Premier Reports Q1 Income of $41M
YOUNGSTOWN, Ohio – Premier Financial Corp. reports first-quarter net income of $41 million, or $1.10 per diluted common share.
The earnings are compared to a net loss of $22.5 million in the first quarter of 2020, a figure that includes $11.5 million in charges related to the acquisition of United Community Financial Corp., which owned the former Home Savings Bank.
“We are very pleased to deliver an excellent start for 2021,” said CEO Gary M. Small in a statement. “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.”
In its quarterly earnings report, the Premier Financial Corp. board of director declared a quarterly dividend of 26 cents payable May 14 to shareholders of record on May 7.
Among the first quarter highlights Premier offered are 1,645 second-round Paycheck Protection Program loans totaling $171.7 million. Including PPP loans made in 2020, Premier has forgiven $171.2 million.
Net interest income was $56.5 million in the first quarter, up from $45.5 million a year ago. The increase is attributed to organic growth and three months of income, compared to the two months in 2020 after the banks merged.
Noninterest income rose to $26.3 million, from $14 million in the first quarter of 2020. Mortgage banking rose to $10.5 million, while service fees and other charges rose to $5.5 million.
Total assets as of March 31 were $7.53 billion, up from $7.21 billion at the end of last year and from $6.54 billion in the first quarter of 2020.
Loans totaled $5.87 billion at the end of the first quarter, up from $5.32 billion a year ago.
Deposits were $6.35 billion, up from $4.99 billion in the first quarter of 2020.
Key performance ratios for the quarters ended March 31 and March 31, 2020, include:
- Return on average assets: 2.27%, -1.69%.
- Return on average equity: 17.09%, -11.48%.
- Net interest margin: 3.43%, 3.78%.
- Efficiency ratio: 47.96%, 70.86%.
Copyright 2023 The Business Journal, Youngstown, Ohio.