BANCFIRST CORPORATION REPORTS THIRD QUARTER EARNINGS
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 %
