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