Bank First (BFC) 8-K Bank First Announces Net Income for the Second Quarter of 2019

Exhibit 99.1

NEWS
release  

 P.O. Box 10, Manitowoc, WI 54221-0010

For further information, contact:

Kevin M LeMahieu, Chief Financial Officer

Phone: (920) 652-3200 / klemahieu@bankfirstwi.bank

FOR IMMEDIATE RELEASE

Bank First Announces Net Income for the Second Quarter of 2019

· Net income of $6.0 and $12.6 million for the three and six months ended June 30, 2019

· Earnings per common share of $0.91 and $1.91 for the three and six months ended June 30, 2019

· Annualized return on average assets of 1.33% and 1.41% for the three and six months ended June 30, 2019

· Quarterly cash dividend of $0.20 per share declared, matching prior quarter and up 25% from the prior-year quarter

MANITOWOC, Wis, July 18, 2019 -- Bank First Corporation (NASDAQ:BFC) (“Bank First”), the holding company for Bank First, N.A., reported net income of $6.0 million, or $0.91 per share, for the second quarter of 2019, compared with net income of $6.4 million, or $0.96 per share, for the respective prior-year period. For the six months ended June 30, 2019, Bank First earned $12.6 million, or $1.91 per share, compared to $13.5 million, or $2.01 per share for the same period in 2018.

Operating Results

Net interest income during the second quarter of 2019 was $15.4 million, up $0.2 million from the previous quarter and down $0.4 million from the second quarter of 2018. Net interest income for the first six months of 2019 was $30.6 million, down from $32.1 million for the first six months of 2018.

Interest income related to purchased loan accounting entries, resulting from our purchase of Waupaca Bancorporation, Inc. (“Waupaca”) during the fourth quarter of 2017, increased net income (after tax) during the second quarter of 2019 by $0.7 million, or $0.10 per share, compared to $1.2 million, or $0.18 per share, for the second quarter of 2018. For the first six months of 2019 and 2018 the impact of these purchase loan accounting entries increased net income (after tax) by $1.4 million, or $0.21 per share, and $2.7 million, or $0.40 per share, respectively.

Net interest margin was 3.76% for the second quarter of 2019, compared to 3.86% for the second quarter of 2018. The aforementioned purchase loan accounting entries added 0.21% and 0.39% to net interest margin for each of these periods, respectively. Net interest margin was 3.79% for the first six months of 2019, including 0.23% from the impact of purchase accounting entries, compared to 3.95%, including 0.44% from the impact of purchase accounting entries, for the first six months of 2018.

Bank First recorded a provision for loan losses of $0.5 million during the second quarter of 2019, compared to $0.9 million during the second quarter of 2018. Provision expense was $1.1 million for the first six months of 2019 compared to $1.4 million for the same period during 2018.

Noninterest income was $2.7 million during the second quarter of 2019, compared to $3.0 million during the second quarter of 2018. The largest change in noninterest income from the year-over-year second quarter comparison was in regard to loan servicing income. During the second quarter of 2018, Bank First experienced a $0.4 million increase in the valuation of our mortgage servicing rights related to loans that we sold on the secondary market. No similar upward valuation was warranted during the second quarter of 2019, leading to the negative year-over-year variance.

Noninterest expense was $9.9 million in the second quarter of 2019, compared to $10.1 million during the second quarter of 2018. Expenses related to Bank First’s acquisition of Partnership Community Bancshares, Inc., which closed on July 12, 2019, totaled $0.5 million during the second quarter of 2019. These acquisition related expenses were primarily in the areas of outside service fees and occupancy and equipment expenses. Outside of the impacts of the acquisition in these areas, noninterest expenses fell in line with expectations and longer-term trends.

Balance Sheet

Total assets were $1.81 billion at June 30, 2019, up $13.3 million from December 31, 2018, and up $64.6 million from June 30, 2018. Total loans were $1.42 billion at June 30, 2019, down $9.3 million from December 31, 2018, and $15.3 million from June 30, 2018. Continuing a trend of recent quarters, loan balances in markets acquired in the Waupaca transaction saw year-over-year contraction of $34.2 million, or approximately 13.3%. It is anticipated that we are nearing the end of contraction in the loan portfolios in these markets, and they should no longer be detrimental to overall loan growth in future quarters. Total deposits, nearly all of which remain core deposits, were $1.57 billion at June 30, 2019, up $17.8 million from December 31, 2018, and up $79.6 million from June 30, 2018. Deposit growth outpaced loan growth by $94.9 million over the trailing twelve-month period. Noninterest-bearing demand deposits increased $70.9 million year-over-year, comprising 30.6% of total deposits at June 30, 2019 compared to 27.4% one year earlier.

Asset Quality

Nonperforming assets at June 30, 2019 totaled $19.8 million, down from $23.3 million and $23.0 million at the end of the fourth and second quarters of 2018, respectively. Nonperforming assets to total assets ended the second quarter of 2019 at 1.10%, down from 1.30% and 1.32% at the end of the fourth and second quarter of 2018, respectively. Excluding relationships and foreclosed properties acquired in the Waupaca acquisition, Bank First’s nonperforming assets to total assets equaled 0.18% at June 30, 2019.

Capital Position

Stockholders’ equity totaled $185.4 million at June 30, 2019, an increase of $11.1 million from the end of 2018 and $20.2 million from June 30, 2018. Strong earnings served to increase capital while being offset by dividends totaling $5.0 million and repurchases of Bank First stock into treasury totaling $5.3 million during the trailing twelve months.

Dividend Declaration

Bank First’s Board of Directors approved a quarterly cash dividend of $0.20 per common share, payable on October 8, 2019, to shareholders of record as of September 24, 2019.

Bank First Corporation provides financial services through its subsidiary, Bank First, which was incorporated in 1894. The Bank is an independent community bank with 23 banking locations in Wisconsin. 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-owner of a data processing subsidiary, UFS, LLC, which provides data and technology services to banks in the Midwest. The Company employs approximately 279 full-time equivalent staff and has assets of approximately $2.1 billion. Further information about Bank First Corporation is available by clicking on the Investor Relations tab atwww.BankFirstWI.bank.

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Forward Looking Statements: This news release may contain certain “forward-looking statements” that represent Bank First 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 Corporation or on its behalf. Bank First 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.

Bank First Corporation

Consolidated Financial Summary (Unaudited)

	At or for the Three Months Ended															At or for the Six Months Ended
(In thousands, except per share data)	6/30/2019			3/31/2019			12/31/2018			9/30/2018			6/30/2018			6/30/2019			6/30/2018
Results of Operations:
Interest income	$	20,158		$	19,723		$	19,753		$	19,510		$	19,372		$	39,881		$	38,681
Interest expense		4,784			4,523			4,240			3,974			3,604			9,307			6,631
Net interest income		15,374			15,200			15,513			15,536			15,768			30,574			32,050
Provision for loan losses		500			625			750			800			900			1,125			1,385
Net interest income after provision for loan losses		14,874			14,575			14,763			14,736			14,868			29,449			30,665
Noninterest income		2,713			3,306			2,553			2,508			3,027			6,019			6,470
Noninterest expense		9,932			9,302			9,893			9,708			10,064			19,234			20,041
Income before income tax expense		7,655			8,579			7,423			7,536			7,831			16,234			17,094
Income tax expense		1,666			1,992			1,362			1,604			1,431			3,658			3,631
Net income	$	5,989		$	6,587		$	6,061		$	5,932		$	6,400		$	12,576		$	13,463
Earnings per common share - Basic	$	0.91		$	1.00		$	0.91		$	0.89		$	0.96		$	1.91		$	2.01
Earnings per common share - Diluted		0.90			1.00			0.91			0.89			0.96			1.89			2.01
Common Shares:
Basic weighted average		6,577,016			6,574,362			6,647,586			6,661,337			6,672,344			6,575,696			6,692,523
Diluted weighted average		6,675,794			6,608,273			6,647,586			6,661,337			6,672,344			6,642,222			6,692,523
Outstanding		6,576,171			6,577,045			6,610,358			6,659,021			6,662,292			6,576,171			6,662,292
Noninterest income / noninterest expense:
Service charges	$	799		$	679		$	890		$	971		$	786		$	1,478		$	1,632
Income from Ansay		543			875			180			176			562			1,418			1,758
Income from UFS		731			594			708			660			586			1,325			1,195
Loan servicing income		244			223			372			260			604			467			846
Net gain on sales of mortgage loans		154			87			188			144			128			241			285
Noninterest income from strategic alliances		29			19			22			24			21			48			44
Other noninterest income		213			829			193			273			340			1,042			710
Total noninterest income	$	2,713		$	3,306		$	2,553		$	2,508		$	3,027		$	6,019		$	6,470
Personnel expense	$	5,403		$	5,310		$	5,532		$	5,205		$	5,446		$	10,713		$	10,763
Occupancy, equipment and office		832			849			799			817			532			1,681			1,882
Data processing		960			913			899			856			925			1,873			1,864
Postage, stationery and supplies		192			123			156			138			159			315			326
Net (gain) loss on sales of other real estate owned		(135	)		36			(79	)		233			(38	)		(99	)		98
Net (gain) loss on sales of securities		(23	)		(234	)		-			(19	)		47			(257	)		44
Advertising		53			74			78			36			54			127			106
Charitable contributions		141			131			121			169			322			272			695
Outside service fees		982			684			899			817			896			1,666			1,416
Amortization of intangibles		161			161			189			189			189			322			378
Other noninterest expense		1,366			1,255			1,299			1,267			1,532			2,621			2,469
Total noninterest expense	$	9,932		$	9,302		$	9,893		$	9,708		$	10,064		$	19,234		$	20,041
Period-end balances:
Loans	$	1,419,192		$	1,432,094		$	1,428,494		$	1,441,477		$	1,434,504		$	1,419,192		$	1,434,504
Allowance for loan losses		12,170			12,213			12,248			11,560			13,047			12,170			13,047
Investment securities available-for-sale, at fair value		120,083			122,761			118,906			119,623			121,550			120,083			121,550
Investment securities held-to-maturity, at cost		39,537			40,769			40,768			40,882			41,203			39,537			41,203
Goodwill and other intangibles, net		19,998			20,160			20,321			20,425			20,614			19,998			20,614
Total assets		1,806,467			1,805,408			1,793,165			1,735,754			1,741,874			1,806,467			1,741,874
Deposits		1,574,998			1,573,677			1,557,167			1,486,470			1,495,424			1,574,998			1,495,424
Stockholders' equity		185,448			179,177			174,323			169,133			165,200			185,448			165,200
Book value per common share		28.20			27.24			26.37			25.40			24.80			28.20			24.80
Tangible book value per common share		25.63			24.65			23.76			22.78			22.15			25.63			22.15
Average balances:
Loans	$	1,420,710		$	1,434,283		$	1,435,745		$	1,437,832		$	1,424,604		$	1,427,458		$	1,414,727
Interest-earning assets		1,679,604			1,652,106			1,637,080			1,654,966			1,676,017			1,665,930			1,673,742
Total assets		1,801,530			1,773,345			1,755,835			1,772,768			1,794,227			1,787,515			1,790,288
Deposits		1,563,322			1,548,306			1,510,978			1,487,865			1,474,952			1,556,369			1,473,184
Interest-bearing liabilities		1,142,604			1,141,177			1,144,202			1,185,391			1,215,923			1,141,894			1,213,758
Goodwill and other intangibles, net		20,096			20,259			20,377			20,610			20,474			20,177			20,488
Stockholders' equity		181,498			175,058			170,992			167,651			162,860			178,295			162,100
Financial ratios:
Return on average assets		1.33	%		1.49	%		1.37	%		1.33	%		1.42	%		1.41	%		1.50	%
Return on average common equity		13.20	%		15.05	%		14.06	%		14.04	%		15.59	%		14.11	%		16.61	%
Average equity to average assets		10.07	%		9.87	%		9.74	%		9.46	%		9.08	%		9.97	%		9.48	%
Stockholders' equity to assets		10.27	%		9.92	%		9.72	%		9.74	%		9.48	%		10.27	%		9.48	%
Tangible equity to tangible assets		9.74	%		9.06	%		8.85	%		8.83	%		8.56	%		9.74	%		8.56	%
Loan yield		5.22	%		5.15	%		5.09	%		4.98	%		5.04	%		5.19	%		5.08	%
Earning asset yield		4.90	%		4.93	%		4.88	%		4.76	%		4.72	%		4.92	%		4.75	%
Cost of funds		1.68	%		1.61	%		1.47	%		1.33	%		1.19	%		1.64	%		1.10	%
Net interest margin, taxable equivalent		3.76	%		3.82	%		3.85	%		3.81	%		3.86	%		3.79	%		3.95	%
Net loan charge-offs to average loans		0.16	%		0.18	%		0.00	%		0.16	%		0.00	%		0.17	%		-0.01	%
Nonperforming loans to total loans		1.20	%		1.14	%		1.44	%		1.99	%		1.43	%		1.20	%		1.43	%
Nonperforming assets to total assets		1.10	%		1.07	%		1.30	%		1.79	%		1.32	%		1.10	%		1.32	%
Allowance for loan losses to loans		0.86	%		0.85	%		0.86	%		0.80	%		0.91	%		0.86	%		0.91	%