10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2022

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____________ to _______________

Commission File Number: 0-26850

Premier Financial Corp.

(Exact Name of Registrant as Specified in its Charter)

Ohio	34-1803915
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
601 Clinton Street Defiance, OH	43512
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (419) 785-8700

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, Par Value $0.01 Per Share	PFC	The NASDAQ Stock Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of May 2, 2022, the registrant had 35,538,460 shares of common stock, $.01 par value per share, outstanding.

PREMIER FINANCIAL CORP.

INDEX

		Page Number
PART I - FINANCIAL INFORMATION
Item 1.	Consolidated Condensed Financial Statements (Unaudited):	2
	Consolidated Condensed Statements of Financial Condition – March 31, 2022 and December 31, 2021	2
	Consolidated Condensed Statements of Income Three months ended March 31, 2022 and 2021	3
	Consolidated Condensed Statements of Comprehensive Income – Three months ended March 31, 2022 and 2021	4
	Consolidated Condensed Statements of Changes in Stockholders’ Equity – Three months ended March 31, 2022 and 2021	5
	Consolidated Condensed Statements of Cash Flows – Three months ended March 31, 2022 and 2021	6
	Notes to Consolidated Condensed Financial Statements	7
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	39
Item 3	Quantitative and Qualitative Disclosures about Market Risk	52
Item 4	Controls and Procedures	53
PART II - OTHER INFORMATION:
Item 1	Legal Proceedings	54
Item 1A.	Risk Factors	54
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	54
Item 3	Defaults upon Senior Securities	54
Item 4	Mine Safety Disclosures	55
Item 5	Other Information	55
Item 6	Exhibits	56
	Signatures	56

1

PART I-FINANCIAL INFORMATION

PREMIER FINANCIAL CORP.

Consolidated Condensed Statements of Financial Condition

(UNAUDITED)

(Amounts in Thousands, except share and per share data)

	March 31, 2022			December 31, 2021
Assets
Cash and cash equivalents:
Cash and amounts due from depository institutions	$	62,083		$	54,858
Interest-bearing deposits		91,683			106,708
		153,766			161,566
Securities available-for-sale, carried at fair value		1,219,365			1,206,260
Equity securities, carried at fair value		13,454			14,097
Loans held for sale, carried at fair value		153,498			162,947
Loans receivable, net of allowance for credit losses of $67,195 at March 31, 2022 and $66,468 at December 31, 2021, respectively		5,321,136			5,229,700
Mortgage servicing rights		20,715			19,538
Accrued interest receivable		21,765			20,767
Federal Home Loan Bank stock		15,332			11,585
Bank owned life insurance		167,763			166,767
Premises and equipment		54,684			55,602
Real estate and other assets held for sale		253			171
Goodwill		317,948			317,948
Core deposit and other intangibles		22,691			24,129
Other assets		108,510			90,325
Total assets	$	7,590,880		$	7,481,402
Liabilities and stockholders’ equity
Liabilities:
Deposits	$	6,317,235		$	6,282,051
Advances from the Federal Home Loan Bank		150,000			—
Subordinated debentures		85,008			84,976
Advance payments by borrowers		20,332			24,716
Reserve for credit losses - unfunded commitments		5,340			5,031
Other liabilities		69,669			61,132
Total liabilities		6,647,584			6,457,906
Stockholders’ equity:
Preferred stock, $.01 par value per share: 37,000 shares authorized; no    shares issued		—		—
Preferred stock, $.01 par value per share: 4,963,000 shares authorized; no    shares issued	—			—
Common stock, $.01 par value per share: 50,000,000 shares authorized;    43,297,260 and 43,297,260  shares issued and 35,620,578 and 36,383,613    shares outstanding at March 31, 2022 and December 31, 2021, respectively		306			306
Additional paid-in capital		691,350			691,132
Accumulated other comprehensive income, net of tax of $(20,069) and $(912),    respectively		(75,497	)		(3,428	)
Retained earnings		459,087			443,517
Treasury stock, at cost, 7,676,682 shares at March 31, 2022 and 6,913,647      shares at December 31, 2021		(131,950	)		(108,031	)
Total stockholders’ equity		943,296			1,023,496
Total liabilities and stockholders’ equity	$	7,590,880		$	7,481,402

See accompanying notes.

2

PREMIER FINANCIAL CORP.

Consolidated Condensed Statements of Income

(UNAUDITED)

(Amounts in Thousands, except per share data)

	Three Months Ended March 31,
	2022			2021
Interest Income
Loans	$	55,241		$	57,565
Investment securities:
Taxable		4,610			2,782
Non-taxable		869			900
Interest-bearing deposits		46			66
FHLB stock dividends		59			59
Total interest income		60,825			61,372
Interest Expense
Deposits		2,222			4,164
FHLB advances and other		13			—
Subordinated debentures		696			695
Total interest expense		2,931			4,859
Net interest income		57,894			56,513
Credit loss expense (benefit) - loans and leases		626			(7,514	)
Credit loss expense - unfunded commitments		309			551
Net interest income after credit (benefit) loss expense		56,959			63,476
Non-interest Income
Service fees and other charges		6,000			5,469
Insurance commissions		4,639			4,882
Mortgage banking income		4,252			10,533
Gain on sale of securities available for sale		—			516
Gain (loss) on equity securities		(643	)		1,610
Wealth management income		1,477			1,757
Income from Bank Owned Life Insurance		996			1,168
Other non-interest income		150			340
Total non-interest income		16,871			26,275
Non-interest Expense
Compensation and benefits		25,541			21,997
Occupancy		3,700			4,112
FDIC insurance premium		593			898
Financial institutions tax		1,191			1,190
Data processing		3,335			3,382
Amortization of intangibles		1,438			1,623
Other non-interest expense		5,505			5,601
Total non-interest expense		41,303			38,803
Income before income taxes		32,527			50,948
Income tax expense		6,170			9,952
Net income	$	26,357		$	40,996
Earnings per common share
Basic	$	0.73		$	1.10
Diluted	$	0.73		$	1.10

See accompanying notes.

3

PREMIER FINANCIAL CORP.

Consolidated Condensed Statements of Comprehensive Income (Loss)

(UNAUDITED)

(Amounts in Thousands)

	Three Months Ended March 31,
	2022			2021
Net income	$	26,357		$	40,996
Other comprehensive (loss) income:
Unrealized (losses) gains on securities available for sale		(74,193	)		(19,112	)
Reclassification adjustment for securities gains (losses) included in net income		—			(516	)
Income tax effect		15,580			4,122
Net of tax amount		(58,613	)		(15,506	)
Unrealized gain (loss) on balance sheet swap		(16,241	)		—
Reclassification adjustment for cash flow hedge derivatives gain included in net income		(793	)
Income tax effect		3,578			—
Net of tax amount		(13,456	)		—
Total other comprehensive income (loss)		(72,069	)		(15,506	)
Comprehensive income (loss)	$	(45,712	)	$	25,490

See accompanying notes.

4

PREMIER FINANCIAL CORP.

Consolidated Statement of Changes in Stockholders’ Equity

(UNAUDITED)

(Amounts in Thousands, except share and per share data)

	Preferred Stock		Common Stock Shares			Common Stock		Additional Paid-In Capital			Accumulated Other Comprehensive Income			Retained Earnings			Treasury Stock			Total Stockholders Equity
Balance at January 1, 2022	$	—		36,383,613		$	306	$	691,132		$	(3,428	)	$	443,517		$	(108,031	)	$	1,023,496
Net income															26,357						26,357
Other comprehensive income (loss)												(72,069	)								(72,069	)
Deferred compensation plan				9,933					(14	)								14			—
Vesting of incentive plans				5,660					760									246			1,006
Restricted share issuance				19,936					(597	)								351			(246	)
Restricted share forfeitures				(5,398	)				69									(285	)		(216	)
Shares repurchased				(793,166	)													(24,245	)		(24,245	)
Common stock dividend payment ($0.30 per share)															(10,787	)					(10,787	)
Balance at March 31, 2022	$	—		35,620,578		$	306	$	691,350		$	(75,497	)	$	459,087		$	(131,950	)	$	943,296

	Preferred Stock		Common Stock Shares			Common Stock		Additional Paid-In Capital			Accumulated Other Comprehensive Income			Retained Earnings			Treasury Stock			Total Stockholders Equity
Balance at January 1, 2021	$	—		37,291,480		$	306	$	689,390		$	15,004		$	356,414		$	(78,838	)	$	982,276
Net income (loss)															40,996						40,996
Other comprehensive income (loss)												(15,506	)								(15,506	)
Deferred compensation plan				7,911					51									(51	)		—
Stock based compensation expenses									551												551
Vesting of incentive plans				6,124					(82	)								82			—
Shares issued under stock option plan				600														8			8
Restricted share issuance				13,708					(183	)								183			—
Restricted share forfeitures				(5,779	)				20									(138	)		(118	)
Shares repurchased				(39,200	)													(1,078	)		(1,078	)
Common stock dividend payment ($0.24 per share)															(8,943	)					(8,943	)
Balance at March 31, 2021	$	—		37,274,844		$	306	$	689,747		$	(502	)	$	388,467		$	(79,832	)	$	998,186

See accompanying notes.

5

PREMIER FINANCIAL CORP.

Consolidated Condensed Statements of Cash Flows

(UNAUDITED)

(Amounts in Thousands)

	Three Months Ended March 31,
	2022			2021
Operating Activities
Net income	$	26,357		$	40,996
Items not requiring (providing) cash:
Credit loss expense (benefit)		935			(6,963	)
Depreciation		1,466			1,647
Amortization of premium and discounts on loans, securities, deposits and debt obligations		1,882			143
Amortization of mortgage servicing rights, net of impairment charges/recoveries		170			(2,976	)
Amortization of intangibles		1,438			1,623
Change in deferred taxes		193			—
Proceeds from the sale of loans held for sale		122,952			258,544
Originations of loans held for sale		(112,308	)		(249,607	)
Mortgage banking gain, net		(2,543	)		(5,640	)
Loss (gain) on sale / write-down of real estate and other assets held for sale		(6	)		6
Loss (gain) on sale of available for sale securities		—			(516	)
Loss (gain) on equity securities		643			(1,610	)
Stock based compensation expense		760			551
Restricted stock forfeitures for taxes and option exercises		(216	)		(110	)
Income from bank owned life insurance		(996	)		(1,168	)
Changes in:
Accrued interest receivable and other assets		(20,838	)		(9,833	)
Other liabilities		12,124			(744	)
Net cash provided by (used by) operating activities		32,013			24,343
Investing Activities
Proceeds from maturities, calls and pay-downs of available-for-sale securities		32,299			41,123
Proceeds from sale of available-for-sale securities		—			22,380
Proceeds from sale of premises and equipment, real estate and other assets held for sale		44			117
Purchases of available-for-sale securities		(122,459	)		(267,079	)
Purchases of equity securities		—			(11,053	)
Net change in Federal Home Loan Bank stock		(3,747	)		6,698
Purchases of premises and equipment, net		(548	)		(120	)
Proceeds from bank owned life insurance		—			892
Net (decrease) increase in loans receivable		(91,416	)		33,669
Net cash used by investing activities		(185,827	)		(173,373	)
Financing Activities
Net increase in deposits and advance payments by borrowers		31,046			303,532
Net change in Federal Home Loan Bank advances		150,000			—
Net cash paid for repurchase of common stock		(24,245	)		(1,078	)
Cash dividends paid on common stock		(10,787	)		(8,943	)
Net cash provided by financing activities		146,014			293,511
Increase (decrease) in cash and cash equivalents		(7,800	)		144,481
Cash and cash equivalents at beginning of period		161,566			159,266
Cash and cash equivalents at end of period	$	153,766		$	303,747
Supplemental cash flow information:
Interest paid	$	3,430		$	5,425
Income taxes paid		—			—
Initial recognition of right-of-use asset		—			500
Initial recognition of lease liability		—			500
Transfers from loans to real estate and other assets held for sale		—			54

See accompanying notes.

6

PREMIER FINANCIAL CORP.

Notes to Consolidated Condensed Financial Statements (UNAUDITED)

March 31, 2022 and 2021

1. Basis of Presentation

Premier Financial Corp. (“Premier” or the “Company”) is a bank holding company that conducts business through its wholly-owned subsidiaries, Premier Bank ("Bank"), First Insurance Group of the Midwest, Inc. (“First Insurance”), PFC Risk Management Inc. (“PFC Risk Management”) and PFC Capital, LLC (“PFC Capital”). All significant intercompany transactions and balances are eliminated in consolidation. Premier’s stock is traded on the NASDAQ Global Select Market under the ticker PFC.

The Bank is primarily engaged in community banking. It attracts deposits from the general public through its offices and website, and uses those and other available sources of funds to originate residential real estate loans, commercial real estate loans, commercial loans, home improvement and home equity loans and consumer loans. In addition, the Bank invests in U.S. Treasury and federal government agency obligations, obligations of states and political subdivisions, mortgage-backed securities that are issued by federal agencies, collateralized mortgage obligations (“CMOs”), and corporate bonds. The Bank’s deposits are insured by the Federal Deposit Insurance Corporation (“FDIC”). The Bank is a member of the Federal Home Loan Bank (“FHLB”) System.

PFC Capital was formed as an Ohio limited liability company in 2016 for the purpose of providing mezzanine funding for customers. Mezzanine loans are offered by PFC Capital to customers in the Company’s market area and are expected to be repaid from the cash flow from operations of the business.

First Insurance is an insurance agency that conducts business throughout Premier’s markets. First Insurance offers property and casualty insurance, life insurance and group health insurance.

PFC Risk Management is a wholly-owned insurance company subsidiary of the Company that insures the Company and its subsidiaries against certain risks unique to the operations of the Company and for which insurance may not be currently available or economically feasible in today’s insurance marketplace. PFC Risk Management pools resources with several other similar insurance company subsidiaries of financial institutions to help minimize the risk allocable to each participating insurer.

The consolidated condensed statement of financial condition at December 31, 2021, was derived from the audited financial statements at that date, which were included in Premier’s Annual Report on Form 10-K for the year ended December 31, 2021.

The accompanying consolidated condensed financial statements as of March 31, 2022, and for the three months ended March 31, 2022 and 2021 have been prepared by the Company without audit and do not include information or footnotes necessary for the complete presentation of financial condition, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States (“GAAP”). These consolidated condensed financial statements should be read in conjunction with the financial statements and notes thereto included in the 2021 Form 10-K. However, in the opinion of management, all adjustments, consisting of only normal recurring items, necessary for the fair presentation of the financial statements have been made. The results for the three months ended March 31, 2022, are not necessarily indicative of the results that may be expected for the entire year.

7

2. Significant Accounting Policies

Accounting Standards Update

ASU No. 2020-04: Reference Rate Reform – Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848): On March 12, 2020, the FASB issued Accounting Standards Update (ASU) 2020-4, "Reference Rate Reform (“ASC 848”): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." ASC 848 contains optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rates expected to be discontinued. The Company has formed a cross-functional project team to lead the transition from LIBOR to adoption of alternative reference rates which include Secured Overnight Financing Rate (“SOFR”). The Company identified loans that renewed prior to 2021 and began incorporating LIBOR fallback language into existing LIBOR loans. Additionally, management is utilizing the timeline guidance published by the Alternative Reference Rates Committee to develop and achieve internal milestones during this transitional period. Additionally, the Company has adhered to the International Swaps and Derivatives Association 2020 IBOR Fallbacks Protocol that was released on October 23, 2020. The Company discontinued the use of new LIBOR-based loans by December 31, 2021, according to regulatory guidelines. Legacy LIBOR-based loans will be transitioned to an alternative reference rate on or before June 30, 2023. The amendments in these updates are elective, are only available from March 12, 2020 until December 31, 2022 and their application did not have a material effect on the Company.

Accounting Standards not yet adopted

ASU No. 2022-02, Troubled Debt Restructurings and Vintage Disclosures: On March 30, 2022, the FASB issued Accounting Standards Update ("ASU") 2022-02, "Troubled Debt Restructurings and Vintage Disclosures" which will eliminate troubled debt restructuring ("TDR") accounting for entities that have adopted ASU 2016-13, the current expected credit loss ("CECL") model and will add new vintage disclosures for gross write-offs. The elimination of TDR accounting can be adopted either prospectively for loan modifications after adoption or on a modified retrospective basis that would result in a cumulative effect adjustment to retained earnings in the period of adoption. ASU 2022-02 is effective for the Company for fiscal years beginning after December 15, 2022. The Company can elect to early adopt a part or all of the update. The Company is currently assessing the impacts of adopting the guidance.

3. Fair Value

FASB ASC Topic 820, Fair Value Measurements, defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact.

8

FASB ASC Topic 820 requires the use of valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement cost). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on the best information available. In that regard, FASB ASC Topic 820 established a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows:

•Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

•Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by a correlation or other means.

•Level 3: Unobservable inputs for determining fair value of assets and liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities.

A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below.

Available-for-sale securities - Securities classified as available for sale are generally reported at fair value utilizing Level 2 inputs where the Company obtains fair value measurements from an independent pricing service that uses matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows and the bonds’ terms and conditions, among other things. Securities in Level 2 include U.S. federal government agencies, mortgage-backed securities, asset-backed securities, corporate bonds and municipal securities.

Equity securities – These securities are reported at fair value utilizing Level 1 inputs where the Company obtains fair value measurements from a broker.

Loans held for sale, carried at fair value – The Company has elected the fair value option for all loans held for sale originated after January 31, 2020.

The fair value of conventional loans held for sale is determined using the current 15 day forward contract price for either 15 or 30 year conventional mortgages (Level 2). The fair value of permanent construction loans held for sale is determined using the current 60 day forward contract price for 15 or 30 years conventional mortgages which is then adjusted for unobservable market data such as estimated fall out rates and estimated time from origination to completion of construction (Level 3).

9

Collateral dependent loans - Fair values for individually analyzed collateral dependent loans are generally based on appraisals obtained from licensed real estate appraisers and in certain circumstances consideration of offers obtained to purchase properties prior to foreclosure. Appraisals for commercial real estate generally use three methods to derive value: cost, sales or market comparison and income approach. The cost method bases value on the cost to replace the current property. Value of market comparison approach evaluates the sales price of similar properties in the same market area. The income approach considers net operating income generated by the property and an investor’s required return. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Comparable sales adjustments are based on known sales prices of similar type and similar use properties and duration of time that the property has been on the market to sell. Such adjustments made in the appraisal process are typically significant and result in a Level 3 classification of the inputs for determining fair value.

Real estate held for sale - Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are then reviewed monthly by members of the asset review committee for valuation changes and are accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals which may utilize a single valuation approach or a combination of approaches including cost, comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments may be significant and typically result in a Level 3 classification of the inputs for determining fair value.

Appraisals for both individually analyzed collateral-dependent loans and other real estate owned ("OREO") are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, a member of the Company’s asset quality or collections department reviews the assumptions and approaches utilized in the appraisal. Appraisal values are discounted from 0% to 30% to account for other factors that may impact the value of collateral. In determining the value of individually analyzed collateral dependent loans and OREO, significant unobservable inputs may be used, which include but are not limited to: physical condition of comparable properties sold, net operating income generated by the property and investor rates of return.

Mortgage servicing rights - On a quarterly basis, mortgage servicing rights are evaluated for impairment based upon the fair value of the rights as compared to the carrying amount. If the carrying amount of an individual tranche exceeds fair value, impairment is recorded on that tranche so that the servicing asset is carried at fair value. Fair value is determined at a tranche level based on a model that calculates the present value of estimated future net servicing income. The valuation model utilizes assumptions that market participants would use in estimating future net servicing income and are validated against available market data (Level 2).

Mortgage banking derivative - The fair value of mortgage banking derivatives are evaluated monthly based on derivative valuation models using quoted prices for similar assets adjusted for specific attributes of the commitments and other observable market data at the valuation date (Level 2).

Interest rate swaps – The Company periodically enters into interest rate swap agreements with its commercial customers who desire a fixed rate loan term that is longer than the Company is willing to extend. The Company then enters into a reciprocal swap agreement with a third party that offsets the interest rate risk from the interest rate swap extended to the customer. The interest rate swaps are derivative instruments which are carried at fair value on the statement of financial condition. The Company uses an independent third party to perform a market valuation analysis for both swap positions (Level 2).

10

The Company also enters into cash flow hedge derivative instruments to hedge the risk of variability in cash flows (future interest payments) attributable to changes in the contractually specified LIBOR benchmark interest rate on the Company’s floating rate loan pool. The Company uses an independent third party to perform a market valuation analysis for these derivatives (Level 2).

The following table summarizes the financial assets measured at fair value on a recurring basis segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

Assets and Liabilities Measured on a Recurring Basis

March 31, 2022	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(In Thousands)
Assets:
Available for sale securities:
Obligations of U.S. federal government corporations and         agencies	$	—	$	161,433	$	—	$	161,433
Mortgage-backed securities		—		200,824		—		200,824
Collateralized mortgage obligations		—		305,529		—		305,529
Asset-backed securities		—		213,097		—		213,097
Corporate bonds		—		72,719		—		72,719
Obligations of state and political subdivisions		—		265,764		—		265,764
Equity securities		13,454		—		—		13,454
Loans held for sale, at fair value		—		37,014		116,484		153,498
Interest rate swaps		—		2,338		—		2,338
Mortgage banking derivative		—		9,923		—		9,923
Liabilities:
Interest rate swaps		—		2,338		—		2,338
Cash flow hedge derivative		—		16,180		—		16,180

December 31, 2021	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(In Thousands)
Assets:
Available for sale securities:
Obligations of U.S. federal government corporations and   agencies	$	—	$	174,710	$	—	$	174,710
Mortgage-backed securities		—		206,751		—		206,751
Collateralized mortgage obligations		—		260,168		—		260,168
Asset-backed securities		—		220,536		—		220,536
Corporate bonds		—		70,893		—		70,893
Obligations of state and political subdivisions		—		273,202		—		273,202
Equity securities		14,097		—		—		14,097
Loans held for sale, at fair value		—		28,780		134,167		162,947
Interest rate swaps		—		1,287		—		1,287
Mortgage banking derivative		—		2,336		—		2,336
Liabilities:
Interest rate swaps		—		1,292		—		1,292

The table below presents a reconciliation of assets that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three month periods ended March 31, 2022 and 2021.

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There were no securities that were measured at Level 3 for the three month periods ended March 31, 2022 and 2021.

	Construction loans held for sale
	Three Months Ended March 31,
	2022			2021
Balance of recurring Level 3 assets at beginning of period	$	134,167		$	123,029
Total gains (losses) for the period
Included in change in fair value of loans held for sale		(13,459	)		(5,568	)
Originations		36,343			34,003
Sales		(40,567	)		(16,826	)
Balance of recurring Level 3 assets at end of period	$	116,484		$	134,638

For Level 3 assets and liabilities measured at fair value on a recurring basis, the significant unobservable inputs used in the fair value measurements were as follows:

March 31, 2022	Fair Value		Valuation Technique	Unobservable Inputs	Range of Inputs
			(Dollars in Thousands)
Construction loans held for sale	$	116,484	Quoted market price	Time discount using the 60 day forward contract	0.00% - 1.52%

December 31, 2021	Fair Value		Valuation Technique	Unobservable Inputs	Range of Inputs
			(Dollars in Thousands)
Construction loans held for sale	$	134,167	Quoted market price	Time discount using the 60 day forward contract	0.00% - 1.86%

The following table summarizes the financial assets measured at fair value on a non-recurring basis segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

Assets and Liabilities Measured on a Non-Recurring Basis

March 31, 2022	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(In Thousands)
Individually analyzed loans
Residential	$	—	$	—	$	16		16
Commercial real estate		—		—		3,218		3,218
Commercial		—		—		6,998		6,998
Total individually analyzed loans		—		—		10,232		10,232
Mortgage servicing rights		—		20,715		—		20,715

December 31, 2021	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(In Thousands)
Individually analyzed loans
Commercial real estate	$	—	$	—	$	2,749	$	2,749
Commercial		—		—		8,564		8,564
Total individually analyzed loans		—		—		11,313		11,313
Mortgage servicing rights		—		19,538		—		19,538

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For Level 3 assets and liabilities measured at fair value on a non-recurring basis as of March 31, 2022, the significant unobservable inputs used in the fair value measurements were as follows:

	Fair Value		Valuation Technique	Unobservable Inputs	Range of Inputs			Weighted Average
			(Dollars in Thousands)
Individually analyzed Loans-    Applies to loan classes with an    appraisal valuation	$	5,199	Appraisals which utilize sales comparison, net income and cost approach	Discounts for collection issues and changes in market conditions	20-50%				31.38	%
Individually analyzed Loans-    Applies to loan classes without    an appraisal valuation	$	5,033	Equitable Recoupment claim estimate	Discounts for collection issues		25	%		25.00	%

For Level 3 assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2021, the significant unobservable inputs used in the fair value measurements were as follows:

	Fair Value		Valuation Technique	Unobservable Inputs	Range of Inputs			Weighted Average
			(Dollars in Thousands)
Individually analyzed Loans-    Applies to loan classes with an    appraisal valuation	$	5,821	Appraisals which utilize sales comparison, net income and cost approach	Discounts for collection issues and changes in market conditions	20-50%				35.18	%
Individually analyzed Loans-    Applies to loan classes without    an appraisal valuation	$	5,492	Equitable Recoupment claim estimate	Discounts for collection issues		25	%		25.00	%

The Company has elected the fair value option for new applications accepted after January 31, 2020, and subsequently originated for residential mortgage and permanent construction loans held for sale. These loans are intended for sale and the Company believes that fair value is the best indicator of the resolution of these loans. Interest income is recorded based on the contractual terms of the loan and in accordance with the Company’s policies.

The aggregate fair value of the residential mortgage loans held for sale at March 31, 2022 and December 31, 2021 was $37.0 million and $28.8 million, respectively, and they had a contractual balance of $36.1 million and $27.7 million, respectively, for these same periods. The difference between the fair value and the contractual balance is recorded in gains and losses on the sale of loans held for sale. For the three months ended March 31, 2022, $1.5 million was recorded in losses on the sale of loans held for sale for the change in fair value. For the three months ended March 31, 2021, $4.3 million was recorded in gains on the sale of loans held for sale for the change in fair value.

The aggregate fair value of the permanent construction loans held for sale at March 31, 2022 and December 31, 2021, was $116.5 million and $134.2 million, respectively, and they had a contractual balance of $120.8 million and $125.0 million, respectively, for these same periods. The difference between the fair value and the contractual balance is recorded in gains and losses on the sale of loans held for sale. For the three months ended March 31, 2022, $13.4 million, was recorded in losses on the sale of loans held for sale for the change in

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fair value. For the three months ended March 31, 2021, $5.6 million, was recorded in losses on the sale of loans held for sale for the change in fair value.

In accordance with FASB ASC Topic 825, the Fair Value Measurements tables are a comparative condensed consolidated statement of financial condition based on carrying amount and estimated fair values of financial instruments as of March 31, 2022, and December 31, 2021. Accordingly, the aggregate fair value amounts presented do not represent the underlying value to Premier.

Much of the information used to arrive at “fair value” is highly subjective and judgmental in nature and therefore the results may not be precise. Subjective factors include, among other things, estimated cash flows, risk characteristics and interest rates, all of which are subject to change. With the exception of investment securities, the Company’s financial instruments are not readily marketable and market prices do not exist. Since negotiated prices for the instruments, which are not readily marketable, depend greatly on the motivation of the buyer and seller, the amounts that will actually be realized or paid per settlement or maturity of these instruments could be significantly different.

The carrying amount of cash and cash equivalents, as a result of their short-term nature, is considered to be equal to fair value and are classified as Level 1.

It was not practicable to determine the fair value of FHLB stock due to restrictions placed on its transferability.

The Company’s loans were valued on an individual basis, with consideration given to the loans’ underlying characteristics, including account types, remaining terms (in months), annual interest rates or coupons, interest types, past delinquencies, timing of principal and interest payments, current market rates, loss exposures, and remaining balances. The model utilizes a discounted cash flow (“DCF”) approach to estimate the fair value of the loans using assumptions for the coupon rates, remaining maturities, prepayment speeds, projected default probabilities, losses given defaults, and estimates of prevailing discount rates. The DCF approach models the credit losses directly in the projected cash flows. The model applies various assumptions regarding credit, interest, and prepayment risks for the loans based on loan types, payment types and fixed or variable classifications. The estimated fair value of individually analyzed loans is based on the fair value of the collateral, less estimated cost to sell, or the present value of the loan’s expected future cash flows (discounted at the loan’s effective interest rate). All individually analyzed loans are classified as Level 3 within the valuation hierarchy.

The fair value of non-interest bearing deposits are considered equal to the amount payable on demand at the reporting date (i.e. carrying value) and are classified as Level 1. The fair value of savings, checking and certain money market accounts are equal to their carrying amounts and are a Level 1 classification. Fair values of fixed rate certificates of deposit are estimated using a DCF calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits resulting in a Level 2 classification.

The carrying value of notes payable, as a result of their short-term nature, is considered to be equal to fair value and are classified as Level 1.

The fair values of securities sold under repurchase agreements are equal to their carrying amounts resulting in a Level 1 classification. The carrying value of floating rate subordinated debentures was considered to be the carrying value as the debt is floating rate and can be prepaid at any time without penalty. The carrying value of fixed rate subordinated debt is estimated using a DCF calculation that applies interest rates currently being offered in the market to the expected maturity of the debt.

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FHLB advances with maturities greater than 90 days are valued based on a DCF analysis, using interest rates currently being quoted for similar characteristics and maturities resulting in a Level 2 classification. The cost or value of any call or put options is based on the estimated cost to settle the option at March 31, 2022.

The carrying value and estimated fair values of financial instruments at March 31, 2022 and December 31, 2021, were as follows:

			Fair Value Measurements at March 31, 2022
			(In Thousands)
	Carrying Value		Total		Level 1		Level 2		Level 3
Financial Assets:
Cash and cash equivalents	$	153,766	$	153,766	$	153,766	$	—	$	—
Securities available for sale		1,219,365		1,219,365		—		1,219,365		—
Equity securities		13,454		13,454		13,454		—		—
Accrued interest receivable		21,765		21,765		21,765		—		—
Federal Home Loan Bank Stock		15,332	N/A		N/A		N/A		N/A
Loans receivable, net		5,321,136		5,319,654		—		—		5,319,654
Loans held for sale, carried at fair value		153,498		153,498		—		37,014		116,484
Financial Liabilities:
Deposits	$	6,317,235	$	6,306,616	$	5,592,560	$	714,056	$	—
Advances from Federal Home Loan Bank		150,000		150,000		—		150,000		—
Subordinated debentures		85,008		84,168		—		84,168		—

			Fair Value Measurements at December 31, 2021
			(In Thousands)
	Carrying Value		Total		Level 1		Level 2		Level 3
Financial Assets:
Cash and cash equivalents	$	161,566	$	161,566	$	161,566	$	—	$	—
Securities available for sale		1,206,260		1,206,260		—		1,206,260		—
Equity securities		14,097		14,097		14,097		—		—
Accrued interest receivable		20,767		20,767		20,767		—		—
Federal Home Loan Bank Stock		11,585	N/A		N/A		N/A		N/A
Loans receivable, net		5,229,700		5,265,689		—		—		5,265,689
Loans held for sale, carried at fair value		162,947		162,947		—		28,780		134,167
Financial Liabilities:
Deposits	$	6,282,051	$	6,280,336	$	5,481,928	$	798,408	$	—
Subordinated debentures		84,976		85,417		—		—		85,417

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4. Stock Compensation Plans

Premier has established equity based compensation plans for its directors and employees. On February 27, 2018, the Board adopted, and the shareholders approved at the 2018 Annual Shareholders Meeting, the Premier Financial Corp. 2018 Equity Incentive Plan (the “2018 Equity Plan”). The 2018 Equity Plan replaced all existing plans, although the Company’s former equity plans remain in existence to the extent there were outstanding grants thereunder at the time the 2018 Equity Plan was approved. In addition, as a result of the Merger, Premier assumed certain outstanding stock options granted under UCFC’s Amended and Restated 2007 Long-Term Incentive Plan (the “UCFC 2007 Plan”) and UCFC’s 2015 Long Term Incentive Plan, which has since been renamed as the “Premier Financial Corp. 2015 Long Term Incentive Plan” (the “2015 Plan”). Premier also assumed the 2015 Plan with respect to the available shares under the UCFC 2015 Plan as of the effective date of the Merger, with appropriate adjustments to the number of shares available to reflect the Merger. The stock options assumed from UCFC in the Merger became exercisable solely to purchase shares of Premier, with appropriate adjustments to the number of shares subject to the assumed stock options and the exercise price of such stock options and remain subject to the terms of the 2015 Plan. Besides certain options issued under the First Defiance Financial Corp. 2010 Equity Incentive Plan, all awards currently outstanding are issued under the 2018 Equity Plan or the 2015 Plan. The 2018 Equity Plan and the 2015 Plan were each amended and restated in February 2022 to align certain administrative components of the plans in addition to enhancing certain governance components. New awards will be made under either the 2018 Equity Plan or the 2015 Plan as the Company determines. The 2018 Equity Plan allows for issuance of up to 900,000 common shares through the award of options, performance stock units ("PSUs"), restricted stock awards ("RSAs"), restricted stock units ("RSUs"), stock appreciation rights ("SARs") or other stock-based awards. The 2015 Plan allows for the issuance of up to 1.2 million common shares, as adjusted for the Merger, through the award of options, RSAs, RSUs, and SARs.

The Company maintains a Short-Term Incentive Plan ("STIP"). Under the 2020, 2021 and 2022 STIPs, the participants can earn a cash payout. The final amount of benefits under the STIPs is determined as of December 31 of the same year and paid out in cash in the first quarter of the following year.

As of March 31, 2022, 35,661 options to acquire Premier shares were outstanding at option prices based on the market value of the underlying shares on the date the options were granted. All options expire ten years from the date of grant. Vested options of retirees expire on the earlier of the scheduled expiration date or one year after the retirement date.

The Company maintains Long-Term Equity Incentive Plans ("LTIP") for select members of management (the "Executive LTIP") and a Key Employee and Commercial Lender Plan (the "Key Plan").

Under the Executive LTIP, participants may earn between 20% to 50% of their salary for potential payout in the form of equity awards based on the achievement of certain corporate performance targets over a three-year period. The Company granted 80,794 PSUs to the participants in the 2021 Executive LTIP during the first quarter of 2022, which represents the maximum target award. The value of awards issued in 2021 and 2022 under the Executive LTIP will be determined individually at the end of each respective 36 month performance period ending December 31. The benefits earned under these LTIPs will be paid out in equity in the first quarter following the end of the performance period. The participants will receive all or a portion of the award if their employment is terminated by the Company without cause, by the participant in certain situations, or by death, disability or retirement.

Under the Key Plan, the participants are granted RSUs based upon the achievement of certain targets in the prior year. The participants can earn from 5% to 10% of their salary in RSUs that vest three years from the

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date of grant. The Company granted 19,612 in RSAs and 17,542 RSUs in the first quarter of 2022 and 2021, respectively, as a payout under the Key Plan.

In 2022, the Company also granted 324 discretionary RSAs that vest three years from the date of grant. The grants vest over a three year period. The fair value of all granted restricted shares was determined by the stock price at the date of the grant.

The fair value of each option award is estimated on the date of grant using the Black-Scholes model. Expected volatilities are based on historical volatilities of the Company’s common shares. The Company uses historical data to estimate option exercise and post-vesting termination behavior. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant.

There were no options granted during the three months ended March 31, 2022 or 2021.

Following is stock option activity under the plans during the three months ended March 31, 2022:

	Options Outstanding		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in 000’s)
Options outstanding, January 1, 2022		35,661	$	21.72
Forfeited or cancelled		—		—
Exercised		—		—
Granted		—		—
Options outstanding, March 31, 2022		35,661	$	21.72		4.09	$	310,597
Exercisable at March 31, 2022		35,661	$	21.72		4.09	$	310,597

Proceeds, related tax benefits realized from options exercised and intrinsic value of options exercised were as follows (in thousands):

	Three Months Ended March 31,				Three Months Ended March 31,
	2022		2021		2022		2021
Proceeds of options exercised	$	—	$	8	$	—	$	8
Related tax benefit recognized		—		—		—		—
Intrinsic value of options exercised		—		11		—		11

As of March 31, 2022, there was a de minimus amount of total unrecognized compensation costs related to unvested stock options granted under the Company’s equity plans. The cost is expected to be recognized over a weighted-average period of 1.0 month.

At March 31, 2022, a total of 332,251 RSAs were outstanding. Compensation expense is recognized over the performance or vesting period. Total expense of $34,000 and $1.0 million was recorded during each of the three months ended March 31, 2022 and 2021, respectively, and approximately $181,000 and $2.7 million is included within other liabilities at March 31, 2022 and December 31, 2021, respectively, related to the cash portion of the STIPs.

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	Performance Stock Units				Restricted Stock Units					Restricted Stock Awards
Unvested Shares	Shares		Weighted- Average Grant Date Fair Value		Shares			Weighted- Average Grant Date Fair Value		Shares			Weighted- Average Grant Date Fair Value
Unvested at January 1, 2022		161,674	$	28.36		51,773		$	28.44		58,260		$	29.71
Granted		80,794		30.65		—			—		19,936			30.66
Vested		—		—		(8,090	)		26.40		(27,580	)		26.93
Forfeited		—		—		(3,730	)		28.20		(786	)		31.84
Unvested at March 31, 2022		242,468	$	29.12		39,953		$	28.88		49,830		$	31.60

The maximum amount of compensation expense that may be earned for the PSUs at March 31, 2022, is approximately $6.9 million in the aggregate. However, the estimated expense that is expected to be earned as of March 31, 2022, is $4.6 million of which $1.7 million was unrecognized at March 31, 2022, and will be recognized over the remaining performance periods.

5. Dividends on Common Stock

Premier declared and paid a $0.30 per common stock dividend in the first quarter of 2022 and declared and paid a $0.24 per common stock dividend in the first quarter of 2021.

6. Earnings Per Common Share

Basic earnings per share are calculated using the two-class method. The two-class method is an earnings allocation formula under which earnings per share is calculated from common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings distributed and undistributed, are allocated to participating securities and common shares based on their respective rights to receive dividends. Unvested share-based payment awards that contain non-forfeitable rights to dividends are considered participating securities (i.e., unvested restricted stock), not subject to performance based measures.

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The following table sets forth the computation of basic and diluted earnings per common share:

	Three Months Ended March 31,
	2022		2021
	(In Thousands, except per share data)
Basic Earnings Per Share:
Net income available to common shareholders	$	26,357	$	40,996
Less: income allocated to participating securities		35		43
Net income allocated to common shareholders		26,322		40,953
Weighted average common shares outstanding including    participating securities		36,026		37,332
Less: Participating securities		48		39
Average common shares		35,978		37,293
Basic earnings per common share	$	0.73	$	1.10
Diluted Earnings Per Share:
Net income allocated to common shareholders	$	26,322	$	40,953
Weighted average common shares outstanding for basic earnings    per common share		35,978		37,293
Add: Dilutive effects of stock options and restricted stock units		112		64
Average shares and dilutive potential common shares		36,090		37,357
Diluted earnings per common share	$	0.73	$	1.10

There were 16,206 shares for the three months ended March 31, 2022 that were excluded from the diluted earnings per common share calculation. There were no shares for the three months ended March 31, 2021 that were excluded from the dilutive earnings per common share calculation as no shares were anti-dilutive.

7. Investment Securities

The following is a summary of available-for-sale securities:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Loss			Fair Value
	(In Thousands)
At March 31, 2022
Available-for-Sale Securities:
Obligations of U.S. government corporations and agencies	$	174,400	$	3	$	(12,970	)	$	161,433
Mortgage-backed securities		215,800		114		(15,090	)		200,824
Collateralized mortgage obligations		326,650		—		(21,122	)		305,528
Asset-backed securities		216,998		487		(4,388	)		213,097
Corporate bonds		74,395		158		(1,834	)		72,719
Obligations of state and political subdivisions		290,408		1,577		(26,221	)		265,764
Total Available-for-Sale	$	1,298,651	$	2,339	$	(81,625	)	$	1,219,365

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	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Loss			Fair Value
	(In Thousands)
At December 31, 2021
Available-for-sale
Obligations of U.S. government corporations and agencies	$	174,644	$	984	$	(918	)	$	174,710
Mortgage-backed securities		208,281		851		(2,381	)		206,751
Collateralized mortgage obligations		264,541		363		(4,736	)		260,168
Asset-backed securities		221,545		610		(1,619	)		220,536
Corporate bonds		70,008		1,160		(275	)		70,893
Obligations of state and political subdivisions		272,334		5,898		(5,030	)		273,202
Total Available-for-Sale	$	1,211,353	$	9,866	$	(14,959	)	$	1,206,260

The amortized cost and fair value of the investment securities portfolio at March 31, 2022, are shown below by contractual maturity. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. For purposes of the maturity table, mortgage-backed securities (“MBS”), CMOs and asset-backed securities (“ABS”), which are not due at a single maturity date, have not been allocated over the maturity groupings. These securities may mature earlier than their weighted-average contractual maturities because of principal prepayments.

	Available-for-Sale
	Amortized Cost		Fair Value
	(In Thousands)
Due in one year or less	$	3,230	$	3,235
Due after one year through five years		43,732		42,536
Due after five years through ten years		205,366		195,580
Due after ten years		286,875		258,565
MBS/CMO/ABS		759,448		719,449
	$	1,298,651	$	1,219,365

Investment securities with a carrying amount of $555.0 million and $564.4 million at March 31, 2022 and December 31, 2021, respectively, were pledged as collateral on public deposits.

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The following tables summarize Premier’s securities that were in an unrealized loss position at March 31, 2022, and December 31, 2021:

	Duration of Unrealized Loss Position
	Less than 12 Months					12 Months or Longer					Total
	Fair Value		Gross Unrealized Loss			Fair Value		Gross Unrealized Loss			Fair Value		Unrealized Loss
	(In Thousands)
At March 31, 2022
Available-for-sale securities:
Obligations of U.S. government corporations and agencies	$	152,407	$	(11,201	)	$	8,503	$	(1,769	)	$	160,910	$	(12,970	)
Mortgage-backed securities		134,953		(9,319	)		61,098		(5,771	)		196,051		(15,090	)
Collateralized mortgage obligations		300,681		(20,737	)		4,847		(385	)		305,528		(21,122	)
Asset-backed securities		167,305		(4,255	)		15,634		(133	)		182,939		(4,388	)
Corporate bonds		60,809		(1,786	)		1,212		(48	)		62,021		(1,834	)
Obligations of state and political subdivisions		125,688		(13,129	)		73,619		(13,092	)		199,307		(26,221	)
Total available-for-sale	$	941,843	$	(60,427	)	$	164,913	$	(21,198	)	$	1,106,756	$	(81,625	)

	Duration of Unrealized Loss Position
	Less than 12 Months					12 Months or Longer					Total
	Fair Value		Gross Unrealized Loss			Fair Value		Gross Unrealized Loss			Fair Value		Unrealized Loss
	(In Thousands)
At December 31, 2021
Available-for-sale securities:
Obligations of U.S. government corporations and agencies	$	73,810	$	(918	)	$	—	$	—		$	73,810	$	(918	)
Mortgage-backed securities-residential		167,379		(2,048	)		13,689		(333	)		181,068		(2,381	)
Collateralized mortgage obligations		222,134		(4,736	)		—		—			222,134		(4,736	)
Asset-backed securities		140,226		(1,589	)		2,705		(30	)		142,931		(1,619	)
Corporate bonds		24,173		(270	)		504		(5	)		24,677		(275	)
Obligations of state and political subdivisions		99,199		(3,355	)		34,548		(1,675	)		133,747		(5,030	)
Total available-for-sale	$	726,921	$	(12,916	)	$	51,446	$	(2,043	)	$	778,367	$	(14,959	)

The Company realized no gains from the sale of available-for-sale securities in the three month period ending March 31, 2022. For the three months ended March 31, 2021, the Company had $516,000 in realized gains from the sale of investment securities.

ASU 2016-13 makes targeted improvements to the accounting for credit losses on securities available- for-sale. The concept of other than-temporarily impaired has been replaced with the allowance for credit losses. Unlike securities held to maturity, securities available-for-sale are evaluated on an individual level and pooling of securities is not allowed.

21

Quarterly, the Company evaluates if any security has a fair value less than its amortized cost. Once these securities are identified, in order to determine whether a decline in fair value resulted from a credit loss or other factors, the Company performs further analysis as outlined below:

•Review the extent to which the fair value is less than the amortized cost and observe the security’s lowest credit rating as reported by third-party credit ratings companies.

•Any securities that are downgraded by a third party ratings company above would be subjected to additional analysis that may include, but is not limited to: changes in market interest rates, changes in securities credit ratings, security type, service area economic factors, financial performance of the issuer/or obligor of the underlying issue and third-party guarantee.

•If the Company determines that a credit loss exists, the credit portion of the allowance will be measured using a DCF analysis using the effective interest rate as of the security’s purchase date. The amount of credit loss the Company records will be limited to the amount by which the amortized cost exceeds the fair value. As of March 31, 2022, management had determined that no credit loss exists.

At March 31, 2022, and December 31, 2021, the Company held preferred and common stock of various bank holding companies totaling $13.4 million and $14.1 million, respectively. During the three months ended March 31, 2022, $643,000 of unrealized losses were recorded within gain (loss) on equity securities on the Consolidated Condensed Statements of Income. During the three months ended March 31, 2021, $1.6 million of unrealized gains were recorded within gain(loss) on equity securities on the Consolidated Condensed Statements of Income.

8. Loans

Loan segments have been identified by evaluating the portfolio based on collateral and credit risk characteristics. Loans receivable consist of the following:

	March 31, 2022			December 31, 2021
	(In Thousands)
Real Estate:
Residential	$	1,222,057		$	1,167,466
Commercial		2,495,469			2,450,349
Construction		883,712			862,815
		4,601,238			4,480,630
Other Loans:
Commercial		910,553			895,638
Home equity and improvement		261,176			264,354
Consumer finance		132,294			126,417
		1,304,023			1,286,409
Loans before deferred loan origination fees and costs		5,905,261			5,767,039
Deduct:
Undisbursed construction loan funds		(525,545	)		(477,890	)
Net deferred loan origination fees and costs		8,615			7,019
Allowance for credit losses		(67,195	)		(66,468	)
Total loans	$	5,321,136		$	5,229,700

22

The Company has responded to the pandemic in numerous ways, including by actively participating in the Paycheck Protection Program (“PPP”) and distributing $636.9 million to small businesses in our markets. As of March 31, 2022, the Company had $18.7 million in PPP loans, which remained unpaid and were included in commercial loans in the above loan table. As of December 31, 2021, the Company had $58.9 million in PPP loans.

The following table discloses allowance for credit loss (“ACL”) activity for the three months ended March 31, 2022 and 2021 by portfolio segment (in thousands):

Three Months Ended March 31, 2022	Residential Real Estate			Commercial Real Estate			Construction			Commercial			Home Equity and Improvement			Consumer Finance			Total
Beginning Allowance	$	12,029		$	32,399		$	3,004		$	13,410		$	4,221		$	1,405		$	66,468
Charge-Offs		(140	)		(7	)		—			(10	)		(29	)		(103	)		(289	)
Recoveries		81			59			—			102			34			114			390
Provisions		(330	)		1,750			(391	)		319			(307	)		(415	)		626
Ending Allowance	$	11,640		$	34,201		$	2,613		$	13,821		$	3,919		$	1,001		$	67,195

Three Months Ended March 31, 2021	Residential Real Estate			Commercial Real Estate			Construction		Commercial			Home Equity and Improvement			Consumer Finance			Total
Beginning Allowance	$	17,534		$	43,417		$	2,741	$	11,665		$	4,739		$	1,983		$	82,079
Charge-Offs		—			—			—		(70	)		(3	)		(36	)		(109	)
Recoveries		8			36			—		198			29			27			298
Provisions		(34	)		(8,181	)		35		398			416			(148	)		(7,514	)
Ending Allowance	$	17,508		$	35,272		$	2,776	$	12,191		$	5,181		$	1,826		$	74,754

The following table presents the amortized cost basis of collateral-dependent loans by class of loans and collateral type as of March 31, 2022 and December 31, 2021 (in thousands):

	March 31, 2022
	Real Estate		Equipment and Machinery		Inventory and Receivables		Vehicles		Total
Real Estate:
Residential	$	78	$	—	$	—	$	—	$	78
Commercial		17,592		—		—		—		17,592
Construction		—		—		—		—		—
Other Loans:
Commercial		1,573		—		13,711		21		15,305
Home equity and improvement		—		—		—		—		—
Consumer finance		—		—		—		—		—
Total	$	19,243	$	—	$	13,711	$	21	$	32,975

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	December 31, 2021
	Real Estate		Equipment and Machinery		Inventory and Receivables		Vehicles		Total
Real Estate:
Residential	$	226	$	—	$	—	$	—	$	226
Commercial		18,399		—		—		—		18,399
Construction		—		—		—		—		—
Other Loans:
Commercial		1,574		160		14,023		25		15,782
Home equity and improvement		—		—		—		—		—
Consumer finance		—		—		—		—		—
Total	$	20,199	$	160	$	14,023	$	25	$	34,407

Non-performing loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually analyzed loans. All loans greater than 90 days past due are placed on non-accrual status. The following table presents the current balance of the aggregate amounts of non-performing assets, comprised of non-performing loans and real estate owned as of the dates indicated:

	March 31, 2022		December 31, 2021
	(In Thousands)
Non-accrual loans with reserve	$	32,930	$	35,480
Non-accrual loans without reserve		14,368	$	12,534
Loans 90 days plus past due and still accruing		—		—
Total non-performing loans		47,298		48,014
Real estate and other assets held for sale		253		171
Total non-performing assets	$	47,551	$	48,185
Troubled debt restructuring, still accruing	$	6,287	$	7,768

The following table presents the aging of the amortized cost in past due and non-accrual loans as of March 31, 2022, by class of loans (in thousands):

	Current		30 - 59 days		60 - 89 days		90 + days		Total Past Due		Total Non- Accrual
Real Estate:
Residential	$	1,202,041	$	307	$	3,327	$	7,654	$	11,288	$	9,280
Commercial		2,486,865		549		6		8,059		8,614		14,423
Construction		358,167		—		—		—		—		—
Other Loans:
Commercial		890,418		10,371		—		936		11,307		11,386
Home equity and improvement		255,180		756		334		1,771		2,861		2,171
Consumer finance		129,659		1,530		598		1,959		4,087		2,100
PCD		21,924		173		703		5,044		5,920		7,938
Total Loans	$	5,344,254	$	13,686	$	4,968	$	25,423	$	44,077	$	47,298

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The following table presents the aging of the recorded investment in past due and non-accrual loans as of December 31, 2021, by class of loans (in thousands):

	Current		30 - 59 days		60 - 89 days		90 + days		Total Past Due		Total Non Accrual
Real Estate:
Residential	$	1,144,533	$	234	$	5,340	$	7,487	$	13,061	$	9,034
Commercial		2,439,552		96		847		7,168		8,111		14,621
Construction		383,136		43		1,746		—		1,789		—
Other Loans:
Commercial		884,025		42		35		867		944		11,531
Home equity and improvement		257,055		1,851		408		1,634		3,893		2,051
Consumer finance		124,073		1,112		819		1,728		3,659		1,873
PCD		25,111		225		1,005		5,996		7,226		8,904
Total Loans	$	5,257,485	$	3,603	$	10,200	$	24,880	$	38,683	$	48,014

Troubled Debt Restructurings

As of March 31, 2022, and December 31, 2021, the Company had a recorded investment in troubled debt restructurings (“TDRs”) of $10.6 million and $11.9 million, respectively. The Company allocated $358,000 and $378,000 of specific reserves to those loans at March 31, 2022, and December 31, 2021, respectively, and had committed to lend additional amounts totaling up to $319,000 and $348,000 at March 31, 2022, and December 31, 2021, respectively.

The Company had previously worked with borrowers that were impacted by the COVID-19 pandemic by providing modifications to include either interest only deferral or principal and interest deferral. These modifications ranged from one to nine months. As of March 31, 2022 and December 31, 2021, the Company had no active deferrals.

The Company offers various types of concessions when modifying a loan, however, forgiveness of principal is rarely granted. Each TDR is uniquely designed to meet the specific needs of the borrower. Commercial and industrial loans modified in a TDR often involve temporary interest-only payments, term extensions and converting revolving credit lines to term loans. Additional collateral or an additional guarantor is often requested when granting a concession. Commercial mortgage loans modified in a TDR often involve temporary interest-only payments, re-amortization of remaining debt in order to lower payments and sometimes reducing the interest rate lower than the current market rate. Residential mortgage loans modified in a TDR are comprised of loans where monthly payments are lowered, either through interest rate reductions or principal only payments for a period of time, to accommodate the borrowers’ financial needs, interest is capitalized into principal, or the term and amortization are extended. Home equity modifications are made infrequently and usually involve providing an interest rate that is lower than the borrower would be able to obtain due to credit issues. All retail loans where the borrower is in bankruptcy are classified as TDRs regardless of whether or not a concession is made.

Of the loans modified in a TDR as of March 31, 2022, $4.3 million were on non-accrual status and partial charge-offs have in some cases been taken against the outstanding balance. Loans modified as a TDR may have the financial effect of increasing the allowance associated with the loan. If the loan is determined to be collateral dependent, the estimated fair value of the collateral, less any selling costs is used to determine if there is a need for a specific allowance or charge-off. If the loan is determined to be cash flow dependent, the allowance is measured based on the present value of expected future cash flows discounted at the loan’s pre-modification effective interest rate.

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The following tables present loans by class modified as TDRs that occurred during the three months ended March 31, 2022 and 2021:

	Loans Modified as a TDR for the Three Months Ended March 31, 2022 ($ in thousands)
Troubled Debt Restructurings	Number of Loans		Recorded Investment (as of period end)
Real Estate:
Residential		1	$	252
Commercial		—		—
Construction		—		—
Other Loans:
Commercial		—		—
Home equity and improvement		—		—
Consumer finance		2		20
Total		3	$	272

The loans described above increased the ACL by $1,000 in the three months ended March 31, 2022.

	Loans Modified as a TDR for the Three Months Ended March 31, 2021 ($ in thousands)
Troubled Debt Restructurings	Number of Loans		Recorded Investment (as of period end)
Real Estate:
Residential		2	$	150
Commercial		—		—
Construction		—		—
Other Loans:
Commercial		3		709
Home equity and improvement		—		—
Consumer finance		—		—
Total		5	$	859

The loans described above increased the ACL by $6,000 in the three months ended March 31, 2021.

In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed on the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. There were no TDRs that subsequently defaulted as of March 31, 2022 or March 31, 2021.

Credit Quality Indicators

Loans are categorized into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. Loans are analyzed individually by classifying the loans by credit risk. This analysis includes all non-homogeneous loans, such as commercial and

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commercial real estate loans and certain homogenous mortgage, home equity and consumer loans. This analysis is performed on a quarterly basis. Premier uses the following definitions for risk ratings:

Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution's credit position at some future date.

Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. As of March 31, 2022, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows (in thousands):

Class	Unclassified		Special Mention		Substandard		Doubtful		Total classified		Total
Real Estate:
Residential	$	1,202,103	$	1,295	$	9,931	$	-	$	9,931	$	1,213,329
Commercial		2,376,266		93,550		25,663		—		25,663		2,495,479
Construction		358,167		—		—		—		—		358,167
Other Loans:
Commercial		869,383		20,558		11,784		—		11,784		901,725
Home equity and improvement		255,883		—		2,158		—		2,158		258,041
Consumer finance		131,647		—		2,099		—		2,099		133,746
PCD		19,110		98		8,636		—		8,636		27,844
Total Loans	$	5,212,559	$	115,501	$	60,271	$	—	$	60,271	$	5,388,331

As of December 31, 2021, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows (in thousands):

Class	Unclassified		Special Mention		Substandard		Doubtful		Total classified		Total
Real Estate:
Residential	$	1,146,212	$	1,316	$	10,066	$	-	$	10,066	$	1,157,594
Commercial		2,324,846		93,676		29,141		—		29,141		2,447,663
Construction		365,403		19,522		—		—		—		384,925
Other Loans:
Commercial		856,402		14,815		13,752		—		13,752		884,969
Home equity and improvement		258,914		—		2,034		—		2,034		260,948
Consumer finance		125,879		—		1,853		—		1,853		127,732
PCD		19,547		101		12,689		—		12,689		32,337
Total Loans	$	5,097,203	$	129,430	$	69,535	$	—	$	69,535	$	5,296,168

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The tables below present the amortized cost basis of loans by credit quality indicator and class of loans as of March 31, 2022 and December 31, 2021 (in thousands):

	Term of loans by origination
	2022		2021		2020		2019		2018		Prior		Revolving Loans		Total
As of March 31, 2022
Real Estate
Residential:
Risk Rating
Pass	$	87,717	$	247,594	$	355,860	$	104,958	$	59,789	$	344,704	$	1,481	$	1,202,103
Special Mention		—		—		187		37		—		158		913		1,295
Substandard		—		777		957		779		1,178		6,240		—		9,931
Doubtful		—		—		—		—		—		—		—		—
Total	$	87,717	$	248,371	$	357,004	$	105,774	$	60,967	$	351,102	$	2,394	$	1,213,329
Commercial:
Risk Rating
Pass	$	117,640	$	511,210	$	513,331	$	358,355	$	228,407	$	636,090	$	11,233	$	2,376,266
Special Mention		2,380		292		—		2,111		17,094		71,000		673		93,550
Substandard		—		195		559		4,788		4,946		14,949		226		25,663
Doubtful		—		—		—		—		—		—		—		—
Total	$	120,020	$	511,697	$	513,890	$	365,254	$	250,447	$	722,039	$	12,132	$	2,495,479
Construction:
Risk Rating
Pass	$	196,348	$	86,533	$	53,706	$	-	$	727	$	-	$	20,853	$	358,167
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—				—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total	$	196,348	$	86,533	$	53,706	$	-	$	727	$	-	$	20,853	$	358,167
Other Loans
Commercial:
Risk Rating
Pass	$	67,089	$	240,506	$	125,299	$	74,398	$	41,778	$	34,471	$	285,842	$	869,383
Special Mention		2,857		—		2,117		3,919		225		5,738		5,702		20,558
Substandard		—		123		10,347		22		249		216		827		11,784
Doubtful		—		—		—		—		—		—		—		—
Total	$	69,946	$	240,629	$	137,763	$	78,339	$	42,252	$	40,425	$	292,371	$	901,725
Home equity and Improvement:
Risk Rating
Pass	$	3,622	$	23,965	$	6,444	$	4,267	$	2,524	$	35,008	$	180,053	$	255,883
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		28		37		790		1,303		2,158
Doubtful		—		—		—		—		—		—		—		—
Total	$	3,622	$	23,965	$	6,444	$	4,295	$	2,561	$	35,798	$	181,356	$	258,041
Consumer Finance:
Risk Rating
Pass	$	21,501	$	44,590	$	23,257	$	19,959	$	7,877	$	5,528	$	8,935	$	131,647
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		187		980		717		125		86		4		2,099
Doubtful		—		—		—		—		—		—		—		—
Total	$	21,501	$	44,777	$	24,237	$	20,676	$	8,002	$	5,614	$	8,939	$	133,746
PCD:
Risk Rating
Pass	$	-	$	-	$	-	$	163	$	1,733	$	13,739	$	3,475	$	19,110
Special Mention		—		—		—		—		—		98		—		98
Substandard		—		—		—		53		26		5,854		2,703		8,636
Doubtful		—		—		—		—		—		—		—		—
Total	$	-	$	-	$	-	$	216	$	1,759	$	19,691	$	6,178	$	27,844

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	Term of loans by origination
	2020		2019		2018		2017		2016		Prior		Revolving Loans		Total
As of December 31, 2021
Real Estate
Residential:
Risk Rating
Pass	$	219,006	$	373,439	$	112,781	$	65,544	$	71,794	$	301,735	$	1,913	$	1,146,212
Special Mention		—		190		—		—		59		109		958		1,316
Substandard		465		780		1,198		1,006		2,095		4,522		—		10,066
Doubtful		—		—		—		—		—		—		—		—
Total	$	219,471	$	374,409	$	113,979	$	66,550	$	73,948	$	306,366	$	2,871	$	1,157,594
Commercial:
Risk Rating
Pass	$	514,333	$	493,575	$	388,117	$	230,734	$	237,712	$	451,113	$	9,262	$	2,324,846
Special Mention		294		5,349		5,533		11,055		49,993		20,662		790		93,676
Substandard		172		570		4,920		5,525		62		17,665		227		29,141
Doubtful		—		—		—		—		—		—		—		—
Total	$	514,799	$	499,494	$	398,570	$	247,314	$	287,767	$	489,440	$	10,279	$	2,447,663
Construction:
Risk Rating
Pass	$	198,221	$	100,606	$	55,707	$	10,039	$	685	$	145	$	-	$	365,403
Special Mention		—		12,500		—		5,996		1,026		—		—		19,522
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total	$	198,221	$	113,106	$	55,707	$	16,035	$	1,711	$	145	$	-	$	384,925
Other Loans
Commercial:
Risk Rating
Pass	$	293,644	$	132,703	$	84,668	$	47,421	$	24,269	$	17,038	$	256,659	$	856,402
Special Mention		—		2,180		4,094		272		1,264		4,663		2,342		14,815
Substandard		136		11,550		23		288		388		131		1,236		13,752
Doubtful		—		—		—		—		—		—		—		—
Total	$	293,780	$	146,433	$	88,785	$	47,981	$	25,921	$	21,832	$	260,237	$	884,969
Home equity and Improvement:
Risk Rating
Pass	$	24,707	$	6,870	$	4,867	$	2,879	$	5,534	$	31,317	$	182,740	$	258,914
Special Mention		—		—		—		—		—		—		—		—
Substandard		15		—		28		48		27		690		1,226		2,034
Doubtful		—		—		—		—		—		—		—		—
Total	$	24,722	$	6,870	$	4,895	$	2,927	$	5,561	$	32,007	$	183,966	$	260,948
Consumer Finance:
Risk Rating
Pass	$	50,202	$	25,866	$	23,000	$	9,643	$	4,313	$	2,769	$	10,086	$	125,879
Special Mention		—		—		—		—		—		—		—		—
Substandard		196		707		619		129		67		131		4		1,853
Doubtful		—		—		—		—		—		—		—		—
Total	$	50,398	$	26,573	$	23,619	$	9,772	$	4,380	$	2,900	$	10,090	$	127,732
PCD:
Risk Rating
Pass	$	-	$	-	$	170	$	1,753	$	1,860	$	12,496	$	3,268	$	19,547
Special Mention		—		—		—		—		—		101		—		101
Substandard		—		—		67		28		3,242		6,490		2,862		12,689
Doubtful		—		—		—		—		—		—		—		—
Total	$	-	$	-	$	237	$	1,781	$	5,102	$	19,087	$	6,130	$	32,337

Allowance for Credit Losses

The Company has adopted ASU 2016-13 (Topic 326 – Credit Losses) to calculate the ACL, which requires a projection of credit loss over the contract lifetime of the credit adjusted for prepayment tendencies. This valuation account is deducted from the loans amortized cost basis to present the net amount expected to be

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collected on the loan. The ACL is adjusted through the provision for credit losses and reduced by net charge offs of loans.

The credit loss estimation process involves procedures that consider the unique characteristics of the Company’s portfolio segments. These segments are further disaggregated into the loan pools for monitoring. When computing allowance levels, a model of risk characteristics, such as loss history and delinquency status, along with current conditions and a supportable forecast is used to determine credit loss assumptions.

The Company is generally utilizing two methodologies to analyze loan pools, DCF and probability of default/loss given default (“PD/LGD”).

A default can be triggered by one of several different asset quality factors including past due status, non-accrual status, TDR status or if the loan has had a charge-off. The PD/LGD utilizes charge off data from the Federal Financial Institutions Examination Council to construct a default rate. This default rate is further segmented based on the risk of the credit assigning a higher default rate to riskier credits.

The DCF methodology was selected as the most appropriate for loan segments with longer average lives and regular payment structures. The DCF model has two key components, the loss driver analysis combined with a cash flow analysis. The contractual cash flow is adjusted for PD/LGD and prepayment speed to establish a reserve level. The prepayment studies are updated quarterly by a third-party for each applicable pool. The Company estimates losses over an approximate one-year forecast period using Moody’s baseline economic forecasts, and then reverts to longer term historical loss experience over a three-year period.

The remaining life method was selected for the consumer direct loan segment since the pool contains loans with many different structures and payment streams and collateral. The weighted average remaining life uses an average annual charge-off rate applied to the contractual term, further adjusted for estimated prepayments to determine the unadjusted historical charge-off rate for the remaining balance of assets.

Portfolio Segments	Loan Pool	Methodology	Loss Drivers
Residential real estate	1-4 Family nonowner occupied	DCF	National unemployment
	1-4 Family owner occupied	DCF	National unemployment
Commercial real estate	Commercial real estate nonowner occupied	DCF	National unemployment
	Commercial real estate owner occupied	DCF	National unemployment
	Multi Family	DCF	National unemployment
	Agriculture Land	DCF	National unemployment
	Other commercial real estate	DCF	National unemployment
Construction secured by real estate	Construction Other	PD/LGD	Call report loss history
	Construction Residential	PD/LGD	Call report loss history
Commercial	Commercial working capital	PD/LGD	Call report loss history
	Agriculture production	PD/LGD	Call report loss history
	Other commercial	PD/LGD	Call report loss history
Home equity and improvement	Home equity and improvement	PD/LGD	Call report loss history
Consumer finance	Consumer direct	Remaining life	Call report loss history
	Consumer indirect	DCF	National unemployment

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According to the accounting standard, an entity may make an accounting policy election not to measure an allowance for credit losses for accrued interest receivable if the entity writes off the applicable accrued interest receivable balance in a timely manner. The Company has made the accounting policy election not to measure an allowance for credit losses for accrued interest receivables for all loan segments. Current policy dictates that a loan will be placed on nonaccrual status, with the current accrued interest receivable balance being written off, upon the loan being 90 days delinquent or when the loan is deemed to be collateral dependent and the collateral analysis shows less than 1.2 times discounted collateral coverage based on a current assessment of the value of the collateral.

In addition to the ASC Topic 326 requires the Company to establish a liability for anticipated credit losses for unfunded commitments. To accomplish this, the company must first establishes a loss expectation for extended (funded) commitments. This loss expectation, expressed as a ratio to the amortized cost basis, is then applied to the portion of unfunded commitments not considered unilaterally cancelable, and considered by the company’s management as likely to fund over the life of the instrument. At March 31, 2022, the Company had $1.5 billion in unfunded commitments and set aside $5.3 million in anticipated credit losses. This reserve is recorded in other liabilities as opposed to the ACL.

The determination of ACL is complex and the Company makes decisions on the effects of matters that are inherently uncertain. Evaluations of the loan portfolio and individual credits require certain estimates, assumptions and judgements as to the facts and circumstances related to particular situations or credits. There may be significant changes in the ACL in future periods determined by prevailing factors at that point in time along with future forecasts.

Purchased Credit Deteriorated Loans

Under ASU Topic 326, when loans are purchased with evidence of more than insignificant deterioration of credit, they are accounted for as PCD. PCD loans acquired in a transaction are marked to fair value and a mark on yield is recorded. In addition, an adjustment is made to the ACL for the expected loss on the acquisition date. These loans are assessed on a regular basis and subsequent adjustments to the ACL are recorded on the income statement. The outstanding balance and related allowance on these loans as of March 31, 2022 and December 31, 2021 is as follows (in thousands):

	As of March 31, 2022				As of December 31, 2021
	Loan Balance		ACL Balance		Loan Balance		ACL Balance
	(In Thousands)				(In Thousands)
Real Estate:
Residential	$	12,520	$	176	$	13,396	$	197
Commercial		3,146		51		5,878		151
Construction		—		—		—		—
		15,666		227		19,274		348
Other Loans:
Commercial		8,595		1,211		9,167		1,531
Home equity and improvement		3,135		139		3,405		154
Consumer finance		448		9		491		7
		12,178		1,359		13,063		1,692
Total	$	27,844	$	1,586	$	32,337	$	2,040

Foreclosure Proceedings

Consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure totaled $4.1 million as of March 31, 2022, and $3.3 million as of December 31, 2021.

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9. Mortgage Banking

Net revenues from the sales and servicing of mortgage loans consisted of the following:

	Three Months Ended March 31,
	2022			2021
	(In Thousands)
Mortgage banking gain, net	$	2,543		$	5,640
Mortgage loans servicing revenue (expense):
Mortgage loans servicing revenue		1,879			1,917
Amortization of mortgage servicing rights		(1,403	)		(2,344	)
Mortgage servicing rights valuation adjustments		1,233			5,320
		1,709			4,893
Net revenue from sale and servicing of mortgage loans	$	4,252		$	10,533

The unpaid principal balance of residential mortgage loans serviced for third parties was $2.94 billion at March 31, 2022, and December 31, 2021.

Activity for capitalized mortgage servicing rights and the related valuation allowance follows for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31,
	2022			2021
	(In Thousands)
Mortgage servicing assets:
Balance at beginning of period	$	22,244		$	21,666
Loans sold, servicing retained		1,348			2,374
Amortization		(1,403	)		(2,344	)
Carrying value before valuation allowance at end of period		22,189			21,696
Valuation allowance:
Balance at beginning of period		(2,707	)		(8,513	)
Impairment recovery (charges)		1,233			5,320
Balance at end of period		(1,474	)		(3,193	)
Net carrying value of MSRs at end of period	$	20,715		$	18,503
Fair value of MSRs at end of period	$	25,996		$	18,695

Amortization of mortgage servicing rights is computed based on payments and payoffs of the related mortgage loans serviced. Estimates of future amortization expense are not easily estimable.

The Company had no accrual for secondary market buy-back activity at March 31, 2022 or December 31, 2021 based on management’s estimate of potential losses from this activity. There was no expense or credit recognized in the three months ended March 31, 2022.

10. Leases

The Company’s lease agreements have maturity dates ranging from April 2022 to September 2044, some of which include options for multiple five and ten year extensions. The weighted average remaining life of the lease term for these leases was 13.72 years as of March 31, 2022 and 14.21 years as of December 31, 2021. The weighted average discount rate for leases was 2.55% as of March 31, 2022 and 2.57% as of December 31, 2021.

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The total operating lease costs were $542,000 and $664,000 for the three months ended March 31, 2022 and March 31, 2021, respectively. The right-of-use asset, included in other assets, was $15.6 million and $15.4 million at March 31, 2022 and December 31, 2021, respectively. The lease liabilities, included in other liabilities, were $16.3 million and $16.1 million as of March 31, 2022 and December 31, 2021, respectively.

Undiscounted cash flows included in lease liabilities have expected contractual payments as follows:

(in thousands)	March 31, 2022
Remainder of 2022	$	2,526
2023		2,023
2024		1,632
2025		1,408
2026		1,173
Thereafter		11,772
Total undiscounted minimum lease payments		20,534
Present value adjustment		(4,187	)
Total lease liabilities	$	16,347

11. Deposits

A summary of deposit balances is as follows:

	March 31, 2022		December 31, 2021
	(In Thousands)
Non-interest-bearing checking accounts	$	1,733,157	$	1,724,772
Interest-bearing checking and money market accounts		3,029,260		2,952,705
Savings deposits		830,143		804,451
Retail certificates of deposit less than $250,000		586,967		636,477
Retail certificates of deposit greater than $250,000		137,708		163,646
	$	6,317,235	$	6,282,051

12. Borrowings

The Company's junior subordinated debentures owed to unconsolidated subsidiary trusts and subordinated debentures are comprised of the following:

	March 31, 2022		December 31, 2021
	(In Thousands)
First Defiance Statutory Trust I due December 2035	$	20,619	$	20,619
First Defiance Statutory Trust II due June 2037	$	15,464	$	15,464
Junior subordinated debentures owed to unconsolidated subsidiary trusts	$	36,083	$	36,083
Subordinated debentures	$	48,925	$	48,893

At March 31, 2022, the Company had $150.0 million of outstanding FHLB advances with a maturity date in 2022. There were no outstanding FHLB advances at December 31, 2021.

In September 2020, the Company completed the issuance of $50.0 million aggregate principal amount, fixed-to-floating rate subordinated notes due September 30, 2030 in a private offering exempt from the registration requirements under the Securities Act of 1933, as amended. The notes carry a fixed rate of 4.0% for five years at which time they will convert to a floating rate based on the secured overnight borrowing rate, plus a spread of 388.5 basis points. The Company may, at its option, beginning September 30, 2025, redeem the notes,

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in whole or in part, from time to time, subject to certain conditions. The net proceeds from the sale were approximately $48.7 million, after deducting the estimated offering expenses. The Company intends to use the net proceeds for general corporate purposes, which may include, without limitation, providing capital to support its growth organically or through strategic acquisitions, repaying indebtedness, in financing investments, capital expenditures, repurchasing its common shares and for investments in the Bank as regulatory capital. The subordinated debentures are included in Total Capital under current regulatory guidelines and interpretations.

In March 2007, the Company sponsored an affiliated trust, First Defiance Statutory Trust II (“Trust Affiliate II”) that issued $15.0 million of Guaranteed Capital Trust Securities (“Trust Preferred Securities”). In connection with this transaction, the Company issued $15.5 million of Junior Subordinated Deferrable Interest Debentures (Subordinated Debentures) to Trust Affiliate II. The Company formed Trust Affiliate II for the purpose of issuing Trust Preferred Securities to third-party investors and investing the proceeds from the sale of these capital securities solely in Subordinated Debentures of the Company. The Subordinated Debentures held by Trust Affiliate II are the sole assets of that trust. The Company is not considered the primary beneficiary of Trust Affiliate II (variable interest entity), therefore the trust is not consolidated in the Company’s financial statements, but rather the subordinated debentures are shown as a liability. Distributions on the Trust Preferred Securities issued by Trust Affiliate II are payable quarterly at a variable rate equal to the three-month LIBOR rate plus 1.5%. The coupon rate payable on the Trust Preferred Securities issued by Trust Affiliate II was 2.33% as of March 31, 2022, and 1.70% as of December 31, 2021.

The Trust Preferred Securities issued by Trust Affiliate II are subject to mandatory redemption, in whole or part, upon repayment of the Subordinated Debentures. The Company has entered into an agreement that fully and unconditionally guarantees the Trust Preferred Securities subject to the terms of the guarantee. The Trust Preferred Securities and Subordinated Debentures mature on September 15, 2037, but can be redeemed at the Company’s option at any time now.

The Company also sponsored an affiliated trust, First Defiance Statutory Trust I (“Trust Affiliate I”) that issued $20.0 million of Trust Preferred Securities in 2005. In connection with this transaction, the Company issued $20.6 million of Subordinated Debentures to Trust Affiliate I. Trust Affiliate I was formed for the purpose of issuing Trust Preferred Securities to third-party investors and investing the proceeds from the sale of these capital securities solely in Subordinated Debentures of the Company. The Junior Debentures held by Trust Affiliate I are the sole assets of the trust. The Company is not considered the primary beneficiary of Trust Affiliate I (variable interest entity), therefore the trust is not consolidated in the Company’s financial statements, but rather the subordinated debentures are shown as a liability. Distributions on the Trust Preferred Securities issued by Trust Affiliate I are payable quarterly at a variable rate equal to the three-month LIBOR rate plus 1.38%. The coupon rate payable on the Trust Preferred Securities issued by Trust Affiliate I was 2.21% and 1.58% on March 31, 2022 and December 31, 2021, respectively.

The Trust Preferred Securities issued by Trust Affiliate I are subject to mandatory redemption, in whole or in part, upon repayment of the Subordinated Debentures. The Company has entered into an agreement that fully and unconditionally guarantees the Trust Preferred Securities subject to the terms of the guarantee. The Trust Preferred Securities and Subordinated Debentures mature on December 15, 2035, but can be redeemed at the Company’s option at any time now.

The Subordinated Debentures related to the Trust Preferred Securities may be included in Tier 1 capital (with certain limitations applicable) under current regulatory guidelines and interpretations.

Interest on both issues of Trust Preferred Securities may be deferred for a period of up to five years at the option of the issuer.

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13. Commitments, Guarantees and Contingent Liabilities

Loan commitments are made to accommodate the financial needs of Premier’s customers in the form of unfunded loans or unused lines of credit and result in market risk. Standby letters of credit commit the Company to make payments on behalf of customers when certain specified future events occur. They primarily are issued to facilitate customers’ trade transactions.

Both arrangements have credit risk, essentially the same as that involved in extending loans to customers, and are subject to the Company’s normal credit policies. Collateral (e.g., securities, receivables, inventory and equipment) is obtained based on a credit assessment of the customer.

The Company’s maximum obligation to extend credit for loan commitments (unfunded loans and unused lines of credit) and standby letters of credit outstanding as of the periods stated below were as follows (in thousands):

	March 31, 2022		December 31, 2021
Commitments to make loans	$	1,154,525	$	1,175,916
Unused lines of credit		1,007,302		626,348
Standby letters of credit		13,319		10,851
Total	$	2,175,146	$	1,813,115

Commitments to make loans are generally made for periods of 60 days or less.

14. Income Taxes

The Company and its subsidiaries are subject to U.S. federal income tax as well as income tax in the states of Indiana and West Virginia. The Company is no longer subject to examination by income taxing authorities for years before 2018. The Company also currently operates in the states of Ohio, Michigan and Pennsylvania which tax financial institutions based on their equity rather than their income.

The components of income tax expense (benefit) are as follows:

	For the Three Months Ended March 31,
	2022		2021
	(In Thousands)
Current:
Federal	$	5,814	$	6,362
State and local		163		163
Deferred		193		3,427
	$	6,170	$	9,952

The effective tax rates differ from federal statutory rate applied to income due to the following:

	For the Three Months Ended March 31,
	2022			2021
	(In Thousands)
Tax expense (benefit) at statutory rate (21%)	$	6,830		$	10,699
Increases (decreases) in taxes from:
State income tax - net of federal tax benefit		128			128
Tax exempt interest income, net of TEFRA		(186	)		(200	)
Bank owned life insurance		(209	)		(245	)
Captive insurance		(105	)		(90	)
Other		(288	)		(340	)
Totals	$	6,170		$	9,952

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15. Derivative Financial Instruments

At March 31, 2022, the Company had approximately $27.3 million of interest rate lock commitments and $337.0 million of forward sales of mortgage backed securities. These commitments are considered derivatives. The Company had $65.4 million of interest rate lock commitments and $305.0 million of forward commitments at December 31, 2021.

The fair value of these mortgage banking derivatives are reflected by a derivative asset recorded in other assets in the Consolidated Statements of Financial Condition. The table below provides data about the carrying values of these derivative instrument assets:

	March 31, 2022		December 31, 2021
	(In Thousands)
Derivatives not designated as hedging instruments
Mortgage Banking Derivatives	$	9,923	$	2,336

The table below provides data about the amount of gains and losses recognized in income on derivative instruments not designated as hedging instruments. The difference in derivative carrying value at March 31, 2022 and 2021 represents a fair value adjustment that runs through mortgage banking income.

	Three Months Ended March 31,
	2022		2021
	(In Thousands)
Derivatives not designated as hedging instruments
Mortgage Banking Derivatives – Gain (Loss)	$	7,587	$	4,124

Interest Rate Swaps

The Company maintains an interest rate protection program for commercial loan customers. Under this program, the Company provides a customer with a fixed rate loan while creating a variable rate asset for the Company by the customer entering into an interest rate swap with terms that match the loan. The Company offsets its risk exposure by entering into an offsetting interest rate swap with an unaffiliated institution. The Company had interest rate swaps associated with commercial loans with a notional value of $82.6 million and fair value of $2.3 million in other assets and $2.3 million in other liabilities at March 31, 2022. As of December 31, 2021, the Company had interest rate swaps associated with commercial loans with a notional value of $69.4 million and fair value of $1.3 million in other assets and $1.3 million in other liabilities. For the three months ended March 31, 2022 and 2021, $1,000 and $198,000, respectively, flowed through noninterest income.

Interest Rate Swap Designated as Cash Flow Hedge

In May 2021, the Company entered into derivative instruments designated as a cash flow hedge. For a derivative instrument that is designated and qualifies as a cash flow hedge, the change in fair value of the derivative instrument is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings.

An interest rate swap with notional amount totaling $250.0 million as of March 31, 2022 was designated as a cash flow hedge to hedge the risk of variability in cash flows (future interest receipts) attributable to changes in the contractually specified LIBOR benchmark interest rate on the Company’s floating rate loan pool. The gross aggregate fair value of the swap of $16.2 million is recorded in other liabilities in the unaudited Consolidated

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Balance Sheets at March 31, 2022, with changes in fair value recorded net of tax in other comprehensive income (loss). As of December 31, 2021, the gross aggregate fair value of the swap of $854,000 was recorded in other assets in the Consolidated Balance Sheets. A summary of the interest-rate swap designated as a cash flow hedge is presented below (dollars in thousands):

	March 31, 2022			December 31, 2021
Notional amount	$	250,000		$	250,000
Weighted average fixed receive rates		1.437	%		1.437	%
Weighted average variable 1-month LIBOR pay rates		0.438	%		0.089	%
Weighted average remaining maturity (in years)		9.0			9.3
Fair value	$	(16,180	)	$	854

16. Other Comprehensive (Loss) Income

The before and after tax amounts allocated to each component of other comprehensive income (loss) are presented in the table below. Reclassification adjustments related to securities available for sale are included in gains on sale of securities in the accompanying consolidated condensed statements of income.

	Before Tax Amount			Tax (Expense) Benefit		Net of Tax Amount
	(In Thousands)
Three months ended March 31, 2022:
Securities available for sale and transferred securities:
Change in net unrealized gain/loss during the period	$	(74,193	)	$	15,580	$	(58,613	)
Reclassification adjustment for net losses included in net income		—			—		—
Cash flow hedge derivatives
Change in net unrealized gain/loss during the period		(16,241	)		3,411		(12,830	)
Reclassification adjustment for net gains included in net income		(793	)		167		(626	)
Total other comprehensive gain	$	(91,227	)	$	19,158	$	(72,069	)

	Before Tax Amount			Tax (Expense) Benefit		Net of Tax Amount
	(In Thousands)
Three months ended March 31, 2021:
Securities available for sale:
Change in net unrealized gain/loss during the period	$	(19,112	)	$	4,014	$	(15,098	)
Reclassification adjustment for net gains included in net income		(516	)		108		(408	)
Total other comprehensive loss	$	(19,628	)	$	4,122	$	(15,506	)

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Activity in accumulated other comprehensive income (loss), net of tax, was as follows:

	Securities Available For Sale			Post- retirement Benefit			Cash Flow Hedge Derivatives			Accumulated Other Comprehensive Income (Loss)
	(In Thousands)
Balance January 1, 2022	$	(4,023	)	$	(79	)	$	674		$	(3,428	)
Other comprehensive income/(loss) before reclassifications		(58,613	)		—			(12,830	)		(71,443	)
Amounts reclassified from accumulated other comprehensive income		—			—			(626	)		(626	)
Net other comprehensive income/(loss) during period		(58,613	)		—			(13,456	)		(72,069	)
Balance March 31, 2022	$	(62,636	)	$	(79	)	$	(12,782	)	$	(75,497	)
Balance January 1, 2021	$	15,083		$	(79	)	$	—		$	15,004
Other comprehensive income (loss) before reclassifications		(15,098	)		—			—			(15,098	)
Amounts reclassified from accumulated other comprehensive income		(408	)		—			—			(408	)
Net other comprehensive income during period		(15,506	)		—			—			(15,506	)
Balance March 31, 2021	$	(423	)	$	(79	)	$	—		$	(502	)

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Information

This quarterly report, as well as other publicly available documents, including those incorporated herein by reference, may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), 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 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 quarterly report 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 and its subsidiaries operate; future interest rate levels; 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, (the “2021 Form 10-K”). Any one or more of these factors have affected or could in the future affect Premier’s business and financial results in future periods and could cause actual results to differ materially from plans and projections.

All forward-looking statements made in this quarterly report 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.

Non-GAAP Financial Measures

In addition to results presented in accordance with GAAP, this report includes non-GAAP financial measures. The Company believes these non-GAAP financial measures provide additional information that is useful to investors in helping to understand the underlying performance and trends of the Company. The Company monitors the non-GAAP financial measures and the Company’s management believes they are helpful to investors because they provide an additional tool to use in evaluating the Company’s financial and business trends and operating results. In addition, the Company’s management uses these non-GAAP measures to compare the

39

Company’s performance to that of prior periods for trend analysis and for budgeting and planning purposes. Fully taxable-equivalent (“FTE”) is an adjustment to net interest income to reflect tax-exempt income on an equivalent before-tax basis.

Non-GAAP financial measures have inherent limitations, which are not required to be uniformly applied and are not audited. Readers should be aware of these limitations and should be cautious with respect to the use of such measures. To mitigate these limitations, the Company has practices in place to ensure that these measures are calculated using the appropriate GAAP or regulatory components in their entirety and to ensure that our performance is properly reflected to facilitate consistent period-to-period comparisons. The Company’s method of calculating these non-GAAP measures may differ from methods used by other companies. Although the Company believes the non-GAAP financial measures disclosed in this report enhance investors' understanding of our business and performance, these non-GAAP measures should not be considered in isolation, or as a substitute for those financial measures prepared in accordance with GAAP.

The following tables present a reconciliation of non-GAAP measures to their respective GAAP measures for the three month periods ended March 31, 2022 and 2021.

Reconciliations of Net Interest Income on an FTE basis, Net Interest Margin and Efficiency Ratio

	Three Months Ended March 31,
	2022			2021
	(In Thousands)
Net interest income (GAAP)	$	57,894		$	56,513
Add: FTE adjustment		229			237
Net interest income on a FTE basis (1)	$	58,123		$	56,750
Non-interest income-less securities gains/losses (2)	$	17,514		$	24,149
Non-interest expense (3)		41,303			38,803
Average interest-earning assets net of average
unrealized gains/losses on securities (4)		6,754,862			6,611,343
Ratios:
Net interest margin (1) / (4)		3.44	%		3.43	%
Efficiency ratio (3) / (1) + (2)		54.61	%		47.96	%

Critical Accounting Policies

Premier has established various accounting policies that govern the application of GAAP in the preparation of its Consolidated Financial Statements. The significant accounting policies of Premier are described in the Notes to the Consolidated Financial Statements. Certain accounting policies involve significant judgments and assumptions by management, which have a material impact on the carrying value of certain assets and liabilities and management considers such accounting policies to be critical accounting policies. The judgments and assumptions used by management are based on historical experience and other factors, which are believed to be reasonable under the circumstances. Because of the nature of the judgments and assumptions made by management, actual results could differ from these judgments and estimates, which could have a material impact on the carrying value of assets and liabilities and the results of operations of Premier.

General

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Premier is a financial holding company that conducts business through its wholly-owned subsidiaries, the Bank, First Insurance, PFC Risk Management and PFC Capital.

The Bank is an Ohio state-chartered bank headquartered in Youngstown, Ohio. It conducts operations through 75 banking center offices, 12 loan offices and serves clients through a team of wealth professionals. These operations are located in Ohio, Michigan, Indiana, Pennsylvania and West Virginia. The Bank provides a broad range of financial services including checking accounts, savings accounts, certificates of deposit, real estate mortgage loans, commercial loans, consumer loans, home equity loans and trust and wealth management services through its extensive branch network.

PFC Capital was formed as an Ohio limited liability company in 2016 for the purpose of providing mezzanine funding for customers of Home Savings. Mezzanine loans are offered by PFC Capital to customers in the Company’s market area and are expected to be repaid from the cash flow from operations of the business.

First Insurance is a wholly-owned subsidiary of the Company. First Insurance is an insurance agency that conducts business throughout the Company’s markets. First Insurance offers property and casualty insurance, life insurance and group health insurance.

PFC Risk Management is a wholly-owned insurance company subsidiary of the Company that insures the Company and its subsidiaries against certain risks unique to the operations of the Company and for which insurance may not be currently available or economically feasible, in today’s insurance marketplace. PFC Risk Management pools resources with several other similar insurance company subsidiaries of financial institutions to help minimize the risk allocable to each participating insurer.

Regulation – The Company is subject to regulation, examination and oversight by the Federal Reserve Board (“Federal Reserve”) and the SEC. The Bank is subject to regulation, examination and oversight by the FDIC and the Division of Financial Institutions of the Ohio Department of Commerce ("ODFI"). In addition, the Bank is subject to regulations of the Consumer Financial Protection Bureau (“CFPB”), which was established by the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”) and has broad powers to adopt and enforce consumer protection regulations. The Company and the Bank must file periodic reports with the Federal Reserve, and examinations are conducted periodically by the Federal Reserve, the FDIC and the ODFI to determine whether the Company and the Bank are in compliance with various regulatory requirements and are operating in a safe and sound manner. The Company is also subject to various Ohio laws which restrict takeover bids, tender offers and control-share acquisitions involving public companies which have significant ties to Ohio.

Changes in Financial Condition

At March 31, 2022, the Company's total assets amounted to $7.6 billion compared to $7.5 billion at December 31, 2021. The increase is primarily attributable to growth in net loans of $91.4 million from $5.2 billion at December 31, 2021 to $5.3 billion at March 31, 2022. The increases in loans was funded by advances from the FHLB and deposit growth. Deposits increased $35.2 million from $6.3 billion at December 31, 2021, to $6.3 billion as of March 31, 2022. Non-interest bearing deposits grew $8.4 million for the quarter while interest-bearing deposits grew $26.8 million for the quarter.

Loans receivable, excluding loans held for sale, were $5.3 billion at March 31, 2022, compared to $5.2 billion at December 31, 2021. The $91.4 million increase was primarily due to an increase in residential loans and commercial loans. Residential loans increased as the Company sold fewer loans due to higher yields on holding loans than selling loans. Loans held for sale decreased from $162.9 million at December 31, 2021, to $153.5 million at March 31, 2022 as a result of sales activity.

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Stockholders’ equity decreased $80.2 million from $1.0 billion at December 31, 2021, to $943.3 million at March 31, 2022. The quarterly decrease in stockholders’ equity was primarily due to a decrease in accumulated other comprehensive income (“AOCI”) and stock buybacks. The decrease in AOCI is primarily related to a $58.6 million negative valuation adjustment on the available-for-sale securities portfolio. The Company also completed the repurchase of 793,166 common shares for $24.2 million during the quarter. At March 31, 2022, 1,291,000 common shares remained available for repurchase under the Company’s existing repurchase program.

Average Balances, Net Interest Income and Yields Earned and Rates Paid

The following table presents for the periods indicated the total dollar amount of interest from average interest-earning assets and the resultant yields, as well as the interest expense on average interest-bearing liabilities, expressed both in thousands of dollars and rates, and the net interest margin. The table reports interest income from tax-exempt loans and investment on a fully tax-equivalent basis. All average balances are based upon daily balances (dollars in thousands).

	Three Months Ended March 31,
	2022							2021
	Average				Yield/			Average				Yield/
	Balance		Interest(1)		Rate(2)			Balance		Interest(1)		Rate(2)
Interest-earning assets:
Loans receivable	$	5,382,825	$	55,248		4.11	%	$	5,629,715	$	57,579		4.09	%
Securities		1,250,321		5,701		1.82			823,986		3,905		1.90
Interest bearing deposits		109,757		46		0.17			145,658		66		0.18
FHLB stock		11,959		59		1.97			11,984		59		1.97
Total interest-earning assets		6,754,862		61,054		3.62			6,611,343		61,609		3.73
Non-interest-earning assets		786,552							727,543
Total assets	$	7,541,414						$	7,338,886
Interest-bearing liabilities:
Deposits	$	4,600,801	$	2,222		0.19	%	$	4,546,272	$	4,164		0.37	%
FHLB advances and other		16,278		13		0.32			—		—		—
Subordinated debentures		84,988		696		3.28			84,868		695		3.28
Total interest-bearing liabilities		4,702,067		2,931		0.25			4,631,140		4,859		0.42
Non-interest bearing deposits		1,713,416		—		—			1,644,020		—		—
Total including non-interest bearing demand deposits		6,415,483		2,931		0.18			6,275,160		4,859		0.31
Other non-interest-bearing liabilities		92,115							91,073
Total liabilities		6,507,598							6,366,233
Stockholders’ equity		1,033,816							972,653
Total liabilities and stockholders’ equity	$	7,541,414						$	7,338,886
Net interest income; interest rate spread			$	58,123		3.37	%			$	56,750		3.31	%
Net interest margin (3)						3.44	%						3.43	%
Average interest-earning assets to average    interest-bearing liabilities						144	%						143	%

(1)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%.

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(2)Annualized

(3)Net interest margin is net interest income divided by average interest-earning assets. See Non-GAAP Financial Measure discussion for further details.

Results of Operations

Three months ended March 31, 2022 and 2021

For the three months ended March 31, 2022, the Company reported net income of $26.4 million compared to net income of $41.0 million for the quarter ended March 31, 2021. On a per share basis, basic and diluted earnings per common share were $0.73 for the three months ended March 31, 2022 and basic and diluted income per common share were $1.10 for the three months ended March 31, 2021. The changes from 2021 to 2022 are due to fluctuations in provision for credit losses, mortgage banking income and security gains/losses, which are described in further detail below.

Net Interest Income

The Company’s net interest income is determined by its interest rate spread (i.e. the difference between the yields on its interest-earning assets and the rates paid on its interest-bearing liabilities) and the relative amounts of interest-earning assets and interest-bearing liabilities.

Net interest income was $57.9 million for the quarter ended March 31, 2022, up from $56.5 million for the same period in 2021. Average earning assets for the quarter ended March 31, 2022 were $6.8 billion compared to $6.6 billion for the quarter ended March 31, 2021. The tax-equivalent net interest margin was 3.44% for the quarter ended March 31, 2022, an increase from 3.43% for the same period in 2021. The slight increase in margin between the 2022 and 2021 quarters was primarily due to a decrease in the cost of funds partially offset by a decrease in the yield on earning assets. The yield on interest-earning assets was 3.62% for the quarter ended March 31, 2022, down 11 basis points from 3.73% for the same period in 2021. The cost of interest-bearing liabilities between the two periods declined 17 basis points to 0.25% in the first quarter of 2022 from 0.42% in the first quarter of 2021.

Interest income decreased $547,000 to $60.8 million for the quarter ended March 31, 2022, from $61.4 million for the quarter ended March 31, 2021. This decrease is due to a decrease in interest on loans offset mostly by an increase in interest on securities. Income from loans decreased to $55.2 million for the quarter ended March 31, 2022, compared to $57.6 million for the same period in 2021 due to a decrease in average loan balances to $5.4 billion for the three months ended March 31, 2022 from $5.6 billion for the first quarter of 2021 primarily as a result of a decline in PPP loans. Interest income from investments increased $1.8 million in the first quarter of 2022 to $5.5 million compared to $3.7 million in the same period in 2021 primarily due to an increase in average security balances of $426.3 million. The yield decreased 8 basis points to 1.82% for the three months ended March 31, 2022, compared to 1.90% for the same period in 2021. Income from interest bearing deposits decreased to $46,000 in the first quarter of 2022 compared to $66,000 for the same period in 2021. Average balances on interest earning deposits decreased $35.9 million to $109.8 million in the first quarter of 2022 from $145.7 million for the same period in 2021. The yield earned on interest bearing deposits declined 1 basis points in the first quarter of 2022 compared to the same period in 2021.

Interest expense decreased $2.0 million to $2.9 million in the first quarter of 2022 compared to $4.9 million for the same period in 2021. This decrease was due to a decline in the cost of interest-bearing liabilities of 17 basis points. Interest expense related to interest-bearing deposits was $2.2 million in the first quarter of 2022 compared to $4.2 million for the same period in 2021. Interest expense recognized by the Company related to FHLB advances was $13,000 in the first quarter of 2022. There was no expense related to FHLB advances for the same period in 2021. Expenses on subordinated debentures and notes payable was essentially flat at $696,000 in the first quarter of 2022 compared to $695,000 for the same period in 2021.

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Allowance for Credit Losses

The Company has adopted ASU 2016-13, the Current Expected Credit Loss (“CECL”) model. The ACL represents management’s assessment of the estimated credit losses the Company will receive over the life of the loan. ACL requires a projection of credit losses over the contract lifetime of the credit adjusted for prepayment tendencies. Management analyzes the adequacy of the ACL regularly through reviews of the loan portfolio. Consideration is given to economic conditions, changes in interest rates and the effect of such changes on collateral values and borrower’s ability to pay, changes in the composition of the loan portfolio and trends in past due and non-performing loan balances. The ACL is a material estimate that is susceptible to significant fluctuation and is established through a provision for credit losses based on management’s evaluation of the inherent risk in the loan portfolio. In addition to extensive in-house loan monitoring procedures, the Company utilizes an outside party to conduct an independent loan review of commercial loan and commercial real estate loan relationships. The Company’s goal is to have 45-50% of the portfolio reviewed annually using a risk based approach. Management utilizes the results of this outside loan review to assess the effectiveness of its internal loan grading system as well as to assist in the assessment of the overall adequacy of the ACL associated with these types of loans.

The ACL is made up of two basic components. The first component of the allowance for credit loss is the specific reserve in which the Company sets aside reserves based on the analysis of individual analyzed credits. In establishing specific reserves, the Company analyzes all substandard, doubtful and loss graded loans quarterly and makes judgments about the risk of loss based on the cash flow of the borrower, the value of any collateral and the financial strength of any guarantors. If the loan is individually analyzed and cash flow dependent, then a specific reserve is established for the discount on the net present value of expected future cash flows. If the loan is individually analyzed and collateral dependent, then any shortfall is either charged off or a specific reserve is established. The Company also considers the impacts of any Small Business Administration or Farm Service Agency guarantees. The specific reserve portion of the ACL was $7.1 million at both March 31, 2022, and December 31, 2021.

The second component is a general reserve, which is used to record loan loss reserves for groups of homogenous loans in which the Company estimates the potential losses over the contractual lifetime of the loan adjusted for prepayment tendencies. In addition, the future economic environment is incorporated in projection with loss expectations to revert to the long-run historical mean after such time as management can no longer make or obtain a reasonable and supportable forecast. For purposes of the general reserve analysis, the six loan portfolio segments are further segregated into fifteen different loan pools to allocate the ACL. Residential real estate is further segregated into owner occupied and nonowner occupied for ACL. Commercial real estate is split into owner occupied, nonowner occupied, multifamily, agriculture land and other commercial real estate. Commercial credits are comprised of commercial working capital, agriculture production and other commercial credits. Construction is broken down into construction other and residential construction and consumer is broken down into consumer direct, consumer indirect and home equity. The Company utilizes three different methodologies to analyze loan pools.

The DCF methodology was selected as the appropriate method for loan segments with longer average lives and regular payment structures. This method is applied to a majority of the Company’s real estate loans. DCF generates cash flow projections at the instrument level where payment expectations are adjusted for prepayment and curtailment to produce an expected cash flow stream that is net of estimated credit losses. This expected cash flow stream net of estimated credit losses is compared to the net present value of expected cash flows to establish a valuation account for these loans.

The PD/LGD methodology was selected as most appropriate for loan segments with average lives of three years or less and/or irregular payment structures. This methodology was used for home equity and commercial portfolios. A loan is considered to default if one of the following is detected:

•Becomes 90 days or more past due;

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•Is placed on nonaccrual;

•Is marked as a troubled debt restructuring (“TDR”); or

•Is partially or wholly charged-off.

The default rate is measured on the current life of the loan segment using a weighted average of the maximum possible quarters that fall within the defined unemployment rate range. PD/LGD is determined on a dollar-ratio basis, measuring the ratio of net charged off principal to defaulted principal.

The consumer portfolio contains loans with many different payment structures, payment streams and collateral. The remaining life method was deemed most appropriate for consumer direct loans and DCF for consumer indirect. The weighted average remaining life uses an annual charge-off rate over several vintages to estimate credit losses. The average annual charge-off rate is applied to the contractual term adjusted for prepayments. The DCF method was selected for consumer indirect due to the loan segments' longer average remaining life in addition to regular payment structure.

Additionally, CECL requires a reasonable and supportable forecast when establishing the ACL. The Company estimates losses over an approximate one-year forecast period using Moody’s baseline economic forecasts, and then reverts to longer term historical loss experience over a three-year period.

The quantitative general allowance increased to $15.0 million at March 31, 2022, up from $12.3 million at December 31, 2021. As a part of the CECL model in certain calculations, especially discounted cash flows, projected loan losses are correlated to the levels of the unemployment rate over the life of the loans. A decline in current and forecasted unemployment rates resulted in a reduction in projected loan losses.

In addition to the quantitative analysis, a qualitative analysis is performed each quarter to provide additional general reserves on loan portfolios that are not individually analyzed for various factors. The overall qualitative factors are based on nine sub-factors. The nine sub-factors have been aggregated into three qualitative factors: economic, environment and risk.

ECONOMIC

1)Changes in international, national and local economic business conditions and developments, including the condition of various market segments.

2)Changes in the value of underlying collateral for collateral dependent loans.

ENVIRONMENT

3)Changes in the nature and volume in the loan portfolio.

4)The existence and effect of any concentrations of credit and changes in the level of such concentrations.

5)Changes in lending policies and procedures, including underwriting standards and collection, charge-off and recovery practices.

6)Changes in the quality and breadth of the loan review process.

7)Changes in the experience, ability and depth of lending management and staff.

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RISK

8)Changes in the trends of the volume and severity of delinquent and classified loans, and changes in the volume of non-accrual loans, TDRs, and other loan modifications.

9)Changes in other external factors, such as regulatory, legal and technological environments.

The qualitative analysis indicated a general reserve of $45.1 million at March 31, 2022, compared to $47.1 million at December 31, 2021. Overall, the factors decreased slightly in the first quarter as a result of favorable trends in the environmental and risk factors listed above, partially offset by an increase in the economic factors.

The Company’s general reserve percentages for main loan segments, not otherwise classified, ranged from 0.66% for consumer indirect loans to 1.48% for commercial real estate owner occupied loans at March 31, 2022.

Under ASU Topic 326, when loans are purchased with evidence of more than insignificant deterioration of credit, they are accounted for as purchase credit deteriorated (“PCD”). PCD loans acquired in a transaction are marked to fair value and a mark on yield is recorded. In addition, an adjustment is made to the ACL for the expected loss through retained earnings on the acquisition date. These loans are assessed on a regular basis and subsequent adjustments to the ACL are recorded on the income statement. The outstanding balance and related allowance on these loans as of March 31, 2022, is $27.8 million and $1.6 million, respectively.

As a result of the quantitative and qualitative analyses, along with the change in specific reserves and the change in net charge-offs in the quarter, the Company’s provision for credit losses for the three months ended March 31, 2022 was an expense of $626,000. This is compared to a recovery of $7.5 million for the three months ended March 31, 2021. The ACL was $67.2 million at March 31, 2022, and $66.5 million at December 31, 2021. The ACL represented 1.25% of loans, net of undisbursed loan funds and deferred fees and costs at March 31, 2022, compared to 1.26% at December 31, 2021. In management’s opinion, the overall ACL of $67.2 million as of March 31, 2022, is adequate to cover current estimated credit losses.

Management also assesses the value of OREO as of the end of each accounting period and recognizes write-downs to the value of that real estate in the income statement if conditions dictate. In the three month period ended March 31, 2022, there were no write-downs of real estate held for sale. Management believes that the values recorded at March 31, 2022, for OREO and repossessed assets represent the realizable value of such assets.

Total classified loans decreased to $60.3 million at March 31, 2022, compared to $69.5 million at December 31, 2021, a decrease of $9.2 million. Management monitors collateral values of all loans included on the watch list that are collateral dependent and believes that allowances for such loans at March 31, 2022, were appropriate. Of the $47.3 million in non-accrual loans at March 31, 2022, $21.9 million or (46.3%) are less than 90 days past due. Non-performing assets include loans that are on non-accrual, OREO and other assets held for sale. Non-performing assets at March 31, 2022, and December 31, 2021, by category were as follows:

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	March 31,			December 31,
	2022			2021
	(In Thousands)
Non-performing loans:
Residential real estate	$	9,280		$	9,034
Commercial real estate		14,423			14,621
Construction		—			—
Commercial		11,386			11,531
Home equity and improvement		2,171			2,051
Consumer finance		2,100			1,873
PCD		7,938			8,904
Total non-performing loans		47,298			48,014
Real estate owned		253			171
Total repossessed assets		253			171
Total Nonperforming assets	$	47,551		$	48,185
TDR loans, accruing	$	6,287		$	7,768
Total nonperforming assets as a percentage of total assets		0.63	%		0.64	%
Total nonperforming assets as a percentage of total loans plus REO*		0.88	%		0.91	%
ACL as a percent of total nonperforming assets		141.31	%		137.94	%

* Total loans are net of undisbursed loan funds and deferred fees and costs.

PCD loans account for 16.7% of non-performing loans. Excluding non-performing PCD loans, non-performing loans in the commercial loan category represented 1.25% of the total loans in that category at March 31, 2022, compared to 1.29% for the same category at December 31, 2021. Non-performing loans in the non-residential and multi-family residential real estate loan category were 0.58% of the total loans in this category at March 31, 2022, compared to 0.60% at December 31, 2021. Non-performing loans in the residential loan category represented 0.76% of the total loans in that category at March 31, 2022, compared to 0.77% for the same category at December 31, 2021.

The Bank’s Special Assets Committee meets monthly to review the status of work-out strategies for all criticized relationships, which include all non-accrual loans. Based on such factors as anticipated collateral values in liquidation scenarios, cash flow projections, assessment of net worth of guarantors and all other factors which may mitigate risk of loss, the Special Asset Committee makes recommendations regarding proposed charge-offs which are then approved by the Committee.

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The following tables detail net charge-offs/recoveries and non-accrual loans by loan type.

	For the Three Months Ended March 31, 2022						As of March 31, 2022
	Net Charge-offs (Recovery)			% of Total Net Charge-offs			Nonaccrual Loans		% of Total Non- Accrual Loans
	(In Thousands)						(In Thousands)
Residential	$	82			(81.19	)%	$	9,280		19.62	%
Commercial real estate		(52	)		51.49	%		14,423		30.49	%
Construction		—			—			-		—
Commercial		(89	)		88.12	%		11,386		24.07	%
Home equity and improvement		(14	)		13.86	%		2,171		4.59	%
Consumer finance		19			(18.81	)%		2,100		4.44	%
PCD		(47	)		46.53	%		7,938		16.78	%
Total	$	(101	)		100.00	%	$	47,298		100.00	%

	For the Three Months Ended March 31, 2021						As of December 31, 2021
	Net Charge-offs (Recovery)			% of Total Net Charge-offs			Nonaccrual Loans		% of Total Non-Accrual Loans
	(In Thousands)						(In Thousands)
Residential	$	(8	)		4.23	%	$	9,034		18.82	%
Commercial real estate		(36	)		19.05	%		14,621		30.45	%
Construction		—			—			-		—
Commercial		(20	)		10.58	%		11,531		24.02	%
Home equity and improvement		(26	)		13.76	%		2,051		4.27	%
Consumer finance		5			(2.65	)%		1,873		3.90	%
PCD		(104	)		55.03	%		8,904		18.54	%
Total	$	(189	)		100.00	%	$	48,014		100.00	%

	For the Quarter Ended
	1st Qtr 2022			4th Qtr 2021		3rd Qtr 2021			2nd Qtr 2021			1st Qtr 2021
	(In Thousands)
Allowance at beginning of period	$	66,468		$	73,217	$	71,367		$	74,754		$	82,079
Provision (benefit) for credit losses		626			2,818		1,594			(3,631	)		(7,514	)
Charge-offs:
Residential		140			83		27			—			—
Commercial real estate		7			3,087		84			—			—
Construction		—			—		—			—			—
Commercial		10			6,513		372			—			70
Home equity and improvement		20			13		47			—			3
Consumer finance		102			249		85			106			32
PCD		10			2		3			605			4
Total charge-offs		289			9,947		618			711			109
Recoveries		390			380		874			955			298
Net charge-offs (recoveries)		(101	)		9,567		(256	)		(244	)		(189	)
Ending allowance	$	67,195		$	66,468	$	73,217		$	71,367		$	74,754

The following table sets forth information concerning the allocation of the Company’s ACL by loan categories at the dates indicated.

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	March 31, 2022					December 31, 2021					September 30, 2021					June 30, 2021					March 31, 2021
	Amount		Percent of total loans by category			Amount		Percent of total loans by category			Amount		Percent of total loans by category			Amount		Percent of total loans by category			Amount		Percent of total loans by category
											(Dollars In Thousands)
Residential	$	11,640		20.7	%	$	12,029		20.2	%	$	13,749		19.7	%	$	15,268		19.6	%	$	17,508		19.9	%
Commercial real estate		34,201		42.3	%		32,399		42.5	%		34,092		41.6	%		34,461		41.4	%		35,272		40.9	%
Construction		2,613		15.0	%		3,004		15.0	%		3,621		15.4	%		2,739		14.3	%		2,776		12.8	%
Commercial		13,821		15.4	%		13,410		15.5	%		15,428		16.6	%		12,211		18.1	%		12,191		20.0	%
Home equity and improvement		3,919		4.4	%		4,221		4.6	%		4,688		4.6	%		4,988		4.5	%		5,181		4.4	%
Consumer finance		1,001		2.2	%		1,405		2.2	%		1,639		2.2	%		1,700		2.0	%		1,826		2.0	%
	$	67,195		100.0	%	$	66,468		100.0	%	$	73,217		100.0	%	$	71,367		100.0	%	$	74,754		100.0	%

Key Asset Quality Ratio Trends

	1st Qtr 2022			4th Qtr 2021			3rd Qtr 2021			2nd Qtr 2021			1st Qtr 2021
Allowance for credit losses / loans*		1.25	%		1.26	%		1.39	%		1.33	%		1.37	%
Allowance for credit losses / loans excluding PPP loans		1.25	%		1.27	%		1.43	%		1.41	%		1.49	%
Allowance for credit losses / non-performing assets		141.31	%		137.94	%		121.77	%		172.63	%		151.47	%
Allowance for credit losses / non-performing loans		142.07	%		138.43	%		122.30	%		172.82	%		151.64	%
Non-performing assets / loans plus OREO*		0.88	%		0.91	%		1.14	%		0.77	%		0.90	%
Non-performing assets / total assets		0.63	%		0.64	%		0.81	%		0.54	%		0.66	%
Net charge-offs / average loans (annualized)		(0.01	)%		0.71	%		(0.02	)%		(0.02	)%		(0.01	)%

* Total loans are net of undisbursed funds and deferred fees and costs.

Non-Interest Income.

Total non-interest income decreased $9.4 million in the first quarter of 2022 to $16.9 million from $26.3 million for the same period in 2021.

Service Fees. Service fees and other charges increased by $531,000 from $5.5 million for the three months ended March 31, 2022, to $6.0 million for the same period in 2021. This increase is due primarily to higher ATM and interchange related fees in the first quarter of 2022 compared to the same quarter in 2021.

Mortgage Banking Activity. Mortgage banking income decreased to $4.3 million in the first quarter of 2022 from $10.5 million in the first quarter of 2021. Mortgage banking gains decreased to $2.5 million in the first quarter of 2022 from $5.6 million in the first quarter of 2021. This decrease was primarily due to lower production, compressed margins and lower saleable mix. Mortgage loan servicing revenue was $1.9 million in the first quarter of both 2022 and 2021. Amortization of mortgage servicing rights decreased to $1.4 million in the first quarter of 2022 from $2.3 million in the first quarter of 2021. The Company had a benefit for a decrease in the valuation adjustment in mortgage servicing assets of $1.2 million in the first quarter of 2022 compared with a benefit for a decrease in the valuation adjustment of $5.3 million in the first quarter of 2021. These fluctuations have been caused by changes in the level of interest rates and prepayment speeds.

Gain on Sale of Available-for-Sale Securities. The Company sold available-for-sale securities during the first quarter of 2021 resulting in a gain of $516,000 compared to no activity for the same period in 2022. The Company sold the securities to exit from fast paying mortgage-backed securities and take advantage of favorable pricing.

Gain (loss) on Equity Securities. The Company recognized an unrealized loss on equity securities of $643,000 for the first quarter of 2022 compared to an unrealized gain of $1.6 million in the first quarter of 2021.

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These amounts are attributable to changes in valuations in the trading securities portfolio as a result of market conditions.

Insurance Commissions. Insurance commissions decreased slightly from $4.9 million in the first quarter of 2021 to $4.6 million in the first quarter of 2022.

Wealth Management Income. Income from wealth management was $1.5 million for the first quarter of 2022 compared to $1.8 million in the first quarter of 2021.

Bank-Owned Life Insurance. Income from bank owned life insurance decreased slightly from $1.2 million in the first quarter of 2021 to $996,000 for the same period in 2022 as a result of $334,000 in claims in the first quarter of 2021 compared to none in 2022.

Other Non-Interest Income. Other non-interest income declined to $150,000 in the first quarter of 2022 from $340,000 in the same period in 2021.

Non-Interest Expense.

Non-interest expense increased $2.5 million to $41.3 million for the first quarter of 2022 compared to $38.8 million for the same period in 2021. The increase is mainly attributable to compensation and benefits.

Compensation and Benefits. Compensation and benefits increased to $25.5 million in the first quarter of 2022, compared to $22.0 million in the first quarter of 2021. This is primarily due to the combination of higher costs related to higher staffing levels for our growth initiatives, continued higher healthcare benefit costs and lower deferred costs related to lower residential mortgage production.

Occupancy. Occupancy expense decreased to $3.7 million in the first quarter of 2022 compared to $4.1 million in the first quarter of 2021. This decrease was due to the closure of three branches in 2021.

FDIC Insurance Premium. The premiums on FDIC insurance decreased to $593,000 for the three months ended March 31, 2022 compared to $898,000 for the first quarter of 2021. The decrease was due to higher levels of equity at the Bank resulting from increased net income.

Financial Institutions Tax. The Company’s financial institutions tax remained flat at $1.2 million in the first quarter of 2022 and 2021.

Data Processing. Data processing costs were mostly flat at $3.3 million in the first quarter of 2022, a decrease of $47,000 from $3.4 million in the first quarter of 2021.

Amortization of Intangibles. Expense from the amortization of intangibles decreased to $1.4 million in the first quarter of 2022 from $1.6 million in the first quarter of 2021. The decrease is primarily related to the amortization of core deposit intangibles over the past year.

Other Non-Interest Expenses. Other non-interest expenses decreased $96,000 to $5.5 million for the three months ended March 31, 2022 from $5.6 million for the same period in 2021.

Liquidity

As a regulated financial institution, the Company is required to maintain appropriate levels of “liquid” assets to meet short-term funding requirements. The Company’s liquidity, primarily represented by cash and cash equivalents, is a result of its operating, investing and financing activities.

The principal source of funds for the Company are deposits, loan repayments, maturities of securities, borrowings from financial institutions and other funds provided by operations. The Bank also has the ability to

50

borrow from the FHLB. While scheduled loan repayments and maturing investments are relatively predictable, deposit flows and early loan repayments are more influenced by interest rates, general economic conditions and competition. Investments in liquid assets maintained by the Company and the Bank are based upon management’s assessment of (i) the need for funds, (ii) expected deposit flows, (iii) yields available on short-term liquid assets, and (iv) objectives of the asset and liability management program.

The Bank’s Asset/Liability Committee (“ALCO”) is responsible for establishing and monitoring liquidity guidelines, policies and procedures. ALCO uses a variety of methods to monitor the liquidity position of the Bank including liquidity analyses that measure potential sources and uses of funds over future periods out to one year. ALCO also performs contingency funding analyses to determine the Bank’s ability to meet potential liquidity needs under stress scenarios that cover varying time horizons ranging from immediate to longer term.

At March 31, 2022, the Bank had $1.9 billion of on-hand liquidity, defined as cash and cash equivalents, unencumbered securities and additional FHLB borrowing capacity.

Liquidity risk arises from the possibility that the Company may not be able to meet its financial obligations and operating cash needs or may become overly reliant upon external funding sources. In order to manage this risk, the Company’s Board of Directors has established a Liquidity Policy that identifies primary sources of liquidity, establishes procedures for monitoring and measuring liquidity and quantifies minimum liquidity requirements. This policy designates ALCO as the body responsible for meeting these objectives. ALCO reviews liquidity on a monthly basis and approves significant changes in strategies that affect balance sheet or cash flow positions.

Capital Resources

Capital is managed at the Bank and on a consolidated basis. Capital levels are maintained based on regulatory capital requirements and the economic capital required to support credit, market, liquidity and operational risks inherent in the business, as well as flexibility needed for future growth and new business opportunities.

In the first quarter of 2020, the federal banking agencies approved the final rules implementing CECL. Under the final rules the Company had the ability to phase in the effects of the adoption of CECL, which it chose not to do. The full effect of the adoption of CECL was absorbed in the Company’s March 31, 2020 capital calculations. The Company met each of the well-capitalized ratio guidelines at March 31, 2022. The following table indicates the capital ratios for the Company (consolidated) and the Bank at March 31, 2022, and December 31, 2021 (in thousands):

51

	March 31, 2022
	Actual					Minimum Required for Adequately Capitalized					Minimum Required to be Well Capitalized for Prompt Corrective Action
	Amount		Ratio			Amount		Ratio(1)			Amount		Ratio
CET1 Capital (to Risk-Weighted Assets)
Consolidated	$	683,235		10.31	%	$	298,312		4.5	%	N/A		N/A
Premier Bank	$	713,920		10.81	%	$	297,097		4.5	%	$	429,139		6.5	%
Tier 1 Capital
Consolidated	$	718,235		9.86	%	$	291,406		4.0	%	N/A		N/A
Premier Bank	$	713,920		9.88	%	$	289,054		4.0	%	$	361,317		5.0	%
Tier 1 Capital (to Risk Weighted Assets)
Consolidated	$	718,235		10.83	%	$	397,750		6.0	%	N/A		N/A
Premier Bank	$	713,920		10.81	%	$	396,129		6.0	%	$	528,172		8.0	%
Total Capital (to Risk Weighted Assets)
Consolidated	$	839,184		12.66	%	$	530,333		8.0	%	N/A		N/A
Premier Bank	$	784,869		11.89	%	$	528,172		8.0	%	$	660,215		10.0	%

(1)Excludes capital conservation buffer of 2.50%

	December 31, 2021
	Actual					Minimum Required for Adequately Capitalized					Minimum Required to be Well Capitalized for Prompt Corrective Action
	Amount		Ratio			Amount		Ratio(1)			Amount		Ratio
CET1 Capital (to Risk-Weighted Assets)
Consolidated	$	689,930		10.92	%	$	284,394		4.5	%	N/A		N/A
Premier Bank	$	725,600		11.53	%	$	283,265		4.5	%	$	409,160		6.5	%
Tier 1 Capital
Consolidated	$	724,930		10.10	%	$	287,138		4.0	%	N/A		N/A
Premier Bank	$	725,600		10.16	%	$	285,664		4.0	%	$	357,080		5.0	%
Tier 1 Capital (to Risk Weighted Assets)
Consolidated	$	724,930		11.47	%	$	379,192		6.0	%	N/A		N/A
Premier Bank	$	725,600		11.53	%	$	377,686		6.0	%	$	503,582		8.0	%
Total Capital (to Risk Weighted Assets)
Consolidated	$	844,389		13.36	%	$	505,589		8.0	%	N/A		N/A
Premier Bank	$	795,059		12.63	%	$	503,582		8.0	%	$	629,477		10.0	%

(1)Excludes capital conservation buffer of 2.50%.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

As discussed in detail in the Company’s 2021 Form 10-K, the Company's ability to maximize net income is dependent on management’s ability to plan and control net interest income through management of the pricing and mix of assets and liabilities. Because a large portion of assets and liabilities of the Company are monetary in nature, changes in interest rates and monetary or fiscal policy affect its financial condition and can have significant impact on the net income of the Company.

The Company monitors its exposure to interest rate risk on a quarterly basis through simulation analysis that measures the impact changes in interest rates can have on net interest income. The simulation technique

52

analyzes the effect of a presumed 100 basis point shift in interest rates (which is consistent with management’s estimate of the range of potential interest rate fluctuations) and takes into account prepayment speeds on amortizing financial instruments, loan and deposit volumes and rates, non-maturity deposit assumptions and capital requirements.

The table below presents, for the twelve months subsequent to March 31, 2022 and December 31, 2021, an estimate of the change in net interest income that would result from an immediate (shock) change in interest rates, moving in a parallel fashion over the entire yield curve, relative to the measured base case scenario. Based on our net interest income simulation as of March 31, 2022, net interest income sensitivity to changes in interest rates for the twelve months subsequent to March 31, 2022, decreased in the rising rate environment and increased in the falling rate environment for the shock compared to the sensitivity profile for the twelve months subsequent to December 31, 2021.

	Impact on Future Annual Net Interest Income
	March 31, 2022		December 31, 2021
Immediate Change in Interest Rates
+400		14.45%	19.16%
+300		11.08%	14.52%
+200		7.49%	9.66%
+100		3.62%	4.82%
-100		(3.13)%	(3.21)%

To analyze the impact of changes in interest rates in a more realistic manner, non-parallel interest rate scenarios are also simulated. These non-parallel interest rate scenarios indicate that net interest income may decrease from the base case scenario should the yield curve flatten or become inverted. Conversely, if the yield curve should steepen, net interest income may increase.

In addition to the simulation analysis, Premier also uses an economic value of equity (“EVE”) analysis to measure risk in the balance sheet incorporating all cash flows over the estimated remaining life of all balance sheet positions. The EVE analysis generally calculates the net present value of Premier’s assets and liabilities in rate shock environments that range from -100 basis points to +400 basis points. The results of this analysis are reflected in the following tables for the quarter ended March 31, 2022, and the year ended December 31, 2021.

	March 31, 2022	December 31, 2021
Change in Rates	Economic Value of Equity % Change	Economic Value of Equity % Change
+400 bp	2.03%	7.01%
+ 300 bp	2.41%	6.61%
+ 200 bp	2.20%	5.39%
+ 100 bp	1.45%	3.10%
0 bp	—		—
- 100 bp	(3.08)%	(6.83)%

Item 4. Controls and Procedures

Disclosure controls and procedures are controls and other procedures designed to ensure that information required to be disclosed in the Company's reports filed under the Exchange Act, including this report, is recorded, processed, summarized, and reported within the time periods specified in the rules and forms of the SEC, including those disclosure controls and procedures designed to ensure that such information is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed or operated,

53

can provide only reasonable, not absolute, assurance of achieving the desired control objectives, as ours are designed to do, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. An evaluation was carried out under the supervision and with the participation of the Company’s management, including the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of March 31, 2022. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective. No changes occurred in the Company’s internal controls over financial reporting during the quarter ended March 31, 2022, that materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II-OTHER INFORMATION

Item 1. Legal Proceedings

Premier and its subsidiaries are involved in various legal proceedings that arise in the ordinary course of its business. While the ultimate liability with respect to litigation matters and claims cannot be determined at this time, management believes any resulting liability and other amounts relating to pending matters are not likely to be material to the Company’s consolidated financial position or results of operations.

Item 1A. Risk Factors

There are no material changes from the risk factors set forth under Part I, Item 1A, “Risk Factors” in the 2021 Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The Company had no unregistered sales of equity securities during the quarter ended March 31, 2022. The following table provides information regarding Premier’s purchases of its common stock during the three-month period ended March 31, 2022:

Period	Total Number of Shares Purchased(2)		Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs(1)
Beginning Balance, January 1, 2022								1,032,864
January 1 - January 31, 2022		103,038	$	30.86		99,166		1,985,000
February 1 - February 28, 2022		486,126		30.46		484,600		1,500,400
March 1 - March 31, 2022		209,400		30.69		209,400		1,291,000
Total		798,564	$	28.92		793,166		1,291,000

(1)On January 26, 2021, the Company announced that its Board of Directors authorized a program for the repurchase of up to 2,000,000 shares of outstanding common stock. On January 25, 2022, the Company announced that its Board of Directors approved an increase in the Company’s repurchasing authorization to up to 2,000,000 shares of outstanding common stock. There is no expiration date for the repurchase program.

(2)Of this amount, 5,398 shares were obtained in fulfillment of tax obligations from vesting of restricted stock compensation and were not part of the publicly announced repurchase program.

Item 3. Defaults upon Senior Securities

Not applicable.

54

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

55

Item 6. Exhibits

Exhibit 3.1	Second Amended and Restated Articles of Incorporation of Premier Financial Corp. (incorporated herein by reference to Exhibit 3.2 in Registrant’s Form 8-K filed June 22, 2020 (File No. 000-26850))
Exhibit 3.2	Second Amended and Restated Code of Regulations of Premier Financial Corp. (reflecting all amendments) (incorporated herein by reference to Exhibit 3.3 in Registrant’s Form 8-K filed June 22, 2020 (File No. 000-26850))
Exhibit 10.1	Premier Financial Corp. Long Term Incentive Program (incorporated herein by reference to Exhibit 10.1 in Registrant's Form 8-K filed February, 23, 2022 (File NO. 000-26850))
Exhibit 10.2	Premier Financial Corp. Form of Long Term Incentive Plan Performance Share Units Award Agreement (incorporated herein by reference to Exhibit 10.2 in Registrant's Form 8-K filed February, 23, 2022 (File NO. 000-26850))
Exhibit 10.3	Premier Financial Corp. Restricted Stock Award Agreement (incorporated herein by reference to Exhibit 10.3 in Registrant's Form 8-K filed February, 23, 2022 (File NO. 000-26850))
Exhibit 10.4	Premier Financial Corp. Short Term Incentive Program (incorporated herein by reference to Exhibit 10.4 in Registrant's Form 8-K filed February, 23, 2022 (File NO. 000-26850))
Exhibit 31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
Exhibit 31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
Exhibit 32.1	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Exhibit 32.2	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Exhibit 101	The following financial information from the Registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 2022 is formatted in Inline XBRL: (i) Unaudited Consolidated Condensed Statements of Financial Condition at March 31, 2022 and December 31, 2021; (ii) Unaudited Consolidated Condensed Statements of Income for the three months ended March 31, 2022 and 2021; (iii) Unaudited Consolidated Condensed Statements of Comprehensive Income for the three months ended March 31, 2022 and 2021; (iv) Unaudited Consolidated Condensed Statements of Changes in Stockholders’ Equity for the three months ended March 31, 2022 and 2021; (v) Unaudited Consolidated Condensed Statements of Cash Flows for the three months ended March 31, 2022 and 2021; and (vi) Notes to Unaudited Consolidated Condensed Financial Statements.
Exhibit 104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

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.

(Registrant)

56

Date: May 9, 2022	By:	/s/ Gary M. Small
		Gary M. Small
		President and Chief Executive Officer (Principal Executive Officer)

Date: May 9, 2022	By:	/s/ Paul D. Nungester, Jr.
		Paul D. Nungester, Jr.
		Executive Vice President and
		Chief Financial Officer (Principal Financial and Accounting Officer)

57

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT

I, Gary M. Small, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Premier Financial Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	May 9, 2022	/s/ Gary M. Small
		Gary M. Small
		President and
		Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF THE CHIEF FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT

I, Paul D. Nungester, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Premier Financial Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	May 9, 2022	/s/ Paul D. Nungester, Jr.
		Paul D. Nungester, Jr.
		Executive Vice President and
		Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Premier Financial Corp. (the "Company") on Form 10-Q for the period ending March 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Gary M. Small, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and in connection with this Quarterly Report on Form 10-Q, that:

1. The Report fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and

2. The information contained in the Report fairly presents, in all material respects, the Company's financial condition and results of operations.

Date:	May 9, 2022	/s/ Gary M. Small
		Gary M. Small
		Chief Executive Officer

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

EXHIBIT 32.2

CERTIFICATION OF THE CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Premier Financial Corp. (the "Company") on Form 10-Q for the period ending March 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Paul D. Nungester, Jr., Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and in connection with this Quarterly Report on Form 10-Q, that:

1. The Report fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and

2. The information contained in the Report fairly presents, in all material respects, the Company's financial condition and results of operations.

Date:	May 9, 2022	/s/ Paul D. Nungester, Jr.
		Paul D. Nungester, Jr.
		Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2022	May 02, 2022
Cover [Abstract]
Document Type	10-Q
Document Period End Date	Mar. 31, 2022
Entity Registrant Name	Premier Financial Corp.
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		35,538,460
Entity Central Index Key	0000946647
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Amendment Flag	false
Trading Symbol	PFC
City Area Code	419
Title of 12(b) Security	Common Stock, Par Value $0.01 Per Share
Security Exchange Name	NASDAQ
Document Quarterly Report	true
Document Transition Report	false
Entity Address, Address Line One	601 Clinton Street
Entity Address, City or Town	Defiance
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	43512
Entity File Number	0-26850
Entity Incorporation, State or Country Code	OH
Entity Tax Identification Number	34-1803915
Local Phone Number	785-8700

XML

Consolidated Condensed Statements of Financial Condition - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Cash and cash equivalents:
Cash and amounts due from depository institutions	$ 62,083	$ 54,858
Interest-bearing deposits	91,683	106,708
Cash and cash equivalents, federal funds sold	153,766	161,566
Securities available-for-sale, carried at fair value	1,219,365	1,206,260
Equity securities	13,454	14,097
Loans held for sale, carried at fair value	153,498	162,947
Loans receivable, net of allowance for credit losses of $67,195 at March 31, 2022 and $66,468 at December 31, 2021, respectively	5,321,136	5,229,700
Mortgage servicing rights	20,715	19,538
Accrued interest receivable	21,765	20,767
Federal Home Loan Bank stock	15,332	11,585
Bank owned life insurance	167,763	166,767
Premises and equipment	54,684	55,602
Real estate and other assets held for sale	253	171
Goodwill	317,948	317,948
Core deposit and other intangibles	22,691	24,129
Other assets	108,510	90,325
Total assets	7,590,880	7,481,402
Liabilities:
Deposits	6,317,235	6,282,051
Advances from the Federal Home Loan Bank	150,000
Subordinated debentures	85,008	84,976
Advance payments by borrowers	20,332	24,716
Reserve for credit losses - unfunded commitments	5,340	5,031
Other liabilities	69,669	61,132
Total liabilities	6,647,584	6,457,906
Stockholders’ equity:
Preferred stock, $.01 par value per share: 4,963,000 shares authorized; no shares issued
Common stock, $.01 par value per share: 50,000,000 shares authorized; 43,297,260 and 43,297,260 shares issued and 36,978,151 and 37,291,480 shares outstanding at September 30, 2021 and December 31, 2020, respectively	306	306
Additional paid-in capital	691,350	691,132
Accumulated other comprehensive income, net of tax of $438 and $3,988, respectively	(75,497)	(3,428)
Retained earnings	459,087	443,517
Treasury stock, at cost, 7,676,682 shares at March 31, 2022 and 6,913,647 shares at December 31, 2021	131,950	108,031
Total stockholders’ equity	943,296	1,023,496
Total liabilities and stockholders’ equity	$ 7,590,880	$ 7,481,402

XML

Consolidated Condensed Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Loans receivable, allowance (in dollars)	$ 67,195	$ 66,468
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	4,963,000	4,963,000
Preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	50,000,000	50,000,000
Common Stock, Shares, Issued	43,297,260	43,297,260
Common stock, shares outstanding	35,620,578	36,383,613
Accumulated other comprehensive income, tax effect (in dollars)	$ (20,069)	$ (912)
Treasury stock, shares	7,676,682	6,913,647
Cumulative Preferred Stock
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	37,000	37,000
Preferred stock, shares issued	0	0

XML

Consolidated Condensed Statements of Income - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Interest Income
Loans	$ 55,241,000	$ 57,565,000
Investment securities:
Taxable	4,610,000	2,782,000
Non-taxable	869,000	900,000
Interest-bearing deposits	46,000	66,000
FHLB stock dividends	59,000	59,000
Total interest income	60,825,000	61,372,000
Interest Expense
Deposits	2,222,000	4,164,000
FHLB advances and other	13,000	0
Subordinated debentures	696,000	695,000
Total interest expense	2,931,000	4,859,000
Net interest income	57,894,000	56,513,000
Credit loss expense (benefit) - loans and leases	626,000	(7,514,000)
Credit loss expense - unfunded commitments	309,000	551,000
Net interest income after credit (benefit) loss expense	56,959,000	63,476,000
Non-interest Income
Service fees and other charges	6,000,000	5,469,000
Insurance commissions	4,639,000	4,882,000
Mortgage banking income	4,252,000	10,533,000
Gain on sale of securities available for sale	0	516,000
Gain (loss) on equity securities	(643,000)	1,610,000
Wealth management income	1,477,000	1,757,000
Income from Bank Owned Life Insurance	996,000	1,168,000
Other non-interest income	150,000	340,000
Total non-interest income	16,871,000	26,275,000
Non-interest Expense
Compensation and benefits	25,541,000	21,997,000
Occupancy	3,700,000	4,112,000
FDIC insurance premium	593,000	898,000
Financial institutions tax	1,191,000	1,190,000
Data processing	3,335,000	3,382,000
Amortization of intangibles	1,438,000	1,623,000
Other non-interest expense	5,505,000	5,601,000
Total non-interest expense	41,303,000	38,803,000
Income before income taxes	32,527,000	50,948,000
Income tax expense	6,170,000	9,952,000
Net income	$ 26,357,000	$ 40,996,000
Earnings per common share
Basic	$ 0.73	$ 1.10
Diluted	$ 0.73	$ 1.10

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Consolidated Condensed Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 26,357	$ 40,996
Other comprehensive (loss) income:
Unrealized (losses) gains on securities available for sale	(74,193)	(19,112)
Reclassification adjustment for securities gains (losses) included in net income	0	(516)
Income tax effect	15,580	4,122
Net of tax amount	(58,613)	(15,506)
Unrealized gain/(loss) on balance sheet swap	(16,241)
Reclassification adjustment for cash flow hedge derivatives gain included in net income	(793)
Income tax effect	3,578
Net of tax amount	(13,456)
Total other comprehensive income (loss)	(72,069)	(15,506)
Comprehensive income (loss)	$ (45,712)	$ 25,490

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Consolidated Statement of Changes in Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Income [Member]	Retained Earnings [Member]	Treasury Stock [Member]
Balance at Dec. 31, 2020	$ 982,276	$ 306	$ 689,390	$ 15,004	$ 356,414	$ (78,838)
Balance (in shares) at Dec. 31, 2020		37,291,480
Net income (loss)	40,996				40,996
Other comprehensive income (loss)	(15,506)			(15,506)
Deferred compensation plan			51			(51)
Deferred compensation plan (in shares)		7,911
Stock based compensation expenses	551		551
Vesting of incentive plans			(82)			82
Vesting of incentive plans (in shares)		6,124
Shares issued under stock option plan	8					8
Shares issued under stock option plan (in shares)		600
Restricted share issuance			(183)			183
Restricted share issuance (in shares)		13,708
Restricted share forfeitures	(118)		20			(138)
Restricted share forfeitures (in shares)		5,779
Shares repurchased	(1,078)					(1,078)
Shares repurchased (In Shares)		39,200
Common stock dividend payment	(8,943)				(8,943)
Balance at Mar. 31, 2021	998,186	$ 306	689,747	(502)	388,467	(79,832)
Balance (in shares) at Mar. 31, 2021		37,274,844
Balance at Dec. 31, 2021	1,023,496	$ 306	691,132	(3,428)	443,517	(108,031)
Balance (in shares) at Dec. 31, 2021		36,383,613
Net income (loss)	26,357				26,357
Other comprehensive income (loss)	(72,069)			(72,069)
Deferred compensation plan			(14)			14
Deferred compensation plan (in shares)		9,933
Vesting of incentive plans	1,006		760			246
Vesting of incentive plans (in shares)		5,660
Restricted share issuance	(246)		(597)			351
Restricted share issuance (in shares)		19,936
Restricted share forfeitures	(216)		69			(285)
Restricted share forfeitures (in shares)		5,398
Shares repurchased	(24,245)					(24,245)
Shares repurchased (In Shares)		793,166
Common stock dividend payment	(10,787)				(10,787)
Balance at Mar. 31, 2022	$ 943,296	$ 306	$ 691,350	$ (75,497)	$ 459,087	$ (131,950)
Balance (in shares) at Mar. 31, 2022		35,620,578

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Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement Of Stockholders Equity [Abstract]
Dividend payment per share	$ 0.30	$ 0.24

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Consolidated Condensed Statements of Cash Flows - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Operating Activities
Net income (loss)	$ 26,357,000	$ 40,996,000
Items not requiring (providing) cash:
Credit loss expense (benefit)	935,000	(6,963,000)
Depreciation	1,466,000	1,647,000
Amortization of premium and discounts on loans, securities, deposits and debt obligations	1,882,000	143,000
Amortization of mortgage servicing rights, net of impairment charges/recoveries	170,000	(2,976,000)
Amortization of intangibles	1,438,000	1,623,000
Change in deferred taxes	193,000	0
Proceeds from the sale of loans held for sale	122,952,000	258,544,000
Originations of loans held for sale	(112,308,000)	(249,607,000)
Mortgage banking gain, net	(2,543,000)	(5,640,000)
Gain/loss on sale / write-down of real estate and other assets held for sale	(6,000)	6,000
Loss (gain) on sale of available for sale securities	0	(516,000)
Loss (gain) on equity securities	643,000	(1,610,000)
Stock based compensation expense	760,000	551,000
Restricted stock forfeitures for taxes and option exercises	(216,000)	(110,000)
Income from bank owned life insurance	(996,000)	(1,168,000)
Changes in:
Accrued interest receivable and other assets	(20,838,000)	(9,833,000)
Other liabilities	12,124,000	(744,000)
Net cash provided by (used by) operating activities	32,013,000	24,343,000
Investing Activities
Proceeds from maturities, calls and pay-downs of available-for-sale securities	32,299,000	41,123,000
Proceeds from sale of available-for-sale securities	0	22,380,000
Proceeds from sale of premises and equipment, real estate and other assets held for sale	44,000	117,000
Purchases of available-for-sale securities	(122,459,000)	(267,079,000)
Purchases of equity securities	0	(11,053,000)
Net change in Federal Home Loan Bank stock	(3,747,000)	6,698,000
Purchases of premises and equipment, net	(548,000)	(120,000)
Proceeds from bank owned life insurance	0	892,000
Net (decrease) increase in loans receivable	(91,416,000)	33,669,000
Net cash used by investing activities	(185,827,000)	(173,373,000)
Financing Activities
Net increase in deposits and advance payments by borrowers	31,046,000	303,532,000
Net change in Federal Home Loan Bank advances	150,000,000	0
Net cash paid for repurchase of common stock	(24,245,000)	(1,078,000)
Cash dividends paid on common stock	(10,787,000)	(8,943,000)
Net cash provided by financing activities	146,014,000	293,511,000
Increase (decrease) in cash and cash equivalents	(7,800,000)	144,481,000
Cash and cash equivalents at beginning of period	161,566,000	159,266,000
Cash and cash equivalents at end of period	153,766,000	303,747,000
Supplemental cash flow information:
Interest paid	$ 3,430,000	5,425,000
Income taxes paid		0
Initial recognition of right-of-use asset		500,000
Initial recognition of lease liability		500,000
Transfers from loans to real estate and other assets held for sale		$ 54,000

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Basis of Presentation

3 Months Ended

Mar. 31, 2022

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Basis of Presentation

1. Basis of Presentation

Premier Financial Corp. (“Premier” or the “Company”) is a bank holding company that conducts business through its wholly-owned subsidiaries, Premier Bank ("Bank"), First Insurance Group of the Midwest, Inc. (“First Insurance”), PFC Risk Management Inc. (“PFC Risk Management”) and PFC Capital, LLC (“PFC Capital”). All significant intercompany transactions and balances are eliminated in consolidation. Premier’s stock is traded on the NASDAQ Global Select Market under the ticker PFC.

The Bank is primarily engaged in community banking. It attracts deposits from the general public through its offices and website, and uses those and other available sources of funds to originate residential real estate loans, commercial real estate loans, commercial loans, home improvement and home equity loans and consumer loans. In addition, the Bank invests in U.S. Treasury and federal government agency obligations, obligations of states and political subdivisions, mortgage-backed securities that are issued by federal agencies, collateralized mortgage obligations (“CMOs”), and corporate bonds. The Bank’s deposits are insured by the Federal Deposit Insurance Corporation (“FDIC”). The Bank is a member of the Federal Home Loan Bank (“FHLB”) System.

PFC Capital was formed as an Ohio limited liability company in 2016 for the purpose of providing mezzanine funding for customers. Mezzanine loans are offered by PFC Capital to customers in the Company’s market area and are expected to be repaid from the cash flow from operations of the business.

First Insurance is an insurance agency that conducts business throughout Premier’s markets. First Insurance offers property and casualty insurance, life insurance and group health insurance.

PFC Risk Management is a wholly-owned insurance company subsidiary of the Company that insures the Company and its subsidiaries against certain risks unique to the operations of the Company and for which insurance may not be currently available or economically feasible in today’s insurance marketplace. PFC Risk Management pools resources with several other similar insurance company subsidiaries of financial institutions to help minimize the risk allocable to each participating insurer.

The consolidated condensed statement of financial condition at December 31, 2021, was derived from the audited financial statements at that date, which were included in Premier’s Annual Report on Form 10-K for the year ended December 31, 2021.

The accompanying consolidated condensed financial statements as of March 31, 2022, and for the three months ended March 31, 2022 and 2021 have been prepared by the Company without audit and do not include information or footnotes necessary for the complete presentation of financial condition, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States (“GAAP”). These consolidated condensed financial statements should be read in conjunction with the financial statements and notes thereto included in the 2021 Form 10-K. However, in the opinion of management, all adjustments, consisting of only normal recurring items, necessary for the fair presentation of the financial statements have been made. The results for the three months ended March 31, 2022, are not necessarily indicative of the results that may be expected for the entire year.

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Significant Accounting Policies

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Significant Accounting Policies

2. Significant Accounting Policies

Accounting Standards Update

ASU No. 2020-04: Reference Rate Reform – Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848): On March 12, 2020, the FASB issued Accounting Standards Update (ASU) 2020-4, "Reference Rate Reform (“ASC 848”): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." ASC 848 contains optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rates expected to be discontinued. The Company has formed a cross-functional project team to lead the transition from LIBOR to adoption of alternative reference rates which include Secured Overnight Financing Rate (“SOFR”). The Company identified loans that renewed prior to 2021 and began incorporating LIBOR fallback language into existing LIBOR loans. Additionally, management is utilizing the timeline guidance published by the Alternative Reference Rates Committee to develop and achieve internal milestones during this transitional period. Additionally, the Company has adhered to the International Swaps and Derivatives Association 2020 IBOR Fallbacks Protocol that was released on October 23, 2020. The Company discontinued the use of new LIBOR-based loans by December 31, 2021, according to regulatory guidelines. Legacy LIBOR-based loans will be transitioned to an alternative reference rate on or before June 30, 2023. The amendments in these updates are elective, are only available from March 12, 2020 until December 31, 2022 and their application did not have a material effect on the Company.

Accounting Standards not yet adopted

ASU No. 2022-02, Troubled Debt Restructurings and Vintage Disclosures: On March 30, 2022, the FASB issued Accounting Standards Update ("ASU") 2022-02, "Troubled Debt Restructurings and Vintage Disclosures" which will eliminate troubled debt restructuring ("TDR") accounting for entities that have adopted ASU 2016-13, the current expected credit loss ("CECL") model and will add new vintage disclosures for gross write-offs. The elimination of TDR accounting can be adopted either prospectively for loan modifications after adoption or on a modified retrospective basis that would result in a cumulative effect adjustment to retained earnings in the period of adoption. ASU 2022-02 is effective for the Company for fiscal years beginning after December 15, 2022. The Company can elect to early adopt a part or all of the update. The Company is currently assessing the impacts of adopting the guidance.

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Fair Value

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value

3. Fair Value

FASB ASC Topic 820, Fair Value Measurements, defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact.

FASB ASC Topic 820 requires the use of valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement cost). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on the best information available. In that regard, FASB ASC Topic 820 established a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows:

•Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

•Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by a correlation or other means.

•Level 3: Unobservable inputs for determining fair value of assets and liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities.

A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below.

Available-for-sale securities - Securities classified as available for sale are generally reported at fair value utilizing Level 2 inputs where the Company obtains fair value measurements from an independent pricing service that uses matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows and the bonds’ terms and conditions, among other things. Securities in Level 2 include U.S. federal government agencies, mortgage-backed securities, asset-backed securities, corporate bonds and municipal securities.

Equity securities – These securities are reported at fair value utilizing Level 1 inputs where the Company obtains fair value measurements from a broker.

Loans held for sale, carried at fair value – The Company has elected the fair value option for all loans held for sale originated after January 31, 2020.

The fair value of conventional loans held for sale is determined using the current 15 day forward contract price for either 15 or 30 year conventional mortgages (Level 2). The fair value of permanent construction loans held for sale is determined using the current 60 day forward contract price for 15 or 30 years conventional mortgages which is then adjusted for unobservable market data such as estimated fall out rates and estimated time from origination to completion of construction (Level 3).

Collateral dependent loans - Fair values for individually analyzed collateral dependent loans are generally based on appraisals obtained from licensed real estate appraisers and in certain circumstances consideration of offers obtained to purchase properties prior to foreclosure. Appraisals for commercial real estate generally use three methods to derive value: cost, sales or market comparison and income approach. The cost method bases value on the cost to replace the current property. Value of market comparison approach evaluates the sales price of similar properties in the same market area. The income approach considers net operating income generated by the property and an investor’s required return. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Comparable sales adjustments are based on known sales prices of similar type and similar use properties and duration of time that the property has been on the market to sell. Such adjustments made in the appraisal process are typically significant and result in a Level 3 classification of the inputs for determining fair value.

Real estate held for sale - Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are then reviewed monthly by members of the asset review committee for valuation changes and are accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals which may utilize a single valuation approach or a combination of approaches including cost, comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments may be significant and typically result in a Level 3 classification of the inputs for determining fair value.

Appraisals for both individually analyzed collateral-dependent loans and other real estate owned ("OREO") are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, a member of the Company’s asset quality or collections department reviews the assumptions and approaches utilized in the appraisal. Appraisal values are discounted from 0% to 30% to account for other factors that may impact the value of collateral. In determining the value of individually analyzed collateral dependent loans and OREO, significant unobservable inputs may be used, which include but are not limited to: physical condition of comparable properties sold, net operating income generated by the property and investor rates of return.

Mortgage servicing rights - On a quarterly basis, mortgage servicing rights are evaluated for impairment based upon the fair value of the rights as compared to the carrying amount. If the carrying amount of an individual tranche exceeds fair value, impairment is recorded on that tranche so that the servicing asset is carried at fair value. Fair value is determined at a tranche level based on a model that calculates the present value of estimated future net servicing income. The valuation model utilizes assumptions that market participants would use in estimating future net servicing income and are validated against available market data (Level 2).

Mortgage banking derivative - The fair value of mortgage banking derivatives are evaluated monthly based on derivative valuation models using quoted prices for similar assets adjusted for specific attributes of the commitments and other observable market data at the valuation date (Level 2).

Interest rate swaps – The Company periodically enters into interest rate swap agreements with its commercial customers who desire a fixed rate loan term that is longer than the Company is willing to extend. The Company then enters into a reciprocal swap agreement with a third party that offsets the interest rate risk from the interest rate swap extended to the customer. The interest rate swaps are derivative instruments which are carried at fair value on the statement of financial condition. The Company uses an independent third party to perform a market valuation analysis for both swap positions (Level 2).

The Company also enters into cash flow hedge derivative instruments to hedge the risk of variability in cash flows (future interest payments) attributable to changes in the contractually specified LIBOR benchmark interest rate on the Company’s floating rate loan pool. The Company uses an independent third party to perform a market valuation analysis for these derivatives (Level 2).

The following table summarizes the financial assets measured at fair value on a recurring basis segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

Assets and Liabilities Measured on a Recurring Basis

March 31, 2022	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(In Thousands)
Assets:
Available for sale securities:
Obligations of U.S. federal government corporations and         agencies	$	—	$	161,433	$	—	$	161,433
Mortgage-backed securities		—		200,824		—		200,824
Collateralized mortgage obligations		—		305,529		—		305,529
Asset-backed securities		—		213,097		—		213,097
Corporate bonds		—		72,719		—		72,719
Obligations of state and political subdivisions		—		265,764		—		265,764
Equity securities		13,454		—		—		13,454
Loans held for sale, at fair value		—		37,014		116,484		153,498
Interest rate swaps		—		2,338		—		2,338
Mortgage banking derivative		—		9,923		—		9,923
Liabilities:
Interest rate swaps		—		2,338		—		2,338
Cash flow hedge derivative		—		16,180		—		16,180

December 31, 2021	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(In Thousands)
Assets:
Available for sale securities:
Obligations of U.S. federal government corporations and   agencies	$	—	$	174,710	$	—	$	174,710
Mortgage-backed securities		—		206,751		—		206,751
Collateralized mortgage obligations		—		260,168		—		260,168
Asset-backed securities		—		220,536		—		220,536
Corporate bonds		—		70,893		—		70,893
Obligations of state and political subdivisions		—		273,202		—		273,202
Equity securities		14,097		—		—		14,097
Loans held for sale, at fair value		—		28,780		134,167		162,947
Interest rate swaps		—		1,287		—		1,287
Mortgage banking derivative		—		2,336		—		2,336
Liabilities:
Interest rate swaps		—		1,292		—		1,292

The table below presents a reconciliation of assets that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three month periods ended March 31, 2022 and 2021.

There were no securities that were measured at Level 3 for the three month periods ended March 31, 2022 and 2021.

	Construction loans held for sale
	Three Months Ended March 31,
	2022			2021
Balance of recurring Level 3 assets at beginning of period	$	134,167		$	123,029
Total gains (losses) for the period
Included in change in fair value of loans held for sale		(13,459	)		(5,568	)
Originations		36,343			34,003
Sales		(40,567	)		(16,826	)
Balance of recurring Level 3 assets at end of period	$	116,484		$	134,638

For Level 3 assets and liabilities measured at fair value on a recurring basis, the significant unobservable inputs used in the fair value measurements were as follows:

March 31, 2022	Fair Value		Valuation Technique	Unobservable Inputs	Range of Inputs
			(Dollars in Thousands)
Construction loans held for sale	$	116,484	Quoted market price	Time discount using the 60 day forward contract	0.00% - 1.52%

December 31, 2021	Fair Value		Valuation Technique	Unobservable Inputs	Range of Inputs
			(Dollars in Thousands)
Construction loans held for sale	$	134,167	Quoted market price	Time discount using the 60 day forward contract	0.00% - 1.86%

The following table summarizes the financial assets measured at fair value on a non-recurring basis segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

Assets and Liabilities Measured on a Non-Recurring Basis

March 31, 2022	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(In Thousands)
Individually analyzed loans
Residential	$	—	$	—	$	16		16
Commercial real estate		—		—		3,218		3,218
Commercial		—		—		6,998		6,998
Total individually analyzed loans		—		—		10,232		10,232
Mortgage servicing rights		—		20,715		—		20,715

December 31, 2021	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(In Thousands)
Individually analyzed loans
Commercial real estate	$	—	$	—	$	2,749	$	2,749
Commercial		—		—		8,564		8,564
Total individually analyzed loans		—		—		11,313		11,313
Mortgage servicing rights		—		19,538		—		19,538

For Level 3 assets and liabilities measured at fair value on a non-recurring basis as of March 31, 2022, the significant unobservable inputs used in the fair value measurements were as follows:

	Fair Value		Valuation Technique	Unobservable Inputs	Range of Inputs			Weighted Average
			(Dollars in Thousands)
Individually analyzed Loans-    Applies to loan classes with an    appraisal valuation	$	5,199	Appraisals which utilize sales comparison, net income and cost approach	Discounts for collection issues and changes in market conditions	20-50%				31.38	%
Individually analyzed Loans-    Applies to loan classes without    an appraisal valuation	$	5,033	Equitable Recoupment claim estimate	Discounts for collection issues		25	%		25.00	%

For Level 3 assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2021, the significant unobservable inputs used in the fair value measurements were as follows:

	Fair Value		Valuation Technique	Unobservable Inputs	Range of Inputs			Weighted Average
			(Dollars in Thousands)
Individually analyzed Loans-    Applies to loan classes with an    appraisal valuation	$	5,821	Appraisals which utilize sales comparison, net income and cost approach	Discounts for collection issues and changes in market conditions	20-50%				35.18	%
Individually analyzed Loans-    Applies to loan classes without    an appraisal valuation	$	5,492	Equitable Recoupment claim estimate	Discounts for collection issues		25	%		25.00	%

The Company has elected the fair value option for new applications accepted after January 31, 2020, and subsequently originated for residential mortgage and permanent construction loans held for sale. These loans are intended for sale and the Company believes that fair value is the best indicator of the resolution of these loans. Interest income is recorded based on the contractual terms of the loan and in accordance with the Company’s policies.

The aggregate fair value of the residential mortgage loans held for sale at March 31, 2022 and December 31, 2021 was $37.0 million and $28.8 million, respectively, and they had a contractual balance of $36.1 million and $27.7 million, respectively, for these same periods. The difference between the fair value and the contractual balance is recorded in gains and losses on the sale of loans held for sale. For the three months ended March 31, 2022, $1.5 million was recorded in losses on the sale of loans held for sale for the change in fair value. For the three months ended March 31, 2021, $4.3 million was recorded in gains on the sale of loans held for sale for the change in fair value.

The aggregate fair value of the permanent construction loans held for sale at March 31, 2022 and December 31, 2021, was $116.5 million and $134.2 million, respectively, and they had a contractual balance of $120.8 million and $125.0 million, respectively, for these same periods. The difference between the fair value and the contractual balance is recorded in gains and losses on the sale of loans held for sale. For the three months ended March 31, 2022, $13.4 million, was recorded in losses on the sale of loans held for sale for the change in

fair value. For the three months ended March 31, 2021, $5.6 million, was recorded in losses on the sale of loans held for sale for the change in fair value.

In accordance with FASB ASC Topic 825, the Fair Value Measurements tables are a comparative condensed consolidated statement of financial condition based on carrying amount and estimated fair values of financial instruments as of March 31, 2022, and December 31, 2021. Accordingly, the aggregate fair value amounts presented do not represent the underlying value to Premier.

Much of the information used to arrive at “fair value” is highly subjective and judgmental in nature and therefore the results may not be precise. Subjective factors include, among other things, estimated cash flows, risk characteristics and interest rates, all of which are subject to change. With the exception of investment securities, the Company’s financial instruments are not readily marketable and market prices do not exist. Since negotiated prices for the instruments, which are not readily marketable, depend greatly on the motivation of the buyer and seller, the amounts that will actually be realized or paid per settlement or maturity of these instruments could be significantly different.

The carrying amount of cash and cash equivalents, as a result of their short-term nature, is considered to be equal to fair value and are classified as Level 1.

It was not practicable to determine the fair value of FHLB stock due to restrictions placed on its transferability.

The Company’s loans were valued on an individual basis, with consideration given to the loans’ underlying characteristics, including account types, remaining terms (in months), annual interest rates or coupons, interest types, past delinquencies, timing of principal and interest payments, current market rates, loss exposures, and remaining balances. The model utilizes a discounted cash flow (“DCF”) approach to estimate the fair value of the loans using assumptions for the coupon rates, remaining maturities, prepayment speeds, projected default probabilities, losses given defaults, and estimates of prevailing discount rates. The DCF approach models the credit losses directly in the projected cash flows. The model applies various assumptions regarding credit, interest, and prepayment risks for the loans based on loan types, payment types and fixed or variable classifications. The estimated fair value of individually analyzed loans is based on the fair value of the collateral, less estimated cost to sell, or the present value of the loan’s expected future cash flows (discounted at the loan’s effective interest rate). All individually analyzed loans are classified as Level 3 within the valuation hierarchy.

The fair value of non-interest bearing deposits are considered equal to the amount payable on demand at the reporting date (i.e. carrying value) and are classified as Level 1. The fair value of savings, checking and certain money market accounts are equal to their carrying amounts and are a Level 1 classification. Fair values of fixed rate certificates of deposit are estimated using a DCF calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits resulting in a Level 2 classification.

The carrying value of notes payable, as a result of their short-term nature, is considered to be equal to fair value and are classified as Level 1.

The fair values of securities sold under repurchase agreements are equal to their carrying amounts resulting in a Level 1 classification. The carrying value of floating rate subordinated debentures was considered to be the carrying value as the debt is floating rate and can be prepaid at any time without penalty. The carrying value of fixed rate subordinated debt is estimated using a DCF calculation that applies interest rates currently being offered in the market to the expected maturity of the debt.

FHLB advances with maturities greater than 90 days are valued based on a DCF analysis, using interest rates currently being quoted for similar characteristics and maturities resulting in a Level 2 classification. The cost or value of any call or put options is based on the estimated cost to settle the option at March 31, 2022.

The carrying value and estimated fair values of financial instruments at March 31, 2022 and December 31, 2021, were as follows:

			Fair Value Measurements at March 31, 2022
			(In Thousands)
	Carrying Value		Total		Level 1		Level 2		Level 3
Financial Assets:
Cash and cash equivalents	$	153,766	$	153,766	$	153,766	$	—	$	—
Securities available for sale		1,219,365		1,219,365		—		1,219,365		—
Equity securities		13,454		13,454		13,454		—		—
Accrued interest receivable		21,765		21,765		21,765		—		—
Federal Home Loan Bank Stock		15,332	N/A		N/A		N/A		N/A
Loans receivable, net		5,321,136		5,319,654		—		—		5,319,654
Loans held for sale, carried at fair value		153,498		153,498		—		37,014		116,484
Financial Liabilities:
Deposits	$	6,317,235	$	6,306,616	$	5,592,560	$	714,056	$	—
Advances from Federal Home Loan Bank		150,000		150,000		—		150,000		—
Subordinated debentures		85,008		84,168		—		84,168		—

			Fair Value Measurements at December 31, 2021
			(In Thousands)
	Carrying Value		Total		Level 1		Level 2		Level 3
Financial Assets:
Cash and cash equivalents	$	161,566	$	161,566	$	161,566	$	—	$	—
Securities available for sale		1,206,260		1,206,260		—		1,206,260		—
Equity securities		14,097		14,097		14,097		—		—
Accrued interest receivable		20,767		20,767		20,767		—		—
Federal Home Loan Bank Stock		11,585	N/A		N/A		N/A		N/A
Loans receivable, net		5,229,700		5,265,689		—		—		5,265,689
Loans held for sale, carried at fair value		162,947		162,947		—		28,780		134,167
Financial Liabilities:
Deposits	$	6,282,051	$	6,280,336	$	5,481,928	$	798,408	$	—
Subordinated debentures		84,976		85,417		—		—		85,417

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Stock Compensation Plans

3 Months Ended

Mar. 31, 2022

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock Compensation Plans

4. Stock Compensation Plans

Premier has established equity based compensation plans for its directors and employees. On February 27, 2018, the Board adopted, and the shareholders approved at the 2018 Annual Shareholders Meeting, the Premier Financial Corp. 2018 Equity Incentive Plan (the “2018 Equity Plan”). The 2018 Equity Plan replaced all existing plans, although the Company’s former equity plans remain in existence to the extent there were outstanding grants thereunder at the time the 2018 Equity Plan was approved. In addition, as a result of the Merger, Premier assumed certain outstanding stock options granted under UCFC’s Amended and Restated 2007 Long-Term Incentive Plan (the “UCFC 2007 Plan”) and UCFC’s 2015 Long Term Incentive Plan, which has since been renamed as the “Premier Financial Corp. 2015 Long Term Incentive Plan” (the “2015 Plan”). Premier also assumed the 2015 Plan with respect to the available shares under the UCFC 2015 Plan as of the effective date of the Merger, with appropriate adjustments to the number of shares available to reflect the Merger. The stock options assumed from UCFC in the Merger became exercisable solely to purchase shares of Premier, with appropriate adjustments to the number of shares subject to the assumed stock options and the exercise price of such stock options and remain subject to the terms of the 2015 Plan. Besides certain options issued under the First Defiance Financial Corp. 2010 Equity Incentive Plan, all awards currently outstanding are issued under the 2018 Equity Plan or the 2015 Plan. The 2018 Equity Plan and the 2015 Plan were each amended and restated in February 2022 to align certain administrative components of the plans in addition to enhancing certain governance components. New awards will be made under either the 2018 Equity Plan or the 2015 Plan as the Company determines. The 2018 Equity Plan allows for issuance of up to 900,000 common shares through the award of options, performance stock units ("PSUs"), restricted stock awards ("RSAs"), restricted stock units ("RSUs"), stock appreciation rights ("SARs") or other stock-based awards. The 2015 Plan allows for the issuance of up to 1.2 million common shares, as adjusted for the Merger, through the award of options, RSAs, RSUs, and SARs.

The Company maintains a Short-Term Incentive Plan ("STIP"). Under the 2020, 2021 and 2022 STIPs, the participants can earn a cash payout. The final amount of benefits under the STIPs is determined as of December 31 of the same year and paid out in cash in the first quarter of the following year.

As of March 31, 2022, 35,661 options to acquire Premier shares were outstanding at option prices based on the market value of the underlying shares on the date the options were granted. All options expire ten years from the date of grant. Vested options of retirees expire on the earlier of the scheduled expiration date or one year after the retirement date.

The Company maintains Long-Term Equity Incentive Plans ("LTIP") for select members of management (the "Executive LTIP") and a Key Employee and Commercial Lender Plan (the "Key Plan").

Under the Executive LTIP, participants may earn between 20% to 50% of their salary for potential payout in the form of equity awards based on the achievement of certain corporate performance targets over a three-year period. The Company granted 80,794 PSUs to the participants in the 2021 Executive LTIP during the first quarter of 2022, which represents the maximum target award. The value of awards issued in 2021 and 2022 under the Executive LTIP will be determined individually at the end of each respective 36 month performance period ending December 31. The benefits earned under these LTIPs will be paid out in equity in the first quarter following the end of the performance period. The participants will receive all or a portion of the award if their employment is terminated by the Company without cause, by the participant in certain situations, or by death, disability or retirement.

Under the Key Plan, the participants are granted RSUs based upon the achievement of certain targets in the prior year. The participants can earn from 5% to 10% of their salary in RSUs that vest three years from the

date of grant. The Company granted 19,612 in RSAs and 17,542 RSUs in the first quarter of 2022 and 2021, respectively, as a payout under the Key Plan.

In 2022, the Company also granted 324 discretionary RSAs that vest three years from the date of grant. The grants vest over a three year period. The fair value of all granted restricted shares was determined by the stock price at the date of the grant.

The fair value of each option award is estimated on the date of grant using the Black-Scholes model. Expected volatilities are based on historical volatilities of the Company’s common shares. The Company uses historical data to estimate option exercise and post-vesting termination behavior. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant.

There were no options granted during the three months ended March 31, 2022 or 2021.

Following is stock option activity under the plans during the three months ended March 31, 2022:

	Options Outstanding		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in 000’s)
Options outstanding, January 1, 2022		35,661	$	21.72
Forfeited or cancelled		—		—
Exercised		—		—
Granted		—		—
Options outstanding, March 31, 2022		35,661	$	21.72		4.09	$	310,597
Exercisable at March 31, 2022		35,661	$	21.72		4.09	$	310,597

Proceeds, related tax benefits realized from options exercised and intrinsic value of options exercised were as follows (in thousands):

	Three Months Ended March 31,				Three Months Ended March 31,
	2022		2021		2022		2021
Proceeds of options exercised	$	—	$	8	$	—	$	8
Related tax benefit recognized		—		—		—		—
Intrinsic value of options exercised		—		11		—		11

As of March 31, 2022, there was a de minimus amount of total unrecognized compensation costs related to unvested stock options granted under the Company’s equity plans. The cost is expected to be recognized over a weighted-average period of 1.0 month.

At March 31, 2022, a total of 332,251 RSAs were outstanding. Compensation expense is recognized over the performance or vesting period. Total expense of $34,000 and $1.0 million was recorded during each of the three months ended March 31, 2022 and 2021, respectively, and approximately $181,000 and $2.7 million is included within other liabilities at March 31, 2022 and December 31, 2021, respectively, related to the cash portion of the STIPs.

	Performance Stock Units				Restricted Stock Units					Restricted Stock Awards
Unvested Shares	Shares		Weighted- Average Grant Date Fair Value		Shares			Weighted- Average Grant Date Fair Value		Shares			Weighted- Average Grant Date Fair Value
Unvested at January 1, 2022		161,674	$	28.36		51,773		$	28.44		58,260		$	29.71
Granted		80,794		30.65		—			—		19,936			30.66
Vested		—		—		(8,090	)		26.40		(27,580	)		26.93
Forfeited		—		—		(3,730	)		28.20		(786	)		31.84
Unvested at March 31, 2022		242,468	$	29.12		39,953		$	28.88		49,830		$	31.60

The maximum amount of compensation expense that may be earned for the PSUs at March 31, 2022, is approximately $6.9 million in the aggregate. However, the estimated expense that is expected to be earned as of March 31, 2022, is $4.6 million of which $1.7 million was unrecognized at March 31, 2022, and will be recognized over the remaining performance periods.

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Dividends on Common Stock

3 Months Ended

Mar. 31, 2022

Dividends Common Stock [Abstract]

Dividends on Common Stock

5. Dividends on Common Stock

Premier declared and paid a $0.30 per common stock dividend in the first quarter of 2022 and declared and paid a $0.24 per common stock dividend in the first quarter of 2021.

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Earnings Per Common Share

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Earnings Per Common Share

6. Earnings Per Common Share

Basic earnings per share are calculated using the two-class method. The two-class method is an earnings allocation formula under which earnings per share is calculated from common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings distributed and undistributed, are allocated to participating securities and common shares based on their respective rights to receive dividends. Unvested share-based payment awards that contain non-forfeitable rights to dividends are considered participating securities (i.e., unvested restricted stock), not subject to performance based measures.

The following table sets forth the computation of basic and diluted earnings per common share:

	Three Months Ended March 31,
	2022		2021
	(In Thousands, except per share data)
Basic Earnings Per Share:
Net income available to common shareholders	$	26,357	$	40,996
Less: income allocated to participating securities		35		43
Net income allocated to common shareholders		26,322		40,953
Weighted average common shares outstanding including    participating securities		36,026		37,332
Less: Participating securities		48		39
Average common shares		35,978		37,293
Basic earnings per common share	$	0.73	$	1.10
Diluted Earnings Per Share:
Net income allocated to common shareholders	$	26,322	$	40,953
Weighted average common shares outstanding for basic earnings    per common share		35,978		37,293
Add: Dilutive effects of stock options and restricted stock units		112		64
Average shares and dilutive potential common shares		36,090		37,357
Diluted earnings per common share	$	0.73	$	1.10

There were 16,206 shares for the three months ended March 31, 2022 that were excluded from the diluted earnings per common share calculation. There were no shares for the three months ended March 31, 2021 that were excluded from the dilutive earnings per common share calculation as no shares were anti-dilutive.

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Investment Securities

3 Months Ended

Mar. 31, 2022

Marketable Securities [Abstract]

Investment Securities

7. Investment Securities

The following is a summary of available-for-sale securities:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Loss			Fair Value
	(In Thousands)
At March 31, 2022
Available-for-Sale Securities:
Obligations of U.S. government corporations and agencies	$	174,400	$	3	$	(12,970	)	$	161,433
Mortgage-backed securities		215,800		114		(15,090	)		200,824
Collateralized mortgage obligations		326,650		—		(21,122	)		305,528
Asset-backed securities		216,998		487		(4,388	)		213,097
Corporate bonds		74,395		158		(1,834	)		72,719
Obligations of state and political subdivisions		290,408		1,577		(26,221	)		265,764
Total Available-for-Sale	$	1,298,651	$	2,339	$	(81,625	)	$	1,219,365

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Loss			Fair Value
	(In Thousands)
At December 31, 2021
Available-for-sale
Obligations of U.S. government corporations and agencies	$	174,644	$	984	$	(918	)	$	174,710
Mortgage-backed securities		208,281		851		(2,381	)		206,751
Collateralized mortgage obligations		264,541		363		(4,736	)		260,168
Asset-backed securities		221,545		610		(1,619	)		220,536
Corporate bonds		70,008		1,160		(275	)		70,893
Obligations of state and political subdivisions		272,334		5,898		(5,030	)		273,202
Total Available-for-Sale	$	1,211,353	$	9,866	$	(14,959	)	$	1,206,260

The amortized cost and fair value of the investment securities portfolio at March 31, 2022, are shown below by contractual maturity. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. For purposes of the maturity table, mortgage-backed securities (“MBS”), CMOs and asset-backed securities (“ABS”), which are not due at a single maturity date, have not been allocated over the maturity groupings. These securities may mature earlier than their weighted-average contractual maturities because of principal prepayments.

	Available-for-Sale
	Amortized Cost		Fair Value
	(In Thousands)
Due in one year or less	$	3,230	$	3,235
Due after one year through five years		43,732		42,536
Due after five years through ten years		205,366		195,580
Due after ten years		286,875		258,565
MBS/CMO/ABS		759,448		719,449
	$	1,298,651	$	1,219,365

Investment securities with a carrying amount of $555.0 million and $564.4 million at March 31, 2022 and December 31, 2021, respectively, were pledged as collateral on public deposits.

The following tables summarize Premier’s securities that were in an unrealized loss position at March 31, 2022, and December 31, 2021:

	Duration of Unrealized Loss Position
	Less than 12 Months					12 Months or Longer					Total
	Fair Value		Gross Unrealized Loss			Fair Value		Gross Unrealized Loss			Fair Value		Unrealized Loss
	(In Thousands)
At March 31, 2022
Available-for-sale securities:
Obligations of U.S. government corporations and agencies	$	152,407	$	(11,201	)	$	8,503	$	(1,769	)	$	160,910	$	(12,970	)
Mortgage-backed securities		134,953		(9,319	)		61,098		(5,771	)		196,051		(15,090	)
Collateralized mortgage obligations		300,681		(20,737	)		4,847		(385	)		305,528		(21,122	)
Asset-backed securities		167,305		(4,255	)		15,634		(133	)		182,939		(4,388	)
Corporate bonds		60,809		(1,786	)		1,212		(48	)		62,021		(1,834	)
Obligations of state and political subdivisions		125,688		(13,129	)		73,619		(13,092	)		199,307		(26,221	)
Total available-for-sale	$	941,843	$	(60,427	)	$	164,913	$	(21,198	)	$	1,106,756	$	(81,625	)

	Duration of Unrealized Loss Position
	Less than 12 Months					12 Months or Longer					Total
	Fair Value		Gross Unrealized Loss			Fair Value		Gross Unrealized Loss			Fair Value		Unrealized Loss
	(In Thousands)
At December 31, 2021
Available-for-sale securities:
Obligations of U.S. government corporations and agencies	$	73,810	$	(918	)	$	—	$	—		$	73,810	$	(918	)
Mortgage-backed securities-residential		167,379		(2,048	)		13,689		(333	)		181,068		(2,381	)
Collateralized mortgage obligations		222,134		(4,736	)		—		—			222,134		(4,736	)
Asset-backed securities		140,226		(1,589	)		2,705		(30	)		142,931		(1,619	)
Corporate bonds		24,173		(270	)		504		(5	)		24,677		(275	)
Obligations of state and political subdivisions		99,199		(3,355	)		34,548		(1,675	)		133,747		(5,030	)
Total available-for-sale	$	726,921	$	(12,916	)	$	51,446	$	(2,043	)	$	778,367	$	(14,959	)

The Company realized no gains from the sale of available-for-sale securities in the three month period ending March 31, 2022. For the three months ended March 31, 2021, the Company had $516,000 in realized gains from the sale of investment securities.

ASU 2016-13 makes targeted improvements to the accounting for credit losses on securities available- for-sale. The concept of other than-temporarily impaired has been replaced with the allowance for credit losses. Unlike securities held to maturity, securities available-for-sale are evaluated on an individual level and pooling of securities is not allowed.

Quarterly, the Company evaluates if any security has a fair value less than its amortized cost. Once these securities are identified, in order to determine whether a decline in fair value resulted from a credit loss or other factors, the Company performs further analysis as outlined below:

•Review the extent to which the fair value is less than the amortized cost and observe the security’s lowest credit rating as reported by third-party credit ratings companies.

•Any securities that are downgraded by a third party ratings company above would be subjected to additional analysis that may include, but is not limited to: changes in market interest rates, changes in securities credit ratings, security type, service area economic factors, financial performance of the issuer/or obligor of the underlying issue and third-party guarantee.

•If the Company determines that a credit loss exists, the credit portion of the allowance will be measured using a DCF analysis using the effective interest rate as of the security’s purchase date. The amount of credit loss the Company records will be limited to the amount by which the amortized cost exceeds the fair value. As of March 31, 2022, management had determined that no credit loss exists.

At March 31, 2022, and December 31, 2021, the Company held preferred and common stock of various bank holding companies totaling $13.4 million and $14.1 million, respectively. During the three months ended March 31, 2022, $643,000 of unrealized losses were recorded within gain (loss) on equity securities on the Consolidated Condensed Statements of Income. During the three months ended March 31, 2021, $1.6 million of unrealized gains were recorded within gain(loss) on equity securities on the Consolidated Condensed Statements of Income.

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Loans

3 Months Ended

Mar. 31, 2022

Loans And Leases Receivable Net Reported Amount [Abstract]

Loans

8. Loans

Loan segments have been identified by evaluating the portfolio based on collateral and credit risk characteristics. Loans receivable consist of the following:

	March 31, 2022			December 31, 2021
	(In Thousands)
Real Estate:
Residential	$	1,222,057		$	1,167,466
Commercial		2,495,469			2,450,349
Construction		883,712			862,815
		4,601,238			4,480,630
Other Loans:
Commercial		910,553			895,638
Home equity and improvement		261,176			264,354
Consumer finance		132,294			126,417
		1,304,023			1,286,409
Loans before deferred loan origination fees and costs		5,905,261			5,767,039
Deduct:
Undisbursed construction loan funds		(525,545	)		(477,890	)
Net deferred loan origination fees and costs		8,615			7,019
Allowance for credit losses		(67,195	)		(66,468	)
Total loans	$	5,321,136		$	5,229,700

The Company has responded to the pandemic in numerous ways, including by actively participating in the Paycheck Protection Program (“PPP”) and distributing $636.9 million to small businesses in our markets. As of March 31, 2022, the Company had $18.7 million in PPP loans, which remained unpaid and were included in commercial loans in the above loan table. As of December 31, 2021, the Company had $58.9 million in PPP loans.

The following table discloses allowance for credit loss (“ACL”) activity for the three months ended March 31, 2022 and 2021 by portfolio segment (in thousands):

Three Months Ended March 31, 2022	Residential Real Estate			Commercial Real Estate			Construction			Commercial			Home Equity and Improvement			Consumer Finance			Total
Beginning Allowance	$	12,029		$	32,399		$	3,004		$	13,410		$	4,221		$	1,405		$	66,468
Charge-Offs		(140	)		(7	)		—			(10	)		(29	)		(103	)		(289	)
Recoveries		81			59			—			102			34			114			390
Provisions		(330	)		1,750			(391	)		319			(307	)		(415	)		626
Ending Allowance	$	11,640		$	34,201		$	2,613		$	13,821		$	3,919		$	1,001		$	67,195

Three Months Ended March 31, 2021	Residential Real Estate			Commercial Real Estate			Construction		Commercial			Home Equity and Improvement			Consumer Finance			Total
Beginning Allowance	$	17,534		$	43,417		$	2,741	$	11,665		$	4,739		$	1,983		$	82,079
Charge-Offs		—			—			—		(70	)		(3	)		(36	)		(109	)
Recoveries		8			36			—		198			29			27			298
Provisions		(34	)		(8,181	)		35		398			416			(148	)		(7,514	)
Ending Allowance	$	17,508		$	35,272		$	2,776	$	12,191		$	5,181		$	1,826		$	74,754

The following table presents the amortized cost basis of collateral-dependent loans by class of loans and collateral type as of March 31, 2022 and December 31, 2021 (in thousands):

	March 31, 2022
	Real Estate		Equipment and Machinery		Inventory and Receivables		Vehicles		Total
Real Estate:
Residential	$	78	$	—	$	—	$	—	$	78
Commercial		17,592		—		—		—		17,592
Construction		—		—		—		—		—
Other Loans:
Commercial		1,573		—		13,711		21		15,305
Home equity and improvement		—		—		—		—		—
Consumer finance		—		—		—		—		—
Total	$	19,243	$	—	$	13,711	$	21	$	32,975

	December 31, 2021
	Real Estate		Equipment and Machinery		Inventory and Receivables		Vehicles		Total
Real Estate:
Residential	$	226	$	—	$	—	$	—	$	226
Commercial		18,399		—		—		—		18,399
Construction		—		—		—		—		—
Other Loans:
Commercial		1,574		160		14,023		25		15,782
Home equity and improvement		—		—		—		—		—
Consumer finance		—		—		—		—		—
Total	$	20,199	$	160	$	14,023	$	25	$	34,407

Non-performing loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually analyzed loans. All loans greater than 90 days past due are placed on non-accrual status. The following table presents the current balance of the aggregate amounts of non-performing assets, comprised of non-performing loans and real estate owned as of the dates indicated:

	March 31, 2022		December 31, 2021
	(In Thousands)
Non-accrual loans with reserve	$	32,930	$	35,480
Non-accrual loans without reserve		14,368	$	12,534
Loans 90 days plus past due and still accruing		—		—
Total non-performing loans		47,298		48,014
Real estate and other assets held for sale		253		171
Total non-performing assets	$	47,551	$	48,185
Troubled debt restructuring, still accruing	$	6,287	$	7,768

The following table presents the aging of the amortized cost in past due and non-accrual loans as of March 31, 2022, by class of loans (in thousands):

	Current		30 - 59 days		60 - 89 days		90 + days		Total Past Due		Total Non- Accrual
Real Estate:
Residential	$	1,202,041	$	307	$	3,327	$	7,654	$	11,288	$	9,280
Commercial		2,486,865		549		6		8,059		8,614		14,423
Construction		358,167		—		—		—		—		—
Other Loans:
Commercial		890,418		10,371		—		936		11,307		11,386
Home equity and improvement		255,180		756		334		1,771		2,861		2,171
Consumer finance		129,659		1,530		598		1,959		4,087		2,100
PCD		21,924		173		703		5,044		5,920		7,938
Total Loans	$	5,344,254	$	13,686	$	4,968	$	25,423	$	44,077	$	47,298

The following table presents the aging of the recorded investment in past due and non-accrual loans as of December 31, 2021, by class of loans (in thousands):

	Current		30 - 59 days		60 - 89 days		90 + days		Total Past Due		Total Non Accrual
Real Estate:
Residential	$	1,144,533	$	234	$	5,340	$	7,487	$	13,061	$	9,034
Commercial		2,439,552		96		847		7,168		8,111		14,621
Construction		383,136		43		1,746		—		1,789		—
Other Loans:
Commercial		884,025		42		35		867		944		11,531
Home equity and improvement		257,055		1,851		408		1,634		3,893		2,051
Consumer finance		124,073		1,112		819		1,728		3,659		1,873
PCD		25,111		225		1,005		5,996		7,226		8,904
Total Loans	$	5,257,485	$	3,603	$	10,200	$	24,880	$	38,683	$	48,014

Troubled Debt Restructurings

As of March 31, 2022, and December 31, 2021, the Company had a recorded investment in troubled debt restructurings (“TDRs”) of $10.6 million and $11.9 million, respectively. The Company allocated $358,000 and $378,000 of specific reserves to those loans at March 31, 2022, and December 31, 2021, respectively, and had committed to lend additional amounts totaling up to $319,000 and $348,000 at March 31, 2022, and December 31, 2021, respectively.

The Company had previously worked with borrowers that were impacted by the COVID-19 pandemic by providing modifications to include either interest only deferral or principal and interest deferral. These modifications ranged from one to nine months. As of March 31, 2022 and December 31, 2021, the Company had no active deferrals.

The Company offers various types of concessions when modifying a loan, however, forgiveness of principal is rarely granted. Each TDR is uniquely designed to meet the specific needs of the borrower. Commercial and industrial loans modified in a TDR often involve temporary interest-only payments, term extensions and converting revolving credit lines to term loans. Additional collateral or an additional guarantor is often requested when granting a concession. Commercial mortgage loans modified in a TDR often involve temporary interest-only payments, re-amortization of remaining debt in order to lower payments and sometimes reducing the interest rate lower than the current market rate. Residential mortgage loans modified in a TDR are comprised of loans where monthly payments are lowered, either through interest rate reductions or principal only payments for a period of time, to accommodate the borrowers’ financial needs, interest is capitalized into principal, or the term and amortization are extended. Home equity modifications are made infrequently and usually involve providing an interest rate that is lower than the borrower would be able to obtain due to credit issues. All retail loans where the borrower is in bankruptcy are classified as TDRs regardless of whether or not a concession is made.

Of the loans modified in a TDR as of March 31, 2022, $4.3 million were on non-accrual status and partial charge-offs have in some cases been taken against the outstanding balance. Loans modified as a TDR may have the financial effect of increasing the allowance associated with the loan. If the loan is determined to be collateral dependent, the estimated fair value of the collateral, less any selling costs is used to determine if there is a need for a specific allowance or charge-off. If the loan is determined to be cash flow dependent, the allowance is measured based on the present value of expected future cash flows discounted at the loan’s pre-modification effective interest rate.

The following tables present loans by class modified as TDRs that occurred during the three months ended March 31, 2022 and 2021:

	Loans Modified as a TDR for the Three Months Ended March 31, 2022 ($ in thousands)
Troubled Debt Restructurings	Number of Loans		Recorded Investment (as of period end)
Real Estate:
Residential		1	$	252
Commercial		—		—
Construction		—		—
Other Loans:
Commercial		—		—
Home equity and improvement		—		—
Consumer finance		2		20
Total		3	$	272

The loans described above increased the ACL by $1,000 in the three months ended March 31, 2022.

	Loans Modified as a TDR for the Three Months Ended March 31, 2021 ($ in thousands)
Troubled Debt Restructurings	Number of Loans		Recorded Investment (as of period end)
Real Estate:
Residential		2	$	150
Commercial		—		—
Construction		—		—
Other Loans:
Commercial		3		709
Home equity and improvement		—		—
Consumer finance		—		—
Total		5	$	859

The loans described above increased the ACL by $6,000 in the three months ended March 31, 2021.

In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed on the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. There were no TDRs that subsequently defaulted as of March 31, 2022 or March 31, 2021.

Credit Quality Indicators

Loans are categorized into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. Loans are analyzed individually by classifying the loans by credit risk. This analysis includes all non-homogeneous loans, such as commercial and

commercial real estate loans and certain homogenous mortgage, home equity and consumer loans. This analysis is performed on a quarterly basis. Premier uses the following definitions for risk ratings:

Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution's credit position at some future date.

Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. As of March 31, 2022, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows (in thousands):

Class	Unclassified		Special Mention		Substandard		Doubtful		Total classified		Total
Real Estate:
Residential	$	1,202,103	$	1,295	$	9,931	$	-	$	9,931	$	1,213,329
Commercial		2,376,266		93,550		25,663		—		25,663		2,495,479
Construction		358,167		—		—		—		—		358,167
Other Loans:
Commercial		869,383		20,558		11,784		—		11,784		901,725
Home equity and improvement		255,883		—		2,158		—		2,158		258,041
Consumer finance		131,647		—		2,099		—		2,099		133,746
PCD		19,110		98		8,636		—		8,636		27,844
Total Loans	$	5,212,559	$	115,501	$	60,271	$	—	$	60,271	$	5,388,331

As of December 31, 2021, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows (in thousands):

Class	Unclassified		Special Mention		Substandard		Doubtful		Total classified		Total
Real Estate:
Residential	$	1,146,212	$	1,316	$	10,066	$	-	$	10,066	$	1,157,594
Commercial		2,324,846		93,676		29,141		—		29,141		2,447,663
Construction		365,403		19,522		—		—		—		384,925
Other Loans:
Commercial		856,402		14,815		13,752		—		13,752		884,969
Home equity and improvement		258,914		—		2,034		—		2,034		260,948
Consumer finance		125,879		—		1,853		—		1,853		127,732
PCD		19,547		101		12,689		—		12,689		32,337
Total Loans	$	5,097,203	$	129,430	$	69,535	$	—	$	69,535	$	5,296,168

The tables below present the amortized cost basis of loans by credit quality indicator and class of loans as of March 31, 2022 and December 31, 2021 (in thousands):

	Term of loans by origination
	2022		2021		2020		2019		2018		Prior		Revolving Loans		Total
As of March 31, 2022
Real Estate
Residential:
Risk Rating
Pass	$	87,717	$	247,594	$	355,860	$	104,958	$	59,789	$	344,704	$	1,481	$	1,202,103
Special Mention		—		—		187		37		—		158		913		1,295
Substandard		—		777		957		779		1,178		6,240		—		9,931
Doubtful		—		—		—		—		—		—		—		—
Total	$	87,717	$	248,371	$	357,004	$	105,774	$	60,967	$	351,102	$	2,394	$	1,213,329
Commercial:
Risk Rating
Pass	$	117,640	$	511,210	$	513,331	$	358,355	$	228,407	$	636,090	$	11,233	$	2,376,266
Special Mention		2,380		292		—		2,111		17,094		71,000		673		93,550
Substandard		—		195		559		4,788		4,946		14,949		226		25,663
Doubtful		—		—		—		—		—		—		—		—
Total	$	120,020	$	511,697	$	513,890	$	365,254	$	250,447	$	722,039	$	12,132	$	2,495,479
Construction:
Risk Rating
Pass	$	196,348	$	86,533	$	53,706	$	-	$	727	$	-	$	20,853	$	358,167
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—				—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total	$	196,348	$	86,533	$	53,706	$	-	$	727	$	-	$	20,853	$	358,167
Other Loans
Commercial:
Risk Rating
Pass	$	67,089	$	240,506	$	125,299	$	74,398	$	41,778	$	34,471	$	285,842	$	869,383
Special Mention		2,857		—		2,117		3,919		225		5,738		5,702		20,558
Substandard		—		123		10,347		22		249		216		827		11,784
Doubtful		—		—		—		—		—		—		—		—
Total	$	69,946	$	240,629	$	137,763	$	78,339	$	42,252	$	40,425	$	292,371	$	901,725
Home equity and Improvement:
Risk Rating
Pass	$	3,622	$	23,965	$	6,444	$	4,267	$	2,524	$	35,008	$	180,053	$	255,883
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		28		37		790		1,303		2,158
Doubtful		—		—		—		—		—		—		—		—
Total	$	3,622	$	23,965	$	6,444	$	4,295	$	2,561	$	35,798	$	181,356	$	258,041
Consumer Finance:
Risk Rating
Pass	$	21,501	$	44,590	$	23,257	$	19,959	$	7,877	$	5,528	$	8,935	$	131,647
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		187		980		717		125		86		4		2,099
Doubtful		—		—		—		—		—		—		—		—
Total	$	21,501	$	44,777	$	24,237	$	20,676	$	8,002	$	5,614	$	8,939	$	133,746
PCD:
Risk Rating
Pass	$	-	$	-	$	-	$	163	$	1,733	$	13,739	$	3,475	$	19,110
Special Mention		—		—		—		—		—		98		—		98
Substandard		—		—		—		53		26		5,854		2,703		8,636
Doubtful		—		—		—		—		—		—		—		—
Total	$	-	$	-	$	-	$	216	$	1,759	$	19,691	$	6,178	$	27,844

	Term of loans by origination
	2020		2019		2018		2017		2016		Prior		Revolving Loans		Total
As of December 31, 2021
Real Estate
Residential:
Risk Rating
Pass	$	219,006	$	373,439	$	112,781	$	65,544	$	71,794	$	301,735	$	1,913	$	1,146,212
Special Mention		—		190		—		—		59		109		958		1,316
Substandard		465		780		1,198		1,006		2,095		4,522		—		10,066
Doubtful		—		—		—		—		—		—		—		—
Total	$	219,471	$	374,409	$	113,979	$	66,550	$	73,948	$	306,366	$	2,871	$	1,157,594
Commercial:
Risk Rating
Pass	$	514,333	$	493,575	$	388,117	$	230,734	$	237,712	$	451,113	$	9,262	$	2,324,846
Special Mention		294		5,349		5,533		11,055		49,993		20,662		790		93,676
Substandard		172		570		4,920		5,525		62		17,665		227		29,141
Doubtful		—		—		—		—		—		—		—		—
Total	$	514,799	$	499,494	$	398,570	$	247,314	$	287,767	$	489,440	$	10,279	$	2,447,663
Construction:
Risk Rating
Pass	$	198,221	$	100,606	$	55,707	$	10,039	$	685	$	145	$	-	$	365,403
Special Mention		—		12,500		—		5,996		1,026		—		—		19,522
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total	$	198,221	$	113,106	$	55,707	$	16,035	$	1,711	$	145	$	-	$	384,925
Other Loans
Commercial:
Risk Rating
Pass	$	293,644	$	132,703	$	84,668	$	47,421	$	24,269	$	17,038	$	256,659	$	856,402
Special Mention		—		2,180		4,094		272		1,264		4,663		2,342		14,815
Substandard		136		11,550		23		288		388		131		1,236		13,752
Doubtful		—		—		—		—		—		—		—		—
Total	$	293,780	$	146,433	$	88,785	$	47,981	$	25,921	$	21,832	$	260,237	$	884,969
Home equity and Improvement:
Risk Rating
Pass	$	24,707	$	6,870	$	4,867	$	2,879	$	5,534	$	31,317	$	182,740	$	258,914
Special Mention		—		—		—		—		—		—		—		—
Substandard		15		—		28		48		27		690		1,226		2,034
Doubtful		—		—		—		—		—		—		—		—
Total	$	24,722	$	6,870	$	4,895	$	2,927	$	5,561	$	32,007	$	183,966	$	260,948
Consumer Finance:
Risk Rating
Pass	$	50,202	$	25,866	$	23,000	$	9,643	$	4,313	$	2,769	$	10,086	$	125,879
Special Mention		—		—		—		—		—		—		—		—
Substandard		196		707		619		129		67		131		4		1,853
Doubtful		—		—		—		—		—		—		—		—
Total	$	50,398	$	26,573	$	23,619	$	9,772	$	4,380	$	2,900	$	10,090	$	127,732
PCD:
Risk Rating
Pass	$	-	$	-	$	170	$	1,753	$	1,860	$	12,496	$	3,268	$	19,547
Special Mention		—		—		—		—		—		101		—		101
Substandard		—		—		67		28		3,242		6,490		2,862		12,689
Doubtful		—		—		—		—		—		—		—		—
Total	$	-	$	-	$	237	$	1,781	$	5,102	$	19,087	$	6,130	$	32,337

Allowance for Credit Losses

The Company has adopted ASU 2016-13 (Topic 326 – Credit Losses) to calculate the ACL, which requires a projection of credit loss over the contract lifetime of the credit adjusted for prepayment tendencies. This valuation account is deducted from the loans amortized cost basis to present the net amount expected to be

collected on the loan. The ACL is adjusted through the provision for credit losses and reduced by net charge offs of loans.

The credit loss estimation process involves procedures that consider the unique characteristics of the Company’s portfolio segments. These segments are further disaggregated into the loan pools for monitoring. When computing allowance levels, a model of risk characteristics, such as loss history and delinquency status, along with current conditions and a supportable forecast is used to determine credit loss assumptions.

The Company is generally utilizing two methodologies to analyze loan pools, DCF and probability of default/loss given default (“PD/LGD”).

A default can be triggered by one of several different asset quality factors including past due status, non-accrual status, TDR status or if the loan has had a charge-off. The PD/LGD utilizes charge off data from the Federal Financial Institutions Examination Council to construct a default rate. This default rate is further segmented based on the risk of the credit assigning a higher default rate to riskier credits.

The DCF methodology was selected as the most appropriate for loan segments with longer average lives and regular payment structures. The DCF model has two key components, the loss driver analysis combined with a cash flow analysis. The contractual cash flow is adjusted for PD/LGD and prepayment speed to establish a reserve level. The prepayment studies are updated quarterly by a third-party for each applicable pool. The Company estimates losses over an approximate one-year forecast period using Moody’s baseline economic forecasts, and then reverts to longer term historical loss experience over a three-year period.

The remaining life method was selected for the consumer direct loan segment since the pool contains loans with many different structures and payment streams and collateral. The weighted average remaining life uses an average annual charge-off rate applied to the contractual term, further adjusted for estimated prepayments to determine the unadjusted historical charge-off rate for the remaining balance of assets.

Portfolio Segments	Loan Pool	Methodology	Loss Drivers
Residential real estate	1-4 Family nonowner occupied	DCF	National unemployment
	1-4 Family owner occupied	DCF	National unemployment
Commercial real estate	Commercial real estate nonowner occupied	DCF	National unemployment
	Commercial real estate owner occupied	DCF	National unemployment
	Multi Family	DCF	National unemployment
	Agriculture Land	DCF	National unemployment
	Other commercial real estate	DCF	National unemployment
Construction secured by real estate	Construction Other	PD/LGD	Call report loss history
	Construction Residential	PD/LGD	Call report loss history
Commercial	Commercial working capital	PD/LGD	Call report loss history
	Agriculture production	PD/LGD	Call report loss history
	Other commercial	PD/LGD	Call report loss history
Home equity and improvement	Home equity and improvement	PD/LGD	Call report loss history
Consumer finance	Consumer direct	Remaining life	Call report loss history
	Consumer indirect	DCF	National unemployment

According to the accounting standard, an entity may make an accounting policy election not to measure an allowance for credit losses for accrued interest receivable if the entity writes off the applicable accrued interest receivable balance in a timely manner. The Company has made the accounting policy election not to measure an allowance for credit losses for accrued interest receivables for all loan segments. Current policy dictates that a loan will be placed on nonaccrual status, with the current accrued interest receivable balance being written off, upon the loan being 90 days delinquent or when the loan is deemed to be collateral dependent and the collateral analysis shows less than 1.2 times discounted collateral coverage based on a current assessment of the value of the collateral.

In addition to the ASC Topic 326 requires the Company to establish a liability for anticipated credit losses for unfunded commitments. To accomplish this, the company must first establishes a loss expectation for extended (funded) commitments. This loss expectation, expressed as a ratio to the amortized cost basis, is then applied to the portion of unfunded commitments not considered unilaterally cancelable, and considered by the company’s management as likely to fund over the life of the instrument. At March 31, 2022, the Company had $1.5 billion in unfunded commitments and set aside $5.3 million in anticipated credit losses. This reserve is recorded in other liabilities as opposed to the ACL.

The determination of ACL is complex and the Company makes decisions on the effects of matters that are inherently uncertain. Evaluations of the loan portfolio and individual credits require certain estimates, assumptions and judgements as to the facts and circumstances related to particular situations or credits. There may be significant changes in the ACL in future periods determined by prevailing factors at that point in time along with future forecasts.

Purchased Credit Deteriorated Loans

Under ASU Topic 326, when loans are purchased with evidence of more than insignificant deterioration of credit, they are accounted for as PCD. PCD loans acquired in a transaction are marked to fair value and a mark on yield is recorded. In addition, an adjustment is made to the ACL for the expected loss on the acquisition date. These loans are assessed on a regular basis and subsequent adjustments to the ACL are recorded on the income statement. The outstanding balance and related allowance on these loans as of March 31, 2022 and December 31, 2021 is as follows (in thousands):

	As of March 31, 2022				As of December 31, 2021
	Loan Balance		ACL Balance		Loan Balance		ACL Balance
	(In Thousands)				(In Thousands)
Real Estate:
Residential	$	12,520	$	176	$	13,396	$	197
Commercial		3,146		51		5,878		151
Construction		—		—		—		—
		15,666		227		19,274		348
Other Loans:
Commercial		8,595		1,211		9,167		1,531
Home equity and improvement		3,135		139		3,405		154
Consumer finance		448		9		491		7
		12,178		1,359		13,063		1,692
Total	$	27,844	$	1,586	$	32,337	$	2,040

Foreclosure Proceedings

Consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure totaled $4.1 million as of March 31, 2022, and $3.3 million as of December 31, 2021.

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Mortgage Banking

3 Months Ended

Mar. 31, 2022

Mortgage Banking [Abstract]

Mortgage Banking

9. Mortgage Banking

Net revenues from the sales and servicing of mortgage loans consisted of the following:

	Three Months Ended March 31,
	2022			2021
	(In Thousands)
Mortgage banking gain, net	$	2,543		$	5,640
Mortgage loans servicing revenue (expense):
Mortgage loans servicing revenue		1,879			1,917
Amortization of mortgage servicing rights		(1,403	)		(2,344	)
Mortgage servicing rights valuation adjustments		1,233			5,320
		1,709			4,893
Net revenue from sale and servicing of mortgage loans	$	4,252		$	10,533

The unpaid principal balance of residential mortgage loans serviced for third parties was $2.94 billion at March 31, 2022, and December 31, 2021.

Activity for capitalized mortgage servicing rights and the related valuation allowance follows for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31,
	2022			2021
	(In Thousands)
Mortgage servicing assets:
Balance at beginning of period	$	22,244		$	21,666
Loans sold, servicing retained		1,348			2,374
Amortization		(1,403	)		(2,344	)
Carrying value before valuation allowance at end of period		22,189			21,696
Valuation allowance:
Balance at beginning of period		(2,707	)		(8,513	)
Impairment recovery (charges)		1,233			5,320
Balance at end of period		(1,474	)		(3,193	)
Net carrying value of MSRs at end of period	$	20,715		$	18,503
Fair value of MSRs at end of period	$	25,996		$	18,695

Amortization of mortgage servicing rights is computed based on payments and payoffs of the related mortgage loans serviced. Estimates of future amortization expense are not easily estimable.

The Company had no accrual for secondary market buy-back activity at March 31, 2022 or December 31, 2021 based on management’s estimate of potential losses from this activity. There was no expense or credit recognized in the three months ended March 31, 2022.

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Leases

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

Leases

10. Leases

The Company’s lease agreements have maturity dates ranging from April 2022 to September 2044, some of which include options for multiple five and ten year extensions. The weighted average remaining life of the lease term for these leases was 13.72 years as of March 31, 2022 and 14.21 years as of December 31, 2021. The weighted average discount rate for leases was 2.55% as of March 31, 2022 and 2.57% as of December 31, 2021.

The total operating lease costs were $542,000 and $664,000 for the three months ended March 31, 2022 and March 31, 2021, respectively. The right-of-use asset, included in other assets, was $15.6 million and $15.4 million at March 31, 2022 and December 31, 2021, respectively. The lease liabilities, included in other liabilities, were $16.3 million and $16.1 million as of March 31, 2022 and December 31, 2021, respectively.

Undiscounted cash flows included in lease liabilities have expected contractual payments as follows:

(in thousands)	March 31, 2022
Remainder of 2022	$	2,526
2023		2,023
2024		1,632
2025		1,408
2026		1,173
Thereafter		11,772
Total undiscounted minimum lease payments		20,534
Present value adjustment		(4,187	)
Total lease liabilities	$	16,347

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Deposits

3 Months Ended

Mar. 31, 2022

Deposits [Abstract]

Deposits

11. Deposits

A summary of deposit balances is as follows:

	March 31, 2022		December 31, 2021
	(In Thousands)
Non-interest-bearing checking accounts	$	1,733,157	$	1,724,772
Interest-bearing checking and money market accounts		3,029,260		2,952,705
Savings deposits		830,143		804,451
Retail certificates of deposit less than $250,000		586,967		636,477
Retail certificates of deposit greater than $250,000		137,708		163,646
	$	6,317,235	$	6,282,051

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Borrowings

3 Months Ended

Mar. 31, 2022

Subordinated Borrowings [Abstract]

Borrowings

12. Borrowings

The Company's junior subordinated debentures owed to unconsolidated subsidiary trusts and subordinated debentures are comprised of the following:

	March 31, 2022		December 31, 2021
	(In Thousands)
First Defiance Statutory Trust I due December 2035	$	20,619	$	20,619
First Defiance Statutory Trust II due June 2037	$	15,464	$	15,464
Junior subordinated debentures owed to unconsolidated subsidiary trusts	$	36,083	$	36,083
Subordinated debentures	$	48,925	$	48,893

At March 31, 2022, the Company had $150.0 million of outstanding FHLB advances with a maturity date in 2022. There were no outstanding FHLB advances at December 31, 2021.

In September 2020, the Company completed the issuance of $50.0 million aggregate principal amount, fixed-to-floating rate subordinated notes due September 30, 2030 in a private offering exempt from the registration requirements under the Securities Act of 1933, as amended. The notes carry a fixed rate of 4.0% for five years at which time they will convert to a floating rate based on the secured overnight borrowing rate, plus a spread of 388.5 basis points. The Company may, at its option, beginning September 30, 2025, redeem the notes,

in whole or in part, from time to time, subject to certain conditions. The net proceeds from the sale were approximately $48.7 million, after deducting the estimated offering expenses. The Company intends to use the net proceeds for general corporate purposes, which may include, without limitation, providing capital to support its growth organically or through strategic acquisitions, repaying indebtedness, in financing investments, capital expenditures, repurchasing its common shares and for investments in the Bank as regulatory capital. The subordinated debentures are included in Total Capital under current regulatory guidelines and interpretations.

In March 2007, the Company sponsored an affiliated trust, First Defiance Statutory Trust II (“Trust Affiliate II”) that issued $15.0 million of Guaranteed Capital Trust Securities (“Trust Preferred Securities”). In connection with this transaction, the Company issued $15.5 million of Junior Subordinated Deferrable Interest Debentures (Subordinated Debentures) to Trust Affiliate II. The Company formed Trust Affiliate II for the purpose of issuing Trust Preferred Securities to third-party investors and investing the proceeds from the sale of these capital securities solely in Subordinated Debentures of the Company. The Subordinated Debentures held by Trust Affiliate II are the sole assets of that trust. The Company is not considered the primary beneficiary of Trust Affiliate II (variable interest entity), therefore the trust is not consolidated in the Company’s financial statements, but rather the subordinated debentures are shown as a liability. Distributions on the Trust Preferred Securities issued by Trust Affiliate II are payable quarterly at a variable rate equal to the three-month LIBOR rate plus 1.5%. The coupon rate payable on the Trust Preferred Securities issued by Trust Affiliate II was 2.33% as of March 31, 2022, and 1.70% as of December 31, 2021.

The Trust Preferred Securities issued by Trust Affiliate II are subject to mandatory redemption, in whole or part, upon repayment of the Subordinated Debentures. The Company has entered into an agreement that fully and unconditionally guarantees the Trust Preferred Securities subject to the terms of the guarantee. The Trust Preferred Securities and Subordinated Debentures mature on September 15, 2037, but can be redeemed at the Company’s option at any time now.

The Company also sponsored an affiliated trust, First Defiance Statutory Trust I (“Trust Affiliate I”) that issued $20.0 million of Trust Preferred Securities in 2005. In connection with this transaction, the Company issued $20.6 million of Subordinated Debentures to Trust Affiliate I. Trust Affiliate I was formed for the purpose of issuing Trust Preferred Securities to third-party investors and investing the proceeds from the sale of these capital securities solely in Subordinated Debentures of the Company. The Junior Debentures held by Trust Affiliate I are the sole assets of the trust. The Company is not considered the primary beneficiary of Trust Affiliate I (variable interest entity), therefore the trust is not consolidated in the Company’s financial statements, but rather the subordinated debentures are shown as a liability. Distributions on the Trust Preferred Securities issued by Trust Affiliate I are payable quarterly at a variable rate equal to the three-month LIBOR rate plus 1.38%. The coupon rate payable on the Trust Preferred Securities issued by Trust Affiliate I was 2.21% and 1.58% on March 31, 2022 and December 31, 2021, respectively.

The Trust Preferred Securities issued by Trust Affiliate I are subject to mandatory redemption, in whole or in part, upon repayment of the Subordinated Debentures. The Company has entered into an agreement that fully and unconditionally guarantees the Trust Preferred Securities subject to the terms of the guarantee. The Trust Preferred Securities and Subordinated Debentures mature on December 15, 2035, but can be redeemed at the Company’s option at any time now.

The Subordinated Debentures related to the Trust Preferred Securities may be included in Tier 1 capital (with certain limitations applicable) under current regulatory guidelines and interpretations.

Interest on both issues of Trust Preferred Securities may be deferred for a period of up to five years at the option of the issuer.

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Commitments, Guarantees and Contingent Liabilities

3 Months Ended

Mar. 31, 2022

Commitments And Contingencies Disclosure [Abstract]

Commitments, Guarantees and Contingent Liabilities

13. Commitments, Guarantees and Contingent Liabilities

Loan commitments are made to accommodate the financial needs of Premier’s customers in the form of unfunded loans or unused lines of credit and result in market risk. Standby letters of credit commit the Company to make payments on behalf of customers when certain specified future events occur. They primarily are issued to facilitate customers’ trade transactions.

Both arrangements have credit risk, essentially the same as that involved in extending loans to customers, and are subject to the Company’s normal credit policies. Collateral (e.g., securities, receivables, inventory and equipment) is obtained based on a credit assessment of the customer.

The Company’s maximum obligation to extend credit for loan commitments (unfunded loans and unused lines of credit) and standby letters of credit outstanding as of the periods stated below were as follows (in thousands):

	March 31, 2022		December 31, 2021
Commitments to make loans	$	1,154,525	$	1,175,916
Unused lines of credit		1,007,302		626,348
Standby letters of credit		13,319		10,851
Total	$	2,175,146	$	1,813,115

Commitments to make loans are generally made for periods of 60 days or less.

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Income Taxes

3 Months Ended

Mar. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

4. Income Taxes

The Company and its subsidiaries are subject to U.S. federal income tax as well as income tax in the states of Indiana and West Virginia. The Company is no longer subject to examination by income taxing authorities for years before 2018. The Company also currently operates in the states of Ohio, Michigan and Pennsylvania which tax financial institutions based on their equity rather than their income.

The components of income tax expense (benefit) are as follows:

	For the Three Months Ended March 31,
	2022		2021
	(In Thousands)
Current:
Federal	$	5,814	$	6,362
State and local		163		163
Deferred		193		3,427
	$	6,170	$	9,952

The effective tax rates differ from federal statutory rate applied to income due to the following:

	For the Three Months Ended March 31,
	2022			2021
	(In Thousands)
Tax expense (benefit) at statutory rate (21%)	$	6,830		$	10,699
Increases (decreases) in taxes from:
State income tax - net of federal tax benefit		128			128
Tax exempt interest income, net of TEFRA		(186	)		(200	)
Bank owned life insurance		(209	)		(245	)
Captive insurance		(105	)		(90	)
Other		(288	)		(340	)
Totals	$	6,170		$	9,952

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Derivative Financial Instruments

3 Months Ended

Mar. 31, 2022

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

15. Derivative Financial Instruments

At March 31, 2022, the Company had approximately $27.3 million of interest rate lock commitments and $337.0 million of forward sales of mortgage backed securities. These commitments are considered derivatives. The Company had $65.4 million of interest rate lock commitments and $305.0 million of forward commitments at December 31, 2021.

The fair value of these mortgage banking derivatives are reflected by a derivative asset recorded in other assets in the Consolidated Statements of Financial Condition. The table below provides data about the carrying values of these derivative instrument assets:

	March 31, 2022		December 31, 2021
	(In Thousands)
Derivatives not designated as hedging instruments
Mortgage Banking Derivatives	$	9,923	$	2,336

The table below provides data about the amount of gains and losses recognized in income on derivative instruments not designated as hedging instruments. The difference in derivative carrying value at March 31, 2022 and 2021 represents a fair value adjustment that runs through mortgage banking income.

	Three Months Ended March 31,
	2022		2021
	(In Thousands)
Derivatives not designated as hedging instruments
Mortgage Banking Derivatives – Gain (Loss)	$	7,587	$	4,124

Interest Rate Swaps

The Company maintains an interest rate protection program for commercial loan customers. Under this program, the Company provides a customer with a fixed rate loan while creating a variable rate asset for the Company by the customer entering into an interest rate swap with terms that match the loan. The Company offsets its risk exposure by entering into an offsetting interest rate swap with an unaffiliated institution. The Company had interest rate swaps associated with commercial loans with a notional value of $82.6 million and fair value of $2.3 million in other assets and $2.3 million in other liabilities at March 31, 2022. As of December 31, 2021, the Company had interest rate swaps associated with commercial loans with a notional value of $69.4 million and fair value of $1.3 million in other assets and $1.3 million in other liabilities. For the three months ended March 31, 2022 and 2021, $1,000 and $198,000, respectively, flowed through noninterest income.

Interest Rate Swap Designated as Cash Flow Hedge

In May 2021, the Company entered into derivative instruments designated as a cash flow hedge. For a derivative instrument that is designated and qualifies as a cash flow hedge, the change in fair value of the derivative instrument is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings.

An interest rate swap with notional amount totaling $250.0 million as of March 31, 2022 was designated as a cash flow hedge to hedge the risk of variability in cash flows (future interest receipts) attributable to changes in the contractually specified LIBOR benchmark interest rate on the Company’s floating rate loan pool. The gross aggregate fair value of the swap of $16.2 million is recorded in other liabilities in the unaudited Consolidated

Balance Sheets at March 31, 2022, with changes in fair value recorded net of tax in other comprehensive income (loss). As of December 31, 2021, the gross aggregate fair value of the swap of $854,000 was recorded in other assets in the Consolidated Balance Sheets. A summary of the interest-rate swap designated as a cash flow hedge is presented below (dollars in thousands):

	March 31, 2022			December 31, 2021
Notional amount	$	250,000		$	250,000
Weighted average fixed receive rates		1.437	%		1.437	%
Weighted average variable 1-month LIBOR pay rates		0.438	%		0.089	%
Weighted average remaining maturity (in years)		9.0			9.3
Fair value	$	(16,180	)	$	854

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Other Comprehensive (Loss) Income

3 Months Ended

Mar. 31, 2022

Other Comprehensive Income Loss Net Of Tax Period Increase Decrease [Abstract]

Other Comprehensive (Loss) Income

16. Other Comprehensive (Loss) Income

The before and after tax amounts allocated to each component of other comprehensive income (loss) are presented in the table below. Reclassification adjustments related to securities available for sale are included in gains on sale of securities in the accompanying consolidated condensed statements of income.

	Before Tax Amount			Tax (Expense) Benefit		Net of Tax Amount
	(In Thousands)
Three months ended March 31, 2022:
Securities available for sale and transferred securities:
Change in net unrealized gain/loss during the period	$	(74,193	)	$	15,580	$	(58,613	)
Reclassification adjustment for net losses included in net income		—			—		—
Cash flow hedge derivatives
Change in net unrealized gain/loss during the period		(16,241	)		3,411		(12,830	)
Reclassification adjustment for net gains included in net income		(793	)		167		(626	)
Total other comprehensive gain	$	(91,227	)	$	19,158	$	(72,069	)

	Before Tax Amount			Tax (Expense) Benefit		Net of Tax Amount
	(In Thousands)
Three months ended March 31, 2021:
Securities available for sale:
Change in net unrealized gain/loss during the period	$	(19,112	)	$	4,014	$	(15,098	)
Reclassification adjustment for net gains included in net income		(516	)		108		(408	)
Total other comprehensive loss	$	(19,628	)	$	4,122	$	(15,506	)

Activity in accumulated other comprehensive income (loss), net of tax, was as follows:

	Securities Available For Sale			Post- retirement Benefit			Cash Flow Hedge Derivatives			Accumulated Other Comprehensive Income (Loss)
	(In Thousands)
Balance January 1, 2022	$	(4,023	)	$	(79	)	$	674		$	(3,428	)
Other comprehensive income/(loss) before reclassifications		(58,613	)		—			(12,830	)		(71,443	)
Amounts reclassified from accumulated other comprehensive income		—			—			(626	)		(626	)
Net other comprehensive income/(loss) during period		(58,613	)		—			(13,456	)		(72,069	)
Balance March 31, 2022	$	(62,636	)	$	(79	)	$	(12,782	)	$	(75,497	)
Balance January 1, 2021	$	15,083		$	(79	)	$	—		$	15,004
Other comprehensive income (loss) before reclassifications		(15,098	)		—			—			(15,098	)
Amounts reclassified from accumulated other comprehensive income		(408	)		—			—			(408	)
Net other comprehensive income during period		(15,506	)		—			—			(15,506	)
Balance March 31, 2021	$	(423	)	$	(79	)	$	—		$	(502	)

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Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Accounting Standards Update

Accounting Standards Update

ASU No. 2020-04: Reference Rate Reform – Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848): On March 12, 2020, the FASB issued Accounting Standards Update (ASU) 2020-4, "Reference Rate Reform (“ASC 848”): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." ASC 848 contains optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rates expected to be discontinued. The Company has formed a cross-functional project team to lead the transition from LIBOR to adoption of alternative reference rates which include Secured Overnight Financing Rate (“SOFR”). The Company identified loans that renewed prior to 2021 and began incorporating LIBOR fallback language into existing LIBOR loans. Additionally, management is utilizing the timeline guidance published by the Alternative Reference Rates Committee to develop and achieve internal milestones during this transitional period. Additionally, the Company has adhered to the International Swaps and Derivatives Association 2020 IBOR Fallbacks Protocol that was released on October 23, 2020. The Company discontinued the use of new LIBOR-based loans by December 31, 2021, according to regulatory guidelines. Legacy LIBOR-based loans will be transitioned to an alternative reference rate on or before June 30, 2023. The amendments in these updates are elective, are only available from March 12, 2020 until December 31, 2022 and their application did not have a material effect on the Company.

Accounting Standards Not Yet Adopted

Accounting Standards not yet adopted

ASU No. 2022-02, Troubled Debt Restructurings and Vintage Disclosures: On March 30, 2022, the FASB issued Accounting Standards Update ("ASU") 2022-02, "Troubled Debt Restructurings and Vintage Disclosures" which will eliminate troubled debt restructuring ("TDR") accounting for entities that have adopted ASU 2016-13, the current expected credit loss ("CECL") model and will add new vintage disclosures for gross write-offs. The elimination of TDR accounting can be adopted either prospectively for loan modifications after adoption or on a modified retrospective basis that would result in a cumulative effect adjustment to retained earnings in the period of adoption. ASU 2022-02 is effective for the Company for fiscal years beginning after December 15, 2022. The Company can elect to early adopt a part or all of the update. The Company is currently assessing the impacts of adopting the guidance.

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Fair Value (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Schedule of financial assets measured at fair value on a recurring basis

The following table summarizes the financial assets measured at fair value on a recurring basis segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

Assets and Liabilities Measured on a Recurring Basis

March 31, 2022	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(In Thousands)
Assets:
Available for sale securities:
Obligations of U.S. federal government corporations and         agencies	$	—	$	161,433	$	—	$	161,433
Mortgage-backed securities		—		200,824		—		200,824
Collateralized mortgage obligations		—		305,529		—		305,529
Asset-backed securities		—		213,097		—		213,097
Corporate bonds		—		72,719		—		72,719
Obligations of state and political subdivisions		—		265,764		—		265,764
Equity securities		13,454		—		—		13,454
Loans held for sale, at fair value		—		37,014		116,484		153,498
Interest rate swaps		—		2,338		—		2,338
Mortgage banking derivative		—		9,923		—		9,923
Liabilities:
Interest rate swaps		—		2,338		—		2,338
Cash flow hedge derivative		—		16,180		—		16,180

December 31, 2021	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(In Thousands)
Assets:
Available for sale securities:
Obligations of U.S. federal government corporations and   agencies	$	—	$	174,710	$	—	$	174,710
Mortgage-backed securities		—		206,751		—		206,751
Collateralized mortgage obligations		—		260,168		—		260,168
Asset-backed securities		—		220,536		—		220,536
Corporate bonds		—		70,893		—		70,893
Obligations of state and political subdivisions		—		273,202		—		273,202
Equity securities		14,097		—		—		14,097
Loans held for sale, at fair value		—		28,780		134,167		162,947
Interest rate swaps		—		1,287		—		1,287
Mortgage banking derivative		—		2,336		—		2,336
Liabilities:
Interest rate swaps		—		1,292		—		1,292

Summary of Reconciliation of all Assets Measured at Fair Value on Recurring Basis using Significant Unobservable Inputs (Level 3)

The table below presents a reconciliation of assets that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three month periods ended March 31, 2022 and 2021.

There were no securities that were measured at Level 3 for the three month periods ended March 31, 2022 and 2021.

	Construction loans held for sale
	Three Months Ended March 31,
	2022			2021
Balance of recurring Level 3 assets at beginning of period	$	134,167		$	123,029
Total gains (losses) for the period
Included in change in fair value of loans held for sale		(13,459	)		(5,568	)
Originations		36,343			34,003
Sales		(40,567	)		(16,826	)
Balance of recurring Level 3 assets at end of period	$	116,484		$	134,638

Schedule of Level 3 assets and liabilities measured at fair value on a recurring or nonrecurring basis

For Level 3 assets and liabilities measured at fair value on a recurring basis, the significant unobservable inputs used in the fair value measurements were as follows:

March 31, 2022	Fair Value		Valuation Technique	Unobservable Inputs	Range of Inputs
			(Dollars in Thousands)
Construction loans held for sale	$	116,484	Quoted market price	Time discount using the 60 day forward contract	0.00% - 1.52%

December 31, 2021	Fair Value		Valuation Technique	Unobservable Inputs	Range of Inputs
			(Dollars in Thousands)
Construction loans held for sale	$	134,167	Quoted market price	Time discount using the 60 day forward contract	0.00% - 1.86%

For Level 3 assets and liabilities measured at fair value on a non-recurring basis as of March 31, 2022, the significant unobservable inputs used in the fair value measurements were as follows:

	Fair Value		Valuation Technique	Unobservable Inputs	Range of Inputs			Weighted Average
			(Dollars in Thousands)
Individually analyzed Loans-    Applies to loan classes with an    appraisal valuation	$	5,199	Appraisals which utilize sales comparison, net income and cost approach	Discounts for collection issues and changes in market conditions	20-50%				31.38	%
Individually analyzed Loans-    Applies to loan classes without    an appraisal valuation	$	5,033	Equitable Recoupment claim estimate	Discounts for collection issues		25	%		25.00	%

For Level 3 assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2021, the significant unobservable inputs used in the fair value measurements were as follows:

	Fair Value		Valuation Technique	Unobservable Inputs	Range of Inputs			Weighted Average
			(Dollars in Thousands)
Individually analyzed Loans-    Applies to loan classes with an    appraisal valuation	$	5,821	Appraisals which utilize sales comparison, net income and cost approach	Discounts for collection issues and changes in market conditions	20-50%				35.18	%
Individually analyzed Loans-    Applies to loan classes without    an appraisal valuation	$	5,492	Equitable Recoupment claim estimate	Discounts for collection issues		25	%		25.00	%

Schedule of financial assets measured at fair value on a non-recurring basis

The following table summarizes the financial assets measured at fair value on a non-recurring basis segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

Assets and Liabilities Measured on a Non-Recurring Basis

March 31, 2022	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(In Thousands)
Individually analyzed loans
Residential	$	—	$	—	$	16		16
Commercial real estate		—		—		3,218		3,218
Commercial		—		—		6,998		6,998
Total individually analyzed loans		—		—		10,232		10,232
Mortgage servicing rights		—		20,715		—		20,715

December 31, 2021	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(In Thousands)
Individually analyzed loans
Commercial real estate	$	—	$	—	$	2,749	$	2,749
Commercial		—		—		8,564		8,564
Total individually analyzed loans		—		—		11,313		11,313
Mortgage servicing rights		—		19,538		—		19,538

Schedule of FHLB advances with maturities

FHLB advances with maturities greater than 90 days are valued based on a DCF analysis, using interest rates currently being quoted for similar characteristics and maturities resulting in a Level 2 classification. The cost or value of any call or put options is based on the estimated cost to settle the option at March 31, 2022.

The carrying value and estimated fair values of financial instruments at March 31, 2022 and December 31, 2021, were as follows:

			Fair Value Measurements at March 31, 2022
			(In Thousands)
	Carrying Value		Total		Level 1		Level 2		Level 3
Financial Assets:
Cash and cash equivalents	$	153,766	$	153,766	$	153,766	$	—	$	—
Securities available for sale		1,219,365		1,219,365		—		1,219,365		—
Equity securities		13,454		13,454		13,454		—		—
Accrued interest receivable		21,765		21,765		21,765		—		—
Federal Home Loan Bank Stock		15,332	N/A		N/A		N/A		N/A
Loans receivable, net		5,321,136		5,319,654		—		—		5,319,654
Loans held for sale, carried at fair value		153,498		153,498		—		37,014		116,484
Financial Liabilities:
Deposits	$	6,317,235	$	6,306,616	$	5,592,560	$	714,056	$	—
Advances from Federal Home Loan Bank		150,000		150,000		—		150,000		—
Subordinated debentures		85,008		84,168		—		84,168		—

			Fair Value Measurements at December 31, 2021
			(In Thousands)
	Carrying Value		Total		Level 1		Level 2		Level 3
Financial Assets:
Cash and cash equivalents	$	161,566	$	161,566	$	161,566	$	—	$	—
Securities available for sale		1,206,260		1,206,260		—		1,206,260		—
Equity securities		14,097		14,097		14,097		—		—
Accrued interest receivable		20,767		20,767		20,767		—		—
Federal Home Loan Bank Stock		11,585	N/A		N/A		N/A		N/A
Loans receivable, net		5,229,700		5,265,689		—		—		5,265,689
Loans held for sale, carried at fair value		162,947		162,947		—		28,780		134,167
Financial Liabilities:
Deposits	$	6,282,051	$	6,280,336	$	5,481,928	$	798,408	$	—
Subordinated debentures		84,976		85,417		—		—		85,417

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Stock Compensation Plans (Tables)

3 Months Ended

Mar. 31, 2022

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Schedule of stock option activity under the plans

Following is stock option activity under the plans during the three months ended March 31, 2022:

	Options Outstanding		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in 000’s)
Options outstanding, January 1, 2022		35,661	$	21.72
Forfeited or cancelled		—		—
Exercised		—		—
Granted		—		—
Options outstanding, March 31, 2022		35,661	$	21.72		4.09	$	310,597
Exercisable at March 31, 2022		35,661	$	21.72		4.09	$	310,597

Schedule of proceeds, related tax benefits realized from options exercised and intrinsic value of options exercised

Proceeds, related tax benefits realized from options exercised and intrinsic value of options exercised were as follows (in thousands):

	Three Months Ended March 31,				Three Months Ended March 31,
	2022		2021		2022		2021
Proceeds of options exercised	$	—	$	8	$	—	$	8
Related tax benefit recognized		—		—		—		—
Intrinsic value of options exercised		—		11		—		11

Schedule of restricted stock units and stock grants

Total expense of $34,000 and $1.0 million was recorded during each of the three months ended March 31, 2022 and 2021, respectively, and approximately $181,000 and $2.7 million is included within other liabilities at March 31, 2022 and December 31, 2021, respectively, related to the cash portion of the STIPs.

	Performance Stock Units				Restricted Stock Units					Restricted Stock Awards
Unvested Shares	Shares		Weighted- Average Grant Date Fair Value		Shares			Weighted- Average Grant Date Fair Value		Shares			Weighted- Average Grant Date Fair Value
Unvested at January 1, 2022		161,674	$	28.36		51,773		$	28.44		58,260		$	29.71
Granted		80,794		30.65		—			—		19,936			30.66
Vested		—		—		(8,090	)		26.40		(27,580	)		26.93
Forfeited		—		—		(3,730	)		28.20		(786	)		31.84
Unvested at March 31, 2022		242,468	$	29.12		39,953		$	28.88		49,830		$	31.60

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Earnings Per Common Share (Tables)

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Schedule of computation of basic and diluted earnings per common share

The following table sets forth the computation of basic and diluted earnings per common share:

	Three Months Ended March 31,
	2022		2021
	(In Thousands, except per share data)
Basic Earnings Per Share:
Net income available to common shareholders	$	26,357	$	40,996
Less: income allocated to participating securities		35		43
Net income allocated to common shareholders		26,322		40,953
Weighted average common shares outstanding including    participating securities		36,026		37,332
Less: Participating securities		48		39
Average common shares		35,978		37,293
Basic earnings per common share	$	0.73	$	1.10
Diluted Earnings Per Share:
Net income allocated to common shareholders	$	26,322	$	40,953
Weighted average common shares outstanding for basic earnings    per common share		35,978		37,293
Add: Dilutive effects of stock options and restricted stock units		112		64
Average shares and dilutive potential common shares		36,090		37,357
Diluted earnings per common share	$	0.73	$	1.10

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Investment Securities (Tables)

3 Months Ended

Mar. 31, 2022

Marketable Securities [Abstract]

Summary of available-for-sale securities

The following is a summary of available-for-sale securities:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Loss			Fair Value
	(In Thousands)
At March 31, 2022
Available-for-Sale Securities:
Obligations of U.S. government corporations and agencies	$	174,400	$	3	$	(12,970	)	$	161,433
Mortgage-backed securities		215,800		114		(15,090	)		200,824
Collateralized mortgage obligations		326,650		—		(21,122	)		305,528
Asset-backed securities		216,998		487		(4,388	)		213,097
Corporate bonds		74,395		158		(1,834	)		72,719
Obligations of state and political subdivisions		290,408		1,577		(26,221	)		265,764
Total Available-for-Sale	$	1,298,651	$	2,339	$	(81,625	)	$	1,219,365

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Loss			Fair Value
	(In Thousands)
At December 31, 2021
Available-for-sale
Obligations of U.S. government corporations and agencies	$	174,644	$	984	$	(918	)	$	174,710
Mortgage-backed securities		208,281		851		(2,381	)		206,751
Collateralized mortgage obligations		264,541		363		(4,736	)		260,168
Asset-backed securities		221,545		610		(1,619	)		220,536
Corporate bonds		70,008		1,160		(275	)		70,893
Obligations of state and political subdivisions		272,334		5,898		(5,030	)		273,202
Total Available-for-Sale	$	1,211,353	$	9,866	$	(14,959	)	$	1,206,260

Schedule of investments classified by contractual maturity date

The amortized cost and fair value of the investment securities portfolio at March 31, 2022, are shown below by contractual maturity. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. For purposes of the maturity table, mortgage-backed securities (“MBS”), CMOs and asset-backed securities (“ABS”), which are not due at a single maturity date, have not been allocated over the maturity groupings. These securities may mature earlier than their weighted-average contractual maturities because of principal prepayments.

	Available-for-Sale
	Amortized Cost		Fair Value
	(In Thousands)
Due in one year or less	$	3,230	$	3,235
Due after one year through five years		43,732		42,536
Due after five years through ten years		205,366		195,580
Due after ten years		286,875		258,565
MBS/CMO/ABS		759,448		719,449
	$	1,298,651	$	1,219,365

Schedule of securities that were in an unrealized loss position

The following tables summarize Premier’s securities that were in an unrealized loss position at March 31, 2022, and December 31, 2021:

	Duration of Unrealized Loss Position
	Less than 12 Months					12 Months or Longer					Total
	Fair Value		Gross Unrealized Loss			Fair Value		Gross Unrealized Loss			Fair Value		Unrealized Loss
	(In Thousands)
At March 31, 2022
Available-for-sale securities:
Obligations of U.S. government corporations and agencies	$	152,407	$	(11,201	)	$	8,503	$	(1,769	)	$	160,910	$	(12,970	)
Mortgage-backed securities		134,953		(9,319	)		61,098		(5,771	)		196,051		(15,090	)
Collateralized mortgage obligations		300,681		(20,737	)		4,847		(385	)		305,528		(21,122	)
Asset-backed securities		167,305		(4,255	)		15,634		(133	)		182,939		(4,388	)
Corporate bonds		60,809		(1,786	)		1,212		(48	)		62,021		(1,834	)
Obligations of state and political subdivisions		125,688		(13,129	)		73,619		(13,092	)		199,307		(26,221	)
Total available-for-sale	$	941,843	$	(60,427	)	$	164,913	$	(21,198	)	$	1,106,756	$	(81,625	)

	Duration of Unrealized Loss Position
	Less than 12 Months					12 Months or Longer					Total
	Fair Value		Gross Unrealized Loss			Fair Value		Gross Unrealized Loss			Fair Value		Unrealized Loss
	(In Thousands)
At December 31, 2021
Available-for-sale securities:
Obligations of U.S. government corporations and agencies	$	73,810	$	(918	)	$	—	$	—		$	73,810	$	(918	)
Mortgage-backed securities-residential		167,379		(2,048	)		13,689		(333	)		181,068		(2,381	)
Collateralized mortgage obligations		222,134		(4,736	)		—		—			222,134		(4,736	)
Asset-backed securities		140,226		(1,589	)		2,705		(30	)		142,931		(1,619	)
Corporate bonds		24,173		(270	)		504		(5	)		24,677		(275	)
Obligations of state and political subdivisions		99,199		(3,355	)		34,548		(1,675	)		133,747		(5,030	)
Total available-for-sale	$	726,921	$	(12,916	)	$	51,446	$	(2,043	)	$	778,367	$	(14,959	)

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Loans (Tables)

3 Months Ended

Mar. 31, 2022

Loans And Leases Receivable Net Reported Amount [Abstract]

Schedule of Loans Receivable

Loan segments have been identified by evaluating the portfolio based on collateral and credit risk characteristics. Loans receivable consist of the following:

	March 31, 2022			December 31, 2021
	(In Thousands)
Real Estate:
Residential	$	1,222,057		$	1,167,466
Commercial		2,495,469			2,450,349
Construction		883,712			862,815
		4,601,238			4,480,630
Other Loans:
Commercial		910,553			895,638
Home equity and improvement		261,176			264,354
Consumer finance		132,294			126,417
		1,304,023			1,286,409
Loans before deferred loan origination fees and costs		5,905,261			5,767,039
Deduct:
Undisbursed construction loan funds		(525,545	)		(477,890	)
Net deferred loan origination fees and costs		8,615			7,019
Allowance for credit losses		(67,195	)		(66,468	)
Total loans	$	5,321,136		$	5,229,700

Schedule of allowance for credit loss (ACL) activity

The following table discloses allowance for credit loss (“ACL”) activity for the three months ended March 31, 2022 and 2021 by portfolio segment (in thousands):

Three Months Ended March 31, 2022	Residential Real Estate			Commercial Real Estate			Construction			Commercial			Home Equity and Improvement			Consumer Finance			Total
Beginning Allowance	$	12,029		$	32,399		$	3,004		$	13,410		$	4,221		$	1,405		$	66,468
Charge-Offs		(140	)		(7	)		—			(10	)		(29	)		(103	)		(289	)
Recoveries		81			59			—			102			34			114			390
Provisions		(330	)		1,750			(391	)		319			(307	)		(415	)		626
Ending Allowance	$	11,640		$	34,201		$	2,613		$	13,821		$	3,919		$	1,001		$	67,195

Three Months Ended March 31, 2021	Residential Real Estate			Commercial Real Estate			Construction		Commercial			Home Equity and Improvement			Consumer Finance			Total
Beginning Allowance	$	17,534		$	43,417		$	2,741	$	11,665		$	4,739		$	1,983		$	82,079
Charge-Offs		—			—			—		(70	)		(3	)		(36	)		(109	)
Recoveries		8			36			—		198			29			27			298
Provisions		(34	)		(8,181	)		35		398			416			(148	)		(7,514	)
Ending Allowance	$	17,508		$	35,272		$	2,776	$	12,191		$	5,181		$	1,826		$	74,754

Summary of Amortized Cost Basis of Collateral-Dependent Loans by Class of Loans and Collateral Type

The following table presents the amortized cost basis of collateral-dependent loans by class of loans and collateral type as of March 31, 2022 and December 31, 2021 (in thousands):

	March 31, 2022
	Real Estate		Equipment and Machinery		Inventory and Receivables		Vehicles		Total
Real Estate:
Residential	$	78	$	—	$	—	$	—	$	78
Commercial		17,592		—		—		—		17,592
Construction		—		—		—		—		—
Other Loans:
Commercial		1,573		—		13,711		21		15,305
Home equity and improvement		—		—		—		—		—
Consumer finance		—		—		—		—		—
Total	$	19,243	$	—	$	13,711	$	21	$	32,975

	December 31, 2021
	Real Estate		Equipment and Machinery		Inventory and Receivables		Vehicles		Total
Real Estate:
Residential	$	226	$	—	$	—	$	—	$	226
Commercial		18,399		—		—		—		18,399
Construction		—		—		—		—		—
Other Loans:
Commercial		1,574		160		14,023		25		15,782
Home equity and improvement		—		—		—		—		—
Consumer finance		—		—		—		—		—
Total	$	20,199	$	160	$	14,023	$	25	$	34,407

Schedule of current balance of the aggregate amounts of non-performing assets, comprised of non-performing loans and real estate owned

The following table presents the current balance of the aggregate amounts of non-performing assets, comprised of non-performing loans and real estate owned as of the dates indicated:

	March 31, 2022		December 31, 2021
	(In Thousands)
Non-accrual loans with reserve	$	32,930	$	35,480
Non-accrual loans without reserve		14,368	$	12,534
Loans 90 days plus past due and still accruing		—		—
Total non-performing loans		47,298		48,014
Real estate and other assets held for sale		253		171
Total non-performing assets	$	47,551	$	48,185
Troubled debt restructuring, still accruing	$	6,287	$	7,768

Schedule of Aging of the Amortized Cost/ Recorded Investment in Past Due and Non- Accrual Loans

The following table presents the aging of the amortized cost in past due and non-accrual loans as of March 31, 2022, by class of loans (in thousands):

	Current		30 - 59 days		60 - 89 days		90 + days		Total Past Due		Total Non- Accrual
Real Estate:
Residential	$	1,202,041	$	307	$	3,327	$	7,654	$	11,288	$	9,280
Commercial		2,486,865		549		6		8,059		8,614		14,423
Construction		358,167		—		—		—		—		—
Other Loans:
Commercial		890,418		10,371		—		936		11,307		11,386
Home equity and improvement		255,180		756		334		1,771		2,861		2,171
Consumer finance		129,659		1,530		598		1,959		4,087		2,100
PCD		21,924		173		703		5,044		5,920		7,938
Total Loans	$	5,344,254	$	13,686	$	4,968	$	25,423	$	44,077	$	47,298

The following table presents the aging of the recorded investment in past due and non-accrual loans as of December 31, 2021, by class of loans (in thousands):

	Current		30 - 59 days		60 - 89 days		90 + days		Total Past Due		Total Non Accrual
Real Estate:
Residential	$	1,144,533	$	234	$	5,340	$	7,487	$	13,061	$	9,034
Commercial		2,439,552		96		847		7,168		8,111		14,621
Construction		383,136		43		1,746		—		1,789		—
Other Loans:
Commercial		884,025		42		35		867		944		11,531
Home equity and improvement		257,055		1,851		408		1,634		3,893		2,051
Consumer finance		124,073		1,112		819		1,728		3,659		1,873
PCD		25,111		225		1,005		5,996		7,226		8,904
Total Loans	$	5,257,485	$	3,603	$	10,200	$	24,880	$	38,683	$	48,014

Schedule of Present Loans by Class Modified as TDRs that Occurred

The following tables present loans by class modified as TDRs that occurred during the three months ended March 31, 2022 and 2021:

	Loans Modified as a TDR for the Three Months Ended March 31, 2022 ($ in thousands)
Troubled Debt Restructurings	Number of Loans		Recorded Investment (as of period end)
Real Estate:
Residential		1	$	252
Commercial		—		—
Construction		—		—
Other Loans:
Commercial		—		—
Home equity and improvement		—		—
Consumer finance		2		20
Total		3	$	272

The loans described above increased the ACL by $1,000 in the three months ended March 31, 2022.

	Loans Modified as a TDR for the Three Months Ended March 31, 2021 ($ in thousands)
Troubled Debt Restructurings	Number of Loans		Recorded Investment (as of period end)
Real Estate:
Residential		2	$	150
Commercial		—		—
Construction		—		—
Other Loans:
Commercial		3		709
Home equity and improvement		—		—
Consumer finance		—		—
Total		5	$	859

Schedule of Risk Category of Loans by Class of Loans

As of March 31, 2022, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows (in thousands):

Class	Unclassified		Special Mention		Substandard		Doubtful		Total classified		Total
Real Estate:
Residential	$	1,202,103	$	1,295	$	9,931	$	-	$	9,931	$	1,213,329
Commercial		2,376,266		93,550		25,663		—		25,663		2,495,479
Construction		358,167		—		—		—		—		358,167
Other Loans:
Commercial		869,383		20,558		11,784		—		11,784		901,725
Home equity and improvement		255,883		—		2,158		—		2,158		258,041
Consumer finance		131,647		—		2,099		—		2,099		133,746
PCD		19,110		98		8,636		—		8,636		27,844
Total Loans	$	5,212,559	$	115,501	$	60,271	$	—	$	60,271	$	5,388,331

As of December 31, 2021, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows (in thousands):

Class	Unclassified		Special Mention		Substandard		Doubtful		Total classified		Total
Real Estate:
Residential	$	1,146,212	$	1,316	$	10,066	$	-	$	10,066	$	1,157,594
Commercial		2,324,846		93,676		29,141		—		29,141		2,447,663
Construction		365,403		19,522		—		—		—		384,925
Other Loans:
Commercial		856,402		14,815		13,752		—		13,752		884,969
Home equity and improvement		258,914		—		2,034		—		2,034		260,948
Consumer finance		125,879		—		1,853		—		1,853		127,732
PCD		19,547		101		12,689		—		12,689		32,337
Total Loans	$	5,097,203	$	129,430	$	69,535	$	—	$	69,535	$	5,296,168

Summary of Amortized Cost Basis of Loans by Credit Quality Indicator and Class of Loans

The tables below present the amortized cost basis of loans by credit quality indicator and class of loans as of March 31, 2022 and December 31, 2021 (in thousands):

	Term of loans by origination
	2022		2021		2020		2019		2018		Prior		Revolving Loans		Total
As of March 31, 2022
Real Estate
Residential:
Risk Rating
Pass	$	87,717	$	247,594	$	355,860	$	104,958	$	59,789	$	344,704	$	1,481	$	1,202,103
Special Mention		—		—		187		37		—		158		913		1,295
Substandard		—		777		957		779		1,178		6,240		—		9,931
Doubtful		—		—		—		—		—		—		—		—
Total	$	87,717	$	248,371	$	357,004	$	105,774	$	60,967	$	351,102	$	2,394	$	1,213,329
Commercial:
Risk Rating
Pass	$	117,640	$	511,210	$	513,331	$	358,355	$	228,407	$	636,090	$	11,233	$	2,376,266
Special Mention		2,380		292		—		2,111		17,094		71,000		673		93,550
Substandard		—		195		559		4,788		4,946		14,949		226		25,663
Doubtful		—		—		—		—		—		—		—		—
Total	$	120,020	$	511,697	$	513,890	$	365,254	$	250,447	$	722,039	$	12,132	$	2,495,479
Construction:
Risk Rating
Pass	$	196,348	$	86,533	$	53,706	$	-	$	727	$	-	$	20,853	$	358,167
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—				—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total	$	196,348	$	86,533	$	53,706	$	-	$	727	$	-	$	20,853	$	358,167
Other Loans
Commercial:
Risk Rating
Pass	$	67,089	$	240,506	$	125,299	$	74,398	$	41,778	$	34,471	$	285,842	$	869,383
Special Mention		2,857		—		2,117		3,919		225		5,738		5,702		20,558
Substandard		—		123		10,347		22		249		216		827		11,784
Doubtful		—		—		—		—		—		—		—		—
Total	$	69,946	$	240,629	$	137,763	$	78,339	$	42,252	$	40,425	$	292,371	$	901,725
Home equity and Improvement:
Risk Rating
Pass	$	3,622	$	23,965	$	6,444	$	4,267	$	2,524	$	35,008	$	180,053	$	255,883
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		28		37		790		1,303		2,158
Doubtful		—		—		—		—		—		—		—		—
Total	$	3,622	$	23,965	$	6,444	$	4,295	$	2,561	$	35,798	$	181,356	$	258,041
Consumer Finance:
Risk Rating
Pass	$	21,501	$	44,590	$	23,257	$	19,959	$	7,877	$	5,528	$	8,935	$	131,647
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		187		980		717		125		86		4		2,099
Doubtful		—		—		—		—		—		—		—		—
Total	$	21,501	$	44,777	$	24,237	$	20,676	$	8,002	$	5,614	$	8,939	$	133,746
PCD:
Risk Rating
Pass	$	-	$	-	$	-	$	163	$	1,733	$	13,739	$	3,475	$	19,110
Special Mention		—		—		—		—		—		98		—		98
Substandard		—		—		—		53		26		5,854		2,703		8,636
Doubtful		—		—		—		—		—		—		—		—
Total	$	-	$	-	$	-	$	216	$	1,759	$	19,691	$	6,178	$	27,844

	Term of loans by origination
	2020		2019		2018		2017		2016		Prior		Revolving Loans		Total
As of December 31, 2021
Real Estate
Residential:
Risk Rating
Pass	$	219,006	$	373,439	$	112,781	$	65,544	$	71,794	$	301,735	$	1,913	$	1,146,212
Special Mention		—		190		—		—		59		109		958		1,316
Substandard		465		780		1,198		1,006		2,095		4,522		—		10,066
Doubtful		—		—		—		—		—		—		—		—
Total	$	219,471	$	374,409	$	113,979	$	66,550	$	73,948	$	306,366	$	2,871	$	1,157,594
Commercial:
Risk Rating
Pass	$	514,333	$	493,575	$	388,117	$	230,734	$	237,712	$	451,113	$	9,262	$	2,324,846
Special Mention		294		5,349		5,533		11,055		49,993		20,662		790		93,676
Substandard		172		570		4,920		5,525		62		17,665		227		29,141
Doubtful		—		—		—		—		—		—		—		—
Total	$	514,799	$	499,494	$	398,570	$	247,314	$	287,767	$	489,440	$	10,279	$	2,447,663
Construction:
Risk Rating
Pass	$	198,221	$	100,606	$	55,707	$	10,039	$	685	$	145	$	-	$	365,403
Special Mention		—		12,500		—		5,996		1,026		—		—		19,522
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total	$	198,221	$	113,106	$	55,707	$	16,035	$	1,711	$	145	$	-	$	384,925
Other Loans
Commercial:
Risk Rating
Pass	$	293,644	$	132,703	$	84,668	$	47,421	$	24,269	$	17,038	$	256,659	$	856,402
Special Mention		—		2,180		4,094		272		1,264		4,663		2,342		14,815
Substandard		136		11,550		23		288		388		131		1,236		13,752
Doubtful		—		—		—		—		—		—		—		—
Total	$	293,780	$	146,433	$	88,785	$	47,981	$	25,921	$	21,832	$	260,237	$	884,969
Home equity and Improvement:
Risk Rating
Pass	$	24,707	$	6,870	$	4,867	$	2,879	$	5,534	$	31,317	$	182,740	$	258,914
Special Mention		—		—		—		—		—		—		—		—
Substandard		15		—		28		48		27		690		1,226		2,034
Doubtful		—		—		—		—		—		—		—		—
Total	$	24,722	$	6,870	$	4,895	$	2,927	$	5,561	$	32,007	$	183,966	$	260,948
Consumer Finance:
Risk Rating
Pass	$	50,202	$	25,866	$	23,000	$	9,643	$	4,313	$	2,769	$	10,086	$	125,879
Special Mention		—		—		—		—		—		—		—		—
Substandard		196		707		619		129		67		131		4		1,853
Doubtful		—		—		—		—		—		—		—		—
Total	$	50,398	$	26,573	$	23,619	$	9,772	$	4,380	$	2,900	$	10,090	$	127,732
PCD:
Risk Rating
Pass	$	-	$	-	$	170	$	1,753	$	1,860	$	12,496	$	3,268	$	19,547
Special Mention		—		—		—		—		—		101		—		101
Substandard		—		—		67		28		3,242		6,490		2,862		12,689
Doubtful		—		—		—		—		—		—		—		—
Total	$	-	$	-	$	237	$	1,781	$	5,102	$	19,087	$	6,130	$	32,337

A

Summary of Credit Loss Estimation

The remaining life method was selected for the consumer direct loan segment since the pool contains loans with many different structures and payment streams and collateral. The weighted average remaining life uses an average annual charge-off rate applied to the contractual term, further adjusted for estimated prepayments to determine the unadjusted historical charge-off rate for the remaining balance of assets.

Portfolio Segments	Loan Pool	Methodology	Loss Drivers
Residential real estate	1-4 Family nonowner occupied	DCF	National unemployment
	1-4 Family owner occupied	DCF	National unemployment
Commercial real estate	Commercial real estate nonowner occupied	DCF	National unemployment
	Commercial real estate owner occupied	DCF	National unemployment
	Multi Family	DCF	National unemployment
	Agriculture Land	DCF	National unemployment
	Other commercial real estate	DCF	National unemployment
Construction secured by real estate	Construction Other	PD/LGD	Call report loss history
	Construction Residential	PD/LGD	Call report loss history
Commercial	Commercial working capital	PD/LGD	Call report loss history
	Agriculture production	PD/LGD	Call report loss history
	Other commercial	PD/LGD	Call report loss history
Home equity and improvement	Home equity and improvement	PD/LGD	Call report loss history
Consumer finance	Consumer direct	Remaining life	Call report loss history
	Consumer indirect	DCF	National unemployment

Schedule of Outstanding Balance and Related Allowance on Loans

The outstanding balance and related allowance on these loans as of March 31, 2022 and December 31, 2021 is as follows (in thousands):

	As of March 31, 2022				As of December 31, 2021
	Loan Balance		ACL Balance		Loan Balance		ACL Balance
	(In Thousands)				(In Thousands)
Real Estate:
Residential	$	12,520	$	176	$	13,396	$	197
Commercial		3,146		51		5,878		151
Construction		—		—		—		—
		15,666		227		19,274		348
Other Loans:
Commercial		8,595		1,211		9,167		1,531
Home equity and improvement		3,135		139		3,405		154
Consumer finance		448		9		491		7
		12,178		1,359		13,063		1,692
Total	$	27,844	$	1,586	$	32,337	$	2,040

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Mortgage Banking (Tables)

3 Months Ended

Mar. 31, 2022

Mortgage Banking [Abstract]

Schedule of net revenues from the sales and servicing of mortgage loans

Net revenues from the sales and servicing of mortgage loans consisted of the following:

	Three Months Ended March 31,
	2022			2021
	(In Thousands)
Mortgage banking gain, net	$	2,543		$	5,640
Mortgage loans servicing revenue (expense):
Mortgage loans servicing revenue		1,879			1,917
Amortization of mortgage servicing rights		(1,403	)		(2,344	)
Mortgage servicing rights valuation adjustments		1,233			5,320
		1,709			4,893
Net revenue from sale and servicing of mortgage loans	$	4,252		$	10,533

Schedule of capitalized mortgage and valuation allowance

Activity for capitalized mortgage servicing rights and the related valuation allowance follows for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31,
	2022			2021
	(In Thousands)
Mortgage servicing assets:
Balance at beginning of period	$	22,244		$	21,666
Loans sold, servicing retained		1,348			2,374
Amortization		(1,403	)		(2,344	)
Carrying value before valuation allowance at end of period		22,189			21,696
Valuation allowance:
Balance at beginning of period		(2,707	)		(8,513	)
Impairment recovery (charges)		1,233			5,320
Balance at end of period		(1,474	)		(3,193	)
Net carrying value of MSRs at end of period	$	20,715		$	18,503
Fair value of MSRs at end of period	$	25,996		$	18,695

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Leases (Tables)

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

Schedule of Undiscounted Cash Flows Included in Lease Liabilities

Undiscounted cash flows included in lease liabilities have expected contractual payments as follows:

(in thousands)	March 31, 2022
Remainder of 2022	$	2,526
2023		2,023
2024		1,632
2025		1,408
2026		1,173
Thereafter		11,772
Total undiscounted minimum lease payments		20,534
Present value adjustment		(4,187	)
Total lease liabilities	$	16,347

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Deposits (Tables)

3 Months Ended

Mar. 31, 2022

Deposits [Abstract]

Summary of deposit balances

A summary of deposit balances is as follows:

	March 31, 2022		December 31, 2021
	(In Thousands)
Non-interest-bearing checking accounts	$	1,733,157	$	1,724,772
Interest-bearing checking and money market accounts		3,029,260		2,952,705
Savings deposits		830,143		804,451
Retail certificates of deposit less than $250,000		586,967		636,477
Retail certificates of deposit greater than $250,000		137,708		163,646
	$	6,317,235	$	6,282,051

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Borrowings (Tables)

3 Months Ended

Mar. 31, 2022

Subordinated Borrowings [Abstract]

Schedule of Bank Line of Credit Advance, Junior Subordinated Debentures and Subordinated Debentures

The Company's junior subordinated debentures owed to unconsolidated subsidiary trusts and subordinated debentures are comprised of the following:

	March 31, 2022		December 31, 2021
	(In Thousands)
First Defiance Statutory Trust I due December 2035	$	20,619	$	20,619
First Defiance Statutory Trust II due June 2037	$	15,464	$	15,464
Junior subordinated debentures owed to unconsolidated subsidiary trusts	$	36,083	$	36,083
Subordinated debentures	$	48,925	$	48,893

XML

Commitments, Guarantees and Contingent Liabilities (Tables)

3 Months Ended

Mar. 31, 2022

Commitments And Contingencies Disclosure [Abstract]

Schedule of line of credit facilities

The Company’s maximum obligation to extend credit for loan commitments (unfunded loans and unused lines of credit) and standby letters of credit outstanding as of the periods stated below were as follows (in thousands):

	March 31, 2022		December 31, 2021
Commitments to make loans	$	1,154,525	$	1,175,916
Unused lines of credit		1,007,302		626,348
Standby letters of credit		13,319		10,851
Total	$	2,175,146	$	1,813,115

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Income Taxes (Tables)

3 Months Ended

Mar. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of components of income tax expense (benefit)

The components of income tax expense (benefit) are as follows:

	For the Three Months Ended March 31,
	2022		2021
	(In Thousands)
Current:
Federal	$	5,814	$	6,362
State and local		163		163
Deferred		193		3,427
	$	6,170	$	9,952

Schedule of effective income tax rate reconciliation

The effective tax rates differ from federal statutory rate applied to income due to the following:

	For the Three Months Ended March 31,
	2022			2021
	(In Thousands)
Tax expense (benefit) at statutory rate (21%)	$	6,830		$	10,699
Increases (decreases) in taxes from:
State income tax - net of federal tax benefit		128			128
Tax exempt interest income, net of TEFRA		(186	)		(200	)
Bank owned life insurance		(209	)		(245	)
Captive insurance		(105	)		(90	)
Other		(288	)		(340	)
Totals	$	6,170		$	9,952

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Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2022

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Schedule of carrying values of the derivative instrument assets

The table below provides data about the carrying values of these derivative instrument assets:

	March 31, 2022		December 31, 2021
	(In Thousands)
Derivatives not designated as hedging instruments
Mortgage Banking Derivatives	$	9,923	$	2,336

Schedule of amount of gains and losses recognized in income on derivative instruments not designated as hedging instruments

The table below provides data about the amount of gains and losses recognized in income on derivative instruments not designated as hedging instruments. The difference in derivative carrying value at March 31, 2022 and 2021 represents a fair value adjustment that runs through mortgage banking income.

	Three Months Ended March 31,
	2022		2021
	(In Thousands)
Derivatives not designated as hedging instruments
Mortgage Banking Derivatives – Gain (Loss)	$	7,587	$	4,124

Summary of Interest Rate Swap Designated as Cash Flow Hedge

A summary of the interest-rate swap designated as a cash flow hedge is presented below (dollars in thousands):

	March 31, 2022			December 31, 2021
Notional amount	$	250,000		$	250,000
Weighted average fixed receive rates		1.437	%		1.437	%
Weighted average variable 1-month LIBOR pay rates		0.438	%		0.089	%
Weighted average remaining maturity (in years)		9.0			9.3
Fair value	$	(16,180	)	$	854

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Other Comprehensive (Loss) Income (Tables)

3 Months Ended

Mar. 31, 2022

Other Comprehensive Income Loss Net Of Tax Period Increase Decrease [Abstract]

Schedule of reclassification adjustments related to securities available for sale are included in gains on sale of securities

Reclassification adjustments related to securities available for sale are included in gains on sale of securities in the accompanying consolidated condensed statements of income.

	Before Tax Amount			Tax (Expense) Benefit		Net of Tax Amount
	(In Thousands)
Three months ended March 31, 2022:
Securities available for sale and transferred securities:
Change in net unrealized gain/loss during the period	$	(74,193	)	$	15,580	$	(58,613	)
Reclassification adjustment for net losses included in net income		—			—		—
Cash flow hedge derivatives
Change in net unrealized gain/loss during the period		(16,241	)		3,411		(12,830	)
Reclassification adjustment for net gains included in net income		(793	)		167		(626	)
Total other comprehensive gain	$	(91,227	)	$	19,158	$	(72,069	)

	Before Tax Amount			Tax (Expense) Benefit		Net of Tax Amount
	(In Thousands)
Three months ended March 31, 2021:
Securities available for sale:
Change in net unrealized gain/loss during the period	$	(19,112	)	$	4,014	$	(15,098	)
Reclassification adjustment for net gains included in net income		(516	)		108		(408	)
Total other comprehensive loss	$	(19,628	)	$	4,122	$	(15,506	)

Schedule of accumulated other comprehensive income (loss), net of tax

Activity in accumulated other comprehensive income (loss), net of tax, was as follows:

	Securities Available For Sale			Post- retirement Benefit			Cash Flow Hedge Derivatives			Accumulated Other Comprehensive Income (Loss)
	(In Thousands)
Balance January 1, 2022	$	(4,023	)	$	(79	)	$	674		$	(3,428	)
Other comprehensive income/(loss) before reclassifications		(58,613	)		—			(12,830	)		(71,443	)
Amounts reclassified from accumulated other comprehensive income		—			—			(626	)		(626	)
Net other comprehensive income/(loss) during period		(58,613	)		—			(13,456	)		(72,069	)
Balance March 31, 2022	$	(62,636	)	$	(79	)	$	(12,782	)	$	(75,497	)
Balance January 1, 2021	$	15,083		$	(79	)	$	—		$	15,004
Other comprehensive income (loss) before reclassifications		(15,098	)		—			—			(15,098	)
Amounts reclassified from accumulated other comprehensive income		(408	)		—			—			(408	)
Net other comprehensive income during period		(15,506	)		—			—			(15,506	)
Balance March 31, 2021	$	(423	)	$	(79	)	$	—		$	(502	)

XML

Fair Value - Additional information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair value determination of loans held for sale description	The fair value of conventional loans held for sale is determined using the current 15 day forward contract price for either 15 or 30 year conventional mortgages (Level 2). The fair value of permanent construction loans held for sale is determined using the current 60 day forward contract price for 15 or 30 years conventional mortgages which is then adjusted for unobservable market data such as estimated fall out rates and estimated time from origination to completion of construction (Level 3).
Loans held for sale, fair value disclosure	$ 153,498		$ 162,947
Available for sale assets at fair value	0	$ 0
Residential Mortgage Loans [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Loans held for sale, fair value disclosure	37,000		28,800
Loans held for sale, contractual balance	36,100		27,700
Gains (losses) on sale of loans held for sale for the change in fair value	(1,500)	4,300
Permanent Construction Loans [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Loans held for sale, fair value disclosure	116,500		134,200
Loans held for sale, contractual balance	120,800		$ 125,000
Gains (losses) on sale of loans held for sale for the change in fair value	$ (13,400)	$ 5,600
Minimum [Member] | Real Estate held for sale [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair value input discount rate	0.00%
Maximum [Member] | Real Estate held for sale [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair value input discount rate	30.00%

XML

Fair Value - Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Available for sale securities:
Securities available-for-sale, carried at fair value	$ 1,219,365	$ 1,206,260
Collateralized mortgage obligations [Member]
Available for sale securities:
Securities available-for-sale, carried at fair value	305,529	260,168
Fair Value, Inputs, Level 2 [Member]
Available for sale securities:
Securities available-for-sale, carried at fair value	1,219,365	1,206,260
Fair Value, Inputs, Level 2 [Member] | Collateralized mortgage obligations [Member]
Available for sale securities:
Securities available-for-sale, carried at fair value	305,529	260,168
Obligations of U.S. government corporations and agencies [Member]
Available for sale securities:
Securities available-for-sale, carried at fair value	161,433	174,710
Obligations of U.S. government corporations and agencies [Member] | Fair Value, Inputs, Level 2 [Member]
Available for sale securities:
Securities available-for-sale, carried at fair value	161,433	174,710
Mortgage-Backed Securities [Member]
Available for sale securities:
Securities available-for-sale, carried at fair value	200,824	206,751
Mortgage-Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Available for sale securities:
Securities available-for-sale, carried at fair value	200,824	206,751
Asset-backed Securities [Member]
Available for sale securities:
Securities available-for-sale, carried at fair value	213,097	220,536
Asset-backed Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Available for sale securities:
Securities available-for-sale, carried at fair value	213,097	220,536
Corporate bonds [Member]
Available for sale securities:
Securities available-for-sale, carried at fair value	72,719	70,893
Corporate bonds [Member] | Fair Value, Inputs, Level 2 [Member]
Available for sale securities:
Securities available-for-sale, carried at fair value	72,719	70,893
Obligations of state and political subdivisions [Member]
Available for sale securities:
Securities available-for-sale, carried at fair value	265,764	273,202
Obligations of state and political subdivisions [Member] | Fair Value, Inputs, Level 2 [Member]
Available for sale securities:
Securities available-for-sale, carried at fair value	265,764	273,202
Equity Securities [Member]
Available for sale securities:
Securities available-for-sale, carried at fair value	13,454	14,097
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Available for sale securities:
Securities available-for-sale, carried at fair value	13,454	14,097
Loans Held for Sale, at Fair Value [Member]
Available for sale securities:
Securities available-for-sale, carried at fair value	153,498	162,947
Loans Held for Sale, at Fair Value [Member] | Fair Value, Inputs, Level 2 [Member]
Available for sale securities:
Securities available-for-sale, carried at fair value	37,014	28,780
Loans Held for Sale, at Fair Value [Member] | Fair Value, Inputs, Level 3 [Member]
Available for sale securities:
Securities available-for-sale, carried at fair value	116,484	134,167
Interest Rate Swap Assets [Member]
Available for sale securities:
Securities available-for-sale, carried at fair value	2,338	1,287
Interest Rate Swap Assets [Member] | Fair Value, Inputs, Level 2 [Member]
Available for sale securities:
Securities available-for-sale, carried at fair value	2,338	1,287
Mortgage banking derivative [Member]
Available for sale securities:
Securities available-for-sale, carried at fair value	9,923	2,336
Mortgage banking derivative [Member] | Fair Value, Inputs, Level 2 [Member]
Available for sale securities:
Securities available-for-sale, carried at fair value	9,923	2,336
Interest Rate Swap Liability [Member]
Available for sale securities:
Securities available-for-sale, carried at fair value	2,338
Interest Rate Swap Liability [Member] | Fair Value, Inputs, Level 2 [Member]
Available for sale securities:
Securities available-for-sale, carried at fair value	2,338	1,292
Cash Flow Hedge Derivative Liability [Member]
Available for sale securities:
Securities available-for-sale, carried at fair value	16,180	$ 1,292
Cash Flow Hedge Derivative Liability [Member] | Fair Value, Inputs, Level 2 [Member]
Available for sale securities:
Securities available-for-sale, carried at fair value	$ 16,180

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Fair Value - Summary of Reconciliation of all Assets Measured at Fair Value on Recurring Basis using Significant Unobservable Inputs (Level 3) (Details) - Construction Loans Held for Sale [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Balance of recurring Level 3 assets at beginning of period	$ 134,167	$ 123,029
Total gains (losses) for the period, Included in change in fair value of loans held for sale	(13,459)	(5,568)
Originations	36,343	34,003
Sales	(40,567)	(16,826)
Balance of recurring Level 3 assets at end of period	$ 116,484	$ 134,638

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Fair Value - Schedule of Level 3 Assets and Liabilities Measured At Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Loans held for sale, carried at fair value	$ 153,498	$ 162,947
Range of Input 0.00% - 2.18% [Member]
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Loans held for sale, carried at fair value	$ 116,484
Fair Value Measurements, Valuation Processes, Description	Quoted market price
Unobservable Inputs, Fair Value	Time discount using the 60 day forward contract
Fair Value, Range of Input, Minimum	0.00%
Fair Value, Range of Input, Maximum	1.52%
Range of Input 0.00% - 0.24% [Member]
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Loans held for sale, carried at fair value		$ 134,167
Fair Value Measurements, Valuation Processes, Description		Quoted market price
Unobservable Inputs, Fair Value		Time discount using the 60 day forward contract
Fair Value, Range of Input, Minimum		0.00%
Fair Value, Range of Input, Maximum		1.86%

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Fair Value - Assets and Liabilities Measured on a Non-Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Individually analyzed loans
Total individually analyzed loans	$ 10,232	$ 11,313
Mortgage servicing rights	20,715	19,538
Residential [Member]
Individually analyzed loans
Total individually analyzed loans	16
Commercial Real Estate [Member]
Individually analyzed loans
Total individually analyzed loans	3,218	2,749
Commercial [Member]
Individually analyzed loans
Total individually analyzed loans	6,998	8,564
Fair Value, Inputs, Level 2 [Member]
Individually analyzed loans
Mortgage servicing rights	20,715	19,538
Fair Value, Inputs, Level 3 [Member]
Individually analyzed loans
Total individually analyzed loans	10,232	11,313
Fair Value, Inputs, Level 3 [Member] | Residential [Member]
Individually analyzed loans
Total individually analyzed loans	16
Fair Value, Inputs, Level 3 [Member] | Commercial Real Estate [Member]
Individually analyzed loans
Total individually analyzed loans	3,218	2,749
Fair Value, Inputs, Level 3 [Member] | Commercial [Member]
Individually analyzed loans
Total individually analyzed loans	$ 6,998	$ 8,564

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Fair Value - Schedule of Level 3 Assets and Liabilities Measured At Fair Value on a Non-Recurring Basis (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Individually analyzed Loans- Applies to loan classes with an appraisal valuation	$ 5,199	$ 5,821
Individually analyzed Loans- Applies to loan classes without an appraisal valuation	5,033	5,492
Individually analyzed Loans- Applies to all loan classes	$ 10,232	$ 11,313
Appraisals Which Utilize Sales Comparison, Net Income and Cost Approach [Member]
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Fair Value Measurements, Valuation Processes, Description	Appraisals which utilize sales comparison, net income and cost approach	Appraisals which utilize sales comparison, net income and cost approach
Unobservable Inputs, Fair Value	Discounts for collection issues and changes in market conditions	Discounts for collection issues and changes in market conditions
Fair Value, Range of Input, Minimum	20.00%	20.00%
Fair Value, Range of Input, Maximum	50.00%	50.00%
Fair Value Measurement Weighted Average Range	31.38%	35.18%
Equitable Recoupment Claim Estimate [Member]
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Fair Value Measurements, Valuation Processes, Description	Equitable Recoupment claim estimate	Equitable Recoupment claim estimate
Unobservable Inputs, Fair Value	Discounts for collection issues	Discounts for collection issues
Fair Value Measurement Range Of Input	25.00%	25.00%
Fair Value Measurement Weighted Average Range	25.00%	25.00%

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Fair Value - Balance Sheet Grouping (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Financial Assets, Carrying Value:
Cash and cash equivalents, Carrying Value	$ 153,766	$ 161,566
Securities available for sale, Carrying Value	1,219,365	1,206,260
Equity securities, Carrying Value	13,454	14,097
Accurued interest carrying value	21,765	20,767
Federal Home Loan Bank Stock, Carrying Value	15,332	11,585
Loans receivable, net, Carrying Value	5,321,136	5,229,700
Loans held for sale, Carrying Value	153,498	162,947
Financial Liabilities, Carrying Value:
Deposits, Carrying Value	6,317,235	6,282,051
Advances from the Federal Home Loan Bank	150,000
Subordinated debentures, Carrying Value	85,008	84,976
Financial Assets, Fair Value:
Cash and cash equivalents, Fair Value	153,766	161,566
Securities available-for-sale, carried at fair value	1,219,365	1,206,260
Equity securities, Fair Value	13,454	14,097
Accrued interest receivable fair value	21,765	20,767
Loans receivable, net, Fair Value	5,319,654	5,265,689
Loans held for sale, fair value disclosure	153,498	162,947
Financial Liabilities, Fair Value:
Deposits, Fair Value	6,306,616	6,280,336
Advances from Federal Home Loan	150,000
Subordinated debentures, Fair Value	84,168	85,417
Fair Value, Inputs, Level 1 [Member]
Financial Assets, Fair Value:
Cash and cash equivalents, Fair Value	153,766	161,566
Equity securities, Fair Value	13,454	14,097
Accrued interest receivable fair value	21,765	20,767
Financial Liabilities, Fair Value:
Deposits, Fair Value	5,592,560	5,481,928
Fair Value, Inputs, Level 2 [Member]
Financial Assets, Fair Value:
Securities available-for-sale, carried at fair value	1,219,365	1,206,260
Loans held for sale, fair value disclosure	37,014	28,780
Financial Liabilities, Fair Value:
Deposits, Fair Value	714,056	798,408
Advances from Federal Home Loan	150,000
Subordinated debentures, Fair Value	84,168
Fair Value, Inputs, Level 3 [Member]
Financial Assets, Fair Value:
Loans receivable, net, Fair Value	5,319,654	5,265,689
Loans held for sale, fair value disclosure	$ 116,484	134,167
Financial Liabilities, Fair Value:
Subordinated debentures, Fair Value		$ 85,417

XML

Stock Compensation Plans - Additional information (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	35,661		35,661
Stock Option Period, Description	All options expire ten years from the date of grant. Vested options of retirees expire on the earlier of the scheduled expiration date or one year after the retirement date.
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	0	0
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition	1 month
Allocated Share-based Compensation Expense	$ 34,000	$ 1,000,000.0
Compensation Expense, Maximum	6,900,000
Estimated Compensation Expense, Excepted	4,600,000
Unrecognized Compensation Expense	$ 1,700,000
Executive Long-Term Equity Incentive Plan [Member]
Stock Option Period, Description	The value of awards issued in 2021 and 2022 under the Executive LTIP will be determined individually at the end of each respective 36 month performance period ending December 31. The benefits earned under these LTIPs will be paid out in equity in the first quarter following the end of the performance period. The participants will receive all or a portion of the award if their employment is terminated by the Company without cause, by the participant in certain situations, or by death, disability or retirement.
Share-based Compensation, Performance Period	3 years
Executive Long-Term Equity Incentive Plan [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate	20.00%
Executive Long-Term Equity Incentive Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate	50.00%
Equity Plan 2018 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	900,000
Long Term Equity Incentive Plan2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	1,200,000
Short Term Equity Incentive Plan 2015 [Member]
Stock Option Period, Description	The final amount of benefits under the STIPs is determined as of December 31 of the same year and paid out in cash in the first quarter of the following year.
Performance Stock Units (PSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	80,794
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	242,468		161,674
Performance Stock Units (PSUs) [Member] | Executive Long-Term Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	80,794
Restricted Stock Awards (RSAs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	19,936
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	49,830		58,260
Restricted Stock Awards (RSAs) [Member] | Key Long-Term Equity Incentive Plan 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	19,612
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	324
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	39,953		51,773
Restricted Stock Units (RSUs) [Member] | Key Long-Term Equity Incentive Plan 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		17,542
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
Restricted Stock Units (RSUs) [Member] | Key Long-Term Equity Incentive Plan 2015 [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate	5.00%
Restricted Stock Units (RSUs) [Member] | Key Long-Term Equity Incentive Plan 2015 [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate	10.00%
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
Restricted Share Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	332,251
Short Term Incentive Plan [Member]
Allocated Share-based Compensation Expense	$ 181,000		$ 2,700,000

XML

Stock Compensation Plans - Stock option activity (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($) $ / shares shares
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Options outstanding, January 1, 2021 | shares	35,661
Option Outstanding, Exercised | shares	0
Options outstanding, September 30, 2021 | shares	35,661
Exercisable at September 30, 2021 | shares	35,661
Weighted Average Exercise Price, Options outstanding, January 1, 2021 | $ / shares	$ 21.72
Weighted Average Exercise Price, Exercised | $ / shares	0
Weighted Average Exercise Price, Options outstanding, September 30, 2021 | $ / shares	21.72
Weighted Average Exercise Price, Exercisable at September 30, 2021 | $ / shares	$ 21.72
Weighted Average Remaining Contractual Term (In years), outstanding, September 30, 2021	4 years 1 month 2 days
Weighted Average Remaining Contractual Terms (In years), Exercisable at September 30, 2021	4 years 1 month 2 days
Aggregate Intrinsic Value, outstanding, September 30, 2021 | $	$ 310,597
Aggregate Intrinsic Value, Exercisable at September 30, 2021 | $	$ 310,597

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Stock Compensation Plans - Tax benefits realized (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2021 USD ($)
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Proceeds of options exercised	$ 8
Intrinsic value of options exercised	$ 11

XML

Stock Compensation Plans - Restricted stock grants (Details)	3 Months Ended
	Mar. 31, 2022 $ / shares shares
Performance Stock Units [Member]
Shares, Unvested at January 1, 2021 | shares	161,674
Shares, Granted | shares	80,794
Shares, Unvested at September 30, 2021 | shares	242,468
Weighted -Average Grant Date Fair Value, Unvested at January 1, 2021 | $ / shares	$ 28.36
Weighted-Average Grant Date Fair Value, Granted | $ / shares	30.65
Weighted-Average Grant Date Fair Value, Unvested at September 30, 2021 | $ / shares	$ 29.12
Restricted Stock Units (RSUs) [Member]
Shares, Unvested at January 1, 2021 | shares	51,773
Shares, Vested | shares	(8,090)
Shares, Forfeited | shares	(3,730)
Shares, Unvested at September 30, 2021 | shares	39,953
Weighted -Average Grant Date Fair Value, Unvested at January 1, 2021 | $ / shares	$ 28.44
Weighted-Average Grant Date Fair Value, Vested | $ / shares	26.40
Weighted-Average Grant Date Fair Value, Forfeited | $ / shares	28.20
Weighted-Average Grant Date Fair Value, Unvested at September 30, 2021 | $ / shares	$ 28.88
Restricted Stock Awards (RSAs) [Member]
Shares, Unvested at January 1, 2021 | shares	58,260
Shares, Granted | shares	19,936
Shares, Vested | shares	(27,580)
Shares, Forfeited | shares	(786)
Shares, Unvested at September 30, 2021 | shares	49,830
Weighted -Average Grant Date Fair Value, Unvested at January 1, 2021 | $ / shares	$ 29.71
Weighted-Average Grant Date Fair Value, Granted | $ / shares	30.66
Weighted-Average Grant Date Fair Value, Vested | $ / shares	26.93
Weighted-Average Grant Date Fair Value, Forfeited | $ / shares	31.84
Weighted-Average Grant Date Fair Value, Unvested at September 30, 2021 | $ / shares	$ 31.60

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Dividends on Common Stock (Details) - $ / shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Dividends Common Stock [Abstract]
Common Stock, Dividends, Per Share, Cash Paid	$ 0.30	$ 0.24
Common Stock, Dividends, Per Share, Declared	$ 0.30	$ 0.24

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Earnings Per Common Share - Computation of basic and diluted earnings per common share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Basic Earnings Per Share:
Net income available to common shareholders	$ 26,357	$ 40,996
Less: income allocated to participating securities	35	43
Net income allocated to common shareholders	$ 26,322	$ 40,953
Weighted average common shares outstanding including participating securities	36,026	37,332
Less: Participating securities	48	39
Average common shares	35,978	37,293
Basic earnings per common share	$ 0.73	$ 1.10
Diluted Earnings Per Share:
Net income allocated to common shareholders	$ 26,322	$ 40,953
Weighted average common shares outstanding for basic earnings per common share	35,978	37,293
Add: Dilutive effects of stock options and restricted stock units	112	64
Average shares and dilutive potential common shares	36,090	37,357
Diluted earnings per common share	$ 0.73	$ 1.10

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Earnings Per Common Share - Additional Information (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Earnings Per Share Basic [Abstract]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	16,206	0

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Investment Securities - Summary of available-for-sale securities - (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Marketable Securities [Line Items]
Available-for-Sale Securities, Amortized Cost	$ 1,298,651	$ 1,211,353
Available-for-Sale Securities, Gross Unrealized Gains	2,339	9,866
Available-for-Sale Securities, Gross Unrealized Loss	(81,625)	(14,959)
Available-for-Sale Securities, Fair Value	1,219,365	1,206,260
Obligations of U.S. government corporations and agencies [Member]
Marketable Securities [Line Items]
Available-for-Sale Securities, Amortized Cost	174,400	174,644
Available-for-Sale Securities, Gross Unrealized Gains	3	984
Available-for-Sale Securities, Gross Unrealized Loss	(12,970)	(918)
Available-for-Sale Securities, Fair Value	161,433	174,710
Mortgage-Backed Securities [Member]
Marketable Securities [Line Items]
Available-for-Sale Securities, Amortized Cost	215,800	208,281
Available-for-Sale Securities, Gross Unrealized Gains	114	851
Available-for-Sale Securities, Gross Unrealized Loss	(15,090)	(2,381)
Available-for-Sale Securities, Fair Value	200,824	206,751
Collateralized mortgage obligations [Member]
Marketable Securities [Line Items]
Available-for-Sale Securities, Amortized Cost	326,650	264,541
Available-for-Sale Securities, Gross Unrealized Gains		363
Available-for-Sale Securities, Gross Unrealized Loss	(21,122)	(4,736)
Available-for-Sale Securities, Fair Value	305,528	260,168
Asset-backed securities [Member]
Marketable Securities [Line Items]
Available-for-Sale Securities, Amortized Cost	216,998	221,545
Available-for-Sale Securities, Gross Unrealized Gains	487	610
Available-for-Sale Securities, Gross Unrealized Loss	(4,388)	(1,619)
Available-for-Sale Securities, Fair Value	213,097	220,536
Corporate bonds [Member]
Marketable Securities [Line Items]
Available-for-Sale Securities, Amortized Cost	74,395	70,008
Available-for-Sale Securities, Gross Unrealized Gains	158	1,160
Available-for-Sale Securities, Gross Unrealized Loss	(1,834)	(275)
Available-for-Sale Securities, Fair Value	72,719	70,893
Obligations of state and political subdivisions [Member]
Marketable Securities [Line Items]
Available-for-Sale Securities, Amortized Cost	290,408	272,334
Available-for-Sale Securities, Gross Unrealized Gains	1,577	5,898
Available-for-Sale Securities, Gross Unrealized Loss	(26,221)	(5,030)
Available-for-Sale Securities, Fair Value	$ 265,764	$ 273,202

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Investment Securities - Schedule of Investments Classified by Contractual Maturity Date (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Marketable Securities [Abstract]
Available-for-sale, Due in one year or less, Amortized Cost	$ 3,230
Available-for-sale, Due after one year through five years, Amortized Cost	43,732
Available-for-sale, Due after five years through ten years, Amortized Cost	205,366
Available-for-sale, Due after ten years, Amortized Cost	286,875
Available-for-sale, MBS/CMO/ABS, Amortized Cost	759,448
Available-for-Sale Securities, Amortized Cost	1,298,651	$ 1,211,353
Available-for-sale, Due in one year or less, Fair Value	3,235
Available-for-sale, Due after one year through five years, Fair Value	42,536
Available-for-sale, Due after five years through ten years, Fair Value	195,580
Available-for-sale, Due after ten years, Fair Value	258,565
Available-for-sale,MBS/CMO/ABS, Fair Value	719,449
Available-for-sale, Fair Value	$ 1,219,365	$ 1,206,260

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Investment Securities - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Marketable Securities [Line Items]
Security Owned and Pledged as Collateral Carrying Value	$ 555,000,000.0		$ 564,400,000
Realized available-for-sale securities gains (losses)	0	$ 516,000,000
Preferred and common stock held as investment securities	13,454,000		14,097,000
Unrealized loss on equity securities	(643,000)	$ 1,610,000
Preferred and Common Stock [Member]
Marketable Securities [Line Items]
Preferred and common stock held as investment securities	$ 13,400,000		$ 14,100,000

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Investment Securities - Unrealized Gain (Loss) on Investments (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Total temporarily impaired securities, Duration Unrealized Loss Position, Less Than Twelve Months, Fair Value	$ 941,843	$ 726,921
Total temporarily impaired securities, Duration of Unrealized Loss Position, Less Than 12 Months, Gross Unrealized Loss	60,427	12,916
Total temporarily impaired securities, Duration of Unrealized Loss Position, Twelve Months or Longer, Fair Value	164,913	51,446
Total temporarily impaired securities, Duration of Unrealized Loss Position, Twelve Months or Longer, Gross Unrealized Loss	21,198	2,043
Total temporarily impaired securities, Duration of Unrealized Loss Position, Fair Value	1,106,756	778,367
Total temporarily impaired securities, Duration of Unrealized Loss Position, Unrealized Loss	81,625	14,959
Obligations of U.S. government corporations and agencies [Member]
Available-for-sale securities, Duration of Unrealized Loss Position, Less than 12 Month, Fair Value	152,407	73,810
Available-for-sale Securities, Duration of Unrealized Loss Position, Less than 12 Month, Gross Unrealized Loss	(11,201)	(918)
Available-for-sale securities, Duration of Unrealized Loss Position, 12 Month or Longer, Fair Value	8,503
Available-for-sale Securities, Duration of Unrealized Loss Position, 12 Month or Longer, Gross Unrealized Loss	(1,769)
Available-for-sale securities, Total, Fair Value	160,910	73,810
Available-for-sale securities, Total, Unrealized Loss	(12,970)	(918)
Mortgage-Backed Securities [Member]
Available-for-sale securities, Duration of Unrealized Loss Position, Less than 12 Month, Fair Value	134,953	167,379
Available-for-sale Securities, Duration of Unrealized Loss Position, Less than 12 Month, Gross Unrealized Loss	(9,319)	(2,048)
Available-for-sale securities, Duration of Unrealized Loss Position, 12 Month or Longer, Fair Value	61,098	13,689
Available-for-sale Securities, Duration of Unrealized Loss Position, 12 Month or Longer, Gross Unrealized Loss	(5,771)	(333)
Available-for-sale securities, Total, Fair Value	196,051	181,068
Available-for-sale securities, Total, Unrealized Loss	(15,090)	(2,381)
Collateralized mortgage obligations [Member]
Available-for-sale securities, Duration of Unrealized Loss Position, Less than 12 Month, Fair Value	300,681	222,134
Available-for-sale Securities, Duration of Unrealized Loss Position, Less than 12 Month, Gross Unrealized Loss	(20,737)	(4,736)
Available-for-sale securities, Duration of Unrealized Loss Position, 12 Month or Longer, Fair Value	4,847
Available-for-sale Securities, Duration of Unrealized Loss Position, 12 Month or Longer, Gross Unrealized Loss	(385)
Available-for-sale securities, Total, Fair Value	305,528	222,134
Available-for-sale securities, Total, Unrealized Loss	(21,122)	(4,736)
Corporate bonds [Member]
Available-for-sale securities, Duration of Unrealized Loss Position, Less than 12 Month, Fair Value	60,809	24,173
Available-for-sale Securities, Duration of Unrealized Loss Position, Less than 12 Month, Gross Unrealized Loss	(1,786)	(270)
Available-for-sale securities, Duration of Unrealized Loss Position, 12 Month or Longer, Fair Value	1,212	504
Available-for-sale Securities, Duration of Unrealized Loss Position, 12 Month or Longer, Gross Unrealized Loss	(48)	(5)
Available-for-sale securities, Total, Fair Value	62,021	24,677
Available-for-sale securities, Total, Unrealized Loss	(1,834)	(275)
Obligations of state and political subdivisions [Member]
Available-for-sale securities, Duration of Unrealized Loss Position, Less than 12 Month, Fair Value	125,688	99,199
Available-for-sale Securities, Duration of Unrealized Loss Position, Less than 12 Month, Gross Unrealized Loss	(13,129)	(3,355)
Available-for-sale securities, Duration of Unrealized Loss Position, 12 Month or Longer, Fair Value	73,619	34,548
Available-for-sale Securities, Duration of Unrealized Loss Position, 12 Month or Longer, Gross Unrealized Loss	(13,092)	(1,675)
Available-for-sale securities, Total, Fair Value	199,307	133,747
Available-for-sale securities, Total, Unrealized Loss	(26,221)	(5,030)
Asset-backed securities [Member]
Available-for-sale securities, Duration of Unrealized Loss Position, Less than 12 Month, Fair Value	167,305	140,226
Available-for-sale Securities, Duration of Unrealized Loss Position, Less than 12 Month, Gross Unrealized Loss	(4,255)	(1,589)
Available-for-sale securities, Duration of Unrealized Loss Position, 12 Month or Longer, Fair Value	15,634	2,705
Available-for-sale Securities, Duration of Unrealized Loss Position, 12 Month or Longer, Gross Unrealized Loss	(133)	(30)
Available-for-sale securities, Total, Fair Value	182,939	142,931
Available-for-sale securities, Total, Unrealized Loss	$ (4,388)	$ (1,619)

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Loans - Loans receivable (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Real Estate:
Real Estate	$ 4,601,238	$ 4,480,630
Other Loans:
Loans before deferred loan origination fees and costs	5,905,261	5,767,039
Deduct:
Undisbursed construction loan funds	(525,545)	(477,890)
Net deferred loan origination fees and costs	(8,615)	(7,019)
Allowance for credit losses	(67,195)	(66,468)	$ (74,754)	$ (82,079)
Total loans	5,321,136	5,229,700
Other Loan [Member]
Other Loans:
Total loans	1,304,023	1,286,409
Residential Real Estate [Member]
Real Estate:
Real Estate	1,222,057	1,167,466
Commercial Real Estate [Member]
Real Estate:
Real Estate		2,450,349
Construction Loans [Member]
Real Estate:
Real Estate	883,712	862,815
Commercial [Member]
Real Estate:
Real Estate	2,495,469
Other Loans:
Total loans	910,553	895,638
Deduct:
Allowance for credit losses	(13,821)	(13,410)	(12,191)	(11,665)
Home Equity and Improvement [Member]
Other Loans:
Total loans	261,176	264,354
Consumer Finance [Member]
Other Loans:
Total loans	132,294	126,417
Deduct:
Allowance for credit losses	$ (1,001)	$ (1,405)	$ (1,826)	$ (1,983)

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Loans - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Sep. 30, 2021	Dec. 31, 2021
Cash paid for paycheck protection program	$ 636,900,000
Anticipated credit losses	626,000	$ (7,514,000)
Loans and Leases Receivable, Loans in Process	525,545,000			$ 477,890,000
Scenario Plan [Member]
Anticipated credit losses	5,300,000
Subsequently Defaulted [Member]
Financing Receivable, Allowance for Credit Losses, Period Increase (decrease)	0
TDRs [Member]
Financing Receivable, Modifications, Recorded Investment	10,600,000			11,900,000
Specified Reserves, Provision for Troubled Debt Restructurings	358,000,000			378,000,000
Loans and Leases Receivable, Impaired, Commitment to Lend	319,000			348,000
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down	4,300,000
Financing Receivable, Allowance for Credit Losses, Period Increase (decrease)	1,000,000	$ 6,000,000
TDRs [Member] | Minimum [Member]
Loans receivable deferred	$ 0			0
TDRs [Member] | Minimum [Member] | COVID-19 [Member]
Loan modification payment term for either interest only deferral or principal and interest deferral			1 month
TDRs [Member] | Maximum [Member] | COVID-19 [Member]
Loan modification payment term for either interest only deferral or principal and interest deferral	9 months
Consumer Portfolio Segment [Member]
Loans and Leases Receivable, Loans in Process	$ 4,100,000			3,300,000
Other Loans [Member] | Commercial [Member]
PPP loans	18,700,000			$ 58,900,000
Unfunded Loan Commitments [Member]
Unfunded loan commitments	$ 1,500,000,000

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Loans - Schedule of allowance for credit loss (ACL) activity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Allowance	$ 66,468	$ 82,079
Charge-Offs	289	109
Recoveries	390	298
Provisions	626	(7,514)
Ending Allowance	67,195	74,754
Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Allowance	13,410	11,665
Charge-Offs	10	70
Recoveries	102	198
Provisions	319	398
Ending Allowance	13,821	12,191
Consumer Finance [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Allowance	1,405	1,983
Charge-Offs	103	36
Recoveries	114	27
Provisions	(415)	(148)
Ending Allowance	1,001	1,826
Residential Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Allowance	12,029	17,534
Charge-Offs	140
Recoveries	81	8
Provisions	(330)	(34)
Ending Allowance	11,640	17,508
Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Allowance	32,399	43,417
Charge-Offs	7
Recoveries	59	36
Provisions	1,750	(8,181)
Ending Allowance	34,201	35,272
Construction Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Allowance	3,004	2,741
Charge-Offs
Recoveries
Provisions	(391)	35
Ending Allowance	2,613	2,776
Home Equity and Improvement [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Allowance	4,221	4,739
Charge-Offs	29	3
Recoveries	34	29
Provisions	(307)	416
Ending Allowance	$ 3,919	$ 5,181

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Loans - Summary of Amortized Cost Basis of Collateral-dependent Loans by Class of Loans and Collateral Type (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 5,321,136	$ 5,229,700
Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	19,243	20,199
Equipment and Machinery [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans		160
Inventory and Receivables [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	13,711	14,023
Vehicles [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	21	25
Collateral Pledged [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	32,975	34,407
Real Estate Loans [Member] | Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	78
Real Estate Loans [Member] | Real Estate [Member] | Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans		226
Real Estate Loans [Member] | Real Estate [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans		18,399
Real Estate Loans [Member] | Real Estate [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	17,592
Real Estate Loans [Member] | Collateral Pledged [Member] | Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	78	226
Real Estate Loans [Member] | Collateral Pledged [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	17,592	18,399
Other Loans [Member] | Real Estate [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	1,573
Other Loans [Member] | Real Estate [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans		1,574
Other Loans [Member] | Equipment and Machinery [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans		160
Other Loans [Member] | Inventory and Receivables [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	13,711
Other Loans [Member] | Inventory and Receivables [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans		14,023
Other Loans [Member] | Vehicles [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	21
Other Loans [Member] | Vehicles [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans		25
Other Loans [Member] | Collateral Pledged [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 15,305	$ 15,782

XML

Loans - Schedule of Non-Performing Loans and Real Estate Owned (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Loans And Leases Receivable Net Reported Amount [Abstract]
Non-accrual loans with reserve	$ 32,930	$ 35,480
Non-accrual loans without reserve	14,368	12,534
Total non-performing loans	47,298	48,014
Real estate and other assets held for sale	253	171
Total non-performing assets	47,551	48,185
Troubled debt restructuring, still accruing	$ 6,287	$ 7,768

XML

Loans - Schedule of Financing Receivables, Non Accrual Status (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due	$ 44,077	$ 38,683
Total Non-Accrual	47,298	48,014
Current [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due	5,344,254	5,257,485
Current [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due	13,686	3,603
Current [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due	4,968	10,200
Current [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due	25,423	24,880
Real Estate Loans [Member] | Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due	11,288	13,061
Total Non-Accrual	9,280	9,034
Real Estate Loans [Member] | Residential [Member] | Current [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due	1,202,041	1,144,533
Real Estate Loans [Member] | Residential [Member] | Current [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due	307	234
Real Estate Loans [Member] | Residential [Member] | Current [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due	3,327	5,340
Real Estate Loans [Member] | Residential [Member] | Current [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due	7,654	7,487
Real Estate Loans [Member] | Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due	8,614	8,111
Total Non-Accrual	14,423	14,621
Real Estate Loans [Member] | Commercial Real Estate [Member] | Current [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due	2,486,865	2,439,552
Real Estate Loans [Member] | Commercial Real Estate [Member] | Current [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due	549	96
Real Estate Loans [Member] | Commercial Real Estate [Member] | Current [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due	6	847
Real Estate Loans [Member] | Commercial Real Estate [Member] | Current [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due	8,059	7,168
Real Estate Loans [Member] | Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due	0	1,789
Total Non-Accrual	0	0
Real Estate Loans [Member] | Construction [Member] | Current [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due	358,167	383,136
Real Estate Loans [Member] | Construction [Member] | Current [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due	0
Real Estate Loans [Member] | Construction [Member] | Current [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due	0	1,746
Real Estate Loans [Member] | Construction [Member] | Current [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due	0	0
Other Loans [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due	11,307	944
Total Non-Accrual	11,386	11,531
Other Loans [Member] | Commercial [Member] | Current [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due	890,418	884,025
Other Loans [Member] | Commercial [Member] | Current [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due	10,371	42
Other Loans [Member] | Commercial [Member] | Current [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due		35
Other Loans [Member] | Commercial [Member] | Current [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due	936	867
Other Loans [Member] | Home Equity and Improvement [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due	2,861	3,893
Total Non-Accrual	2,171	2,051
Other Loans [Member] | Home Equity and Improvement [Member] | Current [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due	255,180	257,055
Other Loans [Member] | Home Equity and Improvement [Member] | Current [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due	756	1,851
Other Loans [Member] | Home Equity and Improvement [Member] | Current [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due	334	408
Other Loans [Member] | Home Equity and Improvement [Member] | Current [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due	1,771	1,634
Other Loans [Member] | Consumer Finance [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due	4,087	3,659
Total Non-Accrual	2,100	1,873
Other Loans [Member] | Consumer Finance [Member] | Current [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due	129,659	124,073
Other Loans [Member] | Consumer Finance [Member] | Current [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due	1,530	1,112
Other Loans [Member] | Consumer Finance [Member] | Current [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due	598	819
Other Loans [Member] | Consumer Finance [Member] | Current [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due	1,959	1,728
PCD [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due	5,920	7,226
Total Non-Accrual	7,938	8,904
PCD [Member] | Current [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due	21,924	25,111
PCD [Member] | Current [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due	173	225
PCD [Member] | Current [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due	703	1,005
PCD [Member] | Current [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due	$ 5,044	$ 5,996

XML

Loans - Troubled Debt Restructurings on Financing Receivables (Details) - TDRs [Member] $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($) Loan	Mar. 31, 2021 USD ($) Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Troubled Debt Restructurings, Number of Loans | Loan	3	5
Troubled Debt Restructurings, Recorded Investment | $	$ 272	$ 859
Residential Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Troubled Debt Restructurings, Number of Loans | Loan	1	2
Troubled Debt Restructurings, Recorded Investment | $	$ 252	$ 150
Home Equity and Improvement [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Troubled Debt Restructurings, Number of Loans | Loan		3
Troubled Debt Restructurings, Recorded Investment | $		$ 709
Consumer Finance [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Troubled Debt Restructurings, Number of Loans | Loan	2
Troubled Debt Restructurings, Recorded Investment | $	$ 20

XML

Loans - Schedule of Risk Category of Loans by Class of Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Net	$ 5,388,331	$ 5,296,168
Unclassified [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Net	5,212,559	5,097,203
Special Mention [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Net	115,501	129,430
Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Net	60,271	69,535
Total Classified [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Net	60,271	69,535
Residential Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Net	1,213,329	1,157,594
Residential Real Estate [Member] | Unclassified [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Net	1,202,103	1,146,212
Residential Real Estate [Member] | Special Mention [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Net	1,295	1,316
Residential Real Estate [Member] | Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Net	9,931	10,066
Residential Real Estate [Member] | Total Classified [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Net	9,931	10,066
Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Net	2,495,479	2,447,663
Commercial Real Estate [Member] | Unclassified [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Net	2,376,266	2,324,846
Commercial Real Estate [Member] | Special Mention [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Net	93,550	93,676
Commercial Real Estate [Member] | Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Net	25,663	29,141
Commercial Real Estate [Member] | Total Classified [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Net	25,663	29,141
Construction Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Net	358,167	384,925
Construction Loans [Member] | Unclassified [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Net	358,167	365,403
Construction Loans [Member] | Special Mention [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Net		19,522
Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Net	901,725	884,969
Commercial [Member] | Unclassified [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Net	869,383	856,402
Commercial [Member] | Special Mention [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Net	20,558	14,815
Commercial [Member] | Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Net	11,784	13,752
Commercial [Member] | Total Classified [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Net	11,784	13,752
Home Equity and Improvement [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Net	258,041	260,948
Home Equity and Improvement [Member] | Unclassified [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Net	255,883	258,914
Home Equity and Improvement [Member] | Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Net	2,158	2,034
Home Equity and Improvement [Member] | Total Classified [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Net	2,158	2,034
PCD [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Net	27,844	32,337
PCD [Member] | Unclassified [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Net	19,110	19,547
PCD [Member] | Special Mention [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Net	98	101
PCD [Member] | Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Net	8,636	12,689
PCD [Member] | Total Classified [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Net	8,636	12,689
Consumer Finance [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Net	133,746	127,732
Consumer Finance [Member] | Unclassified [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Net	131,647	125,879
Consumer Finance [Member] | Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Net	2,099	1,853
Consumer Finance [Member] | Total Classified [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Net	$ 2,099	$ 1,853

XML

Loans - Schedule of Amortized Cost Basis of Loans by Credit Quality Indicator and Class of Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Financing Receivable Recorded Investment [Line Items]
Total	$ 5,388,331	$ 5,296,168
Residential [Member] | Real Estate [Member]
Financing Receivable Recorded Investment [Line Items]
Current year	87,717	219,471
Year 1	248,371	374,409
Year 2	357,004	113,979
Year 3	105,774	66,550
Year 4	60,967	73,948
Prior	351,102	306,366
Revolving Loans	2,394	2,871
Total	1,213,329	1,157,594
Commercial [Member] | Real Estate [Member]
Financing Receivable Recorded Investment [Line Items]
Current year	120,020	514,799
Year 1	511,697	499,494
Year 2	513,890	398,570
Year 3	365,254	247,314
Year 4	250,447	287,767
Prior	722,039	489,440
Revolving Loans	12,132	10,279
Total	2,495,479	2,447,663
Construction [Member] | Real Estate [Member]
Financing Receivable Recorded Investment [Line Items]
Current year	196,348	198,221
Year 1	86,533	113,106
Year 2	53,706	55,707
Year 3		16,035
Year 4	727	1,711
Prior		145
Revolving Loans	20,853
Total	358,167	384,925
Commercial [Member] | Other Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Current year	69,946	293,780
Year 1	240,629	146,433
Year 2	137,763	88,785
Year 3	78,339	47,981
Year 4	42,252	25,921
Prior	40,425	21,832
Revolving Loans	292,371	260,237
Total	901,725	884,969
Home Equity and Improvement [Member] | Other Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Current year	3,622	24,722
Year 1	23,965	6,870
Year 2	6,444	4,895
Year 3	4,295	2,927
Year 4	2,561	5,561
Prior	35,798	32,007
Revolving Loans	181,356	183,966
Total	258,041	260,948
Consumer Finance [Member] | Other Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Current year	21,501	50,398
Year 1	44,777	26,573
Year 2	24,237	23,619
Year 3	20,676	9,772
Year 4	8,002	4,380
Prior	5,614	2,900
Revolving Loans	8,939	10,090
Total	133,746	127,732
PCD [Member] | Other Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Year 2		237
Year 3	216	1,781
Year 4	1,759	5,102
Prior	19,691	19,087
Revolving Loans	6,178	6,130
Total	27,844	32,337
Pass [Member] | Residential [Member] | Real Estate [Member]
Financing Receivable Recorded Investment [Line Items]
Current year	87,717	219,006
Year 1	247,594	373,439
Year 2	355,860	112,781
Year 3	104,958	65,544
Year 4	59,789	71,794
Prior	344,704	301,735
Revolving Loans	1,481	1,913
Total	1,202,103	1,146,212
Pass [Member] | Commercial [Member] | Real Estate [Member]
Financing Receivable Recorded Investment [Line Items]
Current year	117,640	514,333
Year 1	511,210	493,575
Year 2	513,331	388,117
Year 3	358,355	230,734
Year 4	228,407	237,712
Prior	636,090	451,113
Revolving Loans	11,233	9,262
Total	2,376,266	2,324,846
Pass [Member] | Commercial [Member] | Other Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Current year	67,089
Year 1	240,506
Year 2	125,299
Year 3	74,398
Year 4	41,778
Prior	34,471
Revolving Loans	285,842
Pass [Member] | Construction [Member] | Real Estate [Member]
Financing Receivable Recorded Investment [Line Items]
Current year	196,348	198,221
Year 1	86,533	100,606
Year 2	53,706	55,707
Year 3		10,039
Year 4	727	685
Prior		145
Revolving Loans	20,853
Total	358,167	365,403
Pass [Member] | Commercial [Member] | Other Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Current year		293,644
Year 1		132,703
Year 2		84,668
Year 3		47,421
Year 4		24,269
Prior		17,038
Revolving Loans		256,659
Total	869,383	856,402
Pass [Member] | Home Equity and Improvement [Member] | Other Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Current year	3,622	24,707
Year 1	23,965	6,870
Year 2	6,444	4,867
Year 3	4,267	2,879
Year 4	2,524	5,534
Prior	35,008	31,317
Revolving Loans	180,053	182,740
Total	255,883	258,914
Pass [Member] | Consumer Finance [Member] | Other Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Current year	21,501	50,202
Year 1	44,590	25,866
Year 2	23,257	23,000
Year 3	19,959	9,643
Year 4	7,877	4,313
Prior	5,528	2,769
Revolving Loans	8,935	10,086
Total	131,647	125,879
Pass [Member] | PCD [Member] | Other Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Year 2		170
Year 3	163	1,753
Year 4	1,733	1,860
Prior	13,739	12,496
Revolving Loans	3,475	3,268
Total	19,110	19,547
Special Mention [Member]
Financing Receivable Recorded Investment [Line Items]
Total	115,501	129,430
Special Mention [Member] | Residential [Member] | Real Estate [Member]
Financing Receivable Recorded Investment [Line Items]
Year 1		190
Year 2	187
Year 3	37
Year 4		59
Prior	158	109
Revolving Loans	913	958
Total	1,295	1,316
Special Mention [Member] | Commercial [Member] | Real Estate [Member]
Financing Receivable Recorded Investment [Line Items]
Current year	2,380	294
Year 1	292	5,349
Year 2		5,533
Year 3	2,111	11,055
Year 4	17,094	49,993
Prior	71,000	20,662
Revolving Loans	673	790
Total	93,550	93,676
Special Mention [Member] | Commercial [Member] | Other Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Current year	2,857
Year 2	2,117
Year 3	3,919
Year 4	225
Prior	5,738
Revolving Loans	5,702
Special Mention [Member] | Construction [Member] | Real Estate [Member]
Financing Receivable Recorded Investment [Line Items]
Year 1		12,500
Year 3		5,996
Year 4		1,026
Total		19,522
Special Mention [Member] | Commercial [Member] | Other Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Year 1		2,180
Year 2		4,094
Year 3		272
Year 4		1,264
Prior		4,663
Revolving Loans		2,342
Total	20,558	14,815
Special Mention [Member] | PCD [Member] | Other Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Year 3		0
Year 4		0
Prior	98	101
Revolving Loans		0
Total	98	101
Substandard [Member]
Financing Receivable Recorded Investment [Line Items]
Total	60,271	69,535
Substandard [Member] | Residential [Member] | Real Estate [Member]
Financing Receivable Recorded Investment [Line Items]
Current year		465
Year 1	777	780
Year 2	957	1,198
Year 3	779	1,006
Year 4	1,178	2,095
Prior	6,240	4,522
Total	9,931	10,066
Substandard [Member] | Commercial [Member] | Real Estate [Member]
Financing Receivable Recorded Investment [Line Items]
Current year		172
Year 1	195	570
Year 2	559	4,920
Year 3	4,788	5,525
Year 4	4,946	62
Prior	14,949	17,665
Revolving Loans	226	227
Total	25,663	29,141
Substandard [Member] | Commercial [Member] | Other Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Year 1	123
Year 2	10,347
Year 3	22
Year 4	249
Prior	216
Revolving Loans	827
Substandard [Member] | Commercial [Member] | Other Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Current year		136
Year 1		11,550
Year 2		23
Year 3		288
Year 4		388
Prior		131
Revolving Loans		1,236
Total	11,784	13,752
Substandard [Member] | Home Equity and Improvement [Member] | Other Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Current year		15
Year 2		28
Year 3	28	48
Year 4	37	27
Prior	790	690
Revolving Loans	1,303	1,226
Total	2,158	2,034
Substandard [Member] | Consumer Finance [Member] | Other Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Current year		196
Year 1	187	707
Year 2	980	619
Year 3	717	129
Year 4	125	67
Prior	86	131
Revolving Loans	4	4
Total	2,099	1,853
Substandard [Member] | PCD [Member] | Other Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Year 2		67
Year 3	53	28
Year 4	26	3,242
Prior	5,854	6,490
Revolving Loans	2,703	2,862
Total	$ 8,636	$ 12,689

XML

Loans - Summary of Credit Loss Estimation (Details)	3 Months Ended
	Mar. 31, 2022
Residential Portfolio Segment [Member] | Real Estate [Member] | 1-4 Family Nonowner Occupied [Member]
Financing Receivable Recorded Investment [Line Items]
Portfolio Segments	Residential real estate
Loan Pool	1-4 Family nonowner occupied
Methodology	DCF
Loss Drivers	National unemployment
Residential Portfolio Segment [Member] | Real Estate [Member] | 1-4 Family Owner Occupied [Member]
Financing Receivable Recorded Investment [Line Items]
Loan Pool	1-4 Family owner occupied
Methodology	DCF
Loss Drivers	National unemployment
Commercial Real Estate [Member] | Real Estate [Member] | Commercial Real Estate Nonowner Occupied [Member]
Financing Receivable Recorded Investment [Line Items]
Portfolio Segments	Commercial real estate
Loan Pool	Commercial real estate nonowner occupied
Methodology	DCF
Loss Drivers	National unemployment
Commercial Real Estate [Member] | Real Estate [Member] | Commercial Real Estate Owner Occupied [Member]
Financing Receivable Recorded Investment [Line Items]
Portfolio Segments	Commercial real estate
Loan Pool	Commercial real estate owner occupied
Methodology	DCF
Loss Drivers	National unemployment
Commercial Real Estate [Member] | Real Estate [Member] | Multi Family [Member]
Financing Receivable Recorded Investment [Line Items]
Portfolio Segments	Commercial real estate
Loan Pool	Multi Family
Methodology	DCF
Loss Drivers	National unemployment
Commercial Real Estate [Member] | Real Estate [Member] | Agriculture Land [Member]
Financing Receivable Recorded Investment [Line Items]
Portfolio Segments	Commercial real estate
Loan Pool	Agriculture Land
Methodology	DCF
Loss Drivers	National unemployment
Commercial Real Estate [Member] | Real Estate [Member] | Commercial Loans Other [Member]
Financing Receivable Recorded Investment [Line Items]
Portfolio Segments	Commercial
Loan Pool	Other commercial real estate
Methodology	DCF
Loss Drivers	National unemployment
Construction Portfolio Segment [Member] | Real Estate [Member] | Construction Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Portfolio Segments	Construction secured by real estate
Loan Pool	Construction Other
Methodology	PD/LGD
Loss Drivers	Call report loss history
Commercial Loan Portfolio Segment [Member] | Other Loans [Member] | Commercial Loans Other [Member]
Financing Receivable Recorded Investment [Line Items]
Portfolio Segments	Commercial
Loan Pool	Other commercial
Methodology	PD/LGD
Loss Drivers	Call report loss history
Commercial Loan Portfolio Segment [Member] | Other Loans [Member] | Commercial Working Capital [Member]
Financing Receivable Recorded Investment [Line Items]
Portfolio Segments	Commercial
Loan Pool	Commercial working capital
Methodology	PD/LGD
Loss Drivers	Call report loss history
Commercial Loan Portfolio Segment [Member] | Other Loans [Member] | Agriculture Production [Member]
Financing Receivable Recorded Investment [Line Items]
Portfolio Segments	Commercial
Loan Pool	Agriculture production
Methodology	PD/LGD
Loss Drivers	Call report loss history
Home Equity and Improvement Portfolio Segment [Member] | Other Loans [Member] | Home Equity and Improvement [Member]
Financing Receivable Recorded Investment [Line Items]
Portfolio Segments	Home equity and improvement
Loan Pool	Home equity and improvement
Methodology	PD/LGD
Loss Drivers	Call report loss history
Consumer Finance [Member] | Other Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loan Pool	Consumer indirect
Methodology	DCF
Loss Drivers	National unemployment
Consumer Finance [Member] | Other Loans [Member] | Consumer Finance [Member]
Financing Receivable Recorded Investment [Line Items]
Portfolio Segments	Consumer finance
Loan Pool	Consumer direct
Methodology	Remaining life
Loss Drivers	Call report loss history

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Loans - Schedule of Outstanding Balance and Related Allowance on Loans (Details) - Loan Purchase [Member] - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Loan Balance	$ 27,844	$ 32,337
ACL Balance	1,586	2,040
Real Estate [Member]
Loan Balance	15,666	19,274
ACL Balance	227	348
Real Estate [Member] | Residential [Member]
Loan Balance	12,520	13,396
ACL Balance	176	197
Real Estate [Member] | Commercial Real Estate [Member]
Loan Balance	3,146	5,878
ACL Balance	51	151
Other Loans [Member]
Loan Balance	12,178	13,063
ACL Balance	1,359	1,692
Other Loans [Member] | Commercial [Member]
Loan Balance	8,595	9,167
ACL Balance	1,211	1,531
Other Loans [Member] | Home Equity and Improvement [Member]
Loan Balance	3,135	3,405
ACL Balance	139	154
Other Loans [Member] | Consumer Finance [Member]
Loan Balance	448	491
ACL Balance	$ 9	$ 7

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Mortgage Banking - Net revenues (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Mortgage Banking [Abstract]
Mortgage banking gain, net	$ 2,543	$ 5,640
Mortgage loans servicing revenue (expense):
Mortgage loans servicing revenue	1,879	1,917
Amortization of mortgage servicing rights	(1,403)	(2,344)
Mortgage servicing rights valuation adjustments	1,233	5,320
Mortgage loans servicing revenue (expense), Total	1,709	4,893
Net revenue from sale and servicing of mortgage loans	$ 4,252	$ 10,533

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Mortgage Banking - Additional information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Mortgage Banking [Abstract]
Residential Mortgage Loans, Unpaid Balance	$ 2,940,000	$ 2,940,000
Expenses (credit) relating to secondary market buy-back activity	$ 0

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Mortgage Banking - Capitalized Mortgage and Valuation Allowance (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Mortgage servicing assets:
Balance at beginning of period	$ 22,244	$ 21,666
Loans sold, servicing retained	1,348	2,374
Amortization	(1,403)	(2,344)
Carrying value before valuation allowance at end of period	22,189	21,696
Valuation allowance:
Balance at beginning of period	(2,707)	(8,513)
Impairment recovery (charges)	1,233	5,320
Balance at end of period	(1,474)	(3,193)
Net carrying value of MSRs at end of period	20,715	18,503
Fair value of MSRs at end of period	$ 25,996	$ 18,695

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Leases - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Lessee Lease Description [Line Items]
Option extensions	true
Operating lease, option to extend	five and ten year
Operating lease, weighted average remaining lease term	13 years 8 months 19 days		14 years 2 months 15 days
Operating lease, weighted average discount rate	2.55%		2.57%
Operating Lease, Cost	$ 542,000	$ 664,000
Operating Lease, Right-of-Use Asset	$ 15,600		$ 15,400
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other assets		Other assets
Operating Lease, Liability	$ 16,347		$ 16,100
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Other liabilities		Other liabilities
Minimum [Member]
Lessee Lease Description [Line Items]
Lessee, Operating Lease, Renewal Term	5 years
Maximum [Member]
Lessee Lease Description [Line Items]
Lessee, Operating Lease, Renewal Term	10 years

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Leases - Schedule of Undiscounted Cash Flows Included in Lease Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Leases [Abstract]
Remainder of 2022	$ 2,526
2023	2,023
2024	1,632
2025	1,408
2026	1,173
Thereafter	11,772
Total undiscounted minimum lease payment	20,534
Present value adjustment	(4,187)
Operating Lease, Liability	$ 16,347	$ 16,100

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Deposits - Summary of Deposit Balances (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Deposits [Abstract]
Non-interest-bearing checking accounts	$ 1,733,157	$ 1,724,772
Interest-bearing checking and money market accounts	3,029,260	2,952,705
Savings deposits	830,143	804,451
Retail certificates of deposit less than $250,000	586,967	636,477
Retail certificates of deposit greater than $250,000	137,708	163,646
Total	$ 6,317,235	$ 6,282,051

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Borrowings - Schedule of Bank Line of Credit Advance, Junior Subordinated Debentures and Subordinated Debentures (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Junior subordinated debentures owed to unconsolidated subsidiary trusts	$ 36,083	$ 36,083
Subordinated debentures	48,925	48,893
First Defiance Statutory Trusts I [Member]
Debt Instrument [Line Items]
Junior subordinated debentures owed to unconsolidated subsidiary trusts	20,619	20,619
First Defiance Statutory Trusts II [Member]
Debt Instrument [Line Items]
Junior subordinated debentures owed to unconsolidated subsidiary trusts	$ 15,464	$ 15,464

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Borrowings - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2022	Sep. 30, 2020	Dec. 31, 2021
Debt Instrument [Line Items]
Advances from the Federal Home Loan Bank	$ 150,000
Period for Interest Deferral on Trust Preferred Securities	5 years
Premier Statutory Trust II [Member]
Debt Instrument [Line Items]
Proceeds from Issuance of Subordinated Long-term Debt	$ 15,500
Proceeds from Issuance of Trust Preferred Securities	$ 15,000
Coupon Rate on Preferred Securities, Period End	2.33%		1.70%
Preferred Securities Variable Interest Rate	LIBOR rate plus 1.5%
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Description	The Trust Preferred Securities and Subordinated Debentures mature on September 15, 2037, but can be redeemed at the Company’s option at any time now.
Premier Statutory Trust I [Member]
Debt Instrument [Line Items]
Proceeds from Issuance of Subordinated Long-term Debt	$ 20,600
Proceeds from Issuance of Trust Preferred Securities	$ 20,000
Coupon Rate on Preferred Securities, Period End	2.21%		1.58%
Preferred Securities Variable Interest Rate	LIBOR rate plus 1.38%
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Description	The Trust Preferred Securities and Subordinated Debentures mature on December 15, 2035, but can be redeemed at the Company’s option at any time now.
Subordinated Debt [Member]
Debt Instrument [Line Items]
Aggregate principal amount		$ 50,000
Subordinated notes, due date		Sep. 30, 2030
Subordinated notes, fixed Interest rate		4.00%
Subordinated notes, fixed interest rate, period		5 years
Basis spread on variable rate		3.885%
Proceeds from Issuance of Subordinated Long-term Debt		$ 48,700
Federal Home Loan Bank Advances [Member]
Debt Instrument [Line Items]
Advances from the Federal Home Loan Bank	$ 150,000		$ 0

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Commitments, Guarantees and Contingent Liabilities - Maximum obligation to extend credit (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Commitments And Contingencies Disclosure [Abstract]
Commitments to make loans	$ 1,154,525	$ 1,175,916
Unused lines of credit	1,007,302	626,348
Standby letters of credit	13,319	10,851
Total	$ 2,175,146	$ 1,813,115

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Commitments, Guarantees and Contingent Liabilities - Additional Information (Details)	3 Months Ended
	Mar. 31, 2022
Commitments And Contingencies Disclosure [Abstract]
Loan Commitments Maturities Range Description	60 days or less

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Income Taxes - Schedule of Components of Income Tax Expense (Benefit) - (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Current:
Federal	$ 5,814	$ 6,362
State and local	163	163
Deferred	193	3,427
Income Tax Expense (Benefit)	$ 6,170	$ 9,952

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Income Taxes - Schedule of Effective Income Tax Rate Reconciliation - (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Tax expense (benefit) at statutory rate (21%)	$ 6,830	$ 10,699
Increases (decreases) in taxes from:
State income tax - net of federal tax benefit	128	128
Tax exempt interest income, net of TEFRA	(186)	(200)
Bank owned life insurance	(209)	(245)
Captive insurance	(105)	(90)
Other	(288)	(340)
Income Tax Expense (Benefit)	$ 6,170	$ 9,952

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Income Taxes - Schedule of Effective Income Tax Rate Reconciliation - (Parenthetical) - (Details)	3 Months Ended
	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%

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Derivative Financial Instruments - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Derivatives Fair Value [Line Items]
Interest Rate Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net	$ 27,300		$ 65,400
Notional Amount of Interest Rate Derivative Instruments Not Designated as Hedging Instruments	337,000		305,000
Interest Rate Swaps [Member]
Derivatives Fair Value [Line Items]
Notional Amount of Interest Rate Derivative Instruments Not Designated as Hedging Instruments	82,600		69,400
Noninterest income expense	1,000	$ 198,000
Interest Rate Swaps [Member] | Cash Flow Hedge [Member]
Derivatives Fair Value [Line Items]
Notional amount of interest rate derivative instruments designated as cash flow hedge	250,000
Other Assets [Member] | Interest Rate Swaps [Member]
Derivatives Fair Value [Line Items]
Fair value of derivative assets	2,300		1,300
Other Assets [Member] | Interest Rate Swaps [Member] | Cash Flow Hedge [Member]
Derivatives Fair Value [Line Items]
Aggregate fair value of interest rate cash flow hedge	16,200		854,000
Other Liabilities [Member] | Interest Rate Swaps [Member]
Derivatives Fair Value [Line Items]
Fair value of derivative liabilities	$ 2,300		$ 1,300

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Derivative Financial Instruments - Carrying values (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Derivatives not designated as hedging instruments
Mortgage Banking Derivatives Assets, Carrying Value	$ 9,923	$ 2,336

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Derivative Financial Instruments - Amount of gains and losses recognized (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Derivatives not designated as hedging instruments
Mortgage Banking Derivatives – Gain (Loss)	$ 7,587	$ 4,124

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Derivative Financial Instruments - Summary of Interest Rate Swap Designated as Cash Flow Hedge (Details) - Interest Rate Swaps [Member] - Designated as Cash Flow Hedge [Member] - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Derivative [Line Items]
Notional amount	$ 250,000	$ 250,000
Weighted average fixed receive rates	1.437%	1.437%
Weighted average remaining maturity (in years)	9 years	9 years 3 months 18 days
Fair value	$ (16,180)	$ 854
1-Month LIBOR
Derivative [Line Items]
Weighted average variable 1-month LIBOR pay rates	0.438%	0.089%

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Other Comprehensive (Loss) Income - Reclassification adjustments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Securities available for sale and transferred securities: Before Tax Amount
Change in net unrealized gain/loss during the period	$ (74,193)	$ (19,112)
Reclassification adjustment for net gains (losses) included in net income	0	(516)
Total other comprehensive gain (loss)	(91,227)	(19,628)
Cash flow hedge derivatives
Change in net unrealized gain/loss during the period, Before tax	(16,241)
Reclassification adjustment for net gains included in net income, Before tax	(793)
Change in net unrealized gain/loss during the period, Tax (expense) benefit	3,411
Reclassification adjustment for net gains included in net income, Tax (expense) benefit	167
Total other comprehensive gain (loss)	19,158	4,122
Change in net unrealized gain/loss during the period, Net of tax	(12,830)
Reclassification adjustment for net gains included in net income, Net of tax	(626)
Total other comprehensive income (loss)	(72,069)	(15,506)
Securities available for sale and transferred securities: Tax (Expense) Benefit
Change in net unrealized gain/loss during the period	15,580	4,014
Reclassification adjustment for net gains (losses) included in net income		108
Total other comprehensive gain (loss)	19,158	4,122
Securities available for sale and transferred securities:
Change in net unrealized gain/loss during the period	(58,613)	(15,098)
Reclassification adjustment for net gains (losses) included in net income		(408)
Total other comprehensive income (loss)	$ (72,069)	$ (15,506)

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Other Comprehensive (Loss) Income - Activity in AOCI, net of tax (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Other Comprehensive Income Loss Net Of Tax Period Increase Decrease [Abstract]
Securities Available For Sale, Beginning balance	$ (4,023)	$ 15,083
Securities Available For Sale, Other comprehensive income/(loss) before reclassifications	(58,613)	(15,098)
Securities Available For Sale, Amounts reclassified from accumulated other comprehensive income	0	(408)
Securities Available For Sale, Net other comprehensive income/(loss) during period	(58,613)	(15,506)
Securities Available For Sale, Ending balance	(62,636)	(423)
Post-retirement Benefit, Beginning balance	(79)	(79)
Post-retirement Benefit, Ending balance	(79)	(79)
Cash Flow hedge Derivatives, Beginning balance	674
Cash Flow Hedge Derivatives, Other comprehensive income/(loss) before reclassifications	(12,830)
Cash Flow Hedge Derivatives, Amounts reclassified from accumulated other comprehensive income	(626)
Net of tax amount	(13,456)
Cash Flow hedge Derivatives, Ending balance	(12,782)
Accumulated Other Comprehensive Income (Loss), Beginning balance	(3,428)	15,004
Accumulated Other Comprehensive Income (Loss), Other comprehensive income/(loss) before reclassifications	(71,443)	(15,098)
Accumulated Other Comprehensive Income (Loss), Amounts reclassified from accumulated other comprehensive income	(626)	(408)
Accumulated Other Comprehensive Income (loss), Net other comprehensive income/(loss) during period	(72,069)	(15,506)
Accumulated Other Comprehensive Income (Loss), Ending balance	$ (75,497)	$ (502)

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Business Combinations - Additional Information (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Goodwill	$ 317,948	$ 317,948

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Business Combinations - Schedule of Business Acquisitions, by Acquisition (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed:
Goodwill	$ 317,948	$ 317,948