Bank First reports 41% increase in quarterly earnings, declares per share cash dividend of $0.16
MANITOWOC, Wis., July 18, 2018 /PRNewswire/ -- Bank First National Corporation (OTC-PINK: BFNC), the holding company for Bank First, reported net income for the second quarter of 2018 of $6.40 million, or $0.96 per share, as compared to $4.21 million, or $0.68 per share, for the second quarter of 2017, representing a 41% year-over-year increase in earnings per share.
Net interest income was $15.77 million for the quarter ended June 30, 2018, compared to $10.13 million for the prior year quarter, representing a 56% increase year-over-year. The increase in net interest income was primarily driven by a 33% increase in loans year-over-year largely attributable to Bank First's acquisition of Waupaca Bancorporation, Inc. during the fourth quarter of 2017. Deposits increased by 30% over this same period. Demand deposit balances, a low-cost source of funding, continue to be a major component of core deposits, comprising 27% of the total balance at June 30, 2018.
Noninterest income was $2.97 million for the quarter ended June 30, 2018, matching the prior year quarter. Fee income totaled $0.78 million for the quarter, increasing by 25% compared to the prior year quarter. A slow-down in gains on sales of secondary market loans was more than offset by an increase in loan servicing income, showing a net increase of 5% year-over-year. Revenues contributed by the Bank's investments in Ansay & Associates, LLC and UFS, LLC both lagged their contribution in the prior year second quarter, however, they are up 9% and 5%, respectively, on a year-to-date basis. The Bank did incur losses during the quarter on sales of securities as a result of investment repositioning to even out expected cash flows, all of which resulted in higher yields-to-maturity for the reinvested funds.
Noninterest expense was $10.01 million for the second quarter of 2018, up from $6.64 million for the second quarter of 2017. The acquisition of Waupaca Bancorporation, Inc., adding nearly 32% to the scale of the Bank's operations, impacts nearly all year-over-year comparisons in noninterest expense. Noninterest expense as a percentage of total gross revenue saw only a slight increase from 44.5% in the second quarter of 2017 to 44.8% during the second quarter of 2018, indicating that the Bank continues to run very efficiently. The Corporation's efficiency ratio, a measure of how well resources are utilized by an institution, remained very strong at 50.0%.
"We are very pleased with the reception we have received in our new markets during the eight months following our acquisition of Waupaca Bancorporation, Inc.," said Mike Molepske, Chief Executive Officer. "While we continue to work our way through the asset quality issues that existed in the acquired loan portfolio, we have seen solid and consistent growth in deposit share in these new markets. As we have done in the past and continue to do in our legacy offices, we will partner with and invest in these new markets to enhance the communities we serve."
The Corporation's Board of Directors approved a quarterly cash dividend of $0.16 per common share, matching the dividend declared one year earlier. The dividend is payable on October 5, 2018, to shareholders of record as of September 21, 2018.
Bank First National Corporation (BFNC) provides financial services through its subsidiary, Bank First National, which was incorporated in 1894. The Bank is an independent community bank with 18 banking locations in Manitowoc, Brown, Sheboygan, Outagamie, Winnebago, Waupaca and Barron counties. 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 & Associates, LLC. Trust, investment advisory and other financial services are offered through the Bank's partnership with Legacy Private Trust, an alliance with Morgan Stanley and an affiliation with McKenzie Financial Services, LLC. The Bank is a co-member of a data processing subsidiary, UFS, LLC, which provides data and technology services for over 50 Midwest banks. The Company employs approximately 248 full-time equivalent staff and has assets of $1.74 billion as of June 30, 2018. Further information about Bank First National Corporation is available by clicking on the Investor Relations tab at www.BankFirstNational.com.
Forward Looking Statements: This news release may contain certain "forward-looking statements" that represent Bank First National Corporation's expectations or beliefs concerning future events. Such forward-looking statements are about matters that are inherently subject to risks and uncertainties. Because of the risks and uncertainties inherent in forward looking statements, readers are cautioned not to place undue reliance on them, whether included in this news release or made elsewhere from time to time by Bank First National Corporation or on its behalf. Bank First National Corporation disclaims any obligation to update such forward-looking statements. In addition, statements regarding historical stock price performance are not indicative of or guarantees of future price performance.
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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