BancFirst Corporation Reports First Quarter Earnings

OKLAHOMA CITY, April 20, 2017

The Company's net interest income for the first quarter of 2017 increased to $54.8 million compared to $50.0 million for the first quarter of 2016. The net interest margin for the quarter was 3.39% compared to 3.25% a year ago. The increase in margin was primarily due to the previously mentioned interest of $2.3 million, which added 0.14% to the margin, and the increase in the federal funds rate.  The provision for loan losses for the first quarter of 2017 decreased to $72,000 compared to $4.1 million a year ago. The decrease in the provision was due in part to the resolution of the above-mentioned problem loans and an unusually high provision for a few commercial loans in the prior year.  Net charge-offs for the quarter were 0.02% of average loans, compared to 0.03% for the first quarter of 2016.  Noninterest income for the quarter totaled $28.1 million, compared to $25.6 million last year. Noninterest expense for the quarter totaled $49.6 million compared to $46.3 million last year. The increase in noninterest expense was due to salary increases in 2017 and $1.2 million in gains on the sale of other real estate owned that reduced expenses in 2016. The Company's effective tax rate was 33.6% compared to 34.2% for the first quarter of 2016. The decrease in the effective tax rate was due to a change in accounting standards related to stock based compensation. 

At March 31, 2017, the Company's total assets were $7.2 billion, an increase of $170.7 million from December 31, 2016. Securities of $463.3 million and loans of $4.4 billion were both down slightly from December 31, 2016.  Deposits totaled $6.4 billion, an increase of $146.6 million from December 31, 2016 total. The Company's total stockholders' equity was $729.9 million, an increase of $18.8 million over December 31, 2016.

Asset quality remained strong during the first quarter of 2017.  Nonperforming and restructured assets fell to 0.45% of total assets at March 31, 2017 compared to 0.56% at December 31, 2016. The decrease in nonperforming and restructured assets was largely due to the resolution of the aforementioned two problem loans during the quarter. The allowance to total loans was 1.09% compared to 1.10% at year-end 2016. The allowance to nonperforming and restructured loans was 171.6% compared to 137.3% at year-end 2016.

CEO David Rainbolt commented, "Our results this quarter provided great optics in absolute terms. However, even absent the favorable outcome in nonperforming loans, it was still a sound performance."

BancFirst Corporation is an Oklahoma based financial services holding company.  The Company's principal subsidiary bank, BancFirst, is Oklahoma's largest state-chartered bank with 100 banking locations serving 53 communities across Oklahoma. More information can be found at www.bancfirst.com.

The Company may make forward-looking statements within the meaning of Section 27A of the securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 with respect to earnings, credit quality, corporate objectives, interest rates and other financial and business matters.  Forward-looking statements include estimates and give management's current expectations or forecasts of future events.  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.