Bank First (BFC) 8-K Bank First Announces Net Income for the Fourth Quarter of 2021

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@bankfirstwi.bank

FOR IMMEDIATE RELEASE

Bank First Announces Net Income for the Fourth Quarter of 2021

· Net income of $11.2 and $45.4 million for the three months and year ended December 31, 2021

· Earnings per common share of $1.46 and $5.92 for the three months and year ended December 31, 2021

· Annualized return on average assets of 1.53% and 1.60% for the three months and year ended December 31, 2021

· Quarterly cash dividend of $0.22 per share declared, an increase of 4.8% from prior-year fourth quarter quarterly cash dividend

MANITOWOC, Wis, January 18, 2022 -- Bank First Corporation (NASDAQ: BFC) (“Bank First” or the “Bank”), the holding company for Bank First, N.A., reported net income of $11.2 million, or $1.46 per share, for the fourth quarter of 2021, compared with net income of $11.5 million, or $1.49 per share, for the prior-year fourth quarter. For the year ended December 31, 2021, Bank First earned $45.4 million, or $5.92 per share, compared to $38.0 million, or $5.07 per share for the year ended December 31, 2020.

Operating Results

Net interest income (“NII”) during the fourth quarter of 2021 was $23.2 million, up $0.3 million from the previous quarter but down $1.2 million from the fourth quarter of 2020. NII for the year ended December 31, 2021 was $90.1 million, up from $86.8 million during the prior year.

As mentioned in previous releases, Bank First was a very active participant in the Paycheck Protection Program (“PPP”), a Small Business Administration (“SBA”) loan program aimed at supporting small business through the turbulent economic environment created by the COVID-19 pandemic (“COVID”). Bank First originated over $381.3 million in loans to new and existing customers under this program, $31.1 million of which remained unpaid and unforgiven as of December 31, 2021. Origination fees collected from PPP loan originations totaled over $14.6 million. Under accounting rules, the Bank recognizes these fees as an addition to NII over the contractual life of the related loan, with any remaining fee being fully recognized into NII if the loan is paid off or forgiven prior to the original maturity date. As is the case with any institution participating in PPP originations, this accounting treatment has caused significant variations in the Bank’s NII and interest margins quarter-to-quarter based on how many PPP loans are forgiven during the period. Unrecognized PPP origination fees totaled $1.1 million at December 31, 2021, compared to $2.2 million and $2.6 million at September 30, 2021 and December 31, 2020, respectively.

NII related to purchase accounting entries, resulting from our acquisitions of other institutions over the last several years, increased net income (after tax) during the fourth quarter of 2021 by $0.6 million, or $0.07 per share, compared to $0.5 million, or $0.07 per share, for the fourth quarter of 2020. For the years ended December 31, 2021 and 2020, the impact of these purchase accounting entries increased net income (after tax) by $1.5 million, or $0.19 per share, and $3.1 million, or $0.41 per share, respectively.

Net interest margin (“NIM”) was 3.47% for the fourth quarter of 2021, matching the prior quarter and lower than 4.01% for the fourth quarter of 2020. The aforementioned purchase accounting entries added 0.11%, 0.04% and 0.12% to NIM for each of these periods, respectively. NIM created by the presence of PPP activity during these periods added approximately 0.12%, 0.21% and 0.29%, respectively. NIM was 3.47% for the year ended December 31, 2021, including 0.08% from the impact of purchase accounting entries, compared to 3.84%, including 0.19% from the impact of purchase accounting entries, for the year ended December 31, 2020.

Bank First recorded a provision for loan losses of $0.6 million during the fourth quarter of 2021, compared to $1.7 million during the fourth quarter of 2020. Provision expense was $3.1 million for the year ended December 31, 2021 compared to $7.1 million for the year ended December 31, 2020. While provision expense was elevated during 2020 in response to uncertainty created by COVID and society’s response to it, actual asset quality metrics during the course of 2021, as further discussed later in this release, have remained strong and allowed for a reduction in provision expense during the current year.

Noninterest income was $5.7 million for the fourth quarter of 2021, compared to $6.7 million for the fourth quarter of 2020. Loan servicing income, which includes the impact of changes in the valuation of mortgage servicing rights (“MSR”) on the Bank’s balance sheet, totaled $1.6 million for the fourth quarter of 2021, comparing favorably to $0.2 million during the prior-year fourth quarter. During the fourth quarter of 2021 the Bank experienced a positive valuation adjustment to its MSR of $0.6 million compared to a negative valuation adjustment of $0.4 million during the fourth quarter of 2020, leading to much of the improvement year-over-year in this noninterest income classification. Gains on the sale of secondary market mortgage loans declined from $2.2 million during the fourth quarter of 2020 to $1.2 million during the fourth quarter of 2021. While these gains remained elevated through the final two quarters of 2021, they have declined from unprecedented profitability in this area between the fourth quarter of 2020 and the second quarter of 2021. Finally, the Bank recognized a $1.7 million gain due to the sale of a branch location during the fourth quarter of 2020. There was no similar event during 2021, leading to a decrease in other noninterest income.

Noninterest expense was $13.6 million in the fourth quarter of 2021, compared to $14.0 million during the fourth quarter of 2020. Occupancy, equipment and office expenses decreased by $0.4 million from elevated levels during the prior-year fourth quarter as the Bank completed several large scale remodel projects during that quarter. Data processing expense decreased $0.2 million from the prior-year fourth quarter, primarily due to expense incurred during the fourth quarter of 2020 from the significant PPP activity during that year. During the fourth quarter of 2021 the Bank incurred a $0.2 million charge-down on its sole foreclosed property owned, leaving a value of $10,000 on that property. This charge-down compared unfavorably to minor gains on sales of foreclosed property during the prior-year fourth quarter, leading to a negative $0.2 million variance year-over-year. Finally, other noninterest expense increased by $0.8 million, or 56.7%, from the prior-year fourth quarter. During the fourth quarter of 2021, Bank First incurred a one-time expense when it purchased a domain name from another institution for $0.8 million as part of a rebranding initiative.

Balance Sheet

Total assets were $2.94 billion at December 31, 2021, a $219.5 million increase from December 31, 2020. Total loans were $2.24 billion at December 31, 2021, up $44.8 million from December 31, 2020. Excluding PPP originations and repayments or forgiveness, loans grew by 9.1% over the trailing twelve months, including annualized growth of 10.5% during the fourth quarter. Total deposits, nearly all of which remain core deposits, were $2.53 billion at December 31, 2021, up $207.5 million from December 31, 2020. Noninterest-bearing demand deposits comprised 32.0% of the Bank’s total core deposits at December 31, 2021, compared to 31.2% at December 31, 2020. Time deposits, which typically carry the highest interest rates of all deposit products, comprised 10.1% of the Bank’s total core deposits at December 31, 2021, compared to 14.8% at December 31, 2020.

Asset Quality

Nonperforming assets at December 31, 2021 totaled $8.2 million, down from $12.1 million at the end of the previous quarter and $14.0 million at the end of 2020. Nonperforming assets to total assets ended 2021 at 0.28%, down from 0.42% at the end of the previous quarter and 0.52% at the end of 2020.

Capital Position

Stockholders’ equity totaled $322.7 million at December 31, 2021, an increase of $27.8 million from the end of 2020. Strong earnings served to increase capital while being offset by dividends totaling $8.7 million during the year ended December 31, 2021. Further reducing capital during 2021 was $7.9 million used to repurchase 112,141 shares of common stock. Tangible book value per share of Bank First’s common stock experienced an increase of 13.9% during the trailing twelve months.

Dividend Declaration

Bank First’s Board of Directors approved a quarterly cash dividend of $0.22 per common share, payable on April 6, 2022, to shareholders of record as of March 23, 2022.

Bank First Corporation provides financial services through its subsidiary, Bank First, which was incorporated in 1894. The bank is an independent community bank with 21 banking locations in Wisconsin. The bank has grown through both acquisitions and de novo branch expansion. The company employs approximately 287 full-time equivalent staff and has assets of approximately $2.9 billion. Bank First offers loan, deposit and treasury management products at each of its banking offices. 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, 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 cloud services. Further information about Bank First Corporation is available by clicking on the Investor Relations tab at www.BankFirstWI.bank.

# # #

Forward Looking Statements: This news release may contain certain “forward-looking statements” that represent Bank First Corporation’s expectations or beliefs concerning future events. Such forward-looking statements are about matters that are inherently subject to risks and uncertainties. Because of the risks and uncertainties inherent in forward looking statements, readers are cautioned not to place undue reliance on them, whether included in this news release or made elsewhere from time to time by Bank First Corporation or on its behalf. Bank First Corporation disclaims any obligation to update such forward-looking statements. In addition, statements regarding historical stock price performance are not indicative of or guarantees of future price performance.

Bank First Corporation

Consolidated Financial Summary (Unaudited)

(In thousands, except per share data)	At or for the Three Months Ended														At or for the Year Ended
	12/31/2021		9/30/2021			6/30/2021			3/31/2021			12/31/2020			12/31/2021			12/31/2020
Results of Operations:
Interest income	$	25,043	$	24,898		$	24,003		$	24,442		$	27,094		$	98,386		$	100,700
Interest expense		1,812		1,964			2,189			2,339			2,623			8,304			13,865
Net interest income		23,231		22,934			21,814			22,103			24,471			90,082			86,835
Provision for loan losses		600		650			950			900			1,650			3,100			7,125
Net interest income after provision for loan losses		22,631		22,284			20,864			21,203			22,821			86,982			79,710
Noninterest income		5,706		5,028			6,574			6,210			6,744			23,518			23,520
Noninterest expense		13,621		12,466			12,221			12,225			13,972			50,533			53,353
Income before income tax expense		14,716		14,846			15,217			15,188			15,593			59,967			49,877
Income tax expense		3,552		3,628			3,669			3,674			4,063			14,523			11,831
Net income	$	11,164	$	11,218		$	11,548		$	11,514		$	11,530		$	45,444		$	38,046
Earnings per common share - basic	$	1.46	$	1.46		$	1.50		$	1.49		$	1.49		$	5.92		$	5.07
Earnings per common share - diluted		1.46		1.46			1.50			1.49			1.49			5.92			5.07
Common Shares:
Basic weighted average		7,570,128		7,605,541			7,653,317			7,657,301			7,659,904			7,621,632			7,441,256
Diluted weighted average		7,595,052		7,624,791			7,668,740			7,677,976			7,682,101			7,643,167			7,481,077
Outstanding		7,616,540		7,641,771			7,688,795			7,729,216			7,709,497			7,616,540			7,709,497
Noninterest income / noninterest expense:
Service charges	$	1,574	$	1,491		$	1,596		$	1,467		$	1,586		$	6,128		$	5,003
Income from Ansay		383		756			723			725			169			2,587			2,740
Income from UFS		776		751			663			366			599			2,556			3,066
Loan servicing income		1,557		599			1,178			505			194			3,839			1,420
Net gain on sales of mortgage loans		1,167		1,206			2,187			2,811			2,214			7,371			5,310
Net gain (loss) on sales of securities		-		(3	)		-			-			-			(3	)		3,233
Other noninterest income		249		228			227			336			1,982			1,040			2,748
Total noninterest income	$	5,706	$	5,028		$	6,574		$	6,210		$	6,744		$	23,518		$	23,520
Personnel expense	$	7,307	$	6,996		$	7,121		$	7,091		$	7,604		$	28,515		$	27,273
Occupancy, equipment and office		950		1,070			968			1,210			1,352			4,198			4,719
Data processing		1,334		1,259			1,358			1,393			1,519			5,344			5,515
Postage, stationery and supplies		181		204			131			197			204			713			872
Net (gain) loss on other real estate owned		186		-			(73	)		(133	)		(16	)		(20	)		1,395
Advertising		75		50			53			49			61			227			226
Charitable contributions		135		121			152			126			214			534			574
Outside service fees		776		741			804			755			1,029			3,076			4,112
Amortization of intangibles		352		351			351			351			522			1,405			1,636
Penalty for early extinguishment of debt		-		-			-			-			-			-			1,323
Other noninterest expense		2,325		1,674			1,356			1,186			1,483			6,541			5,708
Total noninterest expense	$	13,621	$	12,466		$	12,221		$	12,225		$	13,972		$	50,533		$	53,353

Bank First Corporation

Consolidated Financial Summary (Unaudited)

(In thousands, except per share data)	At or for the Three Months Ended															At or for the Year Ended
	12/31/2021			9/30/2021			6/30/2021			3/31/2021			12/31/2020			12/31/2021			12/31/2020
Period-end balances:
Cash and cash equivalents	$	296,860		$	299,953		$	251,071		$	261,174		$	170,219		$	296,860		$	170,219
Investment securities available-for-sale, at fair value		212,689			148,376			153,818			167,940			165,039			212,689			165,039
Investment securities held-to-maturity, at cost		5,911			5,912			5,912			5,934			6,669			5,911			6,669
Loans		2,235,515			2,208,915			2,225,217			2,228,892			2,191,460			2,235,515			2,191,460
Allowance for loan losses		(20,315	)		(20,237	)		(19,547	)		(18,531	)		(17,658	)		(20,315	)		(17,658	)
Premises and equipment		49,461			44,181			43,503			43,606			43,183			49,461			43,183
Goodwill and other intangibles, net		59,392			59,743			60,095			60,561			60,912			59,392			60,912
Other assets		98,039			99,762			98,881			96,623			98,192			98,039			98,192
Total assets		2,937,552			2,846,605			2,818,950			2,846,199			2,718,016			2,937,552			2,718,016
																	-
Deposits		2,528,440			2,472,258			2,446,654			2,448,035			2,320,963			2,528,440			2,320,963
Securities sold under repurchase agreements		41,122			17,402			21,679			47,631			36,377			41,122			36,377
Borrowings		25,511			26,679			26,697			30,467			40,969			25,511			40,969
Other liabilities		19,826			15,004			12,490			16,624			24,850			19,826			24,850
Total liabilities		2,614,899			2,531,343			2,507,520			2,542,757			2,423,159			2,614,899			2,423,159
Stockholders' equity		322,653			315,262			311,430			303,442			294,857			322,653			294,857
Book value per common share		42.36			41.26			40.50			39.26			38.25			42.36			38.25
Tangible book value per common share		34.56			33.44			32.69			31.42			30.35			34.56			30.35
Average balances:
Loans	$	2,207,615		$	2,218,324		$	2,247,026		$	2,196,142		$	2,206,207		$	2,217,305		$	2,032,157
Interest-earning assets		2,695,175			2,659,584			2,633,850			2,547,783			2,465,713			2,634,565			2,308,095
Total assets		2,901,685			2,861,959			2,835,580			2,750,471			2,671,967			2,837,793			2,504,682
Deposits		2,513,918			2,479,799			2,453,156			2,355,888			2,316,793			2,451,203			2,135,107
Interest-bearing liabilities		1,759,437			1,738,895			1,723,395			1,694,711			1,663,642			1,729,313			1,588,650
Goodwill and other intangibles, net		59,614			59,969			60,363			60,782			60,836			60,178			56,191
Stockholders' equity		318,837			313,868			308,201			300,331			289,916			310,370			265,504
Paycheck Protection Program ("PPP") loan information
PPP Loans (period end)	$	31,100		$	62,639		$	127,277		$	188,221		$	172,424		$	31,100		$	172,424
PPP Loan Deferred Origination Fees (period end)		1,080			2,243			4,252			4,552			2,573			1,080			2,573
PPP Loans (average during the period)		50,602			95,645			171,036			174,242			235,325			122,468			183,950
Interest income recognized during the period (includes
recognized origination fees)		1,290			2,251			1,922			2,368			3,833			7,831			8,739
Financial ratios:
Return on average assets		1.53	%		1.57	%		1.63	%		1.67	%		1.71	%		1.60	%		1.52	%
Return on average common equity		13.89	%		14.30	%		14.99	%		15.34	%		15.78	%		14.64	%		14.33	%
Average equity to average assets		10.99	%		10.97	%		10.87	%		10.92	%		10.85	%		10.94	%		10.60	%
Stockholders' equity to assets		10.98	%		11.08	%		11.05	%		10.66	%		10.85	%		10.98	%		10.85	%
Tangible equity to tangible assets		9.15	%		9.17	%		9.11	%		8.72	%		8.80	%		9.15	%		8.80	%
Loan yield		4.25	%		4.25	%		4.13	%		4.34	%		4.62	%		4.21	%		4.69	%
Earning asset yield		3.74	%		3.76	%		3.71	%		3.95	%		4.44	%		3.79	%		4.44	%
Cost of funds		0.41	%		0.45	%		0.51	%		0.56	%		0.63	%		0.48	%		0.87	%
Net interest margin, taxable equivalent		3.47	%		3.47	%		3.37	%		3.57	%		4.01	%		3.47	%		3.84	%
Net loan charge-offs to average loans		0.02	%		-0.01	%		-0.01	%		0.00	%		0.01	%		0.02	%		0.04	%
Nonperforming loans to total loans		0.37	%		0.53	%		0.55	%		0.63	%		0.57	%		0.37	%		0.57	%
Nonperforming assets to total assets		0.28	%		0.42	%		0.45	%		0.52	%		0.52	%		0.28	%		0.52	%
Allowance for loan losses to loans		0.91	%		0.92	%		0.88	%		0.83	%		0.81	%		0.91	%		0.81	%

Bank First Corporation

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

	Three Months Ended
	December 31, 2021									December 31, 2020
	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	$	2,117,319		$	90,468			4.27	%	$	2,100,764		$	97,767			4.65	%
Tax-exempt		90,296			4,152			4.60	%		105,443			5,286			5.01	%
Securities
Taxable (available for sale)		119,901			3,311			2.76	%		107,224			3,840			3.58	%
Tax-exempt (available for sale)		71,804			2,179			3.03	%		73,094			2,276			3.11	%
Tax-exempt (held to maturity)		5,912			151			2.55	%		6,669			163			2.44	%
Cash and due from banks		289,943			454			0.16	%		72,519			76			0.10	%
Total interest-earning assets		2,695,175			100,715			3.74	%		2,465,713			109,408			4.44	%
Non interest-earning assets		226,891									223,179
Allowance for loan losses		(20,381	)								(16,925	)
Total assets	$	2,901,685								$	2,671,967
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits
Checking accounts	$	203,363		$	253			0.12	%	$	195,094		$	295			0.15	%
Savings accounts		550,402			1,835			0.33	%		407,287			1,426			0.35	%
Money market accounts		687,353			1,911			0.28	%		625,958			2,143			0.34	%
Certificates of deposit		248,318			2,082			0.84	%		354,797			5,248			1.48	%
Brokered Deposits		12,079			349			2.89	%		19,435			556			2.86	%
Total interest bearing deposits		1,701,515			6,430			0.38	%		1,602,571			9,668			0.60	%
Other borrowed funds		57,922			759			1.31	%		61,071			766			1.25	%
Total interest-bearing liabilities		1,759,437			7,189			0.41	%		1,663,642			10,434			0.63	%
Non-interest bearing liabilities
Demand Deposits		812,403									714,222
Other liabilities		11,008									4,187
Total Liabilities		2,582,848									2,382,051
Shareholders' equity		318,837									289,916
Total liabilities & sharesholders' equity	$	2,901,685								$	2,671,967
Net interest income on a fully taxable equivalent basis					93,526									98,974
Less taxable equivalent adjustment					(1,361	)								(1,622	)
Net interest income				$	92,165								$	97,352
Net interest spread (3)								3.33	%								3.81	%
Net interest margin (4)								3.47	%								4.01	%

(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 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

	For the Year Ended
	December 31, 2021									December 31, 2020
	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	$	2,128,327		$	90,172			4.24	%	$	1,918,490		$	90,698			4.73	%
Tax-exempt		88,978			4,113			4.62	%		113,667			5,791			5.09	%
Securities
Taxable (available for sale)		103,277			2,788			2.70	%		114,392			3,142			2.75	%
Tax-exempt (available for sale)		70,864			2,207			3.11	%		67,903			2,170			3.20	%
Taxable (held to maturity)		-			-			-			9,068			216			2.38	%
Tax-exempt (held to maturity)		6,098			155			2.54	%		8,422			220			2.61	%
Cash and due from banks		237,021			310			0.13	%		76,153			181			0.24	%
Total interest-earning assets		2,634,565			99,745			3.79	%		2,308,095			102,418			4.44	%
Non interest-earning assets		222,548									211,387
Allowance for loan losses		(19,320	)								(14,800	)
Total assets	$	2,837,793								$	2,504,682
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits
Checking accounts	$	209,970		$	252			0.12	%	$	194,718		$	669			0.34	%
Savings accounts		497,958			1,773			0.36	%		356,091			1,792			0.50	%
Money market accounts		664,591			2,115			0.32	%		563,847			3,076			0.55	%
Certificates of deposit		278,602			2,967			1.06	%		367,054			6,405			1.74	%
Brokered Deposits		14,718			420			2.85	%		18,428			531			2.88	%
Total interest bearing deposits		1,665,839			7,527			0.45	%		1,500,138			12,473			0.83	%
Other borrowed funds		63,474			777			1.22	%		88,512			1,392			1.57	%
Total interest-bearing liabilities		1,729,313			8,304			0.48	%		1,588,650			13,865			0.87	%
Non-interest bearing liabilities
Demand Deposits		785,364									634,969
Other liabilities		12,746									15,559
Total Liabilities		2,527,423									2,239,178
Shareholders' equity		310,370									265,504
Total liabilities & sharesholders' equity	$	2,837,793								$	2,504,682
Net interest income on a fully taxable equivalent basis					91,441									88,553
Less taxable equivalent adjustment					(1,359	)								(1,718	)
Net interest income				$	90,082								$	86,835
Net interest spread (3)								3.31	%								3.56	%
Net interest margin (4)								3.47	%								3.84	%

(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 cost of interest-bearing liabilities.

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