Premier Financial Reports Net Income of $111.3M for 2023

DEFIANCE, Ohio – Premier Financial Corp., the holding company for Premier Bank, on Tuesday reported net income of $111.3 million, or $3.11 per diluted common share, for 2023, compared with $102.2 million, or $2.85 per diluted common share, for 2022.

Full-year results include the impact of the disposition of the company’s insurance agency, First Insurance Group, for a net gain on sale after transaction costs of $32.6 million pre-tax or 67 cents per diluted share after tax. Excluding the impact of the transaction, 2023 earnings would be $2.44 per diluted share, the company said.

Net income for the fourth quarter of 2023 was $20.1 million, or 56 cents per diluted common share, compared with $25.3 million, or 71 cents per diluted common share, for the fourth quarter of 2022.

“In the fourth quarter, we saw a continuation of performance improvement on many topics outlined in our third-quarter release,” said Gary Small, president and CEO of Premier. “Positive elements include purposefully moderate loan growth, excellent deposit growth, strong wealth management revenue growth, deliberate cost containment and a decline in nonperforming assets. Total loans grew 4.3% in 2023, with full year commercial loan growth totaling 4.2%. We remain focused on servicing existing clients and are well positioned to expand our new business outreach efforts in the upcoming year.”

Full-year 2023 highlights:

• Completed sale of insurance agency at a significant gain that strengthened capital without diluting future earnings.

• Deposit growth of $236 million (up 3%), including $38 million for core customer deposits excluding brokered (up 1%).

• Loan growth of $279 million (up 4%), including $179 million for commercial loans (up 4%).

• Equity up $88 million, or $2.37 per share (both up 10%), with tangible equity up $117 million, or $3.22 per share (both up 21%), and tangible equity ratio up 1.25%.

• Launched new digital banking platform to improve clients’ banking experience in October.

Fourth quarter 2023 highlights:

• Deposit growth of $77 million (up 4% annualized), including $128 million for core customer deposits excluding brokered (up 8% annualized).

• Loan growth of $43 million (up 3% annualized), including $63 million for commercial loan (up 6% annualized).

• Expenses declined $0.2 million (down 2% annualized) from third quarter 2023.

• Nonperforming assets decreased $4 million (or 10%) from prior quarter and six basis points to 0.41% of total assets.

• Equity up $56 million, or $1.57 per share (both up 24% annualized), with tangible equity up $57 million, or $1.60 per share (both up 37% annualized), to $18.69 per share and tangible equity ratio up to 8.03%.

The board of directors declared a quarterly cash dividend of 31 cents per common share, payable Feb. 16 to shareholders of record at the close of business on Feb. 9.

The full report can be viewed HERE.

Published by The Business Journal, Youngstown, Ohio.