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

BancFirst Corporation

101 NORTH BROADWAY

OKLAHOMA CITY, OKLAHOMA 73102

PRESS RELEASE

For Immediate Release: Tuesday, July 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 SECOND QUARTER EARNINGS

BancFirst Corporation (NASDAQ GSM: BANF) reported net income of $6.3 million or $0.40 diluted earnings per share for the second quarter of 2009.  The quarter’s results include a $1.3 million after tax expense for the FDIC Special Assessment.  These results compare to core earnings a year ago of $9.2 million or $0.59 diluted earnings per share.  Last year’s reported second quarter results of $13.7 million or $0.89 diluted earnings per share included one-time gains of $4.5 million, after tax.  For the six months ended June 30, 2009, net income was $13.4 million or $0.86 diluted earnings per share compared to $25.3 million or $1.63 diluted earnings per share.  The results for the six months of 2008 included one-time gains of $5.7 million, after tax.

For the second quarter of 2009, net interest income was $32.5 million compared to $34.8 million for the second quarter of 2008.  While the Company’s earning assets have grown to $4.0 billion at June 30, an increase of $500 million from a year ago, the historically low interest rate environment and modest loan demand has caused the net interest margin to compress.  The Company’s net interest margin for the second quarter was 3.44% down from 4.08% a year ago.  The loan loss provision for the quarter was $4.9 million which compares to $3.5 million for the same period in 2008.  This quarter’s provision was driven primarily by a small number of commercial credits that exceeded 90 days past due.  Although it is possible a majority of the loans in question could be rehabilitated to performing status, the provisions were made consistent with the Company’s loan reserve methodology.  Nonperforming loans were 1.35% of total assets, up from 0.85% in the previous quarter of 2009.  Net charge-offs for the quarter were 0.33% of loans, which compares to 0.13% in the previous quarter.  Noninterest income totaled $17.0 million for the second quarter which compares to core noninterest income a year ago of $16.0 million, excluding the gains in 2008 previously mentioned.  The increase in noninterest income was due to commercial deposit fees and increases in income from the sale of mortgage loans and student loans.  Noninterest expense for the quarter totaled $35.2 million, which included the FDIC Special Assessment of $1.9 million and higher deposit insurance premiums of $1.1 million.  Apart from the special assessment and higher premiums, noninterest expense was down 3.9% compared to the previous year.

At June 30, 2009, the Company’s total assets were $4.3 billion, an increase of $427 million or 11.1% over a year ago.  Loans totaled $2.7 billion, up $129 million over June 30, 2008.  Deposits increased $412 million to $3.8 billion, an increase of 12.2% over a year ago.  The Company’s equity capital was $419 million or 9.8% of total assets at quarter end.  BancFirst did not request or accept funds from the U.S. Treasury’s Capital Purchase Program.

David Rainbolt, CEO of BancFirst, said, “Our capital is strong and our liquidity is exceptional with overnight funds of $800 million at quarter end.  We believe BancFirst is positioned to take advantage of any opportunities that arise, from new loan relationships to potential bank acquisitions.”

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.

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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			32,546								$	64,299
Provision for loan losses		3,365			4,851									8,216
Securities transactions		339			(37	)								302
Total noninterest income		16,622			17,043									33,665
Salaries and employee benefits		20,117			19,896									40,013
Total noninterest expense		34,529			35,218									69,747
Net income		7,125			6,260									13,385
Per Common Share Data:
Net income-basic		0.47			0.41									0.88
Net income-diluted		0.46			0.40									0.86
Cash dividends declared		0.22			0.22									0.44
Common shares outstanding		15,291,641			15,301,641									15,301,641
Average common shares outstanding -
Basic		15,291,636			15,298,075									15,294,873
Diluted		15,579,090			15,604,279									15,592,400
Performance Ratios:
Return on average assets		0.75	%		0.66	%								0.68	%
Return on average equity		6.92			6.08									6.43
Net interest margin		3.68			3.44									3.56
Efficiency ratio		71.38			71.02									71.20
	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			4,269,325
Total loans		2,808,499			2,738,238
Allowance for loan losses		(36,765	)		(39,334	)
Securities		439,220			417,738
Deposits		3,471,518			3,782,822
Stockholders' equity		416,381			419,202
Book value per common share		27.23			27.40
Tangible book value per common share		24.51			24.69
Balance Sheet Ratios:
Average loans to deposits		83.29	%		76.30	%
Average earning assets to total assets		91.51			92.60
Average stockholders' equity to average assets		10.85			10.21
Asset Quality Data:
Past due loans	$	867			21,530
Nonaccrual loans		25,255			24,186
Restructured loans		353			1,115
Total nonperforming and restructured loans		26,475			46,831
Other real estate owned and repossessed assets		5,576			11,543
Total nonperforming and restructured assets		32,051			58,374
Nonperforming and restructured loans to total loans		0.94	%		1.71	%
Nonperforming and restructured assets to total assets		0.81			1.37
Allowance to total loans		1.31			1.44
Allowance to nonperforming and restructured loans		138.87			83.99
Net charge-offs to average loans		0.13			0.33
	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								Six Months Ended
	June 30, 2009								June 30, 2009
				Interest		Average						Interest		Average
	Average			Income/		Yield/			Average			Income/		Yield/
	Balance			Expense		Rate			Balance			Expense		Rate
ASSETS
Earning assets:
Loans	$	2,787,199		$	38,551		5.55	%	$	2,794,253		$	76,895		5.55	%
Securities – taxable		391,268			3,464		3.55			400,039			7,090		3.57
Securities - tax exempt		38,926			549		5.66			40,215			1,136		5.70
Interest bearing deposits with banks		610,372			537		0.35			441,551			897		0.41
Total earning assets		3,827,765			43,101		4.52			3,676,058			86,018		4.72
Nonearning assets:
Cash and due from banks		109,223								118,476
Interest receivable and other assets		232,990								223,234
Allowance for loan losses		(36,376	)							(35,469	)
Total nonearning assets		305,837								316,241
Total assets	$	4,133,602							$	3,992,299
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing liabilities:
Transaction deposits	$	392,130		$	315		0.32	%	$	374,578		$	541		0.29	%
Savings deposits		1,166,063			4,136		1.42			1,134,467			8,735		1.55
Time deposits		903,331			5,336		2.37			876,721			10,890		2.50
Short-term borrowings		1,190			1		0.34			4,931			11		0.45
Long-term borrowings		-			-		-			-			-		-
Junior subordinated debentures		26,804			491		7.35			26,804			983		7.40
Total interest-bearing liabilities		2,489,518			10,279		1.66			2,417,501			21,160		1.77
Interest-free funds:
Noninterest bearing deposits		1,188,547								1,121,684
Interest payable and other liabilities		33,569								33,217
Stockholders’ equity		421,968								419,897
Total interest free-funds		1,644,084								1,574,798
Total liabilities and stockholders’ equity	$	4,133,602							$	3,992,299
Net interest income				$	32,822							$	64,858
Net interest spread							2.86	%							2.95	%
Net interest margin							3.44	%							3.56	%

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