10-Q 1 banf-10q_20150331.htm 10-Q

 

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, 2015

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 30, 2015 there were 15,531,748 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,

 

 

March 31,

 

 

 

 

2015

 

 

 

2014

 

 

 

2014

 

 

 

(unaudited)

 

 

(see Note 1)

 

 

(unaudited)

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

187,416

 

 

$

203,545

 

 

$

225,547

 

Interest-bearing deposits with banks

 

 

1,699,265

 

 

 

1,710,350

 

 

 

1,737,559

 

Federal funds sold

 

 

1,000

 

 

 

 

 

 

3,000

 

Securities (fair value: $550,194, $524,861, and $587,100, respectively)

 

 

550,125

 

 

 

524,783

 

 

 

587,018

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

Total loans (net of unearned interest)

 

 

3,857,742

 

 

 

3,860,831

 

 

 

3,542,270

 

Allowance for loan losses

 

 

(41,557

)

 

 

(40,889

)

 

 

(39,924

)

Loans, net

 

 

3,816,185

 

 

 

3,819,942

 

 

 

3,502,346

 

Premises and equipment, net

 

 

122,786

 

 

 

121,341

 

 

 

121,354

 

Other real estate owned

 

 

6,246

 

 

 

7,859

 

 

 

7,328

 

Intangible assets, net

 

 

10,158

 

 

 

10,635

 

 

 

11,549

 

Goodwill

 

 

44,962

 

 

 

44,962

 

 

 

45,118

 

Accrued interest receivable and other assets

 

 

131,977

 

 

 

131,555

 

 

 

134,222

 

Total assets

 

$

6,570,120

 

 

$

6,574,972

 

 

$

6,375,041

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing

 

$

2,319,445

 

 

$

2,411,066

 

 

$

2,133,583

 

Interest-bearing

 

 

3,564,356

 

 

 

3,493,638

 

 

 

3,604,267

 

Total deposits

 

 

5,883,801

 

 

 

5,904,704

 

 

 

5,737,850

 

Short-term borrowings

 

 

2,043

 

 

 

3,982

 

 

 

8,603

 

Long-term borrowings

 

 

 

 

 

 

 

 

2,000

 

Accrued interest payable and other liabilities

 

 

35,793

 

 

 

30,168

 

 

 

31,672

 

Junior subordinated debentures

 

 

26,804

 

 

 

26,804

 

 

 

26,804

 

Total liabilities

 

 

5,948,441

 

 

 

5,965,658

 

 

 

5,806,929

 

Commitments and contingent liabilities

 

 

 

 

 

 

 

 

 

 

 

 

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: 15,512,545, 15,504,513 and 15,363,728, respectively

 

 

15,512

 

 

 

15,504

 

 

 

15,364

 

Capital surplus

 

 

97,477

 

 

 

96,841

 

 

 

89,951

 

Retained earnings

 

 

503,758

 

 

 

492,776

 

 

 

458,857

 

Accumulated other comprehensive income, net of income tax of $3,110,

   $2,644 and $2,486, respectively

 

 

4,932

 

 

 

4,193

 

 

 

3,940

 

Total stockholders' equity

 

 

621,679

 

 

 

609,314

 

 

 

568,112

 

Total liabilities and stockholders' equity

 

$

6,570,120

 

 

$

6,574,972

 

 

$

6,375,041

 

 

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,

 

 

 

 

2015

 

 

 

2014

 

INTEREST INCOME

 

 

 

 

 

 

 

 

Loans, including fees

 

$

45,949

 

 

$

42,649

 

Securities:

 

 

 

 

 

 

 

 

Taxable

 

 

1,399

 

 

 

1,305

 

Tax-exempt

 

 

246

 

 

 

280

 

Federal funds sold

 

 

 

 

 

5

 

Interest-bearing deposits with banks

 

 

1,062

 

 

 

1,090

 

Total interest income

 

 

48,656

 

 

 

45,329

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

Deposits

 

 

2,538

 

 

 

2,789

 

Short-term borrowings

 

 

1

 

 

 

2

 

Long-term borrowings

 

 

 

 

 

18

 

Junior subordinated debentures

 

 

491

 

 

 

491

 

Total interest expense

 

 

3,030

 

 

 

3,300

 

Net interest income

 

 

45,626

 

 

 

42,029

 

Provision for loan losses

 

 

1,334

 

 

 

1,218

 

Net interest income after provision for loan losses

 

 

44,292

 

 

 

40,811

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

Trust revenue

 

 

2,342

 

 

 

2,151

 

Service charges on deposits

 

 

13,352

 

 

 

13,458

 

Securities transactions

 

 

1,729

 

 

 

450

 

Income from sales of loans

 

 

440

 

 

 

351

 

Insurance commissions

 

 

4,068

 

 

 

3,966

 

Cash management

 

 

1,819

 

 

 

1,585

 

Gain on sale of other assets

 

 

40

 

 

 

5

 

Other

 

 

1,506

 

 

 

1,596

 

Total noninterest income

 

 

25,296

 

 

 

23,562

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

27,513

 

 

 

25,938

 

Occupancy and fixed assets expense, net

 

 

2,835

 

 

 

2,789

 

Depreciation

 

 

2,464

 

 

 

2,349

 

Amortization of intangible assets

 

 

444

 

 

 

408

 

Data processing services

 

 

1,117

 

 

 

1,170

 

Net expense from other real estate owned

 

 

314

 

 

 

550

 

Marketing and business promotion

 

 

1,679

 

 

 

1,716

 

Deposit insurance

 

 

826

 

 

 

773

 

Other

 

 

7,731

 

 

 

8,143

 

Total noninterest expense

 

 

44,923

 

 

 

43,836

 

Income before taxes

 

 

24,665

 

 

 

20,537

 

Income tax expense

 

 

(8,406

)

 

 

(5,880

)

Net income

 

$

16,259

 

 

$

14,657

 

NET INCOME PER COMMON SHARE

 

 

 

 

 

 

 

 

Basic

 

$

1.05

 

 

$

0.96

 

Diluted

 

$

1.03

 

 

$

0.94

 

OTHER COMPREHENSIVE INCOME

 

 

 

 

 

 

 

 

Unrealized gains (losses) on securities, net of tax of $(700) and $(403), respectively

 

 

1,111

 

 

 

65

 

Reclassification adjustment for gains included in net income, net of tax of $234 and $20,

   respectively

 

 

(372

)

 

 

(32

)

Other comprehensive gain (loss), net of tax of $(466) and $(383), respectively

 

 

739

 

 

 

33

 

Comprehensive income

 

$

16,998

 

 

$

14,690

 

 

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,

 

 

 

2015

 

 

2014

 

COMMON STOCK

 

 

 

 

 

 

 

 

Issued at beginning of period

 

$

15,504

 

 

$

15,334

 

Shares issued

 

 

8

 

 

 

30

 

Issued at end of period

 

$

15,512

 

 

$

15,364

 

CAPITAL SURPLUS

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

96,841

 

 

$

88,803

 

Common stock issued

 

 

236

 

 

 

878

 

Tax effect of stock options

 

 

(64

)

 

 

(77

)

Stock-based compensation arrangements

 

 

464

 

 

 

347

 

Balance at end of period

 

$

97,477

 

 

$

89,951

 

RETAINED EARNINGS

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

492,776

 

 

$

448,953

 

Net income

 

 

16,259

 

 

 

14,657

 

Dividends on common stock

 

 

(5,277

)

 

 

(4,753

)

Balance at end of period

 

$

503,758

 

 

$

458,857

 

ACCUMULATED OTHER COMPREHENSIVE INCOME

 

 

 

 

 

 

 

 

Unrealized gains on securities:

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

4,193

 

 

$

3,907

 

Net change

 

 

739

 

 

 

33

 

Balance at end of period

 

$

4,932

 

 

$

3,940

 

Total stockholders’ equity

 

$

621,679

 

 

$

568,112

 

 

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,

 

 

 

2015

 

 

2014

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

Net income

 

$

16,259

 

 

$

14,657

 

Adjustments to reconcile to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Provision for loan losses

 

 

1,334

 

 

 

1,218

 

Depreciation and amortization

 

 

2,908

 

 

 

2,757

 

Net amortization of securities premiums and discounts

 

 

148

 

 

 

276

 

Realized securities gains

 

 

(1,729

)

 

 

(450

)

Gain on sales of loans

 

 

(440

)

 

 

(351

)

Cash receipts from the sale of loans originated for sale

 

 

36,163

 

 

 

30,779

 

Cash disbursements for loans originated for sale

 

 

(37,393

)

 

 

(29,189

)

Deferred income tax benefit

 

 

(586

)

 

 

(1,934

)

Loss/(gain) on other assets

 

 

207

 

 

 

(62

)

(Increase)/decrease in interest receivable

 

 

(356

)

 

 

133

 

Decrease in interest payable

 

 

(20

)

 

 

(200

)

Amortization of stock-based compensation arrangements

 

 

464

 

 

 

347

 

Other, net

 

 

5,855

 

 

 

2,205

 

Net cash provided by operating activities

 

$

22,814

 

 

$

20,186

 

INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

Net (increase)/decrease in federal funds sold

 

 

(1,000

)

 

 

1,619

 

Net cash and due from banks received from acquisitions

 

 

 

 

174,645

 

Purchases of available for sale securities

 

 

(30,740

)

 

 

(99,914

)

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

 

 

311

 

 

 

718

 

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

 

 

6,144

 

 

 

44,920

 

Proceeds from sales of available for sale securities

 

 

1,729

 

 

 

498

 

Net change in loans

 

 

3,613

 

 

 

(46,429

)

Purchases of premises, equipment and computer software

 

 

(4,107

)

 

 

(3,154

)

Proceeds from the sale of other assets

 

 

1,955

 

 

 

812

 

Net cash (used in)/provided by investing activities

 

 

(22,095

)

 

 

73,715

 

FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

Net (decrease)/increase in demand, transaction and savings deposits

 

 

(6,257

)

 

 

80,601

 

Net decrease in time deposits

 

 

(14,646

)

 

 

(64,084

)

Net (decrease)/increase in short-term borrowings

 

 

(1,939

)

 

 

4,013

 

Paydown of long-term borrowings

 

 

 

 

(4,938

)

Issuance of common stock, net

 

 

180

 

 

 

831

 

Cash dividends paid

 

 

(5,271

)

 

 

(4,753

)

Net cash (used in)/provided by financing activities

 

 

(27,933

)

 

 

11,670

 

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

 

 

(27,214

)

 

 

105,571

 

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

 

 

1,913,895

 

 

 

1,857,535

 

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

 

$

1,886,681

 

 

$

1,963,106

 

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

 

 

 

 

 

 

 

 

Cash paid during the period for interest

 

$

3,050

 

 

$

2,991

 

Cash paid during the period for income taxes

 

$

600

 

 

$

850

 

Noncash investing and financing activities:

 

 

 

 

 

 

 

 

Unpaid common stock dividends declared

 

$

5,271

 

 

$

4,744

 

 

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, 2014.

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, 2014, 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, 2014, 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 February 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-02, “Consolidation (Topic 810) – Amendments to the Consolidation Analysis.” ASU 2015-02 implements changes to both the variable interest consolidation model and the voting interest consolidation model. ASU 2015-02 (i) eliminates certain criteria that must be met when determining when fees paid to a decision maker or service provider do not represent a variable interest, (ii) amends the criteria for determining whether a limited partnership is a variable interest entity and (iii)  eliminates the presumption that a general partner controls a limited partnership in the voting model. The amendments are effective for annual periods, and interim reporting periods within those annual periods, beginning after December 15, 2015. Adoption of ASU 2015-02 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

6


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.

In January 2014, the FASB issued Accounting Standards Update ASU No. 2014-04, “Receivables: Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure (Topic 310-40).”  ASU 2014-04 clarifies that an in-substance repossession or foreclosure occurs upon either the creditor obtaining legal title to the residential real estate property or the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. The amendments were effective for annual periods, and interim reporting periods within those annual periods, beginning after December 15, 2014. Adoption of ASU 2014-04 did not have a significant effect on the Company’s financial statements.

In January 2014, the FASB issued ASU No. 2014-01, “Accounting for Investments in Affordable Housing Projects (Topic 323).”  ASU 2014-01 revises the necessary criteria that need to be met in order for an entity to account for investments in affordable housing projects net of the provision for income taxes. It also changes the method of recognition from an effective amortization approach to a proportional amortization approach. Additional disclosures were also set forth in this update. The amendments were effective for annual periods, and interim reporting periods within those annual periods, beginning after December 15, 2014. The amendments were required to be applied retrospectively to all periods presented. Early adoption was permitted and adoption of the standard was optional. Adoption of ASU 2014-01 did not have a material impact on the Company's financial statements.

 

 

(2)

RECENT DEVELOPMENTS, INCLUDING MERGERS AND ACQUISITIONS

 

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.  

 

(3)

SECURITIES

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

 

 

 

March 31, 2015

 

 

 

(Dollars in thousands)

 

Held for investment, at cost (fair value: $8,350)

 

$

8,281

 

Available for sale, at fair value

 

 

541,844

 

Total

 

$

550,125

 

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

 

 

 

March 31, 2015

 

 

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Estimated

Fair

Value

 

 

 

(Dollars in thousands)

 

Mortgage backed securities (1)

 

$

439

 

 

$

32

 

 

$

 

 

$

471

 

States and political subdivisions

 

 

7,842

 

 

 

37

 

 

 

 

 

 

7,879

 

Total

 

$

8,281

 

 

$

69

 

 

$

 

 

$

8,350

 

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

 

 

 

March 31, 2015

 

 

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Estimated

Fair

Value

 

 

 

(Dollars in thousands)

 

U.S. treasuries

 

$

279,498

 

 

$

1,717

 

 

$

 

 

$

281,215

 

U.S. federal agencies

 

 

168,514

 

 

 

1,010

 

 

 

(62

)

 

 

169,462

 

Mortgage backed securities (1)

 

 

25,272

 

 

 

595

 

 

 

(567

)

 

 

25,300

 

States and political subdivisions

 

 

49,631

 

 

 

1,868

 

 

 

(19

)

 

 

51,480

 

Other securities (2)

 

 

10,887

 

 

 

3,633

 

 

 

(133

)

 

 

14,387

 

Total

 

$

533,802

 

 

$

8,823

 

 

$

(781

)

 

$

541,844

 

 

(1)

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

(2)

Primarily consists of equity securities.

7


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, 2015

 

 

 

Amortized

Cost

 

 

Estimated

Fair

Value

 

 

 

(Dollars in thousands)

 

Held for Investment

 

 

 

 

 

 

 

 

Contractual maturity of debt securities:

 

 

 

 

 

 

 

 

Within one year

 

$

1,373

 

 

$

1,380

 

After one year but within five years

 

 

6,399

 

 

 

6,429

 

After five years but within ten years

 

 

368

 

 

 

383

 

After ten years

 

 

141

 

 

 

158

 

Total

 

$

8,281

 

 

$

8,350

 

Available for Sale

 

 

 

 

 

 

 

 

Contractual maturity of debt securities:

 

 

 

 

 

 

 

 

Within one year

 

$

91,839

 

 

$

91,928

 

After one year but within five years

 

 

333,138

 

 

 

336,018

 

After five years but within ten years

 

 

16,864

 

 

 

17,653

 

After ten years

 

 

84,514

 

 

 

85,341

 

Total debt securities

 

 

526,355

 

 

 

530,940

 

Equity securities

 

 

7,447

 

 

 

10,904

 

Total

 

$

533,802

 

 

$

541,844

 

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, 2015

 

 

 

(Dollars in thousands)

 

Book value of pledged securities

 

$

482,193

 

 

 

(4)

LOANS AND ALLOWANCE FOR LOAN LOSSES

The following is a schedule of loans outstanding by category:

 

 

 

March 31, 2015

 

 

December 31, 2014

 

 

March 31, 2014

 

 

 

Amount

 

 

Percent

 

 

Amount

 

 

Percent

 

 

Amount

 

 

Percent

 

 

 

(Dollars in thousands)

 

Commercial and financial:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

747,470

 

 

 

19.38

%

 

$

745,106

 

 

 

19.30

%

 

$

676,084

 

 

 

19.09

%

Oil & gas production and equipment

 

 

102,342

 

 

 

2.65

 

 

 

104,940

 

 

 

2.72

 

 

 

99,382

 

 

 

2.80

 

Agriculture

 

 

122,186

 

 

 

3.17

 

 

 

132,830

 

 

 

3.44

 

 

 

109,570

 

 

 

3.09

 

State and political subdivisions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

18,055

 

 

 

0.47

 

 

 

20,431

 

 

 

0.53

 

 

 

9,824

 

 

 

0.28

 

Tax-exempt

 

 

25,374

 

 

 

0.66

 

 

 

20,952

 

 

 

0.54

 

 

 

11,219

 

 

 

0.32

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction

 

 

361,976

 

 

 

9.38

 

 

 

356,621

 

 

 

9.24

 

 

 

299,238

 

 

 

8.45

 

Farmland

 

 

145,494

 

 

 

3.77

 

 

 

149,507

 

 

 

3.87

 

 

 

141,059

 

 

 

3.98

 

One to four family residences

 

 

783,810

 

 

 

20.32

 

 

 

775,795

 

 

 

20.09

 

 

 

723,358

 

 

 

20.42

 

Multifamily residential properties

 

 

66,851

 

 

 

1.73

 

 

 

66,766

 

 

 

1.73

 

 

 

60,785

 

 

 

1.72

 

Commercial

 

 

1,192,581

 

 

 

30.91

 

 

 

1,191,477

 

 

 

30.86

 

 

 

1,134,384

 

 

 

32.02

 

Consumer

 

 

259,644

 

 

 

6.73

 

 

 

267,179

 

 

 

6.92

 

 

 

251,651

 

 

 

7.10

 

Other (not classified above)

 

 

31,959

 

 

 

0.83

 

 

 

29,227

 

 

 

0.76

 

 

 

25,716

 

 

 

0.73

 

Total loans

 

$

3,857,742

 

 

 

100.00

%

 

$

3,860,831

 

 

 

100.00

%

 

$

3,542,270

 

 

 

100.00

%

Loans held for sale (included above)

 

$

11,103

 

 

 

 

 

 

$

9,433

 

 

 

 

 

 

$

5,231

 

 

 

 

 

8


The Company’s loans are mostly to customers within Oklahoma and over 65% of the loans are secured by real estate.  Credit risk on loans is managed through limits on amounts loaned to individual borrowers, underwriting standards and loan monitoring procedures. The amounts and types of collateral obtained, if any, to secure loans are based upon the Company’s underwriting standards and management’s credit evaluation. Collateral varies, but may include real estate, equipment, accounts receivable, inventory, livestock and securities. The Company’s interest in collateral is secured through filing mortgages and liens, and in some cases, by possession of the collateral.

Accounting policies related to appraisals, nonaccruals and charge-offs are disclosed in Note (1) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.

Nonperforming and Restructured Assets

The following is a summary of nonperforming and restructured assets:

 

 

 

March 31,

 

 

December 31,

 

 

March 31,

 

 

 

2015

 

 

2014

 

 

2014

 

 

 

(Dollars in thousands)

 

Past due 90 days or more and still accruing

 

$

1,498

 

 

$

1,135

 

 

$

910

 

Nonaccrual

 

 

16,562

 

 

 

16,410

 

 

 

17,753

 

Restructured

 

 

16,131

 

 

 

16,515

 

 

 

17,468

 

Total nonperforming and restructured loans

 

 

34,191

 

 

 

34,060

 

 

 

36,131

 

Other real estate owned and repossessed assets

 

 

6,418

 

 

 

8,079

 

 

 

7,590

 

Total nonperforming and restructured assets

 

$

40,609

 

 

$

42,139

 

 

$

43,721

 

Nonperforming and restructured loans to total loans

 

 

0.89

%

 

 

0.88