

129,508

 

 

133,214

 

 

148,949

 

Total Assets

$

8,562,876

 

$

8,616,211

 

$

8,562,316

 

$

8,455,342

 

$

8,236,140

 

 
Liabilities and Stockholders’ Equity
Non-interest-bearing deposits

$

1,545,595

 

$

1,573,837

 

$

1,649,726

 

$

1,869,509

 

$

1,826,511

 

Interest-bearing deposits

 

5,127,863

 

 

5,007,358

 

 

4,969,436

 

 

4,893,502

 

 

4,836,113

 

Brokered deposits

 

392,181

 

 

413,237

 

 

154,869

 

 

143,708

 

 

69,881

 

Total deposits

 

7,065,639

 

 

6,994,432

 

 

6,774,031

 

 

6,906,719

 

 

6,732,505

 

Advances from FHLB

 

339,000

 

 

455,000

 

 

658,000

 

 

428,000

 

 

411,000

 

Subordinated debentures

 

85,197

 

 

85,166

 

 

85,123

 

 

85,103

 

 

85,071

 

Advance payments by borrowers

 

22,781

 

 

26,045

 

 

26,300

 

 

34,188

 

 

33,511

 

Reserve for credit losses - unfunded commitments

 

4,690

 

 

5,708

 

 

6,577

 

 

6,816

 

 

7,061

 

Other liabilities

 

126,002

 

 

112,889

 

 

97,835

 

 

106,795

 

 

102,032

 

Total Liabilities

 

7,643,309

 

 

7,679,240

 

 

7,647,866

 

 

7,567,621

 

 

7,371,180

 

Stockholders’ Equity
Preferred stock

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Common stock, net

 

306

 

 

306

 

 

306

 

 

306

 

 

306

 

Additional paid-in-capital

 

690,038

 

 

689,579

 

 

689,807

 

 

691,453

 

 

691,578

 

Accumulated other comprehensive income (loss)

 

(200,282

)

 

(168,721

)

 

(153,709

)

 

(173,460

)

 

(181,231

)

Retained earnings

 

560,945

 

 

547,336

 

 

510,021

 

 

502,909

 

 

488,305

 

Treasury stock, at cost

 

(131,440

)

 

(131,529

)

 

(131,975

)

 

(133,487

)

 

(133,998

)

Total Stockholders’ Equity

 

919,567

 

 

936,971

 

 

914,450

 

 

887,721

 

 

864,960

 

Total Liabilities and Stockholders’ Equity

$

8,562,876

 

$

8,616,211

 

$

8,562,316

 

$

8,455,342

 

$

8,236,140

 

 
(1) Includes PPP loans of:

$

526

 

$

577

 

$

791

 

$

1,143

 

$

1,181

 

 
Consolidated Statements of Income (Unaudited)
Premier Financial Corp.
Three Months Ended Nine Months Ended
(in thousands, except per share amounts) 9/30/23 6/30/23 3/31/23 12/31/22 9/30/22 9/30/23 9/30/22
Interest Income:
Loans

$

86,612

 

$

81,616

 

$

76,057

 

$

72,194

 

$

65,559

$

244,285

 

$

177,366

 

Investment securities

 

6,943

 

 

6,997

 

 

7,261

 

 

7,605

 

 

6,814

 

21,201

 

 

18,489

 

Interest-bearing deposits

 

652

 

 

641

 

 

444

 

 

444

 

 

221

 

1,737

 

 

387

 

FHLB stock dividends

 

690

 

 

905

 

 

394

 

 

482

 

 

510

 

1,989

 

 

743

 

Total interest income

 

94,897

 

 

90,159

 

 

84,156

 

 

80,725

 

 

73,104

 

269,212

 

 

196,985

 

Interest Expense:
Deposits

 

34,874

 

 

26,825

 

 

21,458

 

 

13,161

 

 

6,855

 

83,157

 

 

11,749

 

FHLB advances

 

4,597

 

 

8,217

 

 

5,336

 

 

3,941

 

 

2,069

 

18,150

 

 

2,609

 

Subordinated debentures

 

1,162

 

 

1,125

 

 

1,075

 

 

1,000

 

 

868

 

3,362

 

 

2,326

 

Notes Payable

 

-

 

 

-

 

 

-

 

 

4

 

 

-

 

-

 

 

1

 

Total interest expense

 

40,633

 

 

36,167

 

 

27,869

 

 

18,106

 

 

9,792

 

104,669

 

 

16,685

 

Net interest income

 

54,264

 

 

53,992

 

 

56,287

 

 

62,619

 

 

63,312

 

164,543

 

 

180,300

 

Provision (benefit) for credit losses - loans

 

245

 

 

1,410

 

 

3,944

 

 

3,020

 

 

3,706

 

5,599

 

 

9,483

 

Provision (benefit) for credit losses - unfunded commitments

 

(1,018

)

 

(870

)

 

(238

)

 

(246

)

 

306

 

(2,126

)

 

2,030

 

Total provision (benefit) for credit losses

 

(773

)

 

540

 

 

3,706

 

 

2,774

 

 

4,012

 

3,473

 

 

11,513

 

Net interest income after provision

 

55,037

 

 

53,452

 

 

52,581

 

 

59,845

 

 

59,300

 

161,070

 

 

168,787

 

Non-interest Income:
Service fees and other charges

 

6,947

 

 

7,190

 

 

6,428

 

 

6,632

 

 

6,545

 

20,564

 

 

19,221

 

Mortgage banking income

 

3,274

 

 

2,940

 

 

(274

)

 

(299

)

 

3,970

 

5,940

 

 

10,170

 

Gain (loss) on sale of non-mortgage loans

 

-

 

 

71

 

 

-

 

 

-

 

 

-

 

71

 

 

-

 

Gain (loss) on sale of available for sale securities

 

-

 

 

(7

)

 

34

 

 

1

 

 

-

 

27

 

 

-

 

Gain (loss) on equity securities

 

256

 

 

71

 

 

(1,445

)

 

1,209

 

 

43

 

(1,118

)

 

(1,760

)

Gain on sale of insurance agency

 

-

 

 

36,296

 

 

-

 

 

-

 

 

-

 

36,296

 

 

-

 

Insurance commissions

 

-

 

 

4,131

 

 

4,725

 

 

3,576

 

 

3,488

 

8,856

 

 

12,043

 

Wealth management income

 

1,509

 

 

1,537

 

 

1,485

 

 

1,582

 

 

1,355

 

4,531

 

 

4,246

 

Income from Bank Owned Life Insurance

 

1,050

 

 

1,015

 

 

1,417

 

 

984

 

 

983

 

3,482

 

 

2,961

 

Other non-interest income

 

217

 

 

102

 

 

92

 

 

543

 

 

320

 

412

 

 

1,051

 

Total Non-interest Income

 

13,253

 

 

53,346

 

 

12,462

 

 

14,228

 

 

16,704

 

79,061

 

 

47,932

 

Non-interest Expense:
Compensation and benefits

 

21,813

 

 

24,175

 

 

25,658

 

 

24,999

 

 

24,522

 

71,646

 

 

72,397

 

Occupancy

 

3,145

 

 

3,320

 

 

3,574

 

 

3,383

 

 

3,463

 

10,039

 

 

10,657

 

FDIC insurance premium

 

1,346

 

 

1,786

 

 

1,288

 

 

1,276

 

 

976

 

4,420

 

 

2,370

 

Financial institutions tax

 

989

 

 

961

 

 

852

 

 

795

 

 

1,050

 

2,802

 

 

3,315

 

Data processing

 

4,010

 

 

3,640

 

 

3,863

 

 

3,882

 

 

3,121

 

11,513

 

 

9,899

 

Amortization of intangibles

 

1,078

 

 

1,223

 

 

1,270

 

 

1,293

 

 

1,338

 

3,571

 

 

4,156

 

Transaction costs

 

-

 

 

3,652

 

 

-

 

 

-

 

 

-

 

3,652

 

 

-

 

Other non-interest expense

 

5,671

 

 

5,738

 

 

6,286

 

 

7,400

 

 

6,629

 

17,695

 

 

18,689

 

Total Non-interest Expense

 

38,052

 

 

44,495

 

 

42,791

 

 

43,028

 

 

41,099

 

125,338

 

 

121,483

 

Income before income taxes

 

30,238

 

 

62,303

 

 

22,252

 

 

31,045

 

 

34,905

 

114,793

 

 

95,236

 

Income tax expense

 

5,551

 

 

13,912

 

 

4,103

 

 

5,770

 

 

6,710

 

23,566

 

 

18,324

 

Net Income

$

24,687

 

$

48,391

 

$

18,149

 

$

25,275

 

$

28,195

$

91,227

 

$

76,912

 

 
 
Earnings per common share:
Basic

$

0.69

 

$

1.35

 

$

0.51

 

$

0.71

 

$

0.79

$

2.55

 

$

2.15

 

Diluted

$

0.69

 

$

1.35

 

$

0.51

 

$

0.71

 

$

0.79

$

2.55

 

$

2.15

 

 
Average Shares Outstanding:
Basic

 

35,730

 

 

35,722

 

 

35,606

 

 

35,589

 

 

35,582

 

35,701

 

 

35,709

 

Diluted

 

35,794

 

 

35,800

 

 

35,719

 

 

35,790

 

 

35,704

 

35,769

 

 

35,818

 

Premier Financial Corp.
Selected Quarterly Information
Three Months Ended Nine Months Ended
(dollars in thousands, except per share data) 9/30/23 6/30/23 3/31/23 12/31/22 9/30/22 9/30/23 9/30/22
Summary of Operations
Tax-equivalent interest income (1)

$

94,951

 

$

90,226

 

$

84,260

 

$

80,889

 

$

73,301

 

$

269,437

 

$

197,637

 

Interest expense

 

40,633

 

 

36,167

 

 

27,869

 

 

18,106

 

 

9,792

 

 

104,669

 

 

16,685

 

Tax-equivalent net interest income (1)

 

54,318

 

 

54,059

 

 

56,391

 

 

62,783

 

 

63,509

 

 

164,768

 

 

180,952

 

Provision expense for credit losses

 

(773

)

 

540

 

 

3,706

 

 

2,774

 

 

4,012

 

 

3,473

 

 

11,513

 

Non-interest income (ex securities gains/losses)

 

12,997

 

 

53,282

 

 

13,873

 

 

13,018

 

 

16,661

 

 

80,152

 

 

49,692

 

Core non-interest income (ex securities gains/losses) (2)

 

12,997

 

 

16,986

 

 

13,873

 

 

13,018

 

 

16,661

 

 

43,856

 

 

49,692

 

Non-interest expense

 

38,052

 

 

44,495

 

 

42,791

 

 

43,028

 

 

41,099

 

 

125,338

 

 

121,483

 

Core non-interest expense (2)

 

38,052

 

 

40,843

 

 

42,791

 

 

43,028

 

 

41,099

 

 

121,686

 

 

121,483

 

Income tax expense

 

5,551

 

 

13,912

 

 

4,103

 

 

5,770

 

 

6,710

 

 

23,566

 

 

18,324

 

Net income

 

24,687

 

 

48,391

 

 

18,149

 

 

25,275

 

 

28,195

 

 

91,227

 

 

76,912

 

Core net income (2)

 

24,687

 

 

24,230

 

 

18,149

 

 

25,275

 

 

28,195

 

 

67,066

 

 

76,912

 

Tax equivalent adjustment (1)

 

54

 

 

67

 

 

104

 

 

164

 

 

197

 

 

225

 

 

652

 

At Period End
Total assets

$

8,562,876

 

$

8,616,211

 

$

8,562,316

 

$

8,455,342

 

$

8,236,140

 

Goodwill and intangibles

 

308,822

 

 

309,900

 

 

335,792

 

 

337,062

 

 

337,920

 

Tangible assets (3)

 

8,254,054

 

 

8,306,311

 

 

8,226,524

 

 

8,118,280

 

 

7,898,220

 

Earning assets

 

7,744,522

 

 

7,818,825

 

 

7,751,130

 

 

7,620,056

 

 

7,411,403

 

Loans

 

6,696,869

 

 

6,708,568

 

 

6,575,829

 

 

6,460,620

 

 

6,207,708

 

Allowance for loan losses

 

76,513

 

 

75,921

 

 

74,273

 

 

72,816

 

 

70,626

 

Deposits

 

7,065,639

 

 

6,994,432

 

 

6,774,031

 

 

6,906,719

 

 

6,732,505

 

Stockholders’ equity

 

919,567

 

 

936,971

 

 

914,450

 

 

887,721

 

 

864,960

 

Stockholders’ equity / assets

 

10.74

%

 

10.87

%

 

10.68

%

 

10.50

%

 

10.50

%

Tangible equity (3)

 

610,745

 

 

627,071

 

 

578,658

 

 

550,659

 

 

527,040

 

Tangible equity / tangible assets

 

7.40

%

 

7.55

%

 

7.03

%

 

6.78

%

 

6.67

%

Average Balances
Total assets

$

8,582,219

 

$

8,597,786

 

$

8,433,100

 

$

8,304,462

 

$

8,161,389

 

$

8,538,248

 

$

7,807,013

 

Earning assets

 

7,969,363

 

 

7,951,520

 

 

7,783,850

 

 

7,653,648

 

 

7,477,795

 

 

7,904,565

 

 

7,097,421

 

Loans

 

6,763,232

 

 

6,714,240

 

 

6,535,080

 

 

6,359,564

 

 

6,120,324

 

 

6,671,687

 

 

5,726,369

 

Deposits and interest-bearing liabilities

 

7,486,595

 

 

7,538,674

 

 

7,385,946

 

 

7,278,531

 

 

7,116,910

 

 

7,470,774

 

 

6,748,783

 

Deposits

 

7,045,827

 

 

6,799,605

 

 

6,833,521

 

 

6,773,382

 

 

6,654,328

 

 

6,893,762

 

 

6,452,713

 

Stockholders’ equity

 

939,456

 

 

921,441

 

 

901,587

 

 

875,287

 

 

912,224

 

 

920,967

 

 

945,141

 

Goodwill and intangibles

 

309,330

 

 

334,862

 

 

336,418

 

 

337,207

 

 

338,583

 

 

326,771

 

 

339,946

 

Tangible equity (3)

 

630,126

 

 

586,579

 

 

565,169

 

 

538,080

 

 

573,641

 

 

594,196

 

 

605,195

 

Per Common Share Data
Earnings per share ("EPS") - Basic

$

0.69

 

$

1.35

 

$

0.51

 

$

0.71

 

$

0.79

 

$

2.55

 

$

2.15

 

EPS - Diluted

 

0.69

 

 

1.35

 

 

0.51

 

 

0.71

 

 

0.79

 

 

2.55

 

 

2.15

 

EPS - Core diluted (2)

 

0.69

 

 

0.68

 

 

0.51

 

 

0.71

 

 

0.79

 

 

1.87

 

 

2.15

 

Dividends Paid

 

0.31

 

 

0.31

 

 

0.31

 

 

0.30

 

 

0.30

 

 

0.93

 

 

0.90

 

Market Value:
High

$

22.89

 

$

21.01

 

$

27.80

 

$

30.51

 

$

29.36

 

$

27.99

 

$

32.52

 

Low

 

15.70

 

 

13.60

 

 

20.39

 

 

26.11

 

 

24.67

 

 

13.60

 

 

24.67

 

Close

 

17.06

 

 

16.02

 

 

20.73

 

 

26.97

 

 

25.70

 

 

17.06

 

 

25.70

 

Common Book Value

 

25.74

 

 

26.23

 

 

25.61

 

 

24.94

 

 

24.32

 

Tangible Common Book Value (3)

 

17.09

 

 

17.55

 

 

16.21

 

 

15.47

 

 

14.82

 

Shares outstanding, end of period (000s)

 

35,731

 

 

35,727

 

 

35,701

 

 

35,591

 

 

35,563

 

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

 

2.73

%

 

2.72

%

 

2.90

%

 

3.28

%

 

3.40

%

 

2.78

%

 

3.40

%

Return on average assets

 

1.14

%

 

2.26

%

 

0.86

%

 

1.21

%

 

1.37

%

 

1.43

%

 

1.32

%

Core return on average assets (2)

 

1.14

%

 

1.13

%

 

0.86

%

 

1.22

%

 

1.39

%

 

1.05

%

 

1.32

%

Return on average equity

 

10.43

%

 

21.06

%

 

8.07

%

 

11.46

%

 

12.26

%

 

13.24

%

 

10.88

%

Core return on average equity (2)

 

10.43

%

 

10.55

%

 

8.07

%

 

11.58

%

 

12.40

%

 

9.74

%

 

10.88

%

Return on average tangible equity

 

15.54

%

 

33.09

%

 

12.88

%

 

18.64

%

 

19.50

%

 

20.53

%

 

16.99

%

Core return on average tangible equity (2)

 

15.54

%

 

16.57

%

 

10.51

%

 

14.64

%

 

16.33

%

 

15.09

%

 

16.99

%

Efficiency ratio (4)

 

56.53

%

 

41.45

%

 

60.90

%

 

56.76

%

 

51.26

%

 

51.18

%

 

52.67

%

Core efficiency ratio (2)

 

56.53

%

 

57.49

%

 

60.90

%

 

56.76

%

 

51.26

%

 

58.33

%

 

52.67

%

Effective tax rate

 

18.36

%

 

22.33

%

 

18.44

%

 

18.59

%

 

19.22

%

 

20.53

%

 

19.24

%

Common dividend payout ratio

 

44.93

%

 

22.96

%

 

60.78

%

 

42.25

%

 

37.97

%

 

36.47

%

 

41.86

%

(1) Interest income on tax-exempt securities and loans has been adjusted to a tax-equivalent basis using the statutory federal income tax rate of 21%.
(2) Core items exclude the impact of insurance agency disposition related items. See non-GAAP reconciliations.
(3) Tangible assets = total assets less the sum of goodwill and core deposit and other intangibles. Tangible equity = total stockholders' equity less the sum of goodwill, core deposit and other intangibles, and preferred stock. Tangible common book value = tangible equity divided by shares outstanding at the end of the period.
(4) Efficiency ratio = Non-interest expense divided by sum of tax-equivalent net interest income plus non-interest income, excluding securities gains or losses, net.
Premier Financial Corp.
Yield Analysis
(dollars in thousands) Three Months Ended Nine Months Ended
9/30/23 6/30/23 3/31/23 12/31/22 9/30/22 9/30/23 9/30/22
Average Balances
Interest-earning assets:
Loans receivable (1)

$

6,763,232

 

$

6,714,240

 

$

6,535,080

 

$

6,359,564

 

$

6,120,324

 

$

6,671,687

 

$

5,726,369

 

Securities

 

1,137,730

 

 

1,155,451

 

 

1,190,359

 

 

1,236,511

 

 

1,262,435

 

 

1,160,987

 

 

1,266,681

 

Interest Bearing Deposits

 

38,210

 

 

36,730

 

 

35,056

 

 

29,884

 

 

68,530

 

 

36,677

 

 

84,745

 

FHLB stock

 

30,191

 

 

45,099

 

 

30,353

 

 

28,386

 

 

27,414

 

 

35,214

 

 

19,626

 

Total interest-earning assets

 

7,969,363

 

 

7,951,520

 

 

7,790,848

 

 

7,654,345

 

 

7,478,703

 

 

7,904,565

 

 

7,097,421

 

Non-interest-earning assets

 

612,856

 

 

646,266

 

 

642,252

 

 

650,117

 

 

682,686

 

 

633,683

 

 

709,592

 

Total assets

$

8,582,219

 

$

8,597,786

 

$

8,433,100

 

$

8,304,462

 

$

8,161,389

 

$

8,538,248

 

$

7,807,013

 

Deposits and Interest-bearing Liabilities:
Interest bearing deposits

$

5,490,945

 

$

5,195,727

 

$

5,078,510

 

$

4,901,412

 

$

4,846,419

 

$

5,256,571

 

$

4,688,047

 

FHLB advances and other

 

355,576

 

 

653,923

 

 

467,311

 

 

419,761

 

 

377,533

 

 

491,861

 

 

210,908

 

Subordinated debentures

 

85,179

 

 

85,146

 

 

85,114

 

 

85,084

 

 

85,049

 

 

85,147

 

 

85,019

 

Notes payable

 

13

 

 

-

 

 

-

 

 

304

 

 

-

 

 

4

 

 

143

 

Total interest-bearing liabilities

 

5,931,713

 

 

5,934,796

 

 

5,630,935

 

 

5,406,561

 

 

5,309,001

 

 

5,833,583

 

 

4,984,117

 

Non-interest bearing deposits

 

1,554,882

 

 

1,603,878

 

 

1,755,011

 

 

1,871,970

 

 

1,807,909

 

 

1,637,191

 

 

1,764,666

 

Total including non-interest-bearing deposits

 

7,486,595

 

 

7,538,674

 

 

7,385,946

 

 

7,278,531

 

 

7,116,910

 

 

7,470,774

 

 

6,748,783

 

Other non-interest-bearing liabilities

 

156,168

 

 

137,671

 

 

145,567

 

 

150,644

 

 

132,255

 

 

146,507

 

 

113,089

 

Total liabilities

 

7,642,763

 

 

7,676,345

 

 

7,531,513

 

 

7,429,175

 

 

7,249,165

 

 

7,617,281

 

 

6,861,872

 

Stockholders' equity

 

939,456

 

 

921,441

 

 

901,587

 

 

875,287

 

 

912,224

 

 

920,967

 

 

945,141

 

Total liabilities and stockholders' equity

$

8,582,219

 

$

8,597,786

 

$

8,433,100

 

$

8,304,462

 

$

8,161,389

 

$

8,538,248

 

$

7,807,013

 

IEAs/IBLs

 

134

%

 

134

%

 

138

%

 

142

%

 

141

%

 

136

%

 

142

%

 
Interest Income/Expense
Interest-earning assets:
Loans receivable (2)

$

86,618

 

$

81,622

 

$

76,063

 

$

72,201

 

$

65,564

 

$

244,303

 

$

177,385

 

Securities (2)

 

6,991

 

 

7,058

 

 

7,359

 

 

7,762

 

 

7,006

 

 

21,408

 

 

19,122

 

Interest Bearing Deposits

 

652

 

 

641

 

 

444

 

 

444

 

 

221

 

 

1,737

 

 

387

 

FHLB stock

 

690

 

 

905

 

 

394

 

 

482

 

 

510

 

 

1,989

 

 

743

 

Total interest-earning assets

 

94,951

 

 

90,226

 

 

84,260

 

 

80,889

 

 

73,301

 

 

269,437

 

 

197,637

 

Deposits and Interest-bearing Liabilities:
Interest bearing deposits

$

34,874

 

$

26,825

 

$

21,458

 

$

13,161

 

$

6,855

 

$

83,157

 

$

11,749

 

FHLB advances and other

 

4,597

 

 

8,217

 

 

5,336

 

 

3,941

 

 

2,069

 

 

18,150

 

 

2,609

 

Subordinated debentures

 

1,162

 

 

1,125

 

 

1,075

 

 

1,001

 

 

868

 

 

3,362

 

 

2,326

 

Notes payable

 

-

 

 

-

 

 

-

 

 

3

 

 

-

 

 

-

 

 

1

 

Total interest-bearing liabilities

 

40,633

 

 

36,167

 

 

27,869

 

 

18,106

 

 

9,792

 

 

104,669

 

 

16,685

 

Non-interest bearing deposits

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Total including non-interest-bearing deposits

 

40,633

 

 

36,167

 

 

27,869

 

 

18,106

 

 

9,792

 

 

104,669

 

 

16,685

 

Net interest income

$

54,318

 

$

54,059

 

$

56,391

 

$

62,783

 

$

63,509

 

$

164,768

 

$

180,952

 

Less: PPP income

 

(4

)

 

(5

)

 

(6

)

 

(6

)

 

(26

)

 

(15

)

 

(3,827

)

Less: Acquisition marks accretion

 

(322

)

 

(380

)

 

(387

)

 

(554

)

 

(608

)

 

(1,088

)

 

(2,051

)

Core net interest income

$

53,992

 

$

53,674

 

$

55,998

 

$

62,223

 

$

62,875

 

$

163,665

 

$

175,074

 

 
Annualized Average Rates
Interest-earning assets:
Loans receivable

 

5.12

%

 

4.86

%

 

4.66

%

 

4.54

%

 

4.29

%

 

4.88

%

 

4.13

%

Securities (3)

 

2.46

%

 

2.44

%

 

2.47

%

 

2.51

%

 

2.22

%

 

2.46

%

 

2.01

%

Interest Bearing Deposits

 

6.83

%

 

6.98

%

 

5.07

%

 

5.94

%

 

1.29

%

 

6.31

%

 

0.61

%

FHLB stock

 

9.14

%

 

8.03

%

 

5.19

%

 

6.79

%

 

7.44

%

 

7.53

%

 

5.05

%

Total interest-earning assets

 

4.77

%

 

4.54

%

 

4.33

%

 

4.23

%

 

3.92

%

 

4.54

%

 

3.71

%

Deposits and Interest-bearing Liabilities:
Interest bearing deposits

 

2.54

%

 

2.07

%

 

1.69

%

 

1.07

%

 

0.57

%

 

2.11

%

 

0.33

%

FHLB advances and other

 

5.17

%

 

5.03

%

 

4.57

%

 

3.76

%

 

2.19

%

 

4.92

%

 

1.65

%

Subordinated debentures

 

5.46

%

 

5.29

%

 

5.05

%

 

4.71

%

 

4.08

%

 

5.26

%

 

3.65

%

Notes payable

 

-

 

 

-

 

 

-

 

 

3.95

%

 

-

 

 

-

 

 

0.93

%

Total interest-bearing liabilities

 

2.74

%

 

2.44

%

 

1.98

%

 

1.34

%

 

0.74

%

 

3.59

%

 

0.67

%

Non-interest bearing deposits

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Total including non-interest-bearing deposits

 

2.17

%

 

1.92

%

 

1.51

%

 

1.00

%

 

0.55

%

 

1.87

%

 

0.33

%

Net interest spread

 

2.03

%

 

2.10

%

 

2.35

%

 

2.89

%

 

3.18

%

 

0.95

%

 

3.04

%

Net interest margin (4)

 

2.73

%

 

2.72

%

 

2.90

%

 

3.28

%

 

3.40

%

 

2.78

%

 

3.40

%

Core net interest margin (4)

 

2.71

%

 

2.70

%

 

2.88

%

 

3.25

%

 

3.36

%

 

2.76

%

 

3.29

%

 
(1) Includes average PPP loans of:

$

553

 

$

673

 

$

965

 

$

1,160

 

$

1,889

 

$

729

 

$

15,790

 

(2) Interest on certain tax exempt loans and securities is not taxable for Federal income tax purposes. In order to compare the tax-exempt yields on these assets to taxable yields, the interest earned on these assets is adjusted to a pre-tax equivalent amount based on the marginal corporate federal income tax rate of 21%.
(3) Securities yield = annualized interest income divided by the average balance of securities, excluding average unrealized gains/losses.
(4) Net interest margin is tax equivalent net interest income divided by average interest-earning assets. Core net interest margin represents net interest margin excluding PPP and acquisition marks accretion.
Premier Financial Corp.
Deposits and Liquidity
(dollars in thousands)
As of and for the Three Months Ended
9/30/23 6/30/23 3/31/23 12/31/22 9/30/22
Ending Balances
Non-interest-bearing demand deposits

$

1,545,595

 

$

1,573,837

 

$

1,649,726

 

$

1,869,509

 

$

1,826,511

 

Savings deposits

 

709,938

 

 

748,392

 

 

775,186

 

 

797,376

 

 

817,853

 

Interest-bearing demand deposits

 

580,069

 

 

594,325

 

 

646,329

 

 

653,960

 

 

665,974

 

Money market account deposits

 

1,279,551

 

 

1,282,721

 

 

1,342,451

 

 

1,493,729

 

 

1,463,600

 

Time deposits

 

925,353

 

 

904,717

 

 

856,720

 

 

768,678

 

 

630,077

 

Public funds, ICS and CDARS deposits

 

1,632,952

 

 

1,477,203

 

 

1,348,750

 

 

1,179,759

 

 

1,258,610

 

Brokered deposits

 

392,181

 

 

413,237

 

 

154,869

 

 

143,708

 

 

69,881

 

Total deposits

$

7,065,639

 

$

6,994,432

 

$

6,774,031

 

$

6,906,719

 

$

6,732,505

 

 
Average Balances
Non-interest-bearing demand deposits

$

1,554,882

 

$

1,603,878

 

$

1,755,011

 

$

1,871,970

 

$

1,807,909

 

Savings deposits

 

728,545

 

 

762,074

 

 

782,215

 

 

806,653

 

 

825,673

 

Interest-bearing demand deposits

 

575,744

 

 

603,572

 

 

637,423

 

 

651,685

 

 

681,247

 

Money market account deposits

 

1,278,381

 

 

1,311,177

 

 

1,430,905

 

 

1,418,549

 

 

1,493,019

 

Time deposits

 

912,579

 

 

872,991

 

 

825,652

 

 

685,453

 

 

610,708

 

Public funds, ICS and CDARS deposits

 

1,573,213

 

 

1,399,749

 

 

1,232,230

 

 

1,235,772

 

 

1,204,968

 

Brokered deposits

 

422,483

 

 

246,164

 

 

170,085

 

 

103,300

 

 

30,804

 

Total deposits

$

7,045,827

 

$

6,799,605

 

$

6,833,521

 

$

6,773,382

 

$

6,654,328

 

 
Average Rates
Non-interest-bearing demand deposits

 

0.00

%

 

0.00

%

 

0.00

%

 

0.00

%

 

0.00

%

Savings deposits

 

0.03

%

 

0.02

%

 

0.02

%

 

0.02

%

 

0.02

%

Interest-bearing demand deposits

 

0.11

%

 

0.10

%

 

0.07

%

 

0.07

%

 

0.07

%

Money market account deposits

 

2.02

%

 

1.73

%

 

1.54

%

 

0.81

%

 

0.40

%

Time deposits

 

2.68

%

 

2.27

%

 

1.83

%

 

1.05

%

 

0.58

%

Public funds, ICS and CDARS deposits

 

4.18

%

 

3.71

%

 

3.32

%

 

2.41

%

 

1.38

%

Brokered deposits

 

5.36

%

 

4.92

%

 

4.19

%

 

3.32

%

 

2.37

%

Total deposits

 

1.98

%

 

1.58

%

 

1.26

%

 

0.78

%

 

0.41

%

 
Other Deposits Data
Loans/Deposits Ratio

 

94.8

%

 

95.9

%

 

97.1

%

 

93.5

%

 

92.2

%

Uninsured deposits %

 

32.8

%

 

31.5

%

 

32.3

%

 

35.3

%

 

35.5

%

Adjusted uninsured deposits % (1)

 

17.7

%

 

17.3

%

 

19.6

%

 

22.2

%

 

22.2

%

Top 20 depositors %

 

14.1

%

 

12.4

%

 

12.1

%

 

5.4

%

 

11.3

%

Public funds %

 

18.8

%

 

17.5

%

 

16.5

%

 

14.8

%

 

15.9

%

Average account size (excluding brokered)

$

27.1

 

$

26.7

 

$

27.0

 

$

27.8

 

$

27.5

 

 
Securities Data
Held-to-maturity (HTM) at fair value

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

Available-for-sale (AFS) at fair value (2)

 

911,184

 

 

961,123

 

 

998,128

 

 

1,040,081

 

 

1,063,713

 

Equity investment at fair value (3)

 

5,860

 

 

6,458

 

 

6,387

 

 

7,832

 

 

15,336

 

Total securities at fair value

$

917,044

 

$

967,581

 

$

1,004,515

 

$

1,047,913

 

$

1,079,049

 

Cash+Securities/Assets

 

12.1

%

 

12.6

%

 

13.6

%

 

13.9

%

 

14.4

%

Projected AFS cash flow in next 12 months

$

66,495

 

$

64,687

 

$

73,184

 

$

73,319

 

$

76,119

 

AFS average life (years)

 

6.5

 

 

6.5

 

 

6.4

 

 

6.5

 

 

6.6

 

 
Liquidity Sources
Cash and cash equivalents

$

117,497

 

$

121,727

 

$

157,027

 

$

128,160

 

$

104,992

 

Unpledged securities at fair value

 

280,916

 

 

298,471

 

 

211,468

 

 

288,134

 

 

342,979

 

FHLB borrowing capacity

 

1,311,091

 

 

1,542,459

 

 

1,358,650

 

 

1,528,978

 

 

1,217,516

 

Brokered deposits (Company policy limit of 10%)

 

316,697

 

 

288,719

 

 

524,889

 

 

549,370

 

 

605,552

 

Bank and parent lines of credit

 

70,000

 

 

70,000

 

 

70,000

 

 

70,000

 

 

70,000

 

Federal Reserve - Discount Window and BTFP (4)

 

471,395

 

 

491,141

 

 

129,918

 

 

44,471

 

 

-

 

Total

$

2,567,596

 

$

2,812,517

 

$

2,451,952

 

$

2,609,113

 

$

2,341,039

 

Total liquidity to adjusted uninsured deposits ratio

 

204.0

%

 

230.5

%

 

183.2

%

 

168.9

%

 

155.4

%

 
(1) Adjusted for collateralized deposits, other insured deposits and intra-company accounts.
(2) Mark-to-market included in accumulated other comprehensive income.
(3) Mark-to-market included in net income each quarter.
(4) Includes borrowing capacity related to unpledged securities at par value in excess of fair value under Bank Term Funding Program.
Premier Financial Corp.
Loans and Capital
(dollars in thousands)
9/30/23 6/30/23 3/31/23 12/31/22 9/30/22
Loan Portfolio Composition
Residential real estate

$

1,797,676

 

$

1,711,632

 

$

1,624,331

 

$

1,535,574

 

$

1,478,360

 

Residential real estate construction

 

51,637

 

 

111,708

 

 

141,209

 

 

176,737

 

 

119,204

 

Total residential loans

 

1,849,313

 

 

1,823,340

 

 

1,765,540

 

 

1,712,311

 

 

1,597,564

 

 
Commercial real estate

 

2,820,410

 

 

2,848,410

 

 

2,813,441

 

 

2,762,311

 

 

2,674,078

 

Commercial construction

 

502,502

 

 

472,328

 

 

440,510

 

 

428,743

 

 

398,044

 

Commercial excluding PPP

 

1,038,939

 

 

1,068,795

 

 

1,060,351

 

 

1,054,037

 

 

1,041,423

 

Core commercial loans (1)

 

4,361,851

 

 

4,389,533

 

 

4,314,302

 

 

4,245,091

 

 

4,113,545

 

 
Consumer direct/indirect

 

203,800

 

 

210,390

 

 

212,299

 

 

213,405

 

 

212,790

 

Home equity and improvement lines

 

269,053

 

 

272,792

 

 

271,676

 

 

277,613

 

 

272,367

 

Total consumer loans

 

472,853

 

 

483,182

 

 

483,975

 

 

491,018

 

 

485,157

 

 
Deferred loan origination fees

 

12,326

 

 

11,936

 

 

11,221

 

 

11,057

 

 

10,261

 

Core loans (1)

 

6,696,343

 

 

6,707,991

 

 

6,575,038

 

 

6,459,477

 

 

6,206,527

 

PPP loans

 

526

 

 

577

 

 

791

 

 

1,143

 

 

1,181

 

Total loans

$

6,696,869

 

$

6,708,568

 

$

6,575,829

 

$

6,460,620

 

$

6,207,708

 

 
Loans held for sale

$

135,218

 

$

128,079

 

$

119,631

 

$

115,251

 

$

129,142

 

Core residential loans (1)

 

1,984,531

 

 

1,951,419

 

 

1,885,171

 

 

1,827,562

 

 

1,726,706

 

Total loans including loans held for sale but excluding PPP

 

6,831,561

 

 

6,836,070

 

 

6,694,669

 

 

6,574,728

 

 

6,335,669

 

 
Undisbursed construction loan funds - residential

$

82,689

 

$

102,198

 

$

157,934

 

$

209,306

 

$

231,598

 

Undisbursed construction loan funds - commercial

 

284,610

 

 

353,455

 

 

446,294

 

 

463,469

 

 

493,199

 

Undisbursed construction loan funds - total

 

367,299

 

 

455,653

 

 

604,228

 

 

672,775

 

 

724,797

 

Total construction loans including undisbursed funds

$

921,438

 

$

1,039,689

 

$

1,185,947

 

$

1,278,255

 

$

1,242,045

 

Gross loans (2)

$

7,051,842

 

$

7,152,285

 

$

7,168,836

 

$

7,122,338

 

$

6,922,244

 

 
Fixed rate loans %

 

49.8

%

 

49.8

%

 

49.5

%

 

48.8

%

 

48.7

%

Floating rate loans %

 

15.8

%

 

15.9

%

 

13.4

%

 

14.3

%

 

16.0

%

Adjustable rate loans repricing within 1 year %

 

2.9

%

 

1.5

%

 

2.0

%

 

2.6

%

 

0.8

%

Adjustable rate loans repricing over 1 year %

 

31.5

%

 

32.8

%

 

35.1

%

 

34.3

%

 

34.5

%

 
Commercial Real Estate Loans Composition
Non owner occupied excluding office

$

1,023,585

 

$

1,012,400

 

$

947,442

 

$

934,760

 

$

905,512

 

Non owner occupied office

 

207,869

 

 

225,046

 

 

220,668

 

 

222,300

 

 

203,565

 

Owner occupied excluding office

 

597,303

 

 

603,650

 

 

609,203

 

 

578,514

 

 

570,662

 

Owner occupied office

 

106,761

 

 

107,240

 

 

109,014

 

 

108,087

 

 

105,224

 

Multifamily

 

627,602

 

 

633,909

 

 

661,996

 

 

660,823

 

 

637,701

 

Agriculture land

 

119,710

 

 

123,104

 

 

122,384

 

 

125,384

 

 

122,416

 

Other commercial real estate

 

137,580

 

 

143,061

 

 

142,734

 

 

132,443

 

 

128,998

 

Total commercial real estate loans

$

2,820,410

 

$

2,848,410

 

$

2,813,441

 

$

2,762,311

 

$

2,674,078

 

 
Capital Balances
Total equity

$

919,567

 

$

936,971

 

$

914,450

 

$

887,721

 

$

864,960

 

Less: Regulatory goodwill and intangibles

 

303,740

 

 

304,818

 

 

330,711

 

 

331,981

 

 

332,839

 

Less: Accumulated other comprehensive income/(loss) ("AOCI")

 

(200,282

)

 

(168,721

)

 

(153,709

)

 

(173,460

)

 

(181,231

)

Common equity tier 1 capital ("CET1")

 

816,109

 

 

800,874

 

 

737,448

 

 

729,200

 

 

713,352

 

Add: Tier 1 subordinated debt

 

35,000

 

 

35,000

 

 

35,000

 

 

35,000

 

 

35,000

 

Tier 1 capital

 

851,109

 

 

835,874

 

 

772,448

 

 

764,200

 

 

748,352

 

Add: Regulatory allowances

 

80,791

 

 

80,812

 

 

80,003

 

 

78,780

 

 

76,530

 

Add: Tier 2 subordinated debt

 

50,000

 

 

50,000

 

 

50,000

 

 

50,000

 

 

50,000

 

Total risk-based capital

$

981,900

 

$

966,686

 

$

902,451

 

$

892,980

 

$

874,882

 

 
Total risk-weighted assets

$

7,364,534

 

$

7,381,940

 

$

7,370,704

 

$

7,355,979

 

$

7,385,877

 

 
Capital Ratios
CET1 Ratio

 

11.08

%

 

10.85

%

 

10.01

%

 

9.91

%

 

9.66

%

CET1 Ratio including AOCI

 

8.36

%

 

8.56

%

 

7.92

%

 

7.55

%

 

7.20

%

Tier 1 Capital Ratio

 

11.55

%

 

11.32

%

 

10.48

%

 

10.39

%

 

10.13

%

Tier 1 Capital Ratio including AOCI

 

8.84

%

 

9.04

%

 

8.39

%

 

8.03

%

 

7.68

%

Total Capital Ratio

 

13.33

%

 

13.10

%

 

12.24

%

 

12.14

%

 

11.85

%

Total Capital Ratio including AOCI

 

10.61

%

 

10.81

%

 

10.16

%

 

9.78

%

 

9.39

%

 
(1) Core loans represents total loans excluding undisbursed loan funds, deferred loan origination fees and PPP loans. Core commercial loans represents total commercial real estate, commercial and commercial construction excluding commercial undisbursed loan funds, deferred loan origination fees and PPP loans. Core residential loans represents total loans held for sale, one to four family residential real estate and residential construction excluding residential undisbursed loan funds and deferred loan origination fees.
(2) Gross loans represent total loans including undisbursed construction funds but excluding deferred loan origination fees.
Premier Financial Corp.
Loan Delinquency Information
(dollars in thousands) Total Balance Current 30 to 89 days past due % of Total Non Accrual Loans % of Total
 
September 30, 2023
One to four family residential real estate

$

1,797,676

$

1,778,106

$

7,857

0.44

%

$

11,713

0.65

%

Construction

 

921,438

 

921,438

 

-

0.00

%

 

-

0.00

%

Commercial real estate

 

2,820,410

 

2,809,421

 

24

0.00

%

 

10,965

0.39

%

Commercial

 

1,039,465

 

1,025,632

 

1,670

0.16

%

 

12,163

1.17

%

Home equity and improvement

 

269,053

 

263,806

 

3,471

1.29

%

 

1,776

0.66

%

Consumer finance

 

203,800

 

196,754

 

4,200

2.06

%

 

2,846

1.40

%

Gross loans

$

7,051,842

$

6,995,157

$

17,222

0.24

%

$

39,463

0.56

%

 
June 30, 2023
One to four family residential real estate

$

1,711,632

$

1,694,024

$

7,320

0.43

%

$

10,288

0.60

%

Construction

 

1,039,689

 

1,039,404

 

285

0.03

%

 

-

0.00

%

Commercial real estate

 

2,848,410

 

2,833,765

 

596

0.02

%

 

14,049

0.49

%

Commercial

 

1,069,372

 

1,057,057

 

4,290

0.40

%

 

8,025

0.75

%

Home equity and improvement

 

272,792

 

267,617

 

2,945

1.08

%

 

2,230

0.82

%

Consumer finance

 

210,390

 

204,404

 

3,587

1.70

%

 

2,399

1.14

%

Gross loans

$

7,152,285

$

7,096,271

$

19,023

0.27

%

$

36,991

0.52

%

 
September 30, 2022
One to four family residential real estate

$

1,478,360

$

1,464,319

$

6,232

0.42

%

$

7,809

0.53

%

Construction

 

1,242,045

 

1,242,045

 

-

0.00

%

 

-

0.00

%

Commercial real estate

 

2,674,078

 

2,660,068

 

116

0.00

%

 

13,894

0.52

%

Commercial

 

1,042,604

 

1,034,898

 

338

0.03

%

 

7,368

0.71

%

Home equity and improvement

 

272,367

 

267,077

 

3,144

1.15

%

 

2,146

0.79

%

Consumer finance

 

212,790

 

207,453

 

3,417

1.61

%

 

1,920

0.90

%

Gross loans

$

6,922,244

$

6,875,860

$

13,247

0.19

%

$

33,137

0.48

%

 
Loan Risk Ratings Information
(dollars in thousands) Total Balance Pass Rated Special Mention % of Total Classified % of Total
 
September 30, 2023
One to four family residential real estate

$

1,786,659

$

1,775,530

$

422

0.02

%

$

10,707

0.60

%

Construction

 

921,438

 

913,605

 

7,833

0.85

%

 

-

0.00

%

Commercial real estate

 

2,819,121

 

2,738,398

 

54,523

1.93

%

 

26,200

0.93

%

Commercial

 

1,034,943

 

982,927

 

31,930

3.09

%

 

20,086

1.94

%

Home equity and improvement

 

267,106

 

265,975

 

-

0.00

%

 

1,131

0.42

%

Consumer finance

 

203,584

 

200,965

 

-

0.00

%

 

2,619

1.29

%

PCD loans

 

18,991

 

13,374

 

2,814

14.82

%

 

2,803

14.76

%

Gross loans

$

7,051,842

$

6,890,774

$

97,522

1.38

%

$

63,546

0.90

%

 
June 30, 2023
One to four family residential real estate

$

1,700,468

$

1,689,666

$

484

0.03

%

$

10,318

0.61

%

Construction

 

1,039,689

 

1,031,356

 

8,333

0.80

%

 

-

0.00

%

Commercial real estate

 

2,847,035

 

2,797,688

 

20,751

0.73

%

 

28,596

1.00

%

Commercial

 

1,063,744

 

1,021,403

 

27,376

2.57

%

 

14,965

1.41

%

Home equity and improvement

 

270,722

 

269,038

 

-

0.00

%

 

1,684

0.62

%

Consumer finance

 

210,158

 

207,963

 

-

0.00

%

 

2,195

1.04

%

PCD loans

 

20,469

 

13,981

 

3,786

18.50

%

 

2,702

13.20

%

Gross loans

$

7,152,285

$

7,031,095

$

60,730

0.85

%

$

60,460

0.85

%

 
September 30, 2022
One to four family residential real estate

$

1,466,470

$

1,458,082

$

1,267

0.09

%

$

7,121

0.49

%

Construction

 

1,242,045

 

1,240,745

 

1,300

0.10

%

 

-

0.00

%

Commercial real estate

 

2,672,451

 

2,584,984

 

65,233

2.44

%

 

22,234

0.83

%

Commercial

 

1,036,441

 

1,009,384

 

20,106

1.94

%

 

6,951

0.67

%

Home equity and improvement

 

269,786

 

268,384

 

-

0.00

%

 

1,402

0.52

%

Consumer finance

 

212,493

 

210,602

 

-

0.00

%

 

1,891

0.89

%

PCD loans

 

22,558

 

17,044

 

93

0.41

%

 

5,421

24.03

%

Gross loans

$

6,922,244

$

6,789,225

$

87,999

1.27

%

$

45,020

0.65

%

Premier Financial Corp.
Mortgage and Credit Information
(dollars in thousands)
As of and for the Three Months Ended Nine Months Ended
Mortgage Banking Summary 9/30/23 6/30/23 3/31/23 12/31/22 9/30/22 9/30/23 9/30/22
Revenue from sales and servicing of mortgage loans:
Mortgage banking gains, net

$

2,584

 

$

2,242

 

$

(837

)

$

(1,285

)

$

3,363

 

$

3,989

 

$

7,072

 

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

 

1,850

 

 

1,845

 

 

1,888

 

 

1,862

 

 

1,861

 

 

5,583

 

 

5,602

 

Amortization of mortgage servicing rights

 

(1,291

)

 

(1,277

)

 

(1,219

)

 

(1,271

)

 

(1,350

)

 

(3,787

)

 

(4,128

)

Mortgage servicing rights valuation adjustments

 

131

 

 

130

 

 

(106

)

 

396

 

 

96

 

 

155

 

 

1,624

 

 

690

 

 

698

 

 

563

 

 

987

 

 

607

 

 

1,951

 

 

3,098

 

Total revenue from sale/servicing of mortgage loans

$

3,274

 

$

2,940

 

$

(274

)

$

(298

)

$

3,970

 

$

5,940

 

$

10,170

 

 
Mortgage servicing rights:
Balance at beginning of period

$

20,823

 

$

21,447

 

$

21,858

 

$

21,915

 

$

21,872

 

$

21,858

 

$

22,244

 

Loans sold, servicing retained

 

642

 

 

653

 

 

808

 

 

1,214

 

 

1,393

 

 

2,103

 

 

3,799

 

Amortization

 

(1,291

)

 

(1,277

)

 

(1,219

)

 

(1,271

)

 

(1,350

)

 

(3,787

)

 

(4,128

)

Balance at end of period

 

20,174

 

 

20,823

 

 

21,447

 

 

21,858

 

 

21,915

 

 

20,174

 

 

21,915

 

Valuation allowance:
Balance at beginning of period

 

(663

)

 

(793

)

 

(687

)

 

(1,083

)

 

(1,179

)

 

(687

)

 

(2,707

)

Impairment recovery (charges)

 

131

 

 

130

 

 

(106

)

 

396

 

 

96

 

 

155

 

 

1,624

 

Balance at end of period

 

(532

)

 

(663

)

 

(793

)

 

(687

)

 

(1,083

)

 

(532

)

 

(1,083

)

Net carrying value at end of period

$

19,642

 

$

20,160

 

$

20,654

 

$

21,171

 

$

20,832

 

$

19,642

 

$

20,832

 

 
Allowance for credit losses - loans
Beginning allowance

$

75,921

 

$

74,273

 

$

72,816

 

$

70,626

 

$

67,074

 

$

72,816

 

$

66,468

 

Provision (benefit) for credit losses - loans

 

245

 

 

1,410

 

 

3,944

 

 

3,020

 

 

3,706

 

 

5,599

 

 

9,483

 

Net recoveries (charge-offs)

 

347

 

 

238