Bank First (BFC) 8-K Bank First Announces Net Income for the First Quarter of 2022

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 First Quarter of 2022

· Net income of $10.2 million and earnings per common share of $1.34 for the three months ended March 31, 2022

· Annualized return on average assets of 1.27% for the three months ended March 31, 2022

· Annualized return on average common equity of 12.62% for the three months ended March 31, 2022

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

MANITOWOC, Wis, April 19, 2022 -- Bank First Corporation (NASDAQ: BFC) (“Bank First” or the “Bank”), the holding company for Bank First, N.A., reported net income of $10.2 million, or $1.34 per share, for the first quarter of 2022, compared with net income of $11.5 million, or $1.49 per share, for the prior-year first quarter.

Operating Results

Net interest income during the first quarter of 2022 was $22.3 million, down $0.9 million from the previous quarter but up $0.2 million from the first quarter of 2021. Interest income on loans originated through the Small Business Administration’s Paycheck Protection Program (“PPP”) totaled $0.7 million during the first quarter of 2022, compared to $1.3 million during the previous quarter and $2.4 million during the first quarter of 2021.

During the first quarter of 2022 the Bank engaged in a strategy to enhance net interest income, utilizing $300.0 million in short-term borrowings from the Federal Home Loan Bank and investing these funds in short-term, liquid, interest-earning assets. This strategy increased net interest income during the quarter by $0.1 million.

Interest income related to purchase accounting entries, resulting from our acquisitions of other institutions over the last several years, increased net interest income during the first quarter of 2022 by $0.3 million, or $0.03 per share after tax, compared to $0.7 million and $0.5 million, or $0.07 and $0.05 per share after tax, for the fourth and first quarters of 2021, respectively.

Excluding income from PPP loans and the impact of purchase accounting entries, net interest income increased $2.1 million in the first quarter year-over-year. Excluding income from PPP loans, the impact of purchase accounting entries, and the impact of two fewer earning days in the current quarter, net interest income increased $0.6 million quarter-over-quarter.

Net interest margin was 3.06% for the first quarter of 2022, compared to 3.47% for the previous quarter and 3.57% for the first quarter of 2021. The aforementioned short-term net interest income enhancement strategy decreased net interest margin by 0.29% during the quarter. Purchase loan accounting entries added 0.04%, 0.11% and 0.09% to net interest margin for each of these periods, respectively.

Bank First recorded a provision for loan losses of $1.2 million during the first quarter of 2022, compared to $0.6 million and $0.9 million during the fourth and first quarters of 2021, respectively. Significant first quarter loan growth, as discussed later in this release, led to the need for a higher provision for loan losses. Through the first three months of 2022, recoveries of previously charged-off loans exceeded current charge-offs by $0.2 million. This compared favorably to negligible net charge-offs during the first three months of 2021.

Noninterest income was $5.2 million during the first quarter of 2022, compared to $5.5 million and $6.3 million during the fourth and first quarters of 2021, respectively. Income from our investment in Ansay & Associates LLC increased $0.4 million from the prior quarter, and $0.1 million from the prior-year first quarter. A slowdown in residential mortgage lending, experienced across the banking industry, led to a decline in gains on sales of mortgage loans to the secondary market of $0.5 million from the prior quarter, and $2.1 million from the prior-year first quarter. Finally, gains on sales of other real estate owned during the quarter totaled $0.2 million, comparing favorably to losses of $0.2 million in the prior quarter and gains of $0.1 million in the prior-year first quarter. The Bank ended the first quarter of 2022 with no other real estate property owned.

Noninterest expense was $12.7 million in the first quarter of 2022, compared to $13.4 million and $12.4 million during the fourth and first quarters of 2021, respectively. Personnel expense totaled $7.2 million for the first quarter of 2022, compared to $7.3 million and $7.1 million for the fourth and first quarters of 2021, respectively. Outside service fees totaled $1.2 million in the first quarter of 2022, compared to $0.8 million for the fourth and first quarters of 2021. Outside service fees included $0.5 million in expenses related to the pending acquisition of Denmark Bancshares, Inc. Finally, other noninterest expense during the first quarter of 2022 declined by $1.1 million from the prior 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. No similar expense was incurred during the current quarter, leading to the positive variance quarter-over-quarter.

Balance Sheet

Total assets were $2.92 billion at March 31, 2022, a $12.6 million decrease from December 31, 2021, but up $78.7 million from March 31, 2021. Total loans were $2.32 billion at March 31, 2022, up $81.2 million from December 31, 2021, and up $87.8 million from March 31, 2021. Excluding PPP originations and repayments or forgiveness, loans grew by 12.7% over the trailing twelve months. Annualized loan growth during the first quarter of 2022 net of these same items amounted to 17.6%. Total deposits, nearly all of which remain core deposits, were $2.56 billion at March 31, 2022, up $28.7 million from December 31, 2021, and up $109.1 million from March 31, 2021. Noninterest-bearing demand deposits comprised 31.4% of the Bank’s total core deposits at March 31, 2022.

Asset Quality

Nonperforming assets at March 31, 2022, totaled $5.4 million, down from $8.2 million and $14.7 million at the end of the fourth and first quarters of 2021, respectively. Nonperforming assets to total assets ended the first quarter of 2022 at 0.19%, down from 0.28% at the end of the prior quarter and down from 0.52% from the end of the prior-year first quarter.

Capital Position

Stockholders’ equity totaled $318.3 million at March 31, 2022, a decrease of $4.4 million from the previous quarter but an increase of $14.9 million from March 31, 2021. Interest rate movements during the current quarter significantly 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 $8.2 million. Dividends totaling $1.7 million and share repurchases totaling $5.0 million further reduced capital. Strong earnings served to partially offset these items, increasing capital by $10.2 million.

Dividend Declaration

Bank First’s Board of Directors approved a quarterly cash dividend of $0.22 per common share, payable on July 6, 2022, to shareholders of record as of June 22, 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 279 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.BankFirst.com.

# # #

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

These forward-looking statements are not historical facts, and are based upon current expectations, estimates, and projections, many of which, by their nature, are inherently uncertain and beyond Bank First’s control. The inclusion of these forward-looking statements should not be regarded as a representation by Bank First or any other person that such expectations, estimates, and projections will be achieved. Accordingly, Bank First cautions shareholders and investors that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, and uncertainties that are difficult to predict. Actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. A number of factors could cause actual results to differ materially from those contemplated by the forward-looking statements including, without limitation, (1) business and economic conditions nationally, regionally and in our target markets, particularly in Wisconsin and the geographic areas in which we operate, (2) changes in government interest rate policies, (3) our ability to effectively manage problem credits, (4) the risk that the cost savings and any revenue synergies from the Denmark merger may not be realized or may take longer than anticipated to be realized, (5) disruption from the Denmark merger with customer, supplier, employee or other business partner relationships, (6) the occurrence of any event, change, or other circumstances that could give rise to the termination of the merger agreement with Denmark, (7) the failure to obtain necessary regulatory approvals for the Denmark merger, (8) the failure to obtain the approval of Bank First’s and Denmark’s shareholders in connection with the Denmark merger, (9) the possibility that the costs, fees, expenses, and charges related to the Denmark merger may be greater than anticipated, including as a result of unexpected or unknown factors, events, or liabilities, (10) the failure of the closing conditions to the Denmark merger to be satisfied, or any unexpected delay in closing the Denmark merger, (11) the risks related to the integrations of the combined businesses following the Denmark merger, including the risk that the integrations will be materially delayed or will be more costly or difficult than expected, (12) the diversion of management time on issues related to the Denmark merger, (13) the ability of Bank First to effectively manage the larger and more complex operations of the combined company following the Denmark merger, (14) the dilution caused by Bank First’s issuance of additional shares of its common stock in the Denmark merger, (15) the risks associated with Bank First’s pursuit of future acquisitions, (16) reputational risk and the reaction of the parties’ respective customers to the Denmark merger, (17) Bank First’s ability to successful execute its various business strategies, including its ability to execute on potential acquisition opportunities, (18) the risk of potential litigation or regulatory action related to the Denmark merger, and (19) general competitive, economic, political, and market conditions.

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

Bank First Corporation
Consolidated Financial Summary (Unaudited)
(In thousands, except per share data)	At or for the Three Months Ended
	3/31/2022			12/31/2021			9/30/2021			6/30/2021			3/31/2021
Results of Operations:
Interest income	$	24,220		$	25,043		$	24,898		$	24,003		$	24,442
Interest expense		1,930			1,812			1,964			2,189			2,339
Net interest income		22,290			23,231			22,934			21,814			22,103
Provision for loan losses		1,200			600			650			950			900
Net interest income after provision for loan losses		21,090			22,631			22,284			20,864			21,203
Noninterest income		5,234			5,520			5,031			6,647			6,343
Noninterest expense		12,731			13,435			12,469			12,294			12,358
Income before income tax expense		13,593			14,716			14,846			15,217			15,188
Income tax expense		3,410			3,553			3,628			3,669			3,674
Net income	$	10,183		$	11,163		$	11,218		$	11,548		$	11,514
Earnings per common share - basic	$	1.34		$	1.46		$	1.46		$	1.50		$	1.49
Earnings per common share - diluted		1.34			1.46			1.46			1.50			1.49
Common Shares:
Basic weighted average		7,540,264			7,570,128			7,605,541			7,653,317			7,657,301
Diluted weighted average		7,559,844			7,595,052			7,624,791			7,668,740			7,677,976
Outstanding		7,570,766			7,616,540			7,641,771			7,688,795			7,729,216
Noninterest income / noninterest expense:
Service charges	$	1,422		$	1,574		$	1,491		$	1,596		$	1,467
Income from Ansay		826			383			756			723			725
Income from UFS		705			776			751			663			366
Loan servicing income		1,062			1,557			599			1,178			505
Net gain on sales of mortgage loans		671			1,167			1,206			2,187			2,811
Net gain (loss) on other real estate owned		171			(186	)		-			73			133
Other noninterest income		377			249			228			227			336
Total noninterest income	$	5,234		$	5,520		$	5,031		$	6,647		$	6,343
Personnel expense	$	7,175		$	7,307		$	6,996		$	7,121		$	7,091
Occupancy, equipment and office		1,115			950			1,070			968			1,210
Data processing		1,345			1,334			1,259			1,358			1,393
Postage, stationery and supplies		183			181			204			131			197
Advertising		89			75			50			53			49
Charitable contributions		168			135			121			152			126
Outside service fees		1,172			776			741			804			755
Net loss on sales of securities		-			-			3			-			-
Amortization of intangibles		293			352			351			351			351
Other noninterest expense		1,191			2,325			1,674			1,356			1,186
Total noninterest expense	$	12,731		$	13,435		$	12,469		$	12,294		$	12,358
Period-end balances:
Cash and cash equivalents	$	107,359		$	296,860		$	299,953		$	251,071		$	261,174
Investment securities available-for-sale, at fair value		297,063			212,689			148,376			153,818			167,940
Investment securities held-to-maturity, at cost		5,841			5,911			5,912			5,912			5,934
Loans		2,316,688			2,235,515			2,208,915			2,225,217			2,228,892
Allowance for loan losses		(21,749	)		(20,315	)		(20,237	)		(19,547	)		(18,531	)
Premises and equipment		50,068			49,461			44,181			43,503			43,606
Goodwill and core deposit intangible, net		59,099			59,392			59,743			60,095			60,561
Mortgage servicing rights		5,466			5,016			4,345			4,738			3,726
Other assets		105,101			93,023			95,417			94,143			92,897
Total assets		2,924,936			2,937,552			2,846,605			2,818,950			2,846,199
Deposits		2,557,106			2,528,440			2,472,258			2,446,654			2,448,035
Securities sold under repurchase agreements		13,130			41,122			17,402			21,679			47,631
Borrowings		25,247			25,511			26,679			26,697			30,467
Other liabilities		11,150			19,826			15,004			12,490			16,624
Total liabilities		2,606,633			2,614,899			2,531,343			2,507,520			2,542,757
Stockholders' equity		318,303			322,653			315,262			311,430			303,442
Book value per common share		42.04			42.36			41.26			40.50			39.26
Tangible book value per common share		34.24			34.56			33.44			32.69			31.42
Average balances:
Loans	$	2,271,956		$	2,207,615		$	2,218,324		$	2,247,026		$	2,196,142
Interest-earning assets		3,001,174			2,695,175			2,659,584			2,633,850			2,547,783
Total assets		3,209,202			2,901,685			2,861,959			2,835,580			2,750,471
Deposits		2,543,471			2,513,918			2,479,799			2,453,156			2,355,888
Interest-bearing liabilities		2,080,172			1,759,437			1,738,895			1,723,395			1,694,711
Goodwill and other intangibles, net		59,285			59,614			59,969			60,363			60,782
Stockholders' equity		322,852			318,837			313,868			308,201			300,331
Paycheck Protection Program ("PPP") loan information
PPP Loans (period end)	$	16,904		$	31,100		$	62,639		$	127,277		$	188,221
PPP Loan Deferred Origination Fees (period end)		477			1,080			2,243			4,252			4,552
PPP Loans (average during the period)		23,552			50,602			95,645			171,036			174,242
Interest income recognized during the period (includes recognized origination fees)		662			1,290			2,251			1,922			2,368
Financial ratios:
Return on average assets		1.27	%		1.53	%		1.57	%		1.63	%		1.67	%
Return on average common equity		12.62	%		13.89	%		14.30	%		14.99	%		15.34	%
Average equity to average assets		10.06	%		10.99	%		10.97	%		10.87	%		10.92	%
Stockholders' equity to assets		10.88	%		10.98	%		11.08	%		11.05	%		10.66	%
Tangible equity to tangible assets		9.04	%		9.15	%		9.17	%		9.11	%		8.72	%
Loan yield		4.02	%		4.25	%		4.25	%		4.13	%		4.34	%
Earning asset yield		3.32	%		3.74	%		3.76	%		3.71	%		3.95	%
Cost of funds		0.38	%		0.41	%		0.45	%		0.51	%		0.56	%
Net interest margin, taxable equivalent		3.06	%		3.47	%		3.47	%		3.37	%		3.57	%
Net loan charge-offs to average loans		-0.04	%		0.02	%		-0.01	%		-0.01	%		0.00	%
Nonperforming loans to total loans		0.24	%		0.37	%		0.53	%		0.55	%		0.63	%
Nonperforming assets to total assets		0.19	%		0.28	%		0.42	%		0.45	%		0.52	%
Allowance for loan losses to loans		0.94	%		0.91	%		0.92	%		0.88	%		0.83	%

Bank First Corporation
Average assets, liabilities and stockholders' equity, and average rates earned or paid
	Three Months Ended
	March 31, 2022									March 31, 2021
	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	$	2,174,967		$	87,150			4.01	%	$	2,102,261		$	90,976			4.33	%
Tax-exempt		96,989			4,194			4.32	%		93,881			4,331			4.61	%
Securities
Taxable (available for sale)		193,300			5,225			2.70	%		100,566			2,657			2.64	%
Tax-exempt (available for sale)		84,513			2,152			2.55	%		71,283			2,259			3.17	%
Tax-exempt (held to maturity)		5,905			152			2.57	%		6,661			166			2.49	%
Cash and due from banks		445,500			716			0.16	%		173,131			158			0.09	%
Total interest-earning assets		3,001,174			99,589			3.32	%		2,547,783			100,547			3.95	%
Non interest-earning assets		228,787									220,723
Allowance for loan losses		(20,759	)								(18,035	)
Total assets	$	3,209,202								$	2,750,471
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits
Checking accounts	$	237,785		$	272			0.11	%	$	221,489		$	256			0.12	%
Savings accounts		572,394			1,918			0.34	%		434,697			1,571			0.36	%
Money market accounts		683,401			1,915			0.28	%		626,857			2,137			0.34	%
Certificates of deposit		237,091			1,891			0.80	%		316,677			4,240			1.34	%
Brokered Deposits		11,685			338			2.89	%		18,249			516			2.83	%
Total interest bearing deposits		1,742,356			6,334			0.36	%		1,617,969			8,720			0.54	%
Other borrowed funds		337,816			1,491			0.44	%		76,742			767			1.00	%
Total interest-bearing liabilities		2,080,172			7,825			0.38	%		1,694,711			9,487			0.56	%
Non-interest bearing liabilities
Demand Deposits		801,115									737,919
Other liabilities		5,063									17,510
Total Liabilities		2,886,350									2,450,140
Shareholders' equity		322,852									300,331
Total liabilities & sharesholders' equity	$	3,209,202								$	2,750,471
Net interest income on a fully taxable equivalent basis					91,764									91,060
Less taxable equivalent adjustment					(1,365	)								(1,419	)
Net interest income				$	90,399								$	89,641
Net interest spread (3)								2.94	%								3.39	%
Net interest margin (4)								3.06	%								3.57	%

(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.