Bank First Corp. 10-Q Summary: Q2 2026
Business Context and Reporting Period
This report covers the quarterly period ended June 30, 2026. Bank First Corp. is a Wisconsin-based bank holding company operating primarily in Wisconsin and Illinois. The reporting period is significantly impacted by the acquisition of Centre 1 Bancorp, Inc. (Centre) on January 1, 2026, which expanded the company's footprint and asset base. Additionally, the company announced a proposed merger with PSB Holdings, Inc. (Peoples) on May 19, 2026, expected to close in December 2026.
Key Financial Metrics
| Metric | Q2 2026 (3 Months) | Q2 2025 (3 Months) | YTD 2026 (6 Months) | YTD 2025 (6 Months) |
|---|---|---|---|---|
| Net Income | $24.7 million | $16.9 million | $44.7 million | $35.1 million |
| Earnings Per Share (Diluted) | $2.21 | $1.71 | $3.99 | $3.53 |
| Net Interest Income | $55.0 million | $36.7 million | $108.2 million | $73.2 million |
| Net Interest Margin (Taxable Equivalent) | 4.13% | 3.72% | 4.04% | 3.69% |
| Total Assets (Period End) | $5.95 billion | $4.37 billion | $5.95 billion | $4.37 billion |
| Total Loans (Period End) | $4.52 billion | $3.58 billion | $4.52 billion | $3.58 billion |
| Total Deposits (Period End) | $4.99 billion | $3.60 billion | $4.99 billion | $3.60 billion |
| Allowance for Credit Losses (Loans) | $56.0 million | $44.3 million | $56.0 million | $44.3 million |
| Stockholders' Equity (Period End) | $819.3 million | $612.3 million | $819.3 million | $612.3 million |
Material Changes vs. Prior Period
- Revenue Growth: Net income increased 46% year-over-year for the quarter and 27% year-over-year for the six-month period. This growth is primarily attributed to the scale of operations added by the Centre acquisition.
- Balance Sheet Expansion: Total assets increased by $1.44 billion (32%) compared to December 31, 2025, driven by the acquisition of Centre's assets ($1.58 billion) and liabilities ($1.48 billion).
- Net Interest Margin Expansion: The net interest margin improved to 4.13% in Q2 2026 from 3.72% in Q2 2025. This was aided by higher loan yields and a decline in the cost of funds, despite higher interest-bearing deposit balances.
- Expense Increases: Noninterest expense rose significantly ($34.4 million in Q2 2026 vs. $20.8 million in Q2 2025) due to the integration of Centre, including higher personnel costs, data processing fees, and amortization of intangibles ($2.5 million in Q2 2026 vs. $1.3 million in Q2 2025).
- Provision for Credit Losses: The company recorded no provision for credit losses in Q2 2026 or the first six months of 2026, compared to a $0.2 million provision in Q2 2025. Net charge-offs were $1.0 million for the quarter and $1.2 million for the six months.
Guidance, Outlook, and Risks
- Merger Activity: The company is pursuing a merger with PSB Holdings, Inc. (Peoples), expected to close in Q4 2026. The combined entity would have approximately $7.5 billion in assets. Risks include integration challenges, regulatory approval delays, and potential failure to realize expected synergies.
- Capital Position: The company remains "well-capitalized" under regulatory standards. As of June 30, 2026, the Common Equity Tier 1 (CET1) ratio was 11.19% for the Company and 10.93% for the Bank, well above the 7.0% requirement (including buffer).
- Interest Rate Risk: The company maintains a liability-sensitive position in certain scenarios. Simulations indicate that a 200 basis point increase in rates could decrease net interest income by 1.3%, while a 200 basis point decrease could decrease it by 0.9%.
- Asset Quality: Nonperforming loans increased to $25.5 million (0.56% of total loans) from $13.6 million in the prior year, largely due to the deterioration of a single customer relationship and the inclusion of Centre's portfolio. However, the allowance for credit losses remains robust at 1.24% of total loans.
Investor Verification Checklist
- Merger Integration Costs: Verify the actual run-rate of integration expenses related to the Centre acquisition and the projected timeline for cost synergies.
- Peoples Merger Approval: Monitor regulatory and shareholder approval status for the proposed merger with PSB Holdings, Inc.
- Nonperforming Loan Concentration: Review the specific details of the "single customer relationship" that drove the increase in nonaccrual loans to assess potential future charge-offs.
- Deposit Mix Stability: Analyze the stability of the new deposit base acquired from Centre, particularly the ratio of noninterest-bearing to interest-bearing deposits.
- Intangible Amortization: Track the amortization schedule of the $31.9 million core deposit intangible asset acquired from Centre, which impacts future earnings.