Group 1: Company Overview - Bank First Corporation (BFC) is a member of the Finance sector, which includes 867 individual stocks and currently holds a Zacks Sector Rank of 3 [2] - BFC has a Zacks Rank of 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] Group 2: Performance Metrics - Year-to-date, BFC has gained approximately 32.1%, significantly outperforming the Finance sector's average gain of 14.2% [4] - Within the Banks - Northeast industry, which consists of 78 companies, BFC is performing better than the industry average, which has gained about 2.6% this year [5] Group 3: Comparative Analysis - Another stock in the Finance sector, Bank of Nova Scotia (BNS), has a year-to-date return of 21.4% and also holds a Zacks Rank of 2 (Buy) [4][5] - The Banks - Foreign industry, to which BNS belongs, has gained 39.1% this year, but BFC's performance remains strong within its own industry [6]

分组1 - Bank First Corporation (BFC) reported quarterly earnings of $1.91 per share, exceeding the Zacks Consensus Estimate of $1.81 per share, and up from $1.65 per share a year ago, representing an earnings surprise of +5.52% [1] - The company posted revenues of $44.21 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.62%, and an increase from $40.78 million year-over-year [2] - Bank First Corporation has outperformed the S&P 500, with shares increasing about 25.5% since the beginning of the year compared to the S&P 500's gain of 14.5% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $1.75 on revenues of $43 million, and for the current fiscal year, it is $7.10 on revenues of $171.2 million [7] - The Zacks Industry Rank for Banks - Northeast is currently in the top 27% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Core Viewpoint - Bank First Corporation reported strong financial performance for the third quarter of 2025, with net income increasing to $18.0 million, or $1.83 per share, compared to $16.6 million, or $1.65 per share, in the same quarter of the previous year [1][7]. Financial Performance - For the nine months ended September 30, 2025, net income was $53.1 million, or $5.36 per share, up from $48.0 million, or $4.75 per share, for the same period in 2024 [1]. - Adjusted net income (non-GAAP) for the third quarter of 2025 was $18.8 million, or $1.91 per share, compared to $16.5 million, or $1.65 per share, in the prior-year third quarter [1]. - The annualized return on average assets was 1.64% for the third quarter of 2025 and 1.61% for the nine months ended September 30, 2025 [7]. Revenue and Expenses - Net interest income (NII) for the third quarter of 2025 was $38.3 million, an increase of $1.6 million from the previous quarter and $2.4 million from the third quarter of 2024 [3]. - Noninterest income was $6.0 million for the third quarter of 2025, compared to $4.9 million for both the prior quarter and the third quarter of 2024 [6]. - Noninterest expense totaled $21.1 million in the third quarter of 2025, up from $20.8 million in the prior quarter and $20.1 million in the third quarter of 2024 [9]. Loan and Deposit Growth - Total loans were $3.63 billion at September 30, 2025, up $112.5 million from December 31, 2024, and up $158.7 million from September 30, 2024, with an annualized growth rate of 5.5% during the third quarter of 2025 [10]. - Total deposits were $3.54 billion at September 30, 2025, down $122.3 million from seasonal highs at December 31, 2024, but up $54.0 million from September 30, 2024 [11]. Asset Quality - Nonperforming assets remained negligible at $13.9 million at September 30, 2025, with nonperforming assets to total assets at 0.31% [12]. Capital Position - Stockholders' equity totaled $628.1 million at September 30, 2025, a decrease of $11.6 million from the end of 2024 [13]. - The book value per common share was $63.87 at September 30, 2025, compared to $63.89 at December 31, 2024 [13]. Dividend Declaration - The Board of Directors approved a quarterly cash dividend of $0.45 per common share, payable on January 7, 2026 [14].

```markdown [Executive Summary](index=1&type=section&id=Executive%20Summary) Bank First reported strong financial performance in Q3 and YTD 2025, driven by increased net income and EPS, loan growth, and improved yields, despite merger-related expenses [Q3 and YTD 2025 Financial Highlights](index=1&type=section&id=Q3%20and%20YTD%202025%20Financial%20Highlights) Bank First reported increased net income and earnings per share (EPS) for both the third quarter and nine months ended September 30, 2025 Adjusted net income and EPS also showed growth, demonstrating strong performance despite one-time acquisition-related expenses | Metric | Q3 2025 | Q3 2024 | YTD 2025 | YTD 2024 | | :-------------------------------- | :------ | :------ | :------- | :------- | | Net Income (GAAP) | $18.0M | $16.6M | $53.1M | $48.0M | | EPS (GAAP) | $1.83 | $1.65 | $5.36 | $4.75 | | Adjusted Net Income (Non-GAAP) | $18.8M | $16.5M | $53.8M | $47.6M | | Adjusted EPS (Non-GAAP) | $1.91 | $1.65 | $5.42 | $4.71 | | Annualized Return on Average Assets | 1.64% | - | 1.61% | - | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) The Chairman and CEO, Mike Molepske, expressed satisfaction with the nearly 13% increase in year-to-date EPS, attributing this growth to mid-single-digit loan expansion and improved loan yields from repricing, with expectations for continued yield boosts - Earnings per share through the first three quarters of 2025 increased by nearly **13%** compared to the same period last year[3](index=3&type=chunk) - The Bank incurred over **\$891,000** in merger expenses related to the acquisition of First National Bank & Trust in Beloit, Wisconsin, scheduled to close on January 1, 2026[3](index=3&type=chunk) - Continued growth in earnings was driven by mid-single-digit loan expansion and an increase in loan yields due to repricing, which is expected to continue boosting loan portfolio yields[3](index=3&type=chunk) [Operating Performance](index=1&type=section&id=Operating%20Performance) Operating performance improved with increased net interest income and margin, driven by loan growth and yield improvements, while managing credit losses and noninterest expenses [Net Interest Income and Margin](index=1&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income (NII) and net interest margin (NIM) both improved in Q3 2025, driven by higher yields on the loan portfolio from new originations and renewals, coupled with a decline in the average rate paid on interest-bearing liabilities due to CD repricing | Metric | Q3 2025 | Q2 2025 | Q3 2024 | | :---------------- | :------ | :------ | :------ | | Net Interest Income | $38.3M | $36.7M | $35.9M | | Net Interest Margin | 3.88% | 3.72% | 3.76% | - The average rate earned on the Bank's loan portfolio increased by **10 basis points** compared to the prior quarter, due to yields on newly originated loans exceeding the portfolio average and strong yield improvements on renewed maturing loans[6](index=6&type=chunk) - Repricing of maturing certificates of deposit led to a **7 basis point** decline in the average rate paid on the Bank's interest-bearing liabilities[6](index=6&type=chunk) [Provision for Credit Losses](index=2&type=section&id=Provision%20for%20Credit%20Losses) The provision for credit losses increased in Q3 2025 and YTD 2025, primarily as a result of growth in the loan portfolio, while the Bank maintained strong asset quality metrics with negligible net loan losses | Period | Provision for Credit Losses | | :----- | :-------------------------- | | Q3 2025 | $0.7M | | Q2 2025 | $0.2M | | Q3 2024 | $0M | | YTD 2025 | $1.3M | | YTD 2024 | $0.2M | - Provision expense recorded during the third quarter of 2025 was the result of increasing balances in the Bank's loan portfolio[7](index=7&type=chunk) - The Bank experienced negligible net loan losses during the quarter, and its asset quality metrics remain strong[7](index=7&type=chunk) [Noninterest Income Analysis](index=2&type=section&id=Noninterest%20Income%20Analysis) Noninterest income increased in Q3 2025, driven by higher contributions from the investment in Ansay & Associates, increased gains from mortgage loan sales, and a positive valuation adjustment to mortgage servicing rights | Metric | Q3 2025 | Q2 2025 | Q3 2024 | | :-------------------------------- | :------ | :------ | :------ | | Noninterest Income | $6.0M | $4.9M | $4.9M | | Income from Ansay & Associates | $1.3M | $1.2M | $1.1M | | Gains on sales of mortgage loans | $0.5M | $0.3M | $0.4M | | Mortgage servicing rights valuation | +$0.3M | -$0.1M | -$0.3M | [Noninterest Expense Analysis](index=2&type=section&id=Noninterest%20Expense%20Analysis) Noninterest expense saw a slight increase in Q3 2025, primarily due to a significant rise in outside service fees related to the Centre 1 Bancorp, Inc. acquisition, while personnel and occupancy expenses were well-managed or decreased | Metric | Q3 2025 | Q2 2025 | Q3 2024 | | :---------------- | :------ | :------ | :------ | | Noninterest Expense | $21.1M | $20.8M | $20.1M | | Outside Service Fees | $1.8M | $1.1M | $1.1M | | Personnel Expense | Up 0.7% QoQ | - | Up 3.8% YoY | | Occupancy, Equipment, Office | $1.6M | $2.0M | $1.6M | - Outside service fees related to the acquisition of Centre 1 Bancorp, Inc. totaled **\$0.9 million** during the third quarter of 2025[9](index=9&type=chunk) [Balance Sheet and Asset Quality](index=2&type=section&id=Balance%20Sheet%20and%20Asset%20Quality) The balance sheet shows growth in total assets and loans, with stable deposit trends and maintained strong asset quality despite a slight increase in nonperforming assets [Balance Sheet Overview](index=2&type=section&id=Balance%20Sheet%20Overview) Total assets at September 30, 2025, increased year-over-year but experienced a slight decline from the end of the previous fiscal year | Metric | Sep 30, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :----------- | :----------- | :----------- | :----------- | | Total Assets | $4.42B | $4.49B | $4.29B | | Change from Dec 31, 2024 | -$74.6M | - | - | | Change from Sep 30, 2024 | +$125.9M | - | - | [Loan and Deposit Trends](index=3&type=section&id=Loan%20and%20Deposit%20Trends) Total loans continued to grow, with an annualized pace of 5.5% in Q3 2025, while total deposits showed a year-over-year increase, with noninterest-bearing demand deposits maintaining a significant proportion | Metric | Sep 30, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | | Total Loans | $3.63B | $3.52B | $3.47B | | Total Deposits | $3.54B | $3.66B | $3.48B | | Noninterest-bearing demand deposits | 28.2% of total | 28.0% of total | 29.3% of total | - Total loans grew at an annualized pace of **5.5%** during the third quarter of 2025[11](index=11&type=chunk) [Asset Quality Metrics](index=3&type=section&id=Asset%20Quality%20Metrics) Nonperforming assets increased slightly at September 30, 2025, compared to prior periods, but remained at a negligible level relative to total assets | Metric | Sep 30, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | | Nonperforming Assets | $13.9M | $9.2M | $11.9M | | Nonperforming Assets to Total Assets | 0.31% | 0.21% | 0.28% | [Capital and Shareholder Returns](index=3&type=section&id=Capital%20and%20Shareholder%20Returns) Capital position saw minor fluctuations due to dividends and share repurchases, while the Board declared a quarterly cash dividend [Capital Position](index=3&type=section&id=Capital%20Position) Stockholders' equity decreased slightly due to dividends and share repurchases outpacing earnings for the first nine months of 2025, while book value and tangible book value per common share showed minor fluctuations | Metric | Sep 30, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | | Stockholders' Equity | $628.1M | $639.7M | $628.9M | | Book Value per Common Share | $63.87 | $63.89 | $62.82 | | Tangible Book Value per Common Share (non-GAAP) | $44.30 | $44.28 | $43.07 | - Dividends (**\$48.1 million**, including a **\$3.50** special dividend) and repurchases of BFC common stock (**\$22.0 million**) outpaced earnings (**\$53.1 million**) through the first nine months of 2025, causing the decline in capital[14](index=14&type=chunk) [Dividend Declaration](index=3&type=section&id=Dividend%20Declaration) Bank First's Board of Directors approved a quarterly cash dividend of $0.45 per common share, payable in January 2026 - Bank First's Board of Directors approved a quarterly cash dividend of **\$0.45** per common share[15](index=15&type=chunk) - The dividend is payable on January 7, 2026, to shareholders of record as of December 24, 2025[15](index=15&type=chunk) [Company Profile](index=3&type=section&id=Company%20Profile) Bank First Corporation, established in 1894, provides comprehensive financial services through its subsidiary, Bank First, N.A., operating 27 banking locations in Wisconsin [Bank First Corporation Overview](index=3&type=section&id=Bank%20First%20Corporation%20Overview) Bank First Corporation, established in 1894, provides comprehensive financial services through its subsidiary, Bank First, N.A., operating 27 banking locations in Wisconsin with approximately $4.4 billion in assets and 366 full-time equivalent staff, growing through both acquisitions and de novo branch expansion - Bank First Corporation provides financial services through its subsidiary, Bank First, N.A., incorporated in 1894[16](index=16&type=chunk) - The Bank offers loan, deposit, and treasury management products at its **27** banking locations in Wisconsin[16](index=16&type=chunk) - The Bank has approximately **\$4.4 billion** in assets and employs about **366** full-time equivalent staff, with growth achieved through acquisitions and de novo branch expansion[16](index=16&type=chunk) [Important Disclosures](index=3&type=section&id=Important%20Disclosures) This section provides important disclosures regarding forward-looking statements and the use of non-GAAP financial measures, highlighting inherent uncertainties and analytical limitations [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements regarding future performance, growth, and acquisitions, which are inherently uncertain and subject to various risks and assumptions that could cause actual results to differ materially from expectations - Forward-looking statements relate to timing, benefits, costs, and synergies of mergers, projected growth, anticipated future financial performance, financial condition, credit quality, and management's long-term performance goals[18](index=18&type=chunk) - These statements are not historical facts and are based on current expectations, estimates, and projections, many of which are inherently uncertain and beyond Bank First's control[19](index=19&type=chunk) - Factors that could cause actual results to differ materially include business and economic conditions, changes in government interest rate policies, ability to manage problem credits, risks of future acquisitions, and general competitive, economic, political, and market conditions[19](index=19&type=chunk) [Non-GAAP Financial Measures Explanation](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20Explanation) The report includes non-GAAP financial measures, such as tangible book value per common share, which management uses to evaluate financial condition and capital strengths, but advises that these measures should not be considered in isolation from GAAP results - The communication contains non-GAAP financial measures, such as tangible book value per common share and tangible common equity to tangible assets[20](index=20&type=chunk) - Management believes these measures are helpful to management, investors, and others in understanding Bank First's results of operations or financial position[20](index=20&type=chunk) - Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for analyses of results as reported under GAAP[20](index=20&type=chunk) [Financial Statements (Unaudited)](index=5&type=section&id=Financial%20Statements%20(Unaudited)) This section presents unaudited consolidated financial statements, including results of operations, period-end balances, average balances, and key financial ratios [Consolidated Financial Summary](index=5&type=section&id=Consolidated%20Financial%20Summary) This section provides a comprehensive unaudited consolidated financial summary, detailing results of operations, period-end balances, average balances, key financial ratios, loan portfolio composition, share repurchases, and non-GAAP financial reconciliations across multiple reporting periods [Results of Operations](index=5&type=section&id=Results%20of%20Operations) | Metric (in thousands) | 3 Months Ended Sep 30, 2025 | 3 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2025 | 9 Months Ended Sep 30, 2024 | | :-------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Interest income | $55,456 | $54,032 | $165,079 | $152,651 | | Interest expense | $17,203 | $18,149 | $53,587 | $50,412 | | Net interest income | $38,253 | $35,883 | $111,492 | $102,239 | | Provision for credit losses | $650 | $0 | $1,250 | $200 | | Noninterest income | $5,953 | $4,893 | $17,462 | $15,167 | | Noninterest expense | $21,086 | $20,100 | $62,446 | $59,481 | | Net income | $17,990 | $16,552 | $53,106 | $48,023 | | EPS (Basic and Diluted) | $1.83 | $1.65 | $5.36 | $4.75 | [Period-End Balances](index=5&type=section&id=Period-End%20Balances) | Metric (in thousands) | Sep 30, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | | Total assets | $4,420,411 | $4,495,060 | $4,294,498 | | Total loans | $3,629,663 | $3,517,168 | $3,470,920 | | Total deposits | $3,538,761 | $3,661,073 | $3,484,741 | | Stockholders' equity | $628,125 | $639,683 | $628,895 | | Book value per common share | $63.87 | $63.89 | $62.82 | | Tangible book value per common share (non-GAAP) | $44.30 | $44.28 | $43.07 | [Average Balances and Financial Ratios](index=5&type=section&id=Average%20Balances%20and%20Financial%20Ratios) | Metric | 3 Months Ended Sep 30, 2025 | 3 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2025 | 9 Months Ended Sep 30, 2024 | | :-------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Average total assets | $4,350,555 | $4,231,112 | $4,418,310 | $4,157,121 | | Average loans | $3,600,259 | $3,450,423 | $3,567,946 | $3,402,001 | | Average deposits | $3,573,341 | $3,435,172 | $3,613,685 | $3,427,741 | | Return on average assets | 1.64% | 1.56% | 1.61% | 1.54% | | Return on average common equity | 11.51% | 10.61% | 11.27% | 10.43% | | Net interest margin, taxable equivalent | 3.88% | 3.76% | 3.75% | 3.67% | | Nonperforming assets to total assets | 0.31% | 0.28% | 0.31% | 0.28% | [Loan Portfolio Composition](index=6&type=section&id=Loan%20Portfolio%20Composition) | Loan Category (in thousands) | Sep 30, 2025 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | | Commercial/industrial | $654,452 | $517,816 | | Commercial real estate - owner occupied | $861,650 | $938,730 | | Commercial real estate - non-owner occupied | $510,535 | $463,323 | | Multi-family | $372,031 | $329,458 | | Construction and development | $262,439 | $246,445 | | Residential 1-4 family | $897,518 | $904,273 | | Consumer and other | $71,038 | $70,875 | | **Total Loans** | **$3,629,663** | **$3,470,920** | [Share Repurchases](index=6&type=section&id=Share%20Repurchases) | Period | Total Number of Shares Repurchased | Total Dollar of Shares Repurchased (in thousands) | | :----- | :--------------------------------- | :---------------------------------------------- | | Q3 2025 | - | $0 | | Q2 2025 | 143,720 | $15,622 | | Q1 2025 | 61,882 | $6,381 | | YTD 2025 | 205,602 | $22,003 | | YTD 2024 | 372,402 | $31,227 | [Non-GAAP Reconciliations](index=6&type=section&id=Non-GAAP%20Reconciliations) | Metric (in thousands) | 3 Months Ended Sep 30, 2025 | 9 Months Ended Sep 30, 2025 | | :-------------------------------- | :-------------------------- | :-------------------------- | | Net income (GAAP) | $17,990 | $53,106 | | Acquisition related expenses | $862 | $862 | | Gains on sales of securities and OREO valuations | ($159) | ($159) | | Adjusted net income (non-GAAP) | $18,778 | $53,768 | | Adjusted earnings per share (non-GAAP) | $1.91 | $5.42 | | Tangible book value per common share (non-GAAP) | $44.30 | $44.30 | | Tangible equity to tangible assets (non-GAAP) | 10.30% | 10.30% | - The consolidated financial summary provides unaudited data for results of operations, period-end balances, average balances, and financial ratios[22](index=22&type=chunk) - It includes detailed breakdowns of the loan portfolio composition and share repurchase activities[23](index=23&type=chunk) - Non-GAAP financial measures are reconciled to their GAAP equivalents, including adjusted net income, adjusted EPS, and tangible book values[23](index=23&type=chunk) [Average Assets, Liabilities, and Rates Earned/Paid](index=7&type=section&id=Average%20Assets,%20Liabilities,%20and%20Rates%20Earned/Paid) This section provides detailed tables on the average balances of assets, liabilities, and stockholders' equity, along with the average interest income/expense and rates earned or paid for various categories of interest-earning assets and interest-bearing liabilities for both quarterly and year-to-date periods [Three Months Ended September 30, 2025 vs 2024](index=7&type=section&id=Three%20Months%20Ended%20September%2030,%202025%20vs%202024) | Metric | Q3 2025 Average Balance (in thousands) | Q3 2025 Rate | Q3 2024 Average Balance (in thousands) | Q3 2024 Rate | | :-------------------------------- | :----------------------------------- | :----------- | :----------------------------------- | :----------- | | Total interest-earning assets | $3,948,304 | 5.61% | $3,833,968 | 5.64% | | Total interest-bearing liabilities | $2,709,808 | 2.52% | $2,583,382 | 2.79% | | Net interest spread | - | 3.09% | - | 2.85% | | Net interest margin | - | 3.88% | - | 3.76% | [Nine Months Ended September 30, 2025 vs 2024](index=8&type=section&id=Nine%20Months%20Ended%20September%2030,%202025%20vs%202024) | Metric | YTD 2025 Average Balance (in thousands) | YTD 2025 Rate | YTD 2024 Average Balance (in thousands) | YTD 2024 Rate | | :-------------------------------- | :----------------------------------- | :----------- | :----------------------------------- | :----------- | | Total interest-earning assets | $4,018,150 | 5.53% | $3,757,468 | 5.46% | | Total interest-bearing liabilities | $2,769,379 | 2.59% | $2,521,031 | 2.67% | | Net interest spread | - | 2.95% | - | 2.79% | | Net interest margin | - | 3.75% | - | 3.67% | - Detailed breakdown of average balances and rates for interest-earning assets (loans, securities, cash) and interest-bearing liabilities (deposits, borrowed funds) is provided[24](index=24&type=chunk)[26](index=26&type=chunk) - Includes calculations for net interest spread and net interest margin on a fully taxable equivalent basis[24](index=24&type=chunk)[26](index=26&type=chunk) ```

Core Viewpoint - Bank First Corporation has received all necessary regulatory approvals to proceed with its merger with Centre 1 Bancorp, which is set to close on January 1, 2026, pending customary closing conditions and shareholder approval from Centre [1][2]. Group 1: Merger Details - The merger will allow Bank First to operate under a unified brand, enhancing its commitment to long-term growth and community-focused banking [2]. - Following the merger, First National Bank and Trust will operate as a division of Bank First until a system conversion is expected in the second quarter of 2026, after which all branches will transition to the Bank First name [2]. Group 2: Company Profiles - Bank First Corporation, headquartered in Manitowoc, Wisconsin, has total assets of approximately $4.4 billion and offers a range of financial services including commercial, mortgage, and consumer lending [3]. - Centre 1 Bancorp, based in Beloit, Wisconsin, operates The First National Bank and Trust Company, which has a strong presence in southern Wisconsin and northern Illinois, focusing on full-service banking and exceptional customer service [4].

Core Viewpoint - The major financial institutions have shown strong performance, which is expected to positively impact regional and community banks in the future, despite recent selloffs in regional bank stocks [2][3]. Group 1: Market Performance - Major banks like Wells Fargo, Morgan Stanley, and Bank of America have each increased by over 5% since Monday, while regional bank stocks have been declining [1]. - The S&P regional bank ETF is on track for its fourth consecutive negative week, down nearly 10% since early September [1]. Group 2: Future Outlook - There is a belief that the strong results from major banks will create a positive spillover effect to smaller banks [2]. - The current selloff in regional banks is attributed to fear stemming from past financial crises, leading to cautious investor behavior [3][4]. Group 3: Investment Opportunities - Regional banks are expected to benefit from stable and slightly expanding net interest margins, along with an increase in mergers and acquisitions (M&A) activity in the banking sector [7][8]. - Specific banks like Huntington Bank Shares and Third Coast Bank Shares are highlighted as attractive investment opportunities due to their strong growth metrics and reasonable valuations [10][12]. Group 4: Specific Bank Analysis - Huntington Bank Shares is noted for having the best core deposit growth among its peers and is expanding into Texas, which is seen as a significant market opportunity [10]. - Third Coast Bank Shares has the fastest growing tangible book value per share in Texas and has improved its return on assets (ROA) significantly, making it a strong value proposition in the banking sector [12][13].

Core Insights - Sobha Realty has successfully raised $750 million through its inaugural green sukuk, marking the largest issuance by a real estate developer globally [2] - The sukuk has a five-year maturity, set to mature in 2030, and is part of a $1.5 billion trust certificate issuance program [2] - The sukuk will be listed on both the London Stock Exchange and Nasdaq Dubai [2] Investor Demand and Pricing - Investor demand for the sukuk reached approximately $2.1 billion, which is 2.8 times the issue size, allowing Sobha to tighten pricing by 50 basis points from initial thoughts [3] - The sukuk was priced at a profit rate of 7.125% per annum, with an effective yield of 7.375% [3] - Regional investors accounted for 56% of allocations, while international investors made up 44% [3] Use of Proceeds - Proceeds from the sukuk will be utilized to finance or refinance projects under Sobha's Green Financing Framework, which aligns with the International Capital Market Association's Green Bond Principles and the Loan Market Association's Green Loan Principles [4] - The framework has received a second-party opinion from DNV [4] Company Statement - The chairman of Sobha Group, Ravi Menon, emphasized that the success of the green sukuk issuance reflects the market's recognition of Sobha Realty's strong financial position and commitment to sustainable development [5] Sukuk Ratings - The sukuk is expected to receive ratings of Ba2 (Stable) from Moody's and BB (Stable) from S&P, which aligns with the corporate credit rating of the obligor, PNC Investments [6] Joint Coordinators and Advisors - Dubai Islamic Bank, Emirates NBD Capital, J.P. Morgan, Mashreqbank, and Standard Chartered served as joint global coordinators for the sukuk issuance [7] - Additional joint lead managers and bookrunners included several banks such as Abu Dhabi Commercial Bank and Deutsche Bank [7] - Deutsche Bank and Emirates NBD Capital acted as joint ESG structuring coordinators, with legal advice provided by Clifford Chance and Dentons [8]

```markdown [PART I – FINANCIAL INFORMATION](index=3&type=section&id=Part%20I.%20Financial%20Information) This section details the company's unaudited financial statements, management's analysis, market risk, and internal controls [ITEM 1. FINANCIAL STATEMENTS](index=3&type=section&id=ITEM%201.%20Financial%20Statements) This section presents Bank First Corporation's unaudited consolidated financial statements, detailing balance sheets, income, and cash flows [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets%20%E2%80%93%20June%2030%2C%202025%20(unaudited)%20and%20December%2031%2C%202024) This section provides a comparative overview of the company's financial position at June 30, 2025, and December 31, 2024 Total Assets (in thousands) | Date | Amount | | :--- | :--- | | June 30, 2025 | $4,365,082 | | December 31, 2024 | $4,495,060 | | **Change** | **($129,978)** | | **% Change** | **-2.9%** | Cash and Cash Equivalents (in thousands) | Date | Amount | | :--- | :--- | | June 30, 2025 | $120,328 | | December 31, 2024 | $261,332 | | **Change** | **($141,004)** | | **% Change** | **-53.9%** | Loans, net (in thousands) | Date | Amount | | :--- | :--- | | June 30, 2025 | $3,536,065 | | December 31, 2024 | $3,473,017 | | **Change** | **$63,048** | | **% Change** | **1.8%** | Total Deposits (in thousands) | Date | Amount | | :--- | :--- | | June 30, 2025 | $3,595,424 | | December 31, 2024 | $3,661,073 | | **Change** | **($65,649)** | | **% Change** | **-1.8%** | Total Stockholders' Equity (in thousands) | Date | Amount | | :--- | :--- | | June 30, 2025 | $612,333 | | December 31, 2024 | $639,683 | | **Change** | **($27,350)** | | **% Change** | **-4.3%** | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income%20%E2%80%93%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) This section presents the company's consolidated income statements for the three and six months ended June 30, 2025 and 2024 Net Income (Three Months Ended June 30) (in thousands) | Year | Amount | | :--- | :--- | | 2025 | $16,875 | | 2024 | $16,059 | | **Change** | **$816** | | **% Change** | **5.1%** | Net Income (Six Months Ended June 30) (in thousands) | Year | Amount | | :--- | :--- | | 2025 | $35,116 | | 2024 | $31,471 | | **Change** | **$3,645** | | **% Change** | **11.6%** | Net Interest Income (Three Months Ended June 30) (in thousands) | Year | Amount | | :--- | :--- | | 2025 | $36,702 | | 2024 | $33,007 | | **Change** | **$3,695** | | **% Change** | **11.2%** | Net Interest Income (Six Months Ended June 30) (in thousands) | Year | Amount | | :--- | :--- | | 2025 | $73,239 | | 2024 | $66,356 | | **Change** | **$6,883** | | **% Change** | **10.4%** | Earnings per share - basic (Six Months Ended June 30) | Year | EPS | | :--- | :--- | | 2025 | $3.53 | | 2024 | $3.10 | | **Change** | **$0.43** | | **% Change** | **13.9%** | [Consolidated Statements of Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20%E2%80%93%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) This section presents the company's consolidated comprehensive income statements for the three and six months ended June 30, 2025 and 2024 Comprehensive Income (Three Months Ended June 30) (in thousands) | Year | Amount | | :--- | :--- | | 2025 | $17,718 | | 2024 | $16,099 | | **Change** | **$1,619** | | **% Change** | **10.1%** | Comprehensive Income (Six Months Ended June 30) (in thousands) | Year | Amount | | :--- | :--- | | 2025 | $36,706 | | 2024 | $30,846 | | **Change** | **$5,860** | | **% Change** | **19.0%** | Unrealized holding gains (losses) arising during period (Six Months Ended June 30) (in thousands) | Year | Amount | | :--- | :--- | | 2025 | $2,010 | | 2024 | ($781) | | **Change** | **$2,791** | [Consolidated Statements of Changes in Stockholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity%20%E2%80%93%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) This section details changes in stockholders' equity for the periods presented, including net income, dividends, and stock repurchases Total Stockholders' Equity (in thousands) | Date | Amount | | :--- | :--- | | June 30, 2025 | $612,333 | | January 1, 2025 | $639,683 | | **Change** | **($27,350)** | | **% Change** | **-4.3%** | - Cash dividends for the six months ended June 30, 2025, totaled **$43,639 thousand**, including **$39,148 thousand** in Q2 2025 and **$4,491 thousand** in Q1 2025[17](index=17&type=chunk) - Purchase of treasury stock for the six months ended June 30, 2025, totaled **$22,043 thousand**, including **$15,662 thousand** in Q2 2025 and **$6,381 thousand** in Q1 2025[17](index=17&type=chunk) - Net income for the six months ended June 30, 2025, totaled **$35,116 thousand**, including **$16,875 thousand** in Q2 2025 and **$18,241 thousand** in Q1 2025[17](index=17&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20%E2%80%93%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) This section presents the company's consolidated cash flow statements for the six months ended June 30, 2025 and 2024 Net cash provided by operating activities (Six Months Ended June 30) (in thousands) | Year | Amount | | :--- | :--- | | 2025 | $18,022 | | 2024 | $16,263 | | **Change** | **$1,759** | | **% Change** | **10.8%** | Net cash used in investing activities (Six Months Ended June 30) (in thousands) | Year | Amount | | :--- | :--- | | 2025 | ($2,769) | | 2024 | ($69,819) | | **Change** | **$67,050** | Net cash used in financing activities (Six Months Ended June 30) (in thousands) | Year | Amount | | :--- | :--- | | 2025 | ($156,257) | | 2024 | ($94,962) | | **Change** | **($61,295)** | | **% Change** | **64.5%** | Cash and cash equivalents at end of period (Six Months Ended June 30) (in thousands) | Year | Amount | | :--- | :--- | | 2025 | $120,328 | | 2024 | $98,950 | | **Change** | **$21,378** | | **% Change** | **21.6%** | [Notes to Unaudited Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) This section provides detailed notes to the unaudited consolidated financial statements, explaining accounting policies and estimates - Bank First Corporation operates through its wholly-owned subsidiary, Bank First, N.A., a full-service financial institution with **27 locations** in Wisconsin[24](index=24&type=chunk) - No material changes to critical accounting policies or estimates (business combinations, core deposit intangibles, acquired loans, ACL-Loans) since the 2024 Annual Report[27](index=27&type=chunk)[28](index=28&type=chunk) - Recently issued accounting standards include ASU 2023-06 (Disclosure Improvements), ASU 2023-09 (Income Taxes), and ASU 2024-03 (Expense Disaggregation Disclosures), with varying effective dates and anticipated impacts on disclosures[30](index=30&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk) [NOTE 1 – BASIS OF PRESENTATION](index=9&type=section&id=NOTE%201%20%E2%80%93%20BASIS%20OF%20PRESENTATION) This note outlines the basis of presentation for the interim unaudited consolidated financial statements, adhering to GAAP and SEC requirements - Interim unaudited consolidated financial statements are prepared in accordance with GAAP for interim financial information and SEC instructions, with certain information and footnote disclosures omitted or abbreviated[25](index=25&type=chunk) - No material changes or developments with respect to critical accounting policies and estimates (business combinations, core deposit intangibles, acquired loans, and ACL-Loans) as previously disclosed in the Company's Annual Report[27](index=27&type=chunk)[28](index=28&type=chunk) - ASU 2023-09 (Income Taxes) is effective for annual periods beginning after December 15, 2024, and will require expanded disclosure related to income tax exposure[31](index=31&type=chunk) [NOTE 2 – EARNINGS PER SHARE](index=10&type=section&id=NOTE%202%20%E2%80%93%20EARNINGS%20PER%20SHARE) This note provides details on basic and diluted earnings per common share for the periods presented Basic Earnings Per Common Share (Three Months Ended June 30) | Year | EPS | | :--- | :--- | | 2025 | $1.71 | | 2024 | $1.59 | | **Change** | **$0.12** | | **% Change** | **7.5%** | Basic Earnings Per Common Share (Six Months Ended June 30) | Year | EPS | | :--- | :--- | | 2025 | $3.53 | | 2024 | $3.10 | | **Change** | **$0.43** | | **% Change** | **13.9%** | Diluted Earnings Per Common Share (Six Months Ended June 30) | Year | EPS | | :--- | :--- | | 2025 | $3.53 | | 2024 | $3.10 | | **Change** | **$0.43** | | **% Change** | **13.9%** | [NOTE 3 – SECURITIES](index=11&type=section&id=NOTE%203%20%E2%80%93%20SECURITIES) This note details the company's available-for-sale and held-to-maturity securities, including amortized cost and fair value Available for Sale Securities (June 30, 2025) (in thousands) | Metric | Amount | | :--- | :--- | | Amortized Cost | $178,047 | | Gross Unrealized Gains | $190 | | Gross Unrealized Losses | ($11,028) | | Estimated Fair Value | $167,209 | Held to Maturity Securities (June 30, 2025) (in thousands) | Metric | Amount | | :--- | :--- | | Amortized Cost | $109,854 | | Gross Unrealized Gains | $1,046 | | Gross Unrealized Losses | ($478) | | Estimated Fair Value | $110,422 | - Unrealized losses on securities are attributed to changes in interest rates, market spreads, and market conditions, not credit deterioration. The Company does not intend to sell these securities and expects to recover amortized cost[37](index=37&type=chunk) - Carrying values of securities pledged to secure public deposits and for other purposes were approximately **$196.5 million** at June 30, 2025, down from **$273.4 million** at December 31, 2024[41](index=41&type=chunk) [NOTE 4 – LOANS, ALLOWANCE FOR CREDIT LOSSES, AND CREDIT QUALITY](index=13&type=section&id=NOTE%204%20%E2%80%93%20LOANS%2C%20ALLOWANCE%20FOR%20CREDIT%20LOSSES%2C%20AND%20CREDIT%20QUALITY) This note provides detailed information on the loan portfolio, allowance for credit losses, and credit quality metrics Loans, net of ACL-Loans (in thousands) | Date | Amount | | :--- | :--- | | June 30, 2025 | $3,537,463 | | December 31, 2024 | $3,474,774 | | **Change** | **$62,689** | | **% Change** | **1.8%** | Allowance for Credit Losses - Loans (ACL-Loans) (in thousands) | Date | Amount | | :--- | :--- | | June 30, 2025 | $44,292 | | December 31, 2024 | $44,151 | | **Change** | **$141** | | **% Change** | **0.3%** | Provision for Credit Losses (Six Months Ended June 30) (in thousands) | Year | Amount | | :--- | :--- | | 2025 | $600 | | 2024 | $200 | | **Change** | **$400** | | **% Change** | **200.0%** | Non-Accrual Loans (in thousands) | Date | Amount | | :--- | :--- | | June 30, 2025 | $13,034 | | December 31, 2024 | $6,826 | | **Change** | **$6,208** | | **% Change** | **90.9%** | - The Allowance for Credit Losses on Unfunded Commitments (ACL-Unfunded Commitments) remained stable at **$2.6 million** at June 30, 2025, and December 31, 2024[46](index=46&type=chunk) [NOTE 5 – MORTGAGE SERVICING RIGHTS](index=20&type=section&id=NOTE%205%20%E2%80%93%20MORTGAGE%20SERVICING%20RIGHTS) This note details the fair value and unpaid principal balance of mortgage servicing rights, along with key economic assumptions Fair Value of MSR (Six Months Ended June 30) (in thousands) | Date | Amount | | :--- | :--- | | June 30, 2025 | $13,445 | | December 31, 2024 | $13,369 | | **Change** | **$76** | | **% Change** | **0.6%** | Unpaid principal balance of loans serviced for others (Six Months Ended June 30) (in thousands) | Date | Amount | | :--- | :--- | | June 30, 2025 | $1,173,121 | | December 31, 2024 | $1,172,311 | | **Change** | **$810** | | **% Change** | **0.1%** | - Primary economic assumptions for MSR valuation include constant prepayment speeds of **8.0%** (June 30, 2025) and **8.2%** (Dec 31, 2024), and discount rates of **10.18%** for both periods[60](index=60&type=chunk) [NOTE 6 – NOTES PAYABLE](index=21&type=section&id=NOTE%206%20%E2%80%93%20NOTES%20PAYABLE) This note provides information on the company's notes payable, primarily FHLB advances, and available borrowing capacity Notes Payable (FHLB advances) (in thousands) | Date | Amount | | :--- | :--- | | June 30, 2025 | $109,915 | | December 31, 2024 | $135,372 | | **Change** | **($25,457)** | | **% Change** | **-18.8%** | - The Company had borrowing availability at the FHLB totaling **$501.6 million** as of June 30, 2025, in addition to existing borrowings[62](index=62&type=chunk) [NOTE 7 – SUBORDINATED NOTES AND JUNIOR SUBORDINATED DEBENTURES](index=21&type=section&id=NOTE%207%20%E2%80%93%20SUBORDINATED%20NOTES%20AND%20JUNIOR%20SUBORDINATED%20DEBENTURES) This note details the company's outstanding subordinated notes and junior subordinated debentures, including their terms - Outstanding subordinated notes totaled **$12,000 thousand** at both June 30, 2025, and December 31, 2024[63](index=63&type=chunk)[64](index=64&type=chunk) - These notes have 10-year maturities, carry fixed interest rates (**5.0%** and **5.25%** respectively) for initial periods, then variable rates, and qualify for Tier 2 capital for regulatory purposes[63](index=63&type=chunk)[64](index=64&type=chunk) [NOTE 8 – REGULATORY MATTERS](index=22&type=section&id=NOTE%208%20%E2%80%93%20REGULATORY%20MATTERS) This note confirms the company's and its subsidiary's compliance with all capital adequacy requirements - Both Bank First Corporation and Bank First, N.A. met all capital adequacy requirements, including the **2.5% conservation buffer**, as of June 30, 2025, and December 31, 2024[66](index=66&type=chunk) Bank First, N.A. Capital Ratios (June 30, 2025) | Ratio | Actual | Minimum for Capital Adequacy | Minimum for Well Capitalized | | :--- | :--- | :--- | :--- | | Total Capital | 12.19% | 8.00% | 10.00% | | Tier 1 Capital | 11.03% | 6.00% | 8.00% | | Common Equity Tier 1 | 11.03% | 4.50% | 6.50% | | Tier 1 Leverage | 9.66% | 4.00% | 5.00% | - The Bank does not intend to opt into the Community Bank Leverage Ratio Framework[208](index=208&type=chunk) [NOTE 9 – SEGMENT INFORMATION](index=24&type=section&id=NOTE%209%20%E2%80%93%20SEGMENT%20INFORMATION) This note identifies the company's single reportable segment as banking operations, with performance evaluated on consolidated metrics - The Company's single reportable segment is banking operations, as determined by the Chief Executive Officer[68](index=68&type=chunk) - Performance is evaluated based on consolidated net income, return on assets, and benchmarking against competitors, with revenue streams and significant expenses assessed for product pricing and resource allocation[68](index=68&type=chunk) [NOTE 10 – COMMITMENTS AND CONTINGENCIES](index=24&type=section&id=NOTE%2010%20%E2%80%93%20COMMITMENTS%20AND%20CONTINGENCIES) This note outlines the company's off-balance-sheet commitments and contingencies, including rate-lock commitments Rate-Lock Commitments (Notional Amount) (in thousands) | Date | Amount | | :--- | :--- | | June 30, 2025 | $15,900 | | December 31, 2024 | $8,200 | | **Change** | **$7,700** | | **% Change** | **93.9%** | Total Commitments Outstanding (June 30, 2025) (in thousands) | Commitment Type | Amount | | :--- | :--- | | Unused lines of credit | $733,426 | | Standby and direct pay letters of credit | $9,384 | | Credit card arrangements | $24,985 | | **Total** | **$767,795** | - The Company follows the same credit policies in making commitments as it does for on-balance-sheet instruments[71](index=71&type=chunk)[214](index=214&type=chunk) [NOTE 11 – FAIR VALUE MEASUREMENTS](index=25&type=section&id=NOTE%2011%20%E2%80%93%20FAIR%20VALUE%20MEASUREMENTS) This note details fair value measurements for financial instruments, categorizing them by valuation input levels Recurring Fair Value Measurements (June 30, 2025) (in thousands) | Asset Type | Fair Value | Level | | :--- | :--- | :--- | | Securities available for sale | $167,209 | Level 2 | | Mortgage servicing rights | $13,445 | Level 2 | Non-Recurring Fair Value Measurements (June 30, 2025) (in thousands) | Asset Type | Fair Value | Level | | :--- | :--- | :--- | | Loans individually evaluated, net of reserve | $10,896 | Level 3 | - Significant unobservable inputs for Level 3 assets (loans individually evaluated) include collateral discounts and discount rates, with a weighted average discount of **21%** as of June 30, 2025[78](index=78&type=chunk) Financial Instruments Not Measured at Fair Value (June 30, 2025) (in thousands) | Instrument | Carrying Amount | Total Fair Value | | :--- | :--- | :--- | | Cash and cash equivalents | $120,328 | $120,328 | | Securities held to maturity | $109,854 | $110,422 | | Loans, net | $3,536,065 | $3,393,648 | | Deposits | $3,595,424 | $3,304,035 | [NOTE 12 – STOCK BASED COMPENSATION](index=28&type=section&id=NOTE%2012%20%E2%80%93%20STOCK%20BASED%20COMPENSATION) This note provides information on stock-based compensation expense, unrecognized costs, and outstanding restricted stock awards - Compensation expense for restricted stock was **$0.5 million** for the three months ended June 30, 2025, and **$1.0 million** for the six months ended June 30, 2025[82](index=82&type=chunk) - As of June 30, 2025, there was **$3.3 million** of unrecognized compensation cost related to non-vested restricted stock awards, expected to be recognized over a weighted average period of **1.75 years**[83](index=83&type=chunk) - Restricted stock awards outstanding at June 30, 2025, totaled **46,727 shares** with a weighted average grant-date fair value of **$94.77**[84](index=84&type=chunk) [NOTE 13 – SUBSEQUENT EVENT](index=28&type=section&id=NOTE%2013%20%E2%80%93%20SUBSEQUENT%20EVENT) This note discloses a significant subsequent event: a merger agreement with Centre 1 Bancorp, Inc., expected to close in January 2026 - On July 18, 2025, the Company entered into a merger agreement with Centre 1 Bancorp, Inc., parent company of First National Bank and Trust Company (FNBT)[85](index=85&type=chunk) - The transaction is expected to close on January 1, 2026, subject to customary closing conditions including regulatory approvals[85](index=85&type=chunk) - Based on combined results as of June 30, 2025, the merged entity would have total assets of approximately **$5.9 billion**, loans of approximately **$4.6 billion**, and deposits of approximately **$4.9 billion**[85](index=85&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=29&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes Bank First Corporation's financial condition and results of operations, highlighting net income, balance sheet, and capital - Net income increased by **$0.8 million (5.1%)** for Q2 2025 and **$3.6 million (11.6%)** for H1 2025, primarily driven by higher net interest income[102](index=102&type=chunk)[115](index=115&type=chunk) - Total loans increased by **$63.2 million (1.8%)** to **$3.58 billion** as of June 30, 2025, driven by demand for new credit[142](index=142&type=chunk) - A continued shift from noninterest-bearing to interest-bearing deposits was observed due to rising interest rates[172](index=172&type=chunk) - The company entered into a merger agreement with Centre 1 Bancorp, Inc., expected to close January 1, 2026, which will significantly increase total assets, loans, and deposits[85](index=85&type=chunk) [FORWARD-LOOKING STATEMENTS](index=29&type=section&id=FORWARD-LOOKING%20STATEMENTS) This section clarifies that forward-looking statements are based on current expectations and are subject to risks and uncertainties - Forward-looking statements are based on current expectations, estimates, and projections about the Company's future plans, results, strategies, and expectations[88](index=88&type=chunk) - These statements are subject to risks, assumptions, and uncertainties that are difficult to predict and beyond the Company's control, which could cause actual results to differ materially[88](index=88&type=chunk) - The Company does not undertake any obligation to publicly update or review any forward-looking statement, except as required by law[88](index=88&type=chunk) [OVERVIEW](index=29&type=section&id=OVERVIEW) This section provides an overview of Bank First Corporation, its subsidiary Bank First, N.A., and its banking operations - Bank First Corporation serves as the holding company for Bank First, N.A., a nationally-chartered bank headquartered in Manitowoc, Wisconsin[90](index=90&type=chunk) - The Bank operates **twenty-seven banking locations** across various counties in Wisconsin, offering loan, deposit, and treasury management products[90](index=90&type=chunk) - A significant portion of the Bank's income is derived from interest received on loans and investments, with deposits being the primary source of funding[91](index=91&type=chunk) [SELECTED HISTORICAL CONSOLIDATED FINANCIAL DATA](index=31&type=section&id=SELECTED%20HISTORICAL%20CONSOLIDATED%20FINANCIAL%20DATA) This section presents selected historical consolidated financial data, including net income, EPS, total assets, and key ratios Net Income (Six Months Ended June 30) (in thousands) | Year | Amount | | :--- | :--- | | 2025 | $35,116 | | 2024 | $31,471 | | **Change** | **$3,645** | | **% Change** | **11.6%** | Basic EPS (Six Months Ended June 30) | Year | EPS | | :--- | :--- | | 2025 | $3.53 | | 2024 | $3.10 | | **Change** | **$0.43** | | **% Change** | **13.9%** | Total Assets (June 30) (in thousands) | Year | Amount | | :--- | :--- | | 2025 | $4,365,082 | | 2024 | $4,145,820 | | **Change** | **$219,262** | | **% Change** | **5.3%** | Return on Average Assets (Annualized, Six Months Ended June 30) | Year | Ratio | | :--- | :--- | | 2025 | 1.59% | | 2024 | 1.54% | | **Change** | **0.05 pp** | Net Interest Margin, taxable equivalent (Annualized, Six Months Ended June 30) | Year | Ratio | | :--- | :--- | | 2025 | 3.69% | | 2024 | 3.62% | | **Change** | **0.07 pp** | [GAAP RECONCILIATION AND MANAGEMENT EXPLANATION OF NON-GAAP FINANCIAL MEASURES](index=32&type=section&id=GAAP%20RECONCILIATION%20AND%20MANAGEMENT%20EXPLANATION%20OF%20NON-GAAP%20FINANCIAL%20MEASURES) This section reconciles non-GAAP financial measures like tangible book value and tangible equity to GAAP equivalents, explaining their utility - The non-GAAP financial measures presented are tangible book value per common share and tangible equity to tangible assets[96](index=96&type=chunk) - These non-GAAP measures exclude the impact of goodwill and other intangibles to allow for easier comparison of the Company's capital position to other companies[100](index=100&type=chunk) Reconciliation of Tangible Assets and Equity (June 30, 2025) (in thousands) | Metric | GAAP | Adjustment | Non-GAAP | | :--- | :--- | :--- | :--- | | Total Assets | $4,365,082 | ($193,738) | $4,171,344 | | Total Stockholders' Equity | $612,333 | ($193,738) | $418,595 | - Tangible book value per common share was **$42.57** and tangible common equity to tangible assets was **10.04%** as of June 30, 2025[101](index=101&type=chunk) [RESULTS OF OPERATIONS](index=33&type=section&id=RESULTS%20OF%20OPERATIONS) This section analyzes the company's financial performance for the three and six months ended June 30, 2025 and 2024 - Net income increased by **$0.8 million (5.1%)** for the three months ended June 30, 2025, and by **$3.6 million (11.6%)** for the six months ended June 30, 2025[102](index=102&type=chunk)[115](index=115&type=chunk) - The increase in net income was primarily driven by new and renewed loans pricing at higher yields, while deposit costs began to reprice lower[102](index=102&type=chunk)[115](index=115&type=chunk) - Noninterest expense increased due to elevated occupancy costs from multiple branch remodels and a new branch opening, as well as increased data processing expenditures for digital banking platform upgrades[113](index=113&type=chunk)[124](index=124&type=chunk) [Results of Operations for the Three Months Ended June 30, 2025 and June 30, 2024](index=33&type=section&id=Results%20of%20Operations%20for%20the%20Three%20Months%20Ended%20June%2030%2C%202025%20and%20June%2030%2C%202024) This section details the company's financial results for the three months ended June 30, 2025 and 2024 Net Income (Three Months Ended June 30) (in thousands) | Year | Amount | | :--- | :--- | | 2025 | $16,875 | | 2024 | $16,059 | | **Change** | **$816** | | **% Change** | **5.1%** | Net Interest Income (Three Months Ended June 30) (in thousands) | Year | Amount | | :--- | :--- | | 2025 | $36,702 | | 2024 | $33,007 | | **Change** | **$3,695** | | **% Change** | **11.2%** | Total Interest Income (Three Months Ended June 30) (in thousands) | Year | Amount | | :--- | :--- | | 2025 | $54,575 | | 2024 | $49,347 | | **Change** | **$5,228** | | **% Change** | **10.6%** | Total Noninterest Income (Three Months Ended June 30) (in thousands) | Year | Amount | | :--- | :--- | | 2025 | $4,921 | | 2024 | $5,877 | | **Change** | **($956)** | | **% Change** | **-16%** | Total Noninterest Expense (Three Months Ended June 30) (in thousands) | Year | Amount | | :--- | :--- | | 2025 | $20,756 | | 2024 | $19,057 | | **Change** | **$1,699** | | **% Change** | **9%** | [Results of Operations for the Six Months Ended June 30, 2025 and June 30, 2024](index=36&type=section&id=Results%20of%20Operations%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025%20and%20June%2030%2C%202024) This section details the company's financial results for the six months ended June 30, 2025 and 2024 Net Income (Six Months Ended June 30) (in thousands) | Year | Amount | | :--- | :--- | | 2025 | $35,116 | | 2024 | $31,471 | | **Change** | **$3,645** | | **% Change** | **11.6%** | Net Interest Income (Six Months Ended June 30) (in thousands) | Year | Amount | | :--- | :--- | | 2025 | $73,239 | | 2024 | $66,356 | | **Change** | **$6,883** | | **% Change** | **10.4%** | Total Interest Income (Six Months Ended June 30) (in thousands) | Year | Amount | | :--- | :--- | | 2025 | $109,623 | | 2024 | $98,619 | | **Change** | **$11,004** | | **% Change** | **11.2%** | Total Noninterest Income (Six Months Ended June 30) (in thousands) | Year | Amount | | :--- | :--- | | 2025 | $11,509 | | 2024 | $10,274 | | **Change** | **$1,235** | | **% Change** | **12%** | Total Noninterest Expense (Six Months Ended June 30) (in thousands) | Year | Amount | | :--- | :--- | | 2025 | $41,360 | | 2024 | $39,381 | | **Change** | **$1,979** | | **% Change** | **5%** | - The effective tax rate for the six months ended June 30, 2025, was **17.9%**, compared to **15.1%** in 2024. The lower rate in 2024 was due to a **$1.3 million** reduction in estimated tax liability from new state tax legislation[126](index=126&type=chunk) [NET INTEREST MARGIN](index=40&type=section&id=NET%20INTEREST%20MARGIN) This section analyzes the company's net interest margin, earning asset yields, and cost of funds for the periods presented Net Interest Margin (Taxable Equivalent, Three Months Ended June 30) | Year | NIM | | :--- | :--- | | 2025 | 3.72% | | 2024 | 3.63% | | **Change** | **0.09 pp** | Net Interest Margin (Taxable Equivalent, Six Months Ended June 30) | Year | NIM | | :--- | :--- | | 2025 | 3.69% | | 2024 | 3.62% | | **Change** | **0.07 pp** | Earning Asset Yield (Six Months Ended June 30) | Year | Yield | | :--- | :--- | | 2025 | 5.50% | | 2024 | 5.37% | | **Change** | **0.13 pp** | Cost of Funds (Six Months Ended June 30) | Year | Cost | | :--- | :--- | | 2025 | 2.62% | | 2024 | 2.61% | | **Change** | **0.01 pp** | [Rate/Volume Analysis](index=42&type=section&id=Rate%2FVolume%20Analysis) This section provides a rate/volume analysis of changes in net interest income and interest income from loans Change in Net Interest Income (Three Months Ended June 30, 2025 vs 2024) (in thousands) | Factor | Increase/(Decrease) | | :--- | :--- | | Volume | $5,802 | | Rate | $9,055 | | **Total** | **$14,857** | Change in Net Interest Income (Six Months Ended June 30, 2025 vs 2024) (in thousands) | Factor | Increase/(Decrease) | | :--- | :--- | | Volume | $6,572 | | Rate | $8,089 | | **Total** | **$14,661** | Interest Income - Loans (Six Months Ended June 30, 2025 vs 2024) (in thousands) | Factor | Increase/(Decrease) | | :--- | :--- | | Volume | $8,479 | | Rate | $6,461 | | **Total** | **$14,940** | [CHANGES IN FINANCIAL CONDITION](index=42&type=section&id=CHANGES%20IN%20FINANCIAL%20CONDITION) This section discusses significant changes in the company's financial condition, including assets, cash, investments, loans, deposits, and equity Total Assets (in thousands) | Date | Amount | | :--- | :--- | | June 30, 2025 | $4,365,082 | | December 31, 2024 | $4,495,060 | | **Change** | **($129,978)** | | **% Change** | **-2.9%** | - Cash and cash equivalents decreased by **$141.0 million** to **$120.3 million** at June 30, 2025, from **$261.3 million** at December 31, 2024, due to reduced seasonal customer deposits and loan portfolio growth[135](index=135&type=chunk) - Investment securities decreased by **$56.7 million** to **$277.1 million** at June 30, 2025, from **$333.8 million** at December 31, 2024, primarily due to the maturity of short-duration securities[136](index=136&type=chunk) - Net loans increased by **$63.0 million** to **$3.54 billion** at June 30, 2025, from **$3.47 billion** at December 31, 2024[137](index=137&type=chunk) - Deposits decreased by **$65.6 million (1.8%)** to **$3.60 billion** at June 30, 2025, from **$3.66 billion** at December 31, 2024[138](index=138&type=chunk) - Stockholders' equity decreased by **$27.4 million (4.3%)** to **$612.3 million** at June 30, 2025, from **$639.7 million** at December 31, 2024, due to share repurchases and dividends[139](index=139&type=chunk) [LOANS](index=44&type=section&id=LOANS) This section provides a detailed analysis of the company's loan portfolio, including its composition, growth drivers, and maturity profiles Total Loans (in thousands) | Date | Amount | | :--- | :--- | | June 30, 2025 | $3,580,357 | | December 31, 2024 | $3,517,168 | | **Change** | **$63,189** | | **% Change** | **1.8%** | Loan Portfolio Composition (June 30, 2025) (in thousands) | Loan Type | Amount | % of Total | | :--- | :--- | :--- | | Commercial & industrial | $628,527 | 18% | | Commercial real estate (Owner occupied) | $841,749 | 23% | | Commercial real estate (Non-owner occupied) | $518,636 | 14% | | Multi-family | $377,218 | 11% | | Construction & development | $249,857 | 7% | | Residential 1-4 family | $891,685 | 25% | | Consumer | $57,855 | 2% | | Other loans | $14,830 | 0% | - Loan growth was primarily driven by solid demand for new credit from existing customer relationships[142](index=142&type=chunk) [Loan categories](index=46&type=section&id=Loan%20categories) This section breaks down the loan portfolio by categories such as Commercial & Industrial, Commercial Real Estate, Residential, and Consumer loans - Commercial and Industrial (C&I) loans totaled **$628.5 million (18% of total loans)** at June 30, 2025, primarily to small and middle-market businesses, secured by corporate assets and personal guarantees[144](index=144&type=chunk)[145](index=145&type=chunk) - Commercial Real Estate (CRE) loans totaled **$1.74 billion (48% of total loans)** at June 30, 2025, with growth primarily in multi-family real estate due to housing shortages[146](index=146&type=chunk) - Construction and Development (C&D) loans totaled **$249.9 million (7% of total loans)** at June 30, 2025, are short-term and require borrower equity injection prior to disbursement[148](index=148&type=chunk)[149](index=149&type=chunk) - Residential 1-4 family loans amounted to **$891.7 million (25% of total loans)** at June 30, 2025, including conforming and 'jumbo' loans, with servicing rights retained on all loans sold to the secondary market[150](index=150&type=chunk)[151](index=151&type=chunk)[153](index=153&type=chunk) - Consumer loans totaled **$57.9 million (2% of total loans)** at June 30, 2025, and generally carry greater risk due to rapidly depreciable assets and dependence on borrower's financial stability[155](index=155&type=chunk)[156](index=156&type=chunk) [Loan Portfolio Maturities](index=48&type=section&id=Loan%20Portfolio%20Maturities) This section presents the maturity distribution of the loan portfolio and the breakdown between fixed and floating rate loans Total Loans by Maturity (June 30, 2025) (in thousands) | Maturity Period | Amount | | :--- | :--- | | One Year or Less | $533,227 | | One to Five Years | $1,368,058 | | Five to Fifteen Years | $934,476 | | Over Fifteen Years | $744,596 | | **Total** | **$3,580,357** | Fixed vs. Floating Rate Loans (June 30, 2025) (in thousands) | Rate Type | Amount | | :--- | :--- | | Fixed Rate Loans | $2,162,499 | | Floating Rate Loans | $1,417,858 | | **Total** | **$3,580,357** | [NONPERFORMING ASSETS](index=48&type=section&id=NONPERFORMING%20ASSETS) This section details the company's nonperforming assets, including nonaccrual loans and other real estate owned Total Nonperforming Assets (NPAs) (in thousands) | Date | Amount | | :--- | :--- | | June 30, 2025 | $13,597 | | December 31, 2024 | $9,237 | | **Change** | **$4,360** | | **% Change** | **47.2%** | Total Nonaccrual Loans (in thousands) | Date | Amount | | :--- | :--- | | June 30, 2025 | $13,034 | | December 31, 2024 | $6,826 | | **Change** | **$6,208** | | **% Change** | **90.9%** | Nonaccrual Loans to Total Loans Ratio | Date | Ratio | | :--- | :--- | | June 30, 2025 | 0.36% | | December 31, 2024 | 0.19% | | **Change** | **0.17 pp** | - Other Real Estate Owned (OREO) decreased to **$0** at June 30, 2025, from **$741 thousand** at December 31, 2024[162](index=162&type=chunk) [Nonaccrual Loans](index=50&type=section&id=Nonaccrual%20Loans) This section provides a detailed breakdown of nonaccrual loans by type and discusses the factors contributing to their increase - Loans are typically placed on nonaccrual status when payments are **90 days or more past due**, or when management believes principal or interest will not be collectible[163](index=163&type=chunk) - The increase in nonaccrual loans through the first six months of 2025 was primarily due to the deterioration of one customer relationship[163](index=163&type=chunk) Nonaccrual Loans by Type (June 30, 2025) (in thousands) | Loan Type | Amount | | :--- | :--- | | Commercial & industrial | $6,732 | | Commercial real estate - owner occupied | $4,828 | | Residential 1-4 family | $1,306 | | **Total** | **$13,034** | [ALLOWANCE FOR CREDIT LOSSES - LOANS](index=51&type=section&id=ALLOWANCE%20FOR%20CREDIT%20LOSSES%20-%20LOANS) This section discusses the allowance for credit losses on loans, including provision, net charge-offs, and coverage ratios - The Allowance for Credit Losses - Loans (ACL-Loans) was **$44.3 million (1.24% of total loans)** at June 30, 2025, remaining consistent due to stable economic conditions and strong asset quality[166](index=166&type=chunk) Provision for Credit Losses (Six Months Ended June 30) (in thousands) | Year | Amount | | :--- | :--- | | 2025 | $600 | | 2024 | $200 | | **Change** | **$400** | | **% Change** | **200.0%** | Net Charge-offs (Recoveries) (Six Months Ended June 30) (in thousands) | Year | Amount | | :--- | :--- | | 2025 | $809 (net charge-offs) | | 2024 | ($809) (net recoveries) | | **Change** | **$1,618** | - The ratio of ACL-Loans to nonaccrual loans was **340%** at June 30, 2025, a decrease from **647%** at December 31, 2024, reflecting the increase in nonaccrual loans[162](index=162&type=chunk) [SOURCES OF FUNDS](index=52&type=section&id=SOURCES%20OF%20FUNDS) This section details the company's primary sources of funds, including deposits and borrowings, and their composition - Deposits are the primary source of funds, accounting for approximately **82.4%** of total liabilities and equity at June 30, 2025[170](index=170&type=chunk)[171](index=171&type=chunk) Total Deposits (in thousands) | Date | Amount | | :--- | :--- | | June 30, 2025 | $3,595,424 | | December 31, 2024 | $3,661,073 | | **Change** | **($65,649)** | | **% Change** | **-1.8%** | - A continued shift from noninterest-bearing deposits to interest-bearing deposits has been observed due to prevailing interest rates[172](index=172&type=chunk) FHLB Borrowings (in thousands) | Date | Amount | | :--- | :--- | | June 30, 2025 | $109,915 | | December 31, 2024 | $135,372 | | **Change** | **($25,457)** | | **% Change** | **-18.8%** | - The Company has **$1.54 billion** in availability between borrowings and brokered deposits for future funding needs[197](index=197&type=chunk) [Deposits](index=52&type=section&id=Deposits) This section analyzes the company's deposit base, including total deposits, noninterest-bearing, and interest-bearing deposits Total Deposits (in thousands) | Date | Amount | | :--- | :--- | | June 30, 2025 | $3,595,424 | | December 31, 2024 | $3,661,073 | | **Change** | **($65,649)** | | **% Change** | **-1.8%** | Noninterest-bearing deposits (in thousands) | Date | Amount | | :--- | :--- | | June 30, 2025 | $990,027 | | December 31, 2024 | $1,024,881 | | **Change** | **($34,854)** | | **% Change** | **-3.4%** | Interest-bearing deposits (in thousands) | Date | Amount | | :--- | :--- | | June 30, 2025 | $2,605,397 | | December 31, 2024 | $2,636,192 | | **Change** | **($30,795)** | | **% Change** | **-1.2%** | - Certificates of deposit totaled **$656.7 million** at June 30, 2025, including **$20.1 million** of brokered deposits[173](index=173&type=chunk) - The long-term strategy is to minimize reliance on certificates of deposit by increasing relationship deposits in lower earning savings and demand deposit accounts[173](index=173&type=chunk) [Borrowings](index=53&type=section&id=Borrowings) This section details the company's borrowings, primarily FHLB advances and subordinated debt, including outstanding amounts FHLB Advances Outstanding (in thousands) | Date | Amount | | :--- | :--- | | June 30, 2025 | $109,915 | | December 31, 2024 | $135,372 | | **Change** | **($25,457)** | | **% Change** | **-18.8%** | - Subordinated debt remained stable at **$12.0 million** outstanding at June 30, 2025, and December 31, 2024[180](index=180&type=chunk)[181](index=181&type=chunk) Average Daily FHLB Borrowings (Six Months Ended June 30) (in thousands) | Year | Amount | | :--- | :--- | | 2025 | $134,795 | | 2024 | $37,035 | | **Change** | **$97,760** | | **% Change** | **264.0%** | Weighted Average Interest Rate on Average Daily FHLB Borrowing (Six Months Ended June 30) | Year | Rate | | :--- | :--- | | 2025 | 4.53% | | 2024 | 4.01% | | **Change** | **0.52 pp** | [INVESTMENT SECURITIES](index=54&type=section&id=INVESTMENT%20SECURITIES) This section provides an overview of the company's investment securities portfolio, including available-for-sale and held-to-maturity Total Investment Securities (in thousands) | Date | Amount | | :--- | :--- | | June 30, 2025 | $277,063 | | December 31, 2024 | $333,817 | | **Change** | **($56,754)** | | **% Change** | **-17.0%** | Available for Sale Securities (Fair Value) (in thousands) | Date | Amount | | :--- | :--- | | June 30, 2025 | $167,209 | | December 31, 2024 | $223,061 | | **Change** | **($55,852)** | | **% Change** | **-25.0%** | Held to Maturity Securities (Amortized Cost) (in thousands) | Date | Amount | | :--- | :--- | | June 30, 2025 | $109,854 | | December 31, 2024 | $110,756 | | **Change** | **($902)** | | **% Change** | **-0.8%** | - Gross unrealized losses on available-for-sale securities were **$11.0 million** at June 30, 2025, primarily due to changes in interest rates, not credit deterioration[183](index=183&type=chunk)[190](index=190&type=chunk) - No allowance for credit losses on available-for-sale or held-to-maturity securities was recognized, as no credit impairment is believed to exist[190](index=190&type=chunk)[191](index=191&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=57&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) This section assesses the company's liquidity position and capital adequacy, including regulatory capital ratios and funding sources - The Company maintains adequate liquidity through its investment portfolio, deposits, FHLB borrowings, and lines available from correspondent banks, with **$1.54 billion** in total availability[197](index=197&type=chunk) Total Stockholders' Equity (in thousands) | Date | Amount | | :--- | :--- | | June 30, 2025 | $612,333 | | December 31, 2024 | $639,683 | | **Change** | **($27,350)** | | **% Change** | **-4.3%** | - The Bank was classified as 'well capitalized' at June 30, 2025, exceeding all applicable regulatory capital requirements and the capital conservation buffer[204](index=204&type=chunk)[207](index=207&type=chunk) [Liquidity](index=57&type=section&id=Liquidity) This section defines liquidity and discusses the company's strategies for maintaining adequate cash to meet operational and commitment needs - Liquidity is defined as the Company's ability to generate adequate cash to meet its day-to-day operations and material long and short-term commitments[195](index=195&type=chunk) - The Company's highest priority is placed on growing noninterest-bearing deposits through strong community involvement[197](index=197&type=chunk) - The Company believes its present liquidity position is adequate to meet current and future needs, with no material adverse trends or events identified[197](index=197&type=chunk) [Capital Adequacy](index=57&type=section&id=Capital%20Adequacy) This section details the company's compliance with regulatory capital requirements and its 'well capitalized' status - The Bank is subject to various regulatory capital requirements administered by federal banking agencies (Federal Reserve and OCC) and was 'well capitalized' at June 30, 2025[199](index=199&type=chunk)[204](index=204&type=chunk) Bank First, N.A. Capital Ratios (June 30, 2025) | Ratio | Actual | Minimum for Well Capitalized | | :--- | :--- | :--- | | CET1 to Risk-Weighted Assets | 11.0% | 6.5% | | Tier 1 to Risk-Weighted Assets | 11.0% | 8.0% | | Total Capital to Risk-Weighted Assets | 12.2% | 10.0% | | Tier 1 to Average Assets (Leverage) | 9.7% | 5.0% | - The Bank met the then-applicable capital conservation buffer of **2.5%** as of June 30, 2025[66](index=66&type=chunk)[207](index=207&type=chunk) - The Company carried **$12.0 million** of subordinated debt as of June 30, 2025, which qualifies as Tier II capital[211](index=211&type=chunk) [FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK](index=61&type=section&id=FINANCIAL%20INSTRUMENTS%20WITH%20OFF-BALANCE-SHEET%20RISK) This section describes the company's financial instruments with off-balance-sheet risk, including loan commitments - The Company is party to financial instruments with off-balance-sheet risk, including loan commitments, standby and direct pay letters of credit, unused lines of credit, and credit card arrangements[213](index=213&type=chunk) - These instruments involve elements of credit and interest rate risk, and the Company uses the same credit policies for these as for on-balance-sheet instruments[213](index=213&type=chunk)[214](index=214&type=chunk) Total Commitments (June 30, 2025) (in thousands) | Commitment Type | Amount | | :--- | :--- | | Unused lines of credit | $733,426 | | Standby and direct pay letters of credit | $9,384 | | Credit card arrangements | $24,985 | | **Total** | **$767,795** | [Off-Balance Sheet Arrangements](index=61&type=section&id=Off-Balance%20Sheet%20Arrangements) This section details the company's off-balance sheet arrangements, such as unused lines of credit and letters of credit Off-Balance Sheet Commitments (June 30, 2025) (in thousands) | Commitment Type | Amount | | :--- | :--- | | Unused lines of credit | $733,426 | | Standby and direct pay letters of credit | $9,384 | | Credit card arrangements | $24,985 | | **Total** | **$767,795** | - These commitments do not necessarily represent future cash requirements as they often expire without being drawn upon[217](index=217&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=62&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section details the company's exposure to market risk, primarily interest rate risk, and its management strategies - The Company's primary market risk is interest rate risk, arising from its lending, investment, and deposit-taking activities[219](index=219&type=chunk) - The objective of interest rate risk management is to minimize the adverse impact of interest rate changes on net interest income and capital, while maximizing the yield-cost spread[221](index=221&type=chunk) - The Company uses various tools to manage interest rate risk, including interest rate sensitivity analysis (gap analysis), market value of portfolio equity analysis, and interest rate simulations[225](index=225&type=chunk) [Interest Rate Sensitivity](index=62&type=section&id=Interest%20Rate%20Sensitivity) This section analyzes the company's interest rate sensitivity, including estimated impacts of rate changes on net interest income - Interest rate risk is the risk to earnings and value arising from changes in market interest rates, encompassing repricing, option, yield curve, and basis risk[222](index=222&type=chunk) Estimated Percentage Change in Net Interest Income (June 30, 2025, next 12 months) | Change in Interest Rates (in Basis Points) | Percentage Change in Net Interest Income | | :--- | :--- | | +300 | (5.4)% | | +200 | (3.5)% | | +100 | (1.7)% | | -100 | (0.8)% | | -200 | (1.5)% | | -300 | (0.9)% | - The simulation assumes no growth in interest-earning assets or interest-bearing liabilities over the next 12 months[229](index=229&type=chunk) [Economic Value of Equity Analysis](index=63&type=section&id=Economic%20Value%20of%20Equity%20Analysis) This section presents the economic value of equity (EVE) analysis, measuring the sensitivity of the company's financial condition to interest rate changes - The economic value of equity (EVE) analysis measures the sensitivity of the Company's financial condition to changes in interest rates by comparing estimated changes in the present value of assets and liabilities[230](index=230&type=chunk) - As of June 30, 2025, an instantaneous **200 basis point increase** in interest rates was estimated to result in a **2.38% increase** in EVE[230](index=230&type=chunk) - An instantaneous **100 basis point decrease** in interest rates was estimated to result in a **1.45% decrease** in EVE[230](index=230&type=chunk) - These estimates are based on inherently uncertain assumptions (e.g., loan prepayment speeds, deposit maturities) and may not precisely forecast actual effects[230](index=230&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=64&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025 - The CEO and CFO concluded that the Company's disclosure controls and procedures were effective as of June 30, 2025[232](index=232&type=chunk) - No changes were made to the Company's internal control over financial reporting during the quarter ended June 30, 2025, that materially affected, or are reasonably likely to materially affect, its internal control over financial reporting[233](index=233&type=chunk) [Evaluation of Disclosure Controls and Procedures](index=64&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) This section details the CEO and CFO's conclusion on the effectiveness of the company's disclosure controls and procedures - The CEO and CFO evaluated the effectiveness of the Company's disclosure controls and procedures as of June 30, 2025[232](index=232&type=chunk) - They concluded that these controls were effective in timely recording, processing, summarizing, and reporting information required under the Exchange Act[232](index=232&type=chunk) [Changes in Internal Control Over Financial Reporting](index=64&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) This section confirms no material changes to the company's internal control over financial reporting during the quarter - No changes were made to the Company's internal control over financial reporting during the quarter ended June 30, 2025, that materially affected or are reasonably likely to materially affect it[233](index=233&type=chunk) - Internal control over financial reporting has inherent limitations and may not prevent or detect misstatements[233](index=233&type=chunk) [PART II. OTHER INFORMATION](index=64&type=section&id=Part%20II.%20Other%20Information) This section covers legal proceedings, risk factors, equity security sales, defaults, and other miscellaneous disclosures [ITEM 1. LEGAL PROCEEDINGS](index=64&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is involved in various litigation as part of its normal business operations, with no material adverse effect anticipated - The Company is a party to various litigation in the normal course of business[235](index=235&type=chunk) - Management believes that any liability resulting from litigation will not have a material effect on the Company's financial position, results of operations, or liquidity[235](index=235&type=chunk) [ITEM 1A. RISK FACTORS](index=64&type=section&id=ITEM%201A.%20Risk%20Factors) No material changes occurred to the risk factors previously disclosed in the company's Annual Report on Form 10-K - No material changes occurred during the quarterly period ended June 30, 2025, to the risk factors previously disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2024[236](index=236&type=chunk) - Additional information regarding risk factors can be found in "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations - Forward-Looking Statements" of this Form 10-Q and in "Item 1A. Risk Factors" in the Annual Report on Form 10-K[236](index=236&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=65&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company renewed its share repurchase program, authorizing up to $50 million in common stock repurchases, with 143,720 shares repurchased in Q2 2025 - The Company renewed its share repurchase program on February 18, 2025, authorizing repurchases of up to **$50 million** of its common stock for a period of one year[238](index=238&type=chunk) Common Stock Repurchases (Q2 2025) | Month | Total Number of Shares Repurchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 48,577 | $99.42 | | May 2025 | 42,472 | $115.03 | | June 2025 | 52,671 | $112.89 | | **Total** | **143,720** | **$109.11** | - As of June 30, 2025, **308,127 shares** remained available for repurchase under the program[239](index=239&type=chunk) - The Company is subject to a new nondeductible **1% excise tax** on repurchases of corporate stock under the Inflation Reduction Act of 2022, effective after December 31, 2022[239](index=239&type=chunk) [ITEM 3. DEFAULTS UPON SENIOR SECURITIES](index=65&type=section&id=ITEM%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period - No defaults upon senior securities were reported[240](index=240&type=chunk) [ITEM 4. MINE SAFETY DISCLOSURES](index=65&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) The company reported no mine safety disclosures - No mine safety disclosures were reported[241](index=241&type=chunk) [ITEM 5. OTHER INFORMATION](index=65&type=section&id=ITEM%205.%20Other%20Information) No changes to Rule 10b5-1 or non-Rule 10b5-1 trading arrangements by directors and officers occurred during the quarter - For the quarter ended June 30, 2025, there were no trading arrangements for the sale or purchases of Company securities adopted, terminated, or modified by directors and officers that were either Rule 10b5-1 trading arrangements or non-Rule 10b5-1 trading arrangements[242](index=242&type=chunk) [ITEM 6. EXHIBITS](index=66&type=section&id=ITEM%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including various certifications and XBRL taxonomy documents - Exhibits include Rule 13a-14(a) Certifications of the Chief Executive Officer and Chief Financial Officer, and Section 1350 Certifications of the Chief Executive Officer and Chief Financial Officer[245](index=245&type=chunk) - Various Inline XBRL Taxonomy Extension documents (Schema, Calculation, Definition, Label, Presentation Linkbase Documents) and the Cover Page Interactive Data File are also filed[245](index=245&type=chunk) [SIGNATURES](index=67&type=section&id=Signatures) This section contains the official signatures for the report, confirming its submission by authorized financial officers - The report was signed on August 11, 2025, by Kevin M. LeMahieu, Chief Financial Officer (Principal Financial and Accounting Officer) of Bank First Corporation[250](index=250&type=chunk) ```

Group 1 - Bank First Corporation (NASDAQ: BFC) is planning to acquire Centre 1 Bancorp, which will nearly double its operational territory into southern Wisconsin and northern regions [1] - The acquisition reflects a significant strategic move for Bank First Corporation, which is typically known for its cautious approach [1] - The research focuses on small- to mid-cap companies, highlighting that these often receive less attention from investors, while also occasionally addressing large-cap companies for a broader market perspective [1]

Company Performance - Bank First Corporation (BFC) reported quarterly earnings of $1.71 per share, missing the Zacks Consensus Estimate of $1.80 per share, but showing an increase from $1.56 per share a year ago, resulting in an earnings surprise of -5.00% [1] - The company posted revenues of $41.62 million for the quarter ended June 2025, which was 4.32% below the Zacks Consensus Estimate, compared to $38.88 million in revenues from the previous year [2] - Over the last four quarters, Bank First Corporation has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times as well [2] Stock Performance - Bank First Corporation shares have increased approximately 26.9% since the beginning of the year, significantly outperforming the S&P 500's gain of 7.1% [3] - The current consensus EPS estimate for the upcoming quarter is $1.86 on revenues of $44.6 million, and for the current fiscal year, it is $7.25 on revenues of $175.1 million [7] Industry Outlook - The Zacks Industry Rank for Banks - Northeast, to which Bank First Corporation belongs, is currently in the top 32% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact the stock's performance [5]