FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 --------------------------------- QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarterly Period Ended September 30, 1995 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, Suite 200 Oklahoma City, Oklahoma 73102-8401 (Address of principal executive offices) (405) 270-1000 (Registrant's area code and telephone number) 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 . ---- ---- As of October 31, 1995, there were 6,215,624 shares of Common Stock outstanding.
FORM 10-Q CROSS-REFERENCE INDEX ITEM PART I. FINANCIAL INFORMATION PAGE - ---- ------------------------------------------------- ----- 1. Financial Statements 1 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 7 PART II. OTHER INFORMATION ---------------------------------------------- 1. Legal Proceedings Not Applicable 2. Changes in Securities Not Applicable 3. Defaults Upon Senior Securities Not Applicable 4. Submission of Matters to a Vote of Security Holders Not Applicable 5. Other Information Not Applicable 6. Exhibits and Reports on Form 8-K 11 Signatures 12
PART I. FINANCIAL INFORMATION ------------------------------
BANCFIRST CORPORATION CONSOLIDATED BALANCE SHEET (Dollars in thousands) <TABLE> <CAPTION> SEPTEMBER 30, DECEMBER 31, ------------------------ 1995 1994 1994 --------- --------- ------------ <S> <C> <C> <C> ASSETS Cash and due from banks $ 57,919 $ 59,033 $ 53,564 Interest-bearing deposits with banks 65 -- -- Securities: Held for investment, at cost (market value: $42,643, $22,189 and $20,395, respectively) 42,148 22,333 20,779 Available for sale, at market value 213,201 209,786 202,265 Federal funds sold 17,368 24,965 28,260 Loans: Total Loans (net of unearned interest) 604,642 510,106 522,314 Allowance for possible loan losses (10,338) (9,585) (9,729) --------- --------- --------- Loans, net 594,304 500,521 512,585 Premises and equipment, net 27,729 26,713 26,462 Other real estate owned 2,149 2,091 2,183 Intangible assets, net 8,195 8,267 7,960 Accrued interest receivable 10,293 8,387 8,518 Other assets 7,858 9,917 10,339 --------- --------- --------- Total assets $ 981,229 $ 872,013 $ 872,915 --------- --------- --------- --------- --------- --------- LIABILITIES AND STOCKHOLDERS' EQUITY Deposits: Noninterest-bearing $ 173,346 $ 167,411 $ 168,426 Interest-bearing 693,684 617,601 616,425 --------- --------- --------- Total deposits 867,030 785,012 784,851 Securities sold under repurchase agreements and other short-term borrowings 11,532 34 117 Long-term borrowings 810 -- -- Accrued interest payable 3,434 2,197 2,089 Other liabilities 3,629 3,681 3,897 --------- --------- --------- Total liabilities 886,435 790,924 790,954 --------- --------- --------- Commitments and contingent liabilities Stockholders' equity: Common stock (shares issued: 6,210,624, 6,202,814 and 6,202,814, respectively) 6,211 6,203 6,203 Capital surplus 34,408 34,259 34,259 Retained earnings 53,293 43,089 45,611 Unrealized securities gains (losses), net of tax 882 (2,462) (4,112) --------- --------- --------- Total stockholders' equity 94,794 81,089 81,961 --------- --------- --------- Total liabilities and stockholders' equity $ 981,229 $ 872,013 $ 872,915 --------- --------- --------- --------- --------- --------- </TABLE> See accompanying notes to consolidated financial statements. 1
BANCFIRST CORPORATION CONSOLIDATED STATEMENT OF INCOME (Dollars in thousands, except per share data) <TABLE> <CAPTION> THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, ------------------------- ------------------------- 1995 1994 1995 1994 ---------- ---------- ---------- ---------- <S> <C> <C> <C> <C> INTEREST INCOME Loans, including fees $ 15,060 $ 11,763 $ 42,711 $ 33,017 Interest-bearing deposits with banks 1 -- 9 -- Securities: Taxable 3,585 3,168 10,184 9,223 Tax-exempt 151 150 446 457 Federal funds sold 363 360 1,226 1,008 ---------- ---------- ---------- ---------- Total interest income 19,160 15,441 54,576 43,705 ---------- ---------- ---------- ---------- INTEREST EXPENSE Deposits 7,809 5,322 22,329 14,951 Securities sold under repurchase agreements and other short-term borrowings 20 4 58 6 Line of credit -- 10 -- 29 Total interest expense 7,829 5,336 22,387 14,996 ---------- ---------- ---------- ---------- Net interest income 11,331 10,105 32,189 28,709 Provision for possible loan losses 150 321 408 49 ---------- ---------- ---------- ---------- Net interest income after provision for possible loan losses 11,181 9,784 31,781 28,660 ---------- ---------- ---------- ---------- NONINTEREST INCOME Service charges on deposits 1,987 1,943 5,909 5,727 Securities transactions 48 (1) 111 (1) Other 1,145 857 3,153 2,688 ---------- ---------- ---------- ---------- Total noninterest income 3,180 2,799 9,173 8,414 ---------- ---------- ---------- ---------- NONINTEREST EXPENSE Salaries and employee benefits 5,141 4,524 14,970 13,134 Occupancy and fixed assets expense, net 550 516 1,475 1,293 Depreciation 431 440 1,374 1,288 Amortization 397 325 1,071 949 Data processing services 284 325 878 1,061 Net (income) expense from other real estate owned 16 (45) 50 (370) Other 1,806 2,196 6,128 6,343 ---------- ---------- ---------- ---------- Total noninterest expense 8,625 8,281 25,946 23,698 ---------- ---------- ---------- ---------- Income before taxes 5,736 4,302 15,008 13,376 Income tax expense (2,097) (1,528) (5,594) (4,735) ---------- ---------- ---------- ---------- Net income $ 3,639 $ 2,774 $ 9,414 $ 8,641 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- PER SHARE DATA (PRIMARY AND FULLY DILUTED) Net income $ 0.57 $ 0.43 $ 1.47 $ 1.34 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Average common stock and common stock equivalents 6,408,592 6,398,009 6,388,743 6,398,553 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- </TABLE> See accompanying notes to consolidated financial statements. 2
BANCFIRST CORPORATION CONSOLIDATED STATEMENT OF CASH FLOWS (Dollars in thousands) <TABLE> <CAPTION> NINE MONTHS ENDED SEPTEMBER 30, ---------------------------------- 1995 1994 --------- --------- <S> <C> <C> CASH FLOWS FROM OPERATING ACTIVITIES $ 11,614 $ 10,613 --------- --------- INVESTING ACTIVITIES Purchases of securities (42,263) (52,136) Maturities of securities 57,147 49,525 Proceeds from sales and calls of securities 4,043 2,287 Net decrease in federal funds sold 21,199 16,576 Purchases of loans (9,383) (8,877) Proceeds from sales of loans 38,102 40,944 Net other increase in loans (68,233) (51,356) Cash and due from banks from acquisition (15,542) 164 Purchases of premises and equipment (2,175) (8,922) Proceeds from sales of other real estate owned 81 22,662 Other, net 926 (857) --------- --------- Net cash used by investing activities (15,367) (9,990) --------- --------- FINANCING ACTIVITIES Net increase (decrease) in demand, transaction and savings deposits (17,263) 6,775 Net increase in certificates of deposit 14,786 8,912 Net increase (decrease) in securities sold under repurchase agreements and other short-term borrowings 11,415 (901) Net increase in long-term borrowings 810 -- Issuance of common stock 305 30 Cash dividends paid (1,303) (1,311) Other, net (577) (3,953) --------- --------- Net cash provided (used) by financing activities 8,173 9,552 --------- --------- Net increase in cash and due from banks 4,420 10,175 Cash and due from banks at the beginning of the period 53,564 48,858 --------- --------- Cash and due from banks at the end of the period $ 57,919 $ 59,033 --------- --------- --------- --------- SUPPLEMENTAL DISCLOSURE Cash paid during the period for interest $ 21,042 $ 14,278 --------- --------- --------- --------- Cash paid during the period for income taxes $ 5,439 $ 3,714 --------- --------- --------- --------- </TABLE> See accompanying notes to consolidated financial statements. 3
BANCFIRST CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except per share data) (1) GENERAL The accompanying consolidated financial statements include the accounts of BancFirst Corporation, BancFirst Investment Corporation, BancFirst, Lenders Collection Corporation and National Express Corporation. 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. There have been no significant changes in the accounting policies of the Company since December 31, 1994, the date of the most recent annual report, other than the adoption of Statement of Financial Accounting Standards No. 114, "Accounting by Creditors for Impairment of a Loan" as discussed in note (3) below. The 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. Certain amounts in the 1994 financial statements have been reclassified to conform with the 1995 presentation. (2) ACQUISITIONS In March 1995, the Company acquired State National Bank of Marlow, Oklahoma, which had total assets of $101,976. The acquisition was for cash of $17,485, with an additional $500 placed in escrow pending the resolution of certain matters. State National Bank was immediately merged into BancFirst. The acquisition was accounted for as a purchase. Accordingly, the effect of the transaction is included in the Company's consolidated financial statements from the date of the acquisition forward. A core deposit intangible of $406 and goodwill of $810 were recorded for the acquisition. Subsequent payments from the escrow, if any, to the former shareholders of State National Bank will increase the goodwill recorded. Pro forma condensed results of operations, as though State National Bank had been acquired January 1, 1994, are as follows: <TABLE> <CAPTION> NINE MONTHS ENDED YEAR ENDED SEPTEMBER 30, DECEMBER 31, 1995 1994 ------------ ------------ <S> <C> <C> Net interest income . . . . . . $ 32,850 $ 42,160 Net income . . . . . . . . . . $ 9,593 $ 12,296 Net income per common share . . and common stock equivalent . $ 1.50 $ 1.91 </TABLE> In June 1995, the Company entered into an agreement of merger with Commerce Bancorporation, Inc. of McLoud, Oklahoma ("Commerce Bancorp"), which has approximately $18,000 in total assets. Commerce Bancorp is controlled by certain executive officers of the Company. Under the terms of the agreement, 156,510 shares of BancFirst Corporation common stock would be issued for the 22,573 shares of Commerce Bancorp common stock outstanding. The merger is subject to regulatory and shareholder approvals and is expected to be completed in mid-1996. In September 1995, the Company entered into an agreement of merger with Johnston County Bancshares, Inc. of Tishomingo, Oklahoma ("Johnston County Bancshares"), which has approximately $10,000 in total assets. Johnston County Bancshares is controlled by certain executive officers and directors of the Company. Under the terms of the agreement, each of the 49,620 shares outstanding of Johnston County Bancshares common stock would be exchanged for 0.47 shares of Company common stock, subject to adjustment based upon the market price of Company common stock at the effective time of the merger. Preferred stock of Johnston County Bancshares would be purchased for cash of approximately $97 and minority shares of Johnston County Bancshares' subsidiary bank would be purchased for cash of approximately $120. The merger is subject to regulatory and shareholder approvals and is expected to be completed in December 1995. In September 1995, BancFirst entered into an agreement to acquire City Bankshares, Inc. of Oklahoma City, Oklahoma ("City Bankshares"), which has approximately $140,000 in total assets. Under the terms of the agreement, the Company 4
would acquire all the stock outstanding of City Bankshares for cash of $19,125. C-Teq, Inc., an 85% owned data processing subsidiary of City Bankshares, would be spun off to the shareholders of City Bankshares prior to the acquisition. Additionally, City Bankshares would be required to have stockholders' equity of at least $13,000 at the time of closing. BancFirst also entered into an agreement with the CEO of City Bankshares whereby upon consummation of the acquisition BancFirst would pay the CEO $1,250 in exchange for an agreement not to compete with BancFirst for a period of four years. The acquisition is subject to regulatory approval and is expected to be completed in the first half of 1996. (3) LOANS The Company adopted Financial Accounting Standards No. 114, "Accounting by Creditors for Impairment of a Loan", effective January 1, 1995. This new accounting standard requires that impaired loans be measured based upon the present value of expected future cash flows discounted at the loan's effective interest rate or, as a practical expedient, at the loan's observable market price or the fair value of the collateral if the loan is collateral dependent. A loan is impaired when, based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreement will not be collected. The adoption of FAS 114 did not have a material effect on the financial position or results of operation of the Company. (4) FEDERAL HOME LOAN BANK BORROWINGS BancFirst joined the Federal Home Loan Bank of Topeka, Kansas ("the FHLB") in May 1995, for the primary purpose of participating in the borrowing programs offered by the FHLB. BancFirst was subsequently approved for a $19,600 credit line secured by residential mortgages held by the Bank, and has made two borrowings under the credit line as follows. (a) Short-term borrowing of $10,000; interest at 5.92%, payable monthly; due on May 22, 1996. (b) Long-term borrowing of $810; principle payments due every six months; interest at 6.64%, payable monthly; due September 30, 2010. (5) NET INCOME PER SHARE Net income per share is calculated as follows: <TABLE> <CAPTION> THREE MONTHS NINE MONTHS ENDED ENDED SEPTEMBER 30, SEPTEMBER 30, ------------------- ---------------- 1995 1994 1995 1994 ------ ------ ------ ------- <S> <C> <C> <C> <C> Net income . . . . . . . . . . . . . . . . . . . . $3,639 $2,774 $9,414 $8,641 Less 10% Preferred dividends . . . . . . . . . . . -- -- -- (55) ------ ------ ------ ------ Net income applicable to common stockholders . . . $3,639 $2,774 $9,414 $8,586 ------ ------ ------ ------ ------ ------ ------ ------ Average common shares and common stock equivalents outstanding (in thousands). . . . 6,409 6,398 6,389 6,399 ------ ------ ------ ------ ------ ------ ------ ------ Net income per common share and common stock equivalent . . . . . . . . . $ 0.57 $ 0.43 $ 1.47 $ 1.34 ------ ------ ------ ------ ------ ------ ------ ------ </TABLE> The 10% Preferred dividends for 1994 represent the accumulated dividends paid upon the redemption of the 10% Preferred Stock. Average common shares and common stock equivalents includes shares relating to stock options exercisable within the next five years. 5
(6) STOCK REPURCHASE PROGRAM In March 1995, the Company adopted a Stock Repurchase Program authorizing management to repurchase up to 200,000 shares of the Company's common stock. The program is to be used for purchases of stock by the Company's Employee Stock Ownership and Thrift Plan, and may also be used to enhance earnings per share, provide stock for the exercise of stock options under the Company's Stock Option Plan or to provide additional liquidity for the stock. Stock purchases under the program must satisfy certain criteria regarding effects on earnings per share and book value dilution, resulting equity ratios and the price to book value of comparable size institutions. 6
BANCFIRST CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS SUMMARY The Company reported net income of $3.64 million for the quarter ended September 30, 1995, compared to net income of $2.77 million for the third quarter of 1994. Third quarter 1995 earnings included a $542,000 refund of FDIC insurance premiums. Earnings per share was $0.57 for the third quarter of 1995, compared to $0.43 for the same quarter of the prior year. Net income for the first nine months of 1995 was $9.41 million, exceeding the $8.64 million for the same period of 1994, even though earnings in 1994 benefitted from loan recoveries, gains on sales of other real estate and a lower effective tax rate. Year-to-date earnings per share was $1.47, compared to $1.34 for the first nine months of 1994. Total assets were $981 million at September 30, 1995, an increase of $108 million from December 31, 1994 and $109 million from September 30, 1994 due primarily to the acquisition of State National Bank of Marlow, Oklahoma, with total assets of $102 million, in March 1995. Stockholders' equity increased $12.8 million compared to December 31, 1994 and $13.7 million compared to September 30, 1994. RESULTS OF OPERATIONS THIRD QUARTER -- Net interest income increased for the third quarter of 1995 by $1.23 million, or 12.1%, as compared to the same quarter of 1994. Net interest spread decreased 28 basis points while average net earning assets increased $22.3 million. Net interest margin on a taxable equivalent basis was 5.24% for the third quarter, compared to 5.29% for the same quarter of 1994. The Company provided $150,000 for possible loan losses for the quarter, compared to $321,000 for the same quarter of 1994. Net loan charge-offs were $134,000 for the third quarter of 1995 and $77,000 for the third quarter of 1994, representing annualized rates of 0.09% and 0.06% of total loans, respectively. Noninterest income increased $381,000, or 13.6%, compared to the third quarter of 1994 due to income added by the bank acquired in 1995 and gains on securities transactions. Noninterest expense increased only $344,000, or 4.15%, as the added operating expenses of the bank acquired were partially offset by the refund of FDIC insurance premiums in the third quarter. YEAR-TO-DATE -- For the first nine months of 1995, net interest income increased by $3.48 million, or 12.1%, as compared to the same period of 1994. Net interest spread decreased 17 basis points while average net earning assets increased $18 million. Net interest margin on a taxable equivalent basis was 5.22% for the nine months, compared to 5.15% for the same period of 1994. The Company provided $408,000 for possible loan losses for the first nine months of 1995, compared to only $49,000 for the first nine months of 1994. Net loan charge-offs were $162,000 in 1995, compared to net loan recoveries of $191,000 in 1994, representing annualized rates of 0.04% and (0.05)% of total loans, respectively. Noninterest income increased $759,000, or 9.02%, compared to the first nine months of 1994, due to income of the bank acquired in 1995 and gains on securities transactions. Noninterest expense increased $2.25 million, or 9.49%, compared to 1994, due to the added expenses of the bank acquired, which were partially offset by the FDIC insurance premium refund in the third quarter, and the net income on other real estate owned in 1994. Income tax expense of $5.59 million was recognized for the first nine months of 1995, compared to $4.74 million for the same period of 1994. The Company's effective tax rate increased from 35% in 1994 to 37% in 1995 due to a higher level of taxable income, lower tax-exempt interest and less tax benefit carryforwards available for utilization. 7
FINANCIAL POSITION Total securities increased $32.3 million compared to December 31, 1994 and $23.2 million compared to September 30, 1994, as a net result of securities added by the bank acquisition and maturities of securities used to fund loan growth. The net unrealized gain on securities available for sale was $1.36 million at the end of the third quarter of 1995, compared to net unrealized losses of $6.33 million and $3.83 million at December 31 and September 30, 1994, respectively. The average taxable equivalent yield on the securities portfolio for the third quarter increased to 6.06% from 5.62% in the same quarter of 1994, reflecting the rise in interest rates during that time. Total loans increased $82.3 million since December 31, 1994 and $94.5 million since September 30, 1994 from both internal loan growth and the bank acquisition. The allowance for possible loan losses increased $609,000 in the first nine months of 1995 due primarily to purchased reserves from the bank acquisition and provisions for losses. The allowance as a percentage of total loans was 1.71%, 1.86% and 1.88% at September 30, 1995, December 31, 1994 and September 30, 1994, respectively. Nonperforming and restructured assets increased in the first nine months of 1995 to $6.83 million from $6.07 million at year-end 1994 and $5.82 million at the end of the third quarter of 1994, due to the nonperforming assets of the bank acquired in 1995. Although, the ratio of nonperforming and restructured assets to total assets remained at only 0.70%, it is reasonable to expect that over the next several years problem loans will rise to historical norms as a result of economic and credit cycles. Total deposits increased $82 million compared to both December 31, 1994 and September 30, 1994 due primarily to the bank acquisition. The Company's deposit base continues to be comprised substantially of core deposits, with large denomination certificates of deposit being only 9.5% of total deposits at September 30, 1995. BancFirst joined the Federal Home Loan Bank of Topeka, Kansas in May 1995 and was approved for a $19.6 million credit line. In September 1995, the Bank borrowed $10 million which matures in May 1996 and $810,000 which matures in September 2010. Both borrowings are at fixed rates and are for the purpose of funding loan growth. Stockholders' equity increased $12.8 million compared to year-end 1994 and $13.7 million compared to September 30, 1994. These increases were the result of accumulated earnings and a change from net unrealized losses to net unrealized gains on securities available for sale. Average stockholders' equity to average assets dropped slightly to 9.30% from 9.34% at December 31, 1994 due to the bank acquisition in 1995. The Company's regulatory capital ratios all remain well in excess of the minimum requirements. In March 1995, the Company adopted a Stock Repurchase Program authorizing management to repurchase up to 200,000 shares of the Company's common stock. The program is to be used for purchases of stock by the Company's Employee Stock Ownership and Thrift Plan, and may also be used to enhance earnings per share, provide stock for the exercise of stock options under the Company's Stock Option Plan or to provide additional liquidity for the stock. Stock purchases under the program must satisfy certain criteria regarding effects on earnings per share and book value dilution, resulting equity ratios and the price to book value of comparable size institutions. In June 1995, the Company entered into an agreement of merger with Commerce Bancorporation, Inc. of McLoud, Oklahoma ("Commerce Bancorp"), which has approximately $18 million in total assets. Commerce Bancorp is controlled by certain executive officers of the Company. Under the terms of the agreement, 156,510 shares of BancFirst Corporation common stock would be issued for the 22,573 shares of Commerce Bancorp common stock outstanding. The merger is subject to regulatory and shareholder approvals and is expected to be completed in mid-1996. In September 1995, the Company entered into an agreement of merger with Johnston County Bancshares, Inc. of Tishomingo, Oklahoma ("Johnston County Bancshares"), which has approximately $10 million in total assets. Johnston County Bancshares is controlled by certain executive officers and directors of the Company. Under the terms of the agreement, each of the 49,620 shares outstanding of Johnston County Bancshares common stock would be exchanged for 0.47 shares of Company common stock, subject to adjustment based upon the market price of Company common stock at the effective time of the merger. Preferred stock of Johnston County Bancshares would be purchased for cash of approximately $97,000 and minority shares of Johnston County Bancshares' subsidiary bank would be purchased for cash of approximately $120,000. The merger is subject to regulatory and shareholder approvals and is expected to be completed in December 1995. 8
In September 1995, BancFirst entered into an agreement to acquire City Bankshares, Inc. of Oklahoma City, Oklahoma ("City Bankshares"), which has approximately $140,000 in total assets. Under the terms of the agreement, the Company would acquire all the stock outstanding of City Bankshares for cash of $19.1 million. C-Teq, Inc., an 85% owned data processing subsidiary of City Bankshares, would be spun off to the shareholders of City Bankshares prior to the acquisition. Additionally, City Bankshares would be required to have stockholders' equity of at least $13 million at the time of closing. BancFirst also entered into an agreement with the CEO of City Bankshares whereby upon consummation of the acquisition BancFirst would pay the CEO $1.25 million in exchange for an agreement not to compete with BancFirst for a period of four years. The acquisition is subject to regulatory approval and is expected to be completed in the first half of 1996. 9
BANCFIRST CORPORATION SELECTED FINANCIAL STATISTICS (Dollars in thousands, except per share data) <TABLE> <CAPTION> THREE MONTHS NINE MONTHS ENDED ENDED SEPTEMBER 30, SEPTEMBER 30, ----------------- ----------------- 1995 1994 1995 1994 ------- ------- ------- ------- <S> <C> <C> <C> <C> PER COMMOM SHARE DATA: Income before extraordinary item and accounting change $ 0.57 $ 0.43 $ 1.47 $ 1.34 Net income 0.57 0.43 1.47 1.34 Cash dividends declared 0.07 0.06 0.21 0.18 Book value at period end 15.26 13.07 Tangible book value at period end 13.94 11.74 PERFORMANCE RATIOS: Return on average assets 1.48% 1.27% 1.32% 1.34% Return on average common equity 15.76 13.77 14.24 14.43 Increase in tangible book value (annualized) 21.47 11.57 22.46 8.71 Noninterest expense/(net interest income + noninterest income) 60.61 64.17 62.73 63.84 </TABLE> <TABLE> <CAPTION> SEPTEMBER 30, DECEMBER 31, ---------------- 1995 1994 1994 ------ ------ ------------- <S> <C> <C> <C> BALANCE SHEET RATIOS: Average loans to deposits (year to date) 66.66% 62.67% 63.39% Allowance for possible loan losses to total loans 1.71 1.88 1.86 Allowance for possible loan losses to nonperforming and restructured loans 226.41 265.66 261.53 Nonperforming and restructured assets to total assets 0.70 0.67 0.70 CAPITAL RATIOS: Average stockholders' equity to average assets (year to date) 9.30% 9.20 9.34% Leverage ratio (regulatory minimum 3%) 8.84 8.49 9.08 Total risk-based capital ratio (regulatory minimum 8%) 16.14 15.92 16.67 </TABLE> <TABLE> <CAPTION> THREE MONTHS ENDED SEPTEMBER 30, -------------------------------------------------------------- 1995 1994 -------------------------------------------------------------- AVERAGE AVERAGE AVERAGE BALANCES AND NET INTEREST MARGIN AVERAGE YIELD/ AVERAGE YIELD/ ANALYSIS (TAXABLE EQUIVALENT BASIS): BALANCE RATE BALANCE RATE --------- ------- --------- -------- <S> <C> <C> <C> <C> Loans $ 595,089 10.09% $ 499,703 9.42% Investment securities 249,596 6.07 239,563 5.62 Federal funds sold 24,729 5.83 31,473 4.54 --------- --------- Total earning assets 869,414 8.81 770,739 8.04 Nonearning assets 111,036 104,466 --------- --------- Total assets $ 980,450 $ 875,205 --------- --------- --------- --------- Interest-bearing deposits $ 696,845 4.44% $ 621,714 3.39% Short-term borrowings 1,659 5.02 415 4.78 --------- --------- Total interest-bearing liabilities 698,504 4.45 622,129 3.40 Demand deposits 183,676 167,199 Other noninterest-bearing liabilities 5,908 5,316 Stockholders' equity 92,362 80,561 --------- --------- Total liabilities and stockholders' equity $ 980,450 $ 875,205 --------- --------- --------- --------- Net interest spread 4.36% 4.64% Net interest margin 5.24% 5.29% </TABLE> 10
PART II. OTHER INFORMATION ---------------------------
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K. (a) Exhibits EXHIBIT NUMBER EXHIBIT - -------- ------------------------------------------------------------------- 2.1 Agreement and Plan of Reorganization dated October 28, 1994 among BancFirst, State National Bank, Marlow, Oklahoma, and certain shareholders of State National Bank (filed as Exhibit 2.4 to the Company's Report on Form 10-Q for the quarter ended September 30, 1994 and incorporated herein by reference). 2.2* Agreement and Plan of Reorganization dated September 16, 1995 between BancFirst and City Bankshares, Inc. 2.3* Agreement dated September 16, 1995 between BancFirst and William O. Johnstone. 27.1* Financial Data Schedule. - -------- * Filed herewith (b) No reports on Form 8-K have been filed by the Company during the quarter ended September 30, 1995. 11
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, thereunto duly authorized. November 10, 1995 BANCFIRST CORPORATION --------------------- (Registrant) /s/Randy Foraker ------------------------------------- Randy P. Foraker Sr. Vice President, Controller and Secretary/Treasurer (Principal Accounting Officer) 12