{"id":515429,"date":"2021-07-20T18:53:26","date_gmt":"2021-07-20T22:53:26","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/bank-first-announces-net-income-for-the-second-quarter-of-2021\/"},"modified":"2021-07-20T18:53:26","modified_gmt":"2021-07-20T22:53:26","slug":"bank-first-announces-net-income-for-the-second-quarter-of-2021","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/bank-first-announces-net-income-for-the-second-quarter-of-2021\/","title":{"rendered":"Bank First Announces Net Income for the Second Quarter of 2021"},"content":{"rendered":"<div class=\"xn-newslines\">\n<h2 class=\"xn-hedline\">&#8211; Net income of $11.5 and $23.1 million for the three and six months ended June 30, 2021<\/h2>\n<h2 class=\"xn-hedline\">&#8211; Earnings per common share of $1.50 and $2.99 for the three and six months ended June 30, 2021<\/h2>\n<h2 class=\"xn-hedline\">&#8211; Annualized return on average assets of 1.65% for the six months ended June 30, 2021, compared to 1.32% for the first half of 2020<\/h2>\n<h2 class=\"xn-hedline\">&#8211; Quarterly cash dividend of $0.21 per share and special one-time cash dividend of $0.29 per share declared<\/h2>\n<p class=\"xn-distributor\">PR Newswire<\/p>\n<\/p><\/div>\n<div class=\"xn-content\">\n<p>\n        <span class=\"xn-location\">MANITOWOC, Wis.<\/span>, <span class=\"xn-chron\">July 20, 2021<\/span> \/PRNewswire\/ &#8212; Bank First Corporation (NASDAQ: BFC) (&#8220;Bank First&#8221; or the &#8220;Bank&#8221;), the holding company for Bank First, N.A., reported net income of <span class=\"xn-money\">$11.5 million<\/span>, or <span class=\"xn-money\">$1.50<\/span> per share, for the second quarter of 2021, compared with net income of <span class=\"xn-money\">$8.3 million<\/span>, or <span class=\"xn-money\">$1.11<\/span> per share, for the prior-year second quarter. For the six months ended <span class=\"xn-chron\">June 30, 2021<\/span>, Bank First earned <span class=\"xn-money\">$23.1 million<\/span>, or <span class=\"xn-money\">$2.99<\/span> per share, compared to <span class=\"xn-money\">$15.6 million<\/span>, or <span class=\"xn-money\">$2.14<\/span> per share for the same period in 2020.<\/p>\n<p>\n        <b>Operating Results<br \/><\/b>Net interest income (&#8220;NII&#8221;) during the second quarter of 2021 was <span class=\"xn-money\">$21.8 million<\/span>, down <span class=\"xn-money\">$0.3 million<\/span> from the previous quarter but up <span class=\"xn-money\">$1.0 million<\/span> from the second quarter of 2020. The quarter-over-quarter decline in NII was related entirely to interest income recognized on Paycheck Protection Program (&#8220;PPP&#8221;) loans. These loans produce volatile recognition of NII as discussed in the following paragraph. NII for the first six months of 2021 was <span class=\"xn-money\">$43.9 million<\/span>, up from <span class=\"xn-money\">$39.4 million<\/span> for the first six months of 2020.<\/p>\n<p>Throughout the previous fifteen months Bank First was a very active participant in the PPP, a Small Business Administration (&#8220;SBA&#8221;) loan program aimed at supporting small business through the turbulent economic environment created by the COVID-19 pandemic (&#8220;COVID&#8221;). This program provided funds to small businesses with very favorable loan terms and allowed for forgiveness by the SBA provided the funds are utilized by the companies as stipulated by the program. Bank First originated over <span class=\"xn-money\">$381.3 million<\/span> in loans to new and existing customers under this program, <span class=\"xn-money\">$127.3 million<\/span> of which remained unpaid and unforgiven as of <span class=\"xn-chron\">June 30, 2021<\/span>. In addition to providing much needed support to these small businesses, this program produced significant income for the Bank. Origination fees collected from PPP loan originations totaled over <span class=\"xn-money\">$14.6 million<\/span>. Under accounting rules, the Bank recognizes these fees as an addition to NII over the contractual life of the related loan, with any remaining fee being fully recognized into NII if the loan is paid off or forgiven prior to the original maturity date. As is the case with any institution participating in PPP originations, this accounting treatment has caused significant variations in the Bank&#8217;s NII and interest margins quarter-to-quarter based on how many PPP loans are forgiven during the period. Unrecognized PPP origination fees totaled <span class=\"xn-money\">$4.3 million<\/span> at <span class=\"xn-chron\">June 30, 2021<\/span>, compared to <span class=\"xn-money\">$2.6 million<\/span> and <span class=\"xn-money\">$7.5 million<\/span> at <span class=\"xn-chron\">December 31<\/span> and <span class=\"xn-chron\">June 30, 2020<\/span>, respectively.<\/p>\n<p>NII related to purchase accounting entries, resulting from our acquisitions of other institutions over the last several years, increased net income (after tax) during the second quarter of 2021 by <span class=\"xn-money\">$0.3 million<\/span>, or <span class=\"xn-money\">$0.04<\/span> per share, compared to <span class=\"xn-money\">$0.7 million<\/span>, or <span class=\"xn-money\">$0.09<\/span> per share, for the second quarter of 2020. For the first six months of 2021 and 2020 the impact of these purchase loan accounting entries increased net income (after tax) by <span class=\"xn-money\">$0.7 million<\/span>, or <span class=\"xn-money\">$0.09<\/span> per share, and <span class=\"xn-money\">$1.4 million<\/span>, or <span class=\"xn-money\">$0.20<\/span> per share, respectively.<\/p>\n<p>Net interest margin (&#8220;NIM&#8221;) was 3.37% for the second quarter of 2021, compared to 3.67% for the second quarter of 2020. The aforementioned purchase loan accounting entries added 0.08% and 0.16% to NIM for each of these periods, respectively. NIM was 3.47% for the first six months of 2021, including 0.08% from the impact of purchase accounting entries, compared to 3.74%, including 0.19% from the impact of purchase accounting entries, for the first six months of 2020.<\/p>\n<p>Bank First recorded a provision for loan losses of <span class=\"xn-money\">$1.0 million<\/span> during the second quarter of 2021, compared to <span class=\"xn-money\">$3.2 million<\/span> during the second quarter of 2020. Provision expense was <span class=\"xn-money\">$1.9 million<\/span> for the first six months of 2021 compared to <span class=\"xn-money\">$4.1 million<\/span> for the same period during 2020. Recoveries of previously charged-off loans negligibly exceeded currently charged-off loans through the first six months of 2021, compared to a net recovery of previously charged-off loans totaling <span class=\"xn-money\">$0.6 million<\/span> during the first six months of 2020. The provision expense recorded during the most recent quarter was primarily driven by solid loan growth, excluding reductions in PPP loan balances, during the period. <\/p>\n<p>Noninterest income was <span class=\"xn-money\">$6.6 million<\/span> for the second quarter of 2021, compared to <span class=\"xn-money\">$7.8 million<\/span> for the second quarter of 2020. The year-over-year decline in quarterly noninterest income was driven by the sale of <span class=\"xn-money\">$36.6 million<\/span> of U.S. Treasury notes during the second quarter of 2020, generating a gain on sale of <span class=\"xn-money\">$3.1 million<\/span>. No similar gain occurred during the second quarter of 2021. Following the trend of the last several quarters, service charge income was strong at <span class=\"xn-money\">$1.6 million<\/span>, an increase of 37.8% over the prior year second quarter. Loan servicing income totaled <span class=\"xn-money\">$1.2 million<\/span>, compared to <span class=\"xn-money\">$0.2 million<\/span> in the prior year second quarter. The current year second quarter included a <span class=\"xn-money\">$0.6 million<\/span> positive adjustment to the value of the Bank&#8217;s mortgage servicing rights, compared to a <span class=\"xn-money\">$0.5 million<\/span> negative adjustment to these rights in the prior year second quarter. Finally, net gains on sales of mortgage loans to the secondary market totaled <span class=\"xn-money\">$2.2 million<\/span> during the second quarter of 2021, comparing favorably to <span class=\"xn-money\">$1.3 million<\/span> during the second quarter of 2020.<\/p>\n<p>Noninterest expense was <span class=\"xn-money\">$12.2 million<\/span> in the second quarter of 2021, compared to <span class=\"xn-money\">$14.4 million<\/span> during the second quarter of 2020. The year-over-year decline in quarterly noninterest expense was principally related to expenses resulting from Bank First&#8217;s acquisition of Tomah Bancshares, Inc., totaling <span class=\"xn-money\">$0.8 million<\/span>, and the recognition of a prepayment penalty related to early repayment of <span class=\"xn-money\">$30.0 million<\/span> in borrowings from the Federal Home Loan Bank of <span class=\"xn-location\">Chicago<\/span>, totaling <span class=\"xn-money\">$1.3 million<\/span>, both of which were one-time expenses occurring during the second quarter of 2020. Net gains on sales and valuations of other real estate owned during the second quarter of 2021 totaled <span class=\"xn-money\">$0.1 million<\/span>, comparing favorably to net losses of <span class=\"xn-money\">$0.5 million<\/span> during the second quarter of 2020.<\/p>\n<p>\n        <b>Balance Sheet<br \/><\/b>Total assets were <span class=\"xn-money\">$2.82 billion<\/span> at <span class=\"xn-chron\">June 30, 2021<\/span>, a <span class=\"xn-money\">$100.9 million<\/span> increase from <span class=\"xn-chron\">December 31, 2020<\/span>, and up <span class=\"xn-money\">$161.0 million<\/span> from <span class=\"xn-chron\">June 30, 2020<\/span>. Total loans were <span class=\"xn-money\">$2.23 billion<\/span> at <span class=\"xn-chron\">June 30, 2021<\/span>, up <span class=\"xn-money\">$33.8 million<\/span> from <span class=\"xn-chron\">December 31, 2020<\/span>, and up <span class=\"xn-money\">$110.2 million<\/span> from <span class=\"xn-chron\">June 30, 2020<\/span>. Excluding PPP originations and repayments or forgiveness, loans grew by 14.4% over the trailing twelve months. Annualized loan growth during the second quarter of 2021, also excluding PPP activity, amounted to 12.1%. Total deposits, nearly all of which remain core deposits, were <span class=\"xn-money\">$2.45 billion<\/span> at <span class=\"xn-chron\">June 30, 2021<\/span>, up <span class=\"xn-money\">$125.7 million<\/span> from <span class=\"xn-chron\">December 31, 2020<\/span>, and up <span class=\"xn-money\">$183.5 million<\/span> from <span class=\"xn-chron\">June 30, 2020<\/span>. Noninterest-bearing demand deposits comprised 32.1% of the Bank&#8217;s total core deposits at <span class=\"xn-chron\">June 30, 2021<\/span>, compared to 31.2% and 31.4% at <span class=\"xn-chron\">December 31<\/span> and <span class=\"xn-chron\">June 30, 2020<\/span>, respectively.<\/p>\n<p>\n        <b>Asset Quality<br \/><\/b>Nonperforming assets at <span class=\"xn-chron\">June 30, 2021<\/span>, totaled <span class=\"xn-money\">$12.6 million<\/span>, down from <span class=\"xn-money\">$14.0 million<\/span> and <span class=\"xn-money\">$25.0 million<\/span> at the end of the fourth and second quarters of 2020, respectively. Nonperforming assets to total assets ending the second quarter of 2021 at 0.45%, down from 0.52% and 0.94% at the end of the fourth and second quarters of 2020, respectively. <\/p>\n<p>\n        <b>Capital Position<br \/><\/b>Stockholders&#8217; equity totaled <span class=\"xn-money\">$311.4 million<\/span> at <span class=\"xn-chron\">June 30, 2021<\/span>, an increase of <span class=\"xn-money\">$16.6 million<\/span> from the end of 2020 and <span class=\"xn-money\">$35.3 million<\/span> from <span class=\"xn-chron\">June 30, 2020<\/span>. Strong earnings served to increase capital while being offset by dividends totaling <span class=\"xn-money\">$3.2 million<\/span> during the first half of 2021 and <span class=\"xn-money\">$6.4 million<\/span> during the trailing twelve months. Further reducing capital was <span class=\"xn-money\">$2.9 million<\/span> used to repurchase 40,000 shares of common stock during the second quarter of 2021. Tangible book value per share of Bank First&#8217;s common stock experienced an annualized increase of 16.2% during the second quarter of 2021 and an increase during the trailing twelve months of 17.8%.<\/p>\n<p>\n        <b>Dividend Declaration<br \/><\/b>Bank First&#8217;s Board of Directors approved both a quarterly cash dividend of <span class=\"xn-money\">$0.21<\/span> per common share and a special one-time cash dividend of <span class=\"xn-money\">$0.29<\/span> per common share. These dividends will be payable on <span class=\"xn-chron\">October 6, 2021<\/span>, to shareholders of record as of <span class=\"xn-chron\">September 22, 2021<\/span>. The special dividend was declared in response to record earnings in recent quarters which has resulted in a declining dividend payout ratio. The one-time nature of this dividend allows for flexibility moving forward if capital is required for other strategic initiatives of Bank First.<\/p>\n<p>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 banking locations in <span class=\"xn-location\">Wisconsin<\/span>. The Bank has grown through both acquisitions and de novo branch expansion. The Bank offers loan, deposit and treasury management products at each of its banking offices. Insurance services are available through our bond with Ansay &amp; Associates, LLC. Trust, investment advisory and other financial services are offered through the Bank&#8217;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 a data processing subsidiary, UFS, LLC, which provides data and technology services to banks in the Midwest. The Company employs approximately 302 full-time equivalent staff and has assets of approximately <span class=\"xn-money\">$2.8 billion<\/span>. Further information about Bank First Corporation is available by clicking on the Investor Relations tab at <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3234555-1&amp;h=750625950&amp;u=http%3A%2F%2Fwww.bankfirstwi.bank%2F&amp;a=www.BankFirstWI.bank\" rel=\"nofollow noopener\">www.BankFirstWI.bank<\/a>.<\/p>\n<p>\n        <b>For further information, contact:<br \/><\/b>Kevin M LeMahieu, Chief Financial Officer<br \/>Phone: (920) 652-3200 \/\u00a0<a target=\"_blank\" href=\"mailto:klemahieu@bankfirstwi.bank\" rel=\"nofollow noopener\">klemahieu@bankfirstwi.bank<\/a><\/p>\n<p id=\"PURL\">\n        <img loading=\"lazy\" decoding=\"async\" title=\"Cision\" width=\"12\" height=\"12\" alt=\"Cision\" src=\"https:\/\/c212.net\/c\/img\/favicon.png?sn=CG49842&amp;sd=2021-07-20\" \/> View original content:<a id=\"PRNURL\" rel=\"nofollow\" href=\"https:\/\/www.prnewswire.com\/news-releases\/bank-first-announces-net-income-for-the-second-quarter-of-2021-301337998.html\">https:\/\/www.prnewswire.com\/news-releases\/bank-first-announces-net-income-for-the-second-quarter-of-2021-301337998.html<\/a><\/p>\n<p>SOURCE  Bank First Corporation<\/p>\n<\/p><\/div>\n<p>    <img decoding=\"async\" alt=\"\" src=\"https:\/\/rt.prnewswire.com\/rt.gif?NewsItemId=CG49842&amp;Transmission_Id=202107201850PR_NEWS_USPR_____CG49842&amp;DateId=20210720\" style=\"border:0px;width:1px;height:1px\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8211; Net income of $11.5 and $23.1 million for the three and six months ended June 30, 2021 &#8211; Earnings per common share of $1.50 and $2.99 for the three and six months ended June 30, 2021 &#8211; Annualized return on average assets of 1.65% for the six months ended June 30, 2021, compared to 1.32% for the first half of 2020 &#8211; Quarterly cash dividend of $0.21 per share and special one-time cash dividend of $0.29 per share declared PR Newswire MANITOWOC, Wis., July 20, 2021 \/PRNewswire\/ &#8212; Bank First Corporation (NASDAQ: BFC) (&#8220;Bank First&#8221; or the &#8220;Bank&#8221;), the holding company for Bank First, N.A., reported net income of $11.5 million, or $1.50 per share, for the second quarter &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.marketnewsdesk.com\/index.php\/bank-first-announces-net-income-for-the-second-quarter-of-2021\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Bank First Announces Net Income for the Second Quarter of 2021&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-515429","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - 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