Enid Bank Readies Full-Service Branch in Tulsa

Central National Bank and Trust Co. of Enid is planning a major push into the full-service banking realm in the Tulsa market with the opening of a branch at 4880 S. Lewis Ave.
The bank will move from its loan production office at 8023 E. 63rd Place, Ste. 100, into a 7,000-SF space in the former Community Bank & Trust building and expects to open the facility Oct. 13, said Kip Herburger, senior vice president and east regional manager.
CNB hired Herburger, formerly president of Citizens Bank of Oklahoma, 3353 E. 41st St., to oversee the bank’s operations in the eastern part of the state, Herburger said.
“We are looking for big things for Tulsa and the eastern part of the state,” he said. “We are coming here to make a presence. We have been here and we have a foundation; now we are going to take it to the next level. We will increase our marketing efforts, open this up as a full-service branch and service the retail as well as commercial customer.”
CNB opened the LPO in July 2007, noting the location would “contribute to the bank’s ongoing expansion plan and to the increasing expectations of the Enid-based bank’s production goals.”
Herburger said the LPO has built a loan portfolio of about $35 million, out of a bank-wide loan total of about $423 million. The bank’s assets stood at $516 million as of March 31, 2009.
Tracy Anderson, vice president of the Retail Division for CNB, said the bank is in a growth mode and it sees the expansion into the Tulsa market as a key to that goal.
“The bank as a whole wants to be a $1 billion bank,” she said. “The growth here is going to be better in Tulsa than it is in maybe some of the smaller communities.”
Anderson said the bank has experienced significant growth recently.
“We went from about $360 million to half a billion in two to three years,” she said.
That growth includes the opening of a new branch in Bartlesville about three years ago and a new branch in Enid last year. Other branches serve markets in Blackwell, Mooreland and Woodward. Herburger will oversee the Tulsa, Bartlesville and Blackwell locations.
Herburger comes to CNB with experience in building a bank in the Tulsa market. In the nearly five years he spent at Citizens Bank, the branches’ loan portfolio grew from about $30 million to about $130 million.
Anderson said CNB’s service products, including cash management, lock box, remote deposit capture and its own stored value cards, will put it in standing with larger banks in the market. The stored value cards, which are marketed nationwide, is a product of Interactive Transaction Services, a subsidiary of CNB.
“For our size bank, we pretty much compete with the big banks on products and services,” she said. “We have a whole fleet of products.”
He said that while CNB is well known in the communities where it currently operates, since it has only operated as an LPO in the Tulsa market, it is not widely known here.
“The goal is to establish a presence here and turn it into a full-service location with the potential for expansion down the road,” he said. “Nobody knows who we are right now, but next year, that is going to change.”
BancFirst Corp. Reports Second Quarter Earnings
Oklahoma City-based BancFirst Corp. reported net income of $6.3 million or $0.40 diluted earnings per share for the second quarter of 2009, compared to core earnings a year ago of $9.2 million or $0.59 diluted earnings per share.
This quarter’s results include a $1.3 million after-tax expense for the FDIC Special Assessment. Last year’s second quarter results of $13.7 million or $0.89 diluted earnings per share included one-time gains of $4.5 million, after tax.
For the six months ended June 30, 2009, net income was $13.4 million or $0.86 diluted earnings per share compared to $25.3 million or $1.63 diluted earnings per share. The results for the six months of 2008 included one-time gains of $5.7 million, after tax.
For the second quarter of 2009, net interest income was $32.5 million compared to $34.8 million for the second quarter of 2008. While the company’s earning assets have grown to $4 billion at June 30, an increase of $500 million from a year ago, the historically low interest rate environment and modest loan demand has caused the net interest margin to compress. The company’s net interest margin for the second quarter was 3.44 percent, down from 4.08 percent a year ago.
The loan loss provision for the quarter was $4.9 million which compares to $3.5 million for the same period in 2008. This quarter’s provision was driven primarily by a small number of commercial credits that exceeded 90 days past due. Although it is possible a majority of the loans in question could be rehabilitated to performing status, the provisions were made consistent with the company’s loan reserve methodology. Nonperforming loans were 1.35 percent of total assets, up from 0.85 percent in the previous quarter of 2009. Net charge-offs for the quarter were 0.33 percent of loans, which compares to 0.13 percent in the previous quarter.
At June 30, 2009, the company’s total assets were $4.3 billion, an increase of $427 million or 11.1 percent over a year ago. Loans totaled $2.7 billion, up $129 million over June 30, 2008. Deposits increased $412 million to $3.8 billion, an increase of 12.2 percent over a year ago. Equity capital was $419 million or 9.8 percent of total assets at quarter end. BancFirst did not participate in the U.S. Treasury’s Capital Purchase Program.
David Rainbolt, CEO of BancFirst, said, “Our capital is strong and our liquidity is exceptional with overnight funds of $800 million at quarter end. We believe BancFirst is positioned to take advantage of any opportunities that arise, from new loan relationships to potential bank acquisitions.”
Commerce Bancshares Earnings Per Share $.48
Kansas City-based Commerce Bancshares, Inc. announced earnings of $.48 per share for the quarter ended June 30, 2009 compared to $.40 per share in the previous quarter and $.74 per share in the second quarter of 2008.
Net income for the second quarter amounted to $37 million compared to $30.8 million in the previous quarter and $56 million in the same period last year. For the quarter, the return on average assets totaled .84 percent and the return on average equity was 8.9 percent. During the quarter, the ratio of tangible common equity to total assets increased from 8.2 percent to 8.9 percent.
For the six months ended June 30, 2009, earnings per share totaled $.88 compared to $1.58 for the first six months of last year. Net income amounted to $67.8 million in the first half of 2009 compared with $120.1 million in 2008, or a decline of $52.3 million. This decline resulted mainly from higher loan loss provisions and FDIC insurance expense in 2009.
In making this announcement, David W. Kemper, chairman and CEO, said, “Although the overall economy remains difficult, we are pleased to report an increase in net income over the previous quarter as a result of growth in net interest income, higher core fees and good expense control. While loan balances declined this quarter, average deposits grew 5 percent over the previous quarter, providing an increase in overall earning assets and contributing to solid growth in net interest income.”
Kemper said, “This quarter we continued to strengthen our balance sheet by improving liquidity, increasing capital and building our loan loss reserves. Tangible common equity increased $90 million this quarter through retained earnings, appreciation of our securities portfolio and stock issuance. During the quarter we increased our allowance for loan losses by $5.1 million to $186 million, representing 1.74 percent of outstanding loans. Non-performing assets, consisting of non-accrual loans and foreclosed property, grew by $13 million to $131.7 million, or 1.23 percent of loans. Our loan to deposit ratio totaled 82 percent this quarter, reflecting good overall liquidity.”
Total assets at June 30, 2009 were $17.7 billion, loans were $11.1 billion, and deposits were $13.7 billion.
UMB Financial Corp. Reports Earnings Per Share of $0.47
Kansas City-based UMB Financial Corp. announced earnings for the three months ended June 30, 2009, of $19 million or $.47 per share ($.47 diluted). This is a decrease of $4.7 million, or 19.8 percent, compared to second quarter 2008 earnings of $23.7 million or $.58 per share ($.58 diluted). This decrease is the result of an increase in regulatory fees of $4.6 million after tax.
These regulatory fees include the Federal Deposit Insurance Corp. special assessment, the increase in routine quarterly FDIC assessments and the expenses related to the Transaction Account Guarantee Program.
Earnings for the six months ended June 30, 2009 were $41.6 million or $1.03 per share ($1.02 diluted). This is a decrease of $14.5 million, or 25.8 percent, compared to the prior year earnings of $56.1 million or $1.37 per share ($1.36 diluted). Excluding the Visa-related transactions in the first quarter of 2008, net income for the first six months of 2009 decreased $6.2 million, or 13 percent, compared to the same period in 2008. The previously mentioned regulatory fees were $5.3 million after tax, which represents the majority of the remaining decrease.
“The majority of the change to our earnings this quarter compared to the second quarter of 2008 is the regulatory fees levied on insured banks,” said Mariner Kemper, chairman and CEO of UMB Financial Corp. “These fees, including a higher FDIC base assessment and an additional special assessment, represent 86 percent of the decline in net income year-over-year. It’s unfortunate that banks like UMB that did not contribute to the financial crisis must share in this burden, but we understand our responsibility to the industry. We remain focused on factors we can control: Investing in our fee businesses, maximizing efficiencies, growing loans and deposits, managing our capital base and delivering the unparalleled customer experience.”
Stanfield & O’Dell Admits Hays as Shareholder of Firm
Stanfield & O’Dell, P.C., has admitted David Hays, CPA, as shareholder of the firm.
A native Oklahoman, Hays began his public accounting career after receiving his bachelor’s and master’s degrees in accounting from Oklahoma State University. He has more than 30 years of international firm public accounting experience in Tulsa, providing audit and related services primarily to privately-owned but also to publicly-held clients in a variety of industries, including energy, insurance, public sector/non-profit, and manufacturing. Hays will assume a primary leadership role in the firm’s audit department.
Hays is a member of the AICPA, the Oklahoma Society of CPAs and the OSCPA’s Tulsa Chapter, and is a past president of both the OSCPA and Tulsa Chapter. He is also an alumnus of Leadership Tulsa, is a past board chairman of Special Olympics Oklahoma, and serves as a board member and treasurer for YMCA of Greater Tulsa.
Marjorie Brenner has joined Stanfield & O’Dell as a senior audit manager. Brenner is from Colorado, where she has more than 12 years of experience in both public and private sector in auditing as well as experience in managing and supervising audits of colleges, universities, manufacturing firms, governmental units and exempt organizations.
Brenner is a member of the AICPA and the Colorado Society of Certified Public Accountants and has a Bachelor of Science in accounting from Mesa State College in Grand Junction, Colo.
Ernst & Young Promotes Partner, Tax Executive Director in Tulsa
Ernst & Young LLP has promoted William Buergler to tax partner in the firm’s Tulsa office.
Buergler has been with Ernst & Young for more than seven years, providing tax services and serving as a tax account leader for clients in a variety of industries, including the energy and utility industries.
Buergler received bachelor’s and master’s in accounting from Oklahoma State University.
Sue Morris was promoted to tax executive director in the firm’s Tulsa office.
Morris has been with Ernst & Young for more than 11 years and had seven years of public accounting experience. She provides advisory and compliance tax services to clients in a variety of industries, including health care, oil and gas, and private equity and real estate funds.
Morris received a Bachelor of Science in accounting from The University of Tulsa.
UMB Bank Tulsa Names Commercial Lender
Scott Rowe has joined UMB Bank in Tulsa as vice president in the Commercial Banking Division.
Rowe returned to Tulsa after spending the past two and a half years in Richmond, Va., as a commercial lender for The Bank of Virginia. Prior to his move to Virginia, Rowe was employed by J.P. Morgan Chase in Tulsa. He has been in banking since 2001.
Rowe is a graduate of Oklahoma State University.
Arvest Asset Management Adds Investment Client VP
Arvest Asset Management has hired Tammy Blair to serve as vice president, investment client advisor.
Blair, who has 21 years of investment experience, will be responsible for assisting customers in the areas of retirement planning, business investment and risk management consulting, as well as providing individual investment and insurance advice.
Blair, a Chartered Retirement Planning Counselor, will work at the 91st and Elm branch in Broken Arrow.
Bank of West Names Manager For New Mexico, Oklahoma
Mike Lowrimore has been promoted to regional manager responsible for two of the three branch banking regions in the Bank of the West Southwest Division. His new role includes managing all branch operations for the 27 branches in New Mexico and 18 in Oklahoma.
With more than 29 years of banking experience, Lowrimore joined Bank of the West in 2006, serving most recently as senior vice president and regional manager for the state of New Mexico responsible for all 27 branches. He holds a BBA in business management from the University of New Mexico’s Anderson School of Business and is a graduate of the Colorado School of Banking.

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