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BancFirst Corporation Reports Third Quarter Earnings

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October 21, 2021 4:20 PM EDT

OKLAHOMA CITY, Oct. 21, 2021 /PRNewswire/ -- BancFirst Corporation (NASDAQ GS: BANF) reported net income of $38.8 million, or $1.16 diluted earnings per share, for the third quarter of 2021 compared to net income of $20.9 million, or $0.63 diluted earnings per share, for the third quarter of 2020. The Company recorded a provision for credit losses of $1.5 million for the three months ended September 30, 2021 compared to a provision for credit losses of $18.7 million for the three months ended September 30, 2020. Net income for the nine months ended September 30, 2021 was $129.5 million, or $3.88 diluted earnings per share, compared to $64.2 million, or $1.94 diluted earnings per share, for the nine months ended September 30, 2020. The Company recorded a net benefit from reversal of provisions for credit losses of $8.5 million for the nine months ended September 30, 2021 compared to a provision for credit losses of $57.7 million for the nine months ended September 30, 2020.

BancFirst Corporation Executive Chairman David Rainbolt commented, "Recently, COVID cases have begun to decline in Oklahoma, but continue to impact some businesses. As a result, our revised quarterly economic scenario supports a stable reserve. Consequently, the provision was very slight this quarter.  We would anticipate the economic effects of the pandemic to wane more rapidly over the next quarter which would imply a lower reserve going forward."

The Company's net interest income for the third quarter of 2021 increased to $80.2 million compared to $75.9 million for the third quarter of 2020, as a result of an increase of $6.1 million in fee income from Paycheck Protection Program (PPP) loan forgiveness. The net interest margin for the quarter was 3.09% compared to 3.40% a year ago. Noninterest income for the quarter totaled $39.8 million, compared to $34.6 million last year. The increase in noninterest income was attributable to $2.9 million in rental income from other real estate property, a $2.1 million increase in income from debit card interchange fees and a $1.5 million increase in insurance commissions. Noninterest expense for the quarter increased to $70.2 million compared to $66.1 million last year, because of the increase in approximately $2.0 million related to other real estate property operating costs and $1.0 million in net occupancy and depreciation primarily from the Company's new corporate headquarters. The Company's effective tax rate was 19.7% compared to 18.4% for the third quarter of 2020.  

At September 30, 2021, the Company's total assets were $11.3 billion, an increase of $2.1 billion from December 31, 2020. Loans totaled $6.0 billion, a decrease of $410.3 million from December 31, 2020 stemming from a net decrease of approximately $451.5 million in PPP loans and approximately $21 million of loans that were sold with the Company's Hugo, Oklahoma branch, which were partially offset by approximately $149 million of acquired loans from the First National Bank and Trust Company of Vinita, Oklahoma. Deposits totaled $10.0 billion, an increase of $1.9 billion from December 31, 2020. The increase in assets and deposits was predominantly related to PPP and other government stimulus payments. At September 30, 2021, the balance of PPP loans was $201.2 million. The Company's total stockholders' equity was $1.1 billion, an increase of $79.0 million over December 31, 2020. Off-balance sheet sweep accounts totaled $2.7 billion at September 30, 2021 compared to $2.8 billion at December 31, 2020.

Nonaccrual loans represent 0.44% of total loans at September 30, 2021, down from 0.58% at year-end 2020. Net charge-offs for the quarter were 0.01% of average loans, compared to 0.03% in the third quarter of 2020. The allowance for credit losses to total loans was 1.43% at September 30, 2021 compared to 1.42% at year-end 2020, and the allowance for credit losses to nonaccrual loans was 324.96% compared to 243.35% at year-end 2020. At September 30, 2021, the Company's nonaccrual loans decreased $10.9 million from year-end 2020, as a result of the resolution of several loans, which was offset by $7.2 million of nonaccrual loans acquired from The First National Bank and Trust Company of Vinita, Oklahoma. At September 30, 2021, the Company's other real estate owned (OREO) increased $6.8 million from December 31, 2020, and included approximately $4.0 million from the repossession of one commercial real estate property, $2.4 million from the decommissioning of the Company's previous headquarters, and approximately $600,000 acquired from The First National Bank and Trust Company of Vinita, Oklahoma.

BancFirst Corporation CEO David Harlow commented, "Fees related to ongoing PPP loan forgiveness and a year-to-date negative provision have allowed for outsized EPS through the first nine months of the year.  For the remainder of this year and into 2022, our challenge will be to grow loans and stabilize our margin while continuing to build upon and expand our non-interest and fee based revenues."

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 108 banking locations serving 59 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

2021

2021

2020

2020

3rd Qtr  

2nd Qtr  

1st Qtr  

4th Qtr  

3rd Qtr  

 Condensed Income Statements:  

 Net interest income  

$                    80,190

$                    82,363

$                    77,206

$                    79,535

$                    75,852

 Provision for (benefit from) credit losses  

1,483

(9,949)

—

4,992

18,740

 Non-interest income:

Trust revenue

3,210

3,264

3,102

2,976

3,131

Service charges on deposits

21,706

20,524

19,100

19,796

19,078

Securities transactions

150

172

95

156

—

Income from sales of loans

1,594

2,133

2,010

1,852

1,873

Insurance commissions

6,666

5,015

5,989

5,680

5,197

Cash management

3,127

3,068

3,003

3,135

3,701

Other

3,333

10,442

6,636

1,825

1,595

Total noninterest income  

39,786

44,618

39,935

35,420

34,575

 Non-interest expense:

Salaries and employee benefits

42,267

41,992

39,577

40,750

41,995

Occupancy expense, net

5,086

4,528

4,348

4,533

4,503

Depreciation

4,207

4,133

3,877

3,779

3,795

Amortization of intangible assets

755

809

793

915

968

Data processing services

1,734

1,660

1,678

1,763

1,669

Net expense from other real estate owned

1,810

3,357

1,510

420

196

Marketing and business promotion

1,796

1,648

1,879

1,671

1,485

Deposit insurance

846

766

876

857

723

Other

11,713

15,130

10,425

10,923

10,749

   Total noninterest expense  

70,214

74,023

64,963

65,611

66,083

 Income before income taxes  

48,279

62,907

52,178

44,352

25,604

 Income tax expense  

9,529

14,715

9,658

8,994

4,714

 Net income  

$                    38,750

$                    48,192

$                    42,520

$                    35,358

$                    20,890

 Per Common Share Data:  

 Net income-basic  

$                        1.18

$                        1.47

$                        1.30

$                        1.08

$                        0.64

 Net income-diluted  

1.16

1.45

1.27

1.06

0.63

 Cash dividends declared

0.36

0.34

0.34

0.34

0.34

 Common shares outstanding  

32,572,217

32,784,513

32,771,013

32,719,852

32,679,191

 Average common shares outstanding - 

   Basic 

32,744,104

32,779,227

32,756,852

32,690,296

32,668,789

   Diluted 

33,267,955

33,405,923

33,408,116

33,275,550

33,168,938

 Performance Ratios:  

 Return on average assets

1.37%

1.79%

1.69%

1.45%

0.86%

 Return on average stockholders' equity

13.42

17.42

15.90

13.25

7.89

 Net interest margin  

3.09

3.32

3.36

3.55

3.40

 Efficiency ratio  

58.52

58.29

55.46

57.08

59.84

 

 

BancFirstCorporation

Summary Financial Information

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

Nine months ended

September 30,

2021

2020

 Condensed Income Statements:  

 Net interest income  

$                  239,759

$                  227,133

(Benefit from) provision for credit losses  

(8,466)

57,656

 Non-interest income:

Trust revenue

9,576

10,154

Service charges on deposits

61,330

54,642

Securities transactions

417

(545)

Income from sales of loans

5,737

4,215

Insurance commissions

17,670

15,316

Cash management

9,198

12,276

Other

20,411

5,744

Total noninterest income  

124,339

101,802

 Non-interest expense:

Salaries and employee benefits

123,836

123,977

Occupancy expense, net

13,962

11,888

Depreciation

12,217

10,830

Amortization of intangible assets

2,357

2,900

Data processing services

5,072

4,990

Net income (expense) from other real estate owned

6,677

(1,951)

Marketing and business promotion

5,323

5,325

Deposit insurance

2,488

1,224

Other

37,268

32,936

Total noninterest expense  

209,200

192,119

 Income before income taxes  

163,364

79,160

 Income tax expense  

33,902

14,932

 Net income  

$                  129,462

$                    64,228

 Per Common Share Data:  

 Net income-basic  

$                        3.95

$                        1.97

 Net income-diluted  

3.88

1.94

 Cash dividends declared

1.04

0.98

 Common shares outstanding  

32,572,217

32,679,191

 Average common shares outstanding - 

   Basic 

32,760,015

32,666,554

   Diluted 

33,358,837

33,190,294

 Performance Ratios:  

 Return on average assets

1.61%

0.93%

 Return on average stockholders' equity

15.54

8.24

 Net interest margin  

3.25

3.58

 Efficiency ratio  

57.46

58.41

 

 

BancFirstCorporation

Summary Financial Information

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

2021

2021

2021

2020

2020

3rd Qtr

2nd Qtr

1st Qtr  

4th Qtr

3rd Qtr

Balance Sheet Data:

Total assets 

$ 11,302,771

$ 11,015,287

$ 10,549,305

$ 9,212,357

$ 9,618,868

Interest-bearing deposits with banks

3,836,809

3,373,099

2,788,316

1,336,394

1,609,462

Debt securities 

529,484

563,771

520,543

555,196

596,941

Total loans 

6,037,886

6,207,262

6,380,108

6,448,225

6,660,694

Allowance for credit losses 

(86,463)

(83,963)

(90,860)

(91,366)

(106,126)

Deposits 

9,992,044

9,728,389

9,371,940

8,064,704

8,495,891

Stockholders' equity 

1,146,874

1,131,591

1,094,671

1,067,885

1,043,752

Book value per common share 

35.21

34.52

33.40

32.64

31.94

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

30.04

29.35

28.27

27.47

26.74

Balance Sheet Ratios: 

Average loans to deposits 

61.56%

65.36%

70.84%

77.02%

78.55%

Average earning assets to total assets 

92.13

92.01

91.54

91.82

91.99

Average stockholders' equity to average assets 

10.22

10.25

10.64

10.91

10.90

Asset Quality Data:

Past due loans

$          5,186

$          4,386

$          5,282

$        4,802

$        6,412

Nonaccrual loans (5)

26,607

29,802

35,326

37,545

82,385

Restructured loans

7,073

7,485

7,801

7,784

2,837

Total nonperforming and restructured loans

38,866

41,673

48,409

50,131

91,634

Other real estate owned and repossessed assets

39,060

40,183

30,320

32,480

4,939

Total nonperforming and restructured assets

77,926

81,856

78,729

82,611

96,573

Nonaccrual loans to total loans

0.44%

0.48%

0.55%

0.58%

1.24%

Nonaccrual loans to total Non-PPP loans (non-GAAP)(3)

0.46

0.51

0.62

0.65

1.41

Nonperforming and restructured loans to total loans

0.64

0.67

0.76

0.78

1.38

Nonperforming and restructured loans to total Non-PPP loans (non-GAAP)(3)

0.67

0.71

0.85

0.86

1.57

Nonperforming and restructured assets to total assets

0.69

0.74

0.75

0.90

1.00

Allowance to total loans

1.43

1.35

1.42

1.42

1.59

Allowance to total Non-PPP loans (non-GAAP)(3)

1.48

1.44

1.60

1.58

1.82

Allowance to nonaccrual loans

324.96

281.73

257.20

243.35

128.82

Allowance to nonperforming and restructured loans

222.46

201.48

187.69

182.26

115.81

Net charge-offs to average loans

0.01

0.06

0.01

0.30

0.03

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

Stockholders' equity 

$   1,146,874

$   1,131,591

$   1,094,671

$ 1,067,885

$ 1,043,752

Less goodwill

149,922

149,922

149,922

149,922

149,922

Less intangible assets, net

18,325

19,283

18,206

18,999

19,914

Tangible stockholders' equity (non-GAAP)

$      978,627

$      962,386

$      926,543

$    898,964

$    873,916

Common shares outstanding

32,572,217

32,784,513

32,771,013

32,719,852

32,679,191

Tangible book value per common share (non-GAAP) 

$          30.04

$          29.35

$          28.27

$        27.47

$        26.74

(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. 

Reconciliation of Non-PPP loan ratios (non-GAAP)(4):

Total loans

$   6,037,886

$   6,207,262

$   6,380,108

$ 6,448,225

$ 6,660,694

Less PPP loans

201,208

368,620

713,714

652,693

831,703

Total Non-PPP loans (non-GAAP)

$   5,836,678

$   5,838,642

$   5,666,394

$ 5,795,532

$ 5,828,991

Nonaccrual loans (5)

26,607

29,802

35,326

37,545

82,385

Nonaccrual loans to total Non-PPP loans (non-GAAP)

0.46%

0.51%

0.62%

0.65%

1.41%

Total nonperforming and restructured loans

38,866

41,673

48,409

50,131

91,634

Nonperforming and restructured loans to total Non-PPP loans (non-GAAP)

0.67%

0.71%

0.85%

0.86%

1.57%

Allowance for credit losses

(86,463)

(83,963)

(90,860)

(91,366)

(106,126)

Allowance to total Non-PPP loans (non-GAAP)

1.48%

1.44%

1.60%

1.58%

1.82%

(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 $3.1 million of nonaccrual loans at September 30, 2021.

 

 

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, 2021

September 30, 2021

Interest

Average

Interest

Average

Average

Income/

Yield/

Average

Income/

Yield/

Balance

Expense

Rate

Balance

Expense

Rate

ASSETS

Earning assets:

  Loans

$        6,103,533

$             80,370

5.22

%

$        6,267,176

$           240,733

5.14

%

  Debt securities – taxable

536,690

1,484

1.10

531,109

4,779

1.20

  Debt securities – tax exempt

6,336

45

2.83

13,530

222

2.20

  Interest bearing deposits with banks and FFS

3,682,313

1,441

0.16

3,064,852

2,861

0.12

     Total earning assets

10,328,872

83,340

3.20

9,876,667

248,595

3.37

Nonearning assets:

  Cash and due from banks

269,153

270,724

  Interest receivable and other assets

696,567

688,223

  Allowance for credit losses

(83,969)

(89,116)

     Total nonearning assets

881,751

869,831

     Total assets

$      11,210,623

$      10,746,498

LIABILITIES AND STOCKHOLDERS' EQUITY

Interest bearing liabilities:

  Transaction deposits 

$           881,043

$                  161

0.07

%

$           835,363

$                  465

0.07

%

  Savings deposits

3,825,687

989

0.10

3,675,121

3,034

0.11

  Time deposits

659,490

838

0.50

658,306

2,814

0.57

  Short-term borrowings

2,713

—

0.10

2,595

1

0.07

  Subordinated debt

85,964

1,031

4.76

46,957

2,100

5.98

     Total interest bearing liabilities

5,454,897

3,019

0.22

5,218,342

8,414

0.22

Interest free funds:

  Noninterest bearing deposits

4,547,944

4,363,925

  Interest payable and other liabilities

61,794

50,469

  Stockholders' equity

1,145,988

1,113,762

     Total interest free  funds

5,755,726

5,528,156

     Total liabilities and stockholders' equity

$      11,210,623

$      10,746,498

Net interest income

$             80,321

$           240,181

Net interest spread

2.98

%

3.15

%

Effect of interest free funds

0.11

%

0.10

%

Net interest margin

3.09

%

3.25

%

 

Cision View original content:https://www.prnewswire.com/news-releases/bancfirst-corporation-reports-third-quarter-earnings-301406173.html

SOURCE BancFirst


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