Market Newsdesk

Paramount Announces Second Quarter 2022 Results

–Raises Guidance for Full Year 2022–

NEW YORK–(BUSINESS WIRE)–
Paramount Group, Inc. (NYSE: PGRE) (“Paramount” or the “Company”) filed its Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 today and reported results for the second quarter ended June 30, 2022.

Second Quarter Highlights:

• Reported net loss attributable to common stockholders of $0.4 million, or $0.00 per diluted share, for the quarter ended June 30, 2022, compared to $15.9 million, or $0.07 per diluted share, for the quarter ended June 30, 2021.
• Reported Core Funds from Operations (“Core FFO”) attributable to common stockholders of $53.6 million, or $0.24 per diluted share, for the quarter ended June 30, 2022, compared to $47.6 million, or $0.22 per diluted share, for the quarter ended June 30, 2021.
• Raised its full year 2022 earnings guidance as follows:
  • Estimated earnings attributable to common stockholders will be between a net loss of $0.01 per diluted share and net income of $0.03 per diluted share, compared to its prior estimated range of net loss attributable to common stockholders of $0.05 and $0.01 per diluted share, an increase in net income of $0.04 per diluted share at the midpoint of the Company’s prior estimate.
  • Estimated Core FFO attributable to common stockholders will be between $0.95 and $0.99 per diluted share, compared to its prior estimated range of $0.93 to $0.97 per diluted share, an increase of $0.02 per diluted share at the midpoint of the Company’s prior guidance.
• Reported a 5.6% increase in Same Store Cash Net Operating Income (“NOI”) and a 9.0% increase in Same Store NOI in the quarter ended June 30, 2022, compared to the same period in the prior year.
• Leased 250,231 square feet, of which the Company’s share was 188,175 square feet that was leased at a weighted average initial rent of $78.28 per square foot. Of the 188,175 square feet that was leased, 96,052 square feet represented the Company’s share of second generation space, for which rental rates decreased by 5.3% on a cash basis and increased by 0.5% on a GAAP basis.
• Declared a second quarter cash dividend of $0.0775 per common share on June 15, 2022, which was paid on July 15, 2022.
• Subsequent to quarter end, repurchased 268,231 common shares at a weighted average price of $6.96 per share, or $1.9 million in the aggregate.

Financial Results

Quarter Ended June 30, 2022

Net loss attributable to common stockholders was $0.4 million, or $0.00 per diluted share, for the quarter ended June 30, 2022, compared to $15.9 million, or $0.07 per diluted share, for the quarter ended June 30, 2021. Net loss attributable to common stockholders for the quarter ended June 30, 2021 includes a $10.7 million contribution to an unconsolidated joint venture, that was expensed in accordance with GAAP.

Funds from Operations (“FFO”) attributable to common stockholders was $53.3 million, or $0.24 per diluted share, for the quarter ended June 30, 2022, compared to $37.9 million, or $0.17 per diluted share, for the quarter ended June 30, 2021. FFO attributable to common stockholders for the quarter ended June 30, 2021 includes a $10.7 million contribution to an unconsolidated joint venture, that was expensed in accordance with GAAP. FFO attributable to common stockholders for the quarters ended June 30, 2022 and 2021 also includes the impact of other non-core items, which are listed in the table on page 9. The aggregate of the non-core items, net of amounts attributable to noncontrolling interests, decreased FFO attributable to common stockholders for the quarter ended June 30, 2022 and 2021 by $0.3 million and $9.7 million, respectively, or $0.00 and $0.05 per diluted share, respectively.

Core FFO attributable to common stockholders, which excludes the impact of the non-core items listed on page 9, was $53.6 million, or $0.24 per diluted share, for the quarter ended June 30, 2022, compared to $47.6 million, or $0.22 per diluted share, for the quarter ended June 30, 2021.

Six Months Ended June 30, 2022

Net income attributable to common stockholders was $3.0 million, or $0.01 per diluted share, for the six months ended June 30, 2022, compared to net loss attributable to common stockholders of $19.5 million, or $0.09 per diluted share, for the six months ended June 30, 2021. Net loss attributable to common stockholders for the six months ended June 30, 2021 includes a $10.7 million contribution to an unconsolidated joint venture, that was expensed in accordance with GAAP.

FFO attributable to common stockholders was $108.2 million, or $0.49 per diluted share, for the six months ended June 30, 2022, compared to $88.8 million, or $0.40 per diluted share, for the six months ended June 30, 2021. FFO attributable to common stockholders for the six months ended June 30, 2021 includes a $10.7 million contribution to an unconsolidated joint venture, that was expensed in accordance with GAAP. FFO attributable to common stockholders for the six months ended June 30, 2022 and 2021 also includes the impact of other non-core items, which are listed in the table on page 9. The aggregate of the non-core items, net of amounts attributable to noncontrolling interests, did not impact FFO attributable to common stockholders for the six months ended June 30, 2022 and decreased FFO attributable to common stockholders for the six months ended June 30, 2021 by $9.4 million, or $0.05 per diluted share.

Core FFO attributable to common stockholders, which excludes the impact of the non-core items listed on page 9, was $108.2 million, or $0.49 per diluted share, for the six months ended June 30, 2022, compared to $98.2 million, or $0.45 per diluted share, for the six months ended June 30, 2021.

Portfolio Operations

Quarter Ended June 30, 2022

Same Store Cash NOI increased by $5.1 million, or 5.6%, to $96.8 million for the quarter ended June 30, 2022 from $91.7 million for the quarter ended June 30, 2021. Same Store NOI increased by $8.5 million, or 9.0%, to $102.8 million for the quarter ended June 30, 2022 from $94.3 million for the quarter ended June 30, 2021.

During the quarter ended June 30, 2022, the Company leased 250,231 square feet, of which the Company’s share was 188,175 square feet that was leased at a weighted average initial rent of $78.28 per square foot. This leasing activity, partially offset by lease expirations in the quarter, increased leased occupancy by 80 basis points to 91.4% at June 30, 2022 from 90.6% at March 31, 2022. Same store leased occupancy (properties owned by the Company in a similar manner during both reporting periods), increased by 90 basis points to 91.4% at June 30, 2022 from 90.5% at March 31, 2022. Of the 188,175 square feet leased, 96,052 square feet represented the Company’s share of second generation space (space that had been vacant for less than twelve months) for which rental rates decreased by 5.3% on a cash basis and increased 0.5% on a GAAP basis. The weighted average lease term for leases signed during the second quarter was 9.0 years and weighted average tenant improvements and leasing commissions on these leases were $10.43 per square foot per annum, or 13.3% of initial rent.

Six Months Ended June 30, 2022

Same Store Cash NOI increased by $8.7 million, or 4.7%, to $192.8 million for the six months ended June 30, 2022 from $184.1 million for the six months ended June 30, 2021. Same Store NOI increased by $5.9 million, or 3.0%, to $199.0 million for the six months ended June 30, 2022 from $193.1 million for the six months ended June 30, 2021.

During the six months ended June 30, 2022, the Company leased 453,051 square feet, of which the Company’s share was 340,377 square feet that was leased at a weighted average initial rent of $73.54 per square foot. This leasing activity, partially offset by lease expirations in the six months, increased leased occupancy by 70 basis points to 91.4% at June 30, 2022 from 90.7% at December 31, 2021. Same store leased occupancy (properties owned by the Company in a similar manner during both reporting periods), increased by 80 basis points to 91.4% at June 30, 2022 from 90.6% at December 31, 2021. Of the 340,377 square feet leased, 237,321 square feet represented the Company’s share of second generation space (space that had been vacant for less than twelve months) for which rental rates decreased by 2.5% on a cash basis and remained in-line with prior rental rates on a GAAP basis. The weighted average lease term for leases signed during the six months was 8.5 years and weighted average tenant improvements and leasing commissions on these leases were $9.59 per square foot per annum, or 13.0% of initial rent.

Guidance

The Company is raising its Estimated Core FFO Guidance for the full year of 2022, which is reconciled below to estimated net (loss) income attributable to common stockholders per diluted share in accordance with GAAP. The Company estimates that earnings attributable to common stockholders will be between a net loss of $0.01 per diluted share and net income of $0.03 per diluted share, compared to its prior estimated range of net loss attributable to common stockholders of $0.05 and $0.01 per diluted share, an increase in net income of $0.04 per diluted share at the midpoint of the Company’s prior estimate, resulting from (i) $0.01 per diluted share from better than expected portfolio operations, (ii) $0.01 per diluted share from higher straight line rental income, (iii) $0.01 per diluted share from lower interest expense and (iv) $0.02 per diluted share from lower depreciation expense, partially offset by (v) $0.01 per diluted share from higher general and administrative expenses. The estimated net (loss) income attributable to common stockholders per diluted share is not a projection and is being provided solely to satisfy the disclosure requirements of the U.S. Securities and Exchange Commission.

Based on the Company’s performance for the six months ended June 30, 2022, and its outlook for the remainder of 2022, the Company is raising its Estimated 2022 Core FFO to be between $0.95 and $0.99 per diluted share, compared to its prior estimate of $0.93 to $0.97 per diluted share. This represents an increase of $0.02 per diluted share at the midpoint of the Company’s guidance, resulting primarily from (i) $0.01 per diluted share from better than expected portfolio operations, (ii) $0.01 per diluted share from higher straight line rental income, and (iii) $0.01 per diluted share from lower interest expense, partially offset by, (iv) $0.01 per diluted share from higher general and administrative expenses.

							Full Year 2022
(Amounts per diluted share)							Low				High
Estimated net (loss) income attributable to common stockholders							$	(0.01	)		$	0.03
Pro rata share of real estate depreciation and amortization, including the Company’s share of unconsolidated joint ventures								0.96				0.96
Estimated Core FFO							$	0.95			$	0.99

Except as described above, these estimates reflect management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels and the earnings impact of the events referenced in this release and otherwise to be referenced during the conference call referred to on page 6. These estimates do not include the impact on operating results from possible future property acquisitions or dispositions, or realized and unrealized gains and losses on real estate fund investments. The estimates set forth above may be subject to fluctuations as a result of several factors, including the negative impact of the COVID-19 global pandemic. There can be no assurance that the Company’s actual results will not differ materially from the estimates set forth above.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. You can identify these statements by our use of the words “assumes,” “believes,” “estimates,” “expects,” “guidance,” “intends,” “plans,” “projects” and similar expressions that do not relate to historical matters. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond the Company’s control and could materially affect actual results, performance or achievements. These factors include, without limitation, the negative impact of the COVID-19 global pandemic on the U.S., regional and global economies and our tenants’ financial condition and results of operations; the ability to enter into new leases or renew leases on favorable terms; dependence on tenants’ financial condition; trends in the office real estate industry including telecommuting, flexible work schedules, open workplaces and teleconferencing; the uncertainties of real estate development, acquisition and disposition activity; the ability to effectively integrate acquisitions; fluctuations in interest rates and the costs and availability of financing; the ability of our joint venture partners to satisfy their obligations; the effects of local, national and international economic and market conditions and the impact of rising inflation and interest rates on such market conditions; the effects of acquisitions, dispositions and possible impairment charges on our operating results; regulatory changes, including changes to tax laws and regulations; and other risks and uncertainties detailed from time to time in the Company’s filings with the U.S. Securities and Exchange Commission. The Company does not undertake a duty to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Measures

FFO is a supplemental measure of our performance. We present FFO in accordance with the definition adopted by the National Association of Real Estate Investment Trusts (“Nareit”). Nareit defines FFO as net income or loss, calculated in accordance with GAAP, adjusted to exclude depreciation and amortization from real estate assets, impairment losses on certain real estate assets and gains or losses from the sale of certain real estate assets or from change in control of certain real estate assets, including our share of such adjustments of unconsolidated joint ventures. FFO is commonly used in the real estate industry to assist investors and analysts in comparing results of real estate companies because it excludes the effect of real estate depreciation and amortization and net gains on sales, which are based on historical costs and implicitly assume that the value of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions. In addition, we present Core FFO as an alternative measure of our operating performance, which adjusts FFO for certain other items that we believe enhance the comparability of our FFO across periods. Core FFO, when applicable, excludes the impact of certain items, including, transaction related costs, realized and unrealized gains or losses on real estate fund investments, unrealized gains or losses on interest rate swaps, severance costs and gains or losses on early extinguishment of debt, in order to reflect the Core FFO of our real estate portfolio and operations. In future periods, we may also exclude other items from Core FFO that we believe may help investors compare our results.

FFO and Core FFO are presented as supplemental financial measures and do not fully represent our operating performance. Other REITs may use different methodologies for calculating FFO and Core FFO or use other definitions of FFO and Core FFO and, accordingly, our presentation of these measures may not be comparable to other real estate companies. Neither FFO nor Core FFO is intended to be a measure of cash flow or liquidity. Please refer to our financial statements, prepared in accordance with GAAP, for purposes of evaluating our financial condition, results of operations and cash flows.

NOI is used to measure the operating performance of our properties. NOI consists of rental revenue (which includes property rentals, tenant reimbursements and lease termination income) and certain other property-related revenue less operating expenses (which includes property-related expenses such as cleaning, security, repairs and maintenance, utilities, property administration and real estate taxes). We also present Cash NOI which deducts from NOI, straight-line rent adjustments and the amortization of above and below-market leases, including our share of such adjustments of unconsolidated joint ventures. In addition, we present PGRE’s share of NOI and Cash NOI which represents our share of NOI and Cash NOI of consolidated and unconsolidated joint ventures, based on our percentage ownership in the underlying assets. We use NOI and Cash NOI internally as performance measures and believe they provide useful information to investors regarding our financial condition and results of operations because they reflect only those income and expense items that are incurred at property level.

Same Store NOI is used to measure the operating performance of properties in our New York and San Francisco portfolios that were owned by the Company in a similar manner during both the current period and prior reporting periods and represents Same Store NOI from consolidated and unconsolidated joint ventures based on our percentage ownership in the underlying assets. Same Store NOI also excludes lease termination income, impairment of receivables arising from operating leases and certain other items that may vary from period to period. We also present Same Store Cash NOI, which excludes the effect of non-cash items such as the straight-line rent adjustments and the amortization of above and below-market leases.

A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure can be found in this press release and in our Supplemental Information for the quarter ended June 30, 2022, which is available on our website.

Investor Conference Call and Webcast

The Company will host a conference call and audio webcast on Wednesday, July 27, 2022 at 12:00 p.m. Eastern Time (ET), during which management will discuss the second quarter results and provide commentary on business performance. A question and answer session with analysts and investors will follow the prepared remarks.

The conference call can be accessed by dialing 877-407-0789 (domestic) or 201-689-8562 (international). An audio replay of the conference call will be available from 3:00 p.m. ET on July 27, 2022 through August 3, 2022 and can be accessed by dialing 844-512-2921 (domestic) or 412-317-6671 (international) and entering the passcode 13729527.

A live audio webcast of the conference call will be available through the “Investors” section of the Company’s website, www.pgre.com. A replay of the webcast will be archived on the Company’s website.

About Paramount Group, Inc.

Headquartered in New York City, Paramount Group, Inc. is a fully-integrated real estate investment trust that owns, operates, manages, acquires and redevelops high-quality, Class A office properties located in select central business district submarkets of New York City and San Francisco. Paramount is focused on maximizing the value of its portfolio by leveraging the sought-after locations of its assets and its proven property management capabilities to attract and retain high-quality tenants.

Paramount Group, Inc. Consolidated Balance Sheets (Unaudited and in thousands)
Assets:						June 30, 2022				December 31, 2021
Real estate, at cost:
Land						$	1,966,237			$	1,966,237
Buildings and improvements							6,103,782				6,061,824
							8,070,019				8,028,061
Accumulated depreciation and amortization							(1,199,035	)			(1,112,977	)
Real estate, net							6,870,984				6,915,084
Cash and cash equivalents							506,933				524,900
Restricted cash							24,934				4,766
Investments in unconsolidated joint ventures							429,418				408,096
Investments in unconsolidated real estate funds							14,156				11,421
Accounts and other receivables							17,788				15,582
Deferred rent receivable							336,736				332,735
Deferred charges, net							119,431				122,177
Intangible assets, net							104,929				119,413
Other assets							56,920				40,388
Total assets						$	8,482,229			$	8,494,562
Liabilities:
Notes and mortgages payable, net						$	3,837,968			$	3,835,620
Revolving credit facility							–				–
Accounts payable and accrued expenses							108,464				116,192
Dividends and distributions payable							18,787				16,895
Intangible liabilities, net							41,119				45,328
Other liabilities							24,537				25,495
Total liabilities							4,030,875				4,039,530
Equity:
Paramount Group, Inc. equity							3,697,192				3,588,163
Noncontrolling interests in:
Consolidated joint ventures							412,189				428,833
Consolidated real estate fund							80,557				81,925
Operating Partnership							261,416				356,111
Total equity							4,451,354				4,455,032
Total liabilities and equity						$	8,482,229			$	8,494,562

Paramount Group, Inc. Consolidated Statements of Income (Unaudited and in thousands, except share and per share amounts)
							For the Three Months Ended								For the Six Months Ended
							June 30,								June 30,
							2022				2021				2022				2021
Revenues:
	Rental revenue						$	177,243			$	174,628			$	347,165			$	347,774
	Fee and other income							8,274				7,641				22,037				15,661
		Total revenues						185,517				182,269				369,202				363,435
Expenses:
	Operating							67,814				64,072				134,475				130,690
	Depreciation and amortization							57,398				59,925				113,022				118,230
	General and administrative							16,706				18,418				32,351				32,782
	Transaction related costs							159				135				276				416
		Total expenses						142,077				142,550				280,124				282,118
Other income (expense):
	Loss from unconsolidated joint ventures							(4,416	)			(15,717	)			(9,529	)			(21,033	)
	Income from unconsolidated real estate funds							155				148				325				328
	Interest and other income, net							796				1,070				1,027				2,372
	Interest and debt expense							(35,578	)			(34,914	)			(69,855	)			(69,653	)
Net income (loss) before income taxes								4,397				(9,694	)			11,046				(6,669	)
	Income tax expense							(359	)			(434	)			(886	)			(1,575	)
Net income (loss)								4,038				(10,128	)			10,160				(8,244	)
Less net (income) loss attributable to noncontrolling interests in:
	Consolidated joint ventures							(4,779	)			(7,428	)			(8,204	)			(13,156	)
	Consolidated real estate fund							352				29				1,368				(56	)
	Operating Partnership							29				1,584				(313	)			1,935
Net (loss) income attributable to common stockholders							$	(360	)		$	(15,943	)		$	3,011			$	(19,521	)
Per Share:
Basic							$	(0.00	)		$	(0.07	)		$	0.01			$	(0.09	)
Diluted							$	(0.00	)		$	(0.07	)		$	0.01			$	(0.09	)
Weighted average common shares outstanding:
Basic								222,971,886				218,696,284				220,888,664				218,681,228
Diluted								222,971,886				218,696,284				220,930,019				218,681,228

Paramount Group, Inc. Reconciliation of Net Income (Loss) to FFO and Core FFO (Unaudited and in thousands, except share and per share amounts)
							For the Three Months Ended								For the Six Months Ended
							June 30,								June 30,
							2022				2021				2022				2021
Reconciliation of Net Income (Loss) to FFO and Core FFO:
	Net income (loss)						$	4,038			$	(10,128	)		$	10,160			$	(8,244	)
	Real estate depreciation and amortization (including our share
		of unconsolidated joint ventures)						67,235				70,264				133,060				139,405
	FFO							71,273				60,136				143,220				131,161
	Less FFO attributable to noncontrolling interests in:
		Consolidated joint ventures						(13,945	)			(18,453	)			(26,460	)			(33,527	)
		Consolidated real estate fund						346				29				1,355				(56	)
	FFO attributable to Paramount Group Operating Partnership							57,674				41,712				118,115				97,578
	Less FFO attributable to noncontrolling interests in
		Operating Partnership						(4,352	)			(3,769	)			(9,920	)			(8,761	)
	FFO attributable to common stockholders						$	53,322			$	37,943			$	108,195			$	88,817
	Per diluted share						$	0.24			$	0.17			$	0.49			$	0.40
	FFO						$	71,273			$	60,136			$	143,220			$	131,161
	Non-core items:
		Adjustment to equity in earnings for contributions to
			(distributions from) an unconsolidated joint venture					168				10,492				(415	)			9,915
		Consolidated real estate fund’s share of after-tax net gain
			on sale of residential condominium units (One Steuart Lane)					(1,022	)			–				(1,684	)			–
		Other, net						1,664				133				3,752				379
	Core FFO							72,083				70,761				144,873				141,455
	Less Core FFO attributable to noncontrolling interests in:
		Consolidated joint ventures						(13,945	)			(18,453	)			(26,460	)			(33,527	)
		Consolidated real estate fund						(128	)			29				(287	)			(56	)
	Core FFO attributable to Paramount Group Operating Partnership							58,010				52,337				118,126				107,872
	Less Core FFO attributable to noncontrolling interests in
		Operating Partnership						(4,377	)			(4,729	)			(9,915	)			(9,692	)
	Core FFO attributable to common stockholders						$	53,633			$	47,608			$	108,211			$	98,180
	Per diluted share						$	0.24			$	0.22			$	0.49			$	0.45
Reconciliation of weighted average shares outstanding:
	Weighted average shares outstanding							222,971,886				218,696,284				220,888,664				218,681,228
	Effect of dilutive securities							26,594				51,117				41,355				50,563
	Denominator for FFO and Core FFO per diluted share							222,998,480				218,747,401				220,930,019				218,731,791

Paramount Group, Inc. Reconciliation of Net Income (Loss) to Same Store NOI and Same Store Cash NOI (Unaudited and in thousands)
						For the Three Months Ended								For the Six Months Ended
						June 30,								June 30,
						2022				2021				2022				2021
Reconciliation of Net Income (Loss) to Same Store NOI and Same Store Cash NOI:
	Net income (loss)					$	4,038			$	(10,128	)		$	10,160			$	(8,244	)
	Add (subtract) adjustments to arrive at NOI and Cash NOI:
		Depreciation and amortization					57,398				59,925				113,022				118,230
		General and administrative					16,706				18,418				32,351				32,782
		Interest and debt expense					35,578				34,914				69,855				69,653
		Income tax expense					359				434				886				1,575
		NOI from unconsolidated joint ventures (excluding One Steuart Lane)					11,585				10,557				22,819				20,883
		Loss from unconsolidated joint ventures					4,416				15,717				9,529				21,033
		Fee income					(5,974	)			(6,201	)			(17,962	)			(12,871	)
		Interest and other income, net					(796	)			(1,070	)			(1,027	)			(2,372	)
		Other, net					4				(13	)			(49	)			88
	NOI						123,314				122,553				239,584				240,757
	Less NOI attributable to noncontrolling interests in:
		Consolidated joint ventures					(21,796	)			(26,233	)			(42,118	)			(48,958	)
		Consolidated real estate fund					–				121				–				206
	PGRE’s share of NOI						101,518				96,441				197,466				192,005
		Acquisitions / Redevelopment					(164	)			(231	)			(211	)			(231	)
		Lease termination income					(157	)			(1,614	)			(1,875	)			(1,712	)
		Other, net					1,578				(294	)			3,577				3,044
	PGRE’s share of Same Store NOI					$	102,775			$	94,302			$	198,957			$	193,106
	NOI					$	123,314			$	122,553			$	239,584			$	240,757
	Less:
		Straight-line rent adjustments (including our share of unconsolidated joint ventures)					(5,977	)			(2,958	)			(4,319	)			(11,060	)
		Amortization of above and below-market leases, net (including our share of unconsolidated joint ventures)					(1,128	)			(1,662	)			(2,325	)			(3,465	)
	Cash NOI						116,209				117,933				232,940				226,232
	Less Cash NOI attributable to noncontrolling interests in:
		Consolidated joint ventures					(20,693	)			(24,198	)			(41,206	)			(43,139	)
		Consolidated real estate fund					–				121				–				206
	PGRE’s share of Cash NOI						95,516				93,856				191,734				183,299
		Acquisitions / Redevelopment					(176	)			(287	)			(242	)			(287	)
		Lease termination income					(157	)			(1,614	)			(1,875	)			(1,712	)
		Other, net					1,608				(271	)			3,211				2,835
	PGRE’s share of Same Store Cash NOI					$	96,791			$	91,684			$	192,828			$	184,135

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220726006067/en/

Wilbur Paes

Chief Operating Officer,

Chief Financial Officer and Treasurer

212-237-3122

[email protected]

Tom Hennessy

Vice President, Investor Relations and

Business Development

212-237-3138

[email protected]

Media:

212-492-2285

[email protected]

KEYWORDS: New York United States North America

INDUSTRY KEYWORDS: Commercial Building & Real Estate Construction & Property REIT

MEDIA:

Posted on July 26, 2022 4:31 pm

Masimo to Report Second Quarter 2022 Financial Results after Market Close on Tuesday, August 9

Masimo to Report Second Quarter 2022 Financial Results after Market Close on Tuesday, August 9

Conference call and webcast to begin at 1:30 p.m. PT (4:30 p.m. ET)

IRVINE, Calif.–(BUSINESS WIRE)–
Masimo (NASDAQ: MASI) will release second quarter 2022 financial results for the period ended July 2, 2022, after the market closes on Tuesday, August 9, 2022. The conference call to review the results will begin at 1:30 p.m. PT (4:30 p.m. ET) and will be hosted by Joe Kiani, Chairman and Chief Executive Officer, and Micah Young, Executive Vice President and Chief Financial Officer.

To register for the conference call and receive the dial-in number, please use the link below. Upon registering, each participant will be provided with details including the dial-in number and a registrant ID number. Reminders about the call will also be sent to registered participants via email.

Conference Call Registration Link (Please register to obtain the dial-in number): https://conferencingportals.com/event/nUSpRIEm

A replay of the webcast and conference call will be available shortly after the conclusion of the call and will be archived on the Company’s website.

About Masimo

Masimo (Nasdaq: MASI) is a global medical technology company that develops and produces a wide array of industry-leading monitoring technologies, including innovative measurements, sensors, patient monitors, and automation and connectivity solutions. Our mission is to improve patient outcomes and reduce the cost of care. Masimo SET^® Measure-through Motion and Low Perfusion^™ pulse oximetry, introduced in 1995, has been shown in over 100 independent and objective studies to outperform other pulse oximetry technologies. Masimo SET^® has also been shown to help clinicians reduce severe retinopathy of prematurity in neonates, improve CCHD screening in newborns, and, when used for continuous monitoring with Masimo Patient SafetyNet^™ in post-surgical wards, reduce rapid response team activations, ICU transfers, and costs. Masimo SET^® is estimated to be used on more than 100 million patients in leading hospitals and other healthcare settings around the world, and is the primary pulse oximetry at 9 of the top 10 hospitals listed in the 2018-19 U.S. News and World Report Best Hospitals Honor Roll. Masimo continues to refine SET^® and in 2018, announced that SpO2 accuracy on RD SET^™ sensors during conditions of motion has been significantly improved, providing clinicians with even greater confidence that the SpO2 values they rely on accurately reflect a patient’s physiological status. In 2005, Masimo introduced rainbow^® Pulse CO-Oximetry technology, allowing noninvasive and continuous monitoring of blood constituents that previously could only be measured invasively, including total hemoglobin (SpHb^®), oxygen content (SpOC^™), carboxyhemoglobin (SpCO^®), methemoglobin (SpMet^®), Pleth Variability Index (PVi^®), RPVi^™ (rainbow^® PVi), and Oxygen Reserve Index (ORi^™). In 2013, Masimo introduced the Root^® Patient Monitoring and Connectivity Platform, built from the ground up to be as flexible and expandable as possible to facilitate the addition of other Masimo and third-party monitoring technologies; key Masimo additions include Next Generation SedLine^® Brain Function Monitoring, O3^® Regional Oximetry, and ISA^™ Capnography with NomoLine^® sampling lines. Masimo’s family of continuous and spot-check monitoring Pulse CO-Oximeters^® includes devices designed for use in a variety of clinical and non-clinical scenarios, including tetherless, wearable technology, such as Radius-7^® and Radius PPG^™, portable devices like Rad-67^™, fingertip pulse oximeters like MightySat^® Rx, and devices available for use both in the hospital and at home, such as Rad-97^™. Masimo hospital automation and connectivity solutions are centered around the Iris^® platform, and include Iris Gateway^™, Patient SafetyNet, Replica^™, Halo ION^™, UniView^™, and Doctella^™. Additional information about Masimo and its products may be found at www.masimo.com. Published clinical studies on Masimo products can be found at www.masimo.com/evidence/featured-studies/feature/.

ORi and RPVi have not received FDA 510(k) clearance and are not available for sale in the United States. The use of the trademark Patient SafetyNet is under license from University HealthSystem Consortium.

Masimo, SET, Signal Extraction Technology, Improving Patient Outcome and Reducing Cost of Care by Taking Noninvasive Monitoring to New Sites and Applications, rainbow, SpHb, SpOC, SpCO, SpMet, PVI are trademarks or registered trademarks of Masimo.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220726006079/en/

Investor Contact: Eli Kammerman

(949) 297-7077

[email protected]

Media Contact: Evan Lamb

(949) 297-3376

[email protected]

KEYWORDS: United States North America California

INDUSTRY KEYWORDS: Technology Medical Devices Medical Supplies Hospitals Other Technology Software Other Health Hardware Health

MEDIA:

Posted on July 26, 2022 4:29 pm

Bragg Gaming Group Names Mark Clayton to Board of Directors

Bragg Gaming Group Names Mark Clayton to Board of Directors

Clayton Brings 32 Years of Gaming Industry Legal and Compliance Experience, Including more than Seven Years as Chair of Greenberg Traurig’s Global Gaming Practice

TORONTO–(BUSINESS WIRE)–
Bragg Gaming Group (NASDAQ: BRAG, TSX: BRAG) (“Bragg” or the “Company”), a global B2B gaming technology and content provider, announced today that the Company’s Board of Directors has appointed Mark Clayton to the Board. Bragg also announced that Cristina Romero has resigned from the Board effective immediately, having notified the Board that she will be focusing on other business commitments and activities.

Mr. Clayton is an internationally recognized gaming attorney whose experience includes serving as a Member of the Nevada Gaming Control Board, as Chief of the Nevada Gaming Control Board’s Corporate Securities Division, as General Counsel and Company Secretary for several U.S. listed gaming companies, and as a gaming and corporate attorney for a number of gaming companies. From 2014 through earlier this year he served as Chair of Greenberg Traurig L.P.’s global gaming practice where he oversaw the firm’s international gaming practice for clients including Genting Berhad, Caesars Entertainment, Las Vegas Sands, 888 Holdings, DraftKings, Flutter and Entain, as well as various investment banks and lenders to the industry. He was a member of the Nevada State Gaming Control Board from 2005-2008. Mr. Clayton currently serves as an independent member of the Palms Resort Casino compliance committee and during his career he also served on the compliance committees at Caesars Entertainment, The Cosmopolitan of Las Vegas, and Silicon Gaming.

Paul Godfrey, Chairman of Bragg, commented, “Mark is recognized as one of the most accomplished attorneys in the gaming industry, with a career that spans decades of providing legal and strategic counsel to clients that are among the industry’s leaders. Mark’s wealth of expertise and experience will serve us well as we continue to execute on our global B2B iGaming expansion initiatives. We are very pleased to welcome Mark to the Board.”

Mr. Clayton holds a J.D., with honors, from the Pepperdine University School of Law and a B.S. in Business Administration, Accounting and Finance from Washington University in St. Louis. He is a Member of the State Bar of Nevada and has served as Vice Chair for its Gaming Law Section. He has also served as an Adjunct Professor at the University of Nevada’s William S. Boyd School of Law. His professional credentials include Board Member of UNLV’s Gaming Law Advisory Board, Trustee and Member of the International Association of Gaming Advisors, Member of the International Masters of Gaming Law, and Fellow of the American Bar Foundation. His recognitions include Star Individual in Gaming & Gambling by Chambers Global, a Leading Lawyer for Gaming & Licensing by Chambers USA Guide, one of the Best Lawyers in America by Gaming Law, “Lawyer of the Year” by Gaming Law Las Vegas, one of the “Top Lawyers” by Vegas Inc., and among the “Top 10 Gaming Attorneys” by the Las Vegas Business Press.

About Bragg Gaming Group

Bragg Gaming Group (NASDAQ: BRAG,TSX: BRAG) is a content-driven iGaming technology provider and owner of leading B2B companies in the iGaming industry. Since its inception in 2018, Bragg has consistently expanded its operations across Europe, North America and Latin America and is continuing to grow as an international industry leader within the global online gaming market.

Through its wholly owned subsidiary ORYX Gaming, Bragg delivers proprietary, exclusive and aggregated casino content via its in-house remote games server (RGS) and ORYX Hub distribution platform. ORYX offers a full turnkey iGaming solution, including its Player Account Management (PAM) platform, as well as managed operational and marketing services.

Nevada-based Wild Streak Gaming is Bragg’s wholly owned premium US gaming content studio. Wild Streak has a popular portfolio of casino games that are offered across land-based, online and social casino operators in global markets including the U.S. and U.K.

Nevada-based Spin Games is Bragg’s wholly owned B2B gaming technology and content provider currently servicing the U.S. market. Spin holds licenses in key iGaming-regulated U.S. states and supplies Tier 1 operators in the region.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220726006035/en/

Yaniv Spielberg

Chief Strategy Officer

Bragg Gaming Group

[email protected]

Joseph Jaffoni, Richard Land, James Leahy

JCIR

212-835-8500 or [email protected]

KEYWORDS: North America Canada

INDUSTRY KEYWORDS: Internet Electronic Games Casino/Gaming Technology Entertainment

MEDIA:

Logo

Premier Financial Corp. Announces Second Quarter 2022 Results Including Strong Loan and Deposit Growth

Second Quarter 2022 Highlights

• Loan growth of $494.1 million (up 35.7% annualized) including $314.8 million for commercial loans excluding PPP (up 34.5% annualized) and $139.2 million for residential loans including held for sale (up 37.8% annualized)
• Deposit growth of $199.1 million (up 12.6% annualized) including $53.4 million of non-interest-bearing (up 12.3% annualized)
• Net interest income (tax equivalent) of $59.3 million or $58.5 million excluding PPP and marks, up 2.1% and 8.8%, respectively, from 2022 first quarter
• Net interest margin (tax equivalent) of 3.36% or 3.32% excluding PPP and acquisition marks accretion, down six but up 12 basis points, respectively, from 2022 first quarter
• Asset quality improved with non-performing loans down 26.6% and classified loans down 19.0% from 2022 first quarter
• Declared dividend of $0.30 per share, up 11.1% from prior year comparable period

DEFIANCE, Ohio–(BUSINESS WIRE)–
Premier Financial Corp. (Nasdaq: PFC) (“Premier” or the “Company”) announced today 2022 second quarter results. Net income for the second quarter of 2022 was $22.4 million, or $0.63 per diluted common share, compared to $31.4 million, or $0.84 per diluted common share, for the second quarter of 2021. The year-over-year comparison is primarily impacted by increased provision for credit losses due to loan growth, lower PPP interest income and securities gain/loss fluctuations, which are summarized as follows and discussed further below.

$000s except EPS	Second quarter 2022			Second quarter 2021
Item	Pre-tax	After-tax	EPS	Pre-tax	After-tax	EPS
Provision benefit (expense)	($6,566)	($5,187)	($0.15)	$3,919	$3,096	$0.08
PPP interest income	$160	$126	$0.00	$3,950	$3,121	$0.08
Security gains (losses)	($1,161)	($917)	($0.03)	$661	$522	$0.01

“Excellent work by the entire Premier team to essentially drive an entire year’s worth of loan and deposit growth into a single quarter,” said Gary Small, President and CEO of Premier. “Commercial, consumer and residential mortgage balances grew in a range of 8.6% to 13.5% for the quarter while deposit growth totaled 3.2%. Year-to-date loan growth adjusting for PPP totaled 12.4%, a reflection of the strength of the business opportunities across our markets and the solid financial position of the households we serve.”

Quarterly results

Strong loan and deposit growth

Gross loans including those held for sale increased $494.1 million (up 35.7% annualized) on a linked quarter basis. Loan growth occurred in each category including $314.8 million from commercial loans excluding PPP (up 34.5% annualized), $139.2 million from residential loans including held for sale (up 37.8% annualized) and $53.2 million from consumer/home equity loans (up 54.1% annualized). PPP loans decreased $14.1 million and were only $4.6 million as of June 30, 2022.

Deposits increased $199.1 million (up 12.6% annualized) on a linked quarter basis. Deposit growth occurred in each category including $53.4 million from non-interest bearing deposits (up 12.3% annualized) and $145.8 million from interest-bearing deposits (up 12.7% annualized).

Net interest income and margin expansion

Net interest income of $59.3 million on a tax equivalent basis in the second quarter of 2022 was up 2.1% from $58.1 million in the first quarter of 2022 and up 4.3% from $56.9 million in the second quarter of 2021. Net interest margin of 3.36% in the second quarter of 2022 decreased eight basis points from 3.44% in the first quarter of 2022 but increased two basis points from 3.34% in the second quarter of 2021. Results for all periods include the impact of PPP as well as acquisition marks and related accretion for the UCFC acquisition. Second quarter 2022 includes $469,000 of accretion in interest income, $237,000 of accretion in interest expense and $160,000 of interest income on average balances of $13.0 million for PPP. Only $12,000 of PPP fees remain unrecognized as of June 30, 2022. Excluding the impact of acquisition marks accretion and PPP loans, net interest income was $58.5 million, up 8.8% from $53.7 million in the first quarter of 2022 and up 14.0% from $51.3 million in the second quarter of 2021. Additionally, net interest margin was 3.32% for the second quarter of 2022, up 12 basis points from 3.20% for the first quarter of 2022 and the second quarter of 2021. These improved results are primarily due to the combination of loan growth excluding PPP as discussed above and higher loan yields excluding PPP and acquisition marks accretion, which were 3.94% for the second quarter of 2022 compared to 3.80% in the first quarter of 2022 and 3.91% in the second quarter of 2021. The cost of funds in the second quarter of 2022 was 0.24%, up six basis points from the first quarter of 2022 but down two basis points from the second quarter of 2021. The linked quarter increase was primarily due to an increased utilization of higher cost FHLB borrowings as a result of loan growth in excess of deposit growth. The year-over-year decrease is primarily due to lower average deposit costs, which were 0.17% for the second quarter of 2022 compared to 0.22% for the second quarter of 2021.

Service fees increasing but total non-interest income impacted by mortgage banking and securities

Service fees in the second quarter of 2022 were $6.7 million, an 11% increase from $6.0 million in the first quarter of 2022 and a 6% increase from $6.3 million in the second quarter of 2021, primarily due to increased consumer activity for interchange and ATM/NSF charges. However, total non-interest income in the second quarter of 2022 of $14.4 million was down from $16.9 million in the first quarter of 2022 and $17.3 million in the second quarter of 2021 due to fluctuations in mortgage banking and gains/losses on securities. Mortgage banking income decreased $2.3 million on a linked quarter basis due to a $1.4 million decrease in gains primarily from lower saleable mix and a $0.9 million lower MSR valuation gain. Mortgage banking income for the second quarter decreased $0.2 million year-over-year due to a $1.5 million decrease in gains primarily from compressed margins and lower saleable mix offset by a $1.3 million benefit from lower MSR amortization and an MSR valuation gain in 2022 compared to a loss in 2021. Securities losses were $1.2 million in the second quarter of 2022 from decreased valuations on equity securities, compared to $0.6 million of losses on equity securities in the first quarter of 2022 and compared to $0.7 million of net gains in the second quarter of 2021, comprised of $1.5 million from available-for-sale security sales gains offset by $0.8 million of losses on equity securities. Other income for the second quarter decreased $1.5 million from 2021, primarily due to a $1.3 million non-recurring settlement payment in the second quarter of 2021.

“The rising rate environment is having a predictably favorable effect on net interest income,” said Small. “Margin improvement combined with outstanding loan growth make a powerful combination overcoming the unfavorable effects of a flat to inverted yield curve. Our favorable interest income trend is serving to offset the negative effect the current rate environment has created for the residential mortgage business. While our mortgage origination activity has performed well during the first half of the year, the combination of rising rates, interest rate volatility, and general market uncertainty continues to put pressure on gain on sale fee income and is expected to continue through the remainder of the year.”

Managing non-interest expenses and efficiency

Non-interest expenses in the second quarter of 2022 were $39.1 million, a 5% decrease from $41.3 million in the first quarter of 2022 but a 3% increase from $38.1 million in the second quarter of 2021, primarily due to fluctuations in compensation and benefit expenses. Compensation and benefits were $22.3 million in the second quarter of 2022, compared to $25.5 million in the first quarter of 2022 and $21.0 million in the second quarter of 2021. The linked quarter decrease was primarily due to higher deferred costs related to increased loan production and lower healthcare benefit costs. The year-over-year increase was primarily due to costs related to higher staffing levels for our growth initiatives. All other non-interest expenses increased $1.0 million on a linked quarter basis primarily due to consulting/advisory services and decreased a net $0.3 million on a year-over-year basis due to cost cutting initiatives. The efficiency ratio for the second quarter 2022 of 52.23% improved from 54.60% in the first quarter of 2022, primarily due to lower expenses, and was generally consistent with 51.85% in the second quarter of 2021.

“We continue to invest in our people and efforts to improve our client’s experience while managing to keep our overall expense profile well under control,” said Small.

Credit quality

Non-performing assets totaled $35.2 million, or 0.44% of assets, at June 30, 2022, a decrease from $47.6 million at March 31, 2022, and from $41.3 million at June 30, 2021. Loan delinquencies increased to $11.2 million, or 0.2% of loans, at June 30, 2022, from $7.6 million at March 31, 2022, and from $9.9 million at June 30, 2021. Classified loans totaled $48.8 million, or 0.7% of loans, as of June 30, 2022, a decrease from $60.3 million at March 31, 2022, and from $101.3 million at June 30, 2021.

The 2022 second quarter results include net loan charge-offs of $5.3 million and a total provision expense of $6.6 million, compared with net loan recoveries of $244,000 and a total provision benefit of $3.9 million for the same period in 2021. The current year provision is primarily due to loan growth, whereas the prior year provision was primarily due to the improving economic environment following the COVID-19 pandemic-induced economic recession and reserve increase in 2020. The allowance for credit losses as a percentage of total loans was 1.14% at June 30, 2022, compared with 1.25% at March 31, 2022, and 1.33% at June 30, 2021. The allowance for credit losses as a percentage of total loans excluding PPP and including unaccreted acquisition marks was 1.21% at June 30, 2022, compared with 1.34% at March 31, 2022, and 1.57% at June 30, 2021. The continued economic improvement following the 2020 pandemic-related downturn has resulted in a year-over-year decrease in the allowance percentages.

“Asset quality continued to improve this quarter with a 27% decrease in non-performing loans and a 19% decrease in classified loans,” said Paul Nungester, CFO of Premier. “Our non-performing loans have declined to 0.5% of total loans while our coverage level of non-performing loans has increased to 193%.”

Year to date results

For the six-month period ended June 30, 2022, net income totaled $48.7 million, or $1.36 per diluted common share, compared to $72.4 million, or $1.94 per diluted common share for the six months ended June 30, 2021. The year-over-year comparison is primarily impacted by fluctuations in the provision for credit losses, mortgage banking income, PPP interest income and securities gains/losses, which are summarized as follows.

$000s except EPS	First half 2022			First half 2021
Item	Pre-tax	After-tax	EPS	Pre-tax	After-tax	EPS
Provision benefit (expense)	($7,501)	($5,926)	($0.17)	$10,882	$8,596	$0.23
Mortgage banking income	$6,200	$4,898	$0.14	$12,691	$10,025	$0.27
PPP interest income	$3,801	$3,003	$0.08	$8,971	$7,087	$0.19
Security gains (losses)	($1,804)	($1,425)	($0.04)	$2,787	$2,202	$0.06

Net interest income of $117.4 million on a tax equivalent basis in the first half of 2022 was up 3.3% from $113.6 million in the first half of 2021. Net interest margin of 3.40% in the first half of 2022 increased by one basis point from 3.39% in the first half of 2021. Results for each period include the impact of PPP as well as acquisition marks and related accretion for the UCFC acquisition. The first half of 2022 includes $959,000 of accretion in interest income, $484,000 of accretion in interest expense and $3.8 million of interest income on average balances of $22.9 million for PPP. Excluding the impact of acquisition marks accretion and PPP loans, net interest income was $112.2 million, up 10.8% from $101.3 million in the first half of 2021. Additionally, net interest margin was 3.26% for the first half of 2022, up four basis points from 3.22% for first half of 2021. These improved results are primarily due to lower costs of funds and loan growth excluding PPP, partially offset by lower PPP income and accretion from acquisition marks. Cost of funds in the first half of 2022 were 0.21%, down 8 basis points from the first half of 2021. The year-over-year decrease is primarily due to lower average deposit costs, which were 0.16% for the first half of 2022 compared to 0.25% for the first half of 2021.

Service fees in the first half of 2022 were $12.7 million, an 8% increase from $11.8 million in the first half of 2021, primarily due to increased consumer activity for interchange and ATM/NSF charges. However, total non-interest income in the first half of 2022 of $31.2 million was down from $43.4 million in the first half of 2021 due to fluctuations in mortgage banking, gains/losses on securities and other income. Mortgage banking income decreased $6.5 million from 2021 due to a $4.6 million decrease in gains primarily from compressed margins and lower saleable mix and a $3.3 million decrease from lower MSR valuation gains, partially offset by a $1.5 million benefit from lower MSR amortization. Securities losses were $1.8 million in the first half of 2022 from decreased valuations on equity securities compared to $2.8 million of net gains in the first half of 2021 comprised of $2.0 million from available-for-sale security sales gains and $0.8 million of gains on equity securities. Other income for the first half decreased $1.5 million from 2021, primarily due to a $1.3 million non-recurring settlement payment in the first half of 2021.

Non-interest expenses in the first half of 2022 were $80.4 million, a 5% increase from $76.7 million in the first half of 2021, primarily due to fluctuations in compensation and benefit expenses. Compensation and benefits were $47.8 million in the first half of 2022 compared to $43.0 million in the first half of 2021. The year-over-year increase was primarily due to costs related to higher staffing levels for our growth initiatives. All other non-interest expenses decreased a net $1.2 million on a year-over-year basis due to cost cutting initiatives. The efficiency ratio for the first half of 2022 was 53.42% compared to 49.75% in the first half of 2021, partly due to higher expenses but primarily due to lower non-interest income discussed above.

The 2022 first half results include net loan charge-offs of $5.2 million and a total provision expense of $7.5 million, compared with net loan recoveries of $500,000 and a total provision benefit of $10.9 million for the same period in 2021. The current year’s provision expense is primarily due to loan growth, whereas the prior year’s provision benefit was primarily due to the improving economic environment following the COVID-19 pandemic-induced economic recession and reserve increase in 2020.

Total assets at $8.01 billion

Total assets at June 30, 2022, were $8.01 billion, compared to $7.59 billion at March 31, 2022, and $7.59 billion at June 30, 2021. Gross loans receivable were $5.90 billion at June 30, 2022, compared to $5.39 billion at March 31, 2022, and $5.35 billion at June 30, 2021. At June 30, 2022, gross loans receivable increased $547.7 million from a year ago, despite a $282.7 million decrease in PPP loans. Excluding PPP, loans grew $830.4 million organically, or 16.4% from a year ago. Commercial loans excluding PPP increased by $543.2 million from June 30, 2021, to 2022, or 15.9%. Securities at June 30, 2022, were $1.15 billion, compared to $1.23 billion at March 31, 2022, and $1.29 billion at June 30, 2021. Also, at June 30, 2022, goodwill and other intangible assets totaled $339.3 million compared to $340.6 million at March 31, 2022, and $345.1 million at June 30, 2021, with the decreases attributable to intangibles amortization.

Total deposits at June 30, 2021, were $6.52 billion, compared with $6.32 billion at March 31, 2022, and $6.29 billion at June 30, 2021. At June 30, 2022, total deposits grew $199.1 million organically, or 12.6% annualized from the prior quarter and $224.9 million of 3.6% from June 30, 2021.

Total stockholders’ equity was $0.90 billion at June 30, 2022, compared to $0.94 billion at March 31, 2022, and $1.03 billion at June 30, 2021. The quarterly decrease in stockholders’ equity was primarily due to a decrease in accumulated other comprehensive income (“AOCI”) and buybacks. The decrease in AOCI is primarily related to a $42.0 million negative valuation adjustment on the available-for-sale securities portfolio. The Company also completed the repurchase of 90,870 common shares for $2.6 million during the quarter. At June 30, 2022, 1,200,130 common shares remained available for repurchase under the Company’s existing repurchase program.

Dividend to be paid August 12

The Board of Directors declared a quarterly cash dividend of $0.30 per common share payable August 12, 2022, to shareholders of record at the close of business on August 5, 2022. The dividend represents an annual dividend of 4.4 percent based on the Premier common stock closing price on July 25, 2022. Premier has approximately 35,555,000 common shares outstanding.

Conference call

Premier will host a conference call at 11:00 a.m. ET on Wednesday, July 27, 2022, to discuss the earnings results and business trends. The conference call may be accessed by calling 1-844-200-6205 and using access code 276702. Internet access to the call is also available (in listen-only mode) at the following URL: https://events.q4inc.com/attendee/403093314. The webcast replay of the conference call will be available at www.PremierFinCorp.com for one year.

About Premier Financial Corp.

Premier Financial Corp. (Nasdaq: PFC), headquartered in Defiance, Ohio, is the holding company for Premier Bank and First Insurance Group. Premier Bank, headquartered in Youngstown, Ohio, operates 74 branches and 12 loan offices in Ohio, Michigan, Indiana, Pennsylvania and West Virginia (West Virginia office operates as Home Savings Bank) and serves clients through a team of wealth professionals dedicated to each community banking branch. First Insurance Group is a full-service insurance agency with ten offices in Ohio. For more information, visit the company’s website at PremierFinCorp.com.

Financial Statements and Highlights Follow

Safe Harbor Statement

This document may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These statements may include, but are not limited to, statements regarding projections, forecasts, goals and plans of Premier Financial Corp. and its management, future movements of interests, loan or deposit production levels, future credit quality ratios, future strength in the market area, and growth projections. These statements do not describe historical or current facts and may be identified by words such as “intend,” “intent,” “believe,” “expect,” “estimate,” “target,” “plan,” “anticipate,” or similar words or phrases, or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “may,” “can,” or similar verbs. There can be no assurances that the forward-looking statements included in this presentation will prove to be accurate. In light of the significant uncertainties in the forward-looking statements, the inclusion of such information should not be regarded as a representation by Premier or any other persons, that our objectives and plans will be achieved. Forward-looking statements involve numerous risks and uncertainties, any one or more of which could affect Premier’s business and financial results in future periods and could cause actual results to differ materially from plans and projections. These risks and uncertainties include, but not limited to: impacts from the novel coronavirus (COVID-19) pandemic on the economy, financial markets, our customers, and our business and results of operation; changes in interest rates; disruptions in the mortgage market; risks and uncertainties inherent in general and local banking, insurance and mortgage conditions; political uncertainty; uncertainty in U.S. fiscal or monetary policy; uncertainty concerning or disruptions relating to tensions surrounding the current socioeconomic landscape; competitive factors specific to markets in which Premier operates; increasing competition for financial products from other financial institutions and nonbank financial technology companies; legislative or regulatory rulemaking or actions; capital market conditions; security breaches or unauthorized disclosure of confidential customer or Company information; interruptions in the effective operation of information and transaction processing systems of Premier or Premier’s vendors and service providers; failures or delays in integrating or adopting new technology; the impact of the cessation of LIBOR interest rates and implementation of a replacement rate; and other risks and uncertainties detailed from time to time in our Securities and Exchange Commission (SEC) filings, including our Annual Report on Form 10-K for the year ended December 31, 2021 and any further amendments thereto. All forward-looking statements made in this presentation are based on information presently available to the management of Premier and speak only as of the date on which they are made. We assume no obligation to update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as may be required by law. As required by U.S. GAAP, Premier will evaluate the impact of subsequent events through the issuance date of its June 30, 2022, consolidated financial statements as part of its Quarterly Report on Form 10-Q to be filed with the SEC. Accordingly, subsequent events could occur that may cause Premier to update its critical accounting estimates and to revise its financial information from that which is contained in this news release.

Non-GAAP Reporting Measures

We believe that net income, as defined by U.S. GAAP, is the most appropriate earnings measurement. However, we consider core net interest income to be a useful supplemental measure of our operating performance. We define core net interest income as net interest income on a tax-equivalent basis excluding income from PPP loans and purchase accounting marks accretion. We believe that this metric is a useful supplemental measure of operating performance because investors and equity analysts may use this measure to compare the operating performance of the Company between periods or as compared to other financial institutions or other companies on a consistent basis without having to account for income from PPP loans and purchase accounting marks accretion. Our supplemental reporting measures and similarly entitled financial measures are widely used by investors, equity and debt analysts and ratings agencies in the valuation, comparison, rating and investment recommendations of companies. Our management uses these financial measures to facilitate internal and external comparisons to historical operating results and in making operating decisions. Additionally, they are utilized by the Board of Directors to evaluate management. The supplemental reporting measures do not represent net income or cash flow provided from operating activities as determined in accordance with U.S. GAAP and should not be considered as alternative measures of profitability or liquidity. Finally, the supplemental reporting measures, as defined by us, may not be comparable to similarly entitled items reported by other financial institutions or other companies. Please see the exhibits for reconciliations of our supplemental reporting measures.

Consolidated Balance Sheets (Unaudited)
Premier Financial Corp.
	June 30,			March 31,			December 31,			September 30,			June 30,
(in thousands)	2022			2022			2021			2021			2021
Assets
Cash and cash equivalents
Cash and amounts due from depositories	$	62,080		$	62,083		$	54,858		$	63,480		$	63,790
Interest-bearing deposits		72,314			91,683			106,708			51,614			67,718
		134,394			153,766			161,566			115,094			131,508
Available-for-sale, carried at fair value		1,140,466			1,219,365			1,206,260			1,250,087			1,279,128
Equity securities, carried at fair value		13,293			13,454			14,097			12,965			12,945
Securities investments		1,153,759			1,232,819			1,220,357			1,263,052			1,292,073
Loans (1)		5,890,823			5,388,331			5,296,168			5,269,566			5,348,400
Allowance for credit losses – loans		(67,074	)		(67,195	)		(66,468	)		(73,217	)		(71,367	)
Loans, net		5,823,749			5,321,136			5,229,700			5,196,349			5,277,033
Loans held for sale		145,092			153,498			162,947			178,490			199,070
Mortgage servicing rights		20,693			20,715			19,538			19,105			18,041
Accrued interest receivable		22,533			21,765			20,767			22,994			23,459
Federal Home Loan Bank stock		23,991			15,332			11,585			11,585			12,747
Bank Owned Life Insurance		168,746			167,763			166,767			166,866			145,919
Office properties and equipment		54,060			54,684			55,602			56,073			56,259
Real estate and other assets held for sale		462			253			171			261			45
Goodwill		317,948			317,948			317,948			317,948			317,948
Core deposit and other intangibles		21,311			22,691			24,129			25,612			27,140
Other assets		123,886			108,510			90,325			94,889			92,478
Total Assets	$	8,010,624		$	7,590,880		$	7,481,402		$	7,468,318		$	7,593,720
Liabilities and Stockholders’ Equity
Non-interest-bearing deposits	$	1,786,516		$	1,733,157		$	1,724,772		$	1,618,769		$	1,649,664
Interest-bearing deposits		4,729,828			4,584,078			4,557,279			4,629,889			4,641,795
Total deposits		6,516,344			6,317,235			6,282,051			6,248,658			6,291,459
Advances from FHLB		380,000			150,000			–			–			105,000
Notes payable and other interest-bearing liabilities		–			–			–			18,812			–
Subordinated debentures		85,039			85,008			84,976			84,944			84,913
Advance payments by borrowers		40,344			20,332			24,716			19,495			19,474
Reserve for credit losses – unfunded commitments		6,755			5,340			5,031			5,838			5,613
Other liabilities		80,995			69,669			61,132			58,702			59,558
Total Liabilities		7,109,477			6,647,584			6,457,906			6,436,449			6,566,017
Stockholders’ Equity
Preferred stock		–			–			–			–			–
Common stock, net		306			306			306			306			306
Additional paid-in-capital		690,905			691,350			691,132			690,783			689,785
Accumulated other comprehensive income (loss)		(126,754	)		(75,497	)		(3,428	)		1,609			10,953
Retained earnings		470,779			459,087			443,517			428,518			410,153
Treasury stock, at cost		(134,089	)		(131,950	)		(108,031	)		(89,347	)		(83,494	)
Total Stockholders’ Equity		901,147			943,296			1,023,496			1,031,869			1,027,703
Total Liabilities and Stockholders’ Equity	$	8,010,624		$	7,590,880		$	7,481,402		$	7,468,318		$	7,593,720
(1) Includes PPP loans of:	$	4,561		$	18,660		$	58,906		$	143,949		$	287,229

Consolidated Statements of Income (Unaudited)
Premier Financial Corp.
	Three Months Ended																Six Months Ended
(in thousands, except per share amounts)	6/30/22			3/31/22			12/31/21			9/30/21			6/30/21				6/30/22			6/30/21
Interest Income:
Loans	$	56,567		$	55,241		$	55,007		$	55,443		$	55,772			$	111,808		$	113,338
Investment securities		6,197			5,479			5,369			5,325			4,994				11,676			8,674
Interest-bearing deposits		120			46			56			33			42				166			108
FHLB stock dividends		174			59			58			60			56				233			115
Total interest income		63,058			60,825			60,490			60,861			60,864				123,883			122,235
Interest Expense:
Deposits		2,671			2,222			2,615			3,144			3,559				4,893			7,723
FHLB advances		527			13			–			11			12				540			12
Subordinated debentures		763			696			673			671			674				1,459			1,369
Notes Payable		1			–			–			–			–				1			–
Total interest expense		3,962			2,931			3,288			3,826			4,245				6,893			9,104
Net interest income		59,096			57,894			57,202			57,035			56,619				116,990			113,131
Provision (benefit) for credit losses – loans		5,151			626			2,816			1,594			(3,631	)			5,777			(11,145	)
Provision (benefit) for credit losses – unfunded commitments		1,415			309			(807	)		226			(288	)			1,724			263
Total provision (benefit) for credit losses		6,566			935			2,009			1,820			(3,919	)			7,501			(10,882	)
Net interest income after provision		52,530			56,959			55,193			55,215			60,538				109,489			124,013
Non-interest Income:
Service fees and other charges		6,676			6,000			6,351			6,067			6,282				12,676			11,751
Mortgage banking income		1,948			4,252			3,060			6,175			2,157				6,200			12,691
Gain (loss) on sale of available for sale securities		–			–			–			233			1,469				–			1,985
Gain (loss) on equity securities		(1,161	)		(643	)		1,132			20			(808	)			(1,804	)		802
Insurance commissions		4,334			4,639			3,379			3,461			4,059				8,973			8,940
Wealth management income		1,414			1,477			1,383			1,321			1,566				2,891			3,322
Income from Bank Owned Life Insurance		983			996			2,145			947			859				1,979			2,028
Other non-interest income		171			142			129			146			1,700				313			1,859
Total Non-interest Income		14,365			16,863			17,579			18,370			17,284				31,228			43,378
Non-interest Expense:
Compensation and benefits		22,334			25,541			24,247			23,355			21,046				47,875			43,044
Occupancy		3,494			3,700			3,859			3,693			3,837				7,194			7,949
FDIC insurance premium		802			593			781			695			522				1,395			1,420
Financial institutions tax		1,074			1,191			526			1,187			1,177				2,265			2,367
Data processing		3,442			3,335			3,447			3,387			3,334				6,777			6,716
Amortization of intangibles		1,380			1,438			1,483			1,528			1,575				2,818			3,197
Other non-interest expense		6,563			5,497			7,145			5,256			6,623				12,060			12,043
Total Non-interest Expense		39,089			41,295			41,488			39,101			38,114				80,384			76,736
Income before income taxes		27,806			32,527			31,284			34,484			39,708				60,333			90,655
Income tax expense		5,446			6,170			5,974			6,124			8,323				11,616			18,274
Net Income	$	22,360		$	26,357		$	25,310		$	28,360		$	31,385			$	48,717		$	72,381
Earnings per common share:
Basic	$	0.63		$	0.73		$	0.69		$	0.76		$	0.84			$	1.36		$	1.94
Diluted	$	0.63		$	0.73		$	0.69		$	0.76		$	0.84			$	1.36		$	1.94
Average Shares Outstanding:
Basic		35,560			35,978			36,740			37,100			37,276				35,768			37,274
Diluted		35,682			36,090			36,848			37,185			37,358				35,880			37,351

Premier Financial Corp.
Selected Quarterly Information
(dollars in thousands, except per share data)	2Q22			1Q22			4Q21			3Q21			2Q21				YTD 2022			YTD 2021
Summary of Operations
Tax-equivalent interest income (1)	$	63,283		$	61,054		$	60,740		$	61,117		$	61,134			$	124,336		$	122,742
Interest expense		3,962			2,931			3,288			3,826			4,245				6,893			9,104
Tax-equivalent net interest income (1)		59,321			58,123			57,452			57,291			56,889				117,443			113,638
Provision expense (benefit) for credit losses		6,566			935			2,009			1,820			(3,919	)			7,501			(10,882	)
Investment securities gains (losses)		(1,161	)		(643	)		1,132			253			661				(1,804	)		2,787
Non-interest income (ex securities gains/losses)		15,526			17,506			16,447			18,117			16,623				33,032			40,591
Non-interest expense		39,089			41,295			41,488			39,101			38,114				80,384			76,736
Income tax expense		5,446			6,170			5,974			6,124			8,323				11,616			18,274
Net income		22,360			26,357			25,310			28,360			31,385				48,717			72,381
Tax equivalent adjustment (1)		225			229			250			256			270				453			507
At Period End
Total assets	$	8,010,624		$	7,590,880		$	7,481,402		$	7,468,318		$	7,593,720
Goodwill and intangibles		339,259			340,639			342,077			343,560			345,088
Tangible assets (2)		7,671,365			7,250,241			7,139,325			7,124,758			7,248,632
Earning assets		7,218,905			6,881,663			6,797,765			6,774,307			6,920,008
Loans		5,890,823			5,388,331			5,296,168			5,269,566			5,348,400
Allowance for loan losses		67,074			67,195			66,468			73,217			71,367
Deposits		6,516,344			6,317,235			6,282,051			6,248,658			6,291,459
Stockholders’ equity		901,147			943,296			1,023,496			1,031,869			1,027,703
Stockholders’ equity / assets		11.25	%		12.43	%		13.68	%		13.82	%		13.53	%
Tangible equity (2)		561,888			602,657			681,419			688,309			682,615
Tangible equity / tangible assets		7.32	%		8.31	%		9.54	%		9.66	%		9.42	%
Average Balances
Total assets	$	7,742,550		$	7,541,414		$	7,510,397		$	7,529,100		$	7,549,531			$	7,626,888		$	7,444,791
Earning assets		7,051,661			6,754,862			6,736,250			6,773,021			6,806,275				6,904,082			6,709,348
Loans		5,667,853			5,382,825			5,356,113			5,416,696			5,495,782				5,526,127			5,562,379
Deposits and interest-bearing liabilities		6,706,250			6,415,483			6,386,341			6,422,455			6,454,731				6,561,669			6,365,441
Deposits		6,385,857			6,314,217			6,301,384			6,317,229			6,339,673				6,350,235			6,265,394
Stockholders’ equity		921,847			1,033,816			1,035,717			1,020,206			1,006,757				961,873			989,800
Goodwill and intangibles		339,932			341,353			342,853			344,331			345,972				340,639			346,810
Tangible equity (2)		581,915			692,463			692,864			675,875			660,785				621,234			642,990
Per Common Share Data
Net Income (Loss):
Basic	$	0.63		$	0.73		$	0.69		$	0.76		$	0.84			$	1.36		$	1.94
Diluted		0.63			0.73			0.69			0.76			0.84				1.36			1.94
Dividends Paid		0.30			0.30			0.28			0.27			0.26				0.60			0.50
Market Value:
High	$	30.13		$	32.52		$	34.00		$	32.72		$	33.97			$	32.52		$	35.90
Low		25.31			28.58			28.75			25.80			27.76				25.31			22.23
Close		25.35			30.33			30.91			31.84			28.41				30.91			28.41
Common Book Value		25.35			26.48			28.13			27.90			27.64
Tangible Common Book Value (2)		15.80			16.92			18.73			18.61			18.36
Shares outstanding, end of period (000s)		35,555			35,621			36,384			36,978			37,178
Performance Ratios (annualized)
Tax-equivalent net interest margin (1)		3.36	%		3.44	%		3.41	%		3.38	%		3.34	%			3.40	%		3.39	%
Return on average assets		1.16	%		1.42	%		1.34	%		1.49	%		1.67	%			1.29	%		1.96	%
Return on average equity		9.73	%		10.34	%		9.70	%		11.03	%		12.50	%			10.21	%		14.75	%
Return on average tangible equity		15.41	%		15.44	%		14.49	%		16.65	%		19.05	%			15.81	%		22.70	%
Efficiency ratio (3)		52.23	%		54.60	%		56.14	%		51.85	%		51.85	%			53.42	%		49.75	%
Effective tax rate		19.59	%		18.97	%		19.10	%		17.76	%		20.96	%			19.25	%		20.16	%
Common dividend payout ratio		47.62	%		41.10	%		40.58	%		35.53	%		30.95	%			44.12	%		25.77	%
(1) Interest income on tax-exempt securities and loans has been adjusted to a tax-equivalent basis using the statutory federal income tax rate of 21%.
(2) Tangible assets = total assets less the sum of goodwill and core deposit and other intangibles. Tangible equity = total stockholders’ equity less the sum of goodwill, core deposit and other intangibles, and preferred stock. Tangible common book value = tangible equity divided by shares outstanding at the end of the period.
(3) Efficiency ratio = Non-interest expense divided by sum of tax-equivalent net interest income plus non-interest income, excluding securities gains or losses, net.

Premier Financial Corp.
Yield Analysis
(dollars in thousands)
	Three Months Ended																Six Months Ended
	6/30/22			3/31/22			12/31/21			9/30/21			6/30/21				6/30/22			6/30/21
Average Balances
Interest-earning assets:
Loans receivable (1)	$	5,667,853		$	5,382,825		$	5,356,113		$	5,416,696		$	5,495,782			$	5,526,127		$	5,562,379
Securities		1,288,073			1,250,321			1,245,096			1,273,148			1,193,363				1,269,301			1,009,695
Interest Bearing Deposits		76,401			109,757			123,456			71,276			106,025				92,987			125,732
FHLB stock		19,334			11,959			11,585			11,901			11,105				15,667			11,542
Total interest-earning assets		7,051,661			6,754,862			6,736,250			6,773,021			6,806,275				6,904,082			6,709,348
Non-interest-earning assets		690,889			786,552			774,147			756,079			743,256				722,806			735,443
Total assets	$	7,742,550		$	7,541,414		$	7,510,397		$	7,529,100		$	7,549,531			$	7,626,888		$	7,444,791
Deposits and Interest-bearing liabilities:
Interest bearing deposits	$	4,614,223		$	4,600,801		$	4,609,064		$	4,649,462		$	4,640,196			$	4,607,549		$	4,593,493
FHLB advances and other		234,945			16,278			–			20,098			30,165				126,215			15,166
Subordinated debentures		85,020			84,988			84,957			84,924			84,893				85,004			84,881
Notes payable		428			–			–			204			–				215			–
Total interest-bearing liabilities		4,934,616			4,702,067			4,694,021			4,754,688			4,755,254				4,818,983			4,693,540
Non-interest bearing deposits		1,771,634			1,713,416			1,692,320			1,667,767			1,699,477				1,742,686			1,671,901
Total including non-interest-bearing deposits		6,706,250			6,415,483			6,386,341			6,422,455			6,454,731				6,561,669			6,365,441
Other non-interest-bearing liabilities		114,453			92,115			88,339			86,439			88,043				103,346			89,550
Total liabilities		6,820,703			6,507,598			6,474,680			6,508,894			6,542,774				6,665,015			6,454,991
Stockholders’ equity		921,847			1,033,816			1,035,717			1,020,206			1,006,757				961,873			989,800
Total liabilities and stockholders’ equity	$	7,742,550		$	7,541,414		$	7,510,397		$	7,529,100		$	7,549,531			$	7,626,888		$	7,444,791
Average interest-earning assets to interest-bearing liabilities		143	%		144	%		144	%		142	%		143	%			143	%		143	%
Interest Income/Expense
Interest-earning assets:
Loans receivable (2)	$	56,573		$	55,248		$	55,013		$	55,444		$	55,786			$	111,821		$	113,366
Securities (2)		6,416			5,701			5,612			5,580			5,250				12,116			9,153
Interest Bearing Deposits		120			46			56			33			42				233			108
FHLB stock		174			59			59			60			56				166			115
Total interest-earning assets		63,283			61,054			60,740			61,117			61,134				124,336			122,742
Deposits and Interest-bearing liabilities:
Interest bearing deposits	$	2,671		$	2,222		$	2,615		$	3,144		$	3,559			$	4,893		$	7,723
FHLB advances and other		527			13			–			11			12				540			12
Subordinated debentures		763			696			673			671			674				1,459			1,369
Notes payable		1			–			–			–			–				1			–
Total interest-bearing liabilities		3,962			2,931			3,288			3,826			4,245				6,893			9,104
Non-interest bearing deposits		–			–			–			–			–				–			–
Total including non-interest-bearing deposits		3,962			2,931			3,288			3,826			4,245				6,893			9,104
Net interest income	$	59,321		$	58,123		$	57,452		$	57,291		$	56,889			$	117,443		$	113,638
Less: PPP income		(160	)		(3,641	)		(2,686	)		(2,887	)		(3,950	)			(3,801	)		(8,971	)
Less: Acquisition marks accretion		(706	)		(737	)		(1,595	)		(879	)		(1,641	)			(1,443	)		(3,395	)
Core net interest income	$	58,455		$	53,745		$	53,171		$	53,525		$	51,298			$	112,199		$	101,272
Average Rates (3)
Interest-earning assets:
Loans receivable		3.99	%		4.11	%		4.11	%		4.09	%		4.06	%			4.05	%		4.08	%
Securities (4)		1.99	%		1.82	%		1.80	%		1.75	%		1.76	%			1.91	%		1.81	%
Interest Bearing Deposits		0.63	%		0.17	%		0.18	%		0.19	%		0.16	%			0.50	%		0.17	%
FHLB stock		3.60	%		1.97	%		2.04	%		2.02	%		2.02	%			2.12	%		1.99	%
Total interest-earning assets		3.59	%		3.62	%		3.61	%		3.61	%		3.59	%			3.60	%		3.66	%
Deposits and Interest-bearing liabilities:
Interest bearing deposits		0.23	%		0.19	%		0.23	%		0.27	%		0.31	%			0.21	%		0.34	%
FHLB advances and other		0.90	%		0.32	%		0.00	%		0.22	%		0.16	%			0.86	%		0.16	%
Subordinated debentures		3.59	%		3.28	%		3.17	%		3.16	%		3.18	%			3.43	%		3.23	%
Notes payable		0.93	%		–			–			0.75	%		–				0.93	%		–
Total interest-bearing liabilities		0.32	%		0.25	%		0.28	%		0.32	%		0.36	%			0.29	%		0.39	%
Non-interest bearing deposits		–			–			–			–			–				–			–
Total including non-interest-bearing deposits		0.24	%		0.18	%		0.21	%		0.24	%		0.26	%			0.21	%		0.29	%
Net interest spread		3.27	%		3.37	%		3.33	%		3.29	%		3.23	%			3.31	%		3.27	%
Net interest margin (5)		3.36	%		3.44	%		3.41	%		3.38	%		3.34	%			3.40	%		3.39	%
Core net interest margin (5)		3.32	%		3.20	%		3.21	%		3.27	%		3.20	%			3.26	%		3.22	%
(1) Includes average PPP loans of:	$	12,966		$	32,853		$	101,804		$	219,366		$	378,545			$	22,855		$	406,826
(2) Interest on certain tax exempt loans and securities is not taxable for Federal income tax purposes. In order to compare the tax-exempt yields on these assets to taxable yields, the interest earned on these assets is adjusted to a pre-tax equivalent amount based on the marginal corporate federal income tax rate of 21%.
(3) Annualized.
(4) Securities yield = annualized interest income divided by the average balance of securities, excluding average unrealized gains/losses.
(5) Net interest margin is tax equivalent net interest income divided by average interest-earning assets. Core net interest margin represents net interest margin excluding PPP and acquisition marks accretion.

Premier Financial Corp.
Selected Quarterly Information
(dollars in thousands)	2Q22			1Q22			4Q21			3Q21			2Q21
Loan Portfolio Composition
One to four family residential real estate	$	1,382,202		$	1,222,057		$	1,167,466		$	1,129,877		$	1,138,433
Construction		1,093,695			883,712			862,815			885,586			830,822
Commercial real estate		2,655,730			2,495,469			2,450,349			2,389,759			2,405,653
Commercial		991,803			910,553			895,638			952,729			1,051,972
Home equity and improvement		266,144			261,176			264,354			264,140			261,842
Consumer finance		180,539			132,294			126,417			125,163			118,526
Total loans		6,570,113			5,905,261			5,767,039			5,747,254			5,807,248
Less:
Undisbursed loan funds		688,849			525,545			477,890			481,434			458,156
Deferred loan origination fees		(9,559	)		(8,615	)		(7,019	)		(3,746	)		692
Allowance for credit losses – loans		67,074			67,195			66,468			73,217			71,367
Net Loans	$	5,823,749		$	5,321,136		$	5,229,700		$	5,196,349		$	5,277,033
Loans held for sale	$	145,092		$	153,498		$	162,947		$	178,490		$	199,070
PPP loans	$	4,561		$	18,660		$	58,906		$	143,949		$	287,229
Core commercial loans (1)		3,962,562			3,647,783			3,550,385			3,461,893			3,424,698
Core residential loans (1)		1,612,550			1,473,301			1,452,034			1,449,165			1,455,867
Core loans (1)		5,886,262			5,369,671			5,237,262			5,125,617			5,061,171
Allowance for credit losses – loans
Beginning allowance	$	67,195		$	66,468		$	73,217		$	71,367		$	74,754
Provision (benefit) for credit losses – loans		5,151			626			2,816			1,594			(3,631	)
Net recoveries (charge-offs)		(5,272	)		101			(9,565	)		256			244
Ending allowance	$	67,074		$	67,195		$	66,468		$	73,217		$	71,367
Credit Quality
Total non-performing loans (2)	$	34,735		$	47,298		$	48,014		$	59,865		$	41,296
Real estate owned (REO)		462			253			171			261			45
Total non-performing assets (3)	$	35,197		$	47,551		$	48,185		$	60,126		$	41,341
Net charge-offs (recoveries)		5,272			(101	)		9,565			(256	)		(244	)
Restructured loans, accruing (4)		5,899			6,287			7,768			6,503			5,939
Allowance for credit losses – loans / loans		1.14	%		1.25	%		1.26	%		1.39	%		1.33	%
Allowance for credit losses – loans / non-performing assets		190.57	%		141.31	%		137.94	%		121.77	%		172.63	%
Allowance for credit losses – loans / non-performing loans		193.10	%		142.07	%		138.43	%		122.30	%		172.82	%
Non-performing assets / loans plus REO		0.60	%		0.88	%		0.91	%		1.14	%		0.77	%
Non-performing assets / total assets		0.44	%		0.63	%		0.64	%		0.81	%		0.54	%
Net charge-offs / average loans (annualized)		0.37	%		-0.01	%		0.71	%		-0.02	%		-0.02	%
Net charge-offs / average loans LTM		0.27	%		0.17	%		0.16	%		0.00	%		0.06	%
Deposit Balances
Non-interest-bearing demand deposits	$	1,786,516		$	1,733,157		$	1,724,772		$	1,618,769		$	1,649,664
Interest-bearing demand deposits and money market		3,106,306			3,029,260			2,952,705			2,962,032			2,890,769
Savings deposits		832,859			830,143			804,451			786,929			777,862
Retail time deposits less than $250		532,836			586,967			636,477			692,224			720,317
Retail time deposits greater than $250		257,827			137,708			163,646			188,704			252,847
Total deposits	$	6,516,344		$	6,317,235		$	6,282,051		$	6,248,658		$	6,291,459
(1) Core loans represents total loans excluding undisbursed loan funds, deferred loan origination fees and PPP loans. Core commercial loans represents total commercial real estate, commercial and commercial construction excluding commercial undisbursed loan funds, deferred loan origination fees and PPP loans. Core residential loans represents total loans held for sale, one to four family residential real estate and residential construction excluding residential undisbursed loan funds and deferred loan origination fees.
(2) Non-performing loans consist of non-accrual loans.
(3) Non-performing assets are non-performing loans plus real estate and other assets acquired by foreclosure or deed-in-lieu thereof.
(4) Accruing restructured loans are loans with known credit problems that are not contractually past due and therefore are not included in non-performing loans.

Premier Financial Corp.
Loan Delinquency Information
(dollars in thousands)	Total Balance			Current			30 to 89 days past due			% of Total		Non Accrual Loans			% of Total
June 30, 2022
One to four family residential real estate	$	1,382,202		$	1,367,037		$	7,176		0.5	%	$	7,989		0.6	%
Construction		1,093,695			1,093,695			–		0.0	%		–		0.0	%
Commercial real estate		2,655,730			2,641,216			1		0.0	%		14,513		0.5	%
Commercial		991,803			984,065			–		0.0	%		7,738		0.8	%
Home equity and improvement		266,144			261,576			1,943		0.7	%		2,625		1.0	%
Consumer finance		180,539			176,608			2,061		1.1	%		1,870		1.0	%
Total loans	$	6,570,113		$	6,524,197		$	11,181		0.2	%	$	34,735		0.5	%
March 31, 2022
One to four family residential real estate	$	1,222,057		$	1,206,560		$	3,843		0.3	%	$	11,654		1.0	%
Construction		883,712			883,712			–		0.0	%		–		0.0	%
Commercial real estate		2,495,469			2,480,656			181		0.0	%		14,632		0.6	%
Commercial		910,553			894,923			18		0.0	%		15,612		1.7	%
Home equity and improvement		261,176			256,667			1,333		0.5	%		3,176		1.2	%
Consumer finance		132,294			127,856			2,214		1.7	%		2,224		1.7	%
Total loans	$	5,905,261		$	5,850,374		$	7,589		0.1	%	$	47,298		0.8	%
June 30, 2021
One to four family residential real estate	$	1,138,433		$	1,122,060		$	5,757		0.5	%	$	10,616		0.9	%
Construction		830,822			830,242			580		0.1	%		–		0.0	%
Commercial real estate		2,405,653			2,388,082			53		0.0	%		17,518		0.7	%
Commercial		1,051,972			1,044,265			–		0.0	%		7,707		0.7	%
Home equity and improvement		261,842			256,259			1,955		0.7	%		3,628		1.4	%
Consumer finance		118,526			115,169			1,530		1.3	%		1,827		1.5	%
Total loans	$	5,807,248		$	5,756,077		$	9,875		0.2	%	$	41,296		0.7	%
Loan Risk Ratings Information
(dollars in thousands)	Total Balance			Pass Rated			Special Mention			% of Total		Classified			% of Total
June 30, 2022
One to four family residential real estate	$	1,370,167		$	1,361,875		$	1,244		0.1	%	$	7,048		0.5	%
Construction		1,093,695			1,093,695			–		0.0	%		–		0.0	%
Commercial real estate		2,654,003			2,551,971			77,224		2.9	%		24,808		0.9	%
Commercial		984,972			956,229			21,428		2.2	%		7,315		0.7	%
Home equity and improvement		263,330			261,530			–		0.0	%		1,800		0.7	%
Consumer finance		180,183			178,346			–		0.0	%		1,837		1.0	%
PCD loans		23,763			17,632			95		0.4	%		6,036		25.4	%
Total loans	$	6,570,113		$	6,421,278		$	99,991		1.5	%	$	48,844		0.7	%
March 31, 2022
One to four family residential real estate	$	1,209,537		$	1,198,311		$	1,295		0.1	%	$	9,931		0.8	%
Construction		883,712			883,712			–		0.0	%		–		0.0	%
Commercial real estate		2,492,324			2,373,111			93,550		3.8	%		25,663		1.0	%
Commercial		901,957			869,615			20,558		2.3	%		11,784		1.3	%
Home equity and improvement		258,041			255,883			–		0.0	%		2,158		0.8	%
Consumer finance		131,846			129,747			–		0.0	%		2,099		1.6	%
PCD loans		27,844			19,110			98		0.4	%		8,636		31.0	%
Total loans	$	5,905,261		$	5,729,489		$	115,501		2.0	%	$	60,271		1.0	%
June 30, 2021
One to four family residential real estate	$	1,125,097		$	1,114,219		$	1,117		0.1	%	$	9,761		0.9	%
Construction		830,822			815,429			15,393		1.9	%		–		0.0	%
Commercial real estate		2,393,591			2,217,858			132,099		5.5	%		43,634		1.8	%
Commercial		1,038,059			991,021			24,898		2.4	%		22,140		2.1	%
Home equity and improvement		257,618			255,497			–		0.0	%		2,121		0.8	%
Consumer finance		117,764			116,137			–		0.0	%		1,627		1.4	%
PCD loans		44,297			21,328			905		2.0	%		22,064		49.8	%
Total loans	$	5,807,248		$	5,531,489		$	174,412		3.0	%	$	101,347		1.7	%

Premier Financial Corp.
(dollars in thousands)
	As of and for the three months ended																Six months ended
Mortgage Banking Summary	6/30/22			3/31/22			12/31/21			9/30/21			6/30/21				6/30/22			6/30/21
Revenue from sales and servicing of mortgage loans:
Mortgage banking gains, net	$	1,166		$	2,543		$	2,774		$	5,353		$	2,670			$	3,710		$	8,310
Mortgage loan servicing revenue (expense):
Mortgage loan servicing revenue		1,862			1,879			1,909			1,861			1,887				3,741			3,805
Amortization of mortgage servicing rights		(1,375	)		(1,403	)		(1,774	)		(1,822	)		(1,953	)			(2,778	)		(4,297	)
Mortgage servicing rights valuation adjustments		295			1,233			151			783			(447	)			1,527			4,873
		782			1,709			286			822			(513	)			2,490			4,381
Total revenue from sale/servicing of mortgage loans	$	1,948		$	4,252		$	3,060		$	6,175		$	2,157			$	6,200		$	12,691
Mortgage servicing rights:
Balance at beginning of period	$	22,189		$	22,244		$	21,963		$	21,682		$	21,696			$	22,244		$	21,666
Loans sold, servicing retained		1,058			1,348			2,056			2,103			1,938				2,407			4,312
Mortgage servicing rights acquired		–			–			–			–			–				–			–
Amortization		(1,375	)		(1,403	)		(1,774	)		(1,822	)		(1,953	)			(2,778	)		(4,297	)
Balance at end of period		21,872			22,189			22,245			21,963			21,681				21,873			21,681
Valuation allowance:
Balance at beginning of period		(1,474	)		(2,707	)		(2,858	)		(3,641	)		(3,193	)			(2,707	)		(8,513	)
Impairment recovery (charges)		295			1,233			151			783			(447	)			1,527			4,873
Balance at end of period		(1,179	)		(1,474	)		(2,707	)		(2,858	)		(3,640	)			(1,180	)		(3,640	)
Net carrying value at end of period	$	20,693		$	20,715		$	19,538		$	19,105		$	18,041			$	20,693		$	18,041
Allowance Summary
Total loans	$	5,890,823		$	5,388,331		$	5,296,168		$	5,269,566		$	5,348,400
Less: PPP loans		(4,561	)		(18,660	)		(58,906	)		(143,949	)		(287,229	)
Total loans ex PPP	$	5,886,262		$	5,369,671		$	5,237,262		$	5,125,617		$	5,061,171
Allowance for credit losses (ACL)	$	67,074		$	67,195		$	66,468		$	73,217		$	71,367
Add: Unaccreted purchase accounting marks		3,924			4,652			5,418			7,109			8,003
Adjusted ACL	$	70,998		$	71,847		$	71,886		$	80,326		$	79,370
ACL/Loans		1.14	%		1.25	%		1.26	%		1.39	%		1.33	%
Adjusted ACL/Loans ex PPP		1.21	%		1.34	%		1.37	%		1.57	%		1.57	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220726005983/en/

Paul Nungester

EVP and CFO

419.785.8700

[email protected]

KEYWORDS: United States North America Ohio

INDUSTRY KEYWORDS: Banking Professional Services Insurance Finance

MEDIA:

Logo