Premier Financial Corp. Announces Second Quarter 2022 Results Including Strong Loan and Deposit Growth

Second Quarter 2022 Highlights

• Loan growth of $494.1 million (up 35.7% annualized) including $314.8 million for commercial loans excluding PPP (up 34.5% annualized) and $139.2 million for residential loans including held for sale (up 37.8% annualized)
• Deposit growth of $199.1 million (up 12.6% annualized) including $53.4 million of non-interest-bearing (up 12.3% annualized)
• Net interest income (tax equivalent) of $59.3 million or $58.5 million excluding PPP and marks, up 2.1% and 8.8%, respectively, from 2022 first quarter
• Net interest margin (tax equivalent) of 3.36% or 3.32% excluding PPP and acquisition marks accretion, down six but up 12 basis points, respectively, from 2022 first quarter
• Asset quality improved with non-performing loans down 26.6% and classified loans down 19.0% from 2022 first quarter
• Declared dividend of $0.30 per share, up 11.1% from prior year comparable period

DEFIANCE, Ohio--(BUSINESS WIRE)--Premier Financial Corp. (Nasdaq: PFC) (“Premier” or the “Company”) announced today 2022 second quarter results. Net income for the second quarter of 2022 was $22.4 million, or $0.63 per diluted common share, compared to $31.4 million, or $0.84 per diluted common share, for the second quarter of 2021. The year-over-year comparison is primarily impacted by increased provision for credit losses due to loan growth, lower PPP interest income and securities gain/loss fluctuations, which are summarized as follows and discussed further below.

$000s except EPS	Second quarter 2022			Second quarter 2021
Item	Pre-tax	After-tax	EPS	Pre-tax	After-tax	EPS
Provision benefit (expense)	($6,566)	($5,187)	($0.15)	$3,919	$3,096	$0.08
PPP interest income	$160	$126	$0.00	$3,950	$3,121	$0.08
Security gains (losses)	($1,161)	($917)	($0.03)	$661	$522	$0.01

“Excellent work by the entire Premier team to essentially drive an entire year’s worth of loan and deposit growth into a single quarter,” said Gary Small, President and CEO of Premier. “Commercial, consumer and residential mortgage balances grew in a range of 8.6% to 13.5% for the quarter while deposit growth totaled 3.2%. Year-to-date loan growth adjusting for PPP totaled 12.4%, a reflection of the strength of the business opportunities across our markets and the solid financial position of the households we serve.”

Quarterly results

Strong loan and deposit growth

Gross loans including those held for sale increased $494.1 million (up 35.7% annualized) on a linked quarter basis. Loan growth occurred in each category including $314.8 million from commercial loans excluding PPP (up 34.5% annualized), $139.2 million from residential loans including held for sale (up 37.8% annualized) and $53.2 million from consumer/home equity loans (up 54.1% annualized). PPP loans decreased $14.1 million and were only $4.6 million as of June 30, 2022.

Deposits increased $199.1 million (up 12.6% annualized) on a linked quarter basis. Deposit growth occurred in each category including $53.4 million from non-interest bearing deposits (up 12.3% annualized) and $145.8 million from interest-bearing deposits (up 12.7% annualized).

Net interest income and margin expansion

Net interest income of $59.3 million on a tax equivalent basis in the second quarter of 2022 was up 2.1% from $58.1 million in the first quarter of 2022 and up 4.3% from $56.9 million in the second quarter of 2021. Net interest margin of 3.36% in the second quarter of 2022 decreased eight basis points from 3.44% in the first quarter of 2022 but increased two basis points from 3.34% in the second quarter of 2021. Results for all periods include the impact of PPP as well as acquisition marks and related accretion for the UCFC acquisition. Second quarter 2022 includes $469,000 of accretion in interest income, $237,000 of accretion in interest expense and $160,000 of interest income on average balances of $13.0 million for PPP. Only $12,000 of PPP fees remain unrecognized as of June 30, 2022. Excluding the impact of acquisition marks accretion and PPP loans, net interest income was $58.5 million, up 8.8% from $53.7 million in the first quarter of 2022 and up 14.0% from $51.3 million in the second quarter of 2021. Additionally, net interest margin was 3.32% for the second quarter of 2022, up 12 basis points from 3.20% for the first quarter of 2022 and the second quarter of 2021. These improved results are primarily due to the combination of loan growth excluding PPP as discussed above and higher loan yields excluding PPP and acquisition marks accretion, which were 3.94% for the second quarter of 2022 compared to 3.80% in the first quarter of 2022 and 3.91% in the second quarter of 2021. The cost of funds in the second quarter of 2022 was 0.24%, up six basis points from the first quarter of 2022 but down two basis points from the second quarter of 2021. The linked quarter increase was primarily due to an increased utilization of higher cost FHLB borrowings as a result of loan growth in excess of deposit growth. The year-over-year decrease is primarily due to lower average deposit costs, which were 0.17% for the second quarter of 2022 compared to 0.22% for the second quarter of 2021.

Service fees increasing but total non-interest income impacted by mortgage banking and securities

Service fees in the second quarter of 2022 were $6.7 million, an 11% increase from $6.0 million in the first quarter of 2022 and a 6% increase from $6.3 million in the second quarter of 2021, primarily due to increased consumer activity for interchange and ATM/NSF charges. However, total non-interest income in the second quarter of 2022 of $14.4 million was down from $16.9 million in the first quarter of 2022 and $17.3 million in the second quarter of 2021 due to fluctuations in mortgage banking and gains/losses on securities. Mortgage banking income decreased $2.3 million on a linked quarter basis due to a $1.4 million decrease in gains primarily from lower saleable mix and a $0.9 million lower MSR valuation gain. Mortgage banking income for the second quarter decreased $0.2 million year-over-year due to a $1.5 million decrease in gains primarily from compressed margins and lower saleable mix offset by a $1.3 million benefit from lower MSR amortization and an MSR valuation gain in 2022 compared to a loss in 2021. Securities losses were $1.2 million in the second quarter of 2022 from decreased valuations on equity securities, compared to $0.6 million of losses on equity securities in the first quarter of 2022 and compared to $0.7 million of net gains in the second quarter of 2021, comprised of $1.5 million from available-for-sale security sales gains offset by $0.8 million of losses on equity securities. Other income for the second quarter decreased $1.5 million from 2021, primarily due to a $1.3 million non-recurring settlement payment in the second quarter of 2021.

“The rising rate environment is having a predictably favorable effect on net interest income,” said Small. “Margin improvement combined with outstanding loan growth make a powerful combination overcoming the unfavorable effects of a flat to inverted yield curve. Our favorable interest income trend is serving to offset the negative effect the current rate environment has created for the residential mortgage business. While our mortgage origination activity has performed well during the first half of the year, the combination of rising rates, interest rate volatility, and general market uncertainty continues to put pressure on gain on sale fee income and is expected to continue through the remainder of the year.”

Managing non-interest expenses and efficiency

Non-interest expenses in the second quarter of 2022 were $39.1 million, a 5% decrease from $41.3 million in the first quarter of 2022 but a 3% increase from $38.1 million in the second quarter of 2021, primarily due to fluctuations in compensation and benefit expenses. Compensation and benefits were $22.3 million in the second quarter of 2022, compared to $25.5 million in the first quarter of 2022 and $21.0 million in the second quarter of 2021. The linked quarter decrease was primarily due to higher deferred costs related to increased loan production and lower healthcare benefit costs. The year-over-year increase was primarily due to costs related to higher staffing levels for our growth initiatives. All other non-interest expenses increased $1.0 million on a linked quarter basis primarily due to consulting/advisory services and decreased a net $0.3 million on a year-over-year basis due to cost cutting initiatives. The efficiency ratio for the second quarter 2022 of 52.23% improved from 54.60% in the first quarter of 2022, primarily due to lower expenses, and was generally consistent with 51.85% in the second quarter of 2021.

“We continue to invest in our people and efforts to improve our client's experience while managing to keep our overall expense profile well under control,” said Small.

Credit quality

Non-performing assets totaled $35.2 million, or 0.44% of assets, at June 30, 2022, a decrease from $47.6 million at March 31, 2022, and from $41.3 million at June 30, 2021. Loan delinquencies increased to $11.2 million, or 0.2% of loans, at June 30, 2022, from $7.6 million at March 31, 2022, and from $9.9 million at June 30, 2021. Classified loans totaled $48.8 million, or 0.7% of loans, as of June 30, 2022, a decrease from $60.3 million at March 31, 2022, and from $101.3 million at June 30, 2021.

The 2022 second quarter results include net loan charge-offs of $5.3 million and a total provision expense of $6.6 million, compared with net loan recoveries of $244,000 and a total provision benefit of $3.9 million for the same period in 2021. The current year provision is primarily due to loan growth, whereas the prior year provision was primarily due to the improving economic environment following the COVID-19 pandemic-induced economic recession and reserve increase in 2020. The allowance for credit losses as a percentage of total loans was 1.14% at June 30, 2022, compared with 1.25% at March 31, 2022, and 1.33% at June 30, 2021. The allowance for credit losses as a percentage of total loans excluding PPP and including unaccreted acquisition marks was 1.21% at June 30, 2022, compared with 1.34% at March 31, 2022, and 1.57% at June 30, 2021. The continued economic improvement following the 2020 pandemic-related downturn has resulted in a year-over-year decrease in the allowance percentages.

“Asset quality continued to improve this quarter with a 27% decrease in non-performing loans and a 19% decrease in classified loans,” said Paul Nungester, CFO of Premier. “Our non-performing loans have declined to 0.5% of total loans while our coverage level of non-performing loans has increased to 193%.”

Year to date results

For the six-month period ended June 30, 2022, net income totaled $48.7 million, or $1.36 per diluted common share, compared to $72.4 million, or $1.94 per diluted common share for the six months ended June 30, 2021. The year-over-year comparison is primarily impacted by fluctuations in the provision for credit losses, mortgage banking income, PPP interest income and securities gains/losses, which are summarized as follows.

$000s except EPS	First half 2022			First half 2021
Item	Pre-tax	After-tax	EPS	Pre-tax	After-tax	EPS
Provision benefit (expense)	($7,501)	($5,926)	($0.17)	$10,882	$8,596	$0.23
Mortgage banking income	$6,200	$4,898	$0.14	$12,691	$10,025	$0.27
PPP interest income	$3,801	$3,003	$0.08	$8,971	$7,087	$0.19
Security gains (losses)	($1,804)	($1,425)	($0.04)	$2,787	$2,202	$0.06

Net interest income of $117.4 million on a tax equivalent basis in the first half of 2022 was up 3.3% from $113.6 million in the first half of 2021. Net interest margin of 3.40% in the first half of 2022 increased by one basis point from 3.39% in the first half of 2021. Results for each period include the impact of PPP as well as acquisition marks and related accretion for the UCFC acquisition. The first half of 2022 includes $959,000 of accretion in interest income, $484,000 of accretion in interest expense and $3.8 million of interest income on average balances of $22.9 million for PPP. Excluding the impact of acquisition marks accretion and PPP loans, net interest income was $112.2 million, up 10.8% from $101.3 million in the first half of 2021. Additionally, net interest margin was 3.26% for the first half of 2022, up four basis points from 3.22% for first half of 2021. These improved results are primarily due to lower costs of funds and loan growth excluding PPP, partially offset by lower PPP income and accretion from acquisition marks. Cost of funds in the first half of 2022 were 0.21%, down 8 basis points from the first half of 2021. The year-over-year decrease is primarily due to lower average deposit costs, which were 0.16% for the first half of 2022 compared to 0.25% for the first half of 2021.

Service fees in the first half of 2022 were $12.7 million, an 8% increase from $11.8 million in the first half of 2021, primarily due to increased consumer activity for interchange and ATM/NSF charges. However, total non-interest income in the first half of 2022 of $31.2 million was down from $43.4 million in the first half of 2021 due to fluctuations in mortgage banking, gains/losses on securities and other income. Mortgage banking income decreased $6.5 million from 2021 due to a $4.6 million decrease in gains primarily from compressed margins and lower saleable mix and a $3.3 million decrease from lower MSR valuation gains, partially offset by a $1.5 million benefit from lower MSR amortization. Securities losses were $1.8 million in the first half of 2022 from decreased valuations on equity securities compared to $2.8 million of net gains in the first half of 2021 comprised of $2.0 million from available-for-sale security sales gains and $0.8 million of gains on equity securities. Other income for the first half decreased $1.5 million from 2021, primarily due to a $1.3 million non-recurring settlement payment in the first half of 2021.

Non-interest expenses in the first half of 2022 were $80.4 million, a 5% increase from $76.7 million in the first half of 2021, primarily due to fluctuations in compensation and benefit expenses. Compensation and benefits were $47.8 million in the first half of 2022 compared to $43.0 million in the first half of 2021. The year-over-year increase was primarily due to costs related to higher staffing levels for our growth initiatives. All other non-interest expenses decreased a net $1.2 million on a year-over-year basis due to cost cutting initiatives. The efficiency ratio for the first half of 2022 was 53.42% compared to 49.75% in the first half of 2021, partly due to higher expenses but primarily due to lower non-interest income discussed above.

The 2022 first half results include net loan charge-offs of $5.2 million and a total provision expense of $7.5 million, compared with net loan recoveries of $500,000 and a total provision benefit of $10.9 million for the same period in 2021. The current year’s provision expense is primarily due to loan growth, whereas the prior year’s provision benefit was primarily due to the improving economic environment following the COVID-19 pandemic-induced economic recession and reserve increase in 2020.

Total assets at $8.01 billion

Total assets at June 30, 2022, were $8.01 billion, compared to $7.59 billion at March 31, 2022, and $7.59 billion at June 30, 2021. Gross loans receivable were $5.90 billion at June 30, 2022, compared to $5.39 billion at March 31, 2022, and $5.35 billion at June 30, 2021. At June 30, 2022, gross loans receivable increased $547.7 million from a year ago, despite a $282.7 million decrease in PPP loans. Excluding PPP, loans grew $830.4 million organically, or 16.4% from a year ago. Commercial loans excluding PPP increased by $543.2 million from June 30, 2021, to 2022, or 15.9%. Securities at June 30, 2022, were $1.15 billion, compared to $1.23 billion at March 31, 2022, and $1.29 billion at June 30, 2021. Also, at June 30, 2022, goodwill and other intangible assets totaled $339.3 million compared to $340.6 million at March 31, 2022, and $345.1 million at June 30, 2021, with the decreases attributable to intangibles amortization.

Total deposits at June 30, 2021, were $6.52 billion, compared with $6.32 billion at March 31, 2022, and $6.29 billion at June 30, 2021. At June 30, 2022, total deposits grew $199.1 million organically, or 12.6% annualized from the prior quarter and $224.9 million of 3.6% from June 30, 2021.

Total stockholders’ equity was $0.90 billion at June 30, 2022, compared to $0.94 billion at March 31, 2022, and $1.03 billion at June 30, 2021. The quarterly decrease in stockholders’ equity was primarily due to a decrease in accumulated other comprehensive income (“AOCI”) and buybacks. The decrease in AOCI is primarily related to a $42.0 million negative valuation adjustment on the available-for-sale securities portfolio. The Company also completed the repurchase of 90,870 common shares for $2.6 million during the quarter. At June 30, 2022, 1,200,130 common shares remained available for repurchase under the Company’s existing repurchase program.

Dividend to be paid August 12

The Board of Directors declared a quarterly cash dividend of $0.30 per common share payable August 12, 2022, to shareholders of record at the close of business on August 5, 2022. The dividend represents an annual dividend of 4.4 percent based on the Premier common stock closing price on July 25, 2022. Premier has approximately 35,555,000 common shares outstanding.

Conference call

Premier will host a conference call at 11:00 a.m. ET on Wednesday, July 27, 2022, to discuss the earnings results and business trends. The conference call may be accessed by calling 1-844-200-6205 and using access code 276702. Internet access to the call is also available (in listen-only mode) at the following URL: https://events.q4inc.com/attendee/403093314. The webcast 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 74 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, 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 June 30, 2022, 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 interest income to be a useful supplemental measure of our operating performance. We define core net interest income as net interest income on a tax-equivalent basis excluding income from PPP loans and purchase accounting marks accretion. We believe that this metric is a useful supplemental measure of operating performance because investors and equity analysts may use this measure 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 income from PPP loans and purchase accounting marks accretion. Our supplemental reporting measures and similarly entitled financial measures are widely used by investors, equity and debt analysts and ratings agencies in the valuation, comparison, rating and investment recommendations of companies. Our management uses these financial measures to facilitate internal and external comparisons to historical operating results and in making operating decisions. Additionally, they are utilized by the Board of Directors to evaluate management. The supplemental reporting measures do not represent net income or cash flow provided from operating activities as determined in accordance with U.S. GAAP and should not be considered as alternative measures of profitability or liquidity. Finally, the supplemental reporting measures, as defined by us, may not be comparable to similarly entitled items reported by other financial institutions or other companies. Please see the exhibits for reconciliations of our supplemental reporting measures.

Consolidated Balance Sheets (Unaudited)
Premier Financial Corp.
	June 30,			March 31,			December 31,			September 30,			June 30,
(in thousands)	2022			2022			2021			2021			2021
Assets
Cash and cash equivalents
Cash and amounts due from depositories	$	62,080		$	62,083		$	54,858		$	63,480		$	63,790
Interest-bearing deposits		72,314			91,683			106,708			51,614			67,718
		134,394			153,766			161,566			115,094			131,508
Available-for-sale, carried at fair value		1,140,466			1,219,365			1,206,260			1,250,087			1,279,128
Equity securities, carried at fair value		13,293			13,454			14,097			12,965			12,945
Securities investments		1,153,759			1,232,819			1,220,357			1,263,052			1,292,073
Loans (1)		5,890,823			5,388,331			5,296,168			5,269,566			5,348,400
Allowance for credit losses - loans		(67,074	)		(67,195	)		(66,468	)		(73,217	)		(71,367	)
Loans, net		5,823,749			5,321,136			5,229,700			5,196,349			5,277,033
Loans held for sale		145,092			153,498			162,947			178,490			199,070
Mortgage servicing rights		20,693			20,715			19,538			19,105			18,041
Accrued interest receivable		22,533			21,765			20,767			22,994			23,459
Federal Home Loan Bank stock		23,991			15,332			11,585			11,585			12,747
Bank Owned Life Insurance		168,746			167,763			166,767			166,866			145,919
Office properties and equipment		54,060			54,684			55,602			56,073			56,259
Real estate and other assets held for sale		462			253			171			261			45
Goodwill		317,948			317,948			317,948			317,948			317,948
Core deposit and other intangibles		21,311			22,691			24,129			25,612			27,140
Other assets		123,886			108,510			90,325			94,889			92,478
Total Assets	$	8,010,624		$	7,590,880		$	7,481,402		$	7,468,318		$	7,593,720
Liabilities and Stockholders’ Equity
Non-interest-bearing deposits	$	1,786,516		$	1,733,157		$	1,724,772		$	1,618,769		$	1,649,664
Interest-bearing deposits		4,729,828			4,584,078			4,557,279			4,629,889			4,641,795
Total deposits		6,516,344			6,317,235			6,282,051			6,248,658			6,291,459
Advances from FHLB		380,000			150,000			-			-			105,000
Notes payable and other interest-bearing liabilities		-			-			-			18,812			-
Subordinated debentures		85,039			85,008			84,976			84,944			84,913
Advance payments by borrowers		40,344			20,332			24,716			19,495			19,474
Reserve for credit losses - unfunded commitments		6,755			5,340			5,031			5,838			5,613
Other liabilities		80,995			69,669			61,132			58,702			59,558
Total Liabilities		7,109,477			6,647,584			6,457,906			6,436,449			6,566,017
Stockholders’ Equity
Preferred stock		-			-			-			-			-
Common stock, net		306			306			306			306			306
Additional paid-in-capital		690,905			691,350			691,132			690,783			689,785
Accumulated other comprehensive income (loss)		(126,754	)		(75,497	)		(3,428	)		1,609			10,953
Retained earnings		470,779			459,087			443,517			428,518			410,153
Treasury stock, at cost		(134,089	)		(131,950	)		(108,031	)		(89,347	)		(83,494	)
Total Stockholders’ Equity		901,147			943,296			1,023,496			1,031,869			1,027,703
Total Liabilities and Stockholders’ Equity	$	8,010,624		$	7,590,880		$	7,481,402		$	7,468,318		$	7,593,720
(1) Includes PPP loans of:	$	4,561		$	18,660		$	58,906		$	143,949		$	287,229

Consolidated Statements of Income (Unaudited)
Premier Financial Corp.
	Three Months Ended														Six Months Ended
(in thousands, except per share amounts)	6/30/22			3/31/22			12/31/21			9/30/21		6/30/21			6/30/22			6/30/21
Interest Income:
Loans	$	56,567		$	55,241		$	55,007		$	55,443	$	55,772		$	111,808		$	113,338
Investment securities		6,197			5,479			5,369			5,325		4,994			11,676			8,674
Interest-bearing deposits		120			46			56			33		42			166			108
FHLB stock dividends		174			59			58			60		56			233			115
Total interest income		63,058			60,825			60,490			60,861		60,864			123,883			122,235
Interest Expense:
Deposits		2,671			2,222			2,615			3,144		3,559			4,893			7,723
FHLB advances		527			13			-			11		12			540			12
Subordinated debentures		763			696			673			671		674			1,459			1,369
Notes Payable		1			-			-			-		-			1			-
Total interest expense		3,962			2,931			3,288			3,826		4,245			6,893			9,104
Net interest income		59,096			57,894			57,202			57,035		56,619			116,990			113,131
Provision (benefit) for credit losses - loans		5,151			626			2,816			1,594		(3,631	)		5,777			(11,145	)
Provision (benefit) for credit losses - unfunded commitments		1,415			309			(807	)		226		(288	)		1,724			263
Total provision (benefit) for credit losses		6,566			935			2,009			1,820		(3,919	)		7,501			(10,882	)
Net interest income after provision		52,530			56,959			55,193			55,215		60,538			109,489			124,013
Non-interest Income:
Service fees and other charges		6,676			6,000			6,351			6,067		6,282			12,676			11,751
Mortgage banking income		1,948			4,252			3,060			6,175		2,157			6,200			12,691
Gain (loss) on sale of available for sale securities		-			-			-			233		1,469			-			1,985
Gain (loss) on equity securities		(1,161	)		(643	)		1,132			20		(808	)		(1,804	)		802
Insurance commissions		4,334			4,639			3,379			3,461		4,059			8,973			8,940
Wealth management income		1,414			1,477			1,383			1,321		1,566			2,891			3,322
Income from Bank Owned Life Insurance		983			996			2,145			947		859			1,979			2,028
Other non-interest income		171			142			129			146		1,700			313			1,859
Total Non-interest Income		14,365			16,863			17,579			18,370		17,284			31,228			43,378
Non-interest Expense:
Compensation and benefits		22,334			25,541			24,247			23,355		21,046			47,875			43,044
Occupancy		3,494			3,700			3,859			3,693		3,837			7,194			7,949
FDIC insurance premium		802			593			781			695		522			1,395			1,420
Financial institutions tax		1,074			1,191			526			1,187		1,177			2,265			2,367
Data processing		3,442			3,335			3,447			3,387		3,334			6,777			6,716
Amortization of intangibles		1,380			1,438			1,483			1,528		1,575			2,818			3,197
Other non-interest expense		6,563			5,497			7,145			5,256		6,623			12,060			12,043
Total Non-interest Expense		39,089			41,295			41,488			39,101		38,114			80,384			76,736
Income before income taxes		27,806			32,527			31,284			34,484		39,708			60,333			90,655
Income tax expense		5,446			6,170			5,974			6,124		8,323			11,616			18,274
Net Income	$	22,360		$	26,357		$	25,310		$	28,360	$	31,385		$	48,717		$	72,381
Earnings per common share:
Basic	$	0.63		$	0.73		$	0.69		$	0.76	$	0.84		$	1.36		$	1.94
Diluted	$	0.63		$	0.73		$	0.69		$	0.76	$	0.84		$	1.36		$	1.94
Average Shares Outstanding:
Basic		35,560			35,978			36,740			37,100		37,276			35,768			37,274
Diluted		35,682			36,090			36,848			37,185		37,358			35,880			37,351

Premier Financial Corp.
Selected Quarterly Information
(dollars in thousands, except per share data)	2Q22			1Q22			4Q21			3Q21			2Q21			YTD 2022			YTD 2021
Summary of Operations
Tax-equivalent interest income (1)	$	63,283		$	61,054		$	60,740		$	61,117		$	61,134		$	124,336		$	122,742
Interest expense		3,962			2,931			3,288			3,826			4,245			6,893			9,104
Tax-equivalent net interest income (1)		59,321			58,123			57,452			57,291			56,889			117,443			113,638
Provision expense (benefit) for credit losses		6,566			935			2,009			1,820			(3,919	)		7,501			(10,882	)
Investment securities gains (losses)		(1,161	)		(643	)		1,132			253			661			(1,804	)		2,787
Non-interest income (ex securities gains/losses)		15,526			17,506			16,447			18,117			16,623			33,032			40,591
Non-interest expense		39,089			41,295			41,488			39,101			38,114			80,384			76,736
Income tax expense		5,446			6,170			5,974			6,124			8,323			11,616			18,274
Net income		22,360			26,357			25,310			28,360			31,385			48,717			72,381
Tax equivalent adjustment (1)		225			229			250			256			270			453			507
At Period End
Total assets	$	8,010,624		$	7,590,880		$	7,481,402		$	7,468,318		$	7,593,720
Goodwill and intangibles		339,259			340,639			342,077			343,560			345,088
Tangible assets (2)		7,671,365			7,250,241			7,139,325			7,124,758			7,248,632
Earning assets		7,218,905			6,881,663			6,797,765			6,774,307			6,920,008
Loans		5,890,823			5,388,331			5,296,168			5,269,566			5,348,400
Allowance for loan losses		67,074			67,195			66,468			73,217			71,367
Deposits		6,516,344			6,317,235			6,282,051			6,248,658			6,291,459
Stockholders’ equity		901,147			943,296			1,023,496			1,031,869			1,027,703
Stockholders’ equity / assets		11.25	%		12.43	%		13.68	%		13.82	%		13.53	%
Tangible equity (2)		561,888			602,657			681,419			688,309			682,615
Tangible equity / tangible assets		7.32	%		8.31	%		9.54	%		9.66	%		9.42	%
Average Balances
Total assets	$	7,742,550		$	7,541,414		$	7,510,397		$	7,529,100		$	7,549,531		$	7,626,888		$	7,444,791
Earning assets		7,051,661			6,754,862			6,736,250			6,773,021			6,806,275			6,904,082			6,709,348
Loans		5,667,853			5,382,825			5,356,113			5,416,696			5,495,782			5,526,127			5,562,379
Deposits and interest-bearing liabilities		6,706,250			6,415,483			6,386,341			6,422,455			6,454,731			6,561,669			6,365,441
Deposits		6,385,857			6,314,217			6,301,384			6,317,229			6,339,673			6,350,235			6,265,394
Stockholders’ equity		921,847			1,033,816			1,035,717			1,020,206			1,006,757			961,873			989,800
Goodwill and intangibles		339,932			341,353			342,853			344,331			345,972			340,639			346,810
Tangible equity (2)		581,915			692,463			692,864			675,875			660,785			621,234			642,990
Per Common Share Data
Net Income (Loss):
Basic	$	0.63		$	0.73		$	0.69		$	0.76		$	0.84		$	1.36		$	1.94
Diluted		0.63			0.73			0.69			0.76			0.84			1.36			1.94
Dividends Paid		0.30			0.30			0.28			0.27			0.26			0.60			0.50
Market Value:
High	$	30.13		$	32.52		$	34.00		$	32.72		$	33.97		$	32.52		$	35.90
Low		25.31			28.58			28.75			25.80			27.76			25.31			22.23
Close		25.35			30.33			30.91			31.84			28.41			30.91			28.41
Common Book Value		25.35			26.48			28.13			27.90			27.64
Tangible Common Book Value (2)		15.80			16.92			18.73			18.61			18.36
Shares outstanding, end of period (000s)		35,555			35,621			36,384			36,978			37,178
Performance Ratios (annualized)
Tax-equivalent net interest margin (1)		3.36	%		3.44	%		3.41	%		3.38	%		3.34	%		3.40	%		3.39	%
Return on average assets		1.16	%		1.42	%		1.34	%		1.49	%		1.67	%		1.29	%		1.96	%
Return on average equity		9.73	%		10.34	%		9.70	%		11.03	%		12.50	%		10.21	%		14.75	%
Return on average tangible equity		15.41	%		15.44	%		14.49	%		16.65	%		19.05	%		15.81	%		22.70	%
Efficiency ratio (3)		52.23	%		54.60	%		56.14	%		51.85	%		51.85	%		53.42	%		49.75	%
Effective tax rate		19.59	%		18.97	%		19.10	%		17.76	%		20.96	%		19.25	%		20.16	%
Common dividend payout ratio		47.62	%		41.10	%		40.58	%		35.53	%		30.95	%		44.12	%		25.77	%
(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) Tangible assets = total assets less the sum of goodwill and core deposit and other intangibles. Tangible equity = total stockholders' equity less the sum of goodwill, core deposit and other intangibles, and preferred stock. Tangible common book value = tangible equity divided by shares outstanding at the end of the period.
(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.

Premier Financial Corp.
Yield Analysis
(dollars in thousands)
	Three Months Ended															Six Months Ended
	6/30/22			3/31/22			12/31/21			9/30/21			6/30/21			6/30/22			6/30/21
Average Balances
Interest-earning assets:
Loans receivable (1)	$	5,667,853		$	5,382,825		$	5,356,113		$	5,416,696		$	5,495,782		$	5,526,127		$	5,562,379
Securities		1,288,073			1,250,321			1,245,096			1,273,148			1,193,363			1,269,301			1,009,695
Interest Bearing Deposits		76,401			109,757			123,456			71,276			106,025			92,987			125,732
FHLB stock		19,334			11,959			11,585			11,901			11,105			15,667			11,542
Total interest-earning assets		7,051,661			6,754,862			6,736,250			6,773,021			6,806,275			6,904,082			6,709,348
Non-interest-earning assets		690,889			786,552			774,147			756,079			743,256			722,806			735,443
Total assets	$	7,742,550		$	7,541,414		$	7,510,397		$	7,529,100		$	7,549,531		$	7,626,888		$	7,444,791
Deposits and Interest-bearing liabilities:
Interest bearing deposits	$	4,614,223		$	4,600,801		$	4,609,064		$	4,649,462		$	4,640,196		$	4,607,549		$	4,593,493
FHLB advances and other		234,945			16,278			-			20,098			30,165			126,215			15,166
Subordinated debentures		85,020			84,988			84,957			84,924			84,893			85,004			84,881
Notes payable		428			-			-			204			-			215			-
Total interest-bearing liabilities		4,934,616			4,702,067			4,694,021			4,754,688			4,755,254			4,818,983			4,693,540
Non-interest bearing deposits		1,771,634			1,713,416			1,692,320			1,667,767			1,699,477			1,742,686			1,671,901
Total including non-interest-bearing deposits		6,706,250			6,415,483			6,386,341			6,422,455			6,454,731			6,561,669			6,365,441
Other non-interest-bearing liabilities		114,453			92,115			88,339			86,439			88,043			103,346			89,550
Total liabilities		6,820,703			6,507,598			6,474,680			6,508,894			6,542,774			6,665,015			6,454,991
Stockholders' equity		921,847			1,033,816			1,035,717			1,020,206			1,006,757			961,873			989,800
Total liabilities and stockholders' equity	$	7,742,550		$	7,541,414		$	7,510,397		$	7,529,100		$	7,549,531		$	7,626,888		$	7,444,791
Average interest-earning assets to interest-bearing liabilities		143	%		144	%		144	%		142	%		143	%		143	%		143	%
Interest Income/Expense
Interest-earning assets:
Loans receivable (2)	$	56,573		$	55,248		$	55,013		$	55,444		$	55,786		$	111,821		$	113,366
Securities (2)		6,416			5,701			5,612			5,580			5,250			12,116			9,153
Interest Bearing Deposits		120			46			56			33			42			233			108
FHLB stock		174			59			59			60			56			166			115
Total interest-earning assets		63,283			61,054			60,740			61,117			61,134			124,336			122,742
Deposits and Interest-bearing liabilities:
Interest bearing deposits	$	2,671		$	2,222		$	2,615		$	3,144		$	3,559		$	4,893		$	7,723
FHLB advances and other		527			13			-			11			12			540			12
Subordinated debentures		763			696			673			671			674			1,459			1,369
Notes payable		1			-			-			-			-			1			-
Total interest-bearing liabilities		3,962			2,931			3,288			3,826			4,245			6,893			9,104
Non-interest bearing deposits		-			-			-			-			-			-			-
Total including non-interest-bearing deposits		3,962			2,931			3,288			3,826			4,245			6,893			9,104
Net interest income	$	59,321		$	58,123		$	57,452		$	57,291		$	56,889		$	117,443		$	113,638
Less: PPP income		(160	)		(3,641	)		(2,686	)		(2,887	)		(3,950	)		(3,801	)		(8,971	)
Less: Acquisition marks accretion		(706	)		(737	)		(1,595	)		(879	)		(1,641	)		(1,443	)		(3,395	)
Core net interest income	$	58,455		$	53,745		$	53,171		$	53,525		$	51,298		$	112,199		$	101,272
Average Rates (3)
Interest-earning assets:
Loans receivable		3.99	%		4.11	%		4.11	%		4.09	%		4.06	%		4.05	%		4.08	%
Securities (4)		1.99	%		1.82	%		1.80	%		1.75	%		1.76	%		1.91	%		1.81	%
Interest Bearing Deposits		0.63	%		0.17	%		0.18	%		0.19	%		0.16	%		0.50	%		0.17	%
FHLB stock		3.60	%		1.97	%		2.04	%		2.02	%		2.02	%		2.12	%		1.99	%
Total interest-earning assets		3.59	%		3.62	%		3.61	%		3.61	%		3.59	%		3.60	%		3.66	%
Deposits and Interest-bearing liabilities:
Interest bearing deposits		0.23	%		0.19	%		0.23	%		0.27	%		0.31	%		0.21	%		0.34	%
FHLB advances and other		0.90	%		0.32	%		0.00	%		0.22	%		0.16	%		0.86	%		0.16	%
Subordinated debentures		3.59	%		3.28	%		3.17	%		3.16	%		3.18	%		3.43	%		3.23	%
Notes payable		0.93	%		-			-			0.75	%		-			0.93	%		-
Total interest-bearing liabilities		0.32	%		0.25	%		0.28	%		0.32	%		0.36	%		0.29	%		0.39	%
Non-interest bearing deposits		-			-			-			-			-			-			-
Total including non-interest-bearing deposits		0.24	%		0.18	%		0.21	%		0.24	%		0.26	%		0.21	%		0.29	%
Net interest spread		3.27	%		3.37	%		3.33	%		3.29	%		3.23	%		3.31	%		3.27	%
Net interest margin (5)		3.36	%		3.44	%		3.41	%		3.38	%		3.34	%		3.40	%		3.39	%
Core net interest margin (5)		3.32	%		3.20	%		3.21	%		3.27	%		3.20	%		3.26	%		3.22	%
(1) Includes average PPP loans of:	$	12,966		$	32,853		$	101,804		$	219,366		$	378,545		$	22,855		$	406,826
(2) 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%.
(3) Annualized.
(4) Securities yield = annualized interest income divided by the average balance of securities, excluding average unrealized gains/losses.
(5) Net interest margin is tax equivalent net interest income divided by average interest-earning assets. Core net interest margin represents net interest margin excluding PPP and acquisition marks accretion.

Premier Financial Corp.
Selected Quarterly Information
(dollars in thousands)	2Q22			1Q22			4Q21			3Q21			2Q21
Loan Portfolio Composition
One to four family residential real estate	$	1,382,202		$	1,222,057		$	1,167,466		$	1,129,877		$	1,138,433
Construction		1,093,695			883,712			862,815			885,586			830,822
Commercial real estate		2,655,730			2,495,469			2,450,349			2,389,759			2,405,653
Commercial		991,803			910,553			895,638			952,729			1,051,972
Home equity and improvement		266,144			261,176			264,354			264,140			261,842
Consumer finance		180,539			132,294			126,417			125,163			118,526
Total loans		6,570,113			5,905,261			5,767,039			5,747,254			5,807,248
Less:
Undisbursed loan funds		688,849			525,545			477,890			481,434			458,156
Deferred loan origination fees		(9,559	)		(8,615	)		(7,019	)		(3,746	)		692
Allowance for credit losses - loans		67,074			67,195			66,468			73,217			71,367
Net Loans	$	5,823,749		$	5,321,136		$	5,229,700		$	5,196,349		$	5,277,033
Loans held for sale	$	145,092		$	153,498		$	162,947		$	178,490		$	199,070
PPP loans	$	4,561		$	18,660		$	58,906		$	143,949		$	287,229
Core commercial loans (1)		3,962,562			3,647,783			3,550,385			3,461,893			3,424,698
Core residential loans (1)		1,612,550			1,473,301			1,452,034			1,449,165			1,455,867
Core loans (1)		5,886,262			5,369,671			5,237,262			5,125,617			5,061,171
Allowance for credit losses - loans
Beginning allowance	$	67,195		$	66,468		$	73,217		$	71,367		$	74,754
Provision (benefit) for credit losses - loans		5,151			626			2,816			1,594			(3,631	)
Net recoveries (charge-offs)		(5,272	)		101			(9,565	)		256			244
Ending allowance	$	67,074		$	67,195		$	66,468		$	73,217		$	71,367
Credit Quality
Total non-performing loans (2)	$	34,735		$	47,298		$	48,014		$	59,865		$	41,296
Real estate owned (REO)		462			253			171			261			45
Total non-performing assets (3)	$	35,197		$	47,551		$	48,185		$	60,126		$	41,341
Net charge-offs (recoveries)		5,272			(101	)		9,565			(256	)		(244	)
Restructured loans, accruing (4)		5,899			6,287			7,768			6,503			5,939
Allowance for credit losses - loans / loans		1.14	%		1.25	%		1.26	%		1.39	%		1.33	%
Allowance for credit losses - loans / non-performing assets		190.57	%		141.31	%		137.94	%		121.77	%		172.63	%
Allowance for credit losses - loans / non-performing loans		193.10	%		142.07	%		138.43	%		122.30	%		172.82	%
Non-performing assets / loans plus REO		0.60	%		0.88	%		0.91	%		1.14	%		0.77	%
Non-performing assets / total assets		0.44	%		0.63	%		0.64	%		0.81	%		0.54	%
Net charge-offs / average loans (annualized)		0.37	%		-0.01	%		0.71	%		-0.02	%		-0.02	%
Net charge-offs / average loans LTM		0.27	%		0.17	%		0.16	%		0.00	%		0.06	%
Deposit Balances
Non-interest-bearing demand deposits	$	1,786,516		$	1,733,157		$	1,724,772		$	1,618,769		$	1,649,664
Interest-bearing demand deposits and money market		3,106,306			3,029,260			2,952,705			2,962,032			2,890,769
Savings deposits		832,859			830,143			804,451			786,929			777,862
Retail time deposits less than $250		532,836			586,967			636,477			692,224			720,317
Retail time deposits greater than $250		257,827			137,708			163,646			188,704			252,847
Total deposits	$	6,516,344		$	6,317,235		$	6,282,051		$	6,248,658		$	6,291,459
(1) Core loans represents total loans excluding undisbursed loan funds, deferred loan origination fees and PPP loans. Core commercial loans represents total commercial real estate, commercial and commercial construction excluding commercial undisbursed loan funds, deferred loan origination fees and PPP loans. Core residential loans represents total loans held for sale, one to four family residential real estate and residential construction excluding residential undisbursed loan funds and deferred loan origination fees.
(2) Non-performing loans consist of non-accrual loans.
(3) Non-performing assets are non-performing loans plus real estate and other assets acquired by foreclosure or deed-in-lieu thereof.
(4) 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 Financial Corp.
Loan Delinquency Information
(dollars in thousands)	Total Balance		Current		30 to 89 days past due		% of Total		Non Accrual Loans		% of Total
June 30, 2022
One to four family residential real estate	$	1,382,202	$	1,367,037	$	7,176	0.5	%	$	7,989	0.6	%
Construction		1,093,695		1,093,695		-	0.0	%		-	0.0	%
Commercial real estate		2,655,730		2,641,216		1	0.0	%		14,513	0.5	%
Commercial		991,803		984,065		-	0.0	%		7,738	0.8	%
Home equity and improvement		266,144		261,576		1,943	0.7	%		2,625	1.0	%
Consumer finance		180,539		176,608		2,061	1.1	%		1,870	1.0	%
Total loans	$	6,570,113	$	6,524,197	$	11,181	0.2	%	$	34,735	0.5	%
March 31, 2022
One to four family residential real estate	$	1,222,057	$	1,206,560	$	3,843	0.3	%	$	11,654	1.0	%
Construction		883,712		883,712		-	0.0	%		-	0.0	%
Commercial real estate		2,495,469		2,480,656		181	0.0	%		14,632	0.6	%
Commercial		910,553		894,923		18	0.0	%		15,612	1.7	%
Home equity and improvement		261,176		256,667		1,333	0.5	%		3,176	1.2	%
Consumer finance		132,294		127,856		2,214	1.7	%		2,224	1.7	%
Total loans	$	5,905,261	$	5,850,374	$	7,589	0.1	%	$	47,298	0.8	%
June 30, 2021
One to four family residential real estate	$	1,138,433	$	1,122,060	$	5,757	0.5	%	$	10,616	0.9	%
Construction		830,822		830,242		580	0.1	%		-	0.0	%
Commercial real estate		2,405,653		2,388,082		53	0.0	%		17,518	0.7	%
Commercial		1,051,972		1,044,265		-	0.0	%		7,707	0.7	%
Home equity and improvement		261,842		256,259		1,955	0.7	%		3,628	1.4	%
Consumer finance		118,526		115,169		1,530	1.3	%		1,827	1.5	%
Total loans	$	5,807,248	$	5,756,077	$	9,875	0.2	%	$	41,296	0.7	%
Loan Risk Ratings Information
(dollars in thousands)	Total Balance		Pass Rated		Special Mention		% of Total		Classified		% of Total
June 30, 2022
One to four family residential real estate	$	1,370,167	$	1,361,875	$	1,244	0.1	%	$	7,048	0.5	%
Construction		1,093,695		1,093,695		-	0.0	%		-	0.0	%
Commercial real estate		2,654,003		2,551,971		77,224	2.9	%		24,808	0.9	%
Commercial		984,972		956,229		21,428	2.2	%		7,315	0.7	%
Home equity and improvement		263,330		261,530		-	0.0	%		1,800	0.7	%
Consumer finance		180,183		178,346		-	0.0	%		1,837	1.0	%
PCD loans		23,763		17,632		95	0.4	%		6,036	25.4	%
Total loans	$	6,570,113	$	6,421,278	$	99,991	1.5	%	$	48,844	0.7	%
March 31, 2022
One to four family residential real estate	$	1,209,537	$	1,198,311	$	1,295	0.1	%	$	9,931	0.8	%
Construction		883,712		883,712		-	0.0	%		-	0.0	%
Commercial real estate		2,492,324		2,373,111		93,550	3.8	%		25,663	1.0	%
Commercial		901,957		869,615		20,558	2.3	%		11,784	1.3	%
Home equity and improvement		258,041		255,883		-	0.0	%		2,158	0.8	%
Consumer finance		131,846		129,747		-	0.0	%		2,099	1.6	%
PCD loans		27,844		19,110		98	0.4	%		8,636	31.0	%
Total loans	$	5,905,261	$	5,729,489	$	115,501	2.0	%	$	60,271	1.0	%
June 30, 2021
One to four family residential real estate	$	1,125,097	$	1,114,219	$	1,117	0.1	%	$	9,761	0.9	%
Construction		830,822		815,429		15,393	1.9	%		-	0.0	%
Commercial real estate		2,393,591		2,217,858		132,099	5.5	%		43,634	1.8	%
Commercial		1,038,059		991,021		24,898	2.4	%		22,140	2.1	%
Home equity and improvement		257,618		255,497		-	0.0	%		2,121	0.8	%
Consumer finance		117,764		116,137		-	0.0	%		1,627	1.4	%
PCD 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	%

Premier Financial Corp.
(dollars in thousands)
	As of and for the three months ended															Six months ended
Mortgage Banking Summary	6/30/22			3/31/22			12/31/21			9/30/21			6/30/21			6/30/22			6/30/21
Revenue from sales and servicing of mortgage loans:
Mortgage banking gains, net	$	1,166		$	2,543		$	2,774		$	5,353		$	2,670		$	3,710		$	8,310
Mortgage loan servicing revenue (expense):
Mortgage loan servicing revenue		1,862			1,879			1,909			1,861			1,887			3,741			3,805
Amortization of mortgage servicing rights		(1,375	)		(1,403	)		(1,774	)		(1,822	)		(1,953	)		(2,778	)		(4,297	)
Mortgage servicing rights valuation adjustments		295			1,233			151			783			(447	)		1,527			4,873
		782			1,709			286			822			(513	)		2,490			4,381
Total revenue from sale/servicing of mortgage loans	$	1,948		$	4,252		$	3,060		$	6,175		$	2,157		$	6,200		$	12,691
Mortgage servicing rights:
Balance at beginning of period	$	22,189		$	22,244		$	21,963		$	21,682		$	21,696		$	22,244		$	21,666
Loans sold, servicing retained		1,058			1,348			2,056			2,103			1,938			2,407			4,312
Mortgage servicing rights acquired		-			-			-			-			-			-			-
Amortization		(1,375	)		(1,403	)		(1,774	)		(1,822	)		(1,953	)		(2,778	)		(4,297	)
Balance at end of period		21,872			22,189			22,245			21,963			21,681			21,873			21,681
Valuation allowance:
Balance at beginning of period		(1,474	)		(2,707	)		(2,858	)		(3,641	)		(3,193	)		(2,707	)		(8,513	)
Impairment recovery (charges)		295			1,233			151			783			(447	)		1,527			4,873
Balance at end of period		(1,179	)		(1,474	)		(2,707	)		(2,858	)		(3,640	)		(1,180	)		(3,640	)
Net carrying value at end of period	$	20,693		$	20,715		$	19,538		$	19,105		$	18,041		$	20,693		$	18,041
Allowance Summary
Total loans	$	5,890,823		$	5,388,331		$	5,296,168		$	5,269,566		$	5,348,400
Less: PPP loans		(4,561	)		(18,660	)		(58,906	)		(143,949	)		(287,229	)
Total loans ex PPP	$	5,886,262		$	5,369,671		$	5,237,262		$	5,125,617		$	5,061,171
Allowance for credit losses (ACL)	$	67,074		$	67,195		$	66,468		$	73,217		$	71,367
Add: Unaccreted purchase accounting marks		3,924			4,652			5,418			7,109			8,003
Adjusted ACL	$	70,998		$	71,847		$	71,886		$	80,326		$	79,370
ACL/Loans		1.14	%		1.25	%		1.26	%		1.39	%		1.33	%
Adjusted ACL/Loans ex PPP		1.21	%		1.34	%		1.37	%		1.57	%		1.57	%