Bank First : November 2023 Shareholder Newsletter

MIKE MOLEPSKE

SHAREHOLDER

NEWS

CORPORATION

NOVEMBER 2023

New Bank First branch opens in Reedsville; Howard soon to follow

We are thrilled to announce significant milestones that highlight Bank First's commitment to growth and accessibility. The Reedsville branch officially opened its doors on Monday, October 16, extending a warm welcome to customers in Reedsville and neighboring communities.

Our newly renovated office, strategically located for great visibility and easy access from Highway 10, is designed to elevate our guests' banking experience. With comfortable seating, spacious teller areas, and additional drive- thru lanes, we aim to provide added comfort and convenience for our valued customers.

We were delighted to unveil our new office during a special ribbon cutting ceremony on Friday, November 10. The Chamber of Manitowoc County, customers, and community members joined us for this exciting celebration. (See photos on page four.)

Furthermore, we are pleased to announce that the construction of our cutting-edge facility in Howard is nearing completion, with an anticipated opening in early 2024.

As we celebrate these achievements, we express our gratitude to you, our shareholders, for your ongoing support and confidence in our strategic initiatives. Your investment has been instrumental in fueling our growth, and we look forward to delivering sustained value as we embark on this exciting chapter.

MESSAGE FROM THE CEO

To our Shareholders,

Reflecting on the many conversations I have had with shareholders like you this year, I am grateful for your support and trust in Bank First and our team of bankers. Your appreciation for the returns we have delivered over the years is greatly valued.

At Bank First, we believe that the growth of Earnings Per Share (EPS) is the most important financial measure of our success. I am pleased to share that our team has achieved consistent and robust growth in EPS

over the past three, five, and ten years, compounding at rates of 13.0%, 18.0%, and 13.4%, respectively. This impressive growth has led to a premium valuation of our stock and enables us to consistently increase our dividend payout over time.

Our success is built on staying true to our Promise: "We are a relationship- based bank focused on providing innovative solutions that are value-driven to the communities we serve." Instead of solely focusing on growing assets or loans, we prioritize adding and growing banking relationships. We firmly believe that the heart of every banking relationship lies in the customer's primary checking account and ancillary deposit accounts. Unlike many other banks, Bank First's team concentrates on growing deposits (liabilities) rather than loans (assets). This unique approach has resulted in 32% of our deposits being stable, low-cost checking accounts, exceeding many of our peers.

The composition of our deposit balances has proven to be invaluable during this challenging time. Bank First has successfully navigated the Federal Reserve's 11 rate hikes since March 2022 and the subsequent industry-wide liquidity crisis earlier this year. While many banks have faced difficulties finding alternative funding sources and have had to restrict lending, we have remained well positioned to fund new loans for our existing and new customers. As we approach 2024, we are excited about the opportunity to increase our market share in all the communities we serve. Our suite of premium-priced deposit and loan products is exclusively available to customers who maintain their primary checking account with the Bank.

In line with our Promise to deliver innovative solutions that are value- driven, we are addressing the exponential growth of fraud experienced by our business customers. We are rolling out several anti-fraud products to our small and non-profit business customers at no cost to them. Our business bankers will be reaching out to all our business customers through various communication channels to emphasize the importance of utilizing these tools.

Thank you for being a valued shareholder of Bank First. We are committed to delivering exceptional long-term financial results and maintaining strong banking relationships. If you have any questions or would like further information, please do not hesitate to contact me directly.

Michael B. Molepske

CEO - [phone]

Ticker: BFC www.bankfirst.com

THIRD

QUARTER

KEVIN LEMAHIEU

Chief Financial Officer [phone]

Total assets for the Company were $4.09 billion at September 30, 2023, up from $3.64 billion at September 30, 2022. Loans were $3.36 billion, growing $496.3 million on a year-over-year basis. Deposits were $3.40 billion, growing $260.1 million over that same time frame. Year-over-year comparisons were significantly impacted by the Company's acquisition of Hometown Bancorp, Ltd. ("Hometown") during the first quarter of 2023. This transaction included $395.8 million in loans, $532.4 million in deposits, and $615.1 million in total assets.

Year-to-date net income through September 30, 2023, totaled $39.6 million, up from $32.4 million during the same period of 2022. Earnings per share for the nine months ended September 30, 2023, was $3.89, down from $4.15 for the same period in 2022. One-time costs during the first nine months of 2023, primarily relating to the acquisition of Hometown, reduced earnings per share by $0.49. Similar one-time costs, primarily related to the acquisition of Denmark Bancshares, Inc. ("Denmark") during the third quarter of 2022, reduced earnings per share during the first nine months of 2022 by $0.54.

Net interest income before provision for loan losses for the first nine months of 2023 totaled $100.6 million, an increase of $27.1 million over the same period of 2022. Increasing prevailing interest rates over the previous eighteen months have allowed gross interest income to increase, but competitive pressure on deposit pricing has led to an offsetting increase in gross interest

expense. The added scale from the acquisitions of Denmark and Hometown, which combined to increase assets of the Company by approximately 40%, has been the primary driver of the increase in net interest income. Provisions for credit losses totaled $4.2 million for the first nine months of 2023, up from $1.7 million for the same period during 2022. Due to accounting rules associated with acquired loan portfolios, the Hometown transaction required a provision for credit losses of $3.6 million. Continued strong asset quality metrics exhibited within the Company's loan portfolio allowed for a reduced provision from the prior-year period, net of the impact from the Hometown transaction.

Non-interest income totaled $15.7 million year-to-date through September 30, 2023, down from $15.8 million during the same period of 2022. Most areas of non-interest income saw increases during the first nine months of 2023 compared to the same period in 2022, once again due to the increased scale from the acquisitions of Denmark and Hometown. Counteracting those increases, however, was a decline in gains on sales of mortgage loans, from $1.3 million for the first nine months of 2022 to $0.6 million for the first nine months of 2023, and smaller positive valuation adjustments to the mortgage servicing rights asset on the Company's balance sheet, totaling $2.8 million year-to-date through September 30, 2022 compared to $0.5 million through the same period of 2023.

Non-interest expense increased by $14.6 million, or 32.6%, from $44.7 million during the first nine months of 2022 to $59.3 million during the same period of 2023. Inflationary pressure added to the overall larger scale of operations resulting from the acquisitions of Denmark and Hometown caused significant increases in nearly every category of non-interest expense.

Total shareholders' equity increased by $137.9 million to $577.3 million at September 30, 2023, compared to $439.4 million at September 30, 2022.

Quarterly Common Stock Cash Dividend

Bank First's Board of Directors approved a quarterly cash dividend of $0.30 per common share, payable on January 10, 2024, to shareholders of record as of December 27, 2023. This dividend represents a 20.0% increase over the dividend declared one year earlier.

Bank First Corporation Contacts

LORI SISEL - Shareholder Services Officer

[phone] [e-mail]

KELLY DVORAK - Chief Legal Counsel / Corporate Secretary

[phone] [e-mail]

SHANNON KLAHN - Vice President Administration

[phone] [e-mail]

Computershare Online Account Access

Many shareholders can manage their holdings online with free access to Computershare's Investor Center website. Utilize this simple tool to quickly and easily review your investment, update account information, change your dividend payment option, sign up for electronic delivery of documents, and more!

Enroll FREE today at www.computershare.com/investor. Click "Not a member? Register Now" to complete the three-step registration process.

FINANCIAL PERFORMANCE

Consolidated Statements of Financial Condition

	ASSETS	9/30/2023	(In Thousands) 9/30/2022
	Cash, Cash Equivalents and Fed Funds Sold	$	75,776	$	143,441
	Investment Securities		256,200		344,106
	Other Investments at Cost		21,542		14,905
	Loans, Net		3,312,145		2,835,022
	Premises and Equipment		70,994		57,019
	Other Assets		350,862		246,261
	Total Assets	$	4,087,519	$	3,640,754
	LIABILITIES
	Deposits	$	3,398,293	$	3,138,201
	Securities Sold Under Repurchase Agreements		17,191		21,963
	Borrowed Funds		70,319		26,069
	Other Liabilities		24,387		15,106
	Total Liabilities	$	3,510,190	$	3,201,339
	Total Shareholder Equity		577,329		439,415
	Total Liabilities and Shareholder Equity	$	4,087,519	$	3,640,754
Consolidated Statements of Income
				9/30/2023	9/30/2022
					(In Thousands, Except Per Share Data)
	Total Interest Income	$	133,820	$	80,780
	Total Interest Expense		33,256		7,317
	Net Interest Income		100,564		73,463
	Provision for Loan Losses		4,182		1,700
	Net Interest Income After Provision for Loan Losses		96,382		71,763
	Total Other Income		15,657		15,805
	Total Operating Expenses		59,257		44,699
	Income Before Provision for Income Taxes		52,782		42,869
	Provision for Income Taxes		13,166		10,499
	Net Income	$	39,616	$	32,370
	Earnings Per Share: Basic	$	3.89	$	4.15
	Earnings Per Share: Diluted	$	3.89	$	4.15
Key Financial Metrics
				9/30/2023	9/30/2022
	Return on Average Assets (YTD)		1.31%		1.33%
	Return on Average Equity (YTD)		9.55%		12.46%
	Full-Time Equivalent Employee (FTE) - period end		385		335
	Average Assets per Average FTE	$	10,670	$	11,221
	Dividend Payout Ratio		22%		17%
	Dividends Per Share (YTD)	$	0.85	$	0.69
	Net Interest Margin (YTD)		3.74%		3.30%
	Shares Outstanding - period end	10,379,071		9,028,629

Bank First announces new hires and promotions

ADAM SITKIEWITZ has been promoted to Security Officer. Adam joined the Bank in February 2022 as Facilities Specialist following 17 years as a nuclear security officer at Point Beach Nuclear Plant. As the Bank's Facilities Specialist, Adam was responsible for performing and coordinating maintenance requirements at all Bank First locations. Additionally, he contributed significantly to the Bank's new branch construction and remodel projects. In his new role as Security Officer, Adam is responsible for ensuring the physical security of Bank First offices, including building security, employee training, and developing processes and procedures to mitigate security risk throughout the Bank. Adam attended Lakeshore Technical College in Cleveland, Wisconsin, where he earned an Associate of Science degree in Criminal Justice.

TREVER ATHORP has recently joined the Bank as Vice President

• Agricultural and Business Banking. Trever has over 23 years of experience in the financial industry, including 10 years specializing in agricultural lending. In his new role, Trever will partner with agricultural producers and agri-business customers, offering financial and treasury management solutions to develop and enhance the Bank's agricultural relationships. Although Trever will be based out of the Bank's Sheboygan office, he will travel to various Bank First locations and visit agriculture businesses across Wisconsin. Trever earned a bachelor's degree in business administration from St. Norbert College and graduated from the Graduate School of Banking at UW - Madison. He has served on the Wisconsin FFA Foundation Board of Directors since 2018 and has held the role of Treasurer since 2019.
  KRISTEEN PELOT has joined the Bank as Senior Vice President - Operations, where she will play a pivotal role in overseeing and enhancing the Bank's Loan, Deposit, and Branch Operations functions. Prior to joining Bank First, Kristeen served as President and Chief Operating Officer at Info-Pro Lender Services until it was acquired by Lereta, LLC in May 2023, where she then assumed the role of Senior Vice President - Operations. Kristeen brings a wealth of experience and a proven track record of successfully leading organizational transformation, driving operational efficiency, and championing a commitment to continuous improvement, all while

cultivating	a	customer-
centric culture.	One	of
Kristeen's	exceptional
strengths centers on team
development, which aligns
well with the Bank's mission
of	helping	employees
grow	personally	and
professionally	in	their roles.	SITKIEWITZ	ATHORP
Kristeen holds a Master of
Business Administration from
UW - Eau Claire, a Bachelor
of Business Administration in
Operations	Management
from	Marian	University
in Fond du Lac, and an
Associate's	Degree	in
Industrial	Engineering	PELOT	ARGALL
Technology from Moraine

Park Technical College, also in Fond du Lac. Involved in her community, Kristeen serves on the Development Committee for the Fond du Lac Area Women's Fund.

TRACI ARGALL has recently joined the Bank as Assistant Vice President - Project Management, bringing an impressive background in project oversight, end-user training, and workflow modifications. Traci has an impressive 28-year career with Acuity Insurance, highlighted by diverse roles and extensive experience as a project lead on numerous corporate projects aimed at securing a competitive edge through enhanced service and technology applications. In her new role at Bank First, Traci will work closely with senior leadership to develop project plans that align with the Bank's strategic goals, ensuring on-time and on-budget project delivery. She will collaborate closely with the Bank's various departments to streamline project management processes while maintaining the highest standards of quality. Traci is a proud alumna of UW

• Milwaukee where she earned a Bachelor of Science degree in Finance.

Celebrating the opening of our new Reedsville location

OUR NEW OFFICE FEATURES THREE DRIVE-THRU LANES, AN ATM LANE, AND	RIBBON CUTTING CEREMONY
A SPACIOUS LOBBY.	ON NOVEMBER 10, 2023.
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