Business Wire | Jul 29, 2021 04:15PM EDT

Premier Financial Corp. Announces Solid Second Quarter Results and Core Loan Growth

Jul. 29, 2021

DEFIANCE, Ohio--(BUSINESS WIRE)--Jul. 29, 2021--Premier Financial Corp. (Nasdaq: PFC) ("Premier" or the "Company") today announced 2021 second quarter results. Net income for the second quarter of 2021 was $31.4 million, or $0.84 per diluted common share, compared to $29.1 million, or $0.78 per diluted common share, for the second quarter of 2020. The prior year's results include the impact of $2.1 million of acquisition-related charges for the three months ended June 30, 2020, which had an after-tax cost of $1.7 million or $0.04 per diluted common share. Net income for the six months ended June 30, 2021, was $72.4 million, or $1.94 per diluted common share, compared to $6.6 million, or $0.19 per diluted common share, for the six months ended June 30, 2020. The six-month year-over-year comparison is substantially impacted by the acquisition of United Community Financial Corp. ("UCFC") on January 31, 2020, with the prior year's provision expense of $48.2 million that 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 2021 included a provision recovery of $10.9 million, which had an after-tax benefit of $8.6 million, or $0.23 per diluted common share, and no acquisition impact. Additionally, the prior 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.

"Results for the second quarter reflect the continued economic resurgence of our business and consumer clients across all markets," said Gary Small, President and CEO of Premier. "The Premier team drove excellent new business generation and delivered solid loan growth during the quarter in our core commercial, consumer and residential mortgage business lines. Household deposits remain high, debt levels have improved and a double-digit increase in debit card and ATM revenue suggests that our clients are more confident and well on their way to a brighter future."

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 equaled $14.8 million. To date, Premier Bank has recognized $13.0 million as loan interest income, including $2.8 million and $6.8 million during the three and six months ended June 30, 2021, respectively. Additionally, a total of $349.6 million in loans have been extinguished to date, including $178.4 million and $293.2 million during the three and six months ended June 30, 2021, respectively.

Beginning in January 2021, Premier Bank participated in the second round of PPP lending and made 2,229 loans for a total of $193.6 million during the six months ended June 30, 2021. Total gross fees for these loans were $7.8 million and Premier Bank has recognized $0.4 million and $0.6 million in loan interest income during the three and six months ended June 30, 2021, respectively.

Net interest income up compared to second quarter of 2020

Net interest income of $56.6 million in the second quarter of 2021 was up from $54.3 million in the second quarter of 2020. The increase over the prior year's second quarter was attributable to growth in interest-earning assets, PPP fees and a 53% decrease in average costs of funds. Net interest margin was 3.34% for the second quarter of 2021, down from 3.43% in the first quarter of 2021, and down from 3.51% in the second quarter of 2020. Yield on interest earning assets decreased to 3.59% in the second quarter of 2021, down 14 basis points from 3.73% in the first quarter of 2021. Total cost of funds decreased 5 basis points in the second quarter of 2021 to 0.26% from 0.31% in the first quarter of 2021 while the total cost of interest-bearing liabilities decreased 6 basis points to 0.36% from 0.42%. The 2021 second quarter results include the impact of acquisition marks and related accretion for the UCFC acquisition. Interest income includes $1.3 million of accretion and interest expense includes $0.3 million of accretion, which combined added 9 basis points of net interest margin. The second quarter results also include the impact of PPP loans. Interest income includes $3.95 million on average balances of $378.5 million, which increased net interest margin by 5 basis points. Excluding the impact of acquisition marks and PPP loans, net interest margin would be 3.20% for the second quarter of 2021 compared to 3.25% for the first quarter of 2021 and 3.34% for the second quarter of 2020.

"We are pleased by the quarter's net interest income growth that was driven by core loan growth across the board and diligent efforts to reduce our deposit funding costs," said Small. "We anticipate the current, robust deposit environment will be with us for the foreseeable future along with a corresponding expanded securities portfolio. In this difficult rate environment, we will continue to prioritize delivering income growth while taking steps to maintain margins."

Non-interest income down from second quarter of 2020

Premier's non-interest income in the second quarter of 2021 was $17.5 million compared with $23.0 million in the second quarter of 2020. Total mortgage banking income decreased to $2.2 million in the second quarter of 2021 from $9.9 million in the second quarter of 2020. Gains from the sale of mortgage loans decreased to $2.7 million in the second quarter of 2021 from $11.5 million in the second quarter of 2020. While total mortgage loan production has been consistently strong compared to prior year, gains have declined due to compressed margins, a lower saleable mix and less favorable marks on the in-process portfolio. Mortgage loan servicing revenue of $1.9 million in the second quarter of 2021 was consistent with $1.9 million in the second quarter of 2020. Amortization of mortgage servicing rights decreased to $2.0 million in the second quarter of 2021 from $2.2 million in the second quarter of 2020. Premier also had a negative change in the valuation adjustment for mortgage servicing assets of $0.4 million in the second quarter of 2021 compared with a negative adjustment of $1.4 million in the second quarter of 2020. This item closely follows the trend in USTN-10, which declined 29 basis points during the quarter to 1.45% at June 30, 2021.

For the second quarter of 2021, service fees and other charges were $6.3 million, up 12% from $5.6 million in the second quarter of 2020 primarily due to higher ATM and interchange related fees. Revenues from insurance commissions, wealth management and BOLI were generally consistent with prior year totaling $6.5 million in second quarter 2021 compared to $6.6 million in second quarter 2020. Securities gains were $0.7 million in the second quarter of 2021 compared to a loss of $2,000 in the second quarter of 2020. Other non-interest income was $2.0 million in the second quarter of 2021, up from $0.9 million in the second quarter of 2020 primarily due to a $1.3 million non-recurring settlement payment this quarter.

"Residential mortgage new business activity for the quarter continued at the accelerated pace experienced over the past few quarters," said Small. "However, mortgage banking income for the quarter was tempered by a higher percentage of the new business being held in portfolio, tighter pricing and unfavorable marks for the sizable in-process portfolio generated by the very robust production activity of the past two quarters. As we closed the quarter, the percentage of salable business began returning to expected levels, in-process loans were trending down and pricing stabilized leaving us better positioned for the remainder of the year."

Core non-interest expenses up from second quarter of 2020

Total non-interest expense was $38.4 million in the second quarter of 2021, up from $38.0 million in the second quarter of 2020, or up from $35.9 million excluding $2.1 million of acquisition related charges. Compensation and benefits increased to $21.0 million in the second quarter of 2021, compared to $19.6 million in the second quarter of 2020. Occupancy expense was $3.8 million in the second quarter of 2021, down from $4.1 million in the second quarter of 2020. Data processing cost was $3.3 million in the second quarter of 2021, down from $3.8 million in the second quarter of 2020. Amortization of intangibles was $1.6 million in the second quarter of 2021, down from $1.8 million in the second quarter of 2020. Other non-interest expense was $6.9 million in the second quarter of 2021, up from $5.0 million in the second quarter of 2020 partly due to higher costs related to ATM and interchange volumes, loan volumes and travel and entertainment costs.

Credit quality

Non-performing assets totaled $41.3 million, or 0.54% of assets, at June 30, 2021, a decrease from $49.4 million at March 31, 2021, but an increase from $40.0 million at June 30, 2020. Accruing troubled debt restructured loans were $5.9 million at June 30, 2021, compared with $7.9 million at June 30, 2020. Loan delinquencies increased to $9.9 million, or 0.2% of loans, at June 30, 2021, from $9.5 million at March 31, 2021, but decreased from $11.0 million at June 30, 2020.

The 2021 second quarter results include net loan recoveries of $0.2 million and a total provision credit of $3.9 million compared with net loan recoveries of $0.8 million and a total provision expense of $3.0 million for the same period in 2020. The allowance for credit losses on loans as a percentage of total loans was 1.33% at June 30, 2021, or 1.41% excluding PPP loans, compared with 1.37% at March 31, 2021, or 1.49% excluding PPP loans, and 1.62%, or 1.76% excluding PPP loans, at June 30, 2020. The continued economic improvement from the 2020 pandemic-related downturn led to the year-over-year decrease in the provision expense and allowance percentage. As of June 30, 2021, Premier Bank had no commercial loan pandemic-related deferrals, down from $32.4 million at March 31, 2021, and only one retail loan for $13,000, down from $3.4 million at March 31, 2021.

"We are delighted with this quarter's improved asset quality, which included a 16% reduction in non-performing assets," said Paul Nungester, CFO of Premier. "These enhancements along with a second consecutive quarter of recoveries and an even better economic forecast led to a further reduction in our reserve levels. We committed to supporting our clients during the pandemic through our COVID deferral program and are glad to see that they are confident and gaining momentum with essentially all now back in return-to-pay status."

Year to date results

For the six-month period ended June 30, 2021, net income totaled $72.4 million, or $1.94 per diluted common share, compared to $6.6 million, or $0.19 per diluted common share for the six months ended June 30, 2020. Results for the first half of 2020 included five months of income and expenses from UCFC compared to six months in 2021. The year-over-year comparison is also substantially impacted by the prior 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 2021 included a provision credit of $10.9 million, which had an after-tax benefit of $8.6 million, or $0.23 per diluted common share, and no acquisition impact. Additionally, the prior 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 $113.1 million for the first six months of 2021 compared with $99.8 million in the first six months of 2020. Average interest-earning assets increased to $6.71 billion in the first six months of 2021 compared to $5.56 billion in the first six months of 2020. Net interest margin for the first six months of 2021 was 3.39%, down 24 basis points from the 3.63% margin reported in the six-month period ended June 30, 2020. Results include the impact of acquisition marks and related accretion for the UCFC acquisition. For the first six months of 2021, interest income includes $2.6 million of accretion and interest expense includes $0.7 million of accretion, which combined added 10 basis points of net interest margin. The results in the first half of 2021 also include the impact of PPP loans. Interest income includes $9.0 million on average balances of $406.8 million, which increased net interest margin by 7 basis points. Excluding the impact of acquisition marks and PPP loans, net interest margin was 3.22% for the first half of 2021 compared to 3.48% for the first half of 2020.

Non-interest income for the first six months of 2021 was $43.8 million compared to $37.0 million during the same period of 2020. Service fees and other charges were $11.8 million for the first six months of 2021, up from $10.8 million during the same period of 2020. Mortgage banking income was $12.7 million for the first six months of 2021, up from $10.7 million during the same period of 2020. Insurance commissions were $8.9 million for the first six months of 2021 compared with $9.2 million for the same period of 2020. Wealth management income was $3.3 million for the first six months of 2021, up from $2.9 million during the same period of 2020. Securities gains were $2.8 million for the first six months of 2021 compared to a loss of $2,000 for the same period in 2020. Approximately $2.0 million of the gain was related to the sale of securities where the Company took advantage of pricing to realize gains and reinvested in a mix of new securities that will generate the higher income over the next three years. The other $0.8 million was related to unrealized gains on our trading securities due to the improved market for these financial institution equities. BOLI income increased to $2.0 million in the first half of 2021, including $0.3 million of claim gains, compared to $1.6 million and no claim gains in the first half of 2020. Other non-interest income for the first half of 2021 was $2.3 million compared to $1.6 million in 2020.

Non-interest expense was $77.2 million for the first six months of 2021 compared to $80.3 million, or $66.7 million excluding acquisition-related charges, for the same period of 2020. Compensation and benefits expense was $43.0 million for the first six months of 2021 compared with $37.2 million during the same period of 2020. Expenses also included net increases of $1.0 million for occupancy, FDIC insurance premiums, financial institution taxes, data processing and amortization of intangibles and $3.5 million for other expenses.

Total assets at $7.59 billion

Total assets at June 30, 2021, were $7.59 billion compared to $7.53 billion at March 31, 2021, and $7.01 billion at June 30, 2020. Gross loans receivable (including loans held for sale) were $5.55 billion at June 30, 2021, compared to $5.68 billion at March 31, 2021, and $5.62 billion at June 30, 2020. At June 30, 2021, gross loans receivable decreased $70.2 million from a year ago due to a $147.2 million decrease in PPP loans. Excluding PPP, loans grew $77.0 million organically, or 1.5% from a year ago. Commercial loans excluding PPP increased $113.2 million from June 30, 2020, to 2021, or 3.4%, despite a $45.4 million decrease in lines of credit. Securities at June 30, 2021, were $1.29 billion compared to $932.3 million at March 31, 2021, and $567.5 million at June 30, 2020. Also, at June 30, 2021, goodwill and other intangible assets totaled $345.1 million compared to $346.7 million at March 31, 2021, and $351.7 million at June 30, 2020, with the decrease attributable to intangibles amortization.

Total deposits at June 30, 2021, were $6.29 billion compared with $6.35 billion at March 31, 2021, and $5.76 billion at June 30, 2020. At June 30, 2021, total deposits grew $0.53 billion organically, or 9.2% from a year ago.

Total stockholders' equity was $1.03 billion at June 30, 2021, compared to $998.2 million at March 31, 2021, and $941.0 million at June 30, 2020. The increase in stockholders' equity from the prior year was primarily due to net earnings. The Company also completed the repurchase of 126,366 common shares for $3.8 million during the second quarter of 2021. At June 30, 2021, 1,834,434 common shares remained available for repurchase under the Company's existing authorization.

Dividend to be paid August 27

The Board of Directors declared a quarterly cash dividend of $0.27 per common share payable August 27, 2021, to shareholders of record at the close of business on August 20, 2021. The dividend represents an annual dividend of 4.0 percent based on the Premier common stock closing price on July 28, 2021. Premier has approximately 37,179,000 common shares outstanding.

Conference call

Premier will host a conference call at 11:00 a.m. ET on Friday, July 30, 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/pfc210730.html. The replay of the conference call will be available at www.PremierFinCorp.com for one year.

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. For more information, visit the company's website at PremierFinCorp.com.

Financial Statements and Highlights Follow-

Safe Harbor Statement

This document may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These statements may include, but are not limited to, statements regarding projections, forecasts, goals and plans of Premier Financial Corp. and its management, future movements of interests, loan or deposit production levels, future credit quality ratios, future strength in the market area, and growth projections. These statements do not describe historical or current facts and may be identified by words such as "intend," "intent," "believe," "expect," "estimate," "target," "plan," "anticipate," or similar words or phrases, or future or conditional verbs such as "will," "would," "should," "could," "might," "may," "can," or similar verbs. There can be no assurances that the forward-looking statements included in this presentation will prove to be accurate. In light of the significant uncertainties in the forward-looking statements, 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. Forward-looking statements involve numerous risks and uncertainties, any one or more of which could affect Premier's business and financial results in future periods and could cause actual results to differ materially from plans and projections. These risks and uncertainties include, but not limited to: impacts from the novel coronavirus (COVID-19) pandemic on the economy, financial markets, our customers, and our business and results of operation; changes in interest rates; disruptions in the mortgage market; risks and uncertainties inherent in general and local banking, insurance and mortgage conditions; political uncertainty; uncertainty in U.S. fiscal or monetary policy; uncertainty concerning or disruptions relating to tensions surrounding the current socioeconomic landscape; competitive factors specific to markets in which Premier operates; increasing competition for financial products from other financial institutions and nonbank financial technology companies; legislative or regulatory rulemaking or actions; capital market conditions; security breaches or unauthorized disclosure of confidential customer or Company information; interruptions in the effective operation of information and transaction processing systems of Premier or Premier's vendors and service providers; failures or delays in integrating or adopting new technology; the impact of the cessation of LIBOR interest rates and implementation of a replacement rate; and other risks and uncertainties detailed from time to time in our Securities and Exchange Commission (SEC) filings, including our Annual Report on Form 10-K for the year ended December 31, 2020. All forward-looking statements made in this presentation 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, 2021, 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) 2021 2020

AssetsCash and cash equivalentsCash and amounts due from depository institutions $ 63,790 $ 79,593

Interest-bearing deposits 67,718 79,673

131,508 159,266

Available-for sale, carried at fair value 1,279,128 736,654

Trading securities, carried at fair value 12,945 1,090

Securities investments 1,292,073 737,744

Loans 5,348,400 5,491,240

Allowance for credit losses - loans (71,367 ) (82,079 )

Loans, net 5,277,033 5,409,161

Loans held for sale 199,070 221,616

Mortgage servicing rights 18,041 13,153

Accrued interest receivable 23,459 25,434

Federal Home Loan Bank stock 12,747 16,026

Bank Owned Life Insurance 145,919 144,784

Office properties and equipment 56,259 58,665

Real estate and other assets held for sale 45 343

Goodwill 317,948 317,948

Core deposit and other intangibles 27,140 30,337

Other assets 92,478 77,257

Total Assets $ 7,593,720 $ 7,211,734

Liabilities and Stockholders' EquityNon-interest-bearing deposits $ 1,649,664 $ 1,597,262

Interest-bearing deposits 4,641,795 4,450,579

Total deposits 6,291,459 6,047,841

Advances from FHLB and PPPLF 105,000 -

Notes payable and other interest-bearing - - liabilitiesSubordinated debentures 84,913 84,860

Advance payments by borrowers for tax and 19,474 21,748 insuranceReserve for credit losses - unfunded commitments 5,613 5,350

Other liabilities 59,558 69,659

Total Liabilities 6,566,017 6,229,458

Stockholders' EquityPreferred stock - -

Common stock, net 306 306

Additional paid-in-capital 689,785 689,390

Accumulated other comprehensive income (loss) 10,953 15,004

Retained earnings 410,153 356,414

Treasury stock, at cost (83,494 ) (78,838 )

Total stockholders' equity 1,027,703 982,276

Total Liabilities and Stockholders' Equity $ 7,593,720 $ 7,211,734

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

Six Months Ended

June 30,

June 30,

(in thousands, except per share amounts)2021

2020

2021

2020

Interest Income:Loans$

55,772

$

58,796

$

113,338

$

110,256

Investment securities4,994

2,923

8,674

5,641

Interest-bearing deposits42

79

108

309

FHLB stock dividends56

651

115

766

Total interest income60,864

62,449

122,235

116,972

Interest Expense:Deposits3,559

7,435

7,723

15,206

FHLB advances and other12

516

12

1,523

Subordinated debentures674

179

1,369

452

Notes Payable-

15

-

24

Total interest expense4,245

8,145

9,104

17,205

Net interest income56,619

54,304

113,131

99,767

Provision (benefit) for credit losses - loans(3,631

)

1,868

(11,145

)

45,655

Provision (benefit) for credit losses - unfunded commitments(288

)

1,107

263

2,565

Total provision (benefit) for credit losses(3,919

)

2,975

(10,882

)

48,220

Net interest income after provision60,538

51,329

124,013

51,547

Non-interest Income:Service fees and other charges6,282

5,614

11,751

10,797

Mortgage banking income2,157

9,868

12,691

10,716

Gain on sale of non-mortgage loans-

-

-

234

Gain (loss) on sale of available for sale securities1,469

(2

)

1,985

(2

)

Gain (loss) on trading securities(808

)

-

802

-

Insurance commissions4,059

4,005

8,940

9,160

Wealth management income1,566

1,802

3,322

2,893

Income from Bank Owned Life Insurance859

838

2,028

1,619

Other non-interest income1,961

890

2,301

1,597

Total Non-interest Income17,545

23,015

43,820

37,014

Non-interest Expense:Compensation and benefits21,046

19,575

43,044

37,160

Occupancy3,837

4,128

7,949

7,859

FDIC insurance premium522

411

1,420

903

Financial institutions tax1,177

1,116

2,367

1,950

Data processing3,334

3,805

6,716

6,845

Amortization of intangibles1,575

1,809

3,197

3,054

Acquisition related charges-

2,099

-

13,585

Other non-interest expense6,884

5,041

12,485

8,937

Total Non-interest Expense38,375

37,984

77,178

80,293

Income (loss) before income taxes39,708

36,360

90,655

8,268

Income tax expense (benefit)8,323

7,303

18,274

1,693

Net Income (Loss)$

31,385

$

29,057

$

72,381

$

6,575

Earnings (loss) per common share:Basic$

0.84

$

0.78

$

1.94

$

0.19

Diluted$

0.84

$

0.78

$

1.94

$

0.19

Average Shares Outstanding:Basic37,276

37,290

37,274

34,484

Diluted37,358

37,323

37,351

34,526

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

June 30, June 30,

(in thousands, except per 2021 2020 2021 2020 share amounts)Interest Income:Loans $ 55,772 $ 58,796 $ 113,338 $ 110,256

Investment securities 4,994 2,923 8,674 5,641

Interest-bearing deposits 42 79 108 309

FHLB stock dividends 56 651 115 766

Total interest income 60,864 62,449 122,235 116,972

Interest Expense:Deposits 3,559 7,435 7,723 15,206

FHLB advances and other 12 516 12 1,523

Subordinated debentures 674 179 1,369 452

Notes Payable - 15 - 24

Total interest expense 4,245 8,145 9,104 17,205

Net interest income 56,619 54,304 113,131 99,767

Provision (benefit) for (3,631 ) 1,868 (11,145 ) 45,655 credit losses - loansProvision (benefit) for (288 ) 1,107 263 2,565 credit losses - unfundedcommitmentsTotal provision (benefit) (3,919 ) 2,975 (10,882 ) 48,220 for credit lossesNet interest income after 60,538 51,329 124,013 51,547 provisionNon-interest Income:Service fees and other 6,282 5,614 11,751 10,797 chargesMortgage banking income 2,157 9,868 12,691 10,716

Gain on sale of - - - 234 non-mortgage loansGain (loss) on sale of 1,469 (2 ) 1,985 (2 )available for salesecuritiesGain (loss) on trading (808 ) - 802 - securitiesInsurance commissions 4,059 4,005 8,940 9,160

Wealth management income 1,566 1,802 3,322 2,893

Income from Bank Owned Life 859 838 2,028 1,619 InsuranceOther non-interest income 1,961 890 2,301 1,597

Total Non-interest Income 17,545 23,015 43,820 37,014

Non-interest Expense:Compensation and benefits 21,046 19,575 43,044 37,160

Occupancy 3,837 4,128 7,949 7,859

FDIC insurance premium 522 411 1,420 903

Financial institutions tax 1,177 1,116 2,367 1,950

Data processing 3,334 3,805 6,716 6,845

Amortization of intangibles 1,575 1,809 3,197 3,054

Acquisition related charges - 2,099 - 13,585

Other non-interest expense 6,884 5,041 12,485 8,937

Total Non-interest Expense 38,375 37,984 77,178 80,293

Income (loss) before income 39,708 36,360 90,655 8,268 taxesIncome tax expense 8,323 7,303 18,274 1,693 (benefit)Net Income (Loss) $ 31,385 $ 29,057 $ 72,381 $ 6,575

Earnings (loss) per commonshare:Basic $ 0.84 $ 0.78 $ 1.94 $ 0.19

Diluted $ 0.84 $ 0.78 $ 1.94 $ 0.19

Average Shares Outstanding:Basic 37,276 37,290 37,274 34,484

Diluted 37,358 37,323 37,351 34,526

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

Six Months Ended

June 30,

June 30,

(dollars in thousands, except per share data)2021

2020

% change

2021

2020

% change

Summary of OperationsTax-equivalent interest income (2)$

61,134

$

62,705

(2.5

)

$

122,742

$

117,479

4.5

Interest expense4,245

8,145

(47.9

)

9,104

17,205

(47.1

)

Tax-equivalent net interest income (2)56,889

54,560

4.3

113,638

100,274

13.3

Provision (benefit) for credit losses(3,919

)

2,975

(231.7

)

(10,882

)

48,220

(122.6

)

Core provision (benefit) for credit losses (4)(3,919

)

2,975

(231.7

)

(10,882

)

22,271

(148.9

)

Investment securities gains (losses)661

(2

)

NM

2,787

(2

)

NM

Non-interest income (excluding securities gains/losses)16,884

23,017

(26.6

)

41,033

37,016

10.9

Non-interest expense38,375

37,984

1.0

77,178

80,293

(3.9

)

Core non-interest expense (4)38,375

35,885

6.9

77,178

66,708

15.7

Income tax expense (benefit)8,323

7,303

14.0

18,274

1,693

979.4

Net income (loss)31,385

29,057

8.0

72,381

6,575

1,000.9

Core net income (4)31,385

30,715

2.2

72,381

38,185

89.6

Tax equivalent adjustment (2)270

256

5.5

507

507

-

At Period EndAssets7,593,720

7,013,811

8.3

Earning assets6,920,008

6,345,655

9.1

Loans5,348,400

5,457,238

(2.0

)

Allowance for credit losses - loans71,367

88,555

(19.4

)

Deposits6,291,459

5,759,843

9.2

Stockholders' equity1,027,703

940,968

9.2

Average BalancesAssets7,549,531

7,005,783

7.8

7,444,791

6,185,668

20.4

Earning assets6,806,275

6,247,037

9.0

6,709,348

5,559,542

20.7

Loans5,495,782

5,389,805

2.0

5,562,379

4,862,410

14.4

Deposits and interest-bearing liabilities6,454,731

5,963,127

8.2

6,365,441

5,232,503

21.7

Deposits6,339,673

5,490,986

15.5

6,265,394

4,872,267

28.6

Stockholders' equity1,006,757

932,793

7.9

989,800

858,894

15.2

Stockholders' equity / assets13.34

%

13.31

%

0.2

13.30

%

13.89

%

(4.2

)

Per Common Share DataNet Income (Loss)Basic$

0.84

$

0.78

7.7

$

1.94

$

0.19

921.1

Diluted0.84

0.78

7.7

1.94

0.19

921.1

Core diluted (4)0.84

0.82

2.4

1.94

1.11

74.8

Dividends Paid0.26

0.22

18.2

0.50

0.44

13.6

Market Value:High$

33.97

$

20.11

68.9

$

35.90

$

31.95

12.4

Low27.76

12.95

114.4

22.23

11.50

93.3

Close28.41

17.67

60.8

28.41

17.67

60.8

Common Book Value27.64

25.23

9.6

27.64

25.23

9.6

Tangible Common Book Value (1)18.36

15.80

16.2

18.36

15.80

16.2

Shares outstanding, end of period (000s)37,178

37,296

(0.3

)

37,178

37,296

(0.3

)

Performance Ratios (annualized)Tax-equivalent net interest margin (2)3.34

%

3.51

%

(4.8

)

3.39

%

3.63

%

(6.6

)

Return on average assets1.67

%

1.67

%

(0.2

)

1.96

%

0.21

%

833.6

Core return on average assets (4)1.67

%

1.76

%

(5.4

)

1.96

%

1.24

%

57.9

Return on average equity12.50

%

12.53

%

(0.2

)

14.75

%

1.54

%

857.6

Core return on average equity (4)12.50

%

13.24

%

(5.6

)

14.75

%

8.94

%

64.9

Return on average tangible equity19.05

%

20.13

%

(5.4

)

22.70

%

2.40

%

844.1

Core return on average tangible equity (4)19.05

%

21.28

%

(10.5

)

22.70

%

14.00

%

62.1

Efficiency ratio (3)52.02

%

48.96

%

6.2

49.90

%

58.48

%

(14.7

)

Core efficiency ratio (4)52.02

%

46.26

%

12.5

49.90

%

48.59

%

2.7

Effective tax rate20.96

%

20.09

%

4.3

20.16

%

20.48

%

(1.6

)

Dividend payout ratio (core)30.95

%

26.83

%

15.4

25.77

%

39.64

%

(35.0

)

PremierFinancial Corp.FinancialSummary andComparison(Unaudited) Three Months Ended Six Months Ended

June 30, June 30,

(dollars inthousands, 2021 2020 % change 2021 2020 % changeexcept per sharedata)Summary ofOperations Tax-equivalent $ 61,134 $ 62,705 (2.5 ) $ 122,742 $ 117,479 4.5 interest income(2)Interest expense 4,245 8,145 (47.9 ) 9,104 17,205 (47.1 )

Tax-equivalent 56,889 54,560 4.3 113,638 100,274 13.3 net interestincome (2)Provision (3,919 ) 2,975 (231.7 ) (10,882 ) 48,220 (122.6 )(benefit) forcredit lossesCore provision(benefit) for (3,919 ) 2,975 (231.7 ) (10,882 ) 22,271 (148.9 )credit losses(4)Investment 661 (2 ) NM 2,787 (2 ) NM securities gains(losses)Non-interestincome 16,884 23,017 (26.6 ) 41,033 37,016 10.9 (excludingsecurities gains/losses)Non-interest 38,375 37,984 1.0 77,178 80,293 (3.9 )expenseCore 38,375 35,885 6.9 77,178 66,708 15.7 non-interestexpense (4)Income tax 8,323 7,303 14.0 18,274 1,693 979.4 expense(benefit)Net income 31,385 29,057 8.0 72,381 6,575 1,000.9 (loss)Core net income 31,385 30,715 2.2 72,381 38,185 89.6 (4)Tax equivalent 270 256 5.5 507 507 - adjustment (2)At Period EndAssets 7,593,720 7,013,811 8.3

Earning assets 6,920,008 6,345,655 9.1

Loans 5,348,400 5,457,238 (2.0 )

Allowance for 71,367 88,555 (19.4 )credit losses -loansDeposits 6,291,459 5,759,843 9.2

Stockholders' 1,027,703 940,968 9.2 equityAverage BalancesAssets 7,549,531 7,005,783 7.8 7,444,791 6,185,668 20.4

Earning assets 6,806,275 6,247,037 9.0 6,709,348 5,559,542 20.7

Loans 5,495,782 5,389,805 2.0 5,562,379 4,862,410 14.4

Deposits and 6,454,731 5,963,127 8.2 6,365,441 5,232,503 21.7 interest-bearingliabilitiesDeposits 6,339,673 5,490,986 15.5 6,265,394 4,872,267 28.6

Stockholders' 1,006,757 932,793 7.9 989,800 858,894 15.2 equityStockholders' 13.34 % 13.31 % 0.2 13.30 % 13.89 % (4.2 )equity / assetsPer Common ShareDataNet Income(Loss)Basic $ 0.84 $ 0.78 7.7 $ 1.94 $ 0.19 921.1

Diluted 0.84 0.78 7.7 1.94 0.19 921.1

Core diluted (4) 0.84 0.82 2.4 1.94 1.11 74.8

Dividends Paid 0.26 0.22 18.2 0.50 0.44 13.6

Market Value:High $ 33.97 $ 20.11 68.9 $ 35.90 $ 31.95 12.4

Low 27.76 12.95 114.4 22.23 11.50 93.3

Close 28.41 17.67 60.8 28.41 17.67 60.8

Common Book 27.64 25.23 9.6 27.64 25.23 9.6 ValueTangible Common 18.36 15.80 16.2 18.36 15.80 16.2 Book Value (1)Shares 37,178 37,296 (0.3 ) 37,178 37,296 (0.3 )outstanding, endof period (000s)PerformanceRatios(annualized)Tax-equivalent 3.34 % 3.51 % (4.8 ) 3.39 % 3.63 % (6.6 )net interestmargin (2)Return on 1.67 % 1.67 % (0.2 ) 1.96 % 0.21 % 833.6 average assetsCore return on 1.67 % 1.76 % (5.4 ) 1.96 % 1.24 % 57.9 average assets(4)Return on 12.50 % 12.53 % (0.2 ) 14.75 % 1.54 % 857.6 average equityCore return on 12.50 % 13.24 % (5.6 ) 14.75 % 8.94 % 64.9 average equity(4)Return on 19.05 % 20.13 % (5.4 ) 22.70 % 2.40 % 844.1 average tangibleequityCore return on 19.05 % 21.28 % (10.5 ) 22.70 % 14.00 % 62.1 average tangibleequity (4)Efficiency ratio 52.02 % 48.96 % 6.2 49.90 % 58.48 % (14.7 )(3)Core efficiency 52.02 % 46.26 % 12.5 49.90 % 48.59 % 2.7 ratio (4)Effective tax 20.96 % 20.09 % 4.3 20.16 % 20.48 % (1.6 )rateDividend payout 30.95 % 26.83 % 15.4 25.77 % 39.64 % (35.0 )ratio (core)Note: Year-to-date 2020 results include five months of operations from UCFC compared to six for comparable period in 2021.(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: Year-to-date 2020 results include five months of operations from UCFCcompared to six for comparable period in 2021.(1) Tangible common book value = total stockholders' equity less the sum ofgoodwill, core deposit and other intangibles, and preferred stock divided byshares outstanding at the end of the period.(2) Interest income on tax-exempt securities and loans has been adjusted to atax-equivalent basis using the statutory federal income tax rate of 21%.(3) Efficiency ratio = Non-interest expense divided by sum of tax-equivalentnet interest income plus non-interest income, excluding securities gains orlosses, net.(4) Core items exclude the impact of acquisition related provision ("CECLdouble-dip") and other charges. See non-GAAP reconciliations.NM Percentage change not meaningfulPremier Financial Corp.(dollars in thousands)Three Months Ended

Six Months Ended

June 30,

June 30,

Mortgage Banking Summary2021

2020

2021

2020

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

2,670

$

11,530

$

8,310

$

16,432

Mortgage loan servicing revenue (expense):Mortgage loan servicing revenue1,887

1,888

3,805

3,482

Amortization of mortgage servicing rights(1,953

)

(2,181

)

(4,297

)

(3,344

)

Mortgage servicing rights valuation adjustments(447

)

(1,369

)

4,873

(5,854

)

(513

)

(1,662

)

4,381

(5,716

)

Total revenue from sale and servicing of mortgage loans$

2,157

$

9,868

$

12,691

$

10,716

Mortgage servicing rights:Balance at beginning of period$

21,696

$

20,761

$

21,666

$

10,801

Loans sold, servicing retained1,938

2,454

4,312

3,830

Mortgage servicing rights acquired-

-

-

9,747

Amortization(1,953

)

(2,181

)

(4,297

)

(3,344

)

Carrying value before valuation allowance at end of period21,681

21,034

21,681

21,034

Valuation allowance:Balance at beginning of period(3,193

)

(5,019

)

(8,513

)

(534

)

Impairment recovery (charges)(447

)

(1,369

)

4,873

(5,854

)

Balance at end of period(3,640

)

(6,388

)

(3,640

)

(6,388

)

Net carrying value at end of period$

18,041

$

14,646

$

18,041

$

14,646

COVID-19 Deferrals Update6/30/2021

3/31/2021

12/31/2020

9/30/2020

6/30/2020

3/31/2020

Commercial loan deferrals$

-

$

32,370

$

46,038

$

434,554

$

739,632

$

47,197

% of commercial loans0.0

%

0.8

%

1.2

%

11.4

%

19.7

%

1.4

%

% of total loans0.0

%

0.6

%

0.8

%

7.9

%

13.5

%

0.9

%

Retail loan deferrals$

13

$

3,414

$

7,412

$

48,187

$

73,266

$

13

% of retail loans0.0

%

0.2

%

0.4

%

2.9

%

4.3

%

0.0

%

% of total loans0.0

%

0.1

%

0.1

%

0.9

%

1.3

%

0.0

%

Total loan deferrals$

13

$

35,784

$

53,450

$

482,741

$

812,898

$

47,210

% of total loans0.0

%

0.7

%

1.0

%

8.8

%

14.9

%

0.9

%

Commercial Loan Deferral Rollforward3/31/21BalanceNewDeferralsPayoffs/ChangesReturn toPay(1)6/30/21Balance2Q21ExtensionsInterest only 1-3 months$

12,412

$

-

$

(22

)

$

(12,390

)

$

-

$

-

Interest only 4-5 months74

-

(1

)

(73

)

-

-

Interest only 6 months19,828

-

(5

)

(19,823

)

-

-

Deferred payment 1-90 days56

-

(1

)

(55

)

-

-

Deferred payment 91-179 days-

-

-

-

-

-

Deferred payment 180 days-

-

-

-

-

-

Total$

32,370

$

-

$

(29

)

$

(32,341

)

$

-

$

-

Commercial Loan Deferral Expirations Update6/30/21BalanceJuly$

-

August-

September-

October-

November-

December-

Total$

-

PremierFinancialCorp.(dollars inthousands) Three Months Ended Six Months Ended

June 30, June 30,

Mortgage 2021 2020 2021 2020 BankingSummaryRevenue fromsales andservicing ofmortgageloans:Gain fromsale of $ 2,670 $ 11,530 $ 8,310 $ 16,432 mortgageloansMortgageloanservicingrevenue(expense):Mortgageloan 1,887 1,888 3,805 3,482 servicingrevenueAmortizationof mortgage (1,953 ) (2,181 ) (4,297 ) (3,344 )servicingrightsMortgageservicing (447 ) (1,369 ) 4,873 (5,854 )rightsvaluationadjustments (513 ) (1,662 ) 4,381 (5,716 )

Totalrevenue fromsale and $ 2,157 $ 9,868 $ 12,691 $ 10,716 servicing ofmortgageloans Mortgageservicingrights:Balance at $ 21,696 $ 20,761 $ 21,666 $ 10,801 beginning ofperiodLoans sold, 1,938 2,454 4,312 3,830 servicingretainedMortgageservicing - - - 9,747 rightsacquiredAmortization (1,953 ) (2,181 ) (4,297 ) (3,344 )

Carryingvalue beforevaluation 21,681 21,034 21,681 21,034 allowance atend ofperiodValuationallowance:Balance at (3,193 ) (5,019 ) (8,513 ) (534 )beginning ofperiodImpairment (447 ) (1,369 ) 4,873 (5,854 )recovery(charges)Balance at (3,640 ) (6,388 ) (3,640 ) (6,388 )end ofperiodNet carrying $ 18,041 $ 14,646 $ 18,041 $ 14,646 value at endof period COVID-19 6/30/2021 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020DeferralsUpdateCommercial $ - $ 32,370 $ 46,038 $ 434,554 $ 739,632 $ 47,197 loandeferrals% of 0.0 % 0.8 % 1.2 % 11.4 % 19.7 % 1.4 %commercialloans% of total 0.0 % 0.6 % 0.8 % 7.9 % 13.5 % 0.9 %loansRetail loan $ 13 $ 3,414 $ 7,412 $ 48,187 $ 73,266 $ 13 deferrals% of retail 0.0 % 0.2 % 0.4 % 2.9 % 4.3 % 0.0 %loans% of total 0.0 % 0.1 % 0.1 % 0.9 % 1.3 % 0.0 %loansTotal loan $ 13 $ 35,784 $ 53,450 $ 482,741 $ 812,898 $ 47,210 deferrals% of total 0.0 % 0.7 % 1.0 % 8.8 % 14.9 % 0.9 %loans CommercialLoan 3/31/21 New Payoffs/ Return to 6/30/21 2Q21Deferral Balance Deferrals Changes Pay^(1) Balance ExtensionsRollforwardInterest $ 12,412 $ - $ (22 ) $ (12,390 ) $ - $ - only 1-3monthsInterest 74 - (1 ) (73 ) - - only 4-5monthsInterest 19,828 - (5 ) (19,823 ) - - only 6monthsDeferred 56 - (1 ) (55 ) - - payment 1-90daysDeferred - - - - - - payment91-179 daysDeferred - - - - - - payment 180daysTotal $ 32,370 $ - $ (29 ) $ (32,341 ) $ - $ -

CommercialLoan 6/30/21Deferral BalanceExpirationsUpdateJuly $ -

August -

September -

October -

November -

December -

Total $ -

Note: Year-to-date 2020 results include five months of operations from UCFC compared to six for comparable periods in 2021(1) Represents 100% of previously disclosed second quarter 2021 scheduled expirations.Note: Year-to-date 2020 results include five months of operations from UCFCcompared to six for comparable periods in 2021(1) Represents 100% of previously disclosed second quarter 2021 scheduledexpirations.Premier Financial Corp.Yield AnalysisThree Months Ended June 30,

(dollars in thousands)

2021

2020

Average

Yield

Average

Yield

Balance

Interest(1)

Rate(2)

Balance

Interest(1)

Rate(2)

Interest-earning assets:Loans receivable$

5,495,782

$

55,786

4.06

%

$

5,389,805

$

58,819

4.39

%

Securities1,193,363

5,250

1.76

%

523,360

3,156

2.48

%

(3)

Interest Bearing Deposits106,025

42

0.16

%

260,586

79

0.12

%

FHLB stock11,105

56

2.02

%

73,286

651

3.57

%

Total interest-earning assets6,806,275

61,134

3.59

%

6,247,037

62,705

4.04

%

Non-interest-earning assets743,256

758,746

Total assets$

7,549,531

$

7,005,783

Deposits and Interest-bearing liabilities:Interest bearing deposits$

4,640,196

$

3,559

0.31

%

$

4,144,699

$

7,435

0.72

%

FHLB advances and other30,165

12

0.16

%

420,784

516

0.49

%

Subordinated debentures84,893

674

3.18

%

36,083

179

2.00

%

Notes payable-

-

-

15,274

15

0.39

%

Total interest-bearing liabilities4,755,254

4,245

0.36

%

4,616,840

8,145

0.71

%

Non-interest bearing deposits1,699,477

-

-

1,346,287

-

-

Total including non-interest-bearing deposits6,454,731

4,245

0.26

%

5,963,127

8,145

0.55

%

Other non-interest-bearing liabilities88,043

109,863

Total liabilities6,542,774

6,072,990

Stockholders' equity1,006,757

932,793

Total liabilities and stockholders' equity$

7,549,531

$

7,005,783

Net interest income; interest rate spread$

56,889

3.23

%

$

54,560

3.33

%

Net interest margin (4)3.34

%

3.51

%

Average interest-earning assets to average interest bearing liabilities143

%

135

%

Six Months Ended June 30,

2021

2020

Average

Yield

Average

Yield

Balance

Interest(1)

Rate(2)

Balance

Interest(1)

Rate(2)

Interest-earning assets:Loans receivable$

5,562,379

$

113,366

4.08

%

$

4,862,410

$

110,304

4.55

%

Securities1,009,695

9,153

1.81

%

482,839

6,100

2.57

%

(3)

Interest Bearing Deposits125,732

108

0.17

%

164,662

309

0.38

%

FHLB stock11,542

115

1.99

%

49,631

766

3.10

%

Total interest-earning assets6,709,348

122,742

3.66

%

5,559,542

117,479

4.24

%

Non-interest-earning assets735,443

626,126

Total assets$

7,444,791

$

6,185,668

Deposits and Interest-bearing liabilities:Interest bearing deposits$

4,593,493

$

7,723

0.34

%

$

3,750,226

$

15,206

0.81

%

FHLB advances and other15,166

12

0.16

%

315,337

1,523

0.97

%

Subordinated debentures84,881

1,369

3.23

%

36,083

452

2.51

%

Notes payable-

-

-

8,816

24

0.55

%

Total interest-bearing liabilities4,693,540

9,104

0.39

%

4,110,462

17,205

0.84

%

Non-interest bearing deposits1,671,901

-

-

1,122,041

-

-

Total including non-interest-bearing deposits6,365,441

9,104

0.29

%

5,232,503

17,205

0.66

%

Other non-interest-bearing liabilities89,550

94,271

Total liabilities6,454,991

5,326,774

Stockholders' equity989,800

858,894

Total liabilities and stockholders' equity$

7,444,791

$

6,185,668

Net interest income; interest rate spread$

113,638

3.27

%

$

100,274

3.40

%

Net interest margin (4)3.39

%

3.63

%

Average interest-earning assets to average interest bearing liabilities143

%

135

%

Premier FinancialCorp.Yield Analysis Three Months Ended June 30,

(dollars in thousands)

2021 2020

Average Yield Average Yield

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

Interest-earningassets:Loans receivable $ 5,495,782 $ 55,786 4.06 % $ 5,389,805 $ 58,819 4.39 %

Securities 1,193,363 5,250 1.76 % 523,360 3,156 2.48 % (3)

Interest Bearing 106,025 42 0.16 % 260,586 79 0.12 %DepositsFHLB stock 11,105 56 2.02 % 73,286 651 3.57 %

Total 6,806,275 61,134 3.59 % 6,247,037 62,705 4.04 %interest-earningassetsNon-interest-earning 743,256 758,746assetsTotal assets $ 7,549,531 $ 7,005,783

Deposits andInterest-bearingliabilities:Interest bearing $ 4,640,196 $ 3,559 0.31 % $ 4,144,699 $ 7,435 0.72 %depositsFHLB advances and 30,165 12 0.16 % 420,784 516 0.49 %otherSubordinated 84,893 674 3.18 % 36,083 179 2.00 %debenturesNotes payable - - - 15,274 15 0.39 %

Total 4,755,254 4,245 0.36 % 4,616,840 8,145 0.71 %interest-bearingliabilitiesNon-interest bearing 1,699,477 - - 1,346,287 - - depositsTotal including 6,454,731 4,245 0.26 % 5,963,127 8,145 0.55 %non-interest-bearingdepositsOther 88,043 109,863non-interest-bearingliabilitiesTotal liabilities 6,542,774 6,072,990

Stockholders' equity 1,006,757 932,793

Total liabilities $ 7,549,531 $ 7,005,783and stockholders'equityNet interest income; $ 56,889 3.23 % $ 54,560 3.33 %interest rate spreadNet interest margin 3.34 % 3.51 %(4)Averageinterest-earning 143 % 135 %assets to averageinterest bearingliabilities Six Months Ended June 30,

2021 2020

Average Yield Average Yield

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

Interest-earningassets:Loans receivable $ 5,562,379 $ 113,366 4.08 % $ 4,862,410 $ 110,304 4.55 %

Securities 1,009,695 9,153 1.81 % 482,839 6,100 2.57 % (3)

Interest Bearing 125,732 108 0.17 % 164,662 309 0.38 %DepositsFHLB stock 11,542 115 1.99 % 49,631 766 3.10 %

Total 6,709,348 122,742 3.66 % 5,559,542 117,479 4.24 %interest-earningassetsNon-interest-earning 735,443 626,126assetsTotal assets $ 7,444,791 $ 6,185,668

Deposits andInterest-bearingliabilities:Interest bearing $ 4,593,493 $ 7,723 0.34 % $ 3,750,226 $ 15,206 0.81 %depositsFHLB advances and 15,166 12 0.16 % 315,337 1,523 0.97 %otherSubordinated 84,881 1,369 3.23 % 36,083 452 2.51 %debenturesNotes payable - - - 8,816 24 0.55 %

Total 4,693,540 9,104 0.39 % 4,110,462 17,205 0.84 %interest-bearingliabilitiesNon-interest bearing 1,671,901 - - 1,122,041 - - depositsTotal including 6,365,441 9,104 0.29 % 5,232,503 17,205 0.66 %non-interest-bearingdepositsOther 89,550 94,271non-interest-bearingliabilitiesTotal liabilities 6,454,991 5,326,774

Stockholders' equity 989,800 858,894

Total liabilities $ 7,444,791 $ 6,185,668and stockholders'equityNet interest income; $ 113,638 3.27 % $ 100,274 3.40 %interest rate spreadNet interest margin 3.39 % 3.63 %(4)Averageinterest-earning 143 % 135 %assets to averageinterest bearingliabilitiesNote: Year-to-date 2020 results include five months of operations from UCFC compared to six for comparable period in 2021.(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: Year-to-date 2020 results include five months of operations from UCFCcompared to six for comparable period in 2021.(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.Premier Financial Corp.Selected Quarterly Information(dollars in thousands, except per share data)2nd Qtr 20211st Qtr 20214th Qtr 20203rd Qtr 20202nd Qtr 2020Summary of OperationsTax-equivalent interest income (1)$

61,134

$

61,609

$

61,067

$

60,418

$

62,705

Interest expense4,245

4,859

5,849

6,888

8,145

Tax-equivalent net interest income (1)56,889

56,750

55,218

53,530

54,560

Provision (benefit) for credit losses(3,919

)

(6,963

)

(6,764

)

2,794

2,975

Core provision (benefit) for credit losses (3)(3,919

)

(6,963

)

(6,764

)

2,794

2,975

Investment securities gains (losses)661

2,126

76

1,480

(2

)

Non-interest income (excluding securities gains/losses)16,884

24,149

18,594

23,520

23,017

Non-interest expense38,375

38,803

41,313

43,563

37,984

Core non-interest expense (3)38,375

38,803

39,123

38,445

35,885

Income tax expense (benefit)8,323

9,952

8,240

6,259

7,303

Net income (loss)31,385

40,996

30,848

25,655

29,057

Core net income (3)31,385

40,996

32,577

28,587

30,715

Tax equivalent adjustment (1)270

237

251

259

256

At Period EndTotal assets$

7,593,720

$

7,530,462

$

7,211,734

$

6,974,953

$

7,013,811

Earning assets6,920,008

6,852,357

6,546,299

6,340,132

6,345,655

Loans5,348,400

5,459,683

5,491,240

5,470,548

5,457,238

Allowance for loan losses71,367

74,754

82,079

88,917

88,555

Deposits6,291,459

6,351,919

6,047,841

5,795,757

5,759,843

Stockholders' equity1,027,703

998,186

982,276

959,025

940,968

Stockholders' equity / assets13.53

%

13.26

%

13.62

%

13.75

%

13.42

%

Goodwill317,948

317,948

317,948

317,948

317,948

Average BalancesTotal assets$

7,549,531

$

7,338,886

$

7,089,060

$

6,935,783

$

7,005,783

Earning assets6,806,275

6,611,343

6,363,306

6,211,267

6,247,037

Loans5,495,782

5,629,715

5,609,116

5,555,621

5,389,805

Deposits and interest-bearing liabilities6,454,731

6,275,160

6,044,049

5,901,652

5,963,127

Deposits6,339,673

6,190,292

5,956,550

5,738,006

5,490,986

Stockholders' equity1,006,757

972,653

946,223

927,506

932,793

Stockholders' equity / assets13.34

%

13.25

%

13.35

%

13.37

%

13.31

%

Per Common Share DataNet Income (Loss):Basic$

0.84

$

1.10

$

0.83

$

0.69

$

0.78

Diluted0.84

1.10

0.82

0.69

0.78

Core diluted (3)0.84

1.10

0.87

0.77

0.82

Dividends Paid0.26

0.24

0.22

0.22

0.22

Market Value:High$

33.97

$

35.90

$

23.49

$

21.24

$

20.11

Low27.76

22.23

14.90

14.74

12.95

Close28.41

33.26

23.00

15.58

17.67

Common Book Value27.64

26.78

26.34

25.71

25.23

Shares outstanding, end of period (000s)37,178

37,275

37,291

37,297

37,296

Performance Ratios (annualized)Tax-equivalent net interest margin (1)3.34

%

3.43

%

3.47

%

3.47

%

3.51

%

Return on average assets1.67

%

2.27

%

1.73

%

1.49

%

1.67

%

Core return on average assets (3)1.67

%

2.27

%

1.83

%

1.64

%

1.76

%

Return on average equity12.50

%

17.09

%

12.97

%

11.12

%

12.53

%

Core return on average equity (3)12.50

%

17.09

%

13.70

%

12.26

%

13.24

%

Return on average tangible equity19.05

%

26.60

%

20.37

%

17.71

%

20.13

%

Core return on average tangible equity (3)19.05

%

26.60

%

21.51

%

19.73

%

21.28

%

Efficiency ratio (2)52.02

%

47.96

%

55.97

%

56.54

%

48.96

%

Core efficiency ratio (3)52.02

%

47.96

%

53.00

%

49.90

%

46.26

%

Effective tax rate20.96

%

19.53

%

21.08

%

19.61

%

20.09

%

Common dividend payout ratio (core)30.95

%

21.82

%

25.29

%

28.57

%

26.83

%

PremierFinancial Corp.SelectedQuarterlyInformation (dollars inthousands, 2nd Qtr 2021 1st Qtr 2021 4th Qtr 2020 3rd Qtr 2020 2nd Qtr 2020except per sharedata)Summary ofOperationsTax-equivalent $ 61,134 $ 61,609 $ 61,067 $ 60,418 $ 62,705 interest income(1)Interest expense 4,245 4,859 5,849 6,888 8,145

Tax-equivalent 56,889 56,750 55,218 53,530 54,560 net interestincome (1)Provision (3,919 ) (6,963 ) (6,764 ) 2,794 2,975 (benefit) forcredit lossesCore provision(benefit) for (3,919 ) (6,963 ) (6,764 ) 2,794 2,975 credit losses(3)Investment 661 2,126 76 1,480 (2 )securities gains(losses)Non-interestincome 16,884 24,149 18,594 23,520 23,017 (excludingsecurities gains/losses)Non-interest 38,375 38,803 41,313 43,563 37,984 expenseCore 38,375 38,803 39,123 38,445 35,885 non-interestexpense (3)Income tax 8,323 9,952 8,240 6,259 7,303 expense(benefit)Net income 31,385 40,996 30,848 25,655 29,057 (loss)Core net income 31,385 40,996 32,577 28,587 30,715 (3)Tax equivalent 270 237 251 259 256 adjustment (1)At Period EndTotal assets $ 7,593,720 $ 7,530,462 $ 7,211,734 $ 6,974,953 $ 7,013,811

Earning assets 6,920,008 6,852,357 6,546,299 6,340,132 6,345,655

Loans 5,348,400 5,459,683 5,491,240 5,470,548 5,457,238

Allowance for 71,367 74,754 82,079 88,917 88,555 loan lossesDeposits 6,291,459 6,351,919 6,047,841 5,795,757 5,759,843

Stockholders' 1,027,703 998,186 982,276 959,025 940,968 equityStockholders' 13.53 % 13.26 % 13.62 % 13.75 % 13.42 %equity / assetsGoodwill 317,948 317,948 317,948 317,948 317,948

Average BalancesTotal assets $ 7,549,531 $ 7,338,886 $ 7,089,060 $ 6,935,783 $ 7,005,783

Earning assets 6,806,275 6,611,343 6,363,306 6,211,267 6,247,037

Loans 5,495,782 5,629,715 5,609,116 5,555,621 5,389,805

Deposits and 6,454,731 6,275,160 6,044,049 5,901,652 5,963,127 interest-bearingliabilitiesDeposits 6,339,673 6,190,292 5,956,550 5,738,006 5,490,986

Stockholders' 1,006,757 972,653 946,223 927,506 932,793 equityStockholders' 13.34 % 13.25 % 13.35 % 13.37 % 13.31 %equity / assetsPer Common ShareDataNet Income(Loss):Basic $ 0.84 $ 1.10 $ 0.83 $ 0.69 $ 0.78

Diluted 0.84 1.10 0.82 0.69 0.78

Core diluted (3) 0.84 1.10 0.87 0.77 0.82

Dividends Paid 0.26 0.24 0.22 0.22 0.22

Market Value:High $ 33.97 $ 35.90 $ 23.49 $ 21.24 $ 20.11

Low 27.76 22.23 14.90 14.74 12.95

Close 28.41 33.26 23.00 15.58 17.67

Common Book 27.64 26.78 26.34 25.71 25.23 ValueShares 37,178 37,275 37,291 37,297 37,296 outstanding, endof period (000s)PerformanceRatios(annualized)Tax-equivalent 3.34 % 3.43 % 3.47 % 3.47 % 3.51 %net interestmargin (1)Return on 1.67 % 2.27 % 1.73 % 1.49 % 1.67 %average assetsCore return on 1.67 % 2.27 % 1.83 % 1.64 % 1.76 %average assets(3)Return on 12.50 % 17.09 % 12.97 % 11.12 % 12.53 %average equityCore return on 12.50 % 17.09 % 13.70 % 12.26 % 13.24 %average equity(3)Return on 19.05 % 26.60 % 20.37 % 17.71 % 20.13 %average tangibleequityCore return on 19.05 % 26.60 % 21.51 % 19.73 % 21.28 %average tangibleequity (3)Efficiency ratio 52.02 % 47.96 % 55.97 % 56.54 % 48.96 %(2)Core efficiency 52.02 % 47.96 % 53.00 % 49.90 % 46.26 %ratio (3)Effective tax 20.96 % 19.53 % 21.08 % 19.61 % 20.09 %rateCommon dividend 30.95 % 21.82 % 25.29 % 28.57 % 26.83 %payout ratio(core)(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.(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.Premier Financial Corp.Selected Quarterly Information(dollars in thousands, except per share data)2nd Qtr 2021

1st Qtr 2021

4th Qtr 2020

3rd Qtr 2020

2nd Qtr 2020

Loan Portfolio CompositionOne to four family residential real estate$

1,138,433

$

1,168,559

$

1,201,051

$

1,194,940

$

1,226,106

Construction830,822

749,190

667,649

580,060

509,548

Commercial real estate2,405,653

2,402,067

2,383,001

2,328,944

2,266,189

Commercial1,051,972

1,172,910

1,202,353

1,263,565

1,244,549

Consumer finance118,526

117,539

120,729

128,995

146,139

Home equity and improvement261,842

257,764

272,701

281,010

290,459

Total loans5,807,248

5,868,029

5,847,484

5,777,514

5,682,990

Less:Undisbursed loan funds458,156

405,983

355,065

300,174

221,137

Deferred loan origination fees692

2,363

1,179

6,792

4,615

Allowance for credit losses - loans71,367

74,754

82,079

88,917

88,555

Net Loans$

5,277,033

$

5,384,929

$

5,409,161

$

5,381,631

$

5,368,683

Allowance for credit losses - loansBeginning allowance$

74,754

$

82,079

$

88,917

$

88,555

$

85,859

CECL adoption-

-

-

-

-

Acquisition related allowance/provision (non PCD)-

-

-

-

-

Acquisition related allowance/goodwill (PCD)-

-

-

-

-

Provision (benefit) for credit losses - loans(3,631

)

(7,514

)

(6,158

)

3,658

1,868

Net recoveries (charge-offs)244

189

(680

)

(3,296

)

828

Ending allowance$

71,367

$

74,754

$

82,079

$

88,917

$

88,555

Credit QualityTotal non-performing loans (1)$

41,296

$

49,298

$

51,983

$

48,360

$

39,470

Real estate owned (REO)45

53

343

521

573

Total non-performing assets (2)$

41,341

$

49,351

$

52,326

$

48,881

$

40,043

Net charge-offs (recoveries)(244

)

(189

)

680

3,296

(828

)

Restructured loans, accruing (3)5,939

6,068

7,173

8,499

7,916

Allowance for credit losses - loans / loans1.33

%

1.37

%

1.49

%

1.63

%

1.62

%

Allowance for credit losses - loans / non-performing assets172.63

%

151.47

%

156.86

%

182.05

%

221.15

%

Allowance for credit losses - loans / non-performing loans172.82

%

151.64

%

157.90

%

184.01

%

224.36

%

Non-performing assets / loans plus REO0.77

%

0.90

%

0.95

%

0.89

%

0.73

%

Non-performing assets / total assets0.54

%

0.66

%

0.73

%

0.70

%

0.57

%

Net charge-offs / average loans (annualized)-0.02

%

-0.01

%

0.05

%

0.24

%

-0.06

%

Deposit BalancesNon-interest-bearing demand deposits$

1,649,664

$

1,728,895

$

1,597,262

$

1,436,807

$

1,454,842

Interest-bearing demand deposits and money market2,890,769

2,806,271

2,627,669

2,511,263

2,361,486

Savings deposits777,862

761,899

700,480

674,354

671,650

Retail time deposits less than $250,000720,317

842,624

912,006

975,658

1,078,758

Retail time deposits greater than $250,000252,847

212,230

210,424

197,675

193,107

Total deposits$

6,291,459

$

6,351,919

$

6,047,841

$

5,795,757

$

5,759,843

Premier FinancialCorp.Selected QuarterlyInformation (dollars in 2nd Qtr 2021 1st Qtr 2021 4th Qtr 2020 3rd Qtr 2020 2nd Qtr 2020thousands, exceptper share data)Loan PortfolioCompositionOne to four family $ 1,138,433 $ 1,168,559 $ 1,201,051 $ 1,194,940 $ 1,226,106 residential realestateConstruction 830,822 749,190 667,649 580,060 509,548

Commercial real 2,405,653 2,402,067 2,383,001 2,328,944 2,266,189 estateCommercial 1,051,972 1,172,910 1,202,353 1,263,565 1,244,549

Consumer finance 118,526 117,539 120,729 128,995 146,139

Home equity and 261,842 257,764 272,701 281,010 290,459 improvementTotal loans 5,807,248 5,868,029 5,847,484 5,777,514 5,682,990

Less:Undisbursed loan 458,156 405,983 355,065 300,174 221,137 fundsDeferred loan 692 2,363 1,179 6,792 4,615 origination feesAllowance for credit 71,367 74,754 82,079 88,917 88,555 losses - loansNet Loans $ 5,277,033 $ 5,384,929 $ 5,409,161 $ 5,381,631 $ 5,368,683

Allowance for creditlosses - loansBeginning allowance $ 74,754 $ 82,079 $ 88,917 $ 88,555 $ 85,859

CECL adoption - - - - -

Acquisition related - - - - - allowance/provision(non PCD)Acquisition related - - - - - allowance/goodwill(PCD)Provision (benefit) (3,631 ) (7,514 ) (6,158 ) 3,658 1,868 for credit losses -loansNet recoveries 244 189 (680 ) (3,296 ) 828 (charge-offs)Ending allowance $ 71,367 $ 74,754 $ 82,079 $ 88,917 $ 88,555

Credit QualityTotal non-performing $ 41,296 $ 49,298 $ 51,983 $ 48,360 $ 39,470 loans (1)Real estate owned 45 53 343 521 573 (REO)Total non-performing $ 41,341 $ 49,351 $ 52,326 $ 48,881 $ 40,043 assets (2)Net charge-offs (244 ) (189 ) 680 3,296 (828 )(recoveries) Restructured loans, 5,939 6,068 7,173 8,499 7,916 accruing (3) Allowance for credit 1.33 % 1.37 % 1.49 % 1.63 % 1.62 %losses - loans /loansAllowance for creditlosses - loans / 172.63 % 151.47 % 156.86 % 182.05 % 221.15 %non-performingassetsAllowance for credit 172.82 % 151.64 % 157.90 % 184.01 % 224.36 %losses - loans /non-performing loansNon-performing 0.77 % 0.90 % 0.95 % 0.89 % 0.73 %assets / loans plusREONon-performing 0.54 % 0.66 % 0.73 % 0.70 % 0.57 %assets / totalassetsNet charge-offs / -0.02 % -0.01 % 0.05 % 0.24 % -0.06 %average loans(annualized) Deposit BalancesNon-interest-bearing $ 1,649,664 $ 1,728,895 $ 1,597,262 $ 1,436,807 $ 1,454,842 demand depositsInterest-bearing 2,890,769 2,806,271 2,627,669 2,511,263 2,361,486 demand deposits andmoney marketSavings deposits 777,862 761,899 700,480 674,354 671,650

Retail time deposits 720,317 842,624 912,006 975,658 1,078,758 less than $250,000Retail time deposits 252,847 212,230 210,424 197,675 193,107 greater than$250,000Total deposits $ 6,291,459 $ 6,351,919 $ 6,047,841 $ 5,795,757 $ 5,759,843

(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% ofTotalJune 30, 2021One to four family residential real estate$ 1,138,433

$ 1,122,060

$ 5,757

0.5%

$ 10,616

0.9%

Construction830,822

830,242

580

0.1%

-

0.0%

Commercial real estate2,405,653

2,388,082

53

0.0%

17,518

0.7%

Commercial1,051,972

1,044,265

-

0.0%

7,707

0.7%

Consumer finance118,526

115,169

1,530

1.3%

1,827

1.5%

Home equity and improvement261,842

256,259

1,955

0.7%

3,628

1.4%

Total loans$ 5,807,248

$ 5,756,077

$ 9,875

0.2%

$ 41,296

0.7%

March 31, 2021One to four family residential real estate$ 1,168,559

$ 1,150,194

$ 5,622

0.5%

$ 12,743

1.1%

Construction749,190

748,362

584

0.1%

244

0.0%

Commercial real estate2,402,067

2,379,138

222

0.0%

22,707

0.9%

Commercial1,172,910

1,164,587

298

0.0%

8,025

0.7%

Consumer finance117,539

114,214

1,424

1.2%

1,901

1.6%

Home equity and improvement257,764

252,732

1,354

0.5%

3,678

1.4%

Total loans$ 5,868,029

$ 5,809,227

$ 9,504

0.2%

$ 49,298

0.8%

June 30, 2020One to four family residential real estate$ 1,226,106

$ 1,213,482

$ 6,056

0.5%

$ 6,568

0.5%

Construction509,548

509,548

-

0.0%

-

0.0%

Commercial real estate2,266,189

2,244,412

1,040

0.0%

20,737

0.9%

Commercial1,244,549

1,233,703

680

0.1%

10,166

0.8%

Consumer finance146,139

144,555

988

0.7%

596

0.4%

Home equity and improvement290,459

285,858

2,237

0.8%

2,364

0.8%

Total loans$ 5,682,990

$ 5,631,558

$ 11,001

0.2%

$ 40,431

0.7%

Loan Risk Ratings Information(dollars in thousands)Total BalancePass RatedSpecial Mention%of TotalClassified%of TotalJune 30, 2021One to four family residential real estate$ 1,125,097

$ 1,114,219

$ 1,117

0.1%

$ 9,761

0.9%

Construction830,822

815,429

15,393

1.9%

-

0.0%

Commercial real estate2,393,591

2,217,858

132,099

5.5%

43,634

1.8%

Commercial1,038,059

991,021

24,898

2.4%

22,140

2.1%

Consumer finance117,764

116,137

-

0.0%

1,627

1.4%

Home equity and improvement257,618

255,497

-

0.0%

2,121

0.8%

PCD loans44,297

21,328

905

2.0%

22,064

49.8%

Total loans$ 5,807,248

$ 5,531,489

$ 174,412

3.0%

$ 101,347

1.7%

March 31, 2021One to four family residential real estate$ 1,154,141

$ 1,145,356

$ 1,173

0.1%

$ 7,612

0.7%

Construction749,190

727,821

21,126

2.8%

243

0.0%

Commercial real estate2,380,688

2,216,699

115,758

4.9%

48,231

2.0%

Commercial1,156,948

1,108,381

25,400

2.2%

23,167

2.0%

Consumer finance116,723

115,044

-

0.0%

1,679

1.4%

Home equity and improvement253,049

250,944

-

0.0%

2,105

0.8%

PCD loans57,290

23,956

1,748

3.1%

31,586

55.1%

Total loans$ 5,868,029

$ 5,588,201

$ 165,205

2.8%

$ 114,623

2.0%

June 30, 2020One to four family residential real estate$ 1,212,490

$ 1,206,062

$ 304

0.0%

$ 6,124

0.5%

Construction287,239

287,174

65

0.0%

-

0.0%

Commercial real estate2,231,602

2,191,433

21,436

1.0%

18,733

0.8%

Commercial1,223,580

1,193,020

23,979

2.0%

6,581

0.5%

Consumer finance136,765

136,449

-

0.0%

316

0.2%

Home equity and improvement284,923

284,188

-

0.0%

735

0.3%

PCD loans80,639

21,817

13,985

17.3%

44,837

55.6%

Total loans$ 5,457,238

$ 5,320,143

$ 59,769

1.1%

$ 77,326

1.4%

Premier Financial Corp. Loan DelinquencyInformation Total 30 to 89 % of Non % of(dollars in thousands) Balance Current days Total Accrual Total past due Loans June 30, 2021One to four family $ $ $ 5,757 0.5% $ 10,616 0.9%residential real estate 1,138,433 1,122,060

Construction 830,822 830,242 580 0.1% - 0.0%

Commercial real estate 2,405,653 2,388,082 53 0.0% 17,518 0.7%

Commercial 1,051,972 1,044,265 - 0.0% 7,707 0.7%

Consumer finance 118,526 115,169 1,530 1.3% 1,827 1.5%

Home equity and 261,842 256,259 1,955 0.7% 3,628 1.4%improvement $ $ $ 9,875 0.2% $ 41,296 0.7%Total loans 5,807,248 5,756,077

March 31, 2021One to four family $ $ $ 5,622 0.5% $ 12,743 1.1%residential real estate 1,168,559 1,150,194

Construction 749,190 748,362 584 0.1% 244 0.0%

Commercial real estate 2,402,067 2,379,138 222 0.0% 22,707 0.9%

Commercial 1,172,910 1,164,587 298 0.0% 8,025 0.7%

Consumer finance 117,539 114,214 1,424 1.2% 1,901 1.6%

Home equity and 257,764 252,732 1,354 0.5% 3,678 1.4%improvement $ $ $ 9,504 0.2% $ 49,298 0.8%Total loans 5,868,029 5,809,227

June 30, 2020One to four family $ $ $ 6,056 0.5% $ 6,568 0.5%residential real estate 1,226,106 1,213,482

Construction 509,548 509,548 - 0.0% - 0.0%

Commercial real estate 2,266,189 2,244,412 1,040 0.0% 20,737 0.9%

Commercial 1,244,549 1,233,703 680 0.1% 10,166 0.8%

Consumer finance 146,139 144,555 988 0.7% 596 0.4%

Home equity and 290,459 285,858 2,237 0.8% 2,364 0.8%improvement $ $ $ 11,001 0.2% $ 40,431 0.7%Total loans 5,682,990 5,631,558

Loan Risk RatingsInformation Total Pass Special % %(dollars in thousands) Balance Rated Mention of Classified of Total Total June 30, 2021One to four family $ $ $ 1,117 0.1% $ 9,761 0.9%residential real estate 1,125,097 1,114,219

Construction 830,822 815,429 15,393 1.9% - 0.0%

Commercial real estate 2,393,591 2,217,858 132,099 5.5% 43,634 1.8%

Commercial 1,038,059 991,021 24,898 2.4% 22,140 2.1%

Consumer finance 117,764 116,137 - 0.0% 1,627 1.4%

Home equity and 257,618 255,497 - 0.0% 2,121 0.8%improvementPCD loans 44,297 21,328 905 2.0% 22,064 49.8%

$ $ $ 3.0% $ 101,347 1.7%Total loans 5,807,248 5,531,489 174,412

March 31, 2021One to four family $ $ $ 1,173 0.1% $ 7,612 0.7%residential real estate 1,154,141 1,145,356

Construction 749,190 727,821 21,126 2.8% 243 0.0%

Commercial real estate 2,380,688 2,216,699 115,758 4.9% 48,231 2.0%

Commercial 1,156,948 1,108,381 25,400 2.2% 23,167 2.0%

Consumer finance 116,723 115,044 - 0.0% 1,679 1.4%

Home equity and 253,049 250,944 - 0.0% 2,105 0.8%improvementPCD loans 57,290 23,956 1,748 3.1% 31,586 55.1%

$ $ $ 2.8% $ 114,623 2.0%Total loans 5,868,029 5,588,201 165,205

June 30, 2020One to four family $ $ $ 304 0.0% $ 6,124 0.5%residential real estate 1,212,490 1,206,062

Construction 287,239 287,174 65 0.0% - 0.0%

Commercial real estate 2,231,602 2,191,433 21,436 1.0% 18,733 0.8%

Commercial 1,223,580 1,193,020 23,979 2.0% 6,581 0.5%

Consumer finance 136,765 136,449 - 0.0% 316 0.2%

Home equity and 284,923 284,188 - 0.0% 735 0.3%improvementPCD loans 80,639 21,817 13,985 17.3% 44,837 55.6%

$ $ $ 59,769 1.1% $ 77,326 1.4%Total loans 5,457,238 5,320,143

Premier Financial Corp.Non-GAAP ReconciliationsSix months ended

(In thousands, except per share and ratio data)6/30/21

6/30/20

2nd Qtr 2021

1st Qtr 2021

4th Qtr 2020

3rd Qtr 2020

2nd Qtr 2020

Acquisition related charges (pre-tax)$

-

$

13,585

$

-

$

-

$

2,190

$

3,711

$

2,099

Less: Tax benefit of acquisition related charges-

2,475

-

-

460

779

441

Acquisition related charges (after-tax)$

-

$

11,110

$

-

$

-

$

1,730

$

2,932

$

1,658

Total non-interest expenses$

77,178

$

80,293

$

38,375

$

38,803

$

41,313

$

43,563

$

37,984

Less: Acquisition related charges (pre-tax)-

13,585

-

-

2,190

3,711

2,099

Less: FHLB prepayment charges(1)-

-

-

-

-

1,407

-

Core non-interest expenses$

77,178

$

66,708

$

38,375

$

38,803

$

39,123

$

38,445

$

35,885

Acquisition related provision (pre-tax)$

-

$

25,949

$

-

$

-

$

-

$

-

$

-

Less: Tax benefit of acquisition related provision-

5,449

-

-

-

-

-

Acquisition related provision (after-tax)$

-

$

20,500

$

-

$

-

$

-

$

-

$

-

Provision (benefit) for credit losses$

(10,882

)

$

48,220

$

(3,919

)

$

(6,963

)

$

(6,764

)

$

2,794

$

2,975

Less: Acquisition related provision (pre-tax)-

25,949

-

-

-

-

-

Core provision (benefit) for credit losses$

(10,882

)

$

22,271

$

(3,919

)

$

(6,963

)

$

(6,764

)

$

2,794

$

2,975

Non-interest income$

43,820

$

37,014

$

17,545

$

26,275

$

18,669

$

25,000

$

23,015

Less: Securities gains (losses)2,787

(2

)

661

2,126

76

1,480

(2

)

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

41,033

$

37,016

$

16,884

$

24,149

$

18,593

$

23,520

$

23,017

Tax-equivalent net interest income$

113,638

$

100,274

$

56,889

$

56,750

$

55,218

$

53,530

$

54,560

Non-interest income (excluding securities gains/losses)41,033

37,016

16,884

24,149

18,593

23,520

23,017

Total revenues154,671

137,290

73,773

80,899

73,811

77,050

77,577

Core non-interest expenses$

77,178

$

66,708

$

38,375

$

38,803

$

39,123

$

38,445

$

35,885

Core efficiency ratio49.90

%

48.59

%

52.02

%

47.96

%

53.00

%

49.90

%

46.26

%

Income (loss) before income taxes$

90,655

$

8,268

$

39,708

$

50,948

$

39,087

$

31,914

$

36,360

Add: Provision (benefit) for credit losses(10,882

)

48,220

(3,919

)

(6,963

)

(6,764

)

2,794

2,975

Pre-tax pre-provision income79,773

56,488

35,789

43,985

32,323

34,708

39,335

Add: Acquisition related charges (pre-tax)-

13,585

-

-

2,190

3,711

2,099

Core pre-tax pre-provision income$

79,773

$

70,073

$

35,789

$

43,985

$

34,513

$

38,419

$

41,434

Average total assets$

7,444,791

$

6,185,668

$

7,549,531

$

7,338,886

$

7,089,060

$

6,935,783

$

7,005,783

Core pre-tax pre-provision return on average assets2.16

%

2.28

%

1.90

%

2.43

%

1.94

%

2.20

%

2.38

%

Net income (loss)$

72,381

$

6,575

$

31,385

$

40,996

$

30,847

$

25,655

$

29,057

Add: Acquisition related provision (after-tax)-

20,500

-

-

-

-

-

Add: Acquisition related charges (after-tax)-

11,110

-

-

1,730

2,932

1,658

Core net income$

72,381

$

38,185

$

31,385

$

40,996

$

32,577

$

28,587

$

30,715

Diluted shares - Reported37,351

34,526

37,358

37,357

37,350

37,334

37,324

Add: Dilutive shares for core net income-

-

-

-

-

-

-

Diluted shares - Core37,351

34,526

37,358

37,357

37,350

37,334

37,324

Core diluted EPS$

1.94

$

1.11

$

0.84

$

1.10

$

0.87

$

0.77

$

0.82

Average total assets$

7,444,791

$

6,185,668

$

7,549,531

$

7,338,886

$

7,089,060

$

6,935,783

$

7,005,783

Core return on average assets1.96

%

1.24

%

1.67

%

2.27

%

1.83

%

1.64

%

1.76

%

Average total equity$

989,800

$

858,894

$

1,006,757

$

972,653

$

946,223

$

927,506

$

932,793

Core return on average equity14.75

%

8.94

%

12.50

%

17.09

%

13.70

%

12.26

%

13.24

%

Average total tangible equity$

642,990

$

548,430

$

660,785

$

624,996

$

602,495

$

576,457

$

580,449

Core return on average tangible equity22.70

%

14.00

%

19.05

%

26.60

%

21.51

%

19.73

%

21.28

%

PremierFinancial Corp.Non-GAAPReconciliations Six months ended

(In thousands,except per 6/30/21 6/30/20 2nd Qtr 2021 1st Qtr 2021 4th Qtr 2020 3rd Qtr 2020 2nd Qtr 2020share and ratiodata)Acquisition $ - $ 13,585 $ - $ - $ 2,190 $ 3,711 $ 2,099 related charges(pre-tax)Less: Taxbenefit of - 2,475 - - 460 779 441 acquisitionrelated chargesAcquisition $ - $ 11,110 $ - $ - $ 1,730 $ 2,932 $ 1,658 related charges(after-tax) Total $ 77,178 $ 80,293 $ 38,375 $ 38,803 $ 41,313 $ 43,563 $ 37,984 non-interestexpensesLess:Acquisition - 13,585 - - 2,190 3,711 2,099 related charges(pre-tax)Less: FHLB - - - - - 1,407 - prepaymentcharges^(1)Core $ 77,178 $ 66,708 $ 38,375 $ 38,803 $ 39,123 $ 38,445 $ 35,885 non-interestexpenses Acquisitionrelated $ - $ 25,949 $ - $ - $ - $ - $ - provision(pre-tax)Less: Taxbenefit of - 5,449 - - - - - acquisitionrelatedprovisionAcquisitionrelated $ - $ 20,500 $ - $ - $ - $ - $ - provision(after-tax) Provision $ (10,882 ) $ 48,220 $ (3,919 ) $ (6,963 ) $ (6,764 ) $ 2,794 $ 2,975 (benefit) forcredit lossesLess:Acquisition - 25,949 - - - - - relatedprovision(pre-tax)Core provision $ (10,882 ) $ 22,271 $ (3,919 ) $ (6,963 ) $ (6,764 ) $ 2,794 $ 2,975 (benefit) forcredit losses Non-interest $ 43,820 $ 37,014 $ 17,545 $ 26,275 $ 18,669 $ 25,000 $ 23,015 incomeLess: 2,787 (2 ) 661 2,126 76 1,480 (2 )Securitiesgains (losses)Non-interestincome $ 41,033 $ 37,016 $ 16,884 $ 24,149 $ 18,593 $ 23,520 $ 23,017 (excludingsecuritiesgains/losses) Tax-equivalent $ 113,638 $ 100,274 $ 56,889 $ 56,750 $ 55,218 $ 53,530 $ 54,560 net interestincomeNon-interestincome 41,033 37,016 16,884 24,149 18,593 23,520 23,017 (excludingsecuritiesgains/losses)Total revenues 154,671 137,290 73,773 80,899 73,811 77,050 77,577

Core $ 77,178 $ 66,708 $ 38,375 $ 38,803 $ 39,123 $ 38,445 $ 35,885 non-interestexpensesCore efficiency 49.90 % 48.59 % 52.02 % 47.96 % 53.00 % 49.90 % 46.26 %ratio Income (loss) $ 90,655 $ 8,268 $ 39,708 $ 50,948 $ 39,087 $ 31,914 $ 36,360 before incometaxesAdd: Provision (10,882 ) 48,220 (3,919 ) (6,963 ) (6,764 ) 2,794 2,975 (benefit) forcredit lossesPre-tax 79,773 56,488 35,789 43,985 32,323 34,708 39,335 pre-provisionincomeAdd:Acquisition - 13,585 - - 2,190 3,711 2,099 related charges(pre-tax)Core pre-tax $ 79,773 $ 70,073 $ 35,789 $ 43,985 $ 34,513 $ 38,419 $ 41,434 pre-provisionincomeAverage total $ 7,444,791 $ 6,185,668 $ 7,549,531 $ 7,338,886 $ 7,089,060 $ 6,935,783 $ 7,005,783 assetsCore pre-taxpre-provision 2.16 % 2.28 % 1.90 % 2.43 % 1.94 % 2.20 % 2.38 %return onaverage assets Net income $ 72,381 $ 6,575 $ 31,385 $ 40,996 $ 30,847 $ 25,655 $ 29,057 (loss)Add:Acquisition - 20,500 - - - - - relatedprovision(after-tax)Add:Acquisition - 11,110 - - 1,730 2,932 1,658 related charges(after-tax)Core net income $ 72,381 $ 38,185 $ 31,385 $ 40,996 $ 32,577 $ 28,587 $ 30,715

Diluted shares 37,351 34,526 37,358 37,357 37,350 37,334 37,324 - ReportedAdd: Dilutive - - - - - - - shares for corenet incomeDiluted shares 37,351 34,526 37,358 37,357 37,350 37,334 37,324 - CoreCore diluted $ 1.94 $ 1.11 $ 0.84 $ 1.10 $ 0.87 $ 0.77 $ 0.82 EPS Average total $ 7,444,791 $ 6,185,668 $ 7,549,531 $ 7,338,886 $ 7,089,060 $ 6,935,783 $ 7,005,783 assetsCore return on 1.96 % 1.24 % 1.67 % 2.27 % 1.83 % 1.64 % 1.76 %average assets Average total $ 989,800 $ 858,894 $ 1,006,757 $ 972,653 $ 946,223 $ 927,506 $ 932,793 equityCore return on 14.75 % 8.94 % 12.50 % 17.09 % 13.70 % 12.26 % 13.24 %average equity Average total $ 642,990 $ 548,430 $ 660,785 $ 624,996 $ 602,495 $ 576,457 $ 580,449 tangible equityCore return on 22.70 % 14.00 % 19.05 % 26.60 % 21.51 % 19.73 % 21.28 %averagetangible equityNote: Year-to-date results include six months of operations from UCFC compared to five for comparable period in 2020.(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/20210729006149/en/

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