BancFirst Q2 profit beats expectations helped by higher net interest income

Overview

• BancFirst Q2 net income rises to $62.3 mln, beating analyst expectations, per LSEG data

• EPS for Q2 beats consensus, per LSEG data

• Co's expects acquisition of American Bank of Oklahoma to close in Q3

Outlook

• BancFirst sees potential impact from Fed's interest rate decisions

• Company maintains healthy loan loss reserve amid geopolitical risks

Result Drivers

• HIGHER LOAN VOLUME - Increased loan volume and growth in earning assets drove higher net interest income

• NONINTEREST INCOME GROWTH - Rise in trust revenue, treasury income, sweep fees, and insurance commissions contributed to noninterest income growth

• EXPENSE INCREASE - Growth in salaries, employee benefits, and occupancy expenses led to higher noninterest expenses

Key Details

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 $120.00, about 6.5% below its July 16 closing price of $127.81

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nPn72sQkfa