Premier Financial Corp. reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting a decline in net income and net interest income compared to the same periods in 2023. For the three months ended September 30, 2024, net income was $16.7 million, down from $24.7 million in the prior year, resulting in basic earnings per share of $0.46, compared to $0.69 in 2023. For the nine months, net income totaled $50.6 million, a significant decrease from $91.2 million in 2023.

Total interest income for the third quarter increased to $100.2 million from $94.9 million, while interest expense rose sharply to $50.0 million from $40.6 million, leading to a net interest income of $50.2 million, down from $54.3 million in the same quarter last year. The net interest margin also contracted to 2.50% from 2.73%. For the nine months, net interest income was $149.0 million, down from $164.5 million in 2023.

The company’s total assets increased to $8.7 billion as of September 30, 2024, up from $8.6 billion at the end of 2023, primarily due to a rise in securities, which reached $1.2 billion, compared to $946.7 million previously. However, loans receivable decreased to $6.5 billion from $6.7 billion, with notable declines in construction loans.

In terms of strategic developments, Premier Financial announced a definitive merger agreement with Wesbanco on July 26, 2024, which is expected to close in the first quarter of 2025. This stock-for-stock transaction will see Premier merge into Wesbanco, with shareholders receiving 0.80 shares of Wesbanco common stock for each share of Premier common stock. The merger is anticipated to impact the company’s operations and strategies moving forward.

Non-interest income for the third quarter was $12.6 million, down from $13.3 million in 2023, primarily due to a decrease in mortgage banking income, which fell to $1.2 million from $3.3 million. The company also reported an increase in non-interest expenses to $41.9 million, attributed to transaction costs related to the merger.

The allowance for credit losses (ACL) remained stable at $76.1 million, representing 1.16% of loans, while total non-performing loans increased to $82.0 million from $35.5 million at the end of 2023. The company continues to monitor its loan portfolio closely, particularly in light of the economic conditions and the upcoming merger.