#United States #Columbus #Q3 2025 #BankFirst #Magnolia Acquisition

BankFirst Capital Corporation Overview

BankFirst Capital Corporation (OTCQX: BFCC), headquartered in Columbus, Mississippi, has recently shared its earnings report for the third quarter of 2025. The company has reported a net income of $5.20 million, equivalent to $0.83 per common share. In comparison, this figure reflects a drop from the previous quarter’s earnings of $6.88 million and also shows a decrease from $6.36 million earned in the same quarter last year.

Strategic Acquisition and Financial Highlights

A highlight of the quarter was the successful completion of the acquisition of The Magnolia State Corporation on July 1, 2025. This strategic move expanded the company's market reach substantially, bringing in 52 locations across Mississippi and Alabama. The Magnolia State Corporation had total assets of $465.61 million, including loans of $358.13 million and deposits of $414.51 million. This acquisition prompted the company to allocate a $4.14 million provision for credit loss, impacting the earnings reported for this quarter.

Despite the added provision costs due to the acquisition, BankFirst’s operational metrics showed promising trends. Total assets increased by 17% to approximately $3.34 billion from $2.80 billion at the same time last year. The company also reported a 20% increase in gross loans, rising to $2.20 billion compared to $1.84 billion year-over-year.

Furthermore, there were substantial gains in deposits, which increased by 21%, totaling $2.84 billion compared to $2.35 billion in September 2024. This surge in deposits underlines the trust that customers have in BankFirst, particularly following recent mergers.

Earnings Breakdown

When isolating the effects of the acquisition-related provision, the company's adjusted net income for Q3 would have been around $8.3 million, or about $1.39 per share. This adjustment emphasizes the strength of BankFirst's operations outside the influence of its new acquisition.

Total interest income recorded was $28.82 million, reflecting an increase from $21.21 million reported in Q3 2024. The improved interest margin of 4.19% indicates effective management of pricing strategies across loan products and the overall banking portfolio. Yield on interest-earning assets significantly grew to 6.24%, compared to 5.57% in the previous quarter.

Credit Quality and Management Statements

The credit quality remained robust, with non-performing assets at 0.46% of total assets, marking a slight improvement from 0.47% in fall 2024. Provisions for credit losses, while significantly raised due to the acquisition, remain a manageable percentage of total loans, currently standing at 1.25%.

CEO Moak Griffin commented on the overall financial results emphasizing operational resilience despite the challenges faced during the acquisition phase. He stated, “This quarter has been pivotal for us as we welcomed Magnolia into our family. Our focus remains on integrating our operations seamlessly while also enhancing customer service.”

Looking Ahead: Financial Forecast and Strategies

Going forward, BankFirst is poised to harness the potential from its recent acquisition, focusing its efforts on converting core data processing systems in November 2025. The anticipated results from this will be critical for meeting the evolving needs of its expanded customer base, aiming for sustained growth and shareholder value enhancement.

In summary, BankFirst Capital Corporation shows promising growth despite challenges related to the acquisition of Magnolia State Corporation. The company’s strategic management and robust financial results signal a strong future for BankFirst as it continues to establish itself as a key player in the regional banking landscape.