Premier Financial Corp. Announces Full Year 2022 Results and Dividend Increase
01/24/2023 - 04:15 PM
Fourth Quarter 2022 Highlights
Loan growth of $239.0 million 15.1% annualized) including $131.5 million 12.8% annualized)
Customer deposits growth of $100.4 million 6.0% annualized) including $43.0 million 9.4% annualized)
Net interest income (tax equivalent) of $62.8 million $62.2 million 9.3% and 17.0% , respectively, from 2021 fourth quarter
Completed an insurance agency acquisition
Declared dividend of $0.31 3.3% from prior year comparable period
Full Year 2022 Highlights
Loan growth of $1.1 billion 20.5% ) including $694.7 million 19.6% )
Customer deposits growth of $481.0 million 7.7% ) including $144.7 million 8.4% )
Net interest income (tax equivalent) of $243.7 million $237.3 million 6.7% and 14.1% , respectively, from 2021
Asset quality improved with non-performing loans down 30% and classified loans down 37% from 2021
DEFIANCE, Ohio --(BUSINESS WIRE)--
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 $0.71 $25.3 million $0.69 $102.2 million $2.85 $126.1 million $3.39
“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 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 15.1% annualized) on a linked quarter basis. Loan growth occurred in each category, including $131.5 million 12.8% annualized), $100.9 million 23.4% annualized) and $5.9 million 4.8% annualized). PPP loans decreased $38 thousand $1.1 million December 31, 2022 .
Customer deposits increased $100.4 million 6.0% annualized) on a linked quarter basis. Deposit growth occurred in each customer category, including $43.0 million 9.4% annualized) and $57.4 million 4.7% annualized). Brokered deposits also added $73.8 million
Net interest income and margin
Net interest income of $62.8 million 1.1% from $63.5 million 9.3% from $57.5 million 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 $225 thousand $6 thousand $1.2 million $62.2 million 1.0% from $62.9 million 17.0% from $53.2 million 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 1.3% increase from $6.5 million 4.4% increase from $6.4 million $14.2 million 14.8% from $16.7 million 19.1% from $17.6 million $4.3 million $4.6 million $0.3 million $3.4 million $4.1 million $0.5 million $0.2 million $1.2 million $1.3 million $8.7 million $0.1 million $43 thousand $1.1 million $9.6 million $1 thousand $18.3 million $1.0 million $2.1 million $1.1 million
“We are pleased to note we originated over $1 billion
Non-interest expenses
Non-interest expenses in the fourth quarter of 2022 were $43.0 million 4.7% increase from $41.1 million 3.7% increase from $41.5 million $25.0 million $24.5 million $24.2 million FDIC premiums increased $0.8 million $0.3 million $0.4 million $0.5 million $0.4 million $0.1 million 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 0.4% of assets, at December 31, 2022 , an increase from $33.6 million September 30, 2022 , but a decrease from $48.2 million December 31, 2021 . Loan delinquencies increased to $18.3 million 0.3% of loans, at December 31, 2022 , from $13.2 million September 30, 2022 , and from $12.3 million December 31, 2021 . Classified loans totaled $43.8 million 0.6% of loans, as of December 31, 2022 , a decrease from $45.0 million September 30, 2022 , and from $69.5 million December 31, 2021 .
The 2022 fourth quarter results include net loan charge-offs of $830 thousand $2.8 million $9.6 million $2.0 million 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
Annual results
For the year ended December 31, 2022 , net income totaled $102.2 million $2.85 $126.1 million $3.39 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 $0.32 $7.1 million $0.15
TE net interest income of $243.7 million 6.7% from $228.4 million 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 $0.9 million $3.8 million $12.1 million $237.3 million 14.1% from $208.0 million 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 7.0% increase from $24.2 million $62.2 million 21.6% from $79.3 million $12.1 million $10.7 million $3.8 million $2.5 million $0.6 million $1.3 million $8.7 million $1.9 million $4.2 million $2.2 million $2.0 million $1.2 million $1.1 million $1.1 million $1.3 million
Non-interest expenses in 2022 were $164.5 million 4.6% increase from $157.3 million $97.4 million $90.6 million $0.4 million 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 $8.24 billion September 30, 2022 , and $7.48 billion December 31, 2021 . Gross loans receivable were $6.46 billion December 31, 2022 , compared to $6.21 billion September 30, 2022 , and $5.30 billion December 31, 2021 . At December 31, 2022 , gross loans receivable increased $1.16 billion $57.8 million $1.22 billion 23.3% from a year ago. Commercial loans excluding PPP increased by $694.7 million December 31, 2021 , to 2022, or 19.6% . Securities at December 31, 2022 , were $1.05 billion $1.08 billion September 30, 2022 , and $1.22 billion December 31, 2021 . Also, at December 31, 2022 , goodwill and other intangible assets totaled $337.1 million $337.9 million September 30, 2022 , and $342.1 million December 31, 2021 , with the decreases attributable to intangibles amortization.
Total non-brokered deposits at December 31, 2022 , were $6.76 billion $6.66 billion September 30, 2022 , and $6.28 billion December 31, 2021 . At December 31, 2022 , customer deposits grew $100.4 million 6.0% annualized from the prior quarter and $481.0 million 7.7% from December 31, 2021 . Brokered deposits were $143.7 million December 31, 2022 , compared to $69.9 million September 30, 2022 and none at December 31, 2021 .
Total stockholders’ equity was $0.89 billion December 31, 2022 , compared to $0.86 billion September 30, 2022 , and $1.02 billion 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 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
Dividend to be paid February 17
The Board of Directors declared a quarterly cash dividend of $0.31 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,
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 % of Non Accrual % of
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 Classified % of
December 31, 2022
One to four family residential real estate
$
1,524,029
$
1,514,719
$
935
0.1
%
$
8,375
0.5
%
Construction
1,278,255
1,278,255
-
0.0
%
-
0.0
%
Commercial real estate
2,760,766
2,694,443
46,029
1.7
%
20,294
0.7
%
Commercial
1,050,122
1,016,973
26,319
2.5
%
6,830
0.7
%
Home equity and improvement
275,204
273,613
-
0.0
%
1,591
0.6
%
Consumer finance
213,131
210,760
-
0.0
%
2,371
1.1
%
PCD loans
20,831
13,904
2,590
12.4
%
4,337
20.8
%
Gross loans
$
7,122,338
$
7,002,667
$
75,873
1.1
%
$
43,798
0.6
%
September 30, 2022
One to four family residential real estate
$
1,466,470
$
1,458,082
$
1,267
0.1
%
$
7,121
0.5
%
Construction
1,242,045
1,240,745
1,300
0.1
%
-
0.0
%
Commercial real estate
2,672,451
2,584,984
65,233
2.4
%
22,234
0.8
%
Commercial
1,036,441
1,009,384
20,106
1.9
%
6,951
0.7
%
Home equity and improvement
269,786
268,384
-
0.0
%
1,402
0.5
%
Consumer finance
212,493
210,602
-
0.0
%
1,891
0.9
%
PCD loans
22,558
17,044
93
0.4
%
5,421
24.0
%
Gross loans
$
6,922,244
$
6,789,225
$
87,999
1.3
%
$
45,020
0.7
%
December 31, 2021
One to four family residential real estate
$
1,154,070
$
1,142,688
$
1,316
0.1
%
$
10,066
0.9
%
Construction
862,815
843,293
19,522
2.3
%
-
0.0
%
Commercial real estate
2,444,471
2,321,654
93,676
3.8
%
29,141
1.2
%
Commercial
886,472
857,905
14,815
1.7
%
13,752
1.6
%
Home equity and improvement
260,948
258,914
-
0.0
%
2,034
0.8
%
Consumer finance
125,926
124,073
-
0.0
%
1,853
1.5
%
PCD loans
32,337
19,547
101
0.3
%
12,689
39.2
%
Gross loans
$
5,767,039
$
5,568,074
$
129,430
2.2
%
$
69,535
1.2
%
Premier Financial Corp.
Selected Quarterly Information
(dollars in thousands)
As of and for the three months ended Twelve months ended
Mortgage Banking Summary 12/31/22 9/30/22 6/30/22 3/31/22 12/31/21 12/31/22 12/31/21
Revenue from sales and servicing of mortgage loans:
Mortgage banking gains, net
$
(1,285
)
$
3,363
$
1,166
$
2,543
$
2,774
$
5,787
$
16,437
Mortgage loan servicing revenue (expense):
Mortgage loan servicing revenue
1,862
1,861
1,862
1,879
1,909
7,464
7,574
Amortization of mortgage servicing rights
(1,271
)
(1,350
)
(1,375
)
(1,403
)
(1,774
)
(5,399
)
(7,892
)
Mortgage servicing rights valuation adjustments
396
96
295
1,233
151
2,019
5,806
987
607
782
1,709
286
4,084
5,488
Total revenue from sale/servicing of mortgage loans
$
(298
)
$
3,970
$
1,948
$
4,252
$
3,060
$
9,871
$
21,925
Mortgage servicing rights:
Balance at beginning of period
$
21,915
$
21,872
$
22,189
$
22,244
$
21,963
$
22,244
$
21,666
Loans sold, servicing retained
1,214
1,393
1,058
1,348
2,056
5,013
8,471
Amortization
(1,271
)
(1,350
)
(1,375
)
(1,403
)
(1,774
)
(5,399
)
(7,893
)
Balance at end of period
21,858
21,915
21,872
22,189
22,245
21,858
22,244
Valuation allowance:
Balance at beginning of period
(1,083
)
(1,179
)
(1,474
)
(2,707
)
(2,858
)
(2,706
)
(8,513
)
Impairment recovery (charges)
396
96
295
1,233
151
2,019
5,807
Balance at end of period
(687
)
(1,083
)
(1,179
)
(1,474
)
(2,707
)
(687
)
(2,706
)
Net carrying value at end of period
$
21,171
$
20,832
$
20,693
$
20,715
$
19,538
$
21,171
$
19,538
$
-
Allowance Summary
Beginning allowance
$
70,626
$
67,074
$
67,195
$
66,468
$
73,217
$
66,468
$
82,079
Provision (benefit) for credit losses - loans
3,020
3,706
5,151
626
2,816
12,503
(6,733
)
Net recoveries (charge-offs)
(830
)
(154
)
(5,272
)
101
(9,565
)
(6,155
)
(8,878
)
Ending allowance
$
72,816
$
70,626
$
67,074
$
67,195
$
66,468
$
72,816
$
66,468
Total loans
$
6,460,620
$
6,207,708
$
5,890,823
$
5,388,331
$
5,296,168
Less: PPP loans
(1,143
)
(1,181
)
(4,561
)
(18,660
)
(58,906
)
Total loans ex PPP
$
6,459,477
$
6,206,527
$
5,886,262
$
5,369,671
$
5,237,262
Allowance for credit losses (ACL)
$
72,816
$
70,626
$
67,074
$
67,195
$
66,468
Add: Unaccreted purchase accounting marks
2,706
3,291
3,924
4,652
5,418
Adjusted ACL
$
75,522
$
73,917
$
70,998
$
71,847
$
71,886
ACL/Loans
1.13
%
1.14
%
1.14
%
1.25
%
1.26
%
Adjusted ACL/Loans ex PPP
1.17
%
1.19
%
1.21
%
1.34
%
1.37
%
Credit Quality
Total non-performing loans (1)
$
33,822
$
33,137
$
34,735
$
47,298
$
48,014
Real estate owned (REO)
619
416
462
253
171
Total non-performing assets (2)
$
34,441
$
33,553
$
35,197
$
47,551
$
48,185
Net charge-offs (recoveries)
830
154
5,272
(101
)
9,565
Restructured loans, accruing (3)
6,587
6,909
5,899
6,287
7,768
Allowance for credit losses - loans / loans
1.13
%
1.14
%
1.14
%
1.25
%
1.26
%
Allowance for credit losses - loans / non-performing assets
211.42
%
210.49
%
190.57
%
141.31
%
137.94
%
Allowance for credit losses - loans / non-performing loans
215.29
%
213.13
%
193.10
%
142.07
%
138.43
%
Non-performing assets / loans plus REO
0.53
%
0.54
%
0.60
%
0.88
%
0.91
%
Non-performing assets / total assets
0.41
%
0.41
%
0.44
%
0.63
%
0.64
%
Net charge-offs / average loans (annualized)
0.05
%
0.01
%
0.37
%
-0.01
%
0.71
%
Net charge-offs / average loans LTM
0.10
%
0.26
%
0.27
%
0.17
%
0.16
%
(1) Non-performing loans consist of non-accrual loans.
(2) Non-performing assets are non-performing loans plus real estate and other assets acquired by foreclosure or deed-in-lieu thereof.
(3) Accruing restructured loans are loans with known credit problems that are not contractually past due and therefore are not included in non-performing loans.
View source version on businesswire.com : https://www.businesswire.com/news/home/20230124005934/en/
Paul Nungester
PNungester@yourpremierbank.com
Source: Premier Financial Corp.
