July 18, 2024

BANCFIRST CORPORATION REPORTS SECOND QUARTER EARNINGS

OKLAHOMA CITY, July 18, 2024 /PRNewswire/ — BancFirst Corporation (NASDAQ GS: BANF) reported net income of $50.6 million, or $1.51 per diluted share, for the second quarter of 2024 compared to net income of $55.0 million, or $1.64 per diluted share, for the second quarter of 2023.

The Company’s net interest income for the second quarter of 2024 increased to $109.9 million from $105.9 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 June 30 was 3.76% in 2024 compared to 3.87% in 2023. The Company recorded a provision for credit losses of $3.4 million in the second quarter of 2024 compared to $2.8 million for the same period in 2023.

Noninterest income for the quarter totaled $43.9 million compared to $48.0 million last year. The decrease in noninterest income was primarily due to an approximate $5.7 million reduction of interchange fees related to the impact of the Durbin Amendment. Trust revenue, treasury income, sweep fees and insurance commissions each increased when compared to second quarter last year.

Noninterest expense for the quarter increased to $85.3 million compared to $81.1 million in the same quarter last year. The increase in noninterest expense was primarily related to growth in salaries and employee benefits of $2.1 million.

The Company’s effective tax rate for the period was 22.3% compared to 21.4% for the second quarter of 2023.

At June 30, 2024, the Company’s total assets were $12.7 billion, an increase of $365.3 million from December 31, 2023. Loans grew $394.7 million from December 31, 2023, totaling $8.1 billion at June 30, 2024. Deposits totaled $11.0 billion, an increase of $315.5 million from year-end 2023. Sweep accounts totaled $4.5 billion at June 30, 2024, up $153.9 million from December 31, 2023. The Company’s total stockholders’ equity was $1.5 billion, an increase of $78.6 million over December 31, 2023.

Nonaccrual loans totaled $44.0 million, representing 0.55% of total loans at June 30, 2024 compared to 0.32% at year-end 2023. The allowance for credit losses to total loans was 1.24% at June 30, 2024 compared to 1.26% at the end of 2023. Net charge-offs were $1.0 million for the quarter compared to $664,000 for the second quarter of 2023.

BancFirst Corporation CEO David Harlow commented, “Strong loan growth led the way to another good quarter for the Company. Total deposits returned to pre-March 2023 banking crisis levels, although the mix has changed materially as noninterest-bearing deposits have migrated to higher yielding account options. Recent inflation and unemployment data has provided more support for Federal Reserve rate cuts prior to year-end. However, the ultimate outlook on credit remains uncertain in our view and, accordingly, the Company’s allowance for credit losses as a percentage of total loans remained relatively unchanged from the first 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

2023

2nd Qtr

1st Qtr

4th Qtr

3rd Qtr

2nd Qtr

Condensed Income Statements:

Net interest income

$ 109,896

$ 106,104

$ 105,066

$ 104,308

$ 105,926

Provision for credit losses

3,358

4,015

–

2,312

2,824

Noninterest income:

Trust revenue

5,490

5,088

5,106

4,866

4,590

Service charges on deposits

17,280

16,428

16,841

17,027

22,268

Securities transactions

317

(267)

(1,364)

(361)

110

Sales of loans

733

491

512

734

757

Insurance commissions

6,668

9,455

7,220

8,429

6,225

Cash management

9,149

8,651

7,878

8,177

7,927

Other

4,307

5,054

8,964

5,577

6,097

Total noninterest income

43,944

44,900

45,157

44,449

47,974

Noninterest expense:

Salaries and employee benefits

51,928

51,528

50,731

50,200

49,803

Occupancy expense, net

5,233

5,206

5,439

5,487

5,118

Depreciation

4,504

4,556

4,560

4,685

4,769

Amortization of intangible assets

887

886

887

885

880

Data processing services

2,696

2,616

2,224

1,820

2,217

Net expense from other real estate owned

1,656

2,202

7,870

2,720

2,889

Marketing and business promotion

2,246

2,256

2,653

2,034

1,900

Deposit insurance

1,614

1,438

1,332

1,419

1,463

Other

14,552

12,091

14,120

11,965

12,071

Total noninterest expense

85,316

82,779

89,816

81,215

81,110

Income before income taxes

65,166

64,210

60,407

65,230

69,966

Income tax expense

14,525

13,876

11,473

14,242

14,956

Net income

$ 50,641

$ 50,334

$ 48,934

$ 50,988

$ 55,010

Per Common Share Data:

Net income-basic

$ 1.53

$ 1.48

$ 1.55

$ 1.67

Net income-diluted

1.51

1.50

1.46

1.52

1.64

Cash dividends declared

0.43

0.40

Common shares outstanding

33,022,124

32,966,678

32,933,018

32,921,393

32,939,256

Average common shares outstanding –

Basic

33,001,180

32,947,983

32,926,326

32,937,149

32,920,497

Diluted

33,525,061

33,513,412

33,483,691

33,539,389

33,467,254

Performance Ratios:

Return on average assets

1.61 %

1.63 %

1.58 %

1.68 %

1.85 %

Return on average stockholders’ equity

13.72

13.96

13.98

14.93

16.59

Net interest margin

3.76

3.70

3.67

3.73

3.87

Efficiency ratio

55.46

54.82

59.79

54.60

52.70

BancFirst Corporation

Summary Financial Information

(Dollars in thousands, except per share and share data – Unaudited)

Six months ended

June 30,

2024

2023

Condensed Income Statements:

Net interest income

$ 216,000

$ 215,082

Provision for credit losses

7,373

5,146

Noninterest income:

Trust revenue

10,578

8,812

Service charges on deposits

33,708

43,499

Securities transactions

(103)

Sales of loans

1,224

1,361

Insurance commissions

16,123

14,966

Cash management

17,800

14,661

Other

9,361

12,606

Total noninterest income

88,844

95,802

Noninterest expense:

Salaries and employee benefits

103,456

99,055

Occupancy expense, net

10,439

10,101

Depreciation

9,060

9,412

Amortization of intangible assets

1,773

1,760

Data processing services

5,312

4,324

Net expense from other real estate owned

3,858

5,348

Marketing and business promotion

4,502

4,427

Deposit insurance

3,052

3,076

Other

26,643

23,924

Total noninterest expense

168,095

161,427

Income before income taxes

129,376

144,311

Income tax expense

28,401

31,768

Net income

$ 100,975

$ 112,543

Per Common Share Data:

Net income-basic

$ 3.06

$ 3.42

Net income-diluted

3.01

3.36

Cash dividends declared

0.86

0.80

Common shares outstanding

33,022,124

32,939,256

Average common shares outstanding –

Basic

32,974,582

32,906,753

Diluted

33,520,247

33,465,931

Performance Ratios:

Return on average assets

1.62 %

1.87 %

Return on average stockholders’ equity

13.84

17.43

Net interest margin

3.73

3.88

Efficiency ratio

55.14

51.93

BancFirst Corporation

Summary Financial Information

(Dollars in thousands, except per share and share data – Unaudited)

2024

2023

2nd Qtr

1st Qtr

4th Qtr

3rd Qtr

2nd Qtr

Balance Sheet Data:

Total assets

$ 12,737,318

$ 12,602,425

$ 12,372,042

$ 12,114,602

$ 12,020,265

Interest-bearing deposits with banks

2,299,019

2,341,604

2,172,001

2,134,081

2,188,004

Debt securities

1,441,365

1,534,651

1,555,095

1,525,448

1,570,620

Total loans

8,054,856

7,787,857

7,660,134

7,476,474

7,307,475

Allowance for credit losses

(99,626)

(97,267)

(96,800)

(97,776)

(96,920)

Noninterest-bearing demand deposits

3,815,818

3,849,807

3,982,226

4,170,550

4,285,620

Money market and interest-bearing checking deposits

4,930,853

4,901,081

4,699,865

4,453,892

4,365,202

Savings deposits

1,084,266

1,076,181

1,056,404

1,062,041

1,084,050

Time deposits

1,184,665

1,082,552

961,627

847,688

740,308

Total deposits

11,015,602

10,909,621

10,700,122

10,534,171

10,475,180

Stockholders’ equity

1,512,492

1,469,312

1,433,891

1,370,584

1,340,791

Book value per common share

45.80

44.57

43.54

41.63

40.70

Tangible book value per common share (non-GAAP)(1)

39.83

38.56

37.50

35.56

34.62

Balance Sheet Ratios:

Average loans to deposits

72.25 %

71.97 %

70.52 %

70.61 %

69.85 %

Average earning assets to total assets

92.77

92.67

92.42

92.39

92.23

Average stockholders’ equity to average assets

11.71

11.65

11.30

11.28

11.17

Asset Quality Data:

Past due loans

$ 4,280

$ 6,332

$ 9,542

$ 12,575

$ 8,799

Nonaccrual loans (3)

44,021

41,996

24,573

16,676

18,047

Other real estate owned and repossessed assets

38,497

35,116

34,200

42,782

41,612

Nonaccrual loans to total loans

0.55 %

0.54 %

0.32 %

0.22 %

0.25 %

Allowance to total loans

1.24

1.25

1.26

1.31

1.33

Allowance to nonaccrual loans

226.32

231.61

393.92

586.34

537.05

Net charge-offs to average loans

0.01

0.05

0.02

0.01

Reconciliation of Tangible Book Value Per Common Share (non-GAAP)(2):

Stockholders’ equity

$ 1,512,492

$ 1,469,312

$ 1,433,891

$ 1,370,584

$ 1,340,791

Less goodwill

182,263

182,055

Less intangible assets, net

14,931

15,818

16,704

17,591

18,223

Tangible stockholders’ equity (non-GAAP)

$ 1,315,298

$ 1,271,231

$ 1,234,924

$ 1,170,730

$ 1,140,513

Common shares outstanding

33,022,124

32,966,678

32,933,018

32,921,393

32,939,256

Tangible book value per common share (non-GAAP)

$ 39.83

$ 38.56

$ 37.50

$ 35.56

$ 34.62

(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 $8.5 million of nonaccrual loans at June 30, 2024.

BancFirst Corporation

Consolidated Average Balance Sheets

And Interest Margin Analysis

Taxable Equivalent Basis

(Dollars in thousands – Unaudited)

Three Months Ended

Six Months Ended

June 30, 2024

Interest

Average

Interest

Average

Income/

Yield/

Average

Income/

Yield/

Balance

Expense

Rate

Balance

Expense

Rate

ASSETS

Earning assets:

Loans

$ 7,912,469

$ 137,846

6.99

$ 7,821,611

$ 270,095

6.93

Securities – taxable

1,488,850

8,932

2.41

1,523,328

18,113

2.38

Securities – tax exempt

2,408

3.79

2,525

3.77

Interest bearing deposits with banks and FFS

2,322,951

31,805

5.49

2,267,869

62,121

5.49

Total earning assets

11,726,678

178,606

6.11

11,615,333

350,377

6.05

Nonearning assets:

Cash and due from banks

203,664

202,982

Interest receivable and other assets

808,283

806,429

Allowance for credit losses

(97,935)

(97,498)

Total nonearning assets

914,012

911,913

Total assets

$ 12,640,690

$ 12,527,246

LIABILITIES AND STOCKHOLDERS’ EQUITY

Interest bearing liabilities:

Money market and interest-bearing checking deposits

$ 4,920,793

$ 45,296

3.69

$ 4,867,783

$ 89,513

3.69

Savings deposits

1,076,338

9,222

3.44

1,066,532

18,225

3.43

Time deposits

1,134,460

12,961

4.58

1,080,750

24,154

4.48

Short-term borrowings

4,593

5.14

6,306

155

4.92

Subordinated debt

86,120

1,031

4.80

86,113

2,061

4.80

Total interest bearing liabilities

7,222,304

68,569

3.81

7,107,484

134,108

3.78

Interest free funds:

Noninterest bearing deposits

3,819,196

3,831,283

Interest payable and other liabilities

119,175

125,536

Stockholders’ equity

1,480,015

1,462,943

Total interest free funds

5,418,386

5,419,762

Total liabilities and stockholders’ equity

$ 12,640,690

$ 12,527,246

Net interest income

$ 110,037

$ 216,269

Net interest spread

2.30

2.27

Effect of interest free funds

1.46

Net interest margin

3.76

3.73

View original content:https://www.prnewswire.com/news-releases/bancfirst-corporation-reports-second-quarter-earnings-302201007.html

SOURCE BancFirst

BANCFIRST CORPORATION REPORTS SECOND QUARTER EARNINGS

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BANCFIRST CORPORATION REPORTS SECOND QUARTER EARNINGS

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