Premier Bank reports 2021 net profit of $126.1 million

DEFIANCE, Ohio – Premier Financial Corp.reported full 2021 net income of $126.1 million on Tuesday, compared to $63.1 million — or $99.3 million excluding merger-related expenses — for 2020, according to a statement from the society.

Premier Financial, headquartered in Defiance, is the holding company of Premier Bank, headquartered in Youngstown, and First Insurance Group with 10 offices in Ohio. The company reported earnings per share of $3.39 in 2021, down from $1.75 – or $2.76 excluding merger expenses – for the previous year.

Year-over-year comparisons are “significantly impacted” by the January 31, 2020 acquisition of United Community Financial Corp., the holding company of First Savings Bank and HSB Insurance, the statement said.

Excluding Paycheck Protection Program loans, Premier saw loan growth of $133 million in 2021, including $106 million for commercial loans, an increase of 3.1%.

“Strong loan growth continues to be the theme as we close out a successful 2021,” Premier President and CEO Gary Small said in the statement. “PPP-adjusted growth for the fourth quarter totaled 8.7% on an annualized basis. And similar to the third quarter, every lending category grew, with commercial lending leading the way at 10.3%. Premier’s core loan growth for the second half of 2021 totaled 7.0% on an annualized basis.

“Combined with strong margin management fundamentals and continued strength in the residential origination and fee income business, we enter 2022 with a lot of momentum,” Small continued.

In its results, Premier also reported on the performance of PPP loans created by the Coronavius ​​Aid, Relief and Economic Security Act of 2020 to help businesses keep employees on payroll during the COVID-19 pandemic. 19.

Premier Bank made 2,880 PPP loans totaling $443.3 million during the year ended December 31, 2020, with total gross fees for these loans totaling $14.8 million. To date, Premier Bank has recorded $14.7 million in loan interest income, including $27,000 and $8.4 million in the three and 12 months ended December 31, 2021, respectively. Additionally, a total of $435.8 million in loans have been extinguished to date, including $2.4 million and $379.3 million in the three and 12 months ended December 31, 2021, respectively.

Starting in January, Premier Bank participated in the second round of PPP loans and made 2,231 loans for a total of $193.6 million in the financial year ended December 31, 2021.

Gross charges for these loans totaled $7.8 million, and Premier Bank recognized $3.0 million and $6.2 million in interest income on the loans during the three and 12 months ended December 31, 2021, respectively. Additionally, a total of $82.6 million and $142.2 million of loans were extinguished in the three and 12 months ended December 31, 2021, respectively. Total PPP loans were $58.9 million as of December 31, 2021.

In other indicators:

Net interest income of $57.2 million in the fourth quarter of 2021 was up from $55 million in the fourth quarter of 2020, due to loan growth, PPP fees and a decrease of 18 basis points in the average cost of funds. Net interest income was $227.4 million in 2021 compared to $208.0 million in 2020.

Non-interest income in the fourth quarter of 2021 was $17.8 million, compared to $18.7 million in the fourth quarter of 2020. Total mortgage banking income decreased to 3, $1 million in the fourth quarter of 2021, compared to $5.4 million in the fourth quarter of 2020. -interest income for 2021 was $80 million, compared to $80.7 million in 2020.

Mortgage gains decreased to $2.8 million in the fourth quarter of 2021 from $6.1 million in the fourth quarter of 2020.

Total assets as of December 31, 2021 were $7.48 billion, compared to $7.47 billion as of September 30, 2021 and $7.21 billion as of December 31, 2020. Deposits as of December 31, 2021 were 6, $28 billion, down from $6.25 billion. as of September 30, 2021 and $6.05 billion as of December 31, 2020.

As of December 31, 2021, total deposits increased $234.2 million organically, or 3.9% from a year ago.

Premier’s Board of Directors has declared a quarterly cash dividend of $0.30 per common share payable February 18, 2022 to shareholders of record at the close of business February 11, 2022. The dividend represents an annual dividend of 4.01 % based on First Closing Price of Common Shares on Jan 24, 2022.

Published by The Business Journal, Youngstown, Ohio.

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