Financial Performance Highlights for BancFirst Corporation

BancFirst Corporation, a leading regional bank, has reported its financial results for the first quarter of 2025. The company’s net income for the quarter was $56.1 million, up from $50.3 million in the same period last year. Diluted earnings per share also increased, reaching $1.66 compared to $1.50 in the first quarter of 2024.

Strong Growth in Net Interest Income

The primary driver of BancFirst’s improved financial performance was a 9.3% increase in net interest income, which reached $115.9 million for the quarter. This was largely due to higher loan volume and overall growth in the company’s earning assets. Despite the increase in net interest income, the net interest margin remained unchanged at 3.70% compared to the first quarter of 2024.

Reduced Provision for Credit Losses

The company recorded a provision for credit losses on loans of $1.5 million in the first quarter of 2025, down significantly from $4.0 million in the same period last year. This reduction reflects the continued strong credit quality of BancFirst’s loan portfolio, with net charge-offs declining from $3.5 million in the first quarter of 2024 to just $503,000 in the current quarter.

Growth in Noninterest Income

Noninterest income also increased, rising to $49.0 million from $44.9 million in the first quarter of 2024. This was driven by growth in various revenue streams, including trust revenue, treasury income, sweep fees, and insurance commissions.

Higher Noninterest Expense

On the expense side, noninterest expense grew to $92.2 million, up from $82.8 million in the first quarter of 2024. This increase was primarily due to a $4.4 million expense related to the disposition of certain equity investments that were no longer permissible under the Volcker Rule. Additionally, the company saw a $3.1 million increase in salaries and employee benefits.

Balance Sheet Expansion

BancFirst’s total assets grew to $14.0 billion as of March 31, 2025, an increase of $483.7 million from the end of 2024. Loans increased by $69.6 million to $8.1 billion, while deposits rose by $408.2 million to $12.1 billion. The company’s total stockholders’ equity also increased, reaching $1.7 billion, up $51.6 million from the end of the previous year.

Asset Quality Remains Strong

The company’s asset quality metrics remained strong, with nonaccrual loans declining slightly to 0.70% of total loans as of March 31, 2025, down from 0.72% at the end of 2024. The allowance for credit losses to total loans ratio was unchanged at 1.24%.

Outlook and Risks

BancFirst’s management remains cautiously optimistic about the company’s future performance, but they also acknowledge several potential risks and uncertainties that could impact the business. These include:

• Adverse developments in the banking industry that could affect customer confidence
• Changes in the regulatory environment, including new rules and increased oversight
• Shifts in fiscal, monetary, or regulatory policies that could impact the economy, labor market, and inflation
• Deterioration in the commercial real estate market
• Further shifts in deposit mix from non-interest-bearing to interest-bearing accounts
• Changes in interest rates
• Increased compliance costs and regulatory burdens
• Potential economic downturns at the local, regional, or national level

Overall, BancFirst’s first-quarter results demonstrate the company’s ability to navigate a challenging environment and deliver solid financial performance. The bank’s focus on prudent risk management, diversified revenue streams, and efficient operations have positioned it well for continued success. However, the management team remains vigilant in monitoring potential risks and is prepared to adapt its strategies as needed to address any emerging challenges.