Bank First Corp (BFC)

A. Company Overview

Bank First Corporation is a banking institution based in Wisconsin, established in April 1982. It serves as the holding company for its wholly-owned subsidiary, Bank First, N.A., a national banking association that has roots dating back to 1894. The corporation is headquartered in Manitowoc, Wisconsin. Being a member of the Federal Reserve System and regulated by the Office of the Comptroller of the Currency, Bank First operates within a structured regulatory environment.

The bank operates 26 branch offices across various counties in Wisconsin, including Brown, Columbia, Dane, Fond du Lac, Jefferson, Manitowoc, Monroe, Outagamie, Ozaukee, Shawano, Sheboygan, Waupaca, Waushara, and Winnebago. The bank offers a diverse range of financial services to businesses, professionals, and consumers, encompassing both retail and commercial banking.

B. Products and Services

Bank First provides an extensive portfolio of financial products and services. These offerings include:

Banking Services

• Deposit Accounts: Various checking accounts, savings accounts, money market accounts, and certificates of deposit.
• Cash Management Accounts: Tailored financial tools for businesses to manage their cash flow effectively.

Lending Services

The bank emphasizes a wide range of lending services:

• Commercial and Industrial Loans: Financing for businesses engaged in activities across numerous sectors, including health care, manufacturing, and retail.
• Real Estate Loans: Loans secured by real estate, which form the core of Bank First's loan portfolio.
• Construction and Development Loans: Financing solutions for residential and commercial construction projects.
• Residential Mortgages: Offerings including adjustable and fixed-rate mortgages, catering to homeowners.
• Consumer Loans: Personal loans for a variety of household needs, encompassing secured and unsecured installment loans.

Digital Banking

In the modern banking landscape, Bank First provides online, telephone, and mobile banking to enhance customer convenience and accessibility.

C. Subsidiaries

In addition to its primary banking activities, Bank First operates three subsidiaries:

• Bank First Investments, Inc.: Formed in 2011 to provide investment and safekeeping services to the bank.
• TVG Holdings, Inc.: Established in 2009, this subsidiary holds a 40% interest in Ansay & Associates, LLC, expanding the bank's service offerings without incurring the operational costs of maintaining an in-house insurance department.
• BFC Title, LLC: Launched in 2020, this entity manages Bank First's 5.88% ownership in Generations Title, LLC, a title insurance company.

D. Recent Activity

On February 10, 2023, Bank First Corporation merged with Hometown Bancorp, Ltd., which allowed the company to enter new markets and significantly expand its service capabilities. The merger involved the acquisition of Hometown Bank, bringing ten additional branches under its management. The transaction was valued at approximately $130.5 million, with a mix of cash and stock offered to Hometown shareholders.

E. Financial Performance

As of December 31, 2023, Bank First Corporation reported total consolidated assets of $4.22 billion, total loans amounting to $3.34 billion, total deposits reaching $3.43 billion, and stockholders' equity of approximately $619.8 million. The organization employed around 379 full-time equivalent employees and maintained a strong assets-to-employee ratio of approximately $10.7 million for the financial year.

F. Strategic Vision

Bank First is a community-focused financial institution with a strategy centered around maintaining its independence and delivering top-tier financial services. The bank prioritizes relationships within the community, aiming to create value through personalized financial solutions. Its strategic objectives align with CAMELS ratings—Capital, Asset Quality, Management, Earnings, Liquidity, and Sensitivity to Market Risk—with a particular emphasis on Information Technology.

Within its strategic framework, Bank First is committed to:

• Growing capital through robust earnings.
• Sustaining a strong credit culture.
• Evaluating current and alternative revenue sources.
• Advancing its digital strategies to meet evolving customer expectations.

G. Market Area and Competition

Bank First operates primarily in Wisconsin, engaging with a market that boasts an estimated total population of nearly 1.9 million people and total deposits of roughly $60.4 billion. Despite its local focus, the bank faces formidable competition from a wide array of financial institutions, including commercial banks, credit unions, and fintech companies. This competitive environment necessitates effective local marketing initiatives, the establishment of personal banking relationships, and the delivery of specialized services that address the unique needs of the served communities.

H. Lending Practices

Bank First emphasizes comprehensive internal credit policies and risk management practices to mitigate the inherent risks of lending. The institution's loan approval process incorporates various levels of authority to ensure due diligence. The primary components of the loan portfolio include real estate loans, commercial and industrial loans, construction loans, and consumer loans.

The institution adopts a conservative approach to lending, thereby implementing lending limits to refine risk exposure. As a community bank, it aims to diversify its lending portfolio while minimizing the credit risk associated with large individual loans.

I. Regulatory Environment

Compliance with various federal and state laws significantly influences Bank First’s operations. The company adheres to the regulations set forth by the Federal Reserve, the OCC, and other financial authorities. These regulations cover aspects such as capital requirements, lending limits, and consumer protection laws, ensuring that Bank First maintains a financially sound operation while safeguarding customer interests.

J. Concluding Remarks

Bank First Corporation remains dedicated to serving its community through a suite of comprehensive banking and financial services. With a solid foundation of assets, a diverse product offering, and a commitment to ethical banking practices, Bank First seeks to reinforce its position as a leading community bank in Wisconsin while continuously adapting to the evolving financial landscape.