BancFirst Corporation Reports Second Quarter Earnings

July 19, 2011 Mergers & Acquisitions 0

BancFirst Corporation Reports Second Quarter Earnings

PR Newswire

OKLAHOMA CITY, July 19, 2011

OKLAHOMA CITY, July 19, 2011 /PRNewswire/ — BancFirst Corporation (NASDAQ GS: BANF) reported net income of $10.1 million or $0.65 diluted earnings per share for the second quarter of 2011 and $21.5 million or $1.37 diluted earnings per share for the six months ended June 30, 2011. These results compared to net income of $11.0 million or $0.71 diluted earnings per share for the second quarter of 2010 and $20.3 million or $1.31 diluted earnings per share for the six months ended June 30, 2010. The results for the second quarter of 2011 included certain merger related expenses.

For the second quarter of 2011 the Company’s net interest income was $38.0 million, up $2.3 million or 6.6% from the same period in 2010. The increase was attributable to the increase in the Company’s average earning assets. Average earning assets grew $667 million from a year ago including $268 million from acquisitions in addition to internal growth. The Company’s net interest margin for the second quarter of 2011 was 3.17% versus 3.44% a year ago as interest rates remain at historically low levels. The Company’s loan loss provision for the second quarter was $2.0 million compared to $871,000 for the same period in 2010. Loans grew $65 million during the second quarter of 2011 which generated a portion of the loan loss provision in the quarter. Nonperforming loans fell to 0.75% of total assets compared to 1.12% a year ago. Net charge-offs were 0.15% compared to 0.09% for the same period a year ago. Noninterest income totaled $19.7 million which was up $2.7 million from a year ago. Included in this quarter’s noninterest income was a securities gain of $1.2 million on the sale of an investment made by our venture capital subsidiary, Council Oak Investment Corporation. Core noninterest income increased over a year ago from growth in trust services, commercial deposit revenues, insurance commissions and treasury management services. Noninterest expense for the second quarter was $39.6 million compared to $34.5 million a year ago. The primary drivers for the increase were from the acquisitions made in 2010 which approximate $2.2 million of noninterest expense. This quarter also included expenses related to a programmatic write-down on other real estate of $660,000 and one-time merger related expenses of $800,000.

At June 30, 2011, the Company’s total assets were $5.3 billion, up $639 million or 13.8% compared to June 30, 2010. Loans totaled $2.9 billion, up $68 million from June 30, 2010. Deposits were $4.7 billion, up $585 million or 14.2% compared to June 30, 2010. The Company’s equity capital was $470 million, up $25 million from June 30, 2010.

BancFirst Corporation completed its fifth acquisition in the last 18 months on July 12th by acquiring FBC Financial Corporation and its subsidiary bank, 1st Bank Oklahoma, Claremore, Oklahoma. 1st Bank Oklahoma has approximately $256 million in total assets. 1st Bank Oklahoma will operate under its own name until it is merged into BancFirst in the first quarter of 2012.

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 89 banking locations serving 50 communities across Oklahoma. More information can be found at 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)

2011

Year-

Q1

Q2

Q3

Q4

To-Date

Income Statement Data:

Net interest income

$ 37,290

$ 38,027

$ 75,317

Provision for loan losses

788

2,013

2,801

Securities transactions

8

1,316

1,324

Total noninterest income

17,729

19,658

37,387

Salaries and employee benefits

21,812

22,558

44,370

Total noninterest expense

36,397

39,610

76,007

Net income

11,355

10,115

21,470

Per Common Share Data:

Net income-basic

0.74

0.66

1.40

Net income-diluted

0.72

0.65

1.37

Cash dividends declared

0.25

0.25

0.50

Common shares outstanding

15,390,357

15,273,181

15,273,181

Average common shares outstanding –

Basic

15,375,644

15,364,738

15,362,764

Diluted

15,679,298

15,651,953

15,658,487

Performance Ratios:

Return on average assets

0.89

%

0.77

%

0.83

%

Return on average equity

9.90

8.59

9.24

Net interest margin

3.21

3.17

3.19

Efficiency ratio

66.15

68.67

67.44

2010

Year-

Q1

Q2

Q3

Q4

To-Date

Income Statement Data:

Net interest income

$ 33,862

$ 35,670

$ 36,072

$ 37,172

$ 142,776

Provision for loan losses

896

871

469

718

2,954

Securities transactions

136

(150)

333

5

324

Total noninterest income

15,960

17,010

18,162

18,787

69,919

Salaries and employee benefits

19,948

19,710

20,692

22,009

82,359

Total noninterest expense

34,901

34,505

35,389

39,300

144,095

Net income

9,303

11,042

11,787

10,177

42,309

Per Common Share Data:

Net income-basic

0.61

0.72

0.77

0.66

2.76

Net income-diluted

0.60

0.71

0.75

0.65

2.70

Cash dividends declared

0.23

0.23

0.25

0.25

0.96

Common shares outstanding

15,337,050

15,346,800

15,358,672

15,368,717

15,368,717

Average common shares outstanding –

Basic

15,319,111

15,344,374

15,356,366

15,362,388

15,348,102

Diluted

15,628,012

15,652,621

15,645,086

15,665,196

15,651,312

Performance Ratios:

Return on average assets

0.85

%

0.98

%

1.03

%

0.83

%

0.92

%

Return on average equity

8.66

10.01

10.34

8.79

9.45

Net interest margin

3.38

3.44

3.40

3.29

3.37

Efficiency ratio

70.05

65.50

65.25

70.23

67.75

BancFirst Corporation

Summary Financial Information

(Dollars in thousands, except per share data – Unaudited)

2011

Q1

Q2

Q3

Q4

Balance Sheet Data:

Total assets

$ 5,239,658

$ 5,267,445

Total loans

2,796,390

2,861,844

Allowance for loan losses

(36,136)

(37,092)

Securities

684,228

582,843

Deposits

4,666,199

4,701,999

Stockholders’ equity

466,827

470,397

Book value per common share

30.33

30.80

Tangible book value per common share

26.71

27.17

Balance Sheet Ratios:

Average loans to deposits

60.83

%

60.16

%

Average earning assets to total assets

92.49

92.49

Average stockholders’ equity to average assets

9.03

8.98

Asset Quality Data:

Past due loans

$ 3,016

$ 1,166

Nonaccrual loans

24,391

22,469

Restructured loans

316

344

Total nonperforming and restructured loans

27,723

23,979

Other real estate owned and repossessed assets

15,974

15,501

Total nonperforming and restructured assets

43,697

39,480

Nonperforming and restructured loans to total loans

0.99

%

0.84

%

Nonperforming and restructured assets to total assets

0.83

0.75

Allowance to total loans

1.29

1.30

Allowance to nonperforming and restructured loans

130.35

154.68

Net charge-offs to average loans

0.06

0.15

2010

Q1

Q2

Q3

Q4

Balance Sheet Data:

Total assets

$ 4,508,789

$ 4,628,022

$ 4,599,182

$ 5,060,249

Total loans

2,766,304

2,793,346

2,756,118

2,811,964

Allowance for loan losses

(36,780)

(37,002)

(35,681)

(35,745)

Securities

430,586

580,317

579,839

746,343

Deposits

4,009,017

4,117,360

4,082,568

4,503,754

Stockholders’ equity

436,901

445,592

453,869

458,594

Book value per common share

28.49

29.03

29.55

29.84

Tangible book value per common share

25.78

26.19

26.72

26.19

Balance Sheet Ratios:

Average loans to deposits

70.05

%

68.89

%

68.70

%

63.14

%

Average earning assets to total assets

92.62

92.76

92.83

92.75

Average stockholders’ equity to average assets

9.86

9.77

9.92

9.44

Asset Quality Data:

Past due loans

$ 589

$ 1,911

$ 563

$ 1,096

Nonaccrual loans

37,801

38,328

25,684

26,701

Restructured loans

1,912

1,677

378

294

Total nonperforming and restructured loans

40,302

41,916

26,625

28,091

Other real estate owned and repossessed assets

10,272

9,748

21,499

23,179

Total nonperforming and restructured assets

50,574

51,664

48,124

51,270

Nonperforming and restructured loans to total loans

1.46

%

1.50

%

0.97

%

1.00

%

Nonperforming and restructured assets to total assets

1.12

1.12

1.05

1.01

Allowance to total loans

1.33

1.32

1.29

1.27

Allowance to nonperforming and restructured loans

91.26

88.28

134.01

127.25

Net charge-offs to average loans

0.07

0.09

0.26

0.09

BancFirst Corporation

Consolidated Average Balance Sheets

And Interest Margin Analysis

Taxable Equivalent Basis

(Dollars in thousands – Unaudited)

Three Months Ended

Six Months Ended

June 30, 2011

June 30, 2011

Interest

Average

Interest

Average

Average

Income/

Yield/

Average

Income/

Yield/

Balance

Expense

Rate

Balance

Expense

Rate

ASSETS

Earning assets:

Loans

$ 2,821,461

$ 40,344

5.74

%

$ 2,807,497

$ 79,694

5.72

%

Securities – taxable

544,915

3,032

2.23

581,608

6,659

2.31

Securities – tax exempt

77,031

927

4.83

78,146

1,896

4.89

Interest bearing deposits with banks

1,423,104

906

0.26

1,348,460

1,702

0.25

Total earning assets

4,866,511

45,209

3.73

4,815,711

89,951

3.77

Nonearning assets:

Cash and due from banks

141,218

139,316

Interest receivable and other assets

290,152

287,766

Allowance for loan losses

(36,185)

(36,058)

Total nonearning assets

395,185

391,024

Total assets

$ 5,261,696

$ 5,206,735

LIABILITIES AND

STOCKHOLDERS’ EQUITY

Interest-bearing liabilities:

Transaction deposits

$ 723,429

$ 390

0.22

%

$ 717,783

$ 802

0.23

%

Savings deposits

1,608,045

2,719

0.68

1,605,861

5,568

0.70

Time deposits

905,940

2,877

1.27

910,928

5,861

1.30

Short-term borrowings

6,585

3

0.18

6,594

7

0.21

Long-term borrowings

34,522

255

2.96

34,773

501

2.91

Junior subordinated debentures

28,866

525

7.29

28,866

1,050

7.34

Total interest-bearing liabilities

3,307,387

6,769

0.82

3,304,805

13,789

0.84

Interest-free funds:

Noninterest bearing deposits

1,452,690

1,406,915

Interest payable and other liabilities

29,286

26,235

Stockholders’ equity

472,333

468,780

Total interest free-funds

1,954,309

1,901,930

Total liabilities

and stockholders’ equity

$ 5,261,696

$ 5,206,735

Net interest income

$ 38,440

$ 76,162

Net interest spread

2.91

%

2.93

%

Net interest margin

3.17

%

3.19

%

SOURCE BancFirst

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