BancFirst Corporation Q3 net income jumps from $21.7 million to $32.9 million
Staff Writer |
BancFirst Corporation reported net income of $32.9 million, or $0.98 diluted earnings per share, for the third quarter of 2018 compared to net income of $21.7 million, or $0.67 diluted earnings per share, for the third quarter of 2017.
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Net income for the nine months ended September 30, 2018 was $93.1 million, or $2.78 diluted earnings per share, compared to $66.9 million, or $2.06 diluted earnings per share, for the nine months ended September 30, 2017.
On January 11, 2018 the company completed the acquisitions of two Oklahoma banking corporations.
Consequently, the first nine months of 2018 included one-time acquisition related expenses of approximately $2.6 million, which reduced diluted earnings per share by approximately 6 cents.
Net income for the nine months ended September 30, 2017 included the effects of favorable resolutions of two problem loans which resulted in principal recovery of $894,000 and unaccrued interest income of $2.3 million.
The company's net interest income for the third quarter of 2018 increased to $65.7 million compared to $57.2 million for the third quarter of 2017.
The net interest margin for the quarter was 3.68% compared to 3.46% a year ago.
The increase in margin was primarily due to the increase in the federal funds rate throughout 2017 and 2018 and the two acquisitions in the first quarter of 2018.
The provision for loan losses for the third quarter of 2018 was $747,000 compared to $3.3 million a year ago.
Net charge-offs for the third quarter of 2017 and 2018 were both 0.02% of average loans.
Noninterest income for the quarter totaled $32.8 million, compared to $29.2 million last year.
The increase in noninterest income was primarily due to the growth in debit card usage fees, insurance commissions and cash management revenue.
Noninterest expense for the quarter totaled $55.8 million compared to $50.6 million last year.
The increase in noninterest expense was primarily due to salary increases in 2018 and the two acquisitions.
The company's effective tax rate for the third quarter of 2018 was 21.6% compared to 19.8% for the first quarter of 2018 and 33.3% for the third quarter of 2017.
The effective tax rate for the first quarter of 2018 included the effects of stock option exercises during the quarter.
The decrease in the effective tax rate compared to the third quarter of 2017 was due to the change in tax rates from the Tax Cuts and Jobs Act and exercising of stock options during the third quarter of 2018.
At September 30, 2018, the company's total assets were $7.6 billion, an increase of $349.3 million from December 31, 2017.
The increase in total assets was primarily related to the acquisitions during the first quarter.
Securities of $477.1 million were up slightly from December 31, 2017.
Loans totaled $5.0 billion, a slight decrease from June 30, 2018.
Loan growth for the nine months ended September 30, 2018 was primarily from acquired loans.
Deposits totaled $6.6 billion, an increase of $228.1 million from the December 31, 2017 total, which was primarily related to the acquisitions.
The company's total stockholders' equity was $884.8 million, an increase of $109.2 million over December 31, 2017.
Asset quality remained strong during the third quarter of 2018.
Nonperforming and restructured assets were 0.68% of total assets at September 30, 2018 compared to 0.61% at December 31, 2017.
The allowance to total loans was 1.05% compared to 1.09% at year-end 2017.
The allowance to nonperforming and restructured loans was 116.5% compared to 130.6% at year-end 2017.
On January 11, 2018, the company completed the previously announced acquisitions of two Oklahoma banking corporations.
First Wagoner Corporation and its subsidiary bank, First Bank & Trust company, and First Chandler Corp.
and its subsidiary bank, First Bank of Chandler, had combined total assets of approximately $378 million.
The company exchanged a combination of cash and stock for these transactions.
On August 31, 2018 the company's wholly-owned subsidiary, BFTower, LLC, completed the purchase of Cotter Ranch Tower in Oklahoma City for $21.0 million.
The Tower consists of an aggregate of 507,000 square feet, has 36 floors and is the second tallest building in Oklahoma City.
The company plans to move its headquarters to this location as soon as renovations are complete. ■