BancFirst Corporation Reports Fourth Quarter Earnings

OKLAHOMA CITY, Jan. 17, 2020 /PRNewswire/ -- BancFirst Corporation (NASDAQ GS:BANF) reported net income of $35.5 million, or $1.07 diluted earnings per share, for the fourth quarter of 2019 compared to net income of $32.7 million, or $0.98 diluted earnings per share, for the fourth quarter of 2018.  Net income for the twelve months ended December 31, 2019 was $134.9 million, or $4.05 per share, compared to $125.8 million, or $3.76 per share, for the twelve months ended December 31, 2018. On August 15, 2019 the Company completed the acquisition of Pegasus Bank in Dallas, Texas. As a result, year to date results include one-time acquisition related expenses of approximately $3.1 million, which reduced diluted earnings per share by approximately 7 cents for the year. On January 11, 2018 the Company completed the acquisitions of two Oklahoma banking corporations. Consequently, 2018 included one-time acquisition related expenses of approximately $2.6 million, which reduced diluted earnings per share by approximately 6 cents

The Company's net interest income for the fourth quarter of 2019 increased to $73.9 million compared to $66.9 million for the fourth quarter of 2018. The net interest margin for the quarter was 3.78% compared to 3.77% a year ago. The provision for loan losses for the fourth quarter of 2019 was $1.4 million compared to $1.5 million a year ago. Net charge-offs for the full year of 2019 were 0.10% of average loans compared to 0.08% of average loans in 2018. Net charge-offs for the fourth quarter of 2019 were 0.06% of average loans compared to 0.04% of average loans in 2018.  Noninterest income for the quarter totaled $35.5 million, compared to $31.9 million last year. The increase in noninterest income was primarily due to an increase in trust revenue, growth in debit card usage fees and sweep fees. Noninterest expense for the quarter totaled $66.3 million compared to $56.2 million last year. The increase in noninterest expense was primarily due to salary increases in 2019, the Pegasus Bank acquisition, and $2.3 million of amortization of new market tax credits. The Company's effective tax rate was 15.0% compared to 20.3% for the fourth quarter of 2018. The decrease in the effective tax rate compared to the fourth quarter of 2018 was due to the aforementioned purchase of tax credits during the quarter.

At December 31, 2019, the Company's total assets were $8.6 billion, an increase of $991.5 million from December 31, 2018. Securities of $491.6 million were down $280.5 million from December 31, 2018. Loans totaled $5.7 billion, an increase of $689.0 million from December 31, 2018. Deposits totaled $7.5 billion, an increase of $878.1 million from the December 31, 2018 total. The Company's total stockholders' equity was $1.0 billion, an increase of $102.2 million over December 31, 2018.

On August 15, 2019, BancFirst Corporation acquired Pegasus Bank ("Pegasus"), for an aggregate cash purchase price of $123.5 million. Pegasus is a Texas state-chartered bank with three banking locations in Dallas, Texas. Upon acquisition, Pegasus had approximately $651.1 million in total assets, $389.9 million in loans, and $603.9 million in deposits. The Bank will continue to operate as "Pegasus Bank" under a separate Texas state-charter and remain an independent subsidiary of BancFirst Corporation.

Asset quality remained strong during the fourth quarter of 2019.  Nonperforming and restructured assets represented 0.63% of total assets at December 31, 2019, up from 0.59% at year-end 2018. The allowance to total loans was 0.96% down slightly from 1.03% at year-end 2018. The allowance to nonperforming and restructured loans was 113.40% compared to 136.29% at year-end 2018.

BancFirst Corporation CEO David Harlow commented, "The Company reported strong results for the fourth quarter and record earnings per share and net income for the year despite the headwind of lower interest rates during the second half of 2019.  While net interest margin will continue to be under pressure in 2020, we were able to protect our margin in 2019 through loan growth, liability repricing, and the strength and size of our non-interest bearing deposit book.  Non-interest income continued strong year-over-year growth while asset quality remained solid with 10bps of charge offs for the year.  We are pleased with the integration of Pegasus Bank into BancFirst Corporation during the latter part of 2019 and are excited about the growth platform the Dallas market will provide the Company going forward.  We will continue to build upon our core Oklahoma franchise as we have in the past through both organic growth and strategic acquisitions."

BancFirst Corporation (the Company) is an Oklahoma based financial services holding company.  The Company operates two subsidiary banks, BancFirst, is Oklahoma's largest state-chartered bank with 108 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)




2019


2019


2019


2019


2018



4th Qtr 


3rd Qtr 


2nd Qtr 


1st Qtr 


4th Qtr 


Condensed Income Statements: 











Net interest income 

$              73,939


$               72,287


$              68,792


$              66,903


$              66,888


Provision for loan losses 

1,412


2,758


2,433


1,684


1,516


Non-interest income:











Trust revenue

3,682


3,490


3,250


3,177


3,023


Service charges on deposits

19,938


19,866


19,114


17,663


18,554


Securities transactions

(9)


--


821


--


10


Income from sales of loans

913


964


868


698


649


Insurance commissions

5,076


5,535


4,420


5,265


4,593


Cash management

4,258


4,430


4,402


3,776


3,338


Other

1,666


1,342


1,202


1,422


1,684


Total noninterest income 

35,524


35,627


34,077


32,001


31,851













Non-interest expense:











Salaries and employee benefits

40,375


40,354


36,124


36,171


35,530


Occupancy expense, net

3,738


3,386


2,953


2,627


3,307


Depreciation

3,355


3,268


3,015


2,985


2,965


Amortization of intangible assets

1,360


842


758


759


777


Data processing services

1,634


1,467


1,262


1,480


1,140


Net expense from other real estate owned

(424)


26


97


(484)


130


Marketing and business promotion

2,327


2,047


1,919


2,261


2,030


Deposit insurance

147


(81)


544


533


571


Other

13,784


10,882


9,936


9,874


9,716


Total noninterest expense 

66,296


62,191


56,608


56,206


56,166


Income before income taxes 

41,755


42,965


43,828


41,014


41,057


Income tax expense 

6,248


9,597


9,661


9,177


8,332


Net income 

$              35,507


$              33,368


$              34,167


$              31,837


$              32,725


Per Common Share Data: 











Net income-basic 

$                  1.09


$                  1.02


$                  1.04


$                  0.98


$                  1.00


Net income-diluted 

1.07


1.00


1.02


0.96


0.98


Cash dividends declared

0.32


0.32


0.30


0.30


0.30


Common shares outstanding 

32,694,268


32,644,018


32,639,588


32,617,788


32,603,926


Average common shares outstanding -











   Basic

32,673,438


32,641,902


32,629,146


32,612,399


32,721,626


   Diluted

33,366,848


33,327,213


33,317,193


33,292,852


33,423,458


Performance Ratios: 











Return on average assets

1.66

%

1.65

%

1.78

%

1.69

%

1.70

%

Return on average equity

13.76


13.80


14.54


14.08


14.48


Net interest margin 

3.78


3.89


3.89


3.85


3.77


Efficiency ratio 

60.56


57.63


55.03


56.83


56.88













 

BancFirst Corporation

Summary Financial Information

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



Twelve months ended

December 31,



2019


2018


 Condensed Income Statements: 





 Net interest income 

$             281,921


$             260,476


 Provision for loan losses 

8,287


3,802


 Non-interest income:





Trust revenue

13,599


12,829


Service charges on deposits

76,581


70,847


Securities transactions

812


47


Income from sales of loans

3,443


2,902


Insurance commissions

20,296


18,926


Cash management

16,866


13,123


Other

5,632


6,525


Total noninterest income 

137,229


125,199







 Non-interest expense:





Salaries and employee benefits

153,024


139,547


Occupancy expense, net

12,704


13,491


Depreciation

12,623


10,537


Amortization of intangible assets

3,719


3,009


Data processing services

5,843


4,956


Net expense from other real estate owned

(785)


239


Marketing and business promotion

8,554


8,028


Deposit insurance

1,143


2,427


Other

44,476


39,887


Total noninterest expense 

241,301


222,121


 Income before income taxes 

169,562


159,752


 Income tax expense 

34,683


33,938


 Net income 

$             134,879


$             125,814


 Per Common Share Data: 





 Net income-basic 

$                   4.13


$                   3.85


 Net income-diluted 

4.05


3.76


 Cash dividends declared

1.24


1.02


 Common shares outstanding 

32,694,268


32,603,926


 Average common shares outstanding -





   Basic

32,639,396


32,689,228


   Diluted

33,329,844


33,430,714


 Performance Ratios: 





 Return on average assets

1.69

%

1.66

%

 Return on average stockholders' equity

14.04


14.59


 Net interest margin 

3.85


3.70


 Efficiency ratio 

57.57


57.59


 

BancFirst Corporation

Summary Financial Information

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



2019


2019


2019


2019


2018



4th Qtr


3rd Qtr


2nd Qtr


1st Qtr 


4th Qtr


Balance Sheet Data:






















Total assets

$  8,565,758


$  8,388,816


$  7,642,021


$  7,709,000


$  7,574,258


Interest-bearing deposits with banks

1,646,238


1,476,340


1,518,998


1,291,447


1,195,824


Debt securities

491,626


555,575


425,154


724,872


772,132


Total loans

5,673,144


5,622,897


5,105,302


5,050,221


4,984,150


Allowance for loan losses

(54,238)


(55,928)


(55,108)


(52,915)


(51,389)


Deposits

7,483,635


7,330,677


6,613,613


6,706,386


6,605,495


Stockholders' equity

1,004,990


979,752


956,380


927,927


902,789


Book value per common share

30.74


30.01


29.30


28.45


27.69


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

25.50


24.77


26.40


25.52


24.74


Balance Sheet Ratios:











Average loans to deposits

75.83

%

77.68

%

76.07

%

75.34

%

74.24

%

Average earning assets to total assets

91.50


92.23


92.43


92.42


92.48


Average stockholders' equity to average assets

12.04


11.96


12.25


12.01


11.76


Asset Quality Data:











Past due loans

$       11,834


$       11,214


$         2,663


$         2,170


$         1,916


Nonaccrual loans

17,984


20,316


17,998


21,594


22,603


Restructured loans

18,010


17,504


16,486


14,552


13,188


Total nonperforming and restructured loans

47,828


49,034


37,147


38,316


37,707


Other real estate owned and repossessed assets

6,073


7,056


7,004


6,433


6,873


Total nonperforming and restructured assets

53,901


56,090


44,151


44,749


44,580


Nonperforming and restructured loans to total loans

0.84

%

0.87

%

0.73

%

0.76

%

0.76

%

Nonperforming and restructured assets to total assets

0.63


0.67


0.58


0.58


0.59


Allowance to total loans

0.96


0.99


1.08


1.05


1.03


Allowance to nonperforming and restructured loans

113.40


114.06


148.35


138.10


136.29


Net charge-offs to average loans

0.06


0.04


0.01


0.00


0.04













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












Stockholders' equity

$  1,004,990


$     979,752


$     956,380


$     927,927


$     902,789


Less goodwill

148,604


147,013


79,749


79,749


79,749


Less intangible assets, net

22,608


24,025


14,936


15,701


16,470


Tangible stockholders' equity (non-GAAP)

$     833,778


$     808,714


$     861,695


$     832,477


$     806,570


Common shares outstanding

32,694,268


32,644,018


32,639,588


32,617,788


32,603,926


 Tangible book value per common share (non-GAAP)

$         25.50


$         24.77


$         26.40


$         25.52


$         24.74













(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


Twelve Months Ended



December 31, 2019


December 31, 2019





Interest


Average




Interest


Average



Average


Income/


Yield/


Average


Income/


Yield/



Balance


Expense


Rate


Balance


Expense


Rate


ASSETS













Earning assets:













  Loans

$           5,614,570


$           76,691


5.42

%

$        5,273,632


$         292,152


5.54

%

  Securities – taxable

513,551


2,757


2.13


588,207


13,308


2.26


  Securities – tax exempt

21,798


141


2.57


20,219


580


2.87


  Interest bearing deposits with banks

1,628,088


6,782


1.65


1,455,799


31,372


2.15


     Total earning assets

7,778,007


86,371


4.41


7,337,857


337,412


4.60















Nonearning assets:













  Cash and due from banks

184,829






180,339






  Interest receivable and other assets

592,100






500,487






  Allowance for loan losses

(54,454)






(53,975)






     Total nonearning assets

722,475






626,851






     Total assets

$            8,500,482






$        7,964,708



















LIABILITIES AND STOCKHOLDERS' EQUITY

Interest bearing liabilities:













  Transaction deposits                      

$           774,824


$               606


0.31

%

$           751,140


$             2,573


0.34

%

  Savings deposits

3,024,500


8,318


1.09


2,782,086


39,170


1.41


  Time deposits

698,295


2,831


1.61


690,636


10,995


1.59


  Short-term borrowings

891


3


1.51


1,458


32


2.19


  Junior subordinated debentures

26,804


492


7.29


26,804


1,966


7.34


     Total interest bearing liabilities

4,525,314


12,250


1.07


4,252,124


54,736


1.29















Interest free funds:













  Noninterest bearing deposits

2,906,310






2,709,510






  Interest payable and other liabilities

45,426






42,219






  Stockholders' equity

1,023,432






960,855






     Total interest free  funds

3,975,168






3,712,584






     Total liabilities

       and stockholders' equity

$            8,500,482






$        7,964,708






Net interest income



$           74,121






$         282,676




Net interest spread





3.34

%





3.31

%

Effect of interest free funds





0.44

%





0.54

%

Net interest margin





3.78

%





3.85

%















 

Cision View original content:http://www.prnewswire.com/news-releases/bancfirst-corporation-reports-fourth-quarter-earnings-300988983.html

SOURCE BancFirst

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