Bank First reports 13% increase in quarterly earnings, declares per share cash dividend of $0.16
MANITOWOC, Wis., July 19, 2017 /PRNewswire/ -- Bank First National Corporation (BFNC) reported net income for the second quarter of 2017 of $4.21 million, or $0.68 per share, as compared to $3.76 million, or $0.60 per share, for the second quarter of 2016, representing a 13% year-over-year increase.
Net interest income was $10.13 million for the quarter ended June 30, 2017, compared to $9.59 million for the prior year quarter, representing a 6% increase year-over-year. The increase in net interest margin was a result of 7% loan growth year-over-year, funded by a near matching 8% increase in core deposits. Demand deposit balances, a low-cost source of funding, continue to be a major component of core deposits, comprising 29% of the total balance at June 30, 2017.
Noninterest income was $2.97 million for the quarter ended June 30, 2017, compared to $2.17 million in the prior year quarter. Revenues contributed by the Bank's investment in UFS, LLC, continued to show strong performance in 2017, increasing $0.26 million during the second quarter of 2017 compared to the prior year quarter. The Bank also saw a strong quarter in income from our serviced secondary market loan portfolio, with revenues increasing by $0.24 million compared to the prior year quarter.
Noninterest expense was $6.64 million for the second quarter of 2017, up from $6.10 million for the second quarter of 2016. Noninterest expense as a percentage of total gross revenue declined from 45.9% in the second quarter of 2016 to 44.5% during the second quarter of 2017, indicating that the Bank continues to run very efficiently. Salary expense increased $0.51 million, or 17%, year-over-year as the Bank continued to invest in personnel to support growth in customer relationships and product offerings. The Corporation's efficiency ratio, a measure of how well resources are utilized by an institution, remained very strong at 49.4%.
"We followed up the most profitable quarter in the Bank's history during the first quarter of 2017 with an even stronger second quarter," said Mike Molepske, Chief Executive Officer. "This strong performance through the first half of 2017 positions us well for the integration of operations in our new markets as a result of our planned acquisition of Waupaca Bancorporation, Inc. in the second half of 2017."
Total assets were $1.31 billion at June 30, 2017, up slightly from $1.30 billion at June 30, 2016. Total assets at June 30, 2016, included $100 million in borrowed funds invested in federal funds sold and interest-bearing deposits. The Bank did not have a similar borrowing at June 30, 2017. Without this borrowing included in the prior year quarter balances, asset growth was 8.7% year-over-year.
"The Bank continues to see consistent growth in both new and existing customer relationships," stated Molepske. "This growth has occurred while maintaining very strong asset quality as displayed by our 0.20% ratio of non-performing assets to total assets."
The Corporation's Board of Directors approved a quarterly cash dividend of $0.16 per common share, representing an increase of 6.7% from the dividend declared one year earlier. The dividend is payable on October 3, 2017, to shareholders of record as of September 26, 2017.
For further information, contact:
Kevin M LeMahieu, Chief Financial Officer
Phone: (920) 652-3200
[email protected]
SOURCE Bank First National Corporation
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