BancFirst Corporation Reports First Quarter Earnings

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April 19, 2018 4:30 PM UTC

OKLAHOMA CITY, April 19, 2018 /PRNewswire/ -- BancFirst Corporation (NASDAQ GS: BANF) reported net income of $29.6 million, or $0.89 diluted earnings per share, for the first quarter of 2018 compared to net income of $22.1 million, or $0.68 diluted earnings per share, for the first quarter of 2017.  On January 11, 2018 the Company completed the acquisitions of two Oklahoma banking corporations. Consequently, the first quarter of 2018 included one-time acquisition related expenses of approximately $2.2 million, which reduced diluted earnings per share by approximately 5 cents.  Net income for the first quarter of 2017 included the effects of favorable resolutions of two problem loans which resulted in principal recovery of $894,000 and unaccrued interest income of $2.3 million.

The Company's net interest income for the first quarter of 2018 increased to $63.0 million compared to $54.8 million for the first quarter of 2017. The net interest margin for the quarter was 3.66% compared to 3.39% a year ago. The increase in margin was primarily due to the increase in the federal funds rate throughout 2017 and the first quarter of 2018 and the two acquisitions. The provision for loan losses for the first quarter of 2018 was $314,000 compared to $72,000 a year ago.  Net charge-offs for the quarter were 0.01% of average loans, compared to 0.02% for the first quarter of 2017.  Noninterest income for the quarter totaled $30.1 million, compared to $28.1 million last year. Noninterest expense for the quarter totaled $55.9 million compared to $49.6 million last year. The increase in noninterest expense was due to salary increases in 2018 and the two acquisitions. The Company's effective tax rate was 19.8% compared to 33.6% for the first quarter of 2017 and added approximately 15 cents to first quarter diluted earnings per share. The decrease in the effective tax rate was due to the change in tax rates from the Tax Cuts and Jobs Act and exercising of stock options during the quarter. 

At March 31, 2018, the Company's total assets were $7.6 billion, an increase of $362.5 million from December 31, 2017. The increase in total assets was primarily related to the acquisitions during the quarter. Securities of $493.1 million were up slightly from December 31, 2017. Loans totaled $5.0 billion, an increase of $262.5 million from December 31, 2017. Excluding acquired loans of $307.1 million, loans were slightly down from December 31, 2017. Deposits totaled $6.7 billion, an increase of $298.0 million from the December 31, 2017 total, of which $292.8 million was related to the acquisitions. The Company's total stockholders' equity was $838.1 million, an increase of $62.5 million over December 31, 2017.

Asset quality remained strong during the first quarter of 2018.  Nonperforming and restructured assets were 0.69% of total assets at March 31, 2018 compared to 0.61% at December 31, 2017. The allowance to total loans was 1.03% compared to 1.09% at year-end 2017. The allowance to nonperforming and restructured loans was 105.9% compared to 130.6% at year-end 2017.

On January 11, 2018, the Company completed the previously announced acquisitions of two Oklahoma banking corporations. First Wagoner Corporation and its subsidiary bank, First Bank & Trust Company, and First Chandler Corp. and its subsidiary bank, First Bank of Chandler, had combined total assets of approximately $373 million. The Company exchanged a combination of cash and stock for these transactions.

Executive Chairman David Rainbolt commented, "The confluence of reduced corporate income tax, increasing interest rates, a stable Oklahoma economy, and quality acquisitions resulted in a strong quarter for us."

BancFirst Corporation is an Oklahoma based financial services holding company.  The Company's principal subsidiary bank, BancFirst, is Oklahoma's largest state-chartered bank with 107 banking locations serving 58 communities across Oklahoma. 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 Corporation

Summary Financial Information

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

2018

2017

2017

2017

2017

1st Qtr 

4th Qtr 

3rd Qtr 

2nd Qtr 

1st Qtr 

Condensed Income Statements: 

Net interest income 

$     63,035

$     58,699

$      57,233

$     56,439

$     54,768

Provision for loan losses 

314

3,323

3,276

1,841

72

Non-interest income:

Trust revenue

3,129

3,073

3,083

2,894

2,952

Service charges on deposits

16,653

16,693

16,633

16,448

15,778

Securities transactions

(14)

4,412

(22)

(330)

---

Income from sales of loans

651

741

732

816

632

Insurance commissions

5,199

3,917

4,603

3,728

4,563

Cash management

3,021

2,798

2,804

2,799

2,754

Other

1,471

1,199

1,336

1,628

1,406

Total noninterest income 

30,110

32,833

29,169

27,983

28,085

Non-interest expense:

Salaries and employee benefits

34,190

31,477

31,471

31,547

30,654

Occupancy expense, net

3,402

3,327

3,298

2,992

2,974

Depreciation

2,410

2,298

2,493

2,392

2,420

Amortization of intangible assets

733

547

547

547

547

Data processing services

1,203

1,252

1,110

1,097

1,195

Net expense from other real estate owned

26

101

68

202

50

Marketing and business promotion

2,352

1,825

1,790

1,559

2,215

Deposit insurance

619

578

553

542

588

Other

10,955

9,846

9,270

8,075

8,945

Total noninterest expense 

55,890

51,251

50,600

48,953

49,588

Income before income taxes 

36,941

36,958

32,526

33,628

33,193

Income tax expense 

7,321

17,461

10,816

10,446

11,143

Net income 

$     29,620

$     19,497

$      21,710

$     23,182

$     22,050

Per Common Share Data: 

Net income-basic 

$         0.91

$         0.61

$          0.68

$         0.73

$         0.70

Net income-diluted 

0.89

0.59

0.67

0.71

0.68

Cash dividends declared

0.21

0.21

0.21

0.19

0.19

Common shares outstanding 

32,707,166

31,894,563

31,863,063

31,818,438

31,782,552

Average common shares outstanding -

   Basic

32,574,251

31,876,784

31,838,392

31,807,610

31,729,614

   Diluted

33,317,744

32,652,265

32,592,277

32,523,376

32,475,996

Performance Ratios: 

Return on average assets

1.60

%

1.07

%

1.22

%

1.31

%

1.27

%

Return on average equity

14.60

9.97

11.34

12.52

12.37

Net interest margin 

3.66

3.48

3.46

3.43

3.39

Efficiency ratio 

60.00

55.99

58.56

57.99

59.85

 

BancFirst Corporation

Summary Financial Information

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

2018

2017

2017

2017

2017

1st Qtr

4th Qtr

3rd Qtr

2nd Qtr

1st Qtr

Balance Sheet Data:

Total assets

$  7,615,642

$  7,253,156

$  7,132,168

$  7,046,589

$  7,189,637

Interest-bearing deposits with banks

1,590,240

1,541,771

1,530,928

1,533,147

1,857,961

Securities

493,101

469,995

450,009

451,402

463,250

Total loans

4,990,650

4,728,168

4,658,525

4,587,454

4,398,529

Allowance for loan losses

(51,550)

(51,666)

(51,255)

(49,005)

(47,921)

Deposits

6,713,052

6,415,045

6,302,046

6,235,682

6,394,627

Stockholders' equity

838,096

775,629

764,414

748,462

729,873

Book value per common share

25.62

24.32

23.99

23.53

22.97

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

22.61

22.28

21.93

21.44

20.86

Balance Sheet Ratios:

Average loans to deposits

75.42

%

73.63

%

73.59

%

71.47

%

70.13

%

Average earning assets to total assets

93.14

93.36

93.37

93.44

93.45

Average stockholders' equity to average assets

10.95

10.78

10.74

10.46

10.25

Asset Quality Data:

Past due loans

$         3,900

$         2,893

$         2,122

$        2,217

$         2,024

Nonaccrual loans

31,849

31,943

27,665

19,607

23,694

Restructured loans

12,945

4,720

3,603

3,561

2,203

Total nonperforming and restructured loans

48,694

39,556

33,390

25,385

27,921

Other real estate owned and repossessed assets

3,676

4,424

4,099

4,211

4,404

Total nonperforming and restructured assets

52,370

43,980

37,489

29,596

32,325

Nonperforming and restructured loans to total loans

0.98

%

0.84

%

0.72

%

0.55

%

0.63

%

Nonperforming and restructured assets to total assets

0.69

0.61

0.53

0.42

0.45

Allowance to total loans

1.03

1.09

1.10

1.07

1.09

Allowance to nonperforming and restructured loans

105.87

130.62

153.50

193.05

171.63

Net charge-offs to average loans

0.01

0.06

0.02

0.02

0.02

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

Stockholders' equity

$     838,096

$     775,629

$     764,414

$      748,462

$     729,873

Less goodwill

79,796

54,042

54,042

54,042

54,042

Less intangible assets, net

18,782

11,082

11,645

12,203

12,768

Tangible stockholders' equity (non-GAAP)

$     739,518

$     710,505

$     698,727

$     682,217

$     663,063

Common shares outstanding

32,707,166

31,894,563

31,863,063

31,818,438

31,782,552

Tangible book value per common share (non-GAAP)

$         22.61

$         22.28

$         21.93

$          21.44

$         20.86

(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.

 

BancFirst Corporation

Consolidated Average Balance Sheets

And Interest Margin Analysis

Taxable Equivalent Basis

(Dollars in thousands - Unaudited)

Three Months Ended

March 31, 2018

Average

Income/

 Yield/

Balance

Expense

 Rate

ASSETS

Earning assets:

  Loans

$   4,993,902

$   63,055

5.12

%

  Securities – taxable

438,848

1,898

1.75

  Securities – tax exempt

29,444

216

2.98

  Interest bearing deposits with banks

1,536,973

5,886

1.55

     Total earning assets

6,999,167

71,055

4.12

Nonearning assets:

  Cash and due from banks

185,548

  Interest receivable and other assets

382,536

  Allowance for loan losses

(52,479)

     Total nonearning assets

515,605

     Total assets

$   7,514,772

LIABILITIES AND STOCKHOLDERS' EQUITY

Interest-bearing liabilities:

  Transaction deposits                      

$      809,827

$       394

0.20

%

  Savings deposits

2,451,433

5,106

0.84

  Time deposits

777,811

1,769

0.92

  Short-term borrowings

7,996

35

1.79

  Junior subordinated debentures

31,959

535

6.79

     Total interest-bearing liabilities

4,079,026

7,839

0.78

Interest-free funds:

  Noninterest bearing deposits

2,582,195

  Interest payable and other liabilities

30,683

  Stockholders' equity

822,868

     Total interest free-funds

3,435,746

     Total liabilities and stockholders' equity

$   7,514,772

Net interest income

$   63,216

Net interest spread

3.34

%

Effect of interest free funds

0.32

%

Net interest margin

3.66

%

 

Cision View original content:http://www.prnewswire.com/news-releases/bancfirst-corporation-reports-first-quarter-earnings-300633276.html

SOURCE BancFirst


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