UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Item 7.01 Regulation FD Disclosure
Premier Financial Corp. (the “Company”) is disclosing the following update to certain COVID-19 related loan payment deferral information. The Company continues to monitor the effects of COVID-19 on the loan portfolio as well as all the associated risks to minimize any potential losses. In an effort to help its customers impacted by the COVID-19 pandemic, Premier Bank, the Company’s wholly-owned subsidiary (the “Bank”), has implemented hardship relief programs that, among other things, include loan payment deferrals that range from one to six months. While the Bank continues to receive requests from borrowers for payment deferrals on loans, the amount of loan payment deferrals declined from $482.7 million, or 8.8% of the total loan portfolio at September 30, 2020, to $206.7 million, or 3.7% of the total loan portfolio at October 31, 2020.
A breakdown of deferrals as of September 30, 2020, and updated as of October 31, 2020, is as follows (in thousands):
COVID-19 Deferrals Update
(unaudited, $ in thousands)
| As of September 30, 2020 | As of October 31, 2020 | |||||||
| Commercial loan deferrals | $ | 434,554 | $ | 176,672 | ||||
| % of commercial loans | 11.4 | % | 4.4 | % | ||||
| % of total loans | 7.9 | % | 3.2 | % | ||||
| Retail loan deferrals | $ | 48,187 | $ | 30,001 | ||||
| % of retail loans | 2.9 | % | 2.0 | % | ||||
| % of total loans | 0.9 | % | 0.5 | % | ||||
| Total loan deferrals | $ | 482,741 | $ | 206,673 | ||||
| % of total loans | 8.8 | % | 3.7 | % | ||||
COVID-19 Commercial Loans Update
(unaudited)
Commercial High Sensitivity Portfolio Update
| As of September 30, 2020 | As of October 31, 2020 | |||||||||||||||||||||||
| Industry: | % of Total Loans | % Balances Deferred | % of Classified Loans in Subsector | % of Total Loans | % Balances Deferred | % of Classified Loans in Subsector | ||||||||||||||||||
| Traveler Accommodation | 2.8 | % | 60.7 | % | 3.9 | % | 2.8 | % | 13.0 | % | 3.9 | % | ||||||||||||
| Food Service | 1.0 | % | 22.4 | % | 0.6 | % | 1.0 | % | 0.5 | % | 0.5 | % | ||||||||||||
| Sub-total | 3.7 | % | 51.0 | % | 3.1 | % | 3.8 | % | 9.7 | % | 3.0 | % | ||||||||||||
| Retail Trade and CRE | 9.4 | % | 17.7 | % | 1.3 | % | 9.4 | % | 8.1 | % | 1.3 | % | ||||||||||||
| Long-term Care | 1.9 | % | 10.8 | % | 11.0 | % | 1.9 | % | 2.2 | % | 10.9 | % | ||||||||||||
| Arts/Entertainment/Recreation | 0.4 | % | 37.8 | % | 2.5 | % | 0.4 | % | 32.2 | % | 2.6 | % | ||||||||||||
| Energy | 0.1 | % | 0.0 | % | 0.0 | % | 0.1 | % | 0.0 | % | 0.0 | % | ||||||||||||
| Total | 15.6 | % | 25.2 | % | 3.0 | % | 15.7 | % | 8.3 | % | 2.9 | % | ||||||||||||
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COVID-19 Commercial Loan Deferral Update
($ in thousands)
| Deferral Type: | September 30, 2020 Balance | New Deferrals | Net Payoffs/ Type Charges | Return to Pay (1) | October 31, 2020 Balance | October Extensions | ||||||||||||||||||
| Interest only 1-3 months | $ | 12,314 | $ | 0 | $ | (18 | ) | $ | (10,988 | ) | $ | 1,308 | $ | 0 | ||||||||||
| Interest only 4-5 months | 26,943 | 0 | (23 | ) | (4,294 | ) | 22,626 | 0 | ||||||||||||||||
| Interest only 6 months | 55,196 | 0 | 17,241 | (29,845 | ) | 42,592 | 17,472 | |||||||||||||||||
| Deferred payment 1-90 days | 57,262 | 824 | (16,917 | ) | (30,263 | ) | 10,906 | 0 | ||||||||||||||||
| Deferred payment 91-179 days | 6,497 | 0 | (2 | ) | (6,269 | ) | 226 | 0 | ||||||||||||||||
| Deferred payment 180 days | 276,342 | 0 | (320 | ) | (177,008 | ) | 99,014 | 0 | ||||||||||||||||
| Total | $ | 434,554 | $ | 824 | $ | (39 | ) | $ | (258,667 | ) | $ | 176,672 | $ | 17,472 | ||||||||||
(1) Represents approximately 93.4% of previously disclosed October 2020 scheduled expirations.
COVID-19 Commercial Loan Deferral Expirations as of October
31, 2020
($ in thousands)
| Month: | October 31, 2020 Balance | |||
| November | $ | 124,146 | ||
| December | 12,216 | |||
| January | 15,381 | |||
| February | 5,075 | |||
| March | 0 | |||
| April | 19,854 | |||
| Total | $ | 176,672 | ||
The information contained in this Item 7.01 of this Current Report is furnished herewith and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that section, nor shall it be deemed incorporated by reference into any filings made by the Company pursuant to the Securities Act, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
The Company does not intend to update this information and has no current intention of releasing similar information in the future.
Forward-Looking Statements
This Current Report contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act and the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the caption “Risk Factors” and elsewhere in our filings with the SEC, including, without limitation, the Annual Report on Form 10-K for the year ended December 31, 2019, and the Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2020, filed with the SEC. All information provided in this Report is as of the date hereof, and we undertake no duty to update this information unless required by law.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| PREMIER FINANCIAL CORP. | |||
| By: | /s/ Donald P. Hileman | ||
| Donald P. Hileman | |||
| Chief Executive Officer | |||
Date: November 6, 2020
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