Form 8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 


 

FORM 8-K

 


 

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported) February 18, 2005

 


 

BANCFIRST CORPORATION

(Exact name of registrant as specified in its charter)

 


 

OKLAHOMA   0-14384   73-1221379

(State or other jurisdiction

of incorporation)

  (Commission File Number)  

(I.R.S. Employer

Identification No.)

 

101 North Broadway, Oklahoma City, Oklahoma   73102
(Address of principal executive offices)   (Zip Code)

 

Registrant’s telephone number, including area code (405) 270-1086

 


 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 



Item 7.01. Regulation FD Disclosure.

 

BANCFIRST CORPORATION

CONSOLIDATED BALANCE SHEET

(Unaudited)

(Dollars in thousands, except per share data)

 

     December 31,

 
     2004

    2003

 

ASSETS

                

Cash and due from banks

   $ 100,564     $ 155,367  

Interest-bearing deposits with banks

     15,643       3,761  

Federal funds sold

     130,000       105,809  

Securities (market value: $561,242 and $566,461, respectively)

     560,234       564,735  

Loans:

                

Total loans (net of unearned interest)

     2,093,515       1,947,223  

Allowance for loan losses

     (25,746 )     (26,148 )
    


 


Loans, net

     2,067,769       1,921,075  

Premises and equipment, net

     68,643       66,423  

Other real estate owned

     2,035       3,428  

Intangible assets, net

     6,203       4,726  

Goodwill

     30,046       27,611  

Accrued interest receivable

     18,723       19,006  

Other assets

     47,117       49,428  
    


 


Total assets

   $ 3,046,977     $ 2,921,369  
    


 


LIABILITIES AND STOCKHOLDERS’ EQUITY

                

Deposits:

                

Noninterest-bearing

   $ 807,474     $ 720,366  

Interest-bearing

     1,849,960       1,865,324  
    


 


Total deposits

     2,657,434       2,585,690  

Short-term borrowings

     27,707       16,610  

Accrued interest payable

     3,884       3,741  

Other liabilities

     18,542       21,546  

Long-term borrowings

     7,815       11,063  

Junior subordinated debentures

     51,804       25,000  

Minority interest

     2,294       2,347  
    


 


Total liabilities

     2,769,480       2,665,997  
    


 


Commitments and contingent liabilities

                

Stockholders’ equity:

                

Common stock, $1.00 par (shares issued: 7,840,796 and 7,822,637, respectively)

     7,841       7,823  

Capital surplus

     63,054       60,819  

Retained earnings

     203,450       176,893  

Accumulated other comprehensive income, net of income tax of $1,187 and $5,128, respectively

     3,152       9,837  
    


 


Total stockholders’ equity

     277,497       255,372  
    


 


Total liabilities and stockholders’ equity

   $ 3,046,977     $ 2,921,369  
    


 


 

The accompanying notes are an integral part of these consolidated financial statements.

 

2


BANCFIRST CORPORATION

CONSOLIDATED STATEMENT OF INCOME

(Unaudited)

(Dollars in thousands, except per share data)

 

     Three Months Ended
December 31,


   

Year Ended

December 31,


 
     2004

    2003

    2004

    2003

 

INTEREST INCOME

                                

Loans, including fees

   $ 31,705     $ 28,823     $ 119,294     $ 115,050  

Securities:

                                

Taxable

     5,483       5,260       21,144       21,960  

Tax-exempt

     343       410       1,455       1,601  

Federal funds sold

     910       494       2,798       2,319  

Interest-bearing deposits with banks

     50       41       74       102  
    


 


 


 


Total interest income

     38,491       35,028       144,765       141,032  
    


 


 


 


INTEREST EXPENSE

                                

Deposits

     5,993       5,818       22,528       27,900  

Short-term borrowings

     120       85       332       305  

Long-term borrowings

     120       179       548       1,263  

Junior subordinated debentures

     1,103       612       4,111       2,447  
    


 


 


 


Total interest expense

     7,336       6,694       27,519       31,915  
    


 


 


 


Net interest income

     31,155       28,334       117,246       109,117  

Provision for loan losses

     899       1,354       2,699       3,722  
    


 


 


 


Net interest income after provision for loan losses

     30,256       26,980       114,547       105,395  
    


 


 


 


NONINTEREST INCOME

                                

Trust revenue

     1,211       1,039       4,490       4,267  

Service charges on deposits

     6,514       6,684       27,063       25,771  

Securities transactions

     (90 )     204       (236 )     3,283  

Income from sales of loans

     636       609       1,316       2,303  

Other

     6,687       3,065       19,222       13,196  
    


 


 


 


Total noninterest income

     14,958       11,601       51,855       48,820  
    


 


 


 


NONINTEREST EXPENSE

                                

Salaries and employee benefits

     15,779       14,393       63,216       57,326  

Occupancy and fixed assets expense, net

     1,634       1,764       6,488       6,187  

Depreciation

     1,648       1,498       6,128       5,455  

Amortization of intangibles assets

     307       178       831       580  

Data processing services

     623       655       2,493       2,339  

Net expense from other real estate owned

     171       227       524       401  

Loss on early extinguishment of debt

     —         —         —         2,429  

Marketing and business promotions

     937       837       3,382       2,906  

Other

     6,663       6,849       25,682       27,759  
    


 


 


 


Total noninterest expense

     27,762       26,401       108,744       105,382  
    


 


 


 


Income before taxes

     17,452       12,180       57,658       48,833  

Income tax expense

     (6,418 )     (4,359 )     (20,482 )     (16,951 )
    


 


 


 


Net income

     11,034       7,821       37,176       31,882  

Other comprehensive income, net of tax:

                                

Unrealized gains (losses) on securities

     (2,509 )     (1,653 )     (6,839 )     (3,928 )

Reclassification adjustment for (gains) losses included in net income

     58       (133 )     154       (2,134 )
    


 


 


 


Comprehensive income

   $ 8,583     $ 6,035     $ 30,491     $ 25,820  
    


 


 


 


NET INCOME PER COMMON SHARE

                                

Basic

   $ 1.41     $ 1.00     $ 4.75     $ 4.07  
    


 


 


 


Diluted

   $ 1.38     $ 0.98     $ 4.65     $ 4.00  
    


 


 


 


The accompanying notes are an integral part of these consolidated financial statements.

 

 

3


BANCFIRST CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(Dollars in thousands, except per share data)

 

(1) GENERAL

 

The accompanying consolidated financial statements include the accounts of BancFirst Corporation, Century Life Assurance Company, Council Oak Partners LLC, Wilcox & Jones, Inc., and BancFirst and its subsidiaries (the “Company”). The operating subsidiaries of BancFirst are Council Oak Investment Corporation, Citibank Insurance Agency, Inc., BancFirst Agency, Inc., Lenders Collection Corporation, and PremierSource, LLC. Three other operating subsidiaries of BancFirst, Mojave Asset Management Company, Desert Asset Management Company, and Delamar Asset Management Limited Partnership, were liquidated and dissolved in August 2004. One other operating subsidiary of BancFirst, Express Financial Corporation, was liquidated and dissolved in December 2004. All significant intercompany accounts and transactions have been eliminated. Assets held in a fiduciary or agency capacity are not assets of the Company and, accordingly, are not included in the consolidated financial statements.

 

The unaudited interim financial statements contained herein reflect all adjustments which are, in the opinion of management, necessary to provide a fair statement of the financial position and results of operations of the Company for the interim periods presented. All such adjustments are of a normal and recurring nature. There have been no significant changes in the accounting policies of the Company since December 31, 2003, the date of the most recent annual report. Certain amounts in the 2003 financial statements have been reclassified to conform to the 2004 presentation.

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States inherently involves the use of estimates and assumptions that affect the amounts reported in the financial statements and the related disclosures. These estimates relate principally to the determination of the allowance for loan losses, income taxes and the fair values of financial instruments. Such estimates and assumptions may change over time and actual amounts realized may differ from those reported.

 

(2) RECENT ACCOUNTING PRONOUNCEMENTS

 

In January 2003, the FASB issued Interpretation No. 46, “Consolidation of Variable Interest Entities, an Interpretation of ARB No. 51” (“FIN 46”) which provides guidance for determining when an entity should consolidate another entity that meets the definition of a variable interest entity. Special purpose entities and other types of entities are assessed for consolidation under this new guidance. FIN 46 requires a variable interest entity to be consolidated if the company will absorb a majority of the expected losses, will receive a majority of the expected residual returns, or both. FIN 46 was effective immediately for interests in variable interest entities acquired after January 31, 2003. It applied in the first interim period after June 15, 2003 to interests in variable interest entities acquired before February 1, 2003. As of October 9, 2003, the FASB deferred compliance with FIN 46 from July 1, 2003 to the first period ending after December 15, 2003 for variable interest entities created prior to February 1, 2003. However, the Company adopted FIN 46 on July 1, 2003, as originally issued, and de-consolidated BFC Capital Trust I. In December 2003, the FASB issued a revision of FIN 46 (“Revised FIN 46”) that codified the proposed modifications and other decisions

 

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previously issued through certain FASB Staff Positions, made other revisions, and superceded the original FIN 46. The effect of this de-consolidation was to remove the $25,000 of 9.65% Capital Securities and the related interest expense from the Company’s consolidated financial statements, and instead report the $25,000 as part of Junior Subordinated Debentures issued by BancFirst Corporation to the Trust, and the related interest expense thereon. A potential result of the de-consolidation of the Trust could be that the 9.65% Capital Securities and the 7.20% Cumulative Trust Preferred Securities described in note (3) would no longer be included in the Company’s Tier 1 capital. The Federal Reserve Board has issued interim guidance that allows such securities to continue to qualify as Tier 1 capital while the issue of de-consolidation continues under review. In May 2004, the Federal Reserve Board requested public comment on a proposed rule that would retain trust preferred securities in Tier 1 capital, but with stricter limits.

 

In May 2003, the FASB issued FAS No. 150, “Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity.” This statement is effective for all new and modified financial instruments beginning with the first interim period beginning after June 15, 2003. FAS No. 150 changes the accounting for certain financial instruments that, under previous guidance, could be accounted for as equity and requires that those instruments be classified as liabilities, or assets in certain circumstances. The adoption of this new standard did not have a material effect on the Company’s consolidated financial statements.

 

In March 2004, the FASB ratified EITF Issue No. 03-1, “The Meaning of Other-Than-Temporary Impairment and Its Application to Certain Investments,” (“EITF 03-1”) which provides guidance on recognizing other-than-temporary impairments on certain investments. The Issue is effective for other-than-temporary impairment evaluations for investments accounted for under FAS No. 115, “Accounting for Certain Investments in Debt and Equity Securities,” as well as non-marketable equity securities accounted for under the cost method for reporting periods beginning after June 15, 2004. The adoption of this new standard did not have a material effect on the Company’s consolidated financial statements.

 

In December 2004, the FASB issued FAS No. 123 (revised 2004), “Share-Based Payment,” which is a revision of FAS No. 123, “Accounting for Stock-Based Compensation”. FAS No. 123(R) supersedes APB Opinion No. 25, “Accounting for Stock Issued to Employees”, and amends FAS No. 95, “Statement of Cash Flows”. Generally, the approach in FAS No. 123(R) is similar to the approach described in FAS No. 123. However, FAS No. 123(R) requires all share-based payments to employees, including grants of employee stock options, to be recognized in the income statement based on their fair values. Pro forma disclosure is no longer an alternative. FAS No. 123(R) must be adopted no later than July 1, 2005. Early adoption will be permitted in periods in which financial statements have not yet been issued. The Company expects to adopt FAS No. 123(R) on July 1, 2005.

 

(3) RECENT DEVELOPMENTS; MERGERS, ACQUISITIONS AND DISPOSALS

 

In January 2003, the Company repurchased 320,000 shares of its common stock for $14,400. The shares were repurchased through a market-maker in the Company’s stock and the repurchase was not a part of the Company’s ongoing Stock Repurchase Program.

 

In October 2003, the Company completed the acquisition of Lincoln National Bancorporation (“Lincoln”) of Oklahoma City, Oklahoma for cash of $16,949. Lincoln had consolidated total assets of approximately $107,673. As a result of the acquisition, Lincoln was merged into the Company, and Lincoln’s wholly-owned bank subsidiary, Lincoln National Bank, became a subsidiary of the Company and was merged into BancFirst in February 2004. The acquisition was accounted for as a purchase. Accordingly, the effects of the acquisition are included in the Company’s consolidated financial statements from the date of the acquisition forward.

 

In November 2003, BancFirst completed the acquisition of the Hobart and Lone Wolf, Oklahoma branches of Gold Bank. As a result of the acquisition, BancFirst purchased approximately $16,256 of loans and other assets, and assumed approximately $40,465 of deposits, for a premium of approximately $2,731. The acquisition was accounted for as a purchase. Accordingly, the effects of the acquisition are included in the Company’s consolidated financial statements from the date of the acquisition forward.

 

In January 2004, BancFirst Corporation established BFC Capital Trust II (“BFC II”), a trust formed under the Delaware Business Trust Act. BancFirst Corporation owns all of the common securities of BFC II. In February 2004, BFC II issued $25,000 of aggregate liquidation amount of 7.20% Cumulative Trust Preferred Securities (the “Trust Preferred Securities”) to other investors. In March 2004, BFC II issued an additional $1,000 in Trust Preferred Securities through the execution of an over-allotment option. The proceeds from the sale of the Trust Preferred Securities and the common securities of BFC II were invested in $26,804 of 7.20% Junior Subordinated Debentures of BancFirst Corporation. Interest payments on the 7.20% Junior Subordinated Debentures are payable January 15, April 15, July 15 and October 15 of each year. Such interest payments may be deferred for up to twenty consecutive quarters. The stated maturity date of the 7.20% Junior Subordinated Debentures is March 31, 2034, but they are subject to mandatory

 

5


redemption pursuant to optional prepayment terms. The Trust Preferred Securities represent an undivided interest in the 7.20% Junior Subordinated Debentures, are guaranteed by BancFirst Corporation, and currently qualify as Tier 1 regulatory capital but could potentially be excluded in the future as discussed in note (2). During any deferral period or during any event of default, BancFirst Corporation may not declare or pay any dividends on any of its capital stock.

 

In October 2004, the Company completed the acquisition of Wilcox & Jones, Inc., an independent insurance agency headquartered in Tulsa, Oklahoma for $4.8 million. As a result of the acquisition, Wilcox & Jones was merged into the Company and became a wholly-owned subsidiary of BancFirst Corporation. The acquisition was accounted for as a purchase. Accordingly, the effects of the acquisition will be included in the Company’s consolidated financial statements from the date of the acquisition forward.

 

In October 2004, the Company sold a minority interest it owned in a community bank and recognized a gain of approximately $2.4 million.

 

(4) SECURITIES

 

The table below summarizes securities held for investment and securities available for sale.

 

     December 31,

     2004

   2003

Held for investment at cost (market value: $33,168 and $40,191, respectively)

   $ 32,160    $ 38,465

Available for sale, at market value

     528,074      526,270
    

  

Total

   $ 560,234    $ 564,735
    

  

 

5) LOANS AND ALLOWANCE FOR LOAN LOSSES

 

The following is a schedule of loans outstanding by category:

 

     December 31,

 
     2004

    2003

 
     Amount

   Percent

    Amount

   Percent

 

Commercial and industrial

   $ 382,438    18.27 %   $ 409,910    21.05 %

Agriculture

     93,691    4.48       85,094    4.37  

State and political subdivisions:

                          

Taxable

     3,093    0.15       221    0.01  

Tax-exempt

     15,822    0.76       20,560    1.06  

Real Estate:

                          

Construction

     152,402    7.28       153,755    7.90  

Farmland

     83,887    4.01       83,843    4.31  

One to four family residences

     502,015    23.98       441,010    22.65  

Multifamily residential properties

     11,987    0.57       10,316    0.53  

Commercial

     544,370    26.00       455,961    23.41  

Consumer

     273,548    13.07       265,437    13.63  

Other

     30,262    1.43       21,116    1.08  
    

  

 

  

Total loans

   $ 2,093,515    100.00 %   $ 1,947,223    100.00 %
    

  

 

  

Loans held for sale (included above)

   $ 9,066          $ 4,115       
    

        

      

 

The Company’s loans are mostly to customers within Oklahoma and over half of the loans are secured by real estate. Credit risk on loans is managed through limits on amounts loaned to individual borrowers, underwriting standards and loan monitoring procedures. The amounts and types of collateral obtained to secure loans are based upon the Company’s underwriting standards and management’s credit evaluation. Collateral varies, but may include real estate, equipment, accounts receivable, inventory, livestock and

 

6


securities. The Company’s interest in collateral is secured through filing mortgages and liens, and in some cases, by possession of the collateral. The amount of estimated loss due to credit risk in the Company’s loan portfolio is provided for in the allowance for loan losses. The amount of the allowance required to provide for all existing losses in the loan portfolio is an estimate based upon evaluations of loans, appraisals of collateral and other estimates which are subject to rapid change due to changing economic conditions and the economic prospects of borrowers. It is reasonably possible that a material change could occur in the estimated allowance for loan losses in the near term.

 

Changes in the allowance for loan losses are summarized as follows:

 

     Three Months Ended
December 31,


    Year Ended
December 31,


 
     2004

    2003

    2004

    2003

 

Balance at beginning of period

   $ 25,568     $ 24,890     $ 26,148     $ 24,367  
    


 


 


 


Charge-offs

     (937 )     (1,557 )     (4,179 )     (4,493 )

Recoveries

     216       197       1,078       1,288  
    


 


 


 


Net charge-offs

     (721 )     (1,360 )     (3,101 )     (3,205 )
    


 


 


 


Provisions charged to operations

     899       1,354       2,699       3,722  

Additions from acquisitions

     —         1,264       —         1,264  
    


 


 


 


Total additions

     899       2,618       2,699       4,986  
    


 


 


 


Balance at end of period

   $ 25,746     $ 26,148     $ 25,746     $ 26,148  
    


 


 


 


The net charge-offs by category are summarized as follows:

                                
     Three Months Ended
December 31,


    Year Ended
December 31,


 
     2004

    2003

    2004

    2003

 

Commercial, financial and other

   $ 339     $ 677     $ 1,370     $ 1,494  

Real estate – construction

     —         (2 )     (7 )     70  

Real estate – mortgage

     157       245       754       471  

Consumer

     225       440       984       1,170  
    


 


 


 


Total

   $ 721     $ 1,360     $ 3,101     $ 3,205  
    


 


 


 


 

(6) NONPERFORMING AND RESTRUCTURED ASSETS

 

Below is a summary of nonperforming and restructured assets:

 

     December 31,

 
     2004

    2003

 

Past due over 90 days and still accruing

   $ 3,149     $ 2,674  

Nonaccrual

     8,688       13,381  

Restructured

     362       415  
    


 


Total nonperforming and restructured loans

     12,199       16,470  

Other real estate owned and repossessed assets

     2,513       3,939  
    


 


Total nonperforming and restructured assets

   $ 14,712     $ 20,409  
    


 


Nonperforming and restructured loans to total loans

     0.58 %     0.85 %
    


 


Nonperforming and restructured assets to total assets

     0.48 %     0.70 %
    


 


 

(7) CAPITAL

 

The Company is subject to risk-based capital guidelines issued by the Board of Governors of the Federal Reserve System. These guidelines are used to evaluate capital adequacy and involve both quantitative and qualitative evaluations of the Company’s assets, liabilities, and certain off-balance-sheet items calculated under regulatory practices. Failure to meet the minimum capital requirements can initiate

 

7


certain mandatory or discretionary actions by the regulatory agencies that could have a direct material effect on the Company’s financial statements. The required minimums and the Company’s respective ratios are shown below.

 

    

Minimum

Required


    December 31,

 
       2004

    2003

 

Tier 1 capital

         $ 293,650     $ 240,532  

Total capital

         $ 319,791     $ 266,765  

Risk-adjusted assets

         $ 2,304,018     $ 2,136,970  

Leverage ratio

   3.00 %     9.75 %     8.33 %

Tier 1 capital ratio

   4.00 %     12.75 %     11.26 %

Total capital ratio

   8.00 %     13.88 %     12.48 %

 

To be “well capitalized” under federal bank regulatory agency definitions, a depository institution must have a Tier 1 Ratio of at least 6%, a combined Tier 1 and Tier 2 Ratio of at least 10%, and a Leverage Ratio of at least 5%. As of December 31, 2004 and 2003, the Company was considered to be “well capitalized”. There are no conditions or events since the most recent notification of the Company’s capital category that management believes would change its category.

 

(8) STOCK REPURCHASE PLAN

 

In November 1999, the Company adopted a new Stock Repurchase Program (the “SRP”) authorizing management to repurchase up to 300,000 shares of the Company’s common stock. The SRP was amended in May 2001 to increase the number of shares authorized to be purchased by 277,916 shares and was amended again in August 2002 to increase the number of shares authorized to be purchased by 182,265 shares. The SRP may be used as a means to increase earnings per share and return on equity, to purchase treasury stock for the exercise of stock options or for distributions under the Deferred Stock Compensation Plan, to provide liquidity for optionees to dispose of stock from exercises of their stock options, and to provide liquidity for shareholders wishing to sell their stock. The timing, price and amount of stock repurchases under the SRP may be determined by management and must be approved by the Company’s Executive Committee. At December 31, 2004 there were 208,126 shares remaining that could be repurchased under the SRP. Below is a summary of the shares repurchased under the program.

 

    

Three Months Ended

December 31,


  

Year Ended

December 31,


     2004

   2003

   2004

   2003

Number of shares repurchased

     —        1,075      41,500      40,075

Average price of shares repurchased

   $ —      $ 55.75    $ 56.85    $ 45.80

 

(9) COMPREHENSIVE INCOME

 

The only component of comprehensive income reported by the Company is the unrealized gain or loss on securities available for sale. The amount of this unrealized gain or loss, net of tax, has been presented in the statement of income for each period as a component of other comprehensive income. Below is a summary of the tax effects of this unrealized gain or loss.

 

     Three Months Ended
December 31,


   

Year Ended

December 31,


 
     2004

    2003

    2004

    2003

 

Unrealized gain (loss) during the period:

                                

Before-tax amount

   $ (3,928 )   $ (2,124 )   $ (10,828 )   $ (5,525 )

Tax (expense) benefit

     1,419       471       3,989       1,597  
    


 


 


 


Net-of-tax amount

   $ (2,509 )   $ (1,653 )   $ (6,839 )   $ (3,928 )
    


 


 


 


 

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The amount of unrealized gain or loss included in accumulated other comprehensive income is summarized below.

 

     Three Months Ended
December 31,


    Year Ended
December 31,


 
     2004

    2003

    2004

    2003

 

Unrealized gain (loss) on securities:

                                

Beginning balance

   $ 5,603     $ 11,623     $ 9,837     $ 15,899  

Current period change

     (2,509 )     (1,653 )     (6,839 )     (3,928 )

Reclassification adjustment for (gains) losses included in net income

     58       (133 )     154       (2,134 )
    


 


 


 


Ending balance

   $ 3,152     $ 9,837     $ 3,152     $ 9,837  
    


 


 


 


 

(10) NET INCOME PER COMMON SHARE

 

Basic and diluted net income per common share are calculated as follows:

 

     Income
(Numerator)


   Shares
(Denominator)


   Per
Share
Amount


Three Months Ended December 31, 2004

                  

Basic

                  

Income available to common stockholders

   $ 11,034    7,835,094    $ 1.41
                

Effect of stock options

     —      184,315       
    

  
      

Diluted

                  

Income available to common stockholders plus assumed exercises of stock options

   $ 11,034    8,019,409    $ 1.38
    

  
  

Three Months Ended December 31, 2003

                  

Basic

                  

Income available to common stockholders

   $ 7,821    7,820,450    $ 1.00
                

Effect of stock options

     —      156,422       
    

  
      

Diluted

                  

Income available to common stockholders plus assumed exercises of stock options

   $ 7,821    7,976,872    $ 0.98
    

  
  

Year Ended December 31, 2004

                  

Basic

                  

Income available to common stockholders

   $ 37,176    7,830,513    $ 4.75
                

Effect of stock options

     —      165,023       
    

  
      

Diluted

                  

Income available to common stockholders plus assumed exercises of stock options

   $ 37,176    7,995,536    $ 4.65
    

  
  

Year Ended December 31, 2003

                  

Basic

                  

Income available to common stockholders

   $ 31,882    7,835,589    $ 4.07
                

Effect of stock options

     —      137,286       
    

  
      

Diluted

                  

Income available to common stockholders plus assumed exercises of stock options

   $ 31,882    7,972,875    $ 4.00
    

  
  

 

 

 

9


Below is the number and average exercise prices of options that were excluded from the computation of diluted net income per share for each period because the options’ exercise prices were greater than the average market price of the common shares.

 

     Shares

   Average
Exercise
Price


Three Months Ended December 31, 2004

   —      $ —  

Three Months Ended December 31, 2003

   —      $ —  

Year Ended December 31, 2004

   —      $ —  

Year Ended December 31, 2003

   9,918    $ 52.59

 

10


BANCFIRST CORPORATION

SELECTED CONSOLIDATED FINANCIAL DATA

(Unaudited)

(Dollars in thousands, except per share data)

 

    

Three Months Ended

December 31,


    Year Ended
December 31,


 
     2004

    2003

    2004

    2003

 

Per Common Share Data

                                

Net income – basic

   $ 1.41     $ 1.00     $ 4.75     $ 4.07  

Net income – diluted

     1.38       0.98       4.65       4.00  

Cash dividends

     0.28       0.25       1.06       0.94  

Performance Data

                                

Return on average assets

     1.43 %     1.07 %     1.22 %     1.12 %

Return on average stockholders’ equity

     15.90       12.21       13.83       12.74  

Cash dividend payout ratio

     19.86       25.00       22.32       23.10  

Net interest spread

     4.02       3.95       3.89       3.85  

Net interest margin

     4.48       4.31       4.29       4.27  

Efficiency ratio

     60.20       66.11       64.31       66.72  

Net charge-offs total loans

     0.14       0.29       0.16       0.18  

 

     December 31,

 
     2004

    2003

 

Balance Sheet Data

                

Book value per share

   $ 35.39     $ 32.64  

Tangible book value per share

     30.77       28.51  

Average loans to deposits (year-to-date)

     74.47 %     73.33 %

Average earning assets to total assets (year-to-date)

     91.02       91.24  

Average stockholders’ equity to average assets (year-to-date)

     8.85       8.81  

Asset Quality Ratios

                

Nonperforming and restructured loans to total loans

     0.58 %     0.85 %

Nonperforming and restructured assets to total assets

     0.48       0.70  

Allowance for loan losses to total loans

     1.23       1.34  

Allowance for loan losses to nonperforming and restructured loans

     211.05       158.76  

 

11


BANCFIRST CORPORATION

CONSOLIDATED AVERAGE BALANCE SHEETS AND INTEREST MARGIN ANALYSES

(Unaudited)

Taxable Equivalent Basis (Dollars in thousands)

 

     Three Months Ended December 31,

 
     2004

    2003

 
     Average
Balance


    Interest
Income/
Expense


   Average
Yield/
Rate


    Average
Balance


    Interest
Income/
Expense


   Average
Yield/
Rate


 

ASSETS

                                          

Earning assets:

                                          

Loans (1)

   $ 2,047,852     $ 31,836    6.18 %   $ 1,868,742     $ 28,959    6.15 %

Securities - taxable

     524,211       5,483    4.16       512,825       5,260    4.07  

Securities - tax exempt

     34,256       527    6.12       40,095       631    6.24  

Federal funds sold

     189,593       960    2.01       216,540       534    0.98  
    


 

        


 

      

Total earning assets

     2,795,912       38,806    5.52       2,638,202       35,384    5.32  
    


 

        


 

      

Nonearning assets:

                                          

Cash and due from banks

     132,655                    118,758               

Interest receivable and other assets

     170,267                    161,971               

Allowance for loan losses

     (25,586 )                  (25,865 )             
    


              


            

Total nonearning assets

     277,336                    254,864               
    


              


            

Total assets

   $ 3,073,248                  $ 2,893,066               
    


              


            

LIABILITIES AND STOCKHOLDERS’ EQUITY

                                          

Interest-bearing liabilities:

                                          

Transaction deposits

   $ 432,721       332    0.31 %   $ 400,304       312    0.31 %

Savings deposits

     729,393       2,251    1.23       720,775       1,872    1.03  

Time deposits

     693,480       3,410    1.96       746,445       3,634    1.93  

Short-term borrowings

     27,463       120    1.74       30,461       85    1.11  

Long-term borrowings

     8,075       120    5.91       11,378       179    6.24  

Junior subordinated debentures

     51,804       1,103    8.47       25,000       612    9.71  
    


 

        


 

      

Total interest-bearing liabilities

     1,942,936       7,336    1.50       1,934,363       6,694    1.37  
    


 

        


 

      

Interest-free funds:

                                          

Noninterest-bearing deposits

     828,777                    679,326               

Interest payable and other liabilities

     25,453                    25,296               

Stockholders’ equity

     276,082                    254,081               
    


              


            

Total interest-free funds

     1,130,312                    958,703               
    


              


            

Total liabilities and stockholders’ equity

   $ 3,073,248                  $ 2,893,066               
    


              


            

Net interest income

           $ 31,470                  $ 28,690       
            

                

      

Net interest spread

                  4.02 %                  3.95 %
                   

                

Net interest margin

                  4.48 %                  4.31 %
                   

                


(1) Nonaccrual loans are included in the average loan balances and any interest on such nonaccrual loans is recognized on a cash basis.

 

 

12


BANCFIRST CORPORATION

CONSOLIDATED AVERAGE BALANCE SHEETS AND INTEREST MARGIN ANALYSES

(Unaudited)

Taxable Equivalent Basis (Dollars in thousands)

 

     Year Ended December 31,

 
     2004

    2003

 
     Average
Balance


    Interest
Income/
Expense


   Average
Yield/
Rate


    Average
Balance


    Interest
Income/
Expense


   Average
Yield/
Rate


 

ASSETS

                                          

Earning assets:

                                          

Loans (1)

   $ 1,981,918     $ 119,813    6.05 %   $ 1,822,895     $ 115,660    6.34 %

Securities – taxable

     530,340       21,144    3.99       504,429       21,960    4.35  

Securities - tax exempt

     35,688       2,239    6.27       38,016       2,463    6.48  

Federal funds sold

     217,602       2,872    1.32       226,182       2,421    1.07  
    


 

        


 

      

Total earning assets

     2,765,548       146,068    5.28       2,591,522       142,504    5.50  
    


 

        


 

      

Nonearning assets:

                                          

Cash and due from banks

     126,747                    120,166               

Interest receivable and other assets

     171,917                    153,569               

Allowance for loan losses

     (25,937 )                  (24,956 )             
    


              


            

Total nonearning assets

     272,727                    248,779               
    


              


            

Total assets

   $ 3,038,275                  $ 2,840,301               
    


              


            

LIABILITIES AND STOCKHOLDERS’ EQUITY

                                          

Interest-bearing liabilities:

                                          

Transaction deposits

   $ 432,116       1,255    0.29 %   $ 382,885       1,576    0.41 %

Savings deposits

     746,864       8,284    1.11       709,332       9,246    1.30  

Time deposits

     717,290       12,989    1.81       767,597       17,078    2.22  

Short-term borrowings

     27,404       332    1.21       27,460       305    1.11  

Long-term borrowings

     8,819       548    6.21       21,745       1,263    5.81  

Junior subordinated debentures

     47,540       4,111    8.65       25,000       2,447    9.79  
    


 

        


 

      

Total interest-bearing liabilities

     1,980,033       27,519    1.39       1,934,019       31,915    1.65  
    


 

        


 

      

Interest-free funds:

                                          

Noninterest bearing deposits

     765,011                    625,972               

Interest payable and other liabilities

     24,332                    29,985               

Stockholders’ equity

     268,899                    250,325               
    


              


            

Total interest-free funds

     1,058,242                    906,282               
    


              


            

Total liabilities and stockholders’ equity

   $ 3,038,275                  $ 2,840,301               
    


              


            

Net interest income

           $ 118,549                  $ 110,589       
            

                

      

Net interest spread

                  3.89 %                  3.85 %
                   

                

Net interest margin

                  4.29 %                  4.27 %
                   

                


(1) Nonaccrual loans are included in the average loan balances and any interest on such nonaccrual loans is recognized on a cash basis.

 

13


SIGNATURES

 

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

    BANCFIRST CORPORATION
                      (Registrant)
Date February 18, 2005  

/s/ Randy P. Foraker


                        (Signature)
    Randy P. Foraker
    Executive Vice President and
    Chief Risk Officer;
    Assistant Secretary/Treasurer
    (Principal Accounting Officer)

 

14