What caused BFC's Q1 earnings to fall short?

Bank First Corporation (BFC) experienced a decline in earnings for the first quarter of 2024, with net income dropping to $17.5 million and earnings per common share decreasing to $1.75 compared to the previous quarter. This shortfall in earnings can be attributed to several factors:

1. **Interest Income**: The decrease in interest income from $19.3 million to $17.5 million was a significant factor contributing to the decline in net income. This reduction suggests a decrease in the interest earned on assets such as loans and securities.
2. **Provision for Loan Losses**: The provision for loan losses increased to $1.5 million from $1 million, indicating a higher anticipated risk of loan defaults or impairments. This increase reflects a more cautious assessment of credit risk by the bank, which can lead to higher provisions for potential losses.
3. **Non-Interest Expenses**: The bank also saw an increase in non-interest expenses, rising to $10.3 million from $9.5 million. This rise could be due to higher operational costs, administrative expenses, or other non-interest costs.
4. **Efficiency Ratio**: The efficiency ratio, which measures a bank's overhead costs as a percentage of total revenues, worsened to 36.9% from 35.5%. A higher efficiency ratio indicates increased costs relative to revenues, which can negatively impact profitability.

In summary, BFC's Q1 earnings fell short primarily due to a decrease in interest income, increased provision for loan losses, higher non-interest expenses, and a worse efficiency ratio. These factors combined to reduce the bank's net income and earnings per common share.

|code|Ticker|Name|Date|Revenue Surprise|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|BFC|BFC.O|Bank First|2024 Q1|-2100000|3.7746E7|186|
|BFC|BFC.O|Bank First|2024 Q2|-66000|3.8884E7|186|
|BFC|BFC.O|Bank First|2024 Q3|1176000|4.0776E7|186|
|BFC|BFC.O|Bank First|2024 Q4|-276000|4.0074E7|186|