Core Insights - Bank First Corporation reported a net income of $16.9 million, or $1.71 per share, for Q2 2025, an increase from $16.1 million, or $1.59 per share, in Q2 2024 [1] - For the first half of 2025, net income was $35.1 million, or $3.53 per share, compared to $31.5 million, or $3.10 per share, in the same period of 2024 [1] Operating Results - Net interest income (NII) for Q2 2025 was $36.7 million, up $0.2 million from the previous quarter and $3.7 million from Q2 2024 [3] - Net interest margin (NIM) improved to 3.72% in Q2 2025, compared to 3.65% in Q1 2025 and 3.63% in Q2 2024 [4] - The increase in NIM was supported by higher yields on new and renewed loans while deposit rates decreased [4] Credit Losses - The provision for credit losses was $0.2 million in Q2 2025, down from $0.4 million in Q1 2025, and no provision was recorded in Q2 2024 [5] Noninterest Income and Expenses - Noninterest income for Q2 2025 was $4.9 million, down from $6.6 million in Q1 2025 and $5.9 million in Q2 2024 [6] - Noninterest expense totaled $20.8 million in Q2 2025, slightly up from $20.6 million in Q1 2025 and $19.1 million in Q2 2024 [7] Balance Sheet - Total assets were $4.37 billion as of June 30, 2025, a decrease of $130 million from December 31, 2024, but an increase of $219.3 million from June 30, 2024 [9] - Total loans reached $3.58 billion, up $63.2 million from December 31, 2024, and up $151.7 million from June 30, 2024 [9] Deposits - Total deposits were $3.60 billion as of June 30, 2025, down $65.6 million from December 31, 2024, but up $195.5 million from June 30, 2024 [10] Asset Quality - Nonperforming assets were $13.6 million at June 30, 2025, with a nonperforming assets to total assets ratio of 0.31% [11] Capital Position - Stockholders' equity was $612.3 million at June 30, 2025, a decrease of $27.4 million from the end of 2024 [12] - The book value per common share was $62.27 at June 30, 2025, compared to $63.89 at December 31, 2024 [12] Dividend Declaration - A quarterly cash dividend of $0.45 per common share was approved, payable on October 8, 2025 [13]

[Part I. Financial Information](index=3&type=section&id=Part%20I.%20Financial%20Information) [Financial Statements](index=3&type=section&id=ITEM%201.%20Financial%20Statements) The unaudited consolidated financial statements for Q1 2025 show stable financial position, increased net income, and strong capital levels [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets reached $4.51 billion as of March 31, 2025, driven by growth in net loans and stockholders' equity Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Cash and cash equivalents | $300,865 | $261,332 | | Loans, net | $3,504,321 | $3,473,017 | | **Total Assets** | **$4,505,065** | **$4,495,060** | | Total deposits | $3,674,218 | $3,661,073 | | **Total Liabilities** | **$3,856,651** | **$3,855,377** | | **Total Stockholders' Equity** | **$648,414** | **$639,683** | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) Net income for Q1 2025 increased 18.4% to $18.2 million, driven by higher net interest income and diluted EPS growth Q1 2025 vs Q1 2024 Income Statement (in thousands, except per share data) | Metric | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Net interest income | $36,537 | $33,349 | | Provision for credit losses | $400 | $200 | | Total noninterest income | $6,588 | $4,397 | | Total noninterest expense | $20,604 | $20,324 | | **Net Income** | **$18,241** | **$15,412** | | **Earnings per share - diluted** | **$1.82** | **$1.51** | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash increased by $39.5 million in Q1 2025, primarily from investing activities and operating cash flow Cash Flow Summary for Three Months Ended March 31 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $6,166 | $1,329 | | Net cash provided by (used in) investing activities | $31,543 | $(42,929) | | Net cash provided by (used in) financing activities | $1,824 | $(122,494) | | **Net increase (decrease) in cash** | **$39,533** | **$(164,094)** | [Notes to Unaudited Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) Notes detail accounting policies, financial instruments, and regulatory standing, including a $3.50 per share special dividend - On April 25, 2025, the Board of Directors declared a special cash dividend of **$3.50 per share**, totaling approximately **$35.0 million**, payable on May 16, 2025[81](index=81&type=chunk) - The Allowance for Credit Losses on Loans (ACL-Loans) was **$43.7 million** as of March 31, 2025, down from **$44.2 million** at year-end 2024. The company recorded a **$400 thousand** provision for credit losses in Q1 2025[44](index=44&type=chunk) - As of March 31, 2025, the company and its bank subsidiary met all capital adequacy requirements, with the bank's Total capital to risk-weighted assets ratio at **12.14%**, well above the **10.00%** required to be considered well-capitalized[64](index=64&type=chunk)[65](index=65&type=chunk) - In Q1 2025, the company repurchased **62,564 shares** at an average price of **$100.22 per share** under its renewed **$50 million** share repurchase program[220](index=220&type=chunk)[221](index=221&type=chunk) [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong Q1 2025 performance to increased net interest income, loan growth, improved credit quality, and robust capital [Results of Operations](index=31&type=section&id=Results%20of%20Operations) Net income increased by $2.8 million in Q1 2025, driven by higher net interest income and noninterest income gains - Net income increased by **$2.8 million** YoY, primarily due to repricing of new and renewed loans in a higher rate environment and steady growth in interest-bearing assets[98](index=98&type=chunk) - Noninterest income was significantly boosted by a **$2.3 million** death benefit from bank-owned life insurance, resulting in a **$1.0 million** gain[107](index=107&type=chunk) - The effective tax rate was **17.5%** in Q1 2025, compared to **10.5%** in Q1 2024. The lower rate in 2024 was due to a one-time **$1.3 million** tax liability reduction based on new state tax legislation rules[110](index=110&type=chunk) [Changes in Financial Condition](index=35&type=section&id=Changes%20in%20Financial%20Condition) Total assets increased to $4.51 billion in Q1 2025, driven by net loan growth despite a decrease in investment securities Key Balance Sheet Changes (Q1 2025 vs Q4 2024) | Account | Change ($M) | % Change | | :--- | :--- | :--- | | Total Assets | +$11.4 | +0.3% | | Net Loans | +$31.3 | +0.9% | | Investment Securities | -$59.8 | -17.9% | | Deposits | +$13.1 | +0.4% | | Stockholders' Equity | +$8.7 | +1.4% | [Loans and Credit Quality](index=36&type=section&id=Loans%20and%20Credit%20Quality) Loan portfolio grew to $3.55 billion with improved asset quality, as nonperforming assets declined to 0.17% of total assets Loan Portfolio Composition (in thousands) | Loan Category | March 31, 2025 | % of Total | | :--- | :--- | :--- | | Commercial & industrial | $507,850 | 14% | | Commercial real estate | $1,788,658 | 50% | | Construction & development | $278,475 | 8% | | Residential 1-4 family | $903,280 | 26% | | Consumer & other | $69,807 | 2% | | **Total Loans** | **$3,548,070** | **100%** | Nonperforming Assets (NPAs) Trend (in thousands) | Metric | Mar 31, 2025 | Dec 31, 2024 | Mar 31, 2024 | | :--- | :--- | :--- | :--- | | Total nonperforming loans | $6,814 | $8,496 | $9,877 | | Total OREO | $741 | $741 | $2,674 | | **Total NPAs** | **$7,555** | **$9,237** | **$12,551** | | **NPAs to total assets** | **0.17%** | **0.21%** | **0.31%** | [Liquidity and Capital Resources](index=47&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $1.54 billion in available funding and robust capital ratios exceeding 'well-capitalized' standards - The company has access to **$1.54 billion** in available funding between borrowings and brokered deposits to meet future liquidity needs[179](index=179&type=chunk) Bank First, N.A. Capital Ratios (as of March 31, 2025) | Ratio | Actual | Minimum to be Well-Capitalized | | :--- | :--- | :--- | | Common equity Tier 1 capital ratio | 11.0% | 6.5% | | Tier 1 capital ratio | 11.0% | 8.0% | | Total capital ratio | 12.1% | 10.0% | | Tier 1 leverage ratio | 9.3% | 5.0% | [ITEM 3. Quantitative and Qualitative Disclosures about Market Risk](index=52&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate risk, with simulations showing short-term liability sensitivity and long-term asset sensitivity Net Interest Income Sensitivity (as of March 31, 2025) | Change in Interest Rates (Basis Points) | Percentage Change in Net Interest Income | | :--- | :--- | | +300 | (4.9)% | | +200 | (3.3)% | | +100 | (1.6)% | | -100 | (0.8)% | - The economic value of equity analysis estimated that an instantaneous **200 basis point** increase in interest rates would result in a **3.14%** increase in the economic value of equity[212](index=212&type=chunk) [ITEM 4. Controls and Procedures](index=54&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were deemed effective, with no material changes to internal control over financial reporting in Q1 2025 - Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of the end of the reporting period[214](index=214&type=chunk) - No material changes were made to internal control over financial reporting during the quarter ended March 31, 2025[215](index=215&type=chunk) [Part II. Other Information](index=54&type=section&id=Part%20II.%20Other%20Information) [ITEM 1. Legal Proceedings](index=54&type=section&id=ITEM%201.%20Legal%20Proceedings) Management believes ongoing litigation will not materially affect the company's financial position, results of operations, or liquidity - Management believes that any liability resulting from ongoing litigation will not have a material effect on the company's financial condition or operations[217](index=217&type=chunk) [ITEM 1A. Risk Factors](index=54&type=section&id=ITEM%201A.%20Risk%20Factors) No material changes to previously disclosed risk factors were reported for the quarter ended March 31, 2025 - No material changes to the risk factors disclosed in the company's 2024 Annual Report on Form 10-K were reported for the first quarter of 2025[218](index=218&type=chunk) [Issuer Purchases of Equity Securities](index=55&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company renewed its $50 million share repurchase program and repurchased 62,564 shares in Q1 2025 Share Repurchases in Q1 2025 | Month (2025) | Total Shares Repurchased | Average Price Paid per Share | | :--- | :--- | :--- | | January | 7,001 | $94.47 | | February | 11,083 | $103.37 | | March | 44,480 | $102.82 | | **Total** | **62,564** | **$100.22** | - The company renewed its share repurchase program on February 18, 2025, for up to **$50 million** of its common stock, ending February 17, 2026[220](index=220&type=chunk) [Other Items and Exhibits](index=55&type=section&id=ITEM%203%2C%204%2C%205%2C%206) The company reported no defaults on senior securities, no mine safety disclosures, and no new Rule 10b5-1 trading plans in Q1 2025 - The company reported no defaults on senior securities, no mine safety disclosures, and no new or modified Rule 10b5-1 trading plans for its directors and officers in Q1 2025[222](index=222&type=chunk)[223](index=223&type=chunk)[224](index=224&type=chunk)

Group 1: InterDigital, Inc. (IDCC) - InterDigital is a global research and development company with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings increased by 14.7% over the last 60 days [1] - InterDigital's shares gained 10.6% over the last three months, while the S&P 500 declined by 12.7% [1] - The company has a Momentum Score of B [1] Group 2: Bank First Corporation (BFC) - Bank First Corporation is a holding company for Bank with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings increased by 6.5% over the last 60 days [2] - Bank First Corporation's shares gained 6.7% over the last three months, compared to the S&P 500's decline of 12.7% [2] - The company possesses a Momentum Score of B [2] Group 3: Celsius Holdings, Inc. (CELH) - Celsius Holdings is a functional beverage company with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings increased by 20.7% over the last 60 days [3] - Celsius Holdings' shares gained 38.9% over the last three months, while the S&P 500 declined by 12.7% [3] - The company has a Momentum Score of A [3]

Core Viewpoint - Bank First Corporation (BFC) reported quarterly earnings of $1.82 per share, exceeding the Zacks Consensus Estimate of $1.62 per share, and showing an increase from $1.51 per share a year ago, representing an earnings surprise of 12.35% [1] Group 1: Earnings Performance - The company has surpassed consensus EPS estimates for four consecutive quarters [2] - BFC's revenues for the quarter ended March 2025 were $43.13 million, exceeding the Zacks Consensus Estimate by 3.17%, compared to $37.75 million in the same quarter last year [2] - The company has also topped consensus revenue estimates for four consecutive quarters [2] Group 2: Stock Performance and Outlook - BFC shares have increased approximately 0.8% since the beginning of the year, contrasting with the S&P 500's decline of -8.1% [3] - The future performance of the stock will depend on management's commentary during the earnings call and the company's earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is $1.74 on revenues of $43.8 million, and for the current fiscal year, it is $6.90 on revenues of $175.1 million [7] Group 3: Industry Context - The Banks - Northeast industry, to which BFC belongs, is currently ranked in the top 26% 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 BFC's stock performance [5]

[Q1 2025 Earnings Announcement](index=1&type=section&id=Bank%20First%20Announces%20Net%20Income%20for%20the%20First%20Quarter%20of%202025) Bank First reported strong Q1 2025 net income of $18.2 million, with EPS up 20.53% and a dividend increase [Financial Highlights](index=1&type=section&id=Financial%20Highlights) Bank First Corporation reported strong financial results for the first quarter of 2025, with net income reaching $18.2 million, or $1.82 per share, a 20.53% increase in EPS compared to the prior-year quarter Q1 2025 Key Financial Metrics | Metric | Q1 2025 | Change vs. Q1 2024 | | :--- | :--- | :--- | | Net Income | $18.2 million | +$2.8 million | | Earnings Per Share (EPS) | $1.82 | +20.53% | | Annualized Return on Average Assets (ROA) | 1.64% | N/A | | Quarterly Cash Dividend | $0.45 per share | +28.6% | - CEO Mike Molepske attributed the strong financial returns to an increase in **core loan and deposit growth** that began in late 2024 and continued into early 2025[2](index=2&type=chunk) [Operating Results](index=1&type=section&id=Operating%20Results) Analysis of Q1 2025 operating performance, including net interest income, credit loss provisions, and noninterest items [Net Interest Income and Margin (NII & NIM)](index=1&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income (NII) for Q1 2025 was $36.5 million, an increase of $3.2 million year-over-year and $1.0 million quarter-over-quarter Net Interest Income (NII) Comparison | Period | Net Interest Income | Impact from Purchase Accounting | | :--- | :--- | :--- | | Q1 2025 | $36.5 million | +$1.0 million | | Q4 2024 | $35.5 million | +$0.8 million | | Q1 2024 | $33.3 million | +$1.2 million | Net Interest Margin (NIM) Comparison | Period | Net Interest Margin (NIM) | Impact from Purchase Accounting | | :--- | :--- | :--- | | Q1 2025 | 3.65% | +0.10% | | Q4 2024 | 3.61% | +0.08% | | Q1 2024 | 3.62% | +0.13% | - The bank's cost of funds decreased by **0.08%** quarter-over-quarter, and the average rate paid on non-brokered certificates of deposit fell by **0.18%** compared to the prior quarter[4](index=4&type=chunk) [Provision for Credit Losses](index=2&type=section&id=Provision%20for%20Credit%20Losses) The provision for credit losses was $0.4 million in Q1 2025, up from $0.2 million in Q1 2024, with net loan charge-offs primarily from a 2023 acquisition - The provision for credit losses was **$0.4 million** for Q1 2025, compared to **$0.2 million** for Q1 2024[5](index=5&type=chunk) - Net loan charge-offs totaled **$0.8 million** in Q1 2025, a significant shift from net recoveries of **$0.6 million** in Q1 2024. The charge-off was related to a single customer from a 2023 acquisition[5](index=5&type=chunk) [Noninterest Income](index=2&type=section&id=Noninterest%20Income) Noninterest income increased significantly to $6.6 million in Q1 2025, driven by higher service charges, partnership income, and a BOLI death benefit - Total noninterest income was **$6.6 million** for Q1 2025, a substantial increase from **$4.4 million** in Q1 2024[6](index=6&type=chunk) - Key drivers of noninterest income growth include: - Service charges increased by **$0.4 million (23.1%)** YoY - Income from the **40% interest in Ansay & Associates, LLC** grew by **$0.2 million (20.6%)** YoY - A **$0.2 million positive valuation adjustment** on mortgage servicing rights, compared to a **$0.3 million negative adjustment** in the prior year - A **$1.0 million gain** from a BOLI death benefit[6](index=6&type=chunk) [Noninterest Expense](index=2&type=section&id=Noninterest%20Expense) Noninterest expense remained relatively stable at $20.6 million in Q1 2025, as efficiency improvements offset wage pressures and special projects concluded - Personnel expense was **consistent year-over-year**, as **efficiency gains** offset wage inflation[7](index=7&type=chunk) - Data processing and outside service fees **declined** from recent quarters due to the completion of special projects[7](index=7&type=chunk) - Amortization of core deposit intangible assets is **decreasing over time** due to the accelerated amortization method used[7](index=7&type=chunk) [Income Tax Expense](index=3&type=section&id=Income%20Tax%20Expense) The effective tax rate for Q1 2025 was 17.5%, favorably impacted by a tax-exempt BOLI death benefit, higher than the prior year's rate due to a one-time benefit - The effective tax rate in Q1 2025 was **17.5%**, benefiting from a **tax-exempt BOLI death benefit**[8](index=8&type=chunk) - The Q1 2024 effective tax rate was an unusually low **10.5%** due to a **$1.3 million benefit** recorded from a new Wisconsin state tax exclusion, which was finalized in Q1 2024 but related to 2023[8](index=8&type=chunk) [Balance Sheet and Asset Quality](index=3&type=section&id=Balance%20Sheet%20and%20Asset%20Quality) Overview of the bank's balance sheet growth and significant improvements in asset quality during Q1 2025 [Balance Sheet](index=3&type=section&id=Balance%20Sheet) As of March 31, 2025, total assets grew to $4.51 billion, with increases in loans and deposits, alongside a shift in deposit mix Balance Sheet Highlights (as of March 31, 2025) | Metric | Balance | Change vs. Dec 31, 2024 | Change vs. Mar 31, 2024 | | :--- | :--- | :--- | :--- | | Total Assets | $4.51 billion | +$11.4 million | +$406.6 million | | Total Loans | $3.55 billion | +$30.9 million | +$164.7 million | | Total Deposits | $3.67 billion | +$13.1 million | +$258.2 million | - Noninterest-bearing demand deposits constituted **27.4% of total deposits**, down from **29.0%** a year ago, indicating a shift in the deposit portfolio towards pre-2020 levels[10](index=10&type=chunk) [Asset Quality](index=3&type=section&id=Asset%20Quality) Asset quality showed significant improvement in Q1 2025, with nonperforming assets decreasing to $7.6 million, reducing the ratio to total assets Nonperforming Assets Trend | Period | Nonperforming Assets | Nonperforming Assets to Total Assets | | :--- | :--- | :--- | | Q1 2025 | $7.6 million | 0.17% | | Q4 2024 | $9.2 million | 0.21% | | Q1 2024 | $12.5 million | 0.31% | - A significant portion of the quarterly decline in nonperforming assets was related to the **charge-off of a $0.8 million loan**[11](index=11&type=chunk) [Capital Position and Dividend](index=4&type=section&id=Capital%20Position%20and%20Dividend) Details on the bank's robust capital growth and the declaration of its quarterly cash dividend [Capital Position](index=4&type=section&id=Capital%20Position) Stockholders' equity grew to $648.4 million at the end of Q1 2025, driven by earnings that offset dividends and share repurchases, leading to healthy increases in book value per share - During Q1 2025, earnings of **$18.2 million** offset **$4.5 million in dividends** and **$6.4 million in common stock repurchases**, leading to an **$8.7 million increase** in stockholders' equity from the prior quarter[12](index=12&type=chunk) Book Value Per Share Growth | Metric | Mar 31, 2025 | Dec 31, 2024 | Mar 31, 2024 | | :--- | :--- | :--- | :--- | | Book Value per Share | $65.02 | $63.89 | $60.16 | | Tangible Book Value per Share (non-GAAP) | $45.46 | $44.28 | $40.35 | [Dividend Declaration](index=4&type=section&id=Dividend%20Declaration) The Board of Directors declared a quarterly cash dividend of $0.45 per common share, payable on July 9, 2025, representing a 28.6% increase year-over-year - A quarterly cash dividend of **$0.45 per common share** was approved, payable on July 9, 2025, to shareholders of record as of June 25, 2025[13](index=13&type=chunk) [Financial Tables and Reconciliations](index=6&type=section&id=Financial%20Tables%20and%20Reconciliations) Comprehensive financial data, including unaudited summaries, non-GAAP reconciliations, and average balance analyses [Consolidated Financial Summary (Unaudited)](index=6&type=section&id=Consolidated%20Financial%20Summary%20%28Unaudited%29) This section presents detailed unaudited consolidated financial data for the five quarters ending March 31, 2025, covering income statements, balance sheets, and key ratios Selected Consolidated Financial Data (Millions) | Metric | 3/31/2025 (Millions) | 12/31/2024 (Millions) | 3/31/2024 (Millions) | | :--- | :--- | :--- | :--- | | **Operations** | | | | | Net interest income | $36.5 | $35.6 | $33.3 | | Net income | $18.2 | $17.5 | $15.4 | | **Balance Sheet** | | | | | Total assets | $4,506.5 | $4,495.1 | $4,099.9 | | Total loans | $3,548.1 | $3,517.2 | $3,383.4 | | Total deposits | $3,674.2 | $3,661.1 | $3,416.0 | | Stockholders' equity | $648.4 | $639.7 | $609.3 | [Non-GAAP Financial Measures](index=8&type=section&id=Non-GAAP%20Financial%20Measures) This section provides reconciliations of non-GAAP financial measures to their most directly comparable GAAP measures, including tangible assets and equity - The report provides reconciliations for non-GAAP measures, including **tangible assets** and **tangible common equity**, to their GAAP equivalents (**Total Assets** and **Total Stockholders' Equity**)[21](index=21&type=chunk) [Average Balances and Rates](index=9&type=section&id=Average%20Balances%20and%20Rates) This table presents a detailed analysis of average asset and liability balances for the three months ended March 31, 2025, compared to the same period in 2024 Net Interest Margin and Spread Comparison | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Avg. Rate Earned (Assets) | 5.49% | 5.33% | | Avg. Rate Paid (Liabilities) | 2.65% | 2.55% | | Net Interest Spread | 2.84% | 2.78% | | Net Interest Margin | 3.65% | 3.62% |

Group 1 - Bank First Corporation (BFC) shares increased by 3.4% to close at $101.56, with notable trading volume compared to typical sessions, following a 1.4% loss over the past four weeks [1] - The stock price surge was influenced by Trump's announcement of a 90-day pause on reciprocal tariffs for most trading partners, excluding China, which alleviated trade war fears and improved the economic outlook, boosting investor confidence in banking stocks like BFC [2] - BFC is expected to report quarterly earnings of $1.62 per share, reflecting a year-over-year increase of 7.3%, with revenues projected at $41.8 million, up 10.7% from the previous year [3] Group 2 - The consensus EPS estimate for BFC has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] - BFC currently holds a Zacks Rank of 3 (Hold), while another stock in the same industry, Independent Bank Corp. (INDB), saw a 7.3% increase to $58.62, despite a -10.5% return over the past month [4] - Independent Bank Corp.'s consensus EPS estimate has decreased by 0.3% to $1.18, representing a year-over-year change of 5.4%, and it currently has a Zacks Rank of 4 (Sell) [5]

Group 1 - Annaly Capital Management (NLY) is currently outperforming its peers in the Finance sector, with a year-to-date return of 19.8% compared to the sector average of 2% [4] - The Zacks Rank for Annaly Capital Management is 1 (Strong Buy), indicating a positive earnings outlook and strong analyst sentiment, with a 6.2% increase in the consensus estimate for full-year earnings over the past quarter [3][4] - Annaly Capital Management is part of the REIT and Equity Trust industry, which has gained an average of 8.5% this year, further highlighting its strong performance within this segment [6] Group 2 - Bank First Corporation (BFC) is another Finance stock that has outperformed the sector, with a year-to-date increase of 2.5% and a Zacks Rank of 2 (Buy) [5] - The consensus EPS estimate for Bank First Corporation has increased by 3% over the past three months, indicating a positive trend in earnings expectations [5] - The Banks - Northeast industry, to which Bank First Corporation belongs, is currently ranked 16 and has seen a decline of 4% this year, contrasting with the performance of Annaly Capital Management [6]

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]