OKLAHOMA CITY, Oct. 17, 2019 /PRNewswire/ -- BancFirst
Corporation (NASDAQ GS:BANF) reported net income of $33.4 million, or $1.00 diluted earnings per share, for the third
quarter of 2019 compared to net income of $32.9 million, or $0.98 diluted earnings per share, for the third
quarter of 2018. Net income for the nine months ended September 30, 2019 was $99.4 million, or $2.98 per share, compared to $93.1 million, or $2.78 per share, for the nine months ended
September 30, 2018. On August 15, 2019 the Company completed the
acquisition of Pegasus Bank in Dallas,
Texas. As a result, the third quarter of 2019 included
one-time acquisition related expenses of approximately $3.1 million, which reduced diluted earnings per
share by approximately 7 cents for
the quarter and the year. On January 11,
2018 the Company completed the acquisitions of two
Oklahoma banking corporations.
Consequently, the first nine months of 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 third quarter of 2019
increased to $72.3 million compared
to $65.7 million for the third
quarter of 2018. The net interest margin for the quarter was 3.89%
compared to 3.68% a year ago. The increase in margin was primarily
due to the higher average federal funds rate in the third quarter
of 2019 when compared to the same period in 2018. The provision for
loan losses for the third quarter of 2019 was $2.8 million compared to $747,000 a year ago. The increase in provision
was primarily due to downgrades of a few commercial loans. Net
charge-offs for the full year of 2019 were 0.05% of average loans
compared to 0.04% of average loans in 2018. Net charge-offs for the
third quarter of 2019 were 0.04% of average loans compared to 0.02%
of average loans in 2018. Noninterest income for the quarter
totaled $35.6 million, compared to
$32.8 million last year. The increase
in noninterest income was primarily due to growth in debit card
usage fees and sweep fees. Noninterest expense for the quarter
totaled $62.2 million compared to
$55.8 million last year. The increase
in noninterest expense was primarily due to salary increases in
2019 and acquisition related expenses.
At September 30, 2019, the
Company's total assets were $8.4
billion, an increase of $814.6
million from December 31,
2018. Securities of $555.6
million were down $216.6
million from December 31,
2018. Loans totaled $5.6
billion, an increase of $638.7
million from December 31,
2018. Deposits totaled $7.3
billion, an increase of $725.2
million from the December 31,
2018 total. The Company's total stockholders' equity was
$979.8 million, an increase of
$77.0 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. BancFirst
Corporation intends to provide an appropriate amount of capital to
increase Pegasus Bank's ability to approve larger loans and allow
Pegasus to continue to grow their assets.
Asset quality remained strong during the third quarter of 2019.
Nonperforming and restructured assets represented 0.67% of total
assets at September 30, 2019,
virtually unchanged from the prior year. The allowance to total
loans was 0.99% down slightly from 1.03% at year-end 2018. The
allowance to nonperforming and restructured loans was 114.06%
compared to 136.29% at year-end 2018.
BancFirst Corporation CEO David
Harlow commented, "The Company reported strong results in
the third quarter. Asset quality remained solid and our margin was
stable despite the two 25 bps Fed Funds decreases during the
quarter. We are pleased to have closed the previously announced
Pegasus acquisition during the quarter and look forward to the
growth opportunities the Dallas
market provides the Company going forward."
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
|
|
2018
|
|
2018
|
|
|
3rd
Qtr
|
|
2nd
Qtr
|
|
1st
Qtr
|
|
4th
Qtr
|
|
3rd
Qtr
|
|
Condensed Income
Statements:
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$ 72,287
|
|
$ 68,792
|
|
$ 66,903
|
|
$ 66,888
|
|
$ 65,673
|
|
Provision for loan
losses
|
2,758
|
|
2,433
|
|
1,684
|
|
1,516
|
|
747
|
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
|
Trust
revenue
|
3,490
|
|
3,250
|
|
3,177
|
|
3,023
|
|
3,281
|
|
Service charges on
deposits
|
19,866
|
|
19,114
|
|
17,663
|
|
18,554
|
|
18,103
|
|
Securities
transactions
|
--
|
|
821
|
|
--
|
|
10
|
|
(64)
|
|
Income from sales of
loans
|
964
|
|
868
|
|
698
|
|
649
|
|
800
|
|
Insurance
commissions
|
5,535
|
|
4,420
|
|
5,265
|
|
4,593
|
|
5,207
|
|
Cash
management
|
4,430
|
|
4,402
|
|
3,776
|
|
3,338
|
|
3,383
|
|
Other
|
1,342
|
|
1,202
|
|
1,422
|
|
1,684
|
|
2,091
|
|
Total noninterest
income
|
35,627
|
|
34,077
|
|
32,001
|
|
31,851
|
|
32,801
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
40,354
|
|
36,124
|
|
36,171
|
|
35,530
|
|
35,051
|
|
Occupancy expense,
net
|
3,386
|
|
2,953
|
|
2,627
|
|
3,307
|
|
3,386
|
|
Depreciation
|
3,268
|
|
3,015
|
|
2,985
|
|
2,965
|
|
2,733
|
|
Amortization of
intangible assets
|
842
|
|
758
|
|
759
|
|
777
|
|
740
|
|
Data processing
services
|
1,467
|
|
1,262
|
|
1,480
|
|
1,140
|
|
1,418
|
|
Net expense from other
real estate owned
|
26
|
|
97
|
|
(484)
|
|
130
|
|
64
|
|
Marketing and business
promotion
|
2,047
|
|
1,919
|
|
2,261
|
|
2,030
|
|
1,997
|
|
Deposit
insurance
|
(81)
|
|
544
|
|
533
|
|
571
|
|
597
|
|
Other
|
10,882
|
|
9,936
|
|
9,874
|
|
9,716
|
|
9,823
|
|
Total noninterest
expense
|
62,191
|
|
56,608
|
|
56,206
|
|
56,166
|
|
55,809
|
|
Income before income
taxes
|
42,965
|
|
43,828
|
|
41,014
|
|
41,057
|
|
41,918
|
|
Income tax
expense
|
9,597
|
|
9,661
|
|
9,177
|
|
8,332
|
|
9,035
|
|
Net income
|
$ 33,368
|
|
$ 34,167
|
|
$ 31,837
|
|
$ 32,725
|
|
$ 32,883
|
|
Per Common Share
Data:
|
|
|
|
|
|
|
|
|
|
|
Net
income-basic
|
$ 1.02
|
|
$ 1.04
|
|
$ 0.98
|
|
$ 1.00
|
|
$ 1.01
|
|
Net
income-diluted
|
1.00
|
|
1.02
|
|
0.96
|
|
0.98
|
|
0.98
|
|
Cash dividends
declared
|
0.32
|
|
0.30
|
|
0.30
|
|
0.30
|
|
0.30
|
|
Common shares
outstanding
|
32,644,018
|
|
32,639,588
|
|
32,617,788
|
|
32,603,926
|
|
32,749,690
|
|
Average common shares
outstanding -
|
|
|
|
|
|
|
|
|
|
|
Basic
|
32,641,902
|
|
32,629,146
|
|
32,612,399
|
|
32,721,626
|
|
32,742,480
|
|
Diluted
|
33,327,213
|
|
33,317,193
|
|
33,292,852
|
|
33,423,458
|
|
33,504,143
|
|
Performance
Ratios:
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
1.65
|
%
|
1.78
|
%
|
1.69
|
%
|
1.70
|
%
|
1.71
|
%
|
Return on average
equity
|
13.80
|
|
14.54
|
|
14.08
|
|
14.48
|
|
14.86
|
|
Net interest
margin
|
3.89
|
|
3.89
|
|
3.85
|
|
3.77
|
|
3.68
|
|
Efficiency
ratio
|
57.63
|
|
55.03
|
|
56.83
|
|
56.88
|
|
56.67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BancFirst
Corporation
|
Summary Financial
Information
|
(Dollars in
thousands, except per share and share data -
Unaudited)
|
|
|
Nine months
ended September
30,
|
|
|
2019
|
|
2018
|
|
Condensed Income
Statements:
|
|
|
|
|
Net interest
income
|
$ 207,982
|
|
$ 193,588
|
|
Provision for loan
losses
|
6,875
|
|
2,286
|
|
Non-interest
income:
|
|
|
|
|
Trust
revenue
|
9,917
|
|
9,806
|
|
Service charges on
deposits
|
56,643
|
|
52,293
|
|
Securities
transactions
|
821
|
|
37
|
|
Income from sales of
loans
|
2,530
|
|
2,253
|
|
Insurance
commissions
|
15,220
|
|
14,333
|
|
Cash
management
|
12,608
|
|
9,785
|
|
Other
|
3,966
|
|
4,841
|
|
Total noninterest
income
|
101,705
|
|
93,348
|
|
|
|
|
|
|
Non-interest
expense:
|
|
|
|
|
Salaries and employee
benefits
|
112,649
|
|
104,017
|
|
Occupancy expense,
net
|
8,966
|
|
10,184
|
|
Depreciation
|
9,268
|
|
7,572
|
|
Amortization of
intangible assets
|
2,359
|
|
2,232
|
|
Data processing
services
|
4,209
|
|
3,816
|
|
Net expense from other
real estate owned
|
(361)
|
|
109
|
|
Marketing and business
promotion
|
6,227
|
|
5,998
|
|
Deposit
insurance
|
996
|
|
1,856
|
|
Other
|
30,692
|
|
30,171
|
|
Total noninterest
expense
|
175,005
|
|
165,955
|
|
Income before income
taxes
|
127,807
|
|
118,695
|
|
Income tax
expense
|
28,435
|
|
25,606
|
|
Net income
|
$ 99,372
|
|
$ 93,089
|
|
Per Common Share
Data:
|
|
|
|
|
Net
income-basic
|
$ 3.04
|
|
$ 2.85
|
|
Net
income-diluted
|
2.98
|
|
2.78
|
|
Cash dividends
declared
|
0.92
|
|
0.72
|
|
Common shares
outstanding
|
32,644,018
|
|
32,749,690
|
|
Average common shares
outstanding -
|
|
|
|
|
Basic
|
32,627,924
|
|
32,678,310
|
|
Diluted
|
33,314,298
|
|
33,430,761
|
|
Performance
Ratios:
|
|
|
|
|
Return on average
assets
|
1.71
|
%
|
1.64
|
%
|
Return on average
stockholders' equity
|
14.14
|
|
14.62
|
|
Net interest
margin
|
3.88
|
|
3.68
|
|
Efficiency
ratio
|
56.51
|
|
57.84
|
|
|
|
|
BancFirst
Corporation
|
Summary Financial
Information
|
(Dollars in
thousands, except per share and share data -
Unaudited)
|
|
|
|
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
2018
|
|
|
3rd
Qtr
|
|
2nd
Qtr
|
|
1st
Qtr
|
|
4th
Qtr
|
|
3rd
Qtr
|
|
Balance Sheet
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
8,388,816
|
|
$
7,642,021
|
|
$
7,709,000
|
|
$
7,574,258
|
|
$
7,602,438
|
|
Interest-bearing
deposits with banks
|
1,476,340
|
|
1,518,998
|
|
1,291,447
|
|
1,195,824
|
|
1,607,157
|
|
Debt
securities
|
555,575
|
|
425,154
|
|
724,872
|
|
772,132
|
|
477,080
|
|
Total
loans
|
5,622,897
|
|
5,105,302
|
|
5,050,221
|
|
4,984,150
|
|
4,952,267
|
|
Allowance for loan
losses
|
(55,928)
|
|
(55,108)
|
|
(52,915)
|
|
(51,389)
|
|
(51,875)
|
|
Deposits
|
7,330,677
|
|
6,613,613
|
|
6,706,386
|
|
6,605,495
|
|
6,643,131
|
|
Stockholders'
equity
|
979,752
|
|
956,380
|
|
927,927
|
|
902,789
|
|
884,801
|
|
Book value per common
share
|
30.01
|
|
29.30
|
|
28.45
|
|
27.69
|
|
27.02
|
|
Tangible book value
per common share (non-GAAP)(1)
|
24.77
|
|
26.40
|
|
25.52
|
|
24.74
|
|
24.06
|
|
Balance Sheet
Ratios:
|
|
|
|
|
|
|
|
|
|
|
Average loans to
deposits
|
77.68
|
%
|
76.07
|
%
|
75.34
|
%
|
74.24
|
%
|
74.50
|
%
|
Average earning
assets to total assets
|
92.23
|
|
92.43
|
|
92.42
|
|
92.48
|
|
92.87
|
|
Average stockholders'
equity to average assets
|
11.96
|
|
12.25
|
|
12.01
|
|
11.76
|
|
11.51
|
|
Asset Quality
Data:
|
|
|
|
|
|
|
|
|
|
|
Past due
loans
|
$ 11,214
|
|
$ 2,663
|
|
$ 2,170
|
|
$ 1,916
|
|
$ 4,073
|
|
Nonaccrual
loans
|
20,316
|
|
17,998
|
|
21,594
|
|
22,603
|
|
26,880
|
|
Restructured
loans
|
17,504
|
|
16,486
|
|
14,552
|
|
13,188
|
|
13,557
|
|
Total nonperforming
and restructured loans
|
49,034
|
|
37,147
|
|
38,316
|
|
37,707
|
|
44,510
|
|
Other real estate
owned and repossessed assets
|
7,056
|
|
7,004
|
|
6,433
|
|
6,873
|
|
7,072
|
|
Total nonperforming
and restructured assets
|
56,090
|
|
44,151
|
|
44,749
|
|
44,580
|
|
51,582
|
|
Nonperforming and
restructured loans to total loans
|
0.87
|
%
|
0.73
|
%
|
0.76
|
%
|
0.76
|
%
|
0.90
|
%
|
Nonperforming and
restructured assets to total assets
|
0.67
|
|
0.58
|
|
0.58
|
|
0.59
|
|
0.68
|
|
Allowance to total
loans
|
0.99
|
|
1.08
|
|
1.05
|
|
1.03
|
|
1.05
|
|
Allowance to
nonperforming and restructured loans
|
114.06
|
|
148.35
|
|
138.10
|
|
136.29
|
|
116.55
|
|
Net charge-offs to
average loans
|
0.04
|
|
0.01
|
|
0.00
|
|
0.04
|
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Tangible Book Value Per Common Share (non-GAAP)(2):
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
$ 979,752
|
|
$ 956,380
|
|
$ 927,927
|
|
$ 902,789
|
|
$ 884,801
|
|
Less
goodwill
|
147,013
|
|
79,749
|
|
79,749
|
|
79,749
|
|
79,733
|
|
Less intangible
assets, net
|
24,025
|
|
14,936
|
|
15,701
|
|
16,470
|
|
17,257
|
|
Tangible
stockholders' equity (non-GAAP)
|
$ 808,714
|
|
$ 861,695
|
|
$ 832,477
|
|
$ 806,570
|
|
$ 787,811
|
|
Common shares
outstanding
|
32,644,018
|
|
32,639,588
|
|
32,617,788
|
|
32,603,926
|
|
32,749,690
|
|
Tangible book value per
common share (non-GAAP)
|
$ 24.77
|
|
$ 26.40
|
|
$ 25.52
|
|
$ 24.74
|
|
$ 24.06
|
|
|
|
|
|
|
|
|
|
|
|
|
(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,
2019
|
|
September 30,
2019
|
|
|
|
|
Interest
|
|
Average
|
|
|
|
Interest
|
|
Average
|
|
|
Average
|
|
Income/
|
|
Yield/
|
|
Average
|
|
Income/
|
|
Yield/
|
|
|
Balance
|
|
Expense
|
|
Rate
|
|
Balance
|
|
Expense
|
|
Rate
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
5,376,278
|
|
$ 75,446
|
|
5.57
|
%
|
$
5,158,737
|
|
$ 215,462
|
|
5.58
|
%
|
Securities –
taxable
|
427,152
|
|
2,361
|
|
2.19
|
|
613,365
|
|
10,551
|
|
2.30
|
|
Securities – tax
exempt
|
17,399
|
|
130
|
|
2.96
|
|
19,687
|
|
439
|
|
2.98
|
|
Interest bearing
deposits with banks
|
1,577,446
|
|
8,705
|
|
2.19
|
|
1,397,739
|
|
24,590
|
|
2.35
|
|
Total earning
assets
|
7,398,275
|
|
86,642
|
|
4.65
|
|
7,189,528
|
|
251,042
|
|
4.67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonearning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
178,862
|
|
|
|
|
|
178,826
|
|
|
|
|
|
Interest receivable and
other assets
|
500,067
|
|
|
|
|
|
469,615
|
|
|
|
|
|
Allowance for loan
losses
|
(56,056)
|
|
|
|
|
|
(53,814)
|
|
|
|
|
|
Total nonearning
assets
|
622,873
|
|
|
|
|
|
594,627
|
|
|
|
|
|
Total
assets
|
$
8,021,148
|
|
|
|
|
|
$
7,784,155
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
Interest bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction
deposits
|
$ 737,162
|
|
$ 646
|
|
0.35
|
%
|
$ 743,158
|
|
$ 1,967
|
|
0.35
|
%
|
Savings
deposits
|
2,835,855
|
|
10,127
|
|
1.42
|
|
2,700,393
|
|
30,852
|
|
1.53
|
|
Time
deposits
|
690,867
|
|
2,871
|
|
1.65
|
|
688,056
|
|
8,164
|
|
1.59
|
|
Short-term
borrowings
|
1,063
|
|
7
|
|
2.72
|
|
1,650
|
|
29
|
|
2.31
|
|
Junior subordinated
debentures
|
26,804
|
|
491
|
|
7.27
|
|
26,804
|
|
1,474
|
|
7.35
|
|
Total interest bearing
liabilities
|
4,291,751
|
|
14,142
|
|
1.31
|
|
4,160,061
|
|
42,486
|
|
1.37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest free
funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest bearing
deposits
|
2,720,830
|
|
|
|
|
|
2,643,189
|
|
|
|
|
|
Interest payable and
other liabilities
|
49,262
|
|
|
|
|
|
41,138
|
|
|
|
|
|
Stockholders'
equity
|
959,305
|
|
|
|
|
|
939,767
|
|
|
|
|
|
Total interest free
funds
|
3,729,397
|
|
|
|
|
|
3,624,094
|
|
|
|
|
|
Total
liabilities and stockholders'
equity
|
$
8,021,148
|
|
|
|
|
|
$
7,784,155
|
|
|
|
|
|
Net interest
income
|
|
|
$ 72,500
|
|
|
|
|
|
$ 208,556
|
|
|
|
Net interest
spread
|
|
|
|
|
3.34
|
%
|
|
|
|
|
3.30
|
%
|
Effect of interest
free funds
|
|
|
|
|
0.55
|
%
|
|
|
|
|
0.58
|
%
|
Net interest
margin
|
|
|
|
|
3.89
|
%
|
|
|
|
|
3.88
|
%
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/bancfirst-corporation-reports-third-quarter-earnings-300940898.html
SOURCE BancFirst