Executive Summary

Q3 2024 EPS was $0.46 GAAP and $0.54 ex-transaction costs; EPS beat third-party consensus of $0.51, while “revenue” of $62.76M missed the $64.55M consensus. Net interest margin (TE) improved 4 bps q/q to 2.50% as deposit repricing began to flow through, but nonperforming assets rose on two multifamily relationships .
Balance sheet mix improved: brokered deposits fell to $287.4M (from $382.7M in Q2), FHLB borrowings declined to $345.0M, CET1 rose to 12.17%, and liquidity remained strong (total liquidity/adjusted uninsured deposits 241.5%) .
Management reiterated merger progress with WesBanco (0.80x WSBC shares per PFC share), targeting close in Q1 2025; dividend of $0.31 per share was declared for payment on Nov 15, 2024 .
Stock reaction catalysts: EPS beat driven by lower provision benefit and stable fee income; ongoing NIM inflection via deposit repricing; offsets include credit normalization (NPA uptick) and modest loan contraction .

What Went Well and What Went Wrong

What Went Well
- NIM stabilization: TE NIM increased to 2.50% (+4 bps q/q) as deposit repricing actions reduced total cost of funds from June to September and wholesale funding costs eased; average interest-bearing deposit costs rose only 5 bps to 3.15% .
- Funding mix improvement: Brokered deposits fell $95.3M q/q; FHLB borrowings decreased $48.0M q/q; tangible equity increased to $714.1M as AOCI improved .
- Capital/liquidity strong: CET1 12.17% (10.32% incl. AOCI), total liquidity/adjusted uninsured deposits 241.5% .
- Management quote on deposit pricing elasticity and repricing program (from earlier call): “we began a repricing program… Early results are encouraging… we expect more forward… pricing movement...” .
What Went Wrong
- Credit normalization: Nonperforming assets rose to $82.3M (0.94% of assets) from $64.6M in Q2 and $39.9M a year ago, driven by two multifamily commercial relationships .
- Loan balances contracted: Total loans (incl. HFS) decreased $110.4M q/q, primarily on an $87.2M decline in commercial loans; mortgage banking income also fell linked-quarter on gain-on-sale/MSR valuation .
- Efficiency drift: Core efficiency ratio worsened to 62.7% from 62.0% in Q2 (vs 56.5% a year ago), reflecting lower revenues and certain expense pressures (e.g., data processing) .

Financial Results

Metric	Q1 2024	Q2 2024	Q3 2024
EPS (Diluted, $)	$0.50	$0.45	$0.46
Core Diluted EPS ($)	$0.50	$0.45	$0.54
GAAP Net Income ($MM)	$17.79	$16.18	$16.67
TE Net Interest Income ($MM)	$49.649	$49.297	$50.255
Non-interest Income ($MM)	$12.496	$12.078	$12.574
Total Core Revenues ($MM)	$62.182	$61.551	$62.419
TE Net Interest Margin (%)	2.50%	2.46%	2.50%
Core Efficiency Ratio (%)	64.17%	61.99%	62.68%
Provision for Credit Losses ($MM)	$(0.133)	$2.902	$(0.290)

Actual vs consensus (Q3 2024):

EPS: $0.54 ex-items vs $0.51 consensus; beat +$0.03 .
Revenue: $62.76M vs $64.55M consensus; miss −$1.79M .

KPIs and balance sheet mix:

KPI	Q1 2024	Q2 2024	Q3 2024
Loans Receivable ($B)	$6.694	$6.682	$6.589
Total Deposits ($B)	$7.183	$7.179	$7.143
Brokered Deposits ($MM)	$368.8	$382.7	$287.4
Loan/Deposit Ratio (%)	93.2%	93.1%	92.2%
Avg Rate – Total Deposits (%)	2.38%	2.47%	2.53%
CET1 Ratio (%)	11.99%	11.91%	12.17%
NPA/Assets (%)	0.46%	0.74%	0.94%
ACL/Loans (%)	1.15%	1.16%	1.16%
Tangible Book Value/Share ($)	$18.64	$18.79	$19.92

Note: S&P Global consensus was unavailable via our estimates tool; estimates here are from Zacks/Nasdaq articles and may differ in definition from bank “core revenues” reported by the company .

Guidance Changes

Metric/Item	Period	Previous Guidance	Current Update	Change
Net Interest Margin (TE)	FY2024	“low-260s to ~2.65%” (revised in Q1 call)	No quantitative update in Q3 release	Maintained (no update)
Expenses (Core)	FY2024	~$156M (down from $160M, per Q1 call)	No quantitative update in Q3 release	Maintained (no update)
Merger with WesBanco	Close timing	Target Q1 2025	Still targeting Q1 2025	Maintained
Dividend	Q4 2024	—	$0.31 declared; payable Nov 15, 2024	Announced

Earnings Call Themes & Trends

Note: A Q3 2024 earnings call transcript could not be located in our filings/document system; we reference Q1 2024 call for prior commentary and Business Wire press releases for Q2 and Q3 updates -.

Topic	Previous Mentions (Q1 2024)	Q2 2024 (PR)	Current Period (Q3 2024)	Trend
Deposit pricing/repricing	Initiated repricing program in March; testing elasticity; early results encouraging .	Merger announced; deposit details not primary theme in PR .	Average cost of customer interest-bearing deposits declined from June to September; total cost of funds down; NIM up from June to September .	Improving cost of funds, supporting NIM
Net interest margin	Guide to low-260s for FY24 with fewer Fed cuts .	TE NIM 2.46% (Q2) per Q3 table .	TE NIM 2.50% (+4 bps q/q) .	Stabilizing to improving
Credit quality	Favorable; low net charge-offs; detailed review of larger credits underway .	Not highlighted in PR; underlying normalization underway .	NPA up to 0.94% of assets on two multifamily relationships; ACL/Loans steady at 1.16% .	Deteriorating from low base
Loan growth	Q1: Loans flat; pipeline building; residential new-build strong .	Q2: Mixed; merger focus .	Total loans decreased $110.4M q/q; commercial −$87.2M .	Softer
Wholesale funding mix	Plan to keep wholesale flat; optimize FHLB vs brokered by pricing .	Not highlighted.	FHLB borrowings fell to $345.0M; brokered deposits down sharply .	Improving mix
Merger integration	—	Definitive agreement with WesBanco; 0.80x exchange ratio .	Target close Q1 2025; capital ratios improved .	On track

Management Commentary

Deposit strategy and repricing (Q1 call): “we began a repricing program to get ahead of the Fed… testing elasticity of our deposit portfolios… early results are encouraging, and we expect more forward… pricing movement” .
Funding and wholesale usage (Q1 Q&A): “we would not expect to have to lean into wholesale funding. We’re changing the mix between FHLB [and] broker depending on relative pricing” .
Commercial deposits behavior (Q1 Q&A): Clients used cash to fund CapEx/working capital rather than borrow, depressing NIB balances earlier in the year, with balances starting to replenish in April .
Credit migration (Q1 Q&A): Movement from Special Mention to Substandard concentrated in an existing accruing credit with a path to normalization over coming quarters .

Note: No Q3 2024 earnings call transcript was available in our system; Q3 commentary above relies on the company’s Q3 press release narrative and earlier Q1 call commentary for continuity - -.

Q&A Highlights

Note: Q3 2024 Q&A not available. Key recurring Q&A themes from Q1 2024:

Liability mix/wholesale funding: Management guided to keeping wholesale broadly flat, optimizing between brokered and FHLB on relative pricing .
Credit migration: Reclassification within an existing accruing credit; anticipated improvement after operational adjustments by the borrower .
Deposit inflows and behavior: Commercial clients temporarily used cash for CapEx; balances stabilized by March and began to improve in April .
Deposit repricing: Program to lower funding costs and test product elasticity; early retention acceptable while trimming rates .

Estimates Context

S&P Global (Capital IQ) consensus was unavailable via our estimates tool for PFC at this time; therefore, we reference third-party consensus from Zacks/Nasdaq. EPS (ex-items) of $0.54 vs $0.51 beat; “Revenue” of $62.76M vs $64.55M missed (Zacks uses a revenue definition that approximates TE NII + noninterest income; company discloses “core revenues” of $62.42M) .
Additional Zacks detail: TE NIM matched two-analyst average (2.5%); core efficiency ratio trailed (67.2% vs ~60%); TE NII came in below estimate ($50.26M vs $51.5M) .

Key Takeaways for Investors

Near-term: Expect the stock to key off EPS beats vs soft topline prints; margin stabilization plus visible funding mix improvement can support multiple, but NPA trajectory is a watch-item; merger milestones remain an upside catalyst .
Margin inflection: Deposit repricing and lower wholesale costs are flowing through, lifting NIM—sensitivity to further rate path and pace of customer migration remains material .
Credit normalization: NPA/Assets rose to 0.94% due to multifamily exposures; reserve coverage steady; watch criticized loan trends and any spillover into net charge-offs .
Balance sheet defense: Brokered and FHLB balances down, liquidity strong (241.5% of adjusted uninsured deposits), CET1 up—supports resilience into merger close .
Fee income mix: Mortgage banking softer q/q; wealth management stable; overall noninterest income steady—limits revenue volatility but not a primary growth driver near term .
Merger path: Q1 2025 closing target intact; shareholders approved subsequently (per later disclosures), with strategic/scale benefits expected to follow integration .
Dividend continuity: $0.31/share declared; capital levels accommodate payout while preserving flexibility as the merger proceeds .

Appendix: Additional Press Releases (Q2/Q3 context)

Q3 2024 press release (Business Wire): results and dividend announcement - .
Q2 2024 press release and merger announcement (Business Wire): EPS $0.45; merger terms and timeline .

PREMIER FINANCIAL CORP (PFC)·Q3 2024 Earnings Summary