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BancFirst Corp. Reports Operating Results (10-Q)

August 09, 2012 | About:
10qk

10qk

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BancFirst Corp. (BANF) filed Quarterly Report for the period ended 2012-06-30.

Bancfirst Corporation has a market cap of $627.9 million; its shares were traded at around $40.91 with a P/E ratio of 12.8 and P/S ratio of 2.4. The dividend yield of Bancfirst Corporation stocks is 2.6%. Bancfirst Corporation had an annual average earning growth of 3.7% over the past 10 years.

Highlight of Business Operations:

BancFirst Corporations net income was $11.7 million or $0.76 diluted earnings per share for the second quarter of 2012 and $25.7 million or $1.67 diluted earnings per share for the six months ended June 30, 2012. These results compared to net income of $10.1 million or $0.65 diluted earnings per share for the second quarter of 2011 and $21.5 million or $1.37 diluted earnings per share for the six months ended June 30, 2011.

Net interest income for the second quarter of 2012 was $40.9 million, up $2.9 million or 7.5% from the second quarter in 2011. The increase was attributable to growth in the Companys average loans which totaled $3.1 billion, up $251.6 million from the prior year. The Companys average earning assets rose to $5.3 billion as a result of internal growth combined with the acquisition made in July 2011. The Companys net interest margin for the second quarter of 2012 was 3.14% versus 3.17% a year ago as interest rates remain at historically low levels. The Companys loan loss provision for the second quarter was $248,000 down from $2.0 million for the same period in 2011. Nonperforming and restructured assets were 0.89% of total assets compared to 0.92% at March 31, 2012 and 0.71% at December 31, 2011. Net charge-offs were 0.06% compared to 0.15% for the same period a year ago. Noninterest income totaled $20.4 million which was up $685,000 from a year ago. Excluding security gains, core noninterest income increased $1.8 million or 9.7% from the prior year. The increases in revenues resulted primarily from growth in trust services, commercial deposit revenues, insurance commissions and treasury management services. Noninterest expense for the second quarter was $42.6 million compared to $39.6 million a year ago. The increase in noninterest expense is related to the acquisition made in July 2011 and net expense on other real estate of $922,000.

For the three months ended June 30, 2012, net interest income, which is the Companys principal source of operating revenue, increased $2.9 million, or 7.5%, compared to the three months ended June 30, 2011. The increase was attributable to the increase in the Companys average loans, which were $3.1 billion, up $251.6 million from the prior year and $1.6 million from the ongoing operations of the Companys July 2011 acquisition. In addition, interest expense decreased due to interest rates remaining at historically low levels. Net interest margin is the ratio of taxable-equivalent net interest income to average earning assets for the period. The Companys net interest margin decreased for the three months ended June 30, 2012 compared to the three months ended June 30, 2011, as shown in the preceding table, which was due to continued low interest rates, the rolloff of higher yielding earning assets and an increase in earning assets at relatively low rates. If interest rates and/or loan volume do not increase, management expects continued compression of its net interest margin for the remainder of 2012 as higher yielding loans and securities mature and are replaced at current market rates.

Noninterest income for the six months ended June 30, 2012 increased $6.4 million or 17.1% compared to the same period in 2011. The increases in revenues were primarily from a $4.5 million pretax securities gain from the sale of an investment by Council Oak Investment Corporation, a wholly-owned subsidiary of BancFirst. In addition, the ongoing operations of the Companys July 2011 acquisition added $1.4 million, along with increased revenues from trust services, commercial deposit revenues, insurance commissions and treasury management services.

At June 30, 2012, stockholders equity increased $16.5 million from December 31, 2011 and $29.2 million from June 30, 2011. In addition to net income of $25.7 million, other changes in stockholders equity during the six months ended June 30, 2012 included $964,000 related to stock option exercises, $798,000 related to stock-based compensation partially offset by $8.2 million in dividends, $256,000 of common stock repurchases and a $2.5 million change to other comprehensive income. Stockholders equity has continued to increase due to net earnings retained, stock option exercises and unrealized gains on securities, partially offset by common stock repurchases, dividends and unrealized losses on securities. The ratios of average stockholders equity to average assets are presented above. The Companys leverage ratio and total risk-based capital ratio were 8.24% and 14.62%, respectively, at June 30, 2012, well in excess of the regulatory minimums.

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