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BancFirst Corporation Reports Second Quarter Earnings

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BancFirst Corporation Reports Second Quarter Earnings

PR Newswire

OKLAHOMA CITY, July 19, 2018 /PRNewswire/ -- BancFirst Corporation (NASDAQ GS:BANF) reported net income of $30.6 million, or $0.91 diluted earnings per share, for the second quarter of 2018 compared to net income of $23.2 million, or $0.71 diluted earnings per share, for the second quarter of 2017.   Net income for the six months ended June 30, 2018 was $60.2 million, or $1.80 per share, compared to $45.2 million, or $1.39 per share, for the first half of 2017.  On January 11, 2018 the Company completed the acquisitions of two Oklahoma banking corporations. Consequently, the first half of 2018 included one-time acquisition related expenses of approximately $2.1 million, which reduced diluted earnings per share by approximately 5 cents in the first quarter.  Net income for the first half 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 second quarter of 2018 increased to $64.9 million compared to $56.4 million for the second quarter of 2017. The net interest margin for the quarter was 3.70% compared to 3.43% 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 second quarter of 2018 was $1.2 million compared to $1.8 million a year ago.  Net charge-offs for the quarter were 0.01% of average loans, compared to 0.02% for the second quarter of 2017.  Noninterest income for the quarter totaled $30.4 million, compared to $28.0 million last year. Noninterest expense for the quarter totaled $54.3 million compared to $49.0 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 23.2% compared to 19.8% for the first quarter of 2018 and 31.1% for the second quarter of 2017. The effective tax rate for the first quarter included the effects of stock option exercises during the quarter. The decrease in the effective tax rate compared to the second 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 quarter. 

At June 30, 2018, the Company's total assets were $7.6 billion, an increase of $369.8 million from December 31, 2017. The increase in total assets was primarily related to the acquisitions during the first quarter. Securities of $462.9 million were down slightly from December 31, 2017. Loans totaled $5.0 billion, a modest increase from March 31, 2018. Loan growth for the 6 months ended June 30, 2018 was primarily from acquired loans. Deposits totaled $6.7 billion, an increase of $277.1 million from the December 31, 2017 total, which was primarily related to the acquisitions. The Company's total stockholders' equity was $862.0 million, an increase of $86.4 million over December 31, 2017.

Asset quality remained strong during the second quarter of 2018.  Nonperforming and restructured assets were 0.67% of total assets at June 30, 2018 compared to 0.61% at December 31, 2017. The allowance to total loans was 1.04% compared to 1.09% at year-end 2017. The allowance to nonperforming and restructured loans was 110.2% 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.

BancFirst Corporation CEO David Harlow commented, "While continuing to successfully assimilate our most recent acquisitions, financial momentum continued in the second quarter; again driven by increasing rates, reduced corporate income taxes and a stable Oklahoma economy. The result was both a solid second quarter and first half of 2018."

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


2018


2017


2017


2017



2nd Qtr 


1st Qtr 


4th Qtr 


3rd Qtr 


2nd Qtr 


 Condensed Income Statements: 











 Net interest income 

$              64,880


$              63,035


$              58,699


$              57,233


$              56,439


 Provision for loan losses 

1,225


314


3,323


3,276


1,841


 Non-interest income:











Trust revenue

3,396


3,129


3,073


3,083


2,894


Service charges on deposits

17,537


16,653


16,693


16,633


16,448


Securities transactions

115


(14)


4,412


(22)


(330)


Income from sales of loans

802


651


741


732


816


Insurance commissions

3,927


5,199


3,917


4,603


3,728


Cash management

3,381


3,021


2,798


2,804


2,799


Other

1,279


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