BANCFIRST CORPORATION REPORTS THIRD QUARTER EARNINGS

Rhea-AI Summary

BancFirst Corporation (BANF) reported a strong third quarter 2022 with net income of $55.4 million or $1.65 per diluted share, up from $38.8 million or $1.16 in Q3 2021. Year-to-date net income rose to $136.0 million or $4.07 per share. Net interest income increased to $100.9 million, boosted by rising interest rates and loan growth. Noninterest income also surged to $49.3 million. Total assets grew to $12.5 billion, with deposits up by $3.0 billion. Asset quality remains strong with nonaccrual loans at 0.18% of total loans.

Positive

• Net income increased by $16.6 million year-over-year.
• Net interest income rose to $100.9 million, up from $80.2 million.
• Total assets grew to $12.5 billion, marking significant expansion.
• Noninterest income increased to $49.3 million, primarily due to higher sweep fees.

Negative

• Provision for credit losses increased to $2.9 million from $1.5 million year-over-year.
• Total noninterest expenses rose to $79.1 million, up from $70.2 million.

OKLAHOMA CITY, Oct. 20, 2022 /PRNewswire/ -- BancFirst Corporation (NASDAQ GS:BANF) reported net income of $55.4 million, or $1.65 diluted earnings per share, for the third quarter of 2022 compared to net income of $38.8 million, or $1.16 diluted earnings per share, for the third quarter of 2021. Net income for the nine months ended September 30, 2022 was $136.0 million, or $4.07 per share, compared to $129.5 million, or $3.88 per share, for the nine months ended September 30, 2021.

The Company's net interest income for the third quarter of 2022 increased to $100.9 million from $80.2 million for the quarter ended September 30, 2021. Rising short-term interest rates and loan growth contributed to the increase. The net interest margin for the quarter was 3.48% compared to 3.09% a year ago. The margin for the third quarter of 2021 included $10.0 million in PPP fees.  

For the third quarter of 2022, the Company recorded a provision for credit losses of $2.9 million compared to $1.5 million for the quarter ended September 30, 2021. The Company remains neutral on the likelihood of a significant economic downturn in Oklahoma and Texas and therefore will maintain current CECL reserves in the near term.

Noninterest income for the quarter totaled $49.3 million up from $39.8 million last year. The increase in noninterest income in 2022 was mostly attributable to $3.4 million in sweep fees and $3.2 million of income from an equity interest received through restructuring a loan. Total noninterest expense for the current quarter was $79.1 million up from $70.2 million for the third quarter last year, primarily due to the Worthington acquisition and salary increases.

The Company's effective tax rate was 19.0% compared to 19.7% for the third quarter of 2021.

At September 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 $3.0 billion from December 31, 2021. The balance sheet growth was driven by the return of customer deposits from off-balance sheet sweep accounts and the acquisition of Worthington National Bank. Loans totaled $6.8 billion compared to $6.2 billion at December 31, 2021. Loan growth during 2022, net of acquired loans and PPP loan runoffs, was $461 million, or 7%. Stockholders' equity was $1.2 billion, an increase of $23.4 million over December 31, 2021.

Asset quality remained strong as nonaccrual loans continued to decline, totaling $12.0 million, representing 0.18% of total loans at September 30, 2022, down from 0.34% at year-end 2021. The allowance for credit losses to total loans was 1.32% at September 30, 2022, down slightly from 1.36% at the end of 2021.

BancFirst Corporation CEO David Harlow commented, "The Company reported a strong quarter at $1.65/share fueled by both margin expansion as a result of continued fed tightening and solid loan growth.  Non-Interest income expanded across most all major categories led by the return of sweep fees as interest rates have increased.  Asset quality remained superior with YTD net charge offs of 1 bps.  We are maintaining an allowance for credit losses consistent with our current view of the anticipated economic slowdown in our region of the country."

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		2022		2021		2021
		3rd Qtr		2nd Qtr		1st Qtr		4th Qtr		3rd Qtr
Condensed Income Statements:
Net interest income		$                   100,947		$                    86,867		$                    75,507		$                    75,898		$                    80,190
Provision for (benefit from) credit losses		2,863		501		2,936		(224)		1,483
Non-interest income:
Trust revenue		4,125		3,949		3,506		3,336		3,210
Service charges on deposits		22,161		21,618		21,375		22,095		21,706
Securities transactions		966		-		(3,915)		630		150
Income from sales of loans		969		1,256		1,666		1,545		1,594
Insurance commissions		7,498		5,302		7,427		6,075		6,666
Cash management		5,624		4,447		3,131		3,115		3,127
Other		7,988		6,026		10,460		8,897		3,333
Total noninterest income		49,331		42,598		43,650		45,693		39,786
Non-interest expense:
Salaries and employee benefits		47,741		45,284		43,932		42,887		42,267
Occupancy expense, net		4,930		4,734		4,403		4,521		5,086
Depreciation		4,612		4,647		4,775		4,708		4,207
Amortization of intangible assets		880		857		831		759		755
Data processing services		1,876		1,975		1,805		1,663		1,734
Net (income) expense from other real estate owned		2,392		(510)		1,794		2,412		1,810
Marketing and business promotion		1,945		1,591		2,073		2,080		1,796
Deposit insurance		1,202		1,196		1,128		968		846
Other		13,500		13,943		11,771		16,783		11,713
Total noninterest expense		79,078		73,717		72,512		76,781		70,214
Income before income taxes		68,337		55,247		43,709		45,034		48,279
Income tax expense		12,985		10,540		7,794		6,866		9,529
Net income		$                    55,352		$                    44,707		$                    35,915		$                    38,168		$                    38,750
Per Common Share Data:
Net income-basic		$                        1.69		$                        1.36		$                        1.10		$                        1.17		$                        1.18
Net income-diluted		1.65		1.34		1.08		1.15		1.16
Cash dividends declared		0.40		0.36		0.36		0.36		0.36
Common shares outstanding		32,856,387		32,781,198		32,725,587		32,603,118		32,572,217
Average common shares outstanding -
Basic		32,825,931		32,749,752		32,666,916		32,585,784		32,744,104
Diluted		33,536,558		33,418,482		33,315,333		33,180,680		33,267,955
Performance Ratios:
Return on average assets		1.75 %		1.42 %		1.22 %		1.33 %		1.37 %
Return on average stockholders' equity		18.13		15.14		12.33		13.02		13.42
Net interest margin		3.48		3.05		2.78		2.87		3.09
Efficiency ratio		52.62		56.94		60.85		63.15		58.52

 

BancFirst Corporation
Summary Financial Information
(Dollars in thousands, except per share and share data - Unaudited)
		Nine months ended
		September 30,
		2022		2021
Condensed Income Statements:
Net interest income		$              263,321		$              239,759
Provision for (benefit from) credit losses		6,300		(8,466)
Non-interest income:
Trust revenue		11,580		9,576
Service charges on deposits		65,154		61,330
Securities transactions		(2,949)		417
Income from sales of loans		3,891		5,737
Insurance commissions		20,227		17,670
Cash management		13,202		9,198
Other		24,474		20,411
Total noninterest income		135,579		124,339
Non-interest expense:
Salaries and employee benefits		136,957		123,836
Occupancy expense, net		14,067		13,962
Depreciation		14,034		12,217
Amortization of intangible assets		2,568		2,357
Data processing services		5,656		5,072
Net expense from other real estate owned		3,676		6,677
Marketing and business promotion		5,609		5,323
Deposit insurance		3,526		2,488
Other		39,214		37,268
Total noninterest expense		225,307		209,200
Income before income taxes		167,293		163,364
Income tax expense		31,319		33,902
Net income		$              135,974		$              129,462
Per Common Share Data:
Net income-basic		$                     4.15		$                     3.95
Net income-diluted		4.07		3.88
Cash dividends declared		1.12		1.04
Common shares outstanding		32,856,387		32,572,217
Average common shares outstanding -
Basic		32,748,116		32,760,015
Diluted		33,429,161		33,358,837
Performance Ratios:
Return on average assets		1.47 %		1.61 %
Return on average stockholders' equity		15.24		15.54
Net interest margin		3.11		3.25
Efficiency ratio		56.48		57.46

 

BancFirst Corporation
Summary Financial Information
(Dollars in thousands, except per share and share data - Unaudited)
		2022		2022		2022		2021		2021
		3rd Qtr		2nd Qtr		1st Qtr		4th Qtr		3rd Qtr
Balance Sheet Data:
Total assets		$   12,452,378		$   12,530,073		$   12,624,431		$     9,405,612		$   11,302,771
Interest-bearing deposits with banks		3,106,279		3,590,311		3,816,532		1,821,203		3,836,809
Debt securities		1,521,645		1,205,894		1,211,668		534,500		529,484
Total loans		6,832,595		6,620,643		6,504,477		6,194,218		6,037,886
Allowance for credit losses		(89,871)		(86,935)		(87,239)		(83,936)		(86,463)
Deposits		11,058,940		11,142,688		11,250,971		8,091,914		9,992,044
Stockholders' equity		1,195,149		1,185,695		1,167,802		1,171,734		1,146,874
Book value per common share		36.37		36.17		35.68		35.94		35.21
Tangible book value per common share (non-GAAP)(1)		30.20		29.90		29.51		30.80		30.04
Balance Sheet Ratios:
Average loans to deposits		59.62 %		58.66 %		59.72 %		60.16 %		61.56 %
Average earning assets to total assets		91.58		90.89		91.92		92.13		92.13
Average stockholders' equity to average assets		9.63		9.40		9.86		10.19		10.22
Asset Quality Data:
Past due loans		$           3,167		$           4,771		$           6,360		$           4,964		$           5,186
Nonaccrual loans (5)		11,962		13,712		17,453		20,892		26,607
Restructured loans		2,249		2,174		2,345		3,665		7,073
Total nonperforming and restructured loans		17,378		20,657		26,158		29,521		38,866
Other real estate owned and repossessed assets		39,419		39,209		39,729		39,553		39,060
Total nonperforming and restructured assets		56,797		59,866		65,887		69,074		77,926
Nonaccrual loans to total loans		0.18 %		0.21 %		0.27 %		0.34 %		0.44 %
Nonaccrual loans to total Non-PPP loans (non-GAAP)(3)		0.18		0.21		0.27		0.34		0.46
Nonperforming and restructured loans to total loans		0.25		0.31		0.40		0.48		0.64
Nonperforming and restructured loans to total Non-PPP loans (non-GAAP)(3)		0.25		0.31		0.40		0.48		0.67
Nonperforming and restructured assets to total assets		0.46		0.48		0.52		0.73		0.69
Allowance to total loans		1.32		1.31		1.34		1.36		1.43
Allowance to total Non-PPP loans (non-GAAP)(3)		1.32		1.31		1.35		1.37		1.48
Allowance to nonaccrual loans		751.32		634.01		499.83		401.76		324.96
Allowance to nonperforming and restructured loans		517.17		420.84		333.51		284.33		222.46
Net charge-offs to average loans		0.00		0.01		0.00		0.03		0.01
Reconciliation of Tangible Book Value Per Common Share (non-GAAP)(2):
Stockholders' equity		$     1,195,149		$     1,185,695		$     1,167,802		$     1,171,734		$     1,146,874
Less goodwill		182,055		183,639		176,563		149,922		149,922
Less intangible assets, net		20,863		21,743		25,456		17,566		18,325
Tangible stockholders' equity (non-GAAP)		$       992,231		$       980,313		$       965,783		$     1,004,246		$       978,627
Common shares outstanding		32,856,387		32,781,198		32,725,587		32,603,118		32,572,217
Tangible book value per common share (non-GAAP)		$           30.20		$           29.90		$           29.51		$           30.80		$           30.04
(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		$     6,832,595		$     6,620,643		$     6,504,477		$     6,194,218		$     6,037,886
Less PPP loans		1,140		3,206		30,605		80,412		201,208
Total Non-PPP loans (non-GAAP)		$     6,831,455		$     6,617,437		$     6,473,872		$     6,113,806		$     5,836,678
Nonaccrual loans (5)		11,962		13,712		17,453		20,892		26,607
Nonaccrual loans to total Non-PPP loans (non-GAAP)		0.18 %		0.21 %		0.27 %		0.34 %		0.46 %
Total nonperforming and restructured loans		17,378		20,657		26,158		29,521		38,866
Nonperforming and restructured loans to total Non-PPP loans (non-GAAP)		0.25 %		0.31 %		0.40 %		0.48 %		0.67 %
Allowance for credit losses		(89,871)		(86,935)		(87,239)		(83,936)		(86,463)
Allowance to total Non-PPP loans (non-GAAP)		1.32 %		1.31 %		1.35 %		1.37 %		1.48 %

(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 $2.0 million of nonaccrual loans at September 30, 2022.

 

BancFirst Corporation Consolidated Average Balance Sheets And Interest Margin Analysis Taxable Equivalent Basis (Dollars in thousands - Unaudited)
		Three Months Ended						Nine Months Ended
		September 30, 2022						September 30, 2022
				Interest		Average				Interest		Average
		Average		Income/		Yield/		Average		Income/		Yield/
		Balance		Expense		Rate		Balance		Expense		Rate
ASSETS
Earning assets:
Loans		$          6,652,613		$              87,169		5.20	%	$          6,527,355		$             239,072		4.90	%
Debt securities – taxable		1,353,950		6,793		1.99		1,218,092		15,716		1.73
Debt securities – tax exempt		3,539		28		3.09		3,993		89		2.99
Interest bearing deposits with banks and FFS		3,512,242		20,119		2.27		3,582,533		29,482		1.10
Total earning assets		11,522,344		114,109		3.93		11,331,973		284,359		3.35
Nonearning assets:
Cash and due from banks		252,874						271,060
Interest receivable and other assets		892,858						874,379
Allowance for credit losses		(86,955)						(86,545)
Total nonearning assets		1,058,777						1,058,894
Total assets		$        12,581,121						$        12,390,867
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest bearing liabilities:
Transaction deposits		$             958,008		$                   442		0.18	%	$             959,261		$                   846		0.12	%
Savings deposits		4,313,076		10,447		0.96		4,271,070		14,320		0.45
Time deposits		678,549		1,110		0.65		666,190		2,400		0.48
Short-term borrowings		6,979		36		2.05		5,401		49		1.21
Subordinated debt		86,020		1,030		4.75		86,006		3,091		4.81
Total interest bearing liabilities		6,042,632		13,065		0.86		5,987,928		20,706		0.46
Interest free funds:
Noninterest bearing deposits		5,208,591						5,106,094
Interest payable and other liabilities		118,375						104,299
Stockholders' equity		1,211,523						1,192,546
Total interest free  funds		6,538,489						6,402,939
Total liabilities and stockholders' equity		$        12,581,121						$        12,390,867
Net interest income				$             101,044						$             263,653
Net interest spread						3.07	%					2.89	%
Effect of interest free funds						0.41	%					0.22	%
Net interest margin						3.48	%					3.11	%

 

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SOURCE BancFirst

FAQ

What was BancFirst's net income for Q3 2022?

BancFirst reported a net income of $55.4 million for Q3 2022.

How much did BancFirst earn per share in Q3 2022?

BancFirst earned $1.65 per diluted share in Q3 2022.

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

The increase in net interest income was driven by rising short-term interest rates and loan growth.

What is the total asset growth reported by BancFirst?

BancFirst's total assets grew to $12.5 billion as of September 30, 2022.

What was BancFirst's provision for credit losses in Q3 2022?

The provision for credit losses was $2.9 million for Q3 2022.