BankFirst Posts Strong Q1 Growth, Eyes Strategic ECIP Repurchase

COLUMBUS, Miss. – April 28, 2026 – BankFirst Capital Corporation (OTCQX: BFCC) announced a robust start to 2026, reporting a net income of $8.39 million for the first quarter. The figure represents a significant 30.5% increase from the $6.43 million earned in the same period last year, demonstrating substantial year-over-year momentum driven by strong organic growth in loans and deposits.

While the Q1 earnings show a sequential decrease from the $10.17 million reported in the fourth quarter of 2025—a period that benefited from a one-time accounting adjustment—the annual growth trajectory highlights the bank's expanding footprint and operational strength across its Mississippi and Alabama markets. The company's performance was bolstered by a 30% year-over-year surge in net interest income, which reached $28.51 million.

A Foundation of Organic Growth and Prudent Management

BankFirst's balance sheet reflects a period of sustained expansion. Total assets grew by 17.5% over the past year to reach $3.36 billion as of March 31, 2026. This growth was largely fueled by a 23% increase in total gross loans, which climbed to $2.24 billion. On the other side of the ledger, total deposits saw an 18.5% increase, rising to $2.85 billion, indicating continued customer confidence and a strong market presence.

This growth has not come at the expense of profitability or credit quality. The bank’s consolidated net interest margin (NIM)—a key indicator of lending profitability—expanded to 3.90%, up from 3.57% in the first quarter of 2025. This improvement was aided by a decline in the company's cost of funds to 1.77%, even as it remains competitive in its local markets. Furthermore, credit quality remains a pillar of strength, with the ratio of non-performing assets to total assets standing at a low 0.49%.

In a statement, President and CEO Moak Griffin celebrated the quarter's results. "The first quarter of 2026 was highlighted by steady organic loan and deposit growth, a decline in our cost of funds fueling our continued net interest margin expansion, and strong credit quality in our portfolio," Griffin stated.

This performance is particularly notable given the regional economic context. Both Mississippi and Alabama are projected to experience moderate but stable economic growth of around 1.5% in 2026. Against this backdrop of steady, rather than booming, economic activity, BankFirst’s double-digit growth in key metrics underscores the success of its strategic initiatives, including the 2025 acquisition of The Magnolia State Corporation.

Strategic Capital: The ECIP Advantage

Beyond its strong quarterly financials, BankFirst is executing a long-term capital strategy centered on its participation in the U.S. Treasury's Emergency Capital Investment Program (ECIP). The program was designed to inject capital into community-based financial institutions to support lending in underserved and minority communities.

BankFirst holds an aggregate of $248.57 million in senior preferred stock issued to the Treasury through the program. A key feature of ECIP is a dividend rate that adjusts based on the bank's performance in designated community lending. Due to its successful lending efforts, BankFirst has secured a favorable dividend rate of just 1.25% and expects to maintain this rate for the upcoming year.

More significantly, this commitment to community lending positions the bank for a potentially valuable strategic move. The company has an option agreement with the Treasury to repurchase the entire block of preferred stock once certain thresholds are met. One key benchmark, the "Qualified Lending Condition," requires that an average of at least 85% of total originations over 24 consecutive quarters qualifies as community-focused lending. As of March 31, 2026, BankFirst has already met this condition for 15 consecutive quarters.

Should this performance continue, the bank may be able to exercise its option to repurchase the preferred stock as early as the second half of 2028. Such a move could significantly enhance long-term shareholder value by simplifying its capital structure and eliminating future dividend payments, turning a commitment to community development into a direct financial advantage.

Building for the Future: Infrastructure and Shareholder Value

BankFirst is also investing in its physical and human capital to support its growth trajectory. CEO Moak Griffin proudly announced the official opening of a new corporate headquarters and training facility in Columbus, Mississippi, signaling a major investment in the company's future.

"This state-of-the-art facility serves as much more than a home base for our growing team; it is a strategic hub where our team members can finally come together under one roof to learn, collaborate, and grow," Griffin commented. "This investment is about our people and our communities ensuring we have the best culture and the best resources to take care of our customers across Mississippi and Alabama."

In addition to internal investments, the company continues to focus on direct returns to its investors. During the first quarter, BankFirst repurchased 50,000 shares of its common stock as part of a $10.0 million stock repurchase program authorized in May 2025. To date, 177,583 shares have been repurchased under the program, which is set to expire in May 2026.

The company’s capital position remains robust. Having opted into the Community Bank Leverage Ratio (CBLR) framework, a simplified regulatory capital measure, BankFirst reported a consolidated CBLR of 10.66%. This comfortably exceeds the 9.0% minimum required to be considered "well-capitalized," providing a strong buffer and operational flexibility as it continues to navigate the economic environment.