Bank First Corp (BFC)·Q1 2025 Earnings Summary

Executive Summary

• Q1 2025 EPS of $1.82 beat Wall Street consensus of $1.62 by ~12.7%; operating revenue of $42.7M beat $41.8M by ~2.2% as NIM expanded and cost of funds fell q/q *. Values retrieved from S&P Global.
• Net interest margin rose to 3.65% (+4 bps q/q), cost of funds declined 8 bps, and ROAA improved to 1.64% as core loan/deposit growth continued; management highlighted relationship-driven momentum and funding cost relief .
• Noninterest income benefited from a $2.3M BOLI death benefit (≈$1.0M gain) and higher service charges; Ansay equity income rose 20.6% y/y; partially offset by a $0.8M charge-off on a 2023-acquired loan and a modest $0.4M provision .
• No formal quantitative guidance; dividend held at $0.45 (up 28.6% y/y). Capital remained strong with TBVPS up to $45.46 and tangible equity/tangible assets at 10.52% .

What Went Well and What Went Wrong

• What Went Well

  • NIM expansion and funding cost relief: NIM 3.65% (3.61% prior qtr) as cost of funds fell 8 bps q/q; average CD rates declined 18 bps q/q .
  • Diversified fee momentum and one-time tailwind: Noninterest income $6.6M (+$2.2M y/y) on higher service charges, positive MSR valuation (+$0.2M), stronger Ansay income (+20.6% y/y), and $1.0M BOLI gain .
  • Management tone: “Significant financial returns… driven by an increase in core loan and deposit growth that started late last year and continued into early 2025” — CEO Mike Molepske .

• What Went Wrong

  • Credit costs ticked up: Provision $0.4M vs $(1.0)M in Q4 and $0.2M in Q1’24; net charge-offs $0.8M tied to a single acquired customer (Hometown 2023) .
  • Personnel costs seasonality: Noninterest expense $20.6M vs $19.3M in Q4’24, reflecting seasonally elevated personnel expense, though still well controlled y/y .
  • Deposit mix drift: Noninterest-bearing deposits fell to 27.4% of total (29.0% in Q1’24), reflecting a return toward pre-2020 mix; still, total core deposits grew q/q and y/y .

Financial Results

Notes: EPS consensus mean $1.615 and revenue $41.8M; actuals used for EPS and operating revenue reflect company-reported figures. Values retrieved from S&P Global.*

Balance Sheet and KPIs

Guidance Changes

Earnings Call Themes & Trends

Note: A Q1 2025 earnings call transcript was not available in the company document set; themes reflect press releases and 8-K exhibits.

Management Commentary

• CEO message: “We are delighted to announce that our team of relationship-focused bankers achieved significant financial returns in the first quarter of 2025. These results were driven by an increase in core loan and deposit growth that started late last year and continued into early 2025.” — Mike Molepske, CEO .
• Funding and margin: Cost of funds declined 8 bps q/q; average rate on non-brokered CDs declined 18 bps; NIM 3.65% with 10 bps of purchase accounting benefit .
• Fee drivers: Service charges benefited from a renegotiated card payments vendor program; MSR valuation positive; Ansay contribution up; BOLI death benefit produced a $1.0M gain .
• Expenses and efficiency: Personnel expense seasonally elevated but “relatively consistent year-over-year” as efficiency improvements offset inflation; data processing/outside services down from prior several quarters as special projects completed .
• Asset quality: NPAs declined to $7.6M (0.17% of assets), aided by resolution/charge-off of a single acquired relationship .

Q&A Highlights

• A Q1 2025 earnings call transcript was not available in the company’s filings or document set; therefore, Q&A highlights and any on-call guidance clarifications are unavailable [ListDocuments: no earnings-call-transcript 3/15–6/30/2025].

Estimates Context

• EPS: Reported $1.82 vs consensus $1.62, a material beat likely aided by stronger NIM and a higher noninterest income line; note that a $1.0M BOLI gain (~$0.08/share after tax) contributed to upside *. Values retrieved from S&P Global.
• Revenue: Operating revenue $42.7M vs $41.8M consensus; upside driven by higher service charges, Ansay equity income, MSR valuation, and BOLI gain, alongside modest NII growth *. Values retrieved from S&P Global.
• Revisions watch: Given NIM stabilization, easing cost of funds, and deposit pricing progress, outer-quarter EPS estimates may drift modestly higher; however, analysts may adjust out one-time BOLI gains and monitor seasonally softer loan growth implied in Q1 .

Key Takeaways for Investors

• Core profitability firming: NIM expansion with falling cost of funds and stable credit supported EPS; underlying trajectory ex-one-offs remains positive .
• One-time tailwind caveat: ~$1.0M BOLI gain boosted noninterest income; normalize for this when modeling run-rate EPS and fee lines .
• Credit benign but not zero: Single-relationship charge-off and small provision show acquired book cleanup; NPAs/Assets at 0.17% underscores strong asset quality .
• Funding progress: Average CD pricing rolling down; deposit costs declined 8 bps q/q; watch continued remix toward lower-cost core deposits as a sustained margin lever .
• Expense discipline: Project-related tech spend is normalizing; seasonal personnel step-up contained y/y, supporting positive operating leverage if revenue momentum persists .
• Capital return intact: Dividend maintained at $0.45 (+28.6% y/y) and buybacks continued ($6.4M in Q1), with TBVPS rising to $45.46 .
• Setup into next quarters: If funding costs continue to ease and core loan growth re-accelerates post seasonal Q1, estimate revisions could bias upward; offset risks include deposit mix drift away from NIB and macro-rate volatility impacting MSR valuations .

Footnote: Consensus estimates for EPS and revenue are from S&P Global; where shown with an asterisk, Values retrieved from S&P Global.*