BancFirst Corporation Reports First Quarter Earnings

OKLAHOMA CITY, April 15, 2021 /PRNewswire/ — BancFirst Corporation (NASDAQ GS:BANF) reported net income of $42.5 million, or $1.27 diluted…

OKLAHOMA CITY, April 15, 2021 /PRNewswire/ — BancFirst Corporation (NASDAQ GS:BANF) reported net income of $42.5 million, or $1.27 diluted earnings per share, for the first quarter of 2021 compared to net income of $22.6 million, or $0.68 diluted earnings per share, for the first quarter of 2020. For the first quarter of 2021, no provision for credit losses was recorded, compared to a provision for credit losses of $19.6 million for the first quarter of 2020.

BancFirst Corporation Executive Chairman David Rainbolt commented, «Clearly the worst case scenarios for credit losses resulting from the pandemic are off the table. The consequence is that large reserve balances from last year’s provisions do not need to be augmented. Moreover, if the economy continues to progress, we will likely see reversal of those provisions to some degree over the balance of the year.»

The Company’s net interest income for the first quarter of 2021 increased to $77.2 million compared to $74.1 million for the first quarter of 2020. Net interest income increased for the first quarter of 2021 due to loan growth, PPP fee income of approximately $9.5 million and the decrease in interest rates paid on deposits. The net interest margin for the quarter was 3.36% compared to 3.82% a year ago. Noninterest income for the quarter totaled $39.9 million, compared to $35.1 million last year. The increase in noninterest income was due to a gain from the sale of the Company’s Hugo, Oklahoma branch of $2.5 million, $2.4 million in rental income from a real estate property foreclosed on in the fourth quarter of 2020, and a $1.2 million increase in income from sales of mortgage loans, which were partially offset by a $1.3 million decrease in treasury management income. Noninterest expense for the quarter increased to $65.0 million compared to $61.4 million last year because of $1.4 million of expenses related to the aforementioned foreclosed property, and a $2.2 million gain on the sale of other real estate owned in the first quarter of 2020 that reduced noninterest expense. The Company’s effective tax rate was 18.5% compared to 20.0% for the first quarter of 2020.  

At March 31, 2021, the Company’s total assets were $10.5 billion, an increase of $1.3 billion from December 31, 2020. Debt securities of $520.5 million were down $34.7 million from December 31, 2020. Loans totaled $6.4 billion, a decrease of $68.1 million from December 31, 2020 partially due to approximately $21 million of loans that were sold with the Company’s Hugo, Oklahoma branch. Deposits totaled $9.4 billion, an increase of $1.3 billion from December 31, 2020. The increase in assets and deposits was primarily related to the Paycheck Protection Program (PPP) and other government stimulus payments. At March 31, 2021, the balance of the PPP loans was $713.7 million. The Company’s total stockholders’ equity was $1.1 billion, an increase of $26.8 million over December 31, 2020. Off-balance sheet sweep accounts were $2.2 billion at March 31, 2021 compared to $2.7 billion at December 31, 2020.

Nonaccrual loans represent 0.55% of total loans at March 31, 2021, down from 0.58% at year-end 2020. Net charge-offs for the quarter were 0.01% of average loans, compared to 0.02% of average loans for the first quarter of 2020.  The allowance for credit losses to total loans was 1.42% at both March 31, 2021 and year-end 2020, and the allowance for credit losses to nonaccrual loans was 257.20% compared to 243.35% at year-end 2020.

On February 19, 2021, the Company entered into a purchase and assumption agreement with The First National Bank and Trust Company of Vinita, Oklahoma to purchase certain of its assets and assume its deposits and certain other obligations. The First National Bank and Trust Company of Vinita is a nationally chartered bank with banking locations in Vinita and Grove, Oklahoma. These banking locations would become branches of BancFirst. As of December 31, 2020, The First National Bank and Trust Company of Vinita had approximately $285 million in total assets, $209 million in loans, and $258 million in deposits. The purchase and assumption is expected to be completed during the second quarter of 2021 and is subject to regulatory approval.

BancFirst Corporation CEO David Harlow commented, «Government stimulus continued to inject liquidity into the economy and drive deposit totals materially higher.  Absent PPP, overall loan demand continues to be soft.  PPP fees generated from both round 1 and round 2 bolstered net interest income while both core non-interest income and core non-interest expense were essentially flat.  With zero provision for the quarter compared to $19.6 million a year ago, a nominally strong quarter at $1.28 per share is the result.»

BancFirst Corporation (the Company) is an Oklahoma based financial services holding company.  The Company operates two subsidiary banks, BancFirst, an Oklahoma state-chartered bank with 106 banking locations serving 58 communities across Oklahoma, and Pegasus Bank, with 3 banking locations in Dallas, TX. 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)




2021



2020



2020



2020



2020




1st Qtr



4th Qtr



3rd Qtr



2nd Qtr



1st Qtr


 Condensed Income Statements:





















 Net interest income


$

77,206



$

79,535



$

75,852



$

77,208



$

74,073


 Provision for credit losses






4,992




18,740




19,333




19,583


 Non-interest income:





















Trust revenue



3,102




2,976




3,131




3,368




3,655


Service charges on deposits



19,100




19,796




19,078




16,760




18,804


Securities transactions



95




156







(595)




50


Income from sales of loans



2,010




1,852




1,873




1,561




781


Insurance commissions



5,989




5,680




5,197




4,443




5,676


Cash management



3,003




3,135




3,701




4,255




4,320


Other



6,636




1,825




1,595




2,290




1,859


Total noninterest income



39,935




35,420




34,575




32,082




35,145























 Non-interest expense:





















Salaries and employee benefits



39,577




40,750




41,995




42,226




39,756


Occupancy expense, net



4,348




4,533




4,503




3,839




3,546


Depreciation



3,877




3,779




3,795




3,544




3,491


Amortization of intangible assets



793




915




968




968




964


Data processing services



1,678




1,763




1,669




1,629




1,692


Net expense from other real estate owned



1,510




420




196




(12)




(2,135)


Marketing and business promotion



1,879




1,671




1,485




1,485




2,355


Deposit insurance



876




857




723




365




136


Other



10,425




10,923




10,749




10,607




11,580


   Total noninterest expense



64,963




65,611




66,083




64,651




61,385


 Income before income taxes



52,178




44,352




25,604




25,306




28,250


 Income tax expense



9,658




8,994




4,714




4,576




5,642


 Net income


$

42,520



$

35,358



$

20,890



$

20,730



$

22,608


 Per Common Share Data:





















 Net income-basic


$

1.30



$

1.08



$

0.64



$

0.64



$

0.69


 Net income-diluted



1.27




1.06




0.63




0.63




0.68


 Cash dividends declared



0.34




0.34




0.34




0.32




0.32


 Common shares outstanding



32,771,013




32,719,852




32,679,191




32,662,691




32,646,691


 Average common shares outstanding –





















   Basic



32,756,852




32,690,296




32,668,789




32,651,262




32,679,587


   Diluted



33,408,116




33,275,550




33,168,938




33,075,493




33,287,359


 Performance Ratios:





















 Return on average assets



1.69

%



1.45

%



0.86

%



0.88

%



1.07

%

 Return on average stockholders’ equity



15.90




13.25




7.89




7.99




8.87


 Net interest margin



3.36




3.54




3.40




3.54




3.82


 Efficiency ratio



55.46




57.08




59.84




59.16




56.20























 


BancFirst Corporation



Summary Financial Information



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



























2021



2020



2020



2020



2020





1st Qtr



4th Qtr



3rd Qtr



2nd Qtr



1st Qtr



Balance Sheet Data:












































Total assets


$

10,549,305



$

9,212,357



$

9,618,868



$

9,612,453



$

8,669,096



Interest-bearing deposits with banks



2,788,316




1,336,394




1,609,462




1,583,116




1,356,826



Debt securities



520,543




555,196




596,941




608,031




591,987



Total loans



6,380,108




6,448,225




6,660,694




6,696,856




6,006,065



Allowance for credit losses



(90,860)




(91,366)




(106,126)




(89,500)




(70,080)



Deposits



9,371,940




8,064,704




8,495,891




8,486,671




7,573,200



Stockholders’ equity



1,094,671




1,067,885




1,043,752




1,034,199




1,023,380



Book value per common share



33.40




32.64




31.94




31.66




31.35



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



28.27




27.47




26.74




26.43




26.09



Balance Sheet Ratios:






















Average loans to deposits



70.84

%



77.02

%



78.55

%



79.78

%



77.75

%


Average earning assets to total assets



91.54




91.82




91.99




92.23




91.51



Average stockholders’ equity to average assets



10.64




10.91




10.90




10.96




12.02



Asset Quality Data:






















Past due loans


$

5,282



$

4,802



$

6,412



$

5,382



$

10,065



Nonaccrual loans (5)



35,326




37,545




82,385




49,477




45,181



Restructured loans



7,801




7,784




2,837




3,213




3,158



Total nonperforming and restructured loans



48,409




50,131




91,634




58,072




58,404



Other real estate owned and repossessed assets



30,320




32,480




4,939




4,948




6,001



Total nonperforming and restructured assets



78,729




82,611




96,573




63,020




64,405



Nonaccrual loans to total loans



0.55

%



0.58

%



1.24

%



0.74

%



0.75

%


Nonaccrual loans to total Non-PPP loans (non-GAAP)(3)



0.62




0.65




1.41




0.84




0.75



Nonperforming and restructured loans to total loans



0.76




0.78




1.38




0.87




0.97



Nonperforming and restructured loans to total Non-PPP loans (non-GAAP)(3)



0.85




0.86




1.57




0.99




0.97



Nonperforming and restructured assets to total assets



0.75




0.90




1.00




0.66




0.74



Allowance for credit losses to total loans



1.42




1.42




1.59




1.34




1.17



Allowance for credit losses to total Non-PPP loans (non-GAAP)(3)



1.60




1.58




1.82




1.52




1.17



Allowance for credit losses to nonaccrual loans



257.20




243.35




128.82




180.89




155.11



Allowance for credit losses to nonperforming and restructured loans



187.69




182.26




115.81




154.12




119.99



Net charge-offs to average loans



0.01




0.30




0.03




0.00




0.02

























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












































Stockholders’ equity


$

1,094,671



$

1,067,885



$

1,043,752



$

1,034,199



$

1,023,380



Less goodwill



149,922




149,922




149,922




149,922




149,923



Less intangible assets, net



18,206




18,999




19,914




20,882




21,850



Tangible stockholders’ equity (non-GAAP)


$

926,543



$

898,964



$

873,916



$

863,395



$

851,607



Common shares outstanding



32,771,013




32,719,852




32,679,191




32,662,691




32,646,691



Tangible book value per common share (non-GAAP)


$

28.27



$

27.47



$

26.74



$

26.43



$

26.09

























(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.

























Reconciliation of Non-PPP loan ratios (non-GAAP)(4):












































Total loans


$

6,380,108



$

6,448,225



$

6,660,694



$

6,696,856



$

6,006,065



Less PPP loans



713,714




652,693




831,703




825,093






Total Non-PPP loans (non-GAAP)


$

5,666,394



$

5,795,532



$

5,828,991



$

5,871,763



$

6,006,065

























Nonaccrual loans (5)



35,326




37,545




82,385




49,477




45,181



Nonaccrual loans to total Non-PPP loans (non-GAAP)



0.62

%



0.65

%



1.41

%



0.84

%



0.75

%


Total nonperforming and restructured loans



48,409




50,131




91,634




58,072




58,404



Nonperforming and restructured loans to total Non-PPP loans (non-GAAP)



0.85

%



0.86

%



1.57

%



0.99

%



0.97

%


Allowance for credit losses



(90,860)




(91,366)




(106,126)




(89,500)




(70,080)



Allowance for credit losses to total Non-PPP loans (non-GAAP)



1.60

%



1.58

%



1.82

%



1.52

%



1.17

%
























(3)  Refer to the «Reconciliation of Non-PPP loan ratios (non-GAAP)» Table.



(4)  Nonaccrual loans to total Non-PPP loans is nonaccrual loans, divided by total loans less Paycheck Protection Program (PPP) loans. Nonperforming and restructured loans to total Non-PPP loans is nonperforming and restructured loans, divided by total loans less PPP loans. Allowance to total Non-PPP loans is allowance for credit losses, divided by total loans less PPP loans. These amounts are non-GAAP financial measures but have been included as they are considered critical metrics with which to analyze and evaluate the financial condition and capital strength of the Company. These measures should not be considered substitutes for operating results determined in accordance with GAAP.



(5) Government Agencies guarantee approximately $6.6 million of nonaccrual loans at March 31, 2021.


 

BancFirst Corporation

Consolidated Average Balance Sheets

And Interest Margin Analysis

Taxable Equivalent Basis

(Dollars in thousands – Unaudited)




Three Months Ended





March 31, 2021









Interest



Average





Average



Income/



Yield/





Balance



Expense



Rate



ASSETS














Earning assets:














  Loans


$

6,400,845



$

77,766




4.93


%

  Securities – taxable



521,698




1,693



1.32



  Securities – tax exempt



19,340



88



1.84



  Interest bearing deposits with banks and FFS



2,387,000



595




0.10



     Total earning assets



9,328,883




80,142



3.48

















Nonearning assets:














  Cash and due from banks



268,848











  Interest receivable and other assets



683,868











  Allowance for credit losses



(90,551)











     Total nonearning assets



862,165











     Total assets


$

10,191,048

























LIABILITIES AND STOCKHOLDERS EQUITY

Interest bearing liabilities:














  Transaction deposits


$

766,994



$

149



0.08


%

  Savings deposits



3,504,020




1,106



0.13



  Time deposits



657,938




1,067



0.66



  Short-term borrowings



2,928




1



0.19



  Junior subordinated debentures



26,804



491



7.43



     Total interest bearing liabilities



4,958,684




2,814



0.23

















Interest free funds:














  Noninterest bearing deposits



4,106,084











  Interest payable and other liabilities



41,522











  Stockholders’ equity



1,084,758











     Total interest free  funds



5,232,364











     Total liabilities and stockholders’ equity


$

10,191,048











Net interest income






$

77,328







Net interest spread










3.25


%

Effect of interest free funds











0.11


%

Net interest margin











3.36


%

 

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SOURCE BancFirst