Unassociated Document

BancFirst Corporation

101 NORTH BROADWAY

OKLAHOMA CITY, OKLAHOMA 73102

PRESS RELEASE

For Immediate Release: Tuesday, October 20, 2009

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 THIRD QUARTER EARNINGS

BancFirst Corporation (NASDAQ GSM:BANF) reported net income of $9.4 million of $0.60 per diluted earnings per share for the third quarter of 2009. These results compare to net income of $11.0 million or $0.70 diluted earnings per share for the same period in 2008. Net income for the first nine months of 2009 was $22.8 million or $1.46 per diluted earnings per share compared to $36.3 million or $2.33 per diluted earnings per share for the same period a year ago. Last year’s reported results included several one-time gains that totaled $9.1 million or $5.9 million after-tax.

Net interest income for the third quarter was $33.0 million compared to $35.3 million for the same period in 2008. The Company’s net interest margin for the quarter was 3.27% versus 4.03% a year ago. The lower interest rate environment in 2009 compared to a year ago has caused the Company’s net interest margin to decline. The Company’s loan loss provision for the third quarter was $1.0 million compared to $2.3 million for the same period a year ago. Nonperforming loans at quarter end represented 1.76% of total loans, while net charge-offs year-to-date totaled 0.37% of total loans compared to 0.81% and 0.14%, respectively, for the same period in 2008. Noninterest income was $17.0 million for the quarter compared to $17.8 million a year ago. Cash management revenues were down due to lower investment sweep balances. Noninterest expense of $35.5 million was up 3.4% from the operating expenses a year ago due to higher deposit insurance premiums. The Company’s effective tax rate was 30.5% for the quarter compared to 33.4% a year ago due to additional tax credits.

David Rainbolt, BancFirst Corporation CEO stated, “In light of the current economic environment, earnings for the quarter were respectable. Going forward earnings will likely continue to be somewhat variable as long as the economy is in flux.”

At September 30, 2009 the Company’s total assets were $4.3 billion, an increase of 13% over a year ago. At quarter end, loans were $2.7 billion and deposits totaled $3.8 billion. Deposits increased $471 million or 14% from September 30, 2008. The Company’s liquidity remains strong with an average loan-to-deposit ratio for the quarter of 70.8% and overnight investments of more than $900 million. Additionally, the Company has no brokered deposits and no borrowings from the Federal Home Loan Bank. At quarter end stockholder’s equity was $425.6 million or 9.8% of total assets. The Company’s capital ratios exceed federal “well capitalized” guidelines.

David Rainbolt, BancFirst Corporation CEO observed, “Our strong capital and liquidity positions should enable us to look at expansion opportunities in the next several years.”

The Company recently announced it has entered into an agreement to purchase First Jones Bancorporation and its subsidiary bank, First State Bank, Jones, Oklahoma. First State Bank has $40 million in total assets and equity capital of $4.6 million. The transaction is subject to regulatory approval and is expected to be completed before year end 2009.

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.

BancFirst Corporation

Summary Financial Information

(Dollars in thousands, except per share and share data - Unaudited)

	2009
													Year-
		Q1			Q2			Q3			Q4		To-Date
Income Statement Data:
Net interest income	$	31,753		$	32,546		$	32,952					$	97,251
Provision for loan losses		3,365			4,851			998						9,214
Securities transactions		339			(37	)		20						322
Total noninterest income		16,622			17,043			17,039						50,704
Salaries and employee benefits		20,117			19,896			19,938						59,951
Total noninterest expense		34,529			35,218			35,481						105,228
Net income		7,125			6,260			9,390						22,775
Per Common Share Data:
Net income-basic		0.47			0.41			0.61						1.49
Net income-diluted		0.46			0.40			0.60						1.46
Cash dividends declared		0.22			0.22			0.23						0.67
Common shares outstanding		15,291,641			15,301,641			15,302,891						15,302,891
Average common shares outstanding -
Basic		15,291,636			15,298,075			15,302,199						15,297,342
Diluted		15,579,090			15,604,279			15,585,955						15,591,151
Performance Ratios:
Return on average assets		0.75	%		0.61	%		0.86	%					0.74	%
Return on average equity		6.92			5.95			8.77						7.22
Net interest margin		3.69			3.44			3.27						3.45
Efficiency ratio		71.38			71.02			70.97						71.12

	2008
													Year-
		Q1			Q2			Q3			Q4		To-Date
Income Statement Data:
Net interest income	$	35,387		$	34,774		$	35,251		$	33,695		$	139,107
Provision for loan losses		1,780			3,539			2,270			3,087			10,676
Securities transactions		28			6,121			776			13			6,938
Total noninterest income		17,241			23,330			17,784			16,030			74,385
Salaries and employee benefits		20,189			20,366			20,038			19,293			79,886
Total noninterest expense		32,928			33,596			34,307			34,175			135,006
Net income		11,594			13,737			10,958			8,069			44,358
Per Common Share Data:
Net income-basic		0.76			0.91			0.72			0.53			2.91
Net income-diluted		0.74			0.89			0.70			0.52			2.85
Cash dividends declared		0.20			0.20			0.22			0.22			0.84
Common shares outstanding		15,183,483			15,186,632			15,242,061			15,281,141			15,281,141
Average common shares outstanding -
Basic		15,208,049			15,185,763			15,217,546			15,263,507			15,218,835
Diluted		15,562,570			15,548,687			15,589,215			15,606,950			15,578,463
Performance Ratios:
Return on average assets		1.26	%		1.46	%		1.13	%		0.84	%		1.17	%
Return on average equity		12.24			14.14			11.04			7.94			11.30
Net interest margin		4.24			4.08			4.03			3.85			4.05
Efficiency ratio		62.57			57.82			64.69			68.73			63.24

BancFirst Corporation

Summary Financial Information

(Dollars in thousands, except per share data - Unaudited)

	2009
		Q1			Q2			Q3			Q4
Balance Sheet Data:
Total assets	$	3,958,155		$	4,269,325		$	4,322,103
Total loans		2,808,499			2,738,238			2,713,169
Allowance for loan losses		(36,765	)		(39,334	)		(36,016	)
Securities		439,220			417,738			391,627
Deposits		3,471,518			3,782,822			3,831,823
Stockholders' equity		416,381			419,202			425,638
Book value per common share		27.23			27.40			27.81
Tangible book value per common share		24.51			24.69			25.12
Balance Sheet Ratios:
Average loans to deposits		83.29	%		79.67	%		70.39	%
Average earning assets to total assets		91.51			92.08			92.97
Average stockholders' equity to average assets		10.85			10.52			9.79
Asset Quality Data:
Past due loans	$	867		$	21,530		$	9,941
Nonaccrual loans		25,255			24,186			37,319
Restructured loans		353			1,115			561
Total nonperforming and restructured loans		26,475			46,831			47,821
Other real estate owned and repossessed assets		5,576			11,543			10,587
Total nonperforming and restructured assets		32,051			58,374			58,408
Nonperforming and restructured loans to total loans		0.94	%		1.68	%		1.76	%
Nonperforming and restructured assets to total assets		0.81			1.35			1.35
Allowance to total loans		1.31			1.44			1.33
Allowance to nonperforming and restructured loans		138.87			83.99			75.31
Net charge-offs to average loans		0.13			0.33			0.63
	2008
		Q1			Q2			Q3			Q4
Balance Sheet Data:
Total assets	$	3,786,111		$	3,842,364		$	3,825,518		$	3,867,204
Total loans		2,500,849			2,608,913			2,730,409			2,757,854
Allowance for loan losses		(30,193	)		(33,512	)		(33,862	)		(34,290	)
Securities		462,832			448,350			462,595			455,568
Deposits		3,302,103			3,369,912			3,361,233			3,377,608
Stockholders' equity		386,177			387,181			397,648			413,791
Book value per common share		25.43			25.49			26.09			27.08
Tangible book value per common share		22.65			22.73			23.35			24.34
Balance Sheet Ratios:
Average loans to deposits		76.91	%		77.19	%		78.85	%		82.23	%
Average earning assets to total assets		91.27			90.91			91.10			91.63
Average stockholders' equity to average assets		10.27			10.30			10.25			10.55
Asset Quality Data:
Past due loans	$	643		$	2,043		$	892		$	1,346
Nonaccrual loans		11,892			11,070			20,229			21,359
Restructured loans		864			833			940			1,022
Total nonperforming and restructured loans		13,399			13,946			22,061			23,727
Other real estate owned and repossessed assets		2,074			2,311			3,423			3,997
Total nonperforming and restructured assets		15,473			16,257			25,484			27,724
Nonperforming and restructured loans to total loans		0.54	%		0.53	%		0.81	%		0.86	%
Nonperforming and restructured assets to total assets		0.41			0.42			0.67			0.72
Allowance to total loans		1.21			1.28			1.24			1.24
Allowance to nonperforming and restructured loans		225.34			240.30			153.50			144.52
Net charge-offs to average loans		0.12			0.03			0.28			0.38

BancFirst Corporation

Consolidated Average Balance Sheets

And Interest Margin Analysis

Taxable Equivalent Basis

(Dollars in thousands - Unaudited)

	Three Months Ended								Nine Months Ended
	September 30, 2009								September 30, 2009
				Interest		Average						Interest		Average
	Average			Income/		Yield/			Average			Income/		Yield/
	Balance			Expense		Rate			Balance			Expense		Rate
ASSETS
Earning assets:
Loans	$	2,709,421		$	37,783		5.53	%	$	2,765,665		$	114,678		5.54	%
Securities – taxable		363,763			3,267		3.56			387,814			10,357		3.57
Securities - tax exempt		36,102			508		5.58			38,829			1,644		5.66
Interest bearing deposits with banks		921,711			702		0.30			603,363			1,598		0.35
Total earning assets		4,030,997			42,260		4.16			3,795,671			128,277		4.52

Nonearning assets:
Cash and due from banks		107,829								114,888
Interest receivable and other assets		236,238								234,247
Allowance for loan losses		(39,370	)							(36,784	)
Total nonearning assets		304,697								312,351
Total assets	$	4,355,694							$	4,108,022

LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing liabilities:
Transaction deposits	$	375,863		$	352		0.37	%	$	375,011		$	893		0.32	%
Savings deposits		1,291,694			3,419		1.05			1,187,452			12,154		1.37
Time deposits		910,662			4,785		2.08			888,159			15,675		2.36
Short-term borrowings		634			-		-			3,483			11		0.42
Junior subordinated debentures		26,804			491		7.27			26,804			1,474		7.35
Total interest-bearing liabilities		2,605,657			9,047		1.38			2,480,909			30,207		1.63

Interest-free funds:
Noninterest bearing deposits		1,271,062								1,172,024
Interest payable and other liabilities		34,401								33,616
Stockholders’ equity		424,574								421,473
Total interest free-funds		1,730,037								1,627,113
Total liabilities and stockholders’ equity	$	4,335,694							$	4,108,022
Net interest income				$	33,213							$	98,070
Net interest spread							2.78	%							2.89	%
Net interest margin							3.27	%							3.45	%