Premier Financial (PFC) Q3 2024 earnings summary

Executive summary

• Q3 2024 net income was $16.7 million, down from $24.7 million in Q3 2023; adjusted EPS was $0.54, up $0.09 sequentially, excluding $2.8 million pre-tax merger costs.

• Premier Financial announced a definitive merger agreement with Wesbanco, expected to close in Q1 2025; shareholders to receive 0.80 Wesbanco shares per Premier share and own about 30% of the combined company.

• Sale of First Insurance in June 2023 resulted in a $36.3 million pre-tax gain, impacting year-over-year comparisons.

• Declared a $0.31 per share dividend for Q3 2024, annual yield 5.2%, payable November 15, 2024.

Financial highlights

• Total assets increased to $8.7 billion at September 30, 2024, from $8.6 billion at year-end 2023.

• Net interest income for Q3 2024 was $50.2 million, down from $54.3 million year-over-year; net interest margin was 2.50%, down from 2.73% year-over-year but up sequentially.

• Non-interest income for Q3 2024 was $12.6 million, down 5.1% year-over-year, mainly due to lower mortgage banking income.

• Non-interest expense rose to $41.9 million in Q3 2024, primarily due to $2.8 million in merger-related transaction costs.

• Book value per share was $28.43 and tangible book value per share was $19.92, both up double digits annualized from Q2 2024.

Outlook and guidance

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

• No share repurchases are planned during the pendency of the merger.

• Forward-looking statements caution on integration, cost savings, and regulatory risks related to the merger.