Le Lézard
Classified in: Business
Subject: ERN

BancFirst Corporation Reports First Quarter Earnings


OKLAHOMA CITY, April 19, 2018 /PRNewswire/ -- BancFirst Corporation (NASDAQ GS:BANF) reported net income of $29.6 million, or $0.89 diluted earnings per share, for the first quarter of 2018 compared to net income of $22.1 million, or $0.68 diluted earnings per share, for the first quarter of 2017.  On January 11, 2018 the Company completed the acquisitions of two Oklahoma banking corporations. Consequently, the first quarter of 2018 included one-time acquisition related expenses of approximately $2.2 million, which reduced diluted earnings per share by approximately 5 cents.  Net income for the first quarter of 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 first quarter of 2018 increased to $63.0 million compared to $54.8 million for the first quarter of 2017. The net interest margin for the quarter was 3.66% compared to 3.39% a year ago. The increase in margin was primarily due to the increase in the federal funds rate throughout 2017 and the first quarter of 2018 and the two acquisitions. The provision for loan losses for the first quarter of 2018 was $314,000 compared to $72,000 a year ago.  Net charge-offs for the quarter were 0.01% of average loans, compared to 0.02% for the first quarter of 2017.  Noninterest income for the quarter totaled $30.1 million, compared to $28.1 million last year. Noninterest expense for the quarter totaled $55.9 million compared to $49.6 million last year. The increase in noninterest expense was due to salary increases in 2018 and the two acquisitions. The Company's effective tax rate was 19.8% compared to 33.6% for the first quarter of 2017 and added approximately 15 cents to first quarter diluted earnings per share. The decrease in the effective tax rate was due to the change in tax rates from the Tax Cuts and Jobs Act and exercising of stock options during the quarter. 

At March 31, 2018, the Company's total assets were $7.6 billion, an increase of $362.5 million from December 31, 2017. The increase in total assets was primarily related to the acquisitions during the quarter. Securities of $493.1 million were up slightly from December 31, 2017. Loans totaled $5.0 billion, an increase of $262.5 million from December 31, 2017. Excluding acquired loans of $307.1 million, loans were slightly down from December 31, 2017. Deposits totaled $6.7 billion, an increase of $298.0 million from the December 31, 2017 total, of which $292.8 million was related to the acquisitions. The Company's total stockholders' equity was $838.1 million, an increase of $62.5 million over December 31, 2017.

Asset quality remained strong during the first quarter of 2018.  Nonperforming and restructured assets were 0.69% of total assets at March 31, 2018 compared to 0.61% at December 31, 2017. The allowance to total loans was 1.03% compared to 1.09% at year-end 2017. The allowance to nonperforming and restructured loans was 105.9% 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 $373 million. The Company exchanged a combination of cash and stock for these transactions.

Executive Chairman David Rainbolt commented, "The confluence of reduced corporate income tax, increasing interest rates, a stable Oklahoma economy, and quality acquisitions resulted in a strong quarter for us."

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 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


2017


2017


2017


2017



1st Qtr 


4th Qtr 


3rd Qtr 


2nd Qtr 


1st Qtr 


Condensed Income Statements: 











Net interest income 

$     63,035


$     58,699


$      57,233


$     56,439


$     54,768


Provision for loan losses 

314


3,323


3,276


1,841


72


Non-interest income:











Trust revenue

3,129


3,073


3,083


2,894


2,952


Service charges on deposits

16,653


16,693


16,633


16,448


15,778


Securities transactions

(14)


4,412


(22)


(330)


---


Income from sales of loans

651


741


732


816


632


Insurance commissions

5,199


3,917


4,603


3,728


4,563


Cash management

3,021


2,798


2,804


2,799


2,754


Other

1,471


1,199


1,336


1,628


1,406


Total noninterest income 

30,110


32,833


29,169


27,983


28,085













Non-interest expense:











Salaries and employee benefits

34,190


31,477


31,471


31,547


30,654


Occupancy expense, net

3,402


3,327


3,298


2,992


2,974


Depreciation

2,410


2,298


2,493


2,392


2,420


Amortization of intangible assets

733


547


547


547


547


Data processing services

1,203


1,252


1,110


1,097


1,195


Net expense from other real estate owned

26


101


68


202


50


Marketing and business promotion

2,352


1,825


1,790


1,559


2,215


Deposit insurance

619


578


553


542


588


Other

10,955


9,846


9,270


8,075


8,945


Total noninterest expense 

55,890


51,251


50,600


48,953


49,588


Income before income taxes 

36,941


36,958


32,526


33,628


33,193


Income tax expense 

7,321


17,461


10,816


10,446


11,143


Net income 

$     29,620


$     19,497


$      21,710


$     23,182


$     22,050


Per Common Share Data: 











Net income-basic 

$         0.91


$         0.61


$          0.68


$         0.73


$         0.70


Net income-diluted 

0.89


0.59


0.67


0.71


0.68


Cash dividends declared

0.21


0.21


0.21


0.19


0.19


Common shares outstanding 

32,707,166


31,894,563


31,863,063


31,818,438


31,782,552


Average common shares outstanding -











   Basic

32,574,251


31,876,784


31,838,392


31,807,610


31,729,614


   Diluted

33,317,744


32,652,265


32,592,277


32,523,376


32,475,996


Performance Ratios: 











Return on average assets

1.60

%

1.07

%

1.22

%

1.31

%

1.27

%

Return on average equity

14.60


9.97


11.34


12.52


12.37


Net interest margin 

3.66


3.48


3.46


3.43


3.39


Efficiency ratio 

60.00


55.99


58.56


57.99


59.85



 

BancFirst Corporation

Summary Financial Information

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




2018


2017


2017


2017


2017



1st Qtr


4th Qtr


3rd Qtr


2nd Qtr


1st Qtr


Balance Sheet Data:






















Total assets

$  7,615,642


$  7,253,156


$  7,132,168


$  7,046,589


$  7,189,637


Interest-bearing deposits with banks

1,590,240


1,541,771


1,530,928


1,533,147


1,857,961


Securities

493,101


469,995


450,009


451,402


463,250


Total loans

4,990,650


4,728,168


4,658,525


4,587,454


4,398,529


Allowance for loan losses

(51,550)


(51,666)


(51,255)


(49,005)


(47,921)


Deposits

6,713,052


6,415,045


6,302,046


6,235,682


6,394,627


Stockholders' equity

838,096


775,629


764,414


748,462


729,873


Book value per common share

25.62


24.32


23.99


23.53


22.97


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

22.61


22.28


21.93


21.44


20.86


Balance Sheet Ratios:











Average loans to deposits

75.42

%

73.63

%

73.59

%

71.47

%

70.13

%

Average earning assets to total assets

93.14


93.36


93.37


93.44


93.45


Average stockholders' equity to average assets

10.95


10.78


10.74


10.46


10.25


Asset Quality Data:











Past due loans

$         3,900


$         2,893


$         2,122


$        2,217


$         2,024


Nonaccrual loans

31,849


31,943


27,665


19,607


23,694


Restructured loans

12,945


4,720


3,603


3,561


2,203


Total nonperforming and restructured loans

48,694


39,556


33,390


25,385


27,921


Other real estate owned and repossessed assets

3,676


4,424


4,099


4,211


4,404


Total nonperforming and restructured assets

52,370


43,980


37,489


29,596


32,325


Nonperforming and restructured loans to total loans

0.98

%

0.84

%

0.72

%

0.55

%

0.63

%

Nonperforming and restructured assets to total assets

0.69


0.61


0.53


0.42


0.45


Allowance to total loans

1.03


1.09


1.10


1.07


1.09


Allowance to nonperforming and restructured loans

105.87


130.62


153.50


193.05


171.63


Net charge-offs to average loans

0.01


0.06


0.02


0.02


0.02













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












Stockholders' equity

$     838,096


$     775,629


$     764,414


$      748,462


$     729,873


Less goodwill

79,796


54,042


54,042


54,042


54,042


Less intangible assets, net

18,782


11,082


11,645


12,203


12,768


Tangible stockholders' equity (non-GAAP)

$     739,518


$     710,505


$     698,727


$     682,217


$     663,063


Common shares outstanding

32,707,166


31,894,563


31,863,063


31,818,438


31,782,552


Tangible book value per common share (non-GAAP)

$         22.61


$         22.28


$         21.93


$          21.44


$         20.86














(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, 2018



Average


Income/


 Yield/



Balance


Expense


 Rate


ASSETS







Earning assets:







  Loans

$   4,993,902


$   63,055


5.12

%

  Securities ? taxable

438,848


1,898


1.75


  Securities ? tax exempt

29,444


216


2.98


  Interest bearing deposits with banks

1,536,973


5,886


1.55


     Total earning assets

6,999,167


71,055


4.12









Nonearning assets:







  Cash and due from banks

185,548






  Interest receivable and other assets

382,536






  Allowance for loan losses

(52,479)






     Total nonearning assets

515,605






     Total assets

$   7,514,772













LIABILITIES AND STOCKHOLDERS' EQUITY







Interest-bearing liabilities:







  Transaction deposits                      

$      809,827


$       394


0.20

%

  Savings deposits

2,451,433


5,106


0.84


  Time deposits

777,811


1,769


0.92


  Short-term borrowings

7,996


35


1.79


  Junior subordinated debentures

31,959


535


6.79


     Total interest-bearing liabilities

4,079,026


7,839


0.78









Interest-free funds:







  Noninterest bearing deposits

2,582,195






  Interest payable and other liabilities

30,683






  Stockholders' equity

822,868






     Total interest free-funds

3,435,746






     Total liabilities and stockholders' equity

$   7,514,772






Net interest income



$   63,216




Net interest spread





3.34

%

Effect of interest free funds





0.32

%

Net interest margin





3.66

%

 

SOURCE BancFirst


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