Premier Financial reports Q1 EPS 50c, consensus 47c

Reports Q1 Net Interest Income $49.6M vs. $56.3M last year. “Premier’s overall financial performance for the first quarter was generally in line with our expectations,” said Gary Small, CEO. “Many elements of the business are off to a strong start, and there are clearly areas of opportunity to focus on. The commercial business got off to a slow start in January and February as clients seemed to pause to evaluate interest rate expectations, macroeconomic environmental factors, etc. Our clients showed a preference for using their cash on hand to finance capital expenditures and larger working capital needs versus traditional borrowing habits or drawing down on lines of credit. March saw a return to more typical commercial activity for the bank, with stronger new business numbers and an expanded business pipeline. Our consumer households continue to manage their finances effectively. Delinquencies declined for the quarter, net charge-off levels remain low, and average consumer deposits grew 7.5% annualized from December to March. Overall, we saw very positive average linked quarter deposit growth while average loan totals were flat on a linked quarter basis. We have projected modest loan and deposit growth for the year and remain confident in our ability to deliver on the full year growth objectives. Non-interest income was boosted by continued strong asset management revenue, and the residential mortgage team posted better than anticipated results. The ‘new build’ housing market, a strength for the organization, remains active and represented approximately 50% of our origination activity during the quarter. The organization’s quarterly expense run rate was favorable and we anticipate continued favorable expense performance over the course of the year. Credit costs were favorable for the quarter. Net charge-offs are running lower than our initial full year assumption. A strong economy, continued low unemployment, and modest loan growth targets combined with low delinquencies and non-performing asset levels support our expectation for continued favorable credit results.”