Premier Financial Corp. Reports Strong Loan Growth in 2nd Quarter

DEFIANCE, Ohio – Premier Financial Corp. announced Tuesday that net income for the second quarter of 2022 was $22.4 million, or $0.63 per diluted common share, compared to $31.4 million, or $0.84 per diluted common share during the same period in 2021. 

The year-over-year comparison is primarily impacted by increased provision for credit losses due to loan growth, lower Paycheck Protection Program interest income and securities gain/loss fluctuations, Premier reported.

Premier is the holding company for Premier Bank and First Insurance Group, both based in Youngstown.

“Excellent work by the entire Premier team to essentially drive an entire year’s worth of loan and deposit growth into a single quarter,” said Gary Small, president and CEO of Premier. “Commercial, consumer and residential mortgage balances grew in a range of 8.6% to 13.5% for the quarter while deposit growth totaled 3.2%. Year-to-date loan growth adjusting for PPP totaled 12.4%, a reflection of the strength of the business opportunities across our markets and the solid financial position of the households we serve.”

Among the first quarter highlights are:

  • Loan growth of $494.1 million (up 35.7% annualized) including $314.8 million for commercial loans excluding PPP (up 34.5% annualized) and $139.2 million for residential loans including held for sale (up 37.8% annualized)
  • Deposit growth of $199.1 million (up 12.6% annualized) including $53.4 million of non-interest-bearing (up 12.3% annualized)
  • Net interest income (tax equivalent) of $59.3 million or $58.5 million excluding PPP and marks, up 2.1% and 8.8%, respectively, from 2022 first quarter
  • Net interest margin (tax equivalent) of 3.36% or 3.32% excluding PPP and acquisition marks accretion, down six but up 12 basis points, respectively, from 2022 first quarter
  • Asset quality improved with non-performing loans down 26.6% and classified loans down 19.0% from 2022 first quarter
  • Declared dividend of $0.30 per share, up 11.1% from prior year comparable period

“The rising rate environment is having a predictably favorable effect on net interest income,” Small said. “Margin improvement combined with outstanding loan growth make a powerful combination overcoming the unfavorable effects of a flat to inverted yield curve.” 

Premier reported total assets of $8.010 billion as of June 30, 2022 compared to $7.590 billion during the previous quarter and $7.593 billion on June 30, 2021.

“While our mortgage origination activity has performed well during the first half of the year, the combination of rising rates, interest rate volatility, and general market uncertainty continues to put pressure on gain on sale fee income and is expected to continue through the remainder of the year,” Small said. 

Published by The Business Journal, Youngstown, Ohio.