Attached files
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| 8-K - FORM 8-K - BANCFIRST CORP /OK/ | v422249_8k.htm |
Exhibit 99.1
BancFirst Corporation Reports Third Quarter Earnings
OKLAHOMA CITY, Oct. 15, 2015 /PRNewswire/ -- BancFirst Corporation (NASDAQ GS:BANF) reported net income of $15.6 million, or $0.98 diluted earnings per share, for the third quarter of 2015 compared to net income of $18.8 million, or $1.19 diluted earnings per share, for the third quarter of 2014. Net income for the year to-date was $50.4 million, or $3.18 diluted earnings per share, compared to $48.1 million, or $3.05 diluted earnings per share, for the first nine months of 2014.
The Company's net interest income for the third quarter of 2015 was $46.9 million compared to $46.5 million for the third quarter of 2014. The net interest margin for the quarter was 3.12% compared to 3.13% a year ago. The provision for loan losses for the third quarter of 2015 was $1.4 million compared to negative $3.1 million a year ago. The negative provision in 2014 was due to a release of $5.31 million of loan loss reserves, partially offset by a $1.36 million increase in the specific loss reserves for existing adversely classified loans. Net charge-offs for the quarter were 0.08% of average loans, compared to net charge-offs of 0.02% for the third quarter of 2014. Net charge-offs increased in 2015 due to a $2.1 million charge off on a portion of a nonaccrual loan. Noninterest income for the quarter totaled $25.3 million, compared to $24.9 million last year. Noninterest expense for the quarter totaled $46.4 million compared to $46.9 million last year. The Company's effective tax rate increased to 36.0% compared to 32.0% for the third quarter of 2014, due primarily to tax credits that lowered the effective tax rate in 2014.
At September 30, 2015, the Company's total assets were $6.4 billion, down $168.9 million or 2.6% from December 31, 2014. Securities decreased $16.9 million to a total of $507.9 million. Loans totaled $4.0 billion, up $111.2 million or 2.9% from December 31, 2014. Deposits totaled $5.7 billion, down $206.1 million or 3.5% from December 31, 2014. The Company's total stockholders' equity was $646.1 million, an increase of $36.7 million, or 6.0%, over December 31, 2014.
Asset quality remained strong during the third quarter of 2015. Nonperforming and restructured assets were 0.87% of total assets at September 30, 2015 compared to 0.64% at December 31, 2014. During the second quarter the Company's nonaccrual loans increased due to the downgrade of a single commercial loan. The allowance to total loans was 1.03% compared to 1.06% at year-end 2014.
Subsequent to September 30, 2015, the Company recorded a gain on sale of securities of $2.1 million, related to warrants associated with a loan transaction, which will be included in fourth quarter earnings.
On October 8, 2015, the Company completed the acquisition of CSB Bancshares, Inc. and its subsidiary bank, Bank of Commerce, with locations in Yukon, Mustang, and El Reno, Oklahoma. Bank of Commerce has approximately $196 million in total assets, $148 million in loans, $170 million in deposits, and $22 million in equity capital. The bank will operate under its present name until it is merged into BancFirst, which is expected to be during the fourth quarter of 2015.
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 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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| 2015 |
| 2015 |
| 2015 |
| 2014 |
| 2014 |
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|
| 3rd Qtr |
| 2nd Qtr |
| 1st Qtr |
| 4th Qtr |
| 3rd Qtr |
|
Condensed Income Statements: |
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Net interest income | $ 46,876 |
| $ 46,215 |
| $ 45,626 |
| $ 47,319 |
| $ 46,514 |
|
Provision for loan losses | 1,424 |
| 1,271 |
| 1,334 |
| 1,840 |
| (3,115) |
|
Non-interest income: |
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|
|
|
|
|
|
|
|
|
Trust revenue | 2,295 |
| 2,200 |
| 2,342 |
| 2,334 |
| 2,380 |
|
Service charges on deposits | 14,910 |
| 14,312 |
| 13,352 |
| 14,345 |
| 14,226 |
|
Securities transactions | - |
| 5,392 |
| 1,729 |
| 822 |
| 284 |
|
Income from sales of loans | 545 |
| 549 |
| 440 |
| 426 |
| 569 |
|
Insurance commissions | 4,427 |
| 3,120 |
| 4,068 |
| 3,262 |
| 4,152 |
|
Cash management | 1,906 |
| 1,886 |
| 1,819 |
| 1,683 |
| 1,770 |
|
Other | 1,241 |
| 1,256 |
| 1,546 |
| 1,430 |
| 1,557 |
|
Total noninterest income | 25,324 |
| 28,715 |
| 25,296 |
| 24,302 |
| 24,938 |
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Non-interest expense: |
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Salaries and employee benefits | 28,746 |
| 27,886 |
| 27,513 |
| 27,071 |
| 28,153 |
|
Occupancy expense, net | 3,051 |
| 2,700 |
| 2,835 |
| 3,117 |
| 2,920 |
|
Depreciation | 2,488 |
| 2,449 |
| 2,464 |
| 2,439 |
| 2,432 |
|
Amortization of intangible assets | 444 |
| 445 |
| 444 |
| 444 |
| 444 |
|
Data processing services | 1,132 |
| 1,179 |
| 1,117 |
| 1,151 |
| 1,183 |
|
Net expense from other real estate owned | 51 |
| (184) |
| 314 |
| 194 |
| 173 |
|
Marketing and business promotion | 1,640 |
| 1,401 |
| 1,679 |
| 2,218 |
| 1,429 |
|
Deposit insurance | 820 |
| 836 |
| 826 |
| 835 |
| 810 |
|
Other | 7,980 |
| 8,717 |
| 7,731 |
| 9,417 |
| 9,398 |
|
Total noninterest expense | 46,352 |
| 45,429 |
| 44,923 |
| 46,886 |
| 46,942 |
|
Income before income taxes | 24,424 |
| 28,230 |
| 24,665 |
| 22,895 |
| 27,625 |
|
Income tax expense | 8,794 |
| 9,677 |
| 8,406 |
| 7,146 |
| 8,832 |
|
Net income | $ 15,630 |
| $ 18,553 |
| $ 16,259 |
| $ 15,749 |
| $ 18,793 |
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Per Common Share Data: |
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Net income-basic | $ 1.01 |
| $ 1.19 |
| $ 1.05 |
| $ 1.02 |
| $ 1.22 |
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Net income-diluted | 0.98 |
| 1.17 |
| 1.03 |
| 0.99 |
| 1.19 |
|
Cash dividends declared | 0.36 |
| 0.34 |
| 0.34 |
| 0.34 |
| 0.34 |
|
Common shares outstanding | 15,591,530 |
| 15,562,298 |
| 15,512,545 |
| 15,504,513 |
| 15,449,546 |
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Average common shares outstanding - |
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Basic | 15,581,593 |
| 15,536,325 |
| 15,507,346 |
| 15,484,664 |
| 15,425,920 |
|
Diluted | 15,906,124 |
| 15,864,924 |
| 15,838,548 |
| 15,846,810 |
| 15,795,843 |
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Performance Ratios: |
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Return on average assets | 0.97 | % | 1.14 | % | 1.01 | % | 0.96 | % | 1.17 | % |
Return on average equity | 9.64 |
| 11.79 |
| 10.65 |
| 10.31 |
| 12.63 |
|
Net interest margin | 3.12 |
| 3.07 |
| 3.07 |
| 3.14 |
| 3.13 |
|
Efficiency ratio | 64.20 |
| 60.63 |
| 63.34 |
| 65.46 |
| 65.70 |
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BancFirst Corporation | ||||||||||
Summary Financial Information | ||||||||||
(Dollars in thousands, except per share and share data - Unaudited) | ||||||||||
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| Nine months ended September 30, |
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| 2015 |
| 2014 |
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Condensed Income Statements: |
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Net interest income | $ 138,717 |
| $ 134,032 |
| ||||||
Provision for loan losses | 4,029 |
| 1,232 |
| ||||||
Non-interest income: |
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|
| ||||||
Trust revenue | 6,837 |
| 6,846 |
| ||||||
Service charges on deposits | 42,574 |
| 42,044 |
| ||||||
Securities transactions | 7,121 |
| 819 |
| ||||||
Income from sales of loans | 1,534 |
| 1,387 |
| ||||||
Insurance commissions | 11,615 |
| 11,380 |
| ||||||
Cash management | 5,611 |
| 5,058 |
| ||||||
Other | 4,043 |
| 4,577 |
| ||||||
Total noninterest income | 79,335 |
| 72,111 |
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Non-interest expense: |
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Salaries and employee benefits | 84,145 |
| 81,569 |
| ||||||
Occupancy expense, net | 8,586 |
| 8,493 |
| ||||||
Depreciation | 7,401 |
| 7,156 |
| ||||||
Amortization of intangible assets | 1,333 |
| 1,310 |
| ||||||
Data processing services | 3,428 |
| 3,538 |
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Net expense from other real estate owned | 181 |
| 317 |
| ||||||
Marketing and business promotion | 4,720 |
| 4,806 |
| ||||||
Deposit insurance | 2,482 |
| 2,456 |
| ||||||
Other | 24,428 |
| 26,990 |
| ||||||
Total noninterest expense | 136,704 |
| 136,635 |
| ||||||
Income before income taxes | 77,319 |
| 68,276 |
| ||||||
Income tax expense | 26,877 |
| 20,138 |
| ||||||
Net income | $ 50,442 |
| $ 48,138 |
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Per Common Share Data: |
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Net income-basic | $ 3.25 |
| $ 3.12 |
| ||||||
Net income-diluted | 3.18 |
| 3.05 |
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Cash dividends declared | 1.04 |
| 0.96 |
| ||||||
Common shares outstanding | 15,591,530 |
| 15,449,546 |
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Average common shares outstanding - |
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Basic | 15,542,027 |
| 15,412,611 |
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Diluted | 15,871,991 |
| 15,774,297 |
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Performance Ratios: |
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Return on average assets | 1.04 | % | 1.02 | % | ||||||
Return on average stockholders' equity | 10.68 |
| 11.14 |
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Net interest margin | 3.09 |
| 3.07 |
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Efficiency ratio | 62.69 |
| 66.28 |
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BancFirst Corporation | ||||||||||
Summary Financial Information | ||||||||||
(Dollars in thousands, except per share and share data - Unaudited) | ||||||||||
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|
| 2015 |
| 2015 |
| 2015 |
| 2014 |
| 2014 |
|
|
| 3rd Qtr |
| 2nd Qtr |
| 1st Qtr |
| 4th Qtr |
| 3rd Qtr |
|
Balance Sheet Data: |
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Total assets | $ 6,406,096 |
| $ 6,498,898 |
| $ 6,570,120 |
| $ 6,574,972 |
| $ 6,406,575 |
|
Interest-bearing deposits with banks | 1,491,873 |
| 1,638,038 |
| 1,699,265 |
| 1,710,350 |
| 1,652,939 |
|
Securities | 507,858 |
| 537,319 |
| 550,125 |
| 524,783 |
| 535,586 |
|
Total loans | 3,972,075 |
| 3,871,919 |
| 3,857,742 |
| 3,860,831 |
| 3,762,343 |
|
Allowance for loan losses | (40,970) |
| (42,621) |
| (41,557) |
| (40,889) |
| (39,467) |
|
Deposits | 5,698,591 |
| 5,808,221 |
| 5,883,801 |
| 5,904,704 |
| 5,740,449 |
|
Stockholders' equity | 646,061 |
| 634,244 |
| 621,679 |
| 609,314 |
| 596,183 |
|
Book value per common share | 41.44 |
| 40.76 |
| 40.08 |
| 39.30 |
| 38.59 |
|
Tangible book value per common share | 37.99 |
| 37.27 |
| 36.52 |
| 35.71 |
| 34.96 |
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Balance Sheet Ratios: |
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Average loans to deposits | 67.88 | % | 65.95 | % | 65.85 | % | 65.42 | % | 64.27 | % |
Average earning assets to total assets | 93.15 |
| 93.11 |
| 92.97 |
| 92.82 |
| 92.87 |
|
Average stockholders' equity to average assets | 10.02 |
| 9.67 |
| 9.51 |
| 9.35 |
| 9.25 |
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Asset Quality Data: |
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Past due loans | $ 2,061 |
| $ 1,311 |
| $ 1,498 |
| $ 1,135 |
| $ 2,004 |
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Nonaccrual loans | 30,321 |
| 32,177 |
| 16,562 |
| 16,410 |
| 17,052 |
|
Restructured loans | 15,386 |
| 15,702 |
| 16,131 |
| 16,515 |
| 17,125 |
|
Total nonperforming and restructured loans | 47,768 |
| 49,190 |
| 34,191 |
| 34,060 |
| 36,181 |
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Other real estate owned and repossessed assets | 7,862 |
| 7,521 |
| 6,418 |
| 8,079 |
| 7,016 |
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Total nonperforming and restructured assets | 55,631 |
| 56,711 |
| 40,609 |
| 42,139 |
| 43,197 |
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Nonperforming and restructured loans to total loans | 1.21 | % | 1.27 | % | 0.89 | % | 0.88 | % | 0.96 | % |
Nonperforming and restructured assets to total assets | 0.87 |
| 0.87 |
| 0.62 |
| 0.64 |
| 0.67 |
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Allowance to total loans | 1.03 |
| 1.10 |
| 1.08 |
| 1.06 |
| 1.05 |
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Allowance to nonperforming and restructured loans | 85.77 |
| 86.65 |
| 121.54 |
| 120.05 |
| 109.08 |
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Net charge-offs to average loans | 0.08 |
| 0.01 |
| 0.01 |
| 0.01 |
| 0.02 |
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BancFirst Corporation |
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Consolidated Average Balance Sheets |
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And Interest Margin Analysis |
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Taxable Equivalent Basis |
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(Dollars in thousands - Unaudited) |
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| Three Months Ended |
| Nine Months Ended |
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| September 30, 2015 |
| September 30, 2015 |
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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 | $ 3,885,579 |
| $ 47,455 |
| 4.85 | % | $ 3,860,299 |
| $ 140,107 |
| 4.85 | % | ||
Securities – taxable | 485,862 |
| 1,291 |
| 1.05 |
| 493,702 |
| 4,148 |
| 1.12 |
| ||
Securities – tax exempt | 43,118 |
| 382 |
| 3.51 |
| 39,912 |
| 1,123 |
| 3.76 |
| ||
Interest bearing deposits with banks | 1,570,367 |
| 1,009 |
| 0.25 |
| 1,644,708 |
| 3,137 |
| 0.25 |
| ||
Total earning assets | 5,984,926 |
| 50,137 |
| 3.32 |
| 6,038,621 |
| 148,515 |
| 3.29 |
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Nonearning assets: |
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Cash and due from banks | 168,607 |
|
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| 175,714 |
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Interest receivable and other assets | 313,686 |
|
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| 315,074 |
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Allowance for loan losses | (42,061) |
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| (41,633) |
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Total nonearning assets | 440,232 |
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| 449,155 |
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Total assets | $ 6,425,158 |
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| $ 6,487,776 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Interest bearing liabilities: |
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Transaction deposits | $ 701,405 |
| $ 181 |
| 0.10 | % | $ 720,175 |
| $ 532 |
| 0.10 | % | ||
Savings deposits | 2,019,956 |
| 1,155 |
| 0.23 |
| 2,047,022 |
| 3,463 |
| 0.23 |
| ||
Time deposits | 718,963 |
| 1,186 |
| 0.65 |
| 730,717 |
| 3,607 |
| 0.66 |
| ||
Short-term borrowings | 3,014 |
| 1 |
| 0.15 |
| 2,671 |
| 3 |
| 0.15 |
| ||
Junior subordinated debentures | 26,804 |
| 492 |
| 7.29 |
| 26,804 |
| 1,474 |
| 7.35 |
| ||
Total interest bearing liabilities | 3,470,142 |
| 3,015 |
| 0.34 |
| 3,527,389 |
| 9,079 |
| 0.34 |
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Interest free funds: |
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Noninterest bearing deposits | 2,284,207 |
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| 2,302,164 |
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Interest payable and other liabilities | 27,243 |
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| 26,839 |
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Stockholders' equity | 643,566 |
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| 631,384 |
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Total interest free funds | 2,955,016 |
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| 2,960,387 |
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Total liabilities and stockholders' equity | $ 6,425,158 |
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| $ 6,487,776 |
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Net interest income |
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| $ 47,122 |
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| $ 139,436 |
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Net interest spread |
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| 2.98 | % |
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| 2.95 | % | ||
Effect of interest free funds |
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| 0.14 | % |
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| 0.14 | % | ||
Net interest margin |
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| 3.12 | % |
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| 3.09 | % | ||
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CONTACT: Kevin Lawrence, Chief Financial Officer at (405) 270-1003 or David Rainbolt, Chief Executive Officer at (405) 270-1002.