Premier Reports Net Income of $48.4M for Q2
DEFIANCE, Ohio – Premier Financial Corp. on Tuesday announced second quarter 2023 results, including a net income of $48.4 million, which includes the $36.3 million sale of insurance agency First Insurance Group to Risk Strategies Corp.
Premier’s net income equals $1.35 per diluted common share, compared with $22.4 million, or 63 cents per diluted common share, for the second quarter of 2022. After transaction costs, the insurance sale netted $32.6 pre-tax, or 67 cents per diluted share after-tax. Without the impact of the sale, the second quarter earnings would have been 68 cents per diluted share.
“Premier’s second quarter performance reflected the expected increase in quarterly core earnings to [68 cents] per share,” said Gary Small, president and CEO of Premier. “The improvement was driven by multiple factors – strong loan growth resulting from selective new business loan origination, coupled with a strong funding pace of prior year construction commitments. C&I commitments totaled 49% of second quarter commercial loan origination activity. Total deposits grew $220 million, or 3.3%, for the quarter. Customer deposit balance movement stabilized, down just $38 million, or 0.6%.”
In June, Premier completed a series of balance sheet hedges to improve asset-sensitivity and provide protection against additional interest rate increases. Based on rates as of June 30, these swaps are expected to generate about $4.7 million in annualized pre-tax net interest income.
In addition to the sale of FIG, the bank saw gains in non-interest income in the second quarter of $17.1 million, up 36.8% from the first quarter of 2023 and 18.7% from the second quarter of 2022. Premier attributes those gains primarily to fluctuations in mortgage banking and gains and losses on securities.
Premier reduced non-interest expenses by 4.6% from the first quarter results. Net interest income was down 4.1% from the first quarter, as well.
Loan growth was $132.7 million, up 8.1% from a year ago, including $75.2 million for commercial loans excluding PPP loans.
The board of directors announced a quarterly cash dividend of 31 cents per common share payable Aug. 11 to those shareholders of record at the close of business Aug. 4. Premier has more than 35.7 million common shares outstanding.
The entire Premier report can be found HERE.
Published by The Business Journal, Youngstown, Ohio.