BancFirst Corporation Reports Fourth Quarter Earnings
01/21/2021 - 04:30 PM
OKLAHOMA CITY , Jan. 21, 2021 /PRNewswire/ -- BancFirst Corporation (NASDAQ GS:BANF) reported net income of $35.4 million $1.06 diluted earnings per share, for the fourth quarter of 2020 compared to net income of $35.5 million $1.07 diluted earnings per share, for the fourth quarter of 2019. Net income for the twelve months ended December 31, 2020 was $99.6 million $3.00 diluted earnings per share, compared to $134.9 million $4.05 diluted earnings per share, for the year ended December 31, 2019 . The results for 2020 were negatively impacted by a higher provision for credit losses. Net income for the year ended December 31, 2020 includes the entire year of net income of Pegasus Bank in Dallas, Texas , which was acquired on August 15, 2019 , and the income and expenses associated with the purchase of assets and assumption of liabilities on March 5, 2020 , from The Citizens State Bank of Okemah . The results for the prior year include Pegasus Bank acquisition related expenses of approximately $3.1 million
The provision for credit losses for the fourth quarter of 2020 was $5.0 million $1.4 million $57.7 million David Rainbolt commented, "Our provision for credit losses was substantially reduced from previous quarters due to improvements in projected outcomes for the economic effects of the pandemic. The rollout of the vaccine and extension of the Cares Act stimulus, combined with improved energy prices and jobs data, justify a cessation to the outsized provisions seen in prior quarters."
The Company's net interest income for the fourth quarter of 2020 increased to $79.5 million $73.9 million $8.0 million 3.54% compared to 3.78% a year ago. The Company had net charge-offs for the quarter of 0.30% of average loans, compared to net charge-offs of 0.06% of average loans for the fourth quarter of 2019. Noninterest income for the quarter totaled $35.4 million $35.5 million $65.6 million $66.3 million $2.3 million 20.3% compared to 15.0% for the fourth quarter of 2019. The effective tax rate for the fourth quarter of 2019 was lower due to the purchase of tax credits during the quarter.
At December 31, 2020 , the Company's total assets were $9.2 billion $646.6 million December 31, 2019 . Securities of $555.2 million $63.6 million December 31, 2019 . Loans totaled $6.4 billion $775.1 million December 31, 2019 . Deposits totaled $8.1 billion $581.1 million December 31, 2019 total. The increase in assets, loans and deposits were primarily related to the Paycheck Protection Program (PPP) and other government stimulus. At December 31, 2020 , the balance of the Paycheck Protection Program loans was $652.7 million $1.1 billion $62.9 million December 31, 2019 . Off-balance sheet sweep accounts were $2.7 billion December 31, 2020 compared to $2.0 billion December 31, 2019 .
Nonaccrual loans represented 0.58% of total loans at December 31, 2020 , up from 0.32% at year-end 2019, but down from 1.24% at September 30, 2020 . Non-performing assets represented 0.90% of total assets at December 31, 2020 , up from 0.63% at December 31, 2019 as a result of loan migration from non-accrual loans to other real estate owned (OREO) during the fourth quarter of 2020. The allowance to total loans was 1.42% at December 31, 2020 , up from 0.96% at year-end 2019. The allowance to nonaccrual loans was approximately 243% at December 31, 2020 , compared to 302% at year-end 2019, and 129% at September 30, 2020 .
BancFirst Corporation CEO David Harlow commented, "In a very challenging year the Company was able to report earnings of $3.00 per diluted share while substantially building loan loss reserves, increasing our dividend for the 27th consecutive year and growing total stockholders' equity and tangible book value per share. The outlook for 2021 is certainly better today than we would have projected at the outset of the pandemic; however, many consumers and certain sectors of the economy continue to struggle and the ultimate outcome for many businesses when the stimulus subsides is far from certain."
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 107 banking locations serving 59 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)
2020
2020
2020
2020
2019
4th Qtr
3rd Qtr
2nd Qtr
1st Qtr
4th Qtr
Condensed Income Statements:
Net interest income
$
79,535
$
75,852
$
77,208
$
74,073
$
73,939
Provision for credit losses
4,992
18,740
19,333
19,583
1,412
Non-interest income:
Trust revenue
2,976
3,131
3,368
3,655
3,682
Service charges on deposits
19,796
19,078
16,760
18,804
19,938
Securities transactions
156
—
(595)
50
(9)
Income from sales of loans
1,852
1,873
1,561
781
1,089
Insurance commissions
5,680
5,197
4,443
5,676
5,076
Cash management
3,135
3,701
4,255
4,320
4,258
Other
1,825
1,595
2,290
1,859
1,490
Total noninterest income
35,420
34,575
32,082
35,145
35,524
Non-interest expense:
Salaries and employee benefits
40,750
41,995
42,226
39,756
40,375
Occupancy expense, net
4,533
4,503
3,839
3,546
3,738
Depreciation
3,779
3,795
3,544
3,491
3,355
Amortization of intangible assets
915
968
968
964
1,007
Data processing services
1,763
1,669
1,629
1,692
1,634
Net expense from other real estate owned
420
196
(12)
(2,135)
(424)
Marketing and business promotion
1,671
1,485
1,485
2,355
2,327
Deposit insurance
857
723
365
136
147
Other
10,923
10,749
10,607
11,580
14,137
Total noninterest expense
65,611
66,083
64,651
61,385
66,296
Income before income taxes
44,352
25,604
25,306
28,250
41,755
Income tax expense
8,994
4,714
4,576
5,642
6,248
Net income
$
35,358
$
20,890
$
20,730
$
22,608
$
35,507
Per Common Share Data:
Net income-basic
$
1.08
$
0.64
$
0.64
$
0.69
$
1.09
Net income-diluted
1.06
0.63
0.63
0.68
1.07
Cash dividends declared
0.34
0.34
0.32
0.32
0.32
Common shares outstanding
32,719,852
32,679,191
32,662,691
32,646,691
32,694,268
Average common shares outstanding -
Basic
32,690,296
32,668,789
32,651,262
32,679,587
32,673,438
Diluted
33,275,550
33,168,938
33,075,493
33,287,359
33,366,848
Performance Ratios:
Return on average assets
1.45
%
0.86
%
0.88
%
1.07
%
1.66
%
Return on average stockholders' equity
13.25
7.89
7.99
8.87
13.76
Net interest margin
3.54
3.40
3.54
3.82
3.78
Efficiency ratio
57.08
59.84
59.16
56.20
60.56
BancFirst Corporation
Summary Financial Information
(Dollars in thousands, except per share and share data - Unaudited)
Twelve months ended
December 31,
2020
2019
Condensed Income Statements:
Net interest income
$
306,668
$
281,921
Provision for credit losses
62,648
8,287
Non-interest income:
Trust revenue
13,130
13,599
Service charges on deposits
74,438
76,581
Securities transactions
(389)
812
Income from sales of loans
6,067
3,619
Insurance commissions
20,996
20,296
Cash management
15,411
16,866
Other
7,569
5,456
Total noninterest income
137,222
137,229
Non-interest expense:
Salaries and employee benefits
164,727
153,024
Occupancy expense, net
16,421
12,704
Depreciation
14,609
12,623
Amortization of intangible assets
3,815
3,366
Data processing services
6,753
5,843
Net expense from other real estate owned
(1,531)
(785)
Marketing and business promotion
6,996
8,554
Deposit insurance
2,081
1,143
Other
43,859
44,829
Total noninterest expense
257,730
241,301
Income before income taxes
123,512
169,562
Income tax expense
23,926
34,683
Net income
$
99,586
$
134,879
Per Common Share Data:
Net income-basic
$
3.05
$
4.13
Net income-diluted
3.00
4.05
Cash dividends declared
1.32
1.24
Common shares outstanding
32,719,852
32,694,268
Average common shares outstanding -
Basic
32,672,522
32,639,396
Diluted
33,210,952
33,329,844
Performance Ratios:
Return on average assets
1.06
%
1.69
%
Return on average stockholders' equity
9.52
14.04
Net interest margin
3.57
3.85
Efficiency ratio
58.06
57.57
BancFirst Corporation
Summary Financial Information
(Dollars in thousands, except per share and share data - Unaudited)
2020
2020
2020
2020
2019
4th Qtr
3rd Qtr
2nd Qtr
1st Qtr
4th Qtr
Balance Sheet Data:
Total assets
$
9,212,357
$
9,618,868
$
9,612,453
$
8,669,096
$
8,565,758
Interest-bearing deposits with banks
1,336,394
1,609,462
1,583,116
1,356,826
1,646,238
Debt securities
555,196
596,941
608,031
591,987
491,626
Total loans
6,448,225
6,660,694
6,696,856
6,006,065
5,673,144
Allowance for credit losses
(91,366)
(106,126)
(89,500)
(70,080)
(54,238)
Deposits
8,064,704
8,495,891
8,486,671
7,573,200
7,483,635
Stockholders' equity
1,067,885
1,043,752
1,034,199
1,023,380
1,004,989
Book value per common share
32.64
31.94
31.66
31.35
30.74
Tangible book value per common share (non-GAAP)(1)
27.47
26.74
26.43
26.09
25.50
Balance Sheet Ratios:
Average loans to deposits
77.02
%
78.55
%
79.78
%
77.75
%
75.83
%
Average earning assets to total assets
91.82
91.99
92.23
91.51
91.50
Average stockholders' equity to average assets
10.91
10.90
10.96
12.02
12.04
Asset Quality Data:
Past due loans
$
4,802
$
6,412
$
5,382
$
10,065
$
11,834
Nonaccrual loans (5)
37,545
82,385
49,477
45,181
17,965
Restructured loans
7,784
2,837
3,213
3,158
18,010
Total nonperforming and restructured loans
50,131
91,634
58,072
58,404
47,809
Other real estate owned and repossessed assets
32,480
4,939
4,948
6,001
6,073
Total nonperforming and restructured assets
82,611
96,573
63,020
64,405
53,882
Nonaccrual loans to total loans
0.58
%
1.24
%
0.74
%
0.75
%
0.32
%
Nonaccrual loans to total Non-PPP loans (non-GAAP)(3)
0.65
1.41
0.84
0.75
0.32
Nonperforming and restructured loans to total loans
0.78
1.38
0.87
0.97
0.84
Nonperforming and restructured loans to total Non-PPP loans (non-GAAP)(3)
0.86
1.57
0.99
0.97
0.84
Nonperforming and restructured assets to total assets
0.90
1.00
0.66
0.74
0.63
Allowance for credit losses to total loans
1.42
1.59
1.34
1.17
0.96
Allowance for credit losses to total Non-PPP loans (non-GAAP)(3)
1.58
1.82
1.52
1.17
0.96
Allowance for credit losses to nonaccrual loans
243.35
128.82
180.89
155.11
301.91
Allowance for credit losses to nonperforming and restructured loans
182.26
115.81
154.12
119.99
113.45
Net charge-offs to average loans
0.30
0.03
0.00
0.02
0.06
Reconciliation of Tangible Book Value Per Common Share (non-GAAP)(2):
Stockholders' equity
$
1,067,885
$
1,043,752
$
1,034,199
$
1,023,380
$
1,004,989
Less goodwill
149,922
149,922
149,922
149,923
148,604
Less intangible assets, net
18,999
19,914
20,882
21,850
22,608
Tangible stockholders' equity (non-GAAP)
$
898,964
$
873,916
$
863,395
$
851,607
$
833,777
Common shares outstanding
32,719,852
32,679,191
32,662,691
32,646,691
32,694,268
Tangible book value per common share (non-GAAP)
$
27.47
$
26.74
$
26.43
$
26.09
$
25.50
(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
$
6,448,225
$
6,660,694
$
6,696,856
$
6,006,065
$
5,673,144
Less PPP loans
652,693
831,703
825,093
—
—
Total Non-PPP loans (non-GAAP)
$
5,795,532
$
5,828,991
$
5,871,763
$
6,006,065
$
5,673,144
Nonaccrual loans (5)
37,545
82,385
49,477
45,181
17,965
Nonaccrual loans to total Non-PPP loans (non-GAAP)
0.65
%
1.41
%
0.84
%
0.75
%
0.32
%
Total nonperforming and restructured loans
50,131
91,634
58,072
58,404
47,809
Nonperforming and restructured loans to total Non-PPP loans (non-GAAP)
0.86
%
1.57
%
0.99
%
0.97
%
0.84
%
Allowance for credit losses
(91,366)
(106,126)
(89,500)
(70,080)
(54,238)
Allowance for credit losses to total Non-PPP loans (non-GAAP)
1.58
%
1.82
%
1.52
%
1.17
%
0.96
%
(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 $7.8 million of nonaccrual loans at December 31, 2020.
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, 2020
December 31, 2020
Interest
Average
Interest
Average
Average
Income/
Yield/
Average
Income/
Yield/
Balance
Expense
Rate
Balance
Expense
Rate
ASSETS
Earning assets:
Loans
$
6,599,933
$
79,815
4.80
%
$
6,432,455
$
312,195
4.84
%
Securities – taxable
558,046
1,926
1.37
556,931
8,591
1.54
Securities – tax exempt
30,131
131
1.73
28,969
616
2.12
Interest bearing deposits with banks and FFS
1,719,900
463
0.11
1,562,383
6,049
0.39
Total earning assets
8,908,010
82,335
3.67
8,580,738
327,451
3.81
Nonearning assets:
Cash and due from banks
252,082
220,995
Interest receivable and other assets
638,173
611,966
Allowance for credit losses
(97,046)
(76,501)
Total nonearning assets
793,209
756,460
Total assets
$
9,701,219
$
9,337,198
LIABILITIES AND STOCKHOLDERS ' EQUITY
Interest bearing liabilities:
Transaction deposits
$
711,266
$
131
0.07
%
$
744,632
$
940
0.13
%
Savings deposits
3,404,226
903
0.11
3,273,903
9,385
0.29
Time deposits
684,992
1,434
0.83
695,637
8,147
1.17
Short-term borrowings
1,075
-
0.07
2,745
8
0.30
Long-term borrowings
-
-
-
1,107
-
-
Junior subordinated debentures
26,804
492
7.29
26,804
1,966
7.31
Total interest bearing liabilities
4,828,363
2,960
0.24
4,744,828
20,446
0.43
Interest free funds:
Noninterest bearing deposits
3,768,493
3,503,187
Interest payable and other liabilities
45,673
46,048
Stockholders' equity
1,058,690
1,043,135
Total interest free funds
4,872,856
4,592,370
Total liabilities and stockholders' equity
$
9,701,219
$
9,337,198
Net interest income
$
79,375
$
307,005
Net interest spread
3.43
%
3.38
%
Effect of interest free funds
0.11
%
0.19
%
Net interest margin
3.54
%
3.57
%
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SOURCE BancFirst
