Le Lézard
Classified in: Business
Subject: ERN

BancFirst Corporation Reports Fourth Quarter Earnings


OKLAHOMA CITY, Jan. 18, 2018 /PRNewswire/ -- BancFirst Corporation (NASDAQ GS:BANF) reported net income of $19.5 million, or $0.59 diluted earnings per share, for the fourth quarter of 2017 compared to net income of $18.6 million, or $0.58 diluted earnings per share, for the fourth quarter of 2016. Due to the signing of the Tax Cuts and Jobs Act, a write down on deferred tax assets of $4.3 million decreased earnings per share by approximately 14 cents. Net income for the fourth quarter also included a gain of $2.3 million, net of income tax and fees, from the sale of an investment by Council Oak Investment Corporation, a wholly-owned subsidiary of BancFirst, which added approximately 7 cents per share. Net income for the year ended December 31, 2017 was $86.4 million, or $2.65 per share, compared to $70.7 million, or $2.22 per share, for 2016.  Net income for the year ended December 31, 2017 also 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. Net income for the year ended December 31, 2016 included a gain on the sale of other real estate owned totaling $1.2 million.

The Company's net interest income for the fourth quarter of 2017 increased to $58.7 million compared to $51.6 million for the fourth quarter of 2016. The net interest margin for the quarter was 3.48% compared to 3.19% a year ago. Internal loan growth and the increase in the Fed Fund rate of 75 basis points during 2017 contributed to the higher net interest income and margin in 2017.  The provision for loan losses for the fourth quarter of 2017 increased to $3.3 million compared to $1.7 million a year ago. The provision for loan losses for the fourth quarter of 2017 was primarily driven by downgrades of commercial loans, which resulted in approximately $2.8 million in provision, and by loan growth, which resulted in approximately $550,000 in provision.  Net charge-offs increased slightly to 0.06% of average loans for the fourth quarter of 2017 compared to 0.02% for the fourth quarter of 2016, primarily due to one commercial loan.  Noninterest income for the quarter totaled $32.8 million, compared to $27.4 million last year. The increase in noninterest income was primarily due to the investment gain described above.  Noninterest expense for the quarter totaled $51.3 million compared to $48.2 million last year. The increase in noninterest expense was primarily due to salary increases in 2017 and compensation expense related to the sale of the Council Oak investment. The Company's effective tax rate was 47.2% compared to 36.1% for the fourth quarter of 2016. The increase in 2017 was due to the write down on deferred tax assets due to the signing of the Tax Cuts and Jobs Act.

For the year ended 2017, the Company's net interest income was $227.1 million compared to $203.8 million for 2016. The net interest margin for the year increased to 3.44% compared to 3.25% for the previous year. Internal loan growth and the increase in the Fed Fund rate of 75 basis points during 2017 contributed to the higher net interest income and margin in 2017. The provision for loan losses for 2017 was $8.5 million compared to $11.5 million a year ago. The Company reported slightly higher net charge-offs to average loans of 0.12% for 2017 compared to 0.10% for 2016. Noninterest income for 2017 totaled $118.1 million compared to $107.0 million for 2016. Noninterest expense was $200.4 million compared to $191.4 million for 2016. The Company's effective tax rate was 36.6% compared to 34.5% for 2016.

At December 31, 2017, the Company's total assets were $7.3 billion, $234.2 million above the December 31, 2016 total. Loans totaled $4.7 billion, an increase of $69.6 million over September 30, 2017, and an increase of $318.6 million over December 31, 2016.  Deposits were $6.4 billion at December 31, 2017, up $113.0 million from last quarter, and $167.0 million above the December 31, 2016 total. The Company's total stockholders' equity was $775.6 million, an increase of $64.5 million over December 31, 2016.

Asset quality remained strong during the fourth quarter of 2017.  Nonperforming and restructured assets were 0.61% of total assets at December 31, 2017 compared to 0.53% at September 30, 2017, and 0.56% at December 31, 2016. The allowance for loan losses to total loans was 1.09% at December 31, 2017, 1.10% at September 30, 2017, and 1.10% at December 31, 2016. The allowance to nonperforming and restructured loans was 130.6% compared to 153.5% at September 30, 2017, and 137.3% at year-end 2016.

Executive Chairman David Rainbolt commented, "Based on our 2017 earnings, the reduction in the federal tax rate to 21% would have added approximately $14 million to net income. Going forward, we will be raising our minimum wage and increasing the budgeted contribution to our Employee Stock Ownership Plan."

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 $373 million. The Company exchanged a combination of cash and stock for these transactions.

BancFirst Corporation is an Oklahoma based financial services holding company.  The Company's principal subsidiary bank, BancFirst, is Oklahoma's largest state-chartered bank with 109 banking locations serving 59 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)

2017

2017

2017

2017

2016

4th Qtr 


3rd Qtr 


2nd Qtr 


1st Qtr 


4th Qtr 


Condensed Income Statements: 











Net interest income 

$               58,699

$               57,233

$               56,439

$               54,768

$               51,553

Provision for loan losses 

3,323

3,276

1,841

72

1,672

Non-interest income:









Trust revenue

3,073

3,083

2,894

2,952

2,878

Service charges on deposits

16,693

16,633

16,448

15,778

16,005

Securities transactions

4,412

(22)

(330)

---

52

Income from sales of loans

741

732

816

632

705

Insurance commissions

3,917

4,603

3,728

4,563

3,797

Cash management

2,798

2,804

2,799

2,754

2,713

Other

1,199

1,336

1,628

1,406

1,281

Total noninterest income 

32,833

29,169

27,983

28,085

27,431











Non-interest expense:









Salaries and employee benefits

31,477

31,471

31,547

30,654

29,706

Occupancy expense, net

3,327

3,298

2,992

2,974

3,198

Depreciation

2,298

2,493

2,392

2,420

2,461

Amortization of intangible assets

547

547

547

547

548

Data processing services

1,252

1,110

1,097

1,195

1,229

Net expense from other real estate owned

101

68

202

50

197

Marketing and business promotion

1,825

1,790

1,559

2,215

1,978

Deposit insurance

578

553

542

588

569

Other

9,846

9,270

8,075

8,945

8,303

Total noninterest expense 

51,251

50,600

48,953

49,588

48,189

Income before income taxes 

36,958

32,526

33,628

33,193

29,123

Income tax expense 

17,461

10,816

10,446

11,143

10,503

Net income 

$               19,497

$               21,710

$               23,182

$               22,050

$               18,620

Per Common Share Data: 











Net income-basic 

$                   0.61

$                   0.68

$                   0.73

$                   0.70

$                   0.60

Net income-diluted 

0.59

0.67

0.71

0.68

0.58

Cash dividends declared

0.21

0.21

0.19

0.19

0.19

Common shares outstanding 

31,894,563

31,863,063

31,818,438

31,782,552

31,621,870

Average common shares outstanding -











   Basic

31,876,784

31,838,392

31,807,610

31,729,614

31,487,540

   Diluted

32,652,265

32,592,277

32,523,376

32,475,996

32,092,122

Performance Ratios: 











Return on average assets

1.07

%

1.22

%

1.31

%

1.27

%

1.07

%

Return on average equity

9.97

11.34

12.52

12.37

10.44

Net interest margin 

3.48

3.46

3.43

3.39

3.19

Efficiency ratio 

55.99

58.56

57.99

59.85

61.01











 

BancFirst Corporation

Summary Financial Information

(Dollars in thousands, except per share and share data - Unaudited, except where noted*)

Twelve months ended
December 31,

2017

2016*

Condensed Income Statements: 





Net interest income 

$             227,139

$             203,828

Provision for loan losses 

8,512

11,519

Non-interest income:



Trust revenue

12,002

10,630

Service charges on deposits

65,552

62,233

Securities transactions

4,060

(59)

Income from sales of loans

2,921

2,825

Insurance commissions

16,811

15,559

Cash management

11,155

10,616

Other

5,569

5,228

Total noninterest income 

118,070

107,032





Non-interest expense:



Salaries and employee benefits

125,149

119,662

Occupancy expense, net

12,591

12,313

Depreciation

9,603

10,114

Amortization of intangible assets

2,188

2,269

Data processing services

4,654

4,796

Net expense (income) from other real estate owned

421

(747)

Marketing and business promotion

7,389

7,236

Deposit insurance

2,261

2,904

Other

36,136

32,857

Total noninterest expense 

200,392

191,404

Income before income taxes 

136,305

107,937

Income tax expense 

49,866

37,263

Net income 

$               86,439

$               70,674

Per Common Share Data: 





Net income-basic 

$                   2.72

$                   2.27

Net income-diluted 

2.65

2.22

Cash dividends declared

0.80

0.74

Common shares outstanding 

31,894,563

31,621,870

Average common shares outstanding -





   Basic

31,813,572

31,230,340

   Diluted

32,568,105

31,822,524

Performance Ratios: 





Return on average assets

1.22

%

1.04

%

Return on average stockholders' equity

11.52

10.32

Net interest margin 

3.44

3.25

Efficiency ratio 

58.05

61.57


 

BancFirst Corporation

Summary Financial Information

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

2017

2017

2017

2017

2016

4th Qtr 


3rd Qtr 


2nd Qtr 


1st Qtr

4th Qtr 


Balance Sheet Data:




















Total assets

$  7,253,156

$  7,132,168

$  7,046,589

$    7,189,637

$    7,018,952

Interest-bearing deposits with banks

1,541,771

1,530,928

1,533,147

1,857,961

1,666,540

Securities

469,995

450,009

451,402

463,250

469,833

Total loans

4,728,168

4,658,525

4,587,454

4,398,529

4,409,550

Allowance for loan losses

(51,666)

(51,255)

(49,005)

(47,921)

(48,693)

Deposits

6,415,045

6,302,046

6,235,682

6,394,627

6,248,057

Stockholders' equity

775,629

764,414

748,462

729,873

711,094

Book value per common share

24.32

23.99

23.53

22.97

22.49

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

22.28

21.93

21.44

20.86

20.36

Balance Sheet Ratios:











Average loans to deposits

73.63

%

73.59

%

71.47

%

70.13

%

70.98

%

Average earning assets to total assets

93.36

93.37

93.44

93.45

93.30

Average stockholders' equity to average assets

10.78

10.74

10.46

10.25

10.26

Asset Quality Data:









Past due loans

$         2,893

$         2,122

$        2,217

$           2,024

$           1,962

Nonaccrual loans

31,943

27,665

19,607

23,694

31,798

Restructured loans

4,720

3,603

3,561

2,203

1,713

Total nonperforming and restructured loans

39,556

33,390

25,385

27,921

35,473

Other real estate owned and repossessed assets

4,424

4,099

4,211

4,404

3,866

Total nonperforming and restructured assets

43,980

37,489

29,596

32,325

39,339

Nonperforming and restructured loans to total loans

0.84

%

0.72

%

0.55

%

0.63

%

0.80

%

Nonperforming and restructured assets to total assets

0.61

0.53

0.42

0.45

0.56

Allowance to total loans

1.09

1.10

1.07

1.09

1.10

Allowance to nonperforming and restructured loans

130.62

153.50

193.05

171.63

137.27

Net charge-offs to average loans

0.06

0.02

0.02

0.02

0.02











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









Stockholders' equity

$     775,629

$     764,414

$      748,462

$       729,873

$         711,094

Less goodwill

54,042

54,042

54,042

54,042

54,042

Less intangible assets, net

11,082

11,645

12,203

12,768

13,330

Tangible stockholders' equity (non-GAAP)

$     710,505

$     698,727

$     682,217

$      663,063

$         643,722

Common shares outstanding

31,894,563

31,863,063

31,818,438

31,782,552

31,621,870

Tangible book value per common share (non-GAAP)

$         22.28

$         21.93

$          21.44

$          20.86

$             20.36











(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, 2017

December 31, 2017



Interest

Average


Interest

Average

Average

Income/

Yield/

Average

Income/

Yield/

Balance

Expense

Rate

Balance

Expense

Rate

ASSETS











Earning assets:











Loans

$           4,682,321

$           57,769

4.89

%

$        4,547,207

$         222,900

4.90

%

Securities ? taxable

418,655

1,741

1.65

425,372

7,171

1.69

Securities ? tax exempt

31,324

285

3.60

31,909

1,134

3.55

Interest bearing deposits with banks

1,588,795

5,294

1.32

1,635,248

18,138

1.11

Total earning assets

6,721,095

65,089

3.84

6,639,736

249,343

3.76













Nonearning assets:











Cash and due from banks

180,484




176,364




Interest receivable and other assets

348,422




341,549




Allowance for loan losses

(51,122)




(49,269)




Total nonearning assets

477,784




468,644




Total assets

$            7,198,879




$        7,108,380

















LIABILITIES AND STOCKHOLDERS' EQUITY











Interest bearing liabilities:











Transaction deposits

$           755,860

$               364

0.19

%

$           775,851

$             1,160

0.15

%

Savings deposits

2,404,099

3,697

0.61

2,311,512

12,251

0.53

Time deposits

661,109

1,457

0.87

674,132

5,379

0.80

Short-term borrowings

1,390

4

1.16

1,776

17

0.97

Junior subordinated debentures

31,959

533

6.62

31,959

2,122

6.64

Total interest bearing liabilities

3,854,417

6,055

0.62

3,795,230

20,929

0.55













Interest free funds:











Noninterest bearing deposits

2,538,218




2,534,876




Interest payable and other liabilities

30,355




27,696




Stockholders' equity

775,889




750,578




Total interest free  funds

3,344,462




3,313,150




Total liabilities and stockholders' equity

$            7,198,879




$        7,108,380




Net interest income

$           59,034




$         228,414


Net interest spread



3.22

%



3.20

%

Effect of interest free funds



0.26

%



0.24

%

Net interest margin



3.48

%



3.44

%

 

SOURCE BancFirst


These press releases may also interest you

at 02:30
Together Selects nCino to Revolutionise its Lending Business
nCino, Inc. , a pioneer in cloud banking for the global financial services industry, today announced that Together, one of the UK's leading property lenders, has selected nCino's Cloud Banking Platform to revolutionise and future-proof its business....

at 02:26
Invest in Bogota showcases infrastructure projects at Colombia Sustainable Roadshow 2024
The Colombia Sustainable Investment Roadshow 2024 (CIR) is the foremost event overseas, championing Colombia as a prime investment destination. Spearheaded by the Colombian Ministry of Commerce, Industry, and Tourism, and ProColombia, this event has...

at 02:22
Hexagon acquires Xwatch to strengthen its construction safety portfolio
Hexagon, the global leader in digital reality solutions, combining sensor, software and autonomous technologies, today announced the acquisition of Xwatch Safety Solutions. Xwatch provides machine control hardware and software technologies designed...

at 02:20
Nidec Announces Financial Results for Fiscal Year Ended March 31, 2024
Nidec Corporation (TOKYO: 6594) today announced its consolidated financial results under the International Financial Reporting Standards ("IFRS") for the fiscal year ended March 31, 2024. The highlights are as follows: FY23 consolidated net...

at 02:00
UPL CORP ANNOUNCES COMPLETION OF ACQUISITION OF CORTEVA'S SOLO MANCOZEB BUSINESS
UPL Corporation Ltd. (UPL Corp), a global provider of holistic and sustainable agricultural solutions, announces that it has completed the acquisition of Corteva Agriscience's solo mancozeb...

at 02:00
HOUSE OF ROSE PROFESSIONAL ANNOUNCES DUBAI, UAE AS EXCLUSIVE LOCATION FOR 2024 MIDDLE EAST & AFRICA EDITION OF BREAK THE CEILING TOUCH THE SKY®
House of Rose Professional Pte. Ltd (HORP) today announced that its 2024 Middle East & Africa Edition of Break the ceiling touch the sky® (BTCTTS) - the success and leadership summit for women will be held LIVE in Dubai, UAE on Sept 9, 2024. The...

More news about Business...


News published on and distributed by: