BancFirst reports Q4 EPS $1.46, consensus $1.38

Reports Q4 net charge-offs $3.4M for the year or 0.05% of average loans, compared to $1.4M or 0.02% of average loans for the year ended December 31, 2022. BancFirst Corporation CEO David Harlow commented, “The Company reported record earnings in 2023 at $6.34 diluted earnings per share as we successfully managed through the Federal Reserve’s continued tightening with the Fed Funds rate reaching its highest level in 22 years in July. The ensuing shift in deposit mix out of non-interest bearing accounts into interest bearing accounts put pressure on the net interest margin as the year progressed which we were able to mitigate somewhat with strong loan growth throughout the year. Absent the impact of the Durbin Amendment on interchange, all major non-interest income categories showed good growth during the year. The Company’s earnings will be less in 2024 with a full year of Durbin, ongoing margin pressure anticipated as a result of continued competition for deposits, and increased regulatory compliance costs as a result of crossing the $10B asset threshold. Our current outlook on the economy is less pessimistic than a year ago as reflected in our modestly lower CECL reserve percentage at December 31, 2023, when compared to a year ago.”