Premier Financial Corp. Announces Full Year 2022 Results and Dividend Increase

Rhea-AI Summary

Premier Financial Corp. (Nasdaq: PFC) reported strong fourth quarter and full year 2022 results, with net income of $25.3 million for Q4 and $102.2 million for the full year. Noteworthy highlights include:

• Loan growth of $1.1 billion (up 20.5%) for 2022, with commercial loans up 19.6%.
• Customer deposits increased by $481 million (up 7.7%).
• Declared a quarterly dividend of $0.31 per share, marking a 3.3% increase from last year.
• Net interest income increased to $243.7 million, up 6.7% from 2021.
• Improved asset quality with non-performing loans down 30% year-over-year.

Positive

• Loan growth of $1.1 billion, or 20.5%, in 2022, with commercial loans up 19.6%.
• Customer deposits rose by $481 million, reflecting a 7.7% increase.
• Declared a quarterly dividend of $0.31 per share, a 3.3% rise from the previous year.
• Net interest income increased by 6.7%, reaching $243.7 million.

Negative

• Net income decreased from $126.1 million in 2021 to $102.2 million in 2022.
• Efficiency ratio worsened to 53.68%, up from 51.83% in 2021 due to increased expenses.
• Total non-interest income decreased by 21.6% from 2021.

Fourth Quarter 2022 Highlights

• Loan growth of $239.0 million (up 15.1% annualized) including $131.5 million for commercial loans excluding PPP (up 12.8% annualized)
• Customer deposits growth of $100.4 million (up 6.0% annualized) including $43.0 million of non-interest-bearing (up 9.4% annualized)
• Net interest income (tax equivalent) of $62.8 million or $62.2 million excluding PPP and acquisition marks accretion, up 9.3% and 17.0%, respectively, from 2021 fourth quarter
• Completed an insurance agency acquisition
• Declared dividend of $0.31 per share, up 3.3% from prior year comparable period

Full Year 2022 Highlights

• Loan growth of $1.1 billion (up 20.5%) including $694.7 million for commercial loans excluding PPP (up 19.6%)
• Customer deposits growth of $481.0 million (up 7.7%) including $144.7 million of non-interest-bearing (up 8.4%)
• Net interest income (tax equivalent) of $243.7 million or $237.3 million excluding PPP and acquisition marks accretion, up 6.7% and 14.1%, respectively, from 2021
• Asset quality improved with non-performing loans down 30% and classified loans down 37% from 2021

DEFIANCE, Ohio--(BUSINESS WIRE)-- Premier Financial Corp. (Nasdaq: PFC) (“Premier” or the “Company”) announced today 2022 fourth quarter and full year results. Net income for the fourth quarter of 2022 was $25.3 million, or $0.71 per diluted common share, compared to $25.3 million, or $0.69 per diluted common share, for the fourth quarter of 2021. Net income for 2022 was $102.2 million, or $2.85 per diluted common share, compared to $126.1 million, or $3.39 per diluted common share, for 2021.

“We continued to have stronger than anticipated loan and deposit growth as we closed the fourth quarter,” said Gary Small, President and CEO of Premier. “Full year loan growth exceeded 20% with core customer deposits up 7.7%. For the full year, tax equivalent net interest income grew $29 million, or 14% on a core basis excluding PPP and purchase accounting marks. The growth reflects the strength of our client base and the markets in which we operate. We did experience a step up in deposit betas during the quarter although this is in line with our overall historical range for the deposit book of business. As noted last quarter, we are utilizing non-core funding enabling us to thoughtfully manage core deposit costs across the organization. Diligent funding cost management will be a key for the organization and the industry in 2023.”

Quarterly results

Strong loan and deposit growth

Gross loans including those held for sale increased $239.0 million (up 15.1% annualized) on a linked quarter basis. Loan growth occurred in each category, including $131.5 million from commercial loans excluding PPP (up 12.8% annualized), $100.9 million from residential loans including held for sale (up 23.4% annualized) and $5.9 million from consumer/home equity loans (up 4.8% annualized). PPP loans decreased $38 thousand and were only $1.1 million as of December 31, 2022.

Customer deposits increased $100.4 million (up 6.0% annualized) on a linked quarter basis. Deposit growth occurred in each customer category, including $43.0 million from non-interest bearing deposits (up 9.4% annualized) and $57.4 million from interest-bearing deposits (up 4.7% annualized). Brokered deposits also added $73.8 million.

Net interest income and margin

Net interest income of $62.8 million on a tax equivalent (“TE”) basis in the fourth quarter of 2022 was down 1.1% from $63.5 million in the third quarter of 2022 but up 9.3% from $57.5 million in the fourth quarter of 2021. TE net interest margin of 3.28% in the fourth quarter of 2022 decreased 12 basis points from 3.40% in the third quarter of 2022 and 13 basis points from 3.41% in the fourth quarter of 2021. Results for all periods include the impact of PPP as well as acquisition marks and related accretion. Fourth quarter 2022 includes $329 thousand of accretion in interest income, $225 thousand of accretion in interest expense and $6 thousand of interest income on average balances of $1.2 million for PPP. Excluding the impact of acquisition marks accretion and PPP loans, core net interest income was $62.2 million, down 1.0% from $62.9 million in the third quarter of 2022 but up 17.0% from $53.2 million in the fourth quarter of 2021. Additionally, core net interest margin was 3.25% for the fourth quarter of 2022, down 11 basis points from 3.36% for the third quarter of 2022 but up 4 basis points from 3.21% for the fourth quarter of 2021. These results are positively impacted by the combination of loan growth excluding PPP as discussed above and higher loan yields excluding PPP and acquisition marks accretion, which were 4.51% for the fourth quarter of 2022 compared to 4.24% in the third quarter of 2022 and 3.86% in the fourth quarter of 2021. The fourth quarter increase of 27 basis points represents a beta of 18% compared to the change in the quarterly average effective Federal Funds rate that increased 147 basis points to 3.65% for the fourth quarter of 2022 as reported by the Federal Reserve Economic Data. The cost of funds in the fourth quarter of 2022 was 1.00%, up 45 basis points from the third quarter of 2022 and up 79 basis points from the fourth quarter of 2021. The year-over-year increase is largely due to utilization of higher cost FHLB borrowings in support of loan growth in excess of deposit growth. The linked quarter increase is due to higher rates on FHLB borrowings, utilization of brokered deposits and higher average deposit costs. Excluding brokered deposits and acquisition marks accretion, average deposit costs increased 33 basis points to 0.72% for the fourth quarter of 2022, which represents a beta of 22% compared to the change in the quarterly average effective Federal Funds rate.

Non-interest income

Service fees in the fourth quarter of 2022 were $6.6 million, a 1.3% increase from $6.5 million in the third quarter of 2022 and a 4.4% increase from $6.4 million in the fourth quarter of 2021, primarily due to fluctuations in consumer activity for interchange and ATM/NSF charges. However, total non-interest income in the fourth quarter of 2022 of $14.2 million was down 14.8% from $16.7 million in the third quarter of 2022 and down 19.1% from $17.6 million in the fourth quarter of 2021 primarily due to fluctuations in mortgage banking and gains/losses on securities. Mortgage banking income decreased by $4.3 million on a linked quarter basis due to a $4.6 million decrease in gains, primarily from higher hedge costs, partially offset by a $0.3 million higher MSR valuation gain. Mortgage banking income for the fourth quarter decreased $3.4 million year-over-year due to a $4.1 million decrease in gains primarily from compressed margins and lower saleable mix offset partly by a $0.5 million benefit from lower MSR amortization and a $0.2 million higher MSR valuation gain. Securities gains were $1.2 million in the fourth quarter of 2022 primarily from $1.3 million of gains on the sale of $8.7 million of equity securities, which were partially offset by $0.1 million of decreased valuations on remaining equity securities. This compares to $43 thousand of losses from decreased valuations on equity securities in the third quarter of 2022 and $1.1 million of gains from increased valuations on equity securities in the fourth quarter of 2021. An additional $9.6 million of available-for-sale securities were sold for a gain of $1 thousand during the fourth quarter of 2022. The combined $18.3 million of proceeds from security sales will benefit net interest income beginning in the first quarter of 2023. BOLI income of $1.0 million in the fourth quarter 2022 decreased from $2.1 million in the fourth quarter 2021 due to $1.1 million of claim gains in 2021 compared to none in 2022.

“We are pleased to note we originated over $1 billion in residential mortgages for the year in a very difficult environment,” Small added. “We continue to adjust our product offering to optimize the saleable mix and improve our gain on sale margins and remain very committed to the business over the long-term.”

Non-interest expenses

Non-interest expenses in the fourth quarter of 2022 were $43.0 million, a 4.7% increase from $41.1 million in the third quarter of 2022 and a 3.7% increase from $41.5 million in the fourth quarter of 2021. Compensation and benefits were $25.0 million in the fourth quarter of 2022, compared to $24.5 million in the third quarter of 2022 and $24.2 million in the fourth quarter of 2021. The linked quarter increase was primarily due to lower deferred costs related to decreased loan production. The year-over-year increase was primarily due to costs related to higher staffing levels for our growth initiatives and higher base compensation including mid-year adjustments. Data processing and FDIC premiums increased $0.8 million and $0.3 million on a linked quarter basis, respectively, and $0.4 million and $0.5 million on a year-over-year basis, respectively, due to our growth initiatives. All other non-interest expenses increased a net $0.4 million on a linked quarter basis and decreased a net $0.1 million on a year-over-year basis. The efficiency ratio for the fourth quarter 2022 of 56.76% worsened from 51.26% in the third quarter of 2022 and from 56.14% in the fourth quarter of 2021, primarily due to higher expenses.

Credit quality

Non-performing assets totaled $34.4 million, or 0.4% of assets, at December 31, 2022, an increase from $33.6 million at September 30, 2022, but a decrease from $48.2 million at December 31, 2021. Loan delinquencies increased to $18.3 million, or 0.3% of loans, at December 31, 2022, from $13.2 million at September 30, 2022, and from $12.3 million at December 31, 2021. Classified loans totaled $43.8 million, or 0.6% of loans, as of December 31, 2022, a decrease from $45.0 million at September 30, 2022, and from $69.5 million at December 31, 2021.

The 2022 fourth quarter results include net loan charge-offs of $830 thousand and a total provision expense of $2.8 million, compared with net loan charge-offs of $9.6 million and a total provision expense of $2.0 million for the same period in 2021. The current year provision is primarily due to higher non-PPP loan growth in 2022 compared to 2021. The allowance for credit losses as a percentage of total loans was 1.13% at December 31, 2022, compared with 1.14% at September 30, 2022, and 1.26% at December 31, 2021. The allowance for credit losses as a percentage of total loans excluding PPP and including unaccreted acquisition marks was 1.17% at December 31, 2022, compared with 1.19% at September 30, 2022, and 1.37% at December 31, 2021. The continued economic improvement following the 2020 pandemic-related downturn has resulted in a year-over-year decrease in the allowance percentages.

“We are pleased with our improved asset quality this year, including a 28.5% decrease in non-performing assets to 0.41% of total assets and a 37.0% decrease in classified loans to 0.61% of loans,” said Paul Nungester, CFO of Premier. “Net charge-offs for 2022 were only 0.015% of average loans excluding $5.3 million for the student loan servicer credit that was reserved for in 2021.”

Annual results

For the year ended December 31, 2022, net income totaled $102.2 million, or $2.85 per diluted common share, compared to $126.1 million, or $3.39 per diluted common share for the year ended December 31, 2021. The year-over-year comparison is primarily impacted by fluctuations in the provision for credit losses, which was an expense of $14.3 million or $0.32 per diluted share in 2022 compared to a benefit of $7.1 million or $0.15 per share in 2021. The current year’s provision expense is primarily due to loan growth, whereas the prior year’s provision benefit was primarily due to the improving economic environment following the COVID-19 pandemic-induced economic recession and reserve increase in 2020.

TE net interest income of $243.7 million in 2022 was up 6.7% from $228.4 million in 2021. TE net interest margin of 3.37% in 2022 decreased by two basis points from 3.39% in 2021. Results for each period include the impact of PPP as well as acquisition marks and related accretion. 2022 includes $1.7 million of accretion in interest income, $0.9 million of accretion in interest expense and $3.8 million of interest income on average balances of $12.1 million for PPP. Excluding the impact of acquisition marks accretion and PPP loans, core net interest income was $237.3 million, up 14.1% from $208.0 million in 2021. Additionally, core net interest margin was 3.28% for 2022, up four basis points from 3.24% for 2021. These improved results are primarily due to loan growth excluding PPP partially offset by lower PPP income and accretion from acquisition marks. Cost of funds in 2022 was 0.51%, up 26 basis points from 2021. The year-over-year increase is primarily due to an increased utilization of higher cost FHLB borrowings in support of loan growth in excess of deposit growth and higher average deposit costs.

Service fees in 2022 were $25.9 million, a 7.0% increase from $24.2 million in 2021, primarily due to increased consumer activity for interchange and ATM/NSF charges. However, total non-interest income in 2022 of $62.2 million was down 21.6% from $79.3 million in 2021 due to fluctuations in mortgage banking, gains/losses on securities, BOLI and other income. Mortgage banking income decreased $12.1 million from 2021 due to a $10.7 million decrease in gains primarily from compressed margins and lower saleable mix and a $3.8 million decrease from lower MSR valuation gains, partially offset by a $2.5 million benefit from lower MSR amortization. Securities losses were $0.6 million in 2022 primarily from $1.3 million of gains on the sale of $8.7 million of equity securities that partially offset $1.9 million of decreased valuations on equity securities compared to $4.2 million of net gains in 2021 comprised of $2.2 million from available-for-sale security sales gains and $2.0 million of gains from increased valuations on equity securities. BOLI income for 2022 decreased $1.2 million from 2021, primarily due to $1.1 million of claim gains in 2021. Other income for 2022 decreased $1.1 million from 2021, primarily due to a $1.3 million non-recurring settlement payment in 2021.

Non-interest expenses in 2022 were $164.5 million, a 4.6% increase from $157.3 million in 2021, primarily due to fluctuations in compensation and benefit expenses. Compensation and benefits were $97.4 million in 2022 compared to $90.6 million in 2021. The year-over-year increase was primarily due to costs related to higher staffing levels for our growth initiatives and higher base compensation including mid-year adjustments. All other non-interest expenses increased a net $0.4 million on a year-over-year basis. The efficiency ratio for 2022 was 53.68% compared to 51.83% in 2021, partly due to higher expenses but also due to lower non-interest income discussed above.

Total assets at $8.46 billion

Total assets at December 31, 2022, were $8.46 billion, compared to $8.24 billion at September 30, 2022, and $7.48 billion at December 31, 2021. Gross loans receivable were $6.46 billion at December 31, 2022, compared to $6.21 billion at September 30, 2022, and $5.30 billion at December 31, 2021. At December 31, 2022, gross loans receivable increased $1.16 billion from a year ago, despite a $57.8 million decrease in PPP loans. Excluding PPP, loans grew $1.22 billion organically, or 23.3% from a year ago. Commercial loans excluding PPP increased by $694.7 million from December 31, 2021, to 2022, or 19.6%. Securities at December 31, 2022, were $1.05 billion, compared to $1.08 billion at September 30, 2022, and $1.22 billion at December 31, 2021. Also, at December 31, 2022, goodwill and other intangible assets totaled $337.1 million compared to $337.9 million at September 30, 2022, and $342.1 million at December 31, 2021, with the decreases attributable to intangibles amortization.

Total non-brokered deposits at December 31, 2022, were $6.76 billion, compared with $6.66 billion at September 30, 2022, and $6.28 billion at December 31, 2021. At December 31, 2022, customer deposits grew $100.4 million organically, or 6.0% annualized from the prior quarter and $481.0 million or 7.7% from December 31, 2021. Brokered deposits were $143.7 million at December 31, 2022, compared to $69.9 million at September 30, 2022 and none at December 31, 2021.

Total stockholders’ equity was $0.89 billion at December 31, 2022, compared to $0.86 billion at September 30, 2022, and $1.02 billion at December 31, 2021. The quarterly increase in stockholders’ equity was primarily due to net earnings after dividends. The year-over-year decrease was primarily due to a decrease in accumulated other comprehensive income (“AOCI”), which was primarily related to a $138 million negative valuation adjustment on the available-for-sale securities portfolio. At December 31, 2022, 1,200,025 common shares remained available for repurchase under the Company’s existing repurchase program.

Insurance Agency Acquisition

On December 30, 2022, Premier, through its wholly owned subsidiary First Insurance Group of the Midwest, Inc. (“FIG”), completed the acquisition of Benham Insurance Associates, Inc. (“BIA”), a property and casualty insurance agency. Located in Holland, Ohio, with annual revenues of approximately $0.2 million, BIA will be added to Premier’s FIG platform.

Dividend to be paid February 17

The Board of Directors declared a quarterly cash dividend of $0.31 per common share payable February 17, 2023, to shareholders of record at the close of business on February 10, 2023. The dividend represents an annual dividend of 4.5 percent based on the Premier common stock closing price on January 23, 2022. Premier has approximately 35,602,000 common shares outstanding.

Conference call

Premier will host a conference call at 11:00 a.m. ET on Wednesday, January 25, 2023, to discuss the earnings results and business trends. The conference call may be accessed by calling 1-844-200-6205 and using access code 105871. Internet access to the call is also available (in listen-only mode) at the following URL: https://events.q4inc.com/attendee/815175646. The webcast replay of the conference call will be available at www.PremierFinCorp.com for one year.

About Premier Financial Corp.

Premier Financial Corp. (Nasdaq: PFC), headquartered in Defiance, Ohio, is the holding company for Premier Bank and First Insurance Group. Premier Bank, headquartered in Youngstown, Ohio, operates 74 branches and 12 loan offices in Ohio, Michigan, Indiana, Pennsylvania and West Virginia (West Virginia office operates as Home Savings Bank) and serves clients through a team of wealth professionals dedicated to each community banking branch. First Insurance Group is a full-service insurance agency with ten offices in Ohio. For more information, visit the company’s website at PremierFinCorp.com.

Financial Statements and Highlights Follow-

Safe Harbor Statement

This document may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These statements may include, but are not limited to, statements regarding projections, forecasts, goals and plans of Premier Financial Corp. and its management, future movements of interests, loan or deposit production levels, future credit quality ratios, future strength in the market area, and growth projections. These statements do not describe historical or current facts and may be identified by words such as “intend,” “intent,” “believe,” “expect,” “estimate,” “target,” “plan,” “anticipate,” or similar words or phrases, or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “may,” “can,” or similar verbs. There can be no assurances that the forward-looking statements included in this presentation will prove to be accurate. In light of the significant uncertainties in the forward-looking statements, the inclusion of such information should not be regarded as a representation by Premier or any other persons, that our objectives and plans will be achieved. Forward-looking statements involve numerous risks and uncertainties, any one or more of which could affect Premier’s business and financial results in future periods and could cause actual results to differ materially from plans and projections. These risks and uncertainties include, but not limited to: impacts from the novel coronavirus (COVID-19) pandemic on the economy, financial markets, our customers, and our business and results of operation; changes in interest rates; disruptions in the mortgage market; risks and uncertainties inherent in general and local banking, insurance and mortgage conditions; political uncertainty; uncertainty in U.S. fiscal or monetary policy; uncertainty concerning or disruptions relating to tensions surrounding the current socioeconomic landscape; competitive factors specific to markets in which Premier operates; increasing competition for financial products from other financial institutions and nonbank financial technology companies; legislative or regulatory rulemaking or actions; capital market conditions; security breaches or unauthorized disclosure of confidential customer or Company information; interruptions in the effective operation of information and transaction processing systems of Premier or Premier’s vendors and service providers; failures or delays in integrating or adopting new technology; the impact of the cessation of LIBOR interest rates and implementation of a replacement rate; and other risks and uncertainties detailed from time to time in our Securities and Exchange Commission (SEC) filings, including our Annual Report on Form 10-K for the year ended December 31, 2021 and any further amendments thereto. All forward-looking statements made in this presentation are based on information presently available to the management of Premier and speak only as of the date on which they are made. We assume no obligation to update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as may be required by law. As required by U.S. GAAP, Premier will evaluate the impact of subsequent events through the issuance date of its December 31, 2022, consolidated financial statements as part of its Annual Report on Form 10-K to be filed with the SEC. Accordingly, subsequent events could occur that may cause Premier to update its critical accounting estimates and to revise its financial information from that which is contained in this news release.

Non-GAAP Reporting Measures

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

Consolidated Balance Sheets (Unaudited)
Premier Financial Corp.
	December 31,			September 30,			June 30,			March 31,			December 31,
(in thousands)	2022			2022			2022			2022			2021
Assets
Cash and cash equivalents
Cash and amounts due from depositories	$	88,257		$	67,124		$	62,080		$	62,083		$	54,858
Interest-bearing deposits		39,903			37,868			72,314			91,683			106,708
		128,160			104,992			134,394			153,766			161,566
Available-for-sale, carried at fair value		1,040,081			1,063,713			1,140,466			1,219,365			1,206,260
Equity securities, carried at fair value		7,832			15,336			13,293			13,454			14,097
Securities investments		1,047,913			1,079,049			1,153,759			1,232,819			1,220,357
Loans (1)		6,460,620			6,207,708			5,890,823			5,388,331			5,296,168
Allowance for credit losses - loans		(72,816	)		(70,626	)		(67,074	)		(67,195	)		(66,468	)
Loans, net		6,387,804			6,137,082			5,823,749			5,321,136			5,229,700
Loans held for sale		115,251			129,142			145,092			153,498			162,947
Mortgage servicing rights		21,171			20,832			20,693			20,715			19,538
Accrued interest receivable		28,709			26,021			22,533			21,765			20,767
Federal Home Loan Bank stock		29,185			28,262			23,991			15,332			11,585
Bank Owned Life Insurance		170,713			169,728			168,746			167,763			166,767
Office properties and equipment		55,541			53,747			54,060			54,684			55,602
Real estate and other assets held for sale		619			416			462			253			171
Goodwill		317,988			317,948			317,948			317,948			317,948
Core deposit and other intangibles		19,074			19,972			21,311			22,691			24,129
Other assets		133,214			148,949			123,886			108,510			90,325
Total Assets	$	8,455,342		$	8,236,140		$	8,010,624		$	7,590,880		$	7,481,402
Liabilities and Stockholders’ Equity
Non-interest-bearing deposits	$	1,869,509		$	1,826,511		$	1,786,516		$	1,733,157		$	1,724,772
Interest-bearing deposits		4,893,502			4,836,113			4,729,828			4,584,078			4,557,279
Brokered deposits		143,708			69,881			-			-			-
Total deposits		6,906,719			6,732,505			6,516,344			6,317,235			6,282,051
Advances from FHLB		428,000			411,000			380,000			150,000			-
Notes payable and other interest-bearing liabilities		-			-			-			-			-
Subordinated debentures		85,103			85,071			85,039			85,008			84,976
Advance payments by borrowers		34,188			33,511			40,344			20,332			24,716
Reserve for credit losses - unfunded commitments		6,816			7,061			6,755			5,340			5,031
Other liabilities		106,795			102,032			80,995			69,669			61,132
Total Liabilities		7,567,621			7,371,180			7,109,477			6,647,584			6,457,906
Stockholders’ Equity
Preferred stock		-			-			-			-			-
Common stock, net		306			306			306			306			306
Additional paid-in-capital		691,453			691,578			690,905			691,350			691,132
Accumulated other comprehensive income (loss)		(173,460	)		(181,231	)		(126,754	)		(75,497	)		(3,428	)
Retained earnings		502,909			488,305			470,779			459,087			443,517
Treasury stock, at cost		(133,487	)		(133,998	)		(134,089	)		(131,950	)		(108,031	)
Total Stockholders’ Equity		887,721			864,960			901,147			943,296			1,023,496
Total Liabilities and Stockholders’ Equity	$	8,455,342		$	8,236,140		$	8,010,624		$	7,590,880		$	7,481,402
(1) Includes PPP loans of:	$	1,143		$	1,181		$	4,561		$	18,660		$	58,906

Consolidated Statements of Income (Unaudited)
Premier Financial Corp.
	Three Months Ended																Twelve Months Ended
(in thousands, except per share amounts)	12/31/22			9/30/22			6/30/22			3/31/22			12/31/21				12/31/22			12/31/21
Interest Income:
Loans	$	72,194		$	65,559		$	56,567		$	55,241		$	55,007			$	249,561		$	223,787
Investment securities		7,605			6,814			6,197			5,479			5,369				26,095			19,369
Interest-bearing deposits		444			221			120			46			56				831			198
FHLB stock dividends		482			510			174			59			58				1,225			233
Total interest income		80,725			73,104			63,058			60,825			60,490				277,712			243,587
Interest Expense:
Deposits		13,161			6,855			2,671			2,222			2,615				24,909			13,482
FHLB advances		3,941			2,069			527			13			-				6,550			23
Subordinated debentures		1,000			868			763			696			673				3,327			2,713
Notes Payable		4			-			1			-			-				5			-
Total interest expense		18,106			9,792			3,962			2,931			3,288				34,791			16,218
Net interest income		62,619			63,312			59,096			57,894			57,202				242,921			227,369
Provision (benefit) for credit losses - loans		3,020			3,706			5,151			626			2,816				12,503			(6,733	)
Provision (benefit) for credit losses - unfunded commitments		(246	)		306			1,415			309			(807	)			1,784			(319	)
Total provision (benefit) for credit losses		2,774			4,012			6,566			935			2,009				14,287			(7,052	)
Net interest income after provision		59,845			59,300			52,530			56,959			55,193				228,634			234,421
Non-interest Income:
Service fees and other charges		6,632			6,545			6,676			6,000			6,351				25,853			24,168
Mortgage banking income		(299	)		3,970			1,948			4,252			3,060				9,871			21,925
Gain (loss) on sale of available for sale securities		1			-			-			-			-				1			2,218
Gain (loss) on equity securities		1,209			43			(1,161	)		(643	)		1,132				(551	)		1,954
Insurance commissions		3,576			3,488			4,334			4,639			3,379				16,228			15,780
Wealth management income		1,582			1,355			1,414			1,477			1,383				5,828			6,027
Income from Bank Owned Life Insurance		984			983			983			996			2,145				3,946			5,121
Other non-interest income		543			320			171			142			129				984			2,133
Total Non-interest Income		14,228			16,704			14,365			16,863			17,579				62,160			79,326
Non-interest Expense:
Compensation and benefits		24,999			24,522			22,334			25,541			24,247				97,396			90,646
Occupancy		3,383			3,463			3,494			3,700			3,859				14,039			15,501
FDIC insurance premium		1,276			976			802			593			781				3,647			2,896
Financial institutions tax		795			1,050			1,074			1,191			526				4,110			4,079
Data processing		3,882			3,121			3,442			3,335			3,447				13,780			13,550
Amortization of intangibles		1,293			1,338			1,380			1,438			1,483				5,450			6,208
Other non-interest expense		7,400			6,629			6,563			5,497			7,145				26,089			24,444
Total Non-interest Expense		43,028			41,099			39,089			41,295			41,488				164,511			157,324
Income before income taxes		31,045			34,905			27,806			32,527			31,284				126,283			156,423
Income tax expense		5,770			6,710			5,446			6,170			5,974				24,096			30,372
Net Income	$	25,275		$	28,195		$	22,360		$	26,357		$	25,310			$	102,187		$	126,051
Earnings per common share:
Basic	$	0.71		$	0.79		$	0.63		$	0.73		$	0.69			$	2.86		$	3.39
Diluted	$	0.71		$	0.79		$	0.63		$	0.73		$	0.69			$	2.85		$	3.39
Average Shares Outstanding:
Basic		35,589			35,582			35,560			35,978			36,740				35,679			37,109
Diluted		35,790			35,704			35,682			36,090			36,848				35,809			37,200

Premier Financial Corp.
Selected Quarterly Information
(dollars in thousands, except per share data)	4Q22			3Q22			2Q22			1Q22			4Q21				YTD 2022			YTD 2021
Summary of Operations
Tax-equivalent interest income (1)	$	80,889		$	73,301		$	63,283		$	61,054		$	60,740			$	278,526		$	244,600
Interest expense		18,106			9,792			3,962			2,931			3,288				34,791			16,218
Tax-equivalent net interest income (1)		62,783			63,509			59,321			58,123			57,452				243,735			228,382
Provision expense (benefit) for credit losses		2,774			4,012			6,566			935			2,009				14,287			(7,052	)
Investment securities gains (losses)		1,210			43			(1,161	)		(643	)		1,132				(550	)		4,172
Non-interest income (ex securities gains/losses)		13,018			16,661			15,526			17,506			16,447				62,710			75,154
Non-interest expense		43,028			41,099			39,089			41,295			41,488				164,511			157,324
Income tax expense		5,770			6,710			5,446			6,170			5,974				24,096			30,372
Net income		25,275			28,195			22,360			26,357			25,310				102,187			126,051
Tax equivalent adjustment (1)		164			197			225			229			250				814			1,013
At Period End
Total assets	$	8,455,342		$	8,236,140		$	8,010,624		$	7,590,880		$	7,481,402
Goodwill and intangibles		337,062			337,920			339,259			340,639			342,077
Tangible assets (2)		8,118,280			7,898,220			7,671,365			7,250,241			7,139,325
Earning assets		7,620,056			7,411,403			7,218,905			6,881,663			6,797,765
Loans		6,460,620			6,207,708			5,890,823			5,388,331			5,296,168
Allowance for loan losses		72,816			70,626			67,074			67,195			66,468
Deposits		6,906,719			6,732,505			6,516,344			6,317,235			6,282,051
Stockholders’ equity		887,721			864,960			901,147			943,296			1,023,496
Stockholders’ equity / assets		10.50	%		10.50	%		11.25	%		12.43	%		13.68	%
Tangible equity (2)		550,659			527,040			561,888			602,657			681,419
Tangible equity / tangible assets		6.78	%		6.67	%		7.32	%		8.31	%		9.54	%
Average Balances
Total assets	$	8,304,462		$	8,161,389		$	7,742,550		$	7,541,414		$	7,510,397			$	7,932,398		$	7,482,578
Earning assets		7,653,648			7,477,795			7,051,661			6,754,862			6,736,250				7,237,621			6,732,178
Loans		6,359,564			6,120,324			5,667,853			5,382,825			5,356,113				5,885,969			5,473,668
Deposits and interest-bearing liabilities		7,278,531			7,116,910			6,706,250			6,415,483			6,386,341				6,882,309			6,385,080
Deposits		6,773,382			6,654,328			6,385,857			6,314,217			6,301,384				6,533,539			6,287,531
Stockholders’ equity		875,287			912,224			921,847			1,033,816			1,035,717				927,534			1,009,037
Goodwill and intangibles		337,207			338,583			339,932			341,353			342,853				339,255			345,187
Tangible equity (2)		538,080			573,641			581,915			692,463			692,864				588,279			663,850
Per Common Share Data
Net Income (Loss):
Basic	$	0.71		$	0.79		$	0.63		$	0.73		$	0.69			$	2.86		$	3.39
Diluted		0.71			0.79			0.63			0.73			0.69				2.85			3.39
Dividends Paid		0.30			0.30			0.30			0.30			0.28				1.20			1.05
Market Value:
High	$	30.51		$	29.36		$	30.13		$	32.52		$	34.00			$	32.52		$	35.90
Low		26.11			24.67			25.31			28.58			28.75				24.67			22.23
Close		26.97			25.70			25.35			30.33			30.91				26.97			30.91
Common Book Value		24.94			24.32			25.35			26.48			28.13
Tangible Common Book Value (2)		15.47			14.82			15.80			16.92			18.73
Shares outstanding, end of period (000s)		35,591			35,563			35,555			35,621			36,384
Performance Ratios (annualized)
Tax-equivalent net interest margin (1)		3.28	%		3.40	%		3.36	%		3.44	%		3.41	%			3.37	%		3.39	%
Return on average assets		1.21	%		1.37	%		1.16	%		1.42	%		1.34	%			1.29	%		1.68	%
Return on average equity		11.46	%		12.26	%		9.73	%		10.34	%		9.70	%			11.02	%		12.49	%
Return on average tangible equity		18.64	%		19.50	%		15.41	%		15.44	%		14.49	%			17.37	%		18.99	%
Efficiency ratio (3)		56.76	%		51.26	%		52.23	%		54.60	%		56.14	%			53.68	%		51.83	%
Effective tax rate		18.59	%		19.22	%		19.59	%		18.97	%		19.10	%			19.08	%		19.42	%
Common dividend payout ratio		42.25	%		37.97	%		47.62	%		41.10	%		40.58	%			42.11	%		30.97	%
(1) Interest income on tax-exempt securities and loans has been adjusted to a tax-equivalent basis using the statutory federal income tax rate of 21%.
(2) Tangible assets = total assets less the sum of goodwill and core deposit and other intangibles. Tangible equity = total stockholders' equity less the sum of goodwill, core deposit and other intangibles, and preferred stock. Tangible common book value = tangible equity divided by shares outstanding at the end of the period.
(3) Efficiency ratio = Non-interest expense divided by sum of tax-equivalent net interest income plus non-interest income, excluding securities gains or losses, net.

Premier Financial Corp.
Yield Analysis
(dollars in thousands)
	Three Months Ended																Twelve Months Ended
	12/31/22			9/30/22			6/30/22			3/31/22			12/31/21				12/31/22			12/31/21
Average Balances
Interest-earning assets:
Loans receivable (1)	$	6,359,564		$	6,120,324		$	5,667,853		$	5,382,825		$	5,356,113			$	5,885,969		$	5,473,668
Securities		1,235,814			1,261,527			1,288,073			1,250,321			1,245,096				1,258,901			1,135,434
Interest Bearing Deposits		29,884			68,530			76,401			109,757			123,456				70,917			111,433
FHLB stock		28,386			27,414			19,334			11,959			11,585				21,834			11,643
Total interest-earning assets		7,653,648			7,477,795			7,051,661			6,754,862			6,736,250				7,237,621			6,732,178
Non-interest-earning assets		650,814			683,594			690,889			786,552			774,147				694,777			750,400
Total assets	$	8,304,462		$	8,161,389		$	7,742,550		$	7,541,414		$	7,510,397			$	7,932,398		$	7,482,578
Deposits and Interest-bearing Liabilities:
Interest bearing deposits	$	4,901,412		$	4,846,419		$	4,614,223		$	4,600,801		$	4,609,064			$	4,741,827		$	4,611,525
FHLB advances and other		419,761			377,533			234,945			16,278			-				263,551			12,586
Subordinated debentures		85,084			85,049			85,020			84,988			84,957				85,036			84,911
Notes payable		304			-			428			-			-				183			52
Total interest-bearing liabilities		5,406,561			5,309,001			4,934,616			4,702,067			4,694,021				5,090,597			4,709,074
Non-interest bearing deposits		1,871,970			1,807,909			1,771,634			1,713,416			1,692,320				1,791,712			1,676,006
Total including non-interest-bearing deposits		7,278,531			7,116,910			6,706,250			6,415,483			6,386,341				6,882,309			6,385,080
Other non-interest-bearing liabilities		150,644			132,255			114,453			92,115			88,339				122,555			88,461
Total liabilities		7,429,175			7,249,165			6,820,703			6,507,598			6,474,680				7,004,864			6,473,541
Stockholders' equity		875,287			912,224			921,847			1,033,816			1,035,717				927,534			1,009,037
Total liabilities and stockholders' equity	$	8,304,462		$	8,161,389		$	7,742,550		$	7,541,414		$	7,510,397			$	7,932,398		$	7,482,578
Average interest-earning assets to interest-bearing liabilities		142	%		141	%		143	%		144	%		144	%			142	%		143	%
Interest Income/Expense
Interest-earning assets:
Loans receivable (2)	$	72,201		$	65,564		$	56,573		$	55,248		$	55,013			$	249,586		$	223,823
Securities (2)		7,762			7,006			6,416			5,701			5,612				26,884			20,346
Interest Bearing Deposits		444			221			120			46			56				831			198
FHLB stock		482			510			174			59			59				1,225			233
Total interest-earning assets		80,889			73,301			63,283			61,054			60,740				278,526			244,600
Deposits and Interest-bearing Liabilities:
Interest bearing deposits	$	13,161		$	6,855		$	2,671		$	2,222		$	2,615			$	24,909		$	13,482
FHLB advances and other		3,941			2,069			527			13			-				6,550			23
Subordinated debentures		1,001			868			763			696			673				3,327			2,713
Notes payable		3			-			1			-			-				5			-
Total interest-bearing liabilities		18,106			9,792			3,962			2,931			3,288				34,791			16,218
Non-interest bearing deposits		-			-			-			-			-				-			-
Total including non-interest-bearing deposits		18,106			9,792			3,962			2,931			3,288				34,791			16,218
Net interest income	$	62,783		$	63,509		$	59,321		$	58,123		$	57,452			$	243,735		$	228,382
Less: PPP income		(6	)		(26	)		(160	)		(3,641	)		(2,686	)			(3,833	)		(14,544	)
Less: Acquisition marks accretion		(554	)		(608	)		(706	)		(737	)		(1,595	)			(2,606	)		(5,869	)
Core net interest income	$	62,223		$	62,875		$	58,455		$	53,745		$	53,171			$	237,296		$	207,969
Average Rates (3)
Interest-earning assets:
Loans receivable		4.54	%		4.29	%		3.99	%		4.11	%		4.11	%			4.24	%		4.09	%
Securities (4)		2.51	%		2.22	%		1.99	%		1.82	%		1.80	%			2.14	%		1.79	%
Interest Bearing Deposits		5.94	%		1.29	%		0.63	%		0.17	%		0.18	%			1.17	%		0.18	%
FHLB stock		6.79	%		7.44	%		3.60	%		1.97	%		2.04	%			5.61	%		2.00	%
Total interest-earning assets		4.23	%		3.92	%		3.59	%		3.62	%		3.61	%			3.85	%		3.63	%
Deposits and Interest-bearing Liabilities:
Interest bearing deposits		1.07	%		0.57	%		0.23	%		0.19	%		0.23	%			0.53	%		0.29	%
FHLB advances and other		3.76	%		2.19	%		0.90	%		0.32	%		0.00	%			2.49	%		0.18	%
Subordinated debentures		4.71	%		4.08	%		3.59	%		3.28	%		3.17	%			3.91	%		3.20	%
Notes payable		3.95	%		-			0.93	%		-			-				2.73	%		0.75	%
Total interest-bearing liabilities		1.34	%		0.74	%		0.32	%		0.25	%		0.28	%			0.68	%		0.37	%
Non-interest bearing deposits		-			-			-			-			-				-			-
Total including non-interest-bearing deposits		1.00	%		0.55	%		0.24	%		0.18	%		0.21	%			0.51	%		0.25	%
Net interest spread		2.89	%		3.18	%		3.27	%		3.37	%		3.33	%			3.17	%		3.29	%
Net interest margin (5)		3.28	%		3.40	%		3.36	%		3.44	%		3.41	%			3.37	%		3.39	%
Core net interest margin (5)		3.25	%		3.36	%		3.32	%		3.20	%		3.21	%			3.28	%		3.24	%
(1) Includes average PPP loans of:	$	1,160		$	1,889		$	12,966		$	32,853		$	101,804			$	12,102		$	282,693
(2) Interest on certain tax exempt loans and securities is not taxable for Federal income tax purposes. In order to compare the tax-exempt yields on these assets to taxable yields, the interest earned on these assets is adjusted to a pre-tax equivalent amount based on the marginal corporate federal income tax rate of 21%.
(3) Annualized.
(4) Securities yield = annualized interest income divided by the average balance of securities, excluding average unrealized gains/losses.
(5) Net interest margin is tax equivalent net interest income divided by average interest-earning assets. Core net interest margin represents net interest margin excluding PPP and acquisition marks accretion.

Premier Financial Corp.
Loans and Deposits Composition
(dollars in thousands)
	4Q22		3Q22		2Q22		1Q22		4Q21
Loan Portfolio Composition
Residential real estate	$	1,535,574	$	1,478,360	$	1,382,202	$	1,222,057	$	1,167,466
Residential real estate construction		176,737		119,204		85,256		97,746		121,621
Total residential loans		1,712,311		1,597,564		1,467,458		1,319,803		1,289,087
Commercial real estate		2,762,311		2,674,078		2,655,730		2,495,469		2,450,349
Commercial construction		428,743		398,044		319,590		260,421		263,304
Commercial excluding PPP		1,054,037		1,041,423		987,242		891,893		836,732
Core commercial loans (1)		4,245,091		4,113,545		3,962,562		3,647,783		3,550,385
Consumer direct/indirect		213,405		212,790		180,539		132,294		126,417
Home equity and improvement lines		277,613		272,367		266,144		261,176		264,354
Total consumer loans		491,018		485,157		446,683		393,470		390,771
Deferred loan origination fees		11,057		10,261		9,559		8,615		7,019
Core loans (1)		6,459,477		6,206,527		5,886,262		5,369,671		5,237,262
PPP loans		1,143		1,181		4,561		18,660		58,906
Total loans	$	6,460,620	$	6,207,708	$	5,890,823	$	5,388,331	$	5,296,168
Loans held for sale	$	115,251	$	129,142	$	145,092	$	153,498	$	162,947
Core residential loans (1)		1,827,562		1,726,706		1,612,550		1,473,301		1,452,034
Total loans including loans held for sale but excluding PPP		6,574,728		6,335,669		6,031,354		5,523,169		5,400,209
Undisbursed construction loan funds - residential	$	209,306	$	231,598	$	239,748	$	210,702	$	204,772
Undisbursed construction loan funds - commercial		463,469		493,199		449,101		314,843		273,118
Undisbursed construction loan funds - total		672,775		724,797		688,849		525,545		477,890
Total construction loans including undisbursed funds	$	1,278,255	$	1,242,045	$	1,093,695	$	883,712	$	862,815
Gross loans (2)	$	7,122,338	$	6,922,244	$	6,570,113	$	5,905,261	$	5,767,039
Deposit Portfolio Composition
Non-interest-bearing demand deposits	$	1,869,509	$	1,826,511	$	1,786,516	$	1,733,157	$	1,724,772
Interest-bearing demand deposits		1,048,666		1,084,550		1,060,308		1,135,088		1,015,795
Savings deposits		798,003		820,650		832,859		830,143		804,451
Money market account deposits		2,136,774		2,112,905		2,045,998		1,894,172		1,936,910
Retail time deposits less than $250		645,318		550,275		532,836		586,967		636,477
Retail time deposits greater than $250		264,741		267,733		257,827		137,708		163,646
Brokered deposits		143,708		69,881		-		-		-
Total deposits	$	6,906,719	$	6,732,505	$	6,516,344	$	6,317,235	$	6,282,051
(1) Core loans represents total loans excluding undisbursed loan funds, deferred loan origination fees and PPP loans. Core commercial loans represents total commercial real estate, commercial and commercial construction excluding commercial undisbursed loan funds, deferred loan origination fees and PPP loans. Core residential loans represents total loans held for sale, one to four family residential real estate and residential construction excluding residential undisbursed loan funds and deferred loan origination fees.
(2) Gross loans represent total loans including undisbursed construction funds but excluding deferred loan origination fees.

Premier Financial Corp.
Loan Delinquency Information
(dollars in thousands)	Total Balance		Current		30 to 89 days past due		% of Total		Non Accrual Loans		% of Total
December 31, 2022
One to four family residential real estate	$	1,535,574	$	1,520,074	$	6,792	0.4	%	$	8,708	0.6	%
Construction		1,278,255		1,277,818		437	0.0	%		-	0.0	%
Commercial real estate		2,762,311		2,747,539		1,205	0.0	%		13,567	0.5	%
Commercial		1,055,180		1,047,829		497	0.0	%		6,854	0.6	%
Home equity and improvement		277,613		270,138		5,216	1.9	%		2,259	0.8	%
Consumer finance		213,405		206,779		4,192	2.0	%		2,434	1.1	%
Gross loans	$	7,122,338	$	7,070,177	$	18,339	0.3	%	$	33,822	0.5	%
September 30, 2022
One to four family residential real estate	$	1,478,360	$	1,464,319	$	6,232	0.4	%	$	7,809	0.5	%
Construction		1,242,045		1,242,045		-	0.0	%		-	0.0	%
Commercial real estate		2,674,078		2,660,068		116	0.0	%		13,894	0.5	%
Commercial		1,042,604		1,034,898		338	0.0	%		7,368	0.7	%
Home equity and improvement		272,367		267,077		3,144	1.2	%		2,146	0.8	%
Consumer finance		212,790		207,453		3,417	1.6	%		1,920	0.9	%
Gross loans	$	6,922,244	$	6,875,860	$	13,247	0.2	%	$	33,137	0.5	%
December 31, 2021
One to four family residential real estate	$	1,167,466	$	1,149,333	$	6,212	0.5	%	$	11,921	1.0	%
Construction		862,815		861,326		1,489	0.2	%		-	0.0	%
Commercial real estate		2,450,349		2,435,491		15	0.0	%		14,843	0.6	%
Commercial		895,638		879,521		76	0.0	%		16,041	1.8	%
Home equity and improvement		264,354		258,661		2,517	1.0	%		3,176	1.2	%
Consumer finance		126,417		122,361		2,023	1.6	%		2,033	1.6	%
Gross loans	$	5,767,039	$	5,706,693	$	12,332	0.2	%	$	48,014	0.8	%
Loan Risk Ratings Information
(dollars in thousands)	Total Balance		Pass Rated		Special Mention		% of Total		Classified		% of Total
December 31, 2022
One to four family residential real estate	$	1,524,029	$	1,514,719	$	935	0.1	%	$	8,375	0.5	%
Construction		1,278,255		1,278,255		-	0.0	%		-	0.0	%
Commercial real estate		2,760,766		2,694,443		46,029	1.7	%		20,294	0.7	%
Commercial		1,050,122		1,016,973		26,319	2.5	%		6,830	0.7	%
Home equity and improvement		275,204		273,613		-	0.0	%		1,591	0.6	%
Consumer finance		213,131		210,760		-	0.0	%		2,371	1.1	%
PCD loans		20,831		13,904		2,590	12.4	%		4,337	20.8	%
Gross loans	$	7,122,338	$	7,002,667	$	75,873	1.1	%	$	43,798	0.6	%
September 30, 2022
One to four family residential real estate	$	1,466,470	$	1,458,082	$	1,267	0.1	%	$	7,121	0.5	%
Construction		1,242,045		1,240,745		1,300	0.1	%		-	0.0	%
Commercial real estate		2,672,451		2,584,984		65,233	2.4	%		22,234	0.8	%
Commercial		1,036,441		1,009,384		20,106	1.9	%		6,951	0.7	%
Home equity and improvement		269,786		268,384		-	0.0	%		1,402	0.5	%
Consumer finance		212,493		210,602		-	0.0	%		1,891	0.9	%
PCD loans		22,558		17,044		93	0.4	%		5,421	24.0	%
Gross loans	$	6,922,244	$	6,789,225	$	87,999	1.3	%	$	45,020	0.7	%
December 31, 2021
One to four family residential real estate	$	1,154,070	$	1,142,688	$	1,316	0.1	%	$	10,066	0.9	%
Construction		862,815		843,293		19,522	2.3	%		-	0.0	%
Commercial real estate		2,444,471		2,321,654		93,676	3.8	%		29,141	1.2	%
Commercial		886,472		857,905		14,815	1.7	%		13,752	1.6	%
Home equity and improvement		260,948		258,914		-	0.0	%		2,034	0.8	%
Consumer finance		125,926		124,073		-	0.0	%		1,853	1.5	%
PCD loans		32,337		19,547		101	0.3	%		12,689	39.2	%
Gross loans	$	5,767,039	$	5,568,074	$	129,430	2.2	%	$	69,535	1.2	%

Premier Financial Corp.
Selected Quarterly Information
(dollars in thousands)
	As of and for the three months ended																Twelve months ended
Mortgage Banking Summary	12/31/22			9/30/22			6/30/22			3/31/22			12/31/21				12/31/22			12/31/21
Revenue from sales and servicing of mortgage loans:
Mortgage banking gains, net	$	(1,285	)	$	3,363		$	1,166		$	2,543		$	2,774			$	5,787		$	16,437
Mortgage loan servicing revenue (expense):
Mortgage loan servicing revenue		1,862			1,861			1,862			1,879			1,909				7,464			7,574
Amortization of mortgage servicing rights		(1,271	)		(1,350	)		(1,375	)		(1,403	)		(1,774	)			(5,399	)		(7,892	)
Mortgage servicing rights valuation adjustments		396			96			295			1,233			151				2,019			5,806
		987			607			782			1,709			286				4,084			5,488
Total revenue from sale/servicing of mortgage loans	$	(298	)	$	3,970		$	1,948		$	4,252		$	3,060			$	9,871		$	21,925
Mortgage servicing rights:
Balance at beginning of period	$	21,915		$	21,872		$	22,189		$	22,244		$	21,963			$	22,244		$	21,666
Loans sold, servicing retained		1,214			1,393			1,058			1,348			2,056				5,013			8,471
Amortization		(1,271	)		(1,350	)		(1,375	)		(1,403	)		(1,774	)			(5,399	)		(7,893	)
Balance at end of period		21,858			21,915			21,872			22,189			22,245				21,858			22,244
Valuation allowance:
Balance at beginning of period		(1,083	)		(1,179	)		(1,474	)		(2,707	)		(2,858	)			(2,706	)		(8,513	)
Impairment recovery (charges)		396			96			295			1,233			151				2,019			5,807
Balance at end of period		(687	)		(1,083	)		(1,179	)		(1,474	)		(2,707	)			(687	)		(2,706	)
Net carrying value at end of period	$	21,171		$	20,832		$	20,693		$	20,715		$	19,538			$	21,171		$	19,538
																	$	-
Allowance Summary
Beginning allowance	$	70,626		$	67,074		$	67,195		$	66,468		$	73,217			$	66,468		$	82,079
Provision (benefit) for credit losses - loans		3,020			3,706			5,151			626			2,816				12,503			(6,733	)
Net recoveries (charge-offs)		(830	)		(154	)		(5,272	)		101			(9,565	)			(6,155	)		(8,878	)
Ending allowance	$	72,816		$	70,626		$	67,074		$	67,195		$	66,468			$	72,816		$	66,468
Total loans	$	6,460,620		$	6,207,708		$	5,890,823		$	5,388,331		$	5,296,168
Less: PPP loans		(1,143	)		(1,181	)		(4,561	)		(18,660	)		(58,906	)
Total loans ex PPP	$	6,459,477		$	6,206,527		$	5,886,262		$	5,369,671		$	5,237,262
Allowance for credit losses (ACL)	$	72,816		$	70,626		$	67,074		$	67,195		$	66,468
Add: Unaccreted purchase accounting marks		2,706			3,291			3,924			4,652			5,418
Adjusted ACL	$	75,522		$	73,917		$	70,998		$	71,847		$	71,886
ACL/Loans		1.13	%		1.14	%		1.14	%		1.25	%		1.26	%
Adjusted ACL/Loans ex PPP		1.17	%		1.19	%		1.21	%		1.34	%		1.37	%
Credit Quality
Total non-performing loans (1)	$	33,822		$	33,137		$	34,735		$	47,298		$	48,014
Real estate owned (REO)		619			416			462			253			171
Total non-performing assets (2)	$	34,441		$	33,553		$	35,197		$	47,551		$	48,185
Net charge-offs (recoveries)		830			154			5,272			(101	)		9,565
Restructured loans, accruing (3)		6,587			6,909			5,899			6,287			7,768
Allowance for credit losses - loans / loans		1.13	%		1.14	%		1.14	%		1.25	%		1.26	%
Allowance for credit losses - loans / non-performing assets		211.42	%		210.49	%		190.57	%		141.31	%		137.94	%
Allowance for credit losses - loans / non-performing loans		215.29	%		213.13	%		193.10	%		142.07	%		138.43	%
Non-performing assets / loans plus REO		0.53	%		0.54	%		0.60	%		0.88	%		0.91	%
Non-performing assets / total assets		0.41	%		0.41	%		0.44	%		0.63	%		0.64	%
Net charge-offs / average loans (annualized)		0.05	%		0.01	%		0.37	%		-0.01	%		0.71	%
Net charge-offs / average loans LTM		0.10	%		0.26	%		0.27	%		0.17	%		0.16	%
(1) Non-performing loans consist of non-accrual loans.
(2) Non-performing assets are non-performing loans plus real estate and other assets acquired by foreclosure or deed-in-lieu thereof.
(3) Accruing restructured loans are loans with known credit problems that are not contractually past due and therefore are not included in non-performing loans.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230124005934/en/

Paul Nungester

EVP and CFO, 419.785.8700

PNungester@yourpremierbank.com

Source: Premier Financial Corp.

FAQ

What are the Q4 2022 earnings results for Premier Financial Corp. (PFC)?

Premier Financial Corp. reported a net income of $25.3 million for Q4 2022.

What was the annual dividend declaration for Premier Financial Corp. in 2022?

The board declared a quarterly dividend of $0.31 per share, an increase of 3.3% compared to the previous year's dividend.

How did Premier Financial Corp.'s loan growth perform in 2022?

PFC achieved loan growth of $1.1 billion, representing a 20.5% increase over the year.

What was the net interest income for Premier Financial Corp. in 2022?

The net interest income for 2022 was $243.7 million, a 6.7% increase from 2021.

What was the efficiency ratio for Premier Financial Corp. in 2022?

The efficiency ratio for 2022 was 53.68%, up from 51.83% in 2021 due to higher expenses.