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Premier Financial Corp. Announces Second Quarter 2023 Results

Completes sale of insurance agency for $36 million gain

Strengthens capital, liquidity and interest rate asset sensitivity

Second Quarter 2023 Highlights

  • Completed sale of insurance agency at a significant gain that strengthens capital without diluting future earnings
  • Executed hedges to improve asset-sensitivity and provide protection against additional rate increases
  • CET1 ratio increased 80 basis points to 10.81% and tangible equity ratio increased 52 basis points to 7.55% from the prior quarter
  • Loan growth of $132.7 million (up 8.1% annualized), including $75.2 million for commercial loans excluding PPP (up 7.0% annualized)
  • Declared dividend of $0.31 per share, up 3.3% from prior year comparable period

Premier Financial Corp. (Nasdaq: PFC) (“Premier” or the “Company”) announced today 2023 second quarter results, including net income of $48.4 million or $1.35 per diluted common share, compared to $22.4 million, or $0.63 per diluted common share, for the second quarter of 2022. Second quarter 2023 results include the impact of the disposition of the Company’s insurance agency, First Insurance Group (“FIG”), 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 transaction, second quarter 2023 earnings would be $0.68 per diluted share.

“Premier’s second quarter performance reflected the expected increase in quarterly core earnings to $0.68 per share,” said Gary Small, President and CEO of Premier. “The improvement was driven by multiple factors. Strong loan growth resulting from selective new business loan origination, coupled with a strong funding pace of prior year construction commitments. C&I commitments totaled 49% of second quarter commercial loan origination activity. Total deposits grew $220 million, or 3.3%, for the quarter. Customer deposit balance movement stabilized, down just $38 million, or 0.6%.”

“Core non-interest income revenue grew 9.4% versus second quarter 2022, and core expenses fell 4.6% versus first quarter 2023 reflecting the progress made associated with the cost reduction initiative announced last quarter. Margin continued to decline but at a more moderate pace. Hedging activity was initiated in June that will both add to near term net interest income and protect the organization against the unfavorable impacts of future Fed Fund rate increases. Our consumer customers continue to exhibit active spending habits and credit portfolio indicators remain very favorable. The commercial loan portfolio continues to perform well with no unfavorable trends or early indicators of stress,” added Small.

“The sale of the insurance agency delivered positive outcomes for all stakeholders,” Small continued. “The combination of FIG and Risk Strategies brings new opportunities for the FIG team; our joint bank/agency clients will benefit from a broader product offering and expanded agency capabilities; and the Premier shareholders benefit from a tremendous capital boost with the transaction increasing tangible book value by $1.37 per share. As we look forward, the organization is focused on moderate balance sheet growth, continued non-interest revenue improvement (adjusting for FIG), and strong expense management. Deposit mix will continue to be a challenge although our beta management techniques continue to evolve.”

Insurance agency sale

As previously announced, on June 30, 2023 the Company completed the sale of FIG to Risk Strategies Corporation. The disposition generated a gain on sale of $36.3 million before transaction costs of $3.7 million. The transaction strengthened capital by increasing equity $24.2 million (24 basis points and $0.68 per share) and tangible equity by $48.8 million (54 basis points and $1.37 per share), which included the recovery of goodwill and intangibles of $24.7 million at June 30, 2023. Utilization of sale proceeds will improve net interest income that effectively offsets pre-tax earnings previously generated from the insurance agency assuming paydown of borrowings and will become accretive to earnings upon deployment into higher yielding loans.

Addressing interest rate sensitivity

During June 2023, the Company completed a series of balance sheet hedges to improve asset-sensitivity and provide protection against additional rate increases. In total, the Company executed $500 million notional of pay-fixed/receive-variable interest rate swaps with half 2-year and half 3-year in duration. The average pay rate for these swaps is approximately 4.12%. Based on rates as of June 30, 2023, these swaps are expected to generate approximately $4.7 million of annualized pre-tax net interest income. The full quarter benefit of these swaps will begin to be realized in the third quarter, and the positive impact will increase as SOFR increases. Each 25 basis point increase in SOFR is expected to generate an additional $625 thousand of annualized pre-tax net interest income, including the impact of the new swaps and the prior $250 million notional receive-fixed/pay-variable swap.

Quarterly results

Capital, deposits and liquidity

Capital improved significantly during the second quarter of 2023. Total equity increased $22.5 million, or 2.5%, including the positive impact of the insurance agency sale offset by a $15.0 million detriment in accumulated other comprehensive income (“AOCI”), primarily due to a negative valuation adjustment on the available-for-sale (“AFS”) securities portfolio. Tangible equity increased $48.4 million, or 8.4%, and the tangible equity ratio increased 52 basis points to 7.55%, or 9.58% excluding AOCI. Regulatory ratios also improved during the second quarter of 2023, including CET1 of 10.81%, Tier 1 of 11.28% and Total Capital of 13.05%, each up 80 basis points. All of these ratios also exceed well-capitalized guidelines pro forma for AOCI, including CET1 of 8.53%, Tier 1 of 9.00% and Total Capital of 10.77%.

Total deposits increased 3.3%, or $220.4 million, during the second quarter of 2023, due to a $258.4 million increase in brokered deposits offset partly by a net decrease of $38.0 million in customer deposits. Total average interest-bearing deposit costs increased 38 basis points to 2.07% for the second 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 sought to obtain yield. Average interest-bearing deposit costs excluding brokered deposits and acquisition marks were 2.08% during the month of June, representing a cumulative beta of 37% compared to the change in the monthly average effective Federal Funds rate that increased 500 basis points to 5.08% since December 2021, as reported by the Federal Reserve Economic Data.

Uninsured deposits at June 30, 2023 were 31.5% of total deposits, or 17.3% adjusting for collateralized deposits, other insured deposits and internal company accounts. The Company successfully established eligibility for the Federal Reserve Borrower-In-Custody Collateral Program, which increased borrowing capacity by more than $300 million during the second quarter. Total quantifiable liquidity sources totaled $2.8 billion, or 230.5% of adjusted uninsured deposits, and were comprised of the following at June 30, 2023:

  • $121.7 million of cash and cash equivalents with a 5.15% Federal Reserve rate;
  • $298.5 million of unpledged securities with an average yield of 3.02%;
  • $1.5 billion of FHLB borrowing capacity with an overnight borrowing rate of 5.17%;
  • $288.7 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 6.08%; and
  • $491.1 million of borrowing capacity at the Federal Reserve with an average rate of 5.31%.

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 $64.7 million over the next 12 months.

Net interest income and margin

Net interest income of $54.1 million on a tax equivalent (“TE”) basis in the second quarter of 2023 was down 4.1% from $56.4 million in the first quarter of 2023 and 8.9% from $59.3 million in the second quarter of 2022. The TE net interest margin of 2.72% in the second quarter of 2023 decreased 18 basis points from 2.90% in the first quarter of 2023 and 64 basis points from 3.36% in the second quarter of 2022. Results for all periods include the impact of PPP as well as acquisition marks and related accretion. Second quarter 2023 includes $168 thousand of accretion in interest income, $212 thousand of accretion in interest expense, and $5 thousand of interest income on average balances of $673 thousand for PPP.

Excluding the impact of acquisition marks accretion and PPP loans, core net interest income was $53.7 million, down 4.2% from $56.0 million in the first quarter of 2023 and 8.2% from $58.5 million in the second quarter of 2022. Additionally, the core net interest margin was 2.70% for the second quarter of 2023, down 18 basis points from 2.88% for the first quarter of 2023 and 62 basis points from 3.32% for the second quarter of 2022. These results are positively impacted by the combination of loan growth and higher loan yields, which were 4.86% for the second quarter of 2023 compared to 4.66% in the first quarter of 2023 and 3.99% in the second quarter of 2022. Excluding the impact of PPP, balance sheet hedges and acquisition marks accretion, loan yields were 5.01% in June 2023 for an increase of 129 basis points since December 2021, which represents a cumulative beta of 25% compared to the change in the monthly average effective Federal Funds rate for the same period.

The cost of funds in the second quarter of 2023 was 1.92%, up 41 basis points from the first quarter of 2023 and up 168 basis points from the second quarter 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. The linked quarter increase is due to higher rates on FHLB borrowings and higher average deposit costs discussed above. Excluding the impact of balance sheet hedges and acquisition marks accretion, cost of funds were 2.05% in June 2023 for an increase of 184 basis points since December 2021, which represents a cumulative beta of 37% compared to the change in the monthly average effective Federal Funds rate for the same period.

“The second quarter 2023 individual monthly margin results were much more stable than those experienced in fourth quarter 2022 and first quarter 2023, which were in constant decline,” said Small. “This reflects less ‘early mover’ activity affecting our deposit book combined with less active Fed Fund rate movement during the quarter. While we expect to continue to see deposit mix movement in the book, the second quarter represents a trend in the right direction.”

Non-interest income

Excluding the $36.3 million gain on the sale of the insurance agency, total non-interest income in the second quarter of 2023 of $17.1 million was up 36.8% from $12.5 million in the first quarter of 2023 and 18.7% from $14.4 million in the second quarter of 2022, primarily due to fluctuations in mortgage banking and gains/losses on securities. Mortgage banking income increased $3.2 million on a linked quarter basis and $1.0 million year-over-year as a result of increased gains primarily from increases in hedge valuations. While mortgage pipeline hedges effectively net out over the life of the loans, individual periods can be volatile as market rates and prices change.

Security gains were $64 thousand in the second quarter of 2023, primarily due to increased valuations on equity securities. This compares to a loss of $1.4 million in the first quarter of 2023 and to $1.2 million of losses each from decreased valuations on equity securities. The company also sold $5 million of AFS securities for a $7 thousand loss with average yields less than FHLB borrowing rates during the second quarter of 2023. Service fees in the second quarter of 2023 were $7.2 million, an 11.9% increase from $6.4 million in the first quarter of 2023 and a 7.7% increase from $6.7 million in the second quarter of 2022, primarily due to fluctuations in loan fees including commercial customer swap activity. Insurance commissions were $4.1 million in the second quarter of 2023 down from $4.7 million in the first quarter of 2023 and $4.3 million in the second quarter of 2022 with the linked quarter decrease primarily due to $0.9 million of contingent commissions that only occur in the first quarter. Wealth management income of $1.5 million in the second quarter of 2023 was consistent with $1.5 million in the first quarter of 2023 and up from $1.4 million in the second quarter of 2022. BOLI income of $1.0 million in the second quarter of 2023 decreased from $1.4 million in the first quarter of 2023 and was flat from $1.0 million in the second quarter of 2022, with $0.4 million of claim gains in the first quarter of 2023 compared to none in the second quarter periods.

“Consumer deposit related fees and wealth management income for the current quarter exceed second quarter 2022 results by 7.7% and 8.7%, respectively,” said Small “As previously mentioned, our consumer client activity remains robust and the current equity and fixed income markets bode well for the asset management function over the remainder of the year.”

Non-interest expenses

Excluding transaction costs for the insurance agency sale, non-interest expenses in the second quarter of 2023 were $40.8 million, a 4.6% decrease from $42.8 million in the first quarter of 2023 but a 4.5% increase from $39.1 million in the second quarter of 2022. Compensation and benefits were $24.2 million in the second quarter of 2023, compared to $25.7 million in the first quarter of 2023 and $22.3 million in the second quarter of 2022. The linked quarter decrease was primarily due to cost saving initiatives that began during the second quarter of 2023. The year-over-year increase was primarily due to costs related to higher staffing levels for our 2022 growth initiatives and higher base compensation, including 2022 mid-year adjustments and 2023 annual adjustments. Other expenses decreased $0.5 million on a linked quarter basis due to cost saving initiatives, and all other non-interest expenses increased a net $83 thousand on a linked quarter basis. FDIC premiums increased $1.0 million on a year-over-year basis due to higher rates and our 2022 growth initiatives and all other non-interest expenses decreased a net $1.1 million on a year-over-year basis due to cost saving initiatives. The efficiency ratio (excluding transaction costs and the FIG gain on sale) for the second quarter of 2023 of 57.5% improved from 60.9% in the first quarter of 2023 due to cost saving initiatives but worsened from 52.2% in the second quarter of 2022 due to lower revenues.

“Executing on our cost saving initiatives helped drive an almost 5% decrease in expenses excluding transaction costs and a 3.4% improvement to our core efficiency ratio from the prior quarter,” said Paul Nungester, CFO of Premier. “We currently estimate full year core expenses to be $158 million, down $5 million from our prior estimate of $163 million, including $6 million due to the sale of our insurance agency offset by $1 million of other costs including higher FDIC premiums.”

Credit quality

Non-performing assets totaled $37.6 million, or 0.44% of assets, at June 30, 2023, an increase from $34.8 million at March 31, 2023, and from $35.2 million at June 30, 2022. Loan delinquencies increased to $19.0 million, or 0.27% of loans, at June 30, 2023, from $11.1 million at March 31, 2023, and from $11.2 million at June 30, 2022. Classified loans totaled $60.5 million, or 0.85% of loans, as of June 30, 2023, an increase from $44.9 million at March 31, 2023, and from $48.8 million at June 30, 2022.

The 2023 second quarter results include net recoveries of $0.2 million and a total provision expense of $0.5 million, compared with net loan charge-offs of $5.3 million and a total provision expense of $6.6 million for the same period in 2022. The prior year charge-offs were primarily due to the student loan servicer credit that had been previously fully reserved. The allowance for credit losses as a percentage of total loans was 1.13% at June 30, 2023, compared with 1.13% at March 31, 2023, and 1.14% at June 30, 2022. The allowance for credit losses as a percentage of total loans excluding PPP and including unaccreted acquisition marks was 1.16% at June 30, 2023, compared with 1.16% at March 31, 2023, and 1.21% at June 30, 2022. The continued economic improvement following the 2020 pandemic-related downturn has resulted in a year-over-year decrease in the allowance percentages.

Year to date results

For the six-month period ended June 30, 2023, net income totaled $66.5 million, or $1.86 per diluted common share, compared to $48.7 million, or $1.36 per diluted common share for the six months ended June 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, first half 2023 earnings were $1.19 per diluted share.

Net interest income of $110.4 million on a TE basis for the first half of 2023 was down 6.0% from $117.4 million in the first half of 2022. The TE net interest margin of 2.81% in the first half of 2023 decreased 59 basis points from 3.40% in the first half of 2022. Results for all periods include the impact of PPP as well as acquisition marks and related accretion. First half 2023 includes $333 thousand of accretion in interest income, $433 thousand of accretion in interest expense, and $11 thousand of interest income on average balances of $818 thousand for PPP. Excluding the impact of acquisition marks accretion and PPP loans, core net interest income was $109.7 million, down 2.3% from $112.2 million in the first half of 2022. Additionally, the core net interest margin was 2.79% for the first half of 2023, down 47 basis points from 3.26% for the first half of 2022. These results are positively impacted by the combination of loan growth and higher loan yields, which were 4.76% for the first half of 2023 compared to 4.05% in the first half of 2022. The cost of funds in the first half of 2023 was 1.72%, up 151 basis points from the first half 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 the $36.3 million gain on the sale of the insurance agency, total non-interest income in the first half of 2023 of $29.5 million was down 5.5% from $31.2 million in the first half of 2022. Mortgage banking income decreased $3.5 million year-over-year as a result of a $2.3 million decrease in gains primarily from lower production and margin as well as a $24 thousand MSR valuation gain in the second quarter of 2023 compared to a $1.5 million gain in the first half of 2022.

Security losses were $1.3 million in the first half 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 half of 2022. The company also sold $21 million of AFS securities for a $27 thousand gain with average yields less than FHLB borrowing rates during the first half of 2023. Service fees in the first half of 2023 were $13.6 million, a 7.4% increase from $12.7 million in the first half of 2022, primarily due to fluctuations in loan fees including commercial customer swap activity and consumer activity for interchange and ATM/NSF charges. Insurance commissions were $8.9 million in the first half of 2023 down slightly from $9.0 million in the first half of 2022 due to $0.9 million of contingent commissions in 2023 compared to $1.1 million in 2022. Wealth management income of $3.0 million in the first half of 2023 was up slightly from $2.9 million in the first half of 2022. BOLI income of $2.4 million in the first half of 2023 increased from $2.0 million in the first half of 2022 with $0.4 million of claim gains in the first half of 2023 compared to none in the first half of 2022.

Excluding transaction costs for the insurance agency sale, non-interest expenses in the first half of 2023 were $83.6 million, a 4.0% increase from $80.4 million in the first half of 2022. Compensation and benefits were $49.8 million in the first half of 2023, compared to $47.9 million in the first half of 2022. The year-over-year increase was primarily due to costs related to higher staffing levels for our 2022 growth initiatives and higher base compensation, including 2022 mid-year adjustments and 2023 annual adjustments, offset partly by cost saving initiatives that began during the second quarter of 2023. FDIC premiums increased $1.7 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 $0.4 million on a year-over-year basis. The efficiency ratio (excluding transaction costs and the FIG gain on sale) for the first half of 2023 of 59.2% worsened from 53.4% in the first half of 2022 due to lower revenues partly offset by cost saving initiatives that began during the second quarter of 2023.

The 2023 first half results include net loan charge-offs of $2.2 million and a total provision expense of $4.2 million, compared with net loan charge-offs of $5.2 million and a total provision expense of $7.5 million for the same period in 2022. The provision expense for both years is primarily due to relative loan growth.

Total assets at $8.62 billion

Total assets at June 30, 2023, were $8.62 billion, compared to $8.56 billion at March 31, 2023, and $8.01 billion at June 30, 2022. Loans receivable were $6.71 billion at June 30, 2023, compared to $6.58 billion at March 31, 2023, and $5.90 billion at June 30, 2022. At June 30, 2023, loans receivable increased $132.7 million on a linked quarter basis, or 8.1% annualized. Commercial loans excluding PPP increased by $75.2 million from March 31, 2023, or 7.0% annualized. Securities at June 30, 2023, were $0.97 billion, compared to $1.00 billion at March 31, 2023, and $1.15 billion at June 30, 2022. All securities are either AFS or trading and are reflected at fair value on the balance sheet. Also, at June 30, 2023, goodwill and other intangible assets totaled $309.9 million compared to $335.8 million at March 31, 2023, and $339.3 million at June 30, 2022, with the decreases attributable to intangibles amortization and the FIG sale.

Total non-brokered deposits at June 30, 2023, were $6.58 billion, compared with $6.62 billion at March 31, 2023, and $6.52 billion at June 30, 2022. At June 30, 2023, customer deposits increased $64.9 million on a year-over-year basis, or 1.0%. Brokered deposits were $413.2 million at June 30, 2023, compared to $154.9 million at March 31, 2023 and none at June 30, 2022.

Total stockholders’ equity was $937.0 million at June 30, 2023, compared to $914.5 million at March 31, 2023, and $901.1 million at June 30, 2022. The quarterly increase in stockholders’ equity was primarily due to net earnings after dividends including the impact of the insurance agency sale partly offset by a decrease in AOCI, which was primarily related to $12.1 million for a negative valuation adjustment on the AFS securities portfolio. 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 $35.1 million of negative valuation adjustments on the AFS securities portfolio. At June 30, 2023, 1,199,634 common shares remained available for repurchase under the Company’s existing repurchase program.

Dividend to be paid August 11

The Board of Directors declared a quarterly cash dividend of $0.31 per common share payable August 11, 2023, to shareholders of record at the close of business on August 4, 2023. The dividend represents an annual dividend of 6.5 percent based on the Premier common stock closing price on July 24, 2023. Premier has approximately 35,730,000 common shares outstanding.

Conference call

Premier will host a conference call at 11:00 a.m. ET on Wednesday, July 26, 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 374150. Internet access to the call is also available (in listen-only mode) at the following URL: https://events.q4inc.com/attendee/827280709. 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 June 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.          
           
 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

June 30,

(in thousands)  

2023

 

2023

 

2022

 

2022

 

2022

           
Assets          
Cash and cash equivalents          
Cash and amounts due from depositories  

 $

              71,096

 

 

 $

                68,628

 

 

 $

                88,257

 

 

 $

                67,124

 

 

 $

                62,080

 

Interest-bearing deposits  

 

                  50,631

 

 

 

                   88,399

 

 

 

                   39,903

 

 

 

                   37,868

 

 

 

                   72,314

 

 

 

               121,727

 

 

 

                 157,027

 

 

 

                 128,160

 

 

 

                 104,992

 

 

 

                 134,394

 

           
Available-for-sale, carried at fair value  

 

               961,123

 

 

 

                 998,128

 

 

 

              1,040,081

 

 

 

              1,063,713

 

 

 

              1,140,466

 

Equity securities, carried at fair value  

 

                    6,458

 

 

 

                     6,387

 

 

 

                     7,832

 

 

 

                   15,336

 

 

 

                   13,293

 

Securities investments  

 

               967,581

 

 

 

              1,004,515

 

 

 

              1,047,913

 

 

 

              1,079,049

 

 

 

              1,153,759

 

           
Loans (1)  

 

            6,708,568

 

 

 

              6,575,829

 

 

 

              6,460,620

 

 

 

              6,207,708

 

 

 

              5,890,823

 

Allowance for credit losses - loans  

 

                (75,921

)

 

 

                  (74,273

)

 

 

                  (72,816

)

 

 

                  (70,626

)

 

 

                  (67,074

)

Loans, net  

 

            6,632,647

 

 

 

              6,501,556

 

 

 

              6,387,804

 

 

 

              6,137,082

 

 

 

              5,823,749

 

Loans held for sale  

 

               128,079

 

 

 

                 119,604

 

 

 

                 115,251

 

 

 

                 129,142

 

 

 

                 145,092

 

Mortgage servicing rights  

 

                  20,160

 

 

 

                   20,654

 

 

 

                   21,171

 

 

 

                   20,832

 

 

 

                   20,693

 

Accrued interest receivable  

 

                  30,056

 

 

 

                   29,388

 

 

 

                   28,709

 

 

 

                   26,021

 

 

 

                   22,533

 

Federal Home Loan Bank stock  

 

                  39,887

 

 

 

                   37,056

 

 

 

                   29,185

 

 

 

                   28,262

 

 

 

                   23,991

 

Bank Owned Life Insurance  

 

               171,856

 

 

 

                 170,841

 

 

 

                 170,713

 

 

 

                 169,728

 

 

 

                 168,746

 

Office properties and equipment  

 

                  55,736

 

 

 

                   55,982

 

 

 

                   55,541

 

 

 

                   53,747

 

 

 

                   54,060

 

Real estate and other assets held for sale  

 

                       561

 

 

 

                        393

 

 

 

                        619

 

 

 

                        416

 

 

 

                        462

 

Goodwill  

 

               295,602

 

 

 

                 317,988

 

 

 

                 317,988

 

 

 

                 317,948

 

 

 

                 317,948

 

Core deposit and other intangibles  

 

                  14,298

 

 

 

                   17,804

 

 

 

                   19,074

 

 

 

                   19,972

 

 

 

                   21,311

 

Other assets  

 

               138,021

 

 

 

                 129,508

 

 

 

                 133,214

 

 

 

                 148,949

 

 

 

                 123,886

 

Total Assets  

 $

         8,616,211

 

 

 $

           8,562,316

 

 

 $

           8,455,342

 

 

 $

           8,236,140

 

 

 $

           8,010,624

 

           
Liabilities and Stockholders’ Equity          
Non-interest-bearing deposits  

 $

         1,573,837

 

 

 $

           1,649,726

 

 

 $

           1,869,509

 

 

 $

           1,826,511

 

 

 $

           1,786,516

 

Interest-bearing deposits  

 

            5,007,358

 

 

 

              4,969,436

 

 

 

              4,893,502

 

 

 

              4,836,113

 

 

 

              4,729,828

 

Brokered deposits  

 

               413,237

 

 

 

                 154,869

 

 

 

                 143,708

 

 

 

                   69,881

 

 

 

                             -

 

Total deposits  

 

            6,994,432

 

 

 

              6,774,031

 

 

 

              6,906,719

 

 

 

              6,732,505

 

 

 

              6,516,344

 

Advances from FHLB  

 

               455,000

 

 

 

                 658,000

 

 

 

                 428,000

 

 

 

                 411,000

 

 

 

                 380,000

 

Subordinated debentures  

 

                  85,166

 

 

 

                   85,123

 

 

 

                   85,103

 

 

 

                   85,071

 

 

 

                   85,039

 

Advance payments by borrowers  

 

                  26,045

 

 

 

                   26,300

 

 

 

                   34,188

 

 

 

                   33,511

 

 

 

                   40,344

 

Reserve for credit losses - unfunded commitments  

 

                    5,708

 

 

 

                     6,577

 

 

 

                     6,816

 

 

 

                     7,061

 

 

 

                     6,755

 

Other liabilities  

 

               112,889

 

 

 

                   97,835

 

 

 

                 106,795

 

 

 

                 102,032

 

 

 

                   80,995

 

Total Liabilities  

 

            7,679,240

 

 

 

              7,647,866

 

 

 

              7,567,621

 

 

 

              7,371,180

 

 

 

              7,109,477

 

Stockholders’ Equity          
Preferred stock  

 

                             -

 

 

 

                             -

 

 

 

                             -

 

 

 

                             -

 

 

 

                             -

 

Common stock, net  

 

                       306

 

 

 

                        306

 

 

 

                        306

 

 

 

                        306

 

 

 

                        306

 

Additional paid-in-capital  

 

               689,579

 

 

 

                 689,807

 

 

 

                 691,453

 

 

 

                 691,578

 

 

 

                 690,905

 

Accumulated other comprehensive income (loss)  

 

              (168,721

)

 

 

                (153,709

)

 

 

                (173,460

)

 

 

                (181,231

)

 

 

                (126,754

)

Retained earnings  

 

               547,336

 

 

 

                 510,021

 

 

 

                 502,909

 

 

 

                 488,305

 

 

 

                 470,779

 

Treasury stock, at cost  

 

              (131,529

)

 

 

                (131,975

)

 

 

                (133,487

)

 

 

                (133,998

)

 

 

                (134,089

)

Total Stockholders’ Equity  

 

               936,971

 

 

 

                 914,450

 

 

 

                 887,721

 

 

 

                 864,960

 

 

 

                 901,147

 

Total Liabilities and Stockholders’ Equity  

 $

         8,616,211

 

 

 $

           8,562,316

 

 

 $

           8,455,342

 

 

 $

           8,236,140

 

 

 $

           8,010,624

 

           
(1) Includes PPP loans of:  

 $

                    577

 

 

 $

                     791

 

 

 $

                  1,143

 

 

 $

                  1,181

 

 

 $

                  4,561

 

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

 $

    81,616

 

 

 $

     76,057

 

 

 $

       72,194

 

 

 $

     65,559

 

 $

     56,567

 

 

 $

    157,674

 

 

 $

      111,808

 

Investment securities  

 

          6,997

 

 

 

          7,261

 

 

 

            7,605

 

 

 

          6,814

 

 

          6,197

 

 

 

          14,257

 

 

 

           11,676

 

Interest-bearing deposits  

 

             641

 

 

 

             444

 

 

 

               444

 

 

 

             221

 

 

             120

 

 

 

            1,085

 

 

 

                166

 

FHLB stock dividends  

 

             905

 

 

 

             394

 

 

 

               482

 

 

 

             510

 

 

             174

 

 

 

            1,299

 

 

 

                233

 

Total interest income  

 

       90,159

 

 

 

        84,156

 

 

 

          80,725

 

 

 

        73,104

 

 

        63,058

 

 

 

       174,315

 

 

 

         123,883

 

Interest Expense:              
Deposits  

 

       26,825

 

 

 

        21,458

 

 

 

          13,161

 

 

 

          6,855

 

 

          2,671

 

 

 

          48,283

 

 

 

             4,893

 

FHLB advances  

 

          8,217

 

 

 

          5,336

 

 

 

            3,941

 

 

 

          2,069

 

 

             527

 

 

 

          13,554

 

 

 

                540

 

Subordinated debentures  

 

          1,125

 

 

 

          1,075

 

 

 

            1,000

 

 

 

             868

 

 

             763

 

 

 

            2,199

 

 

 

             1,459

 

Notes Payable  

 

                   -

 

 

 

                  -

 

 

 

                   4

 

 

 

                  -

 

 

                 1

 

 

 

                     -

 

 

 

                    1

 

Total interest expense  

 

       36,167

 

 

 

        27,869

 

 

 

          18,106

 

 

 

          9,792

 

 

          3,962

 

 

 

          64,036

 

 

 

             6,893

 

Net interest income  

 

       53,992

 

 

 

        56,287

 

 

 

          62,619

 

 

 

        63,312

 

 

        59,096

 

 

 

       110,279

 

 

 

         116,990

 

Provision (benefit) for credit losses - loans  

 

          1,410

 

 

 

          3,944

 

 

 

            3,020

 

 

 

          3,706

 

 

          5,151

 

 

 

            5,354

 

 

 

             5,777

 

Provision (benefit) for credit losses - unfunded commitments  

 

           (870

)

 

 

            (238

)

 

 

             (246

)

 

 

             306

 

 

          1,415

 

 

 

          (1,108

)

 

 

             1,724

 

Total provision (benefit) for credit losses  

 

             540

 

 

 

          3,706

 

 

 

            2,774

 

 

 

          4,012

 

 

          6,566

 

 

 

            4,246

 

 

 

             7,501

 

Net interest income after provision  

 

       53,452

 

 

 

        52,581

 

 

 

          59,845

 

 

 

        59,300

 

 

        52,530

 

 

 

       106,033

 

 

 

         109,489

 

Non-interest Income:              
Service fees and other charges  

 

          7,190

 

 

 

          6,428

 

 

 

            6,632

 

 

 

          6,545

 

 

          6,676

 

 

 

          13,618

 

 

 

           12,676

 

Mortgage banking income  

 

          2,940

 

 

 

            (274

)

 

 

             (299

)

 

 

          3,970

 

 

          1,948

 

 

 

            2,666

 

 

 

             6,200

 

Gain (loss) on sale of non-mortgage loans  

 

               71

 

 

 

                  -

 

 

 

                   -

 

 

 

                  -

 

 

                  -

 

 

 

                  71

 

 

 

                     -

 

Gain on sale of insurance agency  

 

       36,296

 

 

 

                  -

 

 

 

                   -

 

 

 

                  -

 

 

                  -

 

 

 

          36,296

 

 

 

                     -

 

Gain (loss) on sale of available for sale securities  

 

                (7

)

 

 

               34

 

 

 

                   1

 

 

 

                  -

 

 

                  -

 

 

 

                  27

 

 

 

                     -

 

Gain (loss) on equity securities  

 

               71

 

 

 

         (1,445

)

 

 

            1,209

 

 

 

               43

 

 

         (1,161

)

 

 

          (1,374

)

 

 

            (1,804

)

Insurance commissions  

 

          4,131

 

 

 

          4,725

 

 

 

            3,576

 

 

 

          3,488

 

 

          4,334

 

 

 

            8,856

 

 

 

             8,973

 

Wealth management income  

 

          1,537

 

 

 

          1,485

 

 

 

            1,582

 

 

 

          1,355

 

 

          1,414

 

 

 

            3,022

 

 

 

             2,891

 

Income from Bank Owned Life Insurance   

 

          1,015

 

 

 

          1,417

 

 

 

               984

 

 

 

             983

 

 

             983

 

 

 

            2,432

 

 

 

             1,979

 

Other non-interest income  

 

             102

 

 

 

               92

 

 

 

               543

 

 

 

             320

 

 

             171

 

 

 

               194

 

 

 

                313

 

Total Non-interest Income  

 

       53,346

 

 

 

        12,462

 

 

 

          14,228

 

 

 

        16,704

 

 

        14,365

 

 

 

          65,808

 

 

 

           31,228

 

Non-interest Expense:              
Compensation and benefits  

 

       24,175

 

 

 

        25,658

 

 

 

          24,999

 

 

 

        24,522

 

 

        22,334

 

 

 

          49,833

 

 

 

           47,875

 

Occupancy  

 

          3,320

 

 

 

          3,574

 

 

 

            3,383

 

 

 

          3,463

 

 

          3,494

 

 

 

            6,894

 

 

 

             7,194

 

FDIC insurance premium  

 

          1,786

 

 

 

          1,288

 

 

 

            1,276

 

 

 

             976

 

 

             802

 

 

 

            3,074

 

 

 

             1,395

 

Financial institutions tax  

 

             961

 

 

 

             852

 

 

 

               795

 

 

 

          1,050

 

 

          1,074

 

 

 

            1,813

 

 

 

             2,265

 

Data processing  

 

          3,640

 

 

 

          3,863

 

 

 

            3,882

 

 

 

          3,121

 

 

          3,442

 

 

 

            7,503

 

 

 

             6,777

 

Amortization of intangibles  

 

          1,223

 

 

 

          1,270

 

 

 

            1,293

 

 

 

          1,338

 

 

          1,380

 

 

 

            2,493

 

 

 

             2,818

 

Transaction costs  

 

          3,652

 

 

 

                  -

 

 

 

                   -

 

 

 

                  -

 

 

                  -

 

 

 

            3,652

 

 

 

                     -

 

Other non-interest expense  

 

          5,738

 

 

 

          6,286

 

 

 

            7,400

 

 

 

          6,629

 

 

          6,563

 

 

 

          12,024

 

 

 

           12,060

 

Total Non-interest Expense  

 

       44,495

 

 

 

        42,791

 

 

 

          43,028

 

 

 

        41,099

 

 

        39,089

 

 

 

          87,286

 

 

 

           80,384

 

Income before income taxes   

 

       62,303

 

 

 

        22,252

 

 

 

          31,045

 

 

 

        34,905

 

 

        27,806

 

 

 

          84,555

 

 

 

           60,333

 

Income tax expense  

 

       13,912

 

 

 

          4,103

 

 

 

            5,770

 

 

 

          6,710

 

 

          5,446

 

 

 

          18,015

 

 

 

           11,616

 

Net Income  

 $

    48,391

 

 

 $

     18,149

 

 

 $

       25,275

 

 

 $

     28,195

 

 $

     22,360

 

 

 $

      66,540

 

 

 $

        48,717

 

               
               
Earnings per common share:              
Basic  

 $

         1.35

 

 

 $

         0.51

 

 

 $

           0.71

 

 

 $

         0.79

 

 $

         0.63

 

 

 $

           1.86

 

 

 $

            1.36

 

Diluted  

 $

         1.35

 

 

 $

         0.51

 

 

 $

           0.71

 

 

 $

         0.79

 

 $

         0.63

 

 

 $

           1.86

 

 

 $

            1.36

 

               
Average Shares Outstanding:              
Basic  

 

       35,722

 

 

 

        35,606

 

 

 

          35,589

 

 

 

        35,582

 

 

        35,560

 

 

 

          35,686

 

 

 

           35,768

 

Diluted  

 

       35,800

 

 

 

        35,719

 

 

 

          35,790

 

 

 

        35,704

 

 

        35,682

 

 

 

          35,750

 

 

 

           35,880

 

Premier Financial Corp.          
 Selected Quarterly Information          
  Three Months Ended   Six Months Ended
(dollars in thousands,

except per share data)
  6/30/23   3/31/23   12/31/22   9/30/22   6/30/22   6/30/23   6/30/22
Summary of Operations              
Tax-equivalent interest income (1)  

$

       90,226

 

 

 $

         84,260

 

 

 $

         80,889

 

 

 $

         73,301

 

 

 $

         63,283

 

 

 $

     174,485

 

 

 $

       124,336

 

Interest expense  

 

           36,167

 

 

 

            27,869

 

 

 

            18,106

 

 

 

              9,792

 

 

 

              3,962

 

 

 

           64,036

 

 

 

              6,893

 

Tax-equivalent net interest income (1)  

 

           54,059

 

 

 

            56,391

 

 

 

            62,783

 

 

 

            63,509

 

 

 

            59,321

 

 

 

        110,449

 

 

 

          117,443

 

Provision expense for credit losses  

 

                540

 

 

 

              3,706

 

 

 

              2,774

 

 

 

              4,012

 

 

 

              6,566

 

 

 

             4,246

 

 

 

              7,501

 

Non-interest income (ex securities gains/losses)  

 

           53,282

 

 

 

            13,873

 

 

 

            13,018

 

 

 

            16,661

 

 

 

            15,526

 

 

 

           67,155

 

 

 

            33,032

 

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

 

           16,986

 

 

 

            13,873

 

 

 

            13,018

 

 

 

            16,661

 

 

 

            15,526

 

 

 

           30,859

 

 

 

            33,032

 

Non-interest expense  

 

           44,495

 

 

 

            42,791

 

 

 

            43,028

 

 

 

            41,099

 

 

 

            39,089

 

 

 

           87,286

 

 

 

            80,384

 

Core non-interest expense (2)  

 

           40,843

 

 

 

            42,791

 

 

 

            43,028

 

 

 

            41,099

 

 

 

            39,089

 

   
Income tax expense  

 

           13,912

 

 

 

              4,103

 

 

 

              5,770

 

 

 

              6,710

 

 

 

              5,446

 

 

 

           18,015

 

 

 

            11,616

 

Net income  

 

           48,391

 

 

 

            18,149

 

 

 

            25,275

 

 

 

            28,195

 

 

 

            22,360

 

 

 

           66,540

 

 

 

            48,717

 

Core net income (2)  

 

           24,230

 

 

 

            18,149

 

 

 

            25,275

 

 

 

            28,195

 

 

 

            22,360

 

 

 

           42,379

 

 

 

            48,717

 

Tax equivalent adjustment (1)  

 

                   67

 

 

 

                 104

 

 

 

                 164

 

 

 

                 197

 

 

 

                 225

 

 

 

                170

 

 

 

                 453

 

At Period End              
Total assets  

 $

  8,616,211

 

 

 $

    8,562,316

 

 

 $

    8,455,342

 

 

 $

    8,236,140

 

 

 $

    8,010,624

 

   
Goodwill and intangibles  

 

        309,900

 

 

 

          335,792

 

 

 

          337,062

 

 

 

          337,920

 

 

 

          339,259

 

   
Tangible assets (3)  

 

     8,306,311

 

 

 

       8,226,524

 

 

 

       8,118,280

 

 

 

       7,898,220

 

 

 

       7,671,365

 

   
Earning assets  

 

     7,818,825

 

 

 

       7,751,130

 

 

 

       7,620,056

 

 

 

       7,411,403

 

 

 

       7,218,905

 

   
Loans  

 

     6,708,568

 

 

 

       6,575,829

 

 

 

       6,460,620

 

 

 

       6,207,708

 

 

 

       5,890,823

 

   
Allowance for loan losses  

 

           75,921

 

 

 

            74,273

 

 

 

            72,816

 

 

 

            70,626

 

 

 

            67,074

 

   
Deposits  

 

     6,994,432

 

 

 

       6,774,031

 

 

 

       6,906,719

 

 

 

       6,732,505

 

 

 

       6,516,344

 

   
Stockholders’ equity  

 

        936,971

 

 

 

          914,450

 

 

 

          887,721

 

 

 

          864,960

 

 

 

          901,147

 

   
Stockholders’ equity / assets  

 

10.87

%

 

 

10.68

%

 

 

10.50

%

 

 

10.50

%

 

 

11.25

%

   
Tangible equity (3)  

 

        627,071

 

 

 

          578,658

 

 

 

          550,659

 

 

 

          527,040

 

 

 

          561,888

 

   
Tangible equity / tangible assets  

 

7.55

%

 

 

7.03

%

 

 

6.78

%

 

 

6.67

%

 

 

7.32

%

       
Average Balances               
Total assets  

 $

  8,597,786

 

 

 $

    8,433,100

 

 

 $

    8,304,462

 

 

 $

    8,161,389

 

 

 $

    7,742,550

 

 

 $

  8,515,898

 

 

 $

    7,626,888

 

Earning assets  

 

7,951,520

 

 

 

7,783,850

 

 

 

7,653,648

 

 

 

7,477,795

 

 

 

7,051,661

 

 

 

7,871,629

 

 

 

6,904,082

 

Loans  

 

6,714,240

 

 

 

6,535,080

 

 

 

6,359,564

 

 

 

6,120,324

 

 

 

5,667,853

 

 

 

6,625,155

 

 

 

5,526,127

 

Deposits and interest-bearing liabilities  

 

7,538,674

 

 

 

7,385,946

 

 

 

7,278,531

 

 

 

7,116,910

 

 

 

6,706,250

 

 

 

7,462,732

 

 

 

6,561,669

 

Deposits  

 

6,799,605

 

 

 

6,833,521

 

 

 

6,773,382

 

 

 

6,654,328

 

 

 

6,385,857

 

 

 

6,816,469

 

 

 

6,350,235

 

Stockholders’ equity  

 

921,441

 

 

 

901,587

 

 

 

875,287

 

 

 

912,224

 

 

 

921,847

 

 

 

911,569

 

 

 

961,873

 

Goodwill and intangibles  

 

        334,862

 

 

 

336,418

 

 

 

337,207

 

 

 

338,583

 

 

 

339,932

 

 

 

        335,636

 

 

 

340,639

 

Tangible equity (3)  

 

        586,579

 

 

 

          565,169

 

 

 

          538,080

 

 

 

          573,641

 

 

 

          581,915

 

 

 

        575,933

 

 

 

          621,234

 

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

 $

            1.35

 

 

 $

             0.51

 

 

 $

             0.71

 

 

 $

             0.79

 

 

 $

             0.63

 

 

 $

            1.86

 

 

 $

             1.36

 

EPS - Diluted  

 

               1.35

 

 

 

                0.51

 

 

 

                0.71

 

 

 

                0.79

 

 

 

                0.63

 

 

 

               1.86

 

 

 

                1.36

 

EPS -  Core diluted (2)  

 

               0.68

 

 

 

                0.51

 

 

 

                0.71

 

 

 

                0.79

 

 

 

                0.63

 

 

 

               1.19

 

 

 

                1.36

 

Dividends Paid  

 

               0.31

 

 

 

                0.31

 

 

 

                0.30

 

 

 

                0.30

 

 

 

                0.30

 

 

 

               0.62

 

 

 

                0.60

 

Market Value:              
High  

 $

          21.01

 

 

 $

           27.80

 

 

 $

           30.51

 

 

 $

           29.36

 

 

 $

           30.13

 

 

 $

          27.99

 

 

 $

           32.52

 

Low  

 

             13.60

 

 

 

              20.39

 

 

 

              26.11

 

 

 

              24.67

 

 

 

              25.31

 

 

 

             13.60

 

 

 

              25.31

 

Close  

 

             16.02

 

 

 

              20.73

 

 

 

              26.97

 

 

 

              25.70

 

 

 

              25.35

 

 

 

             16.02

 

 

 

              30.91

 

Common Book Value  

 

             26.23

 

 

 

              25.61

 

 

 

              24.94

 

 

 

              24.32

 

 

 

              25.35

 

   
Tangible Common Book Value (3)  

 

             17.55

 

 

 

              16.21

 

 

 

              15.47

 

 

 

              14.82

 

 

 

              15.80

 

   
Shares outstanding, end of period (000s)  

 

           35,727

 

 

 

            35,701

 

 

 

            35,591

 

 

 

            35,563

 

 

 

            35,555

 

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

 

2.72

%

 

 

2.90

%

 

 

3.28

%

 

 

3.40

%

 

 

3.36

%

 

 

2.81

%

 

 

3.40

%

Return on average assets  

 

2.26

%

 

 

0.86

%

 

 

1.21

%

 

 

1.37

%

 

 

1.16

%

 

 

1.58

%

 

 

1.29

%

Core return on average assets (2)  

 

1.13

%

 

 

0.86

%

 

 

1.22

%

 

 

1.39

%

 

 

1.16

%

 

 

1.00

%

 

 

1.29

%

Return on average equity  

 

21.06

%

 

 

8.07

%

 

 

11.46

%

 

 

12.26

%

 

 

9.73

%

 

 

14.72

%

 

 

10.21

%

Core return on average equity (2)  

 

10.55

%

 

 

8.07

%

 

 

11.58

%

 

 

12.40

%

 

 

9.73

%

 

 

9.38

%

 

 

10.21

%

Return on average tangible equity  

 

33.09

%

 

 

12.88

%

 

 

18.64

%

 

 

19.50

%

 

 

15.41

%

 

 

23.30

%

 

 

15.81

%

Core return on average tangible equity (2)  

 

16.57

%

 

 

10.51

%

 

 

14.64

%

 

 

16.33

%

 

 

12.95

%

 

 

14.84

%

 

 

15.81

%

Efficiency ratio (4)  

 

41.45

%

 

 

60.90

%

 

 

56.76

%

 

 

51.26

%

 

 

52.23

%

 

 

49.15

%

 

 

53.42

%

Core efficiency ratio (2)  

 

57.49

%

 

 

60.90

%

 

 

56.76

%

 

 

51.26

%

 

 

52.23

%

 

 

59.19

%

 

 

53.42

%

Effective tax rate  

 

22.33

%

 

 

18.44

%

 

 

18.59

%

 

 

19.22

%

 

 

19.59

%

 

 

21.31

%

 

 

19.25

%

Common dividend payout ratio  

 

22.96

%

 

 

60.78

%

 

 

42.25

%

 

 

37.97

%

 

 

47.62

%

 

 

33.33

%

 

 

44.12

%

(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   Six Months Ended
  6/30/23   3/31/23   12/31/22   9/30/22   6/30/22   6/30/23   6/30/22
Average Balances              
Interest-earning assets:              
Loans receivable (1)  

 $

  6,714,240

 

 

 $

    6,535,080

 

 

 $

    6,359,564

 

 

 $

    6,120,324

 

 

 $

    5,667,853

 

 

 $

  6,625,155

 

 

 $

    5,526,127

 

Securities  

 

     1,155,451

 

 

 

       1,190,359

 

 

 

       1,236,511

 

 

 

       1,262,435

 

 

 

       1,288,636

 

 

 

     1,172,809

 

 

 

       1,269,677

 

Interest Bearing Deposits  

 

           36,730

 

 

 

            35,056

 

 

 

            29,884

 

 

 

            68,530

 

 

 

            76,401

 

 

 

           35,898

 

 

 

            92,987

 

FHLB stock  

 

           45,099

 

 

 

            30,353

 

 

 

            28,386

 

 

 

            27,414

 

 

 

            19,334

 

 

 

           37,767

 

 

 

            15,667

 

Total interest-earning assets  

 

     7,951,520

 

 

 

       7,790,848

 

 

 

       7,654,345

 

 

 

       7,478,703

 

 

 

       7,052,224

 

 

 

     7,871,629

 

 

 

       6,904,458

 

Non-interest-earning assets   

 

        646,266

 

 

 

          642,252

 

 

 

          650,117

 

 

 

          682,686

 

 

 

          690,326

 

 

 

        644,269

 

 

 

          722,430

 

Total assets  

 $

  8,597,786

 

 

 $

    8,433,100

 

 

 $

    8,304,462

 

 

 $

    8,161,389

 

 

 $

    7,742,550

 

 

 $

  8,515,898

 

 

 $

    7,626,888

 

Deposits and Interest-bearing Liabilities:              
Interest bearing deposits  

 $

  5,195,727

 

 

 $

    5,078,510

 

 

 $

    4,901,412

 

 

 $

    4,846,419

 

 

 $

    4,614,223

 

 

 $

  5,137,442

 

 

 $

    4,607,549

 

FHLB advances and other  

 

        653,923

 

 

 

          467,311

 

 

 

          419,761

 

 

 

          377,533

 

 

 

          234,945

 

 

 

        561,133

 

 

 

          126,215

 

Subordinated debentures  

 

           85,146

 

 

 

            85,114

 

 

 

            85,084

 

 

 

            85,049

 

 

 

            85,020

 

 

 

           85,130

 

 

 

            85,004

 

Notes payable  

 

                      -

 

 

 

                      -

 

 

 

                 304

 

 

 

                      -

 

 

 

                 428

 

 

 

                      -

 

 

 

                 215

 

Total interest-bearing liabilities  

 

     5,934,796

 

 

 

       5,630,935

 

 

 

       5,406,561

 

 

 

       5,309,001

 

 

 

       4,934,616

 

 

 

     5,783,705

 

 

 

       4,818,983

 

Non-interest bearing deposits  

 

     1,603,878

 

 

 

       1,755,011

 

 

 

       1,871,970

 

 

 

       1,807,909

 

 

 

       1,771,634

 

 

 

     1,679,027

 

 

 

       1,742,686

 

Total including non-interest-bearing deposits  

 

     7,538,674

 

 

 

       7,385,946

 

 

 

       7,278,531

 

 

 

       7,116,910

 

 

 

       6,706,250

 

 

 

     7,462,732

 

 

 

       6,561,669

 

Other non-interest-bearing liabilities  

 

        137,671

 

 

 

          145,567

 

 

 

          150,644

 

 

 

          132,255

 

 

 

          114,453

 

 

 

        141,597

 

 

 

          103,346

 

Total liabilities  

 

     7,676,345

 

 

 

       7,531,513

 

 

 

       7,429,175

 

 

 

       7,249,165

 

 

 

       6,820,703

 

 

 

     7,604,329

 

 

 

       6,665,015

 

Stockholders' equity  

 

        921,441

 

 

 

          901,587

 

 

 

          875,287

 

 

 

          912,224

 

 

 

          921,847

 

 

 

        911,569

 

 

 

          961,873

 

Total liabilities and stockholders' equity  

 $

  8,597,786

 

 

 $

    8,433,100

 

 

 $

    8,304,462

 

 

 $

    8,161,389

 

 

 $

    7,742,550

 

 

 $

  8,515,898

 

 

 $

    7,626,888

 

IEAs/IBLs  

 

134

%

 

 

138

%

 

 

142

%

 

 

141

%

 

 

143

%

 

 

136

%

 

 

143

%

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

 $

       81,622

 

 

 $

         76,063

 

 

 $

         72,201

 

 

 $

         65,564

 

 

 $

         56,573

 

 

 $

     157,684

 

 

 $

       111,821

 

Securities (2)  

 

             7,058

 

 

 

              7,359

 

 

 

              7,762

 

 

 

              7,006

 

 

 

              6,416

 

 

 

           14,417

 

 

 

            12,116

 

Interest Bearing Deposits  

 

                641

 

 

 

                 444

 

 

 

                 444

 

 

 

                 221

 

 

 

                 120

 

 

 

             1,085

 

 

 

                 233

 

FHLB stock  

 

                905

 

 

 

                 394

 

 

 

                 482

 

 

 

                 510

 

 

 

                 174

 

 

 

             1,299

 

 

 

                 166

 

Total interest-earning assets  

 

           90,226

 

 

 

            84,260

 

 

 

            80,889

 

 

 

            73,301

 

 

 

            63,283

 

 

 

        174,485

 

 

 

          124,336

 

Deposits and Interest-bearing Liabilities:              
Interest bearing deposits  

 $

       26,825

 

 

 $

         21,458

 

 

 $

         13,161

 

 

 $

           6,855

 

 

 $

           2,671

 

 

 $

       48,283

 

 

 $

           4,893

 

FHLB advances and other  

 

             8,217

 

 

 

              5,336

 

 

 

              3,941

 

 

 

              2,069

 

 

 

                 527

 

 

 

           13,554

 

 

 

                 540

 

Subordinated debentures  

 

             1,125

 

 

 

              1,075

 

 

 

              1,001

 

 

 

                 868

 

 

 

                 763

 

 

 

             2,199

 

 

 

              1,459

 

Notes payable  

 

                      -

 

 

 

                      -

 

 

 

                     3

 

 

 

                      -

 

 

 

                     1

 

 

 

                      -

 

 

 

                     1

 

Total interest-bearing liabilities  

 

           36,167

 

 

 

            27,869

 

 

 

            18,106

 

 

 

              9,792

 

 

 

              3,962

 

 

 

           64,036

 

 

 

              6,893

 

Non-interest bearing deposits  

 

                      -

 

 

 

                      -

 

 

 

                      -

 

 

 

                      -

 

 

 

                      -

 

 

 

                      -

 

 

 

                      -

 

Total including non-interest-bearing deposits  

 

           36,167

 

 

 

            27,869

 

 

 

            18,106

 

 

 

              9,792

 

 

 

              3,962

 

 

 

           64,036

 

 

 

              6,893

 

Net interest income  

 $

       54,059

 

 

 $

         56,391

 

 

 $

         62,783

 

 

 $

         63,509

 

 

 $

         59,321

 

 

 $

     110,449

 

 

 $

       117,443

 

Less: PPP income  

 

                   (5

)

 

 

                    (6

)

 

 

                    (6

)

 

 

                  (26

)

 

 

                (160

)

 

 

                 (11

)

 

 

             (3,801

)

Less: Acquisition marks accretion  

 

               (380

)

 

 

                (387

)

 

 

                (554

)

 

 

                (608

)

 

 

                (706

)

 

 

               (766

)

 

 

             (1,443

)

Core net interest income  

 $

       53,674

 

 

 $

         55,998

 

 

 $

         62,223

 

 

 $

         62,875

 

 

 $

         58,455

 

 

 $

     109,672

 

 

 $

       112,199

 

               
Annualized Average Rates              
Interest-earning assets:              
Loans receivable  

 

4.86

%

 

 

4.66

%

 

 

4.54

%

 

 

4.29

%

 

 

3.99

%

 

 

4.76

%

 

 

4.05

%

Securities (3)  

 

2.44

%

 

 

2.47

%

 

 

2.51

%

 

 

2.22

%

 

 

1.99

%

 

 

2.46

%

 

 

1.91

%

Interest Bearing Deposits  

 

6.98

%

 

 

5.07

%

 

 

5.94

%

 

 

1.29

%

 

 

0.63

%

 

 

6.04

%

 

 

0.50

%

FHLB stock  

 

8.03

%

 

 

5.19

%

 

 

6.79

%

 

 

7.44

%

 

 

3.60

%

 

 

6.88

%

 

 

2.12

%

Total interest-earning assets  

 

4.54

%

 

 

4.33

%

 

 

4.23

%

 

 

3.92

%

 

 

3.59

%

 

 

4.43

%

 

 

3.60

%

Deposits and Interest-bearing Liabilities:              
Interest bearing deposits  

 

2.07

%

 

 

1.69

%

 

 

1.07

%

 

 

0.57

%

 

 

0.23

%

 

 

1.88

%

 

 

0.21

%

FHLB advances and other  

 

5.03

%

 

 

4.57

%

 

 

3.76

%

 

 

2.19

%

 

 

0.90

%

 

 

4.83

%

 

 

0.86

%

Subordinated debentures  

 

5.29

%

 

 

5.05

%

 

 

4.71

%

 

 

4.08

%

 

 

3.59

%

 

 

5.17

%

 

 

3.43

%

Notes payable  

 

-

 

 

 

-

 

 

 

3.95

%

 

 

-

 

 

 

0.93

%

 

 

-

 

 

 

0.93

%

Total interest-bearing liabilities  

 

2.44

%

 

 

1.98

%

 

 

1.34

%

 

 

0.74

%

 

 

0.32

%

 

 

2.21

%

 

 

0.29

%

Non-interest bearing deposits  

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total including non-interest-bearing deposits  

 

1.92

%

 

 

1.51

%

 

 

1.00

%

 

 

0.55

%

 

 

0.24

%

 

 

1.72

%

 

 

0.21

%

Net interest spread  

 

2.10

%

 

 

2.35

%

 

 

2.89

%

 

 

3.18

%

 

 

3.27

%

 

 

2.22

%

 

 

3.31

%

Net interest margin (4)  

 

2.72

%

 

 

2.90

%

 

 

3.28

%

 

 

3.40

%

 

 

3.36

%

 

 

2.81

%

 

 

3.40

%

Core net interest margin (4)  

 

2.70

%

 

 

2.88

%

 

 

3.25

%

 

 

3.36

%

 

 

3.32

%

 

 

2.79

%

 

 

3.26

%

                             
(1) Includes average PPP loans of:  

 $

             673

 

 

 $

              965

 

 

 $

           1,160

 

 

 $

           1,889

 

 

 $

         12,966

 

 

 $

             818

 

 

 $

         22,855

 

(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 
    6/30/23   3/31/23   12/31/22   9/30/22   6/30/22
Ending Balances          
Non-interest-bearing demand deposits   

 $

            1,573,837

 

 

 $

         1,649,726

 

 

 $

         1,869,509

 

 

 $

         1,826,511

 

 

 $

         1,786,516

 

Savings deposits  

 

                  748,392

 

 

 

               775,186

 

 

 

               797,376

 

 

 

               817,853

 

 

 

               830,048

 

Interest-bearing demand deposits  

 

                  594,325

 

 

 

               646,329

 

 

 

               653,960

 

 

 

               665,974

 

 

 

               662,337

 

Money market account deposits  

 

               1,282,721

 

 

 

            1,342,451

 

 

 

            1,493,729

 

 

 

            1,463,600

 

 

 

            1,511,990

 

Time deposits  

 

                  904,717

 

 

 

               856,720

 

 

 

               768,678

 

 

 

               630,077

 

 

 

               587,918

 

Public funds, ICS and CDARS deposits  

 

               1,477,203

 

 

 

            1,348,750

 

 

 

            1,179,759

 

 

 

            1,258,610

 

 

 

            1,137,536

 

Brokered deposits  

 

                  413,237

 

 

 

               154,869

 

 

 

               143,708

 

 

 

                 69,881

 

 

 

                          -

 

Total deposits  

 $

            6,994,432

 

 

 $

         6,774,031

 

 

 $

         6,906,719

 

 

 $

         6,732,505

 

 

 $

         6,516,344

 

           
Average Balances          
Non-interest-bearing demand deposits   

 $

            1,603,878

 

 

 $

         1,755,011

 

 

 $

         1,871,970

 

 

 $

         1,807,909

 

 

 $

         1,771,634

 

Savings deposits  

 

                  762,074

 

 

 

               782,215

 

 

 

               806,653

 

 

 

               825,673

 

 

 

               833,323

 

Interest-bearing demand deposits  

 

                  603,572

 

 

 

               637,423

 

 

 

               651,685

 

 

 

               681,247

 

 

 

               681,798

 

Money market account deposits  

 

               1,311,177

 

 

 

            1,430,905

 

 

 

            1,418,549

 

 

 

            1,493,019

 

 

 

            1,498,218

 

Time deposits  

 

                  872,991

 

 

 

               825,652

 

 

 

               685,453

 

 

 

               610,708

 

 

 

               597,613

 

Public funds, ICS and CDARS deposits  

 

               1,399,749

 

 

 

            1,232,230

 

 

 

            1,235,772

 

 

 

            1,204,968

 

 

 

            1,003,271

 

Brokered deposits  

 

                  246,164

 

 

 

               170,085

 

 

 

               103,300

 

 

 

                 30,804

 

 

 

                          -

 

Total deposits  

 $

            6,799,605

 

 

 $

         6,833,521

 

 

 $

         6,773,382

 

 

 $

         6,654,328

 

 

 $

         6,385,857

 

           
Average Rates          
Non-interest-bearing demand deposits   

 

0.00

%

 

 

0.00

%

 

 

0.00

%

 

 

0.00

%

 

 

0.00

%

Savings deposits  

 

0.02

%

 

 

0.02

%

 

 

0.02

%

 

 

0.02

%

 

 

0.02

%

Interest-bearing demand deposits  

 

0.10

%

 

 

0.07

%

 

 

0.07

%

 

 

0.07

%

 

 

0.05

%

Money market account deposits  

 

1.73

%

 

 

1.54

%

 

 

0.81

%

 

 

0.40

%

 

 

0.18

%

Time deposits  

 

2.27

%

 

 

1.83

%

 

 

1.05

%

 

 

0.58

%

 

 

0.45

%

Public funds, ICS and CDARS deposits  

 

3.71

%

 

 

3.32

%

 

 

2.41

%

 

 

1.38

%

 

 

0.48

%

Brokered deposits  

 

4.92

%

 

 

4.19

%

 

 

3.32

%

 

 

2.37

%

 

 

-

 

Total deposits  

 

1.58

%

 

 

1.26

%

 

 

0.78

%

 

 

0.41

%

 

 

0.17

%

           
Other Deposits Data          
Loans/Deposits Ratio  

 

95.9

%

 

 

97.1

%

 

 

93.5

%

 

 

92.2

%

 

 

90.4

%

Uninsured deposits %  

 

31.5

%

 

 

32.3

%

 

 

35.3

%

 

 

35.5

%

 

 

34.2

%

Adjusted uninsured deposits % (1)  

 

17.3

%

 

 

19.6

%

 

 

22.2

%

 

 

22.2

%

 

 

22.0

%

Top 20 depositors %  

 

12.4

%

 

 

12.1

%

 

 

5.4

%

 

 

11.3

%

 

 

10.0

%

Public funds %  

 

17.5

%

 

 

16.5

%

 

 

14.8

%

 

 

15.9

%

 

 

14.1

%

Average account size (excluding brokered)  

 $

                      26.7

 

 

 $

                  27.0

 

 

 $

                  27.8

 

 

 $

                  27.5

 

 

 $

                  26.9

 

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

 $

                             -

 

 

 $

                       -

 

 

 $

                       -

 

 

 $

                       -

 

 

 $

                       -

 

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

 

                  961,123

 

 

 

               998,128

 

 

 

            1,040,081

 

 

 

            1,063,713

 

 

 

            1,140,466

 

Equity investment at fair value (3)  

 

                       6,458

 

 

 

                   6,387

 

 

 

                   7,832

 

 

 

                 15,336

 

 

 

                 13,293

 

Total securities at fair value  

 $

               967,581

 

 

 $

         1,004,515

 

 

 $

         1,047,913

 

 

 $

         1,079,049

 

 

 $

         1,153,759

 

Cash+Securities/Assets  

 

12.6

%

 

 

13.6

%

 

 

13.9

%

 

 

14.4

%

 

 

16.1

%

Projected AFS cash flow in next 12 months  

 $

                 64,687

 

 

 $

              73,184

 

 

 $

              73,319

 

 

 $

              76,119

 

 

 $

              74,558

 

AFS average life (years)  

 

                            6.5

 

 

 

                       6.4

 

 

 

                       6.5

 

 

 

                       6.6

 

 

 

                       6.8

 

           
Liquidity Sources          
Cash and cash equivalents  

 $

               121,727

 

 

 $

            157,027

 

 

 $

            128,160

 

 

 $

            104,992

 

 

 $

            134,394

 

Unpledged securities at fair value  

 

                  298,471

 

 

 

               211,468

 

 

 

               288,134

 

 

 

               342,979

 

 

 

               572,892

 

FHLB borrowing capacity  

 

               1,542,459

 

 

 

            1,358,650

 

 

 

            1,528,978

 

 

 

            1,217,516

 

 

 

            1,044,477

 

Brokered deposits (Company policy limit of 10%)  

 

                  288,719

 

 

 

               524,889

 

 

 

               549,370

 

 

 

               605,552

 

 

 

               654,380

 

Bank and parent lines of credit  

 

                     70,000

 

 

 

                 70,000

 

 

 

                 70,000

 

 

 

                 70,000

 

 

 

                 45,000

 

Federal Reserve - Discount Window and BTFP (4)  

 

                  491,141

 

 

 

               129,918

 

 

 

                 44,471

 

 

 

                          -

 

 

 

                          -

 

Total  

 $

            2,812,517

 

 

 $

         2,451,952

 

 

 $

         2,609,113

 

 

 $

         2,341,039

 

 

 $

         2,451,143

 

Total liquidity to adjusted uninsured deposits ratio  

 

230.5

%

 

 

183.2

%

 

 

168.9

%

 

 

155.4

%

 

 

169.0

%

                     
(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)          
    6/30/23   3/31/23   12/31/22   9/30/22   6/30/22
Loan Portfolio Composition          
Residential real estate  

 $

      1,711,632

 

 

 $

         1,624,331

 

 

 $

         1,535,574

 

 

 $

         1,478,360

 

 

 $

         1,382,202

 

Residential real estate construction  

 

             111,708

 

 

 

               141,209

 

 

 

               176,737

 

 

 

               119,204

 

 

 

                 85,256

 

Total residential loans  

 

         1,823,340

 

 

 

            1,765,540

 

 

 

            1,712,311

 

 

 

            1,597,564

 

 

 

            1,467,458

 

           
Commercial real estate  

 

         2,848,410

 

 

 

            2,813,441

 

 

 

            2,762,311

 

 

 

            2,674,078

 

 

 

            2,655,730

 

Commercial construction  

 

             472,328

 

 

 

               440,510

 

 

 

               428,743

 

 

 

               398,044

 

 

 

               319,590

 

Commercial excluding PPP  

 

         1,068,795

 

 

 

            1,060,351

 

 

 

            1,054,037

 

 

 

            1,041,423

 

 

 

               987,242

 

Core commercial loans (1)  

 

         4,389,533

 

 

 

            4,314,302

 

 

 

            4,245,091

 

 

 

            4,113,545

 

 

 

            3,962,562

 

           
Consumer direct/indirect  

 

             210,390

 

 

 

               212,299

 

 

 

               213,405

 

 

 

               212,790

 

 

 

               180,539

 

Home equity and improvement lines  

 

             272,792

 

 

 

               271,676

 

 

 

               277,613

 

 

 

               272,367

 

 

 

               266,144

 

Total consumer loans  

 

             483,182

 

 

 

               483,975

 

 

 

               491,018

 

 

 

               485,157

 

 

 

               446,683

 

           
Deferred loan origination fees  

 

               11,936

 

 

 

                 11,221

 

 

 

                 11,057

 

 

 

                 10,261

 

 

 

                   9,559

 

Core loans (1)  

 

         6,707,991

 

 

 

            6,575,038

 

 

 

            6,459,477

 

 

 

            6,206,527

 

 

 

            5,886,262

 

PPP loans  

 

                     577

 

 

 

                      791

 

 

 

                   1,143

 

 

 

                   1,181

 

 

 

                   4,561

 

Total loans  

 $

      6,708,568

 

 

 $

         6,575,829

 

 

 $

         6,460,620

 

 

 $

         6,207,708

 

 

 $

         5,890,823

 

           
Loans held for sale  

 $

         128,079

 

 

 $

            119,631

 

 

 $

            115,251

 

 

 $

            129,142

 

 

 $

            145,092

 

Core residential loans (1)  

 

         1,951,419

 

 

 

            1,885,171

 

 

 

            1,827,562

 

 

 

            1,726,706

 

 

 

            1,612,550

 

Total loans including loans held for sale but excluding PPP  

 

         6,836,070

 

 

 

            6,694,669

 

 

 

            6,574,728

 

 

 

            6,335,669

 

 

 

            6,031,354

 

           
Undisbursed construction loan funds - residential  

 $

         102,198

 

 

 $

            157,934

 

 

 $

            209,306

 

 

 $

            231,598

 

 

 $

            239,748

 

Undisbursed construction loan funds - commercial  

 

             353,455

 

 

 

               446,294

 

 

 

               463,469

 

 

 

               493,199

 

 

 

               449,101

 

Undisbursed construction loan funds - total  

 

             455,653

 

 

 

               604,228

 

 

 

               672,775

 

 

 

               724,797

 

 

 

               688,849

 

Total construction loans including undisbursed funds  

 $

      1,039,689

 

 

 $

         1,185,947

 

 

 $

         1,278,255

 

 

 $

         1,242,045

 

 

 $

         1,093,695

 

Gross loans (2)  

 $

      7,152,285

 

 

 $

         7,168,836

 

 

 $

         7,122,338

 

 

 $

         6,922,244

 

 

 $

         6,570,113

 

           
Fixed rate loans %  

 

49.8

%

 

 

49.5

%

 

 

48.8

%

 

 

48.7

%

 

 

47.4

%

Floating rate loans %  

 

15.9

%

 

 

13.4

%

 

 

14.3

%

 

 

16.0

%

 

 

18.3

%

Adjustable rate loans repricing within 1 year %  

 

1.5

%

 

 

2.0

%

 

 

2.6

%

 

 

0.8

%

 

 

2.5

%

Adjustable rate loans repricing over 1 year %  

 

32.8

%

 

 

35.1

%

 

 

34.3

%

 

 

34.5

%

 

 

31.8

%

           
Commercial Real Estate Loans Composition          
Non owner occupied excluding office  

 $

      1,012,400

 

 

 $

            947,442

 

 

 $

            934,760

 

 

 $

            905,512

 

 

 $

            899,129

 

Non owner occupied office  

 

             225,046

 

 

 

               220,668

 

 

 

               222,300

 

 

 

               203,565

 

 

 

               210,164

 

Owner occupied excluding office  

 

             603,650

 

 

 

               609,203

 

 

 

               578,514

 

 

 

               570,662

 

 

 

               556,482

 

Owner occupied office  

 

             107,240

 

 

 

               109,014

 

 

 

               108,087

 

 

 

               105,224

 

 

 

               104,968

 

Multifamily  

 

             633,909

 

 

 

               661,996

 

 

 

               660,823

 

 

 

               637,701

 

 

 

               634,782

 

Agriculture land  

 

             123,104

 

 

 

               122,384

 

 

 

               125,384

 

 

 

               122,416

 

 

 

               120,633

 

Other commercial real estate  

 

             143,061

 

 

 

               142,734

 

 

 

               132,443

 

 

 

               128,998

 

 

 

               129,572

 

Total commercial real estate loans  

 $

      2,848,410

 

 

 $

         2,813,441

 

 

 $

         2,762,311

 

 

 $

         2,674,078

 

 

 $

         2,655,730

 

                     
Capital Balances          
Total equity  

 $

         936,971

 

 

 $

            914,450

 

 

 $

            887,721

 

 

 $

            864,960

 

 

 $

            901,147

 

Less: Regulatory goodwill and intangibles  

 

             304,818

 

 

 

               330,711

 

 

 

               331,981

 

 

 

               332,839

 

 

 

               334,177

 

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

 

           (168,721

)

 

 

             (153,709

)

 

 

             (173,460

)

 

 

             (181,231

)

 

 

             (126,754

)

Common equity tier 1 capital ("CET1")  

 

             800,874

 

 

 

               737,448

 

 

 

               729,200

 

 

 

               713,352

 

 

 

               693,724

 

Add: Tier 1 subordinated debt  

 

               35,000

 

 

 

                 35,000

 

 

 

                 35,000

 

 

 

                 35,000

 

 

 

                 35,000

 

Tier 1 capital  

 

             835,874

 

 

 

               772,448

 

 

 

               764,200

 

 

 

               748,352

 

 

 

               728,724

 

Add: Regulatory allowances  

 

               80,812

 

 

 

                 80,003

 

 

 

                 78,780

 

 

 

                 76,530

 

 

 

                 72,648

 

Add: Tier 2 subordinated debt  

 

               50,000

 

 

 

                 50,000

 

 

 

                 50,000

 

 

 

                 50,000

 

 

 

                 50,000

 

Total risk-based capital  

 $

         966,686

 

 

 $

            902,451

 

 

 $

            892,980

 

 

 $

            874,882

 

 

 $

            851,372

 

           
Total risk-weighted assets  

 $

      7,409,304

 

 

 $

         7,370,704

 

 

 $

         7,355,979

 

 

 $

         7,385,877

 

 

 $

         7,095,366

 

           
Capital Ratios          
CET1 Ratio  

 

10.81

%

 

 

10.01

%

 

 

9.91

%

 

 

9.66

%

 

 

9.78

%

CET1 Ratio including AOCI  

 

8.53

%

 

 

7.92

%

 

 

7.55

%

 

 

7.20

%

 

 

7.99

%

Tier 1 Capital Ratio  

 

11.28

%

 

 

10.48

%

 

 

10.39

%

 

 

10.13

%

 

 

10.27

%

Tier 1 Capital Ratio including AOCI  

 

9.00

%

 

 

8.39

%

 

 

8.03

%

 

 

7.68

%

 

 

8.48

%

Total Capital Ratio  

 

13.05

%

 

 

12.24

%

 

 

12.14

%

 

 

11.85

%

 

 

12.00

%

Total Capital Ratio including AOCI  

 

10.77

%

 

 

10.16

%

 

 

9.78

%

 

 

9.39

%

 

 

10.21

%

                     
 (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
             
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

%

             
March 31, 2023                        
One to four family residential real estate  

 $

            1,624,331

 

 $

            1,611,658

 

 $

                   4,514

 

0.28

%

 

 $

                 8,159

 

0.50

%

Construction   

 

               1,185,947

 

 

               1,185,803

 

 

                         144

 

0.01

%

 

 

                           -

 

0.00

%

Commercial real estate  

 

               2,813,441

 

 

               2,799,007

 

 

                           88

 

0.00

%

 

 

                  14,346

 

0.51

%

Commercial  

 

               1,061,142

 

 

               1,053,681

 

 

                         471

 

0.04

%

 

 

                    6,990

 

0.66

%

Home equity and improvement  

 

                  271,676

 

 

                  266,931

 

 

                      2,404

 

0.88

%

 

 

                    2,341

 

0.86

%

Consumer finance  

 

                  212,299

 

 

                  206,247

 

 

                      3,511

 

1.65

%

 

 

                    2,541

 

1.20

%

Gross loans  

 $

            7,168,836

 

 $

            7,123,327

 

 $

                 11,132

 

0.16

%

 

 $

               34,377

 

0.48

%

             
June 30, 2022