COLUMBUS, Miss., Oct. 29, 2025 /PRNewswire/ — BankFirst Capital Corporation (OTCQX: BFCC) (“BankFirst” or the “Company”), parent company of BankFirst Financial Services, Macon, Mississippi (the “Bank”), reported net income of $5.20 million, or $0.83 per common share, for the third quarter of 2025, compared to net income of $6.88 million, or $1.07 per common share, for the second quarter of 2025, and compared to net income of $6.36 million, or $0.97 per common share, for the third quarter of 2024. The Company also reported net income for the nine months ended September 30, 2025 of $18.5 million, or $2.88 per share, compared to net income of $17.9 million, or $2.99 per share, for the nine months ended September 30, 2024.

Third Quarter 2025 Highlights:

• As previously announced, on July 1, 2025, the Company completed its acquisition of The Magnolia State Corporation (“Magnolia”), parent company of Magnolia State Bank, Bay Springs, Mississippi (“Magnolia Bank“) for all cash consideration (the “Magnolia Acquisition”). On June 30, 2025, Magnolia Bank had total assets of $465.61 million, total loans of $358.13 million, and total deposits of $414.51 million. The Company recorded a $4.14 million provision for credit loss related to the acquisition of Magnolia. The Magnolia Acquisition resulted in the Bank having 52 locations serving Mississippi and Alabama, with total assets of approximately $3.32 billion, total loans of approximately $2.20 billion and total deposits of approximately $2.80 billion as of July 1, 2025.
• Net income totaled $5.20 million, or $0.83 per common share, in the third quarter of 2025 compared to $6.36 million, or $0.97 per common share, in the third quarter of 2024. Excluding the impact of the $4.14 million provision made in connection with the Magnolia Acquisition, the Company’s net income would have totaled approximately $8.3 million, or $1.39 per common share, in the third quarter of 2025.
• Net interest income totaled $28.82 million in the third quarter of 2025 compared to $21.21 million in the third quarter of 2024.
• Total assets increased 17% to $3.34 billion at September 30, 2025 from $2.80 billion at September 30, 2024.
• Total gross loans equaled $2.20 billion at September 30, 2025 which was an increase of 20% from $1.84 billion at September 30, 2024.
• Total deposits increased 21% to $2.84 billion at September 30, 2025 from $2.35 billion at September 30, 2024.
• Credit quality remains strong with the ratio of non-performing assets (excluding restructured loans) to total assets equal to 0.46% as of September 30, 2025 compared to 0.47% September 30, 2024.

Recent Developments

• As previously reported, on May 21, 2025, the Company’s Board of Directors authorized a stock repurchase program pursuant to which the Company may repurchase up to $10.0 million of the outstanding shares of the Company’s common stock from time to time through various means, including open market purchases or privately negotiated transactions (the “Stock Repurchase Program”). The Stock Repurchase Program will expire on Thursday, May 21, 2026, subject to the earlier suspension, termination or extension by the Company’s Board of Directors, in its sole discretion and without prior notice, or until such time that the funds designated for the Stock Repurchase Program are depleted. During the third quarter of 2025, the Company repurchased 23,000 shares under the Stock Repurchase Program.
• As previously disclosed, the Company closed on the issuance of $175.00 million of senior perpetual noncumulative preferred stock (the “Senior Preferred”) to the U.S. Department of the Treasury (“Treasury”) pursuant to the Emergency Capital Investment Program (“ECIP”) in April 2022 and assumed an additional $43.57 million of outstanding Senior Preferred through the Company’s acquisition of Mechanics Banc Holding Company, which was effective on January 1, 2023. In addition, the Company assumed an additional $30.0 million of outstanding subordinated note due 2052 (the “Magnolia ECIP Subordinated Note”) pursuant to the Magnolia Acquisition, which was effective on July 1, 2025. The Senior Preferred issued to Treasury pays non-cumulative dividends, payable quarterly in arrears on March 15, June 15, September 15 and December 15 of each year beginning on the second dividend payment date after the two-year anniversary of the date of issuance. The dividend rate paid on the Senior Preferred adjusts annually based on certain measurements of the Company’s extensions of credit to minority, rural, and urban low-income and underserved communities and low- and moderate-income borrowers. The Company began paying a quarterly dividend to Treasury on June 15, 2024 and the Company paid its sixth consecutive quarterly dividend to Treasury in an amount equal to $683 thousand on September 15, 2025. The Company also paid interest on the Magnolia ECIP Subordinated Note to Treasury in the amount equal to $94 thousand on September 15, 2025. Following the payment of the interest on the Magnolia ECIP Subordinated Note on September 15, 2025, the Company and the Treasury completed the exchange of the Magnolia ECIP Subordinated Note for an equal amount of Senior Preferred. As of September 30, 2025, the Company has $248.57 million of outstanding Senior Preferred issued to and held by Treasury under ECIP.
• As previously disclosed, the Company entered into an ECIP Securities Purchase Option Agreement (the “ECIP Option Agreement”) with the Treasury, pursuant to which Treasury granted to the Company an option to purchase all of the Senior Preferred. The purchase option may not be exercised unless and until at least one of the following “Threshold Conditions” defined under the Option Agreement has been met: (1) over any sixteen consecutive quarters, an average of at least 60% of the Company’s Total Originations, as defined in the ECIP Disposition Policy promulgated by the Treasury (the “Policy”), qualifies as “Deep Impact Lending,” as defined pursuant to the Policy (the “Deep Impact Condition”); (2) over any twenty-four consecutive quarters, an average of at least 85% of the Company’s Total Originations qualifies as “Qualified Lending,” as defined pursuant to the Policy (the “Qualified Lending Condition”); or (3) the Senior Preferred has a dividend rate of no more than 0.5% at each of six consecutive Reset Dates, as defined pursuant to the Policy. The earliest possible date by which a Threshold Condition may be met is June 30, 2026. As of September 30, 2025, the Company has met the Qualified Lending Condition for the past 14 consecutive quarters. Assuming the Company continues to satisfy the Qualified Lending Condition, as well as complying with the other ECIP program requirements and completing the necessary ECIP Option Agreement closing conditions, the Company may exercise its option to repurchase the Senior Preferred as early as the second quarter of 2028. The Company cautions readers that no assurances can be made regarding (i) the Company’s continued satisfaction of any of the Threshold Conditions in future periods, and (ii) the continued availability of the purchase option under the ECIP Option Agreement or the Policy in future periods due to external conditions or factors beyond the Company’s control. Furthermore, the Company’s future willingness or ability to exercise its option to repurchase the Senior Preferred is not guaranteed.

CEO Commentary

Moak Griffin, President and Chief Executive Officer of the Company and the Bank, stated, “The third quarter of 2025 was an exciting time for BankFirst, as we formally completed the Magnolia Acquisition effective on July 1, 2025.  We remain focused on completing the core data processing systems conversion in November 2025 and look forward to fully welcoming our new colleagues and customers into the BankFirst family. We are also proud of the strong third quarter financial results that we achieved, highlighted by our net interest margin expansion supported by our increasing loan yields and declining Bank cost of funds.”

Financial Condition and Results of Operations

Total assets were $3.34 billion at September 30, 2025, compared to $2.85 billion at June 30, 2025, and $2.80 billion at September 30, 2024. The increase is in total assets since June 30, 2025 was primarily due to organic loan growth, and the completion of the Magnolia Acquisition effective on July 1, 2025. Total loans outstanding, net of the allowance for credit losses, as of September 30, 2025 totaled $2.17 billion, compared to $1.81 billion as of June 30, 2025 and $1.81 billion as of September 30, 2024.

Total deposits as of September 30, 2025 were $2.84 billion, compared to $2.38 billion at June 30, 2025 and $2.35 billion at September 30, 2024, an increase of 19% and 21%, respectively. Non-interest-bearing deposits were $636.10 million as of September 30, 2025, compared to $514.38 million as of June 30, 2025, an increase of 24%, and $529.5 million as of September 30, 2024, an increase of 21%. The increase in total deposits is primarily due to the completion of the Magnolia Acquisition. Non-interest-bearing deposits represented 22% of total deposits as of September 30, 2025.

The Company’s consolidated cost of funds was 1.93% for the third quarter of 2025, compared to 1.92% for the second quarter of 2025 and 2.04% for the third quarter 2024. Bank-only cost of funds for the third quarter of 2025 was 1.84% compared to 1.87% for the second quarter of 2025 and 2.01% for the third quarter of 2024. The Company’s consolidated cost of funds remained consistent over the past few quarters and the Bank-only cost of funds decreased slightly due to declines in market interest rates in the Bank’s market areas. 

The ratio of loans to deposits was 77.3% as of September 30, 2025, compared to 76.9% as of June 30, 2025 and 77.7% as of September 30, 2024.

Net interest income was $28.82 million for the third quarter of 2025, compared to $23.07 million for the second quarter of 2025 and $21.21 million for the third quarter of 2024. Net interest margin was 4.19% in the third quarter of 2025, an increase from 3.71% in the second quarter of 2025 and an increase from 3.44% in the third quarter of 2024. Yield on interest-earning assets was 6.24% during the third quarter of 2025, compared to 5.57% during the second quarter of 2025 and 5.41% during the third quarter of 2024.  The increase in net interest margin during the third quarter of 2025 was primarily due to the completion of the Magnolia Acquisition and an increase in our total loan balance, which in turn had a positive impact on our overall earning asset yield for the third quarter of 2025.

Noninterest income was $7.12 million for the third quarter of 2025, compared to $7.06 million for the second quarter of 2025, an increase of 1%, and compared to $7.46 million for the third quarter of 2024, a decrease of 5%. Mortgage banking revenue during the third quarter of 2025 was $829 thousand, an increase of $71 thousand, or 9%, from $758 thousand in the second quarter of 2025, and an increase of $11 thousand, or 1%, from $818 thousand in the third quarter of 2024. During the third quarter of 2025, the Bank retained $9.86 million of the $33.02 million in secondary market mortgages originated to hold in-house, compared to $41.81 million secondary market loans originated during the second quarter of 2025, of which $16.48 million were retained to hold-in house, and compared to $37.3 million secondary market loans originated during the third quarter of 2024, of which $3.6 million were retained to hold in-house.

Noninterest expense was $23.65 million for the third quarter of 2025, compared to $20.26 million for the second quarter of 2025 and $20.02 million for the third quarter of 2024.

As of September 30, 2025, tangible common book value per share (non-GAAP) was $22.81. According to OTCQX, there were 283 trades of the Company’s shares of common stock during the third quarter of 2025 for a total of 76,985 shares and for an aggregate price of approximately $3.29 million. The closing price of the Company’s common stock quoted on OTCQX on September 30, 2025 was $46.37 per share. Based on this closing share price, the Company’s market capitalization was $251.92 million as of September 30, 2025.

Credit Quality

The Company recorded a provision for credit losses of $5.71 million during the third quarter of 2025, compared to a provision of $850 thousand during the second quarter of 2025 and a provision of $525 thousand for the third quarter of 2024. Of the $5.71 million provision for credit loss recorded in the third quarter, $4.14 million was recorded for day one provision for credit loss related to the completion of the Magnolia Acquisition. 

The Company recorded $2.18 million of net loan charge-offs in the third quarter of 2025, compared to $341 thousand in the second quarter of 2025 and $944 thousand in the third quarter of 2024.  Approximately $1.34 million, or 61.5%, of the net loan charge-offs during the third quarter of 2025 related to two commercial real estate loans involving a single borrower and approximately $526 thousand, or 24.1%, of the net loan charge-offs during the third quarter of 2025 related to the Bank’s SBA loan portfolio. The ratio of non-performing assets, excluding restructured loans, to total assets was 0.46% for the third quarter of 2025, compared to 0.49% for the second quarter of 2025 and 0.47% for the third quarter of 2024. The ratio of annualized net charge-offs to average loans for the third quarter of 2025 was 0.11% compared to annualized net charge-offs of 0.02% for the second quarter of 2025 and 0.05% for the third quarter of 2024. 

As of September 30, 2025, the allowance for credit losses equaled $27.58 million, compared to $24.05 million as of June 30, 2025, and $23.30 million as of September 30, 2024.  Allowance for credit losses as a percentage of total loans was 1.25% at September 30, 2025, compared to 1.31% at June 30, 2025, and 1.27% at September 30, 2024.  Allowance for credit losses as a percentage of nonperforming loans was 181% at September 30, 2025, compared to 168% at June 30, 2025, and 176% at September 30, 2024. 

The Company continues to closely monitor the ongoing economic uncertainty, especially in the commercial real estate market. Accordingly, additional provisions for credit losses may be necessary in future periods.

Capital Position

Capital Requirements and the Community Bank Leverage Ratio Framework – Pursuant to federal regulations, bank holding companies and banks, like the Company and the Bank, must maintain capital levels commensurate with the level of risk to which they are exposed, including the volume and severity of problem loans. Federal banking regulations implementing the international regulatory capital framework, referred to as the “Basel III Rules,” apply to both depository institutions and (subject to certain exceptions not applicable to the Company) their holding companies. The Basel III Rules also establish a “capital conservation buffer” of 2.5% above the regulatory minimum risk-based capital requirements. The Basel III minimum capital ratios with the full capital conservation buffer are summarized in the table below.

On September 17, 2019, the federal banking agencies jointly finalized a rule intended to simplify the Basel III regulatory capital requirements described above for qualifying community banking organizations that opt into the Community Bank Leverage Ratio (“CBLR”) framework, as required by Section 201 of the Economic Growth, Regulatory Relief, and Consumer Protection Act. The final rule became effective on January 1, 2020, and the CBLR framework became available for banks to use beginning with their March 31, 2020 Call Reports. Under the final rule, if a qualifying community banking organization opts into the CBLR framework and meets all requirements under the framework, it will be considered to have met the “well-capitalized” regulatory capital ratio requirements under the “prompt corrective action” regulations promulgated by the federal banking agencies and will not be required to report or calculate risk-based capital under the Basel III Rules. In order to qualify for the CBLR framework, a community banking organization must have a tier 1 leverage ratio of greater than 9.0%, less than $10 billion in total consolidated assets, and limited amounts of off-balance-sheet exposures and trading assets and liabilities.

The Company and the Bank are qualifying community banking organizations and, on June 15, 2022, the Company and the Bank elected to opt into the CBLR framework. The three months ended September 30, 2025 is the first reporting period for which the Company no longer operates under the Small Bank Holding Company Policy Statement of the Board of Governors of the Federal Reserve System (the “Federal Reserve”), at which time the Company became subject to the Federal Reserve’s consolidated capital requirements. 

By electing to opt into the CBLR framework, the Company and the Bank are not required to report or calculate risk-based capital under the Basel III Rules described above. As of September 30, 2025, the Bank’s bank-only CBLR amounted to 9.97% and the Company’s consolidated CBLR amounted to 10.54%. These levels exceeded the 9.0% minimum CBLR necessary for each of the Company and the Bank to be deemed “well-capitalized.”

Included in shareholders’ equity at September 30, 2025 was an unrealized loss in accumulated other comprehensive income of $6.54 million related to unrealized losses in the Company’s investment securities portfolio primarily due to the continued elevated market interest rates during the period. At September 30, 2025, the composition of the Bank’s investment securities portfolio includes $286.72 million, or 49.41%, classified as available-for-sale, and $293.59 million, or 50.59%, classified as held to maturity. All investments in our investment securities portfolio are expected to mature at par value.

Our investment securities portfolio made up 17.37% of our total assets at September 30, 2025, compared to 19.04% and 20.00% at June 30, 2025 and September 30, 2024, respectively.

Merger and Acquisition Activity

As previously disclosed, the Company completed the Magnolia Acquisition on July 1, 2025 and paid a fixed amount of cash consideration. Although the Company believes that the exact amounts of the purchase accounting adjustments have been finalized, future revisions may be necessary.  The following table presents the estimated impact on certain financial information for the Company (in thousands, except per share data):

 

ABOUT BANKFIRST CAPITAL CORPORATION  

BankFirst Capital Corporation (OTCQX: BFCC) is a registered bank holding company headquartered in Columbus, Mississippi with approximately $3.34 billion in total assets as of September 30, 2025. BankFirst Financial Services, the Company’s wholly-owned banking subsidiary, was founded in 1888 and is locally owned, controlled, and operated. The Bank is headquartered in Macon, Mississippi, and operates additional branch offices in Bay Springs, Coldwater, Columbus, Flowood, Heidelberg, Hattiesburg, Hernando, Independence, Jackson, Laurel, Louin, Madison, Newton, Oxford, Petal, Senatobia, Southaven, Starkville, Taylorsville, Tupelo, Water Valley, and West Point, Mississippi; and Addison, Aliceville, Arley, Carrollton, Curry, Double Springs, Fayette, Gordo, Haleyville, Northport, and Tuscaloosa, Alabama. The Bank also operates four loan production offices in Biloxi and Brookhaven, Mississippi, and in Birmingham and Huntsville, Alabama. BankFirst offers a wide variety of services for businesses and consumers. The Bank also offers internet banking, no-fee ATM access, checking, CD, and money market accounts, merchant services, mortgage loans, remote deposit capture, and more. For more information, visit www.BankFirstfs.com.

NON-GAAP FINANCIAL MEASURES

Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with generally accepted accounting principles in the United States (“GAAP”). These non-GAAP financial measures include tangible book value per share. The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company’s financial position and performance. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures.

We classify a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the United States in our statements of income, balance sheets or statements of cash flows. Not all companies use the same calculation of these measures; therefore, this presentation may not be comparable to other similarly titled measures as presented by other companies.

A reconciliation of non-GAAP financial measures to GAAP financial measures is provided at the end of this press release.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This press release contains, among other things, certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding certain of the Company’s goals and expectations with respect to future events that are subject to various risks and uncertainties, and statements preceded by, followed by, or that include the words “may,” “will,” “could,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “pursuant,” “target,” “continue,” and similar expressions. These statements are based upon the current belief and expectations of the Company’s management team and are subject to significant risks and uncertainties that are subject to change based on various factors (many of which are beyond the Company’s control). Factors that could cause actual results to differ materially from management’s projections, forecasts, estimates and expectations include, but are not limited to: (i) the impact on us or our customers of a decline in general economic conditions and any regulatory responses thereto; (ii) slower economic growth rates or potential recession in the United States and our market areas; (iii) the impacts related to or resulting from uncertainty in the banking industry as a whole; (iv) increased competition for deposits among traditional and nontraditional financial services companies, and related changes in deposit customer behavior; (v) the impact of changes in market interest rates, whether due to a continuation of the elevated interest rate environment or further reductions in interest rates and a resulting decline in net interest income; (vi) the lingering inflationary pressures, and the risk of the resurgence of elevated levels of inflation, in the United States and our market areas; (vii) the uncertain impacts of ongoing quantitative tightening and current and future monetary policies of the Federal Reserve; (viii) changes in unemployment rates in the United States and our market areas; (ix) adverse changes in customer spending, borrowing and savings habits; (x) declines in commercial real estate values and prices; (xi) a deterioration of the credit rating for U.S. long-term sovereign debt or the impact of uncertain or changing political conditions, including federal government shutdowns and uncertainty regarding United States fiscal debt, deficit and budget matters; (xii) cyber incidents or other failures, disruptions or breaches of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber-attacks; (xiii) severe weather, natural disasters, acts of war or terrorism, geopolitical instability or other external events, including as a result of in the policies of the current U.S. presidential administration or Congress; (xiv) the impact of tariffs, sanctions and other trade policies of the U.S. and its global trading counterparts and the resulting impact on the Company and its customers; (xv) the maintenance and development of well-established and valued client relationships and referral source relationships; (xvi) acquisition or loss of key production personnel; (xvii) changes in tax laws; (xviii) the risks related to the development, implementation, use and management of emerging technologies, including artificial intelligence and machine learnings; (xix) potential costs related to the impacts of climate change; (xx) current or future litigation, regulatory examinations or other legal and/or regulatory actions; (xxi) risks related to the Company’s acquisition of Magnolia and acquisitions generally, including disruption to current plans and operations; (xxiii) our ability to recognize the expected benefits and synergies of our completed acquisitions; and (xxiv) our ability to successfully complete the conversion of the core data processing systems of Magnolia Bank into the core data processing system of the Bank. These forward-looking statements are based on current information and/or management’s good faith belief as to future events. Although the Company believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. The inclusion of this forward-looking information should not be construed as a representation by the Company or any person that the future events, plans or expectations contemplated by the Company will be achieved. All subsequent written and oral forward-looking statements attributable to the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. The forward-looking statements are made as of the date of this press release. The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law. All forward-looking statements, express or implied, included in the press release are qualified in their entirety by this cautionary statement.

AVAILABLE INFORMATION

The Company maintains an Internet web site at www.BankFirstfs.com/about/investor-relations. The Company makes available, free of charge, on its web site the Company’s annual reports, quarterly earnings reports, and other press releases. In addition, the OTC Markets Group maintains an Internet site that contains reports, proxy and information statements, and other information regarding the Company (at www.otcmarkets.com/stock/BFCC/overview).

The Company routinely posts important information for investors on its web site (under www.BankFirstfs.com and, more specifically, under the Investor Relations tab at www.BankFirstfs.com/about/investor-relations). The Company intends to use its web site as a means of disclosing material non-public information and for complying with its disclosure obligations under the OTC Markets Group OTCQX Rules for U.S. Banks. Accordingly, investors should monitor the Company’s web site, in addition to following the Company’s press releases, OTC filings, public conference calls, presentations and webcasts.

The information contained on, or that may be accessed through, the Company’s web site is not incorporated by reference into, and is not a part of, this press release.

Member FDIC

 

 

 

 

 

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SOURCE BankFirst Capital Corporation