- Net income of $15.4 million
and earnings per common share of $1.51 for the three months ended March 31, 2024
- Annualized return on average assets of 1.50% for the three
months ended March 31, 2024
- 261,340 common shares repurchased, 2.5% of outstanding
shares as of the beginning of the period, during the first quarter
of 2024
- Quarterly cash dividend of $0.35 per share declared, matching the
prior-quarter and 16.7% higher than the prior-year first
quarter
MANITOWOC, Wis., April 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 $15.4
million, or $1.51 per share,
for the first quarter of 2024, compared with net income of
$10.7 million, or $1.09 per share, for the prior-year first
quarter. 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, the Bank reported adjusted net income
(non-GAAP) of $15.4 million, or
$1.51 per share, for the first
quarter of 2024, compared with $14.7
million, or $1.50 for the
prior-year first quarter.
Operating Results
Net interest income ("NII") during
the first quarter of 2024 was $33.3
million, up $0.4 million from
the previous quarter and up $1.1
million from the first quarter of 2023. The impact of
purchase accounting increased NII by $1.2
million, or $0.09 per share
after tax, during the first quarter of 2024, compared to
$0.4 million, or $0.03 per share after tax, during the previous
quarter and $1.2 million, or
$0.17 per share after tax, during the
first quarter of 2023.
Net interest margin ("NIM") was 3.62% for the first quarter of
2024, compared to 3.53% for the previous quarter and 3.74% for the
first quarter of 2023. NII from purchase accounting increased NIM
by 0.13%, 0.03% and 0.26% for each period, respectively.
Bank First recorded a provision for credit losses of
$0.2 million during the first quarter
of 2024, compared to $0.5 million
during the previous quarter and $4.2
million during the first quarter of 2023. Net recoveries of
previously charged-off loan balances over currently charged-off
loans totaled $0.6 million during the
first quarter of 2024, adding to the recorded provision for credit
losses in creating an adequate credit loss reserve for the Bank's
growth in its loan portfolio. The acquisition of the loan portfolio
of Hometown Bancorp, Ltd. ("Hometown") during the first quarter of
2023 resulted in a day one provision for credit losses expense of
$3.6 million, leading to the
significant year-over-year first quarter variance in provision
expense.
Noninterest income was $4.4
million for the first quarter of 2024, compared to
$5.8 million for the first quarter of
2023. One differentiator in year-over-year first quarter
noninterest income was the absence of income from UFS, LLC ("UFS")
during 2024 compared to $0.9 million
of revenue from UFS during the first quarter of 2023. The Bank sold
100% of its member interest in UFS in a transaction that closed on
October 1, 2023. The Bank also
experienced a $0.3 million negative
valuation adjustment to its mortgage servicing rights asset during
the first quarter of 2024, which compared unfavorably to a
$0.8 million favorable adjustment in
the prior-year first quarter. All other components of noninterest
income were relatively consistent year-over-year.
Noninterest expense was $20.3
million in the first quarter of 2024, compared to
$19.7 million during the first
quarter of 2023. Personnel expense increased by $1.0 million year-over-year as additional staff
from the acquisition of Hometown impacted the full first quarter of
2024 compared to just over one-half of the first quarter of 2023.
Data processing expenses, which increased by $0.5 million year-over-year, included
$0.3 million paid to a vendor during
the first quarter of 2024 related to upgrading the Bank's online
customer platform. Postage, stationery and supplies expenses, as
well as outside service fees, were heavily impacted by one-time
acquisition expenses from the acquisition of Hometown during the
first quarter of 2023, leading to a year-over-year reduction in
these expense categories during the first quarter of 2024.
The comparability of year-over-year income tax expense was
affected by a provision enacted in the Bank's home state during
2023 which offered an income tax exclusion on certain commercial
and agricultural loans to borrowers who reside or are located in
the state of Wisconsin. While
Wisconsin's governor signed this
provision on July 5, 2023, rules
related to qualifying loans under it were not finalized until the
first quarter of 2024. Based on these final rules, an additional
benefit of $1.3 million was recorded
during the first quarter of 2024 as a refinement to provisions for
income taxes from 2023.
Balance Sheet
Total assets were $4.10 billion at March 31,
2024, a decrease of $121.9
million from December 31,
2023, and $67.3 million lower
than March 31, 2023.
Total loans were $3.38 billion at
March 31, 2024, up $40.4 million from December 31, 2023, and up $60.1 million from March
31, 2023. Loans grew by 4.9% annualized during the first
quarter of 2024. Much of this growth occurred later in the quarter,
muting the impact on earnings and NII, but future quarters should
benefit to a greater degree.
Total deposits, nearly all of which remain core deposits, were
$3.42 billion at March 31, 2024, down $16.9
million from December 31,
2023, and down $47.2 million
from March 31, 2023.
Noninterest-bearing demand deposits comprised 29.0% of the Bank's
total deposits at March 31, 2024,
compared to 31.8% at March 31, 2023,
as the Bank experienced a modest shift in the makeup of its deposit
portfolio towards interest-bearing balances.
Asset Quality
Nonperforming assets at March 31, 2024 totaled $12.5 million, up from $9.1 million at the end of the fourth and first
quarters of 2023. The current quarter increase in nonperforming
assets resulted from one loan totaling $3.6
million which was moved to nonaccrual status. This loan and
over 95% of the Bank's total nonaccrual loan balances were included
in the loan portfolios of the Bank's previous two acquisitions.
Nonperforming assets to total assets ended the first quarter of
2024 at 0.31%, up from 0.21% at the end of the prior quarter and
0.22% at the end of the prior-year first quarter.
Capital Position
Stockholders' equity totaled
$609.3 million at March 31, 2024, an increase of $47.0 million from the end of the first quarter
of 2023, but a decrease of $10.5
million from December 31,
2023. Dividends totaling $3.5
million and repurchases of BFC common stock totaling
$22.3 million outpaced earnings of
$15.4 million during the quarter,
causing the decline in capital. The Bank's book value per common
share totaled $60.16 at March 31, 2024 compared to $59.80 at December 31,
2023 and $54.04 at
March 31, 2023. Tangible book value
per common share (non-GAAP) totaled $40.35 at March 31,
2024 compared to $40.30 at
December 31, 2023 and $34.14 at March 31,
2023.
Dividend Declaration
Bank First's Board of Directors
approved a quarterly cash dividend of $0.35 per common share, payable on July 10, 2024, to shareholders of record as of
June 26, 2024.
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 361 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