BancFirst (BANF) 8-K Bancfirst Corporation Reports Third Quarter Earnings

BancFirstCorporation

101 NORTH BROADWAY

OKLAHOMA CITY, OKLAHOMA 73102

PRESS RELEASE

For Immediate Release: Thursday, October 18, 2007

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 $16.9 million or $1.06 diluted earnings per share for the third quarter of 2007, representing an increase of 33.0% over the $12.7 million or $0.79 diluted earnings per share for the same quarter a year ago. Net income for the first nine months of 2007 was $41.5 million or $2.61 diluted earnings per share versus $35.8 million or $2.23 diluted earnings per share for the same period in 2006. The quarterly results included several one-time items that contributed to the jump in earnings. Taken together, these transactions increased net income by $5.9 million or $0.36 diluted earnings per share for the quarter. The year-to-date earnings figures also included a one-time expense of $1.9 million in the first quarter of 2007 for the redemption of the Company’s 9.65% trust preferred securities.

Net interest income for the third quarter was $37.0 million, $564,000 above the third quarter of the prior year. The Company’s net interest margin was 4.55% during the quarter compared to 4.77% a year ago. The decrease in the net interest margin was due to higher rates on deposits relative to rates on earning assets. The loan loss provision totaled $2.2 million compared to $315,000 in the third quarter of 2006 as a result of growth in loans combined with identified weaknesses in certain credits. Nonperforming loans equaled 0.46% of assets, unchanged from a year ago, and net charge-offs represented 0.09% of loans, both remaining at relatively low levels. Noninterest income of $26.8 million was up $11.3 million over the same quarter a year ago. Included in this quarter’s noninterest income was a one-time gain of $7.8 million on the sale of an investment and a $3.1 million recovery on an insurance claim that was fully expensed in 2005. Noninterest expense included a one-time $1 million donation to the Company’s charitable foundation and approximately $800,000 of expenses related to the investment gain. Recurring noninterest expenses were up approximately $600,000 due to the Company’s branch expansion program.

At September 30, 2007 the Company’s total assets were $3.5 billion, an increase of $122 million or 3.6% over September 30, 2006. Loans at quarter-end totaled $2.4 billion, up 2.9% from $2.3 billion a year ago while deposits were $3.1 billion, representing an increase of $153 million. Equity capital totaled $359 million which equaled 10.1% of total assets.

In September, the Company concluded its modified Dutch auction tender offer and purchased 539,453 shares of its common stock at a price per share of $45.00 per share, including all “odd lots” properly tendered and not withdrawn. These shares represented approximately 3.4% of BancFirst Corporation’s outstanding shares.

At its meeting in September 2007, the Company’s Board of Directors adopted an increase of 366,948 common shares in its Stock Repurchase Program. This amendment to the Plan, originally adopted in November 1999, restored the number of shares to the original amount of 600,000 shares.

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 86 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.

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BancFirst Corporation

Summary Financial Information

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

	2007
											Year-
	Q1			Q2			Q3			Q4	To-Date
Income Statement Data:
Net interest income	$	36,374		$	37,437		$	36,969			$	110,780
Provision for loan losses		(31	)		132			2,248				2,349
Securities transactions		227			339			7,723				8,289
Total noninterest income		13,882			15,235			26,790				55,907
Salaries and employee benefits		18,790			18,937			19,513				57,240
Total noninterest expense		33,421			31,618			35,167				100,206
Net income		11,123			13,402			16,944				41,469
Per Common Share Data:
Net income-basic		0.71			0.85			1.11				2.73
Net income-diluted		0.69			0.83			1.06				2.61
Cash dividends declared		0.18			0.18			0.20				0.56
Common shares outstanding		15,721,936			15,724,536			15,201,459				15,201,459
Average common shares outstanding -
Basic		15,750,333			15,723,483			15,723,483				15,471,124
Diluted		16,113,434			16,056,768			16,054,215				15,813,722
Performance Ratios:
Return on average assets		1.31	%		1.51	%		1.88	%			1.57	%
Return on average equity		12.83			14.93			18.14				15.37
Net interest margin		4.75			4.68			4.55				4.65
Efficiency ratio		66.50			60.03			55.16				60.12

	2006
													Year-
	Q1			Q2			Q3			Q4			To-Date
Income Statement Data:
Net interest income	$	34,601		$	35,753			36,404			36,930		$	143,688
Provision for loan losses		681			917			315			(123	)		1,790
Securities transactions		--			139			246			141			526
Total noninterest income		13,409			14,732			15,501			14,782			58,424
Salaries and employee benefits		17,618			17,346			17,741			17,631			70,336
Total noninterest expense		30,292			30,826			31,609			31,830			124,557
Net income		10,881			12,209			12,740			13,522			49,352
Per Common Share Data:
Net income-basic		0.69			0.78			0.81			0.86			3.13
Net income-diluted		0.68			0.76			0.79			0.84			3.07
Cash dividends declared		0.16			0.16			0.18			0.18			0.68
Common shares outstanding		15,687,840			15,716,195			15,742,171			15,764,310			15,764,310
Average common shares outstanding -
Basic		15,666,676			15,702,060			15,732,307			15,751,044			15,713,306
Diluted		16,045,822			16,080,423			16,112,809			16,149,063			16,094,844
Performance Ratios:
Return on average assets		1.33	%		1.46	%		1.50	%		1.55	%		1.46	%
Return on average equity		14.03			15.49			15.44			15.38			15.10
Net interest margin		4.77			4.78			4.77			4.71			4.75
Efficiency ratio		63.09			61.06			60.90			61.55			61.63

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BancFirst Corporation

Summary Financial Information

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

	2007
	Q1			Q2			Q3			Q4
Balance Sheet Data:
Total assets	$	3,521,686		$	3,601,866		$	3,546,338
Total loans		2,336,028			2,345,838			2,399,982
Allowance for loan losses		(27,493	)		(27,568	)		(28,828	)
Securities		430,765			459,271			464,534
Deposits		3,069,206			3,151,553			3,119,775
Stockholders' equity		355,478			364,547			358,871
Book value per common share		22.61			23.18			23.61
Tangible book value per common share		20.09			20.46			20.80
Balance Sheet Ratios:
Average loans to deposits		77.50	%		75.02	%		75.51	%
Average earning assets to total assets		90.77			90.74			90.89
Average stockholders' equity to average assets		10.18			10.11			10.35
Asset Quality Data:
Past due loans	$	1,688		$	1,276		$	1,022
Nonaccrual loans		9,909			13,372			13,146
Restructured loans		792			912			989
Total nonperforming and restructured loans		12,389			15,560			15,157
Other real estate owned and repossessed assets		1,233			1,098			1,300
Total nonperforming and restructured assets		13,622			16,658			16,457
Nonperforming and restructured loans to total loans		0.53	%		0.66	%		0.63	%
Nonperforming and restructured assets to total assets		0.39			0.46			0.46
Allowance to total loans		1.18			1.18			1.20
Allowance to nonperforming and restructured loans		221.90			177.18			190.20
Net charge-offs to average loans		0.03			0.01			0.09

	2006
	Q1			Q2			Q3			Q4
Balance Sheet Data:
Total assets	$	3,357,717		$	3,389,689		$	3,424,495			3,419,132
Total loans		2,306,317			2,339,959			2,332,838			2,325,548
Allowance for loan losses		(27,789	)		(28,227	)		(28,988	)		(27,700	)
Securities		428,222			434,696			422,650			432,910
Deposits		2,934,980			2,954,960			2,967,056			2,974,305
Stockholders' equity		310,698			320,430			335,148			348,913
Book value per common share		19.81			20.39			21.29			22.13
Tangible book value per common share		17.35			17.95			18.75			19.61
Balance Sheet Ratios:
Average loans to deposits		80.39	%		79.13	%		79.27	%		78.03	%
Average earning assets to total assets		89.55			90.16			90.36			90.71
Average stockholders' equity to average assets		9.50			9.46			9.70			10.08
Asset Quality Data:
Past due loans	$	1,204		$	612		$	727		$	1,884
Nonaccrual loans		8,238			7,244			8,960			9,371
Restructured loans		720			727			782			715
Total nonperforming and restructured loans		10,162			8,583			10,469			11,970
Other real estate owned and repossessed assets		2,075			2,657			2,548			1,675
Total nonperforming and restructured assets		12,237			11,240			13,017			13,645
Nonperforming and restructured loans to total loans		0.40	%		0.37	%		0.45	%		0.51	%
Nonperforming and restructured assets to total assets		0.36			0.33			0.38			0.40
Allowance to total loans		1.20			1.21			1.24			1.19
Allowance to nonperforming and restructured loans		303.31			328.88			276.91			231.41
Net charge-offs to average loans		0.07			0.08			0.01			0.20

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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, 2007								September 30, 2007
				Interest		Average						Interest		Average
	Average			Income/		Yield/			Average			Income/		Yield/
	Balance			Expense		Rate			Balance			Expense		Rate
ASSETS
Earning assets:
Loans	$	2,.361,844		$	48,123		8.08	%	$	2,344,745		$	142,055		8.10	%
Securities - taxable		425,087			4,660		4.35			405,252			13,748		4.54
Securities - tax exempt		35,743			536		5.95			35,782			1,621		6.06
Federal funds sold		433,114			5,411		4.96			421,949			16,339		5.18
Total earning assets		3,255,788			58,730		7.16			3,207,728			173,763		7.24
Nonearning assets:
Cash and due from banks		136,631								140,912
Interest receivable and other assets		217,360								211,721
Allowance for loan losses		(27,606	)							(27,602	)
Total nonearning assets		326,385								325,031
Total assets	$	3,582,173							$	3,532,759
LIABILITIES AND
STOCKHOLDERS’ EQUITY
Interest-bearing liabilities:
Transaction deposits	$	387,214		$	724		0.74	%	$	401,440		$	2,304		0.77	%
Savings deposits		1,076,400			10,681		3.94			1,033,857			30,177		3.90
Time deposits		790,873			9,186		4.61			780,412			26,608		4.56
Short-term borrowings		30,829			396		5.10			35,507			1,345		5.06
Long-term borrowings		951			3		1.25			1,034			42		5.43
Junior subordinated debentures		26,805			492		7.28			28,178			1,648		7.82
Total interest-bearing liabilities		2,313,072			21,482		3.68			2,280,428			62,124		3.64
Interest-free funds:
Noninterest bearing deposits		873,531								870,137
Interest payable and other liabilities		24,980								21,413
Stockholders’ equity		370,590								360,781
Total interest free-funds		1,269,101								1,252,331
Total liabilities and stockholders’ equity	$	3,582,173							$	3,532,759
Net interest income				$	37,248							$	111,639
Net interest spread							3.48	%							3.60	%
Net interest margin							4.55	%							4.65	%

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