BancFirst Corporation Reports Third Quarter Earnings

BancFirst Corporation Reports Third Quarter Earnings

PR Newswire

OKLAHOMA CITY, Oct. 19, 2018 /PRNewswire/ -- BancFirst Corporation (NASDAQ GS: BANF) reported net income of $32.9 million, or $0.98 diluted earnings per share, for the third quarter of 2018 compared to net income of $21.7 million, or $0.67 diluted earnings per share, for the third quarter of 2017.   Net income for the nine months ended September 30, 2018 was $93.1 million, or $2.78 diluted earnings per share, compared to $66.9 million, or $2.06 diluted earnings per share, for the nine months ended September 30, 2017. On January 11, 2018 the Company completed the acquisitions of two Oklahoma banking corporations. Consequently, the first nine months of 2018 included one-time acquisition related expenses of approximately $2.6 million, which reduced diluted earnings per share by approximately 6 cents.  Net income for the nine months ended September 30, 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 third quarter of 2018 increased to $65.7 million compared to $57.2 million for the third quarter of 2017. The net interest margin for the quarter was 3.68% compared to 3.46% a year ago. The increase in margin was primarily due to the increase in the federal funds rate throughout 2017 and 2018 and the two acquisitions in the first quarter of 2018. The provision for loan losses for the third quarter of 2018 was $747,000 compared to $3.3 million a year ago.  Net charge-offs for the third quarter of 2017 and 2018 were both 0.02% of average loans.  Noninterest income for the quarter totaled $32.8 million, compared to $29.2 million last year. The increase in noninterest income was primarily due to the growth in debit card usage fees, insurance commissions and cash management revenue. Noninterest expense for the quarter totaled $55.8 million compared to $50.6 million last year. The increase in noninterest expense was primarily due to salary increases in 2018 and the two acquisitions. The Company's effective tax rate for the third quarter of 2018 was 21.6% compared to 19.8% for the first quarter of 2018 and 33.3% for the third quarter of 2017. The effective tax rate for the first quarter of 2018 included the effects of stock option exercises during the quarter. The decrease in the effective tax rate compared to the third quarter of 2017 was due to the change in tax rates from the Tax Cuts and Jobs Act and exercising of stock options during the third quarter of 2018. 

At September 30, 2018, the Company's total assets were $7.6 billion, an increase of $349.3 million from December 31, 2017. The increase in total assets was primarily related to the acquisitions during the first quarter. Securities of $477.1 million were up slightly from December 31, 2017. Loans totaled $5.0 billion, a slight decrease from June 30, 2018. Loan growth for the nine months ended September 30, 2018 was primarily from acquired loans. Deposits totaled $6.6 billion, an increase of $228.1 million from the December 31, 2017 total, which was primarily related to the acquisitions. The Company's total stockholders' equity was $884.8 million, an increase of $109.2 million over December 31, 2017.

Asset quality remained strong during the third quarter of 2018.  Nonperforming and restructured assets were 0.68% of total assets at September 30, 2018 compared to 0.61% at December 31, 2017. The allowance to total loans was 1.05% compared to 1.09% at year-end 2017. The allowance to nonperforming and restructured loans was 116.5% 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 $378 million. The Company exchanged a combination of cash and stock for these transactions.

On August 31, 2018 the Company's wholly-owned subsidiary, BFTower, LLC, completed the purchase of Cotter Ranch Tower in Oklahoma City for $21.0 million. The Tower consists of an aggregate of 507,000 square feet, has 36 floors and is the second tallest building in Oklahoma City. The Company plans to move its headquarters to this location as soon as renovations are complete.

BancFirst Corporation CEO David Harlow commented, "Rising rates, a lower corporate income tax rate and a stable Oklahoma economy again contributed to significant year over year improvement; non-interest income growth is noteworthy while asset quality remains strong, combining for solid third quarter results."

BancFirst Corporation (the Company) 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



2018



2018



2017



2017





3rd Qtr 



2nd Qtr 



1st Qtr 



4th Qtr 



3rd Qtr 



 Condensed Income Statements: 





















 Net interest income 

$               65,673



$               64,880



$               63,035



$               58,699



$               57,233



 Provision for loan losses 

747



1,225



314



3,323



3,276



 Non-interest income:





















Trust revenue

3,281



3,396



3,129



3,073



3,083



Service charges on deposits

18,103



17,537



16,653



16,693



16,633



Securities transactions

(64)



115



(14)



4,412



(22)



Income from sales of loans

800



802



651



741



732



Insurance commissions

5,207



3,927



5,199



3,917



4,603



Cash management

3,383



3,381



3,021



2,798



2,804



Other

2,091



1,279



1,471



1,199



1,336



Total noninterest income 

32,801



30,437



30,110



32,833



29,169

























 Non-interest expense:





















Salaries and employee benefits

35,051



34,776



34,190



31,477



31,471



Occupancy expense, net

3,386



3,396



3,402



3,327



3,298



Depreciation

2,733



2,429



2,410



2,298



2,493



Amortization of intangible assets

740



759



733



547



547



Data processing services

1,418



1,195



1,203



1,252



1,110



Net expense from other real estate owned

64



19



26



101



68



Marketing and business promotion

1,997



1,649



2,352



1,825



1,790



Deposit insurance

597



640



619



578



553



Other

9,823



9,393



10,955



9,846



9,270



Total noninterest expense 

55,809



54,256



55,890



51,251



50,600



 Income before income taxes 

41,918



39,836



36,941



36,958



32,526



 Income tax expense 

9,035



9,250



7,321



17,461



10,816



 Net income 

$               32,883



$               30,586



$               29,620



$               19,497



$               21,710



 Per Common Share Data: 





















 Net income-basic 

$                   1.01



$                   0.93



$                   0.91



$                   0.61



$                   0.68



 Net income-diluted 

0.98



0.91



0.89



0.59



0.67



 Cash dividends declared

0.30



0.21



0.21



0.21



0.21



 Common shares outstanding 

32,749,690



32,731,215



32,707,166



31,894,563



31,863,063



 Average common shares outstanding -





















   Basic

32,742,480



32,716,350



32,574,251



31,876,784



31,838,392



   Diluted

33,504,143



33,458,858



33,317,744



32,652,265



32,592,277



 Performance Ratios: 





















 Return on average assets

1.71

%

1.62

%

1.60

%

1.07

%

1.22

%

 Return on average equity

14.86



14.41



14.60



9.97



11.34



 Net interest margin 

3.68



3.70



3.66



3.48



3.46



 Efficiency ratio 

56.67



56.92



60.00



55.99



58.56

























 

BancFirst Corporation

Summary Financial Information

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





Nine months ended

September 30,





2018



2017



 Condensed Income Statements: 









 Net interest income 

$             193,588



$             168,440



 Provision for loan losses 

2,286



5,189



 Non-interest income:









Trust revenue

9,806



8,929



Service charges on deposits

52,293



48,859



Securities transactions

37



(352)



Income from sales of loans

2,253



2,180



Insurance commissions

14,333



12,894



Cash management

9,785



8,357



Other

4,841



4,370



Total noninterest income 

93,348



85,237













 Non-interest expense:









Salaries and employee benefits

104,017



93,672



Occupancy expense, net

10,184



9,264



Depreciation

7,572



7,305



Amortization of intangible assets

2,232



1,641



Data processing services

3,816



3,402



Net expense from other real estate owned

109



320



Marketing and business promotion

5,998



5,564



Deposit insurance

1,856



1,683



Other

30,171



26,290



Total noninterest expense 

165,955



149,141



 Income before income taxes 

118,695



99,347



 Income tax expense 

25,606



32,405



 Net income 

$               93,089



$               66,942



 Per Common Share Data: 









 Net income-basic 

$                   2.85



$                   2.11



 Net income-diluted 

2.78



2.06



 Cash dividends declared

0.72



0.59



 Common shares outstanding 

32,749,690



31,863,063



 Average common shares outstanding -









   Basic

32,678,310



31,792,270



   Diluted

33,430,761



32,534,219



 Performance Ratios: 









 Return on average assets

1.64

%

1.26

%

 Return on average stockholders' equity

14.62



12.06



 Net interest margin 

3.68



3.42



 Efficiency ratio 

57.84



58.79



 

BancFirst Corporation

Summary Financial Information

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









2018



2018



2018



2017



2017





3rd Qtr



2nd Qtr



1st Qtr 



4th Qtr 



3rd Qtr 



 Balance Sheet Data:











































 Total assets

$  7,602,438



$  7,622,963



$  7,615,642



$  7,253,156



$  7,132,168



 Interest-bearing deposits with banks

1,607,157



1,579,577



1,590,240



1,541,771



1,530,928



 Securities

477,080



462,871



493,101



469,995



450,009



 Total loans

4,952,267



5,017,071



4,990,681



4,728,168



4,658,525



 Allowance for loan losses

(51,875)



(52,200)



(51,550)



(51,666)



(51,255)



 Deposits

6,643,131



6,692,174



6,713,052



6,415,045



6,302,046



 Stockholders' equity

884,801



862,012



838,096



775,629



764,414



 Book value per common share

27.02



26.34



25.62



24.32



23.99



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

24.06



23.35



22.61



22.28



21.93



 Balance Sheet Ratios:





















 Average loans to deposits

74.76

%

74.38

%

75.42

%

73.63

%

73.59

%

 Average earning assets to total assets

93.04



93.11



93.14



93.36



93.37



 Average stockholders' equity to average assets

11.23



11.23



10.95



10.78



10.74



Asset Quality Data:





















 Past due loans

$         4,073



$         2,916



$         3,900



$         2,893



$         2,122



 Nonaccrual loans

26,880



29,936



31,849



31,943



27,665



 Restructured loans

13,557



14,527



12,945



4,720



3,603



 Total nonperforming and restructured loans

44,510



47,379



48,694



39,556



33,390



 Other real estate owned and repossessed assets

7,072



3,847



3,676



4,424



4,099



 Total nonperforming and restructured assets

51,582



51,226



52,370



43,980



37,489



 Nonperforming and restructured loans to total loans

0.90

%

0.94

%

0.98

%

0.84

%

0.72

%

 Nonperforming and restructured assets to total assets

0.68



0.67



0.69



0.61



0.53



 Allowance to total loans

1.05



1.04



1.03



1.09



1.10



 Allowance to nonperforming and restructured loans

116.55



110.18



105.87



130.62



153.50



 Net charge-offs to average loans

0.02



0.01



0.01



0.06



0.02

























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























Stockholders' equity

$     884,801



$     862,012



$     838,096



$     775,629



$     764,414



Less goodwill

79,733



79,733



79,796



54,042



54,042



Less intangible assets, net

17,257



18,012



18,782



11,082



11,645



Tangible stockholders' equity (non-GAAP)

$     787,811



$     764,267



$     739,518



$     710,505



$     698,727



Common shares outstanding

32,749,690



32,731,215



32,707,166



31,894,563



31,863,063



 Tangible book value per common share (non-GAAP)

$         24.06



$         23.35



$         22.61



$          22.28



$          21.93





























(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



Nine Months Ended





September 30, 2018



September 30, 2018









Interest



Average







Interest



Average





Average



Income/



Yield/



Average



Income/



Yield/





Balance



Expense



Rate



Balance



Expense



Rate



ASSETS

























Earning assets:

























  Loans

$           4,973,580



$           66,852



5.33

%

$        4,975,621



$         195,657



5.26

%

  Securities – taxable

432,935



2,246



2.06



437,379



6,100



1.86



  Securities – tax exempt

23,469



184



3.10



26,969



606



3.00



  Interest bearing deposits with banks

1,657,460



8,254



1.98



1,609,596



21,560



1.79



     Total earning assets

7,087,444



77,536



4.34



7,049,565



223,923



4.25





























Nonearning assets:

























  Cash and due from banks

182,449











184,170











  Interest receivable and other assets

414,096











395,607











  Allowance for loan losses

(52,293)











(52,190)











     Total nonearning assets

544,252











527,587











     Total assets

$            7,631,696











$        7,577,152





































LIABILITIES AND STOCKHOLDERS' EQUITY

Interest bearing liabilities:

























  Transaction deposits                      

$           775,122



$               744



0.38

%

$           801,750



$             1,740



0.29

%

  Savings deposits

2,553,401



8,010



1.24



2,502,746



20,305



1.08



  Time deposits

736,060



2,417



1.30



756,041



6,105



1.08



  Short-term borrowings

8,960



42



1.85



6,332



85



1.79



  Junior subordinated debentures

31,959



547



6.80



31,959



1,626



6.80



     Total interest bearing liabilities

4,105,502



11,760



1.14



4,098,828



29,861



0.97





























Interest free funds:

























  Noninterest bearing deposits

2,610,935











2,594,714











  Interest payable and other liabilities

37,051











32,518











  Stockholders' equity

878,208











851,092











     Total interest free  funds

3,526,194











3,478,324











     Total liabilities and stockholders' equity

$            7,631,696











$        7,577,152











Net interest income





$           65,776











$         194,062







Net interest spread









3.20

%









3.28

%

Effect of interest free funds









0.48

%









0.40

%

Net interest margin









3.68

%









3.68

%





























 

Cision View original content:http://www.prnewswire.com/news-releases/bancfirst-corporation-reports-third-quarter-earnings-300733848.html

SOURCE BancFirst

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