Business Wire | Oct 28, 2021 04:16PM EDT

Premier Financial Corp. Announces Solid Third Quarter Results Including Core Loan Growth and Net Interest Margin Expansion

Oct. 28, 2021

DEFIANCE, Ohio--(BUSINESS WIRE)--Oct. 28, 2021--Premier Financial Corp. (Nasdaq: PFC) ("Premier" or the "Company") today announced 2021 third quarter results. Net income for the third quarter of 2021 was $28.4 million, or $0.76 per diluted common share, compared to $25.7 million, or $0.69 per diluted common share, for the third quarter of 2020. The prior year's results include the impact of $3.7 million of acquisition-related charges for the three months ended September 30, 2020, which had an after-tax cost of $2.9 million or $0.08 per diluted common share. Net income for the nine months ended September 30, 2021, was $100.7 million, or $2.70 per diluted common share, compared to $32.2 million, or $0.91 per diluted common share, for the nine months ended September 30, 2020. The nine-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 $51.0 million that included $25.9 million related to acquisition accounting for an after-tax cost of $20.5 million, or $0.58 per diluted common share. The nine months of 2021 included a provision recovery of $9.1 million, which had an after-tax benefit of $7.2 million, or $0.19 per diluted common share, and no acquisition impact. Additionally, the prior year's nine-month results include the impact of $17.3 million of acquisition-related charges, which had an after-tax cost of $14.0 million, or $0.39 per diluted common share. Excluding the impact of the acquisition-related provision and charges, earnings for the first nine months of 2020 were $66.8 million, or $1.88 per diluted common share.

"We are very pleased to report our second consecutive quarter of strong loan growth at 5.1% annualized," said Gary Small, President and CEO of Premier. "Core commercial, residential mortgage, and consumer each contributed over 4.4% for the period. Commercial and consumer new business pipelines are at their highest level for the year with businesses expressing labor constraints as more of a concern than supply chain challenges at this point. Household deposits remain elevated and consumer loan delinquency continues to track at all-time lows. Clients are well positioned as we head into the upcoming holiday season."

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 during the year ended December 31, 2020. Total gross fees for these loans equaled $14.8 million. To date, Premier Bank has recognized $14.7 million as loan interest income, including $0.9 million and $8.5 million during the three and nine months ended September 30, 2021, respectively. Additionally, a total of $433.3 million in loans have been extinguished to date, including $83.7 million and $376.9 million during the three and nine months ended September 30, 2021, respectively.

Beginning in January 2021, Premier Bank participated in the second round of PPP lending and made 2,231 loans for a total of $193.6 million during the nine months ended September 30, 2021. Total gross fees for these loans were $7.8 million and Premier Bank has recognized $2.7 million and $3.2 million in loan interest income during the three and nine months ended September 30, 2021, respectively. Additionally, a total of $59.6 million in loans have been extinguished to date, all during the three months ended September 30, 2021. Total PPP loans were $143.9 million at September 30, 2021.

Net interest income up compared to third quarter of 2020

Net interest income of $57.0 million in the third quarter of 2021 was up from $53.3 million in the third quarter of 2020. The increase over the prior year's third quarter was attributable to growth in interest-earning assets, PPP fees and a 23 basis point decrease in average costs of funds. Net interest margin was 3.38% for the third quarter of 2021, up from 3.34% in the second quarter of 2021, but down from 3.45% in the third quarter of 2020. Yield on interest earning assets increased to 3.61% in the third quarter of 2021, up 2 basis points from 3.59% in the second quarter of 2021. The improvement from second quarter to third quarter was primarily due to $64.4 million of non-PPP loan growth (5.1% annualized). Total cost of funds decreased 2 basis points in the third quarter of 2021 to 0.24% from the second quarter of 2021, while the total cost of interest-bearing liabilities decreased 4 basis points to 0.32%. The 2021 third quarter results include the impact of acquisition marks and related accretion for the UCFC acquisition. Interest income includes $0.6 million of accretion and interest expense includes $0.3 million of accretion, which combined added 5 basis points of net interest margin. The third quarter results also include the impact of PPP loans. Interest income includes $2.9 million on average balances of $219.4 million, which increased net interest margin by 6 basis points. Excluding the impact of acquisition marks and PPP loans, net interest margin would be 3.27% for the third quarter of 2021 compared to 3.20% for the second quarter of 2021 and 3.41% for the third quarter of 2020.

"Net interest margin stabilized during the quarter with 3.27% core margin reflecting a 7 basis point improvement versus second quarter," said Small. "We made progress on all fronts during the quarter with lower cost of funds, lower cost of interest bearing deposits, and higher yields. While some additional improvement in funding costs may contribute to net interest margin growth in the near term, our loan portfolio growth and efficient management of the securities portfolio will drive our net interest income performance longer term."

Non-interest income down from third quarter of 2020

Premier's non-interest income in the third quarter of 2021 was $18.3 million compared with $25.0 million in the third quarter of 2020. Total mortgage banking income decreased to $6.2 million in the third quarter of 2021 from $12.0 million in the third quarter of 2020. Mortgage gains decreased to $5.4 million in the third quarter of 2021 from $13.8 million in the third quarter of 2020 but increased from $2.7 million in the second quarter of 2021. Total mortgage loan production has been consistently strong compared to prior year, while gains have declined primarily due to compressed margins and less favorable marks on the in-process portfolio. The increase from the prior quarter was primarily due to the expected improvement in saleable mix. Mortgage loan servicing revenue of $1.9 million in the third quarter of 2021 was consistent with $1.9 million in the third quarter of 2020. Amortization of mortgage servicing rights decreased to $1.8 million in the third quarter of 2021 from $2.0 million in the third quarter of 2020. Premier also had a positive change in the valuation adjustment for mortgage servicing assets of $0.8 million in the third quarter of 2021 compared with a negative adjustment of $1.7 million in the third quarter of 2020. This item closely follows the trend in USTN-10, which increased 7 basis points during the quarter to 1.52% at September 30, 2021.

For the third quarter of 2021, service fees and other charges were $6.1 million, up 26% from $4.8 million in the third quarter of 2020 primarily due to higher ATM and interchange related fees. This was mostly offset by a combined $1.0 million decrease in wealth management, insurance commissions and other income. Securities gains were $0.3 million in the third quarter of 2021 compared to a gain of $1.5 million in the third quarter of 2020, which included $1.4 million from a transaction completed to offset a $1.4 million FHLB prepayment penalty in other expenses noted below. BOLI income increased $0.1 million from the third quarter of 2020 primarily due to a $20 million premium purchase during the third quarter of 2021.

"Residential mortgage fee income returned to more typical levels in the third quarter and brought our year to date performance in line with our expectations for the year," said Small. "Mortgage origination activity remained strong for the quarter with a better mix of salable production."

Core non-interest expenses up from third quarter of 2020

Total non-interest expense was $39.0 million in the third quarter of 2021, down from $43.6 million in the third quarter of 2020, but up from $38.4 million excluding $3.7 million of acquisition related charges and $1.4 million FHLB prepayment penalty. Compensation and benefits increased to $23.4 million in the third quarter of 2021, compared to $20.2 million in the third quarter of 2020. Occupancy expense was $3.7 million in the third quarter of 2021, down from $4.0 million in the third quarter of 2020. Data processing cost was $3.4 million in the third quarter of 2021, down from $4.3 million in the third quarter of 2020. Amortization of intangibles was $1.5 million in the third quarter of 2021, down from $1.7 million in the third quarter of 2020. Other non-interest expense was $5.2 million in the third quarter of 2021, down from $7.1 million in the third quarter of 2020, or down from $5.7 million excluding $1.4 million of prepayment penalties from the early extinguishment of $30 million of fixed rate FHLB advances that had a weighted average rate of 2.0%.

Credit quality

Non-performing assets totaled $60.1 million, or 0.81% of assets, at September 30, 2021, an increase from $41.3 million at June 30, 2021, and an increase from $48.3 million at September 30, 2020. The increase during the third quarter was primarily due to a single commercial credit relationship. Accruing troubled debt restructured loans were $6.5 million at September 30, 2021, compared with $8.5 million at September 30, 2020. Loan delinquencies increased to $11.2 million, or 0.2% of loans, at September 30, 2021, from $9.9 million at June 30, 2021, but decreased from $20.9 million at September 30, 2020.

The 2021 third quarter results include net loan recoveries of $0.3 million and a total provision expense of $1.8 million compared with net loan charge-offs of $3.3 million and a total provision expense of $2.8 million for the same period in 2020. The allowance for credit losses on loans as a percentage of total loans was 1.39% at September 30, 2021, or 1.43% excluding PPP loans, compared with 1.33% at June 30, 2021, or 1.37% excluding PPP loans, and 1.63%, or 1.77% excluding PPP loans, at September 30, 2020. The continued economic improvement after the 2020 pandemic-related downturn led to the year-over-year decrease in the provision expense and allowance percentages. As of September 30, 2021, Premier Bank had no pandemic-related deferrals, down from one retail loan for $13,000 at June 30, 2021.

"The increase in provision expense and allowance percentages from the prior quarter was primarily due to the establishment of a specific reserve for a single non-performing commercial credit, partially offset by improvements in the remainder of the portfolio," said Paul Nungester, CFO of Premier. "We are comfortable with an all-in reserve coverage level of 1.57% excluding PPP loans and including unamortized purchase accounting marks."

Year to date results

For the nine-month period ended September 30, 2021, net income totaled $100.7 million, or $2.70 per diluted common share, compared to $32.2 million, or $0.91 per diluted common share for the nine months ended September 30, 2020. Results for the 2020 period included eight months of income and expenses from UCFC compared to nine months in 2021. The year-over-year comparison is also substantially impacted by the prior year's provision expense of $49.3 million, which included $25.9 million related to acquisition accounting for an after-tax cost of $20.5 million, or $0.58 per diluted common share. The 2021 period included a provision credit of $9.1 million, which had an after-tax benefit of $7.2 million, or $0.19 per diluted common share, and no acquisition impact. Additionally, the prior year's results include the impact of $17.3 million of acquisition-related charges, which had an after-tax cost of $14.0 million, or $0.39 per diluted common share. Excluding the impact of acquisition-related provision and charges, earnings for the first nine months of 2020 were $66.8 million, or $1.88 per diluted common share.

Net interest income was $170.2 million for the first nine months of 2021 compared with $153.0 million in the first nine months of 2020. Average interest-earning assets increased to $6.7 billion in the first nine months of 2021 compared to $5.8 billion in the first nine months of 2020. Net interest margin for the first nine months of 2021 was 3.39%, down 15 basis points from the 3.54% margin reported in the nine-month period ended September 30, 2020. Results include the impact of acquisition marks and related accretion for the UCFC acquisition. For the first nine months of 2021, interest income includes $3.2 million of accretion and interest expense includes $1.0 million of accretion, which combined added 9 basis points of net interest margin. The results in the first nine months of 2021 also include the impact of PPP loans. Interest income includes $11.9 million on average balances of $343.7 million, which increased net interest margin by 7 basis points. Excluding the impact of acquisition marks and PPP loans, net interest margin was 3.23% for the first nine months of 2021 compared to 3.44% for the first nine months of 2020.

Non-interest income for the first nine months of 2021 was $62.1 million compared to $62.0 million during the same period of 2020. Service fees and other charges were $17.8 million for the first nine months of 2021, up from $15.6 million during the same period of 2020. Mortgage banking income was $18.9 million for the first nine months of 2021, down from $22.8 million during the same period of 2020. Insurance commissions were $12.4 million for the first nine months of 2021 compared with $12.9 million for the same period of 2020. Wealth management income was $4.6 million for the first nine months of 2021, up from $4.4 million during the same period of 2020. Securities gains were $3.0 million for the first nine months of 2021 compared to $1.5 million for the same period in 2020. Approximately $2.2 million of the 2021 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 $3.0 million in the first nine months of 2021, including $0.3 million of claim gains, compared to $2.5 million and no claim gains in the first nine months of 2020. Other non-interest income for the first nine months of 2021 was $2.4 million compared to $2.3 million in 2020.

Non-interest expense was $116.2 million for the first nine months of 2021 compared to $123.9 million, or $105.2 million excluding acquisition-related charges and FHLB prepayment penalties, for the same period of 2020. Compensation and benefits expense was $66.4 million for the first nine months of 2021 compared with $57.3 million during the same period of 2020. Expenses also included net decreases of $1.1 million for occupancy, FDIC insurance premiums, financial institution taxes, data processing and amortization of intangibles and an increase of $1.7 million for other expenses.

Total assets at $7.47 billion

Total assets at September 30, 2021, were $7.47 billion compared to $7.59 billion at June 30, 2021, and $6.97 billion at September 30, 2020. Gross loans receivable (including loans held for sale) were $5.45 billion at September 30, 2021, compared to $5.55 billion at June 30, 2021, and $5.68 billion at September 30, 2020. At September 30, 2021, gross loans receivable decreased $230.5 million from a year ago due to a $299.3 million decrease in PPP loans. Excluding PPP, loans grew $68.8 million organically, or 1.3% from a year ago. Commercial loans excluding PPP increased $88.2 million from September 30, 2020, to 2021, or 2.6%, despite a $23.3 million decrease in lines of credit. Securities at September 30, 2021, were $1.26 billion compared to $1.29 billion at June 30, 2021, and $579.2 million at September 30, 2020. Also, at September 30, 2021, goodwill and other intangible assets totaled $343.6 million compared to $345.1 million at June 30, 2021, and $350.0 million at September 30, 2020, with the decrease attributable to intangibles amortization.

Total deposits at September 30, 2021, were $6.25 billion compared with $6.29 billion at June 30, 2021, and $5.80 billion at September 30, 2020. At September 30, 2021, total deposits grew $452.9 million organically, or 7.8% from a year ago.

Total stockholders' equity was $1.03 billion at September 30, 2021, compared to $1.03 billion at June 30, 2021, and $959.0 million at September 30, 2020. The increase in stockholders' equity from the prior year was primarily due to net earnings. The Company also completed the repurchase of 206,285 common shares for $6.0 million during the third quarter of 2021. At September 30, 2021, 1,628,149 common shares remained available for repurchase under the Company's existing authorization.

Dividend to be paid November 19

The Board of Directors declared a quarterly cash dividend of $0.28 per common share payable November 19, 2021, to shareholders of record at the close of business on November 12, 2021. The dividend represents an annual dividend of 3.44 percent based on the Premier common stock closing price on October 27, 2021. Premier has approximately 36,978,000 common shares outstanding.

Conference call

Premier will host a conference call at 11:00 a.m. ET on Friday, October 29, 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/pfc211029.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, the Form 10-K/A filed September 28, 2021 and any further amendments thereto. 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 September 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. September 30, December 31,

(in thousands) 2021 2020

AssetsCash and cash equivalentsCash and amounts due from depository institutions $ 63,480 $ 79,593

Interest-bearing deposits 51,614 79,673

115,094 159,266

Available-for sale, carried at fair value 1,250,087 736,654

Trading securities, carried at fair value 12,965 1,090

Securities investments 1,263,052 737,744

Loans 5,269,566 5,491,240

Allowance for credit losses - loans (73,217 ) (82,079 )

Loans, net 5,196,349 5,409,161

Loans held for sale 178,490 221,616

Mortgage servicing rights 19,105 13,153

Accrued interest receivable 22,994 25,434

Federal Home Loan Bank stock 11,585 16,026

Bank Owned Life Insurance 166,866 144,784

Office properties and equipment 56,073 58,665

Real estate and other assets held for sale 261 343

Goodwill 317,948 317,948

Core deposit and other intangibles 25,612 30,337

Other assets 94,889 77,257

Total Assets $ 7,468,318 $ 7,211,734

Liabilities and Stockholders' EquityNon-interest-bearing deposits $ 1,618,769 $ 1,597,262

Interest-bearing deposits 4,629,889 4,450,579

Total deposits 6,248,658 6,047,841

Advances from FHLB and PPPLF - -

Notes payable and other interest-bearing 18,812 - liabilitiesSubordinated debentures 84,944 84,860

Advance payments by borrowers for tax and 19,495 21,748 insuranceReserve for credit losses - unfunded commitments 5,838 5,350

Other liabilities 58,702 69,659

Total Liabilities 6,436,449 6,229,458

Stockholders' EquityPreferred stock - -

Common stock, net 306 306

Additional paid-in-capital 690,783 689,390

Accumulated other comprehensive income (loss) 1,609 15,004

Retained earnings 428,518 356,414

Treasury stock, at cost (89,347 ) (78,838 )

Total Stockholders' Equity 1,031,869 982,276

Total Liabilities and Stockholders' Equity $ 7,468,318 $ 7,211,734

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

Nine Months Ended

September 30,

September 30,

(in thousands, except per share amounts)2021

2020

2021

2020

Interest Income:Loans$

55,443

$

57,134

$

168,781

$

167,390

Investment securities5,325

2,848

13,999

8,489

Interest-bearing deposits33

82

142

391

FHLB stock dividends60

95

175

861

Total interest income60,861

60,159

183,097

177,131

Interest Expense:Deposits3,144

6,555

10,867

21,761

FHLB advances and other11

168

23

1,690

Subordinated debentures671

158

2,040

610

Notes Payable-

7

-

32

Total interest expense3,826

6,888

12,930

24,093

Net interest income57,035

53,271

170,167

153,038

Provision (benefit) for credit losses - loans1,594

3,658

(9,549

)

49,312

Provision (benefit) for credit losses - unfunded commitments226

(864

)

488

1,702

Total provision (benefit) for credit losses1,820

2,794

(9,061

)

51,014

Net interest income after provision55,215

50,477

179,228

102,024

Non-interest Income:Service fees and other charges6,067

4,805

17,817

15,601

Mortgage banking income6,175

12,047

18,865

22,763

Gain on sale of non-mortgage loans-

-

-

234

Gain (loss) on sale of available for sale securities233

1,466

2,218

1,464

Gain (loss) on trading securities20

14

822

14

Insurance commissions3,461

3,715

12,401

12,875

Wealth management income1,321

1,458

4,644

4,351

Income from Bank Owned Life Insurance947

841

2,975

2,460

Other non-interest income90

654

2,391

2,251

Total Non-interest Income18,314

25,000

62,133

62,013

Non-interest Expense:Compensation and benefits23,355

20,172

66,399

57,331

Occupancy3,693

3,989

11,642

11,848

FDIC insurance premium695

1,469

2,115

2,372

Financial institutions tax1,187

1,116

3,553

3,066

Data processing3,387

4,289

10,103

11,135

Amortization of intangibles1,528

1,726

4,725

4,781

Acquisition related charges-

3,711

-

17,295

Other non-interest expense5,200

7,091

17,686

16,028

Total Non-interest Expense39,045

43,563

116,223

123,856

Income (loss) before income taxes34,484

31,914

125,138

40,181

Income tax expense (benefit)6,124

6,259

24,397

7,951

Net Income (Loss)$

28,360

$

25,655

$

100,741

$

32,230

Earnings (loss) per common share:Basic$

0.76

$

0.69

$

2.70

$

0.91

Diluted$

0.76

$

0.69

$

2.70

$

0.91

Average Shares Outstanding:Basic37,100

37,297

37,226

35,423

Diluted37,185

37,334

37,311

35,482

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

September 30, September 30,

(in thousands, except per 2021 2020 2021 2020share amounts)Interest Income:Loans $ 55,443 $ 57,134 $ 168,781 $ 167,390

Investment securities 5,325 2,848 13,999 8,489

Interest-bearing deposits 33 82 142 391

FHLB stock dividends 60 95 175 861

Total interest income 60,861 60,159 183,097 177,131

Interest Expense:Deposits 3,144 6,555 10,867 21,761

FHLB advances and other 11 168 23 1,690

Subordinated debentures 671 158 2,040 610

Notes Payable - 7 - 32

Total interest expense 3,826 6,888 12,930 24,093

Net interest income 57,035 53,271 170,167 153,038

Provision (benefit) for 1,594 3,658 (9,549 ) 49,312credit losses - loansProvision (benefit) for 226 (864 ) 488 1,702credit losses - unfundedcommitmentsTotal provision (benefit) for 1,820 2,794 (9,061 ) 51,014credit lossesNet interest income after 55,215 50,477 179,228 102,024provisionNon-interest Income:Service fees and other 6,067 4,805 17,817 15,601chargesMortgage banking income 6,175 12,047 18,865 22,763

Gain on sale of non-mortgage - - - 234loansGain (loss) on sale of 233 1,466 2,218 1,464available for sale securitiesGain (loss) on trading 20 14 822 14securitiesInsurance commissions 3,461 3,715 12,401 12,875

Wealth management income 1,321 1,458 4,644 4,351

Income from Bank Owned Life 947 841 2,975 2,460InsuranceOther non-interest income 90 654 2,391 2,251

Total Non-interest Income 18,314 25,000 62,133 62,013

Non-interest Expense:Compensation and benefits 23,355 20,172 66,399 57,331

Occupancy 3,693 3,989 11,642 11,848

FDIC insurance premium 695 1,469 2,115 2,372

Financial institutions tax 1,187 1,116 3,553 3,066

Data processing 3,387 4,289 10,103 11,135

Amortization of intangibles 1,528 1,726 4,725 4,781

Acquisition related charges - 3,711 - 17,295

Other non-interest expense 5,200 7,091 17,686 16,028

Total Non-interest Expense 39,045 43,563 116,223 123,856

Income (loss) before income 34,484 31,914 125,138 40,181taxesIncome tax expense (benefit) 6,124 6,259 24,397 7,951

Net Income (Loss) $ 28,360 $ 25,655 $ 100,741 $ 32,230

Earnings (loss) per commonshare:Basic $ 0.76 $ 0.69 $ 2.70 $ 0.91

Diluted $ 0.76 $ 0.69 $ 2.70 $ 0.91

Average Shares Outstanding:Basic 37,100 37,297 37,226 35,423

Diluted 37,185 37,334 37,311 35,482

Premier Financial Corp.Financial Summary and Comparison (Unaudited)Three Months EndedNine Months EndedSeptember 30,September 30,(dollars in thousands, except per share data)2021

2020

% change

2021

2020

% change

Summary of OperationsTax-equivalent interest income (2)$

61,117

$

60,418

1.2

$

183,860

$

177,898

3.4

Interest expense3,826

6,888

(44.5

)

12,930

24,093

(46.3

)

Tax-equivalent net interest income (2)57,291

53,530

7.0

170,930

153,805

11.1

Provision (benefit) for credit losses1,820

2,794

(34.9

)

(9,061

)

51,014

(117.8

)

Core provision (benefit) for credit losses (4)1,820

2,794

(34.9

)

(9,061

)

25,065

(136.2

)

Investment securities gains (losses)253

1,480

NM

3,040

1,478

NM

Non-interest income (excluding securities gains/losses)18,061

23,520

(23.2

)

59,093

60,535

(2.4

)

Non-interest expense39,045

43,563

(10.4

)

116,223

123,856

(6.2

)

Core non-interest expense (4)39,045

38,445

1.6

116,223

105,154

10.5

Income tax expense (benefit)6,124

6,259

(2.2

)

24,397

7,951

206.8

Net income (loss)28,360

25,655

10.5

100,741

32,230

212.6

Core net income (4)28,360

28,587

(0.8

)

100,741

66,771

50.9

Tax equivalent adjustment (2)256

259

(1.2

)

763

767

(0.5

)

At Period EndAssets7,468,318

6,974,953

7.1

Earning assets6,774,307

6,340,132

6.8

Loans5,269,566

5,470,548

(3.7

)

Allowance for credit losses - loans73,217

88,917

(17.7

)

Deposits6,248,658

5,795,757

7.8

Stockholders' equity1,031,869

959,025

7.6

Average BalancesAssets7,529,100

6,935,783

8.6

7,473,203

6,437,886

16.1

Earning assets6,773,021

6,211,267

9.0

6,730,807

5,787,134

16.3

Loans5,416,696

5,555,621

(2.5

)

5,513,285

5,095,167

8.2

Deposits and interest-bearing liabilities6,422,455

5,901,652

8.8

6,384,654

5,457,179

17.0

Deposits6,317,229

5,738,006

10.1

6,282,862

5,162,952

21.7

Stockholders' equity1,020,206

927,506

10.0

1,000,047

881,932

13.4

Stockholders' equity / assets13.55

%

13.37

%

1.3

13.38

%

13.70

%

(2.3

)

Per Common Share DataNet Income (Loss)Basic$

0.76

$

0.69

10.1

$

2.70

$

0.91

196.7

Diluted0.76

0.69

10.1

2.70

0.91

196.7

Core diluted (4)0.76

0.77

(1.3

)

2.70

1.88

43.6

Dividends Paid0.27

0.22

22.7

0.77

0.66

16.7

Market Value:High$

32.72

$

21.24

54.0

$

35.90

$

32.05

12.0

Low25.80

14.74

75.0

22.23

10.98

102.5

Close31.84

15.58

104.4

31.84

15.58

104.4

Common Book Value27.90

25.71

8.5

27.90

25.71

8.5

Tangible Common Book Value (1)18.61

16.33

14.0

18.61

16.33

14.0

Shares outstanding, end of period (000s)36,978

37,297

(0.9

)

36,978

37,297

(0.9

)

Performance Ratios (annualized)Tax-equivalent net interest margin (2)3.38

%

3.45

%

(2.0

)

3.39

%

3.54

%

(4.2

)

Return on average assets1.49

%

1.49

%

0.3

1.80

%

0.67

%

169.0

Core return on average assets (4)1.49

%

1.64

%

(8.9

)

1.80

%

1.39

%

30.1

Return on average equity11.03

%

11.12

%

(0.8

)

13.47

%

4.88

%

176.0

Core return on average equity (4)11.03

%

12.26

%

(10.1

)

13.47

%

10.11

%

33.2

Return on average tangible equity16.65

%

17.71

%

(6.0

)

20.59

%

7.70

%

167.6

Core return on average tangible equity (4)16.65

%

19.73

%

(15.6

)

20.59

%

15.99

%

28.8

Efficiency ratio (3)51.82

%

56.54

%

(8.4

)

50.53

%

57.78

%

(12.6

)

Core efficiency ratio (4)51.82

%

49.90

%

3.8

50.53

%

49.06

%

3.0

Effective tax rate17.76

%

19.61

%

(9.4

)

19.50

%

19.79

%

(1.5

)

Dividend payout ratio (core)35.53

%

28.57

%

24.3

28.52

%

35.11

%

(18.8

)

Note: Year-to-date 2020 results include eight months of operations from UCFC compared to nine 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 meaningful PremierFinancial Corp.FinancialSummary andComparison(Unaudited) Three Months Ended Nine Months Ended September 30, September 30,(dollars in %thousands, 2021 2020 change 2021 2020 % changeexcept per sharedata)Summary ofOperations Tax-equivalent $ 61,117 $ 60,418 1.2 $ 183,860 $ 177,898 3.4 interest income(2)Interest expense 3,826 6,888 (44.5 ) 12,930 24,093 (46.3 )

Tax-equivalent 57,291 53,530 7.0 170,930 153,805 11.1 net interestincome (2)Provision 1,820 2,794 (34.9 ) (9,061 ) 51,014 (117.8 )(benefit) forcredit lossesCore provision(benefit) for 1,820 2,794 (34.9 ) (9,061 ) 25,065 (136.2 )credit losses(4)Investment 253 1,480 NM 3,040 1,478 NM securities gains(losses)Non-interestincome 18,061 23,520 (23.2 ) 59,093 60,535 (2.4 )(excludingsecurities gains/losses)Non-interest 39,045 43,563 (10.4 ) 116,223 123,856 (6.2 )expenseCore 39,045 38,445 1.6 116,223 105,154 10.5 non-interestexpense (4)Income tax 6,124 6,259 (2.2 ) 24,397 7,951 206.8 expense(benefit)Net income 28,360 25,655 10.5 100,741 32,230 212.6 (loss)Core net income 28,360 28,587 (0.8 ) 100,741 66,771 50.9 (4)Tax equivalent 256 259 (1.2 ) 763 767 (0.5 )adjustment (2)At Period EndAssets 7,468,318 6,974,953 7.1

Earning assets 6,774,307 6,340,132 6.8

Loans 5,269,566 5,470,548 (3.7 )

Allowance for 73,217 88,917 (17.7 )credit losses -loansDeposits 6,248,658 5,795,757 7.8

Stockholders' 1,031,869 959,025 7.6 equityAverage BalancesAssets 7,529,100 6,935,783 8.6 7,473,203 6,437,886 16.1

Earning assets 6,773,021 6,211,267 9.0 6,730,807 5,787,134 16.3

Loans 5,416,696 5,555,621 (2.5 ) 5,513,285 5,095,167 8.2

Deposits and 6,422,455 5,901,652 8.8 6,384,654 5,457,179 17.0 interest-bearingliabilitiesDeposits 6,317,229 5,738,006 10.1 6,282,862 5,162,952 21.7

Stockholders' 1,020,206 927,506 10.0 1,000,047 881,932 13.4 equityStockholders' 13.55 % 13.37 % 1.3 13.38 % 13.70 % (2.3 )equity / assetsPer Common ShareDataNet Income(Loss)Basic $ 0.76 $ 0.69 10.1 $ 2.70 $ 0.91 196.7

Diluted 0.76 0.69 10.1 2.70 0.91 196.7

Core diluted (4) 0.76 0.77 (1.3 ) 2.70 1.88 43.6

Dividends Paid 0.27 0.22 22.7 0.77 0.66 16.7

Market Value:High $ 32.72 $ 21.24 54.0 $ 35.90 $ 32.05 12.0

Low 25.80 14.74 75.0 22.23 10.98 102.5

Close 31.84 15.58 104.4 31.84 15.58 104.4

Common Book 27.90 25.71 8.5 27.90 25.71 8.5 ValueTangible Common 18.61 16.33 14.0 18.61 16.33 14.0 Book Value (1)Shares 36,978 37,297 (0.9 ) 36,978 37,297 (0.9 )outstanding, endof period (000s)PerformanceRatios(annualized)Tax-equivalent 3.38 % 3.45 % (2.0 ) 3.39 % 3.54 % (4.2 )net interestmargin (2)Return on 1.49 % 1.49 % 0.3 1.80 % 0.67 % 169.0 average assetsCore return on 1.49 % 1.64 % (8.9 ) 1.80 % 1.39 % 30.1 average assets(4)Return on 11.03 % 11.12 % (0.8 ) 13.47 % 4.88 % 176.0 average equityCore return on 11.03 % 12.26 % (10.1 ) 13.47 % 10.11 % 33.2 average equity(4)Return on 16.65 % 17.71 % (6.0 ) 20.59 % 7.70 % 167.6 average tangibleequityCore return on 16.65 % 19.73 % (15.6 ) 20.59 % 15.99 % 28.8 average tangibleequity (4)Efficiency ratio 51.82 % 56.54 % (8.4 ) 50.53 % 57.78 % (12.6 )(3)Core efficiency 51.82 % 49.90 % 3.8 50.53 % 49.06 % 3.0 ratio (4)Effective tax 17.76 % 19.61 % (9.4 ) 19.50 % 19.79 % (1.5 )rateDividend payout 35.53 % 28.57 % 24.3 28.52 % 35.11 % (18.8 )ratio (core) Note: Year-to-date 2020 results include eight months of operations from UCFCcompared to nine 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

Nine Months Ended

September 30,

September 30,

Mortgage Banking Summary2021

2020

2021

2020

Revenue from sales and servicing of mortgage loans:Mortgage banking gains, net$

5,353

$

13,781

$

13,663

$

30,213

Mortgage loan servicing revenue (expense):Mortgage loan servicing revenue1,861

1,898

5,665

5,379

Amortization of mortgage servicing rights(1,822

)

(1,959

)

(6,119

)

(5,302

)

Mortgage servicing rights valuation adjustments783

(1,673

)

5,656

(7,527

)

822

(1,734

)

5,202

(7,450

)

Total revenue from sale and servicing of mortgage loans$

6,175

$

12,047

$

18,865

$

22,763

Mortgage servicing rights:Balance at beginning of period$

21,682

$

21,034

$

21,666

$

10,801

Loans sold, servicing retained2,103

2,463

6,415

6,292

Mortgage servicing rights acquired-

-

-

9,747

Amortization(1,822

)

(1,959

)

(6,119

)

(5,302

)

Carrying value before valuation allowance at end of period21,963

21,538

21,962

21,538

Valuation allowance:Balance at beginning of period(3,641

)

(6,388

)

(8,513

)

(534

)

Impairment recovery (charges)783

(1,673

)

5,656

(7,527

)

Balance at end of period(2,858

)

(8,061

)

(2,857

)

(8,061

)

Net carrying value at end of period$

19,105

$

13,477

$

19,105

$

13,477

COVID-19 Deferrals Update9/30/20216/30/20213/31/202112/31/20209/30/20206/30/2020Commercial loan deferrals$

-

$

-

$

32,370

$

46,038

$

434,554

$

739,632

% of commercial loans0.0

%

0.0

%

0.8

%

1.2

%

11.4

%

19.7

%

% of total loans0.0

%

0.0

%

0.6

%

0.8

%

7.9

%

13.5

%

Retail loan deferrals$

-

$

13

$

3,414

$

7,412

$

48,187

$

73,266

% of retail loans0.0

%

0.0

%

0.2

%

0.4

%

2.9

%

4.3

%

% of total loans0.0

%

0.0

%

0.1

%

0.1

%

0.9

%

1.3

%

Total loan deferrals$

-

$

13

$

35,784

$

53,450

$

482,741

$

812,898

% of total loans0.0

%

0.0

%

0.7

%

1.0

%

8.8

%

14.9

%

Note: Year-to-date 2020 results include eight months of operations from UCFC compared to nine for comparable periods in 2021. PremierFinancialCorp.(dollars inthousands) Three Months Ended Nine Months Ended

September 30, September 30,

Mortgage 2021 2020 2021 2020BankingSummaryRevenue fromsales andservicing ofmortgageloans:Mortgage $ 5,353 $ 13,781 $ 13,663 $ 30,213 bankinggains, netMortgageloanservicingrevenue(expense):Mortgageloan 1,861 1,898 5,665 5,379 servicingrevenueAmortizationof mortgage (1,822 ) (1,959 ) (6,119 ) (5,302 )servicingrightsMortgageservicing 783 (1,673 ) 5,656 (7,527 )rightsvaluationadjustments 822 (1,734 ) 5,202 (7,450 )

Totalrevenue fromsale and $ 6,175 $ 12,047 $ 18,865 $ 22,763 servicing ofmortgageloans Mortgageservicingrights:Balance at $ 21,682 $ 21,034 $ 21,666 $ 10,801 beginning ofperiodLoans sold, 2,103 2,463 6,415 6,292 servicingretainedMortgageservicing - - - 9,747 rightsacquiredAmortization (1,822 ) (1,959 ) (6,119 ) (5,302 )

Carryingvalue beforevaluation 21,963 21,538 21,962 21,538 allowance atend ofperiodValuationallowance:Balance at (3,641 ) (6,388 ) (8,513 ) (534 )beginning ofperiodImpairment 783 (1,673 ) 5,656 (7,527 )recovery(charges)Balance at (2,858 ) (8,061 ) (2,857 ) (8,061 )end ofperiodNet carrying $ 19,105 $ 13,477 $ 19,105 $ 13,477 value at endof period COVID-19Deferrals 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020 6/30/2020UpdateCommercial $ - $ - $ 32,370 $ 46,038 $ 434,554 $ 739,632 loandeferrals% of 0.0 % 0.0 % 0.8 % 1.2 % 11.4 % 19.7 %commercialloans% of total 0.0 % 0.0 % 0.6 % 0.8 % 7.9 % 13.5 %loansRetail loan $ - $ 13 $ 3,414 $ 7,412 $ 48,187 $ 73,266 deferrals% of retail 0.0 % 0.0 % 0.2 % 0.4 % 2.9 % 4.3 %loans% of total 0.0 % 0.0 % 0.1 % 0.1 % 0.9 % 1.3 %loansTotal loan $ - $ 13 $ 35,784 $ 53,450 $ 482,741 $ 812,898 deferrals% of total 0.0 % 0.0 % 0.7 % 1.0 % 8.8 % 14.9 %loans Note: Year-to-date 2020 results include eight months of operations from UCFCcompared to nine for comparable periods in 2021.Premier Financial Corp.Yield AnalysisThree Months Ended September 30,(dollars in thousands)2021

2020

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

5,416,696

$

55,444

4.09

%

$

5,555,621

$

57,158

4.12

%

Securities1,273,148

5,580

1.75

%

552,458

3,083

2.23

% (3)

Interest Bearing Deposits71,276

33

0.19

%

65,551

82

0.50

%

FHLB stock11,901

60

2.02

%

37,637

95

1.01

%

Total interest-earning assets6,773,021

61,117

3.61

%

6,211,267

60,418

3.89

%

Non-interest-earning assets756,079

724,516

Total assets$

7,529,100

$

6,935,783

Deposits and Interest-bearing liabilities:Interest bearing deposits$

4,649,462

$

3,144

0.27

%

$

4,285,287

$

6,555

0.61

%

FHLB advances and other20,098

11

0.22

%

120,417

168

0.56

%

Subordinated debentures84,924

671

3.16

%

36,613

158

1.73

%

Notes payable204

-

0.75

%

6,616

7

0.42

%

Total interest-bearing liabilities4,754,688

3,826

0.32

%

4,448,933

6,888

0.62

%

Non-interest bearing deposits1,667,767

-

-

1,452,719

-

-

Total including non-interest-bearing deposits6,422,455

3,826

0.24

%

5,901,652

6,888

0.47

%

Other non-interest-bearing liabilities86,439

106,625

Total liabilities6,508,894

6,008,277

Stockholders' equity1,020,206

927,506

Total liabilities and stockholders' equity$

7,529,100

$

6,935,783

Net interest income; interest rate spread$

57,291

3.29

%

$

53,530

3.27

%

Net interest margin (4)3.38

%

3.45

%

Average interest-earning assets to average interest bearing liabilities142

%

140

%

Nine Months Ended September 30,2021

2020

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

5,513,285

$

168,810

4.08

%

$

5,095,167

$

167,463

4.38

%

Securities1,098,478

14,733

1.79

%

514,979

9,183

2.38

% (3)

Interest Bearing Deposits107,381

142

0.18

%

131,384

391

0.40

%

FHLB stock11,663

175

2.00

%

45,604

861

2.52

%

Total interest-earning assets6,730,807

183,860

3.64

%

5,787,134

177,898

4.10

%

Non-interest-earning assets742,396

650,752

Total assets$

7,473,203

$

6,437,886

Deposits and Interest-bearing liabilities:Interest bearing deposits$

4,612,354

$

10,867

0.31

%

$

3,929,881

$

21,761

0.74

%

FHLB advances and other16,828

23

0.18

%

249,889

1,690

0.90

%

Subordinated debentures84,895

2,040

3.20

%

36,261

610

2.24

%

Notes payable69

-

0.75

%

8,077

32

0.53

%

Total interest-bearing liabilities4,714,146

12,930

0.37

%

4,224,108

24,093

0.76

%

Non-interest bearing deposits1,670,508

-

-

1,233,071

-

-

Total including non-interest-bearing deposits6,384,654

12,930

0.27

%

5,457,179

24,093

0.59

%

Other non-interest-bearing liabilities88,502

98,775

Total liabilities6,473,156

5,555,954

Stockholders' equity1,000,047

881,932

Total liabilities and stockholders' equity$

7,473,203

$

6,437,886

Net interest income; interest rate spread$

170,930

3.27

%

$

153,805

3.34

%

Net interest margin (4)3.39

%

3.54

%

Average interest-earning assets to average interest bearing liabilities143

%

137

%

Note: Year-to-date 2020 results include eight months of operations from UCFC compared to nine 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. Premier FinancialCorp.Yield Analysis Three Months Ended September 30, (dollars in thousands) 2021 2020

Average Yield Average Yield Balance Interest Rate Balance Interest Rate(2) (1) (2) (1)Interest-earningassets:Loans receivable $ 5,416,696 $ 55,444 4.09 % $ 5,555,621 $ 57,158 4.12 %

1,273,148 5,580 1.75 % 552,458 3,083 2.23 %Securities (3)

Interest Bearing 71,276 33 0.19 % 65,551 82 0.50 %DepositsFHLB stock 11,901 60 2.02 % 37,637 95 1.01 %

Total interest-earning 6,773,021 61,117 3.61 % 6,211,267 60,418 3.89 %assetsNon-interest-earning 756,079 724,516assetsTotal assets $ 7,529,100 $ 6,935,783

Deposits andInterest-bearingliabilities:Interest bearing $ 4,649,462 $ 3,144 0.27 % $ 4,285,287 $ 6,555 0.61 %depositsFHLB advances and 20,098 11 0.22 % 120,417 168 0.56 %otherSubordinated 84,924 671 3.16 % 36,613 158 1.73 %debenturesNotes payable 204 - 0.75 % 6,616 7 0.42 %

Total interest-bearing 4,754,688 3,826 0.32 % 4,448,933 6,888 0.62 %liabilitiesNon-interest bearing 1,667,767 - - 1,452,719 - - depositsTotal including 6,422,455 3,826 0.24 % 5,901,652 6,888 0.47 %non-interest-bearingdepositsOther 86,439 106,625non-interest-bearingliabilitiesTotal liabilities 6,508,894 6,008,277

Stockholders' equity 1,020,206 927,506

Total liabilities and $ 7,529,100 $ 6,935,783stockholders' equityNet interest income; $ 57,291 3.29 % $ 53,530 3.27 %interest rate spreadNet interest margin 3.38 % 3.45 %(4)Averageinterest-earning 142 % 140 %assets to averageinterest bearingliabilities Nine Months Ended September 30, 2021 2020

Average Yield Average Yield Balance Interest Rate Balance Interest Rate(2) (1) (2) (1)Interest-earningassets:Loans receivable $ 5,513,285 $ 168,810 4.08 % $ 5,095,167 $ 167,463 4.38 %

1,098,478 14,733 1.79 % 514,979 9,183 2.38 %Securities (3)

Interest Bearing 107,381 142 0.18 % 131,384 391 0.40 %DepositsFHLB stock 11,663 175 2.00 % 45,604 861 2.52 %

Total interest-earning 6,730,807 183,860 3.64 % 5,787,134 177,898 4.10 %assetsNon-interest-earning 742,396 650,752assetsTotal assets $ 7,473,203 $ 6,437,886

Deposits andInterest-bearingliabilities:Interest bearing $ 4,612,354 $ 10,867 0.31 % $ 3,929,881 $ 21,761 0.74 %depositsFHLB advances and 16,828 23 0.18 % 249,889 1,690 0.90 %otherSubordinated 84,895 2,040 3.20 % 36,261 610 2.24 %debenturesNotes payable 69 - 0.75 % 8,077 32 0.53 %

Total interest-bearing 4,714,146 12,930 0.37 % 4,224,108 24,093 0.76 %liabilitiesNon-interest bearing 1,670,508 - - 1,233,071 - - depositsTotal including 6,384,654 12,930 0.27 % 5,457,179 24,093 0.59 %non-interest-bearingdepositsOther 88,502 98,775non-interest-bearingliabilitiesTotal liabilities 6,473,156 5,555,954

Stockholders' equity 1,000,047 881,932

Total liabilities and $ 7,473,203 $ 6,437,886stockholders' equityNet interest income; $ 170,930 3.27 % $ 153,805 3.34 %interest rate spreadNet interest margin 3.39 % 3.54 %(4)Averageinterest-earning 143 % 137 %assets to averageinterest bearingliabilities Note: Year-to-date 2020 results include eight months of operations from UCFCcompared to nine 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)3rd Qtr 2021

2nd Qtr 2021

1st Qtr 2021

4th Qtr 2020

3rd Qtr 2020

Summary of OperationsTax-equivalent interest income (1)$

61,117

$

61,134

$

61,609

$

61,067

$

60,418

Interest expense3,826

4,245

4,859

5,849

6,888

Tax-equivalent net interest income (1)57,291

56,889

56,750

55,218

53,530

Provision (benefit) for credit losses1,820

(3,919

)

(6,963

)

(6,764

)

2,794

Core provision (benefit) for credit losses (3)1,820

(3,919

)

(6,963

)

(6,764

)

2,794

Investment securities gains (losses)253

661

2,126

76

1,480

Non-interest income (excluding securities gains/losses)18,061

16,884

24,149

18,594

23,520

Non-interest expense39,045

38,375

38,803

41,313

43,563

Core non-interest expense (3)39,045

38,375

38,803

39,123

38,445

Income tax expense (benefit)6,124

8,323

9,952

8,240

6,259

Net income (loss)28,360

31,385

40,996

30,848

25,655

Core net income (3)28,360

31,385

40,996

32,577

28,587

Tax equivalent adjustment (1)256

270

237

251

259

At Period EndTotal assets$

7,468,318

$

7,593,720

$

7,530,462

$

7,211,734

$

6,974,953

Earning assets6,774,307

6,920,008

6,852,357

6,546,299

6,340,132

Loans5,269,566

5,348,400

5,459,683

5,491,240

5,470,548

Allowance for loan losses73,217

71,367

74,754

82,079

88,917

Deposits6,248,658

6,291,459

6,351,919

6,047,841

5,795,757

Stockholders' equity1,031,869

1,027,703

998,186

982,276

959,025

Stockholders' equity / assets13.82

%

13.53

%

13.26

%

13.62

%

13.75

%

Goodwill317,948

317,948

317,948

317,948

317,948

Average BalancesTotal assets$

7,529,100

$

7,549,531

$

7,338,886

$

7,089,060

$

6,935,783

Earning assets6,773,021

6,806,275

6,611,343

6,363,306

6,211,267

Loans5,416,696

5,495,782

5,629,715

5,609,116

5,555,621

Deposits and interest-bearing liabilities6,422,455

6,454,731

6,275,160

6,044,049

5,901,652

Deposits6,317,229

6,339,673

6,190,292

5,956,550

5,738,006

Stockholders' equity1,020,206

1,006,757

972,653

946,223

927,506

Stockholders' equity / assets13.55

%

13.34

%

13.25

%

13.35

%

13.37

%

Per Common Share DataNet Income (Loss):Basic$

0.76

$

0.84

$

1.10

$

0.83

$

0.69

Diluted0.76

0.84

1.10

0.82

0.69

Core diluted (3)0.76

0.84

1.10

0.87

0.77

Dividends Paid0.27

0.26

0.24

0.22

0.22

Market Value:High$

32.72

$

33.97

$

35.90

$

23.49

$

21.24

Low25.80

27.76

22.23

14.90

14.74

Close31.84

28.41

33.26

23.00

15.58

Common Book Value27.90

27.64

26.78

26.34

25.71

Shares outstanding, end of period (000s)36,978

37,178

37,275

37,291

37,297

Performance Ratios (annualized)Tax-equivalent net interest margin (1)3.38

%

3.34

%

3.43

%

3.47

%

3.47

%

Return on average assets1.49

%

1.67

%

2.27

%

1.73

%

1.49

%

Core return on average assets (3)1.49

%

1.67

%

2.27

%

1.83

%

1.64

%

Return on average equity11.03

%

12.50

%

17.09

%

12.97

%

11.12

%

Core return on average equity (3)11.03

%

12.50

%

17.09

%

13.70

%

12.26

%

Return on average tangible equity16.65

%

19.05

%

26.60

%

20.37

%

17.71

%

Core return on average tangible equity (3)16.65

%

19.05

%

26.60

%

21.51

%

19.73

%

Efficiency ratio (2)51.82

%

52.02

%

47.96

%

55.97

%

56.54

%

Core efficiency ratio (3)51.82

%

52.02

%

47.96

%

53.00

%

49.90

%

Effective tax rate17.76

%

20.96

%

19.53

%

21.08

%

19.61

%

Common dividend payout ratio (core)35.53

%

30.95

%

21.82

%

25.29

%

28.57

%

(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. PremierFinancial Corp.SelectedQuarterlyInformation (dollars inthousands, 3rd Qtr 2021 2nd Qtr 2021 1st Qtr 2021 4th Qtr 2020 3rd Qtr 2020except per sharedata)Summary ofOperationsTax-equivalent $ 61,117 $ 61,134 $ 61,609 $ 61,067 $ 60,418 interest income(1)Interest expense 3,826 4,245 4,859 5,849 6,888

Tax-equivalent 57,291 56,889 56,750 55,218 53,530 net interestincome (1)Provision 1,820 (3,919 ) (6,963 ) (6,764 ) 2,794 (benefit) forcredit lossesCore provision(benefit) for 1,820 (3,919 ) (6,963 ) (6,764 ) 2,794 credit losses(3)Investment 253 661 2,126 76 1,480 securities gains(losses)Non-interestincome 18,061 16,884 24,149 18,594 23,520 (excludingsecurities gains/losses)Non-interest 39,045 38,375 38,803 41,313 43,563 expenseCore 39,045 38,375 38,803 39,123 38,445 non-interestexpense (3)Income tax 6,124 8,323 9,952 8,240 6,259 expense(benefit)Net income 28,360 31,385 40,996 30,848 25,655 (loss)Core net income 28,360 31,385 40,996 32,577 28,587 (3)Tax equivalent 256 270 237 251 259 adjustment (1)At Period EndTotal assets $ 7,468,318 $ 7,593,720 $ 7,530,462 $ 7,211,734 $ 6,974,953

Earning assets 6,774,307 6,920,008 6,852,357 6,546,299 6,340,132

Loans 5,269,566 5,348,400 5,459,683 5,491,240 5,470,548

Allowance for 73,217 71,367 74,754 82,079 88,917 loan lossesDeposits 6,248,658 6,291,459 6,351,919 6,047,841 5,795,757

Stockholders' 1,031,869 1,027,703 998,186 982,276 959,025 equityStockholders' 13.82 % 13.53 % 13.26 % 13.62 % 13.75 %equity / assetsGoodwill 317,948 317,948 317,948 317,948 317,948

Average BalancesTotal assets $ 7,529,100 $ 7,549,531 $ 7,338,886 $ 7,089,060 $ 6,935,783

Earning assets 6,773,021 6,806,275 6,611,343 6,363,306 6,211,267

Loans 5,416,696 5,495,782 5,629,715 5,609,116 5,555,621

Deposits and 6,422,455 6,454,731 6,275,160 6,044,049 5,901,652 interest-bearingliabilitiesDeposits 6,317,229 6,339,673 6,190,292 5,956,550 5,738,006

Stockholders' 1,020,206 1,006,757 972,653 946,223 927,506 equityStockholders' 13.55 % 13.34 % 13.25 % 13.35 % 13.37 %equity / assetsPer Common ShareDataNet Income(Loss):Basic $ 0.76 $ 0.84 $ 1.10 $ 0.83 $ 0.69

Diluted 0.76 0.84 1.10 0.82 0.69

Core diluted (3) 0.76 0.84 1.10 0.87 0.77

Dividends Paid 0.27 0.26 0.24 0.22 0.22

Market Value:High $ 32.72 $ 33.97 $ 35.90 $ 23.49 $ 21.24

Low 25.80 27.76 22.23 14.90 14.74

Close 31.84 28.41 33.26 23.00 15.58

Common Book 27.90 27.64 26.78 26.34 25.71 ValueShares 36,978 37,178 37,275 37,291 37,297 outstanding, endof period (000s)PerformanceRatios(annualized)Tax-equivalent 3.38 % 3.34 % 3.43 % 3.47 % 3.47 %net interestmargin (1)Return on 1.49 % 1.67 % 2.27 % 1.73 % 1.49 %average assetsCore return on 1.49 % 1.67 % 2.27 % 1.83 % 1.64 %average assets(3)Return on 11.03 % 12.50 % 17.09 % 12.97 % 11.12 %average equityCore return on 11.03 % 12.50 % 17.09 % 13.70 % 12.26 %average equity(3)Return on 16.65 % 19.05 % 26.60 % 20.37 % 17.71 %average tangibleequityCore return on 16.65 % 19.05 % 26.60 % 21.51 % 19.73 %average tangibleequity (3)Efficiency ratio 51.82 % 52.02 % 47.96 % 55.97 % 56.54 %(2)Core efficiency 51.82 % 52.02 % 47.96 % 53.00 % 49.90 %ratio (3)Effective tax 17.76 % 20.96 % 19.53 % 21.08 % 19.61 %rateCommon dividend 35.53 % 30.95 % 21.82 % 25.29 % 28.57 %payout ratio(core) (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)3rd Qtr 20212nd Qtr 20211st Qtr 20214th Qtr 20203rd Qtr 2020Loan Portfolio CompositionOne to four family residential real estate$

1,129,877

$

1,138,433

$

1,168,559

$

1,201,051

$

1,194,940

Construction885,586

830,822

749,190

667,649

580,060

Commercial real estate2,389,759

2,405,653

2,402,067

2,383,001

2,328,944

Commercial952,729

1,051,972

1,172,910

1,202,353

1,263,565

Consumer finance125,163

118,526

117,539

120,729

128,995

Home equity and improvement264,140

261,842

257,764

272,701

281,010

Total loans5,747,254

5,807,248

5,868,029

5,847,484

5,777,514

Less:Undisbursed loan funds481,434

458,156

405,983

355,065

300,174

Deferred loan origination fees(3,746

)

692

2,363

1,179

6,792

Allowance for credit losses - loans73,217

71,367

74,754

82,079

88,917

Net Loans$

5,196,349

$

5,277,033

$

5,384,929

$

5,409,161

$

5,381,631

Allowance for credit losses - loansBeginning allowance$

71,367

$

74,754

$

82,079

$

88,917

$

88,555

Provision (benefit) for credit losses - loans1,594

(3,631

)

(7,514

)

(6,158

)

3,658

Net recoveries (charge-offs)256

244

189

(680

)

(3,296

)

Ending allowance$

73,217

$

71,367

$

74,754

$

82,079

$

88,917

Credit QualityTotal non-performing loans (1)$

59,865

$

41,296

$

49,298

$

51,682

$

48,360

Real estate owned (REO)261

45

53

343

521

Total non-performing assets (2)$

60,126

$

41,341

$

49,351

$

52,025

$

48,881

Net charge-offs (recoveries)(256

)

(244

)

(189

)

680

3,296

Restructured loans, accruing (3)6,503

5,939

6,068

7,173

8,499

Allowance for credit losses - loans / loans1.39

%

1.33

%

1.37

%

1.49

%

1.63

%

Allowance for credit losses - loans / non-performing assets121.77

%

172.63

%

151.47

%

157.77

%

181.90

%

Allowance for credit losses - loans / non-performing loans122.30

%

172.82

%

151.64

%

158.82

%

183.90

%

Non-performing assets / loans plus REO1.14

%

0.77

%

0.90

%

0.95

%

0.89

%

Non-performing assets / total assets0.81

%

0.54

%

0.66

%

0.73

%

0.70

%

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

%

-0.02

%

-0.01

%

0.05

%

0.24

%

Deposit BalancesNon-interest-bearing demand deposits$

1,618,769

$

1,649,664

$

1,728,895

$

1,597,262

$

1,436,807

Interest-bearing demand deposits and money market2,962,032

2,890,769

2,806,271

2,627,669

2,511,263

Savings deposits786,929

777,862

761,899

700,480

674,354

Retail time deposits less than $250,000692,224

720,317

842,624

912,006

975,658

Retail time deposits greater than $250,000188,704

252,847

212,230

210,424

197,675

Total deposits$

6,248,658

$

6,291,459

$

6,351,919

$

6,047,841

$

5,795,757

(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. Premier FinancialCorp.Selected QuarterlyInformation (dollars inthousands, except 3rd Qtr 2021 2nd Qtr 2021 1st Qtr 2021 4th Qtr 2020 3rd Qtr 2020per share data)Loan PortfolioCompositionOne to four family $ 1,129,877 $ 1,138,433 $ 1,168,559 $ 1,201,051 $ 1,194,940 residential realestateConstruction 885,586 830,822 749,190 667,649 580,060

Commercial real 2,389,759 2,405,653 2,402,067 2,383,001 2,328,944 estateCommercial 952,729 1,051,972 1,172,910 1,202,353 1,263,565

Consumer finance 125,163 118,526 117,539 120,729 128,995

Home equity and 264,140 261,842 257,764 272,701 281,010 improvementTotal loans 5,747,254 5,807,248 5,868,029 5,847,484 5,777,514

Less:Undisbursed loan 481,434 458,156 405,983 355,065 300,174 fundsDeferred loan (3,746 ) 692 2,363 1,179 6,792 origination feesAllowance for credit 73,217 71,367 74,754 82,079 88,917 losses - loansNet Loans $ 5,196,349 $ 5,277,033 $ 5,384,929 $ 5,409,161 $ 5,381,631

Allowance for creditlosses - loansBeginning allowance $ 71,367 $ 74,754 $ 82,079 $ 88,917 $ 88,555

Provision (benefit) 1,594 (3,631 ) (7,514 ) (6,158 ) 3,658 for credit losses -loansNet recoveries 256 244 189 (680 ) (3,296 )(charge-offs)Ending allowance $ 73,217 $ 71,367 $ 74,754 $ 82,079 $ 88,917

Credit QualityTotal non-performing $ 59,865 $ 41,296 $ 49,298 $ 51,682 $ 48,360 loans (1)Real estate owned 261 45 53 343 521 (REO)Total non-performing $ 60,126 $ 41,341 $ 49,351 $ 52,025 $ 48,881 assets (2)Net charge-offs (256 ) (244 ) (189 ) 680 3,296 (recoveries) Restructured loans, 6,503 5,939 6,068 7,173 8,499 accruing (3) Allowance for credit 1.39 % 1.33 % 1.37 % 1.49 % 1.63 %losses - loans /loansAllowance for creditlosses - loans / 121.77 % 172.63 % 151.47 % 157.77 % 181.90 %non-performingassetsAllowance for credit 122.30 % 172.82 % 151.64 % 158.82 % 183.90 %losses - loans /non-performing loansNon-performing 1.14 % 0.77 % 0.90 % 0.95 % 0.89 %assets / loans plusREONon-performing 0.81 % 0.54 % 0.66 % 0.73 % 0.70 %assets / totalassetsNet charge-offs / -0.02 % -0.02 % -0.01 % 0.05 % 0.24 %average loans(annualized) Deposit BalancesNon-interest-bearing $ 1,618,769 $ 1,649,664 $ 1,728,895 $ 1,597,262 $ 1,436,807 demand depositsInterest-bearing 2,962,032 2,890,769 2,806,271 2,627,669 2,511,263 demand deposits andmoney marketSavings deposits 786,929 777,862 761,899 700,480 674,354

Retail time deposits 692,224 720,317 842,624 912,006 975,658 less than $250,000Retail time deposits 188,704 252,847 212,230 210,424 197,675 greater than$250,000Total deposits $ 6,248,658 $ 6,291,459 $ 6,351,919 $ 6,047,841 $ 5,795,757

(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% ofTotalSeptember 30, 2021One to four family residential real estate$

1,129,877

$

1,115,076

$

5,663

0.5

%

$

9,138

0.8

%

Construction885,586

884,265

1,321

0.1

%

-

0.0

%

Commercial real estate2,389,759

2,367,760

146

0.0

%

21,853

0.9

%

Commercial952,729

928,321

442

0.0

%

23,966

2.5

%

Consumer finance125,163

121,580

1,792

1.4

%

1,791

1.4

%

Home equity and improvement264,140

259,175

1,848

0.7

%

3,117

1.2

%

Total loans$

5,747,254

$

5,676,177

$

11,212

0.2

%

$

59,865

1.0

%

June 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

%

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

%

Loan Risk Ratings Information(dollars in thousands)Total BalancePass RatedSpecial Mention% ofTotalClassified% ofTotalSeptember 30, 2021One to four family residential real estate$

1,117,055

$

1,107,787

$

1,315

0.1

%

$

7,953

0.7

%

Construction885,586

866,054

19,532

2.2

%

-

0.0

%

Commercial real estate2,379,734

2,220,881

117,068

4.9

%

41,785

1.8

%

Commercial944,202

903,626

20,474

2.2

%

20,102

2.1

%

Consumer finance124,525

122,956

-

0.0

%

1,569

1.3

%

Home equity and improvement260,408

258,575

-

0.0

%

1,833

0.7

%

PCD loans35,744

18,793

102

0.3

%

16,849

47.1

%

Total loans$

5,747,254

$

5,498,672

$

158,491

2.8

%

$

90,091

1.6

%

June 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

%

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

1,179,783

$

1,176,565

$

268

0.0

%

$

2,950

0.3

%

Construction580,060

556,918

23,142

4.0

%

-

0.0

%

Commercial real estate2,304,147

2,164,495

108,011

4.7

%

31,641

1.4

%

Commercial1,234,158

1,200,581

24,618

2.0

%

8,959

0.7

%

Consumer finance128,057

127,937

-

0.0

%

120

0.1

%

Home equity and improvement276,246

275,831

-

0.0

%

415

0.2

%

PCD loans75,063

28,866

11,443

15.2

%

34,754

46.3

%

Total loans$

5,777,514

$

5,531,193

$

167,482

2.9

%

$

78,839

1.4

%

Premier FinancialCorp. Loan DelinquencyInformation(dollars in Total 30 to 89 % of Non % ofthousands) Balance Current days Total Accrual Total past due Loans September 30, 2021One to four family $ 1,129,877 $ 1,115,076 $ 5,663 0.5 % $ 9,138 0.8 %residential realestateConstruction 885,586 884,265 1,321 0.1 % - 0.0 %

Commercial real 2,389,759 2,367,760 146 0.0 % 21,853 0.9 %estateCommercial 952,729 928,321 442 0.0 % 23,966 2.5 %

Consumer finance 125,163 121,580 1,792 1.4 % 1,791 1.4 %

Home equity and 264,140 259,175 1,848 0.7 % 3,117 1.2 %improvementTotal loans $ 5,747,254 $ 5,676,177 $ 11,212 0.2 % $ 59,865 1.0 %

June 30, 2021One to four family $ 1,138,433 $ 1,122,060 $ 5,757 0.5 % $ 10,616 0.9 %residential realestateConstruction 830,822 830,242 580 0.1 % - 0.0 %

Commercial real 2,405,653 2,388,082 53 0.0 % 17,518 0.7 %estateCommercial 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 %improvementTotal loans $ 5,807,248 $ 5,756,077 $ 9,875 0.2 % $ 41,296 0.7 %

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 %

Loan Risk RatingsInformation(dollars in Total Pass Rated Special % of Classified % ofthousands) Balance Mention Total Total September 30, 2021One to four family $ 1,117,055 $ 1,107,787 $ 1,315 0.1 % $ 7,953 0.7 %residential realestateConstruction 885,586 866,054 19,532 2.2 % - 0.0 %

Commercial real 2,379,734 2,220,881 117,068 4.9 % 41,785 1.8 %estateCommercial 944,202 903,626 20,474 2.2 % 20,102 2.1 %

Consumer finance 124,525 122,956 - 0.0 % 1,569 1.3 %

Home equity and 260,408 258,575 - 0.0 % 1,833 0.7 %improvementPCD loans 35,744 18,793 102 0.3 % 16,849 47.1 %

Total loans $ 5,747,254 $ 5,498,672 $ 158,491 2.8 % $ 90,091 1.6 %

June 30, 2021One to four family $ 1,125,097 $ 1,114,219 $ 1,117 0.1 % $ 9,761 0.9 %residential realestateConstruction 830,822 815,429 15,393 1.9 % - 0.0 %

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

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

September 30, 2020One to four family $ 1,179,783 $ 1,176,565 $ 268 0.0 % $ 2,950 0.3 %residential realestateConstruction 580,060 556,918 23,142 4.0 % - 0.0 %

Commercial real 2,304,147 2,164,495 108,011 4.7 % 31,641 1.4 %estateCommercial 1,234,158 1,200,581 24,618 2.0 % 8,959 0.7 %

Consumer finance 128,057 127,937 - 0.0 % 120 0.1 %

Home equity and 276,246 275,831 - 0.0 % 415 0.2 %improvementPCD loans 75,063 28,866 11,443 15.2 % 34,754 46.3 %

Total loans $ 5,777,514 $ 5,531,193 $ 167,482 2.9 % $ 78,839 1.4 %

Premier Financial Corp.Non-GAAP ReconciliationsNine months ended(In thousands, except per share and ratio data)9/30/219/30/203rd Qtr 20212nd Qtr 20211st Qtr 20214th Qtr 20203rd Qtr 2020Acquisition related charges (pre-tax)$

-

$

17,295

$

-

$

-

$

-

$

2,190

$

3,711

Less: Tax benefit of acquisition related charges-

3,254

-

-

-

460

779

Acquisition related charges (after-tax)$

-

$

14,041

$

-

$

-

$

-

$

1,730

$

2,932

Total non-interest expenses$

116,223

$

123,856

$

39,045

$

38,375

$

38,803

$

41,313

$

43,563

Less: Acquisition related charges (pre-tax)-

17,295

-

-

-

2,190

3,711

Less: FHLB prepayment charges(1)-

1,407

-

-

-

-

1,407

Core non-interest expenses$

116,223

$

105,154

$

39,045

$

38,375

$

38,803

$

39,123

$

38,445

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$

(9,061

)

$

51,014

$

1,820

$

(3,919

)

$

(6,963

)

$

(6,764

)

$

2,794

Less: Acquisition related provision (pre-tax)-

25,949

-

-

-

-

-

Core provision (benefit) for credit losses$

(9,061

)

$

25,065

$

1,820

$

(3,919

)

$

(6,963

)

$

(6,764

)

$

2,794

Non-interest income$

62,133

$

62,013

$

18,314

$

17,545

$

26,275

$

18,669

$

25,000

Less: Securities gains (losses)3,040

1,478

253

661

2,126

76

1,480

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

59,093

$

60,535

$

18,061

$

16,884

$

24,149

$

18,593

$

23,520

Tax-equivalent net interest income$

170,930

$

153,805

$

57,291

$

56,889

$

56,750

$

55,218

$

53,530

Non-interest income (excluding securities gains/losses)59,093

60,535

18,061

16,884

24,149

18,593

23,520

Total revenues230,023

214,340

75,352

73,773

80,899

73,811

77,050

Core non-interest expenses$

116,223

$

105,154

$

39,045

$

38,375

$

38,803

$

39,123

$

38,445

Core efficiency ratio50.53

%

49.06

%

51.82

%

52.02

%

47.96

%

53.00

%

49.90

%

Income (loss) before income taxes$

125,138

$

40,181

$

34,484

$

39,708

$

50,948

$

39,087

$

31,914

Add: Provision (benefit) for credit losses(9,061

)

51,014

1,820

(3,919

)

(6,963

)

(6,764

)

2,794

Pre-tax pre-provision income116,077

91,195

36,304

35,789

43,985

32,323

34,708

Add: Acquisition related charges (pre-tax)-

17,295

-

-

-

2,190

3,711

Core pre-tax pre-provision income$

116,077

$

108,490

$

36,304

$

35,789

$

43,985

$

34,513

$

38,419

Average total assets$

7,473,203

$

6,437,886

$

7,529,100

$

7,549,531

$

7,338,886

$

7,089,060

$

6,935,783

Core pre-tax pre-provision return on average assets2.08

%

2.25

%

1.91

%

1.90

%

2.43

%

1.94

%

2.20

%

Net income (loss)$

100,741

$

32,230

$

28,360

$

31,385

$

40,996

$

30,847

$

25,655

Add: Acquisition related provision (after-tax)-

20,500

-

-

-

-

-

Add: Acquisition related charges (after-tax)-

14,041

-

-

-

1,730

2,932

Core net income$

100,741

$

66,771

$

28,360

$

31,385

$

40,996

$

32,577

$

28,587

Diluted shares - Reported37,311

35,482

37,185

37,358

37,357

37,350

37,334

Add: Dilutive shares for core net income-

-

-

-

-

-

-

Diluted shares - Core37,311

35,482

37,185

37,358

37,357

37,350

37,334

Core diluted EPS$

2.70

$

1.88

$

0.76

$

0.84

$

1.10

$

0.87

$

0.77

Average total assets$

7,473,203

$

6,437,886

$

7,529,100

$

7,549,531

$

7,338,886

$

7,089,060

$

6,935,783

Core return on average assets1.80

%

1.39

%

1.49

%

1.67

%

2.27

%

1.83

%

1.64

%

Average total equity$

1,000,047

$

881,932

$

1,020,206

$

1,006,757

$

972,653

$

946,223

$

927,506

Core return on average equity13.47

%

10.11

%

11.03

%

12.50

%

17.09

%

13.70

%

12.26

%

Average total tangible equity$

654,072

$

557,829

$

675,875

$

660,785

$

624,996

$

602,495

$

576,457

Core return on average tangible equity20.59

%

15.99

%

16.65

%

19.05

%

26.60

%

21.51

%

19.73

%

Note: Year-to-date results include nine months of operations from UCFC compared to eight 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/20211028006123/en/

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