Premier Financial Corp. Announces Third Quarter 2024 Results

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
	0.46	1.79%	26.21	20.38	30.00	26.56	25.41	25.41	532,942	22:30:00

Premier Financial (NASDAQ:PFC)
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Declared dividend of $0.31 per share

Third Quarter Highlights

Announced strategic merger with Wesbanco, Inc.
Earnings per share of $0.46 or $0.54 excluding transaction costs, increases of $0.01 and $0.09, respectively, from second quarter
Average deposits excluding brokereds increased 5% annualized from second quarter
Average interest-earning assets increased 1% annualized from second quarter
Net interest margin increased four basis points to 2.50% from second quarter
Book value per share of $28.43 and tangible book value per share of $19.92, increases of 16% and 24% annualized, respectively, from second quarter

Premier Financial Corp. (Nasdaq: PFC) (“Premier” or the “Company”) announced today 2024 third quarter results.

Strategic merger

On July 26, 2024, PFC and Wesbanco, Inc. (Nasdaq: WSBC) announced the signing of a definitive merger agreement under which PFC will merge into WSBC in a stock-for-stock transaction. Under the terms of the merger agreement, shareholders of PFC will receive 0.80 shares of WSBC common stock for each share of PFC common stock. Premier Bank, a wholly owned subsidiary of PFC, will merge into Wesbanco Bank, Inc., a wholly owned subsidiary of WSBC. Upon closing, PFC shareholders will own approximately 30% of the combined company. 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 third quarter of 2024 was $16.7 million, or $0.46 per diluted common share, compared to income of $24.7 million, or $0.69 per diluted common share, for the third quarter of 2023. Third quarter 2024 results included the impact of transaction costs for the strategic merger totaling $2.8 million pre-tax or $0.08 per diluted common share after-tax. Excluding the impact of these transaction costs, third quarter 2024 earnings were $19.3 million or $0.54 per diluted common share.

Net interest income and margin

Net interest income of $50.3 million on a tax equivalent (“TE”) basis in the third quarter of 2024 was up 1.9% from $49.3 million in the second quarter of 2024 and down 7.5% from $54.3 million in the third quarter of 2023. The TE net interest margin of 2.50% in the third quarter of 2024 increased four basis points from 2.46% in the second quarter of 2024 but decreased 23 basis points from 2.73% in the third quarter of 2023. These results are primarily impacted by changes in deposit balances/costs and loan balances/yields.

Total loans including held-for-sale decreased $110.4 million, during the third quarter of 2024, primarily due to an $87.2 million decrease in commercial loans. Total average loan yields increased seven basis points to 5.33% for the third quarter of 2024. This increase was primarily due to origination of higher yielding loans and payoffs of lower yielding loans.

Total deposits decreased $35.9 million during the third quarter of 2024 from the second quarter of 2024 due to a $95.3 million decrease in brokered deposits offset partly by an increase of $59.4 million in customer deposits. Total average interest-bearing deposit costs increased five basis points to 3.15% during the third quarter of 2024 from the second quarter of 2024. This increase was primarily due to new customer acquisitions and continued migration of customers from lower cost to higher cost deposits products.

Beginning in March 2024 and through September 2024, management implemented rate reductions in certain deposit tiers. The benefit of those actions began to be realized in third quarter 2024 as the average cost of customer interest-bearing deposits declined from June to September. In addition, partly due to the Federal Funds Rate reduction in mid-September, wholesale funding average costs for FHLB, brokered deposits and other borrowings also declined from June to September. As a result, total cost of funds decreased and net interest margin increased from June to September.

Non-interest income

Total non-interest income in the third quarter of 2024 of $12.6 million was up 4.1% from $12.1 million in the second quarter of 2024, primarily due to gains on equity securities, but down 5.1% from $13.3 million in the third quarter of 2023, primarily due to mortgage banking income. Mortgage banking income decreased $0.9 million on a linked quarter basis and $2.1 million from third quarter 2023, primarily as a result of fluctuations in gain on sale margins and MSR valuation adjustments. During the third quarter of 2024, the company completed an aged loans sale that reduced gains on sale by approximately $0.3 million.

Security gains were $410 thousand in the third quarter of 2024, compared to losses of $176 thousand in the second quarter of 2024 and gains of $256 thousand in the third quarter of 2023, primarily due to valuation changes on equity securities. Service fees in the third quarter of 2024 were $7.8 million, a 10.7% increase from $7.0 million in the second quarter of 2024, and an 11.6% increase from $6.9 million in the third quarter of 2023. This change was primarily due to fluctuations in loan fees, including commercial customer swap activity. Wealth management income of $1.9 million in the third quarter of 2024 was up slightly from $1.8 million in the second quarter of 2024 and 24.5% higher than $1.5 million in the third quarter of 2023. BOLI income of $1.2 million in the third quarter of 2024, compared to $1.2 million in the second quarter of 2024, and $1.1 million in the third quarter of 2023 with no claim gains in any period.

Non-interest expenses

Excluding transaction costs, non-interest expenses in the third quarter of 2024 were $39.1 million, a 2.5% increase from $38.2 million in the second quarter of 2024, and a 2.8% increase from $38.1 million in the third quarter of 2023. Compensation and benefits were $21.8 million in the third quarter of 2024, compared to $21.4 million in the second quarter of 2024 and $21.8 million in the third quarter of 2023. The linked quarter increase was primarily due to higher health insurance costs. Data processing costs were $5.1 million in the third quarter of 2024, compared to $5.1 million in the second quarter of 2024 and $4.0 million in the third 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 increased a net $0.5 million on a linked quarter basis and a net $49 thousand from third quarter 2023 primarily due to a $0.2 million of loss on sale for a closed branch. The core efficiency ratio for the third quarter of 2024 was 62.7% compared to 62.0% in the second quarter of 2024 and 56.5% in the third quarter of 2023. The ratio of core non-interest expenses to average assets was 1.79% for the third quarter of 2024 compared to 1.78% for the second quarter of 2024 and from 1.76% for the third quarter of 2023.

Credit quality

Non-performing assets totaled $82.3 million, or 0.94% of assets, at September 30, 2024, an increase from $64.6 million at June 30, 2024, and from $39.9 million at September 30, 2023. The linked quarter increase was primarily due to two multifamily commercial relationships. Loan delinquencies decreased to $17.2 million, or 0.25% of loans, at September 30, 2024, from $24.6 million at June 30, 2024, and from $17.2 million at September 30, 2023. Criticized loans totaled $245.7 million, or 3.62% of loans, as of September 30, 2024, an increase from $207.8 million at June 30, 2024, and from $161.1 million at September 30, 2023.

The 2024 third quarter results include net charge-offs of $0.6 million and a total provision benefit of $0.3 million, compared with net loan recoveries of $0.3 million and a total provision benefit of $0.8 million for the same period in 2023. The change in provision is primarily due to lower loan balances. The allowance for credit losses as a percentage of total loans was 1.16% at September 30, 2024, compared with 1.16% at June 30, 2024, and 1.14% at September 30, 2023.

Year to date results

Net income for the first nine months of 2024 was $50.6 million, or $1.41 per diluted common share, compared to income of $91.2 million, or $2.55 per diluted common share for the first nine months of 2023. 2024 results included the impact of transaction costs for the strategic merger totaling $2.8 million pre-tax or $0.08 per diluted common share after-tax. Excluding the impact of these transaction costs, 2024 core earnings were $53.3 million or $1.49 per diluted common share. 2023 results included the impact of the insurance agency sale for a net gain on sale after transaction costs of $32.6 million pre-tax or $0.67 per diluted common share after-tax. Excluding the impact of this item, 2023 core earnings were income of $67.1 million or $1.87 per diluted common share.

Net interest income of $149.2 million on a TE basis for the first nine months of 2024 was down 9.4% from $164.8 million in the first nine months of 2023. The TE net interest margin of 2.49% in the first nine months of 2024 decreased 29 basis points from 2.78% in the first nine months of 2023. These results are positively impacted by higher loan yields, which were 5.26% for the first nine months of 2024 compared to 4.88% in the first nine months of 2023. These results are negatively impacted by an increase in the cost of funds in the first nine months of 2024 of 2.59%, up 72 basis points from the first nine months of 2023. The year-over-year increase is largely due to increasing costs of customer deposits.

Total non-interest income in the first nine months of 2024 of $37.1 million was up 9.6% from $33.9 million in the first nine months of 2023, excluding insurance commissions and the gain on the sale of the insurance agency. Mortgage banking income decreased $0.3 million year-over-year primarily as a result of a $0.6 million decrease in gains due to lower margins.

Security gains were $0.2 million in the first nine months of 2024 compared to $1.1 million in losses during the first nine months 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 nine months of 2023. Service fees in the first nine months of 2024 were $21.2 million, a 3.2% increase from $20.6 million in the first nine months 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 nine months of 2024, compared to $8.9 million in the first nine months of 2023. Wealth management income of $5.4 million in the first nine months of 2024 was up 19.9% from $4.5 million in the first nine months of 2023. BOLI income of $4.1 million in the first nine months of 2024 included $0.5 million of claim gains, compared to $3.5 million in the first nine months of 2023, including $0.4 million of claim gains.

Excluding transaction costs, non-interest expenses in the first nine months of 2024 were $117.2 million, a 3.7% decrease from $121.7 million in the first nine months of 2023. Compensation and benefits were $66.5 million in the first nine months of 2024, compared to $71.6 million in the first nine months 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 $1.0 million on a year-over-year basis primarily due to lower rates. Data processing costs were $14.8 million in the first nine months of 2024, compared to $11.5 million in the first nine months 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 $1.7 million on a year-over-year basis due to the insurance agency sale and cost saving initiatives. The core efficiency ratio for the first nine months of 2024 of 63.0% increased from 58.3% in the first nine months 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 1.81% for the first nine months of 2024 from 1.91% for the first nine months of 2023.

The 2024 first nine months results include net loan charge-offs of $3.6 million and a total provision expense of $2.5 million, compared with net loan charge-offs of $1.9 million and a total provision expense of $3.5 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 nine months of 2024 compared to an increase in loans during the first nine months of 2023.

Total assets at $8.73 billion

Total assets at September 30, 2024, were $8.73 billion, compared to $8.78 billion at June 30, 2024, and $8.56 billion at September 30, 2023. Loans receivable were $6.59 billion at September 30, 2024, compared to $6.68 billion at June 30, 2024, and $6.70 billion at September 30, 2023. Securities at September 30, 2024, were $1.20 billion, compared to $1.09 billion at June 30, 2024, and $0.92 billion at September 30, 2023. All securities are either AFS or trading and are reflected at fair value on the balance sheet. Also, at September 30, 2024, goodwill and other intangible assets totaled $304.9 million compared to $305.9 million at June 30, 2024, and $308.8 million at September 30, 2023, with the decreases due to amortization of intangibles.

Total non-brokered deposits at September 30, 2024, were $6.86 billion, compared with $6.80 billion at June 30, 2024, and $6.67 billion at September 30, 2023. Brokered deposits were $287.4 million at September 30, 2024, compared to $382.7 million at June 30, 2024 and $392.2 million at September 30, 2023. FHLB borrowings decreased to $345.0 million at September 30, 2024, from $393.0 million at June 30, 2024, but increased from $339.0 million at September 30, 2023.

Total stockholders’ equity was $1.02 billion at September 30, 2024, compared to $0.98 billion at June 30, 2024, and $0.92 billion at September 30, 2023, with the increases primarily due to improvements in accumulated other comprehensive income. Excluding goodwill and intangibles, tangible equity was $714.1 million at September 30, 2024, an increase from $673.3 million at June 30, 2024, and from $610.7 million at September 30, 2023.

Regulatory ratios all improved during the third quarter of 2024, including CET1 of 12.17%, Tier 1 of 12.67% and Total Capital of 14.53%. All of these ratios also exceed well-capitalized guidelines pro forma for including accumulated other comprehensive income (“AOCI”), including CET1 of 10.32%, Tier 1 of 10.82% and Total Capital of 12.68%.

Dividend to be paid November 15

The Board of Directors declared a quarterly cash dividend of $0.31 per common share payable November 15, 2024, to shareholders of record at the close of business on November 8, 2024. The dividend represents an annual dividend yield of 5.2% percent based on the Premier common stock closing price on October 21, 2024. Premier has approximately 35,841,000 common shares outstanding.

About Premier Financial Corp.

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

Financial Statements and Highlights Follow-

Safe Harbor Statement

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

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

2024

2024

2023

Assets Cash and cash equivalents Cash and amounts due from depositories

84,573

72,053

57,956

81,973

70,642

Interest-bearing deposits

40,709

83,598

31,725

32,783

46,855

125,282

155,651

89,681

114,756

117,497

Available-for-sale, carried at fair value

1,196,258

1,081,120

1,014,433

946,708

911,184

Equity securities, carried at fair value

5,970

5,559

5,736

5,773

5,860

Securities investments

1,202,228

1,086,679

1,020,169

952,481

917,044

Loans (1)

6,588,728

6,682,138

6,693,745

6,739,387

6,696,869

Allowance for credit losses - loans

(76,142

)

(77,222

)

(76,679

)

(76,512

)

(76,513

)

Loans, net

6,512,586

6,604,916

6,617,066

6,662,875

6,620,356

Loans held for sale

121,611

138,604

137,523

145,641

135,218

Mortgage servicing rights

17,650

18,140

18,628

18,696

19,642

Accrued interest receivable

34,959

35,334

34,795

33,446

34,648

Federal Home Loan Bank stock

24,315

32,189

26,075

21,760

25,049

Bank Owned Life Insurance

184,655

183,409

182,203

181,544

172,906

Office properties and equipment

54,414

55,073

57,231

56,878

55,679

Real estate and other assets held for sale

326

394

255

243

387

Goodwill

295,602

295,602

Core deposit and other intangibles

9,346

10,250

11,196

12,186

13,220

Other assets

146,331

162,452

140,630

129,841

155,628

Total Assets

8,729,305

8,778,693

8,631,054

8,625,949

8,562,876

Liabilities and Stockholders’ Equity Non-interest-bearing deposits

1,425,182

1,438,764

1,467,161

1,591,979

1,545,595

Interest-bearing deposits

5,430,061

5,357,112

5,347,444

5,209,123

5,127,863

Brokered deposits

287,393

382,678

368,782

341,944

392,181

Total deposits

7,142,636

7,178,554

7,183,387

7,143,046

7,065,639

Advances from FHLB

345,000

393,000

253,000

280,000

339,000

Subordinated debentures

85,324

85,292

85,261

85,229

85,197

Advance payments by borrowers

13,358

13,391

16,861

23,277

22,781

Reserve for credit losses - unfunded commitments

3,722

3,343

3,614

4,307

4,690

Other liabilities

120,258

125,984

114,590

114,463

126,002

Total Liabilities

7,710,298

7,799,564

7,656,713

7,650,322

7,643,309

Stockholders’ Equity Preferred stock

Common stock, net

306

306

Additional paid-in-capital

690,150

689,743

689,468

690,585

690,038

Accumulated other comprehensive income (loss)

(129,149

)

(163,038

)

(162,081

)

(153,719

)

(200,282

)

Retained earnings

587,269

581,715

576,648

569,937

560,945

Treasury stock, at cost

(129,569

)

(129,597

)

(130,000

)

(131,482

)

(131,440

)

Total Stockholders’ Equity

1,019,007

979,129

974,341

975,627

919,567

Total Liabilities and Stockholders’ Equity

8,729,305

8,778,693

8,631,054

8,625,949

8,562,876

(1) Includes PPP loans of:

324

369

417

469

526

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

88,942

88,560

87,597

87,924

86,612

265,099

244,285

Investment securities

9,978

8,666

7,602

7,013

6,943

26,246

21,201

Interest-bearing deposits

654

638

609

740

652

1,901

1,737

FHLB stock dividends

595

606

534

621

690

1,735

1,989

Total interest income

100,169

98,470

96,342

96,298

94,897

294,981

269,212

Interest Expense: Deposits

45,529

43,927

42,567

39,250

34,874

132,023

83,157

FHLB advances

3,307

4,159

3,039

3,328

4,597

10,505

18,150

Subordinated debentures

1,152

1,159

1,162

1,169

1,162

3,473

3,362

Notes Payable

Total interest expense

49,988

49,245

46,768

43,747

40,633

146,001

104,669

Net interest income

50,181

49,225

49,574

52,551

54,264

148,980

164,543

Provision (benefit) for credit losses - loans

(475

)

3,173

560

2,143

245

3,258

5,599

Provision (benefit) for credit losses - unfundedcommitments

185

(271

)

(693

)

(382

)

(1,018

)

(780

)

(2,126

)

Total provision (benefit) for credit losses

(290

)

2,902

(133

)

1,761

(773

)

2,478

3,473

Net interest income after provision

50,471

46,323

49,707

50,790

55,037

146,502

161,070

Non-interest Income: Service fees and other charges

7,756

7,008

6,467

6,761

6,947

21,231

20,564

Mortgage banking income

1,194

2,047

2,350

802

3,274

5,591

5,940

Gain (loss) on sale of non-mortgage loans

Gain (loss) on sale of available for sale securities

Gain (loss) on equity securities

410

(176

)

(37

)

665

256

197

(1,118

)

Gain on sale of insurance agency

36,296

Insurance commissions

8,856

Wealth management income

1,878

1,842

1,713

1,791

1,509

5,433

4,531

Income from Bank Owned Life Insurance

1,245

1,207

1,697

1,532

1,050

4,149

3,482

Other non-interest income

150

239

134

217

480

412

Total non-interest Income

12,574

12,078

12,496

11,789

13,253

37,148

79,061

Non-interest Expense: Compensation and benefits

21,794

21,353

23,394

20,963

21,813

66,541

71,646

Occupancy

3,462

3,434

3,365

3,318

3,145

10,261

10,039

FDIC insurance premium

1,200

1,150

1,120

1,383

1,346

3,470

4,420

Financial institutions tax

1,007

980

1,035

761

989

3,022

2,802

Data processing

5,055

5,067

4,670

4,678

4,010

14,792

11,513

Amortization of intangibles

904

946

990

1,033

1,078

2,840

3,571

Other non-interest expense

5,704

5,228

5,326

5,757

5,671

16,259

17,695

Total non-interest operating expenses

39,126

38,158

39,900

37,893

38,052

117,185

121,686

Transaction costs

2,789

2,839

3,652

Total non-interest expenses

41,915

38,208

39,900

37,893

38,052

120,024

125,338

Income (loss) before income taxes

21,130

20,193

22,303

24,686

30,238

63,626

114,793

Income tax expense (benefit)

4,465

4,017

4,514

4,616

5,551

12,996

23,566

Net income (loss)

16,665

16,176

17,789

20,070

24,687

50,630

91,227

Earnings per common share: Basic

0.46

0.45

0.50

0.56

0.69

1.41

2.55

Diluted

0.46

0.45

0.50

0.56

0.69

1.41

2.55

Average Shares Outstanding: Basic

35,692

35,715

35,772

35,655

35,730

35,674

35,701

Diluted

35,737

35,793

35,771

35,772

35,794

35,778

35,769

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

100,243

98,542

96,417

96,340

94,951

295,202

269,437

Interest expense

49,988

49,245

46,768

43,747

40,633

146,001

104,669

Tax-equivalent net interest income (1)

50,255

49,297

49,649

52,593

54,318

149,201

164,768

Provision expense for credit losses

(290

)

2,902

(133

)

1,761

(773

)

2,478

3,473

Non-interest income (ex securitiesgains/losses)

12,164

12,254

12,533

11,114

12,997

36,951

80,152

Core non-interest income (ex securitiesgains/losses) (2)

12,164

12,254

12,533

11,114

12,997

36,951

43,856

Non-interest expense

41,915

38,208

39,900

37,893

38,052

120,024

125,338

Core non-interest expense (2)

39,126

38,158

39,900

37,893

38,052

117,185

121,686

Income tax expense (benefit)

4,465

4,017

4,514

4,616

5,551

12,996

23,566

Net income (loss)

16,665

16,176

17,789

20,070

24,687

50,630

91,227

Core net income (2)

19,289

16,215

17,789

20,070

24,687

53,293

67,066

Tax equivalent adjustment (1)

221

225

At Period End Total assets

8,729,305

8,778,693

8,631,054

8,625,949

8,562,876

Goodwill and intangibles

304,948

305,852

306,798

307,788

308,822

Tangible assets (3)

8,424,357

8,472,841

8,324,256

8,318,161

8,254,054

Earning assets

7,901,449

7,945,986

7,832,558

7,815,540

7,744,522

Loans

6,588,728

6,682,138

6,693,745

6,739,387

6,696,869

Allowance for loan losses

76,142

77,222

76,679

76,512

76,513

Deposits

7,142,636

7,178,554

7,183,387

7,143,046

7,065,639

Stockholders’ equity

1,019,007

979,129

974,341

975,627

919,567

Stockholders’ equity / assets

11.67

11.15

11.29

11.31

10.74

Tangible equity (3)

714,059

673,277

667,543

667,839

610,745

Tangible equity / tangible assets

8.48

7.95

8.02

8.03

7.40

Average Balances Total assets

8,696,051

8,646,024

8,591,947

8,536,193

8,582,219

8,644,861

8,538,248

Earning assets

8,036,417

8,016,157

7,956,887

7,936,648

7,969,363

8,003,275

7,904,565

Loans

6,679,329

6,730,698

6,745,823

6,754,782

6,763,232

6,718,474

6,671,687

Deposits and interest-bearing liabilities

7,556,923

7,533,717

7,476,431

7,447,324

7,486,595

7,522,483

7,470,774

Deposits

7,205,367

7,119,191

7,144,343

7,098,265

7,045,827

7,156,479

6,893,762

Stockholders’ equity

997,845

968,451

974,560

930,835

939,456

980,349

920,967

Goodwill and intangibles

305,380

306,303

307,226

308,243

309,330

306,300

326,771

Tangible equity (3)

692,465

662,148

667,334

622,592

630,126

674,049

594,196

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

0.46

0.45

0.50

0.56

0.69

1.41

2.55

EPS - Diluted

0.46

0.45

0.50

0.56

0.69

1.41

2.55

EPS - Core diluted (2)

0.54

0.45

0.50

0.56

0.69

1.49

1.87

Dividends Paid

0.31

0.31

0.93

0.93

Market Value: High

26.40

21.30

24.50

24.87

22.89

26.40

27.99

Low

19.47

18.72

18.68

15.79

15.70

18.63

13.60

23.48

20.46

20.30

24.10

17.06

23.48

17.06

Common Book Value

28.43

27.32

27.20

27.31

25.74

Tangible Common Book Value (3)

19.92

18.79

18.64

18.69

17.09

Shares outstanding, end of period (000s)

35,841

35,840

35,817

35,730

35,731

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

2.50

2.46

2.50

2.65

2.73

2.49

2.78

Return on average assets

0.76

0.75

0.83

0.93

1.14

0.78

1.43

Core return on average assets (2)

0.88

0.75

0.83

0.93

1.14

0.82

1.05

Return on average equity

6.64

6.72

7.34

8.55

10.43

6.90

13.24

Core return on average equity (2)

7.69

6.73

7.34

8.55

10.43

7.26

9.74

Return on average tangible equity

9.57

9.83

10.72

12.79

15.54

10.03

20.53

Core return on average tangible equity (2)

11.08

9.85

10.72

12.79

15.54

10.56

15.09

Efficiency ratio (4)

67.15

62.08

64.17

59.48

56.53

64.48

51.18

Core efficiency ratio (2)

62.68

61.99

64.17

59.48

56.53

62.95

58.33

Non-interest expenses / average assets

1.92

1.78

1.87

1.76

1.85

1.96

Core non-interest expenses / average assets

1.79

1.78

1.87

1.76

1.81

1.91

Effective tax rate

21.13

19.89

20.24

18.70

18.36

20.43

20.53

Core effective tax rate

19.36

19.90

20.24

18.70

18.36

19.82

18.36

Common dividend payout ratio

67.39

68.89

62.00

55.36

44.93

65.96

36.47

Core common dividend payout ratio

57.41

68.89

62.00

55.36

44.93

62.42

49.73

(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 Nine Months Ended 9/30/24 6/30/24 3/31/24 12/31/23 9/30/23 9/30/24 9/30/23 Average Balances Interest-earning assets: Loans receivable (1)

6,679,329

6,730,698

6,745,823

6,754,782

6,763,232

6,718,474

6,671,687

Securities

1,293,427

1,221,006

1,152,346

1,121,231

1,137,730

1,222,519

1,160,987

Interest Bearing Deposits

37,197

37,226

34,924

36,761

38,210

36,452

36,677

FHLB stock

26,464

27,227

23,794

23,874

30,191

25,830

35,214

Total interest-earning assets

8,036,417

8,016,157

7,956,887

7,936,648

7,969,363

8,003,275

7,904,565

Non-interest-earning assets

659,634

629,867

635,060

599,545

612,856

641,586

633,683

Total assets

8,696,051

8,646,024

8,591,947

8,536,193

8,582,219

8,644,861

8,538,248

Deposits and Interest-bearing Liabilities: Interest bearing deposits

5,780,002

5,669,033

5,650,823

5,541,498

5,490,945

5,700,244

5,256,571

FHLB advances and other

266,250

329,253

246,846

263,848

355,576

280,730

491,861

Subordinated debentures

85,306

85,273

85,242

85,211

85,179

85,274

85,147

Notes payable

Total interest-bearing liabilities

6,131,558

6,083,559

5,982,911

5,890,557

5,931,713

6,066,248

5,833,583

Non-interest bearing deposits

1,425,365

1,450,158

1,493,520

1,556,767

1,554,882

1,456,235

1,637,191

Total including non-interest-bearing deposits

7,556,923

7,533,717

7,476,431

7,447,324

7,486,595

7,522,483

7,470,774

Other non-interest-bearing liabilities

141,283

143,856

140,956

158,034

156,168

142,029

146,507

Total liabilities

7,698,206

7,677,573

7,617,387

7,605,358

7,642,763

7,664,512

7,617,281

Stockholders' equity

997,845

968,451

974,560

930,835

939,456

980,349

920,967

Total liabilities and stockholders' equity

8,696,051

8,646,024

8,591,947

8,536,193

8,582,219

8,644,861

8,538,248

IEAs/IBLs

131

132

133

135

134

132

136

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

88,949

88,567

87,603

87,929

86,618

265,119

244,303

Securities (2)

10,045

8,731

7,671

7,050

6,991

26,447

21,408

Interest Bearing Deposits

654

638

609

740

652

1,901

1,737

FHLB stock

595

606

534

621

690

1,735

1,989

Total interest-earning assets

100,243

98,542

96,417

96,340

94,951

295,202

269,437

Deposits and Interest-bearing Liabilities: Interest bearing deposits

45,529

43,927

42,567

39,250

34,874

132,023

83,157

FHLB advances and other

3,307

4,159

3,039

3,328

4,597

10,505

18,150

Subordinated debentures

1,152

1,159

1,162

1,169

1,162

3,473

3,362

Notes payable

Total interest-bearing liabilities

49,988

49,245

46,768

43,747

40,633

146,001

104,669

Non-interest bearing deposits

Total including non-interest-bearing deposits

49,988

49,245

46,768

43,747

40,633

146,001

104,669

Net interest income

50,255

49,297

49,649

52,593

54,318

149,201

164,768

Annualized Average Rates Interest-earning assets: Loans receivable

5.33

5.26

5.19

5.21

5.12

5.26

4.88

Securities (3)

3.11

2.86

2.66

2.52

2.46

2.88

2.46

Interest Bearing Deposits

7.03

6.86

6.98

8.05

6.83

6.95

6.31

FHLB stock

8.99

8.90

8.98

10.40

9.14

8.96

7.53

Total interest-earning assets

4.99

4.92

4.85

4.86

4.77

4.92

4.54

Deposits and Interest-bearing Liabilities: Interest bearing deposits

3.15

3.10

3.01

2.83

2.54

3.09

2.11

FHLB advances and other

4.97

5.05

4.92

5.05

5.17

4.99

4.92

Subordinated debentures

5.40

5.44

5.45

5.49

5.46

5.43

5.26

Notes payable

Total interest-bearing liabilities

3.26

3.24

3.13

2.97

2.74

3.21

2.39

Non-interest bearing deposits

Total including non-interest-bearing deposits

2.65

2.61

2.50

2.35

2.17

2.59

1.87

Net interest spread

1.73

1.68

1.72

1.89

2.03

1.71

2.15

Net interest margin (4)

2.50

2.46

2.50

2.65

2.73

2.49

2.78

(1) Includes average PPP loans of:

346

394

442

495

553

394

729

(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 9/30/24 6/30/24 3/31/24 12/31/23 9/30/23 Ending Balances Non-interest-bearing demand deposits

1,425,182

1,438,764

1,467,161

1,591,979

1,545,595

Savings deposits

616,910

632,831

656,122

677,679

709,938

Interest-bearing demand deposits

514,886

530,932

553,331

565,757

580,069

Money market account deposits

1,460,631

1,437,688

1,426,809

1,374,526

1,279,551

Time deposits

1,061,275

1,052,934

1,051,955

998,002

925,353

Public funds, ICS and CDARS deposits

1,776,359

1,702,727

1,659,227

1,593,159

1,632,952

Brokered deposits

287,393

382,678

368,782

341,944

392,181

Total deposits

7,142,636

7,178,554

7,183,387

7,143,046

7,065,639

Average Balances Non-interest-bearing demand deposits

1,425,365

1,450,158

1,493,520

1,556,767

1,554,882

Savings deposits

625,633

643,523

663,786

691,295

728,545

Interest-bearing demand deposits

522,535

546,496

547,168

557,210

575,744

Money market account deposits

1,473,901

1,430,619

1,411,075

1,331,623

1,278,381

Time deposits

1,057,478

1,049,566

1,025,946

959,420

912,579

Public funds, ICS and CDARS deposits

1,734,495

1,636,188

1,618,554

1,614,339

1,573,213

Brokered deposits

365,960

362,641

384,294

387,611

422,483

Total deposits

7,205,367

7,119,191

7,144,343

7,098,265

7,045,827

Average Rates Non-interest-bearing demand deposits

0.00

0.00

Savings deposits

0.10

0.03

Interest-bearing demand deposits

0.07

0.08

0.12

0.13

0.11

Money market account deposits

3.00

2.94

2.83

2.65

2.02

Time deposits

3.90

3.80

3.55

3.15

2.68

Public funds, ICS and CDARS deposits

4.38

4.52

4.48

4.30

4.18

Brokered deposits

5.40

5.32

5.33

5.46

5.36

Total deposits

2.53

2.47

2.38

2.21

1.98

Other Deposits Data Loans/Deposits Ratio

92.2

93.1

93.2

94.3

94.8

Uninsured deposits %

33.4

32.5

32.6

33.1

32.8

Adjusted uninsured deposits % (1)

17.7

17.0

17.6

18.9

17.7

Top 20 depositors %

15.1

14.4

14.0

13.9

14.1

Public funds %

19.6

18.9

18.5

17.9

18.8

Average account size (excluding brokered)

27.8

27.5

27.0

26.9

27.1

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

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

1,196,258

1,081,120

1,014,433

946,708

911,184

Equity investment at fair value (3)

5,970

5,559

5,736

5,773

5,860

Total securities at fair value

1,202,228

1,086,679

1,020,169

952,481

917,044

Cash+Securities/Assets

15.2

14.2

12.9

12.4

12.1

Projected AFS cash flow in next 12 months

138,984

115,609

89,563

69,067

66,495

AFS average life (years)

4.4

4.9

5.3

6.2

6.5

Liquidity Sources Cash and cash equivalents

125,282

155,651

89,681

114,756

117,497

Unpledged securities at fair value

578,810

477,776

398,610

314,385

280,916

FHLB borrowing capacity

1,008,061

1,247,632

1,383,086

1,336,707

1,311,091

Brokered deposits

582,816

492,359

491,447

513,767

316,697

Bank and parent lines of credit

70,000

70,000

Federal Reserve - Discount Window and BTFP (4)

722,912

702,712

680,456

620,518

471,395

Total

3,087,881

3,146,130

3,113,280

2,970,133

2,567,596

Total liquidity to adjusted uninsured deposits ratio

241.5

255.7

244.7

218.3

204.0

(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) 9/30/24 6/30/24 3/31/24 12/31/23 9/30/23 Loan Portfolio Composition Residential real estate

1,806,389

1,805,984

1,816,416

1,810,265

1,797,676

Residential real estate construction

3,248

9,649

15,009

28,794

51,637

Total residential loans

1,809,637

1,815,633

1,831,425

1,839,059

1,849,313

Commercial real estate

2,853,115

2,844,792

2,830,086

2,839,905

2,820,410

Commercial construction

486,369

513,652

535,294

528,563

502,502

Commercial excluding PPP

969,493

1,037,718

1,030,620

1,056,334

1,038,939

Core commercial loans (1)

4,308,977

4,396,162

4,396,000

4,424,802

4,361,851

Consumer direct/indirect

184,574

187,936

187,664

193,830

203,800

Home equity and improvement lines

271,652

268,699

265,362

267,960

269,053

Total consumer loans

456,226

456,635

453,026

461,790

472,853

Deferred loan origination fees

13,564

13,339

12,877

13,267

12,326

Core loans (1)

6,588,404

6,681,769

6,693,328

6,738,918

6,696,343

PPP loans

324

369

417

469

526

Total loans

6,588,728

6,682,138

6,693,745

6,739,387

6,696,869

Loans held for sale

121,611

138,604

137,523

145,641

135,218

Core residential loans (1)

1,931,248

1,954,237

1,968,948

1,984,700

1,984,531

Total loans including loans held for sale but excluding PPP

6,710,015

6,820,373

6,830,851

6,884,559

6,831,561

Undisbursed construction loan funds - residential

53,998

52,140

57,246

72,748

82,689

Undisbursed construction loan funds - commercial

159,805

123,445

151,677

208,718

284,610

Undisbursed construction loan funds - total

213,803

175,585

208,923

281,466

367,299

Total construction loans including undisbursed funds

703,420

698,886

759,226

838,823

921,438

Gross loans (2)

6,788,967

6,844,384

6,889,791

7,007,586

7,051,842

Fixed rate loans %

48.5

48.7

49.0

49.3

49.8

Floating rate loans %

18.2

16.2

16.5

15.6

15.8

Adjustable rate loans repricing within 1 year %

5.2

5.2

3.4

2.9

Adjustable rate loans repricing over 1 year %

28.1

29.9

31.1

31.7

31.5

Commercial Real Estate Loans Composition Non owner occupied excluding office

1,061,894

1,047,892

1,026,598

1,027,801

1,023,585

Non owner occupied office

184,156

186,266

189,436

205,302

207,869

Owner occupied excluding office

666,454

668,327

656,825

653,849

597,303

Owner occupied office

104,792

107,555

112,706

113,679

106,761

Multifamily

645,628

642,469

652,371

642,651

627,602

Agriculture land

120,956

121,597

121,102

121,544

119,710

Other commercial real estate

69,235

70,686

71,048

75,079

137,580

Total commercial real estate loans

2,853,115

2,844,792

2,830,086

2,839,905

2,820,410

Capital Balances Total equity

1,019,007

979,129

974,341

975,627

919,567

Less: Regulatory goodwill and intangibles

299,866

300,770

301,716

302,706

303,740

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

(129,149

)

(163,038

)

(162,081

)

(153,719

)

(200,282

)

Common equity tier 1 capital ("CET1")

848,290

841,397

834,706

826,640

816,109

Add: Tier 1 subordinated debt

35,000

35,000

Tier 1 capital

883,290

876,397

869,706

861,640

851,109

Add: Regulatory allowances

79,377

80,247

79,827

80,231

80,791

Add: Tier 2 subordinated debt

50,000

50,000

Total risk-based capital

1,012,667

1,006,644

999,533

991,871

981,900

Total risk-weighted assets

6,970,350

7,062,328

7,013,832

7,066,743

7,329,471

Capital Ratios CET1 Ratio

12.17

11.91

11.90

11.70

11.13

CET1 Ratio including AOCI

10.32

9.61

9.59

9.52

8.40

Tier 1 Capital Ratio

12.67

12.41

12.40

12.19

11.61

Tier 1 Capital Ratio including AOCI

10.82

10.10

10.09

10.02

8.88

Total Capital Ratio

14.53

14.25

14.04

13.39

Total Capital Ratio including AOCI

12.68

11.95

11.94

11.86

10.66

(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, 2024 One to four family residential real estate

1,806,389

1,782,110

8,291

0.46

15,988

0.89

Construction

703,420

701,930

290

0.04

1,200

0.17

Commercial real estate

2,853,115

2,832,985

381

0.01

19,749

0.69

Commercial

969,817

929,270

1,428

0.15

39,119

4.03

Home equity and improvement

271,652

267,518

2,392

0.88

1,742

0.64

Consumer finance

184,574

176,034

4,374

2.37

4,166

2.26

Gross loans

6,788,967

6,689,847

17,156

0.25

81,964

1.21

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

September 30, 2023 One to four family residential real estate

1,797,676

1,778,106

7,857

0.44

11,713

0.65

Construction

921,438

0.00

Commercial real estate

2,820,410

2,809,421

0.00

10,965

0.39

Commercial

1,039,465

1,025,632

1,670

0.16

12,163

1.17

Home equity and improvement

269,053

263,806

3,471

1.29

1,776

0.66

Consumer finance

203,800

196,754

4,200

2.06

2,846

1.40

Gross loans

7,051,842

6,995,157

17,222

0.24

39,463

0.56

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

1,797,355

1,780,621

886

0.05

15,848

0.88

Construction

703,420

683,741

19,679

2.80

0.00

Commercial real estate

2,851,403

2,750,149

48,571

1.70

52,683

1.85

Commercial

967,733

867,738

55,870

5.77

44,125

4.56

Home equity and improvement

270,330

268,887

0.00

1,443

0.53

Consumer finance

184,466

180,317

0.00

4,149

2.25

PCD loans

14,260

11,859

403

2.83

1,998

14.01

Gross loans

6,788,967

6,543,312

125,409

1.85

120,246

1.77

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

September 30, 2023 One to four family residential real estate

1,786,659

1,775,530

422

0.02

10,707

0.60

Construction

921,438

913,605

7,833

0.85

0.00

Commercial real estate

2,819,121

2,738,398

54,523

1.93

26,200

0.93

Commercial

1,034,943

982,927

31,930

3.09

20,086

1.94

Home equity and improvement

267,106

265,975

0.00

1,131

0.42

Consumer finance

203,584

200,965

0.00

2,619

1.29

PCD loans

18,991

13,374

2,814

14.82

2,803

14.76

Gross loans

7,051,842

6,890,774

97,522

1.38

63,546

0.90

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

691

1,378

1,283

439

2,584

3,352

3,989

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

1,839

1,835

1,842

1,844

1,850

5,516

5,583

Amortization of mortgage servicing rights

(1,320

)

(1,313

)

(1,238

)

(1,257

)

(1,291

)

(3,871

)

(3,787

)

Mortgage servicing rights valuation adjustments

(16

)

147

463

(224

)

131

594

155

503

669

1,067

363

690

2,239

1,951

Total revenue from sale/servicing of mortgage loans

1,194

2,047

2,350

802

3,274

5,591

5,940

Mortgage servicing rights: Balance at beginning of period

18,286

18,921

19,452

20,174

20,823

19,452

21,858

Loans sold, servicing retained

846

678

707

535

642

2,231

2,103

Amortization

(1,320

)

(1,313

)

(1,238

)

(1,257

)

(1,291

)

(3,871

)

(3,787

)

Balance at end of period

17,812

18,286

18,921

19,452

20,174

17,812

20,174

Valuation allowance: Balance at beginning of period

(146

)

(293

)

(756

)

(532

)

(663

)

(756

)

(687

)

Impairment recovery (charges)

(16

)

147

463

(224

)

131

594

155

Balance at end of period

(162

)

(146

)

(293

)

(756

)

(532

)

(162

)

(532

)

Net carrying value at end of period

17,650

18,140

18,628

18,696

19,642

17,650

19,642

Allowance for credit losses - loans Beginning allowance

77,222

76,679

76,512

76,513

75,921

76,512

72,816

Provision (benefit) for credit losses - loans

(475

)

3,173

560

2,143

245

3,258

5,599

Net recoveries (charge-offs)

(605

)

(2,630

)

(393

)

(2,144

)

347

(3,628

)

(1,902

)

Ending allowance

76,142

77,222

76,679

76,512

76,513

76,142

76,513

Total loans

6,588,728

6,682,138

693,745

739,387

696,869

Less: PPP loans

(324

)

(369

)

(417

)

(469

)

(526

)

Total loans ex PPP

6,588,404

6,681,769

6,693,328

6,738,918

6,696,343

Allowance for credit losses (ACL)

76,142

77,222

76,679

76,512

76,513

Add: Unaccreted purchase accounting marks

500

575

889

1,160

1,526

Adjusted ACL

76,642

77,797

77,568

77,672

78,039

ACL/Loans

1.16

1.16

1.15

1.14

Adjusted ACL/Loans ex PPP

1.16

1.16

1.15

1.17

Credit Quality Total non-performing loans (1)

81,964

64,158

39,031

35,491

39,463

Real estate owned (REO)

326

394

255

243

387

Total non-performing assets (2)

82,290

64,552

39,286

35,734

39,850

Net charge-offs (recoveries)

605

2,630

393

2,144

(347

)

Allowance for credit losses / non-performing assets

92.53

119.63

195.18

214.12

192.00

Allowance for credit losses / non-performing loans

92.90

120.36

196.46

215.58

193.89

Non-performing assets / loans plus REO

1.25

0.97

0.59

0.53

0.60

Non-performing assets / total assets

0.94

0.74

0.46

0.41

0.47

Net charge-offs (recoveries) / average loans

0.04

0.16

0.02

0.13

-0.02

Net charge-offs (recoveries) / average loans LTM

0.09

0.07

0.03

0.06

0.04

(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 Nine Months Ended (In thousands, except per share and ratio data) 9/30/24 6/30/24 3/31/24 12/31/23 9/30/23 9/30/24 9/30/23 Total non-interest expenses

41,915

38,208

39,900

37,893

38,052

120,024

125,338

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

2,789

2,839

3,652

Core non-interest expenses

39,126

38,158

39,900

37,893

38,052

117,185

121,686

Average total assets

8,696,051

8,646,024

8,591,947

8,536,193

8,582,219

8,644,861

8,538,248

Core non-interest expenses / average assets

1.79

1.78

1.87

1.76

1.81

1.91

Core non-interest expenses

39,126

38,158

39,900

37,893

38,052

117,185

121,686

Less: Insurance agency expenses

6,425

Core non-interest expenses excluding insurance agency

39,126

38,158

39,900

37,893

38,052

117,185

115,261

Non-interest income

12,574

12,078

12,496

11,789

13,253

37,148

79,061

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

36,296

Core non-interest income

12,574

12,078

12,496

11,789

13,253

37,148

42,765

Less: Securities gains (losses)

410

(176

)

(37

)

675

256

197

(1,091

)

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

12,164

12,254

12,533

11,114

12,997

36,951

43,856

Tax-equivalent net interest income

50,255

49,297

49,649

52,593

54,318

149,201

164,768

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

12,164

12,254

12,533

11,114

12,997

36,951

43,856

Total core revenues

62,419

61,551

62,182

63,707

67,315

186,152

208,624

Core non-interest expenses

39,126

38,158

39,900

37,893

38,052

117,185

121,686

Core efficiency ratio

62.68

61.99

64.17

59.48

56.53

62.95

58.33

Income (loss) before income taxes

21,130

20,193

22,303

24,686

30,238

63,626

114,793

Add: Provision (benefit) for credit losses

(290

)

2,902

(133

)

1,761

(773

)

2,478

3,473

Pre-tax pre-provision income

20,840

23,095

22,170

26,447

29,465

66,104

118,266

Add: Transaction costs (pre-tax)

2,789

2,839

3,652

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

36,296

Core pre-tax pre-provision income

23,629

23,145

22,170

26,447

29,465

68,943

85,622

Average total assets

8,696,051

8,646,024

8,591,947

8,536,193

8,582,219

8,644,861

8,538,248

Core pre-tax pre-provision return on average assets

1.08

1.08

1.04

1.23

1.36

1.07

1.34

Net income (loss)

16,665

16,176

17,789

20,070

24,687

50,630

91,227

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

36,296

Add: Transaction costs (pre-tax)

2,789

2,839

3,652

Add: Tax impact of above items

(165

)

(11

)

(176

)

8,483

Core net income

19,289

16,215

17,789

20,070

24,687

53,293

67,066

Diluted shares - Reported

35,737

35,793

35,771

35,772

35,794

35,778

35,769

Core diluted EPS

0.54

0.45

0.50

0.56

0.69

1.49

1.87

Average total assets

8,696,051

8,646,024

8,591,947

8,536,193

8,582,219

8,644,861

8,538,248

Core return on average assets

0.88

0.75

0.83

0.93

1.14

0.82

1.05

Average total equity

997,845

968,451

974,560

930,835

939,456

980,349

920,967

Core return on average equity

7.69

6.73

7.34

8.55

10.43

7.26

9.74

Average total tangible equity

692,465

662,148

667,334

622,592

630,126

674,049

594,196

Core return on average tangible equity

11.08

9.85

10.72

12.79

15.54

10.56

15.09

(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/20241022713834/en/

Paul Nungester EVP and CFO 419.785.8700 PNungester@yourpremierbank.com

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