Business Wire | Jan 26, 2021 04:16PM EST

Premier Financial Corp. Announces Strong Quarterly and Annual Earnings and Dividend Increase

Jan. 26, 2021

DEFIANCE, Ohio--(BUSINESS WIRE)--Jan. 26, 2021--Premier Financial Corp. (Nasdaq: PFC) ("Premier" or the "Company") announced today 2020 fourth quarter and year-end results including solid core profitability. On a GAAP basis, net income for the fourth quarter of 2020 was $30.8 million, or $0.82 per diluted common share, compared to net income of $12.5 million, or $0.63 per diluted common share, for the fourth quarter of 2019. Net income for the year ended December 31, 2020, was $63.1 million, or $1.75 per diluted common share, compared to $49.4 million, or $2.48 per diluted common share, for the year ended December 31, 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 $2.2 million and $19.5 million of acquisition-related charges for the three and twelve months ended December 31, 2020, respectively, which had after-tax costs of $1.7 million and $15.8 million, respectively, or $0.05 and $0.44 per diluted common share, respectively. The three and twelve months ended December 31, 2019, included $0.9 million and $1.4 million of acquisition-related charges, respectively, which had after-tax costs of $0.7 million and $1.1 million, respectively, or $0.03 and $0.06 per diluted common share, respectively. Additionally, the current year's twelve month provision expense of $44.3 million included $25.9 million related to acquisition accounting for an after-tax cost of $20.5 million, or $0.57 per diluted common share. The full year of 2019 included a provision expense of $2.9 million and no acquisition impact. Excluding the impact of the acquisition-related provision and charges, earnings for the three and twelve months ended December 31, 2020, were $32.6 million and $99.3 million, respectively, or $0.87 and $2.76 per diluted common share, respectively.

"With core earnings per share up almost 9% from last year, we are proud to announce our eighth consecutive year of record core earnings performance," said Donald P. Hileman, CEO of Premier. "Improving credit conditions and the successful completion of integration efforts in the fourth quarter paved the way to the strong finish for the year."

CEO transition

The Boards of Directors and Donald P. Hileman set the date for his transition from CEO of Premier Financial Corp. and Premier Bank to Executive Chairman of both Boards of Directors at March 31, 2021, consistent with plans outlined in the Agreement and Plan of Merger between the Company and UCFC, dated September 9, 2019. On April 1, 2021, Gary M. Small will become CEO and President of both Premier Financial Corp. and Premier Bank and remain a member of the Boards of Directors.

"Don's strong leadership as CEO over the past seven years and through the UCFC merger has been instrumental in creating a strong foundation for the continued success of the company," said Gary M. Small, President of Premier. "We've worked closely over the past 16 months, preparing to ensure this is a smooth transition."

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 fourth quarter and full year results including three and eleven 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 was completed as expected.

"The fourth quarter and full-year performance reflected the benefits of our combined organization and the ability of our team to produce top-tier results in a very challenging environment," said Small. "We are very pleased with our position as we enter 2021 and continue to implement enhancements designed to deliver a top-quality customer experience and exceptional 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 for the year ended December 31, 2020. Total gross fees for these loans totaled $14.8 million. Premier Bank recognized $3.6 million and $8.0 million as loan interest income during the three and twelve months ended December 31, 2020, respectively. During the three months ended December 31, 2020, a total of $56.4 million in loans were extinguished; and Premier Bank recognized approximately $0.8 million of accelerated fees in loan interest income.

Net interest income up compared to fourth quarter of 2019

Net interest income of $55.0 million in the fourth quarter of 2020 was up from $29.5 million in the fourth quarter of 2019. The increase over the prior year's fourth 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 fourth quarter of 2020, consistent with 3.47% in the third quarter of 2020, and down from 3.80% in the fourth quarter of 2019. Yield on interest earning assets decreased to 3.84% in the fourth quarter of 2020, down seven basis points from 3.91% in the third quarter of 2020. Total cost of funds decreased eight basis points in the fourth quarter of 2020 to 0.39% from 0.47% in the third quarter of 2020 while the total cost of interest-bearing liabilities decreased 15 basis points to 0.47% from 0.62%. The 2020 fourth quarter results include the impact of acquisition marks and related accretion for the UCFC acquisition. Interest income includes $0.7 million of accretion and interest expense includes $0.6 million of accretion, which combined added 10 basis points of net interest margin. The fourth quarter results also include the impact of PPP loans. Interest income includes $3.6 million on average balances of $426.5 million, which increased net interest margin by one basis point. Excluding the impact of acquisition marks and PPP loans, net interest margin would be 3.36% for the fourth quarter of 2020 compared to 3.41% for the third quarter of 2020.

"The beginning of PPP loan forbearances and accelerated fees in the fourth quarter allowed us to stabilize net interest margin," said Hileman. "We continue to focus our strategies on managing funding costs and excess liquidity to help mitigate the impacts to core net interest margin."

Non-interest income up from fourth quarter of 2019

Premier's non-interest income in the fourth quarter of 2020 was $18.7 million compared with $11.8 million in the fourth quarter of 2019. Results for the fourth quarter of 2020 included three months of income from UCFC compared to none in 2019.

Mortgage banking income increased to $5.4 million in the fourth quarter of 2020 from $2.7 million in the fourth quarter of 2019. Gains from the sale of mortgage loans increased to $6.1 million in the fourth quarter of 2020 from $2.0 million in the fourth quarter of 2019. Mortgage loan servicing revenue increased to $1.9 million in the fourth quarter of 2020 from $1.0 million in the fourth quarter of 2019. Amortization of mortgage servicing rights increased to $2.2 million in the fourth quarter of 2020 from $0.6 million in the fourth quarter of 2019. Premier had a negative change in the valuation adjustment in mortgage servicing assets of $0.5 million in the fourth quarter of 2020 compared with a positive adjustment of $0.2 million in the fourth quarter of 2019. The year-over-year change for the fourth quarter is primarily due to increased prepayment speeds in the current down rate environment.

For the fourth quarter of 2020, service fees and other charges were $5.8 million, up from $3.7 million in the fourth quarter of 2019. Commissions from the sale of insurance products were $3.9 million, up from $3.1 million in the fourth 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 fourth quarter of 2020, up from $1.0 million in the fourth quarter of 2019.

"We remain pleased with the strength of our performance in non-interest income," said Hileman. "While down seasonally from third quarter, mortgage banking was a significant contributor to our growth with $6.1 million in gains this quarter, up from $2.0 million last year, driven by continued exceptional residential loan origination activity and excellent gain on sale margins."

Non-interest expenses up from fourth quarter of 2019

Total non-interest expense was $41.3 million in the fourth quarter of 2020, or $39.1 million excluding $2.2 million of acquisition related charges, up from $24.7 million in the fourth quarter of 2019, or $23.8 million excluding $0.9 million of acquisition related charges. Results for the fourth quarter of 2020 included three months of expenses from UCFC compared to none in 2019. Compensation and benefits increased to $19.9 million in the fourth quarter of 2020, compared to $14.6 million in the fourth quarter of 2019. Occupancy expense was $4.5 million in the fourth quarter of 2020, up from $2.3 million in the fourth quarter of 2019. Data processing cost was $3.8 million in the fourth quarter of 2020, up from $1.8 million in the fourth quarter of 2019. Amortization of intangibles was $1.7 million in the fourth quarter of 2020, up from $0.3 million in the fourth quarter of 2019. Other non-interest expense was $7.3 million in the fourth quarter of 2020, up from $4.2 million in the fourth quarter of 2019.

FDIC insurance premiums were a $1.0 million expense in the fourth quarter of 2020, up from a $0.2 million expense in the fourth quarter of 2019. The increase in expense from prior year is largely due to the increased size of Premier Bank post-merger and the impact of PPP. 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.

Credit quality

Non-performing loans totaled $52.9 million at December 31, 2020, an increase from $48.3 million at September 30, 2020, and an increase from $13.5 million at December 31, 2019, due to the UCFC merger. In addition, Premier had $0.3 million of OREO at December 31, 2020, compared to $0.1 million at December 31, 2019. Accruing troubled debt restructured loans were $6.8 million at December 31, 2020, compared with $8.4 million at December 31, 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 fourth quarter results include net loan charge-offs of $0.7 million and a total provision credit of $6.8 million compared with net loan charge-offs of $91,000 and a total provision expense of $1.1 million for the same period in 2019. The allowance for credit loss on loans as a percentage of total loans was 1.49% at December 31, 2020, or 1.61% excluding PPP loans, compared with 1.63% at September 30, 2020, or 1.77% excluding PPP loans, and 1.12% at December 31, 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 December 31, 2020, Premier Bank had pandemic-related deferrals for $46.0 million of commercial loans, down from $434.6 million at September 30, and $7.4 million of retail loans, down from $48.2 million at September 30.

"The volatility of CECL was on display this quarter as we were able to release some reserves due to improving economic forecasts," said Paul D. Nungester, CFO of Premier. "While we continue to experience some risk migration, the pace has slowed and begun to stabilize with criticized loans down to 4.3% at year-end from 4.5% last quarter."

Annual results

For the year ended December 31, 2020, net income totaled $63.1 million, or $1.75 per diluted common share, compared to $49.4 million, or $2.48 per diluted common share for the year ended December 31, 2019. Results for the full year 2020 included eleven 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 $44.3 million, which included $25.9 million related to acquisition accounting for an after-tax cost of $20.5 million, or $0.57 per diluted common share. The full year 2019 included a total provision expense of $2.9 million and no acquisition impact. Additionally, the current year's results include the impact of $19.5 million of acquisition-related charges, which had an after-tax cost of $15.8 million, or $0.44 per diluted common share. The full year 2019 included $1.4 million of acquisition-related charges, which had an after tax cost of $1.3 million, or $0.06 per diluted common share. Excluding the impact of acquisition-related provision and charges, earnings for the full year 2020 were $99.3 million, or $2.76 per diluted common share compared to $50.7 million or $2.54 per diluted share for 2019.

Net interest income was $208.0 million for 2020 compared with $115.6 million for 2019. Average interest-earning assets increased to $5.93 billion in 2020 compared to $2.97 billion for 2019. Net interest margin for 2020 was 3.52%, down 41 basis points from the 3.93% margin reported for 2019. The 2020 results include the impact of acquisition marks and related accretion for the UCFC acquisition. Interest income includes $4.4 million of accretion and interest expense includes $3.9 million of accretion, which combined added 14 basis points of net interest margin. The 2020 results also include the impact of PPP loans. Interest income includes $8.0 million on average balances of $291.3 million, which reduced net interest margin by four basis points. Excluding the impact of acquisition marks and PPP loans, net interest margin was 3.42% for 2020.

Non-interest income for 2020 was $80.7 million compared to $45.0 million for 2019. Service fees and other charges were $21.4 million for 2020, up from $14.0 million for 2019. Mortgage banking income was $28.2 million for 2020, up from $9.5 million for 2019. Insurance commissions were $16.8 million for 2020 compared with $14.1 million for 2019. Wealth management income was $6.2 million for 2020, up from $3.1 million for 2019.

Securities gains were $1.6 million in 2020, up from $24,000 in 2019. The Company early extinguished $30.0 million of fixed rate FHLB advances in the third quarter of 2020 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 $55.0 million of mortgage-backed securities yielding approximately 1.80% at a gain of $1.4 million. The proceeds from the sales were 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 is expected to increase pretax income approximately $425,000 over the subsequent 12 months and enhance net interest margin by one basis point.

Non-interest expense was $165.2 million for 2020, or $145.7 million excluding acquisition-related charges, up from $97.1 million, or $95.7 million excluding acquisition-related charges, for the same period of 2019. Compensation and benefits expense was $77.2 million for 2020 compared with $57.2 million for 2019. Expenses also included increases in occupancy of $7.3 million, FDIC premiums of $2.9 million, data processing of $6.8 million, amortization of intangibles of $5.3 million and other expenses of $5.7 million. Additional detail regarding certain items impacting FDIC premiums and other expenses are discussed above.

Total assets at $7.21 billion

Total assets at December 31, 2020, were $7.21 billion compared to $6.97 billion at September 30, 2020, and $3.47 billion at December 31, 2019. Gross loans receivable (excluding loans held for sale) were $5.49 billion at December 31, 2020, compared to $5.47 billion at September 30, 2020, and $2.75 billion at December 31, 2019. At December 31, 2020, gross loans receivable grew $2.74 billion, or 100% from a year ago, including $2.30 billion from the UCFC merger and $0.44 billion organically, including $0.39 billion of PPP loans. Also, at December 31, 2020, goodwill and other intangible assets totaled $348.3 million compared to $350.0 million at September 30, 2020, and $103.8 million at December 31, 2019, with the increase attributable to the UCFC merger.

Total deposits at December 31, 2020, were $6.05 billion compared with $5.80 billion at September 30, 2020, and $2.87 billion at December 31, 2019. At December 31, 2020, total deposits grew $3.18 billion, or 111% from a year ago, including $2.08 billion from the UCFC merger and $1.10 billion organically.

Total stockholders' equity was $982.3 million at December 31, 2020, compared to $959.0 million at September 30, 2020, and $426.2 million at December 31, 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.

Buybacks authorization

At December 31, 2020, 570,000 common shares remained available for repurchase under the Company's existing repurchase program. On January 26, 2020, the Company's Board of Directors approved an increase in the Company's repurchase authorization to up to 2,000,000 shares of common stock, or approximately 5% of current outstanding shares.

Dividend to be paid February 19

The Board of Directors declared a quarterly cash dividend of $0.24 per common share payable February 19, 2021, to shareholders of record at the close of business on February 12, 2021. The dividend represents an annual dividend of 3.6 percent based on the Premier common stock closing price on January 25, 2021. Premier has approximately 37,299,000 common shares outstanding.

Conference call

Premier will host a conference call at 11:00 a.m. ET on Wednesday, January 27, 2021, 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/pfc210127.html. The replay of the conference call will be available at www.PremierFinCorp.com until January 26, 2022, 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 75 branches and 12 loan offices in Ohio, Michigan, Indiana, Pennsylvania and West Virginia (West Virginia office operates as Home Savings Bank) and serves clients through a team of wealth professionals dedicated to each community banking branch. 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 website 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 December 31, 2020, consolidated financial statements as part of its Annual Report on Form 10-K 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. December 31, December 31,(in thousands) 2020 2019

AssetsCash and cash equivalentsCash and amounts due from depository institutions $ 79,593 $ 46,254

Interest-bearing deposits 79,673 85,000

159,266 131,254

Available-for sale, carried at fair value 736,654 283,448

Trading securities, carried at fair value 1,090 -

Securities investments 737,744 283,448

Loans 5,491,240 2,777,564

Allowance for credit losses - loans (82,079 ) (31,243 )

Loans, net 5,409,161 2,746,321

Loans held for sale 221,616 18,008

Mortgage servicing rights 13,153 10,267

Accrued interest receivable 25,434 10,244

Federal Home Loan Bank stock 16,026 11,915

Bank Owned Life Insurance 144,784 75,544

Office properties and equipment 58,665 39,563

Real estate and other assets held for sale 343 100

Goodwill 317,948 100,069

Core deposit and other intangibles 30,337 3,772

Other assets 77,257 38,487

Total Assets $ 7,211,734 $ 3,468,992

Liabilities and Stockholders' EquityNon-interest-bearing deposits $ 1,597,262 $ 630,359

Interest-bearing deposits 4,450,579 2,239,966

Total deposits 6,047,841 2,870,325

Advances from FHLB and PPPLF - 85,063

Notes payable and other interest-bearing - 2,999 liabilitiesSubordinated debentures 84,860 36,083

Advance payments by borrowers for tax and 21,748 5,491 insuranceReserve for credit losses - unfunded commitments 5,350 571

Other liabilities 69,659 42,293

Total Liabilities 6,229,458 3,042,825

Stockholders' EquityPreferred stock - -

Common stock, net 306 127

Additional paid-in-capital 689,390 161,955

Accumulated other comprehensive income (loss) 15,004 4,595

Retained earnings 356,414 329,175

Treasury stock, at cost (78,838 ) (69,685 )

Total stockholders' equity 982,276 426,167

Total Liabilities and Stockholders' Equity $ 7,211,734 $ 3,468,992

Consolidated Statements of Income (Unaudited)Premier Financial Corp.Three Months EndedTwelve Months EndedDecember 31,December 31,(in thousands, except per share amounts)2020

2019

2020

2019

Interest Income:Loans$

57,694

$

33,695

$

225,084

$

130,853

Investment securities2,980

1,889

11,469

8,183

Interest-bearing deposits44

537

435

1,395

FHLB stock dividends98

120

958

653

Total interest income60,816

36,241

237,946

141,084

Interest Expense:Deposits5,158

5,999

26,918

22,613

FHLB advances and other1

431

1,691

1,443

Subordinated debentures690

311

1,300

1,354

Notes Payable-

2

32

25

Total interest expense5,849

6,743

29,941

25,435

Net interest income54,967

29,498

208,005

115,649

Provision for credit losses - loans(6,158

)

1,084

43,154

2,905

Provision (benefit) for credit losses - unfunded commitments(606

)

39

1,096

(21

)

Total provision for credit losses(6,764

)

1,123

44,250

2,884

Net interest income after provision for loan losses61,731

28,375

163,755

112,765

Non-interest Income:Service fees and other charges5,767

3,693

21,369

14,028

Mortgage banking income5,436

2,683

28,199

9,483

Gain on sale of non-mortgage loans90

11

324

226

Gain (loss) on sale of available for sale securities-

13

1,464

24

Gain (loss) on trading securities76

-

90

-

Insurance commissions3,913

3,123

16,788

14,118

Wealth management income1,808

964

6,159

3,127

Income from Bank Owned Life Insurance845

456

3,306

2,158

Other non-interest income734

873

2,985

1,792

Total Non-interest Income18,669

11,816

80,684

44,956

Non-interest Expense:Compensation and benefits19,882

14,631

77,213

57,175

Occupancy4,471

2,277

16,320

9,027

FDIC insurance premium983

208

3,355

484

Financial institutions tax1,106

526

4,173

2,193

Data processing3,752

1,763

14,886

8,055

Amortization of intangibles1,668

281

6,449

1,120

Acquisition related charges2,190

882

19,485

1,422

Other non-interest expense7,261

4,153

23,289

17,608

Total Non-interest Expense41,313

24,721

165,170

97,084

Income before income taxes39,087

15,470

79,269

60,637

Income tax expense8,240

2,953

16,192

11,267

Net Income$

30,847

$

12,517

$

63,077

$

49,370

Earnings per common share:Basic$

0.83

$

0.63

$

1.75

$

2.49

Diluted$

0.82

$

0.63

$

1.75

$

2.48

Average Shares Outstanding:Basic37,311

19,792

35,902

19,844

Diluted37,350

19,895

35,949

19,931

Consolidated Statements of Income(Unaudited)Premier Financial Corp. Three Months Ended Twelve Months Ended December 31, December 31,(in thousands, except per share 2020 2019 2020 2019 amounts)Interest Income:Loans $ 57,694 $ 33,695 $ 225,084 $ 130,853

Investment securities 2,980 1,889 11,469 8,183

Interest-bearing deposits 44 537 435 1,395

FHLB stock dividends 98 120 958 653

Total interest income 60,816 36,241 237,946 141,084

Interest Expense:Deposits 5,158 5,999 26,918 22,613

FHLB advances and other 1 431 1,691 1,443

Subordinated debentures 690 311 1,300 1,354

Notes Payable - 2 32 25

Total interest expense 5,849 6,743 29,941 25,435

Net interest income 54,967 29,498 208,005 115,649

Provision for credit losses - (6,158 ) 1,084 43,154 2,905 loansProvision (benefit) for credit (606 ) 39 1,096 (21 )losses - unfunded commitmentsTotal provision for credit losses (6,764 ) 1,123 44,250 2,884

Net interest income after 61,731 28,375 163,755 112,765 provision for loan lossesNon-interest Income:Service fees and other charges 5,767 3,693 21,369 14,028

Mortgage banking income 5,436 2,683 28,199 9,483

Gain on sale of non-mortgage loans 90 11 324 226

Gain (loss) on sale of available - 13 1,464 24 for sale securitiesGain (loss) on trading securities 76 - 90 -

Insurance commissions 3,913 3,123 16,788 14,118

Wealth management income 1,808 964 6,159 3,127

Income from Bank Owned Life 845 456 3,306 2,158 InsuranceOther non-interest income 734 873 2,985 1,792

Total Non-interest Income 18,669 11,816 80,684 44,956

Non-interest Expense:Compensation and benefits 19,882 14,631 77,213 57,175

Occupancy 4,471 2,277 16,320 9,027

FDIC insurance premium 983 208 3,355 484

Financial institutions tax 1,106 526 4,173 2,193

Data processing 3,752 1,763 14,886 8,055

Amortization of intangibles 1,668 281 6,449 1,120

Acquisition related charges 2,190 882 19,485 1,422

Other non-interest expense 7,261 4,153 23,289 17,608

Total Non-interest Expense 41,313 24,721 165,170 97,084

Income before income taxes 39,087 15,470 79,269 60,637

Income tax expense 8,240 2,953 16,192 11,267

Net Income $ 30,847 $ 12,517 $ 63,077 $ 49,370

Earnings per common share:Basic $ 0.83 $ 0.63 $ 1.75 $ 2.49

Diluted $ 0.82 $ 0.63 $ 1.75 $ 2.48

Average Shares Outstanding:Basic 37,311 19,792 35,902 19,844

Diluted 37,350 19,895 35,949 19,931

Financial Summary and Comparison (Unaudited)Premier Financial Corp.Three Months EndedTwelve Months EndedDecember 31,December 31,(dollars in thousands, except per share data)2020

2019

% change

2020

2019

% change

Summary of OperationsTax-equivalent interest income (2)$

61,067

$

36,473

67.4

%

$

238,964

$

142,051

68.2

%

Interest expense5,849

6,743

(13.3

)

29,941

25,435

17.7

Tax-equivalent net interest income (2)55,218

29,730

85.7

209,023

116,616

79.2

Provision for credit losses(6,764

)

1,123

(702.3

)

44,250

2,884

1,434.3

Core provision for credit losses (4)(6,764

)

1,123

(702.3

)

18,301

2,884

534.6

Investment securities gains (losses)76

13

NM

1,554

24

NM

Non-interest income (excluding securities gains/losses)18,593

11,803

57.5

79,130

44,932

76.1

Non-interest expense41,313

24,721

67.1

165,170

97,084

70.1

Core non-interest expense (4)39,123

23,839

64.1

144,278

95,662

50.8

Income tax expense8,240

2,953

179.0

16,192

11,267

43.7

Net income30,847

12,517

146.4

63,077

49,370

27.8

Core net income (4)32,577

13,214

146.5

99,348

50,679

96.0

Tax equivalent adjustment (2)251

232

8.2

1,018

967

5.3

At Period EndAssets7,211,734

3,468,992

107.9

Earning assets6,546,299

3,175,564

106.1

Loans5,491,240

2,777,564

97.7

Allowance for credit losses - loans82,079

31,243

162.7

Deposits6,047,841

2,870,325

110.7

Stockholders' equity982,276

426,167

130.5

Average BalancesAssets7,089,060

3,425,097

107.0

6,592,633

3,283,780

100.8

Earning assets6,363,306

3,107,224

104.8

5,931,965

2,969,662

99.8

Loans5,609,116

2,688,519

108.6

5,224,357

2,597,864

101.1

Deposits and interest-bearing liabilities6,044,049

2,954,049

104.6

5,604,699

2,830,244

98.0

Deposits5,956,550

2,830,043

110.5

5,362,436

2,717,224

97.3

Stockholders' equity946,223

420,352

125.1

898,092

406,286

121.0

Stockholders' equity / assets13.35

%

12.27

%

8.8

13.62

%

12.37

%

10.1

Per Common Share DataNet Income (Loss)Basic$

0.83

$

0.63

31.1

$

1.75

$

2.49

(29.5

)

Diluted0.82

0.63

30.9

1.75

2.48

(29.3

)

Core diluted (4)0.87

0.66

31.8

$

2.76

2.54

8.7

Dividends0.22

0.22

-

0.88

0.79

11.4

Market Value:High$

23.49

$

32.39

(27.5

)

$

32.05

$

32.39

(1.0

)

Low14.90

27.77

(46.3

)

10.98

24.12

(54.5

)

Close23.00

31.32

(26.6

)

23.00

31.32

(26.6

)

Common Book Value26.34

21.60

21.9

26.34

21.60

21.9

Tangible Common Book Value (1)17.00

16.34

4.0

17.00

16.34

4.0

Shares outstanding, end of period (000s)37,291

19,730

89.0

37,291

19,730

89.0

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

%

3.80

%

(8.7

)

3.52

%

3.93

%

(10.4

)

Return on average assets1.73

%

1.45

%

19.4

0.96

%

1.50

%

(36.2

)

Core return on average assets (4)1.83

%

1.53

%

19.4

1.51

%

1.54

%

(2.4

)

Return on average equity12.97

%

11.81

%

9.8

7.02

%

12.15

%

(42.2

)

Core return on average equity (4)13.70

%

12.47

%

9.8

11.06

%

12.47

%

(11.3

)

Efficiency ratio (3)55.97

%

59.52

%

(6.0

)

57.32

%

60.10

%

(4.6

)

Core efficiency ratio (4)53.00

%

57.40

%

(7.7

)

50.07

%

59.22

%

(15.4

)

Effective tax rate21.08

%

19.09

%

10.4

20.43

%

18.58

%

9.9

Dividend payout ratio (core)25.29

%

33.33

%

(24.1

)

31.88

%

31.10

%

2.5

FinancialSummary andComparison(Unaudited)PremierFinancial Corp. Three Months Ended Twelve Months Ended December 31, December 31,(dollars inthousands, 2020 2019 % change 2020 2019 % changeexcept per sharedata)Summary ofOperations Tax-equivalent $ 61,067 $ 36,473 67.4 % $ 238,964 $ 142,051 68.2 %interest income(2)Interest expense 5,849 6,743 (13.3 ) 29,941 25,435 17.7

Tax-equivalent 55,218 29,730 85.7 209,023 116,616 79.2 net interestincome (2)Provision for (6,764 ) 1,123 (702.3 ) 44,250 2,884 1,434.3 credit lossesCore provision (6,764 ) 1,123 (702.3 ) 18,301 2,884 534.6 for creditlosses (4)Investment 76 13 NM 1,554 24 NM securities gains(losses)Non-interestincome 18,593 11,803 57.5 79,130 44,932 76.1 (excludingsecurities gains/losses)Non-interest 41,313 24,721 67.1 165,170 97,084 70.1 expenseCore 39,123 23,839 64.1 144,278 95,662 50.8 non-interestexpense (4)Income tax 8,240 2,953 179.0 16,192 11,267 43.7 expenseNet income 30,847 12,517 146.4 63,077 49,370 27.8

Core net income 32,577 13,214 146.5 99,348 50,679 96.0 (4)Tax equivalent 251 232 8.2 1,018 967 5.3 adjustment (2)At Period EndAssets 7,211,734 3,468,992 107.9

Earning assets 6,546,299 3,175,564 106.1

Loans 5,491,240 2,777,564 97.7

Allowance for 82,079 31,243 162.7 credit losses -loansDeposits 6,047,841 2,870,325 110.7

Stockholders' 982,276 426,167 130.5 equityAverage BalancesAssets 7,089,060 3,425,097 107.0 6,592,633 3,283,780 100.8

Earning assets 6,363,306 3,107,224 104.8 5,931,965 2,969,662 99.8

Loans 5,609,116 2,688,519 108.6 5,224,357 2,597,864 101.1

Deposits and 6,044,049 2,954,049 104.6 5,604,699 2,830,244 98.0 interest-bearingliabilitiesDeposits 5,956,550 2,830,043 110.5 5,362,436 2,717,224 97.3

Stockholders' 946,223 420,352 125.1 898,092 406,286 121.0 equityStockholders' 13.35 % 12.27 % 8.8 13.62 % 12.37 % 10.1 equity / assetsPer Common ShareDataNet Income(Loss)Basic $ 0.83 $ 0.63 31.1 $ 1.75 $ 2.49 (29.5 )

Diluted 0.82 0.63 30.9 1.75 2.48 (29.3 )

Core diluted (4) 0.87 0.66 31.8 $ 2.76 2.54 8.7

Dividends 0.22 0.22 - 0.88 0.79 11.4

Market Value:High $ 23.49 $ 32.39 (27.5 ) $ 32.05 $ 32.39 (1.0 )

Low 14.90 27.77 (46.3 ) 10.98 24.12 (54.5 )

Close 23.00 31.32 (26.6 ) 23.00 31.32 (26.6 )

Common Book 26.34 21.60 21.9 26.34 21.60 21.9 ValueTangible Common 17.00 16.34 4.0 17.00 16.34 4.0 Book Value (1)Shares 37,291 19,730 89.0 37,291 19,730 89.0 outstanding, endof period (000s)PerformanceRatios(annualized)Tax-equivalent 3.47 % 3.80 % (8.7 ) 3.52 % 3.93 % (10.4 )net interestmargin (2)Return on 1.73 % 1.45 % 19.4 0.96 % 1.50 % (36.2 )average assetsCore return on 1.83 % 1.53 % 19.4 1.51 % 1.54 % (2.4 )average assets(4)Return on 12.97 % 11.81 % 9.8 7.02 % 12.15 % (42.2 )average equityCore return on 13.70 % 12.47 % 9.8 11.06 % 12.47 % (11.3 )average equity(4)Efficiency ratio 55.97 % 59.52 % (6.0 ) 57.32 % 60.10 % (4.6 )(3)Core efficiency 53.00 % 57.40 % (7.7 ) 50.07 % 59.22 % (15.4 )ratio (4)Effective tax 21.08 % 19.09 % 10.4 20.43 % 18.58 % 9.9 rateDividend payout 25.29 % 33.33 % (24.1 ) 31.88 % 31.10 % 2.5 ratio (core)Note: 2020 current quarter and year-to-date results include three and eleven 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 elevenmonths 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 EndedTwelve Months EndedDecember 31,December 31,Mortgage Banking2020

2019

2020

2019

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

6,146

$

2,035

$

36,359

$

7,706

Mortgage loan servicing revenue (expense):Mortgage loan servicing revenue1,916

978

7,296

3,820

Amortization of mortgage servicing rights(2,174

)

(553

)

(7,477

)

(1,809

)

Mortgage servicing rights valuation adjustments(452

)

223

(7,979

)

(234

)

(710

)

648

(8,160

)

1,777

Total revenue from sale and servicing of mortgage loans$

5,436

$

2,683

$

28,199

$

9,483

Mortgage servicing rights:Balance at beginning of period$

21,538

$

10,617

$

10,801

$

10,419

Loans sold, servicing retained2,302

737

8,595

2,191

Mortgage servicing rights acquired-

-

9,747

-

Amortization(2,174

)

(553

)

(7,477

)

(1,809

)

Carrying value before valuation allowance at end of period21,666

10,801

21,666

10,801

Valuation allowance:Balance at beginning of period(8,061

)

(758

)

(534

)

(300

)

Impairment recovery (charges)(452

)

224

(7,979

)

(234

)

Balance at end of period(8,513

)

(534

)

(8,513

)

(534

)

Net carrying value at end of period$

13,153

$

10,267

$

13,153

$

10,267

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 assets35,943

Non-interest-bearing deposits(430,921

)

Interest-bearing deposits(1,651,669

)

(6)

Advances from Federal Home Loan Bank(381,000

)

Other liabilities(60,524

)

Net assets309,564

Goodwill217,879

Total value$

527,443

Premier Financial Corp.(dollars in thousands) Three Months Ended Twelve Months Ended December 31, December 31,Mortgage Banking 2020 2019 2020 2019

Revenue from sales andservicing of mortgage loans:Gain from sale of mortgage $ 6,146 $ 2,035 $ 36,359 $ 7,706 loansMortgage loan servicingrevenue (expense):Mortgage loan servicing 1,916 978 7,296 3,820 revenueAmortization of mortgage (2,174 ) (553 ) (7,477 ) (1,809 )servicing rightsMortgage servicing rights (452 ) 223 (7,979 ) (234 )valuation adjustments (710 ) 648 (8,160 ) 1,777

Total revenue from sale and $ 5,436 $ 2,683 $ 28,199 $ 9,483 servicing of mortgage loans Mortgage servicing rights:Balance at beginning of period $ 21,538 $ 10,617 $ 10,801 $ 10,419

Loans sold, servicing retained 2,302 737 8,595 2,191

Mortgage servicing rights - - 9,747 - acquiredAmortization (2,174 ) (553 ) (7,477 ) (1,809 )

Carrying value before 21,666 10,801 21,666 10,801 valuation allowance at end ofperiodValuation allowance:Balance at beginning of period (8,061 ) (758 ) (534 ) (300 )

Impairment recovery (charges) (452 ) 224 (7,979 ) (234 )

Balance at end of period (8,513 ) (534 ) (8,513 ) (534 )

Net carrying value at end of $ 13,153 $ 10,267 $ 13,153 $ 10,267 period Goodwill and Purchase PriceAccountingDeal 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 fractional 132 sharesTotal value $ 527,443

Allocation:Cash and cash equivalents $ 52,580

Securities available-for sale 262,753 (1)

Net loans, including loans 2,340,701 (2)held for sale and allowanceFederal Home Loan Bank stock 12,753

Office 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 35,943

Non-interest-bearing deposits (430,921 )

Interest-bearing deposits (1,651,669 ) (6)

Advances from Federal Home (381,000 )Loan BankOther liabilities (60,524 )

Net assets 309,564

Goodwill 217,879

Total value $ 527,443

Note: 2020 current quarter and year-to-date results include three and eleven 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 elevenmonths 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 December 31,(dollars in thousands)2020

2019

AverageYieldAverageYieldBalanceInterest(1)Rate(2)BalanceInterest(1)Rate(2)Interest-earning assets:Loans receivable$

5,609,116

$

57,715

4.12

%

$

2,688,519

$

33,716

4.98

%

Securities632,989

3,210

2.03

%

287,172

2,100

2.96

%

(3

)

Interest Bearing Deposits102,053

44

0.17

%

119,618

537

1.78

%

FHLB stock19,148

98

2.05

%

11,915

120

4.00

%

Total interest-earning assets6,363,306

61,067

3.84

%

3,107,224

36,473

4.67

%

Non-interest-earning assets725,754

317,873

Total assets$

7,089,060

$

3,425,097

Deposits and Interest-bearing liabilities:Interest bearing deposits$

4,411,557

$

5,158

0.47

%

$

2,205,673

$

5,999

1.08

%

FHLB advances and other2,663

1

0.15

%

85,291

431

2.00

%

Subordinated debentures84,836

690

3.25

%

36,083

311

3.42

%

Notes payable-

-

-

2,632

2

0.30

%

Total interest-bearing liabilities4,499,056

5,849

0.52

%

2,329,679

6,743

1.15

%

Non-interest bearing deposits1,544,993

-

-

624,370

-

-

Total including non-interest-bearing deposits6,044,049

5,849

0.39

%

2,954,049

6,743

0.91

%

Other non-interest-bearing liabilities98,788

50,696

Total liabilities6,142,837

3,004,745

Stockholders' equity946,223

420,352

Total liabilities and stockholders' equity$

7,089,060

$

3,425,097

Net interest income; interest rate spread$

55,218

3.32

%

$

29,730

3.52

%

Net interest margin (4)3.47

%

3.80

%

Average interest-earning assets to average interest bearing liabilities141

%

133

%

Twelve Months Ended December 31,2020

2019

AverageYieldAverageYieldBalanceInterest(1)Rate(2)BalanceInterest(1)Rate(2)Interest-earning assets:Loans receivable$

5,224,357

$

225,179

4.31

%

$

2,597,864

$

130,943

5.04

%

Securities544,643

12,393

2.28

%

294,027

9,060

3.08

%

(3

)

Interest Bearing Deposits124,011

435

0.35

%

65,424

1,395

2.13

%

FHLB stock38,954

958

2.46

%

12,347

653

5.29

%

Total interest-earning assets5,931,965

238,965

4.03

%

2,969,662

142,051

4.78

%

Non-interest-earning assets660,668

314,118

Total assets$

6,592,633

$

3,283,780

Deposits and Interest-bearing liabilities:Interest bearing deposits$

4,050,958

$

26,918

0.66

%

$

2,122,439

$

22,613

1.07

%

FHLB advances and other187,745

1,692

0.90

%

73,013

1,443

1.98

%

Subordinated debentures48,471

1,300

2.68

%

36,083

1,354

3.75

%

Notes payable6,047

32

0.53

%

3,924

25

0.64

%

Total interest-bearing liabilities4,293,221

29,942

0.70

%

2,235,459

25,435

1.14

%

Non-interest bearing deposits1,311,478

-

-

594,785

-

-

Total including non-interest-bearing deposits5,604,699

29,942

0.53

%

2,830,244

25,435

0.90

%

Other non-interest-bearing liabilities89,842

47,250

Total liabilities5,694,541

2,877,494

Stockholders' equity898,092

406,286

Total liabilities and stockholders' equity$

6,592,633

$

3,283,780

Net interest income; interest rate spread$

209,023

3.33

%

$

116,616

3.64

%

Net interest margin (4)3.52

%

3.93

%

Average interest-earning assets to average interest bearing liabilities138

%

133

%

Yield AnalysisPremier FinancialCorp. Three Months Ended December 31, (dollars in thousands) 2020 2019

Average Yield Average Yield Balance Interest Rate Balance Interest Rate (1) (2) (1) (2)Interest-earningassets:Loans receivable $ 5,609,116 $ 57,715 4.12 % $ 2,688,519 $ 33,716 4.98 %

Securities 632,989 3,210 2.03 % 287,172 2,100 2.96 % (3 )

Interest Bearing 102,053 44 0.17 % 119,618 537 1.78 %DepositsFHLB stock 19,148 98 2.05 % 11,915 120 4.00 %

Total 6,363,306 61,067 3.84 % 3,107,224 36,473 4.67 %interest-earningassetsNon-interest-earning 725,754 317,873assetsTotal assets $ 7,089,060 $ 3,425,097

Deposits andInterest-bearingliabilities:Interest bearing $ 4,411,557 $ 5,158 0.47 % $ 2,205,673 $ 5,999 1.08 %depositsFHLB advances and 2,663 1 0.15 % 85,291 431 2.00 %otherSubordinated 84,836 690 3.25 % 36,083 311 3.42 %debenturesNotes payable - - - 2,632 2 0.30 %

Total 4,499,056 5,849 0.52 % 2,329,679 6,743 1.15 %interest-bearingliabilitiesNon-interest bearing 1,544,993 - - 624,370 - - depositsTotal including 6,044,049 5,849 0.39 % 2,954,049 6,743 0.91 %non-interest-bearingdepositsOther 98,788 50,696non-interest-bearingliabilitiesTotal liabilities 6,142,837 3,004,745

Stockholders' equity 946,223 420,352

Total liabilities $ 7,089,060 $ 3,425,097and stockholders'equityNet interest income; $ 55,218 3.32 % $ 29,730 3.52 %interest rate spreadNet interest margin 3.47 % 3.80 %(4)Averageinterest-earning 141 % 133 %assets to averageinterest bearingliabilities Twelve Months Ended December 31, 2020 2019

Average Yield Average Yield Balance Interest Rate Balance Interest Rate (1) (2) (1) (2)Interest-earningassets:Loans receivable $ 5,224,357 $ 225,179 4.31 % $ 2,597,864 $ 130,943 5.04 %

Securities 544,643 12,393 2.28 % 294,027 9,060 3.08 % (3 )

Interest Bearing 124,011 435 0.35 % 65,424 1,395 2.13 %DepositsFHLB stock 38,954 958 2.46 % 12,347 653 5.29 %

Total 5,931,965 238,965 4.03 % 2,969,662 142,051 4.78 %interest-earningassetsNon-interest-earning 660,668 314,118assetsTotal assets $ 6,592,633 $ 3,283,780

Deposits andInterest-bearingliabilities:Interest bearing $ 4,050,958 $ 26,918 0.66 % $ 2,122,439 $ 22,613 1.07 %depositsFHLB advances and 187,745 1,692 0.90 % 73,013 1,443 1.98 %otherSubordinated 48,471 1,300 2.68 % 36,083 1,354 3.75 %debenturesNotes payable 6,047 32 0.53 % 3,924 25 0.64 %

Total 4,293,221 29,942 0.70 % 2,235,459 25,435 1.14 %interest-bearingliabilitiesNon-interest bearing 1,311,478 - - 594,785 - - depositsTotal including 5,604,699 29,942 0.53 % 2,830,244 25,435 0.90 %non-interest-bearingdepositsOther 89,842 47,250non-interest-bearingliabilitiesTotal liabilities 5,694,541 2,877,494

Stockholders' equity 898,092 406,286

Total liabilities $ 6,592,633 $ 3,283,780and stockholders'equityNet interest income; $ 209,023 3.33 % $ 116,616 3.64 %interest rate spreadNet interest margin 3.52 % 3.93 %(4)Averageinterest-earning 138 % 133 %assets to averageinterest bearingliabilitiesNote: 2020 current quarter and year-to-date results include three and eleven 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 elevenmonths 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)4th Qtr 20203rd Qtr 20202nd Qtr 20201st Qtr 20204th Qtr 2019Summary of OperationsTax-equivalent interest income (1)$

61,067

$

60,418

$

62,705

$

54,773

$

36,473

Interest expense5,849

6,888

8,145

9,059

6,743

Tax-equivalent net interest income (1)55,218

53,530

54,560

45,714

29,730

Provision for credit losses(6,764

)

2,794

2,975

45,244

1,123

Core provision for credit losses (3)(6,764

)

2,794

2,975

19,295

1,123

Investment securities gains (losses)76

1,480

(2

)

-

13

Non-interest income (excluding securities gains/losses)18,593

23,520

23,017

13,999

11,803

Non-interest expense41,313

43,563

37,984

42,310

24,721

Core non-interest expense (3)39,123

38,445

35,885

30,824

23,839

Income tax expense (benefit)8,240

6,259

7,303

(5,610

)

2,953

Net income (loss)30,847

25,655

29,057

(22,482

)

12,517

Core net income (3)32,577

28,587

30,715

7,470

13,214

Tax equivalent adjustment (1)251

259

256

251

232

At Period EndTotal assets$

7,211,734

$

6,974,953

$

7,013,811

$

6,538,942

$

3,468,992

Earning assets6,546,299

6,340,132

6,345,655

5,889,186

3,175,935

Loans5,491,240

5,470,548

5,457,238

5,113,917

2,777,564

Allowance for loan losses82,079

88,917

88,555

85,859

31,243

Deposits6,047,841

5,795,757

5,759,843

4,994,148

2,870,325

Stockholders' equity982,276

959,025

940,968

916,843

426,167

Stockholders' equity / assets13.62

%

13.75

%

13.42

%

14.02

%

12.29

%

Goodwill317,948

317,948

317,948

317,520

100,069

Average BalancesTotal assets$

7,089,060

$

6,935,783

$

7,005,783

$

5,357,598

$

3,425,097

Earning assets6,363,306

6,211,267

6,247,037

4,862,532

3,107,224

Loans5,609,116

5,555,621

5,389,805

4,317,857

2,688,519

Deposits and interest-bearing liabilities6,044,049

5,901,652

5,963,127

4,488,003

2,954,049

Deposits5,956,550

5,738,006

5,490,986

4,240,053

2,830,043

Stockholders' equity946,223

927,506

932,793

787,519

420,352

Stockholders' equity / assets13.35

%

13.37

%

13.31

%

14.70

%

12.27

%

Per Common Share DataNet Income (Loss):Basic$

0.83

$

0.69

$

0.78

$

(0.71

)

$

0.63

Diluted0.82

0.69

0.78

(0.71

)

0.63

Core diluted (3)0.87

0.77

0.82

0.24

0.66

Dividends0.22

0.22

0.22

0.22

0.22

Market Value:High$

23.49

$

21.24

$

20.11

$

32.05

$

32.39

Low14.90

14.74

12.95

10.98

27.77

Close23.00

15.58

17.67

14.74

31.32

Common Book Value26.34

25.71

25.23

24.58

21.60

Shares outstanding, end of period (000s)37,291

37,297

37,296

37,288

19,730

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

%

3.47

%

3.51

%

3.78

%

3.80

%

Return on average assets1.73

%

1.49

%

1.67

%

-1.69

%

1.45

%

Core return on average assets (3)1.83

%

1.64

%

1.76

%

0.56

%

1.53

%

Return on average equity12.97

%

11.12

%

12.53

%

-11.48

%

11.81

%

Core return on average equity (3)13.70

%

12.26

%

13.24

%

3.82

%

12.47

%

Efficiency ratio (2)55.97

%

56.54

%

48.96

%

70.86

%

59.52

%

Core efficiency ratio (3)53.00

%

49.90

%

46.26

%

51.62

%

57.40

%

Effective tax rate21.08

%

19.61

%

20.09

%

19.97

%

19.09

%

Common dividend payout ratio (core)25.29

%

28.57

%

26.83

%

91.67

%

34.92

%

SelectedQuarterlyInformationPremierFinancial Corp. (dollars inthousands, 4th Qtr 2020 3rd Qtr 2020 2nd Qtr 2020 1st Qtr 2020 4th Qtr 2019except per sharedata)Summary ofOperationsTax-equivalent $ 61,067 $ 60,418 $ 62,705 $ 54,773 $ 36,473 interest income(1)Interest expense 5,849 6,888 8,145 9,059 6,743

Tax-equivalent 55,218 53,530 54,560 45,714 29,730 net interestincome (1)Provision for (6,764 ) 2,794 2,975 45,244 1,123 credit lossesCore provision (6,764 ) 2,794 2,975 19,295 1,123 for creditlosses (3)Investment 76 1,480 (2 ) - 13 securities gains(losses)Non-interestincome 18,593 23,520 23,017 13,999 11,803 (excludingsecurities gains/losses)Non-interest 41,313 43,563 37,984 42,310 24,721 expenseCore 39,123 38,445 35,885 30,824 23,839 non-interestexpense (3)Income tax 8,240 6,259 7,303 (5,610 ) 2,953 expense(benefit)Net income 30,847 25,655 29,057 (22,482 ) 12,517 (loss)Core net income 32,577 28,587 30,715 7,470 13,214 (3)Tax equivalent 251 259 256 251 232 adjustment (1)At Period EndTotal assets $ 7,211,734 $ 6,974,953 $ 7,013,811 $ 6,538,942 $ 3,468,992

Earning assets 6,546,299 6,340,132 6,345,655 5,889,186 3,175,935

Loans 5,491,240 5,470,548 5,457,238 5,113,917 2,777,564

Allowance for 82,079 88,917 88,555 85,859 31,243 loan lossesDeposits 6,047,841 5,795,757 5,759,843 4,994,148 2,870,325

Stockholders' 982,276 959,025 940,968 916,843 426,167 equityStockholders' 13.62 % 13.75 % 13.42 % 14.02 % 12.29 %equity / assetsGoodwill 317,948 317,948 317,948 317,520 100,069

Average BalancesTotal assets $ 7,089,060 $ 6,935,783 $ 7,005,783 $ 5,357,598 $ 3,425,097

Earning assets 6,363,306 6,211,267 6,247,037 4,862,532 3,107,224

Loans 5,609,116 5,555,621 5,389,805 4,317,857 2,688,519

Deposits and 6,044,049 5,901,652 5,963,127 4,488,003 2,954,049 interest-bearingliabilitiesDeposits 5,956,550 5,738,006 5,490,986 4,240,053 2,830,043

Stockholders' 946,223 927,506 932,793 787,519 420,352 equityStockholders' 13.35 % 13.37 % 13.31 % 14.70 % 12.27 %equity / assetsPer Common ShareDataNet Income(Loss):Basic $ 0.83 $ 0.69 $ 0.78 $ (0.71 ) $ 0.63

Diluted 0.82 0.69 0.78 (0.71 ) 0.63

Core diluted (3) 0.87 0.77 0.82 0.24 0.66

Dividends 0.22 0.22 0.22 0.22 0.22

Market Value:High $ 23.49 $ 21.24 $ 20.11 $ 32.05 $ 32.39

Low 14.90 14.74 12.95 10.98 27.77

Close 23.00 15.58 17.67 14.74 31.32

Common Book 26.34 25.71 25.23 24.58 21.60 ValueShares 37,291 37,297 37,296 37,288 19,730 outstanding, endof period (000s)PerformanceRatios(annualized)Tax-equivalent 3.47 % 3.47 % 3.51 % 3.78 % 3.80 %net interestmargin (1)Return on 1.73 % 1.49 % 1.67 % -1.69 % 1.45 %average assetsCore return on 1.83 % 1.64 % 1.76 % 0.56 % 1.53 %average assets(3)Return on 12.97 % 11.12 % 12.53 % -11.48 % 11.81 %average equityCore return on 13.70 % 12.26 % 13.24 % 3.82 % 12.47 %average equity(3)Efficiency ratio 55.97 % 56.54 % 48.96 % 70.86 % 59.52 %(2)Core efficiency 53.00 % 49.90 % 46.26 % 51.62 % 57.40 %ratio (3)Effective tax 21.08 % 19.61 % 20.09 % 19.97 % 19.09 %rateCommon dividend 25.29 % 28.57 % 26.83 % 91.67 % 34.92 %payout ratio(core)Note: 2020 current quarter and year-to-date results include three and eleven 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 elevenmonths 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)4th Qtr 20203rd Qtr 20202nd Qtr 20201st Qtr 20204th Qtr 2019Loan Portfolio CompositionOne to four family residential real estate$

1,201,051

$

1,194,940

$

1,226,106

$

1,265,901

$

324,773

Construction667,649

580,060

509,548

521,442

305,305

Commercial real estate2,383,001

2,328,944

2,266,189

2,200,266

1,506,026

Commercial1,202,353

1,263,565

1,244,549

897,865

578,071

Consumer finance120,729

128,995

146,139

137,679

37,649

Home equity and improvement272,701

281,010

290,459

301,146

122,864

Total loans5,847,484

5,777,514

5,682,990

5,324,299

2,874,688

Less:Undisbursed loan funds355,065

300,174

221,137

206,236

94,865

Deferred loan origination fees1,179

6,792

4,615

4,146

2,259

Allowance for credit losses - loans82,079

88,917

88,555

85,859

31,243

Net Loans$

5,409,161

$

5,381,631

$

5,368,683

$

5,028,058

$

2,746,321

Allowance for credit losses - loansBeginning allowance$

88,917

$

88,555

$

85,859

$

31,243

$

30,250

CECL adoption-

-

-

2,354

-

Acquisition related allowance/provision (non PCD)-

-

-

25,949

-

Acquisition related allowance/goodwill (PCD)-

-

-

7,698

-

Provision for credit losses - loans(6,158

)

3,658

1,868

17,837

1,084

Net recoveries (charge-offs)(680

)

(3,296

)

828

778

(91

)

Ending allowance$

82,079

$

88,917

$

88,555

$

85,859

$

31,243

Credit QualityTotal non-performing loans (1)$

51,983

$

48,322

$

39,470

$

32,692

$

13,437

Real estate owned (REO)343

521

573

548

100

Total non-performing assets (2)$

52,326

$

48,843

$

40,043

$

33,240

$

13,537

Net charge-offs (recoveries)680

3,296

(828

)

(778

)

91

Restructured loans, accruing (3)7,173

8,499

7,916

7,474

8,427

Allowance for credit losses - loans / loans1.49

%

1.63

%

1.62

%

1.68

%

1.12

%

Allowance for credit losses - loans / non-performing assets156.86

%

182.05

%

221.15

%

259.07

%

230.80

%

Allowance for credit losses - loans / non-performing loans157.90

%

184.01

%

224.36

%

263.43

%

232.51

%

Non-performing assets / loans plus REO0.95

%

0.89

%

0.73

%

0.65

%

0.49

%

Non-performing assets / total assets0.73

%

0.70

%

0.57

%

0.51

%

0.39

%

Net charge-offs / average loans (annualized)0.05

%

0.24

%

-0.06

%

-0.07

%

0.01

%

Deposit BalancesNon-interest-bearing demand deposits$

1,597,262

$

1,436,807

$

1,454,842

$

1,041,315

$

630,359

Interest-bearing demand deposits and money market2,627,669

2,511,263

2,361,486

2,069,723

1,198,012

Savings deposits700,480

674,354

671,650

606,508

303,166

Retail time deposits less than $250,000912,006

975,658

1,078,758

1,091,038

631,253

Retail time deposits greater than $250,000210,424

197,675

193,107

185,564

107,535

Total deposits$

6,047,841

$

5,795,757

$

5,759,843

$

4,994,148

$

2,870,325

Selected QuarterlyInformationPremier FinancialCorp. (dollars inthousands, except 4th Qtr 2020 3rd Qtr 2020 2nd Qtr 2020 1st Qtr 2020 4th Qtr 2019per share data)Loan PortfolioCompositionOne to four family $ 1,201,051 $ 1,194,940 $ 1,226,106 $ 1,265,901 $ 324,773 residential realestateConstruction 667,649 580,060 509,548 521,442 305,305

Commercial real 2,383,001 2,328,944 2,266,189 2,200,266 1,506,026 estateCommercial 1,202,353 1,263,565 1,244,549 897,865 578,071

Consumer finance 120,729 128,995 146,139 137,679 37,649

Home equity and 272,701 281,010 290,459 301,146 122,864 improvementTotal loans 5,847,484 5,777,514 5,682,990 5,324,299 2,874,688

Less:Undisbursed loan 355,065 300,174 221,137 206,236 94,865 fundsDeferred loan 1,179 6,792 4,615 4,146 2,259 origination feesAllowance for credit 82,079 88,917 88,555 85,859 31,243 losses - loansNet Loans $ 5,409,161 $ 5,381,631 $ 5,368,683 $ 5,028,058 $ 2,746,321

Allowance for creditlosses - loansBeginning allowance $ 88,917 $ 88,555 $ 85,859 $ 31,243 $ 30,250

CECL adoption - - - 2,354 -

Acquisition related - - - 25,949 - allowance/provision(non PCD)Acquisition related - - - 7,698 - allowance/goodwill(PCD)Provision for credit (6,158 ) 3,658 1,868 17,837 1,084 losses - loansNet recoveries (680 ) (3,296 ) 828 778 (91 )(charge-offs)Ending allowance $ 82,079 $ 88,917 $ 88,555 $ 85,859 $ 31,243

Credit QualityTotal non-performing $ 51,983 $ 48,322 $ 39,470 $ 32,692 $ 13,437 loans (1)Real estate owned 343 521 573 548 100 (REO)Total non-performing $ 52,326 $ 48,843 $ 40,043 $ 33,240 $ 13,537 assets (2)Net charge-offs 680 3,296 (828 ) (778 ) 91 (recoveries) Restructured loans, 7,173 8,499 7,916 7,474 8,427 accruing (3) Allowance for credit 1.49 % 1.63 % 1.62 % 1.68 % 1.12 %losses - loans /loansAllowance for creditlosses - loans / 156.86 % 182.05 % 221.15 % 259.07 % 230.80 %non-performingassetsAllowance for credit 157.90 % 184.01 % 224.36 % 263.43 % 232.51 %losses - loans /non-performing loansNon-performing 0.95 % 0.89 % 0.73 % 0.65 % 0.49 %assets / loans plusREONon-performing 0.73 % 0.70 % 0.57 % 0.51 % 0.39 %assets / totalassetsNet charge-offs / 0.05 % 0.24 % -0.06 % -0.07 % 0.01 %average loans(annualized) Deposit BalancesNon-interest-bearing $ 1,597,262 $ 1,436,807 $ 1,454,842 $ 1,041,315 $ 630,359 demand depositsInterest-bearing 2,627,669 2,511,263 2,361,486 2,069,723 1,198,012 demand deposits andmoney marketSavings deposits 700,480 674,354 671,650 606,508 303,166

Retail time deposits 912,006 975,658 1,078,758 1,091,038 631,253 less than $250,000Retail time deposits 210,424 197,675 193,107 185,564 107,535 greater than$250,000Total deposits $ 6,047,841 $ 5,795,757 $ 5,759,843 $ 4,994,148 $ 2,870,325

(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.Premier Financial Corp.Loan Delinquency Information(dollars in thousands)Total BalanceCurrent30 to 89 dayspast due% ofTotalNon AccrualLoans% ofTotalDecember 31, 2020One to four family residential real estate$

1,201,051

$

1,178,876

$

8,318

0.7

%

$

13,857

1.2

%

Construction667,649

664,248

2,294

0.3

%

1,107

0.2

%

Commercial real estate2,383,001

2,359,299

993

0.0

%

22,709

1.0

%

Commercial1,202,353

1,192,949

9

0.0

%

9,395

0.8

%

Consumer finance120,729

116,632

2,248

1.9

%

1,849

1.5

%

Home equity and improvement272,701

265,023

4,612

1.7

%

3,066

1.1

%

Total loans$

5,847,484

$

5,777,027

$

18,474

0.3

%

$

51,983

0.9

%

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

%

December 31, 2019One to four family residential real estate$

324,773

$

321,058

$

1,298

0.4

%

$

2,417

0.7

%

Construction305,305

305,305

-

0.0

%

-

0.0

%

Commercial real estate1,506,026

1,497,845

546

0.0

%

7,635

0.5

%

Commercial578,071

574,593

519

0.1

%

2,959

0.5

%

Consumer finance37,649

37,444

205

0.5

%

-

0.0

%

Home equity and improvement122,864

121,211

1,205

1.0

%

448

0.4

%

Total loans$

2,874,688

$

2,857,456

$

3,773

0.1

%

$

13,459

0.5

%

Loan Risk Ratings Information(dollars in thousands)Total BalancePass RatedSpecial Mention% ofTotalClassified% ofTotalDecember 31, 2020One to four family residential real estate$

1,186,262

$

1,183,104

$

796

0.1

%

$

2,362

0.2

%

Construction667,649

647,906

19,743

3.0

%

-

0.0

%

Commercial real estate2,359,713

2,202,167

111,213

4.7

%

46,333

2.0

%

Commercial1,174,545

1,143,715

23,713

2.0

%

7,117

0.6

%

Consumer finance119,841

119,736

-

0.0

%

105

0.1

%

Home equity and improvement268,311

267,872

-

0.0

%

439

0.2

%

PCD loans71,163

33,311

3,832

5.4

%

34,020

47.8

%

Total loans$

5,847,484

$

5,597,811

$

159,297

2.7

%

$

90,376

1.5

%

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

1,182,709

$

1,179,490

$

268

0.0

%

$

2,951

0.2

%

Construction279,886

256,743

23,143

8.3

%

-

0.0

%

Commercial real estate2,305,320

2,165,668

108,011

4.7

%

31,641

1.4

%

Commercial1,222,180

1,188,604

24,618

2.0

%

8,958

0.7

%

Consumer finance129,144

129,025

-

0.0

%

119

0.1

%

Home equity and improvement276,246

275,831

-

0.0

%

415

0.2

%

PCD loans75,063

28,867

11,442

15.2

%

34,754

46.3

%

Total loans$

5,470,548

$

5,224,228

$

167,482

3.1

%

$

78,838

1.4

%

December 31, 2019One to four family residential real estate$

326,144

$

322,250

$

415

0.1

%

$

3,479

1.1

%

Construction206,721

205,076

1,645

0.8

%

-

0.0

%

Commercial real estate1,512,359

1,462,065

27,197

1.8

%

23,097

1.5

%

Commercial579,911

548,012

24,162

4.2

%

7,737

1.3

%

Consumer finance37,836

37,816

-

0.0

%

20

0.1

%

Home equity and improvement123,722

123,407

-

0.0

%

315

0.3

%

Total loans$

2,786,693

$

2,698,626

$

53,419

1.9

%

$

34,648

1.2

%

Premier FinancialCorp. Loan DelinquencyInformation(dollars in Total 30 to 89 % of Non % ofthousands) Balance Current days Total Accrual Total past due Loans December 31, 2020One to four family $ 1,201,051 $ 1,178,876 $ 8,318 0.7 % $ 13,857 1.2 %residential realestateConstruction 667,649 664,248 2,294 0.3 % 1,107 0.2 %

Commercial real 2,383,001 2,359,299 993 0.0 % 22,709 1.0 %estateCommercial 1,202,353 1,192,949 9 0.0 % 9,395 0.8 %

Consumer finance 120,729 116,632 2,248 1.9 % 1,849 1.5 %

Home equity and 272,701 265,023 4,612 1.7 % 3,066 1.1 %improvementTotal loans $ 5,847,484 $ 5,777,027 $ 18,474 0.3 % $ 51,983 0.9 %

September 30, 2020One to four family $ 1,194,940 $ 1,173,175 $ 10,562 0.9 % $ 11,203 0.9 %residential realestateConstruction 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 finance 128,995 125,260 2,682 2.1 % 1,053 0.8 %

Home 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 %

December 31, 2019One to four family $ 324,773 $ 321,058 $ 1,298 0.4 % $ 2,417 0.7 %residential realestateConstruction 305,305 305,305 - 0.0 % - 0.0 %

Commercial real 1,506,026 1,497,845 546 0.0 % 7,635 0.5 %estateCommercial 578,071 574,593 519 0.1 % 2,959 0.5 %

Consumer finance 37,649 37,444 205 0.5 % - 0.0 %

Home equity and 122,864 121,211 1,205 1.0 % 448 0.4 %improvementTotal loans $ 2,874,688 $ 2,857,456 $ 3,773 0.1 % $ 13,459 0.5 %

Loan Risk RatingsInformation(dollars in Total Pass Rated Special % of Classified % ofthousands) Balance Mention Total Total December 31, 2020One to four family $ 1,186,262 $ 1,183,104 $ 796 0.1 % $ 2,362 0.2 %residential realestateConstruction 667,649 647,906 19,743 3.0 % - 0.0 %

Commercial real 2,359,713 2,202,167 111,213 4.7 % 46,333 2.0 %estateCommercial 1,174,545 1,143,715 23,713 2.0 % 7,117 0.6 %

Consumer finance 119,841 119,736 - 0.0 % 105 0.1 %

Home equity and 268,311 267,872 - 0.0 % 439 0.2 %improvementPCD loans 71,163 33,311 3,832 5.4 % 34,020 47.8 %

Total loans $ 5,847,484 $ 5,597,811 $ 159,297 2.7 % $ 90,376 1.5 %

September 30, 2020One to four family $ 1,182,709 $ 1,179,490 $ 268 0.0 % $ 2,951 0.2 %residential realestateConstruction 279,886 256,743 23,143 8.3 % - 0.0 %

Commercial real 2,305,320 2,165,668 108,011 4.7 % 31,641 1.4 %estateCommercial 1,222,180 1,188,604 24,618 2.0 % 8,958 0.7 %

Consumer finance 129,144 129,025 - 0.0 % 119 0.1 %

Home equity and 276,246 275,831 - 0.0 % 415 0.2 %improvementPCD loans 75,063 28,867 11,442 15.2 % 34,754 46.3 %

Total loans $ 5,470,548 $ 5,224,228 $ 167,482 3.1 % $ 78,838 1.4 %

December 31, 2019One to four family $ 326,144 $ 322,250 $ 415 0.1 % $ 3,479 1.1 %residential realestateConstruction 206,721 205,076 1,645 0.8 % - 0.0 %

Commercial real 1,512,359 1,462,065 27,197 1.8 % 23,097 1.5 %estateCommercial 579,911 548,012 24,162 4.2 % 7,737 1.3 %

Consumer finance 37,836 37,816 - 0.0 % 20 0.1 %

Home equity and 123,722 123,407 - 0.0 % 315 0.3 %improvementTotal loans $ 2,786,693 $ 2,698,626 $ 53,419 1.9 % $ 34,648 1.2 %

COVID-19 UpdatePremier Financial Corp.($ in thousands)Deferrals Update12/31/20209/30/2020Commercial loan deferrals$

46,038

$

434,554

% of commercial loans1.2

%

11.4

%

% of total loans0.8

%

7.9

%

Retail loan deferrals$

7,412

$

48,187

% of retail loans0.4

%

2.9

%

% of total loans0.1

%

0.9

%

Total loan deferrals$

53,450

$

482,741

% of total loans1.0

%

8.8

%

Commercial High Sensitivity Portfolio UpdateAs of 12/31/20As of 9/30/20Industry% of TotalLoans% BalancesDeferred% Classifiedin Subsector% of TotalLoans% BalancesDeferred% Classifiedin SubsectorTraveler Accommodation2.8

%

15.0

%

11.6

%

2.8

%

60.7

%

3.9

%

Food Service1.0

%

0.0

%

0.5

%

1.0

%

22.4

%

0.6

%

Sub-total3.8

%

11.0

%

8.6

%

3.7

%

51.0

%

3.1

%

Retail Trade and CRE9.3

%

0.2

%

1.7

%

9.4

%

17.7

%

1.3

%

Long-term Care2.0

%

2.2

%

12.4

%

1.9

%

10.8

%

11.0

%

Arts/Entertainment/Recreation0.4

%

0.0

%

1.9

%

0.4

%

37.8

%

2.5

%

Energy0.1

%

0.0

%

0.0

%

0.1

%

0.0

%

0.0

%

Total15.6

%

3.1

%

4.7

%

15.6

%

25.2

%

3.0

%

Commercial Loan Deferral Rollforward9/30/20BalanceNewDeferralsPayoffs/ChangesReturn toPay(1)12/31/20Balance4Q20ExtensionsInterest only 1-3 months$

12,314

$

-

$

(23

)

$

(6,854

)

$

5,437

$

5,437

Interest only 4-5 months26,943

-

(60

)

(26,883

)

-

-

Interest only 6 months55,196

-

17,060

(45,568

)

26,688

17,472

Deferred payment 1-90 days57,262

824

(16,603

)

(31,079

)

10,404

-

Deferred payment 91-179 days6,497

-

(1

)

(6,496

)

-

-

Deferred payment 180 days276,342

-

(726

)

(272,107

)

3,509

-

Total$

434,554

$

824

$

(353

)

$

(388,987

)

$

46,038

$

22,909

Commercial Loan Deferral Expirations Update12/31/20BalanceJanuary$

15,698

February5,075

March-

April25,265

May-

June-

Total$

46,038

COVID-19UpdatePremierFinancialCorp.($ inthousands) Deferrals 12/31/2020 9/30/2020UpdateCommercial $ 46,038 $ 434,554 loandeferrals% of 1.2 % 11.4 %commercialloans% of total 0.8 % 7.9 %loansRetail loan $ 7,412 $ 48,187 deferrals% of retail 0.4 % 2.9 %loans% of total 0.1 % 0.9 %loansTotal loan $ 53,450 $ 482,741 deferrals% of total 1.0 % 8.8 %loans CommercialHighSensitivity As of 12/31/20 As of 9/30/20PortfolioUpdate % %Industry % of Total % Balances Classified % of Total % Balances Classified Loans Deferred in Loans Deferred in Subsector SubsectorTraveler 2.8 % 15.0 % 11.6 % 2.8 % 60.7 % 3.9 %AccommodationFood Service 1.0 % 0.0 % 0.5 % 1.0 % 22.4 % 0.6 %

Sub-total 3.8 % 11.0 % 8.6 % 3.7 % 51.0 % 3.1 %

Retail Trade 9.3 % 0.2 % 1.7 % 9.4 % 17.7 % 1.3 %and CRELong-term 2.0 % 2.2 % 12.4 % 1.9 % 10.8 % 11.0 %CareArts/ 0.4 % 0.0 % 1.9 % 0.4 % 37.8 % 2.5 %Entertainment/RecreationEnergy 0.1 % 0.0 % 0.0 % 0.1 % 0.0 % 0.0 %

Total 15.6 % 3.1 % 4.7 % 15.6 % 25.2 % 3.0 %

Commercial 9/30/20 New Payoffs/ Return to 12/31/20 4Q20Loan Deferral Balance Deferrals Changes Pay^(1) Balance ExtensionsRollforwardInterest only $ 12,314 $ - $ (23 ) $ (6,854 ) $ 5,437 $ 5,437 1-3 monthsInterest only 26,943 - (60 ) (26,883 ) - - 4-5 monthsInterest only 55,196 - 17,060 (45,568 ) 26,688 17,472 6 monthsDeferred 57,262 824 (16,603 ) (31,079 ) 10,404 - payment 1-90daysDeferred 6,497 - (1 ) (6,496 ) - - payment91-179 daysDeferred 276,342 - (726 ) (272,107 ) 3,509 - payment 180daysTotal $ 434,554 $ 824 $ (353 ) $ (388,987 ) $ 46,038 $ 22,909

CommercialLoan Deferral 12/31/20Expirations BalanceUpdateJanuary $ 15,698

February 5,075

March -

April 25,265

May -

June -

Total $ 46,038

(1) Represents approximately 94.2% of previously disclosed fourth quarter 2020 scheduled expirations.(1) Represents approximately 94.2% of previously disclosed fourth quarter 2020scheduled expirations.Non-GAAP ReconciliationsPremier Financial Corp.Twelve months ended(In thousands, except per share and ratio data)12/31/2012/31/194th Qtr 20203rd Qtr 20202nd Qtr 20201st Qtr 20204th Qtr 2019Acquisition related charges (pre-tax)$

19,485

$

1,422

$

2,190

$

3,711

$

2,099

$

11,486

$

882

Less: Tax benefit of acquisition related charges3,714

113

460

779

441

2,034

185

Acquisition related charges (after-tax)$

15,771

$

1,309

$

1,730

$

2,932

$

1,658

$

9,452

$

697

Total non-interest expenses$

165,170

$

97,084

$

41,313

$

43,563

$

37,984

$

42,310

$

24,721

Less: Acquisition related charges (pre-tax)19,485

1,422

2,190

3,711

2,099

11,486

882

Less: FHLB prepayment charges(1)1,407

-

-

1,407

-

-

-

Core non-interest expenses$

144,278

$

95,662

$

39,123

$

38,445

$

35,885

$

30,824

$

23,839

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$

44,250

$

2,884

$

(6,764

)

$

2,794

$

2,975

$

45,244

$

1,123

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

-

-

-

-

25,949

-

Core provision for credit losses$

18,301

$

2,884

$

(6,764

)

$

2,794

$

2,975

$

19,295

$

1,123

Non-interest income$

80,684

$

44,956

$

18,669

$

25,000

$

23,015

$

13,999

$

11,816

Less: Securities gains (losses)1,554

24

76

1,480

(2

)

-

13

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

79,130

$

44,932

$

18,593

$

23,520

$

23,017

$

13,999

$

11,803

Tax-equivalent net interest income$

209,023

$

116,616

$

55,218

$

53,530

$

54,560

$

45,714

$

29,730

Non-interest income (excluding securities gains/losses)79,130

44,932

18,593

23,520

23,017

13,999

11,803

Total revenues288,153

161,548

73,811

77,050

77,577

59,713

41,533

Core non-interest expenses$

144,278

$

95,662

$

39,123

$

38,445

$

35,885

$

30,824

$

23,839

Core efficiency ratio50.07

%

59.22

%

53.00

%

49.90

%

46.26

%

51.62

%

57.40

%

Income (loss) before income taxes$

79,269

$

60,637

$

39,087

$

31,914

$

36,360

$

(28,092

)

$

15,470

Add: Provision for credit losses44,250

2,884

(6,764

)

2,794

2,975

45,244

1,123

Pre-tax pre-provision income123,519

63,521

32,323

34,708

39,335

17,152

16,593

Add: Acquisition related charges (pre-tax)19,485

1,422

2,190

3,711

2,099

11,486

882

Core pre-tax pre-provision income$

143,004

$

64,943

$

34,513

$

38,419

$

41,434

$

28,638

$

17,475

Average total assets$

6,592,633

$

3,283,780

$

7,089,060

$

6,935,783

$

7,005,783

$

5,357,598

$

3,425,097

Core pre-tax pre-provision return on average assets2.17

%

1.98

%

1.94

%

2.20

%

2.38

%

2.15

%

2.02

%

Net income (loss)$

63,077

$

49,370

$

30,847

$

25,655

$

29,057

$

(22,482

)

$

12,517

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

1,309

-

-

-

20,500

-

Add: Acquisition related charges (after-tax)15,771

-

1,730

2,932

1,658

9,452

697

Core net income$

99,348

$

50,679

$

32,577

$

28,587

$

30,715

$

7,470

$

13,214

Diluted shares - Reported35,949

19,931

37,350

37,334

37,324

31,642

19,895

Add: Dilutive shares for core net income-

-

-

-

-

121

-

Diluted shares - Core35,949

19,931

37,350

37,334

37,324

31,763

19,895

Core diluted EPS$

2.76

$

2.54

$

0.87

$

0.77

$

0.82

$

0.24

$

0.66

Average total assets$

6,592,633

$

3,283,780

$

7,089,060

$

6,935,783

$

7,005,783

$

5,357,598

$

3,425,097

Core return on average assets1.51

%

1.54

%

1.83

%

1.64

%

1.76

%

0.56

%

1.53

%

Average total equity$

898,092

$

406,286

$

946,223

$

927,506

$

932,793

$

787,519

$

420,352

Core return on average equity11.06

%

12.47

%

13.70

%

12.26

%

13.24

%

3.82

%

12.47

%

Non-GAAPReconciliationsPremierFinancial Corp. Twelve months ended(In thousands,except per 12/31/20 12/31/19 4th Qtr 2020 3rd Qtr 2020 2nd Qtr 2020 1st Qtr 2020 4th Qtr 2019share and ratiodata)Acquisition $ 19,485 $ 1,422 $ 2,190 $ 3,711 $ 2,099 $ 11,486 $ 882 related charges(pre-tax)Less: Taxbenefit of 3,714 113 460 779 441 2,034 185 acquisitionrelated chargesAcquisition $ 15,771 $ 1,309 $ 1,730 $ 2,932 $ 1,658 $ 9,452 $ 697 related charges(after-tax) Total $ 165,170 $ 97,084 $ 41,313 $ 43,563 $ 37,984 $ 42,310 $ 24,721 non-interestexpensesLess:Acquisition 19,485 1,422 2,190 3,711 2,099 11,486 882 related charges(pre-tax)Less: FHLB 1,407 - - 1,407 - - - prepaymentcharges^(1)Core $ 144,278 $ 95,662 $ 39,123 $ 38,445 $ 35,885 $ 30,824 $ 23,839 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 $ 44,250 $ 2,884 $ (6,764 ) $ 2,794 $ 2,975 $ 45,244 $ 1,123 credit lossesLess:Acquisition 25,949 - - - - 25,949 - relatedprovision(pre-tax)Core provision $ 18,301 $ 2,884 $ (6,764 ) $ 2,794 $ 2,975 $ 19,295 $ 1,123 for creditlosses Non-interest $ 80,684 $ 44,956 $ 18,669 $ 25,000 $ 23,015 $ 13,999 $ 11,816 incomeLess: 1,554 24 76 1,480 (2 ) - 13 Securitiesgains (losses)Non-interestincome $ 79,130 $ 44,932 $ 18,593 $ 23,520 $ 23,017 $ 13,999 $ 11,803 (excludingsecuritiesgains/losses) Tax-equivalent $ 209,023 $ 116,616 $ 55,218 $ 53,530 $ 54,560 $ 45,714 $ 29,730 net interestincomeNon-interestincome 79,130 44,932 18,593 23,520 23,017 13,999 11,803 (excludingsecuritiesgains/losses)Total revenues 288,153 161,548 73,811 77,050 77,577 59,713 41,533

Core $ 144,278 $ 95,662 $ 39,123 $ 38,445 $ 35,885 $ 30,824 $ 23,839 non-interestexpensesCore efficiency 50.07 % 59.22 % 53.00 % 49.90 % 46.26 % 51.62 % 57.40 %ratio Income (loss) $ 79,269 $ 60,637 $ 39,087 $ 31,914 $ 36,360 $ (28,092 ) $ 15,470 before incometaxesAdd: Provision 44,250 2,884 (6,764 ) 2,794 2,975 45,244 1,123 for creditlossesPre-tax 123,519 63,521 32,323 34,708 39,335 17,152 16,593 pre-provisionincomeAdd:Acquisition 19,485 1,422 2,190 3,711 2,099 11,486 882 related charges(pre-tax)Core pre-tax $ 143,004 $ 64,943 $ 34,513 $ 38,419 $ 41,434 $ 28,638 $ 17,475 pre-provisionincomeAverage total $ 6,592,633 $ 3,283,780 $ 7,089,060 $ 6,935,783 $ 7,005,783 $ 5,357,598 $ 3,425,097 assetsCore pre-taxpre-provision 2.17 % 1.98 % 1.94 % 2.20 % 2.38 % 2.15 % 2.02 %return onaverage assets Net income $ 63,077 $ 49,370 $ 30,847 $ 25,655 $ 29,057 $ (22,482 ) $ 12,517 (loss)Add:Acquisition 20,500 1,309 - - - 20,500 - relatedprovision(after-tax)Add:Acquisition 15,771 - 1,730 2,932 1,658 9,452 697 related charges(after-tax)Core net income $ 99,348 $ 50,679 $ 32,577 $ 28,587 $ 30,715 $ 7,470 $ 13,214

Diluted shares 35,949 19,931 37,350 37,334 37,324 31,642 19,895 - ReportedAdd: Dilutive - - - - - 121 - shares for corenet incomeDiluted shares 35,949 19,931 37,350 37,334 37,324 31,763 19,895 - CoreCore diluted $ 2.76 $ 2.54 $ 0.87 $ 0.77 $ 0.82 $ 0.24 $ 0.66 EPS Average total $ 6,592,633 $ 3,283,780 $ 7,089,060 $ 6,935,783 $ 7,005,783 $ 5,357,598 $ 3,425,097 assetsCore return on 1.51 % 1.54 % 1.83 % 1.64 % 1.76 % 0.56 % 1.53 %average assets Average total $ 898,092 $ 406,286 $ 946,223 $ 927,506 $ 932,793 $ 787,519 $ 420,352 equityCore return on 11.06 % 12.47 % 13.70 % 12.26 % 13.24 % 3.82 % 12.47 %average equity Note: 2020 current quarter and year-to-date results include three and eleven 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/20210126006050/en/

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