BANKFIRST CAPITAL CORPORATION Reports Record First Quarter 2021 Earnings of $4.3 Million

Rhea-AI Summary

BankFirst Capital Corporation (OTCQX: BFCC) has reported a record quarterly net income of $4.3 million or $0.81 per share for Q1 2021, reflecting a 48% increase year-over-year. Total assets have risen 35% to $1.78 billion compared to Q1 2020, largely due to organic growth and participation in the Paycheck Protection Program (PPP). Non-interest income increased 32% to $6 million, driven by higher mortgage lending income. However, net interest income decreased 1% to $12.7 million due to Federal Reserve interest rate cuts, and net loans outstanding were down 1% from the previous quarter.

Positive

• Record quarterly net income of $4.3 million, up 48% year-over-year.
• Total assets increased to $1.78 billion, a 35% rise from Q1 2020.
• Non-interest income rose 32% to $6 million, boosted by secondary mortgage lending.

Negative

• Net interest income decreased 1% to $12.7 million due to interest rate cuts by the Federal Reserve.
• Loans outstanding decreased 1% from the previous quarter, indicating potential demand issues.

COLUMBUS, Miss., April 26, 2021 /PRNewswire/ -- BankFirst Capital Corporation (OTCQX: BFCC) (the "Company") reported record quarterly net income of $4.3 million, or $0.81 per share, for the first quarter of 2021, an increase of 7% compared to net income of $4.0 million or $0.76 per share for the fourth quarter of 2020, and an increase of 48% compared to net income of $2.9 million or $0.64 per share for the first quarter of 2020.

CEO Commentary

Moak Griffin, President and Chief Executive Officer of the Company and BankFirst Financial Services, the Company's wholly-owned subsidiary bank, stated "We are pleased to report that the activity in our local markets has increased to near pre-pandemic levels which has resulted in a record first quarter for BankFirst.  We remain optimistic that BankFirst is well positioned to continue to build on the successes achieved during 2020 as we continue to meet the needs of our customers, shareholders, and our employees.

Financial Condition and Results of Operations

Total assets were $1.78 billion at March 31, 2021 as compared to $1.73 billion at December 31, 2020, an increase of 3%, and as compared to $1.32 billion at March 31, 2020, an increase of 35%. The increase in total assets from the prior year was due to organic loan and deposit growth, supported by participation in the Paycheck Protection Program (PPP), as well as the acquisition of Traders & Farmers Bancshares, Inc. on July 1, 2020. Loans outstanding, net of the allowance for loan losses, at March 31, 2021 totaled $1,118 million as compared to $1,126 million in the fourth quarter of 2020 a decrease of 1%, and as compared to $897 million in the first quarter of 2020, an increase of 25%. Net loans outstanding excluding loans associated with the PPP, at March 31, 2021 totaled $1,034 million, as compared to $1,044 million in the fourth quarter of 2020 a decrease of 1%, and as compared to $897 million in the first quarter of 2020, an increase of 15%. Asset quality remained solid with non-performing assets to total assets at 0.65% as of both March 31, 2021 and December 31, 2020, down from 0.77% as of March 31, 2020.

Non-interest-bearing deposits increased to $446.9 million as of March 31, 2021, as compared to $432.3 million in the fourth quarter of 2020, an increase of 3%, and as compared to $248.1 million as of March 31, 2020, an increase of 80%.  Non-interest-bearing deposits represented 28.51% of total deposits at March 31, 2021.  Total deposits as of March 31, 2021 were $1.57 billion, as compared to $1.52 billion for the fourth quarter of 2020, an increase of 3%, and as compared to $1.15 billion for March 31, 2020 an increase of 37%.  Cost of funds as of March 31, 2021 is 0.34% as compared to 0.41% at December 31, 2020, and as compared to 0.80% as of March 31, 2020.

The Company's ratio of loans to deposits is 72.4% at March 31, 2021 as compared to 75.4% at December 31, 2020, and as compared to 79.1% at March 31, 2020.

Net interest income is $12.7 million for the first quarter of 2021 a decrease of 1% as compared to $12.9 million for the fourth quarter of 2020. The decrease is primarily due to the interest rate reductions by the Federal Reserve in response to COVID-19. Net interest margin decreased to 3.01% as of March 31, 2021 from 3.21% as of December 31, 2020.

Noninterest income was $6 million for the first quarter of 2021, an increase of 32% as compared to $4.6 million for the first quarter of 2020, and an increase of 5% as compared to $5.7 million for the fourth quarter of 2020. The primary reasons for the increase are due to the increase in secondary mortgage lending income in 2021 and 2020 as well the receipt of a Community Development Financial Institution Financial Assistance grant of $888,000 in the first quarter of 2021. 

As of March 31, 2021, the Company's tangible book value per share was $20.12.  According to OTCQX, there were 332 trades during the first quarter of 2021 for a total of 66,877 shares for a total price of $1,445,182.  The closing share price on March 31, 2021 was $23.00.  Based on this closing share price, the Company's market cap was $121.49 million as of March 31, 2021.

Credit Quality

The Company' recorded $246,000 provision for credit losses during the first quarter of 2021 as compared to $147,000 for the fourth quarter of 2020, and as compared to $951,000 for the first quarter of 2020. The Allowance for Loan Losses was equal to 1.47% of gross loans and equal to 1.58% of gross loans less loans originated through the PPP. Net loan charge-offs  in the first quarter of 2021 were $95,000 as compared to $508,000 in the fourth quarter 2020, and as compared to $217,000 in the first quarter 2020.

As of March 31, 2021 and December 31, 2020, and based on the most recent analysis performed, the risk category of loans by type of loans (excluding mortgage held for sale) were as follows:

		Grades		Watch	Substandard			Total
		(1 - 5)		(6)		(7)		Loans
March 31, 2021
Secured by real estate
Construction		$      97,808		$        69		$   4,703		$    102,580
Farmland		47,267		1,316		288		48,871
Residential real estate		283,260		4,600		6,131		293,991
Commercial real estate		430,764		1,738		5,362		437,864
Consumer		20,849		299		164		21,312
Commercial and other		226,103		1,639		2,763		230,505
		$ 1,106,050		$   9,661		$ 19,411		$ 1,135,123
		Grades		Watch	Substandard			Total
		(1 - 5)		(6)		(7)		Loans
December 31, 2020
Secured by real estate
Construction		$    100,530		$        67		$   4,441		$    105,038
Farmland		47,432		1,287		317		49,036
Residential real estate		299,310		5,926		6,394		311,630
Commercial real estate		414,616		1,727		6,789		423,132
Consumer		23,283		297		147		23,727
Commercial and other		225,416		2,035		2,610		230,061
		$ 1,110,587		$ 11,339		$ 20,698		$ 1,142,624

 

The following tables present past due loans by type as of March 31, 2021 and as of December 31, 2020:

		Accruing Loans Past Due						Total
		30 - 89		90 Days		Non-	Past Due and			Current		Total
		Days		or More		accrual	Nonaccrual			Loans		Loans
March 31, 2021
Secured by real estate
Construction		$               -		$                -		$         4,428		$   4,428		$       98,152		$    102,580
Farmland		189		-		115		304		48,567		48,871
Residential real estate		2,241		-		2,304		4,545		289,446		293,991
Commercial real estate		862		-		1,508		2,370		435,494		437,864
Consumer		123		10		110		243		21,069		21,312
Commercial and other		672		-		2,017		2,689		227,816		230,505
		$       4,087		$              10		$       10,482		$ 14,579		$  1,120,543		$ 1,135,123
		Accruing Loans Past Due						Total
		30 - 89		90 Days		Non-	Past Due and			Current		Total
		Days		or More		accrual	Nonaccrual			Loans		Loans
December 31, 2020
Secured by real estate
Construction		$            11		$                -		$         4,414		$   4,425		$     100,613		$    105,038
Farmland		27		-		114		141		48,895		49,036
Residential real estate		1,786		20		2,072		3,878		307,752		311,630
Commercial real estate		8		-		1,536		1,544		421,588		423,132
Consumer		228		10		80		318		23,409		23,727
Commercial and other		324		-		1,806		2,130		227,931		230,061
		$       2,384		$              30		$       10,022		$ 12,436		$  1,130,188		$ 1,142,624

Paycheck Protection Program ("PPP")

BankFirst Financial Services (the "Bank") is participating in the Paycheck Protection Program ("PPP"), a $944 billion low-interest business loan program funded by the U.S. Treasury Department and administered by the U.S. Small Business Administration. The PPP Loan Program provides U.S. government guarantees for lenders, as well as loan forgiveness incentives for borrowers that predominately utilize the loan proceeds to cover employee compensation-related business costs. The Bank participated in Rounds 1 and 2, during 2020 and is currently participating in Round 3 in 2021.  In 2020, the Bank approved 1,489 PPP loans totaling $115.6 million. Through March 31, 2021, the Bank has received loan forgiveness payments from the SBA totaling $74.7 million.  During the 1^st quarter of 2021, the Bank approved 608 PPP loans totaling $43.4 million.  The Bank anticipates approving a total of $55 - $60 million PPP loans in Round 3.  The bank received approximately $4.4 million in fees (net of expenses) paid by the SBA on our first round of PPP loans, which we have recognized $650,000 as loan fee income for the first quarter of 2021, and $2.4 million was recognized as loan fee income during 2020. We anticipate receiving approximately $4 million for the 2021 loans. The average balance of the approved PPP loans is approximately $75,000.

Lending

We have taken actions to identify and assess our COVID-19 related credit exposures by asset classes and borrower types. We implemented a loan modification program to assist both consumer and business borrowers that are experiencing or expect to experience financial hardships due to COVID-19 related challenges. Accordingly, the following table summarizes the aggregate balances of loans with deferred payments that the Company has modified as result of COVID-19 as of March 31, 2021 and December 31, 2020.

			Loan Balances Modified Due to COVID-19 as of 3/31/2021
	Loan Balance		Loans Modified to Interest Only Payments		Loans Modified to Payment Deferral		Total Loans Modified		Percentage of Loans Modified
Secured by real estate
Construction	$        102,580		$                           -		$                            -		$                -		0.00%
Farmland	48,871		-		-		-		0.00%
Residential real estate	293,991		-		-		-		0.00%
Commercial real estate	437,864		29,392		-		29,392		6.71%
Consumer	21,312		-		-		-		0.00%
Commercial and other	230,505		-		-		-		0.00%
Total Loans	$     1,135,123		$                  29,392		$                          -		$       29,392		2.59%
			Loan Balances Modified Due to COVID-19 as of 12/31/2020
	Loan Balance		Loans Modified to Interest Only Payments		Loans Modified to Payment Deferral		Total Loans Modified		Percentage of Loans Modified
Secured by real estate
Construction	$        105,038		$                           -		$                            -		$                -		0.00%
Farmland	49,036		-		-		-		0.00%
Residential real estate	311,630		-		-		-		0.00%
Commercial real estate	423,132		20,737		2,432		23,169		5.48%
Consumer	23,727		-		4		4		0.02%
Commercial and other	230,061		-		15		15		0.01%
Total Loans	$     1,142,624		$                  20,737		$                    2,451		$       23,188		2.03%

Modified loans with deferred payments will continue to accrue interest during the deferral period unless otherwise classified as nonperforming. Consistent with bank regulatory guidance, borrowers that were otherwise current on loan payments that were granted COVID-19 related financial hardship payment deferrals will continue to be reported as current loans throughout the agreed upon deferral periods. COVID-19 related loan modifications are also deemed to be insignificant borrower concessions, and therefore, such modified loans were not classified as troubled-debt restructured loans as of March 31, 2021.

The COVID-19 crisis has continued to impact our financial results, as well as demand for our services and products during the second quarter of 2021 and potentially beyond. The short and long-term implications of the COVID-19 crisis, and related monetary and fiscal stimulus measures, on our future revenues, earnings results, allowance for credit losses, capital reserves and liquidity are unknown at present.

ABOUT BANKFIRST CAPITAL CORPORATION

BankFirst Financial Services, the wholly-owned banking subsidiary of BankFirst Capital Corporation, was founded in 1888 and is a $1.78 billion financial institution that is locally owned, controlled, and operated. The Bank is headquartered in Columbus, Mississippi, with additional branch offices in Flowood, Hattiesburg, Jackson, Louin, Macon, Madison, Newton, Starkville, and West Point, Mississippi and Addison, Aliceville, Arley, Bear Creek, Carrollton, Curry, Double Springs, Gordo, Haleyville, Lynn, Northport, and Tuscaloosa, Alabama. The Bank also operates two mortgage production offices, one in Oxford, Mississippi and one in Brookhaven, Mississippi. 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.

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, (i) statements regarding certain of the Company's goals and expectations with respect to future events that are subject to various risks and uncertainties, (ii) statements about the merger of Traders & Farmers Bancshares, Inc. with BankFirst (the "merger"), and (iii) 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: fluctuation in market rates of interest and loan and deposit pricing, adverse changes in the overall national economy as well as adverse economic conditions in our specific market areas, including as a result of the coronavirus pandemic, our ability to complete the merger and recognize the expected benefits and synergies of the merger, maintenance and development of well-established and valued client relationships and referral source relationships, and acquisition or loss of key production personnel.  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.  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.

NO OFFER OR SOLICITATION

This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities.  The shares of common stock of BankFirst are not savings or deposit accounts and are not insured by the Federal Deposit Insurance Corporation or any other government agency.

BankFirst Capital Corporation Unaudited Consolidated Balance Sheets (In Thousands, Except Per Share Data)
	March 31		December 31		September 30		June 30		March 31
	2021		2020		2020		2020		2020
Assets
Cash and due from banks	$      33,046		$         37,208		$          30,492		$      37,619		$      44,311
Interest bearing bank balances	60,599		83,324		10,056		86,631		19,106
Federal funds sold	8,968		8,408		9,391		4,900		4,900
Available-for-sale securities	411,930		329,409		296,748		258,005		248,510
Loans	1,135,123		1,142,624		1,206,834		1,044,164		907,458
Allowance for loan losses	(16,647)		(16,496)		(16,857)		(11,832)		(10,153)
Loans, net of allowance for loan losses	1,118,476		1,126,128		1,189,977		1,032,332		897,305
Premises and equipment	42,227		42,414		42,232		33,340		33,526
Interest receivable	8,574		8,978		9,829		7,993		4,549
Goodwill	34,564		34,564		34,564		19,526		19,526
Other intangible assets	4,375		4,535		4,695		4,189		4,333
Other	57,206		54,387		53,496		44,988		45,591
Total assets	$ 1,779,965		$    1,729,355		$     1,681,480		$ 1,529,523		$ 1,321,657
Liabilities and Stockholders' Equity
Liabilities
Noninterest bearing deposits	$    446,921		$       432,252		$        417,135		$    330,562		$    248,142
Interest bearing deposits	1,120,748		1,082,920		1,051,618		903,850		898,427
Total deposits	1,567,669		1,515,172		1,468,753		1,234,412		1,146,569
Notes payable	27,843		28,605		29,375		129,995		16,155
Subordinated debt	26,341		26,341		26,086		28,841		29,186
Interest payable	1,084		1,123		987		972		1,128
Other	11,801		11,162		11,111		9,683		8,938
Total liabilities	1,634,738		1,582,403		1,536,312		1,403,903		1,201,976
Stockholders' Equity
Common stock	1,585		1,581		1,578		1,351		1,350
Additional paid-in capital	60,229		60,113		59,980		42,843		42,807
Retained earnings	84,798		80,479		79,169		75,814		72,575
Accumulated other comprehensive income	(1,385)		4,779		4,441		5,612		2,949
Total stockholders' equity	145,227		146,952		145,168		125,620		119,681
Total liabilities and stockholders' equity	$ 1,779,965		$    1,729,355		$     1,681,480		$ 1,529,523		$ 1,321,657
Common shares outstanding	5,282,164		5,270,323		5,260,294		4,500,784		4,501,054
Book value per share	$        27.49		$           27.88		$            27.60		$        27.91		$        26.59
Tangible book value per share	$        20.12		$           20.46		$            20.13		$        22.64		$        21.29

 

BankFirst Capital Corporation Unaudited Consolidated Statements of Income (In Thousands, Except Per Share Data)
	For Three Months Ended
	March		December
	2021		2020
Interest Income
Interest and fees on loans	$ 13,043		$    13,463
Taxable securities	1,195		1,062
Tax-exempt securities	444		447
Federal funds sold	28		13
Interest bearing bank balances	11		15
Total interest income	14,721		15,000
Interest Expense
Deposits	1,454		1,542
Federal Home Loan Bank advances	82		81
Other borrowings	438		443
Total interest expense	1,974		2,066
Net Interest Income	12,747		12,934
Provision for Loan Losses	246		147
Net Interest Income After Provision for Loan Losses	12,501		12,787
Noninterest Income
Service charges on deposit accounts	1,547		1,622
Mortgage income	1,822		1,770
Interchange income	975		986
Net realized gains (losses) on available-for-sale securities	13		(1)
Other	1,649		1,351
Total noninterest income	6,006		5,728
Noninterest Expense
Salaries and employee benefits	7,750		7,668
Net occupancy expenses	755		761
Equipment and data processing expenses	340		343
Other	4,382		5,007
Total noninterest expense	13,227		13,779
Income Before Income Taxes	5,280		4,736
Provision for Income Taxes	1,002		749
Net Income	$   4,278		$      3,987
Basic Earnings Per Common Share	$     0.81		$        0.76

 

BankFirst Capital Corporation Unaudited Consolidated Statements of Income (In Thousands, Except Per Share Data)
	Quarter Ended
	March		December 31		September 30		June 30		March 31
	2021		2020		2020		2020		2020
Interest Income
Interest and fees on loans	$ 13,043		$         13,463		$          15,671		$ 12,403		$   11,479
Taxable securities	1,195		1,062		1,106		1,189		1,204
Tax-exempt securities	444		447		419		242		234
Federal funds sold	28		13		23		24		230
Interest bearing bank balances	11		15		16		16		16
Total interest income	14,721		15,000		17,235		13,874		13,163
Interest Expense
Deposits	1,454		1,542		1,883		1,942		2,302
Federal Home Loan Bank advances	82		81		81		82		81
Other borrowings	438		443		494		469		422
Total interest expense	1,974		2,066		2,458		2,493		2,805
Net Interest Income	12,747		12,934		14,777		11,381		10,358
Provision for Loan Losses	246		147		5,161		1,853		951
Net Interest Income After Provision for Loan Losses	12,501		12,787		9,616		9,528		9,407
Noninterest Income
Service charges on deposit accounts	1,547		1,622		1,520		1,148		1,516
Mortgage income	1,822		1,770		1,871		1,823		876
Interchange income	975		986		812		790		762
Net realized gain (loss)  on available-for-sale securities	13		(1)		2,845		522		226
Other	1,649		1,351		849		527		1,177
Total noninterest income	6,006		5,728		7,897		4,810		4,557
Noninterest Expense
Salaries and employee benefits	7,750		7,668		7,778		6,182		5,738
Net occupancy expenses	755		761		785		580		600
Equipment and data processing expenses	340		343		320		250		242
Other	4,382		5,007		4,661		3,606		3,663
Total noninterest expense	13,227		13,779		13,544		10,618		10,243
Income Before Income Taxes	5,280		4,736		3,969		3,720		3,721
Provision for Income Taxes	1,002		749		613		481		821
Net Income	$   4,278		$           3,987		$            3,356		$   3,239		$     2,900
Basic Earnings Per Common Share	$     0.81		$             0.76		$              0.64		$     0.72		$       0.64

 

View original content:http://www.prnewswire.com/news-releases/bankfirst-capital-corporation-reports-record-first-quarter-2021-earnings-of-4-3-million-301276263.html

SOURCE BankFirst Capital Corporation

FAQ

What is BankFirst Capital Corporation's net income for Q1 2021?

BankFirst Capital Corporation reported a net income of $4.3 million for Q1 2021.

How much did BankFirst's total assets increase in Q1 2021?

Total assets increased by 35% to $1.78 billion compared to Q1 2020.

What were the earnings per share for BFCC in Q1 2021?

The earnings per share for BankFirst Capital Corporation in Q1 2021 were $0.81.

What factors contributed to the increase in BankFirst's non-interest income?

The increase in non-interest income was primarily due to rising secondary mortgage lending income.

How did the Federal Reserve impact BankFirst's net interest income?

Net interest income decreased by 1% due to interest rate reductions by the Federal Reserve.