BANCFIRST CORPORATION OKLAHOMA CITY, Jan. 19, 2017 /PRNewswire/ -- BancFirst Corporation (NASDAQ GS:BANF) reported net income of $18.6 million, or $1.16 diluted earnings per share, for the fourth quarter of 2016 compared to net income of $15.7 million, or $0.99 diluted earnings per share, for the fourth quarter of 2015. Net income for the year ended December 31, 2016 was $70.7 million, or $4.44 diluted earnings per share, compared to $66.2 million, or $4.17 diluted earnings per share, for 2015.
The Company's net interest income for the fourth quarter of 2016 increased to $51.6 million compared to $50.1 million for the fourth quarter of 2015. The net interest margin for the quarter was 3.19% compared to 3.23% a year ago. Internal loan growth and acquired loans from our October 2015 acquisition contributed to the higher net interest income in 2016. The provision for loan losses for the fourth quarter of 2016 decreased to $1.7 million compared to $3.6 million a year ago. The larger provision in the fourth quarter of 2015 was due to downgrades of commercial loans. Net charge-offs for the quarter were 0.02% of average loans, compared to 0.07% for the fourth quarter of 2015. Noninterest income for the quarter totaled $27.4 million, compared to $26.5 million last year. Noninterest expense for the quarter totaled $48.2 million compared to $49.0 million last year.
For the year ended 2016, the Company's net interest income was $203.8 million compared to $188.8 million for 2015. The net interest margin for the year increased to 3.25% compared to 3.12% for the previous year. Internal loan growth, acquired loans from our October 2015 acquisition and the increase in the Fed Fund rate of 25 basis points during the 4th quarter of 2015 contributed to the higher net interest income and margin in 2016. The provision for loan losses for 2016 was $11.5 million compared to $7.7 million a year ago. The increase in the provision was largely due to loan downgrades in the oil and gas service industry during the year. However, those loans have not yet resulted in write downs as the Company reported lower net charge-offs to average loans of 0.10% for 2016 compared to 0.17% for 2015. Noninterest income for 2016 totaled $107.0 million compared to $105.8 million for 2015. Noninterest expense was $191.4 million compared to $185.7 million for 2015. The Company's effective tax rate was 34.52% compared to 34.62% for 2015.
At December 31, 2016, the Company's total assets were $7.0 billion, an increase of 4.9% from December 31, 2015. Loans totaled $4.4 billion, up $163.8 million from December 31, 2015. Deposits totaled $6.2 billion up $274.7 million from December 31, 2015 totals. The Company's total stockholders' equity was $711.1 million, an increase of $55.6 million, or 8.5%, over December 31, 2015.
Asset quality remained solid during the fourth quarter of 2016. Nonperforming and restructured assets were 0.56% of total assets at December 31, 2016 compared to 0.83% at December 31, 2015. The decrease in nonperforming and restructured assets was largely due to one relationship that was removed from a troubled debt restructuring status due to sustained improvement in financial condition, performance, and the commercially reasonable nature of its structure. Sales of other real estate owned also contributed to the decrease in nonperforming assets. The allowance to total loans was 1.10% compared to 0.98% at year-end 2015. The allowance to nonperforming and restructured loans was 137.3% compared to 88.5% at year-end 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 100 banking locations serving 53 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)
2016 2016 2016 2016 2015
4th Qtr 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr
------- ------- ------- ------- -------
Condensed Income
Statements:
Net interest income $51,553 $51,431 $50,868 $49,976 $50,075
Provision for loan
losses 1,672 2,940 2,804 4,103 3,646
Non-interest income:
Trust revenue 2,878 2,685 2,602 2,465 2,254
Service charges on
deposits 16,005 16,033 15,485 14,710 15,077
Securities
transactions 52 (146) (65) 100 2,148
Income from sales of
loans 705 863 695 562 434
Insurance commissions 3,797 4,372 3,255 4,135 3,176
Cash management 2,713 2,853 2,732 2,318 1,899
Other 1,281 1,267 1,353 1,327 1,485
----- ----- ----- ----- -----
Total noninterest
income 27,431 27,927 26,057 25,617 26,473
------ ------ ------ ------ ------
Non-interest expense:
Salaries and employee
benefits 29,706 30,591 30,008 29,357 28,938
Occupancy expense,
net 3,198 3,217 3,071 2,827 2,926
Depreciation 2,461 2,556 2,567 2,530 2,565
Amortization of
intangible assets 548 560 580 581 602
Data processing
services 1,229 1,178 1,174 1,215 1,151
Net expense (income)
from other real
estate owned 197 162 35 (1,141) 143
Marketing and
business promotion 1,978 1,779 1,624 1,855 2,266
Deposit insurance 569 641 855 839 876
Other 8,303 8,520 7,806 8,228 9,544
----- ----- ----- ----- -----
Total noninterest
expense 48,189 49,204 47,720 46,291 49,011
------ ------ ------ ------ ------
Income before income
taxes 29,123 27,214 26,401 25,199 23,891
Income tax expense 10,503 9,232 8,908 8,620 8,163
------ ----- ----- ----- -----
Net income $18,620 $17,982 $17,493 $16,579 $15,728
======= ======= ======= ======= =======
Per Common Share
Data:
Net income-basic $1.19 $1.15 $1.12 $1.07 $1.00
Net income-diluted 1.16 1.13 1.10 1.05 0.99
Cash dividends
declared 0.38 0.38 0.36 0.36 0.36
Common shares
outstanding 15,810,935 15,695,083 15,560,271 15,527,804 15,597,446
Average common shares
outstanding -
Basic 15,743,770 15,631,094 15,549,811 15,534,416 15,609,599
Diluted 16,046,061 15,922,209 15,842,485 15,816,371 15,923,924
Performance Ratios:
Return on average
assets 1.07% 1.06% 1.04% 1.00% 0.94%
Return on average
equity 10.44 10.35 10.42 10.05 9.51
Net interest margin 3.19 3.27 3.28 3.25 3.23
Efficiency ratio 61.01 62.00 62.03 61.24 64.03
BancFirst Corporation
Summary Financial Information
(Dollars in thousands, except per share and share data - Unaudited, except where noted*)
Twelve months ended
December 31,
------------
2016 2015*
---- ----
Condensed Income Statements:
Net interest income $203,828 $188,792
Provision for loan losses 11,519 7,675
Non-interest income:
Trust revenue 10,630 9,091
Service charges on deposits 62,233 57,651
Securities transactions (59) 9,269
Income from sales of loans 2,825 1,968
Insurance commissions 15,559 14,791
Cash management 10,616 7,510
Other 5,228 5,528
----- -----
Total noninterest income 107,032 105,808
------- -------
Non-interest expense:
Salaries and employee benefits 119,662 113,083
Occupancy expense, net 12,313 11,512
Depreciation 10,114 9,966
Amortization of intangible
assets 2,269 1,935
Data processing services 4,796 4,579
Net (income) expense from
other real estate owned (747) 324
Marketing and business
promotion 7,236 6,986
Deposit insurance 2,904 3,358
Other 32,857 33,972
------ ------
Total noninterest expense 191,404 185,715
------- -------
Income before income taxes 107,937 101,210
Income tax expense 37,263 35,040
------ ------
Net income $70,674 $66,170
======= =======
Per Common Share Data:
Net income-basic $4.53 $4.25
Net income-diluted 4.44 4.17
Cash dividends declared 1.48 1.40
Common shares outstanding 15,810,935 15,597,446
Average common shares
outstanding -
Basic 15,615,170 15,559,059
Diluted 15,911,262 15,886,245
Performance Ratios:
Return on average assets 1.04% 1.01%
Return on average
stockholders' equity 10.32 10.38
Net interest margin 3.25 3.12
Efficiency ratio 61.57 63.04
BancFirst Corporation
Summary Financial Information
(Dollars in thousands, except per share and share data - Unaudited)
2016 2016 2016 2016 2015
4th Qtr 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr
------- ------- ------- ------- -------
Balance Sheet Data:
Total assets $7,018,952 $6,783,537 $6,683,376 $6,740,938 $6,692,829
Interest-bearing
deposits with banks 1,666,540 1,532,095 1,373,923 1,498,356 1,394,813
Securities 469,833 473,738 419,238 497,986 552,949
Total loans 4,409,550 4,317,512 4,337,063 4,282,738 4,245,773
Allowance for loan
losses (48,693) (48,061) (46,566) (44,571) (41,666)
Deposits 6,248,057 6,024,949 5,943,982 6,010,872 5,973,358
Stockholders' equity 711,094 693,731 676,830 662,661 655,510
Book value per common
share 44.97 44.20 43.50 42.68 42.03
Tangible book value
per common share 40.71 39.87 39.09 38.22 37.56
Balance Sheet Ratios:
Average loans to
deposits 70.98% 71.77% 71.74% 71.28% 69.62%
Average earning
assets to total
assets 93.30 93.16 93.05 92.88 92.84
Average stockholders'
equity to average
assets 10.26 10.22 10.02 9.92 9.84
Asset Quality Data:
Past due loans $1,962 $1,906 $2,695 $1,099 $1,841
Nonaccrual loans 31,798 31,014 30,063 31,040 30,096
Restructured loans 1,713 1,842 1,974 533 15,143
Total nonperforming
and restructured
loans 35,473 34,762 34,732 32,672 47,080
Other real estate
owned and
repossessed assets 3,866 4,339 4,469 4,245 8,214
Total nonperforming
and restructured
assets 39,339 39,101 39,201 36,917 55,294
Nonperforming and
restructured loans
to total loans 0.80% 0.81% 0.80% 0.76% 1.11%
Nonperforming and
restructured assets
to total assets 0.56 0.58 0.59 0.55 0.83
Allowance to total
loans 1.10 1.11 1.07 1.04 0.98
Allowance to
nonperforming and
restructured loans 137.27 138.26 134.07 136.42 88.50
Net charge-offs to
average loans 0.02 0.03 0.02 0.03 0.07
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, 2016 December 31, 2016
----------------- -----------------
Interest Average Interest Average
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate
------- ------- ---- ------- ------- ----
ASSETS
Earning assets:
4.72 4.76
$4,352,899 $51,749 % $4,298,245 $205,111 %
Loans
Securities - taxable 420,326 1,315 1.24 443,907 5,229 1.17
Securities - tax exempt 36,443 336 3.66 39,491 1,484 3.75
Interest bearing deposits with banks 1,627,652 2,286 0.56 1,510,843 7,908 0.52
--------- ----- --------- -----
Total earning assets 6,437,320 55,686 3.43 6,292,486 219,732 3.48
--------- ------ --------- -------
Nonearning assets:
Cash and due from banks 173,063 175,066
Interest receivable and other assets 337,396 336,491
Allowance for loan losses (48,111) (45,168)
------- -------
Total nonearning assets 462,348 466,389
------- -------
Total assets $6,899,668 $6,758,875
========== ==========
LIABILITIES AND
STOCKHOLDERS' EQUITY
Interest bearing liabilities:
Transaction deposits $783,883 $199 0.10% $785,090 $808 0.10%
Savings deposits 2,194,546 1,906 0.34 2,110,602 7,018 0.33
Time deposits 688,644 1,212 0.70 705,055 4,812 0.68
Short-term borrowings 2,222 2 0.42 1,799 7 0.38
Junior subordinated debentures 31,959 527 6.55 31,959 2,096 6.54
------ --- ------ -----
Total interest bearing liabilities 3,701,254 3,846 0.41 3,634,505 14,741 0.40
--------- ----- --------- ------
Interest free funds:
Noninterest bearing deposits 2,465,697 2,415,972
Interest payable and other
liabilities 25,150 25,212
Stockholders' equity 707,567 683,186
------- -------
Total interest free funds 3,198,414 3,124,370
--------- ---------
Total liabilities $6,899,668 $6,758,875
and stockholders' equity
Net interest income $51,840 $204,991
======= ========
Net interest spread 3.02% 3.08%
==== ====
Effect of interest free funds 0.17% 0.17%
==== ====
Net interest margin 3.19% 3.25%
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SOURCE BancFirst
