FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended March 31, 2004
OR
| ¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission File Number 0-14384
BancFirst Corporation
(Exact name of registrant as specified in charter)
| Oklahoma | 73-1221379 | |
| (State or other Jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
101 N. Broadway, Oklahoma City, Oklahoma
73102-8401
(Address of principal executive offices)
(Zip Code)
(405) 270-1086
(Registrant’s telephone number, including area code)
(Former name, former address and former fiscal
year, if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨.
Indicate by checkmark whether the registrant is an accelerate filer (as defined in Rule 12b-2 of the Exchange Act). Yes x No ¨.
As of April 30, 2004 there were 7,838,298 shares of the registrant’s Common Stock outstanding.
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements.
BANCFIRST CORPORATION
CONSOLIDATED BALANCE SHEET
(Unaudited)
(Dollars in thousands)
| March 31, |
December 31, 2003 |
|||||||||||
| 2004 |
2003 |
|||||||||||
| ASSETS |
||||||||||||
| Cash and due from banks |
$ | 129,806 | $ | 143,843 | $ | 155,367 | ||||||
| Interest-bearing deposits with banks |
3,363 | 10,037 | 3,761 | |||||||||
| Federal funds sold |
253,000 | 193,000 | 105,809 | |||||||||
| Securities (market value: $582,975, $548,322, and $566,461, respectively) |
581,059 | 545,991 | 564,735 | |||||||||
| Loans: |
||||||||||||
| Total loans (net of unearned interest) |
1,940,883 | 1,819,602 | 1,947,223 | |||||||||
| Allowance for loan losses |
(26,403 | ) | (24,694 | ) | (26,148 | ) | ||||||
| Loans, net |
1,914,480 | 1,794,908 | 1,921,075 | |||||||||
| Premises and equipment, net |
67,201 | 59,881 | 66,423 | |||||||||
| Other real estate owned |
3,401 | 2,800 | 3,428 | |||||||||
| Intangible assets, net |
4,542 | 1,306 | 4,726 | |||||||||
| Goodwill |
27,881 | 20,235 | 27,611 | |||||||||
| Accrued interest receivable |
18,909 | 19,264 | 19,006 | |||||||||
| Other assets |
48,173 | 47,027 | 49,428 | |||||||||
| Total assets |
$ | 3,051,815 | $ | 2,838,292 | $ | 2,921,369 | ||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||||||
| Deposits: |
||||||||||||
| Noninterest-bearing |
$ | 753,102 | $ | 625,978 | $ | 720,366 | ||||||
| Interest-bearing |
1,919,918 | 1,851,777 | 1,865,324 | |||||||||
| Total deposits |
2,673,020 | 2,477,755 | 2,585,690 | |||||||||
| Short-term borrowings |
22,779 | 25,002 | 16,610 | |||||||||
| Accrued interest payable |
2,960 | 4,139 | 3,741 | |||||||||
| Other liabilities |
25,731 | 29,043 | 21,546 | |||||||||
| Long-term borrowings |
9,585 | 32,480 | 11,063 | |||||||||
| Junior subordinated debentures |
51,804 | 25,000 | 25,000 | |||||||||
| Minority interest |
2,373 | 2,299 | 2,347 | |||||||||
| Total liabilities |
2,788,252 | 2,595,718 | 2,665,997 | |||||||||
| Commitments and contingent liabilities |
||||||||||||
| Stockholders’ equity: |
||||||||||||
| Common stock, $1.00 par (shares issued and outstanding: 7,830,040, 7,808,281 and 7,822,637, respectively) |
7,830 | 7,807 | 7,823 | |||||||||
| Capital surplus |
60,993 | 59,241 | 60,819 | |||||||||
| Retained earnings |
183,128 | 160,590 | 176,893 | |||||||||
| Accumulated other comprehensive income, net of income tax of $5,567, $7,371 and $5,128, respectively |
11,612 | 14,936 | 9,837 | |||||||||
| Total stockholders’ equity |
263,563 | 242,574 | 255,372 | |||||||||
| Total liabilities and stockholders’ equity |
$ | 3,051,815 | $ | 2,838,292 | $ | 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 March 31, |
||||||||
| 2004 |
2003 |
|||||||
| INTEREST INCOME |
||||||||
| Loans, including fees |
$ | 28,550 | $ | 29,181 | ||||
| Securities: |
||||||||
| Taxable |
5,081 | 6,146 | ||||||
| Tax-exempt |
390 | 431 | ||||||
| Federal funds sold |
490 | 445 | ||||||
| Interest-bearing deposits with banks |
18 | 17 | ||||||
| Total interest income |
34,529 | 36,220 | ||||||
| INTEREST EXPENSE |
||||||||
| Deposits |
5,571 | 8,331 | ||||||
| Short-term borrowings |
79 | 68 | ||||||
| Long-term borrowings |
157 | 469 | ||||||
| Junior subordinated debentures |
802 | 612 | ||||||
| Total interest expense |
6,609 | 9,480 | ||||||
| Net interest income |
27,920 | 26,740 | ||||||
| Provision for loan losses |
720 | 783 | ||||||
| Net interest income after provision for loan losses |
27,200 | 25,957 | ||||||
| NONINTEREST INCOME |
||||||||
| Trust revenue |
1,034 | 1,049 | ||||||
| Service charges on deposits |
6,612 | 6,064 | ||||||
| Securities transactions |
— | 616 | ||||||
| Income from sales of loans |
266 | 402 | ||||||
| Other |
3,790 | 3,648 | ||||||
| Total noninterest income |
11,702 | 11,779 | ||||||
| NONINTEREST EXPENSE |
||||||||
| Salaries and employee benefits |
15,805 | 14,015 | ||||||
| Occupancy and fixed assets expense, net |
1,622 | 1,414 | ||||||
| Depreciation |
1,370 | 1,235 | ||||||
| Amortization of intangible assets |
185 | 146 | ||||||
| Data processing services |
655 | 552 | ||||||
| Net (income) expense from other real estate owned |
80 | (24 | ) | |||||
| Marketing and business promotion |
715 | 650 | ||||||
| Other |
5,760 | 6,600 | ||||||
| Total noninterest expense |
26,192 | 24,588 | ||||||
| Income before taxes |
12,710 | 13,148 | ||||||
| Income tax expense |
(4,519 | ) | (4,550 | ) | ||||
| Net income |
8,191 | 8,598 | ||||||
| Other comprehensive income, net of tax: |
||||||||
| Unrealized gains (losses) on securities |
1,775 | (563 | ) | |||||
| Reclassification adjustment for gains included in net income |
— | (400 | ) | |||||
| Comprehensive income |
$ | 9,966 | $ | 7,635 | ||||
| NET INCOME PER COMMON SHARE |
||||||||
| Basic |
$ | 1.05 | $ | 1.09 | ||||
| Diluted |
$ | 1.03 | $ | 1.07 | ||||
The accompanying notes are an integral part of these consolidated financial statements.
3
BANCFIRST CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
| Three Months Ended March 31, |
||||||||
| 2004 |
2003 |
|||||||
| CASH FLOWS FROM OPERATING ACTIVITIES |
$ | 14,410 | $ | 7,649 | ||||
| INVESTING ACTIVITIES |
||||||||
| Purchases of securities: |
||||||||
| Held for investment |
— | (707 | ) | |||||
| Available for sale |
(52,592 | ) | (43,620 | ) | ||||
| Maturities of securities: |
||||||||
| Held for investment |
2,878 | 6,592 | ||||||
| Available for sale |
33,964 | 44,804 | ||||||
| Proceeds from sales and calls of securities: |
||||||||
| Held for investment |
771 | 434 | ||||||
| Available for sale |
372 | 10,632 | ||||||
| Net (increase) in federal funds sold |
(147,191 | ) | (59,000 | ) | ||||
| Purchases of loans |
(381 | ) | (6,318 | ) | ||||
| Proceeds from sales of loans |
26,116 | 47,840 | ||||||
| Net other increase in loans |
(20,555 | ) | (47,748 | ) | ||||
| Purchases of premises and equipment |
(2,235 | ) | (1,315 | ) | ||||
| Proceeds from the sale of other real estate owned and repossessed assets |
1,434 | 2,042 | ||||||
| Net cash used by investing activities |
(157,419 | ) | (46,364 | ) | ||||
| FINANCING ACTIVITIES |
||||||||
| Net increase in demand, transaction and savings deposits |
93,132 | 92,613 | ||||||
| Net decrease in certificates of deposits |
(5,802 | ) | (43,506 | ) | ||||
| Net increase in short-term borrowings |
6,169 | 559 | ||||||
| Net decrease in long-term borrowings |
(1,478 | ) | (1,607 | ) | ||||
| Issuance of junior subordinated debentures |
26,804 | — | ||||||
| Issuance of common stock |
181 | 9 | ||||||
| Acquisition of common stock |
— | (14,860 | ) | |||||
| Cash dividends paid |
(1,956 | ) | (1,718 | ) | ||||
| Net cash provided by financing activities |
117,050 | |||||||