Premier Financial announces first quarter results
DEFIANCE, Ohio — Premier Financial Corp. announced last week its net income for the first quarter of 2022 was down about $15 million from the same period of 2021, but commercial and consumer lending showed growth.
The year-over-year comparison was primarily impacted by fluctuations in the provision for credit losses, mortgage banking income, and securities gains and losses, a news release said.
The net income for the first quarter of 2022 was $26.4 million, or $0.73 per diluted common share, compared to $41 million, or $1.10 per diluted common share, for the first quarter of 2021.
“A very solid start for 2022 with excellent new business activity resulting in double digit core loan growth on an annualized basis,” Gary Small, president and CEO of Premier, said in the release. “Core commercial growth totaled 11% for the quarter and was the second consecutive quarter of core commercial growth in excess of 10%. Consumer lending was also on the move growing over 18% annualized for the quarter. We were pleased to see meaningful growth contributions from each of our nine markets.”
Gross loans receivable were $5.39 billion as of March 31, 2022, compared to $5.30 billion at Dec. 31, 2021. Loans related to the Paycheck Protection Program (“PPP”) were $18.7 million at March 31, 2022, compared to $58.9 million at Dec. 31, 2021. Gross loans receivable increased $92.2 million compared to the previous quarter despite a $40.2 million decrease in PPP loans. Excluding PPP, loans grew $132.4 million, or 10.1% annualized. Commercial loans excluding PPP increased $97.4 million from Dec. 31, 2021, or 11% annualized.
Net interest income of $57.9 million in the first quarter of 2022 was up from $56.5 million in the first quarter of 2021. The increase over the prior year’s first quarter was attributable to higher securities, non-PPP loan growth and a 13 basis point decrease in average cost of funds. Net interest margin was 3.44% for the first quarter of 2022, up from 3.41% in the fourth quarter of 2021, and up from 3.43% in the first quarter of 2021.
Premier’s noninterest income in the first quarter of 2022 was $16.9 million, compared with $26.3 million in the first quarter of 2021. Total mortgage banking income was $4.3 million in the first quarter of 2022, compared with $10.5 million in the first quarter of 2021. Mortgage gains were $2.5 million in the first quarter of 2022, compared with $5.6 million in the first quarter of 2021 with the change due to lower production, compressed margins, lower salable mix and less favorable marks on the in-process portfolio. Mortgage loan servicing revenue of $1.9 million in the first quarter of 2022 was consistent with $1.9 million in the first quarter of 2021.
Total non-interest expense was $41.3 million in the first quarter of 2022 compared with $38.8 million in the first quarter of 2021. Compensation and benefits were $25.5 million in the first quarter of 2022, compared to $22 million in the first quarter of 2021. The year-over-year increase was due to the combination of higher costs related to higher staffing levels for our growth initiatives, continued higher health care benefit costs and lower deferred costs related to lower residential mortgage production. All other expenses including occupancy, deposit insurance premiums, financial institution taxes, data processing, intangibles amortization and other costs decreased by $1 million compared to the first quarter of 2021.
The board of directors declared a quarterly cash dividend of $0.30 per common share payable May 13 to shareholders of record at the close of business on May 6. The dividend represents an annual dividend of 4.2% based on the Premier common stock closing price on April 25. Premier has approximately 35,552,000 common shares outstanding.
This article originally appeared on The Daily Telegram: Premier Financial announces first quarter results
