BANKFIRST CAPITAL CORPORATION Reports First Quarter 2023 Earnings of $7.1 Million.

COLUMBUS, Miss: BankFirst Capital Corporation (OTCQX: BFCC) ("BankFirst" or the "Company"), parent company of BankFirst Financial Services, Macon, Mississippi (the "Bank"), reported quarterly net income of $7.1 million, or $1.33 per share, for the first quarter of 2023, compared to net income of $7.0 million, or $1.31 per share, for the fourth quarter of 2022, and compared to net income of $4.5 million, or $0.85 per share, for the first quarter of 2022.

First Quarter 2023 Highlights:

Net income totaled $7.1 million, or $1.33 per share, in the first quarter of 2023 compared to $4.5 million, or $0.85 per share, in the first quarter of 2022.

Net interest income increased 53% to $23.5 million in the first quarter of 2023 from $15.3 million in the first quarter of 2022.

Total assets increased 32% to $2.7 billion at March 31, 2023 from $2.0 billion at March 31, 2022.

Total loans increased 42% to $1.7 billion at March 31, 2023 from $1.2 billion at March 31, 2022.

Total deposits increased 26% to $2.3 billion at March 31, 2023 from $1.8 billion at March 31, 2022.

Available liquidity sources totaled $987.6 million as of March 31, 2023.

There were no brokered deposits or borrowings as of March 31, 2023.

Nonperforming assets, excluding restructured loans, improved to 0.47% of total assets at March 31, 2023 from 0.72% March 31, 2022.

The Bank adopted the current expected credit loss (CECL) methodology for estimating credit losses effective January 1, 2023.

As previously announced, on January 1, 2023, the Company completed its acquisition of Mechanics Banc Holding Company ("Mechanics"), parent company of Mechanics Bank, Water Valley, Mississippi ("Mechanics Bank") for all cash consideration. The acquisition of Mechanics resulted in the Bank having 47 locations serving Mississippi and Alabama.

Recent Developments

On April 10, 2023, the Bank and Mechanics Bank were each named a recipient of a grant award under the Community Development Financial Institution Equitable Recovery Program (the "CDFI ERP"). The Bank was awarded $6.2 million and Mechanics Bank was awarded $4.9 million, which will be received by the Bank as the successor entity in the Bank's acquisition of Mechanics Bank. The grants may be received in the second quarter of 2023 and may be used to support lending to small businesses and microenterprises, community facilities, affordable housing, commercial real estate and intermediary lending to non-profits and community development financial institutions, as well as used for financial services, development services to support borrowers, and operational support.

CEO Commentary

Moak Griffin, President and Chief Executive Officer of the Company and the Bank, stated, "We are pleased to report another strong quarter of earnings, particularly in light of the recent headlines and uncertainty in other parts of the banking industry. We are proud of our consistent results during the ongoing period of rising interest rates, persistent inflation in the U.S., and a more challenging overall economy with increased scrutiny on bank liquidity and capital. In addition, during the first...