BANCFIRST CORPORATION REPORTS FOURTH QUARTER EARNINGS
OKLAHOMA CITY, Jan. 18, 2024 /PRNewswire/ — BancFirst Corporation (NASDAQ GS:BANF) reported net income of $48.9 million, or $1.46 diluted earnings per share, for the fourth quarter of 2023 compared to net income of $57.1 million, or $1.70 diluted earnings per share, for the fourth quarter of 2022. Net income for the year ended December 31, 2023 was $212.5 million, or $6.34 diluted earnings per share, compared to $193.1 million, or $5.77 diluted earnings per share, for the year ended December 31, 2022.
The Company’s net interest income for the fourth quarter of 2023 decreased to $105.1 million compared to $110.4 million for the quarter ended December 31, 2022. This decrease resulted from an increase in both the volume and rate of interest bearing deposits. The net interest margin for the quarter was 3.67% compared to 3.83% a year ago. For the fourth quarter of 2023, the Company did not record recognize a provision for credit losses. In the fourth quarter of 2022, the Company recorded a provision for credit loss of $3.8 million due largely to loan growth.
Noninterest income for the quarter totaled $45.2 million, compared to $48.2 million last year. The decrease in noninterest income was primarily due to a reduction of interchange fees of approximately $5.3 million related to the impact of the Durbin amendment. Trust revenue, sweep fees and insurance commissions were all up modestly.
Noninterest expense for the quarter increased to $89.8 million compared to $84.6 million last year. The increase was primarily related to growth in salaries and employee benefits of $2.7 million. In addition, the quarter included a write down on other real estate owned of $5.2 million compared to $3.7 million during the fourth quarter of 2022.
The Company’s effective tax rate for the period was 18.99% compared to 18.55% for the fourth quarter of 2022. During the first quarter of 2023, the Company adopted ASU 2023-02 which increased income tax expense.
At December 31, 2023, the Company’s total assets were $12.4 billion, virtually unchanged from December 31, 2022. Loans totaled $7.7 billion, an increase of $710.3 million from December 31, 2022. Liquidity remained strong with cash of $2.4 billion and an average loan to deposit ratio of 70.5% for the quarter ended December 31, 2023. Deposits totaled $10.7 billion, compared to $11.0 billion at December 31, 2022. Sweep accounts totaled $4.3 billion at December 31, 2023 up $612.8 million from the prior year. The Company continues to fund itself with community based deposits and does not use brokered or reciprocal deposits. The Company’s total stockholders’ equity was $1.4 billion, an increase of $183.1 million from December 31, 2022.
Asset quality remained strong with nonaccrual loans of $24.6 million, representing 0.32% of total loans at December 31, 2023. Nonaccrual loans were $15.3 million or 0.22% of total loans at December 31, 2022. The allowance for credit losses to total loans stood at 1.26% at December 31, 2023 compared to 1.33% at December 31, 2022. Net charge-offs were $3.4 million for the year or 0.05% of average loans, compared to $1.4 million or 0.02% of average loans for the year ended December 31, 2022.
BancFirst Corporation CEO David Harlow commented, “The Company reported record earnings in 2023 at $6.34 diluted earnings per share as we successfully managed through the Federal Reserve’s continued tightening with the Fed Funds rate reaching its highest level in 22 years in July. The ensuing shift in deposit mix out of non-interest bearing accounts into interest bearing accounts put pressure on the net interest margin as the year progressed which we were able to mitigate somewhat with strong loan growth throughout the year. Absent the impact of the Durbin Amendment on interchange, all major non-interest income categories showed good growth during the year. The Company’s earnings will be less in 2024 with a full year of Durbin, ongoing margin pressure anticipated as a result of continued competition for deposits, and increased regulatory compliance costs as a result of crossing the $10 billion asset threshold. Our current outlook on the economy is less pessimistic than a year ago as reflected in our modestly lower CECL reserve percentage at December 31, 2023, when compared to a year ago.”
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 106 banking locations serving 59 communities across Oklahoma, Pegasus Bank, with 3 banking locations in the Dallas Metroplex area and Worthington Bank with 3 locations in the Fort Worth Metroplex area, 1 location in Arlington Texas and 1 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)
2023
2023
2023
2023
2022
4th Qtr
3rd Qtr
2nd Qtr
1st Qtr
4th Qtr
Condensed Income Statements:
Net interest income
$ 105,066
$ 104,308
$ 105,926
$ 109,156
$ 110,352
Provision for credit losses
–
2,312
2,824
2,322
3,776
Noninterest income:
Trust revenue
5,106
4,866
4,590
4,222
4,065
Service charges on deposits
16,841
17,027
22,268
21,231
21,603
Securities transactions
(1,364)
(361)
110
(213)
1,116
Income from sales of loans
512
734
757
604
657
Insurance commissions
7,220
8,429
6,225
8,741
6,656
Cash management
7,878
8,177
7,927
6,734
6,124
Other
8,964
5,577
6,097
6,509
7,947
Total noninterest income
45,157
44,449
47,974
47,828
48,168
Noninterest expense:
Salaries and employee benefits
50,731
50,200
49,803
49,252
48,019
Occupancy expense, net
5,439
5,487
5,118
4,983
5,259
Depreciation
4,560
4,685
4,769
4,643
4,566
Amortization of intangible assets
887
885
880
880
880
Data processing services
2,224
1,820
2,217
2,107
1,928
Net expense from other real estate owned
7,870
2,720
2,889
2,459
6,235
Marketing and business promotion
2,653
2,034
1,900
2,527
2,465
Deposit insurance
1,332
1,419
1,463
1,613
1,209
Other
14,120
11,965
12,071
11,853
14,044
Total noninterest expense
89,816
81,215
81,110
80,317
84,605
Income before income taxes
60,407
65,230
69,966
74,345
70,139
Income tax expense
11,473
14,242
14,956
16,812
13,013
Net income
$ 48,934
$ 50,988
$ 55,010
$ 57,533
$ 57,126
Per Common Share Data:
Net income-basic
$ 1.48
$ 1.55
$ 1.67
$ 1.75
$ 1.74
Net income-diluted
1.46
1.52
1.64
1.72
1.70
Cash dividends declared
0.43
0.43
0.40
0.40
0.40
Common shares outstanding
32,933,018
32,921,393
32,939,256
32,899,493
32,875,560
Average common shares outstanding –
Basic
32,926,326
32,937,149
32,920,497
32,892,857
32,868,087
Diluted
33,483,691
33,539,389
33,467,254
33,462,379
33,503,937
Performance Ratios:
Return on average assets
1.58 %
1.68 %
1.85 %
1.90 %
1.82 %
Return on average stockholders’ equity
13.98
14.93
16.59
18.31
18.62
Net interest margin
3.67
3.73
3.87
3.89
3.83
Efficiency ratio
59.79
54.60
52.70
51.16
53.37
BancFirst Corporation
Summary Financial Information
(Dollars in thousands, except per share and share data – Unaudited)
Twelve months ended
December 31,
2023
2022
Condensed Income Statements:
Net interest income
$ 424,456
$ 373,673
Provision for credit losses
7,458
10,076
Noninterest income:
Trust revenue
18,784
15,645
Service charges on deposits
77,367
86,757
Securities transactions
(1,828)
(1,833)
Income from sales of loans
2,607
4,548
Insurance commissions
30,615
26,883
Cash management
30,716
19,326
Other
27,147
32,421
Total noninterest income
185,408
183,747
Noninterest expense:
Salaries and employee benefits
199,986
184,976
Occupancy expense, net
21,027
19,326
Depreciation
18,657
18,600
Amortization of intangible assets
3,532
3,448
Data processing services
8,368
7,584
Net expense from other real estate owned
15,938
9,911
Marketing and business promotion
9,114
8,074
Deposit insurance
5,827
4,735
Other
50,009
53,258
Total noninterest expense
332,458
309,912
Income before income taxes
269,948
237,432
Income tax expense
57,483
44,332
Net income
$ 212,465
$ 193,100
Per Common Share Data:
Net income-basic
$ 6.45
$ 5.89
Net income-diluted
6.34
5.77
Cash dividends declared
1.66
1.52
Common shares outstanding
32,933,018
32,875,560
Average common shares outstanding –
Basic
32,919,348
32,778,355
Diluted
33,494,487
33,439,496
Performance Ratios:
Return on average assets
1.75 %
1.56 %
Return on average stockholders’ equity
15.89
16.11
Net interest margin
3.79
3.29
Efficiency ratio
54.51
55.60
BancFirst Corporation
Summary Financial Information
(Dollars in thousands, except per share and share data – Unaudited)
2023
2023
2023
2023
2022
4th Qtr
3rd Qtr
2nd Qtr
1st Qtr
4th Qtr
Balance Sheet Data:
Total assets
$ 12,372,042
$ 12,114,602
$ 12,020,265
$ 12,332,105
$ 12,387,863
Interest-bearing deposits with banks
2,172,001
2,134,081
2,188,004
2,623,565
2,909,861
Debt securities
1,555,095
1,525,448
1,570,620
1,618,233
1,540,604
Total loans
7,660,134
7,476,474
7,307,475
7,124,831
6,949,795
Allowance for credit losses
(96,800)
(97,776)
(96,920)
(94,760)
(92,728)
Deposits
10,700,122
10,534,171
10,475,180
10,610,103
10,974,228
Stockholders’ equity
1,433,891
1,370,584
1,340,791
1,310,882
1,250,836
Book value per common share
43.54
41.63
40.70
39.85
38.05
Tangible book value per common share (non-GAAP)(1)
37.50
35.56
34.62
33.73
31.90
Balance Sheet Ratios:
Average loans to deposits
70.52 %
70.61 %
69.85 %
64.54 %
62.25 %
Average earning assets to total assets
92.42
92.39
92.23
92.52
92.14
Average stockholders’ equity to average assets
11.30
11.28
11.17
10.36
9.80
Asset Quality Data:
Past due loans
$ 9,542
$ 12,575
$ 8,799
$ 7,258
$ 7,085
Nonaccrual loans (3)
24,573
16,676
18,047
17,649
15,299
Other real estate owned and repossessed assets
34,200
42,782
41,612
38,874
36,936
Nonaccrual loans to total loans
0.32 %
0.22 %
0.25 %
0.25 %
0.22 %
Allowance to total loans
1.26
1.31
1.33
1.33
1.33
Allowance to nonaccrual loans
393.92
586.34
537.05
536.93
606.10
Net charge-offs to average loans
0.02
0.02
0.01
0.00
0.01
Reconciliation of Tangible Book Value Per Common Share (non-GAAP)(2):
Stockholders’ equity
$ 1,433,891
$ 1,370,584
$ 1,340,791
$ 1,310,882
$ 1,250,836
Less goodwill
182,263
182,263
182,055
182,055
182,055
Less intangible assets, net
16,704
17,591
18,223
19,103
19,983
Tangible stockholders’ equity (non-GAAP)
$ 1,234,924
$ 1,170,730
$ 1,140,513
$ 1,109,724
$ 1,048,798
Common shares outstanding
32,933,018
32,921,393
32,939,256
32,899,493
32,875,560
Tangible book value per common share (non-GAAP)
$ 37.50
$ 35.56
$ 34.62
$ 33.73
$ 31.90
(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 $6.7 million of nonaccrual loans at December 31, 2023.
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, 2023
December 31, 2023
Interest
Average
Interest
Average
Average
Income/
Yield/
Average
Income/
Yield/
Balance
Expense
Rate
Balance
Expense
Rate
ASSETS
Earning assets:
Loans
$ 7,532,162
$126,757
6.68
%
$ 7,292,871
$467,951
6.42
%
Debt securities – taxable
1,534,062
9,179
2.37
1,565,697
36,838
2.35
Debt securities – tax exempt
3,635
26
2.84
3,339
91
2.71
Interest bearing deposits with banks and FFS
2,286,826
31,607
5.48
2,343,182
119,486
5.10
Total earning assets
11,356,685
167,569
5.85
11,205,089
624,366
5.57
Nonearning assets:
Cash and due from banks
201,800
204,394
Interest receivable and other assets
827,456
814,419
Allowance for credit losses
(97,757)
(96,154)
Total nonearning assets
931,499
922,659
Total assets
$12,288,184
$12,127,748
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest bearing liabilities:
Transaction deposits
$ 821,237
$ 2,288
1.11
%
$ 849,707
$ 7,559
0.89
%
Savings deposits
4,862,828
49,841
4.07
4,598,936
164,291
3.57
Time deposits
916,518
9,170
3.97
797,179
23,196
2.91
Short-term borrowings
3,786
51
5.30
6,432
312
4.84
Subordinated debt
86,091
1,031
4.75
86,070
4,122
4.79
Total interest bearing liabilities
6,690,460
62,381
3.70
6,338,324
199,480
3.15
Interest free funds:
Noninterest bearing deposits
4,080,430
4,343,646
Interest payable and other liabilities
128,809
108,438
Stockholders’ equity
1,388,485
1,337,340
Total interest free funds
5,597,724
5,789,424
Total liabilities and stockholders’ equity
$12,288,184
$12,127,748
Net interest income
$105,188
$424,886
Net interest spread
2.15
%
2.42
%
Effect of interest free funds
1.52
%
1.37
%
Net interest margin
3.67
%
3.79
%
View original content:https://www.prnewswire.com/news-releases/bancfirst-corporation-reports-fourth-quarter-earnings-302038844.html
SOURCE BancFirst
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