BANCFIRST CORPORATION REPORTS THIRD QUARTER EARNINGS

Oklahoma City, Oct. 19, 2023 /PRNewswire/ -- BancFirst Corporation (NASDAQ GS:BANF) reported net income of $51.0 million, or $1.52 diluted earnings per share, for the third quarter of 2023 compared to net income of $55.4 million, or $1.65 diluted earnings per share, for the third quarter of 2022. Net income for the nine months ended September 30, 2023 was $163.5 million, or $4.88 per share, compared to $136.0 million, or $4.07 per share, for the nine months ended September 30, 2022.

The Company's net interest income for the third quarter of 2023 increased to $104.3 million compared to $100.9 million for the quarter ended September 30, 2022. Rising short-term interest rates and loan growth drove the increase. The net interest margin for the quarter was 3.73% compared to 3.87% in the second quarter and 3.48% a year ago. The decrease in margin from the second quarter was largely due to an increase in deposit rates and a shift in deposit mix from noninterest bearing to interest bearing deposits. For the third quarter of 2023, the Company recorded a provision for credit losses of $2.3 million for loan growth, compared to $2.9 million for the third quarter of 2022.

Noninterest income for the quarter totaled $44.4 million, compared to $49.3 million last year. The decrease in noninterest income was attributable to the reduction of interchange fees of approximately $5.4 million related to the impact of the Durbin amendment as the Company now exceeds $10 billion in total assets. In addition, noninterest income for the third quarter of 2022 included $3.2 million of income from an equity interest received from a prior loan settlement, which was sold during the second quarter of 2023.

Noninterest expense for the quarter increased to $81.2 million compared to $79.1 million last year. Higher noninterest expense was primarily related to an increase in salaries and employee benefits of $2.5 million.

The Company's effective tax rate for the period was 21.8% compared to 19.0% for the third quarter of 2022. During the first quarter of 2023, the Company adopted ASU 2023-02 which increased income tax expense. Additionally, the lower effective tax rate in 2022 stemmed from the exercise of stock options during the quarter.

At September 30, 2023, the Company's total assets were $12.1 billion, a decrease of $273.3 million from December 31, 2022. Loans totaled $7.5 billion, an increase of $526.7 million from December 31, 2022. Liquidity remained strong with cash at $2.3 billion and a quarterly average loan to deposit ratio of 70.6% at September 30, 2023 compared to 62.3% at year-end. Deposits totaled $10.5 billion, $440.1 million below December 31, 2022 as some large commercial deposits moved from demand accounts into the Company's off balance sheet sweep product. Sweep accounts totaled $4.0 billion at September 30, 2023 up $285.3 million from December 31, 2022. The Company continues to fund itself with community based deposits and does not use brokered or reciprocal deposits. The Company's total stockholders' equity was $1.4 billion, an increase of $119.7 million above December 31, 2022.

Asset quality remained strong with nonaccrual loans of $16.7 million, representing 0.22% of total loans at both September 30, 2023 and December 31, 2022. The allowance for credit losses to total loans stood at 1.31% at September 30, 2023 virtually unchanged from 1.33% at December 31, 2022. Net charge-offs were 0.02% of average loans for the third quarter of 2023 compared to 0.00% for the third quarter of 2022.

BancFirst Corporation CEO David Harlow commented, "The Company reported a solid quarter at $1.52 diluted earnings per share despite the impact of the first full quarter of reduced interchange fees under the Durbin Amendment. Continuing headwinds in the coming months include deposit pricing pressure and increased overhead required to meet the regulatory requirements for a holding company with assets exceeding $10 billion. Regardless, our talented bankers combined with the Company's fortress balance sheet and top-tier liquidity position us to compete favorably in the markets that we serve."

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 106 banking locations serving 59 communities across Oklahoma, Pegasus Bank, with 3 banking locations in the Dallas Metroplex area and Worthington Bank with 3 locations in the Fort Worth Metroplex area, 1 location in Arlington Texas and 1 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.