Premier Financial (PFC) Q2 2024 earnings summary

Executive summary

• Q2 2024 net income was $16.2 million ($0.45 per share), down from $48.4 million ($1.35 per share) in Q2 2023, mainly due to the prior insurance agency sale and higher funding costs.

• Premier Financial announced a definitive merger agreement with Wesbanco, Inc., valued at $987 million, expected to close in Q1 2025.

• Excluding the insurance agency sale, Q2 2023 net income was $24.2 million ($0.68 per share).

• Total assets increased to $8.8 billion at June 30, 2024, from $8.6 billion at December 31, 2023.

Financial highlights

• Net interest income for Q2 2024 was $49.2 million, down from $54.0 million in Q2 2023; net interest margin declined to 2.46% from 2.72%.

• Non-interest income fell to $12.1 million in Q2 2024 from $53.3 million in Q2 2023, mainly due to the prior insurance agency sale.

• Non-interest expense decreased to $38.2 million in Q2 2024 from $44.5 million in Q2 2023.

• Net income for the first half of 2024 was $34.0 million ($0.95 per share), compared to $66.5 million ($1.86 per share) in the first half of 2023.

• Basic and diluted EPS for Q2 2024 were $0.45, compared to $1.35 in Q2 2023.

Outlook and guidance

• The merger with Wesbanco is expected to close in Q1 2025, subject to shareholder and regulatory approvals.

• Management continues to monitor goodwill for potential impairment due to market volatility and the pending merger.

• Forward-looking statements highlight risks related to merger integration, cost savings realization, and regulatory approvals.