Bank First’s $0.45 Dividend Boost Signals Strong Financial Momentum Ahead
27min read Bank First Corporation (BFC) has announced a $0.45 quarterly dividend, a 28.6% increase from the $0.35 per share paid in the first quarter of 2024. This marks the latest step in a streak of dividend growth that has seen BFC’s annual dividend rise from $1.15 in 2023 to an estimated $1.60 in 2025, fueled by robust financial performance. The decision underscores management’s confidence in the bank’s ability to sustain profitability amid a competitive landscape, positioning BFC as a compelling income investment.
A Financial Turnaround in Motion
The dividend hike is backed by strong fundamentals in BFC’s first-quarter 2025 results. Net income surged to $18.2 million ($1.82 per share), a 20.5% year-over-year jump, driven by $36.5 million in net interest income (NII)—up $3.2 million from the prior year. The bank’s net interest margin (NIM) held steady at 3.65%, reflecting disciplined loan pricing and cost management. Meanwhile, total assets grew to $4.51 billion, a 9.7% increase from Q1 2024, with loans climbing to $3.55 billion and deposits rising to $3.67 billion.
Asset quality also improved, with nonperforming assets (NPAs) dropping 39% year-over-year to $7.6 million—just 0.17% of total assets—a sign of prudent risk management. This stability allowed BFC to boost its tangible book value per share by 12.7% annually, reaching $45.46.
Dividend Sustainability: The Numbers
BFC’s dividend payout ratio of 25.5% in 2024 leaves ample room for further increases. With a forward dividend yield of 1.69% as of April 2025, the stock offers income investors a solid return, especially when paired with its projected 20.84% 3-year compound annual growth rate (CAGR) for dividends.
The dividend declaration also aligns with BFC’s long-term strategy of rewarding shareholders while maintaining a conservative capital structure. The bank’s $648.4 million in stockholders’ equity and stable noninterest expenses reflect a disciplined approach to growth.
Timing the Dividend Capture
Investors seeking to participate in BFC’s dividend must act strategically. The $0.45 dividend will be paid on July 9, 2025, to shareholders of record as of June 25, 2025. The ex-dividend date is June 24, 2025, meaning shares purchased by the close of that day will qualify for the payout.
For dividend capture strategies, investors could buy shares ahead of the ex-date and sell shortly after to lock in the income. BFC’s historical ex-dividend impact—typically a price dip on the ex-date—means the stock could rebound quickly. A similar strategy for the prior dividend (payable October 2024) yielded an estimated 0.48% return on cost within a week, as detailed in BFC’s investor materials.
Risks and Considerations
While BFC’s fundamentals are strong, risks remain. Elevated interest rates could compress NIMs further if deposit costs outpace loan yields, though BFC’s 27.4% noninterest-bearing deposits provide a buffer. Additionally, Wisconsin’s tax environment, which contributed to a 17.5% effective tax rate in Q1 2025, could shift with regulatory changes.
Conclusion: A Bank to Watch
Bank First’s $0.45 dividend is more than a payout—it’s a vote of confidence in its expanding franchise. With a 20.5% net income growth rate, a 39% reduction in NPAs, and a 12.7% annualized rise in tangible book value, BFC is well-positioned to sustain its dividend trajectory. The stock’s 1.69% yield and 20.84% dividend CAGR make it a standout in a sector where many banks are grappling with margin pressures.
For income investors, BFC’s upcoming dividend offers a clear entry point before the ex-date on June 24, 2025. The bank’s blend of prudent financial management, geographic focus in the Midwest, and consistent earnings growth suggests this dividend streak has legs—and could make BFC a cornerstone holding for years to come.
