Bank First(BFC) - 2025 Q2 - Quarterly Results

Financial Highlights Bank First reported strong Q2 2025 net income of $16.9 million ($1.71/share) and increased its quarterly cash dividend by 12.5% to $0.45 per share Q2 & YTD 2025 Earnings Summary | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $16.9 million | $16.1 million | $35.1 million | $31.5 million | | Earnings Per Share | $1.71 | $1.59 | $3.53 | $3.10 | Q2 2025 Key Performance Metrics | Metric | Q2 2025 | Change from Q2 2024 | | :--- | :--- | :--- | | Annualized Return on Average Assets | 1.54% | - | | Quarterly Cash Dividend per Share | $0.45 | +12.5% | Management Commentary Management anticipates an improving net interest margin due to the normalizing yield curve, despite the bank's interest rate neutral positioning - The CEO highlighted the positive impact of a normalizing yield curve on the banking industry and expects Bank First's net interest margin to improve as a result[2] Operating Results Operating results show stable net interest income and expanding net interest margin, with noninterest income declining and expenses rising due to strategic investments Net Interest Income (NII) and Net Interest Margin (NIM) Net interest income increased to $36.7 million in Q2 2025, with Net Interest Margin improving to 3.72% due to higher loan yields and lower deposit costs Net Interest Income (NII) Comparison | Period | NII | Change from Q2 2024 | | :--- | :--- | :--- | | Q2 2025 | $36.7 million | +$3.7 million | | Q1 2025 | $36.5 million | - | | Q2 2024 | $33.0 million | - | Net Interest Margin (NIM) Comparison | Period | NIM (%) | Purchase Accounting Impact (%) | | :--- | :--- | :--- | | Q2 2025 | 3.72% | +0.03% | | Q1 2025 | 3.65% | +0.10% | | Q2 2024 | 3.63% | +0.13% | - The NIM improvement was driven by a 10 basis point increase in rates earned on average earning assets and a 15 basis point decrease in rates paid on average interest-bearing deposits from Q2 2024 to Q2 2025[5] Provision for Credit Losses A minimal provision for credit losses of $0.2 million was recorded in Q2 2025, a decrease from the prior quarter and an increase from Q2 2024 Provision for Credit Losses | Period | Provision Amount (Millions) | | :--- | :--- | | Q2 2025 | $0.2 million | | Q1 2025 | $0.4 million | | Q2 2024 | $0.0 million | Noninterest Income Noninterest income decreased to $4.9 million in Q2 2025, primarily due to a negative valuation adjustment and the absence of prior period one-time gains Noninterest Income Comparison | Period | Noninterest Income (Millions) | | :--- | :--- | | Q2 2025 | $4.9 million | | Q1 2025 | $6.6 million | | Q2 2024 | $5.9 million | - Key drivers for the period-over-period decrease included a $0.1 million negative valuation adjustment on mortgage servicing rights and the absence of a $1.0 million gain on bank-owned life insurance that occurred in Q1 2025[7] Noninterest Expense Noninterest expense increased to $20.8 million in Q2 2025, driven by branch remodels, a new branch opening, and digital platform upgrade costs Noninterest Expense Comparison | Period | Noninterest Expense (Millions) | | :--- | :--- | | Q2 2025 | $20.8 million | | Q1 2025 | $20.6 million | | Q2 2024 | $19.1 million | - Expense increases were driven by: - Branch remodels and the opening of a new branch in Sturgeon Bay, WI - Elevated expenditures related to the upgrade of the Bank's digital banking platform[8] Financial Condition The bank maintained a strong financial position as of June 30, 2025, with healthy asset, loan, and deposit growth, strong asset quality, and robust capital Balance Sheet Analysis Total assets reached $4.37 billion at Q2 2025, with loans at $3.58 billion and deposits at $3.60 billion, all showing healthy year-over-year growth Key Balance Sheet Items (as of June 30, 2025) | Item | Amount | Change from June 30, 2024 | | :--- | :--- | :--- | | Total Assets | $4.37 billion | +$219.3 million | | Total Loans | $3.58 billion | +$151.7 million | | Total Deposits | $3.60 billion | +$195.5 million | Asset Quality Asset quality remained excellent in Q2 2025, with nonperforming assets at a negligible $13.6 million, representing 0.31% of total assets Nonperforming Assets (NPA) | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total NPAs | $13.6 million | $11.0 million | | NPAs to Total Assets | 0.31% | 0.27% | Capital Position and Dividends Stockholders' equity was $612.3 million at Q2 2025, impacted by a special dividend and share repurchases, while a $0.45 per share quarterly dividend was declared - The decline in stockholders' equity in H1 2025 was caused by dividends ($43.6M, including a special dividend) and share repurchases ($22.0M) outpacing net income ($35.1M)[12] - A quarterly cash dividend of $0.45 per share was declared, payable on October 8, 2025, to shareholders of record as of September 24, 2025[13] Book Value Per Common Share | Metric | June 30, 2025 ($) | June 30, 2024 ($) | | :--- | :--- | :--- | | Book Value | $62.27 | $61.27 | | Tangible Book Value (non-GAAP) | $42.57 | $41.42 | Consolidated Financial Statements This section presents detailed unaudited consolidated financial data, including operational summaries, balance sheet items, key ratios, and average balance sheets with interest rates Consolidated Financial Summary The consolidated financial summary provides key income statement and balance sheet figures, detailed noninterest breakdowns, loan portfolio composition, and non-GAAP reconciliations Selected Income Statement Data (Q2 2025 vs Q2 2024) | (In thousands) | Q2 2025 (Thousands) | Q2 2024 (Thousands) | | :--- | :--- | :--- | | Net Interest Income | $36,702 | $33,007 | | Noninterest Income | $4,921 | $5,877 | | Noninterest Expense | $20,756 | $19,057 | | Net Income | $16,875 | $16,059 | Selected Balance Sheet Data (June 30, 2025 vs June 30, 2024) | (In thousands) | June 30, 2025 (Thousands) | June 30, 2024 (Thousands) | | :--- | :--- | :--- | | Total Assets | $4,365,082 | $4,145,820 | | Loans | $3,580,357 | $3,428,635 | | Deposits | $3,595,424 | $3,399,941 | | Stockholders' Equity | $612,333 | $614,579 | Average Balances and Rates This section details average asset and liability balances, interest income and expense breakdowns, and calculated average rates for net interest spread and margin Net Interest Margin Analysis (For Three Months Ended) | Metric | June 30, 2025 (%) | June 30, 2024 (%) | | :--- | :--- | :--- | | Rate on Interest-Earning Assets | 5.50% | 5.40% | | Rate on Interest-Bearing Liabilities | 2.59% | 2.66% | | Net Interest Spread | 2.91% | 2.74% | | Net Interest Margin | 3.72% | 3.63% | Net Interest Margin Analysis (For Six Months Ended) | Metric | June 30, 2025 (%) | June 30, 2024 (%) | | :--- | :--- | :--- | | Rate on Interest-Earning Assets | 5.50% | 5.37% | | Rate on Interest-Bearing Liabilities | 2.62% | 2.61% | | Net Interest Spread | 2.87% | 2.76% | | Net Interest Margin | 3.69% | 3.62% | Other Information This section provides Bank First's corporate profile and includes legal disclaimers regarding forward-looking statements and non-GAAP financial measures About Bank First Corporation Bank First Corporation, with approximately $4.4 billion in assets, operates 27 banking locations in Wisconsin, offering diverse financial services - Bank First has approximately $4.4 billion in assets, 27 banking locations in Wisconsin, and 368 full-time equivalent staff[14] Forward-Looking Statements & Non-GAAP Measures The report includes forward-looking statements subject to risks and uncertainties, and utilizes non-GAAP financial measures with provided GAAP reconciliations - The report includes forward-looking statements concerning projected growth and financial performance, which are subject to various risks and uncertainties[15][16] - Non-GAAP measures such as tangible book value per common share are used, and reconciliations to GAAP are provided to aid investor understanding[17]