Business Wire | Jul 28, 2020 04:34PM EDT

Premier Financial Corp. Announces Record Quarterly Earnings for Second Quarter 2020

Jul. 28, 2020

DEFIANCE, Ohio--(BUSINESS WIRE)--Jul. 28, 2020--Premier Financial Corp. (NASDAQ: PFC) ("Premier" or the "Company") announced today second quarter results including solid core profitability and a 15.8% increase in its year-over-year dividend. On a GAAP basis, net income for the second quarter of 2020 was $29.1 million, or $0.78 per diluted common share, compared to income of $12.2 million, or $0.61 per diluted common share, for the second quarter of 2019. Net income for the six months ended June 30, 2020, was $6.6 million, or $0.19 per diluted common share, compared to $23.7 million, or $1.19 per diluted common share, for the six months ended June 30, 2019. The six months' year-over-year comparison is substantially impacted by the acquisition of United Community Financial Corp. ("UCFC") with the current year's provision expense of $48.2 million, which included $25.9 million related to acquisition accounting for an after-tax cost of $20.5 million, or $0.59 per diluted common share. The first half of 2019 included a provision expense of $495,000, which had an after-tax cost of $391,000, or $0.02 per diluted common share, and no acquisition impact. Additionally, the current year's six month results include the impact of $13.6 million of acquisition-related charges, which had an after-tax cost of $11.1 million, or $0.32 per diluted common share. Excluding the impact of the acquisition-related provision and charges, earnings for the first half of 2020 were $38.2 million, or $1.11 per diluted common share.

"Strong non-interest income performance and operating efficiency led to record quarterly results for the second quarter," said Donald P. Hileman, CEO of Premier. "We are very pleased by our ability to generate solid profitability for our shareholders while supporting the communities we serve. We happily participated in the PPP program while also conducting loan deferrals for both commercial and retail customers to help them during this difficult and uncertain time."

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 second quarter and year-to-date results including three and five 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 occurring as expected.

"We achieved a significant milestone with the successful completion of our core systems conversion on July 13, 2020," said Gary M. Small, President of Premier. "We are very proud of the hard work and dedication exhibited by the Premier team to help us accomplish our integration goals especially during a pandemic. It truly shows how we are 'Powered by People'."

Business Client Support Efforts

As a part of the CARES Act, the Small Business Administration ("SBA") 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 the PPP program for clients and made 2,758 loans for a total of $434 million as of June 30, 2020. Total gross fees for these loans totaled $14.5 million. We recognized $823,000 as loan interest income during the second quarter.

Net interest income up compared to second quarter of 2019

Net interest income of $54.3 million in the second quarter of 2020 was up from $29.0 million in the second quarter of 2019. The increase over the prior year's second quarter was attributable to organic growth and three months of income from UCFC compared to none in 2019. Net interest margin was 3.51% for the second quarter of 2020, down from 3.78% in the first quarter of 2020, and down from 4.03% in the second quarter of 2019. Yield on interest earning assets decreased to 4.04% in the second quarter of 2020, down 50 basis points from 4.54% in the first quarter of 2020. Total cost of funds decreased 26 basis points in the second quarter of 2020 to 0.55% from 0.81% in the first quarter of 2020 while the total cost of interest-bearing liabilities decreased 29 basis points to 0.72% from 1.01%. The 2020 second quarter results include the impact of acquisition marks and related accretion for the UCFC acquisition. Interest income includes $2.2 million of accretion and interest expense includes $1.5 million of accretion, which combined added 24 basis points of net interest margin. The second quarter results also include the impact of PPP loans. Interest income includes $1.6 million on average balances of $298.2 million, which reduced net interest margin by six basis points. Excluding the impact of acquisition marks and PPP loans, net interest margin would be 3.34% for the second quarter of 2020 compared to 3.68% for first quarter of 2020 excluding the impact of acquisition marks.

"We are pleased with the continued growth of net interest income despite the margin compression," said Hileman. "The PPP loans drove loan growth in the quarter and represented a significant effort by the team. While the low-yielding nature of these assets reduce margin, we recognize the needs of our clients and communities and are glad to have been able to provide support through this program."

Non-interest income up from second quarter of 2019

Premier's non-interest income in the second quarter of 2020 was $23.0 million compared with $10.5 million in the second quarter of 2019. Results for the second quarter of 2020 included three months of income from UCFC compared to none in 2019.

Mortgage banking income increased to $9.9 million in the second quarter of 2020 from $2.1 million in the second quarter of 2019. Gains from the sale of mortgage loans increased to $11.5 million in the second quarter of 2020 from $1.8 million in the second quarter of 2019. Saleable originations were $305.7 million in the second quarter of 2020 compared to $66.4 million in the second quarter of 2019. Mortgage loan servicing revenue increased to $1.9 million in the second quarter of 2020 from $0.9 million in the second quarter of 2019. Amortization of mortgage servicing rights increased to $2.2 million in the second quarter of 2020 from $0.4 million in the second quarter of 2019. Premier had a negative change in the valuation adjustment in mortgage servicing assets of $1.4 million in the second quarter of 2020 compared with a negative adjustment of $0.2 million in the second quarter of 2019. The year-over-year change for the second quarter is primarily due to increased prepay speeds in the current down rate environment.

For the second quarter of 2020, service fees and other charges were $5.6 million, up from $3.3 million in the second quarter of 2019. Commissions from the sale of insurance products were $4.0 million, up from $3.6 million in the second 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 $1.8 million in the second quarter of 2020, up from $0.7 million in the second quarter of 2019.

"Each of our non-interest income business lines positively contributed to profitability and earnings," said Hileman. "Mortgage banking was especially strong, including $11.5 million of gains on sale. These results helped emphasize the value of our diverse revenue sources and the ability to hedge against net interest margin compression."

Non-interest expenses up from second quarter of 2019

Total non-interest expense was $38.0 million in the second quarter of 2020, or $35.9 million excluding $2.1 million of acquisition related charges, up from $24.2 million in the second quarter of 2019. Results for the second quarter of 2020 included three months of expenses from UCFC compared to none in 2019. Compensation and benefits increased to $19.6 million in the second quarter of 2020, compared to $14.4 million in the second quarter of 2019. Occupancy expense was $4.1 million in the second quarter of 2020, up from $2.3 million in the second quarter of 2019. Data processing cost was $3.8 million in the second quarter of 2020, up from $2.3 million in the second quarter of 2019. Amortization of intangibles was $1.8 million in the second quarter of 2020, up from $0.3 million in the second quarter of 2019. Other non-interest expense was $5.0 million in the second quarter of 2020, up from $4.3 million in the second quarter of 2019.

Credit quality

Non-performing loans totaled $39.5 million at June 30, 2020, an increase from $32.6 million at March 31, 2020, and an increase from $15.3 million at June 30, 2019, due to the UCFC merger. In addition, Premier had $0.5 million of OREO at June 30, 2020, compared to none at June 30, 2019. Accruing troubled debt restructured loans were $7.9 million at June 30, 2020, compared with $10.3 million at June 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 second 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 second quarter results include net loan recoveries of $828,000 and a total provision expense of $1.9 million compared with net loan recoveries of $488,000 and a total provision expense of $197,000 for the same period in 2019. The allowance for credit loss on loans as a percentage of total loans was 1.62% at June 30, 2020, or 1.76% excluding PPP loans, compared with 1.68% at March 31, 2020, and 1.10% at June 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 June 30, 2020, Premier Bank had issued pandemic related deferrals for $740 million of commercial loans and $73 million of retail loans.

"We continued to build our reserves during this time of economic downturn," said Paul D. Nungester, CFO of Premier. "Including the purchase accounting marks from the UCFC acquisition, our coverage ratio of allowance to loans is 2.05%, excluding PPP loans. Coupled with our solid capital levels, we believe this puts us in a position of strength during the current uncertain credit cycle."

Year-To-Date Results

For the six-month period ended June 30, 2020, net income totaled $6.6 million, or $0.19 per diluted common share, compared to $23.7 million, or $1.19 per diluted common share for the six months ended June 30, 2019. Results for the first half of 2020 included five 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 $48.2 million, which included $25.9 million related to acquisition accounting for an after-tax cost of $20.5 million, or $0.59 per diluted common share. The first half of 2019 included a provision expense of $495,000, which had an after-tax cost of $391,000, or $0.02 per diluted common share, and no acquisition impact. Additionally, the current year's results include the impact of $13.6 million of acquisition-related charges, which had an after-tax cost of $11.1 million, or $0.32 per diluted common share. Excluding the impact of acquisition-related provision and charges, earnings for the first half of 2020 were $38.2 million, or $1.11 per diluted common share.

Net interest income was $99.8 million for the first six months of 2020 compared with $57.3 million in the first six months of 2019. Average interest-earning assets increased to $5.56 billion in the first six months of 2020 compared to $2.89 billion in the first six months of 2019. Net interest margin for the first six months of 2020 was 3.63%, down 40 basis points from the 4.03% margin reported in the six-month period ended June 30, 2019. The 2020 results include the impact of acquisition marks and related accretion for the UCFC acquisition. Interest income includes $2.5 million of accretion and interest expense includes $2.5 million of accretion, which combined added 18 basis points of net interest margin. The second quarter results also include the impact of PPP loans. Interest income includes $1.6 million on average balances of $149.1 million, which reduced net interest margin by three basis points. Excluding the impact of acquisition marks and PPP loans, net interest margin was 3.48% for the first half of 2020.

Non-interest income for the first six months of 2020 was $37.0 million compared to $21.3 million during the same period of 2019. Service fees and other charges were $10.8 million for the first six months of 2020, up from $6.3 million during the same period of 2019. Mortgage banking income was $10.7 million for the first six months of 2020, up from $4.0 million during the same period of 2019. Insurance commissions were $9.2 million for the first six months of 2020 compared with $7.7 million for the same period of 2019. Wealth management income was $2.9 million for the first six months of 2020, up from $1.4 million during the same period of 2019.

Non-interest expense was $80.3 million for the first six months of 2020, or $66.7 million excluding acquisition-related charges, up from $49.1 million for the same period of 2019. Compensation and benefits expense was $37.2 million for the first six months of 2020 compared with $28.5 million during the same period of 2019. Expenses also included increases in occupancy of $3.3 million, data processing of $2.3 million and amortization of intangibles of $2.5 million.

Total assets at $7.01 billion

Total assets at June 30, 2020, were $7.01 billion compared to $6.54 billion at March 31, 2020, and $3.28 billion at June 30, 2019. Gross loans receivable (excluding loans held for sale) were $5.46 billion at June 30, 2020, compared to $5.11 billion at March 31, 2020, and $2.62 billion at June 30, 2019. At June 30, 2020, gross loans receivable grew $2.83 billion, or 108% from a year ago, including $2.30 billion from the UCFC merger and $533 million organically, including $434 million of PPP loans. Also, at June 30, 2020, goodwill and other intangible assets totaled $351.7 million compared to $353.1 million at March 31, 2020, and $102.4 million at June 30, 2019, with the increase attributable to the UCFC merger.

Total deposits at June 30, 2020, were $5.76 billion compared with $4.99 billion at March 31, 2020, and $2.68 billion at June 30, 2019. At June 30, 2020, total deposits grew $3.08 billion, or 115% from a year ago, including $2.08 billion from the UCFC merger and $997 million organically.

Total stockholders' equity was $941.0 million at June 30, 2020, compared to $916.8 million at March 31, 2020, and $407.2 million at June 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 June 30, 2020, 570,000 common shares remained available for repurchase under the Company's existing repurchase program.

Dividend to be paid August 21

The Board of Directors declared a quarterly cash dividend of $0.22 per common share payable August 21, 2020, to shareholders of record at the close of business on August 14, 2020. The dividend represents an annual dividend of 5.42 percent based on the Premier common stock closing price on July 27, 2020. Premier has approximately 37,296,613 common shares outstanding.

Conference call

Premier Financial Corp. will host a conference call at 8:30 a.m. ET on Wednesday, July 29, 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/pfc200729.html. The replay of the conference call will be available at www.PremierFinCorp.com until July 28, 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 2 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 March 31, 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 June 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. June 30, December 31,

(in thousands) 2020 2019

AssetsCash and cash equivalentsCash and amounts due from depository institutions $ 78,213 $ 46,254

Interest-bearing deposits 114,468 85,000

192,681 131,254

Securities available-for sale, carried at fair 567,527 283,448 value Loans 5,457,238 2,777,564

Allowance for credit losses - loans (88,555 ) (31,243 )

Loans, net 5,368,683 2,746,321

Loans held for sale 160,467 18,008

Mortgage servicing rights 14,646 10,267

Accrued interest receivable 23,694 10,244

Federal Home Loan Bank stock 45,955 11,915

Bank Owned Life Insurance 143,097 75,544

Office properties and equipment 59,533 39,563

Real estate and other assets held for sale 573 100

Goodwill 317,948 100,069

Core deposit and other intangibles 33,731 3,772

Other assets 85,276 38,487

Total Assets $ 7,013,811 $ 3,468,992

Liabilities and Stockholders' EquityNon-interest-bearing deposits $ 1,454,842 $ 630,359

Interest-bearing deposits 4,305,001 2,239,966

Total deposits 5,759,843 2,870,325

Advances from FHLB and PPPLF 139,327 85,063

Notes payable and other interest-bearing 6,948 2,999 liabilitiesSubordinated debentures 36,083 36,083

Advance payments by borrowers for tax and 31,470 5,491 insuranceReserve for credit losses - unfunded commitments 6,819 571

Other liabilities 92,353 42,293

Total Liabilities 6,072,843 3,042,825

Stockholders' EquityPreferred stock - -

Common stock, net 306 127

Additional paid-in-capital 688,574 161,955

Accumulated other comprehensive income (loss) 14,564 4,595

Retained earnings 316,321 329,175

Treasury stock, at cost (78,797 ) (69,685 )

Total stockholders' equity 940,968 426,167

Total Liabilities and Stockholders' Equity $ 7,013,811 $ 3,468,992



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

June 30, June 30,

(in thousands, except per 2020 2019 2020 2019share amounts)Interest Income:Loans $ 58,796 $ 32,660 $ 110,256 $ 63,874

Investment securities 2,923 2,138 5,641 4,343

Interest-bearing deposits 79 260 309 545

FHLB stock dividends 651 183 766 398

Total interest income 62,449 35,241 116,972 69,160

Interest Expense:Deposits 7,435 5,581 15,206 10,586

FHLB advances and other 516 304 1,523 580

Subordinated debentures 179 350 452 714

Notes Payable 15 17 24 21

Total interest expense 8,145 6,252 17,205 11,901

Net interest income 54,304 28,989 99,767 57,259

Provision for credit losses - 1,868 282 45,655 494loansProvision (benefit) for 1,107 (85 ) 2,565 1credit losses - unfundedcommitmentsTotal provision for credit 2,975 197 48,220 495lossesNet interest income after 51,329 28,792 51,547 56,764provision for loan lossesNon-interest Income:Service fees and other 5,614 3,301 10,797 6,308chargesMortgage banking income 9,868 2,137 10,716 3,978

Gain on sale of non-mortgage - 21 234 110loansGain (loss) on sale of (2 ) - (2 ) -securitiesInsurance commissions 4,005 3,616 9,160 7,731

Wealth management income 1,802 660 2,893 1,358

Income from Bank Owned Life 838 527 1,619 919InsuranceOther non-interest income 890 224 1,597 895

Total Non-interest Income 23,015 10,486 37,014 21,299

Non-interest Expense:Compensation and benefits 19,575 14,398 37,160 28,483

Occupancy 4,128 2,304 7,859 4,545

FDIC insurance premium 411 258 903 531

Financial institutions tax 1,116 556 1,950 1,112

Data processing 3,805 2,267 6,845 4,564

Amortization of intangibles 1,809 276 3,054 575

Acquisition related charges 2,099 - 13,585 -

Other non-interest expense 5,041 4,261 8,937 9,290

Total Non-interest Expense 37,984 24,320 80,293 49,100

Income before income taxes 36,360 14,958 8,268 28,963

Income tax expense 7,303 2,759 1,693 5,282

Net Income $ 29,057 $ 12,199 $ 6,575 $ 23,681

Earnings per common share:Basic $ 0.78 $ 0.62 $ 0.19 $ 1.19

Diluted $ 0.78 $ 0.61 $ 0.19 $ 1.19

Average Shares Outstanding:Basic 37,290 19,780 34,484 19,897

Diluted 37,324 19,860 34,545 19,976



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

June 30, June 30,

(dollars inthousands, 2020 2019 % change 2020 2019 % changeexcept per sharedata)Summary ofOperations Tax-equivalent $ 62,705 $ 35,490 76.7 % $ 117,480 $ 69,656 68.7 %interest income(2)Interest expense 8,145 6,252 30.3 17,205 11,901 44.6

Tax-equivalent 54,560 29,238 86.6 100,275 57,755 73.6 net interestincome (2)Provision for 2,975 282 955.0 48,220 494 9,661.1 credit lossesCore provision 2,975 197 1,410.2 22,270 495 4,399.0 for creditlosses (4)Investment (2 ) - NM (2 ) - NM securities gains(losses)Non-interestincome 23,017 10,486 119.5 37,016 21,299 73.8 (excludingsecurities gains/losses)Non-interest 37,984 24,235 56.7 80,293 49,100 63.5 expenseCore 35,885 24,320 47.6 66,709 49,100 35.9 non-interestexpense (4)Income tax 7,303 2,759 164.7 1,693 5,282 (67.9 )expenseNet income 29,057 12,199 138.2 6,575 23,681 (72.2 )

Core net income 30,715 12,199 151.8 38,185 23,681 61.2 (4)Tax equivalent 256 249 2.8 508 496 2.4 adjustment (2)At Period EndAssets 7,013,811 3,277,552 114.0

Earning assets 6,345,655 2,980,243 112.9

Loans 5,457,238 2,624,219 108.0

Allowance for 88,555 28,934 206.1 credit losses -loansDeposits 5,759,843 2,680,637 114.9

Stockholders' 940,968 407,216 131.1 equityAverage BalancesAssets 7,005,783 3,223,997 117.3 6,185,668 3,203,504 93.1

Earning assets 6,247,037 2,912,278 114.5 5,559,542 2,892,695 92.2

Loans 5,389,805 2,561,341 110.4 4,862,410 2,539,312 91.5

Deposits and 5,963,127 2,781,216 114.4 5,232,503 2,761,921 89.5 interest-bearingliabilitiesDeposits 5,490,986 2,678,060 105.0 4,872,267 2,660,109 83.2

Stockholders' 932,793 398,612 134.0 858,894 396,875 116.4 equityStockholders' 13.31 % 12.36 % 7.7 13.89 % 12.39 % 12.1 equity / assetsPer Common ShareDataNet Income(Loss)Basic $ 0.78 $ 0.62 25.8 $ 0.19 $ 1.19 (84.0 )

Diluted 0.78 0.61 27.9 0.19 1.19 (84.0 )

Core diluted (4) 0.82 0.61 34.4 $ 1.06 $ 1.19 (10.9 )

Dividends 0.22 0.19 15.8 0.44 0.38 15.8

Market Value:High $ 20.11 $ 30.44 (33.9 ) $ 31.95 $ 31.30 2.1

Low 12.95 26.59 (51.3 ) 11.50 24.12 (52.3 )

Close 17.67 28.57 (38.2 ) 17.67 28.57 (38.2 )

Common Book 25.23 20.65 22.2 25.23 20.65 22.2 ValueTangible Common 15.80 15.46 2.2 15.80 15.46 2.2 Book Value (1)Shares 37,296 19,723 89.1 37,296 19,723 89.1 outstanding, endof period (000s)PerformanceRatios(annualized)Tax-equivalent 3.51 % 4.03 % (12.9 ) 3.63 % 4.03 % (10.0 )net interestmargin (2)Return on 1.67 % 1.52 % 9.7 0.21 % 1.49 % (85.7 )average assetsCore return on 1.76 % 1.52 % 16.2 1.24 % 1.49 % (16.7 )average assets(4)Return on 12.53 % 12.28 % 2.0 1.54 % 12.03 % (87.2 )average equityCore return on 13.24 % 12.28 % 7.9 8.94 % 12.03 % (25.7 )average equity(4)Efficiency ratio 48.96 % 61.01 % (19.7 ) 58.48 % 62.11 % (5.8 )(3)Core efficiency 46.26 % 61.22 % (24.4 ) 48.59 % 62.11 % (21.8 )ratio (4)Effective tax 20.09 % 18.44 % 8.9 20.48 % 18.24 % 12.3 rateDividend payout 26.83 % 30.65 % (12.5 ) 41.51 % 31.93 % 30.0 ratio (core) 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) 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 meaningful

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

June 30, June 30,

Mortgage Banking 2020 2019 2020 2019

Revenue from salesand servicing ofmortgage loans:Gain from sale of $ 11,530 $ 1,775 $ 16,432 $ 3,076 mortgage loansMortgage loanservicing revenue(expense):Mortgage loan 1,888 943 3,482 1,882 servicing revenueAmortization of (2,181 ) (391 ) (3,344 ) (677 )mortgage servicingrightsMortgage servicing (1,369 ) (190 ) (5,854 ) (303 )rights valuationadjustments (1,662 ) 362 (5,716 ) 902

Total revenue from $ 9,868 $ 2,137 $ 10,716 $ 3,978 sale and servicingof mortgage loans Mortgage servicingrights:Balance at beginning $ 20,761 $ 10,411 $ 10,801 $ 10,419 of periodLoans sold, 2,454 438 3,830 716 servicing retainedMortgage servicing - - 9,747 - rights acquiredAmortization (2,181 ) (391 ) (3,344 ) (677 )

Carrying valuebefore valuation 21,034 10,458 21,034 10,458 allowance at end ofperiodValuation allowance:Balance at beginning (5,019 ) (413 ) (534 ) (300 )of periodImpairment recovery (1,369 ) (190 ) (5,854 ) (303 )(charges)Balance at end of (6,388 ) (603 ) (6,388 ) (603 )periodNet carrying value $ 14,646 $ 9,855 $ 14,646 $ 9,855 at end of period Goodwill andPurchase PriceAccountingDeal Value:Shares issued (000s) 17,926

1/31/20 Price $ 29.39

Stock value 526,850

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

Allocation:Cash and cash $ 52,580 equivalentsSecurities 262,753 (1) available-for saleNet loans, including 2,340,701 loans held for sale (2)and allowanceFederal Home Loan 12,753 Bank stockOffice properties 20,253 (3) and equipmentCore deposit and 33,014 (4) other intangiblesBank Owned Life 65,934 InsuranceMortgage servicing 9,747 (5) rightsOther assets 35,423

Non-interest-bearing (430,921 )depositsInterest-bearing (1,651,669 ) (6) depositsAdvances from (381,000 )Federal Home LoanBankOther 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 fivemonths 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 be amortizedagainst interest income over ~5 years, $19.1 million elimination of allowanceand $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 June 30,

(dollars in thousands)

2020 2019

Average Yield Average Yield

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

Interest-earningassets:Loans receivable $ 5,389,805 $ 58,819 4.39 % $ 2,561,341 $ 32,683 5.12 %

Securities 523,360 3,156 2.43 % (3) 296,926 2,364 3.19 % (3)

Interest Bearing 260,586 79 0.12 % 41,934 260 2.49 %DepositsFHLB stock 73,286 651 3.57 % 12,077 183 6.08 %

Total interest-earning 6,247,037 62,705 4.04 % 2,912,278 35,490 4.89 %assetsNon-interest-earning 758,746 311,719assetsTotal assets $ 7,005,783 $ 3,223,997

Deposits andInterest-bearingliabilities:Interest bearing $ 4,144,699 $ 7,435 0.72 % $ 2,093,751 $ 5,581 1.07 %depositsFHLB advances and 420,784 516 0.49 % 62,466 304 1.95 %otherSubordinated 36,083 179 2.00 % 36,083 350 3.89 %debenturesNotes payable 15,274 15 0.39 % 4,607 17 1.48 %

Total interest-bearing 4,616,840 8,145 0.71 % 2,196,907 6,252 1.14 %liabilitiesNon-interest bearing 1,346,287 - - 584,309 - - depositsTotal including 5,963,127 8,145 0.55 % 2,781,216 6,252 0.90 %non-interest-bearingdepositsOther 109,863 44,169non-interest-bearingliabilitiesTotal liabilities 6,072,990 2,825,385

Stockholders' equity 932,793 398,612

Total liabilities and $ 7,005,783 $ 3,223,997stockholders' equityNet interest income; $ 54,560 3.33 % $ 29,238 3.75 %interest rate spreadNet interest margin 3.51 % 4.03 %(4)Averageinterest-earning 135 % 133 %assets to averageinterest bearingliabilities Six Months Ended June 30,

2020 2019

Average Yield Average Yield

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

Interest-earningassets:Loans receivable $ 4,862,410 $ 110,304 4.55 % $ 2,539,312 $ 63,921 5.08 %

Securities 482,839 6,100 2.54 % (3) 297,261 4,792 3.25 % (3)

Interest Bearing 164,662 309 0.38 % 43,343 545 2.54 %DepositsFHLB stock 49,631 766 3.10 % 12,779 398 6.28 %

Total interest-earning 5,559,542 117,479 4.24 % 2,892,695 69,656 4.86 %assetsNon-interest-earning 626,126 310,809assetsTotal assets $ 6,185,668 $ 3,203,504

Deposits andInterest-bearingliabilities:Interest bearing $ 3,750,226 $ 15,206 0.81 % $ 2,077,387 $ 10,586 1.03 %depositsFHLB advances and 315,337 1,523 0.97 % 60,710 580 1.93 %otherSubordinated 36,083 452 2.51 % 36,083 714 3.99 %debenturesNotes payable 8,816 24 0.55 % 5,019 21 0.84 %

Total interest-bearing 4,110,462 17,205 0.84 % 2,179,199 11,901 1.10 %liabilitiesNon-interest bearing 1,122,041 - - 582,722 - - depositsTotal including 5,232,503 17,205 0.66 % 2,761,921 11,901 0.87 %non-interest-bearingdepositsOther 94,271 44,708non-interest-bearingliabilitiesTotal liabilities 5,326,774 2,806,629

Stockholders' equity 858,894 396,875

Total liabilities and $ 6,185,668 $ 3,203,504stockholders' equityNet interest income; $ 100,274 3.40 % $ 57,755 3.76 %interest rate spreadNet interest margin 3.63 % 4.03 %(4)Averageinterest-earning 135 % 133 %assets to averageinterest bearingliabilities 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 inthousands, 2nd Qtr 2020 1st Qtr 2020 4th Qtr 2019 3rd Qtr 2019 2nd Qtr 2019except per sharedata)Summary ofOperationsTax-equivalent $ 62,705 $ 54,773 $ 36,473 $ 35,922 $ 35,490 interest income(1)Interest expense 8,145 9,059 6,743 6,791 6,252

Tax-equivalent 54,560 45,714 29,730 29,131 29,238 net interestincome (1)Provision for 2,975 45,244 1,123 1,266 197 credit lossesCore provision 2,975 19,295 1,123 1,266 197 for creditlosses (3)Investment (2 ) - 13 11 - securities gains(losses)Non-interestincome 23,017 13,999 11,803 11,831 10,486 (excludingsecurities gains/losses)Non-interest 37,984 42,310 24,721 23,264 24,320 expenseCore 35,885 30,824 23,839 22,724 24,320 non-interestexpense (3)Income tax 7,303 (5,610 ) 2,953 3,033 2,759 expense(benefit)Net income 29,057 (22,482 ) 12,517 13,171 12,199 (loss)Core net income 30,715 7,470 13,214 13,598 12,199 (3)Tax equivalent 256 251 232 239 249 adjustment (1)At Period EndTotal assets $ 7,013,811 $ 6,538,942 $ 3,468,992 $ 3,350,724 $ 3,277,552

Earning assets 6,345,655 5,889,186 3,175,935 3,045,659 2,980,243

Loans 5,457,238 5,113,917 2,777,564 2,665,300 2,624,219

Allowance for 88,555 85,859 31,243 30,250 28,934 loan lossesDeposits 5,759,843 4,994,148 2,870,325 2,760,615 2,680,637

Stockholders' 940,968 916,843 426,167 418,046 407,216 equityStockholders' 13.42 % 14.02 % 12.29 % 12.48 % 12.42 %equity / assetsGoodwill 317,948 317,520 100,069 100,069 98,569

Average BalancesTotal assets $ 7,005,783 $ 5,357,598 $ 3,425,097 $ 3,303,013 $ 3,223,997

Earning assets 6,247,037 4,862,532 3,107,224 2,985,498 2,912,278

Loans 5,389,805 4,317,857 2,688,519 2,624,314 2,561,341

Deposits and 5,963,127 4,488,003 2,954,049 2,843,079 2,781,216 interest-bearingliabilitiesDeposits 5,490,986 4,240,053 2,830,043 2,718,632 2,678,060

Stockholders' 932,793 787,519 420,352 411,041 398,612 equityStockholders' 13.31 % 14.70 % 12.27 % 12.44 % 12.36 %equity / assetsPer Common ShareDataNet Income(Loss):Basic $ 0.78 $ (0.71 ) $ 0.63 $ 0.67 $ 0.62

Diluted 0.78 (0.71 ) 0.63 0.66 0.61

Core diluted (3) 0.82 0.24 0.66 0.68 0.61

Dividends 0.22 0.22 0.22 0.19 0.19

Market Value:High $ 20.11 $ 32.05 $ 32.39 $ 29.44 $ 30.44

Low 12.95 10.98 27.77 25.50 26.59

Close 17.67 14.74 31.32 28.97 28.57

Common Book 25.23 24.58 21.60 21.19 20.65 ValueShares 37,296 37,288 19,730 19,729 19,723 outstanding, endof period (000s)PerformanceRatios(annualized)Tax-equivalent 3.51 % 3.78 % 3.80 % 3.88 % 4.03 %net interestmargin (1)Return on 1.67 % -1.69 % 1.45 % 1.58 % 1.52 %average assetsCore return on 1.76 % 0.56 % 1.53 % 1.63 % 1.52 %average assets(3)Return on 12.53 % -11.48 % 11.81 % 12.71 % 12.28 %average equityCore return on 13.24 % 3.82 % 12.47 % 13.12 % 12.28 %average equity(3)Efficiency ratio 48.96 % 70.86 % 59.52 % 56.79 % 61.22 %(2)Core efficiency 46.26 % 51.62 % 57.40 % 55.48 % 61.22 %ratio (3)Effective tax 20.09 % 19.97 % 19.09 % 18.72 % 18.44 %rateCommon dividend 26.83 % 91.67 % 34.92 % 28.36 % 30.65 %payout ratio(core) 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 2nd Qtr 2020 1st Qtr 2020 4th Qtr 2019 3rd Qtr 2019 2nd Qtr 2019thousands, exceptper share data)Loan PortfolioCompositionOne to four family $ 1,226,106 $ 1,265,901 $ 324,773 $ 330,369 $ 322,123 residential realestateConstruction 509,548 521,442 305,305 308,061 335,847

Commercial real 2,266,189 2,200,266 1,506,026 1,430,919 1,411,463 estateCommercial 1,244,549 897,865 578,071 537,806 530,528

Consumer finance 146,139 137,679 37,649 36,644 35,350

Home equity and 290,459 301,146 122,864 123,871 125,860 improvementTotal loans 5,682,990 5,324,299 2,874,688 2,767,670 2,761,171

Less:Undisbursed loan 221,137 206,236 94,865 100,260 134,794 fundsDeferred loan 4,615 4,146 2,259 2,110 2,158 origination feesAllowance for credit 88,555 85,859 31,243 30,250 28,934 losses - loansNet Loans $ 5,368,683 $ 5,028,058 $ 2,746,321 $ 2,635,050 $ 2,595,285

Allowance for creditlosses - loansBeginning allowance $ 85,859 $ 31,243 $ 30,250 $ 28,934 $ 28,164

CECL adoption - 2,354 - - -

Acquisition related - 25,949 - - - allowance/provision(non PCD)Acquisition related - 7,698 - - - allowance/goodwill(PCD)Provision for credit 1,868 17,837 1,084 1,327 282 losses - loansNet recoveries 828 778 (91 ) (11 ) 488 (charge-offs)Ending allowance $ 88,555 $ 85,859 $ 31,243 $ 30,250 $ 28,934

Credit QualityTotal non-performing $ 39,470 $ 32,593 $ 13,437 $ 14,677 $ 15,334 loans (1)Real estate owned 573 548 100 - - (REO)Total non-performing $ 40,043 $ 33,141 $ 13,559 $ 14,677 $ 15,334 assets (2)Net charge-offs (828 ) (778 ) 91 11 (488 )(recoveries) Restructured loans, 7,916 7,474 8,427 10,334 10,308 accruing (3) Allowance for credit 1.62 % 1.68 % 1.12 % 1.13 % 1.10 %losses - loans /loansAllowance for creditlosses - loans / 221.15 % 259.07 % 230.42 % 206.10 % 188.69 %non-performingassetsAllowance for credit 224.36 % 263.43 % 232.51 % 206.10 % 188.69 %losses - loans /non-performing loansNon-performing 0.73 % 0.65 % 0.49 % 0.55 % 0.58 %assets / loans plusREONon-performing 0.57 % 0.51 % 0.39 % 0.44 % 0.47 %assets / totalassetsNet charge-offs / -0.06 % -0.07 % 0.01 % 0.00 % -0.08 %average loans(annualized) Deposit BalancesNon-interest-bearing $ 1,454,842 $ 1,041,315 $ 630,359 $ 604,129 $ 584,735 demand depositsInterest-bearing 2,361,486 2,069,723 1,198,012 1,124,208 1,088,694 demand deposits andmoney marketSavings deposits 671,650 606,508 303,166 294,594 304,051

Retail time deposits 1,078,758 1,091,038 631,253 634,737 610,345 less than $250,000Retail time deposits 193,107 185,564 107,535 102,947 92,812 greater than$250,000Total deposits $ 5,759,843 $ 4,994,148 $ 2,870,325 $ 2,760,615 $ 2,680,637

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

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 2,266,189 2,244,412 1,040 0.0 % 20,737 0.9 %real 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 290,459 285,858 2,237 0.8 % 2,364 0.8 %andimprovementTotal loans $ 5,682,990 $ 5,631,558 $ 11,001 0.2 % $ 40,431 0.7 %

March 31, 2020One to fourfamily $ 1,265,901 $ 1,253,304 $ 5,890 0.5 % $ 6,707 0.5 %residentialreal estateConstruction 521,442 521,442 - 0.0 % - 0.0 %

Commercial 2,200,266 2,180,660 220 0.0 % 19,386 0.9 %real estateCommercial 897,865 893,605 299 0.0 % 3,961 0.4 %

Consumer 137,679 135,727 712 0.5 % 1,240 0.9 %financeHome equity 301,146 296,330 3,517 1.2 % 1,299 0.4 %andimprovementTotal loans $ 5,324,299 $ 5,281,068 $ 10,638 0.2 % $ 32,593 0.6 %

June 30, 2019One to fourfamily $ 322,123 $ 317,671 $ 1,258 0.4 % $ 3,194 1.0 %residentialreal estateConstruction 335,847 335,847 - 0.0 % - 0.0 %

Commercial 1,411,463 1,403,096 134 0.0 % 8,233 0.6 %real estateCommercial 530,528 527,023 168 0.0 % 3,337 0.6 %

Consumer 35,350 35,099 231 0.7 % 20 0.1 %financeHome equity 125,860 124,215 1,095 0.9 % 550 0.4 %andimprovementTotal loans $ 2,761,171 $ 2,742,951 $ 2,886 0.1 % $ 15,334 0.6 %



Non-GAAP ReconciliationsPremier Financial Corp. (In thousands,except per 2nd Qtr 2020 1st Qtr 2020 4th Qtr 2019 3rd Qtr 2019 2nd Qtr 2019 1st Qtr 2019share andratio data)Acquisitionrelated $ 2,099 $ 11,486 $ 882 $ 540 $ - $ - charges(pre-tax)Less: Taxbenefit of 441 2,034 185 113 - - acquisitionrelatedchargesAcquisitionrelated $ 1,658 $ 9,452 $ 697 $ 427 $ - $ - charges(after-tax) Total $ 37,984 $ 42,310 $ 24,721 $ 23,264 $ 24,320 $ 24,780 non-interestexpensesLess:Acquisition 2,099 11,486 882 540 - - relatedcharges(pre-tax)Core $ 35,885 $ 30,824 $ 23,839 $ 22,724 $ 24,320 $ 24,780 non-interestexpenses Acquisitionrelated $ - $ 25,949 $ - $ - $ - $ - provision(pre-tax)Less: Taxbenefit of - 5,449 - - - - acquisitionrelatedprovisionAcquisitionrelated $ - $ 20,500 $ - $ - $ - $ - provision(after-tax) Provision for $ 2,975 $ 45,244 $ 1,123 $ 1,266 $ 197 $ 298 credit lossesLess:Acquisition - 25,949 - - - - relatedprovision(pre-tax)Core provision $ 2,975 $ 19,295 $ 1,123 $ 1,266 $ 197 $ 298 for creditlosses Tax-equivalent $ 54,560 $ 45,714 $ 29,730 $ 29,131 $ 29,238 $ 28,517 net interestincomeNon-interestincome 23,017 13,999 11,803 11,831 10,486 10,813 (excludingsecuritiesgains/losses)Total revenues 77,577 59,713 41,533 40,962 39,724 39,330

Core $ 35,885 $ 30,824 $ 23,839 $ 22,724 $ 24,320 $ 24,780 non-interestexpensesCore 46.26 % 51.62 % 57.40 % 55.48 % 61.22 % 63.01 %efficiencyratio Income (loss) $ 36,360 $ (28,092 ) $ 15,470 $ 16,204 $ 14,958 $ 14,005 before incometaxesAdd: Provision 2,975 45,244 1,123 1,266 197 298 for creditlossesPre-tax 39,335 17,152 16,593 17,470 15,155 14,303 pre-provisionincomeAdd:Acquisition 2,099 11,486 882 540 - - relatedcharges(pre-tax)Core pre-tax $ 41,434 $ 28,638 $ 17,475 $ 18,010 $ 15,155 $ 14,303 pre-provisionincomeAverage total $ 7,005,783 $ 5,357,598 $ 3,425,097 $ 3,303,013 $ 3,223,997 $ 3,183,012 assetsCore pre-taxpre-provision 2.38 % 2.15 % 2.02 % 2.16 % 1.89 % 1.82 %return onaverage assets Net income $ 29,057 $ (22,482 ) $ 12,517 $ 13,171 $ 12,199 $ 11,482 (loss)Add:Acquisition - 20,500 - - - - relatedprovision(after-tax)Add:Acquisition 1,658 9,452 697 427 - - relatedcharges(after-tax)Core net $ 30,715 $ 7,470 $ 13,214 $ 13,598 $ 12,199 $ 11,482 income Diluted shares 37,324 31,642 19,895 19,875 19,860 20,095 - ReportedAdd: Dilutiveshares for - 121 - - - - core netincomeDiluted shares 37,324 31,763 19,895 19,875 19,860 20,095 - CoreCore diluted $ 0.82 $ 0.24 $ 0.66 $ 0.68 $ 0.61 $ 0.57 EPS Average total $ 7,005,783 $ 5,357,598 $ 3,425,097 $ 3,303,013 $ 3,223,997 $ 3,183,012 assetsCore return on 1.76 % 0.56 % 1.53 % 1.63 % 1.52 % 1.46 %average assets Average total $ 932,793 $ 787,519 $ 420,352 $ 411,041 $ 398,612 $ 395,138 equityCore return on 13.24 % 3.82 % 12.47 % 13.12 % 12.28 % 11.78 %average equity 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20200728005992/en/

CONTACT: Paul Nungester EVP and CFO 419.785.8700 PNungester@first-fed.com