MANITOWOC, Wis., April 17, 2018 /PRNewswire/ -- Bank First National Corporation (OTC-PINK: BFNC), the holding company for Bank First, reported net income for the first quarter of 2018 of $7.06 million, or $1.05 per share, as compared to $3.99 million, or $0.64 per share, for the first quarter of 2017, representing a 64% year-over-year increase in earnings per share.
Net interest income after provision for loan losses was $15.80 million for the quarter ended March 31, 2018, compared to $9.64 million for the prior year quarter, also representing a 64% increase year-over-year. The increase in net interest margin was a result of 34% loan growth year-over-year, along with 31% core deposit growth, both largely attributable to the acquisition of Waupaca Bancorporation, Inc. during the fourth quarter of 2017. Demand deposits, a low-cost source of funding, has remained a significant portion of core deposits, comprising 27% of total deposits at March 31, 2018.
Noninterest income was $3.45 million for the quarter ended March 31, 2018, compared to $2.73 million for the prior year quarter. This increase is partially the result of higher service charge revenue caused by the increased scale of adding six branches year-over-year. Noninterest income was further enhanced by an increase in revenues contributed by the bank's investments in UFS, LLC and Ansay & Associates, LLC.
Noninterest expense was $9.98 million for the first quarter of 2018, up from $6.35 million for the first quarter of 2017. Salary expense increased $1.57 million, or 42%, year-over-year, due to the increased staffing required by adding six branches. Occupancy costs increased $0.52 million, or 63% year-over-year, partially due to the six added branches and partially due to the opening of the bank's new Plymouth branch during the most recent quarter. Data processing costs increased $0.33 million, or 53%, year-over-year. A primary driver of data processing costs is the total number of the bank's customer accounts, which increased significantly. The bank's efficiency ratio, a measure of how well resources are utilized by an institution, remained very strong at 50.1%.
Earnings for the quarter were also impacted by the corporation's reduced federal income tax rate as a result of the Tax Cuts and Jobs Act passed by Congress and signed into law during December 2017. This lower rate created a reduction in income taxes in excess of $0.90 million from what would have been owed under the previous rate structure.
"The first quarter has proven to be a great start for the year at Bank First," said Mike Molepske, Chief Executive Officer. "We have successfully integrated six new offices into our market footprint and have seen our deposit base in Waupaca and Barron Counties grow since completing our acquisition of Waupaca Bancorporation, Inc. last quarter. The savings in income taxes we are experiencing in 2018 has allowed us to reward our employees, increase our deposit rates, give generously to charitable organizations in our markets and continue our common stock repurchase plan."
Total assets were $1.70 billion at March 31, 2018, up 32% from $1.29 billion at March 31, 2017.
The corporation's board of directors approved a quarterly cash dividend of $0.16 per common share, payable on July 6, 2018, to shareholders of record as of June 29, 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 services for over 50 Midwest banks. The corporation employs approximately 244 full-time equivalent staff and has assets of $1.70 billion as of March 31, 2018. Further information about Bank First National Corporation is available by clicking on the Investor Relations tab at www.BankFirstNational.com.
P.O. Box 10
Manitowoc, WI 54221-0010
For further information, contact:
Kevin M LeMahieu, Chief Financial Officer
Phone: (920) 652-3200
SOURCE Bank First National Corporation