BancFirst Corporation Reports Fourth Quarter Earnings
OKLAHOMA CITY, Jan. 19, 2017 /PRNewswire/ -- BancFirst Corporation (NASDAQ GS:BANF) reported net income of $18.6 million, or $1.16 diluted earnings per share, for the fourth quarter of 2016 compared to net income of $15.7 million, or $0.99 diluted earnings per share, for the fourth quarter of 2015. Net income for the year ended December 31, 2016 was $70.7 million, or $4.44 diluted earnings per share, compared to $66.2 million, or $4.17 diluted earnings per share, for 2015.
The Company's net interest income for the fourth quarter of 2016 increased to $51.6 million compared to $50.1 million for the fourth quarter of 2015. The net interest margin for the quarter was 3.19% compared to 3.23% a year ago. Internal loan growth and acquired loans from our October 2015 acquisition contributed to the higher net interest income in 2016. The provision for loan losses for the fourth quarter of 2016 decreased to $1.7 million compared to $3.6 million a year ago. The larger provision in the fourth quarter of 2015 was due to downgrades of commercial loans. Net charge-offs for the quarter were 0.02% of average loans, compared to 0.07% for the fourth quarter of 2015. Noninterest income for the quarter totaled $27.4 million, compared to $26.5 million last year. Noninterest expense for the quarter totaled $48.2 million compared to $49.0 million last year.
For the year ended 2016, the Company's net interest income was $203.8 million compared to $188.8 million for 2015. The net interest margin for the year increased to 3.25% compared to 3.12% for the previous year. Internal loan growth, acquired loans from our October 2015 acquisition and the increase in the Fed Fund rate of 25 basis points during the 4th quarter of 2015 contributed to the higher net interest income and margin in 2016. The provision for loan losses for 2016 was $11.5 million compared to $7.7 million a year ago. The increase in the provision was largely due to loan downgrades in the oil and gas service industry during the year. However, those loans have not yet resulted in write downs as the Company reported lower net charge-offs to average loans of 0.10% for 2016 compared to 0.17% for 2015. Noninterest income for 2016 totaled $107.0 million compared to $105.8 million for 2015. Noninterest expense was $191.4 million compared to $185.7 million for 2015. The Company's effective tax rate was 34.52% compared to 34.62% for 2015.
At December 31, 2016, the Company's total assets were $7.0 billion, an increase of 4.9% from December 31, 2015. Loans totaled $4.4 billion, up $163.8 million from December 31, 2015. Deposits totaled $6.2 billion up $274.7 million from December 31, 2015 totals. The Company's total stockholders' equity was $711.1 million, an increase of $55.6 million, or 8.5%, over December 31, 2015.
Asset quality remained solid during the fourth quarter of 2016. Nonperforming and restructured assets were 0.56% of total assets at December 31, 2016 compared to 0.83% at December 31, 2015. The decrease in nonperforming and restructured assets was largely due to one relationship that was removed from a troubled debt restructuring status due to sustained improvement in financial condition, performance, and the commercially reasonable nature of its structure. Sales of other real estate owned also contributed to the decrease in nonperforming assets. The allowance to total loans was 1.10% compared to 0.98% at year-end 2015. The allowance to nonperforming and restructured loans was 137.3% compared to 88.5% at year-end 2015.
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 100 banking locations serving 53 communities across Oklahoma. More information can be found at www.bancfirst.com.
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) | ||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | ||||||
4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | 4th Qtr | ||||||
Condensed Income Statements: | ||||||||||
Net interest income | $ 51,553 | $ 51,431 | $ 50,868 | $ 49,976 | $ 50,075 | |||||
Provision for loan losses | 1,672 | 2,940 | 2,804 | 4,103 | 3,646 | |||||
Non-interest income: | ||||||||||
Trust revenue | 2,878 | 2,685 | 2,602 | 2,465 | 2,254 | |||||
Service charges on deposits | 16,005 | 16,033 | 15,485 | 14,710 | 15,077 | |||||
Securities transactions | 52 | (146) | (65) | 100 | 2,148 | |||||
Income from sales of loans | 705 | 863 | 695 | 562 | 434 | |||||
Insurance commissions | 3,797 | 4,372 | 3,255 | 4,135 | 3,176 | |||||
Cash management | 2,713 | 2,853 | 2,732 | 2,318 | 1,899 | |||||
Other | 1,281 | 1,267 | 1,353 | 1,327 | 1,485 | |||||
Total noninterest income | 27,431 | 27,927 | 26,057 | 25,617 | 26,473 | |||||
Non-interest expense: | ||||||||||
Salaries and employee benefits | 29,706 | 30,591 | 30,008 | 29,357 | 28,938 | |||||
Occupancy expense, net | 3,198 | 3,217 | 3,071 | 2,827 | 2,926 | |||||
Depreciation | 2,461 | 2,556 | 2,567 | 2,530 | 2,565 | |||||
Amortization of intangible assets | 548 | 560 | 580 | 581 | 602 | |||||
Data processing services | 1,229 | 1,178 | 1,174 | 1,215 | 1,151 | |||||
Net expense (income) from other real estate owned | 197 | 162 | 35 | (1,141) | 143 | |||||
Marketing and business promotion | 1,978 | 1,779 | 1,624 | 1,855 | 2,266 | |||||
Deposit insurance | 569 | 641 | 855 | 839 | 876 | |||||
Other | 8,303 | 8,520 | 7,806 | 8,228 | 9,544 | |||||
Total noninterest expense | 48,189 | 49,204 | 47,720 | 46,291 | 49,011 | |||||
Income before income taxes | 29,123 | 27,214 | 26,401 | 25,199 | 23,891 | |||||
Income tax expense | 10,503 | 9,232 | 8,908 | 8,620 | 8,163 | |||||
Net income | $ 18,620 | $ 17,982 | $ 17,493 | $ 16,579 | $ 15,728 | |||||
Per Common Share Data: | ||||||||||
Net income-basic | $ 1.19 | $ 1.15 | $ 1.12 | $ 1.07 | $ 1.00 | |||||
Net income-diluted | 1.16 | 1.13 | 1.10 | 1.05 | 0.99 | |||||
Cash dividends declared | 0.38 | 0.38 | 0.36 | 0.36 | 0.36 | |||||
Common shares outstanding | 15,810,935 | 15,695,083 | 15,560,271 | 15,527,804 | 15,597,446 | |||||
Average common shares outstanding - | ||||||||||
Basic | 15,743,770 | 15,631,094 | 15,549,811 | 15,534,416 | 15,609,599 | |||||
Diluted | 16,046,061 | 15,922,209 | 15,842,485 | 15,816,371 | 15,923,924 | |||||
Performance Ratios: | ||||||||||
Return on average assets | 1.07 | % | 1.06 | % | 1.04 | % | 1.00 | % | 0.94 | % |
Return on average equity | 10.44 | 10.35 | 10.42 | 10.05 | 9.51 | |||||
Net interest margin | 3.19 | 3.27 | 3.28 | 3.25 | 3.23 | |||||
Efficiency ratio | 61.01 | 62.00 | 62.03 | 61.24 | 64.03 | |||||
BancFirst Corporation Summary Financial Information (Dollars in thousands, except per share and share data – Unaudited, except where noted*) | ||||||||||
Twelve months ended December 31, | ||||||||||
2016 | 2015* | |||||||||
Condensed Income Statements: | ||||||||||
Net interest income | $ 203,828 | $ 188,792 | ||||||||
Provision for loan losses | 11,519 | 7,675 | ||||||||
Non-interest income: | ||||||||||
Trust revenue | 10,630 | 9,091 | ||||||||
Service charges on deposits | 62,233 | 57,651 | ||||||||
Securities transactions | (59) | 9,269 | ||||||||
Income from sales of loans | 2,825 | 1,968 | ||||||||
Insurance commissions | 15,559 | 14,791 | ||||||||
Cash management | 10,616 | 7,510 | ||||||||
Other | 5,228 | 5,528 | ||||||||
Total noninterest income | 107,032 | 105,808 | ||||||||
Non-interest expense: | ||||||||||
Salaries and employee benefits | 119,662 | 113,083 | ||||||||
Occupancy expense, net | 12,313 | 11,512 | ||||||||
Depreciation | 10,114 | 9,966 | ||||||||
Amortization of intangible assets | 2,269 | 1,935 | ||||||||
Data processing services | 4,796 | 4,579 | ||||||||
Net (income) expense from other real estate owned | (747) | 324 | ||||||||
Marketing and business promotion | 7,236 | 6,986 | ||||||||
Deposit insurance | 2,904 | 3,358 | ||||||||
Other | 32,857 | 33,972 | ||||||||
Total noninterest expense | 191,404 | 185,715 | ||||||||
Income before income taxes | 107,937 | 101,210 | ||||||||
Income tax expense | 37,263 | 35,040 | ||||||||
Net income | $ 70,674 | $ 66,170 | ||||||||
Per Common Share Data: | ||||||||||
Net income-basic | $ 4.53 | $ 4.25 | ||||||||
Net income-diluted | 4.44 | 4.17 | ||||||||
Cash dividends declared | 1.48 | 1.40 | ||||||||
Common shares outstanding | 15,810,935 | 15,597,446 | ||||||||
Average common shares outstanding - | ||||||||||
Basic | 15,615,170 | 15,559,059 | ||||||||
Diluted | 15,911,262 | 15,886,245 | ||||||||
Performance Ratios: | ||||||||||
Return on average assets | 1.04 | % | 1.01 | % | ||||||
Return on average stockholders' equity | 10.32 | 10.38 | ||||||||
Net interest margin | 3.25 | 3.12 | ||||||||
Efficiency ratio | 61.57 | 63.04 | ||||||||
BancFirst Corporation Summary Financial Information (Dollars in thousands, except per share and share data - Unaudited) | ||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | ||||||
4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | 4th Qtr | ||||||
Balance Sheet Data: | ||||||||||
Total assets | $ 7,018,952 | $ 6,783,537 | $ 6,683,376 | $ 6,740,938 | $ 6,692,829 | |||||
Interest-bearing deposits with banks | 1,666,540 | 1,532,095 | 1,373,923 | 1,498,356 | 1,394,813 | |||||
Securities | 469,833 | 473,738 | 419,238 | 497,986 | 552,949 | |||||
Total loans | 4,409,550 | 4,317,512 | 4,337,063 | 4,282,738 | 4,245,773 | |||||
Allowance for loan losses | (48,693) | (48,061) | (46,566) | (44,571) | (41,666) | |||||
Deposits | 6,248,057 | 6,024,949 | 5,943,982 | 6,010,872 | 5,973,358 | |||||
Stockholders' equity | 711,094 | 693,731 | 676,830 | 662,661 | 655,510 | |||||
Book value per common share | 44.97 | 44.20 | 43.50 | 42.68 | 42.03 | |||||
Tangible book value per common share | 40.71 | 39.87 | 39.09 | 38.22 | 37.56 | |||||
Balance Sheet Ratios: | ||||||||||
Average loans to deposits | 70.98 | % | 71.77 | % | 71.74 | % | 71.28 | % | 69.62 | % |
Average earning assets to total assets | 93.30 | 93.16 | 93.05 | 92.88 | 92.84 | |||||
Average stockholders' equity to average assets | 10.26 | 10.22 | 10.02 | 9.92 | 9.84 | |||||
Asset Quality Data: | ||||||||||
Past due loans | $ 1,962 | $ 1,906 | $ 2,695 | $ 1,099 | $ 1,841 | |||||
Nonaccrual loans | 31,798 | 31,014 | 30,063 | 31,040 | 30,096 | |||||
Restructured loans | 1,713 | 1,842 | 1,974 | 533 | 15,143 | |||||
Total nonperforming and restructured loans | 35,473 | 34,762 | 34,732 | 32,672 | 47,080 | |||||
Other real estate owned and repossessed assets | 3,866 | 4,339 | 4,469 | 4,245 | 8,214 | |||||
Total nonperforming and restructured assets | 39,339 | 39,101 | 39,201 | 36,917 | 55,294 | |||||
Nonperforming and restructured loans to total loans | 0.80 | % | 0.81 | % | 0.80 | % | 0.76 | % | 1.11 | % |
Nonperforming and restructured assets to total assets | 0.56 | 0.58 | 0.59 | 0.55 | 0.83 | |||||
Allowance to total loans | 1.10 | 1.11 | 1.07 | 1.04 | 0.98 | |||||
Allowance to nonperforming and restructured loans | 137.27 | 138.26 | 134.07 | 136.42 | 88.50 | |||||
Net charge-offs to average loans | 0.02 | 0.03 | 0.02 | 0.03 | 0.07 | |||||
BancFirst Corporation Consolidated Average Balance Sheets And Interest Margin Analysis Taxable Equivalent Basis (Dollars in thousands - Unaudited) | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, 2016 | December 31, 2016 | ||||||||||||||
Interest | Average | Interest | Average | ||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||
Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||
ASSETS | |||||||||||||||
Earning assets: | |||||||||||||||
Loans | $ 4,352,899 | $ 51,749 | 4.72 | % | $ 4,298,245 | $ 205,111 | 4.76 | % | |||||||
Securities – taxable | 420,326 | 1,315 | 1.24 | 443,907 | 5,229 | 1.17 | |||||||||
Securities – tax exempt | 36,443 | 336 | 3.66 | 39,491 | 1,484 | 3.75 | |||||||||
Interest bearing deposits with banks | 1,627,652 | 2,286 | 0.56 | 1,510,843 | 7,908 | 0.52 | |||||||||
Total earning assets | 6,437,320 | 55,686 | 3.43 | 6,292,486 | 219,732 | 3.48 | |||||||||
Nonearning assets: | |||||||||||||||
Cash and due from banks | 173,063 | 175,066 | |||||||||||||
Interest receivable and other assets | 337,396 | 336,491 | |||||||||||||
Allowance for loan losses | (48,111) | (45,168) | |||||||||||||
Total nonearning assets | 462,348 | 466,389 | |||||||||||||
Total assets | $ 6,899,668 | $ 6,758,875 | |||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||
Interest bearing liabilities: | |||||||||||||||
Transaction deposits | $ 783,883 | $ 199 | 0.10 | % | $ 785,090 | $ 808 | 0.10 | % | |||||||
Savings deposits | 2,194,546 | 1,906 | 0.34 | 2,110,602 | 7,018 | 0.33 | |||||||||
Time deposits | 688,644 | 1,212 | 0.70 | 705,055 | 4,812 | 0.68 | |||||||||
Short-term borrowings | 2,222 | 2 | 0.42 | 1,799 | 7 | 0.38 | |||||||||
Junior subordinated debentures | 31,959 | 527 | 6.55 | 31,959 | 2,096 | 6.54 | |||||||||
Total interest bearing liabilities | 3,701,254 | 3,846 | 0.41 | 3,634,505 | 14,741 | 0.40 | |||||||||
Interest free funds: | |||||||||||||||
Noninterest bearing deposits | 2,465,697 | 2,415,972 | |||||||||||||
Interest payable and other liabilities | 25,150 | 25,212 | |||||||||||||
Stockholders' equity | 707,567 | 683,186 | |||||||||||||
Total interest free funds | 3,198,414 | 3,124,370 | |||||||||||||
Total liabilities and stockholders' equity | $ 6,899,668 | $ 6,758,875 | |||||||||||||
Net interest income | $ 51,840 | $ 204,991 | |||||||||||||
Net interest spread | 3.02 | % | 3.08 | % | |||||||||||
Effect of interest free funds | 0.17 | % | 0.17 | % | |||||||||||
Net interest margin | 3.19 | % | 3.25 | % | |||||||||||
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SOURCE BancFirst
