BancFirst (BANF) - 2024 Q3 - Quarterly Report

Financial Performance - BancFirst Corporation reported total interest income of $187.65 million for the three months ended September 30, 2024, an increase of 17.2% compared to $160.23 million for the same period in 2023[6]. - Net interest income after provision for credit losses was $111.93 million for the three months ended September 30, 2024, up from $102.00 million in the same period last year, reflecting a growth of 9.5%[6]. - Noninterest income totaled $48.71 million for the three months ended September 30, 2024, compared to $44.45 million for the same period in 2023, marking an increase of 9.1%[6]. - Net income for the three months ended September 30, 2024, was $58.90 million, compared to $50.99 million for the same period in 2023, indicating a year-over-year increase of 15.4%[6]. - Basic earnings per share for the three months ended September 30, 2024, was $1.78, up from $1.55 in the same period last year, reflecting a growth of 14.8%[6]. - Total noninterest expense increased to $86.73 million for the three months ended September 30, 2024, from $81.22 million in the same period last year, representing a rise of 6.2%[6]. Equity and Dividends - Total stockholders' equity increased to $1.58 billion as of September 30, 2024, compared to $1.37 billion at the end of September 2023, showing a growth of 15.2%[7]. - The company declared dividends on common stock of $0.46 per share for the three months ended September 30, 2024, compared to $0.43 per share in the same period last year[7]. Interest and Expenses - BancFirst Corporation's total interest expense for the three months ended September 30, 2024, was $72.69 million, an increase from $55.92 million in the same period of 2023, reflecting a rise of 30.0%[6]. - The provision for credit losses increased to $10,404 from $7,458, indicating a rise of approximately 39.1% year-over-year[4]. Cash Flow and Investments - Cash provided by operating activities increased to $244,068, compared to $190,281 in the same period last year, marking an increase of about 28.3%[4]. - Cash receipts from the sale of loans originated for sale rose to $152,279, up from $118,786, reflecting a growth of approximately 28.2%[4]. - Net cash used in investing activities was $(388,422), an improvement from $(535,996) in the prior year, indicating a reduction of about 27.5%[4]. - The estimated fair value of total debt securities available for sale as of September 30, 2024, was $1,376,075, down from $1,553,905 at the end of 2023[18]. Loans and Credit Quality - Loans held for investment totaled $8,180,361 thousand as of September 30, 2024, representing an increase from $7,656,645 thousand as of December 31, 2023, indicating a growth of approximately 6.8%[24]. - Nonaccrual loans totaled $45,481 thousand as of September 30, 2024, a significant increase from $24,573 thousand as of December 31, 2023[31]. - The company monitors credit quality indicators including loan delinquencies and nonaccrual loans, which are reviewed regularly[34]. - The total past due loans as of September 30, 2024, amounted to $74,633 thousand, with $17,754 thousand past due for 30-59 days and $17,001 thousand for 60-89 days[32]. Charge-offs and Allowance for Credit Losses - Total current-period gross charge-offs reached $1,730 million, a significant increase compared to previous periods[39]. - The allowance for credit losses at the end of the period was $101,882 million, reflecting a provision for losses of $3,031 million during the current period[46]. - The provision for credit losses methodology follows the current expected credit loss (CECL) model, which is detailed in the company's Annual Report[44]. Capital Ratios - BancFirst Corporation's total capital to risk-weighted assets ratio was 17.53% as of September 30, 2024, significantly above the required 8.00%[73]. - The Common Equity Tier 1 Capital ratio for BancFirst Corporation was 15.48%, exceeding the required 4.50%[73]. Stock and Compensation - The Company issued $60 million in subordinated notes with a fixed interest rate of 3.50% per annum, maturing on June 30, 2036[58]. - The stock-based compensation expense for the nine months ended September 30, 2024, was $2,580, up from $2,077 in the same period of 2023[68]. - The total intrinsic value of options exercised in the nine months ended September 30, 2024, was $11,931, compared to $2,507 in the same period of 2023[66]. Market and Fair Value - The fair value of U.S. Treasury securities was $1,331,323,000, down from $1,498,045,000 as of December 31, 2023[82]. - The fair value of derivative assets as of September 30, 2024, was $26,376,000, while derivative liabilities were $24,717,000[82]. - The company’s policy is to recognize transfers in and out of Levels 1, 2, and 3 as of the end of the reporting period[84].