Premier Financial Corp. Announces Solid Third Quarter Results Including Core Loan Growth and Net Interest Margin Expansion

Rhea-AI Summary

Premier Financial Corp. (Nasdaq: PFC) reported a net income of $28.4 million in Q3 2021, up 10.5% from the previous year. Earnings per share increased to $0.76. Excluding PPP loans, loan growth was 5.1%, fueled by strong commercial activity. Net interest income rose to $57.0 million, while the net interest margin improved to 3.38%. Non-interest income decreased to $18.3 million, influenced by a decline in mortgage banking. The company also announced a 27% increase in dividend to $0.28 per share.

Positive

• Net income increased to $28.4 million, a 10.5% rise from Q3 2020.
• Earnings per share rose to $0.76, up 10.1% from the previous year.
• Loan growth of $64.4 million, or 5.1% annualized, excluding PPP.
• Net interest income up to $57.0 million from $53.3 million a year prior.
• Dividend increased by 27% to $0.28 per share.

Negative

• Non-interest income decreased to $18.3 million from $25.0 million in Q3 2020 due to lower mortgage banking income.
• Non-performing assets rose to $60.1 million, up from $41.3 million in the previous quarter.

Third Quarter 2021 Highlights

• Net income of $28.4 million, up $2.7 million (10.5%) from 2020 third quarter
• Earnings per share of $0.76, up $0.07 (10.1%) from 2020 third quarter
• Loan growth of $64.4 million excluding PPP (up 5.1% annualized) including $37.2 million for commercial loans (up 4.4% annualized) during 2021 third quarter
• Net interest margin of 3.38% or 3.27% excluding PPP and marks, up 4 and 7 basis points respectively, from second quarter 2021
• Average deposit costs down 3 basis points to 0.20% from second quarter 2021
• Allowance to loans ratio of 1.39%, or 1.43% excluding PPP loans, for 2021 third quarter
• Service fee income of $6.1 million, up $1.3 million (26.3%) from 2020 third quarter
• Pre-tax pre-provision ROAA of 1.91% for 2021 third quarter
• ROA, ROE and ROTE of 1.49%, 11.03% and 16.65% for 2021 third quarter
• Increased dividend $0.01 to $0.28 per share, up 27% year to date

DEFIANCE, Ohio--(BUSINESS WIRE)-- Premier Financial Corp. (Nasdaq: PFC) (“Premier” or the “Company”) today announced 2021 third quarter results. Net income for the third quarter of 2021 was $28.4 million, or $0.76 per diluted common share, compared to $25.7 million, or $0.69 per diluted common share, for the third quarter of 2020. The prior year’s results include the impact of $3.7 million of acquisition-related charges for the three months ended September 30, 2020, which had an after-tax cost of $2.9 million or $0.08 per diluted common share. Net income for the nine months ended September 30, 2021, was $100.7 million, or $2.70 per diluted common share, compared to $32.2 million, or $0.91 per diluted common share, for the nine months ended September 30, 2020. The nine-month year-over-year comparison is substantially impacted by the acquisition of United Community Financial Corp. (“UCFC”) on January 31, 2020, with the prior year’s provision expense of $51.0 million that included $25.9 million related to acquisition accounting for an after-tax cost of $20.5 million, or $0.58 per diluted common share. The nine months of 2021 included a provision recovery of $9.1 million, which had an after-tax benefit of $7.2 million, or $0.19 per diluted common share, and no acquisition impact. Additionally, the prior year’s nine-month results include the impact of $17.3 million of acquisition-related charges, which had an after-tax cost of $14.0 million, or $0.39 per diluted common share. Excluding the impact of the acquisition-related provision and charges, earnings for the first nine months of 2020 were $66.8 million, or $1.88 per diluted common share.

“We are very pleased to report our second consecutive quarter of strong loan growth at 5.1% annualized,” said Gary Small, President and CEO of Premier. “Core commercial, residential mortgage, and consumer each contributed over 4.4% for the period. Commercial and consumer new business pipelines are at their highest level for the year with businesses expressing labor constraints as more of a concern than supply chain challenges at this point. Household deposits remain elevated and consumer loan delinquency continues to track at all-time lows. Clients are well positioned as we head into the upcoming holiday season.”

Business client support efforts

As a part of the CARES Act, the Small Business Administration created the Paycheck Protection Program (“PPP”) to provide small businesses with loans as a direct incentive to keep their workers on the payroll. Premier Bank actively participated in PPP for clients and made 2,880 loans for a total of $443.3 million during the year ended December 31, 2020. Total gross fees for these loans equaled $14.8 million. To date, Premier Bank has recognized $14.7 million as loan interest income, including $0.9 million and $8.5 million during the three and nine months ended September 30, 2021, respectively. Additionally, a total of $433.3 million in loans have been extinguished to date, including $83.7 million and $376.9 million during the three and nine months ended September 30, 2021, respectively.

Beginning in January 2021, Premier Bank participated in the second round of PPP lending and made 2,231 loans for a total of $193.6 million during the nine months ended September 30, 2021. Total gross fees for these loans were $7.8 million and Premier Bank has recognized $2.7 million and $3.2 million in loan interest income during the three and nine months ended September 30, 2021, respectively. Additionally, a total of $59.6 million in loans have been extinguished to date, all during the three months ended September 30, 2021. Total PPP loans were $143.9 million at September 30, 2021.

Net interest income up compared to third quarter of 2020

Net interest income of $57.0 million in the third quarter of 2021 was up from $53.3 million in the third quarter of 2020. The increase over the prior year’s third quarter was attributable to growth in interest-earning assets, PPP fees and a 23 basis point decrease in average costs of funds. Net interest margin was 3.38% for the third quarter of 2021, up from 3.34% in the second quarter of 2021, but down from 3.45% in the third quarter of 2020. Yield on interest earning assets increased to 3.61% in the third quarter of 2021, up 2 basis points from 3.59% in the second quarter of 2021. The improvement from second quarter to third quarter was primarily due to $64.4 million of non-PPP loan growth (5.1% annualized). Total cost of funds decreased 2 basis points in the third quarter of 2021 to 0.24% from the second quarter of 2021, while the total cost of interest-bearing liabilities decreased 4 basis points to 0.32%. The 2021 third quarter results include the impact of acquisition marks and related accretion for the UCFC acquisition. Interest income includes $0.6 million of accretion and interest expense includes $0.3 million of accretion, which combined added 5 basis points of net interest margin. The third quarter results also include the impact of PPP loans. Interest income includes $2.9 million on average balances of $219.4 million, which increased net interest margin by 6 basis points. Excluding the impact of acquisition marks and PPP loans, net interest margin would be 3.27% for the third quarter of 2021 compared to 3.20% for the second quarter of 2021 and 3.41% for the third quarter of 2020.

“Net interest margin stabilized during the quarter with 3.27% core margin reflecting a 7 basis point improvement versus second quarter,” said Small. “We made progress on all fronts during the quarter with lower cost of funds, lower cost of interest bearing deposits, and higher yields. While some additional improvement in funding costs may contribute to net interest margin growth in the near term, our loan portfolio growth and efficient management of the securities portfolio will drive our net interest income performance longer term.”

Non-interest income down from third quarter of 2020

Premier’s non-interest income in the third quarter of 2021 was $18.3 million compared with $25.0 million in the third quarter of 2020. Total mortgage banking income decreased to $6.2 million in the third quarter of 2021 from $12.0 million in the third quarter of 2020. Mortgage gains decreased to $5.4 million in the third quarter of 2021 from $13.8 million in the third quarter of 2020 but increased from $2.7 million in the second quarter of 2021. Total mortgage loan production has been consistently strong compared to prior year, while gains have declined primarily due to compressed margins and less favorable marks on the in-process portfolio. The increase from the prior quarter was primarily due to the expected improvement in saleable mix. Mortgage loan servicing revenue of $1.9 million in the third quarter of 2021 was consistent with $1.9 million in the third quarter of 2020. Amortization of mortgage servicing rights decreased to $1.8 million in the third quarter of 2021 from $2.0 million in the third quarter of 2020. Premier also had a positive change in the valuation adjustment for mortgage servicing assets of $0.8 million in the third quarter of 2021 compared with a negative adjustment of $1.7 million in the third quarter of 2020. This item closely follows the trend in USTN-10, which increased 7 basis points during the quarter to 1.52% at September 30, 2021.

For the third quarter of 2021, service fees and other charges were $6.1 million, up 26% from $4.8 million in the third quarter of 2020 primarily due to higher ATM and interchange related fees. This was mostly offset by a combined $1.0 million decrease in wealth management, insurance commissions and other income. Securities gains were $0.3 million in the third quarter of 2021 compared to a gain of $1.5 million in the third quarter of 2020, which included $1.4 million from a transaction completed to offset a $1.4 million FHLB prepayment penalty in other expenses noted below. BOLI income increased $0.1 million from the third quarter of 2020 primarily due to a $20 million premium purchase during the third quarter of 2021.

“Residential mortgage fee income returned to more typical levels in the third quarter and brought our year to date performance in line with our expectations for the year,” said Small. “Mortgage origination activity remained strong for the quarter with a better mix of salable production.”

Core non-interest expenses up from third quarter of 2020

Total non-interest expense was $39.0 million in the third quarter of 2021, down from $43.6 million in the third quarter of 2020, but up from $38.4 million excluding $3.7 million of acquisition related charges and $1.4 million FHLB prepayment penalty. Compensation and benefits increased to $23.4 million in the third quarter of 2021, compared to $20.2 million in the third quarter of 2020. Occupancy expense was $3.7 million in the third quarter of 2021, down from $4.0 million in the third quarter of 2020. Data processing cost was $3.4 million in the third quarter of 2021, down from $4.3 million in the third quarter of 2020. Amortization of intangibles was $1.5 million in the third quarter of 2021, down from $1.7 million in the third quarter of 2020. Other non-interest expense was $5.2 million in the third quarter of 2021, down from $7.1 million in the third quarter of 2020, or down from $5.7 million excluding $1.4 million of prepayment penalties from the early extinguishment of $30 million of fixed rate FHLB advances that had a weighted average rate of 2.0%.

Credit quality

Non-performing assets totaled $60.1 million, or 0.81% of assets, at September 30, 2021, an increase from $41.3 million at June 30, 2021, and an increase from $48.3 million at September 30, 2020. The increase during the third quarter was primarily due to a single commercial credit relationship. Accruing troubled debt restructured loans were $6.5 million at September 30, 2021, compared with $8.5 million at September 30, 2020. Loan delinquencies increased to $11.2 million, or 0.2% of loans, at September 30, 2021, from $9.9 million at June 30, 2021, but decreased from $20.9 million at September 30, 2020.

The 2021 third quarter results include net loan recoveries of $0.3 million and a total provision expense of $1.8 million compared with net loan charge-offs of $3.3 million and a total provision expense of $2.8 million for the same period in 2020. The allowance for credit losses on loans as a percentage of total loans was 1.39% at September 30, 2021, or 1.43% excluding PPP loans, compared with 1.33% at June 30, 2021, or 1.37% excluding PPP loans, and 1.63%, or 1.77% excluding PPP loans, at September 30, 2020. The continued economic improvement after the 2020 pandemic-related downturn led to the year-over-year decrease in the provision expense and allowance percentages. As of September 30, 2021, Premier Bank had no pandemic-related deferrals, down from one retail loan for $13,000 at June 30, 2021.

“The increase in provision expense and allowance percentages from the prior quarter was primarily due to the establishment of a specific reserve for a single non-performing commercial credit, partially offset by improvements in the remainder of the portfolio,” said Paul Nungester, CFO of Premier. “We are comfortable with an all-in reserve coverage level of 1.57% excluding PPP loans and including unamortized purchase accounting marks.”

Year to date results

For the nine-month period ended September 30, 2021, net income totaled $100.7 million, or $2.70 per diluted common share, compared to $32.2 million, or $0.91 per diluted common share for the nine months ended September 30, 2020. Results for the 2020 period included eight months of income and expenses from UCFC compared to nine months in 2021. The year-over-year comparison is also substantially impacted by the prior year’s provision expense of $49.3 million, which included $25.9 million related to acquisition accounting for an after-tax cost of $20.5 million, or $0.58 per diluted common share. The 2021 period included a provision credit of $9.1 million, which had an after-tax benefit of $7.2 million, or $0.19 per diluted common share, and no acquisition impact. Additionally, the prior year’s results include the impact of $17.3 million of acquisition-related charges, which had an after-tax cost of $14.0 million, or $0.39 per diluted common share. Excluding the impact of acquisition-related provision and charges, earnings for the first nine months of 2020 were $66.8 million, or $1.88 per diluted common share.

Net interest income was $170.2 million for the first nine months of 2021 compared with $153.0 million in the first nine months of 2020. Average interest-earning assets increased to $6.7 billion in the first nine months of 2021 compared to $5.8 billion in the first nine months of 2020. Net interest margin for the first nine months of 2021 was 3.39%, down 15 basis points from the 3.54% margin reported in the nine-month period ended September 30, 2020. Results include the impact of acquisition marks and related accretion for the UCFC acquisition. For the first nine months of 2021, interest income includes $3.2 million of accretion and interest expense includes $1.0 million of accretion, which combined added 9 basis points of net interest margin. The results in the first nine months of 2021 also include the impact of PPP loans. Interest income includes $11.9 million on average balances of $343.7 million, which increased net interest margin by 7 basis points. Excluding the impact of acquisition marks and PPP loans, net interest margin was 3.23% for the first nine months of 2021 compared to 3.44% for the first nine months of 2020.

Non-interest income for the first nine months of 2021 was $62.1 million compared to $62.0 million during the same period of 2020. Service fees and other charges were $17.8 million for the first nine months of 2021, up from $15.6 million during the same period of 2020. Mortgage banking income was $18.9 million for the first nine months of 2021, down from $22.8 million during the same period of 2020. Insurance commissions were $12.4 million for the first nine months of 2021 compared with $12.9 million for the same period of 2020. Wealth management income was $4.6 million for the first nine months of 2021, up from $4.4 million during the same period of 2020. Securities gains were $3.0 million for the first nine months of 2021 compared to $1.5 million for the same period in 2020. Approximately $2.2 million of the 2021 gain was related to the sale of securities where the Company took advantage of pricing to realize gains and reinvested in a mix of new securities that will generate the higher income over the next three years. The other $0.8 million was related to unrealized gains on our trading securities due to the improved market for these financial institution equities. BOLI income increased to $3.0 million in the first nine months of 2021, including $0.3 million of claim gains, compared to $2.5 million and no claim gains in the first nine months of 2020. Other non-interest income for the first nine months of 2021 was $2.4 million compared to $2.3 million in 2020.

Non-interest expense was $116.2 million for the first nine months of 2021 compared to $123.9 million, or $105.2 million excluding acquisition-related charges and FHLB prepayment penalties, for the same period of 2020. Compensation and benefits expense was $66.4 million for the first nine months of 2021 compared with $57.3 million during the same period of 2020. Expenses also included net decreases of $1.1 million for occupancy, FDIC insurance premiums, financial institution taxes, data processing and amortization of intangibles and an increase of $1.7 million for other expenses.

Total assets at $7.47 billion

Total assets at September 30, 2021, were $7.47 billion compared to $7.59 billion at June 30, 2021, and $6.97 billion at September 30, 2020. Gross loans receivable (including loans held for sale) were $5.45 billion at September 30, 2021, compared to $5.55 billion at June 30, 2021, and $5.68 billion at September 30, 2020. At September 30, 2021, gross loans receivable decreased $230.5 million from a year ago due to a $299.3 million decrease in PPP loans. Excluding PPP, loans grew $68.8 million organically, or 1.3% from a year ago. Commercial loans excluding PPP increased $88.2 million from September 30, 2020, to 2021, or 2.6%, despite a $23.3 million decrease in lines of credit. Securities at September 30, 2021, were $1.26 billion compared to $1.29 billion at June 30, 2021, and $579.2 million at September 30, 2020. Also, at September 30, 2021, goodwill and other intangible assets totaled $343.6 million compared to $345.1 million at June 30, 2021, and $350.0 million at September 30, 2020, with the decrease attributable to intangibles amortization.

Total deposits at September 30, 2021, were $6.25 billion compared with $6.29 billion at June 30, 2021, and $5.80 billion at September 30, 2020. At September 30, 2021, total deposits grew $452.9 million organically, or 7.8% from a year ago.

Total stockholders’ equity was $1.03 billion at September 30, 2021, compared to $1.03 billion at June 30, 2021, and $959.0 million at September 30, 2020. The increase in stockholders’ equity from the prior year was primarily due to net earnings. The Company also completed the repurchase of 206,285 common shares for $6.0 million during the third quarter of 2021. At September 30, 2021, 1,628,149 common shares remained available for repurchase under the Company’s existing authorization.

Dividend to be paid November 19

The Board of Directors declared a quarterly cash dividend of $0.28 per common share payable November 19, 2021, to shareholders of record at the close of business on November 12, 2021. The dividend represents an annual dividend of 3.44 percent based on the Premier common stock closing price on October 27, 2021. Premier has approximately 36,978,000 common shares outstanding.

Conference call

Premier will host a conference call at 11:00 a.m. ET on Friday, October 29, 2021, to discuss the earnings results and business trends. The conference call may be accessed by calling 1-877-444-1726. Internet access to the call is also available (in listen-only mode) at the following URL: https://services.choruscall.com/links/pfc211029.html. The replay of the conference call will be available at www.PremierFinCorp.com for one year.

About Premier Financial Corp.

Premier Financial Corp. (Nasdaq: PFC), headquartered in Defiance, Ohio, is the holding company for Premier Bank and First Insurance Group. Premier Bank, headquartered in Youngstown, Ohio, operates 75 branches and 12 loan offices in Ohio, Michigan, Indiana, Pennsylvania and West Virginia (West Virginia office operates as Home Savings Bank) and serves clients through a team of wealth professionals dedicated to each community banking branch. First Insurance Group is a full-service insurance agency with ten offices in Ohio. For more information, visit the company’s website at PremierFinCorp.com.

Financial Statements and Highlights Follow-

Safe Harbor Statement

This document may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These statements may include, but are not limited to, statements regarding projections, forecasts, goals and plans of Premier Financial Corp. and its management, future movements of interests, loan or deposit production levels, future credit quality ratios, future strength in the market area, and growth projections. These statements do not describe historical or current facts and may be identified by words such as “intend,” “intent,” “believe,” “expect,” “estimate,” “target,” “plan,” “anticipate,” or similar words or phrases, or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “may,” “can,” or similar verbs. There can be no assurances that the forward-looking statements included in this presentation will prove to be accurate. In light of the significant uncertainties in the forward-looking statements, the inclusion of such information should not be regarded as a representation by Premier or any other persons, that our objectives and plans will be achieved. Forward-looking statements involve numerous risks and uncertainties, any one or more of which could affect Premier’s business and financial results in future periods and could cause actual results to differ materially from plans and projections. These risks and uncertainties include, but not limited to: impacts from the novel coronavirus (COVID-19) pandemic on the economy, financial markets, our customers, and our business and results of operation; changes in interest rates; disruptions in the mortgage market; risks and uncertainties inherent in general and local banking, insurance and mortgage conditions; political uncertainty; uncertainty in U.S. fiscal or monetary policy; uncertainty concerning or disruptions relating to tensions surrounding the current socioeconomic landscape; competitive factors specific to markets in which Premier operates; increasing competition for financial products from other financial institutions and nonbank financial technology companies; legislative or regulatory rulemaking or actions; capital market conditions; security breaches or unauthorized disclosure of confidential customer or Company information; interruptions in the effective operation of information and transaction processing systems of Premier or Premier’s vendors and service providers; failures or delays in integrating or adopting new technology; the impact of the cessation of LIBOR interest rates and implementation of a replacement rate; and other risks and uncertainties detailed from time to time in our Securities and Exchange Commission (SEC) filings, including our Annual Report on Form 10-K for the year ended December 31, 2020, the Form 10-K/A filed September 28, 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 September 30, 2021, consolidated financial statements as part of its Quarterly Report on Form 10-Q to be filed with the SEC. Accordingly, subsequent events could occur that may cause Premier to update its critical accounting estimates and to revise its financial information from that which is contained in this news release.

Non-GAAP Reporting Measures

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

Consolidated Balance Sheets (Unaudited)
Premier Financial Corp.
	September 30,				December 31,
(in thousands)	2021				2020
Assets
Cash and cash equivalents
Cash and amounts due from depository institutions	$	63,480			$	79,593
Interest-bearing deposits		51,614				79,673
		115,094				159,266
Available-for sale, carried at fair value		1,250,087				736,654
Trading securities, carried at fair value		12,965				1,090
Securities investments		1,263,052				737,744
Loans		5,269,566				5,491,240
Allowance for credit losses - loans		(73,217	)			(82,079	)
Loans, net		5,196,349				5,409,161
Loans held for sale		178,490				221,616
Mortgage servicing rights		19,105				13,153
Accrued interest receivable		22,994				25,434
Federal Home Loan Bank stock		11,585				16,026
Bank Owned Life Insurance		166,866				144,784
Office properties and equipment		56,073				58,665
Real estate and other assets held for sale		261				343
Goodwill		317,948				317,948
Core deposit and other intangibles		25,612				30,337
Other assets		94,889				77,257
Total Assets	$	7,468,318			$	7,211,734
Liabilities and Stockholders’ Equity
Non-interest-bearing deposits	$	1,618,769			$	1,597,262
Interest-bearing deposits		4,629,889				4,450,579
Total deposits		6,248,658				6,047,841
Advances from FHLB and PPPLF		-				-
Notes payable and other interest-bearing liabilities		18,812				-
Subordinated debentures		84,944				84,860
Advance payments by borrowers for tax and insurance		19,495				21,748
Reserve for credit losses - unfunded commitments		5,838				5,350
Other liabilities		58,702				69,659
Total Liabilities		6,436,449				6,229,458
Stockholders’ Equity
Preferred stock		-				-
Common stock, net		306				306
Additional paid-in-capital		690,783				689,390
Accumulated other comprehensive income (loss)		1,609				15,004
Retained earnings		428,518				356,414
Treasury stock, at cost		(89,347	)			(78,838	)
Total Stockholders’ Equity		1,031,869				982,276
Total Liabilities and Stockholders’ Equity	$	7,468,318			$	7,211,734

Consolidated Statements of Income (Unaudited)
Premier Financial Corp.
	Three Months Ended								Nine Months Ended
	September 30,								September 30,
(in thousands, except per share amounts)	2021				2020				2021				2020
Interest Income:
Loans	$	55,443			$	57,134			$	168,781			$	167,390
Investment securities		5,325				2,848				13,999				8,489
Interest-bearing deposits		33				82				142				391
FHLB stock dividends		60				95				175				861
Total interest income		60,861				60,159				183,097				177,131
Interest Expense:
Deposits		3,144				6,555				10,867				21,761
FHLB advances and other		11				168				23				1,690
Subordinated debentures		671				158				2,040				610
Notes Payable		-				7				-				32
Total interest expense		3,826				6,888				12,930				24,093
Net interest income		57,035				53,271				170,167				153,038
Provision (benefit) for credit losses - loans		1,594				3,658				(9,549	)			49,312
Provision (benefit) for credit losses - unfunded commitments		226				(864	)			488				1,702
Total provision (benefit) for credit losses		1,820				2,794				(9,061	)			51,014
Net interest income after provision		55,215				50,477				179,228				102,024
Non-interest Income:
Service fees and other charges		6,067				4,805				17,817				15,601
Mortgage banking income		6,175				12,047				18,865				22,763
Gain on sale of non-mortgage loans		-				-				-				234
Gain (loss) on sale of available for sale securities		233				1,466				2,218				1,464
Gain (loss) on trading securities		20				14				822				14
Insurance commissions		3,461				3,715				12,401				12,875
Wealth management income		1,321				1,458				4,644				4,351
Income from Bank Owned Life Insurance		947				841				2,975				2,460
Other non-interest income		90				654				2,391				2,251
Total Non-interest Income		18,314				25,000				62,133				62,013
Non-interest Expense:
Compensation and benefits		23,355				20,172				66,399				57,331
Occupancy		3,693				3,989				11,642				11,848
FDIC insurance premium		695				1,469				2,115				2,372
Financial institutions tax		1,187				1,116				3,553				3,066
Data processing		3,387				4,289				10,103				11,135
Amortization of intangibles		1,528				1,726				4,725				4,781
Acquisition related charges		-				3,711				-				17,295
Other non-interest expense		5,200				7,091				17,686				16,028
Total Non-interest Expense		39,045				43,563				116,223				123,856
Income (loss) before income taxes		34,484				31,914				125,138				40,181
Income tax expense (benefit)		6,124				6,259				24,397				7,951
Net Income (Loss)	$	28,360			$	25,655			$	100,741			$	32,230
Earnings (loss) per common share:
Basic	$	0.76			$	0.69			$	2.70			$	0.91
Diluted	$	0.76			$	0.69			$	2.70			$	0.91
Average Shares Outstanding:
Basic		37,100				37,297				37,226				35,423
Diluted		37,185				37,334				37,311				35,482

Premier Financial Corp.
Financial Summary and Comparison (Unaudited)
	Three Months Ended									Nine Months Ended
	September 30,									September 30,
(dollars in thousands, except per share data)	2021			2020			% change			2021			2020			% change
Summary of Operations
Tax-equivalent interest income (2)	$	61,117		$	60,418		1.2			$	183,860		$	177,898		3.4
Interest expense		3,826			6,888		(44.5	)			12,930			24,093		(46.3	)
Tax-equivalent net interest income (2)		57,291			53,530		7.0				170,930			153,805		11.1
Provision (benefit) for credit losses		1,820			2,794		(34.9	)			(9,061	)		51,014		(117.8	)
Core provision (benefit) for credit losses (4)		1,820			2,794		(34.9	)			(9,061	)		25,065		(136.2	)
Investment securities gains (losses)		253			1,480		NM				3,040			1,478		NM
Non-interest income (excluding securities gains/losses)		18,061			23,520		(23.2	)			59,093			60,535		(2.4	)
Non-interest expense		39,045			43,563		(10.4	)			116,223			123,856		(6.2	)
Core non-interest expense (4)		39,045			38,445		1.6				116,223			105,154		10.5
Income tax expense (benefit)		6,124			6,259		(2.2	)			24,397			7,951		206.8
Net income (loss)		28,360			25,655		10.5				100,741			32,230		212.6
Core net income (4)		28,360			28,587		(0.8	)			100,741			66,771		50.9
Tax equivalent adjustment (2)		256			259		(1.2	)			763			767		(0.5	)
At Period End
Assets		7,468,318			6,974,953		7.1
Earning assets		6,774,307			6,340,132		6.8
Loans		5,269,566			5,470,548		(3.7	)
Allowance for credit losses - loans		73,217			88,917		(17.7	)
Deposits		6,248,658			5,795,757		7.8
Stockholders’ equity		1,031,869			959,025		7.6
Average Balances
Assets		7,529,100			6,935,783		8.6				7,473,203			6,437,886		16.1
Earning assets		6,773,021			6,211,267		9.0				6,730,807			5,787,134		16.3
Loans		5,416,696			5,555,621		(2.5	)			5,513,285			5,095,167		8.2
Deposits and interest-bearing liabilities		6,422,455			5,901,652		8.8				6,384,654			5,457,179		17.0
Deposits		6,317,229			5,738,006		10.1				6,282,862			5,162,952		21.7
Stockholders’ equity		1,020,206			927,506		10.0				1,000,047			881,932		13.4
Stockholders’ equity / assets		13.55	%		13.37	%	1.3				13.38	%		13.70	%	(2.3	)
Per Common Share Data
Net Income (Loss)
Basic	$	0.76		$	0.69		10.1			$	2.70		$	0.91		196.7
Diluted		0.76			0.69		10.1				2.70			0.91		196.7
Core diluted (4)		0.76			0.77		(1.3	)			2.70			1.88		43.6
Dividends Paid		0.27			0.22		22.7				0.77			0.66		16.7
Market Value:
High	$	32.72		$	21.24		54.0			$	35.90		$	32.05		12.0
Low		25.80			14.74		75.0				22.23			10.98		102.5
Close		31.84			15.58		104.4				31.84			15.58		104.4
Common Book Value		27.90			25.71		8.5				27.90			25.71		8.5
Tangible Common Book Value (1)		18.61			16.33		14.0				18.61			16.33		14.0
Shares outstanding, end of period (000s)		36,978			37,297		(0.9	)			36,978			37,297		(0.9	)
Performance Ratios (annualized)
Tax-equivalent net interest margin (2)		3.38	%		3.45	%	(2.0	)			3.39	%		3.54	%	(4.2	)
Return on average assets		1.49	%		1.49	%	0.3				1.80	%		0.67	%	169.0
Core return on average assets (4)		1.49	%		1.64	%	(8.9	)			1.80	%		1.39	%	30.1
Return on average equity		11.03	%		11.12	%	(0.8	)			13.47	%		4.88	%	176.0
Core return on average equity (4)		11.03	%		12.26	%	(10.1	)			13.47	%		10.11	%	33.2
Return on average tangible equity		16.65	%		17.71	%	(6.0	)			20.59	%		7.70	%	167.6
Core return on average tangible equity (4)		16.65	%		19.73	%	(15.6	)			20.59	%		15.99	%	28.8
Efficiency ratio (3)		51.82	%		56.54	%	(8.4	)			50.53	%		57.78	%	(12.6	)
Core efficiency ratio (4)		51.82	%		49.90	%	3.8				50.53	%		49.06	%	3.0
Effective tax rate		17.76	%		19.61	%	(9.4	)			19.50	%		19.79	%	(1.5	)
Dividend payout ratio (core)		35.53	%		28.57	%	24.3				28.52	%		35.11	%	(18.8	)
Note: Year-to-date 2020 results include eight months of operations from UCFC compared to nine for comparable period in 2021.
(1) Tangible common book value = total stockholders' equity less the sum of goodwill, core deposit and other intangibles, and preferred stock divided by shares outstanding at the end of the period.
(2) Interest income on tax-exempt securities and loans has been adjusted to a tax-equivalent basis using the statutory federal income tax rate of 21%.
(3) Efficiency ratio = Non-interest expense divided by sum of tax-equivalent net interest income plus non-interest income, excluding securities gains or losses, net.
(4) Core items exclude the impact of acquisition related provision ("CECL double-dip") and other charges. See non-GAAP reconciliations.
NM Percentage change not meaningful

Premier Financial Corp.
(dollars in thousands)
	Three Months Ended												Nine Months Ended
	September 30,												September 30,
Mortgage Banking Summary	2021				2020								2021				2020
Revenue from sales and servicing of mortgage loans:
Mortgage banking gains, net	$	5,353			$	13,781							$	13,663			$	30,213
Mortgage loan servicing revenue (expense):
Mortgage loan servicing revenue		1,861				1,898								5,665				5,379
Amortization of mortgage servicing rights		(1,822	)			(1,959	)							(6,119	)			(5,302	)
Mortgage servicing rights valuation adjustments		783				(1,673	)							5,656				(7,527	)
		822				(1,734	)							5,202				(7,450	)
Total revenue from sale and servicing of mortgage loans	$	6,175			$	12,047							$	18,865			$	22,763
Mortgage servicing rights:
Balance at beginning of period	$	21,682			$	21,034							$	21,666			$	10,801
Loans sold, servicing retained		2,103				2,463								6,415				6,292
Mortgage servicing rights acquired		-				-								-				9,747
Amortization		(1,822	)			(1,959	)							(6,119	)			(5,302	)
Carrying value before valuation allowance at end of period		21,963				21,538								21,962				21,538
Valuation allowance:
Balance at beginning of period		(3,641	)			(6,388	)							(8,513	)			(534	)
Impairment recovery (charges)		783				(1,673	)							5,656				(7,527	)
Balance at end of period		(2,858	)			(8,061	)							(2,857	)			(8,061	)
Net carrying value at end of period	$	19,105			$	13,477							$	19,105			$	13,477
COVID-19 Deferrals Update	9/30/2021				6/30/2021				3/31/2021				12/31/2020				9/30/2020				6/30/2020
Commercial loan deferrals	$	-			$	-			$	32,370			$	46,038			$	434,554			$	739,632
% of commercial loans		0.0	%			0.0	%			0.8	%			1.2	%			11.4	%			19.7	%
% of total loans		0.0	%			0.0	%			0.6	%			0.8	%			7.9	%			13.5	%
Retail loan deferrals	$	-			$	13			$	3,414			$	7,412			$	48,187			$	73,266
% of retail loans		0.0	%			0.0	%			0.2	%			0.4	%			2.9	%			4.3	%
% of total loans		0.0	%			0.0	%			0.1	%			0.1	%			0.9	%			1.3	%
Total loan deferrals	$	-			$	13			$	35,784			$	53,450			$	482,741			$	812,898
% of total loans		0.0	%			0.0	%			0.7	%			1.0	%			8.8	%			14.9	%
Note: Year-to-date 2020 results include eight months of operations from UCFC compared to nine for comparable periods in 2021.

Premier Financial Corp.
Yield Analysis
	Three Months Ended September 30,
	(dollars in thousands)
	2021									2020
	Average						Yield			Average						Yield
	Balance			Interest(1)			Rate(2)			Balance			Interest(1)			Rate(2)
Interest-earning assets:
Loans receivable	$	5,416,696		$	55,444		4.09	%		$	5,555,621		$	57,158		4.12	%
Securities		1,273,148			5,580		1.75	%			552,458			3,083		2.23	% (3)
Interest Bearing Deposits		71,276			33		0.19	%			65,551			82		0.50	%
FHLB stock		11,901			60		2.02	%			37,637			95		1.01	%
Total interest-earning assets		6,773,021			61,117		3.61	%			6,211,267			60,418		3.89	%
Non-interest-earning assets		756,079									724,516
Total assets	$	7,529,100								$	6,935,783
Deposits and Interest-bearing liabilities:
Interest bearing deposits	$	4,649,462		$	3,144		0.27	%		$	4,285,287		$	6,555		0.61	%
FHLB advances and other		20,098			11		0.22	%			120,417			168		0.56	%
Subordinated debentures		84,924			671		3.16	%			36,613			158		1.73	%
Notes payable		204			-		0.75	%			6,616			7		0.42	%
Total interest-bearing liabilities		4,754,688			3,826		0.32	%			4,448,933			6,888		0.62	%
Non-interest bearing deposits		1,667,767			-		-				1,452,719			-		-
Total including non-interest-bearing deposits		6,422,455			3,826		0.24	%			5,901,652			6,888		0.47	%
Other non-interest-bearing liabilities		86,439									106,625
Total liabilities		6,508,894									6,008,277
Stockholders' equity		1,020,206									927,506
Total liabilities and stockholders' equity	$	7,529,100								$	6,935,783
Net interest income; interest rate spread				$	57,291		3.29	%					$	53,530		3.27	%
Net interest margin (4)							3.38	%								3.45	%
Average interest-earning assets to average interest bearing liabilities							142	%								140	%
	Nine Months Ended September 30,
	2021									2020
	Average						Yield			Average						Yield
	Balance			Interest(1)			Rate(2)			Balance			Interest(1)			Rate(2)
Interest-earning assets:
Loans receivable	$	5,513,285		$	168,810		4.08	%		$	5,095,167		$	167,463		4.38	%
Securities		1,098,478			14,733		1.79	%			514,979			9,183		2.38	% (3)
Interest Bearing Deposits		107,381			142		0.18	%			131,384			391		0.40	%
FHLB stock		11,663			175		2.00	%			45,604			861		2.52	%
Total interest-earning assets		6,730,807			183,860		3.64	%			5,787,134			177,898		4.10	%
Non-interest-earning assets		742,396									650,752
Total assets	$	7,473,203								$	6,437,886
Deposits and Interest-bearing liabilities:
Interest bearing deposits	$	4,612,354		$	10,867		0.31	%		$	3,929,881		$	21,761		0.74	%
FHLB advances and other		16,828			23		0.18	%			249,889			1,690		0.90	%
Subordinated debentures		84,895			2,040		3.20	%			36,261			610		2.24	%
Notes payable		69			-		0.75	%			8,077			32		0.53	%
Total interest-bearing liabilities		4,714,146			12,930		0.37	%			4,224,108			24,093		0.76	%
Non-interest bearing deposits		1,670,508			-		-				1,233,071			-		-
Total including non-interest-bearing deposits		6,384,654			12,930		0.27	%			5,457,179			24,093		0.59	%
Other non-interest-bearing liabilities		88,502									98,775
Total liabilities		6,473,156									5,555,954
Stockholders' equity		1,000,047									881,932
Total liabilities and stockholders' equity	$	7,473,203								$	6,437,886
Net interest income; interest rate spread				$	170,930		3.27	%					$	153,805		3.34	%
Net interest margin (4)							3.39	%								3.54	%
Average interest-earning assets to average interest bearing liabilities							143	%								137	%
Note: Year-to-date 2020 results include eight months of operations from UCFC compared to nine for comparable period in 2021.
(1) Interest on certain tax exempt loans and securities is not taxable for Federal income tax purposes. In order to compare the tax-exempt yields on these assets to taxable yields, the interest earned on these assets is adjusted to a pre-tax equivalent amount based on the marginal corporate federal income tax rate of 21%.
(2) Annualized.
(3) Securities yield = annualized interest income divided by the average balance of securities, excluding average unrealized gains/losses.
(4) Net interest margin is tax equivalent net interest income divided by average interest-earning assets.

Premier Financial Corp.
Selected Quarterly Information
(dollars in thousands, except per share data)	3rd Qtr 2021			2nd Qtr 2021			1st Qtr 2021			4th Qtr 2020			3rd Qtr 2020
Summary of Operations
Tax-equivalent interest income (1)	$	61,117		$	61,134		$	61,609		$	61,067		$	60,418
Interest expense		3,826			4,245			4,859			5,849			6,888
Tax-equivalent net interest income (1)		57,291			56,889			56,750			55,218			53,530
Provision (benefit) for credit losses		1,820			(3,919	)		(6,963	)		(6,764	)		2,794
Core provision (benefit) for credit losses (3)		1,820			(3,919	)		(6,963	)		(6,764	)		2,794
Investment securities gains (losses)		253			661			2,126			76			1,480
Non-interest income (excluding securities gains/losses)		18,061			16,884			24,149			18,594			23,520
Non-interest expense		39,045			38,375			38,803			41,313			43,563
Core non-interest expense (3)		39,045			38,375			38,803			39,123			38,445
Income tax expense (benefit)		6,124			8,323			9,952			8,240			6,259
Net income (loss)		28,360			31,385			40,996			30,848			25,655
Core net income (3)		28,360			31,385			40,996			32,577			28,587
Tax equivalent adjustment (1)		256			270			237			251			259
At Period End
Total assets	$	7,468,318		$	7,593,720		$	7,530,462		$	7,211,734		$	6,974,953
Earning assets		6,774,307			6,920,008			6,852,357			6,546,299			6,340,132
Loans		5,269,566			5,348,400			5,459,683			5,491,240			5,470,548
Allowance for loan losses		73,217			71,367			74,754			82,079			88,917
Deposits		6,248,658			6,291,459			6,351,919			6,047,841			5,795,757
Stockholders’ equity		1,031,869			1,027,703			998,186			982,276			959,025
Stockholders’ equity / assets		13.82	%		13.53	%		13.26	%		13.62	%		13.75	%
Goodwill		317,948			317,948			317,948			317,948			317,948
Average Balances
Total assets	$	7,529,100		$	7,549,531		$	7,338,886		$	7,089,060		$	6,935,783
Earning assets		6,773,021			6,806,275			6,611,343			6,363,306			6,211,267
Loans		5,416,696			5,495,782			5,629,715			5,609,116			5,555,621
Deposits and interest-bearing liabilities		6,422,455			6,454,731			6,275,160			6,044,049			5,901,652
Deposits		6,317,229			6,339,673			6,190,292			5,956,550			5,738,006
Stockholders’ equity		1,020,206			1,006,757			972,653			946,223			927,506
Stockholders’ equity / assets		13.55	%		13.34	%		13.25	%		13.35	%		13.37	%
Per Common Share Data
Net Income (Loss):
Basic	$	0.76		$	0.84		$	1.10		$	0.83		$	0.69
Diluted		0.76			0.84			1.10			0.82			0.69
Core diluted (3)		0.76			0.84			1.10			0.87			0.77
Dividends Paid		0.27			0.26			0.24			0.22			0.22
Market Value:
High	$	32.72		$	33.97		$	35.90		$	23.49		$	21.24
Low		25.80			27.76			22.23			14.90			14.74
Close		31.84			28.41			33.26			23.00			15.58
Common Book Value		27.90			27.64			26.78			26.34			25.71
Shares outstanding, end of period (000s)		36,978			37,178			37,275			37,291			37,297
Performance Ratios (annualized)
Tax-equivalent net interest margin (1)		3.38	%		3.34	%		3.43	%		3.47	%		3.47	%
Return on average assets		1.49	%		1.67	%		2.27	%		1.73	%		1.49	%
Core return on average assets (3)		1.49	%		1.67	%		2.27	%		1.83	%		1.64	%
Return on average equity		11.03	%		12.50	%		17.09	%		12.97	%		11.12	%
Core return on average equity (3)		11.03	%		12.50	%		17.09	%		13.70	%		12.26	%
Return on average tangible equity		16.65	%		19.05	%		26.60	%		20.37	%		17.71	%
Core return on average tangible equity (3)		16.65	%		19.05	%		26.60	%		21.51	%		19.73	%
Efficiency ratio (2)		51.82	%		52.02	%		47.96	%		55.97	%		56.54	%
Core efficiency ratio (3)		51.82	%		52.02	%		47.96	%		53.00	%		49.90	%
Effective tax rate		17.76	%		20.96	%		19.53	%		21.08	%		19.61	%
Common dividend payout ratio (core)		35.53	%		30.95	%		21.82	%		25.29	%		28.57	%
(1) Interest income on tax-exempt securities and loans has been adjusted to a tax-equivalent basis using the statutory federal income tax rate of 21%.
(2) Efficiency ratio = Non-interest expense divided by sum of tax-equivalent net interest income plus non-interest income, excluding securities gains or losses, net.
(3) Core items exclude the impact of acquisition related provision ("CECL double-dip") and other charges. See non-GAAP reconciliations.

Premier Financial Corp.
Selected Quarterly Information
(dollars in thousands, except per share data)	3rd Qtr 2021				2nd Qtr 2021				1st Qtr 2021				4th Qtr 2020				3rd Qtr 2020
Loan Portfolio Composition
One to four family residential real estate	$	1,129,877			$	1,138,433			$	1,168,559			$	1,201,051			$	1,194,940
Construction		885,586				830,822				749,190				667,649				580,060
Commercial real estate		2,389,759				2,405,653				2,402,067				2,383,001				2,328,944
Commercial		952,729				1,051,972				1,172,910				1,202,353				1,263,565
Consumer finance		125,163				118,526				117,539				120,729				128,995
Home equity and improvement		264,140				261,842				257,764				272,701				281,010
Total loans		5,747,254				5,807,248				5,868,029				5,847,484				5,777,514
Less:
Undisbursed loan funds		481,434				458,156				405,983				355,065				300,174
Deferred loan origination fees		(3,746	)			692				2,363				1,179				6,792
Allowance for credit losses - loans		73,217				71,367				74,754				82,079				88,917
Net Loans	$	5,196,349			$	5,277,033			$	5,384,929			$	5,409,161			$	5,381,631
Allowance for credit losses - loans
Beginning allowance	$	71,367			$	74,754			$	82,079			$	88,917			$	88,555
Provision (benefit) for credit losses - loans		1,594				(3,631	)			(7,514	)			(6,158	)			3,658
Net recoveries (charge-offs)		256				244				189				(680	)			(3,296	)
Ending allowance	$	73,217			$	71,367			$	74,754			$	82,079			$	88,917
Credit Quality
Total non-performing loans (1)	$	59,865			$	41,296			$	49,298			$	51,682			$	48,360
Real estate owned (REO)		261				45				53				343				521
Total non-performing assets (2)	$	60,126			$	41,341			$	49,351			$	52,025			$	48,881
Net charge-offs (recoveries)		(256	)			(244	)			(189	)			680				3,296
Restructured loans, accruing (3)		6,503				5,939				6,068				7,173				8,499
Allowance for credit losses - loans / loans		1.39	%			1.33	%			1.37	%			1.49	%			1.63	%
Allowance for credit losses - loans / non-performing assets		121.77	%			172.63	%			151.47	%			157.77	%			181.90	%
Allowance for credit losses - loans / non-performing loans		122.30	%			172.82	%			151.64	%			158.82	%			183.90	%
Non-performing assets / loans plus REO		1.14	%			0.77	%			0.90	%			0.95	%			0.89	%
Non-performing assets / total assets		0.81	%			0.54	%			0.66	%			0.73	%			0.70	%
Net charge-offs / average loans (annualized)		-0.02	%			-0.02	%			-0.01	%			0.05	%			0.24	%
Deposit Balances
Non-interest-bearing demand deposits	$	1,618,769			$	1,649,664			$	1,728,895			$	1,597,262			$	1,436,807
Interest-bearing demand deposits and money market		2,962,032				2,890,769				2,806,271				2,627,669				2,511,263
Savings deposits		786,929				777,862				761,899				700,480				674,354
Retail time deposits less than $250,000		692,224				720,317				842,624				912,006				975,658
Retail time deposits greater than $250,000		188,704				252,847				212,230				210,424				197,675
Total deposits	$	6,248,658			$	6,291,459			$	6,351,919			$	6,047,841			$	5,795,757
(1) Non-performing loans consist of non-accrual loans.
(2) Non-performing assets are non-performing loans plus real estate and other assets acquired by foreclosure or deed-in-lieu thereof.
(3) Accruing restructured loans are loans with known credit problems that are not contractually past due and therefore are not included in non-performing loans.

Premier Financial Corp.
Loan Delinquency Information
(dollars in thousands)	Total Balance		Current		30 to 89 days past due		% of Total		Non Accrual Loans		% of Total
September 30, 2021
One to four family residential real estate	$	1,129,877	$	1,115,076	$	5,663	0.5	%	$	9,138	0.8	%
Construction		885,586		884,265		1,321	0.1	%		-	0.0	%
Commercial real estate		2,389,759		2,367,760		146	0.0	%		21,853	0.9	%
Commercial		952,729		928,321		442	0.0	%		23,966	2.5	%
Consumer finance		125,163		121,580		1,792	1.4	%		1,791	1.4	%
Home equity and improvement		264,140		259,175		1,848	0.7	%		3,117	1.2	%
Total loans	$	5,747,254	$	5,676,177	$	11,212	0.2	%	$	59,865	1.0	%
June 30, 2021
One to four family residential real estate	$	1,138,433	$	1,122,060	$	5,757	0.5	%	$	10,616	0.9	%
Construction		830,822		830,242		580	0.1	%		-	0.0	%
Commercial real estate		2,405,653		2,388,082		53	0.0	%		17,518	0.7	%
Commercial		1,051,972		1,044,265		-	0.0	%		7,707	0.7	%
Consumer finance		118,526		115,169		1,530	1.3	%		1,827	1.5	%
Home equity and improvement		261,842		256,259		1,955	0.7	%		3,628	1.4	%
Total loans	$	5,807,248	$	5,756,077	$	9,875	0.2	%	$	41,296	0.7	%
September 30, 2020
One to four family residential real estate	$	1,194,940	$	1,173,175	$	10,562	0.9	%	$	11,203	0.9	%
Construction		580,060		578,110		1,587	0.3	%		363	0.1	%
Commercial real estate		2,328,944		2,305,223		703	0.0	%		23,018	1.0	%
Commercial		1,263,565		1,253,474		212	0.0	%		9,879	0.8	%
Consumer finance		128,995		125,260		2,682	2.1	%		1,053	0.8	%
Home equity and improvement		281,010		273,041		5,125	1.8	%		2,844	1.0	%
Total loans	$	5,777,514	$	5,708,283	$	20,871	0.4	%	$	48,360	0.8	%
Loan Risk Ratings Information
(dollars in thousands)	Total Balance		Pass Rated		Special Mention		% of Total		Classified		% of Total
September 30, 2021
One to four family residential real estate	$	1,117,055	$	1,107,787	$	1,315	0.1	%	$	7,953	0.7	%
Construction		885,586		866,054		19,532	2.2	%		-	0.0	%
Commercial real estate		2,379,734		2,220,881		117,068	4.9	%		41,785	1.8	%
Commercial		944,202		903,626		20,474	2.2	%		20,102	2.1	%
Consumer finance		124,525		122,956		-	0.0	%		1,569	1.3	%
Home equity and improvement		260,408		258,575		-	0.0	%		1,833	0.7	%
PCD loans		35,744		18,793		102	0.3	%		16,849	47.1	%
Total loans	$	5,747,254	$	5,498,672	$	158,491	2.8	%	$	90,091	1.6	%
June 30, 2021
One to four family residential real estate	$	1,125,097	$	1,114,219	$	1,117	0.1	%	$	9,761	0.9	%
Construction		830,822		815,429		15,393	1.9	%		-	0.0	%
Commercial real estate		2,393,591		2,217,858		132,099	5.5	%		43,634	1.8	%
Commercial		1,038,059		991,021		24,898	2.4	%		22,140	2.1	%
Consumer finance		117,764		116,137		-	0.0	%		1,627	1.4	%
Home equity and improvement		257,618		255,497		-	0.0	%		2,121	0.8	%
PCD loans		44,297		21,328		905	2.0	%		22,064	49.8	%
Total loans	$	5,807,248	$	5,531,489	$	174,412	3.0	%	$	101,347	1.7	%
September 30, 2020
One to four family residential real estate	$	1,179,783	$	1,176,565	$	268	0.0	%	$	2,950	0.3	%
Construction		580,060		556,918		23,142	4.0	%		-	0.0	%
Commercial real estate		2,304,147		2,164,495		108,011	4.7	%		31,641	1.4	%
Commercial		1,234,158		1,200,581		24,618	2.0	%		8,959	0.7	%
Consumer finance		128,057		127,937		-	0.0	%		120	0.1	%
Home equity and improvement		276,246		275,831		-	0.0	%		415	0.2	%
PCD loans		75,063		28,866		11,443	15.2	%		34,754	46.3	%
Total loans	$	5,777,514	$	5,531,193	$	167,482	2.9	%	$	78,839	1.4	%

Premier Financial Corp.
Non-GAAP Reconciliations
	Nine months ended
(In thousands, except per share and ratio data)	9/30/21			9/30/20			3rd Qtr 2021			2nd Qtr 2021			1st Qtr 2021			4th Qtr 2020			3rd Qtr 2020
Acquisition related charges (pre-tax)	$	-		$	17,295		$	-		$	-		$	-		$	2,190		$	3,711
Less: Tax benefit of acquisition related charges		-			3,254			-			-			-			460			779
Acquisition related charges (after-tax)	$	-		$	14,041		$	-		$	-		$	-		$	1,730		$	2,932
Total non-interest expenses	$	116,223		$	123,856		$	39,045		$	38,375		$	38,803		$	41,313		$	43,563
Less: Acquisition related charges (pre-tax)		-			17,295			-			-			-			2,190			3,711
Less: FHLB prepayment charges(1)		-			1,407			-			-			-			-			1,407
Core non-interest expenses	$	116,223		$	105,154		$	39,045		$	38,375		$	38,803		$	39,123		$	38,445
Acquisition related provision (pre-tax)	$	-		$	25,949		$	-		$	-		$	-		$	-		$	-
Less: Tax benefit of acquisition related provision		-			5,449			-			-			-			-			-
Acquisition related provision (after-tax)	$	-		$	20,500		$	-		$	-		$	-		$	-		$	-
Provision (benefit) for credit losses	$	(9,061	)	$	51,014		$	1,820		$	(3,919	)	$	(6,963	)	$	(6,764	)	$	2,794
Less: Acquisition related provision (pre-tax)		-			25,949			-			-			-			-			-
Core provision (benefit) for credit losses	$	(9,061	)	$	25,065		$	1,820		$	(3,919	)	$	(6,963	)	$	(6,764	)	$	2,794
Non-interest income	$	62,133		$	62,013		$	18,314		$	17,545		$	26,275		$	18,669		$	25,000
Less: Securities gains (losses)		3,040			1,478			253			661			2,126			76			1,480
Non-interest income (excluding securities gains/losses)	$	59,093		$	60,535		$	18,061		$	16,884		$	24,149		$	18,593		$	23,520
Tax-equivalent net interest income	$	170,930		$	153,805		$	57,291		$	56,889		$	56,750		$	55,218		$	53,530
Non-interest income (excluding securities gains/losses)		59,093			60,535			18,061			16,884			24,149			18,593			23,520
Total revenues		230,023			214,340			75,352			73,773			80,899			73,811			77,050
Core non-interest expenses	$	116,223		$	105,154		$	39,045		$	38,375		$	38,803		$	39,123		$	38,445
Core efficiency ratio		50.53	%		49.06	%		51.82	%		52.02	%		47.96	%		53.00	%		49.90	%
Income (loss) before income taxes	$	125,138		$	40,181		$	34,484		$	39,708		$	50,948		$	39,087		$	31,914
Add: Provision (benefit) for credit losses		(9,061	)		51,014			1,820			(3,919	)		(6,963	)		(6,764	)		2,794
Pre-tax pre-provision income		116,077			91,195			36,304			35,789			43,985			32,323			34,708
Add: Acquisition related charges (pre-tax)		-			17,295			-			-			-			2,190			3,711
Core pre-tax pre-provision income	$	116,077		$	108,490		$	36,304		$	35,789		$	43,985		$	34,513		$	38,419
Average total assets	$	7,473,203		$	6,437,886		$	7,529,100		$	7,549,531		$	7,338,886		$	7,089,060		$	6,935,783
Core pre-tax pre-provision return on average assets		2.08	%		2.25	%		1.91	%		1.90	%		2.43	%		1.94	%		2.20	%
Net income (loss)	$	100,741		$	32,230		$	28,360		$	31,385		$	40,996		$	30,847		$	25,655
Add: Acquisition related provision (after-tax)		-			20,500			-			-			-			-			-
Add: Acquisition related charges (after-tax)		-			14,041			-			-			-			1,730			2,932
Core net income	$	100,741		$	66,771		$	28,360		$	31,385		$	40,996		$	32,577		$	28,587
Diluted shares - Reported		37,311			35,482			37,185			37,358			37,357			37,350			37,334
Add: Dilutive shares for core net income		-			-			-			-			-			-			-
Diluted shares - Core		37,311			35,482			37,185			37,358			37,357			37,350			37,334
Core diluted EPS	$	2.70		$	1.88		$	0.76		$	0.84		$	1.10		$	0.87		$	0.77
Average total assets	$	7,473,203		$	6,437,886		$	7,529,100		$	7,549,531		$	7,338,886		$	7,089,060		$	6,935,783
Core return on average assets		1.80	%		1.39	%		1.49	%		1.67	%		2.27	%		1.83	%		1.64	%
Average total equity	$	1,000,047		$	881,932		$	1,020,206		$	1,006,757		$	972,653		$	946,223		$	927,506
Core return on average equity		13.47	%		10.11	%		11.03	%		12.50	%		17.09	%		13.70	%		12.26	%
Average total tangible equity	$	654,072		$	557,829		$	675,875		$	660,785		$	624,996		$	602,495		$	576,457
Core return on average tangible equity		20.59	%		15.99	%		16.65	%		19.05	%		26.60	%		21.51	%		19.73	%
Note: Year-to-date results include nine months of operations from UCFC compared to eight for comparable period in 2020.
(1) Represents prepayment penalties on FHLB early extinguishments funded by gains on securities sales that are excluded from revenues for efficiency ratio calculation.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20211028006123/en/

Paul Nungester

EVP and CFO

419.785.8700

PNungester@yourpremierbank.com

Source: Premier Financial Corp.

FAQ

What were Premier Financial Corp's Q3 2021 earnings results?

In Q3 2021, Premier Financial Corp reported a net income of $28.4 million, or $0.76 per share, marking a 10.5% increase from the prior year.

How did Premier Financial Corp's loan growth perform in Q3 2021?

The company achieved a loan growth of $64.4 million, representing a 5.1% annualized increase, excluding PPP loans.

What is the current net interest margin for Premier Financial Corp?

As of Q3 2021, the net interest margin stood at 3.38%, which reflects a slight improvement from the second quarter.

What is the new dividend declared by Premier Financial Corp?

Premier Financial Corp has declared a quarterly dividend of $0.28 per share, which is a 27% increase from last year.

What was the status of non-interest income for Premier Financial Corp in Q3 2021?

Non-interest income decreased to $18.3 million in Q3 2021, primarily due to a decline in mortgage banking income.