Premier Financial Corp. Announces Full Year 2023 Results

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

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

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

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

Quarterly results

Capital, deposits and liquidity

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

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

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

Net interest income and margin

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

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

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

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

Non-interest income

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

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

Non-interest expenses

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

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

Credit quality

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

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

Full year results

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

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

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

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

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

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

Total assets at $8.63 billion

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

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

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

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

Dividend to be paid February 16

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

Conference call

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

About Premier Financial Corp.

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

Financial Statements and Highlights Follow

Safe Harbor Statement

This document may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These statements may include, but are not limited to, statements regarding projections, forecasts, goals and plans of Premier Financial Corp. and its management, future movements of interests, loan or deposit production levels, future credit quality ratios, future strength in the market area, and growth projections. These statements do not describe historical or current facts and may be identified by words such as “intend,” “intent,” “believe,” “expect,” “estimate,” “target,” “plan,” “anticipate,” or similar words or phrases, or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “may,” “can,” or similar verbs. There can be no assurances that the forward-looking statements included in this presentation will prove to be accurate. In light of the significant uncertainties in the forward-looking statements, the inclusion of such information should not be regarded as a representation by Premier or any other persons, that our objectives and plans will be achieved. Forward-looking statements involve numerous risks and uncertainties, any one or more of which could affect Premier’s business and financial results in future periods and could cause actual results to differ materially from plans and projections. These risks and uncertainties include, but not limited to: financial markets, our customers, and our business and results of operation; changes in interest rates; disruptions in the mortgage market; risks and uncertainties inherent in general and local banking, insurance and mortgage conditions; political uncertainty; uncertainty in U.S. fiscal or monetary policy; uncertainty concerning or disruptions relating to tensions surrounding the current socioeconomic landscape; competitive factors specific to markets in which Premier and its subsidiaries operate; increasing competition for financial products from other financial institutions and nonbank financial technology companies; future interest rate levels; legislative or regulatory rulemaking or actions; capital market conditions; security breaches or unauthorized disclosure of confidential customer or Company information; interruptions in the effective operation of information and transaction processing systems of Premier or Premier’s vendors and service providers; failures or delays in integrating or adopting new technology; the impact of the cessation of LIBOR interest rates and implementation of a replacement rate; and other risks and uncertainties detailed from time to time in our Securities and Exchange Commission (SEC) filings, including our Annual Report on Form 10-K for the year ended December 31, 2022 and any further amendments thereto. All forward-looking statements made in this presentation are based on information presently available to the management of Premier and speak only as of the date on which they are made. We assume no obligation to update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as may be required by law. As required by U.S. GAAP, Premier will evaluate the impact of subsequent events through the issuance date of its December 31, 2023, consolidated financial statements as part of its Annual Report on Form 10-K to be filed with the SEC. Accordingly, subsequent events could occur that may cause Premier to update its critical accounting estimates and to revise its financial information from that which is contained in this news release.

Non-GAAP Reporting Measures

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

Consolidated Balance Sheets (Unaudited)
Premier Financial Corp.
		December 31,				September 30,				June 30,				March 31,				December 31,
(in thousands)			2023				2023				2023				2023				2022
Assets
Cash and cash equivalents
Cash and amounts due from depositories		$	81,973			$	70,642			$	71,096			$	68,628			$	88,257
Interest-bearing deposits			32,783				46,855				50,631				88,399				39,903
			114,756				117,497				121,727				157,027				128,160
Available-for-sale, carried at fair value			946,708				911,184				961,123				998,128				1,040,081
Equity securities, carried at fair value			5,773				5,860				6,458				6,387				7,832
Securities investments			952,481				917,044				967,581				1,004,515				1,047,913
Loans (1)			6,739,387				6,696,869				6,708,568				6,575,829				6,460,620
Allowance for credit losses - loans			(76,512	)			(76,513	)			(75,921	)			(74,273	)			(72,816	)
Loans, net			6,662,875				6,620,356				6,632,647				6,501,556				6,387,804
Loans held for sale			145,641				135,218				128,079				119,604				115,251
Mortgage servicing rights			18,696				19,642				20,160				20,654				21,171
Accrued interest receivable			33,446				34,648				30,056				29,388				28,709
Federal Home Loan Bank stock			21,760				25,049				39,887				37,056				29,185
Bank Owned Life Insurance			181,544				172,906				171,856				170,841				170,713
Office properties and equipment			56,878				55,679				55,736				55,982				55,541
Real estate and other assets held for sale			243				387				561				393				619
Goodwill			295,602				295,602				295,602				317,988				317,988
Core deposit and other intangibles			12,186				13,220				14,298				17,804				19,074
Other assets			129,841				155,628				138,021				129,508				133,214
Total Assets		$	8,625,949			$	8,562,876			$	8,616,211			$	8,562,316			$	8,455,342
Liabilities and Stockholders’ Equity
Non-interest-bearing deposits		$	1,591,979			$	1,545,595			$	1,573,837			$	1,649,726			$	1,869,509
Interest-bearing deposits			5,209,123				5,127,863				5,007,358				4,969,436				4,893,502
Brokered deposits			341,944				392,181				413,237				154,869				143,708
Total deposits			7,143,046				7,065,639				6,994,432				6,774,031				6,906,719
Advances from FHLB			280,000				339,000				455,000				658,000				428,000
Subordinated debentures			85,229				85,197				85,166				85,123				85,103
Advance payments by borrowers			23,277				22,781				26,045				26,300				34,188
Reserve for credit losses - unfunded commitments			4,307				4,690				5,708				6,577				6,816
Other liabilities			114,463				126,002				112,889				97,835				106,795
Total Liabilities			7,650,322				7,643,309				7,679,240				7,647,866				7,567,621
Stockholders’ Equity
Preferred stock			-				-				-				-				-
Common stock, net			306				306				306				306				306
Additional paid-in-capital			690,585				690,038				689,579				689,807				691,453
Accumulated other comprehensive income (loss)			(153,719	)			(200,282	)			(168,721	)			(153,709	)			(173,460	)
Retained earnings			569,937				560,945				547,336				510,021				502,909
Treasury stock, at cost			(131,482	)			(131,440	)			(131,529	)			(131,975	)			(133,487	)
Total Stockholders’ Equity			975,627				919,567				936,971				914,450				887,721
Total Liabilities and Stockholders’ Equity		$	8,625,949			$	8,562,876			$	8,616,211			$	8,562,316			$	8,455,342
(1) Includes PPP loans of:		$	469			$	526			$	577			$	791			$	1,143

Consolidated Statements of Income (Unaudited)
Premier Financial Corp.
		Three Months Ended																				Year Ended
(in thousands, except per share amounts)		12/31/23				9/30/23				6/30/23				3/31/23				12/31/22				12/31/23				12/31/22
Interest Income:
Loans		$	87,924			$	86,612			$	81,616			$	76,057			$	72,194			$	332,208			$	249,561
Investment securities			7,013				6,943				6,997				7,261				7,605				28,214				26,095
Interest-bearing deposits			740				652				641				444				444				2,478				831
FHLB stock dividends			621				690				905				394				482				2,610				1,225
Total interest income			96,298				94,897				90,159				84,156				80,725				365,510				277,712
Interest Expense:
Deposits			39,250				34,874				26,825				21,458				13,161				122,407				24,909
FHLB advances			3,328				4,597				8,217				5,336				3,941				21,479				6,550
Subordinated debentures			1,169				1,162				1,125				1,075				1,000				4,531				3,327
Notes Payable			-				-				-				-				4				-				5
Total interest expense			43,747				40,633				36,167				27,869				18,106				148,417				34,791
Net interest income			52,551				54,264				53,992				56,287				62,619				217,093				242,921
Provision (benefit) for credit losses - loans			2,143				245				1,410				3,944				3,020				7,742				12,503
Provision (benefit) for credit losses - unfunded
commitments			(382	)			(1,018	)			(870	)			(238	)			(246	)			(2,508	)			1,784
Total provision (benefit) for credit losses			1,761				(773	)			540				3,706				2,774				5,234				14,287
Net interest income after provision			50,790				55,037				53,452				52,581				59,845				211,859				228,634
Non-interest Income:
Service fees and other charges			6,761				6,947				7,190				6,428				6,632				27,325				25,853
Mortgage banking income			802				3,274				2,940				(274	)			(299	)			6,743				9,871
Gain (loss) on sale of non-mortgage loans			94				-				71				-				-				165				-
Gain (loss) on sale of available for sale securities			10				-				(7	)			34				1				37				1
Gain (loss) on equity securities			665				256				71				(1,445	)			1,209				(453	)			(551	)
Gain on sale of insurance agency			-				-				36,296				-				-				36,296				-
Insurance commissions			-				-				4,131				4,725				3,576				8,856				16,228
Wealth management income			1,791				1,509				1,537				1,485				1,582				6,322				5,828
Income from Bank Owned Life Insurance			1,532				1,050				1,015				1,417				984				5,014				3,946
Other non-interest income			134				217				102				92				543				544				984
Total Non-interest Income			11,789				13,253				53,346				12,462				14,228				90,849				62,160
Non-interest Expense:
Compensation and benefits			20,963				21,813				24,175				25,658				24,999				92,609				97,396
Occupancy			3,318				3,145				3,320				3,574				3,383				13,358				14,039
FDIC insurance premium			1,383				1,346				1,786				1,288				1,276				5,803				3,647
Financial institutions tax			761				989				961				852				795				3,563				4,110
Data processing			4,678				4,010				3,640				3,863				3,882				16,191				13,780
Amortization of intangibles			1,033				1,078				1,223				1,270				1,293				4,604				5,450
Transaction costs			-				-				3,652				-				-				3,652				-
Other non-interest expense			5,757				5,671				5,738				6,286				7,400				23,451				26,089
Total Non-interest Expense			37,893				38,052				44,495				42,791				43,028				163,231				164,511
Income before income taxes			24,686				30,238				62,303				22,252				31,045				139,477				126,283
Income tax expense			4,616				5,551				13,912				4,103				5,770				28,182				24,096
Net Income		$	20,070			$	24,687			$	48,391			$	18,149			$	25,275			$	111,295			$	102,187
Earnings per common share:
Basic		$	0.56			$	0.69			$	1.35			$	0.51			$	0.71			$	3.11			$	2.86
Diluted		$	0.56			$	0.69			$	1.35			$	0.51			$	0.71			$	3.11			$	2.85
Average Shares Outstanding:
Basic			35,655				35,730				35,722				35,606				35,589				35,693				35,679
Diluted			35,772				35,794				35,800				35,719				35,790				35,781				35,809

Premier Financial Corp.
Selected Quarterly Information
		Three Months Ended																				Year Ended
(dollars in thousands, except per share data)		12/31/23				9/30/23				6/30/23				3/31/23				12/31/22				12/31/23				12/31/22
Summary of Operations
Tax-equivalent interest income (1)		$	96,340			$	94,951			$	90,226			$	84,260			$	80,889			$	365,777			$	278,526
Interest expense			43,747				40,633				36,167				27,869				18,106				148,417				34,791
Tax-equivalent net interest income (1)			52,593				54,318				54,059				56,391				62,783				217,360				243,735
Provision expense for credit losses			1,761				(773	)			540				3,706				2,774				5,234				14,287
Non-interest income (ex securities
gains/losses)			11,114				12,997				53,282				13,873				13,018				91,265				62,710
Core non-interest income (ex securities
gains/losses) (2)			11,114				12,997				16,986				13,873				13,018				54,969				62,710
Non-interest expense			37,893				38,052				44,495				42,791				43,028				163,231				164,511
Core non-interest expense (2)			37,893				38,052				40,843				42,791				43,028				159,579				164,511
Income tax expense			4,616				5,551				13,912				4,103				5,770				28,182				24,096
Net income			20,070				24,687				48,391				18,149				25,275				111,295				102,187
Core net income (2)			20,070				24,687				24,230				18,149				25,275				87,134				102,187
Tax equivalent adjustment (1)			42				54				67				104				164				267				814
At Period End
Total assets		$	8,625,949			$	8,562,876			$	8,616,211			$	8,562,316			$	8,455,342
Goodwill and intangibles			307,788				308,822				309,900				335,792				337,062
Tangible assets (3)			8,318,161				8,254,054				8,306,311				8,226,524				8,118,280
Earning assets			7,815,540				7,744,522				7,818,825				7,751,130				7,620,056
Loans			6,739,387				6,696,869				6,708,568				6,575,829				6,460,620
Allowance for loan losses			76,512				76,513				75,921				74,273				72,816
Deposits			7,143,046				7,065,639				6,994,432				6,774,031				6,906,719
Stockholders’ equity			975,627				919,567				936,971				914,450				887,721
Stockholders’ equity / assets			11.31	%			10.74	%			10.87	%			10.68	%			10.50	%
Tangible equity (3)			667,839				610,745				627,071				578,658				550,659
Tangible equity / tangible assets			8.03	%			7.40	%			7.55	%			7.03	%			6.78	%
Average Balances
Total assets		$	8,536,193			$	8,582,219			$	8,597,786			$	8,433,100			$	8,304,462			$	8,537,730			$	7,932,398
Earning assets			7,936,648				7,969,363				7,951,520				7,783,850				7,653,648				7,912,651				7,237,621
Loans			6,754,782				6,763,232				6,714,240				6,535,080				6,359,564				6,692,631				5,885,969
Deposits and interest-bearing liabilities			7,447,324				7,486,595				7,538,674				7,385,946				7,278,531				7,464,863				6,882,309
Deposits			7,098,265				7,045,827				6,799,605				6,833,521				6,773,382				6,945,308				6,533,539
Stockholders’ equity			930,835				939,456				921,441				901,587				875,287				923,454				927,534
Goodwill and intangibles			308,243				309,330				334,862				336,418				337,207				322,101				339,255
Tangible equity (3)			622,592				630,126				586,579				565,169				538,080				601,353				588,279
Per Common Share Data
Earnings per share ("EPS") - Basic		$	0.56			$	0.69			$	1.35			$	0.51			$	0.71			$	3.11			$	2.86
EPS - Diluted			0.56				0.69				1.35				0.51				0.71				3.11				2.85
EPS - Core diluted (2)			0.56				0.69				0.68				0.51				0.71				2.44				2.85
Dividends Paid			0.31				0.31				0.31				0.31				0.30				1.24				1.20
Market Value:
High		$	24.87			$	22.89			$	21.01			$	27.80			$	30.51			$	27.99			$	32.52
Low			15.79				15.70				13.60				20.39				26.11				13.60				24.67
Close			24.10				17.06				16.02				20.73				26.97				24.10				26.97
Common Book Value			27.31				25.74				26.23				25.61				24.94
Tangible Common Book Value (3)			18.69				17.09				17.55				16.21				15.47
Shares outstanding, end of period (000s)			35,730				35,731				35,727				35,701				35,591
Performance Ratios (annualized)
Tax-equivalent net interest margin (1)			2.65	%			2.73	%			2.72	%			2.90	%			3.28	%			2.75	%			3.37	%
Return on average assets			0.93	%			1.14	%			2.26	%			0.86	%			1.21	%			1.30	%			1.29	%
Core return on average assets (2)			0.93	%			1.14	%			1.13	%			0.86	%			1.22	%			1.02	%			1.29	%
Return on average equity			8.55	%			10.43	%			21.06	%			8.07	%			11.46	%			12.05	%			11.02	%
Core return on average equity (2)			8.55	%			10.43	%			10.55	%			8.07	%			11.58	%			9.44	%			11.02	%
Return on average tangible equity			12.79	%			15.54	%			33.09	%			12.88	%			18.64	%			18.51	%			17.37	%
Core return on average tangible equity (2)			12.79	%			15.54	%			16.57	%			10.51	%			14.64	%			14.49	%			17.37	%
Efficiency ratio (4)			59.48	%			56.53	%			41.45	%			60.90	%			56.76	%			52.89	%			53.68	%
Core efficiency ratio (2)			59.48	%			56.53	%			57.49	%			60.90	%			56.76	%			58.60	%			53.68	%
Non-interest expenses / average assets			1.76	%			1.76	%			2.08	%			2.06	%			2.06	%			1.91	%			2.07	%
Core non-interest expenses / average assets			1.76	%			1.76	%			1.91	%			2.06	%			2.06	%			1.87	%			2.07	%
Effective tax rate			18.70	%			18.36	%			22.33	%			18.44	%			18.59	%			20.21	%			19.08	%
Common dividend payout ratio			55.36	%			44.93	%			22.96	%			60.78	%			42.25	%			39.87	%			42.11	%

(1) Interest income on tax-exempt securities and loans has been adjusted to a tax-equivalent basis using the statutory federal income tax rate of 21%.

(2) Core items exclude the impact of insurance agency disposition related items. See non-GAAP reconciliations.

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

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

Premier Financial Corp.
Yield Analysis
(dollars in thousands)		Three Months Ended																				Year Ended
		12/31/23				9/30/23				6/30/23				3/31/23				12/31/22				12/31/23				12/31/22
Average Balances
Interest-earning assets:
Loans receivable (1)		$	6,754,782			$	6,763,232			$	6,714,240			$	6,535,080			$	6,359,564			$	6,692,631			$	5,885,969
Securities			1,121,231				1,137,730				1,155,451				1,190,359				1,236,511				1,150,966				1,258,901
Interest Bearing Deposits			36,761				38,210				36,730				35,056				29,884				36,698				70,917
FHLB stock			23,874				30,191				45,099				30,353				28,386				32,356				21,834
Total interest-earning assets			7,936,648				7,969,363				7,951,520				7,790,848				7,654,345				7,912,651				7,237,621
Non-interest-earning assets			599,545				612,856				646,266				642,252				650,117				625,079				694,777
Total assets		$	8,536,193			$	8,582,219			$	8,597,786			$	8,433,100			$	8,304,462			$	8,537,730			$	7,932,398
Deposits and Interest-bearing Liabilities:
Interest bearing deposits		$	5,541,498			$	5,490,945			$	5,195,727			$	5,078,510			$	4,901,412			$	5,328,389			$	4,741,827
FHLB advances and other			263,848				355,576				653,923				467,311				419,761				434,389				263,551
Subordinated debentures			85,211				85,179				85,146				85,114				85,084				85,163				85,036
Notes payable			-				13				-				-				304				3				183
Total interest-bearing liabilities			5,890,557				5,931,713				5,934,796				5,630,935				5,406,561				5,847,944				5,090,597
Non-interest bearing deposits			1,556,767				1,554,882				1,603,878				1,755,011				1,871,970				1,616,919				1,791,712
Total including non-interest-bearing deposits			7,447,324				7,486,595				7,538,674				7,385,946				7,278,531				7,464,863				6,882,309
Other non-interest-bearing liabilities			158,034				156,168				137,671				145,567				150,644				149,413				122,555
Total liabilities			7,605,358				7,642,763				7,676,345				7,531,513				7,429,175				7,614,276				7,004,864
Stockholders' equity			930,835				939,456				921,441				901,587				875,287				923,454				927,534
Total liabilities and stockholders' equity		$	8,536,193			$	8,582,219			$	8,597,786			$	8,433,100			$	8,304,462			$	8,537,730			$	7,932,398
IEAs/IBLs			135	%			134	%			134	%			138	%			142	%			135	%			142	%
Interest Income/Expense
Interest-earning assets:
Loans receivable (2)		$	87,929			$	86,618			$	81,622			$	76,063			$	72,201			$	332,231			$	249,586
Securities (2)			7,050				6,991				7,058				7,359				7,762				28,458				26,884
Interest Bearing Deposits			740				652				641				444				444				2,478				831
FHLB stock			621				690				905				394				482				2,610				1,225
Total interest-earning assets			96,340				94,951				90,226				84,260				80,889				365,777				278,526
Deposits and Interest-bearing Liabilities:
Interest bearing deposits		$	39,250			$	34,874			$	26,825			$	21,458			$	13,161			$	122,407			$	24,909
FHLB advances and other			3,328				4,597				8,217				5,336				3,941				21,479				6,550
Subordinated debentures			1,169				1,162				1,125				1,075				1,001				4,531				3,327
Notes payable			-				-				-				-				3				-				5
Total interest-bearing liabilities			43,747				40,633				36,167				27,869				18,106				148,417				34,791
Non-interest bearing deposits			-				-				-				-				-				-				-
Total including non-interest-bearing deposits			43,747				40,633				36,167				27,869				18,106				148,417				34,791
Net interest income		$	52,593			$	54,318			$	54,059			$	56,391			$	62,783			$	217,360			$	243,735
Less: PPP income			(5	)			(4	)			(5	)			(6	)			(6	)			(20	)			(3,833	)
Less: Acquisition marks accretion			(252	)			(322	)			(380	)			(387	)			(554	)			(1,340	)			(2,606	)
Core net interest income		$	52,336			$	53,992			$	53,674			$	55,998			$	62,223			$	216,000			$	237,296
Annualized Average Rates
Interest-earning assets:
Loans receivable			5.21	%			5.12	%			4.86	%			4.66	%			4.54	%			4.96	%			4.24	%
Securities (3)			2.52	%			2.46	%			2.44	%			2.47	%			2.51	%			2.47	%			2.14	%
Interest Bearing Deposits			8.05	%			6.83	%			6.98	%			5.07	%			5.94	%			6.75	%			1.17	%
FHLB stock			10.40	%			9.14	%			8.03	%			5.19	%			6.79	%			8.07	%			5.61	%
Total interest-earning assets			4.86	%			4.77	%			4.54	%			4.33	%			4.23	%			4.62	%			3.85	%
Deposits and Interest-bearing Liabilities:
Interest bearing deposits			2.83	%			2.54	%			2.07	%			1.69	%			1.07	%			2.30	%			0.53	%
FHLB advances and other			5.05	%			5.17	%			5.03	%			4.57	%			3.76	%			4.94	%			2.49	%
Subordinated debentures			5.49	%			5.46	%			5.29	%			5.05	%			4.71	%			5.32	%			3.91	%
Notes payable			-				-				-				-				3.95	%			0.00	%			2.73	%
Total interest-bearing liabilities			2.97	%			2.74	%			2.44	%			1.98	%			1.34	%			2.54	%			0.68	%
Non-interest bearing deposits			-				-				-				-				-				-				-
Total including non-interest-bearing deposits			2.35	%			2.17	%			1.92	%			1.51	%			1.00	%			1.99	%			0.51	%
Net interest spread			1.89	%			2.03	%			2.10	%			2.35	%			2.89	%			2.08	%			3.17	%
Net interest margin (4)			2.65	%			2.73	%			2.72	%			2.90	%			3.28	%			2.75	%			3.37	%
Core net interest margin (4)			2.64	%			2.71	%			2.70	%			2.88	%			3.25	%			2.73	%			3.28	%
(1) Includes average PPP loans of:		$	495			$	553			$	673			$	965			$	1,160			$	670			$	12,102
(2) Interest on certain tax exempt loans and securities is not taxable for Federal income tax purposes. In order to compare the tax-exempt yields on these assets to taxable yields, the interest earned on these assets is adjusted to a pre-tax equivalent amount based on the marginal corporate federal income tax rate of 21%.
(3) Securities yield = annualized interest income divided by the average balance of securities, excluding average unrealized gains/losses.
(4) Net interest margin is tax equivalent net interest income divided by average interest-earning assets. Core net interest margin represents net interest margin excluding PPP and acquisition marks accretion.

Premier Financial Corp.
Deposits and Liquidity
(dollars in thousands)
		As of and for the Three Months Ended
		12/31/23				9/30/23				6/30/23				3/31/23				12/31/22
Ending Balances
Non-interest-bearing demand deposits		$	1,591,979			$	1,545,595			$	1,573,837			$	1,649,726			$	1,869,509
Savings deposits			677,679				709,938				748,392				775,186				797,376
Interest-bearing demand deposits			565,757				580,069				594,325				646,329				653,960
Money market account deposits			1,374,526				1,279,551				1,282,721				1,342,451				1,493,729
Time deposits			998,002				925,353				904,717				856,720				768,678
Public funds, ICS and CDARS deposits			1,593,159				1,632,952				1,477,203				1,348,750				1,179,759
Brokered deposits			341,944				392,181				413,237				154,869				143,708
Total deposits		$	7,143,046			$	7,065,639			$	6,994,432			$	6,774,031			$	6,906,719
Average Balances
Non-interest-bearing demand deposits		$	1,556,767			$	1,554,882			$	1,603,878			$	1,755,011			$	1,871,970
Savings deposits			691,295				728,545				762,074				782,215				806,653
Interest-bearing demand deposits			557,210				575,744				603,572				637,423				651,685
Money market account deposits			1,331,623				1,278,381				1,311,177				1,430,905				1,418,549
Time deposits			959,420				912,579				872,991				825,652				685,453
Public funds, ICS and CDARS deposits			1,614,339				1,573,213				1,399,749				1,232,230				1,235,772
Brokered deposits			387,611				422,483				246,164				170,085				103,300
Total deposits		$	7,098,265			$	7,045,827			$	6,799,605			$	6,833,521			$	6,773,382
Average Rates
Non-interest-bearing demand deposits			0.00	%			0.00	%			0.00	%			0.00	%			0.00	%
Savings deposits			0.03	%			0.03	%			0.02	%			0.02	%			0.02	%
Interest-bearing demand deposits			0.13	%			0.11	%			0.10	%			0.07	%			0.07	%
Money market account deposits			2.65	%			2.02	%			1.73	%			1.54	%			0.81	%
Time deposits			3.15	%			2.68	%			2.27	%			1.83	%			1.05	%
Public funds, ICS and CDARS deposits			4.30	%			4.18	%			3.71	%			3.32	%			2.41	%
Brokered deposits			5.46	%			5.36	%			4.92	%			4.19	%			3.32	%
Total deposits			2.21	%			1.98	%			1.58	%			1.26	%			0.78	%
Other Deposits Data
Loans/Deposits Ratio			94.3	%			94.8	%			95.9	%			97.1	%			93.5	%
Uninsured deposits %			33.1	%			32.8	%			31.5	%			32.3	%			35.3	%
Adjusted uninsured deposits % (1)			18.9	%			17.7	%			17.3	%			19.6	%			22.2	%
Top 20 depositors %			13.9	%			14.1	%			12.4	%			12.1	%			5.4	%
Public funds %			17.9	%			18.8	%			17.5	%			16.5	%			14.8	%
Average account size (excluding brokered)		$	26.9			$	27.1			$	26.7			$	27.0			$	27.8
Securities Data
Held-to-maturity (HTM) at fair value		$	-			$	-			$	-			$	-			$	-
Available-for-sale (AFS) at fair value (2)			946,708				911,184				961,123				998,128				1,040,081
Equity investment at fair value (3)			5,773				5,860				6,458				6,387				7,832
Total securities at fair value		$	952,481			$	917,044			$	967,581			$	1,004,515			$	1,047,913
Cash+Securities/Assets			12.4	%			12.1	%			12.6	%			13.6	%			13.9	%
Projected AFS cash flow in next 12 months		$	69,067			$	66,495			$	64,687			$	73,184			$	73,319
AFS average life (years)			6.2				6.5				6.5				6.4				6.5
Liquidity Sources
Cash and cash equivalents		$	114,756			$	117,497			$	121,727			$	157,027			$	128,160
Unpledged securities at fair value			314,385				280,916				298,471				211,468				288,134
FHLB borrowing capacity			1,336,707				1,311,091				1,542,459				1,358,650				1,528,978
Brokered deposits			513,767				316,697				288,719				524,889				549,370
Bank and parent lines of credit			70,000				70,000				70,000				70,000				70,000
Federal Reserve - Discount Window and BTFP (4)			620,518				471,395				491,141				129,918				44,471
Total		$	2,970,133			$	2,567,596			$	2,812,517			$	2,451,952			$	2,609,113
Total liquidity to adjusted uninsured deposits ratio			218.3	%			204.0	%			230.5	%			183.2	%			168.9	%

(1) Adjusted for collateralized deposits, other insured deposits and intra-company accounts.

(2) Mark-to-market included in accumulated other comprehensive income.

(3) Mark-to-market included in net income each quarter.

(4) Includes borrowing capacity related to unpledged securities at par value in excess of fair value under Bank Term Funding Program.

Premier Financial Corp.
Loans and Capital
(dollars in thousands)
		12/31/23				9/30/23				6/30/23				3/31/23				12/31/22
Loan Portfolio Composition
Residential real estate		$	1,810,265			$	1,797,676			$	1,711,632			$	1,624,331			$	1,535,574
Residential real estate construction			28,794				51,637				111,708				141,209				176,737
Total residential loans			1,839,059				1,849,313				1,823,340				1,765,540				1,712,311
Commercial real estate			2,839,905				2,820,410				2,848,410				2,813,441				2,762,311
Commercial construction			528,563				502,502				472,328				440,510				428,743
Commercial excluding PPP			1,056,334				1,038,939				1,068,795				1,060,351				1,054,037
Core commercial loans (1)			4,424,802				4,361,851				4,389,533				4,314,302				4,245,091
Consumer direct/indirect			193,830				203,800				210,390				212,299				213,405
Home equity and improvement lines			267,960				269,053				272,792				271,676				277,613
Total consumer loans			461,790				472,853				483,182				483,975				491,018
Deferred loan origination fees			13,267				12,326				11,936				11,221				11,057
Core loans (1)			6,738,918				6,696,343				6,707,991				6,575,038				6,459,477
PPP loans			469				526				577				791				1,143
Total loans		$	6,739,387			$	6,696,869			$	6,708,568			$	6,575,829			$	6,460,620
Loans held for sale		$	145,641			$	135,218			$	128,079			$	119,631			$	115,251
Core residential loans (1)			1,984,700				1,984,531				1,951,419				1,885,171				1,827,562
Total loans including loans held for sale but excluding PPP			6,884,559				6,831,561				6,836,070				6,694,669				6,574,728
Undisbursed construction loan funds - residential		$	72,748			$	82,689			$	102,198			$	157,934			$	209,306
Undisbursed construction loan funds - commercial			208,718				284,610				353,455				446,294				463,469
Undisbursed construction loan funds - total			281,466				367,299				455,653				604,228				672,775
Total construction loans including undisbursed funds		$	838,823			$	921,438			$	1,039,689			$	1,185,947			$	1,278,255
Gross loans (2)		$	7,007,586			$	7,051,842			$	7,152,285			$	7,168,836			$	7,122,338
Fixed rate loans %			49.3	%			49.8	%			49.8	%			49.5	%			48.8	%
Floating rate loans %			15.6	%			15.8	%			15.9	%			13.4	%			14.3	%
Adjustable rate loans repricing within 1 year %			3.4	%			2.9	%			1.5	%			2.0	%			2.6	%
Adjustable rate loans repricing over 1 year %			31.7	%			31.5	%			32.8	%			35.1	%			34.3	%
Commercial Real Estate Loans Composition
Non owner occupied excluding office		$	1,027,801			$	1,023,585			$	1,012,400			$	947,442			$	934,760
Non owner occupied office			205,302				207,869				225,046				220,668				222,300
Owner occupied excluding office			653,849				597,303				603,650				609,203				578,514
Owner occupied office			113,679				106,761				107,240				109,014				108,087
Multifamily			642,651				627,602				633,909				661,996				660,823
Agriculture land			121,544				119,710				123,104				122,384				125,384
Other commercial real estate			75,079				137,580				143,061				142,734				132,443
Total commercial real estate loans		$	2,839,905			$	2,820,410			$	2,848,410			$	2,813,441			$	2,762,311
Capital Balances
Total equity		$	975,627			$	919,567			$	936,971			$	914,450			$	887,721
Less: Regulatory goodwill and intangibles			302,706				303,740				304,818				330,711				331,981
Less: Accumulated other comprehensive income/(loss) ("AOCI")			(153,719	)			(200,282	)			(168,721	)			(153,709	)			(173,460	)
Common equity tier 1 capital ("CET1")			826,640				816,109				800,874				737,448				729,200
Add: Tier 1 subordinated debt			35,000				35,000				35,000				35,000				35,000
Tier 1 capital			861,640				851,109				835,874				772,448				764,200
Add: Regulatory allowances			80,231				80,791				80,812				80,003				78,780
Add: Tier 2 subordinated debt			50,000				50,000				50,000				50,000				50,000
Total risk-based capital		$	991,871			$	981,900			$	966,686			$	902,451			$	892,980
Total risk-weighted assets		$	7,062,671			$	7,329,471			$	7,381,940			$	7,370,704			$	7,355,979
Capital Ratios
CET1 Ratio			11.70	%			11.13	%			10.85	%			10.01	%			9.91	%
CET1 Ratio including AOCI			9.53	%			8.40	%			8.56	%			7.92	%			7.55	%
Tier 1 Capital Ratio			12.20	%			11.61	%			11.32	%			10.48	%			10.39	%
Tier 1 Capital Ratio including AOCI			10.02	%			8.88	%			9.04	%			8.39	%			8.03	%
Total Capital Ratio			14.04	%			13.39	%			13.10	%			12.24	%			12.14	%
Total Capital Ratio including AOCI			11.87	%			10.66	%			10.81	%			10.16	%			9.78	%

(1) Core loans represents total loans excluding undisbursed loan funds, deferred loan origination fees and PPP loans. Core commercial loans represents total commercial real estate, commercial and commercial construction excluding commercial undisbursed loan funds, deferred loan origination fees and PPP loans. Core residential loans represents total loans held for sale, one to four family residential real estate and residential construction excluding residential undisbursed loan funds and deferred loan origination fees.

(2) Gross loans represent total loans including undisbursed construction funds but excluding deferred loan origination fees.

Premier Financial Corp.
Loan Delinquency Information
(dollars in thousands)		Total Balance				Current				30 to 89 days past due				% of Total			Non Accrual Loans				% of Total
December 31, 2023
One to four family residential real estate		$	1,810,265			$	1,785,935			$	9,429			0.52	%		$	14,901			0.82	%
Construction			838,823				838,715				108			0.01	%			-			0.00	%
Commercial real estate			2,839,905				2,833,233				475			0.02	%			6,197			0.22	%
Commercial			1,056,803				1,045,185				2,623			0.25	%			8,995			0.85	%
Home equity and improvement			267,960				263,134				2,887			1.08	%			1,939			0.72	%
Consumer finance			193,830				185,041				5,330			2.75	%			3,459			1.78	%
Gross loans		$	7,007,586			$	6,951,243			$	20,852			0.30	%		$	35,491			0.51	%
September 30, 2023
One to four family residential real estate		$	1,797,676			$	1,778,106			$	7,857			0.44	%		$	11,713			0.65	%
Construction			921,438				921,438				-			0.00	%			-			0.00	%
Commercial real estate			2,820,410				2,809,421				24			0.00	%			10,965			0.39	%
Commercial			1,039,465				1,025,632				1,670			0.16	%			12,163			1.17	%
Home equity and improvement			269,053				263,806				3,471			1.29	%			1,776			0.66	%
Consumer finance			203,800				196,754				4,200			2.06	%			2,846			1.40	%
Gross loans		$	7,051,842			$	6,995,157			$	17,222			0.24	%		$	39,463			0.56	%
December 31, 2022
One to four family residential real estate		$	1,535,574			$	1,520,074			$	6,792			0.44	%		$	8,708			0.57	%
Construction			1,278,255				1,277,818				437			0.03	%			-			0.00	%
Commercial real estate			2,762,311				2,747,539				1,205			0.04	%			13,567			0.49	%
Commercial			1,055,180				1,047,829				497			0.05	%			6,854			0.65	%
Home equity and improvement			277,613				270,138				5,216			1.88	%			2,259			0.81	%
Consumer finance			213,405				206,779				4,192			1.96	%			2,434			1.14	%
Gross loans		$	7,122,338			$	7,070,177			$	18,339			0.26	%		$	33,822			0.47	%
Loan Risk Ratings Information
(dollars in thousands)		Total Balance				Pass Rated				Special Mention				% of Total			Classified				% of Total
December 31, 2023
One to four family residential real estate		$	1,800,383			$	1,785,839			$	594			0.03	%		$	13,950			0.77	%
Construction			838,823				831,333				7,490			0.89	%			-			0.00	%
Commercial real estate			2,837,865				2,760,804				50,784			1.79	%			26,277			0.93	%
Commercial			1,054,834				975,264				57,634			5.46	%			21,936			2.08	%
Home equity and improvement			266,082				264,664				-			0.00	%			1,418			0.53	%
Consumer finance			193,626				190,393				-			0.00	%			3,233			1.67	%
PCD loans			15,973				12,899				197			1.23	%			2,877			18.01	%
Gross loans		$	7,007,586			$	6,821,196			$	116,699			1.67	%		$	69,691			0.99	%
September 30, 2023
One to four family residential real estate		$	1,786,659			$	1,775,530			$	422			0.02	%		$	10,707			0.60	%
Construction			921,438				913,605				7,833			0.85	%			-			0.00	%
Commercial real estate			2,819,121				2,738,398				54,523			1.93	%			26,200			0.93	%
Commercial			1,034,943				982,927				31,930			3.09	%			20,086			1.94	%
Home equity and improvement			267,106				265,975				-			0.00	%			1,131			0.42	%
Consumer finance			203,584				200,965				-			0.00	%			2,619			1.29	%
PCD loans			18,991				13,374				2,814			14.82	%			2,803			14.76	%
Gross loans		$	7,051,842			$	6,890,774			$	97,522			1.38	%		$	63,546			0.90	%
December 31, 2022
One to four family residential real estate		$	1,524,029			$	1,514,719			$	935			0.06	%		$	8,375			0.55	%
Construction			1,278,255				1,278,255				-			0.00	%			-			0.00	%
Commercial real estate			2,760,766				2,694,443				46,029			1.67	%			20,294			0.74	%
Commercial			1,050,122				1,016,973				26,319			2.51	%			6,830			0.65	%
Home equity and improvement			275,204				273,613				-			0.00	%			1,591			0.58	%
Consumer finance			213,131				210,760				-			0.00	%			2,371			1.11	%
PCD loans			20,831				13,904				2,590			12.43	%			4,337			20.82	%
Gross loans		$	7,122,338			$	7,002,667			$	75,873			1.07	%		$	43,798			0.61	%

Premier Financial Corp.
Mortgage and Credit Information
(dollars in thousands)
		As of and for the Three Months Ended																				Year Ended
Mortgage Banking Summary		12/31/23				9/30/23				6/30/23				3/31/23				12/31/22				12/31/23				12/31/22
Revenue from sales and servicing of mortgage loans:
Mortgage banking gains, net		$	439			$	2,584			$	2,242			$	(837	)		$	(1,285	)		$	4,429			$	5,787
Mortgage loan servicing revenue (expense):
Mortgage loan servicing revenue			1,844				1,850				1,845				1,888				1,862				7,427				7,464
Amortization of mortgage servicing rights			(1,257	)			(1,291	)			(1,277	)			(1,219	)			(1,271	)			(5,044	)			(5,399	)
Mortgage servicing rights valuation adjustments			(224	)			131				130				(106	)			396				(69	)			2,019
			363				690				698				563				987				2,314				4,084
Total revenue from sale/servicing of mortgage loans		$	802			$	3,274			$	2,940			$	(274	)		$	(298	)		$	6,743			$	9,871
Mortgage servicing rights:
Balance at beginning of period		$	20,174			$	20,823			$	21,447			$	21,858			$	21,915			$	21,858			$	22,244
Loans sold, servicing retained			535				642				653				808				1,214				2,638				5,013
Amortization			(1,257	)			(1,291	)			(1,277	)			(1,219	)			(1,271	)			(5,044	)			(5,399	)
Balance at end of period			19,452				20,174				20,823				21,447				21,858				19,452				21,858
Valuation allowance:
Balance at beginning of period			(532	)			(663	)			(793	)			(687	)			(1,083	)			(687	)			(2,706	)
Impairment recovery (charges)			(224	)			131				130				(106	)			396				(69	)			2,019
Balance at end of period			(756	)			(532	)			(663	)			(793	)			(687	)			(756	)			(687	)
Net carrying value at end of period		$	18,696			$	19,642			$	20,160			$	20,654			$	21,171			$	18,696			$	21,171
Allowance for credit losses - loans
Beginning allowance		$	76,513			$	75,921			$	74,273			$	72,816			$	70,626			$	72,816			$	66,468
Provision (benefit) for credit losses - loans			2,143				245				1,410				3,944				3,020				7,742				12,503
Net recoveries (charge-offs)			(2,144	)			347				238				(2,487	)			(830	)			(4,046	)			(6,155	)
Ending allowance		$	76,512			$	76,513			$	75,921			$	74,273			$	72,816			$	76,512			$	72,816
Total loans		$	6,739,387			$	6,696,869			$	6,708,568			$	6,575,829			$	6,460,620
Less: PPP loans			(469	)			(526	)			(577	)			(791	)			(1,143	)
Total loans ex PPP		$	6,738,918			$	6,696,343			$	6,707,991			$	6,575,038			$	6,459,477
Allowance for credit losses (ACL)		$	76,512			$	76,513			$	75,921			$	74,273			$	72,816
Add: Unaccreted purchase accounting marks			1,160				1,526				1,901				2,301				2,706
Adjusted ACL		$	77,672			$	78,039			$	77,822			$	76,574			$	75,522
ACL/Loans			1.14	%			1.14	%			1.13	%			1.13	%			1.13	%
Adjusted ACL/Loans ex PPP			1.15	%			1.17	%			1.16	%			1.16	%			1.17	%
Credit Quality
Total non-performing loans (1)		$	35,491			$	39,463			$	36,991			$	34,377			$	33,822
Real estate owned (REO)			243				387				561				393				619
Total non-performing assets (2)		$	35,734			$	39,850			$	37,552			$	34,770			$	34,441
Net charge-offs (recoveries)			2,144				(347	)			(238	)			2,487				830
Allowance for credit losses / non-performing assets			214.12	%			192.00	%			202.18	%			213.61	%			211.42	%
Allowance for credit losses / non-performing loans			215.58	%			193.89	%			205.24	%			216.05	%			215.29	%
Non-performing assets / loans plus REO			0.53	%			0.60	%			0.56	%			0.53	%			0.53	%
Non-performing assets / total assets			0.41	%			0.47	%			0.44	%			0.41	%			0.41	%
Net charge-offs (recoveries) / average loans			0.13	%			-0.02	%			-0.01	%			0.15	%			0.05	%
Net charge-offs (recoveries) / average loans LTM			0.06	%			0.04	%			0.14	%			0.14	%			0.10	%

(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.

Premier Financial Corp.
Non-GAAP Reconciliations
		Three Months Ended																				Year Ended
(In thousands, except per share and ratio data)		12/31/23				9/30/23				6/30/23				3/31/23				12/31/22				12/31/23				12/31/22
Total non-interest expenses		$	37,893			$	38,052			$	44,495			$	42,791			$	43,028			$	163,231			$	164,511
Less: Transaction costs (pre-tax)			-				-				3,652				-				-				3,652				-
Core non-interest expenses		$	37,893			$	38,052			$	40,843			$	42,791			$	43,028			$	159,579			$	164,511
Average total assets		$	8,536,193			$	8,582,219			$	8,597,786			$	8,433,100			$	8,304,462			$	8,537,730			$	7,932,398
Core non-interest expenses / average assets			1.76	%			1.76	%			1.91	%			2.06	%			2.06	%			1.87	%			2.07	%
Non-interest income		$	11,789			$	13,253			$	53,346			$	12,462			$	14,228			$	90,849			$	62,160
Less: Gain on sale of insurance agency (pre-tax)			-				-				36,296				-				-				36,296				-
Core non-interest income		$	11,789			$	13,253			$	17,050			$	12,462			$	14,228			$	54,553			$	62,160
Less: Securities gains (losses)			675				256				64				(1,411	)			1,210				(416	)			(550	)
Core non-interest income (ex securities gains/losses)		$	11,114			$	12,997			$	16,986			$	13,873			$	13,018			$	54,969			$	62,710
Tax-equivalent net interest income		$	52,593			$	54,318			$	54,059			$	56,391			$	62,783			$	217,360			$	243,735
Core non-interest income (ex securities gains/losses)			11,114				12,997				16,986				13,873				13,018				54,969				62,710
Total core revenues			63,707				67,315				71,045				70,264				75,801				272,329				306,445
Core non-interest expenses		$	37,893			$	38,052			$	40,843			$	42,791			$	43,028			$	159,579			$	164,511
Core efficiency ratio			59.48	%			56.53	%			57.49	%			60.90	%			56.76	%			58.60	%			53.68	%
Income (loss) before income taxes		$	24,686			$	30,238			$	62,303			$	22,252			$	31,045			$	139,477			$	126,283
Add: Provision (benefit) for credit losses			1,761				(773	)			540				3,706				2,774				5,234				14,287
Pre-tax pre-provision income			26,447				29,465				62,843				25,958				33,819				144,711				140,570
Add: Transaction costs (pre-tax)			-				-				3,652				-				-				3,652				-
Less: Gain on sale of insurance agency (pre-tax)			-				-				36,296				-				-				36,296				-
Core pre-tax pre-provision income		$	26,447			$	29,465			$	30,199			$	25,958			$	33,819			$	112,067			$	140,570
Average total assets		$	8,536,193			$	8,582,219			$	8,597,786			$	8,433,100			$	8,304,462			$	8,537,730			$	7,932,398
Core pre-tax pre-provision return on average assets			1.23	%			1.36	%			1.41	%			1.25	%			1.62	%			1.31	%			1.77	%
Net income (loss)		$	20,070			$	24,687			$	48,391			$	18,149			$	25,275			$	111,295			$	102,187
Less: Gain on sale of insurance agency (pre-tax)			-				-				36,296				-				-				36,296				-
Add: Transaction costs (pre-tax)			-				-				3,652				-				-				3,652				-
Add: Tax impact of sale transaction			-				-				8,483				-				-				8,483				-
Core net income		$	20,070			$	24,687			$	24,230			$	18,149			$	25,275			$	87,134			$	102,187
Diluted shares - Reported			35,772				35,794				35,800				35,719				35,790				35,781				35,809
Core diluted EPS		$	0.56			$	0.69			$	0.68			$	0.51			$	0.71			$	2.44			$	2.85
Average total assets		$	8,536,193			$	8,582,219			$	8,597,786			$	8,433,100			$	8,304,462			$	8,537,730			$	7,932,398
Core return on average assets			0.93	%			1.14	%			1.13	%			0.87	%			1.21	%			1.02	%			1.29	%
Average total equity		$	930,835			$	939,456			$	921,441			$	901,587			$	875,287			$	923,454			$	927,534
Core return on average equity			8.55	%			10.43	%			10.55	%			8.16	%			11.46	%			9.44	%			11.02	%
Average total tangible equity		$	622,592			$	630,126			$	586,579			$	565,169			$	538,080			$	601,353			$	588,279
Core return on average tangible equity			12.79	%			15.54	%			16.57	%			13.02	%			18.64	%			14.49	%			17.37	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240123702817/en/

The Premier Financial Stock at the time of publication of the news with a fall of -1,77 % to 23,35USD on Nasdaq stock exchange (23. Januar 2024, 22:00 Uhr).