BancFirst Corporation Reports Fourth Quarter Earnings

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Jan 19, 2010, 05:58 ET

OKLAHOMA CITY, Jan. 19 /PRNewswire-FirstCall/ -- BancFirst Corporation (Nasdaq: BANF) reported net income of $9.8 million or $0.63 per diluted earnings per share for the fourth quarter and $32.6 million or $2.09 per diluted earnings per share for the year ended December 31, 2009. The results compare to $8.1 million or $0.52 per diluted earnings per share and $44.4 million or $2.85 per diluted earnings per share for the fourth quarter and year ended December 31, 2008, respectively.

For the fourth quarter of 2009, the Company's net interest income was $34.1 million, up slightly from $33.7 million in the fourth quarter a year ago. The Company's net interest margin decreased to 3.35% for the fourth quarter of 2009 compared to 3.85% in the same quarter a year ago. However, average earning assets increased to $4.1 billion up from $3.5 billion in the same period in 2008. The Company's loan loss provision was $1.2 million the fourth quarter compared to $3.1 million in the same period in 2008. Noninterest income totaled $16.2 million for the quarter virtually the same compared to the fourth quarter a year ago. Noninterest expense for the quarter was $33.9 million, down from $34.2 million in the fourth quarter of 2008.

At December 31, 2009, nonperforming loans equaled 1.13% of total assets up from 0.72% a year ago. Net charge-offs were 0.12% of loans for the fourth quarter and 0.30% for the year 2009, below industry peer levels. At year-end 2009, total assets of the Company reached $4.4 billion, an increase of $549 million over the prior year end. Loans totaled $2.7 billion, virtually unchanged from December 31, 2008, while deposits increased to $3.9 billion, up $551 million or 16.3% over the prior year. The Company's equity capital was $430.8 million or 9.8% of total assets.

On December 8, 2009, the Company completed the acquisition of First Jones Bancorporation and its subsidiary bank, First State Bank, Jones, Oklahoma. First State Bank has total assets of approximately $41 million. The bank will be merged into BancFirst in March 2010.

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 88 banking locations serving 44 communities across Oklahoma.

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)
	2009
									Year-
	Q1		Q2		Q3		Q4		To-Date
Income Statement Data:
Net interest income	$31,753		$32,546		$32,952		$34,070		$131,321
Provision for loan losses	3,365		4,851		998		1,175		10,389
Securities transactions	339		(37)		20		14		336
Total noninterest income	16,622		17,043		17,039		16,160		66,864
Salaries and employee benefits	20,117		19,896		19,938		19,068		79,019
Total noninterest expense	34,529		35,218		35,481		33,889		139,117
Net income	7,125		6,260		9,390		9,834		32,609
Per Common Share Data:
Net income-basic	0.47		0.41		0.61		0.64		2.13
Net income-diluted	0.46		0.40		0.60		0.63		2.09
Cash dividends declared	0.22		0.22		0.23		0.23		0.90
Common shares outstanding	15,291,641		15,301,641		15,302,891		15,308,741		15,308,741
Average common shares outstanding -
Basic	15,291,636		15,298,075		15,302,199		15,307,019		15,299,781
Diluted	15,579,090		15,604,279		15,585,955		15,600,964		15,593,789
Performance Ratios:
Return on average assets	0.75	%	0.61	%	0.86	%	0.89	%	0.78	%
Return on average equity	6.92		5.95		8.77		9.06		7.70
Net interest margin	3.69		3.44		3.27		3.35		3.42
Efficiency ratio	71.38		71.02		70.97		67.47		70.20

	2008
									Year-
	Q1		Q2		Q3		Q4		To-Date
Income Statement Data:
Net interest income	$35,387		$34,774		$35,251		$33,695		$139,107
Provision for loan losses	1,780		3,539		2,270		3,087		10,676
Securities transactions	28		6,121		776		13		6,938
Total noninterest income	17,241		23,330		17,784		16,030		74,385
Salaries and employee benefits	20,189		20,366		20,038		19,293		79,886
Total noninterest expense	32,928		33,596		34,307		34,175		135,006
Net income	11,594		13,737		10,958		8,069		44,358
Per Common Share Data:
Net income-basic	0.76		0.91		0.72		0.53		2.91
Net income-diluted	0.74		0.89		0.70		0.52		2.85
Cash dividends declared	0.20		0.20		0.22		0.22		0.84
Common shares outstanding	15,183,483		15,186,632		15,242,061		15,281,141		15,281,141
Average common shares outstanding -
Basic	15,208,049		15,185,763		15,217,546		15,263,507		15,218,835
Diluted	15,562,570		15,548,687		15,589,215		15,606,950		15,578,463
Performance Ratios:
Return on average assets	1.26	%	1.46	%	1.13	%	0.84	%	1.17	%
Return on average equity	12.24		14.14		11.04		7.94		11.30
Net interest margin	4.24		4.08		4.03		3.85		4.05
Efficiency ratio	62.57		57.82		64.69		68.73		63.24

*BancFirst* Corporation Summary Financial Information (Dollars in thousands, except per share data - Unaudited)
	2009
	Q1		Q2		Q3		Q4
Balance Sheet Data:
Total assets	$3,958,155		$4,269,325		$4,322,103		$4,416,209
Total loans	2,808,499		2,738,238		2,713,169		2,738,654
Allowance for loan losses	(36,765)		(39,334)		(36,016)		(36,383)
Securities	439,220		417,738		391,627		417,286
Deposits	3,471,518		3,782,822		3,831,823		3,929,016
Stockholders' equity	416,381		419,202		425,638		430,824
Book value per common share	27.23		27.40		27.81		28.14
Tangible book value per common share	24.51		24.69		25.12		25.41
Balance Sheet Ratios:
Average loans to deposits	83.29	%	79.67	%	70.39	%	69.54	%
Average earning assets to total assets	91.51		92.08		92.97		93.01
Average stockholders' equity to average assets	10.85		10.52		9.79		9.84
Asset Quality Data:
Past due loans	$867		$ 21,530		$ 9,941		$ 853
Nonaccrual loans	25,255		24,186		37,319		37,133
Restructured loans	353		1,115		561		1,970
Total nonperforming and restructured loans	26,475		46,831		47,821		39,956
Other real estate owned and repossessed assets	5,576		11,543		10,587		9,881
Total nonperforming and restructured assets	32,051		58,374		58,408		49,837
Nonperforming and restructured loans to total loans	0.94	%	1.68	%	1.76	%	1.46	%
Nonperforming and restructured assets to total assets	0.81		1.35		1.35		1.13
Allowance to total loans	1.31		1.44		1.33		1.33
Allowance to nonperforming and restructured loans	138.87		83.99		75.31		91.06
Net charge-offs to average loans	0.13		0.33		0.63		0.12

	2008
	Q1		Q2		Q3		Q4
Balance Sheet Data:
Total assets	$3,786,111		$3,842,364		$3,825,518		$3,867,204
Total loans	2,500,849		2,608,913		2,730,409		2,757,854
Allowance for loan losses	(30,193)		(33,512)		(33,862)		(34,290)
Securities	462,832		448,350		462,595		455,568
Deposits	3,302,103		3,369,912		3,361,233		3,377,608
Stockholders' equity	386,177		387,181		397,648		413,791
Book value per common share	25.43		25.49		26.09		27.08
Tangible book value per common share	22.65		22.73		23.35		24.34
Balance Sheet Ratios:
Average loans to deposits	76.91	%	77.19	%	78.85	%	82.23	%
Average earning assets to total assets	91.27		90.91		91.10		91.63
Average stockholders' equity to average assets	10.27		10.30		10.25		10.55
Asset Quality Data:
Past due loans	$643		$ 2,043		$892		$ 1,346
Nonaccrual loans	11,892		11,070		20,229		21,359
Restructured loans	864		833		940		1,022
Total nonperforming and restructured loans	13,399		13,946		22,061		23,727
Other real estate owned and repossessed assets	2,074		2,311		3,423		3,997
Total nonperforming and restructured assets	15,473		16,257		25,484		27,724
Nonperforming and restructured loans to total loans	0.54	%	0.53	%	0.81	%	0.86	%
Nonperforming and restructured assets to total assets	0.41		0.42		0.67		0.72
Allowance to total loans	1.21		1.28		1.24		1.24
Allowance to nonperforming and restructured loans	225.34		240.30		153.50		144.52
Net charge-offs to average loans	0.12		0.03		0.28		0.38

*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, 2009				December 31, 2009
		Interest	Average				Interest	Average
	Average	Income/	Yield/			Average	Income/	Yield/
	Balance	Expense	Rate			Balance	Expense	Rate
ASSETS
Earning assets:
Loans	$2,701,707	$ 38,381	5.64	%		$ 2,749,544	$ 153,059	5.57	%
Securities – taxable	355,631	3,079	3.43			379,702	13,436	3.54
Securities - tax exempt	35,861	507	5.61			38,081	2,151	5.65
Interest bearing deposits with banks	967,586	643	0.26			695,167	2,241	0.32
Total earning assets	4,060,785	42,610	4.16			3,862,494	170,887	4.42

Nonearning assets:
Cash and due from banks	108,219					113,207
Interest receivable and other assets	232,811					233,885
Allowance for loan losses	(36,081)					(36,607)
Total nonearning assets	304,949					310,485
Total assets	$ 4,365,734					$ 4,172,979

LIABILITIES AND
STOCKHOLDERS' EQUITY
Interest-bearing liabilities:
Transaction deposits	$528,816	$ 325	0.24	%		$518,914	$ 1,218	0.23	%
Savings deposits	1,351,087	3,359	0.99			1,228,697	15,513	1.26
Time deposits	877,225	4,101	1.85			885,403	19,777	2.23
Short-term borrowings	1,103	-	-			2,883	11	0.38
Junior subordinated debentures	26,804	493	7.30			26,804	1,966	7.33
Total interest-bearing liabilities	2,785,035	8,278	1.18			2,662,701	38,485	1.45

Interest-free funds:
Noninterest bearing deposits	1,122,045					1,054,291
Interest payable and other liabilities	28,155					32,239
Stockholders' equity	430,499					423,748
Total interest free-funds	1,580,699					1,510,278
Total liabilities and stockholders' equity	$ 4,365,734					$ 4,172,979
Net interest income		$ 34,332					$ 132,402
Net interest spread			2.98	%				2.97	%
Net interest margin			3.35	%				3.42	%