Bank First announces third quarter 2021 net income

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

Operating results
Net interest income (“NII”) for the third quarter of 2021 was $ 22.9 million, high $ 1.1 million compared to the previous quarter and corresponds to the third quarter of 2020. NII for the first nine months of 2021 was $ 66.9 million, away $ 62.4 million for the first nine months of 2020.

For the past 18 months, Bank First has been a very active participant in the Paycheck Protection Program (“PPP”), a Small Business Administration (“SBA”) loan program aimed at helping small businesses in the turbulent economic environment that is being brought about by the COVID-19 has arisen pandemic (“COVID”). Bank First was created over $ 381.3 million for loans to new and existing customers under this program, $ 62.6 million of which remained unpaid and unforgiven September 30, 2021. The issuance fees levied from the granting of PPP loans totaled over $ 14.6 million. Under accounting rules, the bank records these charges as a surcharge to NII over the term of the loan in question, with any remaining charges recorded in full in NII if the loan is repaid or waived before the original due date. As with any institution involved in PPP lending, this accounting treatment has resulted in significant fluctuations in the bank’s NII and interest margins from quarter to quarter based on how many PPP loans were issued during the reporting period. Sum of unrecognized PPP procurement fees $ 2.2 million at September 30, 2021, compared to $ 2.6 million and $ 5.8 million at December 31 and September 30, 2020, respectively.

NII related to bookkeeping bookings resulting from our acquisitions of other institutions in recent years increased net income (after tax) in the third quarter of 2021 $ 0.2 million, or $ 0.03 per share, compared to $ 1.1 million, or $ 0.15 per share, for the third quarter of 2020. In the first nine months of 2021 and 2020, the effects of these postings in the purchase accounting increased the net income (after tax) by $ 0.9 million, or $ 0.12 per share and $ 2.5 million, or $ 0.34 per share or

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 above postings in Purchasing Accounting increased the NIM by 0.04% and 0.04%, respectively, for each of these periods 0.26%. The NIM was 3.47% for the first nine months of 2021, including 0.07% due to the impact of bookings in Purchasing Accounting, compared to 3.77%, including 0.21% due to the impact of bookings in of purchasing accounting, in the first nine months of 2020.

Bank First has a loan loss provision of $ 0.7 million in the third quarter of 2021 compared to $ 1.4 million in the third quarter of 2020. The provision expense was $ 2.5 million for the first nine months of 2021 compared to $ 5.5 million for the same period in 2020. While provision spending increased in 2020 in response to and the company’s response to the uncertainty caused by COVID, actual asset quality metrics remained in the first three quarters of 2021, as detailed later in this press release explained, strong and made it possible to reduce the provision expense in 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. Income from incidental expenses continues to develop strongly in 2021 and shows an increase of over eleven percent in the third quarter of 2021 compared to the third quarter of 2020, as the bank gained additional markets through three acquisitions in the last four years has continued to fully integrate into the branch network. All other components of non-interest income were very well comparable in the third quarters compared to the previous year. While secondary market mortgage loan sales were similar in profit in the third quarters of last year, we found that our profitability on those loan sales declined from historic highs in the last three final quarters. While origination volume remained high, the average profit margin on each sale has decreased as the industry has become more competitive on pricing.

Interest-independent expense was $ 12.5 million in the third quarter of 2021 compared to $ 12.2 million in the previous quarter and in the third quarter of 2020. Data processing costs decreased $ 0.1 million and $ 0.2 million compared to the previous quarter or the third quarter of the previous year, mainly due to lower expenses due to the substantial issuance of PPP loans, which start in the second quarter of 2020 and end in the second quarter of 2021. Other non-interest-related expenses increased by 23.5% compared to the previous year and 27.3% compared to the third quarter of the previous year, mainly due to several other one-off, insignificant expense items that were added together to form larger deviations.

Balance sheet
The balance sheet total was $ 2.85 billion at September 30, 2021, a $ 128.6 million of increase December 31, 2020, and up $ 207.4 million from September 30, 2020. The total loans were $ 2.21 billion at September 30, 2021, high $ 17.5 million from December 31, 2020, and up $ 15.7 million from September 30, 2020. Excluding PPP grants and repayments or waivers, loans grew 12.3% over the past twelve months. Annualized credit growth for the third quarter of 2021, also excluding PPP activity, was 8.8%. The total deposits, almost all of which remain core deposits, amounted to $ 2.47 billion at September 30, 2021, high $ 151.3 million from December 31, 2020, and up $ 201.2 million from September 30, 2020. The interest-free sight deposits made up 32.1% of the bank’s total core deposits September 30, 2021, compared with 31.2% and 30.4% at December 31 and September 30, 2020, or time deposits, which typically carry the highest interest rates of all deposit products, made up 10.5% of the bank’s total core deposits September 30, 2021, compared with 14.8% and 16.8% at December 31 and September 30, 2020.

Asset quality
Distressed assets too September 30, 2021 summed up $ 12.1 million, down from $ 14.0 million and $ 20.8 million End of the fourth and third quarters of 2020. Non-performing assets in relation to total assets ended in the third quarter of 2021 at 0.42% compared to 0.52% and 0.79% at the end of the fourth and third quarters of 2020, respectively Assets too September 30, 2021, refer to a commercial real estate loan in the amount of $ 7.1 million which was moved to non-accrual status while June 2020. While payments on this loan have remained timely, its non-accrual status due to the loss of a significant tenant in the underlying commercial property has been deemed cautious by management.

Capital position
Equity amounts to $ 315.3 million at September 30, 2021, An increase from $ 20.4 million from the end of 2020 and $ 29.2 million from September 30, 2020. Strong income served the capital increase, while dividends totaled $ 7.1 million until the first three quarters of 2021 and $ 8.7 million during the past twelve months. Another capital decrease was $ 6.1 million used to repurchase 87,319 common shares in the first three quarters of 2021. The tangible book value per common share of Bank First increased 14.8% over the past twelve months.

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

Bank First Corporation provides financial services through its subsidiary, Bank First, founded in 1894. The bank is an independent community bank with 21 banking locations in Wisconsin. The bank has grown through both acquisitions and de novo branch expansions. The company employs around 302 full-time equivalents and has assets of approx. $ 2.8 billion. Bank First offers credit, deposit and treasury management products in each of its bank branches. Insurance services are available through our connection with Ansay & Associates, LLC. Fiduciary, investment advice and other financial services are offered through the bank’s partnership with Legacy Private Trust, an alliance with Morgan Stanley, and an alliance with McKenzie Financial Services, LLC. The bank is a co-owner of banking technology provider UFS, LLC, which provides digital, core, cybersecurity, managed IT and cloud services. Further information on Bank First Corporation can be found under the Investor Relations tab at www.BankFirstWI.bank.

Forward-Looking Statements: This press release may contain certain “forward-looking statements” that reflect Bank First Corporation’s expectations or beliefs about future events. Such forward-looking statements address matters that 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 contained in this press release or from time to time elsewhere by Bank First Corporation or in its Names are given. Bank First Corporation disclaims any obligation to update such forward-looking statements. Beyond that, statements on the historical development of the share price are no indication of or guarantees for the future development of the share price.

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

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