BANCFIRST CORPORATION REPORTS FIRST QUARTER EARNINGS

Rhea-AI Summary

BancFirst (BANF) reported strong Q1 2025 financial results with net income of $56.1 million, or $1.67 per diluted share, up from $50.3 million in Q1 2024. Net interest income increased to $115.9 million from $106.1 million, driven by higher loan volume and earning assets growth. The net interest margin remained stable at 3.70%.

Total assets reached $14.0 billion, increasing $483.7 million from December 31, 2024. Loans grew to $8.1 billion, while deposits rose to $12.1 billion. Nonaccrual loans improved slightly to 0.70% of total loans, with the allowance for credit losses remaining at 1.24%.

The company recorded a $4.4 million expense related to disposing certain equity investments due to Volcker rule compliance. Management expressed caution about the economic outlook, citing bond and equity market volatility and potential economic slowdown impacts on credit quality.

Positive

• Net income increased 11.5% to $56.1 million in Q1 2025
• Net interest income grew 9.3% to $115.9 million
• Total assets increased by $483.7 million to $14.0 billion
• Deposits rose by $408.2 million to $12.1 billion
• Net charge-offs decreased significantly to $503,000 from $3.5 million year-over-year

Negative

• $4.4 million expense for disposing equity investments due to Volcker rule
• Noninterest expense increased 11.3% to $92.2 million
• Management cautious about economic outlook and potential slowdown
• Salaries and employee benefits costs rose by $3.1 million

Insights

Financial Analyst

BancFirst reports strong Q1 growth with 11.3% EPS increase despite economic uncertainty; management maintains cautious outlook.

BancFirst 's Q1 2025 results demonstrate robust financial performance with net income of $56.1 million ($1.67 per diluted share), marking a substantial 11.5% increase from the $50.3 million ($1.50 per share) reported in Q1 2024. This growth is particularly impressive given the challenging economic backdrop mentioned by CEO David Harlow.

The bank's core operations show significant strength, with net interest income rising 9.2% year-over-year to $115.9 million while maintaining a stable net interest margin of 3.70%. This stability in margin is noteworthy in the current interest rate environment where many regional banks face compression. The improvement in credit quality metrics is also substantial, with loan loss provisions decreasing by 60.5% to $1.6 million from $4.0 million in the prior year, and net charge-offs declining dramatically from $3.5 million to just $503,000.

On the balance sheet side, BancFirst has shown impressive growth with total assets increasing to $14.0 billion (up $483.7 million from year-end 2024) and deposits growing by $408.2 million to $12.1 billion. The increase in sweep accounts by $324.6 million suggests strong liquidity management and customer engagement.

While noninterest expenses increased 11.4% to $92.2 million, it's important to note that this includes a one-time $4.4 million expense related to divesting equity investments no longer permissible under the Volcker rule. Excluding this regulatory compliance cost, the expense growth would have been more moderate and better aligned with revenue expansion.

Management's cautious outlook regarding potential economic slowdown merits attention, as evidenced by maintaining the allowance for credit losses at 1.24% of total loans despite improving credit metrics. This conservative approach positions the bank well for any potential deterioration in economic conditions while still delivering strong performance metrics, including a 13.85% return on average equity and 1.66% return on average assets.

OKLAHOMA CITY, April 17, 2025 /PRNewswire/ -- BancFirst Corporation (NASDAQ GS:BANF) reported net income of $56.1 million, or $1.67 per diluted share, for the first quarter of 2025 compared to net income of $50.3 million, or $1.50 per diluted share, for the first quarter of 2024. 

The Company's net interest income for the three-months ended March 31, 2025 increased to $115.9 million compared to $106.1 million for the same period in 2024. Higher loan volume along with general growth in earning assets were the primary drivers of the change in net interest income. Net interest margin was unchanged at 3.70% for both the first quarter of 2025 and 2024. The Company recorded a provision for credit losses of $1.6 million in the first quarter of 2025 compared to $4.0 million for the first quarter of 2024.

Noninterest income for the quarter totaled $49.0 million compared to $44.9 million last year. Trust revenue, treasury income, sweep fees and insurance commissions each increased when compared to first quarter last year.

Noninterest expense grew to $92.2 million for the quarter-ended March 31, 2025 compared to $82.8 million in the same quarter in 2024. The Company recorded a $4.4 million expense related to the disposition of certain equity investments no longer permissible under the Volcker rule which prohibits banks with more than $10 billion in assets from holding certain private equity investments. Additionally, the increase in noninterest expense was augmented by growth in salaries and employee benefits of $3.1 million.

At March 31, 2025, the Company's total assets were $14.0 billion, an increase of $483.7 million from December 31, 2024. Loans grew $69.6 million from December 31, 2024, totaling $8.1 billion at March 31, 2025. Deposits totaled $12.1 billion, an increase of $408.2 million from year-end 2024. Sweep accounts totaled $5.5 billion at March 31, 2025, up $324.6 million from December 31, 2024. The Company's total stockholders' equity was $1.7 billion, an increase of $51.6 million from the end of 2024.

Nonaccrual loans totaled $56.4 million, representing 0.70% of total loans at March 31, 2025, down slightly from 0.72% at year-end 2024. The allowance for credit losses to total loans was 1.24% at March 31, 2025, unchanged from December 31, 2024. Net charge-offs were $503,000 for the quarter compared to $3.5 million for the first quarter last year.

BancFirst Corporation CEO David Harlow commented, "The Company continues to perform fundamentally well; however, the current bond and equity market volatility presents a unique backdrop. The ultimate impact on our region's economy, our customers and, thus, credit quality remains to be seen. We are cautious in our outlook for the remainder of the year with the likelihood of an economic slowdown increasing and, as a result, our reserve for credit losses as a percentage of loans is unchanged from year-end 2024."

BancFirst Corporation (the Company) is an Oklahoma based financial services holding company. The Company operates three subsidiary banks, BancFirst, an Oklahoma state-chartered bank with 104 banking locations serving 59 communities across Oklahoma, Pegasus Bank, a Texas state-chartered bank with three banking locations in the Dallas Metroplex area, and Worthington Bank, a Texas state-chartered bank with three locations in the Fort Worth Metroplex area, one location in Arlington Texas and one location in Denton Texas. More information can be found at www.bancfirst.bank.

The Company may make forward-looking statements within the meaning of Section 27A of the securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 with respect to earnings, credit quality, corporate objectives, interest rates and other financial and business matters. Forward-looking statements include estimates and give management's current expectations or forecasts of future events.  The Company cautions readers that these forward-looking statements are subject to numerous assumptions, risks and uncertainties, including economic conditions, the performance of financial markets and interest rates; legislative and regulatory actions and reforms; competition; as well as other factors, all of which change over time.  Actual results may differ materially from forward-looking statements.

For additional information call: 
Hannah Andrus, Chief Financial Officer at (405) 218-4174 or
David Harlow, Chief Executive Officer at (405) 270-1082.

BancFirst Corporation
Summary Financial Information
(Dollars in thousands, except per share and share data - Unaudited)
		2025		2024		2024		2024		2024
		1st Qtr		4th Qtr		3rd Qtr		2nd Qtr		1st Qtr
Condensed Income Statements:
Net interest income		$                  115,949		$                  115,917		$                  114,957		$                  109,896		$                  106,104
Provision for (benefit from) credit losses		1,586		(1,400)		3,031		3,358		4,015
Noninterest income:
Trust revenue		5,539		5,551		5,672		5,490		5,088
Service charges on deposits		16,804		18,133		17,723		17,280		16,428
Securities transactions		(333)		355		(308)		317		(267)
Sales of loans		636		731		721		733		491
Insurance commissions		10,410		7,914		9,391		6,668		9,455
Cash management		10,051		9,221		9,189		9,149		8,651
Other		5,787		5,114		6,324		4,307		5,054
Total noninterest income		48,894		47,019		48,712		43,944		44,900
Noninterest expense:
Salaries and employee benefits		54,593		54,327		54,215		51,928		51,528
Occupancy expense, net		5,753		5,977		5,776		5,233		5,206
Depreciation		4,808		4,593		4,482		4,504		4,556
Amortization of intangible assets		886		887		886		887		886
Data processing services		2,892		2,726		2,720		2,696		2,616
Net expense from other real estate owned		2,658		6,446		2,751		1,656		2,202
Marketing and business promotion		2,461		2,719		2,168		2,246		2,256
Deposit insurance		1,725		1,653		1,645		1,614		1,438
Other		16,403		13,007		12,091		14,552		12,091
Total noninterest expense		92,179		92,335		86,734		85,316		82,779
Income before income taxes		71,078		72,001		73,904		65,166		64,210
Income tax expense		14,966		15,525		15,001		14,525		13,876
Net income		$                    56,112		$                    56,476		$                    58,903		$                    50,641		$                    50,334
Per Common Share Data:
Net income-basic		$                        1.69		$                        1.71		$                        1.78		$                        1.53		$                        1.53
Net income-diluted		1.67		1.68		1.75		1.51		1.50
Cash dividends declared		0.46		0.46		0.46		0.43		0.43
Common shares outstanding		33,241,564		33,216,519		33,122,689		33,022,124		32,966,678
Average common shares outstanding -
Basic		33,130,938		33,172,530		33,097,164		33,001,180		32,947,983
Diluted		33,667,023		33,750,993		33,646,549		33,525,061		33,513,412
Performance Ratios:
Return on average assets		1.66 %		1.67 %		1.80 %		1.61 %		1.63 %
Return on average stockholders' equity		13.85		14.04		15.14		13.72		13.96
Net interest margin		3.70		3.68		3.78		3.76		3.70
Efficiency ratio		55.92		56.67		52.99		55.46		54.82

 

BancFirst Corporation
Summary Financial Information
(Dollars in thousands, except per share and share data - Unaudited)
		2025		2024		2024		2024		2024
		1st Qtr		4th Qtr		3rd Qtr		2nd Qtr		1st Qtr
Balance Sheet Data:
Total assets		$ 14,038,055		$ 13,554,314		$ 13,313,482		$ 12,737,318		$ 12,602,425
Interest-bearing deposits with banks		3,706,328		3,315,932		2,743,578		2,299,019		2,341,604
Debt securities		1,167,441		1,211,754		1,376,913		1,441,365		1,534,651
Total loans		8,102,810		8,033,183		8,188,202		8,054,856		7,787,857
Allowance for credit losses		(100,455)		(99,497)		(101,882)		(99,626)		(97,267)
Noninterest-bearing demand deposits		4,027,797		3,907,060		3,858,670		3,815,818		3,849,807
Money market and interest-bearing checking deposits		5,393,995		5,231,327		5,122,457		4,930,853		4,901,081
Savings deposits		1,174,685		1,110,020		1,082,855		1,084,266		1,076,181
Time deposits		1,530,273		1,470,139		1,410,370		1,184,665		1,082,552
Total deposits		12,126,750		11,718,546		11,474,352		11,015,602		10,909,621
Stockholders' equity		1,672,827		1,621,187		1,584,575		1,512,492		1,469,312
Book value per common share		50.32		48.81		47.84		45.80		44.57
Tangible book value per common share (non-GAAP)(1)		44.47		42.92		41.91		39.83		38.56
Balance Sheet Ratios:
Average loans to deposits		68.08 %		69.63 %		72.27 %		72.25 %		71.97 %
Average earning assets to total assets		93.10		93.14		93.02		92.77		92.67
Average stockholders' equity to average assets		12.00		11.87		11.88		11.71		11.65
Asset Quality Data:
Past due loans		$          5,120		$          7,739		$          4,628		$          4,280		$          6,332
Nonaccrual loans (3)		56,371		57,984		45,481		44,021		41,996
Other real estate owned and repossessed assets		35,542		33,665		39,519		38,497		35,116
Nonaccrual loans to total loans		0.70 %		0.72 %		0.56 %		0.55 %		0.54 %
Allowance to total loans		1.24		1.24		1.24		1.24		1.25
Allowance to nonaccrual loans		178.20		171.59		224.01		226.32		231.61
Net charge-offs to average loans		0.01		0.01		0.01		0.01		0.05
Reconciliation of Tangible Book Value Per Common Share (non-GAAP)(2):
Stockholders' equity		$   1,672,827		$   1,621,187		$   1,584,575		$   1,512,492		$   1,469,312
Less goodwill		182,263		182,263		182,263		182,263		182,263
Less intangible assets, net		12,272		13,158		14,045		14,931		15,818
Tangible stockholders' equity (non-GAAP)		$   1,478,292		$   1,425,766		$   1,388,267		$   1,315,298		$   1,271,231
Common shares outstanding		33,241,564		33,216,519		33,122,689		33,022,124		32,966,678
Tangible book value per common share (non-GAAP)		$          44.47		$          42.92		$          41.91		$          39.83		$          38.56

(1) Refer to the "Reconciliation of Tangible Book Value per Common Share (non-GAAP)" Table.
(2) Tangible book value per common share is stockholders' equity less goodwill and intangible assets, net, divided by common shares outstanding. This amount is a non-GAAP financial measure but has been included as it is considered to be a critical metric with which to analyze and evaluate the financial condition and capital strength of the Company. This measure should not be considered a substitute for operating results determined in accordance with GAAP.
(3) Government Agencies guarantee approximately $9.2 million of nonaccrual loans at March 31, 2025.

 

BancFirst Corporation
Consolidated Average Balance Sheets
And Interest Margin Analysis
Taxable Equivalent Basis
(Dollars in thousands - Unaudited)
	Three Months Ended
	March 31, 2025
			Interest		Average
	Average		Income/		Yield/
	Balance		Expense		Rate
ASSETS
Earning assets:
Loans	$        8,050,816		$           137,178		6.91	%
Securities – taxable	1,195,306		7,006		2.38
Securities – tax exempt	2,192		22		4.13
Interest bearing deposits with banks and FFS	3,492,467		38,468		4.47
Total earning assets	12,740,781		182,674		5.81
Nonearning assets:
Cash and due from banks	214,859
Interest receivable and other assets	828,449
Allowance for credit losses	(99,703)
Total nonearning assets	943,605
Total assets	$      13,684,386
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest bearing liabilities:
Money market and interest-bearing checking deposits	$        5,302,584		$             40,720		3.11	%
Savings deposits	1,138,173		8,900		3.17
Time deposits	1,494,885		15,870		4.31
Short-term borrowings	643		7		4.36
Subordinated debt	86,162		1,030		4.85
Total interest bearing liabilities	8,022,447		66,527		3.36
Interest free funds:
Noninterest bearing deposits	3,889,812
Interest payable and other liabilities	129,460
Stockholders' equity	1,642,667
Total interest free  funds	5,661,939
Total liabilities and stockholders' equity	$      13,684,386
Net interest income			$           116,147
Net interest spread					2.45	%
Effect of interest free funds					1.25	%
Net interest margin					3.70	%

 

View original content:https://www.prnewswire.com/news-releases/bancfirst-corporation-reports-first-quarter-earnings-302431846.html

SOURCE BancFirst

FAQ

What was BancFirst's (BANF) earnings per share in Q1 2025?

BancFirst reported earnings of $1.67 per diluted share in Q1 2025, compared to $1.50 in Q1 2024.

How much did BANF's total deposits grow in Q1 2025?

Total deposits increased by $408.2 million to $12.1 billion in Q1 2025 from year-end 2024.

What is BANF's current credit quality status?

Nonaccrual loans were 0.70% of total loans, with an allowance for credit losses at 1.24% as of March 31, 2025.

How did BancFirst's net interest income perform in Q1 2025?

Net interest income increased to $115.9 million in Q1 2025 from $106.1 million in Q1 2024, driven by higher loan volume.