In a move set to reshape the banking landscape in Mississippi and Alabama, BankFirst Capital Corporation (OTCQX: BFCC) has announced plans to acquire The Magnolia State Corporation and its subsidiary, Magnolia State Bank. This strategic merger, expected to close in the third quarter of 2025, will significantly expand BankFirst’s presence in the South Mississippi market.
BankFirst Capital Corporation is a Columbus, Mississippi-based bank holding company with a rich history dating back to 1888. As of December 31, 2024, BankFirst reported total assets of approximately $2.8 billion.
The acquisition will bring BankFirst’s total office count to 52 across Mississippi and Alabama, with projected total assets of about $3.2 billion post-merger. This expansion aligns with BankFirst’s growth strategy and reinforces its commitment to community banking.
Moak Griffin, President and CEO of BankFirst, expressed enthusiasm about the merger, stating, “This strategic alliance reinforces our commitment to delivering exceptional customer service and financial solutions that meet the needs of our customers.” Griffin emphasized the potential positive impact on the communities they serve.
The deal has received unanimous approval from both companies’ boards of directors. However, it still requires approval from Magnolia’s shareholders and regulatory authorities. Notably, BankFirst shareholders will not need to vote on the transaction.
Kris Mangum, CEO of Magnolia State Bank, views the partnership as an opportunity to expand financial products and services while maintaining established customer relationships. Mangum will transition to the role of South Mississippi Regional President for BankFirst following the merger.
This acquisition comes on the heels of BankFirst’s recent financial performance. For the year 2024, the company reported revenue of $111.30 million and net income of $25.55 million. While these figures represent slight decreases from the previous year, BankFirst maintains a solid financial position with a price-to-earnings ratio of 9.82 as of March 14, 2025.
The banking sector has seen increased consolidation in recent years as institutions seek to expand their market share and improve operational efficiencies. This merger reflects that trend, positioning BankFirst for potential growth in an increasingly competitive landscape.
As of the announcement date, BankFirst’s stock was trading at $41.25, with a 52-week range of $32.95 to $42.00. The company also offers a dividend yield of 2.42%, with the last ex-dividend date on December 2, 2024.
The merger is anticipated to generate value for shareholders of both institutions and improve banking services for customers across the expanded network. As the financial sector continues to evolve, strategic moves such as this acquisition are likely to become more prevalent among regional banks seeking to bolster their market position.
