BankFirst Corp. Reports 1999 Earnings.

Business Editors

KNOXVILLE, Tenn.--(BUSINESS WIRE)--Jan. 14, 2000

BankFirst Corporation (Nasdaq: BKFR) (www.bankfirst.net) today reported record results for 1999. Fourth quarter net income was $2.32 million, compared to 1998 fourth quarter earnings of $1.95 million. Net income for the year increased 31 percent to $8.89 million versus $6.81 million in 1998. Diluted earnings per share for the period ending December 31, 1999 grew nineteen percent to 19 cents, compared to 16 cents for the same quarter last year.

At December 31, 1999, total consolidated assets were $813 million, compared to $748 million at December 31, 1998, an increase of nine percent. Total deposits reached $630 million, up two percent from $618 million one year ago. Net loans increased to $586 million, fifteen percent above December 1998 totals of $509 million. Total stockholders' equity at December 31, 1999 was $87 million compared to $83 million one year ago, an increase of four percent.

BankFirst Corporation is a financial services holding company headquartered in Knoxville, Tennessee. Its affiliate banks, BankFirst and First National Bank and Trust Company, provide full service financial services through offices in six East Tennessee counties. Knoxville-based BankFirst has 25 offices and 45 ATMs in Knox, Blount, Loudon, Sevier, and Jefferson counties. The First National Bank and Trust Company, based in Athens, has six offices and eight ATMs in McMinn County. The Company provides trust and brokerage services through BankFirst Trust Company, with mortgage services provided through Curtis Mortgage Company.

                         BANKFIRST CORPORATION
                     Financial Summary (Unaudited)
                   (In thousands except share data)


                    Three      Three            Twelve     Twelve
                    Months     Months           Months     Months
                    Ended      Ended     %      Ended      Ended     %
                   12/31/99   12/31/98 Change  12/31/99   12/31/98 Change
                   ------------------------------------------------------
Basic earnings
 per share           $ 0.20     $ 0.17   18%     $ 0.77     $ 0.64   20%
Diluted earnings
 per share             0.19       0.16   19%       0.73       0.59   24%

Net interest
 income               8,408      8,029    5%     33,472     30,988    8%
Provision for
 credit losses          594        322   84%      1,996      1,706   17%
Net securities
 gains (losses)           0         66 -100%         40        124  -68%
Total noninterest
 income               2,734      2,449   12%     10,737      9,303   15%
Total noninterest
 expense              7,089      7,391   -4%     28,821     28,218    2%
Provision for
 income taxes         1,138        813   40%      4,506      3,558   27%
Net income            2,321      1,952   19%      8,886      6,809   31%

Average balances:
Earning assets      730,393    663,866   10%    709,198    642,233   10%
Total assets        804,640    736,474    9%    782,302    703,826   11%
Stockholders'
 equity              86,381     82,250    5%     85,249     69,099   23%
Common shares
 outstanding     11,300,658 11,375,600   -1% 11,352,739 10,446,779    9%
Preferred shares
 outstanding        558,992    558,992    0%    558,992    635,516  -12%

Performance ratios:
Return on
 average assets        1.15%      1.06%   9%       1.14%      0.97%  17%
Return on
 average equity       10.75%      9.49%  13%      10.42%      9.85%   6%
Efficiency ratio      63.62%     70.99% -10%      65.25%     70.25%  -7%

End of Period balances:
Loans, net of
 unearned income                              $ 585,616  $ 508,552   15%
Allowance for

 credit losses                                    7,400      6,602   12%
Earning assets                                  737,949    677,397    9%
Total assets                                    812,899    748,301    9%
Total deposits                                  630,379    617,966    2%
Total liabilities                               726,373    665,460    9%
Stockholders'
 equity                                          86,526     82,841    4%
Mortgage loan
 servicing portfolio                            612,162    542,417   13%
Common shares
 outstanding                                 11,275,600 11,375,600   -1%
Preferred shares
 outstanding                                    181,050    181,050    0%
Book value
 per share                                         7.31       6.94    5%

Credit quality
 (end of period):
Nonperforming loans                             $ 6,242    $ 2,508  149%
Other real estate                                 1,893      1,290   47%
Net charge-offs                                   1,199      1,202    0%