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EX-31.1 - EX-31.1 - BANCFIRST CORP /OK/banf-ex311_7.htm
EX-32.2 - EX-32.2 - BANCFIRST CORP /OK/banf-ex322_9.htm
EX-31.2 - EX-31.2 - BANCFIRST CORP /OK/banf-ex312_12.htm
EX-10.5 - EX-10.5 - BANCFIRST CORP /OK/banf-ex105_238.htm
EX-32.1 - EX-32.1 - BANCFIRST CORP /OK/banf-ex321_10.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

x

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OFTHE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2016

OR

o

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OFTHE 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

 

(I.R.S. Employer

incorporation or organization)

 

Identification No.)

 

101 N. Broadway, Oklahoma City, Oklahoma

 

73102-8405

(Address of principal executive offices)

 

(Zip Code)

(405) 270-1086

(Registrant’s telephone number, including area code)

N/A

(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  o.

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (sec. 232-405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  o.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer.  See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

o

Accelerated filer

x

 

 

 

 

Non-accelerated filer

o  (Do not check if a smaller reporting company)

Smaller reporting company

o

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act).    Yes  o    No  x

As of April 29, 2016 there were 15,546,253 shares of the registrant’s Common Stock outstanding.

 

 

 

 


PART I – FINANCIAL INFORMATION

 

 

Item 1. Financial Statements.

BANCFIRST CORPORATION

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

 

 

 

March 31,

 

 

December 31,

 

 

 

 

2016

 

 

 

2015

 

 

 

(unaudited)

 

 

(see Note 1)

 

ASSETS

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

169,969

 

 

$

203,364

 

Interest-bearing deposits with banks

 

 

1,498,356

 

 

 

1,394,813

 

Securities (fair value: $498,041 and $553,010, respectively)

 

 

497,986

 

 

 

552,949

 

Loans held for sale

 

 

7,626

 

 

 

13,725

 

Loans (net of unearned interest)

 

 

4,275,112

 

 

 

4,232,048

 

Allowance for loan losses

 

 

(44,571

)

 

 

(41,666

)

Loans, net of allowance for loan losses

 

 

4,230,541

 

 

 

4,190,382

 

Premises and equipment, net

 

 

127,093

 

 

 

126,813

 

Other real estate owned

 

 

3,963

 

 

 

7,984

 

Intangible assets, net

 

 

15,093

 

 

 

15,695

 

Goodwill

 

 

54,042

 

 

 

54,042

 

Accrued interest receivable and other assets

 

 

136,269

 

 

 

133,062

 

Total assets

 

$

6,740,938

 

 

$

6,692,829

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

Noninterest-bearing

 

$

2,413,700

 

 

$

2,409,769

 

Interest-bearing

 

 

3,597,172

 

 

 

3,563,589

 

Total deposits

 

 

6,010,872

 

 

 

5,973,358

 

Short-term borrowings

 

 

1,300

 

 

 

500

 

Accrued interest payable and other liabilities

 

 

34,146

 

 

 

31,502

 

Junior subordinated debentures

 

 

31,959

 

 

 

31,959

 

Total liabilities

 

 

6,078,277

 

 

 

6,037,319

 

 

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

 

 

Senior preferred stock, $1.00 par; 10,000,000 shares authorized; none issued

 

 

 

 

 

 

Cumulative preferred stock, $5.00 par; 900,000 shares authorized; none issued

 

 

 

 

 

 

Common stock, $1.00 par, 20,000,000 shares authorized; shares issued and

   outstanding: 15,527,804 and 15,597,446, respectively

 

 

15,528

 

 

 

15,597

 

Capital surplus

 

 

103,978

 

 

 

102,865

 

Retained earnings

 

 

541,098

 

 

 

535,521

 

Accumulated other comprehensive income, net of income tax of $1,297

and $962, respectively

 

 

2,057

 

 

 

1,527

 

Total stockholders' equity

 

 

662,661

 

 

 

655,510

 

Total liabilities and stockholders' equity

 

$

6,740,938

 

 

$

6,692,829

 

 

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

 

2


BANCFIRST CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(Dollars in thousands, except per share data)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

 

2016

 

 

 

2015

 

INTEREST INCOME

 

 

 

 

 

 

 

 

Loans, including fees

 

$

50,195

 

 

$

45,949

 

Securities:

 

 

 

 

 

 

 

 

Taxable

 

 

1,327

 

 

 

1,399

 

Tax-exempt

 

 

255

 

 

 

246

 

Interest-bearing deposits with banks

 

 

1,802

 

 

 

1,062

 

Total interest income

 

 

53,579

 

 

 

48,656

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

Deposits

 

 

3,080

 

 

 

2,538

 

Short-term borrowings

 

 

1

 

 

 

1

 

Junior subordinated debentures

 

 

522

 

 

 

491

 

Total interest expense

 

 

3,603

 

 

 

3,030

 

Net interest income

 

 

49,976

 

 

 

45,626

 

Provision for loan losses

 

 

4,103

 

 

 

1,334

 

Net interest income after provision for loan losses

 

 

45,873

 

 

 

44,292

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

Trust revenue

 

 

2,465

 

 

 

2,342

 

Service charges on deposits

 

 

14,710

 

 

 

13,352

 

Securities transactions (includes accumulated other comprehensive income reclassifications of $100 and $606, respectively)

 

 

100

 

 

 

1,729

 

Income from sales of loans

 

 

562

 

 

 

440

 

Insurance commissions

 

 

4,135

 

 

 

4,068

 

Cash management

 

 

2,318

 

 

 

1,819

 

Gain on sale of other assets

 

 

4

 

 

 

40

 

Other

 

 

1,323

 

 

 

1,506

 

Total noninterest income

 

 

25,617

 

 

 

25,296

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

29,357

 

 

 

27,513

 

Occupancy, net

 

 

2,827

 

 

 

2,835

 

Depreciation

 

 

2,530

 

 

 

2,464

 

Amortization of intangible assets

 

 

581

 

 

 

444

 

Data processing services

 

 

1,215

 

 

 

1,117

 

Net expense from other real estate owned

 

 

(1,141

)

 

 

314

 

Marketing and business promotion

 

 

1,855

 

 

 

1,679

 

Deposit insurance

 

 

839

 

 

 

826

 

Other

 

 

8,228

 

 

 

7,731

 

Total noninterest expense

 

 

46,291

 

 

 

44,923

 

Income before taxes

 

 

25,199

 

 

 

24,665

 

Income tax expense

 

 

8,620

 

 

 

8,406

 

Net income

 

$

16,579

 

 

$

16,259

 

NET INCOME PER COMMON SHARE

 

 

 

 

 

 

 

 

Basic

 

$

1.07

 

 

$

1.05

 

Diluted

 

$

1.05

 

 

$

1.03

 

OTHER COMPREHENSIVE INCOME

 

 

 

 

 

 

 

 

Unrealized gains on securities, net of tax of $(374) and $(700), respectively

 

 

591

 

 

 

1,111

 

Reclassification adjustment for gains included in net income, net of tax of $39 and $234, respectively

 

 

(61

)

 

 

(372

)

Other comprehensive gains, net of tax of $(335) and $(466), respectively

 

 

530

 

 

 

739

 

Comprehensive income

 

$

17,109

 

 

$

16,998

 

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

3


BANCFIRST CORPORATION

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

(Dollars in thousands)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2016

 

 

2015

 

COMMON STOCK

 

 

 

 

 

 

 

 

Issued at beginning of period

 

$

15,597

 

 

$

15,504

 

Shares issued

 

 

31

 

 

 

8

 

Shares acquired and canceled

 

 

(100

)

 

 

 

Issued at end of period

 

$

15,528

 

 

$

15,512

 

CAPITAL SURPLUS

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

102,865

 

 

$

96,841

 

Common stock issued

 

 

871

 

 

 

236

 

Tax effect of stock options

 

 

(209

)

 

 

(64

)

Stock-based compensation arrangements

 

 

451

 

 

 

464

 

Balance at end of period

 

$

103,978

 

 

$

97,477

 

RETAINED EARNINGS

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

535,521

 

 

$

492,776

 

Net income

 

 

16,579

 

 

 

16,259

 

Dividends on common stock ($0.36 and $0.34 per share, respectively)

 

 

(5,579

)

 

 

(5,277

)

Common stock acquired and canceled

 

 

(5,423

)

 

 

 

Balance at end of period

 

$

541,098

 

 

$

503,758

 

ACCUMULATED OTHER COMPREHENSIVE INCOME

 

 

 

 

 

 

 

 

Unrealized gains on securities:

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

1,527

 

 

$

4,193

 

Net change

 

 

530

 

 

 

739

 

Balance at end of period

 

$

2,057

 

 

$

4,932

 

Total stockholders’ equity

 

$

662,661

 

 

$

621,679

 

 

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

 

4


BANCFIRST CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOW

(Unaudited)

(Dollars in thousands)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2016

 

 

2015

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

Net income

 

$

16,579

 

 

$

16,259

 

Adjustments to reconcile to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Provision for loan losses

 

 

4,103

 

 

 

1,334

 

Depreciation and amortization

 

 

3,111

 

 

 

2,908

 

Net amortization of securities premiums and discounts

 

 

148

 

 

 

148

 

Realized securities gains

 

 

(100

)

 

 

(1,729

)

Gain on sales of loans

 

 

(562

)

 

 

(440

)

Cash receipts from the sale of loans originated for sale

 

 

40,271

 

 

 

36,163

 

Cash disbursements for loans originated for sale

 

 

(33,610

)

 

 

(37,393

)

Deferred income tax benefit

 

 

(829

)

 

 

(586

)

(Gain)/loss on other assets

 

 

(1,222

)

 

 

207

 

Increase in interest receivable

 

 

(176

)

 

 

(356

)

Increase/(decrease) in interest payable

 

 

13

 

 

 

(20

)

Amortization of stock-based compensation arrangements

 

 

451

 

 

 

464

 

Other, net

 

 

300

 

 

 

5,855

 

Net cash provided by operating activities

 

$

28,477

 

 

$

22,814

 

INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

Net increase in federal funds sold

 

 

 

 

(1,000

)

Purchases of available for sale securities

 

 

 

 

(30,740

)

Proceeds from maturities, calls and paydowns of held for investment securities

 

 

410

 

 

 

311

 

Proceeds from maturities, calls and paydowns of available for sale securities

 

 

55,071

 

 

 

6,144

 

Proceeds from sales of available for sale securities

 

 

299

 

 

 

1,729

 

Net change in loans

 

 

(45,010

)

 

 

3,613

 

Purchases of premises, equipment and computer software

 

 

(2,939

)

 

 

(4,107

)

Proceeds from the sale of other assets

 

 

5,971

 

 

 

1,955

 

Net cash provided by (used in) investing activities

 

 

13,802

 

 

 

(22,095

)

FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

Net change in deposits

 

 

37,514

 

 

 

(20,903

)

Net increase/(decrease) in short-term borrowings

 

 

800

 

 

 

(1,939

)

Issuance of common stock, net

 

 

693

 

 

 

180

 

Common stock acquired

 

 

(5,523

)

 

 

Cash dividends paid

 

 

(5,615

)

 

 

(5,271

)

Net cash provided by (used in) financing activities

 

 

27,869

 

 

 

(27,933

)

Net increase/(decrease) in cash, due from banks and interest-bearing deposits

 

 

70,148

 

 

 

(27,214

)

Cash, due from banks and interest-bearing deposits at the beginning of the period

 

 

1,598,177

 

 

 

1,913,895

 

Cash, due from banks and interest-bearing deposits at the end of the period

 

$

1,668,325

 

 

$

1,886,681

 

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

 

 

 

 

 

 

 

 

Cash paid during the period for interest

 

$

3,591

 

 

$

3,050

 

Cash paid during the period for income taxes

 

$

1,050

 

 

$

600

 

Noncash investing and financing activities:

 

 

 

 

 

 

 

 

Unpaid common stock dividends declared

 

$

5,579

 

 

$

5,271

 

 

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

 

5


BANCFIRST CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

 

 

(1)

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting and reporting policies of BancFirst Corporation and its subsidiaries (the “Company”) conform to accounting principles generally accepted in the United State of America (U.S. GAAP) and general practice within the banking industry. A summary of significant accounting policies can be found in Note (1) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.

Basis of Presentation

The accompanying unaudited interim consolidated financial statements include the accounts of BancFirst Corporation, Council Oak Partners, LLC, BancFirst Insurance Services, Inc. and BancFirst and its subsidiaries. The principal operating subsidiaries of BancFirst are Council Oak Investment Corporation, Council Oak Real Estate, Inc. and BancFirst Agency, Inc.  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 unaudited interim consolidated financial statements.

The accompanying unaudited interim consolidated financial statements and notes are presented in accordance with the instructions for Form 10-Q. The information contained in the financial statements and footnotes included in BancFirst Corporation’s Annual Report on Form 10-K for the year ended December 31, 2015, should be referred to in connection with these unaudited interim consolidated financial statements. Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period.

The unaudited interim consolidated 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, 2015, the date of the most recent annual report.

Reclassifications

Certain items in prior financial statements have been reclassified to conform to the current presentation. Such reclassifications had no effect on previously reported cash flows, stockholders’ equity or comprehensive income.

Use of Estimates in the Preparation of Financial Statements

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, the fair value of financial instruments and the valuation of intangibles. Such estimates and assumptions may change over time and actual amounts realized may differ from those reported.

Recent Accounting Pronouncements

In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” Under ASU 2016-09 all excess tax benefits and tax deficiencies related to share-based payment awards should be recognized as income tax expense or benefit in the income statement during the period in which they occur. Previously, such amounts were recorded in the pool of excess tax benefits included in additional paid-in capital, if such pool was available. Because excess tax benefits are no longer recognized in additional paid-in capital, the assumed proceeds from applying the treasury stock method when computing earnings per share should exclude the amount of excess tax benefits that would have previously been recognized in additional paid-in capital. Additionally, excess tax benefits should be classified along with other income tax cash flows as an operating activity rather than a financing activity, as was previously the case. ASU 2016-09 also provides that an entity can make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest (current GAAP) or account for forfeitures when they occur. ASU 2016-09 changes the threshold to qualify for equity classification (rather than as a liability) to permit withholding up to the maximum statutory tax rates (rather than the minimum as was previously the case) in the applicable jurisdictions. ASU 2016-09 will be effective on January 1, 2017 and is not expected to have a significant impact on the Company’s financial statements.

6


In February 2016, the FASB issued ASU No. 2016-02, “Leases - (Topic 842).” ASU 2016-02 requires that lessees recognize on the balance sheet the assets and liabilities for the rights and obligations created by leases. The amendments are effective for annual periods, and interim reporting periods within those annual periods, beginning after December 15, 2018. Early adoption is permitted. Adoption of ASU 2016-02 is not expected to have a significant effect on the Company’s financial statements.

In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments - Overall (Subtopic 825-10).” ASU 2016-01 require all equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in the fair value recognized through net income. In addition, the amendment will require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. The amendments are effective for annual periods, and interim reporting periods within those annual periods, beginning after December 15, 2017. Early adoption is not permitted. Adoption of ASU 2016-01 is not expected to have a significant effect on the Company’s financial statements.

In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements – Going Concern (Topic 205-40).”  ASU 2014-15 provides guidance on management’s responsibility in evaluating whether there is substantial doubt about the Company’s ability to continue as a going concern and related footnote disclosures. For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about the Company’s ability to continue as a going concern within one year from the date the financial statements are issued.  The amendments are effective for annual periods, and interim reporting periods within those annual periods, beginning after December 15, 2016. Early adoption is permitted. Adoption of ASU 2014-15 is not expected to have a significant effect on the Company’s financial statements.

 

 

(2)

RECENT DEVELOPMENTS, INCLUDING MERGERS AND ACQUISITIONS

 

On October 8, 2015, the Company completed its acquisition of CSB Bancshares Inc. and its subsidiary bank, Bank of Commerce, with locations in Yukon, Mustang and El Reno, Oklahoma. Bank of Commerce had approximately $196 million in total assets, $147 million in loans, $175 million in deposits and $22 million in equity capital. The acquisition was accounted for under the acquisition method and the Company acquired 100% of the voting interest. Bank of Commerce operated as a subsidiary of BancFirst Corporation until it was merged into BancFirst on November 13, 2015. As a result of the acquisition, the Company recorded a core deposit intangible of approximately $7.1 million and goodwill of approximately $9.4 million. The effect of this acquisition was included in the consolidated financial statements of the Company from the date of acquisition forward. The acquisition did not have a material effect on the Company’s consolidated financial statements. The acquisition of CSB Bancshares Inc. and its subsidiary bank, Bank of Commerce will complement our community banking strategy by adding two communities to our banking network throughout Oklahoma.

 

During the quarter ended March 31, 2016, the Company had gains on the sale of other real estate owned totaling $1.2 million that is included in net expense from other real estate owned on the consolidated statements of comprehensive income.

 

 

(3)

SECURITIES

The following table summarizes securities held for investment and securities available for sale:

 

 

 

March 31, 2016

 

 

December 31, 2015

 

 

 

(Dollars in thousands)

 

Held for investment, at cost (fair value: $8,434 and $8,850, respectively)

 

$

8,379

 

 

$

8,789

 

Available for sale, at fair value

 

 

489,607

 

 

 

544,160

 

Total

 

$

497,986

 

 

$

552,949

 

7


 

The following table summarizes the amortized cost and estimated fair values of securities held for investment:

 

 

 

 

 

 

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Estimated

Fair

Value

 

March 31, 2016

 

(Dollars in thousands)

 

Mortgage backed securities (1)

 

$

323

 

 

$

25

 

 

$

 

 

$

348

 

States and political subdivisions

 

 

7,556

 

 

 

30

 

 

 

 

 

 

7,586

 

Other securities

 

 

500

 

 

 

 

 

 

 

 

 

500

 

Total

 

$

8,379

 

 

$

55

 

 

$

 

 

$

8,434

 

December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage backed securities (1)

 

$

347

 

 

$

25

 

 

$

 

 

$

372

 

States and political subdivisions

 

 

7,942

 

 

 

36

 

 

 

 

 

 

7,978

 

Other securities

 

 

500

 

 

 

 

 

 

 

 

 

500

 

Total

 

$

8,789

 

 

$

61

 

 

$

 

 

$

8,850

 

The following table summarizes the amortized cost and estimated fair values of securities available for sale:

 

 

 

 

 

 

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Estimated

Fair

Value

 

March 31, 2016

 

(Dollars in thousands)

 

U.S. treasuries

 

$

279,020

 

 

$

1,695

 

 

$

 

 

$

280,715

 

U.S. federal agencies

 

 

128,391

 

 

 

539

 

 

 

(76

)

 

 

128,854

 

Mortgage backed securities (1)

 

 

21,444

 

 

 

415

 

 

 

(550

)

 

 

21,309

 

States and political subdivisions

 

 

47,904

 

 

 

1,473

 

 

 

(85

)

 

 

49,292

 

Other securities (2)

 

 

9,494

 

 

 

125

 

 

 

(182

)

 

 

9,437

 

Total

 

$

486,253

 

 

$

4,247

 

 

$

(893

)

 

$

489,607

 

December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasuries

 

$

328,965

 

 

$

776

 

 

$

(45

)

 

$

329,696

 

U.S. federal agencies

 

 

131,522

 

 

 

527

 

 

 

(153

)

 

 

131,896

 

Mortgage backed securities (1)

 

 

21,973

 

 

 

425

 

 

 

(543

)

 

 

21,855

 

States and political subdivisions

 

 

49,521

 

 

 

1,447

 

 

 

(48

)

 

 

50,920

 

Other securities (2)

 

 

9,689

 

 

 

249

 

 

 

(145

)

 

 

9,793

 

Total

 

$

541,670

 

 

$

3,424

 

 

$

(934

)

 

$

544,160

 

 

 

(1)

Primarily consists of FHLMC, FNMA, GNMA and mortgage backed securities through U.S. agencies.

 

(2)

Primarily consists of equity securities.

 

Realized gains are reported as securities transactions within the noninterest income section of the consolidated statement of comprehensive income. In January 2015, Council Oak Investment Corporation, a wholly-owned subsidiary of BancFirst, recognized a pretax gain of approximately $1.7 million on one of its investments.

 

8


The maturities of securities held for investment and available for sale are summarized in the following table using contractual maturities. Actual maturities may differ from contractual maturities due to obligations that are called or prepaid. For purposes of the maturity table, mortgage-backed securities, which are not due at a single maturity date, have been presented at their contractual maturity.

 

 

 

March 31, 2016

 

 

December 31, 2015

 

 

 

Amortized

Cost

 

 

Estimated

Fair

Value

 

 

Amortized

Cost

 

 

Estimated

Fair

Value

 

 

 

(Dollars in thousands)

 

Held for Investment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contractual maturity of debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Within one year

 

$

4,983

 

 

$

4,990

 

 

$

5,168

 

 

$

5,174

 

After one year but within five years

 

 

2,594

 

 

 

2,617

 

 

 

2,800

 

 

 

2,829

 

After five years but within ten years

 

 

778

 

 

 

802

 

 

 

795

 

 

 

319

 

After ten years

 

 

24

 

 

 

25

 

 

 

26

 

 

 

528

 

Total

 

$

8,379

 

 

$

8,434

 

 

$

8,789

 

 

$

8,850

 

Available for Sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contractual maturity of debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Within one year

 

$

224,616

 

 

$

224,814

 

 

$

272,820

 

 

$

272,779

 

After one year but within five years

 

 

175,071

 

 

 

177,377

 

 

 

178,617

 

 

 

180,145

 

After five years but within ten years

 

 

7,794

 

 

 

8,359

 

 

 

8,483

 

 

 

9,075

 

After ten years

 

 

72,746

 

 

 

73,052

 

 

 

75,522

 

 

 

75,853

 

Total debt securities

 

 

480,227

 

 

 

483,602

 

 

 

535,442

 

 

 

537,852

 

Equity securities

 

 

6,026

 

 

 

6,005

 

 

 

6,228

 

 

 

6,308

 

Total

 

$

486,253

 

 

$

489,607

 

 

$

541,670

 

 

$

544,160

 

The following table is a summary of the Company’s book value of securities that were pledged as collateral for public funds on deposit, repurchase agreements and for other purposes as required or permitted by law:

 

 

 

March 31, 2016

 

 

December 31, 2015

 

 

 

(Dollars in thousands)

 

Book value of pledged securities

 

$

458,893

 

 

$

493,540

 

 

 

(4)

LOANS AND ALLOWANCE FOR LOAN LOSSES

The following is a schedule of loans outstanding by category:

 

 

 

March 31, 2016

 

 

December 31, 2015

 

 

 

Amount

 

 

Percent

 

 

Amount

 

 

Percent

 

 

 

(Dollars in thousands)

 

Commercial and financial:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

790,156

 

 

 

18.48

%

 

$

795,803

 

 

 

18.80

%

Oil & gas production and equipment

 

 

86,524

 

 

 

2.02

 

 

 

87,304

 

 

 

2.06

 

Agriculture

 

 

149,442

 

 

 

3.50

 

 

 

150,620

 

 

 

3.56

 

State and political subdivisions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

17,628

 

 

 

0.41

 

 

 

17,605

 

 

 

0.42

 

Tax-exempt

 

 

36,177

 

 

 

0.85

 

 

 

33,575

 

 

 

0.79

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction

 

 

401,330

 

 

 

9.39

 

 

 

403,664

 

 

 

9.54

 

Farmland

 

 

189,934

 

 

 

4.44

 

 

 

184,707

 

 

 

4.36

 

One to four family residences

 

 

825,357

 

 

 

19.31

 

 

 

821,251

 

 

 

19.41

 

Multifamily residential properties

 

 

62,189

 

 

 

1.45

 

 

 

65,477

 

 

 

1.55

 

Commercial

 

 

1,406,204

 

 

 

32.89

 

 

 

1,356,430

 

 

 

32.05

 

Consumer

 

 

276,463