Bank First Announces Net Income for the Second Quarter of 2019

MANITOWOC, Wis., July 18, 2019 /PRNewswire/ -- Bank First Corporation BFC ("Bank First"), the holding company for Bank First, N.A., reported net income of $6.0 million, or $0.91 per share, for the second quarter of 2019, compared with net income of $6.4 million, or $0.96 per share, for the respective prior-year period. For the six months ended June 30, 2019, Bank First earned $12.6 million, or $1.91 per share, compared to $13.5 million, or $2.01 per share for the same period in 2018.

Operating Results

Net interest income during the second quarter of 2019 was $15.4 million, up $0.2 million from the previous quarter and down $0.4 million from the second quarter of 2018. Net interest income for the first six months of 2019 was $30.6 million, down from $32.1 million for the first six months of 2018.

Interest income related to purchased loan accounting entries, resulting from our purchase of Waupaca Bancorporation, Inc. ("Waupaca") during the fourth quarter of 2017, increased net income (after tax) during the second quarter of 2019 by $0.7 million, or $0.10 per share, compared to $1.2 million, or $0.18 per share, for the second quarter of 2018. For the first six months of 2019 and 2018 the impact of these purchase loan accounting entries increased net income (after tax) by $1.4 million, or $0.21 per share, and $2.7 million, or $0.40 per share, respectively.

Net interest margin was 3.76% for the second quarter of 2019, compared to 3.86% for the second quarter of 2018. The aforementioned purchase loan accounting entries added 0.21% and 0.39% to net interest margin for each of these periods, respectively. Net interest margin was 3.79% for the first six months of 2019, including 0.23% from the impact of purchase accounting entries, compared to 3.95%, including 0.44% from the impact of purchase accounting entries, for the first six months of 2018.

Bank First recorded a provision for loan losses of $0.5 million during the second quarter of 2019, compared to $0.9 million during the second quarter of 2018. Provision expense was $1.1 million for the first six months of 2019 compared to $1.4 million for the same period during 2018.

Noninterest income was $2.7 million during the second quarter of 2019, compared to $3.0 million during the second quarter of 2018. The largest change in noninterest income from the year-over-year second quarter comparison was in regard to loan servicing income. During the second quarter of 2018, Bank First experienced a $0.4 million increase in the valuation of our mortgage servicing rights related to loans that we sold on the secondary market. No similar upward valuation was warranted during the second quarter of 2019, leading to the negative year-over-year variance.

Noninterest expense was $9.9 million in the second quarter of 2019, compared to $10.1 million during the second quarter of 2018. Expenses related to Bank First's acquisition of Partnership Community Bancshares, Inc., which closed on July 12, 2019, totaled $0.5 million during the second quarter of 2019. These acquisition related expenses were primarily in the areas of outside service fees and occupancy and equipment expenses. Outside of the impacts of the acquisition in these areas, noninterest expenses fell in line with expectations and longer-term trends. 

Balance Sheet

Total assets were $1.81 billion at June 30, 2019, up $13.3 million from December 31, 2018, and up $64.6 million from June 30, 2018. Total loans were $1.42 billion at June 30, 2019, down $9.3 million from December 31, 2018, and $15.3 million from June 30, 2018. Continuing a trend of recent quarters, loan balances in markets acquired in the Waupaca transaction saw year-over-year contraction of $34.2 million, or approximately 13.3%. It is anticipated that we are nearing the end of contraction in the loan portfolios in these markets, and they should no longer be detrimental to overall loan growth in future quarters. Total deposits, nearly all of which remain core deposits, were $1.57 billion at June 30, 2019, up $17.8 million from December 31, 2018, and up $79.6 million from June 30, 2018. Deposit growth outpaced loan growth by $94.9 million over the trailing twelve-month period. Noninterest-bearing demand deposits increased $70.9 million year-over-year, comprising 30.6% of total deposits at June 30, 2019 compared to 27.4% one year earlier.

Asset Quality

Nonperforming assets at June 30, 2019 totaled $19.8 million, down from $23.3 million and $23.0 million at the end of the fourth and second quarters of 2018, respectively. Nonperforming assets to total assets ended the second quarter of 2019 at 1.10%, down from 1.30% and 1.32% at the end of the fourth and second quarter of 2018, respectively. Excluding relationships and foreclosed properties acquired in the Waupaca acquisition, Bank First's nonperforming assets to total assets equaled 0.18% at June 30, 2019.

Capital Position

Stockholders' equity totaled $185.4 million at June 30, 2019, an increase of $11.1 million from the end of 2018 and $20.2 million from June 30, 2018. Strong earnings served to increase capital while being offset by dividends totaling $5.0 million and repurchases of Bank First stock into treasury totaling $5.3 million during the trailing twelve months.

Dividend Declaration

Bank First's Board of Directors approved a quarterly cash dividend of $0.20 per common share, payable on October 8, 2019, to shareholders of record as of September 24, 2019.

For further information, contact:

Kevin M LeMahieu, Chief Financial Officer

Phone: (920) 652-3200  /  klemahieu@bankfirstwi.bank

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SOURCE Bank First Corporation