BANCFIRST CORPORATION REPORTS SECOND QUARTER EARNINGS

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BancFirst Corporation (NASDAQ GS:BANF) reported a net income of $44.7 million, or $1.34 per diluted share, for Q2 2022, a decrease from $48.2 million, or $1.45 per share, in Q2 2021. For the first half of 2022, net income was $80.6 million, down from $90.7 million in 2021. Net interest income rose to $86.9 million, aided by higher short-term interest rates, although the net interest margin decreased to 3.05%. Noninterest income fell to $42.6 million, impacted by a prior year gain. Total assets grew to $12.5 billion, with deposits up $3.1 billion, reflecting strong growth and acquisition of Worthington National Bank.

Positive

• Net interest income increased to $86.9 million from $82.4 million year-on-year.
• Total assets rose to $12.5 billion, a significant increase since December 2021.
• Deposits increased by $3.1 billion, reflecting strong customer confidence and growth.

Negative

• Net income decreased to $44.7 million from $48.2 million year-on-year.
• Noninterest income dropped to $42.6 million from $44.6 million last year, influenced by a prior gain.
• The net interest margin decreased to 3.05% from 3.32% due to lower PPP fees.

OKLAHOMA CITY, July 21, 2022 /PRNewswire/ -- BancFirst Corporation (NASDAQ GS:BANF) reported net income of $44.7 million, or $1.34 diluted earnings per share, for the second quarter of 2022 compared to net income of $48.2 million, or $1.45 diluted earnings per share, for the second quarter of 2021. Net income for the six months ended June 30, 2022 was $80.6 million, or $2.42 per share, compared to $90.7 million, or $2.72 per share, for the first half of 2021.

The Company's net interest income for the second quarter of 2022 increased to $86.9 million from $82.4 million for the quarter ended June 30, 2021. Rising short term interest rates contributed to the increase. The net interest margin for the quarter was 3.05% and 3.32% a year ago. The margin for the second quarter of 2021 was positively impacted by higher PPP fees, which were $11.9 million compared to $400,000 for the current quarter.  

For the second quarter of 2022 the Company recorded a provision for credit losses of $501,000 compared to a net benefit from reversal of provisions of $9.9 million for the quarter ended June 30, 2021. Provisions for credit losses have stabilized in 2022 after the economic downturn and recovery from the effects of the COVID pandemic.

Noninterest income for the quarter totaled $42.6 million down from $44.6 million last year. The decrease in noninterest income in 2022 was attributable to a purchase gain of $6.0 million in the second quarter of 2021. Total noninterest expense for the current quarter was relatively flat at $73.7 million but included a gain of $3.1 million from the sale of the Company's prior headquarters that was carried in other real estate owned, as well as a write down of an equity investment of $1.5 million.

The Company's effective tax rate was 19.1% compared to 23.4% for the second quarter of 2021. The lower effective tax rate was driven by the exercising of stock options during the quarter that produced higher tax deductions for compensation, and a lower state income tax rate.

At June 30, 2022, the Company's total assets were $12.5 billion compared to $9.4 billion at December 31, 2021. Deposits totaled $11.1 billion, an increase of $3.1 billion from December 31, 2021. The balance sheet growth was driven by the return of customer deposits from off-balance sheet sweep accounts, continued deposit growth and the acquisition of Worthington National Bank. Loans totaled $6.6 billion compared to $6.2 billion at December 31, 2021. Loan growth during the first two quarters of 2022, net of acquired loans and PPP, was $247 million, or 4%. The Company's total stockholders' equity was $1.2 billion, an increase of $14 million over December 31, 2021.

Asset quality remained strong as nonaccrual loans continued to decline, totaling $13.7 million, which represented 0.21% of total loans at June 30, 2022, down from 0.34% at year-end 2021. The allowance for credit losses to total loans stood at 1.31% at June 30, 2022 down from 1.36% at the end of 2021.

BancFirst Corporation CEO David Harlow commented, "The Company performed well in the second quarter with meaningful core margin expansion as a result of the 150 basis points of increase in the fed funds rate since tightening began in March. All eyes continue to be on the Fed and to what degree its policy will be successful in bringing inflation under control without sending the economy into recession. Regardless of the ultimate outcome, the Company is well positioned with a strong capital base, a credit culture that has outperformed through various cycles, and an Oklahoma/DFW footprint positioned for long-term, sustainable growth."

BancFirst Corporation (the Company) is an Oklahoma based financial services holding company. The Company operates three subsidiary banks, BancFirst, an Oklahoma state-chartered bank with 107 banking locations serving 59 communities across Oklahoma, Pegasus Bank, with three banking locations in Dallas, TX and Worthington National Bank with one location in Arlington, Texas, one location in Colleyville, Texas and two Fort Worth, Texas locations. 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)
		2022		2022		2021		2021		2021
		2nd Qtr		1st Qtr		4th Qtr		3rd Qtr		2nd Qtr
Condensed Income Statements:
Net interest income		$                    86,867		$                    75,507		$                    75,898		$                    80,190		$                    82,363
Provision for (benefit from) credit losses		501		2,936		(224)		1,483		(9,949)
Non-interest income:
Trust revenue		3,949		3,506		3,336		3,210		3,264
Service charges on deposits		21,618		21,375		22,095		21,706		20,524
Securities transactions		-		(3,915)		630		150		172
Income from sales of loans		1,256		1,666		1,545		1,594		2,133
Insurance commissions		5,302		7,427		6,075		6,666		5,015
Cash management		4,447		3,131		3,115		3,127		3,068
Other		6,026		10,460		8,897		3,333		10,442
Total noninterest income		42,598		43,650		45,693		39,786		44,618
Non-interest expense:
Salaries and employee benefits		45,284		43,932		42,887		42,267		41,992
Occupancy expense, net		4,734		4,403		4,521		5,086		4,528
Depreciation		4,647		4,775		4,708		4,207		4,133
Amortization of intangible assets		857		831		759		755		809
Data processing services		1,975		1,805		1,663		1,734		1,660
Net (income) expense from other real estate owned		(510)		1,794		2,412		1,810		3,357
Marketing and business promotion		1,591		2,073		2,080		1,796		1,648
Deposit insurance		1,196		1,128		968		846		766
Other		13,943		11,771		16,783		11,713		15,130
Total noninterest expense		73,717		72,512		76,781		70,214		74,023
Income before income taxes		55,247		43,709		45,034		48,279		62,907
Income tax expense		10,540		7,794		6,866		9,529		14,715
Net income		$                    44,707		$                    35,915		$                    38,168		$                    38,750		$                    48,192
Per Common Share Data:
Net income-basic		$                        1.36		$                        1.10		$                        1.17		$                        1.18		$                        1.47
Net income-diluted		1.34		1.08		1.15		1.16		1.45
Cash dividends declared		0.36		0.36		0.36		0.36		0.34
Common shares outstanding		32,781,198		32,725,587		32,603,118		32,572,217		32,784,513
Average common shares outstanding -
Basic		32,749,752		32,666,916		32,585,784		32,744,104		32,779,227
Diluted		33,418,482		33,315,333		33,180,680		33,267,955		33,405,923
Performance Ratios:
Return on average assets		1.42 %		1.22 %		1.33 %		1.37 %		1.79 %
Return on average stockholders' equity		15.14		12.33		13.02		13.42		17.42
Net interest margin		3.05		2.78		2.87		3.09		3.32
Efficiency ratio		56.94		60.85		63.15		58.52		58.29

  

 

Summary Financial Information
(Dollars in thousands, except per share and share data - Unaudited)
		Six months ended
		June 30,
		2022		2021
Condensed Income Statements:
Net interest income		$                  162,374		$                  159,569
Provision for (benefit from) credit losses		3,437		(9,949)
Non-interest income:
Trust revenue		7,455		6,366
Service charges on deposits		42,993		39,624
Securities transactions		(3,915)		267
Income from sales of loans		2,922		4,143
Insurance commissions		12,729		11,004
Cash management		7,578		6,071
Other		16,486		17,078
Total noninterest income		86,248		84,553
Non-interest expense:
Salaries and employee benefits		89,216		81,569
Occupancy expense, net		9,137		8,876
Depreciation		9,422		8,010
Amortization of intangible assets		1,688		1,602
Data processing services		3,780		3,338
Net expense from other real estate owned		1,284		4,867
Marketing and business promotion		3,664		3,527
Deposit insurance		2,324		1,642
Other		25,714		25,555
Total noninterest expense		146,229		138,986
Income before income taxes		98,956		115,085
Income tax expense		18,334		24,373
Net income		$                    80,622		$                    90,712
Per Common Share Data:
Net income-basic		$                        2.46		$                        2.77
Net income-diluted		2.42		2.72
Cash dividends declared		0.72		0.68
Common shares outstanding		32,781,198		32,784,513
Average common shares outstanding -
Basic		32,708,563		32,768,102
Diluted		33,366,799		33,407,693
Performance Ratios:
Return on average assets		1.32 %		1.74 %
Return on average stockholders' equity		13.74		16.67
Net interest margin		2.92		3.34
Efficiency ratio		58.82		56.93

 

 

	BancFirst Corporation
	Summary Financial Information
	(Dollars in thousands, except per share and share data - Unaudited)
			2022		2022		2021		2021		2021
			2nd Qtr		1st Qtr		4th Qtr		3rd Qtr		2nd Qtr
	Balance Sheet Data:
	Total assets		$ 12,530,073		$ 12,624,431		$   9,405,612		$ 11,302,771		$ 11,015,287
	Interest-bearing deposits with banks		3,590,311		3,816,532		1,821,203		3,836,809		3,373,099
	Debt securities		1,205,894		1,211,668		534,500		529,484		563,771
	Total loans		6,620,643		6,504,477		6,194,218		6,037,886		6,207,262
	Allowance for credit losses		(86,935)		(87,239)		(83,936)		(86,463)		(83,963)
	Deposits		11,142,688		11,250,971		8,091,914		9,992,044		9,728,389
	Stockholders' equity		1,185,695		1,167,802		1,171,734		1,146,874		1,131,591
	Book value per common share		36.17		35.68		35.94		35.21		34.52
	Tangible book value per common share (non-GAAP)(1)		29.90		29.51		30.80		30.04		29.35
	Balance Sheet Ratios:
	Average loans to deposits		58.66 %		59.72 %		60.16 %		61.56 %		65.36 %
	Average earning assets to total assets		90.89		91.92		92.13		92.13		92.01
	Average stockholders' equity to average assets		9.40		9.86		10.19		10.22		10.25
	Asset Quality Data:
	Past due loans		$          4,771		$          6,360		$          4,964		$          5,186		$          4,386
	Nonaccrual loans (5)		13,712		17,453		20,892		26,607		29,802
	Restructured loans		2,174		2,345		3,665		7,073		7,485
	Total nonperforming and restructured loans		20,657		26,158		29,521		38,866		41,673
	Other real estate owned and repossessed assets		39,209		39,729		39,553		39,060		40,183
	Total nonperforming and restructured assets		59,866		65,887		69,074		77,926		81,856
	Nonaccrual loans to total loans		0.21 %		0.27 %		0.34 %		0.44 %		0.48 %
	Nonaccrual loans to total Non-PPP loans (non-GAAP)(3)		0.21		0.27		0.34		0.46		0.51
	Nonperforming and restructured loans to total loans		0.31		0.40		0.48		0.64		0.67
	Nonperforming and restructured loans to total Non-PPP loans (non-GAAP)(3)		0.31		0.40		0.48		0.67		0.71
	Nonperforming and restructured assets to total assets		0.48		0.52		0.73		0.69		0.74
	Allowance to total loans		1.31		1.34		1.36		1.43		1.35
	Allowance to total Non-PPP loans (non-GAAP)(3)		1.31		1.35		1.37		1.48		1.44
	Allowance to nonaccrual loans		634.01		499.83		401.76		324.96		281.73
	Allowance to nonperforming and restructured loans		420.84		333.51		284.33		222.46		201.48
	Net charge-offs to average loans		0.01		0.00		0.03		0.01		0.06
	Reconciliation of Tangible Book Value Per Common Share (non-GAAP)(2):
	Stockholders' equity		$   1,185,695		$   1,167,802		$   1,171,734		$   1,146,874		$   1,131,591
	Less goodwill		183,639		176,563		149,922		149,922		149,922
	Less intangible assets, net		21,743		25,456		17,566		18,325		19,283
	Tangible stockholders' equity (non-GAAP)		$      980,313		$      965,783		$   1,004,246		$      978,627		$      962,386
	Common shares outstanding		32,781,198		32,725,587		32,603,118		32,572,217		32,784,513
	Tangible book value per common share (non-GAAP)		$          29.90		$          29.51		$          30.80		$          30.04		$          29.35
	(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		$   6,620,643		$   6,504,477		$   6,194,218		$   6,037,886		$   6,207,262
	Less PPP loans		3,206		30,605		80,412		201,208		368,620
	Total Non-PPP loans (non-GAAP)		$   6,617,437		$   6,473,872		$   6,113,806		$   5,836,678		$   5,838,642
	Nonaccrual loans (5)		13,712		17,453		20,892		26,607		29,802
	Nonaccrual loans to total Non-PPP loans (non-GAAP)		0.21 %		0.27 %		0.34 %		0.46 %		0.51 %
	Total nonperforming and restructured loans		20,657		26,158		29,521		38,866		41,673
	Nonperforming and restructured loans to total Non-PPP loans (non-GAAP)		0.31 %		0.40 %		0.48 %		0.67 %		0.71 %
	Allowance for credit losses		(86,935)		(87,239)		(83,936)		(86,463)		(83,963)
	Allowance to total Non-PPP loans (non-GAAP)		1.31 %		1.35 %		1.37 %		1.48 %		1.44 %
	(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 $2.1 million of nonaccrual loans at June 30, 2022.

 

 

BancFirst Corporation Consolidated Average Balance Sheets And Interest Margin Analysis Taxable Equivalent Basis (Dollars in thousands - Unaudited)
		Three Months Ended						Six Months Ended
		June 30, 2022						June 30, 2022
				Interest		Average				Interest		Average
		Average		Income/		Yield/		Average		Income/		Yield/
		Balance		Expense		Rate		Balance		Expense		Rate
ASSETS
Earning assets:
Loans		$        6,566,437		$             78,836		4.82	%	$        6,463,687		$           151,902		4.74	%
Debt securities – taxable		1,192,371		5,142		1.73		1,149,037		8,923		1.57
Debt securities – tax exempt		3,682		28		3.08		4,225		62		2.95
Interest bearing deposits with banks and FFS		3,686,883		7,605		0.83		3,618,260		9,363		0.52
Total earning assets		11,449,373		91,611		3.21		11,235,209		170,250		3.06
Nonearning assets:
Cash and due from banks		291,470						280,304
Interest receivable and other assets		943,850						864,988
Allowance for credit losses		(87,434)						(86,337)
Total nonearning assets		1,147,886						1,058,955
Total assets		$      12,597,259						$      12,294,164
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest bearing liabilities:
Transaction deposits		$           977,424		$                  212		0.09	%	$           959,898		$                  403		0.08	%
Savings deposits		4,328,065		2,733		0.25		4,249,720		3,874		0.18
Time deposits		665,660		641		0.39		659,907		1,290		0.39
Short-term borrowings		6,716		12		0.72		4,599		13		0.56
Subordinated debt		86,006		1,031		4.81		85,999		2,061		4.83
Total interest bearing liabilities		6,063,871		4,629		0.31		5,960,123		7,641		0.26
Interest free funds:
Noninterest bearing deposits		5,223,063						5,053,996
Interest payable and other liabilities		126,279						97,146
Stockholders' equity		1,184,046						1,182,899
Total interest free  funds		6,533,388						6,334,041
Total liabilities and stockholders' equity		$      12,597,259						$      12,294,164
Net interest income				$             86,982						$           162,609
Net interest spread						2.90	%					2.80	%
Effect of interest free funds						0.15	%					0.12	%
Net interest margin						3.05	%					2.92	%

 

 

 

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SOURCE BancFirst

FAQ

What was BancFirst's net income for Q2 2022?

BancFirst reported a net income of $44.7 million for Q2 2022.

How did BancFirst's earnings per share change from Q2 2021 to Q2 2022?

Earnings per share decreased from $1.45 in Q2 2021 to $1.34 in Q2 2022.

What were BancFirst's total assets as of June 30, 2022?

Total assets for BancFirst were $12.5 billion as of June 30, 2022.

What contributed to the increase in BancFirst's net interest income for Q2 2022?

The increase in net interest income was primarily due to rising short-term interest rates.

How much did BancFirst's deposits increase by from December 2021 to June 2022?

Deposits increased by $3.1 billion from December 31, 2021.