BancFirst Q1 2024 – Decline in Net Income & Earnings

BancFirst Corporation (NASDAQ GS:BANF) has reported its first quarter earnings for 2024, revealing a net income of $50.3 million, or $1.50 per diluted share, compared to $57.5 million, or $1.72 per diluted share, for the same period in 2023. This signifies a decline in net income and earnings per share from the prior year.

The net interest income for the first quarter of 2024 decreased to $106.1 million from $109.2 million for the same period in 2023. Additionally, the net interest margin for the first quarter of 2024 was 3.70%, down from 3.89% for the first quarter of 2023.

Noninterest income for the quarter totaled $44.9 million compared to $47.8 million in the first quarter of 2023. Notably, the company experienced a decrease in interchange fees related to the impact of the Durbin Amendment, resulting in the reduction of noninterest income.

Meanwhile, noninterest expense for the quarter increased to $82.8 million compared to $80.3 million in the same quarter last year. This increase was primarily attributed to a growth in salaries and employee benefits, which rose by $2.3 million.

The company's total assets at March 31, 2024, were $12.6 billion, reflecting an increase of $230.4 million from December 31, 2023. Loans also grew by $127.7 million, totaling $7.8 billion at the end of the first quarter of 2024. Additionally, deposits saw an increase, totaling $10.9 billion, up by $209.5 million from the end of 2023. Furthermore, sweep accounts were $4.6 billion at the end of the first quarter of 2024, representing a $224.2 million increase from the end of the previous year.

Asset quality remained strong, with nonaccrual loans totaling $42.0 million, representing 0.54% of total loans at March 31, 2024, compared to 0.32% at the end of 2023. The allowance for credit losses to total loans was 1.25% at the end of the first quarter of 2024, virtually unchanged from the previous year.

BancFirst Corporation's CEO, David Harlow, noted, "the company reported a solid quarter fueled by loan growth, deposit growth, and early signs of a stabilization in our deposit mix. Asset quality remained strong and our CECL reserve percentage was essentially flat as our guarded outlook on the economy has not changed materially."

As a result of these announcements, the company's shares have moved 6.8% on the market, and are now trading at a price of $87.56. For more information, read the company's full 8-K submission here.

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