Business Wire | Oct 20, 2020 04:30PM EDT

Premier Financial Corp. Announces Strong Third Quarter Earnings and $0.22 Per Share Dividend

Oct. 20, 2020

DEFIANCE, Ohio--(BUSINESS WIRE)--Oct. 20, 2020--Premier Financial Corp. (Nasdaq: PFC) ("Premier" or the "Company") announced today third quarter results including solid core profitability. On a GAAP basis, net income for the third quarter of 2020 was $25.7 million, or $0.77 per diluted common share, compared to net income of $13.2 million, or $0.66 per diluted common share, for the third quarter of 2019. Net income for the nine months ended September 30, 2020, was $32.2 million, or $1.88 per diluted common share, compared to $36.9 million, or $1.85 per diluted common share, for the nine months ended September 30, 2019. The year-over-year comparisons are substantially impacted by the acquisition of United Community Financial Corp. ("UCFC") on January 31, 2020. The current year's results include the impact of $3.7 million and $17.3 million of acquisition-related charges for the three and nine months ended September 30, 2020, respectively, which had after-tax costs of $2.9 million and $14.0 million, respectively, or $0.08 and $0.39 per diluted common share, respectively. The three and nine months ended September 30, 2019, included $540,000 of acquisition-related charges, which had an after-tax cost of $427,000 or $0.02 per diluted common share. Additionally, the current year's nine month provision expense of $49.3 million included $25.9 million related to acquisition accounting for an after-tax cost of $20.5 million, or $0.58 per diluted common share. The first nine months of 2019 included a provision expense of $1.8 million, which had an after-tax cost of $1.4 million, or $0.09 per diluted common share, and no acquisition impact. Excluding the impact of the acquisition-related provision and charges, earnings for the three and nine months ended September 30, 2020, were $28.6 million and $66.8 million, respectively, or $0.77 and $1.88 per diluted common share, respectively.

"Efficiency and non-interest income growth are highlights of our continued strong financial performance for the third quarter," said Donald P. Hileman, CEO of Premier. "We are incredibly pleased with our ability to enhance capital via excess earnings and a very successful, low-cost sub-debt issuance."

Integration update

As previously announced, on January 31, 2020, the Company completed the strategic merger of equals with UCFC under which UCFC merged into Premier in a stock-for-stock transaction. The year-over-year comparison of Company results is substantially impacted by the UCFC merger, with 2020 third quarter and year-to-date results including three and eight months of operations from UCFC, respectively, compared to none for the comparable periods in 2019. In June, the Company launched its newly designed logo and brand identity for Premier Financial Corp. and Premier Bank. The new tagline "Powered by People" honors the longstanding commitment both organizations have to their customers, communities and employees. In July, Premier Bank successfully completed its core systems conversion. The integration of teams, systems and processes for the combined organization is progressing as expected.

"The entire Premier organization from client-facing to behind-the-scenes operational teams came together to put our clients first during this transition," said Gary M. Small, President of Premier. "By living our core values, we were able to preserve the best of two organizations under the Premier brand. As the final, conversion-related tasks conclude, we pivot our energy to enhancements of the client experience and top-tier performance."

Business Client Support Efforts

As a part of the CARES Act, the Small Business Administration created the Paycheck Protection Program ("PPP") to provide small businesses with loans as a direct incentive to keep their workers on the payroll. Premier Bank actively participated in PPP for clients and made 2,880 loans for a total of $443.3 million as of September 30, 2020. Total gross fees for these loans totaled $14.8 million. We recognized $2.7 million and $4.3 million as loan interest income during the three and nine months ended September 30, 2020, respectively.

Net interest income up compared to third quarter of 2019

Net interest income of $53.3 million in the third quarter of 2020 was up from $28.9 million in the third quarter of 2019. The increase over the prior year's third quarter was attributable to organic growth and three months of income from UCFC compared to none in 2019. Net interest margin was 3.47% for the third quarter of 2020, down from 3.51% in the second quarter of 2020, and down from 3.88% in the third quarter of 2019. Yield on interest earning assets decreased to 3.91% in the third quarter of 2020, down 13 basis points from 4.04% in the second quarter of 2020. Total cost of funds decreased eight basis points in the third quarter of 2020 to 0.47% from 0.55% in the second quarter of 2020 while the total cost of interest-bearing liabilities decreased nine basis points to 0.62% from 0.71%. The 2020 third quarter results include the impact of acquisition marks and related accretion for the UCFC acquisition. Interest income includes $1.1 million of accretion and interest expense includes $0.8 million of accretion, which combined added 13 basis points of net interest margin. The third quarter results also include the impact of PPP loans. Interest income includes $2.7 million on average balances of $440.4 million, which reduced net interest margin by seven basis points. Excluding the impact of acquisition marks and PPP loans, net interest margin would be 3.41% for the third quarter of 2020 compared to 3.34% for the second quarter of 2020 excluding the impact of acquisition marks and PPP loans.

"Our ability to manage funding costs and excess liquidity in the third quarter led to an improved core net interest margin," said Hileman. "Our strategies and teamwork are mitigating the impacts of the current down-rate environment."

Non-interest income up from third quarter of 2019

Premier's non-interest income in the third quarter of 2020 was $25.0 million compared with $11.8 million in the third quarter of 2019. Results for the third quarter of 2020 included three months of income from UCFC compared to none in 2019.

Mortgage banking income increased to $12.0 million in the third quarter of 2020 from $2.8 million in the third quarter of 2019. Gains from the sale of mortgage loans increased to $13.8 million in the third quarter of 2020 from $2.6 million in the third quarter of 2019. Mortgage loan servicing revenue increased to $1.9 million in the third quarter of 2020 from $1.0 million in the third quarter of 2019. Amortization of mortgage servicing rights increased to $2.0 million in the third quarter of 2020 from $0.6 million in the third quarter of 2019. Premier had a negative change in the valuation adjustment in mortgage servicing assets of $1.7 million in the third quarter of 2020 compared with a negative adjustment of $0.2 million in the third quarter of 2019. The year-over-year change for the third quarter is primarily due to increased prepayment speeds in the current down rate environment.

For the third quarter of 2020, service fees and other charges were $4.8 million, up from $4.0 million in the third quarter of 2019. Commissions from the sale of insurance products were $3.7 million, up from $3.3 million in the third quarter of 2019. Beginning with the second quarter of 2020, Premier began to report wealth management income, which represents trust income plus income for brokerage and financial advisory services that were previously reported in other non-interest income. Prior period amounts have been restated for consistency. Wealth management income was $1.5 million in the third quarter of 2020, up from $0.7 million in the third quarter of 2019.

Securities gains were $1.5 million in the third quarter of 2020, up from $11,000 in the third quarter of 2019. The Company early extinguished $30 million of fixed rate FHLB advances in the third quarter that had a weighted average rate of 2.0% and incurred a prepayment penalty of $1.4 million recognized in other expenses. The Company sold $55 million of MBS securities yielding approximately 1.80% at a gain of $1.4 million. The proceeds from the sales are being reinvested into securities yielding approximately 1.50% funded by overnight advances with a cost of approximately 20 basis points. The net effect of the transactions will increase pretax income approximately $425,000 over the next 12 months and enhance net interest margin by one basis point.

"We are pleased that the rate compression we are experiencing continues to be offset by our non-interest income growth," said Hileman. "While mortgage banking was again very strong with almost $14 million in gains this quarter, all business lines contributed to enhanced revenues."

Non-interest expenses up from third quarter of 2019

Total non-interest expense was $43.6 million in the third quarter of 2020, or $39.9 million excluding $3.7 million of acquisition related charges, up from $23.3 million in the third quarter of 2019, or $22.7 million excluding $540,000 of acquisition related charges. Results for the third quarter of 2020 included three months of expenses from UCFC compared to none in 2019. Compensation and benefits increased to $20.2 million in the third quarter of 2020, compared to $14.1 million in the third quarter of 2019. Occupancy expense was $4.0 million in the third quarter of 2020, up from $2.2 million in the third quarter of 2019. Data processing cost was $4.3 million in the third quarter of 2020, up from $1.7 million in the third quarter of 2019. Amortization of intangibles was $1.7 million in the third quarter of 2020, up from $0.3 million in the third quarter of 2019. Other non-interest expense was $7.1 million in the third quarter of 2020, or $5.7 million excluding the $1.4 million of FHLB prepayment penalties discussed above, up from $4.2 million in the third quarter of 2019.

FDIC insurance premiums were a $1.5 million expense in the third quarter of 2020, up from a $411,000 expense in the second quarter of 2020 and a $255,000 credit in the third quarter of 2019. The increase in expense from prior quarter is largely due to the impact of PPP and includes a year-to-date accrual estimate true-up. Although PPP loan balances are excludable from the asset-based component, they are not excludable from the leverage ratio component because the Company did not borrow from the PPP Liquidity Facility, and any loan funds that were in deposits would also increase the asset-based component. FDIC insurance premiums were a credit of $255,000 in the third quarter of 2019 due to the receipt of small bank assessment credits.

Credit quality

Non-performing loans totaled $48.3 million at September 30, 2020, an increase from $39.5 million at June 30, 2020, and an increase from $14.7 million at September 30, 2019, due to the UCFC merger. In addition, Premier had $0.5 million of OREO at September 30, 2020, compared to none at September 30, 2019. Accruing troubled debt restructured loans were $8.5 million at September 30, 2020, compared with $10.3 million at September 30, 2019.

On January 1, 2020, Premier adopted the Current Expected Credit Loss model of accounting for credit losses. This new GAAP model, which replaces the former incurred loss model, requires entities to estimate credit losses over the life of an asset or off-balance sheet exposure. Beginning with the third quarter of 2020, Premier began to report total provision for credit losses inclusive of amounts related to off-balance sheet unfunded commitments, which were previously reported in other non-interest expenses. Prior period amounts have been restated for consistency.

The 2020 third quarter results include net loan charge-offs of $3.3 million and a total provision expense of $3.7 million compared with net loan charge-offs of $11,000 and a total provision expense of $1.3 million for the same period in 2019. The allowance for credit loss on loans as a percentage of total loans was 1.63% at September 30, 2020, or 1.77% excluding PPP loans, compared with 1.62% at June 30, 2020, or 1.76% excluding PPP loans, and 1.13% at September 30, 2019. The year-over-year increase in the provision expense and allowance percentage is primarily attributable to the impact of the economic deterioration that began in the first quarter of 2020 as a result of the COVID-19 pandemic. As of September 30, 2020, Premier Bank had pandemic related deferrals for $434.6 million of commercial loans, down from $739.6 million at June 30, and $48.2 million of retail loans, down from $73.3 million at June 30.

Year-To-Date Results

For the nine-month period ended September 30, 2020, net income totaled $32.2 million, or $0.91 per diluted common share, compared to $36.9 million, or $1.85 per diluted common share for the nine months ended September 30, 2019. Results for the first nine months of 2020 included eight months of income and expenses from UCFC compared to none in 2019. The year-over-year comparison is also substantially impacted by the current year's provision expense of $49.3 million, which included $25.9 million related to acquisition accounting for an after-tax cost of $20.5 million, or $0.58 per diluted common share. The first nine months of 2019 included a total provision expense of $1.8 million, which had an after-tax cost of $1.4 million, or $0.07 per diluted common share, and no acquisition impact. Additionally, the current year's results include the impact of $17.3 million of acquisition-related charges, which had an after-tax cost of $14.0 million, or $0.39 per diluted common share. The first nine months of 2019 included $540,000 of acquisition related charges, which had an after tax cost of $427,000, or $0.02 per diluted common share. Excluding the impact of acquisition-related provision and charges, earnings for the first nine months of 2020 were $66.8 million, or $1.88 per diluted common share compared to $37.3 million or $1.87 per diluted share.

Net interest income was $153.0 million for the first nine months of 2020 compared with $104.8 million in the first nine months of 2019. Average interest-earning assets increased to $5.8 billion in the first nine months of 2020 compared to $2.92 billion in the first nine months of 2019. Net interest margin for the first nine months of 2020 was 3.55%, down 43 basis points from the 3.98% margin reported in the nine-month period ended September 30, 2019. The 2020 results include the impact of acquisition marks and related accretion for the UCFC acquisition. Interest income includes $5.5 million of accretion and interest expense includes $1.9 million of accretion, which combined added 16 basis points of net interest margin. The 2020 results also include the impact of PPP loans. Interest income includes $4.3 million on average balances of $246.9 million, which reduced net interest margin by five basis points. Excluding the impact of acquisition marks and PPP loans, net interest margin was 3.44% for the first nine months of 2020.

Non-interest income for the first nine months of 2020 was $62.0 million compared to $33.1 million during the same period of 2019. Service fees and other charges were $15.6 million for the first nine months of 2020, up from $10.3 million during the same period of 2019. Mortgage banking income was $22.8 million for the first nine months of 2020, up from $6.8 million during the same period of 2019. Insurance commissions were $12.9 million for the first nine months of 2020 compared with $11.0 million for the same period of 2019. Wealth management income was $4.4 million for the first nine months of 2020, up from $2.1 million during the same period of 2019.

Non-interest expense was $123.9 million for the first nine months of 2020, or $106.6 million excluding acquisition-related charges, up from $72.4 million, or $71.8 million excluding acquisition related charges, for the same period of 2019. Compensation and benefits expense was $57.3 million for the first nine months of 2020 compared with $42.5 million during the same period of 2019. Expenses also included increases in occupancy of $5.1 million, FDIC premiums of $2.1 million, data processing of $4.8 million, amortization of intangibles of $3.9 million and other expenses of $2.6 million. Additional detail regarding certain items impacting FDIC premiums and other expenses are discussed above.

Total assets at $6.97 billion

Total assets at September 30, 2020, were $6.97 billion compared to $7.01 billion at June 30, 2020, and $3.35 billion at September 30, 2019. Gross loans receivable (excluding loans held for sale) were $5.47 billion at September 30, 2020, compared to $5.46 billion at June 30, 2020, and $2.67 billion at September 30, 2019. At September 30, 2020, gross loans receivable grew $2.81 billion, or 105% from a year ago, including $2.30 billion from the UCFC merger and $0.51 billion organically, including $0.44 billion of PPP loans. Also, at September 30, 2020, goodwill and other intangible assets totaled $350.0 million compared to $351.7 million at June 30, 2020, and $104.1 million at September 30, 2019, with the increase attributable to the UCFC merger.

Total deposits at September 30, 2020, were $5.80 billion compared with $5.76 billion at June 30, 2020, and $2.76 billion at September 30, 2019. At September 30, 2020, total deposits grew $3.04 billion, or 110% from a year ago, including $2.08 billion from the UCFC merger and $0.96 billion organically.

Total stockholders' equity was $959.0 million at September 30, 2020, compared to $941.0 million at June 30, 2020, and $418.0 million at September 30, 2019. The increase in stockholders' equity from the prior year was due to net earnings and the UCFC merger, offset partially by the Company's repurchase of 430,000 common shares for $10.1 million during the first quarter of 2020. At September 30, 2020, 570,000 common shares remained available for repurchase under the Company's existing repurchase program.

Capital Issuance

On September 30, 2020, the Company completed the issuance of $50 million aggregate principal amount fixed-to-floating rate subordinated notes due 2030 (the "Notes") in a private offering exempt from the registration requirements under the Securities Act of 1933, as amended. The Notes carry a fixed rate of 4.00% for five years then a floating rate equal to the 3-month SOFR rate plus 388.5 basis points. The Company may, at its option, beginning September 30, 2025, redeem the Notes, in whole or in part, from time to time, subject to certain conditions. The net proceeds from the sale of the Notes are approximately $48.7 million, after deducting the estimated offering expenses. The Company intends to use the net proceeds from the offering of the Notes for general corporate purposes.

"We are proud of our successful capital issuance at the lowest rate this year for a BBB- Kroll-rated subordinated debt offering by a bank holding company," said Paul D. Nungester, CFO of Premier. "This enhancement to total capital at an efficient cost improves the Company's ability to serve as a source of strength for the bank during the current economic downturn."

Dividend to be paid November 20

The Board of Directors declared a quarterly cash dividend of $0.22 per common share payable November 20, 2020, to shareholders of record at the close of business on November 13, 2020. The dividend represents an annual dividend of 4.89 percent based on the Premier common stock closing price on October 19, 2020. Premier has approximately 37,297,217 common shares outstanding.

Conference call

Premier Financial Corp. will host a conference call at 11:00 a.m. ET on Wednesday, October 21, 2020, to discuss the earnings results and business trends. The conference call may be accessed by calling 1-877-444-1726. Internet access to the call is also available (in listen-only mode) at the following URL: https://services.choruscall.com/links/pfc201021.html. The replay of the conference call will be available at www.PremierFinCorp.com until October 20, 2021, at 9:00 a.m. ET.

About Premier Financial Corp.

Premier Financial Corp. (Nasdaq: PFC), headquartered in Defiance, Ohio, is the holding company for Premier Bank and First Insurance Group. Premier Bank, headquartered in Youngstown, Ohio, operates 78 branches, 12 loan offices and 3 wealth offices in Ohio, Michigan, Indiana, Pennsylvania and West Virginia (West Virginia office operates as "Home Savings Bank"). First Insurance Group is a full-service insurance agency with ten offices in Ohio including James & Sons Insurance in Youngstown, Ohio. For more information, visit the company's websites at PremierFinCorp.com.

Financial Statements and Highlights Follow-

Safe Harbor Statement

This news release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21 B of the Securities Exchange Act of 1934, as amended. Those statements may include, but are not limited to, all statements regarding intent, beliefs, expectations, projections, forecasts and plans of Premier Financial Corp. and its management, and specifically include statements regarding: changes in economic conditions; the nature, extent and timing of governmental actions and reforms; future movements of interest rates; the ability to benefit from a changing interest rate environment; the production levels of mortgage loan generation; the ability to continue to grow loans and deposits; the ability to sustain credit quality ratios at current or improved levels; continued strength in the market area for Premier Bank; the ability to sell real estate owned properties; and the ability to grow in existing and adjacent markets. These forward-looking statements involve numerous risks and uncertainties, including: impacts from the novel coronavirus (COVID-19) pandemic on our business, operations, customers and capital position; higher default rates on loans made to our customers related to COVID-19 and its impact on our customers' operations and financial condition; the impact of COVID-19 on local, national and global economic conditions; unexpected changes in interest rates or disruptions in the mortgage market related to COVID-19 or responses to the health crisis; the effects of various governmental responses to the COVID-19 pandemic; those inherent in general and local banking, insurance and mortgage conditions; competitive factors specific to markets in which Premier Financial Corp. and its subsidiaries operate; future interest rate levels; legislative and regulatory decisions or capital market conditions; and other risks and uncertainties detailed from time to time in our Securities and Exchange Commission (SEC) filings, including in our Annual Report on Form 10-K for the year ended December 31, 2019 and our Quarterly Report on Form 10-Q for the quarter ended June 30, 2020. One or more of these factors have affected or could in the future affect Premier's business and financial results in future periods and could cause actual results to differ materially from plans and projections. Therefore, there can be no assurances that the forward-looking statements included in this news release will prove to be accurate. In light of the significant uncertainties in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by Premier or any other persons, that our objectives and plans will be achieved. All forward-looking statements made in this news release are based on information presently available to the management of Premier and speak only as of the date on which they are made. We assume no obligation to update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as may be required by law. As required by U.S. GAAP, Premier will evaluate the impact of subsequent events through the issuance date of its September 30, 2020, consolidated financial statements as part of its Quarterly Report on Form 10-Q to be filed with the SEC. Accordingly, subsequent events could occur that may cause Premier to update its critical accounting estimates and to revise its financial information from that which is contained in this news release.

Non-GAAP Reporting Measures

We believe that net income, as defined by U.S. GAAP, is the most appropriate earnings measurement. However, we consider core net income and core pre-tax pre-provision income to be useful supplemental measures of our operating performance. We define core net income as net income excluding the after-tax impact of acquisition related charges. We define core pre-tax pre-provision income as pre-tax pre-provision income excluding the pre-tax impact of acquisition related charges. We believe that these metrics are useful supplemental measures of operating performance because investors and equity analysts may use these measures to compare the operating performance of the Company between periods or as compared to other financial institutions or other companies on a consistent basis without having to account for one-time acquisition related charges. Our supplemental reporting measures and similarly entitled financial measures are widely used by investors, equity and debt analysts and ratings agencies in the valuation, comparison, rating and investment recommendations of companies. Our management uses these financial measures to facilitate internal and external comparisons to historical operating results and in making operating decisions. Additionally, they are utilized by the Board of Directors to evaluate management. The supplemental reporting measures do not represent net income or cash flow provided from operating activities as determined in accordance with U.S. GAAP and should not be considered as alternative measures of profitability or liquidity. Finally, the supplemental reporting measures, as defined by us, may not be comparable to similarly entitled items reported by other financial institutions or other companies. Please see the exhibits for reconciliations of our supplemental reporting measures.

Consolidated Balance Sheets (Unaudited)

Premier Financial Corp. September 30, December 31,

(in thousands) 2020 2019

AssetsCash and cash equivalentsCash and amounts due from depository institutions $ 44,273 $ 46,254

Interest-bearing deposits 58,800 85,000

103,073 131,254

Available-for sale, carried at fair value 578,224 283,448

Trading securities, carried at fair value 1,014 -

Securities investments 579,238 283,448

Loans 5,470,548 2,777,564

Allowance for credit losses - loans (88,917 ) (31,243 )

Loans, net 5,381,631 2,746,321

Loans held for sale 208,054 18,008

Mortgage servicing rights 13,477 10,267

Accrued interest receivable 28,834 10,244

Federal Home Loan Bank stock 23,492 11,915

Bank Owned Life Insurance 143,939 75,544

Office properties and equipment 58,817 39,563

Real estate and other assets held for sale 521 100

Goodwill 317,948 100,069

Core deposit and other intangibles 32,005 3,772

Other assets 83,924 38,487

Total Assets $ 6,974,953 $ 3,468,992

Liabilities and Stockholders' EquityNon-interest-bearing deposits $ 1,436,807 $ 630,359

Interest-bearing deposits 4,358,950 2,239,966

Total deposits 5,795,757 2,870,325

Advances from FHLB and PPPLF 30,000 85,063

Notes payable and other interest-bearing - 2,999 liabilitiesSubordinated debentures 84,818 36,083

Advance payments by borrowers for tax and 18,985 5,491 insuranceReserve for credit losses - unfunded commitments 5,955 571

Other liabilities 80,413 42,293

Total Liabilities 6,015,928 3,042,825

Stockholders' EquityPreferred stock - -

Common stock, net 306 127

Additional paid-in-capital 689,736 161,955

Accumulated other comprehensive income (loss) 13,976 4,595

Retained earnings 333,772 329,175

Treasury stock, at cost (78,765 ) (69,685 )

Total stockholders' equity 959,025 426,167

Total Liabilities and Stockholders' Equity $ 6,974,953 $ 3,468,992

Consolidated Statements of Income (Unaudited)Premier Financial Corp.Three Months Ended

Nine Months Ended

September 30,

September 30,

(in thousands, except per share amounts)2020

2019

2020

2019

Interest Income:Loans$

57,134

$

33,284

$

167,390

$

97,158

Investment securities2,848

1,952

8,489

6,295

Interest-bearing deposits82

312

391

857

FHLB stock dividends95

135

861

533

Total interest income60,159

35,683

177,131

104,843

Interest Expense:Deposits6,555

6,029

21,761

16,615

FHLB advances and other168

431

1,690

1,011

Subordinated debentures158

329

610

1,043

Notes Payable7

2

32

23

Total interest expense6,888

6,791

24,093

18,692

Net interest income53,271

28,892

153,038

86,151

Provision for credit losses - loans3,658

1,327

49,312

1,821

Provision (benefit) for credit losses - unfunded commitments(864

)

(62

)

1,702

(60

)

Total provision for credit losses2,794

1,265

51,014

1,761

Net interest income after provision for loan losses50,477

27,627

102,024

84,390

Non-interest Income:Service fees and other charges4,805

4,027

15,601

10,335

Mortgage banking income12,047

2,822

22,763

6,800

Gain on sale of non-mortgage loans-

105

234

215

Gain (loss) on sale of available for sale securities1,466

11

1,464

11

Gain (loss) on trading securities14

-

14

-

Insurance commissions3,715

3,263

12,875

10,994

Wealth management income1,458

705

4,351

2,063

Income from Bank Owned Life Insurance841

783

2,460

1,702

Other non-interest income654

126

2,251

1,021

Total Non-interest Income25,000

11,842

62,013

33,141

Non-interest Expense:Compensation and benefits20,172

14,061

57,331

42,544

Occupancy3,989

2,206

11,848

6,751

FDIC insurance premium1,469

(255

)

2,372

276

Financial institutions tax1,116

555

3,066

1,667

Data processing4,289

1,728

11,135

6,292

Amortization of intangibles1,726

264

4,781

839

Acquisition related charges3,711

540

17,295

540

Other non-interest expense7,091

4,166

16,028

13,455

Total Non-interest Expense43,563

23,265

123,856

72,364

Income before income taxes31,914

16,204

40,181

45,167

Income tax expense6,259

3,033

7,951

8,315

Net Income$

25,655

$

13,171

$

32,230

$

36,852

Earnings per common share:Basic$

0.69

$

0.67

$

0.91

$

1.86

Diluted$

0.69

$

0.66

$

0.91

$

1.85

Average Shares Outstanding:Basic37,297

19,790

35,423

19,862

Diluted37,334

19,875

35,482

19,943

Consolidated Statements of Income (Unaudited)Premier Financial Corp. Three Months Ended Nine Months Ended

September 30, September 30,

(in thousands, except per 2020 2019 2020 2019share amounts)Interest Income:Loans $ 57,134 $ 33,284 $ 167,390 $ 97,158

Investment securities 2,848 1,952 8,489 6,295

Interest-bearing deposits 82 312 391 857

FHLB stock dividends 95 135 861 533

Total interest income 60,159 35,683 177,131 104,843

Interest Expense:Deposits 6,555 6,029 21,761 16,615

FHLB advances and other 168 431 1,690 1,011

Subordinated debentures 158 329 610 1,043

Notes Payable 7 2 32 23

Total interest expense 6,888 6,791 24,093 18,692

Net interest income 53,271 28,892 153,038 86,151

Provision for credit losses - 3,658 1,327 49,312 1,821 loansProvision (benefit) for (864 ) (62 ) 1,702 (60 )credit losses - unfundedcommitmentsTotal provision for credit 2,794 1,265 51,014 1,761 lossesNet interest income after 50,477 27,627 102,024 84,390 provision for loan lossesNon-interest Income:Service fees and other 4,805 4,027 15,601 10,335 chargesMortgage banking income 12,047 2,822 22,763 6,800

Gain on sale of non-mortgage - 105 234 215 loansGain (loss) on sale of 1,466 11 1,464 11 available for sale securitiesGain (loss) on trading 14 - 14 - securitiesInsurance commissions 3,715 3,263 12,875 10,994

Wealth management income 1,458 705 4,351 2,063

Income from Bank Owned Life 841 783 2,460 1,702 InsuranceOther non-interest income 654 126 2,251 1,021

Total Non-interest Income 25,000 11,842 62,013 33,141

Non-interest Expense:Compensation and benefits 20,172 14,061 57,331 42,544

Occupancy 3,989 2,206 11,848 6,751

FDIC insurance premium 1,469 (255 ) 2,372 276

Financial institutions tax 1,116 555 3,066 1,667

Data processing 4,289 1,728 11,135 6,292

Amortization of intangibles 1,726 264 4,781 839

Acquisition related charges 3,711 540 17,295 540

Other non-interest expense 7,091 4,166 16,028 13,455

Total Non-interest Expense 43,563 23,265 123,856 72,364

Income before income taxes 31,914 16,204 40,181 45,167

Income tax expense 6,259 3,033 7,951 8,315

Net Income $ 25,655 $ 13,171 $ 32,230 $ 36,852

Earnings per common share:Basic $ 0.69 $ 0.67 $ 0.91 $ 1.86

Diluted $ 0.69 $ 0.66 $ 0.91 $ 1.85

Average Shares Outstanding:Basic 37,297 19,790 35,423 19,862

Diluted 37,334 19,875 35,482 19,943

Financial Summary and Comparison (Unaudited)Premier Financial Corp.Three Months Ended

Nine Months Ended

September 30,

September 30,

(dollars in thousands, except per share data)2020

2019

% change

2020

2019

% change

Summary of OperationsTax-equivalent interest income (2)$

60,418

$

35,922

68.2

%

$

177,898

$

105,578

68.5

%

Interest expense6,888

6,791

1.4

24,093

18,692

28.9

Tax-equivalent net interest income (2)53,530

29,131

83.8

153,805

86,886

77.0

Provision for credit losses2,794

1,265

120.9

51,014

1,761

2,796.9

Core provision for credit losses (4)2,794

1,265

120.9

22,089

1,761

1,154.3

Investment securities gains (losses)1,480

11

NM

1,478

11

NM

Non-interest income (excluding securities gains/losses)23,520

11,831

98.8

60,535

33,130

82.7

Non-interest expense43,563

23,265

87.2

123,856

72,364

71.2

Core non-interest expense (4)38,445

22,724

69.2

69,269

71,824

(3.6

)

Income tax expense6,259

3,033

106.4

7,951

8,315

(4.4

)

Net income25,655

13,171

94.8

32,230

36,852

(12.5

)

Core net income (4)28,587

13,598

110.2

36,057

37,279

(3.3

)

Tax equivalent adjustment (2)259

239

8.4

767

735

4.4

At Period EndAssets6,974,953

3,350,724

108.2

Earning assets6,340,132

3,045,659

108.2

Loans5,470,548

2,665,300

105.3

Allowance for credit losses - loans88,917

30,250

193.9

Deposits5,795,757

2,760,615

109.9

Stockholders' equity959,025

418,046

129.4

Average BalancesAssets6,935,783

3,303,013

110.0

6,437,886

3,236,674

98.9

Earning assets6,211,267

2,985,498

108.0

5,787,134

2,923,809

97.9

Loans5,555,621

2,624,314

111.7

5,095,167

2,567,646

98.4

Deposits and interest-bearing liabilities5,901,652

2,843,079

107.6

5,457,179

2,788,974

95.7

Deposits5,738,006

2,718,632

111.1

5,162,952

2,679,616

92.7

Stockholders' equity927,506

411,041

125.6

881,932

401,597

119.6

Stockholders' equity / assets13.37

%

12.44

%

7.5

13.70

%

12.41

%

10.4

Per Common Share DataNet Income (Loss)Basic$

0.69

$

0.67

3.0

$

0.91

$

1.86

(51.1

)

Diluted0.69

0.66

4.5

0.91

1.85

(50.8

)

Core diluted (4)0.77

0.68

13.2

$

1.88

1.87

0.5

Dividends0.22

0.19

15.8

0.66

0.57

15.8

Market Value:High$

21.24

$

29.44

(27.9

)

$

32.05

$

31.30

2.4

Low14.74

25.50

(42.2

)

10.98

24.12

(54.5

)

Close15.58

28.97

(46.2

)

15.58

28.97

(46.2

)

Common Book Value25.71

21.19

21.3

25.71

21.19

21.3

Tangible Common Book Value (1)16.33

15.91

2.6

16.33

15.91

2.6

Shares outstanding, end of period (000s)37,297

19,729

89.0

37,297

19,729

89.0

Performance Ratios (annualized)Tax-equivalent net interest margin (2)3.47

%

3.88

%

(10.6

)

3.55

%

3.98

%

(10.8

)

Return on average assets1.49

%

1.58

%

(5.8

)

0.67

%

1.52

%

(56.0

)

Core return on average assets (4)1.64

%

1.63

%

0.4

0.75

%

1.54

%

(51.6

)

Return on average equity11.12

%

12.71

%

(12.5

)

4.88

%

12.27

%

(60.2

)

Core return on average equity (4)12.26

%

13.12

%

(6.6

)

5.46

%

12.44

%

(56.1

)

Efficiency ratio (3)56.54

%

56.79

%

(0.4

)

57.78

%

60.30

%

(4.2

)

Core efficiency ratio (4)49.90

%

55.48

%

(10.1

)

49.06

%

59.85

%

(18.0

)

Effective tax rate19.61

%

18.72

%

4.8

19.79

%

18.41

%

7.5

Dividend payout ratio (core)28.57

%

27.94

%

2.3

35.11

%

30.48

%

15.2

Financial Summary and Comparison (Unaudited)Premier Financial Corp. Three Months Ended Nine Months Ended

September 30, September 30,

(dollars in %thousands, 2020 2019 change 2020 2019 % changeexcept per sharedata)Summary ofOperations Tax-equivalent $ 60,418 $ 35,922 68.2 % $ 177,898 $ 105,578 68.5 %interest income(2)Interest expense 6,888 6,791 1.4 24,093 18,692 28.9

Tax-equivalent 53,530 29,131 83.8 153,805 86,886 77.0 net interestincome (2)Provision for 2,794 1,265 120.9 51,014 1,761 2,796.9 credit lossesCore provision 2,794 1,265 120.9 22,089 1,761 1,154.3 for creditlosses (4)Investment 1,480 11 NM 1,478 11 NM securities gains(losses)Non-interestincome 23,520 11,831 98.8 60,535 33,130 82.7 (excludingsecurities gains/losses)Non-interest 43,563 23,265 87.2 123,856 72,364 71.2 expenseCore 38,445 22,724 69.2 69,269 71,824 (3.6 )non-interestexpense (4)Income tax 6,259 3,033 106.4 7,951 8,315 (4.4 )expenseNet income 25,655 13,171 94.8 32,230 36,852 (12.5 )

Core net income 28,587 13,598 110.2 36,057 37,279 (3.3 )(4)Tax equivalent 259 239 8.4 767 735 4.4 adjustment (2)At Period EndAssets 6,974,953 3,350,724 108.2

Earning assets 6,340,132 3,045,659 108.2

Loans 5,470,548 2,665,300 105.3

Allowance for 88,917 30,250 193.9 credit losses -loansDeposits 5,795,757 2,760,615 109.9

Stockholders' 959,025 418,046 129.4 equityAverage BalancesAssets 6,935,783 3,303,013 110.0 6,437,886 3,236,674 98.9

Earning assets 6,211,267 2,985,498 108.0 5,787,134 2,923,809 97.9

Loans 5,555,621 2,624,314 111.7 5,095,167 2,567,646 98.4

Deposits and 5,901,652 2,843,079 107.6 5,457,179 2,788,974 95.7 interest-bearingliabilitiesDeposits 5,738,006 2,718,632 111.1 5,162,952 2,679,616 92.7

Stockholders' 927,506 411,041 125.6 881,932 401,597 119.6 equityStockholders' 13.37 % 12.44 % 7.5 13.70 % 12.41 % 10.4 equity / assetsPer Common ShareDataNet Income(Loss)Basic $ 0.69 $ 0.67 3.0 $ 0.91 $ 1.86 (51.1 )

Diluted 0.69 0.66 4.5 0.91 1.85 (50.8 )

Core diluted (4) 0.77 0.68 13.2 $ 1.88 1.87 0.5

Dividends 0.22 0.19 15.8 0.66 0.57 15.8

Market Value:High $ 21.24 $ 29.44 (27.9 ) $ 32.05 $ 31.30 2.4

Low 14.74 25.50 (42.2 ) 10.98 24.12 (54.5 )

Close 15.58 28.97 (46.2 ) 15.58 28.97 (46.2 )

Common Book 25.71 21.19 21.3 25.71 21.19 21.3 ValueTangible Common 16.33 15.91 2.6 16.33 15.91 2.6 Book Value (1)Shares 37,297 19,729 89.0 37,297 19,729 89.0 outstanding, endof period (000s)PerformanceRatios(annualized)Tax-equivalent 3.47 % 3.88 % (10.6 ) 3.55 % 3.98 % (10.8 )net interestmargin (2)Return on 1.49 % 1.58 % (5.8 ) 0.67 % 1.52 % (56.0 )average assetsCore return on 1.64 % 1.63 % 0.4 0.75 % 1.54 % (51.6 )average assets(4)Return on 11.12 % 12.71 % (12.5 ) 4.88 % 12.27 % (60.2 )average equityCore return on 12.26 % 13.12 % (6.6 ) 5.46 % 12.44 % (56.1 )average equity(4)Efficiency ratio 56.54 % 56.79 % (0.4 ) 57.78 % 60.30 % (4.2 )(3)Core efficiency 49.90 % 55.48 % (10.1 ) 49.06 % 59.85 % (18.0 )ratio (4)Effective tax 19.61 % 18.72 % 4.8 19.79 % 18.41 % 7.5 rateDividend payout 28.57 % 27.94 % 2.3 35.11 % 30.48 % 15.2 ratio (core)Note: 2020 current quarter and year-to-date results include three and five months of operations from UCFC, respectively, compared to none for comparable periods in 2019.(1) Tangible common book value = total stockholders' equity less the sum of goodwill, core deposit and other intangibles, and preferred stock divided by shares outstanding at the end of the period.(2) Interest income on tax-exempt securities and loans has been adjusted to a tax-equivalent basis using the statutory federal income tax rate of 21%.(3) Efficiency ratio = Non-interest expense divided by sum of tax-equivalent net interest income plus non-interest income, excluding securities gains or losses, net.(4) Core items exclude the impact of acquisition related provision ("CECL double-dip") and other charges. See non-GAAP reconciliations.NM Percentage change not meaningfulNote: 2020 current quarter and year-to-date results include three and fivemonths of operations from UCFC, respectively, compared to none for comparableperiods in 2019.(1) Tangible common book value = total stockholders' equity less the sum ofgoodwill, core deposit and other intangibles, and preferred stock divided byshares outstanding at the end of the period.(2) Interest income on tax-exempt securities and loans has been adjusted to atax-equivalent basis using the statutory federal income tax rate of 21%.(3) Efficiency ratio = Non-interest expense divided by sum of tax-equivalentnet interest income plus non-interest income, excluding securities gains orlosses, net.(4) Core items exclude the impact of acquisition related provision ("CECLdouble-dip") and other charges. See non-GAAP reconciliations.NM Percentage change not meaningfulPremier Financial Corp.(dollars in thousands)Three Months Ended

Nine Months Ended

September 30,

September 30,

Mortgage Banking2020

2019

2020

2019

Revenue from sales and servicing of mortgage loans:Gain from sale of mortgage loans$

13,781

$

2,596

$

30,213

$

5,672

Mortgage loan servicing revenue (expense):Mortgage loan servicing revenue1,898

960

5,379

2,842

Amortization of mortgage servicing rights(1,959

)

(579

)

(5,302

)

(1,256

)

Mortgage servicing rights valuation adjustments(1,673

)

(155

)

(7,527

)

(458

)

(1,734

)

226

(7,450

)

1,128

Total revenue from sale and servicing of mortgage loans$

12,047

$

2,822

$

22,763

$

6,800

Mortgage servicing rights:Balance at beginning of period$

21,034

$

10,458

$

10,801

$

10,419

Loans sold, servicing retained2,463

738

6,292

1,454

Mortgage servicing rights acquired-

-

9,747

-

Amortization(1,959

)

(579

)

(5,302

)

(1,256

)

Carrying value before valuation allowance at end of period21,538

10,617

21,538

10,617

Valuation allowance:Balance at beginning of period(6,388

)

(603

)

(534

)

(300

)

Impairment recovery (charges)(1,673

)

(155

)

(7,527

)

(458

)

Balance at end of period(8,061

)

(758

)

(8,061

)

(758

)

Net carrying value at end of period$

13,477

$

9,859

$

13,477

$

9,859

Goodwill and Purchase Price AccountingDeal Value:Shares issued (000s)17,926

1/31/20 Price$

29.39

Stock value526,850

Fair value of options exchanged461

Cash in lieu of fractional shares132

Total value$

527,443

Allocation:Cash and cash equivalents$

52,580

Securities available-for sale262,753

(1)

Net loans, including loans held for sale and allowance2,340,701

(2)

Federal Home Loan Bank stock12,753

Office properties and equipment20,253

(3)

Core deposit and other intangibles33,014

(4)

Bank Owned Life Insurance65,934

Mortgage servicing rights9,747

(5)

Other assets35,423

Non-interest-bearing deposits(430,921

)

Interest-bearing deposits(1,651,669

)

(6)

Advances from Federal Home Loan Bank(381,000

)

Other liabilities(60,004

)

Net assets309,564

Goodwill217,879

Total value$

527,443

Premier Financial Corp.(dollars in thousands) Three Months Ended Nine Months Ended

September 30, September 30,

Mortgage Banking 2020 2019 2020 2019

Revenue from sales andservicing of mortgageloans:Gain from sale of $ 13,781 $ 2,596 $ 30,213 $ 5,672 mortgage loansMortgage loan servicingrevenue (expense):Mortgage loan servicing 1,898 960 5,379 2,842 revenueAmortization of mortgage (1,959 ) (579 ) (5,302 ) (1,256 )servicing rightsMortgage servicing rights (1,673 ) (155 ) (7,527 ) (458 )valuation adjustments (1,734 ) 226 (7,450 ) 1,128

Total revenue from sale $ 12,047 $ 2,822 $ 22,763 $ 6,800 and servicing of mortgageloans Mortgage servicingrights:Balance at beginning of $ 21,034 $ 10,458 $ 10,801 $ 10,419 periodLoans sold, servicing 2,463 738 6,292 1,454 retainedMortgage servicing rights - - 9,747 - acquiredAmortization (1,959 ) (579 ) (5,302 ) (1,256 )

Carrying value before 21,538 10,617 21,538 10,617 valuation allowance atend of periodValuation allowance:Balance at beginning of (6,388 ) (603 ) (534 ) (300 )periodImpairment recovery (1,673 ) (155 ) (7,527 ) (458 )(charges)Balance at end of period (8,061 ) (758 ) (8,061 ) (758 )

Net carrying value at end $ 13,477 $ 9,859 $ 13,477 $ 9,859 of period Goodwill and PurchasePrice AccountingDeal Value:Shares issued (000s) 17,926

1/31/20 Price $ 29.39

Stock value 526,850

Fair value of options 461 exchangedCash in lieu of 132 fractional sharesTotal value $ 527,443

Allocation:Cash and cash equivalents $ 52,580

Securities available-for 262,753 (1)saleNet loans, including 2,340,701 (2)loans held for sale andallowanceFederal Home Loan Bank 12,753 stockOffice properties and 20,253 (3)equipmentCore deposit and other 33,014 (4)intangiblesBank Owned Life Insurance 65,934

Mortgage servicing rights 9,747 (5)

Other assets 35,423

Non-interest-bearing (430,921 )depositsInterest-bearing deposits (1,651,669 ) (6)

Advances from Federal (381,000 )Home Loan BankOther liabilities (60,004 )

Net assets 309,564

Goodwill 217,879

Total value $ 527,443

Note: 2020 current quarter and year-to-date results include three and eight months of operations from UCFC, respectively, compared to none for comparable periods in 2019.(1) Includes $13.8 million of accumulated losses to be amortized against interest income over ~7 years.(2) Includes $27.2 million non-PCD credit mark down to be accreted into interest income over ~5 years, $8.8 million total rate mark up to be amortized against interest income over ~5 years, $19.1 million elimination of allowance and $7.7 million PCD credit mark addition to allowance.(3) Includes $2.1 million mark down that reduces future depreciation.(4) Includes $29.3 million of core deposit intangible to be amortized to expense using sum-of-the-years digits over 10 years and $3.7 million of insurance/trust/wealth intangibles to be amortized to expense over ~10 years.(5) Includes $3.0 million mark up to be amortized against mortgage banking income over ~8.5 years.(6) Includes $7.1 million rate mark up on time-based deposits to be accreted against interest expense over ~2 years based on maturities.Note: 2020 current quarter and year-to-date results include three and eightmonths of operations from UCFC, respectively, compared to none for comparableperiods in 2019.(1) Includes $13.8 million of accumulated losses to be amortized againstinterest income over ~7 years.(2) Includes $27.2 million non-PCD credit mark down to be accreted intointerest income over ~5 years, $8.8 million total rate mark up to beamortized against interest income over ~5 years, $19.1 million elimination ofallowance and $7.7 million PCD credit mark addition to allowance.(3) Includes $2.1 million mark down that reduces future depreciation.(4) Includes $29.3 million of core deposit intangible to be amortized toexpense using sum-of-the-years digits over 10 years and $3.7 million ofinsurance/trust/wealth intangibles to be amortized to expense over ~10 years.(5) Includes $3.0 million mark up to be amortized against mortgage bankingincome over ~8.5 years.(6) Includes $7.1 million rate mark up on time-based deposits to be accretedagainst interest expense over ~2 years based on maturities.Yield AnalysisPremier Financial Corp.Three Months Ended September 30,

(dollars in thousands)

2020

2019

Average

Yield

Average

Yield

Balance

Interest(1)

Rate(2)

Balance

Interest(1)

Rate(2)

Interest-earning assets:Loans receivable$

5,555,621

$

57,158

4.14

%

$

2,624,314

$

33,306

5.04

%

Securities552,458

3,083

2.24

%

(3)

293,876

2,169

2.99

%

(3)

Interest Bearing Deposits65,551

82

0.50

%

55,393

312

2.23

%

FHLB stock37,637

95

1.02

%

11,915

135

4.50

%

Total interest-earning assets6,211,267

60,418

3.91

%

2,985,498

35,922

4.78

%

Non-interest-earning assets724,516

317,515

Total assets$

6,935,783

$

3,303,013

Deposits and Interest-bearing liabilities:Interest bearing deposits$

4,285,287

$

6,555

0.62

%

$

2,129,306

$

6,029

1.12

%

FHLB advances and other120,417

168

0.56

%

85,339

431

2.00

%

Subordinated debentures36,613

158

1.74

%

36,083

329

3.62

%

Notes payable6,616

7

0.43

%

3,025

2

0.26

%

Total interest-bearing liabilities4,448,933

6,888

0.62

%

2,253,753

6,791

1.20

%

Non-interest bearing deposits1,452,719

-

-

589,326

-

-

Total including non-interest-bearing deposits5,901,652

6,888

0.47

%

2,843,079

6,791

0.95

%

Other non-interest-bearing liabilities106,625

48,893

Total liabilities6,008,277

2,891,972

Stockholders' equity927,506

411,041

Total liabilities and stockholders' equity$

6,935,783

$

3,303,013

Net interest income; interest rate spread$

53,530

3.29

%

$

29,131

3.58

%

Net interest margin (4)3.47

%

3.88

%

Average interest-earning assets to average interest bearing liabilities140

%

132

%

Nine Months Ended September 30,

2020

2019

Average

Yield

Average

Yield

Balance

Interest(1)

Rate(2)

Balance

Interest(1)

Rate(2)

Interest-earning assets:Loans receivable$

5,095,167

$

167,463

4.38

%

$

2,567,646

$

97,227

5.06

%

Securities514,979

9,183

2.38

%

(3)

296,312

6,961

3.14

%

(3)

Interest Bearing Deposits131,384

391

0.40

%

47,360

857

2.42

%

FHLB stock45,604

861

2.52

%

12,491

533

5.71

%

Total interest-earning assets5,787,134

177,898

4.09

%

2,923,809

105,578

4.83

%

Non-interest-earning assets650,752

312,865

Total assets$

6,437,886

$

3,236,674

Deposits and Interest-bearing liabilities:Interest bearing deposits$

3,929,881

$

21,761

0.74

%

$

2,094,693

$

16,615

1.06

%

FHLB advances and other249,889

1,690

0.90

%

68,920

1,011

1.96

%

Subordinated debentures36,261

610

2.24

%

36,083

1,043

3.86

%

Notes payable8,077

32

0.53

%

4,355

23

0.71

%

Total interest-bearing liabilities4,224,108

24,093

0.76

%

2,204,051

18,692

1.13

%

Non-interest bearing deposits1,233,071

-

-

584,923

-

-

Total including non-interest-bearing deposits5,457,179

24,093

0.59

%

2,788,974

18,692

0.90

%

Other non-interest-bearing liabilities98,775

46,103

Total liabilities5,555,954

2,835,077

Stockholders' equity881,932

401,597

Total liabilities and stockholders' equity$

6,437,886

$

3,236,674

Net interest income; interest rate spread$

153,805

3.33

%

$

86,886

3.93

%

Net interest margin (4)3.55

%

3.98

%

Average interest-earning assets to average interest bearing liabilities137

%

133

%

Yield AnalysisPremier Financial Corp. Three Months Ended September 30,

(dollars in thousands)

2020 2019

Average Yield Average Yield

Balance Interest Rate Balance Interest Rate (1) (2) (1) (2)

Interest-earningassets:Loans receivable $ 5,555,621 $ 57,158 4.14 % $ 2,624,314 $ 33,306 5.04 %

Securities 552,458 3,083 2.24 % (3) 293,876 2,169 2.99 % (3)

Interest Bearing 65,551 82 0.50 % 55,393 312 2.23 %DepositsFHLB stock 37,637 95 1.02 % 11,915 135 4.50 %

Total 6,211,267 60,418 3.91 % 2,985,498 35,922 4.78 %interest-earningassetsNon-interest-earning 724,516 317,515assetsTotal assets $ 6,935,783 $ 3,303,013

Deposits andInterest-bearingliabilities:Interest bearing $ 4,285,287 $ 6,555 0.62 % $ 2,129,306 $ 6,029 1.12 %depositsFHLB advances and 120,417 168 0.56 % 85,339 431 2.00 %otherSubordinated 36,613 158 1.74 % 36,083 329 3.62 %debenturesNotes payable 6,616 7 0.43 % 3,025 2 0.26 %

Total 4,448,933 6,888 0.62 % 2,253,753 6,791 1.20 %interest-bearingliabilitiesNon-interest bearing 1,452,719 - - 589,326 - - depositsTotal including 5,901,652 6,888 0.47 % 2,843,079 6,791 0.95 %non-interest-bearingdepositsOther 106,625 48,893non-interest-bearingliabilitiesTotal liabilities 6,008,277 2,891,972

Stockholders' equity 927,506 411,041

Total liabilities $ 6,935,783 $ 3,303,013and stockholders'equityNet interest income; $ 53,530 3.29 % $ 29,131 3.58 %interest rate spreadNet interest margin 3.47 % 3.88 %(4)Averageinterest-earning 140 % 132 %assets to averageinterest bearingliabilities Nine Months Ended September 30,

2020 2019

Average Yield Average Yield

Balance Interest Rate Balance Interest Rate (1) (2) (1) (2)

Interest-earningassets:Loans receivable $ 5,095,167 $ 167,463 4.38 % $ 2,567,646 $ 97,227 5.06 %

Securities 514,979 9,183 2.38 % (3) 296,312 6,961 3.14 % (3)

Interest Bearing 131,384 391 0.40 % 47,360 857 2.42 %DepositsFHLB stock 45,604 861 2.52 % 12,491 533 5.71 %

Total 5,787,134 177,898 4.09 % 2,923,809 105,578 4.83 %interest-earningassetsNon-interest-earning 650,752 312,865assetsTotal assets $ 6,437,886 $ 3,236,674

Deposits andInterest-bearingliabilities:Interest bearing $ 3,929,881 $ 21,761 0.74 % $ 2,094,693 $ 16,615 1.06 %depositsFHLB advances and 249,889 1,690 0.90 % 68,920 1,011 1.96 %otherSubordinated 36,261 610 2.24 % 36,083 1,043 3.86 %debenturesNotes payable 8,077 32 0.53 % 4,355 23 0.71 %

Total 4,224,108 24,093 0.76 % 2,204,051 18,692 1.13 %interest-bearingliabilitiesNon-interest bearing 1,233,071 - - 584,923 - - depositsTotal including 5,457,179 24,093 0.59 % 2,788,974 18,692 0.90 %non-interest-bearingdepositsOther 98,775 46,103non-interest-bearingliabilitiesTotal liabilities 5,555,954 2,835,077

Stockholders' equity 881,932 401,597

Total liabilities $ 6,437,886 $ 3,236,674and stockholders'equityNet interest income; $ 153,805 3.33 % $ 86,886 3.93 %interest rate spreadNet interest margin 3.55 % 3.98 %(4)Averageinterest-earning 137 % 133 %assets to averageinterest bearingliabilitiesNote: 2020 current quarter and year-to-date results include three and five months of operations from UCFC, respectively, compared to none for comparable periods in 2019.(1) Interest on certain tax exempt loans and securities is not taxable for Federal income tax purposes. In order to compare the tax-exempt yields on these assets to taxable yields, the interest earned on these assets is adjusted to a pre-tax equivalent amount based on the marginal corporate federal income tax rate of 21%.(2) Annualized.(3) Securities yield = annualized interest income divided by the average balance of securities, excluding average unrealized gains/losses.(4) Net interest margin is tax equivalent net interest income divided by average interest-earning assets.Note: 2020 current quarter and year-to-date results include three and fivemonths of operations from UCFC, respectively, compared to none for comparableperiods in 2019.(1) Interest on certain tax exempt loans and securities is not taxable forFederal income tax purposes. In order to compare the tax-exempt yields on theseassets to taxable yields, the interest earned on these assets is adjusted to apre-tax equivalent amount based on the marginal corporate federal income taxrate of 21%.(2) Annualized.(3) Securities yield = annualized interest income divided by the averagebalance of securities, excluding average unrealized gains/losses.(4) Net interest margin is tax equivalent net interest income divided byaverage interest-earning assets.Selected Quarterly InformationPremier Financial Corp.(dollars in thousands, except per share data)3rd Qtr 2020

2nd Qtr 2020

1st Qtr 2020

4th Qtr 2019

3rd Qtr 2019

Summary of OperationsTax-equivalent interest income (1)$

60,418

$

62,705

$

54,773

$

36,473

$

35,922

Interest expense6,888

8,145

9,059

6,743

6,791

Tax-equivalent net interest income (1)53,530

54,560

45,714

29,730

29,131

Provision for credit losses2,794

2,975

45,244

1,123

1,266

Core provision for credit losses (3)2,794

2,975

19,295

1,123

1,266

Investment securities gains (losses)1,480

(2

)

-

13

11

Non-interest income (excluding securities gains/losses)23,520

23,017

13,999

11,803

11,831

Non-interest expense43,563

37,984

42,310

24,721

23,264

Core non-interest expense (3)38,445

35,885

30,824

23,839

22,724

Income tax expense (benefit)6,259

7,303

(5,610

)

2,953

3,033

Net income (loss)25,655

29,057

(22,482

)

12,517

13,171

Core net income (3)28,587

30,715

7,470

13,214

13,598

Tax equivalent adjustment (1)259

256

251

232

239

At Period EndTotal assets$

6,974,953

$

7,013,811

$

6,538,942

$

3,468,992

$

3,350,724

Earning assets6,340,132

6,345,655

5,889,186

3,175,935

3,045,659

Loans5,470,548

5,457,238

5,113,917

2,777,564

2,665,300

Allowance for loan losses88,917

88,555

85,859

31,243

30,250

Deposits5,795,757

5,759,843

4,994,148

2,870,325

2,760,615

Stockholders' equity959,025

940,968

916,843

426,167

418,046

Stockholders' equity / assets13.75

%

13.42

%

14.02

%

12.29

%

12.48

%

Goodwill317,948

317,948

317,520

100,069

100,069

Average BalancesTotal assets$

6,935,783

$

7,005,783

$

5,357,598

$

3,425,097

$

3,303,013

Earning assets6,211,267

6,247,037

4,862,532

3,107,224

2,985,498

Loans5,555,621

5,389,805

4,317,857

2,688,519

2,624,314

Deposits and interest-bearing liabilities5,901,652

5,963,127

4,488,003

2,954,049

2,843,079

Deposits5,738,006

5,490,986

4,240,053

2,830,043

2,718,632

Stockholders' equity927,506

932,793

787,519

420,352

411,041

Stockholders' equity / assets13.37

%

13.31

%

14.70

%

12.27

%

12.44

%

Per Common Share DataNet Income (Loss):Basic$

0.69

$

0.78

$

(0.71

)

$

0.63

$

0.67

Diluted0.69

0.78

(0.71

)

0.63

0.66

Core diluted (3)0.77

0.82

0.24

0.66

0.68

Dividends0.22

0.22

0.22

0.22

0.19

Market Value:High$

21.24

$

20.11

$

32.05

$

32.39

$

29.44

Low14.74

12.95

10.98

27.77

25.50

Close15.58

17.67

14.74

31.32

28.97

Common Book Value25.71

25.23

24.58

21.60

21.19

Shares outstanding, end of period (000s)37,297

37,296

37,288

19,730

19,729

Performance Ratios (annualized)Tax-equivalent net interest margin (1)3.47

%

3.51

%

3.78

%

3.80

%

3.88

%

Return on average assets1.49

%

1.67

%

-1.69

%

1.45

%

1.58

%

Core return on average assets (3)1.64

%

1.76

%

0.56

%

1.53

%

1.63

%

Return on average equity11.12

%

12.53

%

-11.48

%

11.81

%

12.71

%

Core return on average equity (3)12.26

%

13.24

%

3.82

%

12.47

%

13.12

%

Efficiency ratio (2)56.54

%

48.96

%

70.86

%

59.52

%

56.79

%

Core efficiency ratio (3)49.90

%

46.26

%

51.62

%

57.40

%

55.48

%

Effective tax rate19.61

%

20.09

%

19.97

%

19.09

%

18.72

%

Common dividend payout ratio (core)28.57

%

26.83

%

91.67

%

34.92

%

28.36

%

Selected Quarterly InformationPremier Financial Corp. (dollars inthousands, 3rd Qtr 2020 2nd Qtr 2020 1st Qtr 2020 4th Qtr 2019 3rd Qtr 2019except per sharedata)Summary ofOperationsTax-equivalent $ 60,418 $ 62,705 $ 54,773 $ 36,473 $ 35,922 interest income(1)Interest expense 6,888 8,145 9,059 6,743 6,791

Tax-equivalent 53,530 54,560 45,714 29,730 29,131 net interestincome (1)Provision for 2,794 2,975 45,244 1,123 1,266 credit lossesCore provision 2,794 2,975 19,295 1,123 1,266 for creditlosses (3)Investment 1,480 (2 ) - 13 11 securities gains(losses)Non-interestincome 23,520 23,017 13,999 11,803 11,831 (excludingsecurities gains/losses)Non-interest 43,563 37,984 42,310 24,721 23,264 expenseCore 38,445 35,885 30,824 23,839 22,724 non-interestexpense (3)Income tax 6,259 7,303 (5,610 ) 2,953 3,033 expense(benefit)Net income 25,655 29,057 (22,482 ) 12,517 13,171 (loss)Core net income 28,587 30,715 7,470 13,214 13,598 (3)Tax equivalent 259 256 251 232 239 adjustment (1)At Period EndTotal assets $ 6,974,953 $ 7,013,811 $ 6,538,942 $ 3,468,992 $ 3,350,724

Earning assets 6,340,132 6,345,655 5,889,186 3,175,935 3,045,659

Loans 5,470,548 5,457,238 5,113,917 2,777,564 2,665,300

Allowance for 88,917 88,555 85,859 31,243 30,250 loan lossesDeposits 5,795,757 5,759,843 4,994,148 2,870,325 2,760,615

Stockholders' 959,025 940,968 916,843 426,167 418,046 equityStockholders' 13.75 % 13.42 % 14.02 % 12.29 % 12.48 %equity / assetsGoodwill 317,948 317,948 317,520 100,069 100,069

Average BalancesTotal assets $ 6,935,783 $ 7,005,783 $ 5,357,598 $ 3,425,097 $ 3,303,013

Earning assets 6,211,267 6,247,037 4,862,532 3,107,224 2,985,498

Loans 5,555,621 5,389,805 4,317,857 2,688,519 2,624,314

Deposits and 5,901,652 5,963,127 4,488,003 2,954,049 2,843,079 interest-bearingliabilitiesDeposits 5,738,006 5,490,986 4,240,053 2,830,043 2,718,632

Stockholders' 927,506 932,793 787,519 420,352 411,041 equityStockholders' 13.37 % 13.31 % 14.70 % 12.27 % 12.44 %equity / assetsPer Common ShareDataNet Income(Loss):Basic $ 0.69 $ 0.78 $ (0.71 ) $ 0.63 $ 0.67

Diluted 0.69 0.78 (0.71 ) 0.63 0.66

Core diluted (3) 0.77 0.82 0.24 0.66 0.68

Dividends 0.22 0.22 0.22 0.22 0.19

Market Value:High $ 21.24 $ 20.11 $ 32.05 $ 32.39 $ 29.44

Low 14.74 12.95 10.98 27.77 25.50

Close 15.58 17.67 14.74 31.32 28.97

Common Book 25.71 25.23 24.58 21.60 21.19 ValueShares 37,297 37,296 37,288 19,730 19,729 outstanding, endof period (000s)PerformanceRatios(annualized)Tax-equivalent 3.47 % 3.51 % 3.78 % 3.80 % 3.88 %net interestmargin (1)Return on 1.49 % 1.67 % -1.69 % 1.45 % 1.58 %average assetsCore return on 1.64 % 1.76 % 0.56 % 1.53 % 1.63 %average assets(3)Return on 11.12 % 12.53 % -11.48 % 11.81 % 12.71 %average equityCore return on 12.26 % 13.24 % 3.82 % 12.47 % 13.12 %average equity(3)Efficiency ratio 56.54 % 48.96 % 70.86 % 59.52 % 56.79 %(2)Core efficiency 49.90 % 46.26 % 51.62 % 57.40 % 55.48 %ratio (3)Effective tax 19.61 % 20.09 % 19.97 % 19.09 % 18.72 %rateCommon dividend 28.57 % 26.83 % 91.67 % 34.92 % 28.36 %payout ratio(core)Note: 2020 current quarter and year-to-date results include three and five months of operations from UCFC, respectively, compared to none for comparable periods in 2019.(1) Interest income on tax-exempt securities and loans has been adjusted to a tax-equivalent basis using the statutory federal income tax rate of 21%.(2) Efficiency ratio = Non-interest expense divided by sum of tax-equivalent net interest income plus non-interest income, excluding securities gains or losses, net.(3) Core items exclude the impact of acquisition related provision ("CECL double-dip") and other charges. See non-GAAP reconciliations.Note: 2020 current quarter and year-to-date results include three and fivemonths of operations from UCFC, respectively, compared to none for comparableperiods in 2019.(1) Interest income on tax-exempt securities and loans has been adjusted to atax-equivalent basis using the statutory federal income tax rate of 21%.(2) Efficiency ratio = Non-interest expense divided by sum of tax-equivalentnet interest income plus non-interest income, excluding securities gains orlosses, net.(3) Core items exclude the impact of acquisition related provision ("CECLdouble-dip") and other charges. See non-GAAP reconciliations.Selected Quarterly InformationPremier Financial Corp.(dollars in thousands, except per share data)3rd Qtr 2020

2nd Qtr 2020

1st Qtr 2020

4th Qtr 2019

3rd Qtr 2019

Loan Portfolio CompositionOne to four family residential real estate$

1,194,940

$

1,226,106

$

1,265,901

$

324,773

$

330,369

Construction580,060

509,548

521,442

305,305

308,061

Commercial real estate2,328,944

2,266,189

2,200,266

1,506,026

1,430,919

Commercial1,263,565

1,244,549

897,865

578,071

537,806

Consumer finance128,995

146,139

137,679

37,649

36,644

Home equity and improvement281,010

290,459

301,146

122,864

123,871

Total loans5,777,514

5,682,990

5,324,299

2,874,688

2,767,670

Less:Undisbursed loan funds300,174

221,137

206,236

94,865

100,260

Deferred loan origination fees6,792

4,615

4,146

2,259

2,110

Allowance for credit losses - loans88,917

88,555

85,859

31,243

30,250

Net Loans$

5,381,631

$

5,368,683

$

5,028,058

$

2,746,321

$

2,635,050

Allowance for credit losses - loansBeginning allowance$

88,555

$

85,859

$

31,243

$

30,250

$

28,934

CECL adoption-

-

2,354

-

-

Acquisition related allowance/provision (non PCD)-

-

25,949

-

-

Acquisition related allowance/goodwill (PCD)-

-

7,698

-

-

Provision for credit losses - loans3,658

1,868

17,837

1,084

1,327

Net recoveries (charge-offs)(3,296

)

828

778

(91

)

(11

)

Ending allowance$

88,917

$

88,555

$

85,859

$

31,243

$

30,250

Credit QualityTotal non-performing loans (1)$

48,322

$

39,470

$

32,692

$

13,437

$

14,677

Real estate owned (REO)521

573

548

100

-

Total non-performing assets (2)$

48,843

$

40,043

$

33,240

$

13,537

$

14,677

Net charge-offs (recoveries)3,296

(828

)

(778

)

91

11

Restructured loans, accruing (3)8,499

7,916

7,474

8,427

10,334

Allowance for credit losses - loans / loans1.63

%

1.62

%

1.68

%

1.12

%

1.13

%

Allowance for credit losses - loans / non-performing assets182.05

%

221.15

%

259.07

%

230.80

%

206.10

%

Allowance for credit losses - loans / non-performing loans184.01

%

224.36

%

263.43

%

232.51

%

206.10

%

Non-performing assets / loans plus REO0.89

%

0.73

%

0.65

%

0.49

%

0.55

%

Non-performing assets / total assets0.70

%

0.57

%

0.51

%

0.39

%

0.44

%

Net charge-offs / average loans (annualized)0.24

%

-0.06

%

-0.07

%

0.01

%

0.00

%

Deposit BalancesNon-interest-bearing demand deposits$

1,436,807

$

1,454,842

$

1,041,315

$

630,359

$

604,129

Interest-bearing demand deposits and money market2,511,263

2,361,486

2,069,723

1,198,012

1,124,208

Savings deposits674,354

671,650

606,508

303,166

294,594

Retail time deposits less than $250,000975,658

1,078,758

1,091,038

631,253

634,737

Retail time deposits greater than $250,000197,675

193,107

185,564

107,535

102,947

Total deposits$

5,795,757

$

5,759,843

$

4,994,148

$

2,870,325

$

2,760,615

Selected Quarterly InformationPremier Financial Corp. (dollars in 3rd Qtr 2020 2nd Qtr 2020 1st Qtr 2020 4th Qtr 2019 3rd Qtr 2019thousands, exceptper share data)Loan PortfolioCompositionOne to four family $ 1,194,940 $ 1,226,106 $ 1,265,901 $ 324,773 $ 330,369 residential realestateConstruction 580,060 509,548 521,442 305,305 308,061

Commercial real 2,328,944 2,266,189 2,200,266 1,506,026 1,430,919 estateCommercial 1,263,565 1,244,549 897,865 578,071 537,806

Consumer finance 128,995 146,139 137,679 37,649 36,644

Home equity and 281,010 290,459 301,146 122,864 123,871 improvementTotal loans 5,777,514 5,682,990 5,324,299 2,874,688 2,767,670

Less:Undisbursed loan 300,174 221,137 206,236 94,865 100,260 fundsDeferred loan 6,792 4,615 4,146 2,259 2,110 origination feesAllowance for credit 88,917 88,555 85,859 31,243 30,250 losses - loansNet Loans $ 5,381,631 $ 5,368,683 $ 5,028,058 $ 2,746,321 $ 2,635,050

Allowance for creditlosses - loansBeginning allowance $ 88,555 $ 85,859 $ 31,243 $ 30,250 $ 28,934

CECL adoption - - 2,354 - -

Acquisition related - - 25,949 - - allowance/provision(non PCD)Acquisition related - - 7,698 - - allowance/goodwill(PCD)Provision for credit 3,658 1,868 17,837 1,084 1,327 losses - loansNet recoveries (3,296 ) 828 778 (91 ) (11 )(charge-offs)Ending allowance $ 88,917 $ 88,555 $ 85,859 $ 31,243 $ 30,250

Credit QualityTotal non-performing $ 48,322 $ 39,470 $ 32,692 $ 13,437 $ 14,677 loans (1)Real estate owned 521 573 548 100 - (REO)Total non-performing $ 48,843 $ 40,043 $ 33,240 $ 13,537 $ 14,677 assets (2)Net charge-offs 3,296 (828 ) (778 ) 91 11 (recoveries) Restructured loans, 8,499 7,916 7,474 8,427 10,334 accruing (3) Allowance for credit 1.63 % 1.62 % 1.68 % 1.12 % 1.13 %losses - loans /loansAllowance for creditlosses - loans / 182.05 % 221.15 % 259.07 % 230.80 % 206.10 %non-performingassetsAllowance for credit 184.01 % 224.36 % 263.43 % 232.51 % 206.10 %losses - loans /non-performing loansNon-performing 0.89 % 0.73 % 0.65 % 0.49 % 0.55 %assets / loans plusREONon-performing 0.70 % 0.57 % 0.51 % 0.39 % 0.44 %assets / totalassetsNet charge-offs / 0.24 % -0.06 % -0.07 % 0.01 % 0.00 %average loans(annualized) Deposit BalancesNon-interest-bearing $ 1,436,807 $ 1,454,842 $ 1,041,315 $ 630,359 $ 604,129 demand depositsInterest-bearing 2,511,263 2,361,486 2,069,723 1,198,012 1,124,208 demand deposits andmoney marketSavings deposits 674,354 671,650 606,508 303,166 294,594

Retail time deposits 975,658 1,078,758 1,091,038 631,253 634,737 less than $250,000Retail time deposits 197,675 193,107 185,564 107,535 102,947 greater than$250,000Total deposits $ 5,795,757 $ 5,759,843 $ 4,994,148 $ 2,870,325 $ 2,760,615

(1) Non-performing loans consist of non-accrual loans.(2) Non-performing assets are non-performing loans plus real estate and other assets acquired by foreclosure or deed-in-lieu thereof.(3) Accruing restructured loans are loans with known credit problems that are not contractually past due and therefore are not included in non-performing loans.(1) Non-performing loans consist of non-accrual loans.(2) Non-performing assets are non-performing loans plus real estate and otherassets acquired by foreclosure or deed-in-lieu thereof.(3) Accruing restructured loans are loans with known credit problems that arenot contractually past due and therefore are not included in non-performingloans.Loan Delinquency InformationPremier Financial Corp.(dollars in thousands)Total Balance

Current

30 to 89 days

past due

% of

Total

Non Accrual

Loans

% of

Total

September 30, 2020One to four family residential real estate$

1,194,940

$

1,173,175

$

10,562

0.9

%

$

11,203

0.9

%

Construction580,060

578,110

1,587

0.3

%

363

0.1

%

Commercial real estate2,328,944

2,305,223

703

0.0

%

23,018

1.0

%

Commercial1,263,565

1,253,474

212

0.0

%

9,879

0.8

%

Consumer finance128,995

125,260

2,682

2.1

%

1,053

0.8

%

Home equity and improvement281,010

273,041

5,125

1.8

%

2,844

1.0

%

Total loans$

5,777,514

$

5,708,283

$

20,871

0.4

%

$

48,360

0.8

%

June 30, 2020One to four family residential real estate$

1,226,106

$

1,213,482

$

6,056

0.5

%

$

6,568

0.5

%

Construction509,548

509,548

-

0.0

%

-

0.0

%

Commercial real estate2,266,189

2,244,412

1,040

0.0

%

20,737

0.9

%

Commercial1,244,549

1,233,703

680

0.1

%

10,166

0.8

%

Consumer finance146,139

144,555

988

0.7

%

596

0.4

%

Home equity and improvement290,459

285,858

2,237

0.8

%

2,364

0.8

%

Total loans$

5,682,990

$

5,631,558

$

11,001

0.2

%

$

40,431

0.7

%

September 30, 2019One to four family residential real estate$

330,369

$

325,573

$

1,787

0.5

%

$

3,009

0.9

%

Construction308,061

308,061

-

0.0

%

-

0.0

%

Commercial real estate1,430,919

1,414,694

8,012

0.6

%

8,213

0.6

%

Commercial537,806

534,321

516

0.1

%

2,969

0.6

%

Consumer finance36,644

36,413

231

0.6

%

-

0.0

%

Home equity and improvement123,871

122,103

1,282

1.0

%

486

0.4

%

Total loans$

2,767,670

$

2,741,165

$

11,828

0.4

%

$

14,677

0.5

%

Loan Delinquency InformationPremier Financial Corp. 30 to 89 % of Non % of(dollars in Total Current days Accrual thousands) Balance Total Total past due Loans

September 30,2020One to fourfamily $ 1,194,940 $ 1,173,175 $ 10,562 0.9 % $ 11,203 0.9 %residentialreal estateConstruction 580,060 578,110 1,587 0.3 % 363 0.1 %

Commercial real 2,328,944 2,305,223 703 0.0 % 23,018 1.0 %estateCommercial 1,263,565 1,253,474 212 0.0 % 9,879 0.8 %

Consumer 128,995 125,260 2,682 2.1 % 1,053 0.8 %financeHome equity and 281,010 273,041 5,125 1.8 % 2,844 1.0 %improvementTotal loans $ 5,777,514 $ 5,708,283 $ 20,871 0.4 % $ 48,360 0.8 %

June 30, 2020One to fourfamily $ 1,226,106 $ 1,213,482 $ 6,056 0.5 % $ 6,568 0.5 %residentialreal estateConstruction 509,548 509,548 - 0.0 % - 0.0 %

Commercial real 2,266,189 2,244,412 1,040 0.0 % 20,737 0.9 %estateCommercial 1,244,549 1,233,703 680 0.1 % 10,166 0.8 %

Consumer 146,139 144,555 988 0.7 % 596 0.4 %financeHome equity and 290,459 285,858 2,237 0.8 % 2,364 0.8 %improvementTotal loans $ 5,682,990 $ 5,631,558 $ 11,001 0.2 % $ 40,431 0.7 %

September 30,2019One to fourfamily $ 330,369 $ 325,573 $ 1,787 0.5 % $ 3,009 0.9 %residentialreal estateConstruction 308,061 308,061 - 0.0 % - 0.0 %

Commercial real 1,430,919 1,414,694 8,012 0.6 % 8,213 0.6 %estateCommercial 537,806 534,321 516 0.1 % 2,969 0.6 %

Consumer 36,644 36,413 231 0.6 % - 0.0 %financeHome equity and 123,871 122,103 1,282 1.0 % 486 0.4 %improvementTotal loans $ 2,767,670 $ 2,741,165 $ 11,828 0.4 % $ 14,677 0.5 %

COVID-19 UpdatePremier Financial Corp.($ in thousands)Deferrals Update9/30/2020

6/30/2020

Commercial loan deferrals$

434,554

$

739,632

% of commercial loans11.4

%

19.7

%

% of total loans7.9

%

13.5

%

Retail loan deferrals$

48,187

$

73,266

% of retail loans2.9

%

4.3

%

% of total loans0.9

%

1.3

%

Total loan deferrals$

482,741

$

812,898

% of total loans8.8

%

14.9

%

Commercial High Sensitivity Portfolio UpdateAs of 9/30/20

As of 6/30/20

Industry% of Total

Loans

% Balances

Deferred

% Classified

in Subsector

% of Total

Loans

% Balances

Deferred

% Classified

in Subsector

Traveler Accommodation2.8

%

60.7

%

3.9

%

2.8

%

86.9

%

0.7

%

Food Service1.0

%

22.4

%

0.6

%

1.1

%

50.0

%

0.6

%

Sub-total3.7

%

51.0

%

3.1

%

3.8

%

76.7

%

0.6

%

Retail Trade and CRE9.4

%

17.7

%

1.3

%

9.6

%

34.3

%

2.2

%

Long-term Care1.9

%

10.8

%

11.0

%

2.0

%

26.0

%

4.1

%

Arts/Entertainment/Recreation0.4

%

37.8

%

2.5

%

0.4

%

42.1

%

4.6

%

Energy0.1

%

0.0

%

0.0

%

0.1

%

0.0

%

0.0

%

Total15.6

%

25.2

%

3.0

%

15.9

%

43.4

%

2.1

%

Commercial Loan Deferral Rollforward6/30/20

Balance

New

Deferrals

Payoffs/

Changes

Return to

Pay(1)

9/30/20

Balance

3Q20

Extensions

Interest only 1-3 months$

28,134

$

5,032

$

9,326

$

(30,178

)

$

12,314

$

10,988

Interest only 4-5 months146,826

3,976

(12,746

)

(111,113

)

26,943

-

Interest only 6 months55,174

7,182

1,415

(8,575

)

55,196

2,392

Deferred payment 1-90 days138,966

11,155

(12,844

)

(80,015

)

57,262

12,422

Deferred payment 91-179 days93,262

328

(3,250

)

(83,843

)

6,497

4,946

Deferred payment 180 days277,270

6,102

(1,166

)

(5,864

)

276,342

-

Total$

739,632

$

33,775

$

(19,265

)

$

(319,588

)

$

434,554

$

30,748

Commercial Loan Deferral Expirations Update9/30/20

Balance

October$

277,010

November123,851

December12,226

January14,000

February5,075

March+2,392

Total$

434,554

COVID-19 UpdatePremier Financial Corp.($ in thousands) Deferrals 9/30/2020 6/30/2020UpdateCommercial $ 434,554 $ 739,632 loandeferrals% of 11.4 % 19.7 %commercialloans% of total 7.9 % 13.5 %loansRetail loan $ 48,187 $ 73,266 deferrals% of retail 2.9 % 4.3 %loans% of total 0.9 % 1.3 %loansTotal loan $ 482,741 $ 812,898 deferrals% of total 8.8 % 14.9 %loans CommercialHigh As of 9/30/20 As of 6/30/20SensitivityPortfolioUpdate % % % of Total % Balances Classified % of Total % Balances ClassifiedIndustry Loans Deferred in Loans Deferred in Subsector Subsector

Traveler 2.8 % 60.7 % 3.9 % 2.8 % 86.9 % 0.7 %AccommodationFood Service 1.0 % 22.4 % 0.6 % 1.1 % 50.0 % 0.6 %

Sub-total 3.7 % 51.0 % 3.1 % 3.8 % 76.7 % 0.6 %

Retail Trade 9.4 % 17.7 % 1.3 % 9.6 % 34.3 % 2.2 %and CRELong-term 1.9 % 10.8 % 11.0 % 2.0 % 26.0 % 4.1 %CareArts/ 0.4 % 37.8 % 2.5 % 0.4 % 42.1 % 4.6 %Entertainment/RecreationEnergy 0.1 % 0.0 % 0.0 % 0.1 % 0.0 % 0.0 %

Total 15.6 % 25.2 % 3.0 % 15.9 % 43.4 % 2.1 %

Commercial 6/30/20 New Payoffs/ Return to 9/30/20 3Q20Loan Deferral Rollforward Balance Deferrals Changes Pay^(1) Balance Extensions

Interest only $ 28,134 $ 5,032 $ 9,326 $ (30,178 ) $ 12,314 $ 10,988 1-3 monthsInterest only 146,826 3,976 (12,746 ) (111,113 ) 26,943 - 4-5 monthsInterest only 55,174 7,182 1,415 (8,575 ) 55,196 2,392 6 monthsDeferred 138,966 11,155 (12,844 ) (80,015 ) 57,262 12,422 payment 1-90daysDeferred 93,262 328 (3,250 ) (83,843 ) 6,497 4,946 payment91-179 daysDeferred 277,270 6,102 (1,166 ) (5,864 ) 276,342 - payment 180daysTotal $ 739,632 $ 33,775 $ (19,265 ) $ (319,588 ) $ 434,554 $ 30,748

Commercial 9/30/20Loan DeferralExpirations BalanceUpdateOctober $ 277,010

November 123,851

December 12,226

January 14,000

February 5,075

March+ 2,392

Total $ 434,554

(1) Represents approximately 76.4% of previously disclosed third quarter 2020 scheduled expirations.(1) Represents approximately 76.4% of previously disclosed third quarter 2020scheduled expirations.Non-GAAP ReconciliationsPremier Financial Corp.Nine months ended

(In thousands, except per share and ratio data)9/30/20

9/30/19

3rd Qtr 2020

2nd Qtr 2020

1st Qtr 2020

4th Qtr 2019

3rd Qtr 2019

Acquisition related charges (pre-tax)$

17,295

$

540

$

3,711

$

2,099

$

11,486

$

882

$

540

Less: Tax benefit of acquisition related charges3,254

113

779

441

2,034

185

113

Acquisition related charges (after-tax)$

14,041

$

427

$

2,932

$

1,658

$

9,452

$

697

$

427

Total non-interest expenses$

123,856

$

72,364

$

43,563

$

37,984

$

42,310

$

24,721

$

23,264

Less: Acquisition related charges (pre-tax)17,295

540

3,711

2,099

11,486

882

540

Less: FHLB prepayment charges(1)1,407

-

1,407

-

-

-

-

Core non-interest expenses$

105,154

$

71,824

$

38,445

$

35,885

$

30,824

$

23,839

$

22,724

Acquisition related provision (pre-tax)$

25,949

$

-

$

-

$

-

$

25,949

$

-

$

-

Less: Tax benefit of acquisition related provision5,449

-

-

-

5,449

-

-

Acquisition related provision (after-tax)$

20,500

$

-

$

-

$

-

$

20,500

$

-

$

-

Provision for credit losses$

51,014

$

1,761

$

2,794

$

2,975

$

45,244

$

1,123

$

1,266

Less: Acquisition related provision (pre-tax)25,949

-

-

-

25,949

-

-

Core provision for credit losses$

25,065

$

1,761

$

2,794

$

2,975

$

19,295

$

1,123

$

1,266

Non-interest income$

62,013

$

33,141

$

25,000

$

23,015

$

13,999

$

11,816

$

11,842

Less: Securities gains (losses)1,478

11

1,480

(2

)

-

13

11

Non-interest income (excluding securities gains/losses)$

60,535

$

33,130

$

23,520

$

23,017

$

13,999

$

11,803

$

11,831

Tax-equivalent net interest income$

153,805

$

86,886

$

53,530

$

54,560

$

45,714

$

29,730

$

29,131

Non-interest income (excluding securities gains/losses)60,549

33,130

23,520

23,017

13,999

11,803

11,831

Total revenues214,354

120,016

77,050

77,577

59,713

41,533

40,962

Core non-interest expenses$

105,154

$

71,824

$

38,445

$

35,885

$

30,824

$

23,839

$

22,724

Core efficiency ratio49.06

%

59.85

%

49.90

%

46.26

%

51.62

%

57.40

%

55.48

%

Income (loss) before income taxes$

40,181

$

45,167

$

31,914

$

36,360

$

(28,092

)

$

15,470

$

16,204

Add: Provision for credit losses51,014

1,761

2,794

2,975

45,244

1,123

1,266

Pre-tax pre-provision income91,195

46,928

34,708

39,335

17,152

16,593

17,470

Add: Acquisition related charges (pre-tax)17,295

540

3,711

2,099

11,486

882

540

Core pre-tax pre-provision income$

108,490

$

47,468

$

38,419

$

41,434

$

28,638

$

17,475

$

18,010

Average total assets$

6,437,886

$

3,236,674

$

6,935,783

$

7,005,783

$

5,357,598

$

3,425,097

$

3,303,013

Core pre-tax pre-provision return on average assets2.25

%

1.97

%

2.20

%

2.38

%

2.15

%

2.02

%

2.16

%

Net income (loss)$

32,230

$

36,852

$

25,655

$

29,057

$

(22,482

)

$

12,517

$

13,171

Add: Acquisition related provision (after-tax)20,500

427

-

-

20,500

-

-

Add: Acquisition related charges (after-tax)14,041

-

2,932

1,658

9,452

697

427

Core net income$

66,771

$

37,279

$

28,587

$

30,715

$

7,470

$

13,214

$

13,598

Diluted shares - Reported35,482

19,943

37,334

37,324

31,642

19,895

19,875

Add: Dilutive shares for core net income-

-

-

-

121

-

-

Diluted shares - Core35,482

19,943

37,334

37,324

31,763

19,895

19,875

Core diluted EPS$

1.88

$

1.87

$

0.77

$

0.82

$

0.24

$

0.66

$

0.68

Average total assets$

6,437,886

$

3,236,674

$

6,935,783

$

7,005,783

$

5,357,598

$

3,425,097

$

3,303,013

Core return on average assets1.39

%

1.54

%

1.64

%

1.76

%

0.56

%

1.53

%

1.63

%

Average total equity$

881,932

$

401,597

$

927,506

$

932,793

$

787,519

$

420,352

$

411,041

Core return on average equity10.11

%

12.44

%

12.26

%

13.24

%

3.82

%

12.47

%

13.12

%

Non-GAAP ReconciliationsPremier Financial Corp. Nine months ended

(In thousands,except per 9/30/20 9/30/19 3rd Qtr 2020 2nd Qtr 2020 1st Qtr 2020 4th Qtr 2019 3rd Qtr 2019share andratio data)Acquisitionrelated $ 17,295 $ 540 $ 3,711 $ 2,099 $ 11,486 $ 882 $ 540 charges(pre-tax)Less: Taxbenefit of 3,254 113 779 441 2,034 185 113 acquisitionrelatedchargesAcquisitionrelated $ 14,041 $ 427 $ 2,932 $ 1,658 $ 9,452 $ 697 $ 427 charges(after-tax) Total $ 123,856 $ 72,364 $ 43,563 $ 37,984 $ 42,310 $ 24,721 $ 23,264 non-interestexpensesLess:Acquisition 17,295 540 3,711 2,099 11,486 882 540 relatedcharges(pre-tax)Less: FHLB 1,407 - 1,407 - - - - prepaymentcharges^(1)Core $ 105,154 $ 71,824 $ 38,445 $ 35,885 $ 30,824 $ 23,839 $ 22,724 non-interestexpenses Acquisitionrelated $ 25,949 $ - $ - $ - $ 25,949 $ - $ - provision(pre-tax)Less: Taxbenefit of 5,449 - - - 5,449 - - acquisitionrelatedprovisionAcquisitionrelated $ 20,500 $ - $ - $ - $ 20,500 $ - $ - provision(after-tax) Provision for $ 51,014 $ 1,761 $ 2,794 $ 2,975 $ 45,244 $ 1,123 $ 1,266 credit lossesLess:Acquisition 25,949 - - - 25,949 - - relatedprovision(pre-tax)Core provision $ 25,065 $ 1,761 $ 2,794 $ 2,975 $ 19,295 $ 1,123 $ 1,266 for creditlosses Non-interest $ 62,013 $ 33,141 $ 25,000 $ 23,015 $ 13,999 $ 11,816 $ 11,842 incomeLess: 1,478 11 1,480 (2 ) - 13 11 Securitiesgains (losses)Non-interestincome $ 60,535 $ 33,130 $ 23,520 $ 23,017 $ 13,999 $ 11,803 $ 11,831 (excludingsecuritiesgains/losses) Tax-equivalent $ 153,805 $ 86,886 $ 53,530 $ 54,560 $ 45,714 $ 29,730 $ 29,131 net interestincomeNon-interestincome 60,549 33,130 23,520 23,017 13,999 11,803 11,831 (excludingsecuritiesgains/losses)Total revenues 214,354 120,016 77,050 77,577 59,713 41,533 40,962

Core $ 105,154 $ 71,824 $ 38,445 $ 35,885 $ 30,824 $ 23,839 $ 22,724 non-interestexpensesCore 49.06 % 59.85 % 49.90 % 46.26 % 51.62 % 57.40 % 55.48 %efficiencyratio Income (loss) $ 40,181 $ 45,167 $ 31,914 $ 36,360 $ (28,092 ) $ 15,470 $ 16,204 before incometaxesAdd: Provision 51,014 1,761 2,794 2,975 45,244 1,123 1,266 for creditlossesPre-tax 91,195 46,928 34,708 39,335 17,152 16,593 17,470 pre-provisionincomeAdd:Acquisition 17,295 540 3,711 2,099 11,486 882 540 relatedcharges(pre-tax)Core pre-tax $ 108,490 $ 47,468 $ 38,419 $ 41,434 $ 28,638 $ 17,475 $ 18,010 pre-provisionincomeAverage total $ 6,437,886 $ 3,236,674 $ 6,935,783 $ 7,005,783 $ 5,357,598 $ 3,425,097 $ 3,303,013 assetsCore pre-taxpre-provision 2.25 % 1.97 % 2.20 % 2.38 % 2.15 % 2.02 % 2.16 %return onaverage assets Net income $ 32,230 $ 36,852 $ 25,655 $ 29,057 $ (22,482 ) $ 12,517 $ 13,171 (loss)Add:Acquisition 20,500 427 - - 20,500 - - relatedprovision(after-tax)Add:Acquisition 14,041 - 2,932 1,658 9,452 697 427 relatedcharges(after-tax)Core net $ 66,771 $ 37,279 $ 28,587 $ 30,715 $ 7,470 $ 13,214 $ 13,598 income Diluted shares 35,482 19,943 37,334 37,324 31,642 19,895 19,875 - ReportedAdd: Dilutiveshares for - - - - 121 - - core netincomeDiluted shares 35,482 19,943 37,334 37,324 31,763 19,895 19,875 - CoreCore diluted $ 1.88 $ 1.87 $ 0.77 $ 0.82 $ 0.24 $ 0.66 $ 0.68 EPS Average total $ 6,437,886 $ 3,236,674 $ 6,935,783 $ 7,005,783 $ 5,357,598 $ 3,425,097 $ 3,303,013 assetsCore return on 1.39 % 1.54 % 1.64 % 1.76 % 0.56 % 1.53 % 1.63 %average assets Average total $ 881,932 $ 401,597 $ 927,506 $ 932,793 $ 787,519 $ 420,352 $ 411,041 equityCore return on 10.11 % 12.44 % 12.26 % 13.24 % 3.82 % 12.47 % 13.12 %average equity Note: 2020 current quarter and year-to-date results include three and eight months of operations from UCFC, respectively, compared to none for comparable periods in 2019.(1) Represents prepayment penalties on FHLB early extinguishments funded by gains on securities sales that are excluded from revenues for efficiency ratio calculation. View source version on businesswire.com: https://www.businesswire.com/news/home/20201020006164/en/

CONTACT: Paul Nungester EVP and CFO 419.785.8700 PNungester@yourpremierbank.com