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): April 21, 2020

BANCFIRST CORPORATION

(Exact name of Registrant as Specified in Its Charter)

Oklahoma	0-14384	73-1221379
(State or Other Jurisdiction<br><br><br>of Incorporation)	(Commission File Number)	(IRS Employer<br><br><br>Identification No.)
101 North Broadway,<br><br><br>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<br><br><br>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 First Quarter Earnings

On April 21, 2020, BancFirst Corporation announced its results of operations for the quarter ended March 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 April 21, 2020, issued by BancFirst Corporation titled “BancFirst Corporation Reports First Quarter Earnings.”

104Cover 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<br><br><br>(Registrant)
Date: April 21, 2020	By:	/s/ Kevin Lawrence
		Kevin Lawrence
		Executive Vice President<br><br><br>Chief Financial Officer

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banf-ex991_6.htm

Exhibit 99.1

BANCFIRST CORPORATION REPORTS FIRST QUARTER EARNINGS

OKLAHOMA CITY, April 21, 2020 /PRNewswire/ -- BancFirst Corporation (NASDAQ GS:BANF) reported net income of $22.6 million, or $0.68 diluted earnings per share, for the first quarter of 2020 compared to net income of $31.8 million, or $0.96 diluted earnings per share, for the first quarter of 2019. The results for the first quarter of 2020 were negatively impacted primarily by a higher provision for loan losses. The first quarter of 2020 includes the net income of Pegasus Bank in Dallas, Texas, which was acquired on August 15, 2019.

The provision for loan losses for the first quarter of 2020 was $19.6 million compared to $1.7 million a year ago. BancFirst Corporation Executive Chairman David Rainbolt commented, “Even though it was optional, we have elected to go ahead and adopt CECL for our loan loss reserve methodology.  It is naïve to think that our region will not experience a residual economic effect from the combination of both the COVID-19 pandemic and low energy prices. The forward-looking view afforded by CECL lets us factor in our expectations about that future economy and its effect on loan losses. Our provision this quarter is based on a modestly optimistic assumption on the timing of an end to the pandemic, as well as the magnitude of the government’s stimulus response to it. To the extent the amount of time the economy remains shuttered is more extended than our current base projection, we will see a continuation of higher than normal provision in future periods.”

The Company’s net interest income for the first quarter of 2020 increased to $74.1 million compared to $66.9 million for the first quarter of 2019. The net interest margin for the quarter was 3.82% compared to 3.85% a year ago.  Net charge-offs for the quarter were less than 0.02% of average loans, compared to less than 0.01% of average loans for the first quarter of 2019.  Noninterest income for the quarter totaled $35.1 million, compared to $32.0 million last year. Noninterest expense for the quarter totaled $61.4 million compared to $56.2 million last year. The increase in noninterest expense was due to salary increases in 2020 and acquisition related expenses related to the purchase of assets from The Citizens State Bank of Okemah, Oklahoma, which were partially offset by a $2.2 million gain on a sale of property carried in other real estate owned. The Company’s effective tax rate was 20.0% compared to 22.4% for the first quarter of 2019.

At March 31, 2020, the Company’s total assets were $8.7 billion, an increase of $103.3 million from December 31, 2019. Debt securities of $592.0 million were up $100.4 million from December 31, 2019. Loans totaled $6.0 billion, an increase of $332.9 million from December 31, 2019. Deposits totaled $7.6 billion, an increase of $89.6 million from the December 31, 2019 total. The Company’s total stockholders’ equity was $1.0 billion, an increase of $18.4 million over December 31, 2019.

Nonaccrual loans represent 0.75% of total loans at March 31, 2020, up from 0.32% at year-end 2019. The increase in nonaccrual loans was primarily due to downgrades of a few energy loans. The allowance to total loans was 1.17% up from 0.96% at year-end 2019. The allowance to nonaccrual loans was 155.11% compared to 301.91% at year-end 2019.

BancFirst Corporation CEO David Harlow commented, “During the month of March and into April as the impact of COVID-19 on the overall economy became more evident, the Company acted on several fronts.  Specifically, we began the identification of all loan customers impacted by COVID-19 that resulted in a modification of loan terms and coded those loans in accordance with interagency guidelines. Importantly, we created a task force that has worked 24/7 to facilitate the Paycheck Protection Program through the Small Business Administration. Through that program that began on April 3 and ended on April 16 we approved 5,268 loans totaling approximately $829 million.

“Although strictly limiting lobby traffic and precisely following CDC guidance, we are fulfilling the duty of being designated as critical infrastructure by the Department of Homeland Security. Additionally, we have implemented an enhanced paid leave program for all employees, added incentive pay for all hourly employees in retail locations, and initiated a childcare stipend for hourly employees at work with school age children at home.”

On March 5, 2020, BancFirst Corporation purchased assets and assumed liabilities of The Citizens State Bank, Okemah, Oklahoma. The Company purchased $47.9 million in assets and $23.5 million in loans and assumed $47.9 million in deposits.

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 109 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.

.

BancFirst Corporation

Summary Financial Information

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

	2020			2019			2019			2019			2019
	1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			1st Qtr
Condensed Income Statements:
Net interest income	$	74,073		$	73,939		$	72,287		$	68,792		$	66,903
Provision for loan losses		19,583			1,412			2,758			2,433			1,684
Non-interest income:
Trust revenue		3,655			3,682			3,490			3,250			3,177
Service charges on deposits		18,804			19,938			19,866			19,114			17,663
Securities transactions		50			(9	)		—			821			—
Income from sales of loans		781			1,089			964			868			698
Insurance commissions		5,676			5,076			5,535			4,420			5,265
Cash management		4,320			4,258			4,430			4,402			3,776
Other		1,859			1,490			1,342			1,202			1,422
Total noninterest income		35,145			35,524			35,627			34,077			32,001
Non-interest expense:
Salaries and employee benefits		39,756			40,375			40,354			36,124			36,171
Occupancy expense, net		3,546			3,738			3,386			2,953			2,627
Depreciation		3,491			3,355			3,268			3,015			2,985
Amortization of intangible assets		964			1,007			842			758			759
Data processing services		1,692			1,634			1,467			1,262			1,480
Net expense from other real estate owned		(2,135	)		(424	)		26			97			(484	)
Marketing and business promotion		2,355			2,327			2,047			1,919			2,261
Deposit insurance		136			147			(81	)		544			533
Other		11,580			14,137			10,882			9,936			9,874
Total noninterest expense		61,385			66,296			62,191			56,608			56,206
Income before income taxes		28,250			41,755			42,965			43,828			41,014
Income tax expense		5,642			6,248			9,597			9,661			9,177
Net income	$	22,608		$	35,507		$	33,368		$	34,167		$	31,837
Per Common Share Data:
Net income-basic	$	0.69		$	1.09		$	1.02		$	1.04		$	0.98
Net income-diluted		0.68			1.07			1.00			1.02			0.96
Cash dividends declared		0.32			0.32			0.32			0.30			0.30
Common shares outstanding		32,646,691			32,694,268			32,644,018			32,639,588			32,617,788
Average common shares outstanding -
Basic		32,679,587			32,673,438			32,641,902			32,629,146			32,612,399
Diluted		33,287,359			33,366,848			33,327,213			33,317,193			33,292,852
Performance Ratios:
Return on average assets		1.07	%		1.66	%		1.65	%		1.78	%		1.69	%
Return on average stockholders’ equity		8.87			13.76			13.80			14.54			14.08
Net interest margin		3.82			3.78			3.89			3.89			3.85
Efficiency ratio		56.20			60.56			57.63			55.03			56.83

BancFirst Corporation

Summary Financial Information

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

	2020			2019			2019			2019			2019
	1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			1st Qtr
Balance Sheet Data:
Total assets	$	8,669,096		$	8,565,758		$	8,388,816		$	7,642,021		$	7,709,000
Interest-bearing deposits with banks		1,356,826			1,646,238			1,476,340			1,518,998			1,291,447
Debt securities		591,987			491,626			555,575			425,154			724,872
Total loans		6,006,065			5,673,144			5,622,897			5,105,302			5,050,221
Allowance for loan losses		(70,080	)		(54,238	)		(55,928	)		(55,108	)		(52,915	)
Deposits		7,573,200			7,483,635			7,330,677			6,613,613			6,706,386
Stockholders' equity		1,023,380			1,004,989			979,752			956,380			927,927
Book value per common share		31.35			30.74			30.01			29.30			28.45
Tangible book value per common share (non-GAAP)(1)		26.09			25.50			24.77			26.40			25.52
Balance Sheet Ratios:
Average loans to deposits		77.75	%		75.83	%		76.97	%		76.07	%		75.34	%
Average earning assets to total assets		91.51			91.50			92.23			92.43			92.42
Average stockholders' equity to average assets		12.02			12.04			11.96			12.25			12.01
Asset Quality Data:
Past due loans	$	10,065		$	11,834		$	11,215		$	2,663		$	2,170
Nonaccrual loans		45,181			17,965			19,995			17,998			21,594
Restructured loans		3,158			18,010			17,504			16,486			14,552
Total nonperforming and restructured loans		58,404			47,809			48,714			37,147			38,316
Other real estate owned and repossessed assets		6,001			6,073			7,055			7,004			6,433
Total nonperforming and restructured assets		64,405			53,882			55,769			44,151			44,749
Nonaccrual loans to total loans		0.75	%		0.32	%		0.36	%		0.35	%		0.43	%
Nonperforming and restructured loans to total loans		0.97			0.84			0.87			0.73			0.76
Nonperforming and restructured assets to total assets		0.74			0.63			0.66			0.58			0.58
Allowance to total loans		1.17			0.96			0.99			1.08			1.05
Allowance to nonaccrual loans		155.11			301.91			279.72			306.20			245.05
Allowance to nonperforming and restructured loans		119.99			113.45			114.81			148.35			138.10
Net charge-offs to average loans		0.02			0.06			0.04			0.01			—
Reconciliation of Tangible Book Value Per Common Share (non-GAAP)(2):
Stockholders' equity	$	1,023,380		$	1,004,989		$	979,752		$	956,380		$	927,927
Less goodwill		149,923			148,604			147,013			79,749			79,749
Less intangible assets, net		21,850			22,608			24,025			14,936			15,701
Tangible stockholders’ equity (non-GAAP)	$	851,607		$	833,777		$	808,714		$	861,695		$	832,477
Common shares outstanding		32,646,691			32,694,268			32,644,018			32,639,588			32,617,788
Tangible book value per common share (non-GAAP)	$	26.09		$	25.50		$	24.77		$	26.40		$	25.52
(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.

BancFirst Corporation

Consolidated Average Balance Sheets

And Interest Margin Analysis

Taxable Equivalent Basis

(Dollars in thousands - Unaudited)

	Three Months Ended
	March 31, 2020
				Interest		Average
	Average			Income/		Yield/
	Balance			Expense		Rate
ASSETS
Earning assets:
Loans	$	5,770,502		$	76,658		5.33	%
Securities – taxable		506,893			2,577		2.04
Securities – tax exempt		17,474			136		3.12
Federal funds sold and interest-bearing deposits with banks		1,493,771			4,769		1.28
Total earning assets		7,788,640			84,140		4.33
Nonearning assets:
Cash and due from banks		191,682
Interest receivable and other assets		582,200
Allowance for loan losses		(51,515	)
Total nonearning assets		722,367
Total assets	$	8,511,007
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing liabilities:
Transaction deposits	$	815,827		$	515		0.25	%
Savings deposits		3,020,093			6,249		0.83
Time deposits		697,821			2,636		1.51
Short-term borrowings		2,448			7		1.18
Junior subordinated debentures		26,804			491		7.35
Total interest-bearing liabilities		4,562,993			9,898		0.87
Interest-free funds:
Noninterest-bearing deposits		2,888,342
Interest payable and other liabilities		36,879
Stockholders’ equity		1,022,793
Total interest free funds		3,948,014
Total liabilities and stockholders’ equity	$	8,511,007
Net interest income				$	74,242
Net interest spread							3.46	%
Effect of interest free funds							0.36	%
Net interest margin							3.82	%

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