BancFirst Corporation Reports First Quarter Earnings
OKLAHOMA CITY, April 15, 2021 /PRNewswire/ -- BancFirst Corporation (NASDAQ GS:BANF) reported net income of $42.5 million, or $1.27 diluted earnings per share, for the first quarter of 2021 compared to net income of $22.6 million, or $0.68 diluted earnings per share, for the first quarter of 2020. For the first quarter of 2021, no provision for credit losses was recorded, compared to a provision for credit losses of $19.6 million for the first quarter of 2020.
BancFirst Corporation Executive Chairman David Rainbolt commented, "Clearly the worst case scenarios for credit losses resulting from the pandemic are off the table. The consequence is that large reserve balances from last year's provisions do not need to be augmented. Moreover, if the economy continues to progress, we will likely see reversal of those provisions to some degree over the balance of the year."
The Company's net interest income for the first quarter of 2021 increased to $77.2 million compared to $74.1 million for the first quarter of 2020. Net interest income increased for the first quarter of 2021 due to loan growth, PPP fee income of approximately $9.5 million and the decrease in interest rates paid on deposits. The net interest margin for the quarter was 3.36% compared to 3.82% a year ago. Noninterest income for the quarter totaled $39.9 million, compared to $35.1 million last year. The increase in noninterest income was due to a gain from the sale of the Company's Hugo, Oklahoma branch of $2.5 million, $2.4 million in rental income from a real estate property foreclosed on in the fourth quarter of 2020, and a $1.2 million increase in income from sales of mortgage loans, which were partially offset by a $1.3 million decrease in treasury management income. Noninterest expense for the quarter increased to $65.0 million compared to $61.4 million last year because of $1.4 million of expenses related to the aforementioned foreclosed property, and a $2.2 million gain on the sale of other real estate owned in the first quarter of 2020 that reduced noninterest expense. The Company's effective tax rate was 18.5% compared to 20.0% for the first quarter of 2020.
At March 31, 2021, the Company's total assets were $10.5 billion, an increase of $1.3 billion from December 31, 2020. Debt securities of $520.5 million were down $34.7 million from December 31, 2020. Loans totaled $6.4 billion, a decrease of $68.1 million from December 31, 2020 partially due to approximately $21 million of loans that were sold with the Company's Hugo, Oklahoma branch. Deposits totaled $9.4 billion, an increase of $1.3 billion from December 31, 2020. The increase in assets and deposits was primarily related to the Paycheck Protection Program (PPP) and other government stimulus payments. At March 31, 2021, the balance of the PPP loans was $713.7 million. The Company's total stockholders' equity was $1.1 billion, an increase of $26.8 million over December 31, 2020. Off-balance sheet sweep accounts were $2.2 billion at March 31, 2021 compared to $2.7 billion at December 31, 2020.
Nonaccrual loans represent 0.55% of total loans at March 31, 2021, down from 0.58% at year-end 2020. Net charge-offs for the quarter were 0.01% of average loans, compared to 0.02% of average loans for the first quarter of 2020. The allowance for credit losses to total loans was 1.42% at both March 31, 2021 and year-end 2020, and the allowance for credit losses to nonaccrual loans was 257.20% compared to 243.35% at year-end 2020.
On February 19, 2021, the Company entered into a purchase and assumption agreement with The First National Bank and Trust Company of Vinita, Oklahoma to purchase certain of its assets and assume its deposits and certain other obligations. The First National Bank and Trust Company of Vinita is a nationally chartered bank with banking locations in Vinita and Grove, Oklahoma. These banking locations would become branches of BancFirst. As of December 31, 2020, The First National Bank and Trust Company of Vinita had approximately $285 million in total assets, $209 million in loans, and $258 million in deposits. The purchase and assumption is expected to be completed during the second quarter of 2021 and is subject to regulatory approval.
BancFirst Corporation CEO David Harlow commented, "Government stimulus continued to inject liquidity into the economy and drive deposit totals materially higher. Absent PPP, overall loan demand continues to be soft. PPP fees generated from both round 1 and round 2 bolstered net interest income while both core non-interest income and core non-interest expense were essentially flat. With zero provision for the quarter compared to $19.6 million a year ago, a nominally strong quarter at $1.28 per share is the result."
BancFirst Corporation (the Company) is an Oklahoma based financial services holding company. The Company operates two subsidiary banks, BancFirst, an Oklahoma state-chartered bank with 106 banking locations serving 58 communities across Oklahoma, and Pegasus Bank, with 3 banking locations in Dallas, TX. 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) | ||||||||||||||||||||
2021 | 2020 | 2020 | 2020 | 2020 | ||||||||||||||||
1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | ||||||||||||||||
Condensed Income Statements: | ||||||||||||||||||||
Net interest income | $ | 77,206 | $ | 79,535 | $ | 75,852 | $ | 77,208 | $ | 74,073 | ||||||||||
Provision for credit losses | — | 4,992 | 18,740 | 19,333 | 19,583 | |||||||||||||||
Non-interest income: | ||||||||||||||||||||
Trust revenue | 3,102 | 2,976 | 3,131 | 3,368 | 3,655 | |||||||||||||||
Service charges on deposits | 19,100 | 19,796 | 19,078 | 16,760 | 18,804 | |||||||||||||||
Securities transactions | 95 | 156 | — | (595) | 50 | |||||||||||||||
Income from sales of loans | 2,010 | 1,852 | 1,873 | 1,561 | 781 | |||||||||||||||
Insurance commissions | 5,989 | 5,680 | 5,197 | 4,443 | 5,676 | |||||||||||||||
Cash management | 3,003 | 3,135 | 3,701 | 4,255 | 4,320 | |||||||||||||||
Other | 6,636 | 1,825 | 1,595 | 2,290 | 1,859 | |||||||||||||||
Total noninterest income | 39,935 | 35,420 | 34,575 | 32,082 | 35,145 | |||||||||||||||
Non-interest expense: | ||||||||||||||||||||
Salaries and employee benefits | 39,577 | 40,750 | 41,995 | 42,226 | 39,756 | |||||||||||||||
Occupancy expense, net | 4,348 | 4,533 | 4,503 | 3,839 | 3,546 | |||||||||||||||
Depreciation | 3,877 | 3,779 | 3,795 | 3,544 | 3,491 | |||||||||||||||
Amortization of intangible assets | 793 | 915 | 968 | 968 | 964 | |||||||||||||||
Data processing services | 1,678 | 1,763 | 1,669 | 1,629 | 1,692 | |||||||||||||||
Net expense from other real estate owned | 1,510 | 420 | 196 | (12) | (2,135) | |||||||||||||||
Marketing and business promotion | 1,879 | 1,671 | 1,485 | 1,485 | 2,355 | |||||||||||||||
Deposit insurance | 876 | 857 | 723 | 365 | 136 | |||||||||||||||
Other | 10,425 | 10,923 | 10,749 | 10,607 | 11,580 | |||||||||||||||
Total noninterest expense | 64,963 | 65,611 | 66,083 | 64,651 | 61,385 | |||||||||||||||
Income before income taxes | 52,178 | 44,352 | 25,604 | 25,306 | 28,250 | |||||||||||||||
Income tax expense | 9,658 | 8,994 | 4,714 | 4,576 | 5,642 | |||||||||||||||
Net income | $ | 42,520 | $ | 35,358 | $ | 20,890 | $ | 20,730 | $ | 22,608 | ||||||||||
Per Common Share Data: | ||||||||||||||||||||
Net income-basic | $ | 1.30 | $ | 1.08 | $ | 0.64 | $ | 0.64 | $ | 0.69 | ||||||||||
Net income-diluted | 1.27 | 1.06 | 0.63 | 0.63 | 0.68 | |||||||||||||||
Cash dividends declared | 0.34 | 0.34 | 0.34 | 0.32 | 0.32 | |||||||||||||||
Common shares outstanding | 32,771,013 | 32,719,852 | 32,679,191 | 32,662,691 | 32,646,691 | |||||||||||||||
Average common shares outstanding - | ||||||||||||||||||||
Basic | 32,756,852 | 32,690,296 | 32,668,789 | 32,651,262 | 32,679,587 | |||||||||||||||
Diluted | 33,408,116 | 33,275,550 | 33,168,938 | 33,075,493 | 33,287,359 | |||||||||||||||
Performance Ratios: | ||||||||||||||||||||
Return on average assets | 1.69 | % | 1.45 | % | 0.86 | % | 0.88 | % | 1.07 | % | ||||||||||
Return on average stockholders' equity | 15.90 | 13.25 | 7.89 | 7.99 | 8.87 | |||||||||||||||
Net interest margin | 3.36 | 3.54 | 3.40 | 3.54 | 3.82 | |||||||||||||||
Efficiency ratio | 55.46 | 57.08 | 59.84 | 59.16 | 56.20 | |||||||||||||||
BancFirst Corporation | |||||||||||||||||||||
Summary Financial Information | |||||||||||||||||||||
(Dollars in thousands, except per share and share data - Unaudited) | |||||||||||||||||||||
2021 | 2020 | 2020 | 2020 | 2020 | |||||||||||||||||
1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | |||||||||||||||||
Balance Sheet Data: | |||||||||||||||||||||
Total assets | $ | 10,549,305 | $ | 9,212,357 | $ | 9,618,868 | $ | 9,612,453 | $ | 8,669,096 | |||||||||||
Interest-bearing deposits with banks | 2,788,316 | 1,336,394 | 1,609,462 | 1,583,116 | 1,356,826 | ||||||||||||||||
Debt securities | 520,543 | 555,196 | 596,941 | 608,031 | 591,987 | ||||||||||||||||
Total loans | 6,380,108 | 6,448,225 | 6,660,694 | 6,696,856 | 6,006,065 | ||||||||||||||||
Allowance for credit losses | (90,860) | (91,366) | (106,126) | (89,500) | (70,080) | ||||||||||||||||
Deposits | 9,371,940 | 8,064,704 | 8,495,891 | 8,486,671 | 7,573,200 | ||||||||||||||||
Stockholders' equity | 1,094,671 | 1,067,885 | 1,043,752 | 1,034,199 | 1,023,380 | ||||||||||||||||
Book value per common share | 33.40 | 32.64 | 31.94 | 31.66 | 31.35 | ||||||||||||||||
Tangible book value per common share (non-GAAP)(1) | 28.27 | 27.47 | 26.74 | 26.43 | 26.09 | ||||||||||||||||
Balance Sheet Ratios: | |||||||||||||||||||||
Average loans to deposits | 70.84 | % | 77.02 | % | 78.55 | % | 79.78 | % | 77.75 | % | |||||||||||
Average earning assets to total assets | 91.54 | 91.82 | 91.99 | 92.23 | 91.51 | ||||||||||||||||
Average stockholders' equity to average assets | 10.64 | 10.91 | 10.90 | 10.96 | 12.02 | ||||||||||||||||
Asset Quality Data: | |||||||||||||||||||||
Past due loans | $ | 5,282 | $ | 4,802 | $ | 6,412 | $ | 5,382 | $ | 10,065 | |||||||||||
Nonaccrual loans (5) | 35,326 | 37,545 | 82,385 | 49,477 | 45,181 | ||||||||||||||||
Restructured loans | 7,801 | 7,784 | 2,837 | 3,213 | 3,158 | ||||||||||||||||
Total nonperforming and restructured loans | 48,409 | 50,131 | 91,634 | 58,072 | 58,404 | ||||||||||||||||
Other real estate owned and repossessed assets | 30,320 | 32,480 | 4,939 | 4,948 | 6,001 | ||||||||||||||||
Total nonperforming and restructured assets | 78,729 | 82,611 | 96,573 | 63,020 | 64,405 | ||||||||||||||||
Nonaccrual loans to total loans | 0.55 | % | 0.58 | % | 1.24 | % | 0.74 | % | 0.75 | % | |||||||||||
Nonaccrual loans to total Non-PPP loans (non-GAAP)(3) | 0.62 | 0.65 | 1.41 | 0.84 | 0.75 | ||||||||||||||||
Nonperforming and restructured loans to total loans | 0.76 | 0.78 | 1.38 | 0.87 | 0.97 | ||||||||||||||||
Nonperforming and restructured loans to total Non-PPP loans (non-GAAP)(3) | 0.85 | 0.86 | 1.57 | 0.99 | 0.97 | ||||||||||||||||
Nonperforming and restructured assets to total assets | 0.75 | 0.90 | 1.00 | 0.66 | 0.74 | ||||||||||||||||
Allowance for credit losses to total loans | 1.42 | 1.42 | 1.59 | 1.34 | 1.17 | ||||||||||||||||
Allowance for credit losses to total Non-PPP loans (non-GAAP)(3) | 1.60 | 1.58 | 1.82 | 1.52 | 1.17 | ||||||||||||||||
Allowance for credit losses to nonaccrual loans | 257.20 | 243.35 | 128.82 | 180.89 | 155.11 | ||||||||||||||||
Allowance for credit losses to nonperforming and restructured loans | 187.69 | 182.26 | 115.81 | 154.12 | 119.99 | ||||||||||||||||
Net charge-offs to average loans | 0.01 | 0.30 | 0.03 | 0.00 | 0.02 | ||||||||||||||||
Reconciliation of Tangible Book Value Per Common Share (non-GAAP)(2): | |||||||||||||||||||||
Stockholders' equity | $ | 1,094,671 | $ | 1,067,885 | $ | 1,043,752 | $ | 1,034,199 | $ | 1,023,380 | |||||||||||
Less goodwill | 149,922 | 149,922 | 149,922 | 149,922 | 149,923 | ||||||||||||||||
Less intangible assets, net | 18,206 | 18,999 | 19,914 | 20,882 | 21,850 | ||||||||||||||||
Tangible stockholders' equity (non-GAAP) | $ | 926,543 | $ | 898,964 | $ | 873,916 | $ | 863,395 | $ | 851,607 | |||||||||||
Common shares outstanding | 32,771,013 | 32,719,852 | 32,679,191 | 32,662,691 | 32,646,691 | ||||||||||||||||
Tangible book value per common share (non-GAAP) | $ | 28.27 | $ | 27.47 | $ | 26.74 | $ | 26.43 | $ | 26.09 | |||||||||||
(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 | $ | 6,380,108 | $ | 6,448,225 | $ | 6,660,694 | $ | 6,696,856 | $ | 6,006,065 | |||||||||||
Less PPP loans | 713,714 | 652,693 | 831,703 | 825,093 | — | ||||||||||||||||
Total Non-PPP loans (non-GAAP) | $ | 5,666,394 | $ | 5,795,532 | $ | 5,828,991 | $ | 5,871,763 | $ | 6,006,065 | |||||||||||
Nonaccrual loans (5) | 35,326 | 37,545 | 82,385 | 49,477 | 45,181 | ||||||||||||||||
Nonaccrual loans to total Non-PPP loans (non-GAAP) | 0.62 | % | 0.65 | % | 1.41 | % | 0.84 | % | 0.75 | % | |||||||||||
Total nonperforming and restructured loans | 48,409 | 50,131 | 91,634 | 58,072 | 58,404 | ||||||||||||||||
Nonperforming and restructured loans to total Non-PPP loans (non-GAAP) | 0.85 | % | 0.86 | % | 1.57 | % | 0.99 | % | 0.97 | % | |||||||||||
Allowance for credit losses | (90,860) | (91,366) | (106,126) | (89,500) | (70,080) | ||||||||||||||||
Allowance for credit losses to total Non-PPP loans (non-GAAP) | 1.60 | % | 1.58 | % | 1.82 | % | 1.52 | % | 1.17 | % | |||||||||||
(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 $6.6 million of nonaccrual loans at March 31, 2021. | |||||||||||||||||||||
BancFirst Corporation Consolidated Average Balance Sheets And Interest Margin Analysis Taxable Equivalent Basis (Dollars in thousands - Unaudited) | |||||||||||||
Three Months Ended | |||||||||||||
March 31, 2021 | |||||||||||||
Interest | Average | ||||||||||||
Average | Income/ | Yield/ | |||||||||||
Balance | Expense | Rate | |||||||||||
ASSETS | |||||||||||||
Earning assets: | |||||||||||||
Loans | $ | 6,400,845 | $ | 77,766 | 4.93 | % | |||||||
Securities – taxable | 521,698 | 1,693 | 1.32 | ||||||||||
Securities – tax exempt | 19,340 | 88 | 1.84 | ||||||||||
Interest bearing deposits with banks and FFS | 2,387,000 | 595 | 0.10 | ||||||||||
Total earning assets | 9,328,883 | 80,142 | 3.48 | ||||||||||
Nonearning assets: | |||||||||||||
Cash and due from banks | 268,848 | ||||||||||||
Interest receivable and other assets | 683,868 | ||||||||||||
Allowance for credit losses | (90,551) | ||||||||||||
Total nonearning assets | 862,165 | ||||||||||||
Total assets | $ | 10,191,048 | |||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||
Interest bearing liabilities: | |||||||||||||
Transaction deposits | $ | 766,994 | $ | 149 | 0.08 | % | |||||||
Savings deposits | 3,504,020 | 1,106 | 0.13 | ||||||||||
Time deposits | 657,938 | 1,067 | 0.66 | ||||||||||
Short-term borrowings | 2,928 | 1 | 0.19 | ||||||||||
Junior subordinated debentures | 26,804 | 491 | 7.43 | ||||||||||
Total interest bearing liabilities | 4,958,684 | 2,814 | 0.23 | ||||||||||
Interest free funds: | |||||||||||||
Noninterest bearing deposits | 4,106,084 | ||||||||||||
Interest payable and other liabilities | 41,522 | ||||||||||||
Stockholders' equity | 1,084,758 | ||||||||||||
Total interest free funds | 5,232,364 | ||||||||||||
Total liabilities and stockholders' equity | $ | 10,191,048 | |||||||||||
Net interest income | $ | 77,328 | |||||||||||
Net interest spread | 3.25 | % | |||||||||||
Effect of interest free funds | 0.11 | % | |||||||||||
Net interest margin | 3.36 | % | |||||||||||
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SOURCE BancFirst
