Bank First reports third quarter 2021 net income

MANITOWOC, Wisconsin., October 19, 2021 / PRNewswire / – Bank First Corporation (NASDAQ: BFC) (“Bank First” or “Bank”), the holding company of Bank First, NA, reported net income of $ 11.2 million, Where $ 1.46 per share, for the third quarter of 2021, compared to net income of $ 11.0 million, Where $ 1.42 per share, for the third quarter of the previous fiscal year. For the nine months ended September 30, 2021, Bank First just won $ 34.3 million, Where $ 4.45 per share, compared to $ 26.5 million, Where $ 3.57 per share for the same period in 2020.

Operating results
Net interest income (“NII”) during the third quarter of 2021 was $ 22.9 million, up $ 1.1 million of the previous quarter and corresponding to the third quarter of 2020. The NII for the first nine months of 2021 was $ 66.9 million, from $ 62.4 million for the first nine months of 2020.

Over the past 18 months, Bank First has been very active in the Paycheck Protection Program (“PPP”), a Small Business Administration (“SBA”) loan program aimed at supporting small businesses in the turbulent economic environment created. by COVID-19. pandemic (“COVID”). Bank First was born on $ 381.3 million in loans to new and existing customers under this program, $ 62.6 million of which remained unpaid and unpaid at September 30, 2021. The origination fees collected on the origination of PPP loans totaled more than $ 14.6 million. Under accounting rules, the Bank accounts for these charges as an addition to the NII over the contractual life of the related loan, with any remaining commission being fully recognized in the NII if the loan is repaid or canceled before the original maturity date. As is the case for any institution participating in PPP arrangements, this accounting treatment resulted in significant variations in the NII and the Bank’s interest margins from one quarter to another depending on the number of PPP loans. canceled during the period. The unrecognized PPP origination fees totaled $ 2.2 million To September 30, 2021, compared to $ 2.6 million and $ 5.8 million To the 31st of December and September 30, 2020, respectively.

The NII related to purchase ledger entries, resulting from our acquisitions of other institutions in recent years, increased net income (after tax) in the third quarter of 2021 by $ 0.2 million, Where $ 0.03 per share, compared to $ 1.1 million, Where $ 0.15 per share, for the third quarter of 2020. For the first nine months of 2021 and 2020, the impact of these purchase accounting entries increased net income (after tax) by $ 0.9 million, Where $ 0.12 per share, and $ 2.5 million, Where $ 0.34 per share, respectively.

The net interest margin (“NIM”) was 3.47% for the third quarter of 2021, compared to 3.84% for the third quarter of 2020. The aforementioned purchase ledger entries added 0.04% and 0, 26% to NIM for each of these periods, respectively. The NIM is 3.47% for the first nine months of 2021, of which 0.07% impact of the accounting entries of purchases, against 3.77%, of which 0.21% of the impact of accounting entries of ‘purchases, for the first nine months of 2020.

Bank First recorded an allowance for loan losses of $ 0.7 million in the third quarter of 2021, compared to $ 1.4 million during the third quarter of 2020. The provision charge was $ 2.5 million for the first nine months of 2021 compared to $ 5.5 million for the same period in 2020. While provision charges were high in 2020 in response to the uncertainty created by COVID and the company’s response to it, actual measures of asset quality over the three First quarters of 2021, as discussed later in this release, remained strong and enabled a reduction in the provision charge during 2021.

Non-interest income was $ 5.0 million for the third quarter of 2021, compared to $ 5.1 million for the third quarter of 2020. Service fee revenue continues to show strong performance in 2021, showing an increase of more than eleven percent in the third quarter of 2021 compared to the third quarter of 2020 as additional markets of the Bank through three acquisitions over the past four years continue to fully integrate into the branch network. All other components of non-interest income were very comparable in the third quarter year over year. While the gain on secondary market mortgage sales was comparable for the third quarters year over year, we saw our profitability on these loans sold decline from all-time highs for the past three quarters. While origination volume has remained at a high level, the average profit margin on each sale has declined as the industry has become more competitive with pricing.

Non-interest charges were $ 12.5 million in the third quarter of 2021, compared to $ 12.2 million in the previous quarter as well as in the third quarter of 2020. Data processing costs have decreased $ 0.1 million and $ 0.2 million compared to the previous quarter and the third quarter of the previous fiscal year, respectively, mainly due to the reduction in expenses caused by large origins of PPP loans starting in the second quarter of 2020 and ending in the second quarter of 2021. Other non-interest expense increased 23.5% compared to the previous quarter. quarter and 27.3% compared to the third quarter of the previous fiscal year, mainly due to several insignificant insignificant expenditure items which added up to create larger differences.

Balance sheet
Total assets were $ 2.85 billion To September 30, 2021, a $ 128.6 million increase December 31, 2020, and up to $ 207.4 million of September 30, 2020. The total loans were $ 2.21 billion To September 30, 2021, up $ 17.5 million of December 31, 2020, and up to $ 15.7 million of September 30, 2020. Excluding PPP set-ups and repayments or discounts, loans increased by 12.3% over the last twelve months. Annualized loan growth in the third quarter of 2021, also excluding PPP activity, was 8.8%. Total deposits, which almost all remain core deposits, were $ 2.47 billion To September 30, 2021, up $ 151.3 million of December 31, 2020, and up to $ 201.2 million of September 30, 2020. Demand deposits not bearing interest represented 32.1% of the total core deposits of the Bank at September 30, 2021, against 31.2% and 30.4% at the 31st of December and September 30, 2020, respectively. Term deposits, which generally bear the highest interest rates of all deposit products, accounted for 10.5% of the Bank’s total core deposits at September 30, 2021, against 14.8% and 16.8% at the 31st of December and September 30, 2020.

Asset quality
Non-performing assets at September 30, 2021 totaled $ 12.1 million, below $ 14.0 million and $ 20.8 million at the end of the fourth and third quarters of 2020, respectively. Non-performing assets to total assets closed the third quarter of 2021 at 0.42%, up from 0.52% and 0.79% at the end of the fourth and third quarters of 2020, respectively. A majority of non-productive assets September 30, 2021, relate to a commercial real estate loan totaling $ 7.1 million which changed to non-exercise status during june 2020. While payments remained current on this loan, the transition to non-recognition status was deemed prudent by management due to the loss of a significant tenant in the underlying commercial property.

Position of the capital
Equity rises $ 315.3 million To September 30, 2021, an augmentation of $ 20.4 million from the end of 2020 and $ 29.2 million of September 30, 2020. Strong profits were used to increase capital while being offset by dividends totaling $ 7.1 million during the first three quarters of 2021 and $ 8.7 million during the last twelve months. A further reduction in capital was $ 6.1 million used to repurchase 87,319 common shares during the first three quarters of 2021. The tangible book value per share of Bank First common stock has increased by 14.8% over the past twelve months.

Declaration of dividend
Bank First’s board of directors approved a quarterly cash dividend of $ 0.22 per common share, payable on January 5, 2022, to shareholders of record on December 22, 2021.

Bank First Corporation provides financial services through its subsidiary, Bank First, which was incorporated in 1894. The bank is an independent community bank with 21 bank locations in Wisconsin. The bank has grown through acquisitions and the expansion of new branches. The company employs approximately 302 full-time equivalent employees and has assets of approximately $ 2.8 billion. Bank First offers loan, deposit and cash management products in each of its bank offices. Insurance services are available through our link with Ansay & Associates, LLC. Trust, investment advisory and other financial services are offered through the bank’s partnership with Legacy Private Trust, an alliance with Morgan Stanley and an affiliation with McKenzie Financial Services, LLC. The bank is a co-owner of banking technology OEM, UFS, LLC, which provides digital, basic, cybersecurity, managed computing and cloud services. Further information on Bank First Corporation is available by clicking on the Investor Relations tab at www.BankFirstWI.bank.

Forward-Looking Statements: This press release may contain certain “forward-looking statements” that represent Bank First Corporation’s expectations or beliefs regarding future events. These forward-looking statements relate to matters which are inherently subject to risks and uncertainties. Due to the risks and uncertainties inherent in forward-looking statements, readers are cautioned not to place undue reliance on them, whether included in this press release or made elsewhere from time to time by or on behalf of Bank First Corporation. . Bank First Corporation disclaims any obligation to update these forward-looking statements. Further, statements regarding historical share price performance are not indicative or guarantee future price performance.

For more information, contact:
Kevin M LeMahieu, Chief Financial Officer
Telephone: (920) 652-3200 / [email protected]

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