8-K - BANF - Equibles

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON, 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): October 19, 2023

BancFirst Corporation

(Exact name of Registrant as Specified in Its Charter)

Oklahoma	0-14384	73-1221379
(State or Other Jurisdiction<br>of Incorporation)	(Commission File Number)	(IRS Employer<br>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
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Not Applicable
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(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<br>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 Third Quarter Earnings

On October 19, 2023, BancFirst Corporation announced its results of operations for the quarter ended September 30, 2023. 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 October 19, 2023, issued by BancFirst Corporation titled “BancFirst Corporation Reports Third 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:	October 19, 2023	By:	/s/ Kevin Lawrence
			Kevin Lawrence<br>Executive Vice President<br>Chief Financial Officer

EX-99.1

Exhibit 99.1

100 N. Broadway Ave

Oklahoma City, OK 73102

www.bancfirst.bank

FOR IMMEDIATE RELEASE

Thursday, October 19, 2023

BANCFIRST CORPORATION REPORTS THIRD QUARTER EARNINGS

BancFirst Corporation (NASDAQ GS:BANF) reported net income of $51.0 million, or $1.52 diluted earnings per share, for the third quarter of 2023 compared to net income of $55.4 million, or $1.65 diluted earnings per share, for the third quarter of 2022. Net income for the nine months ended September 30, 2023 was $163.5 million, or $4.88 per share, compared to $136.0 million, or $4.07 per share, for the nine months ended September 30, 2022.

The Company’s net interest income for the third quarter of 2023 increased to $104.3 million compared to $100.9 million for the quarter ended September 30, 2022. Rising short-term interest rates and loan growth drove the increase. The net interest margin for the quarter was 3.73% compared to 3.87% in the second quarter and 3.48% a year ago. The decrease in margin from the second quarter was largely due to an increase in deposit rates and a shift in deposit mix from noninterest bearing to interest bearing deposits. For the third quarter of 2023, the Company recorded a provision for credit losses of $2.3 million for loan growth, compared to $2.9 million for the third quarter of 2022.

Noninterest income for the quarter totaled $44.4 million, compared to $49.3 million last year. The decrease in noninterest income was attributable to the reduction of interchange fees of approximately $5.4 million related to the impact of the Durbin amendment as the Company now exceeds $10 billion in total assets. In addition, noninterest income for the third quarter of 2022 included $3.2 million of income from an equity interest received from a prior loan settlement, which was sold during the second quarter of 2023.

Noninterest expense for the quarter increased to $81.2 million compared to $79.1 million last year. Higher noninterest expense was primarily related to an increase in salaries and employee benefits of $2.5 million.

The Company’s effective tax rate for the period was 21.8% compared to 19.0% for the third quarter of 2022. During the first quarter of 2023, the Company adopted ASU 2023-02 which increased income tax expense. Additionally, the lower effective tax rate in 2022 stemmed from the exercise of stock options during the quarter.

At September 30, 2023, the Company’s total assets were $12.1 billion, a decrease of $273.3 million from December 31, 2022. Loans totaled $7.5 billion, an increase of $526.7 million from December 31, 2022. Liquidity remained strong with cash at $2.3 billion and a quarterly average loan to deposit ratio of 70.6% at September 30, 2023 compared to 62.3% at year-end. Deposits totaled $10.5 billion, $440.1 million below December 31, 2022 as some large commercial deposits moved from demand accounts into the Company’s off balance sheet sweep product. Sweep accounts totaled $4.0 billion at September 30, 2023 up $285.3 million from December 31, 2022. The Company continues to fund itself with community based deposits and does not use brokered or reciprocal deposits. The Company’s total stockholders’ equity was $1.4 billion, an increase of $119.7 million above December 31, 2022.

Asset quality remained strong with nonaccrual loans of $16.7 million, representing 0.22% of total loans at both September 30, 2023 and December 31, 2022. The allowance for credit losses to total loans stood at 1.31% at September 30, 2023 virtually unchanged from 1.33% at December 31, 2022. Net charge-offs were 0.02% of average loans for the third quarter of 2023 compared to 0.00% for the third quarter of 2022.

BancFirst Corporation CEO David Harlow commented, “The Company reported a solid quarter at $1.52 diluted earnings per share despite the impact of the first full quarter of reduced interchange fees under the Durbin Amendment. Continuing headwinds in the coming months include deposit pricing pressure and increased overhead required to meet the regulatory requirements for a holding company with assets exceeding $10 billion. Regardless, our talented bankers combined with the Company’s fortress balance sheet and top-tier liquidity position us to compete favorably in the markets that we serve.”

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 106 banking locations serving 59 communities across Oklahoma, Pegasus Bank, with 3 banking locations in the Dallas Metroplex area and Worthington Bank with 3 locations in the Fort Worth Metroplex area, 1 location in Arlington Texas and 1 location in Denton Texas. 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.

BancFirst Corporation
Summary Financial Information
(Dollars in thousands, except per share and share data - Unaudited)
	2023			2023			2023			2022			2022
	3rd Qtr			2nd Qtr			1st Qtr			4th Qtr			3rd Qtr
Condensed Income Statements:
Net interest income	$	104,308		$	105,926		$	109,156		$	110,352		$	100,947
Provision for credit losses		2,312			2,824			2,322			3,776			2,863
Noninterest income:
Trust revenue		4,866			4,590			4,222			4,065			4,125
Service charges on deposits		17,027			22,268			21,231			21,603			22,161
Securities transactions		(361	)		110			(213	)		1,116			966
Income from sales of loans		734			757			604			657			969
Insurance commissions		8,429			6,225			8,741			6,656			7,498
Cash management		8,177			7,927			6,734			6,124			5,624
Other		5,577			6,097			6,509			7,947			7,988
Total noninterest income		44,449			47,974			47,828			48,168			49,331
Noninterest expense:
Salaries and employee benefits		50,200			49,803			49,252			48,019			47,741
Occupancy expense, net		5,487			5,118			4,983			5,259			4,930
Depreciation		4,685			4,769			4,643			4,566			4,612
Amortization of intangible assets		885			880			880			880			880
Data processing services		1,820			2,217			2,107			1,928			1,876
Net expense from other real estate owned		2,720			2,889			2,459			6,235			2,392
Marketing and business promotion		2,034			1,900			2,527			2,465			1,945
Deposit insurance		1,419			1,463			1,613			1,209			1,202
Other		11,965			12,071			11,853			14,044			13,500
Total noninterest expense		81,215			81,110			80,317			84,605			79,078
Income before income taxes		65,230			69,966			74,345			70,139			68,337
Income tax expense		14,242			14,956			16,812			13,013			12,985
Net income	$	50,988		$	55,010		$	57,533		$	57,126		$	55,352
Per Common Share Data:
Net income-basic	$	1.55		$	1.67		$	1.75		$	1.74		$	1.69
Net income-diluted		1.52			1.64			1.72			1.70			1.65
Cash dividends declared		0.43			0.40			0.40			0.40			0.40
Common shares outstanding		32,921,393			32,939,256			32,899,493			32,875,560			32,856,387
Average common shares outstanding -
Basic		32,937,149			32,920,497			32,892,857			32,868,087			32,825,931
Diluted		33,539,389			33,467,254			33,462,379			33,503,937			33,536,558
Performance Ratios:
Return on average assets		1.68	%		1.85	%		1.90	%		1.82	%		1.75	%
Return on average stockholders’ equity		14.93			16.59			18.31			18.62			18.13
Net interest margin		3.73			3.87			3.89			3.83			3.48
Efficiency ratio		54.60			52.70			51.16			53.37			52.62
BancFirst Corporation
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Summary Financial Information
(Dollars in thousands, except per share and share data - Unaudited)
	Nine months ended
	September 30,
	2023			2022
Condensed Income Statements:
Net interest income	$	319,390		$	263,321
Provision for credit losses		7,458			6,300
Noninterest income:
Trust revenue		13,678			11,580
Service charges on deposits		60,526			65,154
Securities transactions		(464	)		(2,949	)
Income from sales of loans		2,095			3,891
Insurance commissions		23,395			20,227
Cash management		22,838			13,202
Other		18,183			24,474
Total noninterest income		140,251			135,579
Noninterest expense:
Salaries and employee benefits		149,255			136,957
Occupancy expense, net		15,588			14,067
Depreciation		14,097			14,034
Amortization of intangible assets		2,645			2,568
Data processing services		6,144			5,656
Net expense from other real estate owned		8,068			3,676
Marketing and business promotion		6,461			5,609
Deposit insurance		4,495			3,526
Other		35,889			39,214
Total noninterest expense		242,642			225,307
Income before income taxes		209,541			167,293
Income tax expense		46,010			31,319
Net income	$	163,531		$	135,974
Per Common Share Data:
Net income-basic	$	4.97		$	4.15
Net income-diluted		4.88			4.07
Cash dividends declared		1.23			1.12
Common shares outstanding		32,921,393			32,856,387
Average common shares outstanding -
Basic		32,916,996			32,748,116
Diluted		33,493,015			33,429,161
Performance Ratios:
Return on average assets		1.81	%		1.47	%
Return on average stockholders’ equity		16.56			15.24
Net interest margin		3.83			3.11
Efficiency ratio		52.79			56.48
BancFirst Corporation
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Summary Financial Information
(Dollars in thousands, except per share and share data - Unaudited)
			2023			2023			2022			2022
			2nd Qtr			1st Qtr			4th Qtr			3rd Qtr
Balance Sheet Data:
Total assets	12,114,602		$	12,020,265		$	12,332,105		$	12,387,863		$	12,452,378
Interest-bearing deposits with banks	2,134,081			2,188,004			2,623,565			2,909,861			3,106,279
Debt securities	1,525,448			1,570,620			1,618,233			1,540,604			1,521,645
Total loans	7,476,474			7,307,475			7,124,831			6,949,795			6,832,595
Allowance for credit losses	(97,776	)		(96,920	)		(94,760	)		(92,728	)		(89,871	)
Deposits	10,534,171			10,475,180			10,610,103			10,974,228			11,058,940
Stockholders' equity	1,370,584			1,340,791			1,310,882			1,250,836			1,195,149
Book value per common share	41.63			40.70			39.85			38.05			36.37
Tangible book value per common share (non-GAAP)(1)	35.56			34.62			33.73			31.90			30.20
Balance Sheet Ratios:
Average loans to deposits	70.61	%		69.85	%		64.54	%		62.25	%		59.62	%
Average earning assets to total assets	92.39			92.23			92.52			92.14			91.58
Average stockholders' equity to average assets	11.28			11.17			10.36			9.80			9.63
Asset Quality Data:
Past due loans	12,575		$	8,799		$	7,258		$	7,085		$	3,167
Nonaccrual loans (3)	16,676			18,047			17,649			15,299			11,962
Other real estate owned and repossessed assets	42,782			41,612			38,874			36,936			39,419
Nonaccrual loans to total loans	0.22	%		0.25	%		0.25	%		0.22	%		0.18	%
Allowance to total loans	1.31			1.33			1.33			1.33			1.32
Allowance to nonaccrual loans	586.34			537.05			536.93			606.10			751.32
Net charge-offs to average loans	0.02			0.01			0.00			0.01			0.00
Reconciliation of Tangible Book Value Per Common Share (non-GAAP)(2):
Stockholders' equity	1,370,584		$	1,340,791		$	1,310,882		$	1,250,836		$	1,195,149
Less goodwill	182,263			182,055			182,055			182,055			182,055
Less intangible assets, net	17,591			18,223			19,103			19,983			20,863
Tangible stockholders’ equity (non-GAAP)	1,170,730		$	1,140,513		$	1,109,724		$	1,048,798		$	992,231
Common shares outstanding	32,921,393			32,939,256			32,899,493			32,875,560			32,856,387
Tangible book value per common share (non-GAAP)	35.56		$	34.62		$	33.73		$	31.90		$	30.20
(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.
(3) Government Agencies guarantee approximately 5.7 million of nonaccrual loans at September 30, 2023.

All values are in US Dollars.

BancFirst Corporation
Consolidated Average Balance Sheets
And Interest Margin Analysis
Taxable Equivalent Basis
(Dollars in thousands - Unaudited)
	Three Months Ended								Nine Months Ended
	September 30, 2023								September 30, 2023
				Interest		Average						Interest		Average
	Average			Income/		Yield/			Average			Income/		Yield/
	Balance			Expense		Rate			Balance			Expense		Rate
ASSETS
Earning assets:
Loans	$	7,379,572		$	122,005		6.56	%	$	7,212,231		$	341,194		6.33	%
Debt securities – taxable		1,552,590			9,260		2.37			1,576,358			27,659		2.35
Debt securities – tax exempt		2,990		27		3.61				3,239		65			2.70
Interest bearing deposits with banks and FFS		2,162,655			29,052		5.33			2,362,174			87,879		4.97
Total earning assets		11,097,807			160,344		5.73			11,154,002			456,797		5.48
Nonearning assets:
Cash and due from banks		197,702								205,269
Interest receivable and other assets		813,824								810,025
Allowance for credit losses		(97,591	)							(95,614	)
Total nonearning assets		913,935								919,680
Total assets	$	12,011,742							$	12,073,682
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest bearing liabilities:
Transaction deposits	$	804,122		$	2,002		0.99	%	$	859,301		$	5,271	0.82		%
Savings deposits		4,646,598			46,292		3.95			4,510,005			114,450		3.39
Time deposits		816,779			6,544		3.18			756,962			14,026	2.48
Short-term borrowings		4,937			49		3.94			7,324			261		4.76
Subordinated debt		86,077			1,030	4.75				86,063			3,091		4.80
Total interest bearing liabilities		6,358,513			55,917		3.49			6,219,655			137,099	2.95
Interest free funds:
Noninterest bearing deposits		4,183,422								4,432,349
Interest payable and other liabilities		114,867								101,574
Stockholders’ equity		1,354,940								1,320,104
Total interest free funds		5,653,229								5,854,027
Total liabilities and stockholders’ equity	$	12,011,742							$	12,073,682
Net interest income				$	104,427							$	319,698
Net interest spread							2.24	%							2.53	%
Effect of interest free funds							1.49	%							1.30	%
Net interest margin							3.73	%						3.83		%