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Bank First Corporation Financial Results for Q4 2024

Bank First Corporation (NASDAQ: BFC), the holding company for Bank First, N.A., has reported substantial financial accomplishments for the fourth quarter of 2024. The bank achieved net income of $17.5 million or $1.75 per share, a decrease from $34.9 million or $3.39 per share reported in the same quarter last year. Despite this decline compared to a stellar prior-year quarter, the overall performance for 2024 remains positive, with total earnings hitting $65.6 million or $6.50 per share for the year, a slight drop from $74.5 million or $7.28 per share in 2023.

A comparison of earnings highlights the effects of one-off transactions from 2023 affecting the year-end figures. The fourth quarter saw particular adjustments, with the sale of 100% of its member interest in UFS, LLC resulting in a prior-year gain of $38.9 million. Other factors included the redemption of debt securities related to Hometown Bancorp and losses from the sale of US Treasury securities.

Financial Adjustments and Performance Metrics

By removing the influence of some notable one-time events, Bank First reported an adjusted net income of $17.4 million or $1.74 per share for Q4, marking a significant increase from $14.8 million or $1.44 per share for the same quarter in the previous year. For the entire year of 2024, adjusted net income was $65.0 million, compared to $59.2 million in 2023.

Bank First’s CEO, Mike Molepske, expressed satisfaction with the overall performance, emphasizing that the bank maintained an impressive return on assets of 1.56%. The consistency in financial success was attributed to the dedication of the team and a commitment to serving community needs with innovative solutions.

Operating Results

In terms of net interest income (NII), Bank First recorded $35.6 million for Q4, representing only a modest decrease from the previous quarter but a $2.6 million increase year-over-year. Notably, the bank's net interest margin (NIM) was 3.61%, slightly down from 3.76% in the earlier quarter but up from 3.53% a year ago. The seasonal fluctuations in deposit rates and a portfolio mix supported the bank’s bottom line.

An interesting element of Q4 was the negative provision for credit losses recorded at $1.0 million, a favorable development compared to previous metrics of no provision or a positive provision of $0.5 million in Q4 2023. This was largely due to improvements in financial trends concerning certain relationships from the Hometown acquisition, leading to a reduction in reserves.

Noninterest Income and Expenses

Bank First's noninterest income fell to $4.5 million in Q4, down from $4.9 million and $42.5 million from the previous quarter and last year respectively. The disparity primarily arose due to the exceptional gains recorded in 2023. Comparatively, total noninterest expenses were $19.3 million, reduced significantly from $28.9 million recorded in Q4 2023, which had included substantial one-off losses.

Balance Sheet Overview

Looking at the balance sheet, the total assets for Bank First stood at $4.50 billion, representing a 6.5% increase year-over-year. Investment securities climbed significantly by 36%, demonstrating a strategic response to market demands for collateralization. Moreover, total loans reached $3.52 billion with an annualized loan growth of 5.2% in Q4 2024.

Conclusion

Ultimately, Bank First's solid performance in the fourth quarter of 2024 illustrates resilience despite the impacts of previous financial transactions. The board also declared a quarterly cash dividend of $0.45 per share, reflecting a 28.6% increase versus a year prior. With these strong fundamentals, Bank First is well-positioned to continue its growth trajectory in the evolving financial landscape, as it maintains a focus on efficient resource management and community-oriented banking practices.

For those looking to keep up with Bank First Corporation's future updates and announcements, they can visit the company's website or contact their Chief Financial Officer at the provided details.