BANKFIRST CAPITAL CORPORATION Reports Third Quarter 2024 Earnings of $6.4 Million

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Oct 28, 2024

PR Newswire

COLUMBUS, Miss., Oct. 28, 2024 /PRNewswire/ -- BankFirst Capital Corporation (OTCQX: BFCC) ("BankFirst" or the "Company"), parent company of BankFirst Financial Services, Macon, Mississippi (the "Bank"), reported net income of $6.4 million, or $0.97 per share, for the third quarter of 2024, compared to net income of $6.5 million, or $1.09 per share, for the second quarter of 2024, and compared to net income of $8.4 million, or $1.55 per share, for the third quarter of 2023.

Third Quarter 2024 Highlights:

  • Net interest income totaled $21.2 million in the third quarter of 2024 compared to $21.6 million in the third quarter of 2023.
  • Total assets increased 2% to $2.8 billion at September 30, 2024 from $2.7 billion at September 30, 2023.
  • Total gross loans increased 3% to $1.84 billion at September 30, 2024 from $1.78 billion at September 30, 2023.
  • Total deposits increased 3% to $2.4 billion at September 30, 2024 from $2.3 billion at September 30, 2023.
  • Available liquidity sources totaled approximately $985.2 million as of September 30, 2024 through (i) available advances from the Federal Home Loan Bank of Dallas ("FHLB"), (ii) the Federal Reserve Bank of St. Louis ("FRB") Discount Window, and (iii) access to funding through several relationships with correspondent banks.
  • Total off-balance sheet liquidity through the IntraFi Insured Cash Sweep program totaled approximately $155.2 million as of September 30, 2024.
  • Credit quality remains strong with non-performing assets (excluding restructured) to total assets of 0.47% as of September 30, 2024 compared to 0.47% September 30, 2023.
  • The Company's wholly-owned banking subsidiary, BankFirst Financial Services (the "Bank"), was named a recipient of a grant award under the Community Development Financial Institution ("CDFI") Bank Enterprise Award Program ("BEA Program") in the amount of $280 thousand. The Bank recognized this award during the third quarter of 2024.

Recent Developments

  • As previously reported, on May 15, 2024, the Board 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 in open market purchases or privately negotiated transactions (the "Stock Repurchase Program"). The Stock Repurchase Program will expire on Wednesday, May 21, 2025, subject to the earlier termination or extension by the Board, 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 2024, the Company repurchased 4,256 shares under the Stock Repurchase Program for an aggregate purchase price of approximately $145 thousand.
  • Finally, as previously disclosed, the Company closed on the issuance of $175.0 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 $43.6 million of outstanding Senior Preferred through the Company's acquisition of Mechanics Banc Holding Company, which was effective on January 1, 2023. The Senior Preferred issued to Treasury will pay 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 to be paid on the Senior Preferred will adjust 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. On September 15, 2024, the Company paid its second quarterly dividend to Treasury in an amount equal to $1.092 million.

CEO Commentary

Moak Griffin, President and Chief Executive Officer of the Company and the Bank, stated, "We are pleased with our third quarter results as we saw continued modest growth of loans and deposits. Our credit quality remains stable as our non-performing assets continue to remain low. Overall, we remain optimistic about the remainder of 2024 and ahead into 2025."

Financial Condition and Results of Operations

Total assets were $2.8 billion at September 30, 2024, compared to $2.8 billion at June 30, 2024 and $2.7 billion at September 30, 2023. Total loans outstanding, net of the allowance for credit losses, as of September 30, 2024 totaled $1.8 billion, compared to $1.8 billion as of June 30, 2024 and $1.8 billion as of September 30, 2023.

Total deposits as of September 30, 2024 were $2.4 billion, compared to $2.3 billion at June 30, 2024 and $2.3 billion at September 30, 2023. Non-interest-bearing deposits were $529.5 million as of September 30, 2024, compared to $537.5 million as of June 30, 2024, a decrease of 1%, and $586.6 million as of September 30, 2023, a decrease of 10%. Non-interest-bearing deposits represented 23% of total deposits as of September 30, 2024.

The Company's consolidated cost of funds was 2.04% for the third quarter of 2024, compared to 2.05% for the second quarter of 2024 and 1.40% for the third quarter 2023. The decrease in the Company's consolidated cost of funds during the third quarter of 2024 compared to the prior periods was primarily due to the continued flattening of market interest rates for deposits across the Bank's market areas and due to the retirement of $7.5 million of the Company's subordinated debt, as previously disclosed in the second quarter of 2024. Bank-only cost of funds for the third quarter of 2024 was 2.02% compared to 1.98% for the second quarter of 2024 and 1.31% for the third quarter of 2023.

The ratio of loans to deposits was 78.0% as of September 30, 2024, compared to 79.3% as of June 30, 2024 and 76.8% as of September 30, 2023.

Net interest income was $21.2 million for the third quarter of 2024, compared to $20.9 million for the second quarter of 2024 and $21.6 million for the third quarter of 2023. Net interest margin was 3.44% in the third quarter of 2024, a decrease from 3.46% in the second quarter of 2024 and a decrease from 3.55% in the third quarter of 2023. Yield on interest-earning assets was 5.41% during the third quarter of 2024, compared to 5.44% during the second quarter of 2024 and 4.90% during the third quarter of 2023.

Noninterest income was $7.4 million for the third quarter of 2024, compared to $7.9 million for the second quarter of 2024, an decrease of 7% and compared to $10.1 million for the third quarter of 2023, an decrease of 26%. The decrease in noninterest income in the second quarter is related to the pre-tax gain of gain of approximately $953.6 thousand on the redemption of $7.5 million in subordinated debentures recognized in the second quarter of 2024. The decrease in noninterest income in the second quarter related to the third quarter in 2023 was due to the recognition of the Equitable Recovery Program grant in the amount of $6.2 million. Mortgage banking revenue during the third quarter of 2024 was $818 thousand, a decrease of $40 thousand, or 5%, from $858 thousand in the second quarter of 2024, and an increase of $14 thousand, or 2%, from $804 thousand in the third quarter of 2023. During the third quarter of 2024, the Bank retained $3.6 million of the $37.3 million in secondary market mortgages originated to hold in-house, compared to $28.6 million secondary market loans originated during the third quarter of 2023, of which $3.1 million were retained to hold in-house.

Noninterest expense was $20.0 million for the third quarter of 2024, compared to $19.7 million for the second quarter of 2024 and $20.0 million for the third quarter of 2023.

As of September 30, 2024, tangible common book value per share (non-GAAP) was $23.97. According to OTCQX, there were 451 trades of the Company's shares of common stock during the third quarter of 2024 for a total of 146,732 shares and for a total price of $5,251,604. The closing price of the Company's common stock quoted on OTCQX on September 30, 2024 was $38.50 per share. Based on this closing share price, the Company's market capitalization was $209.1 million as of September 30, 2024.

Credit Quality

The Company recorded a provision for credit losses of $525 thousand during the third quarter of 2024, compared to a provision of $525 thousand for the second quarter of 2024 and a provision of $875 thousand for the third quarter of 2023. The Company continues to closely monitor the continued economic uncertainty, especially in the commercial real estate market, as discussed below.

The Company recorded $944 thousand of net loan charge-offs in the third quarter of 2024, compared to $1.1 million in the second quarter of 2024 and $413 thousand in the third quarter of 2023. Non-performing assets, excluding restructured loans, to total assets were 0.47% for the third quarter of 2024, compared to 0.41% for the second quarter of 2024 and 0.47% for the third quarter of 2023. Annualized net charge-offs to average loans for the third quarter of 2024 were 0.05% compared to annualized net charge-offs of 0.06% for the second quarter of 2024 and 0.02% for the third quarter of 2023.

As of September 30, 2024, the allowance for credit losses equaled $23.3 million, compared to $23.7 million as of June 30, 2024 and $23.7 million as of September 30, 2023. Allowance for credit losses as a percentage of total loans was 1.27% at September 30, 2024, compared to 1.29% at June 30, 2024 and 1.33% at September 30, 2023. Allowance for credit losses as a percentage of nonperforming loans was 176% at September 30, 2024, compared to 208% at June 30, 2024 and 185% at September 30, 2023.

The Company continues to closely monitor credit quality in light of the continued economic uncertainty due to the prolonged elevated interest rate environment and persistent inflationary pressures in the United States and our market areas. Accordingly, additional provisions for credit losses may be necessary in future periods.

Liquidity and Capital Position

Liquidity – We have a limited reliance on wholesale funding and currently have no brokered deposits. We currently have the capacity to borrow up to approximately $910.5 million from the FHLB, $14.7 million from the FRB Discount Window and an estimated additional $60.0 million in funding through several relationships with correspondent banks.

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.

Basel III
Minimum for
Capital
Adequacy Purposes

Basel III
Additional
Capital
Conservation Buffer

Basel III Ratio
with Capital
Conservation
Buffer

Total Risk-Based Capital (total capital to risk weighted assets)

8.00 %

2.50 %

10.50 %

Tier 1 Risk-Based Capital (tier 1 to risk weighted assets)

6.00 %

2.50 %

8.50 %

Tier 1 Leverage Ratio (tier 1 to average assets)(1)

4.00 %

N/A

4.00 %

Common Equity Tier 1 Risk-Based Capital (CET1 to risk weighted assets)

4.50 %

2.50 %

7.00 %

(1) The capital conservation buffer is not applicable to Tier 1 Leverage Ratio.

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. However, the Company currently operates under the Small Bank Holding Company Policy Statement of the Board of Governors of the Federal Reserve System (the "Federal Reserve") and, therefore, is not currently subject to the Federal Reserve's consolidated capital reporting requirements. Accordingly, the Company's election to opt into the CBLR framework will commence for the first reporting period for which the Company no longer operates under the Federal Reserve's Small Bank Holding Company Policy Statement, at which time the Company will become 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, 2024, the Bank's bank-only CBLR amounted to 11.23%. While the Company is currently not subject to the Federal Reserve's consolidated capital requirements, as discussed above, the Company's consolidated CBLR would have amounted to 12.50% as of September 30, 2024. These levels exceeded the 9.0% minimum CBLR necessary to be deemed "well-capitalized."

Included in shareholders' equity at September 30, 2024 was an unrealized loss in accumulated other comprehensive income of $7.4 million related to the unrealized loss in the Company's investment securities portfolio primarily due to continued elevated market interest rates during the period. At September 30, 2024, the composition of the Bank's investment securities portfolio includes $234 million, or 43%, classified as available-for-sale, and $312 million, or 57%, 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 19.5% of our total assets at September 30, 2024, compared to 20.0% and 20.9% at June 30, 2024 and September 30, 2023, respectively.

ABOUT BANKFIRST CAPITAL CORPORATION

BankFirst Capital Corporation (OTCQX: BFCC) is a registered bank holding company headquartered in Columbus, Mississippi with approximately $2.8 billion in total assets as of September 30, 2024. 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 Coldwater, Columbus, Flowood, Hattiesburg, Hernando, Independence, Jackson, Louin, Madison, Newton, Oxford, Senatobia, Southaven, Starkville, Tupelo, Water Valley, and West Point, Mississippi; and Addison, Aliceville, Arley, Bear Creek, 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: the impact on us or our customers of a decline in general economic conditions and any regulatory responses thereto; potential recession in the United States and our market areas; the impacts related to or resulting from bank failures and any continuation of uncertainty in the banking industry, including the associated impact to the Company and other financial institutions of any regulatory changes or other mitigation efforts taken by government agencies in response thereto; increased competition for deposits and related changes in deposit customer behavior; the impact of changes in market interest rates, whether due to the current elevated interest rate environment or future reductions in interest rates and a resulting decline in net interest income; the resurgence of elevated levels of inflation or inflationary pressures in the United States and our market areas; the uncertain impacts of ongoing quantitative tightening and current and future monetary policies of the Federal Reserve; increases in unemployment rates in the United States and our market areas; declines in commercial real estate values and prices; uncertainty regarding United States fiscal debt, deficit and budget matters; 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; severe weather, natural disasters, acts of war or terrorism, geopolitical instability or other external events; the impact of changes in U.S. presidential administrations or Congress; the maintenance and development of well-established and valued client relationships and referral source relationships; acquisition or loss of key production personnel; changes in tax laws; the risks related to the development, implementation, use and management of emerging technologies, including artificial intelligence and machine learnings; potential increased regulatory requirements and costs related to the transition and physical impacts of climate change; and current or future litigation, regulatory examinations or other legal and/or regulatory actions. 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

BankFirst Capital Corporation
Unaudited Consolidated Balance Sheets
(In Thousands, Except Per Share Data)

September 30

June 30

March 31

December 31

September 30

2024

2024

2024

2023

2023

Assets

Cash and due from banks

$ 105,825

$ 101,285

$ 112,028

$ 51,829

$ 60,454

Interest bearing bank balances

93,784

43,293

64,967

61,264

73,114

Federal funds sold

50

1,350

200

14,500

18,075

Securities available for sale at fair value

234,474

232,819

234,243

235,970

234,392

Securities held to maturity

311,756

317,293

323,523

328,013

332,799

Loans

1,835,311

1,839,640

1,806,925

1,813,168

1,783,089

Allowance for credit losses

(23,301)

(23,720)

(24,332)

(24,084)

(23,684)

Loans, net of allowance for credit losses

1,812,010

1,815,920

1,782,593

1,789,084

1,759,405

Premises and equipment

68,035

67,224

66,586

66,217

64,196

Interest receivable

11,811

11,891

11,831

11,286

10,079

Goodwill

66,966

66,966

66,966

66,966

66,966

Other intangible assets

10,074

10,480

10,885

11,290

11,695

Other

87,312

89,247

87,911

89,375

84,099

Total assets

$ 2,802,097

$ 2,757,768

$ 2,761,733

$ 2,727,769

$ 2,715,274

Liabilities and Stockholders' Equity

Liabilities

Noninterest bearing deposits

$ 529,533

$ 537,515

$ 518,369

$ 545,024

$ 586,301

Interest bearing deposits

1,823,231

1,782,710

1,805,512

1,744,111

1,697,616

Total deposits

2,352,764

2,320,225

2,323,881

2,289,135

2,283,917

Notes payable

5,793

6,330

6,868

7,405

7,943

Subordinated debt

22,142

22,146

29,651

29,635

29,619

Interest payable

7,955

8,137

7,039

6,086

4,418

Other

21,043

18,818

17,887

20,599

25,350

Total liabilities

2,409,697

2,375,656

2,385,326

2,355,332

2,351,247

Stockholders' Equity

Preferred stock

188,680

188,680

188,680

188,680

188,680

Common stock

1,629

1,631

1,633

1,620

1,620

Additional paid-in capital

62,731

62,741

62,396

62,065

61,779

Retained earnings

146,759

141,251

135,561

130,557

128,925

Accumulated other comprehensive income

(7,399)

(12,191)

(11,863)

(10,485)

(16,977)

Total stockholders' equity

392,400

382,112

376,407

372,437

364,027

Total liabilities and stockholders' equity

$ 2,802,097

$ 2,757,768

$ 2,761,733

$ 2,727,769

$ 2,715,274

Common shares outstanding

5,431,551

5,436,106

5,444,930

5,399,972

5,399,367

Book value per common share

$ 37.51

$ 35.58

$ 34.48

$ 34.03

$ 32.48

Tangible book value per common share

$ 23.97

$ 21.34

$ 20.18

$ 19.54

$ 17.91

Securitites held to maturity (fair value)

$ 271,129

$ 264,807

$ 271,724

$ 279,117

$ 264,859

BankFirst Capital Corporation
Unaudited Consolidated Statements of Income
(In Thousands, Except Per Share Data)

For Three Months Ended

For the Nine Months Ended

September

June

September

September

2024

2024

2024

2023

Interest Income

Interest and fees on loans

$ 28,810

$ 28,118

$ 83,274

$ 70,967

Taxable securities

3,336

3,441

10,135

11,051

Tax-exempt securities

514

517

1,551

2,219

Federal funds sold

4

10

26

1,157

Interest bearing bank balances

749

802

2,344

393

Total interest income

33,413

32,888

97,330

85,787

Interest Expense

Deposits

11,748

11,438

33,637

15,804

Short-term borrowings

6

7

14

141

Federal Home Loan Bank advances

-

-

-

358

Other borrowings

445

542

1,558

1,682

Total interest expense

12,199

11,987

35,209

17,985

Net Interest Income

21,214

20,901

62,121

67,802

Provision for Credit Losses

525

525

1,575

1,625

Net Interest Income After Provision for Loan Losses

20,689

20,376

60,546

66,177

Noninterest Income

Service charges on deposit accounts

2,579

2,445

7,503

7,523

Mortgage income

818

858

2,350

1,974

Interchange income

1,370

1,665

4,466

4,124

Net realized gains (losses) on available-for-sale securities

-

(194)

(194)

(1,403)

Gains (losses) on retirement of subordinated debt

-

956

956

Grant Income

280

280

6,197

Other

2,412

2,128

6,602

3,311

Total noninterest income

7,459

7,858

21,963

21,726

Noninterest Expense

Salaries and employee benefits

10,938

11,252

33,250

31,888

Net occupancy expenses

1,285

1,236

3,864

3,920

Equipment and data processing expenses

1,774

1,790

5,537

5,656

Other

6,021

5,437

17,056

18,534

Total noninterest expense

20,018

19,715

59,707

59,998

Income Before Income Taxes

8,130

8,519

22,802

27,905

Provision for Income Taxes

1,767

1,997

4,913

6,196

Net Income

$ 6,363

$ 6,522

$ 17,889

$ 21,709

Basic/Diluted Earnings Per Common Share

$ 0.97

$ 1.09

$ 2.99

$ 4.03

BankFirst Capital Corporation
Unaudited Consolidated Statements of Income
(In Thousands, Except Per Share Data)

Quarter Ended

September 30

June 30

March 31

December 31

September 30

2024

2024

2024

2023

2023

Interest Income

Interest and fees on loans

$ 28,810

$ 27,983

$ 26,481

$ 26,161

$ 25,027

Taxable securities

3,336

3,441

3,358

3,483

3,583

Tax-exempt securities

514

517

520

530

533

Federal funds sold

4

10

12

202

333

Interest bearing bank balances

749

802

793

841

354

Total interest income

33,413

32,753

31,164

31,217

29,830

Interest Expense

Deposits

11,748

11,438

10,451

9,036

7,250

Short-term borrowings

6

7

1

-

42

Federal Home Loan Bank advances

-

-

-

-

336

Other borrowings

445

542

571

582

590

Total interest expense

12,199

11,987

11,023

9,618

8,218

Net Interest Income

21,214

20,766

20,141

21,599

21,612

Provision for Loan Losses

525

525

525

360

875

Net Interest Income After Provision for Credit Losses

20,689

20,241

19,616

21,239

20,737

Noninterest Income

Service charges on deposit accounts

2,579

2,445

2,479

2,477

2,298

Mortgage income

818

858

674

542

683

Interchange income

1,370

1,665

1,431

1,355

1,263

Net realized gains (losses) on available-for-sale securities

-

(194)

-

112

(1,471)

Gains (losses) on retirement of subordinated debt

-

956

-

-

-

Grant Income

280

-

-

-

6,197

Other

2,412

2,263

1,927

1,636

1,132

Total noninterest income

7,459

7,993

6,511

6,122

10,102

Noninterest Expense

Salaries and employee benefits

10,938

11,252

11,060

10,065

10,267

Net occupancy expenses

1,285

1,236

1,343

1,275

1,351

Equipment and data processing expenses

1,774

1,790

1,973

3,824

1,836

Other

6,021

5,437

5,598

4,043

6,584

Total noninterest expense

20,018

19,715

19,974

19,207

20,038

Income Before Income Taxes

8,130

8,519

6,153

8,154

10,801

Provision for Income Taxes

1,767

1,997

1,149

1,662

2,440

Net Income

$ 6,363

$ 6,522

$ 5,004

$ 6,492

$ 8,361

Basic/Diluted Earnings Per Common Share

$ 0.97

$ 1.09

$ 0.93

$ 1.20

$ 1.55

BankFirst Capital Corporation
Unaudited Selected Other Financial Information
(In Thousands)

September 30

June 30

March 31

December 31

September 30

Asset Quality

2024

2024

2024

2023

2023

Nonaccrual Loans

13,182

11,292

11,420

9,615

12,716

Restructured Loans

4,599

5,102

5,178

5,303

8,209

OREO

-

-

64

1

1

90+ still accruing

31

138

75

520

107

Non-performing Assets (excluding restructured)1

13,213

11,430

11,559

10,136

12,824

Allowance for credit loss to total loans

1.27 %

1.29 %

1.35 %

1.33 %

1.33 %

Allowance for credit loss to non-performing assets1

176 %

208 %

211 %

237 %

185 %

Non-performing assets1 to total assets

0.47 %

0.41 %

0.42 %

0.37 %

0.47 %

Non-performing assets1 to total loans and OREO

0.72 %

0.62 %

0.64 %

0.56 %

0.72 %

Annualized net charge-offs to average loans

0.05 %

0.06 %

0.02 %

0.00 %

0.02 %

Net charge-offs (recoveries)

944

1,137

277

-

413

Capital Ratios 2

CET1 Ratio

7.36 %

6.88 %

6.58 %

6.49 %

6.16 %

CET1 Capital

137,619

131,735

125,316

119,580

113,663

Tier 1 Ratio

18.25 %

17.51 %

17.25 %

17.52 %

17.19 %

Tier 1 Capital

340,941

335,066

328,652

322,916

317,004

Total Capital Ratio

19.90 %

19.15 %

19.29 %

19.58 %

19.25 %

Total Capital

371,820

366,506

367,498

360,996

355,088

Risk Weighted Assets

1,868,584

1,913,609

1,905,373

1,843,587

1,844,314

Tier 1 Leverage Ratio

12.50 %

12.49 %

12.39 %

12.17 %

12.15 %

Total Average Assets for Leverage Ratio

2,728,597

2,683,525

2,653,494

2,653,106

2,609,072

1. The restructured loan balance above includes performing and non-performing loans. The non-performing assets includes Nonaccrual loans,
+90days still accruing, and OREO. The asset quality ratios are calculated using the non-performing asset balance in the above schedule which
excludes restructured loans.

2. Since the Company has total consolidated assets of less than $3 billion, the Company is not subject to regulatory capital requirements.
This information has been prepared for informational purposes and if the Company were subject to such regulatory requirements.

BankFirst Capital Corporation
Reconciliation of Non-GAAP Financial Measures - End of Period For the Quarters Ended (Unaudited)
(In Thousands, Except Per Share Data)

September 30

June 30

March 31

December 31

September 30

2024

2024

2024

2023

2023

Book value per common share - GAAP

$ 37.51

$ 35.58

$ 34.48

$ 34.03

$ 32.48

Total common stockholders' equity - GAAP

203,720

193,432

187,727

183,757

175,347

Adjustment for Intangibles

73,500

73,888

77,851

78,256

78,661

Tangible common stockholders' equity - non-GAAP

130,220

119,544

109,876

109,095

96,686

Tangible book value per common share - non-GAAP

$ 23.97

$ 21.34

$ 20.18

$ 19.54

$ 17.91

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SOURCE BankFirst Capital Corporation

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