Premier Financial Reports 3Q Income of $25.7M

DEFIANCE, Ohio – Premier Financial Corp. reports third-quarter net income of $25.7 million, or $28.6 million when excluding expenses related to the merger that united Home Savings Bank and First Federal Bank of the Midwest. The income is equal to 69 cents per share, or 77 cents per share when excluding merger-related expenses.

The net income is up substantially from the third quarter of 2019, when what was then First Defiance Financial Corp. reported earnings of $13.2 million. The merger of First Defiance and UCFC was completed Jan. 31 and the name-change to Premier became official in mid-June.

“Efficiency and non-interest income growth are highlights of our continued strong financial performance for the third quarter,” said Donald P. Hileman, CEO of Premier, in a statement. “We are incredibly pleased with our ability to enhance capital via excess earnings and a very successful, low-cost sub-debt issuance.”

Among the highlights cited by Premier Financial Corp. in its quarterly earnings report are:

  • 2,880 Paycheck Protection Program loans totaling $443.3 million as of Sept. 30. Total gross fees totaled $14.8 million, while loan interest income from PPP loans totaled $2.7 million for the quarter.
  • Net interest income of $53.3 million, up from $28.9 million in the same quarter a year ago, attributable to organic growth and three months of income from UCFC compared to none in 2019.
  • Noninterest income was $25 million, up from $11.8 million in the third quarter of 2019.

Key efficiency ratios for the quarters ended Sept. 30 and Sept. 30, 2019 include:

  • Return on average assets: 1.49%, 1.58%.
  • Return on average equity: 11.12%, 12.71%.
  • Net interest margin: 3.47%, 3.88%.
  • Efficiency: 56.54%, 56.79%.

Noninterest expenses totaled $43.56 million, up from $23.26 million in the year-ago quarter. 

Total assets were valued at $6.97 billion, down slightly from $7.01 billion at the end of the second quarter but up from $3.35 billion in the third quarter of 2019.

Total loans were $5.77 billion, up from $5.68 billion in the second quarter and $2.76 billion in the year-ago quarter.

Commercial loans were $1.26 billion, up from $1.24 billion in the second quarter and $537.8 million in the third quarter of 2019. 

Commercial real estate loans were $2.32 billion, up from $2.26 billion and $1.43 billion in the previous quarter and year-ago quarter, respectively.

Copyright 2020 The Business Journal, Youngstown, Ohio.