Bank First Corp [BFC] Filings

10-Q 1 bfc-20230930x10q.htm 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023


	☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ____________

Commission file number: 001-38676

BANK FIRST CORPORATION

(Exact name of registrant as specified in its charter)


WISCONSIN		39-1435359
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)


402 North 8^th Street, Manitowoc, Wisconsin		54220
(Address of principal executive offices)		(Zip Code)

(920) 652-3100

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧ No ◻

Indicate by check mark whether the registrant has submitted electronically, if any, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ⌧ No ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☒
Non-accelerated filer ☐	Smaller reporting company ☐
	Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name on each exchange on which registered
Common Stock, par value $0.01 per share	BFC	The Nasdaq Stock Market LLC

The number of shares of the issuer’s common stock, par value $0.01, outstanding as of November 9, 2023 was 10,365,891 shares.

Table of Contents

TABLE OF CONTENTS


		Page Number
Part I. Financial Information		3
ITEM 1.	Financial Statements	3
	Consolidated Balance Sheets – September 30, 2023 (unaudited) and December 31, 2022	3
	Consolidated Statements of Income – Three and Nine Months Ended September 30, 2023 and 2022 (unaudited)	4
	Consolidated Statements of Comprehensive Income – Three and Nine Months Ended September 30, 2023 and 2022 (unaudited)	5
	Consolidated Statements of Changes in Stockholders’ Equity – Three and Nine Months Ended September 30, 2023 and 2022 (unaudited)	6
	Consolidated Statements of Cash Flows – Nine Months Ended September 30, 2023 and 2022 (unaudited)	7
	Notes to Unaudited Consolidated Financial Statements	9
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	32
ITEM 3.	Quantitative and Qualitative Disclosures about Market Risk	59
ITEM 4.	Controls and Procedures	61
Part II. Other Information		61
ITEM 1.	Legal Proceedings	61
ITEM 1A.	Risk Factors	61
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	62
ITEM 3.	Defaults Upon Senior Securities	62
ITEM 4.	Mine Safety Disclosures	62
ITEM 5.	Other Information	62
ITEM 6.	Exhibits	63
Signatures		64

Table of Contents

PART I – FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS:

BANK FIRST CORPORATION

Consolidated Balance Sheets

(In thousands, except share and per share data)



	September 30, 2023		December 31, 2022
		(Unaudited)		(Audited)

Assets
Cash and due from banks	$	46,332	$	51,524
Interest-bearing deposits		29,444		67,827
Cash and cash equivalents		75,776		119,351
Securities held to maturity, at amortized cost ($74,888 and $43,770 fair value at September 30, 2023 and December 31, 2022, respectively)		77,154		45,097
Securities available for sale, at fair value ($205,602 and $325,960 amortized cost at September 30, 2023 and December 31, 2022, respectively)		179,046		304,637
Loans held for sale		1,155		648
Loans		3,355,549		2,893,978
Allowance for credit losses - loans ("ACL-Loans")		(43,404)		(22,680)
Loans, net		3,312,145		2,871,298
Premises and equipment, net		70,994		56,448
Goodwill		175,106		110,206
Other investments		21,542		16,495
Cash value of life insurance		60,889		46,050
Core deposit intangibles, net		28,599		16,829
Mortgage servicing rights ("MSR")		13,733		9,582
Other real estate owned (“OREO”)		1,844		2,520
Investment in minority-owned subsidiaries		46,203		44,180
Other assets		23,333		17,091
TOTAL ASSETS	$	4,087,519	$	3,660,432
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Interest-bearing deposits	$	2,333,452	$	2,126,137
Noninterest-bearing deposits		1,064,841		934,092
Total deposits		3,398,293		3,060,229
Securities sold under repurchase agreements		17,191		97,196
Notes payable		35,847		1,929
Subordinated notes		23,500		23,500
Junior subordinated debentures		10,972		—
Other liabilities		24,387		24,475
Total liabilities		3,510,190		3,207,329
Stockholders’ equity:
Serial preferred stock - $0.01 par value
Authorized - 5,000,000 shares		—		—
Common stock - $0.01 par value
Authorized - 20,000,000 shares
Issued - 11,515,130 and 10,064,858 shares as of September 30, 2023 and December 31, 2022, respectively
Outstanding - 10,379,071 and 9,021,697 shares as of September 30, 2023 and December 31, 2022, respectively		115		101
Additional paid-in capital		333,254		218,263
Retained earnings		316,212		295,496
Treasury stock, at cost - 1,136,059 and 1,043,161 shares as of September 30, 2023 and December 31, 2022, respectively		(52,497)		(45,191)
Accumulated other comprehensive loss		(19,755)		(15,566)
Total stockholders’ equity		577,329		453,103
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	4,087,519	$	3,660,432

See accompanying notes to consolidated financial statements.

Table of Contents

ITEM 1. Financial Statements Continued:

BANK FIRST CORPORATION

Consolidated Statements of Income

(In thousands, except per share data) (Unaudited)


	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022

Interest income:
Loans, including fees	$	43,552	$	28,353	$	124,308	$	74,131
Securities:
Taxable		2,384		1,590		6,405		4,266
Tax-exempt		243		453		789		1,339
Other		810		344		2,318		1,044
Total interest income		46,989		30,740		133,820		80,780
Interest expense:
Deposits		11,644		2,637		29,177		5,939
Securities sold under repurchase agreements		252		100		1,383		104
Borrowed funds		1,035		310		2,696		1,274
Total interest expense		12,931		3,047		33,256		7,317
Net interest income		34,058		27,693		100,564		73,463
Provision for credit losses		—		—		4,182		1,700
Net interest income after provision for credit losses		34,058		27,693		96,382		71,763
Noninterest income:
Service charges		1,821		1,383		5,186		4,246
Income from Ansay and Associates, LLC (“Ansay”)		791		671		2,812		2,316
Income from UFS, LLC (“UFS”)		784		852		2,444		2,120
Loan servicing income		734		491		2,119		1,377
Valuation adjustment on MSR		229		885		460		2,846
Net gain on sales of mortgage loans		248		264		624		1,338
Other		647		620		2,012		1,562
Total noninterest income		5,254		5,166		15,657		15,805
Noninterest expense:
Salaries, commissions, and employee benefits		10,216		10,812		29,998		24,993
Occupancy		1,455		1,176		4,363		3,505
Data processing		2,153		1,577		6,111		4,353
Postage, stationery, and supplies		244		215		848		542
Net loss (gain) on sales and valuations of OREO		53		—		542		(146)
Net loss on sale of securities		—		—		75		—
Advertising		60		61		226		205
Charitable contributions		229		150		680		553
Outside service fees		1,438		2,538		4,987		5,096
Amortization of intangibles		1,626		751		4,720		1,338
Other		2,173		1,615		6,707		4,260
Total noninterest expense		19,647		18,895		59,257		44,699
Income before provision for income taxes		19,665		13,964		52,782		42,869
Provision for income taxes		4,861		3,431		13,166		10,499
Net Income	$	14,804	$	10,533	$	39,616	$	32,370
Earnings per share - basic	$	1.43	$	1.26	$	3.89	$	4.15
Earnings per share - diluted	$	1.43	$	1.26	$	3.89	$	4.15

See accompanying notes to unaudited consolidated financial statements

Table of Contents

ITEM 1. Financial Statements Continued:

BANK FIRST CORPORATION

Consolidated Statements of Comprehensive Income

(In thousands) (Unaudited)


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022

Net Income	$	14,804	$	10,533	$	39,616	$	32,370
Other comprehensive income (loss):
Unrealized losses on available for sale securities:
Unrealized holding losses arising during period		(6,093)		(9,188)		(5,308)		(30,613)
Amortization of unrealized holding gains on securities transferred from available for sale to held to maturity		—		—		—		(1)
Reclassification adjustment for losses included in net income		—		—		75		—
Income tax benefit		1,276		2,480		1,044		8,266
Total other comprehensive loss		(4,817)		(6,708)		(4,189)		(22,348)
Comprehensive income	$	9,987	$	3,825	$	35,427	$	10,022

See accompanying notes to unaudited consolidated financial statements.

Table of Contents

ITEM 1. Financial Statements Continued:

BANK FIRST CORPORATION

Consolidated Statement of Stockholders’ Equity

(In thousands, except share and per share data) (Unaudited)


											Accumulated
	Serial				Additional						Other		Total
	Preferred		Common		Paid-in		Retained		Treasury		Comprehensive		Stockholders'
	Stock		Stock		Capital		Earnings		Stock		Income (loss)		Equity

Balance at January 1, 2022	$	—	$	85	$	93,149	$	258,104	$	(32,294)	$	3,609	$	322,653
Net income		—		—		—		10,183		—		—		10,183
Other comprehensive loss		—		—		—		—		—		(8,199)		(8,199)
Purchase of treasury stock		—		—		—		—		(5,018)		—		(5,018)
Sale of treasury stock		—		—		—		—		37		—		37
Cash dividends ($0.22 per share)		—		—		—		(1,673)		—		—		(1,673)
Amortization of stock-based compensation		—		—		320		—		—		—		320
Vesting of restricted stock awards		—		—		(1,303)		—		1,303		—		—

Balance at March 31, 2022		—		85		92,166		266,614		(35,972)		(4,590)		318,303
Net income		—		—		—		11,654		—		—		11,654
Other comprehensive loss		—		—		—		—		—		(7,441)		(7,441)
Purchase of treasury stock		—		—		—		—		(7,186)		—		(7,186)
Sale of treasury stock		—		—		—		—		23		—		23
Cash dividends ($0.22 per share)		—		—		—		(1,638)		—		—		(1,638)
Amortization of stock-based compensation		—		—		447		—		—		—		447

Balance at June 30, 2022		—		85		92,613		276,630		(43,135)		(12,031)		314,162
Net income		—		—		—		10,533		—		—		10,533
Other comprehensive loss		—		—		—		—		—		(6,708)		(6,708)
Purchase of treasury stock		—		—		—		—		(2,109)		—		(2,109)
Sale of treasury stock		—		—		—		—		25		—		25
Cash dividends ($0.25 per share)		—		—		—		(2,256)		—		—		(2,256)
Amortization of stock-based compensation		—		—		448		—		—		—		448
Shares issued in the acquisition of Denmark Bancshares, Inc. (1,586,475 shares)		—		16		125,304		—		—		—		125,320

Balance at September 30, 2022	$	—	$	101

Bank First Corp [BFC] Filings
10-Q	[2023-11-09]
10-Q	[2023-08-09]
10-Q	[2023-05-10]
10-K	[2023-03-10]
10-Q	[2022-11-09]
10-Q	[2022-08-09]
10-Q	[2022-05-10]
10-K	[2022-03-16]
10-Q	[2021-11-09]
10-Q	[2021-08-09]
10-Q	[2021-05-10]
10-K	[2021-03-12]
10-Q	[2020-11-06]
10-Q	[2020-08-07]
10-Q	[2020-05-11]
10-K	[2020-03-11]
10-Q	[2019-11-12]
10-Q	[2019-08-13]
10-Q	[2019-05-08]
10-K	[2019-03-26]
10-Q	[2018-12-07]