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) | July 18, 2023 |
|---|
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<br> of each exchange on which 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 July 18, 2023, Bank First Corporation (the “Company”) announced its earnings for the quarter ended June 30, 2023. 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> Number | Description of Exhibit |
|---|---|
| 99.1 | Press Release, dated July 18, 2023 |
| 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: | July 18, 2023 | By: | /s/ Kevin M. LeMahieu |
| Kevin M. LeMahieu | |||
| Chief Financial Officer |
Exhibit 99.1
| NEWS<br><br> <br>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 SecondQuarter of 2023
| · | Net income of $14.1 million and $24.8 millionfor the three and six months ended June 30, 2023, respectively |
|---|---|
| · | Earnings per common share of $1.37 and $2.46for 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 sharedeclared, 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.
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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-lookingstatements include, without limitation, statements relating to the timing, benefits, costs, and synergies of the mergers with Denmarkand Hometown, statements relating to our projected growth, anticipated future financial performance, financial condition, credit qualityand management’s long-term performance goals, and statements relating to the anticipated effects on our business, financial conditionand results of operations from expected developments or events, our business, growth and strategies. These statements can generally beidentified 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 and in ourtarget 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 acquisitionopportunities, and (6) general competitive, economic, political, and market conditions.
This communicationcontains non-GAAP financial measures, such as non-GAAP adjusted net income, non-GAAP adjusted earnings per common share, adjustedearnings return on assets, tangible book value per common share, and tangible common equity to tangible assets. Management believessuch measures to be helpful to management, investors and others in understanding Bank First's results of operations or financialposition. When non-GAAP financial measures are used, the comparable GAAP financial measures, as well as the reconciliation of thenon-GAAP measures to the GAAP financial measures, are provided. See " Non-GAAP Financial Measures" below. Thenon-GAAP net income measure and related reconciliation provide information useful to investors in understanding the operatingperformance and trends of Bank First and also aid investors in comparing Bank First's financial performance to the financialperformance of peer banks. Management considers non-GAAP financial ratios to be critical metrics with which to analyze andevaluate financial condition and capital strengths. While non-GAAP financial measures are frequently used by stakeholders in theevaluation of a corporation, they have limitations as analytical tools and should not be considered in isolation or as a substitutefor analyses of results as reported under GAAP.
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, 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 risksor uncertainties materialize, or if the underlying assumptions prove to be incorrect, actual results may differ materially from the forward-lookingstatements. Accordingly, shareholders and investors should not place undue reliance on any such forward-looking statements. Any forward-lookingstatement speaks only as of the date of this press release, and Bank First undertakes no obligation to publicly update or review any forward-lookingstatement, whether as a result of new information, future developments or otherwise, except as required by law. New risks and uncertaintiesmay 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<br> thousands, except share and per share data) | At<br> or for the Three Months Ended | At<br> 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<br> Operations: | |||||||||||||||||||||
| Interest<br> income | $ | 45,929 | $ | 40,902 | $ | 35,754 | $ | 30,740 | $ | 25,820 | $ | 86,831 | $ | 50,040 | |||||||
| Interest<br> expense | 11,657 | 8,668 | 5,132 | 3,047 | 2,340 | 20,325 | 4,270 | ||||||||||||||
| Net interest<br> income | 34,272 | 32,234 | 30,622 | 27,693 | 23,480 | 66,506 | 45,770 | ||||||||||||||
| Provision<br> for credit losses * | - | 4,182 | 500 | - | 500 | 4,182 | 1,700 | ||||||||||||||
| Net interest<br> income after provision for credit losses * | 34,272 | 28,052 | 30,122 | 27,693 | 22,980 | 62,324 | 44,070 | ||||||||||||||
| Noninterest<br> income | 4,065 | 5,849 | 3,896 | 5,166 | 5,551 | 9,914 | 10,785 | ||||||||||||||
| Noninterest<br> expense | 19,457 | 19,664 | 17,254 | 18,895 | 13,219 | 39,121 | 25,950 | ||||||||||||||
| Income before<br> income tax expense | 18,880 | 14,237 | 16,764 | 13,964 | 15,312 | 33,117 | 28,905 | ||||||||||||||
| Income<br> tax expense | 4,748 | 3,557 | 3,920 | 3,431 | 3,658 | 8,305 | 7,068 | ||||||||||||||
| Net<br> income | $ | 14,132 | $ | 10,680 | $ | 12,844 | $ | 10,533 | $ | 11,654 | $ | 24,812 | $ | 21,837 | |||||||
| Earnings<br> per common share - basic | $ | 1.39 | $ | 1.09 | $ | 1.43 | $ | 1.26 | $ | 1.55 | $ | 2.48 | $ | 2.89 | |||||||
| Earnings<br> 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<br> income / noninterest expense: | |||||||||||||||||||||
| Service charges | $ | 1,766 | $ | 1,599 | $ | 1,564 | $ | 1,383 | $ | 1,441 | $ | 3,365 | $ | 2,863 | |||||||
| Income from<br> Ansay | 950 | 1,071 | 242 | 671 | 819 | 2,021 | 1,645 | ||||||||||||||
| Income from<br> UFS | 770 | 890 | 935 | 852 | 563 | 1,660 | 1,268 | ||||||||||||||
| Loan servicing<br> income | 749 | 636 | 545 | 491 | 448 | 1,385 | 886 | ||||||||||||||
| Valuation<br> adjustment on mortgage servicing rights | (548 | ) | 779 | 19 | 885 | 1,511 | 231 | 1,961 | |||||||||||||
| Net gain on<br> sales of mortgage loans | 236 | 140 | 222 | 264 | 403 | 376 | 1,074 | ||||||||||||||
| Net gain (loss)<br> on other real estate owned | (489 | ) | - | - | - | (25 | ) | (489 | ) | 146 | |||||||||||
| Other<br> noninterest income | 631 | 734 | 369 | 620 | 391 | 1,365 | 942 | ||||||||||||||
| Total<br> noninterest income | $ | 4,065 | $ | 5,849 | $ | 3,896 | $ | 5,166 | $ | 5,551 | $ | 9,914 | $ | 10,785 | |||||||
| Personnel<br> expense | $ | 9,870 | $ | 9,912 | $ | 8,162 | $ | 10,812 | $ | 7,006 | $ | 19,782 | $ | 14,181 | |||||||
| Occupancy,<br> 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<br> and supplies | 224 | 380 | 229 | 215 | 144 | 604 | 327 | ||||||||||||||
| Advertising | 85 | 81 | 66 | 61 | 55 | 166 | 144 | ||||||||||||||
| Charitable<br> contributions | 228 | 223 | 165 | 150 | 235 | 451 | 403 | ||||||||||||||
| Outside service<br> fees | 1,347 | 2,202 | 1,631 | 2,538 | 1,386 | 3,549 | 2,558 | ||||||||||||||
| Net loss on<br> sales of securities | - | 75 | - | - | - | 75 | - | ||||||||||||||
| Amortization of intangibles | 1,672 | 1,422 | 980 | 751 | 294 | 3,094 | 587 | ||||||||||||||
| Other<br> noninterest expense | 2,620 | 1,914 | 2,088 | 1,615 | 1,454 | 4,534 | 2,645 | ||||||||||||||
| Total<br> noninterest expense | $ | 19,457 | $ | 19,664 | $ | 17,254 | $ | 18,895 | $ | 13,219 | $ | 39,121 | $ | 25,950 | |||||||
| Period-end<br> balances: | |||||||||||||||||||||
| Cash and cash<br> equivalents | $ | 111,326 | $ | 169,691 | $ | 119,350 | $ | 143,441 | $ | 43,986 | $ | 111,326 | $ | 43,986 | |||||||
| Investment<br> securities available-for-sale, at fair value | 191,303 | 197,895 | 304,637 | 303,280 | 292,426 | 191,303 | 292,426 | ||||||||||||||
| Investment<br> 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<br> for credit losses - loans * | (43,409 | ) | (43,316 | ) | (22,680 | ) | (23,045 | ) | (22,699 | ) | (43,409 | ) | (22,699 | ) | |||||||
| Premises and<br> equipment | 66,958 | 63,736 | 56,448 | 57,019 | 50,608 | 66,958 | 50,608 | ||||||||||||||
| Goodwill and<br> core deposit intangible, net | 205,329 | 207,022 | 127,036 | 129,361 | 58,805 | 205,329 | 58,805 | ||||||||||||||
| Mortgage servicing<br> 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<br> 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'<br> 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<br> 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<br> 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<br> liabilities | 2,437,034 | 2,334,956 | 2,198,549 | 2,034,158 | 2,053,369 | 2,386,276 | 2,066,697 | ||||||||||||||
| Goodwill and<br> other intangibles, net | 206,209 | 160,156 | 111,440 | 90,962 | 58,987 | 183,310 | 59,135 | ||||||||||||||
| Stockholders'<br> equity | 567,531 | 520,212 | 446,579 | 401,130 | 317,484 | 544,002 | 320,153 | ||||||||||||||
| Financial<br> ratios: | |||||||||||||||||||||
| Return on<br> average assets ** | 1.38 | % | 1.11 | % | 1.40 | % | 1.25 | % | 1.47 | % | 1.25 | % | 1.38 | % | |||||||
| Return on<br> 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'<br> equity to assets | 13.95 | % | 13.50 | % | 12.38 | % | 12.07 | % | 10.61 | % | 13.95 | % | 10.61 | % | |||||||
| Tangible equity<br> to tangible assets (non-GAAP) | 9.40 | % | 8.97 | % | 9.23 | % | 8.83 | % | 8.80 | % | 9.40 | % | 8.80 | % | |||||||
| Loan yield<br> ** | 5.20 | % | 4.96 | % | 4.58 | % | 4.29 | % | 4.06 | % | 5.08 | % | 4.04 | % | |||||||
| Earning asset<br> 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<br> margin, taxable equivalent ** | 3.77 | % | 3.74 | % | 3.71 | % | 3.63 | % | 3.21 | % | 3.76 | % | 3.13 | % | |||||||
| Net loan charge-offs<br> to average loans ** | -0.01 | % | 0.00 | % | 0.12 | % | -0.05 | % | -0.08 | % | -0.01 | % | -0.06 | % | |||||||
| Nonperforming<br> loans to total loans | 0.15 | % | 0.14 | % | 0.15 | % | 0.17 | % | 0.22 | % | 0.15 | % | 0.22 | % | |||||||
| Nonperforming<br> assets to total assets | 0.18 | % | 0.22 | % | 0.18 | % | 0.18 | % | 0.18 | % | 0.18 | % | 0.18 | % | |||||||
| Allowance<br> for credit losses - loans to total loans* | 1.31 | % | 1.30 | % | 0.78 | % | 0.81 | % | 0.95 | % | 1.31 | % | 0.95 | % | |||||||
| Non-GAAP<br> Financial Measures | |||||||||||||||||||||
| Adjusted net<br> income reconciliation | |||||||||||||||||||||
| Net income<br> (GAAP) | $ | 14,132 | $ | 10,680 | $ | 12,844 | $ | 10,533 | $ | 11,654 | $ | 24,812 | $ | 21,837 | |||||||
| Acquisition<br> related expenses | 171 | 1,342 | 1,381 | 4,638 | 556 | 1,513 | 1,034 | ||||||||||||||
| Provision<br> for credit losses related to acquisition | - | 3,552 | - | - | - | 3,552 | - | ||||||||||||||
| Losses<br> (gains) on sales of securities and OREO | 489 | 75 | - | - | 25 | 564 | (146 | ) | |||||||||||||
| Adjusted net<br> income before income tax impact | 14,792 | 15,649 | 14,225 | 15,171 | 12,235 | 30,441 | 22,725 | ||||||||||||||
| Income<br> tax impact of adjustments | (165 | ) | (971 | ) | (347 | ) | (1,129 | ) | (140 | ) | (1,136 | ) | (133 | ) | |||||||
| Adjusted<br> net income (non-GAAP) | $ | 14,627 | $ | 14,678 | $ | 13,878 | $ | 14,042 | $ | 12,095 | $ | 29,305 | $ | 22,592 | |||||||
| Adjusted earnings<br> per share calculation | |||||||||||||||||||||
| Adjusted net<br> income (non-GAAP) | $ | 14,627 | $ | 14,678 | $ | 13,878 | $ | 14,042 | $ | 12,095 | $ | 29,305 | $ | 22,592 | |||||||
| Basic weighted<br> 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<br> per share (non-GAAP) | $ | 1.42 | $ | 1.50 | $ | 1.54 | $ | 1.70 | $ | 1.61 | $ | 2.92 | $ | 2.99 | |||||||
| Annualized<br> return of adjusted earnings on average assets calculation | |||||||||||||||||||||
| Adjusted net<br> income (non-GAAP) | $ | 14,627 | $ | 14,678 | $ | 13,878 | $ | 14,042 | $ | 12,095 | $ | 29,305 | $ | 22,592 | |||||||
| Average total<br> assets | $ | 4,100,549 | $ | 3,901,713 | $ | 3,633,251 | $ | 3,349,615 | $ | 3,186,384 | $ | 4,001,680 | $ | 3,198,603 | |||||||
| Annualized<br> 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<br> reconciliation | |||||||||||||||||||||
| Total assets<br> (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<br> deposit intangible, net of amortization | (30,225 | ) | (31,897 | ) | (16,829 | ) | (17,810 | ) | (3,448 | ) | (30,225 | ) | (3,448 | ) | |||||||
| Tangible<br> 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<br> equity reconciliation | |||||||||||||||||||||
| Total stockholders’<br> 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<br> deposit intangible, net of amortization | (30,225 | ) | (31,897 | ) | (16,829 | ) | (17,810 | ) | (3,448 | ) | (30,225 | ) | (3,448 | ) | |||||||
| Tangible<br> common equity (non-GAAP) | $ | 365,543 | $ | 355,350 | $ | 326,068 | $ | 310,054 | $ | 255,357 | $ | 365,543 | $ | 255,357 | |||||||
| Tangible book value per common<br> share calculation | |||||||||||||||||||||
| Tangible common<br> equity (non-GAAP) | $ | 365,543 | $ | 355,350 | $ | 326,068 | $ | 310,054 | $ | 255,357 | $ | 365,543 | $ | 255,357 | |||||||
| Common shares<br> 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<br> share (non-GAAP) | $ | 35.18 | $ | 34.14 | $ | 36.14 | $ | 34.34 | $ | 34.18 | $ | 35.18 | $ | 34.18 | |||||||
| Tangible equity<br> to tangible assets calculation | |||||||||||||||||||||
| Tangible common<br> equity (non-GAAP) | $ | 365,543 | $ | 355,350 | $ | 326,068 | $ | 310,054 | $ | 255,357 | $ | 365,543 | $ | 255,357 | |||||||
| Tangible assets<br> (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<br> 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<br><br> Balance | Interest<br><br> Income/<br><br> Expenses<br><br> (1) | Rate Earned/<br><br> Paid (1) | Average<br><br> Balance | Interest<br><br> Income/<br><br> Expenses<br><br> (1) | Rate Earned/<br><br> 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<br>a federal tax rate of 21%. | |||||||||||||||||
| --- | --- | |||||||||||||||||
| (2) | Nonaccrual loans are included in average amounts outstanding. | |||||||||||||||||
| --- | --- | |||||||||||||||||
| (3) | Represents the difference between the weighted average yield<br>on interest-earning assets and the weighted average cost of interest-bearing liabilities. | |||||||||||||||||
| --- | --- | |||||||||||||||||
| (4) | Represents net interest income on a fully tax equivalent basis<br>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<br><br> Balance | Interest<br><br> Income/<br><br> Expenses<br><br> (1) | Rate Earned/<br><br> Paid (1) | Average<br><br> Balance | Interest<br><br> Income/<br><br> Expenses<br><br> (1) | Rate Earned/<br><br> 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<br> 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<br>a federal tax rate of 21%. | |||||||||||||||||
| --- | --- | |||||||||||||||||
| (2) | Nonaccrual loans are included in average amounts outstanding. | |||||||||||||||||
| --- | --- | |||||||||||||||||
| (3) | Represents the difference between the weighted average yield<br>on interest-earning assets and the weighted average cost of interest-bearing liabilities. | |||||||||||||||||
| --- | --- | |||||||||||||||||
| (4) | Represents net interest income on a fully tax equivalent basis<br>as a percentage of average interest-earning assets. | |||||||||||||||||
| --- | --- |