OKLAHOMA CITY, Oct. 19, 2018 /PRNewswire/ -- BancFirst
Corporation (NASDAQ GS: BANF) reported net income of $32.9 million, or $0.98 diluted earnings per share, for the third
quarter of 2018 compared to net income of $21.7 million, or $0.67 diluted earnings per share, for the third
quarter of 2017. Net income for the nine months ended
September 30, 2018 was $93.1 million, or $2.78 diluted earnings per share, compared to
$66.9 million, or $2.06 diluted earnings per share, for the nine
months ended September 30, 2017. 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. Net
income for the nine months ended September
30, 2017 included the effects of favorable resolutions of
two problem loans which resulted in principal recovery of
$894,000 and unaccrued interest
income of $2.3 million.
The Company's net interest income for the third quarter of 2018
increased to $65.7 million compared
to $57.2 million for the third
quarter of 2017. The net interest margin for the quarter was 3.68%
compared to 3.46% 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 third quarter of 2018 was
$747,000 compared to $3.3 million a year ago. Net charge-offs
for the third quarter of 2017 and 2018 were both 0.02% of average
loans. Noninterest income for the quarter totaled
$32.8 million, compared to
$29.2 million last year. The increase
in noninterest income was primarily due to the growth in debit card
usage fees, insurance commissions and cash management revenue.
Noninterest expense for the quarter totaled $55.8 million compared to $50.6 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
third quarter of 2018 was 21.6% compared to 19.8% for the first
quarter of 2018 and 33.3% for the third quarter of 2017. The
effective tax rate for the first quarter of 2018 included the
effects of stock option exercises during the quarter. The decrease
in the effective tax rate compared to the third quarter of 2017 was
due to the change in tax rates from the Tax Cuts and Jobs Act and
exercising of stock options during the third quarter of
2018.
At September 30, 2018, the
Company's total assets were $7.6
billion, an increase of $349.3
million from December 31,
2017. The increase in total assets was primarily related to
the acquisitions during the first quarter. Securities of
$477.1 million were up slightly from
December 31, 2017. Loans totaled
$5.0 billion, a slight decrease from
June 30, 2018. Loan growth for the
nine months ended September 30, 2018
was primarily from acquired loans. Deposits totaled $6.6 billion, an increase of $228.1 million from the December 31, 2017 total, which was primarily
related to the acquisitions. The Company's total stockholders'
equity was $884.8 million, an
increase of $109.2 million over
December 31, 2017.
Asset quality remained strong during the third quarter of
2018. Nonperforming and restructured assets were 0.68% of
total assets at September 30, 2018
compared to 0.61% at December 31,
2017. The allowance to total loans was 1.05% compared to
1.09% at year-end 2017. The allowance to nonperforming and
restructured loans was 116.5% 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, "Rising rates, a lower corporate income
tax rate and a stable Oklahoma
economy again contributed to significant year over year
improvement; non-interest income growth is noteworthy while asset
quality remains strong, combining for solid third quarter
results."
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
|
|
2017
|
|
2017
|
|
|
3rd
Qtr
|
|
2nd
Qtr
|
|
1st
Qtr
|
|
4th
Qtr
|
|
3rd
Qtr
|
|
Condensed
Income Statements:
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
65,673
|
|
$
64,880
|
|
$
63,035
|
|
$
58,699
|
|
$
57,233
|
|
Provision for
loan losses
|
747
|
|
1,225
|
|
314
|
|
3,323
|
|
3,276
|
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
|
Trust
revenue
|
3,281
|
|
3,396
|
|
3,129
|
|
3,073
|
|
3,083
|
|
Service charges on
deposits
|
18,103
|
|
17,537
|
|
16,653
|
|
16,693
|
|
16,633
|
|
Securities
transactions
|
(64)
|
|
115
|
|
(14)
|
|
4,412
|
|
(22)
|
|
Income from sales of
loans
|
800
|
|
802
|
|
651
|
|
741
|
|
732
|
|
Insurance
commissions
|
5,207
|
|
3,927
|
|
5,199
|
|
3,917
|
|
4,603
|
|
Cash
management
|
3,383
|
|
3,381
|
|
3,021
|
|
2,798
|
|
2,804
|
|
Other
|
2,091
|
|
1,279
|
|
1,471
|
|
1,199
|
|
1,336
|
|
Total noninterest
income
|
32,801
|
|
30,437
|
|
30,110
|
|
32,833
|
|
29,169
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
35,051
|
|
34,776
|
|
34,190
|
|
31,477
|
|
31,471
|
|
Occupancy expense,
net
|
3,386
|
|
3,396
|
|
3,402
|
|
3,327
|
|
3,298
|
|
Depreciation
|
2,733
|
|
2,429
|
|
2,410
|
|
2,298
|
|
2,493
|
|
Amortization of
intangible assets
|
740
|
|
759
|
|
733
|
|
547
|
|
547
|
|
Data processing
services
|
1,418
|
|
1,195
|
|
1,203
|
|
1,252
|
|
1,110
|
|
Net expense from other
real estate owned
|
64
|
|
19
|
|
26
|
|
101
|
|
68
|
|
Marketing and business
promotion
|
1,997
|
|
1,649
|
|
2,352
|
|
1,825
|
|
1,790
|
|
Deposit
insurance
|
597
|
|
640
|
|
619
|
|
578
|
|
553
|
|
Other
|
9,823
|
|
9,393
|
|
10,955
|
|
9,846
|
|
9,270
|
|
Total noninterest
expense
|
55,809
|
|
54,256
|
|
55,890
|
|
51,251
|
|
50,600
|
|
Income before
income taxes
|
41,918
|
|
39,836
|
|
36,941
|
|
36,958
|
|
32,526
|
|
Income tax
expense
|
9,035
|
|
9,250
|
|
7,321
|
|
17,461
|
|
10,816
|
|
Net
income
|
$
32,883
|
|
$
30,586
|
|
$
29,620
|
|
$
19,497
|
|
$
21,710
|
|
Per Common
Share Data:
|
|
|
|
|
|
|
|
|
|
|
Net
income-basic
|
$
1.01
|
|
$
0.93
|
|
$
0.91
|
|
$
0.61
|
|
$
0.68
|
|
Net
income-diluted
|
0.98
|
|
0.91
|
|
0.89
|
|
0.59
|
|
0.67
|
|
Cash dividends
declared
|
0.30
|
|
0.21
|
|
0.21
|
|
0.21
|
|
0.21
|
|
Common shares
outstanding
|
32,749,690
|
|
32,731,215
|
|
32,707,166
|
|
31,894,563
|
|
31,863,063
|
|
Average common
shares outstanding -
|
|
|
|
|
|
|
|
|
|
|
Basic
|
32,742,480
|
|
32,716,350
|
|
32,574,251
|
|
31,876,784
|
|
31,838,392
|
|
Diluted
|
33,504,143
|
|
33,458,858
|
|
33,317,744
|
|
32,652,265
|
|
32,592,277
|
|
Performance
Ratios:
|
|
|
|
|
|
|
|
|
|
|
Return on
average assets
|
1.71
|
%
|
1.62
|
%
|
1.60
|
%
|
1.07
|
%
|
1.22
|
%
|
Return on
average equity
|
14.86
|
|
14.41
|
|
14.60
|
|
9.97
|
|
11.34
|
|
Net interest
margin
|
3.68
|
|
3.70
|
|
3.66
|
|
3.48
|
|
3.46
|
|
Efficiency
ratio
|
56.67
|
|
56.92
|
|
60.00
|
|
55.99
|
|
58.56
|
|
|
|
|
|
|
|
|
|
|
|
|
BancFirst Corporation
|
Summary Financial
Information
|
(Dollars in
thousands, except per share and share data -
Unaudited)
|
|
|
Nine months
ended
September
30,
|
|
|
2018
|
|
2017
|
|
Condensed
Income Statements:
|
|
|
|
|
Net interest
income
|
$
193,588
|
|
$
168,440
|
|
Provision for
loan losses
|
2,286
|
|
5,189
|
|
Non-interest
income:
|
|
|
|
|
Trust
revenue
|
9,806
|
|
8,929
|
|
Service charges on
deposits
|
52,293
|
|
48,859
|
|
Securities
transactions
|
37
|
|
(352)
|
|
Income from sales of
loans
|
2,253
|
|
2,180
|
|
Insurance
commissions
|
14,333
|
|
12,894
|
|
Cash
management
|
9,785
|
|
8,357
|
|
Other
|
4,841
|
|
4,370
|
|
Total noninterest
income
|
93,348
|
|
85,237
|
|
|
|
|
|
|
Non-interest
expense:
|
|
|
|
|
Salaries and employee
benefits
|
104,017
|
|
93,672
|
|
Occupancy expense,
net
|
10,184
|
|
9,264
|
|
Depreciation
|
7,572
|
|
7,305
|
|
Amortization of
intangible assets
|
2,232
|
|
1,641
|
|
Data processing
services
|
3,816
|
|
3,402
|
|
Net expense from other
real estate owned
|
109
|
|
320
|
|
Marketing and business
promotion
|
5,998
|
|
5,564
|
|
Deposit
insurance
|
1,856
|
|
1,683
|
|
Other
|
30,171
|
|
26,290
|
|
Total noninterest
expense
|
165,955
|
|
149,141
|
|
Income before
income taxes
|
118,695
|
|
99,347
|
|
Income tax
expense
|
25,606
|
|
32,405
|
|
Net
income
|
$
93,089
|
|
$
66,942
|
|
Per Common
Share Data:
|
|
|
|
|
Net
income-basic
|
$
2.85
|
|
$
2.11
|
|
Net
income-diluted
|
2.78
|
|
2.06
|
|
Cash dividends
declared
|
0.72
|
|
0.59
|
|
Common shares
outstanding
|
32,749,690
|
|
31,863,063
|
|
Average common
shares outstanding -
|
|
|
|
|
Basic
|
32,678,310
|
|
31,792,270
|
|
Diluted
|
33,430,761
|
|
32,534,219
|
|
Performance
Ratios:
|
|
|
|
|
Return on
average assets
|
1.64
|
%
|
1.26
|
%
|
Return on
average stockholders' equity
|
14.62
|
|
12.06
|
|
Net interest
margin
|
3.68
|
|
3.42
|
|
Efficiency
ratio
|
57.84
|
|
58.79
|
|
BancFirst Corporation
|
Summary Financial
Information
|
(Dollars in
thousands, except per share and share data -
Unaudited)
|
|
|
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
2017
|
|
|
3rd
Qtr
|
|
2nd
Qtr
|
|
1st
Qtr
|
|
4th
Qtr
|
|
3rd
Qtr
|
|
Balance
Sheet Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
7,602,438
|
|
$
7,622,963
|
|
$
7,615,642
|
|
$
7,253,156
|
|
$
7,132,168
|
|
Interest-bearing deposits with banks
|
1,607,157
|
|
1,579,577
|
|
1,590,240
|
|
1,541,771
|
|
1,530,928
|
|
Securities
|
477,080
|
|
462,871
|
|
493,101
|
|
469,995
|
|
450,009
|
|
Total
loans
|
4,952,267
|
|
5,017,071
|
|
4,990,681
|
|
4,728,168
|
|
4,658,525
|
|
Allowance for
loan losses
|
(51,875)
|
|
(52,200)
|
|
(51,550)
|
|
(51,666)
|
|
(51,255)
|
|
Deposits
|
6,643,131
|
|
6,692,174
|
|
6,713,052
|
|
6,415,045
|
|
6,302,046
|
|
Stockholders'
equity
|
884,801
|
|
862,012
|
|
838,096
|
|
775,629
|
|
764,414
|
|
Book value per
common share
|
27.02
|
|
26.34
|
|
25.62
|
|
24.32
|
|
23.99
|
|
Tangible book
value per common share (non-GAAP)(1)
|
24.06
|
|
23.35
|
|
22.61
|
|
22.28
|
|
21.93
|
|
Balance
Sheet Ratios:
|
|
|
|
|
|
|
|
|
|
|
Average loans
to deposits
|
74.76
|
%
|
74.38
|
%
|
75.42
|
%
|
73.63
|
%
|
73.59
|
%
|
Average earning
assets to total assets
|
93.04
|
|
93.11
|
|
93.14
|
|
93.36
|
|
93.37
|
|
Average
stockholders' equity to average assets
|
11.23
|
|
11.23
|
|
10.95
|
|
10.78
|
|
10.74
|
|
Asset Quality
Data:
|
|
|
|
|
|
|
|
|
|
|
Past due
loans
|
$
4,073
|
|
$
2,916
|
|
$
3,900
|
|
$
2,893
|
|
$
2,122
|
|
Nonaccrual
loans
|
26,880
|
|
29,936
|
|
31,849
|
|
31,943
|
|
27,665
|
|
Restructured
loans
|
13,557
|
|
14,527
|
|
12,945
|
|
4,720
|
|
3,603
|
|
Total
nonperforming and restructured loans
|
44,510
|
|
47,379
|
|
48,694
|
|
39,556
|
|
33,390
|
|
Other real
estate owned and repossessed assets
|
7,072
|
|
3,847
|
|
3,676
|
|
4,424
|
|
4,099
|
|
Total
nonperforming and restructured assets
|
51,582
|
|
51,226
|
|
52,370
|
|
43,980
|
|
37,489
|
|
Nonperforming
and restructured loans to total loans
|
0.90
|
%
|
0.94
|
%
|
0.98
|
%
|
0.84
|
%
|
0.72
|
%
|
Nonperforming
and restructured assets to total assets
|
0.68
|
|
0.67
|
|
0.69
|
|
0.61
|
|
0.53
|
|
Allowance to
total loans
|
1.05
|
|
1.04
|
|
1.03
|
|
1.09
|
|
1.10
|
|
Allowance to
nonperforming and restructured loans
|
116.55
|
|
110.18
|
|
105.87
|
|
130.62
|
|
153.50
|
|
Net charge-offs
to average loans
|
0.02
|
|
0.01
|
|
0.01
|
|
0.06
|
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Tangible Book Value Per Common Share (non-GAAP)(2):
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
$
884,801
|
|
$
862,012
|
|
$
838,096
|
|
$
775,629
|
|
$
764,414
|
|
Less
goodwill
|
79,733
|
|
79,733
|
|
79,796
|
|
54,042
|
|
54,042
|
|
Less intangible
assets, net
|
17,257
|
|
18,012
|
|
18,782
|
|
11,082
|
|
11,645
|
|
Tangible
stockholders' equity (non-GAAP)
|
$
787,811
|
|
$
764,267
|
|
$
739,518
|
|
$
710,505
|
|
$
698,727
|
|
Common shares
outstanding
|
32,749,690
|
|
32,731,215
|
|
32,707,166
|
|
31,894,563
|
|
31,863,063
|
|
Tangible book
value per common share (non-GAAP)
|
$
24.06
|
|
$
23.35
|
|
$
22.61
|
|
$
22.28
|
|
$
21.93
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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,
2018
|
|
September 30,
2018
|
|
|
|
|
Interest
|
|
Average
|
|
|
|
Interest
|
|
Average
|
|
|
Average
|
|
Income/
|
|
Yield/
|
|
Average
|
|
Income/
|
|
Yield/
|
|
|
Balance
|
|
Expense
|
|
Rate
|
|
Balance
|
|
Expense
|
|
Rate
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
4,973,580
|
|
$
66,852
|
|
5.33
|
%
|
$
4,975,621
|
|
$
195,657
|
|
5.26
|
%
|
Securities –
taxable
|
432,935
|
|
2,246
|
|
2.06
|
|
437,379
|
|
6,100
|
|
1.86
|
|
Securities –
tax exempt
|
23,469
|
|
184
|
|
3.10
|
|
26,969
|
|
606
|
|
3.00
|
|
Interest
bearing deposits with banks
|
1,657,460
|
|
8,254
|
|
1.98
|
|
1,609,596
|
|
21,560
|
|
1.79
|
|
Total earning
assets
|
7,087,444
|
|
77,536
|
|
4.34
|
|
7,049,565
|
|
223,923
|
|
4.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonearning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due
from banks
|
182,449
|
|
|
|
|
|
184,170
|
|
|
|
|
|
Interest
receivable and other assets
|
414,096
|
|
|
|
|
|
395,607
|
|
|
|
|
|
Allowance for
loan losses
|
(52,293)
|
|
|
|
|
|
(52,190)
|
|
|
|
|
|
Total nonearning
assets
|
544,252
|
|
|
|
|
|
527,587
|
|
|
|
|
|
Total assets
|
$
7,631,696
|
|
|
|
|
|
$
7,577,152
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
Interest bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction
deposits
|
$
775,122
|
|
$
744
|
|
0.38
|
%
|
$
801,750
|
|
$
1,740
|
|
0.29
|
%
|
Savings
deposits
|
2,553,401
|
|
8,010
|
|
1.24
|
|
2,502,746
|
|
20,305
|
|
1.08
|
|
Time
deposits
|
736,060
|
|
2,417
|
|
1.30
|
|
756,041
|
|
6,105
|
|
1.08
|
|
Short-term
borrowings
|
8,960
|
|
42
|
|
1.85
|
|
6,332
|
|
85
|
|
1.79
|
|
Junior
subordinated debentures
|
31,959
|
|
547
|
|
6.80
|
|
31,959
|
|
1,626
|
|
6.80
|
|
Total interest bearing
liabilities
|
4,105,502
|
|
11,760
|
|
1.14
|
|
4,098,828
|
|
29,861
|
|
0.97
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest free
funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
bearing deposits
|
2,610,935
|
|
|
|
|
|
2,594,714
|
|
|
|
|
|
Interest
payable and other liabilities
|
37,051
|
|
|
|
|
|
32,518
|
|
|
|
|
|
Stockholders'
equity
|
878,208
|
|
|
|
|
|
851,092
|
|
|
|
|
|
Total interest free
funds
|
3,526,194
|
|
|
|
|
|
3,478,324
|
|
|
|
|
|
Total liabilities
and stockholders' equity
|
$
7,631,696
|
|
|
|
|
|
$
7,577,152
|
|
|
|
|
|
Net interest
income
|
|
|
$
65,776
|
|
|
|
|
|
$
194,062
|
|
|
|
Net interest
spread
|
|
|
|
|
3.20
|
%
|
|
|
|
|
3.28
|
%
|
Effect of interest
free funds
|
|
|
|
|
0.48
|
%
|
|
|
|
|
0.40
|
%
|
Net interest
margin
|
|
|
|
|
3.68
|
%
|
|
|
|
|
3.68
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/bancfirst-corporation-reports-third-quarter-earnings-300733848.html
SOURCE BancFirst