BANCFIRST CORPORATION REPORTS SECOND QUARTER EARNINGS

OKLAHOMA CITY, July 20, 2023 /PRNewswire/ -- BancFirst Corporation (NASDAQ GS: BANF) reported net income of $55.0 million, or $1.64 diluted earnings per share, for the second quarter of 2023 compared to net income of $44.7 million, or $1.34 diluted earnings per share, for the second quarter of 2022. Net income for the six months ended June 30, 2023 was $112.5 million, or $3.36 per share, compared to $80.6 million, or $2.42 per share, for the first half of 2022.

The Company's net interest income for the second quarter of 2023 increased to $105.9 million compared to $86.9 million for the quarter ended June 30, 2022. Rising short-term interest rates and modest loan growth drove the increase. The net interest margin for the quarter was 3.87% compared to 3.89% in the first quarter and 3.05% a year ago. For the second quarter of 2023, the Company recorded a provision for credit losses of $2.8 million driven by loan growth, compared to $501,000 for the second quarter of 2022.

Noninterest income for the quarter totaled $48.0 million, compared to $42.6 million last year. The growth in noninterest income was mostly attributable to an increase in sweep fees due to increased sweep account balances. Noninterest income for the second quarter of 2022 included $578,000 of income from an equity interest received from a prior loan settlement. The equity interest was sold during the second quarter of 2023.

Noninterest expense for the quarter increased to $81.1 million compared to $73.7 million last year. Higher noninterest expense was primarily related to an increase in salaries and employee benefits of $4.5 million. In addition, noninterest expense was lower in the second quarter last year due to a gain from the sale of the Company's prior headquarters that was netted against expenses.

The Company's effective tax rate for the period was 21.4% compared to 19.1% for the second quarter of 2022. During the first quarter of 2023, the Company adopted ASU 2023-02 which increased income tax expense. The lower effective tax rate in 2022 was also driven by the exercising of stock options during the quarter.

At June 30, 2023, the Company's total assets were $12.0 billion, a decrease of $367.6 million from December 31, 2022. Loans totaled $7.3 billion, an increase of $357.7 million from December 31, 2022. Liquidity remained solid with the quarterly average loans to deposits ratio at June 30, 2023 rising to 69.9% from 62.3% at year-end. Deposits totaled $10.5 billion, a decrease of $499.0 million from December 31, 2022 as deposits generally flowed from demand accounts into the Company's off balance sheet sweep product. Sweep accounts totaled $4.3 billion at June 30, 2023 up $567.7 million from December 31, 2022. The Company continues to fund itself with customer deposits and does not use brokered or reciprocal deposits. The Company's total stockholders' equity was $1.3 billion, an increase of $90.0 million over December 31, 2022.

Asset quality remained strong with nonaccrual loans of $18.0 million, representing 0.25% of total loans at June 30, 2023 compared to 0.22% at year-end 2022. The allowance for credit losses to total loans was 1.33% at both June 30, 2023 and December 31, 2022. Net charge-offs were 0.01% of average loans for both the second quarter and year-to-date of both 2023 and 2022.

BancFirst Corporation CEO David Harlow commented, "Rapidly rising short-term interest rates and the quantitative tightening by the Federal Reserve have caused shrinkage in money supply and somewhat enhanced expectation of a slowdown in the economy. However, the Company reported a good quarter at $1.64 diluted earnings per share and we continue to be well positioned with top-tier liquidity supported by community-based deposits, strong capital, and solid credit quality. Our allowance for credit losses remained consistent with recent reporting as our forward outlook on the regional economy did not change during the quarter."

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 106 banking locations serving 59 communities across Oklahoma, Pegasus Bank, with 3 banking locations in the Dallas Metroplex area and Worthington Bank with 4 locations in the Dallas-Fort Worth Metroplex area. 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)
		2023		2023		2022		2022		2022
		2nd Qtr		1st Qtr		4th Qtr		3rd Qtr		2nd Qtr
Condensed Income Statements:
Net interest income		$                 105,926		$                 109,156		$                 110,352		$                 100,947		$                   86,867
Provision for credit losses		2,824		2,322		3,776		2,863		501
Noninterest income:
Trust revenue		4,590		4,222		4,065		4,125		3,949
Service charges on deposits		22,268		21,231		21,603		22,161		21,618
Securities transactions		110		(213)		1,116		966		-
Income from sales of loans		757		604		657		969		1,256
Insurance commissions		6,225		8,741		6,656		7,498		5,302
Cash management		7,927		6,734		6,124		5,624		4,447
Other		6,097		6,509		7,947		7,988		6,026
Total noninterest income		47,974		47,828		48,168		49,331		42,598
Noninterest expense:
Salaries and employee benefits		49,803		49,252		48,019		47,741		45,284
Occupancy expense, net		5,118		4,983		5,259		4,930		4,734
Depreciation		4,769		4,643		4,566		4,612		4,647
Amortization of intangible assets		880		880		880		880		857
Data processing services		2,217		2,107		1,928		1,876		1,975
Net expense (income) from other real estate owned		2,889		2,459		6,235		2,392		(510)
Marketing and business promotion		1,900		2,527		2,465		1,945		1,591
Deposit insurance		1,463		1,613		1,209		1,202		1,196
Other		12,071		11,853		14,044		13,500		13,943
Total noninterest expense		81,110		80,317		84,605		79,078		73,717
Income before income taxes		69,966		74,345		70,139		68,337		55,247
Income tax expense		14,956		16,812		13,013		12,985		10,540
Net income		$                   55,010		$                   57,533		$                   57,126		$                   55,352		$                   44,707
Per Common Share Data:
Net income-basic		$                       1.67		$                       1.75		$                       1.74		$                       1.69		$                       1.36
Net income-diluted		1.64		1.72		1.70		1.65		1.34
Cash dividends declared		0.40		0.40		0.40		0.40		0.36
Common shares outstanding		32,939,256		32,899,493		32,875,560		32,856,387		32,781,198
Average common shares outstanding -
Basic		32,920,497		32,892,857		32,868,087		32,825,931		32,749,752
Diluted		33,467,254		33,462,379		33,503,937		33,536,558		33,418,482
Performance Ratios:
Return on average assets		1.85 %		1.90 %		1.82 %		1.75 %		1.42 %
Return on average stockholders' equity		16.59		18.31		18.62		18.13		15.14
Net interest margin		3.87		3.89		3.83		3.48		3.05
Efficiency ratio		52.70		51.16		53.37		52.62		56.94

 

BancFirst Corporation
Summary Financial Information
(Dollars in thousands, except per share and share data - Unaudited)
		Six months ended
		June 30,
		2023		2022
Condensed Income Statements:
Net interest income		$                215,082		$                162,374
Provision for credit losses		5,146		3,437
Noninterest income:
Trust revenue		8,812		7,455
Service charges on deposits		43,499		42,993
Securities transactions		(103)		(3,915)
Income from sales of loans		1,361		2,922
Insurance commissions		14,966		12,729
Cash management		14,661		7,578
Other		12,606		16,486
Total noninterest income		95,802		86,248
Noninterest expense:
Salaries and employee benefits		99,055		89,216
Occupancy expense, net		10,101		9,137
Depreciation		9,412		9,422
Amortization of intangible assets		1,760		1,688
Data processing services		4,324		3,780
Net expense from other real estate owned		5,348		1,284
Marketing and business promotion		4,427		3,664
Deposit insurance		3,076		2,324
Other		23,924		25,714
Total noninterest expense		161,427		146,229
Income before income taxes		144,311		98,956
Income tax expense		31,768		18,334
Net income		$                112,543		$                  80,622
Per Common Share Data:
Net income-basic		$                      3.42		$                      2.46
Net income-diluted		3.36		2.42
Cash dividends declared		0.80		0.72
Common shares outstanding		32,939,256		32,781,198
Average common shares outstanding -
Basic		32,906,753		32,708,563
Diluted		33,465,931		33,366,799
Performance Ratios:
Return on average assets		1.87 %		1.32 %
Return on average stockholders' equity		17.43		13.74
Net interest margin		3.88		2.92
Efficiency ratio		51.93		58.82

 

BancFirst Corporation
Summary Financial Information
(Dollars in thousands, except per share and share data - Unaudited)
		2023		2023		2022		2022		2022
		2nd Qtr		1st Qtr		4th Qtr		3rd Qtr		2nd Qtr
Balance Sheet Data:
Total assets		$  12,020,265		$  12,332,105		$  12,387,863		$  12,452,378		$  12,530,073
Interest-bearing deposits with banks		2,188,004		2,623,565		2,909,861		3,106,279		3,590,311
Debt securities		1,570,620		1,618,233		1,540,604		1,521,645		1,205,894
Total loans		7,307,475		7,124,831		6,949,795		6,832,595		6,620,643
Allowance for credit losses		(96,920)		(94,760)		(92,728)		(89,871)		(86,935)
Deposits		10,475,180		10,610,103		10,974,228		11,058,940		11,142,688
Stockholders' equity		1,340,791		1,310,882		1,250,836		1,195,149		1,185,695
Book value per common share		40.70		39.85		38.05		36.37		36.17
Tangible book value per common share (non-GAAP)(1)		34.62		33.73		31.90		30.20		29.90
Balance Sheet Ratios:
Average loans to deposits		69.85 %		64.54 %		62.25 %		59.62 %		58.66 %
Average earning assets to total assets		92.23		92.52		92.14		91.58		90.89
Average stockholders' equity to average assets		11.17		10.36		9.80		9.63		9.40
Asset Quality Data:
Past due loans		$          8,799		$          7,258		$          7,085		$          3,167		$          4,771
Nonaccrual loans (3)		18,047		17,649		15,299		11,962		13,712
Other real estate owned and repossessed assets		41,612		38,874		36,936		39,419		39,209
Nonaccrual loans to total loans		0.25 %		0.25 %		0.22 %		0.18 %		0.21 %
Allowance to total loans		1.33		1.33		1.33		1.32		1.31
Allowance to nonaccrual loans		537.05		536.93		606.10		751.32		634.01
Net charge-offs to average loans		0.01		0.00		0.01		0.00		0.01
Reconciliation of Tangible Book Value Per Common Share (non-GAAP)(2):
Stockholders' equity		$   1,340,791		$   1,310,882		$   1,250,836		$   1,195,149		$   1,185,695
Less goodwill		182,055		182,055		182,055		182,055		183,639
Less intangible assets, net		18,223		19,103		19,983		20,863		21,743
Tangible stockholders' equity (non-GAAP)		$   1,140,513		$   1,109,724		$   1,048,798		$      992,231		$      980,313
Common shares outstanding		32,939,256		32,899,493		32,875,560		32,856,387		32,781,198
Tangible book value per common share (non-GAAP)		$          34.62		$          33.73		$          31.90		$          30.20		$          29.90
(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.
(3) Government Agencies guarantee approximately $6.6 million of nonaccrual loans at June 30, 2023.

 

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, 2023						June 30, 2023
				Interest		Average				Interest		Average
		Average		Income/		Yield/		Average		Income/		Yield/
		Balance		Expense		Rate		Balance		Expense		Rate
ASSETS
Earning assets:
Loans		$        7,247,283		$           114,708		6.35	%	$        7,127,174		$           219,189		6.20	%
Debt securities – taxable		1,604,422		9,408		2.35		1,588,439		18,399		2.34
Debt securities – tax exempt		3,251		29		3.59		3,366		38		2.29
Interest bearing deposits with banks and FFS		2,131,325		26,775		5.04		2,463,587		58,827		4.82
Total earning assets		10,986,281		150,920		5.51		11,182,566		296,453		5.35
Nonearning assets:
Cash and due from banks		200,165						209,115
Interest receivable and other assets		820,731						808,094
Allowance for credit losses		(95,887)						(94,609)
Total nonearning assets		925,009						922,600
Total assets		$       11,911,290						$       12,105,166
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest bearing liabilities:
Transaction deposits		$           843,219		$               1,637		0.78	%	$           885,010		$               3,269		0.74	%
Savings deposits		4,456,909		37,667		3.39		4,440,577		68,158		3.10
Time deposits		747,101		4,428		2.38		726,558		7,482		2.08
Short-term borrowings		10,211		129		5.04		8,537		212		5.00
Subordinated debt		86,063		1,031		4.81		86,056		2,061		4.83
Total interest bearing liabilities		6,143,503		44,892		2.93		6,146,738		81,182		2.66
Interest free funds:
Noninterest bearing deposits		4,328,005						4,561,214
Interest payable and other liabilities		109,732						94,817
Stockholders' equity		1,330,050						1,302,397
Total interest free  funds		5,767,787						5,958,428
Total liabilities and stockholders' equity		$       11,911,290						$       12,105,166
Net interest income				$           106,028						$           215,271
Net interest spread						2.58	%					2.69	%
Effect of interest free funds						1.29	%					1.19	%
						3.87	%					3.88	%

 

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SOURCE BancFirst