Bank First Reports Q1 EPS Decline, Sharp Rise in Nonperforming Loans, and Further Dividend Cut
Summary
Bank First Corp reported a decline in Q1 EPS despite higher net income, driven by increased share count from its recent Centre acquisition. The company also saw a significant rise in nonperforming loans and announced a further reduction in its quarterly dividend to $0.50 per share.
Key Events
-
Q1 EPS Declined Year-Over-Year
Basic earnings per share decreased to $1.78 in Q1 2026 from $1.82 in Q1 2025, despite a 9.6% increase in net income, primarily due to a higher share count following the Centre acquisition.
-
Nonperforming Loans Surged by 197%
Nonperforming loans increased significantly by 197.2% to $26.89 million at March 31, 2026, from $9.05 million at December 31, 2025, attributed to the deterioration of one customer relationship.
-
Quarterly Dividend Further Reduced
The company declared a quarterly cash dividend of $0.50 per share for Q1 2026, which is a further reduction from the $0.55 per share announced in April 2026 and the $0.45 per share in Q1 2025.
-
Acquisition Drove Balance Sheet Growth
Total assets grew by 34.7% to $6.07 billion, and total deposits increased by 37.6% to $5.09 billion, largely due to the Centre 1 Bancorp acquisition completed on January 1, 2026.
Analysis
Bank First Corp's Q1 2026 results show significant growth in assets, loans, and deposits, primarily driven by the Centre 1 Bancorp acquisition. However, this growth did not prevent a decline in EPS due to the increased share count. More critically, the company reported a nearly 200% surge in nonperforming loans, indicating a notable deterioration in credit quality linked to a specific customer. Furthermore, the quarterly dividend was reduced to $0.50 per share, a further cut from the $0.55 per share announced just last month. This combination of declining EPS, rising credit risk, and an unexpected, deeper dividend cut presents a negative outlook for investors.
At the time of this filing, BFC was trading at $145.00 on NASDAQ in the Finance sector, with a market capitalization of approximately $1.6B. The 52-week trading range was $109.11 to $153.00. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.