BancFirst Corporation Reports Second Quarter Earnings

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July 20, 2017 11:00 AM EDT

OKLAHOMA CITY, July 20, 2017 /PRNewswire/ -- BancFirst Corporation (NASDAQ GS: BANF) reported net income of $23.2 million, or $1.42 diluted earnings per share, for the second quarter of 2017 compared to net income of $17.5 million, or $1.10 diluted earnings per share, for the second quarter of 2016.  A lower effective tax rate and the resolution of a problem loan during the second quarter of 2017 added 7 cents per share. Net income for the six months ended June 30, 2017 was $45.2 million, or $2.78 per share, compared to $34.1 million, or $2.15 per share, for the first half of 2016. Net income for the first half of 2017 included the effects of favorable resolutions of three problem loans which resulted in principal recovery of $894,000 and unaccrued interest income of $2.7 million.

The Company's net interest income for the second quarter of 2017 increased to $56.4 million compared to $50.9 million for the second quarter of 2016. The net interest margin for the quarter was 3.43% compared to 3.28% a year ago. The increase in margin was primarily due to the increase in the federal funds rate and the favorable resolution of an acquired loan, which added 2 basis points.  The provision for loan losses for the second quarter of 2017 decreased to $1.8 million compared to $2.8 million a year ago. The decrease in the provision was due in part to an unusually high provision for a few commercial loans in the prior year.  Net charge-offs were stable at 0.02% of average loans for the second quarter of both 2017 and 2016.  Noninterest income for the quarter totaled $28.0 million, compared to $26.1 million last year. Noninterest expense for the quarter totaled $49.0 million compared to $47.7 million last year. The increase in noninterest expense was due to salary increases in 2017. The Company's effective tax rate was 31.1% compared to 33.7% for the second quarter of 2016 adding approximately $875,000 to net income. The decrease in the effective tax rate was due to a change in accounting standards related to stock based compensation. 

At June 30, 2017, the Company's total assets were largely unchanged at $7.0 billion, $27.6 million above the December 31, 2016 total. Securities of $451.4 million were down slightly from December 31, 2016. Loans totaled $4.6 billion, an increase of $177.9 million over December 31, 2016.  Deposits were flat totaling $6.2 billion at both June 30, 2017 and December 31, 2016. The Company's total stockholders' equity was $748.5 million, an increase of $37.4 million over December 31, 2016.

Asset quality remained strong during the second quarter of 2017.  Nonperforming and restructured assets fell to 0.42% of total assets at June 30, 2017 compared to 0.56% at December 31, 2016. The decrease in nonperforming and restructured assets was largely due to the resolution of the aforementioned problem loans during the first half of 2017. The allowance to total loans was 1.07% compared to 1.10% at year-end 2016. The allowance to nonperforming and restructured loans was 193.1% compared to 137.3% at year-end 2016.

Executive Chairman David Rainbolt commented, "With our strong core community deposits we obviously benefit from Fed rate changes. Our task now is to grow earning assets in a modest economic environment."

On May 31, 2017, the Company announced that its Board of Directors approved a two-for-one stock split of the Company's outstanding shares of common stock. The stock will be payable in the form of a dividend on or about July 31, 2017 to shareholders of record of the outstanding common stock as of the close of business record date of July 17, 2017.  Stockholders will receive one additional share for each share held on that date. This represents the second stock split for BancFirst since going public.

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.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)

2017

2017

2016

2016

2016

2nd Qtr 

1st Qtr 

4th Qtr 

3rd Qtr 

2nd Qtr 

 Condensed Income Statements: 

 Net interest income 

$               56,439

$               54,768

$               51,553

$               51,431

$               50,868

 Provision for loan losses 

1,841

72

1,672

2,940

2,804

 Non-interest income:

Trust revenue

2,894

2,952

2,878

2,685

2,602

Service charges on deposits

16,448

15,778

16,005

16,033

15,485

Securities transactions

(330)

---

52

(146)

(65)

Income from sales of loans

816

632

705

863

695

Insurance commissions

3,728

4,563

3,797

4,372

3,255

Cash management

2,799

2,754

2,713

2,853

2,732

Other

1,628

1,406

1,281

1,267

1,353

Total noninterest income 

27,983

28,085

27,431

27,927

26,057

 Non-interest expense:

Salaries and employee benefits

31,547

30,654

29,706

30,591

30,008

Occupancy expense, net

2,992

2,974

3,198

3,217

3,071

Depreciation

2,392

2,420

2,461

2,556

2,567

Amortization of intangible assets

547

547

548

560

580

Data processing services

1,097

1,195

1,229

1,178

1,174

Net expense from other real estate owned

202

50

197

162

35

Marketing and business promotion

1,559

2,215

1,978

1,779

1,624

Deposit insurance

542

588

569

641

855

Other

8,075

8,945

8,303

8,520

7,806

Total noninterest expense 

48,953

49,588

48,189

49,204

47,720

 Income before income taxes 

33,628

33,193

29,123

27,214

26,401

 Income tax expense 

10,446

11,143

10,503

9,232

8,908

 Net income 

$               23,182

$               22,050

$               18,620

$               17,982

$               17,493

 Per Common Share Data: 

 Net income-basic 

$                   1.46

$                   1.39

$                   1.19

$                   1.15

$                   1.12

 Net income-diluted 

1.42

1.36

1.16

1.13

1.10

 Cash dividends declared

0.38

0.38

0.38

0.38

0.36

 Common shares outstanding 

15,909,219

15,891,276

15,810,935

15,695,083

15,560,271

 Average common shares outstanding -

   Basic

15,903,805

15,864,807

15,743,770

15,631,094

15,549,811

   Diluted

16,261,688

16,237,998

16,046,061

15,922,209

15,842,485

 Performance Ratios: 

 Return on average assets

1.31

%

1.27

%

1.07

%

1.06

%

1.04

%

 Return on average equity

12.52

12.37

10.44

10.35

10.42

 Net interest margin 

3.43

3.39

3.19

3.27

3.28

 Efficiency ratio 

57.99

59.85

61.01

62.00

62.03

 

BancFirst Corporation

Summary Financial Information

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

Six months ended

June 30,

2017

2016

 Condensed Income Statements: 

 Net interest income 

$             111,207

$             100,844

 Provision for loan losses 

1,913

6,907

 Non-interest income:

Trust revenue

5,846

5,067

Service charges on deposits

32,226

30,195

Securities transactions

(330)

35

Income from sales of loans

1,448

1,257

Insurance commissions

8,291

7,390

Cash management

5,553

5,050

Other

3,034

2,680

Total noninterest income 

56,068

51,674

 Non-interest expense:

Salaries and employee benefits

62,201

59,365

Occupancy expense, net

5,966

5,898

Depreciation

4,812

5,097

Amortization of intangible assets

1,094

1,161

Data processing services

2,292

2,389

Net expense (income) from other real estate owned

252

(1,106)

Marketing and business promotion

3,774

3,479

Deposit insurance

1,130

1,694

Other

17,020

16,034

Total noninterest expense 

98,541

94,011

 Income before income taxes 

66,821

51,600

 Income tax expense 

21,589

17,528

 Net income 

$               45,232

$               34,072

 Per Common Share Data: 

 Net income-basic 

$                   2.85

$                   2.19

 Net income-diluted 

2.78

2.15

 Cash dividends declared

0.76

0.72

 Common shares outstanding 

15,909,219

15,560,271

 Average common shares outstanding -

   Basic

15,884,414

15,542,114

   Diluted

16,249,995

15,830,677

 Performance Ratios: 

 Return on average assets

1.29

%

1.02

%

 Return on average stockholders' equity

12.44

10.23

 Net interest margin 

3.41

3.27

 Efficiency ratio 

58.91

61.64

 

BancFirst Corporation

Summary Financial Information

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

2017

2017

2016

2016

2016

2nd Qtr 

1st Qtr

4th Qtr 

3rd Qtr 

2nd Qtr 

 Balance Sheet Data:

 Total assets

$        7,046,589

$        7,189,637

$        7,018,952

$        6,783,537

$        6,683,376

 Interest-bearing deposits with banks

1,533,147

1,857,961

1,666,540

1,532,095

1,373,923

 Securities

451,402

463,250

469,833

473,738

419,238

 Total loans

4,587,454

4,398,529

4,409,550

4,317,512

4,337,063

 Allowance for loan losses

(49,005)

(47,921)

(48,693)

(48,061)

(46,566)

 Deposits

6,235,682

6,394,627

6,248,057

6,024,949

5,943,982

 Stockholders' equity

748,462

729,873

711,094

693,731

676,830

 Book value per common share

47.05

45.93

44.97

44.20

43.50

 Tangible book value per common share

42.88

41.72

40.71

39.87

39.09

 Balance Sheet Ratios:

 Average loans to deposits

71.47

%

70.13

%

70.98

%

71.77

%

71.74

%

 Average earning assets to total assets

93.44

93.45

93.30

93.16

93.05

 Average stockholders' equity to average assets

10.46

10.25

10.26

10.22

10.02

Asset Quality Data:

 Past due loans

$              2,217

$              2,024

$              1,962

$              1,906

$              2,695

 Nonaccrual loans

19,607

23,694

31,798

31,014

30,063

 Restructured loans

3,561

2,203

1,713

1,842

1,974

 Total nonperforming and restructured loans

25,385

27,921

35,473

34,762

34,732

 Other real estate owned and repossessed assets

4,211

4,404

3,866

4,339

4,469

 Total nonperforming and restructured assets

29,596

32,325

39,339

39,101

39,201

 Nonperforming and restructured loans to total loans

0.55

%

0.63

%

0.80

%

0.81

%

0.80

%

 Nonperforming and restructured assets to total assets

0.42

0.45

0.56

0.58

0.59

 Allowance to total loans

1.07

1.09

1.10

1.11

1.07

 Allowance to nonperforming and restructured loans

193.05

171.63

137.27

138.26

134.07

 Net charge-offs to average loans

0.02

0.02

0.02

0.03

0.02

 

BancFirst Corporation

Consolidated Average Balance Sheets

And Interest Margin Analysis

Taxable Equivalent Basis

(Dollars in thousands - Unaudited)

Three Months Ended

Six Months Ended

June 30, 2017

June 30, 2017

Interest

Average

Interest

Average

Average

Income/

Yield/

Average

Income/

Yield/

Balance

Expense

Rate

Balance

Expense

Rate

ASSETS

Earning assets:

  Loans

$           4,504,890

$           54,980

4.90

%

$        4,453,087

$         108,813

4.93

%

  Securities – taxable

426,396

1,906

1.79

430,772

3,667

1.72

  Securities – tax exempt

32,135

275

3.44

32,710

562

3.46

  Interest bearing deposits with banks

1,676,871

4,426

1.06

1,700,677

7,866

0.93

     Total earning assets

6,640,292

61,587

3.72

6,617,246

120,908

3.68

Nonearning assets:

  Cash and due from banks

175,372

174,356

  Interest receivable and other assets

338,798

337,963

  Allowance for loan losses

(48,285)

(48,368)

     Total nonearning assets

465,885

463,951

     Total assets

$            7,106,177

$        7,081,197

LIABILITIES AND

  STOCKHOLDERS' EQUITY

Interest bearing liabilities:

  Transaction deposits                      

$           793,265

$               213

0.11

%

$           794,497

$               424

0.11

%

  Savings deposits

2,272,227

2,778

0.49

2,268,095

5,075

0.45

  Time deposits

681,797

1,309

0.77

683,675

2,526

0.75

  Short-term borrowings

1,582

4

0.91

1,725

7

0.87

  Junior subordinated debentures

31,959

530

6.65

31,959

1,057

6.67

     Total interest bearing liabilities

3,780,830

4,834

0.51

3,779,951

9,089

0.48

Interest free funds:

  Noninterest bearing deposits

2,556,003

2,543,015

  Interest payable and other liabilities

26,383

25,137

  Stockholders' equity

742,961

733,094

     Total interest free  funds

3,325,347

3,301,246

     Total liabilities

       and stockholders' equity

$            7,106,177

$        7,081,197

Net interest income

$           56,753

$         111,819

Net interest spread

3.21

%

3.20

%

Effect of interest free funds

0.22

%

0.21

%

Net interest margin

3.43

%

3.41

%

 

View original content:http://www.prnewswire.com/news-releases/bancfirst-corporation-reports-second-quarter-earnings-300491065.html

SOURCE BancFirst


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