Business Context and Reporting Period
Company: Bank First Corporation (BFC)
Filing Type: Form 10-K (Annual Report)
Reporting Period: Fiscal year ended December 31, 2025
Business Overview: Bank First Corporation is a Wisconsin-based bank holding company operating through its wholly-owned subsidiary, Bank First, N.A. The company provides retail and commercial banking services across 38 branches in Wisconsin and Illinois. As of December 31, 2025, the company reported total consolidated assets of $4.51 billion, total loans of $3.60 billion, and total deposits of $3.70 billion.
Key Financial Metrics
| Metric | 2025 | 2024 |
|---|---|---|
| Net Income | $71.5 million | $65.6 million |
| Net Interest Income | $151.7 million | $137.8 million |
| Noninterest Income | $22.2 million | $19.7 million |
| Noninterest Expense | $84.5 million | $78.8 million |
| Net Interest Margin (NIM) | 3.82% | 3.65% |
| Provision for Credit Losses | $1.3 million | ($0.8 million) benefit |
| Return on Average Assets (ROA) | 1.60% | 1.56% |
| Return on Average Equity (ROE) | 11.16% | 10.58% |
| Total Assets | $4.51 billion | $4.50 billion |
| Total Loans | $3.60 billion | $3.52 billion |
| Total Deposits | $3.70 billion | $3.66 billion |
| Stockholders' Equity | $643.8 million | $639.7 million |
Material Changes vs. Prior Period
- Profitability Growth: Net income increased by $5.9 million (9.0%) driven primarily by a $13.9 million increase in net interest income and a $2.5 million increase in noninterest income.
- Net Interest Margin Expansion: NIM improved by 17 basis points to 3.82%, attributed to higher average yields on interest-earning assets (5.56% vs. 5.45%) outpacing the decrease in average rates paid on interest-bearing liabilities (2.54% vs. 2.69%).
- Expense Increases: Noninterest expenses rose by $5.7 million. Key drivers included a $1.9 million increase in occupancy expenses due to branch construction and rebuilding, and $1.5 million in acquisition-related expenses for the Centre 1 Bancorp merger.
- Loan Portfolio Composition: Total loans grew 2.5%. Commercial and Industrial (C&I) loans increased 9.6%, while Construction and Development loans decreased 22.5% as projects migrated to permanent commercial real estate financing.
- Capital Actions: The company repurchased $22.0 million of common stock and paid $52.5 million in dividends during 2025.
Guidance, Outlook, and Risks
Management Commentary and Outlook
Management emphasizes a strategy focused on organic growth, relationship-based banking, and selective acquisitions. The company completed the acquisition of Centre 1 Bancorp, Inc. on January 1, 2026, expanding its footprint and adding trust capabilities. The combined entity is projected to have approximately $6.2 billion in assets. Management anticipates continued strong capital ratios and expects to exceed well-capitalized regulatory standards in 2026.
Key Risks and Contingencies
- Interest Rate Risk: The company faces risks from both rising and falling interest rates. While currently asset-sensitive, a significant reduction in rates could compress net interest margins. The company utilizes hedging and asset-liability management to mitigate this.
- Commercial Real Estate (CRE) Concentration: CRE loans comprise 49.3% of the total loan portfolio. Deterioration in real estate values or borrower cash flows could increase credit losses and require higher allowances.
- Acquisition Integration: Risks associated with the Centre acquisition include integration costs, potential customer attrition, and the diversion of management attention.
- Cybersecurity: The company faces evolving threats including ransomware and AI-driven attacks. While no material incidents were reported in 2025, a breach could result in significant financial and reputational damage.
- Regulatory Environment: Changes in capital requirements, deposit insurance assessments, and fair lending laws could impact operations and profitability.
Investor Verification Checklist
- Acquisition Integration Progress: Verify the timeline and cost realization of the Centre 1 Bancorp merger integration, scheduled for completion in Q2 2026.
- CRE Loan Quality: Monitor nonperforming asset ratios and specific reserves within the Commercial Real Estate portfolio, which represents nearly half of total loans.
- Deposit Stability: Assess the stability of noninterest-bearing deposits ($1.00 billion) versus interest-bearing deposits in a competitive rate environment.
- Capital Ratios: Confirm that the company maintains capital ratios well above the "well-capitalized" thresholds (CET1 > 6.5%, Tier 1 > 8.0%, Total > 10.0%) post-acquisition.
- Expense Management: Track whether occupancy and acquisition-related expenses normalize in 2026 to support sustained net income growth.