Bank First : November 2021 Shareholder Newsletter

MIKE MOLEPSKE

SHAREHOLDER

NEWS

NOVEMBER 2021

Plans for new Green Bay branch recently announced

We are pleased to announce plans to construct a new, full-service branch located in northwest Green Bay. The bank recently closed on the purchase of a 7.17 acre parcel in the Village of Howard located along Shawano Avenue and South Taylor Street, next to the Meijer store.

Bank First established itself in the Green Bay community in 1995 by opening a branch in Bellevue, followed by a branch in Ashwaubenon in 2000. From 2016 to 2021, the Bank's Green Bay locations have seen a 112% increase in total loans from $152.6 million to $323.7 million. Total deposits have increased 59% from $125.4 million to $199.1 million over the same time frame. "We are proud of the relationships we have built in the Green Bay community and are committed to remaining a strong financial partner of local families, businesses and non-profit organizations," stated Mike Molepske. "The new location will strengthen our presence in the Green Bay market and will generate additional awareness of our brand."

As always, we are proud to partner with several of our business customers on the project which is anticipated to begin in spring of 2022, pending municipal approvals. Groth Design Group will assist in the design and planning process which will feature many of the modern, energy-efficient, and environmentally-friendly components included in the bank's recently constructed and renovated buildings.

"Our team is very excited for the opportunity to expand our presence in a highly-visible location," stated Aaron Faulkner, SVP - Market Manager.

MESSAGE FROM THE CEO

To our shareholders,

1. co-workerrecently asked me what "relationship-based" means in our Promise Statement, "we are a relationship- based bank focused on providing innovative products and services to the communities we serve." They correctly pointed out that many banks claim to be relationship-based and wanted to know how Bank First is different.
   At Bank First, we focus on growing the Bank one

relationship at a time, regardless of size. We believe the core of every relationship, and the franchise value of Bank First,

is the customer's primary checking account. I would like to provide you with a few examples of how this philosophy drives our everyday decisions. We offer two market leading interest-bearing accounts, our Money Market and Savings Elite products, which are only available to customers who maintain their primary checking account at Bank First.

We also provide discounted loan interest rates to customers with checking accounts at the Bank. Our recent bank acquisitions and employee additions have shown us that a typical bank only has the primary checking accounts of about 50 percent of their mortgage loan customers. At Bank First, we earn nearly 90 percent of the primary checking accounts of the customers we provide mortgage loans to.

Moreover, our business loan customers are required to have their primary checking account at the Bank. We reciprocate the loyalty our business customers show us by providing them responsive and nimble customer service and highly competitive deposit and loan pricing. In addition, when choosing bank vendors we utilize customers over non-customers whenever possible. Another example of what relationship-based means to Bank First, is how we handled providing Paycheck Protection Program (PPP) loans to the communities we serve. While many banks prioritized large business customers over small ones and customers with business loans over those without loans, we never considered prioritizing any customer over another. As a relationship-based bank, we did prioritize customers over non- customers. We made a total of 2,986 PPP loans totaling $377.7 million. We provided a

1. loan to every Bank customer that qualified for one and made 196 loans totaling $44.5 million to non-customers. We also garnered 175 new deposit accounts.
   Our unique approach to relationship-based banking stands out in the mix of our deposits. More than one-third of the Bank's deposits are checking accounts, and more than 85 percent are non-CDs. Both of these measures of relationship-based banking success lead our banking peers.
   At Bank First, "relationship-based" isn't just a phrase. It provides us with purpose and a philosophy of how we want to grow the Bank and serve our customers. The value of Bank First is derived from the sum of our banking relationships and our team of bankers that strive to provide exceptional customer service every day.

Michael B. Molepske, CEO and President [phone]

Ticker: BFC www.BankFirstWI.bank

THIRD

QUARTER

KEVIN LEMAHIEU

Chief Financial Officer [phone]

Total assets for the Company were $2.85 billion at September 30, 2021, up from $2.64 billion at September 30, 2020. Loans were $2.21 billion, growing $15.7 million on a year-over-year basis. Deposits were $2.47 billion, growing $201.2 million over that same time frame. Loans originated through the Paycheck Protection Program ("PPP"), which was designed to support small businesses through the turbulent economic environment created by the COVID-19 pandemic ("COVID"), totaled $62.6 million and $279.6 million at September 30, 2021 and 2020, respectively. It is anticipated that most loans originated under

1. will be forgiven and repaid by the Small Business Administration ("SBA"), which administered the program. Through September 30, 2021, the SBA had forgiven and repaid $318.7 million of the $381.3 million in loans originated by the Company under PPP. Excluding the impact of balances from PPP, loans increased by 12.3% year-over-year.
   Earnings per share for the nine-months ended September 30, 2021, was $4.45, an increase of nearly 25% compared to $3.57 for the same period in 2020. Year-to-date net income was $34.3 million, compared to $26.5 million for the same period during 2020. Net interest income before provision for loan losses increased by $4.5 million over the first nine months of 2021 to $66.9 million. Provisions for loan losses totaled $2.5 million for the first nine months of 2021, down from $5.5 million for the same period during 2020. Significant uncertainty related to COVID during the first nine months of 2020 led to elevated loan loss provisions during that period. Strong asset quality metrics exhibited within the Company's loan portfolio through the first nine months of 2021 have allowed for a reduction in these provisions.

BFC Stock Repurchase Program

Bank First has a stock repurchase program under which the Corporation may repurchase shares of outstanding BFC stock.

Please contact Mike Molepske at [phone] or Shannon Klahn at [phone] for further information.

Quarterly Common Stock

Cash Dividend

The Corporation's Board of Directors approved a quarterly cash dividend of $0.22 per common share. The dividend is payable on January 5, 2022, to shareholders of record as of December 22, 2021.

Total non-interest income was $17.8 million for the first nine months of 2021, compared to $16.8 million for the first nine months of 2020, an increase of $1.0 million. Income from service charges and other fees increased by $1.2 million to $4.6 million for the first nine months of 2021, compared to $3.4 million in the prior year period. The combination of gains on mortgage loans sold on the secondary market and retained servicing fees on those same loans increased by $4.2 million year-over-year, the result of continued robust activity in the origination of residential mortgage loans during the first nine months of 2021. Finally, the sale of $36.6 million in U.S. Treasury notes during the second quarter of 2020 led to a gain on sale of securities totaling $3.1 million. There were no similar large-scale sales of investments during the first nine months of 2021, leading to a decline in year-over- year income in this area.

Non-interest expense decreased by $2.5 million, or 6.3%, to $36.9 million for the nine months ended September 30, 2021. The Company incurred a gain on sale and valuation of foreclosed properties totaling $0.2 million during the first three quarters of 2021 which compared favorably to a loss of $1.4 million in this area during the first three quarters of 2020. In addition, expenses directly related to the acquisition of Timberwood Bancorp, Inc., added $0.8 million to non-interest expense during the first nine months of 2020, primarily in relation to personnel expense, data processing and outside professional fees. The lack of a similar acquisition during 2021 has led to a decline in outside professional fees and a minimal increase in data processing expense year-over-year. Finally, due to the falling interest rate environment during 2020, management determined that it was prudent to pay off $30.0 million in borrowings from the Federal Home Loan Bank of Chicago which had contractual maturities ranging from August 2022 through August 2024 and contractual interest rates ranging from 1.74% to 1.76%. This repayment resulted in the recognition of a prepayment penalty totaling $1.3 million during the second quarter of 2020, while saving the Company $1.7 million in interest expense over the next four years. There was no similar action during 2021.

Total shareholders' equity increased by 10.2% to $315.3 million at September 30, 2021, compared to $286.1 million at September 30, 2020. At its October 2021 meeting, the Company's Board of Directors approved a dividend of $0.22 per common share, to be paid on January 5, 2022, to shareholders of record as of December 22, 2021.

FINANCIAL PERFORMANCE

Consolidated Statements of Financial Condition

				9/30/2021	(In Thousands)	9/30/2020
	ASSETS
	Cash, Cash Equivalents and Fed Funds Sold	$		299,953	$		80,752
	Investment Securities			154,288			180,024
	Other Investments at Cost			8,997			8,896
	Loans, Net		2,188,678			2,176,910
	Premises and Equipment			44,181			41,186
	Other Assets			150,508			151,479
	Total Assets	$	2,846,605	$	2,639,247
	LIABILITIES
	Deposits	$	2,471,258	$		2,271,040
	Securities Sold Under Repurchase Agreements			17,402			23,894
	Borrowed Funds			26,679			45,657
	Other Liabilities			16,004			12,552
	Total Liabilities	$	2,531,343	$	2,353,143
	Total Shareholder Equity			315,262			286,104
	Total Liabilities and Shareholder Equity	$	2,846,605	$	2,639,247
Consolidated Statements of Income
				9/30/2021		9/30/2020
						(In Thousands, Except Per Share Data)
	Total Interest Income	$		73,343		$	73,606
	Total Interest Expense			6,492			11,242
	Net Interest Income			66,851			62,364
	Provision for Loan Losses			2,500			5,475
	Net Interest Income After Provision for Loan Losses			64,351			56,889
	Total Other Income			17,812			16,776
	Total Operating Expenses			36,912			39,381
	Income Before Provision for Income Taxes			45,251			34,284
	Provision for Income Taxes			10,971			7,768
	Net Income	$		34,280		$	26,516
	Earnings Per Share: Basic	$	4.45		$	3.57
	Earnings Per Share: Diluted	$	4.45		$	3.56
Key Financial Metrics
				9/30/2021		9/30/2020
	Return on Average Assets (YTD)			1.62%			1.44%
	Return on Average Equity (YTD)			14.86%			13.74%
	Full-Time Equivalent Employee (FTE) - period end			300			311
	Average Assets per Average FTE		$	9,336		$	8,238
	Dividend Payout Ratio			21%			15%
	Dividends Per Share (YTD)		$	0.92		$	0.60
	Net Interest Margin (YTD)			3.47%			3.77%
	Shares Outstanding - period end		7,641,771			7,729,762

Make A Difference Day 2021

Make A Difference Day is the largest national day of community service and is a celebration of neighbors helping neighbors. In October, millions of Americans united in a common mission to improve the lives of others and Bank First was proud to once again take part! Below are just few photos of Bank First employees participating in various service projects throughout the communities we serve.

Operations Center Groundbreaking

Bank First recently held a groundbreaking ceremony at the future site of its new Operations Center, located at the corner of Dufek Drive and West Drive in Manitowoc.

Bank First announces promotion

Derek Domino has been promoted to Treasury

Management Officer. Derek joined the bank in
2018 as Treasury Management Assistant and
was quickly promoted to Treasury Management
Specialist and most recently served as Treasury
Management / Merchant Services Representative.
Derek was instrumental in helping launch the
bank's Merchant Services platform and continues
to manage the program. Derek is responsible	DOMINO
for proposing and onboarding new business

customers, assisting current customers with account management solutions, and promoting the bank's treasury management and merchant service products and services.

Derek received his bachelor's degree in business management and master's degree in business management and organizational development from Silver Lake College in Manitowoc, Wisconsin.

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