BFC Stock Forecast & Price Target

Bank First Corp is showing a positive financial trajectory, evidenced by a 12% increase in tangible book value (TBV) per share to $40.30 and a notable operating return on assets (ROA) of 1.4%, coupled with a return on tangible common equity (ROTCE) of 14.3% in the fourth quarter of 2023. The company's net interest margin (NIM) is projected to improve slightly, alongside an expected rise in higher-yielding loan growth, specifically in the mid-single digit loan category, which is anticipated to offset rising funding costs. Additionally, Bank First's strategic stake in Ansay & Associates positions it for enhanced organic revenue growth as the insurance business expands, further supporting a favorable outlook.

Bank First Corp has reported an efficiency ratio of 51%, which exceeds the expected range of 47%-48%, indicating higher operational costs relative to revenue. The core net interest margin (NIM) has also experienced compression, increasing by only 1 basis point to 3.50%, while net interest income (NII) fell short of forecasts by 2%, driven by a 1% decline in end-of-period loans attributed to an intentional reduction of lower-yielding commercial real estate loans. Additionally, the company faces various risks, including slower-than-expected growth in loans, core deposits, and fee income, along with concerns about credit quality, elevated operating expenses, and challenges related to mergers and acquisitions.