EX-99.1 2 v119993_ex99-1.htm

BancFirst Corporation
101 NORTH BROADWAY
OKLAHOMA CITY, OKLAHOMA 73102

PRESS RELEASE

For Immediate Release: Tuesday, July 15, 2008
For further information call Joe T. Shockley Jr., Chief Financial Officer (405) 270-1003
or David Rainbolt, Chief Executive Officer at (405) 270-1002

BANCFIRST CORPORATION REPORTS SECOND QUARTER EARNINGS 

BancFirst Corporation (NASDAQ GSM:BANF) reported net income of $13.7 million or $0.89 diluted earnings per share for the second quarter of 2008. These results compare to $13.4 million or $0.83 diluted earnings per share for the same period a year ago. Net income for the first six months of 2008 was $25.3 million, or $1.63 diluted earnings per share versus $24.5 million or $1.52 diluted earnings per share for the same period in 2007. As discussed below, the Company recognized a $774,000 after-tax gain related to the sale of an asset and a $3.8 million after-tax gain on the sale of securities during the second quarter of 2008.
 
The Company’s net interest income for the second quarter was $34.8 million compared to $37.4 million for the same period a year ago. The net interest margin was 4.08% compared to 4.68% for the second quarter of 2007. The lower interest rate environment in 2008 compared to the first six months of 2007 driven by Federal Reserve rate cuts has caused the Company’s net interest margin to decline. Total earning assets for the Company averaged $3.4 billion in the second quarter, an increase of $204 million from a year ago. During the quarter, loans increased $108 million and were up $263 million or 11.2% compared to the second quarter in 2007. The loan loss provision for the second quarter was $3.5 million compared to $132,000 in 2007. The loan provision was driven primarily by the identification of a small number of commercial credits that were internally downgraded by management and to a lesser extent from the growth in the loan portfolio. Nonperforming loans were 0.42% of total assets, and net charge-offs represented 0.03% of loans, virtually unchanged from 0.46% and 0.01%, respectively, for the same period in 2007. During the second quarter, the Company completed an $80 million bond swap resulting in a pre-tax securities gain of $6.1 million and also recognized a $1.2 million pre-tax gain on the sale of an asset. Recurring operating noninterest income was $16.0 million compared to $15.2 million for the same period a year ago, an increase of 5.3% due to growth in deposit accounts, and cash management and treasury services. Noninterest expense for the quarter totaled $33.6 million compared to $31.6 million for the same period a year ago. The increase is due to the Company’s overall growth, including expansion of the Company’s insurance agency. The Company’s effective tax rate in the second quarter was 34.5% versus 35.9% a year ago due to additional tax credits realized in 2008.

At June 30, 2008, the Company’s total assets were $3.8 billion, an increase of $240 million or 6.7% over a year ago. At quarter-end, loans totaled $2.6 billion, and deposits were $3.4 billion, up 6.9% from June 30, 2007. The Company’s liquidity remains strong as its average loan to deposit ratio was 77.2% at quarter end and core deposits represented 91.2% of total deposits. The Company had no brokered deposits and less than $100,000 of Federal Home Loan Bank borrowings. Stockholder’s equity was $387 million at June 30, 2008 which was 10.2% of total assets.

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.

 
1
 


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

   
2008
  
                   
Year-
 
   
Q1
 
Q2
 
Q3
 
Q4
 
To-Date
 
Income Statement Data:
                     
Net interest income
  
$
35,387
  
$
34,774
              
$
70,161
  
Provision for loan losses
   
1,780
    
3,539
                
5,319
  
Securities transactions
    
28
    
6,121
                
6,149
  
Total noninterest income
   
17,241
    
23,330
                
40,571
  
Salaries and employee benefits
    
20,189
    
20,366
                
40,555
  
Total noninterest expense
   
32,928
    
33,596
                
66,524
  
Net income
   
11,594
    
13,737
                
25,331
  
Per Common Share Data:
                               
Net income-basic
   
0.76
    
0.91
                
1.67
  
Net income-diluted
   
0.74
    
0.89
                
1.63
  
Cash dividends declared
    
0.20
    
0.20
                
0.40
  
Common shares outstanding
   
15,183,483
    
15,186,632
                
15,186,632
  
Average common shares outstanding -
                               
Basic
    
15,208,049
    
15,185,763
                
15,196,906
  
Diluted
    
15,562,570
    
15,548,687
                
15,555,973
  
Performance Ratios:
                               
Return on average assets
    
1.26
%
  
1.46
%
              
1.36
%
Return on average equity
    
12.24
    
14.14
                
13.21
  
Net interest margin
   
4.24
    
4.08
                
4.16
  
Efficiency ratio
   
62.57
    
57.82
                
60.08
  
                                    
   
2007
                   
Year-
 
   
Q1
 
Q2
 
Q3
 
Q4
 
To-Date
 
Income Statement Data:
                     
Net interest income
  
$
36,374
  
$
37,437
  
$
36,969
  
$
37,506
  
$
148,286
  
Provision for loan losses
   
(31
)
  
132
    
2,248
    
980
    
3,329
  
Securities transactions
    
227
    
339
    
7,723
    
48
    
8,337
  
Total noninterest income
   
13,882
    
15,235
    
26,790
    
15,231
    
71,138
  
Salaries and employee benefits
    
18,790
    
18,937
    
19,513
    
19,574
    
76,814
  
Total noninterest expense
   
33,421
    
31,618
    
35,167
    
34,240
    
134,446
  
Net income
   
11,123
    
13,402
    
16,944
    
11,624
    
53,093
  
Per Common Share Data:
                               
Net income-basic
   
0.71
    
0.85
    
1.08
    
0.76
    
3.41
  
Net income-diluted
   
0.69
    
0.83
    
1.06
    
0.75
    
3.33
  
Cash dividends declared
   
0.18
    
0.18
    
0.20
    
0.20
    
0.76
  
Common shares outstanding
   
15,721,936
    
15,724,536
    
15,201,459
    
15,217,233
    
15,217,233
  
Average common shares outstanding -
                               
Basic
    
15,750,333
    
15,723,483
    
15,620,336
    
15,209,373
    
15,574,521
  
Diluted
    
16,113,434
    
16,056,768
    
15,951,069
    
15,575,630
    
15,944,622
  
Performance Ratios:
                               
Return on average assets
    
1.31
%
  
1.51
%
  
1.88
%
  
1.27
%
  
1.49
%
Return on average equity
   
12.83
    
14.93
    
18.14
    
12.60
    
14.66
  
Net interest margin
   
4.75
    
4.68
    
4.55
    
4.54
    
4.63
  
Efficiency ratio
   
66.50
    
60.03
    
55.16
    
64.93
    
61.27
  
                                 


 
2
 



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

   
2008
  
   
Q1
 
Q2
 
Q3
 
Q4
 
Balance Sheet Data:
                 
Total assets
  
$
3,786,111
  
$
3,842,364
              
Total loans
   
2,500,849
    
2,608,913
              
Allowance for loan losses
   
(30,193
)
  
(33,512
)
            
Securities
   
462,832
    
448,350
              
Deposits
   
3,302,103
    
3,369,912
              
Stockholders' equity
   
386,177
    
387,181
              
Book value per common share
   
25.43
    
25.49
              
Tangible book value per common share
   
22.65
    
22.73
              
Balance Sheet Ratios:
                         
Average loans to deposits
   
76.91
%
  
77.19
%
            
Average earning assets to total assets
   
91.27
    
90.91
              
Average stockholders' equity to average assets
   
10.27
    
10.30
              
 Asset Quality Data:
                         
Past due loans
  
$
643
  
$
2,043
              
Nonaccrual loans
    
11,892
    
11,070
              
Restructured loans
    
864
    
833
              
Total nonperforming and restructured loans
    
13,399
    
13,946
              
Other real estate owned and repossessed assets
    
2,074
    
2,311
              
Total nonperforming and restructured assets
    
15,473
    
16,257
              
 Nonperforming and restructured loans to total loans
    
0.54
%
  
0.53
%
            
Nonperforming and restructured assets to total assets
    
0.41
    
0.42
              
Allowance to total loans
    
1.21
    
1.28
              
Allowance to nonperforming and restructured loans
    
225.34
    
240.30
              
Net charge-offs to average loans
    
0.12
    
0.03
              
   
2007
  
   
Q1
 
Q2
 
Q3
 
Q4
 
Balance Sheet Data:
                 
Total assets
  
$
3,521,686
  
$
3,601,866
  
$
3,546,338
  
$
3,743,006
  
Total loans
   
2,336,028
    
2,345,838
    
2,399,982
    
2,487,099
  
Allowance for loan losses
   
(27,493
)
  
(27,568
)
  
(28,828
)
  
(29,127
)
Securities
   
430,765
    
459,271
    
464,534
    
467,719
  
Deposits
   
3,069,206
    
3,151,553
    
3,119,775
    
3,288,504
  
Stockholders' equity
   
355,478
    
364,547
    
358,871
    
371,962
  
Book value per common share
   
22.61
    
23.18
    
23.61
    
24.44
  
Tangible book value per common share
   
20.09
    
20.46
    
20.80
    
21.66
  
Balance Sheet Ratios:
                         
Average loans to deposits
   
77.50
%
  
75.02
%
  
75.51
%
  
76.21
%
Average earning assets to total assets
   
90.77
    
90.74
    
90.89
    
91.03
  
Average stockholders' equity to average assets
   
10.18
    
10.11
    
10.35
    
10.09
  
 Asset Quality Data:
                         
Past due loans
  
$
1,688
  
$
1,276
  
$
1,022
  
$
823
  
Nonaccrual loans
    
9,909
    
13,372
    
13,146
    
11,568
  
Restructured loans
    
792
    
912
    
989
    
1,121
  
Total nonperforming and restructured loans
    
12,389
    
15,560
    
15,157
    
13,512
  
Other real estate owned and repossessed assets
    
1,233
    
1,098
    
1,300
    
1,568
  
Total nonperforming and restructured assets
    
13,622
    
16,658
    
16,457
    
15,080
  
Nonperforming and restructured loans to total loans
    
0.53
%
  
0.66
%
  
0.63
%
  
0.54
%
Nonperforming and restructured assets to total assets
    
0.39
    
0.46
    
0.46
    
0.40
  
Allowance to total loans
    
1.18
    
1.18
    
1.20
    
1.17
  
Allowance to nonperforming and restructured loans
    
221.90
    
177.18
    
190.20
    
215.57
  
Net charge-offs to average loans
    
0.03
    
0.01
    
0.17
    
0.11
  
 

 
 
3
 
 
 
 

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, 2008
  
June 30, 2008
  
       
Interest
  
Average
     
Interest
  
Average
 
   
Average
  
Income/
  
Yield/
 
Average
  
Income/
  
Yield/
 
   
Balance
  
Expense
  
Rate
 
Balance
  
Expense
  
Rate
 
ASSETS
                          
Earning assets:
                          
Loans
$
2,552,864
        
$
42,587
          
6.69
%
      
$ 2,523,044
$
87,836
          
6.98
%
      
Securities - taxable
  
414,047
4,132
4.00
422,741
8,690
4.12
Securities - tax exempt
  
32,735
491
6.02
33,680
1,013
6.03
Federal funds sold
  
437,327
2,241
2.06
426,529
5,424
2.55
Total earning assets
  
3,436,973
49,451
5.77
3,405,994
102,963
6.06
               
Nonearning assets:
              
Cash and due from banks
  
143,999
    
139,560
    
Interest receivable and other assets
  
230,307
    
223,712
    
Allowance for loan losses
  
(30,740)
    
(30,067)
    
Total nonearning assets
  
343,566
    
333,205
    
Total assets
  
$ 3,780,539
    
$ 3,739,199
    
               
LIABILITIES AND
              
STOCKHOLDERS’ EQUITY
              
Interest-bearing liabilities:
              
Transaction deposits
  
$ 431,579
$ 525
0.49%
$ 420,798
$ 1,167
0.56%
Savings deposits
  
1,098,194
5,696
2.08
1,097,087
13,606
2.49
Time deposits
  
833,248
7,587
3.65
829,040
16,209
3.92
Short-term borrowings
  
23,670
124
2.10
23,657
308
2.61
Long-term borrowings
  
323
2
2.48
423
9
4.27
Junior subordinated debentures
  
26,805
491
7.35
26,672
983
7.39
Total interest-bearing liabilities
  
2,413,819
14,425
2.40
2,397,677
32,282
2.70
               
Interest-free funds:
              
Noninterest bearing deposits
  
944,433
    
927,744
    
Interest payable and other liabilities
  
32,706
    
29,081
    
Stockholders’ equity
  
389,581
    
384,697
    
Total interest free-funds
  
1,366,720
    
1,341,522
    
Total liabilities
and stockholders’ equity
  
$ 3,780,539
    
$ 3,739,199
    
Net interest income
    
$ 35,026
    
$ 70,681
  
Net interest spread
      
3.37%
    
3.36%
Net interest margin
      
4.08%
    
4.16%



 
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