BANF BancFirst Corporation

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 18, 2024

 

 

BancFirst Corporation

(Exact name of Registrant as Specified in Its Charter)

 

 

Oklahoma			0-14384	73-1221379
(State or Other Jurisdiction of Incorporation)			(Commission File Number)	(IRS Employer Identification No.)
100 N. Broadway Ave.
Oklahoma City, Oklahoma				73102-8405
(Address of Principal Executive Offices)				(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: 405 270-1086

 

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, $1.00 Par Value Per Share		BANF		Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

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Item 2.02 Results of Operations and Financial Condition.

BancFirst Corporation Reports Fourth Quarter Earnings

On January 18, 2024, BancFirst Corporation announced its results of operations for the quarter ended December 31, 2023. A copy of the related press release is being filed as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference in its entirety.

Item 9.01 Financial Statements and Exhibits.

(d)	Exhibits.
Exhibit No.	Description
99.1	Press Release, dated January 18, 2024, issued by BancFirst Corporation titled “BancFirst Corporation Reports Fourth Quarter Earnings.”
104	Cover Page Interactive Data File (embedded within the inline XBRL document).

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

			BANCFIRST CORPORATION
Date:	January 18, 2024	By:	/s/ Kevin Lawrence
			Kevin Lawrence Executive Vice President Chief Financial Officer

 

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Exhibit 99.1

 

100 N. Broadway Ave

Oklahoma City, OK 73102

www.bancfirst.bank

FOR IMMEDIATE RELEASE

Thursday, January 18, 2024

 

 

BANCFIRST CORPORATION REPORTS FOURTH QUARTER EARNINGS

 

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.”

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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.

For additional information call:

Kevin Lawrence, Chief Financial Officer at (405) 270-1003 or

David Harlow, Chief Executive Officer at (405) 270-1082.

 

 

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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

 

 

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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

 

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	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.

 

 

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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			%

 

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v3.23.4

Document And Entity Information	Jan. 18, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jan. 18, 2024
Entity Registrant Name	BancFirst Corporation
Entity Central Index Key	0000760498
Entity Emerging Growth Company	false
Entity File Number	0-14384
Entity Incorporation, State or Country Code	OK
Entity Tax Identification Number	73-1221379
Entity Address, Address Line One	100 N. Broadway Ave.
Entity Address, City or Town	Oklahoma City
Entity Address, State or Province	OK
Entity Address, Postal Zip Code	73102-8405
City Area Code	405
Local Phone Number	270-1086
Entity Information, Former Legal or Registered Name	Not Applicable
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, $1.00 Par Value Per Share
Trading Symbol	BANF
Security Exchange Name	NASDAQ

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