BancFirst Ohio Corp. Reports First Quarter 2001 Earnings

Apr 23, 2001, 01:00 ET from BancFirst Ohio Corp.

    ZANESVILLE, Ohio, April 23 /PRNewswire Interactive News Release/ --
 BancFirst Ohio Corp. (Nasdaq:   BFOH) today announced earnings of $3.8 million
 for the quarter ended March 31, 2001, an increase of 25% compared to
 $3.1 million for the comparable period in 2000. Earnings per diluted share
 increased 13% to $.44 for the 2001 period compared to $.39 for the year ago
 period. The Company's annualized returns on average assets and average equity
 were 1.00% and 14.24%, respectively, for the first quarter of 2001 compared to
 .96% and 15.52%, respectively, for the same period a year ago. Tangible
 earnings (net income excluding the effects of amortization of goodwill and
 other intangibles) were $4.3 million, or $.49 per diluted share, for the first
 quarter of 2001 compared to $3.4 million, or $.42 per diluted share, for the
 same period a year ago and represented annualized returns on average tangible
 equity of 19.79% in 2001 and 20.14% in 2000. Per share amounts for 2000 have
 been adjusted to give retroactive effect to the Company's 5% stock dividend
 that was paid October 31, 2000 to shareholders of record as of October 10,
 2000.
     Total revenue (interest income plus fee and other income) increased
 $6.7 million, or 25%, to $33.7 million for the three months ended March 31,
 2001 compared to $27.0 million for the same period a year ago. Net interest
 income for the quarter was $11.1 million, an increase of $1.5 million, or 15%,
 compared to net interest income for the first quarter of 2000. This increase
 was attributed to a $260.5 million increase in average interest-bearing assets
 due primarily to assets added from the Milton Federal Financial Corporation
 ("Milton") acquisition in June 2000 and a 33 basis point increase in the
 average yield on earning assets in the 2001 period compared to 2000, offset in
 part by a 58 basis point increase in the Company's cost of funds. The net
 interest margin was 3.13% in 2001 compared to 3.30% in the year ago quarter
 and 2.97% for the fourth quarter of 2000. The Company experienced a steady
 decline in its net interest margin throughout 2000 primarily due to increases
 in short-term market interest rates, increases in borrowing spreads, inversion
 of the yield curve and competitive pricing pressures for deposits. The
 improvement in the Company's net interest margin in the first quarter of 2001
 resulted from declines in market interest rates combined with the maturity of
 higher costing certificates of deposit commencing in February 2001. Further
 improvement in the Company's net interest margin in future quarters as a
 result of recent, as well as potential future declines in interest rates and
 the continuing maturity of higher costing certificates of deposit may be
 substantially offset by the impact of prepayments and re-pricing of higher
 yielding assets.
     Share repurchase activity has been minimal in recent months with
 37,300 common shares repurchased during the first quarter of 2001.
     Non-interest income for the first quarter of 2001 was $3.4 million, an
 increase of $443,000, or 15%, from the prior year quarter. Fee and other
 income increased $247,000, or 10%. This increase was primarily attributed to a
 $164,000 increase in SBA servicing income, as well as increases in earnings on
 bank-owned life insurance, electronic banking fees and customer service fees,
 offset in part by a decrease in trust and financial planning income. SBA
 servicing fee income benefited from lower prepayment activity and higher
 balances of serviced loans during 2001 as compared to the year ago period
 while trust and financial planning income was primarily affected by lower
 asset values and a reduction in investment activity that resulted from general
 market conditions. Gains on sales of loans increased $93,000 to $708,000 for
 the 2001 quarter compared to $615,000 in 2000. For the quarter ended March 31,
 2001, gains on sales of loans consisted of $600,000 from sales of SBA loans
 which were comparable to results for the year ago quarter and $108,000 from
 sales of residential mortgage loans compared to $15,000 for the year ago
 quarter. The improved results from residential mortgage loan sale activity in
 2001 was primarily attributed to declining interest rates. The foregoing
 increases reflect the Company's continued emphasis on increasing fee and other
 income as a percentage of total revenues. Gains on sales of securities in the
 2001 quarter totaled $103,000, with no comparable amount in 2000. Non-interest
 expense increased $624,000 to $8.3 million in the first quarter of 2001
 compared to $7.7 million in the first quarter of 2000. This increase resulted
 primarily from expenses added by Milton's operations as well as additional
 costs associated with fee income generating activities.
     Total assets increased $234.0 million to $1.6 billion at March 31, 2001
 from $1.3 billion at March 31, 2000. This increase reflects assets added by
 the Milton acquisition which approximated $215.6 million (net of sales of
 Milton's investment securities following the acquisition) as well as continued
 growth in the Company's loan portfolio. Excluding loans added by the Milton
 acquisition, total loans have increased $83.1 million from a year ago to
 $1.1 billion at March 31, 2001. Deposits totaled $1.1 billion at March 31,
 2001 compared to $807.4 million at March 31, 2000. This increase of
 $322.6 million was also a result of deposits totaling $162.8 million that were
 added by the Milton acquisition as well as increases in retail and wholesale
 interest-bearing deposit accounts.
     At March 31, 2001, the Company's allowance for possible loan losses was
 $10.2 million, or .93% of total loans, compared to $7.8 million, or .88% of
 total loans at March 31, 2000. Non-performing loans totaled $11.2 million, or
 1.03% of total loans at March 31, 2001 compared to $6.5 million, or .73%, of
 total loans one year ago and $9.9 million, or .91% at year end 2000. Non-
 accrual loans represented $5.9 million and accruing loans 90 days or more past
 due represented $5.3 million of the 2001 total. The increase in non-performing
 loans from year end 2000 was primarily attributed to a $1.5 million increase
 in non-performing residential mortgage loans. Annualized net charge-offs as a
 percent of average loans were .17% for the three months ended March 31, 2001
 compared to .06% for the first quarter of 2000 and .18% for the fourth quarter
 of 2000.
     This press release contains certain forward-looking statements regarding
 expected future financial performance which are not historical facts and which
 involve risks and uncertainties. Although the Company believes that the
 assumptions underlying the forward-looking statements contained herein are
 reasonable, any of the assumptions could be inaccurate, and therefore, there
 can be no assurance that the forward-looking statements included herein will
 prove to be accurate. Factors that could cause actual results to differ from
 the results discussed in the forward-looking statements, all of which are
 difficult to predict and many of which are beyond the control of the Company,
 are discussed in the Company's Form 10-K for the year ended December 31, 2000
 and its other filings with the Securities and Exchange Commission.
     Based in Zanesville, Ohio, BancFirst Ohio Corp. is a $1.6 billion bank
 holding company for The First National Bank of Zanesville, a full-service
 financial services organization which operates as First National Bank in
 Muskingum County, Ohio and as Bank First National, a division of The First
 National Bank of Zanesville in its other markets.  It has 27 retail Financial
 Centers serving clients throughout central Ohio. The bank also has business
 lending centers in Columbus, Cleveland, Dayton, Cincinnati, Louisville,
 Detroit and Indianapolis, and was the #1 SBA 7(a) lender in Columbus in 1999
 and 2000. The bank offers complete trust services and financial planning
 services through its wholly-owned subsidiaries First Financial Services Group,
 N.A. and Chornyak & Associates, Inc.. For more information on BancFirst Ohio
 Corp. and its subsidiaries, visit the Company on the worldwide web at
 www.bancfirstohio.com .
 
 
     BANCFIRST OHIO CORP.
     FINANCIAL HIGHLIGHTS
     (amounts in thousands, except ratio and per share data)
 
                                                      Three Months Ended
                                                            March 31
                                                     2001             2000
     Interest income:
       Interest and fees on loans                  $23,684          $18,025
       Interest and dividends on
        securities                                   6,600            6,030
       Total interest income                        30,284           24,055
 
     Interest expense:
       Deposits                                     14,244            8,256
       Borrowings                                    4,967            6,188
       Total interest expense                       19,211           14,444
       Net interest income                          11,073            9,611
 
       Provision for loan losses                       465              450
 
       Trust income                                    592              650
       Customer service fees                           604              528
       Financial planning income                       299              347
       Gain on sales of loans                          708              615
       Investment securities gains                     103                -
       Other income                                  1,110              833
       Total noninterest income                      3,416            2,973
 
       Salaries and benefits                         4,470            4,417
       Net occupancy expense                           559              527
       Furniture and equipment expense                 291              242
       Data processing expense                         399              314
       Amortization of intangibles                     501              351
       Taxes other than income taxes                   243              238
       Deposit insurance                                54               42
       Other                                         1,792            1,554
       Total noninterest expense                     8,309            7,685
       Income before taxes                           5,715            4,449
 
       Federal income taxes                          1,867            1,375
       Net income                                   $3,848           $3,074
 
     Basic earnings per share                        $0.44            $0.39 (a)
     Diluted earnings per share                      $0.44            $0.39 (a)
 
     Average Shares Outstanding:
       Basic                                         8,789            7,938 (a)
       Diluted                                       8,822            7,953 (a)
     Actual Shares Outstanding                       8,768            7,841 (a)
 
 
     BANCFIRST OHIO CORP.
     FINANCIAL HIGHLIGHTS
     (amounts in thousands, except ratio and per share data)
 
 
     Balance Sheet Data:
     Total assets                               $1,555,031       $1,321,036
     Total loans                                 1,091,442          881,911
     Commercial and commercial real estate
      loans                                        495,716          433,540
     Residential mortgage loans                    465,608          339,477
     Consumer loans                                130,118          108,894
     Allowance for possible loan losses             10,169            7,761
     Securities                                    325,517          350,050
     Goodwill and other intangible assets           21,390           12,255
     Deposits                                    1,129,932          807,367
     Borrowings                                    299,863          423,098
     Shareholders' equity                          109,782           79,086
     Nonperforming loans:
       Non-accrual                                   5,859            3,234
       Past due 90 days or more and still
        accruing                                     5,331            3,240
     Restructured loan                               2,898            2,988
     Other real estate owned                           910              240
 
     Average Balance Sheet Data:
     Total assets                               $1,561,335       $1,284,702
     Loans                                       1,091,690          865,816
     Securities                                    330,179          333,718
     Earning assets                              1,460,203        1,199,697
     Interest-bearing deposits                   1,051,607          722,846
     Borrowings                                    313,709          409,548
     Shareholders' equity                          109,567           79,684
 
     Performance Ratios:
     Return on average assets                        1.00%            0.96%
     Return on average equity                       14.24%           15.52%
     Net interest margin                             3.13%            3.30%
     Yield on earning assets                         8.47%            8.14%
     Cost of funds                                   5.71%            5.13%
     Non-interest income to average assets           0.89%            0.93%
     Non-interest expense to average
      assets (b)                                     2.03%            2.30%
     Efficiency ratio                               53.55%           57.19%
     FTE interest adjustment                           195              240
 
     (a) Retroactively adjusted for 5% stock dividend paid October 31, 2000.
 
     (b) Excludes amortization expense.
 
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SOURCE BancFirst Ohio Corp.
    ZANESVILLE, Ohio, April 23 /PRNewswire Interactive News Release/ --
 BancFirst Ohio Corp. (Nasdaq:   BFOH) today announced earnings of $3.8 million
 for the quarter ended March 31, 2001, an increase of 25% compared to
 $3.1 million for the comparable period in 2000. Earnings per diluted share
 increased 13% to $.44 for the 2001 period compared to $.39 for the year ago
 period. The Company's annualized returns on average assets and average equity
 were 1.00% and 14.24%, respectively, for the first quarter of 2001 compared to
 .96% and 15.52%, respectively, for the same period a year ago. Tangible
 earnings (net income excluding the effects of amortization of goodwill and
 other intangibles) were $4.3 million, or $.49 per diluted share, for the first
 quarter of 2001 compared to $3.4 million, or $.42 per diluted share, for the
 same period a year ago and represented annualized returns on average tangible
 equity of 19.79% in 2001 and 20.14% in 2000. Per share amounts for 2000 have
 been adjusted to give retroactive effect to the Company's 5% stock dividend
 that was paid October 31, 2000 to shareholders of record as of October 10,
 2000.
     Total revenue (interest income plus fee and other income) increased
 $6.7 million, or 25%, to $33.7 million for the three months ended March 31,
 2001 compared to $27.0 million for the same period a year ago. Net interest
 income for the quarter was $11.1 million, an increase of $1.5 million, or 15%,
 compared to net interest income for the first quarter of 2000. This increase
 was attributed to a $260.5 million increase in average interest-bearing assets
 due primarily to assets added from the Milton Federal Financial Corporation
 ("Milton") acquisition in June 2000 and a 33 basis point increase in the
 average yield on earning assets in the 2001 period compared to 2000, offset in
 part by a 58 basis point increase in the Company's cost of funds. The net
 interest margin was 3.13% in 2001 compared to 3.30% in the year ago quarter
 and 2.97% for the fourth quarter of 2000. The Company experienced a steady
 decline in its net interest margin throughout 2000 primarily due to increases
 in short-term market interest rates, increases in borrowing spreads, inversion
 of the yield curve and competitive pricing pressures for deposits. The
 improvement in the Company's net interest margin in the first quarter of 2001
 resulted from declines in market interest rates combined with the maturity of
 higher costing certificates of deposit commencing in February 2001. Further
 improvement in the Company's net interest margin in future quarters as a
 result of recent, as well as potential future declines in interest rates and
 the continuing maturity of higher costing certificates of deposit may be
 substantially offset by the impact of prepayments and re-pricing of higher
 yielding assets.
     Share repurchase activity has been minimal in recent months with
 37,300 common shares repurchased during the first quarter of 2001.
     Non-interest income for the first quarter of 2001 was $3.4 million, an
 increase of $443,000, or 15%, from the prior year quarter. Fee and other
 income increased $247,000, or 10%. This increase was primarily attributed to a
 $164,000 increase in SBA servicing income, as well as increases in earnings on
 bank-owned life insurance, electronic banking fees and customer service fees,
 offset in part by a decrease in trust and financial planning income. SBA
 servicing fee income benefited from lower prepayment activity and higher
 balances of serviced loans during 2001 as compared to the year ago period
 while trust and financial planning income was primarily affected by lower
 asset values and a reduction in investment activity that resulted from general
 market conditions. Gains on sales of loans increased $93,000 to $708,000 for
 the 2001 quarter compared to $615,000 in 2000. For the quarter ended March 31,
 2001, gains on sales of loans consisted of $600,000 from sales of SBA loans
 which were comparable to results for the year ago quarter and $108,000 from
 sales of residential mortgage loans compared to $15,000 for the year ago
 quarter. The improved results from residential mortgage loan sale activity in
 2001 was primarily attributed to declining interest rates. The foregoing
 increases reflect the Company's continued emphasis on increasing fee and other
 income as a percentage of total revenues. Gains on sales of securities in the
 2001 quarter totaled $103,000, with no comparable amount in 2000. Non-interest
 expense increased $624,000 to $8.3 million in the first quarter of 2001
 compared to $7.7 million in the first quarter of 2000. This increase resulted
 primarily from expenses added by Milton's operations as well as additional
 costs associated with fee income generating activities.
     Total assets increased $234.0 million to $1.6 billion at March 31, 2001
 from $1.3 billion at March 31, 2000. This increase reflects assets added by
 the Milton acquisition which approximated $215.6 million (net of sales of
 Milton's investment securities following the acquisition) as well as continued
 growth in the Company's loan portfolio. Excluding loans added by the Milton
 acquisition, total loans have increased $83.1 million from a year ago to
 $1.1 billion at March 31, 2001. Deposits totaled $1.1 billion at March 31,
 2001 compared to $807.4 million at March 31, 2000. This increase of
 $322.6 million was also a result of deposits totaling $162.8 million that were
 added by the Milton acquisition as well as increases in retail and wholesale
 interest-bearing deposit accounts.
     At March 31, 2001, the Company's allowance for possible loan losses was
 $10.2 million, or .93% of total loans, compared to $7.8 million, or .88% of
 total loans at March 31, 2000. Non-performing loans totaled $11.2 million, or
 1.03% of total loans at March 31, 2001 compared to $6.5 million, or .73%, of
 total loans one year ago and $9.9 million, or .91% at year end 2000. Non-
 accrual loans represented $5.9 million and accruing loans 90 days or more past
 due represented $5.3 million of the 2001 total. The increase in non-performing
 loans from year end 2000 was primarily attributed to a $1.5 million increase
 in non-performing residential mortgage loans. Annualized net charge-offs as a
 percent of average loans were .17% for the three months ended March 31, 2001
 compared to .06% for the first quarter of 2000 and .18% for the fourth quarter
 of 2000.
     This press release contains certain forward-looking statements regarding
 expected future financial performance which are not historical facts and which
 involve risks and uncertainties. Although the Company believes that the
 assumptions underlying the forward-looking statements contained herein are
 reasonable, any of the assumptions could be inaccurate, and therefore, there
 can be no assurance that the forward-looking statements included herein will
 prove to be accurate. Factors that could cause actual results to differ from
 the results discussed in the forward-looking statements, all of which are
 difficult to predict and many of which are beyond the control of the Company,
 are discussed in the Company's Form 10-K for the year ended December 31, 2000
 and its other filings with the Securities and Exchange Commission.
     Based in Zanesville, Ohio, BancFirst Ohio Corp. is a $1.6 billion bank
 holding company for The First National Bank of Zanesville, a full-service
 financial services organization which operates as First National Bank in
 Muskingum County, Ohio and as Bank First National, a division of The First
 National Bank of Zanesville in its other markets.  It has 27 retail Financial
 Centers serving clients throughout central Ohio. The bank also has business
 lending centers in Columbus, Cleveland, Dayton, Cincinnati, Louisville,
 Detroit and Indianapolis, and was the #1 SBA 7(a) lender in Columbus in 1999
 and 2000. The bank offers complete trust services and financial planning
 services through its wholly-owned subsidiaries First Financial Services Group,
 N.A. and Chornyak & Associates, Inc.. For more information on BancFirst Ohio
 Corp. and its subsidiaries, visit the Company on the worldwide web at
 www.bancfirstohio.com .
 
 
     BANCFIRST OHIO CORP.
     FINANCIAL HIGHLIGHTS
     (amounts in thousands, except ratio and per share data)
 
                                                      Three Months Ended
                                                            March 31
                                                     2001             2000
     Interest income:
       Interest and fees on loans                  $23,684          $18,025
       Interest and dividends on
        securities                                   6,600            6,030
       Total interest income                        30,284           24,055
 
     Interest expense:
       Deposits                                     14,244            8,256
       Borrowings                                    4,967            6,188
       Total interest expense                       19,211           14,444
       Net interest income                          11,073            9,611
 
       Provision for loan losses                       465              450
 
       Trust income                                    592              650
       Customer service fees                           604              528
       Financial planning income                       299              347
       Gain on sales of loans                          708              615
       Investment securities gains                     103                -
       Other income                                  1,110              833
       Total noninterest income                      3,416            2,973
 
       Salaries and benefits                         4,470            4,417
       Net occupancy expense                           559              527
       Furniture and equipment expense                 291              242
       Data processing expense                         399              314
       Amortization of intangibles                     501              351
       Taxes other than income taxes                   243              238
       Deposit insurance                                54               42
       Other                                         1,792            1,554
       Total noninterest expense                     8,309            7,685
       Income before taxes                           5,715            4,449
 
       Federal income taxes                          1,867            1,375
       Net income                                   $3,848           $3,074
 
     Basic earnings per share                        $0.44            $0.39 (a)
     Diluted earnings per share                      $0.44            $0.39 (a)
 
     Average Shares Outstanding:
       Basic                                         8,789            7,938 (a)
       Diluted                                       8,822            7,953 (a)
     Actual Shares Outstanding                       8,768            7,841 (a)
 
 
     BANCFIRST OHIO CORP.
     FINANCIAL HIGHLIGHTS
     (amounts in thousands, except ratio and per share data)
 
 
     Balance Sheet Data:
     Total assets                               $1,555,031       $1,321,036
     Total loans                                 1,091,442          881,911
     Commercial and commercial real estate
      loans                                        495,716          433,540
     Residential mortgage loans                    465,608          339,477
     Consumer loans                                130,118          108,894
     Allowance for possible loan losses             10,169            7,761
     Securities                                    325,517          350,050
     Goodwill and other intangible assets           21,390           12,255
     Deposits                                    1,129,932          807,367
     Borrowings                                    299,863          423,098
     Shareholders' equity                          109,782           79,086
     Nonperforming loans:
       Non-accrual                                   5,859            3,234
       Past due 90 days or more and still
        accruing                                     5,331            3,240
     Restructured loan                               2,898            2,988
     Other real estate owned                           910              240
 
     Average Balance Sheet Data:
     Total assets                               $1,561,335       $1,284,702
     Loans                                       1,091,690          865,816
     Securities                                    330,179          333,718
     Earning assets                              1,460,203        1,199,697
     Interest-bearing deposits                   1,051,607          722,846
     Borrowings                                    313,709          409,548
     Shareholders' equity                          109,567           79,684
 
     Performance Ratios:
     Return on average assets                        1.00%            0.96%
     Return on average equity                       14.24%           15.52%
     Net interest margin                             3.13%            3.30%
     Yield on earning assets                         8.47%            8.14%
     Cost of funds                                   5.71%            5.13%
     Non-interest income to average assets           0.89%            0.93%
     Non-interest expense to average
      assets (b)                                     2.03%            2.30%
     Efficiency ratio                               53.55%           57.19%
     FTE interest adjustment                           195              240
 
     (a) Retroactively adjusted for 5% stock dividend paid October 31, 2000.
 
     (b) Excludes amortization expense.
 
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 SOURCE  BancFirst Ohio Corp.