OKLAHOMA CITY, Jan. 17, 2019 /PRNewswire/ -- BancFirst
Corporation (NASDAQ GS:BANF) reported net income of $32.7 million, or $0.98 diluted earnings per share, for the fourth
quarter of 2018 compared to net income of $19.5 million, or $0.59 diluted earnings per share, for the fourth
quarter of 2017. Net income for the fourth quarter of 2017 included
a write down on deferred tax assets of $4.3
million due to the signing of the Tax Cuts and Jobs Act,
which reduced the corporate tax rate beginning in 2018. Net
income for the year ended December 31,
2018 was $125.8 million, or
$3.76 diluted earnings per share,
compared to $86.4 million, or
$2.65 diluted earnings per share, for
the year ended December 31, 2017. 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. Net income for the year ended
December 31, 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 and also included a gain
of $2.7 million, net of income tax
and fees, from the sale of an investment by Council Oak Investment
Corporation, a wholly-owned subsidiary of BancFirst.
The Company's net interest income for the fourth quarter of 2018
increased to $68.9 million compared
to $58.7 million for the fourth
quarter of 2017. The net interest margin for the quarter was 3.77%
compared to 3.48% a year ago. The increase in margin was primarily
due to the increase in the federal funds rate throughout 2017 and
2018 and the two acquisitions in the first quarter of 2018. The
provision for loan losses for the fourth quarter of 2018 was
$1.5 million compared to $3.3 million a year ago. Net charge-offs
decreased slightly to 0.04% of average loans for the fourth quarter
of 2018 compared to 0.06% for the fourth quarter of
2017. Noninterest income for the quarter totaled $31.9 million, compared to $32.8 million last year. The decrease in
noninterest income was due to the investment gain in 2017 described
above, offset by growth in debit card usage fees, insurance
commissions and cash management revenue in 2018. Noninterest
expense for the quarter totaled $56.2
million compared to $51.3
million last year. The increase in noninterest expense was
primarily due to salary increases in 2018 and the two acquisitions.
The Company's effective tax rate for the fourth quarter of 2018 was
20.3% compared to 47.2% for the fourth quarter of 2017. The
decrease in the effective tax rate compared to the fourth quarter
of 2017 was due to the change in tax rates from the Tax Cuts and
Jobs Act and a write down on deferred tax assets described
above.
At December 31, 2018, the
Company's total assets were $7.6
billion, an increase of $321.1
million from December 31,
2017. The increase in total assets was primarily related to
the acquisitions during the first quarter of 2018. Securities were
$772.1 million, an increase of
$307.8 million from December 31, 2017. The increase in securities was
primarily related to a purchase of short term treasury securities
towards the end of the year with approximate maturities of six
months. Loans totaled $5.0 billion,
an increase of $256.0 million over
December 31, 2017, deposits totaled
$6.6 billion, an increase of
$190.5 million over the December 31, 2017 total, both increases were
primarily related to the acquisitions. The Company's total
stockholders' equity was $902.8
million, an increase of $127.2
million over December 31,
2017.
Asset quality remained strong during the fourth quarter of 2018.
Nonperforming and restructured assets were 0.59% of total assets at
December 31, 2018 compared to 0.61%
at December 31, 2017. The allowance
to total loans was 1.03% compared to 1.09% at year-end 2017. The
allowance to nonperforming and restructured loans was 136.3%
compared to 130.6% at year-end 2017.
On January 11, 2018, the Company
completed the previously announced acquisitions of two Oklahoma banking corporations. First Wagoner
Corporation and its subsidiary bank, First Bank & Trust
Company, and First Chandler Corp. and its subsidiary bank, First
Bank of Chandler, had combined total assets of approximately
$378 million. The Company exchanged a
combination of cash and stock for these transactions.
On August 31, 2018 the Company's
wholly-owned subsidiary, BFTower, LLC, completed the purchase of
Cotter Ranch Tower in Oklahoma
City for $21.0 million. The
Tower consists of an aggregate of 507,000 square feet, has 36
floors and is the second tallest building in Oklahoma City. The Company plans to move its
headquarters to this location as soon as renovations are
complete.
BancFirst Corporation CEO David
Harlow commented, "Fueled by margin expansion as a result of
rising interest rates, a reduced corporate income tax rate as a
result of the Tax Cuts and Jobs Act and a stable Oklahoma economy, 2018 was a record earnings
year for our company."
BancFirst Corporation (the Company) is an Oklahoma based financial services holding
company. The Company's principal subsidiary bank, BancFirst,
is Oklahoma's largest
state-chartered bank with 107 banking locations serving 58
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)
|
|
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
|
4th
Qtr
|
|
3rd
Qtr
|
|
2nd
Qtr
|
|
1st
Qtr
|
|
4th
Qtr
|
|
Condensed
Income Statements:
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
68,888
|
|
$
65,673
|
|
$
64,880
|
|
$
63,035
|
|
$
58,699
|
|
Provision for
loan losses
|
1,516
|
|
747
|
|
1,225
|
|
314
|
|
3,323
|
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
|
Trust
revenue
|
3,023
|
|
3,281
|
|
3,396
|
|
3,129
|
|
3,073
|
|
Service charges on
deposits
|
18,554
|
|
18,103
|
|
17,537
|
|
16,653
|
|
16,693
|
|
Securities
transactions
|
10
|
|
(64)
|
|
115
|
|
(14)
|
|
4,412
|
|
Income from sales of
loans
|
649
|
|
800
|
|
802
|
|
651
|
|
741
|
|
Insurance
commissions
|
4,593
|
|
5,207
|
|
3,927
|
|
5,199
|
|
3,917
|
|
Cash
management
|
3,338
|
|
3,383
|
|
3,381
|
|
3,021
|
|
2,798
|
|
Other
|
1,684
|
|
2,091
|
|
1,279
|
|
1,471
|
|
1,199
|
|
Total noninterest
income
|
31,851
|
|
32,801
|
|
30,437
|
|
30,110
|
|
32,833
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
35,530
|
|
35,051
|
|
34,776
|
|
34,190
|
|
31,477
|
|
Occupancy expense,
net
|
3,307
|
|
3,386
|
|
3,396
|
|
3,402
|
|
3,327
|
|
Depreciation
|
2,965
|
|
2,733
|
|
2,429
|
|
2,410
|
|
2,298
|
|
Amortization of
intangible assets
|
777
|
|
740
|
|
759
|
|
733
|
|
547
|
|
Data processing
services
|
1,140
|
|
1,418
|
|
1,195
|
|
1,203
|
|
1,252
|
|
Net expense from other
real estate owned
|
130
|
|
64
|
|
19
|
|
26
|
|
101
|
|
Marketing and business
promotion
|
2,030
|
|
1,997
|
|
1,649
|
|
2,352
|
|
1,825
|
|
Deposit
insurance
|
571
|
|
597
|
|
640
|
|
619
|
|
578
|
|
Other
|
9,716
|
|
9,823
|
|
9,393
|
|
10,955
|
|
9,846
|
|
Total noninterest
expense
|
56,166
|
|
55,809
|
|
54,256
|
|
55,890
|
|
51,251
|
|
Income before
income taxes
|
41,057
|
|
41,918
|
|
39,836
|
|
36,941
|
|
36,958
|
|
Income tax
expense
|
8,332
|
|
9,035
|
|
9,250
|
|
7,321
|
|
17,461
|
|
Net
income
|
$
32,725
|
|
$
32,883
|
|
$
30,586
|
|
$
29,620
|
|
$
19,497
|
|
Per Common
Share Data:
|
|
|
|
|
|
|
|
|
|
|
Net
income-basic
|
$
1.00
|
|
$
1.01
|
|
$
0.93
|
|
$
0.91
|
|
$
0.61
|
|
Net
income-diluted
|
0.98
|
|
0.98
|
|
0.91
|
|
0.89
|
|
0.59
|
|
Cash dividends
declared
|
0.30
|
|
0.30
|
|
0.21
|
|
0.21
|
|
0.21
|
|
Common shares
outstanding
|
32,603,926
|
|
32,749,690
|
|
32,731,215
|
|
32,707,166
|
|
31,894,563
|
|
Average common
shares outstanding -
|
|
|
|
|
|
|
|
|
|
|
Basic
|
32,721,626
|
|
32,742,480
|
|
32,716,350
|
|
32,574,251
|
|
31,876,784
|
|
Diluted
|
33,423,458
|
|
33,504,143
|
|
33,458,858
|
|
33,317,744
|
|
32,652,265
|
|
Performance
Ratios:
|
|
|
|
|
|
|
|
|
|
|
Return on
average assets
|
1.70
|
%
|
1.71
|
%
|
1.62
|
%
|
1.60
|
%
|
1.07
|
%
|
Return on
average equity
|
14.48
|
|
14.86
|
|
14.41
|
|
14.60
|
|
9.97
|
|
Net interest
margin
|
3.77
|
|
3.68
|
|
3.70
|
|
3.66
|
|
3.48
|
|
Efficiency
ratio
|
56.88
|
|
56.67
|
|
56.92
|
|
60.00
|
|
55.99
|
|
|
|
|
|
|
|
|
|
|
|
|
BancFirst Corporation
|
Summary Financial
Information
|
(Dollars in
thousands, except per share and share data - Unaudited, except
where noted*)
|
|
|
|
Twelve months
ended
December
31,
|
|
|
2018
|
|
2017*
|
|
Condensed
Income Statements:
|
|
|
|
|
|
Net interest
income
|
|
$
260,476
|
|
$
227,139
|
|
Provision for
loan losses
|
|
3,802
|
|
8,512
|
|
Non-interest
income:
|
|
|
|
|
|
Trust
revenue
|
|
12,829
|
|
12,002
|
|
Service charges on
deposits
|
|
70,847
|
|
65,552
|
|
Securities
transactions
|
|
47
|
|
4,060
|
|
Income from sales of
loans
|
|
2,902
|
|
2,921
|
|
Insurance
commissions
|
|
18,926
|
|
16,811
|
|
Cash
management
|
|
13,123
|
|
11,155
|
|
Other
|
|
6,525
|
|
5,569
|
|
Total noninterest
income
|
|
125,199
|
|
118,070
|
|
|
|
|
|
|
|
Non-interest
expense:
|
|
|
|
|
|
Salaries and employee
benefits
|
|
139,547
|
|
125,149
|
|
Occupancy expense,
net
|
|
13,491
|
|
12,591
|
|
Depreciation
|
|
10,537
|
|
9,603
|
|
Amortization of
intangible assets
|
|
3,009
|
|
2,188
|
|
Data processing
services
|
|
4,956
|
|
4,654
|
|
Net expense from other
real estate owned
|
|
239
|
|
421
|
|
Marketing and business
promotion
|
|
8,028
|
|
7,389
|
|
Deposit
insurance
|
|
2,427
|
|
2,261
|
|
Other
|
|
39,887
|
|
36,136
|
|
Total noninterest
expense
|
|
222,121
|
|
200,392
|
|
Income before
income taxes
|
|
159,752
|
|
136,305
|
|
Income tax
expense
|
|
33,938
|
|
49,866
|
|
Net
income
|
|
$
125,814
|
|
$
86,439
|
|
Per Common
Share Data:
|
|
|
|
|
|
Net
income-basic
|
|
$
3.85
|
|
$
2.72
|
|
Net
income-diluted
|
|
3.76
|
|
2.65
|
|
Cash dividends
declared
|
|
1.02
|
|
0.80
|
|
Common shares
outstanding
|
|
32,603,926
|
|
31,894,563
|
|
Average common
shares outstanding -
|
|
|
|
|
|
Basic
|
|
32,689,228
|
|
31,813,572
|
|
Diluted
|
|
33,430,714
|
|
32,568,105
|
|
Performance
Ratios:
|
|
|
|
|
|
Return on
average assets
|
|
1.66
|
%
|
1.22
|
%
|
Return on
average stockholders' equity
|
|
14.59
|
|
11.52
|
|
Net interest
margin
|
|
3.70
|
|
3.44
|
|
Efficiency
ratio
|
|
57.59
|
|
58.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BancFirst Corporation
|
Summary Financial
Information
|
(Dollars in
thousands, except per share and share data -
Unaudited)
|
|
|
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
|
4th
Qtr
|
|
3rd
Qtr
|
|
2nd
Qtr
|
|
1st
Qtr
|
|
4th
Qtr
|
|
Balance
Sheet Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
7,574,258
|
|
$
7,602,438
|
|
$
7,622,963
|
|
$
7,615,642
|
|
$
7,253,156
|
|
Interest-bearing deposits with banks
|
1,195,824
|
|
1,607,157
|
|
1,579,577
|
|
1,590,240
|
|
1,541,771
|
|
Securities
|
772,132
|
|
477,080
|
|
462,871
|
|
493,101
|
|
464,291
|
|
Total
loans
|
4,984,150
|
|
4,952,267
|
|
5,017,071
|
|
4,990,681
|
|
4,728,168
|
|
Allowance for
loan losses
|
(51,389)
|
|
(51,875)
|
|
(52,200)
|
|
(51,550)
|
|
(51,666)
|
|
Deposits
|
6,605,495
|
|
6,643,131
|
|
6,692,174
|
|
6,713,052
|
|
6,415,045
|
|
Stockholders'
equity
|
902,789
|
|
884,801
|
|
862,012
|
|
838,096
|
|
775,629
|
|
Book value per
common share
|
27.69
|
|
27.02
|
|
26.34
|
|
25.62
|
|
24.32
|
|
Tangible book
value per common share (non-GAAP)(1)
|
24.74
|
|
24.06
|
|
23.35
|
|
22.61
|
|
22.28
|
|
Balance
Sheet Ratios:
|
|
|
|
|
|
|
|
|
|
|
Average loans
to deposits
|
74.24
|
%
|
74.76
|
%
|
74.38
|
%
|
75.42
|
%
|
73.63
|
%
|
Average earning
assets to total assets
|
92.48
|
|
93.04
|
|
93.11
|
|
93.14
|
|
93.36
|
|
Average
stockholders' equity to average assets
|
11.76
|
|
11.23
|
|
11.23
|
|
10.95
|
|
10.78
|
|
Asset Quality
Data:
|
|
|
|
|
|
|
|
|
|
|
Past due
loans
|
$
1,916
|
|
$
4,073
|
|
$
2,916
|
|
$
3,900
|
|
$
2,893
|
|
Nonaccrual
loans
|
22,603
|
|
26,880
|
|
29,936
|
|
31,849
|
|
31,943
|
|
Restructured
loans
|
13,188
|
|
13,557
|
|
14,527
|
|
12,945
|
|
4,720
|
|
Total
nonperforming and restructured loans
|
37,707
|
|
44,510
|
|
47,379
|
|
48,694
|
|
39,556
|
|
Other real
estate owned and repossessed assets
|
6,873
|
|
7,072
|
|
3,847
|
|
3,676
|
|
4,424
|
|
Total
nonperforming and restructured assets
|
44,580
|
|
51,582
|
|
51,226
|
|
52,370
|
|
43,980
|
|
Nonperforming
and restructured loans to total loans
|
0.76
|
%
|
0.90
|
%
|
0.94
|
%
|
0.98
|
%
|
0.84
|
%
|
Nonperforming
and restructured assets to total assets
|
0.59
|
|
0.68
|
|
0.67
|
|
0.69
|
|
0.61
|
|
Allowance to
total loans
|
1.03
|
|
1.05
|
|
1.04
|
|
1.03
|
|
1.09
|
|
Allowance to
nonperforming and restructured loans
|
136.29
|
|
116.55
|
|
110.18
|
|
105.87
|
|
130.62
|
|
Net charge-offs
to average loans
|
0.04
|
|
0.02
|
|
0.01
|
|
0.01
|
|
0.06
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Tangible Book Value Per Common Share (non-GAAP)(2):
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
$
902,789
|
|
$
884,801
|
|
$
862,012
|
|
$
838,096
|
|
$
775,629
|
|
Less
goodwill
|
79,749
|
|
79,733
|
|
79,733
|
|
79,796
|
|
54,042
|
|
Less intangible
assets, net
|
16,470
|
|
17,257
|
|
18,012
|
|
18,782
|
|
11,082
|
|
Tangible
stockholders' equity (non-GAAP)
|
$
806,570
|
|
$
787,811
|
|
$
764,267
|
|
$
739,518
|
|
$
710,505
|
|
Common shares
outstanding
|
32,603,926
|
|
32,749,690
|
|
32,731,215
|
|
32,707,166
|
|
31,894,563
|
|
Tangible book
value per common share (non-GAAP)
|
$
24.74
|
|
$
24.06
|
|
$
23.35
|
|
$
22.61
|
|
$
22.28
|
|
|
|
|
|
|
|
|
|
|
|
|
(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,
2018
|
|
December 31,
2018
|
|
|
|
|
Interest
|
|
Average
|
|
|
|
Interest
|
|
Average
|
|
|
Average
|
|
Income/
|
|
Yield/
|
|
Average
|
|
Income/
|
|
Yield/
|
|
|
Balance
|
|
Expense
|
|
Rate
|
|
Balance
|
|
Expense
|
|
Rate
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
4,941,280
|
|
$
67,920
|
|
5.45
|
%
|
$
4,966,965
|
|
$
263,577
|
|
5.31
|
%
|
Securities –
taxable
|
480,590
|
|
2,708
|
|
2.24
|
|
448,271
|
|
8,808
|
|
1.96
|
|
Securities –
tax exempt
|
21,843
|
|
165
|
|
2.99
|
|
25,677
|
|
771
|
|
3.00
|
|
Interest
bearing deposits with banks
|
1,607,352
|
|
9,134
|
|
2.25
|
|
1,609,030
|
|
30,694
|
|
1.91
|
|
Total earning
assets
|
7,051,065
|
|
79,927
|
|
4.50
|
|
7,049,943
|
|
303,850
|
|
4.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonearning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due
from banks
|
188,972
|
|
|
|
|
|
185,380
|
|
|
|
|
|
Interest
receivable and other assets
|
435,767
|
|
|
|
|
|
405,730
|
|
|
|
|
|
Allowance for
loan losses
|
(51,781)
|
|
|
|
|
|
(52,087)
|
|
|
|
|
|
Total nonearning
assets
|
572,958
|
|
|
|
|
|
539,023
|
|
|
|
|
|
Total assets
|
$
7,624,023
|
|
|
|
|
|
$
7,588,966
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
Interest bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction
deposits
|
$
757,463
|
|
$
721
|
|
0.38
|
%
|
$
790,587
|
|
$
2,461
|
|
0.31
|
%
|
Savings
deposits
|
2,544,400
|
|
9,157
|
|
1.43
|
|
2,513,244
|
|
29,462
|
|
1.17
|
|
Time
deposits
|
716,953
|
|
2,434
|
|
1.35
|
|
746,189
|
|
8,539
|
|
1.14
|
|
Short-term
borrowings
|
1,677
|
|
10
|
|
2.31
|
|
5,159
|
|
95
|
|
1.84
|
|
Junior
subordinated debentures
|
31,118
|
|
545
|
|
6.94
|
|
31,747
|
|
2,171
|
|
6.84
|
|
Total interest bearing
liabilities
|
4,051,611
|
|
12,867
|
|
1.26
|
|
4,086,926
|
|
42,728
|
|
1.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest free
funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
bearing deposits
|
2,636,631
|
|
|
|
|
|
2,605,280
|
|
|
|
|
|
Interest
payable and other liabilities
|
39,185
|
|
|
|
|
|
34,198
|
|
|
|
|
|
Stockholders'
equity
|
896,596
|
|
|
|
|
|
862,562
|
|
|
|
|
|
Total interest free
funds
|
3,572,412
|
|
|
|
|
|
3,502,040
|
|
|
|
|
|
Total liabilities
and
stockholders' equity
|
$
7,624,023
|
|
|
|
|
|
$
7,588,966
|
|
|
|
|
|
Net interest
income
|
|
|
$
67,060
|
|
|
|
|
|
$
261,122
|
|
|
|
Net interest
spread
|
|
|
|
|
3.24
|
%
|
|
|
|
|
3.26
|
%
|
Effect of interest
free funds
|
|
|
|
|
0.53
|
%
|
|
|
|
|
0.44
|
%
|
Net interest
margin
|
|
|
|
|
3.77
|
%
|
|
|
|
|
3.70
|
%
|
View original
content:http://www.prnewswire.com/news-releases/bancfirst-corporation-reports-fourth-quarter-earnings-300780374.html
SOURCE BancFirst