OKLAHOMA CITY, April 21, 2022 /PRNewswire/ -- BancFirst Corporation (NASDAQ GS:BANF) reported net income of $35.9 million, or $1.08 diluted earnings per share, for the first quarter of 2022 compared to net income of $42.5 million, or $1.27 diluted earnings per share, for the first quarter of 2021. The Company's net interest income for the first quarter of 2022 decreased to $75.5 million compared to $77.2 million for the quarter ended March 31, 2021. The decrease was due to the decline of PPP fee income of approximately $8.1 million, partially offset by the increase in interest income on debt securities of $2.0 million, an increase of $1.2 million related to interest-bearing deposits at the Federal Reserve and $1.7 million in net interest income related to the Worthington acquisition. The net interest margin for the quarter was 2.78% compared to 3.36% a year ago. The decrease in margin was due to lower PPP fees earned during the quarter and an increase in cash held at the Federal Reserve. For the first quarter of 2022 a provision of $2.9 million was recorded, which was substantially related to acquired loans during the quarter, compared to no provision for credit losses recorded for March 31, 2021. Noninterest income for the quarter totaled $43.7 million, compared to $39.9 million last year. The increase in noninterest income was mostly attributable to $4.9 million of income resulting from the application of equity method accounting related to an equity interest received in the process of a loan collection, along with a $2.0 million increase in income from service charges on deposits and $1.4 million increase in insurance commissions. The increase in non-interest income was partially offset by an unrealized loss of $4.0 million on bonds resulting from the sale of $226 million of low yielding securities, which were subsequently reinvested, and a $2.6 million gain on sale of other assets in the first quarter last year. Noninterest expense for the quarter increased to $72.5 million compared to $65.0 million last year because of the increase in salaries and employee benefits of approximately $4.4 million and other expenses related to the Worthington acquisition. The Company's effective tax rate was 17.8% compared to 18.5% for the first quarter of 2021. The lower effective tax rate was driven by the exercising of stock options during the quarter and a lower state income tax rate.
At March 31, 2022, the Company's total assets were $12.6 billion, an increase of $3.2 billion from December 31, 2021. Debt securities of $1.2 billion were up $677.2 million from December 31, 2021. Loans totaled $6.5 billion, an increase of $313.8 million from December 31, 2021. Loans increased $260.9 million due to the acquisition of Worthington. At March 31, 2022, the balance of the PPP loans was $30.4 million, compared to $80.4 million at December 31, 2021. Deposits totaled $11.3 billion, an increase of $3.2 billion from December 31, 2021. The increase in assets and deposits from December 31, 2021, was primarily related to the return in off-balance sheet sweep accounts related to the Company's year-end sweep program. Off-balance sheet sweep accounts were $2.9 billion at March 31, 2022 compared to $5.1 billion at December 31, 2021. The Company's total stockholders' equity was $1.2 billion, a decrease of $3.9 million over December 31, 2021. The decrease in stockholders equity was due to unrealized losses in other comprehensive income.
Nonaccrual loans represented 0.27% of total loans at March 31, 2022, down from 0.34% at year-end 2021. The allowance for credit losses to total loans was 1.34% at March 31, 2022, down from 1.36% at and year-end 2021, and the allowance for credit losses to nonaccrual loans was approximately 500% compared to 402% at year-end 2021. At March 31, 2022, the Company's nonaccrual loans were $17.5 million compared to $20.9 million at year-end 2021.
BancFirst Corporation CEO David Harlow commented, "We were pleased to close on the acquisition of Worthington National Bank during the quarter bringing total assets in Texas to approximately $2 billion providing a strong platform for future growth in the DFW market. Overall, the Company performed well in the quarter with the expectation for future margin expansion as the Fed continues to implement its planned tightening. With the pandemic seemingly in the rearview mirror, our attention has turned to whether the Fed is successful in walking the fine line of taming inflation without causing a recession. In the meantime we will continue to focus on what we can control, the most important of which is taking care of and expanding our customer base in the communities that we serve."
On February 8, 2022, BancFirst Corporation acquired Worthington National Bank ("Worthington"). Worthington is a national bank chartered by the Office of the Comptroller of the Currency (OCC) with one location in Arlington, Texas, one location in Colleyville, Texas and two Fort Worth, Texas locations. At acquisition, Worthington had approximately $488 million in total assets, $261 million in loans and $430 million in deposits. Upon acquisition, Worthington continued to operate as "Worthington National Bank" under a separate OCC charter and remain a separate subsidiary of BancFirst Corporation governed by its existing board of directors. BancFirst Corporation intends to provide an appropriate amount of capital or other support to increase Worthington's ability to approve larger loans and allow Worthington to continue to grow earning assets.
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 108 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 | ||||||||||
2022 | 2021 | 2021 | 2021 | 2021 | ||||||
1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | ||||||
Condensed Income Statements: | ||||||||||
Net interest income | $ 75,507 | $ 75,898 | $ 80,190 | $ 82,363 | $ 77,206 | |||||
Provision for (benefit from) credit losses | 2,936 | (224) | 1,483 | (9,949) | — | |||||
Non-interest income: | ||||||||||
Trust revenue | 3,506 | 3,336 | 3,210 | 3,264 | 3,102 | |||||
Service charges on deposits | 21,375 | 22,095 | 21,706 | 20,524 | 19,100 | |||||
Securities transactions | (3,915) | 630 | 150 | 172 | 95 | |||||
Income from sales of loans | 1,666 | 1,545 | 1,594 | 2,133 | 2,010 | |||||
Insurance commissions | 7,427 | 6,075 | 6,666 | 5,015 | 5,989 | |||||
Cash management | 3,131 | 3,115 | 3,127 | 3,068 | 3,003 | |||||
Other | 10,460 | 8,897 | 3,333 | 10,442 | 6,636 | |||||
Total noninterest income | 43,650 | 45,693 | 39,786 | 44,618 | 39,935 | |||||
Non-interest expense: | ||||||||||
Salaries and employee benefits | 43,932 | 42,887 | 42,267 | 41,992 | 39,577 | |||||
Occupancy expense, net | 4,403 | 4,521 | 5,086 | 4,528 | 4,348 | |||||
Depreciation | 4,775 | 4,708 | 4,207 | 4,133 | 3,877 | |||||
Amortization of intangible assets | 831 | 759 | 755 | 809 | 793 | |||||
Data processing services | 1,805 | 1,663 | 1,734 | 1,660 | 1,678 | |||||
Net expense from other real estate owned | 1,794 | 2,412 | 1,810 | 3,357 | 1,510 | |||||
Marketing and business promotion | 2,073 | 2,080 | 1,796 | 1,648 | 1,879 | |||||
Deposit insurance | 1,128 | 968 | 846 | 766 | 876 | |||||
Other | 11,771 | 16,783 | 11,713 | 15,130 | 10,425 | |||||
Total noninterest expense | 72,512 | 76,781 | 70,214 | 74,023 | 64,963 | |||||
Income before income taxes | 43,709 | 45,034 | 48,279 | 62,907 | 52,178 | |||||
Income tax expense | 7,794 | 6,866 | 9,529 | 14,715 | 9,658 | |||||
Net income | $ 35,915 | $ 38,168 | $ 38,750 | $ 48,192 | $ 42,520 | |||||
Per Common Share Data: | ||||||||||
Net income-basic | $ 1.10 | $ 1.17 | $ 1.18 | $ 1.47 | $ 1.30 | |||||
Net income-diluted | 1.08 | 1.15 | 1.16 | 1.45 | 1.27 | |||||
Cash dividends declared | 0.36 | 0.36 | 0.36 | 0.34 | 0.34 | |||||
Common shares outstanding | 32,725,587 | 32,603,118 | 32,572,217 | 32,784,513 | 32,771,013 | |||||
Average common shares outstanding - | ||||||||||
Basic | 32,666,916 | 32,585,784 | 32,744,104 | 32,779,227 | 32,756,852 | |||||
Diluted | 33,315,333 | 33,180,680 | 33,267,955 | 33,405,923 | 33,408,116 | |||||
Performance Ratios: | ||||||||||
Return on average assets | 1.22% | 1.33% | 1.37% | 1.79% | 1.69% | |||||
Return on average stockholders' equity | 12.33 | 13.02 | 13.42 | 17.42 | 15.90 | |||||
Net interest margin | 2.78 | 2.87 | 3.09 | 3.32 | 3.36 | |||||
Efficiency ratio | 60.85 | 63.15 | 58.52 | 58.29 | 55.46 | |||||
BancFirst Corporation | ||||||||||
2022 | 2021 | 2021 | 2021 | 2021 | ||||||
1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | ||||||
Balance Sheet Data: | ||||||||||
Total assets | $ 12,624,431 | $ 9,405,612 | $ 11,302,771 | $ 11,015,287 | $ 10,549,305 | |||||
Interest-bearing deposits with banks | 3,816,532 | 1,821,203 | 3,836,809 | 3,373,099 | 2,788,316 | |||||
Debt securities | 1,211,668 | 534,500 | 529,484 | 563,771 | 520,543 | |||||
Total loans | 6,507,977 | 6,194,218 | 6,037,886 | 6,207,262 | 6,380,108 | |||||
Allowance for credit losses | (87,239) | (83,936) | (86,463) | (83,963) | (90,860) | |||||
Deposits | 11,250,971 | 8,091,914 | 9,992,044 | 9,728,389 | 9,371,940 | |||||
Stockholders' equity | 1,167,802 | 1,171,734 | 1,146,874 | 1,131,591 | 1,094,671 | |||||
Book value per common share | 35.68 | 35.94 | 35.21 | 34.52 | 33.40 | |||||
Tangible book value per common share (non-GAAP)(1) | 29.60 | 30.80 | 30.04 | 29.35 | 28.27 | |||||
Balance Sheet Ratios: | ||||||||||
Average loans to deposits | 59.72% | 60.16% | 61.56% | 65.36% | 70.84% | |||||
Average earning assets to total assets | 91.92 | 92.13 | 92.13 | 92.01 | 91.54 | |||||
Average stockholders' equity to average assets | 9.86 | 10.19 | 10.22 | 10.25 | 10.64 | |||||
Asset Quality Data: | ||||||||||
Past due loans | $ 6,360 | $ 4,964 | $ 5,186 | $ 4,386 | $ 5,282 | |||||
Nonaccrual loans (5) | 17,453 | 20,892 | 26,607 | 29,802 | 35,326 | |||||
Restructured loans | 2,345 | 3,665 | 7,073 | 7,485 | 7,801 | |||||
Total nonperforming and restructured loans | 26,158 | 29,521 | 38,866 | 41,673 | 48,409 | |||||
Other real estate owned and repossessed assets | 39,729 | 39,553 | 39,060 | 40,183 | 30,320 | |||||
Total nonperforming and restructured assets | 65,887 | 69,074 | 77,926 | 81,856 | 78,729 | |||||
Nonaccrual loans to total loans | 0.27% | 0.34% | 0.44% | 0.48% | 0.55% | |||||
Nonaccrual loans to total Non-PPP loans (non-GAAP)(3) | 0.27 | 0.34 | 0.46 | 0.51 | 0.62 | |||||
Nonperforming and restructured loans to total loans | 0.40 | 0.48 | 0.64 | 0.67 | 0.76 | |||||
Nonperforming and restructured loans to total Non-PPP loans (non-GAAP)(3) | 0.40 | 0.48 | 0.67 | 0.71 | 0.85 | |||||
Nonperforming and restructured assets to total assets | 0.52 | 0.73 | 0.69 | 0.74 | 0.75 | |||||
Allowance to total loans | 1.34 | 1.36 | 1.43 | 1.35 | 1.42 | |||||
Allowance to total Non-PPP loans (non-GAAP)(3) | 1.35 | 1.37 | 1.48 | 1.44 | 1.60 | |||||
Allowance to nonaccrual loans | 499.83 | 401.76 | 324.96 | 281.73 | 257.20 | |||||
Allowance to nonperforming and restructured loans | 333.51 | 284.33 | 222.46 | 201.48 | 187.69 | |||||
Net charge-offs to average loans | 0.00 | 0.03 | 0.01 | 0.06 | 0.01 | |||||
Reconciliation of Tangible Book Value Per Common Share (non-GAAP)(2): | ||||||||||
Stockholders' equity | $ 1,167,802 | $ 1,171,734 | $ 1,146,874 | $ 1,131,591 | $ 1,094,671 | |||||
Less goodwill | 173,798 | 149,922 | 149,922 | 149,922 | 149,922 | |||||
Less intangible assets, net | 25,456 | 17,566 | 18,325 | 19,283 | 18,206 | |||||
Tangible stockholders' equity (non-GAAP) | $ 968,548 | $ 1,004,246 | $ 978,627 | $ 962,386 | $ 926,543 | |||||
Common shares outstanding | 32,725,587 | 32,603,118 | 32,572,217 | 32,784,513 | 32,771,013 | |||||
Tangible book value per common share (non-GAAP) | $ 29.60 | $ 30.80 | $ 30.04 | $ 29.35 | $ 28.27 | |||||
(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 | $ 6,507,977 | $ 6,194,218 | $ 6,037,886 | $ 6,207,262 | $ 6,380,108 | |||||
Less PPP loans | 30,438 | 80,412 | 201,208 | 368,620 | 713,714 | |||||
Total Non-PPP loans (non-GAAP) | $ 6,477,539 | $ 6,113,806 | $ 5,836,678 | $ 5,838,642 | $ 5,666,394 | |||||
Nonaccrual loans (5) | 17,453 | 20,892 | 26,607 | 29,802 | 35,326 | |||||
Nonaccrual loans to totalNon-PPP loans (non-GAAP) | 0.27% | 0.34% | 0.46% | 0.51% | 0.62% | |||||
Total nonperforming and restructured loans | 26,158 | 29,521 | 38,866 | 41,673 | 48,409 | |||||
Nonperforming and restructured loans to totalNon-PPP loans (non-GAAP) | 0.40% | 0.48% | 0.67% | 0.71% | 0.85% | |||||
Allowance for credit losses | (87,239) | (83,936) | (86,463) | (83,963) | (90,860) | |||||
Allowance to total Non-PPP loans (non-GAAP) | 1.35% | 1.37% | 1.48% | 1.44% | 1.60% | |||||
(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 $3.4 million of nonaccrual loans at March 31, 2022 | ||||||||||
BancFirst Corporation | |||||||
Three Months Ended | |||||||
March 31, 2022 | |||||||
Interest | Average | ||||||
Average | Income/ | Yield/ | |||||
Balance | Expense | Rate | |||||
ASSETS | |||||||
Earning assets: | |||||||
Loans | $ 6,359,795 | $ 73,066 | 4.66 | % | |||
Debt securities – taxable | 1,105,222 | 3,781 | 1.39 | ||||
Debt securities – tax exempt | 4,774 | 34 | 2.93 | ||||
Interest bearing deposits with banks and FFS | 3,548,875 | 1,758 | 0.20 | ||||
Total earning assets | 11,018,666 | 78,639 | 2.89 | ||||
Nonearning assets: | |||||||
Cash and due from banks | 269,015 | ||||||
Interest receivable and other assets | 785,248 | ||||||
Allowance for credit losses | (85,228) | ||||||
Total nonearning assets | 969,035 | ||||||
Total assets | $ 11,987,701 | ||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Interest bearing liabilities: | |||||||
Transaction deposits | $ 942,178 | $ 191 | 0.08 | % | |||
Savings deposits | 4,170,503 | 1,141 | 0.11 | ||||
Time deposits | 654,091 | 649 | 0.40 | ||||
Short-term borrowings | 2,459 | 1 | 0.12 | ||||
Subordinated debt | 85,992 | 1,030 | 4.86 | ||||
Total interest bearing liabilities | 5,855,223 | 3,012 | 0.21 | ||||
Interest free funds: | |||||||
Noninterest bearing deposits | 4,883,050 | ||||||
Interest payable and other liabilities | 67,688 | ||||||
Stockholders' equity | 1,181,740 | ||||||
Total interest free funds | 6,132,478 | ||||||
Total liabilities and stockholders' equity | $ 11,987,701 | ||||||
Net interest income | $ 75,627 | ||||||
Net interest spread | 2.68 | % | |||||
Effect of interest free funds | 0.10 | % | |||||
Net interest margin | 2.78 | % | |||||
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SOURCE BancFirst Corporation