BancFirst 8K Reports Fourth Quarter Earnings | BANF 20 Jan 09

BancFirst Corporation Reports Fourth Quarter Earnings

OKLAHOMA CITY, Jan. 16 /PRNewswire-FirstCall/ -- BancFirst Corporation (Nasdaq: BANF) reported net income of $8.1 million or $0.52 per diluted earnings per share for the fourth quarter and $44.4 million or $2.85 per diluted earnings per share for the year ended December 31, 2008. The results compare to $11.6 million or $0.75 per diluted earnings per share and $53.1 million or $3.33 per diluted earnings per share for the fourth quarter end year ended December 31, 2007, respectively. The 2008 results were impacted by lower net interest margins due to historically low interest rate levels, and higher loan provisions as a result of the slowing economy throughout 2008.

For the fourth quarter of 2008, the Company’s net interest income was $33.7 million, down from $37.5 million in the fourth quarter a year ago. The Company’s net interest margin was 3.85% for the fourth quarter of 2008 compared to 4.54% in the same quarter a year ago. Total earning assets increased to $3.5 billion up from $3.3 billion in the same period in 2007. The Company’s loan loss provision was $3.1 million in the fourth quarter compared to $980,000 in the same period in 2007. The increase in this quarter’s loan loss provision was primarily related to one large nonperforming commercial real estate loan. Loans grew by $27.4 million during the fourth quarter and are up $270.8 million from year end 2007. At December 31, 2008, nonperforming loans equaled 0.72% of total assets up from 0.40% a year ago. Net charge-offs were 0.38% of loans for the fourth quarter and 0.21% for the year 2008, below industry peer levels. Noninterest income totaled $16.0 million for the quarter, an increase of 5.3% over the same period a year ago. The increase is mainly attributable to growth in service charges on deposits, and cash management and treasury services. Noninterest expense for the quarter was $34.2 million, virtually unchanged from the fourth quarter of 2007.

David Rainbolt, BancFirst Corporation CEO stated that “With our capital strength, strong liquidity and overall asset quality, we feel we are well positioned to weather the challenges in 2009. Our goal is to be in position to take advantage of any opportunities that arise in the future.”

At December 31, 2008, total assets of the Company reached $3.9 billion, an increase of $124.2 million over the prior year end. Loans totaled $2.8 billion, which is an increase of 10.9% over December 31, 2007, while deposits increased to $3.4 billion, up $89.1 million or 2.7% over the prior year. The Company’s equity capital was $413.8 million, or 10.7% 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.

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		$	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

	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

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		$	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

	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

BancFirst Corporation

Consolidated Average Balance Sheets

And Interest Margin Analysis

Taxable Equivalent Basis

(Dollars in thousands - Unaudited)

	Three Months Ended								Twelve Months Ended
	December 31, 2008								December 31, 2008
				Interest		Average					Interest		Average
	Average			Income/		Yield/			Average		Income/		Yield/
	Balance			Expense		Rate			Balance		Expense		Rate
ASSETS
Earning assets:
Loans	$	2,749,720		$	41,898		6.05	%	$	2,612,553	$	172,556		6.59	%
Securities – taxable		413,534			3,748		3.60			416,587		16,387		3.92
Securities - tax exempt		42,858			608		5.63			38,000		2,214		5.81
Federal funds sold		292,930			508		0.69			385,825		7,864		2.03
Total earning assets		3,499,042			46,762		5.30			3,452,965		199,021		5.75

Nonearning assets:
Cash and due from banks		127,188					138,002			��
Interest receivable and other assets		226,355					225,879
Allowance for loan losses		(34,125	)				(31,939	)
Total nonearning assets		319,418					331,942
Total assets	$	3,818,460				$	3,784,907

LIABILITIES AND
STOCKHOLDERS’ EQUITY
Interest-bearing liabilities:
Transaction deposits	$	423,594	$	422	0.40	%	$	423,773	$	2,126	0.50	%
Savings deposits		1,094,266		5,571	2.02			1,100,184		24,945	2.26
Time deposits		841,973		6,245	2.94			834,712		29,313	3.50
Short-term borrowings		16,304		46	1.12			21,322		458	2.14
Long-term borrowings		1		--	--			218		9	4.12
Junior subordinated debentures		26,804		491	7.27			26,738		1,966	7.33
Total interest-bearing liabilities		2,402,942		12,775	2.11			2,406,947		58,817	2.44

Interest-free funds:
Noninterest bearing deposits		984,215						955,847
Interest payable and other liabilities		28,332						30,537
Stockholders’ equity		402,971						391,576
Total interest free-funds		1,415,518						1,377,960
Total liabilities and stockholders’ equity	$	3,818,460					$	3,784,907
Net interest income			$	33,987					$	140,204
Net interest spread					3.19	%					3.31	%
Net interest margin					3.85	%					4.05	%

BancFirst (BANF) 8-KBancFirst Corporation Reports Fourth Quarter Earnings