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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


1,471


1,199


1,336


1,628


Total noninterest income 

30,437


30,110


32,833


29,169


27,983













 Non-interest expense:











Salaries and employee benefits

34,776


34,190


31,477


31,471


31,547


Occupancy expense, net

3,396


3,402


3,327


3,298


2,992


Depreciation

2,429


2,410


2,298


2,493


2,392


Amortization of intangible assets

759


733


547


547


547


Data processing services

1,195


1,203


1,252


1,110


1,097


Net expense from other real estate owned

19


26


101


68


202


Marketing and business promotion

1,649


2,352


1,825


1,790


1,559


Deposit insurance

640


619


578


553


542


Other

9,393


10,955


9,846


9,270


8,075


Total noninterest expense 

54,256


55,890


51,251


50,600


48,953


 Income before income taxes 

39,836


36,941


36,958


32,526


33,628


 Income tax expense 

9,250


7,321


17,461


10,816


10,446


 Net income 

$              30,586


$              29,620


$              19,497


$              21,710


$              23,182


 Per Common Share Data: 











 Net income-basic 

$                  0.93


$                  0.91


$                  0.61


$                  0.68


$                  0.73


 Net income-diluted 

0.91


0.89


0.59


0.67


0.71


 Cash dividends declared

0.21


0.21


0.21


0.21


0.19


 Common shares outstanding 

32,731,215


32,707,166


31,894,563


31,863,063


31,818,438


 Average common shares outstanding -











   Basic

32,716,350


32,574,251


31,876,784


31,838,392


31,807,610


   Diluted

33,458,858


33,317,744


32,652,265


32,592,277


32,523,376


 Performance Ratios: 











 Return on average assets

1.62

%

1.60

%

1.07

%

1.22

%

1.31

%

 Return on average equity

14.41


14.60


9.97


11.34


12.52


 Net interest margin 

3.70


3.66


3.48


3.46


3.43


 Efficiency ratio 

56.92


60.00


55.99


58.56


57.99













 

BancFirst Corporation


Summary Financial Information


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


















Six months ended

June 30,









2018


2017


 Condensed Income Statements: 











 Net interest income 







$            127,915


$            111,207


 Provision for loan losses 







1,539


1,913


 Non-interest income:











Trust revenue







6,525


5,846


Service charges on deposits







34,190


32,226


Securities transactions







101


(330)


Income from sales of loans







1,453


1,448


Insurance commissions







9,126


8,291


Cash management







6,402


5,553


Other







2,750


3,034


Total noninterest income 







60,547


56,068













 Non-interest expense:











Salaries and employee benefits







68,966


62,201


Occupancy expense, net







6,798


5,966


Depreciation







4,839


4,812


Amortization of intangible assets







1,492


1,094


Data processing services







2,398


2,292


Net expense from other real estate owned







45


252


Marketing and business promotion







4,001


3,774


Deposit insurance







1,259


1,130


Other







20,348


17,020


Total noninterest expense 







110,146


98,541


 Income before income taxes 







76,777


66,821


 Income tax expense 







16,571


21,589


 Net income 







$              60,206


$              45,232


 Per Common Share Data: 











 Net income-basic 







$                  1.84


$                  1.43


 Net income-diluted 







1.80


1.39


 Cash dividends declared







0.42


0.38


 Common shares outstanding 







32,731,215


31,818,438


 Average common shares outstanding -











   Basic







32,645,693


31,768,828


   Diluted







33,390,263


32,499,990


 Performance Ratios: 











 Return on average assets







1.61

%

1.29

%

 Return on average stockholders' equity







14.50


12.44


 Net interest margin 







3.68


3.41


 Efficiency ratio 







58.44


58.91


 

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


 Balance Sheet Data:






















 Total assets

$  7,622,963


$  7,615,642


$  7,253,156


$  7,132,168


$  7,046,589


 Interest-bearing deposits with banks

1,579,577


1,590,240


1,541,771


1,530,928


1,533,147


 Securities

462,871


493,101


469,995


450,009


451,402


 Total loans

5,017,071


4,990,681


4,728,168


4,658,525


4,587,454


 Allowance for loan losses

(52,200)


(51,550)


(51,666)


(51,255)


(49,005)


 Deposits

6,692,174


6,713,052


6,415,045


6,302,046


6,235,682


 Stockholders' equity

862,012


838,096


775,629


764,414


748,462


 Book value per common share

26.34


25.62


24.32


23.99


23.53


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

23.35


22.61


22.28


21.93


21.44


 Balance Sheet Ratios:











 Average loans to deposits

74.38

%

75.42

%

73.63

%

73.59

%

71.47

%

 Average earning assets to total assets

93.11


93.14


93.36


93.37


93.44


 Average stockholders' equity to average assets

11.23


10.95


10.78


10.74


10.46


Asset Quality Data:











 Past due loans

$        2,916


$        3,900


$        2,893


$        2,122


$       2,217


 Nonaccrual loans

29,936


31,849


31,943


27,665


19,607


 Restructured loans

14,527


12,945


4,720


3,603


3,561


 Total nonperforming and restructured loans

47,379


48,694


39,556


33,390


25,385


 Other real estate owned and repossessed assets

3,847


3,676


4,424


4,099


4,211


 Total nonperforming and restructured assets

51,226


52,370


43,980


37,489


29,596


 Nonperforming and restructured loans to total loans

0.94

%

0.98

%

0.84

%

0.72

%

0.55

%

 Nonperforming and restructured assets to total assets

0.67


0.69


0.61


0.53


0.42


 Allowance to total loans

1.04


1.03


1.09


1.10


1.07


 Allowance to nonperforming and restructured loans

110.18


105.87


130.62


153.50


193.05


 Net charge-offs to average loans

0.01


0.01


0.06


0.02


0.02













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












Stockholders' equity

$     862,012


$     838,096


$     775,629


$     764,414


$        748,462


Less goodwill

79,733


79,796


54,042


54,042


54,042


Less intangible assets, net

18,012


18,782


11,082


11,645


12,203


Tangible stockholders' equity (non-GAAP)

$     764,267


$     739,518


$     710,505


$     698,727


$        682,217


Common shares outstanding

32,731,215


32,707,166


31,894,563


31,863,063


31,818,438


 Tangible book value per common share (non-GAAP)

$         23.35


$         22.61


$          22.28


$          21.93


$            21.44













(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


Six Months Ended



June 30, 2018


June 30, 2018





Interest


Average




Interest


Average



Average


Income/


Yield/


Average


Income/


Yield/



Balance


Expense


Rate


Balance


Expense


Rate


ASSETS













Earning assets:













Loans

$          4,959,604


$          65,750


5.32

%

$      4,976,658


$        128,805


5.22

%

  Securities – taxable

440,420


1,956


1.78


439,638


3,854


1.77


  Securities – tax exempt

28,060


206


2.94


28,748


422


2.96


  Interest bearing deposits with banks

1,633,030


7,420


1.82


1,585,267


13,306


1.69


     Total earning assets

7,061,114


75,332


4.28


7,030,311


146,387


4.20















Nonearning assets:













  Cash and due from banks

184,547






185,045






  Interest receivable and other assets

389,845






386,210






  Allowance for loan losses

(51,802)






(52,138)






     Total nonearning assets

522,590






519,117






     Total assets

$            7,583,704






$        7,549,428



















LIABILITIES AND STOCKHOLDERS' EQUITY

Interest bearing liabilities:













  Transaction deposits                      

$          820,681


$               602


0.29

%

$           815,284


$               996


0.25

%

  Savings deposits

2,502,282


7,189


1.15


2,476,998


12,295


1.00


  Time deposits

754,710


1,919


1.02


766,197


3,688


0.97


  Short-term borrowings

2,030


8


1.55


4,996


43


1.74


  Junior subordinated debentures

31,959


544


6.83


31,959


1,079


6.81


     Total interest bearing liabilities

4,111,662


10,262


1.00


4,095,434


18,101


0.89















Interest free funds:













  Noninterest bearing deposits

2,590,698






2,586,470






  Interest payable and other liabilities

29,752






30,215






  Stockholders' equity

851,592






837,309






     Total interest free  funds

3,472,042






3,453,994






     Total liabilities and stockholders' equity

$            7,583,704






$        7,549,428






Net interest income



$           65,070






$         128,286




Net interest spread





3.28

%





3.31

%

Effect of interest free funds





0.42

%





0.37

%

Net interest margin





3.70

%





3.68

%















 

Cision View original content:http://www.prnewswire.com/news-releases/bancfirst-corporation-reports-second-quarter-earnings-300683833.html

SOURCE BancFirst

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