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 | ||||||||||
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 | ||||||||||
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 | ||||||||||
(5) Government Agencies guarantee approximately $2.0 million of nonaccrual loans at September 30, 2022. |
BancFirst Corporation | |||||||||||||
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