Bank First announces net profit for the second quarter of 2022

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  • Net income of $11.7 and $21.8 million for the three and six months ended June 30, 2022respectively
  • Earnings per common share of $1.55 and $2.89 for the three and six months ended June 30, 2022respectively
  • Quarterly cash dividend of $0.25 per share reported, an increase of 13.6% over the prior quarter and 19.0% over the second quarter of the prior year

MANITOWOC, Wis., July 19, 2022 /PRNewswire/ — Bank First Corporation (NASDAQ: BFC) (“Bank First” or the “Bank”), the holding company of Bank First, NA, reported net income of $11.7 millionWhere $1.55 per share, in the second quarter of 2022, compared to net income of $11.5 millionWhere $1.50 per share, for the second quarter of the previous year. For the six months ended June 30, 2022Bank First won $21.8 millionWhere $2.89 per share, compared to $23.1 millionWhere $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 millionat the top $1.2 million of the previous quarter and more $1.7 million beginning in the second quarter of 2021. Interest income on loans made through the Small Business Administration’s Paycheck Protection Program (“PPP”) totaled $0.4 million in the second quarter of 2022, compared to $0.7 million in the previous quarter and $1.9 million during the second quarter of 2021.

For much of the first two quarters of 2022, the Bank has been engaged in a strategy to improve the NII, using $300.0 million short-term borrowings from the Federal Home Loan Bank and investing these funds in short-term, liquid, risk-free, interest-bearing assets. This strategy increased the NII by $0.2 million and $0.1 million in the second and first quarters of 2022, respectively.

Purchase accounting entries, resulting from our acquisitions of other institutions over the past few years, increased the NII during the second quarter of 2022 by $0.4 millionWhere $0.04 per share after tax, versus $0.3 million and $0.4 millionWhere $0.03 and $0.04 per share after tax, for the prior quarter and the second quarter of 2021, respectively. For the first six months of 2022 and 2021, the impact of these purchase accounting entries increased the NII by $0.7 millionWhere $0.07 per share after tax, and $0.9 millionWhere $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 prior quarter and 3.37% for the second quarter of 2021. buying added 0.05%, 0.04% and 0.08% to the NIM respectively for each of these periods. The aforementioned short-term NII improvement strategy reduced the NIM by 0.27% in the current quarter and by 0.29% in the prior quarter.

Bank First recorded a provision for loan losses of $0.5 million in the second quarter of 2022, compared to $1.2 million in the previous quarter and $1.0 million during the second quarter of 2021. The allocation to provisions was $1.7 million for the first six months of 2022 compared to $1.9 million for the same period in 2021. Recoveries of previously written off loans exceeded currently written off loans by $0.7 million in the first six months of 2022, compared to recoveries slightly exceeding charges in the first six months of 2021.

Non-interest income was $5.6 million for the second quarter of 2022, compared to $5.2 million in the previous quarter and $6.6 million for the second quarter of 2021. The main catalyst for the decline in non-interest revenue between the second quarters year-over-year was the industry-wide slowdown in residential mortgages, which led to lower gains on sales of secondary mortgages. market $1.8 million. To compensate for 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.

Non-interest expenses were $13.2 million in the second quarter of 2022, compared to $12.7 million in the previous quarter and $12.3 million during the second quarter of 2021. The year-over-year increase in non-interest expense in the second quarter was primarily 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 of $0.06 during this period) and $1.1 million in the first six months of 2022 (negative impact on after-tax earnings per share of $0.12 during this period). The majority of these expenses have been classified as external service costs. Occupancy, equipment and office expenses increased in the first six months of 2022 due to significant inflationary pressures.

Balance sheet

The total assets were $2.96 billion at June 30, 2022a $23.5 million increase December 31, 2021and until $142.1 million of June 30, 2021. Total loans were $2.39 billion at June 30, 2022at the top $152.1 million of December 31, 2021and until $162.4 million of June 30, 2021. Excluding PPP repayments or forgiveness, lending grew 13.3% over the last twelve months. Annualized loan growth in the second quarter of 2022 and the first six months of 2022, also excluding PPP activity, was 14.3% and 16.2%, respectively. Total deposits, which almost all remain basic deposits, have been $2.60 billion at June 30, 2022at the top $73.0 million of December 31, 2021and until $142.1 million of June 30, 2021. Non-interest bearing demand deposits represented 31.7% of the Bank’s total core deposits as at June 30, 2022.

Asset quality

Non-performing assets at June 30, 2022totaled $5.3 milliondown $8.2 million and $12.6 million at the end of the fourth and second quarters of 2021, respectively. Non-performing assets to total assets ended the second quarter of 2022 at 0.18%, compared to 0.28% and 0.45% at the end of the fourth and second quarters of 2021, respectively.

Capital position

Equity amounts to $314.2 million at June 30, 2022a decrease of $8.5 million from the end of 2021 but an increase of $2.7 million of June 30, 2021. Interest rate fluctuations during the first half of 2022 had a significant impact on the value of investments in the Bank’s available-for-sale investment portfolio, creating an unrealized loss in other comprehensive income which reduced shareholders’ equity by $7.4 million during the second trimester and $15.6 million year to date. Dividends totaling $3.3 million and share buybacks totaling $12.1 million further reduced capital in the first six months of 2022. Strong earnings helped to partially offset these elements, increasing capital by $21.8 million.

Declaration of dividend

Bank First’s Board of Directors has approved a quarterly cash dividend of $0.25 per common share, payable on October 5, 2022to shareholders registered in 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 a year earlier.

For more information, contact:
Kevin M LeMahieuFinancial director
Phone: (920) 652-3200 / [email protected]

SOURCE Bank First Corporation

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