BancFirst Corporation Reports Second Quarter Earnings

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Jul 17, 2012, 05:00 ET

OKLAHOMA CITY, July 17, 2012 /PRNewswire/ -- BancFirst Corporation (NASDAQ GS:BANF) reported net income of $11.7 million or $0.76 diluted earnings per share for the second quarter of 2012 and $25.7 million or $1.67 diluted earnings per share for the six months ended June 30, 2012. These results compared to 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.

The Company's net interest income for the second quarter of 2012 was $40.9 million, up $2.9 million or 7.5% from the second quarter in 2011. The increase was attributable to growth in the Company's average loans which totaled $3.1 billion, up $251.6 million from the prior year. The Company's average earning assets rose to $5.3 billion as a result of internal growth combined with the acquisition made in July 2011. The Company's net interest margin for the second quarter of 2012 was 3.14% versus 3.17% a year ago as interest rates remain at historically low levels. The Company's loan loss provision for the second quarter was $248,000 down from $2.0 million for the same period in 2011. Nonperforming and restructured assets were 0.89% of total assets compared to 0.92% at March 31, 2012 and 0.71% at December 31, 2011. Net charge-offs were 0.03% compared to 0.15% for the same period a year ago. Noninterest income totaled $20.4 million which was up $685,000 from a year ago. Excluding security gains, core noninterest income increased $1.8 million or 9.7% from the prior year. The increases in revenues resulted primarily from growth in trust services, commercial deposit revenues, insurance commissions and treasury management services. Noninterest expense for the second quarter was $42.6 million compared to $39.6 million a year ago. The increase in noninterest expense is related to the acquisition made in July 2011 and net expense on other real estate of $922,000.

At June 30, 2012, the Company's total assets were $5.7 billion, up $62.9 million or 1.1% over December 31, 2011. Loans totaled $3.1 billion, up $51.9 million or 1.7% over December 31, 2011. Deposits were $5.1 billion, up $61.9 million over year end 2011. The Company's equity capital was $499.6 million, an increase of $16.5 million or 3.4% over December 31, 2011.

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 93 banking locations serving 51 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)

	2012
													Year-
	Q1			Q2			Q3			Q4			To-Date
Income Statement Data:
Net interest income	$	40,817		$	40,869								$	81,686
Provision for loan losses	173			248									421
Securities transactions	4,032			226									4,258
Total noninterest income	23,437			20,364									43,801
Salaries and employee benefits	24,800			24,830									49,630
Total noninterest expense	42,037			42,563									84,600
Net income	14,005			11,729									25,734
Per Common Share Data:
Net income-basic	0.93			0.77									1.70
Net income-diluted	0.91			0.76									1.67
Cash dividends declared	0.27			0.27									0.54
Common shares outstanding	15,145,280			15,153,991									15,153,991
Average common shares outstanding -
Basic	15,129,868			15,155,525									15,145,066
Diluted	15,410,773			15,426,796									15,421,674
Performance Ratios:
Return on average assets	1.00		%	0.83		%							0.91		%
Return on average equity	11.45			9.46									10.44
Net interest margin	3.18			3.14									3.16
Efficiency ratio	65.42			69.51									67.42

	2011
													Year-
	Q1			Q2			Q3			Q4			To-Date
Income Statement Data:
Net interest income	$	37,289		$	38,006		$	40,218		$	41,384		$	156,897
Provision for loan losses	788			2,013			885			829			4,515
Securities transactions	8			1,316			50			224			1,598
Total noninterest income	17,730			19,679			20,117			19,435			76,961
Salaries and employee benefits	21,812			22,558			23,845			24,016			92,231
Total noninterest expense	36,397			39,610			41,259			41,380			158,646
Net income	11,355			10,115			12,553			11,598			45,621
Per Common Share Data:
Net income-basic	0.74			0.66			0.82			0.77			2.99
Net income-diluted	0.72			0.65			0.81			0.75			2.93
Cash dividends declared	0.25			0.25			0.27			0.27			1.04
Common shares outstanding	15,390,357			15,273,181			15,125,541			15,117,430			15,117,430
Average common shares outstanding -
Basic	15,375,644			15,364,738			15,210,090			15,122,368			15,267,357
Diluted	15,679,298			15,651,953			15,471,659			15,389,289			15,550,131
Performance Ratios:
Return on average assets	0.89		%	0.77		%	0.91		%	0.84		%	0.85		%
Return on average equity	9.90			8.59			10.50			9.59			9.65
Net interest margin	3.21			3.17			3.20			3.24			3.20
Efficiency ratio	66.15			68.67			68.38			68.04			67.84

	BancFirst Corporation
	Summary Financial Information
	(Dollars in thousands, except per share data - Unaudited)

	2012
	Q1			Q2			Q3			Q4
Balance Sheet Data:
Total assets	$	5,737,994		$	5,671,711
Total loans	3,049,376			3,065,439
Allowance for loan losses	(37,633)			(37,436)
Securities	573,801			575,034
Deposits	5,152,856			5,099,648
Stockholders' equity	491,957			499,561
Book value per common share	32.48			32.97
Tangible book value per common share	28.64			29.16
Balance Sheet Ratios:
Average loans to deposits	59.99		%	60.35		%
Average earning assets to total assets	92.51			92.60
Average stockholders' equity to average assets	8.73			8.77
Asset Quality Data:
Past due loans	$	1,150		$	1,403
Nonaccrual loans	20,721			20,702
Restructured loans	18,483			18,089
Total nonperforming and restructured loans	40,354			40,194
Other real estate owned and repossessed assets	12,408			10,223
Total nonperforming and restructured assets	52,762			50,417
Nonperforming and restructured loans to total loans	1.32		%	1.31		%
Nonperforming and restructured assets to total assets	0.92			0.89
Allowance to total loans	1.23			1.22
Allowance to nonperforming and restructured loans	93.26			93.14
Net charge-offs to average loans	0.03			0.03
	2011
	Q1			Q2			Q3			Q4
Balance Sheet Data:
Total assets	$	5,239,658		$	5,267,445		$	5,472,306		$	5,608,825
Total loans	2,796,390			2,861,844			2,984,114			3,013,498
Allowance for loan losses	(36,136)			(37,092)			(37,456)			(37,656)
Securities	681,159			580,059			607,046			614,977
Deposits	4,666,199			4,701,999			4,887,332			5,037,735
Stockholders' equity	466,827			470,397			474,396			483,041
Book value per common share	30.33			30.80			31.36			31.95
Tangible book value per common share	26.71			27.17			27.52			28.07
Balance Sheet Ratios:
Average loans to deposits	60.83		%	60.16		%	60.58		%	60.97		%
Average earning assets to total assets	92.49			92.49			92.22			92.76
Average stockholders' equity to average assets	9.03			8.98			8.67			8.73
Asset Quality Data:
Past due loans	$	3,016		$	1,166		$	1,413		$	822
Nonaccrual loans	24,391			22,469			29,039			21,187
Restructured loans	316			344			1,059			1,041
Total nonperforming and restructured loans	27,723			23,979			31,511			23,050
Other real estate owned and repossessed assets	15,974			15,501			16,723			16,640
Total nonperforming and restructured assets	43,697			39,480			48,234			39,690
Nonperforming and restructured loans to total loans	0.99		%	0.84		%	1.06		%	0.76		%
Nonperforming and restructured assets to total assets	0.83			0.75			0.88			0.71
Allowance to total loans	1.29			1.30			1.26			1.25
Allowance to nonperforming and restructured loans	130.35			154.68			118.87			163.37
Net charge-offs to average loans	0.06			0.15			0.07			0.08

	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, 2012						June 30, 2012
			Interest		Average				Interest		Average
	Average		Income/		Yield/		Average		Income/		Yield/
	Balance		Expense		Rate		Balance		Expense		Rate
ASSETS
Earning assets:
Loans	$	3,073,027	$	41,952	5.48	%	$	3,049,750	$	84,014	5.52	%
Securities – taxable	516,195		2,087		1.62		527,879		4,494		1.71
Securities – tax exempt	51,731		632		4.90		52,504		1,284		4.90
Interest bearing deposits with banks	1,612,649		1,061		0.26		1,596,812		2,034		0.26
Total earning assets	5,253,602		45,732		3.49		5,226,945		91,826		3.52

Nonearning assets:
Cash and due from banks	146,124						146,047
Interest receivable and other assets	311,157						311,793
Allowance for loan losses	(37,635)						(37,649)
Total nonearning assets	419,646						420,191
Total assets	$	5,673,248					$	5,647,136

LIABILITIES AND
STOCKHOLDERS' EQUITY
Interest bearing liabilities:
Transaction deposits	$	721,868	$	260	0.14	%	$	731,827	$	534	0.15	%
Savings deposits	1,721,452		1,401		0.33		1,713,777		2,944		0.34
Time deposits	868,330		2,222		1.03		880,232		4,654		1.06
Short-term borrowings	7,361		8		0.44		7,626		16		0.42
Long-term borrowings	12,783		91		2.86		13,617		196		2.89
Junior subordinated debentures	34,691		565		6.53		35,387		1,151		6.52
Total interest bearing liabilities	3,366,485		4,547		0.54		3,382,466		9,495		0.56

Interest free funds:
Noninterest bearing deposits	1,780,168						1,742,597
Interest payable and other liabilities	29,051						27,920
Stockholders' equity	497,544						494,153
Total interest free funds	2,306,763						2,264,670
Total liabilities and stockholders' equity	$	5,673,248					$	5,647,136
Net interest income			$	41,185					$	82,331
Net interest spread					2.95	%					2.96	%
Net interest margin					3.14	%					3.16	%