First Manitowoc Bancorp, Inc. : reports record year end 2011 net income

Manitowoc, Wisconsin - January 23, 2012 - First Manitowoc Bancorp, Inc. (OTCBB: FMWC.OB), parent company of Bank First, reported a 15% increase in annual net income in 2011. Net income rose to $8.5 million, or $1.30 per share, for the full year 2011, compared to net income of $7.5 million, or $1.13 per share, for the year ended December 31, 2010.

"We are pleased to report continued improvements at Bank First from almost every measure. Our strategic initiatives have translated into improved financial performance for 2011," said Michael B. Molepske, President and Chief Executive Officer of First Manitowoc Bancorp, Inc. "Over the past year, our total gross loans have grown 14% to $681 million, while total core deposits have risen 15% to $752 million. Our footprint expansions into Sheboygan County and most recently Winnebago County with our new Oshkosh office, combined with our core deposit base, have fueled our continued success."

Return on average equity for First Manitowoc Bancorp, Inc. was 1.00% compared to 0.91% a year ago. "Our improved trends in net interest margin combined with our strong loan growth and reduced level of loan related costs are the biggest factors driving our improvements in profitability year over year." Net interest margin at the Company improved from 3.95% in 2010 to 4.01% for 2011.

Credit quality improved in 2011 with nonperforming assets as a percentage of total assets decreasing from 1.73% a year ago to 1.09% as of December 31, 2011. "We have been keenly focused on our credit quality. We are particularly proud to report strong asset quality trends while also growing our Bank First loan portfolio." 

Nonperforming assets decreased to $10 million down from $14 million a year ago. Losses taken on other real estate owned property in 2011 increased to $2.5 million compared to $445,000 in 2010, while our provision for loan losses decreased to $2.1 million compared to $6.6 million in 2010.  Reduced levels of provision expense combined with increased other real estate owned costs had a net pretax impact of $2.2 million for 2011.

The capital ratios of the company continue to exceed the well capitalized threshold. The company's excess capital provides capacity for continued growth. Plans for 2012 anticipate continued loan growth, requiring an increase in staff in the company's newer markets. The efficiency ratio increased from 54% in 2010 to 55% in 2011, reflecting the investment to support the newest office in Oshkosh. "Oshkosh loan and deposit growth exceeded our expectations and this office is in a position to reach profitability sooner than originally anticipated," said Michael B. Molepske.