8-K: Bank First Reports Strong Q4, Full-Year 2025 Earnings

Bank First Corporation announced robust fourth-quarter and full-year 2025 financial results, marked by increased net income, EPS, and a significant dividend hike, alongside a major acquisition.

Summary

• Net income for the fourth quarter of 2025 was $18.4 million, or $1.87 per share, compared to $17.5 million, or $1.75 per share, for the prior-year fourth quarter.
• For the full year ended December 31, 2025, net income was $71.5 million, or $7.23 per share, up from $65.6 million, or $6.50 per share, for 2024.
• Adjusted net income (non-GAAP) for Q4 2025 was $19.6 million ($2.00 per share) and $73.4 million ($7.42 per share) for full year 2025, after removing one-time acquisition expenses and asset sale impacts.
• Annualized return on average assets was 1.65% for Q4 2025 and 1.62% for the full year 2025.
• A quarterly cash dividend of $0.50 per share was declared, representing an 11.1% increase over the prior quarter and prior-year fourth quarter.
• Net interest income (NII) for Q4 2025 was $40.2 million, an increase of $4.6 million from Q4 2024.
• Net interest margin (NIM) improved to 4.01% for Q4 2025, up from 3.61% in Q4 2024, driven by higher loan yields and a 13 basis point reduction in the average rate paid on interest-bearing liabilities.
• No provision for credit losses was recorded in Q4 2025 due to continued strong asset quality metrics and a slight contraction in the loan portfolio.
• Total assets reached $4.51 billion at December 31, 2025, an annualized growth of 7.8% for the quarter.
• Total deposits grew by an annualized rate of 17.7% during Q4 2025, reaching $3.70 billion, with noninterest-bearing demand deposits comprising 27.1% of total deposits.
• Nonperforming assets remained negligible at $9.0 million, or 0.20% of total assets, at December 31, 2025.
• Stockholders' equity totaled $643.8 million, with book value per common share at $65.47 and tangible book value per common share (non-GAAP) at $46.01.
• The acquisition of Centre 1 Bancorp, Inc. (FNBT) successfully closed on January 1, 2026, expanding the Bank into Walworth, Rock, and Green Counties in Wisconsin, and Winnebago County in Illinois, and adding Trust and Wealth Management services.

Sentiment

Score: 8

Explanation: The filing reports strong financial performance with significant increases in net income, EPS, and net interest margin. The successful completion of a major acquisition expands the company's market and service offerings, and a substantial dividend increase signals confidence. Asset quality remains strong, indicating a very positive outlook despite some one-time acquisition-related expenses.

Positives

• Net income increased to $18.4 million in Q4 2025 from $17.5 million in Q4 2024, and to $71.5 million for FY 2025 from $65.6 million in FY 2024.
• Earnings per common share (EPS) grew to $1.87 in Q4 2025 from $1.75 in Q4 2024, and to $7.23 for FY 2025 from $6.50 in FY 2024, representing over 15% annual growth.
• Net Interest Margin (NIM) significantly improved to 4.01% in Q4 2025 from 3.61% in Q4 2024, driven by higher loan yields and lower funding costs.
• No provision for credit losses was recorded in Q4 2025, reflecting strong asset quality.
• Total deposits grew at an annualized rate of 17.7% during Q4 2025, demonstrating strong funding capabilities.
• Nonperforming assets remained low at 0.20% of total assets, indicating excellent credit quality.
• The quarterly cash dividend increased by 11.1% to $0.50 per share, signaling confidence in future performance.
• The acquisition of Centre 1 Bancorp, Inc. (FNBT) is a transformative event, expanding the Bank's geographic footprint and adding Trust and Wealth Management services.
• Income from the investment in Ansay & Associates, LLC increased by 11.8% for the full year 2025.
• Gains on sales of mortgage loans increased by 39.0% for the full year 2025.

Negatives

• Incurred $1.5 million in expenses related to the Centre acquisition during 2025 ($0.7 million in Q4 2025 and $0.9 million in Q3 2025).
• Occupancy, equipment, and office expense was negatively impacted by a $0.9 million loss from the razing and rebuilding of a branch location in Denmark, Wisconsin.
• The loan portfolio contracted by $25.0 million during Q4 2025, partially due to successfully exiting several substandard relationships with related loan balances of over $21.2 million.
• Experienced a minimal negative adjustment to its mortgage servicing rights asset during Q4 2025.
• A decline in yield earned on the Bank's excess cash reserves resulted from recent interest rate cuts by the Federal Reserve Bank.

Risks

• Business and economic conditions nationally, regionally, and in target markets, particularly in Wisconsin and the geographic areas of operation.
• 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

The company anticipates realizing benefits, costs, and synergies from the recently completed merger with Centre. It projects future growth, anticipated financial performance, financial condition, and credit quality, and aims to achieve management's long-term performance goals. The company also expects to manage the anticipated effects on its business, financial condition, and results of operations from expected developments or events, and to execute its business, growth, and strategies.

Management Comments

• "We are pleased to announce that the Company's annual earnings per share increased by more than 15% despite incurring $1.5 million in expenses related to the merger with Centre, the parent company of First National Bank and Trust Company (FNBT), headquartered in Beloit, Wisconsin." Mike Molepske, Chairman and CEO of Bank First.
• "The acquisition of FNBT is the most transformational event in Bank First's 131-year history, bringing together two relationship-based, community-focused organizations." Mike Molepske.
• "This acquisition is more than twice the size of our largest previous merger, expands us into Walworth, Rock, and Green Counties in Wisconsin, and into Winnebago County in Illinois, and brings Trust and Wealth Management to Bank First." Mike Molepske.

Industry Context

The acquisition of First National Bank and Trust Company (FNBT) is a significant strategic move for Bank First, substantially expanding its geographic footprint into new counties in Wisconsin and Illinois. This expansion, coupled with the addition of Trust and Wealth Management services, diversifies the company's offerings and enhances its competitive position within the regional banking sector. The strong net interest margin improvement, despite recent Federal Reserve interest rate cuts, suggests effective asset-liability management in a dynamic interest rate environment, potentially outperforming some industry peers facing margin compression.

Comparison to Industry Standards

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

Stakeholder Impact

• Shareholders: Positive impact due to strong financial performance, including increased net income, EPS, and an 11.1% increase in the quarterly cash dividend. The strategic acquisition is expected to drive future growth and value.
• Employees: The acquisition of FNBT implies the integration of employees from the acquired institution, potentially leading to changes in roles or organizational structure, though not explicitly detailed as an impact. Bank First now employs approximately 500 full-time equivalent staff.
• Customers: Expanded geographic reach and new service offerings, particularly Trust and Wealth Management, through the FNBT acquisition will benefit customers in Walworth, Rock, Green, and Winnebago Counties.
• Creditors: Strong asset quality metrics, improved net interest margin, and overall financial health indicate a stable and well-managed institution, which is favorable for creditors.

Next Steps

• Integration of Centre 1 Bancorp, Inc. (FNBT) operations and services following the January 1, 2026, closing.
• Continued execution of business strategies, including managing problem credits and pursuing potential future acquisition opportunities.
• Monitoring and adapting to changes in economic conditions and government interest rate policies.

Key Dates

Recommendation

Bank First Corporation has demonstrated exceptional financial performance with significant year-over-year growth in net income and EPS, coupled with a robust expansion in its net interest margin. The successful and transformative acquisition of Centre 1 Bancorp, Inc. strategically broadens the company's market presence and service offerings, positioning it for sustained long-term growth. The strong asset quality, evidenced by negligible nonperforming assets and no provision for credit losses in the quarter, along with a substantial 11.1% dividend increase, underscores management's confidence and the company's fundamental strength. These factors collectively present a compelling investment opportunity.

Keywords

Banking, Financial Services, Earnings, Net Income, EPS, Dividend, Acquisition, Community Bank, Wisconsin, Illinois, Asset Quality, Net Interest Margin, Deposits, Loans, Corporate Governance, Bank First Corporation, BFC, SEC Filing, 8-K