Premier Financial Corp. Announces Full Year 2023 Results

January 23, 2024

Declared dividend of $0.31 per share

Fourth Quarter 2023 Highlights

  • Deposit growth of $77 million (up 4% annualized), including $128 million for core customer deposits excluding brokered (up 8% annualized)
  • Loan growth of $43 million (up 3% annualized), including $63 million for commercial loan (up 6% annualized)
  • Expenses declined $0.2 million (down 2% annualized) from third quarter 2023
  • Non-performing assets decreased $4 million (or 10%) from prior quarter and six basis points to 0.41% of total assets
  • Equity up $56 million or $1.57 per share (both up 24% annualized) with tangible equity up $57 million or $1.60 per share (both up 37% annualized) to $18.69 per share and tangible equity ratio up to 8.03%

Full Year 2023 Highlights

  • Completed sale of insurance agency at a significant gain that strengthened capital without diluting future earnings
  • Deposit growth of $236 million (up 3%), including $38 million for core customer deposits excluding brokered (up 1%)
  • Loan growth of $279 million (up 4%) including $179 million for commercial loans (up 4%)
  • Equity up $88 million or $2.37 per share (both up 10%) with tangible equity up $117 million or $3.22 per share (both up 21%) and tangible equity ratio up 1.25%
  • Launched new digital banking platform to improve clients’ banking experience in October

 

Premier Financial Corp. (Nasdaq: PFC) (“Premier” or the “Company”) announced today 2023 fourth quarter and full year results. Net income for the fourth quarter of 2023 was $20.1 million, or $0.56 per diluted common share, compared to $25.3 million, or $0.71 per diluted common share, for the fourth quarter of 2022. Net income for 2023 was $111.3 million, or $3.11 per diluted common share, compared to $102.2 million, or $2.85 per diluted common share, for 2022. Full year 2023 results include the impact of the disposition of the Company’s insurance agency, First Insurance Group (“FIG”), for a net gain on sale after transaction costs of $32.6 million pre-tax or $0.67 per diluted share after-tax. Excluding the impact of this transaction, 2023 earnings would be $2.44 per diluted share.

“In the fourth quarter, we saw a continuation of performance improvement on many topics outlined in our third quarter release,” said Gary Small, President and CEO of Premier. “Positive elements include purposefully moderate loan growth, excellent deposit growth, strong wealth management revenue growth, deliberate cost containment, and a decline in non-performing assets. Total loans grew 4.3% in 2023 with full year commercial loan growth totaling 4.2%. We remain focused on servicing existing clients and are well positioned to expand our new business outreach efforts in the upcoming year. We are pleased with our trend in customer deposit gathering over the past two quarters that delivered growth of $220 million, or 6.7% annualized growth. Over the same period, non-interest bearing deposit balances stabilized with annualized growth of 2.3%.”

“Net interest margin management continues to remain our top financial priority,” Small continued. “While we reduced our dependency on wholesale funds by $109 million during the fourth quarter, the impact of continued deposit mix migration and persistent high yield alternatives in the market are reflected in our higher cost of funds for the quarter. I will also note the fourth quarter mortgage banking income was affected by the downward movement in 10 year Treasury yields during the quarter, triggering unfavorable valuation marks on the mortgage servicing rights asset and hedges on the in-process mortgage construction book. Credit metrics remained steady with non-performing asset levels slightly lower for the quarter. Consumer and residential mortgage delinquencies were up but well in check versus historical performance.”

“As we enter 2024, we anticipate continued moderate earning assets growth and a relentless focus on deposit growth resulting in low-to-moderate year-over-year net interest income growth,” added Small. “Strong expense management and solid credit performance round out the story.”

Quarterly results

Capital, deposits and liquidity

Regulatory ratios all improved during the fourth quarter of 2023, including CET1 of 11.70%, Tier 1 of 12.20% and Total Capital of 14.04%. All of these ratios also exceed well-capitalized guidelines pro forma for including accumulated other comprehensive income (“AOCI”), including CET1 of 9.53%, Tier 1 of 10.02% and Total Capital of 11.87%.

Total deposits increased 4.4% annualized, or $77.4 million, during the fourth quarter of 2023, due to a $127.6 million increase in customer deposits (up 7.7% annualized), offset partly by a decrease of $50.2 million in brokered deposits. Total average interest-bearing deposit costs increased 29 basis points to 2.83% for the fourth quarter of 2023. This increase was primarily due to new customer acquisitions and the migration of customers from non-interest bearing deposits into interest-bearing deposits, including higher cost time deposits, as customers continue to seek better yields. Total average customer deposit costs including non-interest and excluding brokered deposits and acquisition marks were 2.09% during the month of December, representing a cumulative beta of 37% compared to the change in the monthly average effective Federal Funds rate that increased 525 basis points to 5.33% since December 2021, as reported by the Federal Reserve Economic Data.

At December 31, 2023, uninsured deposits were 33.1% of total deposits, or 18.9% adjusting for collateralized deposits, other insured deposits and internal company accounts. Total quantifiable liquidity sources totaled $2.97 billion, or 218.3% of adjusted uninsured deposits.

Net interest income and margin

Net interest income of $52.6 million on a tax equivalent (“TE”) basis in the fourth quarter of 2023 was down 3.2% from $54.3 million in the third quarter of 2023 and down 16.2% from $62.8 million in the fourth quarter of 2022. The TE net interest margin of 2.65% in the fourth quarter of 2023 decreased eight basis points from 2.73% in the third quarter of 2023 and 63 basis points from 3.28% in the fourth quarter of 2022. Results for all periods include the impact of the Paycheck Protection Program (“PPP”) as well as acquisition marks and related accretion. Fourth quarter 2023 includes $108 thousand of accretion in interest income, $144 thousand of accretion in interest expense, and $5 thousand of interest income on average balances of $495 thousand for PPP.

Excluding the impact of acquisition marks accretion and PPP loans, core net interest income was $52.3 million, down 3.1% from $54.0 million in the third quarter of 2023 and down 15.9% from $62.2 million in the fourth quarter of 2022. Additionally, the core net interest margin was 2.64% for the fourth quarter of 2023, down seven basis points from 2.71% for the third quarter of 2023 and 61 basis points from 3.25% for the fourth quarter of 2022. These results are positively impacted by the combination of loan growth and higher loan yields, which were 5.21% for the fourth quarter of 2023 compared to 5.12% in the third quarter of 2023 and 4.54% in the fourth quarter of 2022. Excluding the impact of PPP, balance sheet hedges and acquisition marks accretion, loan yields were 5.24% in December 2023, up 149 basis points since December 2021, which represents a cumulative beta of 28% compared to the change in the monthly average effective Federal Funds rate for the same period.

Total earning asset yields in the fourth quarter of 2023 were 4.86%, up nine basis points from the third quarter of 2023 and up 63 basis points from the fourth quarter of 2022. The increases are largely due to loan growth and higher average yields for loans and securities. Excluding the impact of PPP, balance sheet hedges and acquisition marks accretion, earning asset yields were 4.91% in December 2023, up 157 basis points since December 2021, which represents a cumulative beta of 30% compared to the change in the monthly average effective Federal Funds rate for the same period. The cost of funds in the fourth quarter of 2023 was 2.35%, up 18 basis points from the third quarter of 2023 and up 135 basis points from the fourth quarter of 2022. The increases are largely due to the higher average deposit costs discussed above. Excluding the impact of balance sheet hedges and acquisition marks accretion, cost of funds were 2.40% in December 2023 for an increase of 219 basis points since December 2021, which represents a cumulative beta of 42% compared to the change in the monthly average effective Federal Funds rate for the same period.

“The decline in net interest margin experienced during the fourth quarter in part reflected the impact of expanded ‘new money’ deposit attraction promotions introduced in select markets across the network,” said Small. “The programs are short in duration and designed as a household gathering catalyst for these specific locations. The successful effort contributed to the 7.7% annualized customer deposit growth achieved during the quarter.”

Non-interest income

Total non-interest income in the fourth quarter of 2023 of $11.8 million was down 11% from $13.3 million in the third quarter of 2023, but up 10.7% from $10.7 million in the fourth quarter of 2022, excluding insurance commissions, primarily due to fluctuations in mortgage banking and gains/losses on securities. Mortgage banking income decreased $2.5 million on a linked quarter basis but increased $1.1 million year-over-year, primarily as a result of fluctuations in gain margins.

Security gains were $675 thousand in the fourth quarter of 2023, compared to gains of $256 thousand in the third quarter of 2023 and $1.2 million in the fourth quarter of 2022, primarily due to valuation changes on equity securities. Service fees in the fourth quarter of 2023 were $6.8 million, a 2.7% decrease from $6.9 million in the third quarter of 2023, but a 1.9% increase from $6.6 million in the fourth quarter of 2022. This change was primarily due to fluctuations in loan fees, including commercial customer swap activity. Due to the insurance agency sale in the second quarter of 2023, there were no insurance commissions in the fourth quarter of 2023, compared to $3.6 million in the fourth quarter of 2022. Wealth management income of $1.8 million in the fourth quarter of 2023 was 18.7% higher than $1.5 million in the third quarter of 2023 and 13.2% higher than $1.6 million in the fourth quarter of 2022. BOLI income of $1.5 million in the fourth quarter of 2023 included $453 thousand of claim gains, compared to $1.0 million in each of the third quarter of 2023 and fourth quarter of 2022, neither of which included any claim gains.

Non-interest expenses

Non-interest expenses in the fourth quarter of 2023 were $37.9 million, a 0.4% decrease from $38.1 million in the third quarter of 2023, and an 11.9% decrease from $43.0 million in the fourth quarter of 2022. Compensation and benefits were $21.0 million in the fourth quarter of 2023, compared to $21.8 million in the third quarter of 2023 and $25.0 million in the fourth quarter of 2022. The linked quarter decrease was primarily due to cost saving initiatives that began during the second quarter of 2023. The year-over-year decrease was primarily due to the insurance agency sale, partially offset by costs related to higher staffing levels for our 2022 growth initiatives and higher base compensation, including 2022 mid-year adjustments and 2023 annual adjustments. Data processing costs were $4.7 million in the fourth quarter of 2023, compared to $4.0 million in the third quarter of 2023 and $3.9 million in the fourth quarter of 2022, with the increases primarily due to the new digital platform launched in October 2023. All other non-interest expenses increased only a net $23 thousand on a linked quarter basis and decreased a net $1.9 million on a year-over-year basis due to the insurance agency sale and cost saving initiatives. The efficiency ratio for the fourth quarter of 2023 was 59.5% compared to 56.5% in the third quarter of 2023 and 56.8% in the fourth quarter of 2022.

“Expense containment remains a high priority for us as we continue to manage the net interest margin challenges,” said Paul Nungester, CFO of Premier. “The successful implementation of cost saving initiatives enabled us to reduce our ratio of expenses to average assets to 1.76% for the last two quarters of 2023, representing a 30 basis point improvement from the fourth quarter of 2022.”

Credit quality

Non-performing assets totaled $35.7 million, or 0.41% of assets, at December 31, 2023, a decrease from $39.9 million at September 30, 2023, but an increase from $34.4 million at December 31, 2022. Loan delinquencies increased to $20.9 million, or 0.30% of loans, at December 31, 2023, from $17.2 million at September 30, 2023, and from $18.3 million at December 31, 2022. Classified loans totaled $69.7 million, or 0.99% of loans, as of December 31, 2023, an increase from $63.5 million at September 30, 2023, and from $43.8 million at December 31, 2022.

The 2023 fourth quarter results include net charge-offs of $2.1 million and a total provision expense of $1.8 million, compared with net loan charge-offs of $830 thousand and a total provision expense of $2.8 million for the same period in 2022. The allowance for credit losses as a percentage of total loans was 1.14% at December 31, 2023, compared with 1.14% at September 30, 2023, and 1.13% at December 31, 2022. The allowance for credit losses as a percentage of total loans excluding PPP and including unaccreted acquisition marks was 1.15% at December 31, 2023, compared with 1.17% at September 30, 2023, and December 31, 2022. The continued economic improvement following the 2020 pandemic-related downturn has resulted in a year-over-year decrease in the allowance percentages.

Full year results

For the year ended December 31, 2023, net income totaled $111.3 million, or $3.11 per diluted common share, compared to $102.2 million, or $2.85 per diluted common share for the year ended December 31, 2022. 2023 results include the impact of the insurance agency sale for a net gain on sale after transaction costs of $32.6 million pre-tax, or $0.67 per diluted share after-tax. Excluding the impact of this item, full year 2023 core net income was $87.1 million, or $2.44 per diluted share.

Net interest income of $217.4 million on a TE basis for 2023 was down 10.8% from $243.7 million for 2022. The TE net interest margin of 2.75% in 2023 decreased 62 basis points from 3.37% in 2022. Results for all periods include the impact of PPP as well as acquisition marks and related accretion. 2023 includes $583 thousand of accretion in interest income, $757 thousand of accretion in interest expense, and $20 thousand of interest income on average balances of $670 thousand for PPP. Excluding the impact of acquisition marks accretion and PPP loans, core net interest income was $216.0 million, down 9.0% from $237.3 million in 2022. Additionally, the core net interest margin was 2.73% for 2023, down 55 basis points from 3.28% for of 2022. These results are positively impacted by the combination of loan growth and higher loan yields, which were 4.96% for 2023 compared to 4.24% for 2022. The cost of funds in 2023 was 1.99%, up 148 basis points from 0.51% in 2022. The year-over-year increase is largely due to utilization of higher cost wholesale fundings in support of loan growth in excess of deposit growth during late 2022 and early 2023.

Excluding insurance commissions and the $36.3 million gain on the sale of the insurance agency, total non-interest income in 2023 of $45.7 million was down 0.5% from $45.9 million for 2022. Insurance commissions were $8.9 million in 2023, down from $16.2 million in 2022 due to the insurance agency sale on June 30, 2023. Mortgage banking income decreased $3.1 million year-over-year as a result of a $1.4 million decrease in gains primarily from lower production and margins, as well as a $69 thousand mortgage servicing rights (“MSR”) valuation loss in 2023 compared to a $2.0 million gain for 2022.

Security losses were $0.4 million in 2023, compared to a loss of $0.6 million, primarily due to decreased valuations on equity securities. The company also sold $24 million of available-for-sale (“AFS”) securities for a $37 thousand gain with average yields less than FHLB borrowing rates during 2023. Service fees in 2023 were $27.3 million, a 5.7% increase from $25.9 million in 2022, primarily due to fluctuations in loan fees including commercial customer swap activity and consumer activity for interchange and ATM/NSF charges. Wealth management income of $6.3 million in 2023 was up 8.5% from $5.8 million in 2022. Bank owned life insurance income of $5.0 million in 2023 increased from $3.9 million in 2022 with $0.9 million of claim gains in 2023 compared to none in 2022.

Excluding transaction costs for the insurance agency sale, non-interest expenses in 2023 were $159.6 million, down 3.0% from $164.5 million in 2022. Compensation and benefits were $92.6 million in 2023, compared to $97.4 million in 2022. The year-over-year decrease was primarily due to the insurance agency sale on June 30, 2023, and cost saving initiatives that began during the second quarter of 2023 partially offset by costs related to higher staffing levels from our 2022 growth initiatives and higher base compensation, including 2022 mid-year adjustments and 2023 annual adjustments. FDIC premiums increased $2.2 million on a year-over-year basis primarily due to higher rates and our 2022 growth initiatives. Data processing costs were $16.2 million in 2023, compared to $13.8 million in 2022 with the increase primarily due to year-over-year growth. All other non-interest expenses decreased a net $4.7 million on a year-over-year basis primarily due to cost saving initiatives. The efficiency ratio (excluding transaction costs and the insurance agency gain on sale) for 2023 of 58.6% worsened from 53.7% in 2022 due to lower revenues partly offset by cost saving initiatives that began during the second quarter of 2023.

Results for 2023 include net loan charge-offs of $4.0 million and a total provision expense of $5.2 million, compared with net loan charge-offs of $6.2 million and a total provision expense of $14.3 million for 2022. The provision expense for both years is primarily due to relative loan growth.

Total assets at $8.63 billion

Total assets at December 31, 2023, were $8.63 billion, compared to $8.56 billion at September 30, 2023, and $8.46 billion at December 31, 2022. Loans receivable were $6.74 billion at December 31, 2023, compared to $6.70 billion at September 30, 2023, and $6.46 billion at December 31, 2022. At December 31, 2023, loans receivable increased $278.8 million on a year-over-year basis, or 4.3%. Core commercial loans excluding PPP increased by $179.7 million from December 31, 2022, or 4.2%. Securities at December 31, 2023, were $0.95 billion, compared to $0.92 billion at September 30, 2023, and $1.05 billion at December 31, 2022. All securities are either AFS or trading and are reflected at fair value on the balance sheet. Also, at December 31, 2023, goodwill and other intangible assets totaled $307.8 million compared to $308.8 million at September 30, 2023, and $337.1 million at December 31, 2022, with the year-over-year decrease primarily due to the insurance agency sale.

Total non-brokered deposits at December 31, 2023, were $6.80 billion, compared with $6.67 billion at September 30, 2023, and $6.76 billion at December 31, 2022. At December 31, 2023, customer deposits increased $127.6 million on a linked quarter basis, or 7.7% annualized. Brokered deposits were $341.9 million at December 31, 2023, compared to $392.2 million at September 30, 2023 and $143.7 million at December 31, 2022.

Total stockholders’ equity was $975.6 million at December 31, 2023, compared to $919.6 million at September 30, 2023, and $887.7 million at December 31, 2022. The quarterly increase in stockholders’ equity was primarily due to an increase in AOCI, which included $37.7 million for a positive valuation adjustment on the AFS securities portfolio, plus net earnings after dividends. The year-over-year increase was primarily due to net earnings after dividends including the impact the insurance agency sale offset plus an increase in AOCI, which included $15.2 million for positive valuation adjustments on the AFS securities portfolio. At December 31, 2023, 1,199,634 common shares remained available for repurchase under the Company’s existing repurchase program.

“2023 was a successful year of strengthening capital amidst a challenging interest rate environment,” said Nungester. “Across-the-board we enhanced book equity, tangible equity and regulatory capital. Year-over-year ratio improvements include book equity/assets up 81 basis points to 11.31%, tangible equity/tangible assets up 125 basis points to 8.03% and total risk-based capital up 190 basis points to 14.04%.”

Dividend to be paid February 16

The Board of Directors declared a quarterly cash dividend of $0.31 per common share payable February 16, 2024, to shareholders of record at the close of business on February 9, 2024. The dividend represents an annual dividend of 5.2 percent based on the Premier common stock closing price on January 22, 2024. Premier has approximately 35,732,000 common shares outstanding.

Conference call

Premier will host a conference call at 10:00 a.m. ET on Wednesday, January 24, 2024, to discuss the earnings results and business trends. The conference call may be accessed by calling 1-833-470-1428 and using access code 540476. Internet access to the call is also available (in listen-only mode) at the following URL: https://events.q4inc.com/attendee/656800446. The webcast replay of the conference call will be available at www.PremierFinCorp.com for one year.

About Premier Financial Corp.

Premier Financial Corp. (Nasdaq: PFC), headquartered in Defiance, Ohio, is the holding company for Premier Bank. Premier Bank, headquartered in Youngstown, Ohio, operates 75 branches and 9 loan offices in Ohio, Michigan, Indiana and Pennsylvania and also serves clients through a team of wealth professionals dedicated to each community banking branch. For more information, visit the company’s website at PremierFinCorp.com.

Financial Statements and Highlights Follow

Safe Harbor Statement

This document may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These statements may include, but are not limited to, statements regarding projections, forecasts, goals and plans of Premier Financial Corp. and its management, future movements of interests, loan or deposit production levels, future credit quality ratios, future strength in the market area, and growth projections. These statements do not describe historical or current facts and may be identified by words such as “intend,” “intent,” “believe,” “expect,” “estimate,” “target,” “plan,” “anticipate,” or similar words or phrases, or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “may,” “can,” or similar verbs. There can be no assurances that the forward-looking statements included in this presentation will prove to be accurate. In light of the significant uncertainties in the forward-looking statements, the inclusion of such information should not be regarded as a representation by Premier or any other persons, that our objectives and plans will be achieved. Forward-looking statements involve numerous risks and uncertainties, any one or more of which could affect Premier’s business and financial results in future periods and could cause actual results to differ materially from plans and projections. These risks and uncertainties include, but not limited to: financial markets, our customers, and our business and results of operation; changes in interest rates; disruptions in the mortgage market; risks and uncertainties inherent in general and local banking, insurance and mortgage conditions; political uncertainty; uncertainty in U.S. fiscal or monetary policy; uncertainty concerning or disruptions relating to tensions surrounding the current socioeconomic landscape; competitive factors specific to markets in which Premier and its subsidiaries operate; increasing competition for financial products from other financial institutions and nonbank financial technology companies; future interest rate levels; legislative or regulatory rulemaking or actions; capital market conditions; security breaches or unauthorized disclosure of confidential customer or Company information; interruptions in the effective operation of information and transaction processing systems of Premier or Premier’s vendors and service providers; failures or delays in integrating or adopting new technology; the impact of the cessation of LIBOR interest rates and implementation of a replacement rate; and other risks and uncertainties detailed from time to time in our Securities and Exchange Commission (SEC) filings, including our Annual Report on Form 10-K for the year ended December 31, 2022 and any further amendments thereto. All forward-looking statements made in this presentation are based on information presently available to the management of Premier and speak only as of the date on which they are made. We assume no obligation to update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as may be required by law. As required by U.S. GAAP, Premier will evaluate the impact of subsequent events through the issuance date of its December 31, 2023, 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, core net income and core pre-tax pre-provision income to be a useful supplemental measure of our operating performance. We define core net interest income as net interest income on a tax-equivalent basis excluding income from PPP loans and purchase accounting marks accretion. We define core net income as net income excluding the after-tax impact of the insurance agency gain on sale and related transaction costs. We define core pre-tax pre-provision income as pre-tax pre-provision income excluding the pre-tax impact of the insurance agency gain on sale and related transaction costs. We believe that these metrics are useful supplemental measures of operating performance because investors and equity analysts may use these measures to compare the operating performance of the Company between periods or as compared to other financial institutions or other companies on a consistent basis without having to account for income from PPP loans, purchase accounting marks accretion or the insurance agency sale. Our supplemental reporting measures and similarly entitled financial measures are widely used by investors, equity and debt analysts and ratings agencies in the valuation, comparison, rating and investment recommendations of companies. Our management uses these financial measures to facilitate internal and external comparisons to historical operating results and in making operating decisions. Additionally, they are utilized by the Board of Directors to evaluate management. The supplemental reporting measures do not represent net income or cash flow provided from operating activities as determined in accordance with U.S. GAAP and should not be considered as alternative measures of profitability or liquidity. Finally, the supplemental reporting measures, as defined by us, may not be comparable to similarly entitled items reported by other financial institutions or other companies. Please see the exhibits for reconciliations of our supplemental reporting measures.

 

 

Consolidated Balance Sheets (Unaudited)
Premier Financial Corp.
 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

(in thousands)

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2022

 

 
Assets
Cash and cash equivalents
Cash and amounts due from depositories

$

81,973

 

$

70,642

 

$

71,096

 

$

68,628

 

$

88,257

 

Interest-bearing deposits

 

32,783

 

 

46,855

 

 

50,631

 

 

88,399

 

 

39,903

 

 

114,756

 

 

117,497

 

 

121,727

 

 

157,027

 

 

128,160

 

 
Available-for-sale, carried at fair value

 

946,708

 

 

911,184

 

 

961,123

 

 

998,128

 

 

1,040,081

 

Equity securities, carried at fair value

 

5,773

 

 

5,860

 

 

6,458

 

 

6,387

 

 

7,832

 

Securities investments

 

952,481

 

 

917,044

 

 

967,581

 

 

1,004,515

 

 

1,047,913

 

 
Loans (1)

 

6,739,387

 

 

6,696,869

 

 

6,708,568

 

 

6,575,829

 

 

6,460,620

 

Allowance for credit losses - loans

 

(76,512

)

 

(76,513

)

 

(75,921

)

 

(74,273

)

 

(72,816

)

Loans, net

 

6,662,875

 

 

6,620,356

 

 

6,632,647

 

 

6,501,556

 

 

6,387,804

 

Loans held for sale

 

145,641

 

 

135,218

 

 

128,079

 

 

119,604

 

 

115,251

 

Mortgage servicing rights

 

18,696

 

 

19,642

 

 

20,160

 

 

20,654

 

 

21,171

 

Accrued interest receivable

 

33,446

 

 

34,648

 

 

30,056

 

 

29,388

 

 

28,709

 

Federal Home Loan Bank stock

 

21,760

 

 

25,049

 

 

39,887

 

 

37,056

 

 

29,185

 

Bank Owned Life Insurance

 

181,544

 

 

172,906

 

 

171,856

 

 

170,841

 

 

170,713

 

Office properties and equipment

 

56,878

 

 

55,679

 

 

55,736

 

 

55,982

 

 

55,541

 

Real estate and other assets held for sale

 

243

 

 

387

 

 

561

 

 

393

 

 

619

 

Goodwill

 

295,602

 

 

295,602

 

 

295,602

 

 

317,988

 

 

317,988

 

Core deposit and other intangibles

 

12,186

 

 

13,220

 

 

14,298

 

 

17,804

 

 

19,074

 

Other assets

 

129,841

 

 

155,628

 

 

138,021

 

 

129,508

 

 

133,214

 

Total Assets

$

8,625,949

 

$

8,562,876

 

$

8,616,211

 

$

8,562,316

 

$

8,455,342

 

 
Liabilities and Stockholders’ Equity
Non-interest-bearing deposits

$

1,591,979

 

$

1,545,595

 

$

1,573,837

 

$

1,649,726

 

$

1,869,509

 

Interest-bearing deposits

 

5,209,123

 

 

5,127,863

 

 

5,007,358

 

 

4,969,436

 

 

4,893,502

 

Brokered deposits

 

341,944

 

 

392,181

 

 

413,237

 

 

154,869

 

 

143,708

 

Total deposits

 

7,143,046

 

 

7,065,639

 

 

6,994,432

 

 

6,774,031

 

 

6,906,719

 

Advances from FHLB

 

280,000

 

 

339,000

 

 

455,000

 

 

658,000

 

 

428,000

 

Subordinated debentures

 

85,229

 

 

85,197

 

 

85,166

 

 

85,123

 

 

85,103

 

Advance payments by borrowers

 

23,277

 

 

22,781

 

 

26,045

 

 

26,300

 

 

34,188

 

Reserve for credit losses - unfunded commitments

 

4,307

 

 

4,690

 

 

5,708

 

 

6,577

 

 

6,816

 

Other liabilities

 

114,463

 

 

126,002

 

 

112,889

 

 

97,835

 

 

106,795

 

Total Liabilities

 

7,650,322

 

 

7,643,309

 

 

7,679,240

 

 

7,647,866

 

 

7,567,621

 

Stockholders’ Equity
Preferred stock

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Common stock, net

 

306

 

 

306

 

 

306

 

 

306

 

 

306

 

Additional paid-in-capital

 

690,585

 

 

690,038

 

 

689,579

 

 

689,807

 

 

691,453

 

Accumulated other comprehensive income (loss)

 

(153,719

)

 

(200,282

)

 

(168,721

)

 

(153,709

)

 

(173,460

)

Retained earnings

 

569,937

 

 

560,945

 

 

547,336

 

 

510,021

 

 

502,909

 

Treasury stock, at cost

 

(131,482

)

 

(131,440

)

 

(131,529

)

 

(131,975

)

 

(133,487

)

Total Stockholders’ Equity

 

975,627

 

 

919,567

 

 

936,971

 

 

914,450

 

 

887,721

 

Total Liabilities and Stockholders’ Equity

$

8,625,949

 

$

8,562,876

 

$

8,616,211

 

$

8,562,316

 

$

8,455,342

 

 
(1) Includes PPP loans of:

$

469

 

$

526

 

$

577

 

$

791

 

$

1,143

 

 

 

Consolidated Statements of Income (Unaudited)
Premier Financial Corp.

Three Months Ended

 

Year Ended

(in thousands, except per share amounts)

12/31/23

 

9/30/23

 

6/30/23

 

3/31/23

 

12/31/22

 

12/31/23

 

12/31/22

Interest Income:
Loans

$

87,924

 

$

86,612

 

$

81,616

 

$

76,057

 

$

72,194

 

$

332,208

 

$

249,561

 

Investment securities

 

7,013

 

 

6,943

 

 

6,997

 

 

7,261

 

 

7,605

 

 

28,214

 

 

26,095

 

Interest-bearing deposits

 

740

 

 

652

 

 

641

 

 

444

 

 

444

 

 

2,478

 

 

831

 

FHLB stock dividends

 

621

 

 

690

 

 

905

 

 

394

 

 

482

 

 

2,610

 

 

1,225

 

Total interest income

 

96,298

 

 

94,897

 

 

90,159

 

 

84,156

 

 

80,725

 

 

365,510

 

 

277,712

 

Interest Expense:
Deposits

 

39,250

 

 

34,874

 

 

26,825

 

 

21,458

 

 

13,161

 

 

122,407

 

 

24,909

 

FHLB advances

 

3,328

 

 

4,597

 

 

8,217

 

 

5,336

 

 

3,941

 

 

21,479

 

 

6,550

 

Subordinated debentures

 

1,169

 

 

1,162

 

 

1,125

 

 

1,075

 

 

1,000

 

 

4,531

 

 

3,327

 

Notes Payable

 

-

 

 

-

 

 

-

 

 

-

 

 

4

 

 

-

 

 

5

 

Total interest expense

 

43,747

 

 

40,633

 

 

36,167

 

 

27,869

 

 

18,106

 

 

148,417

 

 

34,791

 

Net interest income

 

52,551

 

 

54,264

 

 

53,992

 

 

56,287

 

 

62,619

 

 

217,093

 

 

242,921

 

Provision (benefit) for credit losses - loans

 

2,143

 

 

245

 

 

1,410

 

 

3,944

 

 

3,020

 

 

7,742

 

 

12,503

 

Provision (benefit) for credit losses - unfunded
commitments

 

(382

)

 

(1,018

)

 

(870

)

 

(238

)

 

(246

)

 

(2,508

)

 

1,784

 

Total provision (benefit) for credit losses

 

1,761

 

 

(773

)

 

540

 

 

3,706

 

 

2,774

 

 

5,234

 

 

14,287

 

Net interest income after provision

 

50,790

 

 

55,037

 

 

53,452

 

 

52,581

 

 

59,845

 

 

211,859

 

 

228,634

 

Non-interest Income:
Service fees and other charges

 

6,761

 

 

6,947

 

 

7,190

 

 

6,428

 

 

6,632

 

 

27,325

 

 

25,853

 

Mortgage banking income

 

802

 

 

3,274

 

 

2,940

 

 

(274

)

 

(299

)

 

6,743

 

 

9,871

 

Gain (loss) on sale of non-mortgage loans

 

94

 

 

-

 

 

71

 

 

-

 

 

-

 

 

165

 

 

-

 

Gain (loss) on sale of available for sale securities

 

10

 

 

-

 

 

(7

)

 

34

 

 

1

 

 

37

 

 

1

 

Gain (loss) on equity securities

 

665

 

 

256

 

 

71

 

 

(1,445

)

 

1,209

 

 

(453

)

 

(551

)

Gain on sale of insurance agency

 

-

 

 

-

 

 

36,296

 

 

-

 

 

-

 

 

36,296

 

 

-

 

Insurance commissions

 

-

 

 

-

 

 

4,131

 

 

4,725

 

 

3,576

 

 

8,856

 

 

16,228

 

Wealth management income

 

1,791

 

 

1,509

 

 

1,537

 

 

1,485

 

 

1,582

 

 

6,322

 

 

5,828

 

Income from Bank Owned Life Insurance

 

1,532

 

 

1,050

 

 

1,015

 

 

1,417

 

 

984

 

 

5,014

 

 

3,946

 

Other non-interest income

 

134

 

 

217

 

 

102

 

 

92

 

 

543

 

 

544

 

 

984

 

Total Non-interest Income

 

11,789

 

 

13,253

 

 

53,346

 

 

12,462

 

 

14,228

 

 

90,849

 

 

62,160

 

Non-interest Expense:
Compensation and benefits

 

20,963

 

 

21,813

 

 

24,175

 

 

25,658

 

 

24,999

 

 

92,609

 

 

97,396

 

Occupancy

 

3,318

 

 

3,145

 

 

3,320

 

 

3,574

 

 

3,383

 

 

13,358

 

 

14,039

 

FDIC insurance premium

 

1,383

 

 

1,346

 

 

1,786

 

 

1,288

 

 

1,276

 

 

5,803

 

 

3,647

 

Financial institutions tax

 

761

 

 

989

 

 

961

 

 

852

 

 

795

 

 

3,563

 

 

4,110

 

Data processing

 

4,678

 

 

4,010

 

 

3,640

 

 

3,863

 

 

3,882

 

 

16,191

 

 

13,780

 

Amortization of intangibles

 

1,033

 

 

1,078

 

 

1,223

 

 

1,270

 

 

1,293

 

 

4,604

 

 

5,450

 

Transaction costs

 

-

 

 

-

 

 

3,652

 

 

-

 

 

-

 

 

3,652

 

 

-

 

Other non-interest expense

 

5,757

 

 

5,671

 

 

5,738

 

 

6,286

 

 

7,400

 

 

23,451

 

 

26,089

 

Total Non-interest Expense

 

37,893

 

 

38,052

 

 

44,495

 

 

42,791

 

 

43,028

 

 

163,231

 

 

164,511

 

Income before income taxes

 

24,686

 

 

30,238

 

 

62,303

 

 

22,252

 

 

31,045

 

 

139,477

 

 

126,283

 

Income tax expense

 

4,616

 

 

5,551

 

 

13,912

 

 

4,103

 

 

5,770

 

 

28,182

 

 

24,096

 

Net Income

$

20,070

 

$

24,687

 

$

48,391

 

$

18,149

 

$

25,275

 

$

111,295

 

$

102,187

 

 
 
Earnings per common share:
Basic

$

0.56

 

$

0.69

 

$

1.35

 

$

0.51

 

$

0.71

 

$

3.11

 

$

2.86

 

Diluted

$

0.56

 

$

0.69

 

$

1.35

 

$

0.51

 

$

0.71

 

$

3.11

 

$

2.85

 

 
Average Shares Outstanding:
Basic

 

35,655

 

 

35,730

 

 

35,722

 

 

35,606

 

 

35,589

 

 

35,693

 

 

35,679

 

Diluted

 

35,772

 

 

35,794

 

 

35,800

 

 

35,719

 

 

35,790

 

 

35,781

 

 

35,809

 

 

 

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

$

96,340

 

$

94,951

 

$

90,226

 

$

84,260

 

$

80,889

 

$

365,777

 

$

278,526

 

Interest expense

 

43,747

 

 

40,633

 

 

36,167

 

 

27,869

 

 

18,106

 

 

148,417

 

 

34,791

 

Tax-equivalent net interest income (1)

 

52,593

 

 

54,318

 

 

54,059

 

 

56,391

 

 

62,783

 

 

217,360

 

 

243,735

 

Provision expense for credit losses

 

1,761

 

 

(773

)

 

540

 

 

3,706

 

 

2,774

 

 

5,234

 

 

14,287

 

Non-interest income (ex securities
gains/losses)

 

11,114

 

 

12,997

 

 

53,282

 

 

13,873

 

 

13,018

 

 

91,265

 

 

62,710

 

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

 

11,114

 

 

12,997

 

 

16,986

 

 

13,873

 

 

13,018

 

 

54,969

 

 

62,710

 

Non-interest expense

 

37,893

 

 

38,052

 

 

44,495

 

 

42,791

 

 

43,028

 

 

163,231

 

 

164,511

 

Core non-interest expense (2)

 

37,893

 

 

38,052

 

 

40,843

 

 

42,791

 

 

43,028

 

 

159,579

 

 

164,511

 

Income tax expense

 

4,616

 

 

5,551

 

 

13,912

 

 

4,103

 

 

5,770

 

 

28,182

 

 

24,096

 

Net income

 

20,070

 

 

24,687

 

 

48,391

 

 

18,149

 

 

25,275

 

 

111,295

 

 

102,187

 

Core net income (2)

 

20,070

 

 

24,687

 

 

24,230

 

 

18,149

 

 

25,275

 

 

87,134

 

 

102,187

 

Tax equivalent adjustment (1)

 

42

 

 

54

 

 

67

 

 

104

 

 

164

 

 

267

 

 

814

 

At Period End
Total assets

$

8,625,949

 

$

8,562,876

 

$

8,616,211

 

$

8,562,316

 

$

8,455,342

 

Goodwill and intangibles

 

307,788

 

 

308,822

 

 

309,900

 

 

335,792

 

 

337,062

 

Tangible assets (3)

 

8,318,161

 

 

8,254,054

 

 

8,306,311

 

 

8,226,524

 

 

8,118,280

 

Earning assets

 

7,815,540

 

 

7,744,522

 

 

7,818,825

 

 

7,751,130

 

 

7,620,056

 

Loans

 

6,739,387

 

 

6,696,869

 

 

6,708,568

 

 

6,575,829

 

 

6,460,620

 

Allowance for loan losses

 

76,512

 

 

76,513

 

 

75,921

 

 

74,273

 

 

72,816

 

Deposits

 

7,143,046

 

 

7,065,639

 

 

6,994,432

 

 

6,774,031

 

 

6,906,719

 

Stockholders’ equity

 

975,627

 

 

919,567

 

 

936,971

 

 

914,450

 

 

887,721

 

Stockholders’ equity / assets

 

11.31

%

 

10.74

%

 

10.87

%

 

10.68

%

 

10.50

%

Tangible equity (3)

 

667,839

 

 

610,745

 

 

627,071

 

 

578,658

 

 

550,659

 

Tangible equity / tangible assets

 

8.03

%

 

7.40

%

 

7.55

%

 

7.03

%

 

6.78

%

Average Balances
Total assets

$

8,536,193

 

$

8,582,219

 

$

8,597,786

 

$

8,433,100

 

$

8,304,462

 

$

8,537,730

 

$

7,932,398

 

Earning assets

 

7,936,648

 

 

7,969,363

 

 

7,951,520

 

 

7,783,850

 

 

7,653,648

 

 

7,912,651

 

 

7,237,621

 

Loans

 

6,754,782

 

 

6,763,232

 

 

6,714,240

 

 

6,535,080

 

 

6,359,564

 

 

6,692,631

 

 

5,885,969

 

Deposits and interest-bearing liabilities

 

7,447,324

 

 

7,486,595

 

 

7,538,674

 

 

7,385,946

 

 

7,278,531

 

 

7,464,863

 

 

6,882,309

 

Deposits

 

7,098,265

 

 

7,045,827

 

 

6,799,605

 

 

6,833,521

 

 

6,773,382

 

 

6,945,308

 

 

6,533,539

 

Stockholders’ equity

 

930,835

 

 

939,456

 

 

921,441

 

 

901,587

 

 

875,287

 

 

923,454

 

 

927,534

 

Goodwill and intangibles

 

308,243

 

 

309,330

 

 

334,862

 

 

336,418

 

 

337,207

 

 

322,101

 

 

339,255

 

Tangible equity (3)

 

622,592

 

 

630,126

 

 

586,579

 

 

565,169

 

 

538,080

 

 

601,353

 

 

588,279

 

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

$

0.56

 

$

0.69

 

$

1.35

 

$

0.51

 

$

0.71

 

$

3.11

 

$

2.86

 

EPS - Diluted

 

0.56

 

 

0.69

 

 

1.35

 

 

0.51

 

 

0.71

 

 

3.11

 

 

2.85

 

EPS - Core diluted (2)

 

0.56

 

 

0.69

 

 

0.68

 

 

0.51

 

 

0.71

 

 

2.44

 

 

2.85

 

Dividends Paid

 

0.31

 

 

0.31

 

 

0.31

 

 

0.31

 

 

0.30

 

 

1.24

 

 

1.20

 

Market Value:
High

$

24.87

 

$

22.89

 

$

21.01

 

$

27.80

 

$

30.51

 

$

27.99

 

$

32.52

 

Low

 

15.79

 

 

15.70

 

 

13.60

 

 

20.39

 

 

26.11

 

 

13.60

 

 

24.67

 

Close

 

24.10

 

 

17.06

 

 

16.02

 

 

20.73

 

 

26.97

 

 

24.10

 

 

26.97

 

Common Book Value

 

27.31

 

 

25.74

 

 

26.23

 

 

25.61

 

 

24.94

 

Tangible Common Book Value (3)

 

18.69

 

 

17.09

 

 

17.55

 

 

16.21

 

 

15.47

 

Shares outstanding, end of period (000s)

 

35,730

 

 

35,731

 

 

35,727

 

 

35,701

 

 

35,591

 

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

 

2.65

%

 

2.73

%

 

2.72

%

 

2.90

%

 

3.28

%

 

2.75

%

 

3.37

%

Return on average assets

 

0.93

%

 

1.14

%

 

2.26

%

 

0.86

%

 

1.21

%

 

1.30

%

 

1.29

%

Core return on average assets (2)

 

0.93

%

 

1.14

%

 

1.13

%

 

0.86

%

 

1.22

%

 

1.02

%

 

1.29

%

Return on average equity

 

8.55

%

 

10.43

%

 

21.06

%

 

8.07

%

 

11.46

%

 

12.05

%

 

11.02

%

Core return on average equity (2)

 

8.55

%

 

10.43

%

 

10.55

%

 

8.07

%

 

11.58

%

 

9.44

%

 

11.02

%

Return on average tangible equity

 

12.79

%

 

15.54

%

 

33.09

%

 

12.88

%

 

18.64

%

 

18.51

%

 

17.37

%

Core return on average tangible equity (2)

 

12.79

%

 

15.54

%

 

16.57

%

 

10.51

%

 

14.64

%

 

14.49

%

 

17.37

%

Efficiency ratio (4)

 

59.48

%

 

56.53

%

 

41.45

%

 

60.90

%

 

56.76

%

 

52.89

%

 

53.68

%

Core efficiency ratio (2)

 

59.48

%

 

56.53

%

 

57.49

%

 

60.90

%

 

56.76

%

 

58.60

%

 

53.68

%

Non-interest expenses / average assets

 

1.76

%

 

1.76

%

 

2.08

%

 

2.06

%

 

2.06

%

 

1.91

%

 

2.07

%

Core non-interest expenses / average assets

 

1.76

%

 

1.76

%

 

1.91

%

 

2.06

%

 

2.06

%

 

1.87

%

 

2.07

%

Effective tax rate

 

18.70

%

 

18.36

%

 

22.33

%

 

18.44

%

 

18.59

%

 

20.21

%

 

19.08

%

Common dividend payout ratio

 

55.36

%

 

44.93

%

 

22.96

%

 

60.78

%

 

42.25

%

 

39.87

%

 

42.11

%

(1) Interest income on tax-exempt securities and loans has been adjusted to a tax-equivalent basis using the statutory federal income tax rate of 21%.
(2) Core items exclude the impact of insurance agency disposition related items. See non-GAAP reconciliations.
(3) Tangible assets = total assets less the sum of goodwill and core deposit and other intangibles. Tangible equity = total stockholders' equity less the sum of goodwill, core deposit and other intangibles, and preferred stock. Tangible common book value = tangible equity divided by shares outstanding at the end of the period.
(4) Efficiency ratio = Non-interest expense divided by sum of tax-equivalent net interest income plus non-interest income, excluding securities gains or losses, net.

 

 

Premier Financial Corp.
Yield Analysis
(dollars in thousands) Three Months Ended Year Ended
12/31/23 9/30/23 6/30/23 3/31/23 12/31/22 12/31/23 12/31/22
Average Balances
Interest-earning assets:
Loans receivable (1)

$

6,754,782

 

$

6,763,232

 

$

6,714,240

 

$

6,535,080

 

$

6,359,564

 

$

6,692,631

 

$

5,885,969

 

Securities

 

1,121,231

 

 

1,137,730

 

 

1,155,451

 

 

1,190,359

 

 

1,236,511

 

 

1,150,966

 

 

1,258,901

 

Interest Bearing Deposits

 

36,761

 

 

38,210

 

 

36,730

 

 

35,056

 

 

29,884

 

 

36,698

 

 

70,917

 

FHLB stock

 

23,874

 

 

30,191

 

 

45,099

 

 

30,353

 

 

28,386

 

 

32,356

 

 

21,834

 

Total interest-earning assets

 

7,936,648

 

 

7,969,363

 

 

7,951,520

 

 

7,790,848

 

 

7,654,345

 

 

7,912,651

 

 

7,237,621

 

Non-interest-earning assets

 

599,545

 

 

612,856

 

 

646,266

 

 

642,252

 

 

650,117

 

 

625,079

 

 

694,777

 

Total assets

$

8,536,193

 

$

8,582,219

 

$

8,597,786

 

$

8,433,100

 

$

8,304,462

 

$

8,537,730

 

$

7,932,398

 

Deposits and Interest-bearing Liabilities:
Interest bearing deposits

$

5,541,498

 

$

5,490,945

 

$

5,195,727

 

$

5,078,510

 

$

4,901,412

 

$

5,328,389

 

$

4,741,827

 

FHLB advances and other

 

263,848

 

 

355,576

 

 

653,923

 

 

467,311

 

 

419,761

 

 

434,389

 

 

263,551

 

Subordinated debentures

 

85,211

 

 

85,179

 

 

85,146

 

 

85,114

 

 

85,084

 

 

85,163

 

 

85,036

 

Notes payable

 

-

 

 

13

 

 

-

 

 

-

 

 

304

 

 

3

 

 

183

 

Total interest-bearing liabilities

 

5,890,557

 

 

5,931,713

 

 

5,934,796

 

 

5,630,935

 

 

5,406,561

 

 

5,847,944

 

 

5,090,597

 

Non-interest bearing deposits

 

1,556,767

 

 

1,554,882

 

 

1,603,878

 

 

1,755,011

 

 

1,871,970

 

 

1,616,919

 

 

1,791,712

 

Total including non-interest-bearing deposits

 

7,447,324

 

 

7,486,595

 

 

7,538,674

 

 

7,385,946

 

 

7,278,531

 

 

7,464,863

 

 

6,882,309

 

Other non-interest-bearing liabilities

 

158,034

 

 

156,168

 

 

137,671

 

 

145,567

 

 

150,644

 

 

149,413

 

 

122,555

 

Total liabilities

 

7,605,358

 

 

7,642,763

 

 

7,676,345

 

 

7,531,513

 

 

7,429,175

 

 

7,614,276

 

 

7,004,864

 

Stockholders' equity

 

930,835

 

 

939,456

 

 

921,441

 

 

901,587

 

 

875,287

 

 

923,454

 

 

927,534

 

Total liabilities and stockholders' equity

$

8,536,193

 

$

8,582,219

 

$

8,597,786

 

$

8,433,100

 

$

8,304,462

 

$

8,537,730

 

$

7,932,398

 

IEAs/IBLs

 

135

%

 

134

%

 

134

%

 

138

%

 

142

%

 

135

%

 

142

%

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

$

87,929

 

$

86,618

 

$

81,622

 

$

76,063

 

$

72,201

 

$

332,231

 

$

249,586

 

Securities (2)

 

7,050

 

 

6,991

 

 

7,058

 

 

7,359

 

 

7,762

 

 

28,458

 

 

26,884

 

Interest Bearing Deposits

 

740

 

 

652

 

 

641

 

 

444

 

 

444

 

 

2,478

 

 

831

 

FHLB stock

 

621

 

 

690

 

 

905

 

 

394

 

 

482

 

 

2,610

 

 

1,225

 

Total interest-earning assets

 

96,340

 

 

94,951

 

 

90,226

 

 

84,260

 

 

80,889

 

 

365,777

 

 

278,526

 

Deposits and Interest-bearing Liabilities:
Interest bearing deposits

$

39,250

 

$

34,874

 

$

26,825

 

$

21,458

 

$

13,161

 

$

122,407

 

$

24,909

 

FHLB advances and other

 

3,328

 

 

4,597

 

 

8,217

 

 

5,336

 

 

3,941

 

 

21,479

 

 

6,550

 

Subordinated debentures

 

1,169

 

 

1,162

 

 

1,125

 

 

1,075

 

 

1,001

 

 

4,531

 

 

3,327

 

Notes payable

 

-

 

 

-

 

 

-

 

 

-

 

 

3

 

 

-

 

 

5

 

Total interest-bearing liabilities

 

43,747

 

 

40,633

 

 

36,167

 

 

27,869

 

 

18,106

 

 

148,417

 

 

34,791

 

Non-interest bearing deposits

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Total including non-interest-bearing deposits

 

43,747

 

 

40,633

 

 

36,167

 

 

27,869

 

 

18,106

 

 

148,417

 

 

34,791

 

Net interest income

$

52,593

 

$

54,318

 

$

54,059

 

$

56,391

 

$

62,783

 

$

217,360

 

$

243,735

 

Less: PPP income

 

(5

)

 

(4

)

 

(5

)

 

(6

)

 

(6

)

 

(20

)

 

(3,833

)

Less: Acquisition marks accretion

 

(252

)

 

(322

)

 

(380

)

 

(387

)

 

(554

)

 

(1,340

)

 

(2,606

)

Core net interest income

$

52,336

 

$

53,992

 

$

53,674

 

$

55,998

 

$

62,223

 

$

216,000

 

$

237,296

 

 
Annualized Average Rates
Interest-earning assets:
Loans receivable

 

5.21

%

 

5.12

%

 

4.86

%

 

4.66

%

 

4.54

%

 

4.96

%

 

4.24

%

Securities (3)

 

2.52

%

 

2.46

%

 

2.44

%

 

2.47

%

 

2.51

%

 

2.47

%

 

2.14

%

Interest Bearing Deposits

 

8.05

%

 

6.83

%

 

6.98

%

 

5.07

%

 

5.94

%

 

6.75

%

 

1.17

%

FHLB stock

 

10.40

%

 

9.14

%

 

8.03

%

 

5.19

%

 

6.79

%

 

8.07

%

 

5.61

%

Total interest-earning assets

 

4.86

%

 

4.77

%

 

4.54

%

 

4.33

%

 

4.23

%

 

4.62

%

 

3.85

%

Deposits and Interest-bearing Liabilities:
Interest bearing deposits

 

2.83

%

 

2.54

%

 

2.07

%

 

1.69

%

 

1.07

%

 

2.30

%

 

0.53

%

FHLB advances and other

 

5.05

%

 

5.17

%

 

5.03

%

 

4.57

%

 

3.76

%

 

4.94

%

 

2.49

%

Subordinated debentures

 

5.49

%

 

5.46

%

 

5.29

%

 

5.05

%

 

4.71

%

 

5.32

%

 

3.91

%

Notes payable

 

-

 

 

-

 

 

-

 

 

-

 

 

3.95

%

 

0.00

%

 

2.73

%

Total interest-bearing liabilities

 

2.97

%

 

2.74

%

 

2.44

%

 

1.98

%

 

1.34

%

 

2.54

%

 

0.68

%

Non-interest bearing deposits

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Total including non-interest-bearing deposits

 

2.35

%

 

2.17

%

 

1.92

%

 

1.51

%

 

1.00

%

 

1.99

%

 

0.51

%

Net interest spread

 

1.89

%

 

2.03

%

 

2.10

%

 

2.35

%

 

2.89

%

 

2.08

%

 

3.17

%

Net interest margin (4)

 

2.65

%

 

2.73

%

 

2.72

%

 

2.90

%

 

3.28

%

 

2.75

%

 

3.37

%

Core net interest margin (4)

 

2.64

%

 

2.71

%

 

2.70

%

 

2.88

%

 

3.25

%

 

2.73

%

 

3.28

%

 
(1) Includes average PPP loans of:

$

495

 

$

553

 

$

673

 

$

965

 

$

1,160

 

$

670

 

$

12,102

 

(2) Interest on certain tax exempt loans and securities is not taxable for Federal income tax purposes. In order to compare the tax-exempt yields on these assets to taxable yields, the interest earned on these assets is adjusted to a pre-tax equivalent amount based on the marginal corporate federal income tax rate of 21%.
(3) Securities yield = annualized interest income divided by the average balance of securities, excluding average unrealized gains/losses.
(4) Net interest margin is tax equivalent net interest income divided by average interest-earning assets. Core net interest margin represents net interest margin excluding PPP and acquisition marks accretion.

 

 

Premier Financial Corp.
Deposits and Liquidity
(dollars in thousands)
As of and for the Three Months Ended
12/31/23 9/30/23 6/30/23 3/31/23 12/31/22
Ending Balances
Non-interest-bearing demand deposits

$

1,591,979

 

$

1,545,595

 

$

1,573,837

 

$

1,649,726

 

$

1,869,509

 

Savings deposits

 

677,679

 

 

709,938

 

 

748,392

 

 

775,186

 

 

797,376

 

Interest-bearing demand deposits

 

565,757

 

 

580,069

 

 

594,325

 

 

646,329

 

 

653,960

 

Money market account deposits

 

1,374,526

 

 

1,279,551

 

 

1,282,721

 

 

1,342,451

 

 

1,493,729

 

Time deposits

 

998,002

 

 

925,353

 

 

904,717

 

 

856,720

 

 

768,678

 

Public funds, ICS and CDARS deposits

 

1,593,159

 

 

1,632,952

 

 

1,477,203

 

 

1,348,750

 

 

1,179,759

 

Brokered deposits

 

341,944

 

 

392,181

 

 

413,237

 

 

154,869

 

 

143,708

 

Total deposits

$

7,143,046

 

$

7,065,639

 

$

6,994,432

 

$

6,774,031

 

$

6,906,719

 

 
Average Balances
Non-interest-bearing demand deposits

$

1,556,767

 

$

1,554,882

 

$

1,603,878

 

$

1,755,011

 

$

1,871,970

 

Savings deposits

 

691,295

 

 

728,545

 

 

762,074

 

 

782,215

 

 

806,653

 

Interest-bearing demand deposits

 

557,210

 

 

575,744

 

 

603,572

 

 

637,423

 

 

651,685

 

Money market account deposits

 

1,331,623

 

 

1,278,381

 

 

1,311,177

 

 

1,430,905

 

 

1,418,549

 

Time deposits

 

959,420

 

 

912,579

 

 

872,991

 

 

825,652

 

 

685,453

 

Public funds, ICS and CDARS deposits

 

1,614,339

 

 

1,573,213

 

 

1,399,749

 

 

1,232,230

 

 

1,235,772

 

Brokered deposits

 

387,611

 

 

422,483

 

 

246,164

 

 

170,085

 

 

103,300

 

Total deposits

$

7,098,265

 

$

7,045,827

 

$

6,799,605

 

$

6,833,521

 

$

6,773,382

 

 
Average Rates
Non-interest-bearing demand deposits

 

0.00

%

 

0.00

%

 

0.00

%

 

0.00

%

 

0.00

%

Savings deposits

 

0.03

%

 

0.03

%

 

0.02

%

 

0.02

%

 

0.02

%

Interest-bearing demand deposits

 

0.13

%

 

0.11

%

 

0.10

%

 

0.07

%

 

0.07

%

Money market account deposits

 

2.65

%

 

2.02

%

 

1.73

%

 

1.54

%

 

0.81

%

Time deposits

 

3.15

%

 

2.68

%

 

2.27

%

 

1.83

%

 

1.05

%

Public funds, ICS and CDARS deposits

 

4.30

%

 

4.18

%

 

3.71

%

 

3.32

%

 

2.41

%

Brokered deposits

 

5.46

%

 

5.36

%

 

4.92

%

 

4.19

%

 

3.32

%

Total deposits

 

2.21

%

 

1.98

%

 

1.58

%

 

1.26

%

 

0.78

%

 
Other Deposits Data
Loans/Deposits Ratio

 

94.3

%

 

94.8

%

 

95.9

%

 

97.1

%

 

93.5

%

Uninsured deposits %

 

33.1

%

 

32.8

%

 

31.5

%

 

32.3

%

 

35.3

%

Adjusted uninsured deposits % (1)

 

18.9

%

 

17.7

%

 

17.3

%

 

19.6

%

 

22.2

%

Top 20 depositors %

 

13.9

%

 

14.1

%

 

12.4

%

 

12.1

%

 

5.4

%

Public funds %

 

17.9

%

 

18.8

%

 

17.5

%

 

16.5

%

 

14.8

%

Average account size (excluding brokered)

$

26.9

 

$

27.1

 

$

26.7

 

$

27.0

 

$

27.8

 

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

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

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

 

946,708

 

 

911,184

 

 

961,123

 

 

998,128

 

 

1,040,081

 

Equity investment at fair value (3)

 

5,773

 

 

5,860

 

 

6,458

 

 

6,387

 

 

7,832

 

Total securities at fair value

$

952,481

 

$

917,044

 

$

967,581

 

$

1,004,515

 

$

1,047,913

 

Cash+Securities/Assets

 

12.4

%

 

12.1

%

 

12.6

%

 

13.6

%

 

13.9

%

Projected AFS cash flow in next 12 months

$

69,067

 

$

66,495

 

$

64,687

 

$

73,184

 

$

73,319

 

AFS average life (years)

 

6.2

 

 

6.5

 

 

6.5

 

 

6.4

 

 

6.5

 

 
Liquidity Sources
Cash and cash equivalents

$

114,756

 

$

117,497

 

$

121,727

 

$

157,027

 

$

128,160

 

Unpledged securities at fair value

 

314,385

 

 

280,916

 

 

298,471

 

 

211,468

 

 

288,134

 

FHLB borrowing capacity

 

1,336,707

 

 

1,311,091

 

 

1,542,459

 

 

1,358,650

 

 

1,528,978

 

Brokered deposits

 

513,767

 

 

316,697

 

 

288,719

 

 

524,889

 

 

549,370

 

Bank and parent lines of credit

 

70,000

 

 

70,000

 

 

70,000

 

 

70,000

 

 

70,000

 

Federal Reserve - Discount Window and BTFP (4)

 

620,518

 

 

471,395

 

 

491,141

 

 

129,918

 

 

44,471

 

Total

$

2,970,133

 

$

2,567,596

 

$

2,812,517

 

$

2,451,952

 

$

2,609,113

 

Total liquidity to adjusted uninsured deposits ratio

 

218.3

%

 

204.0

%

 

230.5

%

 

183.2

%

 

168.9

%

(1) Adjusted for collateralized deposits, other insured deposits and intra-company accounts.
(2) Mark-to-market included in accumulated other comprehensive income.
(3) Mark-to-market included in net income each quarter.
(4) Includes borrowing capacity related to unpledged securities at par value in excess of fair value under Bank Term Funding Program.

 

 

Premier Financial Corp.
Loans and Capital
(dollars in thousands)
12/31/23 9/30/23 6/30/23 3/31/23 12/31/22
Loan Portfolio Composition
Residential real estate

$

1,810,265

 

$

1,797,676

 

$

1,711,632

 

$

1,624,331

 

$

1,535,574

 

Residential real estate construction

 

28,794

 

 

51,637

 

 

111,708

 

 

141,209

 

 

176,737

 

Total residential loans

 

1,839,059

 

 

1,849,313

 

 

1,823,340

 

 

1,765,540

 

 

1,712,311

 

 
Commercial real estate

 

2,839,905

 

 

2,820,410

 

 

2,848,410

 

 

2,813,441

 

 

2,762,311

 

Commercial construction

 

528,563

 

 

502,502

 

 

472,328

 

 

440,510

 

 

428,743

 

Commercial excluding PPP

 

1,056,334

 

 

1,038,939

 

 

1,068,795

 

 

1,060,351

 

 

1,054,037

 

Core commercial loans (1)

 

4,424,802

 

 

4,361,851

 

 

4,389,533

 

 

4,314,302

 

 

4,245,091

 

 
Consumer direct/indirect

 

193,830

 

 

203,800

 

 

210,390

 

 

212,299

 

 

213,405

 

Home equity and improvement lines

 

267,960

 

 

269,053

 

 

272,792

 

 

271,676

 

 

277,613

 

Total consumer loans

 

461,790