BancFirst Corporation Reports First Quarter Earnings

Rhea-AI Summary

BancFirst Corporation (NASDAQ GS:BANF) reported a significant increase in net income for the first quarter of 2021, totaling $42.5 million or $1.27 diluted earnings per share, compared to $22.6 million or $0.68 per share a year prior. The company recorded no provision for credit losses, a notable improvement from $19.6 million in Q1 2020. Net interest income rose to $77.2 million, aided by loan growth and PPP fees. Total assets increased to $10.5 billion with deposits at $9.4 billion, largely due to government stimulus.

Positive

• Net income increased to $42.5 million, up from $22.6 million year-over-year.
• Diluted earnings per share rose to $1.27 from $0.68.
• No provision for credit losses compared to $19.6 million last year.
• Net interest income grew to $77.2 million, driven by loan growth and PPP fees.
• Total assets reached $10.5 billion, an increase of $1.3 billion from the prior quarter.
• Deposits increased to $9.4 billion, a growth of $1.3 billion attributed to government stimulus.

Negative

• Net interest margin decreased to 3.36% from 3.82% year-over-year.
• Loans decreased by $68.1 million from December 31, 2020.

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		%

 

View original content:http://www.prnewswire.com/news-releases/bancfirst-corporation-reports-first-quarter-earnings-301269984.html

SOURCE BancFirst

FAQ

What were BancFirst's earnings results for Q1 2021?

BancFirst reported a net income of $42.5 million or $1.27 diluted earnings per share for Q1 2021.

How did BancFirst's provision for credit losses change in Q1 2021?

BancFirst recorded no provision for credit losses in Q1 2021, compared to $19.6 million in Q1 2020.

What was the total assets of BancFirst as of March 31, 2021?

As of March 31, 2021, BancFirst's total assets were $10.5 billion.

How much did BancFirst's deposits increase by in Q1 2021?

BancFirst's deposits increased by $1.3 billion to $9.4 billion in Q1 2021.

What is the impact of PPP on BancFirst's financial results?

PPP fees contributed approximately $9.5 million to BancFirst's net interest income in Q1 2021.