Slide 1: BancFirst: Stay Loyal to Oklahoma & You
Banckirst ay Loyal | To Oklahoma & You:
Slide 2: BancFirst Corporation Profile
Relationship Banking • 143,000 retail households and 33,000 commercial relationships • Largest state chartered bank in Oklahoma • Primarily funded by core deposits • 95 locations in 52 Oklahoma communities including the MSAs of Oklahoma City, Tulsa, Muskogee and Lawton Commercial Focus in MSAs • Sup
Slide 3: Conservative Credit Culture and Acquisition Strategy
Conservative Credit Culture • Aggressive loan review function; proactive portfolio management • Historically low problem loan and charge off ratios Acquisition and Integration Strategy • Communities with a diversified employment base and reasonable growth • Disciplined analysis, pricing and structur
Slide 4: 2014 Highlights
2014 Highlights • Record earnings of $64 million, $4.04 diluted earnings per share • Acquisition of The Bank of Union, El Reno with $75 million in loans and $174 million in deposits • Loan growth of $474 million or 14% over 2013 4
Slide 5: Primary Risk Factors
Primary Risk Factors • Changes to the Oklahoma economy o Oil prices o Commercial real estate • Threats to noninterest income o Interchange revenue – payment system changes; consumer regulation o Overdraft fees – consumer regulation • Continued low interest rates • Competition paying interest on busi
Slide 6: Locations
Banclirst ey Loyal | ‘To Oklahoma Locations * 95 Staffed Offices + 52 Communities * 29 Counties 23 County seat communities * 300+ Total ATMs including Oklahoma Walgreens, 7-Eleven, and EZ-Go ‘Blackwell Stillwater ‘Kingfisher © Guthrie Piedmont ® Choctaw Weatherford © #8 Reno_ # OKC Bal Citys amond «
Slide 7: Oklahoma Economic Overview
Oklahoma Economic Overview Source: Bureau of Labor Statistics & Department of Labor/ Haver Analytics 7
Slide 8: Oklahoma Economic Overview
Oklahoma Economic Overview Source: Bureau of Labor Statistics & Department of Labor/ Haver Analytics 8
Slide 9: Oklahoma Economic Overview
Oklahoma Economic Overview 9 Total collections of the Oklahoma Treasurer are down 2.8% from the prior year primarily due to a 48% drop in oil and natural gas production receipts.
Slide 10: Total Deposits
Total Deposits $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 Sweeps Total Deposits Balance Sheet • Average annual deposit growth was 8.4% in the last 10 years. • Growth from acquisitions was 1.8% compared to 6.6% organic growth. ($ in millions) 10
Slide 11: Deposit Mix
Demand Deposits 39% Interest - Bearing Transaction Accounts, 13% Savings 36% CDs < $100,000 7% CDs > $100,000 6% Deposit Mix 11
Slide 12: Total Loans
Balance Sheet • Average annual loan growth was 6.4% over the last 10 years. • Loan growth in 2014 was 14.0%. Total Loans ($ in Millions) Total Loans 1 9 9 3 1 9 9 4 1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1
Slide 13: Loan Portfolio Composition
RE 1 - 4 Family , 20% RE Comm - Investor , 18% Commercial , 20% RE Comm - Owner Occupied , 13% RE Constr , 9% Consumer , 7% RE Other , 6% Energy , 3% Agriculture , 3% Other , 1% Loan Portfolio Composition 13
Slide 14: Volume/Rate Analysis
Volume/Rate Analysis Volume Rate 2007 2008 2009 2010 2011 2012 2013 2014 $-30,000 $-20,000 $-10,000 $0 $10,000 $20,000 Change in Net Interest Income 14
Slide 15: Nonperforming Assets to Total Assets
FDIC Insured Institutions: Nonperforming Assets to Total Assets US OK BANF 2007 2008 2009 2010 2011 2012 2013 2014 0% 1% 2% 3% 4% 5% 15
Slide 16: Net Charge-Offs to Loans & Leases
FDIC Insured Institutions: Net Charge-Offs to Loans & Leases US OK BANF 2007 2008 2009 2010 2011 2012 2013 2014 0% 1% 2% 3% 16
Slide 17: Capital Ratios
Current Basel III BancFirst BancFirst Well Well (Bank) Corp Capitalized Capitalized Total Capital/Risk Assets 14.19% 15.32% > 10.00% > 10.50% Tier 1 Capital/Risk Assets 13.18% 14.31% > 6.00% > 8.50% Leverage Ratio 8.34% 9.06% > 5.00% > 7.00% (Tier 1 Capital/TA) Tang. Com. Eq./TA 12.81% 13.85% > 3.00
Slide 18: Net Interest Income
Net Interest Income 1 9 9 3 1 9 9 4 1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 M a r - 1 4 M a r - 1 5 $0 $100 $200 ( $ i n M i l l i o n s ) 18
Slide 19: Noninterest Income
Noninterest Income 0% 10% 20% 30% 40% 50% 60% $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 Noninterest Income Noninterest Income as Percentage of Noninterest Expense ($ in thousands) 19
Slide 20: Noninterest Income Mix
Overdraft Fees , 25% Interchange Fees, 26% Insurance Commissions , 15% Service Charges , 8% Cash Management , 7% Trust Revenue , 10% Secondary Mortgage Market , 2% Other , 8% Noninterest Income 20
Slide 21: Earnings Per Share
Earnings Per Share 1 9 9 3 1 9 9 4 1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 M a r - 1 4 M a r - 1 5 $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 21
Slide 22: Stock Performance vs. the General Market since IPO
• Average increase in common stock price since IPO has been 11.2% vs. S&P 500 of 6.5%. -200.0% 0.0% 200.0% 400.0% 600.0% 800.0% 1000.0% 1200.0% BANF S&P 500 Stock Performance vs. the General Market since IPO 22
Slide 23: Summary
Summary • Sustained asset quality • Strong capital • Sound relationships with both household and commercial customers • Exceptional liquidity; high level of core deposit funding; modest rate risk • Emphasis on non - interest income • Invested management • Acquisition/conversion expertise 23
Slide 24: One of America's Strongest Banks
One of America’s Strongest Banks 24
Slide 25: Forward-Looking Statements
Forward - Looking Statements This presentation contains 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 and other financial information, corporate objectives, and other busine