BANCFIRST CORPORATION OKLAHOMA CITY, Jan. 21, 2016 /PRNewswire/ -- BancFirst Corporation (NASDAQ GS:BANF) reported net income of $15.7 million, or $0.99 diluted earnings per share, for the fourth quarter of 2015, approximately equal to the fourth quarter of 2014. Net income for the year ended December 31, 2015 was $66.2 million, or $4.17 diluted earnings per share, compared to $63.9 million, or $4.04 diluted earnings per share, for 2014.
The Company's net interest income for the fourth quarter of 2015 was $50.1 million compared to $47.3 million for the fourth quarter of 2014. The net interest margin for the quarter was 3.23% compared to 3.14% a year ago. Internal loan growth and acquired loans from our acquisitions contributed to the higher net interest income and margin in 2015. The provision for loan losses for the fourth quarter of 2015 was $3.6 million compared to $1.8 million a year ago. Net charge-offs for the quarter were 0.07% of average loans, compared to net charge-offs of 0.01% for the fourth quarter of 2014. Net charge-offs increased during the quarter partially due to an $857,000 charge off on a portion of a nonaccrual loan. Noninterest income for the quarter totaled $26.5 million, compared to $24.3 million last year. The increase was primarily due to a gain on sale of securities of $2.1 million, related to the redemption of warrants associated with a past loan transaction. Noninterest expense for the quarter totaled $49.0 million compared to $46.9 million last year; the increase during the quarter included acquisition costs of approximately $965,000.
For the year ended 2015, the Company's net interest income was $188.8 million compared to $181.4 million for 2014. The net interest margin for the year increased to 3.12% compared to 3.09% for the previous year. Internal loan growth and acquired loans from our acquisitions contributed to the higher net interest income and margin in 2015. In addition, the Company recognized discounts from payoffs of acquired loans of $2.3 million in 2015 and $2.2 million of in 2014. The provision for loan losses for 2015 was $7.7 million compared to $3.1 million a year ago. As previously disclosed, the 2014 provision for loan losses included a reversal of $5.3 million as a result of a change in the loan loss factors. The Company reported net charge-offs to average loans of 0.17% for 2015 compared to 0.03% for 2014. Net charge-offs increased in 2015 due to a $2.9 million charge off on a portion of a nonaccrual loan. Noninterest income for 2015 totaled $105.8 million compared to $96.4 million for 2014. The increase was primarily due to a gain on sale of securities of $9.3 million, of which $2.1 million was related to the redemption of warrants associated with a past loan transaction and $5.3 million was from the sale of an investment by the Company's wholly-owned subsidiary, Council Oak Partners, LLC. Noninterest expense was $185.7 million compared to $183.5 million for 2014; the increase was partially related to acquisition costs of approximately $965,000. The effective income tax rate for 2015 increased to 34.62% compared to 29.93% for 2014, primarily due to an investment in federal and state tax credits that were utilized in 2014.
At December 31, 2015, the Company's total assets were $6.7 billion, up $117.9 million or 1.8% from December 31, 2014. Securities increased $29.7 million to a total of $554.4 million. Loans totaled $4.2 billion, up $383.4 million or 9.9% from December 31, 2014. Deposits totaled $6.0 billion, up $68.7 million or 1.2% from December 31, 2014. The Company's total stockholders' equity was $655.5 million, an increase of $46.2 million, or 7.6%, over December 31, 2014.
Asset quality remained strong during the fourth quarter of 2015. Nonperforming and restructured assets were 0.83% of total assets at December 31, 2015 compared to 0.64% at December 31, 2014 and 0.87% at September 30, 2015. The allowance to total loans was 0.98% compared to 1.06% at year-end 2014.
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 was merged into BancFirst on November 23, 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 98 banking locations serving 54 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)
2015 2015 2015 2015 2014
4th Qtr 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr
------- ------- ------- ------- -------
Condensed Income Statements:
Net interest income $50,075 $46,876 $46,215 $45,626 $47,319
Provision for loan
losses 3,646 1,424 1,271 1,334 1,840
Non-interest income:
Trust revenue 2,254 2,295 2,200 2,342 2,334
Service charges on
deposits 15,077 14,910 14,312 13,352 14,345
Securities
transactions 2,148 - 5,392 1,729 822
Income from sales of
loans 434 545 549 440 426
Insurance commissions 3,176 4,427 3,120 4,068 3,262
Cash management 1,899 1,906 1,886 1,819 1,683
Other 1,485 1,241 1,256 1,546 1,430
----- ----- ----- ----- -----
Total noninterest
income 26,473 25,324 28,715 25,296 24,302
------ ------ ------ ------ ------
Non-interest expense:
Salaries and employee
benefits 28,938 28,746 27,886 27,513 27,071
Occupancy expense, net 2,926 3,051 2,700 2,835 3,117
Depreciation 2,565 2,488 2,449 2,464 2,439
Amortization of
intangible assets 602 444 445 444 444
Data processing
services 1,151 1,132 1,179 1,117 1,151
Net expense from other
real estate owned 143 51 (184) 314 194
Marketing and business
promotion 2,266 1,640 1,401 1,679 2,218
Deposit insurance 876 820 836 826 835
Other 9,544 7,980 8,717 7,731 9,417
----- ----- ----- ----- -----
Total noninterest
expense 49,011 46,352 45,429 44,923 46,886
------ ------ ------ ------ ------
Income before income
taxes 23,891 24,424 28,230 24,665 22,895
Income tax expense 8,163 8,794 9,677 8,406 7,146
----- ----- ----- ----- -----
Net income $15,728 $15,630 $18,553 $16,259 $15,749
======= ======= ======= ======= =======
Per Common Share Data:
Net income-basic $1.00 $1.01 $1.19 $1.05 $1.02
Net income-diluted 0.99 0.98 1.17 1.03 0.99
Cash dividends
declared 0.36 0.36 0.34 0.34 0.34
Common shares
outstanding 15,597,446 15,591,530 15,562,298 15,512,545 15,504,513
Average common shares outstanding -
Basic 15,609,599 15,581,593 15,536,325 15,507,346 15,484,664
Diluted 15,923,924 15,906,124 15,864,924 15,838,548 15,846,810
Performance Ratios:
Return on average
assets 0.94% 0.97% 1.14% 1.01% 0.96%
Return on average
equity 9.51 9.64 11.79 10.65 10.31
Net interest margin 3.23 3.12 3.07 3.07 3.14
Efficiency ratio 64.03 64.20 60.63 63.34 65.46
BancFirst Corporation
Summary Financial Information
(Dollars in thousands, except per share and share data - Unaudited, except where noted*)
Twelve months ended
December 31,
2015 2014*
---- ----
Condensed Income Statements:
Net interest income $188,792 $181,351
Provision for loan losses 7,675 3,072
Non-interest income:
Trust revenue 9,091 9,180
Service charges on deposits 57,651 56,389
Securities transactions 9,269 1,641
Income from sales of loans 1,968 1,813
Insurance commissions 14,791 14,642
Cash management 7,510 6,741
Other 5,528 6,007
----- -----
Total noninterest income 105,808 96,413
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Non-interest expense:
Salaries and employee benefits 113,083 108,640
Occupancy expense, net 11,512 11,610
Depreciation 9,966 9,595
Amortization of intangible
assets 1,935 1,754
Data processing services 4,579 4,689
Net expense from other real
estate owned 324 511
Marketing and business
promotion 6,986 7,024
Deposit insurance 3,358 3,291
Other 33,972 36,407
------ ------
Total noninterest expense 185,715 183,521
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Income before income taxes 101,210 91,171
Income tax expense 35,040 27,284
------ ------
Net income $66,170 $63,887
======= =======
Per Common Share Data:
Net income-basic $4.25 $4.14
Net income-diluted 4.17 4.04
Cash dividends declared 1.40 1.30
Common shares outstanding 15,597,446 15,504,513
Average common shares
outstanding -
Basic 15,559,059 15,430,773
Diluted 15,886,245 15,794,403
Performance Ratios:
Return on average assets 1.01% 1.00%
Return on average
stockholders' equity 10.38 10.92
Net interest margin 3.12 3.09
Efficiency ratio 63.04 66.07
BancFirst Corporation
Summary Financial Information
(Dollars in thousands, except per share and share data - Unaudited)
2015 2015 2015 2015 2014
4th Qtr 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr
------- ------- ------- ------- -------
Balance Sheet Data:
Total assets $6,692,829 $6,406,096 $6,498,898 $6,570,120 $6,574,972
Interest-bearing
deposits with banks 1,394,813 1,491,873 1,638,038 1,699,265 1,710,350
Securities 554,449 507,858 537,319 550,125 524,783
Total loans 4,244,273 3,972,075 3,871,919 3,857,742 3,860,831
Allowance for loan
losses (41,666) (40,970) (42,621) (41,557) (40,889)
Deposits 5,973,358 5,698,591 5,808,221 5,883,801 5,904,704
Stockholders' equity 655,510 646,061 634,244 621,679 609,314
Book value per common
share 42.03 41.44 40.76 40.08 39.30
Tangible book value
per common share 37.73 37.99 37.27 36.52 35.71
Balance Sheet Ratios:
Average loans to
deposits 69.62% 67.88% 65.95% 65.85% 65.42%
Average earning assets
to total assets 92.84 93.15 93.11 92.97 92.82
Average stockholders'
equity to average
assets 9.84 10.02 9.67 9.51 9.35
Asset Quality Data:
Past due loans $1,841 $2,061 $1,311 $1,498 $1,135
Nonaccrual loans 30,096 30,321 32,177 16,562 16,410
Restructured loans 15,143 15,386 15,702 16,131 16,515
Total nonperforming
and restructured
loans 47,080 47,768 49,190 34,191 34,060
Other real estate
owned and repossessed
assets 8,214 7,863 7,521 6,418 8,079
Total nonperforming
and restructured
assets 55,294 55,631 56,711 40,609 42,139
Nonperforming and
restructured loans to
total loans 1.11% 1.21% 1.27% 0.89% 0.88%
Nonperforming and
restructured assets
to total assets 0.83 0.87 0.87 0.62 0.64
Allowance to total
loans 0.98 1.03 1.10 1.08 1.06
Allowance to
nonperforming and
restructured loans 88.50 85.77 86.65 121.54 120.05
Net charge-offs to
average loans 0.07 0.08 0.01 0.01 0.01
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, 2015 December 31, 2015
----------------- -----------------
Interest Average Interest Average
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate
------- ------- ---- ------- ------- ----
ASSETS
Earning assets:
Loans $4,138,694 $50,677 4.86% $3,930,470 $190,784 4.85%
Securities - taxable 466,519 1,343 1.14 486,851 5,492 1.13
Securities - tax exempt 43,651 388 3.53 40,854 1,511 3.70
Interest bearing deposits with banks 1,539,780 1,142 0.29 1,618,260 4,279 0.26
--------- ----- --------- -----
Total earning assets 6,188,644 53,550 3.43 6,076,435 202,066 3.33
--------- ------ --------- -------
Nonearning assets:
Cash and due from banks 182,716 177,479
Interest receivable and other assets 335,595 320,247
Allowance for loan losses (41,192) (41,522)
------- -------
Total nonearning assets 477,119 456,204
------- -------
Total assets $6,665,763 $6,532,639
========== ==========
LIABILITIES AND
STOCKHOLDERS' EQUITY
Interest bearing liabilities:
Transaction deposits $777,120 $206 0.11% $734,529 $738 0.10%
Savings deposits 2,067,412 1,238 0.24 2,052,161 4,702 0.23
Time deposits 736,532 1,205 0.65 732,183 4,811 0.66
Short-term borrowings 3,049 1 0.16 2,766 4 0.15
Long-term borrowings 1,533 32 8.35 386 32 8.36
Junior subordinated debentures 31,567 492 6.19 28,005 1,966 7.02
------ --- ------ -----
Total interest bearing liabilities 3,617,213 3,174 0.35 3,550,030 12,253 0.35
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Interest free funds:
Noninterest bearing deposits 2,363,561 2,317,639
Interest payable and other
liabilities 28,776 27,328
Stockholders' equity 656,213 637,642
------- -------
Total interest free funds 3,048,550 2,982,609
--------- ---------
Total liabilities and stockholders'
equity $6,665,763 $6,532,639
========== ==========
Net interest income $50,376 $189,813
======= ========
Net interest spread 3.08% 2.98%
==== ====
Effect of interest free funds 0.15% 0.14%
==== ====
Net interest margin 3.23% 3.12%
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SOURCE BancFirst
