8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 21, 2022

BancFirst Corporation

(Exact name of Registrant as Specified in Its Charter)

Oklahoma	0-14384	73-1221379
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)
100 N. Broadway Ave.
Oklahoma City, Oklahoma		73102-8405
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s Telephone Number, Including Area Code: 405 270-1086

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

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. ☐

Item 2.02 Results of Operations and Financial Condition.

BancFirst Corporation Reports Second Quarter Earnings

On July 21, 2022, BancFirst Corporation announced its results of operations for the quarter ended June 30, 2022. A copy of the related press release is being filed as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference in its entirety.

Item 9.01 Financial Statements and Exhibits.

(d)	Exhibits.
Exhibit No.	Description
99.1	Press Release, dated July 21, 2022, issued by BancFirst Corporation titled “BancFirst Corporation Reports Second Quarter Earnings.”
104	Cover Page Interactive Data File (embedded within the inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

			BANCFIRST CORPORATION
Date:	July 21, 2022	By:	/s/ Kevin Lawrence
			Kevin Lawrence Executive Vice President Chief Financial Officer

EX-99.1

Exhibit 99.1

 

100 N. Broadway Ave

Oklahoma City, OK 73102

www.bancfirst.bank

FOR IMMEDIATE RELEASE

Thursday, July 21, 2022

BANCFIRST CORPORATION REPORTS SECOND QUARTER EARNINGS

BancFirst Corporation (NASDAQ GS:BANF) reported net income of $44.7 million, or $1.34 diluted earnings per share, for the second quarter of 2022 compared to net income of $48.2 million, or $1.45 diluted earnings per share, for the second quarter of 2021. Net income for the six months ended June 30, 2022 was $80.6 million, or $2.42 per share, compared to $90.7 million, or $2.72 per share, for the first half of 2021.

The Company’s net interest income for the second quarter of 2022 increased to $86.9 million from $82.4 million for the quarter ended June 30, 2021. Rising short term interest rates contributed to the increase. The net interest margin for the quarter was 3.05% and 3.32% a year ago. The margin for the second quarter of 2021 was positively impacted by higher PPP fees, which were $11.9 million compared to $400,000 for the current quarter.

For the second quarter of 2022 the Company recorded a provision for credit losses of $501,000 compared to a net benefit from reversal of provisions of $9.9 million for the quarter ended June 30, 2021. Provisions for credit losses have stabilized in 2022 after the economic downturn and recovery from the effects of the COVID pandemic.

Noninterest income for the quarter totaled $42.6 million down from $44.6 million last year. The decrease in noninterest income in 2022 was attributable to a purchase gain of $6.0 million in the second quarter of 2021. Total noninterest expense for the current quarter was relatively flat at $73.7 million but included a gain of $3.1 million from the sale of the Company’s prior headquarters that was carried in other real estate owned, as well as a write down of an equity investment of $1.5 million.

The Company’s effective tax rate was 19.1% compared to 23.4% for the second quarter of 2021. The lower effective tax rate was driven by the exercising of stock options during the quarter that produced higher tax deductions for compensation, and a lower state income tax rate.

At June 30, 2022, the Company’s total assets were $12.5 billion compared to $9.4 billion at December 31, 2021. Deposits totaled $11.1 billion, an increase of $3.1 billion from December 31, 2021. The balance sheet growth was driven by the return of customer deposits from off-balance sheet sweep accounts, continued deposit growth and the acquisition of Worthington National Bank. Loans totaled $6.6 billion compared to $6.2 billion at December 31, 2021. Loan growth during the first two quarters of 2022, net of acquired loans and PPP, was $247 million, or 4%. The Company’s total stockholders’ equity was $1.2 billion, an increase of $14 million over December 31, 2021.

Asset quality remained strong as nonaccrual loans continued to decline, totaling $13.7 million, which represented 0.21% of total loans at June 30, 2022, down from 0.34% at year-end 2021. The allowance for credit losses to total loans stood at 1.31% at June 30, 2022 down from 1.36% at the end of 2021.

BancFirst Corporation CEO David Harlow commented, “The Company performed well in the second quarter with meaningful core margin expansion as a result of the 150 basis points of increase in the fed funds rate since tightening began in March. All eyes continue to be on the Fed and to what degree its policy will be successful in bringing inflation under control without sending the economy into recession. Regardless of the ultimate outcome, the Company is well positioned with a strong capital base, a credit culture that has outperformed through various cycles, and an Oklahoma/DFW footprint positioned for long-term, sustainable growth.”

1

BancFirst Corporation (the Company) is an Oklahoma based financial services holding company. The Company operates three subsidiary banks, BancFirst, an Oklahoma state-chartered bank with 107 banking locations serving 59 communities across Oklahoma, Pegasus Bank, with three banking locations in Dallas, TX and Worthington National Bank with one location in Arlington, Texas, one location in Colleyville, Texas and two Fort Worth, Texas locations. More information can be found at www.bancfirst.bank.

The Company may make 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, credit quality, corporate objectives, interest rates and other financial and business matters. Forward-looking statements include estimates and give management’s current expectations or forecasts of future events. The Company cautions readers that these forward-looking statements are subject to numerous assumptions, risks and uncertainties, including economic conditions, the performance of financial markets and interest rates; legislative and regulatory actions and reforms; competition; as well as other factors, all of which change over time. Actual results may differ materially from forward-looking statements.

For additional information call:

Kevin Lawrence, Chief Financial Officer at (405) 270-1003 or

David Harlow, Chief Executive Officer at (405) 270-1082.

2

BancFirstCorporation

Summary Financial Information

(Dollars in thousands, except per share and share data - Unaudited)

	2022			2022			2021			2021			2021
	2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr
Condensed Income Statements:
Net interest income	$	86,867		$	75,507		$	75,898		$	80,190		$	82,363
Provision for (benefit from) credit losses		501			2,936			(224	)		1,483			(9,949	)
Non-interest income:
Trust revenue		3,949			3,506			3,336			3,210			3,264
Service charges on deposits		21,618			21,375			22,095			21,706			20,524
Securities transactions		-			(3,915	)		630			150			172
Income from sales of loans		1,256			1,666			1,545			1,594			2,133
Insurance commissions		5,302			7,427			6,075			6,666			5,015
Cash management		4,447			3,131			3,115			3,127			3,068
Other		6,026			10,460			8,897			3,333			10,442
Total noninterest income		42,598			43,650			45,693			39,786			44,618
Non-interest expense:
Salaries and employee benefits		45,284			43,932			42,887			42,267			41,992
Occupancy expense, net		4,734			4,403			4,521			5,086			4,528
Depreciation		4,647			4,775			4,708			4,207			4,133
Amortization of intangible assets		857			831			759			755			809
Data processing services		1,975			1,805			1,663			1,734			1,660
Net (income) expense from other real estate owned		(510	)		1,794			2,412			1,810			3,357
Marketing and business promotion		1,591			2,073			2,080			1,796			1,648
Deposit insurance		1,196			1,128			968			846			766
Other		13,943			11,771			16,783			11,713			15,130
Total noninterest expense		73,717			72,512			76,781			70,214			74,023
Income before income taxes		55,247			43,709			45,034			48,279			62,907
Income tax expense		10,540			7,794			6,866			9,529			14,715
Net income	$	44,707		$	35,915		$	38,168		$	38,750		$	48,192
Per Common Share Data:
Net income-basic	$	1.36		$	1.10		$	1.17		$	1.18		$	1.47
Net income-diluted		1.34			1.08			1.15			1.16			1.45
Cash dividends declared		0.36			0.36			0.36			0.36			0.34
Common shares outstanding		32,781,198			32,725,587			32,603,118			32,572,217			32,784,513
Average common shares outstanding -
Basic		32,749,752			32,666,916			32,585,784			32,744,104			32,779,227
Diluted		33,418,482			33,315,333			33,180,680			33,267,955			33,405,923
Performance Ratios:
Return on average assets		1.42	%		1.22	%		1.33	%		1.37	%		1.79	%
Return on average stockholders’ equity		15.14			12.33			13.02			13.42			17.42
Net interest margin		3.05			2.78			2.87			3.09			3.32
Efficiency ratio		56.94			60.85			63.15			58.52			58.29

3

BancFirstCorporation
Summary Financial Information
(Dollars in thousands, except per share and share data - Unaudited)
	Six months ended
	June 30,
	2022			2021
Condensed Income Statements:
Net interest income	$	162,374		$	159,569
Provision for (benefit from) credit losses		3,437			(9,949	)
Non-interest income:
Trust revenue		7,455			6,366
Service charges on deposits		42,993			39,624
Securities transactions		(3,915	)		267
Income from sales of loans		2,922			4,143
Insurance commissions		12,729			11,004
Cash management		7,578			6,071
Other		16,486			17,078
Total noninterest income		86,248			84,553
Non-interest expense:
Salaries and employee benefits		89,216			81,569
Occupancy expense, net		9,137			8,876
Depreciation		9,422			8,010
Amortization of intangible assets		1,688			1,602
Data processing services		3,780			3,338
Net expense from other real estate owned		1,284			4,867
Marketing and business promotion		3,664			3,527
Deposit insurance		2,324			1,642
Other		25,714			25,555
Total noninterest expense		146,229			138,986
Income before income taxes		98,956			115,085
Income tax expense		18,334			24,373
Net income	$	80,622		$	90,712
Per Common Share Data:
Net income-basic	$	2.46		$	2.77
Net income-diluted		2.42			2.72
Cash dividends declared		0.72			0.68
Common shares outstanding		32,781,198			32,784,513
Average common shares outstanding -
Basic		32,708,563			32,768,102
Diluted		33,366,799			33,407,693
Performance Ratios:
Return on average assets		1.32	%		1.74	%
Return on average stockholders’ equity		13.74			16.67
Net interest margin		2.92			3.34
Efficiency ratio		58.82			56.93

4

BancFirstCorporation
Summary Financial Information
(Dollars in thousands, except per share and share data - Unaudited)
	2022			2022			2021			2021			2021
	2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr
Balance Sheet Data:
Total assets	$	12,530,073		$	12,624,431		$	9,405,612		$	11,302,771		$	11,015,287
Interest-bearing deposits with banks		3,590,311			3,816,532			1,821,203			3,836,809			3,373,099
Debt securities		1,205,894			1,211,668			534,500			529,484			563,771
Total loans		6,620,643			6,504,477			6,194,218			6,037,886			6,207,262
Allowance for credit losses		(86,935	)		(87,239	)		(83,936	)		(86,463	)		(83,963	)
Deposits		11,142,688			11,250,971			8,091,914			9,992,044			9,728,389
Stockholders' equity		1,185,695			1,167,802			1,171,734			1,146,874			1,131,591
Book value per common share		36.17			35.68			35.94			35.21			34.52
Tangible book value per common share (non-GAAP)(1)		29.90			29.51			30.80			30.04			29.35
Balance Sheet Ratios:
Average loans to deposits		58.66	%		59.72	%		60.16	%		61.56	%		65.36	%
Average earning assets to total assets		90.89			91.92			92.13			92.13			92.01
Average stockholders' equity to average assets		9.40			9.86			10.19			10.22			10.25
Asset Quality Data:
Past due loans	$	4,771		$	6,360		$	4,964		$	5,186		$	4,386
Nonaccrual loans (5)		13,712			17,453			20,892			26,607			29,802
Restructured loans		2,174			2,345			3,665			7,073			7,485
Total nonperforming and restructured loans		20,657			26,158			29,521			38,866			41,673
Other real estate owned and repossessed assets		39,209			39,729			39,553			39,060			40,183
Total nonperforming and restructured assets		59,866			65,887			69,074			77,926			81,856
Nonaccrual loans to total loans		0.21	%		0.27	%		0.34	%		0.44	%		0.48	%
Nonaccrual loans to total Non-PPP loans (non-GAAP)(3)		0.21			0.27			0.34			0.46			0.51
Nonperforming and restructured loans to total loans		0.31			0.40			0.48			0.64			0.67
Nonperforming and restructured loans to total Non-PPP loans (non-GAAP)(3)		0.31			0.40			0.48			0.67			0.71
Nonperforming and restructured assets to total assets		0.48			0.52			0.73			0.69			0.74
Allowance to total loans		1.31			1.34			1.36			1.43			1.35
Allowance to total Non-PPP loans (non-GAAP)(3)		1.31			1.35			1.37			1.48			1.44
Allowance to nonaccrual loans		634.01			499.83			401.76			324.96			281.73
Allowance to nonperforming and restructured loans		420.84			333.51			284.33			222.46			201.48
Net charge-offs to average loans		0.01			0.00			0.03			0.01			0.06
Reconciliation of Tangible Book Value Per Common Share (non-GAAP)(2):
Stockholders' equity	$	1,185,695		$	1,167,802		$	1,171,734		$	1,146,874		$	1,131,591
Less goodwill		183,639			176,563			149,922			149,922			149,922
Less intangible assets, net		21,743			25,456			17,566			18,325			19,283
Tangible stockholders’ equity (non-GAAP)	$	980,313		$	965,783		$	1,004,246		$	978,627		$	962,386
Common shares outstanding		32,781,198			32,725,587			32,603,118			32,572,217			32,784,513
Tangible book value per common share (non-GAAP)	$	29.90		$	29.51		$	30.80		$	30.04		$	29.35
(1) Refer to the “Reconciliation of Tangible Book Value per Common Share (non-GAAP)” Table.
(2) Tangible book value per common share is stockholders’ equity less goodwill and intangible assets, net, divided by common shares outstanding. This amount is a non-GAAP financial measure but has been included as it is considered to be a critical metric with which to analyze and evaluate the financial condition and capital strength of the Company. This measure should not be considered a substitute for operating results determined in accordance with GAAP.
Reconciliation of Non-PPP loan ratios (non-GAAP)(4):
Total loans	$	6,620,643		$	6,504,477		$	6,194,218		$	6,037,886		$	6,207,262
Less PPP loans		3,206			30,605			80,412			201,208			368,620
Total Non-PPP loans (non-GAAP)	$	6,617,437		$	6,473,872		$	6,113,806		$	5,836,678		$	5,838,642
Nonaccrual loans (5)		13,712			17,453			20,892			26,607			29,802
Nonaccrual loans to total Non-PPP loans (non-GAAP)		0.21	%		0.27	%		0.34	%		0.46	%		0.51	%
Total nonperforming and restructured loans		20,657			26,158			29,521			38,866			41,673

5

Nonperforming and restructured loans to total Non-PPP loans (non-GAAP)	0.31	%	0.40	%	0.48	%	0.67	%	0.71	%
Allowance for credit losses	(86,935	)	(87,239	)	(83,936	)	(86,463	)	(83,963	)
Allowance to total Non-PPP loans (non-GAAP)	1.31	%	1.35	%	1.37	%	1.48	%	1.44	%
(3) Refer to the “Reconciliation of Non-PPP loan ratios (non-GAAP)” Table.
(4) Nonaccrual loans to total Non-PPP loans is nonaccrual loans, divided by total loans less Paycheck Protection Program (PPP) loans. Nonperforming and restructured loans to total Non-PPP loans is nonperforming and restructured loans, divided by total loans less PPP loans. Allowance to total Non-PPP loans is allowance for credit losses, divided by total loans less PPP loans. These amounts are non-GAAP financial measures but have been included as they are considered critical metrics with which to analyze and evaluate the financial condition and capital strength of the Company. These measures should not be considered substitutes for operating results determined in accordance with GAAP.
(5) Government Agencies guarantee approximately $2.1 million of nonaccrual loans at June 30, 2022.

6

BancFirst Corporation

Consolidated Average Balance Sheets

And Interest Margin Analysis

Taxable Equivalent Basis

(Dollars in thousands - Unaudited)

	Three Months Ended								Six Months Ended
	June 30, 2022								June 30, 2022
				Interest		Average						Interest		Average
	Average			Income/		Yield/			Average			Income/		Yield/
	Balance			Expense		Rate			Balance			Expense		Rate
ASSETS
Earning assets:
Loans	$	6,566,437		$	78,836		4.82	%	$	6,463,687		$	151,902	4.74		%
Debt securities – taxable		1,192,371			5,142		1.73			1,149,037			8,923		1.57
Debt securities – tax exempt		3,682		28		3.08				4,225		62			2.95
Interest bearing deposits with banks and FFS		3,686,883			7,605		0.83			3,618,260			9,363		0.52
Total earning assets		11,449,373			91,611		3.21			11,235,209			170,250	3.06
Nonearning assets:
Cash and due from banks		291,470								280,304
Interest receivable and other assets		943,850								864,988
Allowance for credit losses		(87,434	)							(86,337	)
Total nonearning assets		1,147,886								1,058,955
Total assets	$	12,597,259							$	12,294,164
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest bearing liabilities:
Transaction deposits	$	977,424		$	212	0.09		%	$	959,898		$	403	0.08		%
Savings deposits		4,328,065			2,733		0.25			4,249,720			3,874	0.18
Time deposits		665,660			641		0.39			659,907			1,290	0.39
Short-term borrowings		6,716			12		0.72			4,599		13			0.56
Subordinated debt		86,006			1,031	4.81				85,999			2,061	4.83
Total interest bearing liabilities		6,063,871			4,629		0.31			5,960,123			7,641	0.26
Interest free funds:
Noninterest bearing deposits		5,223,063								5,053,996
Interest payable and other liabilities		126,279								97,146
Stockholders’ equity		1,184,046								1,182,899
Total interest free funds		6,533,388								6,334,041
Total liabilities and stockholders’ equity	$	12,597,259							$	12,294,164
Net interest income				$	86,982							$	162,609
Net interest spread							2.90	%							2.80	%
Effect of interest free funds							0.15	%							0.12	%
Net interest margin							3.05	%						2.92		%

7

XML

Document And Entity Information	Jul. 21, 2022
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jul. 21, 2022
Entity Registrant Name	BancFirst Corporation
Entity Central Index Key	0000760498
Entity Emerging Growth Company	false
Entity File Number	0-14384
Entity Incorporation, State or Country Code	OK
Entity Tax Identification Number	73-1221379
Entity Address, Address Line One	100 N. Broadway Ave.
Entity Address, City or Town	Oklahoma City
Entity Address, State or Province	OK
Entity Address, Postal Zip Code	73102-8405
City Area Code	405
Local Phone Number	270-1086
Entity Information, Former Legal or Registered Name	Not Applicable
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, $1.00 Par Value Per Share
Trading Symbol	BANF
Security Exchange Name	NASDAQ