BANCFIRST CORPORATION REPORTS THIRD QUARTER EARNINGS

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BancFirst (NASDAQ GS:BANF) reported net income of $58.9 million, or $1.75 per diluted share, for the third quarter of 2024, up from $51.0 million, or $1.52 per diluted share, in Q3 2023. Net interest income increased to $115.0 million from $104.3 million year-over-year, driven primarily by loan volume growth. The net interest margin improved to 3.78% from 3.73% in the same period last year.

Noninterest income grew to $48.7 million, while noninterest expense increased to $86.7 million. Total assets reached $13.3 billion, with loans growing to $8.2 billion and deposits rising to $11.5 billion. The company's total stockholders' equity increased to $1.6 billion. Nonaccrual loans represented 0.56% of total loans, and the allowance for credit losses to total loans was 1.24%.

Positive

• Net income increased by 15.5% year-over-year to $58.9 million
• Net interest income grew by 10.3% to $115.0 million
• Net interest margin improved from 3.73% to 3.78%
• Noninterest income increased by 9.7% to $48.7 million
• Total assets grew by $941.4 million to $13.3 billion
• Loans increased by $528.1 million to $8.2 billion
• Deposits rose by $774.2 million to $11.5 billion
• Total stockholders' equity increased by $150.7 million to $1.6 billion

Negative

• Noninterest expense increased by 6.8% to $86.7 million
• Nonaccrual loans increased from 0.32% to 0.56% of total loans
• Sweep accounts decreased by $60.6 million to $4.3 billion

Insights

Financial Analyst

BancFirst 's Q3 2024 results show solid performance with notable improvements across key metrics. Net income increased by 15.5% year-over-year to $58.9 million, or $1.75 per diluted share. The company's net interest income grew by 10.3% to $115.0 million, primarily driven by loan volume growth.

The net interest margin improved slightly to 3.78% from 3.73% in the previous year. Noninterest income saw a 9.7% increase, with growth across trust revenue, treasury income, sweep fees and insurance commissions. However, noninterest expenses also rose by 6.8%, mainly due to higher salaries and employee benefits.

Asset quality remains strong, with nonaccrual loans at 0.56% of total loans, though up from 0.32% at year-end 2023. The allowance for credit losses to total loans ratio slightly decreased to 1.24%. The company's balance sheet expanded, with total assets increasing by $941.4 million to $13.3 billion and loans growing by $528.1 million to $8.2 billion.

While the current results are positive, the CEO's comments suggest caution regarding future net interest margin due to potential interest rate changes. Investors should monitor how the company manages its asset and liability pricing in the coming months.

Market Research Analyst

BancFirst 's Q3 2024 results demonstrate resilience in a changing economic landscape. The company's ability to grow loans by $528.1 million since December 2023 indicates strong demand and effective market penetration. The 10.3% increase in net interest income, despite shifting deposit mix, showcases the bank's adaptability.

The improvement in noninterest income, particularly in trust revenue and treasury services, suggests successful diversification of revenue streams. This could provide a buffer against potential interest rate volatility. The slight increase in nonaccrual loans (from 0.32% to 0.56%) warrants attention but remains manageable given the strong allowance for credit losses.

The company's expansion of total assets by $941.4 million and deposits by $774.2 million indicates growing market share and customer trust. However, the $60.6 million decrease in sweep accounts could signal a shift in customer cash management strategies.

Looking ahead, the Federal Reserve's recent rate cut and potential future reductions create uncertainty for net interest margins. BancFirst's ability to navigate this changing rate environment will be important for maintaining profitability and shareholder value in the coming quarters.

OKLAHOMA CITY, Oct. 17, 2024 /PRNewswire/ -- BancFirst Corporation (NASDAQ GS:BANF) reported net income of $58.9 million, or $1.75 per diluted share, for the third quarter of 2024 compared to net income of $51.0 million, or $1.52 per diluted share, for the third quarter of 2023.

The Company's net interest income for the third quarter of 2024 increased to $115.0 million from $104.3 million for the same period in 2023. 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 three-month period ended September 30 was 3.78% in 2024 compared to 3.73% in 2023. The Company recorded a provision for credit losses of $3.0 million in the third quarter of 2024 compared to $2.3 million for the same period in 2023.

Noninterest income for the quarter totaled $48.7 million compared to $44.4 million last year. Trust revenue, treasury income, sweep fees and insurance commissions each increased when compared to third quarter last year.

Noninterest expense for the quarter increased to $86.7 million compared to $81.2 million in the same quarter last year. The increase in noninterest expense was primarily related to growth in salaries and employee benefits of $4.0 million.

The Company's effective tax rate for the period was 20.3% compared to 21.8% for the third quarter of 2023.

At September 30, 2024, the Company's total assets were $13.3 billion, an increase of $941.4 million from December 31, 2023. Loans grew $528.1 million from December 31, 2023, totaling $8.2 billion at September 30, 2024. Deposits totaled $11.5 billion, an increase of $774.2 million from year-end 2023. Sweep accounts totaled $4.3 billion at September 30, 2024, down $60.6 million from December 31, 2023. The Company's total stockholders' equity was $1.6 billion, an increase of $150.7 million over December 31, 2023.

Nonaccrual loans totaled $45.5 million, representing 0.56% of total loans at September 30, 2024 compared to 0.32% at year-end 2023. The allowance for credit losses to total loans was 1.24% at September 30, 2024 compared to 1.26% at the end of 2023. Net charge-offs were $775,000 for the quarter compared to $1.5 million for the third quarter of 2023.

BancFirst Corporation CEO David Harlow commented, "Loan growth, an improved net interest margin, and growth across all major components of non-interest income resulted in a strong quarter for the Company. While the Federal Reserve's late September 50 basis point rate cut had little impact on the quarter, the potential for further short-term rate reductions combined with a recent increase in the longer-term portion of the yield curve changes the landscape considerably and causes our outlook on net interest margin to be unclear. However, we believe the Company is well positioned to reasonably manage and balance our asset and liability pricing in the coming months. Our perspective on credit is unchanged as the Federal Reserve's goal of a "soft landing," while more likely, is far from certain, thus our Loan Loss Reserve as a percentage of loans is the same when compared to last quarter."

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		2023		2023
		3rd Qtr		2nd Qtr		1st Qtr		4th Qtr		3rd Qtr
Condensed Income Statements:
Net interest income		$                  114,957		$                  109,896		$                  106,104		$                  105,066		$                  104,308
Provision for credit losses		3,031		3,358		4,015		-		2,312
Noninterest income:
Trust revenue		5,672		5,490		5,088		5,106		4,866
Service charges on deposits		17,723		17,280		16,428		16,841		17,027
Securities transactions		(308)		317		(267)		(1,364)		(361)
Sales of loans		721		733		491		512		734
Insurance commissions		9,391		6,668		9,455		7,220		8,429
Cash management		9,189		9,149		8,651		7,878		8,177
Other		6,324		4,307		5,054		8,964		5,577
Total noninterest income		48,712		43,944		44,900		45,157		44,449
Noninterest expense:
Salaries and employee benefits		54,215		51,928		51,528		50,731		50,200
Occupancy expense, net		5,776		5,233		5,206		5,439		5,487
Depreciation		4,482		4,504		4,556		4,560		4,685
Amortization of intangible assets		886		887		886		887		885
Data processing services		2,720		2,696		2,616		2,224		1,820
Net expense from other real estate owned		2,751		1,656		2,202		7,870		2,720
Marketing and business promotion		2,168		2,246		2,256		2,653		2,034
Deposit insurance		1,645		1,614		1,438		1,332		1,419
Other		12,091		14,552		12,091		14,120		11,965
Total noninterest expense		86,734		85,316		82,779		89,816		81,215
Income before income taxes		73,904		65,166		64,210		60,407		65,230
Income tax expense		15,001		14,525		13,876		11,473		14,242
Net income		$                    58,903		$                    50,641		$                    50,334		$                    48,934		$                    50,988
Per Common Share Data:
Net income-basic		$                        1.78		$                        1.53		$                        1.53		$                        1.48		$                        1.55
Net income-diluted		1.75		1.51		1.50		1.46		1.52
Cash dividends declared		0.46		0.43		0.43		0.43		0.43
Common shares outstanding		33,122,689		33,022,124		32,966,678		32,933,018		32,921,393
Average common shares outstanding -
Basic		33,097,164		33,001,180		32,947,983		32,926,326		32,937,149
Diluted		33,646,549		33,525,061		33,513,412		33,483,691		33,539,389
Performance Ratios:
Return on average assets		1.80 %		1.61 %		1.63 %		1.58 %		1.68 %
Return on average stockholders' equity		15.14		13.72		13.96		13.98		14.93
Net interest margin		3.78		3.76		3.70		3.67		3.73
Efficiency ratio		52.99		55.46		54.82		59.79		54.60

 

BancFirst Corporation
Summary Financial Information
(Dollars in thousands, except per share and share data - Unaudited)
		Nine months ended
		September 30,
		2024		2023
Condensed Income Statements:
Net interest income		$                  330,957		$                  319,390
Provision for credit losses		10,404		7,458
Noninterest income:
Trust revenue		16,250		13,678
Service charges on deposits		51,431		60,526
Securities transactions		(258)		(464)
Sales of loans		1,945		2,095
Insurance commissions		25,514		23,395
Cash management		26,989		22,838
Other		15,685		18,183
Total noninterest income		137,556		140,251
Noninterest expense:
Salaries and employee benefits		157,671		149,255
Occupancy expense, net		16,215		15,588
Depreciation		13,542		14,097
Amortization of intangible assets		2,659		2,645
Data processing services		8,032		6,144
Net expense from other real estate owned		6,609		8,068
Marketing and business promotion		6,670		6,461
Deposit insurance		4,697		4,495
Other		38,734		35,889
Total noninterest expense		254,829		242,642
Income before income taxes		203,280		209,541
Income tax expense		43,402		46,010
Net income		$                  159,878		$                  163,531
Per Common Share Data:
Net income-basic		$                        4.84		$                        4.97
Net income-diluted		4.76		4.88
Cash dividends declared		1.32		1.23
Common shares outstanding		33,122,689		32,921,393
Average common shares outstanding -
Basic		33,015,741		32,916,996
Diluted		33,567,117		33,493,015
Performance Ratios:
Return on average assets		1.68 %		1.81 %
Return on average stockholders' equity		14.30		16.56
Net interest margin		3.75		3.83
Efficiency ratio		54.39		52.79

 

BancFirst Corporation
Summary Financial Information
(Dollars in thousands, except per share and share data - Unaudited)
		2024		2024		2024		2023		2023
		3rd Qtr		2nd Qtr		1st Qtr		4th Qtr		3rd Qtr
Balance Sheet Data:
Total assets		$ 13,313,482		$ 12,737,318		$ 12,602,425		$ 12,372,042		$ 12,114,602
Interest-bearing deposits with banks		2,743,578		2,299,019		2,341,604		2,172,001		2,134,081
Debt securities		1,376,913		1,441,365		1,534,651		1,555,095		1,525,448
Total loans		8,188,202		8,054,856		7,787,857		7,660,134		7,476,474
Allowance for credit losses		(101,882)		(99,626)		(97,267)		(96,800)		(97,776)
Noninterest-bearing demand deposits		3,858,670		3,815,818		3,849,807		3,982,226		4,170,550
Money market and interest-bearing checking deposits		5,122,457		4,930,853		4,901,081		4,699,865		4,453,892
Savings deposits		1,082,855		1,084,266		1,076,181		1,056,404		1,062,041
Time deposits		1,410,370		1,184,665		1,082,552		961,627		847,688
Total deposits		11,474,352		11,015,602		10,909,621		10,700,122		10,534,171
Stockholders' equity		1,584,575		1,512,492		1,469,312		1,433,891		1,370,584
Book value per common share		47.84		45.80		44.57		43.54		41.63
Tangible book value per common share (non-GAAP)(1)		41.91		39.83		38.56		37.50		35.56
Balance Sheet Ratios:
Average loans to deposits		72.27 %		72.25 %		71.97 %		70.52 %		70.61 %
Average earning assets to total assets		93.02		92.77		92.67		92.42		92.39
Average stockholders' equity to average assets		11.88		11.71		11.65		11.30		11.28
Asset Quality Data:
Past due loans		$          4,628		$          4,280		$          6,332		$          9,542		$        12,575
Nonaccrual loans (3)		45,481		44,021		41,996		24,573		16,676
Other real estate owned and repossessed assets		39,519		38,497		35,116		34,200		42,782
Nonaccrual loans to total loans		0.56 %		0.55 %		0.54 %		0.32 %		0.22 %
Allowance to total loans		1.24		1.24		1.25		1.26		1.31
Allowance to nonaccrual loans		224.01		226.32		231.61		393.92		586.34
Net charge-offs to average loans		0.01		0.01		0.05		0.02		0.02
Reconciliation of Tangible Book Value Per Common Share (non-GAAP)(2):
Stockholders' equity		$   1,584,575		$   1,512,492		$   1,469,312		$   1,433,891		$   1,370,584
Less goodwill		182,263		182,263		182,263		182,263		182,263
Less intangible assets, net		14,045		14,931		15,818		16,704		17,591
Tangible stockholders' equity (non-GAAP)		$   1,388,267		$   1,315,298		$   1,271,231		$   1,234,924		$   1,170,730
Common shares outstanding		33,122,689		33,022,124		32,966,678		32,933,018		32,921,393
Tangible book value per common share (non-GAAP)		$          41.91		$          39.83		$          38.56		$          37.50		$          35.56
(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 $7.5 million of nonaccrual loans at September 30, 2024.

	BancFirst Corporation
	Consolidated Average Balance Sheets
	And Interest Margin Analysis
	Taxable Equivalent Basis
	(Dollars in thousands - Unaudited)
	Three Months Ended							Nine Months Ended
	September 30, 2024							September 30, 2024
			Interest		Average					Interest		Average
	Average		Income/		Yield/			Average		Income/		Yield/
	Balance		Expense		Rate			Balance		Expense		Rate
ASSETS
Earning assets:
Loans	$        8,103,297		$           144,179		7.06	%		$  7,916,192		$  414,274		6.97	%
Securities – taxable	1,406,344		8,341		2.35			1,484,049		26,454		2.37
Securities – tax exempt	2,374		23		3.87			2,474		71		3.80
Interest-bearing deposits with banks and FFS	2,574,083		35,267		5.44			2,370,685		97,388		5.47
Total earning assets	12,086,098		187,810		6.17			11,773,400		538,187		6.09
Nonearning assets:
Cash and due from banks	195,636							200,515
Interest receivable and other assets	810,781							807,891
Allowance for credit losses	(99,967)							(98,327)
Total nonearning assets	906,450							910,079
Total assets	$      12,992,548							$12,683,479
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing liabilities:
Money market and interest-bearing checking deposits	$        5,064,491		$             47,386		3.71	%		$  4,933,831		$  136,899		3.70	%
Savings deposits	1,078,383		9,277		3.41			1,070,512		27,502		3.42
Time deposits	1,275,206		14,952		4.65			1,146,042		39,106		4.55
Short-term borrowings	4,423		48		4.30			5,673		203		4.76
Subordinated debt	86,134		1,030		4.74			86,120		3,091		4.78
Total interest-bearing liabilities	7,508,637		72,693		3.84			7,242,178		206,801		3.80
Interest free funds:
Noninterest-bearing deposits	3,793,962							3,818,752
Interest payable and other liabilities	146,868							132,698
Stockholders' equity	1,543,081							1,489,851
Total interest free  funds	5,483,911							5,441,301
Total liabilities and stockholders' equity	$      12,992,548							$12,683,479
Net interest income			$           115,117							$  331,386
Net interest spread					2.33	%						2.29	%
Effect of interest free funds					1.45	%						1.46	%
Net interest margin					3.78	%						3.75	%

 

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SOURCE BancFirst