BancFirst Corporation Reports Second Quarter Earnings

News provided by

Jul 18, 2013, 05:14 ET

OKLAHOMA CITY, July 18, 2013 /PRNewswire/ -- BancFirst Corporation (NASDAQ GS: BANF) reported net income of $12.6 million, or $0.81 diluted earnings per share, for the second quarter of 2013, compared to net income of $11.7 million, or $0.76 diluted earnings per share, for the second quarter of 2012. Net income for the year to-date was $26.0 million, or $1.68 per share, compared to $25.7 million, or $1.67 per share, for the first half of 2012.

The Company's net interest income for the second quarter of 2013 was $40.6 million compared to $40.9 million for the second quarter of 2012. The net interest margin for the quarter was 3.08% compared to 3.14% a year ago, as interest rates have remained at historically low levels. The provision for loan losses for the second quarter was $516,000, compared to $248,000 a year ago. Net charge-offs for the quarter were 0.01% of average loans, compared to 0.02% for the same period the prior year. Noninterest income for the quarter totaled $21.7 million compared to $20.4 million for the second quarter of 2012. Noninterest expense was $42.5 million compared to $42.6 million a year ago.

At June 30, 2013, the Company's total assets were $5.7 billion, down $272.6 million or 4.5%, from $6.0 billion at December 31, 2012. Loans totaled $3.2 billion, up $2.7 million from December 31, 2012. Deposits totaled $5.2 billion, down $290.4 million due to a temporary influx of deposits at year end 2012 and efforts by the company to move public funds into sweep accounts. The Company's total stockholders' equity was $535.0 million, an increase of $15.4 million or 3.0% over December 31, 2012.

Asset quality remained strong and was little changed from the previous quarters. Nonperforming and restructured assets were 0.80% of total assets compared to 0.81% at December 31, 2012. The allowance to total loans was 1.20% compared to 1.19% at year end 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 92 banking locations serving more than 50 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)

	2013		2013		2012		2012		2012
	2nd Qtr		1st Qtr		4th Qtr		3rd Qtr		2nd Qtr
Condensed Income Statements:
Net interest income	$ 40,630		$ 40,256		$ 42,297		$ 40,832		$ 40,869
Provision for loan losses	516		300		2,446		233		248
Non-interest income:
Trust revenue	2,015		1,906		1,858		1,927		1,823
Service charges on deposits	12,924		12,336		13,419		11,896		11,031
Securities transactions	129		122		272		385		226
Income from sales of loans	691		688		698		737		766
Insurance commissions	3,045		4,045		3,169		3,661		2,803
Cash management	1,626		1,423		1,092		1,971		2,041
Other	1,303		2,015		1,292		1,539		1,674
Total noninterest income	21,733		22,535		21,800		22,116		20,364

Non-interest expense:
Salaries and employee benefits	25,085		25,209		25,264		24,641		24,830
Occupancy and fixed assets expense, net	2,501		2,580		2,776		2,877		2,477
Depreciation	2,358		2,308		2,403		2,253		2,226
Amortization of intangible assets	424		443		456		457		457
Data processing services	1,229		1,185		1,173		1,208		1,158
Net expense from other real estate owned	643		122		178		200		922
Marketing and business promotion	1,456		1,507		1,995		1,998		1,679
Deposit insurance	742		743		761		745		724
Other	8,017		7,847		8,357		8,086		8,090
Total noninterest expense	42,455		41,944		43,363		42,465		42,563
Income before income taxes	19,392		20,547		18,288		20,250		18,422
Income tax expense	6,799		7,175		5,982		6,390		6,693
Net income	12,593		13,372		12,306		13,860		11,729
Per Common Share Data:
Net income-basic	0.83		0.88		0.81		0.91		0.77
Net income-diluted	0.81		0.86		0.79		0.90		0.76
Cash dividends declared	0.29		0.29		0.29		0.29		0.27
Common shares outstanding	15,255,864		15,228,277		15,242,308		15,200,468		15,153,991
Average common shares outstanding -
Basic	15,232,129		15,238,701		15,224,346		15,174,755		15,155,525
Diluted	15,479,749		15,482,517		15,482,222		15,447,395		15,426,796
Performance Ratios:
Return on average assets	0.88	%	0.94	%	0.83	%	0.96	%	0.83	%
Return on average equity	9.48		10.31		9.47		10.86		9.46
Net interest margin	3.08		3.08		3.11		3.06		3.14
Efficiency ratio	68.08		66.80		67.65		67.46		69.51

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

	Six months ended June 30,
	2013		2012
Condensed Income Statements:
Net interest income	$ 80,886		$ 81,686
Provision for loan losses	816		421
Non-interest income:
Trust revenue	3,921		3,530
Service charges on deposits	25,260		21,638
Securities transactions	251		4,258
Income from sales of loans	1,379		1,338
Insurance commissions	7,090		5,796
Cash management	3,049		3,980
Other	3,318		3,261
Total noninterest income	44,268		43,801

Non-interest expense:
Salaries and employee benefits	50,294		49,630
Occupancy and fixed assets expense, net	5,081		4,923
Depreciation	4,666		4,357
Amortization of intangible assets	867		914
Data processing services	2,414		2,441
Net expense from other real estate owned	765		1,169
Marketing and business promotion	2,963		3,334
Deposit insurance	1,485		1,443
Other	15,864		16,389
Total noninterest expense	84,399		84,600
Income before income taxes	39,939		40,466
Income tax expense	13,974		14,732
Net income	$ 25,965		$ 25,734
Per Common Share Data:
Net income-basic	$ 1.70		$ 1.70
Net income-diluted	1.68		1.67
Cash dividends declared	0.58		0.54
Common shares outstanding	15,255,864		15,153,991
Average common shares outstanding -
Basic	15,235,397		15,155,525
Diluted	15,481,870		15,426,796
Performance Ratios:
Return on average assets	0.91	%	0.91	%
Return on average stockholders' equity	9.89		10.44
Net interest margin	3.08		3.16
Efficiency ratio	67.44		67.42

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

	2013		2013		2012		2012		2012
	2nd Qtr		1st Qtr		4th Qtr		3rd Qtr		2nd Qtr
Balance Sheet Data:

Total assets	$ 5,749,666		$ 5,773,926		$ 6,022,250		$ 5,836,751		$ 5,671,711
Total loans	3,245,084		3,219,967		3,242,427		3,116,096		3,065,439
Allowance for loan losses	(38,982)		(38,664)		(38,725)		(37,258)		(37,436)
Securities	520,424		565,490		562,542		540,475		575,034
Deposits	5,150,411		5,174,512		5,440,830		5,253,505		5,099,648
Stockholders' equity	534,961		527,707		519,567		510,387		499,561
Book value per common share	35.07		34.65		34.09		33.58		32.97
Tangible book value per common share	31.42		30.97		30.37		29.82		29.16
Balance Sheet Ratios:
Average loans to deposits	62.89	%	62.27	%	60.71	%	59.99	%	60.35	%
Average earning assets to total assets	92.65		92.79		92.95		92.85		92.60
Average stockholders' equity to average assets	9.28		9.14		8.81		8.83		8.77
Asset Quality Data:
Past due loans	$ 850		$ 542		$ 539		$ 731		$ 1,403
Nonaccrual loans	18,946		20,933		20,549		22,101		20,702
Restructured loans	17,903		17,792		17,866		17,784		18,089
Total nonperforming and restructured loans	37,699		39,267		38,954		40,616		40,194
Other real estate owned and repossessed assets	8,503		9,424		9,567		9,796		10,223
Total nonperforming and restructured assets	46,202		48,691		48,521		50,412		50,417
Nonperforming and restructured loans to total loans	1.16	%	1.22	%	1.20	%	1.30	%	1.31	%
Nonperforming and restructured assets to total assets	0.80		0.84		0.81		0.86		0.89
Allowance to total loans	1.20		1.20		1.19		1.20		1.22
Allowance to nonperforming and restructured loans	103.40		98.47		99.41		91.73		93.14
Net charge-offs to average loans	0.01		0.01		0.03		0.01		0.02

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, 2013				June 30, 2013
			Interest	Average			Interest	Average
		Average	Income/	Yield/		Average	Income/	Yield/
		Balance	Expense	Rate		Balance	Expense	Rate
ASSETS
Earning assets:
	Loans	$ 3,235,966	$ 41,568	5.15	%	$ 3,227,777	$ 82,823	5.17	%
Securities – taxable		515,010	1,295	1.01		519,671	2,648	1.03
Securities – tax exempt		42,801	483	4.53		43,897	1,015	4.66
Interest bearing deposits with banks		1,527,172	971	0.25		1,539,136	1,949	0.26
Total earning assets		5,320,949	44,317	3.34		5,330,481	88,435	3.35

Nonearning assets:
Cash and due from banks		150,781				147,876
Interest receivable and other assets		310,034				309,287
Allowance for loan losses		(38,776)				(38,711)
Total nonearning assets		422,039				418,452
Total assets		$ 5,742,988				$ 5,748,933

LIABILITIES AND
STOCKHOLDERS' EQUITY
Interest bearing liabilities:
Transaction deposits		$ 657,540	$ 163	0.10	%	$ 666,646	$ 330	0.10	%
Savings deposits		1,791,912	1,013	0.23		1,786,325	2,0934	0.24
Time deposits		803,750	1,713	0.86		814,879	3,506	0.87
Short-term borrowings		3,970	1	0.12		4,367	3	0.13
Long-term borrowings		10,957	62	2.27		9,769	124	2.55
Junior subordinated debentures		26,804	491	7.35		26,804	982	7.38
Total interest bearing liabilities		3,294,933	3,443	0.42		3,308,790	7,038	0.43

Interest free funds:
Noninterest bearing deposits		1,892,014				1,889,960
Interest payable and other liabilities		22,988				20,751
Stockholders' equity		533,053				529,432
Total interest free funds		2,448,055				2,440,143
Total liabilities and stockholders' equity		$ 5,742,988				$ 5,748,933
Net interest income			$ 40,874				$ 81,397
Net interest spread				2.92	%			2.92	%
Effect of interest free funds				0.16	%			0.16	%
Net interest margin				3.08	%			3.08	%