Interest Rate Risk Management - The Company actively manages interest rate risk through various tools, including interest rate sensitivity analysis and net interest margin reports [321]. - The Company’s asset-liability structure is configured to maximize yield-cost spread while minimizing adverse impacts from interest rate changes [317]. - The Company’s interest rate risk management aims to achieve sustainable growth in net interest income [320]. - The Company’s financial condition is sensitive to changes in interest rates, with various economic scenarios modeled to assess risk [322]. - The Company reported a projected net interest income decrease of 4.5% with a 300 basis point increase in interest rates [326]. - An instantaneous 200 basis point increase in interest rates is estimated to increase the economic value of equity by 3.00% [326]. - The Company’s profitability is significantly impacted by changes in interest rates, with a potential decrease of 1.5% in net interest income for a 100 basis point increase [326]. Financial Performance - The company reported a net income of $65.6 million for 2024, down from $74.5 million in 2023, which is a decrease of approximately 11.7% [347]. - Earnings per share (EPS) for 2024 was $6.50, compared to $7.28 in 2023, reflecting a decline of about 10.7% [347]. - Net interest income for 2024 was $137.8 million, compared to $133.5 million in 2023, indicating a year-over-year increase of about 3.0% [346]. - Noninterest income for 2024 was $19.7 million, significantly lower than $58.1 million in 2023, indicating a decrease of about 66.1% [346]. - The total income for the year ended December 31, 2024, was $67,746,000, a decrease from $78,844,000 in 2023, representing a decline of about 13.9% [508]. Asset and Liability Management - Total assets increased to $4.495 billion as of December 31, 2024, up from $4.222 billion in 2023, representing a growth of approximately 6.5% [344]. - Total deposits increased to $3.661 billion in 2024, up from $3.433 billion in 2023, marking an increase of approximately 6.6% [344]. - The total stockholders' equity increased to $639.7 million in 2024 from $619.8 million in 2023, representing a growth of approximately 3.2% [344]. - The total liabilities of the parent company decreased from $17,802,000 in 2023 to $15,709,000 in 2024, showing a reduction of approximately 11.7% [505]. Credit Losses and Allowances - The company’s allowance for credit losses on loans (ACL-Loans) was $44.1 million as of December 31, 2024, reflecting a slight increase from $43.6 million in 2023 [339]. - The provision for credit losses was a reversal of $800,000 in 2024, compared to a provision of $4.7 million in 2023, showing a significant change in credit loss expectations [346]. - The allowance for credit losses (ACL) for loans is estimated based on the amortized cost basis of the underlying loan, with significant factors including changes in the loan portfolio and expected future economic conditions [385]. - The provision for credit losses for loans was $100 thousand in 2024, a significant decrease from $4,292 thousand in 2023, indicating improved credit quality [436]. - The company has established an ACL for unfunded commitments of $2.9 million in 2024, down from $3.8 million in 2023, indicating a reduction in potential credit exposure [434]. Mergers and Acquisitions - The merger with Hometown Bancorp, Ltd. was completed on February 10, 2023, with a total merger consideration of approximately $130,452,000, including 1,450,272 shares of common stock valued at about $115,079,000 and cash of $15,373,000 [420]. - The fair value of total assets acquired in the merger on February 10, 2023, was $615,105,000, with an excess of assets over liabilities of $65,541,000 [421]. - Goodwill resulting from the merger amounted to $64,881,000, primarily due to synergies and cost savings from combining operations [422]. Securities and Investments - As of December 31, 2024, total available for sale securities were valued at $223,061,000, with unrealized losses of $12,855,000 [423]. - The estimated fair value of held to maturity securities was $109,424,000 as of December 31, 2024 [426]. - The company does not believe any of the debt securities in an unrealized loss position are credit impaired as of December 31, 2024 [424]. - The total carrying amount of cash and cash equivalents increased from $247,468,000 in 2023 to $261,332,000 in 2024, reflecting a growth of approximately 5% [502]. Regulatory and Compliance - The Company is subject to regulatory scrutiny and potential changes in legislation that may impact its operations and financial performance [330]. - The Company met all capital adequacy requirements as of December 31, 2024, including a conservation buffer of 2.50% [482]. Employee and Stockholder Information - Cash dividends increased to $1.55 per share in 2024, up from $1.15 per share in 2023, totaling $15,562,000 in dividends paid [357]. - The Company could declare dividends totaling approximately $101.1 million without prior approval as of December 31, 2024 [480]. - The Company’s employee stock ownership plan held 221,214 shares as of December 31, 2024, down from 272,132 shares in 2023 [475].

Core Viewpoint - Bank First Corporation (BFC) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for Bank First Corporation suggest an improvement in its underlying business, likely leading to increased stock prices [5][8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7][9]. - Bank First Corporation's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10]. Earnings Estimate Revisions - For the fiscal year ending December 2025, Bank First Corporation is expected to earn $6.90 per share, reflecting a 7% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Bank First Corporation has increased by 3%, indicating a positive trend in earnings estimates [8].

Core Viewpoint - Bank First Corporation (BFC) reported quarterly earnings of $1.74 per share, exceeding the Zacks Consensus Estimate of $1.55 per share, and showing an increase from $1.44 per share a year ago, representing an earnings surprise of 12.26% [1][2] Financial Performance - The company posted revenues of $40.07 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.19%, but down from $75.37 million year-over-year [2] - Over the last four quarters, Bank First Corporation has exceeded consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Performance and Outlook - Bank First Corporation shares have decreased by approximately 0.2% since the beginning of the year, while the S&P 500 has gained 2% [3] - The company's current consensus EPS estimate for the upcoming quarter is $1.58 on revenues of $40.8 million, and for the current fiscal year, it is $6.70 on revenues of $170.4 million [7] Industry Context - The Banks - Northeast industry, to which Bank First Corporation belongs, is currently ranked in the top 25% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Core Viewpoint - Bank First Corporation reported a decline in net income for the fourth quarter and full year of 2024 compared to the previous year, but adjusted net income showed improvement, indicating a mixed financial performance [1][2]. Financial Performance - Net income for Q4 2024 was $17.5 million, or $1.75 per share, down from $34.9 million, or $3.39 per share in Q4 2023 [1]. - For the full year 2024, net income totaled $65.6 million, or $6.50 per share, compared to $74.5 million, or $7.28 per share in 2023 [1]. - Adjusted net income (non-GAAP) for Q4 2024 was $17.4 million, or $1.74 per share, up from $14.8 million, or $1.44 per share in Q4 2023 [2]. - Full year adjusted net income (non-GAAP) was $65.0 million, or $6.45 per share, compared to $59.2 million, or $5.82 per share in 2023 [2]. Operational Metrics - Return on assets for the year was 1.56%, maintaining above 1.50% for the second consecutive year [3]. - Net interest income (NII) for Q4 2024 was $35.6 million, slightly lower than the previous quarter but higher than Q4 2023 by $2.6 million [4]. - Net interest margin (NIM) was 3.61% for Q4 2024, down from 3.76% in the previous quarter and up from 3.53% in Q4 2023 [8]. Asset Quality - Nonperforming assets totaled $9.2 million as of December 31, 2024, down from $11.9 million in the previous quarter and $9.1 million a year earlier [15]. - The ratio of nonperforming assets to total assets was 0.21% at the end of Q4 2024, down from 0.28% in the prior quarter [15]. Balance Sheet Highlights - Total assets increased to $4.50 billion, a rise of $273.2 million, or 6.5%, from December 31, 2023 [12]. - Total loans reached $3.52 billion, up $174.2 million, or 5.2%, from the previous year [14]. - Total deposits were $3.66 billion, an increase of $228.2 million, or 6.7%, from December 31, 2023 [14]. Capital Position - Stockholders' equity was $639.7 million as of December 31, 2024, an increase of $19.9 million from the end of 2023 [16]. - Book value per common share was $63.89, compared to $59.80 at the end of 2023 [16]. Dividend Declaration - A quarterly cash dividend of $0.45 per share was declared, matching the previous quarter and representing a 28.6% increase from the prior year [17].

Financial Performance - Bank First reported net income of $17.5 million, or $1.75 per share, for Q4 2024, a decrease from $34.9 million, or $3.39 per share, in Q4 2023[1][2] - Adjusted net income (non-GAAP) for Q4 2024 was $17.4 million, or $1.74 per share, compared to $14.8 million, or $1.44 per share, in Q4 2023[3] - Net income for Q4 2024 was $17,540,000, up from $34,898,000 for the full year 2023, showing a decrease in quarterly performance but an overall increase in annual performance[22] - Earnings per common share (basic and diluted) for Q4 2024 was $1.75, compared to $3.39 for the full year 2023, indicating a decline in quarterly earnings per share[22] - Adjusted net income (non-GAAP) reached $17,393 million, compared to $16,552 million in the prior period, reflecting a growth of 5.1%[24] Asset and Liability Growth - Total assets increased by $273.2 million, or 6.5%, to $4.50 billion as of December 31, 2024, compared to the previous year[11] - Total liabilities increased to $3,726,332 million from $3,534,615 million, showing a growth of 5.4% year-over-year[26] - Total assets grew to $4,495,060 million, compared to $4,294,498 million, marking an increase of 4.7%[23] - Total liabilities increased to $3,588,452 thousand in 2024, compared to $3,491,758 thousand in 2023, indicating a growth of approximately 2.8%[29] Loan and Deposit Growth - Total loans grew by $174.2 million, or 5.2%, to $3.52 billion year-over-year, with a 5.3% annualized growth rate in Q4 2024[13] - Total deposits rose by $228.2 million, or 6.7%, to $3.66 billion, with a 20.2% annualized growth rate in Q4 2024[13] - Loans increased to $3,517,168 million from $3,470,920 million, representing a growth of 1.3%[23] - Average loans for the period were $3,482,974 million, compared to $3,450,423 million, indicating an increase of 0.9%[23] Income and Expense Analysis - Net interest income for Q4 2024 was $35.6 million, an increase of $2.6 million from Q4 2023[6] - Noninterest income for Q4 2024 was $4.5 million, a decrease from $42.5 million in Q4 2023, which included a $38.9 million gain on the sale of UFS[9] - Total noninterest expense for the year ended December 31, 2024, was $78,767,000, down from $88,119,000 in 2023, reflecting a reduction of 10.6%[22] - Total noninterest expense for the period was $28,862 million, an increase from $20,324 million in the previous period, reflecting a growth of approximately 42.3%[23] Equity and Book Value - Stockholders' equity increased by $19.9 million to $639.7 million as of December 31, 2024, with a book value per share of $63.89[15] - Stockholders' equity rose to $619,784 thousand in 2024, up from $569,600 thousand in 2023, representing an increase of approximately 8.8%[29] - Book value per common share improved to $63.89 from $62.82, an increase of 1.7%[23] - Tangible book value per common share (non-GAAP) rose to $44.28 from $43.07, reflecting a growth of 2.8%[23] Interest Income and Margin - Interest income for Q4 2024 was $53,754,000, an increase from $48,663,000 in Q4 2023, representing a growth of 10.4% year-over-year[22] - Net interest income after provision for credit losses for Q4 2024 was $36,561,000, compared to $32,416,000 in Q4 2023, reflecting a year-over-year increase of 12.5%[22] - The net interest margin (NIM) was 3.61% for Q4 2024, down from 3.76% in the previous quarter and up from 3.53% in Q4 2023[7] - The net interest margin for the year ended December 31, 2024, was 3.65%, slightly down from 3.69% in 2023[29] Credit Quality - Provision for credit losses for the year ended December 31, 2024, was $(800,000), a significant improvement from $4,682,000 in 2023, indicating better credit quality[22] - Nonperforming loans to total loans ratio improved to 0.24%, compared to 0.32% in the prior period[24] - The allowance for credit losses to total loans was 1.26%, consistent with the previous period[24] - The allowance for loan losses was $44,511 thousand as of December 31, 2024, compared to $41,714 thousand in 2023, indicating a slight increase in provisions for potential loan losses[28] Future Outlook - The company plans to continue focusing on market expansion and new product development to drive future growth[21]

Core Viewpoint - Bank First Corporation (BFC) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][4][6]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for Bank First Corporation is projected at $6.35 per share for the fiscal year ending December 2024, reflecting a year-over-year increase of 9.1% [9]. - Over the past three months, the Zacks Consensus Estimate for the company has risen by 4.1%, indicating a trend of increasing earnings estimates [9]. Zacks Rating System - The Zacks rating system is based on changes in a company's earnings picture, which is a critical factor for stock price movements [2][3]. - The system classifies stocks into five groups, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - The upgrade of Bank First Corporation to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for higher stock prices in the near term [12]. Market Implications - Rising earnings estimates and the corresponding rating upgrade imply an improvement in Bank First Corporation's underlying business, which could lead to increased investor interest and stock price appreciation [6][11]. - The influence of institutional investors, who adjust their valuations based on earnings estimates, further contributes to stock price movements [5].

Merger and Acquisition - Bank First Corporation completed its merger with Hometown on February 10, 2023, expanding its presence with six new branches in Fond du Lac, Columbia, Dane, and Waushara County[104] - The merger was accounted for under the acquisition method, with assets and liabilities recorded at their fair values at the date of acquisition[105] - The financial position and results of operations of Hometown prior to the merger are not included in the consolidated financial statements[105] - The integration of Hometown's system was completed successfully, enhancing the Bank's operational capabilities[104] Financial Performance - Interest income for Q3 2024 was $54,032, an increase from $49,347 in Q2 2024, representing a growth of 3.4%[107] - Net interest income after provision for credit losses was $35,883 for Q3 2024, compared to $33,007 in Q2 2024, reflecting a 8.6% increase[107] - Noninterest income decreased to $4,893 in Q3 2024 from $5,877 in Q2 2024, a decline of 16.7%[107] - Total noninterest expense increased to $20,100 in Q3 2024 from $19,057 in Q2 2024, marking a rise of 5.5%[107] - Net income for Q3 2024 was $16,552, up from $16,059 in Q2 2024, indicating a growth of 3.1%[107] - Earnings per common share (diluted) for Q3 2024 was $1.65, compared to $1.59 in Q2 2024, an increase of 3.8%[107] Assets and Liabilities - Cash and cash equivalents at the end of Q3 2024 were $204,427, significantly higher than $98,950 at the end of Q2 2024, showing a growth of 106.5%[107] - Total assets increased to $4,294,498 in Q3 2024 from $4,145,820 in Q2 2024, reflecting a growth of 3.6%[107] - Deposits rose to $3,484,741 in Q3 2024, up from $3,399,941 in Q2 2024, representing an increase of 2.5%[107] - Stockholders' equity increased to $628,895 in Q3 2024 from $614,579 in Q2 2024, a growth of 2.1%[107] Year-over-Year Comparisons - Net income increased by $1.8 million to $16.6 million for the three months ended September 30, 2024, compared to $14.8 million for the same period in 2023[116] - Total interest income increased by $7.0 million, or 15.0%, to $54.0 million for the three months ended September 30, 2024, compared to $47.0 million for the same period in 2023[119] - Average interest-earning assets increased to $3.83 billion for the three months ended September 30, 2024, up from $3.67 billion for the same period in 2023[118] - Net interest income increased by $1.8 million to $35.9 million for the three months ended September 30, 2024, compared to $34.1 million for the same period in 2023[118] Credit Losses and Provisions - The allowance for credit losses (ACL) was $45.2 million, or 1.30% of total loans, at September 30, 2024, compared to $43.4 million, or 1.29% of total loans at September 30, 2023[124] - The provision for credit losses was $0.2 million for the nine months ended September 30, 2024, compared to $4.2 million for the same period in 2023[136] - The balance of the Allowance for Credit Losses (ACL) on loans at the end of the period was $45.2 million, up from $43.6 million at the end of December 2023, indicating a 3.7% increase[186] Loan Portfolio - Net loans increased by $126.3 million, totaling $3.43 billion at September 30, 2024, compared to $3.30 billion at December 31, 2023[150] - Loans increased by $127.9 million, or 3.8%, to $3.47 billion as of September 30, 2024, compared to $3.34 billion as of December 31, 2023[157] - The commercial and industrial loan portfolio totaled $517.8 million at September 30, 2024, representing 15% of total loans[160] - The commercial real estate loan portfolio totaled $1.73 billion at September 30, 2024, representing 50% of total loans[162] Interest Rate Management - The company actively manages interest rate risk to minimize adverse impacts on net interest income and capital[238] - Interest rate sensitivity analysis is utilized to assess the impact of interest rate changes on net interest income[244] - The company’s asset-liability structure is configured to maximize yield-cost spread while controlling interest rate risk[240] - As of September 30, 2024, a 400 basis point increase in interest rates is projected to result in a 5.2% decrease in net interest income[248] Regulatory and Capital Position - The Company is regulated by the Office of the Comptroller of the Currency and is a member of the Federal Reserve System[101] - The company is well-capitalized, exceeding the required minimum capital ratios, including a CET1 ratio of at least 6.5%[227] - As of September 30, 2024, Bank First Corporation reported total capital to risk-weighted assets at $495.493 million, representing a ratio of 13.9%[231] - The Tier I capital to risk-weighted assets was $442.697 million, with a ratio of 12.4% as of September 30, 2024[231] Nonperforming Loans and Assets - Total nonperforming loans reached $11.169 million as of September 30, 2024, up from $6.555 million at the end of 2023[179] - Nonaccrual loans increased to $9.693 million as of September 30, 2024, compared to $5.662 million at the end of 2023[179] - The ratio of nonaccrual loans to total loans increased to 0.28% from 0.17% in the previous quarter[179] Operational Efficiency - The company aims to minimize reliance on certificates of deposits by increasing relationship deposits in lower-earning savings and demand deposit accounts[191] - Data processing expenses rose by $894,000, or 15%, due to project-related costs for upgrading the online customer platform and the acquisition of Hometown[141] - The company continuously monitors liquidity to meet short-term and long-term cash requirements[217]

Group 1: Earnings Performance - Bank First Corporation (BFC) reported quarterly earnings of $1.65 per share, exceeding the Zacks Consensus Estimate of $1.52 per share, and up from $1.46 per share a year ago, representing an earnings surprise of 8.55% [1] - The company posted revenues of $40.78 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 2.97%, compared to year-ago revenues of $39.31 million [2] - Over the last four quarters, Bank First Corporation has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Group 2: Stock Performance and Outlook - Bank First Corporation shares have increased approximately 3.3% since the beginning of the year, while the S&P 500 has gained 22.9% [3] - The company's earnings outlook will be crucial for future stock movements, with current consensus EPS estimates at $1.43 for the coming quarter and $6.07 for the current fiscal year [4][7] - The estimate revisions trend for Bank First Corporation is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Group 3: Industry Context - The Banks - Northeast industry, to which Bank First Corporation belongs, is currently in the top 41% of over 250 Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8] - Another company in the same industry, Premier Financial, is expected to report a quarterly earnings decline of 26.1% year-over-year, with revenues projected to decrease by 4.4% from the previous year [9]

Core Insights - Bank First Corporation reported a net income of $16.6 million for Q3 2024, an increase from $14.8 million in Q3 2023, with earnings per share rising to $1.65 from $1.43 [1] - For the first nine months of 2024, net income reached $48.0 million, compared to $39.6 million in the same period of 2023 [1] - The company declared a quarterly cash dividend of $0.45 per share, marking a 12.5% increase from the previous quarter and a 50.0% increase from the same quarter last year [12] Operating Results - Net interest income (NII) for Q3 2024 was $35.9 million, up $2.9 million from the previous quarter and $1.8 million from Q3 2023 [2] - The net interest margin (NIM) improved to 3.76% in Q3 2024, compared to 3.63% in the previous quarter and 3.71% in Q3 2023 [3] - The yield on the loan portfolio increased to 5.73% in Q3 2024, up from 5.51% in the previous quarter and 5.23% in the same quarter last year [3] Credit Quality - No provision for credit losses was recorded in Q3 2024, consistent with the previous quarter and Q3 2023 [4] - Recoveries of previously charged-off loans exceeded current charge-offs by $0.5 million in the first nine months of 2024 [4] - Nonperforming assets totaled $11.9 million as of September 30, 2024, representing 0.28% of total assets [10] Balance Sheet - Total assets increased to $4.29 billion as of September 30, 2024, up $72.7 million from December 31, 2023 [8] - Total loans reached $3.47 billion, an increase of $127.9 million from December 31, 2023 [8] - Total deposits were $3.48 billion, up $51.8 million from December 31, 2023, with noninterest-bearing deposits growing by 18.8% on an annualized basis during Q3 2024 [9] Capital Position - Stockholders' equity rose to $628.9 million as of September 30, 2024, an increase of $9.1 million from the end of 2023 [11] - The book value per common share increased to $62.82, compared to $59.80 at the end of 2023 [11] - Tangible book value per common share was $43.07, up from $40.30 at the end of 2023 [11]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission file number: 001-38676 WISCONSIN 39-1435359 (State or other jurisdiction of incorporation or organiza ...