Premier Financial Corp. Announces Second Quarter 2024 Results and Strategic Merger with Wesbanco, Inc.

Share Name	Share Symbol	Market	Type
Premier Financial Corporation	NASDAQ:PFC	NASDAQ	Common Stock

	Price Change	% Change	Share Price	Bid Price	Offer Price	High Price	Low Price	Open Price	Shares Traded	Last Trade
	0.00	0.00%	25.75	10.30	26.00				4	10:57:56

Premier Financial (NASDAQ:PFC)
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Premier Financial Corp. (Nasdaq: PFC) (“Premier” or the “Company”) announced today 2024 second quarter results and the signing of a definitive merger agreement with Wesbanco, Inc. (Nasdaq: WSBC).

Strategic Merger

On July 26, 2024, PFC and WSBC announced the signing of a definitive merger agreement under which PFC will merge into WSBC in a stock-for-stock transaction. Under the terms of the merger agreement, shareholders of PFC will receive 0.80 shares of WSBC common stock for each share of PFC common stock. Premier Bank, a wholly owned subsidiary of PFC, will merge into Wesbanco Bank, Inc., a wholly owned subsidiary of WSBC. Based upon a closing price for WSBC as of July 25, 2024 of $34.28, the transaction is valued at approximately $987 million, or $27.42 per common share of PFC. Upon closing, PFC shareholders will own approximately 30% of the combined company. The transaction is expected to close in the first quarter of 2025, subject to the approval of shareholders of both PFC and WSBC and regulatory approvals, as well as satisfaction or waiver of other customary closing conditions. Additional information can be found in the press release announcing the merger dated July 26, 2024.

Quarterly results

Net income for the second quarter of 2024 was $16.2 million, or $0.45 per diluted common share, compared to income of $48.4 million, or $1.35 per diluted common share, for the second quarter of 2023. Second quarter 2023 results included the impact of the disposition of the Company’s insurance agency, First Insurance Group (“FIG”), for a net gain on sale after transaction costs of $32.6 million pre-tax or $0.67 per diluted common share after-tax. Excluding the impact of this transaction, second quarter 2023 earnings were $24.2 million or $0.68 per diluted common share.

Net interest income and margin

Net interest income of $49.3 million on a tax equivalent (“TE”) basis in the second quarter of 2024 was down 0.7% from $49.6 million in the first quarter of 2024 and down 8.8% from $54.1 million in the second quarter of 2023. The TE net interest margin of 2.46% in the second quarter of 2024 decreased four basis points from 2.50% in the first quarter of 2024 and 26 basis points from 2.72% in the second quarter of 2023. These results are primarily impacted by changes in deposit balances/costs and loan balances/yields.

Total deposits decreased $4.8 million during the second quarter of 2024 from the first quarter of 2024 due to an $18.7 million decrease in customer deposits offset partly by an increase of $13.9 million in brokered deposits. Total average interest-bearing deposit costs increased nine basis points to 3.10% during the second quarter of 2024 from the first quarter of 2024. This increase was primarily due to new customer acquisitions and the migration of customers from non-interest-bearing deposits into interest-bearing deposits, including higher cost time deposits, as customers continue to seek better yields. Total average customer deposit costs including non-interest bearing and excluding brokered deposits and acquisition marks were 2.33% during the month of June, representing a cumulative beta of 41% compared to the change in the monthly average effective Federal Funds rate that increased 525 basis points to 5.33% since December 2021, as reported by the Federal Reserve Economic Data. Beginning in March 2024 and through June 2024, management implemented rate reductions in certain higher-cost deposit tiers. The benefit of those actions began to be realized in June 2024 as the 2.33% average cost noted above was a decline of two basis points from the prior month.

Total loans including held-for-sale decreased $10.5 million, during the second quarter of 2024, primarily due to a $14.7 million decrease in residential loans including held-for-sale. Total average loan yields increased seven basis points to 5.26% for the second quarter of 2024. This increase was primarily due to origination of higher yielding loans and payoffs of lower yielding loans. Total average loan yields excluding PPP, balance sheet hedges and acquisition marks were 5.36% during the month of June (up seven basis points from 5.29% in March), representing a cumulative beta of 31% compared to the change in the monthly average effective Federal Funds rate for the same period.

Non-interest income

Total non-interest income in the second quarter of 2024 of $12.1 million was down 3.3% from $12.5 million in the first quarter of 2024, and down 6.5% from $12.9 million in the second quarter of 2023, excluding insurance commissions and the gain on sale of insurance agency, primarily due to fluctuations in mortgage banking income. Mortgage banking income decreased $0.3 million on a linked quarter basis and $0.9 million from second quarter 2023, primarily as a result of fluctuations in gain on sale margins and MSR valuation adjustments.

Security losses were $176 thousand in the second quarter of 2024, compared to losses of $37 thousand in the first quarter of 2024 and gains of $64 thousand in the second quarter of 2023, primarily due to valuation changes on equity securities. Service fees in the second quarter of 2024 were $7.0 million, an 8.4% increase from $6.5 million in the first quarter of 2024, but a 2.5% decrease from $7.2 million in the second quarter of 2023. This change was primarily due to fluctuations in loan fees, including commercial customer swap activity. Due to the insurance agency sale on June 30, 2023, there were no insurance commissions in the second quarter of 2024, compared to $4.1 million in the second quarter of 2023. Wealth management income of $1.8 million in the second quarter of 2024 was up slightly from $1.7 million in the first quarter of 2024 and 19.8% higher than $1.5 million in the second quarter of 2023. BOLI income of $1.2 million in the second quarter of 2024 included no claim gains, compared to $1.7 million in the first quarter of 2024, including $0.5 million of claim gains, and $1.0 million in the second quarter of 2023 with no claim gains.

Non-interest expenses

Non-interest expenses excluding transaction costs in the second quarter of 2024 were $38.2 million, a 4.4% decrease from $39.9 million in the first quarter of 2024, and a 6.6% decrease from $40.8 million in the second quarter of 2023, excluding transaction costs for the insurance agency sale. Compensation and benefits were $21.4 million in the second quarter of 2024, compared to $23.4 million in the first quarter of 2024 and $24.2 million in the second quarter of 2023. The linked quarter decrease was primarily due to lower staffing and items that occur annually in the first quarter. The year-over-year decrease was primarily due to the insurance agency sale, partially offset by costs related to higher staffing levels and higher base compensation, including 2024 annual merit adjustments. Data processing costs were $5.1 million in the second quarter of 2024, compared to $4.7 million in the first quarter of 2024 and $3.6 million in the second quarter of 2023, with the year-over-year increase primarily due to the new digital platform launched in October 2023. All other non-interest expenses decreased a net $0.1 million on a linked quarter basis due to cost saving initiatives and decreased a net $1.3 million from second quarter 2023 due to the insurance agency sale and cost saving initiatives. The core efficiency ratio for the second quarter of 2024 was 62.0% compared to 64.2% in the first quarter of 2024 and 57.5% in the second quarter of 2023. The ratio of core non-interest expenses to average assets improved to 1.78% for the second quarter of 2024 from 1.87% for the first quarter of 2024 and from 1.91% for the second quarter of 2023.

Credit quality

Non-performing assets totaled $64.6 million, or 0.74% of assets, at June 30, 2024, an increase from $39.3 million at March 31, 2024, and from $37.6 million at June 30, 2023. The increase was primarily due to one large commercial credit that was previously reported in classified loans. Loan delinquencies increased to $24.6 million, or 0.36% of loans, at June 30, 2024, from $18.3 million at March 31, 2024, and from $19.0 million at June 30, 2023. Criticized loans totaled $207.8 million, or 3.04% of loans, as of June 30, 2024, an increase from $191.5 million at March 31, 2024, and from $121.2 million at June 30, 2023.

The 2024 second quarter results include net charge-offs of $2.6 million and a total provision expense of $2.9 million, compared with net loan recoveries of $0.2 million and a total provision expense of $0.5 million for the same period in 2023. The change in provision is primarily due to higher charge-offs. The allowance for credit losses as a percentage of total loans was 1.16% at June 30, 2024, compared with 1.15% at March 31, 2024, and 1.13% at June 30, 2023.

Year to date results

Net income for the first half of 2024 was $34.0 million, or $0.95 per diluted common share, compared to income of $66.5 million, or $1.86 per diluted common share for the first half of 2023. First half 2023 results included the impact of the insurance agency sale for a net gain on sale after transaction costs of $32.6 million pre-tax or $0.67 per diluted common share after-tax. Excluding the impact of this item, first half 2023 earnings were income of $42.4 million or $1.19 per diluted common share.

Net interest income of $98.9 million on a TE basis for the first half of 2024 was down 10.4% from $110.4 million in the first half of 2023. The TE net interest margin of 2.48% in the first half of 2024 decreased 33 basis points from 2.81% in the first half of 2023. These results are positively impacted by the combination of loan growth and higher loan yields, which were 5.23% for the first half of 2024 compared to 4.76% in the first half of 2023. These results are negatively impacted by increase in the cost of funds in the first half of 2024 of 2.56%, up 84 basis points from the first half of 2023. The year-over-year increase is largely due to increasing costs of customer deposits and higher utilization of FHLB borrowings.

Total non-interest income in the first half of 2024 of $24.6 million was up 19.0% from $20.7 million in the first half of 2023, excluding insurance commissions and the gain on the sale of the insurance agency. Mortgage banking income increased $1.7 million year-over-year primarily as a result of a $1.3 million increase in gains due to better margins.

Security losses were $0.2 million in the first half of 2024 compared to $1.3 million in the first half of 2023, primarily due to valuations on equity securities. The company also sold $21 million of AFS securities for a $27 thousand gain with average yields less than FHLB borrowing rates during the first half of 2023. Service fees in the first half of 2024 were $13.5 million, a 1.1% decrease from $13.6 million in the first half of 2023, primarily due to fluctuations in loan fees including commercial customer swap activity and consumer activity for interchange and ATM/NSF charges. Due to the insurance agency sale on June 30, 2023, there were no insurance commissions in the first half of 2024, compared to $8.9 million in the first half of 2023. Wealth management income of $3.6 million in the first half of 2024 was up 17.7% from $3.0 million in the first half of 2023. BOLI income of $2.9 million in the first half of 2024 included $0.5 million of claim gains, compared to $2.4 million in the first half of 2023, including $0.4 million of claim gains.

Non-interest expenses excluding transaction costs in the first half of 2024 were $78.1 million, a 6.7% decrease from $83.6 million in the first half of 2023. Compensation and benefits were $44.7 million in the first half of 2024, compared to $49.8 million in the first half of 2023. The year-over-year decrease was primarily due to the insurance agency sale, partially offset by costs related to higher staffing levels and higher base compensation, including 2024 annual merit adjustments. FDIC premiums decreased $0.8 million on a year-over-year basis primarily due to lower rates. Data processing costs were $9.7 million in the first half of 2024, compared to $7.5 million in the first half of 2023, with the year-over-year increase primarily due to the new digital platform launched in October 2023. All other non-interest expenses decreased a net $1.9 million on a year-over-year basis due to the insurance agency sale and cost saving initiatives. The core efficiency ratio for the first half of 2024 of 63.1% increased from 59.2% in the first half of 2023 due to lower revenues partly offset by cost saving initiatives that began during the second quarter of 2023. The ratio of core non-interest expenses to average assets improved to 1.82% for the first half of 2024 from 1.98% for the first half of 2023.

The 2024 first half results include net loan charge-offs of $3.0 million and a total provision expense of $2.8 million, compared with net loan charge-offs of $2.2 million and a total provision expense of $4.2 million for the same period in 2023. The year-over-year change in provision expense is primarily due to a decrease in loans during the first half of 2024 compared to an increase in loans during the first half of 2023.

Total assets at $8.78 billion

Total assets at June 30, 2024, were $8.78 billion, compared to $8.63 billion at March 31, 2024, and $8.62 billion at June 30, 2023. Loans receivable were $6.68 billion at June 30, 2024, compared to $6.69 billion at March 31, 2024, and $6.71 billion at June 30, 2023. Securities at June 30, 2024, were $1.09 billion, compared to $1.02 billion at March 31, 2024, and $0.97 billion at June 30, 2023. All securities are either AFS or trading and are reflected at fair value on the balance sheet. Also, at June 30, 2024, goodwill and other intangible assets totaled $305.9 million compared to $306.8 million at March 31, 2024, and $309.9 million at June 30, 2023, with the decreases due to amortization of intangibles.

Total non-brokered deposits at June 30, 2024, were $6.80 billion, compared with $6.81 billion at March 31, 2024, and $6.58 billion at June 30, 2023. Brokered deposits were $382.7 million at June 30, 2024, compared to $368.8 million at March 31, 2024 and $413.2 million at June 30, 2023. FHLB borrowings increased to $393.0 million at June 30, 2024, from $253.0 million at March 31, 2024, but decreased from $455.0 million at June 30, 2023. On June 28, 2024, $50 million of deposits were received late in the day and used to paydown FHLB borrowings on July 1, 2024.

Total stockholders’ equity was $979.1 million at June 30, 2024, compared to $974.3 million at March 31, 2024, and $937.0 million at June 30, 2023, with the increases primarily due to net earnings in excess of dividends. Excluding goodwill and intangibles, tangible equity was $673.3 million at June 30, 2024, an increase from $667.5 million at March 31, 2024, and from $627.1 million at June 30, 2023.

Regulatory ratios all improved during the second quarter of 2024, including CET1 of 11.91%, Tier 1 of 12.41% and Total Capital of 14.25%. All of these ratios also exceed well-capitalized guidelines pro forma for including accumulated other comprehensive income (“AOCI”), including CET1 of 9.61%, Tier 1 of 10.10% and Total Capital of 11.95%.

Dividend to be paid August 16

The Board of Directors declared a quarterly cash dividend of $0.31 per common share payable August 16, 2024, to shareholders of record at the close of business on August 9, 2024. The dividend represents an annual dividend yield of 4.9% percent based on the Premier common stock closing price on July 25, 2024. Premier has approximately 35,839,000 common shares outstanding.

Conference call canceled

Premier will no longer host its previously planned conference call at 10:00 a.m. ET on Wednesday, July 31, 2024.

About Premier Financial Corp.

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

Financial Statements and Highlights Follow-

Safe Harbor Statement

This document may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These statements may include, but are not limited to, statements regarding projections, forecasts, goals and plans of Premier Financial Corp. (“Premier”) and its management, and include statements related to the expected timing, completion and benefits of the proposed merger with WesBanco, Inc. (“WesBanco”) (the ‘Merger”), future movements of interest rates, loan or deposit production levels, future credit quality ratios, future strength in the market area, and growth projections. These statements do not describe historical or current facts and may be identified by words such as “intend,” “intent,” “believe,” “expect,” “estimate,” “target,” “plan,” “anticipate,” or similar words or phrases, or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “may,” “can,” or similar verbs. There can be no assurances that the forward-looking statements included in this document will prove to be accurate. In light of the significant uncertainties in the forward-looking statements, the inclusion of such information should not be regarded as a representation by Premier or any other persons, that our objectives and plans will be achieved, including with respect to the Merger. Forward-looking statements involve numerous risks and uncertainties, any one or more of which could affect Premier’s business and financial results in future periods and could cause actual results to differ materially from plans and projections. Factors that could cause or contribute to such differences include, but are not limited to, (1) the businesses of Premier and WesBanco may not be integrated successfully or such integration may take longer to accomplish than expected, (2) the expected cost savings and any revenue synergies from the proposed Merger may not be fully realized within the expected timeframes, (3) disruption from the proposed Merger may make it more difficult to maintain relationships with customers, associates, or suppliers, (4) the required governmental approvals of the proposed Merger may not be obtained on the expected terms and schedule, (5) Premier’s shareholders and/or WesBanco’s shareholders may not approve the proposed Merger and the merger agreement, and WesBanco’s shareholders may not approve the issuance of shares of WesBanco common stock in the proposed Merger. Further information regarding additional factors that could affect the forward-looking statements can be found in the cautionary language included under the headings “Cautionary Note Regarding Forward-Looking Statements” (in the case of Premier), “Forward-Looking Statements” (in the case of WesBanco), and “Risk Factors” in Premier’s and WesBanco’s Annual Reports on Form 10-K for the year ended December 31, 2023, and other documents subsequently filed by Premier and WesBanco with the SEC. These risks and uncertainties include other risks and uncertainties detailed from time to time in our Securities and Exchange Commission (SEC) filings, including our Annual Report on Form 10-K for the year ended December 31, 2023 and any further amendments thereto. All forward-looking statements made in this document are based on information presently available to the management of Premier and speak only as of the date on which they are made. We assume no obligation to update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as may be required by law. As required by U.S. GAAP, Premier will evaluate the impact of subsequent events through the issuance date of its June 30, 2024, consolidated financial statements as part of its Quarterly Report on Form 10-Q to be filed with the SEC, including with respect to the Merger. Accordingly, subsequent events could occur that may cause Premier to update its critical accounting estimates and to revise its financial information from that which is contained in this news release.

Non-GAAP Reporting Measures

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

Subsequent Event

As announced and further described in a separate press release jointly issued by Premier and WesBanco, Inc. today, Premier and WesBanco have entered into a merger agreement.

Consolidated Balance Sheets (Unaudited) Premier Financial Corp. June 30, March 31, December 31, September 30, June 30, (in thousands)

2024

2024

2023

Assets Cash and cash equivalents Cash and amounts due from depositories

72,053

57,956

81,973

70,642

71,096

Interest-bearing deposits

83,598

31,725

32,783

46,855

50,631

155,651

89,681

114,756

117,497

121,727

Available-for-sale, carried at fair value

1,081,120

1,014,433

946,708

911,184

961,123

Equity securities, carried at fair value

5,559

5,736

5,773

5,860

6,458

Securities investments

1,086,679

1,020,169

952,481

917,044

967,581

Loans (1)

6,682,138

6,693,745

6,739,387

6,696,869

6,708,568

Allowance for credit losses - loans

(77,222

)

(76,679

)

(76,512

)

(76,513

)

(75,921

)

Loans, net

6,604,916

6,617,066

6,662,875

6,620,356

6,632,647

Loans held for sale

138,604

137,523

145,641

135,218

128,079

Mortgage servicing rights

18,140

18,628

18,696

19,642

20,160

Accrued interest receivable

35,334

34,795

33,446

34,648

30,056

Federal Home Loan Bank stock

32,189

26,075

21,760

25,049

39,887

Bank Owned Life Insurance

183,409

182,203

181,544

172,906

171,856

Office properties and equipment

55,073

57,231

56,878

55,679

55,736

Real estate and other assets held for sale

394

255

243

387

561

Goodwill

295,602

295,602

Core deposit and other intangibles

10,250

11,196

12,186

13,220

14,298

Other assets

162,452

140,630

129,841

155,628

138,021

Total Assets

8,778,693

8,631,054

8,625,949

8,562,876

8,616,211

Liabilities and Stockholders’ Equity Non-interest-bearing deposits

1,438,764

1,467,161

1,591,979

1,545,595

1,573,837

Interest-bearing deposits

5,357,112

5,347,444

5,209,123

5,127,863

5,007,358

Brokered deposits

382,678

368,782

341,944

392,181

413,237

Total deposits

7,178,554

7,183,387

7,143,046

7,065,639

6,994,432

Advances from FHLB

393,000

253,000

280,000

339,000

455,000

Subordinated debentures

85,292

85,261

85,229

85,197

85,166

Advance payments by borrowers

13,391

16,861

23,277

22,781

26,045

Reserve for credit losses - unfunded commitments

3,343

3,614

4,307

4,690

5,708

Other liabilities

125,984

114,590

114,463

126,002

112,889

Total Liabilities

7,799,564

7,656,713

7,650,322

7,643,309

7,679,240

Stockholders’ Equity Preferred stock

Common stock, net

306

306

Additional paid-in-capital

689,743

689,468

690,585

690,038

689,579

Accumulated other comprehensive income (loss)

(163,038

)

(162,081

)

(153,719

)

(200,282

)

(168,721

)

Retained earnings

581,715

576,648

569,937

560,945

547,336

Treasury stock, at cost

(129,597

)

(130,000

)

(131,482

)

(131,440

)

(131,529

)

Total Stockholders’ Equity

979,129

974,341

975,627

919,567

936,971

Total Liabilities and Stockholders’ Equity

8,778,693

8,631,054

8,625,949

8,562,876

8,616,211

(1) Includes PPP loans of:

369

417

469

526

577

Consolidated Statements of Income (Unaudited) Premier Financial Corp. Three Months Ended Six Months Ended (in thousands, except per share amounts) 6/30/24 3/31/24 12/31/23 9/30/23 6/30/23 6/30/24 6/30/23 Interest Income: Loans

88,560

87,597

87,924

86,612

81,616

176,156

157,674

Investment securities

8,666

7,602

7,013

6,943

6,997

16,268

14,257

Interest-bearing deposits

638

609

740

652

641

1,247

1,085

FHLB stock dividends

606

534

621

690

905

1,141

1,299

Total interest income

98,470

96,342

96,298

94,897

90,159

194,812

174,315

Interest Expense: Deposits

43,927

42,567

39,250

34,874

26,825

86,494

48,283

FHLB advances

4,159

3,039

3,328

4,597

8,217

7,198

13,554

Subordinated debentures

1,159

1,162

1,169

1,162

1,125

2,321

2,199

Notes Payable

Total interest expense

49,245

46,768

43,747

40,633

36,167

96,013

64,036

Net interest income

49,225

49,574

52,551

54,264

53,992

98,799

110,279

Provision (benefit) for credit losses - loans

3,173

560

2,143

245

1,410

3,733

5,354

Provision (benefit) for credit losses - unfunded commitments

(271

)

(693

)

(382

)

(1,018

)

(870

)

(964

)

(1,108

)

Total provision (benefit) for credit losses

2,902

(133

)

1,761

(773

)

540

2,769

4,246

Net interest income after provision

46,323

49,707

50,790

55,037

53,452

96,030

106,033

Non-interest Income: Service fees and other charges

7,008

6,467

6,761

6,947

7,190

13,475

13,618

Mortgage banking income

2,047

2,350

802

3,274

2,940

4,396

2,666

Gain (loss) on sale of non-mortgage loans

Gain (loss) on sale of available for sale securities

)

Gain (loss) on equity securities

(176

)

(37

)

665

256

(213

)

(1,374

)

Gain on sale of insurance agency

36,296

Insurance commissions

4,131

8,856

Wealth management income

1,842

1,713

1,791

1,509

1,537

3,556

3,022

Income from Bank Owned Life Insurance

1,207

1,697

1,532

1,050

1,015

2,904

2,432

Other non-interest income

150

239

134

217

102

389

194

Total non-interest Income

12,078

12,496

11,789

13,253

53,346

24,574

65,808

Non-interest Expense: Compensation and benefits

21,353

23,394

20,963

21,813

24,175

44,747

49,833

Occupancy

3,434

3,365

3,318

3,145

3,320

6,799

6,894

FDIC insurance premium

1,150

1,120

1,383

1,346

1,786

2,270

3,074

Financial institutions tax

980

1,035

761

989

961

2,015

1,813

Data processing

5,067

4,670

4,678

4,010

3,640

9,737

7,503

Amortization of intangibles

946

990

1,033

1,078

1,223

1,936

2,493

Other non-interest expense

5,228

5,326

5,757

5,671

5,738

10,554

12,024

Total non-interest operating expenses

38,158

39,900

37,893

38,052

40,843

78,058

83,634

Transaction costs

3,652

Total non-interest expenses

38,208

39,900

37,893

38,052

44,495

78,108

87,286

Income (loss) before income taxes

20,193

22,303

24,686

30,238

62,303

42,496

84,555

Income tax expense (benefit)

4,017

4,514

4,616

5,551

13,912

8,531

18,015

Net income (loss)

16,176

17,789

20,070

24,687

48,391

33,965

66,540

Earnings per common share: Basic

0.45

0.50

0.56

0.69

1.35

0.95

1.86

Diluted

0.45

0.50

0.56

0.69

1.35

0.95

1.86

Average Shares Outstanding: Basic

35,715

35,772

35,655

35,730

35,722

35,696

35,686

Diluted

35,793

35,771

35,772

35,794

35,800

35,789

35,750

Premier Financial Corp. Selected Quarterly Information Three Months Ended Six Months Ended (dollars in thousands, except per share data) 6/30/24 3/31/24 12/31/23 9/30/23 6/30/23 6/30/24 6/30/23 Summary of Operations Tax-equivalent interest income (1)

98,542

96,417

96,340

94,951

90,226

194,959

174,485

Interest expense

49,245

46,768

43,747

40,633

36,167

96,013

64,036

Tax-equivalent net interest income (1)

49,297

49,649

52,593

54,318

54,059

98,946

110,449

Provision expense for credit losses

2,902

(133

)

1,761

(773

)

540

2,769

4,246

Non-interest income (ex securities gains/losses)

12,254

12,533

11,114

12,997

53,282

24,787

67,155

Core non-interest income (ex securities gains/losses) (2)

12,254

12,533

11,114

12,997

16,986

24,787

30,859

Non-interest expense

38,208

39,900

37,893

38,052

44,495

78,108

87,286

Core non-interest expense (2)

38,158

39,900

37,893

38,052

40,843

78,058

83,634

Income tax expense (benefit)

4,017

4,514

4,616

5,551

13,912

8,531

18,015

Net income (loss)

16,176

17,789

20,070

24,687

48,391

33,965

66,540

Core net income (2)

16,215

17,789

20,070

24,687

24,230

34,004

42,379

Tax equivalent adjustment (1)

147

170

At Period End Total assets

8,778,693

8,631,054

8,625,949

8,562,876

8,616,211

Goodwill and intangibles

305,852

306,798

307,788

308,822

309,900

Tangible assets (3)

8,472,841

8,324,256

8,318,161

8,254,054

8,306,311

Earning assets

7,945,986

7,832,558

7,815,540

7,744,522

7,818,825

Loans

6,682,138

6,693,745

6,739,387

6,696,869

6,708,568

Allowance for loan losses

77,222

76,679

76,512

76,513

75,921

Deposits

7,178,554

7,183,387

7,143,046

7,065,639

6,994,432

Stockholders’ equity

979,129

974,341

975,627

919,567

936,971

Stockholders’ equity / assets

11.15

11.29

11.31

10.74

10.87

Tangible equity (3)

673,277

667,543

667,839

610,745

627,071

Tangible equity / tangible assets

7.95

8.02

8.03

7.40

7.55

Average Balances Total assets

8,646,024

8,591,947

8,536,193

8,582,219

8,597,786

8,618,985

8,515,898

Earning assets

8,016,157

7,956,887

7,936,648

7,969,363

7,951,520

7,986,522

7,871,629

Loans

6,730,698

6,745,823

6,754,782

6,763,232

6,714,240

6,738,261

6,625,155

Deposits and interest-bearing liabilities

7,533,717

7,476,431

7,447,324

7,486,595

7,538,674

7,505,073

7,462,732

Deposits

7,119,191

7,144,343

7,098,265

7,045,827

6,799,605

7,131,767

6,816,469

Stockholders’ equity

968,451

974,560

930,835

939,456

921,441

971,505

911,569

Goodwill and intangibles

306,303

307,226

308,243

309,330

334,862

306,765

335,636

Tangible equity (3)

662,148

667,334

622,592

630,126

586,579

664,740

575,933

Per Common Share Data Earnings per share ("EPS") - Basic

0.45

0.50

0.56

0.69

1.35

0.95

1.86

EPS - Diluted

0.45

0.50

0.56

0.69

1.35

0.95

1.86

EPS - Core diluted (2)

0.45

0.50

0.56

0.69

0.68

0.95

1.19

Dividends Paid

0.31

0.31

0.62

0.62

Market Value: High

21.30

24.50

24.87

22.89

21.01

24.15

27.99

Low

18.72

18.68

15.79

15.70

13.60

18.72

13.60

20.46

20.30

24.10

17.06

16.02

20.46

16.02

Common Book Value

27.32

27.20

27.31

25.74

26.23

Tangible Common Book Value (3)

18.79

18.64

18.69

17.09

17.55

Shares outstanding, end of period (000s)

35,840

35,817

35,730

35,731

35,727

Performance Ratios (annualized) Tax-equivalent net interest margin (1)

2.46

2.50

2.65

2.73

2.72

2.48

2.81

Return on average assets

0.75

0.83

0.93

1.14

2.26

0.79

1.58

Core return on average assets (2)

0.75

0.83

0.93

1.14

1.13

0.79

1.00

Return on average equity

6.72

7.34

8.55

10.43

21.06

7.03

14.72

Core return on average equity (2)

6.73

7.34

8.55

10.43

10.55

7.04

9.38

Return on average tangible equity

9.83

10.72

12.79

15.54

33.09

10.28

23.30

Core return on average tangible equity (2)

9.85

10.72

12.79

15.54

16.57

10.29

14.84

Efficiency ratio (4)

62.08

64.17

59.48

56.53

41.45

63.13

49.15

Core efficiency ratio (2)

61.99

64.17

59.48

56.53

57.49

63.09

59.19

Non-interest expenses / average assets

1.78

1.87

1.76

2.08

1.82

2.07

Core non-interest expenses / average assets

1.78

1.87

1.76

1.91

1.82

1.98

Effective tax rate

19.89

20.24

18.70

18.36

22.33

20.07

21.31

Core effective tax rate

19.90

20.24

18.70

18.36

22.33

20.08

18.36

Common dividend payout ratio

68.89

62.00

55.36

44.93

22.96

65.26

33.33

Core common dividend payout ratio

68.89

62.00

55.36

44.93

22.96

65.26

52.10

(1) Interest income on tax-exempt securities and loans has been adjusted to a tax-equivalent basis using the statutory federal income tax rate of 21%. (2) Core items exclude the impact of strategic merger and insurance agency disposition related items. See non-GAAP reconciliations. (3) Tangible assets = total assets less the sum of goodwill and core deposit and other intangibles. Tangible equity = total stockholders' equity less the sum of goodwill, core deposit and other intangibles, and preferred stock. Tangible common book value = tangible equity divided by shares outstanding at the end of the period. (4) Efficiency ratio = Non-interest expense divided by sum of tax-equivalent net interest income plus non-interest income, excluding securities gains or losses, net. Premier Financial Corp. Yield Analysis (dollars in thousands) Three Months Ended Six Months Ended 6/30/24 3/31/24 12/31/23 9/30/23 6/30/23 6/30/24 6/30/23 Average Balances Interest-earning assets: Loans receivable (1)

6,730,698

6,745,823

6,754,782

6,763,232

6,714,240

6,738,261

6,625,155

Securities

1,221,006

1,152,346

1,121,231

1,137,730

1,155,451

1,186,676

1,172,809

Interest Bearing Deposits

37,226

34,924

36,761

38,210

36,730

36,075

35,898

FHLB stock

27,227

23,794

23,874

30,191

45,099

25,510

37,767

Total interest-earning assets

8,016,157

7,956,887

7,936,648

7,969,363

7,951,520

7,986,522

7,871,629

Non-interest-earning assets

629,867

635,060

599,545

612,856

646,266

632,463

644,269

Total assets

8,646,024

8,591,947

8,536,193

8,582,219

8,597,786

8,618,985

8,515,898

Deposits and Interest-bearing Liabilities: Interest bearing deposits

5,669,033

5,650,823

5,541,498

5,490,945

5,195,727

5,659,928

5,137,442

FHLB advances and other

329,253

246,846

263,848

355,576

653,923

288,049

561,133

Subordinated debentures

85,273

85,242

85,211

85,179

85,146

85,257

85,130

Notes payable

Total interest-bearing liabilities

6,083,559

5,982,911

5,890,557

5,931,713

5,934,796

6,033,234

5,783,705

Non-interest bearing deposits

1,450,158

1,493,520

1,556,767

1,554,882

1,603,878

1,471,839

1,679,027

Total including non-interest-bearing deposits

7,533,717

7,476,431

7,447,324

7,486,595

7,538,674

7,505,073

7,462,732

Other non-interest-bearing liabilities

143,856

140,956

158,034

156,168

137,671

142,407

141,597

Total liabilities

7,677,573

7,617,387

7,605,358

7,642,763

7,676,345

7,647,480

7,604,329

Stockholders' equity

968,451

974,560

930,835

939,456

921,441

971,505

911,569

Total liabilities and stockholders' equity

8,646,024

8,591,947

8,536,193

8,582,219

8,597,786

8,618,985

8,515,898

IEAs/IBLs

132

133

135

134

132

136

Interest Income/Expense Interest-earning assets: Loans receivable (2)

88,567

87,603

87,929

86,618

81,622

176,169

157,684

Securities (2)

8,731

7,671

7,050

6,991

7,058

16,402

14,417

Interest Bearing Deposits

638

609

740

652

641

1,247

1,085

FHLB stock

606

534

621

690

905

1,141

1,299

Total interest-earning assets

98,542

96,417

96,340

94,951

90,226

194,959

174,485

Deposits and Interest-bearing Liabilities: Interest bearing deposits

43,927

42,567

39,250

34,874

26,825

86,494

48,283

FHLB advances and other

4,159

3,039

3,328

4,597

8,217

7,198

13,554

Subordinated debentures

1,159

1,162

1,169

1,162

1,125

2,321

2,199

Notes payable

Total interest-bearing liabilities

49,245

46,768

43,747

40,633

36,167

96,013

64,036

Non-interest bearing deposits

Total including non-interest-bearing deposits

49,245

46,768

43,747

40,633

36,167

96,013

64,036

Net interest income

49,297

49,649

52,593

54,318

54,059

98,946

110,449

Annualized Average Rates Interest-earning assets: Loans receivable

5.26

5.19

5.21

5.12

4.86

5.23

4.76

Securities (3)

2.86

2.66

2.52

2.46

2.44

2.76

2.46

Interest Bearing Deposits

6.86

6.98

8.05

6.83

6.98

6.91

6.04

FHLB stock

8.90

8.98

10.40

9.14

8.03

8.95

6.88

Total interest-earning assets

4.92

4.85

4.86

4.77

4.54

4.88

4.43

Deposits and Interest-bearing Liabilities: Interest bearing deposits

3.10

3.01

2.83

2.54

2.07

3.06

1.88

FHLB advances and other

5.05

4.92

5.05

5.17

5.03

5.00

4.83

Subordinated debentures

5.44

5.45

5.49

5.46

5.29

5.44

5.17

Notes payable

Total interest-bearing liabilities

3.24

3.13

2.97

2.74

2.44

3.18

2.21

Non-interest bearing deposits

Total including non-interest-bearing deposits

2.61

2.50

2.35

2.17

1.92

2.56

1.72

Net interest spread

1.68

1.72

1.89

2.03

2.10

1.70

2.22

Net interest margin (4)

2.46

2.50

2.65

2.73

2.72

2.48

2.81

(1) Includes average PPP loans of:

394

442

495

553

673

418

818

(2) Interest on certain tax exempt loans and securities is not taxable for Federal income tax purposes. In order to compare the tax-exempt yields on these assets to taxable yields, the interest earned on these assets is adjusted to a pre-tax equivalent amount based on the marginal corporate federal income tax rate of 21%. (3) Securities yield = annualized interest income divided by the average balance of securities, excluding average unrealized gains/losses. (4) Net interest margin is tax equivalent net interest income divided by average interest-earning assets. Premier Financial Corp. Deposits and Liquidity (dollars in thousands) As of and for the Three Months Ended 6/30/24 3/31/24 12/31/23 9/30/23 6/30/23 Ending Balances Non-interest-bearing demand deposits

1,438,764

1,467,161

1,591,979

1,545,595

1,573,837

Savings deposits

632,831

656,122

677,679

709,938

748,392

Interest-bearing demand deposits

530,932

553,331

565,757

580,069

594,325

Money market account deposits

1,437,688

1,426,809

1,374,526

1,279,551

1,282,721

Time deposits

1,052,934

1,051,955

998,002

925,353

904,717

Public funds, ICS and CDARS deposits

1,702,727

1,659,227

1,593,159

1,632,952

1,477,203

Brokered deposits

382,678

368,782

341,944

392,181

413,237

Total deposits

7,178,554

7,183,387

7,143,046

7,065,639

6,994,432

Average Balances Non-interest-bearing demand deposits

1,450,158

1,493,520

1,556,767

1,554,882

1,603,878

Savings deposits

643,523

663,786

691,295

728,545

762,074

Interest-bearing demand deposits

546,496

547,168

557,210

575,744

603,572

Money market account deposits

1,430,619

1,411,075

1,331,623

1,278,381

1,311,177

Time deposits

1,049,566

1,025,946

959,420

912,579

872,991

Public funds, ICS and CDARS deposits

1,636,188

1,618,554

1,614,339

1,573,213

1,399,749

Brokered deposits

362,641

384,294

387,611

422,483

246,164

Total deposits

7,119,191

7,144,343

7,098,265

7,045,827

6,799,605

Average Rates Non-interest-bearing demand deposits

0.00

0.00

Savings deposits

0.03

0.03

0.02

Interest-bearing demand deposits

0.08

0.12

0.13

0.11

0.10

Money market account deposits

2.94

2.83

2.65

2.02

1.73

Time deposits

3.80

3.55

3.15

2.68

2.27

Public funds, ICS and CDARS deposits

4.52

4.48

4.30

4.18

3.71

Brokered deposits

5.32

5.33

5.46

5.36

4.92

Total deposits

2.47

2.38

2.21

1.98

1.58

Other Deposits Data Loans/Deposits Ratio

93.1

93.2

94.3

94.8

95.9

Uninsured deposits %

32.5

32.6

33.1

32.8

31.5

Adjusted uninsured deposits % (1)

17.0

17.6

18.9

17.7

17.3

Top 20 depositors %

14.4

14.0

13.9

14.1

12.4

Public funds %

18.9

18.5

17.9

18.8

17.5

Average account size (excluding brokered)

27.5

27.0

26.9

27.1

26.7

Securities Data Held-to-maturity (HTM) at fair value

Available-for-sale (AFS) at fair value (2)

1,081,120

1,014,433

946,708

911,184

961,123

Equity investment at fair value (3)

5,559

5,736

5,773

5,860

6,458

Total securities at fair value

1,086,679

1,020,169

952,481

917,044

967,581

Cash+Securities/Assets

14.2

12.9

12.4

12.1

12.6

Projected AFS cash flow in next 12 months

115,609

89,563

69,067

66,495

64,687

AFS average life (years)

4.9

5.3

6.2

6.5

Liquidity Sources Cash and cash equivalents

155,651

89,681

114,756

117,497

121,727

Unpledged securities at fair value

477,776

398,610

314,385

280,916

298,471

FHLB borrowing capacity

1,247,632

1,383,086

1,336,707

1,311,091

1,542,459

Brokered deposits

492,359

491,447

513,767

316,697

288,719

Bank and parent lines of credit

70,000

70,000

Federal Reserve - Discount Window and BTFP (4)

702,712

680,456

620,518

471,395

491,141

Total

3,146,130

3,113,280

2,970,133

2,567,596

2,812,517

Total liquidity to adjusted uninsured deposits ratio

255.7

244.7

218.3

204.0

230.5

(1) Adjusted for collateralized deposits, other insured deposits and intra-company accounts. (2) Mark-to-market included in accumulated other comprehensive income. (3) Mark-to-market included in net income each quarter. (4) Includes capacity related to unpledged securities at par value in excess of fair value under Bank Term Funding Program prior to 3/31/24. Premier Financial Corp. Loans and Capital (dollars in thousands) 6/30/24 3/31/24 12/31/23 9/30/23 6/30/23 Loan Portfolio Composition Residential real estate

1,805,984

1,816,416

1,810,265

1,797,676

1,711,632

Residential real estate construction

9,649

15,009

28,794

51,637

111,708

Total residential loans

1,815,633

1,831,425

1,839,059

1,849,313

1,823,340

Commercial real estate

2,844,792

2,830,086

2,839,905

2,820,410

2,848,410

Commercial construction

513,652

535,294

528,563

502,502

472,328

Commercial excluding PPP

1,037,718

1,030,620

1,056,334

1,038,939

1,068,795

Core commercial loans (1)

4,396,162

4,396,000

4,424,802

4,361,851

4,389,533

Consumer direct/indirect

187,936

187,664

193,830

203,800

210,390

Home equity and improvement lines

268,699

265,362

267,960

269,053

272,792

Total consumer loans

456,635

453,026

461,790

472,853

483,182

Deferred loan origination fees

13,339

12,877

13,267

12,326

11,936

Core loans (1)

6,681,769

6,693,328

6,738,918

6,696,343

6,707,991

PPP loans

369

417

469

526

577

Total loans

6,682,138

6,693,745

6,739,387

6,696,869

6,708,568

Loans held for sale

138,604

137,523

145,641

135,218

128,079

Core residential loans (1)

1,954,237

1,968,948

1,984,700

1,984,531

1,951,419

Total loans including loans held for sale but excluding PPP

6,820,373

6,830,851

6,884,559

6,831,561

6,836,070

Undisbursed construction loan funds - residential

52,140

57,246

72,748

82,689

102,198

Undisbursed construction loan funds - commercial

123,445

151,677

208,718

284,610

353,455

Undisbursed construction loan funds - total

175,585

208,923

281,466

367,299

455,653

Total construction loans including undisbursed funds

698,886

759,226

838,823

921,438

1,039,689

Gross loans (2)

6,844,384

6,889,791

7,007,586

7,051,842

7,152,285

Fixed rate loans %

48.7

49.0

49.3

49.8

Floating rate loans %

16.2

16.5

15.6

15.8

15.9

Adjustable rate loans repricing within 1 year %

5.2

3.4

2.9

1.5

Adjustable rate loans repricing over 1 year %

29.9

31.1

31.7

31.5

32.8

Commercial Real Estate Loans Composition Non owner occupied excluding office

1,047,892

1,026,598

1,027,801

1,023,585

1,012,400

Non owner occupied office

186,266

189,436

205,302

207,869

225,046

Owner occupied excluding office

668,327

656,825

653,849

597,303

603,650

Owner occupied office

107,555

112,706

113,679

106,761

107,240

Multifamily

642,469

652,371

642,651

627,602

633,909

Agriculture land

121,597

121,102

121,544

119,710

123,104

Other commercial real estate

70,686

71,048

75,079

137,580

143,061

Total commercial real estate loans

2,844,792

2,830,086

2,839,905

2,820,410

2,848,410

Capital Balances Total equity

979,129

974,341

975,627

919,567

936,971

Less: Regulatory goodwill and intangibles

300,770

301,716

302,706

303,740

304,818

Less: Accumulated other comprehensive income/(loss) ("AOCI")

(163,038

)

(162,081

)

(153,719

)

(200,282

)

(168,721

)

Common equity tier 1 capital ("CET1")

841,397

834,706

826,640

816,109

800,874

Add: Tier 1 subordinated debt

35,000

35,000

Tier 1 capital

876,397

869,706

861,640

851,109

835,874

Add: Regulatory allowances

80,247

79,827

80,231

80,791

80,812

Add: Tier 2 subordinated debt

50,000

50,000

Total risk-based capital

1,006,644

999,533

991,871

981,900

966,686

Total risk-weighted assets

7,062,328

7,013,832

7,066,743

7,329,471

7,381,940

Capital Ratios CET1 Ratio

11.91

11.90

11.70

11.13

10.85

CET1 Ratio including AOCI

9.61

9.59

9.52

8.40

8.56

Tier 1 Capital Ratio

12.41

12.40

12.19

11.61

11.32

Tier 1 Capital Ratio including AOCI

10.10

10.09

10.02

8.88

9.04

Total Capital Ratio

14.25

14.25

14.04

13.39

13.10

Total Capital Ratio including AOCI

11.95

11.94

11.86

10.66

10.81

(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 dayspast due % ofTotal Non AccrualLoans % ofTotal June 30, 2024 One to four family residential real estate

1,805,984

1,781,241

8,960

0.50

15,783

0.87

Construction

698,886

0.00

Commercial real estate

2,844,792

2,832,095

8,581

0.30

4,116

0.14

Commercial

1,038,087

998,954

328

0.03

38,805

3.74

Home equity and improvement

268,699

264,563

2,478

0.92

1,658

0.62

Consumer finance

187,936

179,842

4,298

2.29

3,796

2.02

Gross loans

6,844,384

6,755,581

24,645

0.36

64,158

0.94

March 31, 2024 One to four family residential real estate

1,816,416

1,797,169

5,834

0.32

13,413

0.74

Construction

759,226

0.00

Commercial real estate

2,830,086

2,821,750

1,083

0.04

7,253

0.26

Commercial

1,031,037

1,013,857

4,440

0.43

12,740

1.24

Home equity and improvement

265,362

260,683

2,613

0.98

2,066

0.78

Consumer finance

187,664

179,741

4,364

2.33

3,559

1.90

Gross loans

6,889,791

6,832,426

18,334

0.27

39,031

0.57

June 30, 2023 One to four family residential real estate

1,711,632

1,694,024

7,320

0.43

10,288

0.60

Construction

1,039,689

1,039,404

285

0.03

0.00

Commercial real estate

2,848,410

2,833,765

596

0.02

14,049

0.49

Commercial

1,069,372

1,057,057

4,290

0.40

8,025

0.75

Home equity and improvement

272,792

267,617

2,945

1.08

2,230

0.82

Consumer finance

210,390

204,404

3,587

1.70

2,399

1.14

Gross loans

7,152,285

7,096,271

19,023

0.27

36,991

0.52

Loan Risk Ratings Information (dollars in thousands) Total Balance Pass Rated Special Mention % ofTotal Classified % ofTotal June 30, 2024 One to four family residential real estate

1,796,799

1,781,780

470

0.03

14,549

0.81

Construction

698,886

691,386

7,500

1.07

0.00

Commercial real estate

2,842,924

2,747,835

48,238

1.70

46,851

1.65

Commercial

1,034,491

952,016

37,107

3.59

45,368

4.39

Home equity and improvement

267,300

265,847

0.00

1,453

0.54

Consumer finance

187,816

184,242

0.00

3,574

1.90

PCD loans

16,168

13,480

164

1.01

2,524

15.61

Gross loans

6,844,384

6,636,586

93,479

1.37

114,319

1.67

March 31, 2024 One to four family residential real estate

1,806,724

1,794,030

487

0.03

12,207

0.68

Construction

759,226

751,726

7,500

0.99

0.00

Commercial real estate

2,828,138

2,749,206

53,456

1.89

25,476

0.90

Commercial

1,027,101

945,049

32,487

3.16

49,565

4.83

Home equity and improvement

263,897

262,046

0.00

1,851

0.70

Consumer finance

187,501

184,214

0.00

3,287

1.75

PCD loans

17,204

12,006

2,485

14.44

2,713

15.77

Gross loans

6,889,791

6,698,277

96,415

1.40

95,099

1.38

June 30, 2023 One to four family residential real estate

1,700,468

1,689,666

484

0.03

10,318

0.61

Construction

1,039,689

1,031,356

8,333

0.80

0.00

Commercial real estate

2,847,035

2,797,688

20,751

0.73

28,596

1.00

Commercial

1,063,744

1,021,403

27,376

2.57

14,965

1.41

Home equity and improvement

270,722

269,038

0.00

1,684

0.62

Consumer finance

210,158

207,963

0.00

2,195

1.04

PCD loans

20,469

13,981

3,786

18.50

2,702

13.20

Gross loans

7,152,285

7,031,095

60,730

0.85

60,460

0.85

Premier Financial Corp. Mortgage and Credit Information (dollars in thousands) As of and for the Three Months Ended Six Months Ended Mortgage Banking Summary 6/30/24 3/31/24 12/31/23 9/30/23 6/30/23 6/30/24 6/30/23 Revenue from sales and servicing of mortgage loans: Mortgage banking gains, net

1,378

1,283

439

2,584

2,242

2,661

1,405

Mortgage loan servicing revenue (expense): Mortgage loan servicing revenue

1,835

1,842

1,844

1,850

1,845

3,676

3,733

Amortization of mortgage servicing rights

(1,313

)

(1,238

)

(1,257

)

(1,291

)

(1,277

)

(2,551

)

(2,496

)

Mortgage servicing rights valuation adjustments

147

463

(224

)

131

130

610

669

1,067

363

690

698

1,735

1,261

Total revenue from sale/servicing of mortgage loans

2,047

2,350

802

3,274

2,940

4,396

2,666

Mortgage servicing rights: Balance at beginning of period

18,921

19,452

20,174

20,823

21,447

19,452

21,858

Loans sold, servicing retained

678

707

535

642

653

1,385

1,461

Amortization

(1,313

)

(1,238

)

(1,257

)

(1,291

)

(1,277

)

(2,551

)

(2,496

)

Balance at end of period

18,286

18,921

19,452

20,174

20,823

18,286

20,823

Valuation allowance: Balance at beginning of period

(293

)

(756

)

(532

)

(663

)

(793

)

(756

)

(687

)

Impairment recovery (charges)

147

463

(224

)

131

130

610

Balance at end of period

(146

)

(293

)

(756

)

(532

)

(663

)

(146

)

(663

)

Net carrying value at end of period

18,140

18,628

18,696

19,642

20,160

18,140

20,160

Allowance for credit losses - loans Beginning allowance

76,679

76,512

76,513

75,921

74,273

76,512

72,816

Provision (benefit) for credit losses - loans

3,173

560

2,143

245

1,410

3,733

5,354

Net recoveries (charge-offs)

(2,630

)

(393

)

(2,144

)

347

238

(3,023

)

(2,249

)

Ending allowance

77,222

76,679

76,512

76,513

75,921

77,222

75,921

Total loans

6,682,138

6,693,745

6,739,387

6,696,869

6,708,568

Less: PPP loans

(369

)

(417

)

(469

)

(526

)

(577

)

Total loans ex PPP

6,681,769

6,693,328

6,738,918

6,696,343

6,707,991

Allowance for credit losses (ACL)

77,222

76,679

76,512

76,513

75,921

Add: Unaccreted purchase accounting marks

575

889

1,160

1,526

1,901

Adjusted ACL

77,797

77,568

77,672

78,039

77,822

ACL/Loans

1.16

1.15

1.14

1.13

Adjusted ACL/Loans ex PPP

1.16

1.16

1.15

1.17

1.16

Credit Quality Total non-performing loans (1)

64,158

39,031

35,491

39,463

36,991

Real estate owned (REO)

394

255

243

387

561

Total non-performing assets (2)

64,552

39,286

35,734

39,850

37,552

Net charge-offs (recoveries)

2,630

393

2,144

(347

)

(238

)

Allowance for credit losses / non-performing assets

119.63

195.18

214.12

192.00

202.18

Allowance for credit losses / non-performing loans

120.36

196.46

215.58

193.89

205.24

Non-performing assets / loans plus REO

0.97

0.59

0.53

0.60

0.56

Non-performing assets / total assets

0.74

0.46

0.41

0.47

0.44

Net charge-offs (recoveries) / average loans

0.16

0.02

0.13

-0.02

-0.01

Net charge-offs (recoveries) / average loans LTM

0.07

0.03

0.06

0.04

0.14

(1) Non-performing loans consist of non-accrual loans. (2) Non-performing assets are non-performing loans plus real estate and other assets acquired by foreclosure or deed-in-lieu thereof. Premier Financial Corp. Non-GAAP Reconciliations Three Months Ended Six Months Ended (In thousands, except per share and ratio data) 6/30/24 3/31/24 12/31/23 9/30/23 6/30/23 6/30/24 6/30/23 Total non-interest expenses

38,208

39,900

37,893

38,052

44,495

78,108

87,286

Less: Transaction costs (pre-tax)(1)

3,652

Core non-interest expenses

38,158

39,900

37,893

38,052

40,843

78,058

83,634

Average total assets

8,646,024

8,591,947

8,536,193

8,582,219

8,597,786

8,618,985

8,515,898

Core non-interest expenses / average assets

1.78

1.87

1.76

1.91

1.82

1.98

Core non-interest expenses

38,158

39,900

37,893

38,052

40,843

78,058

83,634

Less: Insurance agency expenses

3,432

6,425

Core non-interest expenses excluding insurance agency

38,158

39,900

37,893

38,052

37,411

78,058

77,209

Non-interest income

12,078

12,496

11,789

13,253

53,346

24,574

65,808

Less: Gain on sale of insurance agency (pre-tax)

36,296

Core non-interest income

12,078

12,496

11,789

13,253

17,050

24,574

29,512

Less: Securities gains (losses)

(176

)

(37

)

675

256

(213

)

(1,347

)

Core non-interest income (ex securities gains/losses)

12,254

12,533

11,114

12,997

16,986

24,787

30,859

Tax-equivalent net interest income

49,297

49,649

52,593

54,318

54,059

98,946

110,449

Core non-interest income (ex securities gains/losses)

12,254

12,533

11,114

12,997

16,986

24,787

30,859

Total core revenues

61,551

62,182

63,707

67,315

71,045

123,733

141,308

Core non-interest expenses

38,158

39,900

37,893

38,052

40,843

78,058

83,634

Core efficiency ratio

61.99

64.17

59.48

56.53

57.49

63.09

59.19

Income (loss) before income taxes

20,193

22,303

24,686

30,238

62,303

42,496

84,555

Add: Provision (benefit) for credit losses

2,902

(133

)

1,761

(773

)

540

2,769

4,246

Pre-tax pre-provision income

23,095

22,170

26,447

29,465

62,843

45,265

88,801

Add: Transaction costs (pre-tax)

3,652

Less: Gain on sale of insurance agency (pre-tax)

36,296

Core pre-tax pre-provision income

23,145

22,170

26,447

29,465

30,199

45,315

56,157

Average total assets

8,646,024

8,591,947

8,536,193

8,582,219

8,597,786

8,618,985

8,515,898

Core pre-tax pre-provision return on average assets

1.08

1.04

1.23

1.36

1.41

1.06

1.33

Net income (loss)

16,176

17,789

20,070

24,687

48,391

33,965

66,540

Less: Gain on sale of insurance agency (pre-tax)

36,296

Add: Transaction costs (pre-tax)

3,652

Add: Tax impact of above items

(11

)

8,483

(11

)

8,483

Core net income

16,215

17,789

20,070

24,687

24,230

34,004

42,379

Diluted shares - Reported

35,793

35,771

35,772

35,794

35,800

35,789

35,750

Core diluted EPS

0.45

0.50

0.56

0.69

0.68

0.95

1.19

Average total assets

8,646,024

8,591,947

8,536,193

8,582,219

8,597,786

8,618,985

8,515,898

Core return on average assets

0.75

0.83

0.93

1.14

1.13

0.79

1.00

Average total equity

968,451

974,560

930,835

939,456

921,441

971,505

911,569

Core return on average equity

6.73

7.34

8.55

10.43

10.55

7.04

9.38

Average total tangible equity

662,148

667,334

622,592

630,126

586,579

664,740

575,933

Core return on average tangible equity

9.85

10.72

12.79

15.54

16.57

10.29

14.84

(1) Transaction costs for 2024 relate to the strategic merger transaction. Transaction costs for 2023 relate to the insurance agency sale.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240726360335/en/

Paul Nungester EVP and CFO 419.785.8700 PNungester@yourpremierbank.com

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