8-K: Bank First Reports Strong Q3 2025 Earnings Growth

Bank First Corporation announced a significant increase in net income and earnings per share for the third quarter of 2025, driven by loan expansion and improved loan yields.

Summary

• Net income for Q3 2025 was $18.0 million, up from $16.6 million in Q3 2024.
• Earnings per common share for Q3 2025 reached $1.83, an increase from $1.65 in Q3 2024.
• For the first nine months of 2025, net income totaled $53.1 million, or $5.36 per share, compared to $48.0 million, or $4.75 per share, for the same period in 2024.
• Adjusted net income (non-GAAP) for Q3 2025 was $18.8 million, or $1.91 per share.
• Net interest income (NII) for Q3 2025 was $38.3 million, an increase of $2.4 million from Q3 2024.
• Net interest margin (NIM) improved to 3.88% in Q3 2025, up from 3.76% in Q3 2024.
• Total loans grew to $3.63 billion at September 30, 2025, an annualized growth rate of 5.5% during Q3 2025.
• Nonperforming assets increased to $13.9 million, or 0.31% of total assets, at September 30, 2025, from $11.9 million, or 0.28%, at September 30, 2024.
• Stockholders' equity decreased by $11.6 million from the end of 2024, primarily due to $48.1 million in dividends and $22.0 million in share repurchases outpacing earnings.
• Incurred over $891,000 in merger expenses related to the acquisition of First National Bank & Trust (Centre 1 Bancorp, Inc.), scheduled to close on January 1, 2026.

Sentiment

Score: 8

Explanation: The company reported strong year-over-year growth in net income and EPS, driven by favorable net interest margin expansion and solid loan growth. While nonperforming assets saw a slight increase and capital declined due to shareholder returns, the overall operational performance and strategic acquisition plans indicate a positive trajectory.

Positives

• Net income increased to $18.0 million in Q3 2025 from $16.6 million in Q3 2024.
• Earnings per common share rose to $1.83 in Q3 2025 from $1.65 in Q3 2024, representing a nearly 13% increase year-over-year for the first nine months.
• Net interest income (NII) grew by $2.4 million from Q3 2024 to $38.3 million in Q3 2025.
• Net interest margin (NIM) expanded to 3.88% in Q3 2025 from 3.76% in Q3 2024, driven by higher loan yields and lower rates on interest-bearing liabilities.
• Loan portfolio yields increased by 10 basis points compared to the prior quarter.
• Average rate paid on interest-bearing liabilities declined by 7 basis points due to repricing of maturing certificates of deposit.
• Total loans increased by $158.7 million year-over-year to $3.63 billion, with an annualized growth rate of 5.5% in Q3 2025.
• Noninterest income increased to $6.0 million in Q3 2025 from $4.9 million in Q3 2024.
• Income from the investment in Ansay & Associates, LLC increased by $0.3 million year-over-year to $1.3 million in Q3 2025.
• A positive valuation adjustment of $0.3 million was recorded for mortgage servicing rights in Q3 2025, compared to a negative adjustment in the prior-year quarter.
• Asset quality metrics remain strong with negligible net loan losses during the quarter.

Negatives

• Provision for credit losses increased to $0.7 million in Q3 2025 from $0.2 million in Q2 2025 and $0 in Q3 2024, primarily due to increasing loan portfolio balances.
• Nonperforming assets increased to $13.9 million at September 30, 2025, from $9.2 million at December 31, 2024, and $11.9 million at September 30, 2024.
• Nonperforming assets to total assets ratio increased to 0.31% at September 30, 2025, from 0.21% at December 31, 2024, and 0.28% at September 30, 2024.
• Stockholders' equity decreased by $11.6 million from the end of 2024 and $0.8 million from September 30, 2024, as dividends and share repurchases outpaced earnings.
• Total assets declined by $74.6 million from December 31, 2024, to $4.42 billion at September 30, 2025.
• Total deposits decreased by $122.3 million from seasonal highs at December 31, 2024, to $3.54 billion at September 30, 2025.
• Noninterest-bearing demand deposits as a percentage of total deposits decreased to 28.2% at September 30, 2025, from 29.3% at September 30, 2024.
• Outside service fees, primarily related to the acquisition of First National Bank & Trust (Centre 1 Bancorp, Inc.), contributed to elevated noninterest expenses, totaling $1.8 million in Q3 2025, with $0.9 million specifically for this acquisition.

Risks

• Business and economic conditions nationally, regionally, and in target markets, particularly Wisconsin.
• Changes in government interest rate policies.
• Ability to effectively manage problem credits.
• Risks associated with the pursuit of future acquisitions.
• Ability to successfully execute various business strategies, including potential acquisition opportunities.
• General competitive, economic, political, and market conditions.

Future Outlook

Management expects loan repricing to continue boosting loan portfolio yields. The acquisition of First National Bank & Trust (Centre 1 Bancorp, Inc.) is scheduled to close on January 1, 2026, which is anticipated to impact future financial performance, growth, and strategies.

Management Comments

• "Earnings per share through the first three quarters of 2025 increased by nearly 13% compared to the same period last year, despite incurring over $891,000 in merger expenses related to our acquisition of First National Bank & Trust in Beloit Wisconsin, which is scheduled to close on January 1, 2026."
• "This continued growth in earnings was driven by mid-single-digit loan expansion and an increase in loan yields due to repricing."
• "We expect loan repricing to continue boosting our loan portfolio yields for some time to come."

Industry Context

Bank First Corporation's strong Q3 performance, marked by expanding net interest margin and mid-single-digit loan growth, indicates resilience in a potentially challenging interest rate environment. The focus on loan repricing and strategic acquisitions aligns with broader banking industry trends where institutions seek to optimize asset yields and expand market share amidst competitive pressures and evolving economic conditions. The increase in provision for credit losses, while tied to loan growth, also reflects a cautious approach to credit risk, a common theme in the current economic climate.

Comparison to Industry Standards

• The filing does not provide specific comparable companies, projects, or results to global benchmarks.

Stakeholder Impact

• Shareholders: Positive impact from increased earnings per share and a declared quarterly cash dividend of $0.45 per common share. However, stockholders' equity decreased due to dividends and share repurchases outpacing earnings.
• Customers: Potential for expanded services and branch network through upcoming acquisitions.
• Employees: Personnel expenses increased due to standard cost-of-living and merit adjustments, indicating stable compensation.

Next Steps

• Closing of the acquisition of First National Bank & Trust (Centre 1 Bancorp, Inc.) on January 1, 2026.
• Payment of a quarterly cash dividend of $0.45 per common share on January 7, 2026.
• Continued loan repricing to boost loan portfolio yields.

Key Dates

Recommendation

Bank First Corporation delivered robust Q3 2025 results, showcasing significant year-over-year growth in net income and earnings per share. The expansion of net interest margin, driven by effective loan repricing and managed interest-bearing liabilities, indicates strong operational efficiency. Despite a slight increase in nonperforming assets, the overall asset quality remains strong with negligible net loan losses. The company's strategic acquisitions, set to close in early 2026, position it for continued growth and market expansion. While capital declined due to shareholder returns, the underlying profitability and positive future outlook on loan yields suggest a favorable investment opportunity for long-term growth.

Keywords

Bank First Corporation, BFC, Earnings Report, Q3 2025, Financial Results, Net Income, EPS, Net Interest Margin, Loan Growth, Acquisition, Banking, Wisconsin, Financial Services, Community Bank