Company: BANFP
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000950170-25-030159
Chunk: 61

Company: BANCFIRST CORP /OK/
Filing Date: 2025-02-28
Form: 10-K
Item: Item 7
Chunk 61
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4

    2023

    2022

    (Dollars in thousands)

    Rental income
     
    $
    12,231

    $
    11,801

    $
    10,877

    Operating expense

    10,504

    11,429

    10,450

Allowance for Credit Losses/Fair Value Adjustments on Acquired Loans 

The Company determines its provision for credit losses and allowance for credit losses using the expected loss methodology that is referred to as the CECL model. The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist. At December 31, 2024, the allowance for credit losses to total loans stood at 1.24% of total loans, compared to 1.26% at December 31, 2023.     

The overall credit quality of the Company’s loan portfolio has remained strong. Net charge-offs were $6.3 million and $3.4 million for the years ended 2024 and 2023, respectively. The amount of net loan charge-offs is relatively low, equating to 0.08% and 0.05% of average total loans for the years ended December 31, 2024 and 2023, respectively. If unforeseen adverse changes occur in the national or local economy, or in the credit markets, it would be reasonable to expect that the allowance for credit losses would increase in future periods.

ANALYSIS OF ALLOWANCE FOR CREDIT LOSSES 

The following table is a break-out of the allowance for credit losses:

    Year Ended December 31,

    2024

    2023

    (Dollars in thousands)

    Real estate:

    Commercial real estate owner occupied
     
    $
    6,869

    $
    7,483

    Commercial real estate non-owner occupied

    33,097

    33,080

    Construction and development < 60 months

    8,671

    3,950

    Construction residential real estate < 60 months

    2,336

    3,414

    Residential real estate first lien

    4,568

    4,914

    Residential real estate all other

    1,741

    1,646

    Agriculture

    5,696

    6,137

    Commercial non-real estate