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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

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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 28, 2003

 

 

 

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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

 

 

 

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Item 9.    Regulation FD Disclosure.

 

BANCFIRST CORPORATION

CONSOLIDATED BALANCE SHEET

(Unaudited)

(Dollars in thousands, except per share data)

 

		December 31,
		2002				2001
ASSETS
Cash and due from banks		$	152,239			$	152,577
Interest-bearing deposits with banks			8,866				12,528
Federal funds sold			134,000				208,000
Securities (market value: $567,717 and $545,950, respectively)			565,225				544,291
Loans:
Total loans (net of unearned interest)			1,814,862				1,717,433
Allowance for loan losses			(24,367	)			(24,531	)
Loans, net			1,790,495				1,692,902
Premises and equipment, net			60,281				61,642
Other real estate owned			2,345				2,132
Intangible assets, net			21,660				22,149
Accrued interest receivable			21,526				22,012
Other assets			40,225				38,812
Total assets		$	2,796,862			$	2,757,045
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Noninterest-bearing		$	610,511			$	599,108
Interest-bearing			1,818,137				1,802,220
Total deposits			2,428,648				2,401,328
Short-term borrowings			24,443				52,091
Long-term borrowings			34,087				24,090
9.65% Capital Securities			25,000				25,000
Accrued interest payable			5,611				9,391
Other liabilities			25,317				19,837
Minority interest			2,248				2,140
Total liabilities			2,545,354				2,533,877
Commitments and contingent liabilities
Stockholders’ equity:
Common stock, $1.00 par (shares issued: 8,136,852 and 8,260,099, respectively)			8,137				8,260
Capital surplus			59,232				57,412
Retained earnings			168,240				148,306
Accumulated other comprehensive income, net of income tax of $7,840 and $4,680, respectively			15,899				9,190
Total stockholders’ equity			251,508				223,168
Total liabilities and stockholders’ equity		$	2,796,862			$	2,757,045

 

See accompanying notes to consolidated financial statements.

 

2

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BANCFIRST CORPORATION

CONSOLIDATED STATEMENT OF INCOME

(Unaudited)

(Dollars in thousands, except per share data)

 

		Three Months Ended December 31,								Year Ended December 31,
		2002				2001				2002				2001
INTEREST INCOME
Loans, including fees		$	30,400			$	33,180			$	125,135			$	144,250
Securities:
Taxable			6,538				7,031				27,338				29,513
Tax-exempt			445				524				1,905				2,223
Federal funds sold			642				770				2,639				6,266
Interest-bearing deposits with banks			9				121				122				391
Total interest income			38,034				41,626				157,139				182,643
INTEREST EXPENSE
Deposits			9,421				14,351				42,879				72,009
Short-term borrowings			119				189				607				1,632
Long-term borrowings			469				391				1,876				1,623
9.65% Capital Securities			612				612				2,447				2,447
Total interest expense			10,621				15,543				47,809				77,711
Net interest income			27,413				26,083				109,330				104,932
Provision for loan losses			1,654				388				5,276				1,780
Net interest income after provision for loan losses			25,759				25,695				104,054				103,152
NONINTEREST INCOME
Trust revenue			919				945				3,989				3,632
Service charges on deposits			6,617				5,480				25,001				19,880
Securities transactions			254				(228	)			291				221
Income from sales of loans			402				331				1,370				947
Other			3,624				3,073				14,561				12,228
Total noninterest income			11,816				9,601				45,212				36,908
NONINTEREST EXPENSE
Salaries and employee benefits			13,952				13,894				56,119				54,513
Occupancy and fixed assets expense, net			1,356				1,395				5,429				5,815
Depreciation			1,454				1,414				5,423				5,342
Amortization of intangibles			146				731				600				2,996
Data processing services			540				527				2,117				2,240
Net expense from other real estate owned			148				28				428				153
Other			7,000				6,486				28,264				25,561
Total noninterest expense			24,596				24,474				98,380				96,620
Income before taxes			12,979				10,822				50,886				43,440
Income tax expense			(4,585	)			(3,927	)			(17,324	)			(15,479	)
Net income			8,394				6,895				33,562				27,961
Other comprehensive income, net of tax:
Unrealized gains (losses) on securities			(116	)			(2,024	)			6,709				7,660
Comprehensive income		$	8,278			$	4,871			$	40,271			$	35,621
NET INCOME PER COMMON SHARE
Basic		$	1.03			$	0.84			$	4.12			$	3.38
Diluted		$	1.02			$	0.83			$	4.06			$	3.34

 

See accompanying notes to consolidated financial statements.

 

3

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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, BFC Capital Trust I, Century Life Assurance Company, Council Oak Capital, Inc., Council Oak Partners, LLC, and BancFirst and its subsidiaries. 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, 2001, the date of the most recent annual report. Certain amounts in the 2001 financial statements have been reclassified to conform to the 2002 presentation.

 

The preparation of financial statements in conformity with generally accepted accounting principles inherently involves the use of estimates and assumptions that affect the amounts reported in the financial statements and the related disclosures. Such estimates and assumptions may change over time and actual amounts may differ from those reported.

 

(2)    RECENT ACCOUNTING PRONOUNCEMENTS

 

In June 2001, the Financial Accounting Standards Board (the “FASB”) issued Statement of Financial Accounting Standards (“FAS”) No. 141, “Business Combinations”. This Statement is effective for all business combinations initiated after June 30, 2001, and requires that all business combinations be accounted for using the purchase method. Also in June 2001, the FASB issued FAS No. 142, “Goodwill and Other Intangible Assets”. Statement 142 requires that, for fiscal years beginning after December 15, 2001, goodwill and other indefinite-lived intangible assets already recognized in an entity’s financial statements no longer be amortized, and that goodwill and other indefinite-lived intangible assets acquired after June 30, 2001 not be amortized. Instead, goodwill and other indefinite-lived intangible assets will be tested at least annually for impairment by comparing the fair value of those assets with their recorded amounts. Any impairment losses will be reported in the entity’s income statement. The adoption of Statement 142 had a material effect on the consolidated financial statements of the Company by eliminating goodwill amortization from its income statement and from the calculations of net income per share. The Company did not recognize any impairment charges from the adoption of Statement 142. See note (7) for more information regarding intangible assets and goodwill.

 

In June 2001, the FASB issued FAS No. 143, “Accounting for Asset Retirement Obligations”. This Statement is effective for financial statements issued for fiscal years beginning after June 15, 2002. Statement 143 requires that the fair value of a liability for an asset retirement obligation be recognized in the period in which it is incurred if a reasonable estimate of fair value can be made. The associated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset. The Company does not expect the adoption of this standard to have a material effect on the Company’s consolidated financial statements.

 

4

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In August 2001, the FASB issued FAS No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets”. This Statement is effective for fiscal years beginning after December 15, 2001, and replaces Statement of Financial Accounting Standards No. 121, “Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of” and also replaces the provisions of Accounting Principles Board Opinion No. 30, “Reporting Results of Operations—Reporting the Effects of Disposal of a Segment of a Business”, for disposals of segments of a business. Statement 144 requires that long-lived assets to be disposed of by sale be measured at the lower of carrying amount or fair value less cost to sell, whether reported in continuing operations or in discontinued operations. Statement 144 also broadens the reporting of discontinued operations to include all components of an entity with operations that can be distinguished from the rest of the ongoing operations of the entity. Since the provisions of this Statement are to be applied prospectively, the adoption of this new standard did not have a material effect on the Company’s consolidated financial statements.

 

In June 2002, the FASB issued FAS No. 146, “Accounting for Costs Associated with Exit or Disposal Activities”. This Statement is effective for exit or disposal activities that are initiated after December 31, 2002, and nullifies Emerging Issues Task Force Issue No. 94-3, “Liability Recognition for Certain Employee Termination Benefits and Other Costs to exit an Activity (including Certain Costs Incurred in a Restructuring).” Statement 146 requires that a liability for a cost associated with an exit or disposal activity be recognized when the liability is incurred rather than when an entity commits to an exit plan. This statement also establishes that fair value is the objective for the initial measurement of the liability. Since the provisions of this statement are to be applied prospectively, the adoption of this new standard did not have a material effect on the Company’s consolidated financial statements.

 

In October 2002, the FASB issued FAS No. 147, “Acquisitions of Certain Financial Institutions – an amendment of FASB Statements No. 72 and 144 and FASB Interpretation No. 9.” This Statement is effective October 1, 2002. FAS No. 72, “Accounting for Certain Acquisitions of Banking or Thrift Institutions”, and FASB Interpretation No. 9, “Applying APB Opinions No. 16 and 17 When a Savings and Loan Association or a Similar Institution is Acquired in a Business Combination Accounted for by the Purchase Method”, provide interpretive guidance on the application of the purchase method to acquisitions of financial institutions. This Statement removes acquisitions of financial institutions from the scope of both FAS No. 72 and Interpretation 9 and requires that those transactions be accounted for in accordance with FAS No. 141 and FAS No. 142. In addition, this Statement amends FAS 144 to include in its scope long-term customer relationship intangible assets of financial institutions such as depositor and borrower relationship intangible assets and credit cardholder intangible assets. The adoption of these new standards will not have a material effect on the Company’s consolidated financial statements.

 

In December 2002, the FASB issued FAS No. 148, “Accounting for Stock-Based Compensation – Transition and Disclosure – an amendment of FASB Statement No. 123.” This Statement amends FAS No. 123, “Accounting for Stock-Based Compensation” to provide two additional transition methods for entities that adopt the fair value method of accounting for stock-based compensation. This Statement also prohibits the use of the prospective method of transition for changes to the fair value method made in fiscal years beginning after December 15, 2003. In addition, this Statement requires new disclosures about the effect of stock-based compensation on reported results and requires more prominent disclosures about stock-based compensation by prescribing specific tabular format and by requiring disclosure in the “Summary of Significant Accounting Policies.” The adoption of this new standard will not have a material effect on the Company’s consolidated financial statements, as the Company uses the intrinsic value method of accounting for stock-based compensation.

 

(3)    RECENT DEVELOPMENTS; MERGERS, ACQUISITIONS AND DISPOSALS

 

In January 2001, BancFirst Corporation completed the acquisition of 75% of the outstanding common stock of Century Life Assurance Company (“Century Life”) from Pickard Limited Partnership, a Rainbolt family partnership. Century Life underwrites credit life insurance, credit accident and health insurance, and ordinary life insurance. The Rainbolt family is the largest shareholder of BancFirst Corporation and two members of the family are the Chairman and the CEO of BancFirst Corporation. The purchase price was $5,429. At December 31, 2000, Century Life had total assets of $22,964 and total stockholders’ equity of $6,956. The acquisition was accounted for as a book value purchase. Accordingly, the acquisition was recorded based on the book value of Century Life and the effects of the acquisition are included in the Company’s consolidated financial statements from the date of the acquisition forward. The acquisition did not have a material effect on the results of operations of the Company for 2001.

 

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(4)    SECURITIES

 

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

 

		December 31,
		2002			2001
Held for investment at cost (market value: $57,585 and $73,535, respectively)		$	55,093		$	71,876
Available for sale, at market value			510,132			472,415
Total		$	565,225		$	544,291

 

(5)    LOANS AND ALLOWANCE FOR LOAN LOSSES

 

The following is a schedule of loans outstanding by category:

 

		December 31,
		2002						2001
		Amount			Percent			Amount			Percent
Commercial and industrial		$	371,627		20.48	%		$	396,409		23.08	%
Agriculture			99,706		5.49				96,016		5.59
State and political subdivisions:
Taxable			137		0.01				152		0.01
Tax-exempt			19,467		1.07				17,602		1.02
Real Estate:
Construction			136,539		7.52				84,445		4.92
Farmland			67,447		3.72				58,080		3.38
One to four family residences			423,551		23.34				383,793		22.34
Multifamily residential properties			16,034		0.88				15,906		0.93
Commercial			384,880		21.21				358,363		20.87
Consumer			260,819		14.37				271,475		15.81
Other			34,655		1.91				35,192		2.05
Total loans		$	1,814,862		100.00	%		$	1,717,433		100.00	%
Loans held for sale (included above)		$	16,025					$	10,955

 

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 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

 

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

 

		Three Months Ended December 31,								Year Ended December 31,
		2002				2001				2002				2001
Balance at beginning of period		$	23,707			$	24,993			$	24,531			$	25,380
Charge-offs			(1,289	)			(1,069	)			(6,552	)			(3,657	)
Recoveries			296				219				1,112				1,028
Net charge-offs			(993	)			(850	)			(5,440	)			(2,629	)
Provisions charged to operations			1,653				388				5,276				1,780
Additions from acquisitions			—				—				—				—
Total additions			1,653				388				5,276				1,780
Balance at end of period		$	24,367			$	24,531			$	24,367			$	24,531

 

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

 

		Three Months Ended December 31,						Year Ended December 31,
		2002			2001			2002			2001
Commercial, financial and other		$	440		$	100		$	2,680		$	582
Real estate – construction			—			10			15			10
Real estate – mortgage			128			57			895			131
Consumer			425			683			1,850			1,906
Total		$	993		$	850		$	5,440		$	2,629

 

(6)    NONPERFORMING AND RESTRUCTURED ASSETS

 

Below is a summary of nonperforming and restructured assets:

 

		December 31,
		2002				2001
Past due over 90 days and still accruing		$	2,515			$	1,742
Nonaccrual			10,899				10,225
Restructured			497				1,348
Total nonperforming and restructured loans			13,911				13,315
Other real estate owned and repossessed assets			2,819				2,699
Total nonperforming and restructured assets		$	16,730			$	16,014
Nonperforming and restructured loans to total loans			0.77	%			0.78	%
Nonperforming and restructured assets to total assets			0.60	%			0.58	%

 

(7)    INTANGIBLE ASSETS

 

The following is a summary of intangible assets, net of accumulated amortization:

 

		December 31,
		2002			2001
Excess of cost over fair value of assets acquired		$	20,235		$	20,235
Core deposit intangibles			1,424			1,912
Trademarks			1			2
Total		$	21,660		$	22,149

 

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(8)    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 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,
					2002				2001
Tier 1 capital					$	241,185			$	216,832
Total capital					$	265,766			$	241,862
Risk-adjusted assets					$	2,005,465			$	1,955,789
Leverage ratio		3.00	%			8.69	%			7.93	%
Tier 1 capital ratio		4.00	%			12.03	%			11.09	%
Total capital ratio		8.00	%			13.25	%			12.37	%

 

To be “well capitalized” under federal bank regulatory agency definitions, a depository institution must have a leverage ratio of at least 55, a Tier 1 ratio of at least 6%, and a total capital ratio of at least 10%. As of December 31, 2002 and 2001, BancFirst was considered to be “well capitalized”. There are no conditions or events since the most recent notification of BancFirst’s capital category that management believes would change its category.

 

(9)    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 and August 2002 to increase the number of shares authorized to be repurchased to the original 300,000 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 September 30, 2002 there were 300,000 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,
		2002			2001			2002			2001
Number of shares repurchased			10,099			—			186,599			119,519
Average price of shares repurchased		$	48.31		$	—		$	39.19		$	39.34

 

(10)    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,
		2002				2001				2002				2001
Unrealized gain (loss) during the period:
Before-tax amount		$	(115	)		$	(3,061			$	10,284			$	10,559
Tax (expense) benefit			(1	)			1,038				(3,575	)			(2,899	)
Net-of-tax amount		$	(116	)		$	(2,023	)		$	6,709			$	7,660

 

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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,
		2002				2001				2002			2001
Unrealized gain (loss) on securities:
Beginning balance		$	16,015			$	11,213			$	9,190		$	1,530
Current period change			(116	)			(2,023	)			6,709			7,660
Ending balance		$	15,899			$	9,190			$	15,899		$	9,190

 

(11)    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, 2002
Basic
Income available to common stockholders		$	8,394		8,126,941		$	1.03
Effect of stock options			—		140,466
Diluted
Income available to common stockholders plus assumed exercises of stock options		$	8,394		8,267,407		$	1.02
Three Months Ended December 31, 2001
Basic
Income available to common stockholders		$	6,895		8,254,346		$	0.84
Effect of stock options			—		70,233
Diluted
Income available to common stockholders plus assumed exercises of stock options		$	6,895		8,324,579		$	0.83
Year Ended December 31, 2002
Basic
Income available to common stockholders		$	33,562		8,136,762		$	4.12
Effect of stock options			—		123,401
Diluted
Income available to common stockholders plus assumed exercises of stock options		$	33,562		8,260,163		$	4.06
Year Ended December 31, 2001
Basic
Income available to common stockholders		$	27,961		8,274,486		$	3.38
Effect of stock options			—		96,584
Diluted
Income available to common stockholders plus assumed exercises of stock options		$	27,961		8,371,070		$	3.34

 

 

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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, 2002		—		$	—
Three Months Ended December 31, 2001		73,000		$	38.90
Year Ended December 31, 2002		7,500		$	44.80
Year Ended December 31, 2001		10,000		$	40.00

 

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BANCFIRST CORPORATION

SELECTED CONSOLIDATED FINANCIAL DATA

(Unaudited)

(Dollars in thousands, except per share data)

 

		Three Months Ended December 31,								Year Ended December 31,
		2002				2001				2002				2001
Per Common Share Data
Net income – basic		$	1.03			$	0.84			$	4.12			$	3.38
Net income – diluted			1.02				0.83				4.06				3.34
Cash dividends			0.22				0.18				0.80				0.72
Performance Data
Return on average assets			1.20	%			1.02	%			1.22	%			1.05	%
Return on average stockholders’ equity			13.50				12.38				14.33				13.32
Cash dividend payout ratio			21.36				21.43				19.42				21.30
Net interest spread			3.82				3.61				3.88				3.57
Net interest margin			4.36				4.35				4.45				4.44
Efficiency ratio			62.70				68.59				63.66				68.12
							December 31,
							2002				2001
Balance Sheet Data
Book value per share						$	30.91			$	27.02
Tangible book value per share							28.25				24.34
Average loans to deposits (year-to-date)							73.89	%			72.12	%
Average earning assets to total assets (year-to-date)							90.82				90.11
Average stockholders’ equity to average assets (year-to-date)							8.53				7.86
Asset Quality Ratios
Nonperforming and restructured loans to total loans							0.78	%			0.78	%
Nonperforming and restructured assets to total assets							0.61				0.58
Allowance for loan losses to total loans							1.34				1.43
Allowance for loan losses to nonperforming and restructured loans							172.53				184.24

 

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BANCFIRST CORPORATION

CONSOLIDATED AVERAGE BALANCE SHEETS AND INTEREST MARGIN ANALYSES

(Unaudited)

Taxable Equivalent Basis (Dollars in thousands)

 

		Three Months Ended December 31,
		2002										2001
		Average Balance				Interest Income/ Expense			Average Yield/ Rate			Average Balance				Interest Income/ Expense			Average Yield/ Rate
ASSETS
Earning assets:
Loans (1)		$	1,790,193			$	30,562		6.77	%		$	1,700,998			$	33,339		7.78	%
Securities – taxable			518,789				6,538		5.00				506,967				7,031		5.50
Securities – tax exempt			42,455				685		6.40				48,280				806		6.62
Federal funds sold			181,932				651		1.42				162,777				891		2.17
Total earning assets			2,533,369				38,437		6.02				2,419,022				42,067		6.90
Nonearning assets:
Cash and due from banks			123,859										139,439
Interest receivable and other assets			145,258										143,238
Allowance for loan losses			(24,010	)									(24,871	)
Total nonearning assets			245,107										257,806
Total assets		$	2,778,476									$	2,676,828
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing liabilities:
Transaction deposits		$	360,989				624		0.69	%		$	348,663				947		1.08	%
Savings deposits			615,502				2,785		1.80				456,705				2,400		2.08
Time deposits			853,232				6,012		2.80				983,378				11,004		4.44
Short-term borrowings			33,819				119		1.40				38,843				189		1.93
Long-term borrowings			31,282				469		5.95				24,533				391		6.32
9.65% Capital Securities			25,000				612		9.71				25,000				612		9.71
Total interest-bearing liabilities			1,919,824				10,621		2.19				1,877,122				15,543		3.29
Interest-free funds:
Noninterest-bearing deposits			579,567										543,924
Interest payable and other liabilities			32,348										34,785
Stockholders’ equity			246,737										220,997
Total interest-free funds			858,652										799,706
Total liabilities and stockholders’ equity		$	2,778,476									$	2,676,828
Net interest income						$	27,816									$	26,524
Net interest spread									3.82	%									3.61	%
Net interest margin									4.36	%									4.35	%

 

(1)

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

 

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BANCFIRST CORPORATION

CONSOLIDATED AVERAGE BALANCE SHEETS AND INTEREST MARGIN ANALYSES

(Unaudited)

Taxable Equivalent Basis (Dollars in thousands)

 

		Year Ended December 31,
		2002										2001
		Average Balance				Interest Income/ Expense			Average Yield/ Rate			Average Balance				Interest Income/ Expense			Average Yield/ Rate
ASSETS
Earning assets:
Loans (1)		$	1,765,795			$	125,782		7.12	%		$	1,684,460			$	144,928		8.60	%
Securities – taxable			516,047				27,338		5.30				500,820				29,513		5.89
Securities – tax exempt			43,784				2,931		6.69				50,126				3,420		6.82
Federal funds sold			168,681				2,761		1.64				172,605				6,657		3.86
Total earning assets			2,494,307				158,813		6.37				2,408,011				184,518		7.66
Nonearning assets:
Cash and due from banks			129,813										144,320
Interest receivable and other assets			146,373										145,159
Allowance for loan losses			(24,064	)									(25,143	)
Total nonearning assets			252,122										264,336
Total assets		$	2,746,429									$	2,672,347
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing liabilities:
Transaction deposits		$	360,955				2,961		0.82	%		$	349,613				5,777		1.65	%
Savings deposits			559,210				10,892		1.95				451,156				13,514		3.00
Time deposits			900,169				29,026		3.22				1,006,792				52,718		5.24
Short-term borrowings			36,544				607		1.66				41,817				1,632		3.90
Long-term borrowings			31,144				1,876		6.02				25,638				1,623		6.33
9.65% Capital Securities			25,000				2,447		9.79				25,000				2,447		9.79
Total interest-bearing liabilities			1,913,022				47,809		2.50				1,900,016				77,711		4.09
Interest-free funds:
Noninterest bearing deposits			569,286										528,186
Interest payable and other liabilities			29,949										34,219
Stockholders’ equity			234,172										209,926
Total interest-free funds			833,407										772,331
Total liabilities and stockholders’ equity		$	2,746,429									$	2,672,347
Net interest income						$	111,004									$	106,807
Net interest spread									3.88	%									3.57	%
Net interest margin									4.45	%									4.44	%

 

(1)

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

 

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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 28, 2003								/s/    Randy P. Foraker
								(Signature) Randy P. Foraker Senior Vice President and Controller; Assistant Secretary/Treasurer (Principal Accounting Officer)

 

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