SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

             QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended June 30, 2000

                        Commission file number 001-14417

                              BANKFIRST CORPORATION
             (Exact name of registrant as specified in its charter)

                       Tennessee                         58-1790903
            (State or other jurisdiction of            (IRS Employer
            incorporation or organization)           Identification No.)

                   625 Market Street

                 Knoxville, Tennessee                       37902
       (address of principal executive offices)           (Zip Code)

               Registrant's telephone number, including area code:
                                 (865) 595-1100

                          ----------------------------

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports)  and  (2)  has  been  subject  to such  filing
requirements for the past 90 days. Yes [X] No [ ]

The number of shares  outstanding of each of the registrant's  classes of common
stock as of July 31, 2000:

                    Title of Class                 Shares Outstanding
             Common Stock, $2.50 par value             11,050,669

<PAGE>

                              BANKFIRST CORPORATION
                                      INDEX
================================================================================

REPORT OF INDEPENDENT ACCOUNTANTS  ........................................   3
---------------------------------

PART I - FINANCIAL INFORMATION

         Item 1. Financial Statements......................................   4

         Item 2. Management's Discussion and Analysis of Financial
         Condition and Results of Operations...............................   9

         Item 3. Quantitative and Qualitative Disclosures about

         Market Risk.......................................................  16

PART II - OTHER INFORMATION

         Item 6. Exhibits and Reports on Form 8-K..........................  16

         Signatures........................................................  16


FORWARD-LOOKING STATEMENTS
================================================================================

The  information  disclosed in this  Quarterly  Report on Form 10-Q of BankFirst
Corporation (the "Company")  includes  various forward- looking  statements that
are made in reliance upon the safe harbor  provisions of the Private  Securities
Litigation  Reform  Act of  1995  with  respect  to  credit  quality  (including
delinquency  trends and the  allowance  for credit  losses),  the ability of the
Company and its vendors to adequately  address post-Year 2000 issues,  corporate
objectives,  and other financial and business matters.  The words "anticipates",
"projects",  "intends",  "estimates",  "expects",  "believes",  "plans",  "may",
"will",  "should",  "could",  and other  similar  expressions  are  intended  to
identify  such  forward-looking  statements.  The  Company  cautions  that these
forward-looking  statements are necessarily speculative and speak only as of the
date made, and are subject to numerous assumptions, risks and uncertainties, all
of which may change over time.  Actual results could differ materially from such
forward-looking statements.

In addition to the factors  disclosed by the Company elsewhere in this document,
the following factors, among others, could cause the Company's actual results to
differ materially and adversely from such  forward-looking  statements:  pricing
pressures  on loan  and  deposit  products;  competition;  changes  in  economic
conditions  nationally,  regionally and in the Company's markets; the extent and
timing of  actions of the  Federal  Reserve  Board;  changes in levels of market
interest  rates;  clients'  acceptance of the  Company's  products and services;
credit risks of lending activities and competitive  factors;  and the extent and
timing of legislative and regulatory actions and reforms.

The above-listed risk factors are not necessarily exhaustive, particularly as to
possible  future  events,  and new risk  factors  may emerge  from time to time.
Certain  events may occur that could cause the  Company's  actual  results to be
materially different than those described in the Company's periodic filings with
the  Securities and Exchange  Commission  ("SEC").  Any  statements  made by the
Company that are not historical facts should be considered to be forward-looking
statements.  The Company is not  obligated  to update and does not  undertake to
update any of its forward-looking statements made herein.

--------------------------------------------------------------------------------

<PAGE>

BankFirst Corporation
For the Quarter Ended June 30, 2000

                        REPORT OF INDEPENDENT ACCOUNTANTS

Board of Directors and Shareholders
BankFirst Corporation
Knoxville, Tennessee

We have reviewed the consolidated  balance sheet of BankFirst  Corporation as of
June 30, 2000, and the related consolidated statements of income for the quarter
and  year-to-date  periods  ended June 30, 2000 and 1999,  and the  consolidated
statements  of  changes  in   stockholders'   equity  and  cash  flows  for  the
year-to-date  periods ended June 30, 2000 and 1999.  These financial  statements
are the responsibility of the Company's management.

We conducted our review in accordance with standards established by the American
Institute  of  Certified  Public  Accountants.  A review  of  interim  financial
information consists principally of applying analytical  procedures to financial
data and making  inquiries of persons  responsible  for financial and accounting
matters. It is substantially less in scope than an audit conducted in accordance
with  generally  accepted  auditing  standards,  the  objective  of which is the
expression of an opinion regarding the financial statements taken as a whole.
Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material  modifications that should
be made to the  accompanying  financial  statements for them to be in conformity
with generally accepted accounting principles.

                                                   Crowe, Chizek and Company LLP

Louisville, Kentucky
August 7, 2000


                                                     BankFirst Corporation  |  3
<PAGE>

Part I.-Financial Information
Item 1.- Financial Statements

Consolidated Balance Sheets
BankFirst Corporation
(Dollar amounts in  thousands except share data)

<TABLE>
<CAPTION>
                                                                                      June 30,    Dec. 31,
                                                                                        2000        1999
===========================================================================================================
                                                                                    (Unaudited)
<S>                                                                                 <C>          <C>
ASSETS
  Cash and due from banks .......................................................   $  32,922    $  36,039
  Federal Funds Sold ............................................................           0            0
                                                                                    ---------    ---------
       Total cash and cash equivalents ..........................................      32,922       36,039

  Securities available for sale .................................................     152,074      133,596
  Mortgage loans held for sale ..................................................      12,027       12,205
  Loans, net of allowance for credit losses of $7,638 and $7,400  ...............     596,211      578,216
  Premises and equipment, net ...................................................      28,059       26,814
  Mortgage servicing rights .....................................................       8,927        8,896
  Federal Home Loan Bank Stock, at cost .........................................       3,543        3,420
  Intangible assets .............................................................       1,766        1,845
  Accrued interest receivable and other assets ..................................      13,278       11,868
                                                                                    ---------    ---------
     Total assets ...............................................................   $ 848,807    $ 812,899
                                                                                    =========    =========

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
  Noninterest-bearing deposits ..................................................   $ 111,095    $ 105,079
  Interest-bearing deposits .....................................................     547,600      525,300
                                                                                    ---------    ---------
       Total deposits ...........................................................     658,695      630,379
  Securities sold under agreements to repurchase ................................      24,074       32,103
  Federal funds purchased and other borrowings ..................................      23,830       27,500
  Advances from the Federal Home Loan Bank ......................................      46,091       29,159
  Accrued interest payable and other liabilities ................................       8,184        7,232
                                                                                    ---------    ---------
       Total liabilities ........................................................     760,874      726,373

Stockholders' equity
  Common stock:  $2.50 par value, 30,000,000 shares authorized,
     11,047,950 and 11,275,600 shares outstanding, respectively .................      27,620       28,189
  Noncumulative convertible preferred stock:  $5 par value,
     1,000,000 shares authorized, 181,050 shares outstanding ....................         905          905
  Additional paid-in capital ....................................................      32,150       33,448
  Retained earnings .............................................................      29,457       25,914
  Accumulated other comprehensive income (loss) .................................      (2,199)      (1,930)
                                                                                    ---------    ---------
     Total stockholders' equity .................................................      87,933       86,526
                                                                                    ---------    ---------
     Total liabilities and stockholders' equity .................................   $ 848,807    $ 812,899
                                                                                    =========    =========
</TABLE>

================================================================================
                             See accompanying notes.


                                                     BankFirst Corporation  |  4
<PAGE>

Consolidated Statements of Income
BankFirst Corporation
(Dollar amounts in thousands except share data)
(Unaudited)

<TABLE>
<CAPTION>
                                                         Three months ended      Six months ended
                                                               June 30,              June 30,
                                                          2000        1999      2000          1999
===================================================================================================
<S>                                                     <C>        <C>         <C>        <C>
Interest income
    Interest and fees on loans ......................   $ 13,987   $ 12,498    $ 27,567   $ 24,394
    Taxable securities ..............................      1,787      1,513       3,405      2,892
    Nontaxable securities ...........................        484        410         961        823
    Other ...........................................        153        140         247        359
                                                        --------   --------    --------   --------
                                                          16,411     14,561      32,180     28,468
Interest expense
    Deposits ........................................      6,521      5,378      12,641     10,691
    Federal funds purchased and repurchase agreements        563        444       1,113      1,009
    Federal Home Loan Bank advances and other debt ..        685        386       1,225        463
                                                        --------   --------    --------   --------
                                                           7,769      6,208      14,979     12,163
                                                        --------   --------    --------   --------

Net interest income .................................      8,642      8,353      17,201     16,305

Provision for credit losses .........................        572        461       1,145        880
                                                        --------   --------    --------   --------
Net interest income after provision for credit losses      8,070      7,892      16,056     15,425

Noninterest income
    Service charges and fees ........................      1,185      1,184       2,302      2,286
    Net securities gains (losses) ...................          6        (26)          6         10
    Net gain (loss) on loan sales ...................        727      1,019       1,251      1,909
    Loan servicing income, net of amortization ......        317         33         596        153
    Trust fee income ................................        334        261         749        525
    Other ...........................................        268        474         476        662
                                                        --------   --------    --------   --------
                                                           2,837      2,945       5,380      5,545
Noninterest expense
    Salaries and employee benefits ..................      4,071      4,092       8,016      8,077
    Occupancy expense ...............................        593        537       1,094      1,052
    Equipment expense ...............................        631        707       1,264      1,366
    Office expense ..................................        515        479         978        935
    Data processing .................................        471        441         919        834
    Advertising .....................................        227        210         348        342
    Other ...........................................      1,111      1,017       2,218      1,894
                                                        --------   --------    --------   --------
                                                           7,619      7,483      14,837     14,500
                                                        --------   --------    --------   --------

Income before income taxes ..........................      3,288      3,354       6,599      6,470
Provision for income taxes ..........................      1,026      1,152       2,102      2,199
                                                        --------   --------    --------   --------
Net Income ..........................................   $  2,262   $  2,202    $  4,497   $  4,271
                                                        ========   ========    ========   ========

Comprehensive income ................................   $  2,197   $    373    $  4,228   $  1,492

Earnings per share:
    Basic ...........................................   $   0.20   $   0.19    $   0.40   $   0.37
    Diluted .........................................   $   0.19   $   0.17    $   0.38   $   0.34
</TABLE>

================================================================================
                             See accompanying notes.


                                                     BankFirst Corporation  |  5
<PAGE>

Consolidated Statements of Changes in Stockholders' Equity
BankFirst Corporation
(Dollar amounts in thousands except share data)
(Unaudited)

<TABLE>
<CAPTION>
                                                                                                 Accumulated
                                                                       Additional                   Other          Total
                                                Common     Preferred    Paid-in     Retained    Comprehensive   Stockholders'
                                                Stock        Stock      Capital     Earnings        Income         Equity
                                               --------    --------    --------     --------    -------------   -------------
<S>                                            <C>          <C>        <C>          <C>           <C>            <C>
PERIOD ENDED JUNE 30, 1999

Balance, January 1, 1999                       $ 28,439     $  905     $ 34,093     $ 17,160      $  2,244       $ 82,841

Cash dividend on preferred stock                     --         --           --          (65)           --            (65)

Comprehensive income (loss):
  Net income                                         --         --           --        4,271            --          4,271

  Change in unrealized gains (losses),
    net of reclassification                          --         --           --           --        (2,779)        (2,779)
                                                                                                                 --------
Total comprehensive income                                                                                          1,492
                                               --------     ------     --------     --------      --------       --------
Balance, June 30, 1999                         $ 28,439     $  905     $ 34,093     $ 21,366      $   (535)      $ 84,268
                                               ========     ======     ========     ========      ========       ========
</TABLE>


<TABLE>
<CAPTION>
                                                                                                 Accumulated
                                                                       Additional                   Other          Total
                                                Common     Preferred    Paid-in     Retained    Comprehensive   Stockholders'
                                                Stock        Stock      Capital     Earnings        Income         Equity
                                               --------    --------    --------     --------    -------------   -------------
<S>                                            <C>          <C>        <C>          <C>           <C>            <C>
PERIOD ENDED JUNE 30, 2000

Balance, January 1, 2000                       $ 28,189      $  905    $ 33,448     $ 25,914      $ (1,930)      $ 86,526

Cash dividend on preferred stock                     --          --          --          (66)           --            (66)

Cash dividend on common stock                        --          --          --         (888)           --           (888)

Repurchase of common stock,
227,650 shares                                     (569)         --      (1,298)          --            --         (1,867)

Comprehensive income:
  Net income                                         --          --          --        4,497            --          4,497

  Change in unrealized gains
    (losses), net of reclassification                --          --          --           --          (269)          (269)
                                                                                                                 --------
     Total comprehensive income                                                                                     4,228
                                               --------      ------    --------     --------      --------       --------
Balance, June 30, 2000                         $ 27,620      $  905    $ 32,150     $ 29,457      $ (2,199)      $ 87,933
                                               ========      ======    ========     ========      ========       ========
</TABLE>

================================================================================
                             See accompanying notes.


                                                     BankFirst Corporation  |  6
<PAGE>


Consolidated Statements of Cash Flows
BankFirst Corporation
(Dollar amounts in thousands)
(Unaudited)

<TABLE>
<CAPTION>
                                                                                   Six months ended
                                                                                        June 30,
                                                                                   2000        1999
======================================================================================================
<S>                                                                             <C>          <C>
Cash flows from Operating Activities
   Net income ...............................................................   $   4,497    $   4,271
   Adjustments to reconcile net income to net cash from operating activities:
     Provision for credit losses ............................................       1,145          880
     Depreciation ...........................................................       1,174          909
     Amortization of mortgage servicing rights ..............................         580          870
     Amortization and accretion of securities, net ..........................           2           56
     Net (gains) losses on securities sales .................................          (6)         (10)
     Net (gains) losses on sales of mortgage loans ..........................      (1,251)      (1,909)
     Proceeds from sales of mortgage loans held for sale ....................      54,402      111,004
     Purchases of mortgage loans held for sale ..............................      (6,443)     (19,286)
     Originations of mortgage loans held for sale ...........................     (47,781)     (79,439)
Changes in assets and liabilities
       Accrued interest receivable and other assets .........................      (1,410)        (580)
       Accrued interest payable and other liabilities .......................         952       (1,432)
                                                                                ---------    ---------
Net cash flows from operating activities ....................................       5,861       15,334

Cash flows from investing activities
   Purchase of securities ...................................................     (32,881)     (39,150)
   Proceeds from maturities of securities ...................................      13,712       17,338
   Proceeds from sales of securities ........................................          --       12,760
   Net increase in loans ....................................................     (17,995)     (43,394)
   Purchase of FHLB stock ...................................................        (123)        (112)
   Premises and equipment expenditures, net .................................      (2,419)      (1,896)
                                                                                ---------    ---------
Net cash flows from investing activities ....................................     (39,706)     (54,454)

Cash flows from financing activities
   Net change in deposits ...................................................      28,316         (859)
   Net change in repurchase agreements and other borrowings .................     (11,699)      10,043
   Advances from the FHLB ...................................................      17,000       27,339
   Repayments of advances to the FHLB .......................................         (68)     (10,000)
Dividends paid ..............................................................        (954)         (65)
Repurchase of common stock ..................................................      (1,867)          --
                                                                                ---------    ---------
Net cash flows from financing activities ....................................      30,728       26,458

Net change in cash and cash equivalents .....................................      (3,117)     (12,662)

Cash and cash equivalents, beginning of period ..............................      36,039       44,986
                                                                                ---------    ---------
Cash and cash equivalents, end of period ....................................   $  32,922    $  32,324
                                                                                =========    =========

Supplemental disclosures:
   Interest paid ............................................................   $  14,299    $  11,777
   Income taxes paid ........................................................       2,591        1,665
   Loans converted to other real estate .....................................          --           --
</TABLE>

================================================================================
                             See accompanying notes.


                                                     BankFirst Corporation  |  7
<PAGE>


Notes to Consolidated Financial Statements
BankFirst Corporation

Basis of Presentation of the Consolidated Financial Statements
================================================================================

Principles of Consolidation:  The consolidated  financial statements include the
accounts of BankFirst Corporation and its principal  wholly-owned  subsidiaries,
BankFirst,  The First National Bank and Trust Company  (together  referred to as
the "Banks"),  BankFirst Trust Company, and BankFirst's wholly-owned subsidiary,
Curtis  Mortgage  Company,  collectively  referred  to  as  the  "Company".  All
significant  inter-company  balances and  transactions  have been  eliminated in
consolidation.

The accompanying  unaudited consolidated financial statements have been prepared
in  accordance  with  generally  accepted  accounting   principles  for  interim
financial  information,   and  accordingly  they  do  not  include  all  of  the
information and footnotes required by generally accepted  accounting  principles
for complete financial statements. In the opinion of management, all adjustments
(consisting  of  normal  recurring  accruals)  considered  necessary  for a fair
presentation  have been included.  Operating results for the three and six month
periods ended June 30, 2000 are not  necessarily  indicative of the results that
may be expected for the year ended December 31, 2000.

Borrowings:  Repurchase  agreements  and Federal  Funds  purchased are generally
overnight  borrowings.  Federal  Home Loan Bank  ("FHLB")  advances  consist  of
variable rate advances  that mature  within one year,  and fixed rate  long-term
advances with maturity dates that exceed one year.

Reclassifications:  Certain  items in the 1999  financial  statements  have been
reclassified to conform to the 2000 presentation.

Computation of Earnings Per Share
================================================================================

Basic earnings per share is based on weighted average common shares outstanding.
Diluted  earnings per share further assumes  issuance of any dilutive  potential
common  shares.  Earnings  per  share  are  restated  for all  subsequent  stock
dividends and splits.

A  reconciliation  of the numerators and denominators of the earnings per common
share and earnings per common share assuming dilution computations are presented
below (in thousands, except share data):

<TABLE>
<CAPTION>
                                                                   Three months ended              Six months ended
                                                                        June 30,                        June 30,
                                                                  2000           1999           2000              1999
                                                                  ----           ----           ----              ----
<S>                                                          <C>             <C>             <C>             <C>
BASIC
Net income ...............................................   $      2,262    $      2,202    $      4,497    $      4,271
Less:  dividends declared on preferred stock .............            (33)            (33)            (66)            (65)
                                                             ------------    ------------    ------------    ------------
Net income available to common stockholders ..............   $      2,229    $      2,169    $      4,431    $      4,206
                                                             ============    ============    ============    ============
Average common shares outstanding ........................     11,095,498      11,375,600      11,162,104      11,375,600
Earnings per share .......................................   $       0.20    $       0.19    $       0.40    $       0.37

DILUTED
Net income available to common stockholders ..............   $      2,229    $      2,169    $      4,431    $      4,206
Add:  dividends upon assumed conversion of preferred stock             33              33              66              65
                                                             ------------    ------------    ------------    ------------
Net income available to common
   stockholders assuming conversion ......................   $      2,262    $      2,202    $      4,497    $      4,271
                                                             ============    ============    ============    ============

Weighted average common shares outstanding ...............     11,095,498      11,375,600      11,162,104      11,375,600
Weighted average dilutive convertible preferred stock ....        558,992         558,992         558,992         558,992
Dilutive common stock options at average market price ....        227,144         372,422         231,691         389,380
                                                             ------------    ------------    ------------    ------------
Weighted average diluted shares outstanding ..............     11,881,634      12,307,014      11,952,787      12,323,972
                                                             ============    ============    ============    ============

Earnings per share assuming dilution .....................   $       0.19    $       0.17    $       0.38    $       0.34
</TABLE>


                                                     BankFirst Corporation  |  8
<PAGE>

Item 2.
Management's Discussion and Analysis of Financial Condition and Results of
Operations
BankFirst Corporation

Overview

The  following   discussion   and  analysis  is  presented  to  facilitate   the
understanding of the consolidated  financial  position and results of operations
of BankFirst  Corporation.  The  consolidated  financial  information  discussed
herein primarily reflects the activities of the Company's wholly-owned community
bank subsidiaries, BankFirst ("BankFirst") and The First National Bank and Trust
Company ("FNB"), as well as the Company's BankFirst Trust Company subsidiary and
BankFirst's  mortgage  subsidiary,   Curtis  Mortgage  Company.  The  discussion
identifies trends and material changes that occurred during the reported periods
and should be read in conjunction with the consolidated financial statements and
accompanying notes appearing  elsewhere herein. The periods included within this
document  are the three  months and six months  ended June 30, 2000 and June 30,
1999.

BankFirst  Corporation  is a bank holding  company  headquartered  in Knoxville,
Tennessee that focuses on meeting the banking needs of East Tennessee businesses
and residents through a relationship-oriented, community bank business strategy.
The  Company  conducts  its banking  business  through  BankFirst,  which has 26
offices in Knox, Sevier, Blount, Loudon and Jefferson Counties, and through FNB,
with six offices in McMinn County. The Company's operations  principally involve
commercial and residential  real estate lending,  commercial  business  lending,
consumer lending,  mortgage servicing,  construction lending and other financial
services,  including  trust  operations,  credit  card  services  and  brokerage
services.

Financial Condition

Total assets grew from $813 million at year-end 1999 to $849 million at June 30,
2000, a $36 million increase.  This asset growth occurred  primarily in loans of
$18 million and  securities of $18 million.  The Company's June 30, 2000 balance
sheet reflects a growth of $28 million in deposits achieved through  competitive
product pricing. The Company used this deposit increase by funding the growth in
loans and the purchases of securities. The Company also restructured its overall
short-term  borrowing  position by increasing Federal Home Loan Bank advances by
$17 million and reducing  repurchase  agreements and federal funds by a total of
$12 million.

The  Company's  deposit base and, to a lesser  degree its loan demand,  are both
influenced by seasonal demands from its commercial customers.  Accordingly,  the
Company maintains a short-term liquidity strategy to accommodate seasonal needs.
On a year-to-date ("YTD") average basis, total deposits grew by $25 million from
year-end 1999. This deposit growth was used to fund a YTD growth in loans of $16
million and to reduce over-all short-term borrowings by $8 million from year-end
1999. As customer loan and deposit needs  fluctuate,  short-term  borrowings are
appropriately adjusted.

From year-end 1999 to June 30, 2000, total stockholders'  equity increased by $1
million,  consisting  of net  earnings of over $4 million,  less  preferred  and
common stock cash  dividends  of nearly $1 million,  and less  approximately  $2
million for the repurchase of 227,650 shares of the Company's  common stock,  as
described in the next paragraph.

On January 11, 2000 the Company  approved a stock  repurchase plan to acquire up
to 500  thousand  shares  of its  common  stock.  The  recently  approved  stock
repurchase  plan  follows a previous 100 thousand  share stock  repurchase  plan
completed during the second half of 1999. Management  repurchased 113,950 shares
of the approved 500 thousand share buyback by the end of the first quarter 2000,
purchased another 113,700 shares during the second quarter, and is authorized to
repurchase the remaining 272,350 shares of common stock on the open market.  The
Company will continue to monitor market conditions of its common stock to assess
the most logical deployment of its capital.

Management  expects the Company's growth to continue through expansion of retail
locations,  expansion of products and  services,  including  mortgage  servicing
opportunities by Curtis Mortgage  Company and trust services  through  BankFirst
Trust Company, and possible future mergers or acquisitions,  although no mergers
or acquisitions  are currently  pending.  Although the Company's  growth rate in
total assets  during the last twelve months was  approximately  10%, this growth
trend has  slowed  during  the  second  quarter  of 2000,  and will very  likely
continue  to slow over the  remainder  of 2000 due to the  effects of the recent
short-term interest rate increases announced by the Federal Reserve Bank.


                                                     BankFirst Corporation  |  9
<PAGE>

Management's Discussion and Analysis of Financial Condition and Results of
Operations
BankFirst Corporation

Results of Operations

Net  income  increased  5% to $4.5  million  for the first six months of 2000 as
compared to $4.3 million for the same period last year. Net interest income on a
tax  equivalent  basis was  $17.5  million,  representing  an  approximate  $800
thousand  or 5%  increase  for the first six months of 2000 from the  comparable
1999  period.  The  year-over-year  increase  in net  interest  income  was  due
primarily to an increase in total  average  earning  assets and a  proportionate
increase of earning  assets  invested in loans,  which  represent  the Company's
highest yielding assets.

The  Company's  net interest  spread and net  interest  margin for the first six
months of 2000 were  3.80% and 4.51%,  respectively,  as  compared  to 3.94% and
4.85%,  respectively,  for the same  period  last year.  The trend over the last
twelve  months  has been that the  Company's  margin and  spread  have  declined
slightly due to competitive  pressures on loan rates and higher costs associated
with borrowing costs of funds, such as interest-bearing deposits, federal funds,
and FHLB advances.  This trend of competitive  pressures is expected to continue
into the foreseeable future.

Although  the  Company's  net  interest  spread  and net  interest  margin  have
declined,  actual  dollars of net interest  income have  increased from a higher
volume of  earning  assets.  The  growth in  earning  assets  (which  are mostly
comprised  of loans) have  slowed from  historical  growth  patterns  due to the
delayed effects of recent  short-term  Federal Reserve Bank interest rate hikes.
In  addition,  during  the  first  quarter  of 2000 the  Company  maintained  an
aggressive loan pricing  strategy to combat intense  competition.  This strategy
was successful in retaining existing relationships and attracting new customers,
although the yields on the respective  loans were below historical  levels.  The
Company changed its pricing  structure  during the second quarter of 2000 and is
currently  pricing its loans in order to maintain a higher net  interest  spread
than during the previous quarter.  This strategy may very likely slow the growth
rate of its loan  portfolio,  but  should  increase  net  interest  income  as a
percentage of total assets.

Noninterest Income

Noninterest  income of $5.4  million  for the first six months of 2000  compared
almost  evenly with $5.5  million  for the same  period  last year.  Some select
components of noninterest  income include  service charges and fees generated by
the two bank affiliates,  income from sales of mortgage loans and loan servicing
through Curtis Mortgage Company, and trust fee income produced through BankFirst
Trust Company.  YTD comparisons of these select components of noninterest income
are described in more detail below.

An analysis of noninterest  income  reflects  virtually no change in earnings on
service  charges  and  related  fees,  which were $2.3  million  for each of the
six-month periods ending June 30, 1999 and 2000. Intense market competition from
other financial  institutions,  as well as nonbank competition such as brokerage
firms, are causing pressure on this component of noninterest income.

Gains on loan sales  decreased  from $1.9 million for the six months ending June
30, 1999 to $1.3 million for the six months  ending June 30, 2000.  The interest
rate increases  initiated by the Federal Reserve Board during 1999 and 2000 have
attributed  to a reduction in the volume of  originations  of  secondary  market
loans.  However,  gains on loan  sales  during the first six months of 2000 were
positively  impacted by the Company's  short-term strategy to sell approximately
$24  million  of  originated  loans   servicing-released.   The  sale  of  loans
servicing-released  generally  results in higher gains at the time of sale,  but
will have a negative  impact on future  loan  servicing  income  streams.  After
accounting for this $24 million sale,  the Company's  loan  servicing  portfolio
balance  at  June  30,  2000  was   approximately   $610  million   compared  to
approximately  $612 million at December 31, 1999.  The Company will  continue to
sell a portion of loans  servicing-released as needed, while continuing to build
the loan servicing portfolio.

Loan servicing income (net of amortization)  during the first six months of 2000
was $600 thousand,  compared to $200 thousand for the same period in 1999.  This
change was mainly attributable to the effect of recognizing amortization expense
over a longer  period of time from slower loan  prepayments.  Given the expected
continued increase in interest rates,  management  believes the secondary market
loan volumes and  prepayments  over the next several months will further decline
from existing levels.


                                                     BankFirst Corporation  | 10
<PAGE>

Management's Discussion and Analysis of Financial Condition and Results of
Operations

BankFirst Corporation

Noninterest  income  from trust fees  increased  40% from $500  thousand to $700
thousand  when  comparing the six months ending June 30, 1999 to the same period
in 2000. The BankFirst Trust Company is managing $354 million of trust assets as
of June 30, 2000 as compared to $322 million for the same period last year.

Noninterest Expense

Noninterest  expense  increased $300 thousand to $14.8 million for the first six
months of 2000 over the  comparable  1999  period.  The  primary  components  of
noninterest  expense are salaries and benefits,  occupancy and  equipment,  data
processing,  and an "other"  noninterest  expense category that captures various
expenses not normally itemized on financial statements.

Salaries  and benefits  represent  the  Company's  largest  noninterest  expense
component.  The  cost to hire,  train,  and  maintain  a  workforce  of over 400
full-time and part-time employees is substantial.  The Company's personnel costs
through  the first six  months of 2000 were $8.0  million,  unchanged  from $8.0
million for the same period last year.  Although  this expense  category did not
increase based upon a  year-over-year  comparison,  the Company  expects to hire
additional  personnel  to  staff  four  new  branch  locations  currently  under
development.  This branch expansion strategy, coupled with a tight labor market,
inflationary  pressures,  and competitive  pressures,  will most likely cause an
upward trend in this noninterest  expense  category  throughout the remainder of
the year.

Occupancy  expense,  office and  equipment  expense,  and data  processing  fees
collectively accounted for $4.3 million of noninterest expense for the first six
months of 2000,  compared to $4.2 million for the same period last year.  Again,
it is anticipated that inflationary  pressures and an expansion into new markets
will put upward pressure on these expenses.

The "Other Noninterest  Expense" category reflects  year-to-date expense of $2.2
million,  an increase of $300 thousand for the first six months of 2000 over the
same  period in 1999.  This  category  includes  expenses  for loan and  deposit
processing fees, travel,  professional  fees,  charitable  contributions,  check
losses,  and other  miscellaneous  expenses.  The increase in other  noninterest
expense from year to year was due to normal, recurring expense activity.

Provision for Credit Losses and Asset Quality

The  provision  for credit  losses was $1.1  million for the first six months of
this year,  compared to $900  thousand  for the same period in 1999.  The higher
provision  expense on a  period-over-period  comparative basis was mainly due to
providing  allowance for loan losses on the growing loan portfolio.  The Company
experienced net charge-offs  (i.e.,  gross  charge-offs less recoveries) of $906
thousand during the first six months of 2000,  compared to $379 thousand for the
same period last year.  The ratio of net  charge-offs  to average  loans for the
first six months of both 1999 and 2000 is less than 0.3%.

The recorded  values of loans  actually  removed from the  consolidated  balance
sheets are referred to as  charge-offs  and,  after  netting out  recoveries  on
previously  charged-off assets, become net charge-offs.  The Company's policy is
to  charge  off  loans  when,  in  management's  opinion,  the  loan  is  deemed
uncollectible, although concerted efforts are made to maximize recovery.


                                                     BankFirst Corporation  | 11
<PAGE>

Management's Discussion and Analysis of Financial Condition and Results of
Operations

With the escalation of concern about credit quality throughout the industry, the
Company  has  taken  a  proactive  stance  regarding  its  loan  quality.  Total
nonperforming  loans  (consisting of nonaccruals  and loans 90 days or more past
due) as of June 30,  2000 were  $5.5  million  compared  to $6.2  million  as of
December  31,  1999.  Other  real  estate  owned   (including   non-real  estate
repossessions)  at June 30, 2000 was $1.2 million as compared to $1.9 million as
of December 31,  1999.  Included in  nonperforming  loans is one credit for $2.5
million  that was  foreclosed  in July 2000 and  subsequently  reflected  in the
"other real estate owned" category.

The provision for credit losses represents  charges made to earnings to maintain
an adequate  allowance for loan losses and other credit losses. The allowance is
maintained  at an amount  believed to be sufficient to absorb losses in the loan
portfolio. Factors considered in establishing an appropriate allowance include a
careful  assessment  of the  financial  condition of the  borrower;  a realistic
determination of the value and adequacy of underlying collateral;  the condition
of the local economy and the condition of the specific industry of the borrower;
a  comprehensive  analysis  of the levels and trends of loan  categories;  and a
review of delinquent  and  classified  loans.  The Company  applies a systematic
process for determining the adequacy of the allowance for loan losses  including
an internal loan review  function and a monthly  analysis of the adequacy of the
allowance.  The monthly analysis  includes  determination of specific  potential
loss factors on individual  classified loans,  historical potential loss factors
derived from actual net charge-off experience and trends in nonperforming loans,
and  potential  loss  factors  for  other  loan  portfolio  risks  such  as loan
concentrations, local economy, and the nature and volume of loans.

Management will continue to monitor its markets and take a conservative position
regarding credit quality. Refer to the Company's 1999 Annual Report on Form 10-K
under the "Nonperforming Assets" section of Management's Discussion and Analysis
of Financial Condition and Results of Operations, for further analysis.

The
provision

<TABLE>
<CAPTION>
                                                                 Nonperforming Assets
                                                                    (in thousands)
                                                   June 30    Mar. 31  Dec. 31  Sept. 30   June 30
                                                    2000       2000     1999      1999      1999
                                                    ----       ----     ----      ----      ----
<S>                                                <C>        <C>      <C>       <C>       <C>
Principal balance
     Nonaccrual ................................   $4,014     3,946    $3,981    $3,017    $  534
     90 days or more past due and still accruing    1,483     2,800     2,261     1,173     2,535
                                                   ------     -----    ------    ------    ------
         Total nonperforming loans .............   $5,497    $6,746    $6,242    $4,190    $3,069
                                                   ======    ======    ======    ======    ======

     Nonperforming loans as a percent of loans .     0.91%     1.14%     1.07%     0.73%     0.56%

     Other real estate owned ("OREO") ..........   $1,196    $1,963    $1,893    $  814    $1,039

     OREO as a percent of loans ................     0.20%     0.33%     0.32%     0.14%     0.19%

     Allowance as a percent of
     nonperforming loans .......................   138.96%   112.56%   118.55%   176.13%   231.44%
</TABLE>


                                                     BankFirst Corporation  | 12
<PAGE>

Management's Discussion and Analysis of Financial Condition and Results of
Operations

BankFirst Corporation

Liquidity and Capital Adequacy

Liquidity management is both a daily and long-term responsibility of management.
The Company  adjusts its  investments  in liquid  assets and long and short term
borrowings,  based upon  management's  consideration  of expected  loan  demand,
expected  deposit flows and securities  sold under  repurchase  agreements.  The
Company  believes it has the ability to raise deposits quickly within its market
area by slightly  raising interest rates, but has typically been able to achieve
deposit growth without paying above market interest rates.  The current strategy
calls for the  subsidiary  banks to be no higher  than  second  highest in their
pricing as compared to their primary competitors. Deposit growth has funded most
of the  significant  asset growth in the past several  years,  but has decreased
modestly as a percent of total funding.

The Company actively solicits customer cash management  relationships that often
include a  securities  repurchase  agreement  feature.  Under these  agreements,
commercial  customers are able to generate  earnings on otherwise  idle funds on
deposits with the subsidiary banks. These accounts are considered volatile under
regulatory  requirements,  although  the  Company  has found them to be a steady
source of funding. The Company has been able to maintain customer  relationships
because of its strong business lending  program.  While more costly than deposit
funding,  these deposit-related  accounts are typically the lowest cost borrowed
funds available to the Company.

The primary source of capital for the Company is retained  earnings.  During the
first six months of 2000,  the Company had net  earnings of $4.5  million,  paid
cash  dividends of $66 thousand to  shareholders  of  noncumulative  convertible
preferred  stock,  paid  initial  annual  cash  dividends  of $888  thousand  to
shareholders of common stock,  and  repurchased  227,650 shares of the Company's
common stock (as described  previously in the "Financial  Condition"  section of
this Management's  Discussion and Analysis of Financial Condition and Results of
Operations) at an  approximate  cost of $1.9 million.  The Company  retained the
remaining $1.7 million of earnings as an increase to its capital base.

The Company and its subsidiaries are subject to regulatory capital  requirements
administered by federal and state banking agencies.  Capital adequacy guidelines
and prompt  corrective  action  regulations  involve  quantitative  measures  of
assets,  liabilities,  and  certain  off-balance  sheet items  calculated  under
regulatory  accounting  practices.  The  prompt  corrective  action  regulations
provide   five   classifications,   including   well   capitalized,   adequately
capitalized, under-capitalized,  significantly under-capitalized, and critically
under-capitalized,  although  these  terms  are not  used to  represent  overall
financial condition. If under-capitalized,  capital distributions,  asset growth
and expansion are limited, and plans for capital restoration are required.

Under  guidelines  issued  by  banking  regulators,  the  Company  and its  bank
subsidiaries are required to maintain a minimum Tier 1 risk-based  capital ratio
of 4% and a minimum total  risk-based  ratio of 8%.  Risk-based  capital  ratios
weight the relative risk factors of all assets and consider the risk  associated
with off-balance sheet items.

The  Company's  Tier 1 risk-based  and total  risk-based  ratios were 13.37% and
14.48%,  respectively,  as  of  June  30,  2000.  Both  bank  subsidiaries  also
individually met the definition of "well capitalized" as of June 30, 2000.


                                                     BankFirst Corporation  | 13
<PAGE>

Management's Discussion and Analysis of Financial Condition and Results of
Operations

BankFirst Corporation

Market Risk

The Company uses an earnings  simulation model (summarized below) to analyze net
interest  income  sensitivity.  Potential  changes in market  interest rates and
their  subsequent  effects  on  interest  income are then  evaluated.  The model
projects the effects of instantaneous movements in interest rates of 100 and 200
basis points.

The  assumptions  used  in the  market  risk  simulation  model  are  inherently
uncertain  and, as a result,  the model  cannot  precisely  measure net interest
income or precisely  predict the impact of fluctuations in market interest rates
on net interest  income.  Actual results will differ from the model's  simulated
results due to timing, magnitude and frequency of interest rate changes, as well
as changes  in market  conditions  and the  application  of  various  management
strategies.  See the previous  discussion  concerning  interest  rate margin and
interest rate spread in the "Results of Operations" section of this Management's
Discussion and Analysis of Financial Condition and Results of Operations.

Even though the Company's  cumulative gap at one year is negative,  the earnings
simulation  model  indicates  that an increase in interest  rates of 100 and 200
basis points would result in increased  net interest  income of $629 thousand (a
1.79%  increase from a flat rate  scenario)  and $1.3 million (a 3.58%  increase
from flat rates), respectively.  This occurs because management believes that if
overall  market  interest  rates  increase,  the  market  would not  require  an
immediate,  corresponding repricing of non-term deposit liabilities.  A decrease
in interest  rates of 100 and 200 basis points  would  result in  decreased  net
interest  income of $626  thousand (a 1.78%  decrease  from flat rates) and $1.2
million (a 3.41% decrease from flat rates), respectively.

The Company's  cumulative gap at one year as of December 31, 1999 indicated that
an  increase  in  interest  rates of 100 and 200 basis  points  would  result in
increased  net interest  income of $306  thousand (a 0.85%  increase from a flat
rate   scenario)  and  $594  thousand  (a  1.66%   increase  from  flat  rates),
respectively.  A decrease  in interest  rates of 100 and 200 basis  points as of
December 31, 1999 would result in decreased net interest income of $251 thousand
(a 0.70% decrease from flat rates) and $439 thousand (a 1.22% decrease from flat
rates), respectively.

                              Market Risk Analysis
                                at June 30, 2000

<TABLE>
<CAPTION>
                                                           Decrease in Rates                          Increase in Rates
                                                        ----------------------                      --------------------
                                                          200             100                          100          200
                                                         Basis           Basis          Level         Basis        Basis
                                                        Points          Points          Rates        Points       Points
<S>                                                     <C>             <C>            <C>          <C>          <C>
Projected Interest Income
  Loans                                                 $53,698         $56,516        $59,333      $62,151      $64,969
  Investments                                             9,886          10,024         10,163       10,300       10,440
  Federal Funds Sold                                      1,464           1,665          1,867        2,071        2,276
                                                        ----------------------------------------------------------------
       Total Interest Income                             65,048          68,205         71,363       74,522       77,685

Projected Interest Expense
  Deposits                                              $26,048         $28,042        $29,987      $31,931      $33,876
  FHLB Term Advances                                      2,484           2,778          3,074        3,369        3,665
  Fed Funds Purchased & Other Borrowings                  2,523           2,817          3,108        3,399        3,690
                                                        ----------------------------------------------------------------
       Total Interest Expense                            31,055          33,637         36,169       38,699       41,231

Net Interest Income                                     $33,993         $34,568        $35,194      $35,823      $36,454
$ Change from Level Rates                                (1,201)           (626)            --          629        1,260
% Change from Level Rates                                 (3.41)%         (1.78)%                      1.79%        3.58%
</TABLE>


                                                     BankFirst Corporation  | 14
<PAGE>

Management's Discussion and Analysis of Financial Condition and Results of
Operations

BankFirst Corporation

                         Summarized Market Risk Analysis
                              At December 31, 1999

<TABLE>
<CAPTION>
                                                          Decrease in Rates                       Increase in Rates
                                                        --------------------                    ---------------------
                                                           200          100                       100           200
                                                          Basis        Basis        Level        Basis         Basis
                                                         Points       Points        Rates        Points       Points
<S>                                                     <C>          <C>          <C>           <C>          <C>
  Projected Total Interest Income                       $60,986      $62,468      $64,713       $66,959      $68,438

  Projected Total Interest Expense                       25,539       26,833       28,827        30,767       31,958

  Net Interest Income                                    35,447       35,635       35,886        36,192       36,480

  $ Change from Level Rates                                (439)       (251)                        306          594

  % Change from Level Rates                               (1.22)%     (0.70)%                      0.85%        1.66%
</TABLE>

Year 2000

The Company undertook a project (the "Year 2000 Project") to identify and assess
the readiness of its computer systems,  programs and other  infrastructure  that
could be affected by the Year 2000 issue and to remedy the problems  identified.
The Year 2000 Project also included an assessment of Year 2000  readiness of key
third  parties on whom the  Company's  operations  depended.  The  Company  also
developed contingency plans to permit it to continue operations, consistent with
the  highest  quality  standards,  in the event  Year 2000  problems  arose.  If
problems are  encountered in the future related to in-house  systems or to those
of key third  parties,  it is possible  that costs could be incurred  that might
adversely affect the Company's financial condition.

During 1999, the Company incurred costs of approximately  $250,000  attributable
to Year 2000  remediation.  Although  management has not incurred any additional
related  expenses during the first six months of 2000 and anticipates no further
expenses for the  remainder of this year,  unforeseen  circumstances  may arise;
therefore,  monitoring will continue at least through the third quarter of 2000.
Corrective  action  will  be  taken  if  management  encounters  any  previously
unidentified Year 2000 problems internally or in interfacing with third parties,
and the Company's contingency plans remain available.  Management has determined
that if a business  interruption  as a result of the Year 2000  issue  occurred,
such an  interruption  could be  material  to the  Company's  overall  financial
performance.


                                                     BankFirst Corporation  | 15
<PAGE>

BankFirst Corporation

New Accounting and Reporting Requirements

SFAS No. 133,  "Accounting  for  Derivative  Financial  Instruments  and Hedging
Activities".  SFAS No.  133  requires  companies  to record  derivatives  on the
balance sheet as assets or  liabilities  at fair value.  Depending on the use of
the derivatives and whether they qualify for hedge  accounting,  gains or losses
from  changes in the value of such  derivatives  would  either be  recorded as a
component of net income or as a change in stockholders'  equity.  The Company is
required to adopt the new standard as of January 1, 2001. Management has not yet
determined the impact of this new standard.

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
================================================================================

This information is disclosed in Item 2,  "Management's  Discussion and Analysis
of  Financial  Condition  and  Results  of  Operations-  Liquidity  and  Capital
Adequacy".


Part II.- Other Information

Item 6. EXHIBITS AND REPORTS ON FORM 8-K
================================================================================

(a)   Exhibits

27    Financial Data Schedule (filed  electronically  with the SEC) is reflected
      on page 17 of this Quarterly Report on Form 10-Q.

99.1  Awareness  Letter from Crowe,  Chizek and Company LLP is reflected on page
      18 of this Quarterly Report on Form 10-Q.

(b)   Reports on Form 8-K:

During the period  covered by this  Quarterly  Report on Form 10-Q,  the Company
filed one  Current  Report on Form 8-K,  dated April 17, 2000 and filed with the
SEC on April 24, 2000,  reporting the results of the Company's annual meeting of
shareholders  on April 17, 2000 (no financial  information  required to be filed
with the SEC).

SIGNATURES
================================================================================

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

BANKFIRST CORPORATION

August 9, 2000             /s/ C. David Allen
                           -----------------------------------------
                               C. David Allen
                               Chief Financial Officer and Secretary


                                                     BankFirst Corporation  | 16