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 | 2024 | 2023 | 2023 | 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 | $ 1.53 | $ 1.48 | $ 1.55 | $ 1.67 | |||||
Net income-diluted | 1.51 | 1.50 | 1.46 | 1.52 | 1.64 | |||||
Cash dividends declared | 0.43 | 0.43 | 0.43 | 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 | 50 | (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 | 2024 | 2023 | 2023 | 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 | 0.02 | 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 | 182,263 | 182,263 | 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 | June 30, 2024 | ||||||||||||
Interest | Average | Interest | Average | ||||||||||
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 | 23 | 3.79 | 2,525 | 48 | 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 | 59 | 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 | % | 1.46 | % | |||||||||
Net interest margin | 3.76 | % | 3.73 | % | |||||||||
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SOURCE BancFirst