BancFirst Corporation Reports Third Quarter Earnings

FREE Breaking News Alerts from StreetInsider.com!

E-mail Address

StreetInsider.com Top Tickers, 10/27/2026

1. ORCL
2. ANT
3. SPY
4. META
5. FFAI
6. FFR
7. CART
8. LLY
9. TSLA
10. FICO

October 19, 2017 4:20 PM EDT

OKLAHOMA CITY, Oct. 19, 2017 /PRNewswire/ -- BancFirst Corporation (NASDAQ GS: BANF) reported net income of $21.7 million, or $0.67 diluted earnings per share, for the third quarter of 2017 compared to net income of $18.0 million, or $0.57 diluted earnings per share, for the third quarter of 2016. Net income for the nine months ended September 30, 2017 was $66.9 million, or $2.06 per share, compared to $52.1 million, or $1.64 per share, for the first nine months of 2016. Net income for the first nine months 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. Net income for the first nine months of 2016 included a gain on the sale of other real estate owned totaling $1.2 million.

The Company's net interest income for the third quarter of 2017 increased to $57.2 million compared to $51.4 million for the third quarter of 2016. The net interest margin for the quarter was 3.46% compared to 3.27% a year ago. The increase in margin was primarily due to the increase in the federal funds rate. The provision for loan losses for the third quarter of 2017 increased to $3.3 million compared to $2.9 million a year ago. The provision for loan losses for the third quarter of 2017 was primarily driven by downgrades of commercial loans, which resulted in approximately $2.5 million in provision, and by loan growth, which resulted in approximately $750,000 in provision. Net charge-offs were stable at 0.02% of average loans for the third quarter of 2017 compared to 0.03% for the third quarter of 2016. Noninterest income for the quarter totaled $29.2 million, compared to $27.9 million last year. Noninterest expense for the quarter totaled $50.6 million compared to $49.2 million last year. The increase in noninterest expense was primarily due to salary increases in 2017. The Company's effective tax rate was 33.3% compared to 33.9% for the third quarter of 2016.

At September 30, 2017, the Company's total assets were $7.1 billion, $113.2 million above the December 31, 2016 total. Loans totaled $4.7 billion, an increase of $71.1 million over June 30, 2017, and an increase of $249.0 million over December 31, 2016. Deposits were $6.3 billion at September 30, 2017, up $66.4 million from last quarter, and $54.0 million above the December 31, 2016 total. The Company's total stockholders' equity was $764.4 million, an increase of $53.3 million over December 31, 2016.

Asset quality remained strong during the third quarter of 2017. Nonperforming and restructured assets were 0.53% of total assets at September 30, 2017 compared to 0.42% at June 30, 2017, and 0.56% at December 31, 2016. The increase in nonperforming and restructured assets from June 30, 2017 was due primarily to the downgrade of two commercial loans. The decrease in nonperforming and restructured assets from December 31, 2016 was largely due to the resolution of problem loans during the first two quarters of 2017. The allowance for loan losses to total loans was 1.10% at September 30, 2017, 1.07% at June 30, 2017, and 1.10% at December 31, 2016. The allowance to nonperforming and restructured loans was 153.5% compared to 193.1% at June 30, 2017, and 137.3% at year-end 2016.

On July 31, 2017, the Company completed a two-for-one stock split of the Company's outstanding shares of common stock. The stock was issued in the form of a dividend on July 31, 2017 to shareholders of record of the outstanding common stock as of the close of business on the record date of July 17, 2017. Stockholders received one additional share for each share held on that date. This represents the second stock split for the Company since going public in 1993.

On September 7, 2017, the Company announced it had entered into agreements to acquire two Oklahoma banking corporations with combined total assets of $370 million, in exchange for a combination of cash and stock. The transactions are expected to be completed in January 2018 upon regulatory approval. 

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

2017

2016

2016

3rd Qtr 

2nd Qtr 

1st Qtr 

4th Qtr 

3rd Qtr 

Condensed Income Statements: 

Net interest income 

$               57,233

$               56,439

$               54,768

$               51,553

$               51,431

Provision for loan losses 

3,276

1,841

72

1,672

2,940

Non-interest income:

Trust revenue

3,083

2,894

2,952

2,878

2,685

Service charges on deposits

16,633

16,448

15,778

16,005

16,033

Securities transactions

(22)

(330)

---

52

(146)

Income from sales of loans

732

816

632

705

863

Insurance commissions

4,603

3,728

4,563

3,797

4,372

Cash management

2,804

2,799

2,754

2,713

2,853

Other

1,336

1,628

1,406

1,281

1,267

Total noninterest income 

29,169

27,983

28,085

27,431

27,927

 Non-interest expense:

Salaries and employee benefits

31,471

31,547

30,654

29,706

30,591

Occupancy expense, net

3,298

2,992

2,974

3,198

3,217

Depreciation

2,493

2,392

2,420

2,461

2,556

Amortization of intangible assets

547

547

547

548

560

Data processing services

1,110

1,097

1,195

1,229

1,178

Net expense from other real estate owned

68

202

50

197

162

Marketing and business promotion

1,790

1,559

2,215

1,978

1,779

Deposit insurance

553

542

588

569

641

Other

9,270

8,075

8,945

8,303

8,520

Total noninterest expense 

50,600

48,953

49,588

48,189

49,204

 Income before income taxes 

32,526

33,628

33,193

29,123

27,214

 Income tax expense 

10,816

10,446

11,143

10,503

9,232

 Net income 

$               21,710

$               23,182

$               22,050

$               18,620

$               17,982

 Per Common Share Data: 

 Net income-basic 

$                   0.68

$                   0.73

$                   0.70

$                   0.60

$                   0.58

 Net income-diluted 

0.67

0.71

0.68

0.58

0.57

 Cash dividends declared

0.21

0.19

0.19

0.19

0.19

 Common shares outstanding 

31,863,063

31,818,438

31,782,552

31,621,870

31,390,166

 Average common shares outstanding -

   Basic

31,838,392

31,807,610

31,729,614

31,487,540

31,262,188

   Diluted

32,592,277

32,523,376

32,475,996

32,092,122

31,844,418

 Performance Ratios: 

 Return on average assets

1.22

%

1.31

%

1.27

%

1.07

%

1.06

%

 Return on average equity

11.34

12.52

12.37

10.44

10.35

 Net interest margin 

3.46

3.43

3.39

3.19

3.27

 Efficiency ratio 

58.56

57.99

59.85

61.01

62.00

 

BancFirst Corporation

Summary Financial Information

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

Nine months ended

September 30,

2017

2016

Condensed Income Statements: 

Net interest income 

$             168,440

$             152,275

Provision for loan losses 

5,189

9,847

Non-interest income:

Trust revenue

8,929

7,752

Service charges on deposits

48,859

46,228

Securities transactions

(352)

(111)

Income from sales of loans

2,180

2,120

Insurance commissions

12,894

11,762

Cash management

8,357

7,903

Other

4,370

3,947

Total noninterest income 

85,237

79,601

 Non-interest expense:

Salaries and employee benefits

93,672

89,956

Occupancy expense, net

9,264

9,115

Depreciation

7,305

7,653

Amortization of intangible assets

1,641

1,721

Data processing services

3,402

3,567

Net expense (income) from other real estate owned

320

(944)

Marketing and business promotion

5,564

5,258

Deposit insurance

1,683

2,335

Other

26,290

24,554

Total noninterest expense 

149,141

143,215

 Income before income taxes 

99,347

78,814

 Income tax expense 

32,405

26,760

 Net income 

$               66,942

$               52,054

 Per Common Share Data: 

 Net income-basic 

$                   2.11

$                   1.67

 Net income-diluted 

2.06

1.64

 Cash dividends declared

0.59

0.55

 Common shares outstanding 

31,863,063

31,390,166

 Average common shares outstanding -

   Basic

31,792,270

31,143,980

   Diluted

32,534,219

31,725,560

 Performance Ratios: 

 Return on average assets

1.26

%

1.03

%

 Return on average stockholders' equity

12.06

10.27

 Net interest margin 

3.42

3.27

 Efficiency ratio 

58.79

61.76

 

BancFirst Corporation

Summary Financial Information

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

2017

2017

2017

2016

2016

3rd Qtr 

2nd Qtr 

1st Qtr

4th Qtr 

3rd Qtr 

 Balance Sheet Data:

 Total assets

$  7,132,168

$  7,046,589

$    7,189,637

$    7,018,952

$     6,783,537

 Interest-bearing deposits with banks

1,530,928

1,533,147

1,857,961

1,666,540

1,532,095

 Securities

450,009

451,402

463,250

469,833

473,738

 Total loans

4,658,525

4,587,454

4,398,529

4,409,550

4,317,512

 Allowance for loan losses

(51,255)

(49,005)

(47,921)

(48,693)

(48,061)

 Deposits

6,302,046

6,235,682

6,394,627

6,248,057

6,024,949

 Stockholders' equity

764,414

748,462

729,873

711,094

693,731

 Book value per common share

23.99

23.53

22.97

22.49

22.10

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

21.93

21.44

20.86

20.36

19.94

 Balance Sheet Ratios:

 Average loans to deposits

73.59

%

71.47

%

70.13

%

70.98

%

71.77

%

 Average earning assets to total assets

93.37

93.44

93.45

93.30

93.16

 Average stockholders' equity to average assets

10.74

10.46

10.25

10.26

10.22

Asset Quality Data:

 Past due loans

$         2,122

$        2,217

$           2,024

$           1,962

$            1,906

 Nonaccrual loans

27,665

19,607

23,694

31,798

31,014

 Restructured loans

3,603

3,561

2,203

1,713

1,842

 Total nonperforming and restructured loans

33,390

25,385

27,921

35,473

34,762

 Other real estate owned and repossessed assets

4,099

4,211

4,404

3,866

4,339

 Total nonperforming and restructured assets

37,489

29,596

32,325

39,339

39,101

 Nonperforming and restructured loans to total loans

0.72

%

0.55

%

0.63

%

0.80

%

0.81

%

 Nonperforming and restructured assets to total assets

0.53

0.42

0.45

0.56

0.58

 Allowance to total loans

1.10

1.07

1.09

1.10

1.11

 Allowance to nonperforming and restructured loans

153.50

193.05

171.63

137.27

138.26

 Net charge-offs to average loans

0.02

0.02

0.02

0.02

0.03

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

Stockholders' equity

$    764,414

$    748,462

$      729,873

$      711,094

$        693,731

Less goodwill

54,042

54,042

54,042

54,042

54,042

Less intangible assets, net

11,645

12,203

12,768

13,330

13,898

Tangible stockholders' equity (non-GAAP)

$     698,727

$     682,217

$      663,063

$      643,722

$         625,791

Common shares outstanding

31,863,063

31,818,438

31,782,552

31,621,870

31,390,166

 Tangible book value per common share (non-GAAP)

21.93

21.44

20.86

20.36

19.94

(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

Nine Months Ended

September 30, 2017

September 30, 2017

Interest

Average

Interest

Average

Average

Income/

Yield/

Average

Income/

Yield/

Balance

Expense

Rate

Balance

Expense

Rate

ASSETS

Earning assets:

  Loans

$           4,597,267

$           56,319

4.86

%

$        4,501,675

$         165,132

4.90

%

  Securities – taxable

421,464

1,763

1.66

427,635

5,430

1.70

  Securities – tax exempt

30,920

287

3.68

32,107

848

3.53

  Interest bearing deposits with banks

1,552,975

4,978

1.27

1,650,902

12,844

1.04

     Total earning assets

6,602,626

63,347

3.81

6,612,319

184,254

3.73

Nonearning assets:

  Cash and due from banks

176,194

174,975

  Interest receivable and other assets

341,724

339,232

  Allowance for loan losses

(49,186)

(48,644)

     Total nonearning assets

468,732

465,563

     Total assets

$            7,071,358

$        7,077,882

LIABILITIES AND

  STOCKHOLDERS' EQUITY

Interest bearing liabilities:

  Transaction deposits                      

$           759,160

$               372

0.19

%

$           782,588

$               796

0.14

%

  Savings deposits

2,304,342

3,479

0.60

2,280,310

8,554

0.50

  Time deposits

668,378

1,396

0.83

678,520

3,922

0.77

  Short-term borrowings

2,262

6

0.99

1,906

13

0.92

  Junior subordinated debentures

31,959

532

6.60

31,959

1,589

6.65

     Total interest bearing liabilities

3,766,101

5,785

0.61

3,775,283

14,874

0.53

Interest free funds:

  Noninterest bearing deposits

2,515,521

2,533,750

  Interest payable and other liabilities

30,071

26,801

  Stockholders' equity

759,665

742,048

     Total interest free  funds

3,305,257

3,302,599

     Total liabilities and stockholders' equity

$            7,071,358

$        7,077,882

Net interest income

$           57,562

$         169,380

Net interest spread

3.20

%

3.20

%

Effect of interest free funds

0.26

%

0.22

%

Net interest margin

3.46

%

3.42

%

 

View original content:http://www.prnewswire.com/news-releases/bancfirst-corporation-reports-third-quarter-earnings-300540097.html

SOURCE BancFirst


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Press Releases

Related Entities

Dividend, Earnings, Definitive Agreement