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Share Name | Share Symbol | Market | Type |
---|---|---|---|
P.F.Changs China Bistro, Inc. (MM) | NASDAQ:PFCB | 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% | 51.47 | 0 | 01:00:00 |
First Quarter 2021 Highlights
Premier Financial Corp. (Nasdaq: PFC) (“Premier” or the “Company”) announced today 2021 first quarter results including solid core profitability. Net income for the first quarter of 2021 was $41.0 million, or $1.10 per diluted common share, compared to a net loss of $22.5 million, or $0.71 per diluted common share, for the first quarter of 2020. The year-over-year comparison is impacted by the acquisition of United Community Financial Corp. (“UCFC”) on January 31, 2020, with 2020 first quarter results including two months of operations from UCFC compared to three in first quarter of 2021. The prior year’s results include the impact of $11.5 million of acquisition-related charges for the three months ended March 31, 2020, which had an after-tax cost of $9.5 million or $0.30 per diluted common share. Additionally, the prior year’s provision expense of $45.2 million included $25.9 million related to acquisition accounting for an after-tax cost of $20.5 million, or $0.65 per diluted common share. The first quarter of 2021 included a provision credit of $7.0 million and no acquisition impact. Excluding the impact of the acquisition-related provision and charges, earnings for the three months ended March 31, 2020, were $7.5 million, or $0.24 per diluted common share.
“We are very pleased to deliver an excellent start for 2021,” said Gary M. Small, CEO of Premier. “While the banking industry is currently facing challenges in terms of the low interest rate environment and modest loan demand, Premier’s business mix continues to provide opportunities to perform and our team is taking full advantage. Our disciplined approach to credit and the continued outstanding performance from fee income businesses allowed us to move confidently with a meaningful 18% dividend increase year to date, consistent with our expectations for sustainably strong performance going forward.”
Business client support efforts
As a part of the CARES Act, the Small Business Administration created the Paycheck Protection Program (“PPP”) to provide small businesses with loans as a direct incentive to keep their workers on the payroll. Premier Bank actively participated in PPP for clients and made 2,880 loans for a total of $443.3 million for the year ended December 31, 2020. Total gross fees for these loans equaled $14.8 million. To date, Premier Bank has recognized $10.2 million as loan interest income, including $4.0 million during the three months ended March 31, 2021. Additionally, a total of $171.2 million in loans have been extinguished to date, including $114.8 million during the three months ended March 31, 2021.
Beginning in January 2021, Premier Bank participated in the second round of PPP lending and made 1,645 loans for a total of $171.7 million during the three months ended March 31, 2021. Total gross fees for these loans were $6.7 million and Premier Bank recognized $0.2 million in loan interest income during the three months ended March 31, 2021.
Net interest income up compared to first quarter of 2020
Net interest income of $56.5 million in the first quarter of 2021 was up from $45.5 million in the first quarter of 2020. The increase over the prior year’s first quarter was attributable to organic growth and three months of income from UCFC compared to two months in 2020. Net interest margin was 3.43% for the first quarter of 2021, down from 3.47% in the fourth quarter of 2020, and down from 3.78% in the first quarter of 2020. Yield on interest earning assets decreased to 3.73% in the first quarter of 2021, down 11 basis points from 3.84% in the fourth quarter of 2020. Total cost of funds decreased 8 basis points in the first quarter of 2021 to 0.31% from 0.39% in the fourth quarter of 2020 while the total cost of interest-bearing liabilities decreased 10 basis points to 0.42% from 0.52%. The 2021 first quarter results include the impact of acquisition marks and related accretion for the UCFC acquisition. Interest income includes $1.3 million of accretion and interest expense includes $0.4 million of accretion, which combined added 10 basis points of net interest margin. The first quarter results also include the impact of PPP loans. Interest income includes $5.0 million on average balances of $435.4 million, which increased net interest margin by 8 basis points. Excluding the impact of acquisition marks and PPP loans, net interest margin would be 3.25% for the first quarter of 2021 compared to 3.36% for the fourth quarter of 2020 and 3.68% for the first quarter of 2020.
“We produced net interest income growth despite margin compression for the quarter,” said Small. “The success of the multiple COVID related economic programs enacted over the past year has driven tremendous liquidity and deposit growth to the benefit of all our clients. Reinvesting these funds in a prudent manner recognizing the volatility of these deposits over time has never been more critical. We remain focused on continued reduction of our funding costs while optimizing our reinvestment yield for the appropriate time horizon.”
Non-interest income up from first quarter of 2020
Premier’s non-interest income in the first quarter of 2021 was $26.3 million compared with $14.0 million in the first quarter of 2020. Results for the first quarter of 2021 included three months of income from UCFC compared to two months in 2020.
Mortgage banking income increased to $10.5 million in the first quarter of 2021 from $0.8 million in the first quarter of 2020. Gains from the sale of mortgage loans increased to $5.6 million in the first quarter of 2021 from $4.9 million in the first quarter of 2020. Mortgage loan servicing revenue increased to $1.9 million in the first quarter of 2021 from $1.6 million in the first quarter of 2020. Amortization of mortgage servicing rights increased to $2.3 million in the first quarter of 2021 from $1.2 million in the first quarter of 2020. Premier had a positive change in the valuation adjustment in mortgage servicing assets of $5.3 million in the first quarter of 2021 compared with a negative adjustment of $4.5 million in the first quarter of 2020 with the year-over-year change primarily due to rates. In the first quarter of 2020, the rate on the 10 Year Treasury declined to 0.70% as a result of the pandemic and economic recession thus negatively impacting prepay speeds and the MSR valuation. In the first quarter of 2021, the rate on the 10 Year Treasury increased to 1.74% due to improving economic conditions and the vaccine rollout which resulted in slowing prepay speeds and the positive valuation adjustment.
For the first quarter of 2021, service fees and other charges were $5.5 million, up from $5.3 million in the first quarter of 2020. Commissions from the sale of insurance products were $4.9 million, down from $5.2 million in the first quarter of 2020. The first quarter typically includes contingent revenues, bonuses paid by insurance carriers when the Company achieves certain loss ratios or growth targets. In the first quarter of 2021, Premier’s insurance subsidiary, First Insurance Group, earned $1.1 million of contingent income, compared to $1.3 million during the first quarter of 2020. Wealth management income was $1.8 million in the first quarter of 2021, up from $1.1 million in the first quarter of 2020. Securities gains were $2.1 million in the first quarter of 2021 compared to none in the first quarter of 2020. Approximately $0.5 million of the gain was related to the sale of $24 million of mortgage-backed securities where the Company took advantage of Fed pricing to realize a gain and was reinvested in a mix of new securities that will generate the same income over the next three years. The other $1.6 million related to unrealized gains on our trading securities due to the improved market for these financial institution equities. BOLI income increased to $1.2 million in the first quarter of 2021, including $0.3 million of death benefits, compared to $0.8 million in the first quarter of 2020 and no death benefits. Other non-interest income for the first quarter of 2021 was $0.3 million compared to $0.6 million in 2020, which included $1.1 million for the reversal of an earn-out accrual that was not achieved related to a prior acquisition.
“The advantages of our diversified revenue sources was on display again this quarter,” said Small. “Benefits from mortgage and security gains added to solid contributions from insurance, wealth and service fees to drive outperformance on non-interest income and overall bottom-line results.”
Core non-interest expenses up from first quarter of 2020
Total non-interest expense was $38.8 million in the first quarter of 2021, down from $42.3 million in the first quarter of 2020, or up from $30.8 million excluding $11.5 million of acquisition related charges. Results for the first quarter of 2021 included three months of expenses from UCFC compared to two months in 2020. Compensation and benefits increased to $22.0 million in the first quarter of 2021, compared to $17.6 million in the first quarter of 2020. Occupancy expense was $4.1 million in the first quarter of 2021, up from $3.7 million in the first quarter of 2020. Data processing cost was $3.4 million in the first quarter of 2021, up from $3.0 million in the first quarter of 2020. Amortization of intangibles was $1.6 million in the first quarter of 2021, up from $1.2 million in the first quarter of 2020. Other non-interest expense was $5.6 million in the first quarter of 2021, up from $3.9 million in the first quarter of 2020.
FDIC insurance premiums were a $0.9 million expense in the first quarter of 2021, up from a $0.5 million expense in the first quarter of 2020. The increase in expense from prior year is largely due to the increased size of Premier Bank post-merger and the impact of PPP. Although PPP loan balances are excludable from the asset-based component, they are not excludable from the leverage ratio component because the Company did not borrow from the PPP Liquidity Facility and any loan funds that were in deposits would also increase the asset-based component.
Credit quality
Non-performing assets totaled $49.4 million at March 31, 2021, a decrease from $52.3 million at December 31, 2020, and an increase from $33.2 million at March 31, 2020. Accruing troubled debt restructured loans were $6.1 million at March 31, 2021, compared with $7.5 million at March 31, 2020. Loan delinquencies decreased to $9.5 million at March 31, 2021, from $18.5 million at December 31, 2020, and $10.6 million at March 31, 2020.
The 2021 first quarter results include net loan recoveries of $0.2 million and a total provision credit of $7.0 million compared with net loan recoveries of $0.8 million and a total provision expense of $45.2 million, or $19.3 million excluding acquisition-related provision, for the same period in 2020. The allowance for credit losses on loans as a percentage of total loans was 1.37% at March 31, 2021, or 1.49% excluding PPP loans, compared with 1.49% at December 31, 2020, or 1.61% excluding PPP loans, and 1.68% at March 31, 2020. The year-over-year decrease in the provision expense and allowance percentage is primarily attributable to the impact of the economic deterioration that began in the first quarter of 2020 as a result of the COVID-19 pandemic but has subsequently improved. As of March 31, 2021, Premier Bank had pandemic-related deferrals for $32.4 million of commercial loans, down from $46.0 million at December 31, 2020, and $3.4 million of retail loans, down from $7.4 million at December 31, 2020.
“The continuing improvements to economic forecasts allowed us to further reduce allowance levels this quarter,” said Paul D. Nungester, CFO of Premier. “We are comfortable with an allowance level of 1.69% excluding PPP loans and including unamortized purchase accounting marks with net loan recoveries in the quarter despite some risk migration in the portfolio.”
Total assets at $7.53 billion
Total assets at March 31, 2021, were $7.53 billion compared to $7.21 billion at December 31, 2020, and $6.54 billion at March 31, 2020. Gross loans receivable (including loans held for sale) were $5.68 billion at March 31, 2021, compared to $5.71 billion at December 31, 2020, and $5.20 billion at March 31, 2020. At March 31, 2021, gross loans receivable grew $476.0 million organically, or 9.2% from a year ago, including $443.8 million of PPP loans. Commercial loans excluding PPP increased $74.0 million from March 31, 2020 to 2021, despite a $157.0 million decrease in lines of credit. Securities at March 31, 2021, were $932.3 million compared to $737.7 million at December 31, 2020, and $534.2 million at March 31, 2020. Also, at March 31, 2021, goodwill and other intangible assets totaled $346.7 million compared to $348.3 million at December 31, 2020, and $353.1 million at March 31, 2020, with the decrease attributable to intangibles amortization.
Total deposits at March 31, 2021, were $6.35 billion compared with $6.05 billion at December 31, 2020, and $4.99 billion at March 31, 2020. At March 31, 2021, total deposits grew $1.36 billion organically, or 27.2% from a year ago.
Total stockholders’ equity was $998.2 million at March 31, 2021, compared to $982.3 million at December 31, 2020, and $916.8 million at March 31, 2020. The increase in stockholders’ equity from the prior year was due to net earnings, offset partially by the Company’s repurchase of 39,200 common shares for $1.1 million during the first quarter of 2021. At March 31, 2021, 1,960,800 common shares remained available for repurchase under the Company’s existing authorization.
Dividend to be paid May 14
The Board of Directors declared a quarterly cash dividend of $0.26 per common share, an increase of $0.02 per common share, payable May 14, 2021, to shareholders of record at the close of business on May 7, 2021. The dividend represents an annual dividend of 3.14 percent based on the Premier common stock closing price on April 19, 2021. Premier has approximately 37,304,000 common shares outstanding.
Conference call
Premier will host a conference call at 11:00 a.m. ET on Wednesday, April 21, 2021, to discuss the earnings results and business trends. The conference call may be accessed by calling 1-877-444-1726. Internet access to the call is also available (in listen-only mode) at the following URL: https://services.choruscall.com/links/pfc210421.html. The replay of the conference call will be available at www.PremierFinCorp.com until April 21, 2022, at 9:00 a.m. ET.
About Premier Financial Corp.
Premier Financial Corp. (Nasdaq: PFC), headquartered in Defiance, Ohio, is the holding company for Premier Bank and First Insurance Group. Premier Bank, headquartered in Youngstown, Ohio, operates 75 branches and 12 loan offices in Ohio, Michigan, Indiana, Pennsylvania and West Virginia (West Virginia office operates as Home Savings Bank) and serves clients through a team of wealth professionals dedicated to each community banking branch. First Insurance Group is a full-service insurance agency with ten offices in Ohio. For more information, visit the company’s website at PremierFinCorp.com.
Financial Statements and Highlights Follow-
Safe Harbor Statement
This news release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21 B of the Securities Exchange Act of 1934, as amended. Those statements may include, but are not limited to, all statements regarding intent, beliefs, expectations, projections, forecasts and plans of Premier Financial Corp. and its management, and specifically include statements regarding: changes in economic conditions; the nature, extent and timing of governmental actions and reforms; future movements of interest rates; the ability to benefit from a changing interest rate environment; the production levels of mortgage loan generation; the ability to continue to grow loans and deposits; the ability to sustain credit quality ratios at current or improved levels; continued strength in the market area for Premier Bank; the ability to sell real estate owned properties; and the ability to grow in existing and adjacent markets. These forward-looking statements involve numerous risks and uncertainties, including: impacts from the novel coronavirus (COVID-19) pandemic on our business, operations, customers and capital position; higher default rates on loans made to our customers related to COVID-19 and its impact on our customers’ operations and financial condition; the impact of COVID-19 on local, national and global economic conditions; unexpected changes in interest rates or disruptions in the mortgage market related to COVID-19 or responses to the health crisis; the effects of various governmental responses to the COVID-19 pandemic; those inherent in general and local banking, insurance and mortgage conditions; competitive factors specific to markets in which Premier Financial Corp. and its subsidiaries operate; future interest rate levels; legislative and regulatory decisions or capital market conditions; and other risks and uncertainties detailed from time to time in our Securities and Exchange Commission (SEC) filings, including in our Annual Report on Form 10-K for the year ended December 31, 2020. One or more of these factors have affected or could in the future affect Premier’s business and financial results in future periods and could cause actual results to differ materially from plans and projections. Therefore, there can be no assurances that the forward-looking statements included in this news release will prove to be accurate. In light of the significant uncertainties in the forward-looking statements included herein, 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. All forward-looking statements made in this news release 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 March 31, 2021, consolidated financial statements as part of its Quarterly Report on Form 10-Q to be filed with the SEC. Accordingly, subsequent events could occur that may cause Premier to update its critical accounting estimates and to revise its financial information from that which is contained in this news release.
Non-GAAP Reporting Measures
We believe that net income, as defined by U.S. GAAP, is the most appropriate earnings measurement. However, we consider core net income and core pre-tax pre-provision income to be useful supplemental measures of our operating performance. We define core net income as net income excluding the after-tax impact of acquisition related charges. We define core pre-tax pre-provision income as pre-tax pre-provision income excluding the pre-tax impact of acquisition related charges. We believe that these metrics are useful supplemental measures of operating performance because investors and equity analysts may use these measures to compare the operating performance of the Company between periods or as compared to other financial institutions or other companies on a consistent basis without having to account for one-time acquisition related charges. Our supplemental reporting measures and similarly entitled financial measures are widely used by investors, equity and debt analysts and ratings agencies in the valuation, comparison, rating and investment recommendations of companies. Our management uses these financial measures to facilitate internal and external comparisons to historical operating results and in making operating decisions. Additionally, they are utilized by the Board of Directors to evaluate management. The supplemental reporting measures do not represent net income or cash flow provided from operating activities as determined in accordance with U.S. GAAP and should not be considered as alternative measures of profitability or liquidity. Finally, the supplemental reporting measures, as defined by us, may not be comparable to similarly entitled items reported by other financial institutions or other companies. Please see the exhibits for reconciliations of our supplemental reporting measures.
Consolidated Balance Sheets (Unaudited) Premier Financial Corp.March 31,
December 31,
(in thousands)2021
2020
Assets Cash and cash equivalents Cash and amounts due from depository institutions$
68,689
$
79,593
Interest-bearing deposits
235,058
79,673
303,747
159,266
Available-for sale, carried at fair value
918,590
736,654
Trading securities, carried at fair value
13,753
1,090
Securities investments
932,343
737,744
Loans
5,459,683
5,491,240
Allowance for credit losses - loans
(74,754
)
(82,079
)
Loans, net
5,384,929
5,409,161
Loans held for sale
215,945
221,616
Mortgage servicing rights
18,503
13,153
Accrued interest receivable
24,355
25,434
Federal Home Loan Bank stock
9,328
16,026
Bank Owned Life Insurance
145,060
144,784
Office properties and equipment
57,358
58,665
Real estate and other assets held for sale
54
343
Goodwill
317,948
317,948
Core deposit and other intangibles
28,714
30,337
Other assets
92,178
77,257
Total Assets
$
7,530,462
$
7,211,734
Liabilities and Stockholders’ Equity Non-interest-bearing deposits
$
1,728,895
$
1,597,262
Interest-bearing deposits
4,623,024
4,450,579
Total deposits
6,351,919
6,047,841
Advances from FHLB and PPPLF
-
-
Notes payable and other interest-bearing liabilities
-
-
Subordinated debentures
84,881
84,860
Advance payments by borrowers for tax and insurance
20,773
21,748
Reserve for credit losses - unfunded commitments
5,901
5,350
Other liabilities
68,802
69,659
Total Liabilities
6,532,276
6,229,458
Stockholders’ Equity Preferred stock
-
-
Common stock, net
306
306
Additional paid-in-capital
689,747
689,390
Accumulated other comprehensive income (loss)
(502
)
15,004
Retained earnings
388,467
356,414
Treasury stock, at cost
(79,832
)
(78,838
)
Total stockholders’ equity
998,186
982,276
Total Liabilities and Stockholders’ Equity
$
7,530,462
$
7,211,734
Consolidated Statements of Income (Unaudited) Premier Financial Corp. Three Months Ended March 31, (in thousands, except per share amounts)
2021
2020
Interest Income: Loans
$
57,565
$
51,460
Investment securities
3,682
2,717
Interest-bearing deposits
66
230
FHLB stock dividends
59
115
Total interest income
61,372
54,522
Interest Expense: Deposits
4,164
7,771
FHLB advances and other
-
1,006
Subordinated debentures
695
273
Notes Payable
-
9
Total interest expense
4,859
9,059
Net interest income
56,513
45,463
Provision (benefit) for credit losses - loans
(7,514
)
43,786
Provision (benefit) for credit losses - unfunded commitments
551
1,458
Total provision (benefit) for credit losses
(6,963
)
45,244
Net interest income after provision
63,476
219
Non-interest Income: Service fees and other charges
5,469
5,318
Mortgage banking income
10,533
848
Gain on sale of non-mortgage loans
-
234
Gain (loss) on sale of available for sale securities
516
-
Gain (loss) on trading securities
1,610
-
Insurance commissions
4,882
5,155
Wealth management income
1,757
1,091
Income from Bank Owned Life Insurance
1,168
781
Other non-interest income
340
572
Total Non-interest Income
26,275
13,999
Non-interest Expense: Compensation and benefits
21,997
17,585
Occupancy
4,112
3,731
FDIC insurance premium
898
492
Financial institutions tax
1,190
834
Data processing
3,382
3,040
Amortization of intangibles
1,623
1,245
Acquisition related charges
-
11,486
Other non-interest expense
5,601
3,897
Total Non-interest Expense
38,803
42,310
Income (loss) before income taxes
50,948
(28,092
)
Income tax expense (benefit)
9,952
(5,610
)
Net Income (Loss)$
40,996
$
(22,482
)
Earnings (loss) per common share: Basic$
1.10
$
(0.71
)
Diluted$
1.10
$
(0.71
)
Average Shares Outstanding: Basic
37,278
31,666
Diluted
37,357
31,666
Premier Financial Corp. Financial Summary and Comparison (Unaudited) Three Months Ended March 31, (dollars in thousands, except per share data)
2021
2020
% change
Summary of Operations Tax-equivalent interest income (2)$
61,609
$
54,773
12.5
%
Interest expense
4,859
9,059
(46.4
)
Tax-equivalent net interest income (2)
56,750
45,714
24.1
Provision (benefit) for credit losses
(6,963
)
45,244
(115.4
)
Core provision (benefit) for credit losses (4)
(6,963
)
19,295
(136.1
)
Investment securities gains (losses)
2,126
-
NM
Non-interest income (excluding securities gains/losses)
24,149
13,999
72.5
Non-interest expense
38,803
42,310
(8.3
)
Core non-interest expense (4)
38,803
30,824
25.9
Income tax expense (benefit)
9,952
(5,610
)
(277.4
)
Net income (loss)
40,996
(22,482
)
(282.4
)
Core net income (4)
40,996
7,470
448.8
Tax equivalent adjustment (2)
237
251
(5.6
)
At Period End Assets
7,530,462
6,538,942
15.2
Earning assets
6,852,357
5,889,186
16.4
Loans
5,459,683
5,113,917
6.8
Allowance for credit losses - loans
74,754
85,859
(12.9
)
Deposits
6,351,919
4,994,148
27.2
Stockholders’ equity
998,186
916,843
8.9
Average Balances Assets
7,338,886
5,357,598
37.0
Earning assets
6,611,343
4,862,532
36.0
Loans
5,629,715
4,317,857
30.4
Deposits and interest-bearing liabilities
6,275,160
4,488,003
39.8
Deposits
6,190,292
4,240,053
46.0
Stockholders’ equity
972,653
786,837
23.6
Stockholders’ equity / assets
13.25
%
14.69
%
(9.8
)
Per Common Share Data Net Income (Loss) Basic$
1.10
$
(0.71
)
(254.7
)
Diluted
1.10
(0.71
)
(254.4
)
Core diluted (4)
1.10
0.24
358.3
Dividends Paid
0.24
0.22
9.1
Market Value: High
$
35.90
$
32.05
12.0
Low
22.23
10.98
102.5
Close
33.26
14.74
125.6
Common Book Value
26.78
24.58
8.9
Tangible Common Book Value (1)
17.48
15.11
15.7
Shares outstanding, end of period (000s)
37,275
37,288
(0.0
)
Performance Ratios (annualized) Tax-equivalent net interest margin (2)
3.43
%
3.78
%
(9.3
)
Return on average assets
2.27
%
-1.69
%
(234.1
)
Core return on average assets (4)
2.27
%
0.56
%
304.0
Return on average equity
17.09
%
-11.48
%
(248.9
)
Core return on average equity (4)
17.09
%
3.82
%
347.7
Return on average tangible equity
26.60
%
-17.45
%
(252.5
)
Core return on average tangible equity (4)
26.60
%
5.80
%
358.9
Efficiency ratio (3)
47.96
%
70.86
%
(32.3
)
Core efficiency ratio (4)
47.96
%
51.62
%
(7.1
)
Effective tax rate
19.53
%
19.97
%
(2.2
)
Dividend payout ratio (core)
21.82
%
91.67
%
(76.2
)
Note: 2020 results include two months of operations from UCFC compared to three for comparable periods in 2021. (1) Tangible common book value = total stockholders' equity less the sum of goodwill, core deposit and other intangibles, and preferred stock divided by shares outstanding at the end of the period. (2) Interest income on tax-exempt securities and loans has been adjusted to a tax-equivalent basis using the statutory federal income tax rate of 21%. (3) Efficiency ratio = Non-interest expense divided by sum of tax-equivalent net interest income plus non-interest income, excluding securities gains or losses, net. (4) Core items exclude the impact of acquisition related provision ("CECL double-dip") and other charges. See non-GAAP reconciliations. NM Percentage change not meaningful Premier Financial Corp. (dollars in thousands) Three Months Ended March 31, Mortgage Banking Summary
2021
2020
Revenue from sales and servicing of mortgage loans: Gain from sale of mortgage loans
$
5,640
$
4,902
Mortgage loan servicing revenue (expense): Mortgage loan servicing revenue
1,917
1,594
Amortization of mortgage servicing rights
(2,344
)
(1,163
)
Mortgage servicing rights valuation adjustments
5,320
(4,485
)
4,893
(4,054
)
Total revenue from sale and servicing of mortgage loans$
10,533
$
848
Mortgage servicing rights: Balance at beginning of period
$
21,666
$
10,801
Loans sold, servicing retained
2,374
1,376
Mortgage servicing rights acquired
-
9,747
Amortization
(2,344
)
(1,163
)
Carrying value before valuation allowance at end of period
21,696
20,761
Valuation allowance: Balance at beginning of period
(8,513
)
(534
)
Impairment recovery (charges)
5,320
(4,485
)
Balance at end of period
(3,193
)
(5,019
)
Net carrying value at end of period$
18,503
$
15,742
COVID-19 Deferrals Update
3/31/2021
12/31/2020
Commercial loan deferrals$
32,370
$
46,038
% of commercial loans
0.8
%
1.2
%
% of total loans
0.6
%
0.8
%
Retail loan deferrals$
3,414
$
7,412
% of retail loans
0.2
%
0.4
%
% of total loans
0.1
%
0.1
%
Total loan deferrals$
35,784
$
53,450
% of total loans
0.7
%
1.0
%
Commercial Loan Deferral Rollforward12/31/20 Balance
New Deferrals
Payoffs/ Changes
Return to Pay(1)
3/31/21 Balance
1Q21 Extensions
Interest only 1-3 months$
5,437
$
-
$
6,975
$
-
$
12,412
$
6,975
Interest only 4-5 months
-
-
74
-
74
74
Interest only 6 months
26,688
-
(1,785
)
(5,075
)
19,828
-
Deferred payment 1-90 days
10,404
-
379
(10,727
)
56
56
Deferred payment 91-179 days
-
-
-
-
-
-
Deferred payment 180 days
3,509
-
(62
)
(3,447
)
-
-
Total$
46,038
$
-
$
5,581
$
(19,249
)
$
32,370
$
7,105
Commercial Loan Deferral Expirations Update3/31/21 Balance
April$
25,320
May
7,050
June
-
July
-
August
-
September
-
Total
$
32,370
Note: 2020 results include two months of operations from UCFC compared to three for comparable periods in 2021.
(1) Represents approximately 92.7% of previously disclosed first quarter 2021 scheduled expirations. Premier Financial Corp. Yield Analysis Three Months Ended March 31, (dollars in thousands)2021
2020
Average Yield Average Yield Balance Interest(1) Rate(2) Balance Interest(1) Rate(2) Interest-earning assets: Loans receivable$
5,629,715
$
57,579
4.09
%
$
4,317,857
$
51,485
4.80
%
Securities
823,986
3,905
1.90
%
449,744
2,943
2.69
%
Interest Bearing Deposits
145,658
66
0.18
%
68,980
230
1.34
%
FHLB stock
11,984
59
1.97
%
25,951
115
1.78
%
Total interest-earning assets
6,611,343
61,609
3.73
%
4,862,532
54,773
4.54
%
Non-interest-earning assets
727,543
495,066
Total assets$
7,338,886
$
5,357,598
Deposits and Interest-bearing liabilities: Interest bearing deposits$
4,546,272
$
4,164
0.37
%
$
3,343,833
$
7,771
0.93
%
FHLB advances and other
-
-
0.00
%
209,508
1,006
1.93
%
Subordinated debentures
84,868
695
3.28
%
36,083
273
3.04
%
Notes payable
-
-
-
2,359
9
1.53
%
Total interest-bearing liabilities
4,631,140
4,859
0.42
%
3,591,783
9,059
1.01
%
Non-interest bearing deposits
1,644,020
-
-
896,220
-
-
Total including non-interest-bearing deposits
6,275,160
4,859
0.31
%
4,488,003
9,059
0.81
%
Other non-interest-bearing liabilities
91,073
82,758
Total liabilities
6,366,233
4,570,761
Stockholders' equity
972,653
786,837
Total liabilities and stockholders' equity$
7,338,886
$
5,357,598
Net interest income; interest rate spread$
56,750
3.31
%
$
45,714
3.53
%
Net interest margin (4)3.43
%
3.78
%
Average interest-earning assets to average interest bearing liabilities143
%
135
%
Note: 2020 results include two months of operations from UCFC compared to three for comparable periods in 2021. (1) Interest on certain tax exempt loans and securities is not taxable for Federal income tax purposes. In order to compare the tax-exempt yields on these assets to taxable yields, the interest earned on these assets is adjusted to a pre-tax equivalent amount based on the marginal corporate federal income tax rate of 21%. (2) Annualized. (3) Securities yield = annualized interest income divided by the average balance of securities, excluding average unrealized gains/losses. (4) Net interest margin is tax equivalent net interest income divided by average interest-earning assets. Premier Financial Corp. Selected Quarterly Information (dollars in thousands, except per share data)1st Qtr 2021
4th Qtr 2020
3rd Qtr 2020
2nd Qtr 2020
1st Qtr 2020
Summary of Operations Tax-equivalent interest income (1)$
61,609
$
61,067
$
60,418
$
62,705
$
54,773
Interest expense
4,859
5,849
6,888
8,145
9,059
Tax-equivalent net interest income (1)
56,750
55,218
53,530
54,560
45,714
Provision (benefit) for credit losses
(6,963
)
(6,764
)
2,794
2,975
45,244
Core provision (benefit) for credit losses (3)
(6,963
)
(6,764
)
2,794
2,975
19,295
Investment securities gains (losses)
2,126
76
1,480
(2
)
-
Non-interest income (excluding securities gains/losses)
24,149
18,594
23,520
23,017
13,999
Non-interest expense
38,803
41,313
43,563
37,984
42,310
Core non-interest expense (3)
38,803
39,123
38,445
35,885
30,824
Income tax expense (benefit)
9,952
8,240
6,259
7,303
(5,610
)
Net income (loss)
40,996
30,848
25,655
29,057
(22,482
)
Core net income (3)
40,996
32,577
28,587
30,715
7,470
Tax equivalent adjustment (1)
237
251
259
256
251
At Period End Total assets
$
7,530,462
$
7,211,734
$
6,974,953
$
7,013,811
$
6,538,942
Earning assets
6,852,357
6,546,299
6,340,132
6,345,655
5,889,186
Loans
5,459,683
5,491,240
5,470,548
5,457,238
5,113,917
Allowance for loan losses
74,754
82,079
88,917
88,555
85,859
Deposits
6,351,919
6,047,841
5,795,757
5,759,843
4,994,148
Stockholders’ equity
998,186
982,276
959,025
940,968
916,843
Stockholders’ equity / assets
13.26
%
13.62
%
13.75
%
13.42
%
14.02
%
Goodwill
317,948
317,948
317,948
317,948
317,520
Average Balances Total assets
$
7,338,886
$
7,089,060
$
6,935,783
$
7,005,783
$
5,357,598
Earning assets
6,611,343
6,363,306
6,211,267
6,247,037
4,862,532
Loans
5,629,715
5,609,116
5,555,621
5,389,805
4,317,857
Deposits and interest-bearing liabilities
6,275,160
6,044,049
5,901,652
5,963,127
4,488,003
Deposits
6,190,292
5,956,550
5,738,006
5,490,986
4,240,053
Stockholders’ equity
972,653
946,223
927,506
932,793
786,837
Stockholders’ equity / assets
13.25
%
13.35
%
13.37
%
13.31
%
14.70
%
Per Common Share Data Net Income (Loss): Basic$
1.10
$
0.83
$
0.69
$
0.78
$
(0.71
)
Diluted
1.10
0.82
0.69
0.78
(0.71
)
Core diluted (3)
1.10
0.87
0.77
0.82
0.24
Dividends Paid
0.24
0.22
0.22
0.22
0.22
Market Value: High
$
35.90
$
23.49
$
21.24
$
20.11
$
32.05
Low
22.23
14.90
14.74
12.95
10.98
Close
33.26
23.00
15.58
17.67
14.74
Common Book Value
26.78
26.34
25.71
25.23
24.58
Shares outstanding, end of period (000s)
37,275
37,291
37,297
37,296
37,288
Performance Ratios (annualized) Tax-equivalent net interest margin (1)
3.43
%
3.47
%
3.47
%
3.51
%
3.78
%
Return on average assets
2.27
%
1.73
%
1.49
%
1.67
%
-1.69
%
Core return on average assets (3)
2.27
%
1.83
%
1.64
%
1.76
%
0.56
%
Return on average equity
17.09
%
12.97
%
11.12
%
12.53
%
-11.48
%
Core return on average equity (3)
17.09
%
13.70
%
12.26
%
13.24
%
3.82
%
Return on average tangible equity
26.60
%
20.37
%
17.71
%
20.13
%
-17.45
%
Core return on average tangible equity (3)
26.60
%
21.51
%
19.73
%
21.28
%
5.80
%
Efficiency ratio (2)
47.96
%
55.97
%
56.54
%
48.96
%
70.86
%
Core efficiency ratio (3)
47.96
%
53.00
%
49.90
%
46.26
%
51.62
%
Effective tax rate
19.53
%
21.08
%
19.61
%
20.09
%
19.97
%
Common dividend payout ratio (core)
21.82
%
25.29
%
28.57
%
26.83
%
91.67
%
Note: 2020 results include two months of operations from UCFC compared to three for comparable periods in 2021. (1) Interest income on tax-exempt securities and loans has been adjusted to a tax-equivalent basis using the statutory federal income tax rate of 21%. (2) Efficiency ratio = Non-interest expense divided by sum of tax-equivalent net interest income plus non-interest income, excluding securities gains or losses, net. (3) Core items exclude the impact of acquisition related provision ("CECL double-dip") and other charges. See non-GAAP reconciliations. Premier Financial Corp. Selected Quarterly Information (dollars in thousands, except per share data)1st Qtr 2021
4th Qtr 2020
3rd Qtr 2020
2nd Qtr 2020
1st Qtr 2020
Loan Portfolio Composition One to four family residential real estate$
1,168,559
$
1,201,051
$
1,194,940
$
1,226,106
$
1,265,901
Construction
749,190
667,649
580,060
509,548
521,442
Commercial real estate
2,402,067
2,383,001
2,328,944
2,266,189
2,200,266
Commercial
1,172,910
1,202,353
1,263,565
1,244,549
897,865
Consumer finance
117,539
120,729
128,995
146,139
137,679
Home equity and improvement
257,764
272,701
281,010
290,459
301,146
Total loans
5,868,029
5,847,484
5,777,514
5,682,990
5,324,299
Less: Undisbursed loan funds
405,983
355,065
300,174
221,137
206,236
Deferred loan origination fees
2,363
1,179
6,792
4,615
4,146
Allowance for credit losses - loans
74,754
82,079
88,917
88,555
85,859
Net Loans
$
5,384,929
$
5,409,161
$
5,381,631
$
5,368,683
$
5,028,058
Allowance for credit losses - loans Beginning allowance
$
82,079
$
88,917
$
88,555
$
85,859
$
31,243
CECL adoption
-
-
-
-
2,354
Acquisition related allowance/provision (non PCD)
-
-
-
-
25,949
Acquisition related allowance/goodwill (PCD)
-
-
-
-
7,698
Provision (benefit) for credit losses - loans
(7,514
)
(6,158
)
3,658
1,868
17,837
Net recoveries (charge-offs)
189
(680
)
(3,296
)
828
778
Ending allowance
$
74,754
$
82,079
$
88,917
$
88,555
$
85,859
Credit Quality Total non-performing loans (1)
$
49,298
$
51,983
$
48,360
$
39,470
$
32,692
Real estate owned (REO)
53
343
521
573
548
Total non-performing assets (2)
$
49,351
$
52,025
$
48,881
$
40,043
$
33,240
Net charge-offs (recoveries)
(189
)
680
3,296
(828
)
(778
)
Restructured loans, accruing (3)
6,068
7,173
8,499
7,916
7,474
Allowance for credit losses - loans / loans
1.37
%
1.49
%
1.63
%
1.62
%
1.68
%
Allowance for credit losses - loans / non-performing assets
151.47
%
156.86
%
182.05
%
221.15
%
259.07
%
Allowance for credit losses - loans / non-performing loans
151.64
%
157.90
%
184.01
%
224.36
%
263.43
%
Non-performing assets / loans plus REO
0.90
%
0.95
%
0.89
%
0.73
%
0.65
%
Non-performing assets / total assets
0.66
%
0.73
%
0.70
%
0.57
%
0.51
%
Net charge-offs / average loans (annualized)
-0.01
%
0.05
%
0.24
%
-0.06
%
-0.07
%
Deposit Balances Non-interest-bearing demand deposits$
1,728,895
$
1,597,262
$
1,436,807
$
1,454,842
$
1,041,315
Interest-bearing demand deposits and money market
2,806,271
2,627,669
2,511,263
2,361,486
2,052,935
Savings deposits
761,899
700,480
674,354
671,650
623,331
Retail time deposits less than $250,000
842,624
912,006
975,658
1,078,758
1,091,003
Retail time deposits greater than $250,000
212,230
210,424
197,675
193,107
185,564
Total deposits
$
6,351,919
$
6,047,841
$
5,795,757
$
5,759,843
$
4,994,148
(1) Non-performing loans consist of non-accrual loans. (2) Non-performing assets are non-performing loans plus real estate and other assets acquired by foreclosure or deed-in-lieu thereof. (3) Accruing restructured loans are loans with known credit problems that are not contractually past due and therefore are not included in non-performing loans. Premier Financial Corp. Loan Delinquency Information (dollars in thousands) Total Balance Current
30 to 89 days
past due
% of Total Non Accrual Loans % of Total March 31, 2021 One to four family residential real estate$
1,168,559
$
1,150,194
$
5,622
0.5
%
$
12,743
1.1
%
Construction
749,190
748,362
584
0.1
%
244
0.0
%
Commercial real estate
2,402,067
2,379,138
222
0.0
%
22,707
0.9
%
Commercial
1,172,910
1,164,587
298
0.0
%
8,025
0.7
%
Consumer finance
117,539
114,214
1,424
1.2
%
1,901
1.6
%
Home equity and improvement
257,764
252,732
1,354
0.5
%
3,678
1.4
%
Total loans$
5,868,029
$
5,809,227
$
9,504
0.2
%
$
49,298
0.8
%
December 31, 2020 One to four family residential real estate$
1,201,051
$
1,178,876
$
8,318
0.7
%
$
13,857
1.2
%
Construction
667,649
664,248
2,294
0.3
%
1,107
0.2
%
Commercial real estate
2,383,001
2,359,299
993
0.0
%
22,709
1.0
%
Commercial
1,202,353
1,192,949
9
0.0
%
9,395
0.8
%
Consumer finance
120,729
116,632
2,248
1.9
%
1,849
1.5
%
Home equity and improvement
272,701
265,023
4,612
1.7
%
3,066
1.1
%
Total loans$
5,847,484
$
5,777,027
$
18,474
0.3
%
$
51,983
0.9
%
March 31, 2020 One to four family residential real estate$
1,265,901
$
1,253,304
$
5,890
0.5
%
$
6,707
0.5
%
Construction
521,442
521,442
-
0.0
%
-
0.0
%
Commercial real estate
2,200,266
2,180,660
220
0.0
%
19,386
0.9
%
Commercial
897,865
893,605
299
0.0
%
3,961
0.4
%
Consumer finance
137,679
135,727
712
0.5
%
1,240
0.9
%
Home equity and improvement
301,146
296,330
3,517
1.2
%
1,299
0.4
%
Total loans$
5,324,299
$
5,281,068
$
10,638
0.2
%
$
32,593
0.6
%
Loan Risk Ratings Information (dollars in thousands) Total Balance Pass Rated Special Mention % of Total Classified % of Total March 31, 2021 One to four family residential real estate$
1,154,141
$
1,145,356
$
1,173
0.1
%
$
7,612
0.7
%
Construction
749,190
727,821
21,126
2.8
%
243
0.0
%
Commercial real estate
2,380,688
2,216,699
115,758
4.9
%
48,231
2.0
%
Commercial
1,156,948
1,108,381
25,400
2.2
%
23,167
2.0
%
Consumer finance
116,723
115,044
-
0.0
%
1,679
1.4
%
Home equity and improvement
253,049
250,944
-
0.0
%
2,105
0.8
%
PCD loans
57,290
23,956
1,748
3.1
%
31,586
55.1
%
Total loans$
5,868,029
$
5,588,201
$
165,205
2.8
%
$
114,623
2.0
%
December 31, 2020 One to four family residential real estate$
1,186,262
$
1,183,104
$
796
0.1
%
$
2,362
0.2
%
Construction
667,649
647,906
19,743
3.0
%
-
0.0
%
Commercial real estate
2,359,713
2,202,167
111,213
4.7
%
46,333
2.0
%
Commercial
1,174,545
1,143,715
23,713
2.0
%
7,117
0.6
%
Consumer finance
119,841
119,736
-
0.0
%
105
0.1
%
Home equity and improvement
268,311
267,872
-
0.0
%
439
0.2
%
PCD loans
71,163
33,311
3,832
5.4
%
34,020
47.8
%
Total loans$
5,847,484
$
5,597,811
$
159,297
2.7
%
$
90,376
1.5
%
March 31, 2020 One to four family residential real estate$
1,248,250
$
1,244,175
$
390
0.0
%
$
3,685
0.3
%
Construction
520,408
520,408
-
0.0
%
-
0.0
%
Commercial real estate
2,163,196
2,107,879
28,045
1.3
%
27,272
1.3
%
Commercial
871,944
839,893
20,477
2.3
%
11,574
1.3
%
Consumer finance
136,426
136,382
-
0.0
%
44
0.0
%
Home equity and improvement
294,878
294,556
-
0.0
%
322
0.1
%
PCD loans
89,197
27,851
21,151
23.7
%
40,195
45.1
%
Total loans$
5,324,299
$
5,143,293
$
70,063
1.3
%
$
83,092
1.6
%
Premier Financial Corp. Non-GAAP Reconciliations (In thousands, except per share and ratio data) 1st Qtr 2021 4th Qtr 2020 3rd Qtr 2020 2nd Qtr 2020 1st Qtr 2020 Acquisition related charges (pre-tax)$
-
$
2,190
$
3,711
$
2,099
$
11,486
Less: Tax benefit of acquisition related charges
-
460
779
441
2,034
Acquisition related charges (after-tax)
$
-
$
1,730
$
2,932
$
1,658
$
9,452
Total non-interest expenses
$
38,803
$
41,313
$
43,563
$
37,984
$
42,310
Less: Acquisition related charges (pre-tax)
-
2,190
3,711
2,099
11,486
Less: FHLB prepayment charges(1)
-
-
1,407
-
-
Core non-interest expenses
$
38,803
$
39,123
$
38,445
$
35,885
$
30,824
Acquisition related provision (pre-tax)
$
-
$
-
$
-
$
-
$
25,949
Less: Tax benefit of acquisition related provision
-
-
-
-
5,449
Acquisition related provision (after-tax)
$
-
$
-
$
-
$
-
$
20,500
Provision (benefit) for credit losses
$
(6,963
)
$
(6,764
)
$
2,794
$
2,975
$
45,244
Less: Acquisition related provision (pre-tax)
-
-
-
-
25,949
Core provision (benefit) for credit losses
$
(6,963
)
$
(6,764
)
$
2,794
$
2,975
$
19,295
Non-interest income
$
26,275
$
18,669
$
25,000
$
23,015
$
13,999
Less: Securities gains (losses)
2,126
76
1,480
(2
)
-
Non-interest income (excluding securities gains/losses)
$
24,149
$
18,593
$
23,520
$
23,017
$
13,999
Tax-equivalent net interest income
$
56,750
$
55,218
$
53,530
$
54,560
$
45,714
Non-interest income (excluding securities gains/losses)
24,149
18,593
23,520
23,017
13,999
Total revenues
80,899
73,811
77,050
77,577
59,713
Core non-interest expenses
$
38,803
$
39,123
$
38,445
$
35,885
$
30,824
Core efficiency ratio
47.96
%
53.00
%
49.90
%
46.26
%
51.62
%
Income (loss) before income taxes$
50,948
$
39,087
$
31,914
$
36,360
$
(28,092
)
Add: Provision (benefit) for credit losses
(6,963
)
(6,764
)
2,794
2,975
45,244
Pre-tax pre-provision income
43,985
32,323
34,708
39,335
17,152
Add: Acquisition related charges (pre-tax)
-
2,190
3,711
2,099
11,486
Core pre-tax pre-provision income
$
43,985
$
34,513
$
38,419
$
41,434
$
28,638
Average total assets
$
7,338,886
$
7,089,060
$
6,935,783
$
7,005,783
$
5,357,598
Core pre-tax pre-provision return on average assets
2.43
%
1.94
%
2.20
%
2.38
%
2.15
%
Net income (loss)$
40,996
$
30,847
$
25,655
$
29,057
$
(22,482
)
Add: Acquisition related provision (after-tax)
-
-
-
-
20,500
Add: Acquisition related charges (after-tax)
-
1,730
2,932
1,658
9,452
Core net income
$
40,996
$
32,577
$
28,587
$
30,715
$
7,470
Diluted shares - Reported
37,357
37,350
37,334
37,324
31,666
Add: Dilutive shares for core net income
-
-
-
-
121
Diluted shares - Core
37,357
37,350
37,334
37,324
31,787
Core diluted EPS
$
1.10
$
0.87
$
0.77
$
0.82
$
0.24
Average total assets
$
7,338,886
$
7,089,060
$
6,935,783
$
7,005,783
$
5,357,598
Core return on average assets
2.27
%
1.83
%
1.64
%
1.76
%
0.56
%
Average total equity$
972,653
$
946,223
$
927,506
$
932,793
$
786,837
Core return on average equity
17.09
%
13.70
%
12.26
%
13.24
%
3.82
%
Average total tangible equity$
624,996
$
602,495
$
576,457
$
580,449
$
518,253
Core return on average tangible equity
26.60
%
21.51
%
19.73
%
21.28
%
5.80
%
Note: 2020 results include two months of operations from UCFC compared to three for comparable periods in 2021. (1) Represents prepayment penalties on FHLB early extinguishments funded by gains on securities sales that are excluded from revenues for efficiency ratio calculation.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210420006100/en/
Paul Nungester EVP and CFO 419.785.8700 PNungester@yourpremierbank.com
1 Year P.F.Changs China Bistro, Inc. (MM) Chart |
1 Month P.F.Changs China Bistro, Inc. (MM) Chart |
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