Premier Financial Corp. Announces Solid Second Quarter Results and Core Loan Growth

Premier Financial Corp. (Nasdaq: PFC) (“Premier” or the “Company”) today announced 2021 second quarter results. Net income for the second quarter of 2021 was $31.4 million, or $0.84 per diluted common share, compared to $29.1 million, or $0.78 per diluted common share, for the second quarter of 2020. The prior year’s results include the impact of $2.1 million of acquisition-related charges for the three months ended June 30, 2020, which had an after-tax cost of $1.7 million or $0.04 per diluted common share. Net income for the six months ended June 30, 2021, was $72.4 million, or $1.94 per diluted common share, compared to $6.6 million, or $0.19 per diluted common share, for the six months ended June 30, 2020. The six-month year-over-year comparison is substantially impacted by the acquisition of United Community Financial Corp. (“UCFC”) on January 31, 2020, with the prior year’s provision expense of $48.2 million that included $25.9 million related to acquisition accounting for an after-tax cost of $20.5 million, or $0.59 per diluted common share. The first half of 2021 included a provision recovery of $10.9 million, which had an after-tax benefit of $8.6 million, or $0.23 per diluted common share, and no acquisition impact. Additionally, the prior year’s six-month results include the impact of $13.6 million of acquisition-related charges, which had an after-tax cost of $11.1 million, or $0.32 per diluted common share. Excluding the impact of the acquisition-related provision and charges, earnings for the first half of 2020 were $38.2 million, or $1.11 per diluted common share.

“Results for the second quarter reflect the continued economic resurgence of our business and consumer clients across all markets,” said Gary Small, President and CEO of Premier. “The Premier team drove excellent new business generation and delivered solid loan growth during the quarter in our core commercial, consumer and residential mortgage business lines. Household deposits remain high, debt levels have improved and a double-digit increase in debit card and ATM revenue suggests that our clients are more confident and well on their way to a brighter future.”

Business client support efforts

As a part of the CARES Act, the Small Business Administration created the Paycheck Protection Program (“PPP”) to provide small businesses with loans as a direct incentive to keep their workers on the payroll. Premier Bank actively participated in PPP for clients and made 2,880 loans for a total of $443.3 million for the year ended December 31, 2020. Total gross fees for these loans equaled $14.8 million. To date, Premier Bank has recognized $13.0 million as loan interest income, including $2.8 million and $6.8 million during the three and six months ended June 30, 2021, respectively. Additionally, a total of $349.6 million in loans have been extinguished to date, including $178.4 million and $293.2 million during the three and six months ended June 30, 2021, respectively.

Beginning in January 2021, Premier Bank participated in the second round of PPP lending and made 2,229 loans for a total of $193.6 million during the six months ended June 30, 2021. Total gross fees for these loans were $7.8 million and Premier Bank has recognized $0.4 million and $0.6 million in loan interest income during the three and six months ended June 30, 2021, respectively.

Net interest income up compared to second quarter of 2020

Net interest income of $56.6 million in the second quarter of 2021 was up from $54.3 million in the second quarter of 2020. The increase over the prior year’s second quarter was attributable to growth in interest-earning assets, PPP fees and a 53% decrease in average costs of funds. Net interest margin was 3.34% for the second quarter of 2021, down from 3.43% in the first quarter of 2021, and down from 3.51% in the second quarter of 2020. Yield on interest earning assets decreased to 3.59% in the second quarter of 2021, down 14 basis points from 3.73% in the first quarter of 2021. Total cost of funds decreased 5 basis points in the second quarter of 2021 to 0.26% from 0.31% in the first quarter of 2021 while the total cost of interest-bearing liabilities decreased 6 basis points to 0.36% from 0.42%. The 2021 second quarter results include the impact of acquisition marks and related accretion for the UCFC acquisition. Interest income includes $1.3 million of accretion and interest expense includes $0.3 million of accretion, which combined added 9 basis points of net interest margin. The second quarter results also include the impact of PPP loans. Interest income includes $3.95 million on average balances of $378.5 million, which increased net interest margin by 5 basis points. Excluding the impact of acquisition marks and PPP loans, net interest margin would be 3.20% for the second quarter of 2021 compared to 3.25% for the first quarter of 2021 and 3.34% for the second quarter of 2020.

“We are pleased by the quarter’s net interest income growth that was driven by core loan growth across the board and diligent efforts to reduce our deposit funding costs,” said Small. “We anticipate the current, robust deposit environment will be with us for the foreseeable future along with a corresponding expanded securities portfolio. In this difficult rate environment, we will continue to prioritize delivering income growth while taking steps to maintain margins.”

Non-interest income down from second quarter of 2020

Premier’s non-interest income in the second quarter of 2021 was $17.5 million compared with $23.0 million in the second quarter of 2020. Total mortgage banking income decreased to $2.2 million in the second quarter of 2021 from $9.9 million in the second quarter of 2020. Gains from the sale of mortgage loans decreased to $2.7 million in the second quarter of 2021 from $11.5 million in the second quarter of 2020. While total mortgage loan production has been consistently strong compared to prior year, gains have declined due to compressed margins, a lower saleable mix and less favorable marks on the in-process portfolio. Mortgage loan servicing revenue of $1.9 million in the second quarter of 2021 was consistent with $1.9 million in the second quarter of 2020. Amortization of mortgage servicing rights decreased to $2.0 million in the second quarter of 2021 from $2.2 million in the second quarter of 2020. Premier also had a negative change in the valuation adjustment for mortgage servicing assets of $0.4 million in the second quarter of 2021 compared with a negative adjustment of $1.4 million in the second quarter of 2020. This item closely follows the trend in USTN-10, which declined 29 basis points during the quarter to 1.45% at June 30, 2021.

For the second quarter of 2021, service fees and other charges were $6.3 million, up 12% from $5.6 million in the second quarter of 2020 primarily due to higher ATM and interchange related fees. Revenues from insurance commissions, wealth management and BOLI were generally consistent with prior year totaling $6.5 million in second quarter 2021 compared to $6.6 million in second quarter 2020. Securities gains were $0.7 million in the second quarter of 2021 compared to a loss of $2,000 in the second quarter of 2020. Other non-interest income was $2.0 million in the second quarter of 2021, up from $0.9 million in the second quarter of 2020 primarily due to a $1.3 million non-recurring settlement payment this quarter.

“Residential mortgage new business activity for the quarter continued at the accelerated pace experienced over the past few quarters,” said Small. “However, mortgage banking income for the quarter was tempered by a higher percentage of the new business being held in portfolio, tighter pricing and unfavorable marks for the sizable in-process portfolio generated by the very robust production activity of the past two quarters. As we closed the quarter, the percentage of salable business began returning to expected levels, in-process loans were trending down and pricing stabilized leaving us better positioned for the remainder of the year.”

Core non-interest expenses up from second quarter of 2020

Total non-interest expense was $38.4 million in the second quarter of 2021, up from $38.0 million in the second quarter of 2020, or up from $35.9 million excluding $2.1 million of acquisition related charges. Compensation and benefits increased to $21.0 million in the second quarter of 2021, compared to $19.6 million in the second quarter of 2020. Occupancy expense was $3.8 million in the second quarter of 2021, down from $4.1 million in the second quarter of 2020. Data processing cost was $3.3 million in the second quarter of 2021, down from $3.8 million in the second quarter of 2020. Amortization of intangibles was $1.6 million in the second quarter of 2021, down from $1.8 million in the second quarter of 2020. Other non-interest expense was $6.9 million in the second quarter of 2021, up from $5.0 million in the second quarter of 2020 partly due to higher costs related to ATM and interchange volumes, loan volumes and travel and entertainment costs.

Credit quality

Non-performing assets totaled $41.3 million, or 0.54% of assets, at June 30, 2021, a decrease from $49.4 million at March 31, 2021, but an increase from $40.0 million at June 30, 2020. Accruing troubled debt restructured loans were $5.9 million at June 30, 2021, compared with $7.9 million at June 30, 2020. Loan delinquencies increased to $9.9 million, or 0.2% of loans, at June 30, 2021, from $9.5 million at March 31, 2021, but decreased from $11.0 million at June 30, 2020.

The 2021 second quarter results include net loan recoveries of $0.2 million and a total provision credit of $3.9 million compared with net loan recoveries of $0.8 million and a total provision expense of $3.0 million for the same period in 2020. The allowance for credit losses on loans as a percentage of total loans was 1.33% at June 30, 2021, or 1.41% excluding PPP loans, compared with 1.37% at March 31, 2021, or 1.49% excluding PPP loans, and 1.62%, or 1.76% excluding PPP loans, at June 30, 2020. The continued economic improvement from the 2020 pandemic-related downturn led to the year-over-year decrease in the provision expense and allowance percentage. As of June 30, 2021, Premier Bank had no commercial loan pandemic-related deferrals, down from $32.4 million at March 31, 2021, and only one retail loan for $13,000, down from $3.4 million at March 31, 2021.

“We are delighted with this quarter’s improved asset quality, which included a 16% reduction in non-performing assets,” said Paul Nungester, CFO of Premier. “These enhancements along with a second consecutive quarter of recoveries and an even better economic forecast led to a further reduction in our reserve levels. We committed to supporting our clients during the pandemic through our COVID deferral program and are glad to see that they are confident and gaining momentum with essentially all now back in return-to-pay status.”

Year to date results

For the six-month period ended June 30, 2021, net income totaled $72.4 million, or $1.94 per diluted common share, compared to $6.6 million, or $0.19 per diluted common share for the six months ended June 30, 2020. Results for the first half of 2020 included five months of income and expenses from UCFC compared to six months in 2021. The year-over-year comparison is also substantially impacted by the prior year’s provision expense of $48.2 million, which included $25.9 million related to acquisition accounting for an after-tax cost of $20.5 million, or $0.59 per diluted common share. The first half of 2021 included a provision credit of $10.9 million, which had an after-tax benefit of $8.6 million, or $0.23 per diluted common share, and no acquisition impact. Additionally, the prior year’s results include the impact of $13.6 million of acquisition-related charges, which had an after-tax cost of $11.1 million, or $0.32 per diluted common share. Excluding the impact of acquisition-related provision and charges, earnings for the first half of 2020 were $38.2 million, or $1.11 per diluted common share.

Net interest income was $113.1 million for the first six months of 2021 compared with $99.8 million in the first six months of 2020. Average interest-earning assets increased to $6.71 billion in the first six months of 2021 compared to $5.56 billion in the first six months of 2020. Net interest margin for the first six months of 2021 was 3.39%, down 24 basis points from the 3.63% margin reported in the six-month period ended June 30, 2020. Results include the impact of acquisition marks and related accretion for the UCFC acquisition. For the first six months of 2021, interest income includes $2.6 million of accretion and interest expense includes $0.7 million of accretion, which combined added 10 basis points of net interest margin. The results in the first half of 2021 also include the impact of PPP loans. Interest income includes $9.0 million on average balances of $406.8 million, which increased net interest margin by 7 basis points. Excluding the impact of acquisition marks and PPP loans, net interest margin was 3.22% for the first half of 2021 compared to 3.48% for the first half of 2020.

Non-interest income for the first six months of 2021 was $43.8 million compared to $37.0 million during the same period of 2020. Service fees and other charges were $11.8 million for the first six months of 2021, up from $10.8 million during the same period of 2020. Mortgage banking income was $12.7 million for the first six months of 2021, up from $10.7 million during the same period of 2020. Insurance commissions were $8.9 million for the first six months of 2021 compared with $9.2 million for the same period of 2020. Wealth management income was $3.3 million for the first six months of 2021, up from $2.9 million during the same period of 2020. Securities gains were $2.8 million for the first six months of 2021 compared to a loss of $2,000 for the same period in 2020. Approximately $2.0 million of the gain was related to the sale of securities where the Company took advantage of pricing to realize gains and reinvested in a mix of new securities that will generate the higher income over the next three years. The other $0.8 million was related to unrealized gains on our trading securities due to the improved market for these financial institution equities. BOLI income increased to $2.0 million in the first half of 2021, including $0.3 million of claim gains, compared to $1.6 million and no claim gains in the first half of 2020. Other non-interest income for the first half of 2021 was $2.3 million compared to $1.6 million in 2020.

Non-interest expense was $77.2 million for the first six months of 2021 compared to $80.3 million, or $66.7 million excluding acquisition-related charges, for the same period of 2020. Compensation and benefits expense was $43.0 million for the first six months of 2021 compared with $37.2 million during the same period of 2020. Expenses also included net increases of $1.0 million for occupancy, FDIC insurance premiums, financial institution taxes, data processing and amortization of intangibles and $3.5 million for other expenses.

Total assets at $7.59 billion

Total assets at June 30, 2021, were $7.59 billion compared to $7.53 billion at March 31, 2021, and $7.01 billion at June 30, 2020. Gross loans receivable (including loans held for sale) were $5.55 billion at June 30, 2021, compared to $5.68 billion at March 31, 2021, and $5.62 billion at June 30, 2020. At June 30, 2021, gross loans receivable decreased $70.2 million from a year ago due to a $147.2 million decrease in PPP loans. Excluding PPP, loans grew $77.0 million organically, or 1.5% from a year ago. Commercial loans excluding PPP increased $113.2 million from June 30, 2020, to 2021, or 3.4%, despite a $45.4 million decrease in lines of credit. Securities at June 30, 2021, were $1.29 billion compared to $932.3 million at March 31, 2021, and $567.5 million at June 30, 2020. Also, at June 30, 2021, goodwill and other intangible assets totaled $345.1 million compared to $346.7 million at March 31, 2021, and $351.7 million at June 30, 2020, with the decrease attributable to intangibles amortization.

Total deposits at June 30, 2021, were $6.29 billion compared with $6.35 billion at March 31, 2021, and $5.76 billion at June 30, 2020. At June 30, 2021, total deposits grew $0.53 billion organically, or 9.2% from a year ago.

Total stockholders’ equity was $1.03 billion at June 30, 2021, compared to $998.2 million at March 31, 2021, and $941.0 million at June 30, 2020. The increase in stockholders’ equity from the prior year was primarily due to net earnings. The Company also completed the repurchase of 126,366 common shares for $3.8 million during the second quarter of 2021. At June 30, 2021, 1,834,434 common shares remained available for repurchase under the Company’s existing authorization.

Dividend to be paid August 27

The Board of Directors declared a quarterly cash dividend of $0.27 per common share payable August 27, 2021, to shareholders of record at the close of business on August 20, 2021. The dividend represents an annual dividend of 4.0 percent based on the Premier common stock closing price on July 28, 2021. Premier has approximately 37,179,000 common shares outstanding.

Conference call

Premier will host a conference call at 11:00 a.m. ET on Friday, July 30, 2021, to discuss the earnings results and business trends. The conference call may be accessed by calling 1-877-444-1726. Internet access to the call is also available (in listen-only mode) at the following URL: https://services.choruscall.com/links/pfc210730.html. The 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 75 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, 2020. All forward-looking statements made in this presentation are based on information presently available to the management of Premier and speak only as of the date on which they are made. We assume no obligation to update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as may be required by law. As required by U.S. GAAP, Premier will evaluate the impact of subsequent events through the issuance date of its June 30, 2021, consolidated financial statements as part of its Quarterly Report on Form 10-Q to be filed with the SEC. Accordingly, subsequent events could occur that may cause Premier to update its critical accounting estimates and to revise its financial information from that which is contained in this news release.

Non-GAAP Reporting Measures

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

Consolidated Balance Sheets (Unaudited)
Premier Financial Corp.
	June 30,				December 31,
(in thousands)		2021				2020
Assets
Cash and cash equivalents
Cash and amounts due from depository institutions	$	63,790			$	79,593
Interest-bearing deposits		67,718				79,673
		131,508				159,266
Available-for sale, carried at fair value		1,279,128				736,654
Trading securities, carried at fair value		12,945				1,090
Securities investments		1,292,073				737,744
Loans		5,348,400				5,491,240
Allowance for credit losses - loans		(71,367	)			(82,079	)
Loans, net		5,277,033				5,409,161
Loans held for sale		199,070				221,616
Mortgage servicing rights		18,041				13,153
Accrued interest receivable		23,459				25,434
Federal Home Loan Bank stock		12,747				16,026
Bank Owned Life Insurance		145,919				144,784
Office properties and equipment		56,259				58,665
Real estate and other assets held for sale		45				343
Goodwill		317,948				317,948
Core deposit and other intangibles		27,140				30,337
Other assets		92,478				77,257
Total Assets	$	7,593,720			$	7,211,734
Liabilities and Stockholders’ Equity
Non-interest-bearing deposits	$	1,649,664			$	1,597,262
Interest-bearing deposits		4,641,795				4,450,579
Total deposits		6,291,459				6,047,841
Advances from FHLB and PPPLF		105,000				-
Notes payable and other interest-bearing liabilities		-				-
Subordinated debentures		84,913				84,860
Advance payments by borrowers for tax and insurance		19,474				21,748
Reserve for credit losses - unfunded commitments		5,613				5,350
Other liabilities		59,558				69,659
Total Liabilities		6,566,017				6,229,458
Stockholders’ Equity
Preferred stock		-				-
Common stock, net		306				306
Additional paid-in-capital		689,785				689,390
Accumulated other comprehensive income (loss)		10,953				15,004
Retained earnings		410,153				356,414
Treasury stock, at cost		(83,494	)			(78,838	)
Total stockholders’ equity		1,027,703				982,276
Total Liabilities and Stockholders’ Equity	$	7,593,720			$	7,211,734

Consolidated Statements of Income (Unaudited)
Premier Financial Corp.
	Three Months Ended								Six Months Ended
	June 30,								June 30,
(in thousands, except per share amounts)		2021				2020				2021				2020
Interest Income:
Loans	$	55,772			$	58,796			$	113,338			$	110,256
Investment securities		4,994				2,923				8,674				5,641
Interest-bearing deposits		42				79				108				309
FHLB stock dividends		56				651				115				766
Total interest income		60,864				62,449				122,235				116,972
Interest Expense:
Deposits		3,559				7,435				7,723				15,206
FHLB advances and other		12				516				12				1,523
Subordinated debentures		674				179				1,369				452
Notes Payable		-				15				-				24
Total interest expense		4,245				8,145				9,104				17,205
Net interest income		56,619				54,304				113,131				99,767
Provision (benefit) for credit losses - loans		(3,631	)			1,868				(11,145	)			45,655
Provision (benefit) for credit losses - unfunded commitments		(288	)			1,107				263				2,565
Total provision (benefit) for credit losses		(3,919	)			2,975				(10,882	)			48,220
Net interest income after provision		60,538				51,329				124,013				51,547
Non-interest Income:
Service fees and other charges		6,282				5,614				11,751				10,797
Mortgage banking income		2,157				9,868				12,691				10,716
Gain on sale of non-mortgage loans		-				-				-				234
Gain (loss) on sale of available for sale securities		1,469				(2	)			1,985				(2	)
Gain (loss) on trading securities		(808	)			-				802				-
Insurance commissions		4,059				4,005				8,940				9,160
Wealth management income		1,566				1,802				3,322				2,893
Income from Bank Owned Life Insurance		859				838				2,028				1,619
Other non-interest income		1,961				890				2,301				1,597
Total Non-interest Income		17,545				23,015				43,820				37,014
Non-interest Expense:
Compensation and benefits		21,046				19,575				43,044				37,160
Occupancy		3,837				4,128				7,949				7,859
FDIC insurance premium		522				411				1,420				903
Financial institutions tax		1,177				1,116				2,367				1,950
Data processing		3,334				3,805				6,716				6,845
Amortization of intangibles		1,575				1,809				3,197				3,054
Acquisition related charges		-				2,099				-				13,585
Other non-interest expense		6,884				5,041				12,485				8,937
Total Non-interest Expense		38,375				37,984				77,178				80,293
Income (loss) before income taxes		39,708				36,360				90,655				8,268
Income tax expense (benefit)		8,323				7,303				18,274				1,693
Net Income (Loss)	$	31,385			$	29,057			$	72,381			$	6,575
Earnings (loss) per common share:
Basic	$	0.84			$	0.78			$	1.94			$	0.19
Diluted	$	0.84			$	0.78			$	1.94			$	0.19
Average Shares Outstanding:
Basic		37,276				37,290				37,274				34,484
Diluted		37,358				37,323				37,351				34,526

Premier Financial Corp.
Financial Summary and Comparison (Unaudited)
	Three Months Ended									Six Months Ended
	June 30,									June 30,
(dollars in thousands, except per share data)		2021			2020		% change				2021			2020		% change
Summary of Operations
Tax-equivalent interest income (2)	$	61,134		$	62,705		(2.5	)		$	122,742		$	117,479		4.5
Interest expense		4,245			8,145		(47.9	)			9,104			17,205		(47.1	)
Tax-equivalent net interest income (2)		56,889			54,560		4.3				113,638			100,274		13.3
Provision (benefit) for credit losses		(3,919	)		2,975		(231.7	)			(10,882	)		48,220		(122.6	)
Core provision (benefit) for credit losses (4)		(3,919	)		2,975		(231.7	)			(10,882	)		22,271		(148.9	)
Investment securities gains (losses)		661			(2	)	NM				2,787			(2	)	NM
Non-interest income (excluding securities gains/losses)		16,884			23,017		(26.6	)			41,033			37,016		10.9
Non-interest expense		38,375			37,984		1.0				77,178			80,293		(3.9	)
Core non-interest expense (4)		38,375			35,885		6.9				77,178			66,708		15.7
Income tax expense (benefit)		8,323			7,303		14.0				18,274			1,693		979.4
Net income (loss)		31,385			29,057		8.0				72,381			6,575		1,000.9
Core net income (4)		31,385			30,715		2.2				72,381			38,185		89.6
Tax equivalent adjustment (2)		270			256		5.5				507			507		-
At Period End
Assets		7,593,720			7,013,811		8.3
Earning assets		6,920,008			6,345,655		9.1
Loans		5,348,400			5,457,238		(2.0	)
Allowance for credit losses - loans		71,367			88,555		(19.4	)
Deposits		6,291,459			5,759,843		9.2
Stockholders’ equity		1,027,703			940,968		9.2
Average Balances
Assets		7,549,531			7,005,783		7.8				7,444,791			6,185,668		20.4
Earning assets		6,806,275			6,247,037		9.0				6,709,348			5,559,542		20.7
Loans		5,495,782			5,389,805		2.0				5,562,379			4,862,410		14.4
Deposits and interest-bearing liabilities		6,454,731			5,963,127		8.2				6,365,441			5,232,503		21.7
Deposits		6,339,673			5,490,986		15.5				6,265,394			4,872,267		28.6
Stockholders’ equity		1,006,757			932,793		7.9				989,800			858,894		15.2
Stockholders’ equity / assets		13.34	%		13.31	%	0.2				13.30	%		13.89	%	(4.2	)
Per Common Share Data
Net Income (Loss)
Basic	$	0.84		$	0.78		7.7			$	1.94		$	0.19		921.1
Diluted		0.84			0.78		7.7				1.94			0.19		921.1
Core diluted (4)		0.84			0.82		2.4				1.94			1.11		74.8
Dividends Paid		0.26			0.22		18.2				0.50			0.44		13.6
Market Value:
High	$	33.97		$	20.11		68.9			$	35.90		$	31.95		12.4
Low		27.76			12.95		114.4				22.23			11.50		93.3
Close		28.41			17.67		60.8				28.41			17.67		60.8
Common Book Value		27.64			25.23		9.6				27.64			25.23		9.6
Tangible Common Book Value (1)		18.36			15.80		16.2				18.36			15.80		16.2
Shares outstanding, end of period (000s)		37,178			37,296		(0.3	)			37,178			37,296		(0.3	)
Performance Ratios (annualized)
Tax-equivalent net interest margin (2)		3.34	%		3.51	%	(4.8	)			3.39	%		3.63	%	(6.6	)
Return on average assets		1.67	%		1.67	%	(0.2	)			1.96	%		0.21	%	833.6
Core return on average assets (4)		1.67	%		1.76	%	(5.4	)			1.96	%		1.24	%	57.9
Return on average equity		12.50	%		12.53	%	(0.2	)			14.75	%		1.54	%	857.6
Core return on average equity (4)		12.50	%		13.24	%	(5.6	)			14.75	%		8.94	%	64.9
Return on average tangible equity		19.05	%		20.13	%	(5.4	)			22.70	%		2.40	%	844.1
Core return on average tangible equity (4)		19.05	%		21.28	%	(10.5	)			22.70	%		14.00	%	62.1
Efficiency ratio (3)		52.02	%		48.96	%	6.2				49.90	%		58.48	%	(14.7	)
Core efficiency ratio (4)		52.02	%		46.26	%	12.5				49.90	%		48.59	%	2.7
Effective tax rate		20.96	%		20.09	%	4.3				20.16	%		20.48	%	(1.6	)
Dividend payout ratio (core)		30.95	%		26.83	%	15.4				25.77	%		39.64	%	(35.0	)

Note: Year-to-date 2020 results include five months of operations from UCFC compared to six for comparable period in 2021.

(1) Tangible common book value = total stockholders' equity less the sum of goodwill, core deposit and other intangibles, and preferred stock divided by shares outstanding at the end of the period.

(2) 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%.

(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.

(4) Core items exclude the impact of acquisition related provision ("CECL double-dip") and other charges. See non-GAAP reconciliations.

NM Percentage change not meaningful

Premier Financial Corp.
(dollars in thousands)
	Three Months Ended												Six Months Ended
	June 30,												June 30,
Mortgage Banking Summary		2021				2020								2021				2020
Revenue from sales and servicing of mortgage loans:
Gain from sale of mortgage loans	$	2,670			$	11,530							$	8,310			$	16,432
Mortgage loan servicing revenue (expense):
Mortgage loan servicing revenue		1,887				1,888								3,805				3,482
Amortization of mortgage servicing rights		(1,953	)			(2,181	)							(4,297	)			(3,344	)
Mortgage servicing rights valuation adjustments		(447	)			(1,369	)							4,873				(5,854	)
		(513	)			(1,662	)							4,381				(5,716	)
Total revenue from sale and servicing of mortgage loans	$	2,157			$	9,868							$	12,691			$	10,716
Mortgage servicing rights:
Balance at beginning of period	$	21,696			$	20,761							$	21,666			$	10,801
Loans sold, servicing retained		1,938				2,454								4,312				3,830
Mortgage servicing rights acquired		-				-								-				9,747
Amortization		(1,953	)			(2,181	)							(4,297	)			(3,344	)
Carrying value before valuation allowance at end of period		21,681				21,034								21,681				21,034
Valuation allowance:
Balance at beginning of period		(3,193	)			(5,019	)							(8,513	)			(534	)
Impairment recovery (charges)		(447	)			(1,369	)							4,873				(5,854	)
Balance at end of period		(3,640	)			(6,388	)							(3,640	)			(6,388	)
Net carrying value at end of period	$	18,041			$	14,646							$	18,041			$	14,646
COVID-19 Deferrals Update	6/30/2021				3/31/2021				12/31/2020				9/30/2020				6/30/2020				3/31/2020
Commercial loan deferrals	$	-			$	32,370			$	46,038			$	434,554			$	739,632			$	47,197
% of commercial loans		0.0	%			0.8	%			1.2	%			11.4	%			19.7	%			1.4	%
% of total loans		0.0	%			0.6	%			0.8	%			7.9	%			13.5	%			0.9	%
Retail loan deferrals	$	13			$	3,414			$	7,412			$	48,187			$	73,266			$	13
% of retail loans		0.0	%			0.2	%			0.4	%			2.9	%			4.3	%			0.0	%
% of total loans		0.0	%			0.1	%			0.1	%			0.9	%			1.3	%			0.0	%
Total loan deferrals	$	13			$	35,784			$	53,450			$	482,741			$	812,898			$	47,210
% of total loans		0.0	%			0.7	%			1.0	%			8.8	%			14.9	%			0.9	%
Commercial Loan Deferral Rollforward	3/31/21 Balance				New Deferrals				Payoffs/ Changes				Return to Pay(1)				6/30/21 Balance				2Q21 Extensions
Interest only 1-3 months	$	12,412			$	-			$	(22	)		$	(12,390	)		$	-			$	-
Interest only 4-5 months		74				-				(1	)			(73	)			-				-
Interest only 6 months		19,828				-				(5	)			(19,823	)			-				-
Deferred payment 1-90 days		56				-				(1	)			(55	)			-				-
Deferred payment 91-179 days		-				-				-				-				-				-
Deferred payment 180 days		-				-				-				-				-				-
Total	$	32,370			$	-			$	(29	)		$	(32,341	)		$	-			$	-
Commercial Loan Deferral Expirations Update	6/30/21 Balance
July	$	-
August		-
September		-
October		-
November		-
December		-
Total	$	-

Note: Year-to-date 2020 results include five months of operations from UCFC compared to six for comparable periods in 2021

(1) Represents 100% of previously disclosed second quarter 2021 scheduled expirations.

Premier Financial Corp.
Yield Analysis
	Three Months Ended June 30,
	(dollars in thousands)
	2021									2020
	Average						Yield			Average						Yield
	Balance			Interest(1)			Rate(2)			Balance			Interest(1)			Rate(2)
Interest-earning assets:
Loans receivable	$	5,495,782		$	55,786		4.06	%		$	5,389,805		$	58,819		4.39	%
Securities		1,193,363			5,250		1.76	%			523,360			3,156		2.48	%	(3)
Interest Bearing Deposits		106,025			42		0.16	%			260,586			79		0.12	%
FHLB stock		11,105			56		2.02	%			73,286			651		3.57	%
Total interest-earning assets		6,806,275			61,134		3.59	%			6,247,037			62,705		4.04	%
Non-interest-earning assets		743,256									758,746
Total assets	$	7,549,531								$	7,005,783
Deposits and Interest-bearing liabilities:
Interest bearing deposits	$	4,640,196		$	3,559		0.31	%		$	4,144,699		$	7,435		0.72	%
FHLB advances and other		30,165			12		0.16	%			420,784			516		0.49	%
Subordinated debentures		84,893			674		3.18	%			36,083			179		2.00	%
Notes payable		-			-		-				15,274			15		0.39	%
Total interest-bearing liabilities		4,755,254			4,245		0.36	%			4,616,840			8,145		0.71	%
Non-interest bearing deposits		1,699,477			-		-				1,346,287			-		-
Total including non-interest-bearing deposits		6,454,731			4,245		0.26	%			5,963,127			8,145		0.55	%
Other non-interest-bearing liabilities		88,043									109,863
Total liabilities		6,542,774									6,072,990
Stockholders' equity		1,006,757									932,793
Total liabilities and stockholders' equity	$	7,549,531								$	7,005,783
Net interest income; interest rate spread				$	56,889		3.23	%					$	54,560		3.33	%
Net interest margin (4)							3.34	%								3.51	%
Average interest-earning assets to average interest bearing liabilities							143	%								135	%
	Six Months Ended June 30,
	2021									2020
	Average						Yield			Average						Yield
	Balance			Interest(1)			Rate(2)			Balance			Interest(1)			Rate(2)
Interest-earning assets:
Loans receivable	$	5,562,379		$	113,366		4.08	%		$	4,862,410		$	110,304		4.55	%
Securities		1,009,695			9,153		1.81	%			482,839			6,100		2.57	%	(3)
Interest Bearing Deposits		125,732			108		0.17	%			164,662			309		0.38	%
FHLB stock		11,542			115		1.99	%			49,631			766		3.10	%
Total interest-earning assets		6,709,348			122,742		3.66	%			5,559,542			117,479		4.24	%
Non-interest-earning assets		735,443									626,126
Total assets	$	7,444,791								$	6,185,668
Deposits and Interest-bearing liabilities:
Interest bearing deposits	$	4,593,493		$	7,723		0.34	%		$	3,750,226		$	15,206		0.81	%
FHLB advances and other		15,166			12		0.16	%			315,337			1,523		0.97	%
Subordinated debentures		84,881			1,369		3.23	%			36,083			452		2.51	%
Notes payable		-			-		-				8,816			24		0.55	%
Total interest-bearing liabilities		4,693,540			9,104		0.39	%			4,110,462			17,205		0.84	%
Non-interest bearing deposits		1,671,901			-		-				1,122,041			-		-
Total including non-interest-bearing deposits		6,365,441			9,104		0.29	%			5,232,503			17,205		0.66	%
Other non-interest-bearing liabilities		89,550									94,271
Total liabilities		6,454,991									5,326,774
Stockholders' equity		989,800									858,894
Total liabilities and stockholders' equity	$	7,444,791								$	6,185,668
Net interest income; interest rate spread				$	113,638		3.27	%					$	100,274		3.40	%
Net interest margin (4)							3.39	%								3.63	%
Average interest-earning assets to average interest bearing liabilities							143	%								135	%

Note: Year-to-date 2020 results include five months of operations from UCFC compared to six for comparable period in 2021.

(1) 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%.

(2) Annualized.

(3) Securities yield = annualized interest income divided by the average balance of securities, excluding average unrealized gains/losses.

(4) Net interest margin is tax equivalent net interest income divided by average interest-earning assets.

Premier Financial Corp.
Selected Quarterly Information
(dollars in thousands, except per share data)		2nd Qtr 2021				1st Qtr 2021				4th Qtr 2020				3rd Qtr 2020				2nd Qtr 2020
Summary of Operations
Tax-equivalent interest income (1)		$	61,134			$	61,609			$	61,067			$	60,418			$	62,705
Interest expense			4,245				4,859				5,849				6,888				8,145
Tax-equivalent net interest income (1)			56,889				56,750				55,218				53,530				54,560
Provision (benefit) for credit losses			(3,919	)			(6,963	)			(6,764	)			2,794				2,975
Core provision (benefit) for credit losses (3)			(3,919	)			(6,963	)			(6,764	)			2,794				2,975
Investment securities gains (losses)			661				2,126				76				1,480				(2	)
Non-interest income (excluding securities gains/losses)			16,884				24,149				18,594				23,520				23,017
Non-interest expense			38,375				38,803				41,313				43,563				37,984
Core non-interest expense (3)			38,375				38,803				39,123				38,445				35,885
Income tax expense (benefit)			8,323				9,952				8,240				6,259				7,303
Net income (loss)			31,385				40,996				30,848				25,655				29,057
Core net income (3)			31,385				40,996				32,577				28,587				30,715
Tax equivalent adjustment (1)			270				237				251				259				256
At Period End
Total assets		$	7,593,720			$	7,530,462			$	7,211,734			$	6,974,953			$	7,013,811
Earning assets			6,920,008				6,852,357				6,546,299				6,340,132				6,345,655
Loans			5,348,400				5,459,683				5,491,240				5,470,548				5,457,238
Allowance for loan losses			71,367				74,754				82,079				88,917				88,555
Deposits			6,291,459				6,351,919				6,047,841				5,795,757				5,759,843
Stockholders’ equity			1,027,703				998,186				982,276				959,025				940,968
Stockholders’ equity / assets			13.53	%			13.26	%			13.62	%			13.75	%			13.42	%
Goodwill			317,948				317,948				317,948				317,948				317,948
Average Balances
Total assets		$	7,549,531			$	7,338,886			$	7,089,060			$	6,935,783			$	7,005,783
Earning assets			6,806,275				6,611,343				6,363,306				6,211,267				6,247,037
Loans			5,495,782				5,629,715				5,609,116				5,555,621				5,389,805
Deposits and interest-bearing liabilities			6,454,731				6,275,160				6,044,049				5,901,652				5,963,127
Deposits			6,339,673				6,190,292				5,956,550				5,738,006				5,490,986
Stockholders’ equity			1,006,757				972,653				946,223				927,506				932,793
Stockholders’ equity / assets			13.34	%			13.25	%			13.35	%			13.37	%			13.31	%
Per Common Share Data
Net Income (Loss):
Basic		$	0.84			$	1.10			$	0.83			$	0.69			$	0.78
Diluted			0.84				1.10				0.82				0.69				0.78
Core diluted (3)			0.84				1.10				0.87				0.77				0.82
Dividends Paid			0.26				0.24				0.22				0.22				0.22
Market Value:
High		$	33.97			$	35.90			$	23.49			$	21.24			$	20.11
Low			27.76				22.23				14.90				14.74				12.95
Close			28.41				33.26				23.00				15.58				17.67
Common Book Value			27.64				26.78				26.34				25.71				25.23
Shares outstanding, end of period (000s)			37,178				37,275				37,291				37,297				37,296
Performance Ratios (annualized)
Tax-equivalent net interest margin (1)			3.34	%			3.43	%			3.47	%			3.47	%			3.51	%
Return on average assets			1.67	%			2.27	%			1.73	%			1.49	%			1.67	%
Core return on average assets (3)			1.67	%			2.27	%			1.83	%			1.64	%			1.76	%
Return on average equity			12.50	%			17.09	%			12.97	%			11.12	%			12.53	%
Core return on average equity (3)			12.50	%			17.09	%			13.70	%			12.26	%			13.24	%
Return on average tangible equity			19.05	%			26.60	%			20.37	%			17.71	%			20.13	%
Core return on average tangible equity (3)			19.05	%			26.60	%			21.51	%			19.73	%			21.28	%
Efficiency ratio (2)			52.02	%			47.96	%			55.97	%			56.54	%			48.96	%
Core efficiency ratio (3)			52.02	%			47.96	%			53.00	%			49.90	%			46.26	%
Effective tax rate			20.96	%			19.53	%			21.08	%			19.61	%			20.09	%
Common dividend payout ratio (core)			30.95	%			21.82	%			25.29	%			28.57	%			26.83	%

(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) Efficiency ratio = Non-interest expense divided by sum of tax-equivalent net interest income plus non-interest income, excluding securities gains or losses, net.

(3) Core items exclude the impact of acquisition related provision ("CECL double-dip") and other charges. See non-GAAP reconciliations.

Premier Financial Corp.
Selected Quarterly Information
(dollars in thousands, except per share data)	2nd Qtr 2021				1st Qtr 2021				4th Qtr 2020				3rd Qtr 2020				2nd Qtr 2020
Loan Portfolio Composition
One to four family residential real estate	$	1,138,433			$	1,168,559			$	1,201,051			$	1,194,940			$	1,226,106
Construction		830,822				749,190				667,649				580,060				509,548
Commercial real estate		2,405,653				2,402,067				2,383,001				2,328,944				2,266,189
Commercial		1,051,972				1,172,910				1,202,353				1,263,565				1,244,549
Consumer finance		118,526				117,539				120,729				128,995				146,139
Home equity and improvement		261,842				257,764				272,701				281,010				290,459
Total loans		5,807,248				5,868,029				5,847,484				5,777,514				5,682,990
Less:
Undisbursed loan funds		458,156				405,983				355,065				300,174				221,137
Deferred loan origination fees		692				2,363				1,179				6,792				4,615
Allowance for credit losses - loans		71,367				74,754				82,079				88,917				88,555
Net Loans	$	5,277,033			$	5,384,929			$	5,409,161			$	5,381,631			$	5,368,683
Allowance for credit losses - loans
Beginning allowance	$	74,754			$	82,079			$	88,917			$	88,555			$	85,859
CECL adoption		-				-				-				-				-
Acquisition related allowance/provision (non PCD)		-				-				-				-				-
Acquisition related allowance/goodwill (PCD)		-				-				-				-				-
Provision (benefit) for credit losses - loans		(3,631	)			(7,514	)			(6,158	)			3,658				1,868
Net recoveries (charge-offs)		244				189				(680	)			(3,296	)			828
Ending allowance	$	71,367			$	74,754			$	82,079			$	88,917			$	88,555
Credit Quality
Total non-performing loans (1)	$	41,296			$	49,298			$	51,983			$	48,360			$	39,470
Real estate owned (REO)		45				53				343				521				573
Total non-performing assets (2)	$	41,341			$	49,351			$	52,326			$	48,881			$	40,043
Net charge-offs (recoveries)		(244	)			(189	)			680				3,296				(828	)
Restructured loans, accruing (3)		5,939				6,068				7,173				8,499				7,916
Allowance for credit losses - loans / loans		1.33	%			1.37	%			1.49	%			1.63	%			1.62	%
Allowance for credit losses - loans / non-performing assets		172.63	%			151.47	%			156.86	%			182.05	%			221.15	%
Allowance for credit losses - loans / non-performing loans		172.82	%			151.64	%			157.90	%			184.01	%			224.36	%
Non-performing assets / loans plus REO		0.77	%			0.90	%			0.95	%			0.89	%			0.73	%
Non-performing assets / total assets		0.54	%			0.66	%			0.73	%			0.70	%			0.57	%
Net charge-offs / average loans (annualized)		-0.02	%			-0.01	%			0.05	%			0.24	%			-0.06	%
Deposit Balances
Non-interest-bearing demand deposits	$	1,649,664			$	1,728,895			$	1,597,262			$	1,436,807			$	1,454,842
Interest-bearing demand deposits and money market		2,890,769				2,806,271				2,627,669				2,511,263				2,361,486
Savings deposits		777,862				761,899				700,480				674,354				671,650
Retail time deposits less than $250,000		720,317				842,624				912,006				975,658				1,078,758
Retail time deposits greater than $250,000		252,847				212,230				210,424				197,675				193,107
Total deposits	$	6,291,459			$	6,351,919			$	6,047,841			$	5,795,757			$	5,759,843

(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.

Premier Financial Corp.
Loan Delinquency Information
(dollars in thousands)		Total Balance		Current		30 to 89 days past due		% of Total		Non Accrual Loans		% of Total
June 30, 2021
One to four family residential real estate		$ 1,138,433		$ 1,122,060		$ 5,757		0.5%		$ 10,616		0.9%
Construction		830,822		830,242		580		0.1%		-		0.0%
Commercial real estate		2,405,653		2,388,082		53		0.0%		17,518		0.7%
Commercial		1,051,972		1,044,265		-		0.0%		7,707		0.7%
Consumer finance		118,526		115,169		1,530		1.3%		1,827		1.5%
Home equity and improvement		261,842		256,259		1,955		0.7%		3,628		1.4%
Total loans		$ 5,807,248		$ 5,756,077		$ 9,875		0.2%		$ 41,296		0.7%
March 31, 2021
One to four family residential real estate		$ 1,168,559		$ 1,150,194		$ 5,622		0.5%		$ 12,743		1.1%
Construction		749,190		748,362		584		0.1%		244		0.0%
Commercial real estate		2,402,067		2,379,138		222		0.0%		22,707		0.9%
Commercial		1,172,910		1,164,587		298		0.0%		8,025		0.7%
Consumer finance		117,539		114,214		1,424		1.2%		1,901		1.6%
Home equity and improvement		257,764		252,732		1,354		0.5%		3,678		1.4%
Total loans		$ 5,868,029		$ 5,809,227		$ 9,504		0.2%		$ 49,298		0.8%
June 30, 2020
One to four family residential real estate		$ 1,226,106		$ 1,213,482		$ 6,056		0.5%		$ 6,568		0.5%
Construction		509,548		509,548		-		0.0%		-		0.0%
Commercial real estate		2,266,189		2,244,412		1,040		0.0%		20,737		0.9%
Commercial		1,244,549		1,233,703		680		0.1%		10,166		0.8%
Consumer finance		146,139		144,555		988		0.7%		596		0.4%
Home equity and improvement		290,459		285,858		2,237		0.8%		2,364		0.8%
Total loans		$ 5,682,990		$ 5,631,558		$ 11,001		0.2%		$ 40,431		0.7%
Loan Risk Ratings Information
(dollars in thousands)		Total Balance		Pass Rated		Special Mention		% of Total		Classified		% of Total
June 30, 2021
One to four family residential real estate		$ 1,125,097		$ 1,114,219		$ 1,117		0.1%		$ 9,761		0.9%
Construction		830,822		815,429		15,393		1.9%		-		0.0%
Commercial real estate		2,393,591		2,217,858		132,099		5.5%		43,634		1.8%
Commercial		1,038,059		991,021		24,898		2.4%		22,140		2.1%
Consumer finance		117,764		116,137		-		0.0%		1,627		1.4%
Home equity and improvement		257,618		255,497		-		0.0%		2,121		0.8%
PCD loans		44,297		21,328		905		2.0%		22,064		49.8%
Total loans		$ 5,807,248		$ 5,531,489		$ 174,412		3.0%		$ 101,347		1.7%
March 31, 2021
One to four family residential real estate		$ 1,154,141		$ 1,145,356		$ 1,173		0.1%		$ 7,612		0.7%
Construction		749,190		727,821		21,126		2.8%		243		0.0%
Commercial real estate		2,380,688		2,216,699		115,758		4.9%		48,231		2.0%
Commercial		1,156,948		1,108,381		25,400		2.2%		23,167		2.0%
Consumer finance		116,723		115,044		-		0.0%		1,679		1.4%
Home equity and improvement		253,049		250,944		-		0.0%		2,105		0.8%
PCD loans		57,290		23,956		1,748		3.1%		31,586		55.1%
Total loans		$ 5,868,029		$ 5,588,201		$ 165,205		2.8%		$ 114,623		2.0%
June 30, 2020
One to four family residential real estate		$ 1,212,490		$ 1,206,062		$ 304		0.0%		$ 6,124		0.5%
Construction		287,239		287,174		65		0.0%		-		0.0%
Commercial real estate		2,231,602		2,191,433		21,436		1.0%		18,733		0.8%
Commercial		1,223,580		1,193,020		23,979		2.0%		6,581		0.5%
Consumer finance		136,765		136,449		-		0.0%		316		0.2%
Home equity and improvement		284,923		284,188		-		0.0%		735		0.3%
PCD loans		80,639		21,817		13,985		17.3%		44,837		55.6%
Total loans		$ 5,457,238		$ 5,320,143		$ 59,769		1.1%		$ 77,326		1.4%

Premier Financial Corp.
Non-GAAP Reconciliations
		Six months ended
(In thousands, except per share and ratio data)		6/30/21				6/30/20				2nd Qtr 2021				1st Qtr 2021				4th Qtr 2020				3rd Qtr 2020				2nd Qtr 2020
Acquisition related charges (pre-tax)		$	-			$	13,585			$	-			$	-			$	2,190			$	3,711			$	2,099
Less: Tax benefit of acquisition related charges			-				2,475				-				-				460				779				441
Acquisition related charges (after-tax)		$	-			$	11,110			$	-			$	-			$	1,730			$	2,932			$	1,658
Total non-interest expenses		$	77,178			$	80,293			$	38,375			$	38,803			$	41,313			$	43,563			$	37,984
Less: Acquisition related charges (pre-tax)			-				13,585				-				-				2,190				3,711				2,099
Less: FHLB prepayment charges(1)			-				-				-				-				-				1,407				-
Core non-interest expenses		$	77,178			$	66,708			$	38,375			$	38,803			$	39,123			$	38,445			$	35,885
Acquisition related provision (pre-tax)		$	-			$	25,949			$	-			$	-			$	-			$	-			$	-
Less: Tax benefit of acquisition related provision			-				5,449				-				-				-				-				-
Acquisition related provision (after-tax)		$	-			$	20,500			$	-			$	-			$	-			$	-			$	-
Provision (benefit) for credit losses		$	(10,882	)		$	48,220			$	(3,919	)		$	(6,963	)		$	(6,764	)		$	2,794			$	2,975
Less: Acquisition related provision (pre-tax)			-				25,949				-				-				-				-				-
Core provision (benefit) for credit losses		$	(10,882	)		$	22,271			$	(3,919	)		$	(6,963	)		$	(6,764	)		$	2,794			$	2,975
Non-interest income		$	43,820			$	37,014			$	17,545			$	26,275			$	18,669			$	25,000			$	23,015
Less: Securities gains (losses)			2,787				(2	)			661				2,126				76				1,480				(2	)
Non-interest income (excluding securities gains/losses)		$	41,033			$	37,016			$	16,884			$	24,149			$	18,593			$	23,520			$	23,017
Tax-equivalent net interest income		$	113,638			$	100,274			$	56,889			$	56,750			$	55,218			$	53,530			$	54,560
Non-interest income (excluding securities gains/losses)			41,033				37,016				16,884				24,149				18,593				23,520				23,017
Total revenues			154,671				137,290				73,773				80,899				73,811				77,050				77,577
Core non-interest expenses		$	77,178			$	66,708			$	38,375			$	38,803			$	39,123			$	38,445			$	35,885
Core efficiency ratio			49.90	%			48.59	%			52.02	%			47.96	%			53.00	%			49.90	%			46.26	%
Income (loss) before income taxes		$	90,655			$	8,268			$	39,708			$	50,948			$	39,087			$	31,914			$	36,360
Add: Provision (benefit) for credit losses			(10,882	)			48,220				(3,919	)			(6,963	)			(6,764	)			2,794				2,975
Pre-tax pre-provision income			79,773				56,488				35,789				43,985				32,323				34,708				39,335
Add: Acquisition related charges (pre-tax)			-				13,585				-				-				2,190				3,711				2,099
Core pre-tax pre-provision income		$	79,773			$	70,073			$	35,789			$	43,985			$	34,513			$	38,419			$	41,434
Average total assets		$	7,444,791			$	6,185,668			$	7,549,531			$	7,338,886			$	7,089,060			$	6,935,783			$	7,005,783
Core pre-tax pre-provision return on average assets			2.16	%			2.28	%			1.90	%			2.43	%			1.94	%			2.20	%			2.38	%
Net income (loss)		$	72,381			$	6,575			$	31,385			$	40,996			$	30,847			$	25,655			$	29,057
Add: Acquisition related provision (after-tax)			-				20,500				-				-				-				-				-
Add: Acquisition related charges (after-tax)			-				11,110				-				-				1,730				2,932				1,658
Core net income		$	72,381			$	38,185			$	31,385			$	40,996			$	32,577			$	28,587			$	30,715
Diluted shares - Reported			37,351				34,526				37,358				37,357				37,350				37,334				37,324
Add: Dilutive shares for core net income			-				-				-				-				-				-				-
Diluted shares - Core			37,351				34,526				37,358				37,357				37,350				37,334				37,324
Core diluted EPS		$	1.94			$	1.11			$	0.84			$	1.10			$	0.87			$	0.77			$	0.82
Average total assets		$	7,444,791			$	6,185,668			$	7,549,531			$	7,338,886			$	7,089,060			$	6,935,783			$	7,005,783
Core return on average assets			1.96	%			1.24	%			1.67	%			2.27	%			1.83	%			1.64	%			1.76	%
Average total equity		$	989,800			$	858,894			$	1,006,757			$	972,653			$	946,223			$	927,506			$	932,793
Core return on average equity			14.75	%			8.94	%			12.50	%			17.09	%			13.70	%			12.26	%			13.24	%
Average total tangible equity		$	642,990			$	548,430			$	660,785			$	624,996			$	602,495			$	576,457			$	580,449
Core return on average tangible equity			22.70	%			14.00	%			19.05	%			26.60	%			21.51	%			19.73	%			21.28	%

Note: Year-to-date results include six months of operations from UCFC compared to five for comparable period in 2020.
(1) Represents prepayment penalties on FHLB early extinguishments funded by gains on securities sales that are excluded from revenues for efficiency ratio calculation.

 

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