Regulatory Matters

12 Months Ended

Dec. 31, 2023

Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]

Regulatory Matters

16.Regulatory Matters

Premier and the Bank are subject to minimum capital adequacy guidelines. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators, which could have a material impact on Premier’s financial statements. Under capital adequacy guidelines, Premier and the Bank must maintain capital amounts in excess of minimum ratios based on quantitative measures of their assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices.

The rules include a minimum common equity tier 1 capital to risk-weighted assets ratio (“CET1”) of 4.5% and a capital conservation buffer of 2.5% of risk-weighted assets, which effectively results in a minimum CET1 ratio of 7.0%. Basel III raises the minimum ratio of tier 1 capital to risk-weighted assets from 4.0% to 6.0% (which, with the capital conservation buffer, effectively results in a minimum tier 1 capital ratio of 8.5%), which effectively results in a minimum total capital to risk-weighted assets ratio of 10.5%, and requires a minimum leverage ratio of 4.0%. Basel III also makes changes to risk weights for certain assets and off-balance sheet exposures.

The federal banking agencies have also established a system of “prompt corrective action” to resolve certain problems of undercapitalized banks. The regulatory agencies can initiate certain mandatory actions if the Bank fails to meet the minimum capital requirements, which could have a material effect on Premier’s financial statements.

The following schedule presents Premier consolidated and the Bank’s regulatory capital ratios as of December 31, 2023 and 2022 (dollars in thousands):

	December 31, 2023
	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	$	826,639		11.70	%	$	318,003		4.5	%	N/A		N/A
Premier Bank	$	871,342		12.38	%	$	316,676		4.5	%	$	457,421		6.5	%
Tier 1 Capital
Consolidated	$	861,639		10.26	%	$	335,772		4.0	%	N/A		N/A
Premier Bank	$	871,342		10.42	%	$	334,641		4.0	%	$	418,301		5.0	%
Tier 1 Capital (to Risk Weighted Assets)
Consolidated	$	861,639		12.19	%	$	424,005		6.0	%	N/A		N/A
Premier Bank	$	871,342		12.38	%	$	422,235		6.0	%	$	562,980		8.0	%
Total Capital (to Risk Weighted Assets)
Consolidated	$	991,873		14.04	%	$	565,339		8.0	%	N/A		N/A
Premier Bank	$	951,576		13.52	%	$	562,980		8.0	%	$	703,725		10.0	%

(1) Excludes capital conservation buffer of 2.50% as of December 31, 2023.

	December 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	$	728,883		9.91	%	$	331,019		4.5	%	N/A		N/A
Premier Bank	$	775,907		10.58	%	$	330,008		4.5	%	$	476,678		6.5	%
Tier 1 Capital
Consolidated	$	763,883		9.37	%	$	326,094		4.0	%	N/A		N/A
Premier Bank	$	775,907		9.55	%	$	324,949		4.0	%	$	406,187		5.0	%
Tier 1 Capital (to Risk Weighted Assets)
Consolidated	$	763,883		10.38	%	$	441,359		6.0	%	N/A		N/A
Premier Bank	$	775,907		10.58	%	$	440,011		6.0	%	$	586,681		8.0	%
Total Capital (to Risk Weighted Assets)
Consolidated	$	892,663		12.14	%	$	588,478		8.0	%	N/A		N/A
Premier Bank	$	854,687		11.65	%	$	586,681		8.0	%	$	733,352		10.0	%

(1) Excludes capital conservation buffer of 2.50% as of December 31, 2022.

Dividend Restrictions - Dividends paid by the Bank to Premier are subject to various regulatory restrictions. The Bank paid $26.5 million in dividends to Premier and received $29.8 million cash contribution from Premier in 2023 and paid net dividends of $58.0 million in 2022. The Bank may not pay dividends to Premier in excess of its net profits (as defined by statute) for the last two fiscal years, plus any year to date net profits without the approval of the ODFI. As of December 31, 2023, the Bank could dividend up to an additional $186.4 million to Premier. First Insurance paid $43.0 million in dividends to Premier in 2023 and $2.0 million in dividends in 2022. PFC Risk Management did not pay dividends to Premier in 2023 and paid $1.6 million in dividends in 2022. PFC Capital did not pay dividends or receive a cash contribution in 2023 and received $3.0 million in a cash contribution from Premier in 2022.