OKLAHOMA CITY, Jan. 20, 2022 /PRNewswire/ -- BancFirst Corporation (NASDAQ GS: BANF) reported net income of $38.2 million, or $1.15 diluted earnings per share, for the fourth quarter of 2021 compared to net income of $35.4 million, or $1.06 diluted earnings per share, for the fourth quarter of 2020. The Company recorded a net benefit from reversal of provisions for credit losses of $224,000 for the three months ended December 31, 2021 compared to a provision for credit losses of $5.0 million for the three months ended December 31, 2020. Net income for the year ended December 31, 2021 was $167.6 million, or $5.03 diluted earnings per share, compared to $99.6 million, or $3.00 diluted earnings per share, for 2020. The Company recorded a net benefit from reversal of provisions for credit losses of $8.7 million for 2021 compared to a provision for credit losses of $62.6 million for the prior year.
BancFirst Corporation Executive Chairman David Rainbolt commented, "I have never seen back to back years with more financial noise than 2020 and 2021. Pandemic provisions and reversals thereof, the government's fiscal stimulus, and Federal Reserve rate reductions affected both our balance sheet and income statement in dramatic ways. The net effect is that we find ourselves with an extremely liquid balance sheet and with overnight rates still close to zero. It will be interesting to see what the consequences are as the US economy reverts to the mean."
The Company's net interest income for the fourth quarter of 2021 decreased to $75.9 million compared to $79.5 million for the fourth quarter of 2020, largely as a result of a decrease of $3.3 million in fee income from the Paycheck Protection Program (PPP). The net interest margin for the quarter was 2.87% compared to 3.55% a year ago. Noninterest income for the quarter totaled $45.7 million, compared to $35.4 million last year. The increase in noninterest income was mostly attributable to $3.3 million of income resulting from the application of equity method accounting related to an equity interest received in the process of a loan collection, $2.8 million in rental income from other real estate property, and a $1.8 million increase in income from debit card interchange fees. Noninterest expense for the quarter increased to $76.8 million compared to $65.6 million last year because of the increase in salaries and employee benefits of approximately $2.1 million, $2.3 million of other real estate property operating costs, $2.1 million amortization of investment in tax credits purchased in the fourth quarter, $1.1 million incentive to customers that participated in the year-end sweep program and approximately $1.0 million in depreciation largely from the Company's new corporate headquarters. The Company's effective tax rate was 15.3% compared to 20.3% for the fourth quarter of 2020. The lower effective tax rate was due to the recognition of the aforementioned $2.6 million in tax credits.
At December 31, 2021, the Company's total assets were $9.4 billion, an increase of $193.3 million from December 31, 2020. Loans totaled $6.2 billion, a decrease of $254.0 million from year-end 2020 due to payoffs of approximately $572.3 million in PPP loans, which were partially offset by approximately $126 million of acquired loans from the First National Bank and Trust Company of Vinita, Oklahoma. Absent PPP loans and acquired loans, the Company's loans increased $213.1 million or 3.7% in 2021. Deposits totaled $8.1 billion, an increase of $27.2 million from December 31, 2020. The increase in assets and deposits was predominantly related to government stimulus payments. At December 31, 2021, the remaining balance of PPP loans was $80.4 million. The Company's total stockholders' equity was $1.2 billion, an increase of $103.8 million over December 31, 2020. Off-balance sheet sweep accounts totaled $5.1 billion at December 31, 2021 compared to $2.8 billion at December 31, 2020.
Nonaccrual loans represented 0.34% of total loans at December 31, 2021, down from 0.58% at year-end 2020. Net charge-offs for the quarter were negligible, compared to 0.30% in the fourth quarter of 2020. The allowance for credit losses to total loans was 1.36% at December 31, 2021 compared to 1.42% at year-end 2020, and the allowance for credit losses to nonaccrual loans was 401.76% compared to 243.35% at year-end 2020. At December 31, 2021, the Company's nonaccrual loans were $20.9 million compared to $37.5 million at year-end 2020. At December 31, 2021, the Company's other real estate owned (OREO) increased $7.3 million from December 31, 2020.
BancFirst Corporation CEO David Harlow commented, "2021 was a record earnings year for the Company buoyed by one-time PPP fees and a negative loan loss provision as a result of a more benign credit environment than envisioned at the beginning of the year. 2022's outlook includes an improved margin as a result of expected fed tightening; however, the Company is well positioned for whatever the future holds with our strong asset quality, liquidity and capital base."
On October 29, 2021, BancFirst Corporation entered into an agreement to acquire 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. As of September 30, 2021, Worthington had approximately $462.6 million in total assets, $269.0 million in loans and $421.5 million in deposits. The acquisition is expected to be completed during the first quarter of 2022. Upon acquisition, Worthington will continue 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 their assets.
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 | 2021 | 2020 | ||||||
4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | 4th Qtr | ||||||
Condensed Income Statements: | ||||||||||
Net interest income | $ 75,898 | $ 80,190 | $ 82,363 | $ 77,206 | $ 79,535 | |||||
(Benefit from) provision for credit losses | (224) | 1,483 | (9,949) | — | 4,992 | |||||
Non-interest income: | ||||||||||
Trust revenue | 3,336 | 3,210 | 3,264 | 3,102 | 2,976 | |||||
Service charges on deposits | 22,095 | 21,706 | 20,524 | 19,100 | 19,796 | |||||
Securities transactions | 630 | 150 | 172 | 95 | 156 | |||||
Income from sales of loans | 1,545 | 1,594 | 2,133 | 2,010 | 1,852 | |||||
Insurance commissions | 6,075 | 6,666 | 5,015 | 5,989 | 5,680 | |||||
Cash management | 3,115 | 3,127 | 3,068 | 3,003 | 3,135 | |||||
Other | 8,897 | 3,333 | 10,442 | 6,636 | 1,825 | |||||
Total noninterest income | 45,693 | 39,786 | 44,618 | 39,935 | 35,420 | |||||
Non-interest expense: | ||||||||||
Salaries and employee benefits | 42,887 | 42,267 | 41,992 | 39,577 | 40,750 | |||||
Occupancy expense, net | 4,521 | 5,086 | 4,528 | 4,348 | 4,533 | |||||
Depreciation | 4,708 | 4,207 | 4,133 | 3,877 | 3,779 | |||||
Amortization of intangible assets | 759 | 755 | 809 | 793 | 915 | |||||
Data processing services | 1,663 | 1,734 | 1,660 | 1,678 | 1,763 | |||||
Net expense from other real estate owned | 2,412 | 1,810 | 3,357 | 1,510 | 420 | |||||
Marketing and business promotion | 2,080 | 1,796 | 1,648 | 1,879 | 1,671 | |||||
Deposit insurance | 968 | 846 | 766 | 876 | 857 | |||||
Other | 16,783 | 11,713 | 15,130 | 10,425 | 10,923 | |||||
Total noninterest expense | 76,781 | 70,214 | 74,023 | 64,963 | 65,611 | |||||
Income before income taxes | 45,034 | 48,279 | 62,907 | 52,178 | 44,352 | |||||
Income tax expense | 6,866 | 9,529 | 14,715 | 9,658 | 8,994 | |||||
Net income | $ 38,168 | $ 38,750 | $ 48,192 | $ 42,520 | $ 35,358 | |||||
Per Common Share Data: | ||||||||||
Net income-basic | $ 1.17 | $ 1.18 | $ 1.47 | $ 1.30 | $ 1.08 | |||||
Net income-diluted | 1.15 | 1.16 | 1.45 | 1.27 | 1.06 | |||||
Cash dividends declared | 0.36 | 0.36 | 0.34 | 0.34 | 0.34 | |||||
Common shares outstanding | 32,603,118 | 32,572,217 | 32,784,513 | 32,771,013 | 32,719,852 | |||||
Average common shares outstanding - | ||||||||||
Basic | 32,585,784 | 32,744,104 | 32,779,227 | 32,756,852 | 32,690,296 | |||||
Diluted | 33,180,680 | 33,267,955 | 33,405,923 | 33,408,116 | 33,275,550 | |||||
Performance Ratios: | ||||||||||
Return on average assets | 1.33% | 1.37% | 1.79% | 1.69% | 1.45% | |||||
Return on average stockholders' equity | 13.02 | 13.42 | 17.42 | 15.90 | 13.25 | |||||
Net interest margin | 2.87 | 3.09 | 3.32 | 3.36 | 3.55 | |||||
Efficiency ratio | 63.15 | 58.52 | 58.29 | 55.46 | 57.08 | |||||
BancFirstCorporation | ||||
Summary Financial Information | ||||
(Dollars in thousands, except per share and share data - Unaudited) | ||||
Twelve months ended | ||||
December 31, | ||||
2021 | 2020 | |||
Condensed Income Statements: | ||||
Net interest income | $ 315,657 | $ 306,668 | ||
(Benefit from) provision for credit losses | (8,690) | 62,648 | ||
Non-interest income: | ||||
Trust revenue | 12,912 | 13,130 | ||
Service charges on deposits | 83,425 | 74,438 | ||
Securities transactions | 1,047 | (389) | ||
Income from sales of loans | 7,282 | 6,067 | ||
Insurance commissions | 23,745 | 20,996 | ||
Cash management | 12,313 | 15,411 | ||
Other | 29,308 | 7,569 | ||
Total noninterest income | 170,032 | 137,222 | ||
Non-interest expense: | ||||
Salaries and employee benefits | 166,723 | 164,727 | ||
Occupancy expense, net | 18,483 | 16,421 | ||
Depreciation | 16,925 | 14,609 | ||
Amortization of intangible assets | 3,116 | 3,815 | ||
Data processing services | 6,735 | 6,753 | ||
Net expense (income) from other real estate owned | 9,089 | (1,531) | ||
Marketing and business promotion | 7,403 | 6,996 | ||
Deposit insurance | 3,456 | 2,081 | ||
Other | 54,051 | 43,859 | ||
Total noninterest expense | 285,981 | 257,730 | ||
Income before income taxes | 208,398 | 123,512 | ||
Income tax expense | 40,768 | 23,926 | ||
Net income | $ 167,630 | $ 99,586 | ||
Per Common Share Data: | ||||
Net income-basic | $ 5.12 | $ 3.05 | ||
Net income-diluted | 5.03 | 3.00 | ||
Cash dividends declared | 1.40 | 1.32 | ||
Common shares outstanding | 32,603,118 | 32,719,852 | ||
Average common shares outstanding - | ||||
Basic | 32,716,099 | 32,672,522 | ||
Diluted | 33,314,146 | 33,210,952 | ||
Performance Ratios: | ||||
Return on average assets | 1.54% | 1.06% | ||
Return on average stockholders' equity | 14.88 | 9.52 | ||
Net interest margin | 3.15 | 3.57 | ||
Efficiency ratio | 58.88 | 58.06 | ||
BancFirstCorporation | ||||||||||
Summary Financial Information | ||||||||||
(Dollars in thousands, except per share and share data - Unaudited) | ||||||||||
2021 | 2021 | 2021 | 2021 | 2020 | ||||||
4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | 4th Qtr | ||||||
Balance Sheet Data: | ||||||||||
Total assets | $ 9,405,612 | $ 11,302,771 | $ 11,015,287 | $ 10,549,305 | $ 9,212,357 | |||||
Interest-bearing deposits with banks | 1,821,203 | 3,836,809 | 3,373,099 | 2,788,316 | 1,336,394 | |||||
Debt securities | 534,500 | 529,484 | 563,771 | 520,543 | 555,196 | |||||
Total loans | 6,194,218 | 6,037,886 | 6,207,262 | 6,380,108 | 6,448,225 | |||||
Allowance for credit losses | (83,936) | (86,463) | (83,963) | (90,860) | (91,366) | |||||
Deposits | 8,091,914 | 9,992,044 | 9,728,389 | 9,371,940 | 8,064,704 | |||||
Stockholders' equity | 1,171,734 | 1,146,874 | 1,131,591 | 1,094,671 | 1,067,885 | |||||
Book value per common share | 35.94 | 35.21 | 34.52 | 33.40 | 32.64 | |||||
Tangible book value per common share (non-GAAP)(1) | 30.80 | 30.04 | 29.35 | 28.27 | 27.47 | |||||
Balance Sheet Ratios: | ||||||||||
Average loans to deposits | 60.16% | 61.56% | 65.36% | 70.84% | 77.02% | |||||
Average earning assets to total assets | 92.13 | 92.13 | 92.01 | 91.54 | 91.82 | |||||
Average stockholders' equity to average assets | 10.19 | 10.22 | 10.25 | 10.64 | 10.91 | |||||
Asset Quality Data: | ||||||||||
Past due loans | $ 4,964 | $ 5,186 | $ 4,386 | $ 5,282 | $ 4,802 | |||||
Nonaccrual loans (5) | 20,892 | 26,607 | 29,802 | 35,326 | 37,545 | |||||
Restructured loans | 3,665 | 7,073 | 7,485 | 7,801 | 7,784 | |||||
Total nonperforming and restructured loans | 29,521 | 38,866 | 41,673 | 48,409 | 50,131 | |||||
Other real estate owned and repossessed assets | 39,553 | 39,060 | 40,183 | 30,320 | 32,480 | |||||
Total nonperforming and restructured assets | 69,074 | 77,926 | 81,856 | 78,729 | 82,611 | |||||
Nonaccrual loans to total loans | 0.34% | 0.44% | 0.48% | 0.55% | 0.58% | |||||
Nonaccrual loans to total Non-PPP loans (non-GAAP)(3) | 0.34 | 0.46 | 0.51 | 0.62 | 0.65 | |||||
Nonperforming and restructured loans to total loans | 0.48 | 0.64 | 0.67 | 0.76 | 0.78 | |||||
Nonperforming and restructured loans to total Non-PPP loans (non-GAAP)(3) | 0.48 | 0.67 | 0.71 | 0.85 | 0.86 | |||||
Nonperforming and restructured assets to total assets | 0.73 | 0.69 | 0.74 | 0.75 | 0.90 | |||||
Allowance to total loans | 1.36 | 1.43 | 1.35 | 1.42 | 1.42 | |||||
Allowance to total Non-PPP loans (non-GAAP)(3) | 1.37 | 1.48 | 1.44 | 1.60 | 1.58 | |||||
Allowance to nonaccrual loans | 401.76 | 324.96 | 281.73 | 257.20 | 243.35 | |||||
Allowance to nonperforming and restructured loans | 284.33 | 222.46 | 201.48 | 187.69 | 182.26 | |||||
Net charge-offs to average loans | 0.03 | 0.01 | 0.06 | 0.01 | 0.30 | |||||
Reconciliation of Tangible Book Value Per Common Share (non-GAAP)(2): | ||||||||||
Stockholders' equity | $ 1,171,734 | $ 1,146,874 | $ 1,131,591 | $ 1,094,671 | $ 1,067,885 | |||||
Less goodwill | 149,922 | 149,922 | 149,922 | 149,922 | 149,922 | |||||
Less intangible assets, net | 17,566 | 18,325 | 19,283 | 18,206 | 18,999 | |||||
Tangible stockholders' equity (non-GAAP) | $ 1,004,246 | $ 978,627 | $ 962,386 | $ 926,543 | $ 898,964 | |||||
Common shares outstanding | 32,603,118 | 32,572,217 | 32,784,513 | 32,771,013 | 32,719,852 | |||||
Tangible book value per common share (non-GAAP) | $ 30.80 | $ 30.04 | $ 29.35 | $ 28.27 | $ 27.47 | |||||
(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 |
Reconciliation of Non-PPP loan ratios (non-GAAP)(4): | ||||||||||
Total loans | $ 6,194,218 | $ 6,037,886 | $ 6,207,262 | $ 6,380,108 | $ 6,448,225 | |||||
Less PPP loans | 80,412 | 201,208 | 368,620 | 713,714 | 652,693 | |||||
Total Non-PPP loans (non-GAAP) | $ 6,113,806 | $ 5,836,678 | $ 5,838,642 | $ 5,666,394 | $ 5,795,532 | |||||
Nonaccrual loans (5) | 20,892 | 26,607 | 29,802 | 35,326 | 37,545 | |||||
Nonaccrual loans to total Non-PPP loans (non-GAAP) | 0.34% | 0.46% | 0.51% | 0.62% | 0.65% | |||||
Total nonperforming and restructured loans | 29,521 | 38,866 | 41,673 | 48,409 | 50,131 | |||||
Nonperforming and restructured loans to total Non-PPP loans (non-GAAP) | 0.48% | 0.67% | 0.71% | 0.85% | 0.86% | |||||
Allowance for credit losses | (83,936) | (86,463) | (83,963) | (90,860) | (91,366) | |||||
Allowance to total Non-PPP loans (non-GAAP) | 1.37% | 1.48% | 1.44% | 1.60% | 1.58% | |||||
(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 | ||||||||||
(5) Government Agencies guarantee approximately $2.5 million of nonaccrual loans at December 31, 2021. |
BancFirst Corporation Consolidated Average Balance Sheets And Interest Margin Analysis Taxable Equivalent Basis (Dollars in thousands - Unaudited)
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Three Months Ended | Twleve Months Ended | ||||||||||||
December 31, 2021 | December 31, 2021 | ||||||||||||
Interest | Average | Interest | Average | ||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||
Balance | Expense | Rate | Balance | Expense | Rate | ||||||||
ASSETS | |||||||||||||
Earning assets: | |||||||||||||
Loans | $ 6,080,771 | $ 75,884 | 4.95 | % | $ 6,220,192 | $ 316,618 | 5.09 | % | |||||
Debt securities – taxable | 559,070 | 1,548 | 1.10 | 538,157 | 6,327 | 1.18 | |||||||
Debt securities – tax exempt | 4,967 | 36 | 2.89 | 11,372 | 258 | 2.27 | |||||||
Interest bearing deposits with banks and FFS | 3,872,577 | 1,505 | 0.15 | 3,268,443 | 4,366 | 0.13 | |||||||
Total earning assets | 10,517,385 | 78,973 | 2.98 | 10,038,164 | 327,569 | 3.26 | |||||||
Nonearning assets: | |||||||||||||
Cash and due from banks | 271,834 | 271,004 | |||||||||||
Interest receivable and other assets | 711,908 | 694,191 | |||||||||||
Allowance for credit losses | (84,802) | (88,028) | |||||||||||
Total nonearning assets | 898,940 | 877,167 | |||||||||||
Total assets | $ 11,416,325 | $ 10,915,331 | |||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||
Interest bearing liabilities: | |||||||||||||
Transaction deposits | $ 887,619 | $ 169 | 0.08 | % | $ 848,535 | $ 634 | 0.07 | % | |||||
Savings deposits | 3,920,225 | 1,021 | 0.10 | 3,736,901 | 4,055 | 0.11 | |||||||
Time deposits | 644,401 | 729 | 0.45 | 654,801 | 3,543 | 0.54 | |||||||
Short-term borrowings | 2,649 | 1 | 0.11 | 2,608 | 2 | 0.08 | |||||||
Subordinated debt | 85,978 | 1,030 | 4.75 | 56,793 | 3,130 | 5.51 | |||||||
Total interest bearing liabilities | 5,540,872 | 2,950 | 0.21 | 5,299,638 | 11,364 | 0.21 | |||||||
Interest free funds: | |||||||||||||
Noninterest bearing deposits | 4,655,240 | 4,437,352 | |||||||||||
Interest payable and other liabilities | 56,818 | 52,069 | |||||||||||
Stockholders' equity | 1,163,395 | 1,126,272 | |||||||||||
Total interest free funds | 5,875,453 | 5,615,693 | |||||||||||
Total liabilities and stockholders' equity | $ 11,416,325 | $ 10,915,331 | |||||||||||
Net interest income | $ 76,023 | $ 316,205 | |||||||||||
Net interest spread | 2.77 | % | 3.05 | % | |||||||||
Effect of interest free funds | 0.10 | % | 0.10 | % | |||||||||
Net interest margin | 2.87 | % | 3.15 | % | |||||||||
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SOURCE BancFirst