UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE 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.)

100 N. Broadway Ave., Oklahoma City, Oklahoma	73102-8405
(Address of principal executive offices)	(Zip Code)

(405) 270-1086

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $1.00 Par Value Per Share	BANF	NASDAQ Global Select Market System

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 ☒ No ☐.

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files). Yes ☒ No ☐.

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	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of July 31, 2022 there were 32,787,596 shares of the registrant’s Common Stock outstanding.

BancFirst Corporation

Quarterly Report on Form 10-Q

June 30, 2022

Table of Contents

Item	PART I – Financial Information	Page
1.	Financial Statements (Unaudited)	2
	Consolidated Balance Sheets	2
	Consolidated Statements of Comprehensive Income	3
	Consolidated Statements of Shareholders’ Equity	4
	Consolidated Statements of Cash Flow	5
	Notes to Consolidated Financial Statements	6
2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30
3.	Quantitative and Qualitative Disclosure About Market Risk	40
4.	Controls and Procedures	40
	PART II – Other Information
1.	Legal Proceedings	41
1A.	Risk Factors	41
2.	Unregistered Sales of Equity Securities	41
3.	Defaults Upon Senior Securities	41
4.	Mine Safety Disclosures	41
5.	Other Information	41
6.	Exhibits	42
Signatures		44

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements.

BANCFIRST CORPORATION

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

	June 30,			December 31,
	2022			2021
	(unaudited)			(see Note 1)
ASSETS
Cash and due from banks	$	289,030		$	228,819
Interest-bearing deposits with banks		3,590,311			1,821,203
Federal funds sold		1,525			800
Debt securities held for investment (fair value: $2,392 and $2,978, respectively)		2,391			2,977
Debt securities available for sale at fair value		1,203,503			531,523
Loans held for sale		7,360			24,776
Loans held for investment (net of unearned interest)		6,613,283			6,169,442
Allowance for credit losses		(86,935	)		(83,936	)
Loans, net of allowance for credit losses		6,526,348			6,085,506
Premises and equipment, net		279,609			269,047
Other real estate owned		39,097			39,475
Intangible assets, net		21,743			17,566
Goodwill		183,639			149,922
Accrued interest receivable and other assets		385,517			233,998
Total assets	$	12,530,073		$	9,405,612
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Noninterest-bearing	$	5,228,774		$	3,775,387
Interest-bearing		5,913,914			4,316,527
Total deposits		11,142,688			8,091,914
Short-term borrowings		6,100			—
Accrued interest payable and other liabilities		109,575			55,977
Subordinated debt		86,015			85,987
Total liabilities		11,344,378			8,233,878
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, 40,000,000 shares authorized; shares issued and       outstanding: 32,781,198 and 32,603,118, respectively		32,781			32,603
Capital surplus		165,295			159,914
Retained earnings		1,034,107			977,067
Accumulated other comprehensive (loss) income, net of tax of $14,406       and $(684), respectively		(46,488	)		2,150
Total stockholders' equity		1,185,695			1,171,734
Total liabilities and stockholders' equity	$	12,530,073		$	9,405,612

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						Six Months Ended
	June 30,						June 30,
	2022			2021			2022			2021
INTEREST INCOME
Loans, including fees	$	78,726		$	82,447		$	151,680		$	160,109
Debt securities:
Taxable		5,142			1,602			8,923			3,295
Tax-exempt		23			70			49			140
Federal funds sold		5			—			6			—
Interest-bearing deposits with banks		7,600			825			9,357			1,420
Total interest income		91,496			84,944			170,015			164,964
INTEREST EXPENSE
Deposits		3,586			2,003			5,567			4,325
Short-term borrowings		12			—			13			1
Subordinated debt		1,031			578			2,061			1,069
Total interest expense		4,629			2,581			7,641			5,395
Net interest income		86,867			82,363			162,374			159,569
Provision for (benefit from) credit losses		501			(9,949	)		3,437			(9,949	)
Net interest income after provision for (benefit from) credit losses		86,366			92,312			158,937			169,518
NONINTEREST INCOME
Trust revenue		3,949			3,264			7,455			6,366
Service charges on deposits		21,618			20,524			42,993			39,624
Securities transactions (includes accumulated other comprehensive loss reclassifications of $0, $0, $1,536 and $0, respectively)		—			172			(3,915	)		267
Income from sales of loans		1,256			2,133			2,922			4,143
Insurance commissions		5,302			5,015			12,729			11,004
Cash management		4,447			3,068			7,578			6,071
Gain on sale of other assets		118			73			163			2,712
Other		5,908			10,369			16,323			14,366
Total noninterest income		42,598			44,618			86,248			84,553
NONINTEREST EXPENSE
Salaries and employee benefits		45,284			41,992			89,216			81,569
Occupancy, net		4,734			4,528			9,137			8,876
Depreciation		4,647			4,133			9,422			8,010
Amortization of intangible assets		857			809			1,688			1,602
Data processing services		1,975			1,660			3,780			3,338
Net (income) expense from other real estate owned		(510	)		3,357			1,284			4,867
Marketing and business promotion		1,591			1,648			3,664			3,527
Deposit insurance		1,196			766			2,324			1,642
Other		13,943			15,130			25,714			25,555
Total noninterest expense		73,717			74,023			146,229			138,986
Income before taxes		55,247			62,907			98,956			115,085
Income tax expense		10,540			14,715			18,334			24,373
Net income	$	44,707		$	48,192		$	80,622		$	90,712
NET INCOME PER COMMON SHARE
Basic	$	1.36		$	1.47		$	2.46		$	2.77
Diluted	$	1.34		$	1.45		$	2.42		$	2.72
OTHER COMPREHENSIVE (LOSS) GAIN
Unrealized losses on debt securities, net of tax of $5,240, $472, $15,459 and $808, respectively		(16,972	)		(1,007	)		(49,805	)		(2,013	)
Reclassification adjustment for losses included in net income, net of tax of $0, $0, $(369) and $0, respectively		—			—			1,167			—
Other comprehensive loss, net of tax of $5,240, $472, $15,090 and $808, respectively		(16,972	)		(1,007	)		(48,638	)		(2,013	)
Comprehensive income	$	27,735		$	47,185		$	31,984		$	88,699

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				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
COMMON STOCK
Issued at beginning of period	$	32,726	$	32,771	$	32,603	$	32,720
Shares issued for stock options		55		14		178		65
Issued at end of period	$	32,781	$	32,785	$	32,781	$	32,785
CAPITAL SURPLUS
Balance at beginning of period	$	163,392	$	157,450	$	159,914	$	156,574
Common stock issued for stock options		1,443		399		4,463		1,657
Net cash settlement of options		—		—		—