Released on October 24, 2023, Premier Financial Corp (PFC, Financial)'s third-quarter earnings report shows a continued improvement in net income, net interest income, and net interest margin performance. The company reported a net income of $24.7 million ($0.69 per diluted common share), compared to $48.4 million ($1.35 per diluted common share) in the second quarter of 2023. The company also declared a dividend of $0.31 per share, up 3.3% from the prior year comparable period.
Financial Performance
PFC's regulatory capital ratios improved by 23 basis points from the prior quarter, with the CET1 ratio rising to 11.08%. The company also reported a deposit growth of $71 million, up 4.1% annualized, including $92 million for core customer deposits excluding brokered, up 5.6% annualized. The company's expenses were down 14.5%, or 6.8% excluding transaction costs, and the core efficiency ratio improved by 96 basis points from the prior quarter.
Loan Performance and Credit Quality
Loan delinquencies decreased by 9.5% from the prior quarter, marking two consecutive quarters of net recoveries. Non-performing assets totaled $39.9 million, or 0.47% of assets, at the end of Q3 2023, an increase from $37.6 million at the end of Q2 2023. The allowance for credit losses as a percentage of total loans was 1.14% at the end of Q3 2023, compared with 1.13% at the end of Q2 2023.
Investments and Future Outlook
PFC launched a new digital banking platform in October to improve clients' banking experience. The company remains committed to providing an exceptional customer experience and making investments that will best serve their clients today and in the future. PFC's CEO, Gary Small, stated, "We at Premier will continue to build capital and make investments designed to improve our business, our client experience, and benefit the communities we serve."
Summary
PFC's Q3 2023 earnings report shows a strong financial performance with increased net income, net interest income, and net interest margin. The company's focus on improving its business and client experience, along with its commitment to making strategic investments, positions it well for future growth.
