BancFirst Q3 EPS, net income beat estimates on loan growth, higher fee income

By Reuters News


Overview

  • US regional bank's Q3 adjusted EPS and net income beat analyst expectations

  • Net interest income and margin rose yr/yr, driven by higher loan volume and asset growth

  • Company says asset quality metrics remain stable despite increase in nonaccrual loans


Outlook

  • Company expects higher interest rates to dampen future economic activity

  • BancFirst says capital and credit loss allowance levels are sufficient for future cycles

  • BancFirst expects its acquisition of Tulsa-based Spirit Bank to close in October


Result Drivers

  • LOAN AND ASSET GROWTH - Co said higher loan volume and general growth in earning assets drove net interest income

  • NONINTEREST INCOME - Service charges on deposits and treasury income increased, contributing to higher noninterest income

  • EXPENSE INCREASES - Noninterest expense rose, mainly due to higher salaries and employee benefits


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 EPS

Beat

$1.97

$1.94 (3 Analysts)

Q3 Net Income

Beat

$67.25 mln

$65.31 mln (3 Analysts)

Q3 Net Interest Income

$136 mln

Q3 Credit Loss Provision

$3.20 mln

Q3 Net Interest Margin

3.85%


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the banks peer group is "buy."

  • Wall Street's median 12-month price target for BancFirst Corp is $123.50, about 12.1% above its October 20 closing price of $110.16

  • The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 15 three months ago


Reuters Recommended Reads

  • Oct 20 - KeyCorp Q3 revenue rises 8% to record, profit up 24%

  • Oct 19 - Zions Bancorp Q3 EPS rises 20% on improved credit quality

  • Oct 21 - Pinnacle Financial Partners Q3 adjusted profit beats estimates on loan, fee income growth


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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