EX-99 2 banf-ex99_1.htm EX-99.1 EX-99

 

Exhibit 99.1

img44656334_0.jpg 

100 N. Broadway Ave

Oklahoma City, OK 73102

www.bancfirst.bank

FOR IMMEDIATE RELEASE

Tuesday, April 25, 2023

 

 

BANCFIRST CORPORATION REPORTS FIRST QUARTER EARNINGS

 

BancFirst Corporation (NASDAQ GS:BANF) reported net income of $57.5 million, or $1.72 diluted earnings per share, for the first quarter of 2023 compared to net income of $35.9 million, or $1.08 diluted earnings per share, for the first quarter of 2022. The Company’s net interest income for the first quarter of 2023 increased to $109.2 million compared to $75.5 million for the quarter ended March 31, 2022. Rising short-term interest rates and loan growth drove the increase. The net interest margin for the quarter was 3.89% compared to 2.78% a year ago. For the first quarter of 2023, the Company recorded a provision for credit losses of $2.3 million, compared to $2.9 million for the first quarter of 2022.

Noninterest income for the quarter totaled $47.8 million, compared to $43.7 million last year. The increase in noninterest income was mostly attributable to an increase in sweep fees due to rising interest rates and higher volume,along with a $1.3 million increase in insurance commissions. Noninterest income for the first quarter included $327,000 of income from an equity interest received from a prior loan settlement compared to $4.9 million of income from the same source in the first quarter of 2022. In addition, the first quarter of 2022 included a loss of $4.0 million on the sale of $226 million of low yielding securities, which were subsequently reinvested at higher yields.

Noninterest expense for the quarter increased to $80.3 million compared to $72.5 million last year. The increase in noninterest expense was primarily related to an increase in salaries and employee benefits of $5.3 million. The first quarter of 2022 included a gain on sale of OREO which reduced noninterest expense by $726,000.

The Company’s effective tax rate for the period was 22.6% compared to 17.8% for the first quarter of 2022. During the quarter, the Company adopted ASU 2023-02 which required a reclassification of $977,000 from other expense to income tax expense. The lower effective tax rate in 2022 was also driven by the exercising of stock options during the quarter and a lower state income tax rate.

At March 31, 2023, the Company’s total assets were $12.3 billion, a decrease of $55.8 million from December 31, 2022. Debt securities of $1.6 billion were up $77.6 million from December 31, 2022. Loans totaled $7.1 billion, an increase of $175.0 million from December 31, 2022. Deposits totaled $10.6 billion, a decrease of $364.1 million from December 31, 2022 as deposits moved into the Company’s off balance sheet sweep product. Sweep accounts were $4.1 billion at March 31, 2023 up $394.9 million from December 31, 2022. The Company’s total stockholders’ equity was $1.3 billion, an increase of $60.0 million over December 31, 2022.

Asset quality remained strong as nonaccrual loans totaled $17.6 million, representing only 0.25% of total loans at March 31, 2023 compared to 0.22% at year-end 2022. The allowance for credit losses to total loans was 1.33% at both March 31, 2023 and December 31, 2022. Net charge-offs were minimal for both the first quarter of 2023 and 2022.

BancFirst Corporation CEO David Harlow commented, “While we were pleased with our first quarter results, our industry is facing growing challenges including the possibility of a recession. However, we feel the Company is as well positioned to navigate these headwinds as any bank in the country. Top-tier liquidity supported by community based deposits, strong capital, and solid credit quality will allow us to continue to do what we have always done – focus on and support our customers and the communities that we serve.”

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

1

 

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.

For additional information call:

Kevin Lawrence, Chief Financial Officer at (405) 270-1003 or

David Harlow, Chief Executive Officer at (405) 270-1082.

 

2

 

 

 

BancFirst Corporation

 

Summary Financial Information

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

 

 

2022

 

 

2022

 

 

2022

 

 

2022

 

 

 

1st Qtr

 

 

4th Qtr

 

 

3rd Qtr

 

 

2nd Qtr

 

 

1st Qtr

 

 Condensed Income Statements:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Net interest income

 

$

109,156

 

 

$

110,352

 

 

$

100,947

 

 

$

86,867

 

 

$

75,507

 

Provision for credit losses

 

 

2,322

 

 

 

3,776

 

 

 

2,863

 

 

 

501

 

 

 

2,936

 

 Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trust revenue

 

 

4,222

 

 

 

4,065

 

 

 

4,125

 

 

 

3,949

 

 

 

3,506

 

Service charges on deposits

 

 

21,231

 

 

 

21,603

 

 

 

22,161

 

 

 

21,618

 

 

 

21,375

 

Securities transactions

 

 

(213

)

 

 

1,116

 

 

 

966

 

 

 

-

 

 

 

(3,915

)

Income from sales of loans

 

 

604

 

 

 

657

 

 

 

969

 

 

 

1,256

 

 

 

1,666

 

Insurance commissions

 

 

8,741

 

 

 

6,656

 

 

 

7,498

 

 

 

5,302

 

 

 

7,427

 

Cash management

 

 

6,734

 

 

 

6,124

 

 

 

5,624

 

 

 

4,447

 

 

 

3,131

 

Other

 

 

6,509

 

 

 

7,947

 

 

 

7,988

 

 

 

6,026

 

 

 

10,460

 

Total noninterest income

 

 

47,828

 

 

 

48,168

 

 

 

49,331

 

 

 

42,598

 

 

 

43,650

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

49,252

 

 

 

48,019

 

 

 

47,741

 

 

 

45,284

 

 

 

43,932

 

Occupancy expense, net

 

 

4,983

 

 

 

5,259

 

 

 

4,930

 

 

 

4,734

 

 

 

4,403

 

Depreciation

 

 

4,643

 

 

 

4,566

 

 

 

4,612

 

 

 

4,647

 

 

 

4,775

 

Amortization of intangible assets

 

 

880

 

 

 

880

 

 

 

880

 

 

 

857

 

 

 

831

 

Data processing services

 

 

2,107

 

 

 

1,928

 

 

 

1,876

 

 

 

1,975

 

 

 

1,805

 

Net expense (income) from other real estate owned

 

 

2,459

 

 

 

6,235

 

 

 

2,392

 

 

 

(510

)

 

 

1,794

 

Marketing and business promotion

 

 

2,527

 

 

 

2,465

 

 

 

1,945

 

 

 

1,591

 

 

 

2,073

 

Deposit insurance

 

 

1,613

 

 

 

1,209

 

 

 

1,202

 

 

 

1,196

 

 

 

1,128

 

Other

 

 

11,853

 

 

 

14,044

 

 

 

13,500

 

 

 

13,943

 

 

 

11,771

 

   Total noninterest expense

 

 

80,317

 

 

 

84,605

 

 

 

79,078

 

 

 

73,717

 

 

 

72,512

 

 Income before income taxes

 

 

74,345

 

 

 

70,139

 

 

 

68,337

 

 

 

55,247

 

 

 

43,709

 

 Income tax expense

 

 

16,812

 

 

 

13,013

 

 

 

12,985

 

 

 

10,540

 

 

 

7,794

 

 Net income

 

$

57,533

 

 

$

57,126

 

 

$

55,352

 

 

$

44,707

 

 

$

35,915

 

 Per Common Share Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Net income-basic

 

$

1.75

 

 

$

1.74

 

 

$

1.69

 

 

$

1.36

 

 

$

1.10

 

 Net income-diluted

 

 

1.72

 

 

 

1.70

 

 

 

1.65

 

 

 

1.34

 

 

 

1.08

 

 Cash dividends declared

 

 

0.40

 

 

 

0.40

 

 

 

0.40

 

 

 

0.36

 

 

 

0.36

 

 Common shares outstanding

 

 

32,899,493

 

 

 

32,875,560

 

 

 

32,856,387

 

 

 

32,781,198

 

 

 

32,725,587

 

 Average common shares outstanding -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Basic

 

 

32,892,857

 

 

 

32,868,087

 

 

 

32,825,931

 

 

 

32,749,752

 

 

 

32,666,916

 

   Diluted

 

 

33,462,379

 

 

 

33,503,937

 

 

 

33,536,558

 

 

 

33,418,482

 

 

 

33,315,333

 

 Performance Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Return on average assets

 

 

1.90

%

 

 

1.82

%

 

 

1.75

%

 

 

1.42

%

 

 

1.22

%

 Return on average stockholders’ equity

 

 

18.31

 

 

 

18.62

 

 

 

18.13

 

 

 

15.14

 

 

 

12.33

 

 Net interest margin

 

 

3.89

 

 

 

3.83

 

 

 

3.48

 

 

 

3.05

 

 

 

2.78

 

 Efficiency ratio

 

 

51.16

 

 

 

53.37

 

 

 

52.62

 

 

 

56.94

 

 

 

60.85

 

 

 

3

 

 

 

 

BancFirst Corporation

 

 

Summary Financial Information

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

 

 

2022

 

 

2022

 

 

2022

 

 

2022

 

 

 

 

1st Qtr

 

 

4th Qtr

 

 

3rd Qtr

 

 

2nd Qtr

 

 

1st Qtr

 

 

Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

12,332,105

 

 

$

12,387,863

 

 

$

12,452,378

 

 

$

12,530,073

 

 

$

12,624,431

 

 

Interest-bearing deposits with banks

 

 

2,623,565

 

 

 

2,909,861

 

 

 

3,106,279

 

 

 

3,590,311

 

 

 

3,816,532

 

 

Debt securities

 

 

1,618,233

 

 

 

1,540,604

 

 

 

1,521,645

 

 

 

1,205,894

 

 

 

1,211,668

 

 

Total loans

 

 

7,124,831

 

 

 

6,949,795

 

 

 

6,832,595

 

 

 

6,620,643

 

 

 

6,504,477

 

 

Allowance for credit losses

 

 

(94,760

)

 

 

(92,728

)

 

 

(89,871

)

 

 

(86,935

)

 

 

(87,239

)

 

Deposits

 

 

10,610,103

 

 

 

10,974,228

 

 

 

11,058,940

 

 

 

11,142,688

 

 

 

11,250,971

 

 

Stockholders' equity

 

 

1,310,882

 

 

 

1,250,836

 

 

 

1,195,149

 

 

 

1,185,695

 

 

 

1,167,802

 

 

Book value per common share

 

 

39.85

 

 

 

38.05

 

 

 

36.37

 

 

 

36.17

 

 

 

35.68

 

 

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

 

 

33.73

 

 

 

31.90

 

 

 

30.20

 

 

 

29.90

 

 

 

29.51

 

 

Balance Sheet Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average loans to deposits

 

 

64.54

%

 

 

62.25

%

 

 

59.62

%

 

 

58.66

%

 

 

59.72

%

 

Average earning assets to total assets

 

 

92.52

 

 

 

92.14

 

 

 

91.58

 

 

 

90.89

 

 

 

91.92

 

 

Average stockholders' equity to average assets

 

 

10.36

 

 

 

9.80

 

 

 

9.63

 

 

 

9.40

 

 

 

9.86

 

 

Asset Quality Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Past due loans

 

$

7,258

 

 

$

7,085

 

 

$

3,167

 

 

$

4,771

 

 

$

6,360

 

 

Nonaccrual loans (3)

 

 

17,649

 

 

 

15,299

 

 

 

11,962

 

 

 

13,712

 

 

 

17,453

 

 

Other real estate owned and repossessed assets

 

 

38,874

 

 

 

36,936

 

 

 

39,419

 

 

 

39,209

 

 

 

39,729

 

 

Nonaccrual loans to total loans

 

 

0.25

%

 

 

0.22

%

 

 

0.18

%

 

 

0.21

%

 

 

0.27

%

 

Allowance to total loans

 

 

1.33

 

 

 

1.33

 

 

 

1.32

 

 

 

1.31

 

 

 

1.34

 

 

Allowance to nonaccrual loans

 

 

536.93

 

 

 

606.10

 

 

 

751.32

 

 

 

634.01

 

 

 

499.83

 

 

Net charge-offs to average loans

 

 

0.00

 

 

 

0.01

 

 

 

0.00

 

 

 

0.01

 

 

 

0.00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' equity

 

$

1,310,882

 

 

$

1,250,836

 

 

$

1,195,149

 

 

$

1,185,695

 

 

$

1,167,802

 

 

Less goodwill

 

 

182,055

 

 

 

182,055

 

 

 

182,055

 

 

 

183,639

 

 

 

176,563

 

 

Less intangible assets, net

 

 

19,103

 

 

 

19,983

 

 

 

20,863

 

 

 

21,743

 

 

 

25,456

 

 

Tangible stockholders’ equity (non-GAAP)

 

$

1,109,724

 

 

$

1,048,798

 

 

$

992,231

 

 

$

980,313

 

 

$

965,783

 

 

Common shares outstanding

 

 

32,899,493

 

 

 

32,875,560

 

 

 

32,856,387

 

 

 

32,781,198

 

 

 

32,725,587

 

 

Tangible book value per common share (non-GAAP)

 

$

33.73

 

 

$

31.90

 

 

$

30.20

 

 

$

29.90

 

 

$

29.51

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 $6.4 million of nonaccrual loans at March 31, 2023.

 

 

 

4

 

 

 

BancFirst Corporation

 

 

Consolidated Average Balance Sheets

 

 

And Interest Margin Analysis

 

 

Taxable Equivalent Basis

 

 

(Dollars in thousands - Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

March 31, 2023

 

 

 

 

 

 

 

Interest

 

 

Average

 

 

 

 

Average

 

 

Income/

 

 

Yield/

 

 

 

 

Balance

 

 

Expense

 

 

Rate

 

 

ASSETS

Earning assets:

 

 

 

 

 

 

 

 

 

 

  Loans

 

$

7,005,731

 

 

$

104,481

 

 

 

6.05

 

%

  Debt securities – taxable

 

 

1,572,278

 

 

 

8,991

 

 

 

2.32

 

 

  Debt securities – tax exempt

 

 

3,481

 

 

9

 

 

1.07

 

 

  Interest bearing deposits with banks and FFS

 

 

2,799,540

 

 

 

32,052

 

 

 

4.64

 

 

     Total earning assets

 

 

11,381,030

 

 

 

145,533

 

 

 

5.19

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonearning assets:

 

 

 

 

 

 

 

 

 

 

  Cash and due from banks

 

 

218,164

 

 

 

 

 

 

 

 

  Interest receivable and other assets

 

 

795,316

 

 

 

 

 

 

 

 

  Allowance for credit losses

 

 

(93,316

)

 

 

 

 

 

 

 

     Total nonearning assets

 

 

920,164

 

 

 

 

 

 

 

 

     Total assets

 

$

12,301,194

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

Interest bearing liabilities:

 

 

 

 

 

 

 

 

 

 

  Transaction deposits

 

$

927,265

 

 

$

1,632

 

 

 

0.71

 

%

  Savings deposits

 

 

4,424,063

 

 

 

30,491

 

 

 

2.80

 

 

  Time deposits

 

 

705,787

 

 

 

3,054

 

 

 

1.76

 

 

  Short-term borrowings

 

 

6,844

 

 

 

83

 

 

 

4.94

 

 

  Subordinated debt

 

 

86,049

 

 

 

1,030

 

 

4.86

 

 

     Total interest bearing liabilities

 

 

6,150,008

 

 

 

36,290

 

 

 

2.39

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest free funds:

 

 

 

 

 

 

 

 

 

 

  Noninterest bearing deposits

 

 

4,797,014

 

 

 

 

 

 

 

 

  Interest payable and other liabilities

 

 

79,735

 

 

 

 

 

 

 

 

  Stockholders’ equity

 

 

1,274,437

 

 

 

 

 

 

 

 

     Total interest free funds

 

 

6,151,186

 

 

 

 

 

 

 

 

     Total liabilities and stockholders’ equity

 

$

12,301,194

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

$

109,243

 

 

 

 

 

Net interest spread

 

 

 

 

 

 

 

 

2.80

 

%

Effect of interest free funds

 

 

 

 

 

 

 

 

1.09

 

%

 

 

 

 

 

 

 

 

 

3.89

 

%

 

 

 

 

 

 

 

 

 

 

 

 

5