Bank First Corporation, the holding company for Bank First, N.A., reported net income of $11.5 million, or $1.50 per share, for the second quarter of 2021, compared with net income of $8.3 million, or $1.11 per share, for the prior-year second quarter.
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Net interest income ("NII") during the second quarter of 2021 was $21.8 million, down $0.3 million from the previous quarter but up $1.0 million from the second quarter of 2020. The quarter-over-quarter decline in NII was related entirely to interest income recognized on Paycheck Protection Program ("PPP") loans.
Net interest margin ("NIM") was 3.37% for the second quarter of 2021, compared to 3.67% for the second quarter of 2020. The aforementioned purchase loan accounting entries added 0.08% and 0.16% to NIM for each of these periods, respectively.
Bank First recorded a provision for loan losses of $1.0 million during the second quarter of 2021, compared to $3.2 million during the second quarter of 2020. Provision expense was $1.9 million for the first six months of 2021 compared to $4.1 million for the same period during 2020.
Recoveries of previously charged-off loans negligibly exceeded currently charged-off loans through the first six months of 2021, compared to a net recovery of previously charged-off loans totaling $0.6 million during the first six months of 2020. The provision expense recorded during the most recent quarter was primarily driven by solid loan growth, excluding reductions in PPP loan balances, during the period.
Noninterest income was $6.6 million for the second quarter of 2021, compared to $7.8 million for the second quarter of 2020. The year-over-year decline in quarterly noninterest income was driven by the sale of $36.6 million of U.S. Treasury notes during the second quarter of 2020, generating a gain on sale of $3.1 million.
No similar gain occurred during the second quarter of 2021. Following the trend of the last several quarters, service charge income was strong at $1.6 million, an increase of 37.8% over the prior year second quarter.
Loan servicing income totaled $1.2 million, compared to $0.2 million in the prior year second quarter.
The current year second quarter included a $0.6 million positive adjustment to the value of the Bank's mortgage servicing rights, compared to a $0.5 million negative adjustment to these rights in the prior year second quarter. Finally, net gains on sales of mortgage loans to the secondary market totaled $2.2 million during the second quarter of 2021, comparing favorably to $1.3 million during the second quarter of 2020.
Noninterest expense was $12.2 million in the second quarter of 2021, compared to $14.4 million during the second quarter of 2020.
The year-over-year decline in quarterly noninterest expense was principally related to expenses resulting from Bank First's acquisition of Tomah Bancshares, Inc., totaling $0.8 million, and the recognition of a prepayment penalty related to early repayment of $30.0 million in borrowings from the Federal Home Loan Bank of Chicago, totaling $1.3 million, both of which were one-time expenses occurring during the second quarter of 2020.
Net gains on sales and valuations of other real estate owned during the second quarter of 2021 totaled $0.1 million, comparing favorably to net losses of $0.5 million during the second quarter of 2020.
Total assets were $2.82 billion at June 30, 2021, a $100.9 million increase from December 31, 2020, and up $161.0 million from June 30, 2020. Total loans were $2.23 billion at June 30, 2021, up $33.8 million from December 31, 2020, and up $110.2 million from June 30, 2020.
Excluding PPP originations and repayments or forgiveness, loans grew by 14.4% over the trailing twelve months. Annualized loan growth during the second quarter of 2021, also excluding PPP activity, amounted to 12.1%.
Total deposits, nearly all of which remain core deposits, were $2.45 billion at June 30, 2021, up $125.7 million from December 31, 2020, and up $183.5 million from June 30, 2020. Noninterest-bearing demand deposits comprised 32.1% of the Bank's total core deposits at June 30, 2021, compared to 31.2% and 31.4% at December 31 and June 30, 2020, respectively. ■