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

Nachrichtenquelle: Business Wire (engl.)
29.07.2021, 22:15  |  101   |   |   

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.

 

Premier Financial Aktie jetzt über den Testsieger (Finanztest 11/2020) handeln, ab 0 € auf Smartbroker.de





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Disclaimer

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 …

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