PART 1: Performance Analysis
Bank First Corp has shown steady growth throughout the years with increasing net income and total consolidated assets. As of December 31, 2022, the company reported total consolidated assets of $3.66 billion, a 12.7% increase from the previous year. Total loans increased by 13.4% and total deposits increased by 13.3%. The company’s net income increased to $72.5 million in 2022, which is a year-over-year increase of 23.8%. The increase in net income is mainly attributed to higher net interest income and a decrease in the provision for loan losses.
The company has also expanded its business by acquiring Timberwood, Denmark Bancshares, and Hometown Bancorp. These acquisitions help increase the company’s presence in Wisconsin and expand its operations by adding more locations to its banking network. The company states that it intends to continue this growth strategy by seeking additional acquisition opportunities.
Bank First Corp has a strong asset base with a low level of non-performing assets, indicating a sound loan portfolio. Its capital and liquidity ratios are above the regulatory requirements, which will allow the company to pursue its growth strategy.
PART 2: Forward Looking Analysis
The company’s management expects continued growth in 2023, driven by higher loan growth, expansion through acquisitions, and growth in their digital banking platform. The company also plans to increase its presence in the Milwaukee market by opening additional branches, which is expected to further increase its deposit base.
However, Bank First Corp faces significant competition within the banking industry in Wisconsin, with several large national and regional banks operating in the state. Technology advancements and increased use of digital banking platforms also pose a threat to the company’s traditional banking model.
Despite these challenges, the company’s CEO, Mike Molepske, is optimistic about the future and believes that the company’s strong capital position, asset quality, and commitment to providing excellent customer service will help it remain competitive. In the CEO’s own words, “Bank First is well-positioned to capitalize on growth opportunities and to continue our positive momentum in the years ahead.” The company’s expansion strategy through acquisition and expansion in new markets is expected to help mitigate these threats and result in continued growth in the future.
In conclusion, Bank First Corp has shown steady growth and expansion, and its strong capital and liquidity ratios provide a solid foundation for further expansion. However, the company faces competitive pressures from both traditional and digital banking sources. The company's continued expansion strategy and its commitment to sound business principles are expected to help overcome any potential challenges and to enable the company to continue its growth into the future.