Bank First : Announces Net Income for the Second Quarter of 2023 - Form 8-K

Bank First Announces Net Income for the Second Quarter of 2023

·	Net income of $14.1 million and $24.8 million for the three and six months ended June 30, 2023, respectively

·	Earnings per common share of $1.37 and $2.46 for the three and six months ended June 30, 2023, respectively

·	Annualized return on average assets of 1.38% and 1.25% for the three and six months ended June 30, 2023, respectively

·	Quarterly cash dividend of $0.30 per share declared, matching the prior quarter and a 20.0% increase from the prior-year second quarter

MANITOWOC, Wis, July 18, 2023 -- Bank First Corporation (NASDAQ: BFC) ("Bank First" or the "Bank"), the holding company for Bank First, N.A., reported net income of $14.1 million, or $1.37 per share, for the second quarter of 2023, compared with net income of $11.7 million, or $1.55 per share, for the prior-year second quarter. For the six months ended June 30, 2023, Bank First earned $24.8 million, or $2.46 per share, compared to $21.8 million, or $2.89 per share for the same period in 2022. After removing the impact of one-time expenses related to acquisitions as well as gains and losses on sales of securities and other real estate owned ("OREO"), the Bank reported adjusted net income (non-GAAP) of $14.6 million, or $1.41 per share, for the second quarter of 2023, compared with $12.1 million, or $1.61 per share, for the prior-year second quarter. For the first six months of 2023 adjusted net income (non-GAAP) totaled $29.3 million, or $2.91 per share, compared to $22.6 million, or $2.99 per share for the same period in 2022.

Operating Results

Net interest income ("NII") during the second quarter of 2023 was $34.3 million, up $2.0 million from the previous quarter and up $10.8 million from the second quarter of 2022. The impact of purchase accounting increased NII by $2.5 million, or $0.18 per share after tax, during the second quarter of 2023, compared to $2.2 million, or $0.17 per share after tax, during the previous quarter and $0.4 million, or $0.04 per share after tax, during the second quarter of 2022.

Net interest margin ("NIM") was 3.77% for the second quarter of 2023, compared to 3.74% for the previous quarter and 3.21% for the second quarter of 2022. NII from purchase accounting increased NIM by 0.27%, 0.26% and 0.05% for each of these periods, respectively. While the Bank's average rate paid on interest-bearing liabilities continued to rise during the second quarter of 2023, average rates earned on interest-earning assets also saw a significant increase due to continual repricing of variable-rate loans as well as fixed-rate loans which matured and were renewed during the quarter. The beneficial impact of the Bank's continuing high percentage of noninterest-bearing deposits (32.3% of the Bank's total core deposits at June 30, 2023) also had a positive impact, adding 65 basis points to NIM during the second quarter of 2023 compared to 51 basis points and 14 basis points for the prior quarter and second quarter of 2022, respectively.

Bank First did not record a provision for credit losses during the second quarter of 2023, compared to recording a provision of $4.2 million during the previous quarter and $0.5 million during the second quarter of 2022. Provision expense was $4.2 million for the first six months of 2023 compared to $1.7 million for the same period during 2022. The acquisition of the loan portfolio of Hometown Bancorp, Ltd. ("Hometown") during the first quarter of 2023 resulted in a day 1 provision for credit losses expense of $3.6 million as required under the Current Expected Credit Losses ("CECL") methodology, which the Bank adopted on January 1, 2023. The lack of a provision for credit losses during the second quarter of 2023 was the result of a negligible contraction in the Bank's loan portfolio during that quarter as well as continued strong asset quality metrics discussed later in this release. Recoveries of previously charged-off loans exceeded currently charged-off loans by $0.1 million through the first six months of 2023, compared to recoveries exceeding charge-offs by $0.7 million through the first six months of 2022.

Noninterest income was $4.1 million for the second quarter of 2023, compared to $5.8 million and $5.6 million for the prior quarter and second quarter of 2022, respectively. Service charge income increased by $0.2 million, or 10.4%, and $0.3 million, or 22.6%, from the prior quarter and prior-year second quarter, respectively, as a result of the added scale from the acquisitions of Denmark Bancshares, Inc. ("Denmark") and Hometown. Income provided by the Bank's investments in Ansay & Associates and UFS increased by $0.1 million and $0.2 million from the prior-year second quarter, representing 16.0% and 36.8% increases, respectively, while each declined $0.1 million from the prior quarter. Loan servicing income from loans previously sold to the secondary market with servicing rights, and therefore servicing income, retained by the Bank increased by $0.1 million, or 17.8%, and $0.3 million, or 67.2%, from the prior quarter and prior-year second quarter, respectively. Sold but serviced loan portfolios acquired from Denmark and Hometown totaled $159.5 million and $343.6 million, respectively, leading to this increase in loan servicing income. The Bank experienced a $0.5 million negative valuation adjustment to its mortgage servicing rights asset during the second quarter of 2023 which compared unfavorably to $0.8 million and $1.5 million positive valuation adjustments during the prior quarter and prior-year second quarter, respectively. Finally, net losses on sales of OREO totaled $0.5 million during the second quarter of 2023 compared to no corresponding loss in the prior quarter and a negligible loss during the second quarter of 2022. These current quarter losses related to operating locations acquired from Hometown and Denmark, as well as one from a previously acquired institution, which were not utilized as operating locations by Bank First. At the start of the second quarter of 2023 Bank First held nine such buildings, but finished the quarter with only four as a result of these sales.

Noninterest expense was $19.5 million in the second quarter of 2023, compared to $19.7 million during the prior quarter and $13.2 million during the second quarter of 2022. Most areas of noninterest expense have increased over the past four quarters as a result of added operational scale from the acquisitions of Denmark and Hometown, which increased the Bank's total assets by $1.13 billion, or 38.2%, from the end of the second quarter of 2022 to the end of the second quarter of 2023. In addition to this trend, expenses directly attributable to these acquisitions totaling $0.2 million, $1.3 million and $0.6 million during the second and first quarters of 2023 and second quarter of 2022, respectively, have caused volatility in several noninterest expense areas, most notably personnel, occupancy and outside service fee expenses. Core deposit intangible assets of $15.1 million and $16.5 million created by the Denmark and Hometown acquisitions, respectively, created an increase in amortization of intangible assets expense over the last several quarters.

Balance Sheet

Total assets were $4.09 billion at June 30, 2023, a $431.6 million increase from December 31, 2022, and a $1.13 billion increase from June 30, 2022. The preliminary fair value of assets acquired in the Denmark acquisition during the third quarter of 2022 and the Hometown acquisition during the first quarter of 2023 totaled approximately $687.5 million and $614.4 million, respectively.

Total loans were $3.31 billion at June 30, 2023, up $420.5 million from December 31, 2022, and up $926.9 million from June 30, 2022.

Total deposits, nearly all of which remain core deposits, were $3.41 billion at June 30, 2023, up $345.5 million from December 31, 2022, and up $804.3 million from June 30, 2022. As mentioned earlier in this release, noninterest-bearing demand deposits comprised 32.3% of the Bank's total core deposits at June 30, 2023, compared to 31.1% and 31.7% at December 31 and June 30, 2022, respectively.

Asset Quality

Nonperforming assets at June 30, 2023 remained negligible, totaling $7.2 million compared to $6.7 million and $5.3 million at the end of the fourth and second quarters of 2022, respectively. Nonperforming assets to total assets ended the second quarter of 2023 at 0.18%, matching the level from the end of the fourth and second quarters of 2022. Nonperforming assets at June 30, 2023 included four properties valued at $2.2 million that were previously operating branch locations of acquired institutions which are no longer part of the Bank's branch network. These properties have all been listed for sale.

Capital Position

Stockholders' equity totaled $570.9 million at June 30, 2023, an increase of $117.8 million from the end of 2022 and $256.7 million from June 30, 2022. The acquisitions of Denmark and Hometown increased total stockholders' equity by $124.8 million and $115.1 million, respectively. Bank First's tangible common equity (non-GAAP) increased by $39.5 million and $110.2 million during the first half of 2023 and trailing twelve months, respectively. The Bank's book value per common share totaled $54.95 at June 30, 2023 compared to $50.22 at December 31, 2022 and $42.06 at June 30, 2022. Tangible book value per common share (non-GAAP) totaled $35.18 at June 30, 2023 compared to $36.14 at December 31, 2022 and $34.18 at June 30, 2022.

Dividend Declaration

Bank First's Board of Directors approved a quarterly cash dividend of $0.30 per common share, payable on October 4, 2023, to shareholders of record as of September 20, 2023. This dividend represents a 20.0% increase over the dividend declared one year earlier.

Bank First Corporation provides financial services through its subsidiary, Bank First, N.A., which was incorporated in 1894. Bank First offers loan, deposit and treasury management products at each of its 28 banking locations in Wisconsin. The Bank has grown through both acquisitions and de novo branch expansion. The Bank employs approximately 398 full-time equivalent staff and has assets of approximately $4.1 billion. 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 and an alliance with Morgan Stanley. The Bank is a co-owner of a bank technology outfitter, UFS, LLC, which provides digital, core, cybersecurity, managed information technology and private cloud services. Further information about Bank First Corporation is available by clicking on the Shareholder Services tab at www.bankfirst.com.

# # #

Forward-Looking Statements: Certain statements contained in this press release and in other recent filings may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include, without limitation, statements relating to the timing, benefits, costs, and synergies of the mergers with Denmark and Hometown, statements relating to our projected growth, anticipated future financial performance, financial condition, credit quality and management's long-term performance goals, and statements relating to the anticipated effects on our business, financial condition and results of operations from expected developments or events, our business, growth and strategies. These statements can generally be identified by the use of the words and phrases "may," "will," "should," "could," "would," "goal," "plan," "potential," "estimate," "project," "believe," "intend," "anticipate," "expect," "target," "aim," "predict," "continue," "seek," "projection," and other variations of such words and phrases and similar expressions.

These forward-looking statements are not historical facts, and are based upon current expectations, estimates, and projections, many of which, by their nature, are inherently uncertain and beyond Bank First's control. The inclusion of these forward-looking statements should not be regarded as a representation by Bank First or any other person that such expectations, estimates, and projections will be achieved. Accordingly, Bank First cautions shareholders and investors that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, and uncertainties that are difficult to predict. Actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. A number of factors could cause actual results to differ materially from those contemplated by the forward-looking statements including, without limitation, (1) business and economic conditions nationally, regionally and in our target markets, particularly in Wisconsin and the geographic areas in which we operate, (2) changes in government interest rate policies, (3) our ability to effectively manage problem credits, (4) the risks associated with Bank First's pursuit of future acquisitions, (5) Bank First's ability to successful execute its various business strategies, including its ability to execute on potential acquisition opportunities, and (6) general competitive, economic, political, and market conditions.

This communication contains non-GAAP financial measures, such as non-GAAP adjusted net income, non-GAAP adjusted earnings per common share, adjusted earnings return on assets, tangible book value per common share, and tangible common equity to tangible assets. Management believes such measures to be helpful to management, investors and others in understanding Bank First's results of operations or financial position. When non-GAAP financial measures are used, the comparable GAAP financial measures, as well as the reconciliation of the non-GAAP measures to the GAAP financial measures, are provided. See " Non-GAAP Financial Measures" below. The non-GAAP net income measure and related reconciliation provide information useful to investors in understanding the operating performance and trends of Bank First and also aid investors in comparing Bank First's financial performance to the financial performance of peer banks. Management considers non-GAAP financial ratios to be critical metrics with which to analyze and evaluate financial condition and capital strengths. While non-GAAP financial measures are frequently used by stakeholders in the evaluation of a corporation, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analyses of results as reported under GAAP.

Further information regarding Bank First and factors which could affect the forward-looking statements contained herein can be found in Bank First's Annual Report on Form 10-K for the fiscal year ended December 31, 2022, and its other filings with the Securities and Exchange Commission (the "SEC"). Many of these factors are beyond Bank First's ability to control or predict. If one or more events related to these or other risks or uncertainties materialize, or if the underlying assumptions prove to be incorrect, actual results may differ materially from the forward-looking statements. Accordingly, shareholders and investors should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date of this press release, and Bank First undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for Bank First to predict their occurrence or how they will affect the company.

Bank First Corporation

Consolidated Financial Summary (Unaudited)

(In thousands, except share and per share data)		At or for the Three Months Ended			At or for the Six Months Ended
		6/30/2023			3/31/2023			12/31/2022			9/30/2022			6/30/2022			6/30/2023			6/30/2022
Results of Operations:
Interest income		$	45,929			$	40,902			$	35,754			$	30,740			$	25,820			$	86,831			$	50,040
Interest expense			11,657				8,668				5,132				3,047				2,340				20,325				4,270
Net interest income			34,272				32,234				30,622				27,693				23,480				66,506				45,770
Provision for credit losses *			-				4,182				500				-				500				4,182				1,700
Net interest income after provision for credit losses *			34,272				28,052				30,122				27,693				22,980				62,324				44,070
Noninterest income			4,065				5,849				3,896				5,166				5,551				9,914				10,785
Noninterest expense			19,457				19,664				17,254				18,895				13,219				39,121				25,950
Income before income tax expense			18,880				14,237				16,764				13,964				15,312				33,117				28,905
Income tax expense			4,748				3,557				3,920				3,431				3,658				8,305				7,068
Net income		$	14,132			$	10,680			$	12,844			$	10,533			$	11,654			$	24,812			$	21,837
Earnings per common share - basic		$	1.39			$	1.09			$	1.43			$	1.26			$	1.55			$	2.48			$	2.89
Earnings per common share - diluted			1.37				1.09				1.43				1.26				1.55				2.46				2.89
Common Shares:
Basic weighted average			10,331,725				9,714,184				8,962,400				8,205,914				7,457,443				10,024,559				7,498,739
Diluted weighted average			10,346,575				9,737,879				8,993,685				8,228,197				7,472,561				10,047,287				7,517,767
Outstanding			10,389,240				10,407,114				9,021,697				9,028,629				7,470,255				10,389,240				7,470,255
Noninterest income / noninterest expense:
Service charges		$	1,766			$	1,599			$	1,564			$	1,383			$	1,441			$	3,365			$	2,863
Income from Ansay			950				1,071				242				671				819				2,021				1,645
Income from UFS			770				890				935				852				563				1,660				1,268
Loan servicing income			749				636				545				491				448				1,385				886
Valuation adjustment on mortgage servicing rights			(548	)			779				19				885				1,511				231				1,961
Net gain on sales of mortgage loans			236				140				222				264				403				376				1,074
Net gain (loss) on other real estate owned			(489	)			-				-				-				(25	)			(489	)			146
Other noninterest income			631				734				369				620				391				1,365				942
Total noninterest income		$	4,065			$	5,849			$	3,896			$	5,166			$	5,551			$	9,914			$	10,785
Personnel expense		$	9,870			$	9,912			$	8,162			$	10,812			$	7,006			$	19,782			$	14,181
Occupancy, equipment and office			1,317				1,591				1,962				1,176				1,214				2,908				2,329
Data processing			2,094				1,864				1,971				1,577				1,431				3,958				2,776
Postage, stationery and supplies			224				380				229				215				144				604				327
Advertising			85				81				66				61				55				166				144
Charitable contributions			228				223				165				150				235				451				403
Outside service fees			1,347				2,202				1,631				2,538				1,386				3,549				2,558
Net loss on sales of securities			-				75				-				-				-				75				-
Amortization of intangibles			1,672				1,422				980				751				294				3,094				587
Other noninterest expense			2,620				1,914				2,088				1,615				1,454				4,534				2,645
Total noninterest expense		$	19,457			$	19,664			$	17,254			$	18,895			$	13,219			$	39,121			$	25,950
Period-end balances:
Cash and cash equivalents		$	111,326			$	169,691			$	119,350			$	143,441			$	43,986			$	111,326			$	43,986
Investment securities available-for-sale, at fair value			191,303				197,895				304,637				303,280				292,426				191,303				292,426
Investment securities held-to-maturity, at cost			77,708				78,032				45,097				40,826				33,867				77,708				33,867
Loans			3,314,481				3,323,296				2,893,978				2,859,293				2,387,617				3,314,481				2,387,617
Allowance for credit losses - loans *			(43,409	)			(43,316	)			(22,680	)			(23,045	)			(22,699	)			(43,409	)			(22,699	)
Premises and equipment			66,958				63,736				56,448				57,019				50,608				66,958				50,608
Goodwill and core deposit intangible, net			205,329				207,022				127,036				129,361				58,805				205,329				58,805
Mortgage servicing rights			13,504				14,052				9,582				9,563				6,977				13,504				6,977
Other assets			154,871				156,820				126,984				121,016				109,440				154,871				109,440
Total assets			4,092,071				4,167,228				3,660,432				3,640,754				2,961,027				4,092,071				2,961,027
Deposits			3,405,736				3,463,235				3,060,229				3,138,201				2,601,479				3,405,736				2,601,479
Securities sold under repurchase agreements			23,802				46,636				97,196				21,963				16,125				23,802				16,125
Borrowings			70,269				70,994				25,429				26,069				19,235				70,269				19,235
Other liabilities			21,392				23,991				24,475				15,106				10,026				21,392				10,026
Total liabilities			3,521,199				3,604,856				3,207,329				3,201,339				2,646,865				3,521,199				2,646,865
Stockholders' equity			570,872				562,372				453,103				439,415				314,162				570,872				314,162
Book value per common share		$	54.95			$	54.04			$	50.22			$	48.67			$	42.06			$	54.95			$	42.06
Tangible book value per common share (non-GAAP)		$	35.18			$	34.14			$	36.14			$	34.34			$	34.18			$	35.18			$	34.18
Average balances:
Loans		$	3,312,353			$	3,135,438			$	2,860,967			$	2,640,397			$	2,341,954			$	3,224,384			$	2,307,147
Interest-earning assets			3,683,143				3,524,672				3,316,406				3,062,921				2,975,376				3,604,344				2,988,202
Total assets			4,100,549				3,901,713				3,633,251				3,349,615				3,186,384				4,001,680				3,198,603
Deposits			3,407,650				3,269,838				3,111,328				2,911,561				2,566,520				3,339,123				2,555,060
Interest-bearing liabilities			2,437,034				2,334,956				2,198,549				2,034,158				2,053,369				2,386,276				2,066,697
Goodwill and other intangibles, net			206,209				160,156				111,440				90,962				58,987				183,310				59,135
Stockholders' equity			567,531				520,212				446,579				401,130				317,484				544,002				320,153
Financial ratios:
Return on average assets **			1.38	%			1.11	%			1.40	%			1.25	%			1.47	%			1.25	%			1.38	%
Return on average common equity **			9.99	%			8.33	%			11.41	%			10.42	%			14.72	%			9.20	%			13.75	%
Average equity to average assets			13.84	%			13.33	%			12.29	%			11.98	%			9.96	%			13.59	%			10.01	%
Stockholders' equity to assets			13.95	%			13.50	%			12.38	%			12.07	%			10.61	%			13.95	%			10.61	%
Tangible equity to tangible assets (non-GAAP)			9.40	%			8.97	%			9.23	%			8.83	%			8.80	%			9.40	%			8.80	%
Loan yield **			5.20	%			4.96	%			4.58	%			4.29	%			4.06	%			5.08	%			4.04	%
Earning asset yield **			5.04	%			4.74	%			4.32	%			4.03	%			3.53	%			4.89	%			3.42	%
Cost of funds **			1.92	%			1.51	%			0.93	%			0.59	%			0.46	%			1.72	%			0.42	%
Net interest margin, taxable equivalent **			3.77	%			3.74	%			3.71	%			3.63	%			3.21	%			3.76	%			3.13	%
Net loan charge-offs to average loans **			-0.01	%			0.00	%			0.12	%			-0.05	%			-0.08	%			-0.01	%			-0.06	%
Nonperforming loans to total loans			0.15	%			0.14	%			0.15	%			0.17	%			0.22	%			0.15	%			0.22	%
Nonperforming assets to total assets			0.18	%			0.22	%			0.18	%			0.18	%			0.18	%			0.18	%			0.18	%
Allowance for credit losses - loans to total loans*			1.31	%			1.30	%			0.78	%			0.81	%			0.95	%			1.31	%			0.95	%
Non-GAAP Financial Measures
Adjusted net income reconciliation
Net income (GAAP)		$	14,132			$	10,680			$	12,844			$	10,533			$	11,654			$	24,812			$	21,837
Acquisition related expenses			171				1,342				1,381				4,638				556				1,513				1,034
Provision for credit losses related to acquisition			-				3,552				-				-				-				3,552				-
Losses (gains) on sales of securities and OREO			489				75				-				-				25				564				(146	)
Adjusted net income before income tax impact			14,792				15,649				14,225				15,171				12,235				30,441				22,725
Income tax impact of adjustments			(165	)			(971	)			(347	)			(1,129	)			(140	)			(1,136	)			(133	)
Adjusted net income (non-GAAP)		$	14,627			$	14,678			$	13,878			$	14,042			$	12,095			$	29,305			$	22,592
Adjusted earnings per share calculation
Adjusted net income (non-GAAP)		$	14,627			$	14,678			$	13,878			$	14,042			$	12,095			$	29,305			$	22,592
Basic weighted average common shares outstanding			10,331,725				9,714,184				8,962,400				8,205,914				7,457,443				10,024,559				7,498,739
Adjusted earnings per share (non-GAAP)		$	1.42			$	1.50			$	1.54			$	1.70			$	1.61			$	2.92			$	2.99
Annualized return of adjusted earnings on average assets calculation
Adjusted net income (non-GAAP)		$	14,627			$	14,678			$	13,878			$	14,042			$	12,095			$	29,305			$	22,592
Average total assets		$	4,100,549			$	3,901,713			$	3,633,251			$	3,349,615			$	3,186,384			$	4,001,680			$	3,198,603
Annualized return of adjusted earnings on average assets (non-GAAP)			1.43	%			1.53	%			1.55	%			1.70	%			1.54	%			1.48	%			1.42	%
Tangible assets reconciliation
Total assets (GAAP)		$	4,092,071			$	4,167,228			$	3,660,432			$	3,640,754			$	2,961,027			$	4,092,071			$	2,961,027
Goodwill			(175,104	)			(175,125	)			(110,206	)			(111,551	)			(55,357	)			(175,104	)			(55,357	)
Core deposit intangible, net of amortization			(30,225	)			(31,897	)			(16,829	)			(17,810	)			(3,448	)			(30,225	)			(3,448	)
Tangible assets (non-GAAP)		$	3,886,742			$	3,960,206			$	3,533,397			$	3,511,393			$	2,902,222			$	3,886,742			$	2,902,222
Tangible common equity reconciliation
Total stockholders' equity (GAAP)		$	570,872			$	562,372			$	453,103			$	439,415			$	314,162			$	570,872			$	314,162
Goodwill			(175,104	)			(175,125	)			(110,206	)			(111,551	)			(55,357	)			(175,104	)			(55,357	)
Core deposit intangible, net of amortization			(30,225	)			(31,897	)			(16,829	)			(17,810	)			(3,448	)			(30,225	)			(3,448	)
Tangible common equity (non-GAAP)		$	365,543			$	355,350			$	326,068			$	310,054			$	255,357			$	365,543			$	255,357
Tangible book value per common share calculation
Tangible common equity (non-GAAP)		$	365,543			$	355,350			$	326,068			$	310,054			$	255,357			$	365,543			$	255,357
Common shares outstanding at the end of the period			10,389,240				10,407,114				9,021,697				9,028,629				7,470,255				10,389,240				7,470,255
Tangible book value per common share (non-GAAP)		$	35.18			$	34.14			$	36.14			$	34.34			$	34.18			$	35.18			$	34.18
Tangible equity to tangible assets calculation
Tangible common equity (non-GAAP)		$	365,543			$	355,350			$	326,068			$	310,054			$	255,357			$	365,543			$	255,357
Tangible assets (non-GAAP)		$	3,886,742			$	3,960,206			$	3,533,397			$	3,511,393			$	2,902,222			$	3,886,742			$	2,902,222
Tangible equity to tangible assets (non-GAAP)			9.40	%			8.97	%			9.23	%			8.83	%			8.80	%			9.40	%			8.80	%

* Prior to January 1, 2023, the incurred loss methodology was used to estimate credit losses. Subsequent to that date credit losses are estimated using the CECL methodology.

** Components of the quarterly ratios were annualized.

Bank First Corporation

Average assets, liabilities and stockholders' equity, and average rates earned or paid

		Three Months Ended
		June 30, 2023			June 30, 2022
		Average Balance			Interest Income/ Expenses (1)			Rate Earned/ Paid (1)			Average Balance			Interest Income/ Expenses (1)			Rate Earned/ Paid (1)
		(dollars in thousands)
ASSETS
Interest-earning assets
Loans (2)
Taxable		$	3,209,040				167,425				5.22	%		$	2,245,335			$	90,810				4.04	%
Tax-exempt			103,313				4,690				4.54	%			96,619				4,224				4.37	%
Securities
Taxable (available for sale)			181,969				5,332				2.93	%			236,441				4,857				2.05	%
Tax-exempt (available for sale)			35,496				1,124				3.17	%			77,372				2,083				2.69	%
Taxable (held to maturity)			73,271				2,631				3.59	%			27,700				710				2.56	%
Tax-exempt (held to maturity)			4,228				110				2.60	%			5,296				136				2.57	%
Cash, due from banks and other			75,826				4,155				5.48	%			286,613				2,099				0.73	%
Total interest-earning assets			3,683,143				185,467				5.04	%			2,975,376				104,919				3.53	%
Noninterest-earning assets			460,748												233,096
Allowance for credit losses - loans			(43,342	)											(22,088	)
Total assets		$	4,100,549											$	3,186,384
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing deposits
Checking accounts		$	294,149			$	5,275				1.79	%		$	233,793			$	422				0.18	%
Savings accounts			856,852				10,137				1.18	%			607,151				2,326				0.38	%
Money market accounts			667,577				12,444				1.86	%			671,617				2,145				0.32	%
Certificates of deposit			497,527				12,463				2.50	%			230,217				1,816				0.79	%
Brokered Deposits			4,490				129				2.87	%			9,238				272				2.94	%
Total interest-bearing deposits			2,320,595				40,448				1.74	%			1,752,016				6,981				0.40	%
Other borrowed funds			116,439				6,309				5.42	%			301,353				2,409				0.80	%
Total interest-bearing liabilities			2,437,034				46,757				1.92	%			2,053,369				9,390				0.46	%
Noninterest-bearing liabilities
Demand Deposits			1,087,055												814,504
Other liabilities			8,929												1,027
Total Liabilities			3,533,018												2,868,900
Stockholders' equity			567,531												317,484
Total liabilities & stockholders' equity		$	4,100,549											$	3,186,384
Net interest income on a fully taxable equivalent basis							138,710												95,529
Less taxable equivalent adjustment							(1,244	)											(1,353	)
Net interest income						$	137,466											$	94,176
Net interest spread (3)											3.12	%											3.07	%
Net interest margin (4)											3.77	%											3.21	%

(1)	Annualized on a fully taxable equivalent basis calculated using a federal tax rate of 21%.

(2)	Nonaccrual loans are included in average amounts outstanding.

(3)	Represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.

(4)	Represents net interest income on a fully tax equivalent basis as a percentage of average interest-earning assets.

Bank First Corporation

Average assets, liabilities and stockholders' equity, and average rates earned or paid

		Six Months Ended
		June 30, 2023			June 30, 2022
		Average Balance			Interest Income/ Expenses (1)			Rate Earned/ Paid (1)			Average Balance			Interest Income/ Expenses (1)			Rate Earned/ Paid (1)
		(dollars in thousands)
ASSETS
Interest-earning assets
Loans (2)
Taxable		$	3,122,738			$	159,219				5.10	%		$	2,210,344			$	88,990				4.03	%
Tax-exempt			101,646				4,597				4.52	%			96,803				4,209				4.35	%
Securities
Taxable (available for sale)			210,753				5,879				2.79	%			214,990				5,040				2.34	%
Tax-exempt (available for sale)			40,689				1,271				3.12	%			80,922				2,117				2.62	%
Taxable (held to maturity)			63,789				2,311				3.62	%			13,926				357				2.56	%
Tax-exempt (held to maturity)			4,704				122				2.59	%			5,599				144				2.57	%
Cash, due from banks and other			60,025				2,961				4.93	%			365,618				1,412				0.39	%
Total interest-earning assets			3,604,344				176,360				4.89	%			2,988,202				102,269				3.42	%
Noninterest-earning assets			437,328												231,828
Allowance for loan losses			(39,992	)											(21,427	)
Total assets		$	4,001,680											$	3,198,603
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing deposits
Checking accounts		$	294,648			$	4,831				1.64	%		$	235,778			$	347				0.15	%
Savings accounts			839,702				8,670				1.03	%			589,869				2,123				0.36	%
Money market accounts			666,530				11,020				1.65	%			677,475				2,031				0.30	%
Certificates of deposit			474,225				10,675				2.25	%			233,636				1,853				0.79	%
Brokered Deposits			5,597				163				2.91	%			10,455				305				2.92	%
Total interest-bearing deposits			2,280,702				35,359				1.55	%			1,747,213				6,659				0.38	%
Other borrowed funds			105,574				5,629				5.33	%			319,484				1,952				0.61	%
Total interest-bearing liabilities			2,386,276				40,988				1.72	%			2,066,697				8,611				0.42	%
Noninterest-bearing liabilities
Demand Deposits			1,058,421												807,847
Other liabilities			12,981												3,906
Total Liabilities			3,457,678												2,878,450
Stockholders' equity			544,002												320,153
Total liabilities & stockholders' equity		$	4,001,680											$	3,198,603
Net interest income on a fully taxable equivalent basis							135,372												93,658
Less taxable equivalent adjustment							(1,257	)											(1,359	)
Net interest income						$	134,115											$	92,299
Net interest spread (3)											3.18	%											3.01	%
Net interest margin (4)											3.76	%											3.13	%

(1)	Annualized on a fully taxable equivalent basis calculated using a federal tax rate of 21%.

(2)	Nonaccrual loans are included in average amounts outstanding.

(3)	Represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.

(4)	Represents net interest income on a fully tax equivalent basis as a percentage of average interest-earning assets.