Premier Financial (US:PFC)2019-04-23 17:53Financial 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]