BANCFIRST CORPORATION REPORTS FOURTH QUARTER EARNINGS

Rhea-AI Summary

BancFirst (BANF) reported strong Q4 2024 results with net income of $56.5 million ($1.68 EPS), up from $48.9 million ($1.46 EPS) in Q4 2023. Full-year 2024 net income reached $216.4 million ($6.44 EPS), compared to $212.5 million ($6.34 EPS) in 2023.

Net interest income increased to $115.9 million in Q4 2024, up from $105.1 million in Q4 2023, driven by loan growth. The net interest margin slightly improved to 3.68%. Total assets grew to $13.6 billion, with loans reaching $8.0 billion and deposits increasing to $11.7 billion. Sweep accounts rose by $871.6 million to $5.2 billion.

Asset quality metrics showed nonaccrual loans at 0.72% of total loans, up from 0.32% year-over-year, while the allowance for credit losses remained stable at 1.24%. The company achieved record net income and EPS for the fourth consecutive year, with management expressing a positive outlook for 2025.

Positive

• Net income increased 15.5% YoY to $56.5 million in Q4 2024
• Net interest income grew 10.3% to $115.9 million
• Total assets increased by $1.2 billion to $13.6 billion
• Loan portfolio expanded by $373 million
• Deposits grew by $1.0 billion
• Fourth consecutive year of record net income and EPS

Negative

• Nonaccrual loans increased to 0.72% from 0.32% YoY
• Shift from noninterest-bearing to interest-bearing deposits affecting margins
• Noninterest expense increased by $2.5 million YoY

Insights

Financial Analyst

BancFirst 's Q4 2024 results reveal a compelling growth story marked by several notable achievements. The 15.5% year-over-year increase in quarterly net income to $56.5 million demonstrates robust operational execution, particularly impressive given the challenging banking environment.

The bank's fundamentals show particular strength in key areas:

• Net interest income grew 10.3% year-over-year, primarily driven by loan growth rather than margin expansion, indicating sustainable organic growth.
• The stability in net interest margin at 3.68% is remarkable, especially considering the shifting deposit mix toward interest-bearing accounts, suggesting effective cost management.
• Asset quality metrics remain strong with an allowance coverage ratio of 1.24%, though the increase in nonaccrual loans warrants monitoring.

The $871.6 million growth in sweep accounts is particularly noteworthy, as it provides a stable funding source while offering operational flexibility. The bank's total asset growth of $1.2 billion demonstrates strong market presence in Oklahoma and Texas markets.

A critical strength lies in the bank's regional focus in economically resilient areas. The CEO's comments about regional economic strength align with observable trends in Oklahoma's diverse economy, supported by energy, agriculture and manufacturing sectors. The bank's expansion in the Dallas-Fort Worth Metroplex through Pegasus and Worthington Bank provides additional growth vectors in one of the nation's most dynamic economic regions.

The slight deterioration in nonaccrual loans (from 0.32% to 0.72%) requires context - while it represents an increase, it remains well below concerning levels and is offset by stable charge-offs and a robust allowance for credit losses. The bank's proactive approach to credit management, evidenced by the $1.4 million allowance reversal, suggests confidence in their loan portfolio quality.

OKLAHOMA CITY, Jan. 23, 2025 /PRNewswire/ -- BancFirst Corporation (NASDAQ GS:BANF) reported net income of $56.5 million, or $1.68 diluted earnings per share, for the fourth quarter of 2024 compared to net income of $48.9 million, or $1.46 diluted earnings per share, for the fourth quarter of 2023. Net income for the year ended December 31, 2024 was $216.4 million, or $6.44 diluted earnings per share, compared to $212.5 million, or $6.34 diluted earnings per share, for the year ended December 31, 2023.

The Company's net interest income for the fourth quarter of 2024 increased to $115.9 million compared to $105.1 million for the same period in 2023. Increased loan volume was the primary driver of the change in net interest income, but was partially offset by the impact of the shifting mix between interest-bearing and noninterest-bearing deposits. Net interest margin for the quarter ended December 31 was 3.68% in 2024 compared to 3.67% in 2023. In the fourth quarter of 2024, the Company reversed $1.4 million of allowance for credit losses resulting in a nominal decrease in the allowance as a percentage of loans when compared to a year ago and no change from prior quarter.

Noninterest income for the quarter totaled $47.0 million compared to $45.2 million last year. Trust revenue, treasury income, sweep fees and insurance commissions each increased when compared to fourth quarter last year. Also contributing to the period over period change was a $355,000 gain on equity securities recorded in the fourth quarter of 2024 compared to a loss of $1.4 million during the same period last year.

Noninterest expense for the quarter increased to $92.3 million compared to $89.8 million in the fourth quarter last year. The increase in noninterest expense was primarily related to growth in salaries and employee benefits of $3.6 million. This increase was partially offset by a lower write-down of other real estate owned of $3.9 million in 2024 compared to $5.2 million in 2023.

At December 31, 2024, the Company's total assets were $13.6 billion, an increase of $1.2 billion from December 31, 2023. Loans grew $373.0 million from December 31, 2023, totaling $8.0 billion at December 31, 2024. Deposits totaled $11.7 billion, an increase of $1.0 billion from year-end 2023. Sweep accounts totaled $5.2 billion at December 31, 2024, up $871.6 million from December 31, 2023. The Company's total stockholders' equity was $1.6 billion, an increase of $187.3 million from the end of 2023.

Nonaccrual loans totaled $58.0 million, representing 0.72% of total loans at December 31, 2024 compared to 0.32% at year-end 2023. The allowance for credit losses to total loans was 1.24% at the end of 2024 compared to 1.26% at December 31, 2023. Net charge-offs of $985,000 for the quarter remained relatively stable when compared to $976,000 for the fourth quarter last year.

BancFirst Corporation CEO David Harlow commented, "The Company reported record net income and record earnings per share for the fourth consecutive year. Loan growth was the primary driver of improved results in 2024 when compared to last year while asset quality remained strong. The return of deposit growth was encouraging albeit entirely in the interest bearing and time segments. Our outlook for 2025 is positive overall as the economy in our region of the country continues to perform well."

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.

BancFirst Corporation
Summary Financial Information
(Dollars in thousands, except per share and share data - Unaudited)
		2024		2024		2024		2024		2023
		4th Qtr		3rd Qtr		2nd Qtr		1st Qtr		4th Qtr
Condensed Income Statements:
Net interest income		$           115,917		$           114,957		$           109,896		$           106,104		$             105,066
(Benefit from) provision for credit losses		(1,400)		3,031		3,358		4,015		-
Noninterest income:
Trust revenue		5,551		5,672		5,490		5,088		5,106
Service charges on deposits		18,133		17,723		17,280		16,428		16,841
Securities transactions		355		(308)		317		(267)		(1,364)
Sales of loans		731		721		733		491		512
Insurance commissions		7,914		9,391		6,668		9,455		7,220
Cash management		9,221		9,189		9,149		8,651		7,878
Other		5,114		6,324		4,307		5,054		8,964
Total noninterest income		47,019		48,712		43,944		44,900		45,157
Noninterest expense:
Salaries and employee benefits		54,327		54,215		51,928		51,528		50,731
Occupancy expense, net		5,977		5,776		5,233		5,206		5,439
Depreciation		4,593		4,482		4,504		4,556		4,560
Amortization of intangible assets		887		886		887		886		887
Data processing services		2,726		2,720		2,696		2,616		2,224
Net expense from other real estate owned		6,446		2,751		1,656		2,202		7,870
Marketing and business promotion		2,719		2,168		2,246		2,256		2,653
Deposit insurance		1,653		1,645		1,614		1,438		1,332
Other		13,007		12,091		14,552		12,091		14,120
Total noninterest expense		92,335		86,734		85,316		82,779		89,816
Income before income taxes		72,001		73,904		65,166		64,210		60,407
Income tax expense		15,525		15,001		14,525		13,876		11,473
Net income		$              56,476		$              58,903		$              50,641		$              50,334		$               48,934
Per Common Share Data:
Net income-basic		$                  1.71		$                  1.78		$                  1.53		$                  1.53		$                   1.48
Net income-diluted		1.68		1.75		1.51		1.50		1.46
Cash dividends declared		0.46		0.46		0.43		0.43		0.43
Common shares outstanding		33,216,519		33,122,689		33,022,124		32,966,678		32,933,018
Average common shares outstanding -
Basic		33,172,530		33,097,164		33,001,180		32,947,983		32,926,326
Diluted		33,750,993		33,646,549		33,525,061		33,513,412		33,483,691
Performance Ratios:
Return on average assets		1.67 %		1.80 %		1.61 %		1.63 %		1.58 %
Return on average stockholders' equity		14.04		15.14		13.72		13.96		13.98
Net interest margin		3.68		3.78		3.76		3.70		3.67
Efficiency ratio		56.67		52.99		55.46		54.82		59.79

 

BancFirst Corporation
Summary Financial Information
(Dollars in thousands, except per share and share data - Unaudited)
		Twelve months ended
		December 31,
		2024		2023
Condensed Income Statements:
Net interest income		$                446,874		$                424,456
Provision for credit losses		9,004		7,458
Noninterest income:
Trust revenue		21,801		18,784
Service charges on deposits		69,564		77,367
Securities transactions		97		(1,828)
Sales of loans		2,676		2,607
Insurance commissions		33,428		30,615
Cash management		36,210		30,716
Other		20,799		27,147
Total noninterest income		184,575		185,408
Noninterest expense:
Salaries and employee benefits		211,998		199,986
Occupancy expense, net		22,192		21,027
Depreciation		18,135		18,657
Amortization of intangible assets		3,546		3,532
Data processing services		10,758		8,368
Net expense from other real estate owned		13,055		15,938
Marketing and business promotion		9,389		9,114
Deposit insurance		6,350		5,827
Other		51,741		50,009
Total noninterest expense		347,164		332,458
Income before income taxes		275,281		269,948
Income tax expense		58,927		57,483
Net income		$                216,354		$                212,465
Per Common Share Data:
Net income-basic		$                      6.55		$                      6.45
Net income-diluted		6.44		6.34
Cash dividends declared		1.78		1.66
Common shares outstanding		33,216,519		32,933,018
Average common shares outstanding -
Basic		33,055,152		32,919,348
Diluted		33,617,015		33,494,487
Performance Ratios:
Return on average assets		1.68 %		1.75 %
Return on average stockholders' equity		14.23		15.89
Net interest margin		3.73		3.79
Efficiency ratio		54.98		54.51

 

BancFirst Corporation
Summary Financial Information
(Dollars in thousands, except per share and share data - Unaudited)
		2024		2024		2024		2024		2023
		4th Qtr		3rd Qtr		2nd Qtr		1st Qtr		4th Qtr
Balance Sheet Data:
Total assets		$ 13,554,314		$ 13,313,482		$ 12,737,318		$ 12,602,425		$ 12,372,042
Interest-bearing deposits with banks		3,315,932		2,743,578		2,299,019		2,341,604		2,172,001
Debt securities		1,211,754		1,376,913		1,441,365		1,534,651		1,555,095
Total loans		8,033,183		8,188,202		8,054,856		7,787,857		7,660,134
Allowance for credit losses		(99,497)		(101,882)		(99,626)		(97,267)		(96,800)
Noninterest-bearing demand deposits		3,907,060		3,858,670		3,815,818		3,849,807		3,982,226
Money market and interest-bearing checking deposits		5,231,327		5,122,457		4,930,853		4,901,081		4,699,865
Savings deposits		1,110,020		1,082,855		1,084,266		1,076,181		1,056,404
Time deposits		1,470,139		1,410,370		1,184,665		1,082,552		961,627
Total deposits		11,718,546		11,474,352		11,015,602		10,909,621		10,700,122
Stockholders' equity		1,621,187		1,584,575		1,512,492		1,469,312		1,433,891
Book value per common share		48.81		47.84		45.80		44.57		43.54
Tangible book value per common share (non-GAAP)(1)		42.92		41.91		39.83		38.56		37.50
Balance Sheet Ratios:
Average loans to deposits		69.63 %		72.27 %		72.25 %		71.97 %		70.52 %
Average earning assets to total assets		93.14		93.02		92.77		92.67		92.42
Average stockholders' equity to average assets		11.87		11.88		11.71		11.65		11.30
Asset Quality Data:
Past due loans		$          7,739		$          4,628		$          4,280		$          6,332		$          9,542
Nonaccrual loans (3)		57,984		45,481		44,021		41,996		24,573
Other real estate owned and repossessed assets		33,665		39,519		38,497		35,116		34,200
Nonaccrual loans to total loans		0.72 %		0.56 %		0.55 %		0.54 %		0.32 %
Allowance to total loans		1.24		1.24		1.24		1.25		1.26
Allowance to nonaccrual loans		171.59		224.01		226.32		231.61		393.92
Net charge-offs to average loans		0.01		0.01		0.01		0.05		0.02
Reconciliation of Tangible Book Value Per Common Share (non-GAAP)(2):
Stockholders' equity		$   1,621,187		$   1,584,575		$   1,512,492		$   1,469,312		$   1,433,891
Less goodwill		182,263		182,263		182,263		182,263		182,263
Less intangible assets, net		13,158		14,045		14,931		15,818		16,704
Tangible stockholders' equity (non-GAAP)		$   1,425,766		$   1,388,267		$   1,315,298		$   1,271,231		$   1,234,924
Common shares outstanding		33,216,519		33,122,689		33,022,124		32,966,678		32,933,018
Tangible book value per common share (non-GAAP)		$          42.92		$          41.91		$          39.83		$          38.56		$          37.50

(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 $9.0 million of nonaccrual loans at December 31, 2024.

 

	BancFirst Corporation
	Consolidated Average Balance Sheets
	And Interest Margin Analysis
	Taxable Equivalent Basis
	(Dollars in thousands - Unaudited)
	Three Months Ended							Twelve Months Ended
	December 31, 2024							December 31, 2024
			Interest		Average					Interest		Average
	Average		Income/		Yield/			Average		Income/		Yield/
	Balance		Expense		Rate			Balance		Expense		Rate
ASSETS
Earning assets:
Loans	$              8,084,358		$                 141,152		6.93	%		$       7,958,463		$      555,426		6.96 %
Securities – taxable	1,341,045		7,846		2.32			1,448,103		34,300		2.36
Securities – tax exempt	2,236		22		3.82			2,415		93		3.85
Interest-bearing deposits with banks and FFS	3,097,982		37,553		4.81			2,553,503		134,941		5.27
Total earning assets	12,525,621		186,573		5.91			11,962,484		724,760		6.04
Nonearning assets:
Cash and due from banks	205,093							201,666
Interest receivable and other assets	819,199							810,732
Allowance for credit losses	(101,395)							(99,098)
Total nonearning assets	922,897							913,300
Total assets	$            13,448,518							$     12,875,784
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing liabilities:
Money market and interest-bearing checking deposits	$              5,165,391		$                   44,302		3.40	%		$       4,992,037		$      181,201		3.62
Savings deposits	1,095,677		8,754		3.17			1,076,837		36,256		3.36
Time deposits	1,437,296		16,344		4.51			1,219,253		55,450		4.54
Short-term borrowings	2,990		32		4.30			4,999		235		4.69
Subordinated debt	86,148		1,032		4.75			86,127		4,123		4.77
Total interest-bearing liabilities	7,787,502		70,464		3.59			7,379,253		277,265		3.75
Interest free funds:
Noninterest-bearing deposits	3,911,434							3,842,049
Interest payable and other liabilities	153,812							138,007
Stockholders' equity	1,595,770							1,516,475
Total interest free  funds	5,661,016							5,496,531
Total liabilities and stockholders' equity	$            13,448,518							$     12,875,784
Net interest income			$                 116,109							$      447,495
Net interest spread					2.32	%						2.29 %
Effect of interest free funds					1.36	%						1.44 %
Net interest margin					3.68	%						3.73 %

 

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SOURCE BancFirst

FAQ

What was BancFirst's (BANF) Q4 2024 earnings per share?

BancFirst reported diluted earnings per share of $1.68 for Q4 2024, up from $1.46 in Q4 2023.

How much did BANF's total assets grow in 2024?

BancFirst's total assets grew by $1.2 billion to reach $13.6 billion by December 31, 2024.

What was BANF's loan growth in 2024?

BancFirst's loans grew by $373.0 million to reach $8.0 billion by December 31, 2024.

How did BANF's deposit base change in 2024?

Deposits increased by $1.0 billion, with sweep accounts growing by $871.6 million to reach $5.2 billion.

What was BANF's net interest margin in Q4 2024?

BancFirst's net interest margin was 3.68% in Q4 2024, slightly up from 3.67% in Q4 2023.

How did BANF's asset quality metrics change in 2024?

Nonaccrual loans increased to 0.72% of total loans from 0.32% year-over-year, while the allowance for credit losses slightly decreased to 1.24% from 1.26%.