BancFirst Corporation
101 NORTH BROADWAY
OKLAHOMA CITY, OKLAHOMA 73102
PRESS RELEASE
For Immediate Release: Friday, April 18, 2008
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
BancFirst Corporation (NASDAQ GSM:BANF) reported net income of $11.6 million or
$0.74 diluted earnings per share for the first quarter compared to $11.1 million
or $0.69 diluted earnings per share for the same period in 2007. During the
first quarter of 2008, the Company recognized a $1.2 million after-tax gain
related to the Visa initial public offering.
The Company's net interest income for the first quarter was $35.4 million versus
$36.4 million for the same period a year ago. The net interest margin was 4.24%
compared to 4.75% in the first quarter of 2007. The decrease in the net interest
margin was driven by the Federal Reserve Bank's reduction in rates over the past
seven months. Total earning assets for the Company averaged $3.4 billion in the
first quarter, up $214 million or 6.8% from a year ago. Total loans were up $165
million or 7.1% compared to the first quarter of 2007. The loan loss provision
totaled $1.8 million, compared with no provision last year, due primarily to a
single large real estate loan that was downgraded by management. Nonperforming
loans equaled 0.41% of total assets, virtually unchanged from a year ago, while
net charge-offs represented 0.12% of loans. Both ratios were well below industry
peer levels. Noninterest income of $17.2 million included a one-time gain of
approximately $1.8 million, before taxes, stemming from the Company's interest
in the Visa initial public offering. Core noninterest income was up $1.5 million
due to growth in deposit accounts, insurance commissions and premiums and cash
management services. Noninterest expense for the quarter totaled $32.9 million
compared to $33.4 million for the same period a year ago. Last year's expenses
included a $1.9 million charge for the early redemption of trust preferred
securities. The increase in the core operating expenses over a year ago was
attributable to the increase in salaries and benefits due to the Company's
growth, including the acquisition of an insurance agency in the second quarter
of 2007.
At March 31, 2008, the Company's total assets were $3.8 billion, an increase of
$264 million or 7.5% over the first quarter of 2007. Loans reached $2.5 billion
as of March 31, 2008, while deposits increased $233 million to $3.3 billion,
representing a 7.6% increase. The Company's equity capital was $386 million or
10.2% of total assets.
The Company was once again 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 17th out of the 150 largest publicly traded banks and thrifts nationwide.
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)
2008
-------------------------------------------------------------------
Year-
Q1 Q2 Q3 Q4 To-Date
----------- ----------- ----------- ----------- -----------
Income Statement Data:
Net interest income $ 35,387 $ 35,387
Provision for loan losses 1,780 1,780
Securities transactions 28 28
Total noninterest income 17,241 17,241
Salaries and employee benefits 20,189 20,189
Total noninterest expense 32,928 32,928
Net income 11,594 11,594
Per Common Share Data:
Net income-basic 0.76 0.76
Net income-diluted 0.74 0.74
Cash dividends declared 0.20 0.20
Common shares outstanding 15,183,483 15,183,483
Average common shares outstanding -
Basic 15,208,049 15,208,049
Diluted 15,562,570 15,562,570
Performance Ratios:
Return on average assets 1.26% 1.26%
Return on average equity 12.24 12.24
Net interest margin 4.24 4.24
Efficiency ratio 62.57 62.57
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
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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
Total loans 2,500,849
Allowance for loan losses (30,193)
Securities 462,832
Deposits 3,302,103
Stockholders' equity 386,177
Book value per common share 25.43
Tangible book value per common share 22.65
Balance Sheet Ratios:
Average loans to deposits 76.91%
Average earning assets to total assets 91.27
Average stockholders' equity to average assets 10.27
Asset Quality Data:
Past due loans $ 643
Nonaccrual loans 11,892
Restructured loans 864
Total nonperforming and restructured loans 13,399
Other real estate owned and repossessed assets 2,074
Total nonperforming and restructured assets 15,473
Nonperforming and restructured loans to total loans 0.54%
Nonperforming and restructured assets to total assets 0.41
Allowance to total loans 1.21
Allowance to nonperforming and restructured loans 225.34
Net charge-offs to average loans 0.12
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
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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, 2008
-------------------------------
Interest Average
Average Income/ Yield/
Balance Expense Rate
---------- -------- -------
ASSETS
Earning assets:
Loans $2,493,224 $ 45,249 7.28%
Securities - taxable 431,435 4,557 4.24
Securities - tax exempt 34,625 522 6.05
Federal funds sold 415,731 3,183 3.07
---------- --------
Total earning assets 3,375,015 53,511 6.36
---------- --------
Nonearning assets:
Cash and due from banks 135,121
Interest receivable and other assets 217,117
Allowance for loan losses (29,394)
----------
Total nonearning assets 322,844
----------
Total assets $3,697,859
==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing liabilities:
Transaction deposits $ 410,017 $ 642 0.63%
Savings deposits 1,095,980 7,910 2.89
Time deposits 824,832 8,623 4.19
Short-term borrowings 23,644 184 3.12
Long-term borrowings 523 7 5.37
Junior subordinated debentures 26,539 491 7.42
---------- --------
Total interest-bearing liabilities 2,381,535 17,857 3.01
---------- --------
Interest-free funds:
Noninterest bearing deposits 911,055
Interest payable and other liabilities 25,456
Stockholders' equity 379,813
----------
Total interest free-funds 1,316,324
----------
Total liabilities and stockholders' equity $3,697,859
==========
Net interest income $ 35,654
========
Net interest spread 3.35%
====
Net interest margin 4.24%
====
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