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8-K

Bancfirst Corp /Ok/ (BANF)

8-K 2022-10-20 For: 2022-10-20
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Added on April 11, 2026

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 20, 2022

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 20, 2022, BancFirst Corporation announced its results of operations for the quarter ended September 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 October 20, 2022, 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 20, 2022 By: /s/ Kevin Lawrence
Kevin Lawrence<br>Executive Vice President<br>Chief Financial Officer

EX-99.1

Exhibit 99.1

img44656334_0.jpg

100 N. Broadway Ave

Oklahoma City, OK 73102

www.bancfirst.bank

FOR IMMEDIATE RELEASE

Thursday, October 20, 2022

BANCFIRST CORPORATION REPORTS THIRD QUARTER EARNINGS

BancFirst Corporation (NASDAQ GS:BANF) reported net income of $55.4 million, or $1.65 diluted earnings per share, for the third quarter of 2022 compared to net income of $38.8 million, or $1.16 diluted earnings per share, for the third quarter of 2021. Net income for the nine months ended September 30, 2022 was $136.0 million, or $4.07 per share, compared to $129.5 million, or $3.88 per share, for the nine months ended September 30, 2021.

The Company’s net interest income for the third quarter of 2022 increased to $100.9 million from $80.2 million for the quarter ended September 30, 2021. Rising short-term interest rates and loan growth contributed to the increase. The net interest margin for the quarter was 3.48% compared to 3.09% a year ago. The margin for the third quarter of 2021 included $10.0 million in PPP fees.

For the third quarter of 2022, the Company recorded a provision for credit losses of $2.9 million compared to $1.5 million for the quarter ended September 30, 2021. The Company remains neutral on the likelihood of a significant economic downturn in Oklahoma and Texas and therefore will maintain current CECL reserves in the near term.

Noninterest income for the quarter totaled $49.3 million up from $39.8 million last year. The increase in noninterest income in 2022 was mostly attributable to $3.4 million in sweep fees and $3.2 million of income from an equity interest received through restructuring a loan. Total noninterest expense for the current quarter was $79.1 million up from $70.2 million for the third quarter last year, primarily due to the Worthington acquisition and salary increases.

The Company’s effective tax rate was 19.0% compared to 19.7% for the third quarter of 2021.

At September 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 $3.0 billion from December 31, 2021. The balance sheet growth was driven by the return of customer deposits from off-balance sheet sweep accounts and the acquisition of Worthington National Bank. Loans totaled $6.8 billion compared to $6.2 billion at December 31, 2021. Loan growth during 2022, net of acquired loans and PPP loan runoffs, was $461 million, or 7%. Stockholders’ equity was $1.2 billion, an increase of $23.4 million over December 31, 2021.

Asset quality remained strong as nonaccrual loans continued to decline, totaling $12.0 million, representing 0.18% of total loans at September 30, 2022, down from 0.34% at year-end 2021. The allowance for credit losses to total loans was 1.32% at September 30, 2022, down slightly from 1.36% at the end of 2021.

BancFirst Corporation CEO David Harlow commented, “The Company reported a strong quarter at $1.65/share fueled by both margin expansion as a result of continued fed tightening and solid loan growth. Non-Interest income expanded across most all major categories led by the return of sweep fees as interest rates have increased. Asset quality remained superior with YTD net charge offs of 1 bps. We are maintaining an allowance for credit losses consistent with our current view of the anticipated economic slowdown in our region of the country.”

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.

BancFirst Corporation

Summary Financial Information

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

2022 2022 2022 2021 2021
3rd Qtr 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr
Condensed Income Statements:
Net interest income $ 100,947 $ 86,867 $ 75,507 $ 75,898 $ 80,190
Provision for (benefit from) credit losses 2,863 501 2,936 (224 ) 1,483
Non-interest income:
Trust revenue 4,125 3,949 3,506 3,336 3,210
Service charges on deposits 22,161 21,618 21,375 22,095 21,706
Securities transactions 966 - (3,915 ) 630 150
Income from sales of loans 969 1,256 1,666 1,545 1,594
Insurance commissions 7,498 5,302 7,427 6,075 6,666
Cash management 5,624 4,447 3,131 3,115 3,127
Other 7,988 6,026 10,460 8,897 3,333
Total noninterest income 49,331 42,598 43,650 45,693 39,786
Non-interest expense:
Salaries and employee benefits 47,741 45,284 43,932 42,887 42,267
Occupancy expense, net 4,930 4,734 4,403 4,521 5,086
Depreciation 4,612 4,647 4,775 4,708 4,207
Amortization of intangible assets 880 857 831 759 755
Data processing services 1,876 1,975 1,805 1,663 1,734
Net (income) expense from other real estate owned 2,392 (510 ) 1,794 2,412 1,810
Marketing and business promotion 1,945 1,591 2,073 2,080 1,796
Deposit insurance 1,202 1,196 1,128 968 846
Other 13,500 13,943 11,771 16,783 11,713
Total noninterest expense 79,078 73,717 72,512 76,781 70,214
Income before income taxes 68,337 55,247 43,709 45,034 48,279
Income tax expense 12,985 10,540 7,794 6,866 9,529
Net income $ 55,352 $ 44,707 $ 35,915 $ 38,168 $ 38,750
Per Common Share Data:
Net income-basic $ 1.69 $ 1.36 $ 1.10 $ 1.17 $ 1.18
Net income-diluted 1.65 1.34 1.08 1.15 1.16
Cash dividends declared 0.40 0.36 0.36 0.36 0.36
Common shares outstanding 32,856,387 32,781,198 32,725,587 32,603,118 32,572,217
Average common shares outstanding -
Basic 32,825,931 32,749,752 32,666,916 32,585,784 32,744,104
Diluted 33,536,558 33,418,482 33,315,333 33,180,680 33,267,955
Performance Ratios:
Return on average assets 1.75 % 1.42 % 1.22 % 1.33 % 1.37 %
Return on average stockholders’ equity 18.13 15.14 12.33 13.02 13.42
Net interest margin 3.48 3.05 2.78 2.87 3.09
Efficiency ratio 52.62 56.94 60.85 63.15 58.52
BancFirst Corporation
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Summary Financial Information
(Dollars in thousands, except per share and share data - Unaudited)
Nine months ended
September 30,
2022 2021
Condensed Income Statements:
Net interest income $ 263,321 $ 239,759
Provision for (benefit from) credit losses 6,300 (8,466 )
Non-interest income:
Trust revenue 11,580 9,576
Service charges on deposits 65,154 61,330
Securities transactions (2,949 ) 417
Income from sales of loans 3,891 5,737
Insurance commissions 20,227 17,670
Cash management 13,202 9,198
Other 24,474 20,411
Total noninterest income 135,579 124,339
Non-interest expense:
Salaries and employee benefits 136,957 123,836
Occupancy expense, net 14,067 13,962
Depreciation 14,034 12,217
Amortization of intangible assets 2,568 2,357
Data processing services 5,656 5,072
Net expense from other real estate owned 3,676 6,677
Marketing and business promotion 5,609 5,323
Deposit insurance 3,526 2,488
Other 39,214 37,268
Total noninterest expense 225,307 209,200
Income before income taxes 167,293 163,364
Income tax expense 31,319 33,902
Net income $ 135,974 $ 129,462
Per Common Share Data:
Net income-basic $ 4.15 $ 3.95
Net income-diluted 4.07 3.88
Cash dividends declared 1.12 1.04
Common shares outstanding 32,856,387 32,572,217
Average common shares outstanding -
Basic 32,748,116 32,760,015
Diluted 33,429,161 33,358,837
Performance Ratios:
Return on average assets 1.47 % 1.61 %
Return on average stockholders’ equity 15.24 15.54
Net interest margin 3.11 3.25
Efficiency ratio 56.48 57.46
BancFirst Corporation
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Summary Financial Information
(Dollars in thousands, except per share and share data - Unaudited)
2022 2022 2022 2021 2021
3rd Qtr 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr
Balance Sheet Data:
Total assets $ 12,452,378 $ 12,530,073 $ 12,624,431 $ 9,405,612 $ 11,302,771
Interest-bearing deposits with banks 3,106,279 3,590,311 3,816,532 1,821,203 3,836,809
Debt securities 1,521,645 1,205,894 1,211,668 534,500 529,484
Total loans 6,832,595 6,620,643 6,504,477 6,194,218 6,037,886
Allowance for credit losses (89,871 ) (86,935 ) (87,239 ) (83,936 ) (86,463 )
Deposits 11,058,940 11,142,688 11,250,971 8,091,914 9,992,044
Stockholders' equity 1,195,149 1,185,695 1,167,802 1,171,734 1,146,874
Book value per common share 36.37 36.17 35.68 35.94 35.21
Tangible book value per common share (non-GAAP)(1) 30.20 29.90 29.51 30.80 30.04
Balance Sheet Ratios:
Average loans to deposits 59.62 % 58.66 % 59.72 % 60.16 % 61.56 %
Average earning assets to total assets 91.58 90.89 91.92 92.13 92.13
Average stockholders' equity to average assets 9.63 9.40 9.86 10.19 10.22
Asset Quality Data:
Past due loans $ 3,167 $ 4,771 $ 6,360 $ 4,964 $ 5,186
Nonaccrual loans (5) 11,962 13,712 17,453 20,892 26,607
Restructured loans 2,249 2,174 2,345 3,665 7,073
Total nonperforming and restructured loans 17,378 20,657 26,158 29,521 38,866
Other real estate owned and repossessed assets 39,419 39,209 39,729 39,553 39,060
Total nonperforming and restructured assets 56,797 59,866 65,887 69,074 77,926
Nonaccrual loans to total loans 0.18 % 0.21 % 0.27 % 0.34 % 0.44 %
Nonaccrual loans to total Non-PPP loans (non-GAAP)(3) 0.18 0.21 0.27 0.34 0.46
Nonperforming and restructured loans to total loans 0.25 0.31 0.40 0.48 0.64
Nonperforming and restructured loans to total Non-PPP loans (non-GAAP)(3) 0.25 0.31 0.40 0.48 0.67
Nonperforming and restructured assets to total assets 0.46 0.48 0.52 0.73 0.69
Allowance to total loans 1.32 1.31 1.34 1.36 1.43
Allowance to total Non-PPP loans (non-GAAP)(3) 1.32 1.31 1.35 1.37 1.48
Allowance to nonaccrual loans 751.32 634.01 499.83 401.76 324.96
Allowance to nonperforming and restructured loans 517.17 420.84 333.51 284.33 222.46
Net charge-offs to average loans 0.00 0.01 0.00 0.03 0.01
Reconciliation of Tangible Book Value Per Common Share (non-GAAP)(2):
Stockholders' equity $ 1,195,149 $ 1,185,695 $ 1,167,802 $ 1,171,734 $ 1,146,874
Less goodwill 182,055 183,639 176,563 149,922 149,922
Less intangible assets, net 20,863 21,743 25,456 17,566 18,325
Tangible stockholders’ equity (non-GAAP) $ 992,231 $ 980,313 $ 965,783 $ 1,004,246 $ 978,627
Common shares outstanding 32,856,387 32,781,198 32,725,587 32,603,118 32,572,217
Tangible book value per common share (non-GAAP) $ 30.20 $ 29.90 $ 29.51 $ 30.80 $ 30.04
(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 $ 6,832,595 $ 6,620,643 $ 6,504,477 $ 6,194,218 $ 6,037,886
Less PPP loans 1,140 3,206 30,605 80,412 201,208
Total Non-PPP loans (non-GAAP) $ 6,831,455 $ 6,617,437 $ 6,473,872 $ 6,113,806 $ 5,836,678
Nonaccrual loans (5) 11,962 13,712 17,453 20,892 26,607
Nonaccrual loans to total Non-PPP loans (non-GAAP) 0.18 % 0.21 % 0.27 % 0.34 % 0.46 %
Total nonperforming and restructured loans 17,378 20,657 26,158 29,521 38,866
Nonperforming and restructured loans to total Non-PPP loans (non-GAAP) % 0.31 % 0.40 % 0.48 % 0.67 %
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Allowance for credit losses ) (86,935 ) (87,239 ) (83,936 ) (86,463 )
Allowance to total Non-PPP loans (non-GAAP) % 1.31 % 1.35 % 1.37 % 1.48 %
(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 2.0 million of nonaccrual loans at September 30, 2022.

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, 2022 September 30, 2022
Interest Average Interest Average
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate
ASSETS
Earning assets:
Loans $ 6,652,613 $ 87,169 5.20 % $ 6,527,355 $ 239,072 4.90 %
Debt securities – taxable 1,353,950 6,793 1.99 1,218,092 15,716 1.73
Debt securities – tax exempt 3,539 28 3.09 3,993 89 2.99
Interest bearing deposits with banks and FFS 3,512,242 20,119 2.27 3,582,533 29,482 1.10
Total earning assets 11,522,344 114,109 3.93 11,331,973 284,359 3.35
Nonearning assets:
Cash and due from banks 252,874 271,060
Interest receivable and other assets 892,858 874,379
Allowance for credit losses (86,955 ) (86,545 )
Total nonearning assets 1,058,777 1,058,894
Total assets $ 12,581,121 $ 12,390,867
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest bearing liabilities:
Transaction deposits $ 958,008 $ 442 0.18 % $ 959,261 $ 846 0.12 %
Savings deposits 4,313,076 10,447 0.96 4,271,070 14,320 0.45
Time deposits 678,549 1,110 0.65 666,190 2,400 0.48
Short-term borrowings 6,979 36 2.05 5,401 49 1.21
Subordinated debt 86,020 1,030 4.75 86,006 3,091 4.81
Total interest bearing liabilities 6,042,632 13,065 0.86 5,987,928 20,706 0.46
Interest free funds:
Noninterest bearing deposits 5,208,591 5,106,094
Interest payable and other liabilities 118,375 104,299
Stockholders’ equity 1,211,523 1,192,546
Total interest free funds 6,538,489 6,402,939
Total liabilities and stockholders’ equity $ 12,581,121 $ 12,390,867
Net interest income $ 101,044 $ 263,653
Net interest spread 3.07 % 2.89 %
Effect of interest free funds 0.41 % 0.22 %
Net interest margin 3.48 % 3.11 %

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