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, 2023

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, 2023 there were 32,941,756 shares of the registrant’s Common Stock outstanding.

BancFirst Corporation

Quarterly Report on Form 10-Q

June 30, 2023

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		43

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements.

BANCFIRST CORPORATION

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

	June 30,			December 31,
	2023			2022
	(unaudited)			(see Note 1)
ASSETS
Cash and due from banks	$	221,138		$	259,049
Interest-bearing deposits with banks		2,188,004			2,909,861
Federal funds sold		4,481			2,850
Debt securities held for investment (fair value: $1,193 and $2,383, respectively)		1,193			2,383
Debt securities available for sale at fair value		1,569,427			1,538,221
Loans held for sale		8,783			6,232
Loans held for investment (net of unearned interest)		7,298,692			6,943,563
Allowance for credit losses		(96,920	)		(92,728	)
Loans, net of allowance for credit losses		7,201,772			6,850,835
Premises and equipment, net		279,758			278,088
Other real estate owned		41,270			36,756
Intangible assets, net		18,223			19,983
Goodwill		182,055			182,055
Accrued interest receivable and other assets		304,161			301,550
Total assets	$	12,020,265		$	12,387,863
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Noninterest-bearing	$	4,285,620		$	4,944,730
Interest-bearing		6,189,560			6,029,498
Total deposits		10,475,180			10,974,228
Short-term borrowings		3,893			300
Accrued interest payable and other liabilities		114,329			76,455
Subordinated debt		86,072			86,044
Total liabilities		10,679,474			11,137,027
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: 32,939,256 and 32,875,560, respectively		32,939			32,876
Capital surplus		172,358			169,231
Retained earnings		1,206,499			1,120,292
Accumulated other comprehensive loss, net of tax benefit of $21,953       and $22,107, respectively		(71,005	)		(71,563	)
Total stockholders' equity		1,340,791			1,250,836
Total liabilities and stockholders' equity	$	12,020,265		$	12,387,863

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,
	2023			2022			2023			2022
INTEREST INCOME
Loans, including fees	$	114,612		$	78,726		$	219,008		$	151,680
Debt securities:
Taxable		9,408			5,142			18,399			8,923
Tax-exempt		23			23			30			49
Federal funds sold		81			5			113			6
Interest-bearing deposits with banks		26,694			7,600			58,714			9,357
Total interest income		150,818			91,496			296,264			170,015
INTEREST EXPENSE
Deposits		43,732			3,586			78,909			5,567
Short-term borrowings		129			12			212			13
Subordinated debt		1,031			1,031			2,061			2,061
Total interest expense		44,892			4,629			81,182			7,641
Net interest income		105,926			86,867			215,082			162,374
Provision for credit losses		2,824			501			5,146			3,437
Net interest income after provision for credit losses		103,102			86,366			209,936			158,937
NONINTEREST INCOME
Trust revenue		4,590			3,949			8,812			7,455
Service charges on deposits		22,268			21,618			43,499			42,993
Securities transactions (includes accumulated other comprehensive loss reclassifications of $0, $0, $0 and $1,536, respectively)		110			—			(103	)		(3,915	)
Income from sales of loans		757			1,256			1,361			2,922
Insurance commissions		6,225			5,302			14,966			12,729
Cash management		7,927			4,447			14,661			7,578
Gain on sale of other assets		315			118			794			163
Other		5,782			5,908			11,812			16,323
Total noninterest income		47,974			42,598			95,802			86,248
NONINTEREST EXPENSE
Salaries and employee benefits		49,803			45,284			99,055			89,216
Occupancy, net		5,118			4,734			10,101			9,137
Depreciation		4,769			4,647			9,412			9,422
Amortization of intangible assets		880			857			1,760			1,688
Data processing services		2,217			1,975			4,324			3,780
Net expense from other real estate owned		2,889			(510	)		5,348			1,284
Marketing and business promotion		1,900			1,591			4,427			3,664
Deposit insurance		1,463			1,196			3,076			2,324
Other		12,071			13,943			23,924			25,714
Total noninterest expense		81,110			73,717			161,427			146,229
Income before taxes		69,966			55,247			144,311			98,956
Income tax expense		14,956			10,540			31,768			18,334
Net income	$	55,010		$	44,707		$	112,543		$	80,622
NET INCOME PER COMMON SHARE
Basic	$	1.67		$	1.36		$	3.42		$	2.46
Diluted	$	1.64		$	1.34		$	3.36		$	2.42
OTHER COMPREHENSIVE (LOSS)/GAIN
Unrealized (loss)/income on debt securities, net of tax benefit/(expense) of $4,350, $5,240, $(154) and $15,459, respectively		(14,091	)		(16,972	)		558			(49,805	)
Reclassification adjustment for loss included in net income, net of tax expense of $0, $0, $0 and $369, respectively		—			—			—			1,167
Other comprehensive (loss)/income, net of tax benefit/(expense) of $4,350, $5,240, $(154) and $15,090, respectively		(14,091	)		(16,972	)		558			(48,638	)
Comprehensive income	$	40,919		$	27,735		$	113,101		$	31,984

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,
	2023		2022		2023		2022
COMMON STOCK
Issued at beginning of period	$	32,900	$	32,726	$	32,876	$	32,603
Shares issued for stock options		39		55		63		178
Issued at end of period	$	32,939	$	32,781	$	32,939	$	32,781
CAPITAL SURPLUS
Balance at beginning of period