BANCFIRST CORP Stock Forecasts | BANF EPS & Price Predictions

EX-99.1 2 banf-ex991_6.htm EX-99.1 banf-ex991_6.htm

Exhibit 99.1

BANCFIRST CORPORATION REPORTS FOURTH QUARTER EARNINGS

OKLAHOMA CITY, Jan. 17, 2020 /PRNewswire/ -- BancFirst Corporation (NASDAQ GS:BANF) reported net income of $35.5 million, or $1.07 diluted earnings per share, for the fourth quarter of 2019 compared to net income of $32.7 million, or $0.98 diluted earnings per share, for the fourth quarter of 2018. Net income for the twelve months ended December 31, 2019 was $134.9 million, or $4.05 per share, compared to $125.8 million, or $3.76 per share, for the twelve months ended December 31, 2018. On August 15, 2019 the Company completed the acquisition of Pegasus Bank in Dallas, Texas. As a result, year to date results include one-time acquisition related expenses of approximately $3.1 million, which reduced diluted earnings per share by approximately 7 cents for the year. On January 11, 2018 the Company completed the acquisitions of two Oklahoma banking corporations. Consequently, 2018 included one-time acquisition related expenses of approximately $2.6 million, which reduced diluted earnings per share by approximately 6 cents.

The Company’s net interest income for the fourth quarter of 2019 increased to $73.9 million compared to $66.9 million for the fourth quarter of 2018. The net interest margin for the quarter was 3.78% compared to 3.77% a year ago. The provision for loan losses for the fourth quarter of 2019 was $1.4 million compared to $1.5 million a year ago. Net charge-offs for the full year of 2019 were 0.10% of average loans compared to 0.08% of average loans in 2018. Net charge-offs for the fourth quarter of 2019 were 0.06% of average loans compared to 0.04% of average loans in 2018. Noninterest income for the quarter totaled $35.5 million, compared to $31.9 million last year. The increase in noninterest income was primarily due to an increase in trust revenue, growth in debit card usage fees and sweep fees. Noninterest expense for the quarter totaled $66.3 million compared to $56.2 million last year. The increase in noninterest expense was primarily due to salary increases in 2019, the Pegasus Bank acquisition, and $2.3 million of amortization of new market tax credits. The Company’s effective tax rate was 15.0% compared to 20.3% for the fourth quarter of 2018. The decrease in the effective tax rate compared to the fourth quarter of 2018 was due to the aforementioned purchase of tax credits during the quarter.

At December 31, 2019, the Company’s total assets were $8.6 billion, an increase of $991.5 million from December 31, 2018. Securities of $491.6 million were down $280.5 million from December 31, 2018. Loans totaled $5.7 billion, an increase of $689.0 million from December 31, 2018. Deposits totaled $7.5 billion, an increase of $878.1 million from the December 31, 2018 total. The Company’s total stockholders’ equity was $1.0 billion, an increase of $102.2 million over December 31, 2018.

On August 15, 2019, BancFirst Corporation acquired Pegasus Bank (“Pegasus”), for an aggregate cash purchase price of $123.5 million. Pegasus is a Texas state-chartered bank with three banking locations in Dallas, Texas. Upon acquisition, Pegasus had approximately $651.1 million in total assets, $389.9 million in loans, and $603.9 million in deposits. The Bank will continue to operate as “Pegasus Bank” under a separate Texas state-charter and remain an independent subsidiary of BancFirst Corporation.

Asset quality remained strong during the fourth quarter of 2019. Nonperforming and restructured assets represented 0.63% of total assets at December 31, 2019, up from 0.59% at year-end 2018. The allowance to total loans was 0.96% down slightly from 1.03% at year-end 2018. The allowance to nonperforming and restructured loans was 113.40% compared to 136.29% at year-end 2018.

BancFirst Corporation CEO David Harlow commented, “The Company reported strong results for the fourth quarter and record earnings per share and net income for the year despite the headwind of lower interest rates during the second half of 2019. While net interest margin will continue to be under pressure in 2020, we were able to protect our margin in 2019 through loan growth, liability repricing, and the strength and size of our non-interest bearing deposit book. Non-interest income continued strong year-over-year growth while asset quality remained solid with 10bps of charge offs for the year. We are pleased with the integration of Pegasus Bank into BancFirst Corporation during the latter part of 2019 and are excited about the growth platform the Dallas market will provide the Company going forward. We will continue to build upon our core Oklahoma franchise as we have in the past through both organic growth and strategic acquisitions.”

BancFirst Corporation (the Company) is an Oklahoma based financial services holding company. The Company operates two subsidiary banks, BancFirst, is Oklahoma’s largest state-chartered bank with 108 banking locations serving 58 communities across Oklahoma, and Pegasus Bank, with 3 banking locations in Dallas, TX. 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.

BancFirst Corporation

Summary Financial Information

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

	2019			2019			2019			2019			2018
	4th Qtr			3rd Qtr			2nd Qtr			1st Qtr			4th Qtr
Condensed Income Statements:
Net interest income	$	73,939		$	72,287		$	68,792		$	66,903		$	66,888
Provision for loan losses		1,412			2,758			2,433			1,684			1,516
Non-interest income:
Trust revenue		3,682			3,490			3,250			3,177			3,023
Service charges on deposits		19,938			19,866			19,114			17,663			18,554
Securities transactions		(9	)		—			821			—			10
Income from sales of loans		913			964			868			698			649
Insurance commissions		5,076			5,535			4,420			5,265			4,593
Cash management		4,258			4,430			4,402			3,776			3,338
Other		1,666			1,342			1,202			1,422			1,684
Total noninterest income		35,524			35,627			34,077			32,001			31,851

Non-interest expense:
Salaries and employee benefits		40,375			40,354			36,124			36,171			35,530
Occupancy expense, net		3,738			3,386			2,953			2,627			3,307
Depreciation		3,355			3,268			3,015			2,985			2,965
Amortization of intangible assets		1,360			842			758			759			777
Data processing services		1,634			1,467			1,262			1,480			1,140
Net expense from other real estate owned		(424	)		26			97			(484	)		130
Marketing and business promotion		2,327			2,047			1,919			2,261			2,030
Deposit insurance		147			(81	)		544			533			571
Other		13,784			10,882			9,936			9,874			9,716
Total noninterest expense		66,296			62,191			56,608			56,206			56,166
Income before income taxes		41,755			42,965			43,828			41,014			41,057
Income tax expense		6,248			9,597			9,661			9,177			8,332
Net income	$	35,507		$	33,368		$	34,167		$	31,837		$	32,725
Per Common Share Data:
Net income-basic	$	1.09		$	1.02		$	1.04		$	0.98		$	1.00
Net income-diluted		1.07			1.00			1.02			0.96			0.98
Cash dividends declared		0.32			0.32			0.30			0.30			0.30
Common shares outstanding		32,694,268			32,644,018			32,639,588			32,617,788			32,603,926
Average common shares outstanding -
Basic		32,673,438			32,641,902			32,629,146			32,612,399			32,721,626
Diluted		33,366,848			33,327,213			33,317,193			33,292,852			33,423,458
Performance Ratios:
Return on average assets		1.66	%		1.65	%		1.78	%		1.69	%		1.70	%
Return on average stockholders’ equity		13.76			13.80			14.54			14.08			14.48
Net interest margin		3.78			3.89			3.89			3.85			3.77
Efficiency ratio		60.56			57.63			55.03			56.83			56.88

BancFirst Corporation

Summary Financial Information

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

	Twelve months ended
	December 31,
	2019			2018
Condensed Income Statements:
Net interest income	$	281,921		$	260,476
Provision for loan losses		8,287			3,802
Non-interest income:
Trust revenue		13,599			12,829
Service charges on deposits		76,581			70,847
Securities transactions		812			47
Income from sales of loans		3,443			2,902
Insurance commissions		20,296			18,926
Cash management		16,866			13,123
Other		5,632			6,525
Total noninterest income		137,229			125,199

Non-interest expense:
Salaries and employee benefits		153,024			139,547
Occupancy expense, net		12,704			13,491
Depreciation		12,623			10,537
Amortization of intangible assets		3,719			3,009
Data processing services		5,843			4,956
Net expense from other real estate owned		(785	)		239
Marketing and business promotion		8,554			8,028
Deposit insurance		1,143			2,427
Other		44,476			39,887
Total noninterest expense		241,301			222,121
Income before income taxes		169,562			159,752
Income tax expense		34,683			33,938
Net income	$	134,879		$	125,814
Per Common Share Data:
Net income-basic	$	4.13		$	3.85
Net income-diluted		4.05			3.76
Cash dividends declared		1.24			1.02
Common shares outstanding		32,694,268			32,603,926
Average common shares outstanding -
Basic		32,639,396			32,689,228
Diluted		33,329,844			33,430,714
Performance Ratios:
Return on average assets		1.69	%		1.66	%
Return on average stockholders’ equity		14.04			14.59
Net interest margin		3.85			3.70
Efficiency ratio		57.57			57.59

BancFirst Corporation

Summary Financial Information

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

	2019			2019			2019			2019			2018
	4th Qtr			3rd Qtr			2nd Qtr			1st Qtr			4th Qtr
Balance Sheet Data:

Total assets	$	8,565,758		$	8,388,816		$	7,642,021		$	7,709,000		$	7,574,258
Interest-bearing deposits with banks		1,646,238			1,476,340			1,518,998			1,291,447			1,195,824
Debt securities		491,626			555,575			425,154			724,872			772,132
Total loans		5,673,144			5,622,897			5,105,302			5,050,221			4,984,150
Allowance for loan losses		(54,238	)		(55,928	)		(55,108	)		(52,915	)		(51,389	)
Deposits		7,483,635			7,330,677			6,613,613			6,706,386			6,605,495
Stockholders' equity		1,004,990			979,752			956,380			927,927			902,789
Book value per common share		30.74			30.01			29.30			28.45			27.69
Tangible book value per common share (non-GAAP)(1)		25.50			24.77			26.40			25.52			24.74
Balance Sheet Ratios:
Average loans to deposits		75.83	%		77.68	%		76.07	%		75.34	%		74.24	%
Average earning assets to total assets		91.50			92.23			92.43			92.42			92.48
Average stockholders' equity to average assets		12.04			11.96			12.25			12.01			11.76
Asset Quality Data:
Past due loans	$	11,834		$	11,214		$	2,663		$	2,170		$	1,916
Nonaccrual loans		17,984			20,316			17,998			21,594			22,603
Restructured loans		18,010			17,504			16,486			14,552			13,188
Total nonperforming and restructured loans		47,828			49,034			37,147			38,316			37,707
Other real estate owned and repossessed assets		6,073			7,056			7,004			6,433			6,873
Total nonperforming and restructured assets		53,901			56,090			44,151			44,749			44,580
Nonperforming and restructured loans to total loans		0.84	%		0.87	%		0.73	%		0.76	%		0.76	%
Nonperforming and restructured assets to total assets		0.63			0.67			0.58			0.58			0.59
Allowance to total loans		0.96			0.99			1.08			1.05			1.03
Allowance to nonperforming and restructured loans		113.40			114.06			148.35			138.10			136.29
Net charge-offs to average loans		0.06			0.04			0.01			—			0.04

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

Stockholders' equity	$	1,004,990		$	979,752		$	956,380		$	927,927		$	902,789
Less goodwill		148,604			147,013			79,749			79,749			79,749
Less intangible assets, net		22,608			24,025			14,936			15,701			16,470
Tangible stockholders’ equity (non-GAAP)	$	833,778		$	808,714		$	861,695		$	832,477		$	806,570
Common shares outstanding		32,694,268			32,644,018			32,639,588			32,617,788			32,603,926
Tangible book value per common share (non-GAAP)	$	25.50		$	24.77		$	26.40		$	25.52		$	24.74



(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.

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, 2019								December 31, 2019
				Interest		Average						Interest		Average
	Average			Income/		Yield/			Average			Income/		Yield/
	Balance			Expense		Rate			Balance			Expense		Rate
ASSETS
Earning assets:
Loans	$	5,614,570		$	76,691		5.42	%	$	5,273,632		$	292,152		5.54	%
Securities – taxable		513,551			2,757		2.13			588,207			13,308		2.26
Securities – tax exempt		21,798			141		2.57			20,219			580		2.87
Federal funds sold and interest-bearing deposits with banks		1,628,088			6,782		1.65			1,455,799			31,372		2.15
Total earning assets		7,778,007			86,371		4.41			7,337,857			337,412		4.60
Nonearning assets:
Cash and due from banks		184,829								180,339
Interest receivable and other assets		592,100								500,487
Allowance for loan losses		(54,454	)							(53,975	)
Total nonearning assets		722,475								626,851
Total assets	$	8,500,482							$	7,964,708
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing liabilities:
Transaction deposits	$	774,824		$	606		0.31	%	$	754,140		$	2,573		0.34	%
Savings deposits		3,024,500			8,318		1.09			2,782,086			39,170		1.41
Time deposits		698,295			2,831		1.61			690,636			10,995		1.59
Short-term borrowings		891			3		1.51			1,458			32		2.19
Junior subordinated debentures		26,804			492		7.29			26,804			1,966		7.34
Total interest-bearing liabilities		4,525,314			12,250		1.07			4,255,124			54,736		1.29
Interest-free funds:
Noninterest-bearing deposits		2,906,310								2,709,510
Interest payable and other liabilities		45,426								42,219
Stockholders’ equity		1,023,432								960,855
Total interest free funds		3,975,168								3,712,584
Total liabilities and stockholders’ equity	$	8,500,482							$	7,967,708
Net interest income				$	74,121							$	282,676
Net interest spread							3.34	%							3.31	%
Effect of interest free funds							0.44	%							0.54	%
Net interest margin							3.78	%							3.85	%