8-K
Bank First Corp (BFC)
UNITED STATES
SECURITIES ANDEXCHANGE COMMISSION
Washington, D.C.20549
FORM 8-K
CURRENT REPORT
Pursuant to Section13 OR 15(d) of The Securities Exchange Act of 1934
| Date of Report (Date of earliest event reported) | October 18, 2022 |
|---|
Bank First Corporation
(Exact name of registrant as specified in its charter)
| Wisconsin | 001-38676 | 39-1435359 |
|---|---|---|
| (State or other jurisdiction | (Commission | (IRS Employer |
| of incorporation) | File Number) | Identification No.) |
| 402 North 8th Street, Manitowoc, WI | 54220 | |
| --- | --- | |
| (Address of principal executive offices) | (Zip Code) | |
| Registrant’s telephone number, including area code | (920) 652-3100 | |
| --- | --- |
N/A
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Ticker symbol(s) | Name of each exchange on which <br><br>registered |
|---|---|---|
| Common Stock, par value $0.01 per share | BFC | The Nasdaq Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company x
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for company with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. x
| Item 2.02 | Results of Operations and Financial Condition. |
|---|
On October 18, 2022, Bank First Corporation (the “Company”) announced its earnings for the quarter ended September 30, 2022. A copy of the press release is attached as Exhibit 99.1 to this Report on Form 8-K and is incorporated herein by reference.
Pursuant to General Instruction B.2 of Form 8-K, the information in this Item 2.02 and Exhibit 99.1 is being furnished to the Securities and Exchange Commission and shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities under that Section. Furthermore, the information in this Item 2.02 and Exhibit 99.1 shall not be deemed to be incorporated by reference into the filings of the Registrant under the Securities Act of 1933, as amended, or the Exchange Act.
| Item 9.01 | Financial Statements and Exhibits. |
|---|
(d) Exhibits
| Exhibit<br><br> Number | Description of Exhibit |
|---|---|
| 99.1 | Press Release, dated October 18, 2022 |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| BANK FIRST CORPORATION | ||
|---|---|---|
| Date: October 18, 2022 | By: | /s/ Kevin M. LeMahieu |
| Kevin M. LeMahieu | ||
| Chief Financial Officer |
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@bankfirst.com
FOR IMMEDIATE RELEASE
Bank First Announces Net Income for the ThirdQuarter of 2022
| · | Successfullyclosed acquisition of Denmark Bancshares, Inc. during the quarter impacting quarterly results and period-end balances |
|---|---|
| · | Netincome of $10.5 and $32.4 million for the three and nine months ended September 30, 2022, respectively |
| · | Earnings per common share of $1.26 and $4.15 for the three and nine months ended September 30, 2022, respectively |
| --- | --- |
| · | Quarterlycash dividend of $0.25 per share declared, matching the prior quarter and a 13.6% increase from the prior-year third quarter |
| --- | --- |
MANITOWOC, Wis, October 18, 2022 -- Bank First Corporation (NASDAQ: BFC) (“Bank First” or the “Bank”), the holding company for Bank First, N.A., reported net income of $10.5 million, or $1.26 per share, for the third quarter of 2022, compared with net income of $11.2 million, or $1.46 per share, for the prior-year third quarter. For the nine months ended September 30, 2022, Bank First earned $32.4 million, or $4.15 per share, compared to $34.3 million, or $4.45 per share for the same period in 2021. Pre-tax expenses related to the Bank’s acquisition of Denmark Bancshares, Inc. (“Denmark”) and planned acquisition of Hometown Bancorp, Ltd. totaled $4.6 million during the third quarter of 2022, reducing after-tax earnings per share by approximately $0.43. Year-to-date these expenses have reduced after-tax earnings per share by $0.57.
Operating Results
Net interest income (“NII”) during the third quarter of 2022 was $27.7 million, up $4.2 million from the previous quarter and up $4.8 million from the third quarter of 2021. Interest income on loans originated through the Small Business Administration’s Paycheck Protection Program (“PPP”) totaled $0.1 million during the third quarter of 2022, compared to $0.4 million during the previous quarter and $2.3 million during the third quarter of 2021.
Purchase accounting entries, resulting from our acquisition of Denmark during the third quarter of 2022, as well as acquisitions of other institutions over the last several years, increased NII during the third quarter of 2022 by $0.7 million, or $0.07 per share after tax, compared to $0.4 million and $0.3 million, or $0.04 and $0.03 per share after tax, for the previous quarter and third quarter of 2021, respectively. For the first nine months of 2022 and 2021 the impact of these purchase accounting entries increased NII by $1.4 million, or $0.13 per share after tax, and $1.2 million, or $0.12 per share after tax, respectively.
Net interest margin (“NIM”) was 3.63% for the third quarter of 2022, compared to 3.21% for the previous quarter and 3.47% for the third quarter of 2021. Purchase accounting entries added 0.10%, 0.05% and 0.04% to NIM for each of these periods, respectively.
During much of the first half of 2022 the Bank engaged in a strategy to enhance NII, utilizing $300.0 million in short-term borrowings from the Federal Home Loan Bank and investing these funds in short-term, liquid, risk-free, interest-earning assets. This strategy was discontinued during the third quarter of 2022 contributing approximately 0.27% to the increase in NIM quarter-over-quarter.
Bank First did not record a provision for loan losses during the third quarter of 2022, compared to a provision of $0.5 million during the previous quarter and $0.7 million during the third quarter of 2021. Provision expense was $1.7 million for the first nine months of 2022 compared to $2.5 million for the same period during 2021. Recoveries of previously charged-off loans exceeded currently charged-off loans by $0.3 million during the third quarter of 2022 and $1.0 million through the first nine months of 2022. These net recoveries along with continued strong asset quality metrics in the Bank’s loan portfolio led to management’s decision that there was not a need for provision expense during the third quarter of 2022.
Noninterest income was $5.2 million for the third quarter of 2022, compared to $5.6 million during the previous quarter and $5.0 million for the third quarter of 2021. As noted in recent quarters, noninterest income for the Bank during 2022 has been negatively impacted by an industry-wide slowdown in residential mortgage lending, leading to a decline in gains on sales of mortgage loans to the secondary market of $0.9 million in the third quarter of 2022 compared to the prior-year third quarter. Through the first nine months of 2022, these gains were $4.9 million less than the first nine months of 2021. Offsetting these declines, the Bank experienced a $1.1 million increase in loan servicing income during the third quarter of 2022 compared to the prior-year third quarter and an increase of $2.6 million through the first nine months of 2022 compared to the first nine months of 2021. These increases resulted from a combination of higher overall balances of sold-but-serviced loans and increased valuations of mortgage servicing rights on the Bank’s balance sheet. The Bank’s acquisition of Denmark included approximately $159.5 million in loans sold-but-serviced, bringing the Bank’s total sold-but-serviced loan portfolio to approximately $873.4 million.
Noninterest expense was $18.9 million in the third quarter of 2022, compared to $13.2 million during the previous quarter and $12.5 million during the third quarter of 2021. As noted earlier, the elevated level of noninterest expense during the third quarter of 2022 was primarily a result of one-time acquisition expenses. To a lesser extent, added scale for approximately half of the third quarter of 2022 resulting from the Denmark acquisition and inflationary pressures also increased noninterest expense. Personnel expense for the third quarter of 2022 was $3.8 million higher than the prior quarter and prior-year third quarter, primarily the result of $3.0 million in one-time severance and employment agreement payments resulting from the Denmark transaction. Data processing expense, which included $0.1 million in expenses during the third quarter of 2022 directly linked to acquisitions, was $0.1 million higher than the prior quarter and $0.3 million higher than the prior-year third quarter. Outside services fees, which included $1.5 million in expenses during the third quarter of 2022 directly linked to acquisitions, was $1.2 million higher than the prior quarter (which also included $0.4 million in expenses directly linked to acquisitions) and $1.8 million higher than the prior-year third quarter. Finally, amortization expense related to core deposit intangibles on the Bank’s balance sheet increased $0.5 million from the prior quarter and $0.4 million from the prior-year third quarter. The acquisition of Denmark created a core deposit intangible of approximately $15.1 million (3.1% of core deposits acquired). Amortization of this core deposit intangible, which began during the third quarter of 2022, added $0.5 million in amortization expense for the quarter.
Balance Sheet
Total assets were $3.64 billion at September 30, 2022, a $703.2 million increase from December 31, 2021, and up $794.1 million from September 30, 2021. The preliminary fair value of assets acquired in the Denmark acquisition during the third quarter of 2022 totaled approximately $687.5 million.
Total loans were $2.86 billion at September 30, 2022, up $623.8 million from December 31, 2021, and up $650.4 million from June 30, 2021. Excluding the impact of PPP repayments or forgiveness as well as approximately $458.1 million in loans acquired from Denmark as of September 30, 2022, loans grew by 12.2% over the trailing twelve months. Annualized loan growth during the third quarter of 2022 and first nine months of 2022, also excluding PPP activity and acquired loans from Denmark, amounted to 4.8% and 12.5%, respectively. The Federal Reserve Board has made several significant increases to the effective Federal Funds rate during 2022, causing significant volatility in financial markets and generally an increasing overall rate environment. Competitors in the Bank’s markets have been slow to raise loan offering rates with many remaining at or near the US Treasury yield curve. Management has elected to raise loan offering rates more proportionate to the overall rising yield curve while reserving the most aggressive rate offerings for customers who maintain their full banking relationship with Bank First. This decision is intended to conserve the Bank’s liquidity until market competition better aligns with recent rate environment movements. Management anticipates that year-to-date and anticipated future rate increases by the Federal Reserve Board will minimize the impact of this decision on the Bank’s overall NII and NIM.
Total deposits, nearly all of which remain core deposits, were $3.14 billion at September 30, 2022, up $609.8 million from December 31, 2021, and up $665.9 million from September 30, 2021. The preliminary fair value of deposits acquired in the Denmark acquisition totaled $606.5 million. Noninterest-bearing demand deposits comprised 31.3% of the Bank’s total core deposits at September 30, 2022, compared to 32.1% at September 30, 2021. The high-quality deposit portfolio mix acquired from Denmark allowed this critical component of the Bank’s profitability to remain strong subsequent to that transaction.
Asset Quality
Nonperforming assets at September 30, 2022, totaled $6.2 million, down $1.6 million and $5.4 million from the end of the fourth and third quarters of 2021, respectively. Nonperforming assets to total assets ended the third quarter of 2022 at 0.18%, down from 0.28% and 0.42% at the end of the fourth and third quarters of 2021, respectively. Nonperforming assets at September 30, 2022, include $1.4 million in properties acquired from Denmark which will not be utilized by the Bank and have been listed for sale.
Capital Position
Stockholders’ equity totaled $439.4 million at September 30, 2022, an increase of $116.8 million from the end of 2021 and an increase of $124.2 million from September 30, 2021. Interest rate movements during the first nine months of 2022 impacted the value of investments in the Bank’s available-for-sale investment portfolio, creating a loss in other comprehensive income which reduced stockholders’ equity by $6.7 million during the third quarter of 2022 and $22.3 million year-to-date. Dividends totaling $5.6 million and share repurchases totaling $13.8 million further reduced capital through the first nine months of 2022. Strong earnings served to partially offset these items, increasing capital by $32.4 million. Finally, the acquisition of Denmark increased total stockholders’ equity by $125.3 million. Tangible book value increased by $46.8 million through the first nine months of 2022 and $54.5 million for the trailing twelve months ending September 30, 2022. Tangible book value per common share outstanding totaled $34.34 at September 30, 2022 compared to $34.56 and $33.44 at December 31 and September 30, 2021, respectively.
Dividend Declaration
Bank First’s Board of Directors approved a quarterly cash dividend of $0.25 per common share, payable on January 4, 2023, to shareholders of record as of December 21, 2022. This dividend matches the previous quarter’s dividend and represents a 13.6% increase over the dividend declared one year earlier.
Bank First Corporation provides financial services through its subsidiary, Bank First, which was incorporated in 1894. Bank First offers loan, deposit and treasury management products at each of its 26 banking locations in Wisconsin. The bank has grown through both acquisitions and de novo branch expansion. The company employs approximately 335 full-time equivalent staff and has assets of approximately $3.6 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 partnerships 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 bank technology outfitter, UFS, LLC, which provides digital, core, cybersecurity, managed IT and private cloud services. Further information about Bank First Corporation is available by clicking on the Investor Relations tab at www.BankFirst.com.
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Forward-Looking Statements:Certain statements contained in this press release and in other recent filings may constitute forward-looking statements within the meaningof 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 themerger with Denmark, statements relating to our projected growth, anticipated future financial performance, financial condition, creditquality and management’s long-term performance goals, and statements relating to the anticipated effects on our business, financialcondition and results of operations from expected developments or events, our business, growth and strategies. These statements can generallybe 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 statementsare not historical facts, and are based upon current expectations, estimates, and projections, many of which, by their nature, are inherentlyuncertain and beyond Bank First’s control. The inclusion of these forward-looking statements should not be regarded as a representationby Bank First or any other person that such expectations, estimates, and projections will be achieved. Accordingly, Bank First cautionsshareholders 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 expressedor implied by the forward-looking statements. A number of factors could cause actual results to differ materially from those contemplatedby the forward-looking statements including, without limitation, (1) business and economic conditions nationally, regionally andin our target markets, particularly in Wisconsin and the geographic areas in which we operate, (2) changes in government interestrate policies, (3) our ability to effectively manage problem credits, (4) the risks associated with Bank First’s pursuitof future acquisitions, (5) Bank First’s ability to successful execute its various business strategies, including its abilityto execute on potential acquisition opportunities, and (6) general competitive, economic, political, and market conditions.
Further information regardingBank First and factors which could affect the forward-looking statements contained herein can be found in Bank First's Annual Report onForm 10-K for the fiscal year ended December 31, 2021, 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 tothese or other risks or uncertainties materialize, or if the underlying assumptions prove to be incorrect, actual results may differ materiallyfrom the forward-looking statements. Accordingly, shareholders and investors should not place undue reliance on any such forward-lookingstatements. Any forward-looking statement speaks only as of the date of this press release, and Bank First undertakes no obligation topublicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, exceptas required by law. New risks and uncertainties may emerge from time to time, and it is not possible for Bank First to predict their occurrenceor how they will affect the company.
Bank First Corporation
Consolidated Financial Summary (Unaudited)
| (In<br> thousands, except per share data) | At<br> or for the Three Months Ended | At<br> or for the Period Ended | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 9/30/2022 | 6/30/2022 | 3/31/2022 | 12/31/2021 | 9/30/2021 | 9/30/2022 | 9/30/2021 | |||||||||||||||
| Results<br> of Operations: | |||||||||||||||||||||
| Interest<br> income | $ | 30,740 | $ | 25,820 | $ | 24,220 | $ | 25,043 | $ | 24,898 | $ | 80,780 | $ | 73,343 | |||||||
| Interest<br> expense | 3,047 | 2,340 | 1,930 | 1,812 | 1,964 | 7,317 | 6,492 | ||||||||||||||
| Net<br> interest income | 27,693 | 23,480 | 22,290 | 23,231 | 22,934 | 73,463 | 66,851 | ||||||||||||||
| Provision<br> for loan losses | - | 500 | 1,200 | 600 | 650 | 1,700 | 2,500 | ||||||||||||||
| Net<br> interest income after provision for loan losses | 27,693 | 22,980 | 21,090 | 22,631 | 22,284 | 71,763 | 64,351 | ||||||||||||||
| Noninterest<br> income | 5,166 | 5,551 | 5,234 | 5,520 | 5,031 | 15,951 | 18,021 | ||||||||||||||
| Noninterest<br> expense | 18,895 | 13,219 | 12,731 | 13,435 | 12,469 | 44,845 | 37,121 | ||||||||||||||
| Income<br> before income tax expense | 13,964 | 15,312 | 13,593 | 14,716 | 14,846 | 42,869 | 45,251 | ||||||||||||||
| Income<br> tax expense | 3,431 | 3,658 | 3,410 | 3,553 | 3,628 | 10,499 | 10,971 | ||||||||||||||
| Net<br> income | $ | 10,533 | $ | 11,654 | $ | 10,183 | $ | 11,163 | $ | 11,218 | $ | 32,370 | $ | 34,280 | |||||||
| Earnings<br> per common share - basic | $ | 1.26 | $ | 1.55 | $ | 1.34 | $ | 1.46 | $ | 1.46 | $ | 4.15 | $ | 4.45 | |||||||
| Earnings<br> per common share - diluted | 1.26 | 1.55 | 1.34 | 1.46 | 1.46 | 4.15 | 4.45 | ||||||||||||||
| Common<br> Shares: | |||||||||||||||||||||
| Basic<br> weighted average | 8,205,914 | 7,457,443 | 7,540,264 | 7,570,128 | 7,605,541 | 7,737,089 | 7,638,857 | ||||||||||||||
| Diluted<br> weighted average | 8,228,197 | 7,472,561 | 7,559,844 | 7,595,052 | 7,624,791 | 7,757,726 | 7,658,828 | ||||||||||||||
| Outstanding | 9,028,629 | 7,470,255 | 7,570,766 | 7,616,540 | 7,641,771 | 9,028,629 | 7,641,771 | ||||||||||||||
| Noninterest<br> income / noninterest expense: | |||||||||||||||||||||
| Service<br> charges | $ | 1,383 | $ | 1,441 | $ | 1,422 | $ | 1,574 | $ | 1,491 | $ | 4,246 | $ | 4,554 | |||||||
| Income<br> from Ansay | 671 | 819 | 826 | 383 | 756 | 2,316 | 2,204 | ||||||||||||||
| Income<br> from UFS | 852 | 563 | 705 | 776 | 751 | 2,120 | 1,780 | ||||||||||||||
| Loan<br> servicing income | 1,673 | 2,106 | 1,062 | 1,557 | 599 | 4,841 | 2,282 | ||||||||||||||
| Net<br> gain on sales of mortgage loans | 264 | 403 | 671 | 1,167 | 1,206 | 1,338 | 6,204 | ||||||||||||||
| Net<br> gain (loss) on other real estate owned | - | (25 | ) | 171 | (186 | ) | - | 146 | 206 | ||||||||||||
| Other<br> noninterest income | 323 | 244 | 377 | 249 | 228 | 944 | 791 | ||||||||||||||
| Total<br> noninterest income | $ | 5,166 | $ | 5,551 | $ | 5,234 | $ | 5,520 | $ | 5,031 | $ | 15,951 | $ | 18,021 | |||||||
| Personnel<br> expense | $ | 10,812 | $ | 7,006 | $ | 7,175 | $ | 7,307 | $ | 6,996 | $ | 24,993 | $ | 21,208 | |||||||
| Occupancy,<br> equipment and office | 1,176 | 1,214 | 1,115 | 950 | 1,070 | 3,505 | 3,248 | ||||||||||||||
| Data<br> processing | 1,577 | 1,431 | 1,345 | 1,334 | 1,259 | 4,353 | 4,010 | ||||||||||||||
| Postage,<br> stationery and supplies | 215 | 144 | 183 | 181 | 204 | 542 | 532 | ||||||||||||||
| Advertising | 61 | 55 | 89 | 75 | 50 | 205 | 152 | ||||||||||||||
| Charitable<br> contributions | 150 | 235 | 168 | 135 | 121 | 553 | 399 | ||||||||||||||
| Outside<br> service fees | 2,538 | 1,386 | 1,172 | 776 | 741 | 5,096 | 2,300 | ||||||||||||||
| Net<br> loss on sales of securities | - | - | - | - | 3 | - | 3 | ||||||||||||||
| Amortization<br> of intangibles | 751 | 294 | 293 | 352 | 351 | 1,338 | 1,053 | ||||||||||||||
| Other<br> noninterest expense | 1,615 | 1,454 | 1,191 | 2,325 | 1,674 | 4,260 | 4,216 | ||||||||||||||
| Total<br> noninterest expense | $ | 18,895 | $ | 13,219 | $ | 12,731 | $ | 13,435 | $ | 12,469 | $ | 44,845 | $ | 37,121 | |||||||
| Period-end<br> balances: | |||||||||||||||||||||
| Cash<br> and cash equivalents | $ | 143,441 | $ | 43,986 | $ | 107,359 | $ | 296,860 | $ | 299,953 | $ | 143,441 | $ | 299,953 | |||||||
| Investment<br> securities available-for-sale, at fair value | 303,280 | 292,426 | 297,063 | 212,689 | 148,376 | 303,280 | 148,376 | ||||||||||||||
| Investment<br> securities held-to-maturity, at cost | 40,826 | 33,867 | 5,841 | 5,911 | 5,912 | 40,826 | 5,912 | ||||||||||||||
| Loans | 2,859,293 | 2,387,617 | 2,316,688 | 2,235,515 | 2,208,915 | 2,859,293 | 2,208,915 | ||||||||||||||
| Allowance<br> for loan losses | (23,045 | ) | (22,699 | ) | (21,749 | ) | (20,315 | ) | (20,237 | ) | (23,045 | ) | (20,237 | ) | |||||||
| Premises<br> and equipment | 57,019 | 50,608 | 50,068 | 49,461 | 44,181 | 57,019 | 44,181 | ||||||||||||||
| Goodwill<br> and core deposit intangible, net | 129,361 | 58,805 | 59,099 | 59,392 | 59,743 | 129,361 | 59,743 | ||||||||||||||
| Mortgage<br> servicing rights | 9,563 | 6,977 | 5,466 | 5,016 | 4,345 | 9,563 | 4,345 | ||||||||||||||
| Other<br> assets | 121,016 | 109,440 | 105,101 | 93,023 | 95,417 | 121,016 | 95,417 | ||||||||||||||
| Total<br> assets | 3,640,754 | 2,961,027 | 2,924,936 | 2,937,552 | 2,846,605 | 3,640,754 | 2,846,605 | ||||||||||||||
| Deposits | 3,138,201 | 2,601,479 | 2,557,106 | 2,528,440 | 2,472,258 | 3,138,201 | 2,472,258 | ||||||||||||||
| Securities<br> sold under repurchase agreements | 21,963 | 16,125 | 13,130 | 41,122 | 17,402 | 21,963 | 17,402 | ||||||||||||||
| Borrowings | 26,069 | 19,235 | 25,247 | 25,511 | 26,679 | 26,069 | 26,679 | ||||||||||||||
| Other<br> liabilities | 15,106 | 10,026 | 11,150 | 19,826 | 15,004 | 15,106 | 15,004 | ||||||||||||||
| Total<br> liabilities | 3,201,339 | 2,646,865 | 2,606,633 | 2,614,899 | 2,531,343 | 3,201,339 | 2,531,343 | ||||||||||||||
| Stockholders'<br> equity | 439,415 | 314,162 | 318,303 | 322,653 | 315,262 | 439,415 | 315,262 | ||||||||||||||
| Book<br> value per common share | 48.67 | 42.06 | 42.04 | 42.36 | 41.26 | 48.67 | 41.26 | ||||||||||||||
| Tangible<br> book value per common share | 34.34 | 34.18 | 34.24 | 34.56 | 33.44 | 34.34 | 33.44 | ||||||||||||||
| Average<br> balances: | |||||||||||||||||||||
| Loans | $ | 2,640,397 | $ | 2,341,954 | $ | 2,271,956 | $ | 2,207,615 | $ | 2,218,324 | $ | 2,419,451 | $ | 2,220,570 | |||||||
| Interest-earning<br> assets | 3,062,921 | 2,975,376 | 3,001,174 | 2,695,175 | 2,659,584 | 3,013,382 | 2,614,140 | ||||||||||||||
| Total<br> assets | 3,349,615 | 3,186,384 | 3,209,202 | 2,901,685 | 2,861,959 | 3,249,469 | 2,816,409 | ||||||||||||||
| Deposits | 2,911,561 | 2,566,520 | 2,543,471 | 2,513,918 | 2,479,799 | 2,675,199 | 2,430,068 | ||||||||||||||
| Interest-bearing<br> liabilities | 2,034,158 | 2,053,369 | 2,080,172 | 1,759,437 | 1,738,895 | 2,055,732 | 1,719,162 | ||||||||||||||
| Goodwill<br> and other intangibles, net | 90,962 | 58,987 | 59,285 | 59,614 | 59,969 | 69,861 | 60,368 | ||||||||||||||
| Stockholders'<br> equity | 401,130 | 317,484 | 322,852 | 318,837 | 313,868 | 347,442 | 307,517 | ||||||||||||||
| Paycheck<br> Protection Program ("PPP") loan information | |||||||||||||||||||||
| PPP<br> Loans (period end) | $ | - | $ | 5,625 | $ | 16,904 | $ | 31,100 | $ | 62,639 | $ | - | $ | 62,639 | |||||||
| PPP<br> Loan Deferred Origination Fees (period end) | - | 106 | 477 | 1,080 | 2,243 | - | 2,243 | ||||||||||||||
| PPP<br> Loans (average during the period) | 2,663 | 10,138 | 23,552 | 50,602 | 95,645 | 12,041 | 146,686 | ||||||||||||||
| Interest<br> income recognized during the period (includes recognized origination fees) | 94 | 396 | 662 | 1,290 | 2,251 | 1,152 | 6,541 | ||||||||||||||
| Financial<br> ratios: | |||||||||||||||||||||
| Return<br> on average assets | 1.25 | % | 1.47 | % | 1.27 | % | 1.53 | % | 1.57 | % | 1.33 | % | 1.62 | % | |||||||
| Return<br> on average common equity | 10.42 | % | 14.72 | % | 12.62 | % | 13.89 | % | 14.30 | % | 12.46 | % | 14.86 | % | |||||||
| Average<br> equity to average assets | 11.98 | % | 9.96 | % | 10.06 | % | 10.99 | % | 10.97 | % | 10.69 | % | 10.92 | % | |||||||
| Stockholders'<br> equity to assets | 12.07 | % | 10.61 | % | 10.88 | % | 10.98 | % | 11.08 | % | 12.07 | % | 11.08 | % | |||||||
| Tangible<br> equity to tangible assets | 8.83 | % | 8.80 | % | 9.04 | % | 9.15 | % | 9.17 | % | 8.83 | % | 9.17 | % | |||||||
| Loan<br> yield | 4.29 | % | 4.06 | % | 4.02 | % | 4.25 | % | 4.25 | % | 4.13 | % | 4.24 | % | |||||||
| Earning<br> asset yield | 4.03 | % | 3.53 | % | 3.32 | % | 3.74 | % | 3.76 | % | 3.63 | % | 3.80 | % | |||||||
| Cost<br> of funds | 0.59 | % | 0.46 | % | 0.38 | % | 0.41 | % | 0.45 | % | 0.48 | % | 0.50 | % | |||||||
| Net<br> interest margin, taxable equivalent | 3.63 | % | 3.21 | % | 3.06 | % | 3.47 | % | 3.47 | % | 3.30 | % | 3.47 | % | |||||||
| Net<br> loan charge-offs to average loans | -0.05 | % | -0.08 | % | -0.04 | % | 0.02 | % | -0.01 | % | -0.06 | % | 0.00 | % | |||||||
| Nonperforming<br> loans to total loans | 0.17 | % | 0.22 | % | 0.24 | % | 0.37 | % | 0.53 | % | 0.17 | % | 0.53 | % | |||||||
| Nonperforming<br> assets to total assets | 0.18 | % | 0.18 | % | 0.19 | % | 0.28 | % | 0.42 | % | 0.18 | % | 0.42 | % | |||||||
| Allowance<br> for loan losses to loans | 0.81 | % | 0.95 | % | 0.94 | % | 0.91 | % | 0.92 | % | 0.81 | % | 0.92 | % |
Bank First Corporation
Averageassets, liabilities and stockholders' equity, and average rates earned or paid
| Three<br> Months Ended | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30,<br> 2022 | September 30,<br> 2021 | |||||||||||||||||
| Average<br> <br><br>Balance | Interest<br><br><br> Income/ <br><br>Expenses (1) | Rate<br> Earned/<br><br> Paid (1) | Average<br><br> <br>Balance | Interest<br><br><br> Income/<br><br> Expenses (1) | Rate<br> Earned/ <br><br>Paid (1) | |||||||||||||
| (dollars<br> in thousands) | ||||||||||||||||||
| ASSETS | ||||||||||||||||||
| Interest-earning<br> assets | ||||||||||||||||||
| Loans<br> (2) | ||||||||||||||||||
| Taxable | $ | 2,545,855 | $ | 109,147 | 4.29 | % | $ | 2,132,765 | $ | 90,476 | 4.24 | % | ||||||
| Tax-exempt | 94,542 | 4,227 | 4.47 | % | 85,559 | 3,910 | 4.57 | % | ||||||||||
| Securities | ||||||||||||||||||
| Taxable<br> (available for sale) | 240,261 | 5,453 | 2.27 | % | 88,821 | 2,933 | 3.30 | % | ||||||||||
| Tax-exempt<br> (available for sale) | 81,355 | 2,143 | 2.63 | % | 70,253 | 2,187 | 3.11 | % | ||||||||||
| Taxable<br> (held to maturity) | 31,014 | 853 | 2.75 | % | - | - | - | |||||||||||
| Tax-exempt<br> (held to maturity) | 5,196 | 134 | 2.58 | % | 5,912 | 150 | 2.54 | % | ||||||||||
| Cash<br> and due from banks | 64,698 | 1,366 | 2.11 | % | 276,274 | 435 | 0.16 | % | ||||||||||
| Total<br> interest-earning assets | 3,062,921 | 123,323 | 4.03 | % | 2,659,584 | 100,091 | 3.76 | % | ||||||||||
| Non<br> interest-earning assets | 309,925 | 222,385 | ||||||||||||||||
| Allowance<br> for loan losses | (23,231 | ) | (20,010 | ) | ||||||||||||||
| Total<br> assets | $ | 3,349,615 | $ | 2,861,959 | ||||||||||||||
| LIABILITIES<br> AND SHAREHOLDERS' EQUITY | ||||||||||||||||||
| Interest-bearing<br> deposits | ||||||||||||||||||
| Checking<br> accounts | $ | 262,003 | $ | 1,359 | 0.52 | % | $ | 203,736 | $ | 248 | 0.12 | % | ||||||
| Savings<br> accounts | 750,027 | 3,224 | 0.43 | % | 521,635 | 1,927 | 0.37 | % | ||||||||||
| Money<br> market accounts | 682,260 | 2,957 | 0.43 | % | 683,275 | 2,111 | 0.31 | % | ||||||||||
| Certificates<br> of deposit | 297,622 | 2,725 | 0.92 | % | 260,581 | 2,373 | 0.91 | % | ||||||||||
| Brokered<br> Deposits | 6,781 | 199 | 2.93 | % | 12,461 | 359 | 2.88 | % | ||||||||||
| Total<br> interest bearing deposits | 1,998,693 | 10,464 | 0.52 | % | 1,681,688 | 7,018 | 0.42 | % | ||||||||||
| Other<br> borrowed funds | 35,465 | 1,625 | 4.58 | % | 57,207 | 773 | 1.35 | % | ||||||||||
| Total<br> interest-bearing liabilities | 2,034,158 | 12,089 | 0.59 | % | 1,738,895 | 7,791 | 0.45 | % | ||||||||||
| Non-interest<br> bearing liabilities | ||||||||||||||||||
| Demand<br> Deposits | 912,868 | 798,111 | ||||||||||||||||
| Other<br> liabilities | 1,459 | 11,085 | ||||||||||||||||
| Total<br> Liabilities | 2,948,485 | 2,548,091 | ||||||||||||||||
| Shareholders'<br> equity | 401,130 | 313,868 | ||||||||||||||||
| Total<br> liabilities & sharesholders' equity | $ | 3,349,615 | $ | 2,861,959 | ||||||||||||||
| Net<br> interest income on a fully taxable equivalent basis | 111,234 | 92,300 | ||||||||||||||||
| Less<br> taxable equivalent adjustment | (1,366 | ) | (1,312 | ) | ||||||||||||||
| Net<br> interest income | $ | 109,868 | $ | 90,988 | ||||||||||||||
| Net<br> interest spread (3) | 3.43 | % | 3.32 | % | ||||||||||||||
| Net<br> interest margin (4) | 3.63 | % | 3.47 | % |
(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
| Nine<br> Months Ended | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30,<br> 2022 | September 30,<br> 2021 | |||||||||||||||||
| Average<br> <br><br>Balance | Interest<br><br><br> Income/ <br><br>Expenses (1) | Rate<br> Earned/ <br><br>Paid (1) | Average<br><br><br> Balance | Interest<br><br><br> Income/<br><br> Expenses (1) | Rate<br> Earned/<br><br> Paid (1) | |||||||||||||
| (dollars<br> in thousands) | ||||||||||||||||||
| ASSETS | ||||||||||||||||||
| Interest-earning<br> assets | ||||||||||||||||||
| Loans<br> (2) | ||||||||||||||||||
| Taxable | $ | 2,323,410 | $ | 95,783 | 4.12 | % | $ | 2,132,037 | $ | 90,072 | 4.22 | % | ||||||
| Tax-exempt | 96,041 | 4,215 | 4.39 | % | 88,533 | 4,100 | 4.63 | % | ||||||||||
| Securities | ||||||||||||||||||
| Taxable<br> (available for sale) | 223,506 | 5,180 | 2.32 | % | 97,677 | 2,612 | 2.67 | % | ||||||||||
| Tax-exempt<br> (available for sale) | 81,067 | 2,126 | 2.62 | % | 70,546 | 2,217 | 3.14 | % | ||||||||||
| Taxable<br> (held to maturity) | 19,685 | 524 | 2.66 | % | - | - | - | |||||||||||
| Tax-exempt<br> (held to maturity) | 5,464 | 141 | 2.58 | % | 6,161 | 156 | 2.53 | % | ||||||||||
| Cash<br> and due from banks | 264,209 | 1,395 | 0.53 | % | 219,186 | 262 | 0.12 | % | ||||||||||
| Total<br> interest-earning assets | 3,013,382 | 109,364 | 3.63 | % | 2,614,140 | 99,419 | 3.80 | % | ||||||||||
| Non<br> interest-earning assets | 258,122 | 221,231 | ||||||||||||||||
| Allowance<br> for loan losses | (22,035 | ) | (18,962 | ) | ||||||||||||||
| Total<br> assets | $ | 3,249,469 | $ | 2,816,409 | ||||||||||||||
| LIABILITIES<br> AND SHAREHOLDERS' EQUITY | ||||||||||||||||||
| Interest-bearing<br> deposits | ||||||||||||||||||
| Checking<br> accounts | $ | 244,615 | $ | 688 | 0.28 | % | $ | 212,197 | $ | 252 | 0.12 | % | ||||||
| Savings<br> accounts | 643,841 | 2,494 | 0.39 | % | 480,285 | 1,752 | 0.36 | % | ||||||||||
| Money<br> market accounts | 679,091 | 2,343 | 0.35 | % | 656,922 | 2,183 | 0.33 | % | ||||||||||
| Certificates<br> of deposit | 255,197 | 2,147 | 0.84 | % | 288,805 | 3,266 | 1.13 | % | ||||||||||
| Brokered<br> Deposits | 9,217 | 269 | 2.92 | % | 15,607 | 444 | 2.84 | % | ||||||||||
| Total<br> interest bearing deposits | 1,831,961 | 7,941 | 0.43 | % | 1,653,816 | 7,897 | 0.48 | % | ||||||||||
| Other<br> borrowed funds | 223,771 | 1,842 | 0.82 | % | 65,346 | 784 | 1.20 | % | ||||||||||
| Total<br> interest-bearing liabilities | 2,055,732 | 9,783 | 0.48 | % | 1,719,162 | 8,681 | 0.50 | % | ||||||||||
| Non-interest<br> bearing liabilities | ||||||||||||||||||
| Demand<br> Deposits | 843,238 | 776,252 | ||||||||||||||||
| Other<br> liabilities | 3,057 | 13,478 | ||||||||||||||||
| Total<br> Liabilities | 2,902,027 | 2,508,892 | ||||||||||||||||
| Shareholders'<br> equity | 347,442 | 307,517 | ||||||||||||||||
| Total<br> liabilities & sharesholders' equity | $ | 3,249,469 | $ | 2,816,409 | ||||||||||||||
| Net<br> interest income on a fully taxable equivalent basis | 99,581 | 90,738 | ||||||||||||||||
| Less<br> taxable equivalent adjustment | (1,361 | ) | (1,359 | ) | ||||||||||||||
| Net<br> interest income | $ | 98,220 | $ | 89,379 | ||||||||||||||
| Net<br> interest spread (3) | 3.15 | % | 3.30 | % | ||||||||||||||
| Net<br> interest margin (4) | 3.30 | % | 3.47 | % |
(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.