Premier Financial Corp. Announces Third Quarter 2022 Results Including Continued Strong Loan and Deposit Growth

Rhea-AI Summary

Premier Financial Corp. (PFC) reported a strong third quarter 2022, with net income of $28.2 million, or $0.79 per diluted share, compared to $28.4 million, or $0.76 per share, in the same quarter of 2021. Loan growth surged by $300.9 million (19.9% annualized), while customer deposits rose by $146.3 million (9.0% annualized). The net interest income increased to $63.5 million, a 7.1% rise from the previous quarter. The company declared a quarterly dividend of $0.30 per share, marking a 7.1% increase from last year. The asset quality improved, with non-performing loans down 4.6%.

Positive

• Loan growth up $300.9 million (19.9% annualized).
• Customer deposits increased by $146.3 million (9.0% annualized).
• Net interest income rose to $63.5 million (up 7.1% from Q2 2022).
• Declared quarterly dividend of $0.30, up 7.1% year-over-year.
• Non-performing loans decreased by 4.6%.

Negative

• Net income for Q3 2022 slightly decreased to $28.2 million from $28.4 million in Q3 2021.
• Year-to-date net income down to $76.9 million from $100.7 million in 2021.

Third Quarter 2022 Highlights

• Loan growth of $300.9 million (up 19.9% annualized) including $151.0 million for commercial loans excluding PPP (up 15.2% annualized) and $114.2 million for residential loans including held for sale (up 28.3% annualized)
• Customer deposits growth of $146.3 million (up 9.0% annualized) including $40.0 million of non-interest-bearing (up 9.0% annualized)
• Net interest income (tax equivalent) of $63.5 million or $62.9 million excluding PPP and acquisition marks accretion, up 7.1% and 7.6%, respectively, from 2022 second quarter
• Net interest margin (tax equivalent) of 3.40% or 3.36% excluding PPP and acquisition marks accretion, up four basis points each from 2022 second quarter
• Asset quality improved with non-performing loans down 4.6% and classified loans down 7.8% from 2022 second quarter
• Declared dividend of $0.30 per share, up 7.1% from prior year comparable period

DEFIANCE, Ohio--(BUSINESS WIRE)-- Premier Financial Corp. (Nasdaq: PFC) (“Premier” or the “Company”) announced today 2022 third quarter results. Net income for the third quarter of 2022 was $28.2 million, or $0.79 per diluted common share, compared to $28.4 million, or $0.76 per diluted common share, for the third quarter of 2021.

“We are very pleased to post another strong quarter in terms of earnings and growth,” said Gary Small, President and CEO of Premier. “Year-to-date loan and deposit growth stand at 17% and 7%, respectively, while total revenue growth for the quarter totaled 8.9%, outstanding results by any historical comparison. As has been the case all year, robust commercial and consumer business segment performance continues to offset a difficult residential mortgage environment. With a number of economic factors currently affecting our clients’ financial decision-making, it is gratifying to see households continuing to thrive. Deposits continue to grow, credit quality figures continue to improve, and consumer spending is responsibly on the rise. A strong employment market is clearly helping all maneuver through these less certain times.”

Quarterly results

Strong loan and deposit growth

Gross loans including those held for sale increased $300.9 million (up 19.9% annualized) on a linked quarter basis. Loan growth occurred in each category including $151.0 million from commercial loans excluding PPP (up 15.2% annualized), $114.2 million from residential loans including held for sale (up 28.3% annualized) and $38.5 million from consumer/home equity loans (up 34.5% annualized). PPP loans decreased $3.4 million and were only $1.2 million as of September 30, 2022.

Customer deposits increased $146.3 million (up 9.0% annualized) on a linked quarter basis. Deposit growth occurred in each customer category, including $40.0 million from non-interest bearing deposits (up 9.0% annualized) and $106.3 million from interest-bearing deposits (up 9.0% annualized). Brokered deposits also added $69.9 million.

Net interest income and margin expansion

Net interest income of $63.5 million on a tax equivalent (“TE”) basis in the third quarter of 2022 was up 7.1% from $59.3 million in the second quarter of 2022 and up 10.9% from $57.3 million in the third quarter of 2021. TE net interest margin of 3.40% in the third quarter of 2022 increased four basis points from 3.36% in the second quarter of 2022 and two basis points from 3.38% in the third quarter of 2021. Results for all periods include the impact of PPP as well as acquisition marks and related accretion for the UCFC acquisition. Third quarter 2022 includes $376 thousand of accretion in interest income, $232 thousand of accretion in interest expense and $26 thousand of interest income on average balances of $1.9 million for PPP. Excluding the impact of acquisition marks accretion and PPP loans, TE net interest income was $62.9 million, up 7.6% from $58.5 million in the second quarter of 2022 and up 17.5% from $53.5 million in the third quarter of 2021. Additionally, TE net interest margin was 3.36% for the third quarter of 2022, up four basis points from 3.32% for the second quarter of 2022 and up nine basis points from 3.27% for the third quarter of 2021. These improved results are primarily due to the combination of loan growth excluding PPP as discussed above and higher loan yields excluding PPP and acquisition marks accretion, which were 4.24% for the third quarter of 2022 compared to 3.94% in the second quarter of 2022 and 3.98% in the third quarter of 2021. The third quarter increase of 30 basis points represents a beta of 21% compared to the change in the quarterly average effective Federal Funds rate that increased 141 basis points to 2.18% for the third quarter of 2022 as reported by the Federal Reserve Economic Data. The cost of funds in the third quarter of 2022 was 0.55%, up 31 basis points from both the second quarter of 2022 and the third quarter of 2021. The year-over-year increase is largely due to utilization of higher cost FHLB borrowings in support of loan growth in excess of deposit growth. The linked quarter increase is due to higher rates on FHLB borrowings, utilization of brokered deposits and higher average deposit costs. Excluding brokered deposits and acquisition marks accretion, average deposit costs increased 24 basis points to 0.39% for the third quarter of 2022, which represents a beta of 17% compared to the change in the quarterly average effective Federal Funds rate.

Non-interest income impacted mortgage banking and securities

Service fees in the third quarter of 2022 were $6.5 million, a 2.0% decrease from $6.7 million in the second quarter of 2022 but a 7.9% increase from $6.1 million in the third quarter of 2021, primarily due to fluctuations in consumer activity for interchange and ATM/NSF charges. However, total non-interest income in the third quarter of 2022 of $16.7 million was up 16.3% from $14.4 million in the second quarter of 2022 but down 9.1% from $18.4 million in the third quarter of 2021 due to fluctuations in mortgage banking and gains/losses on securities. Mortgage banking income increased $2.0 million on a linked quarter basis due to a $2.2 million increase in gains partially offset by a $0.2 million lower MSR valuation gain. Mortgage banking income for the third quarter decreased $2.2 million year-over-year due to a $2.0 million decrease in gains primarily from compressed margins and lower saleable mix and a $0.7 million lower MSR valuation gain offset by a $0.5 million benefit from lower MSR amortization. Securities gains were $43 thousand in the third quarter of 2022 from increased valuations on equity securities, compared to $1.2 million of losses on equity securities in the second quarter of 2022 and compared to $253 thousand of gains in the third quarter of 2021, comprised of $233 thousand from available-for-sale security sales gains and $20 thousand of gains on equity securities.

“Premier’s outstanding loan growth over the year has driven net interest income performance,” said Small. “Every effort was made to capture business earlier in the year as uncertainty loomed over the horizon for the later portion of 2022. The excellent pace of business through the end of Q3 has necessitated the use of more non-core funding. The combination of core and non-core funding has enabled the organization to manage deposit betas effectively while positioning us to grow deposits across all of our markets in a thoughtful manner. The velocity of rate hikes brought about by the Fed is both understandable and challenging. We at Premier are determined to create a deposit rate offering that will both reward existing clients for their business and continue to attract new business.”

Managing non-interest expenses and efficiency

Non-interest expenses in the third quarter of 2022 were $41.1 million, a 5.2% increase from $39.1 million in the second quarter of 2022 and the third quarter of 2021, primarily due to fluctuations in compensation and benefit expenses. Compensation and benefits were $24.5 million in the third quarter of 2022, compared to $22.3 million in the second quarter of 2022 and $23.4 million in the third quarter of 2021. The linked quarter increase was primarily due to lower deferred costs related to decreased loan production. The year-over-year increase was primarily due to costs related to higher staffing levels for our growth initiatives. All other non-interest expenses decreased a net $0.2 million on a linked quarter basis and increased a net $0.8 million on a year-over-year basis. The efficiency ratio for the third quarter 2022 of 51.26% improved from 52.23% in the second quarter of 2022 and from 51.85% in the third quarter of 2021, primarily due to higher revenues.

Credit quality

Non-performing assets totaled $33.6 million, or 0.41% of assets, at September 30, 2022, a decrease from $35.2 million at June 30, 2022, and from $60.1 million at September 30, 2021. Loan delinquencies increased to $13.2 million, or 0.2% of loans, at September 30, 2022, from $11.2 million at June 30, 2022, and September 30, 2021. Classified loans totaled $45.0 million, or 0.7% of loans, as of September 30, 2022, a decrease from $48.8 million at June 30, 2022, and from $90.1 million at September 30, 2021.

The 2022 third quarter results include net loan charge-offs of $153 thousand and a total provision expense of $4.0 million, compared with net loan recoveries of $256 thousand and a total provision benefit of $1.8 million for the same period in 2021. The current year provision is primarily due to higher non-PPP loan growth in the third quarter of 2022 compared to the third quarter of 2021. The allowance for credit losses as a percentage of total loans was 1.14% at September 30, 2022, compared with 1.14% at June 30, 2022, and 1.39% at September 30, 2021. The allowance for credit losses as a percentage of total loans excluding PPP and including unaccreted acquisition marks was 1.19% at September 30, 2022, compared with 1.21% at June 30, 2022, and 1.57% at September 30, 2021. The continued economic improvement following the 2020 pandemic-related downturn has resulted in a year-over-year decrease in the allowance percentages.

“We had another quarter of asset quality improvement with non-performing loans and classified loans declining 5% and 8% respectively,” said Paul Nungester, CFO of Premier. “Net charge-offs were only 0.01% of average loans and our allowance coverage level of non-performing loans increased to 213%.”

Year to date results

For the nine-month period ended September 30, 2022, net income totaled $76.9 million, or $2.15 per diluted common share, compared to $100.7 million, or $2.70 per diluted common share for the nine months ended September 30, 2021. The year-over-year comparison is primarily impacted by fluctuations in the provision for credit losses, which was an expense of $11.5 million or $0.25 per diluted share in 2022 compared to a benefit of $9.1 million or $0.19 per share in 2021. The current year’s provision expense is primarily due to loan growth, whereas the prior year’s provision benefit was primarily due to the improving economic environment following the COVID-19 pandemic-induced economic recession and reserve increase in 2020.

TE net interest income of $181.0 million in the first nine months of 2022 was up 5.9% from $170.9 million in the first nine months of 2021. TE net interest margin of 3.40% in the first nine months of 2022 increased by one basis point from 3.39% in the first nine months of 2021. Results for each period include the impact of PPP as well as acquisition marks and related accretion for the UCFC acquisition. The first nine months of 2022 include $1.3 million of accretion in interest income, $1.0 million of accretion in interest expense and $3.8 million of interest income on average balances of $15.8 million for PPP. Excluding the impact of acquisition marks accretion and PPP loans, TE net interest income was $175.1 million, up 13.1% from $154.8 million in the first nine months of 2021. Additionally, TE net interest margin was 3.29% for the first nine months of 2022, up six basis points from 3.23% for first nine months of 2021. These improved results are primarily due to loan growth excluding PPP partially offset by lower PPP income and accretion from acquisition marks. Cost of funds in the first nine months of 2022 was 0.33%, up six basis points from the first nine months of 2021. The year-over-year increase is primarily due to an increased utilization of higher cost FHLB borrowings in support of loan growth in excess of deposit growth.

Service fees in the first nine months of 2022 were $19.2 million, a 7.9% increase from $17.8 million in the first nine months of 2021, primarily due to increased consumer activity for interchange and ATM/NSF charges. However, total non-interest income in the first nine months of 2022 of $47.9 million was down from $61.7 million in the first nine months of 2021 due to fluctuations in mortgage banking, gains/losses on securities and other income. Mortgage banking income decreased $8.7 million from 2021 due to a $6.6 million decrease in gains primarily from compressed margins and lower saleable mix and a $4.0 million decrease from lower MSR valuation gains, partially offset by a $2.0 million benefit from lower MSR amortization. Securities losses were $1.8 million in the first nine months of 2022 from decreased valuations on equity securities compared to $3.0 million of net gains in the first nine months of 2021 comprised of $2.2 million from available-for-sale security sales gains and $0.8 million of gains on equity securities. Other income for the first nine months decreased $1.0 million from 2021, primarily due to a $1.3 million non-recurring settlement payment in the first nine months of 2021.

Non-interest expenses in the first nine months of 2022 were $121.5 million, a 4.9% increase from $115.8 million in the first nine months of 2021, primarily due to fluctuations in compensation and benefit expenses. Compensation and benefits were $72.4 million in the first nine months of 2022 compared to $66.4 million in the first nine months of 2021. The year-over-year increase was primarily due to costs related to higher staffing levels for our growth initiatives. All other non-interest expenses decreased a net $0.4 million on a year-over-year basis due to cost cutting initiatives. The efficiency ratio for the first nine months of 2022 was 52.67% compared to 50.44% in the first nine months of 2021, partly due to higher expenses but primarily due to lower non-interest income discussed above.

Total assets at $8.24 billion

Total assets at September 30, 2022, were $8.24 billion, compared to $8.01 billion at June 30, 2022, and $7.47 billion at September 30, 2021. Gross loans receivable were $6.21 billion at September 30, 2022, compared to $5.90 billion at June 30, 2022, and $5.27 billion at September 30, 2021. At September 30, 2022, gross loans receivable increased $938.1 million from a year ago, despite a $142.8 million decrease in PPP loans. Excluding PPP, loans grew $1.08 billion organically, or 21.1% from a year ago. Commercial loans excluding PPP increased by $651.7 million from September 30, 2021, to 2022, or 18.8%. Securities at September 30, 2022, were $1.08 billion, compared to $1.15 billion at June 30, 2022, and $1.26 billion at September 30, 2021. Also, at September 30, 2022, goodwill and other intangible assets totaled $337.9 million compared to $339.3 million at June 30, 2022, and $343.6 million at September 30, 2021, with the decreases attributable to intangibles amortization.

Total non-brokered deposits at September 30, 2022, were $6.66 billion, compared with $6.52 billion at June 30, 2022, and $6.25 billion at September 30, 2021. At September 30, 2022, customer deposits grew $146.3 million organically, or 9.0% annualized from the prior quarter and $414.0 million or 6.6% from September 30, 2021. Brokered deposits were $69.9 million at September 30, 2022, compared to none at June 30, 2022 and September 30, 2021.

Total stockholders’ equity was $0.86 billion at September 30, 2022, compared to $0.90 billion at June 30, 2022, and $1.03 billion at September 30, 2021. The quarterly decrease in stockholders’ equity was primarily due to a decrease in accumulated other comprehensive income (“AOCI”), which was primarily related to a $43.7 million negative valuation adjustment on the available-for-sale securities portfolio. No buybacks were completed during the quarter and at September 30, 2022, 1,200,130 common shares remained available for repurchase under the Company’s existing repurchase program.

Dividend to be paid November 18

The Board of Directors declared a quarterly cash dividend of $0.30 per common share payable November 18, 2022, to shareholders of record at the close of business on November 11, 2022. The dividend represents an annual dividend of 4.3 percent based on the Premier common stock closing price on October 24, 2022. Premier has approximately 35,563,000 common shares outstanding.

Conference call

Premier will host a conference call at 11:00 a.m. ET on Wednesday, October 26, 2022, to discuss the earnings results and business trends. The conference call may be accessed by calling 1-844-200-6205 and using access code 581026. Internet access to the call is also available (in listen-only mode) at the following URL: https://events.q4inc.com/attendee/880671221. The webcast replay of the conference call will be available at www.PremierFinCorp.com for one year.

About Premier Financial Corp.

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

Financial Statements and Highlights Follow-

Safe Harbor Statement

This document may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These statements may include, but are not limited to, statements regarding projections, forecasts, goals and plans of Premier Financial Corp. and its management, future movements of interests, loan or deposit production levels, future credit quality ratios, future strength in the market area, and growth projections. These statements do not describe historical or current facts and may be identified by words such as “intend,” “intent,” “believe,” “expect,” “estimate,” “target,” “plan,” “anticipate,” or similar words or phrases, or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “may,” “can,” or similar verbs. There can be no assurances that the forward-looking statements included in this presentation will prove to be accurate. In light of the significant uncertainties in the forward-looking statements, the inclusion of such information should not be regarded as a representation by Premier or any other persons, that our objectives and plans will be achieved. Forward-looking statements involve numerous risks and uncertainties, any one or more of which could affect Premier’s business and financial results in future periods and could cause actual results to differ materially from plans and projections. These risks and uncertainties include, but not limited to: impacts from the novel coronavirus (COVID-19) pandemic on the economy, financial markets, our customers, and our business and results of operation; changes in interest rates; disruptions in the mortgage market; risks and uncertainties inherent in general and local banking, insurance and mortgage conditions; political uncertainty; uncertainty in U.S. fiscal or monetary policy; uncertainty concerning or disruptions relating to tensions surrounding the current socioeconomic landscape; competitive factors specific to markets in which Premier operates; increasing competition for financial products from other financial institutions and nonbank financial technology companies; legislative or regulatory rulemaking or actions; capital market conditions; security breaches or unauthorized disclosure of confidential customer or Company information; interruptions in the effective operation of information and transaction processing systems of Premier or Premier’s vendors and service providers; failures or delays in integrating or adopting new technology; the impact of the cessation of LIBOR interest rates and implementation of a replacement rate; and other risks and uncertainties detailed from time to time in our Securities and Exchange Commission (SEC) filings, including our Annual Report on Form 10-K for the year ended December 31, 2021 and any further amendments thereto. All forward-looking statements made in this presentation are based on information presently available to the management of Premier and speak only as of the date on which they are made. We assume no obligation to update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as may be required by law. As required by U.S. GAAP, Premier will evaluate the impact of subsequent events through the issuance date of its September 30, 2022, consolidated financial statements as part of its Quarterly Report on Form 10-Q to be filed with the SEC. Accordingly, subsequent events could occur that may cause Premier to update its critical accounting estimates and to revise its financial information from that which is contained in this news release.

Non-GAAP Reporting Measures

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

Consolidated Balance Sheets (Unaudited)
Premier Financial Corp.
		September 30,				June 30,				March 31,				December 31,				September 30,
(in thousands)		2022				2022				2022				2021				2021
Assets
Cash and cash equivalents
Cash and amounts due from depositories		$	67,124			$	62,080			$	62,083			$	54,858			$	63,480
Interest-bearing deposits			37,868				72,314				91,683				106,708				51,614
			104,992				134,394				153,766				161,566				115,094
Available-for-sale, carried at fair value			1,063,713				1,140,466				1,219,365				1,206,260				1,250,087
Equity securities, carried at fair value			15,336				13,293				13,454				14,097				12,965
Securities investments			1,079,049				1,153,759				1,232,819				1,220,357				1,263,052
Loans (1)			6,207,708				5,890,823				5,388,331				5,296,168				5,269,566
Allowance for credit losses - loans			(70,626	)			(67,074	)			(67,195	)			(66,468	)			(73,217	)
Loans, net			6,137,082				5,823,749				5,321,136				5,229,700				5,196,349
Loans held for sale			129,142				145,092				153,498				162,947				178,490
Mortgage servicing rights			20,832				20,693				20,715				19,538				19,105
Accrued interest receivable			26,021				22,533				21,765				20,767				22,994
Federal Home Loan Bank stock			28,262				23,991				15,332				11,585				11,585
Bank Owned Life Insurance			169,728				168,746				167,763				166,767				166,866
Office properties and equipment			53,747				54,060				54,684				55,602				56,073
Real estate and other assets held for sale			416				462				253				171				261
Goodwill			317,948				317,948				317,948				317,948				317,948
Core deposit and other intangibles			19,972				21,311				22,691				24,129				25,612
Other assets			148,949				123,886				108,510				90,325				94,889
Total Assets		$	8,236,140			$	8,010,624			$	7,590,880			$	7,481,402			$	7,468,318
Liabilities and Stockholders’ Equity
Non-interest-bearing deposits		$	1,826,511			$	1,786,516			$	1,733,157			$	1,724,772			$	1,618,769
Interest-bearing deposits			4,836,113				4,729,828				4,584,078				4,557,279				4,629,889
Brokered deposits			69,881				-				-				-				-
Total deposits			6,732,505				6,516,344				6,317,235				6,282,051				6,248,658
Advances from FHLB			411,000				380,000				150,000				-				-
Notes payable and other interest-bearing liabilities			-				-				-				-				18,812
Subordinated debentures			85,071				85,039				85,008				84,976				84,944
Advance payments by borrowers			33,511				40,344				20,332				24,716				19,495
Reserve for credit losses - unfunded commitments			7,061				6,755				5,340				5,031				5,838
Other liabilities			102,032				80,995				69,669				61,132				58,702
Total Liabilities			7,371,180				7,109,477				6,647,584				6,457,906				6,436,449
Stockholders’ Equity
Preferred stock			-				-				-				-				-
Common stock, net			306				306				306				306				306
Additional paid-in-capital			691,578				690,905				691,350				691,132				690,783
Accumulated other comprehensive income (loss)			(181,231	)			(126,754	)			(75,497	)			(3,428	)			1,609
Retained earnings			488,305				470,779				459,087				443,517				428,518
Treasury stock, at cost			(133,998	)			(134,089	)			(131,950	)			(108,031	)			(89,347	)
Total Stockholders’ Equity			864,960				901,147				943,296				1,023,496				1,031,869
Total Liabilities and Stockholders’ Equity		$	8,236,140			$	8,010,624			$	7,590,880			$	7,481,402			$	7,468,318
(1) Includes PPP loans of:		$	1,181			$	4,561			$	18,660			$	58,906			$	143,949

Consolidated Statements of Income (Unaudited)
Premier Financial Corp.
		Three Months Ended																		Nine Months Ended
(in thousands, except per share amounts)		9/30/22			6/30/22			3/31/22			12/31/21			9/30/21						9/30/22			9/30/21
Interest Income:
Loans		$	65,559		$	56,567		$	55,241		$	55,007		$	55,443					$	177,366		$	168,781
Investment securities			6,814			6,197			5,479			5,369			5,325						18,489			13,999
Interest-bearing deposits			221			120			46			56			33						387			142
FHLB stock dividends			510			174			59			58			60						743			175
Total interest income			73,104			63,058			60,825			60,490			60,861						196,985			183,097
Interest Expense:
Deposits			6,855			2,671			2,222			2,615			3,144						11,749			10,867
FHLB advances			2,069			527			13			-			11						2,609			23
Subordinated debentures			868			763			696			673			671						2,326			2,040
Notes Payable			-			1			-			-			-						1			-
Total interest expense			9,792			3,962			2,931			3,288			3,826						16,685			12,930
Net interest income			63,312			59,096			57,894			57,202			57,035						180,300			170,167
Provision (benefit) for credit losses - loans			3,706			5,151			626			2,816			1,594						9,483			(9,549	)
Provision (benefit) for credit losses - unfunded commitments			306			1,415			309			(807	)		226						2,030			488
Total provision (benefit) for credit losses			4,012			6,566			935			2,009			1,820						11,513			(9,061	)
Net interest income after provision			59,300			52,530			56,959			55,193			55,215						168,787			179,228
Non-interest Income:
Service fees and other charges			6,545			6,676			6,000			6,351			6,067						19,221			17,817
Mortgage banking income			3,970			1,948			4,252			3,060			6,175						10,170			18,865
Gain (loss) on sale of available for sale securities			-			-			-			-			233						-			2,218
Gain (loss) on equity securities			43			(1,161	)		(643	)		1,132			20						(1,760	)		822
Insurance commissions			3,488			4,334			4,639			3,379			3,461						12,043			12,401
Wealth management income			1,355			1,414			1,477			1,383			1,321						4,246			4,644
Income from Bank Owned Life Insurance			983			983			996			2,145			947						2,961			2,975
Other non-interest income			320			171			142			129			146						1,051			2,005
Total Non-interest Income			16,704			14,365			16,863			17,579			18,370						47,932			61,747
Non-interest Expense:
Compensation and benefits			24,522			22,334			25,541			24,247			23,355						72,397			66,399
Occupancy			3,463			3,494			3,700			3,859			3,693						10,657			11,642
FDIC insurance premium			976			802			593			781			695						2,370			2,115
Financial institutions tax			1,050			1,074			1,191			526			1,187						3,315			3,553
Data processing			3,121			3,442			3,335			3,447			3,387						9,899			10,103
Amortization of intangibles			1,338			1,380			1,438			1,483			1,528						4,156			4,725
Other non-interest expense			6,629			6,563			5,497			7,145			5,256						18,689			17,300
Total Non-interest Expense			41,099			39,089			41,295			41,488			39,101						121,483			115,837
Income before income taxes			34,905			27,806			32,527			31,284			34,484						95,236			125,138
Income tax expense			6,710			5,446			6,170			5,974			6,124						18,324			24,397
Net Income		$	28,195		$	22,360		$	26,357		$	25,310		$	28,360					$	76,912		$	100,741
Earnings per common share:
Basic		$	0.79		$	0.63		$	0.73		$	0.69		$	0.76					$	2.15		$	2.70
Diluted		$	0.79		$	0.63		$	0.73		$	0.69		$	0.76					$	2.15		$	2.70
Average Shares Outstanding:
Basic			35,582			35,560			35,978			36,740			37,100						35,709			37,226
Diluted			35,704			35,682			36,090			36,848			37,185						35,818			37,311

Premier Financial Corp.
Selected Quarterly Information
(dollars in thousands, except per share data)		3Q22				2Q22				1Q22				4Q21				3Q21				YTD 2022				YTD 2021
Summary of Operations
Tax-equivalent interest income (1)		$	73,301			$	63,283			$	61,054			$	60,740			$	61,117			$	197,637			$	183,860
Interest expense			9,792				3,962				2,931				3,288				3,826				16,685				12,930
Tax-equivalent net interest income (1)			63,509				59,321				58,123				57,452				57,291				180,952				170,930
Provision expense (benefit) for credit losses			4,012				6,566				935				2,009				1,820				11,513				(9,061	)
Investment securities gains (losses)			43				(1,161	)			(643	)			1,132				253				(1,760	)			3,040
Non-interest income (ex securities gains/losses)			16,661				15,526				17,506				16,447				18,117				49,692				58,707
Non-interest expense			41,099				39,089				41,295				41,488				39,101				121,483				115,837
Income tax expense			6,710				5,446				6,170				5,974				6,124				18,324				24,397
Net income			28,195				22,360				26,357				25,310				28,360				76,912				100,741
Tax equivalent adjustment (1)			197				225				229				250				256				652				763
At Period End
Total assets		$	8,236,140			$	8,010,624			$	7,590,880			$	7,481,402			$	7,468,318
Goodwill and intangibles			337,920				339,259				340,639				342,077				343,560
Tangible assets (2)			7,898,220				7,671,365				7,250,241				7,139,325				7,124,758
Earning assets			7,411,403				7,218,905				6,881,663				6,797,765				6,774,307
Loans			6,207,708				5,890,823				5,388,331				5,296,168				5,269,566
Allowance for loan losses			70,626				67,074				67,195				66,468				73,217
Deposits			6,732,505				6,516,344				6,317,235				6,282,051				6,248,658
Stockholders’ equity			864,960				901,147				943,296				1,023,496				1,031,869
Stockholders’ equity / assets			10.50	%			11.25	%			12.43	%			13.68	%			13.82	%
Tangible equity (2)			527,040				561,888				602,657				681,419				688,309
Tangible equity / tangible assets			6.67	%			7.32	%			8.31	%			9.54	%			9.66	%
Average Balances
Total assets		$	8,161,389			$	7,742,550			$	7,541,414			$	7,510,397			$	7,529,100			$	7,807,013			$	7,473,203
Earning assets			7,477,795				7,051,661				6,754,862				6,736,250				6,773,021				7,097,421				6,730,807
Loans			6,120,324				5,667,853				5,382,825				5,356,113				5,416,696				5,726,369				5,513,285
Deposits and interest-bearing liabilities			7,116,910				6,706,250				6,415,483				6,386,341				6,422,455				6,748,783				6,384,654
Deposits			6,654,328				6,385,857				6,314,217				6,301,384				6,317,229				6,452,713				6,282,862
Stockholders’ equity			912,224				921,847				1,033,816				1,035,717				1,020,206				945,141				1,000,047
Goodwill and intangibles			338,583				339,932				341,353				342,853				344,331				339,946				345,975
Tangible equity (2)			573,641				581,915				692,463				692,864				675,875				605,195				654,072
Per Common Share Data
Net Income (Loss):
Basic		$	0.79			$	0.63			$	0.73			$	0.69			$	0.76			$	2.15			$	2.70
Diluted			0.79				0.63				0.73				0.69				0.76				2.15				2.70
Dividends Paid			0.30				0.30				0.30				0.28				0.27				0.90				0.77
Market Value:
High		$	29.36			$	30.13			$	32.52			$	34.00			$	32.72			$	32.52			$	35.90
Low			24.67				25.31				28.58				28.75				25.80				24.67				22.23
Close			25.70				25.35				30.33				30.91				31.84				25.70				31.84
Common Book Value			24.32				25.35				26.48				28.13				27.90
Tangible Common Book Value (2)			14.82				15.80				16.92				18.73				18.61
Shares outstanding, end of period (000s)			35,563				35,555				35,621				36,384				36,978
Performance Ratios (annualized)
Tax-equivalent net interest margin (1)			3.40	%			3.36	%			3.44	%			3.41	%			3.38	%			3.40	%			3.39	%
Return on average assets			1.37	%			1.16	%			1.42	%			1.34	%			1.49	%			1.32	%			1.80	%
Return on average equity			12.26	%			9.73	%			10.34	%			9.70	%			11.03	%			10.88	%			13.47	%
Return on average tangible equity			19.50	%			15.41	%			15.44	%			14.49	%			16.65	%			16.99	%			20.59	%
Efficiency ratio (3)			51.26	%			52.23	%			54.60	%			56.14	%			51.85	%			52.67	%			50.44	%
Effective tax rate			19.22	%			19.59	%			18.97	%			19.10	%			17.76	%			19.24	%			19.50	%
Common dividend payout ratio			37.97	%			47.62	%			41.10	%			40.58	%			35.53	%			41.86	%			28.52	%
(1) Interest income on tax-exempt securities and loans has been adjusted to a tax-equivalent basis using the statutory federal income tax rate of 21%.
(2) Tangible assets = total assets less the sum of goodwill and core deposit and other intangibles. Tangible equity = total stockholders' equity less the sum of goodwill, core deposit and other intangibles, and preferred stock. Tangible common book value = tangible equity divided by shares outstanding at the end of the period.
(3) Efficiency ratio = Non-interest expense divided by sum of tax-equivalent net interest income plus non-interest income, excluding securities gains or losses, net.

Premier Financial Corp.
Yield Analysis
(dollars in thousands)
		Three Months Ended																	Nine Months Ended
		9/30/22			6/30/22			3/31/22			12/31/21			9/30/21					9/30/22			9/30/21
Average Balances
Interest-earning assets:
Loans receivable (1)		$	6,120,324		$	5,667,853		$	5,382,825		$	5,356,113		$	5,416,696				$	5,726,369		$	5,513,285
Securities			1,261,527			1,288,073			1,250,321			1,245,096			1,273,148					1,266,681			1,098,478
Interest Bearing Deposits			68,530			76,401			109,757			123,456			71,276					84,745			107,381
FHLB stock			27,414			19,334			11,959			11,585			11,901					19,626			11,663
Total interest-earning assets			7,477,795			7,051,661			6,754,862			6,736,250			6,773,021					7,097,421			6,730,807
Non-interest-earning assets			683,594			690,889			786,552			774,147			756,079					709,592			742,396
Total assets		$	8,161,389		$	7,742,550		$	7,541,414		$	7,510,397		$	7,529,100				$	7,807,013		$	7,473,203
Deposits and Interest-bearing Liabilities:
Interest bearing deposits		$	4,846,419		$	4,614,223		$	4,600,801		$	4,609,064		$	4,649,462				$	4,688,047		$	4,612,354
FHLB advances and other			377,533			234,945			16,278			-			20,098					210,908			16,828
Subordinated debentures			85,049			85,020			84,988			84,957			84,924					85,019			84,895
Notes payable			-			428			-			-			204					143			69
Total interest-bearing liabilities			5,309,001			4,934,616			4,702,067			4,694,021			4,754,688					4,984,117			4,714,146
Non-interest bearing deposits			1,807,909			1,771,634			1,713,416			1,692,320			1,667,767					1,764,666			1,670,508
Total including non-interest-bearing deposits			7,116,910			6,706,250			6,415,483			6,386,341			6,422,455					6,748,783			6,384,654
Other non-interest-bearing liabilities			132,255			114,453			92,115			88,339			86,439					113,089			88,502
Total liabilities			7,249,165			6,820,703			6,507,598			6,474,680			6,508,894					6,861,872			6,473,156
Stockholders' equity			912,224			921,847			1,033,816			1,035,717			1,020,206					945,141			1,000,047
Total liabilities and stockholders' equity		$	8,161,389		$	7,742,550		$	7,541,414		$	7,510,397		$	7,529,100				$	7,807,013		$	7,473,203
Average interest-earning assets to interest-bearing liabilities			141	%		143	%		144	%		144	%		142	%				142	%		143	%
Interest Income/Expense
Interest-earning assets:
Loans receivable (2)		$	65,564		$	56,573		$	55,248		$	55,013		$	55,444				$	177,385		$	168,810
Securities (2)			7,006			6,416			5,701			5,612			5,580					19,122			14,733
Interest Bearing Deposits			221			120			46			56			33					387			142
FHLB stock			510			174			59			59			60					743			175
Total interest-earning assets			73,301			63,283			61,054			60,740			61,117					197,637			183,860
Deposits and Interest-bearing Liabilities:
Interest bearing deposits		$	6,855		$	2,671		$	2,222		$	2,615		$	3,144				$	11,749		$	10,867
FHLB advances and other			2,069			527			13			-			11					2,609			23
Subordinated debentures			868			763			696			673			671					2,326			2,040
Notes payable			-			1			-			-			-					1			-
Total interest-bearing liabilities			9,792			3,962			2,931			3,288			3,826					16,685			12,930
Non-interest bearing deposits			-			-			-			-			-					-			-
Total including non-interest-bearing deposits			9,792			3,962			2,931			3,288			3,826					16,685			12,930
Net interest income		$	63,509		$	59,321		$	58,123		$	57,452		$	57,291				$	180,952		$	170,930
Less: PPP income			(26	)		(160	)		(3,641	)		(2,686	)		(2,887	)				(3,827	)		(11,858	)
Less: Acquisition marks accretion			(608	)		(706	)		(737	)		(1,595	)		(879	)				(2,051	)		(4,274	)
Core net interest income		$	62,875		$	58,455		$	53,745		$	53,171		$	53,525				$	175,074		$	154,798
Average Rates (3)
Interest-earning assets:
Loans receivable			4.29	%		3.99	%		4.11	%		4.11	%		4.09	%				4.13	%		4.08	%
Securities (4)			2.22	%		1.99	%		1.82	%		1.80	%		1.75	%				2.01	%		1.79	%
Interest Bearing Deposits			1.29	%		0.63	%		0.17	%		0.18	%		0.19	%				0.61	%		0.18	%
FHLB stock			7.44	%		3.60	%		1.97	%		2.04	%		2.02	%				5.05	%		2.00	%
Total interest-earning assets			3.92	%		3.59	%		3.62	%		3.61	%		3.61	%				3.71	%		3.64	%
Deposits and Interest-bearing Liabilities:
Interest bearing deposits			0.57	%		0.23	%		0.19	%		0.23	%		0.27	%				0.33	%		0.31	%
FHLB advances and other			2.19	%		0.90	%		0.32	%		0.00	%		0.22	%				1.65	%		0.18	%
Subordinated debentures			4.08	%		3.59	%		3.28	%		3.17	%		3.16	%				3.65	%		3.20	%
Notes payable			0.00	%		0.93	%		-			-			0.75	%				0.93	%		0.75	%
Total interest-bearing liabilities			0.74	%		0.32	%		0.25	%		0.28	%		0.32	%				0.45	%		0.37	%
Non-interest bearing deposits			-			-			-			-			-					-			-
Total including non-interest-bearing deposits			0.55	%		0.24	%		0.18	%		0.21	%		0.24	%				0.33	%		0.27	%
Net interest spread			3.18	%		3.27	%		3.37	%		3.33	%		3.29	%				3.26	%		3.27	%
Net interest margin (5)			3.40	%		3.36	%		3.44	%		3.41	%		3.38	%				3.40	%		3.39	%
Core net interest margin (5)			3.36	%		3.32	%		3.20	%		3.21	%		3.27	%				3.29	%		3.23	%
(1) Includes average PPP loans of:		$	1,889		$	12,966		$	32,853		$	101,804		$	219,366				$	15,790		$	343,653
(2) Interest on certain tax exempt loans and securities is not taxable for Federal income tax purposes. In order to compare the tax-exempt yields on these assets to taxable yields, the interest earned on these assets is adjusted to a pre-tax equivalent amount based on the marginal corporate federal income tax rate of 21%.
(3) Annualized.
(4) Securities yield = annualized interest income divided by the average balance of securities, excluding average unrealized gains/losses.
(5) Net interest margin is tax equivalent net interest income divided by average interest-earning assets. Core net interest margin represents net interest margin excluding PPP and acquisition marks accretion.

Premier Financial Corp.
Loans and Deposits Composition
(dollars in thousands)
		3Q22			2Q22			1Q22			4Q21			3Q21
Loan Portfolio Composition
Residential real estate		$	1,478,360		$	1,382,202		$	1,222,057		$	1,167,466		$	1,129,877
Residential real estate construction			119,204			85,256			97,746			121,621			140,798
Total residential loans			1,597,564			1,467,458			1,319,803			1,289,087			1,270,675
Commercial real estate			2,674,078			2,655,730			2,495,469			2,450,349			2,389,759
Commercial construction			398,044			319,590			260,421			263,304			263,354
Commercial excluding PPP			1,041,423			987,242			891,893			836,732			808,780
Core commercial loans (1)			4,113,545			3,962,562			3,647,783			3,550,385			3,461,893
Consumer direct/indirect			212,790			180,539			132,294			126,417			125,163
Home equity and improvement lines			272,367			266,144			261,176			264,354			264,140
Total consumer loans			485,157			446,683			393,470			390,771			389,303
Deferred loan origination fees			10,261			9,559			8,615			7,019			3,746
Core loans (1)			6,206,527			5,886,262			5,369,671			5,237,262			5,125,617
PPP loans			1,181			4,561			18,660			58,906			143,949
Total loans		$	6,207,708		$	5,890,823		$	5,388,331		$	5,296,168		$	5,269,566
Loans held for sale		$	129,142		$	145,092		$	153,498		$	162,947		$	178,490
Core residential loans (1)			1,726,706			1,612,550			1,473,301			1,452,034			1,449,165
Total loans including loans held for sale but excluding PPP			6,335,669			6,031,354			5,523,169			5,400,209			5,304,107
Undisbursed construction loan funds - residential		$	231,598		$	239,748		$	210,702		$	204,772		$	209,054
Undisbursed construction loan funds - commercial			493,199			449,101			314,843			273,118			272,380
Undisbursed construction loan funds - total			724,797			688,849			525,545			477,890			481,434
Total construction loans including undisbursed funds		$	1,242,045		$	1,093,695		$	883,712		$	862,815		$	885,586
Gross loans (2)		$	6,922,244		$	6,570,113		$	5,905,261		$	5,767,039		$	5,747,254
Deposit Portfolio Composition
Non-interest-bearing demand deposits		$	1,826,511		$	1,786,516		$	1,733,157		$	1,724,772		$	1,618,769
Interest-bearing demand deposits and money market			3,197,455			3,106,306			3,029,260			2,952,705			2,962,032
Savings deposits			820,650			832,859			830,143			804,451			786,929
Retail time deposits less than $250			550,275			532,836			586,967			636,477			692,224
Retail time deposits greater than $250			267,733			257,827			137,708			163,646			188,704
Brokered deposits			69,881			-			-			-			-
Total deposits		$	6,732,505		$	6,516,344		$	6,317,235		$	6,282,051		$	6,248,658
(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
September 30, 2022
One to four family residential real estate		$	1,478,360		$	1,464,319		$	6,232		0.4	%		$	7,809		0.5	%
Construction			1,242,045			1,242,045			-		0.0	%			-		0.0	%
Commercial real estate			2,674,078			2,660,068			116		0.0	%			13,894		0.5	%
Commercial			1,042,604			1,034,898			338		0.0	%			7,368		0.7	%
Home equity and improvement			272,367			267,077			3,144		1.2	%			2,146		0.8	%
Consumer finance			212,790			207,453			3,417		1.6	%			1,920		0.9	%
Gross loans		$	6,922,244		$	6,875,860		$	13,247		0.2	%		$	33,137		0.5	%
June 30, 2022
One to four family residential real estate		$	1,382,202		$	1,367,037		$	7,176		0.5	%		$	7,989		0.6	%
Construction			1,093,695			1,093,695			-		0.0	%			-		0.0	%
Commercial real estate			2,655,730			2,641,216			1		0.0	%			14,513		0.5	%
Commercial			991,803			984,065			-		0.0	%			7,738		0.8	%
Home equity and improvement			266,144			261,576			1,943		0.7	%			2,625		1.0	%
Consumer finance			180,539			176,608			2,061		1.1	%			1,870		1.0	%
Gross loans		$	6,570,113		$	6,524,197		$	11,181		0.2	%		$	34,735		0.5	%
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	%
Home equity and improvement			264,140			259,175			1,848		0.7	%			3,117		1.2	%
Consumer finance			125,163			121,580			1,792		1.4	%			1,791		1.4	%
Gross loans		$	5,747,254		$	5,676,177		$	11,212		0.2	%		$	59,865		1.0	%
Loan Risk Ratings Information
(dollars in thousands)		Total Balance			Pass Rated			Special Mention			% of Total			Classified			% of Total
September 30, 2022
One to four family residential real estate		$	1,466,470		$	1,458,082		$	1,267		0.1	%		$	7,121		0.5	%
Construction			1,242,045			1,240,745			1,300		0.1	%			-		0.0	%
Commercial real estate			2,672,451			2,584,984			65,233		2.4	%			22,234		0.8	%
Commercial			1,036,441			1,009,384			20,106		1.9	%			6,951		0.7	%
Home equity and improvement			269,786			268,384			-		0.0	%			1,402		0.5	%
Consumer finance			212,493			210,602			-		0.0	%			1,891		0.9	%
PCD loans			22,558			17,044			93		0.4	%			5,421		24.0	%
Gross loans		$	6,922,244		$	6,789,225		$	87,999		1.3	%		$	45,020		0.7	%
June 30, 2022
One to four family residential real estate		$	1,370,167		$	1,361,875		$	1,244		0.1	%		$	7,048		0.5	%
Construction			1,093,695			1,093,695			-		0.0	%			-		0.0	%
Commercial real estate			2,654,003			2,551,971			77,224		2.9	%			24,808		0.9	%
Commercial			984,972			956,229			21,428		2.2	%			7,315		0.7	%
Home equity and improvement			263,330			261,530			-		0.0	%			1,800		0.7	%
Consumer finance			180,183			178,346			-		0.0	%			1,837		1.0	%
PCD loans			23,763			17,632			95		0.4	%			6,036		25.4	%
Gross loans		$	6,570,113		$	6,421,278		$	99,991		1.5	%		$	48,844		0.7	%
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	%
Home equity and improvement			260,408			258,575			-		0.0	%			1,833		0.7	%
Consumer finance			124,525			122,956			-		0.0	%			1,569		1.3	%
PCD loans			35,744			18,793			102		0.3	%			16,849		47.1	%
Gross loans		$	5,747,254		$	5,498,672		$	158,491		2.8	%		$	90,091		1.6	%

Premier Financial Corp.
Selected Quarterly Information
(dollars in thousands)
	As of and for the three months ended																Nine months ended
Mortgage Banking Summary	9/30/22			6/30/22			3/31/22			12/31/21			9/30/21				9/30/22			9/30/21
Revenue from sales and servicing of mortgage loans:
Mortgage banking gains, net	$	3,363		$	1,166		$	2,543		$	2,774		$	5,353			$	7,072		$	13,663
Mortgage loan servicing revenue (expense):
Mortgage loan servicing revenue		1,861			1,862			1,879			1,909			1,861				5,602			5,665
Amortization of mortgage servicing rights		(1,350	)		(1,375	)		(1,403	)		(1,774	)		(1,822	)			(4,128	)		(6,119	)
Mortgage servicing rights valuation adjustments		96			295			1,233			151			783				1,624			5,656
		607			782			1,709			286			822				3,098			5,202
Total revenue from sale/servicing of mortgage loans	$	3,970		$	1,948		$	4,252		$	3,060		$	6,175			$	10,170		$	18,865
Mortgage servicing rights:
Balance at beginning of period	$	21,872		$	22,189		$	22,244		$	21,963		$	21,682			$	22,244		$	21,666
Loans sold, servicing retained		1,393			1,058			1,348			2,056			2,103				3,799			6,415
Amortization		(1,350	)		(1,375	)		(1,403	)		(1,774	)		(1,822	)			(4,128	)		(6,119	)
Balance at end of period		21,915			21,872			22,189			22,245			21,963				21,915			21,962
Valuation allowance:
Balance at beginning of period		(1,179	)		(1,474	)		(2,707	)		(2,858	)		(3,641	)			(2,707	)		(8,513	)
Impairment recovery (charges)		96			295			1,233			151			783				1,624			5,656
Balance at end of period		(1,083	)		(1,179	)		(1,474	)		(2,707	)		(2,858	)			(1,083	)		(2,857	)
Net carrying value at end of period	$	20,832		$	20,693		$	20,715		$	19,538		$	19,105			$	20,832		$	19,105
Allowance Summary
Beginning allowance	$	67,074		$	67,195		$	66,468		$	73,217		$	71,367			$	66,468		$	82,079
Provision (benefit) for credit losses - loans		3,706			5,151			626			2,816			1,594				9,483			(9,549	)
Net recoveries (charge-offs)		(154	)		(5,272	)		101			(9,565	)		256				(5,325	)		687
Ending allowance	$	70,626		$	67,074		$	67,195		$	66,468		$	73,217			$	70,626		$	73,217
Total loans	$	6,207,708		$	5,890,823		$	5,388,331		$	5,296,168		$	5,269,566
Less: PPP loans		(1,181	)		(4,561	)		(18,660	)		(58,906	)		(143,949	)
Total loans ex PPP	$	6,206,527		$	5,886,262		$	5,369,671		$	5,237,262		$	5,125,617
Allowance for credit losses (ACL)	$	70,626		$	67,074		$	67,195		$	66,468		$	73,217
Add: Unaccreted purchase accounting marks		3,291			3,924			4,652			5,418			7,109
Adjusted ACL	$	73,917		$	70,998		$	71,847		$	71,886		$	80,326
ACL/Loans		1.14	%		1.14	%		1.25	%		1.26	%		1.39	%
Adjusted ACL/Loans ex PPP		1.19	%		1.21	%		1.34	%		1.37	%		1.57	%
Credit Quality
Total non-performing loans (1)	$	33,137		$	34,735		$	47,298		$	48,014		$	59,865
Real estate owned (REO)		416			462			253			171			261
Total non-performing assets (2)	$	33,553		$	35,197		$	47,551		$	48,185		$	60,126
Net charge-offs (recoveries)		154			5,272			(101	)		9,565			(256	)
Restructured loans, accruing (3)		6,909			5,899			6,287			7,768			6,503
Allowance for credit losses - loans / loans		1.14	%		1.14	%		1.25	%		1.26	%		1.39	%
Allowance for credit losses - loans / non-performing assets		210.49	%		190.57	%		141.31	%		137.94	%		121.77	%
Allowance for credit losses - loans / non-performing loans		213.13	%		193.10	%		142.07	%		138.43	%		122.30	%
Non-performing assets / loans plus REO		0.54	%		0.60	%		0.88	%		0.91	%		1.14	%
Non-performing assets / total assets		0.41	%		0.44	%		0.63	%		0.64	%		0.81	%
Net charge-offs / average loans (annualized)		0.01	%		0.37	%		-0.01	%		0.71	%		-0.02	%
Net charge-offs / average loans LTM		0.26	%		0.27	%		0.17	%		0.16	%		0.00	%
(1) Non-performing loans consist of non-accrual loans.
(2) Non-performing assets are non-performing loans plus real estate and other assets acquired by foreclosure or deed-in-lieu thereof.
(3) Accruing restructured loans are loans with known credit problems that are not contractually past due and therefore are not included in non-performing loans.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20221025005928/en/

Paul Nungester

EVP and CFO 419.785.8700

PNungester@yourpremierbank.com

Source: Premier Financial Corp.

FAQ

What were the loan growth figures for Premier Financial Corp. in Q3 2022?

Loan growth for Q3 2022 was $300.9 million, or 19.9% annualized.

How much did customer deposits increase in Q3 2022 for PFC?

Customer deposits increased by $146.3 million, a 9.0% annualized growth.

What is the net interest income for Premier Financial Corp. in Q3 2022?

Net interest income was $63.5 million, reflecting a 7.1% increase from the previous quarter.

When is the dividend payment for PFC and what is the amount?

A quarterly dividend of $0.30 per share will be paid on November 18, 2022.

How did non-performing loans change for PFC in Q3 2022?

Non-performing loans decreased by 4.6% compared to the previous quarter.