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| 8-K - FORM 8-K - BANCFIRST CORP /OK/ | v384136_8k.htm |
BancFirst Corporation Reports Second Quarter Earnings
OKLAHOMA CITY, July 17, 2014 /PRNewswire/ -- BancFirst Corporation (NASDAQ GS: BANF) reported net income of $14.7 million, or $0.92 diluted earnings per share, for the second quarter of 2014, compared to net income of $12.6 million, or $0.82 diluted earnings per share, for the second quarter of 2013. Net income for the year to-date was $29.3 million, or $1.86 per share, compared to $26.0 million, or $1.68 per share, for the first half of 2013.
The Company's net interest income for the second quarter of 2014 was $45.5 million compared to $40.6 million for the second quarter of 2013. The net interest margin for the quarter remained relatively flat at 3.10% compared to 3.08% a year ago, as interest rates have remained at historically low levels. The provision for loan losses for the second quarter was $3.1 million compared to $516,000 a year ago. The higher provision for loan losses in the second quarter was due in part to an additional $2 million allowance for a single commercial loan that was adversely graded during the quarter. The Company reported net recoveries for the quarter of 0.01% of average loans, compared to net charge-offs of 0.01% for the same period the prior year. Noninterest income for the quarter totaled $23.6 million compared to $21.7 million for the second quarter of 2013. Noninterest expense was $45.9 million compared to $42.5 million a year ago. The effective income tax rate for the second quarter of 2014 decreased to 27% compared to 35% for the second quarter of 2013, primarily due to an investment in federal and state historic rehabilitation tax credits.
At June 30, 2014, the Company's total assets were $6.4 billion, up $329.7 million, or 5.5%, from $6.0 billion at December 31, 2013. Securities increased $42.8 million to a total of $570.4 million. Loans totaled $3.7 billion, up $278.8 million from December 31, 2013. Deposits totaled $5.7 billion, up $302.1 million. The Company's total stockholders' equity was $580.5 million, an increase of $23.5 million, or 4.2%, over December 31, 2013.
The Company's asset quality remained strong. Nonperforming and restructured assets were 0.72% of total assets, compared to 0.69% at December 31, 2013. The allowance to total loans was 1.18% compared to 1.15% at year end 2013.
As previously reported, on January 24, 2014, BancFirst, a wholly-owned subsidiary of BancFirst Corporation, assumed all of the deposits and purchased certain assets of The Bank of Union, El Reno, Oklahoma ("The Bank of Union") from the FDIC.
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 95 banking locations serving more than 52 communities across Oklahoma. More information can be found at www.bancfirst.com.
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) | ||||||||||
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| 2014 |
| 2014 |
| 2013 |
| 2013 |
| 2013 |
|
|
| 2nd Qtr |
| 1st Qtr |
| 4th Qtr |
| 3rd Qtr |
| 2nd Qtr |
|
Condensed Income Statements: |
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|
|
|
|
|
|
Net interest income | $ 45,489 |
| $ 42,029 |
| $ 41,921 |
| $ 40,712 |
| $ 40,630 |
|
Provision for loan losses | 3,129 |
| 1,218 |
| 454 |
| (12) |
| 516 |
|
Non-interest income: |
|
|
|
|
|
|
|
|
|
|
Trust revenue | 2,315 |
| 2,151 |
| 2,029 |
| 2,122 |
| 2,015 |
|
Service charges on deposits | 14,360 |
| 13,458 |
| 13,615 |
| 13,575 |
| 12,924 |
|
Securities transactions | 85 |
| 450 |
| 79 |
| 90 |
| 129 |
|
Income from sales of loans | 467 |
| 351 |
| 367 |
| 560 |
| 691 |
|
Insurance commissions | 3,262 |
| 3,966 |
| 3,112 |
| 3,892 |
| 3,045 |
|
Cash management | 1,703 |
| 1,585 |
| 1,581 |
| 1,620 |
| 1,626 |
|
Other | 1,419 |
| 1,601 |
| 1,452 |
| 1,793 |
| 1,303 |
|
Total noninterest income | 23,611 |
| 23,562 |
| 22,235 |
| 23,652 |
| 21,733 |
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Non-interest expense: |
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Salaries and employee benefits | 27,478 |
| 25,938 |
| 25,777 |
| 26,094 |
| 25,085 |
|
Occupancy and fixed assets expense, net | 2,784 |
| 2,789 |
| 2,786 |
| 2,768 |
| 2,501 |
|
Depreciation | 2,375 |
| 2,349 |
| 2,439 |
| 2,307 |
| 2,358 |
|
Amortization of intangible assets | 458 |
| 408 |
| 374 |
| 424 |
| 424 |
|
Data processing services | 1,185 |
| 1,170 |
| 1,198 |
| 1,173 |
| 1,229 |
|
Net expense from other real estate owned | (406) |
| 550 |
| (436) |
| 105 |
| 643 |
|
Marketing and business promotion | 1,661 |
| 1,716 |
| 2,021 |
| 1,668 |
| 1,456 |
|
Deposit insurance | 873 |
| 773 |
| 768 |
| 750 |
| 742 |
|
Other | 9,449 |
| 8,143 |
| 8,927 |
| 8,032 |
| 8,017 |
|
Total noninterest expense | 45,857 |
| 43,836 |
| 43,854 |
| 43,321 |
| 42,455 |
|
Income before income taxes | 20,114 |
| 20,537 |
| 19,848 |
| 21,055 |
| 19,392 |
|
Income tax expense | 5,426 |
| 5,880 |
| 5,987 |
| 6,564 |
| 6,799 |
|
Net income | $ 14,688 |
| $ 14,657 |
| $ 13,861 |
| $ 14,491 |
| $ 12,593 |
|
Per Common Share Data: |
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Net income-basic | $ 0.94 |
| $ 0.96 |
| $ 0.91 |
| $ 0.94 |
| $ 0.83 |
|
Net income-diluted | 0.92 |
| 0.94 |
| 0.88 |
| 0.93 |
| 0.82 |
|
Cash dividends declared | 0.31 |
| 0.31 |
| 0.31 |
| 0.31 |
| 0.29 |
|
Common shares outstanding | 15,398,603 |
| 15,363,728 |
| 15,333,622 |
| 15,298,035 |
| 15,255,864 |
|
Average common shares outstanding - |
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Basic | 15,468,511 |
| 15,342,486 |
| 15,315,951 |
| 15,287,535 |
| 15,232,129 |
|
Diluted | 15,832,180 |
| 15,660,921 |
| 15,640,433 |
| 15,594,881 |
| 15,479,749 |
|
Performance Ratios: |
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Return on average assets | 0.92 | % | 0.96 | % | 0.91 | % | 0.99 | % | 0.88 | % |
Return on average equity | 10.20 |
| 10.51 |
| 9.93 |
| 10.62 |
| 9.48 |
|
Net interest margin | 3.10 |
| 2.98 |
| 3.00 |
| 3.01 |
| 3.08 |
|
Efficiency ratio | 66.36 |
| 66.83 |
| 68.35 |
| 67.31 |
| 68.08 |
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BancFirst Corporation | ||||||||||
Summary Financial Information | ||||||||||
(Dollars in thousands, except per share and share data - Unaudited) | ||||||||||
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| Six months ended June 30, |
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| 2014 |
| 2013 |
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Condensed Income Statements: |
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Net interest income |
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|
|
|
| $ 87,518 |
| $ 80,886 |
|
Provision for loan losses |
|
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|
|
|
| 4,347 |
| 816 |
|
Non-interest income: |
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|
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|
|
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Trust revenue |
|
|
|
|
|
| 4,466 |
| 3,921 |
|
Service charges on deposits |
|
|
|
|
|
| 27,818 |
| 25,260 |
|
Securities transactions |
|
|
|
|
|
| 535 |
| 251 |
|
Income from sales of loans |
|
|
|
|
|
| 818 |
| 1,379 |
|
Insurance commissions |
|
|
|
|
|
| 7,228 |
| 7,090 |
|
Cash management |
|
|
|
|
|
| 3,288 |
| 3,049 |
|
Other |
|
|
|
|
|
| 3,020 |
| 3,318 |
|
Total noninterest income |
|
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|
|
| 47,173 |
| 44,268 |
|
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Non-interest expense: |
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|
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|
|
|
|
|
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Salaries and employee benefits |
|
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|
|
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| 53,416 |
| 50,294 |
|
Occupancy and fixed assets expense, net |
|
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|
|
|
| 5,573 |
| 5,081 |
|
Depreciation |
|
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|
|
|
| 4,724 |
| 4,666 |
|
Amortization of intangible assets |
|
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|
|
| 866 |
| 867 |
|
Data processing services |
|
|
|
|
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| 2,355 |
| 2,414 |
|
Net expense from other real estate owned |
|
|
|
|
|
| 144 |
| 765 |
|
Marketing and business promotion |
|
|
|
|
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| 3,377 |
| 2,963 |
|
Deposit insurance |
|
|
|
|
|
| 1,646 |
| 1,485 |
|
Other |
|
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|
|
|
| 17,592 |
| 15,864 |
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Total noninterest expense |
|
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|
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| 89,693 |
| 84,399 |
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Income before income taxes |
|
|
|
|
|
| 40,651 |
| 39,939 |
|
Income tax expense |
|
|
|
|
|
| 11,306 |
| 13,974 |
|
Net income |
|
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|
|
| $ 29,345 |
| $ 25,965 |
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Per Common Share Data: |
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Net income-basic |
|
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|
|
|
| $ 1.90 |
| $ 1.70 |
|
Net income-diluted |
|
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|
|
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| 1.86 |
| 1.68 |
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Cash dividends declared |
|
|
|
|
|
| 0.62 |
| 0.58 |
|
Common shares outstanding |
|
|
|
|
|
| 15,398,603 |
| 15,255,864 |
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Average common shares outstanding - |
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Basic |
|
|
|
|
|
| 15,405,847 |
| 15,235,397 |
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Diluted |
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|
|
| 15,759,789 |
| 15,481,870 |
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Performance Ratios: |
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Return on average assets |
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| 0.94 | % | 0.91 | % |
Return on average stockholders' equity |
|
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|
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| 10.35 |
| 9.89 |
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Net interest margin |
|
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|
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| 3.04 |
| 3.08 |
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Efficiency ratio |
|
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|
|
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| 66.59 |
| 67.44 |
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BancFirst Corporation | ||||||||||
Summary Financial Information | ||||||||||
(Dollars in thousands, except per share data - Unaudited) | ||||||||||
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|
| 2014 |
| 2014 |
| 2013 |
| 2013 |
| 2013 |
|
|
| 2nd Qtr |
| 1st Qtr |
| 4th Qtr |
| 3rd Qtr |
| 2nd Qtr |
|
Balance Sheet Data: |
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Total assets | $ 6,368,633 |
| $ 6,375,041 |
| $ 6,038,974 |
| $ 5,926,730 |
| $ 5,749,666 |
|
Interest-bearing deposits with banks | 1,622,810 |
| 1,737,559 |
| 1,660,988 |
| 1,622,619 |
| 1,528,505 |
|
Securities | 570,429 |
| 587,018 |
| 527,627 |
| 474,640 |
| 520,424 |
|
Total loans | 3,665,908 |
| 3,542,270 |
| 3,387,146 |
| 3,358,938 |
| 3,245,084 |
|
Allowance for loan losses | (43,297) |
| (39,924) |
| (39,034) |
| (38,859) |
| (38,982) |
|
Deposits | 5,721,593 |
| 5,737,850 |
| 5,419,519 |
| 5,309,464 |
| 5,150,411 |
|
Stockholders' equity | 580,505 |
| 568,112 |
| 556,997 |
| 545,973 |
| 534,961 |
|
Book value per common share | 37.70 |
| 36.98 |
| 36.33 |
| 35.69 |
| 35.07 |
|
Tangible book value per common share | 34.03 |
| 33.29 |
| 32.75 |
| 32.08 |
| 31.42 |
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Balance Sheet Ratios: |
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Average loans to deposits | 62.65 | % | 62.46 | % | 62.48 | % | 63.13 | % | 62.89 | % |
Average earning assets to total assets | 92.68 |
| 92.46 |
| 92.63 |
| 92.51 |
| 92.65 |
|
Average stockholders' equity to average assets | 9.04 |
| 9.10 |
| 9.21 |
| 9.29 |
| 9.28 |
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Asset Quality Data: |
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Past due loans | $ 1,789 |
| $ 910 |
| $ 1,179 |
| $ 1,266 |
| $ 850 |
|
Nonaccrual loans | 17,268 |
| 17,753 |
| 14,390 |
| 15,094 |
| 18,946 |
|
Restructured loans | 20,615 |
| 17,468 |
| 17,624 |
| 18,028 |
| 17,903 |
|
Total nonperforming and restructured loans | 39,672 |
| 36,131 |
| 33,193 |
| 34,388 |
| 37,699 |
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Other real estate owned and repossessed assets | 6,406 |
| 7,590 |
| 8,386 |
| 8,428 |
| 8,503 |
|
Total nonperforming and restructured assets | 46,078 |
| 43,721 |
| 41,579 |
| 42,816 |
| 46,202 |
|
Nonperforming and restructured loans to total loans | 1.08 | % | 1.02 | % | 0.98 | % | 1.02 | % | 1.16 | % |
Nonperforming and restructured assets to total assets | 0.72 |
| 0.69 |
| 0.69 |
| 0.72 |
| 0.80 |
|
Allowance to total loans | 1.18 |
| 1.13 |
| 1.15 |
| 1.16 |
| 1.20 |
|
Allowance to nonperforming and restructured loans | 109.14 |
| 110.50 |
| 117.60 |
| 113.00 |
| 103.40 |
|
Net charge-offs to average loans | (0.01) |
| 0.01 |
| 0.01 |
| 0.00 |
| 0.01 |
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BancFirst Corporation | ||||||||||||||
Consolidated Average Balance Sheets | ||||||||||||||
And Interest Margin Analysis | ||||||||||||||
Taxable Equivalent Basis | ||||||||||||||
(Dollars in thousands - Unaudited) | ||||||||||||||
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| Three Months Ended |
| Six Months Ended |
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| June 30, 2014 |
| June 30, 2014 |
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| Interest |
| Average |
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| Interest |
| Average |
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| Average |
| Income/ |
| Yield/ |
| Average |
| Income/ |
| Yield/ |
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| Balance |
| Expense |
| Rate |
| Balance |
| Expense |
| Rate |
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ASSETS |
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Earning assets: |
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Loans | $ 3,602,491 |
| $ 45,929 |
| 5.11 | % | $ 3,542,572 |
| $ 88,643 |
| 5.05 | % | ||
Securities – taxable | 530,482 |
| 1,502 |
| 1.14 |
| 507,817 |
| 2,807 |
| 1.11 |
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Securities – tax exempt | 40,870 |
| 421 |
| 4.13 |
| 41,037 |
| 851 |
| 4.18 |
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Interest bearing deposits with banks | 1,748,422 |
| 1,096 |
| 0.25 |
| 1,744,071 |
| 2,191 |
| 0.25 |
| ||
Total earning assets | 5,922,265 |
| 48,948 |
| 3.32 |
| 5,835,497 |
| 94,492 |
| 3.27 |
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Nonearning assets: |
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Cash and due from banks | 184,984 |
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| 192,538 |
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Interest receivable and other assets | 323,312 |
|
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| 315,690 |
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Allowance for loan losses | (40,567) |
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| (39,916) |
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Total nonearning assets | 467,729 |
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| 468,312 |
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Total assets | $ 6,389,994 |
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| $ 6,303,809 |
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LIABILITIES AND |
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STOCKHOLDERS' EQUITY |
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Interest bearing liabilities: |
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Transaction deposits | $ 810,729 |
| $ 208 |
| 0.10 | % | $ 785,675 |
| $ 06 |
| 0.10 | % | ||
Savings deposits | 1,975,496 |
| 1,113 |
| 0.23 |
| 1,966,302 |
| 2,216 |
| 0.23 |
| ||
Time deposits | 804,779 |
| 1,412 |
| 0.70 |
| 802,927 |
| 2,900 |
| 0.73 |
| ||
Short-term borrowings | 10,270 |
| 5 |
| 0.20 |
| 7,892 |
| 7 |
| 0.18 |
| ||
Long-term borrowings | 1,308 |
| 7 |
| 2.22 |
| 3,297 |
| 25 |
| 1.53 |
| ||
Junior subordinated debentures | 26,804 |
| 492 |
| 7.37 |
| 26,804 |
| 983 |
| 7.39 |
| ||
Total interest bearing liabilities | 3,629,386 |
| 3,237 |
| 0.36 |
| 3,592,897 |
| 6,537 |
| 0.37 |
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Interest free funds: |
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Noninterest bearing deposits | 2,159,268 |
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| 2,123,644 |
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Interest payable and other liabilities | 23,769 |
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| 15,635 |
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Stockholders' equity | 577,571 |
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| 571,633 |
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Total interest free funds | 2,760,608 |
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| 2,710,912 |
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Total liabilities and stockholders' equity | $ 6,389,994 |
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| $ 6,303,809 |
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Net interest income |
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| $ 45,711 |
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| $ 87,955 |
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Net interest spread |
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| 2.96 | % |
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| 2.90 | % | ||
Effect of interest free funds |
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| 0.14 | % |
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| 0.14 | % | ||
Net interest margin |
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| 3.10 | % |
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| 3.04 | % | ||
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CONTACT: Randy Foraker, Interim Chief Financial Officer (405) 270-1044 or David Rainbolt, Chief Executive Officer, BancFirst Corporation at (405) 270-1002.