BANCFIRST CORPORATION REPORTS THIRD QUARTER EARNINGS
MWN-AI** Summary
BancFirst Corporation (NASDAQ: BANF) reported strong earnings for the third quarter of 2025, with a net income of $62.7 million, or $1.85 per diluted share, increasing from $58.9 million, or $1.75 per diluted share, in the same period last year. This growth was primarily driven by a rise in net interest income, which reached $125.6 million, up from $115 million year-over-year, largely due to increased loan volumes and a broader increase in earning assets. The net interest margin improved slightly to 3.79% compared to 3.78% in 2024.
The company noted a provision for credit losses on loans of $4.2 million, up from $3 million in the previous year, indicating some caution in the face of potential economic headwinds. Noninterest income also saw a modest increase to $49.9 million compared to $48.7 million a year earlier, bolstered by growth in trust revenue, treasury income, and various fee categories.
However, noninterest expenses rose to $92.1 million from $86.7 million, driven primarily by salary and employee benefit expenses, which increased by $3.5 million. The company's total assets reached $14.2 billion, a notable increase of $643.8 million since the end of 2024. Loans grew by $254 million, totaling $8.3 billion, while deposits increased to $12.1 billion.
CEO David Harlow remarked on the company's robust performance, attributing solid growth in noninterest income and sustained margins to their results. While factors such as a recent 25-basis-point rate cut by the Federal Reserve present uncertainties, the company remains vigilant with a healthy allowance for credit losses amid a mixed economic outlook.
MWN-AI** Analysis
BancFirst Corporation's third-quarter earnings report indicates a solid performance, with net income rising to $62.7 million, or $1.85 per diluted share, compared to $58.9 million, or $1.75 per diluted share, in the previous year. This growth is attributed largely to increased loan volume and a rise in net interest income, which reached $125.6 million, marking a significant year-over-year improvement. The net interest margin slightly edged up to 3.79%, reflecting effective asset management despite a dynamic interest rate environment.
The bank's robust growth can also be seen in its total assets, which increased by $643.8 million over the year to $14.2 billion, with loans totaling $8.3 billion, up by $254 million. On the flip side, deposit growth of $399.8 million brings total deposits to $12.1 billion. However, the company recorded a rise in noninterest expenses, primarily due to increased salary costs, signaling potential areas for cost management moving forward.
Despite challenges stemming from the broader economic picture, such as a slowing regional economy and a recent Federal Reserve interest rate cut, BancFirst maintains a healthy provision for credit losses and strong asset quality, with nonaccrual loans making up just 0.69% of total loans.
Given these developments, investors should view BancFirst as a stable player in the banking sector, with a robust foundation for future growth. The increasing loan volume and improving asset quality suggest a favorable outlook. However, the rising expense ratios warrant close monitoring. Investors might consider accumulating shares on dips, capitalizing on BancFirst’s demonstrated resilience and strategic focus on growing its core banking operations effectively amidst fluctuating economic conditions.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
PR Newswire
OKLAHOMA CITY, Oct. 17, 2025 /PRNewswire/ -- BancFirst Corporation (NASDAQ GS:BANF) reported net income of $62.7 million, or $1.85 per diluted share, for the third quarter of 2025 compared to net income of $58.9 million, or $1.75 per diluted share, for the third quarter of 2024.
The Company's net interest income for the three-months ended September 30, 2025 increased to $125.6 million in comparison to $115.0 million for the same period in 2024. Higher loan volume along with general growth in earning assets were the primary drivers of the change in net interest income. Net interest margin improved slightly to 3.79% for the third quarter of 2025 from 3.78% for the third quarter of 2024. The Company recorded a provision for credit losses on loans of $4.2 million in the third quarter of 2025 and $3.0 million for the same period in 2024.
Noninterest income for the quarter totaled $49.9 million compared to $48.7 million last year. Trust revenue, treasury income, sweep fees and securities transactions each increased when compared to third quarter last year.
Noninterest expense grew to $92.1 million for the quarter-ended September 30, 2025 compared to $86.7 million in the same quarter in 2024. The increase in noninterest expense was primarily due to growth in salaries and employee benefits of $3.5 million. Also contributing to the increase was occupancy expense, due largely to repairs and maintenance, and increases in other noninterest expense driven primarily by professional fees.
At September 30, 2025, the Company's total assets were $14.2 billion, an increase of $643.8 million from December 31, 2024. Loans grew $254.0 million from December 31, 2024, totaling $8.3 billion at September 30, 2025. Deposits totaled $12.1 billion, an increase of $399.8 million from year-end 2024. Off-balance sheet sweep accounts totaled $4.9 billion at September 30, 2025, down $316.4 million from December 31, 2024. The Company's total stockholders' equity was $1.8 billion, an increase of $161.6 million from the end of 2024.
Asset quality continued to be strong. Nonaccrual loans totaled $57.3 million, representing 0.69% of total loans at September 30, 2025, down from 0.72% at year-end 2024. The allowance for credit losses to total loans was 1.20% at September 30, 2025, down from 1.24% at December 31, 2024. Net charge-offs were $1.7 million for the quarter, compared to $775,000 for the third quarter last year.
BancFirst Corporation CEO David Harlow commented, "Loan growth and a sustained net interest margin led to another strong quarter for the company. Solid growth in noninterest income also contributed positively to the quarter. A mixed bag on the economy, stronger than expected growth and weaker employment prospects resulted in a Fed rate cut of 25 basis points in September, the first rate cut since December 2024. Our outlook is a mixed bag as well; however, on balance, we continue to believe a slowing economy in our region of the country is more likely than not and, as such, we have maintained a healthy allowance for credit losses as a percentage of loans."
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 104 banking locations serving 59 communities across Oklahoma, Pegasus Bank, a Texas state-chartered bank with three banking locations in the Dallas Metroplex area, and Worthington Bank, a Texas state-chartered bank with three locations in the Fort Worth Metroplex area, one location in Arlington Texas and one 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) | ||||||||||
2025 | 2025 | 2025 | 2024 | 2024 | ||||||
3rd Qtr | 2nd Qtr | 1st Qtr | 4th Qtr | 3rd Qtr | ||||||
Condensed Income Statements: | ||||||||||
Net interest income | 125,615 | 121,256 | 115,949 | 115,917 | 114,957 | |||||
Provision for credit losses on loans | 4,222 | 1,239 | 1,461 | (1,400) | 3,031 | |||||
Provision for off-balance sheet credit exposures | 216 | 148 | 125 | - | - | |||||
Noninterest income: | ||||||||||
Trust revenue | 5,850 | 5,795 | 5,539 | 5,551 | 5,672 | |||||
Service charges on deposits | 18,131 | 17,741 | 16,804 | 18,133 | 17,723 | |||||
Securities transactions | 492 | (740) | (333) | 355 | (308) | |||||
Sales of loans | 916 | 830 | 636 | 731 | 721 | |||||
Insurance commissions | 8,954 | 7,920 | 10,410 | 7,914 | 9,391 | |||||
Cash management | 10,338 | 10,573 | 10,051 | 9,221 | 9,189 | |||||
Other | 5,185 | 5,929 | 5,787 | 5,114 | 6,324 | |||||
Total noninterest income | 49,866 | 48,048 | 48,894 | 47,019 | 48,712 | |||||
Noninterest expense: | ||||||||||
Salaries and employee benefits | 57,681 | 55,147 | 54,593 | 54,327 | 54,215 | |||||
Occupancy expense, net | 6,434 | 6,037 | 5,753 | 5,977 | 5,776 | |||||
Depreciation | 4,725 | 4,691 | 4,808 | 4,593 | 4,482 | |||||
Amortization of intangible assets | 862 | 862 | 886 | 887 | 886 | |||||
Data processing services | 2,901 | 2,985 | 2,892 | 2,726 | 2,720 | |||||
Net expense from other real estate owned | 2,778 | 2,941 | 2,658 | 6,446 | 2,751 | |||||
Marketing and business promotion | 2,126 | 2,325 | 2,461 | 2,719 | 2,168 | |||||
Deposit insurance | 1,736 | 1,675 | 1,725 | 1,653 | 1,645 | |||||
Other | 12,829 | 11,536 | 16,403 | 13,007 | 12,091 | |||||
Total noninterest expense | 92,072 | 88,199 | 92,179 | 92,335 | 86,734 | |||||
Income before income taxes | 78,971 | 79,718 | 71,078 | 72,001 | 73,904 | |||||
Income tax expense | 16,317 | 17,371 | 14,966 | 15,525 | 15,001 | |||||
Net income | 62,654 | 62,347 | 56,112 | 56,476 | 58,903 | |||||
Per Common Share Data: | ||||||||||
Net income-basic | 1.88 | 1.87 | 1.69 | 1.71 | 1.78 | |||||
Net income-diluted | 1.85 | 1.85 | 1.66 | 1.68 | 1.75 | |||||
Cash dividends declared | 0.49 | 0.46 | 0.46 | 0.46 | 0.46 | |||||
Common shares outstanding | 33,329,247 | 33,272,131 | 33,241,564 | 33,216,519 | 33,122,689 | |||||
Average common shares outstanding - | ||||||||||
Basic | 33,310,290 | 33,255,015 | 33,232,788 | 33,172,530 | 33,097,164 | |||||
Diluted | 33,864,129 | 33,795,243 | 33,768,873 | 33,750,993 | 33,646,549 | |||||
Performance Ratios: | ||||||||||
Return on average assets | 1.76 % | 1.79 % | 1.66 % | 1.67 % | 1.80 % | |||||
Return on average stockholders' equity | 14.18 | 14.74 | 13.85 | 14.04 | 15.14 | |||||
Net interest margin | 3.79 | 3.75 | 3.70 | 3.68 | 3.78 | |||||
Efficiency ratio | 52.47 | 52.10 | 55.92 | 56.67 | 52.99 |
BancFirst Corporation | ||||||||||
Summary Financial Information | ||||||||||
(Dollars in thousands, except per share and share data - Unaudited) | ||||||||||
2025 | 2025 | 2025 | 2024 | 2024 | ||||||
3rd Qtr | 2nd Qtr | 1st Qtr | 4th Qtr | 3rd Qtr | ||||||
Balance Sheet Data: | ||||||||||
Total assets | $ 14,198,140 | $ 14,045,780 | $ 14,038,055 | $ 13,554,314 | $ 13,313,482 | |||||
Interest-bearing deposits with banks | 3,849,736 | 3,737,763 | 3,706,328 | 3,315,932 | 2,743,578 | |||||
Debt securities | 1,015,941 | 1,104,604 | 1,167,441 | 1,211,754 | 1,376,913 | |||||
Total loans | 8,287,167 | 8,124,497 | 8,102,810 | 8,033,183 | 8,188,202 | |||||
Allowance for credit losses | (99,511) | (96,988) | (100,455) | (99,497) | (101,882) | |||||
Noninterest-bearing demand deposits | 3,816,389 | 3,967,626 | 4,027,797 | 3,907,060 | 3,858,670 | |||||
Money market and interest-bearing checking deposits | 5,393,791 | 5,301,439 | 5,393,995 | 5,231,327 | 5,122,457 | |||||
Savings deposits | 1,251,394 | 1,205,602 | 1,174,685 | 1,110,020 | 1,082,855 | |||||
Time deposits | 1,656,813 | 1,581,525 | 1,530,273 | 1,470,139 | 1,410,370 | |||||
Total deposits | 12,118,387 | 12,056,192 | 12,126,750 | 11,718,546 | 11,474,352 | |||||
Stockholders' equity | 1,782,801 | 1,728,038 | 1,672,827 | 1,621,187 | 1,584,575 | |||||
Book value per common share | 53.49 | 51.94 | 50.32 | 48.81 | 47.84 | |||||
Tangible book value per common share (non-GAAP)(1) | 47.71 | 46.12 | 44.47 | 42.92 | 41.91 | |||||
Balance Sheet Ratios: | ||||||||||
Average loans to deposits | 67.32 % | 67.11 % | 68.08 % | 69.63 % | 72.27 % | |||||
Average earning assets to total assets | 93.00 | 92.97 | 93.10 | 93.14 | 93.02 | |||||
Average stockholders' equity to average assets | 12.38 | 12.14 | 12.00 | 11.87 | 11.88 | |||||
Asset Quality Data: | ||||||||||
Past due loans | 7,959 | 7,515 | 5,120 | 7,739 | 4,628 | |||||
Nonaccrual loans (3) | 57,266 | 49,878 | 56,371 | 57,984 | 45,481 | |||||
Other real estate owned and repossessed assets | 53,233 | 53,022 | 35,542 | 33,665 | 39,519 | |||||
Nonaccrual loans to total loans | 0.69 % | 0.61 % | 0.70 % | 0.72 % | 0.56 % | |||||
Allowance to total loans | 1.20 | 1.19 | 1.24 | 1.24 | 1.24 | |||||
Allowance to nonaccrual loans | 173.77 | 194.45 | 178.20 | 171.59 | 224.01 | |||||
Net charge-offs to average loans | 0.02 | 0.05 | 0.01 | 0.01 | 0.01 | |||||
Reconciliation of Tangible Book Value Per Common Share (non-GAAP)(2): | ||||||||||
Stockholders' equity | 1,782,801 | 1,728,038 | 1,672,827 | 1,621,187 | 1,584,575 | |||||
Less goodwill | 182,263 | 182,263 | 182,263 | 182,263 | 182,263 | |||||
Less intangible assets, net | 10,548 | 11,410 | 12,272 | 13,158 | 14,045 | |||||
Tangible stockholders' equity (non-GAAP) | 1,589,990 | 1,534,365 | 1,478,292 | 1,425,766 | 1,388,267 | |||||
Common shares outstanding | 33,329,247 | 33,272,131 | 33,241,564 | 33,216,519 | 33,122,689 | |||||
Tangible book value per common share (non-GAAP) | 47.71 | 46.12 | 44.47 | 42.92 | 41.91 | |||||
(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 | ||||||||||
(3) Government Agencies guarantee approximately $10.0 million of nonaccrual loans at September 30, 2025. |
BancFirst Corporation | ||||
Summary Financial Information | ||||
(Dollars in thousands, except per share and share data - Unaudited) | ||||
Nine months ended | ||||
September 30, | ||||
2025 | 2024 | |||
Condensed Income Statements: | ||||
Net interest income | 362,820 | 330,957 | ||
Provision for credit losses on loans | 6,922 | 10,404 | ||
Provision for off-balance sheet credit exposures | 489 | — | ||
Noninterest income: | ||||
Trust revenue | 17,184 | 16,250 | ||
Service charges on deposits | 52,676 | 51,431 | ||
Securities transactions | (581) | (258) | ||
Sales of loans | 2,382 | 1,945 | ||
Insurance commissions | 27,284 | 25,514 | ||
Cash management | 30,962 | 26,989 | ||
Other | 16,901 | 15,685 | ||
Total noninterest income | 146,808 | 137,556 | ||
Noninterest expense: | ||||
Salaries and employee benefits | 167,421 | 157,671 | ||
Occupancy expense, net | 18,224 | 16,215 | ||
Depreciation | 14,224 | 13,542 | ||
Amortization of intangible assets | 2,610 | 2,659 | ||
Data processing services | 8,778 | 8,032 | ||
Net expense from other real estate owned | 8,377 | 6,609 | ||
Marketing and business promotion | 6,912 | 6,670 | ||
Deposit insurance | 5,136 | 4,697 | ||
Other | 40,768 | 38,734 | ||
Total noninterest expense | 272,450 | 254,829 | ||
Income before income taxes | 229,767 | 203,280 | ||
Income tax expense | 48,654 | 43,402 | ||
Net income | 181,113 | 159,878 | ||
Per Common Share Data: | ||||
Net income-basic | 5.44 | 4.84 | ||
Net income-diluted | 5.36 | 4.76 | ||
Cash dividends declared | 1.41 | 1.32 | ||
Common shares outstanding | 33,329,247 | 33,122,689 | ||
Average common shares outstanding - | ||||
Basic | 33,266,315 | 33,015,741 | ||
Diluted | 33,812,270 | 33,567,117 | ||
Performance Ratios: | ||||
Return on average assets | 1.74 % | 1.68 % | ||
Return on average stockholders' equity | 14.26 | 14.30 | ||
Net interest margin | 3.75 | 3.75 | ||
Efficiency ratio | 53.46 | 54.39 |
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, 2025 | September 30, 2025 | ||||||||||||
Interest | Average | Interest | Average | ||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||
Balance | Expense | Rate | Balance | Expense | Rate | ||||||||
ASSETS | |||||||||||||
Earning assets: | |||||||||||||
Loans | 8,167,950 | 143,698 | 6.98 | % | 8,094,825 | 420,408 | 6.94 | % | |||||
Securities – taxable | 1,061,971 | 6,515 | 2.43 | 1,131,722 | 20,408 | 2.41 | |||||||
Securities – tax exempt | 1,246 | 11 | 3.47 | 1,849 | 55 | 3.99 | |||||||
Interest bearing deposits with banks and FFS | 3,937,525 | 44,363 | 4.47 | 3,739,945 | 125,017 | 4.47 | |||||||
Total earning assets | 13,168,692 | 194,587 | 5.86 | 12,968,341 | 565,888 | 5.83 | |||||||
Nonearning assets: | |||||||||||||
Cash and due from banks | 205,722 | 210,268 | |||||||||||
Interest receivable and other assets | 882,858 | 860,558 | |||||||||||
Allowance for credit losses | (97,456) | (98,344) | |||||||||||
Total nonearning assets | 991,124 | 972,482 | |||||||||||
Total assets | 14,159,816 | $13,940,823 | |||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||
Interest bearing liabilities: | |||||||||||||
Money market and interest-bearing checking deposits | 5,386,505 | 41,263 | 3.04 | % | 5,337,406 | 122,546 | 3.07 | % | |||||
Savings deposits | 1,230,646 | 9,763 | 3.15 | 1,185,171 | 28,037 | 3.16 | |||||||
Time deposits | 1,627,672 | 16,622 | 4.05 | 1,563,089 | 48,644 | 4.16 | |||||||
Short-term borrowings | 9,304 | 100 | 4.28 | 4,930 | 158 | 4.28 | |||||||
Subordinated debt | 86,192 | 1,030 | 4.74 | 86,177 | 3,091 | 4.80 | |||||||
Total interest bearing liabilities | 8,340,319 | 68,778 | 3.27 | 8,176,773 | 202,476 | 3.31 | |||||||
Interest free funds: | |||||||||||||
Noninterest bearing deposits | 3,888,147 | 3,906,936 | |||||||||||
Interest payable and other liabilities | 178,438 | 159,434 | |||||||||||
Stockholders' equity | 1,752,912 | 1,697,680 | |||||||||||
Total interest free funds | 5,819,497 | 5,764,050 | |||||||||||
Total liabilities and stockholders' equity | 14,159,816 | $13,940,823 | |||||||||||
Net interest income | 125,809 | 363,412 | |||||||||||
Net interest spread | 2.59 | % | 2.52 | % | |||||||||
Effect of interest free funds | 1.20 | % | 1.23 | % | |||||||||
Net interest margin | 3.79 | % | 3.75 | % |
SOURCE BancFirst
FAQ**
How did the increase in net interest income for BancFirst Corporation BANF in the third quarter of 2025 compare to trends in loan growth and interest rates during the same period?
What factors contributed to the rise in noninterest expenses for BancFirst Corporation BANF, particularly in salaries and employee benefits, during the third quarter of 2025?
Despite a decline in nonaccrual loans as a percentage of total loans, what measures is BancFirst Corporation BANF taking to maintain its allowance for credit losses?
Given the comments from CEO David Harlow on economic uncertainty, what strategies is BancFirst Corporation BANF planning to implement to navigate a potentially slowing economy in their operating regions?
**MWN-AI FAQ is based on asking OpenAI questions about BancFirst Corporation (NASDAQ: BANF).
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