8-K 1 d8k.txt FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) February 28, 2002 ----------------- BANCFIRST CORPORATION --------------------- (Exact name of registrant as specified in its charter) OKLAHOMA 0-14384 73-1221379 -------- ------- ---------- (State or other jurisdiction of (Commission (I.R.S. Employer incorporation) File Number) Identification No.) 101 North Broadway, Oklahoma City, Oklahoma 73102 ------------------------------------------- ----- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (405) 270-1086 -------------- 1 Item 9. Regulation FD Disclosure. BANCFIRST CORPORATION CONSOLIDATED BALANCE SHEET (Unaudited) (Dollars in thousands)
December 31, ------------------------------- 2001 2000 -------------- -------------- ASSETS Cash and due from banks $ 152,577 $ 162,455 Interest-bearing deposits with banks 12,528 663 Federal funds sold 208,000 65,900 Securities (market value: $545,953 and $561,434, respectively) 544,291 560,551 Loans: Total loans (net of unearned interest) 1,717,433 1,666,338 Allowance for loan losses (24,531) (25,380) ------------- ------------- Loans, net 1,692,902 1,640,958 Premises and equipment, net 61,642 57,795 Other real estate owned 2,132 1,453 Intangible assets, net 22,149 25,156 Accrued interest receivable 22,012 27,288 Other assets 38,812 28,036 ------------- ------------- Total assets $ 2,757,045 $ 2,570,255 ============= ============= LIABILITIES AND STOCKHOLDERS' EQUITY Deposits: Noninterest-bearing $ 599,108 $ 509,770 Interest-bearing 1,802,220 1,757,627 ------------- ------------- Total deposits 2,401,328 2,267,397 Short-term borrowings 52,091 37,292 Long-term borrowings 24,090 26,613 9.65% Capital Securities 25,000 25,000 Accrued interest payable 9,391 10,302 Other liabilities 19,837 6,693 Minority interest 2,140 -- ------------- ------------- Total liabilities 2,533,877 2,373,297 ------------- ------------- Commitments and contingent liabilities Stockholders' equity: Common stock, $1.00 par (shares issued: 8,260,099 and 8,326,638, respectively) 8,260 8,327 Capital surplus 57,412 56,169 Retained earnings 148,306 130,932 Accumulated other comprehensive income 9,190 1,530 ------------- ------------- Total stockholders' equity 223,168 196,958 ------------- ------------- Total liabilities and stockholders' equity $ 2,757,045 $ 2,570,255 ============= =============
See accompanying notes to consolidated financial statements. 2 BANCFIRST CORPORATION CONSOLIDATED STATEMENT OF INCOME (Unaudited) (Dollars in thousands, except per share data)
Three Months Ended Year Ended December 31, December 31, ------------------------- ------------------------- 2001 2000 2001 2000 ---------- ---------- ---------- ---------- INTEREST INCOME Loans, including fees $ 33,180 $ 39,091 $ 144,250 $ 145,356 Securities: Taxable 7,031 8,087 29,513 33,018 Tax-exempt 524 596 2,223 2,201 Federal funds sold 770 613 6,266 1,714 Interest-bearing deposits with banks 121 52 391 100 ---------- ---------- ---------- ---------- Total interest income 41,626 48,439 182,643 182,389 ---------- ---------- ---------- ---------- INTEREST EXPENSE Deposits 14,351 20,412 72,009 73,974 Short-term borrowings 189 457 1,632 1,898 Long-term borrowings 391 446 1,623 1,735 9.65% Capital Securities 612 612 2,447 2,447 ---------- ---------- ---------- ---------- Total interest expense 15,543 21,927 77,711 80,054 ---------- ---------- ---------- ---------- Net interest income 26,083 26,512 104,932 102,335 Provision for loan losses 388 735 1,780 4,045 ---------- ---------- ---------- ---------- Net interest income after provision for loan losses 25,695 25,777 103,152 98,290 ---------- ---------- ---------- ---------- NONINTEREST INCOME Trust revenue 945 765 3,632 3,130 Service charges on deposits 5,480 4,681 19,880 17,493 Securities transactions (228) -- 221 -- Income from sales of loans 331 345 947 1,186 Other 3,073 1,938 12,228 8,093 ---------- ---------- ---------- ---------- Total noninterest income 9,601 7,729 36,908 29,902 ---------- ---------- ---------- ---------- NONINTEREST EXPENSE Salaries and employee benefits 13,894 12,975 54,513 49,208 Occupancy and fixed assets expense, net 1,395 1,617 5,815 5,768 Depreciation 1,414 1,361 5,342 5,186 Amortization of intangibles 731 898 2,996 3,249 Data processing services 527 602 2,240 2,505 Net expense from other real estate owned 28 88 153 400 Other 6,486 5,875 25,562 21,408 ---------- ---------- ---------- ---------- Total noninterest expense 24,474 23,416 96,620 87,724 ---------- ---------- ---------- ---------- Income before taxes 10,822 10,090 43,440 40,468 Income tax expense (3,927) (3,370) (15,479) (14,251) ---------- ---------- ---------- ---------- Net income 6,895 6,720 27,961 26,217 Other comprehensive income, net of tax: Unrealized gains (losses) on securities (2,023) 3,655 7,660 5,038 ---------- ---------- ---------- ---------- Comprehensive income $ 4,872 $ 10,375 $ 35,621 $ 31,255 ========== ========== ========== ========== NET INCOME PER COMMON SHARE Basic $ 0.84 $ 0.81 $ 3.38 $ 3.22 ========== ========== ========== ========== Diluted $ 0.83 $ 0.80 $ 3.34 $ 3.19 ========== ========== ========== ==========
See accompanying notes to consolidated financial statements. 3 BANCFIRST CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollars in thousands, except per share data) (1) GENERAL The accompanying consolidated financial statements include the accounts of BancFirst Corporation, BFC Capital Trust I, Century Life Assurance Company, Council Oak Capital, Inc., Council Oak Partners, LLC, and BancFirst and its subsidiaries. All significant intercompany accounts and transactions have been eliminated. Assets held in a fiduciary or agency capacity are not assets of the Company and, accordingly, are not included in the consolidated financial statements. The unaudited interim financial statements contained herein reflect all adjustments which are, in the opinion of management, necessary to provide a fair statement of the financial position and results of operations of the Company for the interim periods presented. All such adjustments are of a normal and recurring nature. There have been no significant changes in the accounting policies of the Company since December 31, 2000, the date of the most recent annual report. Certain amounts in the 2000 financial statements have been reclassified to conform to the 2001 presentation. The preparation of financial statements in conformity with generally accepted accounting principles inherently involves the use of estimates and assumptions that affect the amounts reported in the financial statements and the related disclosures. Such estimates and assumptions may change over time and actual amounts may differ from those reported. (2) RECENT ACCOUNTING PRONOUNCEMENTS The Financial Accounting Standards Board (the "FASB") Statement of Financial Accounting Standards No. 133, "Accounting for Derivative Instruments and Hedging Activities", as amended by Statements 137 and 138, was adopted by the Company on January 1, 2001. This Statement established accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts, and for hedging activities. It requires that an entity recognize all derivatives as either assets or liabilities in the statement of financial position and measure those financial instruments at fair value. The accounting for changes in the fair value of a derivative instrument depends on the intended use of the derivative and its resulting designation. The adoption of this standard did not have a material effect on the Company's consolidated financial statements. In September 2000, the FASB issued Statement of Financial Accounting Standards No. 140, "Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities -A Replacement of FASB Statement No. 125". This Statement is effective for transfers occurring after March 31, 2001 and for disclosures relating to securitization transactions and collateral for fiscal years ending after December 15, 2000. The adoption of this standard did not have a material effect on the Company's consolidated financial statements. In June 2001, the FASB issued Statement of Financial Accounting Standards No. 141, "Business Combinations". This Statement is effective for all business combinations initiated after June 30, 2001, and requires that all business combinations be accounted for using the purchase method. Also in June 2001, the FASB issued Statement of Financial Accounting Standards No. 142, "Goodwill and Other Intangible Assets". Statement 142 requires that, for fiscal years beginning after December 15, 2001, goodwill and other indefinite-lived intangible assets already recognized in an entity's financial statements no longer be amortized, and that goodwill and other indefinite-lived intangible assets acquired after June 30, 2001 not be amortized. Instead, goodwill and other indefinite-lived intangible assets will be tested at least annually for impairment by comparing the fair value of those assets with their recorded amounts. Any impairment losses will be reported in the entity's income statement. The adoption of Statement 142 will have a material effect on the consolidated financial statements of the Company by eliminating goodwill amortization from its income statement and from the calculations of net income per share. Excluding the effects of goodwill amortization, the Company's net income for the three months and year ended December 31, 2001 would have been $7,392 and $30,028, respectively. Net income per diluted share for the same periods would have been $0.89 and $3.59, respectively. Management does not believe that the Company will recognize any impairment charges from the adoption of Statement 142. 4 In June 2001, the FASB issued Statement of Financial Accounting Standards No. 143, "Accounting for Asset Retirement Obligations". This Statement is effective for financial statements issued for fiscal years beginning after June 15, 2002. Statement 143 requires that the fair value of a liability for an asset retirement obligation be recognized in the period in which it is incurred if a reasonable estimate of fair value can be made. The associated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset. The Company does not expect the adoption of this standard to have a material effect on the Company's consolidated financial statements. In August 2001, the FASB issued Statement of Financial Accounting Standards No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets". This Statement is effective for fiscal years beginning after December 15, 2001, and replaces Statement of Financial Accounting Standards No. 121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Asets to be Disposed Of" and also replaces the provisions of Accounting Principles Board Opinion No. 30, "Reporting Results of Operations - Reporting the Effects of Disposal of a Segment of a Business", for disposals of segments of a business. Statement 144 requires that long-lived assets to be disposed of by sale be measured at the lower of carrying amount or fair value less cost to sell, whether reported in continuing operations or in discontinued operations. Statement 144 also broadens the reporting of discontinued operations to include all components of an entity with operations that can be distinguished from the rest of the ongoing operations of the entity. Since the provisions of this Statement are to be applied prospectively, the adoption of this new standard will not have a material effect on the Company's consolidated financial statements. (3) RECENT DEVELOPMENTS; MERGERS, ACQUISITIONS AND DISPOSALS In March 2000, BancFirst Corporation became a financial holding company under the new Gramm-Leach-Bliley financial services modernization law. This will allow the Company to expand into new financial activities such as insurance underwriting, securities underwriting and dealing, and mutual fund distribution. In October 2000, BancFirst Corporation completed the acquisition of First Southwest Corporation of Frederick, Oklahoma ("First Southwest") which had total assets of approximately $118,000. All of the outstanding shares of First Southwest common stock were exchanged for 266,681 shares of BancFirst Corporation common stock and approximately $4,335 of cash. The acquisition was accounted for as a purchase. Accordingly, the effects of the acquisition are included in the Company's consolidated financial statements from the date of the acquisition forward. Total intangible assets of $4,279 were recorded for the purchase. The acquisition did not have a material effect on the results of operations of the Company for 2000. In January 2001, BancFirst Corporation completed the acquisition of 75% of the outstanding common stock of Century Life Assurance Company ("Century Life") from Pickard Limited Partnership, a Rainbolt family partnership. Century Life underwrites credit life insurance, credit accident and health insurance, and ordinary life insurance. The Rainbolt family is the largest shareholder of BancFirst Corporation and two members of the family are the Chairman and the CEO of BancFirst Corporation. The purchase price was $5,429. At December 31, 2000, Century Life had total assets of $22,964 and total stockholders' equity of $6,956. The acquisition was accounted for as a book value purchase. Accordingly, the acquisition was recorded based on the book value of Century Life and the effects of the acquisition are included in the Company's consolidated financial statements from the date of the acquisition forward. The acquisition is not expected to have a material effect on the results of operations of the Company for 2001. (4)SECURITIES The table below summarizes securities held for investment and securities available for sale. December 31, --------------------- 2001 2000 --------- --------- Held for investment at cost (market value: $73,538 $ 71,876 $ 106,991 and $107,874, respectively) Available for sale, at market value 472,415 453,560 --------- --------- Total $ 544,291 $ 560,551 ========= ========= 5 (5) LOANS AND ALLOWANCE FOR LOAN LOSSES The following is a schedule of loans outstanding by category:
December 31, --------------------------------------------------- 2001 2000 -------------------------- ---------------------- Amount Percent Amount Percent ------------- ------------ ------------ -------- Commercial and industrial $ 396,409 23.08% $ 394,534 23.68% Agriculture 96,016 5.59 91,263 5.48 State and political subdivisions: Taxable 152 0.01 47 0.01 Tax-exempt 17,602 1.02 17,232 1.03 Real Estate: Construction 84,445 4.92 84,637 5.08 Farmland 58,080 3.38 56,695 3.40 One to four family residences 383,793 22.34 372,460 22.35 Multifamily residential properties 15,906 0.93 19,869 1.19 Commercial 358,363 20.87 322,759 19.37 Consumer 271,475 15.81 275,175 16.51 Other 35,192 2.05 31,667 1.90 ------------ -------- ----------- ------- Total loans $1,717,433 100.00% $1,666,338 100.00% ============ ======== =========== ======= Loans held for sale (included above) $ 10,955 $ 5,106 ============ ===========
The Company's loans are mostly to customers within Oklahoma and over half of the loans are secured by real estate. Credit risk on loans is managed through limits on amounts loaned to individual borrowers, underwriting standards and loan monitoring procedures. The amounts and types of collateral obtained to secure loans are based upon the Company's underwriting standards and management's credit evaluation. Collateral varies, but may include real estate, equipment, accounts receivable, inventory, livestock and securities. The Company's interest in collateral is secured through filing mortgages and liens, and in some cases, by possession of the collateral. The amount of estimated loss due to credit risk in the Company's loan portfolio is provided for in the allowance for loan losses. The amount of the allowance required to provide for all existing losses in the loan portfolio is an estimate based upon evaluations of loans, appraisals of collateral and other estimates which are subject to rapid change due to changing economic conditions and the economic prospects of borrowers. It is reasonably possible that a material change could occur in the estimated allowance for loan losses in the near term Changes in the allowance for loan losses are summarized as follows:
Three Months Ended Year Ended , December 31, December 31, ------------------------ ------------------------ 2001 2000 2001 2000 ------------ ----------- ----------- ------------ Balance at beginning of period $ 24,993 $ 24,076 $ 25,380 $ 22,548 ----------- ----------- ------------ ------------ Charge-offs (1,069) (1,375) (3,657) (4,377) Recoveries 219 466 1,028 1,686 ------------ ----------- ----------- ------------ Net charge-offs (850) (909) (2,629) (2,691) ------------ ----------- ----------- ------------ Provisions charged to operations 388 735 1,780 4,405 Additions from acquisitions -- 1,478 -- 1,478 ------------ ----------- ----------- ------------ Total additions 388 2,213 1,780 5,523 ------------ ----------- ----------- ------------ Balance at end of period $ 24,531 $ 25,380 $ 24,531 $ 25,380 ============ =========== =========== ============
6 The net charge-offs by category are summarized as follows:
Three Months Ended Year Ended December 31, December 31, ------------------------ ------------------------ 2001 2000 2001 2000 ------------ ----------- ----------- ------------ Commercial, financial and other $ 100 $ (16) $ 582 $ 519 Real estate - construction 10 65 10 121 Real estate - mortgage 57 143 131 341 Consumer 683 717 1,906 1,710 ------------ ----------- ----------- ------------ Total $ 850 $ 909 $ 2,629 $ 2,691 ============ =========== =========== ============
(6) NONPERFORMING AND RESTRUCTURED ASSETS Below is a summary of nonperforming and restructured assets:
December 31, ------------------------ 2001 2000 ----------- ----------- Past due over 90 days and still accruing $ 1,742 $ 2,790 Nonaccrual 10,225 8,852 Restructured 1,348 569 ----------- ----------- Total nonperforming and restructured loans 13,315 12,211 Other real estate owned and repossessed assets 2,699 2,130 ----------- ----------- Total nonperforming and restructured assets $ 16,014 $ 14,341 =========== =========== Nonperforming and restructured loans to total loans 0.78% 0.73% =========== =========== Nonperforming and restructured assets to total assets 0.58% 0.56% =========== ===========
(7) INTANGIBLE ASSETS The following is a summary of intangible assets, net of accumulated amortization:
December 31, ------------------------- 2001 2000 ----------- ---------- Excess of cost over fair value of assets acquired $ 20,235 $ 22,704 Core deposit intangibles 1,912 2,448 Trademarks 2 4 ----------- ---------- Total $ 22,149 $ 25,156 =========== ==========
7 (8) CAPITAL The Company is subject to risk-based capital guidelines issued by the Board of Governors of the Federal Reserve System. These guidelines are used to evaluate capital adequacy and involve both quantitative and qualitative evaluations of the Company's assets, liabilities, and certain off-balance-sheet items calculated under regulatory practices. Failure to meet the minimum capital requirements can initiate certain mandatory or discretionary actions by the regulatory agencies that could have a direct material effect on the Company's financial statements. The required minimums and the Company's respective ratios are shown below.
Minimum December 31, ------------------------------- Required 2001 2000 ------------ ------------- ------------- Tier 1 capital $ 216,832 $ 195,273 Total capital $ 241,862 $ 217,708 Risk-adjusted assets $ 1,955,789 $ 1,741,664 Leverage ratio 3.00% 7.93% 7.67% Tier 1 capital ratio 4.00% 11.09% 11.21% Total capital ratio 8.00% 12.37% 12.50%
To be "well capitalized" under federal bank regulatory agency definitions, a depository institution must have a Tier 1 ratio of at least 6%, a combined Tier 1 and Tier 2 ratio of at least 10%, and a leverage ratio of at least 5%. As of December 31, 2001 and 2000, BancFirst was considered to be "well capitalized". There are no conditions or events since the most recent notification of BancFirst's capital category that management believes would change its category. (9) STOCK REPURCHASE PLAN In November 1999, the Company adopted a new Stock Repurchase Program (the "SRP") authorizing management to repurchase up to 300,000 shares of the Company's common stock. In May 2001, the SRP was amended to increase the shares authorized to be repurchased by 277,916 shares. The SRP may be used as a means to increase earnings per share and return on equity, to purchase treasury stock for the exercise of stock options or for distributions under the Deferred Stock Compensation Plan, to provide liquidity for optionees to dispose of stock from exercises of their stock options, and to provide liquidity for shareholders wishing to sell their stock. The timing, price and amount of stock repurchases under the SRP may be determined by management and must be approved by the Company's Executive Committee. At December 31, 2001 there were 294,235 shares remaining that could be repurchased under the SRP. Below is a summary of the shares repurchased under the program.
Three Months Ended Year Ended December 31, December 31, ------------------------ ------------------------ 2001 2000 2001 2000 ---------- ---------- ---------- ---------- Number of shares repurchased -- 36,945 119,519 108,379 Average price of shares repurchased $ -- $ 36.77 $ 39.34 $ 30.99
(10) COMPREHENSIVE INCOME The only component of comprehensive income reported by the Company is the unrealized gain or loss on securities available for sale. The amount of this unrealized gain or loss, net of tax, has been presented in the statement of income for each period as a component of other comprehensive income. Below is a summary of the tax effects of this unrealized gain or loss.
Three Months Ended Year Ended December 31, December 31, ------------------------ ------------------------ 2001 2000 2001 2000 ---------- ---------- ---------- ---------- Unrealized gain (loss) during the period: Before-tax amount $ (3,061) $ 5,695 $ 10,559 $ 8,039 Tax (expense) benefit 1,038 (2,040) (2,899) (3,000) ----------- ---------- ---------- ---------- Net-of-tax amount $ (2,023) $ 3,655 $ 7,660 $ 5,038 =========== ========== ========== ==========
8 The amount of unrealized gain or loss included in accumulated other comprehensive income is summarized below.
Three Months Ended Year Ended December 31, December 31, ------------------------ ------------------------ 2001 2000 2001 2000 ---------- ---------- ---------- ---------- Unrealized gain (loss) on securities: Beginning balance $ 11,213 $ (2,125) $ 1,530 $ (3,508) Current period change (2,023) 3,655 7,660 5,038 ---------- ---------- --------- --------- Ending balance $ 9,190 $ 1,530 $ 9,190 $ 1,530 ========== ========== ========= =========
(11) NET INCOME PER COMMON SHARE Basic and diluted net income per common share are calculated as follows:
Income Shares Per Share (Numerator) (Denominator) Amount ------------- --------------- ----------- Three Months Ended December 31, 2001 ------------------------------------ Basic Income available to common stockholders $ 6,895 8,254,346 $ 0.84 =========== Effect of stock options -- 70,233 ------------- -------------- Diluted Income available to common stockholders plus assumed exercises of stock options $ 6,895 8,324,579 $ 0.83 ============= ============== =========== Three Months Ended December 31, 2000 ------------------------------------ Basic Income available to common stockholders $ 6,720 8,327,727 $ 0.81 =========== Effect of stock options -- 97,940 -------------- ----------------- Diluted Income available to common stockholders plus assumed exercises of stock options $ 6,720 8,425,667 $ 0.80 ============= ============== =========== Year Ended December 31, 2001 ---------------------------- Basic Income available to common stockholders $ 27,961 8,274,486 $ 3.38 =========== Effect of stock options -- 96,584 -------------- ----------------- Diluted Income available to common stockholders plus assumed exercises of stock options $ 27,961 8,371,070 $ 3.34 ============= ============== =========== Year Ended December 31, 2000 ---------------------------- Basic Income available to common stockholders $ 26,217 8,147,690 $ 3.22 =========== Effect of stock options -- 76,484 -------------- ----------------- Diluted Income available to common stockholders plus assumed exercises of stock options $ 26,217 8,224,174 $ 3.19 ============= ============== ===========
9 Below is the number and average exercise prices of options that were excluded from the computation of diluted net income per share for each period because the options' exercise prices were greater than the average market price of the common shares. Average Exercise Shares Price ------------- ------------- Three Months Ended December 31, 2001 73,000 $ 38.90 Three Months Ended December 31, 2000 10,000 $ 40.00 Year Ended December 31, 2001 20,192 $ 40.13 Year Ended December 31, 2000 251,540 $ 33.84 10 BANCFIRST CORPORATION SELECTED CONSOLIDATED FINANCIAL DATA (Unaudited) (Dollars in thousands, except per share data)
Three Months Ended Year Ended December 31, December 31, ----------------------------------- ----------------------------------- 2001 2000 2001 2000 ----------------- ----------------- ----------------- ----------------- Per Common Share Data Net income - basic $ 0.84 $ 0.81 $ 3.38 $ 3.22 Net income - diluted 0.83 0.80 3.34 3.19 Cash net income - diluted 0.91 0.90 3.66 3.54 Cash dividends 0.18 0.18 0.72 0.66 Performance Data Return on average assets 1.02% 1.08% 1.05% 1.10% Return on average stockholders' equity 12.38 13.98 13.32 14.89 Cash dividend payout ratio 21.43 22.22 21.30 20.50 Net interest spread 3.61 3.78 3.57 3.94 Net interest margin 4.35 4.77 4.44 4.84 Efficiency ratio 68.59 68.39 68.12 66.34
December 31, ----------------------------------- 2001 2000 ----------------- ----------------- Balance Sheet Data Book value per share $ 27.02 $ 23.65 Tangible book value per share 24.34 20.63 Average loans to deposits (year-to-date) 72.12% 73.07% Average earning assets to total assets (year-to-date) 90.11 90.11 Average stockholders' equity to average assets (year-to-date) 7.86 7.38 Asset Quality Ratios Nonperforming and restructured loans to total loans 0.78% 0.73% Nonperforming and restructured assets to total assets 0.58 0.56 Allowance for loan losses to total loans 1.43 1.52 Allowance for loan losses to nonperforming and restructured loans 184.24 207.85
11 BANCFIRST CORPORATION CONSOLIDATED AVERAGE BALANCE SHEETS AND INTEREST MARGIN ANALYSES (Unaudited) Taxable Equivalent Basis (Dollars in thousands)
Three Months Ended December 31, --------------------------------------------------------------- 2001 2000 ------------------------------ ------------------------------ Interest Average Interest Average Average Income/ Yield/ Average Income/ Yield/ Balance Expense Rate Balance Expense Rate ----------- -------- --------- ---------- --------- --------- ASSETS Earning assets: Loans (1) $1,700,998 $33,339 7.78% $1,631,683 $39,091 9.50% Securities - taxable 506,967 7,031 5.50 505,566 8,087 6.35 Securities - tax exempt 48,280 806 6.62 54,589 917 6.67 Federal funds sold 162,777 891 2.17 41,017 665 6.43 ---------- -------- ---------- --------- Total earning assets 2,419,022 42,067 6.90 2,32,855 48,760 8.66 ---------- -------- ---------- --------- Nonearning assets: Cash and due from banks 139,439 125,700 Interest receivable and other assets 143,238 135,689 Allowance for loan losses (24,871) (24,764) ---------- ---------- Total nonearning assets 257,806 236,625 ---------- ---------- Total assets $2,676,828 $2,469,480 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Interest-bearing liabilities: Transaction deposits $ 348,663 947 1.08% $ 337,207 1,872 2.20% Savings deposits 456,705 2,400 2.08 421,100 4,486 4.23 Time deposits 983,378 11,004 4.44 917,669 14,054 6.08 Short-term borrowings 38,843 189 1.93 34,180 457 5.30 Long-term borrowings 24,533 391 6.32 27,584 446 6.41 9.65% Capital Securities 25,000 612 9.71 25,000 612 9.71 ---------- -------- ---------- --------- Total interest-bearing liabilities 1,877,122 15,543 3.29 1,780,671 21,927 4.89 ---------- -------- ---------- --------- Interest-free funds: Noninterest-bearing deposits 543,924 482,957 Interest payable and other 34,785 15,110 liabilities Stockholders' equity 220,997 190,742 ---------- ---------- Total interest-free funds 799,706 688,809 ---------- ---------- Total liabilities and stockholders' equity $2,676,828 $2,469,480 ========== ========== Net interest income $26,524 $26,833 ======= ========= Net interest spread 3.61% 3.78% ======== ======== Net interest margin 4.35% 4.77% ======== ========
(1) Nonaccrual loans are included in the average loan balances and any interest on such nonaccrual loans is recognized on a cash basis. 12 BANCFIRST CORPORATION CONSOLIDATED AVERAGE BALANCE SHEETS AND INTEREST MARGIN ANALYSES (Unaudited) Taxable Equivalent Basis (Dollars in thousands)
Year Ended December 31, --------------------------------------------------------------- 2001 2000 ------------------------------ ------------------------------ Interest Average Interest Average Average Income/ Yield/ Average Income/ Yield/ Balance Expense Rate Balance Expense Rate ----------- -------- --------- ---------- --------- --------- ASSETS Earning assets: Loans (1) $1,684,460 $144,928 8.60% $1,542,795 $145,913 9.46% Securities - taxable 500,820 29,513 5.89 527,241 33,018 6.26 Securities - tax exempt 50,126 3,420 6.82 50,869 3,386 6.66 Federal funds sold 172,605 6,657 3.86 29,649 1,814 6.10 ----------- -------- ---------- --------- Total earning assets 2,408,011 184,518 7.66 2,150,554 184,131 8.56 ----------- -------- ---------- --------- Nonearning assets: Cash and due from banks 144,320 129,212 Interest receivable and other assets 145,159 130,707 Allowance for loan losses (25,143) (23,929) ---------- ---------- Total nonearning assets 264,336 235,980 ---------- ---------- Total assets $2,672,347 $2,386,534 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Interest-bearing liabilities: Transaction deposits $ 349,613 5,777 1.65% $ 351,559 7,855 2.23% Savings deposits 451,156 13,514 3.00 406,909 16,398 4.03 Time deposits 1,006,792 52,718 5.24 890,944 49,721 5.58 Short-term borrowings 41,817 1,632 3.90 31,712 1,898 5.99 Long-term borrowings 25,638 1,623 6.33 26,903 1,735 6.45 9.65% Capital Securities 25,000 2,447 9.79 25,000 2,447 9.79 ----------- -------- ---------- --------- Total interest-bearing liabilities 1,900,016 77,711 4.09 1,733,027 80,054 4.62 ----------- -------- ---------- --------- Interest-free funds: Noninterest bearing deposits 528,186 461,870 Interest payable and other liabilities 34,219 15,584 Stockholders' equity 209,926 176,053 ----------- ---------- Total interest-free funds 772,331 653,507 ----------- ---------- Total liabilities and stockholders' equity $ 2,672,347 $2,386,534 =========== ========== Net interest income $106,807 $103,520 ======== ======== Net interest spread 3.57% 3.94% ========= ========= Net interest margin 4.44% 4.84% ========= =========
(1) Nonaccrual loans are included in the average loan balances and any interest on such nonaccrual loans is recognized on a cash basis. 13 SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. BANCFIRST CORPORATION --------------------- (Registrant) Date February 28, 2002 /s/ Randy P. Foraker ----------------- ------------------------- (Signature) Randy P. Foraker Senior Vice President and Controller; Assistant Secretary/Treasurer (Principal Accounting Officer) 14