BANCFIRST CORPORATION REPORTS SECOND QUARTER EARNINGS
OKLAHOMA CITY, July 21, 2022 /PRNewswire/ -- BancFirst Corporation (NASDAQ GS:BANF) reported net income of $44.7 million, or $1.34 diluted earnings per share, for the second quarter of 2022 compared to net income of $48.2 million, or $1.45 diluted earnings per share, for the second quarter of 2021. Net income for the six months ended June 30, 2022 was $80.6 million, or $2.42 per share, compared to $90.7 million, or $2.72 per share, for the first half of 2021.
The Company's net interest income for the second quarter of 2022 increased to $86.9 million from $82.4 million for the quarter ended June 30, 2021. Rising short term interest rates contributed to the increase. The net interest margin for the quarter was 3.05% and 3.32% a year ago. The margin for the second quarter of 2021 was positively impacted by higher PPP fees, which were $11.9 million compared to $400,000 for the current quarter.
For the second quarter of 2022 the Company recorded a provision for credit losses of $501,000 compared to a net benefit from reversal of provisions of $9.9 million for the quarter ended June 30, 2021. Provisions for credit losses have stabilized in 2022 after the economic downturn and recovery from the effects of the COVID pandemic.
Noninterest income for the quarter totaled $42.6 million down from $44.6 million last year. The decrease in noninterest income in 2022 was attributable to a purchase gain of $6.0 million in the second quarter of 2021. Total noninterest expense for the current quarter was relatively flat at $73.7 million but included a gain of $3.1 million from the sale of the Company's prior headquarters that was carried in other real estate owned, as well as a write down of an equity investment of $1.5 million.
The Company's effective tax rate was 19.1% compared to 23.4% for the second quarter of 2021. The lower effective tax rate was driven by the exercising of stock options during the quarter that produced higher tax deductions for compensation, and a lower state income tax rate.
At June 30, 2022, the Company's total assets were $12.5 billion compared to $9.4 billion at December 31, 2021. Deposits totaled $11.1 billion, an increase of $3.1 billion from December 31, 2021. The balance sheet growth was driven by the return of customer deposits from off-balance sheet sweep accounts, continued deposit growth and the acquisition of Worthington National Bank. Loans totaled $6.6 billion compared to $6.2 billion at December 31, 2021. Loan growth during the first two quarters of 2022, net of acquired loans and PPP, was $247 million, or 4%. The Company's total stockholders' equity was $1.2 billion, an increase of $14 million over December 31, 2021.
Asset quality remained strong as nonaccrual loans continued to decline, totaling $13.7 million, which represented 0.21% of total loans at June 30, 2022, down from 0.34% at year-end 2021. The allowance for credit losses to total loans stood at 1.31% at June 30, 2022 down from 1.36% at the end of 2021.
BancFirst Corporation CEO David Harlow commented, "The Company performed well in the second quarter with meaningful core margin expansion as a result of the 150 basis points of increase in the fed funds rate since tightening began in March. All eyes continue to be on the Fed and to what degree its policy will be successful in bringing inflation under control without sending the economy into recession. Regardless of the ultimate outcome, the Company is well positioned with a strong capital base, a credit culture that has outperformed through various cycles, and an Oklahoma/DFW footprint positioned for long-term, sustainable growth."
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, TX and Worthington National 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 Corporation | ||||||||||
2022 | 2022 | 2021 | 2021 | 2021 | ||||||
2nd Qtr | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | ||||||
Condensed Income Statements: | ||||||||||
Net interest income | $ 86,867 | $ 75,507 | $ 75,898 | $ 80,190 | $ 82,363 | |||||
Provision for (benefit from) credit losses | 501 | 2,936 | (224) | 1,483 | (9,949) | |||||
Non-interest income: | ||||||||||
Trust revenue | 3,949 | 3,506 | 3,336 | 3,210 | 3,264 | |||||
Service charges on deposits | 21,618 | 21,375 | 22,095 | 21,706 | 20,524 | |||||
Securities transactions | - | (3,915) | 630 | 150 | 172 | |||||
Income from sales of loans | 1,256 | 1,666 | 1,545 | 1,594 | 2,133 | |||||
Insurance commissions | 5,302 | 7,427 | 6,075 | 6,666 | 5,015 | |||||
Cash management | 4,447 | 3,131 | 3,115 | 3,127 | 3,068 | |||||
Other | 6,026 | 10,460 | 8,897 | 3,333 | 10,442 | |||||
Total noninterest income | 42,598 | 43,650 | 45,693 | 39,786 | 44,618 | |||||
Non-interest expense: | ||||||||||
Salaries and employee benefits | 45,284 | 43,932 | 42,887 | 42,267 | 41,992 | |||||
Occupancy expense, net | 4,734 | 4,403 | 4,521 | 5,086 | 4,528 | |||||
Depreciation | 4,647 | 4,775 | 4,708 | 4,207 | 4,133 | |||||
Amortization of intangible assets | 857 | 831 | 759 | 755 | 809 | |||||
Data processing services | 1,975 | 1,805 | 1,663 | 1,734 | 1,660 | |||||
Net (income) expense from other real estate owned | (510) | 1,794 | 2,412 | 1,810 | 3,357 | |||||
Marketing and business promotion | 1,591 | 2,073 | 2,080 | 1,796 | 1,648 | |||||
Deposit insurance | 1,196 | 1,128 | 968 | 846 | 766 | |||||
Other | 13,943 | 11,771 | 16,783 | 11,713 | 15,130 | |||||
Total noninterest expense | 73,717 | 72,512 | 76,781 | 70,214 | 74,023 | |||||
Income before income taxes | 55,247 | 43,709 | 45,034 | 48,279 | 62,907 | |||||
Income tax expense | 10,540 | 7,794 | 6,866 | 9,529 | 14,715 | |||||
Net income | $ 44,707 | $ 35,915 | $ 38,168 | $ 38,750 | $ 48,192 | |||||
Per Common Share Data: | ||||||||||
Net income-basic | $ 1.36 | $ 1.10 | $ 1.17 | $ 1.18 | $ 1.47 | |||||
Net income-diluted | 1.34 | 1.08 | 1.15 | 1.16 | 1.45 | |||||
Cash dividends declared | 0.36 | 0.36 | 0.36 | 0.36 | 0.34 | |||||
Common shares outstanding | 32,781,198 | 32,725,587 | 32,603,118 | 32,572,217 | 32,784,513 | |||||
Average common shares outstanding - | ||||||||||
Basic | 32,749,752 | 32,666,916 | 32,585,784 | 32,744,104 | 32,779,227 | |||||
Diluted | 33,418,482 | 33,315,333 | 33,180,680 | 33,267,955 | 33,405,923 | |||||
Performance Ratios: | ||||||||||
Return on average assets | 1.42 % | 1.22 % | 1.33 % | 1.37 % | 1.79 % | |||||
Return on average stockholders' equity | 15.14 | 12.33 | 13.02 | 13.42 | 17.42 | |||||
Net interest margin | 3.05 | 2.78 | 2.87 | 3.09 | 3.32 | |||||
Efficiency ratio | 56.94 | 60.85 | 63.15 | 58.52 | 58.29 | |||||
Summary Financial Information | ||||
(Dollars in thousands, except per share and share data - Unaudited) | ||||
Six months ended | ||||
June 30, | ||||
2022 | 2021 | |||
Condensed Income Statements: | ||||
Net interest income | $ 162,374 | $ 159,569 | ||
Provision for (benefit from) credit losses | 3,437 | (9,949) | ||
Non-interest income: | ||||
Trust revenue | 7,455 | 6,366 | ||
Service charges on deposits | 42,993 | 39,624 | ||
Securities transactions | (3,915) | 267 | ||
Income from sales of loans | 2,922 | 4,143 | ||
Insurance commissions | 12,729 | 11,004 | ||
Cash management | 7,578 | 6,071 | ||
Other | 16,486 | 17,078 | ||
Total noninterest income | 86,248 | 84,553 | ||
Non-interest expense: | ||||
Salaries and employee benefits | 89,216 | 81,569 | ||
Occupancy expense, net | 9,137 | 8,876 | ||
Depreciation | 9,422 | 8,010 | ||
Amortization of intangible assets | 1,688 | 1,602 | ||
Data processing services | 3,780 | 3,338 | ||
Net expense from other real estate owned | 1,284 | 4,867 | ||
Marketing and business promotion | 3,664 | 3,527 | ||
Deposit insurance | 2,324 | 1,642 | ||
Other | 25,714 | 25,555 | ||
Total noninterest expense | 146,229 | 138,986 | ||
Income before income taxes | 98,956 | 115,085 | ||
Income tax expense | 18,334 | 24,373 | ||
Net income | $ 80,622 | $ 90,712 | ||
Per Common Share Data: | ||||
Net income-basic | $ 2.46 | $ 2.77 | ||
Net income-diluted | 2.42 | 2.72 | ||
Cash dividends declared | 0.72 | 0.68 | ||
Common shares outstanding | 32,781,198 | 32,784,513 | ||
Average common shares outstanding - | ||||
Basic | 32,708,563 | 32,768,102 | ||
Diluted | 33,366,799 | 33,407,693 | ||
Performance Ratios: | ||||
Return on average assets | 1.32 % | 1.74 % | ||
Return on average stockholders' equity | 13.74 | 16.67 | ||
Net interest margin | 2.92 | 3.34 | ||
Efficiency ratio | 58.82 | 56.93 | ||
BancFirst Corporation | |||||||||||
Summary Financial Information | |||||||||||
(Dollars in thousands, except per share and share data - Unaudited) | |||||||||||
2022 | 2022 | 2021 | 2021 | 2021 | |||||||
2nd Qtr | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | |||||||
Balance Sheet Data: | |||||||||||
Total assets | $ 12,530,073 | $ 12,624,431 | $ 9,405,612 | $ 11,302,771 | $ 11,015,287 | ||||||
Interest-bearing deposits with banks | 3,590,311 | 3,816,532 | 1,821,203 | 3,836,809 | 3,373,099 | ||||||
Debt securities | 1,205,894 | 1,211,668 | 534,500 | 529,484 | 563,771 | ||||||
Total loans | 6,620,643 | 6,504,477 | 6,194,218 | 6,037,886 | 6,207,262 | ||||||
Allowance for credit losses | (86,935) | (87,239) | (83,936) | (86,463) | (83,963) | ||||||
Deposits | 11,142,688 | 11,250,971 | 8,091,914 | 9,992,044 | 9,728,389 | ||||||
Stockholders' equity | 1,185,695 | 1,167,802 | 1,171,734 | 1,146,874 | 1,131,591 | ||||||
Book value per common share | 36.17 | 35.68 | 35.94 | 35.21 | 34.52 | ||||||
Tangible book value per common share (non-GAAP)(1) | 29.90 | 29.51 | 30.80 | 30.04 | 29.35 | ||||||
Balance Sheet Ratios: | |||||||||||
Average loans to deposits | 58.66 % | 59.72 % | 60.16 % | 61.56 % | 65.36 % | ||||||
Average earning assets to total assets | 90.89 | 91.92 | 92.13 | 92.13 | 92.01 | ||||||
Average stockholders' equity to average assets | 9.40 | 9.86 | 10.19 | 10.22 | 10.25 | ||||||
Asset Quality Data: | |||||||||||
Past due loans | $ 4,771 | $ 6,360 | $ 4,964 | $ 5,186 | $ 4,386 | ||||||
Nonaccrual loans (5) | 13,712 | 17,453 | 20,892 | 26,607 | 29,802 | ||||||
Restructured loans | 2,174 | 2,345 | 3,665 | 7,073 | 7,485 | ||||||
Total nonperforming and restructured loans | 20,657 | 26,158 | 29,521 | 38,866 | 41,673 | ||||||
Other real estate owned and repossessed assets | 39,209 | 39,729 | 39,553 | 39,060 | 40,183 | ||||||
Total nonperforming and restructured assets | 59,866 | 65,887 | 69,074 | 77,926 | 81,856 | ||||||
Nonaccrual loans to total loans | 0.21 % | 0.27 % | 0.34 % | 0.44 % | 0.48 % | ||||||
Nonaccrual loans to total Non-PPP loans (non-GAAP)(3) | 0.21 | 0.27 | 0.34 | 0.46 | 0.51 | ||||||
Nonperforming and restructured loans to total loans | 0.31 | 0.40 | 0.48 | 0.64 | 0.67 | ||||||
Nonperforming and restructured loans to total Non-PPP loans (non-GAAP)(3) | 0.31 | 0.40 | 0.48 | 0.67 | 0.71 | ||||||
Nonperforming and restructured assets to total assets | 0.48 | 0.52 | 0.73 | 0.69 | 0.74 | ||||||
Allowance to total loans | 1.31 | 1.34 | 1.36 | 1.43 | 1.35 | ||||||
Allowance to total Non-PPP loans (non-GAAP)(3) | 1.31 | 1.35 | 1.37 | 1.48 | 1.44 | ||||||
Allowance to nonaccrual loans | 634.01 | 499.83 | 401.76 | 324.96 | 281.73 | ||||||
Allowance to nonperforming and restructured loans | 420.84 | 333.51 | 284.33 | 222.46 | 201.48 | ||||||
Net charge-offs to average loans | 0.01 | 0.00 | 0.03 | 0.01 | 0.06 | ||||||
Reconciliation of Tangible Book Value Per Common Share (non-GAAP)(2): | |||||||||||
Stockholders' equity | $ 1,185,695 | $ 1,167,802 | $ 1,171,734 | $ 1,146,874 | $ 1,131,591 | ||||||
Less goodwill | 183,639 | 176,563 | 149,922 | 149,922 | 149,922 | ||||||
Less intangible assets, net | 21,743 | 25,456 | 17,566 | 18,325 | 19,283 | ||||||
Tangible stockholders' equity (non-GAAP) | $ 980,313 | $ 965,783 | $ 1,004,246 | $ 978,627 | $ 962,386 | ||||||
Common shares outstanding | 32,781,198 | 32,725,587 | 32,603,118 | 32,572,217 | 32,784,513 | ||||||
Tangible book value per common share (non-GAAP) | $ 29.90 | $ 29.51 | $ 30.80 | $ 30.04 | $ 29.35 | ||||||
(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 | $ 6,620,643 | $ 6,504,477 | $ 6,194,218 | $ 6,037,886 | $ 6,207,262 | ||||||
Less PPP loans | 3,206 | 30,605 | 80,412 | 201,208 | 368,620 | ||||||
Total Non-PPP loans (non-GAAP) | $ 6,617,437 | $ 6,473,872 | $ 6,113,806 | $ 5,836,678 | $ 5,838,642 | ||||||
Nonaccrual loans (5) | 13,712 | 17,453 | 20,892 | 26,607 | 29,802 | ||||||
Nonaccrual loans to total Non-PPP loans (non-GAAP) | 0.21 % | 0.27 % | 0.34 % | 0.46 % | 0.51 % | ||||||
Total nonperforming and restructured loans | 20,657 | 26,158 | 29,521 | 38,866 | 41,673 | ||||||
Nonperforming and restructured loans to total Non-PPP loans (non-GAAP) | 0.31 % | 0.40 % | 0.48 % | 0.67 % | 0.71 % | ||||||
Allowance for credit losses | (86,935) | (87,239) | (83,936) | (86,463) | (83,963) | ||||||
Allowance to total Non-PPP loans (non-GAAP) | 1.31 % | 1.35 % | 1.37 % | 1.48 % | 1.44 % | ||||||
(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 by total 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 $2.1 million of nonaccrual loans at June 30, 2022. | |||||||||||
BancFirst Corporation | |||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
June 30, 2022 | June 30, 2022 | ||||||||||||
Interest | Average | Interest | Average | ||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||
Balance | Expense | Rate | Balance | Expense | Rate | ||||||||
ASSETS | |||||||||||||
Earning assets: | |||||||||||||
Loans | $ 6,566,437 | $ 78,836 | 4.82 | % | $ 6,463,687 | $ 151,902 | 4.74 | % | |||||
Debt securities – taxable | 1,192,371 | 5,142 | 1.73 | 1,149,037 | 8,923 | 1.57 | |||||||
Debt securities – tax exempt | 3,682 | 28 | 3.08 | 4,225 | 62 | 2.95 | |||||||
Interest bearing deposits with banks and FFS | 3,686,883 | 7,605 | 0.83 | 3,618,260 | 9,363 | 0.52 | |||||||
Total earning assets | 11,449,373 | 91,611 | 3.21 | 11,235,209 | 170,250 | 3.06 | |||||||
Nonearning assets: | |||||||||||||
Cash and due from banks | 291,470 | 280,304 | |||||||||||
Interest receivable and other assets | 943,850 | 864,988 | |||||||||||
Allowance for credit losses | (87,434) | (86,337) | |||||||||||
Total nonearning assets | 1,147,886 | 1,058,955 | |||||||||||
Total assets | $ 12,597,259 | $ 12,294,164 | |||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||
Interest bearing liabilities: | |||||||||||||
Transaction deposits | $ 977,424 | $ 212 | 0.09 | % | $ 959,898 | $ 403 | 0.08 | % | |||||
Savings deposits | 4,328,065 | 2,733 | 0.25 | 4,249,720 | 3,874 | 0.18 | |||||||
Time deposits | 665,660 | 641 | 0.39 | 659,907 | 1,290 | 0.39 | |||||||
Short-term borrowings | 6,716 | 12 | 0.72 | 4,599 | 13 | 0.56 | |||||||
Subordinated debt | 86,006 | 1,031 | 4.81 | 85,999 | 2,061 | 4.83 | |||||||
Total interest bearing liabilities | 6,063,871 | 4,629 | 0.31 | 5,960,123 | 7,641 | 0.26 | |||||||
Interest free funds: | |||||||||||||
Noninterest bearing deposits | 5,223,063 | 5,053,996 | |||||||||||
Interest payable and other liabilities | 126,279 | 97,146 | |||||||||||
Stockholders' equity | 1,184,046 | 1,182,899 | |||||||||||
Total interest free funds | 6,533,388 | 6,334,041 | |||||||||||
Total liabilities and stockholders' equity | $ 12,597,259 | $ 12,294,164 | |||||||||||
Net interest income | $ 86,982 | $ 162,609 | |||||||||||
Net interest spread | 2.90 | % | 2.80 | % | |||||||||
Effect of interest free funds | 0.15 | % | 0.12 | % | |||||||||
Net interest margin | 3.05 | % | 2.92 | % | |||||||||
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SOURCE BancFirst
