Vote Against Premier Financial Corporation Board!
As we approach the annual meeting of Premier Financial Corporation, which is just around the corner, some stakeholders are hastily questioning the value provided by the company's board in relation to their compensation. After extensive analysis, it appears that a different outcome may be warranted.
Premier Financial Corporation operates as a holding company that owns Premier Bank, under the leadership of CEO Gary M. Small. The net earnings have shown a downward trend since 2021, despite a significant 99.8% increase from the gradual growth observed between 2018 and 2020.
The company has enjoyed a growth in its interest-earning income by an average of 23.99% compounded annually. However, its non-interest income and non-interest expenses have also been on the rise, with annual compounded increases of 18.30% and 12.81%, respectively.
Additionally, Premier Financial Corporation's total assets have been climbing at a compounded annual growth rate of 16.395%, with the most substantial jump — 107.9% — occurring between 2019 and 2020, likely due to the merger with United Community Financial Corp.
At first glance, the company appears to be performing well. Yet, a closer look reveals that during the same period, their total liabilities have also surged by 16.61% compounded annually, paralleling the asset increase with a 104.7% jump between 2019 and 2020, attributed again to the merger.
Examining CEO Gary M. Small's recent transactions raises eyebrows. On March 2nd, he sold 422 shares at market value, followed by an acquisition of 5,185 shares at no cost just nine days later. Furthermore, earlier this month, he continued to offload more shares at market price. These moves cast doubt on the confidence that insiders like Small and Varun Chandhok have in their own corporation, which in turn raises the question: should investors feel any differently?
Despite these concerns, Yahoo Finance reports that the CEO's compensation is currently deemed appropriate. Yet, this is in the context of a board that seems to be prioritizing their own financial gain. To secure optimal growth for the corporation, it may be prudent to consider a change in executive leadership.
In light of these factors, it seems prudent to infer that the company's board may continue to enrich themselves at the expense of the corporation's progress. A call for a change in the board is therefore justified.
References
https://www.premierfincorp.com/news-and-market-data/press-releases/news-details/2020/First-Defiance-Financial-Corp.-and-United-Community-Financial-Corp.-Complete-Merger-Creating-Premier-Midwest-Franchise-2020-2-3/default.aspx
https://finance.yahoo.com/news/shareholders-second-thoughts-pay-rise-113459039.html
https://www.sec.gov/ix?doc=/Archives/edgar/data/946647/000095017024022090/pfc-20231231.htm
https://www.sec.gov/ix?doc=/Archives/edgar/data/0000946647/000156459021049272/pfc-10ka_20201231.htm
https://www.sec.gov/Archives/edgar/data/946647/000110465924033553/xslF345X05/tm248679-1_4seq1.xml
https://www.sec.gov/Archives/edgar/data/946647/000110465924031001/xslF345X05/tm248042-1_4seq1.xml
https://www.sec.gov/Archives/edgar/data/946647/000110465924043053/xslF345X05/tm2410992-1_4seq1.xml
https://www.sec.gov/Archives/edgar/data/946647/000110465924043055/xslF345X05/tm2410992-2_4seq1.xml
Tags: stocks