Premier Financial Corp. Reports $71.4 Million Net Income for Fiscal Year 2024, Decline from Previous Year

Premier Financial Corp. reported a net income of $71.4 million for the fiscal year ending December 31, 2024, a decrease from $111.3 million in 2023. This decline in profitability is attributed to several factors, including a significant reduction in noninterest income following the sale of First Insurance, which generated a $36.3 million gain in 2023. The company's diluted earnings per share fell to $1.98 from $3.11 in the previous year. Total interest income increased by 7.4% to $392.7 million, driven primarily by higher loan income, while net interest income decreased to $201.3 million, reflecting a narrowing net interest margin of 2.52%, down from 2.75% in 2023.

In terms of operational changes, Premier completed the sale of First Insurance Group of the Midwest, Inc. on June 30, 2023, which resulted in a pre-tax gain of $36.3 million. The company also announced a definitive merger agreement with Wesbanco, Inc. on July 26, 2024, under which Premier will merge into Wesbanco in a stock-for-stock transaction expected to close on February 28, 2025. This merger is anticipated to enhance the combined company's community banking capabilities and expand its product offerings.

Premier's total assets decreased slightly to $8.58 billion as of December 31, 2024, down from $8.63 billion in 2023, primarily due to a $338.5 million reduction in loans, which totaled $6.67 billion. The decrease in loans was attributed to lower origination volumes, particularly in commercial and construction lending. The company’s loan portfolio remains concentrated in commercial real estate and commercial loans, which together accounted for approximately 57.8% of total loans at year-end. The allowance for credit losses was $75.7 million, representing 1.17% of total loans, compared to 1.14% in the previous year.

The company’s deposit base also saw a decline, with total deposits at $6.85 billion, down 4.1% from $7.14 billion in 2023. This decrease was driven by a reduction in noninterest-bearing demand deposits and brokered deposits. However, Premier's capital ratios remained strong, with a common equity tier 1 capital ratio of 12.62%, well above the regulatory minimum. Looking ahead, Premier anticipates that the merger with Wesbanco will provide opportunities for growth and improved service offerings, although it also acknowledges potential challenges in integrating operations and maintaining customer relationships during the transition.