- Net income of $11.7 and
$21.8 million for the three and six
months ended June 30, 2022,
respectively
- Earnings per common share of $1.55 and $2.89 for
the three and six months ended June 30,
2022, respectively
- Quarterly cash dividend of $0.25 per share declared, a 13.6% increase from
the prior quarter and 19.0% increase from the prior year second
quarter
MANITOWOC, Wis., July 19,
2022 /PRNewswire/ -- Bank First Corporation (NASDAQ:
BFC) ("Bank First" or the "Bank"), the holding company for Bank
First, N.A., reported net income of $11.7
million, or $1.55 per share,
for the second quarter of 2022, compared with net income of
$11.5 million, or $1.50 per share, for the prior-year second
quarter. For the six months ended June 30,
2022, Bank First earned $21.8
million, or $2.89 per share,
compared to $23.1 million, or
$2.99 per share for the same period
in 2021.
Operating Results
Net interest income ("NII") during the second quarter of 2022
was $23.5 million, up $1.2 million from the previous quarter and up
$1.7 million from the second quarter
of 2021. Interest income on loans originated through the Small
Business Administration's Paycheck Protection Program ("PPP")
totaled $0.4 million during the
second quarter of 2022, compared to $0.7
million during the previous quarter and $1.9 million during the second quarter of
2021.
During much of the first two quarters of 2022 the Bank engaged
in a strategy to enhance NII, utilizing $300.0 million in short-term borrowings from the
Federal Home Loan Bank and investing these funds in short-term,
liquid, risk-free, interest-earning assets. This strategy increased
NII by $0.2 million and $0.1 million during the second and first quarters
of 2022, respectively.
Purchase accounting entries, resulting from our acquisitions of
other institutions over the last several years, increased NII
during the second quarter of 2022 by $0.4
million, or $0.04 per share
after tax, compared to $0.3 million
and $0.4 million, or $0.03 and $0.04 per
share after tax, for the previous quarter and second quarter of
2021, respectively. For the first six months of 2022 and 2021 the
impact of these purchase accounting entries increased NII by
$0.7 million, or $0.07 per share after tax, and $0.9 million, or $0.09 per share after tax, respectively.
Net interest margin ("NIM") was 3.21% for the second quarter of
2022, compared to 3.06% for the previous quarter and 3.37% for the
second quarter of 2021. Purchase accounting entries added 0.05%,
0.04% and 0.08% to NIM for each of these periods, respectively. The
aforementioned short-term NII enhancement strategy decreased NIM by
0.27% during the current quarter and 0.29% during the previous
quarter.
Bank First recorded a provision for loan losses of $0.5 million during the second quarter of 2022,
compared to $1.2 million during the
previous quarter and $1.0 million
during the second quarter of 2021. Provision expense was
$1.7 million for the first six months
of 2022 compared to $1.9 million for
the same period during 2021. Recoveries of previously charged-off
loans exceeded currently charged-off loans by $0.7 million through the first six months of
2022, compared to recoveries negligibly exceeding charge-offs
through the first six months of 2021.
Noninterest income was $5.6
million for the second quarter of 2022, compared to
$5.2 million during the previous
quarter and $6.6 million for the
second quarter of 2021. The primary catalyst of the decrease in
noninterest income between the year-over-year second quarters was
the industry-wide slowdown in residential mortgage lending which
led to a decline in gains on sales of mortgage loans to the
secondary market of $1.8 million.
Offsetting this decline, the Bank experienced a $1.5 million increase in the value of mortgage
servicing rights during the second quarter of 2022, compared to an
increase of $0.6 million in this
valuation during the second quarter of 2021.
Noninterest expense was $13.2
million in the second quarter of 2022, compared to
$12.7 million during the previous
quarter and $12.3 million during the
second quarter of 2021. The year-over-year increase in second
quarter noninterest expense was principally related to expenses
resulting from Bank First's pending acquisition of Denmark
Bancshares, Inc., totaling $0.6
million in the second quarter of 2022 (negatively impacting
earnings per share after tax by $0.06
during that period) and $1.1 million
through the first six months of 2022 (negatively impacting earnings
per share after tax by $0.12 during
that period). The majority of these expenses were classified as
outside service fees. Occupancy, equipment and office expenses have
increased during the first six months of 2022 as a result of
significant inflationary pressure.
Balance Sheet
Total assets were $2.96 billion at
June 30, 2022, a $23.5 million increase from December 31, 2021, and up $142.1 million from June
30, 2021. Total loans were $2.39
billion at June 30, 2022, up
$152.1 million from December 31, 2021, and up $162.4 million from June
30, 2021. Excluding PPP repayments or forgiveness, loans
grew by 13.3% over the trailing twelve months. Annualized loan
growth during the second quarter of 2022 and first six months of
2022, also excluding PPP activity, amounted to 14.3% and 16.2%,
respectively. Total deposits, nearly all of which remain core
deposits, were $2.60 billion at
June 30, 2022, up $73.0 million from December 31, 2021, and up $142.1 million from June
30, 2021. Noninterest-bearing demand deposits comprised
31.7% of the Bank's total core deposits at June 30, 2022.
Asset Quality
Nonperforming assets at June 30,
2022, totaled $5.3 million,
down from $8.2 million and
$12.6 million at the end of the
fourth and second quarters of 2021, respectively. Nonperforming
assets to total assets ended the second quarter of 2022 at 0.18%,
down from 0.28% and 0.45% at the end of the fourth and second
quarters of 2021, respectively.
Capital Position
Stockholders' equity totaled $314.2
million at June 30, 2022, a
decrease of $8.5 million from the end
of 2021 but an increase of $2.7
million from June 30, 2021.
Interest rate movements during the first half of 2022 significantly
impacted the value of investments in the Bank's available-for-sale
investment portfolio, creating an unrealized loss in other
comprehensive income which reduced stockholders' equity by
$7.4 million during the second
quarter and $15.6 million
year-to-date. Dividends totaling $3.3
million and share repurchases totaling $12.1 million further reduced capital through the
first six months of 2022. Strong earnings served to partially
offset these items, increasing capital by $21.8 million.
Dividend Declaration
Bank First's Board of Directors approved a quarterly cash
dividend of $0.25 per common share,
payable on October 5, 2022, to
shareholders of record as of September 21,
2022. This dividend represents a 13.6% increase over the
previous quarter's dividend, and a 19.0% increase over the dividend
declared one year earlier.
For further information, contact:
Kevin M
LeMahieu, Chief Financial Officer
Phone: (920)
652-3200 / klemahieu@bankfirst.com
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SOURCE Bank First Corporation
