NasdaqGM:PFBI

Stock Analysis Report

Premier Financial Bancorp

Executive Summary

Premier Financial Bancorp, Inc., a multi-bank holding company, provides community banking services to individuals and small-to-medium sized businesses.

Rewards

Trading at 23.4% below its fair value

Earnings grew by 30.8% over the past year

Risk Analysis

Unstable dividend track record

Shareholders have been diluted in the past year



Snowflake Analysis

Undervalued with solid track record.


Similar Companies

Share Price & News

How has Premier Financial Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PFBI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.1%

PFBI

-0.3%

US Banks

1.7%

US Market


1 Year Return

17.6%

PFBI

15.3%

US Banks

23.2%

US Market

Return vs Industry: PFBI matched the US Banks industry which returned 17% over the past year.

Return vs Market: PFBI underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

PFBIIndustryMarket
7 Day3.1%-0.3%1.7%
30 Day-4.6%-2.0%4.2%
90 Day-0.3%9.1%11.9%
1 Year22.0%17.6%18.6%15.3%25.8%23.2%
3 Year30.1%17.7%34.3%24.8%52.8%42.9%
5 Year95.4%64.5%85.7%64.8%75.2%55.8%

Price Volatility Vs. Market

How volatile is Premier Financial Bancorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Premier Financial Bancorp undervalued compared to its fair value and its price relative to the market?

20.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PFBI ($17.26) is trading below our estimate of fair value ($22.53)

Significantly Below Fair Value: PFBI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PFBI is good value based on its PE Ratio (10.5x) compared to the Banks industry average (12.8x).

PE vs Market: PFBI is good value based on its PE Ratio (10.5x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PFBI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PFBI is good value based on its PB Ratio (1.1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Premier Financial Bancorp forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

1.8%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Premier Financial Bancorp has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Premier Financial Bancorp performed over the past 5 years?

14.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PFBI has high quality earnings.

Growing Profit Margin: PFBI's current net profit margins (32.3%) are higher than last year (28.4%).


Past Earnings Growth Analysis

Earnings Trend: PFBI's earnings have grown by 14.2% per year over the past 5 years.

Accelerating Growth: PFBI's earnings growth over the past year (30.8%) exceeds its 5-year average (14.2% per year).

Earnings vs Industry: PFBI earnings growth over the past year (30.8%) exceeded the Banks industry 27.1%.


Return on Equity

High ROE: PFBI's Return on Equity (10.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Premier Financial Bancorp's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: PFBI has a low level of unsold assets or inventory.

Debt Coverage by Assets: PFBI's debt is covered by short term assets (assets are 5.5x debt).


Financial Institutions Analysis

Asset Level: PFBI's level of assets compared to its equity is low.

Allowance for Bad Loans: PFBI has a low allowance for bad loans.

Low Risk Liabilities: PFBI's liabilities are made up of primarily low risk sources of funding.

Loan Level: PFBI has an acceptable proportion of non-loan assets held.

Low Risk Deposits: PFBI's loans are broadly funded by customer deposits.

Level of Bad Loans: PFBI has an appropriate level of bad loans (1.64%)


Next Steps

Dividend

What is Premier Financial Bancorp's current dividend yield, its reliability and sustainability?

3.40%

Current Dividend Yield


Dividend Yield vs Market

company3.4%marketbottom25%1.4%markettop25%3.6%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: PFBI's dividend (3.48%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: PFBI's dividend (3.48%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: PFBI's dividend payments have been volatile in the past 10 years.

Growing Dividend: PFBI's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.6%), PFBI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Premier Financial Bancorp's salary, the management and board of directors tenure and is there insider trading?

14.2yrs

Average management tenure


CEO

Bob Walker (72yo)

18.3yrs

Tenure

US$476,210

Compensation

Mr. Robert W. Walker has been the President and Chief Executive Officer of Premier Financial Bancorp, Inc. since October 2001. Mr. Walker serves as a Director of Premier Financial Bancorp Inc. Mr. Walker s ...


CEO Compensation Analysis

Compensation vs Market: Bob's total compensation ($USD476.21K) is below average for companies of similar size in the US market ($USD1.08M).

Compensation vs Earnings: Bob's compensation has been consistent with company performance over the past year.


Management Age and Tenure

14.2yrs

Average Tenure

62yo

Average Age

Experienced Management: PFBI's management team is seasoned and experienced (14.2 years average tenure).


Board Age and Tenure

18.8yrs

Average Tenure

72yo

Average Age

Experienced Board: PFBI's board of directors are seasoned and experienced ( 18.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$55,32710 Sep 19
Neal Scaggs
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,628
Max PriceUS$15.25
BuyUS$152,50005 Sep 19
Neal Scaggs
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$15.25
SellUS$116,29129 Aug 19
Thomas Wright
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,640
Max PriceUS$15.23
BuyUS$45,00006 Aug 19
Philip Cline
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$15.00
BuyUS$38,90030 Jul 19
Harry Hatfield
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,500
Max PriceUS$15.56
SellUS$98,50722 May 19
Thomas Wright
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares19,482.25
Max PriceUS$16.39
BuyUS$30,95015 Mar 19
Philip Cline
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$15.55
BuyUS$39,64913 Mar 19
Harry Hatfield
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,502
Max PriceUS$15.85
BuyUS$48,00012 Mar 19
Lloyd Jackson
EntityIndividual
Role
Member of the Board of Directors
Assistant Secretary & Director
Shares3,000
Max PriceUS$16.00

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.3%.


Management Team

  • Toney Adkins (69yo)

    Secretary & Director

    • Tenure: 28.5yrs
    • Compensation: US$12.00k
  • Bob Walker (72yo)

    President

    • Tenure: 18.3yrs
    • Compensation: US$476.21k
  • Brien Chase (54yo)

    Senior VP & CFO

    • Tenure: 17.8yrs
    • Compensation: US$224.76k
  • Scot Kelley (62yo)

    Vice President of Credit Administration

    • Tenure: 11.8yrs
    • Compensation: US$152.13k
  • Katrina Whitt (44yo)

    Vice President of Human Resources

    • Tenure: 16.5yrs
  • Lloyd Jackson (66yo)

    Assistant Secretary & Director

    • Tenure: 7.6yrs
    • Compensation: US$12.00k
  • Mike Mineer (52yo)

    Senior Vice President

    • Tenure: 6.8yrs
    • Compensation: US$251.00k
  • Jonathan Bias (62yo)

    Senior Vice President

    • Tenure: 4.3yrs
    • Compensation: US$268.70k

Board Members

  • Marshall Reynolds (82yo)

    Chairman of the Board

    • Tenure: 24yrs
    • Compensation: US$12.00k
  • Toney Adkins (69yo)

    Secretary & Director

    • Tenure: 28.5yrs
    • Compensation: US$12.00k
  • Philip Cline (86yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$12.00k
  • Neal Scaggs (83yo)

    Independent Director

    • Tenure: 21.3yrs
    • Compensation: US$12.00k
  • Keith Molihan (77yo)

    Independent Director

    • Tenure: 20.3yrs
    • Compensation: US$12.00k
  • Bob Walker (72yo)

    President

    • Tenure: 18.3yrs
    • Compensation: US$476.21k
  • Tom Wright (66yo)

    Independent Director

    • Tenure: 18.8yrs
    • Compensation: US$12.00k
  • Harry Hatfield (71yo)

    Independent Director

    • Tenure: 7.6yrs
    • Compensation: US$12.00k
  • Lloyd Jackson (66yo)

    Assistant Secretary & Director

    • Tenure: 7.6yrs
    • Compensation: US$12.00k

Company Information

Premier Financial Bancorp, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Premier Financial Bancorp, Inc.
  • Ticker: PFBI
  • Exchange: NasdaqGM
  • Founded: 1991
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$258.860m
  • Shares outstanding: 14.65m
  • Website: https://www.premierbankinc.com

Number of Employees


Location

  • Premier Financial Bancorp, Inc.
  • 2883 Fifth Avenue
  • Huntington
  • West Virginia
  • 25702
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PFBINasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDMay 1996

Biography

Premier Financial Bancorp, Inc., a multi-bank holding company, provides community banking services to individuals and small-to-medium sized businesses. The company accepts various deposit products, including checking, NOW, savings, money market, club, individual retirement, and overdraft protection accounts, as well as certificates of deposit. It also provides loans secured by 1-4 family residential real estate, multifamily residential real estate, owner occupied non-farm non-residential real estate, and non-farm non-residential real estate; commercial and industrial loans not secured by real estate; consumer loans; construction, land, and land development loans; and farmland and agricultural loans, and loans to tax-exempt entities. In addition, the company offers depository and funds transfer services; collections; safe deposit boxes; cash management services; bill payment, remote deposit, check imaging, and automated teller machine services; and Internet, mobile, and telephone banking services. As of March 5, 2019, it operated 11 banking offices in Kentucky; 3 banking offices in Ohio; 26 banking offices in West Virginia; 4 banking offices in Washington, DC; 1 banking office in Maryland; and 3 banking offices in Virginia. Premier Financial Bancorp, Inc. was incorporated in 1991 and is headquartered in Huntington, West Virginia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/17 01:38
End of Day Share Price2020/01/16 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.