BankFirst Corporation Reports Third Quarter Earnings.

KNOXVILLE, Tenn.--(BUSINESS WIRE)--Oct. 15, 1998--BankFirst Corporation (Nasdaq: BKFR) today reported third quarter earnings of $1.7 million, compared to 1997 third quarter earnings of $1.9 million. Year to date net income was $4.9 million versus $5.3 million for the first nine months of 1997. Diluted earnings per share for the period ending September 30, 1998 were 14 cents compared to 17 cents for the same quarter last year.

Total assets grew 14 percent, an increase of $90 million from September 30, 1997. Deposits now exceed $603 million, up 14 percent from $530 million one year ago. Net loans increased to $514 million, 13 percent above September 1997.

Management cited significant events occurring during the quarter as the completion of the Company's initial public offering, as well as the completion of the merger of BankFirst Corporation and First Franklin Bancshares, Inc. Current period and year to date earnings decreases were attributed to costs associated with the First Franklin Bancshares merger, the opening of three new branch facilities, and planned Year 2000 expenses.

BankFirst Corporation is a $723 million, multi-bank holding company headquartered in Knoxville, Tennessee. It operates 30 offices and 46 ATMs in six East Tennessee counties. Knoxville-based BankFirst has 24 offices and 40 ATMs in Knox, Blount, Loudon, Sevier, and Jefferson counties. The First National Bank and Trust Company, based in Athens, has six offices and six ATMs in McMinn County. -0-

                                 Three     Three      Nine       Nine
                                 Months    Months    Months     Months
                                 Ended     Ended     Ended      Ended
                                9/30/1998 9/30/1997 9/30/1998 9/30/1997
                               ----------------------------------------

Interest Income- tax equivalent  14,672    13,243     44,222    38,756
Interest Expense                  6,350     5,791     18,812    16,900
Net interest income               8,322     7,452     25,410    21,856
Provision for credit losses         323       376      1,390     1,096

Net securities gains                 47        83         49       132
Mortgage servicing \ gains          500        90      1,139       325
Service charges and fees          1,149     1,027      3,255     3,087
Trust revenue                       321       177        668       477
Other noninterest income            111       (44)       614       (83)
Total noninterest income          2,128     1,333      5,725     3,938

Salaries and employee benefits    3,879     2,718     11,024     8,382
Occupancy and equipment           1,236       959      3,638     2,569
Other noninterest expense         2,161     1,518      6,153     5,101
Total noninterest expense         7,276     5,195     20,815    16,052

Income before income taxes        2,851     3,214      8,930     8,646
Interest Income TEQ adjustment       91       136        695       404
Provision for income taxes        1,081     1,196      3,370     2,974
Net income                        1,679     1,882      4,865     5,268

Average common shares
 outstanding                 10,410,370 9,907,689 10,133,770 9,855,707
Basic EPS                          0.16      0.19       0.47      0.52
Diluted EPS                        0.14      0.17       0.43      0.49

Average balances:
Loans, net of unearned income   492,511   448,334    482,684   443,722
Total deposits                  604,566   532,067    577,647   524,450
Total assets                    710,531   625,695    691,341   623,320
Total Liabilities               645,056   567,791    627,971   564,591
Stockholders' equity             70,787    57,904     70,172    57,029

Performance ratios:
Return on average assets          0.95%     1.20%      0.94%     1.13%
Return on average equity          9.49%    13.00%      9.24%    12.32%
Efficiency ratio                 69.94%    59.70%     66.96%    62.55%

                                As Of      As Of
                              9/30/1998  9/30/1997
                             ----------------------
End of Period balances:
Loans, net of unearned income  514,334   455,175
Allowance for credit losses      6,795     4,887
Total deposits                 603,836   530,480
Total assets                   722,907   632,798
Total Liabilities              641,757   572,756
Stockholders' equity            81,150    60,042