OKLAHOMA CITY, April 21, 2020 /PRNewswire/ -- BancFirst
Corporation (NASDAQ GS:BANF) reported net income of $22.6 million, or $0.68 diluted earnings per share, for the first
quarter of 2020 compared to net income of $31.8 million, or $0.96 diluted earnings per share, for the first
quarter of 2019. The results for the first quarter of 2020
were negatively impacted primarily by a higher provision for loan
losses. The first quarter of 2020 includes the net income of
Pegasus Bank in Dallas, Texas,
which was acquired on August 15,
2019.
The provision for loan losses for the first quarter of 2020 was
$19.6 million compared to
$1.7 million a year ago. BancFirst
Corporation Executive Chairman David
Rainbolt commented, "Even though it was optional, we have
elected to go ahead and adopt CECL for our loan loss reserve
methodology. It is naïve to think that our region will not
experience a residual economic effect from the combination of both
the COVID-19 pandemic and low energy prices. The forward-looking
view afforded by CECL lets us factor in our expectations about that
future economy and its effect on loan losses. Our provision this
quarter is based on a modestly optimistic assumption on the timing
of an end to the pandemic, as well as the magnitude of the
government's stimulus response to it. To the extent the amount of
time the economy remains shuttered is more extended than our
current base projection, we will see a continuation of higher than
normal provision in future periods."
The Company's net interest income for the first quarter of 2020
increased to $74.1 million compared
to $66.9 million for the first
quarter of 2019. The net interest margin for the quarter was 3.82%
compared to 3.85% a year ago. Net charge-offs for the quarter
were less than 0.02% of average loans, compared to less than 0.01%
of average loans for the first quarter of 2019. Noninterest
income for the quarter totaled $35.1
million, compared to $32.0
million last year. Noninterest expense for the quarter
totaled $61.4 million compared to
$56.2 million last year. The increase
in noninterest expense was due to salary increases in 2020 and
acquisition related expenses related to the purchase of assets from
The Citizens State Bank of Okemah,
Oklahoma, which were partially offset by a $2.2 million gain on a sale of property carried
in other real estate owned. The Company's effective tax rate was
20.0% compared to 22.4% for the first quarter of 2019.
At March 31, 2020, the Company's
total assets were $8.7 billion, an
increase of $103.3 million from
December 31, 2019. Debt securities of
$592.0 million were up $100.4 million from December 31, 2019. Loans totaled $6.0 billion, an increase of $332.9 million from December 31, 2019. Deposits totaled $7.6 billion, an increase of $89.6 million from the December 31, 2019 total. The Company's total
stockholders' equity was $1.0
billion, an increase of $18.4
million over December 31,
2019.
Nonaccrual loans represent 0.75% of total loans at March 31, 2020, up from 0.32% at year-end 2019.
The increase in nonaccrual loans was primarily due to downgrades of
a few energy loans. The allowance to total loans was 1.17% up from
0.96% at year-end 2019. The allowance to nonaccrual loans was
155.11% compared to 301.91% at year-end 2019.
BancFirst Corporation CEO David
Harlow commented, "During the month of March and into April
as the impact of COVID-19 on the overall economy became more
evident, the Company acted on several fronts. Specifically,
we began the identification of all loan customers impacted by
COVID-19 that resulted in a modification of loan terms and coded
those loans in accordance with interagency guidelines. Importantly,
we created a task force that has worked 24/7 to facilitate the
Paycheck Protection Program through the Small Business
Administration. Through that program that began on
April 3 and ended on April 16 we approved 5,268 loans totaling
approximately $829 million.
"Although strictly limiting lobby traffic and precisely
following CDC guidance, we are fulfilling the duty of being
designated as critical infrastructure by the Department of Homeland
Security. Additionally, we have implemented an enhanced paid leave
program for all employees, added incentive pay for all hourly
employees in retail locations, and initiated a childcare stipend
for hourly employees at work with school age children at home."
On March 5, 2020, BancFirst
Corporation purchased assets and assumed liabilities of The
Citizens State Bank, Okemah,
Oklahoma. The Company purchased $47.9
million in assets and $23.5
million in loans and assumed $47.9
million in deposits.
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 109 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)
|
|
|
|
2020
|
|
2019
|
|
2019
|
|
2019
|
|
2019
|
|
|
1st
Qtr
|
|
4th
Qtr
|
|
3rd
Qtr
|
|
2nd
Qtr
|
|
1st
Qtr
|
|
Condensed
Income Statements:
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
74,073
|
|
$
73,939
|
|
$
72,287
|
|
$
68,792
|
|
$
66,903
|
|
Provision for
loan losses
|
19,583
|
|
1,412
|
|
2,758
|
|
2,433
|
|
1,684
|
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
|
Trust
revenue
|
3,655
|
|
3,682
|
|
3,490
|
|
3,250
|
|
3,177
|
|
Service charges on
deposits
|
18,804
|
|
19,938
|
|
19,866
|
|
19,114
|
|
17,663
|
|
Securities
transactions
|
50
|
|
(9)
|
|
--
|
|
821
|
|
--
|
|
Income from sales of
loans
|
781
|
|
1,089
|
|
964
|
|
868
|
|
698
|
|
Insurance
commissions
|
5,676
|
|
5,076
|
|
5,535
|
|
4,420
|
|
5,265
|
|
Cash
management
|
4,320
|
|
4,258
|
|
4,430
|
|
4,402
|
|
3,776
|
|
Other
|
1,859
|
|
1,490
|
|
1,342
|
|
1,202
|
|
1,422
|
|
Total noninterest
income
|
35,145
|
|
35,524
|
|
35,627
|
|
34,077
|
|
32,001
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
39,756
|
|
40,375
|
|
40,354
|
|
36,124
|
|
36,171
|
|
Occupancy expense,
net
|
3,546
|
|
3,738
|
|
3,386
|
|
2,953
|
|
2,627
|
|
Depreciation
|
3,491
|
|
3,355
|
|
3,268
|
|
3,015
|
|
2,985
|
|
Amortization of
intangible assets
|
964
|
|
1,007
|
|
842
|
|
758
|
|
759
|
|
Data processing
services
|
1,692
|
|
1,634
|
|
1,467
|
|
1,262
|
|
1,480
|
|
Net expense from other
real estate owned
|
(2,135)
|
|
(424)
|
|
26
|
|
97
|
|
(484)
|
|
Marketing and business
promotion
|
2,355
|
|
2,327
|
|
2,047
|
|
1,919
|
|
2,261
|
|
Deposit
insurance
|
136
|
|
147
|
|
(81)
|
|
544
|
|
533
|
|
Other
|
11,580
|
|
14,137
|
|
10,882
|
|
9,936
|
|
9,874
|
|
Total noninterest
expense
|
61,385
|
|
66,296
|
|
62,191
|
|
56,608
|
|
56,206
|
|
Income before
income taxes
|
28,250
|
|
41,755
|
|
42,965
|
|
43,828
|
|
41,014
|
|
Income tax
expense
|
5,642
|
|
6,248
|
|
9,597
|
|
9,661
|
|
9,177
|
|
Net
income
|
$
22,608
|
|
$
35,507
|
|
$
33,368
|
|
$
34,167
|
|
$
31,837
|
|
Per Common
Share Data:
|
|
|
|
|
|
|
|
|
|
|
Net
income-basic
|
$
0.69
|
|
$
1.09
|
|
$
1.02
|
|
$
1.04
|
|
$
0.98
|
|
Net
income-diluted
|
0.68
|
|
1.07
|
|
1.00
|
|
1.02
|
|
0.96
|
|
Cash dividends
declared
|
0.32
|
|
0.32
|
|
0.32
|
|
0.30
|
|
0.30
|
|
Common shares
outstanding
|
32,646,691
|
|
32,694,268
|
|
32,644,018
|
|
32,639,588
|
|
32,617,788
|
|
Average common
shares outstanding -
|
|
|
|
|
|
|
|
|
|
|
Basic
|
32,679,587
|
|
32,673,438
|
|
32,641,902
|
|
32,629,146
|
|
32,612,399
|
|
Diluted
|
33,287,359
|
|
33,366,848
|
|
33,327,213
|
|
33,317,193
|
|
33,292,852
|
|
Performance
Ratios:
|
|
|
|
|
|
|
|
|
|
|
Return on
average assets
|
1.07
|
%
|
1.66
|
%
|
1.65
|
%
|
1.78
|
%
|
1.69
|
%
|
Return on
average equity
|
8.87
|
|
13.76
|
|
13.80
|
|
14.54
|
|
14.08
|
|
Net interest
margin
|
3.82
|
|
3.78
|
|
3.89
|
|
3.89
|
|
3.85
|
|
Efficiency
ratio
|
56.20
|
|
60.56
|
|
57.63
|
|
55.03
|
|
56.83
|
|
|
|
|
|
|
|
|
|
|
|
|
BancFirst Corporation
Summary Financial
Information
(Dollars in
thousands, except per share and share data -
Unaudited)
|
|
|
|
|
2020
|
|
2019
|
|
2019
|
|
2019
|
|
2019
|
|
|
1st
Qtr
|
|
4th
Qtr
|
|
3rd
Qtr
|
|
2nd
Qtr
|
|
1st
Qtr
|
|
Balance
Sheet Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
8,669,096
|
|
$
8,565,758
|
|
$
8,388,816
|
|
$
7,642,021
|
|
$
7,709,000
|
|
Interest-bearing deposits with banks
|
1,356,826
|
|
1,646,238
|
|
1,476,340
|
|
1,518,998
|
|
1,291,447
|
|
Debt
securities
|
591,987
|
|
491,626
|
|
555,575
|
|
425,154
|
|
724,872
|
|
Total
loans
|
6,006,065
|
|
5,673,144
|
|
5,622,897
|
|
5,105,302
|
|
5,050,221
|
|
Allowance for
loan losses
|
(70,080)
|
|
(54,238)
|
|
(55,928)
|
|
(55,108)
|
|
(52,915)
|
|
Deposits
|
7,573,200
|
|
7,483,635
|
|
7,330,677
|
|
6,613,613
|
|
6,706,386
|
|
Stockholders'
equity
|
1,023,380
|
|
1,004,989
|
|
979,752
|
|
956,380
|
|
927,927
|
|
Book value per
common share
|
31.35
|
|
30.74
|
|
30.01
|
|
29.30
|
|
28.45
|
|
Tangible book
value per common share (non-GAAP)(1)
|
26.09
|
|
25.50
|
|
24.77
|
|
26.40
|
|
25.52
|
|
Balance
Sheet Ratios:
|
|
|
|
|
|
|
|
|
|
|
Average loans
to deposits
|
77.75
|
%
|
75.83
|
%
|
76.97
|
%
|
76.07
|
%
|
75.34
|
%
|
Average earning
assets to total assets
|
91.51
|
|
91.50
|
|
92.23
|
|
92.43
|
|
92.42
|
|
Average
stockholders' equity to average assets
|
12.02
|
|
12.04
|
|
11.96
|
|
12.25
|
|
12.01
|
|
Asset Quality
Data:
|
|
|
|
|
|
|
|
|
|
|
Past due
loans
|
$
10,065
|
|
$
11,834
|
|
$
11,215
|
|
$
2,663
|
|
$
2,170
|
|
Nonaccrual
loans
|
45,181
|
|
17,965
|
|
19,995
|
|
17,998
|
|
21,594
|
|
Restructured
loans
|
3,158
|
|
18,010
|
|
17,504
|
|
16,486
|
|
14,552
|
|
Total
nonperforming and restructured loans
|
58,404
|
|
47,809
|
|
48,714
|
|
37,147
|
|
38,316
|
|
Other real
estate owned and repossessed assets
|
6,001
|
|
6,073
|
|
7,055
|
|
7,004
|
|
6,433
|
|
Total
nonperforming and restructured assets
|
64,405
|
|
53,882
|
|
55,769
|
|
44,151
|
|
44,749
|
|
Nonaccrual
loans to total loans
|
0.75
|
%
|
0.32
|
%
|
0.36
|
%
|
0.35
|
%
|
0.43
|
%
|
Nonperforming
and restructured loans to total loans
|
0.97
|
|
0.84
|
|
0.87
|
|
0.73
|
|
0.76
|
|
Nonperforming
and restructured assets to total assets
|
0.74
|
|
0.63
|
|
0.66
|
|
0.58
|
|
0.58
|
|
Allowance to
total loans
|
1.17
|
|
0.96
|
|
0.99
|
|
1.08
|
|
1.05
|
|
Allowance to
nonaccrual loans
|
155.11
|
|
301.91
|
|
279.72
|
|
306.20
|
|
245.05
|
|
Allowance to
nonperforming and restructured loans
|
119.99
|
|
113.45
|
|
114.81
|
|
148.35
|
|
138.10
|
|
Net charge-offs
to average loans
|
0.02
|
|
0.06
|
|
0.04
|
|
0.01
|
|
0.00
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Tangible Book Value Per Common Share (non-GAAP)(2):
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
$
1,023,380
|
|
$
1,004,989
|
|
$
979,752
|
|
$
956,380
|
|
$
927,927
|
|
Less
goodwill
|
149,923
|
|
148,604
|
|
147,013
|
|
79,749
|
|
79,749
|
|
Less intangible
assets, net
|
21,850
|
|
22,608
|
|
24,025
|
|
14,936
|
|
15,701
|
|
Tangible
stockholders' equity (non-GAAP)
|
$
851,607
|
|
$
833,777
|
|
$
808,714
|
|
$
861,695
|
|
$
832,477
|
|
Common shares
outstanding
|
32,646,691
|
|
32,694,268
|
|
32,644,018
|
|
32,639,588
|
|
32,617,788
|
|
Tangible book
value per common share (non-GAAP)
|
$
26.09
|
|
$
25.50
|
|
$
24.77
|
|
$
26.40
|
|
$
25.52
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
|
|
|
|
|
March 31,
2020
|
|
|
|
|
|
|
|
|
Average
|
|
Income/
|
|
Yield/
|
|
|
|
|
|
|
|
|
Balance
|
|
Expense
|
|
Rate
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
|
|
|
|
$
5,770,502
|
|
$
76,658
|
|
5.33
|
%
|
Securities –
taxable
|
|
|
|
|
|
|
506,893
|
|
2,577
|
|
2.04
|
|
Securities –
tax exempt
|
|
|
|
|
|
|
17,474
|
|
136
|
|
3.12
|
|
Interest
bearing deposits with banks
|
|
|
|
|
|
|
1,493,771
|
|
4,769
|
|
1.28
|
|
Total earning
assets
|
|
|
|
|
|
|
7,788,640
|
|
84,140
|
|
4.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonearning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due
from banks
|
|
|
|
|
|
|
191,682
|
|
|
|
|
|
Interest
receivable and other assets
|
|
|
|
|
|
|
582,200
|
|
|
|
|
|
Allowance for
loan losses
|
|
|
|
|
|
|
(51,515)
|
|
|
|
|
|
Total nonearning
assets
|
|
|
|
|
|
|
722,367
|
|
|
|
|
|
Total assets
|
|
|
|
|
|
|
$
8,511,007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction
deposits
|
|
|
|
|
|
|
$
815,827
|
|
$
515
|
|
0.25
|
%
|
Savings
deposits
|
|
|
|
|
|
|
3,020,093
|
|
6,249
|
|
0.83
|
|
Time
deposits
|
|
|
|
|
|
|
697,821
|
|
2,636
|
|
1.51
|
|
Short-term
borrowings
|
|
|
|
|
|
|
2,448
|
|
7
|
|
1.18
|
|
Junior
subordinated debentures
|
|
|
|
|
|
|
26,804
|
|
491
|
|
7.35
|
|
Total interest-bearing
liabilities
|
|
|
|
|
|
|
4,562,993
|
|
9,898
|
|
0.87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-free
funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
bearing deposits
|
|
|
|
|
|
|
2,888,342
|
|
|
|
|
|
Interest
payable and other liabilities
|
|
|
|
|
|
|
36,879
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
|
1,022,793
|
|
|
|
|
|
Total interest
free-funds
|
|
|
|
|
|
|
3,948,014
|
|
|
|
|
|
Total liabilities
and stockholders'
equity
|
|
|
|
|
|
|
$
8,511,007
|
|
|
|
|
|
Net interest
income
|
|
|
|
|
|
|
|
|
$
74,242
|
|
|
|
Net interest
spread
|
|
|
|
|
|
|
|
|
|
|
3.46
|
%
|
Effect of interest
free funds
|
|
|
|
|
|
|
|
|
|
|
0.36
|
%
|
Net interest
margin
|
|
|
|
|
|
|
|
|
|
|
3.82
|
%
|
View original
content:http://www.prnewswire.com/news-releases/bancfirst-corporation-reports-first-quarter-earnings-301044662.html
SOURCE BancFirst