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Bank First Corp (BFC)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 delivered solid core performance: net income $16.9M and $1.71 EPS, with NIM expanding to 3.72% on deposit repricing and higher loan yields .
  • Against S&P Global Wall Street consensus, Q2 EPS and revenue were below expectations, driven by lower noninterest income (absence of prior quarter BOLI gains and negative MSR valuation) and elevated project-related expenses; consensus EPS was 1.81 vs reported $1.71, and consensus revenue was $43.85M vs actual $41.42M* .
  • Deposit mix and asset quality remained resilient (NPA/Assets 0.31%), while capital declined due to a $3.50 special dividend and buybacks ($22.0M YTD), even as book value per share stayed strong at $62.27 .
  • Strategic catalyst: announced all-stock acquisition of Centre 1 Bancorp, expanding into southern WI/northern IL and increasing combined assets to ~$5.91B, loans ~$4.58B, deposits ~$4.89B—supporting medium-term NIM scale and fee capabilities .
  • Management tone constructive on yield-curve normalization benefiting NIM; June NIM reached 3.77% (3.70% ex-purchase accounting), setting up favorable margin trajectory into 2H25 .

What Went Well and What Went Wrong

What Went Well

  • NIM improved to 3.72% (June 3.77%, 3.70% ex-purchase accounting) on higher loan yields and lower deposit costs; rates paid on interest-bearing deposits fell 15 bps YoY .
  • Loan growth continued: total loans reached $3.58B (+$63.2M YTD; +$151.7M YoY) with broad-based portfolio support .
  • Strategic M&A: Centre 1 Bancorp deal enhances geography, scale to ~$5.91B assets, and cross-sell (wealth management), with CEO framing it as “two long-standing, community-focused institutions” combining strengths .

Management quotes:

  • “If this move towards normalization continues, Bank First should see an improving net interest margin over the coming months and years.” — Mike Molepske, Chairman & CEO .
  • “This partnership brings together two long-standing, community-focused institutions...” — Mike Molepske .

What Went Wrong

  • Noninterest income fell to $4.9M (vs $6.6M in Q1) on the absence of $1.0M BOLI gains and a negative MSR valuation (-$0.1M), pressuring total revenue vs consensus .
  • Noninterest expense rose YoY to $20.8M on occupancy (branch remodels/new branch) and elevated data processing for the digital platform upgrade, dampening operating leverage .
  • Asset quality metrics ticked up (NPA/Assets 0.31% vs 0.17% in Q1 and 0.27% in PY), and provision expense of $0.2M was modestly lower QoQ but above PY zero provision .

Financial Results

Income and Profitability (quarterly progression)

Metric ($USD Millions)Q4 2024Q1 2025Q2 2025
Net Interest Income$35.56 $36.54 $36.70
Noninterest Income$4.51 $6.59 $4.92
Provision for Credit Losses$(1.00) $0.40 $0.20
Noninterest Expense$19.29 $20.60 $20.76
Net Income$17.54 $18.24 $16.88
NIM (tax-equivalent)3.61% 3.65% 3.72%

EPS progression

MetricQ4 2024Q1 2025Q2 2025
EPS (Reported)$1.75 $1.82 $1.71

Q2 2025 vs Wall Street Consensus (S&P Global)

MetricConsensusActual
EPS ($)1.81*1.71
Revenue ($USD Millions)43.85*41.42*

Values with asterisk (*) retrieved from S&P Global.

Segment / Portfolio Breakdown (Loans at period-end)

Loan Category ($USD Millions)Q2 2024Q1 2025Q2 2025
Commercial/Industrial$507.41 $507.85 $628.53
CRE – Owner Occupied$920.52 $973.58 $841.75
CRE – Non-Owner Occupied$472.27 $460.08 $518.64
Multifamily$333.46 $355.00 $377.22
Construction & Development$229.93 $278.48 $249.86
Residential 1–4 Family$897.09 $903.28 $891.69
Consumer & Other$67.95 $69.81 $72.69
Total Loans$3,428.64 $3,548.07 $3,580.36

KPIs

KPIQ4 2024Q1 2025Q2 2025
Total Assets ($B)$4.50 $4.51 $4.37
Total Deposits ($B)$3.66 $3.67 $3.60
NPA / Assets (%)0.21% 0.17% 0.31%
NPL / Total Loans (%)0.24% 0.19% 0.38%
ROAA (annualized)1.60% 1.64% 1.54%
Book Value / Share ($)$63.89 $65.02 $62.27
Tangible BV / Share ($)$44.28 $45.46 $42.57
Noninterest-Bearing Deposits (% total)28.7% (6/30/24) 27.4% (12/31/24) 27.5% (6/30/25)
Share Repurchases (Shares / $)0 / $0 (Q4) 61,882 / $6.38M (Q1) 143,720 / $15.66M (Q2)
Dividend Declared$0.45/quarter $0.45/quarter $0.45/quarter; $3.50 special

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Net Interest Margin trajectory2H25+Not quantifiedManagement expects improving NIM as yield curve normalizes Raised (qualitative)
Dividend per Common ShareQ3 2025 pay date Oct 8$0.45 $0.45 declared; record 9/24 Maintained
Special DividendQ2 2025None$3.50 per share declared in Q2 New (one-time)
Operating Expenses (Data Processing)2025Not quantifiedElevated due to digital platform upgrade Elevated (ongoing)
Branch Investments2025Not quantifiedRemodels and new Sturgeon Bay branch increased occupancy expense Elevated (near-term)

No formal quantitative revenue/OpEx/tax-rate guidance provided in the quarter’s materials .

Earnings Call Themes & Trends

Note: No Q2 2025 earnings call transcript was available in the document catalog.

TopicQ-2 (Q4 2024)Q-1 (Q1 2025)Current (Q2 2025)Trend
Interest-rate environment & NIMNIM 3.61%; cost of funds down 6 bps QoQ; seasonal deposit buildup pressured NIM NIM 3.65%; cost of funds declined 8 bps QoQ NIM 3.72%; June 3.77% (3.70% ex-PA); mgmt expects improving NIM as curve normalizes Improving
Digital platform upgradeElevated data processing spending continued Project costs moderated vs prior quarters Elevated expenditures again in Q2 for upgrade Mixed (near-term expense)
Deposit mix & pricingSeasonal high-rate deposits in Q4; collateral needs drove securities build Non-brokered CDs rate down 18 bps; deposit growth Rates paid down YoY by 15 bps; noninterest-bearing 27.5% of deposits Favorable cost trend
Asset qualityNPA/Assets 0.21%; negative provision ($1.0M) NPA/Assets 0.17%; net charge-off $0.8M on one customer NPA/Assets 0.31%; modest provision $0.2M Stable but slightly higher
M&A / strategicPost-acquisition efficiencies noted Organic growth; no new deals Centre 1 Bancorp merger announced; combined assets ~$5.91B Expansion
Capital actionsBuybacks $0 in Q4; dividend $0.45 Buybacks $6.38M; dividend $0.45 Buybacks $15.66M; special dividend $3.50 Shareholder returns elevated

Management Commentary

  • CEO on NIM outlook: “While we pride ourselves on being interest rate neutral… 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.” — Mike Molepske .
  • CEO on strategic M&A: “This partnership brings together two long-standing, community-focused institutions united by a shared commitment to responsive, relationship-based banking.” — Mike Molepske .
  • Q1 tone on execution: “Our team of relationship-focused bankers achieved significant financial returns… driven by an increase in core loan and deposit growth...” — Mike Molepske .

Q&A Highlights

  • No Q2 2025 earnings call transcript was available; therefore, Q&A details are unavailable from source documents.
  • Press release clarifications: purchase accounting impacted NII/NIM (Q2 +$0.6M NII; NIM +3 bps), noninterest income variance driven by absence of $1.0M BOLI gains and a negative MSR valuation (-$0.1M), and elevated data processing/occupancy costs tied to platform upgrades and branch projects .

Estimates Context

  • EPS: Reported $1.71 vs S&P Global consensus 1.81* — miss of $0.10, largely due to softer noninterest income and higher project-related expenses .
  • Revenue: Actual $41.42M* vs S&P Global consensus $43.85M* — miss, consistent with decline in noninterest income (Ansay seasonality flat QoQ, negative MSR adjustment, no BOLI gain) .
  • Estimates depth: Only 2 EPS and revenue estimates contributed to consensus, which may increase quarter-to-quarter volatility in estimate comparisons*.

Values with asterisk (*) retrieved from S&P Global.

Key Takeaways for Investors

  • Margin tailwind forming: NIM expansion to 3.72% with June at 3.77% indicates improving core profitability into 2H25 as deposit costs decline and loan yields rise .
  • Near-term EPS pressure from transient fee items and project costs: absence of Q1 BOLI gains and elevated digital platform spending weighed on Q2 versus consensus; watch for normalization of noninterest income run-rate .
  • Credit quality remains sound despite slight uptick in NPA metrics; provision expense modest at $0.2M and allowance at 1.24% of loans supports stability .
  • Capital return robust but reduces equity: $3.50 special dividend plus buybacks ($22.0M YTD) lowered book/tangible book; monitor capital ratios as M&A and organic growth proceed .
  • Strategic expansion via Centre 1 Bancorp positions BFC for scale efficiencies, broader markets, and fee cross-sell; regulatory and closing timeline targeted 1Q26 with system conversion 2Q26 .
  • Trading implication: Consensus misses may cap near-term momentum, but improving NIM trajectory and strategic M&A provide medium-term rerating potential as revenue mix normalizes .
  • Watch list: progress on digital platform upgrade and operating expense normalization, deposit mix trends (noninterest-bearing ~27.5%), and continued NIM expansion amid macro rate path .