Premier Financial (PFC)

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Premier Financial (PFC) - 2020 Q4 - Earnings Call Presentation
2021-02-01 06:57
9 premier 2 financial corp. Investor Update January 2021 Forward Looking Statements & Non-GAAP Measures Forward Looking Statements This document may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21B of the Securities Exchange Act of 1934, as amended. Those statements may include, but are not limited to, all statements regarding intent, beliefs, expectations, projections, forecasts and plans of Premier Financial Corp. and i ...
Premier Financial (PFC) - 2020 Q3 - Earnings Call Transcript
2020-10-21 20:12
Premier Financial Corp. (NASDAQ:PFC) Q3 2020 Earnings Conference Call October 21, 2020 11:00 AM ET Company Participants Tera Murphy - Vice President Don Hileman - Chief Executive Officer Paul Nungester - Chief Financial Officer Gary Small - President Matt Garrity - Chief Lending Officer Vince Liuzzi - Chief Banking Officer Conference Call Participants Scott Siefers - Piper Sandler Michael Perito - KBW Feddie Strickland - FIG Partners David Long - Raymond James Operator Good morning and welcome to the Premie ...
Premier Financial (PFC) - 2020 Q1 - Earnings Call Transcript
2020-05-02 00:47
Financial Data and Key Metrics Changes - First quarter 2020 net income on a GAAP basis was a loss of $22.5 million or $0.71 per diluted common share compared to a profit of $11.5 million or $0.57 per diluted common share in Q1 2019 [14] - Core net income for the first quarter was $7.5 million or $0.24 per diluted share [14] - The company announced a second quarter dividend of $0.22 per share, representing a 16% increase from the previous year [15] Business Line Data and Key Metrics Changes - Net loans acquired from the merger were $2.34 billion, with a positive rate mark of $8.8 million and credit marks of $34.9 million [18] - Organic loan growth was $36.6 million, representing a 5.3% annualized growth rate, primarily from commercial loans [20] - Deposits increased by $41.2 million, resulting in a 5.7% annualized growth rate [21] Market Data and Key Metrics Changes - The company reported a significant increase in mortgage banking income, with gains on the sale of mortgage loans rising to $4.9 million from $1.3 million in the previous year due to increased volumes [32] - The 10-year treasury yield declined significantly from 1.92% at the end of 2019 to 0.7% by the end of Q1 2020, impacting the valuation of mortgage servicing rights [34] Company Strategy and Development Direction - The company executed a strategic pandemic plan, focusing on remote work arrangements and promoting self-service tools to ensure physical distancing [12] - The merger with United Community Financial Corporation (UCFC) was completed, with expectations of achieving annual cost savings of $17 million [52] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the uncertainty of future financial performance due to the COVID-19 pandemic [9] - The forecast for national unemployment is projected to rise to 12.5% in Q2, significantly impacting the economic environment [24] Other Important Information - The company suspended share buyback activities during the uncertain times [16] - The allowance coverage to loans was 1.68%, with a core provision expense of $17.8 million attributed to the adoption of CECL [25][41] Q&A Session Summary Question: Can you run us through some of the macroeconomic assumptions used for reserve levels? - The company uses Moody's forecast, with national unemployment projected to jump to 12.5% for Q2 due to COVID-19 impacts [69][72] Question: What is the best way to think about ongoing provisioning? - Ongoing provisioning will depend on economic forecasts; if conditions stabilize, reserves should align with historical trends [76][87] Question: What is the sense about the deferrals and their potential increase? - The company anticipates that deferrals could increase, with many loans having six-month deferrals [82] Question: Can you provide an update on the expense run rate and expected synergies from the merger? - The company expects to realize most synergies post-core conversion in July, with expenses better than expected due to strong mortgage activity [102][107] Question: How does the company view the commercial pipeline and closings? - The company expects good growth in the commercial business for Q2, although visibility for Q3 and Q4 is limited [118] Question: What are the expectations for purchase accounting adjustments for the rest of the year? - The company expects to see a benefit from accretion in the margin, with a projected core margin contraction in Q2 [127][128] Question: Have any internal stress tests been conducted for the combined company? - Internal stress tests indicate that the company remains well-capitalized under moderate to severe stress scenarios [134]
Premier Financial (PFC) - 2020 Q1 - Earnings Call Presentation
2020-04-29 22:20
Investor Update April 2020 Paul D. Nungester EVP & CFO Gary M. Small President Donald P. Hileman CEO Allin PROGRESS THROUGH PARTNERSHIP Forward Looking Statements This document may contain certain forward‐looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21 B of the Securities Exchange Act of 1934, as amended. Those statements may include, but are not limited to, all statements regarding intent, beliefs, expectations, projections, forecasts and plans ...
Premier Financial (PFC) - 2019 Q4 - Earnings Call Transcript
2020-01-21 19:40
Financial Data and Key Metrics Changes - Fourth quarter 2019 net income was $12.5 million or $0.63 per diluted share, compared to $12.1 million and $0.59 per diluted share in Q4 2018, reflecting a 3.5% increase in net income and a 7% increase in EPS [9][20] - For the full year 2019, net income was $49.4 million or $2.26 per diluted share, up from $46.3 million or $2.26 per diluted share in 2018, marking a 9.7% increase [10][42] - Total assets at year-end were $3.5 billion, up 9.4% from 2018 [11] - Return on assets (ROA) for 2019 was 1.5%, slightly down from 1.52% in 2018 [12] Business Line Data and Key Metrics Changes - Total loans increased by 9.4% year-over-year and 15.5% on a linked-quarter annualized basis [11] - Total deposits rose by 9.5% year-over-year and 15.9% on a linked-quarter annualized basis [11] - Net interest income for Q4 2019 was $29.5 million, up 3.5% from $28.5 million in Q4 2018 [24] - Non-interest income was $11.8 million in Q4 2019, up from $8.4 million in Q4 2018 [28] Market Data and Key Metrics Changes - The Columbus market contributed significantly to loan growth, with outstanding loans reaching $385 million, up over $120 million for the year [71] - The Fort Wayne market also saw record levels of deposits and commercial loans in 2019 [50] Company Strategy and Development Direction - The company is focused on loan portfolio growth as a key strategic plan, particularly in metro markets [14] - Plans to expand into the Dublin's Bridge Park area in early 2020 with a new branch designed with future banking models [49] - The merger with United Community Financial Corp (UCFC) is expected to enhance product offerings and customer service [53][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving mid to upper-single-digit loan growth in 2020 despite competitive pressures [66] - The company anticipates continued strong performance in the mortgage business, leveraging synergies from the merger [85] - There is an expectation of deposit growth driven by enhanced products and services [88] Other Important Information - The efficiency ratio improved to 60.08% from 60.29% year-over-year, including merger-related costs [11] - The company announced a 16% increase in its Q1 2020 dividend to $0.22 per share [19] Q&A Session Summary Question: What is the loan growth outlook for 2020? - Management projects mid to upper-single-digit loan growth for 2020, with contributions from both metro and legacy markets [66] Question: What is the current loan outstanding in Columbus? - The Columbus market has $385 million in loans outstanding, up over $120 million for the year [71] Question: What is the expected combined margin post-merger? - The combined company margin is projected to be in the 3.5% to 3.6% range [72] Question: What are the expected impacts from CECL adoption? - The estimated increase in loan loss reserves due to CECL is expected to be between $2.5 million to $4.5 million [73][74] Question: How does the mortgage business outlook look for 2020? - The company expects a solid performance in the mortgage business, building on strong productivity from 2019 [86] Question: What is the expectation for deposits in 2020? - Management expects deposit growth to match loan growth, supported by enhanced products and services [88]
Premier Financial (PFC) - 2019 Q3 - Earnings Call Transcript
2019-10-22 20:01
Financial Data and Key Metrics Changes - Net income for Q3 2019 was $13.2 million or $0.66 per diluted common share, a 20% increase in EPS compared to $11.3 million or $0.55 per diluted common share in Q3 2018 [9][15] - Return on average assets was 1.58%, up from 1.47% in Q3 2018 [39] - Total deposits increased by 11.9% on an annualized linked quarter basis and 9.4% year-over-year [11] Business Line Data and Key Metrics Changes - Loan growth for Q3 2019 was $41 million, representing over 6% annualized growth, with year-to-date loan growth at $125 million or 6.6% annualized [16][17] - Noninterest income for Q3 2019 was $11.8 million, up from $10.5 million in the linked quarter and $9.9 million in Q3 2018, driven by improvements in mortgage banking and service fees [23][24] - Mortgage originations for Q3 2019 were $127 million, significantly up from $85.5 million in the previous quarter and $74 million in Q3 2018 [25] Market Data and Key Metrics Changes - The company experienced a decrease in loan yields of 8 basis points on a linked quarter basis and an increase of 19 basis points compared to Q3 2018 [10] - The net interest margin for the quarter was 3.88%, down 15 basis points from the previous quarter [19] Company Strategy and Development Direction - The company plans to open a new office in Dublin, Ohio, in early 2020 as part of its expansion strategy in the Columbus market area [44][45] - A new digital banking platform is set to enhance digital banking capabilities for personal and business clients, aiming to improve customer service [48] - The company is focused on executing its market strategy with attention to loan and deposit growth, expense control, and improved asset quality [43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued solid performance due to strong deposit growth and a steady loan pipeline [43] - There is an expectation of margin contraction in the fourth quarter due to downward pressure on asset yields and limited pricing opportunities [12][40] - Management remains optimistic about meeting 2019 expectations despite anticipated challenges [40] Other Important Information - The company announced a Q3 2019 dividend of $0.22 per share, representing a 29% increase over Q3 2018 [14] - The company is progressing well with the implementation of CECL, expecting no significant impact on equity ratios [75] Q&A Session Summary Question: Can you help us think about the expense run rate in the fourth quarter? - Management indicated that the FDIC item will reverse, and they expect to return to a normal run rate by Q1 2020, with implemented cost-saving strategies in place [59][60] Question: What is the outlook for deposit pricing in your markets? - Management noted that deposit rates have significantly decreased in line with Fed cuts, and they expect this to positively impact margins in Q4 [61][62] Question: Can you discuss the increase in early-stage delinquency this quarter? - Management expects most of the early-stage delinquencies to be resolved, attributing the increase to one large credit being monitored [63] Question: What drove the increase in deposit balances this quarter? - The increase was primarily rate-driven, with management being cautious about cutting rates too quickly to support loan growth [66] Question: Are you progressing with CECL implementation? - Management confirmed they are making good progress and do not expect a significant uptick in loan loss reserves at the end of the day [75]
Premier Financial (PFC) - 2019 Q2 - Earnings Call Transcript
2019-07-23 19:06
Financial Data and Key Metrics Changes - Net income for Q2 2019 was $12.2 million, or $0.61 per diluted share, a 13% increase from $11.1 million, or $0.54 per diluted share, in Q2 2018 [9][16] - Return on average assets improved to 1.52% from 1.48% year-over-year [10][38] - Loan growth rebounded with an annualized growth rate of 12% in Q2 2019, and year-to-date growth was 6.6% [11][18] - Total deposits increased by 8% year-over-year, but decreased by 0.08% on a linked quarter basis [12][19] - Net interest income rose to $29 million, up from $26.5 million in Q2 2018, reflecting a 9.2% increase [22][26] Business Line Data and Key Metrics Changes - Mortgage banking revenues for Q2 2019 were $2.1 million, up from $1.8 million in Q2 2018, with mortgage originations at $85.5 million [27][29] - Non-interest income totaled $10.5 million, down from $10.8 million in the linked quarter but up from $10.2 million in Q2 2018 [26] - Non-interest expenses were $24.2 million, down from $24.9 million in the linked quarter but up from $22.7 million in Q2 2018 [30][31] Market Data and Key Metrics Changes - The competitive pricing environment for deposits remains, with some easing observed in various markets [52] - The Columbus, Ohio market showed significant contributions to loan growth, indicating strong performance in that region [42] Company Strategy and Development Direction - The company is focused on core balance sheet growth, particularly in loan and deposit growth, expense control, and improved asset quality [41][46] - A new digital banking platform will be implemented to enhance digital capabilities and customer service [44] - The company aims to maintain upper single-digit annual loan growth and expects a rebound in deposit growth in the second half of the year [11][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong performance due to improved asset quality and a robust loan pipeline [41][46] - There is an expectation of margin contraction in the second half of the year due to downward pressure on asset yield [13][39] - The company remains optimistic about maintaining profitability despite anticipated challenges [39][46] Other Important Information - The company announced a Q3 2019 dividend of $0.19 per share, a 27% increase from Q2 2018 [15] - The allowance for loan loss increased to $28.9 million, reflecting growth in loans and improved asset quality metrics [34][36] Q&A Session Summary Question: Can you provide insight on deposit pricing in your markets? - Management noted that while the market remains competitive, there has been some easing in deposit pricing [52] Question: How does the loan pipeline compare to last quarter? - The loan pipeline is significant, with $400 million in commercial and $120 million in residential pipelines, indicating strong team commitment [53] Question: Do you expect the $24.2 million in expenses to be a good run rate going forward? - Management hopes to improve on this figure, focusing on expense containment as margins compress [55] Question: What is the expected impact of a Fed rate cut on margins? - A 25-basis-point cut could lead to a decline of five to six basis points in margins [64][67] Question: How are deposit gathering efforts in newer markets? - There has been limited impact from newer markets, with a focus on legacy markets for deposit growth [68] Question: What is the expected provision expense going forward? - A more normalized provision expense is anticipated to be around $750,000, tracking with loan growth [71]
Premier Financial (PFC) - 2019 Q1 - Earnings Call Transcript
2019-04-23 17:53
Financial Data and Key Metrics Changes - Net income for Q1 2019 was $11.5 million or $0.57 per diluted share, compared to $11.7 million or $0.57 in Q1 2018, influenced by a $2 million recovery in the previous year [8][14] - Return on Assets (ROA) was 1.46% and return on tangible equity was 15.93% [8] - Non-performing loans decreased to $17.6 million from $19 million in the previous quarter and down 37% from $27.9 million a year ago [39] Business Line Data and Key Metrics Changes - Year-over-year loan growth was 8.1%, with a linked quarter growth of 1.4% annualized [10] - Net interest income for Q1 2019 was $28.3 million, up 10% from $25.7 million in Q1 2018 [19] - Mortgage banking revenues were $1.8 million, up from $1.4 million in the linked quarter and $1.7 million in Q1 2018 [28] Market Data and Key Metrics Changes - Total deposits increased by 8% year-over-year and 10% on a linked quarter annualized basis [13] - The lending environment remains competitive, with pressures on rates and structures [12] Company Strategy and Development Direction - The company aims for core balance sheet growth focusing on loan and deposit growth, overall revenue growth, expense control, and improved asset quality [45] - Emphasis on technology and digital strategy to enhance customer service and meet changing expectations [49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving annual loan growth goals in the upper single digits despite a slower start [11][46] - The outlook for the margin remains positive, although there are pressures from increasing deposit costs [60] Other Important Information - The company announced a dividend increase to $0.19 per share, representing a 26% increase in annual dividend yield [14] - The total risk-based capital ratio was approximately 12.6% at the end of Q1 2019, supporting growth strategies [43] Q&A Session Summary Question: Outlook for net interest margin (NIM) - Management expects NIM to maintain similar levels but acknowledges potential downward pressure from increasing deposit costs [60] Question: Share repurchase priorities - The company remains focused on dividends and share repurchases as part of its long-term capital strategy [62] Question: Expectation for allowance trends - The allowance is expected to remain comparable, potentially improving with continued asset quality improvements [63][65] Question: Outlook for mortgage banking - The pipeline is strong, with expectations for a seasonal pickup in mortgage banking activity [74] Question: Provision expectations - Provision levels are expected to normalize with loan growth, around $1 million depending on actual volumes [79]
Premier Financial (PFC) - 2018 Q4 - Earnings Call Transcript
2019-01-22 21:46
Call Start: 11:00 January 1, 0000 11:37 AM ET First Defiance Financial Corp. (FDEF) Q4 2018 Earnings Conference Call January 22, 2019 11:00 ET Company Participants Tera Murphy - VP & Marketing Director Don Hileman - President & CEO Kevin Thompson - EVP & CFO Brent Beard - Controller Paul Nungester - Director of Finance & Accounting Conference Call Participants Nick Cucharale - Sandler O'Neill & Partners Damon DelMonte - KBW Christopher Marinac - FIG Partners Operator Good morning. And welcome to the First D ...