OKLAHOMA CITY, July 18, 2019 /PRNewswire/ — BancFirst Corporation (NASDAQ GS:BANF) reported net income of $34.2 million, or $1.02 diluted earnings per share, for the second quarter of 2019 compared to net income of $30.6 million, or $0.91 diluted earnings per share, for the second quarter of 2018.   Net income for the six months ended June 30, 2019 was $66.0 million, or $1.98 per share, compared to $60.2 million, or $1.80 per share, for the first half of 2018.  On January 11, 2018 the Company completed the acquisitions of two Oklahoma banking corporations. Consequently, the first half of 2018 included one-time acquisition related expenses of approximately $2.2 million, which reduced diluted earnings per share by approximately 5 cents in the first quarter. 

The Company’s net interest income for the second quarter of 2019 increased to $68.8 million compared to $64.9 million for the second quarter of 2018. The net interest margin for the quarter was 3.89% compared to 3.70% a year ago. The increase in margin was primarily due to the increase in the federal funds rate throughout 2018. The provision for loan losses for the second quarter of 2019 was $2.4 million compared to $1.2 million a year ago.  Net charge-offs for the second quarter of 2019 and 2018 were 0.01% of average loans.  Noninterest income for the quarter totaled $34.1 million, compared to $30.4 million last year. The increase in noninterest income was primarily due to growth in debit card usage fees, sweep fees and equity security gains of $821,000. Noninterest expense for the quarter totaled $56.6 million compared to $54.3 million last year. The increase in noninterest expense was primarily due to salary increases in 2019. The Company’s effective tax rate was 22.0% compared to 23.2% for the second quarter of 2018. The decrease in the effective tax rate compared to the second quarter of 2018 was due to the increase in tax credits during the quarter.

At June 30, 2019, the Company’s total assets were $7.6 billion, an increase of $67.8 million from December 31, 2018. Securities of $425.2 million were down $347.0 million from December 31, 2018. Loans totaled $5.1 billion, an increase of $121.2 million from December 31, 2018. Deposits totaled $6.6 billion, an increase of $8.1 million from the December 31, 2018 total. The Company’s total stockholders’ equity was $956.4 million, an increase of $53.6 million over December 31, 2018.

Asset quality remained strong during the second quarter of 2019.  Nonperforming and restructured assets represented 0.58% of total assets at June 30, 2019, virtually unchanged from the prior year. The allowance to total loans was 1.08% up slightly from 1.03% at year-end 2018. The allowance to nonperforming and restructured loans was 148.35% compared to 136.29% at year-end 2018.

BancFirst Corporation CEO David Harlow commented, «The Company reported a good quarter and first half of 2019. Improvement in net interest income, net interest margin, non-interest income and continued strong asset quality were the primary drivers.»

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)

2019

2019

2018

2018

2018

2nd Qtr 

1st Qtr 

4th Qtr 

3rd Qtr 

2nd Qtr 

 Condensed Income Statements: 

 Net interest income 

$               68,792

$               66,903

$               66,888

$               65,673

$               64,880

 Provision for loan losses 

2,433

1,684

1,516

747

1,225

 Non-interest income:

Trust revenue

3,250

3,177

3,023

3,281

3,396

Service charges on deposits

19,114

17,663

18,554

18,103

17,537

Securities transactions

821

10

(64)

115

Income from sales of loans

868

698

649

800

802

Insurance commissions

4,420

5,265

4,593

5,207

3,927

Cash management

4,402

3,776

3,338

3,383

3,381

Other

1,202

1,422

1,684

2,091

1,279

Total noninterest income 

34,077

32,001

31,851

32,801

30,437

 Non-interest expense:

Salaries and employee benefits

36,124

36,171

35,530

35,051

34,776

Occupancy expense, net

2,953

2,627

3,307

3,386

3,396

Depreciation

3,015

2,985

2,965

2,733

2,429

Amortization of intangible assets

758

759

777

740

759

Data processing services

1,262

1,480

1,140

1,418

1,195

Net expense from other real estate owned

97

(484)

130

64

19

Marketing and business promotion

1,919

2,261

2,030

1,997

1,649

Deposit insurance

544

533

571

597

640

Other

9,936

9,874

9,716

9,823

9,393

Total noninterest expense 

56,608

56,206

56,166

55,809

54,256

 Income before income taxes 

43,828

41,014

41,057

41,918

39,836

 Income tax expense 

9,661

9,177

8,332

9,035

9,250

 Net income 

$               34,167

$               31,837

$               32,725

$               32,883

$               30,586

 Per Common Share Data: 

 Net income-basic 

$                   1.04

$                   0.98

$                   1.00

$                   1.01

$                   0.93

 Net income-diluted 

1.02

0.96

0.98

0.98

0.91

 Cash dividends declared

0.30

0.30

0.30

0.30

0.21

 Common shares outstanding 

32,639,588

32,617,788

32,603,926

32,749,690

32,731,215

 Average common shares outstanding –

   Basic

32,629,146

32,612,399

32,721,626

32,742,480

32,716,350

   Diluted

33,317,193

33,292,852

33,423,458

33,504,143

33,458,858

 Performance Ratios: 

 Return on average assets

1.78

%

1.69

%

1.70

%

1.71

%

1.62

%

 Return on average equity

14.54

14.08

14.48

14.86

14.41

 Net interest margin 

3.89

3.85

3.77

3.68

3.70

 Efficiency ratio 

55.03

56.83

56.88

56.67

56.92

 

BancFirst Corporation

Summary Financial Information

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

Six months ended

June 30,

2019

2018

 Condensed Income Statements: 

 Net interest income 

$             135,695

$             127,915

 Provision for loan losses 

4,117

1,539

 Non-interest income:

Trust revenue

6,427

6,525

Service charges on deposits

36,777

34,190

Securities transactions

821

101

Income from sales of loans

1,566

1,453

Insurance commissions

9,685

9,126

Cash management

8,178

6,402

Other

2,624

2,750

Total noninterest income 

66,078

60,547

 Non-interest expense:

Salaries and employee benefits

72,295

68,966

Occupancy expense, net

5,580

6,798

Depreciation

6,000

4,839

Amortization of intangible assets

1,517

1,492

Data processing services

2,742

2,398

Net expense from other real estate owned

(387)

45

Marketing and business promotion

4,180

4,001

Deposit insurance

1,077

1,259

Other

19,810

20,348

Total noninterest expense 

112,814

110,146

 Income before income taxes 

84,842

76,777

 Income tax expense 

18,838

16,571

 Net income 

$               66,004

$               60,206

 Per Common Share Data: 

 Net income-basic 

$                   2.02

$                   1.84

 Net income-diluted 

1.98

1.80

 Cash dividends declared

0.60

0.42

 Common shares outstanding 

32,639,588

32,731,215

 Average common shares outstanding –

   Basic

32,620,819

32,645,693

   Diluted

33,306,429

33,390,263

 Performance Ratios: 

 Return on average assets

1.74

%

1.61

%

 Return on average stockholders’ equity

14.31

14.50

 Net interest margin 

3.87

3.68

 Efficiency ratio 

55.91

58.44

 

BancFirst Corporation

Summary Financial Information

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

2019

2019

2018

2018

2018

2nd Qtr

1st Qtr 

4th Qtr

3rd Qtr

2nd Qtr

 Balance Sheet Data:

 Total assets

$  7,642,021

$  7,709,000

$  7,574,258

$  7,602,438

$  7,622,963

 Interest-bearing deposits with banks

1,518,998

1,291,447

1,195,824

1,607,157

1,579,577

 Debt securities

425,154

724,872

772,132

477,080

462,871

 Total loans

5,105,302

5,050,221

4,984,150

4,952,267

5,017,071

 Allowance for loan losses

(55,108)

(52,915)

(51,389)

(51,875)

(52,200)

 Deposits

6,613,613

6,706,386

6,605,495

6,643,131

6,692,174

 Stockholders’ equity

956,380

927,927

902,789

884,801

862,012

 Book value per common share

29.30

28.45

27.69

27.02

26.34

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

26.40

25.52

24.74

24.06

23.35

 Balance Sheet Ratios:

 Average loans to deposits

76.07

%

75.34

%

74.24

%

74.76

%

74.38

%

 Average earning assets to total assets

92.43

92.42

92.48

93.04

93.11

 Average stockholders’ equity to average assets

12.25

12.01

11.76

11.23

11.23

Asset Quality Data:

 Past due loans

$         2,663

$         2,170

$         1,916

$         4,073

$         2,916

 Nonaccrual loans

17,998

21,594

22,603

26,880

29,936

 Restructured loans

16,486

14,552

13,188

13,557

14,527

 Total nonperforming and restructured loans

37,147

38,316

37,707

44,510

47,379

 Other real estate owned and repossessed assets

7,004

6,433

6,873

7,072

3,847

 Total nonperforming and restructured assets

44,151

44,749

44,580

51,582

51,226

 Nonperforming and restructured loans to total loans

0.73

%

0.76

%

0.76

%

0.90

%

0.94

%

 Nonperforming and restructured assets to total assets

0.58

0.58

0.59

0.68

0.67

 Allowance to total loans

1.08

1.05

1.03

1.05

1.04

 Allowance to nonperforming and restructured loans

148.35

138.10

136.29

116.55

110.18

 Net charge-offs to average loans

0.01

0.00

0.04

0.02

0.01

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

Stockholders’ equity

$     956,380

$     927,927

$     902,789

$       884,801

$       862,012

Less goodwill

79,749

79,749

79,749

79,733

79,733

Less intangible assets, net

14,936

15,701

16,470

17,257

18,012

Tangible stockholders’ equity (non-GAAP)

$     861,695

$     832,477

$     806,570

$       787,811

$       764,267

Common shares outstanding

32,639,588

32,617,788

32,603,926

32,749,690

32,731,215

 Tangible book value per common share (non-GAAP)

$         26.40

$         25.52

$         24.74

$           24.06

$           23.35

(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

Six Months Ended

June 30, 2019

June 30, 2019

Interest

Average

Interest

Average

Average

Income/

Yield/

Average

Income/

Yield/

Balance

Expense

Rate

Balance

Expense

Rate

ASSETS

Earning assets:

  Loans

$           5,082,637

$           71,142

5.61

%

$        5,048,164

$         140,016

5.59

%

  Securities – taxable

666,966

3,855

2.32

708,015

8,190

2.33

  Securities – tax exempt

20,215

150

2.97

20,850

309

2.99

  Interest bearing deposits with banks

1,339,375

8,135

2.44

1,306,396

15,885

2.45

     Total earning assets

7,109,193

83,282

4.70

7,083,425

164,400

4.68

Nonearning assets:

  Cash and due from banks

177,489

178,808

  Interest receivable and other assets

457,888

454,135

  Allowance for loan losses

(53,365)

(52,674)

     Total nonearning assets

582,012

580,269

     Total assets

$            7,691,205

$        7,663,694

LIABILITIES AND STOCKHOLDERS’ EQUITY

Interest bearing liabilities:

  Transaction deposits                      

$           738,742

$               659

0.36

%

$           746,205

$             1,321

0.36

%

  Savings deposits

2,637,248

10,424

1.59

2,631,540

20,725

1.59

  Time deposits

678,680

2,719

1.61

686,627

5,293

1.55

  Short-term borrowings

1,859

12

2.67

1,948

22

2.30

  Junior subordinated debentures

26,804

492

7.37

26,804

983

7.39

     Total interest bearing liabilities

4,083,333

14,306

1.41

4,093,124

28,344

1.40

Interest free funds:

  Noninterest bearing deposits

2,626,877

2,603,725

  Interest payable and other liabilities

38,459

37,010

  Stockholders’ equity

942,536

929,835

     Total interest free  funds

3,607,872

3,570,570

     Total liabilities and stockholders’ equity

$            7,691,205

$        7,663,694

Net interest income

$           68,976

$         136,056

Net interest spread

3.29

%

3.28

%

Effect of interest free funds

0.60

%

0.59

%

Net interest margin

3.89

%

3.87

%

 

Cision View original content:http://www.prnewswire.com/news-releases/bancfirst-corporation-reports-second-quarter-earnings-300887561.html

SOURCE BancFirst