- Net income of $16.1 million
and $31.5 million for the three and
six months ended June 30, 2024,
respectively
- Earnings per common share of $1.59 and $3.10 for
the three and six months ended June 30,
2024, respectively
- Annualized return on average assets of 1.58% and 1.54% for
the three and six months ended June 30,
2024, respectively
- Quarterly cash dividend of $0.40 per share declared, 14.3% higher than the
prior quarter and a 33.3% increase from the prior-year second
quarter
MANITOWOC, Wis,, July 16,
2024 /PRNewswire/ -- Bank First Corporation (NASDAQ:
BFC) ("Bank First" or the "Bank"), the holding company for Bank
First, N.A., reported net income of $16.1
million, or $1.59 per share,
for the second quarter of 2024, compared with net income of
$14.1 million, or $1.37 per share, for the prior-year second
quarter. For the six months ended June 30,
2024, Bank First earned $31.5
million, or $3.10 per share,
compared to $24.8 million, or
$2.46 per share for the same period
in 2023. After removing the impact of one-time expenses related to
acquisitions as well as gains and losses on sales of securities and
other real estate owned ("OREO"), the Bank reported adjusted net
income (non-GAAP) of $15.7 million,
or $1.56 per share, for the second
quarter of 2024, compared with $14.6
million, or $1.42 per share,
for the prior-year second quarter. For the first six months of 2024
adjusted net income (non-GAAP) totaled $31.1
million, or $3.06 per share,
compared to $29.3 million, or
$2.92 per share for the same period
in 2023.
Operating Results
Net interest income ("NII") during
the second quarter of 2024 was $33.0
million, down $0.3 million
from the previous quarter and down $1.3
million from the second quarter of 2023. The impact of net
accretion and amortization of purchase accounting related to
interest-bearing assets and liabilities from past acquisitions
("purchase accounting") increased NII by $1.2 million, or $0.09 per share after tax, during the second
quarter of 2024, compared to $1.2
million, or $0.09 per share
after tax, during the previous quarter and $2.5 million, or $0.18 per share after tax, during the second
quarter of 2023.
Net interest margin ("NIM") was 3.63% for the second quarter of
2024, compared to 3.62% for the previous quarter and 3.77% for the
second quarter of 2023. NII from purchase accounting increased NIM
by 0.13%, 0.13% and 0.27% for each of these periods, respectively.
While the Bank's average rate paid on interest-bearing liabilities
continued to rise during the second quarter of 2024, the momentum
of these increases has begun to slow while average rates earned on
interest-earning assets continued a steady move higher. The
increase in yields on interest-earnings assets was due to
fixed-rate loans which matured and were renewed at higher rates
during the quarter as well as higher prevailing market rates on
recent new loan growth compared to the loan portfolio as a whole.
The beneficial impact of the Bank's high percentage of
noninterest-bearing deposits also had a positive impact, adding 89
basis points to NIM during the second quarter of 2024 compared to
84 basis points and 65 basis points for the prior quarter and
second quarter of 2023, respectively.
Bank First did not record a provision for credit losses during
the second quarter of 2024, compared to recording a provision of
$0.2 million during the previous
quarter. The Bank also did not record a provision for credit losses
during the second quarter of 2023. Provision expense was
$0.2 million for the first six months
of 2024 compared to $4.2 million for
the same period during 2023. The acquisition of the loan portfolio
of Hometown Bancorp, Ltd. ("Hometown") during the first quarter of
2023 resulted in a day 1 provision for credit losses expense of
$3.6 million. Recoveries of
previously charged-off loans exceeded currently charged-off loans
by $0.8 million through the first six
months of 2024, compared to recoveries exceeding charge-offs by
$0.1 million through the first six
months of 2023. Also, due to a reduction in unfunded loan
commitments and an increase in outstanding loans, the Bank moved
$0.5 million from its liability for
potential credit losses in unfunded commitments to its allowance
for credit losses in its loan portfolio. While this move had no
impact on the Bank's profitability for the quarter, it did increase
the allowance for potential loan credit losses to correspond with
the increase in overall loan portfolio balances.
Noninterest income was $5.9
million for the second quarter of 2024, compared to
$4.4 million and $4.6 million for the prior quarter and second
quarter of 2023, respectively. Service charge income increased by
$0.5 million, or 28.6%, and
$0.3 million, or 19.0%, from the
prior quarter and prior-year second quarter, respectively,
primarily due to a recently negotiated vendor incentive program
related to the Bank's credit and debit card payments processing.
Income provided by the Bank's investment in Ansay & Associates,
LLC totaled $1.4 million during the
second quarter of 2024, up $0.4
million from both the prior quarter and the prior-year
second quarter. Finally, the Bank experienced a $0.3 million positive valuation adjustment to its
mortgage servicing rights asset during the second quarter of 2024
which compared favorably to $0.3
million and $0.5 million in
negative valuation adjustments during the prior quarter and
prior-year second quarter, respectively.
Noninterest expense was $19.1
million in the second quarter of 2024, compared to
$20.3 million during the prior
quarter and $19.9 million during the
second quarter of 2023. Personnel expense remained well-managed,
down $0.9 million from the prior
quarter, as employee retirements in the first quarter of 2024
allowed certain acquired branches to reach expected long-term
staffing levels. Outside service fees were a notable exception to
overall lower noninterest expenses during the second quarter of
2024. Included in outside service fees during the most recent
quarter was $0.2 million paid to an
advisory firm which assisted the Bank in negotiations with a
vendor, resulting in projected savings for the Bank of $1.1 million over the next five years. Also
included in outside service fees during the most recent quarter was
$0.3 million in commissions paid
related to sales of former branch buildings which were no longer in
use by the Bank. These sales resulted in net gains on sale of other
real estate owned totaling $0.5
million during the quarter, comparing favorably to
negligible gains on similar sales in the prior quarter and net
losses totaling $0.5 million in the
second quarter of 2023.
Balance Sheet
Total assets were $4.15 billion at June 30,
2024, a $76.0 million decline
from December 31, 2023, but a
$53.7 million increase from
June 30, 2023.
Total loans were $3.43 billion at
June 30, 2024, up $85.7 million from December 31, 2023, and up $114.2 million from June
30, 2023.
Total deposits, nearly all of which remain core deposits, were
$3.40 billion at June 30, 2024, down $33.0
million from December 31,
2023, and down $5.8 million
from June 30, 2023.
Noninterest-bearing demand deposits comprised 28.7% of the Bank's
total core deposits at June 30, 2024,
compared to 30.6% and 31.8% at December
31 and June 30, 2023,
respectively. Like most in the banking industry, the Bank has seen
a modest shift in its deposit portfolio from noninterest-bearing
deposits to interest-bearing deposits as prevailing interest rates
have increased over the last several quarters. Even with this
shift, the Bank's noninterest-bearing deposit percentage remains
high and continues to assist its strong financial performance.
During the second quarter of 2024 Bank First entered $55.0 million in borrowings from the Federal Home
Loan Bank with maturities ranging from one to three years. The Bank
intends to use these borrowings to fund loan demand by our customer
base as it has recently outpaced deposit growth.
Asset Quality
Nonperforming assets at June 30, 2024 remained negligible, totaling
$11.0 million compared to
$9.1 million and $7.2 million at the end of the fourth and second
quarters of 2023, respectively. Nonperforming assets to total
assets ended the second quarter of 2024 at 0.27%, compared to 0.21%
and 0.18% at the end of the fourth and second quarters of 2023,
respectively. Including the most recent quarter, the Bank has seen
recoveries of previously charged-off loans exceed currently
charged-off loans for six consecutive quarters.
Capital Position
Stockholders' equity totaled
$614.6 million at June 30, 2024, a decrease of $5.2 million from the end of 2023 but an increase
of $43.7 million from June 30, 2023. Dividends totaling $7.1 million and repurchases of BFC common stock
totaling $29.5 million outpaced
earnings of $31.5 million through the
first six months of 2024, causing the decline in capital. The
Bank's book value per common share totaled $61.27 at June 30,
2024 compared to $59.80 at
December 31, 2023 and $54.95 at June 30,
2023. Tangible book value per common share (non-GAAP)
totaled $41.42 at June 30, 2024 compared to $40.30 at December 31,
2023 and $35.18 at
June 30, 2023.
Dividend Declaration
Bank First's Board of Directors
approved a quarterly cash dividend of $0.40 per common share, payable on October 9, 2024, to shareholders of record as of
September 25, 2024. This dividend
represents a 14.3% and 33.3% increase from the dividend from the
prior quarter and prior-year second quarter, respectively.
Bank First Corporation provides financial services through its
subsidiary, Bank First, N.A., which was incorporated in 1894. Bank
First offers loan, deposit and treasury management products at each
of its 26 banking locations in Wisconsin. The Bank has grown through both
acquisitions and de novo branch expansion. The Bank employs
approximately 371 full-time equivalent staff and has assets of
approximately $4.1 billion. Insurance
services are available through our bond with Ansay &
Associates, LLC. Trust, investment advisory and other financial
services are offered in collaboration with several regional
partners. Further information about Bank First Corporation is
available by clicking on the Shareholder Services tab at
www.bankfirst.com.
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