Bank First (BFC) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 was $16.1 million ($1.59 per share), up from $14.1 million ($1.37 per share) in Q2 2023, driven by positive MSR valuation and OREO gains.

• For the first half of 2024, net income increased $6.7 million to $31.5 million ($3.10 per share), reflecting added scale from the Hometown acquisition and lower provision for credit losses.

• Adjusted net income for Q2 2024 was $15.7 million ($1.56 per share), compared to $14.6 million ($1.42 per share) in Q2 2023.

• The company completed the integration of Hometown Bancorp, expanding its branch network and market presence.

• Quarterly cash dividend of $0.40 per share declared, a 14.3% increase from the prior quarter and 33.3% higher than Q2 2023.

Financial highlights

• Net interest income for Q2 2024 was $33.0 million, down $1.3 million year-over-year due to higher funding costs.

• Net interest margin was 3.63% in Q2 2024, up from 3.62% in Q1 2024 but down from 3.77% in Q2 2023.

• Noninterest income for Q2 2024 grew 29% to $5.9 million, with service charges and MSR valuation gains offsetting the absence of UFS income.

• Noninterest expense for Q2 2024 decreased 4% to $19.1 million, aided by lower OREO losses and controlled personnel costs.

• Total assets at June 30, 2024 were $4.15 billion, up $53.7 million year-over-year but down $76.0 million from December 31, 2023.

Outlook and guidance

• Management expects to continue exceeding all well-capitalized regulatory capital requirements and maintain a strong capital position through 2024.

• The company anticipates ongoing loan growth, supported by liquidity and borrowing capacity, and expects to benefit from recent tax law changes reducing state tax liability.

• Management expects continued benefits from higher yields on renewed and new loans, and ongoing positive impact from a high percentage of noninterest-bearing deposits.

• Forward-looking statements caution about economic, interest rate, and competitive risks, especially in Wisconsin and core markets.