Announces 14% EPS Accretive PSB Deal; Continues Strategic Wisconsin Expansion

Research evidence excerpt

Announces 14% EPS Accretive PSB Deal; Continues Strategic Wisconsin Expansion

ng the closing of Centre1

Price Performance - 1 Year in early 1Q and systems/brand conversion last weekend. We would not be surprised

with upside to the 35% cost saves target and EPS accretion guidance given BFC's USD

proven ability to extract greater expense synergies and successful integration track- 160

record. The addition of PSB's both complementary Wisconsin footprint and strong core 150

deposit franchise (24% NIB and 2.01% cost of deposits vs. BFC at 30% and 1.59%) 140

should enhance BFC's already top tier franchise value moving forward (BFC's Wisconsin 130

deposit market share increases from #7 to #6 with PSBQ). While some intentional loan

run-off (1.37% NPLs / total loans at 3/31 for PSBQ) may weigh on BFC's organic growth 120

for a few quarters post-closing given BFC's tight credit box, we believe PSBQ's addition 110

should support low-to-MSD organic B/S growth L-T. PSBQ also adds a growing wealth 100

management business ($0.4M in revenue per quarter vs. $0.1M two years ago) as May-25 Jul-25 Sep-25 Nov-25 Jan-26 Mar-26 May-26

BFC continues to leverage Centre1's platform (~$772M in AUM; $1.6M per quarter) Source: Bloomberg

across its broader footprint. Given that is not necessarily a bite-sized deal for BFC

(PSBQ increases total assets by 25% to $7.6B), we do not anticipate additional M&A

announcements from BFC until PSBQ is successfully integrated, which is consistent

with mgmt.'s demonstrated and disciplined approach to sequential deal execution.

• Background on PSBQ. Founded in 1962 and headquartered in Wausau, Wisconsin

with #2 market share (~66% of PSB's deposits), Peoples State Bank operates 12

branches across central and northern Wisconsin (9 branches) as well as the greater