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Sep 30, 2023
Premier Financial Q3 2023 Earnings Report
Announced third quarter 2023 results, reporting core deposit growth and increased net interest margin
Key Takeaways
Premier Financial Corp. reported a net income of $24.7 million ($0.69 per diluted common share) for Q3 2023, with core net income up from the prior quarter and a net interest margin increase of one basis point to 2.73%. The company experienced deposit growth of $71 million (4.1% annualized), including $92 million in core customer deposits (5.6% annualized).
Core net income increased from the prior quarter.
Net interest margin rose by one basis point to 2.73% from the previous quarter.
Deposits grew by $71 million (4.1% annualized), with core customer deposits up $92 million (5.6% annualized).
Expenses decreased by 14.5%, or 6.8% excluding transaction costs, improving the core efficiency ratio by 96 basis points.
Forward Guidance
Premier Financial Corp. is focused on building capital and making strategic investments to enhance the client experience and benefit the communities it serves. The company is implementing a new digital banking system to improve client interactions across all channels and expects to see more business banking improvements in early 2024.
Positive Outlook
- The company anticipates higher loan growth as it enters 2024, driven by success in attracting customer deposits.
- Premier's credit metrics remain steady, with delinquencies down.
- The business outlook across Premier's markets remains strong, yet conservative.
- The Federal Reserve's more paced approach toward interest rates has allowed the bank, and its clients, time to address the impacts of the higher rate environment.
- The new digital banking platform has transformed the mobile and online banking experience, bringing new features and services to clients.
Challenges Ahead
- Commercial line usage is drifting lower each month as clients utilize their excess cash to reduce line balances.
- Many companies are focusing on profit margins versus growth as they work through the uncertain economic environment.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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