- Net income of $16.6 million
and $48.0 million for the three and
nine months ended September 30, 2024,
respectively
- Earnings per common share of $1.65 and $4.75 for
the three and nine months ended September
30, 2024, respectively
- Annualized return on average assets of 1.56% and 1.54% for
the three and nine months ended September
30, 2024, respectively
- Quarterly cash dividend of $0.45 per share declared, an increase of 12.5%
from the prior quarter and 50.0% from the prior-year third
quarter
MANITOWOC, Wis., Oct. 15,
2024 /PRNewswire/ -- Bank First Corporation (NASDAQ:
BFC) ("Bank First" or the "Bank"), the holding company for Bank
First, N.A., reported net income of $16.6
million, or $1.65 per share,
for the third quarter of 2024, compared with net income of
$14.8 million, or $1.43 per share, for the prior-year third
quarter. For the nine months ended September
30, 2024, Bank First earned $48.0
million, or $4.75 per share,
compared to $39.6 million, or
$3.89 per share for the same period
in 2023. 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 ("OREO"), the Bank reported adjusted net
income (non-GAAP) of $15.1 million,
or $1.46 per share, for the third
quarter of 2023. There were no such expenses during the third
quarter of 2024. For the first nine months of 2024, adjusted net
income (non-GAAP) totaled $47.4
million, or $4.69 per share,
compared to $44.4 million, or
$4.36 per share for the same period
in 2023.
Operating Results
Net interest income ("NII") during the third quarter of 2024 was
$35.9 million, $2.9 million higher than the previous quarter and
up $1.8 million from the third
quarter of 2023. The impact of net accretion and amortization of
purchase accounting related to interest-bearing assets and
liabilities from past acquisitions ("purchase accounting")
increased NII by $1.7 million, or
$0.13 per share after tax, during the
third quarter of 2024, compared to $1.2
million, or $0.09 per share
after tax, during the previous quarter and $1.8 million, or $0.13 per share after tax, during the third
quarter of 2023. A previously purchased loan with remaining
associated purchase accounting adjustments of $0.6 million was fully repaid before maturity
during the third quarter of 2024, leading to the elevated impact of
purchase accounting during the quarter.
Net interest margin ("NIM") was 3.76% for the third quarter of
2024, compared to 3.63% for the previous quarter and 3.71% for the
third quarter of 2023. NII from purchase accounting increased NIM
by 0.17%, 0.13%, and 0.19% for each period, respectively. While the
Bank continued to see average rates paid on interest-bearing
deposits rise, the velocity of those increases slowed during the
most recent quarter, with month-by-month results showing these
rates at 2.66% in July, 2.71% in August, and 2.70% in September.
Meanwhile, new loan originations and loan repricing from low rates
over the last several years have allowed for continued improvement
in the yield of the Bank's loan portfolio, coming in at 5.73%
during the most recent quarter compared to 5.51% during the prior
quarter and 5.23% during the prior-year third quarter.
Bank First did not record a provision for credit losses during
the third quarter of 2024, matching the previous quarter and third
quarter of 2023. Provision expense was $0.2
million for the first nine months of 2024 compared to
$4.2 million for the same period
during 2023. 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. Recoveries of
previously charged-off loans exceeded currently charged-off loans
by $0.5 million through the first
nine months of 2024, compared to recoveries exceeding charge-offs
by $0.1 million through the first
nine months of 2023. Other than a $0.3
million charge-off during the third quarter of 2024, related
to a single customer relationship, the Bank's loan portfolio
continues to exhibit very little credit stress. The Bank
experienced a reduction in unfunded loan commitments during the
most recent quarter, allowing it to move $0.4 million from its liability for potential
credit losses in unfunded commitments to its allowance for credit
losses in its loan portfolio. While this move did not impact on the
Bank's profitability for the quarter, it did increase the allowance
for potential loan credit losses to correspond with the increase in
overall loan portfolio balances during the quarter.
Noninterest income was $4.9
million for the third quarter of 2024, compared to
$5.9 million and $5.3 million for the prior quarter and third
quarter of 2023, respectively. Service charge income increased by
$0.1 million, or 4.2%, and
$0.4 million, or 20.2%, from the
prior quarter and prior-year third quarter, respectively, as the
Bank continues to benefit from the renegotiation of vendor
incentive programs related to the Bank's credit and debit card
payments processing. Income provided by the Bank's investment in
Ansay & Associates, LLC ("Ansay") increased by $0.3 million from the prior-year third quarter
while declining $0.3 million from the
prior quarter. Although income from Ansay has historically been
less consistent than most areas of the Bank quarter-to-quarter, it
has remained strong during 2024, increasing by $0.6 million, or 21.6%, through the first nine
months of 2024 compared to the same period in 2023. Finally, the
Bank experienced a negative $0.3
million valuation adjustment to its mortgage servicing
rights asset during the third quarter of 2024 which compared
unfavorably to positive valuation adjustments of $0.3 million and $0.2
million during the prior quarter and prior-year third
quarter, respectively. Changes in the valuation of this asset
historically correlate to changes in prevailing residential
mortgage rates. Residential mortgage rates have ebbed and flowed
during 2024, causing the valuation of this asset to be volatile
through the first three quarters of the year.
Noninterest expense was $20.1
million for the third quarter of 2024, compared to
$19.1 million during the prior
quarter and $19.6 million during the
third quarter of 2023. Most areas of noninterest expense have
remained well-contained over the past five quarters as the Bank has
worked efficiencies from recent acquisitions into its operations.
The prior quarter included a $0.5
million gain on the sale of OREO which offset total
noninterest expense, leading to some of the increase
quarter-over-quarter. Beyond that, occupancy, equipment, and office
expenses were elevated during the current quarter due to
$0.2 million in losses on the
disposal of equipment that needed to be upgraded. Finally, data
processing contained $0.4 million in
project-related expenses during the current quarter as part of the
Bank's continued upgrade of its online customer platform.
Balance Sheet
Total assets were $4.29 billion on
September 30, 2024, a $72.7 million increase from December 31, 2023, and a $207.0 million increase from September 30, 2023.
Total loans were $3.47 billion on
September 30, 2024, up $127.9 million from December 31, 2023, and up $115.4 million from September 30, 2023. Loans grew 4.9% on an
annualized basis during the third quarter of 2024.
Total deposits, nearly all of which remain core deposits, were
$3.48 billion on September 30, 2024, up $51.8 million from December 31, 2023, and up $86.4 million from September 30, 2023. Total deposits grew by 10.0%
and noninterest-bearing deposits grew by 18.8% on an annualized
basis during the third quarter of 2024.
Asset Quality
Nonperforming assets on September 30,
2024, remained negligible, totaling $11.9 million compared to $11.0 million and $5.2
million at the end of the prior quarter and third quarter of
2023, respectively. Nonperforming assets to total assets ended the
third quarter of 2024 at 0.28%.
Capital Position
Stockholders' equity totaled $628.9
million on September 30, 2024,
an increase of $9.1 million from the
end of 2023 and $51.6 million from
September 30, 2023. Earnings of
$48.0 million through the first nine
months of 2024, offset by dividends totaling $11.1 million and repurchases of BFC common stock
totaling $31.2 million during that
period, were the primary factors leading to the increase in capital
year-to-date. The Bank's book value per common share totaled
$62.82 on September 30, 2024, compared to $59.80 on December 31,
2023, and $55.62 on
September 30, 2023. Tangible book
value per common share (non-GAAP) totaled $43.07 on September 30,
2024 ,compared to $40.30 on
December 31, 2023, and $36.00 on September 30,
2023.
Dividend Declaration
Bank First's Board of Directors approved a quarterly cash
dividend of $0.45 per common share,
payable on January 6, 2025, to
shareholders of record as of December 23,
2024. This dividend represents a 12.5% increase over the
previous quarter's dividend and a 50.0% increase over the dividend
declared one year earlier.
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