PR Newswire | Oct 21, 2021 04:20PM EDT

10/21 15:20 CDT

BancFirst Corporation Reports Third Quarter Earnings OKLAHOMA CITY, Oct. 21, 2021

OKLAHOMA CITY, Oct. 21, 2021 /PRNewswire/ -- BancFirst Corporation (NASDAQ GS: BANF) reported net income of $38.8 million, or $1.16 diluted earnings per share, for the third quarter of 2021 compared to net income of $20.9 million, or $0.63 diluted earnings per share, for the third quarter of 2020. The Company recorded a provision for credit losses of $1.5 million for the three months ended September 30, 2021 compared to a provision for credit losses of $18.7 million for the three months ended September 30, 2020. Net income for the nine months ended September 30, 2021 was $129.5 million, or $3.88 diluted earnings per share, compared to $64.2 million, or $1.94 diluted earnings per share, for the nine months ended September 30, 2020. The Company recorded a net benefit from reversal of provisions for credit losses of $8.5 million for the nine months ended September 30, 2021 compared to a provision for credit losses of $57.7 million for the nine months ended September 30, 2020.

BancFirst Corporation Executive Chairman David Rainbolt commented, "Recently, COVID cases have begun to decline in Oklahoma, but continue to impact some businesses. As a result, our revised quarterly economic scenario supports a stable reserve. Consequently, the provision was very slight this quarter. We would anticipate the economic effects of the pandemic to wane more rapidly over the next quarter which would imply a lower reserve going forward."

The Company's net interest income for the third quarter of 2021 increased to $80.2 million compared to $75.9 million for the third quarter of 2020, as a result of an increase of $6.1 million in fee income from Paycheck Protection Program (PPP) loan forgiveness. The net interest margin for the quarter was 3.09% compared to 3.40% a year ago. Noninterest income for the quarter totaled $39.8 million, compared to $34.6 million last year. The increase in noninterest income was attributable to $2.9 million in rental income from other real estate property, a $2.1 million increase in income from debit card interchange fees and a $1.5 million increase in insurance commissions. Noninterest expense for the quarter increased to $70.2 million compared to $66.1 million last year, because of the increase in approximately $2.0 million related to other real estate property operating costs and $1.0 million in net occupancy and depreciation primarily from the Company's new corporate headquarters. The Company's effective tax rate was 19.7% compared to 18.4% for the third quarter of 2020.

At September 30, 2021, the Company's total assets were $11.3 billion, an increase of $2.1 billion from December 31, 2020. Loans totaled $6.0 billion, a decrease of $410.3 million from December 31, 2020 stemming from a net decrease of approximately $451.5 million in PPP loans and approximately $21 million of loans that were sold with the Company's Hugo, Oklahoma branch, which were partially offset by approximately $149 million of acquired loans from the First National Bank and Trust Company of Vinita, Oklahoma. Deposits totaled $10.0 billion, an increase of $1.9 billion from December 31, 2020. The increase in assets and deposits was predominantly related to PPP and other government stimulus payments. At September 30, 2021, the balance of PPP loans was $201.2 million. The Company's total stockholders' equity was $1.1 billion, an increase of $79.0 million over December 31, 2020. Off-balance sheet sweep accounts totaled $2.7 billion at September 30, 2021 compared to $2.8 billion at December 31, 2020.

Nonaccrual loans represent 0.44% of total loans at September 30, 2021, down from 0.58% at year-end 2020. Net charge-offs for the quarter were 0.01% of average loans, compared to 0.03% in the third quarter of 2020. The allowance for credit losses to total loans was 1.43% at September 30, 2021 compared to 1.42% at year-end 2020, and the allowance for credit losses to nonaccrual loans was 324.96% compared to 243.35% at year-end 2020. At September 30, 2021, the Company's nonaccrual loans decreased $10.9 million from year-end 2020, as a result of the resolution of several loans, which was offset by $7.2 million of nonaccrual loans acquired from The First National Bank and Trust Company of Vinita, Oklahoma. At September 30, 2021, the Company's other real estate owned (OREO) increased $6.8 million from December 31, 2020, and included approximately $4.0 million from the repossession of one commercial real estate property, $2.4 million from the decommissioning of the Company's previous headquarters, and approximately $600,000 acquired from The First National Bank and Trust Company of Vinita, Oklahoma.

BancFirst Corporation CEO David Harlow commented, "Fees related to ongoing PPP loan forgiveness and a year-to-date negative provision have allowed for outsized EPS through the first nine months of the year. For the remainder of this year and into 2022, our challenge will be to grow loans and stabilize our margin while continuing to build upon and expand our non-interest and fee based revenues."

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 108 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)

2021 2021 2021 2020 2020

3rd Qtr 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr

Condensed Income Statements:

Net interest income $ 80,190 $ 82,363 $ 77,206 $ 79,535 $ 75,852

Provision for (benefit from) credit losses 1,483 (9,949) - 4,992 18,740

Non-interest income:

Trust revenue 3,210 3,264 3,102 2,976 3,131

Service charges on deposits 21,706 20,524 19,100 19,796 19,078

Securities transactions 150 172 95 156 -

Income from sales of loans 1,594 2,133 2,010 1,852 1,873

Insurance commissions 6,666 5,015 5,989 5,680 5,197

Cash management 3,127 3,068 3,003 3,135 3,701

Other 3,333 10,442 6,636 1,825 1,595

Total noninterest income 39,786 44,618 39,935 35,420 34,575

Non-interest expense:

Salaries and employee benefits 42,267 41,992 39,577 40,750 41,995

Occupancy expense, net 5,086 4,528 4,348 4,533 4,503

Depreciation 4,207 4,133 3,877 3,779 3,795

Amortization of intangible assets 755 809 793 915 968

Data processing services 1,734 1,660 1,678 1,763 1,669

Net expense from other real estate owned 1,810 3,357 1,510 420 196

Marketing and business promotion 1,796 1,648 1,879 1,671 1,485

Deposit insurance 846 766 876 857 723

Other 11,713 15,130 10,425 10,923 10,749

Total noninterest expense 70,214 74,023 64,963 65,611 66,083

Income before income taxes 48,279 62,907 52,178 44,352 25,604

Income tax expense 9,529 14,715 9,658 8,994 4,714

Net income $ 38,750 $ 48,192 $ 42,520 $ 35,358 $ 20,890

Per Common Share Data:

Net income-basic $ 1.18 $ 1.47 $ 1.30 $ 1.08 $ 0.64

Net income-diluted 1.16 1.45 1.27 1.06 0.63

Cash dividends declared 0.36 0.34 0.34 0.34 0.34

Common shares outstanding 32,572,217 32,784,513 32,771,013 32,719,852 32,679,191

Average common shares outstanding -

Basic 32,744,104 32,779,227 32,756,852 32,690,296 32,668,789

Diluted 33,267,955 33,405,923 33,408,116 33,275,550 33,168,938

Performance Ratios:

Return on average assets 1.37% 1.79% 1.69% 1.45% 0.86%

Return on average stockholders' equity 13.42 17.42 15.90 13.25 7.89

Net interest margin 3.09 3.32 3.36 3.55 3.40

Efficiency ratio 58.52 58.29 55.46 57.08 59.84

BancFirstCorporation

Summary Financial Information

(Dollars in thousands, except per share and share data - Unaudited)

Nine months ended

September 30,

2021 2020

Condensed Income Statements:

Net interest income $ 239,759 $ 227,133

(Benefit from) provision for credit losses (8,466) 57,656

Non-interest income:

Trust revenue 9,576 10,154

Service charges on deposits 61,330 54,642

Securities transactions 417 (545)

Income from sales of loans 5,737 4,215

Insurance commissions 17,670 15,316

Cash management 9,198 12,276

Other 20,411 5,744

Total noninterest income 124,339 101,802

Non-interest expense:

Salaries and employee benefits 123,836 123,977

Occupancy expense, net 13,962 11,888

Depreciation 12,217 10,830

Amortization of intangible assets 2,357 2,900

Data processing services 5,072 4,990

Net income (expense) from other real estate owned 6,677 (1,951)

Marketing and business promotion 5,323 5,325

Deposit insurance 2,488 1,224

Other 37,268 32,936

Total noninterest expense 209,200 192,119

Income before income taxes 163,364 79,160

Income tax expense 33,902 14,932

Net income $ 129,462 $ 64,228

Per Common Share Data:

Net income-basic $ 3.95 $ 1.97

Net income-diluted 3.88 1.94

Cash dividends declared 1.04 0.98

Common shares outstanding 32,572,217 32,679,191

Average common shares outstanding -

Basic 32,760,015 32,666,554

Diluted 33,358,837 33,190,294

Performance Ratios:

Return on average assets 1.61% 0.93%

Return on average stockholders' equity 15.54 8.24

Net interest margin 3.25 3.58

Efficiency ratio 57.46 58.41

BancFirstCorporation

Summary Financial Information

(Dollars in thousands, except per share and share data - Unaudited)

2021 2021 2021 2020 2020

3rd Qtr 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr

Balance Sheet Data:

Total assets $ 11,302,771 $ 11,015,287 $ 10,549,305 $ 9,212,357 $ 9,618,868

Interest-bearing deposits with banks 3,836,809 3,373,099 2,788,316 1,336,394 1,609,462

Debt securities 529,484 563,771 520,543 555,196 596,941

Total loans 6,037,886 6,207,262 6,380,108 6,448,225 6,660,694

Allowance for credit losses (86,463) (83,963) (90,860) (91,366) (106,126)

Deposits 9,992,044 9,728,389 9,371,940 8,064,704 8,495,891

Stockholders' equity 1,146,874 1,131,591 1,094,671 1,067,885 1,043,752

Book value per common share 35.21 34.52 33.40 32.64 31.94

Tangible book value per common share (non-GAAP)(1) 30.04 29.35 28.27 27.47 26.74

Balance Sheet Ratios:

Average loans to deposits 61.56% 65.36% 70.84% 77.02% 78.55%

Average earning assets to total assets 92.13 92.01 91.54 91.82 91.99

Average stockholders' equity to average assets 10.22 10.25 10.64 10.91 10.90

Asset Quality Data:

Past due loans $ 5,186 $ 4,386 $ 5,282 $ 4,802 $ 6,412

Nonaccrual loans (5) 26,607 29,802 35,326 37,545 82,385

Restructured loans 7,073 7,485 7,801 7,784 2,837

Total nonperforming and restructured loans 38,866 41,673 48,409 50,131 91,634

Other real estate owned and repossessed assets 39,060 40,183 30,320 32,480 4,939

Total nonperforming and restructured assets 77,926 81,856 78,729 82,611 96,573

Nonaccrual loans to total loans 0.44% 0.48% 0.55% 0.58% 1.24%

Nonaccrual loans to total Non-PPP loans (non-GAAP)(3) 0.46 0.51 0.62 0.65 1.41

Nonperforming and restructured loans to total loans 0.64 0.67 0.76 0.78 1.38

Nonperforming and restructured loans to total Non-PPP loans (non-GAAP)(3) 0.67 0.71 0.85 0.86 1.57

Nonperforming and restructured assets to total assets 0.69 0.74 0.75 0.90 1.00

Allowance to total loans 1.43 1.35 1.42 1.42 1.59

Allowance to total Non-PPP loans (non-GAAP)(3) 1.48 1.44 1.60 1.58 1.82

Allowance to nonaccrual loans 324.96 281.73 257.20 243.35 128.82

Allowance to nonperforming and restructured loans 222.46 201.48 187.69 182.26 115.81

Net charge-offs to average loans 0.01 0.06 0.01 0.30 0.03

Reconciliation of Tangible Book Value Per Common Share (non-GAAP)(2):

Stockholders' equity $ 1,146,874 $ 1,131,591 $ 1,094,671 $ 1,067,885 $ 1,043,752

Less goodwill 149,922 149,922 149,922 149,922 149,922

Less intangible assets, net 18,325 19,283 18,206 18,999 19,914

Tangible stockholders' equity (non-GAAP) $ 978,627 $ 962,386 $ 926,543 $ 898,964 $ 873,916

Common shares outstanding 32,572,217 32,784,513 32,771,013 32,719,852 32,679,191

Tangible book value per common share (non-GAAP) $ 30.04 $ 29.35 $ 28.27 $ 27.47 $ 26.74

(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 lessgoodwill and intangible assets, net, divided by common shares outstanding. Thisamount is a non-GAAP financial measure but has been included as it isconsidered to be a critical metric with which to analyze and evaluate thefinancial condition and capital strength of the Company. This measure shouldnot be considered a substitute for operating results determined in accordancewith GAAP.

Reconciliation of Non-PPP loan ratios (non-GAAP)(4):

Total loans $ 6,037,886 $ 6,207,262 $ 6,380,108 $ 6,448,225 $ 6,660,694

Less PPP loans 201,208 368,620 713,714 652,693 831,703

Total Non-PPP loans (non-GAAP) $ 5,836,678 $ 5,838,642 $ 5,666,394 $ 5,795,532 $ 5,828,991

Nonaccrual loans (5) 26,607 29,802 35,326 37,545 82,385

Nonaccrual loans to total Non-PPP loans (non-GAAP) 0.46% 0.51% 0.62% 0.65% 1.41%

Total nonperforming and restructured loans 38,866 41,673 48,409 50,131 91,634

Nonperforming and restructured loans to total Non-PPP loans (non-GAAP) 0.67% 0.71% 0.85% 0.86% 1.57%

Allowance for credit losses (86,463) (83,963) (90,860) (91,366) (106,126)

Allowance to total Non-PPP loans (non-GAAP) 1.48% 1.44% 1.60% 1.58% 1.82%

(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 bytotal loans less Paycheck Protection Program (PPP) loans. Nonperforming andrestructured loans to total Non-PPP loans is nonperforming and restructuredloans, divided by total loans less PPP loans. Allowance to total Non-PPP loansis allowance for credit losses, divided by total loans less PPP loans. Theseamounts are non-GAAP financial measures but have been included as they areconsidered critical metrics with which to analyze and evaluate the financialcondition and capital strength of the Company. These measures should not beconsidered substitutes for operating results determined in accordance withGAAP.

(5) Government Agencies guarantee approximately $3.1 million of nonaccrualloans at September 30, 2021.

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, 2021 September 30, 2021

Interest Average Interest Average

Average Income/ Yield/ Average Income/ Yield/

Balance Expense Rate Balance Expense Rate

ASSETS

Earning assets:

Loans $ 6,103,533 $ 80,370 5.22 % $ 6,267,176 $ 240,733 5.14 %

Debt securities - taxable 536,690 1,484 1.10 531,109 4,779 1.20

Debt securities - tax exempt 6,336 45 2.83 13,530 222 2.20

Interest bearing deposits with banks and FFS 3,682,313 1,441 0.16 3,064,852 2,861 0.12

Total earning assets 10,328,872 83,340 3.20 9,876,667 248,595 3.37

Nonearning assets:

Cash and due from banks 269,153 270,724

Interest receivable and other assets 696,567 688,223

Allowance for credit losses (83,969) (89,116)

Total nonearning assets 881,751 869,831

Total assets $ 11,210,623 $ 10,746,498

LIABILITIES AND STOCKHOLDERS' EQUITY

Interest bearing liabilities:

Transaction deposits $ 881,043 $ 161 0.07 % $ 835,363 $ 465 0.07 %

Savings deposits 3,825,687 989 0.10 3,675,121 3,034 0.11

Time deposits 659,490 838 0.50 658,306 2,814 0.57

Short-term borrowings 2,713 - 0.10 2,595 1 0.07

Subordinated debt 85,964 1,031 4.76 46,957 2,100 5.98

Total interest bearing liabilities 5,454,897 3,019 0.22 5,218,342 8,414 0.22

Interest free funds:

Noninterest bearing deposits 4,547,944 4,363,925

Interest payable and other liabilities 61,794 50,469

Stockholders' equity 1,145,988 1,113,762

Total interest free funds 5,755,726 5,528,156

Total liabilities and stockholders' equity $ 11,210,623 $ 10,746,498

Net interest income $ 80,321 $ 240,181

Net interest spread 2.98 % 3.15 %

Effect of interest free funds 0.11 % 0.10 %

Net interest margin 3.09 % 3.25 %

View original content: https://www.prnewswire.com/news-releases/bancfirst-corporation-reports-third-quarter-earnings-301406173.html

SOURCE BancFirst