BancFirst Corporation Reports Fourth Quarter Earnings

Jan 21, 2016, 16:30 ET from BancFirst

OKLAHOMA CITY, Jan. 21, 2016 /PRNewswire/ -- BancFirst Corporation (NASDAQ GS:BANF) reported net income of $15.7 million, or $0.99 diluted earnings per share, for the fourth quarter of 2015, approximately equal to the fourth quarter of 2014. Net income for the year ended December 31, 2015 was $66.2 million, or $4.17 diluted earnings per share, compared to $63.9 million, or $4.04 diluted earnings per share, for 2014.

The Company's net interest income for the fourth quarter of 2015 was $50.1 million compared to $47.3 million for the fourth quarter of 2014. The net interest margin for the quarter was 3.23% compared to 3.14% a year ago. Internal loan growth and acquired loans from our acquisitions contributed to the higher net interest income and margin in 2015.  The provision for loan losses for the fourth quarter of 2015 was $3.6 million compared to $1.8 million a year ago.  Net charge-offs for the quarter were 0.07% of average loans, compared to net charge-offs of 0.01% for the fourth quarter of 2014. Net charge-offs increased during the quarter partially due to an $857,000 charge off on a portion of a nonaccrual loan. Noninterest income for the quarter totaled $26.5 million, compared to $24.3 million last year.  The increase was primarily due to a gain on sale of securities of $2.1 million, related to the redemption of warrants associated with a past loan transaction. Noninterest expense for the quarter totaled $49.0 million compared to $46.9 million last year; the increase during the quarter included acquisition costs of approximately $965,000.

For the year ended 2015, the Company's net interest income was $188.8 million compared to $181.4 million for 2014. The net interest margin for the year increased to 3.12% compared to 3.09% for the previous year. Internal loan growth and acquired loans from our acquisitions contributed to the higher net interest income and margin in 2015. In addition, the Company recognized discounts from payoffs of acquired loans of $2.3 million in 2015 and $2.2 million of in 2014. The provision for loan losses for 2015 was $7.7 million compared to $3.1 million a year ago. As previously disclosed, the 2014 provision for loan losses included a reversal of $5.3 million as a result of a change in the loan loss factors. The Company reported net charge-offs to average loans of 0.17% for 2015 compared to 0.03% for 2014. Net charge-offs increased in 2015 due to a $2.9 million charge off on a portion of a nonaccrual loan.  Noninterest income for 2015 totaled $105.8 million compared to $96.4 million for 2014. The increase was primarily due to a gain on sale of securities of $9.3 million, of which $2.1 million was related to the redemption of warrants associated with a past loan transaction and $5.3 million was from the sale of an investment by the Company's wholly-owned subsidiary, Council Oak Partners, LLC.  Noninterest expense was $185.7 million compared to $183.5 million for 2014; the increase was partially related to acquisition costs of approximately $965,000.  The effective income tax rate for 2015 increased to 34.62% compared to 29.93% for 2014, primarily due to an investment in federal and state tax credits that were utilized in 2014.

At December 31, 2015, the Company's total assets were $6.7 billion, up $117.9 million or 1.8% from December 31, 2014. Securities increased $29.7 million to a total of $554.4 million. Loans totaled $4.2 billion, up $383.4 million or 9.9% from December 31, 2014. Deposits totaled $6.0 billion, up $68.7 million or 1.2% from December 31, 2014. The Company's total stockholders' equity was $655.5 million, an increase of $46.2 million, or 7.6%, over December 31, 2014.

Asset quality remained strong during the fourth quarter of 2015.  Nonperforming and restructured assets were 0.83% of total assets at December 31, 2015 compared to 0.64% at December 31, 2014 and 0.87% at September 30, 2015. The allowance to total loans was 0.98% compared to 1.06% at year-end 2014.

On October 8, 2015, the Company completed the acquisition of CSB Bancshares, Inc. and its subsidiary bank, Bank of Commerce, with locations in Yukon, Mustang, and El Reno, Oklahoma.  Bank of Commerce has approximately $196 million in total assets, $148 million in loans, $170 million in deposits, and $22 million in equity capital. The bank was merged into BancFirst on November 23, 2015.

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 98 banking locations serving 54 communities across Oklahoma. More information can be found at www.bancfirst.com.

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)



2015


2015


2015


2015


2014



4th Qtr 


3rd Qtr 


2nd Qtr 


1st Qtr 


4th Qtr 


 Condensed Income Statements: 











 Net interest income 

$               50,075


$               46,876


$               46,215


$               45,626


$               47,319


 Provision for loan losses 

3,646


1,424


1,271


1,334


1,840


 Non-interest income:











Trust revenue

2,254


2,295


2,200


2,342


2,334


Service charges on deposits

15,077


14,910


14,312


13,352


14,345


Securities transactions

2,148


-


5,392


1,729


822


Income from sales of loans

434


545


549


440


426


Insurance commissions

3,176


4,427


3,120


4,068


3,262


Cash management

1,899


1,906


1,886


1,819


1,683


Other

1,485


1,241


1,256


1,546


1,430


Total noninterest income 

26,473


25,324


28,715


25,296


24,302













 Non-interest expense:











Salaries and employee benefits

28,938


28,746


27,886


27,513


27,071


Occupancy expense, net

2,926


3,051


2,700


2,835


3,117


Depreciation

2,565


2,488


2,449


2,464


2,439


Amortization of intangible assets

602


444


445


444


444


Data processing services

1,151


1,132


1,179


1,117


1,151


Net expense from other real estate owned

143


51


(184)


314


194


Marketing and business promotion

2,266


1,640


1,401


1,679


2,218


Deposit insurance

876


820


836


826


835


Other

9,544


7,980


8,717


7,731


9,417


Total noninterest expense 

49,011


46,352


45,429


44,923


46,886


 Income before income taxes 

23,891


24,424


28,230


24,665


22,895


 Income tax expense 

8,163


8,794


9,677


8,406


7,146


 Net income 

$               15,728


$               15,630


$               18,553


$               16,259


$               15,749


 Per Common Share Data: 











 Net income-basic 

$                   1.00


$                   1.01


$                   1.19


$                   1.05


$                   1.02


 Net income-diluted 

0.99


0.98


1.17


1.03


0.99


 Cash dividends declared

0.36


0.36


0.34


0.34


0.34


 Common shares outstanding 

15,597,446


15,591,530


15,562,298


15,512,545


15,504,513


 Average common shares outstanding -











   Basic

15,609,599


15,581,593


15,536,325


15,507,346


15,484,664


   Diluted

15,923,924


15,906,124


15,864,924


15,838,548


15,846,810


 Performance Ratios: 











 Return on average assets

0.94

%

0.97

%

1.14

%

1.01

%

0.96

%

 Return on average equity

9.51


9.64


11.79


10.65


10.31


 Net interest margin 

3.23


3.12


3.07


3.07


3.14


 Efficiency ratio 

64.03


64.20


60.63


63.34


65.46













 


BancFirst Corporation

Summary Financial Information

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




Twelve months ended

December 31,




2015


2014*


 Condensed Income Statements: 






 Net interest income 


$             188,792


$             181,351


 Provision for loan losses 


7,675


3,072


 Non-interest income:






Trust revenue


9,091


9,180


Service charges on deposits


57,651


56,389


Securities transactions


9,269


1,641


Income from sales of loans


1,968


1,813


Insurance commissions


14,791


14,642


Cash management


7,510


6,741


Other


5,528


6,007


Total noninterest income 


105,808


96,413








 Non-interest expense:






Salaries and employee benefits


113,083


108,640


Occupancy expense, net


11,512


11,610


Depreciation


9,966


9,595


Amortization of intangible assets


1,935


1,754


Data processing services


4,579


4,689


Net expense from other real estate owned


324


511


Marketing and business promotion


6,986


7,024


Deposit insurance


3,358


3,291


Other


33,972


36,407


Total noninterest expense 


185,715


183,521


 Income before income taxes 


101,210


91,171


 Income tax expense 


35,040


27,284


 Net income 


$               66,170


$               63,887


 Per Common Share Data: 






 Net income-basic 


$                   4.25


$                   4.14


 Net income-diluted 


4.17


4.04


 Cash dividends declared


1.40


1.30


 Common shares outstanding 


15,597,446


15,504,513


 Average common shares outstanding -






   Basic


15,559,059


15,430,773


   Diluted


15,886,245


15,794,403


 Performance Ratios: 






 Return on average assets


1.01

%

1.00

%

 Return on average stockholders' equity


10.38


10.92


 Net interest margin 


3.12


3.09


 Efficiency ratio 


63.04


66.07








 


BancFirst Corporation

Summary Financial Information

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




2015


2015


2015


2015


2014



4th Qtr


3rd Qtr 


 2nd Qtr 


 1st Qtr 


 4th Qtr


 Balance Sheet Data:






















 Total assets

$        6,692,829


$        6,406,096


$        6,498,898


$        6,570,120


$        6,574,972


 Interest-bearing deposits with banks

1,394,813


1,491,873


1,638,038


1,699,265


1,710,350


 Securities

554,449


507,858


537,319


550,125


524,783


 Total loans

4,244,273


3,972,075


3,871,919


3,857,742


3,860,831


 Allowance for loan losses

(41,666)


(40,970)


(42,621)


(41,557)


(40,889)


 Deposits

5,973,358


5,698,591


5,808,221


5,883,801


5,904,704


 Stockholders' equity

655,510


646,061


634,244


621,679


609,314


 Book value per common share

42.03


41.44


40.76


40.08


39.30


 Tangible book value per common share

37.73


37.99


37.27


36.52


35.71


 Balance Sheet Ratios:











 Average loans to deposits

69.62

%

67.88

%

65.95

%

65.85

%

65.42

%

 Average earning assets to total assets

92.84


93.15


93.11


92.97


92.82


 Average stockholders' equity to average assets

9.84


10.02


9.67


9.51


9.35


Asset Quality Data:











 Past due loans

$                1,841


$                2,061


$                1,311


$                1,498


$                1,135


 Nonaccrual loans

30,096


30,321


32,177


16,562


16,410


 Restructured loans

15,143


15,386


15,702


16,131


16,515


 Total nonperforming and restructured loans

47,080


47,768


49,190


34,191


34,060


 Other real estate owned and repossessed assets

8,214


7,863


7,521


6,418


8,079


 Total nonperforming and restructured assets

55,294


55,631


56,711


40,609


42,139


 Nonperforming and restructured loans to total loans

1.11

%

1.21

%

1.27

%

0.89

%

0.88

%

 Nonperforming and restructured assets to total assets

0.83


0.87


0.87


0.62


0.64


 Allowance to total loans

0.98


1.03


1.10


1.08


1.06


 Allowance to nonperforming and restructured loans

88.50


85.77


86.65


121.54


120.05


 Net charge-offs to average loans

0.07


0.08


0.01


0.01


0.01



































 

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, 2015


December 31, 2015





Interest


Average




Interest


Average



Average


Income/


Yield/


Average


Income/


Yield/



Balance


Expense


Rate


Balance


Expense


Rate


ASSETS













Earning assets:













  Loans

$          4,138,694


$           50,677


4.86

%

$        3,930,470


$         190,784


4.85

%

  Securities – taxable

466,519


1,343


1.14


486,851


5,492


1.13


  Securities – tax exempt

43,651


388


3.53


40,854


1,511


3.70


  Interest bearing deposits with banks

1,539,780


1,142


0.29


1,618,260


4,279


0.26


     Total earning assets

6,188,644


53,550


3.43


6,076,435


202,066


3.33















Nonearning assets:













  Cash and due from banks

182,716






177,479






  Interest receivable and other assets

335,595






320,247






  Allowance for loan losses

(41,192)






(41,522)






     Total nonearning assets

477,119






456,204






     Total assets

$          6,665,763






$        6,532,639



















LIABILITIES AND













  STOCKHOLDERS' EQUITY













Interest bearing liabilities:













  Transaction deposits                       

$             777,120


$               206


0.11

%

$           734,529


$               738


0.10

%

  Savings deposits

2,067,412


1,238


0.24


2,052,161


4,702


0.23


  Time deposits

736,532


1,205


0.65


732,183


4,811


0.66


  Short-term borrowings

3,049


1


0.16


2,766


4


0.15


Long-term borrowings

1,533


32


8.35


386


32


8.36


  Junior subordinated debentures

31,567


492


6.19


28,005


1,966


7.02


     Total interest bearing liabilities

3,617,213


3,174


0.35


3,550,030


12,253


0.35















Interest free funds:













  Noninterest bearing deposits

2,363,561






2,317,639






  Interest payable and other liabilities

28,776






27,328






  Stockholders' equity

656,213






637,642






     Total interest free  funds

3,048,550






2,982,609






     Total liabilities and stockholders' equity

$           6,665,763






$        6,532,639






Net interest income



$           50,376






$         189,813




Net interest spread





3.08

%





2.98

%

Effect of interest free funds





0.15

%





0.14

%

Net interest margin





3.23

%





3.12

%
















 

SOURCE BancFirst



RELATED LINKS

https://www.bancfirst.com