Name: PREMIER FINANCIAL CORP Q4 2024 Earnings Call
Start: 2025-01-21T21:30:20.000Z

Executive Summary

Q4 2024 diluted EPS was $0.58 and core diluted EPS was $0.63, up $0.12 and $0.09 sequentially; results included $2.1M pre-tax merger transaction costs (~$0.05 per share after tax) .
Tax‑equivalent net interest margin expanded 13 bps q/q to 2.63% as interest‑bearing deposit costs fell 30 bps; total cost of funds declined and TE net interest income rose 4.2% q/q to $52.4M .
Funding mix shifted: brokered deposits fell ~$232.7M q/q to $54.7M while FHLB borrowings increased ~$162.0M to $507.0M; non‑brokered deposits were stable at $6.80B .
Credit quality remained elevated vs prior year: non‑performing assets were 0.95% of assets (vs 0.41% in Q4 2023), criticized loans rose to $263.3M (3.95% of loans), and net charge‑offs were $1.1M .
Merger with WesBanco advanced: shareholder approvals obtained (Dec 11) and closing remains on track subject to regulatory approvals; dividend maintained at $0.31 per share (payable Feb 7, 2025) .

What Went Well and What Went Wrong

Margin and funding costs improved: TE NIM up 13 bps to 2.63%; interest‑bearing deposit costs down 30 bps to 2.85% as rate‑tier reductions flowed through and wholesale funding costs declined alongside Fed rate cuts .
Operating efficiency strengthened: headline efficiency ratio improved to 60.4% (core 57.1%), with core non‑interest expense down 5% q/q to $37.2M driven by lower staffing .
Mortgage banking recovered sequentially: non‑interest income rose to $13.1M (+3.9% q/q), with mortgage banking up $0.6M q/q and $1.0M y/y on better gain‑on‑sale margins and MSR valuation .
“Shareholder approval is a key milestone that reflects strong confidence in the opportunities this merger creates…” — WesBanco CEO Jeff Jackson, on the Premier merger progress .

Credit metrics remain a watch item: NPAs were 0.95% of assets vs 0.41% a year ago; criticized loans increased to $263.3M (3.95% of loans), and delinquencies rose to 0.32% of loans .
Loan balances contracted: total loans including HFS fell ~$115.7M q/q (commercial down ~$67.7M), with average loan yields down 8 bps q/q to 5.25% on floating‑rate loans .
Funding reliance shifted to wholesale: brokered deposits dropped sharply, but FHLB borrowings rose to $507.0M (+$162.0M q/q), partially offsetting deposit runoff .

Metric	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Diluted EPS ($)	$0.56	$0.45	$0.46	$0.58
Core Diluted EPS ($)	$0.56	$0.45	$0.54	$0.63
Tax‑Eq Net Interest Income ($USD Millions)	$52.593	$49.297	$50.255	$52.383
Total Non‑interest Income ($USD Millions)	$11.789	$12.078	$12.574	$13.063
Tax‑Eq Net Interest Margin (%)	2.65%	2.46%	2.50%	2.63%
Efficiency Ratio (%)	59.48%	62.08%	67.15%	60.36%
Non‑interest Expenses ($USD Millions)	$37.893	$38.208	$41.915	$39.291
Provision for Credit Losses ($USD Millions)	$1.761	$2.902	$(0.290)	$0.011
Net Income ($USD Millions)	$20.070	$16.176	$16.665	$20.774

Category ($USD Millions)	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Residential Real Estate	$1,810.3	$1,806.0	$1,806.4	$1,765.4
Commercial Real Estate	$2,839.9	$2,844.8	$2,853.1	$2,895.4
Commercial (ex PPP)	$1,056.3	$1,037.7	$969.5	$957.3
Consumer (Direct/Indirect + HE)	$461.8	$456.6	$456.2	$454.0
Total Loans (GAAP)	$6,739.4	$6,682.1	$6,588.7	$6,476.6

KPI	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Interest‑bearing Deposit Cost (%)	2.83%	3.10%	3.15%	2.85%
Brokered Deposits (Ending, $USD Millions)	$341.9	$382.7	$287.4	$54.7
FHLB Borrowings (Ending, $USD Millions)	$280.0	$393.0	$345.0	$507.0
NPAs / Total Assets (%)	0.41%	0.74%	0.94%	0.95%
Criticized Loans ($USD Millions)	$186.4	$207.8	$245.7	$263.3
ACL / Loans (%)	1.14%	1.16%	1.16%	1.17%
CET1 Ratio (%)	11.70%	11.91%	12.17%	12.63%
Liquidity / Adj. Uninsured Deposits (%)	218.3%	255.7%	241.5%	236.1%

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per share	Q1 2025	$0.31 payable Nov 15, 2024 (Q3 declaration)	$0.31 payable Feb 7, 2025; record date Jan 31, 2025	Maintained
Merger close timing	Q1 2025	Expected Q1 2025, subject to approvals	On track to close during Q1 2025, subject to regulatory approvals	Maintained
Financial/operating guidance	Q4 2024 / FY	None provided in filings	None provided in filings	Maintained (none)

Note: No Q4 2024 earnings call transcript filed; themes reflect management disclosures across Q2–Q4 press releases .

Topic	Previous Mentions (Q2 & Q3)	Current Period (Q4)	Trend
Deposit costs	Q2: +9 bps q/q to 3.10%; Q3: +5 bps q/q to 3.15%	Decreased 30 bps to 2.85%; customer tier reductions continuing	Improving
Net interest margin	Q2: 2.46%; Q3: 2.50%	2.63% (+13 bps q/q)	Improving
Credit quality	Q2: NPAs 0.74%; Q3: NPAs 0.94% (multifamily relationships)	NPAs 0.95%; criticized loans $263.3M; delinquencies 0.32%	Deteriorated vs LY; stabilizing q/q
Mortgage banking	Q2: $2.047M; Q3: $1.194M	$1.771M; better gain‑on‑sale and MSR valuation	Recovering
Funding mix	Q2: brokered deposits $382.7M; FHLB $393.0M	Brokered down to $54.7M; FHLB up to $507.0M	Shift to FHLB
Merger progress	Q2: merger announced; conf call canceled	Shareholder approvals obtained; closing on track subject to approvals	Advancing

“Shareholder approval is a key milestone that reflects strong confidence in the opportunities this merger creates…” — Jeff Jackson, President & CEO of WesBanco, on the Premier merger progress .
Management emphasized deposit repricing actions taken since March 2024 that lowered average interest‑bearing deposit costs and supported NIM expansion from June to December .
Efficiency improved materially: core efficiency ratio was 57.1% vs 62.7% in Q3, driven by lower staffing costs (compensation/benefits $19.8M vs $21.8M in Q3) .
CET1/Tier 1/Total capital ratios improved in Q4 to 12.63%, 13.14%, and 15.02% (all above well‑capitalized levels, including pro forma AOCI) .

No Q4 2024 earnings call transcript was filed; Premier canceled the Q2 conference call following the merger announcement, and subsequent quarters were communicated via releases . As a result, there were no formal Q&A clarifications in Q4 filings .

Wall Street consensus (S&P Global) for PFC’s Q4 2024 EPS and revenue was unavailable in our dataset due to missing Capital IQ mapping; therefore, we cannot provide a vs‑consensus comparison at this time [GetEstimates errors]. Where relevant, internal comparisons focus on sequential and year‑over‑year performance from company filings .

Core earnings quality improved: sequential EPS growth, lower funding costs, and stronger NIM underpin near‑term earnings momentum despite loan contraction .
Watch credit normalization: NPAs and criticized loans are higher vs 2023; provisioning was modest in Q4 but elevated metrics warrant caution into 2025 .
Funding mix trade‑off: aggressive reduction in brokered deposits tightened the deposit base while FHLB borrowings increased—monitor wholesale dependency and cost trajectory as rates evolve .
Cost discipline and efficiency: core non‑interest expense fell 5% q/q; sustaining staffing and tech expense control remains key to driving core efficiency ratio improvements .
Capital and liquidity buffers: improved CET1 and robust liquidity to adjusted uninsured deposits (236%) provide resilience during the merger process and credit cycle .
Mortgage banking tailwinds: sequential rebound on gain‑on‑sale/MSR should support fee income, though volumes/margins remain sensitive to rate volatility .
Merger catalyst: shareholder approvals secured; closing depends on regulatory approvals—timing and integration execution are potential stock drivers near term .