- Net income of $18.2 million and earnings per common share of $1.82 for the three months ended March 31, 2025
- Earnings per common share 20.53% higher than the prior-year first quarter
- Annualized return on average assets of 1.64% for the three months ended March 31, 2025
- Quarterly cash dividend of $0.45 per share declared, matching the prior-quarter and 28.6% higher than the prior-year first quarter
MANITOWOC, Wis., April 15, 2025 /PRNewswire/ -- Bank First Corporation (NASDAQ:BFC) ("Bank First" or the "Bank"), the holding company for Bank First, N.A., reported net income of $18.2 million, or $1.82 per share, for the first quarter of 2025, compared with net income of $15.4 million, or $1.51 per share, for the prior-year first quarter.
"We are delighted to announce that our team of relationship-focused bankers achieved significant financial returns in the first quarter of 2025," stated CEO Mike Molepske. "These results were driven by an increase in core loan and deposit growth that started late last year and continued into early 2025."
Operating Results
Net interest income ("NII") during the first quarter of 2025 was $36.5 million, up $1.0 million from the previous quarter and up $3.2 million from the first quarter of 2024. The impact of net accretion and amortization of purchase accounting related to interest-bearing assets and liabilities from past acquisitions ("purchase accounting") increased NII by $1.0 million, or $0.08 per share after tax, during the first quarter of 2025, compared to $0.8 million, or $0.06 per share after tax, during the previous quarter and $1.2 million, or $0.09 per share after tax, during the first quarter of 2024.
Net interest margin ("NIM") was 3.65% for the first quarter of 2025, compared to 3.61% for the previous quarter and 3.62% for the first quarter of 2024. NII from purchase accounting increased NIM by 0.10%, 0.08% and 0.13% for each period, respectively. The Bank's cost of funds declined 0.08% quarter-over-quarter despite persistent elevated levels of interest-bearing demand and savings deposits in accounts that garner some of the highest yielding rates in the Bank's deposit portfolio. The average rate paid on the Bank's non-brokered certificates of deposit declined by 0.18% compared to the prior quarter.
Bank First recorded a provision for credit losses of $0.4 million during the first quarter of 2025, compared to $0.2 million during the first quarter of 2024. Net loan charge-offs totaled $0.8 million during the most recent quarter, comparing unfavorably to net loan recoveries totaling $0.6 million during the first quarter of 2024. The Bank charged off $0.8 million in loan balances related to one customer during the first quarter of 2025. This customer was a part of the Hometown Bancorporation, Ltd. acquisition during 2023, and the charged-off balances have had a specific allowance related to them since the initial recording of this acquisition.
Noninterest income was $6.6 million for the first quarter of 2025, compared to $4.4 million for the first quarter of 2024. Service charges increased $0.4 million, or 23.1%, over the prior-year first quarter, as the Bank continues to benefit from a renegotiated vendor incentive program related to the Bank's credit and debit card payments processing. Ansay & Associates, LLC, in which the Bank has a 40.0% interest, had a strong first quarter of 2025 with income provided to the Bank up $0.2 million, or 20.6%, from the prior year first quarter. The Bank experienced a positive valuation adjustment to its mortgage servicing rights totaling $0.2 million during the first quarter of 2025, which compared favorably to a negative valuation adjustment of $0.3 million during the first quarter of 2024. Finally, the Bank received a $2.3 million death benefit related to its bank-owned life insurance portfolio. The underlying policies had a cash value of $1.3 million, leading to a gain of $1.0 million which is recorded in other noninterest income.
Noninterest expense was $20.6 million in the first quarter of 2025, compared to $20.3 million during the first quarter of 2024. Personnel expense, which is typically elevated in the first quarter of each year, was relatively consistent year-over-year as continued efficiency improvements in some of the Bank's newer markets offset inflationary impacts to overall wages. While data processing and outside service fee expenses were also consistent year-over-year, they declined from the previous several quarters as costs related to special projects in those quarters have mostly been completed. Finally, amortization of the Bank's core deposit intangible assets continue to decline as time elapses from the Bank's most recent acquisition. These intangible assets are amortized by an accelerated method which creates the most expense in years immediately following the transaction date.
The comparability of year-over-year income tax expense was affected by a provision enacted in the Bank's home state during 2023 which offered an income tax exclusion on certain commercial and agricultural loans to borrowers who reside or are located in the state of Wisconsin. While Wisconsin's governor signed this provision on July 5, 2023, rules related to qualifying loans under it were not finalized until the first quarter of 2024. Based on these final rules, a benefit of $1.3 million was recorded to income tax expense during the first quarter of 2024 as a refinement to provisions for income taxes from 2023, reducing the Bank's effective tax rate to 10.5% for that quarter. For the final three quarters of 2024 the Bank's effective tax rate fluctuated between 19.0% and 20.0%. For the first quarter of 2025 the Bank's effective rate, which came in at 17.5%, benefited from the aforementioned death benefit related to bank-owned life insurance, which was exempt from taxation.
Balance Sheet
Total assets were $4.51 billion at March 31, 2025, an increase of $11.4 million from December 31, 2024, and $406.6 million higher than March 31, 2024.
Total loans were $3.55 billion at March 31, 2025, up $30.9 million from December 31, 2024, and up $164.7 million from March 31, 2024. Loans grew by an annualized rate of 3.6% during the first quarter, a seasonally low loan growth quarter in most years.
Total deposits, nearly all of which remain core deposits, were $3.67 billion at March 31, 2025, up $13.1 million from December 31, 2024, and up $258.2 million from March 31, 2024. Noninterest-bearing demand deposits comprised 27.4% of the Bank's total deposits at March 31, 2025, compared to 29.0% at March 31, 2024, as the Bank continues to see a shift in its deposit portfolio toward pre-2020 levels of noninterest-bearing balances, prior to the influx of liquidity into financial markets during 2020 and 2021.
Asset Quality
Nonperforming assets at March 31, 2025 totaled $7.6 million, down from $9.2 million and $12.5 million at the end of the fourth and first quarters of 2024, respectively. Over half of the decline in nonperforming assets during the most recent quarter related to the aforementioned $0.8 million loan charge-off. Nonperforming assets to total assets ended the first quarter of 2025 at 0.17%, down from 0.21% at the end of the prior quarter and 0.31% at the end of the prior-year first quarter.
Capital Position
Stockholders' equity totaled $648.4 million at March 31, 2025, an increase of $8.7 million from December 31, 2024, and up $39.1 million from March 31, 2024. Dividends totaling $4.5 million and repurchases of BFC common stock totaling $6.4 million were more than offset by earnings of $18.2 million during the quarter. The Bank's book value per common share totaled $65.02 at March 31, 2025 compared to $63.89 at December 31, 2024 and $60.16 at March 31, 2024. Tangible book value per common share (non-GAAP) totaled $45.46 at March 31, 2025 compared to $44.28 at December 31, 2024 and $40.35 at March 31, 2024.
Dividend Declaration
Bank First's Board of Directors approved a quarterly cash dividend of $0.45 per common share, payable on July 9, 2025, to shareholders of record as of June 25, 2025.
Bank First Corporation provides financial services through its subsidiary, Bank First, N.A., which was incorporated in 1894. Bank First offers loan, deposit, and treasury management products at its 26 banking locations in Wisconsin. The Bank has grown through both acquisitions and de novo branch expansion. The Bank employs approximately 362 full-time equivalent staff and has assets of approximately $4.5 billion. Insurance services are available through its bond with Ansay & Associates, LLC. Trust, investment advisory, and other financial services are offered in collaboration with several regional partners. Further information about Bank First Corporation is available by clicking the Shareholder Services tab at www.bankfirst.com.
For further information, contact:
Kevin M LeMahieu, Chief Financial Officer
Phone: (920) 652-3200 / [email protected]
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SOURCE Bank First Corporation