Bank First Announces Net Income for the First Quarter of 2022

Rhea-AI Summary

Bank First Corporation reported a net income of $10.2 million or $1.34 per share for Q1 2022, down from $11.5 million or $1.49 per share in Q1 2021. The annualized return on average assets was 1.27% and return on common equity was 12.62%. A quarterly cash dividend of $0.22 was declared, up 4.8% year-over-year. Net interest income was $22.3 million, slightly down from the previous quarter, while total assets decreased to $2.92 billion. Nonperforming assets fell to $5.4 million, improving asset quality.

Positive

• Quarterly cash dividend declared at $0.22, a 4.8% increase year-over-year.
• Total loans increased by $81.2 million from previous quarter, showing strong growth.
• Nonperforming assets decreased to $5.4 million, indicating improved asset quality.

Negative

• Net income declined to $10.2 million from $11.5 million year-over-year.
• Net interest margin fell to 3.06%, down from 3.47% in the previous quarter.
• Provision for loan losses increased to $1.2 million from $0.6 million in the previous quarter.

• Net income of $10.2 million and earnings per common share of $1.34 for the three months ended March 31, 2022
• Annualized return on average assets of 1.27% for the three months ended March 31, 2022
• Annualized return on average common equity of 12.62% for the three months ended March 31, 2022
• Quarterly cash dividend of $0.22 per share declared, matching prior quarter and an increase of 4.8% from prior-year first quarter

MANITOWOC, Wis., April 19, 2022 /PRNewswire/ -- Bank First Corporation (NASDAQ: BFC) ("Bank First" or the "Bank"), the holding company for Bank First, N.A., reported net income of $10.2 million, or $1.34 per share, for the first quarter of 2022, compared with net income of $11.5 million, or $1.49 per share, for the prior-year first quarter.

Operating Results

Net interest income during the first quarter of 2022 was $22.3 million, down $0.9 million from the previous quarter but up $0.2 million from the first quarter of 2021. Interest income on loans originated through the Small Business Administration's Paycheck Protection Program ("PPP") totaled $0.7 million during the first quarter of 2022, compared to $1.3 million during the previous quarter and $2.4 million during the first quarter of 2021.

During the first quarter of 2022 the Bank engaged in a strategy to enhance net interest income, utilizing $300.0 million in short-term borrowings from the Federal Home Loan Bank and investing these funds in short-term, liquid, interest-earning assets. This strategy increased net interest income during the quarter by $0.1 million.

Interest income related to purchase accounting entries, resulting from our acquisitions of other institutions over the last several years, increased net interest income during the first quarter of 2022 by $0.3 million, or $0.03 per share after tax, compared to $0.7 million and $0.5 million, or $0.07 and $0.05 per share after tax, for the fourth and first quarters of 2021, respectively.

Excluding income from PPP loans and the impact of purchase accounting entries, net interest income increased $2.1 million in the first quarter year-over-year. Excluding income from PPP loans, the impact of purchase accounting entries, and the impact of two fewer earning days in the current quarter, net interest income increased $0.6 million quarter-over-quarter.

Net interest margin was 3.06% for the first quarter of 2022, compared to 3.47% for the previous quarter and 3.57% for the first quarter of 2021. The aforementioned short-term net interest income enhancement strategy decreased net interest margin by 0.29% during the quarter. Purchase loan accounting entries added 0.04%, 0.11% and 0.09% to net interest margin for each of these periods, respectively.

Bank First recorded a provision for loan losses of $1.2 million during the first quarter of 2022, compared to $0.6 million and $0.9 million during the fourth and first quarters of 2021, respectively. Significant first quarter loan growth, as discussed later in this release, led to the need for a higher provision for loan losses. Through the first three months of 2022, recoveries of previously charged-off loans exceeded current charge-offs by $0.2 million. This compared favorably to negligible net charge-offs during the first three months of 2021.

Noninterest income was $5.2 million during the first quarter of 2022, compared to $5.5 million and $6.3 million during the fourth and first quarters of 2021, respectively. Income from our investment in Ansay & Associates LLC increased $0.4 million from the prior quarter, and $0.1 million from the prior-year first quarter. A slowdown in residential mortgage lending, experienced across the banking industry, led to a decline in gains on sales of mortgage loans to the secondary market of $0.5 million from the prior quarter, and $2.1 million from the prior-year first quarter. Finally, gains on sales of other real estate owned during the quarter totaled $0.2 million, comparing favorably to losses of $0.2 million in the prior quarter and gains of $0.1 million in the prior-year first quarter. The Bank ended the first quarter of 2022 with no other real estate property owned.

Noninterest expense was $12.7 million in the first quarter of 2022, compared to $13.4 million and $12.4 million during the fourth and first quarters of 2021, respectively. Personnel expense totaled $7.2 million for the first quarter of 2022, compared to $7.3 million and $7.1 million for the fourth and first quarters of 2021, respectively. Outside service fees totaled $1.2 million in the first quarter of 2022, compared to $0.8 million for the fourth and first quarters of 2021. Outside service fees included $0.5 million in expenses related to the pending acquisition of Denmark Bancshares, Inc. Finally, other noninterest expense during the first quarter of 2022 declined by $1.1 million from the prior quarter. During the fourth quarter of 2021, Bank First incurred a one-time expense when it purchased a domain name from another institution for $0.8 million as part of a rebranding initiative. No similar expense was incurred during the current quarter, leading to the positive variance quarter-over-quarter.

Balance Sheet

Total assets were $2.92 billion at March 31, 2022, a $12.6 million decrease from December 31, 2021, but up $78.7 million from March 31, 2021. Total loans were $2.32 billion at March 31, 2022, up $81.2 million from December 31, 2021, and up $87.8 million from March 31, 2021. Excluding PPP originations and repayments or forgiveness, loans grew by 12.7% over the trailing twelve months. Annualized loan growth during the first quarter of 2022 net of these same items amounted to 17.6%. Total deposits, nearly all of which remain core deposits, were $2.56 billion at March 31, 2022, up $28.7 million from December 31, 2021, and up $109.1 million from March 31, 2021. Noninterest-bearing demand deposits comprised 31.4% of the Bank's total core deposits at March 31, 2022.

Asset Quality

Nonperforming assets at March 31, 2022, totaled $5.4 million, down from $8.2 million and $14.7 million at the end of the fourth and first quarters of 2021, respectively. Nonperforming assets to total assets ended the first quarter of 2022 at 0.19%, down from 0.28% at the end of the prior quarter and down from 0.52% from the end of the prior-year first quarter.

Capital Position

Stockholders' equity totaled $318.3 million at March 31, 2022, a decrease of $4.4 million from the previous quarter but an increase of $14.9 million from March 31, 2021. Interest rate movements during the current quarter significantly impacted the value of investments in the Bank's available-for-sale investment portfolio, creating a loss in other comprehensive income which reduced stockholders equity by $8.2 million. Dividends totaling $1.7 million and share repurchases totaling $5.0 million further reduced capital. Strong earnings served to partially offset these items, increasing capital by $10.2 million.

Dividend Declaration

Bank First's Board of Directors approved a quarterly cash dividend of $0.22 per common share, payable on July 6, 2022, to shareholders of record as of June 22, 2022.

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

FAQ

What was Bank First Corporation's net income for Q1 2022?

Bank First Corporation reported a net income of $10.2 million for Q1 2022.

How much was the dividend declared by Bank First Corporation?

Bank First Corporation declared a quarterly cash dividend of $0.22 per share.

What is the stock symbol for Bank First Corporation?

The stock symbol for Bank First Corporation is BFC.

What was the total assets of Bank First Corporation as of March 31, 2022?

As of March 31, 2022, Bank First Corporation had total assets of $2.92 billion.

How did nonperforming assets change at Bank First Corporation in Q1 2022?

Nonperforming assets decreased to $5.4 million in Q1 2022, down from $8.2 million in the previous quarter.