Oklahoma
City, Oct. 19, 2023 /PRNewswire/ -- BancFirst
Corporation (NASDAQ GS:BANF) reported net income of $51.0 million, or $1.52 diluted earnings per share, for the third
quarter of 2023 compared to net income of $55.4 million, or $1.65 diluted earnings per share, for the third
quarter of 2022. Net income for the nine months ended September 30, 2023 was $163.5 million, or $4.88 per share, compared to $136.0 million, or $4.07 per share, for the nine months ended
September 30, 2022.
The Company's net interest income for the third quarter of 2023
increased to $104.3 million compared
to $100.9 million for the quarter
ended September 30, 2022. Rising
short-term interest rates and loan growth drove the increase. The
net interest margin for the quarter was 3.73% compared to 3.87% in
the second quarter and 3.48% a year ago. The decrease in margin
from the second quarter was largely due to an increase in deposit
rates and a shift in deposit mix from noninterest bearing to
interest bearing deposits. For the third quarter of 2023, the
Company recorded a provision for credit losses of $2.3 million for loan growth, compared to
$2.9 million for the third
quarter of 2022.
Noninterest income for the quarter totaled $44.4 million, compared to $49.3 million last year. The decrease in
noninterest income was attributable to the reduction of interchange
fees of approximately $5.4 million
related to the impact of the Durbin amendment as the Company now
exceeds $10 billion in total assets.
In addition, noninterest income for the third quarter of 2022
included $3.2 million of income
from an equity interest received from a prior loan settlement,
which was sold during the second quarter of 2023.
Noninterest expense for the quarter increased to $81.2 million compared to $79.1 million last year. Higher noninterest
expense was primarily related to an increase in salaries and
employee benefits of $2.5
million.
The Company's effective tax rate for the period was 21.8%
compared to 19.0% for the third quarter of 2022. During the first
quarter of 2023, the Company adopted ASU 2023-02 which increased
income tax expense. Additionally, the lower effective tax rate in
2022 stemmed from the exercise of stock options during the
quarter.
At September 30, 2023, the
Company's total assets were $12.1
billion, a decrease of $273.3
million from December 31,
2022. Loans totaled $7.5
billion, an increase of $526.7
million from December 31,
2022. Liquidity remained strong with cash at $2.3 billion and a quarterly average loan to
deposit ratio of 70.6% at September 30,
2023 compared to 62.3% at year-end. Deposits totaled
$10.5 billion, $440.1 million below December 31, 2022 as some large commercial
deposits moved from demand accounts into the Company's off balance
sheet sweep product. Sweep accounts totaled $4.0 billion at September
30, 2023 up $285.3 million
from December 31, 2022. 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 $119.7
million above December 31,
2022.
Asset quality remained strong with nonaccrual loans of
$16.7 million, representing 0.22% of
total loans at both September 30,
2023 and December 31,
2022. The allowance for credit losses to total loans stood at
1.31% at September 30, 2023 virtually
unchanged from 1.33% at December 31,
2022. Net charge-offs were 0.02% of average loans for the
third quarter of 2023 compared to 0.00% for the third quarter of
2022.
BancFirst Corporation CEO David
Harlow commented, "The Company reported a solid quarter at
$1.52 diluted earnings per share
despite the impact of the first full quarter of reduced interchange
fees under the Durbin Amendment. Continuing headwinds in the
coming months include deposit pricing pressure and increased
overhead required to meet the regulatory requirements for a holding
company with assets exceeding $10
billion. Regardless, our talented bankers combined with
the Company's fortress balance sheet and top-tier liquidity
position us to compete favorably in the markets that we serve."
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
|
|
2022
|
|
2022
|
|
|
3rd Qtr
|
|
2nd Qtr
|
|
1st Qtr
|
|
4th Qtr
|
|
3rd Qtr
|
|
Condensed Income
Statements:
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
104,308
|
|
$
105,926
|
|
$
109,156
|
|
$
110,352
|
|
$
100,947
|
|
Provision for credit
losses
|
|
2,312
|
|
2,824
|
|
2,322
|
|
3,776
|
|
2,863
|
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
|
|
|
Trust
revenue
|
|
4,866
|
|
4,590
|
|
4,222
|
|
4,065
|
|
4,125
|
|
Service charges on
deposits
|
|
17,027
|
|
22,268
|
|
21,231
|
|
21,603
|
|
22,161
|
|
Securities
transactions
|
|
(361)
|
|
110
|
|
(213)
|
|
1,116
|
|
966
|
|
Income from sales of
loans
|
|
734
|
|
757
|
|
604
|
|
657
|
|
969
|
|
Insurance
commissions
|
|
8,429
|
|
6,225
|
|
8,741
|
|
6,656
|
|
7,498
|
|
Cash
management
|
|
8,177
|
|
7,927
|
|
6,734
|
|
6,124
|
|
5,624
|
|
Other
|
|
5,577
|
|
6,097
|
|
6,509
|
|
7,947
|
|
7,988
|
|
Total noninterest
income
|
|
44,449
|
|
47,974
|
|
47,828
|
|
48,168
|
|
49,331
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
50,200
|
|
49,803
|
|
49,252
|
|
48,019
|
|
47,741
|
|
Occupancy expense,
net
|
|
5,487
|
|
5,118
|
|
4,983
|
|
5,259
|
|
4,930
|
|
Depreciation
|
|
4,685
|
|
4,769
|
|
4,643
|
|
4,566
|
|
4,612
|
|
Amortization of
intangible assets
|
|
885
|
|
880
|
|
880
|
|
880
|
|
880
|
|
Data processing
services
|
|
1,820
|
|
2,217
|
|
2,107
|
|
1,928
|
|
1,876
|
|
Net expense from other
real estate owned
|
|
2,720
|
|
2,889
|
|
2,459
|
|
6,235
|
|
2,392
|
|
Marketing and business
promotion
|
|
2,034
|
|
1,900
|
|
2,527
|
|
2,465
|
|
1,945
|
|
Deposit
insurance
|
|
1,419
|
|
1,463
|
|
1,613
|
|
1,209
|
|
1,202
|
|
Other
|
|
11,965
|
|
12,071
|
|
11,853
|
|
14,044
|
|
13,500
|
|
Total
noninterest expense
|
|
81,215
|
|
81,110
|
|
80,317
|
|
84,605
|
|
79,078
|
|
Income before
income taxes
|
|
65,230
|
|
69,966
|
|
74,345
|
|
70,139
|
|
68,337
|
|
Income tax
expense
|
|
14,242
|
|
14,956
|
|
16,812
|
|
13,013
|
|
12,985
|
|
Net
income
|
|
$
50,988
|
|
$
55,010
|
|
$
57,533
|
|
$
57,126
|
|
$
55,352
|
|
Per Common Share
Data:
|
|
|
|
|
|
|
|
|
|
|
|
Net
income-basic
|
|
$
1.55
|
|
$
1.67
|
|
$
1.75
|
|
$
1.74
|
|
$
1.69
|
|
Net
income-diluted
|
|
1.52
|
|
1.64
|
|
1.72
|
|
1.70
|
|
1.65
|
|
Cash dividends
declared
|
|
0.43
|
|
0.40
|
|
0.40
|
|
0.40
|
|
0.40
|
|
Common shares
outstanding
|
|
32,921,393
|
|
32,939,256
|
|
32,899,493
|
|
32,875,560
|
|
32,856,387
|
|
Average common
shares outstanding -
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
32,937,149
|
|
32,920,497
|
|
32,892,857
|
|
32,868,087
|
|
32,825,931
|
|
Diluted
|
|
33,539,389
|
|
33,467,254
|
|
33,462,379
|
|
33,503,937
|
|
33,536,558
|
|
Performance Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
1.68 %
|
|
1.85 %
|
|
1.90 %
|
|
1.82 %
|
|
1.75 %
|
|
Return on average
stockholders' equity
|
|
14.93
|
|
16.59
|
|
18.31
|
|
18.62
|
|
18.13
|
|
Net interest
margin
|
|
3.73
|
|
3.87
|
|
3.89
|
|
3.83
|
|
3.48
|
|
Efficiency
ratio
|
|
54.60
|
|
52.70
|
|
51.16
|
|
53.37
|
|
52.62
|
|
|
|
|
|
|
|
|
|
|
|
|
BancFirst Corporation
|
|
Summary Financial Information
|
|
(Dollars in thousands, except per share and share
data - Unaudited)
|
|
|
|
|
|
|
|
Nine months ended
|
|
September 30,
|
|
|
2023
|
|
2022
|
|
Condensed Income
Statements:
|
|
|
|
|
|
Net interest
income
|
|
$
319,390
|
|
$
263,321
|
|
Provision for
credit losses
|
|
7,458
|
|
6,300
|
|
Noninterest
income:
|
|
|
|
|
|
Trust
revenue
|
|
13,678
|
|
11,580
|
|
Service charges on
deposits
|
|
60,526
|
|
65,154
|
|
Securities
transactions
|
|
(464)
|
|
(2,949)
|
|
Income from sales of
loans
|
|
2,095
|
|
3,891
|
|
Insurance
commissions
|
|
23,395
|
|
20,227
|
|
Cash
management
|
|
22,838
|
|
13,202
|
|
Other
|
|
18,183
|
|
24,474
|
|
Total noninterest
income
|
|
140,251
|
|
135,579
|
|
|
|
|
|
|
Noninterest
expense:
|
|
|
|
|
|
Salaries and employee
benefits
|
|
149,255
|
|
136,957
|
|
Occupancy expense,
net
|
|
15,588
|
|
14,067
|
|
Depreciation
|
|
14,097
|
|
14,034
|
|
Amortization of
intangible assets
|
|
2,645
|
|
2,568
|
|
Data processing
services
|
|
6,144
|
|
5,656
|
|
Net expense from other
real estate owned
|
|
8,068
|
|
3,676
|
|
Marketing and business
promotion
|
|
6,461
|
|
5,609
|
|
Deposit
insurance
|
|
4,495
|
|
3,526
|
|
Other
|
|
35,889
|
|
39,214
|
|
Total noninterest
expense
|
|
242,642
|
|
225,307
|
|
Income before
income taxes
|
|
209,541
|
|
167,293
|
|
Income tax
expense
|
|
46,010
|
|
31,319
|
|
Net
income
|
|
$
163,531
|
|
$
135,974
|
|
Per Common Share
Data:
|
|
|
|
|
|
Net
income-basic
|
|
$
4.97
|
|
$
4.15
|
|
Net
income-diluted
|
|
4.88
|
|
4.07
|
|
Cash dividends
declared
|
|
1.23
|
|
1.12
|
|
Common shares
outstanding
|
|
32,921,393
|
|
32,856,387
|
|
Average common
shares outstanding -
|
|
|
|
|
|
Basic
|
|
32,916,996
|
|
32,748,116
|
|
Diluted
|
|
33,493,015
|
|
33,429,161
|
|
Performance Ratios:
|
|
|
|
|
|
Return on average
assets
|
|
1.81 %
|
|
1.47 %
|
|
Return on average
stockholders' equity
|
|
16.56
|
|
15.24
|
|
Net interest
margin
|
|
3.83
|
|
3.11
|
|
Efficiency
ratio
|
|
52.79
|
|
56.48
|
|
|
|
|
|
|
BancFirst Corporation
|
|
Summary Financial Information
|
|
(Dollars in thousands, except per share and share
data - Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
2023
|
|
2023
|
|
2022
|
|
2022
|
|
|
3rd Qtr
|
|
2nd Qtr
|
|
1st Qtr
|
|
4th Qtr
|
|
3rd Qtr
|
|
Balance Sheet Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
12,114,602
|
|
$
12,020,265
|
|
$
12,332,105
|
|
$
12,387,863
|
|
$
12,452,378
|
|
Interest-bearing
deposits with banks
|
|
2,134,081
|
|
2,188,004
|
|
2,623,565
|
|
2,909,861
|
|
3,106,279
|
|
Debt
securities
|
|
1,525,448
|
|
1,570,620
|
|
1,618,233
|
|
1,540,604
|
|
1,521,645
|
|
Total loans
|
|
7,476,474
|
|
7,307,475
|
|
7,124,831
|
|
6,949,795
|
|
6,832,595
|
|
Allowance for credit
losses
|
|
(97,776)
|
|
(96,920)
|
|
(94,760)
|
|
(92,728)
|
|
(89,871)
|
|
Deposits
|
|
10,534,171
|
|
10,475,180
|
|
10,610,103
|
|
10,974,228
|
|
11,058,940
|
|
Stockholders'
equity
|
|
1,370,584
|
|
1,340,791
|
|
1,310,882
|
|
1,250,836
|
|
1,195,149
|
|
Book value per common
share
|
|
41.63
|
|
40.70
|
|
39.85
|
|
38.05
|
|
36.37
|
|
Tangible book value per
common share (non-GAAP)(1)
|
|
35.56
|
|
34.62
|
|
33.73
|
|
31.90
|
|
30.20
|
|
Balance Sheet Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
Average loans to
deposits
|
|
70.61 %
|
|
69.85 %
|
|
64.54 %
|
|
62.25 %
|
|
59.62 %
|
|
Average earning assets
to total assets
|
|
92.39
|
|
92.23
|
|
92.52
|
|
92.14
|
|
91.58
|
|
Average stockholders'
equity to average assets
|
|
11.28
|
|
11.17
|
|
10.36
|
|
9.80
|
|
9.63
|
|
Asset Quality Data:
|
|
|
|
|
|
|
|
|
|
|
|
Past due
loans
|
|
$
12,575
|
|
$
8,799
|
|
$
7,258
|
|
$
7,085
|
|
$
3,167
|
|
Nonaccrual loans
(3)
|
|
16,676
|
|
18,047
|
|
17,649
|
|
15,299
|
|
11,962
|
|
Other real estate owned
and repossessed assets
|
|
42,782
|
|
41,612
|
|
38,874
|
|
36,936
|
|
39,419
|
|
Nonaccrual loans to
total loans
|
|
0.22 %
|
|
0.25 %
|
|
0.25 %
|
|
0.22 %
|
|
0.18 %
|
|
Allowance to total
loans
|
|
1.31
|
|
1.33
|
|
1.33
|
|
1.33
|
|
1.32
|
|
Allowance to nonaccrual
loans
|
|
586.34
|
|
537.05
|
|
536.93
|
|
606.10
|
|
751.32
|
|
Net charge-offs to
average loans
|
|
0.02
|
|
0.01
|
|
0.00
|
|
0.01
|
|
0.00
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Tangible Book Value Per Common
Share (non-GAAP)(2):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
$
1,370,584
|
|
$
1,340,791
|
|
$
1,310,882
|
|
$
1,250,836
|
|
$
1,195,149
|
|
Less
goodwill
|
|
182,263
|
|
182,055
|
|
182,055
|
|
182,055
|
|
182,055
|
|
Less intangible assets,
net
|
|
17,591
|
|
18,223
|
|
19,103
|
|
19,983
|
|
20,863
|
|
Tangible stockholders'
equity (non-GAAP)
|
|
$
1,170,730
|
|
$
1,140,513
|
|
$
1,109,724
|
|
$
1,048,798
|
|
$ 992,231
|
|
Common shares
outstanding
|
|
32,921,393
|
|
32,939,256
|
|
32,899,493
|
|
32,875,560
|
|
32,856,387
|
|
Tangible book value per
common share (non-GAAP)
|
|
$
35.56
|
|
$
34.62
|
|
$
33.73
|
|
$
31.90
|
|
$
30.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 $5.7 million of nonaccrual loans at
September 30, 2023.
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2023
|
|
September 30, 2023
|
|
|
|
|
|
Interest
|
|
Average
|
|
|
|
Interest
|
|
Average
|
|
|
|
Average
|
|
Income/
|
|
Yield/
|
|
Average
|
|
Income/
|
|
Yield/
|
|
|
|
Balance
|
|
Expense
|
|
Rate
|
|
Balance
|
|
Expense
|
|
Rate
|
|
|
ASSETS
|
|
|
Earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
7,379,572
|
|
$
122,005
|
|
6.56
|
%
|
$
7,212,231
|
|
$
341,194
|
|
6.33
|
%
|
|
Debt securities
– taxable
|
|
1,552,590
|
|
9,260
|
|
2.37
|
|
1,576,358
|
|
27,659
|
|
2.35
|
|
|
Debt securities
– tax exempt
|
|
2,990
|
|
27
|
|
3.61
|
|
3,239
|
|
65
|
|
2.70
|
|
|
Interest bearing
deposits with banks and FFS
|
|
2,162,655
|
|
29,052
|
|
5.33
|
|
2,362,174
|
|
87,879
|
|
4.97
|
|
|
Total earning
assets
|
|
11,097,807
|
|
160,344
|
|
5.73
|
|
11,154,002
|
|
456,797
|
|
5.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonearning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due
from banks
|
|
197,702
|
|
|
|
|
|
205,269
|
|
|
|
|
|
|
Interest
receivable and other assets
|
|
813,824
|
|
|
|
|
|
810,025
|
|
|
|
|
|
|
Allowance for
credit losses
|
|
(97,591)
|
|
|
|
|
|
(95,614)
|
|
|
|
|
|
|
Total nonearning
assets
|
|
913,935
|
|
|
|
|
|
919,680
|
|
|
|
|
|
|
Total assets
|
|
$
12,011,742
|
|
|
|
|
|
$
12,073,682
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
Interest bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction
deposits
|
|
$
804,122
|
|
$
2,002
|
|
0.99
|
%
|
$
859,301
|
|
$
5,271
|
|
0.82
|
%
|
|
Savings
deposits
|
|
4,646,598
|
|
46,292
|
|
3.95
|
|
4,510,005
|
|
114,450
|
|
3.39
|
|
|
Time
deposits
|
|
816,779
|
|
6,544
|
|
3.18
|
|
756,962
|
|
14,026
|
|
2.48
|
|
|
Short-term
borrowings
|
|
4,937
|
|
49
|
|
3.94
|
|
7,324
|
|
261
|
|
4.76
|
|
|
Subordinated
debt
|
|
86,077
|
|
1,030
|
|
4.75
|
|
86,063
|
|
3,091
|
|
4.80
|
|
|
Total interest bearing
liabilities
|
|
6,358,513
|
|
55,917
|
|
3.49
|
|
6,219,655
|
|
137,099
|
|
2.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest free
funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
bearing deposits
|
|
4,183,422
|
|
|
|
|
|
4,432,349
|
|
|
|
|
|
|
Interest payable
and other liabilities
|
|
114,867
|
|
|
|
|
|
101,574
|
|
|
|
|
|
|
Stockholders'
equity
|
|
1,354,940
|
|
|
|
|
|
1,320,104
|
|
|
|
|
|
|
Total interest free
funds
|
|
5,653,229
|
|
|
|
|
|
5,854,027
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
12,011,742
|
|
|
|
|
|
$
12,073,682
|
|
|
|
|
|
|
Net interest
income
|
|
|
|
$
104,427
|
|
|
|
|
|
$
319,698
|
|
|
|
|
Net interest
spread
|
|
|
|
|
|
2.24
|
%
|
|
|
|
|
2.53
|
%
|
|
Effect of interest free
funds
|
|
|
|
|
|
1.49
|
%
|
|
|
|
|
1.30
|
%
|
|
Net interest
margin
|
|
|
|
|
|
3.73
|
%
|
|
|
|
|
3.83
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original
content:https://www.prnewswire.com/news-releases/bancfirst-corporation-reports-third-quarter-earnings-301962383.html
SOURCE BancFirst
