Fourth Quarter 2022
Highlights
- Loan growth of $239.0 million (up 15.1% annualized)
including $131.5 million for commercial loans excluding PPP (up
12.8% annualized)
- Customer deposits growth of $100.4 million (up 6.0%
annualized) including $43.0 million of non-interest-bearing (up
9.4% annualized)
- Net interest income (tax equivalent) of $62.8 million or
$62.2 million excluding PPP and acquisition marks accretion, up
9.3% and 17.0%, respectively, from 2021 fourth quarter
- Completed an insurance agency acquisition
- Declared dividend of $0.31 per share, up 3.3% from prior
year comparable period
Full Year 2022
Highlights
- Loan growth of $1.1 billion (up 20.5%) including $694.7
million for commercial loans excluding PPP (up 19.6%)
- Customer deposits growth of $481.0 million (up 7.7%)
including $144.7 million of non-interest-bearing (up 8.4%)
- Net interest income (tax equivalent) of $243.7 million or
$237.3 million excluding PPP and acquisition marks accretion, up
6.7% and 14.1%, respectively, from 2021
- Asset quality improved with non-performing loans down 30%
and classified loans down 37% from 2021
Premier Financial Corp. (Nasdaq: PFC) (“Premier” or the
“Company”) announced today 2022 fourth quarter and full year
results. Net income for the fourth quarter of 2022 was $25.3
million, or $0.71 per diluted common share, compared to $25.3
million, or $0.69 per diluted common share, for the fourth quarter
of 2021. Net income for 2022 was $102.2 million, or $2.85 per
diluted common share, compared to $126.1 million, or $3.39 per
diluted common share, for 2021.
“We continued to have stronger than anticipated loan and deposit
growth as we closed the fourth quarter,” said Gary Small, President
and CEO of Premier. “Full year loan growth exceeded 20% with core
customer deposits up 7.7%. For the full year, tax equivalent net
interest income grew $29 million, or 14% on a core basis excluding
PPP and purchase accounting marks. The growth reflects the strength
of our client base and the markets in which we operate. We did
experience a step up in deposit betas during the quarter although
this is in line with our overall historical range for the deposit
book of business. As noted last quarter, we are utilizing non-core
funding enabling us to thoughtfully manage core deposit costs
across the organization. Diligent funding cost management will be a
key for the organization and the industry in 2023.”
Quarterly results
Strong loan and deposit growth
Gross loans including those held for sale increased $239.0
million (up 15.1% annualized) on a linked quarter basis. Loan
growth occurred in each category, including $131.5 million from
commercial loans excluding PPP (up 12.8% annualized), $100.9
million from residential loans including held for sale (up 23.4%
annualized) and $5.9 million from consumer/home equity loans (up
4.8% annualized). PPP loans decreased $38 thousand and were only
$1.1 million as of December 31, 2022.
Customer deposits increased $100.4 million (up 6.0% annualized)
on a linked quarter basis. Deposit growth occurred in each customer
category, including $43.0 million from non-interest bearing
deposits (up 9.4% annualized) and $57.4 million from
interest-bearing deposits (up 4.7% annualized). Brokered deposits
also added $73.8 million.
Net interest income and margin
Net interest income of $62.8 million on a tax equivalent (“TE”)
basis in the fourth quarter of 2022 was down 1.1% from $63.5
million in the third quarter of 2022 but up 9.3% from $57.5 million
in the fourth quarter of 2021. TE net interest margin of 3.28% in
the fourth quarter of 2022 decreased 12 basis points from 3.40% in
the third quarter of 2022 and 13 basis points from 3.41% in the
fourth quarter of 2021. Results for all periods include the impact
of PPP as well as acquisition marks and related accretion. Fourth
quarter 2022 includes $329 thousand of accretion in interest
income, $225 thousand of accretion in interest expense and $6
thousand of interest income on average balances of $1.2 million for
PPP. Excluding the impact of acquisition marks accretion and PPP
loans, core net interest income was $62.2 million, down 1.0% from
$62.9 million in the third quarter of 2022 but up 17.0% from $53.2
million in the fourth quarter of 2021. Additionally, core net
interest margin was 3.25% for the fourth quarter of 2022, down 11
basis points from 3.36% for the third quarter of 2022 but up 4
basis points from 3.21% for the fourth quarter of 2021. These
results are positively impacted by the combination of loan growth
excluding PPP as discussed above and higher loan yields excluding
PPP and acquisition marks accretion, which were 4.51% for the
fourth quarter of 2022 compared to 4.24% in the third quarter of
2022 and 3.86% in the fourth quarter of 2021. The fourth quarter
increase of 27 basis points represents a beta of 18% compared to
the change in the quarterly average effective Federal Funds rate
that increased 147 basis points to 3.65% for the fourth quarter of
2022 as reported by the Federal Reserve Economic Data. The cost of
funds in the fourth quarter of 2022 was 1.00%, up 45 basis points
from the third quarter of 2022 and up 79 basis points from the
fourth quarter of 2021. 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. The linked quarter increase is
due to higher rates on FHLB borrowings, utilization of brokered
deposits and higher average deposit costs. Excluding brokered
deposits and acquisition marks accretion, average deposit costs
increased 33 basis points to 0.72% for the fourth quarter of 2022,
which represents a beta of 22% compared to the change in the
quarterly average effective Federal Funds rate.
Non-interest income
Service fees in the fourth quarter of 2022 were $6.6 million, a
1.3% increase from $6.5 million in the third quarter of 2022 and a
4.4% increase from $6.4 million in the fourth quarter of 2021,
primarily due to fluctuations in consumer activity for interchange
and ATM/NSF charges. However, total non-interest income in the
fourth quarter of 2022 of $14.2 million was down 14.8% from $16.7
million in the third quarter of 2022 and down 19.1% from $17.6
million in the fourth quarter of 2021 primarily due to fluctuations
in mortgage banking and gains/losses on securities. Mortgage
banking income decreased by $4.3 million on a linked quarter basis
due to a $4.6 million decrease in gains, primarily from higher
hedge costs, partially offset by a $0.3 million higher MSR
valuation gain. Mortgage banking income for the fourth quarter
decreased $3.4 million year-over-year due to a $4.1 million
decrease in gains primarily from compressed margins and lower
saleable mix offset partly by a $0.5 million benefit from lower MSR
amortization and a $0.2 million higher MSR valuation gain.
Securities gains were $1.2 million in the fourth quarter of 2022
primarily from $1.3 million of gains on the sale of $8.7 million of
equity securities, which were partially offset by $0.1 million of
decreased valuations on remaining equity securities. This compares
to $43 thousand of losses from decreased valuations on equity
securities in the third quarter of 2022 and $1.1 million of gains
from increased valuations on equity securities in the fourth
quarter of 2021. An additional $9.6 million of available-for-sale
securities were sold for a gain of $1 thousand during the fourth
quarter of 2022. The combined $18.3 million of proceeds from
security sales will benefit net interest income beginning in the
first quarter of 2023. BOLI income of $1.0 million in the fourth
quarter 2022 decreased from $2.1 million in the fourth quarter 2021
due to $1.1 million of claim gains in 2021 compared to none in
2022.
“We are pleased to note we originated over $1 billion in
residential mortgages for the year in a very difficult
environment,” Small added. “We continue to adjust our product
offering to optimize the saleable mix and improve our gain on sale
margins and remain very committed to the business over the
long-term.”
Non-interest expenses
Non-interest expenses in the fourth quarter of 2022 were $43.0
million, a 4.7% increase from $41.1 million in the third quarter of
2022 and a 3.7% increase from $41.5 million in the fourth quarter
of 2021. Compensation and benefits were $25.0 million in the fourth
quarter of 2022, compared to $24.5 million in the third quarter of
2022 and $24.2 million in the fourth quarter of 2021. The linked
quarter increase was primarily due to lower deferred costs related
to decreased loan production. The year-over-year increase was
primarily due to costs related to higher staffing levels for our
growth initiatives and higher base compensation including mid-year
adjustments. Data processing and FDIC premiums increased $0.8
million and $0.3 million on a linked quarter basis, respectively,
and $0.4 million and $0.5 million on a year-over-year basis,
respectively, due to our growth initiatives. All other non-interest
expenses increased a net $0.4 million on a linked quarter basis and
decreased a net $0.1 million on a year-over-year basis. The
efficiency ratio for the fourth quarter 2022 of 56.76% worsened
from 51.26% in the third quarter of 2022 and from 56.14% in the
fourth quarter of 2021, primarily due to higher expenses.
Credit quality
Non-performing assets totaled $34.4 million, or 0.4% of assets,
at December 31, 2022, an increase from $33.6 million at September
30, 2022, but a decrease from $48.2 million at December 31, 2021.
Loan delinquencies increased to $18.3 million, or 0.3% of loans, at
December 31, 2022, from $13.2 million at September 30, 2022, and
from $12.3 million at December 31, 2021. Classified loans totaled
$43.8 million, or 0.6% of loans, as of December 31, 2022, a
decrease from $45.0 million at September 30, 2022, and from $69.5
million at December 31, 2021.
The 2022 fourth quarter results include net loan charge-offs of
$830 thousand and a total provision expense of $2.8 million,
compared with net loan charge-offs of $9.6 million and a total
provision expense of $2.0 million for the same period in 2021. The
current year provision is primarily due to higher non-PPP loan
growth in 2022 compared to 2021. The allowance for credit losses as
a percentage of total loans was 1.13% at December 31, 2022,
compared with 1.14% at September 30, 2022, and 1.26% at December
31, 2021. The allowance for credit losses as a percentage of total
loans excluding PPP and including unaccreted acquisition marks was
1.17% at December 31, 2022, compared with 1.19% at September 30,
2022, and 1.37% at December 31, 2021. The continued economic
improvement following the 2020 pandemic-related downturn has
resulted in a year-over-year decrease in the allowance
percentages.
“We are pleased with our improved asset quality this year,
including a 28.5% decrease in non-performing assets to 0.41% of
total assets and a 37.0% decrease in classified loans to 0.61% of
loans,” said Paul Nungester, CFO of Premier. “Net charge-offs for
2022 were only 0.015% of average loans excluding $5.3 million for
the student loan servicer credit that was reserved for in
2021.”
Annual results
For the year ended December 31, 2022, net income totaled $102.2
million, or $2.85 per diluted common share, compared to $126.1
million, or $3.39 per diluted common share for the year ended
December 31, 2021. The year-over-year comparison is primarily
impacted by fluctuations in the provision for credit losses, which
was an expense of $14.3 million or $0.32 per diluted share in 2022
compared to a benefit of $7.1 million or $0.15 per share in 2021.
The current year’s provision expense is primarily due to loan
growth, whereas the prior year’s provision benefit was primarily
due to the improving economic environment following the COVID-19
pandemic-induced economic recession and reserve increase in
2020.
TE net interest income of $243.7 million in 2022 was up 6.7%
from $228.4 million in 2021. TE net interest margin of 3.37% in
2022 decreased by two basis points from 3.39% in 2021. Results for
each period include the impact of PPP as well as acquisition marks
and related accretion. 2022 includes $1.7 million of accretion in
interest income, $0.9 million of accretion in interest expense and
$3.8 million of interest income on average balances of $12.1
million for PPP. Excluding the impact of acquisition marks
accretion and PPP loans, core net interest income was $237.3
million, up 14.1% from $208.0 million in 2021. Additionally, core
net interest margin was 3.28% for 2022, up four basis points from
3.24% for 2021. These improved results are primarily due to loan
growth excluding PPP partially offset by lower PPP income and
accretion from acquisition marks. Cost of funds in 2022 was 0.51%,
up 26 basis points from 2021. The year-over-year increase is
primarily due to an increased utilization of higher cost FHLB
borrowings in support of loan growth in excess of deposit growth
and higher average deposit costs.
Service fees in 2022 were $25.9 million, a 7.0% increase from
$24.2 million in 2021, primarily due to increased consumer activity
for interchange and ATM/NSF charges. However, total non-interest
income in 2022 of $62.2 million was down 21.6% from $79.3 million
in 2021 due to fluctuations in mortgage banking, gains/losses on
securities, BOLI and other income. Mortgage banking income
decreased $12.1 million from 2021 due to a $10.7 million decrease
in gains primarily from compressed margins and lower saleable mix
and a $3.8 million decrease from lower MSR valuation gains,
partially offset by a $2.5 million benefit from lower MSR
amortization. Securities losses were $0.6 million in 2022 primarily
from $1.3 million of gains on the sale of $8.7 million of equity
securities that partially offset $1.9 million of decreased
valuations on equity securities compared to $4.2 million of net
gains in 2021 comprised of $2.2 million from available-for-sale
security sales gains and $2.0 million of gains from increased
valuations on equity securities. BOLI income for 2022 decreased
$1.2 million from 2021, primarily due to $1.1 million of claim
gains in 2021. Other income for 2022 decreased $1.1 million from
2021, primarily due to a $1.3 million non-recurring settlement
payment in 2021.
Non-interest expenses in 2022 were $164.5 million, a 4.6%
increase from $157.3 million in 2021, primarily due to fluctuations
in compensation and benefit expenses. Compensation and benefits
were $97.4 million in 2022 compared to $90.6 million in 2021. The
year-over-year increase was primarily due to costs related to
higher staffing levels for our growth initiatives and higher base
compensation including mid-year adjustments. All other non-interest
expenses increased a net $0.4 million on a year-over-year basis.
The efficiency ratio for 2022 was 53.68% compared to 51.83% in
2021, partly due to higher expenses but also due to lower
non-interest income discussed above.
Total assets at $8.46 billion
Total assets at December 31, 2022, were $8.46 billion, compared
to $8.24 billion at September 30, 2022, and $7.48 billion at
December 31, 2021. Gross loans receivable were $6.46 billion at
December 31, 2022, compared to $6.21 billion at September 30, 2022,
and $5.30 billion at December 31, 2021. At December 31, 2022, gross
loans receivable increased $1.16 billion from a year ago, despite a
$57.8 million decrease in PPP loans. Excluding PPP, loans grew
$1.22 billion organically, or 23.3% from a year ago. Commercial
loans excluding PPP increased by $694.7 million from December 31,
2021, to 2022, or 19.6%. Securities at December 31, 2022, were
$1.05 billion, compared to $1.08 billion at September 30, 2022, and
$1.22 billion at December 31, 2021. Also, at December 31, 2022,
goodwill and other intangible assets totaled $337.1 million
compared to $337.9 million at September 30, 2022, and $342.1
million at December 31, 2021, with the decreases attributable to
intangibles amortization.
Total non-brokered deposits at December 31, 2022, were $6.76
billion, compared with $6.66 billion at September 30, 2022, and
$6.28 billion at December 31, 2021. At December 31, 2022, customer
deposits grew $100.4 million organically, or 6.0% annualized from
the prior quarter and $481.0 million or 7.7% from December 31,
2021. Brokered deposits were $143.7 million at December 31, 2022,
compared to $69.9 million at September 30, 2022 and none at
December 31, 2021.
Total stockholders’ equity was $0.89 billion at December 31,
2022, compared to $0.86 billion at September 30, 2022, and $1.02
billion at December 31, 2021. The quarterly increase in
stockholders’ equity was primarily due to net earnings after
dividends. The year-over-year decrease was primarily due to a
decrease in accumulated other comprehensive income (“AOCI”), which
was primarily related to a $138 million negative valuation
adjustment on the available-for-sale securities portfolio. At
December 31, 2022, 1,200,025 common shares remained available for
repurchase under the Company’s existing repurchase program.
Insurance Agency Acquisition
On December 30, 2022, Premier, through its wholly owned
subsidiary First Insurance Group of the Midwest, Inc. (“FIG”),
completed the acquisition of Benham Insurance Associates, Inc.
(“BIA”), a property and casualty insurance agency. Located in
Holland, Ohio, with annual revenues of approximately $0.2 million,
BIA will be added to Premier’s FIG platform.
Dividend to be paid February 17
The Board of Directors declared a quarterly cash dividend of
$0.31 per common share payable February 17, 2023, to shareholders
of record at the close of business on February 10, 2023. The
dividend represents an annual dividend of 4.5 percent based on the
Premier common stock closing price on January 23, 2022. Premier has
approximately 35,602,000 common shares outstanding.
Conference call
Premier will host a conference call at 11:00 a.m. ET on
Wednesday, January 25, 2023, to discuss the earnings results and
business trends. The conference call may be accessed by calling
1-844-200-6205 and using access code 105871. Internet access to the
call is also available (in listen-only mode) at the following URL:
https://events.q4inc.com/attendee/815175646. 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 and First
Insurance Group. Premier Bank, headquartered in Youngstown, Ohio,
operates 74 branches and 12 loan offices in Ohio, Michigan,
Indiana, Pennsylvania and West Virginia (West Virginia office
operates as Home Savings Bank) and serves clients through a team of
wealth professionals dedicated to each community banking branch.
First Insurance Group is a full-service insurance agency with ten
offices in Ohio. For more information, visit the company’s website
at PremierFinCorp.com.
Financial Statements and Highlights Follow-
Safe Harbor Statement
This document may contain certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, and the Private Securities Litigation Reform Act of 1995.
These statements may include, but are not limited to, statements
regarding projections, forecasts, goals and plans of Premier
Financial Corp. and its management, future movements of interests,
loan or deposit production levels, future credit quality ratios,
future strength in the market area, and growth projections. These
statements do not describe historical or current facts and may be
identified by words such as “intend,” “intent,” “believe,”
“expect,” “estimate,” “target,” “plan,” “anticipate,” or similar
words or phrases, or future or conditional verbs such as “will,”
“would,” “should,” “could,” “might,” “may,” “can,” or similar
verbs. There can be no assurances that the forward-looking
statements included in this presentation will prove to be accurate.
In light of the significant uncertainties in the forward-looking
statements, the inclusion of such information should not be
regarded as a representation by Premier or any other persons, that
our objectives and plans will be achieved. Forward-looking
statements involve numerous risks and uncertainties, any one or
more of which could affect Premier’s business and financial results
in future periods and could cause actual results to differ
materially from plans and projections. These risks and
uncertainties include, but not limited to: impacts from the novel
coronavirus (COVID-19) pandemic on the economy, financial markets,
our customers, and our business and results of operation; changes
in interest rates; disruptions in the mortgage market; risks and
uncertainties inherent in general and local banking, insurance and
mortgage conditions; political uncertainty; uncertainty in U.S.
fiscal or monetary policy; uncertainty concerning or disruptions
relating to tensions surrounding the current socioeconomic
landscape; competitive factors specific to markets in which Premier
operates; increasing competition for financial products from other
financial institutions and nonbank financial technology companies;
legislative or regulatory rulemaking or actions; capital market
conditions; security breaches or unauthorized disclosure of
confidential customer or Company information; interruptions in the
effective operation of information and transaction processing
systems of Premier or Premier’s vendors and service providers;
failures or delays in integrating or adopting new technology; the
impact of the cessation of LIBOR interest rates and implementation
of a replacement rate; and other risks and uncertainties detailed
from time to time in our Securities and Exchange Commission (SEC)
filings, including our Annual Report on Form 10-K for the year
ended December 31, 2021 and any further amendments thereto. All
forward-looking statements made in this presentation are based on
information presently available to the management of Premier and
speak only as of the date on which they are made. We assume no
obligation to update any forward-looking statements, whether as a
result of new information, future developments or otherwise, except
as may be required by law. As required by U.S. GAAP, Premier will
evaluate the impact of subsequent events through the issuance date
of its December 31, 2022, consolidated financial statements as part
of its Annual Report on Form 10-K to be filed with the SEC.
Accordingly, subsequent events could occur that may cause Premier
to update its critical accounting estimates and to revise its
financial information from that which is contained in this news
release.
Non-GAAP Reporting Measures
We believe that net income, as defined by U.S. GAAP, is the most
appropriate earnings measurement. However, we consider core net
interest 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 believe that this
metric is a useful supplemental measure of operating performance
because investors and equity analysts may use this measure 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 and purchase accounting marks accretion. Our supplemental
reporting measures and similarly entitled financial measures are
widely used by investors, equity and debt analysts and ratings
agencies in the valuation, comparison, rating and investment
recommendations of companies. Our management uses these financial
measures to facilitate internal and external comparisons to
historical operating results and in making operating decisions.
Additionally, they are utilized by the Board of Directors to
evaluate management. The supplemental reporting measures do not
represent net income or cash flow provided from operating
activities as determined in accordance with U.S. GAAP and should
not be considered as alternative measures of profitability or
liquidity. Finally, the supplemental reporting measures, as defined
by us, may not be comparable to similarly entitled items reported
by other financial institutions or other companies. Please see the
exhibits for reconciliations of our supplemental reporting
measures.
Consolidated Balance Sheets (Unaudited) Premier
Financial Corp. December 31, September 30, June
30, March 31, December 31, (in thousands)
2022
2022
2022
2022
2021
Assets Cash and cash equivalents Cash and amounts due
from depositories
$
88,257
$
67,124
$
62,080
$
62,083
$
54,858
Interest-bearing deposits
39,903
37,868
72,314
91,683
106,708
128,160
104,992
134,394
153,766
161,566
Available-for-sale, carried at fair value
1,040,081
1,063,713
1,140,466
1,219,365
1,206,260
Equity securities, carried at fair value
7,832
15,336
13,293
13,454
14,097
Securities investments
1,047,913
1,079,049
1,153,759
1,232,819
1,220,357
Loans (1)
6,460,620
6,207,708
5,890,823
5,388,331
5,296,168
Allowance for credit losses - loans
(72,816
)
(70,626
)
(67,074
)
(67,195
)
(66,468
)
Loans, net
6,387,804
6,137,082
5,823,749
5,321,136
5,229,700
Loans held for sale
115,251
129,142
145,092
153,498
162,947
Mortgage servicing rights
21,171
20,832
20,693
20,715
19,538
Accrued interest receivable
28,709
26,021
22,533
21,765
20,767
Federal Home Loan Bank stock
29,185
28,262
23,991
15,332
11,585
Bank Owned Life Insurance
170,713
169,728
168,746
167,763
166,767
Office properties and equipment
55,541
53,747
54,060
54,684
55,602
Real estate and other assets held for sale
619
416
462
253
171
Goodwill
317,988
317,948
317,948
317,948
317,948
Core deposit and other intangibles
19,074
19,972
21,311
22,691
24,129
Other assets
133,214
148,949
123,886
108,510
90,325
Total Assets
$
8,455,342
$
8,236,140
$
8,010,624
$
7,590,880
$
7,481,402
Liabilities and Stockholders’ Equity
Non-interest-bearing deposits
$
1,869,509
$
1,826,511
$
1,786,516
$
1,733,157
$
1,724,772
Interest-bearing deposits
4,893,502
4,836,113
4,729,828
4,584,078
4,557,279
Brokered deposits
143,708
69,881
-
-
-
Total deposits
6,906,719
6,732,505
6,516,344
6,317,235
6,282,051
Advances from FHLB
428,000
411,000
380,000
150,000
-
Notes payable and other interest-bearing liabilities
-
-
-
-
-
Subordinated debentures
85,103
85,071
85,039
85,008
84,976
Advance payments by borrowers
34,188
33,511
40,344
20,332
24,716
Reserve for credit losses - unfunded commitments
6,816
7,061
6,755
5,340
5,031
Other liabilities
106,795
102,032
80,995
69,669
61,132
Total Liabilities
7,567,621
7,371,180
7,109,477
6,647,584
6,457,906
Stockholders’ Equity Preferred stock
-
-
-
-
-
Common stock, net
306
306
306
306
306
Additional paid-in-capital
691,453
691,578
690,905
691,350
691,132
Accumulated other comprehensive income (loss)
(173,460
)
(181,231
)
(126,754
)
(75,497
)
(3,428
)
Retained earnings
502,909
488,305
470,779
459,087
443,517
Treasury stock, at cost
(133,487
)
(133,998
)
(134,089
)
(131,950
)
(108,031
)
Total Stockholders’ Equity
887,721
864,960
901,147
943,296
1,023,496
Total Liabilities and Stockholders’ Equity
$
8,455,342
$
8,236,140
$
8,010,624
$
7,590,880
$
7,481,402
(1) Includes PPP loans of:
$
1,143
$
1,181
$
4,561
$
18,660
$
58,906
Consolidated Statements of Income (Unaudited)
Premier Financial Corp. Three Months Ended Twelve
Months Ended (in thousands, except per share amounts)
12/31/22 9/30/22 6/30/22 3/31/22 12/31/21
12/31/22
12/31/21 Interest Income: Loans
$
72,194
$
65,559
$
56,567
$
55,241
$
55,007
$
249,561
$
223,787
Investment securities
7,605
6,814
6,197
5,479
5,369
26,095
19,369
Interest-bearing deposits
444
221
120
46
56
831
198
FHLB stock dividends
482
510
174
59
58
1,225
233
Total interest income
80,725
73,104
63,058
60,825
60,490
277,712
243,587
Interest Expense: Deposits
13,161
6,855
2,671
2,222
2,615
24,909
13,482
FHLB advances
3,941
2,069
527
13
-
6,550
23
Subordinated debentures
1,000
868
763
696
673
3,327
2,713
Notes Payable
4
-
1
-
-
5
-
Total interest expense
18,106
9,792
3,962
2,931
3,288
34,791
16,218
Net interest income
62,619
63,312
59,096
57,894
57,202
242,921
227,369
Provision (benefit) for credit losses - loans
3,020
3,706
5,151
626
2,816
12,503
(6,733
)
Provision (benefit) for credit losses - unfunded commitments
(246
)
306
1,415
309
(807
)
1,784
(319
)
Total provision (benefit) for credit losses
2,774
4,012
6,566
935
2,009
14,287
(7,052
)
Net interest income after provision
59,845
59,300
52,530
56,959
55,193
228,634
234,421
Non-interest Income: Service fees and other charges
6,632
6,545
6,676
6,000
6,351
25,853
24,168
Mortgage banking income
(299
)
3,970
1,948
4,252
3,060
9,871
21,925
Gain (loss) on sale of available for sale securities
1
-
-
-
-
1
2,218
Gain (loss) on equity securities
1,209
43
(1,161
)
(643
)
1,132
(551
)
1,954
Insurance commissions
3,576
3,488
4,334
4,639
3,379
16,228
15,780
Wealth management income
1,582
1,355
1,414
1,477
1,383
5,828
6,027
Income from Bank Owned Life Insurance
984
983
983
996
2,145
3,946
5,121
Other non-interest income
543
320
171
142
129
984
2,133
Total Non-interest Income
14,228
16,704
14,365
16,863
17,579
62,160
79,326
Non-interest Expense: Compensation and benefits
24,999
24,522
22,334
25,541
24,247
97,396
90,646
Occupancy
3,383
3,463
3,494
3,700
3,859
14,039
15,501
FDIC insurance premium
1,276
976
802
593
781
3,647
2,896
Financial institutions tax
795
1,050
1,074
1,191
526
4,110
4,079
Data processing
3,882
3,121
3,442
3,335
3,447
13,780
13,550
Amortization of intangibles
1,293
1,338
1,380
1,438
1,483
5,450
6,208
Other non-interest expense
7,400
6,629
6,563
5,497
7,145
26,089
24,444
Total Non-interest Expense
43,028
41,099
39,089
41,295
41,488
164,511
157,324
Income before income taxes
31,045
34,905
27,806
32,527
31,284
126,283
156,423
Income tax expense
5,770
6,710
5,446
6,170
5,974
24,096
30,372
Net Income
$
25,275
$
28,195
$
22,360
$
26,357
$
25,310
$
102,187
$
126,051
Earnings per common share: Basic
$
0.71
$
0.79
$
0.63
$
0.73
$
0.69
$
2.86
$
3.39
Diluted
$
0.71
$
0.79
$
0.63
$
0.73
$
0.69
$
2.85
$
3.39
Average Shares Outstanding: Basic
35,589
35,582
35,560
35,978
36,740
35,679
37,109
Diluted
35,790
35,704
35,682
36,090
36,848
35,809
37,200
Premier Financial Corp. Selected Quarterly
Information (dollars in thousands,except per share data)
4Q22
3Q22
2Q22
1Q22
4Q21
YTD 2022 YTD 2021
Summary of Operations
Tax-equivalent interest income (1)
$
80,889
$
73,301
$
63,283
$
61,054
$
60,740
$
278,526
$
244,600
Interest expense
18,106
9,792
3,962
2,931
3,288
34,791
16,218
Tax-equivalent net interest income (1)
62,783
63,509
59,321
58,123
57,452
243,735
228,382
Provision expense (benefit) for credit losses
2,774
4,012
6,566
935
2,009
14,287
(7,052
)
Investment securities gains (losses)
1,210
43
(1,161
)
(643
)
1,132
(550
)
4,172
Non-interest income (ex securities gains/losses)
13,018
16,661
15,526
17,506
16,447
62,710
75,154
Non-interest expense
43,028
41,099
39,089
41,295
41,488
164,511
157,324
Income tax expense
5,770
6,710
5,446
6,170
5,974
24,096
30,372
Net income
25,275
28,195
22,360
26,357
25,310
102,187
126,051
Tax equivalent adjustment (1)
164
197
225
229
250
814
1,013
At Period End Total assets
$
8,455,342
$
8,236,140
$
8,010,624
$
7,590,880
$
7,481,402
Goodwill and intangibles
337,062
337,920
339,259
340,639
342,077
Tangible assets (2)
8,118,280
7,898,220
7,671,365
7,250,241
7,139,325
Earning assets
7,620,056
7,411,403
7,218,905
6,881,663
6,797,765
Loans
6,460,620
6,207,708
5,890,823
5,388,331
5,296,168
Allowance for loan losses
72,816
70,626
67,074
67,195
66,468
Deposits
6,906,719
6,732,505
6,516,344
6,317,235
6,282,051
Stockholders’ equity
887,721
864,960
901,147
943,296
1,023,496
Stockholders’ equity / assets
10.50
%
10.50
%
11.25
%
12.43
%
13.68
%
Tangible equity (2)
550,659
527,040
561,888
602,657
681,419
Tangible equity / tangible assets
6.78
%
6.67
%
7.32
%
8.31
%
9.54
%
Average Balances Total assets
$
8,304,462
$
8,161,389
$
7,742,550
$
7,541,414
$
7,510,397
$
7,932,398
$
7,482,578
Earning assets
7,653,648
7,477,795
7,051,661
6,754,862
6,736,250
7,237,621
6,732,178
Loans
6,359,564
6,120,324
5,667,853
5,382,825
5,356,113
5,885,969
5,473,668
Deposits and interest-bearing liabilities
7,278,531
7,116,910
6,706,250
6,415,483
6,386,341
6,882,309
6,385,080
Deposits
6,773,382
6,654,328
6,385,857
6,314,217
6,301,384
6,533,539
6,287,531
Stockholders’ equity
875,287
912,224
921,847
1,033,816
1,035,717
927,534
1,009,037
Goodwill and intangibles
337,207
338,583
339,932
341,353
342,853
339,255
345,187
Tangible equity (2)
538,080
573,641
581,915
692,463
692,864
588,279
663,850
Per Common Share Data Net Income (Loss): Basic
$
0.71
$
0.79
$
0.63
$
0.73
$
0.69
$
2.86
$
3.39
Diluted
0.71
0.79
0.63
0.73
0.69
2.85
3.39
Dividends Paid
0.30
0.30
0.30
0.30
0.28
1.20
1.05
Market Value: High
$
30.51
$
29.36
$
30.13
$
32.52
$
34.00
$
32.52
$
35.90
Low
26.11
24.67
25.31
28.58
28.75
24.67
22.23
Close
26.97
25.70
25.35
30.33
30.91
26.97
30.91
Common Book Value
24.94
24.32
25.35
26.48
28.13
Tangible Common Book Value (2)
15.47
14.82
15.80
16.92
18.73
Shares outstanding, end of period (000s)
35,591
35,563
35,555
35,621
36,384
Performance Ratios (annualized) Tax-equivalent net interest
margin (1)
3.28
%
3.40
%
3.36
%
3.44
%
3.41
%
3.37
%
3.39
%
Return on average assets
1.21
%
1.37
%
1.16
%
1.42
%
1.34
%
1.29
%
1.68
%
Return on average equity
11.46
%
12.26
%
9.73
%
10.34
%
9.70
%
11.02
%
12.49
%
Return on average tangible equity
18.64
%
19.50
%
15.41
%
15.44
%
14.49
%
17.37
%
18.99
%
Efficiency ratio (3)
56.76
%
51.26
%
52.23
%
54.60
%
56.14
%
53.68
%
51.83
%
Effective tax rate
18.59
%
19.22
%
19.59
%
18.97
%
19.10
%
19.08
%
19.42
%
Common dividend payout ratio
42.25
%
37.97
%
47.62
%
41.10
%
40.58
%
42.11
%
30.97
%
(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) 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. (3) Efficiency ratio = Non-interest expense
divided by sum of tax-equivalent net interest income plus
non-interest income, excluding securities gains or losses, net.
Premier Financial Corp. Yield Analysis
(dollars in thousands)
Three Months Ended Twelve Months
Ended 12/31/22 9/30/22 6/30/22 3/31/22 12/31/21
12/31/22 12/31/21
Average Balances
Interest-earning assets: Loans receivable (1)
$
6,359,564
$
6,120,324
$
5,667,853
$
5,382,825
$
5,356,113
$
5,885,969
$
5,473,668
Securities
1,235,814
1,261,527
1,288,073
1,250,321
1,245,096
1,258,901
1,135,434
Interest Bearing Deposits
29,884
68,530
76,401
109,757
123,456
70,917
111,433
FHLB stock
28,386
27,414
19,334
11,959
11,585
21,834
11,643
Total interest-earning assets
7,653,648
7,477,795
7,051,661
6,754,862
6,736,250
7,237,621
6,732,178
Non-interest-earning assets
650,814
683,594
690,889
786,552
774,147
694,777
750,400
Total assets
$
8,304,462
$
8,161,389
$
7,742,550
$
7,541,414
$
7,510,397
$
7,932,398
$
7,482,578
Deposits and Interest-bearing Liabilities: Interest bearing
deposits
$
4,901,412
$
4,846,419
$
4,614,223
$
4,600,801
$
4,609,064
$
4,741,827
$
4,611,525
FHLB advances and other
419,761
377,533
234,945
16,278
-
263,551
12,586
Subordinated debentures
85,084
85,049
85,020
84,988
84,957
85,036
84,911
Notes payable
304
-
428
-
-
183
52
Total interest-bearing liabilities
5,406,561
5,309,001
4,934,616
4,702,067
4,694,021
5,090,597
4,709,074
Non-interest bearing deposits
1,871,970
1,807,909
1,771,634
1,713,416
1,692,320
1,791,712
1,676,006
Total including non-interest-bearing deposits
7,278,531
7,116,910
6,706,250
6,415,483
6,386,341
6,882,309
6,385,080
Other non-interest-bearing liabilities
150,644
132,255
114,453
92,115
88,339
122,555
88,461
Total liabilities
7,429,175
7,249,165
6,820,703
6,507,598
6,474,680
7,004,864
6,473,541
Stockholders' equity
875,287
912,224
921,847
1,033,816
1,035,717
927,534
1,009,037
Total liabilities and stockholders' equity
$
8,304,462
$
8,161,389
$
7,742,550
$
7,541,414
$
7,510,397
$
7,932,398
$
7,482,578
Average interest-earning assets to interest-bearing liabilities
142
%
141
%
143
%
144
%
144
%
142
%
143
%
Interest Income/Expense Interest-earning
assets: Loans receivable (2)
$
72,201
$
65,564
$
56,573
$
55,248
$
55,013
$
249,586
$
223,823
Securities (2)
7,762
7,006
6,416
5,701
5,612
26,884
20,346
Interest Bearing Deposits
444
221
120
46
56
831
198
FHLB stock
482
510
174
59
59
1,225
233
Total interest-earning assets
80,889
73,301
63,283
61,054
60,740
278,526
244,600
Deposits and Interest-bearing Liabilities: Interest bearing
deposits
$
13,161
$
6,855
$
2,671
$
2,222
$
2,615
$
24,909
$
13,482
FHLB advances and other
3,941
2,069
527
13
-
6,550
23
Subordinated debentures
1,001
868
763
696
673
3,327
2,713
Notes payable
3
-
1
-
-
5
-
Total interest-bearing liabilities
18,106
9,792
3,962
2,931
3,288
34,791
16,218
Non-interest bearing deposits
-
-
-
-
-
-
-
Total including non-interest-bearing deposits
18,106
9,792
3,962
2,931
3,288
34,791
16,218
Net interest income
$
62,783
$
63,509
$
59,321
$
58,123
$
57,452
$
243,735
$
228,382
Less: PPP income
(6
)
(26
)
(160
)
(3,641
)
(2,686
)
(3,833
)
(14,544
)
Less: Acquisition marks accretion
(554
)
(608
)
(706
)
(737
)
(1,595
)
(2,606
)
(5,869
)
Core net interest income
$
62,223
$
62,875
$
58,455
$
53,745
$
53,171
$
237,296
$
207,969
Average Rates (3) Interest-earning assets:
Loans receivable
4.54
%
4.29
%
3.99
%
4.11
%
4.11
%
4.24
%
4.09
%
Securities (4)
2.51
%
2.22
%
1.99
%
1.82
%
1.80
%
2.14
%
1.79
%
Interest Bearing Deposits
5.94
%
1.29
%
0.63
%
0.17
%
0.18
%
1.17
%
0.18
%
FHLB stock
6.79
%
7.44
%
3.60
%
1.97
%
2.04
%
5.61
%
2.00
%
Total interest-earning assets
4.23
%
3.92
%
3.59
%
3.62
%
3.61
%
3.85
%
3.63
%
Deposits and Interest-bearing Liabilities: Interest bearing
deposits
1.07
%
0.57
%
0.23
%
0.19
%
0.23
%
0.53
%
0.29
%
FHLB advances and other
3.76
%
2.19
%
0.90
%
0.32
%
0.00
%
2.49
%
0.18
%
Subordinated debentures
4.71
%
4.08
%
3.59
%
3.28
%
3.17
%
3.91
%
3.20
%
Notes payable
3.95
%
-
0.93
%
-
-
2.73
%
0.75
%
Total interest-bearing liabilities
1.34
%
0.74
%
0.32
%
0.25
%
0.28
%
0.68
%
0.37
%
Non-interest bearing deposits
-
-
-
-
-
-
-
Total including non-interest-bearing deposits
1.00
%
0.55
%
0.24
%
0.18
%
0.21
%
0.51
%
0.25
%
Net interest spread
2.89
%
3.18
%
3.27
%
3.37
%
3.33
%
3.17
%
3.29
%
Net interest margin (5)
3.28
%
3.40
%
3.36
%
3.44
%
3.41
%
3.37
%
3.39
%
Core net interest margin (5)
3.25
%
3.36
%
3.32
%
3.20
%
3.21
%
3.28
%
3.24
%
(1) Includes average PPP loans of:
$
1,160
$
1,889
$
12,966
$
32,853
$
101,804
$
12,102
$
282,693
(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)
Annualized. (4) Securities yield = annualized interest income
divided by the average balance of securities, excluding average
unrealized gains/losses. (5) 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. Loans and Deposits Composition (dollars in
thousands)
4Q22
3Q22
2Q22
1Q22
4Q21
Loan Portfolio Composition Residential real estate
$
1,535,574
$
1,478,360
$
1,382,202
$
1,222,057
$
1,167,466
Residential real estate construction
176,737
119,204
85,256
97,746
121,621
Total residential loans
1,712,311
1,597,564
1,467,458
1,319,803
1,289,087
Commercial real estate
2,762,311
2,674,078
2,655,730
2,495,469
2,450,349
Commercial construction
428,743
398,044
319,590
260,421
263,304
Commercial excluding PPP
1,054,037
1,041,423
987,242
891,893
836,732
Core commercial loans (1)
4,245,091
4,113,545
3,962,562
3,647,783
3,550,385
Consumer direct/indirect
213,405
212,790
180,539
132,294
126,417
Home equity and improvement lines
277,613
272,367
266,144
261,176
264,354
Total consumer loans
491,018
485,157
446,683
393,470
390,771
Deferred loan origination fees
11,057
10,261
9,559
8,615
7,019
Core loans (1)
6,459,477
6,206,527
5,886,262
5,369,671
5,237,262
PPP loans
1,143
1,181
4,561
18,660
58,906
Total loans
$
6,460,620
$
6,207,708
$
5,890,823
$
5,388,331
$
5,296,168
Loans held for sale
$
115,251
$
129,142
$
145,092
$
153,498
$
162,947
Core residential loans (1)
1,827,562
1,726,706
1,612,550
1,473,301
1,452,034
Total loans including loans held for sale but excluding PPP
6,574,728
6,335,669
6,031,354
5,523,169
5,400,209
Undisbursed construction loan funds - residential
$
209,306
$
231,598
$
239,748
$
210,702
$
204,772
Undisbursed construction loan funds - commercial
463,469
493,199
449,101
314,843
273,118
Undisbursed construction loan funds - total
672,775
724,797
688,849
525,545
477,890
Total construction loans including undisbursed funds
$
1,278,255
$
1,242,045
$
1,093,695
$
883,712
$
862,815
Gross loans (2)
$
7,122,338
$
6,922,244
$
6,570,113
$
5,905,261
$
5,767,039
Deposit Portfolio Composition Non-interest-bearing
demand deposits
$
1,869,509
$
1,826,511
$
1,786,516
$
1,733,157
$
1,724,772
Interest-bearing demand deposits
1,048,666
1,084,550
1,060,308
1,135,088
1,015,795
Savings deposits
798,003
820,650
832,859
830,143
804,451
Money market account deposits
2,136,774
2,112,905
2,045,998
1,894,172
1,936,910
Retail time deposits less than $250
645,318
550,275
532,836
586,967
636,477
Retail time deposits greater than $250
264,741
267,733
257,827
137,708
163,646
Brokered deposits
143,708
69,881
-
-
-
Total deposits
$
6,906,719
$
6,732,505
$
6,516,344
$
6,317,235
$
6,282,051
(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
pastdue % ofTotal Non AccrualLoans %
ofTotal December 31, 2022 One to four family residential
real estate
$
1,535,574
$
1,520,074
$
6,792
0.4
%
$
8,708
0.6
%
Construction
1,278,255
1,277,818
437
0.0
%
-
0.0
%
Commercial real estate
2,762,311
2,747,539
1,205
0.0
%
13,567
0.5
%
Commercial
1,055,180
1,047,829
497
0.0
%
6,854
0.6
%
Home equity and improvement
277,613
270,138
5,216
1.9
%
2,259
0.8
%
Consumer finance
213,405
206,779
4,192
2.0
%
2,434
1.1
%
Gross loans
$
7,122,338
$
7,070,177
$
18,339
0.3
%
$
33,822
0.5
%
September 30, 2022 One to four family residential real
estate
$
1,478,360
$
1,464,319
$
6,232
0.4
%
$
7,809
0.5
%
Construction
1,242,045
1,242,045
-
0.0
%
-
0.0
%
Commercial real estate
2,674,078
2,660,068
116
0.0
%
13,894
0.5
%
Commercial
1,042,604
1,034,898
338
0.0
%
7,368
0.7
%
Home equity and improvement
272,367
267,077
3,144
1.2
%
2,146
0.8
%
Consumer finance
212,790
207,453
3,417
1.6
%
1,920
0.9
%
Gross loans
$
6,922,244
$
6,875,860
$
13,247
0.2
%
$
33,137
0.5
%
December 31, 2021 One to four family residential real estate
$
1,167,466
$
1,149,333
$
6,212
0.5
%
$
11,921
1.0
%
Construction
862,815
861,326
1,489
0.2
%
-
0.0
%
Commercial real estate
2,450,349
2,435,491
15
0.0
%
14,843
0.6
%
Commercial
895,638
879,521
76
0.0
%
16,041
1.8
%
Home equity and improvement
264,354
258,661
2,517
1.0
%
3,176
1.2
%
Consumer finance
126,417
122,361
2,023
1.6
%
2,033
1.6
%
Gross loans
$
5,767,039
$
5,706,693
$
12,332
0.2
%
$
48,014
0.8
%
Loan Risk Ratings Information (dollars in thousands)
Total Balance Pass Rated Special Mention %
ofTotal Classified % ofTotal December 31,
2022 One to four family residential real estate
$
1,524,029
$
1,514,719
$
935
0.1
%
$
8,375
0.5
%
Construction
1,278,255
1,278,255
-
0.0
%
-
0.0
%
Commercial real estate
2,760,766
2,694,443
46,029
1.7
%
20,294
0.7
%
Commercial
1,050,122
1,016,973
26,319
2.5
%
6,830
0.7
%
Home equity and improvement
275,204
273,613
-
0.0
%
1,591
0.6
%
Consumer finance
213,131
210,760
-
0.0
%
2,371
1.1
%
PCD loans
20,831
13,904
2,590
12.4
%
4,337
20.8
%
Gross loans
$
7,122,338
$
7,002,667
$
75,873
1.1
%
$
43,798
0.6
%
September 30, 2022 One to four family residential real
estate
$
1,466,470
$
1,458,082
$
1,267
0.1
%
$
7,121
0.5
%
Construction
1,242,045
1,240,745
1,300
0.1
%
-
0.0
%
Commercial real estate
2,672,451
2,584,984
65,233
2.4
%
22,234
0.8
%
Commercial
1,036,441
1,009,384
20,106
1.9
%
6,951
0.7
%
Home equity and improvement
269,786
268,384
-
0.0
%
1,402
0.5
%
Consumer finance
212,493
210,602
-
0.0
%
1,891
0.9
%
PCD loans
22,558
17,044
93
0.4
%
5,421
24.0
%
Gross loans
$
6,922,244
$
6,789,225
$
87,999
1.3
%
$
45,020
0.7
%
December 31, 2021 One to four family residential real estate
$
1,154,070
$
1,142,688
$
1,316
0.1
%
$
10,066
0.9
%
Construction
862,815
843,293
19,522
2.3
%
-
0.0
%
Commercial real estate
2,444,471
2,321,654
93,676
3.8
%
29,141
1.2
%
Commercial
886,472
857,905
14,815
1.7
%
13,752
1.6
%
Home equity and improvement
260,948
258,914
-
0.0
%
2,034
0.8
%
Consumer finance
125,926
124,073
-
0.0
%
1,853
1.5
%
PCD loans
32,337
19,547
101
0.3
%
12,689
39.2
%
Gross loans
$
5,767,039
$
5,568,074
$
129,430
2.2
%
$
69,535
1.2
%
Premier Financial Corp. Selected Quarterly
Information (dollars in thousands)
As of and for the three
months ended Twelve months ended Mortgage Banking
Summary 12/31/22 9/30/22 6/30/22 3/31/22 12/31/21
12/31/22 12/31/21 Revenue from sales and servicing of
mortgage loans: Mortgage banking gains, net
$
(1,285
)
$
3,363
$
1,166
$
2,543
$
2,774
$
5,787
$
16,437
Mortgage loan servicing revenue (expense): Mortgage loan servicing
revenue
1,862
1,861
1,862
1,879
1,909
7,464
7,574
Amortization of mortgage servicing rights
(1,271
)
(1,350
)
(1,375
)
(1,403
)
(1,774
)
(5,399
)
(7,892
)
Mortgage servicing rights valuation adjustments
396
96
295
1,233
151
2,019
5,806
987
607
782
1,709
286
4,084
5,488
Total revenue from sale/servicing of mortgage loans
$
(298
)
$
3,970
$
1,948
$
4,252
$
3,060
$
9,871
$
21,925
Mortgage servicing rights: Balance at beginning of period
$
21,915
$
21,872
$
22,189
$
22,244
$
21,963
$
22,244
$
21,666
Loans sold, servicing retained
1,214
1,393
1,058
1,348
2,056
5,013
8,471
Amortization
(1,271
)
(1,350
)
(1,375
)
(1,403
)
(1,774
)
(5,399
)
(7,893
)
Balance at end of period
21,858
21,915
21,872
22,189
22,245
21,858
22,244
Valuation allowance: Balance at beginning of period
(1,083
)
(1,179
)
(1,474
)
(2,707
)
(2,858
)
(2,706
)
(8,513
)
Impairment recovery (charges)
396
96
295
1,233
151
2,019
5,807
Balance at end of period
(687
)
(1,083
)
(1,179
)
(1,474
)
(2,707
)
(687
)
(2,706
)
Net carrying value at end of period
$
21,171
$
20,832
$
20,693
$
20,715
$
19,538
$
21,171
$
19,538
$
-
Allowance Summary Beginning allowance
$
70,626
$
67,074
$
67,195
$
66,468
$
73,217
$
66,468
$
82,079
Provision (benefit) for credit losses - loans
3,020
3,706
5,151
626
2,816
12,503
(6,733
)
Net recoveries (charge-offs)
(830
)
(154
)
(5,272
)
101
(9,565
)
(6,155
)
(8,878
)
Ending allowance
$
72,816
$
70,626
$
67,074
$
67,195
$
66,468
$
72,816
$
66,468
Total loans
$
6,460,620
$
6,207,708
$
5,890,823
$
5,388,331
$
5,296,168
Less: PPP loans
(1,143
)
(1,181
)
(4,561
)
(18,660
)
(58,906
)
Total loans ex PPP
$
6,459,477
$
6,206,527
$
5,886,262
$
5,369,671
$
5,237,262
Allowance for credit losses (ACL)
$
72,816
$
70,626
$
67,074
$
67,195
$
66,468
Add: Unaccreted purchase accounting marks
2,706
3,291
3,924
4,652
5,418
Adjusted ACL
$
75,522
$
73,917
$
70,998
$
71,847
$
71,886
ACL/Loans
1.13
%
1.14
%
1.14
%
1.25
%
1.26
%
Adjusted ACL/Loans ex PPP
1.17
%
1.19
%
1.21
%
1.34
%
1.37
%
Credit Quality Total non-performing loans (1)
$
33,822
$
33,137
$
34,735
$
47,298
$
48,014
Real estate owned (REO)
619
416
462
253
171
Total non-performing assets (2)
$
34,441
$
33,553
$
35,197
$
47,551
$
48,185
Net charge-offs (recoveries)
830
154
5,272
(101
)
9,565
Restructured loans, accruing (3)
6,587
6,909
5,899
6,287
7,768
Allowance for credit losses - loans / loans
1.13
%
1.14
%
1.14
%
1.25
%
1.26
%
Allowance for credit losses - loans / non-performing assets
211.42
%
210.49
%
190.57
%
141.31
%
137.94
%
Allowance for credit losses - loans / non-performing loans
215.29
%
213.13
%
193.10
%
142.07
%
138.43
%
Non-performing assets / loans plus REO
0.53
%
0.54
%
0.60
%
0.88
%
0.91
%
Non-performing assets / total assets
0.41
%
0.41
%
0.44
%
0.63
%
0.64
%
Net charge-offs / average loans (annualized)
0.05
%
0.01
%
0.37
%
-0.01
%
0.71
%
Net charge-offs / average loans LTM
0.10
%
0.26
%
0.27
%
0.17
%
0.16
%
(1) Non-performing loans consist of non-accrual loans. (2)
Non-performing assets are non-performing loans plus real estate and
other assets acquired by foreclosure or deed-in-lieu thereof. (3)
Accruing restructured loans are loans with known credit problems
that are not contractually past due and therefore are not included
in non-performing loans.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230124005934/en/
Paul Nungester EVP and CFO, 419.785.8700
PNungester@yourpremierbank.com
Premier Financial (NASDAQ:PFC)
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