Bank First(US:BFC)2025-11-07 18:21Company Overview - Bank First Corporation operates as a holding company for Bank First, N.A., which has 27 banking locations across various counties in Wisconsin[92]. Income Sources - The primary source of income for the Bank is interest received on loans and investments, with a significant reliance on deposits for funding[94]. - The Bank generates additional income through net gains on the sale of loans held for sale and servicing income from those sold loans[94]. Interest Income and Expenses - Interest income for the three months ended September 30, 2025, was $55,456,000, an increase from $54,032,000 for the same period last year, representing a growth of 2.6%[96]. - Net interest income after provision for credit losses was $37,603,000 for the three months ended September 30, 2025, compared to $36,561,000 for the same period last year, reflecting an increase of 2.9%[96]. - Total interest income increased by $1.4 million, or 2.6%, to $55.4 million for the three months ended September 30, 2025, compared to $54.0 million for the same period in 2024[108]. - Interest expense decreased by $0.9 million, or 5.2%, to $17.2 million for the three months ended September 30, 2025, compared to $18.1 million for the same period in 2024[109]. - The average rate paid on interest-bearing liabilities decreased from 2.79% for the three months ended September 30, 2024, to 2.52% for the same period in 2025[107]. Noninterest Income and Expenses - Noninterest income totaled $5,953,000 for the three months ended September 30, 2025, up from $4,893,000 in the same period last year, marking a growth of 21.6%[96]. - Noninterest income increased by $1.1 million to $6.0 million for Q3 2025, up 22% from $4.9 million in Q3 2024[115]. - Noninterest expense rose by $1.0 million to $21.1 million for Q3 2025, primarily driven by outside service fees which increased by 65% to $1.8 million[118]. Net Income and Earnings - Net income for the three months ended September 30, 2025, was $17,990,000, an increase from $16,552,000 for the same period last year, representing a growth of 8.7%[96]. - Earnings per common share (diluted) for the three months ended September 30, 2025, was $1.83, compared to $1.65 for the same period last year, reflecting an increase of 10.9%[96]. - Net income for the nine months ended September 30, 2025, increased by $5.1 million to $53.1 million compared to $48.0 million for the same period in 2024[121]. Assets and Loans - Total assets as of September 30, 2025, were $4,420,411,000, an increase from $4,294,498,000 year-over-year, representing a growth of 2.9%[96]. - Loans outstanding as of September 30, 2025, were $3,629,663,000, compared to $3,470,920,000 as of September 30, 2024, indicating an increase of 4.6%[96]. - Total loans increased by $112.5 million, or 3.2%, to $3.63 billion as of September 30, 2025, compared to $3.52 billion as of December 31, 2024[151]. Deposits - Deposits as of September 30, 2025, were $3,538,761,000, a slight decrease from $3,661,073,000 year-over-year, reflecting a decline of 3.4%[96]. - Total deposits decreased to $3.54 billion as of September 30, 2025, down from $3.66 billion at December 31, 2024, reflecting a shift from noninterest-bearing to interest-bearing deposits[182]. Credit Losses and Nonperforming Loans - An Allowance for Credit Losses (ACL) is maintained to absorb potential losses on loans, established through provisions charged against operating earnings[94]. - The company recorded a provision for credit loss of $0.7 million for Q3 2025, compared to no provision in Q3 2024[113]. - Nonperforming loans totaled $13.9 million as of September 30, 2025, an increase from $8.5 million at December 31, 2024[172]. - The allowance for credit losses (ACL) on loans was $44.5 million, representing 1.23% of period-end loans[176]. Capital and Equity - Total stockholders' equity decreased to $628.1 million at September 30, 2025, down from $639.7 million at December 31, 2024[209]. - The Bank was well capitalized as of September 30, 2025, with total capital to risk-weighted assets ratio at 13.3%, exceeding the minimum required of 8.0%[218]. - The Bank's Tier 1 capital to risk-weighted assets ratio was 11.8%, significantly above the minimum requirement of 6.0%[221]. Interest Rate Risk Management - The Bank's interest rate risk management aims to minimize adverse impacts on net interest income and capital[230]. - The Company actively manages its interest rate sensitivity position to control exposure to risks associated with interest rate movements[233]. - As of September 30, 2025, a 300 basis point increase in interest rates is projected to decrease net interest income by 3.8%[240]. Securities and Investments - The fair value of securities available for sale was $167.1 million as of September 30, 2025, down from $223.1 million at December 31, 2024[192]. - The total held to maturity securities amounted to $106.823 million with a weighted average yield of 4.0%[196]. - The Company had no net losses on sales of securities during the nine months ended September 30, 2025, contrasting with net losses of $30,000 during the same period in 2024[194].