Premier Financial (US:PFC)2020-01-21 19:40Financial 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]