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BANCFIRST CORP /OK/ (BANF)·Q2 2024 Earnings Summary

Executive Summary

  • Q2 2024 EPS was $1.51 on net income of $50.6M; revenue (net interest income + noninterest income) was $153.84M. Versus Q1 2024, EPS was flat (Q1: $1.50) and revenue rose; versus Q2 2023, EPS declined from $1.64 while revenue was essentially flat .
  • Strong loan growth (+$394.7M YTD to $8.05B) and deposit growth (+$315.5M YTD to $11.02B) supported net interest income; net interest margin improved sequentially to 3.76% but remained below prior-year 3.87% .
  • Noninterest income fell YoY due to a roughly $5.7M interchange fee reduction from the Durbin Amendment, partially offset by growth in trust, treasury/sweep, and insurance commissions; operating expenses rose on salaries/benefits (+$2.1M YoY) .
  • Management emphasized deposit mix shifts toward interest-bearing accounts and maintained a guarded credit outlook; allowance/loans stayed ~1.24% with nonaccruals rising to 0.55% of loans .

What Went Well and What Went Wrong

What Went Well

  • Continued loan and deposit growth drove net interest income to $109.9M (up from $105.9M YoY); NIM ticked up sequentially to 3.76% .
  • Growth across trust revenue, treasury income/sweep fees, and insurance commissions provided diversification within noninterest income despite Durbin headwinds .
  • CEO tone constructive on operating momentum: “Strong loan growth led the way to another good quarter… Total deposits returned to pre‑March 2023 banking crisis levels” .

What Went Wrong

  • EPS declined YoY to $1.51 from $1.64 on lower noninterest income (Durbin-related) and higher noninterest expense; efficiency ratio worsened to 55.46% vs 52.70% in Q2 2023 .
  • Credit costs modestly higher YoY (provision $3.4M vs $2.8M), and nonaccrual loans rose to $44.0M (0.55% of loans) vs 0.32% at year-end 2023 .
  • Deposit mix shifted materially toward interest-bearing balances, pressuring funding costs and limiting NIM recovery relative to last year .

Financial Results

MetricQ2 2023Q4 2023Q1 2024Q2 2024
Revenue ($USD Millions: NII + Noninterest)$153.90 $150.22 $151.00 $153.84
Net Interest Income ($USD Millions)$105.93 $105.07 $106.10 $109.90
Noninterest Income ($USD Millions)$47.97 $45.16 $44.90 $43.94
Diluted EPS ($)$1.64 $1.46 $1.50 $1.51
Net Interest Margin (%)3.87% 3.67% 3.70% 3.76%
Efficiency Ratio (%)52.70% 59.79% 54.82% 55.46%
Net Income ($USD Millions)$55.01 $48.93 $50.33 $50.64

Segment-like income components (Noninterest income detail):

Noninterest Component ($USD Millions)Q2 2023Q2 2024
Trust Revenue$4.59 $5.49
Service Charges on Deposits$22.27 $17.28
Insurance Commissions$6.23 $6.67
Cash Management$7.93 $9.15
Other$6.10 $4.31

Key Balance Sheet and Asset Quality KPIs:

KPIQ4 2023Q1 2024Q2 2024
Total Assets ($USD Billions)$12.37 $12.60 $12.74
Total Loans ($USD Billions)$7.66 $7.79 $8.05
Total Deposits ($USD Billions)$10.70 $10.91 $11.02
Noninterest-bearing Demand Deposits ($USD Billions)$3.98 $3.85 $3.82
Time Deposits ($USD Billions)$0.96 $1.08 $1.18
Nonaccrual Loans ($USD Millions)$24.57 $41.996 $44.021
Nonaccrual Loans / Total Loans (%)0.32% 0.54% 0.55%
Allowance / Total Loans (%)1.26% 1.25% 1.24%
Net Charge-offs / Avg Loans (%)0.02% 0.05% 0.01%
Book Value per Share ($)43.54 44.57 45.80
Tangible Book Value per Share ($, non-GAAP)37.50 38.56 39.83

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Net Interest MarginQ3 2024 onwardNo formal guidance providedNo formal guidance providedMaintained (no guidance)
Efficiency RatioQ3 2024 onwardNo formal guidance providedNo formal guidance providedMaintained (no guidance)
Credit Costs / AllowanceQ3 2024 onwardNo formal guidance providedGuarded outlook; reserve % relatively unchanged from Q1Commentary only (no numeric guidance)
Dividend per share (Declared)Q2 2024$0.40 (Q2 2023) $0.43 (Q2 2024) Raised YoY

Note: BancFirst did not issue formal quantitative guidance ranges in Q2 materials; commentary emphasized funding mix, NIM dynamics, and credit stance .

Earnings Call Themes & Trends

Transcript not available in our document set; themes inferred from management disclosures across quarters.

TopicPrevious Mentions (Q4 2023)Previous Mentions (Q1 2024)Current Period (Q2 2024)Trend
Fed rate outlook / macroN/A in available docs“Higher rates for longer” signaled; potential impact on banks Expectation for potential rate cuts by year-end; outlook on credit uncertain Easing bias vs Q1; credit caution steady
Deposit mixN/AEarly signs of stabilization; deposits grew, mix shifting Deposits back to pre‑March 2023 levels; mix materially shifted to interest‑bearing Continued shift to interest-bearing
Durbin Amendment impactN/A~$5.3M reduction in interchange fees YoY ~$5.7M reduction in interchange fees YoY Persistent headwind
Credit qualityNonaccruals lower at year-end Nonaccruals rose to 0.54%; reserve flat Nonaccruals 0.55%; allowance/loans 1.24% Slight deterioration; reserves stable
Loan growthLoans up through Q4 Loans +$127.7M QTD Loans +$394.7M YTD; strong growth cited Strengthening

Management Commentary

  • “Strong loan growth led the way to another good quarter… Total deposits returned to pre‑March 2023 banking crisis levels, although the mix has changed materially as noninterest-bearing deposits have migrated to higher yielding account options… the ultimate outlook on credit remains uncertain… allowance for credit losses… remained relatively unchanged from the first quarter.” — CEO David Harlow, Q2 2024 .
  • “Solid quarter fueled by loan growth, deposit growth, and early signs of a stabilization in our deposit mix… CECL reserve percentage was essentially flat… Fed signaled higher rates for longer.” — CEO David Harlow, Q1 2024 .

Q&A Highlights

The Q2 2024 earnings call transcript was not available via our document tools; no Q&A details to report.

Estimates Context

  • S&P Global consensus data for Q2 2024 could not be retrieved due to system limits; therefore, direct S&P consensus values are unavailable at this time.
  • Third‑party sources indicate a beat: EPS $1.51 vs consensus $1.42; revenue $153.84M vs consensus, beat reported at ~2.7% .
  • Implication: Despite YoY EPS decline, delivery came in ahead of external estimates, likely reflecting stronger net interest income and resilient fee lines excluding interchange.

Key Takeaways for Investors

  • Sequential NIM improvement with strong loan growth supports core earnings, but funding mix tilts toward interest‑bearing deposits cap NIM upside vs prior year .
  • Noninterest income headwind from Durbin (~$5.7M YoY) continues; offset requires sustained growth in trust/treasury/sweep and insurance commissions .
  • Credit metrics remain manageable but trending weaker (nonaccruals at 0.55%); reserve coverage steady—monitor macro developments and sector‑specific exposures .
  • Efficiency ratio elevated vs last year (55.46% vs 52.70%); wage inflation and OREO expenses are pressure points—cost discipline a lever to protect returns .
  • Book value and tangible book per share climbed, supported by earnings and capital build; supports valuation resilience in a still‑volatile rate environment .
  • Near‑term trading: Positive bias on estimate beat and NIM sequential uptick; watch deposit mix, interchange revenue trajectory, and any Fed guidance shifts.
  • Medium‑term thesis: Core community bank growth across OK/TX, stable capital, and diversified fee streams can compound, but regulatory headwinds and funding costs require prudent balance sheet management .

Appendix: Source Documents Reviewed

  • Q2 2024 press release and full financial tables .
  • Q2 2024 Form 8‑K including Item 2.02 and Exhibit 99.1 (press release) and full tables .
  • Q1 2024 press release for trend analysis .
  • Q3 2024 press release to track evolving themes .