Loans Held for Investment and Allowance for Credit Losses on Loans (Tables)

12 Months Ended

Dec. 31, 2020

Receivables [Abstract]

Summary of Loans Held for Investment by Portfolio Segment

Loans held for investment are summarized by portfolio segment as follows:

	December 31,
	2020		2019
	Amount		Amount
	(Dollars in thousands)
BancFirst
Real estate:
Commercial real estate owner occupied	$	641,987	$	621,188
Commercial real estate non-owner occupied		971,158		851,200
Construction and development < 60 months		229,615		287,138
Construction residential real estate < 60 months		206,195		189,480
Residential real estate first lien		853,316		834,849
Residential real estate all other		168,081		187,647
Farmland		252,958		246,988
Commercial and agricultural non-real estate		1,159,810		1,315,005
Consumer non-real estate		355,405		359,529
Oil and gas		179,355		184,399
Other loans (2)		822,078		154,015
Pegasus Bank		554,548		430,705
Total loans (1)	$	6,394,506	$	5,662,143
(1) Excludes accrued interest receivable of $26.0 million at December 31, 2020 and $24.5 million at December 31, 2019, that is recorded in accrued interest receivable and other assets.
(2) Includes PPP loans of $652.7 million, net of unamortized processing fees of $14.5 million at December 31, 2020.

Summary of Troubled Debt Restructurings and Other Real Estate Owned and Repossessed Assets

The following is a summary of troubled debt restructurings and other real estate owned and repossessed assets:

	December 31,
	2020		2019
	(Dollars in thousands)
Troubled debt restructurings	$	7,784	$	18,010
Other real estate owned and repossessed assets	$	32,480	$	6,073

Summary of Amounts Included in Nonaccrual Loans Segregated by Portfolio Segment

The following table is a summary of amounts included in nonaccrual loans, segregated by portfolio segment.

	December 31, 2020
	(Dollars in thousands)
BancFirst
Real estate:
Commercial real estate owner occupied	$	1,404
Commercial real estate non-owner occupied		4,719
Construction and development < 60 months		95
Construction residential real estate < 60 months		—
Residential real estate first lien		3,615
Residential real estate all other		1,362
Farmland		7,901
Commercial and agricultural non-real estate		12,782
Consumer non-real estate		268
Oil and gas		—
Other loans		5,399
Pegasus Bank		—
Total	$	37,545
	December 31, 2019
	(Dollars in thousands)
BancFirst
Real estate:
Non-residential real estate owner occupied	$	2,275
Non-residential real estate other		1,815
Residential real estate permanent mortgage		1,206
Residential real estate other		3,060
Non-consumer non-real estate		2,915
Consumer other		264
Other loans		1,083
Acquired loans		4,496
Pegasus Bank		851
Total	$	17,965

Age Analysis of Loans Held for Investments

Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. The following table presents an age analysis of our loans held for investment:

	Age Analysis of Past Due Loans
	30-59 Days Past Due		60-89 Days Past Due		90 Days and Greater		Total Past Due Loans		Current Loans		Total Loans		Accruing Loans 90 Days or More Past Due
	(Dollars in thousands)
As of December 31, 2020
BancFirst
Real estate:
Commercial real estate owner occupied	$	1,096	$	108	$	1,164	$	2,368	$	639,619	$	641,987	$	—
Commercial real estate non-owner occupied		323		—		34		357		970,801		971,158		35
Construction and development < 60 months		511		86		—		597		229,018		229,615		—
Construction residential real estate < 60 months		1,106		—		282		1,388		204,807		206,195		282
Residential real estate first lien		5,428		1,463		2,978		9,869		843,447		853,316		945
Residential real estate all other		520		55		1,606		2,181		165,900		168,081		384
Farmland		1,297		344		6,223		7,864		245,094		252,958		135
Commercial and agricultural non-real estate		2,788		1,794		4,345		8,927		1,150,883		1,159,810		465
Consumer non-real estate		2,154		501		534		3,189		352,216		355,405		386
Oil and gas		—		—		—		—		179,355		179,355		—
Other loans		951		1,223		6,618		8,792		813,286		822,078		2,170
Pegasus Bank		—		—		—		—		554,548		554,548		—
Total	$	16,174	$	5,574	$	23,784	$	45,532	$	6,348,974	$	6,394,506	$	4,802
As of December 31, 2019
BancFirst
Real estate:
Non-residential real estate owner occupied	$	1,600	$	967	$	5,159	$	7,726	$	699,690	$	707,416	$	3,799
Non-residential real estate other		971		—		1,228		2,199		1,134,976		1,137,175		—
Residential real estate permanent mortgage		4,705		973		2,215		7,893		332,679		340,572		1,660
Residential real estate other		4,496		1,028		2,541		8,065		912,767		920,832		549
Non-consumer non-real estate		2,290		1,446		1,763		5,499		1,448,894		1,454,393		354
Consumer other		2,829		858		592		4,279		358,075		362,354		491
Other loans		1,670		8		4,613		6,291		147,724		154,015		4,426
Acquired loans		2,167		1,376		3,447		6,990		147,691		154,681		555
Pegasus Bank		—		—		851		851		429,854		430,705		—
Total	$	20,728	$	6,656	$	22,409	$	49,793	$	5,612,350	$	5,662,143	$	11,834

Gross Loans Held for Investment by Year of Origination and Internally Assigned Credit Grades

The following table summarizes our gross loans held for investment by year of origination and internally assigned credit grades:

	Term Loans Amortized Cost Basis by Origination Year
	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Total
	(Dollars in thousands)
As of December 31, 2020
BancFirst
Commercial real estate owner occupied
Grade 1	$	142,574	$	91,493	$	73,845	$	42,289	$	37,097	$	88,724	$	17,153	$	493,175
Grade 2		42,375		31,314		11,516		9,644		13,316		25,574		4,393		138,132
Grade 3		4,226		32		333		704		1,259		2,671		—		9,225
Grade 4		37		66		742		—		251		52		307		1,455
Total commercial real estate owner occupied loans		189,212		122,905		86,436		52,637		51,923		117,021		21,853		641,987
Commercial real estate non-owner occupied
Grade 1		256,128		157,526		83,869		69,864		82,088		81,499		13,206		744,180
Grade 2		60,607		48,751		26,441		18,070		8,755		41,491		4,454		208,569
Grade 3		7,718		3,137		472		1,937		40		148		149		13,601
Grade 4		4,719		89		—		—		—		—		—		4,808
Total commercial real estate non-owner occupied loans		329,172		209,503		110,782		89,871		90,883		123,138		17,809		971,158
Construction and development < 60 months
Grade 1		115,399		56,369		12,821		4,582		1,438		2,048		7,850		200,507
Grade 2		11,528		10,002		1,589		764		157		540		582		25,162
Grade 3		3,842		—		9		—		—		—		—		3,851
Grade 4		—		64		9		22		—		—		—		95
Total construction and development < 60 months		130,769		66,435		14,428		5,368		1,595		2,588		8,432		229,615
Construction residential real estate < 60 months
Grade 1		159,431		4,214		69		21		33		23		11,449		175,240
Grade 2		27,400		580		112		—		—		468		390		28,950
Grade 3		1,885		120		—		—		—		—		—		2,005
Total construction residential real estate < 60 months		188,716		4,914		181		21		33		491		11,839		206,195
Residential real estate first lien
Grade 1		241,771		134,184		80,793		64,392		48,686		136,059		—		705,885
Grade 2		28,305		19,425		21,742		11,666		12,365		34,312		—		127,815
Grade 3		2,754		2,029		1,375		2,073		1,213		5,194		—		14,638
Grade 4		730		733		478		210		1,186		1,590		—		4,927
Grade 5		—		—		—		—		51		—		—		51
Total residential real estate first lien		273,560		156,371		104,388		78,341		63,501		177,155		—		853,316
Residential real estate all other
Grade 1		21,493		13,944		10,854		6,265		5,381		10,984		28,047		96,968
Grade 2		3,694		1,675		1,268		1,809		450		2,335		55,433		66,664
Grade 3		384		461		328		116		119		221		993		2,622
Grade 4		204		217		570		65		34		715		22		1,827
Total residential real estate all other		25,775		16,297		13,020		8,255		5,984		14,255		84,495		168,081
Farmland
Grade 1		51,284		26,391		18,994		13,821		13,368		27,100		8,160		159,118
Grade 2		15,264		30,684		6,639		6,391		4,763		8,916		7,140		79,797
Grade 3		3,681		290		151		1,055		703		551		1,955		8,386
Grade 4		414		14		4,058		296		340		223		312		5,657
Total farmland		70,643		57,379		29,842		21,563		19,174		36,790		17,567		252,958
Commercial and agricultural non-real estate
Grade 1		206,515		136,254		124,657		74,719		46,453		33,471		270,426		892,495
Grade 2		49,467		34,659		27,239		6,566		7,054		22,710		63,894		211,589
Grade 3		24,793		1,511		1,466		789		271		327		14,577		43,734
Grade 4		7,231		1,607		652		241		1,139		163		959		11,992
Total commercial and agricultural non-real estate		288,006		174,031		154,014		82,315		54,917		56,671		349,856		1,159,810
Consumer non-real estate
Grade 1		166,934		93,232		41,449		13,157		4,471		1,768		7,673		328,684
Grade 2		12,773		5,902		3,399		796		499		266		328		23,963
Grade 3		445		840		450		175		75		63		2		2,050

Grade 4		89		287		144		94		47		40		7		708
Total consumer non-real estate		180,241		100,261		45,442		14,222		5,092		2,137		8,010		355,405
Oil and gas
Grade 1		104,622		66		82		—		—		4,679		16,529		125,978
Grade 2		42,713		745		—		—		—		—		9,919		53,377
Total oil and gas		147,335		811		82		—		—		4,679		26,448		179,355
Other loans
Grade 1		685,426		32,392		25,707		20,638		16,378		10,341		22,976		813,858
Grade 2		—		—		17		2,936		1,126		2,179		692		6,950
Grade 3		—		—		78		—		53		67		36		234
Grade 4		—		—		—		124		208		33		671		1,036
Total other loans		685,426		32,392		25,802		23,698		17,765		12,620		24,375		822,078
Pegasus Bank
Grade 1		100,631		66,875		27,235		19,025		12,414		44,237		113,824		384,241
Grade 2		28,187		26,733		6,774		23,367		3,822		5,300		74,671		168,854
Grade 3		123		—		—		—		—		1,330		—		1,453
Total Pegasus Bank		128,941		93,608		34,009		42,392		16,236		50,867		188,495		554,548
Total loans held for investment	$	2,637,796	$	1,034,907	$	618,426	$	418,683	$	327,103	$	598,412	$	759,179	$	6,394,506

The following table presents internal loan grading by class of loans as of December 31, 2019:

	Internal Loan Grading
	Grade
		1		2		3		4		5	Total
	(Dollars in thousands)
As of December 31, 2019
BancFirst
Real estate:
Non-residential real estate owner occupied	$	554,942	$	130,783	$	15,191	$	6,500	$	—	$	707,416
Non-residential real estate other		861,108		252,134		23,048		868		17		1,137,175
Residential real estate permanent mortgage		289,350		41,754		6,975		2,442		51		340,572
Residential real estate other		722,983		179,951		14,382		3,446		70		920,832
Non-consumer non-real estate		1,166,155		261,003		25,276		1,959		—		1,454,393
Consumer other		335,916		23,407		2,327		704		—		362,354
Other loans		148,692		3,631		1,564		128		—		154,015
Acquired loans		88,205		55,087		6,800		4,446		143		154,681
Pegasus Bank		295,243		133,324		1,287		851		—		430,705
Total	$	4,462,594	$	1,081,074	$	96,850	$	21,344	$	281	$	5,662,143

Activity in Allowance for Credit Losses on Loans

The following table details activity in the allowance for credit losses on loans for the period presented. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

	Allowance for Credit Losses
	Balance at beginning of period		Impact of CECL adoption			Initial allowance on loans purchased with credit deterioration		Charge- offs			Recoveries		Net charge-offs			Provision for credit losses on loans			Balance at end of period
	(Dollars in thousands)
Year ended December 31, 2020
BancFirst
Real estate:
Commercial real estate owner occupied	$	5,625	$	(2,806	)	$	432	$	(773	)	$	10	$	(763	)	$	4,547		$	7,035
Commercial real estate non-owner occupied		8,358		(5,507	)		—		(3,609	)		—		(3,609	)		12,600			11,842
Construction and development < 60 months		2,214		(1,056	)		—		(59	)		123		64			1,338			2,560
Construction residential real estate < 60 months		1,933		(778	)		—		(29	)		—		(29	)		(499	)		627
Residential real estate first lien		8,692		(3,831	)		7		(465	)		44		(421	)		(1,877	)		2,570
Residential real estate all other		2,767		(1,408	)		—		(126	)		54		(72	)		943			2,230
Farmland		2,821		(1,408	)		1		(2,055	)		—		(2,055	)		3,777			3,136
Commercial and agricultural non-real estate		13,462		13,195			62		(3,320	)		116		(3,204	)		8,885			32,400
Consumer non-real estate		3,252		(622	)		—		(1,142	)		224		(918	)		1,665			3,377
Oil and gas		1,883		(1,346	)		—		(11,245	)		—		(11,245	)		28,559			17,851
Other loans		2,632		(116	)		—		(168	)		10		(158	)		824			3,182
Pegasus Bank		599		2,488			—		(841	)		424		(417	)		1,886			4,556
Total	$	54,238	$	(3,195	)	$	502	$	(23,832	)	$	1,005	$	(22,827	)	$	62,648		$	91,366
Year ended December 31, 2019
BancFirst
Real estate:
Non-residential real estate owner occupied	$	6,328	$	—		$	—	$	(34	)	$	25	$	(9	)	$	721		$	7,040
Non-residential real estate other		11,027		—			—		(67	)		42		(25	)		155			11,157
Residential real estate permanent mortgage		3,261		—			—		(146	)		22		(124	)		250			3,387
Residential real estate other		10,673		—			—		(2,697	)		30		(2,667	)		2,143			10,149
Non-consumer non-real estate		13,151		—			—		(514	)		272		(242	)		2,432			15,341
Consumer other		3,065		—			—		(868	)		218		(650	)		904			3,319
Other loans		2,423		—			—		—			90		90			119			2,632
Acquired loans		1,461		—			—		(2,060	)		219		(1,841	)		994			614
Pegasus Bank		—		—			—		—			30		30			569			599
Total	$	51,389	$	—		$	—	$	(6,386	)	$	948	$	(5,438	)	$	8,287		$	54,238

Allowance for Credit Losses Outstanding by Impairment Methodology

The following table details the amount of allowance for credit losses by class of loans for the period presented, on the basis of impairment methodology used by the Company.

	Allowance for Credit Losses
	December 31, 2019
	Individually evaluated for impairment		Collectively evaluated for impairment
	(Dollars in thousands)
BancFirst
Real estate:
Non-residential real estate owner occupied	$	900	$	6,140
Non-residential real estate other		990		10,167
Residential real estate permanent mortgage		531		2,856
Residential real estate other		2,026		8,123
Non-consumer non-real estate		2,902		12,439
Consumer other		343		2,976
Other loans		13		2,619
Acquired loans		—		614
Pegasus Bank		—		599
Total	$	7,705	$	46,533

Loans Outstanding by Impairment Methodology

The following table details the loans outstanding by class of loans for the period presented, on the basis of the impairment methodology used by the Company

	Loans
	December 31, 2019
	Individually evaluated for impairment		Collectively evaluated for impairment		Loans acquired with deteriorated credit quality
	(Dollars in thousands)
BancFirst
Real estate:
Non-residential real estate owner occupied	$	21,690	$	685,726	$	—
Non-residential real estate other		23,933		1,113,242		—
Residential real estate permanent mortgage		9,468		331,104		—
Residential real estate other		17,898		902,934		—
Non-consumer non-real estate		27,016		1,427,377		—
Consumer other		3,090		359,264		—
Other loans		231		153,784		—
Acquired loans		10,470		143,351		860
Pegasus Bank		—		428,567		2,138
Total	$	113,796	$	5,545,349	$	2,998

Purchased Credit Deteriorated Loans

The Company has purchased loans, for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination. The purchased credit deteriorated loans for the period are as follows:

	Loans acquired with deteriorated credit quality
	(Dollars in thousands)
For the year ended December 31, 2020
Purchase price of loans at acquisition	$	1,761
Allowance for credit losses at acquisition		502
Par value of acquired loans at acquisition	$	2,263

Collateral-Dependent Gross Loans Held for Investment by Collateral Type and Related Specific Allocation

The following table summarizes collateral-dependent gross loans held for investment by collateral type and the related specific allocation as follows:

	Collateral Type
	Real Estate		Business Assets		Energy Reserves		Other Assets		Total		Specific Allocation
As of December 31, 2020	(Dollars in thousands)
BancFirst
Real estate:
Commercial real estate owner occupied	$	848	$	—	$	—	$	—	$	848	$	226
Commercial real estate non-owner occupied		4,719		—		—		—		4,719		1,000
Construction and development < 60 months		—		—		—		—		—		—
Construction residential real estate < 60 months		—		—		—		—		—		—
Residential real estate first lien		860		—		—		—		860		151
Residential real estate all other		866		—		—		—		866		616
Farmland		3,258		—		—		—		3,258		1,114
Commercial and agricultural non-real estate		—		8,460		—		413		8,873		2,813
Consumer non-real estate		—		—		—		109		109		58
Oil and gas		—		—		—		—		—		—
Other loans		—		13		—		—		13		12
Pegasus Bank		1,257		—		—		—		1,257		222
Total collateral-dependent loans held for investment	$	11,808	$	8,473	$	—	$	522	$	20,803	$	6,212

Impaired Loans Segregated by Class of Loans

The following table presents impaired loans, segregated by class of loans.

	Impaired Loans
	Unpaid Principal Balance		Recorded Investment with Allowance		Related Allowance		Average Recorded Investment
	(Dollars in thousands)
As of December 31, 2019
BancFirst
Real estate:
Non-residential real estate owner occupied	$	13,253	$	13,000	$	514	$	12,868
Non-residential real estate other		3,973		3,678		300		3,946
Residential real estate permanent mortgage		3,445		3,129		242		2,968
Residential real estate other		7,117		4,487		946		5,567
Non-consumer non-real estate		11,598		11,012		1,005		11,085
Consumer other		969		836		97		844
Other loans		5,711		5,510		105		1,130
Acquired loans		6,421		5,108		2		5,472
Pegasus Bank		2,960		2,138		—		2,161
Total	$	55,447	$	48,898	$	3,211	$	46,041

Transfers from Loans and Premises and Equipment to Other Real Estate Owned, Repossessed Assets and Other Assets

Transfers from loans and premises and equipment to other real estate owned, repossessed assets, and other assets during the periods presented are summarized as follows:

	Year ended December 31,
	2020		2019		2018
	(Dollars in thousands)
Other real estate owned	$	32,093	$	3,941	$	5,437
Repossessed assets		1,418		1,473		1,122
Other assets		11,105		—		—
Total	$	44,616	$	5,414	$	6,559

Related Party Loans

A summary of these loans is as follows:

Year Ended December 31,	Balance Beginning of the Period		Additions		Collections/ Terminations			Balance End of the Period
	(Dollars in thousands)
2020	$	20,281	$	19,682	$	(17,906	)	$	22,057
2019		19,891		12,371		(11,981	)		20,281
2018		24,001		7,986		(12,096	)		19,891