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| 8-K - FORM 8-K - BANCFIRST CORP /OK/ | v471058_8k.htm |
BancFirst Corporation Reports Second Quarter Earnings
OKLAHOMA CITY, July 20, 2017 /PRNewswire/ -- BancFirst Corporation (NASDAQ GS:BANF) reported net income of $23.2 million, or $1.42 diluted earnings per share, for the second quarter of 2017 compared to net income of $17.5 million, or $1.10 diluted earnings per share, for the second quarter of 2016. A lower effective tax rate and the resolution of a problem loan during the second quarter of 2017 added 7 cents per share. Net income for the six months ended June 30, 2017 was $45.2 million, or $2.78 per share, compared to $34.1 million, or $2.15 per share, for the first half of 2016. Net income for the first half of 2017 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.
The Company's net interest income for the second quarter of 2017 increased to $56.4 million compared to $50.9 million for the second quarter of 2016. The net interest margin for the quarter was 3.43% compared to 3.28% a year ago. The increase in margin was primarily due to the increase in the federal funds rate and the favorable resolution of an acquired loan, which added 2 basis points. The provision for loan losses for the second quarter of 2017 decreased to $1.8 million compared to $2.8 million a year ago. The decrease in the provision was due in part to an unusually high provision for a few commercial loans in the prior year. Net charge-offs were stable at 0.02% of average loans for the second quarter of both 2017 and 2016. Noninterest income for the quarter totaled $28.0 million, compared to $26.1 million last year. Noninterest expense for the quarter totaled $49.0 million compared to $47.7 million last year. The increase in noninterest expense was due to salary increases in 2017. The Company's effective tax rate was 31.1% compared to 33.7% for the second quarter of 2016 adding approximately $875,000 to net income. The decrease in the effective tax rate was due to a change in accounting standards related to stock based compensation.
At June 30, 2017, the Company's total assets were largely unchanged at $7.0 billion, $27.6 million above the December 31, 2016 total. Securities of $451.4 million were down slightly from December 31, 2016. Loans totaled $4.6 billion, an increase of $177.9 million over December 31, 2016. Deposits were flat totaling $6.2 billion at both June 30, 2017 and December 31, 2016. The Company's total stockholders' equity was $748.5 million, an increase of $37.4 million over December 31, 2016.
Asset quality remained strong during the second quarter of 2017. Nonperforming and restructured assets fell to 0.42% of total assets at June 30, 2017 compared to 0.56% at December 31, 2016. The decrease in nonperforming and restructured assets was largely due to the resolution of the aforementioned problem loans during the first half of 2017. The allowance to total loans was 1.07% compared to 1.10% at year-end 2016. The allowance to nonperforming and restructured loans was 193.1% compared to 137.3% at year-end 2016.
Executive Chairman David Rainbolt commented, "With our strong core community deposits we obviously benefit from Fed rate changes. Our task now is to grow earning assets in a modest economic environment."
On May 31, 2017, the Company announced that its Board of Directors approved a two-for-one stock split of the Company's outstanding shares of common stock. The stock will be payable in the form of a dividend on or about July 31, 2017 to shareholders of record of the outstanding common stock as of the close of business record date of July 17, 2017. Stockholders will receive one additional share for each share held on that date. This represents the second stock split for BancFirst since going public.
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 100 banking locations serving 53 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 |
| 2016 |
| 2016 |
| 2016 |
|
|
| 2nd Qtr |
| 1st Qtr |
| 4th Qtr |
| 3rd Qtr |
| 2nd Qtr |
|
Condensed Income Statements: |
|
|
|
|
|
|
|
|
|
|
Net interest income | $ 56,439 |
| $ 54,768 |
| $ 51,553 |
| $ 51,431 |
| $ 50,868 |
|
Provision for loan losses | 1,841 |
| 72 |
| 1,672 |
| 2,940 |
| 2,804 |
|
Non-interest income: |
|
|
|
|
|
|
|
|
|
|
Trust revenue | 2,894 |
| 2,952 |
| 2,878 |
| 2,685 |
| 2,602 |
|
Service charges on deposits | 16,448 |
| 15,778 |
| 16,005 |
| 16,033 |
| 15,485 |
|
Securities transactions | (330) |
| --- |
| 52 |
| (146) |
| (65) |
|
Income from sales of loans | 816 |
| 632 |
| 705 |
| 863 |
| 695 |
|
Insurance commissions | 3,728 |
| 4,563 |
| 3,797 |
| 4,372 |
| 3,255 |
|
Cash management | 2,799 |
| 2,754 |
| 2,713 |
| 2,853 |
| 2,732 |
|
Other | 1,628 |
| 1,406 |
| 1,281 |
| 1,267 |
| 1,353 |
|
Total noninterest income | 27,983 |
| 28,085 |
| 27,431 |
| 27,927 |
| 26,057 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense: |
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits | 31,547 |
| 30,654 |
| 29,706 |
| 30,591 |
| 30,008 |
|
Occupancy expense, net | 2,992 |
| 2,974 |
| 3,198 |
| 3,217 |
| 3,071 |
|
Depreciation | 2,392 |
| 2,420 |
| 2,461 |
| 2,556 |
| 2,567 |
|
Amortization of intangible assets | 547 |
| 547 |
| 548 |
| 560 |
| 580 |
|
Data processing services | 1,097 |
| 1,195 |
| 1,229 |
| 1,178 |
| 1,174 |
|
Net expense from other real estate owned | 202 |
| 50 |
| 197 |
| 162 |
| 35 |
|
Marketing and business promotion | 1,559 |
| 2,215 |
| 1,978 |
| 1,779 |
| 1,624 |
|
Deposit insurance | 542 |
| 588 |
| 569 |
| 641 |
| 855 |
|
Other | 8,075 |
| 8,945 |
| 8,303 |
| 8,520 |
| 7,806 |
|
Total noninterest expense | 48,953 |
| 49,588 |
| 48,189 |
| 49,204 |
| 47,720 |
|
Income before income taxes | 33,628 |
| 33,193 |
| 29,123 |
| 27,214 |
| 26,401 |
|
Income tax expense | 10,446 |
| 11,143 |
| 10,503 |
| 9,232 |
| 8,908 |
|
Net income | $ 23,182 |
| $ 22,050 |
| $ 18,620 |
| $ 17,982 |
| $ 17,493 |
|
Per Common Share Data: |
|
|
|
|
|
|
|
|
|
|
Net income-basic | $ 1.46 |
| $ 1.39 |
| $ 1.19 |
| $ 1.15 |
| $ 1.12 |
|
Net income-diluted | 1.42 |
| 1.36 |
| 1.16 |
| 1.13 |
| 1.10 |
|
Cash dividends declared | 0.38 |
| 0.38 |
| 0.38 |
| 0.38 |
| 0.36 |
|
Common shares outstanding | 15,909,219 |
| 15,891,276 |
| 15,810,935 |
| 15,695,083 |
| 15,560,271 |
|
Average common shares outstanding - |
|
|
|
|
|
|
|
|
|
|
Basic | 15,903,805 |
| 15,864,807 |
| 15,743,770 |
| 15,631,094 |
| 15,549,811 |
|
Diluted | 16,261,688 |
| 16,237,998 |
| 16,046,061 |
| 15,922,209 |
| 15,842,485 |
|
Performance Ratios: |
|
|
|
|
|
|
|
|
|
|
Return on average assets | 1.31 | % | 1.27 | % | 1.07 | % | 1.06 | % | 1.04 | % |
Return on average equity | 12.52 |
| 12.37 |
| 10.44 |
| 10.35 |
| 10.42 |
|
Net interest margin | 3.43 |
| 3.39 |
| 3.19 |
| 3.27 |
| 3.28 |
|
Efficiency ratio | 57.99 |
| 59.85 |
| 61.01 |
| 62.00 |
| 62.03 |
|
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| ||||||||||
BancFirst Corporation | ||||||||||
Summary Financial Information | ||||||||||
(Dollars in thousands, except per share and share data - Unaudited) | ||||||||||
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|
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| Six months ended June 30, |
| ||
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|
|
|
|
|
| 2017 |
| 2016 |
|
Condensed Income Statements: |
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
|
| $ 111,207 |
| $ 100,844 |
|
Provision for loan losses |
|
|
|
|
|
| 1,913 |
| 6,907 |
|
Non-interest income: |
|
|
|
|
|
|
|
|
|
|
Trust revenue |
|
|
|
|
|
| 5,846 |
| 5,067 |
|
Service charges on deposits |
|
|
|
|
|
| 32,226 |
| 30,195 |
|
Securities transactions |
|
|
|
|
|
| (330) |
| 35 |
|
Income from sales of loans |
|
|
|
|
|
| 1,448 |
| 1,257 |
|
Insurance commissions |
|
|
|
|
|
| 8,291 |
| 7,390 |
|
Cash management |
|
|
|
|
|
| 5,553 |
| 5,050 |
|
Other |
|
|
|
|
|
| 3,034 |
| 2,680 |
|
Total noninterest income |
|
|
|
|
|
| 56,068 |
| 51,674 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense: |
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
|
|
|
| 62,201 |
| 59,365 |
|
Occupancy expense, net |
|
|
|
|
|
| 5,966 |
| 5,898 |
|
Depreciation |
|
|
|
|
|
| 4,812 |
| 5,097 |
|
Amortization of intangible assets |
|
|
|
|
|
| 1,094 |
| 1,161 |
|
Data processing services |
|
|
|
|
|
| 2,292 |
| 2,389 |
|
Net expense (income) from other real estate owned |
|
|
|
|
|
| 252 |
| (1,106) |
|
Marketing and business promotion |
|
|
|
|
|
| 3,774 |
| 3,479 |
|
Deposit insurance |
|
|
|
|
|
| 1,130 |
| 1,694 |
|
Other |
|
|
|
|
|
| 17,020 |
| 16,034 |
|
Total noninterest expense |
|
|
|
|
|
| 98,541 |
| 94,011 |
|
Income before income taxes |
|
|
|
|
|
| 66,821 |
| 51,600 |
|
Income tax expense |
|
|
|
|
|
| 21,589 |
| 17,528 |
|
Net income |
|
|
|
|
|
| $ 45,232 |
| $ 34,072 |
|
Per Common Share Data: |
|
|
|
|
|
|
|
|
|
|
Net income-basic |
|
|
|
|
|
| $ 2.85 |
| $ 2.19 |
|
Net income-diluted |
|
|
|
|
|
| 2.78 |
| 2.15 |
|
Cash dividends declared |
|
|
|
|
|
| 0.76 |
| 0.72 |
|
Common shares outstanding |
|
|
|
|
|
| 15,909,219 |
| 15,560,271 |
|
Average common shares outstanding - |
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
| 15,884,414 |
| 15,542,114 |
|
Diluted |
|
|
|
|
|
| 16,249,995 |
| 15,830,677 |
|
Performance Ratios: |
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
|
|
|
| 1.29 | % | 1.02 | % |
Return on average stockholders' equity |
|
|
|
|
|
| 12.44 |
| 10.23 |
|
Net interest margin |
|
|
|
|
|
| 3.41 |
| 3.27 |
|
Efficiency ratio |
|
|
|
|
|
| 58.91 |
| 61.64 |
|
BancFirst Corporation | ||||||||||
Summary Financial Information | ||||||||||
(Dollars in thousands, except per share and share data - Unaudited) | ||||||||||
|
| ||||||||||
|
| 2017 |
| 2017 |
| 2016 |
| 2016 |
| 2016 |
|
|
| 2nd Qtr |
| 1st Qtr |
| 4th Qtr |
| 3rd Qtr |
| 2nd Qtr |
|
Balance Sheet Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets | $ 7,046,589 |
| $ 7,189,637 |
| $ 7,018,952 |
| $ 6,783,537 |
| $ 6,683,376 |
|
Interest-bearing deposits with banks | 1,533,147 |
| 1,857,961 |
| 1,666,540 |
| 1,532,095 |
| 1,373,923 |
|
Securities | 451,402 |
| 463,250 |
| 469,833 |
| 473,738 |
| 419,238 |
|
Total loans | 4,587,454 |
| 4,398,529 |
| 4,409,550 |
| 4,317,512 |
| 4,337,063 |
|
Allowance for loan losses | (49,005) |
| (47,921) |
| (48,693) |
| (48,061) |
| (46,566) |
|
Deposits | 6,235,682 |
| 6,394,627 |
| 6,248,057 |
| 6,024,949 |
| 5,943,982 |
|
Stockholders' equity | 748,462 |
| 729,873 |
| 711,094 |
| 693,731 |
| 676,830 |
|
Book value per common share | 47.05 |
| 45.93 |
| 44.97 |
| 44.20 |
| 43.50 |
|
Tangible book value per common share | 42.88 |
| 41.72 |
| 40.71 |
| 39.87 |
| 39.09 |
|
Balance Sheet Ratios: |
|
|
|
|
|
|
|
|
|
|
Average loans to deposits | 71.47 | % | 70.13 | % | 70.98 | % | 71.77 | % | 71.74 | % |
Average earning assets to total assets | 93.44 |
| 93.45 |
| 93.30 |
| 93.16 |
| 93.05 |
|
Average stockholders' equity to average assets | 10.46 |
| 10.25 |
| 10.26 |
| 10.22 |
| 10.02 |
|
Asset Quality Data: |
|
|
|
|
|
|
|
|
|
|
Past due loans | $ 2,217 |
| $ 2,024 |
| $ 1,962 |
| $ 1,906 |
| $ 2,695 |
|
Nonaccrual loans | 19,607 |
| 23,694 |
| 31,798 |
| 31,014 |
| 30,063 |
|
Restructured loans | 3,561 |
| 2,203 |
| 1,713 |
| 1,842 |
| 1,974 |
|
Total nonperforming and restructured loans | 25,385 |
| 27,921 |
| 35,473 |
| 34,762 |
| 34,732 |
|
Other real estate owned and repossessed assets | 4,211 |
| 4,404 |
| 3,866 |
| 4,339 |
| 4,469 |
|
Total nonperforming and restructured assets | 29,596 |
| 32,325 |
| 39,339 |
| 39,101 |
| 39,201 |
|
Nonperforming and restructured loans to total loans | 0.55 | % | 0.63 | % | 0.80 | % | 0.81 | % | 0.80 | % |
Nonperforming and restructured assets to total assets | 0.42 |
| 0.45 |
| 0.56 |
| 0.58 |
| 0.59 |
|
Allowance to total loans | 1.07 |
| 1.09 |
| 1.10 |
| 1.11 |
| 1.07 |
|
Allowance to nonperforming and restructured loans | 193.05 |
| 171.63 |
| 137.27 |
| 138.26 |
| 134.07 |
|
Net charge-offs to average loans | 0.02 |
| 0.02 |
| 0.02 |
| 0.03 |
| 0.02 |
|
|
| ||||||||||
BancFirst Corporation | ||||||||||||||
Consolidated Average Balance Sheets | ||||||||||||||
And Interest Margin Analysis | ||||||||||||||
Taxable Equivalent Basis | ||||||||||||||
(Dollars in thousands - Unaudited) | ||||||||||||||
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| Three Months Ended |
| Six Months Ended |
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| June 30, 2017 |
| June 30, 2017 |
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| Interest |
| Average |
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|
| Interest |
| Average |
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| Average |
| Income/ |
| Yield/ |
| Average |
| Income/ |
| Yield/ |
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| Balance |
| Expense |
| Rate |
| Balance |
| Expense |
| Rate |
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ASSETS |
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Earning assets: |
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|
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|
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|
|
|
| ||
|
| Loans | $ 4,504,890 |
| $ 54,980 |
| 4.90 | % | $ 4,453,087 |
| $ 108,813 |
| 4.93 | % | |
Securities – taxable | 426,396 |
| 1,906 |
| 1.79 |
| 430,772 |
| 3,667 |
| 1.72 |
| ||
Securities – tax exempt | 32,135 |
| 275 |
| 3.44 |
| 32,710 |
| 562 |
| 3.46 |
| ||
Interest bearing deposits with banks | 1,676,871 |
| 4,426 |
| 1.06 |
| 1,700,677 |
| 7,866 |
| 0.93 |
| ||
Total earning assets | 6,640,292 |
| 61,587 |
| 3.72 |
| 6,617,246 |
| 120,908 |
| 3.68 |
| ||
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|
|
|
|
|
|
|
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Nonearning assets: |
|
|
|
|
|
|
|
|
|
|
|
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Cash and due from banks | 175,372 |
|
|
|
|
| 174,356 |
|
|
|
|
| ||
Interest receivable and other assets | 338,798 |
|
|
|
|
| 337,963 |
|
|
|
|
| ||
Allowance for loan losses | (48,285) |
|
|
|
|
| (48,368) |
|
|
|
|
| ||
Total nonearning assets | 465,885 |
|
|
|
|
| 463,951 |
|
|
|
|
| ||
Total assets | $ 7,106,177 |
|
|
|
|
| $ 7,081,197 |
|
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LIABILITIES AND |
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STOCKHOLDERS' EQUITY |
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Interest bearing liabilities: |
|
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|
|
|
|
|
|
|
|
| ||
Transaction deposits | $ 793,265 |
| $ 213 |
| 0.11 | % | $ 794,497 |
| $ 424 |
| 0.11 | % | ||
Savings deposits | 2,272,227 |
| 2,778 |
| 0.49 |
| 2,268,095 |
| 5,075 |
| 0.45 |
| ||
Time deposits | 681,797 |
| 1,309 |
| 0.77 |
| 683,675 |
| 2,526 |
| 0.75 |
| ||
Short-term borrowings | 1,582 |
| 4 |
| 0.91 |
| 1,725 |
| 7 |
| 0.87 |
| ||
Junior subordinated debentures | 31,959 |
| 530 |
| 6.65 |
| 31,959 |
| 1,057 |
| 6.67 |
| ||
Total interest bearing liabilities | 3,780,830 |
| 4,834 |
| 0.51 |
| 3,779,951 |
| 9,089 |
| 0.48 |
| ||
|
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Interest free funds: |
|
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|
|
|
|
|
|
|
|
|
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Noninterest bearing deposits | 2,556,003 |
|
|
|
|
| 2,543,015 |
|
|
|
|
| ||
Interest payable and other liabilities | 26,383 |
|
|
|
|
| 25,137 |
|
|
|
|
| ||
Stockholders' equity | 742,961 |
|
|
|
|
| 733,094 |
|
|
|
|
| ||
Total interest free funds | 3,325,347 |
|
|
|
|
| 3,301,246 |
|
|
|
|
| ||
Total liabilities and stockholders' equity | $ 7,106,177 |
|
|
|
|
| $ 7,081,197 |
|
|
|
|
| ||
Net interest income |
|
| $ 56,753 |
|
|
|
|
| $ 111,819 |
|
|
| ||
Net interest spread |
|
|
|
| 3.21 | % |
|
|
|
| 3.20 | % | ||
Effect of interest free funds |
|
|
|
| 0.22 | % |
|
|
|
| 0.21 | % | ||
Net interest margin |
|
|
|
| 3.43 | % |
|
|
|
| 3.41 | % | ||
CONTACT: Kevin Lawrence, Chief Financial Officer at (405) 270-1003 or David Rainbolt, Executive Chairman at (405) 270-1002.