BancFirst (BANF) 8-K Bancfirst Corporation Reports First Quarter Earnings Exceeding Analyst Estimates

BancFirst Corporation

101 NORTH BROADWAY

OKLAHOMA CITY, OKLAHOMA 73102

PRESS RELEASE

For Immediate Release: Tuesday, April 21, 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 FIRST QUARTER EARNINGS EXCEEDING ANALYST ESTIMATES

BancFirst Corporation (NASDAQ GSM: BANF) reported net income of $7.1 million or $0.46 diluted earnings per share for the first quarter of 2009.  These results compare to $11.6 million or $0.74 diluted earnings per share a year ago which included a $1.2 million after-tax gain related to the Visa initial public offering.  The results exceed the analyst consensus estimate of $0.39 diluted earnings per share for the quarter.

For the quarter, the Company’s net interest income was $31.8 million compared to $35.4 million for the same quarter in 2008.  The Company’s net interest margin was 3.69% vs. 4.24% a year ago.  The decrease in the net interest margin resulted from the reduction in interest rates by the Federal Reserve Bank to historically low levels in the latter part of 2008.  The loan loss provision was $3.4 million compared to $1.8 million for the same period a year ago.  The increase in the loan loss provision was due to a small number of specific credits and the overall slowdown in the economy.  Nonperforming loans equaled 0.81% of total assets up slightly from 0.72% at December 31, 2008, while net charge-offs of 0.13% were virtually the same as the first quarter of 2008.  Noninterest income was $16.6 million up $1.2 million over core noninterest income for the same period in 2008.  Last year’s noninterest income included a one-time pretax gain of $1.8 million related to the Visa initial public offering.  The increase in core noninterest income was due to commercial deposit fees and treasury and cash management services.  Noninterest expenses for the quarter were $34.5 million, an increase of $1.6 million over the first quarter of 2008.  The increase is due primarily to higher FDIC premiums and other operating expenses.

At March 31, 2009, the Company’s total assets were $4.0 billion, an increase of $172 million or 4.5% over the first quarter of 2008.  Loans were $2.8 billion which were up $308 million or 12.3% over March 31, 2008.  Deposits grew $169 million to $3.5 billion from a year ago.  The Company’s equity capital was solid at $416 million or 10.5% of total assets at quarter end. BancFirst did not accept funds from the U.S. Treasury’s Capital Purchase Program.

David Rainbolt, CEO of BancFirst, said, “In light of the struggling economy and extraordinarily low interest rates, I have to say our first quarter performance was acceptable.  Non-performing loans are still under 1% and very manageable.”

The Company was recognized as one of America’s Best Banks by Bank Director Magazine.  The publication ranks publicly traded financial institutions by profitability, capital adequacy and asset quality.  BancFirst Corporation was ranked 11th among the largest publicly traded banks and thrifts nationwide.

BancFirst Corporation is an Oklahoma based financial service 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.

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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					$	31,753
Provision for loan losses		3,365						3,365
Securities transactions		339						339
Total noninterest income		16,622						16,622
Salaries and employee benefits		20,117						20,117
Total noninterest expense		34,529						34,529
Net income		7,125						7,125
Per Common Share Data:
Net income-basic		0.47						0.47
Net income-diluted		0.46						0.46
Cash dividends declared		0.22						0.22
Common shares outstanding		15,291,641						15,291,641
Average common shares outstanding -
Basic		15,291,636						15,291,636
Diluted		15,579,090						15,579,090
Performance Ratios:
Return on average assets		0.75	%					0.75	%
Return on average equity		6.92						6.92
Net interest margin		3.68						3.68
Efficiency ratio		71.38						71.38

	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

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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
Total loans		2,808,499
Allowance for loan losses		(36,765	)
Securities		439,220
Deposits		3,471,518
Stockholders' equity		416,381
Book value per common share		27.23
Tangible book value per common share		24.51
Balance Sheet Ratios:
Average loans to deposits		83.29	%
Average earning assets to total assets		91.51
Average stockholders' equity to average assets		10.85
Asset Quality Data:
Past due loans	$	867
Nonaccrual loans		25,255
Restructured loans		353
Total nonperforming and restructured loans		26,475
Other real estate owned and repossessed assets		5,576
Total nonperforming and restructured assets		32,051
Nonperforming and restructured loans to total loans		0.94	%
Nonperforming and restructured assets to total assets		0.81
Allowance to total loans		1.31
Allowance to nonperforming and restructured loans		138.87
Net charge-offs to average loans		0.13

	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

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BancFirst Corporation

Consolidated Average Balance Sheets

And Interest Margin Analysis

Taxable Equivalent Basis

(Dollars in thousands - Unaudited)

	Three Months Ended
	March 31, 2009
				Interest		Average
	Average			Income/		Yield/
	Balance			Expense		Rate
ASSETS
Earning assets:
Loans	$	2,801,385		$	38,344		5.55	%
Securities – taxable		408,908			3,626		3.60
Securities - tax exempt		41,518			586		5.72
Interest bearing deposits with banks		270,854			359		0.54
Total earning assets		3,522,665			42,915		4.94
Nonearning assets:
Cash and due from banks		127,832
Interest receivable and other assets		233,479
Allowance for loan losses		(34,550	)
Total nonearning assets		326,761
Total assets	$	3,849,426
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing liabilities:
Transaction deposits	$	356,831		$	226		0.26	%
Savings deposits		1,102,520			4,599		1.69
Time deposits		849,815			5,555		2.65
Short-term borrowings		8,714			10		0.47
Junior subordinated debentures		26,804			491		7.43
Total interest-bearing liabilities		2,344,684			10,881		1.88
Interest-free funds:
Noninterest bearing deposits		1,054,079
Interest payable and other liabilities		32,860
Stockholders’ equity		417,803
Total interest free-funds		1,504,742
Total liabilities and stockholders’ equity	$	3,849,426
Net interest income				$	32,034
Net interest spread							3.06	%
Net interest margin							3.69	%

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