- Net income of $17.5 million
and $65.6 million for the three
months and year ended December 31,
2024, respectively
- Earnings per common share of $1.75 and $6.50 for
the three months and year ended December 31,
2024, respectively
- Annualized return on average assets of 1.60% and 1.56% for
the three months and year ended December 31,
2024, respectively
- Quarterly cash dividend of $0.45 per share declared, matching the prior
quarter and a 28.6% increase from the prior-year fourth
quarter
MANITOWOC, Wis., Jan. 21,
2025 /PRNewswire/ -- Bank First Corporation (NASDAQ:
BFC) ("Bank First" or the "Bank"), the holding company for Bank
First, N.A., reported net income of $17.5
million, or $1.75 per share,
for the fourth quarter of 2024, compared with net income of
$34.9 million, or $3.39 per share, for the prior-year fourth
quarter. For the year ended December 31,
2024, Bank First earned $65.6
million, or $6.50 per share,
compared to $74.5 million, or
$7.28 per share for the full year of
2023.
Financial results for the fourth quarter and full year of 2023
included several significant one-time transactions:
- The Bank sold 100% of its member interest in UFS, LLC ("UFS")
in a transaction that closed on October 1,
2023, resulting in a pre-tax gain on sale of $38.9 million.
- The Bank redeemed $8.3 million in
debt securities related to the Hometown Bancorp, Ltd. Capital Trust
II ("Trust II") during the fourth quarter of 2023 and informed
holders of securities of Hometown Bancorp, Ltd. Capital Trust I
("Trust I") of its intent to redeem $4.1
million in debt securities related to that trust on
January 7, 2024. These redemptions
led to the accelerated amortization of $1.4
million in fair value adjustments assigned to these
liabilities when they were acquired along with Hometown Bancorp
Ltd. ("Hometown") earlier in 2023. The impact of this acceleration
was recorded as an addition to interest expense for the fourth
quarter of 2023.
- The Bank sold available-for-sale US Treasury securities with a
par value of $50.0 million, resulting
in a realized loss on sale totaling $7.8
million recorded during the fourth quarter of 2023. These
securities had an average yield of 1.36%. Proceeds of these sales
were reinvested in a combination of short and long-term investments
with an average yield of 4.98%, increasing future interest income
by over $1.8 million annually.
- The Bank vacated the former corporate headquarters of Hometown,
moving this building to other real estate owned ("OREO"), and
revalued four other OREO properties (all former bank branches),
leading to a combined loss on OREO valuations of $1.6 million during the fourth quarter of
2023.
- The Bank closed a branch in Ashwaubenon during the first quarter of 2024,
concurrent with opening a new flagship location in its Green Bay market. Anticipating that the closed
branch would be moved to OREO in the first quarter of 2024 at an
expected valuation significantly below its carrying value, the Bank
impaired its cost basis by $0.4
million. This impairment expense was included in "other
noninterest expense" in the fourth quarter and full year of
2023.
After removing the impact of these one-time transactions, as
well as other one-time expenses related to acquisitions and gains
and losses on sales of securities and OREO, the Bank reported
adjusted net income (non-GAAP) of $17.4
million, or $1.74 per share,
for the fourth quarter of 2024, compared with $14.8 million, or $1.44 per share, for the prior-year fourth
quarter. For the year ended December 31,
2024, adjusted net income (non-GAAP) totaled $65.0 million, or $6.45 per share, compared to $59.2 million, or $5.82 per share for the full year of 2023.
"We are pleased with the financial results for 2024," stated CEO
Mike Molepske. "The Bank delivered a
return on assets, a measure of both profitability and efficiency,
of 1.56%, marking the second consecutive year this metric exceeded
1.50%. Our consistently strong financial performance is directly
related to the tireless efforts of our team to remain true to our
promise to be 'a relationship-based bank that delivers innovative
solutions to the communities we serve.'"
Operating Results
Net interest income ("NII") during
the fourth quarter of 2024 was $35.6
million, $0.3 million less
than the previous quarter but $2.6
million higher than the fourth 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 $0.8 million, or $0.06 per share after tax, during the fourth
quarter of 2024, compared to $1.7
million, or $0.13 per share
after tax, during the previous quarter and $0.4 million, or $0.03 per share after tax, during the fourth
quarter of 2023. A previously purchased loan with remaining
associated purchase accounting adjustments of $0.6 million was fully repaid before maturity
during the third quarter of 2024, leading to the elevated impact of
purchase accounting during the previous quarter. The redemptions of
Trust I and Trust II, noted earlier in this release, reduced the
impact of purchase accounting during the fourth quarter of
2023.
Net interest margin ("NIM") was 3.61% for the fourth quarter of
2024, compared to 3.76% for the previous quarter and 3.53% for the
fourth quarter of 2023. NII from purchase accounting increased NIM
by 0.08%, 0.17%, and 0.01% for each period, respectively. In
addition to the volatility caused by purchase accounting over
recent quarters, a seasonal buildup of higher interest rate
deposits through the fourth quarter of 2024 further hampered NIM
for that quarter. While the Bank makes a margin on these funds
(approximately 0.35%), elevated levels in these products decreases
the Bank's overall NIM. Even with the buildup of these deposits,
cost of funds for the Bank declined 6 basis points
quarter-over-quarter.
Bank First recorded a negative provision for credit losses
totaling $1.0 million during the
fourth quarter of 2024, comparing favorably to no provision in the
previous quarter and a positive provision of $0.5 million during the fourth quarter of 2023.
While the Bank's overall credit quality has remained consistently
strong over all these periods, improvement in financial trends
related to two relationships that were part of the Hometown
acquisition allowed for a reduction in specific reserves related to
them, causing the decrease in overall required allowance for credit
losses related to the loan portfolio. Recoveries of previously
charged-off loans exceeded currently charged-off loans by
$0.4 million for the year ended
December 31, 2024, compared to
recoveries exceeding charge-offs by $0.1
million for the prior year.
Noninterest income was $4.5
million for the fourth quarter of 2024, compared to
$4.9 million and $42.5 million for the prior quarter and fourth
quarter of 2023, respectively. Noninterest income during the fourth
quarter of 2023 included the aforementioned gain on sale of UFS,
totaling $38.9 million. Income
provided by the Bank's investment in Ansay & Associates, LLC
("Ansay") experienced a typical seasonal fourth-quarter decline,
down $1.0 million from the prior
quarter but nearly matching the fourth quarter of 2023. Income from
Ansay increased by $0.6 million, or
19.8%, for the full year of 2024 compared to 2023. The Bank
experienced a minimal positive adjustment to its mortgage servicing
rights asset during the fourth quarter of 2024, comparing favorably
to a negative valuation adjustment of $0.3
million and $0.1 million
during the prior quarter and prior-year fourth quarter,
respectively. All other areas of noninterest income remained
consistent with recent quarterly results.
Noninterest expense was $19.3
million for the fourth quarter of 2024, compared to
$20.1 million during the prior
quarter and $28.9 million during the
fourth quarter of 2023. Noninterest expenses during the fourth
quarter of 2023 included the aforementioned $7.8 million loss on the sale of securities,
$1.6 million loss on the sale and
valuation adjustments of OREO, and $0.4
million impairment to the cost basis of a branch location.
Data processing expense continued its elevated trend during 2024 as
the Bank incurred another $0.4
million in project-related expenses during the current
quarter as part of the Bank's continued upgrade of its digital
banking platform. All other areas of noninterest expense have
remained well-contained over the past five quarters as the Bank has
worked efficiencies from recent acquisitions into its
operations.
Balance Sheet
On December 31,
2024, total assets were $4.50
billion, an increase of $273.2
million, or 6.5%, from December 31,
2023.
Total investment securities available-for-sale and
held-to-maturity were $333.8 million
on December 31, 2024, increasing
$88.3 million, or 36.0%, from
December 31, 2023. The previously
mentioned seasonal buildup of higher interest rate deposits during
the fourth quarter of 2024 included many that required
collateralization by the Bank's investment portfolio. In response
to this heightened need for collateral, the Bank invested
$100.0 million into a 30-day US
Treasury note which will mature before the end of January 2025.
Total loans were $3.52 billion on
December 31, 2024, up $174.2 million, or 5.2%, from December 31, 2023. Loans grew 5.3% on an
annualized basis during the fourth quarter of 2024.
Total deposits, nearly all of which remain core deposits, were
$3.66 billion on December 31, 2024, which is up $228.2 million, or 6.7%, from December 31, 2023. Total deposits grew 20.2% on
an annualized basis during the fourth quarter of 2024, though much
of this growth was in higher interest earning seasonal
deposits.
Asset Quality
Nonperforming assets on December 31, 2024, remained negligible, totaling
$9.2 million compared to $11.9 million and $9.1
million at the end of the prior quarter and prior year,
respectively. Nonperforming assets to total assets ended the fourth
quarter of 2024 at 0.21%, down from 0.28% at the end of the prior
quarter and matching the end of the prior year. OREO on
December 31, 2024, consisted of one
property valued at $0.7 million,
currently listed for sale, previously an operating branch location
of an acquired institution.
Capital Position
Stockholders' equity totaled
$639.7 million on December 31, 2024, an increase of $19.9 million from the end of 2023. Earnings of
$65.6 million were offset by
dividends totaling $15.6 million and
repurchases of BFC common stock totaling $31.2 million during 2024. The Bank's book value
per common share totaled $63.89 on
December 31, 2024, compared to
$59.80 on December 31, 2023. Tangible book value per common
share (non-GAAP) totaled $44.28 on
December 31, 2024, compared to
$40.30 on December 31, 2023.
Dividend Declaration
Bank First's Board of Directors
approved a quarterly cash dividend of $0.45 per common share, payable on April 9, 2025, to shareholders of record as of
March 26, 2025. This dividend matches
the previous quarter's dividend and represents a 28.6% increase
over the dividend declared one year earlier.
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 its 26 banking locations in Wisconsin. The Bank has grown through both
acquisitions and de novo branch expansion. The Bank employs
approximately 357 full-time equivalent staff and has assets of
approximately $4.5
billion. Insurance services are available through its
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 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
