Premier Financial Corp. Announces Full Year 2024 Results

Rhea-AI Summary

Premier Financial Corp. (PFC) reported fourth quarter 2024 net income of $20.8 million, or $0.58 per diluted share, compared to $20.1 million ($0.56 per share) in Q4 2023. Excluding merger transaction costs, Q4 2024 earnings were $22.6 million or $0.63 per share.

Key Q4 highlights include a net interest margin increase to 2.63% (up 13 basis points from Q3), and an improved efficiency ratio of 57.1% excluding transaction costs. Total loans decreased by $115.7 million during Q4, while deposits declined by $292.8 million.

For full-year 2024, PFC reported net income of $71.4 million ($1.98 per share), down from $111.3 million ($3.11 per share) in 2023. The company announced a strategic merger with Wesbanco, Inc., where PFC shareholders will receive 0.80 shares of WSBC common stock for each PFC share, ultimately owning approximately 30% of the combined company.

Positive

• Net income increased to $20.8M in Q4 2024 from $20.1M in Q4 2023
• Net interest margin improved by 13 basis points to 2.63% from Q3 2024
• Interest-bearing deposit costs decreased 30 basis points from Q3 2024
• Efficiency ratio improved to 57.1% (excluding transaction costs) from 62.7% in Q3 2024
• Book value per share increased 2.3% to $27.95 from year-end 2023

Negative

• Full-year net income declined to $71.4M in 2024 from $111.3M in 2023
• Total loans decreased by $115.7M during Q4 2024
• Total deposits decreased by $292.8M in Q4 2024
• Non-performing assets increased to $81.7M from $35.7M year-over-year
• Criticized loans increased to $263.3M from $186.4M year-over-year

Insights

Financial Analyst

The Q4 2024 results reveal several important developments for Premier Financial. The net interest margin improvement to 2.63% (up 13 basis points) stands out as particularly significant, driven by successful deposit cost management with interest-bearing deposit costs decreasing by 30% QoQ. This margin expansion occurred despite industry headwinds, demonstrating effective balance sheet management.

The pending merger with Wesbanco represents a strategic transformation that will give PFC shareholders a 30% stake in the combined entity. The stock-for-stock transaction (0.80 WSBC shares for each PFC share) should create a stronger regional banking franchise with improved operational scale and efficiency. The combined entity's enhanced market presence could lead to better competitive positioning and potential cost synergies.

Asset quality metrics warrant attention, with non-performing assets at $81.7 million (0.95% of assets) and criticized loans increasing to $263.3 million. While these levels remain manageable, the upward trend from 2023 suggests potential credit stress in certain segments. However, the maintained allowance for credit losses at 1.17% provides adequate coverage.

The company's capital position remains robust with CET1 at 12.63%, well above regulatory requirements even when including AOCI. The declared quarterly dividend of $0.31 per share, yielding 4.93%, appears sustainable given the capital levels and earnings profile, though future dividend decisions may be influenced by the pending merger completion.

Declared dividend of $0.31 per share

Fourth Quarter Highlights

• Earnings per share of $0.58 or $0.63 excluding transaction costs, increases of $0.12 and $0.09, respectively, from third quarter 2024
• Interest-bearing deposit costs decreased 30 basis points from third quarter 2024
• Net interest margin increased 13 basis points to 2.63% from third quarter 2024
• Efficiency ratio of 60.4% or 57.1% excluding transaction costs, improvements of 6.8% and 5.6%, respectively, from third quarter 2024

Full Year 2024 Highlights

• Announced strategic merger with Wesbanco, Inc.
• Average deposits excluding brokereds increased 2% from 2023
• Average interest-earning assets increased 1% from 2023
• Book value per share of $27.95 and tangible book value per share of $19.47, increases of 2.3% and 4.2%, respectively, from year-end 2023

DEFIANCE, Ohio--(BUSINESS WIRE)-- Premier Financial Corp. (Nasdaq: PFC) (“Premier” or the “Company”) announced today 2024 fourth quarter and full year results.

Strategic merger

On July 26, 2024, PFC and Wesbanco, Inc. (Nasdaq: WSBC) announced the signing of a definitive merger agreement under which PFC will merge into WSBC in a stock-for-stock transaction. Under the terms of the merger agreement, shareholders of PFC will receive 0.80 shares of WSBC common stock for each share of PFC common stock. Premier Bank, a wholly owned subsidiary of PFC, will merge into Wesbanco Bank, Inc., a wholly owned subsidiary of WSBC. Upon closing, PFC shareholders will own approximately 30% of the combined company. During the fourth quarter of 2024, the approval of shareholders of both PFC and WSBC was obtained. The transaction remains on track, subject to regulatory approvals, as well as satisfaction or waiver of other customary closing conditions. Additional information can be found in the press release announcing the merger dated July 26, 2024.

Quarterly results

Net income for the fourth quarter of 2024 was $20.8 million, or $0.58 per diluted common share, compared to income of $20.1 million, or $0.56 per diluted common share, for the fourth quarter of 2023. Fourth quarter 2024 results included the impact of transaction costs for the strategic merger totaling $2.1 million pre-tax or $0.05 per diluted common share after-tax. Excluding the impact of these transaction costs, fourth quarter 2024 earnings were $22.6 million or $0.63 per diluted common share.

Net interest income and margin

Net interest income of $52.4 million on a tax equivalent (“TE”) basis in the fourth quarter of 2024 was up 4.2% from $50.3 million in the third quarter of 2024 and consistent with $52.6 million in the fourth quarter of 2023. The TE net interest margin of 2.63% in the fourth quarter of 2024 increased 13 basis points from 2.50% in the third quarter of 2024 but decreased two basis points from 2.65% in the fourth quarter of 2023. These results are primarily impacted by changes in deposit balances/costs and loan balances/yields.

Total loans including held-for-sale decreased $115.7 million during the fourth quarter of 2024, primarily due to an $67.7 million decrease in commercial loans. Total average loan yields decreased eight basis points to 5.25% for the fourth quarter of 2024. This decrease was primarily due to lower yields on floating rate loans.

Total deposits decreased $292.8 million during the fourth quarter of 2024, primarily due to a $232.7 million decrease in brokered deposits plus a decrease of $60.1 million in customer deposits. Total average interest-bearing deposit costs decreased 30 basis points to 2.85% during the fourth quarter of 2024 from the third quarter of 2024. Beginning in March 2024 and through December 2024, management implemented rate reductions in certain deposit tiers. The benefit of those actions were realized again in the fourth quarter of 2024 as the average cost of customer interest-bearing deposits declined from September to December after decreasing from June to September. In addition, partly due to the various Federal Funds Rate reductions, wholesale funding average costs for FHLB, brokered deposits and other borrowings also declined from June through December. As a result, total cost of funds decreased and net interest margin increased from June to December.

Non-interest income

Total non-interest income in the fourth quarter of 2024 of $13.1 million was up 3.9% from $12.6 million in the third quarter of 2024, and up 10.8% from $11.8 million in the fourth quarter of 2023, both primarily due to mortgage banking income. Mortgage banking income increased $0.6 million on a linked quarter basis and $1.0 million from fourth quarter 2023, primarily as a result of fluctuations in gain on sale margins and MSR valuation adjustments. During the third quarter of 2024, the company completed an aged loans sale that reduced gains on sale by approximately $0.3 million.

Security gains were $353 thousand in the fourth quarter of 2024, compared to gains of $410 thousand in the third quarter of 2024 and gains of $675 thousand in the fourth quarter of 2023, primarily due to valuation changes on equity securities. Service fees in the fourth quarter of 2024 were $7.5 million, a 3.0% decrease from $7.8 million in the third quarter of 2024, but an 11.3% increase from $6.8 million in the fourth quarter of 2023. These changes were primarily due to fluctuations in loan fees, including commercial customer swap activity. Wealth management income of $2.0 million in the fourth quarter of 2024 was up 6.3% from $1.9 million in the third quarter of 2024 and 11.4% higher than $1.8 million in the fourth quarter of 2023. BOLI income of $1.3 million in the fourth quarter of 2024, compared to $1.2 million in the third quarter of 2024, and $1.5 million in the fourth quarter of 2023 with $453 thousand of claim gains in the fourth quarter of 2023.

Non-interest expenses

Excluding transaction costs, non-interest expenses in the fourth quarter of 2024 were $37.2 million, a 5.0% decrease from $39.1 million in the third quarter of 2024, and a 1.9% decrease from $37.9 million in the fourth quarter of 2023. Compensation and benefits were $19.8 million in the fourth quarter of 2024, compared to $21.8 million in the third quarter of 2024 and $21.0 million in the fourth quarter of 2023. These decreases are primarily due to lower staffing levels. Data processing costs were $5.1 million in the fourth quarter of 2024, compared to $5.1 million in the third quarter of 2024 and $4.7 million in the fourth quarter of 2023, with the year-over-year increase primarily due to the new digital platform launched in October 2023. All other non-interest expenses were flat on a linked quarter basis and a net $25 thousand from fourth quarter 2023. The core efficiency ratio for the fourth quarter of 2024 was 57.1% compared to 62.7% in the third quarter of 2024 and 59.5% in the fourth quarter of 2023. The ratio of core non-interest expenses to average assets was 1.71% for the fourth quarter of 2024 compared to 1.79% for the third quarter of 2024 and to 1.76% for the fourth quarter of 2023.

Credit quality

Non-performing assets totaled $81.7 million, or 0.95% of assets, at December 31, 2024, a decrease from $82.3 million at September 30, 2024, but an increase from $35.7 million at December 31, 2023. Loan delinquencies increased to $21.2 million, or 0.32% of loans, at December 31, 2024, from $17.2 million at September 30, 2024, and from $20.9 million at December 31, 2023. Criticized loans totaled $263.3 million, or 3.95% of loans, as of December 31, 2024, an increase from $245.7 million at September 30, 2024, and from $186.4 million at December 31, 2023.

The 2024 fourth quarter results include net charge-offs of $1.1 million and a total provision expense of $11 thousand, compared with net loan charge-offs of $2.1 million and a total provision expense of $1.8 million for the same period in 2023. The change in provision is primarily due to lower loan balances. The allowance for credit losses as a percentage of total loans was 1.17% at December 31, 2024, compared with 1.16% at September 30, 2024, and 1.14% at December 31, 2023.

Full year results

Net income for the full year 2024 was $71.4 million, or $1.98 per diluted common share, compared to income of $111.3 million, or $3.11 per diluted common share for the full year 2023. 2024 results included the impact of transaction costs for the strategic merger totaling $5.0 million pre-tax or $0.14 per diluted common share after-tax. Excluding the impact of these transaction costs, 2024 core earnings were $75.9 million or $2.12 per diluted common share. 2023 results included the impact of the insurance agency sale for a net gain on sale after transaction costs of $32.6 million pre-tax or $0.67 per diluted common share after-tax. Excluding the impact of this item, 2023 core earnings were income of $87.1 million or $2.44 per diluted common share.

Net interest income of $201.6 million on a TE basis for the full year 2024 was down 7.3% from $217.4 million in the full year 2023. The TE net interest margin of 2.52% in the full year 2024 decreased 23 basis points from 2.75% in the full year 2023. These results are positively impacted by higher loan yields, which were 5.26% for the full year 2024 compared to 4.96% in the full year 2023. These results are negatively impacted by an increase in the cost of funds in the full year 2024 of 2.43%, up 56 basis points from the full year 2023. The year-over-year increase is largely due to higher costs of customer deposits.

Total non-interest income in the full year 2024 of $50.2 million was up 9.9% from $45.7 million in the full year 2023, excluding insurance commissions and the gain on the sale of the insurance agency. Mortgage banking income increased $0.6 million year-over-year primarily as a result of a $0.8 million increase in mortgage servicing rights valuation.

Security gains were $550 thousand in the full year 2024 compared to $416 thousand in losses during the full year 2023, primarily due to valuations on equity securities. Service fees in the full year 2024 were $28.8 million, a 5.2% increase from $27.4 million in the full year 2023, primarily due to fluctuations in loan fees including commercial customer swap activity and consumer activity for interchange and ATM/NSF charges. Due to the insurance agency sale on June 30, 2023, there were no insurance commissions in 2024, compared to $8.9 million in 2023. Wealth management income of $7.4 million in the full year 2024 was up 17.5% from $6.3 million in the full year 2023. BOLI income of $5.4 million in the full year 2024 included $0.5 million of claim gains, compared to $5.0 million in the full year 2023, including $0.9 million of claim gains.

Excluding transaction costs, non-interest expenses in the full year 2024 were $154.3 million, a 3.3% decrease from $159.6 million in the full year 2023. Compensation and benefits were $86.3 million in the full year 2024, compared to $92.6 million in the full year 2023. The year-over-year decrease was primarily due to the insurance agency sale, partially offset by costs related to higher staffing levels and higher base compensation, including 2024 annual merit adjustments. FDIC premiums decreased $0.8 million on a year-over-year basis primarily due to lower rates. Data processing costs were $19.9 million in the full year 2024, compared to $16.2 million in the full year 2023, with the year-over-year increase primarily due to the new digital platform launched in October 2023. All other non-interest expenses decreased a net $1.9 million on a year-over-year basis due to the insurance agency sale and cost saving initiatives. The core efficiency ratio for the full year 2024 of 61.4% increased from 58.6% in the full year 2023 due to lower revenues partly offset by cost saving initiatives that began during the second quarter of 2023. The ratio of core non-interest expenses to average assets improved to 1.79% for the full year 2024 from 1.87% for the full year 2023.

The 2024 full year results include net loan charge-offs of $4.7 million and a total provision expense of $2.5 million, compared with net loan charge-offs of $4.0 million and a total provision expense of $5.2 million for the same period in 2023. The year-over-year change in provision expense is primarily due to a decrease in loans during the full year 2024 compared to an increase in loans during the full year 2023.

Total assets at $8.58 billion

Total assets at December 31, 2024, were $8.58 billion, compared to $8.73 billion at September 30, 2024, and $8.63 billion at December 31, 2023. Loans receivable were $6.48 billion at December 31, 2024, compared to $6.59 billion at September 30, 2024, and $6.74 billion at December 31, 2023. Securities at December 31, 2024, were $1.16 billion, compared to $1.20 billion at September 30, 2024, and $0.95 billion at December 31, 2023. All securities are either AFS or trading and are reflected at fair value on the balance sheet. Also, at December 31, 2024, goodwill and other intangible assets totaled $304.1 million compared to $304.9 million at September 30, 2024, and $307.8 million at December 31, 2023, with the decreases due to amortization of intangibles.

Total non-brokered deposits at December 31, 2024, were $6.80 billion, compared with $6.86 billion at September 30, 2024, and $6.80 billion at December 31, 2023. Brokered deposits were $54.7 million at December 31, 2024, compared to $287.4 million at September 30, 2024 and $341.9 million at December 31, 2023. FHLB borrowings increased to $507.0 million at December 31, 2024, from $345.0 million at September 30, 2024, and from $280.0 million at December 31, 2023.

Total stockholders’ equity was $1.00 billion at December 31, 2024, compared to $1.02 billion at September 30, 2024, and $0.98 billion at December 31, 2023, with the linked-quarter decrease primarily due to a decrease in accumulated other comprehensive income and the year-over-year increase primarily due to earnings in excess of dividends. Excluding goodwill and intangibles, tangible equity was $697.7 million at December 31, 2024, a decrease from $714.1 million at September 30, 2024, but an increase from $667.8 million at December 31, 2023.

Regulatory ratios all improved during the fourth quarter of 2024, including CET1 of 12.63%, Tier 1 of 13.14% and Total Capital of 15.02%. All of these ratios also exceed well-capitalized guidelines pro forma for including accumulated other comprehensive income (“AOCI”), including CET1 of 10.32%, Tier 1 of 10.84% and Total Capital of 12.72%.

Dividend to be paid February 7

The Board of Directors declared a quarterly cash dividend of $0.31 per common share payable February 7, 2025, to shareholders of record at the close of business on January 31, 2025. The dividend represents an annual dividend yield of 4.93% percent based on the Premier common stock closing price on January 20, 2025. Premier has approximately 35,868,000 common shares outstanding.

About Premier Financial Corp.

Premier Financial Corp. (Nasdaq: PFC), headquartered in Defiance, Ohio, is the holding company for Premier Bank. Premier Bank, headquartered in Youngstown, Ohio, operates 73 branches and 9 loan offices in Ohio, Michigan, Indiana and Pennsylvania and also serves clients through a team of wealth professionals dedicated to each community banking branch. For more information, visit the company’s website at PremierFinCorp.com.

Financial Statements and Highlights Follow-

Safe Harbor Statement

This document may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These statements may include, but are not limited to, statements regarding projections, forecasts, goals and plans of Premier Financial Corp. (“Premier”) and its management, and include statements related to the expected timing, completion and benefits of the proposed merger with WesBanco, Inc. (“WesBanco”) (the ‘Merger”), future movements of interest rates, 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 document 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, including with respect to the Merger. 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. Factors that could cause or contribute to such differences include, but are not limited to, (1) the businesses of Premier and WesBanco may not be integrated successfully or such integration may take longer to accomplish than expected, (2) the expected cost savings and any revenue synergies from the proposed Merger may not be fully realized within the expected timeframes, (3) disruption from the proposed Merger may make it more difficult to maintain relationships with customers, associates, or suppliers, (4) the required governmental approvals of the proposed Merger may not be obtained on the expected terms and schedule, (5) Premier’s shareholders and/or WesBanco’s shareholders may not approve the proposed Merger and the merger agreement, and WesBanco’s shareholders may not approve the issuance of shares of WesBanco common stock in the proposed Merger. Further information regarding additional factors that could affect the forward-looking statements can be found in the cautionary language included under the headings “Cautionary Note Regarding Forward-Looking Statements” (in the case of Premier), “Forward-Looking Statements” (in the case of WesBanco), and “Risk Factors” in Premier’s and WesBanco’s Annual Reports on Form 10-K for the year ended December 31, 2023, and other documents subsequently filed by Premier and WesBanco with the SEC. These risks and uncertainties include 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, 2023 and any further amendments thereto. All forward-looking statements made in this document 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, 2024, consolidated financial statements as part of its Annual Report on Form 10-K if required to be filed with the SEC, including with respect to the Merger. Accordingly, subsequent events could occur that may cause Premier to update its critical accounting estimates and to revise its financial information from that which is contained in this news release.

Non-GAAP Reporting Measures

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

Consolidated Balance Sheets (Unaudited)
Premier Financial Corp.
	December 31,			September 30,			June 30,			March 31,			December 31,
(in thousands)		2024			2024			2024			2024			2023
Assets
Cash and cash equivalents
Cash and amounts due from depositories	$	83,385		$	84,573		$	72,053		$	57,956		$	81,973
Interest-bearing deposits		38,104			40,709			83,598			31,725			32,783
		121,489			125,282			155,651			89,681			114,756
Available-for-sale, carried at fair value		1,157,568			1,196,258			1,081,120			1,014,433			946,708
Equity securities, carried at fair value		4,037			5,970			5,559			5,736			5,773
Securities investments		1,161,605			1,202,228			1,086,679			1,020,169			952,481
Loans (1)		6,476,627			6,588,728			6,682,138			6,693,745			6,739,387
Allowance for credit losses - loans		(75,688	)		(76,142	)		(77,222	)		(76,679	)		(76,512	)
Loans, net		6,400,939			6,512,586			6,604,916			6,617,066			6,662,875
Loans held for sale		117,964			121,611			138,604			137,523			145,641
Mortgage servicing rights		17,196			17,650			18,140			18,628			18,696
Accrued interest receivable		35,514			34,959			35,334			34,795			33,446
Federal Home Loan Bank stock		31,585			24,315			32,189			26,075			21,760
Bank Owned Life Insurance		185,919			184,655			183,409			182,203			181,544
Office properties and equipment		53,683			54,414			55,073			57,231			56,878
Real estate and other assets held for sale		737			326			394			255			243
Goodwill		295,602			295,602			295,602			295,602			295,602
Core deposit and other intangibles		8,487			9,346			10,250			11,196			12,186
Other assets		150,855			146,331			162,452			140,630			129,841
Total Assets	$	8,581,575		$	8,729,305		$	8,778,693		$	8,631,054		$	8,625,949
Liabilities and Stockholders’ Equity
Non-interest-bearing deposits	$	1,475,513		$	1,425,182		$	1,438,764		$	1,467,161		$	1,591,979
Interest-bearing deposits		5,319,598			5,430,061			5,357,112			5,347,444			5,209,123
Brokered deposits		54,688			287,393			382,678			368,782			341,944
Total deposits		6,849,799			7,142,636			7,178,554			7,183,387			7,143,046
Advances from FHLB		507,000			345,000			393,000			253,000			280,000
Subordinated debentures		85,356			85,324			85,292			85,261			85,229
Advance payments by borrowers		16,145			13,358			13,391			16,861			23,277
Reserve for credit losses - unfunded commitments		2,906			3,722			3,343			3,614			4,307
Other liabilities		118,556			120,258			125,984			114,590			114,463
Total Liabilities		7,579,762			7,710,298			7,799,564			7,656,713			7,650,322
Stockholders’ Equity
Preferred stock		-			-			-			-			-
Common stock, net		306			306			306			306			306
Additional paid-in-capital		690,946			690,150			689,743			689,468			690,585
Accumulated other comprehensive income (loss)		(156,818	)		(129,149	)		(163,038	)		(162,081	)		(153,719	)
Retained earnings		596,932			587,269			581,715			576,648			569,937
Treasury stock, at cost		(129,553	)		(129,569	)		(129,597	)		(130,000	)		(131,482	)
Total Stockholders’ Equity		1,001,813			1,019,007			979,129			974,341			975,627
Total Liabilities and Stockholders’ Equity	$	8,581,575		$	8,729,305		$	8,778,693		$	8,631,054		$	8,625,949
(1) Includes PPP loans of:	$	244		$	324		$	369		$	417		$	469

Consolidated Statements of Income (Unaudited)
Premier Financial Corp.
	Three Months Ended																Year Ended
(in thousands, except per share amounts)	12/31/24			9/30/24			6/30/24			3/31/24			12/31/23				12/31/24			12/31/23
Interest Income:
Loans	$	86,083		$	88,942		$	88,560		$	87,597		$	87,924			$	351,182		$	332,208
Investment securities		10,338			9,978			8,666			7,602			7,013				36,583			28,214
Interest-bearing deposits		602			654			638			609			740				2,502			2,478
FHLB stock dividends		665			595			606			534			621				2,401			2,610
Total interest income		97,688			100,169			98,470			96,342			96,298				392,668			365,510
Interest Expense:
Deposits		39,088			45,529			43,927			42,567			39,250				171,111			122,407
FHLB advances		5,192			3,307			4,159			3,039			3,328				15,697			21,479
Subordinated debentures		1,118			1,152			1,159			1,162			1,169				4,591			4,531
Notes Payable		-			-			-			-			-				-			-
Total interest expense		45,398			49,988			49,245			46,768			43,747				191,399			148,417
Net interest income		52,290			50,181			49,225			49,574			52,551				201,269			217,093
Provision (benefit) for credit losses - loans		632			(475	)		3,173			560			2,143				3,890			7,742
Provision (benefit) for credit losses - unfunded commitments		(621	)		185			(271	)		(693	)		(382	)			(1,401	)		(2,508	)
Total provision (benefit) for credit losses		11			(290	)		2,902			(133	)		1,761				2,489			5,234
Net interest income after provision		52,279			50,471			46,323			49,707			50,790				198,780			211,859
Non-interest Income:
Service fees and other charges		7,524			7,756			7,008			6,467			6,761				28,755			27,325
Mortgage banking income		1,771			1,194			2,047			2,350			802				7,362			6,743
Gain (loss) on sale of non-mortgage loans		-			-			-			67			94				67			165
Gain (loss) on sale of available for sale securities		-			-			-			-			10				-			37
Gain (loss) on equity securities		353			410			(176	)		(37	)		665				550			(453	)
Gain on sale of insurance agency		-			-			-			-			-				-			36,296
Insurance commissions		-			-			-			-			-				-			8,856
Wealth management income		1,996			1,878			1,842			1,713			1,791				7,429			6,322
Income from Bank Owned Life Insurance		1,264			1,245			1,207			1,697			1,532				5,413			5,014
Other non-interest income		155			91			150			239			134				635			544
Total non-interest Income		13,063			12,574			12,078			12,496			11,789				50,211			90,849
Non-interest Expense:
Compensation and benefits		19,774			21,794			21,353			23,394			20,963				86,315			92,609
Occupancy		3,472			3,462			3,434			3,365			3,318				13,733			13,358
FDIC insurance premium		1,553			1,200			1,150			1,120			1,383				5,023			5,803
Financial institutions tax		829			1,007			980			1,035			761				3,851			3,563
Data processing		5,111			5,055			5,067			4,670			4,678				19,902			16,191
Amortization of intangibles		859			904			946			990			1,033				3,699			4,604
Other non-interest expense		5,564			5,704			5,228			5,326			5,757				21,822			23,451
Total non-interest operating expenses		37,162			39,126			38,158			39,900			37,893				154,345			159,579
Transaction costs		2,129			2,789			50			-			-				4,969			3,652
Total non-interest expenses		39,291			41,915			38,208			39,900			37,893				159,314			163,231
Income (loss) before income taxes		26,051			21,130			20,193			22,303			24,686				89,677			139,477
Income tax expense (benefit)		5,277			4,465			4,017			4,514			4,616				18,273			28,182
Net income (loss)	$	20,774		$	16,665		$	16,176		$	17,789		$	20,070			$	71,404		$	111,295
Earnings per common share:
Basic	$	0.58		$	0.46		$	0.45		$	0.50		$	0.56			$	1.99		$	3.11
Diluted	$	0.58		$	0.46		$	0.45		$	0.50		$	0.56			$	1.98		$	3.11
Average Shares Outstanding:
Basic		35,687			35,692			35,715			35,772			35,655				35,679			35,693
Diluted		35,782			35,737			35,793			35,771			35,772				35,846			35,781

Premier Financial Corp.
Selected Quarterly Information
	Three Months Ended																Year Ended
(dollars in thousands, except per share data)	12/31/24			9/30/24			6/30/24			3/31/24			12/31/23				12/31/24			12/31/23
Summary of Operations
Tax-equivalent interest income (1)	$	97,781		$	100,243		$	98,542		$	96,417		$	96,340			$	392,982		$	365,777
Interest expense		45,398			49,988			49,245			46,768			43,747				191,399			148,417
Tax-equivalent net interest income (1)		52,383			50,255			49,297			49,649			52,593				201,583			217,360
Provision expense for credit losses		11			(290	)		2,902			(133	)		1,761				2,489			5,234
Non-interest income (ex securities gains/losses)		12,710			12,164			12,254			12,533			11,114				49,661			91,265
Core non-interest income (ex securities gains/losses) (2)		12,710			12,164			12,254			12,533			11,114				49,661			54,969
Non-interest expense		39,291			41,915			38,208			39,900			37,893				159,314			163,231
Core non-interest expense (2)		37,162			39,126			38,158			39,900			37,893				154,345			159,579
Income tax expense (benefit)		5,277			4,465			4,017			4,514			4,616				18,273			28,182
Net income (loss)		20,774			16,665			16,176			17,789			20,070				71,404			111,295
Core net income (2)		22,563			19,289			16,215			17,789			20,070				75,857			87,134
Tax equivalent adjustment (1)		93			74			72			75			42				314			267
At Period End
Total assets	$	8,581,575		$	8,729,305		$	8,778,693		$	8,631,054		$	8,625,949
Goodwill and intangibles		304,089			304,948			305,852			306,798			307,788
Tangible assets (3)		8,277,486			8,424,357			8,472,841			8,324,256			8,318,161
Earning assets		7,750,197			7,901,449			7,945,986			7,832,558			7,815,540
Loans		6,476,627			6,588,728			6,682,138			6,693,745			6,739,387
Allowance for loan losses		75,688			76,142			77,222			76,679			76,512
Deposits		6,849,799			7,142,636			7,178,554			7,183,387			7,143,046
Stockholders’ equity		1,001,813			1,019,007			979,129			974,341			975,627
Stockholders’ equity / assets		11.67	%		11.67	%		11.15	%		11.29	%		11.31	%
Tangible equity (3)		697,724			714,059			673,277			667,543			667,839
Tangible equity / tangible assets		8.43	%		8.48	%		7.95	%		8.02	%		8.03	%
Average Balances
Total assets	$	8,629,348		$	8,696,051		$	8,646,024		$	8,591,947		$	8,536,193			$	8,640,962		$	8,537,730
Earning assets		7,959,457			8,036,417			8,016,157			7,956,887			7,936,648				7,992,261			7,912,651
Loans		6,556,984			6,679,329			6,730,698			6,745,823			6,754,782				6,677,881			6,692,631
Deposits and interest-bearing liabilities		7,474,445			7,556,923			7,533,717			7,476,431			7,447,324				7,510,408			7,464,863
Deposits		6,952,867			7,205,367			7,119,191			7,144,343			7,098,265				7,105,298			6,945,308
Stockholders’ equity		1,013,960			997,845			968,451			974,560			930,835				988,798			923,454
Goodwill and intangibles		304,432			305,380			306,303			307,226			308,243				305,830			322,101
Tangible equity (3)		709,528			692,465			662,148			667,334			622,592				682,968			601,353
Per Common Share Data
Earnings per share ("EPS") - Basic	$	0.58		$	0.46		$	0.45		$	0.50		$	0.56			$	1.99		$	3.11
EPS - Diluted		0.58			0.46			0.45			0.50			0.56				1.98			3.11
EPS - Core diluted (2)		0.63			0.54			0.45			0.50			0.56				2.12			2.44
Dividends Paid		0.31			0.31			0.31			0.31			0.31				1.24			1.24
Market Value:
High	$	29.63		$	26.40		$	21.30		$	24.50		$	24.87			$	29.63		$	27.99
Low		22.50			19.47			18.72			18.68			15.79				18.63			13.60
Close		25.57			23.48			20.46			20.30			24.10				25.57			24.10
Common Book Value		27.95			28.43			27.32			27.20			27.31
Tangible Common Book Value (3)		19.47			19.92			18.79			18.64			18.69
Shares outstanding, end of period (000s)		35,844			35,841			35,840			35,817			35,730
Performance Ratios (annualized)
Tax-equivalent net interest margin (1)		2.63	%		2.50	%		2.46	%		2.50	%		2.65	%			2.52	%		2.75	%
Return on average assets		0.96	%		0.76	%		0.75	%		0.83	%		0.93	%			0.83	%		1.30	%
Core return on average assets (2)		1.04	%		0.88	%		0.75	%		0.83	%		0.93	%			0.88	%		1.02	%
Return on average equity		8.15	%		6.64	%		6.72	%		7.34	%		8.55	%			7.22	%		12.05	%
Core return on average equity (2)		8.85	%		7.69	%		6.73	%		7.34	%		8.55	%			7.67	%		9.44	%
Return on average tangible equity		11.65	%		9.57	%		9.83	%		10.72	%		12.79	%			10.45	%		18.51	%
Core return on average tangible equity (2)		12.65	%		11.08	%		9.85	%		10.72	%		12.79	%			11.11	%		14.49	%
Efficiency ratio (4)		60.36	%		67.15	%		62.08	%		64.17	%		59.48	%			63.41	%		52.89	%
Core efficiency ratio (2)		57.09	%		62.68	%		61.99	%		64.17	%		59.48	%			61.43	%		58.60	%
Non-interest expenses / average assets		1.81	%		1.92	%		1.78	%		1.87	%		1.76	%			1.84	%		1.91	%
Core non-interest expenses / average assets		1.71	%		1.79	%		1.78	%		1.87	%		1.76	%			1.79	%		1.87	%
Effective tax rate		20.26	%		21.13	%		19.89	%		20.24	%		18.70	%			20.38	%		20.21	%
Core effective tax rate		19.93	%		19.36	%		19.90	%		20.24	%		18.70	%			19.85	%		18.44	%
Common dividend payout ratio		53.45	%		67.39	%		68.89	%		62.00	%		55.36	%			62.63	%		39.87	%
Core common dividend payout ratio		49.21	%		57.41	%		68.89	%		62.00	%		55.36	%			58.49	%		50.82	%
(1) Interest income on tax-exempt securities and loans has been adjusted to a tax-equivalent basis using the statutory federal income tax rate of 21%.
(2) Core items exclude the impact of strategic merger and insurance agency disposition related items. See non-GAAP reconciliations.
(3) Tangible assets = total assets less the sum of goodwill and core deposit and other intangibles. Tangible equity = total stockholders' equity less the sum of goodwill, core deposit and other intangibles, and preferred stock. Tangible common book value = tangible equity divided by shares outstanding at the end of the period.
(4) Efficiency ratio = Non-interest expense divided by sum of tax-equivalent net interest income plus non-interest income, excluding securities gains or losses, net.

Premier Financial Corp.
Yield Analysis
(dollars in thousands)	Three Months Ended																Year Ended
	12/31/24			9/30/24			6/30/24			3/31/24			12/31/23				12/31/24			12/31/23
Average Balances
Interest-earning assets:
Loans receivable (1)	$	6,556,984		$	6,679,329		$	6,730,698		$	6,745,823		$	6,754,782			$	6,677,881		$	6,692,631
Securities		1,337,762			1,293,427			1,221,006			1,152,346			1,121,231				1,251,487			1,150,966
Interest Bearing Deposits		33,702			37,197			37,226			34,924			36,761				35,761			36,698
FHLB stock		31,009			26,464			27,227			23,794			23,874				27,132			32,356
Total interest-earning assets		7,959,457			8,036,417			8,016,157			7,956,887			7,936,648		#		7,992,261			7,912,651
Non-interest-earning assets		669,891			659,634			629,867			635,060			599,545		#		648,701			625,079
Total assets	$	8,629,348		$	8,696,051		$	8,646,024		$	8,591,947		$	8,536,193			$	8,640,962		$	8,537,730
Deposits and Interest-bearing Liabilities:
Interest bearing deposits	$	5,477,917		$	5,780,002		$	5,669,033		$	5,650,823		$	5,541,498			$	5,644,359		$	5,328,389
FHLB advances and other		436,239			266,250			329,253			246,846			263,848				319,820			434,389
Subordinated debentures		85,339			85,306			85,273			85,242			85,211				85,290			85,163
Notes payable		-			-			-			-			-				-			3
Total interest-bearing liabilities		5,999,495			6,131,558			6,083,559			5,982,911			5,890,557				6,049,469			5,847,944
Non-interest bearing deposits		1,474,950			1,425,365			1,450,158			1,493,520			1,556,767				1,460,939			1,616,919
Total including non-interest-bearing deposits		7,474,445			7,556,923			7,533,717			7,476,431			7,447,324				7,510,408			7,464,863
Other non-interest-bearing liabilities		140,943			141,283			143,856			140,956			158,034				141,756			149,413
Total liabilities		7,615,388			7,698,206			7,677,573			7,617,387			7,605,358				7,652,164			7,614,276
Stockholders' equity		1,013,960			997,845			968,451			974,560			930,835				988,798			923,454
Total liabilities and stockholders' equity	$	8,629,348		$	8,696,051		$	8,646,024		$	8,591,947		$	8,536,193			$	8,640,962		$	8,537,730
IEAs/IBLs		133	%		131	%		132	%		133	%		135	%			132	%		135	%
Interest Income/Expense
Interest-earning assets:
Loans receivable (2)	$	86,100		$	88,949		$	88,567		$	87,603		$	87,929			$	351,219		$	332,231
Securities (2)		10,414			10,045			8,731			7,671			7,050				36,860			28,458
Interest Bearing Deposits		602			654			638			609			740				2,502			2,478
FHLB stock		665			595			606			534			621				2,401			2,610
Total interest-earning assets		97,781			100,243			98,542			96,417			96,340				392,982			365,777
Deposits and Interest-bearing Liabilities:
Interest bearing deposits	$	39,088		$	45,529		$	43,927		$	42,567		$	39,250			$	171,111		$	122,407
FHLB advances and other		5,192			3,307			4,159			3,039			3,328				15,697			21,479
Subordinated debentures		1,118			1,152			1,159			1,162			1,169				4,591			4,531
Notes payable		-			-			-			-			-				-			-
Total interest-bearing liabilities		45,398			49,988			49,245			46,768			43,747				191,399			148,417
Non-interest bearing deposits		-			-			-			-			-				-			-
Total including non-interest-bearing deposits		45,398			49,988			49,245			46,768			43,747				191,399			148,417
Net interest income	$	52,383		$	50,255		$	49,297		$	49,649		$	52,593			$	201,583		$	217,360
Annualized Average Rates
Interest-earning assets:
Loans receivable		5.25	%		5.33	%		5.26	%		5.19	%		5.21	%			5.26	%		4.96	%
Securities (3)		3.11	%		3.11	%		2.86	%		2.66	%		2.52	%			2.95	%		2.47	%
Interest Bearing Deposits		7.14	%		7.03	%		6.86	%		6.98	%		8.05	%			7.00	%		6.75	%
FHLB stock		8.58	%		8.99	%		8.90	%		8.98	%		10.40	%			8.85	%		8.07	%
Total interest-earning assets		4.91	%		4.99	%		4.92	%		4.85	%		4.86	%			4.92	%		4.62	%
Deposits and Interest-bearing Liabilities:
Interest bearing deposits		2.85	%		3.15	%		3.10	%		3.01	%		2.83	%			3.03	%		2.30	%
FHLB advances and other		4.76	%		4.97	%		5.05	%		4.92	%		5.05	%			4.91	%		4.94	%
Subordinated debentures		5.24	%		5.40	%		5.44	%		5.45	%		5.49	%			5.38	%		5.32	%
Notes payable		-			-			-			-			-				-			0.00	%
Total interest-bearing liabilities		3.03	%		3.26	%		3.24	%		3.13	%		2.97	%			3.16	%		2.54	%
Non-interest bearing deposits		-			-			-			-			-				-			-
Total including non-interest-bearing deposits		2.43	%		2.65	%		2.61	%		2.50	%		2.35	%			2.55	%		1.99	%
Net interest spread		1.88	%		1.73	%		1.68	%		1.72	%		1.89	%			1.76	%		2.08	%
Net interest margin (4)		2.63	%		2.50	%		2.46	%		2.50	%		2.65	%			2.52	%		2.75	%
(1) Includes average PPP loans of:	$	295		$	346		$	394		$	442		$	495			$	369		$	670
(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.

Premier Financial Corp.
Deposits and Liquidity
(dollars in thousands)
	As of and for the Three Months Ended
	12/31/24			9/30/24			6/30/24			3/31/24			12/31/23
Ending Balances
Non-interest-bearing demand deposits	$	1,475,513		$	1,425,182		$	1,438,764		$	1,467,161		$	1,591,979
Savings deposits		612,919			616,910			632,831			656,122			677,679
Interest-bearing demand deposits		526,942			514,886			530,932			553,331			565,757
Money market account deposits		1,498,214			1,460,631			1,437,688			1,426,809			1,374,526
Time deposits		1,016,287			1,061,275			1,052,934			1,051,955			998,002
Public funds, ICS and CDARS deposits		1,665,236			1,776,359			1,702,727			1,659,227			1,593,159
Brokered deposits		54,688			287,393			382,678			368,782			341,944
Total deposits	$	6,849,799		$	7,142,636		$	7,178,554		$	7,183,387		$	7,143,046
Average Balances
Non-interest-bearing demand deposits	$	1,474,950		$	1,425,365		$	1,450,158		$	1,493,520		$	1,556,767
Savings deposits		611,603			625,633			643,523			663,786			691,295
Interest-bearing demand deposits		527,977			522,535			546,496			547,168			557,210
Money market account deposits		1,487,515			1,473,901			1,430,619			1,411,075			1,331,623
Time deposits		1,048,700			1,057,478			1,049,566			1,025,946			959,420
Public funds, ICS and CDARS deposits		1,693,042			1,734,495			1,636,188			1,618,554			1,614,339
Brokered deposits		109,080			365,960			362,641			384,294			387,611
Total deposits	$	6,952,867		$	7,205,367		$	7,119,191		$	7,144,343		$	7,098,265
Average Rates
Non-interest-bearing demand deposits		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Savings deposits		0.15	%		0.10	%		0.03	%		0.03	%		0.03	%
Interest-bearing demand deposits		0.09	%		0.07	%		0.08	%		0.12	%		0.13	%
Money market account deposits		2.80	%		3.00	%		2.94	%		2.83	%		2.65	%
Time deposits		3.84	%		3.90	%		3.80	%		3.55	%		3.15	%
Public funds, ICS and CDARS deposits		3.99	%		4.38	%		4.52	%		4.48	%		4.30	%
Brokered deposits		5.13	%		5.40	%		5.32	%		5.33	%		5.46	%
Total deposits		2.25	%		2.53	%		2.47	%		2.38	%		2.21	%
Other Deposits Data
Loans/Deposits Ratio		94.6	%		92.2	%		93.1	%		93.2	%		94.3	%
Uninsured deposits %		34.7	%		33.4	%		32.5	%		32.6	%		33.1	%
Adjusted uninsured deposits % (1)		19.0	%		17.7	%		17.0	%		17.6	%		18.9	%
Top 20 depositors %		14.7	%		15.1	%		14.4	%		14.0	%		13.9	%
Public funds %		19.4	%		19.6	%		18.9	%		18.5	%		17.9	%
Average account size (excluding brokered)	$	28.0		$	27.8		$	27.5		$	27.0		$	26.9
Securities Data
Held-to-maturity (HTM) at fair value	$	-		$	-		$	-		$	-		$	-
Available-for-sale (AFS) at fair value (2)		1,157,568			1,196,258			1,081,120			1,014,433			946,708
Equity investment at fair value (3)		4,037			5,970			5,559			5,736			5,773
Total securities at fair value	$	1,161,605		$	1,202,228		$	1,086,679		$	1,020,169		$	952,481
Cash+Securities/Assets		15.0	%		15.2	%		14.2	%		12.9	%		12.4	%
Projected AFS cash flow in next 12 months	$	122,801		$	138,984		$	115,609		$	89,563		$	69,067
AFS average life (years)		4.5			4.4			4.9			5.3			6.2
Liquidity Sources
Cash and cash equivalents	$	121,489		$	125,282		$	155,651		$	89,681		$	114,756
Unpledged securities at fair value		565,124			578,810			477,776			398,610			314,385
FHLB borrowing capacity		900,370			1,008,061			1,247,632			1,383,086			1,336,707
Brokered deposits		800,926			582,816			492,359			491,447			513,767
Bank and parent lines of credit		70,000			70,000			70,000			70,000			70,000
Federal Reserve - Discount Window and BTFP (4)		645,265			722,912			702,712			680,456			620,518
Total	$	3,103,174		$	3,087,881		$	3,146,130		$	3,113,280		$	2,970,133
Total liquidity to adjusted uninsured deposits ratio		236.1	%		241.5	%		255.7	%		244.7	%		218.3	%
(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 capacity related to unpledged securities at par value in excess of fair value under Bank Term Funding Program prior to 3/31/24.

Premier Financial Corp.
Loans and Capital
(dollars in thousands)
	12/31/24			9/30/24			6/30/24			3/31/24			12/31/23
Loan Portfolio Composition
Residential real estate	$	1,765,432		$	1,806,389		$	1,805,984		$	1,816,416		$	1,810,265
Residential real estate construction		2,081			3,248			9,649			15,009			28,794
Total residential loans		1,767,513			1,809,637			1,815,633			1,831,425			1,839,059
Commercial real estate		2,895,356			2,853,115			2,844,792			2,830,086			2,839,905
Commercial construction		388,620			486,369			513,652			535,294			528,563
Commercial excluding PPP		957,344			969,493			1,037,718			1,030,620			1,056,334
Core commercial loans (1)		4,241,320			4,308,977			4,396,162			4,396,000			4,424,802
Consumer direct/indirect		179,700			184,574			187,936			187,664			193,830
Home equity and improvement lines		274,340			271,652			268,699			265,362			267,960
Total consumer loans		454,040			456,226			456,635			453,026			461,790
Deferred loan origination fees		13,510			13,564			13,339			12,877			13,267
Core loans (1)		6,476,383			6,588,404			6,681,769			6,693,328			6,738,918
PPP loans		244			324			369			417			469
Total loans	$	6,476,627		$	6,588,728		$	6,682,138		$	6,693,745		$	6,739,387
Loans held for sale	$	117,964		$	121,611		$	138,604		$	137,523		$	145,641
Core residential loans (1)		1,885,477			1,931,248			1,954,237			1,968,948			1,984,700
Total loans including loans held for sale but excluding PPP		6,594,347			6,710,015			6,820,373			6,830,851			6,884,559
Undisbursed construction loan funds - residential	$	52,782		$	53,998		$	52,140		$	57,246		$	72,748
Undisbursed construction loan funds - commercial		153,198			159,805			123,445			151,677			208,718
Undisbursed construction loan funds - total		205,980			213,803			175,585			208,923			281,466
Total construction loans including undisbursed funds	$	596,681		$	703,420		$	698,886		$	759,226		$	838,823
Gross loans (2)	$	6,669,097		$	6,788,967		$	6,844,384		$	6,889,791		$	7,007,586
Fixed rate loans %		48.4	%		48.5	%		48.7	%		49.0	%		49.3	%
Floating rate loans %		18.9	%		18.2	%		16.2	%		16.5	%		15.6	%
Adjustable rate loans repricing within 1 year %		5.6	%		5.2	%		5.2	%		3.4	%		3.4	%
Adjustable rate loans repricing over 1 year %		27.1	%		28.1	%		29.9	%		31.1	%		31.7	%
Commercial Real Estate Loans Composition
Non owner occupied excluding office	$	1,095,933		$	1,061,894		$	1,047,892		$	1,026,598		$	1,027,801
Non owner occupied office		178,778			184,156			186,266			189,436			205,302
Owner occupied excluding office		684,147			666,454			668,327			656,825			653,849
Owner occupied office		101,294			104,792			107,555			112,706			113,679
Multifamily		645,581			645,628			642,469			652,371			642,651
Agriculture land		121,715			120,956			121,597			121,102			121,544
Other commercial real estate		67,908			69,235			70,686			71,048			75,079
Total commercial real estate loans	$	2,895,356		$	2,853,115		$	2,844,792		$	2,830,086		$	2,839,905
Capital Balances
Total equity	$	1,001,813		$	1,019,007		$	979,129		$	974,341		$	975,627
Less: Regulatory goodwill and intangibles		299,007			299,866			300,770			301,716			302,706
Less: Accumulated other comprehensive income/(loss) ("AOCI")		(156,818	)		(129,149	)		(163,038	)		(162,081	)		(153,719	)
Common equity tier 1 capital ("CET1")		859,624			848,290			841,397			834,706			826,640
Add: Tier 1 subordinated debt		35,000			35,000			35,000			35,000			35,000
Tier 1 capital		894,624			883,290			876,397			869,706			861,640
Add: Regulatory allowances		78,352			79,377			80,247			79,827			80,231
Add: Tier 2 subordinated debt		50,000			50,000			50,000			50,000			50,000
Total risk-based capital	$	1,022,976		$	1,012,667		$	1,006,644		$	999,533		$	991,871
Total risk-weighted assets	$	6,808,902		$	6,921,299		$	7,062,328		$	7,013,832		$	7,066,743
Capital Ratios
CET1 Ratio		12.63	%		12.26	%		11.91	%		11.90	%		11.70	%
CET1 Ratio including AOCI		10.32	%		10.39	%		9.61	%		9.59	%		9.52	%
Tier 1 Capital Ratio		13.14	%		12.76	%		12.41	%		12.40	%		12.19	%
Tier 1 Capital Ratio including AOCI		10.84	%		10.90	%		10.10	%		10.09	%		10.02	%
Total Capital Ratio		15.02	%		14.63	%		14.25	%		14.25	%		14.04	%
Total Capital Ratio including AOCI		12.72	%		12.77	%		11.95	%		11.94	%		11.86	%
(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, 2024
One to four family residential real estate	$	1,765,432	$	1,736,049	$	11,982	0.68	%	$	17,401	0.99	%
Construction		596,681		595,510		-	0.00	%		1,171	0.20	%
Commercial real estate		2,895,356		2,875,671		664	0.02	%		19,021	0.66	%
Commercial		957,588		920,075		425	0.04	%		37,088	3.87	%
Home equity and improvement		274,340		268,995		3,499	1.28	%		1,846	0.67	%
Consumer finance		179,700		170,604		4,628	2.58	%		4,468	2.49	%
Gross loans	$	6,669,097	$	6,566,904	$	21,198	0.32	%	$	80,995	1.21	%
September 30, 2024
One to four family residential real estate	$	1,806,389	$	1,782,110	$	8,291	0.46	%	$	15,988	0.89	%
Construction		703,420		701,930		290	0.04	%		1,200	0.17	%
Commercial real estate		2,853,115		2,832,985		381	0.01	%		19,749	0.69	%
Commercial		969,817		929,270		1,428	0.15	%		39,119	4.03	%
Home equity and improvement		271,652		267,518		2,392	0.88	%		1,742	0.64	%
Consumer finance		184,574		176,034		4,374	2.37	%		4,166	2.26	%
Gross loans	$	6,788,967	$	6,689,847	$	17,156	0.25	%	$	81,964	1.21	%
December 31, 2023
One to four family residential real estate	$	1,810,265	$	1,785,935	$	9,429	0.52	%	$	14,901	0.82	%
Construction		838,823		838,715		108	0.01	%		-	0.00	%
Commercial real estate		2,839,905		2,833,233		475	0.02	%		6,197	0.22	%
Commercial		1,056,803		1,045,185		2,623	0.25	%		8,995	0.85	%
Home equity and improvement		267,960		263,134		2,887	1.08	%		1,939	0.72	%
Consumer finance		193,830		185,041		5,330	2.75	%		3,459	1.78	%
Gross loans	$	7,007,586	$	6,951,243	$	20,852	0.30	%	$	35,491	0.51	%
Loan Risk Ratings Information
(dollars in thousands)	Total Balance		Pass Rated		Special Mention		% of Total		Classified		% of Total
December 31, 2024
One to four family residential real estate	$	1,756,537	$	1,737,804	$	1,294	0.07	%	$	17,439	0.99	%
Construction		596,681		575,705		19,805	3.32	%		1,171	0.20	%
Commercial real estate		2,893,728		2,783,390		59,179	2.05	%		51,159	1.77	%
Commercial		955,630		850,270		53,325	5.58	%		52,035	5.45	%
Home equity and improvement		273,078		271,376		-	0.00	%		1,702	0.62	%
Consumer finance		179,601		175,155		-	0.00	%		4,446	2.48	%
PCD loans		13,842		12,103		394	2.85	%		1,345	9.72	%
Gross loans	$	6,669,097	$	6,405,803	$	133,997	2.01	%	$	129,297	1.94	%
September 30, 2024
One to four family residential real estate	$	1,797,355	$	1,780,621	$	886	0.05	%	$	15,848	0.88	%
Construction		703,420		683,741		19,679	2.80	%		-	0.00	%
Commercial real estate		2,851,403		2,750,149		48,571	1.70	%		52,683	1.85	%
Commercial		967,733		867,738		55,870	5.77	%		44,125	4.56	%
Home equity and improvement		270,330		268,887		-	0.00	%		1,443	0.53	%
Consumer finance		184,466		180,317		-	0.00	%		4,149	2.25	%
PCD loans		14,260		11,859		403	2.83	%		1,998	14.01	%
Gross loans	$	6,788,967	$	6,543,312	$	125,409	1.85	%	$	120,246	1.77	%
December 31, 2023
One to four family residential real estate	$	1,800,383	$	1,785,839	$	594	0.03	%	$	13,950	0.77	%
Construction		838,823		831,333		7,490	0.89	%		-	0.00	%
Commercial real estate		2,837,865		2,760,804		50,784	1.79	%		26,277	0.93	%
Commercial		1,054,834		975,264		57,634	5.46	%		21,936	2.08	%
Home equity and improvement		266,082		264,664		-	0.00	%		1,418	0.53	%
Consumer finance		193,626		190,393		-	0.00	%		3,233	1.67	%
PCD loans		15,973		12,899		197	1.23	%		2,877	18.01	%
Gross loans	$	7,007,586	$	6,821,196	$	116,699	1.67	%	$	69,691	0.99	%

Premier Financial Corp.
Mortgage and Credit Information
(dollars in thousands)
	As of and for the Three Months Ended																Year Ended
Mortgage Banking Summary	12/31/24			9/30/24			6/30/24			3/31/24			12/31/23				12/31/24			12/31/23
Revenue from sales and servicing of mortgage loans:
Mortgage banking gains, net	$	1,203		$	691		$	1,378		$	1,283		$	439			$	4,555		$	4,429
Mortgage loan servicing revenue (expense):
Mortgage loan servicing revenue		1,830			1,839			1,835			1,842			1,844				7,346			7,427
Amortization of mortgage servicing rights		(1,378	)		(1,320	)		(1,313	)		(1,238	)		(1,257	)			(5,249	)		(5,044	)
Mortgage servicing rights valuation adjustments		116			(16	)		147			463			(224	)			710			(69	)
		568			503			669			1,067			363				2,807			2,314
Total revenue from sale/servicing of mortgage loans	$	1,771		$	1,194		$	2,047		$	2,350		$	802			$	7,362		$	6,743
Mortgage servicing rights:
Balance at beginning of period	$	17,812		$	18,286		$	18,921		$	19,452		$	20,174			$	19,452		$	21,858
Loans sold, servicing retained		808			846			678			707			535				3,039			2,638
Amortization		(1,378	)		(1,320	)		(1,313	)		(1,238	)		(1,257	)			(5,249	)		(5,044	)
Balance at end of period		17,242			17,812			18,286			18,921			19,452				17,242			19,452
Valuation allowance:
Balance at beginning of period		(162	)		(146	)		(293	)		(756	)		(532	)			(756	)		(687	)
Impairment recovery (charges)		116			(16	)		147			463			(224	)			710			(69	)
Balance at end of period		(46	)		(162	)		(146	)		(293	)		(756	)			(46	)		(756	)
Net carrying value at end of period	$	17,196		$	17,650		$	18,140		$	18,628		$	18,696			$	17,196		$	18,696
Allowance for credit losses - loans
Beginning allowance	$	76,142		$	77,222		$	76,679		$	76,512		$	76,513			$	76,512		$	72,816
Provision (benefit) for credit losses - loans		632			(475	)		3,173			560			2,143				3,890			7,742
Net recoveries (charge-offs)		(1,086	)		(605	)		(2,630	)		(393	)		(2,144	)			(4,714	)		(4,046	)
Ending allowance	$	75,688		$	76,142		$	77,222		$	76,679		$	76,512			$	75,688		$	76,512
Total loans	$	6,476,627		$	6,588,728		$	6,682,138		$	6,693,745		$	6,739,387
Less: PPP loans		(244	)		(324	)		(369	)		(417	)		(469	)
Total loans ex PPP	$	6,476,383		$	6,588,404		$	6,681,769		$	6,693,328		$	6,738,918
Allowance for credit losses (ACL)	$	75,688		$	76,142		$	77,222		$	76,679		$	76,512
Add: Unaccreted purchase accounting marks		339			500			575			889			1,160
Adjusted ACL	$	76,027		$	76,642		$	77,797		$	77,568		$	77,672
ACL/Loans		1.17	%		1.16	%		1.16	%		1.15	%		1.14	%
Adjusted ACL/Loans ex PPP		1.17	%		1.16	%		1.16	%		1.16	%		1.15	%
Credit Quality
Total non-performing loans (1)	$	80,995		$	81,964		$	64,158		$	39,031		$	35,491
Real estate owned (REO)		737			326			394			255			243
Total non-performing assets (2)	$	81,732		$	82,290		$	64,552		$	39,286		$	35,734
Net charge-offs (recoveries)		1,086			605			2,630			393			2,144
Allowance for credit losses / non-performing assets		92.61	%		92.53	%		119.63	%		195.18	%		214.12	%
Allowance for credit losses / non-performing loans		93.45	%		92.90	%		120.36	%		196.46	%		215.58	%
Non-performing assets / loans plus REO		1.26	%		1.25	%		0.97	%		0.59	%		0.53	%
Non-performing assets / total assets		0.95	%		0.94	%		0.74	%		0.46	%		0.41	%
Net charge-offs (recoveries) / average loans		0.07	%		0.04	%		0.16	%		0.02	%		0.13	%
Net charge-offs (recoveries) / average loans LTM		0.10	%		0.09	%		0.07	%		0.03	%		0.06	%
(1) Non-performing loans consist of non-accrual loans.
(2) Non-performing assets are non-performing loans plus real estate and other assets acquired by foreclosure or deed-in-lieu thereof.

Premier Financial Corp.
Non-GAAP Reconciliations	Three Months Ended																Year Ended
(In thousands, except per share and ratio data)	12/31/24			9/30/24			6/30/24			3/31/24			12/31/23				12/31/24			12/31/23
Total non-interest expenses	$	39,291		$	41,915		$	38,208		$	39,900		$	37,893			$	159,314		$	163,231
Less: Transaction costs (pre-tax)(1)		2,129			2,789			50			-			-				4,969			3,652
Core non-interest expenses	$	37,162		$	39,126		$	38,158		$	39,900		$	37,893			$	154,345		$	159,579
Average total assets	$	8,629,348		$	8,696,051		$	8,646,024		$	8,591,947		$	8,536,193			$	8,640,962		$	8,537,730
Core non-interest expenses / average assets		1.71	%		1.79	%		1.78	%		1.87	%		1.76	%			1.79	%		1.87	%
Core non-interest expenses	$	37,162		$	39,126		$	38,158		$	39,900		$	37,893			$	154,345		$	159,579
Less: Insurance agency expenses		-			-			-			-			-				-			6,425
Core non-interest expenses excluding insurance agency	$	37,162		$	39,126		$	38,158		$	39,900		$	37,893		#	$	154,345		$	153,154
Non-interest income	$	13,063		$	12,574		$	12,078		$	12,496		$	11,789			$	50,211		$	90,849
Less: Gain on sale of insurance agency (pre-tax)		-			-			-			-			-				-			36,296
Core non-interest income	$	13,063		$	12,574		$	12,078		$	12,496		$	11,789			$	50,211		$	54,553
Less: Securities gains (losses)		353			410			(176	)		(37	)		675				550			(416	)
Core non-interest income (ex securities gains/losses)	$	12,710		$	12,164		$	12,254		$	12,533		$	11,114			$	49,661		$	54,969
Tax-equivalent net interest income	$	52,383		$	50,255		$	49,297		$	49,649		$	52,593			$	201,583		$	217,360
Core non-interest income (ex securities gains/losses)		12,710			12,164			12,254			12,533			11,114				49,661			54,969
Total core revenues		65,093			62,419			61,551			62,182			63,707				251,244			272,329
Core non-interest expenses	$	37,162		$	39,126		$	38,158		$	39,900		$	37,893			$	154,345		$	159,579
Core efficiency ratio		57.09	%		62.68	%		61.99	%		64.17	%		59.48	%			61.43	%		58.60	%
Income (loss) before income taxes	$	26,051		$	21,130		$	20,193		$	22,303		$	24,686			$	89,677		$	139,477
Add: Provision (benefit) for credit losses		11			(290	)		2,902			(133	)		1,761				2,489			5,234
Pre-tax pre-provision income		26,062			20,840			23,095			22,170			26,447				92,166			144,711
Add: Transaction costs (pre-tax)		2,129			2,789			50			-			-				4,969			3,652
Less: Gain on sale of insurance agency (pre-tax)		-			-			-			-			-				-			36,296
Core pre-tax pre-provision income	$	28,191		$	23,629		$	23,145		$	22,170		$	26,447			$	97,135		$	112,067
Average total assets	$	8,629,348		$	8,696,051		$	8,646,024		$	8,591,947		$	8,536,193			$	8,640,962		$	8,537,730
Core pre-tax pre-provision return on average assets		1.30	%		1.08	%		1.08	%		1.04	%		1.23	%			1.12	%		1.31	%
Net income (loss)	$	20,774		$	16,665		$	16,176		$	17,789		$	20,070			$	71,404		$	111,295
Less: Gain on sale of insurance agency (pre-tax)		-			-			-			-			-				-			36,296
Add: Transaction costs (pre-tax)		2,129			2,789			50			-			-				4,969			3,652
Add: Tax impact of above items		(340	)		(165	)		(11	)		-			-				(516	)		8,483
Core net income	$	22,563		$	19,289		$	16,215		$	17,789		$	20,070			$	75,857		$	87,134
Diluted shares - Reported		35,782			35,737			35,793			35,771			35,772				35,846			35,781
Core diluted EPS	$	0.63		$	0.54		$	0.45		$	0.50		$	0.56			$	2.12		$	2.44
Average total assets	$	8,629,348		$	8,696,051		$	8,646,024		$	8,591,947		$	8,536,193			$	8,640,962		$	8,537,730
Core return on average assets		1.04	%		0.88	%		0.75	%		0.83	%		0.93	%			0.88	%		1.02	%
Average total equity	$	1,013,960		$	997,845		$	968,451		$	974,560		$	930,835			$	988,798		$	923,454
Core return on average equity		8.85	%		7.69	%		6.73	%		7.34	%		8.55	%			7.67	%		9.44	%
Average total tangible equity	$	709,528		$	692,465		$	662,148		$	667,334		$	622,592			$	682,968		$	601,353
Core return on average tangible equity		12.65	%		11.08	%		9.85	%		10.72	%		12.79	%			11.11	%		14.49	%
(1) Transaction costs for 2024 relate to the strategic merger transaction. Transaction costs for 2023 relate to the insurance agency sale.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250121262571/en/

Paul Nungester

EVP and CFO

419.785.8700

PNungester@yourpremierbank.com

Source: Premier Financial Corp.

FAQ

What are the terms of Premier Financial's merger with Wesbanco?

PFC shareholders will receive 0.80 shares of WSBC common stock for each PFC share, and will own approximately 30% of the combined company upon closing. The merger has received shareholder approval and is pending regulatory approvals.

How did Premier Financial's Q4 2024 earnings compare to Q4 2023?

PFC's Q4 2024 net income was $20.8 million ($0.58 per share), compared to $20.1 million ($0.56 per share) in Q4 2023. Excluding merger costs, Q4 2024 earnings were $22.6 million ($0.63 per share).

What is Premier Financial's latest quarterly dividend?

PFC declared a quarterly cash dividend of $0.31 per share, payable February 7, 2025, representing an annual dividend yield of 4.93% based on the January 20, 2025 closing price.

How did PFC's asset quality metrics change in Q4 2024?

Non-performing assets were $81.7 million (0.95% of assets) at December 31, 2024, up from $35.7 million year-over-year. Criticized loans increased to $263.3 million from $186.4 million year-over-year.