Bank First Announces Net Income for the Second Quarter of 2025

• Net income of $16.9 million and $35.1 million for the three and six months ended June 30, 2025, respectively
• Earnings per common share of $1.71 and $3.53 for the three and six months ended June 30, 2025, respectively
• Annualized return on average assets of 1.54% and 1.59% for the three and six months ended June 30, 2025, respectively
• Quarterly cash dividend of $0.45 per share declared, matching the prior quarter and 12.5% higher than the prior-year second quarter

MANITOWOC, Wis., July 18, 2025 /PRNewswire/ -- Bank First Corporation (NASDAQ: BFC) ("Bank First" or the "Bank"), the holding company for Bank First, N.A., reported net income of $16.9 million, or $1.71 per share, for the second quarter of 2025, compared with net income of $16.1 million, or $1.59 per share, for the prior-year second quarter. For the six months ended June 30, 2025, Bank First earned $35.1 million, or $3.53 per share, compared to $31.5 million, or $3.10 per share for the same period in 2024.

"Bank First continues to benefit from recent moves towards normalization of the yield curve after an extended period of yield curve inversion," stated Mike Molepske, Chairman and CEO of Bank First. "While we pride ourselves on being interest rate neutral, which minimizes the impact of changes in interest rates on our earnings, a normalized yield curve benefits the entire banking industry. If this move towards normalization continues, Bank First should see an improving net interest margin over the coming months and years."

Operating Results

Net interest income ("NII") during the second quarter of 2025 was $36.7 million, up $0.2 million from the previous quarter and up $3.7 million from the second quarter of 2024. The impact of net accretion and amortization of purchase accounting related to interest-bearing assets and liabilities from past acquisitions ("purchase accounting") increased NII by $0.6 million, or $0.05 per share after tax, during the second quarter of 2025, compared to $1.0 million, or $0.08 per share after tax, during the previous quarter and $1.2 million, or $0.09 per share after tax, during the second quarter of 2024.

Net interest margin ("NIM") was 3.72% for the second quarter of 2025, compared to 3.65% for the previous quarter and 3.63% for the second quarter of 2024. NII from purchase accounting increased NIM by 0.03%, 0.10% and 0.13% for each of these periods, respectively. The Bank's NIM continues to benefit from new and renewed loans pricing at higher yields while deposits, particularly certificates, continue to reprice lower. Rates earned on average earning assets increased 10 basis points while rates paid on average interest-bearing deposits decreased 15 basis points from the second quarter of 2024 to the second quarter of 2025. NIM improved through the second quarter of 2025, with total NIM for the month of June 2025 coming in at 3.77% and NIM net of the impact of purchase accounting coming in at 3.70%.

Bank First recorded a provision for credit losses of $0.2 million during the second quarter of 2025, compared to $0.4 million during the previous quarter. The Bank did not record a provision for credit losses during the second quarter of 2024. Provision expense was $0.6 million for the first six months of 2025 compared to $0.2 million for the same period during 2024.

Noninterest income was $4.9 million for the second quarter of 2025, compared to $6.6 million and $5.9 million for the prior quarter and second quarter of 2024, respectively. Income provided by the Bank's investment in Ansay & Associates, LLC totaled $1.2 million during the second quarter of 2025, matching the prior quarter but down $0.2 million from the prior-year second quarter. The Bank also experienced a $0.1 million negative valuation adjustment to its mortgage servicing rights asset during the second quarter of 2025 which compared unfavorably to $0.2 million and $0.3 million in positive valuation adjustments during the prior quarter and prior-year second quarter, respectively. Finally, the Bank benefited from a $1.0 million gain during the first quarter of 2025 and a $0.4 million gain during the second quarter of 2024 from death benefits on bank-owned life insurance policies, creating a negative variance in other non-interest income for the previous quarter and prior-year second quarter.

Noninterest expense totaled $20.8 million in the second quarter of 2025, compared to $20.6 million during the prior quarter and $19.1 million during the second quarter of 2024. Personnel expense remained well-managed, down $0.6 million from the prior quarter but up $0.4 million from the prior-year second quarter, the result of standard cost-of-living and merit increases year-over-year. Occupancy, equipment and office expense was elevated during the second quarter of 2025, up $0.3 million from the prior quarter and $0.6 million from the prior-year second quarter, the result of expenses from multiple branch remodels and the opening of a new branch in Sturgeon Bay, WI during the most recent quarter. Data processing expense was once again impacted in the most recent quarter by elevated expenditures related to the Bank's upgrade of its digital banking platform after experiencing relatively light expenditures related to these projects in the first quarter of 2025. Outside service fees increased by $0.3 million from the prior quarter but were down $0.3 million from the second quarter of 2024. Outside service fees during the second quarter of 2025 include a $0.1 million commission related to the sale of a former branch building, which resulted in a $0.2 million gain on sale, and $0.1 million in personnel recruitment fees. The second quarter of 2024 included $0.4 million in commissions related to sales of former branch buildings, which resulted in $0.5 million in gains, leading to the improved year-over-year variance.

Balance Sheet

Total assets were $4.37 billion at June 30, 2025, a $130.0 million decline from December 31, 2024, but a $219.3 million increase from June 30, 2024.

Total loans were $3.58 billion at June 30, 2025, up $63.2 million from December 31, 2024, and up $151.7 million from June 30, 2024.

Total deposits, nearly all of which remain core deposits, were $3.60 billion at June 30, 2025, down $65.6 million from seasonal highs at December 31, 2024, but up $195.5 million from June 30, 2024. Noninterest-bearing demand deposits comprised 27.5% of the Bank's total deposits at June 30, 2025, compared to 27.4% and 28.7% at December 31 and June 30, 2024, respectively.

Asset Quality

Nonperforming assets at June 30, 2025 remained negligible, totaling $13.6 million compared to $9.2 million and $11.0 million at the end of the fourth and second quarters of 2024, respectively. Nonperforming assets to total assets ended the second quarter of 2025 at 0.31%, compared to 0.21% and 0.27% at the end of the fourth and second quarters of 2024, respectively.

Capital Position

Stockholders' equity totaled $612.3 million at June 30, 2025, a decrease of $27.4 million from the end of 2024 and $2.2 million from June 30, 2024. Dividends, including a $3.50 per common share special dividend declared in the second quarter of 2025, totaling $43.6 million and repurchases of BFC common stock totaling $22.0 million outpaced earnings of $35.1 million through the first six months of 2025, causing the decline in capital. The Bank's book value per common share totaled $62.27 at June 30, 2025 compared to $63.89 at December 31, 2024 and $61.27 at June 30, 2024. Tangible book value per common share (non-GAAP) totaled $42.57 at June 30, 2025 compared to $44.28 at December 31, 2024 and $41.42 at June 30, 2024.

Dividend Declaration

Bank First's Board of Directors approved a quarterly cash dividend of $0.45 per common share, payable on October 8, 2025, to shareholders of record as of September 24, 2025.

Bank First Corporation provides financial services through its subsidiary, Bank First, N.A., which was incorporated in 1894. Bank First offers loan, deposit, and treasury management products at its 27 banking locations in Wisconsin. The Bank has grown through both acquisitions and de novo branch expansion. The Bank employs approximately 368 full-time equivalent staff and has assets of approximately $4.4 billion. Insurance services are available through its bond with Ansay & Associates, LLC. Trust, investment advisory, and other financial services are offered in collaboration with several regional partners. Further information about Bank First Corporation is available by clicking the Shareholder Services tab at www.bankfirst.com.

For further information, contact:
Kevin M LeMahieu, Chief Financial Officer
Phone: (920) 652-3200 / [email protected]

SOURCE Bank First Corporation