BANKFIRST CAPITAL CORPORATION Reports Second Quarter 2021 Earnings of $4.3 Million

Rhea-AI Summary

BankFirst Capital Corporation (OTCQX: BFCC) reported a net income of $4.3 million, or $0.81 per share, for Q2 2021, consistent with Q1 2021 and up 39% from Q2 2020. For the first half of 2021, net income reached $8.6 million, up 18% from $6.1 million in 2020. Total assets increased to $1.8 billion, an 18% rise year-over-year. Non-interest income saw a slight decline, primarily due to a first-quarter grant. The company maintained a strong credit quality, with non-performing assets at 0.63%. Total deposits rose to $1.58 billion, reflecting organic growth and PPP participation.

Positive

• Net income for Q2 2021 remains stable at $4.3 million, indicating consistent performance.
• Total assets increased 18% year-over-year to $1.8 billion, reflecting strong organic growth.
• Loans outstanding grew by 9% from Q1 2021, showcasing effective lending practices.
• Non-interest-bearing deposits rose 40% year-over-year, enhancing liquidity.

Negative

• Non-interest income decreased by 7% from Q1 2021, reflecting potential revenue pressure.
• Net loan charge-offs increased to $265,000 in Q2 2021 from $95,000 in Q1 2021, indicating rising credit risks.

COLUMBUS, Miss., July 26, 2021 /PRNewswire/ -- BankFirst Capital Corporation (OTCQX: BFCC) (the "Company") reported quarterly net income of $4.3 million, or $0.81 per share, for the second quarter of 2021, compared to net income of $4.3 million or $0.81 per share for the first quarter of 2021, and an increase of 39% compared to net income of $3.2 million or $0.72 per share for the second quarter of 2020.  Net Income of $8.6 million, or $1.62 per share, for the first six months of 2021, compared to net income of $6.1 million or $1.37 per share for the first six months of 2020, an increase of 18%. 

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 another strong quarter of earnings. Our local markets have recovered nicely from the pandemic and we have successfully integrated our most recent acquisition. We remain optimistic about the improving economy in our markets and we are excited for what the remainder of the year has to offer."

Financial Condition and Results of Operations

Total assets were $1.8 billion at June 30, 2021 as compared to $1.78 billion at March 31, 2021, an increase of 1%, and as compared to $1.5 billion at June 30, 2020, an increase of 18%. 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, as of June 30, 2021 totaled $1,124 million as compared to $1,118 million as of March 31, 2021, and as compared to $1,032 million as of June 30, 2020, an increase of 9%. Net loans outstanding excluding loans associated with the PPP, as of June 30, 2021 totaled $1,052 million, as compared to $1,034 million as of March 31,2021 an increase of 2%, and as compared to $917 million as of June 30, 2020, an increase of 15%.

Non-interest-bearing deposits increased to $462 million as of June 30, 2021, as compared to $447 million as of March 31, 2021, an increase of 3%, and as compared to $331 million as of June 30, 2020, an increase of 40%.  Non-interest-bearing deposits represented 29% of total deposits as of June 30, 2021.  Total deposits as of June 30, 2021 were $1.58 billion, as compared to $1.57 billion as of March 31, 2021, an increase of 1%, and as compared to $1.23 billion as of June 30, 2020 an increase of 28%.  Cost of funds as of June 30, 2021 is 0.31% as compared to 034% as of March 31, 2021, and as compared to 0.61% as of June 30, 2020.

The Company's ratio of loans to deposits was 72.2% as of June 30, 2021 as compared to 72.4% as of March 31, 2021, and as compared to 84.6% as of June 30, 2020. The Company's ratio of loans net of PPP loans to deposits was 67% as of June 30, 2021, as compared to 66% as of March 31, 2021, and compared to 74% as of June 30, 2020.

Net interest income was $12.9 million for the second quarter of 2021, an increase of 1% as compared to $12.7 million for the first quarter of 2021. Net interest margin increased to 3.02% in the second quarter of 2021, compared to 3.01% in the first quarter of 2021. The increase is primarily due to the decrease in interest expense of $266,000 or 13%, due to changes in the mix of our interest-bearing deposits and non-interest deposits. Yield on earning assets decreased 1 basis point to 3.32% in the second quarter 2021, compared to 3.34% during the first quarter of 2021.  The decrease, despite an increase in loan volume, is due to the lower interest rate environment as a result of the Federal reserve's interest rate reductions in response to the pandemic.

Noninterest income was $5.6 million for the second quarter of 2021, a decrease of 7% as compared to $6 million for the first quarter of 2021, and an increase of 5% as compared to $4.8 million for the second quarter of 2020.  Mortgage banking revenue decreased $85,000 to $1.74 million in the second quarter of 2021 from $1.82 million in the first quarter of 2021, or 4.7%. The primary reason for the overall decrease in noninterest income in the second quarter is due to the receipt of a Community Development Financial Institution Financial Assistance grant of $888,000 in the first quarter of 2021. 

As of June 30, 2021, the Company's tangible book value per share was $21.62. According to OTCQX, there were 157 trades during the second quarter of 2021 for a total of 68,906 shares for a total price of $1,692,681.  The closing share price on June 30, 2021 was $26.25.  Based on this closing share price, the Company's market cap was $138.568 million as of June 30, 2021.

Credit Quality

The Company recorded $144,000 provision for credit losses during the second quarter of 2021 as compared to $246,000 for the first quarter of 2021, and as compared to $1.85 million for the second quarter of 2020. The allowance for loan losses was equal to 1.45% of gross loans and equal to 1.55% of gross loans less loans originated through the PPP. Net loan charge-offs in the second quarter of 2021 were $265,000 as compared to $95,000 in the first quarter 2021, and as compared to $174,000 in the second quarter 2020. Non-performing assets to total assets were 0.63% for the second quarter of 2021, a decrease of 2 basis points compared to 0.65% for the first quarter of 2021 and a decrease of 6 basis points compared to 0.69% for the second quarter of 2020. Annualized net charge-offs to average loans were 0.02%, compared to 0.01% for the first quarter of 2021 compared to 0.01% for the second  quarter of 2020. 

Paycheck Protection Program ("PPP")

BankFirst Financial Services (the "Bank") participated 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 which officially ended May 31, 2021. 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 in Round 3 in 2021.  In 2020, the Bank approved 1,489 PPP loans totaling $115.6 million. Through June 30, 2021, the Bank has received loan forgiveness payments from the SBA totaling $103 million on Rounds 1 and 2 PPP loans. 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 $275,000 as loan fee income during the second quarter of 2021, year-to-date we have recognized $940,000, compared to $940,000 for the first six months of 2020 and $2.4 million was recognized in total as loan fee income during 2020.

In 2021, during Round 3, the Bank approved 1,382 PPP loans totaling $62 million.  Through June 30, 2021 the Bank has received forgiveness payments from the SBA totaling $2.7 million on Round 3 PPP loans.  The bank received approximately $4 million in fees (net of expenses) for the 2021 loans, which we have recognized $50,000 as loan fee income during the second quarter of 2021.

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. As of June 30, 2021, the Bank had 0.59% of its loan portfolio that has modified as result of COVID-19 compared to 2.59% as of March 31, 2021 and 2.03% as of December 31, 2020.

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 June 30, 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 $1.8 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)
	June 30		March 31		December 31		September 30		June 30
	2021		2021		2020		2020		2020
Assets
Cash and due from banks	$      43,997		$      33,046		$         37,208		$          30,492		$      37,619
Interest bearing bank balances	47,049		60,599		83,324		10,056		86,631
Federal funds sold	9,313		8,968		8,408		9,391		4,900
Available-for-sale securities	427,390		411,930		329,409		296,748		258,005
Loans	1,140,349		1,135,123		1,142,624		1,206,834		1,044,164
Allowance for loan losses	(16,526)		(16,647)		(16,496)		(16,857)		(11,832)
Loans, net of allowance for loan losses	1,123,823		1,118,476		1,126,128		1,189,977		1,032,332
Premises and equipment	42,164		42,227		42,414		42,232		33,340
Interest receivable	8,366		8,574		8,978		9,829		7,993
Goodwill	34,564		34,564		34,564		34,564		19,526
Other intangible assets	4,214		4,375		4,535		4,695		4,189
Other	57,338		57,206		54,387		53,496		44,988
Total assets	$ 1,798,218		$ 1,779,965		$    1,729,355		$     1,681,480		$ 1,529,523
Liabilities and Stockholders' Equity
Liabilities
Noninterest bearing deposits	$    462,436		$    446,921		$       432,252		$        417,135		$    330,562
Interest bearing deposits	1,115,992		1,120,748		1,082,920		1,051,618		903,850
Total deposits	1,578,428		1,567,669		1,515,172		1,468,753		1,234,412
Notes payable	27,030		27,843		28,605		29,375		129,995
Subordinated debt	26,341		26,341		26,341		26,341		28,841
Interest payable	817		1,084		1,123		987		972
Other	12,716		11,801		11,162		10,856		9,683
Total liabilities	1,645,332		1,634,738		1,582,403		1,536,312		1,403,903
Stockholders' Equity
Common stock	1,583		1,585		1,581		1,578		1,351
Additional paid-in capital	60,279		60,229		60,113		59,980		42,843
Retained earnings	89,083		84,798		80,479		79,169		75,814
Accumulated other comprehensive income	1,941		(1,385)		4,779		4,441		5,612
Total stockholders' equity	152,886		145,227		146,952		145,168		125,620
Total liabilities and stockholders' equity	$ 1,798,218		$ 1,779,965		$    1,729,355		$     1,681,480		$ 1,529,523
Common shares outstanding	5,278,771		5,282,164		5,270,323		5,260,294		4,500,784
Book value per share	$        28.96		$        27.49		$           27.88		$            27.60		$        27.91
Tangible book value per share	$        21.62		$        20.12		$           20.46		$            20.13		$        22.64

 

BankFirst Capital Corporation Unaudited Consolidated Statements of Income (In Thousands, Except Per Share Data)
	For Three Months Ended				For the Six Months Ended
	June		March		June		June
	2021		2021		2021		2020
Interest Income
Interest and fees on loans	$ 12,856		$ 13,043		$ 25,899		$ 23,882
Taxable securities	1,270		1,195		2,465		2,393
Tax-exempt securities	442		444		886		476
Federal funds sold	19		28		47		254
Interest bearing bank balances	11		11		22		33
Total interest income	14,598		14,721		29,319		27,038
Interest Expense
Deposits	1,189		1,454		2,643		4,244
Federal Home Loan Bank advances	81		82		163		163
Other borrowings	438		438		876		891
Total interest expense	1,708		1,974		3,682		5,298
Net Interest Income	12,890		12,747		25,637		21,740
Provision for Loan Losses	144		246		390		2,804
Net Interest Income After Provision for Loan Losses	12,746		12,501		25,247		18,936
Noninterest Income
Service charges on deposit accounts	1,658		1,547		3,205		2,665
Mortgage income	1,737		1,822		3,559		2,700
Interchange income	1,201		975		2,176		1,552
Net realized gains (losses) on available-for-sale securities	-		13		13		748
Other	1,002		1,649		2,651		1,704
Total noninterest income	5,598		6,006		11,604		9,369
Noninterest Expense
Salaries and employee benefits	7,561		7,750		15,311		11,921
Net occupancy expenses	739		755		1,494		1,181
Equipment and data processing expenses	387		340		727		491
Other	4,606		4,382		8,988		7,271
Total noninterest expense	13,293		13,227		26,520		20,864
Income Before Income Taxes	5,051		5,280		10,331		7,441
Provision for Income Taxes	766		1,002		1,768		1,302
Net Income	$   4,285		$   4,278		$   8,653		$   6,139
Basic/Diluted Earnings Per Common Share	$     0.81		$     0.81		$     1.62		$     1.37

 

BankFirst Capital Corporation Unaudited Consolidated Statements of Income (In Thousands, Except Per Share Data)
	Quarter Ended
	June		March		December 31		September 30		June 30
	2021		2021		2020		2020		2020
Interest Income
Interest and fees on loans	$ 12,856		$ 13,043		$         13,463		$          15,671		$ 12,403
Taxable securities	1,270		1,195		1,062		1,106		1,189
Tax-exempt securities	442		444		447		419		242
Federal funds sold	19		28		13		23		24
Interest bearing bank balances	11		11		15		16		16
Total interest income	14,598		14,721		15,000		17,235		13,874
Interest Expense
Deposits	1,189		1,454		1,542		1,883		1,942
Federal Home Loan Bank advances	81		82		81		81		82
Other borrowings	438		438		443		494		469
Total interest expense	1,708		1,974		2,066		2,458		2,493
Net Interest Income	12,890		12,747		12,934		14,777		11,381
Provision for Loan Losses	144		246		147		5,161		1,853
Net Interest Income After Provision for Loan Losses	12,746		12,501		12,787		9,616		9,528
Noninterest Income
Service charges on deposit accounts	1,658		1,547		1,622		1,520		1,148
Mortgage income	1,737		1,822		1,770		1,871		1,823
Interchange income	1,201		975		986		812		790
Net realized gain (loss)  on available-for-sale securities	-		13		(1)		2,845		522
Other	1,002		1,649		1,351		849		527
Total noninterest income	5,598		6,006		5,728		7,897		4,810
Noninterest Expense
Salaries and employee benefits	7,561		7,750		7,668		7,778		6,182
Net occupancy expenses	739		755		761		785		580
Equipment and data processing expenses	387		340		343		320		250
Other	4,606		4,382		5,007		4,661		3,606
Total noninterest expense	13,293		13,227		13,779		13,544		10,618
Income Before Income Taxes	5,051		5,280		4,736		3,969		3,720
Provision for Income Taxes	766		1,002		749		613		481
Net Income	$   4,285		$   4,278		$           3,987		$            3,356		$   3,239
Basic/Diluted Earnings Per Common Share	$     0.81		$     0.81		$             0.76		$              0.64		$     0.72

 

BankFirst Capital Corporation Unaudited Risk Category of Loans by Type (In Thousands)
		Grades		Watch	Substandard			Total
		(1 - 5)		(6)		(7)		Loans
June 30, 2021
Secured by real estate
Construction		$      98,092		$        39		$   4,665		$    102,796
Farmland		57,699		913		237		58,849
Residential real estate		272,289		4,402		5,710		282,401
Commercial real estate		441,416		6,372		5,925		453,713
Consumer		20,290		213		228		20,731
Commercial and other		218,050		1,172		2,637		221,859
		$ 1,107,836		$ 13,111		$ 19,402		$ 1,140,349
		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
		$ 1,106,051		$   9,661		$ 19,411		$ 1,135,123

 

BankFirst Capital Corporation Unaudited Past Due Loans (In Thousands)
		Accruing Loans Past Due						Total
		30 - 89		90 Days		Non-	Past Due and			Current		Total
		Days		or More		accrual	Nonaccrual			Loans		Loans
June 30, 2021
Secured by real estate
Construction		$          369		$                -		$         4,391		$   4,760		$       98,036		$    102,796
Farmland		115		-		15		130		58,719		58,849
Residential real estate		764		-		2,006		2,770		279,631		282,401
Commercial real estate		-		-		1,820		1,820		451,893		453,713
Consumer		108		1		110		219		20,512		20,731
Commercial and other		589		-		2,056		2,645		219,214		221,859
		$       1,945		$                1		$       10,398		$ 12,344		$  1,128,005		$ 1,140,349
		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		$  1,120,544		$ 1,135,123

 

View original content:https://www.prnewswire.com/news-releases/bankfirst-capital-corporation-reports-second-quarter-2021-earnings-of-4-3-million-301341400.html

SOURCE BankFirst Capital Corporation

FAQ

What were BankFirst Capital Corporation's earnings for Q2 2021?

BankFirst reported a net income of $4.3 million, or $0.81 per share, for Q2 2021.

How does BankFirst's total assets compare year-over-year?

Total assets increased by 18% year-over-year to $1.8 billion as of June 30, 2021.

What is the current credit quality of BankFirst's loans?

As of Q2 2021, non-performing assets to total assets were 0.63%, a decrease compared to previous quarters.

How much did BankFirst's non-interest income change in Q2 2021?

Non-interest income decreased by 7% from Q1 2021, totaling $5.6 million.

What impact did the Paycheck Protection Program have on BankFirst's performance?

BankFirst participated in the PPP, approving 1,489 loans totaling $115.6 million in 2020, with significant forgiveness payments received.