BANCFIRST CORPORATION REPORTS FOURTH QUARTER EARNINGS

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January 19, 2023 4:30 PM UTC

OKLAHOMA CITY, Jan. 19, 2023 /PRNewswire/ -- BancFirst Corporation (NASDAQ GS: BANF) reported net income of $57.1 million, or $1.70 diluted earnings per share, for the fourth quarter of 2022 compared to net income of $38.2 million, or $1.15 diluted earnings per share, for the fourth quarter of 2021. Net income for the year ended December 31, 2022 was $193.1 million, or $5.77 diluted earnings per share, compared to $167.6 million, or $5.03 diluted earnings per share, for the year ended December 31, 2021.

The Company's net interest income for the fourth quarter of 2022 increased to $110.4 million from $75.9 million for the quarter ended December 31, 2021. Rising short-term interest rates and loan growth drove the increase. The net interest margin for the quarter was 3.83% compared to 2.87% a year ago. The margin for the fourth quarter of 2021 included $4.7 million in PPP fees.  

For the fourth quarter of 2022, the Company recorded a provision for credit losses of $3.8 million compared to a net benefit from reversal of provisions for credit losses of $224,000 for the quarter ended December 31, 2021. The Company believes there is a modest probability of a mild to moderate economic downturn in Oklahoma and Texas and therefore considers the current CECL reserve as a percentage of loans is appropriate.

Noninterest income for the quarter totaled $48.2 million up from $45.7 million last year. The increase in noninterest income in 2022 was mostly attributable to $4.0 million in sweep fees earned as yields have increased on the underlying mutual funds. Noninterest income for the fourth quarter included $3.8 million of income from an equity interest received from a debt previously contracted compared to $3.3 million of income from the same source in the fourth quarter of 2021. Total noninterest expense for the current quarter was $84.6 million, up from $76.8 million for the fourth quarter last year. The current quarter increase included a write down on other real estate owned of $3.7 million, additional expense from the Worthington acquisition, and salary increases. In addition, the fourth quarter of 2022 included $500,000 of amortization from investment in tax credits compared to $2.1 million of amortization from investment in tax credits for the fourth quarter of 2021.

The Company's effective tax rate was 18.55% compared to 15.25% for the fourth quarter of 2021. The effective tax rates for both quarters were lower due to the recognition of the aforementioned tax credits.

At December 31, 2022, the Company's total assets were $12.4 billion compared to $9.4 billion at December 31, 2021. Deposits totaled $11.0 billion, an increase of $2.9 billion from December 31, 2021. The growth in assets was driven by customer deposits that remained in the bank that had been swept into off-balance sheet money market accounts at year-end 2021. Off-balance sheet sweep accounts totaled $3.7 billion at December 31, 2022 compared to $5.1 billion at December 31, 2021. Loans totaled $6.9 billion compared to $6.2 billion at December 31, 2021. Loan growth during 2022, net of acquired loans and PPP loan runoffs, was $578 million, or 9%. Stockholders' equity was $1.3 billion, an increase of $79.1 million over December 31, 2021.

Asset quality remained strong as nonaccrual loans declined to $15.3 million, representing 0.22% of total loans at December 31, 2022 compared to 0.34% at year-end 2021. The allowance for credit losses to total loans was 1.33% at December 31, 2022, down slightly from 1.36% at the end of 2021. Net charge-offs for the quarter were 0.01% of average loans, compared to 0.03% of average loans for the fourth quarter of 2021.

BancFirst Corporation CEO David Harlow commented, "Beginning with our first quarter acquisition of Worthington and followed by strong organic loan growth and margin expansion during the balance of the year, the Company reported record earnings in 2022. Our deposit franchise has held up well with total deposits essentially flat since rates began increasing in March. We believe the Federal Reserve will ultimately be successful in its goal to slow the economy and reduce inflation; however, our outlook for 2023 anticipates a more mild contraction for our region of the country when compared to the U.S. as a whole."

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 107 banking locations serving 59 communities across Oklahoma, Pegasus Bank, with three banking locations in Dallas, Texas and Worthington Bank with one location in Arlington, Texas, one location in Colleyville, Texas and two Fort Worth, Texas locations. 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.

 

BancFirst CorporationSummary Financial Information(Dollars in thousands, except per share and share data - Unaudited)

20224th Qtr

20223rd Qtr

20222nd Qtr

20221st Qtr

20214th Qtr

Condensed Income Statements:  

 Net interest income  

$                   110,352

$                   100,947

$                    86,867

$                    75,507

$                    75,898

Provision for (benefit from) credit losses  

3,776

2,863

501

2,936

(224)

 Noninterest income:

Trust revenue

4,065

4,125

3,949

3,506

3,336

Service charges on deposits

21,603

22,161

21,618

21,375

22,095

Securities transactions

1,116

966

-

(3,915)

630

Income from sales of loans

657

969

1,256

1,666

1,545

Insurance commissions

6,656

7,498

5,302

7,427

6,075

Cash management

6,124

5,624

4,447

3,131

3,115

Other

7,947

7,988

6,026

10,460

8,897

Total noninterest income  

48,168

49,331

42,598

43,650

45,693

 Noninterest expense:

Salaries and employee benefits

48,019

47,741

45,284

43,932

42,887

Occupancy expense, net

5,259

4,930

4,734

4,403

4,521

Depreciation

4,566

4,612

4,647

4,775

4,708

Amortization of intangible assets

880

880

857

831

759

Data processing services

1,928

1,876

1,975

1,805

1,663

Net (income) expense from other real estate owned

6,235

2,392

(510)

1,794

2,412

Marketing and business promotion

2,465

1,945

1,591

2,073

2,080

Deposit insurance

1,209

1,202

1,196

1,128

968

Other

14,044

13,500

13,943

11,771

16,783

   Total noninterest expense  

84,605

79,078

73,717

72,512

76,781

 Income before income taxes  

70,139

68,337

55,247

43,709

45,034

 Income tax expense  

13,013

12,985

10,540

7,794

6,866

 Net income  

$                    57,126

$                    55,352

$                    44,707

$                    35,915

$                    38,168

 Per Common Share Data:  

 Net income-basic  

$                        1.74

$                        1.69

$                        1.36

$                        1.10

$                        1.17

 Net income-diluted  

1.70

1.65

1.34

1.08

1.15

 Cash dividends declared

0.40

0.40

0.36

0.36

0.36

 Common shares outstanding  

32,875,560

32,856,387

32,781,198

32,725,587

32,603,118

 Average common shares outstanding - 

   Basic 

32,868,087

32,825,931

32,749,752

32,666,916

32,585,784

   Diluted 

33,503,937

33,536,558

33,418,482

33,315,333

33,180,680

 Performance Ratios:  

 Return on average assets

1.82 %

1.75 %

1.42 %

1.22 %

1.33 %

 Return on average stockholders' equity

18.62

18.13

15.14

12.33

13.02

 Net interest margin  

3.83

3.48

3.05

2.78

2.87

 Efficiency ratio  

53.37

52.62

56.94

60.85

63.15

 

BancFirst Corporation

Summary Financial Information

(Dollars in thousands, except per share and share data - Unaudited)

Twelve months ended

December 31,

2022

2021

 Condensed Income Statements:  

 Net interest income  

$              373,673

$                   315,657

 Provision for (benefit from) credit losses  

10,076

(8,690)

 Noninterest income:

Trust revenue

15,645

12,912

Service charges on deposits

86,757

83,425

Securities transactions

(1,833)

1,047

Income from sales of loans

4,548

7,282

Insurance commissions

26,883

23,745

Cash management

19,326

12,313

Other

32,421

29,308

Total noninterest income  

183,747

170,032

 Noninterest expense:

Salaries and employee benefits

184,976

166,723

Occupancy expense, net

19,326

18,483

Depreciation

18,600

16,925

Amortization of intangible assets

3,448

3,116

Data processing services

7,584

6,735

Net expense from other real estate owned

9,911

9,089

Marketing and business promotion

8,074

7,403

Deposit insurance

4,735

3,456

Other

53,258

54,051

Total noninterest expense  

309,912

285,981

 Income before income taxes  

237,432

208,398

 Income tax expense  

44,332

40,768

 Net income  

$              193,100

$              167,630

 Per Common Share Data:  

 Net income-basic  

$                     5.89

$                        5.12

 Net income-diluted  

5.77

5.03

 Cash dividends declared

1.52

1.40

 Common shares outstanding  

32,875,560

32,603,118

 Average common shares outstanding - 

   Basic 

32,778,355

32,716,099

   Diluted 

33,439,496

33,314,146

 Performance Ratios:  

 Return on average assets

1.56 %

1.54 %

 Return on average stockholders' equity

16.11

14.88

 Net interest margin  

3.29

3.15

 Efficiency ratio  

55.60

58.88

 

BancFirst Corporation

Summary Financial Information

(Dollars in thousands, except per share and share data - Unaudited)

2022

2022

2022

2022

2021

4th Qtr

3rd Qtr

2nd Qtr

1st Qtr  

4th Qtr

Balance Sheet Data:

Total assets 

$   12,387,863

$   12,452,378

$   12,530,073

$   12,624,431

$     9,405,612

Interest-bearing deposits with banks

2,909,861

3,106,279

3,590,311

3,816,532

1,821,203

Debt securities 

1,540,604

1,521,645

1,205,894

1,211,668

534,500

Total loans 

6,949,795

6,832,595

6,620,643

6,504,477

6,194,218

Allowance for credit losses 

(92,728)

(89,871)

(86,935)

(87,239)

(83,936)

Deposits 

10,974,228

11,058,940

11,142,688

11,250,971

8,091,914

Stockholders' equity 

1,250,836

1,195,149

1,185,695

1,167,802

1,171,734

Book value per common share 

38.05

36.37

36.17

35.68

35.94

Tangible book value per common share (non-GAAP)(1) 

31.90

30.20

29.90

29.51

30.80

Balance Sheet Ratios: 

Average loans to deposits 

62.25 %

59.62 %

58.66 %

59.72 %

60.16 %

Average earning assets to total assets 

92.14

91.58

90.89

91.92

92.13

Average stockholders' equity to average assets 

9.80

9.63

9.40

9.86

10.19

Asset Quality Data:

Past due loans

$           7,085

$           3,167

$           4,771

$           6,360

$           4,964

Nonaccrual loans (5)

15,299

11,962

13,712

17,453

20,892

Restructured loans

2,234

2,249

2,174

2,345

3,665

Total nonperforming and restructured loans

24,618

17,378

20,657

26,158

29,521

Other real estate owned and repossessed assets

36,936

39,419

39,209

39,729

39,553

Total nonperforming and restructured assets

61,554

56,797

59,866

65,887

69,074

Nonaccrual loans to total loans

0.22 %

0.18 %

0.21 %

0.27 %

0.34 %

Nonaccrual loans to total Non-PPP loans (non-GAAP)(3)

0.22

0.18

0.21

0.27

0.34

Nonperforming and restructured loans to total loans

0.35

0.25

0.31

0.40

0.48

Nonperforming and restructured loans to total Non-PPP loans (non-GAAP)(3)

0.35

0.25

0.31

0.40

0.48

Nonperforming and restructured assets to total assets

0.50

0.46

0.48

0.52

0.73

Allowance to total loans

1.33

1.32

1.31

1.34

1.36

Allowance to total Non-PPP loans (non-GAAP)(3)

1.33

1.32

1.31

1.35

1.37

Allowance to nonaccrual loans

606.10

751.32

634.01

499.83

401.76

Allowance to nonperforming and restructured loans

376.67

517.17

420.84

333.51

284.33

Net charge-offs to average loans

0.01

0.00

0.01

0.00

0.03

Reconciliation of Tangible Book Value Per Common Share (non-GAAP)(2):

Stockholders' equity 

$     1,250,836

$     1,195,149

$     1,185,695

$     1,167,802

$     1,171,734

Less goodwill

182,055

182,055

183,639

176,563

149,922

Less intangible assets, net

19,983

20,863

21,743

25,456

17,566

Tangible stockholders' equity (non-GAAP)

$     1,048,798

$       992,231

$       980,313

$       965,783

$     1,004,246

Common shares outstanding

32,875,560

32,856,387

32,781,198

32,725,587

32,603,118

Tangible book value per common share (non-GAAP) 

$           31.90

$           30.20

$           29.90

$           29.51

$           30.80

(1)     Refer to the "Reconciliation of Tangible Book Value per Common Share (non-GAAP)" Table.

(2)     Tangible book value per common share is stockholders' equity less goodwill and intangible assets, net, divided by common shares outstanding. This amount is a non-GAAP financial measure but has been included as it is considered to be a critical metric with which to analyze and evaluate the financial condition and capital strength of the Company. This measure should not be considered a substitute for operating results determined in accordance with GAAP. 

Reconciliation of Non-PPP loan ratios (non-GAAP)(4):

Total loans

$     6,949,795

$     6,832,595

$     6,620,643

$     6,504,477

$     6,194,218

Less PPP loans

1,131

1,140

3,206

30,605

80,412

Total Non-PPP loans (non-GAAP)

$     6,948,664

$     6,831,455

$     6,617,437

$     6,473,872

$     6,113,806

Nonaccrual loans (5)

15,299

11,962

13,712

17,453

20,892

Nonaccrual loans to total Non-PPP loans (non-GAAP)

0.22 %

0.18 %

0.21 %

0.27 %

0.34 %

Total nonperforming and restructured loans

24,618

17,378

20,657

26,158

29,521

Nonperforming and restructured loans to total Non-PPP loans (non-GAAP)

0.35 %

0.25 %

0.31 %

0.40 %

0.48 %

Allowance for credit losses

(92,728)

(89,871)

(86,935)

(87,239)

(83,936)

Allowance to total Non-PPP loans (non-GAAP)

1.33 %

1.32 %

1.31 %

1.35 %

1.37 %

(3)     Refer to the "Reconciliation of Non-PPP loan ratios (non-GAAP)" Table.

(4)     Nonaccrual loans to total Non-PPP loans is nonaccrual loans, divided by total loans less Paycheck Protection Program (PPP) loans. Nonperforming and restructured loans to total Non-PPP loans is nonperforming and restructured loans, divided by total loans less PPP loans. Allowance to total Non-PPP loans is allowance for credit losses, divided bytotal loans less PPP loans. These amounts are non-GAAP financial measures but have been included as they are considered critical metrics with which to analyze and evaluate the financial condition and capital strength of the Company. These measures should not be considered substitutes for operating results determined in accordance with GAAP. 

(5) Government Agencies guarantee approximately $4.7 million of nonaccrual loans at December 31, 2022.

 

BancFirst CorporationConsolidated Average Balance SheetsAnd Interest Margin AnalysisTaxable Equivalent Basis(Dollars in thousands - Unaudited)

Three Months Ended

Twleve Months Ended

December 31, 2022

December 31, 2022

Interest

Average

Interest

Average

Average

Income/

Yield/

Average

Income/

Yield/

Balance

Expense

Rate

Balance

Expense

Rate

ASSETS

Earning assets:

  Loans

$          6,861,657

$              97,667

5.65

%

$          6,611,617

$             336,739

5.09

%

  Debt securities – taxable

1,526,241

8,740

2.27

1,295,762

24,456

1.89

  Debt securities – tax exempt

3,530

29

3.29

3,877

118

3.03

  Interest bearing deposits with banks and FFS

3,057,092

29,449

3.82

3,450,093

58,931

1.71

     Total earning assets

11,448,520

135,885

4.71

11,361,349

420,244

3.70

Nonearning assets:

  Cash and due from banks

227,292

260,028

  Interest receivable and other assets

840,115

865,744

  Allowance for credit losses

(90,599)

(87,567)

     Total nonearning assets

976,808

1,038,205

     Total assets

$        12,425,328

$        12,399,554

LIABILITIES AND STOCKHOLDERS' EQUITY

Interest bearing liabilities:

  Transaction deposits 

$             953,143

$                1,203

0.50

%

$             957,719

$                2,049

0.21

%

  Savings deposits

4,306,704

21,278

1.96

4,280,052

35,598

0.83

  Time deposits

689,953

1,918

1.10

672,179

4,318

0.64

  Short-term borrowings

1,162

11

3.81

4,333

60

1.39

  Subordinated debt

86,033

1,031

4.75

86,013

4,122

4.79

     Total interest bearing liabilities

6,036,995

25,441

1.67

6,000,296

46,147

0.77

Interest free funds:

  Noninterest bearing deposits

5,073,241

5,097,813

  Interest payable and other liabilities

97,914

102,691

  Stockholders' equity

1,217,178

1,198,754

     Total interest free  funds

6,388,333

6,399,258

     Total liabilities and stockholders' equity

$        12,425,328

$        12,399,554

Net interest income

$             110,444

$             374,097

Net interest spread

3.04

%

2.93

%

Effect of interest free funds

0.79

%

0.36

%

Net interest margin

3.83

%

3.29

%

 

Cision View original content:https://www.prnewswire.com/news-releases/bancfirst-corporation-reports-fourth-quarter-earnings-301726129.html

SOURCE BancFirst


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