Bank First Reports Strong Financial Performance for Q1 2025 with Increased Earnings and Dividends

Bank First Corporation's Financial Highlights for Q1 2025

Bank First Corporation (NASDAQ: BFC), the parent company of Bank First, N.A., has announced impressive financial results for the first quarter of 2025, reflecting the strength of their operational strategies. The bank recorded a net income of $18.2 million, equating to $1.82 per share, a substantial increase compared to the $15.4 million, or $1.51 per share, reported during the same period last year. The results indicate a notable growth trend, with earnings per share rising by 20.53% year-on-year.

CEO Mike Molepske expressed pride in the accomplishments of the bank’s dedicated team of relationship-focused bankers, attributing these results to the growth in core loans and deposits initiated late the previous year and carrying forward into 2025. The operating results reveal that net interest income (NII) reached $36.5 million, increasing by $1 million from the last quarter and by $3.2 million compared to Q1 2024. Additionally, the net interest margin (NIM) stood at 3.65%, slightly up from 3.61% in the preceding quarter and up from 3.62% a year earlier.

In terms of operational efficiency, the year has been favorable as the cost of funds fell by 0.08% quarter-over-quarter, whilst maintaining high levels of interest-bearing deposits. The bank’s average rate on non-brokered certificates of deposit also saw a decline of 0.18%, emphasizing effective management of funding costs. However, it reported a provision for credit losses totaling $0.4 million, up from $0.2 million a year prior, attributed to net loan charge-offs reaching $0.8 million.

Financially, noninterest income surged to $6.6 million for Q1 2025, a significant increase over the $4.4 million recorded during the same period last year. This rise was supported by improved service charges from a renegotiated vendor incentive program related to the bank’s card payment processing system. The bank’s stake in Ansay Associates, LLC also yielded a positive contribution of $0.2 million.

Expenses were slightly moderated compared to the prior year, with total noninterest expenses rising to $20.6 million. Notably, personnel expenses remained consistent, and various operational efficiencies helped mitigate inflationary impacts on wages. The bank continues to manage its amortization of core deposit intangible assets effectively, influencing the overall expense structure favorably.

Tax considerations played a role in affecting year-over-year comparisons, partly due to a state provision that introduced an income tax exclusion for certain loans. This provision contributed to a lowered effective tax rate this quarter.

Regarding the balance sheet, total assets amassed to $4.51 billion as of March 31, 2025, indicating a growth of $11.4 million from December 31, 2024, and a remarkable increase of $406.6 million from the prior year. Total loans reached $3.55 billion, with an annualized growth rate of 3.6% during what is traditionally a slow growth quarter. Deposits, primarily core types, rose to $3.67 billion, an increase of $13.1 million since the end of the previous year.

The bank’s asset quality sees steady improvement, with total nonperforming assets declining to $7.6 million. This decrease reflects the proactive management of loan portfolios and illustrates the effectiveness of the bank’s risk management strategies, as nonperforming assets to total assets reduced to 0.17%.

Bank First’s capital position remains robust with stockholders’ equity totaling $648.4 million. The recent quarter saw dividends of $4.5 million declared, alongside stock repurchases totaling $6.4 million, more than offset by their earnings.

In conclusion, Bank First Corporation’s performance highlights from the first quarter of 2025 showcase their robust business model, underpinned by a strong focus on core customer relationships and sustainable growth strategies. The upcoming quarterly cash dividend of $0.45 per share, set for distribution to shareholders on July 9, 2025, further reflects the bank’s solid financial health and commitment to delivering shareholder value.

For further details, visit Bank First's official website.