SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (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, 2000 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 (I.R.S. Employer incorporation or organization) Identification No.) 101 N. Broadway, Suite 200, 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 . --- --- As of April 30, 2000 there were 8,079,579 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) <TABLE> <CAPTION> March 31, December 31, --------------------------------------------- 2000 1999 1999 -------------------- -------------------- -------------------- <S> <C> <C> <C> ASSETS Cash and due from banks $ 116,488 $ 120,216 $ 126,691 Interest-bearing deposits with banks 652 20 1,715 Federal funds sold 70,850 159,600 51,666 Securities (market value: $590,391, $552,883 and $595,509, 591,931 551,598 596,715 respectively) Loans: Total loans (net of unearned interest) 1,490,850 1,350,230 1,455,481 Allowance for loan losses (23,566) (20,380) (22,548) -------------------- -------------------- -------------------- Loans, net 1,467,284 1,329,850 1,432,933 Premises and equipment, net 55,614 47,553 52,467 Other real estate owned 1,404 1,244 1,612 Intangible assets, net 23,339 23,589 24,087 Accrued interest receivable 22,069 20,994 20,771 Other assets 28,553 24,397 27,150 -------------------- -------------------- -------------------- Total assets $ 2,378,184 $ 2,279,061 $ 2,335,807 ==================== ==================== ==================== LIABILITIES AND STOCKHOLDERS' EQUITY Deposits: Noninterest-bearing $ 434,348 $ 415,792 $ 460,131 Interest-bearing 1,680,981 1,559,445 1,622,565 -------------------- -------------------- -------------------- Total deposits 2,115,329 1,975,237 2,082,696 Short-term borrowings 23,597 39,612 22,091 Long-term borrowings 27,304 17,278 26,392 9.65% Capital Securities 25,000 25,000 25,000 Accrued interest payable 8,111 8,037 8,421 Other liabilities 10,866 10,365 6,493 -------------------- -------------------- -------------------- Total liabilities 2,210,207 2,075,529 2,171,093 -------------------- -------------------- -------------------- Commitments and contingent liabilities Stockholders' equity: Common stock, $1.00 par (shares issued: 8,098,195, 8,098 9,321 8,112 9,321,295 and 8,112,170, respectively) Capital surplus 47,081 45,657 46,766 Retained earnings 117,314 145,985 113,344 Accumulated other comprehensive income (4,516) 2,569 (3,508) -------------------- -------------------- -------------------- Total stockholders' equity 167,977 203,532 164,714 -------------------- -------------------- -------------------- Total liabilities and stockholders' equity $ 2,378,184 $ 2,279,061 $ 2,335,807 ==================== ==================== ==================== See accompanying notes to consolidated financial statements. </TABLE> 2
BANCFIRST CORPORATION CONSOLIDATED STATEMENT OF INCOME (Unaudited) (Dollars in thousands, except per share data) <TABLE> <CAPTION> Three Months Ended March 31, ------------------------------------ 2000 1999 ---------------- ---------------- <S> <C> <C> INTEREST INCOME Loans, including fees $ 33,353 $ 29,768 Securities: Taxable 8,427 7,787 Tax-exempt 550 551 Federal funds sold 803 1,724 Interest-bearing deposits with banks 18 -- ---------------- ---------------- Total interest income 43,151 39,830 ---------------- ---------------- INTEREST EXPENSE Deposits 17,118 15,192 Short-term borrowings 346 658 Long-term borrowings 413 227 9.65% Capital Securities 612 612 ---------------- ---------------- Total interest expense 18,489 16,689 ---------------- ---------------- Net interest income 24,662 23,141 Provision for loan losses 1,289 937 ---------------- ---------------- Net interest income after provision for loan losses 23,373 22,204 ---------------- ---------------- NONINTEREST INCOME Service charges on deposits 4,056 3,830 Securities transactions -- 1 Other 3,202 4,039 ---------------- ---------------- Total noninterest income 7,258 7,870 ---------------- ---------------- NONINTEREST EXPENSE Salaries and employee benefits 11,902 11,398 Occupancy and fixed assets expense, net 1,378 1,156 Depreciation 1,266 1,244 Amortization 945 864 Data processing services 663 572 Net (income) expense from other real estate owned (70) 21 Other 4,903 4,761 ---------------- ---------------- Total noninterest expense 20,987 20,016 ---------------- ---------------- Income before taxes 9,644 10,058 Income tax expense (3,487) (3,836) ---------------- ---------------- Net income 6,157 6,222 Other comprehensive income, net of tax: Unrealized losses on securities (1,008) (2,862) ---------------- ---------------- Comprehensive income $ 5,149 $ 3,360 ================ ================ NET INCOME PER COMMON SHARE Basic $ 0.76 $ 0.67 ================ ================ Diluted $ 0.75 $ 0.66 ================ ================ See accompanying notes to consolidated financial statements. </TABLE> 3
BANCFIRST CORPORATION CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) (Dollars in thousands) <TABLE> <CAPTION> Three Months Ended March 31, ---------------------------------- 2000 1999 ---------------- -------------- <S> <C> <C> CASH FLOWS FROM OPERATING ACTIVITIES $ 11,225 $ 8,021 ---------------- -------------- INVESTING ACTIVITIES Net cash and due from banks provided by (used for) acquisitions -- (12,116) and divestitures Purchases of securities: Held for investment -- (24,575) Available for sale (24,332) (9,951) Maturities of securities: Held for investment 4,963 25,719 Available for sale 22,120 35,421 Proceeds from sales of securities: Held for investment 395 155 Available for sale -- -- Net (increase) decrease in federal funds sold (19,184) 27,769 Purchases of loans (1,146) (11,037) Proceeds from sales of loans 25,641 41,710 Net other increase in loans (60,485) (45,669) Purchases of premises and equipment (3,668) (2,374) Proceeds from the sale of other real estate owned and repossessed assets 788 850 Other, net (748) 773 ---------------- -------------- Net cash provided (used) by investing activities (55,656) 26,675 ---------------- -------------- FINANCING ACTIVITIES Net increase (decrease) in demand, transaction and savings deposits 21,773 (39,795) Net increase in certificates of deposits 10,860 5,776 Net increase (decrease) in short-term borrowings 1,506 (15,229) Net increase in long-term borrowings 912 4,312 Issuance of common stock 335 549 Acquisition of common stock (924) (1,067) Cash dividends paid (1,297) (1,302) ---------------- -------------- Net cash provided (used) by financing activities 33,165 (46,756) ---------------- -------------- Net increase (decrease) in cash and due from banks (11,266) (12,060) Cash and due from banks at the beginning of the period 128,406 132,296 ---------------- -------------- Cash and due from banks at the end of the period $ 117,140 $ 120,236 ================ ============== SUPPLEMENTAL DISCLOSURE Cash paid during the period for interest $ 18,799 $ 16,967 ================ ============== Cash paid during the period for income taxes $ -- $ 146 ================ ============== See accompanying notes to consolidated financial statements. </TABLE> 4
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, BancFirst and its subsidiaries, and First State Bank for 2000 and a portion of 1999. 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, 1999, the date of the most recent annual report. Certain amounts in the 1999 financial statements have been reclassified to conform to the 2000 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 1998, the Financial Accounting Standards Board (the "FASB") issued Statement of Financial Accounting Standards No. 133, "Accounting for Derivative Instruments and Hedging Activities." This Statement establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts, and for hedging activities. It requires that an entity recognize all derivatives as either assets or liabilities in the statement of financial position and measure those financial instruments at fair value. The accounting for changes in the fair value of a derivative instrument depends on the intended use of the derivative and its resulting designation. In June 1999, the FASB issued Statement of Financial Accounting Standards No. 137, "Accounting for Derivative Instruments and Hedging Activities - Deferral of the Effective Date of FASB Statement No. 133 - an amendment of FASB Statement No. 133." This Statement defers the effective date of FASB Statement No. 133 to all fiscal quarters of fiscal years beginning after June 15, 2000. The Company does not expect that the adoption of this standard will have a material impact on its consolidated financial statements. (3) RECENT DEVELOPMENTS; MERGERS, ACQUISITIONS AND DISPOSALS In February 1999, the Company sold a branch in Anadarko, Oklahoma, which had deposits of approximately $15,500. The sale resulted in a pretax gain of approximately $900. In December 1999, the Company completed the purchase of certain assets and assumption of certain liabilities of First State Bank of Oklahoma City, Oklahoma. Under the terms of the agreement, the Company organized a new wholly- owned bank under the First State Bank name. The new First State Bank acquired approximately $106,000 of assets, assumed approximately $109,000 of liabilities, and recorded $2,615 of intangible assets. The purchase and assumption was accounted for as a purchase. Accordingly, the effects of the acquisition are included in the Company's consolidated financial statements from the date of the acquisition forward. The acquisition did not have a material effect on the results of the operations of the Company for 1999. In March 2000, BancFirst Corporation became a financial holding company under the new Gramm-Leach-Bliley financial services modernization law. This will allow the Company to expand into new financial activities such as insurance underwriting, securities underwriting and dealing, and mutual fund distribution. 5
(4) TENDER OFFER In June 1999, the Company completed a Dutch auction issuer tender offer and purchased 1,186,502 shares of its common stock for the maximum offer price of $38.00 per share. Cash on hand and two borrowings totaling $7,600 were used to pay for the purchase of the stock. The two borrowings under a $12,000 revolving line of credit were at rates of 6.3% and 6.5%, and matured in July and October 1999. (5) SECURITIES The table below summarizes securities held for investment and securities available for sale. <TABLE> <CAPTION> March 31, December 31, ------------------------- 2000 1999 1999 ----------- ----------- ----------- <S> <C> <C> <C> Held for investment at cost (market value; $96,008, $117,509 and $128,275, respectively) $ 97,548 $ 116,224 $ 129,481 Available for sale, at market value 494,383 435,374 467,234 ----------- ----------- ----------- Total $ 591,931 $ 551,598 $ 596,715 =========== =========== =========== </TABLE> (6) 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. <TABLE> <CAPTION> Three Months Ended March 31, ----------------------------------- 2000 1999 --------------- --------------- <S> <C> <C> Unrealized loss during the period: Before-tax amount $ (1,588) $ (4,292) Tax benefit 580 1,430 --------------- --------------- Net-of-tax amount $ (1,008) $ (2,862) =============== =============== </TABLE> The amount of unrealized gain or loss included in accumulated other comprehensive income is summarized below. <TABLE> <CAPTION> Three Months Ended March 31, ----------------------------------- 2000 1999 --------------- --------------- <S> <C> <C> Unrealized gain (loss) on securities: Beginning balance $ (3,508) $ 5,431 Current period change (1,008) (2,862) --------------- --------------- Ending balance $ (4,516) $ 2,569 =============== =============== </TABLE> 6
(7) NET INCOME PER COMMON SHARE Basic and diluted net income per common share are calculated as follows: <TABLE> <CAPTION> Income Shares Per Share (Numerator) (Denominator) Amount ------------------ ----------------- --------------- <S> <C> <C> <C> Three Months Ended March 31, 2000 - --------------------------------- Basic Income available to common stockholders $ 6,157 8,105,168 $ 0.76 =============== Effect of stock options -- 72,477 ------------------ ----------------- Diluted Income available to common stockholders plus assumed exercises of stock options $ 6,157 8,177,645 $ 0.75 ================== ================= =============== Three Months Ended March 31, 1999 - --------------------------------- Basic Income available to common stockholders $ 6,222 9,311,351 $ 0.67 =============== Effect of stock options -- 127,158 ------------------ ----------------- Diluted Income available to common stockholders plus assumed exercises of stock options $ 6,222 9,438,509 $ 0.66 ================== ================= =============== </TABLE> 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. <TABLE> <CAPTION> Average Exercise Shares Price ------------- ---------------- <S> <C> <C> Three Months Ended March 31, 2000 304,000 $ 33.21 Three Months Ended March 31, 1999 118,950 $ 36.21 </TABLE> 7
(8) SEGMENT INFORMATION The Company evaluates its performance with an internal profitability measurement system that measures the profitability of its business units on a pre-tax basis. The four principal business units were metropolitan banks, community banks, other financial services, and executive, operations and support. Metropolitan and community banks offer traditional banking products such as commercial and retail lending, and a full line of deposit accounts. Metropolitan banks consist of banking locations in the metropolitan Oklahoma City and Tulsa areas. Community banks consist of banking locations in communities throughout Oklahoma. Other financial services are specialty product business units including guaranteed small business lending, guaranteed student lending, residential mortgage lending, trust services, and electronic banking. The executive, operations and support groups represent executive management, operational support and corporate functions that are not allocated to the other business units. The results of operations and selected financial information for the four business units are as follows: <TABLE> <CAPTION> Other Executive, Metropolitan Community Financial Operations Elimin- Consol- Banks Banks Services & Support ations idated ---------- ---------- ---------- ---------- ---------- ---------- <S> <C> <C> <C> <C> <C> <C> Three Months Ended: March 31, 2000 Net interest income (expense) $ 7,532 $ 17,024 $ 962 $ (856) $ -- $ 24,662 Noninterest income 1,437 3,815 1,237 7,416 (6,647) 7,258 Income before taxes 2,887 9,364 507 3,533 (6,647) 9,644 March 31, 1999 Net interest income (expense) $ 5,400 $ 16,872 $ 1,229 $ (360) $ -- $ 23,141 Noninterest income 1,100 4,637 1,463 7,123 (6,453) 7,870 Income before taxes 2,390 9,461 706 3,845 (6,344) 10,058 Total Assets: March 31, 2000 $749,510 $1,657,120 $106,466 $ 57,197 $(192,109) $2,378,184 March 31, 1999 $536,336 $1,657,453 $104,659 $199,590 $(218,977) $2,279,061 </TABLE> The financial information for each business unit is presented on the basis used internally by management to evaluate performance and allocate resources. The Company utilizes a transfer pricing system to allocate the benefit or cost of funds provided or used by the various business units. Certain revenues related to other financial services are allocated to the banks whose customers receive the services and, therefor, are not reflected in the income for other financial services. Certain services provided by the support group to other business units, such as item processing, are allocated at rates approximating the cost of providing the services. Eliminations are adjustments to consolidate the business units and companies. 8
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. BANCFIRST CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS SUMMARY Net income for the first quarter ended March 31, 2000 was $6.16 million, down from $6.22 million for the same quarter of the previous year. A gain of approximately $900,000 was recognized in the first quarter of 1999 from the sale of a branch in Anadarko, Oklahoma. Excluding this gain, net income for 2000 increased $467,000 compared to the first quarter of 1999. Diluted net income per share was $0.75, up from $0.66 for the first quarter of 1999, as the combined result of the higher earnings and a Dutch auction issuer tender offer completed in June 1999, under which the Company repurchased 1,186,502 shares of its common stock for $45.1 million. Total assets were $2.38 billion at March 31, 2000, up $42.4 million from December 31, 1999 and $99.1 million from March 31, 1999. The asset growth compared to the first quarter of 1999 was due primarily to the acquisition of First State Bank of Oklahoma City, Oklahoma in December 1999, which added approximately $109 million of assets. Stockholders' equity was $168 million at March 31, 2000, an increase of $3.26 million compared to December 31, 1999, and a decrease of $35.6 million compared to March 31, 1999 due to the Dutch auction tender offer. In March 2000, BancFirst Corporation became a financial holding company under the new Gramm-Leach-Bliley financial services modernization law. This will allow the Company to expand into new financial activities such as insurance underwriting, securities underwriting and dealing, and mutual fund distribution. RESULTS OF OPERATIONS Net interest income increased by $1.52 million compared to the first quarter of 1999, primarily as a result of an increase in the net interest margin from 4.61% to 4.76%. Average net earning assets increased only $263,000 compared to the first quarter of 1999, while net interest spread was 3.95% for the quarter, up from 3.79% for the first quarter of 1999. The higher net interest spread and net interest margin are the product of rising interest rates in late 1999 and early 2000, loan growth, and the Company's ability to control its funding costs in the short run. This results in the Company's yield on its earning assets rising faster than the rate on its interest-bearing liabilities. The Company provided $1.29 million for loan losses for the first quarter, compared to $937,000 for the first quarter of 1999. The higher provisions in 2000 were due to loan growth and higher classified and nonperforming loans. Net loan charge-offs were only $270,000 for the first quarter of 2000, compared to $216,000 for the first quarter of 1999. The net charge-offs represent annualized rates of only 0.07% and 0.06% of total loans for both the first quarter of 2000 and 1999. Noninterest income decreased $612,000 compared to the first quarter of 1999. Excluding the $900,000 gain on the sale of the Anadarko branch, noninterest income increased $288,000, or 4.13%, compared to the first quarter of 1999. Noninterest expense increased $972,000, or 4.86%, compared to the first quarter of 1999. These increases were mainly due to the acquisition of First State Bank. Income tax expense decreased $349,000 compared to the first quarter of 1999. The effective tax rate on income before taxes was 36.16%, down from 38.14% in the first quarter of 1999. 9
FINANCIAL POSITION Total securities decreased $4.78 million compared to December 31, 1999 and increased $40.3 million compared to March 31, 1999. The size of the Company's securities portfolio is a function of liquidity management and excess funds available for investment. The Company has maintained a very liquid securities portfolio to provide funds for loan growth. The main factors in the changes in total securities were changes in funding from deposits and use of funds for loan growth. The net unrealized loss on securities available for sale was $6.73 million at the end of the first quarter of 2000, compared to a loss of $5.14 million at December 31, 1999 and a gain of $3.96 million at March 31, 1999. The average taxable equivalent yield on the securities portfolio for the first quarter increased to 6.25% from 6.20% for the same quarter of 1999. Total loans increased $35.4 million from December 31, 1999 and $141 million from March 31, 1999, due to internal growth and approximately $60 million of loans acquired from First State Bank. The allowance for loan losses increased $1.02 million from year-end 1999 and $3.19 million from the first quarter of 1999. The allowance as a percentage of total loans was 1.58%, 1.55% and 1.51% at March 31, 2000, December 31, 1999 and March 31, 1999, respectively. The allowance to nonperforming and restructured loans at the same dates was 165.77%, 183.47% and 181.08%, respectively. Nonperforming and restructured assets totaled $14.2 million at both March 31, 2000 and December 31, 1999, compared to $12.7 million at March 31, 1999. Although the ratio of nonperforming and restructured assets to total assets is only 0.60%, it is reasonable to expect nonperforming loans and loan losses to rise over time to historical norms as a result of future economic and credit cycles. Total deposits increased $32.6 million compared to December 31, 1999 and $140 million compared to March 31, 1999. The increase in deposits is the result of internal growth and the acquisition of First State Bank, which added approximately $109 million in deposits. The Company's deposit base continues to be comprised substantially of core deposits, with large denomination certificates of deposit being only 12.9% of total deposits at March 31, 2000. Short-term borrowings increased $1.51 million from December 31, 1999 and decreased $16 million from March 31, 1999. Fluctuations in short-term borrowings are a function of federal funds purchased from correspondent banks, customer demand for repurchase agreements and liquidity needs of the bank. Long-term borrowings increased $912,000 from year-end 1999 and $10 million from the first quarter of 1999 due to additional Federal Home Loan Bank borrowings. The Company uses these borrowings primarily to match-fund long-term fixed-rate loans. Stockholders' equity increased to $168 million from $165 million at year- end 1999 and $204 million at March 31, 1999. The decrease from the first quarter of 1999 is due to the Dutch auction issuer tender offer completed by the Company in June 1999. The Company repurchased 1,186,502 shares of its common stock for $45.1 million. Average stockholders' equity to average assets for the quarter was 7.09%, compared to 9.13% for the first quarter of 1999. The Company's leverage ratio and total risk-based capital ratio were 7.40% and 12.40%, respectively, at March 31, 2000, well in excess of the regulatory minimums. Year 2000 Exposure Since January 1, 2000, the Company has tested its critical systems and the tests have not revealed any year 2000 problems. In addition, the Company's operations have not experienced any year 2000-related problems. The Company will continue to analyze its systems and services that utilize date-embedded codes that may experience operational problems as various functions are utilized, or as other potential problem dates arrive throughout the year. The Company will continue to communicate with third party vendors of systems software and equipment, suppliers of telecommunications capacity and equipment, customers and others with which it does business to coordinate year 2000 compliance. The total cost of addressing the Year 2000 issue was not material. The Company's core business applications are provided by a data processing company that devoted substantial resources to assuring that the applications were 10
certified as Year 2000 compliant by the end of 1998. Certain of the other systems either have been replaced, or were already going to be replaced with newer technology, and their replacement was not accelerated due the Year 2000 issue. Also, no significant information technology projects were deferred because of the Year 2000 issue. Future Application of Accounting Standards See note (2) of the Notes to Consolidated Financial Statements for a discussion of recently issued accounting pronouncements. Segment Information See note (8) of the Notes to Consolidated Financial Statements for disclosures regarding business segments. Forward Looking Statements The Company may make forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) with respect to earnings, credit quality, year 2000 compliance, corporate objectives, interest rates and other financial and business matters. The Company cautions readers that these forward-looking statements are subject to numerous assumptions, risks and uncertainties, including economic conditions, the performance of financial markets and interest rates; legislative and regulatory actions and reforms; competition; as well as other factors, all of which change over time. Actual results may differ materially from forward-looking statements. 11
BANCFIRST CORPORATION SELECTED CONSOLIDATED FINANCIAL STATISTICS (Unaudited) (Dollars in thousands, except per share data) <TABLE> <CAPTION> Three Months Ended March 31, ------------------------ PERFORMANCE STATISTICS 2000 1999 ---------- ---------- <S> <C> <C> Net income per share - basic $ 0.76 $ 0.67 Net income per share - diluted 0.75 0.66 Cash dividends per share 0.16 0.14 Return on average assets 1.06% 1.10% Return on average stockholders' equity 14.88 12.04 Efficiency ratio 65.75 64.54 </TABLE> <TABLE> <CAPTION> BALANCE SHEET AND ASSET QUALITY STATISTICS March 31, ------------------------ December 31, 2000 1999 1999 ---------- ---------- ---------- <S> <C> <C> <C> Book value per share $ 20.74 $ 21.84 $ 20.30 Tangible book value per share 17.86 19.31 17.34 Average loans to deposits (year-to-date) 70.07% 67.94% 68.61% Nonperforming and restructured assets to total assets 0.60 0.56 0.61 Allowance for loan losses to total loans 1.58 1.51 1.55 Allowance for loan losses to nonperforming and restructured loans 165.77 181.08 183.47 </TABLE> <TABLE> <CAPTION> CONSOLIDATED AVERAGE BALANCE SHEETS Three Months Ended March 31, AND INTEREST MARGIN ANALYSIS ---------------------------------------------------- 2000 1999 ------------------------ ------------------------ Taxable Equivalent Basis Average Average Average Average Balance Yield/Rate Balance Yield/Rate ---------- ---------- ---------- ---------- <S> <C> <C> <C> <C> Earning assets: Loans $1,462,936 9.18% $1,343,169 9.01% Securities 595,017 6.25 568,017 6.20 Federal funds sold 55,791 5.90 144,294 4.84 ---------- ---------- Total earning assets 2,113,744 8.27 2,055,480 7.94 ---------- ---------- Nonearning assets: Cash and due from banks 128,546 131,734 Interest receivable and other assets 127,214 128,638 Allowance for possible loan losses (22,852) (19,859) ---------- ---------- Total nonearning assets 232,908 240,513 ---------- ---------- Total assets $2,346,652 $2,295,993 ========== ========== Interest-bearing liabilities: Interest-bearing deposits $1,638,845 4.19% $1,564,414 4.01% Short-term borrowings 25,915 5.36 52,978 5.01 Long-term borrowings 26,693 6.19 16,060 5.72 9.65% Capital Securities 25,000 9.82 25,000 9.92 ---------- ---------- Total interest-bearing liabilities 1,716,453 4.32 1,658,452 4.15 ---------- ---------- Interest-free funds: Noninterest-bearing deposits 448,904 412,597 Interest payable and other liabilities 14,857 15,425 Stockholders' equity 166,438 209,519 ---------- ---------- Total interest-free funds 630,199 637,541 ---------- ---------- Total liabilities and stockholders' equity $2,346,652 $2,295,993 ========== ========== Net interest spread 3.95% 3.79% ========== ========== Net interest margin 4.76% 4.61% ========== ========== </TABLE> 12
Item 3. Quantitative and Qualitative Disclosures About Market Risk. There have been no significant changes in the Registrants disclosures regarding market risk since December 31, 1999, the date of its annual report to stockholders. PART II - OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K. (a) Exhibits Exhibit Number Exhibit - --------- ----------------------------------------------------------- 2.1 Merger Agreement dated May 6, 1998 between BancFirst Corporation and AmQuest Financial Corp. (filed as Exhibit 2.2 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 1998 and incorporated herein by reference). 3.1 Second Amended and Restated Certificate of Incorporation (filed as Exhibit 1 to the Company's Form 8-A/A filed July 23, 1998 and incorporated herein by reference). 3.2 Certificate of Designations of Preferred Stock (filed as Exhibit 3.2 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1998 and incorporated herein by reference). 3.3 Amended By-Laws (filed as Exhibit 3.2 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1992 and incorporated herein by reference). 4.1 Amended and Restated Declaration of Trust of BFC Capital Trust I dated as of February 4, 1997 (filed as Exhibit 4.1 to the Company's Current Report on Form 8-K dated February 4, 1997 and incorporated herein by reference.) 4.2 Indenture dated as of February 4, 1997 (filed as Exhibit 4.2 to the Company's Current Report on Form 8-K dated February 4, 1997 and incorporated herein by reference.) 4.3 Series A Capital Securities Guarantee Agreement dated as of February 4, 1997 (filed as Exhibit 4.3 to the Company's Current Report on Form 8-K dated February 4, 1997 and incorporated herein by reference). 4.4 Rights Agreement, dated as of February 25, 1999, between BancFirst Corporation and BancFirst, as Rights Agent, including as Exhibit A the form of Certificate of Designations of the Company setting forth the terms of the Preferred Stock, as Exhibit B the form of Right Certificate and as Exhibit C the form of Summary of Rights Agreement (filed as Exhibit 1 to the Company's Current Report on Form 8-K dated February 25, 1999 and incorporated herein by reference). 27.1* Financial Data Schedule for the three months ended March 31, 2000. - -------------------------------------------------------------------------------- *Filed herewith (b) No reports on Form 8-K were filed by the Company during the quarter ended March 31, 2000. 13
SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. BANCFIRST CORPORATION --------------------- (Registrant) Date May 15, 2000 \s\ Randy P. Foraker ------------ ------------------------------------------ (Signature) Randy P. Foraker Senior Vice President and Controller; Assistant Secretary/Treasurer (Principal Accounting Officer) 14