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): January 21, 2021

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.)
101 North Broadway, Oklahoma City, OK		73102
(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 (see General Instructions A.2. below):

☐	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 System

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. ☐

Results of Operations and Financial Condition, Financial Statements and Exhibits

Item 2.02.  Results of Operations and Financial Condition.

BancFirst Corporation Reports Fourth Quarter Earnings

On January 21, 2021, BancFirst Corporation announced its results of operations for the quarter ended December 31, 2020. 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

99.1Press Release, dated January 21, 2021, issued by BancFirst Corporation titled “BancFirst Corporation Reports Fourth Quarter Earnings.”

104Cover Page Interactive Data File (embedded within the inline XBRL document).

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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 (Registrant)
Date: January 21, 2021	By:	/s/ Kevin Lawrence
		Kevin Lawrence
		Executive Vice President Chief Financial Officer

3

EX-99.1

Exhibit 99.1

BANCFIRST CORPORATION REPORTS FOURTH QUARTER EARNINGS

OKLAHOMA CITY, January 21, 2021 /PRNewswire/ -- BancFirst Corporation (NASDAQ GS:BANF) reported net income of $35.4 million, or $1.06 diluted earnings per share, for the fourth quarter of 2020 compared to net income of $35.5 million, or $1.07 diluted earnings per share, for the fourth quarter of 2019.  Net income for the twelve months ended December 31, 2020 was $99.6 million, or $3.00 diluted earnings per share, compared to $134.9 million, or $4.05 diluted earnings per share, for the year ended December 31, 2019. The results for 2020 were negatively impacted by a higher provision for credit losses. Net income for the year ended December 31, 2020 includes the entire year of net income of Pegasus Bank in Dallas, Texas, which was acquired on August 15, 2019, and the income and expenses associated with the purchase of assets and assumption of liabilities on March 5, 2020, from The Citizens State Bank of Okemah. The results for the prior year include Pegasus Bank acquisition related expenses of approximately $3.1 million.

The provision for credit losses for the fourth quarter of 2020 was $5.0 million compared to $1.4 million a year ago and $57.7 million through the first three quarters of 2020. BancFirst Corporation Executive Chairman David Rainbolt commented, “Our provision for credit losses was substantially reduced from previous quarters due to improvements in projected outcomes for the economic effects of the pandemic. The rollout of the vaccine and extension of the Cares Act stimulus, combined with improved energy prices and jobs data, justify a cessation to the outsized provisions seen in prior quarters.”

The Company’s net interest income for the fourth quarter of 2020 increased to $79.5 million compared to $73.9 million for the fourth quarter of 2019. Net interest income increased for the fourth quarter of 2020 due to loan growth, PPP fee income of approximately $8.0 million and the decrease in interest rates paid on deposits. The net interest margin for the quarter was 3.54% compared to 3.78% a year ago. The Company had net charge-offs for the quarter of 0.30% of average loans, compared to net charge-offs of 0.06% of average loans for the fourth quarter of 2019. Noninterest income for the quarter totaled $35.4 million, compared to $35.5 million last year. Noninterest expense for the quarter totaled $65.6 million compared to $66.3 million last year. Overall noninterest expense decreased during the fourth quarter of 2020 compared to the fourth quarter of 2019 primarily due to $2.3 million of amortization of new market tax credits in 2019. However, deposit insurance, net expense from other real estate owned, net occupancy and depreciation increased during the fourth quarter of 2020 compared to 2019. The Company’s effective tax rate was 20.3% compared to 15.0% for the fourth quarter of 2019.  The effective tax rate for the fourth quarter of 2019 was lower due to the purchase of tax credits during the quarter.

At December 31, 2020, the Company’s total assets were $9.2 billion, an increase of $646.6 million from December 31, 2019. Securities of $555.2 million were up $63.6 million from December 31, 2019. Loans totaled $6.4 billion, an increase of $775.1 million from December 31, 2019. Deposits totaled $8.1 billion, an increase of $581.1 million from the December 31, 2019 total. The increase in assets, loans and deposits were primarily related to the Paycheck Protection Program (PPP) and other government stimulus. At December 31, 2020, the balance of the Paycheck Protection Program loans was $652.7 million. The Company’s total stockholders’ equity was $1.1 billion, an increase of $62.9 million over December 31, 2019. Off-balance sheet sweep accounts were $2.7 billion at December 31, 2020 compared to $2.0 billion at December 31, 2019.

Nonaccrual loans represented 0.58% of total loans at December 31, 2020, up from 0.32% at year-end 2019, but down from 1.24% at September 30, 2020. Non-performing assets represented 0.90% of total assets at December 31, 2020, up from 0.63% at December 31, 2019 as a result of loan migration from non-accrual loans to other real estate owned (OREO) during the fourth quarter of 2020. The allowance to total loans was 1.42% at December 31, 2020, up from 0.96% at year-end 2019. The allowance to nonaccrual loans was approximately 243% at December 31, 2020, compared to 302% at year-end 2019, and 129% at September 30, 2020.

BancFirst Corporation CEO David Harlow commented, “In a very challenging year the Company was able to report earnings of $3.00 per diluted share while substantially building loan loss reserves, increasing our dividend for the 27th consecutive year and growing total stockholders’ equity and tangible book value per share.  The outlook for 2021 is certainly better today than we would have projected at the outset of the pandemic; however, many consumers and certain sectors of the economy continue to struggle and the ultimate outcome for many businesses when the stimulus subsides is far from certain.”

BancFirst Corporation (the Company) is an Oklahoma based financial services holding company.  The Company operates two subsidiary banks, BancFirst, is Oklahoma’s largest state-chartered bank with 107 banking locations serving 59 communities across Oklahoma, and Pegasus Bank, with 3 banking locations in Dallas, TX. 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.

1

BancFirstCorporation

Summary Financial Information

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

	2020			2020			2020			2020			2019
	4th Qtr			3rd Qtr			2nd Qtr			1st Qtr			4th Qtr
Condensed Income Statements:
Net interest income	$	79,535		$	75,852		$	77,208		$	74,073		$	73,939
Provision for credit losses		4,992			18,740			19,333			19,583			1,412
Non-interest income:
Trust revenue		2,976			3,131			3,368			3,655			3,682
Service charges on deposits		19,796			19,078			16,760			18,804			19,938
Securities transactions		156			—			(595	)		50			(9	)
Income from sales of loans		1,852			1,873			1,561			781			1,089
Insurance commissions		5,680			5,197			4,443			5,676			5,076
Cash management		3,135			3,701			4,255			4,320			4,258
Other		1,825			1,595			2,290			1,859			1,490
Total noninterest income		35,420			34,575			32,082			35,145			35,524
Non-interest expense:
Salaries and employee benefits		40,750			41,995			42,226			39,756			40,375
Occupancy expense, net		4,533			4,503			3,839			3,546			3,738
Depreciation		3,779			3,795			3,544			3,491			3,355
Amortization of intangible assets		915			968			968			964			1,007
Data processing services		1,763			1,669			1,629			1,692			1,634
Net expense from other real estate owned		420			196			(12	)		(2,135	)		(424	)
Marketing and business promotion		1,671			1,485			1,485			2,355			2,327
Deposit insurance		857			723			365			136			147
Other		10,923			10,749			10,607			11,580			14,137
Total noninterest expense		65,611			66,083			64,651			61,385			66,296
Income before income taxes		44,352			25,604			25,306			28,250			41,755
Income tax expense		8,994			4,714			4,576			5,642			6,248
Net income	$	35,358		$	20,890		$	20,730		$	22,608		$	35,507
Per Common Share Data:
Net income-basic	$	1.08		$	0.64		$	0.64		$	0.69		$	1.09
Net income-diluted		1.06			0.63			0.63			0.68			1.07
Cash dividends declared		0.34			0.34			0.32			0.32			0.32
Common shares outstanding		32,719,852			32,679,191			32,662,691			32,646,691			32,694,268
Average common shares outstanding -
Basic		32,690,296			32,668,789			32,651,262			32,679,587			32,673,438
Diluted		33,275,550			33,168,938			33,075,493			33,287,359			33,366,848
Performance Ratios:
Return on average assets		1.45	%		0.86	%		0.88	%		1.07	%		1.66	%
Return on average stockholders’ equity		13.25			7.89			7.99			8.87			13.76
Net interest margin		3.54			3.40			3.54			3.82			3.78
Efficiency ratio		57.08			59.84			59.16			56.20			60.56

2

BancFirstCorporation

Summary Financial Information

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

	Twelve months ended
	December 31,
	2020			2019
Condensed Income Statements:
Net interest income	$	306,668		$	281,921
Provision for credit losses		62,648			8,287
Non-interest income:
Trust revenue		13,130			13,599
Service charges on deposits		74,438			76,581
Securities transactions		(389	)		812
Income from sales of loans		6,067			3,619
Insurance commissions		20,996			20,296
Cash management		15,411			16,866
Other		7,569			5,456
Total noninterest income		137,222			137,229
Non-interest expense:
Salaries and employee benefits		164,727			153,024
Occupancy expense, net		16,421			12,704
Depreciation		14,609			12,623
Amortization of intangible assets		3,815			3,366
Data processing services		6,753			5,843
Net expense from other real estate owned		(1,531	)		(785	)
Marketing and business promotion		6,996			8,554
Deposit insurance		2,081			1,143
Other		43,859			44,829
Total noninterest expense		257,730			241,301
Income before income taxes		123,512			169,562
Income tax expense		23,926			34,683
Net income	$	99,586		$	134,879
Per Common Share Data:
Net income-basic	$	3.05		$	4.13
Net income-diluted		3.00			4.05
Cash dividends declared		1.32			1.24
Common shares outstanding		32,719,852			32,694,268
Average common shares outstanding -
Basic		32,672,522			32,639,396
Diluted		33,210,952			33,329,844
Performance Ratios:
Return on average assets		1.06	%		1.69	%
Return on average stockholders’ equity		9.52			14.04
Net interest margin		3.57			3.85
Efficiency ratio		58.06			57.57

3

BancFirstCorporation
Summary Financial Information
(Dollars in thousands, except per share and share data - Unaudited)
	2020			2020			2020			2020			2019
	4th Qtr			3rd Qtr			2nd Qtr			1st Qtr			4th Qtr
Balance Sheet Data:
Total assets	$	9,212,357		$	9,618,868		$	9,612,453		$	8,669,096		$	8,565,758
Interest-bearing deposits with banks		1,336,394			1,609,462			1,583,116			1,356,826			1,646,238
Debt securities		555,196			596,941			608,031			591,987			491,626
Total loans		6,448,225			6,660,694			6,696,856			6,006,065			5,673,144
Allowance for credit losses		(91,366	)		(106,126	)		(89,500	)		(70,080	)		(54,238	)
Deposits		8,064,704			8,495,891			8,486,671			7,573,200			7,483,635
Stockholders' equity		1,067,885			1,043,752			1,034,199			1,023,380			1,004,989
Book value per common share		32.64			31.94			31.66			31.35			30.74
Tangible book value per common share (non-GAAP)(1)		27.47			26.74			26.43			26.09			25.50
Balance Sheet Ratios:
Average loans to deposits		77.02	%		78.55	%		79.78	%		77.75	%		75.83	%
Average earning assets to total assets		91.82			91.99			92.23			91.51			91.50
Average stockholders' equity to average assets		10.91			10.90			10.96			12.02			12.04
Asset Quality Data:
Past due loans	$	4,802		$	6,412		$	5,382		$	10,065		$	11,834
Nonaccrual loans (5)		37,545			82,385			49,477			45,181			17,965
Restructured loans		7,784			2,837			3,213			3,158			18,010
Total nonperforming and restructured loans		50,131			91,634			58,072			58,404			47,809
Other real estate owned and repossessed assets		32,480			4,939			4,948			6,001			6,073
Total nonperforming and restructured assets		82,611			96,573			63,020			64,405			53,882
Nonaccrual loans to total loans		0.58	%		1.24	%		0.74	%		0.75	%		0.32	%
Nonaccrual loans to total Non-PPP loans (non-GAAP)(3)		0.65			1.41			0.84			0.75			0.32
Nonperforming and restructured loans to total loans		0.78			1.38			0.87			0.97			0.84
Nonperforming and restructured loans to total Non-PPP loans (non-GAAP)(3)		0.86			1.57			0.99			0.97			0.84
Nonperforming and restructured assets to total assets		0.90			1.00			0.66			0.74			0.63
Allowance to total loans		1.42			1.59			1.34			1.17			0.96
Allowance to total Non-PPP loans (non-GAAP)(3)		1.58			1.82			1.52			1.17			0.96
Allowance to nonaccrual loans		243.35			128.82			180.89			155.11			301.91
Allowance to nonperforming and restructured loans		182.26			115.81			154.12			119.99			113.45
Net charge-offs to average loans		0.30			0.03			0.00			0.02			0.06
Reconciliation of Tangible Book Value Per Common Share (non-GAAP)(2):
Stockholders' equity	$	1,067,885		$	1,043,752		$	1,034,199		$	1,023,380		$	1,004,989
Less goodwill		149,922			149,922			149,922			149,923			148,604
Less intangible assets, net		18,999			19,914			20,882			21,850			22,608
Tangible stockholders’ equity (non-GAAP)	$	898,964		$	873,916		$	863,395		$	851,607		$	833,777
Common shares outstanding		32,719,852			32,679,191			32,662,691			32,646,691			32,694,268
Tangible book value per common share (non-GAAP)	$	27.47		$	26.74		$	26.43		$	26.09		$	25.50
(1)Refer to the “Reconciliation of Tangible Book Value per Common Share (non-GAAP)” Table.

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(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	$	6,448,225		$	6,660,694		$	6,696,856		$	6,006,065		$	5,673,144
Less PPP loans		652,693			831,703			825,093			—			—
Total Non-PPP loans (non-GAAP)	$	5,795,532		$	5,828,991		$	5,871,763		$	6,006,065		$	5,673,144
Nonaccrual loans (5)		37,545			82,385			49,477			45,181			17,965
Nonaccrual loans to total Non-PPP loans (non-GAAP)		0.65	%		1.41	%		0.84	%		0.75	%		0.32	%
Total nonperforming and restructured loans		50,131			91,634			58,072			58,404			47,809
Nonperforming and restructured loans to total Non-PPP loans (non-GAAP)		0.86	%		1.57	%		0.99	%		0.97	%		0.84	%
Allowance for credit losses		(91,366	)		(106,126	)		(89,500	)		(70,080	)		(54,238	)
Allowance to total Non-PPP loans (non-GAAP)		1.58	%		1.82	%		1.52	%		1.17	%		0.96	%
(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 $7.8 million of nonaccrual loans at December 31, 2020.

5

BancFirst Corporation

Consolidated Average Balance Sheets

And Interest Margin Analysis

Taxable Equivalent Basis

(Dollars in thousands - Unaudited)

	Three Months Ended								Twelve Months Ended
	December 31, 2020								December 31, 2020
				Interest		Average						Interest		Average
	Average			Income/		Yield/			Average			Income/		Yield/
	Balance			Expense		Rate			Balance			Expense		Rate
ASSETS
Earning assets:
Loans	$	6,599,933		$	79,815		4.80	%	$	6,432,455		$	312,195		4.84	%
Securities – taxable		558,046			1,926		1.37			556,931			8,591		1.54
Securities – tax exempt		30,131			131		1.73			28,969			616		2.12
Federal funds sold and interest-bearing deposits with banks		1,719,900			463		0.11			1,562,383			6,049		0.39
Total earning assets		8,908,010			82,335		3.67			8,580,738			327,451		3.81
Nonearning assets:
Cash and due from banks		252,082								220,995
Interest receivable and other assets		638,173								611,966
Allowance for credit losses		(97,046	)							(76,501	)
Total nonearning assets		793,209								756,460
Total assets	$	9,701,219							$	9,337,198
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing liabilities:
Transaction deposits	$	711,266		$	131		0.07	%	$	744,632		$	940		0.13	%
Savings deposits		3,404,226			903		0.11			3,273,903			9,385		0.29
Time deposits		684,992			1,434		0.83			695,637			8,147		1.17
Short-term borrowings		1,075			-		0.07			2,745			8		0.30
Long-term borrowings		-			-		-			1,107			-		-
Junior subordinated debentures		26,804			492		7.29			26,804			1,966		7.31
Total interest-bearing liabilities		4,828,363			2,960		0.24			4,744,828			20,446		0.43
Interest-free funds:
Noninterest-bearing deposits		3,768,493								3,503,187
Interest payable and other liabilities		45,673								46,048
Stockholders’ equity		1,058,690								1,043,135
Total interest free funds		4,872,856								4,592,370
Total liabilities and stockholders’ equity	$	9,701,219							$	9,337,198
Net interest income				$	79,375							$	307,005
Net interest spread							3.43	%							3.38	%
Effect of interest free funds							0.11	%							0.19	%
Net interest margin							3.54	%							3.57	%

6

XML

Document and Entity Information	Jan. 21, 2021
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jan. 21, 2021
Entity Registrant Name	BANCFIRST CORP /OK/
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	101 North Broadway
Entity Address, City or Town	Oklahoma City
Entity Address, State or Province	OK
Entity Address, Postal Zip Code	73102
City Area Code	(405)
Local Phone Number	270-1086
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