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Premier Financial Corp. Announces Full Year 2022 Results and Dividend Increase

Fourth Quarter 2022 Highlights

  • Loan growth of $239.0 million (up 15.1% annualized) including $131.5 million for commercial loans excluding PPP (up 12.8% annualized)
  • Customer deposits growth of $100.4 million (up 6.0% annualized) including $43.0 million of non-interest-bearing (up 9.4% annualized)
  • Net interest income (tax equivalent) of $62.8 million or $62.2 million excluding PPP and acquisition marks accretion, up 9.3% and 17.0%, respectively, from 2021 fourth quarter
  • Completed an insurance agency acquisition
  • Declared dividend of $0.31 per share, up 3.3% from prior year comparable period

Full Year 2022 Highlights

  • Loan growth of $1.1 billion (up 20.5%) including $694.7 million for commercial loans excluding PPP (up 19.6%)
  • Customer deposits growth of $481.0 million (up 7.7%) including $144.7 million of non-interest-bearing (up 8.4%)
  • Net interest income (tax equivalent) of $243.7 million or $237.3 million excluding PPP and acquisition marks accretion, up 6.7% and 14.1%, respectively, from 2021
  • Asset quality improved with non-performing loans down 30% and classified loans down 37% from 2021

Premier Financial Corp. (Nasdaq: PFC) (“Premier” or the “Company”) announced today 2022 fourth quarter and full year results. Net income for the fourth quarter of 2022 was $25.3 million, or $0.71 per diluted common share, compared to $25.3 million, or $0.69 per diluted common share, for the fourth quarter of 2021. Net income for 2022 was $102.2 million, or $2.85 per diluted common share, compared to $126.1 million, or $3.39 per diluted common share, for 2021.

“We continued to have stronger than anticipated loan and deposit growth as we closed the fourth quarter,” said Gary Small, President and CEO of Premier. “Full year loan growth exceeded 20% with core customer deposits up 7.7%. For the full year, tax equivalent net interest income grew $29 million, or 14% on a core basis excluding PPP and purchase accounting marks. The growth reflects the strength of our client base and the markets in which we operate. We did experience a step up in deposit betas during the quarter although this is in line with our overall historical range for the deposit book of business. As noted last quarter, we are utilizing non-core funding enabling us to thoughtfully manage core deposit costs across the organization. Diligent funding cost management will be a key for the organization and the industry in 2023.”

Quarterly results

Strong loan and deposit growth

Gross loans including those held for sale increased $239.0 million (up 15.1% annualized) on a linked quarter basis. Loan growth occurred in each category, including $131.5 million from commercial loans excluding PPP (up 12.8% annualized), $100.9 million from residential loans including held for sale (up 23.4% annualized) and $5.9 million from consumer/home equity loans (up 4.8% annualized). PPP loans decreased $38 thousand and were only $1.1 million as of December 31, 2022.

Customer deposits increased $100.4 million (up 6.0% annualized) on a linked quarter basis. Deposit growth occurred in each customer category, including $43.0 million from non-interest bearing deposits (up 9.4% annualized) and $57.4 million from interest-bearing deposits (up 4.7% annualized). Brokered deposits also added $73.8 million.

Net interest income and margin

Net interest income of $62.8 million on a tax equivalent (“TE”) basis in the fourth quarter of 2022 was down 1.1% from $63.5 million in the third quarter of 2022 but up 9.3% from $57.5 million in the fourth quarter of 2021. TE net interest margin of 3.28% in the fourth quarter of 2022 decreased 12 basis points from 3.40% in the third quarter of 2022 and 13 basis points from 3.41% in the fourth quarter of 2021. Results for all periods include the impact of PPP as well as acquisition marks and related accretion. Fourth quarter 2022 includes $329 thousand of accretion in interest income, $225 thousand of accretion in interest expense and $6 thousand of interest income on average balances of $1.2 million for PPP. Excluding the impact of acquisition marks accretion and PPP loans, core net interest income was $62.2 million, down 1.0% from $62.9 million in the third quarter of 2022 but up 17.0% from $53.2 million in the fourth quarter of 2021. Additionally, core net interest margin was 3.25% for the fourth quarter of 2022, down 11 basis points from 3.36% for the third quarter of 2022 but up 4 basis points from 3.21% for the fourth quarter of 2021. These results are positively impacted by the combination of loan growth excluding PPP as discussed above and higher loan yields excluding PPP and acquisition marks accretion, which were 4.51% for the fourth quarter of 2022 compared to 4.24% in the third quarter of 2022 and 3.86% in the fourth quarter of 2021. The fourth quarter increase of 27 basis points represents a beta of 18% compared to the change in the quarterly average effective Federal Funds rate that increased 147 basis points to 3.65% for the fourth quarter of 2022 as reported by the Federal Reserve Economic Data. The cost of funds in the fourth quarter of 2022 was 1.00%, up 45 basis points from the third quarter of 2022 and up 79 basis points from the fourth quarter of 2021. The year-over-year increase is largely due to utilization of higher cost FHLB borrowings in support of loan growth in excess of deposit growth. The linked quarter increase is due to higher rates on FHLB borrowings, utilization of brokered deposits and higher average deposit costs. Excluding brokered deposits and acquisition marks accretion, average deposit costs increased 33 basis points to 0.72% for the fourth quarter of 2022, which represents a beta of 22% compared to the change in the quarterly average effective Federal Funds rate.

Non-interest income

Service fees in the fourth quarter of 2022 were $6.6 million, a 1.3% increase from $6.5 million in the third quarter of 2022 and a 4.4% increase from $6.4 million in the fourth quarter of 2021, primarily due to fluctuations in consumer activity for interchange and ATM/NSF charges. However, total non-interest income in the fourth quarter of 2022 of $14.2 million was down 14.8% from $16.7 million in the third quarter of 2022 and down 19.1% from $17.6 million in the fourth quarter of 2021 primarily due to fluctuations in mortgage banking and gains/losses on securities. Mortgage banking income decreased by $4.3 million on a linked quarter basis due to a $4.6 million decrease in gains, primarily from higher hedge costs, partially offset by a $0.3 million higher MSR valuation gain. Mortgage banking income for the fourth quarter decreased $3.4 million year-over-year due to a $4.1 million decrease in gains primarily from compressed margins and lower saleable mix offset partly by a $0.5 million benefit from lower MSR amortization and a $0.2 million higher MSR valuation gain. Securities gains were $1.2 million in the fourth quarter of 2022 primarily from $1.3 million of gains on the sale of $8.7 million of equity securities, which were partially offset by $0.1 million of decreased valuations on remaining equity securities. This compares to $43 thousand of losses from decreased valuations on equity securities in the third quarter of 2022 and $1.1 million of gains from increased valuations on equity securities in the fourth quarter of 2021. An additional $9.6 million of available-for-sale securities were sold for a gain of $1 thousand during the fourth quarter of 2022. The combined $18.3 million of proceeds from security sales will benefit net interest income beginning in the first quarter of 2023. BOLI income of $1.0 million in the fourth quarter 2022 decreased from $2.1 million in the fourth quarter 2021 due to $1.1 million of claim gains in 2021 compared to none in 2022.

“We are pleased to note we originated over $1 billion in residential mortgages for the year in a very difficult environment,” Small added. “We continue to adjust our product offering to optimize the saleable mix and improve our gain on sale margins and remain very committed to the business over the long-term.”

Non-interest expenses

Non-interest expenses in the fourth quarter of 2022 were $43.0 million, a 4.7% increase from $41.1 million in the third quarter of 2022 and a 3.7% increase from $41.5 million in the fourth quarter of 2021. Compensation and benefits were $25.0 million in the fourth quarter of 2022, compared to $24.5 million in the third quarter of 2022 and $24.2 million in the fourth quarter of 2021. The linked quarter increase was primarily due to lower deferred costs related to decreased loan production. The year-over-year increase was primarily due to costs related to higher staffing levels for our growth initiatives and higher base compensation including mid-year adjustments. Data processing and FDIC premiums increased $0.8 million and $0.3 million on a linked quarter basis, respectively, and $0.4 million and $0.5 million on a year-over-year basis, respectively, due to our growth initiatives. All other non-interest expenses increased a net $0.4 million on a linked quarter basis and decreased a net $0.1 million on a year-over-year basis. The efficiency ratio for the fourth quarter 2022 of 56.76% worsened from 51.26% in the third quarter of 2022 and from 56.14% in the fourth quarter of 2021, primarily due to higher expenses.

Credit quality

Non-performing assets totaled $34.4 million, or 0.4% of assets, at December 31, 2022, an increase from $33.6 million at September 30, 2022, but a decrease from $48.2 million at December 31, 2021. Loan delinquencies increased to $18.3 million, or 0.3% of loans, at December 31, 2022, from $13.2 million at September 30, 2022, and from $12.3 million at December 31, 2021. Classified loans totaled $43.8 million, or 0.6% of loans, as of December 31, 2022, a decrease from $45.0 million at September 30, 2022, and from $69.5 million at December 31, 2021.

The 2022 fourth quarter results include net loan charge-offs of $830 thousand and a total provision expense of $2.8 million, compared with net loan charge-offs of $9.6 million and a total provision expense of $2.0 million for the same period in 2021. The current year provision is primarily due to higher non-PPP loan growth in 2022 compared to 2021. The allowance for credit losses as a percentage of total loans was 1.13% at December 31, 2022, compared with 1.14% at September 30, 2022, and 1.26% at December 31, 2021. The allowance for credit losses as a percentage of total loans excluding PPP and including unaccreted acquisition marks was 1.17% at December 31, 2022, compared with 1.19% at September 30, 2022, and 1.37% at December 31, 2021. The continued economic improvement following the 2020 pandemic-related downturn has resulted in a year-over-year decrease in the allowance percentages.

“We are pleased with our improved asset quality this year, including a 28.5% decrease in non-performing assets to 0.41% of total assets and a 37.0% decrease in classified loans to 0.61% of loans,” said Paul Nungester, CFO of Premier. “Net charge-offs for 2022 were only 0.015% of average loans excluding $5.3 million for the student loan servicer credit that was reserved for in 2021.”

Annual results

For the year ended December 31, 2022, net income totaled $102.2 million, or $2.85 per diluted common share, compared to $126.1 million, or $3.39 per diluted common share for the year ended December 31, 2021. The year-over-year comparison is primarily impacted by fluctuations in the provision for credit losses, which was an expense of $14.3 million or $0.32 per diluted share in 2022 compared to a benefit of $7.1 million or $0.15 per share in 2021. The current year’s provision expense is primarily due to loan growth, whereas the prior year’s provision benefit was primarily due to the improving economic environment following the COVID-19 pandemic-induced economic recession and reserve increase in 2020.

TE net interest income of $243.7 million in 2022 was up 6.7% from $228.4 million in 2021. TE net interest margin of 3.37% in 2022 decreased by two basis points from 3.39% in 2021. Results for each period include the impact of PPP as well as acquisition marks and related accretion. 2022 includes $1.7 million of accretion in interest income, $0.9 million of accretion in interest expense and $3.8 million of interest income on average balances of $12.1 million for PPP. Excluding the impact of acquisition marks accretion and PPP loans, core net interest income was $237.3 million, up 14.1% from $208.0 million in 2021. Additionally, core net interest margin was 3.28% for 2022, up four basis points from 3.24% for 2021. These improved results are primarily due to loan growth excluding PPP partially offset by lower PPP income and accretion from acquisition marks. Cost of funds in 2022 was 0.51%, up 26 basis points from 2021. The year-over-year increase is primarily due to an increased utilization of higher cost FHLB borrowings in support of loan growth in excess of deposit growth and higher average deposit costs.

Service fees in 2022 were $25.9 million, a 7.0% increase from $24.2 million in 2021, primarily due to increased consumer activity for interchange and ATM/NSF charges. However, total non-interest income in 2022 of $62.2 million was down 21.6% from $79.3 million in 2021 due to fluctuations in mortgage banking, gains/losses on securities, BOLI and other income. Mortgage banking income decreased $12.1 million from 2021 due to a $10.7 million decrease in gains primarily from compressed margins and lower saleable mix and a $3.8 million decrease from lower MSR valuation gains, partially offset by a $2.5 million benefit from lower MSR amortization. Securities losses were $0.6 million in 2022 primarily from $1.3 million of gains on the sale of $8.7 million of equity securities that partially offset $1.9 million of decreased valuations on equity securities compared to $4.2 million of net gains in 2021 comprised of $2.2 million from available-for-sale security sales gains and $2.0 million of gains from increased valuations on equity securities. BOLI income for 2022 decreased $1.2 million from 2021, primarily due to $1.1 million of claim gains in 2021. Other income for 2022 decreased $1.1 million from 2021, primarily due to a $1.3 million non-recurring settlement payment in 2021.

Non-interest expenses in 2022 were $164.5 million, a 4.6% increase from $157.3 million in 2021, primarily due to fluctuations in compensation and benefit expenses. Compensation and benefits were $97.4 million in 2022 compared to $90.6 million in 2021. The year-over-year increase was primarily due to costs related to higher staffing levels for our growth initiatives and higher base compensation including mid-year adjustments. All other non-interest expenses increased a net $0.4 million on a year-over-year basis. The efficiency ratio for 2022 was 53.68% compared to 51.83% in 2021, partly due to higher expenses but also due to lower non-interest income discussed above.

Total assets at $8.46 billion

Total assets at December 31, 2022, were $8.46 billion, compared to $8.24 billion at September 30, 2022, and $7.48 billion at December 31, 2021. Gross loans receivable were $6.46 billion at December 31, 2022, compared to $6.21 billion at September 30, 2022, and $5.30 billion at December 31, 2021. At December 31, 2022, gross loans receivable increased $1.16 billion from a year ago, despite a $57.8 million decrease in PPP loans. Excluding PPP, loans grew $1.22 billion organically, or 23.3% from a year ago. Commercial loans excluding PPP increased by $694.7 million from December 31, 2021, to 2022, or 19.6%. Securities at December 31, 2022, were $1.05 billion, compared to $1.08 billion at September 30, 2022, and $1.22 billion at December 31, 2021. Also, at December 31, 2022, goodwill and other intangible assets totaled $337.1 million compared to $337.9 million at September 30, 2022, and $342.1 million at December 31, 2021, with the decreases attributable to intangibles amortization.

Total non-brokered deposits at December 31, 2022, were $6.76 billion, compared with $6.66 billion at September 30, 2022, and $6.28 billion at December 31, 2021. At December 31, 2022, customer deposits grew $100.4 million organically, or 6.0% annualized from the prior quarter and $481.0 million or 7.7% from December 31, 2021. Brokered deposits were $143.7 million at December 31, 2022, compared to $69.9 million at September 30, 2022 and none at December 31, 2021.

Total stockholders’ equity was $0.89 billion at December 31, 2022, compared to $0.86 billion at September 30, 2022, and $1.02 billion at December 31, 2021. The quarterly increase in stockholders’ equity was primarily due to net earnings after dividends. The year-over-year decrease was primarily due to a decrease in accumulated other comprehensive income (“AOCI”), which was primarily related to a $138 million negative valuation adjustment on the available-for-sale securities portfolio. At December 31, 2022, 1,200,025 common shares remained available for repurchase under the Company’s existing repurchase program.

Insurance Agency Acquisition

On December 30, 2022, Premier, through its wholly owned subsidiary First Insurance Group of the Midwest, Inc. (“FIG”), completed the acquisition of Benham Insurance Associates, Inc. (“BIA”), a property and casualty insurance agency. Located in Holland, Ohio, with annual revenues of approximately $0.2 million, BIA will be added to Premier’s FIG platform.

Dividend to be paid February 17

The Board of Directors declared a quarterly cash dividend of $0.31 per common share payable February 17, 2023, to shareholders of record at the close of business on February 10, 2023. The dividend represents an annual dividend of 4.5 percent based on the Premier common stock closing price on January 23, 2022. Premier has approximately 35,602,000 common shares outstanding.

Conference call

Premier will host a conference call at 11:00 a.m. ET on Wednesday, January 25, 2023, to discuss the earnings results and business trends. The conference call may be accessed by calling 1-844-200-6205 and using access code 105871. Internet access to the call is also available (in listen-only mode) at the following URL: https://events.q4inc.com/attendee/815175646. The webcast replay of the conference call will be available at www.PremierFinCorp.com for one year.

About Premier Financial Corp.

Premier Financial Corp. (Nasdaq: PFC), headquartered in Defiance, Ohio, is the holding company for Premier Bank and First Insurance Group. Premier Bank, headquartered in Youngstown, Ohio, operates 74 branches and 12 loan offices in Ohio, Michigan, Indiana, Pennsylvania and West Virginia (West Virginia office operates as Home Savings Bank) and serves clients through a team of wealth professionals dedicated to each community banking branch. First Insurance Group is a full-service insurance agency with ten offices in Ohio. For more information, visit the company’s website at PremierFinCorp.com.

Financial Statements and Highlights Follow-

Safe Harbor Statement

This document may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These statements may include, but are not limited to, statements regarding projections, forecasts, goals and plans of Premier Financial Corp. and its management, future movements of interests, loan or deposit production levels, future credit quality ratios, future strength in the market area, and growth projections. These statements do not describe historical or current facts and may be identified by words such as “intend,” “intent,” “believe,” “expect,” “estimate,” “target,” “plan,” “anticipate,” or similar words or phrases, or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “may,” “can,” or similar verbs. There can be no assurances that the forward-looking statements included in this presentation will prove to be accurate. In light of the significant uncertainties in the forward-looking statements, the inclusion of such information should not be regarded as a representation by Premier or any other persons, that our objectives and plans will be achieved. Forward-looking statements involve numerous risks and uncertainties, any one or more of which could affect Premier’s business and financial results in future periods and could cause actual results to differ materially from plans and projections. These risks and uncertainties include, but not limited to: impacts from the novel coronavirus (COVID-19) pandemic on the economy, financial markets, our customers, and our business and results of operation; changes in interest rates; disruptions in the mortgage market; risks and uncertainties inherent in general and local banking, insurance and mortgage conditions; political uncertainty; uncertainty in U.S. fiscal or monetary policy; uncertainty concerning or disruptions relating to tensions surrounding the current socioeconomic landscape; competitive factors specific to markets in which Premier operates; increasing competition for financial products from other financial institutions and nonbank financial technology companies; legislative or regulatory rulemaking or actions; capital market conditions; security breaches or unauthorized disclosure of confidential customer or Company information; interruptions in the effective operation of information and transaction processing systems of Premier or Premier’s vendors and service providers; failures or delays in integrating or adopting new technology; the impact of the cessation of LIBOR interest rates and implementation of a replacement rate; and other risks and uncertainties detailed from time to time in our Securities and Exchange Commission (SEC) filings, including our Annual Report on Form 10-K for the year ended December 31, 2021 and any further amendments thereto. All forward-looking statements made in this presentation are based on information presently available to the management of Premier and speak only as of the date on which they are made. We assume no obligation to update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as may be required by law. As required by U.S. GAAP, Premier will evaluate the impact of subsequent events through the issuance date of its December 31, 2022, consolidated financial statements as part of its Annual Report on Form 10-K to be filed with the SEC. Accordingly, subsequent events could occur that may cause Premier to update its critical accounting estimates and to revise its financial information from that which is contained in this news release.

Non-GAAP Reporting Measures

We believe that net income, as defined by U.S. GAAP, is the most appropriate earnings measurement. However, we consider core net interest income to be a useful supplemental measure of our operating performance. We define core net interest income as net interest income on a tax-equivalent basis excluding income from PPP loans and purchase accounting marks accretion. We believe that this metric is a useful supplemental measure of operating performance because investors and equity analysts may use this measure to compare the operating performance of the Company between periods or as compared to other financial institutions or other companies on a consistent basis without having to account for income from PPP loans and purchase accounting marks accretion. Our supplemental reporting measures and similarly entitled financial measures are widely used by investors, equity and debt analysts and ratings agencies in the valuation, comparison, rating and investment recommendations of companies. Our management uses these financial measures to facilitate internal and external comparisons to historical operating results and in making operating decisions. Additionally, they are utilized by the Board of Directors to evaluate management. The supplemental reporting measures do not represent net income or cash flow provided from operating activities as determined in accordance with U.S. GAAP and should not be considered as alternative measures of profitability or liquidity. Finally, the supplemental reporting measures, as defined by us, may not be comparable to similarly entitled items reported by other financial institutions or other companies. Please see the exhibits for reconciliations of our supplemental reporting measures.

 
Consolidated Balance Sheets (Unaudited)
Premier Financial Corp.
 
December 31, September 30, June 30, March 31, December 31,
(in thousands)

2022

2022

2022

2022

2021

 
Assets
Cash and cash equivalents
Cash and amounts due from depositories

$

88,257

 

$

67,124

 

$

62,080

 

$

62,083

 

$

54,858

 

Interest-bearing deposits

 

39,903

 

 

37,868

 

 

72,314

 

 

91,683

 

 

106,708

 

 

128,160

 

 

104,992

 

 

134,394

 

 

153,766

 

 

161,566

 

 
Available-for-sale, carried at fair value

 

1,040,081

 

 

1,063,713

 

 

1,140,466

 

 

1,219,365

 

 

1,206,260

 

Equity securities, carried at fair value

 

7,832

 

 

15,336

 

 

13,293

 

 

13,454

 

 

14,097

 

Securities investments

 

1,047,913

 

 

1,079,049

 

 

1,153,759

 

 

1,232,819

 

 

1,220,357

 

 
Loans (1)

 

6,460,620

 

 

6,207,708

 

 

5,890,823

 

 

5,388,331

 

 

5,296,168

 

Allowance for credit losses - loans

 

(72,816

)

 

(70,626

)

 

(67,074

)

 

(67,195

)

 

(66,468

)

Loans, net

 

6,387,804

 

 

6,137,082

 

 

5,823,749

 

 

5,321,136

 

 

5,229,700

 

Loans held for sale

 

115,251

 

 

129,142

 

 

145,092

 

 

153,498

 

 

162,947

 

Mortgage servicing rights

 

21,171

 

 

20,832

 

 

20,693

 

 

20,715

 

 

19,538

 

Accrued interest receivable

 

28,709

 

 

26,021

 

 

22,533

 

 

21,765

 

 

20,767

 

Federal Home Loan Bank stock

 

29,185

 

 

28,262

 

 

23,991

 

 

15,332

 

 

11,585

 

Bank Owned Life Insurance

 

170,713

 

 

169,728

 

 

168,746

 

 

167,763

 

 

166,767

 

Office properties and equipment

 

55,541

 

 

53,747

 

 

54,060

 

 

54,684

 

 

55,602

 

Real estate and other assets held for sale

 

619

 

 

416

 

 

462

 

 

253

 

 

171

 

Goodwill

 

317,988

 

 

317,948

 

 

317,948

 

 

317,948

 

 

317,948

 

Core deposit and other intangibles

 

19,074

 

 

19,972

 

 

21,311

 

 

22,691

 

 

24,129

 

Other assets

 

133,214

 

 

148,949

 

 

123,886

 

 

108,510

 

 

90,325

 

Total Assets

$

8,455,342

 

$

8,236,140

 

$

8,010,624

 

$

7,590,880

 

$

7,481,402

 

 
Liabilities and Stockholders’ Equity
Non-interest-bearing deposits

$

1,869,509

 

$

1,826,511

 

$

1,786,516

 

$

1,733,157

 

$

1,724,772

 

Interest-bearing deposits

 

4,893,502

 

 

4,836,113

 

 

4,729,828

 

 

4,584,078

 

 

4,557,279

 

Brokered deposits

 

143,708

 

 

69,881

 

 

-

 

 

-

 

 

-

 

Total deposits

 

6,906,719

 

 

6,732,505

 

 

6,516,344

 

 

6,317,235

 

 

6,282,051

 

Advances from FHLB

 

428,000

 

 

411,000

 

 

380,000

 

 

150,000

 

 

-

 

Notes payable and other interest-bearing liabilities

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Subordinated debentures

 

85,103

 

 

85,071

 

 

85,039

 

 

85,008

 

 

84,976

 

Advance payments by borrowers

 

34,188

 

 

33,511

 

 

40,344

 

 

20,332

 

 

24,716

 

Reserve for credit losses - unfunded commitments

 

6,816

 

 

7,061

 

 

6,755

 

 

5,340

 

 

5,031

 

Other liabilities

 

106,795

 

 

102,032

 

 

80,995

 

 

69,669

 

 

61,132

 

Total Liabilities

 

7,567,621

 

 

7,371,180

 

 

7,109,477

 

 

6,647,584

 

 

6,457,906

 

Stockholders’ Equity
Preferred stock

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Common stock, net

 

306

 

 

306

 

 

306

 

 

306

 

 

306

 

Additional paid-in-capital

 

691,453

 

 

691,578

 

 

690,905

 

 

691,350

 

 

691,132

 

Accumulated other comprehensive income (loss)

 

(173,460

)

 

(181,231

)

 

(126,754

)

 

(75,497

)

 

(3,428

)

Retained earnings

 

502,909

 

 

488,305

 

 

470,779

 

 

459,087

 

 

443,517

 

Treasury stock, at cost

 

(133,487

)

 

(133,998

)

 

(134,089

)

 

(131,950

)

 

(108,031

)

Total Stockholders’ Equity

 

887,721

 

 

864,960

 

 

901,147

 

 

943,296

 

 

1,023,496

 

Total Liabilities and Stockholders’ Equity

$

8,455,342

 

$

8,236,140

 

$

8,010,624

 

$

7,590,880

 

$

7,481,402

 

 
(1) Includes PPP loans of:

$

1,143

 

$

1,181

 

$

4,561

 

$

18,660

 

$

58,906

 

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

$

72,194

 

$

65,559

 

$

56,567

 

$

55,241

 

$

55,007

 

$

249,561

 

$

223,787

 

Investment securities

 

7,605

 

 

6,814

 

 

6,197

 

 

5,479

 

 

5,369

 

 

26,095

 

 

19,369

 

Interest-bearing deposits

 

444

 

 

221

 

 

120

 

 

46

 

 

56

 

 

831

 

 

198

 

FHLB stock dividends

 

482

 

 

510

 

 

174

 

 

59

 

 

58

 

 

1,225

 

 

233

 

Total interest income

 

80,725

 

 

73,104

 

 

63,058

 

 

60,825

 

 

60,490

 

 

277,712

 

 

243,587

 

Interest Expense:
Deposits

 

13,161

 

 

6,855

 

 

2,671

 

 

2,222

 

 

2,615

 

 

24,909

 

 

13,482

 

FHLB advances

 

3,941

 

 

2,069

 

 

527

 

 

13

 

 

-

 

 

6,550

 

 

23

 

Subordinated debentures

 

1,000

 

 

868

 

 

763

 

 

696

 

 

673

 

 

3,327

 

 

2,713

 

Notes Payable

 

4

 

 

-

 

 

1

 

 

-

 

 

-

 

 

5

 

 

-

 

Total interest expense

 

18,106

 

 

9,792

 

 

3,962

 

 

2,931

 

 

3,288

 

 

34,791

 

 

16,218

 

Net interest income

 

62,619

 

 

63,312

 

 

59,096

 

 

57,894

 

 

57,202

 

 

242,921

 

 

227,369

 

Provision (benefit) for credit losses - loans

 

3,020

 

 

3,706

 

 

5,151

 

 

626

 

 

2,816

 

 

12,503

 

 

(6,733

)

Provision (benefit) for credit losses - unfunded commitments

 

(246

)

 

306

 

 

1,415

 

 

309

 

 

(807

)

 

1,784

 

 

(319

)

Total provision (benefit) for credit losses

 

2,774

 

 

4,012

 

 

6,566

 

 

935

 

 

2,009

 

 

14,287

 

 

(7,052

)

Net interest income after provision

 

59,845

 

 

59,300

 

 

52,530

 

 

56,959

 

 

55,193

 

 

228,634

 

 

234,421

 

Non-interest Income:
Service fees and other charges

 

6,632

 

 

6,545

 

 

6,676

 

 

6,000

 

 

6,351

 

 

25,853

 

 

24,168

 

Mortgage banking income

 

(299

)

 

3,970

 

 

1,948

 

 

4,252

 

 

3,060

 

 

9,871

 

 

21,925

 

Gain (loss) on sale of available for sale securities

 

1

 

 

-

 

 

-

 

 

-

 

 

-

 

 

1

 

 

2,218

 

Gain (loss) on equity securities

 

1,209

 

 

43

 

 

(1,161

)

 

(643

)

 

1,132

 

 

(551

)

 

1,954

 

Insurance commissions

 

3,576

 

 

3,488

 

 

4,334

 

 

4,639

 

 

3,379

 

 

16,228

 

 

15,780

 

Wealth management income

 

1,582

 

 

1,355

 

 

1,414

 

 

1,477

 

 

1,383

 

 

5,828

 

 

6,027

 

Income from Bank Owned Life Insurance

 

984

 

 

983

 

 

983

 

 

996

 

 

2,145

 

 

3,946

 

 

5,121

 

Other non-interest income

 

543

 

 

320

 

 

171

 

 

142

 

 

129

 

 

984

 

 

2,133

 

Total Non-interest Income

 

14,228

 

 

16,704

 

 

14,365

 

 

16,863

 

 

17,579

 

 

62,160

 

 

79,326

 

Non-interest Expense:
Compensation and benefits

 

24,999

 

 

24,522

 

 

22,334

 

 

25,541

 

 

24,247

 

 

97,396

 

 

90,646

 

Occupancy

 

3,383

 

 

3,463

 

 

3,494

 

 

3,700

 

 

3,859

 

 

14,039

 

 

15,501

 

FDIC insurance premium

 

1,276

 

 

976

 

 

802

 

 

593

 

 

781

 

 

3,647

 

 

2,896

 

Financial institutions tax

 

795

 

 

1,050

 

 

1,074

 

 

1,191

 

 

526

 

 

4,110

 

 

4,079

 

Data processing

 

3,882

 

 

3,121

 

 

3,442

 

 

3,335

 

 

3,447

 

 

13,780

 

 

13,550

 

Amortization of intangibles

 

1,293

 

 

1,338

 

 

1,380

 

 

1,438

 

 

1,483

 

 

5,450

 

 

6,208

 

Other non-interest expense

 

7,400

 

 

6,629

 

 

6,563

 

 

5,497

 

 

7,145

 

 

26,089

 

 

24,444

 

Total Non-interest Expense

 

43,028

 

 

41,099

 

 

39,089

 

 

41,295

 

 

41,488

 

 

164,511

 

 

157,324

 

Income before income taxes

 

31,045

 

 

34,905

 

 

27,806

 

 

32,527

 

 

31,284

 

 

126,283

 

 

156,423

 

Income tax expense

 

5,770

 

 

6,710

 

 

5,446

 

 

6,170

 

 

5,974

 

 

24,096

 

 

30,372

 

Net Income

$

25,275

 

$

28,195

 

$

22,360

 

$

26,357

 

$

25,310

 

$

102,187

 

$

126,051

 

 
Earnings per common share:
Basic

$

0.71

 

$

0.79

 

$

0.63

 

$

0.73

 

$

0.69

 

$

2.86

 

$

3.39

 

Diluted

$

0.71

 

$

0.79

 

$

0.63

 

$

0.73

 

$

0.69

 

$

2.85

 

$

3.39

 

 
Average Shares Outstanding:
Basic

 

35,589

 

 

35,582

 

 

35,560

 

 

35,978

 

 

36,740

 

 

35,679

 

 

37,109

 

Diluted

 

35,790

 

 

35,704

 

 

35,682

 

 

36,090

 

 

36,848

 

 

35,809

 

 

37,200

 

 
Premier Financial Corp.
Selected Quarterly Information
 
(dollars in thousands,

except per share data)

4Q22

3Q22

2Q22

1Q22

4Q21

YTD 2022 YTD 2021
Summary of Operations
Tax-equivalent interest income (1)

$

80,889

 

$

73,301

 

$

63,283

 

$

61,054

 

$

60,740

 

$

278,526

 

$

244,600

 

Interest expense

 

18,106

 

 

9,792

 

 

3,962

 

 

2,931

 

 

3,288

 

 

34,791

 

 

16,218

 

Tax-equivalent net interest income (1)

 

62,783

 

 

63,509

 

 

59,321

 

 

58,123

 

 

57,452

 

 

243,735

 

 

228,382

 

Provision expense (benefit) for credit losses

 

2,774

 

 

4,012

 

 

6,566

 

 

935

 

 

2,009

 

 

14,287

 

 

(7,052

)

Investment securities gains (losses)

 

1,210

 

 

43

 

 

(1,161

)

 

(643

)

 

1,132

 

 

(550

)

 

4,172

 

Non-interest income (ex securities gains/losses)

 

13,018

 

 

16,661

 

 

15,526

 

 

17,506

 

 

16,447

 

 

62,710

 

 

75,154

 

Non-interest expense

 

43,028

 

 

41,099

 

 

39,089

 

 

41,295

 

 

41,488

 

 

164,511

 

 

157,324

 

Income tax expense

 

5,770

 

 

6,710

 

 

5,446

 

 

6,170

 

 

5,974

 

 

24,096

 

 

30,372

 

Net income

 

25,275

 

 

28,195

 

 

22,360

 

 

26,357

 

 

25,310

 

 

102,187

 

 

126,051

 

Tax equivalent adjustment (1)

 

164

 

 

197

 

 

225

 

 

229

 

 

250

 

 

814

 

 

1,013

 

At Period End
Total assets

$

8,455,342

 

$

8,236,140

 

$

8,010,624

 

$

7,590,880

 

$

7,481,402

 

Goodwill and intangibles

 

337,062

 

 

337,920

 

 

339,259

 

 

340,639

 

 

342,077

 

Tangible assets (2)

 

8,118,280

 

 

7,898,220

 

 

7,671,365

 

 

7,250,241

 

 

7,139,325

 

Earning assets

 

7,620,056

 

 

7,411,403

 

 

7,218,905

 

 

6,881,663

 

 

6,797,765

 

Loans

 

6,460,620

 

 

6,207,708

 

 

5,890,823

 

 

5,388,331

 

 

5,296,168

 

Allowance for loan losses

 

72,816

 

 

70,626

 

 

67,074

 

 

67,195

 

 

66,468

 

Deposits

 

6,906,719

 

 

6,732,505

 

 

6,516,344

 

 

6,317,235

 

 

6,282,051

 

Stockholders’ equity

 

887,721

 

 

864,960

 

 

901,147

 

 

943,296

 

 

1,023,496

 

Stockholders’ equity / assets

 

10.50

%

 

10.50

%

 

11.25

%

 

12.43

%

 

13.68

%

Tangible equity (2)

 

550,659

 

 

527,040

 

 

561,888

 

 

602,657

 

 

681,419

 

Tangible equity / tangible assets

 

6.78

%

 

6.67

%

 

7.32

%

 

8.31

%

 

9.54

%

Average Balances
Total assets

$

8,304,462

 

$

8,161,389

 

$

7,742,550

 

$

7,541,414

 

$

7,510,397

 

$

7,932,398

 

$

7,482,578

 

Earning assets

 

7,653,648

 

 

7,477,795

 

 

7,051,661

 

 

6,754,862

 

 

6,736,250

 

 

7,237,621

 

 

6,732,178

 

Loans

 

6,359,564

 

 

6,120,324

 

 

5,667,853

 

 

5,382,825

 

 

5,356,113

 

 

5,885,969

 

 

5,473,668

 

Deposits and interest-bearing liabilities

 

7,278,531

 

 

7,116,910

 

 

6,706,250

 

 

6,415,483

 

 

6,386,341

 

 

6,882,309

 

 

6,385,080

 

Deposits

 

6,773,382

 

 

6,654,328

 

 

6,385,857

 

 

6,314,217

 

 

6,301,384

 

 

6,533,539

 

 

6,287,531

 

Stockholders’ equity

 

875,287

 

 

912,224

 

 

921,847

 

 

1,033,816

 

 

1,035,717

 

 

927,534

 

 

1,009,037

 

Goodwill and intangibles

 

337,207

 

 

338,583

 

 

339,932

 

 

341,353

 

 

342,853

 

 

339,255

 

 

345,187

 

Tangible equity (2)

 

538,080

 

 

573,641

 

 

581,915

 

 

692,463

 

 

692,864

 

 

588,279

 

 

663,850

 

Per Common Share Data
Net Income (Loss):
Basic

$

0.71

 

$

0.79

 

$

0.63

 

$

0.73

 

$

0.69

 

$

2.86

 

$

3.39

 

Diluted

 

0.71

 

 

0.79

 

 

0.63

 

 

0.73

 

 

0.69

 

 

2.85

 

 

3.39

 

Dividends Paid

 

0.30

 

 

0.30

 

 

0.30

 

 

0.30

 

 

0.28

 

 

1.20

 

 

1.05

 

Market Value:
High

$

30.51

 

$

29.36

 

$

30.13

 

$

32.52

 

$

34.00

 

$

32.52

 

$

35.90

 

Low

 

26.11

 

 

24.67

 

 

25.31

 

 

28.58

 

 

28.75

 

 

24.67

 

 

22.23

 

Close

 

26.97

 

 

25.70

 

 

25.35

 

 

30.33

 

 

30.91

 

 

26.97

 

 

30.91

 

Common Book Value

 

24.94

 

 

24.32

 

 

25.35

 

 

26.48

 

 

28.13

 

Tangible Common Book Value (2)

 

15.47

 

 

14.82

 

 

15.80

 

 

16.92

 

 

18.73

 

Shares outstanding, end of period (000s)

 

35,591

 

 

35,563

 

 

35,555

 

 

35,621

 

 

36,384

 

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

 

3.28

%

 

3.40

%

 

3.36

%

 

3.44

%

 

3.41

%

 

3.37

%

 

3.39

%

Return on average assets

 

1.21

%

 

1.37

%

 

1.16

%

 

1.42

%

 

1.34

%

 

1.29

%

 

1.68

%

Return on average equity

 

11.46

%

 

12.26

%

 

9.73

%

 

10.34

%

 

9.70

%

 

11.02

%

 

12.49

%

Return on average tangible equity

 

18.64

%

 

19.50

%

 

15.41

%

 

15.44

%

 

14.49

%

 

17.37

%

 

18.99

%

Efficiency ratio (3)

 

56.76

%

 

51.26

%

 

52.23

%

 

54.60

%

 

56.14

%

 

53.68

%

 

51.83

%

Effective tax rate

 

18.59

%

 

19.22

%

 

19.59

%

 

18.97

%

 

19.10

%

 

19.08

%

 

19.42

%

Common dividend payout ratio

 

42.25

%

 

37.97

%

 

47.62

%

 

41.10

%

 

40.58

%

 

42.11

%

 

30.97

%

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

$

6,359,564

 

$

6,120,324

 

$

5,667,853

 

$

5,382,825

 

$

5,356,113

 

$

5,885,969

 

$

5,473,668

 

Securities

 

1,235,814

 

 

1,261,527

 

 

1,288,073

 

 

1,250,321

 

 

1,245,096

 

 

1,258,901

 

 

1,135,434

 

Interest Bearing Deposits

 

29,884

 

 

68,530

 

 

76,401

 

 

109,757

 

 

123,456

 

 

70,917

 

 

111,433

 

FHLB stock

 

28,386

 

 

27,414

 

 

19,334

 

 

11,959

 

 

11,585

 

 

21,834

 

 

11,643

 

Total interest-earning assets

 

7,653,648

 

 

7,477,795

 

 

7,051,661

 

 

6,754,862

 

 

6,736,250

 

 

7,237,621

 

 

6,732,178

 

Non-interest-earning assets

 

650,814

 

 

683,594

 

 

690,889

 

 

786,552

 

 

774,147

 

 

694,777

 

 

750,400

 

Total assets

$

8,304,462

 

$

8,161,389

 

$

7,742,550

 

$

7,541,414

 

$

7,510,397

 

$

7,932,398

 

$

7,482,578

 

Deposits and Interest-bearing Liabilities:
Interest bearing deposits

$

4,901,412

 

$

4,846,419

 

$

4,614,223

 

$

4,600,801

 

$

4,609,064

 

$

4,741,827

 

$

4,611,525

 

FHLB advances and other

 

419,761

 

 

377,533

 

 

234,945

 

 

16,278

 

 

-

 

 

263,551

 

 

12,586

 

Subordinated debentures

 

85,084

 

 

85,049

 

 

85,020

 

 

84,988

 

 

84,957

 

 

85,036

 

 

84,911

 

Notes payable

 

304

 

 

-

 

 

428

 

 

-

 

 

-

 

 

183

 

 

52

 

Total interest-bearing liabilities

 

5,406,561

 

 

5,309,001

 

 

4,934,616

 

 

4,702,067

 

 

4,694,021

 

 

5,090,597

 

 

4,709,074

 

Non-interest bearing deposits

 

1,871,970

 

 

1,807,909

 

 

1,771,634

 

 

1,713,416

 

 

1,692,320

 

 

1,791,712

 

 

1,676,006

 

Total including non-interest-bearing deposits

 

7,278,531

 

 

7,116,910

 

 

6,706,250

 

 

6,415,483

 

 

6,386,341

 

 

6,882,309

 

 

6,385,080

 

Other non-interest-bearing liabilities

 

150,644

 

 

132,255

 

 

114,453

 

 

92,115

 

 

88,339

 

 

122,555

 

 

88,461

 

Total liabilities

 

7,429,175

 

 

7,249,165

 

 

6,820,703

 

 

6,507,598

 

 

6,474,680

 

 

7,004,864

 

 

6,473,541

 

Stockholders' equity

 

875,287

 

 

912,224

 

 

921,847

 

 

1,033,816

 

 

1,035,717

 

 

927,534

 

 

1,009,037

 

Total liabilities and stockholders' equity

$

8,304,462

 

$

8,161,389

 

$

7,742,550

 

$

7,541,414

 

$

7,510,397

 

$

7,932,398

 

$

7,482,578

 

Average interest-earning assets to interest-bearing liabilities

 

142

%

 

141

%

 

143

%

 

144

%

 

144

%

 

142

%

 

143

%

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

$

72,201

 

$

65,564

 

$

56,573

 

$

55,248

 

$

55,013

 

$

249,586

 

$

223,823

 

Securities (2)

 

7,762

 

 

7,006

 

 

6,416

 

 

5,701

 

 

5,612

 

 

26,884

 

 

20,346

 

Interest Bearing Deposits

 

444

 

 

221

 

 

120

 

 

46

 

 

56

 

 

831

 

 

198

 

FHLB stock

 

482

 

 

510

 

 

174

 

 

59

 

 

59

 

 

1,225

 

 

233

 

Total interest-earning assets

 

80,889

 

 

73,301

 

 

63,283

 

 

61,054

 

 

60,740

 

 

278,526

 

 

244,600

 

Deposits and Interest-bearing Liabilities:
Interest bearing deposits

$

13,161

 

$

6,855

 

$

2,671

 

$

2,222

 

$

2,615

 

$

24,909

 

$

13,482

 

FHLB advances and other

 

3,941

 

 

2,069

 

 

527

 

 

13

 

 

-

 

 

6,550

 

 

23

 

Subordinated debentures

 

1,001

 

 

868

 

 

763

 

 

696

 

 

673

 

 

3,327

 

 

2,713

 

Notes payable

 

3

 

 

-

 

 

1

 

 

-

 

 

-

 

 

5

 

 

-

 

Total interest-bearing liabilities

 

18,106

 

 

9,792

 

 

3,962

 

 

2,931

 

 

3,288

 

 

34,791

 

 

16,218

 

Non-interest bearing deposits

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Total including non-interest-bearing deposits

 

18,106

 

 

9,792

 

 

3,962

 

 

2,931

 

 

3,288

 

 

34,791

 

 

16,218

 

Net interest income

$

62,783

 

$

63,509

 

$

59,321

 

$

58,123

 

$

57,452

 

$

243,735

 

$

228,382

 

Less: PPP income

 

(6

)

 

(26

)

 

(160

)

 

(3,641

)

 

(2,686

)

 

(3,833

)

 

(14,544

)

Less: Acquisition marks accretion

 

(554

)

 

(608

)

 

(706

)

 

(737

)

 

(1,595

)

 

(2,606

)

 

(5,869

)

Core net interest income

$

62,223

 

$

62,875

 

$

58,455

 

$

53,745

 

$

53,171

 

$

237,296

 

$

207,969

 

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

 

4.54

%

 

4.29

%

 

3.99

%

 

4.11

%

 

4.11

%

 

4.24

%

 

4.09

%

Securities (4)

 

2.51

%

 

2.22

%

 

1.99

%

 

1.82

%

 

1.80

%

 

2.14

%

 

1.79

%

Interest Bearing Deposits

 

5.94

%

 

1.29

%

 

0.63

%

 

0.17

%

 

0.18

%

 

1.17

%

 

0.18

%

FHLB stock

 

6.79

%

 

7.44

%

 

3.60

%

 

1.97

%

 

2.04

%

 

5.61

%

 

2.00

%

Total interest-earning assets

 

4.23

%

 

3.92

%

 

3.59

%

 

3.62

%

 

3.61

%

 

3.85

%

 

3.63

%

Deposits and Interest-bearing Liabilities:
Interest bearing deposits

 

1.07

%

 

0.57

%

 

0.23

%

 

0.19

%

 

0.23

%

 

0.53

%

 

0.29

%

FHLB advances and other

 

3.76

%

 

2.19

%

 

0.90

%

 

0.32

%

 

0.00

%

 

2.49

%

 

0.18

%

Subordinated debentures

 

4.71

%

 

4.08

%

 

3.59

%

 

3.28

%

 

3.17

%

 

3.91

%

 

3.20

%

Notes payable

 

3.95

%

 

-

 

 

0.93

%

 

-

 

 

-

 

 

2.73

%

 

0.75

%

Total interest-bearing liabilities

 

1.34

%

 

0.74

%

 

0.32

%

 

0.25

%

 

0.28

%

 

0.68

%

 

0.37

%

Non-interest bearing deposits

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Total including non-interest-bearing deposits

 

1.00

%

 

0.55

%

 

0.24

%

 

0.18

%

 

0.21

%

 

0.51

%

 

0.25

%

Net interest spread

 

2.89

%

 

3.18

%

 

3.27

%

 

3.37

%

 

3.33

%

 

3.17

%

 

3.29

%

Net interest margin (5)

 

3.28

%

 

3.40

%

 

3.36

%

 

3.44

%

 

3.41

%

 

3.37

%

 

3.39

%

Core net interest margin (5)

 

3.25

%

 

3.36

%

 

3.32

%

 

3.20

%

 

3.21

%

 

3.28

%

 

3.24

%

 
(1) Includes average PPP loans of:

$

1,160

 

$

1,889

 

$

12,966

 

$

32,853

 

$

101,804

 

$

12,102

 

$

282,693

 

 

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

4Q22

3Q22

2Q22

1Q22

4Q21

Loan Portfolio Composition
Residential real estate

$

1,535,574

$

1,478,360

$

1,382,202

$

1,222,057

$

1,167,466

Residential real estate construction

 

176,737

 

119,204

 

85,256

 

97,746

 

121,621

Total residential loans

 

1,712,311

 

1,597,564

 

1,467,458

 

1,319,803

 

1,289,087

 
Commercial real estate

 

2,762,311

 

2,674,078

 

2,655,730

 

2,495,469

 

2,450,349

Commercial construction

 

428,743

 

398,044

 

319,590

 

260,421

 

263,304

Commercial excluding PPP

 

1,054,037

 

1,041,423

 

987,242

 

891,893

 

836,732

Core commercial loans (1)

 

4,245,091

 

4,113,545

 

3,962,562

 

3,647,783

 

3,550,385

 
Consumer direct/indirect

 

213,405

 

212,790

 

180,539

 

132,294

 

126,417

Home equity and improvement lines

 

277,613

 

272,367

 

266,144

 

261,176

 

264,354

Total consumer loans

 

491,018

 

485,157

 

446,683

 

393,470

 

390,771

 
Deferred loan origination fees

 

11,057

 

10,261

 

9,559

 

8,615

 

7,019

Core loans (1)

 

6,459,477

 

6,206,527

 

5,886,262

 

5,369,671

 

5,237,262

PPP loans

 

1,143

 

1,181

 

4,561

 

18,660

 

58,906

Total loans

$

6,460,620

$

6,207,708

$

5,890,823

$

5,388,331

$

5,296,168

 
Loans held for sale

$

115,251

$

129,142

$

145,092

$

153,498

$

162,947

Core residential loans (1)

 

1,827,562

 

1,726,706

 

1,612,550

 

1,473,301

 

1,452,034

Total loans including loans held for sale but excluding PPP

 

6,574,728

 

6,335,669

 

6,031,354

 

5,523,169

 

5,400,209

 
Undisbursed construction loan funds - residential

$

209,306

$

231,598

$

239,748

$

210,702

$

204,772

Undisbursed construction loan funds - commercial

 

463,469

 

493,199

 

449,101

 

314,843

 

273,118

Undisbursed construction loan funds - total

 

672,775

 

724,797

 

688,849

 

525,545

 

477,890

Total construction loans including undisbursed funds

$

1,278,255

$

1,242,045

$

1,093,695

$

883,712

$

862,815

Gross loans (2)

$

7,122,338

$

6,922,244

$

6,570,113

$

5,905,261

$

5,767,039

 
Deposit Portfolio Composition
Non-interest-bearing demand deposits

$

1,869,509

$

1,826,511

$

1,786,516

$

1,733,157

$

1,724,772

Interest-bearing demand deposits

 

1,048,666

 

1,084,550

 

1,060,308

 

1,135,088

 

1,015,795

Savings deposits

 

798,003

 

820,650

 

832,859

 

830,143

 

804,451

Money market account deposits

 

2,136,774

 

2,112,905

 

2,045,998

 

1,894,172

 

1,936,910

Retail time deposits less than $250

 

645,318

 

550,275

 

532,836

 

586,967

 

636,477

Retail time deposits greater than $250

 

264,741

 

267,733

 

257,827

 

137,708

 

163,646

Brokered deposits

 

143,708

 

69,881

 

-

 

-

 

-

Total deposits

$

6,906,719

$

6,732,505

$

6,516,344

$

6,317,235

$

6,282,051

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

due
% of

Total
Non Accrual

Loans
% of

Total
 
December 31, 2022
One to four family residential real estate

$

1,535,574

$

1,520,074

$

6,792

0.4

%

$

8,708

0.6

%

Construction

 

1,278,255

 

1,277,818

 

437

0.0

%

 

-

0.0

%

Commercial real estate

 

2,762,311

 

2,747,539

 

1,205

0.0

%

 

13,567

0.5

%

Commercial

 

1,055,180

 

1,047,829

 

497

0.0

%

 

6,854

0.6

%

Home equity and improvement

 

277,613

 

270,138

 

5,216

1.9

%

 

2,259

0.8

%

Consumer finance

 

213,405

 

206,779

 

4,192

2.0

%

 

2,434

1.1

%

Gross loans

$

7,122,338

$

7,070,177

$

18,339

0.3

%

$

33,822

0.5

%

 
September 30, 2022
One to four family residential real estate

$

1,478,360

$

1,464,319

$

6,232

0.4

%

$

7,809

0.5

%

Construction

 

1,242,045

 

1,242,045

 

-

0.0

%

 

-

0.0

%

Commercial real estate

 

2,674,078

 

2,660,068

 

116

0.0

%

 

13,894

0.5

%

Commercial

 

1,042,604

 

1,034,898

 

338

0.0

%

 

7,368

0.7

%

Home equity and improvement

 

272,367

 

267,077

 

3,144

1.2

%

 

2,146

0.8

%

Consumer finance

 

212,790

 

207,453

 

3,417

1.6

%

 

1,920

0.9

%

Gross loans

$

6,922,244

$

6,875,860

$

13,247

0.2

%

$

33,137

0.5

%

 
December 31, 2021
One to four family residential real estate

$

1,167,466

$

1,149,333

$

6,212

0.5

%

$

11,921

1.0

%

Construction

 

862,815

 

861,326

 

1,489

0.2

%

 

-

0.0

%

Commercial real estate

 

2,450,349

 

2,435,491

 

15

0.0

%

 

14,843

0.6

%

Commercial

 

895,638

 

879,521

 

76

0.0

%

 

16,041

1.8

%

Home equity and improvement

 

264,354

 

258,661

 

2,517

1.0

%

 

3,176

1.2

%

Consumer finance

 

126,417

 

122,361

 

2,023

1.6

%

 

2,033

1.6

%

Gross loans

$

5,767,039

$

5,706,693

$

12,332

0.2

%

$

48,014

0.8

%

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

Total
Classified % of

Total
 
December 31, 2022
One to four family residential real estate

$

1,524,029

$

1,514,719

$

935

0.1

%

$

8,375

0.5

%

Construction

 

1,278,255

 

1,278,255

 

-

0.0

%

 

-

0.0

%

Commercial real estate

 

2,760,766

 

2,694,443

 

46,029

1.7

%

 

20,294

0.7

%

Commercial

 

1,050,122

 

1,016,973

 

26,319

2.5

%

 

6,830

0.7

%

Home equity and improvement

 

275,204

 

273,613

 

-

0.0

%

 

1,591

0.6

%

Consumer finance

 

213,131

 

210,760

 

-

0.0

%

 

2,371

1.1

%

PCD loans

 

20,831

 

13,904

 

2,590

12.4

%

 

4,337

20.8

%

Gross loans

$

7,122,338

$

7,002,667

$

75,873

1.1

%

$

43,798

0.6

%

 
September 30, 2022
One to four family residential real estate

$

1,466,470

$

1,458,082

$

1,267

0.1

%

$

7,121

0.5

%

Construction

 

1,242,045

 

1,240,745

 

1,300

0.1

%

 

-

0.0

%

Commercial real estate

 

2,672,451

 

2,584,984

 

65,233

2.4

%

 

22,234

0.8

%

Commercial

 

1,036,441

 

1,009,384

 

20,106

1.9

%

 

6,951

0.7

%

Home equity and improvement

 

269,786

 

268,384

 

-

0.0

%

 

1,402

0.5

%

Consumer finance

 

212,493

 

210,602

 

-

0.0

%

 

1,891

0.9

%

PCD loans

 

22,558

 

17,044

 

93

0.4

%

 

5,421

24.0

%

Gross loans

$

6,922,244

$

6,789,225

$

87,999

1.3

%

$

45,020

0.7

%

 
December 31, 2021
One to four family residential real estate

$

1,154,070

$

1,142,688

$

1,316

0.1

%

$

10,066

0.9

%

Construction

 

862,815

 

843,293

 

19,522

2.3

%

 

-

0.0

%

Commercial real estate

 

2,444,471

 

2,321,654

 

93,676

3.8

%

 

29,141

1.2

%

Commercial

 

886,472

 

857,905

 

14,815

1.7

%

 

13,752

1.6

%

Home equity and improvement

 

260,948

 

258,914

 

-

0.0

%

 

2,034

0.8

%

Consumer finance

 

125,926

 

124,073

 

-

0.0

%

 

1,853

1.5

%

PCD loans

 

32,337

 

19,547

 

101

0.3

%

 

12,689

39.2

%

Gross loans

$

5,767,039

$

5,568,074

$

129,430

2.2

%

$

69,535

1.2

%

 
Premier Financial Corp.
Selected Quarterly Information
(dollars in thousands)
As of and for the three months ended Twelve months ended
Mortgage Banking Summary 12/31/22 9/30/22 6/30/22 3/31/22 12/31/21 12/31/22 12/31/21
Revenue from sales and servicing of mortgage loans:
Mortgage banking gains, net

$

(1,285

)

$

3,363

 

$

1,166

 

$

2,543

 

$

2,774

 

$

5,787

 

$

16,437

 

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

 

1,862

 

 

1,861

 

 

1,862

 

 

1,879

 

 

1,909

 

 

7,464

 

 

7,574

 

Amortization of mortgage servicing rights

 

(1,271

)

 

(1,350

)

 

(1,375

)

 

(1,403

)

 

(1,774

)

 

(5,399

)

 

(7,892

)

Mortgage servicing rights valuation adjustments

 

396

 

 

96

 

 

295

 

 

1,233

 

 

151

 

 

2,019

 

 

5,806

 

 

987

 

 

607

 

 

782

 

 

1,709

 

 

286

 

 

4,084

 

 

5,488

 

Total revenue from sale/servicing of mortgage loans

$

(298

)

$

3,970

 

$

1,948

 

$

4,252

 

$

3,060

 

$

9,871

 

$

21,925

 

 
Mortgage servicing rights:
Balance at beginning of period

$

21,915

 

$

21,872

 

$

22,189

 

$

22,244

 

$

21,963

 

$

22,244

 

$

21,666

 

Loans sold, servicing retained

 

1,214

 

 

1,393

 

 

1,058

 

 

1,348

 

 

2,056

 

 

5,013

 

 

8,471

 

Amortization

 

(1,271

)

 

(1,350

)

 

(1,375

)

 

(1,403

)

 

(1,774

)

 

(5,399

)

 

(7,893

)

Balance at end of period

 

21,858

 

 

21,915

 

 

21,872

 

 

22,189

 

 

22,245

 

 

21,858

 

 

22,244

 

Valuation allowance:
Balance at beginning of period

 

(1,083

)

 

(1,179

)

 

(1,474

)

 

(2,707

)

 

(2,858

)

 

(2,706

)

 

(8,513

)

Impairment recovery (charges)

 

396

 

 

96

 

 

295

 

 

1,233

 

 

151

 

 

2,019

 

 

5,807

 

Balance at end of period

 

(687

)

 

(1,083

)

 

(1,179

)

 

(1,474

)

 

(2,707

)

 

(687

)

 

(2,706

)

Net carrying value at end of period

$

21,171

 

$

20,832

 

$

20,693

 

$

20,715

 

$

19,538

 

$

21,171

 

$

19,538

 

$

-

 

Allowance Summary
Beginning allowance

$

70,626

 

$

67,074

 

$

67,195

 

$

66,468

 

$

73,217

 

$

66,468

 

$

82,079

 

Provision (benefit) for credit losses - loans

 

3,020

 

 

3,706

 

 

5,151

 

 

626

 

 

2,816

 

 

12,503

 

 

(6,733

)

Net recoveries (charge-offs)

 

(830

)

 

(154

)

 

(5,272

)

 

101

 

 

(9,565

)

 

(6,155

)

 

(8,878

)

Ending allowance

$

72,816

 

$

70,626

 

$

67,074

 

$

67,195

 

$

66,468

 

$

72,816

 

$

66,468

 

 
Total loans

$

6,460,620

 

$

6,207,708

 

$

5,890,823

 

$

5,388,331

 

$

5,296,168

 

Less: PPP loans

 

(1,143

)

 

(1,181

)

 

(4,561

)

 

(18,660

)

 

(58,906

)

Total loans ex PPP

$

6,459,477

 

$

6,206,527

 

$

5,886,262

 

$

5,369,671

 

$

5,237,262

 

 
Allowance for credit losses (ACL)

$

72,816

 

$

70,626

 

$

67,074

 

$

67,195

 

$

66,468

 

Add: Unaccreted purchase accounting marks

 

2,706

 

 

3,291

 

 

3,924

 

 

4,652

 

 

5,418

 

Adjusted ACL

$

75,522

 

$

73,917

 

$

70,998

 

$

71,847

 

$

71,886

 

ACL/Loans

 

1.13

%

 

1.14

%

 

1.14

%

 

1.25

%

 

1.26

%

Adjusted ACL/Loans ex PPP

 

1.17

%

 

1.19

%

 

1.21

%

 

1.34

%

 

1.37

%

 
Credit Quality
Total non-performing loans (1)

$

33,822

 

$

33,137

 

$

34,735

 

$

47,298

 

$

48,014

 

Real estate owned (REO)

 

619

 

 

416

 

 

462

 

 

253

 

 

171

 

Total non-performing assets (2)

$

34,441

 

$

33,553

 

$

35,197

 

$

47,551

 

$

48,185

 

Net charge-offs (recoveries)

 

830

 

 

154

 

 

5,272

 

 

(101

)

 

9,565

 

 
Restructured loans, accruing (3)

 

6,587

 

 

6,909

 

 

5,899

 

 

6,287

 

 

7,768

 

 
Allowance for credit losses - loans / loans

 

1.13

%

 

1.14

%

 

1.14

%

 

1.25

%

 

1.26

%

Allowance for credit losses - loans / non-performing assets

 

211.42

%

 

210.49

%

 

190.57

%

 

141.31

%

 

137.94

%

Allowance for credit losses - loans / non-performing loans

 

215.29

%

 

213.13

%

 

193.10

%

 

142.07

%

 

138.43

%

Non-performing assets / loans plus REO

 

0.53

%

 

0.54

%

 

0.60

%

 

0.88

%

 

0.91

%

Non-performing assets / total assets

 

0.41

%

 

0.41

%

 

0.44

%

 

0.63

%

 

0.64

%

Net charge-offs / average loans (annualized)

 

0.05

%

 

0.01

%

 

0.37

%

 

-0.01

%

 

0.71

%

Net charge-offs / average loans LTM

 

0.10

%

 

0.26

%

 

0.27

%

 

0.17

%

 

0.16

%

 
(1) Non-performing loans consist of non-accrual loans.
(2) Non-performing assets are non-performing loans plus real estate and other assets acquired by foreclosure or deed-in-lieu thereof.
(3) Accruing restructured loans are loans with known credit problems that are not contractually past due and therefore are not included in non-performing loans.

 

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