BancFirst Corporation Reports First Quarter Earnings

OKLAHOMA CITY, April 18, 2019 /PRNewswire/ -- BancFirst Corporation (NASDAQ GS:BANF) reported net income of $31.8 million, or $0.96 diluted earnings per share, for the first quarter of 2019 compared to net income of $29.6 million, or $0.89 diluted earnings per share, for the first quarter of 2018.  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

The Company's net interest income for the first quarter of 2019 increased to $66.9 million compared to $63.0 million for the first quarter of 2018. The net interest margin for the quarter was 3.85% compared to 3.66% a year ago. The increase in margin was primarily due to increases in the federal funds rate throughout 2018. The provision for loan losses for the first quarter of 2019 was $1.7 million compared to $314,000 a year ago. The increase in the provision was primarily due to downgrades of a few commercial loans and loan growth during the quarter. Net charge-offs for the quarter were less than 0.01% of average loans, compared to 0.01% for the first quarter of 2018.  Noninterest income for the quarter totaled $32.0 million, compared to $30.1 million last year. Noninterest expense for the quarter totaled $56.2 million compared to $55.9 million last year. The slight increase in noninterest expense was due to salary increases in 2019 offset by a decrease in other expense due to nonrecurring acquisition related expenses in 2018. The Company's effective tax rate was 22.4% compared to 19.8% for the first quarter of 2018. The lower effective tax rate for the first quarter of 2018 was due to the exercise of stock options.  

At March 31, 2019, the Company's total assets were $7.7 billion, an increase of $134.7 million from December 31, 2018. Securities of $724.9 million were down $47.3 million from December 31, 2018, due to maturing U.S. treasury securities. Loans totaled $5.1 billion, an increase of $66.1 million from December 31, 2018. Deposits totaled $6.7 billion, an increase of $100.9 million from the December 31, 2018 total. The Company's total stockholders' equity was $927.9 million, an increase of $25.1 million over December 31, 2018.

Asset quality remained strong during the first quarter of 2019.  Nonperforming and restructured assets represented 0.58% of total assets at March 31, 2019 and 0.59% at December 31, 2018. The allowance to total loans was 1.05% up slightly from 1.03% at year-end 2018. The allowance to nonperforming and restructured loans was 138.10% compared to 136.29% at year-end 2018.

BancFirst Corporation CEO David Harlow commented, "The Company turned in a good first quarter despite a higher effective tax rate when compared to the first quarter of 2018. Contributing factors include growth in loans and deposits during the quarter, increased net interest income, net interest margin and non-interest income compared to prior year, and continued strong asset quality."

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)





2019


2018


2018


2018


2018



1st Qtr 


4th Qtr 


3rd Qtr 


2nd Qtr 


1st Qtr 


 Condensed Income Statements: 











 Net interest income 

$               66,903


$               66,888


$               65,673


$               64,880


$               63,035


 Provision for loan losses 

1,684


1,516


747


1,225


314


 Non-interest income:











Trust revenue

3,177


3,023


3,281


3,396


3,129


Service charges on deposits

17,663


18,554


18,103


17,537


16,653


Securities transactions

--


10


(64)


115


(14)


Income from sales of loans

698


649


800


802


651


Insurance commissions

5,265


4,593


5,207


3,927


5,199


Cash management

3,776


3,338


3,383


3,381


3,021


Other

1,422


1,684


2,091


1,279


1,471


Total noninterest income 

32,001


31,851


32,801


30,437


30,110













 Non-interest expense:











Salaries and employee benefits

36,171


35,530


35,051


34,776


34,190


Occupancy expense, net

2,627


3,307


3,386


3,396


3,402


Depreciation

2,985


2,965


2,733


2,429


2,410


Amortization of intangible assets

759


777


740


759


733


Data processing services

1,480


1,140


1,418


1,195


1,203


Net expense from other real estate owned

(484)


130


64


19


26


Marketing and business promotion

2,261


2,030


1,997


1,649


2,352


Deposit insurance

533


571


597


640


619


Other

9,874


9,716


9,823


9,393


10,955


Total noninterest expense 

56,206


56,166


55,809


54,256


55,890


 Income before income taxes 

41,014


41,057


41,918


39,836


36,941


 Income tax expense 

9,177


8,332


9,035


9,250


7,321


 Net income 

$               31,837


$               32,725


$               32,883


$               30,586


$               29,620


 Per Common Share Data: 











 Net income-basic 

$                   0.98


$                   1.00


$                   1.01


$                   0.93


$                   0.91


 Net income-diluted 

0.96


0.98


0.98


0.91


0.89


 Cash dividends declared

0.30


0.30


0.30


0.21


0.21


 Common shares outstanding 

32,617,788


32,603,926


32,749,690


32,731,215


32,707,166


 Average common shares outstanding -











   Basic

32,612,399


32,721,626


32,742,480


32,716,350


32,574,251


   Diluted

33,292,852


33,423,458


33,504,143


33,458,858


33,317,744


 Performance Ratios: 











 Return on average assets

1.69

%

1.70

%

1.71

%

1.62

%

1.60

%

 Return on average equity

14.08


14.48


14.86


14.41


14.60


 Net interest margin 

3.85


3.77


3.68


3.70


3.66


 Efficiency ratio 

56.83


56.88


56.67


56.92


60.00













 

BancFirst Corporation

Summary Financial Information

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





2019


2018


2018


2018


2018



1st Qtr 


4th Qtr


3rd Qtr


2nd Qtr


1st Qtr 


 Balance Sheet Data:






















 Total assets

$  7,709,000


$  7,574,258


$  7,602,438


$  7,622,963


$  7,615,642


 Interest-bearing deposits with banks

1,291,447


1,195,824


1,607,157


1,579,577


1,590,240


 Securities

724,872


772,132


477,080


462,871


493,101


 Total loans

5,050,221


4,984,150


4,952,267


5,017,071


4,990,681


 Allowance for loan losses

(52,915)


(51,389)


(51,875)


(52,200)


(51,550)


 Deposits

6,706,386


6,605,495


6,643,131


6,692,174


6,713,052


 Stockholders' equity

927,927


902,789


884,801


862,012


838,096


 Book value per common share

28.45


27.69


27.02


26.34


25.62


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

25.52


24.74


24.06


23.35


22.61


 Balance Sheet Ratios:











 Average loans to deposits

75.34

%

74.24

%

74.76

%

74.38

%

75.42

%

 Average earning assets to total assets

92.42


92.48


93.04


93.11


93.14


 Average stockholders' equity to average assets

12.01


11.76


11.23


11.23


10.95


Asset Quality Data:











 Past due loans

$         2,170


$         1,916


$         4,073


$         2,916


$         3,900


 Nonaccrual loans

21,594


22,603


26,880


29,936


31,849


 Restructured loans

14,552


13,188


13,557


14,527


12,945


 Total nonperforming and restructured loans

38,316


37,707


44,510


47,379


48,694


 Other real estate owned and repossessed assets

6,433


6,873


7,072


3,847


3,676


 Total nonperforming and restructured assets

44,749


44,580


51,582


51,226


52,370


 Nonperforming and restructured loans to total loans

0.76

%

0.76

%

0.90

%

0.94

%

0.98

%

 Nonperforming and restructured assets to total assets

0.58


0.59


0.68


0.67


0.69


 Allowance to total loans

1.05


1.03


1.05


1.04


1.03


 Allowance to nonperforming and restructured loans

138.10


136.29


116.55


110.18


105.87


 Net charge-offs to average loans

0.00


0.04


0.02


0.01


0.01













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












Stockholders' equity

$     927,927


$     902,789


$       884,801


$       862,012


$         838,096


Less goodwill

79,749


79,749


79,733


79,733


79,796


Less intangible assets, net

15,701


16,470


17,257


18,012


18,782


Tangible stockholders' equity (non-GAAP)

$     832,477


$     806,570


$       787,811


$       764,267


$         739,518


Common shares outstanding

32,617,788


32,603,926


32,749,690


32,731,215


32,707,166


 Tangible book value per common share (non-GAAP)

$         25.52


$         24.74


$           24.06


$           23.35


$             22.61













(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, 2019




Average


Income/


 Yield/




Balance


Expense


 Rate


ASSETS








Earning assets:








Loans


$        5,013,308


$           68,874


5.57

%

  Securities – taxable


749,521


4,335


2.35


  Securities – tax exempt


21,492


159


3.00


  Interest bearing deposits with banks


1,273,051


7,750


2.47


     Total earning assets


7,057,372


81,118


4.66










Nonearning assets:








  Cash and due from banks


180,142






  Interest receivable and other assets


450,340






  Allowance for loan losses


(51,976)






     Total nonearning assets


578,506






     Total assets


$        7,635,878














LIABILITIES AND STOCKHOLDERS' EQUITY








Interest-bearing liabilities:








  Transaction deposits                      


$           753,751


$                 662


0.36

%

  Savings deposits


2,625,768


10,301


1.59


  Time deposits


694,663


2,574


1.50


  Short-term borrowings


2,038


10


1.96


  Junior subordinated debentures


26,804


491


7.43


     Total interest-bearing liabilities


4,103,024


14,038


1.39










Interest-free funds:








  Noninterest bearing deposits


2,580,316






  Interest payable and other liabilities


35,544






  Stockholders' equity


916,994






     Total interest free-funds


3,532,854






     Total liabilities and stockholders' equity


$        7,635,878






Net interest income




$           67,080




Net interest spread






3.27

%

Effect of interest free funds






0.58

%

Net interest margin






3.85

%














 

Cision View original content:http://www.prnewswire.com/news-releases/bancfirst-corporation-reports-first-quarter-earnings-300834773.html

SOURCE BancFirst

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