BancFirst Corp (BANF) Reports Q3 2023 Earnings: Net Income Drops, Loan Growth Drives Net ...
BancFirst Corp (NASDAQ:BANF) reports a net income of $51.0 million for Q3 2023, a decrease from $55.4 million in Q3 2022.
The company's net interest income for Q3 2023 increased to $104.3 million, driven by rising short-term interest rates and loan growth.
Noninterest income for the quarter totaled $44.4 million, a decrease from $49.3 million in Q3 2022.
The company's total assets were $12.1 billion, a decrease of $273.3 million from December 31, 2022.
On October 19, 2023, BancFirst Corp (NASDAQ:BANF) released its earnings report for the third quarter of 2023. The company reported a net income of $51.0 million, or $1.52 diluted earnings per share, a decrease from the net income of $55.4 million, or $1.65 diluted earnings per share, for the third quarter of 2022. Despite the decrease in net income, 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. This increase was driven by rising short-term interest rates and loan growth.
Financial Highlights
The company's net interest margin for the quarter was 3.73%, a decrease from 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. Noninterest expense for the quarter increased to $81.2 million compared to $79.1 million last year, primarily related to an increase in salaries and employee benefits of $2.5 million.
Balance Sheet and Asset Quality
As of September 30, 2023, BancFirst Corp (NASDAQ:BANF)'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. 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.
CEO Commentary
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 Companys fortress balance sheet and top-tier liquidity position us to compete favorably in the markets that we serve. - BancFirst Corporation CEO David Harlow
This article first appeared on GuruFocus.
