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Mar 31, 2024
Premier Financial Q1 2024 Earnings Report
Premier Financial's financial performance was generally in line with expectations, with strong asset management revenue and better than anticipated results from the residential mortgage team.
Key Takeaways
Premier Financial Corp. reported a net income of $17.8 million, or $0.50 per diluted common share, for the first quarter of 2024, compared to $18.1 million, or $0.51 per diluted common share, for the first quarter of 2023. The company saw positive average linked quarter deposit growth, while average loan totals were flat. Non-interest income was boosted by asset management revenue, and the residential mortgage team performed well. Credit costs were favorable for the quarter, with net charge-offs running lower than the initial full-year assumption.
Deposit average balances increased by 2.6% annualized.
Non-interest income was up 6.0%.
Delinquent loans decreased by 12% and net charge-offs were down 11 basis points to 0.02%.
All regulatory capital ratios increased, including Tier 1, which rose 30 basis points to 12.49%.
Revenue by Segment
Forward Guidance
Premier Financial anticipates modest loan and deposit growth for the year and remains confident in its ability to deliver on the full-year growth objectives. The organization anticipates continued favorable expense performance over the course of the year. A strong economy, continued low unemployment, and modest loan growth targets combined with low delinquencies and non-performing asset levels support the expectation for continued favorable credit results.
Positive Outlook
- Projected modest loan and deposit growth for the year
- Confidence in delivering full-year growth objectives
- Anticipated continued favorable expense performance
- Favorable credit results expected due to a strong economy and low unemployment
- Low delinquencies and non-performing asset levels
Challenges Ahead
- Net interest income remains the most challenging profitability component
- Experienced a sharper decline in net interest income than anticipated
- Lower commercial non-interest-bearing deposit balances tied to increased client utilization of cash on hand
Historical Earnings Impact
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Avg. Return Before/After Earnings
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