OKLAHOMA CITY, Jan. 18, 2018 /PRNewswire/ -- BancFirst Corporation (NASDAQ GS:BANF) reported net income of $19.5 million, or $0.59 diluted earnings per share, for the fourth quarter of 2017 compared to net income of $18.6 million, or $0.58 diluted earnings per share, for the fourth quarter of 2016. Due to the signing of the Tax Cuts and Jobs Act, a write down on deferred tax assets of $4.3 million decreased earnings per share by approximately 14 cents. Net income for the fourth quarter also included a gain of $2.3 million, net of income tax and fees, from the sale of an investment by Council Oak Investment Corporation, a wholly-owned subsidiary of BancFirst, which added approximately 7 cents per share. Net income for the year ended December 31, 2017 was $86.4 million, or $2.65 per share, compared to $70.7 million, or $2.22 per share, for 2016.  Net income for the year ended December 31, 2017 also included the effects of favorable resolutions of three problem loans which resulted in principal recovery of $894,000 and unaccrued interest income of $2.7 million. Net income for the year ended December 31, 2016 included a gain on the sale of other real estate owned totaling $1.2 million.

The Company's net interest income for the fourth quarter of 2017 increased to $58.7 million compared to $51.6 million for the fourth quarter of 2016. The net interest margin for the quarter was 3.48% compared to 3.19% a year ago. Internal loan growth and the increase in the Fed Fund rate of 75 basis points during 2017 contributed to the higher net interest income and margin in 2017.  The provision for loan losses for the fourth quarter of 2017 increased to $3.3 million compared to $1.7 million a year ago. The provision for loan losses for the fourth quarter of 2017 was primarily driven by downgrades of commercial loans, which resulted in approximately $2.8 million in provision, and by loan growth, which resulted in approximately $550,000 in provision.  Net charge-offs increased slightly to 0.06% of average loans for the fourth quarter of 2017 compared to 0.02% for the fourth quarter of 2016, primarily due to one commercial loan.  Noninterest income for the quarter totaled $32.8 million, compared to $27.4 million last year. The increase in noninterest income was primarily due to the investment gain described above.  Noninterest expense for the quarter totaled $51.3 million compared to $48.2 million last year. The increase in noninterest expense was primarily due to salary increases in 2017 and compensation expense related to the sale of the Council Oak investment. The Company's effective tax rate was 47.2% compared to 36.1% for the fourth quarter of 2016. The increase in 2017 was due to the write down on deferred tax assets due to the signing of the Tax Cuts and Jobs Act.

For the year ended 2017, the Company's net interest income was $227.1 million compared to $203.8 million for 2016. The net interest margin for the year increased to 3.44% compared to 3.25% for the previous year. Internal loan growth and the increase in the Fed Fund rate of 75 basis points during 2017 contributed to the higher net interest income and margin in 2017. The provision for loan losses for 2017 was $8.5 million compared to $11.5 million a year ago. The Company reported slightly higher net charge-offs to average loans of 0.12% for 2017 compared to 0.10% for 2016. Noninterest income for 2017 totaled $118.1 million compared to $107.0 million for 2016. Noninterest expense was $200.4 million compared to $191.4 million for 2016. The Company's effective tax rate was 36.6% compared to 34.5% for 2016.

At December 31, 2017, the Company's total assets were $7.3 billion, $234.2 million above the December 31, 2016 total. Loans totaled $4.7 billion, an increase of $69.6 million over September 30, 2017, and an increase of $318.6 million over December 31, 2016.  Deposits were $6.4 billion at December 31, 2017, up $113.0 million from last quarter, and $167.0 million above the December 31, 2016 total. The Company's total stockholders' equity was $775.6 million, an increase of $64.5 million over December 31, 2016.

Asset quality remained strong during the fourth quarter of 2017.  Nonperforming and restructured assets were 0.61% of total assets at December 31, 2017 compared to 0.53% at September 30, 2017, and 0.56% at December 31, 2016. The allowance for loan losses to total loans was 1.09% at December 31, 2017, 1.10% at September 30, 2017, and 1.10% at December 31, 2016. The allowance to nonperforming and restructured loans was 130.6% compared to 153.5% at September 30, 2017, and 137.3% at year-end 2016.

Executive Chairman David Rainbolt commented, "Based on our 2017 earnings, the reduction in the federal tax rate to 21% would have added approximately $14 million to net income. Going forward, we will be raising our minimum wage and increasing the budgeted contribution to our Employee Stock Ownership Plan."

On January 11, 2018, the Company completed the previously announced acquisitions of two Oklahoma banking corporations. First Wagoner Corporation and its subsidiary bank, First Bank & Trust Company and First Chandler Corp. and its subsidiary bank, First Bank of Chandler had combined total assets of approximately $373 million. The Company exchanged a combination of cash and stock for these transactions.

BancFirst Corporation is an Oklahoma based financial services holding company.  The Company's principal subsidiary bank, BancFirst, is Oklahoma's largest state-chartered bank with 109 banking locations serving 59 communities across Oklahoma. 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)



2017


2017


2017


2017


2016



4th Qtr 


3rd Qtr 


2nd Qtr 


1st Qtr 


4th Qtr 


Condensed Income Statements: 











Net interest income 

$               58,699


$               57,233


$               56,439


$               54,768


$               51,553


Provision for loan losses 

3,323


3,276


1,841


72


1,672


Non-interest income:











Trust revenue

3,073


3,083


2,894


2,952


2,878


Service charges on deposits

16,693


16,633


16,448


15,778


16,005


Securities transactions

4,412


(22)


(330)


---


52


Income from sales of loans

741


732


816


632


705


Insurance commissions

3,917


4,603


3,728


4,563


3,797


Cash management

2,798


2,804


2,799


2,754


2,713


Other

1,199


1,336


1,628


1,406


1,281


Total noninterest income 

32,833


29,169


27,983


28,085


27,431













Non-interest expense:











Salaries and employee benefits

31,477


31,471


31,547


30,654


29,706


Occupancy expense, net

3,327


3,298


2,992


2,974


3,198


Depreciation

2,298


2,493


2,392


2,420


2,461


Amortization of intangible assets

547


547


547


547


548


Data processing services

1,252


1,110


1,097


1,195


1,229


Net expense from other real estate owned

101


68


202


50


197


Marketing and business promotion

1,825


1,790


1,559


2,215


1,978


Deposit insurance

578


553


542


588


569


Other

9,846


9,270


8,075


8,945


8,303


Total noninterest expense 

51,251


50,600


48,953


49,588


48,189


Income before income taxes 

36,958


32,526


33,628


33,193


29,123


Income tax expense 

17,461


10,816


10,446


11,143


10,503


Net income 

$               19,497


$               21,710


$               23,182


$               22,050


$               18,620


Per Common Share Data: 











Net income-basic 

$                   0.61


$                   0.68


$                   0.73


$                   0.70


$                   0.60


Net income-diluted 

0.59


0.67


0.71


0.68


0.58


Cash dividends declared

0.21


0.21


0.19


0.19


0.19


Common shares outstanding 

31,894,563


31,863,063


31,818,438


31,782,552


31,621,870


Average common shares outstanding -











   Basic

31,876,784


31,838,392


31,807,610


31,729,614


31,487,540


   Diluted

32,652,265


32,592,277


32,523,376


32,475,996


32,092,122


Performance Ratios: 











Return on average assets

1.07

%

1.22

%

1.31

%

1.27

%

1.07

%

Return on average equity

9.97


11.34


12.52


12.37


10.44


Net interest margin 

3.48


3.46


3.43


3.39


3.19


Efficiency ratio 

55.99


58.56


57.99


59.85


61.01













 

BancFirst Corporation

Summary Financial Information

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



Twelve months ended
December 31,



2017


2016*


Condensed Income Statements: 





Net interest income 

$             227,139


$             203,828


Provision for loan losses 

8,512


11,519


Non-interest income:





Trust revenue

12,002


10,630


Service charges on deposits

65,552


62,233


Securities transactions

4,060


(59)


Income from sales of loans

2,921


2,825


Insurance commissions

16,811


15,559


Cash management

11,155


10,616


Other

5,569


5,228


Total noninterest income 

118,070


107,032







Non-interest expense:





Salaries and employee benefits

125,149


119,662


Occupancy expense, net

12,591


12,313


Depreciation

9,603


10,114


Amortization of intangible assets

2,188


2,269


Data processing services

4,654


4,796


Net expense (income) from other real estate owned

421


(747)


Marketing and business promotion

7,389


7,236


Deposit insurance

2,261


2,904


Other

36,136


32,857


Total noninterest expense 

200,392


191,404


Income before income taxes 

136,305


107,937


Income tax expense 

49,866


37,263


Net income 

$               86,439


$               70,674


Per Common Share Data: 





Net income-basic 

$                   2.72


$                   2.27


Net income-diluted 

2.65


2.22


Cash dividends declared

0.80


0.74


Common shares outstanding 

31,894,563


31,621,870


Average common shares outstanding -





   Basic

31,813,572


31,230,340


   Diluted

32,568,105


31,822,524


Performance Ratios: 





Return on average assets

1.22

%

1.04

%

Return on average stockholders' equity

11.52


10.32


Net interest margin 

3.44


3.25


Efficiency ratio 

58.05


61.57




 

BancFirst Corporation

Summary Financial Information

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




2017


2017


2017


2017


2016



4th Qtr 


3rd Qtr 


2nd Qtr 


1st Qtr


4th Qtr 


Balance Sheet Data:






















Total assets

$  7,253,156


$  7,132,168


$  7,046,589


$    7,189,637


$    7,018,952


Interest-bearing deposits with banks

1,541,771


1,530,928


1,533,147


1,857,961


1,666,540


Securities

469,995


450,009


451,402


463,250


469,833


Total loans

4,728,168


4,658,525


4,587,454


4,398,529


4,409,550


Allowance for loan losses

(51,666)


(51,255)


(49,005)


(47,921)


(48,693)


Deposits

6,415,045


6,302,046


6,235,682


6,394,627


6,248,057


Stockholders' equity

775,629


764,414


748,462


729,873


711,094


Book value per common share

24.32


23.99


23.53


22.97


22.49


Tangible book value per common share (non-GAAP)(1)

22.28


21.93


21.44


20.86


20.36


Balance Sheet Ratios:











Average loans to deposits

73.63

%

73.59

%

71.47

%

70.13

%

70.98

%

Average earning assets to total assets

93.36


93.37


93.44


93.45


93.30


Average stockholders' equity to average assets

10.78


10.74


10.46


10.25


10.26


Asset Quality Data:











Past due loans

$         2,893


$         2,122


$        2,217


$           2,024


$           1,962


Nonaccrual loans

31,943


27,665


19,607


23,694


31,798


Restructured loans

4,720


3,603


3,561


2,203


1,713


Total nonperforming and restructured loans

39,556


33,390


25,385


27,921


35,473


Other real estate owned and repossessed assets

4,424


4,099


4,211


4,404


3,866


Total nonperforming and restructured assets

43,980


37,489


29,596


32,325


39,339


Nonperforming and restructured loans to total loans

0.84

%

0.72

%

0.55

%

0.63

%

0.80

%

Nonperforming and restructured assets to total assets

0.61


0.53


0.42


0.45


0.56


Allowance to total loans

1.09


1.10


1.07


1.09


1.10


Allowance to nonperforming and restructured loans

130.62


153.50


193.05


171.63


137.27


Net charge-offs to average loans

0.06


0.02


0.02


0.02


0.02













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











Stockholders' equity

$     775,629


$     764,414


$      748,462


$       729,873


$         711,094


Less goodwill

54,042


54,042


54,042


54,042


54,042


Less intangible assets, net

11,082


11,645


12,203


12,768


13,330


Tangible stockholders' equity (non-GAAP)

$     710,505


$     698,727


$     682,217


$      663,063


$         643,722


Common shares outstanding

31,894,563


31,863,063


31,818,438


31,782,552


31,621,870


Tangible book value per common share (non-GAAP)

$         22.28


$         21.93


$          21.44


$          20.86


$             20.36













(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.


 

BancFirst Corporation


Consolidated Average Balance Sheets


And Interest Margin Analysis


Taxable Equivalent Basis


(Dollars in thousands - Unaudited)





Three Months Ended


Twelve Months Ended



December 31, 2017


December 31, 2017





Interest


Average




Interest


Average



Average


Income/


Yield/


Average


Income/


Yield/



Balance


Expense


Rate


Balance


Expense


Rate


ASSETS













Earning assets:













Loans

$           4,682,321


$           57,769


4.89

%

$        4,547,207


$         222,900


4.90

%

Securities – taxable

418,655


1,741


1.65


425,372


7,171


1.69


Securities – tax exempt

31,324


285


3.60


31,909


1,134


3.55


Interest bearing deposits with banks

1,588,795


5,294


1.32


1,635,248


18,138


1.11


Total earning assets

6,721,095


65,089


3.84


6,639,736


249,343


3.76















Nonearning assets:













Cash and due from banks

180,484






176,364






Interest receivable and other assets

348,422






341,549






Allowance for loan losses

(51,122)






(49,269)






Total nonearning assets

477,784






468,644






Total assets

$            7,198,879






$        7,108,380



















LIABILITIES AND STOCKHOLDERS' EQUITY













Interest bearing liabilities:













Transaction deposits

$           755,860


$               364


0.19

%

$           775,851


$             1,160


0.15

%

Savings deposits

2,404,099


3,697


0.61


2,311,512


12,251


0.53


Time deposits

661,109


1,457


0.87


674,132


5,379


0.80


Short-term borrowings

1,390


4


1.16


1,776


17


0.97


Junior subordinated debentures

31,959


533


6.62


31,959


2,122


6.64


Total interest bearing liabilities

3,854,417


6,055


0.62


3,795,230


20,929


0.55















Interest free funds:













Noninterest bearing deposits

2,538,218






2,534,876






Interest payable and other liabilities

30,355






27,696






Stockholders' equity

775,889






750,578






Total interest free  funds

3,344,462






3,313,150






Total liabilities and stockholders' equity

$            7,198,879






$        7,108,380






Net interest income



$           59,034






$         228,414




Net interest spread





3.22

%





3.20

%

Effect of interest free funds





0.26

%





0.24

%

Net interest margin





3.48

%





3.44

%

 

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SOURCE BancFirst


Source: BancFirst