OKLAHOMA
CITY, July 20, 2023 /PRNewswire/ -- BancFirst
Corporation (NASDAQ GS: BANF) reported net income of
$55.0 million, or $1.64 diluted earnings per share, for the second
quarter of 2023 compared to net income of $44.7 million, or $1.34 diluted earnings per share, for the second
quarter of 2022. Net income for the six months ended June 30, 2023 was $112.5
million, or $3.36 per share,
compared to $80.6 million, or
$2.42 per share, for the first half
of 2022.
The Company's net interest income for the second quarter of 2023
increased to $105.9 million compared
to $86.9 million for the quarter
ended June 30, 2022. Rising
short-term interest rates and modest loan growth drove the
increase. The net interest margin for the quarter was 3.87%
compared to 3.89% in the first quarter and 3.05% a year ago. For
the second quarter of 2023, the Company recorded a provision for
credit losses of $2.8 million driven
by loan growth, compared to $501,000
for the second quarter of 2022.
Noninterest income for the quarter totaled $48.0 million, compared to $42.6 million last year. The growth in
noninterest income was mostly attributable to an increase in sweep
fees due to increased sweep account balances. Noninterest income
for the second quarter of 2022 included $578,000 of income from an equity interest
received from a prior loan settlement. The equity interest was sold
during the second quarter of 2023.
Noninterest expense for the quarter increased to $81.1 million compared to $73.7 million last year. Higher noninterest
expense was primarily related to an increase in salaries and
employee benefits of $4.5 million. In
addition, noninterest expense was lower in the second quarter last
year due to a gain from the sale of the Company's prior
headquarters that was netted against expenses.
The Company's effective tax rate for the period was 21.4%
compared to 19.1% for the second quarter of 2022. During the first
quarter of 2023, the Company adopted ASU 2023-02 which increased
income tax expense. The lower effective tax rate in 2022 was also
driven by the exercising of stock options during the quarter.
At June 30, 2023, the Company's
total assets were $12.0 billion, a
decrease of $367.6 million from
December 31, 2022. Loans totaled
$7.3 billion, an increase of
$357.7 million from December 31, 2022. Liquidity remained solid with
the quarterly average loans to deposits ratio at June 30, 2023 rising to 69.9% from 62.3% at
year-end. Deposits totaled $10.5
billion, a decrease of $499.0
million from December 31, 2022
as deposits generally flowed from demand accounts into the
Company's off balance sheet sweep product. Sweep accounts totaled
$4.3 billion at June 30, 2023 up $567.7
million from December 31,
2022. The Company continues to fund itself with customer
deposits and does not use brokered or reciprocal deposits. The
Company's total stockholders' equity was $1.3 billion, an increase of $90.0 million over December 31, 2022.
Asset quality remained strong with nonaccrual loans of
$18.0 million, representing 0.25% of
total loans at June 30, 2023 compared
to 0.22% at year-end 2022. The allowance for credit losses to
total loans was 1.33% at both June 30,
2023 and December 31, 2022.
Net charge-offs were 0.01% of average loans for both the second
quarter and year-to-date of both 2023 and 2022.
BancFirst Corporation CEO David
Harlow commented, "Rapidly rising short-term interest rates
and the quantitative tightening by the Federal Reserve have caused
shrinkage in money supply and somewhat enhanced expectation of a
slowdown in the economy. However, the Company reported a good
quarter at $1.64 diluted earnings per
share and we continue to be well positioned with top-tier liquidity
supported by community-based deposits, strong capital, and solid
credit quality. Our allowance for credit losses remained
consistent with recent reporting as our forward outlook on the
regional economy did not change during the quarter."
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
106 banking locations serving 59 communities across Oklahoma, Pegasus Bank, with 3 banking
locations in the Dallas Metroplex area and Worthington Bank with 4 locations in the
Dallas-Fort Worth Metroplex area. 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
2023
|
|
2022
|
|
2022
|
|
2022
|
|
|
2nd
Qtr
|
|
1st
Qtr
|
|
4th
Qtr
|
|
3rd
Qtr
|
|
2nd
Qtr
|
Condensed Income
Statements:
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
105,926
|
|
$
109,156
|
|
$
110,352
|
|
$
100,947
|
|
$
86,867
|
Provision for credit
losses
|
|
2,824
|
|
2,322
|
|
3,776
|
|
2,863
|
|
501
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
|
|
Trust
revenue
|
|
4,590
|
|
4,222
|
|
4,065
|
|
4,125
|
|
3,949
|
Service charges on
deposits
|
|
22,268
|
|
21,231
|
|
21,603
|
|
22,161
|
|
21,618
|
Securities
transactions
|
|
110
|
|
(213)
|
|
1,116
|
|
966
|
|
-
|
Income from sales of
loans
|
|
757
|
|
604
|
|
657
|
|
969
|
|
1,256
|
Insurance
commissions
|
|
6,225
|
|
8,741
|
|
6,656
|
|
7,498
|
|
5,302
|
Cash
management
|
|
7,927
|
|
6,734
|
|
6,124
|
|
5,624
|
|
4,447
|
Other
|
|
6,097
|
|
6,509
|
|
7,947
|
|
7,988
|
|
6,026
|
Total noninterest
income
|
|
47,974
|
|
47,828
|
|
48,168
|
|
49,331
|
|
42,598
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
49,803
|
|
49,252
|
|
48,019
|
|
47,741
|
|
45,284
|
Occupancy expense,
net
|
|
5,118
|
|
4,983
|
|
5,259
|
|
4,930
|
|
4,734
|
Depreciation
|
|
4,769
|
|
4,643
|
|
4,566
|
|
4,612
|
|
4,647
|
Amortization of
intangible assets
|
|
880
|
|
880
|
|
880
|
|
880
|
|
857
|
Data processing
services
|
|
2,217
|
|
2,107
|
|
1,928
|
|
1,876
|
|
1,975
|
Net expense (income)
from other real estate owned
|
|
2,889
|
|
2,459
|
|
6,235
|
|
2,392
|
|
(510)
|
Marketing and business
promotion
|
|
1,900
|
|
2,527
|
|
2,465
|
|
1,945
|
|
1,591
|
Deposit
insurance
|
|
1,463
|
|
1,613
|
|
1,209
|
|
1,202
|
|
1,196
|
Other
|
|
12,071
|
|
11,853
|
|
14,044
|
|
13,500
|
|
13,943
|
Total
noninterest expense
|
|
81,110
|
|
80,317
|
|
84,605
|
|
79,078
|
|
73,717
|
Income before
income taxes
|
|
69,966
|
|
74,345
|
|
70,139
|
|
68,337
|
|
55,247
|
Income tax
expense
|
|
14,956
|
|
16,812
|
|
13,013
|
|
12,985
|
|
10,540
|
Net
income
|
|
$
55,010
|
|
$
57,533
|
|
$
57,126
|
|
$
55,352
|
|
$
44,707
|
Per Common Share
Data:
|
|
|
|
|
|
|
|
|
|
|
Net
income-basic
|
|
$
1.67
|
|
$
1.75
|
|
$
1.74
|
|
$
1.69
|
|
$
1.36
|
Net
income-diluted
|
|
1.64
|
|
1.72
|
|
1.70
|
|
1.65
|
|
1.34
|
Cash dividends
declared
|
|
0.40
|
|
0.40
|
|
0.40
|
|
0.40
|
|
0.36
|
Common shares
outstanding
|
|
32,939,256
|
|
32,899,493
|
|
32,875,560
|
|
32,856,387
|
|
32,781,198
|
Average common
shares outstanding -
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
32,920,497
|
|
32,892,857
|
|
32,868,087
|
|
32,825,931
|
|
32,749,752
|
Diluted
|
|
33,467,254
|
|
33,462,379
|
|
33,503,937
|
|
33,536,558
|
|
33,418,482
|
Performance
Ratios:
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
1.85 %
|
|
1.90 %
|
|
1.82 %
|
|
1.75 %
|
|
1.42 %
|
Return on average
stockholders' equity
|
|
16.59
|
|
18.31
|
|
18.62
|
|
18.13
|
|
15.14
|
Net interest
margin
|
|
3.87
|
|
3.89
|
|
3.83
|
|
3.48
|
|
3.05
|
Efficiency
ratio
|
|
52.70
|
|
51.16
|
|
53.37
|
|
52.62
|
|
56.94
|
BancFirst
Corporation
|
Summary Financial
Information
|
(Dollars in thousands,
except per share and share data - Unaudited)
|
|
|
|
|
|
|
|
Six months
ended
|
June 30,
|
|
|
2023
|
|
2022
|
Condensed Income
Statements:
|
|
|
|
|
Net interest
income
|
|
$
215,082
|
|
$
162,374
|
Provision for
credit losses
|
|
5,146
|
|
3,437
|
Noninterest
income:
|
|
|
|
|
Trust
revenue
|
|
8,812
|
|
7,455
|
Service charges on
deposits
|
|
43,499
|
|
42,993
|
Securities
transactions
|
|
(103)
|
|
(3,915)
|
Income from sales of
loans
|
|
1,361
|
|
2,922
|
Insurance
commissions
|
|
14,966
|
|
12,729
|
Cash
management
|
|
14,661
|
|
7,578
|
Other
|
|
12,606
|
|
16,486
|
Total noninterest
income
|
|
95,802
|
|
86,248
|
|
|
|
|
|
Noninterest
expense:
|
|
|
|
|
Salaries and employee
benefits
|
|
99,055
|
|
89,216
|
Occupancy expense,
net
|
|
10,101
|
|
9,137
|
Depreciation
|
|
9,412
|
|
9,422
|
Amortization of
intangible assets
|
|
1,760
|
|
1,688
|
Data processing
services
|
|
4,324
|
|
3,780
|
Net expense from other
real estate owned
|
|
5,348
|
|
1,284
|
Marketing and business
promotion
|
|
4,427
|
|
3,664
|
Deposit
insurance
|
|
3,076
|
|
2,324
|
Other
|
|
23,924
|
|
25,714
|
Total noninterest
expense
|
|
161,427
|
|
146,229
|
Income before
income taxes
|
|
144,311
|
|
98,956
|
Income tax
expense
|
|
31,768
|
|
18,334
|
Net
income
|
|
$
112,543
|
|
$
80,622
|
Per Common Share
Data:
|
|
|
|
|
Net
income-basic
|
|
$
3.42
|
|
$
2.46
|
Net
income-diluted
|
|
3.36
|
|
2.42
|
Cash dividends
declared
|
|
0.80
|
|
0.72
|
Common shares
outstanding
|
|
32,939,256
|
|
32,781,198
|
Average common
shares outstanding -
|
|
|
|
|
Basic
|
|
32,906,753
|
|
32,708,563
|
Diluted
|
|
33,465,931
|
|
33,366,799
|
Performance
Ratios:
|
|
|
|
|
Return on average
assets
|
|
1.87 %
|
|
1.32 %
|
Return on average
stockholders' equity
|
|
17.43
|
|
13.74
|
Net interest
margin
|
|
3.88
|
|
2.92
|
Efficiency
ratio
|
|
51.93
|
|
58.82
|
BancFirst
Corporation
|
Summary Financial
Information
|
(Dollars in thousands,
except per share and share data - Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
2023
|
|
2022
|
|
2022
|
|
2022
|
|
|
2nd Qtr
|
|
1st
Qtr
|
|
4th Qtr
|
|
3rd Qtr
|
|
2nd Qtr
|
Balance Sheet
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
12,020,265
|
|
$
12,332,105
|
|
$
12,387,863
|
|
$
12,452,378
|
|
$
12,530,073
|
Interest-bearing
deposits with banks
|
|
2,188,004
|
|
2,623,565
|
|
2,909,861
|
|
3,106,279
|
|
3,590,311
|
Debt
securities
|
|
1,570,620
|
|
1,618,233
|
|
1,540,604
|
|
1,521,645
|
|
1,205,894
|
Total
loans
|
|
7,307,475
|
|
7,124,831
|
|
6,949,795
|
|
6,832,595
|
|
6,620,643
|
Allowance for credit
losses
|
|
(96,920)
|
|
(94,760)
|
|
(92,728)
|
|
(89,871)
|
|
(86,935)
|
Deposits
|
|
10,475,180
|
|
10,610,103
|
|
10,974,228
|
|
11,058,940
|
|
11,142,688
|
Stockholders'
equity
|
|
1,340,791
|
|
1,310,882
|
|
1,250,836
|
|
1,195,149
|
|
1,185,695
|
Book value per common
share
|
|
40.70
|
|
39.85
|
|
38.05
|
|
36.37
|
|
36.17
|
Tangible book value per
common share (non-GAAP)(1)
|
|
34.62
|
|
33.73
|
|
31.90
|
|
30.20
|
|
29.90
|
Balance Sheet
Ratios:
|
|
|
|
|
|
|
|
|
|
|
Average loans to
deposits
|
|
69.85 %
|
|
64.54 %
|
|
62.25 %
|
|
59.62 %
|
|
58.66 %
|
Average earning assets
to total assets
|
|
92.23
|
|
92.52
|
|
92.14
|
|
91.58
|
|
90.89
|
Average stockholders'
equity to average assets
|
|
11.17
|
|
10.36
|
|
9.80
|
|
9.63
|
|
9.40
|
Asset Quality
Data:
|
|
|
|
|
|
|
|
|
|
|
Past due
loans
|
|
$
8,799
|
|
$
7,258
|
|
$
7,085
|
|
$
3,167
|
|
$
4,771
|
Nonaccrual loans
(3)
|
|
18,047
|
|
17,649
|
|
15,299
|
|
11,962
|
|
13,712
|
Other real estate owned
and repossessed assets
|
|
41,612
|
|
38,874
|
|
36,936
|
|
39,419
|
|
39,209
|
Nonaccrual loans to
total loans
|
|
0.25 %
|
|
0.25 %
|
|
0.22 %
|
|
0.18 %
|
|
0.21 %
|
Allowance to total
loans
|
|
1.33
|
|
1.33
|
|
1.33
|
|
1.32
|
|
1.31
|
Allowance to nonaccrual
loans
|
|
537.05
|
|
536.93
|
|
606.10
|
|
751.32
|
|
634.01
|
Net charge-offs to
average loans
|
|
0.01
|
|
0.00
|
|
0.01
|
|
0.00
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Tangible Book Value Per Common Share (non-GAAP)(2):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
$
1,340,791
|
|
$
1,310,882
|
|
$
1,250,836
|
|
$
1,195,149
|
|
$
1,185,695
|
Less
goodwill
|
|
182,055
|
|
182,055
|
|
182,055
|
|
182,055
|
|
183,639
|
Less intangible assets,
net
|
|
18,223
|
|
19,103
|
|
19,983
|
|
20,863
|
|
21,743
|
Tangible stockholders'
equity (non-GAAP)
|
|
$
1,140,513
|
|
$
1,109,724
|
|
$
1,048,798
|
|
$ 992,231
|
|
$ 980,313
|
Common shares
outstanding
|
|
32,939,256
|
|
32,899,493
|
|
32,875,560
|
|
32,856,387
|
|
32,781,198
|
Tangible book value per
common share (non-GAAP)
|
|
$
34.62
|
|
$
33.73
|
|
$
31.90
|
|
$
30.20
|
|
$
29.90
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
(3) Government Agencies
guarantee approximately $6.6 million of nonaccrual loans at June
30, 2023.
|
BancFirst
Corporation
|
Consolidated Average
Balance Sheets
|
|
And Interest Margin
Analysis
|
|
Taxable Equivalent
Basis
|
|
(Dollars in thousands -
Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
June 30,
2023
|
|
June 30,
2023
|
|
|
|
|
|
Interest
|
|
Average
|
|
|
|
Interest
|
|
Average
|
|
|
|
Average
|
|
Income/
|
|
Yield/
|
|
Average
|
|
Income/
|
|
Yield/
|
|
|
|
Balance
|
|
Expense
|
|
Rate
|
|
Balance
|
|
Expense
|
|
Rate
|
|
ASSETS
|
|
Earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
7,247,283
|
|
$
114,708
|
|
6.35
|
%
|
$
7,127,174
|
|
$
219,189
|
|
6.20
|
%
|
Debt securities
– taxable
|
|
1,604,422
|
|
9,408
|
|
2.35
|
|
1,588,439
|
|
18,399
|
|
2.34
|
|
Debt securities
– tax exempt
|
|
3,251
|
|
29
|
|
3.59
|
|
3,366
|
|
38
|
|
2.29
|
|
Interest bearing
deposits with banks and FFS
|
|
2,131,325
|
|
26,775
|
|
5.04
|
|
2,463,587
|
|
58,827
|
|
4.82
|
|
Total earning
assets
|
|
10,986,281
|
|
150,920
|
|
5.51
|
|
11,182,566
|
|
296,453
|
|
5.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonearning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due
from banks
|
|
200,165
|
|
|
|
|
|
209,115
|
|
|
|
|
|
Interest
receivable and other assets
|
|
820,731
|
|
|
|
|
|
808,094
|
|
|
|
|
|
Allowance for
credit losses
|
|
(95,887)
|
|
|
|
|
|
(94,609)
|
|
|
|
|
|
Total nonearning
assets
|
|
925,009
|
|
|
|
|
|
922,600
|
|
|
|
|
|
Total assets
|
|
$
11,911,290
|
|
|
|
|
|
$
12,105,166
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
Interest bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction
deposits
|
|
$
843,219
|
|
$
1,637
|
|
0.78
|
%
|
$
885,010
|
|
$
3,269
|
|
0.74
|
%
|
Savings
deposits
|
|
4,456,909
|
|
37,667
|
|
3.39
|
|
4,440,577
|
|
68,158
|
|
3.10
|
|
Time
deposits
|
|
747,101
|
|
4,428
|
|
2.38
|
|
726,558
|
|
7,482
|
|
2.08
|
|
Short-term
borrowings
|
|
10,211
|
|
129
|
|
5.04
|
|
8,537
|
|
212
|
|
5.00
|
|
Subordinated
debt
|
|
86,063
|
|
1,031
|
|
4.81
|
|
86,056
|
|
2,061
|
|
4.83
|
|
Total interest bearing
liabilities
|
|
6,143,503
|
|
44,892
|
|
2.93
|
|
6,146,738
|
|
81,182
|
|
2.66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest free
funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
bearing deposits
|
|
4,328,005
|
|
|
|
|
|
4,561,214
|
|
|
|
|
|
Interest payable
and other liabilities
|
|
109,732
|
|
|
|
|
|
94,817
|
|
|
|
|
|
Stockholders'
equity
|
|
1,330,050
|
|
|
|
|
|
1,302,397
|
|
|
|
|
|
Total interest free
funds
|
|
5,767,787
|
|
|
|
|
|
5,958,428
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
11,911,290
|
|
|
|
|
|
$
12,105,166
|
|
|
|
|
|
Net interest
income
|
|
|
|
$
106,028
|
|
|
|
|
|
$
215,271
|
|
|
|
Net interest
spread
|
|
|
|
|
|
2.58
|
%
|
|
|
|
|
2.69
|
%
|
Effect of interest free
funds
|
|
|
|
|
|
1.29
|
%
|
|
|
|
|
1.19
|
%
|
|
|
|
|
|
|
3.87
|
%
|
|
|
|
|
3.88
|
%
|
View original
content:https://www.prnewswire.com/news-releases/bancfirst-corporation-reports-second-quarter-earnings-301882537.html
SOURCE BancFirst