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 September 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 October 31, 2022 there were 32,870,566 shares of the registrant’s Common Stock outstanding.

BancFirst Corporation

Quarterly Report on Form 10-Q

September 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	41
	PART II – Other Information
1.	Legal Proceedings	42
1A.	Risk Factors	42
2.	Unregistered Sales of Equity Securities	42
3.	Defaults Upon Senior Securities	42
4.	Mine Safety Disclosures	42
5.	Other Information	42
6.	Exhibits	43
Signatures		45

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements.

BANCFIRST CORPORATION

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

	September 30,			December 31,
	2022			2021
	(unaudited)			(see Note 1)
ASSETS
Cash and due from banks	$	227,026		$	228,819
Interest-bearing deposits with banks		3,106,279			1,821,203
Federal funds sold		3,878			800
Debt securities held for investment (fair value: $2,386 and $2,978, respectively)		2,386			2,977
Debt securities available for sale at fair value		1,519,259			531,523
Loans held for sale		4,823			24,776
Loans held for investment (net of unearned interest)		6,827,772			6,169,442
Allowance for credit losses		(89,871	)		(83,936	)
Loans, net of allowance for credit losses		6,737,901			6,085,506
Premises and equipment, net		278,159			269,047
Other real estate owned		39,242			39,475
Intangible assets, net		20,863			17,566
Goodwill		182,055			149,922
Accrued interest receivable and other assets		330,507			233,998
Total assets	$	12,452,378		$	9,405,612
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Noninterest-bearing	$	5,203,437		$	3,775,387
Interest-bearing		5,855,503			4,316,527
Total deposits		11,058,940			8,091,914
Short-term borrowings		4,600			—
Accrued interest payable and other liabilities		107,659			55,977
Subordinated debt		86,030			85,987
Total liabilities		11,257,229			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: 32,856,387 and 32,603,118, respectively		32,856			32,603
Capital surplus		168,217			159,914
Retained earnings		1,076,316			977,067
Accumulated other comprehensive (loss) income, net of tax of $25,439       and $(684), respectively		(82,240	)		2,150
Total stockholders' equity		1,195,149			1,171,734
Total liabilities and stockholders' equity	$	12,452,378		$	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						Nine Months Ended
	September 30,						September 30,
	2022			2021			2022			2021
INTEREST INCOME
Loans, including fees	$	87,078		$	80,249		$	238,758		$	240,358
Debt securities:
Taxable		6,793			1,484			15,716			4,779
Tax-exempt		22			35			71			175
Federal funds sold		24			—			30			—
Interest-bearing deposits with banks		20,095			1,441			29,452			2,861
Total interest income		114,012			83,209			284,027			248,173
INTEREST EXPENSE
Deposits		11,999			1,988			17,566			6,313
Short-term borrowings		36			—			49			1
Subordinated debt		1,030			1,031			3,091			2,100
Total interest expense		13,065			3,019			20,706			8,414
Net interest income		100,947			80,190			263,321			239,759
Provision for (benefit from) credit losses		2,863			1,483			6,300			(8,466	)
Net interest income after provision for (benefit from) credit losses		98,084			78,707			257,021			248,225
NONINTEREST INCOME
Trust revenue		4,125			3,210			11,580			9,576
Service charges on deposits		22,161			21,706			65,154			61,330
Securities transactions (includes accumulated other comprehensive loss reclassifications of $0, $0, $1,536 and $0, respectively)		966			150			(2,949	)		417
Income from sales of loans		969			1,594			3,891			5,737
Insurance commissions		7,498			6,666			20,227			17,670
Cash management		5,624			3,127			13,202			9,198
Gain on sale of other assets		53			34			216			2,746
Other		7,935			3,299			24,258			17,665
Total noninterest income		49,331			39,786			135,579			124,339
NONINTEREST EXPENSE
Salaries and employee benefits		47,741			42,267			136,957			123,836
Occupancy, net		4,930			5,086			14,067			13,962
Depreciation		4,612			4,207			14,034			12,217
Amortization of intangible assets		880			755			2,568			2,357
Data processing services		1,876			1,734			5,656			5,072
Net expense from other real estate owned		2,392			1,810			3,676			6,677
Marketing and business promotion		1,945			1,796			5,609			5,323
Deposit insurance		1,202			846			3,526			2,488
Other		13,500			11,713			39,214			37,268
Total noninterest expense		79,078			70,214			225,307			209,200
Income before taxes		68,337			48,279			167,293			163,364
Income tax expense		12,985			9,529			31,319			33,902
Net income	$	55,352		$	38,750		$	135,974		$	129,462
NET INCOME PER COMMON SHARE
Basic	$	1.69		$	1.18		$	4.15		$	3.95
Diluted	$	1.65		$	1.16		$	4.07		$	3.88
OTHER COMPREHENSIVE (LOSS) GAIN
Unrealized losses on debt securities, net of tax of $11,033, $172, $26,492 and $980, respectively		(35,752	)		(552	)		(85,557	)		(2,565	)
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 $11,033, $172, $26,123 and $980, respectively		(35,752	)		(552	)		(84,390	)		(2,565	)
Comprehensive income	$	19,600		$	38,198		$	51,584		$	126,897

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				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
COMMON STOCK
Issued at beginning of period	$	32,781	$	32,785	$	32,603	$	32,720
Shares issued for stock options		75