Bank First Surges on Acquisition, Boosting Dividends Amid Integration

MANITOWOC, WI – April 16, 2026 – Bank First Corporation (NASDAQ: BFC) today announced a strong first quarter for 2026, driven by the landmark acquisition of Centre 1 Bancorp, Inc. The financial institution reported a net income of $20.0 million and signaled robust confidence by declaring a significant 22.2% year-over-year increase in its quarterly cash dividend. The results paint a picture of a bank in a successful but complex phase of strategic expansion, balancing impressive growth with the operational realities of a major merger.

While reported earnings stood at $1.78 per common share, the bank highlighted an adjusted net income of $25.1 million, or $2.24 per share, when excluding $6.5 million in one-time acquisition expenses. This adjusted figure provides a clearer view of the core earning power of the newly combined entity, demonstrating the immediate financial uplift from the deal.

A Transformative Acquisition Fuels Growth

The quarter's performance was overwhelmingly shaped by the successful acquisition of Centre 1 Bancorp, parent company of The First National Bank and Trust Company (FNBT), which closed on January 1, 2026. The all-stock transaction, valued at approximately $174.3 million, was a pivotal moment for Bank First, increasing its total assets by 33% to $6.07 billion. The move added Centre's $1.48 billion in assets, $981.5 million in loans, and $1.38 billion in deposits to Bank First's balance sheet.

This acquisition marked the company's first strategic foray outside of Wisconsin, establishing a new "Stateline Region" in southern Wisconsin and northern Illinois. Mike Molepske, Chairman and CEO of Bank First, emphasized the strategic importance of the move. "This acquisition marked another milestone in Bank First's long-term growth strategy," he stated in the earnings release. "We are pleased to welcome their customers, employees, and shareholders into the Bank First family, and we are excited to expand our capabilities by adding experienced Trust and Wealth Management, Fraud, and Treasury Management teams."

The integration of these new services is already bearing fruit. The bank reported that its new Trust and Wealth Management division, a direct result of the acquisition, contributed $1.6 million in noninterest income during the first quarter. This diversification of revenue streams beyond traditional lending is a key benefit that analysts see as valuable in varying interest rate environments.

Dissecting the Financial Performance

The sheer scale of the Centre acquisition reverberated through every line of Bank First's financial statements. Net interest income soared to $53.2 million for the quarter, a substantial increase from $36.5 million in the prior-year period. This was bolstered by purchase accounting adjustments related to the merger, which added $2.7 million to net interest income. The bank's net interest margin (NIM) remained strong at 3.96%.

Noninterest income more than doubled from the previous quarter to $10.5 million, largely driven by the new wealth management services and a significant jump in service charge income to $4.7 million. However, growth came with costs. Noninterest expenses rose to $39.1 million, up from $20.6 million in the first quarter of 2025. The bank attributed the majority of this increase to the $6.5 million in acquisition-related expenses, including personnel, data processing, and outside service fees. These costs are expected to moderate as the integration progresses.

Operational integration is moving forward, with a full system and brand conversion for all former FNBT locations scheduled for May 2026. Until then, some operational redundancies remain, meaning the full cost-saving synergies of the merger are yet to be realized.

Navigating Post-Merger Headwinds

While the growth story is compelling, the report also highlighted the inherent challenges of integrating a large financial institution. Bank First's nonperforming assets (NPAs) saw a significant increase, rising to $30.0 million, or 0.50% of total assets, compared to just $9.0 million, or 0.20%, at the end of 2025.

This uptick was primarily attributed to two factors: a portfolio of nonaccrual loans and other real estate inherited from the Centre acquisition, and a single, unrelated credit relationship totaling $12.9 million that was moved to nonaccrual status during the quarter. In response, the bank's allowance for credit losses was increased by $12.8 million through acquisition accounting. Bank First also noted it has been actively managing the acquired loan portfolio, transitioning out of certain balances that did not align with its established lending philosophy.

While the sharp increase in NPAs is a point of caution, analysts have described it as a manageable "near-term headwind." The bank's strong capital position, with tangible book value per share growing 9.1% on an annualized basis during the quarter, provides a substantial buffer to absorb potential credit normalization. The acquisition itself was structured to be slightly accretive to tangible book value at closing, strengthening the bank's financial foundation from day one.

Shareholder Confidence and Community Reshaping

Perhaps the strongest signal of the board's confidence in the future is the dividend declaration. The new quarterly dividend of $0.55 per share represents a 10.0% increase over the prior quarter and a 22.2% jump from the same period last year. This move rewards shareholders and reflects management's belief in the long-term earnings power of the expanded enterprise.

Beyond the balance sheet, the acquisition is reshaping the physical banking landscape in the new Stateline Region. As part of its integration strategy, Bank First closed six overlapping branches upon the deal's completion. This consolidation is being paired with forward-looking investment. The company announced plans to build new, modern offices in Walworth, Delavan, and Monroe, which will ultimately allow for the consolidation of two additional branches. This strategic optimization of its physical footprint is designed to strengthen its long-term presence in high-potential markets while improving operational efficiency. To ensure leadership continuity and a smooth transition, Steve Eldred, the former Chairman and CEO of Centre, has also joined the Board of Directors of both Bank First Corporation and its banking subsidiary.