Premier Financial Corp. Announces First Quarter 2023 Results Including Solid Capital and Liquidity Levels

Rhea-AI Summary

Premier Financial Corp. (Nasdaq: PFC) reported its first quarter 2023 financial results, revealing a net income of $18.1 million, or $0.51 per diluted share, down from $25.3 million, or $0.71 per share in the previous quarter. The CET1 ratio improved to 9.96%, while the tangible equity ratio rose to 7.03%. Loan growth reached $115.2 million (7.1% annualized), with a notable increase in commercial loans. The company declared a dividend of $0.31 per share, reflecting a 3.3% year-over-year increase. However, net interest income decreased by 10% to $56.4 million, and non-interest income fell 12% to $12.5 million due to fluctuations in mortgage banking and securities. Total deposits declined by 2%, largely due to a drop in non-interest bearing deposits, although customer deposits increased by $14.2 million in March 2023.

Positive

• CET1 ratio increased to 9.96%.
• Tangible equity ratio improved to 7.03%.
• Loan growth of $115.2 million (up 7.1% annualized).
• Dividend declared of $0.31 per share, up 3.3% year-over-year.

Negative

• Net income decreased to $18.1 million from $25.3 million in the previous quarter.
• Net interest income dropped by 10% to $56.4 million.
• Total deposits declined 2% or $132.7 million during the quarter.

First Quarter 2023 Highlights

• CET1 ratio increased 5 basis points to 9.96% and tangible equity ratio increased 25 basis points to 7.03% from the prior quarter
• Delinquencies decreased $7.2 million or 39% to 0.16% of loans from the prior quarter
• Loan growth of $115.2 million (up 7.1% annualized) including $69.2 million for commercial loans excluding PPP (up 6.5% annualized)
• Declared dividend of $0.31 per share, up 3.3% from prior year comparable period

DEFIANCE, Ohio--(BUSINESS WIRE)-- Premier Financial Corp. (Nasdaq: PFC) (“Premier” or the “Company”) announced today 2023 first quarter results including net income of $18.1 million or $0.51 per diluted common share, compared to $25.3 million, or $0.71 per diluted common share, for the fourth quarter of 2022. First quarter 2023 results include the impact of the following items: i) equity investment losses of $1.4 million pre-tax or $0.03 per diluted share after-tax; ii) a negative mortgage pipeline hedge adjustment of $1.5 million pre-tax or $0.03 per diluted share after-tax; iii) a commercial loan charge-off related to an annual appraisal update of $1.5 million pre-tax or $0.03 per diluted share after-tax; and iv) timing-related expenses, including payroll taxes and benefits on annual incentive payouts, of $1.5 million pre-tax or $0.03 per diluted share after-tax. Excluding the impact of these items, first quarter 2023 earnings would be $0.63 per diluted share. Separately, expense savings planned for the remainder of the year represent an estimated $3.0 million pre-tax per quarter. Additionally, the Company estimates that each 25 basis point change in the Federal Funds rate could impact net interest income by approximately $1.5 million on a pre-tax annualized basis based on the Company’s balance sheet as of March 31, 2023.

“Over the course of the first quarter, the organization was fully engaged in deposit retention and expansion efforts with our consumer, wealth, commercial, and public funds clients,” said Gary Small, President and CEO of Premier. “The industry is operating in a very dynamic rate environment and we feel the impact of increasing deposit costs and margin compression when combining the Fed’s first quarter rate increases with the full quarter impact of the fourth quarter 2022 increases. Pricing and promotional adjustments over the course of the quarter resulted in a leveling off of funding costs in February and March. The well-documented industry challenges faced in March prompted additional outreach and conversation with our clients. Topics ranged from deposit insurance to safety and soundness, liquidity, and capital. The Premier team did an excellent job of sharing our organization’s strengths in these areas and by providing solutions as needed. I want to thank our clients for their confidence in the organization. March saw a slight increase in customer deposits for Premier, demonstrating the effective effort by our team of banking professionals. As outlined above, the reported earnings figure reflected a number of issues unique to the quarter. The impact was such that we felt it prudent to provide a bridge to a more normalized quarterly expectation for 2023. We have included the impact of cost reduction initiatives and the expected effect on ongoing performance. The leadership team is committed to taking appropriate steps to help offset margin challenges, while continuing to execute on strategic initiatives important to the long-term health of the organization.”

Quarterly results

Capital, deposits and liquidity

Capital and ratios continued to improve during the first quarter of 2023. Total equity increased $26.7 million, or 3%, including a $19.8 million improvement in accumulated other comprehensive income (“AOCI”) primarily due to a positive valuation adjustment on the available-for-sale (“AFS”) securities portfolio. Tangible equity increased $28.0 million, or 5%, and the tangible equity ratio increased 25 basis points to 7.03%, or 8.90% excluding AOCI. Regulatory ratios also improved during the first quarter of 2023 including CET1 of 9.96%, Tier 1 of 10.43% and Total Capital of 12.18%, each up 4-5 basis points. All of these ratios also exceed well-capitalized guidelines pro forma for AOCI, including CET1 of 7.88%, Tier 1 of 8.35% and Total Capital of 10.11%.

Total deposits declined 2% or $132.7 million during the first quarter of 2023, due to a $219.8 million decline in non-interest bearing deposits offset partly by increases of $75.9 million of interest-bearing customer deposits and $11.2 million of brokered deposits. The net decrease in non-brokered deposits occurred prior to the recent industry turmoil as total customer deposits increased by $14.2 million during the month of March. The full quarter decline in total and non-interest bearing deposits was primarily related to $107 million of funds used by commercial clients for non-recurring business dispositions and acquisitions, as well as a utilization of funds drawn on commercial lines of credit prior to year-end and then repaid in early 2023. Separately, $67 million of the decrease in non-interest-bearing deposits was due to transfers into IntraFi Cash Service (“ICS”) and other interest-bearing deposits or invested via wealth management with the Company.

Average interest-bearing deposit costs increased 62 basis points to 1.69% for the first quarter of 2023. This increase was primarily due to Public/ICS/CDARS as customers sought additional deposit insurance protection, money market accounts as a result of recent Company promotions and re-pricing, and time deposits as customers migrated to obtain yield compared to savings and checking accounts. However, the pace of increase slowed during the quarter as a result of actions taken by the Company, such that average interest-bearing deposit costs only increased two basis points to 1.79% during the month of March (from 1.77% in February), representing a cumulative beta of 35% compared to the change in the monthly average effective Federal Funds rate that increased 457 basis points to 4.65% since December 2021, as reported by the Federal Reserve Economic Data.

Uninsured deposits at March 31, 2023 were 32.3% of total deposits, or 19.6% adjusting for collateralized deposits, other uninsured deposits and internal company accounts. Total quantifiable liquidity sources totaled $2.45 billion, or 183.2% of adjusted uninsured deposits, and were comprised of the following at March 31, 2023:

• $157.0 million of cash and cash equivalents with a 4.90% Federal Reserve rate;
• $211.5 million of unpledged securities with an average yield of 2.97%;
• $1.36 billion of FHLB borrowing capacity with an overnight borrowing rate of 4.86%;
• $524.9 million of brokered deposits based on a Company policy limit of 10% of deposits, with market pricing dependent on brokers and duration;
• $70.0 million of unused lines of credit with an average borrowing rate of 5.80%; and
• $129.9 million of borrowing capacity at the Federal Reserve with an average rate of 4.89%.

Additional liquidity sources include deposit growth, cash earnings in excess of dividends, loan repayments/participations/sales, and securities cash flows, which are estimated to be $73.2 million over the next 12 months. Further, the Company is in the process of establishing eligibility for the Federal Reserve Borrower-In-Custody Collateral Program, which is estimated to increase borrowing capacity by at least $300 million.

Net interest income and margin

Net interest income of $56.4 million on a tax equivalent (“TE”) basis in the first quarter of 2023 was down 10% from $62.8 million in the fourth quarter of 2022 and 3% from $58.1 million in the first quarter of 2022. The TE net interest margin of 2.90% in the first quarter of 2023 decreased 38 basis points from 3.28% in the fourth quarter of 2022 and 54 basis points from 3.44% in the first quarter of 2022. Results for all periods include the impact of PPP as well as acquisition marks and related accretion. First quarter 2023 includes $166 thousand of accretion in interest income, $221 thousand of accretion in interest expense, and $6 thousand of interest income on average balances of $965 thousand for PPP.

Excluding the impact of acquisition marks accretion and PPP loans, core net interest income was $56.0 million, down 10% from $62.2 million in the fourth quarter of 2022 but up 4% from $53.7 million in the first quarter of 2022. Additionally, the core net interest margin was 2.88% for the first quarter of 2023, down 37 basis points from 3.25% for the fourth quarter of 2022 and 32 basis points from 3.20% for the first quarter of 2022. These results are positively impacted by the combination of loan growth and higher loan yields, which were 4.66% for the first quarter of 2023 compared to 4.54% in the fourth quarter of 2022 and 4.11% in the first quarter of 2022. Excluding the impact of PPP, the balance sheet hedge and acquisition marks accretion, loan yields were 4.89% in March 2023 for an increase of 117 basis points since December 2021, which represents a cumulative beta of 25% compared to the change in the monthly average effective Federal Funds rate for the same period.

The cost of funds in the first quarter of 2023 was 1.51%, up 51 basis points from the fourth quarter of 2022 and up 133 basis points from the first quarter of 2022. The year-over-year increase is largely due to utilization of higher cost FHLB borrowings in support of loan growth in excess of deposit growth during 2022. The linked quarter increase is due to higher rates on FHLB borrowings and higher average deposit costs discussed above.

“Loan balances increased 1.8% for the quarter primarily driven by funding on construction commitments made in prior periods,” Small added. “Loan growth is expected to be modest over the course of the year in light of economic uncertainties and our focus on shoring up funding costs during the year.”

Non-interest income

Total non-interest income in the first quarter of 2023 of $12.5 million was down 12% from $14.2 million in the fourth quarter of 2022 and 26% from $16.9 million in the first quarter of 2022, primarily due to fluctuations in mortgage banking and gains/losses on securities. Mortgage banking income was essentially flat on a linked quarter basis but decreased $4.5 million year-over-year as a result of a $3.4 million decrease in gains primarily from a decrease in hedge valuations and a $0.1 million MSR valuation loss in the first quarter of 2023 compared to a $1.2 million gain in the first quarter of 2022. While mortgage pipeline hedges effectively net out over the life of the loans, individual periods can be volatile as market rates and prices change. Valuations generally decrease during periods when rates decrease and/or prices increase as experienced in the first quarter of 2023. However, the valuations will generally increase over the remaining term of the related loans such that no material net impact is expected over the life of the loans.

Security losses were $1.4 million in the first quarter of 2023, primarily due to decreased valuations on equity securities. This compares to a gain of $1.2 million in the fourth quarter of 2022 from $1.3 million of gains on the sale of $8.7 million of equity securities, partially offset by $0.1 million of decreased valuations on remaining equity securities, and to $0.6 million of losses from decreased valuations on equity securities in the first quarter of 2022. The company also sold $16 million of AFS securities for a $34 thousand gain with average yields less than FHLB borrowing rates during the first quarter of 2023. Service fees in the first quarter of 2023 were $6.4 million, a 3% decrease from $6.6 million in the fourth quarter of 2022 but a 7% increase from $6.0 million in the first quarter of 2022, primarily due to fluctuations in consumer activity for interchange and ATM/NSF charges. Insurance revenues included $0.9 million in contingent commissions in the first quarter of 2023, compared to $1.1 million in the first quarter of 2022. BOLI income of $1.4 million in the first quarter of 2023 increased from $1.0 million in the fourth and first quarters of 2022 due to $0.4 million of claim gains in 2023 compared to none in the 2022 periods.

“A good start to the year on consumer fees, wealth management income and insurance,” Small added. “Mortgage origination activity in the first quarter performed at a lighter pace than previous periods, consistent with the industry.”

Non-interest expenses

Non-interest expenses in the first quarter of 2023 were $42.8 million, a 1% decrease from $43.0 million in the fourth quarter of 2022 and a 4% increase from $41.3 million in the first quarter of 2022. Compensation and benefits were $25.7 million in the first quarter of 2023, compared to $25.0 million in the fourth quarter of 2022 and $25.5 million in the first quarter of 2022. The linked quarter increase was primarily due to higher base compensation, including 2023 annual adjustments. The year-over-year increase was primarily due to costs related to higher staffing levels for our 2022 growth initiatives and higher base compensation, including 2022 mid-year adjustments. Other expenses decreased $1.1 million on a linked quarter basis due to cost saving initiatives, and all other non-interest expenses increased a net $0.2 million on a linked quarter basis. Data processing and FDIC premiums increased $0.5 million and $0.7 million on a year-over-year basis, respectively, due to our 2022 growth initiatives, and all other non-interest expenses increased a net $0.3 million on a year-over-year basis. The efficiency ratio for the first quarter of 2023 of 60.9% worsened from 56.76% in the fourth quarter of 2022 and from 54.60% in the first quarter of 2022, primarily due to lower revenues.

“Approximately $2 million of expenses in the first quarter were either non-recurring or timing related, such that our efficiency ratio would have been approximately 58% excluding those,” said Paul Nungester, CFO of Premier. “In response to the net interest margin challenges being faced, we have identified cost savings totaling approximately $9 million to be realized during the remainder of the year such that total expenses this year are now estimated to be $163 million, compared to our prior estimate of $170 million.”

Credit quality

Non-performing assets totaled $34.8 million, or 0.41% of assets, at March 31, 2023, an increase from $34.4 million at December 31, 2022, but a decrease from $47.6 million at March 31, 2022. Loan delinquencies decreased to $11.1 million, or 0.16% of loans, at March 31, 2023, from $18.3 million at December 31, 2022, but increased from $7.6 million at March 31, 2022. Classified loans totaled $44.9 million, or 0.63% of loans, as of March 31, 2023, an increase from $43.8 million at December 31, 2022, but a decrease from $60.3 million at March 31, 2022.

The 2023 first quarter results include net loan charge-offs of $2.5 million and a total provision expense of $3.7 million, compared with net loan recoveries of $0.1 million and a total provision expense of $0.9 million for the same period in 2022. The current quarter charge-offs are primarily due to an annual appraisal update for a commercial relationship that will not recur during the remainder of 2023. The allowance for credit losses as a percentage of total loans was 1.13% at March 31, 2023, compared with 1.13% at December 31, 2022, and 1.25% at March 31, 2022. The allowance for credit losses as a percentage of total loans excluding PPP and including unaccreted acquisition marks was 1.16% at March 31, 2023, compared with 1.17% at December 31, 2022, and 1.34% at March 31, 2022. The continued economic improvement following the 2020 pandemic-related downturn has resulted in a year-over-year decrease in the allowance percentages.

Total assets at $8.56 billion

Total assets at March 31, 2023, were $8.56 billion, compared to $8.46 billion at December 31, 2022, and $7.59 billion at March 31, 2022. Gross loans receivable were $6.58 billion at March 31, 2023, compared to $6.46 billion at December 31, 2022, and $5.39 billion at March 31, 2022. At March 31, 2023, gross loans receivable increased $115.2 million on a linked quarter basis, or 7% annualized. Commercial loans excluding PPP increased by $69.2 million from December 31, 2022, or 6.5% annualized. Securities at March 31, 2023, were $1.00 billion, compared to $1.05 billion at December 31, 2022, and $1.23 billion at March 31, 2022. All securities are either AFS or trading and are reflected at fair value on the balance sheet. Also, at March 31, 2023, goodwill and other intangible assets totaled $335.8 million compared to $337.1 million at December 31, 2022, and $340.6 million at March 31, 2022, with the decreases attributable to intangibles amortization.

Total non-brokered deposits at March 31, 2023, were $6.62 billion, compared with $6.76 billion at December 31, 2022, and $6.32 billion at March 31, 2022. At March 31, 2023, customer deposits increased $301.9 million on a year-over-year basis, or 5%. Brokered deposits were $154.9 million at March 31, 2023, compared to $143.7 million at December 31, 2022 and none at March 31, 2022.

Total stockholders’ equity was $914.5 million at March 31, 2023, compared to $887.7 million at December 31, 2022, and $943.3 million at March 31, 2022. The quarterly increase in stockholders’ equity was primarily due to net earnings after dividends and an increase in AOCI, which was primarily related to $14.5 million for a positive valuation adjustment on the AFS securities portfolio. The year-over-year decrease was primarily due to a decrease in AOCI, which was primarily related to $65.1 million of negative valuation adjustments on the AFS securities portfolio. At March 31, 2023, 1,199,634 common shares remained available for repurchase under the Company’s existing repurchase program.

Dividend to be paid May 12

The Board of Directors declared a quarterly cash dividend of $0.31 per common share payable May 12, 2023, to shareholders of record at the close of business on May 5, 2023. The dividend represents an annual dividend of 6.6 percent based on the Premier common stock closing price on April 24, 2023. Premier has approximately 35,706,000 common shares outstanding.

Conference call

Premier will host a conference call at 11:00 a.m. ET on Wednesday, April 26, 2023, to discuss the earnings results and business trends. The conference call may be accessed by calling 1-833-470-1428 and using access code 019302. Internet access to the call is also available (in listen-only mode) at the following URL: https://events.q4inc.com/attendee/343832535. The webcast replay of the conference call will be available at www.PremierFinCorp.com for one year.

About Premier Financial Corp.

Premier Financial Corp. (Nasdaq: PFC), headquartered in Defiance, Ohio, is the holding company for Premier Bank and First Insurance Group. Premier Bank, headquartered in Youngstown, Ohio, operates 75 branches and 10 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: 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 March 31, 2023, 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 interest income to be a useful supplemental measure of our operating performance. We define core net interest income as net interest income on a tax-equivalent basis excluding income from PPP loans and purchase accounting marks accretion. We believe that this metric is a useful supplemental measure of operating performance because investors and equity analysts may use this measure to compare the operating performance of the Company between periods or as compared to other financial institutions or other companies on a consistent basis without having to account for income from PPP loans and purchase accounting marks accretion. Our supplemental reporting measures and similarly entitled financial measures are widely used by investors, equity and debt analysts and ratings agencies in the valuation, comparison, rating and investment recommendations of companies. Our management uses these financial measures to facilitate internal and external comparisons to historical operating results and in making operating decisions. Additionally, they are utilized by the Board of Directors to evaluate management. The supplemental reporting measures do not represent net income or cash flow provided from operating activities as determined in accordance with U.S. GAAP and should not be considered as alternative measures of profitability or liquidity. Finally, the supplemental reporting measures, as defined by us, may not be comparable to similarly entitled items reported by other financial institutions or other companies. Please see the exhibits for reconciliations of our supplemental reporting measures.

Consolidated Balance Sheets (Unaudited)
Premier Financial Corp.
	March 31,			December 31,			September 30,			June 30,			March 31,
(in thousands)	2023			2022			2022			2022			2022
Assets
Cash and cash equivalents
Cash and amounts due from depositories	$	68,628		$	88,257		$	67,124		$	62,080		$	62,083
Interest-bearing deposits		88,399			39,903			37,868			72,314			91,683
		157,027			128,160			104,992			134,394			153,766
Available-for-sale, carried at fair value		998,128			1,040,081			1,063,713			1,140,466			1,219,365
Equity securities, carried at fair value		6,387			7,832			15,336			13,293			13,454
Securities investments		1,004,515			1,047,913			1,079,049			1,153,759			1,232,819
Loans (1)		6,575,829			6,460,620			6,207,708			5,890,823			5,388,331
Allowance for credit losses - loans		(74,273	)		(72,816	)		(70,626	)		(67,074	)		(67,195	)
Loans, net		6,501,556			6,387,804			6,137,082			5,823,749			5,321,136
Loans held for sale		119,604			115,251			129,142			145,092			153,498
Mortgage servicing rights		20,654			21,171			20,832			20,693			20,715
Accrued interest receivable		29,388			28,709			26,021			22,533			21,765
Federal Home Loan Bank stock		37,056			29,185			28,262			23,991			15,332
Bank Owned Life Insurance		170,841			170,713			169,728			168,746			167,763
Office properties and equipment		55,982			55,541			53,747			54,060			54,684
Real estate and other assets held for sale		393			619			416			462			253
Goodwill		317,988			317,988			317,948			317,948			317,948
Core deposit and other intangibles		17,804			19,074			19,972			21,311			22,691
Other assets		129,508			133,214			148,949			123,886			108,510
Total Assets	$	8,562,316		$	8,455,342		$	8,236,140		$	8,010,624		$	7,590,880
Liabilities and Stockholders’ Equity
Non-interest-bearing deposits	$	1,649,726		$	1,869,509		$	1,826,511		$	1,786,516		$	1,733,157
Interest-bearing deposits		4,969,436			4,893,502			4,836,113			4,729,828			4,584,078
Brokered deposits		154,869			143,708			69,881			-			-
Total deposits		6,774,031			6,906,719			6,732,505			6,516,344			6,317,235
Advances from FHLB		658,000			428,000			411,000			380,000			150,000
Subordinated debentures		85,123			85,103			85,071			85,039			85,008
Advance payments by borrowers		26,300			34,188			33,511			40,344			20,332
Reserve for credit losses - unfunded commitments		6,577			6,816			7,061			6,755			5,340
Other liabilities		97,835			106,795			102,032			80,995			69,669
Total Liabilities		7,647,866			7,567,621			7,371,180			7,109,477			6,647,584
Stockholders’ Equity
Preferred stock		-			-			-			-			-
Common stock, net		306			306			306			306			306
Additional paid-in-capital		689,807			691,453			691,578			690,905			691,350
Accumulated other comprehensive income (loss)		(153,709	)		(173,460	)		(181,231	)		(126,754	)		(75,497	)
Retained earnings		510,021			502,909			488,305			470,779			459,087
Treasury stock, at cost		(131,975	)		(133,487	)		(133,998	)		(134,089	)		(131,950	)
Total Stockholders’ Equity		914,450			887,721			864,960			901,147			943,296
Total Liabilities and Stockholders’ Equity	$	8,562,316		$	8,455,342		$	8,236,140		$	8,010,624		$	7,590,880
(1) Includes PPP loans of:	$	791		$	1,143		$	1,181		$	4,561		$	18,660

Consolidated Statements of Income (Unaudited)
Premier Financial Corp.
	Three Months Ended															Three Months Ended
(in thousands, except per share amounts)	3/31/23			12/31/22			9/30/22		6/30/22			3/31/22				3/31/23			3/31/22
Interest Income:
Loans	$	76,057		$	72,194		$	65,559	$	56,567		$	55,241			$	76,057		$	55,241
Investment securities		7,261			7,605			6,814		6,197			5,479				7,261			5,479
Interest-bearing deposits		444			444			221		120			46				444			46
FHLB stock dividends		394			482			510		174			59				394			59
Total interest income		84,156			80,725			73,104		63,058			60,825				84,156			60,825
Interest Expense:
Deposits		21,458			13,161			6,855		2,671			2,222				21,458			2,222
FHLB advances		5,336			3,941			2,069		527			13				5,336			13
Subordinated debentures		1,075			1,000			868		763			696				1,075			696
Notes Payable		-			4			-		1			-				-			-
Total interest expense		27,869			18,106			9,792		3,962			2,931				27,869			2,931
Net interest income		56,287			62,619			63,312		59,096			57,894				56,287			57,894
Provision (benefit) for credit losses - loans		3,944			3,020			3,706		5,151			626				3,944			626
Provision (benefit) for credit losses - unfunded commitments		(238	)		(246	)		306		1,415			309				(238	)		309
Total provision (benefit) for credit losses		3,706			2,774			4,012		6,566			935				3,706			935
Net interest income after provision		52,581			59,845			59,300		52,530			56,959				52,581			56,959
Non-interest Income:
Service fees and other charges		6,428			6,632			6,545		6,676			6,000				6,428			6,000
Mortgage banking income		(274	)		(299	)		3,970		1,948			4,252				(274	)		4,252
Gain (loss) on sale of available for sale securities		34			1			-		-			-				34			-
Gain (loss) on equity securities		(1,445	)		1,209			43		(1,161	)		(643	)			(1,445	)		(643	)
Insurance commissions		4,725			3,576			3,488		4,334			4,639				4,725			4,639
Wealth management income		1,485			1,582			1,355		1,414			1,477				1,485			1,477
Income from Bank Owned Life Insurance		1,417			984			983		983			996				1,417			996
Other non-interest income		92			543			320		171			142				92			142
Total Non-interest Income		12,462			14,228			16,704		14,365			16,863				12,462			16,863
Non-interest Expense:
Compensation and benefits		25,658			24,999			24,522		22,334			25,541				25,658			25,541
Occupancy		3,574			3,383			3,463		3,494			3,700				3,574			3,700
FDIC insurance premium		1,288			1,276			976		802			593				1,288			593
Financial institutions tax		852			795			1,050		1,074			1,191				852			1,191
Data processing		3,863			3,882			3,121		3,442			3,335				3,863			3,335
Amortization of intangibles		1,270			1,293			1,338		1,380			1,438				1,270			1,438
Other non-interest expense		6,286			7,400			6,629		6,563			5,497				6,286			5,497
Total Non-interest Expense		42,791			43,028			41,099		39,089			41,295				42,791			41,295
Income before income taxes		22,252			31,045			34,905		27,806			32,527				22,252			32,527
Income tax expense		4,103			5,770			6,710		5,446			6,170				4,103			6,170
Net Income	$	18,149		$	25,275		$	28,195	$	22,360		$	26,357			$	18,149		$	26,357
Earnings per common share:
Basic	$	0.51		$	0.71		$	0.79	$	0.63		$	0.73			$	0.51		$	0.73
Diluted	$	0.51		$	0.71		$	0.79	$	0.63		$	0.73			$	0.51		$	0.73
Average Shares Outstanding:
Basic		35,606			35,589			35,582		35,560			35,978				35,606			35,978
Diluted		35,719			35,790			35,704		35,682			36,090				35,719			36,090

Premier Financial Corp.
Selected Quarterly Information
	As of and for the Three Months Ended																Three Months Ended
(dollars in thousands, except per share data)	3/31/23			12/31/22			9/30/22			6/30/22			3/31/22				3/31/23			3/31/22
Summary of Operations
Tax-equivalent interest income (1)	$	84,260		$	80,889		$	73,301		$	63,283		$	61,054			$	84,260		$	61,054
Interest expense		27,869			18,106			9,792			3,962			2,931				27,869			2,931
Tax-equivalent net interest income (1)		56,391			62,783			63,509			59,321			58,123				56,391			58,123
Provision expense (benefit) for credit losses		3,706			2,774			4,012			6,566			935				3,706			935
Investment securities gains (losses)		(1,411	)		1,210			43			(1,161	)		(643	)			(1,411	)		(643	)
Non-interest income (ex securities gains/losses)		13,873			13,018			16,661			15,526			17,506				13,873			17,506
Non-interest expense		42,791			43,028			41,099			39,089			41,295				42,791			41,295
Income tax expense		4,103			5,770			6,710			5,446			6,170				4,103			6,170
Net income		18,149			25,275			28,195			22,360			26,357				18,149			26,357
Tax equivalent adjustment (1)		104			164			197			225			229				104			229
At Period End
Total assets	$	8,562,316		$	8,455,342		$	8,236,140		$	8,010,624		$	7,590,880
Goodwill and intangibles		335,792			337,062			337,920			339,259			340,639
Tangible assets (2)		8,226,524			8,118,280			7,898,220			7,671,365			7,250,241
Earning assets		7,751,130			7,620,056			7,411,403			7,218,905			6,881,663
Loans		6,575,829			6,460,620			6,207,708			5,890,823			5,388,331
Allowance for loan losses		74,273			72,816			70,626			67,074			67,195
Deposits		6,774,031			6,906,719			6,732,505			6,516,344			6,317,235
Stockholders’ equity		914,450			887,721			864,960			901,147			943,296
Stockholders’ equity / assets		10.68	%		10.50	%		10.50	%		11.25	%		12.43	%
Tangible equity (2)		578,658			550,659			527,040			561,888			602,657
Tangible equity / tangible assets		7.03	%		6.78	%		6.67	%		7.32	%		8.31	%
Average Balances
Total assets	$	8,433,100		$	8,304,462		$	8,161,389		$	7,742,550		$	7,541,414			$	8,433,100		$	7,541,414
Earning assets		7,783,850			7,653,648			7,477,795			7,051,661			6,754,862				7,783,850			6,754,862
Loans		6,535,080			6,359,564			6,120,324			5,667,853			5,382,825				6,535,080			5,382,825
Deposits and interest-bearing liabilities		7,385,946			7,278,531			7,116,910			6,706,250			6,415,483				7,385,946			6,415,483
Deposits		6,833,521			6,773,382			6,654,328			6,385,857			6,314,217				6,833,521			6,314,217
Stockholders’ equity		901,587			875,287			912,224			921,847			1,033,816				901,587			1,033,816
Goodwill and intangibles		336,418			337,207			338,583			339,932			341,353				336,418			341,353
Tangible equity (2)		565,169			538,080			573,641			581,915			692,463				565,169			692,463
Per Common Share Data
Net Income (Loss):
Basic	$	0.51		$	0.71		$	0.79		$	0.63		$	0.73			$	0.51		$	0.73
Diluted		0.51			0.71			0.79			0.63			0.73				0.51			0.73
Dividends Paid		0.31			0.30			0.30			0.30			0.30				0.31			0.30
Market Value:
High	$	27.80		$	30.51		$	29.36		$	30.13		$	32.52			$	27.80		$	32.52
Low		20.39			26.11			24.67			25.31			28.58				20.39			28.58
Close		20.73			26.97			25.70			25.35			30.33				20.73			30.33
Common Book Value		25.61			24.94			24.32			25.35			26.48
Tangible Common Book Value (2)		16.21			15.47			14.82			15.80			16.92
Shares outstanding, end of period (000s)		35,701			35,591			35,563			35,555			35,621
Performance Ratios (annualized)
Tax-equivalent net interest margin (1)		2.90	%		3.28	%		3.40	%		3.36	%		3.44	%			2.90	%		3.39	%
Return on average assets		0.87	%		1.21	%		1.37	%		1.16	%		1.42	%			0.22	%		1.68	%
Return on average equity		8.16	%		11.46	%		12.26	%		9.73	%		10.34	%			2.01	%		12.49	%
Return on average tangible equity		13.02	%		18.64	%		19.50	%		15.41	%		15.44	%			3.21	%		18.99	%
Efficiency ratio (3)		60.90	%		56.76	%		51.26	%		52.23	%		54.60	%			60.90	%		54.60	%
Effective tax rate		18.44	%		18.59	%		19.22	%		19.59	%		18.97	%			18.44	%		19.42	%
Common dividend payout ratio		60.78	%		42.25	%		37.97	%		47.62	%		41.10	%			60.78	%		30.97	%
(1) Interest income on tax-exempt securities and loans has been adjusted to a tax-equivalent basis using the statutory federal income tax rate of 21%.
(2) Tangible assets = total assets less the sum of goodwill and core deposit and other intangibles. Tangible equity = total stockholders' equity less the sum of goodwill, core deposit and other intangibles, and preferred stock. Tangible common book value = tangible equity divided by shares outstanding at the end of the period.
(3) Efficiency ratio = Non-interest expense divided by sum of tax-equivalent net interest income plus non-interest income, excluding securities gains or losses, net.

Premier Financial Corp.
Yield Analysis
(dollars in thousands)	Three Months Ended
	3/31/23			12/31/22			9/30/22			6/30/22			3/31/22
Average Balances
Interest-earning assets:
Loans receivable (1)	$	6,535,080		$	6,359,564		$	6,120,324		$	5,667,853		$	5,382,825
Securities		1,183,361			1,235,814			1,261,527			1,288,073			1,250,321
Interest Bearing Deposits		35,056			29,884			68,530			76,401			109,757
FHLB stock		30,353			28,386			27,414			19,334			11,959
Total interest-earning assets		7,783,850			7,653,648			7,477,795			7,051,661			6,754,862
Non-interest-earning assets		649,250			650,814			683,594			690,889			786,552
Total assets	$	8,433,100		$	8,304,462		$	8,161,389		$	7,742,550		$	7,541,414
Deposits and Interest-bearing Liabilities:
Interest bearing deposits	$	5,078,510		$	4,901,412		$	4,846,419		$	4,614,223		$	4,600,801
FHLB advances and other		467,311			419,761			377,533			234,945			16,278
Subordinated debentures		85,114			85,084			85,049			85,020			84,988
Notes payable		-			304			-			428			-
Total interest-bearing liabilities		5,630,935			5,406,561			5,309,001			4,934,616			4,702,067
Non-interest bearing deposits		1,755,011			1,871,970			1,807,909			1,771,634			1,713,416
Total including non-interest-bearing deposits		7,385,946			7,278,531			7,116,910			6,706,250			6,415,483
Other non-interest-bearing liabilities		145,567			150,644			132,255			114,453			92,115
Total liabilities		7,531,513			7,429,175			7,249,165			6,820,703			6,507,598
Stockholders' equity		901,587			875,287			912,224			921,847			1,033,816
Total liabilities and stockholders' equity	$	8,433,100		$	8,304,462		$	8,161,389		$	7,742,550		$	7,541,414
IEAs/IBLs		138	%		142	%		141	%		143	%		144	%
Interest Income/Expense
Interest-earning assets:
Loans receivable (2)	$	76,063		$	72,201		$	65,564		$	56,573		$	55,248
Securities (2)		7,359			7,762			7,006			6,416			5,701
Interest Bearing Deposits		444			444			221			120			46
FHLB stock		394			482			510			174			59
Total interest-earning assets		84,260			80,889			73,301			63,283			61,054
Deposits and Interest-bearing Liabilities:
Interest bearing deposits	$	21,458		$	13,161		$	6,855		$	2,671		$	2,222
FHLB advances and other		5,336			3,941			2,069			527			13
Subordinated debentures		1,075			1,001			868			763			696
Notes payable		-			3			-			1			-
Total interest-bearing liabilities		27,869			18,106			9,792			3,962			2,931
Non-interest bearing deposits		-			-			-			-			-
Total including non-interest-bearing deposits		27,869			18,106			9,792			3,962			2,931
Net interest income	$	56,391		$	62,783		$	63,509		$	59,321		$	58,123
Less: PPP income		(6	)		(6	)		(26	)		(160	)		(3,641	)
Less: Acquisition marks accretion		(387	)		(554	)		(608	)		(706	)		(737	)
Core net interest income	$	55,998		$	62,223		$	62,875		$	58,455		$	53,745
Annualized Average Rates
Interest-earning assets:
Loans receivable		4.66	%		4.54	%		4.29	%		3.99	%		4.11	%
Securities (3)		2.49	%		2.51	%		2.22	%		1.99	%		1.82	%
Interest Bearing Deposits		5.07	%		5.94	%		1.29	%		0.63	%		0.17	%
FHLB stock		5.19	%		6.79	%		7.44	%		3.60	%		1.97	%
Total interest-earning assets		4.33	%		4.23	%		3.92	%		3.59	%		3.62	%
Deposits and Interest-bearing Liabilities:
Interest bearing deposits		1.69	%		1.07	%		0.57	%		0.23	%		0.19	%
FHLB advances and other		4.57	%		3.76	%		2.19	%		0.90	%		0.32	%
Subordinated debentures		5.05	%		4.71	%		4.08	%		3.59	%		3.28	%
Notes payable		-			3.95	%		-			0.93	%		-
Total interest-bearing liabilities		1.98	%		1.34	%		0.74	%		0.32	%		0.25	%
Non-interest bearing deposits		-			-			-			-			-
Total including non-interest-bearing deposits		1.51	%		1.00	%		0.55	%		0.24	%		0.18	%
Net interest spread		2.35	%		2.89	%		3.18	%		3.27	%		3.37	%
Net interest margin (4)		2.90	%		3.28	%		3.40	%		3.36	%		3.44	%
Core net interest margin (4)		2.88	%		3.25	%		3.36	%		3.32	%		3.20	%
(1) Includes average PPP loans of:	$	965		$	1,160		$	1,889		$	12,966		$	32,853
(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
	3/31/23			12/31/22			9/30/22			6/30/22			3/31/22
Ending Balances
Non-interest-bearing demand deposits	$	1,649,726		$	1,869,509		$	1,826,511		$	1,786,516		$	1,733,157
Savings deposits		775,186			797,376			817,853			830,048			827,078
Interest-bearing demand deposits		646,329			653,960			665,974			662,337			674,306
Money market account deposits		1,342,451			1,493,729			1,463,600			1,511,990			1,477,133
Time deposits		856,720			768,678			630,077			587,918			604,368
Public funds, ICS and CDARS deposits		1,348,750			1,179,759			1,258,610			1,137,536			1,001,193
Brokered deposits		154,869			143,708			69,881			-			-
Total deposits	$	6,774,031		$	6,906,719		$	6,732,505		$	6,516,344		$	6,317,235
Average Balances
Non-interest-bearing demand deposits	$	1,755,011		$	1,871,970		$	1,807,909		$	1,771,634		$	1,713,416
Savings deposits		782,215			806,653			825,673			833,323			816,720
Interest-bearing demand deposits		637,423			651,685			681,247			681,798			699,216
Money market account deposits		1,430,905			1,418,549			1,493,019			1,498,218			1,680,520
Time deposits		825,652			685,453			610,708			597,613			706,881
Public funds, ICS and CDARS deposits		1,232,230			1,235,772			1,204,968			1,003,271			697,464
Brokered deposits		170,085			103,300			30,804			-			-
Total deposits	$	6,833,521		$	6,773,382		$	6,654,328		$	6,385,857		$	6,314,217
Average Rates
Non-interest-bearing demand deposits		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Savings deposits		0.02	%		0.02	%		0.02	%		0.02	%		0.02	%
Interest-bearing demand deposits		0.07	%		0.07	%		0.07	%		0.05	%		0.05	%
Money market account deposits		1.54	%		0.81	%		0.40	%		0.18	%		0.16	%
Time deposits		1.83	%		1.05	%		0.58	%		0.45	%		0.49	%
Public funds, ICS and CDARS deposits		3.32	%		2.41	%		1.38	%		0.48	%		0.31	%
Brokered deposits		4.19	%		3.32	%		2.37	%		-			-
Total deposits		1.26	%		0.78	%		0.41	%		0.17	%		0.14	%
Other Deposits Data
Loans/Deposits Ratio		97.1	%		93.5	%		92.2	%		90.4	%		85.3	%
Uninsured deposits %		32.3	%		35.3	%		35.5	%		34.2	%		30.3	%
Adjusted uninsured deposits % (1)		19.6	%		22.2	%		22.2	%		22.0	%		20.5	%
Top 20 depositors %		12.1	%		5.4	%		11.3	%		10.0	%		6.8	%
Public funds %		16.5	%		14.8	%		15.9	%		14.1	%		11.4	%
Average account size (excluding brokered)	$	27.0		$	27.8		$	27.5		$	26.9		$	25.9
Securities Data
Held-to-maturity (HTM) at fair value	$	-		$	-		$	-		$	-		$	-
Available-for-sale (AFS) at fair value (2)		998,128			1,040,081			1,063,713			1,140,466			1,219,365
Equity investment at fair value (3)		6,387			7,832			15,336			13,293			13,454
Total securities at fair value	$	1,004,515		$	1,047,913		$	1,079,049		$	1,153,759		$	1,232,819
Cash+Securities/Assets		13.6	%		13.9	%		14.4	%		16.1	%		18.3	%
Projected AFS cash flow in next 12 months	$	73,184		$	73,319		$	76,119		$	74,558		$	85,910
AFS average life (years)		6.4			6.5			6.6			6.8			6.6
Liquidity Sources
Cash and cash equivalents	$	157,027		$	128,160		$	104,992		$	134,394		$	153,766
Unpledged securities at fair value		211,468			288,134			342,979			572,892			677,918
FHLB borrowing capacity		1,358,650			1,528,978			1,217,516			1,044,477			1,274,743
Brokered deposits (Company policy limit of 10%)		524,889			549,370			605,552			654,380			634,318
Bank and parent lines of credit		70,000			70,000			70,000			45,000			45,000
Federal Reserve - Discount Window and BTFP (4)		129,918			44,471			-			-			-
Total	$	2,451,952		$	2,609,113		$	2,341,039		$	2,451,143		$	2,785,745
Total liquidity to adjusted uninsured deposits ratio		183.2	%		168.9	%		155.4	%		169.0	%		213.1	%
(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)
	3/31/23			12/31/22			9/30/22			6/30/22			3/31/22
Loan Portfolio Composition
Residential real estate	$	1,624,331		$	1,535,574		$	1,478,360		$	1,382,202		$	1,222,057
Residential real estate construction		141,209			176,737			119,204			85,256			97,746
Total residential loans		1,765,540			1,712,311			1,597,564			1,467,458			1,319,803
Commercial real estate		2,813,441			2,762,311			2,674,078			2,655,730			2,495,469
Commercial construction		440,510			428,743			398,044			319,590			260,421
Commercial excluding PPP		1,060,351			1,054,037			1,041,423			987,242			891,893
Core commercial loans (1)		4,314,302			4,245,091			4,113,545			3,962,562			3,647,783
Consumer direct/indirect		212,299			213,405			212,790			180,539			132,294
Home equity and improvement lines		271,676			277,613			272,367			266,144			261,176
Total consumer loans		483,975			491,018			485,157			446,683			393,470
Deferred loan origination fees		11,221			11,057			10,261			9,559			8,615
Core loans (1)		6,575,038			6,459,477			6,206,527			5,886,262			5,369,671
PPP loans		791			1,143			1,181			4,561			18,660
Total loans	$	6,575,829		$	6,460,620		$	6,207,708		$	5,890,823		$	5,388,331
Loans held for sale	$	119,631		$	115,251		$	129,142		$	145,092		$	153,498
Core residential loans (1)		1,885,171			1,827,562			1,726,706			1,612,550			1,473,301
Total loans including loans held for sale but excluding PPP		6,694,669			6,574,728			6,335,669			6,031,354			5,523,169
Undisbursed construction loan funds - residential	$	157,934		$	209,306		$	231,598		$	239,748		$	210,702
Undisbursed construction loan funds - commercial		446,294			463,469			493,199			449,101			314,843
Undisbursed construction loan funds - total		604,228			672,775			724,797			688,849			525,545
Total construction loans including undisbursed funds	$	1,185,947		$	1,278,255		$	1,242,045		$	1,093,695		$	883,712
Gross loans (2)	$	7,168,836		$	7,122,338		$	6,922,244		$	6,570,113		$	5,905,261
Fixed rate loans %		49.5	%		48.8	%		48.7	%		47.4	%		45.5	%
Floating rate loans %		13.4	%		14.3	%		16.0	%		18.3	%		21.8	%
Adjustable rate loans repricing within 1 year %		2.0	%		2.6	%		0.8	%		2.5	%		3.3	%
Adjustable rate loans repricing over 1 year %		35.1	%		34.3	%		34.5	%		31.8	%		29.4	%
Commercial Real Estate Loans Composition
Non owner occupied excluding office	$	947,442		$	934,760		$	905,512		$	899,129		$	843,775
Non owner occupied office		220,668			222,300			203,565			210,164			210,258
Owner occupied excluding office		609,203			578,514			570,662			556,482			558,802
Owner occupied office		109,014			108,087			105,224			104,968			97,880
Multifamily		661,996			660,823			637,701			634,782			569,216
Agriculture land		122,384			125,384			122,416			120,633			113,883
Other commercial real estate		142,734			132,443			128,998			129,572			101,655
Total commercial real estate loans	$	2,813,441		$	2,762,311		$	2,674,078		$	2,655,730		$	2,495,469
Capital Balances
Total equity	$	914,450		$	887,721		$	864,960		$	901,147		$	943,296
Less: Regulatory goodwill and intangibles		330,711			331,981			332,839			334,177			335,558
Less: Accumulated other comprehensive income/(loss) ("AOCI")		(153,709	)		(173,460	)		(181,231	)		(126,754	)		(75,497	)
Common equity tier 1 capital ("CET1")		737,448			729,200			713,352			693,724			683,235
Add: Tier 1 subordinated debt		35,000			35,000			35,000			35,000			35,000
Tier 1 capital		772,448			764,200			748,352			728,724			718,235
Add: Regulatory allowances		80,003			78,780			76,530			72,648			70,949
Add: Tier 2 subordinated debt		50,000			50,000			50,000			50,000			50,000
Total risk-based capital	$	902,451		$	892,980		$	874,882		$	851,372		$	839,184
Total risk-weighted assets	$	7,407,117		$	7,355,979		$	7,385,877		$	7,095,366		$	6,629,166
Capital Ratios
CET1 Ratio		9.96	%		9.91	%		9.66	%		9.78	%		10.31	%
CET1 Ratio including AOCI		7.88	%		7.55	%		7.20	%		7.99	%		9.17	%
Tier 1 Capital Ratio		10.43	%		10.39	%		10.13	%		10.27	%		10.83	%
Tier 1 Capital Ratio including AOCI		8.35	%		8.03	%		7.68	%		8.48	%		9.70	%
Total Capital Ratio		12.18	%		12.14	%		11.85	%		12.00	%		12.66	%
Total Capital Ratio including AOCI		10.11	%		9.78	%		9.39	%		10.21	%		11.52	%
(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
March 31, 2023
One to four family residential real estate	$	1,624,331	$	1,611,658	$	4,514	0.28	%	$	8,159	0.50	%
Construction		1,185,947		1,185,803		144	0.01	%		-	0.00	%
Commercial real estate		2,813,441		2,799,007		88	0.00	%		14,346	0.51	%
Commercial		1,061,142		1,053,681		471	0.04	%		6,990	0.66	%
Home equity and improvement		271,676		266,931		2,404	0.88	%		2,341	0.86	%
Consumer finance		212,299		206,247		3,511	1.65	%		2,541	1.20	%
Gross loans	$	7,168,836	$	7,123,327	$	11,132	0.16	%	$	34,377	0.48	%
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	%
March 31, 2022
One to four family residential real estate	$	1,222,057	$	1,206,560	$	3,843	0.31	%	$	11,654	0.95	%
Construction		883,712		883,712		-	0.00	%		-	0.00	%
Commercial real estate		2,495,469		2,480,656		181	0.01	%		14,632	0.59	%
Commercial		910,553		894,923		18	0.00	%		15,612	1.71	%
Home equity and improvement		132,294		127,856		2,214	1.67	%		2,224	1.68	%
Consumer finance		261,176		256,667		1,333	0.51	%		3,176	1.22	%
Gross loans	$	5,905,261	$	5,850,374	$	7,589	0.13	%	$	47,298	0.80	%
Loan Risk Ratings Information
(dollars in thousands)	Total Balance		Pass Rated		Special Mention		% of Total		Classified		% of Total
March 31, 2023
One to four family residential real estate	$	1,612,999	$	1,604,694	$	493	0.03	%	$	7,812	0.48	%
Construction		1,185,947		1,185,947		-	0.00	%		-	0.00	%
Commercial real estate		2,811,999		2,748,598		41,677	1.48	%		21,724	0.77	%
Commercial		1,055,829		1,015,416		33,090	3.13	%		7,323	0.69	%
Home equity and improvement		269,455		267,588		-	0.00	%		1,867	0.69	%
Consumer finance		212,043		209,566		-	0.00	%		2,477	1.17	%
PCD loans		20,564		13,177		3,683	17.91	%		3,704	18.01	%
Gross loans	$	7,168,836	$	7,044,986	$	78,943	1.10	%	$	44,907	0.63	%
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	%
March 31, 2022
One to four family residential real estate	$	1,209,537	$	1,198,311	$	1,295	0.11	%	$	9,931	0.82	%
Construction		883,712		883,712		-	0.00	%		-	0.00	%
Commercial real estate		2,492,324		2,373,111		93,550	3.75	%		25,663	1.03	%
Commercial		901,957		869,615		20,558	2.28	%		11,784	1.31	%
Consumer finance		131,846		129,747		-	0.00	%		2,099	1.59	%
Home equity and improvement		258,041		255,883		-	0.00	%		2,158	0.84	%
PCD loans		27,844		19,110		98	0.35	%		8,636	31.02	%
Total loans	$	5,905,261	$	5,729,489	$	115,501	1.96	%	$	60,271	1.02	%

Premier Financial Corp.
Mortgage and Credit Information
(dollars in thousands)
	As of and for the Three Months Ended
Mortgage Banking Summary	3/31/23			12/31/22			9/30/22			6/30/22			3/31/22
Revenue from sales and servicing of mortgage loans:
Mortgage banking gains, net	$	(837	)	$	(1,285	)	$	3,363		$	1,166		$	2,543
Mortgage loan servicing revenue (expense):
Mortgage loan servicing revenue		1,888			1,862			1,861			1,862			1,879
Amortization of mortgage servicing rights		(1,219	)		(1,271	)		(1,350	)		(1,375	)		(1,403	)
Mortgage servicing rights valuation adjustments		(106	)		396			96			295			1,233
		563			987			607			782			1,709
Total revenue from sale/servicing of mortgage loans	$	(274	)	$	(298	)	$	3,970		$	1,948		$	4,252
Mortgage servicing rights:
Balance at beginning of period	$	21,858		$	21,915		$	21,872		$	22,189		$	22,244
Loans sold, servicing retained		808			1,214			1,393			1,058			1,348
Mortgage servicing rights acquired		-			-			-			-			-
Amortization		(1,219	)		(1,271	)		(1,350	)		(1,375	)		(1,403	)
Balance at end of period		21,447			21,858			21,915			21,872			22,189
Valuation allowance:
Balance at beginning of period		(687	)		(1,083	)		(1,179	)		(1,474	)		(2,707	)
Impairment recovery (charges)		(106	)		396			96			295			1,233
Balance at end of period		(793	)		(687	)		(1,083	)		(1,179	)		(1,474	)
Net carrying value at end of period	$	20,654		$	21,171		$	20,832		$	20,693		$	20,715
Allowance for credit losses - loans
Beginning allowance	$	72,816		$	70,626		$	67,074		$	67,195		$	66,468
Provision (benefit) for credit losses - loans		3,944			3,020			3,706			5,151			626
Net recoveries (charge-offs)		(2,487	)		(830	)		(154	)		(5,272	)		101
Ending allowance	$	74,273		$	72,816		$	70,626		$	67,074		$	67,195
Total loans	$	6,575,829		$	6,460,620		$	6,207,708		$	5,890,823		$	5,388,331
Less: PPP loans		(791	)		(1,143	)		(1,181	)		(4,561	)		(18,660	)
Total loans ex PPP	$	6,575,038		$	6,459,477		$	6,206,527		$	5,886,262		$	5,369,671
Allowance for credit losses (ACL)	$	74,273		$	72,816		$	70,626		$	67,074		$	67,195
Add: Unaccreted purchase accounting marks		2,301			2,706			3,291			3,924			4,652
Adjusted ACL	$	76,574		$	75,522		$	73,917		$	70,998		$	71,847
ACL/Loans		1.13	%		1.13	%		1.14	%		1.14	%		1.25	%
Adjusted ACL/Loans ex PPP		1.16	%		1.17	%		1.19	%		1.21	%		1.34	%
Credit Quality
Total non-performing loans (1)	$	34,377		$	33,822		$	33,137		$	34,735		$	47,298
Real estate owned (REO)		393			619			416			462			253
Total non-performing assets (2)	$	34,770		$	34,441		$	33,553		$	35,197		$	47,551
Net charge-offs (recoveries)		2,487			830			154			5,272			(101	)
Allowance for credit losses - loans / non-performing assets		213.61	%		211.42	%		210.49	%		190.57	%		141.31	%
Allowance for credit losses - loans / non-performing loans		216.05	%		215.29	%		213.13	%		193.10	%		142.07	%
Non-performing assets / loans plus REO		0.53	%		0.53	%		0.54	%		0.60	%		0.88	%
Non-performing assets / total assets		0.41	%		0.41	%		0.41	%		0.44	%		0.63	%
Net charge-offs / average loans (annualized)		0.15	%		0.05	%		0.01	%		0.37	%		-0.01	%
Net charge-offs / average loans LTM		0.14	%		0.10	%		0.26	%		0.27	%		0.17	%
(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.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230425005970/en/

Paul Nungester

EVP and CFO 419.785.8700

PNungester@yourpremierbank.com

Source: Premier Financial Corp.

FAQ

What is Premier Financial Corp.'s net income for Q1 2023?

Premier Financial Corp. reported a net income of $18.1 million for the first quarter of 2023.

What was the dividend declared by Premier Financial Corp. for Q1 2023?

The Board declared a dividend of $0.31 per share for the first quarter of 2023.

How much did loan growth increase in the first quarter of 2023 for Premier Financial Corp.?

Loan growth for Premier Financial Corp. was $115.2 million, representing a 7.1% annualized increase.

What were the total deposits for Premier Financial Corp. in Q1 2023?

Total deposits for Premier Financial Corp. declined by 2% or $132.7 million in the first quarter of 2023.

How did the CET1 ratio change for Premier Financial Corp. in Q1 2023?

The CET1 ratio increased by 5 basis points to 9.96% in the first quarter of 2023.