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Premier Financial Corp. Announces Second Quarter 2022 Results Including Strong Loan and Deposit Growth

Second Quarter 2022 Highlights

  • Loan growth of $494.1 million (up 35.7% annualized) including $314.8 million for commercial loans excluding PPP (up 34.5% annualized) and $139.2 million for residential loans including held for sale (up 37.8% annualized)
  • Deposit growth of $199.1 million (up 12.6% annualized) including $53.4 million of non-interest-bearing (up 12.3% annualized)
  • Net interest income (tax equivalent) of $59.3 million or $58.5 million excluding PPP and marks, up 2.1% and 8.8%, respectively, from 2022 first quarter
  • Net interest margin (tax equivalent) of 3.36% or 3.32% excluding PPP and acquisition marks accretion, down six but up 12 basis points, respectively, from 2022 first quarter
  • Asset quality improved with non-performing loans down 26.6% and classified loans down 19.0% from 2022 first quarter
  • Declared dividend of $0.30 per share, up 11.1% from prior year comparable period

Premier Financial Corp. (Nasdaq: PFC) (“Premier” or the “Company”) announced today 2022 second quarter results. Net income for the second quarter of 2022 was $22.4 million, or $0.63 per diluted common share, compared to $31.4 million, or $0.84 per diluted common share, for the second quarter of 2021. The year-over-year comparison is primarily impacted by increased provision for credit losses due to loan growth, lower PPP interest income and securities gain/loss fluctuations, which are summarized as follows and discussed further below.

$000s except EPS

Second quarter 2022

Second quarter 2021

Item

Pre-tax

After-tax

EPS

Pre-tax

After-tax

EPS

Provision benefit (expense)

($6,566)

($5,187)

($0.15)

$3,919

$3,096

$0.08

PPP interest income

$160

$126

$0.00

$3,950

$3,121

$0.08

Security gains (losses)

($1,161)

($917)

($0.03)

$661

$522

$0.01

“Excellent work by the entire Premier team to essentially drive an entire year’s worth of loan and deposit growth into a single quarter,” said Gary Small, President and CEO of Premier. “Commercial, consumer and residential mortgage balances grew in a range of 8.6% to 13.5% for the quarter while deposit growth totaled 3.2%. Year-to-date loan growth adjusting for PPP totaled 12.4%, a reflection of the strength of the business opportunities across our markets and the solid financial position of the households we serve.”

Quarterly results

Strong loan and deposit growth

Gross loans including those held for sale increased $494.1 million (up 35.7% annualized) on a linked quarter basis. Loan growth occurred in each category including $314.8 million from commercial loans excluding PPP (up 34.5% annualized), $139.2 million from residential loans including held for sale (up 37.8% annualized) and $53.2 million from consumer/home equity loans (up 54.1% annualized). PPP loans decreased $14.1 million and were only $4.6 million as of June 30, 2022.

Deposits increased $199.1 million (up 12.6% annualized) on a linked quarter basis. Deposit growth occurred in each category including $53.4 million from non-interest bearing deposits (up 12.3% annualized) and $145.8 million from interest-bearing deposits (up 12.7% annualized).

Net interest income and margin expansion

Net interest income of $59.3 million on a tax equivalent basis in the second quarter of 2022 was up 2.1% from $58.1 million in the first quarter of 2022 and up 4.3% from $56.9 million in the second quarter of 2021. Net interest margin of 3.36% in the second quarter of 2022 decreased eight basis points from 3.44% in the first quarter of 2022 but increased two basis points from 3.34% in the second quarter of 2021. Results for all periods include the impact of PPP as well as acquisition marks and related accretion for the UCFC acquisition. Second quarter 2022 includes $469,000 of accretion in interest income, $237,000 of accretion in interest expense and $160,000 of interest income on average balances of $13.0 million for PPP. Only $12,000 of PPP fees remain unrecognized as of June 30, 2022. Excluding the impact of acquisition marks accretion and PPP loans, net interest income was $58.5 million, up 8.8% from $53.7 million in the first quarter of 2022 and up 14.0% from $51.3 million in the second quarter of 2021. Additionally, net interest margin was 3.32% for the second quarter of 2022, up 12 basis points from 3.20% for the first quarter of 2022 and the second quarter of 2021. These improved results are primarily due to the combination of loan growth excluding PPP as discussed above and higher loan yields excluding PPP and acquisition marks accretion, which were 3.94% for the second quarter of 2022 compared to 3.80% in the first quarter of 2022 and 3.91% in the second quarter of 2021. The cost of funds in the second quarter of 2022 was 0.24%, up six basis points from the first quarter of 2022 but down two basis points from the second quarter of 2021. The linked quarter increase was primarily due to an increased utilization of higher cost FHLB borrowings as a result of loan growth in excess of deposit growth. The year-over-year decrease is primarily due to lower average deposit costs, which were 0.17% for the second quarter of 2022 compared to 0.22% for the second quarter of 2021.

Service fees increasing but total non-interest income impacted by mortgage banking and securities

Service fees in the second quarter of 2022 were $6.7 million, an 11% increase from $6.0 million in the first quarter of 2022 and a 6% increase from $6.3 million in the second quarter of 2021, primarily due to increased consumer activity for interchange and ATM/NSF charges. However, total non-interest income in the second quarter of 2022 of $14.4 million was down from $16.9 million in the first quarter of 2022 and $17.3 million in the second quarter of 2021 due to fluctuations in mortgage banking and gains/losses on securities. Mortgage banking income decreased $2.3 million on a linked quarter basis due to a $1.4 million decrease in gains primarily from lower saleable mix and a $0.9 million lower MSR valuation gain. Mortgage banking income for the second quarter decreased $0.2 million year-over-year due to a $1.5 million decrease in gains primarily from compressed margins and lower saleable mix offset by a $1.3 million benefit from lower MSR amortization and an MSR valuation gain in 2022 compared to a loss in 2021. Securities losses were $1.2 million in the second quarter of 2022 from decreased valuations on equity securities, compared to $0.6 million of losses on equity securities in the first quarter of 2022 and compared to $0.7 million of net gains in the second quarter of 2021, comprised of $1.5 million from available-for-sale security sales gains offset by $0.8 million of losses on equity securities. Other income for the second quarter decreased $1.5 million from 2021, primarily due to a $1.3 million non-recurring settlement payment in the second quarter of 2021.

“The rising rate environment is having a predictably favorable effect on net interest income,” said Small. “Margin improvement combined with outstanding loan growth make a powerful combination overcoming the unfavorable effects of a flat to inverted yield curve. Our favorable interest income trend is serving to offset the negative effect the current rate environment has created for the residential mortgage business. While our mortgage origination activity has performed well during the first half of the year, the combination of rising rates, interest rate volatility, and general market uncertainty continues to put pressure on gain on sale fee income and is expected to continue through the remainder of the year.”

Managing non-interest expenses and efficiency

Non-interest expenses in the second quarter of 2022 were $39.1 million, a 5% decrease from $41.3 million in the first quarter of 2022 but a 3% increase from $38.1 million in the second quarter of 2021, primarily due to fluctuations in compensation and benefit expenses. Compensation and benefits were $22.3 million in the second quarter of 2022, compared to $25.5 million in the first quarter of 2022 and $21.0 million in the second quarter of 2021. The linked quarter decrease was primarily due to higher deferred costs related to increased loan production and lower healthcare benefit costs. The year-over-year increase was primarily due to costs related to higher staffing levels for our growth initiatives. All other non-interest expenses increased $1.0 million on a linked quarter basis primarily due to consulting/advisory services and decreased a net $0.3 million on a year-over-year basis due to cost cutting initiatives. The efficiency ratio for the second quarter 2022 of 52.23% improved from 54.60% in the first quarter of 2022, primarily due to lower expenses, and was generally consistent with 51.85% in the second quarter of 2021.

“We continue to invest in our people and efforts to improve our client's experience while managing to keep our overall expense profile well under control,” said Small.

Credit quality

Non-performing assets totaled $35.2 million, or 0.44% of assets, at June 30, 2022, a decrease from $47.6 million at March 31, 2022, and from $41.3 million at June 30, 2021. Loan delinquencies increased to $11.2 million, or 0.2% of loans, at June 30, 2022, from $7.6 million at March 31, 2022, and from $9.9 million at June 30, 2021. Classified loans totaled $48.8 million, or 0.7% of loans, as of June 30, 2022, a decrease from $60.3 million at March 31, 2022, and from $101.3 million at June 30, 2021.

The 2022 second quarter results include net loan charge-offs of $5.3 million and a total provision expense of $6.6 million, compared with net loan recoveries of $244,000 and a total provision benefit of $3.9 million for the same period in 2021. The current year provision is primarily due to loan growth, whereas the prior year provision was primarily due to the improving economic environment following the COVID-19 pandemic-induced economic recession and reserve increase in 2020. The allowance for credit losses as a percentage of total loans was 1.14% at June 30, 2022, compared with 1.25% at March 31, 2022, and 1.33% at June 30, 2021. The allowance for credit losses as a percentage of total loans excluding PPP and including unaccreted acquisition marks was 1.21% at June 30, 2022, compared with 1.34% at March 31, 2022, and 1.57% at June 30, 2021. The continued economic improvement following the 2020 pandemic-related downturn has resulted in a year-over-year decrease in the allowance percentages.

“Asset quality continued to improve this quarter with a 27% decrease in non-performing loans and a 19% decrease in classified loans,” said Paul Nungester, CFO of Premier. “Our non-performing loans have declined to 0.5% of total loans while our coverage level of non-performing loans has increased to 193%.”

Year to date results

For the six-month period ended June 30, 2022, net income totaled $48.7 million, or $1.36 per diluted common share, compared to $72.4 million, or $1.94 per diluted common share for the six months ended June 30, 2021. The year-over-year comparison is primarily impacted by fluctuations in the provision for credit losses, mortgage banking income, PPP interest income and securities gains/losses, which are summarized as follows.

$000s except EPS

First half 2022

First half 2021

Item

Pre-tax

After-tax

EPS

Pre-tax

After-tax

EPS

Provision benefit (expense)

($7,501)

($5,926)

($0.17)

$10,882

$8,596

$0.23

Mortgage banking income

$6,200

$4,898

$0.14

$12,691

$10,025

$0.27

PPP interest income

$3,801

$3,003

$0.08

$8,971

$7,087

$0.19

Security gains (losses)

($1,804)

($1,425)

($0.04)

$2,787

$2,202

$0.06

Net interest income of $117.4 million on a tax equivalent basis in the first half of 2022 was up 3.3% from $113.6 million in the first half of 2021. Net interest margin of 3.40% in the first half of 2022 increased by one basis point from 3.39% in the first half of 2021. Results for each period include the impact of PPP as well as acquisition marks and related accretion for the UCFC acquisition. The first half of 2022 includes $959,000 of accretion in interest income, $484,000 of accretion in interest expense and $3.8 million of interest income on average balances of $22.9 million for PPP. Excluding the impact of acquisition marks accretion and PPP loans, net interest income was $112.2 million, up 10.8% from $101.3 million in the first half of 2021. Additionally, net interest margin was 3.26% for the first half of 2022, up four basis points from 3.22% for first half of 2021. These improved results are primarily due to lower costs of funds and loan growth excluding PPP, partially offset by lower PPP income and accretion from acquisition marks. Cost of funds in the first half of 2022 were 0.21%, down 8 basis points from the first half of 2021. The year-over-year decrease is primarily due to lower average deposit costs, which were 0.16% for the first half of 2022 compared to 0.25% for the first half of 2021.

Service fees in the first half of 2022 were $12.7 million, an 8% increase from $11.8 million in the first half of 2021, primarily due to increased consumer activity for interchange and ATM/NSF charges. However, total non-interest income in the first half of 2022 of $31.2 million was down from $43.4 million in the first half of 2021 due to fluctuations in mortgage banking, gains/losses on securities and other income. Mortgage banking income decreased $6.5 million from 2021 due to a $4.6 million decrease in gains primarily from compressed margins and lower saleable mix and a $3.3 million decrease from lower MSR valuation gains, partially offset by a $1.5 million benefit from lower MSR amortization. Securities losses were $1.8 million in the first half of 2022 from decreased valuations on equity securities compared to $2.8 million of net gains in the first half of 2021 comprised of $2.0 million from available-for-sale security sales gains and $0.8 million of gains on equity securities. Other income for the first half decreased $1.5 million from 2021, primarily due to a $1.3 million non-recurring settlement payment in the first half of 2021.

Non-interest expenses in the first half of 2022 were $80.4 million, a 5% increase from $76.7 million in the first half of 2021, primarily due to fluctuations in compensation and benefit expenses. Compensation and benefits were $47.8 million in the first half of 2022 compared to $43.0 million in the first half of 2021. The year-over-year increase was primarily due to costs related to higher staffing levels for our growth initiatives. All other non-interest expenses decreased a net $1.2 million on a year-over-year basis due to cost cutting initiatives. The efficiency ratio for the first half of 2022 was 53.42% compared to 49.75% in the first half of 2021, partly due to higher expenses but primarily due to lower non-interest income discussed above.

The 2022 first half results include net loan charge-offs of $5.2 million and a total provision expense of $7.5 million, compared with net loan recoveries of $500,000 and a total provision benefit of $10.9 million for the same period 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.

Total assets at $8.01 billion

Total assets at June 30, 2022, were $8.01 billion, compared to $7.59 billion at March 31, 2022, and $7.59 billion at June 30, 2021. Gross loans receivable were $5.90 billion at June 30, 2022, compared to $5.39 billion at March 31, 2022, and $5.35 billion at June 30, 2021. At June 30, 2022, gross loans receivable increased $547.7 million from a year ago, despite a $282.7 million decrease in PPP loans. Excluding PPP, loans grew $830.4 million organically, or 16.4% from a year ago. Commercial loans excluding PPP increased by $543.2 million from June 30, 2021, to 2022, or 15.9%. Securities at June 30, 2022, were $1.15 billion, compared to $1.23 billion at March 31, 2022, and $1.29 billion at June 30, 2021. Also, at June 30, 2022, goodwill and other intangible assets totaled $339.3 million compared to $340.6 million at March 31, 2022, and $345.1 million at June 30, 2021, with the decreases attributable to intangibles amortization.

Total deposits at June 30, 2021, were $6.52 billion, compared with $6.32 billion at March 31, 2022, and $6.29 billion at June 30, 2021. At June 30, 2022, total deposits grew $199.1 million organically, or 12.6% annualized from the prior quarter and $224.9 million of 3.6% from June 30, 2021.

Total stockholders’ equity was $0.90 billion at June 30, 2022, compared to $0.94 billion at March 31, 2022, and $1.03 billion at June 30, 2021. The quarterly decrease in stockholders’ equity was primarily due to a decrease in accumulated other comprehensive income (“AOCI”) and buybacks. The decrease in AOCI is primarily related to a $42.0 million negative valuation adjustment on the available-for-sale securities portfolio. The Company also completed the repurchase of 90,870 common shares for $2.6 million during the quarter. At June 30, 2022, 1,200,130 common shares remained available for repurchase under the Company’s existing repurchase program.

Dividend to be paid August 12

The Board of Directors declared a quarterly cash dividend of $0.30 per common share payable August 12, 2022, to shareholders of record at the close of business on August 5, 2022. The dividend represents an annual dividend of 4.4 percent based on the Premier common stock closing price on July 25, 2022. Premier has approximately 35,555,000 common shares outstanding.

Conference call

Premier will host a conference call at 11:00 a.m. ET on Wednesday, July 27, 2022, to discuss the earnings results and business trends. The conference call may be accessed by calling 1-844-200-6205 and using access code 276702. Internet access to the call is also available (in listen-only mode) at the following URL: https://events.q4inc.com/attendee/403093314. 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 June 30, 2022, 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 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.
 

June 30,

March 31,

December 31,

September 30,

June 30,

(in thousands)

2022

2022

2021

2021

2021

 
Assets
Cash and cash equivalents
Cash and amounts due from depositories

$

62,080

 

$

62,083

 

$

54,858

 

$

63,480

 

$

63,790

 

Interest-bearing deposits

 

72,314

 

 

91,683

 

 

106,708

 

 

51,614

 

 

67,718

 

 

134,394

 

 

153,766

 

 

161,566

 

 

115,094

 

 

131,508

 

 
Available-for-sale, carried at fair value

 

1,140,466

 

 

1,219,365

 

 

1,206,260

 

 

1,250,087

 

 

1,279,128

 

Equity securities, carried at fair value

 

13,293

 

 

13,454

 

 

14,097

 

 

12,965

 

 

12,945

 

Securities investments

 

1,153,759

 

 

1,232,819

 

 

1,220,357

 

 

1,263,052

 

 

1,292,073

 

 
Loans (1)

 

5,890,823

 

 

5,388,331

 

 

5,296,168

 

 

5,269,566

 

 

5,348,400

 

Allowance for credit losses - loans

 

(67,074

)

 

(67,195

)

 

(66,468

)

 

(73,217

)

 

(71,367

)

Loans, net

 

5,823,749

 

 

5,321,136

 

 

5,229,700

 

 

5,196,349

 

 

5,277,033

 

Loans held for sale

 

145,092

 

 

153,498

 

 

162,947

 

 

178,490

 

 

199,070

 

Mortgage servicing rights

 

20,693

 

 

20,715

 

 

19,538

 

 

19,105

 

 

18,041

 

Accrued interest receivable

 

22,533

 

 

21,765

 

 

20,767

 

 

22,994

 

 

23,459

 

Federal Home Loan Bank stock

 

23,991

 

 

15,332

 

 

11,585

 

 

11,585

 

 

12,747

 

Bank Owned Life Insurance

 

168,746

 

 

167,763

 

 

166,767

 

 

166,866

 

 

145,919

 

Office properties and equipment

 

54,060

 

 

54,684

 

 

55,602

 

 

56,073

 

 

56,259

 

Real estate and other assets held for sale

 

462

 

 

253

 

 

171

 

 

261

 

 

45

 

Goodwill

 

317,948

 

 

317,948

 

 

317,948

 

 

317,948

 

 

317,948

 

Core deposit and other intangibles

 

21,311

 

 

22,691

 

 

24,129

 

 

25,612

 

 

27,140

 

Other assets

 

123,886

 

 

108,510

 

 

90,325

 

 

94,889

 

 

92,478

 

Total Assets

$

8,010,624

 

$

7,590,880

 

$

7,481,402

 

$

7,468,318

 

$

7,593,720

 

 
Liabilities and Stockholders’ Equity
Non-interest-bearing deposits

$

1,786,516

 

$

1,733,157

 

$

1,724,772

 

$

1,618,769

 

$

1,649,664

 

Interest-bearing deposits

 

4,729,828

 

 

4,584,078

 

 

4,557,279

 

 

4,629,889

 

 

4,641,795

 

Total deposits

 

6,516,344

 

 

6,317,235

 

 

6,282,051

 

 

6,248,658

 

 

6,291,459

 

Advances from FHLB

 

380,000

 

 

150,000

 

 

-

 

 

-

 

 

105,000

 

Notes payable and other interest-bearing liabilities

 

-

 

 

-

 

 

-

 

 

18,812

 

 

-

 

Subordinated debentures

 

85,039

 

 

85,008

 

 

84,976

 

 

84,944

 

 

84,913

 

Advance payments by borrowers

 

40,344

 

 

20,332

 

 

24,716

 

 

19,495

 

 

19,474

 

Reserve for credit losses - unfunded commitments

 

6,755

 

 

5,340

 

 

5,031

 

 

5,838

 

 

5,613

 

Other liabilities

 

80,995

 

 

69,669

 

 

61,132

 

 

58,702

 

 

59,558

 

Total Liabilities

 

7,109,477

 

 

6,647,584

 

 

6,457,906

 

 

6,436,449

 

 

6,566,017

 

Stockholders’ Equity
Preferred stock

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Common stock, net

 

306

 

 

306

 

 

306

 

 

306

 

 

306

 

Additional paid-in-capital

 

690,905

 

 

691,350

 

 

691,132

 

 

690,783

 

 

689,785

 

Accumulated other comprehensive income (loss)

 

(126,754

)

 

(75,497

)

 

(3,428

)

 

1,609

 

 

10,953

 

Retained earnings

 

470,779

 

 

459,087

 

 

443,517

 

 

428,518

 

 

410,153

 

Treasury stock, at cost

 

(134,089

)

 

(131,950

)

 

(108,031

)

 

(89,347

)

 

(83,494

)

Total Stockholders’ Equity

 

901,147

 

 

943,296

 

 

1,023,496

 

 

1,031,869

 

 

1,027,703

 

Total Liabilities and Stockholders’ Equity

$

8,010,624

 

$

7,590,880

 

$

7,481,402

 

$

7,468,318

 

$

7,593,720

 

 
(1) Includes PPP loans of:

$

4,561

 

$

18,660

 

$

58,906

 

$

143,949

 

$

287,229

 

Consolidated Statements of Income (Unaudited)
Premier Financial Corp.
Three Months Ended Six Months Ended
(in thousands, except per share amounts) 6/30/22 3/31/22 12/31/21 9/30/21 6/30/21 6/30/22 6/30/21
Interest Income:
Loans

$

56,567

 

$

55,241

 

$

55,007

 

$

55,443

 

$

55,772

 

$

111,808

 

$

113,338

 

Investment securities

 

6,197

 

 

5,479

 

 

5,369

 

 

5,325

 

 

4,994

 

 

11,676

 

 

8,674

 

Interest-bearing deposits

 

120

 

 

46

 

 

56

 

 

33

 

 

42

 

 

166

 

 

108

 

FHLB stock dividends

 

174

 

 

59

 

 

58

 

 

60

 

 

56

 

 

233

 

 

115

 

Total interest income

 

63,058

 

 

60,825

 

 

60,490

 

 

60,861

 

 

60,864

 

 

123,883

 

 

122,235

 

Interest Expense:
Deposits

 

2,671

 

 

2,222

 

 

2,615

 

 

3,144

 

 

3,559

 

 

4,893

 

 

7,723

 

FHLB advances

 

527

 

 

13

 

 

-

 

 

11

 

 

12

 

 

540

 

 

12

 

Subordinated debentures

 

763

 

 

696

 

 

673

 

 

671

 

 

674

 

 

1,459

 

 

1,369

 

Notes Payable

 

1

 

 

-

 

 

-

 

 

-

 

 

-

 

 

1

 

 

-

 

Total interest expense

 

3,962

 

 

2,931

 

 

3,288

 

 

3,826

 

 

4,245

 

 

6,893

 

 

9,104

 

Net interest income

 

59,096

 

 

57,894

 

 

57,202

 

 

57,035

 

 

56,619

 

 

116,990

 

 

113,131

 

Provision (benefit) for credit losses - loans

 

5,151

 

 

626

 

 

2,816

 

 

1,594

 

 

(3,631

)

 

5,777

 

 

(11,145

)

Provision (benefit) for credit losses - unfunded commitments

 

1,415

 

 

309

 

 

(807

)

 

226

 

 

(288

)

 

1,724

 

 

263

 

Total provision (benefit) for credit losses

 

6,566

 

 

935

 

 

2,009

 

 

1,820

 

 

(3,919

)

 

7,501

 

 

(10,882

)

Net interest income after provision

 

52,530

 

 

56,959

 

 

55,193

 

 

55,215

 

 

60,538

 

 

109,489

 

 

124,013

 

Non-interest Income:
Service fees and other charges

 

6,676

 

 

6,000

 

 

6,351

 

 

6,067

 

 

6,282

 

 

12,676

 

 

11,751

 

Mortgage banking income

 

1,948

 

 

4,252

 

 

3,060

 

 

6,175

 

 

2,157

 

 

6,200

 

 

12,691

 

Gain (loss) on sale of available for sale securities

 

-

 

 

-

 

 

-

 

 

233

 

 

1,469

 

 

-

 

 

1,985

 

Gain (loss) on equity securities

 

(1,161

)

 

(643

)

 

1,132

 

 

20

 

 

(808

)

 

(1,804

)

 

802

 

Insurance commissions

 

4,334

 

 

4,639

 

 

3,379

 

 

3,461

 

 

4,059

 

 

8,973

 

 

8,940

 

Wealth management income

 

1,414

 

 

1,477

 

 

1,383

 

 

1,321

 

 

1,566

 

 

2,891

 

 

3,322

 

Income from Bank Owned Life Insurance

 

983

 

 

996

 

 

2,145

 

 

947

 

 

859

 

 

1,979

 

 

2,028

 

Other non-interest income

 

171

 

 

142

 

 

129

 

 

146

 

 

1,700

 

 

313

 

 

1,859

 

Total Non-interest Income

 

14,365

 

 

16,863

 

 

17,579

 

 

18,370

 

 

17,284

 

 

31,228

 

 

43,378

 

Non-interest Expense:
Compensation and benefits

 

22,334

 

 

25,541

 

 

24,247

 

 

23,355

 

 

21,046

 

 

47,875

 

 

43,044

 

Occupancy

 

3,494

 

 

3,700

 

 

3,859

 

 

3,693

 

 

3,837

 

 

7,194

 

 

7,949

 

FDIC insurance premium

 

802

 

 

593

 

 

781

 

 

695

 

 

522

 

 

1,395

 

 

1,420

 

Financial institutions tax

 

1,074

 

 

1,191

 

 

526

 

 

1,187

 

 

1,177

 

 

2,265

 

 

2,367

 

Data processing

 

3,442

 

 

3,335

 

 

3,447

 

 

3,387

 

 

3,334

 

 

6,777

 

 

6,716

 

Amortization of intangibles

 

1,380

 

 

1,438

 

 

1,483

 

 

1,528

 

 

1,575

 

 

2,818

 

 

3,197

 

Other non-interest expense

 

6,563

 

 

5,497

 

 

7,145

 

 

5,256

 

 

6,623

 

 

12,060

 

 

12,043

 

Total Non-interest Expense

 

39,089

 

 

41,295

 

 

41,488

 

 

39,101

 

 

38,114

 

 

80,384

 

 

76,736

 

Income before income taxes

 

27,806

 

 

32,527

 

 

31,284

 

 

34,484

 

 

39,708

 

 

60,333

 

 

90,655

 

Income tax expense

 

5,446

 

 

6,170

 

 

5,974

 

 

6,124

 

 

8,323

 

 

11,616

 

 

18,274

 

Net Income

$

22,360

 

$

26,357

 

$

25,310

 

$

28,360

 

$

31,385

 

$

48,717

 

$

72,381

 

 
 
Earnings per common share:
Basic

$

0.63

 

$

0.73

 

$

0.69

 

$

0.76

 

$

0.84

 

$

1.36

 

$

1.94

 

Diluted

$

0.63

 

$

0.73

 

$

0.69

 

$

0.76

 

$

0.84

 

$

1.36

 

$

1.94

 

 
Average Shares Outstanding:
Basic

 

35,560

 

 

35,978

 

 

36,740

 

 

37,100

 

 

37,276

 

 

35,768

 

 

37,274

 

Diluted

 

35,682

 

 

36,090

 

 

36,848

 

 

37,185

 

 

37,358

 

 

35,880

 

 

37,351

 

Premier Financial Corp.
Selected Quarterly Information
 
(dollars in thousands, except per share data)

2Q22

1Q22

4Q21

3Q21

2Q21

 

YTD 2022

YTD 2021

Summary of Operations
Tax-equivalent interest income (1)

$

63,283

 

$

61,054

 

$

60,740

 

$

61,117

 

$

61,134

 

$

124,336

 

$

122,742

 

Interest expense

 

3,962

 

 

2,931

 

 

3,288

 

 

3,826

 

 

4,245

 

 

6,893

 

 

9,104

 

Tax-equivalent net interest income (1)

 

59,321

 

 

58,123

 

 

57,452

 

 

57,291

 

 

56,889

 

 

117,443

 

 

113,638

 

Provision expense (benefit) for credit losses

 

6,566

 

 

935

 

 

2,009

 

 

1,820

 

 

(3,919

)

 

7,501

 

 

(10,882

)

Investment securities gains (losses)

 

(1,161

)

 

(643

)

 

1,132

 

 

253

 

 

661

 

 

(1,804

)

 

2,787

 

Non-interest income (ex securities gains/losses)

 

15,526

 

 

17,506

 

 

16,447

 

 

18,117

 

 

16,623

 

 

33,032

 

 

40,591

 

Non-interest expense

 

39,089

 

 

41,295

 

 

41,488

 

 

39,101

 

 

38,114

 

 

80,384

 

 

76,736

 

Income tax expense

 

5,446

 

 

6,170

 

 

5,974

 

 

6,124

 

 

8,323

 

 

11,616

 

 

18,274

 

Net income

 

22,360

 

 

26,357

 

 

25,310

 

 

28,360

 

 

31,385

 

 

48,717

 

 

72,381

 

Tax equivalent adjustment (1)

 

225

 

 

229

 

 

250

 

 

256

 

 

270

 

 

453

 

 

507

 

At Period End
Total assets

$

8,010,624

 

$

7,590,880

 

$

7,481,402

 

$

7,468,318

 

$

7,593,720

 

Goodwill and intangibles

 

339,259

 

 

340,639

 

 

342,077

 

 

343,560

 

 

345,088

 

Tangible assets (2)

 

7,671,365

 

 

7,250,241

 

 

7,139,325

 

 

7,124,758

 

 

7,248,632

 

Earning assets

 

7,218,905

 

 

6,881,663

 

 

6,797,765

 

 

6,774,307

 

 

6,920,008

 

Loans

 

5,890,823

 

 

5,388,331

 

 

5,296,168

 

 

5,269,566

 

 

5,348,400

 

Allowance for loan losses

 

67,074

 

 

67,195

 

 

66,468

 

 

73,217

 

 

71,367

 

Deposits

 

6,516,344

 

 

6,317,235

 

 

6,282,051

 

 

6,248,658

 

 

6,291,459

 

Stockholders’ equity

 

901,147

 

 

943,296

 

 

1,023,496

 

 

1,031,869

 

 

1,027,703

 

Stockholders’ equity / assets

 

11.25

%

 

12.43

%

 

13.68

%

 

13.82

%

 

13.53

%

Tangible equity (2)

 

561,888

 

 

602,657

 

 

681,419

 

 

688,309

 

 

682,615

 

Tangible equity / tangible assets

 

7.32

%

 

8.31

%

 

9.54

%

 

9.66

%

 

9.42

%

Average Balances
Total assets

$

7,742,550

 

$

7,541,414

 

$

7,510,397

 

$

7,529,100

 

$

7,549,531

 

$

7,626,888

 

$

7,444,791

 

Earning assets

 

7,051,661

 

 

6,754,862

 

 

6,736,250

 

 

6,773,021

 

 

6,806,275

 

 

6,904,082

 

 

6,709,348

 

Loans

 

5,667,853

 

 

5,382,825

 

 

5,356,113

 

 

5,416,696

 

 

5,495,782

 

 

5,526,127

 

 

5,562,379

 

Deposits and interest-bearing liabilities

 

6,706,250

 

 

6,415,483

 

 

6,386,341

 

 

6,422,455

 

 

6,454,731

 

 

6,561,669

 

 

6,365,441

 

Deposits

 

6,385,857

 

 

6,314,217

 

 

6,301,384

 

 

6,317,229

 

 

6,339,673

 

 

6,350,235

 

 

6,265,394

 

Stockholders’ equity

 

921,847

 

 

1,033,816

 

 

1,035,717

 

 

1,020,206

 

 

1,006,757

 

 

961,873

 

 

989,800

 

Goodwill and intangibles

 

339,932

 

 

341,353

 

 

342,853

 

 

344,331

 

 

345,972

 

 

340,639

 

 

346,810

 

Tangible equity (2)

 

581,915

 

 

692,463

 

 

692,864

 

 

675,875

 

 

660,785

 

 

621,234

 

 

642,990

 

Per Common Share Data
Net Income (Loss):
Basic

$

0.63

 

$

0.73

 

$

0.69

 

$

0.76

 

$

0.84

 

$

1.36

 

$

1.94

 

Diluted

 

0.63

 

 

0.73

 

 

0.69

 

 

0.76

 

 

0.84

 

 

1.36

 

 

1.94

 

Dividends Paid

 

0.30

 

 

0.30

 

 

0.28

 

 

0.27

 

 

0.26

 

 

0.60

 

 

0.50

 

Market Value:
High

$

30.13

 

$

32.52

 

$

34.00

 

$

32.72

 

$

33.97

 

$

32.52

 

$

35.90

 

Low

 

25.31

 

 

28.58

 

 

28.75

 

 

25.80

 

 

27.76

 

 

25.31

 

 

22.23

 

Close

 

25.35

 

 

30.33

 

 

30.91

 

 

31.84

 

 

28.41

 

 

30.91

 

 

28.41

 

Common Book Value

 

25.35

 

 

26.48

 

 

28.13

 

 

27.90

 

 

27.64

 

Tangible Common Book Value (2)

 

15.80

 

 

16.92

 

 

18.73

 

 

18.61

 

 

18.36

 

Shares outstanding, end of period (000s)

 

35,555

 

 

35,621

 

 

36,384

 

 

36,978

 

 

37,178

 

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

 

3.36

%

 

3.44

%

 

3.41

%

 

3.38

%

 

3.34

%

 

3.40

%

 

3.39

%

Return on average assets

 

1.16

%

 

1.42

%

 

1.34

%

 

1.49

%

 

1.67

%

 

1.29

%

 

1.96

%

Return on average equity

 

9.73

%

 

10.34

%

 

9.70

%

 

11.03

%

 

12.50

%

 

10.21

%

 

14.75

%

Return on average tangible equity

 

15.41

%

 

15.44

%

 

14.49

%

 

16.65

%

 

19.05

%

 

15.81

%

 

22.70

%

Efficiency ratio (3)

 

52.23

%

 

54.60

%

 

56.14

%

 

51.85

%

 

51.85

%

 

53.42

%

 

49.75

%

Effective tax rate

 

19.59

%

 

18.97

%

 

19.10

%

 

17.76

%

 

20.96

%

 

19.25

%

 

20.16

%

Common dividend payout ratio

 

47.62

%

 

41.10

%

 

40.58

%

 

35.53

%

 

30.95

%

 

44.12

%

 

25.77

%

 
(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

 

Six Months Ended

6/30/22

3/31/22

12/31/21

9/30/21

6/30/21

 

6/30/22

6/30/21

Average Balances
Interest-earning assets:
Loans receivable (1)

$

5,667,853

 

$

5,382,825

 

$

5,356,113

 

$

5,416,696

 

$

5,495,782

 

$

5,526,127

 

$

5,562,379

 

Securities

 

1,288,073

 

 

1,250,321

 

 

1,245,096

 

 

1,273,148

 

 

1,193,363

 

 

1,269,301

 

 

1,009,695

 

Interest Bearing Deposits

 

76,401

 

 

109,757

 

 

123,456

 

 

71,276

 

 

106,025

 

 

92,987

 

 

125,732

 

FHLB stock

 

19,334

 

 

11,959

 

 

11,585

 

 

11,901

 

 

11,105

 

 

15,667

 

 

11,542

 

Total interest-earning assets

 

7,051,661

 

 

6,754,862

 

 

6,736,250

 

 

6,773,021

 

 

6,806,275

 

 

6,904,082

 

 

6,709,348

 

Non-interest-earning assets

 

690,889

 

 

786,552

 

 

774,147

 

 

756,079

 

 

743,256

 

 

722,806

 

 

735,443

 

Total assets

$

7,742,550

 

$

7,541,414

 

$

7,510,397

 

$

7,529,100

 

$

7,549,531

 

$

7,626,888

 

$

7,444,791

 

Deposits and Interest-bearing liabilities:
Interest bearing deposits

$

4,614,223

 

$

4,600,801

 

$

4,609,064

 

$

4,649,462

 

$

4,640,196

 

$

4,607,549

 

$

4,593,493

 

FHLB advances and other

 

234,945

 

 

16,278

 

 

-

 

 

20,098

 

 

30,165

 

 

126,215

 

 

15,166

 

Subordinated debentures

 

85,020

 

 

84,988

 

 

84,957

 

 

84,924

 

 

84,893

 

 

85,004

 

 

84,881

 

Notes payable

 

428

 

 

-

 

 

-

 

 

204

 

 

-

 

 

215

 

 

-

 

Total interest-bearing liabilities

 

4,934,616

 

 

4,702,067

 

 

4,694,021

 

 

4,754,688

 

 

4,755,254

 

 

4,818,983

 

 

4,693,540

 

Non-interest bearing deposits

 

1,771,634

 

 

1,713,416

 

 

1,692,320

 

 

1,667,767

 

 

1,699,477

 

 

1,742,686

 

 

1,671,901

 

Total including non-interest-bearing deposits

 

6,706,250

 

 

6,415,483

 

 

6,386,341

 

 

6,422,455

 

 

6,454,731

 

 

6,561,669

 

 

6,365,441

 

Other non-interest-bearing liabilities

 

114,453

 

 

92,115

 

 

88,339

 

 

86,439

 

 

88,043

 

 

103,346

 

 

89,550

 

Total liabilities

 

6,820,703

 

 

6,507,598

 

 

6,474,680

 

 

6,508,894

 

 

6,542,774

 

 

6,665,015

 

 

6,454,991

 

Stockholders' equity

 

921,847

 

 

1,033,816

 

 

1,035,717

 

 

1,020,206

 

 

1,006,757

 

 

961,873

 

 

989,800

 

Total liabilities and stockholders' equity

$

7,742,550

 

$

7,541,414

 

$

7,510,397

 

$

7,529,100

 

$

7,549,531

 

$

7,626,888

 

$

7,444,791

 

Average interest-earning assets to interest-bearing liabilities

 

143

%

 

144

%

 

144

%

 

142

%

 

143

%

 

143

%

 

143

%

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

$

56,573

 

$

55,248

 

$

55,013

 

$

55,444

 

$

55,786

 

$

111,821

 

$

113,366

 

Securities (2)

 

6,416

 

 

5,701

 

 

5,612

 

 

5,580

 

 

5,250

 

 

12,116

 

 

9,153

 

Interest Bearing Deposits

 

120

 

 

46

 

 

56

 

 

33

 

 

42

 

 

233

 

 

108

 

FHLB stock

 

174

 

 

59

 

 

59

 

 

60

 

 

56

 

 

166

 

 

115

 

Total interest-earning assets

 

63,283

 

 

61,054

 

 

60,740

 

 

61,117

 

 

61,134

 

 

124,336

 

 

122,742

 

Deposits and Interest-bearing liabilities:
Interest bearing deposits

$

2,671

 

$

2,222

 

$

2,615

 

$

3,144

 

$

3,559

 

$

4,893

 

$

7,723

 

FHLB advances and other

 

527

 

 

13

 

 

-

 

 

11

 

 

12

 

 

540

 

 

12

 

Subordinated debentures

 

763

 

 

696

 

 

673

 

 

671

 

 

674

 

 

1,459

 

 

1,369

 

Notes payable

 

1

 

 

-

 

 

-

 

 

-

 

 

-

 

 

1

 

 

-

 

Total interest-bearing liabilities

 

3,962

 

 

2,931

 

 

3,288

 

 

3,826

 

 

4,245

 

 

6,893

 

 

9,104

 

Non-interest bearing deposits

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Total including non-interest-bearing deposits

 

3,962

 

 

2,931

 

 

3,288

 

 

3,826

 

 

4,245

 

 

6,893

 

 

9,104

 

Net interest income

$

59,321

 

$

58,123

 

$

57,452

 

$

57,291

 

$

56,889

 

$

117,443

 

$

113,638

 

Less: PPP income

 

(160

)

 

(3,641

)

 

(2,686

)

 

(2,887

)

 

(3,950

)

 

(3,801

)

 

(8,971

)

Less: Acquisition marks accretion

 

(706

)

 

(737

)

 

(1,595

)

 

(879

)

 

(1,641

)

 

(1,443

)

 

(3,395

)

Core net interest income

$

58,455

 

$

53,745

 

$

53,171

 

$

53,525

 

$

51,298

 

$

112,199

 

$

101,272

 

 
Average Rates (3)
Interest-earning assets:
Loans receivable

 

3.99

%

 

4.11

%

 

4.11

%

 

4.09

%

 

4.06

%

 

4.05

%

 

4.08

%

Securities (4)

 

1.99

%

 

1.82

%

 

1.80

%

 

1.75

%

 

1.76

%

 

1.91

%

 

1.81

%

Interest Bearing Deposits

 

0.63

%

 

0.17

%

 

0.18

%

 

0.19

%

 

0.16

%

 

0.50

%

 

0.17

%

FHLB stock

 

3.60

%

 

1.97

%

 

2.04

%

 

2.02

%

 

2.02

%

 

2.12

%

 

1.99

%

Total interest-earning assets

 

3.59

%

 

3.62

%

 

3.61

%

 

3.61

%

 

3.59

%

 

3.60

%

 

3.66

%

Deposits and Interest-bearing liabilities:
Interest bearing deposits

 

0.23

%

 

0.19

%

 

0.23

%

 

0.27

%

 

0.31

%

 

0.21

%

 

0.34

%

FHLB advances and other

 

0.90

%

 

0.32

%

 

0.00

%

 

0.22

%

 

0.16

%

 

0.86

%

 

0.16

%

Subordinated debentures

 

3.59

%

 

3.28

%

 

3.17

%

 

3.16

%

 

3.18

%

 

3.43

%

 

3.23

%

Notes payable

 

0.93

%

 

-

 

 

-

 

 

0.75

%

 

-

 

 

0.93

%

 

-

 

Total interest-bearing liabilities

 

0.32

%

 

0.25

%

 

0.28

%

 

0.32

%

 

0.36

%

 

0.29

%

 

0.39

%

Non-interest bearing deposits

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Total including non-interest-bearing deposits

 

0.24

%

 

0.18

%

 

0.21

%

 

0.24

%

 

0.26

%

 

0.21

%

 

0.29

%

Net interest spread

 

3.27

%

 

3.37

%

 

3.33

%

 

3.29

%

 

3.23

%

 

3.31

%

 

3.27

%

Net interest margin (5)

 

3.36

%

 

3.44

%

 

3.41

%

 

3.38

%

 

3.34

%

 

3.40

%

 

3.39

%

Core net interest margin (5)

 

3.32

%

 

3.20

%

 

3.21

%

 

3.27

%

 

3.20

%

 

3.26

%

 

3.22

%

(1) Includes average PPP loans of:

$

12,966

 

$

32,853

 

$

101,804

 

$

219,366

 

$

378,545

 

$

22,855

 

$

406,826

 

(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.
Selected Quarterly Information
 
(dollars in thousands)

2Q22

1Q22

4Q21

3Q21

2Q21

Loan Portfolio Composition
One to four family residential real estate

$

1,382,202

 

$

1,222,057

 

$

1,167,466

 

$

1,129,877

 

$

1,138,433

 

Construction

 

1,093,695

 

 

883,712

 

 

862,815

 

 

885,586

 

 

830,822

 

Commercial real estate

 

2,655,730

 

 

2,495,469

 

 

2,450,349

 

 

2,389,759

 

 

2,405,653

 

Commercial

 

991,803

 

 

910,553

 

 

895,638

 

 

952,729

 

 

1,051,972

 

Home equity and improvement

 

266,144

 

 

261,176

 

 

264,354

 

 

264,140

 

 

261,842

 

Consumer finance

 

180,539

 

 

132,294

 

 

126,417

 

 

125,163

 

 

118,526

 

Total loans

 

6,570,113

 

 

5,905,261

 

 

5,767,039

 

 

5,747,254

 

 

5,807,248

 

Less:
Undisbursed loan funds

 

688,849

 

 

525,545

 

 

477,890

 

 

481,434

 

 

458,156

 

Deferred loan origination fees

 

(9,559

)

 

(8,615

)

 

(7,019

)

 

(3,746

)

 

692

 

Allowance for credit losses - loans

 

67,074

 

 

67,195

 

 

66,468

 

 

73,217

 

 

71,367

 

Net Loans

$

5,823,749

 

$

5,321,136

 

$

5,229,700

 

$

5,196,349

 

$

5,277,033

 

Loans held for sale

$

145,092

 

$

153,498

 

$

162,947

 

$

178,490

 

$

199,070

 

 
PPP loans

$

4,561

 

$

18,660

 

$

58,906

 

$

143,949

 

$

287,229

 

Core commercial loans (1)

 

3,962,562

 

 

3,647,783

 

 

3,550,385

 

 

3,461,893

 

 

3,424,698

 

Core residential loans (1)

 

1,612,550

 

 

1,473,301

 

 

1,452,034

 

 

1,449,165

 

 

1,455,867

 

Core loans (1)

 

5,886,262

 

 

5,369,671

 

 

5,237,262

 

 

5,125,617

 

 

5,061,171

 

 
Allowance for credit losses - loans
Beginning allowance

$

67,195

 

$

66,468

 

$

73,217

 

$

71,367

 

$

74,754

 

Provision (benefit) for credit losses - loans

 

5,151

 

 

626

 

 

2,816

 

 

1,594

 

 

(3,631

)

Net recoveries (charge-offs)

 

(5,272

)

 

101

 

 

(9,565

)

 

256

 

 

244

 

Ending allowance

$

67,074

 

$

67,195

 

$

66,468

 

$

73,217

 

$

71,367

 

 
Credit Quality
Total non-performing loans (2)

$

34,735

 

$

47,298

 

$

48,014

 

$

59,865

 

$

41,296

 

Real estate owned (REO)

 

462

 

 

253

 

 

171

 

 

261

 

 

45

 

Total non-performing assets (3)

$

35,197

 

$

47,551

 

$

48,185

 

$

60,126

 

$

41,341

 

Net charge-offs (recoveries)

 

5,272

 

 

(101

)

 

9,565

 

 

(256

)

 

(244

)

 
Restructured loans, accruing (4)

 

5,899

 

 

6,287

 

 

7,768

 

 

6,503

 

 

5,939

 

 
Allowance for credit losses - loans / loans

 

1.14

%

 

1.25

%

 

1.26

%

 

1.39

%

 

1.33

%

Allowance for credit losses - loans / non-performing assets

 

190.57

%

 

141.31

%

 

137.94

%

 

121.77

%

 

172.63

%

Allowance for credit losses - loans / non-performing loans

 

193.10

%

 

142.07

%

 

138.43

%

 

122.30

%

 

172.82

%

Non-performing assets / loans plus REO

 

0.60

%

 

0.88

%

 

0.91

%

 

1.14

%

 

0.77

%

Non-performing assets / total assets

 

0.44

%

 

0.63

%

 

0.64

%

 

0.81

%

 

0.54

%

Net charge-offs / average loans (annualized)

 

0.37

%

 

-0.01

%

 

0.71

%

 

-0.02

%

 

-0.02

%

Net charge-offs / average loans LTM

 

0.27

%

 

0.17

%

 

0.16

%

 

0.00

%

 

0.06

%

 
Deposit Balances
Non-interest-bearing demand deposits

$

1,786,516

 

$

1,733,157

 

$

1,724,772

 

$

1,618,769

 

$

1,649,664

 

Interest-bearing demand deposits and money market

 

3,106,306

 

 

3,029,260

 

 

2,952,705

 

 

2,962,032

 

 

2,890,769

 

Savings deposits

 

832,859

 

 

830,143

 

 

804,451

 

 

786,929

 

 

777,862

 

Retail time deposits less than $250

 

532,836

 

 

586,967

 

 

636,477

 

 

692,224

 

 

720,317

 

Retail time deposits greater than $250

 

257,827

 

 

137,708

 

 

163,646

 

 

188,704

 

 

252,847

 

Total deposits

$

6,516,344

 

$

6,317,235

 

$

6,282,051

 

$

6,248,658

 

$

6,291,459

 

 
(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) Non-performing loans consist of non-accrual loans.
(3) Non-performing assets are non-performing loans plus real estate and other assets acquired by foreclosure or deed-in-lieu thereof.
(4) Accruing restructured loans are loans with known credit problems that are not contractually past due and therefore are not included in non-performing loans.
Premier Financial Corp.
 
Loan Delinquency Information
(dollars in thousands) Total Balance Current 30 to 89 days

past due
% of

Total
Non Accrual

Loans
% of

Total
 
June 30, 2022
One to four family residential real estate

$

1,382,202

$

1,367,037

$

7,176

0.5

%

$

7,989

0.6

%

Construction

 

1,093,695

 

 

1,093,695

 

 

-

 

0.0

%

 

-

 

0.0

%

Commercial real estate

 

2,655,730

 

 

2,641,216

 

 

1

 

0.0

%

 

14,513

 

0.5

%

Commercial

 

991,803

 

 

984,065

 

 

-

 

0.0

%

 

7,738

 

0.8

%

Home equity and improvement

 

266,144

 

 

261,576

 

 

1,943

 

0.7

%

 

2,625

 

1.0

%

Consumer finance

 

180,539

 

 

176,608

 

 

2,061

 

1.1

%

 

1,870

 

1.0

%

Total loans

$

6,570,113

 

$

6,524,197

 

$

11,181

 

0.2

%

$

34,735

 

0.5

%

 
March 31, 2022
One to four family residential real estate

$

1,222,057

 

$

1,206,560

 

$

3,843

 

0.3

%

$

11,654

 

1.0

%

Construction

 

883,712

 

 

883,712

 

 

-

 

0.0

%

 

-

 

0.0

%

Commercial real estate

 

2,495,469

 

 

2,480,656

 

 

181

 

0.0

%

 

14,632

 

0.6

%

Commercial

 

910,553

 

 

894,923

 

 

18

 

0.0

%

 

15,612

 

1.7

%

Home equity and improvement

 

261,176

 

 

256,667

 

 

1,333

 

0.5

%

 

3,176

 

1.2

%

Consumer finance

 

132,294

 

 

127,856

 

 

2,214

 

1.7

%

 

2,224

 

1.7

%

Total loans

$

5,905,261

 

$

5,850,374

 

$

7,589

 

0.1

%

$

47,298

 

0.8

%

 
June 30, 2021
One to four family residential real estate

$

1,138,433

 

$

1,122,060

 

$

5,757

 

0.5

%

$

10,616

 

0.9

%

Construction

 

830,822

 

 

830,242

 

 

580

 

0.1

%

 

-

 

0.0

%

Commercial real estate

 

2,405,653

 

 

2,388,082

 

 

53

 

0.0

%

 

17,518

 

0.7

%

Commercial

 

1,051,972

 

 

1,044,265

 

 

-

 

0.0

%

 

7,707

 

0.7

%

Home equity and improvement

 

261,842

 

 

256,259

 

 

1,955

 

0.7

%

 

3,628

 

1.4

%

Consumer finance

 

118,526

 

 

115,169

 

 

1,530

 

1.3

%

 

1,827

 

1.5

%

Total loans

$

5,807,248

 

$

5,756,077

 

$

9,875

 

0.2

%

$

41,296

 

0.7

%

 
Loan Risk Ratings Information
(dollars in thousands) Total Balance Pass Rated Special Mention % of

Total
Classified % of

Total
 
June 30, 2022
One to four family residential real estate

$

1,370,167

 

$

1,361,875

 

$

1,244

 

0.1

%

$

7,048

 

0.5

%

Construction

 

1,093,695

 

 

1,093,695

 

 

-

 

0.0

%

 

-

 

0.0

%

Commercial real estate

 

2,654,003

 

 

2,551,971

 

 

77,224

 

2.9

%

 

24,808

 

0.9

%

Commercial

 

984,972

 

 

956,229

 

 

21,428

 

2.2

%

 

7,315

 

0.7

%

Home equity and improvement

 

263,330

 

 

261,530

 

 

-

 

0.0

%

 

1,800

 

0.7

%

Consumer finance

 

180,183

 

 

178,346

 

 

-

 

0.0

%

 

1,837

 

1.0

%

PCD loans

 

23,763

 

 

17,632

 

 

95

 

0.4

%

 

6,036

 

25.4

%

Total loans

$

6,570,113

 

$

6,421,278

 

$

99,991

 

1.5

%

$

48,844

 

0.7

%

 
March 31, 2022
One to four family residential real estate

$

1,209,537

 

$

1,198,311

 

$

1,295

 

0.1

%

$

9,931

 

0.8

%

Construction

 

883,712

 

 

883,712

 

 

-

 

0.0

%

 

-

 

0.0

%

Commercial real estate

 

2,492,324

 

 

2,373,111

 

 

93,550

 

3.8

%

 

25,663

 

1.0

%

Commercial

 

901,957

 

 

869,615

 

 

20,558

 

2.3

%

 

11,784

 

1.3

%

Home equity and improvement

 

258,041

 

 

255,883

 

 

-

 

0.0

%

 

2,158

 

0.8

%

Consumer finance

 

131,846

 

 

129,747

 

 

-

 

0.0

%

 

2,099

 

1.6

%

PCD loans

 

27,844

 

 

19,110

 

 

98

 

0.4

%

 

8,636

 

31.0

%

Total loans

$

5,905,261

 

$

5,729,489

 

$

115,501

 

2.0

%

$

60,271

 

1.0

%

 
June 30, 2021
One to four family residential real estate

$

1,125,097

 

$

1,114,219

 

$

1,117

 

0.1

%

$

9,761

 

0.9

%

Construction

 

830,822

 

 

815,429

 

 

15,393

 

1.9

%

 

-

 

0.0

%

Commercial real estate

 

2,393,591

 

 

2,217,858

 

 

132,099

 

5.5

%

 

43,634

 

1.8

%

Commercial

 

1,038,059

 

 

991,021

 

 

24,898

 

2.4

%

 

22,140

 

2.1

%

Home equity and improvement

 

257,618

 

 

255,497

 

 

-

 

0.0

%

 

2,121

 

0.8

%

Consumer finance

 

117,764

 

 

116,137

 

 

-

 

0.0

%

 

1,627

 

1.4

%

PCD loans

 

44,297

 

 

21,328

 

 

905

 

2.0

%

 

22,064

 

49.8

%

Total loans

$

5,807,248

 

$

5,531,489

 

$

174,412

 

3.0

%

$

101,347

 

1.7

%

Premier Financial Corp.
(dollars in thousands)

As of and for the three months ended

 

Six months ended

Mortgage Banking Summary

6/30/22

3/31/22

12/31/21

9/30/21

6/30/21

 

6/30/22

6/30/21

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

$

1,166

 

$

2,543

 

$

2,774

 

$

5,353

 

$

2,670

 

$

3,710

 

$

8,310

 

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

 

1,862

 

 

1,879

 

 

1,909

 

 

1,861

 

 

1,887

 

 

3,741

 

 

3,805

 

Amortization of mortgage servicing rights

 

(1,375

)

 

(1,403

)

 

(1,774

)

 

(1,822

)

 

(1,953

)

 

(2,778

)

 

(4,297

)

Mortgage servicing rights valuation adjustments

 

295

 

 

1,233

 

 

151

 

 

783

 

 

(447

)

 

1,527

 

 

4,873

 

 

782

 

 

1,709

 

 

286

 

 

822

 

 

(513

)

 

2,490

 

 

4,381

 

Total revenue from sale/servicing of mortgage loans

$

1,948

 

$

4,252

 

$

3,060

 

$

6,175

 

$

2,157

 

$

6,200

 

$

12,691

 

 
Mortgage servicing rights:
Balance at beginning of period

$

22,189

 

$

22,244

 

$

21,963

 

$

21,682

 

$

21,696

 

$

22,244

 

$

21,666

 

Loans sold, servicing retained

 

1,058

 

 

1,348

 

 

2,056

 

 

2,103

 

 

1,938

 

 

2,407

 

 

4,312

 

Mortgage servicing rights acquired

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Amortization

 

(1,375

)

 

(1,403

)

 

(1,774

)

 

(1,822

)

 

(1,953

)

 

(2,778

)

 

(4,297

)

Balance at end of period

 

21,872

 

 

22,189

 

 

22,245

 

 

21,963

 

 

21,681

 

 

21,873

 

 

21,681

 

Valuation allowance:
Balance at beginning of period

 

(1,474

)

 

(2,707

)

 

(2,858

)

 

(3,641

)

 

(3,193

)

 

(2,707

)

 

(8,513

)

Impairment recovery (charges)

 

295

 

 

1,233

 

 

151

 

 

783

 

 

(447

)

 

1,527

 

 

4,873

 

Balance at end of period

 

(1,179

)

 

(1,474

)

 

(2,707

)

 

(2,858

)

 

(3,640

)

 

(1,180

)

 

(3,640

)

Net carrying value at end of period

$

20,693

 

$

20,715

 

$

19,538

 

$

19,105

 

$

18,041

 

$

20,693

 

$

18,041

 

 
Allowance Summary
Total loans

$

5,890,823

 

$

5,388,331

 

$

5,296,168

 

$

5,269,566

 

$

5,348,400

 

Less: PPP loans

 

(4,561

)

 

(18,660

)

 

(58,906

)

 

(143,949

)

 

(287,229

)

Total loans ex PPP

$

5,886,262

 

$

5,369,671

 

$

5,237,262

 

$

5,125,617

 

$

5,061,171

 

 
Allowance for credit losses (ACL)

$

67,074

 

$

67,195

 

$

66,468

 

$

73,217

 

$

71,367

 

Add: Unaccreted purchase accounting marks

 

3,924

 

 

4,652

 

 

5,418

 

 

7,109

 

 

8,003

 

Adjusted ACL

$

70,998

 

$

71,847

 

$

71,886

 

$

80,326

 

$

79,370

 

ACL/Loans

 

1.14

%

 

1.25

%

 

1.26

%

 

1.39

%

 

1.33

%

Adjusted ACL/Loans ex PPP

 

1.21

%

 

1.34

%

 

1.37

%

 

1.57

%

 

1.57

%

 

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