Bank First Corp 2026 Q1 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended March 31, 2026. Bank First Corp (BFC) is a Wisconsin-based bank holding company. The reporting period is significantly impacted by the acquisition of Centre 1 Bancorp, Inc. (Centre), which closed on January 1, 2026. The merger added 11 branches in Wisconsin and Illinois, expanding the company's footprint. The financial statements reflect the combined entity's operations for the first quarter of 2026.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 | Change |
|---|---|---|---|
| Net Income | $19.99 million | $18.24 million | +$1.75 million |
| Earnings Per Share (Diluted) | $1.78 | $1.82 | -$0.04 |
| Total Assets | $6.07 billion | $4.51 billion (Dec 2025) | +$1.56 billion |
| Total Loans | $4.52 billion | $3.60 billion (Dec 2025) | +$911 million |
| Total Deposits | $5.09 billion | $3.70 billion (Dec 2025) | +$1.39 billion |
| Net Interest Income | $53.22 million | $36.54 million | +$16.68 million |
| Noninterest Income | $10.53 million | $6.59 million | +$3.94 million |
| Noninterest Expense | $39.06 million | $20.60 million | +$18.46 million |
| Allowance for Credit Losses (ACL) | $57.07 million | $43.75 million (Q1 2025) | +$13.32 million |
| Stockholders' Equity | $819.85 million | $643.84 million (Dec 2025) | +$176.01 million |
Material Changes vs. Prior Period
- Acquisition Impact: The Centre acquisition drove a 34.7% increase in total assets and a 25.3% increase in loans. The transaction added approximately $1.0 billion in loans and $1.38 billion in deposits.
- Revenue Growth: Net interest income rose 45.6% year-over-year due to increased asset volume. Noninterest income increased 60%, driven by higher service charges, loan servicing income, and the addition of a Trust and Wealth Management business line ($1.58 million revenue).
- Expense Increase: Noninterest expenses nearly doubled (90% increase) primarily due to the integration of Centre operations, including higher personnel costs, data processing fees, and amortization of a new $31.9 million core deposit intangible.
- Provision for Credit Losses: The company recorded $0 provision for credit losses in Q1 2026, compared to $0.4 million in Q1 2025. The ACL balance increased significantly due to the acquisition of Centre's loan portfolio, which required a $12.8 million allowance addition.
- Nonperforming Assets: Nonperforming loans increased to $26.89 million (0.60% of total loans) from $6.81 million in Q1 2025, largely due to the inclusion of Centre's portfolio and the deterioration of one specific customer relationship.
Guidance, Outlook, and Risks
- Integration: The company expects to complete core system consolidation and rebranding of acquired branches in the second quarter of 2026.
- Capital Position: The Bank remains "well-capitalized" under regulatory standards. Total capital ratio was 12.90% and Tier 1 capital ratio was 11.54% as of March 31, 2026.
- Interest Rate Risk: The company maintains an asset-sensitive position. Simulations indicate that a 200 basis point increase in rates would result in a 2.5% decrease in net interest income, while a 100 basis point decrease would result in a 1.1% decrease.
- Risks: Key risks include the successful integration of Centre, potential credit deterioration in the acquired portfolio, and general economic uncertainty affecting loan performance. The company noted increased qualitative adjustments to loan pools due to geopolitical and economic uncertainty.
Investor Verification Checklist
- Acquisition Accounting: Verify the provisional nature of the purchase accounting adjustments for Centre, which may be adjusted in subsequent quarters.
- Expense Run-Rate: Assess whether the elevated noninterest expenses (specifically personnel and amortization) are sustainable or if cost synergies will materialize in future quarters.
- Credit Quality Trends: Monitor the specific customer relationship cited as the cause for increased nonaccrual loans and the performance of the acquired Centre loan portfolio.
- Dividend Policy: Note the increase in quarterly dividends to $0.50 per share from $0.45 in the prior year.
- Stock Repurchases: Review the ongoing share repurchase program, which had $182,982 shares remaining available as of March 31, 2026.