UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

SCHEDULE 14A

Proxy Statement Pursuant to Section 14(a) of the

Securities Exchange Act of 1934

(Amendment No.      )

 

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Preliminary Proxy Statement

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Soliciting Material Pursuant to §240.14a-12

BancFirst Corporation

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BancFirst Corporation

101 North Broadway

Oklahoma City, Oklahoma 73102

NOTICE OF SPECIALANNUAL MEETING OF SHAREHOLDERS

 

DATE

December 3, 2020.May 27, 2021.

 

 

 

TIME

9:00 a.m., local time.

 

 

 

PLACE

Due to concerns regarding the coronavirus outbreakpandemic and to assist in protecting the health and well-being of our shareholders and other participants, the meeting will be held virtually via conference call, with no physical in-person meeting. The meeting can be accessed by the following dial in numbersnumber along with the accompanying access code. Dial in numbers:number: 1-408-418-9388. Access code: 146 392 2746187 688 7792

 

 

 

ITEMS OF BUSINESS

1.   

To elect the 20 directors nominated by our board of directors and named in the accompanying proxy statement;

2.

To amend and restate the BancFirst Corporation Stock Option Plan.Plan to increase the number of shares of common stock authorized to be granted subsequent to such amendment to 300,000 shares;

3.  

To amend the BancFirst Corporation Non-Employee Directors’ Stock Option Plan to increase the number of shares of common stock authorized to be granted subsequent to such amendment to 50,000 shares;

4.

To amend the BancFirst Corporation Directors’ Deferred Stock Compensation Plan to increase the number of shares of common stock authorized to be granted subsequent to such amendment to 40,000 shares;

5.  

To ratify the appointment of BKD, LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2021; and

6.  

To transact such other business as may properly come before the meeting or any adjournments or postponements thereof.

 

 

 

RECORD DATE

In order to vote, you must have been a shareholder at the close of business on October 30, 2020.April 5, 2021.

 

 

 

PROXY VOTING

Whether or not you attend the meeting via conference call, it is important that your shares be represented and voted. Please vote your shares electronically through the Internet or by telephone or by completing, signing and dating your proxy card and returning it as soon as possible in the enclosed, postage−paid envelope. This proxy is revocable. You can revoke this proxy at any time prior to its exercise at the meeting by following the instructions in the proxy statement. Voting on the Internet or by telephone will eliminate the need to return a paper proxy card.

 

 

 

 

By Order of the Board of Directors:

 

 

 

 

Randy Foraker

Secretary

 

Oklahoma City, Oklahoma

November April 7, 2021

2 2020

PLEASE SIGN AND DATE THE ENCLOSED PROXY AND MAIL IT PROMPTLY IN THE ENCLOSED RETURN ENVELOPE.


BANCFIRST CORPORATION

2020 SPECIAL2021 ANNUAL MEETING

PROXY STATEMENT

TABLE OF CONTENTS

 

 

Page

About the SpecialAnnual Meeting

1

How Do I Vote?

34

MatterMatters to be Voted On

45

Shareholder Communications WithProposal 1:  Election of 20 Directors

5

Proposal 2: Amendment of the BoardBancFirst Corporation Stock Option Plan

6

Proposal 3: Amendment of the BancFirst Corporation Non-Employee Directors’ Stock OwnershipOption Plan

8

Proposal 4: Amendment of the BancFirst Corporation Directors’ Deferred Stock Compensation Plan

79

Proposal 5: Ratification of Selection of Independent Registered Public Accounting Firm

11

Corporate Governance

11

Director Independence

11

Board Refreshment and Assessment

12

Directors of BancFirst Corporation

14

Board Structure and Committee Composition

18

Board Leadership Structure and Risk Oversight

18

Executive Committee

19

Audit Committee

19

Compensation Committee

19

Independent Directors’ Committee

19

Board Issues Committee

20

Sustainability Committee

20

Senior Loan Committee of BancFirst

20

Asset/Liability Committee of BancFirst

20

Administrative Committee of BancFirst

20

Anti-Hedging Policy

20

Corporate Code of Conduct

21

Shareholder Communications with the Board

21

Compensation Committee Report

21

Compensation Committee Interlocks and Insider Participation

22

Audit Committee Report

22

Transactions with Related Persons

23

Management

24

Executive Compensation

24

Compensation Discussion and Analysis

24

Objectives of our Compensation Program

25

Executive Participation in Committee Discussions

25

Executive Compensation Program

26

Base Salary

26

Annual Performance-Based Incentive Pay

26

Long-Term Awards

29

Benefits Available to All Employees

30

Perquisites

30

Employment Arrangements

30

Deductibility of Named Executive Officers Compensation

30

Summary Compensation Table

31

Grants of Plan-Based Awards

32

Outstanding Equity Awards at Fiscal Year-End

32

Option Exercises

32

Equity Compensation Plan Information

33

Supplemental Retirement Benefits

33

Potential Payments upon Termination or Change-in-Control

33

Pay Ratio Disclosure

33

Director Compensation

34

Stock Ownership

36

Certain Beneficial Owners

36

Directors and Management

37

Delinquent 16(a) Reports

38

Proposals for the 2022 Annual Meeting of Shareholders

38

Other Matters

38

Appendix A: BancFirst Corporation Amended and RestatedResolution to Amend the Stock Option Plan

A-1

Appendix B: BancFirst Corporation Resolution to Amend the Non-Employee Directors’ Stock Option Plan

B-1

Appendix C: BancFirst Corporation Resolution to Amend the Directors’ Deferred Stock Compensation Plan

C-1

 

3

 


BancFirst Corporation

101 North Broadway

Oklahoma City, Oklahoma 73102

 

PROXY STATEMENT

 

We are providing these proxy materials in connection with the solicitation by the Board of Directors of BancFirst Corporation of proxies to be used at a 2020 Specialour 2021 Annual Meeting of Shareholders (the “Special“Annual Meeting”).  In this proxy statement, we refer to the Board of Directors as the “Board,,” to BancFirst Corporation as “we,” “us,” “our” or the “Company,,” and to our wholly-owned subsidiaries, BancFirst, as “BancFirst“BancFirst” and Pegasus Bank as “Pegasus.” This proxy statement, and the accompanying proxy card or voter instruction card and our 2020 Annual Report on Form 10−K were first mailed to shareholders on or about November 5, 2020.April 14, 2021.  This proxy statement contains important information for you to consider when deciding how to vote on the mattermatters brought before the SpecialAnnual Meeting.  Please read it carefully.

ABOUT THE SPECIALANNUAL MEETING

What mattermatters will be voted on at the SpecialAnnual Meeting?

You will be voting on a proposal toon:

Proposal 1: To elect the 20 directors nominated by our Board and named in this proxy statement;

Proposal 2: To amend and to restate the BancFirst Corporation Stock Option Plan.Plan;

Proposal 3: To amend the BancFirst Corporation Non-Employee Directors’ Stock Option Plan;

Proposal 4: To amend the BancFirst Corporation Directors’ Deferred Stock Compensation Plan;

Proposal 5: To ratify the selection of BKD, LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2021; and

Such other business as may properly come before the meeting or any adjournments or postponements thereof.

What are the Board’s recommendations?

The Board recommends a vote vote:

for the amendmentelection of the 20 directors nominated by our Board and restatementnamed in this proxy statement;

for the amendment of the BancFirst Corporation Stock Option Plan.Plan;

for the amendment of the BancFirst Corporation Non-Employee Directors’ Stock Option Plan;

for the amendment of the BancFirst Corporation Directors’ Deferred Stock Compensation Plan; and

for the ratification of the selection of BKD, LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2021.

Who is entitled to vote at the SpecialAnnual Meeting?

The Board set October 30, 2020,April 5, 2021 as the record date for the SpecialAnnual Meeting (the “record date”).  You are entitled to vote if you were a shareholder of record of our common stock as of the close of business on October 30, 2020.April 5, 2021.  Your shares can be voted at the SpecialAnnual Meeting only if you are attending via conference call or represented by a valid proxy.

How many votes do I have?

You will have one (1) vote for each share of our common stock you owned at the close of business on the record date, provided those shares are either held directly in your name as the shareholder of record or were held for you as the beneficial owner through a broker, bank or other nominee. There are no voting restrictions on our common stock.

1


What is the difference between holding shares as a shareholder of record and beneficial owner?

Most of our shareholders hold their shares through a broker, bank or other nominee rather than directly in their own name. As summarized below, there are some distinctions between shares held of record and those owned beneficially.

Shareholder of Record. If your shares are registered directly in your name with our transfer agent, BancFirst Trust and Investment Management, you are considered the shareholder of record with respect to those shares, and these proxy materials are being sent directly to you by the Company.  As the shareholder of record, you have the right to grant your voting proxy directly to us or to vote during the conference call at the SpecialAnnual Meeting.  If you wish to grant a proxy, we have enclosed a proxy card for you to use.

Beneficial Owner. If your shares are held in a stock brokerage account or by a bank or other nominee, you are considered the beneficial owner of shares held in “street name,” and these proxy materials are being forwarded to you by your broker, bank or nominee, who is considered the shareholder of record with respect to those shares. As the beneficial owner, you have the right to direct your broker, bank or nominee on how to vote and are also invited to attend the SpecialAnnual Meeting.  However, since you are not the shareholder of record, you may not vote these shares during the conference call at the SpecialAnnual Meeting, unless you request, complete and deliver a proxy from your broker, bank or nominee. Your broker, bank or nominee has enclosed a voting instruction card for you to use in directing the broker, bank or nominee how to vote your shares.

What will happen if I do not vote my shares?

Shareholders of Record. If you are the shareholder of record of your shares and you do not vote by proxy card or during the conference call for the SpecialAnnual Meeting, your shares will not be voted at the SpecialAnnual Meeting.

1


Beneficial Owners. If you are the beneficial owner of your shares, your broker or nominee may vote your shares only on those proposals on which it has discretion to vote. If no voting instructions are provided, these record holders can vote your shares only on discretionary, or routine, matters and not on non-discretionary, or non-routine, matters. Uninstructed shares whose votes cannot be counted on non-routine matters result in what are commonly referred to as “broker non-votes.”

The election of directors (Proposal No. 1), the proposal to amend and restate the BancFirst Corporation Stock Option Plan is(Proposal No. 2), the proposal to amend the BancFirst Corporation Non-Employee Directors’ Stock Option Plan (Proposal No. 3) and the proposal to amend the BancFirst Corporation Directors’ Deferred Stock Compensation Plan (Proposal No. 4) are considered a non-routine mattermatters under the rules and regulations promulgated by NASDAQ and approved by the Securities and Exchange Commission (“SEC”). Consequently, brokers may not vote uninstructed shares on these proposals. The ratification of BKD, LLP as our independent registered public accounting firm for the fiscal year ended December 31, 2021 (Proposal No. 5) is considered a routine matter under the rules and regulations promulgated by NASDAQ and approved by the SEC. Consequently, brokers may vote uninstructed shares on this proposal, and we do not expect any broker non-votes on this proposal.

 

Abstentions and broker non-votes are counted as shares that are present for purposes of determining whether a quorum is present at the SpecialAnnual Meeting. However, for purposes of determining whether a proposal is approved, abstentions and broker non-votes are tabulated separately. The effect of abstentions and broker non-votes depends on the vote required for a particular proposal. See “What vote is required to approve each proposal,” below, for a description of the effect of abstentions and broker non-votes on such proposal.

If you do not give your broker voting instructions, your broker will notonly be entitled to vote your shares.shares on Proposal 5.  We urge you to provide instructions to your broker, bank or other nominee so that your votes may be counted on all of these important matters.

How many votes can be cast by all shareholders?

Each share of BancFirst Corporation common stock is entitled to one (1) vote.  There is no cumulative voting.  We had 32,682,26932,771,013 shares of common stock outstanding and entitled to vote on the record date.

How many votes must be present to hold the SpecialAnnual Meeting?

A majority of our outstanding shares of common stock as of the record date must be present at the SpecialAnnual Meeting in order to hold the SpecialAnnual Meeting and conduct business. This is called a “quorum.” Shares that are present and entitled to vote on one or more of the mattermatters to be voted upon at the SpecialAnnual Meeting are counted as present for establishing a quorum.  Both abstentions and broker non-votesnon-

2


votes are counted as present for the purpose of determining the presence of a quorum.  If a quorum is not present, we expect that the SpecialAnnual Meeting will be adjourned until we obtain a quorum.

What vote is required to approve each proposal?

Proposal 1: Election of 20 Directors

The election of directors requires the proposal?affirmative vote of the holders of at least a majority of the common stock issued and outstanding and entitled to vote. Each director nominee who receives at least a majority of the common stock outstanding will be elected as a director for the ensuing one year. Withheld votes will have the same effect as votes “against” this proposal, and broker non-votes will have no effect on the vote for this proposal.

Proposal 2:  Amendment of the BancFirst Corporation Stock Option Plan

This proposal requires the affirmative vote of the holders of at least a majority of the common stock issued and outstanding and entitled to vote. Abstention will have the same effect as a vote “against” this proposal, and broker non-votes will have no effect on the vote for this proposal.

Proposal 3:  Amendment of the BancFirst Corporation Non-Employee Directors’ Stock Option Plan

This proposal requires the affirmative vote of the holders of at least a majority of the common stock issued and outstanding and entitled to vote. Abstention will have the same effect as a vote “against” this proposal, and broker non-votes will have no effect on the vote for this proposal.

Proposal 4:  Amendment of the BancFirst Corporation Directors’ Deferred Stock Compensation Plan

This proposal requires the affirmative vote of the holders of at least a majority of the common stock issued and outstanding and entitled to vote. Abstention will have the same effect as a vote “against” this proposal, and broker non-votes will have no effect on the vote for this proposal.

Proposal 5: Ratification of the selection of BKD, LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2021

This proposal requires the affirmative vote of the holders of at least a majority of the common stock issued and outstanding and entitled to vote.  Abstention will have the same effect as a vote “against” this proposal.

Can I change or revoke my vote after I return my proxy card or voting instruction card?

Yes.  Even if you sign the proxy card or voting instruction card in the form accompanying this proxy statement, you retain the power to revoke your proxy or change your vote. You can revoke your proxy at any time before it is exercised by mailing written notice specifying such revocation to the Secretary of the Company at least five business days before the SpecialAnnual Meeting.  You may change your vote by mailing a valid, later-dated proxy to the secretary of the Company at least five business days before the SpecialAnnual meeting, or by voting at the SpecialAnnual Meeting. However, please note that if you would like to vote at the SpecialAnnual Meeting and you are not the shareholder of record, you must request, complete and deliver a proxy from your broker, bank or nominee.

What does it mean if I receive more than one proxy or voting instruction card?

It generally means your shares are registered differently or are in more than one account.  Please provide voting instructions for all proxy and voting instruction cards you receive.

Who can attend the SpecialAnnual Meeting?

All shareholders as of the record date, or their duly appointed proxies, may attend. The meeting will be held via conference call.

Who pays for the proxy solicitation and how will the Company solicit votes?

We will bear the expense of printing and mailing proxy materials. In addition to this solicitation of proxies by mail, our directors, officers and other employees may solicit proxies by personal interview, telephone, facsimile or email. They will not be paid any additional compensation for such solicitation. We will request brokers, banks and nominees who hold shares of our common stock in their names

3


to furnish proxy materials to beneficial owners of the shares. We will reimburse such brokers, banks and nominees for their reasonable expenses incurred in forwarding solicitation materials to such beneficial owners.

2


How can I access the Company’s proxy materials and annual report electronically?

The proxy statement isand our 2020 Annual Report on Form 10−K are available on the BancFirstat our proxy materials website at http://www.BancFirst.bank www.proxydocs.com/BANFand the. This website of the SEC at http://www.sec.gov. The Company provides documents on its website and provides linksdoes not use any features that identify you as a visitor to the SEC’s website where reports can be obtained.website. The Company’s annual reportAnnual Report on Form 10-K for the year ended December 31, 20192020 (other than the exhibits thereto), as well as copies of other filings or exhibits to filings made with the SEC, are also available without charge upon written request. Such requests should be directed to: Randy Foraker, Executive Vice President and Secretary, BancFirst Corporation, 101 North Broadway, Oklahoma City, Oklahoma 73102.  

Is a list of shareholders available?

The names of shareholders of record entitled to vote at the SpecialAnnual Meeting will be available to shareholders entitled to vote at this meeting for ten days prior to the meeting for any purpose relevant to the meeting. This list can be viewed between the hours of 9:00 a.m. and 5:00 p.m., local time, at our principal executive offices at 101 N. Broadway, Oklahoma City, Oklahoma.  Please contact Randy Foraker, Executive Vice President and Secretary, BancFirst Corporation, 101 North Broadway, Oklahoma City, Oklahoma 73102, to make arrangements.

How do I find out the voting results?

Preliminary voting results will be announced at the SpecialAnnual Meeting, and final voting results will be published within four business days of the specialannual meeting on Form 8-K, which we will file with the SEC. After the Form 8-K is filed, you may obtain a copy by visiting our website at www.bancfirst.bank, which provides links to the SEC’s website.  You may also obtain a copy by visiting the SEC’s website directly or by contacting Randy Foraker, Executive Vice President and Secretary, by calling (405) 270-1044, by writing to Mr. Foraker c/o BancFirst Corporation, 101 N. Broadway, Oklahoma City, Oklahoma 73102, or by sending an email to him at randy.foraker@bancfirst.bank.73102.

What if I have questions about lost stock certificates or I need to change my mailing address?

Shareholders of record may contact our transfer agent, BancFirst Trust and Investment Management,, by calling (405) 270-4797 or writing to BancFirst Trust and Investment Management, P.O. Box 26883, Oklahoma City, Oklahoma 73126, to get more information about these matters.

HOW DO I VOTE?

Your vote is important.important  

You mayhave the option to vote and submit your proxy over the Internet. If you have Internet access, we encourage you to record your vote over the Internet at www.proxypush.com/BANF. We believe it will be convenient for you, and it saves postage and processing costs. In addition, when you vote over the Internet, your vote is recorded immediately, and there is no risk that postal delays will cause your vote to arrive late and therefore not be counted. If you do not vote over the Internet, please vote by telephone or by completing and returning the enclosed proxy card in the postage-paid envelope provided. Submitting your proxy over the Internet, by telephone, or by mail orwill not affect your right to vote in person if you decide to attend the Special Meeting and vote by ballot, all as described below.Annual Meeting.

Vote by Mail

If you choose to vote by mail, simply mark your proxy card or voting instruction card, sign and date it, and return it in the postage-paid envelope provided.

Voting at the SpecialAnnual Meeting

The method or timing of your vote will not limit your right to vote at the SpecialAnnual Meeting if you attend the meeting and vote via the conference call.  However, if your shares are held in the name of a broker, bank or other nominee, you must obtain a proxy, executed in your favor, from the holder of record to be able to vote at the SpecialAnnual Meeting. You should allow yourself enough time prior to the SpecialAnnual Meeting to obtain this proxy from the holder of record, and send to the Secretary of the Company at least five business days before the meeting.

4


The shares represented by the proxy cards or voting instruction cards received, properly marked, signed, dated and not revoked, will be voted at the SpecialAnnual Meeting. If you sign and return your proxy card but do not give voting instructions, the shares represented by that proxy card will be voted as recommended by the Board. If you fail to return your proxy card, or if your shares are held in “street name” and you do not instruct your broker how to vote your shares by failing to complete the voting instruction card, the effect will be as though you cast a vote “against” the proposal.


Proposals 1, 2, 3


MATTER TO BE VOTED ON and 4.

 

MATTERS TO BE VOTED ON

PROPOSAL 1

ELECTION OF 20 DIRECTORS

Our Board currently consists of 21 members. At the recommendation of the Independent Directors’ Committee, the Board has nominated 20 director nominees identified in this Proposal 1 to serve a one-year term, until the 2022 Annual Meeting of Shareholders and until their successors are duly elected and qualified, or until their earlier resignation or removal. For additional information about the director nominees and their qualifications, see “Corporate Governance—Directors of BancFirst Corporation.” The nominees for the election of directors at the Annual Meeting are as follows:

Name

 

Age

 

 

Occupation

 

 

Year

First

Elected

Director

 

Dennis L. Brand

 

 

73

 

 

Vice Chairman, BancFirst Corporation

 

 

2000

 

C.L. Craig, Jr.

 

 

76

 

 

Private Investor

 

 

1998

 

F. Ford Drummond

 

 

58

 

 

Owner/Operator, Drummond Ranch

 

 

2011

 

Joseph Ford

 

 

43

 

 

President, Shawnee Milling Company

 

 

2017

 

Joe R. Goyne

 

 

75

 

 

Chairman and Chief Executive Officer, Pegasus

 

 

2019

 

David R. Harlow

 

 

58

 

 

Chief Executive Officer, BancFirst Corporation

 

 

2017

 

William O. Johnstone

 

 

73

 

 

Vice Chairman, BancFirst Corporation and President, Council Oak Partners

 

 

1996

 

Frank Keating

 

 

77

 

 

President, Frank Keating Investments

 

 

2016

 

Bill G. Lance

 

 

56

 

 

Secretary of Commerce, Chickasaw Nation

 

 

2018

 

Dave R. Lopez

 

 

69

 

 

Manager of DL Dynamics, LLC

 

 

2013†

 

William Scott Martin

 

 

71

 

 

Private Investor

 

 

2018

 

Tom H. McCasland, III

 

 

62

 

 

President, Mack Energy Co.

 

 

2005

 

David E. Rainbolt

 

 

65

 

 

Executive Chairman, BancFirst Corporation and BancFirst

 

 

1984

 

H.E. Rainbolt

 

 

92

 

 

Chairman Emeritus, BancFirst Corporation

 

 

1984

 

Robin Roberson

 

 

49

 

 

Managing Director, North America for Claim Central Consolidated

 

 

2017

 

Darryl W. Schmidt

 

 

58

 

 

Chief Executive Officer, BancFirst

 

 

2017

 

Natalie Shirley

 

 

63

 

 

President and Chief Executive Officer, National Cowboy and Western Heritage Museum

 

 

2013

 

Michael K. Wallace

 

 

67

 

 

President, Wallace Properties, Inc. and Mike Wallace Homes

 

 

2007

 

Gregory G. Wedel

 

 

60

 

 

Managing Partner, Wedel, Rahill and Associates, CPA’s

 

 

2014

 

G. Rainey Williams, Jr.

 

 

60

 

 

President, Marco Holding Corporation

 

 

2003

 

Mr. Lopez previously served as a director of the Company from 2005-2011.

Unless otherwise specified in the proxy, it is the intention of the persons named in the proxy to vote the shares represented by each properly executed proxy for the election of these nominees as directors of the Company. The nominees have agreed to stand for election and, if elected, to serve as directors. However, if any person nominated by the Board is unable or unwilling to serve, the proxies will be voted for the election of such other person or persons as the Independent Directors’ Committee and the Board may recommend.

The sections in this proxy statement titled “Corporate Governance—Directors of BancFirst Corporation” and “—Stock Ownership” provide certain information about each nominee based on data submitted by such persons, including the principal occupation of such person for at least the last five years and any public company directorships held by such person.

The Board unanimously recommends a vote “FOR” the election of the nominees to the Board.  Proxies solicited by the Board will be voted for each of the nominees unless instructions to withhold or to the contrary are given.

5


PROPOSAL 2

APPROVAL OF AMENDMENT AND RESTATEMENT OFTO THE BANCFIRST CORPORATION STOCK OPTION PLAN

TheSubject to shareholder approval, the Board has amended the BancFirst Corporation Stock Option Plan (the “Plan“Employee Plan”) was originally adopted by the Company in 1986.  The Plan is intended to incent long-term employment with the Company and its subsidiaries and to encourage ownership of common stock of the Company by certain key employees and officers of the Company and its subsidiaries, in order to increase their proprietary interest in the Company's success.  Since its adoption, the Plan has been amended numerous times to increase the totalremaining number of shares of common stock of the Company on which stock options mayauthorized to be granted after the date of such amendment to 300,000 shares. As of April 5, 2021, there were 167,500 shares of common stock available for future option grants under the Plan, to extend the term of the Plan and to adopt provisions to comply with NASDAQ Stock Market Rules.  During the past 34 years that the Plan has been in effect, there have been other changes in accounting for stock compensation and the provisions of typical stock option plans.

Capitalized terms used and not otherwise defined herein have the respective meanings contained in theEmployee Plan.

Circumstances have at times arisen that were not contemplated when the Plan was originally adopted.  For example, the current COVID-19 pandemic has had a negative effect on the market price of the Company’s stock that, through no fault of the Optionees, has rendered earlier stock option grants ineffective as an incentive for the desired behaviors previously mentioned. The Board of Directors and Company management believe and recommend that the Plan should be amended and restated to reflect additional changes in the terms and provisions of the Plan, and to provide the Board more flexibility in modifying stock option grants, in order to better accomplish the Plan’s purpose.

The principal changes to the Plan being proposed are to:

Describe the specific authority of the Committee in more detail

Provide an exception to give the Committee the authority, through cancellation and re-grant, to re-establish the Option Exercise Price of Stock Options not to exceed a total of 300,000 shares in any period of twelve (12) continuous months

Authorize the Company to retain shares of Common Stock as consideration for the payment of the Option Exercise Price

Provide a more explicit procedure Stock Option exercises

Extend the exercise period subsequent to termination related to retirement or disability to six (6) months

Authorize the Committee to reinstate a Stock Option forfeited due to termination if the Optionee resumes employment within twelve (12) months following such termination, provided that the reinstatement does not extend the expiration date of the Stock Option

Add specific provisions for tax withholding, and authorize the Company to retain shares of Common Stock to satisfy tax withholding

Expand the provision for amendments to the Plan to clarify the requirement for shareholder approval of material amendments and conform to the NASDAQ Stock Market Rules

The Board believes that the approval of the amended and restatedamendment to the Employee Plan is in the best interests of the Company and its shareholders, as the availability of an adequate number of shares reserved for issuance under the Employee Plan and the ability to grant stock options is an important factor in attracting, motivating and retaining qualified personnel essential to the success of the Company.

If the shareholders do not approve the amendment and the restatement of the Plan, the amendments described above will not be effective but the other terms and the other conditions of the Plan will continue in effect.

The complete text of the amended and restated Plan is presented as Appendix A to the Proxy Statement and the resolution to amend and to restate the Plan is presented as Appendix B to the Proxy Statement.

 

Summary of the CurrentProvisions of the Employee Plan

 

The principal features of the currentEmployee Plan are summarized below. This summary does not purport to be a complete description of all of the provisions of the Plan andEmployee Plan. The summary is qualified in its entirety by reference to the completefull text of the Sixteenth Amended and RestatedEmployee Plan, as proposed to be amended by the BancFirst Corporation Stock Option Plan.resolution to amend the stock option plan. The Sixteenth Amended and Restated BancFirst Corporation Stock Option Planresolution has been filed as Appendix A to the copy of this Proxy Statement that was filed electronically with the SEC as Exhibit 10.11 to the Company’s Quarterly Report on Form 10-Q for the Quarter Ended June 30, 2020, and can be reviewed on the SEC’s website at www.sec.gov.www.sec.gov.  A copy of the current Planplan document may also be obtained without charge by writing to Randy Foraker, Executive Vice President and Secretary at BancFirst Corporation, 101 N. Broadway, Oklahoma City, Oklahoma 73102.

 

The Employee Plan, which is not subject to the provisions of the Employee Retirement Income Security Act of 1974, provides for the grant of non-qualified stock options.

 

4


The Employee Plan is administered by the Committee.Committee. The Committee is generally the Board, certain members of which are principal shareholders and employees of the Company or its affiliates, and the Board maymay also include participants in the Employee Plan.  Pursuant to the Employee Plan, the Executive Committee of the Board may, by delegation of the Board, function as the Committee.

 

All decisions of the interpretation or application of the Plan are determined by the Committee and such decisions are final, conclusive and binding uponon all participants.

 

The maximum number of shares of common stock that may be granted pursuant to the Employee Plan is proposed to be increased from 167,500 to 300,000 shares (subject to adjustment in the event of stock dividends, stock splits, reverse stock splits, combinations, reclassifications, or like changes in the capital structure of the Company).

Currently all Planplan options must be granted, if at all, no later than December 31, 2024.

 

Stock optionsOptions may be granted only to employees (including officers) of the Company or its subsidiaries. All stockplan options must have an exercise price equal to the fair market value of the common stock on the date of grant. As defined in the Employee Plan, “fair market value” is stated to be equal to the closing price of the common stock as reported on the NASDAQ Global Market, Inc. (“NASDAQ”) on the date of grant or, if no closing price is so reported, the closing price of the common stock as reported by NASDAQ on the most recent date next preceding the date of grant.  

 

The exercise price is payable on exercise of a stockthe plan option and will generally beis payable in cash, certified check, bank draft or money order, unless otherwise determined by the Committee.Board. Unless otherwise determined by the CommitteeBoard at the time of granting a stockan option, stockplan options vest 25% per year commencing on the fourth year after grant, until the stock optionPlan Option is 100% vested. Except for termination of employment as a result of retirement or death, if an optionee ceases to be an employee of the Company for any reason, other than as a result of embezzlement, theft or other violation of law, the optionee may exercise his or her option (to the extent exercisable at the time of termination) at any time within thirty (30)30 days after termination. If an optionee ceases to be an employee of the Company due to retirement, the optionee may exercise the option (to the extent exercisable at the time of termination) at any time within threesix months after such retirement. If an optionee ceases to be an employee of the Company due to death, the optionee’s estate, personal representative, or beneficiary shall have the right to exercise the option (to the extent exercisable at the time of death) at any time within 12 months from the date of the optionee’s death.

 

During the lifetime of the optionee, a stockan option may be exercised only by the optionee. Unless otherwise provided by the Committee, no option may be assignable except (a)(i) by will, (b)(ii) by the laws of descent and distribution, (c)(iii) for the purpose of making a charitable gift, or (d)(iv) to a revocable trust of which the optionee is a trustee.

 

Except as described above, Planplan options may not have a term in excess of fifteen (15)15 years.

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The Board may terminate or amend the Employee Plan at any time; provided, however, that without the approval of the shareholders of the Company, the Board may not amend the Employee Plan to materially increase the total number of shares of common stock covered thereby, materially increase the benefits accruing to participants under the Employee Plan, or materially modify the requirements as to eligibility for participation in the Employee Plan.

 

Summary of Federal Income Tax Consequences of the Employee Plan

 

The federal tax consequences of stock options are complex and subject to change. Furthermore, the following summary is intended only as a general guide to the United States federal income tax consequences of stock options granted under the Employee Plan under current federal law, and isdoes not intendedattempt to be exhaustive.describe all potential tax consequences. In particular, this summary does not describe the deferred compensation provisions of Section 409A of the Internal Revenue Code to the extent that an award is subject to such provisions and does not describe state or local tax consequences.provision.

 

Non-qualified stock options have no special tax status.  An optionee generally recognizes no taxable income as the result of the grant of such a stockan option.  Upon exercise of the stock option, the optionee normally recognizes ordinary income with respect to the acquired shares in the amount equal toof the difference between the exerciseoption price and the fair market value of the shares on the date of exercise.  Such ordinary income generally is subject to income tax withholding requirementsof income and employment taxes.  Upon the sale of stock acquired by the exercise of a non-qualified stock option, any gain or loss, based on the difference between the sale price and the fair market value of the shares on the date of recognition of income, will be taxed as long-term or short-term capital gain or loss, depending upon the length of time the optionee has held the stock from the date of recognition of income.  

No tax deduction is available to the Company with respect to the grant of the non-qualified option or the sale of stock acquired pursuant to such grant.  Provided certain withholding requirements are met, the Company should be entitled to a deduction equal to the amount of ordinary income recognized by the optionee as a result of the exercise of the stock option.

 

Specific Benefits under the Employee Plan

 

The Company has not approved any stock options or any amendments to stock optionsawards that are conditioned upon shareholder approval of the proposed amendment and restatement of the Employee Plan. The number, the amount and the type of stock optionsawards to be received by or allocated to eligible persons in the future and such re-pricingsunder the Employee Plan cannot be determined at this time.  

 

For information regarding stock-based awards granted to the Named Executive Officers during fiscal 2020, see the material under the heading “Executive Compensation” below in this proxy statement.  For information regarding past award grants under the Employee Plan, see the “Aggregate Past Grants under the Employee Plan” table below.

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Aggregate Past Grants under the Employee Plan

 

As of October 30, 2020, stock optionsApril 5, 2021, awards covering 7,709,5127,732,512 shares (before cancellations of stock optionsawards covering 1,446,9821,316,982 shares) of the Company’s common stock had been granted under the Employee Plan. The following table shows information regarding the distribution of those stock optionsawards among the persons and groups identified below, as well as shares subject to unexercised options outstanding as of that date.

 

Aggregate Past Grants Under the Plan

Aggregate Past Grants Under the Employee Plan

Aggregate Past Grants Under the Employee Plan

Name

 

Total Shares Subject to

Previous Option Grants(1)

 

Shares Subject to Unexercised

Options Outstanding

 

Total Shares Subject to

Previous Option Grants(1)

 

Shares Subject to Unexercised

Options Outstanding

Named Executive Officers:

 

 

 

 

David R. Harlow

Chief Executive Officer

120,000

20,000

185,000

65,000

Kevin Lawrence

Executive Vice President

and Chief Financial Officer

100,000

86,750

100,000

83,000

David E. Rainbolt

Executive Chairman

120,000

120,000

Dennis L. Brand

Chairman of the Executive Committee

220,000

220,000

Darryl W. Schmidt

President and Chief Executive Officer, BancFirst

120,000

185,000

65,000

All Executive Officers as a Group

2,187,500

344,250

2,202,500

417,000

Non-Executive Officer Employee Group

4,075,030

705,580

4,213,030

615,250

 

(1)  Does not include cancellations of stock optionsawards covering 1,446,9821,316,982 shares.

 

The Board recommends a vote “FOR” the proposed amendment to the BancFirst Corporation Stock Option Plan.

THE BOARD RECOMMENDS A VOTE “FOR” THE PROPOSED

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PROPOSAL 3

APPROVAL OF AMENDMENT AND RESTATEMENT OFTO THE BANCFIRST CORPORATION

NON-EMPLOYEE DIRECTORS’ STOCK OPTION PLAN.PLAN

Subject to shareholder approval, the Board has amended the BancFirst Corporation Non-Employee Directors’ Stock Option Plan (the “Non-Employee Directors’ Plan”) to increase the remaining number of shares of common stock authorized to be granted after the date of such amendment to 50,000 shares.  As of April 5, 2021, there were 30,000 shares available for issuance under the Non-Employee Directors’ Plan.  

The Non-Employee Directors’ Plan was approved by the Company’s shareholders on June 24, 1999.  The purpose of the Non-Employee Directors’ Plan is to compensate non-management directors for participation on the Board or its committees by the automatic grant of stock options to purchase shares of the Company’s common stock.  Directors who are employees of BancFirst Corporation are not eligible to participate in the Non-Employee Directors’ Plan.

Summary of the Provisions of the Non-Employee Directors’ Plan

Following is a brief description of the principal features of the Non-Employee Directors’ Plan.  The summary is qualified in its entirety by reference to the full text of the Non-Employee Directors’ Plan, as proposed to be amended by the BancFirst Corporation resolution to amend the Non-Employee Directors’ Stock Option Plan. The resolution has been filed as Appendix B to the copy of this Proxy Statement that was filed electronically with the SEC and can be reviewed on the SEC’s website at www.sec.gov.  A copy of the plan document may also be obtained without charge by writing the Randy Foraker, Executive Vice President and Secretary at BancFirst Corporation, 101 N. Broadway, Oklahoma City, Oklahoma 73102.

Directors who are not employees of the Company are eligible to participate in the Non-Employee Directors’ Plan.  The Non-Employee Directors’ Plan is administered by our Board.  All questions of interpretation of the Non-Employee Directors’ Plan or of the options granted pursuant to the Non-Employee Directors’ Plan are determined by the Board.  However, the grants of stock options and the amount and nature of the options granted are automatic, as described below.

Under the Non-Employee Directors’ Plan, an option to purchase 10,000 shares of common stock is granted to each non-employee director upon initial appointment to the Board.  The exercise price for an option is determined by the closing price as reported on the NASDAQ Global Market (or other principal exchange on which the common stock is traded) on the business day preceding the date the option is granted.  

An option becomes exercisable in four equal annual installments beginning on the first anniversary of the date of grant, and expires on the fifteenth anniversary of the date of grant.  If a director is terminated for cause, all options will be forfeited immediately.  If a director ceases to be member of the Board for any other reason, unvested options will terminate and only previously vested options may be exercised for a period of 30 days following termination. If an optionee ceases to be a director due to death, the optionee’s estate, personal representative, or beneficiary shall have the right to exercise the option (to the extent exercisable at the time of death) at any time within 12 months from the date of the optionee’s death).  

The exercise price of an option granted under the Non-Employee Directors’ Plan must be paid upon exercise of the option and is payable in cash, certified check, bank draft or money order, unless otherwise determined by the Board.  Stock options granted under the Non-Employee Directors’ Plan are non-qualified stock options.

If the amendment to the Non-Employee Directors’ Plan is approved by our shareholders, the remaining number of shares of common stock that are reserved for issuance under the Non-Employee Directors’ Plan will be increased to 50,000 shares, (subject to adjustment in the event of stock dividends, stock splits, reverse stock splits, combinations, reclassifications, or like changes in the capital structure of the Company).  Options and shares that are forfeited or otherwise reacquired by us will again be available for the grant of options under the Non-Employee Directors’ Plan. Shares of common stock issued under the Non-Employee Directors’ Plan may be authorized but unissued shares or shares reacquired by us and held in treasury.

The Board may terminate or amend the Non-Employee Directors’ Plan at any time; provided, however, that without the approval of the shareholders of the Company, the Board may not amend the Non-Employee Directors’ Plan to materially increase the total number of shares of common stock covered thereby, materially increase the benefits accruing to participants under the plan, or materially modify the requirements as to eligibility for participation in the plan.

Summary of Federal Income Tax Consequences of the Non-Employee Directors’ Plan

The following is a general description of federal income tax consequences to our non-employee directors relating to stock options granted under the Non-Employee Directors’ Plan. This discussion does not purport to cover all federal tax consequences relating to the

8


directors or the Company, nor does it describe state, local or foreign tax consequences. In particular, this summary does not describe the deferred compensation provisions of Section 409A of the Internal Revenue Code to the extent that an award is subject to such provision.

A director will not recognize income upon the grant of a non-qualified stock option to purchase shares of common stock. Upon exercise of the option, the director will recognize ordinary compensation income equal to the excess of the fair market value over the exercise price for such shares. We will be entitled to a tax deduction equal to the amount of ordinary compensation income recognized by the director. The deduction will be allowed at the same time the director recognizes the income. The tax basis of the shares of common stock in the hands of the director will equal the exercise price paid for the shares plus the amount of ordinary compensation income the director recognizes upon exercise of the option, and the holding period for the shares for capital gains purposes will commence on the day the option is exercised. A director who sells shares of common stock acquired on exercise of the option will recognize capital gain or loss measured by the difference between the tax basis of the shares and the amount realized on the sale.

Specific Benefits under the Non-Employee Directors’ Plan

Awards under the Non-Employee Directors’ Plan are automatic to each non-employee director upon initial appointment to the Board, and the Company has not approved any awards that are conditioned upon shareholder approval of the proposed amendment of the Non-Employee Directors’ Plan.  

Aggregate Past Grants under the Non-Employee Directors’ Plan

As of April 5, 2021, awards covering 535,000 shares issuable under the Non-Employee Directors’ Plan had been granted (before cancellations of awards covering 20,000 shares), with the current non-employee directors of the Company as a group having been granted options to purchase an aggregate 260,000 shares of common stock.

The Board recommends a vote “FOR” the proposed amendment to the BancFirst Corporation Non-Employee Directors’ Stock Option Plan.

 

SHAREHOLDER COMMUNICATIONS WITHPROPOSAL 4

APPROVAL OF AMENDMENT TO THE BOARDBANCFIRST CORPORATION

Directors’ Deferred Stock Compensation Plan

Subject to shareholder approval, the Board has amended the BancFirst Corporation Directors’ Deferred Stock Compensation Plan (the “Deferred Stock Compensation Plan”) to increase the aggregate remaining number of shares available for authorization under the Deferred Stock Compensation Plan to 40,000 shares of common stock.  As of April 5, 2021, there were only approximately 19,409 shares available for authorization under the Deferred Stock Compensation Plan.  

The Deferred Stock Compensation Plan is intended to provide individuals who serve as directors of the Company or its banking subsidiary, BancFirst, or as advisory directors of the various community bank branches of BancFirst (each, a “Participating Director” and collectively, “Participating Directors”), an opportunity to defer the receipt of their director fees and to receive those deferred fees in the form of shares of common stock. All of the Company’s directors are eligible to participate in the Deferred Stock Compensation Plan.    

Summary of the Provisions of the Deferred Stock Compensation Plan

The principal features of the Deferred Stock Compensation Plan are summarized below. This summary does not purport to be a complete description of all the provisions of the Deferred Stock Compensation Plan. The summary is qualified in its entirety by the full text of the Deferred Stock Compensation Plan, as it is proposed to be amended by the BancFirst Corporation resolution to amend the Deferred Stock Compensation Plan. The resolution has been filed as Appendix C to the copy of this Proxy Statement that was filed electronically with the SEC and can be reviewed on the SEC’s website at www.sec.gov.  A copy of the plan document may also be obtained without charge by writing to Randy Foraker, Executive Vice President and Secretary at BancFirst Corporation, 101 N. Broadway, Oklahoma City, Oklahoma 73102.

Under the Deferred Stock Compensation Plan, Participating Directors may defer all or part of their director fees otherwise payable in cash.  Compensation that is deferred will be credited to each Participating Director’s account under the Deferred Stock Compensation Plan (the “Deferral Account”) in the form of Units. The number of Units credited will be determined by dividing the amount of fees deferred by the closing price of the common stock on the deferral date as reported in The Wall Street Journal or a similar publication selected by the Compensation Committee. When cash dividends are paid on common stock, the Participating Director’s Deferral Account will be credited with a number of Units determined by multiplying the number of Units in the Deferral Account on the dividend record date by the per-share dividend amount and then dividing the product by the stock price on the dividend record date.  In the case

9


of stock dividends, the Participating Director’s Deferral Account will be credited with a number of Units determined by multiplying the number of Units in the Deferral Account by the stock dividend declared.  

Following the earlier of (i) a Participating Director’s termination of service as a director or in the event of a Participating Director’s death, or (ii) the termination date of the Deferred Stock Compensation Plan, all amounts credited to a Participating Director’s Deferral Account will be paid to the Participating Director in the form of shares of common stock, the number of which shares will equal the number of Units credited to the Participating Director’s Deferral Account.  A Participating Director may elect to receive the shares in a lump sum on a date specified by the Participating Director or in substantially equal annual installments over a period not to exceed three years.  

The Deferred Stock Compensation Plan is administered by the Compensation Committee of the Board, certain members of which may also include participants in the Employee Plan. The Deferred Stock Compensation Plan may be amended or terminated at any time by the Compensation Committee.

Summary of Federal Income Tax Consequences of the Deferred Stock Compensation Plan

The following is a general description of federal income tax consequences to our non-employee directors relating to the Deferred Stock Compensation Plan. This discussion does not purport to cover all federal tax consequences relating to the directors or the Company, nor does it describe state, local or foreign tax consequences. In particular, this summary does not describe the deferred compensation provisions of Section 409A of the Internal Revenue Code to the extent that an award is subject to such provision.

The Deferred Stock Compensation Plan permits Participating Directors to defer to a later year receipt of all or a portion of their director fees that otherwise would be includible in income for tax purposes in the year in which it would have been paid. Under current tax laws, no income will be recognized by a Participating Director at the time of deferral. Upon payment, a Participating Director will recognize ordinary income in an amount equal to the sum of the fair market value of the shares of common stock received and the cash received for any fractional share.  The Company will be entitled to a deduction equal to the income recognized by the Participating Director.

Specific Benefits under the Deferred Stock Compensation Plan

The number of persons participating in the Deferred Stock Compensation Plan is 85. Because the aggregate benefits under the Deferred Stock Compensation Plan are dependent upon the number of Participating Directors who elect to participate in the Deferred Stock Compensation Plan, the portion of their directors’ fees that Participating Directors elect to defer and the market price of common stock when deferred compensation and dividends are credited to their Deferral Accounts, it is not possible to predict what benefits will be received under the Deferred Stock Compensation Plan.  

Aggregate Past Grants under the Deferred Stock Compensation Plan

The following table shows information regarding the number of Units credited to Participating Directors’ Deferral Accounts in respect of deferral of directors’ fees under the Deferred Stock Compensation Plan as of April 5, 2021.

Aggregate Past Grants Under the Deferred Stock Compensation Plan

Name

Total Number of Units Credited

Named Executive Officers:

David R. Harlow

Chief Executive Officer

Kevin Lawrence

Executive Vice President and Chief Financial Officer

David E. Rainbolt

Executive Chairman

Dennis L. Brand

Chairman of the Executive Committee

Darryl Schmidt

President and Chief Executive Officer, BancFirst

All Executive Officers as a Group

63

Non-Executive Director Group

56,567

Non-Executive Officer Employee Group

The Board recommends a vote “FOR” the proposed amendment to the BancFirst Corporation Directors’ Deferred Stock Compensation Plan.

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PROPOSAL 5

RATIFICATION OF SELECTION OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

BKD, LLP (“BKD”) was the Company’s independent registered public accounting firm for fiscal year 2020 and has been approved by the Audit Committee of the Board (the “Audit Committee”) as the Company’s independent registered public accounting firm for the fiscal year ending December 31, 2021. Although ratification is not required by the Company’s certificate of incorporation, bylaws, Oklahoma law or otherwise, the Board is submitting the appointment of BKD to the Company’s shareholders for ratification because the Company values its shareholders’ views on the independent registered public accounting firm. If the Company’s shareholders fail to ratify the appointment, it will be considered as a non-binding recommendation to the Board and the Audit Committee to consider the appointment of a different firm for fiscal year 2021. Even if the appointment is ratified, the Board and the Audit Committee may select a different independent registered public accounting firm at any time during the year if it determines that such a change would be in the best interests of the Company and its shareholders.

Representatives of BKD are expected to attend the Annual Meeting and will have an opportunity to make a statement or to respond to appropriate questions from shareholders. BKD has advised the Company that they are independent with respect to the Company.

Pre-Approval Policies and Procedures

The Audit Committee has established a policy to pre-approve all audit services and non-audit services performed by our independent registered public accounting firm. The Audit Committee also considers whether such services are consistent with the SEC’s rules on auditor independence and considers whether our independent registered public accounting firm is positioned to provide us with effective and efficient audit services needed to properly manage risk or improve audit quality. In its review of any non-audit service fees, the Audit Committee considers, among other things, the possible effect of the performance of such services on the auditor’s independence.  No non-audit services were performed for the Company by BKD during 2020 or 2019. The Audit Committee pre-approved 100% of audit fees and audit-related fees during the year ended December 31, 2020.

The following table shows the fees billed for the audit provided by BKD during the years ended December 31, 2020 and 2019.

 

 

2020

 

 

2019

 

Audit fees

 

$

764,352

 

 

$

726,819

 

Audit-related fees

 

 

 

 

Tax fees

 

 

 

 

All other fees

 

 

 

 

Total

 

$

764,352

 

 

$

726,819

 

Audit fees for professional services rendered by BKD include fees related to the audits of the Company and of certain of our subsidiaries, other attestation services, internal control audits and assistance with interpretation of accounting standards.

Additional information concerning the Audit Committee and its activities with BKD can be found in the following sections of this proxy statement: “Corporate Governance—Audit Committee” and “Audit Committee Report.”

The Board recommends a vote “FOR” the ratification of the appointment of BKD as the independent registered public accounting firm of the Company for 2021.  Proxies solicited by the Board will be voted for the proposal unless contrary instructions are given.

CORPORATE GOVERNANCE

The Company complies with all federal laws affecting corporate governance and disclosures, such as the Sarbanes-Oxley Act of 2002 and rules adopted by the SEC and NASDAQ, as well as various governance best practices.

Director Independence

The NASDAQ’s listing standards require our Board to be comprised of at least a majority of independent directors.  For a director to be considered independent, the Board must determine that the director does not have any direct or indirect material relationship with the Company. Based on the independence standards prescribed by NASDAQ, our Board has affirmatively determined that each of the following directors is independent:  C. L. Craig, Jr., F. Ford Drummond, Joseph Ford, Frank Keating, Bill G. Lance, Dave R. Lopez, William Scott Martin, Tom H. McCasland III, Ronald J. Norick, Robin Roberson, Natalie Shirley, Michael K. Wallace, Gregory G. Wedel and G. Rainey Williams, Jr.  In addition, as prescribed by the NASDAQ Marketplace Rules, these independent directors have at least one scheduled meeting without management present.  See “Corporate Governance—Independent Directors’ Committee.”

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In determining independence, the Board reviews whether directors have any material relationship with the Company. The Board considers all relevant facts and circumstances. In assessing the materiality of a director’s relationship to the Company, the Board considers the issues from the director’s standpoint and from the perspective of the persons or organizations with which the director has an affiliation and is guided by the standards set forth below. The Board reviews commercial, industrial, banking, consulting, legal, accounting, charitable and familial relationships. An independent director must not have any material relationship with the Company, directly or as a partner, shareholder or officer of an organization that has a relationship with the Company, or any relationship that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director.

A director will not be considered independent in the following circumstances:

(1)

The director is, or has been in the past three years, an employee of the Company, or an immediate family member of the director is, or has been in the past three years, an executive officer of the Company.

(2)

The director has received, or has an immediate family member who has received during any twelve-month period within the last three years, more than $120,000 in direct compensation from the Company, other than compensation for Board service, compensation received by the director’s immediate family member for service as a non-executive employee of the Company, and pension or other forms of deferred compensation for prior service with the Company that is not contingent on continued service.

(3)

(A) The director or an immediate family member is a current partner of the firm that is the Company’s external auditor; (B) the director is a current employee of such a firm; (C) the director has an immediate family member who is a current employee of such a firm and who participates in the firm’s audit, assurance or tax compliance (but not tax planning) practice; or (D) the director or an immediate family member is or was within the last three years (but is no longer) a partner or employee of such a firm and personally worked on the Company’s audit within that time.

(4)

The director or an immediate family member is, or has been in the past three years, employed as an executive officer of another company where any of the Company’s present executive officers at the same time serves or has served on that company’s compensation committee.

(5)

The director is, or has an immediate family member who is, a partner in, or a controlling shareholder or an executive officer of, any organization to which the Company made, or from which the Company received, payments for property or services in the current or any of the past three fiscal years that exceed the greater of 5% of the recipient’s consolidated gross revenues for that year, or $200,000.

For these purposes, an “immediate family member” includes a director’s spouse, parents, children, siblings, mother-and father-in-law, sons-and daughters-in-law, brothers-and sisters-in-law, and anyone who shares the director’s home.

Board Refreshment and Assessment

Effective Board refreshment and assessment processes are an integral part of corporate governance. No person can be nominated for election as a director after attaining the age of 79 years old, so there is an ongoing need to identify and consider new director candidates. The Board Issues Committee is responsible for identifying director candidates, assessing the skills and performance of continuing directors, and recommending candidates for nomination to the Independent Directors Committee for their consideration as directors for the annual election and filling any Board vacancies.  

Director Qualifications

The Company has no specified Board membership criteria that apply to nominees recommended for a position on the Company’s Board.  However, members of the Board should have the highest professional and personal ethics and values, consistent with the Company’s longstanding values and standards. They should also have broad experience at the policy-making level in business, government, education, technology or public service. In addition, directors should represent a diversity of viewpoints, backgrounds, experiences, gender and other demographics. They should be committed to enhancing shareholder value and should have sufficient time to carry out their duties and to provide insight and practical wisdom based on experience.  Directors’ service on other boards of public companies should be limited to a number that permits them, given their individual circumstances, to perform responsibly all director duties.

Identifying and Evaluating Candidates for Directors

Candidates may come to the attention of the Board Issues Committee through current Board members, shareholders or other persons. Identified candidates may be considered at any point during the year. As described below, the Independent Directors’ Committee will consider properly submitted shareholder recommendations for candidates for the Board to be included in the Company’s proxy statement. In making its nominations, the Independent Directors’ Committee seeks to achieve a diversity of backgrounds, experience, skill-sets, ethnicity and gender on the Board.

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Shareholder Recommendations

The policy of the Independent Directors’ Committee is to consider properly submitted shareholder recommendations of candidates for membership on the Board as described above under “Identifying and Evaluating Candidates for Directors.”  In evaluating any such recommendations, the Independent Directors’ Committee will consider the balance of knowledge, experience and capability on the Board and will address the membership criteria set forth above under “Director Qualifications.” Any shareholder recommendations proposed for consideration by the Independent Directors’ Committee should include the candidate’s name and qualifications for Board membership and should be addressed to the Secretary pursuant to the procedure described under the heading “Proposals for the 2022 Meeting of Shareholders.”

Skillset of Director Nominees

The Company believes the following skills should be represented in its Board of Directors to help ensure the success of the Company.

Accounting/Finance

Healthcare

Agriculture

Investments

Corporate Governance

Law

Economic Development

Manufacturing

Energy

Public Relations/Marketing

Engineering

Real Estate

Entrepreneurship/Small Business

Technology

Government Affairs

To ensure that the Board has an appropriate mix of skills and experiences, the Board Issues Committee has prepared and evaluated the skill matrix below for the directors nominated for election. The skills listed were limited to three top skills for each director.

Name of Director

Director Skills Matrix

Dennis L. Brand

Accounting/Finance

Economic Development

Corporate Governance

C. L. Craig, Jr.

Investments

Entrepreneurship/Small Business

Real Estate

F. Ford Drummond

Law

Investments

Agriculture

Joseph Ford

Manufacturing

Technology

Agriculture

Joe R. Goyne

Accounting/Finance

Public Relations/Marketing

Corporate Governance

David R. Harlow

Accounting/Finance

Engineering

Corporate Governance

William O. Johnstone

Investments

Accounting/Finance

Corporate Governance

Frank Keating

Law

Government Affairs

Economic Development

Bill G. Lance

Government Affairs

Healthcare

Public Relations/Marketing

Dave R. Lopez

Government Affairs

Corporate Governance

Public Relations/Marketing

William Scott Martin

Accounting/Finance

Investments

Entrepreneurship/Small Business

Tom H. McCasland, III

Energy

Investments

Entrepreneurship/Small Business

David E. Rainbolt

Accounting/Finance

Government Affairs

Corporate Governance

H. E. Rainbolt

Accounting/Finance

Public Relations/Marketing

Economic Development

Robin Roberson

Entrepreneurship/Small Business

Technology

Public Relations/Marketing

Darryl W. Schmidt

Accounting/Finance

Agriculture

Corporate Governance

Natalie Shirley

Law

Government Affairs

Corporate Governance

Michael K. Wallace

Entrepreneurship/Small Business

Public Relations/Marketing

Real Estate

Gregory G. Wedel

Accounting/Finance

Investing

Real Estate

G. Rainey Williams, Jr.

Investments

Law

Real Estate

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Directors of BancFirst Corporation

The following information about each nominee for director to our Board, includes their business experience, director positions held currently or at any time during the last five years, and the experiences, qualifications, attributes or skills that caused the Independent Directors’ Committee and our Board to determine that each individual should serve as one of our directors. The following information is current as of April 5, 2021:

Name (Age)

Business Experience During Past 5 Years and Other Information

Dennis L. Brand (73)

Mr. Brand became Chairman of the Executive Committee in May 2017. Mr. Brand has been a Vice Chairman of the Company since 2013. Prior to that, he was Senior Executive Vice President of the Company starting in 2005. He was President and Chief Executive Officer of BancFirst from 2005 to 2017. He was Executive Vice President and Chief Operating Officer of the Company from October 2003 to December 2004.  From 1999 to 2003 he was Executive Vice President of Community Banking at BancFirst.  He was a Regional Executive and President of BancFirst Shawnee from 1992 to 1999.

Mr. Brand’s executive experience in the banking industry specifically in lending and operations, along with his knowledge and awareness of the communities we serve, make him well qualified to serve as a director.

C. L. Craig, Jr. (76)

Mr. Craig is self-employed in the investment and management of personal financial holdings.  He served as Chairman of the Board of Directors of Lawton Security Bancshares, Inc. from 1983 until 1998.

Mr. Craig’s extensive business and investment experience, together with his prior experience serving as a bank director and his familiarity with community banking, make him well qualified to serve as a director.

F. Ford Drummond (58)

Mr. Drummond is currently the Owner/Operator of Drummond Ranch in Pawhuska, Oklahoma. He served as General Counsel for BMI-Health Plans from 1998 to 2008.  He has served on the Board of Trustees for Allianz Funds in New York since 2005. He was also a member of the Oklahoma Water Resources Board, an Oklahoma state government regulatory board, from 2006 to 2017. In addition, he was a director of The Cleveland Bank in Cleveland, Oklahoma, from 1998 to 2012.

Mr. Drummond’s business experience, together with his prior experience serving as a bank director and his knowledge and awareness of the communities we serve, make him well qualified to serve as a director.

Joseph Ford (43)

Joe R. Goyne (75)

Mr. Ford has served as the President of Shawnee Milling Company, a family-owned milling company, since 2016. He was the Vice President of Operations of Shawnee Milling Company from 2005 to 2009, and then was the Senior Vice President of Operations from 2009 to 2016. From 2000 to 2003, Mr. Ford was an Information Consultant for Accenture Information Technology Consulting. He is also involved in a broad array of civic and community affairs.

Mr. Ford’s business and management experience and his knowledge and awareness of the communities we serve, makes him well qualified to serve as a director.

Mr. Goyne is currently the Chairman and Chief Executive Officer of Pegasus in Dallas, Texas. Mr. Goyne graduated from Hendrix College with a BA in Economics. He has worked in the banking industry for over fifty years and has served on several boards throughout his career.

Mr. Goyne’s executive management experience in banking, along with his knowledge and awareness of the Dallas market, make him well qualified to serve as a director.

14


Name (Age)

Business Experience During Past 5 Years and Other Information

David R. Harlow (58)

Mr. Harlow became Chief Executive Officer of BancFirst Corporation in May 2017.  Mr. Harlow joined the Company in 1999 as Executive Vice President and Manager of Commercial Banking for BancFirst Oklahoma City.  He was President of BancFirst Oklahoma City from 2003 to 2017 and has been a Regional Executive since 2004.  He has also been a director of BancFirst since 2014.

Mr. Harlow’s banking experience, knowledge of the Oklahoma City market and the markets we serve make him well qualified to serve as a director.

William O. Johnstone (73)

Mr. Johnstone is the Chief Executive Officer of Council Oak Partners, LLC, a subsidiary of the Company.  He is also the Chief Executive Officer of Council Oak Investment Corporation and Council Oak Real Estate, Inc., both of which are subsidiaries of BancFirst.  He has been a Vice Chairman of the Company since 1996.  From 1996 to 2001, he served as Chairman and Chief Executive Officer of C-Teq, Inc., a company that provided data processing services to financial institutions.  From 1985 until 1996, Mr. Johnstone served as President and Chairman of the Board of City Bankshares, Inc. and its subsidiary, City Bank, Oklahoma City, Oklahoma.

Mr. Johnstone’s banking and investment experience specifically in private equity and commercial banking make him well qualified to serve as a director.

Frank Keating (77)

Governor Keating is a former governor of the State of Oklahoma and retired CEO of the American Bankers Association. He had a 30-plus year career in public service including his service as U.S. Attorney for the Northern District of Oklahoma, Assistant Secretary of the U.S. Treasury Department, Associate Attorney General of the United States, and member of the Oklahoma state House and Senate. He currently serves on the board of Citizens, Inc., a publicly held life insurance company.

Governor Keating’s extensive career in law and public service, and his experience as President and CEO of the American Bankers Association, make him well qualified to serve as a director.

Bill G. Lance (56)

Mr. Lance is the Secretary of Commerce for the Chickasaw Nation and is responsible for the management of all commercial business enterprises of the Chickasaw Nation. He received a Master of Public Health degree from the University of Oklahoma, College of Public Health, Bachelor of Science degree from East Central University, and a Fellow of the America College of Healthcare Executives.

Mr. Lance’s executive management experience, his public service, and his extensive civic involvement make him well qualified to serve as a director.

Dave R. Lopez (69)

Mr. Lopez served as Secretary of State of the State of Oklahoma from March 2017 to March 2018. Prior to that he was an independent executive consultant. Mr. Lopez served as the Interim Superintendent of Oklahoma City Public Schools from 2013 to 2014. Mr. Lopez served as the Secretary of Commerce and Tourism for the State of Oklahoma from 2012 to 2013 and also as the Executive Director of the Oklahoma Department of Commerce from 2011 to 2012. He was the President of American Fidelity Foundation, a private foundation, from 2006 to 2011. Mr. Lopez was President of Downtown Oklahoma City, Inc., a non-profit organization, from 2004 to September 2006.  In 2003, he was Vice President of Development for the Oklahoma Arts Institute. From 1979 to 2001, Mr. Lopez held various officer positions with SBC Communications, Inc. (now AT&T Inc.), a publicly held telecommunications company, including as President of SBC’s Oklahoma and Texas operations. He is a National Association of Corporate Directors (NACD) Board Leadership Fellow. NACD Fellowship is a comprehensive and continuous study program for directors.

Mr. Lopez’s executive management experience, his public service, and his extensive civic involvement make him well qualified to serve as a director.

15


Name (Age)

Business Experience During Past 5 Years and Other Information

William Scott Martin (71)

Mr. Martin was a principal shareholder and Chairman of the Board of both First Wagoner Corporation and First Chandler Corp., until their merger into BancFirst Corporation in January 2018. He is also a director of First Bank of Burkburnett, Texas. Mr. Martin is a former director of First Chandler USA, Inc. and its subsidiary National American Insurance Company.

Mr. Martin’s executive management experience in banking, along with his knowledge and awareness of the communities we serve, make him well qualified to serve as a director.

Tom H. McCasland, III (62)

Mr. McCasland has been President of Mack Energy Co., a privately-owned exploration and production company, since 1996 and was a community director of BancFirst Duncan from 1998 to 2015.  Mr. McCasland has been a director of Investors Trust Company, an Oklahoma-chartered trust company, since 1984.  He previously served on the Board of Directors of Cache Road National Bank of Lawton, Oklahoma, and Charter National Bank of Oklahoma City, Oklahoma.

Mr. McCasland’s extensive business and management experience in the oil and gas industry, together with his prior experience as a bank director and his knowledge and awareness of the communities we serve, make him well qualified to serve as a director.

David E. Rainbolt (65)

Mr. Rainbolt became Executive Chairman of both BancFirst Corporation and BancFirst in May of 2017.  He was elected Chairman of the Board of BancFirst Corporation in March 2017, and has served as Chairman of BancFirst since 2005. He was President and Chief Executive Officer of the Company from January 1992 to May 2017 and was Executive Vice President and Chief Financial Officer of the Company from July 1984 to December 1991. He currently serves on the board of OGE Energy Corp., a public company engaged in the energy delivery business.

Mr. Rainbolt’s executive management experience in banking, and specifically in bank acquisitions and corporate finance, along with his knowledge and awareness of the communities we serve, make him well qualified to serve as a director.

H. E. Rainbolt (92)

Mr. Rainbolt became Chairman Emeritus in March 2017, after having served as Chairman of the Board of the Company from 1984 to March 2017. He was its President and Chief Executive Officer from 1984 to 1991 and was the Chairman of BancFirst until 2005. From 1996 to 2014, Mr. Rainbolt was also a director of Sonic Corp., a publicly-held franchiser of fast-food restaurants.  H. E. Rainbolt is the father of David E. Rainbolt.

Mr. Rainbolt’s extensive business and management experience, together with his long career in the banking industry and his knowledge and awareness of the communities we serve, makes him well qualified to serve as a director.

Robin Roberson (49)

Ms. Roberson is the Managing Director, North America for Claim Central Consolidated, a provider of technology solutions for claims fulfillment.  She was President and co-founder of Goose & Gander a boutique consultancy firm, from to 2019 to 2020.  From 2009 to 2019, she was the Chief Executive Officer and co-founder of WeGoLook, an international on-demand field services company, and was its Vice Chairman of the Board from 2019 to 2020.  Ms. Roberson has also served on the board of several nonprofit and professional organizations, and has won multiple awards highlighting her commitment to customers, business organizations and her community.

Ms. Roberson’s extensive business and management experience make her well qualified to serve as a director.

Darryl W. Schmidt (58)

Mr. Schmidt was appointed Chief Executive Officer of BancFirst in May of 2017. Mr. Schmidt was Chief Credit Officer of the Company from 2002 to 2015.  Beginning in 2007 he served in a dual role as Chief Credit Officer and Director of Community Banking until late 2015, at which time these roles were again separated.  He has been a director of BancFirst since 2003.

Mr. Schmidt’s banking experience and knowledge of the markets we serve throughout Oklahoma make him well qualified to serve as a director.

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Name (Age)

Business Experience During Past 5 Years and Other Information

Natalie Shirley (63)

Ms. Shirley has served as President and Chief Executive Officer of the National Cowboy and Western Heritage Museum since January 2018.  From 2011 to 2017 she was President of Oklahoma State University - Oklahoma City (OSU-OKC). From 2015 through 2017, Ms. Shirley served as Secretary of Education and Workforce Development for the State of Oklahoma. She served in Governor Brad Henry’s Cabinet as Oklahoma’s Secretary of Commerce and Tourism from 2007 to 2011. In this position, she was the liaison between the Governor, five major state agencies and more than 30 smaller agencies, authorities and institutions.  During this time, Ms. Shirley also served as the Executive Director of the Department of Commerce, the state’s leading economic development agency.

Ms. Shirley’s extensive business and management experience, along with her understanding of the state we serve, make her well qualified to serve as a director.

Michael K. Wallace (67)

Mr. Wallace has been the President and owner of Wallace Properties, Inc. and Mike Wallace Homes, Inc., privately-owned real estate development and homebuilding companies, since 1994. Mr. Wallace has also served on the community board of the BancFirst Jenks branch since 1999.

Mr. Wallace’s extensive business and management experience, together with his knowledge and awareness of the communities we serve, makes him well qualified to serve as a director.

Gregory G. Wedel (60)

Mr. Wedel has been managing partner of Wedel Rahill & Associates, CPAs, PLC since 1984.  He started his career in public accounting with Peat Marwick (now KPMG). Mr. Wedel is a member of the American Institute of Certified Public Accountants and the Oklahoma Society of Certified Public Accountants. He previously served on the Board of Directors and credit committee of Kirkpatrick Bank, Oklahoma City, from 2000 to 2014. He also serves on the boards of a number of regional, privately-owned companies.

Mr. Wedel’s extensive business and management experience, together with his accounting knowledge, makes him well qualified to serve as a director.

G. Rainey Williams, Jr. (60)

Mr. Williams has been President of Marco Holding Corporation, a private investment partnership, and its predecessors, since 1988.  He is a member of the Company’s Senior Trust Committee and was an advisory director from 2000 to 2003.  Mr. Williams was a director of American Trailer Works, a privately-held manufacturer of utility and cargo trailers, until its sale in 2016. He is a past Chairman of the Board of Trustees of the YMCA Retirement Fund, and serves on the boards of several other not-for-profit entities and other privately-owned for-profit companies.

Mr. Williams’ extensive business and investment experience, together with his prior experience serving as a director and his knowledge of private equity investments, make him well qualified to serve as a director.


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Board Structure and Committee Composition

As of the date of this proxy statement, our Board has 21 directors and the following six standing committees: (1) Executive Committee, (2) Audit Committee, (3) Compensation Committee, (4) Independent Directors’ Committee, (5) Board Issues Committee, and (6) Sustainability Committee. The committee membership and meetings during the last fiscal year and the function of each of the standing committees are described below.  During fiscal 2020, the Board held 12 meetings. Each current director attended at least 75% of all Board and applicable standing committee meetings. Directors are encouraged to attend annual meetings of the Company’s shareholders. All then-current directors, with the exception of Frank Keating, Bill G. Lance, Dave R. Lopez, and Robin Roberson, attended the previous annual meeting of shareholders.

 

Name of Board Committee

 

 

Name of Director

Executive

Audit

Compensation

Independent Directors

Board Issues

 

Sustainability

Dennis L. Brand

Chairman

 

 

 

 

 

 

C. L. Craig, Jr.

 

 

 

Member

 

 

 

F. Ford Drummond

 

 

Member

Member

 

 

 

Joseph Ford

 

Member

Member

Member

 

 

 

Joe R. Goyne

 

 

 

 

 

 

 

David R. Harlow

Member

 

 

 

 

 

Member

William O. Johnstone

 

 

 

 

 

 

 

Frank Keating

 

 

 

Member

 

 

 

Bill G. Lance

 

 

 

Member

 

 

 

Dave R. Lopez

 

 

 

Member

 

 

 

William Scott Martin

 

Member 

 

Member

 

 

 

Tom H. McCasland, III

 

 

 

Member

 

 

 

Ronald J. Norick

 

 

 

Member

 

 

 

David E. Rainbolt

Member

 

 

 

Chairman

 

 

H. E. Rainbolt

Member

 

 

 

Member

 

 

Robin Roberson

 

Member

 

Member

 

 

Member

Darryl W. Schmidt

Member

 

 

 

 

 

 

Natalie Shirley

 

 

 

Member

 

 

 

Michael K. Wallace

 

 

 

Member

 

 

 

Gregory G. Wedel

 

Chairman

 

Member

 

 

 

G. Rainey Williams, Jr.

 

 

Chairman

Chairman

Member

 

 

Meetings in fiscal 2020

12

12

1

1

1

 

0

Board Leadership Structure and Risk Oversight

The Company’s senior leadership is shared between two positions — the Chief Executive Officer and the Executive Chairman of the Board. Separating these positions allows the Company’s Chief Executive Officer to focus on the Company’s day-to-day business, while allowing the Executive Chairman of the Board to lead the Company’s Board in its fundamental role of oversight of management.  The Company believes that, generally, the separated role of Executive Chairman and Chief Executive Officer provides an appropriate balance between leadership and independent oversight.  However, the Company’s bylaws do not require separation of the offices of Executive Chairman and Chief Executive Officer, and the Board believes this determination should be made in the Company’s best interests based on the circumstances at the time.  

In deciding which board leadership structure it believes will provide the most effective leadership and board oversight for the Company, the Board considers a range of factors. The factors include, but are not limited to: the Company’s operating and financial performance under the existing board leadership structure; recent or anticipated changes in the CEO role; and the effectiveness of current processes and structures for Board interaction with and oversight of management. The Board will continue to exercise its judgment periodically

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to determine the board leadership structure that it believes will provide appropriate leadership, direction and oversight, while facilitating the effective functioning of both the Board and management.

The Board is charged with general oversight of the management of the Company’s risks. The Board considers risks, as appropriate, among other factors in reviewing the Company’s strategy, business plan, budgets and major transactions. Each of the Board’s committees assists the Board in overseeing the management of the Company’s risks within the areas delegated to the committee. In particular, the Executive Committee assists the Board by reviewing reports from management on at least an annual basis on the risks facing the Company, management’s actions to address those risks and the Company’s risk management processes. Following its reviews of the reports, the Executive Committee reports the results of its reviews to the full Board. The Audit Committee assists the Board with oversight of operational and compliance risk by reviewing internal audit reports from the Company’s Chief Internal Auditor. The Compensation Committee oversees risks related to the Company’s compensation programs and policies and meets at least annually with the Executive Chairman to discuss such risks. The BancFirst Senior Loan Committee is responsible for the oversight of credit risk of BancFirst, on which it reports monthly to the Board. The BancFirst Administrative Committee assists the Board and BancFirst executive management with the oversight of risks other than credit risk.

Executive Committee

The Executive Committee has the authority to exercise all the powers of the full Board during the intervals between Board meetings, except the power to amend the Bylaws and those powers specifically delegated to other committees of the Board.  Members of the Executive Committee in 2020 were directors Dennis L. Brand (Chairman), James R. Daniel, David R. Harlow, David E. Rainbolt, H.E. Rainbolt and Darryl W. Schmidt, and executive officers Roy C. Ferguson, K. Gordon Greer.

Audit Committee

The Audit Committee of the Company also serves as the Audit Committee of BancFirst.  The Audit Committee is responsible for conducting an annual examination of the Company and for ensuring that adequate internal controls and procedures are maintained.  An independent registered public accounting firm is engaged to conduct the annual examination and the Audit Committee meets with the independent registered public accounting firm to discuss the scope and results of the examination.  The Chief Internal Auditor and the Executive Vice President of Asset Quality report to the Audit Committee, and the Chief Risk Officer meets with the Audit Committee representing management.

Members of the Audit Committee in 2020 were Joseph Ford, William Scott Martin, Robin Roberson and Gregory G. Wedel (Chairman).  The Board has determined that each such member of the Audit Committee was independent pursuant to applicable NASDAQ and SEC rules. The Board also determined that Mr. Wedel is an audit committee financial expert as defined by applicable SEC rules. The Board also determined that Mr. Martin is a banking industry expert. The Audit Committee has a written charter. The charter is available on the Company’s website under Investor Relations. A free printed copy is available to any shareholder who requests it from the Secretary at the address on the cover of this Proxy Statement. The report of the Audit Committee is included herein under the heading “Audit Committee Report”.

Compensation Committee

The Compensation Committee of the Company determines the compensation of the Chief Executive Officers of BancFirst Corporation and BancFirst, and reviews and approves the compensation of the other executive officers of the Company. During 2020, the Compensation Committee was composed of F. Ford Drummond, Joseph Ford and G. Rainey Williams, Jr. (Chairman), each of whom has been determined by the Board to be independent directors under applicable NASDAQ and SEC standards. The report of the Compensation Committee is included herein under the heading “Compensation Committee Report”.  The Compensation Committee has a written charter. The charter is available on the Company’s website under Investor Relations. A free printed copy is available to any shareholder who requests it from the Secretary at the address on the cover of this Proxy Statement.

Independent Directors’ Committee

The Independent Directors’ Committee meets at least annually in executive session to discuss significant matters and review the actions of management of the Company, and serves as the Board’s nominating committee. The Independent Directors’ Committee consists of those directors who meet the applicable NASDAQ and SEC independence requirements, which during 2020 were C. L. Craig, Jr., F. Ford Drummond, Joseph Ford, Frank Keating, Bill G. Lance, Dave R. Lopez, William Scott Martin, Tom H. McCasland III, Ronald J. Norick, Robin Roberson, Natalie Shirley, Michael K. Wallace, Gregory G. Wedel and G. Rainey Williams, Jr. The Independent

19


Directors’ Committee has a written charter. The charter is available on the Company’s website under Investor Relations. A free printed copy is available to any shareholder who requests it from the Secretary at the address on the cover of this Proxy Statement.

Executive sessions of the Independent Directors Committee are held at least once a year. The sessions are scheduled and chaired by the lead independent director, who in 2020 was G. Rainey Williams, Jr. Any independent director may request that an additional executive session be scheduled.

Board Issues Committee

The Board Issues Committee considers matters regarding membership, processes, education, and compensation of the Board itself. The Board Issues Committee makes recommendations regarding these matters to the Independent Directors Committee and the full Board for approval. During 2020 the members of the Board Issues Committee were David E. Rainbolt, H.E. Rainbolt and G. Rainey Williams, Jr. (Chairman). The Board Issues Committee has a charter, and a copy is available to any shareholder who requests it from the Secretary at the address on the cover of this Proxy Statement. The Board Issues Committee meets at least annually, but may meet more frequently as its members consider necessary. It met once in 2020.

Sustainability Committee

The Sustainability Committee was organized in 2021 to assist the Board and executive management with developing a strategy for enhancing sustainability and incorporating environment, social and governance factors into BancFirst’s business processes. The members of the Sustainability Committee are directors David R. Harlow and Robin Roberson, and executive officers Scott Copeland, Randy Foraker (Chairman), Kelly Foster, Kevin Lawrence, and Dara Wanzer. The Sustainability Committee reports to the Executive Committee, which in turn reports to the Board of Directors. A copy of the Company’s Sustainability Report can be viewed under the Investor Relations link found on the Company’s website at www.bancfirst.bank.

In addition to the foregoing standing committees of the Board, BancFirst has the following standing management committees:

Senior Loan Committee of BancFirst

The Senior Loan Committee of BancFirst is a management committee that assists the Board and executive management with the administration of corporate credit policies and procedures, and evaluates loans within its designated policy guidelines. During 2020 the members of the Senior Loan Committee were Dennis L. Brand, James R. Daniel, Roy C. Ferguson (Chairman), K. Gordon Greer, David R. Harlow, David E. Rainbolt, H.E. Rainbolt and Darryl W. Schmidt. The Senior Loan Committee generally meets weekly.

Asset/Liability Committee of BancFirst

The Asset/Liability Committee (ALCO) of BancFirst is a management committee that administers BancFirst’s corporate investment and asset/liability management policies and procedures, and manages BancFirst’s liquidity, interest rate risk and market risk. During 2020, the members of the ALCO were Dennis L. Brand, Randy Foraker, David R. Harlow, Kevin Lawrence, Robert M. Neville (Chairman), David E. Rainbolt and Darryl W. Schmidt. The ALCO generally meets monthly.

Administrative Committee of BancFirst

The Administrative Committee of BancFirst is a management committee that assists the Board and executive management with administration of corporate policies and procedures, oversight of risks other than credit risk, and with other matters concerning the management of BancFirst’s business. During 2020, the members of the Administrative Committee were Dennis L. Brand, Scott Copeland, James R. Daniel, Greg Diehl, Randy Foraker, Kelly Foster, D. Jay Hannah, David R. Harlow, Kevin Lawrence, Robert M. Neville, Brian Pierson, David E. Rainbolt (Chairman), Darryl W. Schmidt, Dara Wanzer, Jennifer Weast and David Westman. The Administrative Committee generally meets monthly.

Anti-Hedging Policy

The Company has an Anti-Hedging Policy for all directors, officers and employees. The policy prohibits any employee, officer or director from engaging in any transactions to hedge or offset any decrease in the market value of equity securities of the Company. In addition, all employees, officers and directors are prohibited from engaging in “short-swing” trading of securities issued by the Company by purchasing and selling, or selling and repurchasing such securities within a period of less than six months. The Company does not prohibit pledging of equity securities of the Company.

20


Corporate Code of Conduct

We have adopted a Code of Conduct that applies to all directors, officers and employees of the Company. The purpose of the Code of Conduct is to promote honest and ethical conduct and compliance with the law, particularly as related to the maintenance of the Company’s financial books and records and the preparation of its financial statements.  In addition, the Code of Conduct sets forth our corporate ethics based on a set of core values by which we operate our Company and conduct our daily business with our customers, vendors and shareholders and with our fellow employees. Anti-bribery provisions are embodied in our Code of Conduct, which prohibit all directors, officers and employees from authorizing or making any improper payment for any form of bribery, payoff, illegal contribution, or other payments of a questionable nature to individuals, businesses or government entities. The Code of Conduct also includes information for EthicsPoint, a comprehensive, anonymous Internet and telephone based reporting tool that assists management and employees to work together to address fraud, inappropriate conduct, harassment, discrimination, or other matters in the workplace. All EthicsPoint reports are reviewed, investigated, and addressed, as applicable, by the Company’s Director of Human Resources, Chief Executive Officer, Executive Chairman, Chief Internal Auditor, and Chair of the Audit Committee of the Board of Directors. Retaliation against any reporting person, including whistle-blowers, is explicitly prohibited. Copies of the Code of Conduct may be requested from the Secretary at the address on the cover of this proxy statement. A copy of our Code of Conduct can be viewed under the Investor Relations link found on the Company’s website at www.bancfirst.bank.

Shareholder Communications with the Board

Shareholders and other interested parties may communicate with one (1) or more members of the Board in writing by regular mail. The following address may be used by those who wish to send such communications:

Board of Directors

c/o Secretary

BancFirst Corporation

101 N. Broadway

Oklahoma City, Oklahoma 73102

Such communication should be clearly marked “Shareholder-Board Communication.Communication.” The communication must indicate whether it is meant to be distributed to the entire Board or to specific members of the Board, and must state the number of shares of common stock beneficiallybeneficially owned by the shareholder making the communication. The Secretary has the authority to disregard any inappropriate communications. If deemed an appropriate communication, the Secretary will submit the correspondence to the Executive Chairman of the Board or to any specific director to whom the correspondence is directed.

6COMPENSATION COMMITTEE REPORT

The Compensation Committee of the Board evaluates and recommends to the Board, the compensation of the Chief Executive Officers of BancFirst Corporation and BancFirst, considering any performance factors, market compensation information and management recommendations that it deems appropriate. The Compensation Committee also reviews and approves, the compensation of the other executive officers of the Company. In connection with these duties, the Compensation Committee meets at least annually with the Executive Chairman to discuss, review and evaluate the relationship between our risk management policies and practices and executive compensation arrangements. This meeting includes a review of the structure and components of our compensation arrangements, the material potential sources of risk in our business lines and compensation arrangements and our various policies and practices that mitigate these risks. Within this framework, a variety of topics are discussed, including the parameters of acceptable and excessive risk taking (recognizing that some risk taking is an inherent part of operating any business) and the general business goals and concerns of the Company, including the need to attract, retain and motivate qualified executives and other personnel.

The Compensation Committee believes that our overall compensation practices for our executive officers, which include the following elements, limit the ability of executive officers to benefit from taking unnecessary or excessive risks:

executive compensation that is heavily weighted toward fixed salaries;

maximum payouts that limit the aggregate payout potential of cash incentive compensation;

a strong alignment of risk management goals and incentive pay;

balance between short-term and long-term incentive compensation opportunities; and

the Company’s historical emphasis on character and integrity at all levels of the organization.

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The Compensation Committee has reviewed and discussed with management the Compensation Discussion and Analysis included in this proxy statement under the heading “Executive Compensation”. Based on this review and discussion, the Compensation Committee has recommended to the Board that the Compensation Discussion and Analysis be included in this proxy statement and incorporated by reference into our Annual Report on Form 10−K for the year ended December 31, 2020.

Submitted by the Compensation Committee of the Board of Directors:

G. Rainey Williams, Jr. (Chairman)

F. Ford Drummond

Joseph Ford

COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION

Messrs. Drummond, Ford and Williams currently serve on the Compensation Committee.  None of these individuals is or has been an officer or associate of the Company, or had any relationship with the Company required to be disclosed under “Transactions with Related Persons.”  No executive officer of the Company is, or was during 2020, a member of the board of directors or compensation committee (or other committee serving an equivalent function) of another company that has, or had during 2020 an executive officer serving as a member of our Board or Compensation Committee.

AUDIT COMMITTEE REPORT

The following report is for the Audit Committee’s activities regarding oversight of the Company’s financial reporting and auditing process for fiscal year 2020.

Members of the Audit Committee in 2020 were Joseph Ford, William Scott Martin, Robin Roberson and Gregory G. Wedel (Chairman). All of the Audit Committee members are “independent directors” as defined in the Marketplace Rules of The NASDAQ Global Market. Mr. Wedel has been designated as the audit committee financial expert by the Board. The Board has adopted an Audit Committee Charter, a copy of which is available on the Company’s website under Investor Relations. The composition of the Audit Committee, the attributes of its members and the responsibilities of the Audit Committee, as reflected in its charter, are intended to be in accordance with applicable requirements for corporate audit committees.

As described more fully in its charter, the purpose of the Audit Committee is to assist the Board in its general oversight of the Company’s financial reporting, internal control and audit functions. Management is responsible for the preparation, presentation and integrity of the Company’s financial statements, accounting and financial reporting principles, internal controls and procedures designed to ensure compliance with accounting standards, applicable laws and regulations. The Company’s independent registered public accounting firm is responsible for expressing an opinion on the conformity of the Company’s audited financial statements to generally accepted accounting principles.

The Audit Committee is not intended to duplicate or to certify the activities of management and the independent registered public accounting firm, nor can the Audit Committee certify that the independent registered public accounting firm is “independent” under applicable rules. The Audit Committee serves a board-level oversight role, in which it provides advice, counsel and direction to management and the independent registered public accounting firm on the basis of the information it receives, discussions with management and the auditor, and the experience of the Audit Committee’s members in business, financial and accounting matters.

Among other matters, the Audit Committee monitors the activities and performance of the Company’s internal auditors and independent registered public accounting firm, including the audit scope, external audit fees, auditor independence matters and the extent to which the independent registered public accounting firm may be retained to perform non-audit services. The Audit Committee and the Board have ultimate authority and responsibility to select, evaluate and, when appropriate, replace the Company’s independent registered public accounting firm. The Audit Committee also reviews the results of the internal and external audit work with regard to the adequacy and appropriateness of the Company’s financial, accounting and internal controls.  Management’s and the independent registered public accounting firm’s presentations to, and discussions with, the Audit Committee also cover various topics and events that may have significant financial impact or are the subject of discussions between management and the independent registered public accounting firm.  In addition, the Audit Committee generally oversees the Company’s internal compliance programs.

The Audit Committee has reviewed and discussed the consolidated financial statements with management and the independent registered public accounting firm. Management represented to the Audit Committee that the Company’s consolidated financial statements were prepared in accordance with generally accepted accounting principles, and the independent registered public accounting firm represented

22


that its presentations to the Audit Committee included the matters required to be discussed with the independent registered public accounting firm by the Public Company Accounting Oversight Board and the Securities and Exchange Commission.

The Company’s independent registered public accounting firm also provided the Audit Committee with the formal written statement and the letter required by applicable requirements of the Public Company Accounting Oversight Board regarding the independent accountant’s communications with the audit committee concerning independence, and has discussed with the independent accountant the independent accountant’s independence. The Audit Committee discussed with the auditors any relationships that may have an impact on their objectivity and independence and satisfied itself as to the auditors’ independence.

Following the Audit Committee’s discussions with management and the independent registered public accounting firm, the Audit Committee recommended that the Board of Directors include the audited consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

Submitted by the Audit Committee of the Board of Directors:

Gregory G. Wedel (Chairman)

Joseph Ford

William Scott Martin

Robin Roberson

TRANSACTIONS WITH RELATED PERSONS

BancFirst and Pegasus have made loans in the ordinary course of business to certain directors and executive officers of the Company and to certain affiliates of these directors and executive officers.  None of these loans outstanding are classified as nonaccrual, past due, restructured or potential problem loans. All such loans were made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable loans made to persons not related to the Company, and did not involve more than the normal risk of collectability or present other unfavorable features.

The Company has adopted written policies to implement the requirements of Regulation O of the Federal Reserve Board, which restricts the extension of credit to directors and executive officers and their family members and other related interests.  Under these policies, extensions of credit that exceed regulatory thresholds must be approved by the Board of Directors of BancFirst. All other transactions involving the Company in which a director or executive officer or immediate family member may have a direct or indirect material interest are required to be approved by the Audit Committee.

A son of David E. Rainbolt, Executive Chairman, is employed by the Company’s commercial property and casualty insurance agency subsidiary as a licensed agent. His total compensation for 2020, which is based on a standard commission schedule, was $343,533.  Since it is solely commission-based, this compensation will vary from year to year.

23


MANAGEMENT

Information with respect to our executive officers (including certain executive officers of BancFirst and Pegasus, our subsidiary banks) as of April 5, 2021 is set forth below.  Each officer serves a term of office of one year or until the election and qualification of his or her successor.

Name

 

 

Age

 

 

Executive

Officer

Since

 

Position

David E. Rainbolt

 

65

 

 

1984

 

Executive Chairman; BancFirst Corporation and BancFirst

David R. Harlow

 

58

 

 

1999

 

President and Chief Executive Officer, BancFirst Corporation

Darryl W. Schmidt

 

58

 

 

2002

 

President and Chief Executive Officer, BancFirst

Dennis L. Brand

 

73

 

 

1992

 

Vice Chairman

James R. Daniel

 

81

 

 

1997

 

Vice Chairman

William O. Johnstone

 

73

 

 

1996

 

Vice Chairman

Scott Copeland

 

56

 

 

1992

 

Executive Vice President and Head of Operations, BancFirst

Roy C. Ferguson

 

74

 

 

1992

 

Executive Vice President and Chief Credit Officer, BancFirst

Randy Foraker

 

65

 

 

1987

 

Executive Vice President, Chief Risk Officer and Secretary

Kelly Foster

 

52

 

 

1998

 

Executive Vice President and Chief Compliance Officer, BancFirst

D. Jay Hannah

 

65

 

 

1984

 

Executive Vice President of Financial Services, BancFirst

Kevin Lawrence

 

42

 

 

2013

 

Executive Vice President, Chief Financial Officer and Treasurer

Robert M. Neville

 

65

 

 

1986

 

Executive Vice President of Investments, BancFirst

Kendal W. Starks

 

67

 

 

1986

 

Executive Vice President and Director of Community Banking, BancFirst

David Westman

 

65

 

 

2006

 

Executive Vice President and Chief Technology Officer, BancFirst

Greg Diehl

 

51

 

 

2020

 

Senior Vice President and Chief Internal Auditor, BancFirst

Brian Pierson

 

65

 

 

2020

 

Senior Vice President and Assistant Secretary

Dara Wanzer

 

49

 

 

2017

 

Senior Vice President of Human Resources, BancFirst

Jennifer Weast

 

57

 

 

1995

 

Senior Vice President and Controller

Joe R. Goyne

 

75

 

 

2019

 

Chairman and Chief Executive Officer, Pegasus

Harry M. Smith

 

54

 

 

2019

 

President, Pegasus

John Anderson

 

65

 

 

2011

 

Regional Executive, BancFirst

John Barton

 

66

 

 

2017

 

Regional Executive, BancFirst

Mark Brace

 

62

 

 

2019

 

Regional Executive, BancFirst

Karen James

 

65

 

 

1984

 

Regional Executive, BancFirst

Marion McMillan

 

68

 

 

1998

 

Regional Executive, BancFirst

Jim Pratt

 

64

 

 

2019

 

Regional Executive, BancFirst

Harvey G. Robinson

 

62

 

 

1997

 

Regional Executive, BancFirst

John Slay

 

56

 

 

2018

 

Regional Executive, BancFirst

Each of the above-named executive officers has been employed by the Company for at least the last five years, with the exceptions of Joe R. Goyne, Harry M. Smith and Dara Wanzer. Mr. Goyne and Mr. Smith joined the Company in 2019 through the acquisition of Pegasus. Prior to such date and at least four years preceding their employment with the Company, Mr. Goyne was Chairman and Chief Executive Officer of Pegasus and Mr. Smith was President of Pegasus. Dara Wanzer joined the Company in 2017. Prior to such date and for at least four years preceding her employment with the Company, Ms. Wanzer was legal counsel for Integris Health, Inc., Oklahoma City, Oklahoma.

EXECUTIVE COMPENSATION

Throughout this section, unless the context indicates otherwise, when we use the terms “we,” “our” or “us,” we are referring to BancFirst Corporation and its subsidiaries, BancFirst and Pegasus.

Compensation Discussion and Analysis

This Compensation Discussion and Analysis describes the compensation for the named executive officers in the Summary Compensation Table and for our executive officers generally.  SEC regulations require us to include our Chief Executive Officer, David R. Harlow (CEO), and our Chief Financial Officer, Kevin Lawrence (CFO), as named executive officers.  In addition, these regulations require us to include the three most highly compensated executive officers in 2020 other than the CEO and CFO.  In addition to Messrs. Harlow

24


and Lawrence, our named executive officers are David E. Rainbolt, our Executive Chairman, Dennis L. Brand, a Vice Chairman, and Darryl W. Schmidt, the CEO of our subsidiary bank, BancFirst.

Objectives of our Compensation Program

Overview

Our primary mission is to create long-term value for our shareholders consistent with our commitment to maintain the safety and soundness of the Company, BancFirst and Pegasus. To accomplish this, we believe that we must provide competitive salaries and appropriate incentives to achieve long-term shareholder return. Our executive compensation practices are designed to achieve four primary objectives:

attract and retain qualified executives who will lead us and inspire superior performance; 

provide incentives for achievement of corporate goals and individual performance; 

provide incentives for achievement of long-term shareholder return; and 

align the interests of management and employees with those of the shareholders to encourage continuing increases in shareholder value.

Our goal is to effectively balance base salaries with short-term incentive compensation that is performance-based, and long-term compensation awards that are commensurate with an officer’s individual management responsibilities and potential for future contribution to corporate objectives. The portion of total compensation that is based on corporate performance and long-term shareholder return increases as an executive’s responsibilities increase.

The Compensation Committee of our Board is responsible for reviewing and recommending to the full Board of Directors for approval, our overall compensation and benefit programs in consultation with David E. Rainbolt, our Executive Chairman, and for determining the compensation of David R. Harlow, the Chief Executive Officer of BancFirst Corporation, and Darryl W. Schmidt, the Chief Executive Officer of our subsidiary bank, BancFirst. The Executive Chairman makes recommendations to the committee concerning his own compensation, but the Executive Chairman does not participate in the deliberations or decisions of the Compensation Committee concerning his compensation. Messrs. Harlow or Schmidt determines the compensation, including salary, performance-based incentive pay and other awards, for other executive officers, subject to the review of the Compensation Committee. The Compensation Committee currently consists of three directors, F. Ford Drummond, Joseph Ford and G. Rainey Williams, Jr. (Chairman), all of whom are independent under applicable NASDAQ and SEC standards.

Our Compensation Committee relies on various factors when reviewing and evaluating our executive compensation policies, the performance of our named executive officers and the establishment of appropriate compensation levels and programs for such officers. These factors include an executive’s individual performance and contributions to our strategic objectives, recommendations from the Executive Chairman, internal pay equity and the results of our 2020 “say-on-pay” vote, in which the advisory vote on our executive compensation program was approved with approximately 95% of the votes cast in favor of the resolution. The Compensation Committee also considers the performance of the management team as a group, the Executive Chairman’s assessment of other executives’ individual performance and the Executive Chairman’s compensation recommendations with respect to the other executive officers as part of its process. The Compensation Committee considered all of these factors, including the 2020 “say-on-pay” vote result, as it evaluated whether any changes to our executive compensation program were warranted and it determined that no changes were warranted at that time.

Executive Participation in Committee Discussions

The executive officers who participate in the Compensation Committee’s compensation-setting process are the Executive Chairman and the Senior Vice President for Human Resources. Executive participation is meant to provide the Compensation Committee with input regarding our compensation philosophy, process and decisions. In addition to providing factual information such as Company-wide performance on relevant measures, these executives articulate management’s views on current compensation programs and processes, recommend relevant performance measures to be used for future awards, and otherwise supply information to assist the Compensation Committee. The Executive Chairman also provides information about individual performance assessments for executive officers, and expresses to the Compensation Committee his view on the appropriate levels of compensation for such executive officers for the ensuing year. Additionally, the Executive Chairman discusses and reviews the alignment between our risk management policies and practices and all of our employee incentive compensation arrangements, identifying and making efforts to limit any features in such compensation arrangements that might lead to employees taking unnecessary or excessive risks that could threaten our value.

25


These two executives participate in Compensation Committee discussions purely in an informational and advisory capacity, but have no vote in the committee’s decision-making process. No executive officer other than the Executive Chairman and Senior Vice President for Human Resources attends those portions of Compensation Committee meetings during which the performance of the executive officers is evaluated or their compensation is being determined.

Executive Compensation Program

Our compensation structure primarily consists of the following components:

base salary;

performance-based incentive pay, which includes both profitability and risk management measurements;

long-term award(s)—including stock option grants, supplemental executive retirement agreements and survivor benefit agreements; and

benefits available to all employees, including a 401(k) plan and an employee stock ownership plan.

We consider market practices to achieve an overall compensation program that aims to provide a total compensation package for our executive officers that is generally competitive with the compensation paid to similarly situated executive and senior officers of comparable-sized financial institutions. We review the market practices by speaking to recruitment agencies and reviewing the data on financial institutions of similar size, growth potential and market area as reported in publicly available documents, such as proxy statements. We do not currently have a policy to recapture performance-based incentive pay or other compensation in the event that the metrics used to determine the compensation are later restated.

Base Salary

One of the objectives of our compensation program is to establish base salaries for executive officers that are competitive to those of comparable companies in our industry and our local market place. We believe that base salaries should be competitive to attract and retain talented senior management. We consult various sources to identify adequate and competitive base salary levels, including industry surveys, feedback from recruiters and information contained in publicly available documents. The base salary levels for David R. Harlow, the Chief Executive Officer of BancFirst Corporation, and Darryl W. Schmidt, the Chief Executive Officer of our subsidiary bank, BancFirst (together, the “CEOs”), are established annually by the Executive Chairman and submitted to the Compensation Committee for evaluation and recommendation to the full Board for approval. The Compensation Committee’s evaluation of the CEOs’ base salaries was based on the factors above, including the current financial performance of BancFirst as measured by earnings, asset growth, and overall financial soundness. Base salary for the other executive officers is established by Messrs. Harlow or Schmidt, and is submitted for review by the Compensation Committee. In setting base salaries, Messrs. Harlow or Schmidt consider the seniority and level of responsibility of each executive officer, taking into account competitive market compensation paid by other companies as described above. Salaries for executive officers are reviewed on an annual basis as well as at the time of a promotion or other change in level of responsibilities. Increases in base salary are based on the evaluation of factors such as the individual’s level of responsibility, performance and level of compensation. The salaries paid during fiscal year 2020 to our named executive officers are shown in the Summary Compensation Table.

Annual Performance-Based Incentive Pay

We believe that the payment of performance-based incentive compensation based on business and personal goals is important to focus our executive officers on the achievement of short-term corporate goals. Accordingly, all of our executive officers are eligible to receive an annual cash amount based on our performance-based incentive program. The performance-based incentive program is designed to reward our executive officers for the attainment of short-term business and/or personal performance goals that are established at the beginning of each fiscal year, and can be in amounts ranging from 10% to 25% of the executive officer’s base salary. Performance-based incentive compensation for the CEOs is recommended by our Executive Chairman, subject to review and approval by the Compensation Committee. Performance-based incentive compensation for our other executive officers is established by Messrs. Harlow or Schmidt, subject to review and approval by the Compensation Committee.  Messrs. Harlow or Schmidt and the Compensation Committee use judgment and discretion taking into account the business and economic environment, our overall performance, budgetary considerations, each executive officer’s performance in relation to the goals set for him or her, competitive factors within the industry, and retention of key executives.

Annual incentive payments under the plan for a particular year with respect to executive officers who are in bank senior management are based on a combination of financial and individual performance criteria established before the beginning of the year.  Such performance criteria generally will vary depending on the executive officer’s authority. Thus, for example, for those executive officers

26


having authority or responsibility over the entire company, the performance criteria includes the attainment, on a Company-wide basis, of budgeted earnings, budgeted levels of classified assets, results of our internal operational audits and results of regulatory compliance audits.  For executive officers having line authority over a particular group of branches, such as Regional Executives, the performance criteria includes the attainment of these same objectives, but only with respect to the particular branches over which the executive officer has responsibility. For executive officers having responsibility over various corporate administrative functions, annual incentive payments are based primarily on the attainment of individual performance objectives negotiated at the beginning of the year. Attainment of individual performance objectives is based on a subjective evaluation of each individual officer’s performance.  An executive officer’s potential cash incentive payment depends upon two factors: (x) the executive’s position, which establishes a maximum cash incentive award as a percent of base salary and (y) the extent to which the performance criteria have been achieved, with the concurrence of Messrs. Harlow or Schmidt and the Compensation Committee. Whenever the specified performance criteria are not fully met, the Executive Chairman and the Compensation Committee determine the amount of incentive compensation paid, if any, based on their subjective evaluation of the extent to which the criteria were met and other factors. The Compensation Committee conducts an evaluation of the CEOs’ individual performances and determines the appropriate amount of performance-based incentive pay.  

The payment of performance-based incentive compensation generally occurs in December of each year in respect of achievements of the fiscal year then ending. For 2020, each of the named executive officers was eligible for performance-based incentive compensation from 10% to 20% of the respective executive’s base salary. As discussed in detail below, each of the named executive officers received the maximum performance-based incentive compensation totaling 20% of his base salary.

Mr. Harlow

For 2020, Mr. Harlow was eligible for a bonus of up to 20% of his base salary, based upon budgeted pre-tax income and budgeted classified assets for our subsidiary, BancFirst, and the results of the internal audits of BancFirst’s branches, all determined on a Company-wide basis. Each of these factors was weighted, as indicated in the following table:

Objectives for 2020

 

 

Maximum Percentage
of Base Salary

 

 

2020 Goal

 

 

Actual 2020

Performance

 

Budgeted pre-tax income for BancFirst

 

 

9.00%

 

 

$

177,028,000

 

 

$

164,405,000

 

Budgeted classified assets for BancFirst

 

 

9.00%

 

 

 

(1

)

 

 

(1

)

Internal audit

 

 

2.00%

 

 

 

(2

)

 

 

(2

)

(1)

Federal and state banking regulations prohibit us from disclosing information contained in regulatory agency examination reports, such as amounts of classified assets.

(2)

Branches are assigned internal scores from 1 to 5, with 1 being the best, based on results of regulatory compliance audits as well as management’s subjective assessment of each branch’s performance in certain other categories, such as information technology, trust and insurance services. The goal is to receive an average score between 1 and 1.50. The maximum incentive compensation of 2% available for the internal audit metric was based on an average score of 1.37, calculated by dividing the total of the scores for all branches by the total number of bank branches.

The budgeted pretax income goal was not attained. The budgeted classified assets goal and internal audit goal were fully attained. Accordingly, the Executive Chairman recommended that the Compensation Committee adopt his determination that Mr. Harlow be paid a partial attainment bonus amount, which resulted in Mr. Harlow receiving a total cash incentive bonus for 2020 equal to 15.5% of his base salary.

Mr. Schmidt

For 2020, Mr. Schmidt was eligible for a bonus of up to 20% of his base salary, based upon budgeted pre-tax income and budgeted classified assets for our subsidiary, BancFirst, and the results of the internal audits of the BancFirst’s branches, all determined on a Company-wide basis. Each of these factors was weighted, as indicated in the following table:

Objectives for 2020

 

 

Maximum Percentage
of Base Salary

 

 

2020 Goal

 

 

Actual 2020

Performance

 

Budgeted pre-tax income for BancFirst

 

 

9.00%

 

 

$

177,028,000

 

 

$

164,405,000

 

Budgeted classified assets for BancFirst

 

 

9.00%

 

 

 

(1

)

 

 

(1

)

Internal audit

 

 

2.00%

 

 

 

(2

)

 

 

(2

)

(1)

Federal and state banking regulations prohibit us from disclosing information contained in regulatory agency examination reports, such as amounts of classified assets.

(2)

Branches are assigned internal scores from 1 to 5, with 1 being the best, based on results of regulatory compliance audits as well as management’s subjective assessment of each branch’s performance in certain other categories, such as information technology,

27


trust and insurance services. The goal is to receive an average score between 1 and 1.50. The maximum incentive compensation of 2% available for the internal audit metric was based on an average score of 1.37, calculated by dividing the total of the scores for all branches by the total number of bank branches.

The budgeted pretax income goal was not attained. The budgeted classified assets goal and internal audit goal were fully attained. Accordingly, the Executive Chairman recommended that the Compensation Committee adopt his determination that Mr. Schmidt be paid a partial attainment bonus amount, which resulted in Mr. Schmidt receiving a total cash incentive bonus for 2020 equal to 15.5% of his base salary.

Mr. Lawrence

For 2020, Mr. Lawrence was eligible for a bonus of up to 20% of his base salary.  The 2020 performance objectives for Mr. Lawrence included overall financial performance, strategic and operational objectives in connection with Mr. Lawrence’s role throughout the year as Chief Financial Officer. Mr. Lawrence’s performance objectives for 2020 included the following:

Ensuring the integrity and timeliness of financial and regulatory reporting;

Continuing to monitor actual financial performance as compared to budget;

Overseeing and monitoring our tax credit investments;

Evaluating and appropriately managing finance and accounting organizational structure, systems, workflow and staffing requirements;

Managing the budgeting and forecasting process;

Overseeing our capital plan, including monitoring capital levels and recommending appropriate adjustments as needed; and

Financial Performance.

In reviewing Mr. Lawrence’s attainment of those objectives, Mr. Harlow made a subjective determination that Mr. Lawrence was generally successful in achieving the objectives set for him. However, considering, that the Company’s pretax income goal was not attained, Mr. Harlow recommended that the Compensation Committee adopt his determination that Mr. Lawrence be paid a partial attainment bonus, which resulted in Mr. Lawrence receiving a total cash incentive bonus for 2020 equal to 17.5% of his base salary.

Mr. Rainbolt

For 2020, Mr. Rainbolt was eligible for a bonus up to 20% of his base salary, based upon budgeted pre-tax income and budgeted classified assets for our subsidiary, BancFirst, and the results of the internal audits of the BancFirst’s branches, all determined on a Company-wide basis. Each of these factors was weighted, as indicated in the following table:

Objectives for 2020

 

 

Maximum Percentage
of Base Salary

 

 

2020 Goal

 

 

Actual 2020

Performance

 

Budgeted pre-tax income for BancFirst

 

 

9.00%

 

 

$

177,028,000

 

 

$

164,405,000

 

Budgeted classified assets for BancFirst

 

 

9.00%

 

 

 

(1

)

 

 

(1

)

Internal audit

 

 

2.00%

 

 

 

(2

)

 

 

(2

)

(1)

Federal and state banking regulations prohibit us from disclosing information contained in regulatory agency examination reports, such as amounts of classified assets.

(2)

Branches are assigned internal scores from 1 to 5, with 1 being the best, based on results of regulatory compliance audits as well as management’s subjective assessment of each branch’s performance in certain other categories, such as information technology, trust and insurance services. The goal is to receive an average score between 1 and 1.50. The maximum incentive compensation of 2% available for the internal audit metric was based on an average score of 1.37, calculated by dividing the total of the scores for all branches by the total number of bank branches.

The budgeted pretax income goal was not attained. The budgeted classified assets goal and internal audit goal were fully attained. Accordingly, the Executive Chairman recommended that the Compensation Committee adopt his determination that he be paid a partial attainment bonus amount, which resulted in Mr. Rainbolt receiving a total cash incentive bonus for 2020 equal to 15.5% of his base salary.

28


Mr. Brand

For 2020, Mr. Brand was eligible for a bonus up to 20% of his base salary, based upon budgeted pre-tax income and budgeted classified assets for our subsidiary, BancFirst, and the results of the internal audit of the BancFirst’s branches, all determined on a Company-wide basis.  Each of these factors was weighted, as indicated in the following table: 

Objectives for 2020

 

 

Maximum Percentage
of Base Salary

 

 

2020 Goal

 

 

Actual 2020

Performance

 

Budgeted pre-tax income for BancFirst

 

 

9.00%

 

 

$

177,028,000

 

 

$

164,405,000

 

Budgeted classified assets for BancFirst

 

 

9.00%

 

 

 

(1

)

 

 

(1

)

Internal audit

 

 

2.00%

 

 

 

(2

)

 

 

(2

)

(1)

Federal and state banking regulations prohibit us from disclosing information contained in regulatory agency examination reports, such as amounts of classified assets.

(2)

Branches are assigned internal scores from 1 to 5, with 1 being the best, based on results of regulatory compliance audits as well as management’s subjective assessment of each branch’s performance in certain other categories, such as information technology, trust and insurance services.  The goal is to receive an average score between 1 and 1.50. The maximum incentive compensation of 2% available for the internal audit metric was based on an average score of 1.37, calculated by dividing the total of the scores for all branches by the total number of bank branches.

The budgeted pretax income goal was not attained. The budgeted classified assets goal and internal audit goal were fully attained. Accordingly, the Executive Chairman recommended that the Compensation Committee adopt his determination that Mr. Brand be paid a partial attainment bonus amount, which resulted in Mr. Brand receiving a total cash incentive bonus for 2020 equal to 17.5% of his base salary.

Long-Term Awards

Stock Option Grants

Executive officers receive equity compensation awards in the form of nonqualified incentive stock options under the Employee Plan. The stock options are designed to align the interests of the executive officers with the shareholders’ long-term interests by providing them with equity awards that generally are exercisable beginning four years from the date of grant at the rate of 25% per year for four years. Historically, the Company has not granted equity awards to the same degree as its peers; typically, option grants have been made either as an employment incentive in connection with the Company’s efforts to employ an executive officer, as a retention device or to focus executive officers on the achievement of long-term corporate goals. The Employee Plan was adopted by the Board in 1986 and has been amended several times since its adoption to increase the number of shares issuable under the plan and to extend the term of the plan, which currently extends to December 31, 2024. The Company does not have stock ownership guidelines for its directors or executive officers. Given the Executive Chairman’s significant existing stock ownership in the Company, he has recommended to the Compensation Committee that he not be granted any additional stock options. Awards granted to our other executive officers are recommended by our Executive Committee and ratified by the full Board.

All stock options granted under the Employee Plan are made at the market price at the time of the award. The Company has never granted stock options with an exercise price that is less than the closing price of the Company’s common stock as reported by NASDAQ on the grant date, nor has it granted stock options which were priced on a date other than the grant date. The long-term incentive award information for the Company’s named executive officers during fiscal year 2020 is included in “— Executive Compensation—Option Grants in Last Fiscal Year” and additional information on the option awards is shown in “—Executive Compensation—Outstanding Equity Awards at Fiscal Year-End.”

Supplemental Executive Retirement Agreements

In 2007, the Company entered into supplemental retirement agreements with a number of the Company’s executive officers designated by the Executive Chairman. These agreements seek to encourage the executive officers who are parties to such agreements to remain employed with the Company. Under the terms of the agreements, which were approved by the Compensation Committee, the signatory executive officer will receive a specified annual benefit paid in monthly installments for a specified number of years, typically 10 years, after retirement at age 65. If the executive officer���s employment is terminated by the Company for cause or by reason of voluntary early retirement, the executive officer will not receive any benefits under the agreement. The agreements also provide for specified benefits (generally, the discounted present value of the income stream) in the event of a change-in-control or involuntary early retirement. For details regarding the terms and payments under the supplemental retirement agreements for David R. Harlow and Darryl W. Schmidt, the only named executive officers receiving such a benefit, see “—Executive Compensation—Potential Payments on Termination or Change-in-Control.”

29


Survivor Benefit Agreements

The Company has also entered into survivor benefit agreements with a number of the Company’s executive officers designated by the Executive Chairman. In connection with these agreements, the Company purchased life insurance policies with respect to the relevant individuals. Under these agreements, the Company owns the insurance policies, is entitled to the cash value of the policies and is responsible for paying the associated premiums. Upon the executive officer’s death while still employed with the Company, a beneficiary selected by the executive officer is entitled to a specified amount of the death benefit under the policy. The survivor benefit agreement and any benefit from it terminates upon the executive officer’s termination of employment for any reason, including retirement or disability. David R. Harlow and Darryl W. Schmidt are the only named executive officers who participated in this benefit. The value of the benefit is included as one of the components of compensation reported in “Summary Compensation Table – All Other Compensation.”

Benefits Available to All Employees

The Company maintains a 401(k) employee savings and retirement plan, as well as an employee stock ownership plan (“ESOP”), both of which are broad-based plans covering all full-time employees, including the Company’s executive officers, who have attained the age of 21 years and who have completed six months of employment during the year. The Company’s matching contribution to the 401(k) plan equals 50% of the first 6% of pay that is contributed by a participating employee to the plan.  Benefits under the ESOP are based solely on the amount contributed by the Company, which is used to purchase the Company’s common stock. A participant’s allocation is the contribution percentage approved by the Board multiplied by the participant’s eligible compensation for that year. The total amount contributed by the Company to the ESOP for 2020 was $3,689,000, and the total amount contributed by the Company to the 401(k) plan for 2020 was $2,986,000. The contribution to the ESOP is based primarily on profits of the Company, but any contribution to the ESOP is within the sole discretion of the Board and there are no specific performance measures set forth in the ESOP. The Company’s contribution to these plans in 2020 is included as one of the components of compensation reported in “Summary Compensation Table – All Other Compensation.”

The Company offers group health and dental benefits to all full-time employees. A specified amount of the premium is paid by the Company for all participating employees, and the employees pay the additional amount of the premium for their respective level of coverage. The Company also provides fully-paid group term life insurance and long-term disability insurance to all full-time employees. The benefits under these group plans are based in part on the annual salaries of the employees.

Perquisites

The Company generally limits perquisites that it makes available to executive officers to those that are available to all employees or are required for their efficient conduct of Company business. Three of the five named executive officers are furnished Company-owned automobiles. Certain of the named executive officers and other executive officers are also provided with club memberships and are reimbursed for cell phones.  Pursuant to the Company’s Aircraft Policy, the named executive officers and other management employees are provided use of the Company’s aircraft for business purposes.  Generally, no named executive officer is provided use of the Company aircraft for personal travel.  Pursuant to the Aircraft Policy, any such personal use is fully charged against the individual, at a rate of $650 per flight hour plus pilot expenses.  The Company aircraft is owned jointly by BancFirst and an entity affiliated with H.E. Rainbolt and David E. Rainbolt, whose personal use of the Company aircraft is governed by the terms of a Joint Ownership Agreement.  Information on the perquisites received by the named executive officers is included in “Summary Compensation Table – All Other Compensation.”

Employment Arrangements

The Company does not have written employment arrangements with any of the named executive officers or any other executive officer.

Deductibility of Named Executive Officers Compensation

The qualifying compensation regulations issued by the Internal Revenue Service under Internal Revenue Code section 162(m) provide that no deduction is allowed for applicable employee remuneration paid by a publicly held corporation to a covered employee to the extent that the remuneration exceeds $1.0 million for the applicable taxable year, unless specified conditions are satisfied. The fair value of option awards listed in the summary compensation table does not count towards the $1.0 million remuneration. Proceeds from the exercise of options that were granted on or after June 24, 2011 count towards the $1 million remuneration. Currently, remuneration is not expected to exceed $1.0 million for any employee.  Therefore, the Company does not expect that compensation will be affected by the qualifying compensation regulations.

30


Summary Compensation Table

The following table sets forth information relating to all compensation awarded to, earned by or paid to the Company’s principal executive officer, principal financial officer, and three most highly compensated officers other than the principal executive officer and principal financial officer, collectively referred to as the named executive officers in this proxy statement, for services rendered in all capacities to the Company during the last three fiscal years ended December 31, 2020.

Summary Compensation Table

Name and Principal Position

 

Year

 

Salary

($)

 

 

Performance-based

Incentive Pay

($)

 

Option Awards

($)

 

 

Non-qualified

Deferred Compensation Earnings

($)

 

All Other Compensation

($) (2)

 

Total

($)

 

David R. Harlow

 

2020

 

$

600,000

 

 

$

93,000

 

$

686,365

 

 

$

42,889

(1)

$

28,855

(3)(4)

$

1,451,109

 

CEO

 

2019

 

$

535,000

 

 

$

107,000

 

 

 

 

$

39,093

(1)

$

30,189

(3)(4)

$

711,282

 

 

 

2018

 

$

500,000

 

 

$

100,000

 

 

 

 

$

35,594

(1)

$

28,211

(3)(4)

$

663,805

 

Kevin Lawrence

 

2020

 

$

320,000

 

 

$

56,000

 

 

 

 

 

 

$

17,730

 

$

393,730

 

Executive Vice President

 

2019

 

$

300,000

 

 

$

60,000

 

 

 

 

 

 

$

21,060

 

$

381,060

 

and CFO

 

2018

 

$

275,000

 

 

$

55,000

 

 

 

 

 

 

$

19,992

 

$

349,992

 

David E. Rainbolt

 

2020

 

$

400,000

 

 

$

62,000

 

 

 

 

 

 

$

47,653

(3)

$

509,653

 

Executive Chairman

 

2019

 

$

400,000

 

 

$

80,000

 

 

 

 

 

 

$

47,458

(3)

$

527,458

 

 

 

2018

 

$

400,000

 

 

$

80,000

 

 

 

 

 

 

$

43,428

(3)

$

523,428

 

Dennis L. Brand

 

2020

 

$

375,000

 

 

$

65,625

 

 

 

 

 

 

$

28,914

(3)(4)

$

469,539

 

Chairman of the Executive

 

2019

 

$

375,000

 

 

$

75,000

 

 

 

 

 

 

$

33,384

(3)(4)

$

483,384

 

Committee

 

2018

 

$

400,000

 

 

$

80,000

 

 

 

 

 

 

$

32,249

(3)(4)

$

512,249

 

Darryl W. Schmidt

 

2020

 

$

600,000

 

 

$

93,000

 

$

686,365

 

 

$

42,511

(1)

$

24,775

(3)(4)

$

1,446,651

 

President and

 

2019

 

$

535,000

 

 

$

107,000

 

 

 

 

$

38,748

(1)

$

27,885

(3)(4)

$

708,633

 

CEO of BancFirst

 

2018

 

$

500,000

 

 

$

100,000

 

 

 

 

$

35,280

(1)

$

26,120

(3)(4)

$

661,400

 

(1)

Represents the change in the present value of accumulated benefit payable to Messrs. Harlow and Schmidt, respectively, under the Supplemental Executive Retirement Agreement dated November 15, 2006.

(2)

Includes for each of the named executive officers contributions by the Company to the Retirement Plans and the values attributed to certain life insurance benefits.  The amounts of contributions to the Retirement Plans for 2020 for each of the named executive officers were: David R. Harlow - $17,670; Kevin Lawrence - $17,670; David E. Rainbolt - $17,670; Dennis L. Brand - $17,670; Darryl W. Schmidt - $17,670.

(3)

Includes directors’ fees paid to the respective named executive officers.

(4)

Includes the values attributed to the personal use of Company owned automobiles provided to the respective named executive officers (as calculated in accordance with Internal Revenue Service guidelines).

31


Grants of Plan-Based Awards

The table below sets forth the information for stock option grants made to the named executive officers during 2020.

Option Awards

 

Name

 

Grant Date

 

 

 

All Other Option

Awards: Number of Securities Underlying Options

 

 

Exercise of Base Price of Option Awards ($)

 

 

Grant Date Fair Value of Stock and Option Awards

 

David R. Harlow

 

 

2/28/2020

 

 

 

65,000

 

 

$

51.30

 

 

$

686,365

 

Darryl W. Schmidt

 

 

2/28/2020

 

 

 

65,000

 

 

$

51.30

 

 

$

686,365

 

Outstanding Equity Awards at Fiscal Year-End

The following table includes certain information with respect to the value of all unexercised options previously awarded to the named executive officers at December 31, 2020.

Option Awards

 

Name

 

Number of Securities

Underlying Unexercised Options

(#) Exercisable

 

 

Number of Securities

Underlying Unexercised Options

(#) Unexercisable

 

 

Option

Exercise

Price ($)

 

 

Option

Expiration Date

 

David R. Harlow

 

 

 

 

 

65,000(1)

 

 

$

51.30

 

 

 

2/28/2035

 

Kevin Lawrence

 

 

34,250

 

 

 

 

 

$

21.43

 

 

 

5/31/2028

 

 

 

 

25,000

 

 

 

25,000(2)

 

 

$

32.30

 

 

 

6/19/2030

 

David E. Rainbolt

 

 

 

 

 

 

 

 

 

 

 

Dennis L. Brand

 

 

 

 

 

 

 

 

 

 

Darryl W. Schmidt

 

 

 

 

 

65,000(1)

 

 

$

51.30

 

 

2/28/2035

 

(1)

These options will vest at various dates through February 28, 2027.

(2)

These options will vest at various dates through June 19, 2022.

Option Exercises

The following table shows the number of shares acquired and the value realized on the exercise of stock options during 2020 for each of the Company’s named executive officers.

Option Awards

 

Name

 

Number of Shares

Acquired on Exercise

(#)

 

 

Value Realized

on Exercise

($)

 

David R. Harlow

 

 

20,000

 

 

$

734,980

 

Kevin Lawrence

 

 

2,500

 

 

$

90,175

 

David E. Rainbolt

 

 

 

 

 

 

Dennis L. Brand

 

 

 

 

 

 

Darryl W. Schmidt

 

 

 

 

 

 

32


Equity Compensation Plan Information

Information regarding stock-based compensation awards outstanding and available for future grants as of December 31, 2020 is presented in the table below. All of the Company’s stock-based compensation plans have been approved by the Company’s stockholders.

 

 

(a)

 

 

(b)

 

 

(c)

 

Plan Category

 

Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights

 

 

Weighted Average Exercise Price of Outstanding Options, Warrants and Rights

 

 

Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column(a))

 

Equity compensation plans approved by

   security holders

 

1,491,358

 

 

$

33.03

 

 

 

242,443

 

Supplemental Retirement Benefits

The table below shows the present value of accumulated benefit payable to David R. Harlow and Darryl W. Schmidt under the Supplemental Executive Retirement Agreement dated November 15, 2006. None of the other named executive officers are covered by a supplemental retirement agreement. The number of years of credited service for Messrs. Harlow and Schmidt is their total years of service with the Company.  The present value of accumulated benefit payable to Messrs. Harlow and Schmidt was determined using a retirement age of 65 and a discount rate of 6%.

Name

 

Plan Name

 

Number of Years

of Credited Service

(#)

 

 

Present Value of

Accumulated Benefit

($)

 

 

Payments During

Last Fiscal Year

($)

 

David R. Harlow

 

Supplemental Executive Retirement Agreement

 

 

21.3

 

 

$

351,761

 

 

 

 

Darryl W. Schmidt

 

Supplemental Executive Retirement Agreement

 

 

17.6

 

 

$

348,636

 

 

 

 

Under the terms of the Supplemental Executive Retirement Agreement, if Messrs. Harlow or Schmidt remains continually employed with BancFirst until age 65, Mr. Harlow and Mr. Schmidt will be entitled to a supplemental retirement benefit of $100,000 per year for ten years, irrespective of whether they then retire or continue to be employed by BancFirst beyond age 65. If Messrs. Harlow or Schmidt dies during the ten-year period, their surviving spouse or other designated beneficiary will receive the remaining payments over the remainder of the ten-year period. A lump-sum distribution, equal to the discounted present value of the aggregate supplemental payments, is payable upon separation from service following a change of control of BancFirst or if Messrs. Harlow or Schmidt is terminated without cause between the ages of 59 and 65.  No benefits are payable under the agreement if Messrs. Harlow or Schmidt (i) ceases to be employed by BancFirst for any reason (other than death) prior to reaching age 59 or (ii) is terminated by BancFirst for “cause,” as such term is defined in the agreement, prior to reaching age 65. If Messrs. Harlow or Schmidt dies before age 65 while still employed with BancFirst, his surviving spouse or other designated beneficiary will receive a lump sum distribution equal to a percentage of the total lump sum amount of Messrs. Harlow or Schmidt’s supplemental retirement income, calculated on the percentage that the total number of months between the effective date of the agreement and the executive’s death represents the total months between the effective date of the agreement and the date the executive would have reached age 65. Messrs. Harlow or Schmidt will forfeit any non-distributed benefits payable under the agreement if he violates certain non-compete and confidentiality restrictions in the agreement.

Potential Payments upon Termination or Change-in-Control

Except for the Supplemental Executive Retirement Agreement of David R. Harlow and Darryl W. Schmidt described above, the Company has no agreements with any other named executive officer providing for potential payments upon termination of employment or a change-in-control of the Company.

Pay Ratio Disclosure

The SEC requires us to disclose the ratio of the annual total compensation of our CEO, David R. Harlow, to the median employee’s annual total compensation. As shown in the Summary Compensation Table, Mr. Harlow’s annual total compensation for 2020 was $1,451,109 and the median employee’s annual total compensation was $41,811. Based upon this information, the ratio of the annual total compensation of Mr. Harlow to the median employee was 35 to 1.

As permitted under the SEC rules, we are using the same median employee for our 2020 Pay Ratio as we used for our 2019 Pay Ratio. In identifying our median employee, we examined our entire employee population as of December 31, 2019. We calculated the ratio based on total employees of 1,948 at December 31, 2019, which compares to total employees of 2,036 at December 31, 2020. Our

33


median employee was determined by reviewing wages, tips and other compensation on payroll records for our employee population, as reported to the IRS on Form W-2.

The pay ratio identified above is a reasonable estimate calculated in a manner consistent with SEC rules. Pay ratios that are reported by our peers may not be directly comparable to ours because of differences in the composition of each company’s workforce, as well as the assumptions and methodologies used in calculating the pay ratio, as permitted by SEC rules.

DIRECTOR COMPENSATION

The Company provides the following elements of compensation for its non-employee directors, each of whom is also a director of BancFirst:

A retainer of $1,500 per quarter to each non-employee director for serving on the Board.

A retainer of $1,500 per month to each non-employee director for serving on the BancFirst Board of Directors.

A retainer of $1,500 per month to each member of the Audit Committee.

A retainer of $5,000 per quarter to the chairman of the Audit Committee.

A fee of $1,500 per meeting to each member of the Compensation Committee.

A fee of $12,500 per quarter to the Lead Independent Director.

A grant of 10,000 options to each non-employee director at the time of their initial appointment or election to the Board.

The Company pays employee directors each a retainer of $500 per quarter for their services as directors.

The option grants are provided under the Non-Employee Directors’ Plan and are exercisable at the rate of 25% per year beginning one year from the date of grant. If a director is terminated for cause, all options will be forfeited immediately. If a director ceases to be member of the Board for any other reason, unvested options will terminate and only previously vested options may be exercised for a period of 30 days following termination (or 12 months in the case of termination on account of death).

Non-employee directors can elect to defer all or any portion of their cash compensation through the Deferred Stock Compensation Plan.  Under the Deferred Stock Compensation Plan, directors of the Company and members of the community advisory boards of BancFirst may defer up to 100% of their Board fees. They are credited for each deferral with a number of stock units based on the current market price of the Company’s stock, which accumulate in an account until such time as the director or community board member terminates service as a Board member.  Shares of the Company’s common stock are then distributed to the terminating director or community board member based upon the number of stock units accumulated in his or her account.  Because stock units are not actual shares of the Company’s common stock, they do not have any voting rights.

Additionally, non-employee directors may be reimbursed for their expenses in connection with attending Board meetings.

34


The following table provides compensation information for the Company’s directors who served during fiscal 2020.

Director Compensation

 

 

Earned or

 

 

Stock

 

 

Option

 

 

All Other

 

 

 

 

 

 

 

Paid in Cash

 

 

Awards

 

 

Awards

 

 

Compensation

 

 

Total

 

Name

 

($)

 

 

($)(1)

 

 

($)(2)

 

 

($)

 

 

($)

 

C. L. Craig, Jr.

 

$

24,000

 

 

$

     11,130

 

 

 

 

 

 

$

35,130

 

F. Ford Drummond

 

$

27,000

 

 

$

10,066

(6)

 

 

 

$      12,000

(4)

 

$

49,066

 

Joseph Ford

 

 

 

$

46,195

 

 

 

 

 

 

$

     46,195

 

Joe R. Goyne

 

 

 

$

2,533

 

 

 

 

 

 

$

2,533

 

William O. Johnstone

 

$

2,000

 

 

 

 

 

 

 

 

$

2,000

 

Frank Keating

 

$

24,000

 

 

 

 

 

 

 

 

 

$

24,000

 

Bill G. Lance

 

 

 

 

$

25,054

 

 

 

 

 

 

$

25,054

 

Dave R. Lopez

 

$

22,500

 

 

$

1,878

 

 

 

 

 

 

$

24,378

 

William Scott Martin

 

$

31,875

 

 

 

 

 

 

 

 

 

$

31,875

 

Tom H. McCasland, III

 

 

 

$

66,106

(6)

 

 

 

 

 

$

66,106

 

Ronald J. Norick

 

$

24,000

 

 

 

 

 

 

 

 

$

24,000

 

H. E. Rainbolt

 

$

100,000

(5)

 

 

 

 

 

 

 

$

100,000

 

Laura J. Ratliff

 

 

 

 

 

 

 

$

18,000

(4)

 

$

18,000

 

Robin Roberson

 

$

25,500

 

 

$     17,647

 

 

 

 

 

 

$

43,147

 

Michael S. Samis (7)

 

$

21,000

 

 

 

 

 

 

 

 

$

21,000

 

Natalie Shirley

 

 

 

$

32,640

 

 

 

 

 

 

$

32,640

 

Michael K. Wallace

 

$

24,000

 

 

 

 

 

 

$

2,000

(3)

 

$

26,000

 

Gregory G. Wedel

 

 

 

$

70,898

 

 

 

 

 

 

$

70,898

 

G. Rainey Williams, Jr.

 

$

62,750

 

 

$

18,128

 

 

 

 

$

18,000

(4)

 

$

98,878

 

(1)

Represents the closing price of the Company’s common stock on each deferral date times the number of stock units allocated to the accounts of the respective participating directors for deferrals of fees under the Deferred Stock Compensation Plan and for additional stock units credited for the assumed reinvestment of dividends.  As of December 31, 2020, each of the participating directors had the following aggregate number of stock units accumulated in their deferral accounts: C. L. Craig, Jr. – 8,731; F. Ford Drummond – 2,354; Joseph Ford – 2,726; Joe R. Goyne –55; Bill G. Lance – 1,163; Dave R. Lopez – 318; Tom H. McCasland, III – 19,497; Robin Roberson – 1,129; Natalie Shirley – 7,114; Gregory G. Wedel – 7,880; G. Rainey Williams, Jr. – 4,425.

(2)

Represents the aggregate grant date fair value for awards of stock options granted during fiscal 2020, computed in accordance with ASC 718. These amounts reflect the grant date fair value, and do not represent the actual value that may be realized. As of December 31, 2020, each director had the following number of options outstanding:  F. Ford Drummond – 20,000; Joseph Ford – 10,000; Frank Keating – 20,000; Bill G. Lance – 10,000; Dave R. Lopez – 10,000; William Scott Martin – 10,000; Robin Roberson – 10,000; Natalie Shirley – 20,000; Michael K. Wallace – 20,000; Gregory G. Wedel – 20,000.

(3)

Consists of payments pursuant to a Consulting Agreement for serving as a Community Director.

(4)

Consists of payments for serving on BancFirst’s Senior Trust Committee. Ms. Ratliff is a nonvoting advisory director to the Board.

(5)

Mr. Rainbolt receives a fee for serving as Chairman Emeritus of the Board.

(6)

Includes deferrals of fees for serving as a Community Director and deferred fees for serving on BancFirst’s Senior Trust Committee.

(7)

Mr. Samis passed away October 22, 2020.

35


STOCK OWNERSHIP

Certain Beneficial Owners

Unless otherwise indicated, the following table sets forth information as of October 30, 2020,April 5, 2021 with respect to any person who is known by the Company to be the beneficial owner of more than 5% of the Company’s common stock, which is the Company’s only class of voting securities.

 

Name and Address of

Beneficial Owner

 

Amount and Nature of

Beneficial

Ownership

 

Percent

of Class

 

 

Amount and Nature of

Beneficial

Ownership

 

Percent

of Class

 

David E. Rainbolt

P.O. Box 26788

Oklahoma City, OK 73126

 

5,541,924    

(1)

 

16.96%

 

 

5,435,559

(1)

 

16.59%

 

 

 

 

 

 

 

 

 

 

 

 

 

Leslie J. Rainbolt

P.O. Box 26788

Oklahoma City, OK 73126

 

5,357,500    

(2)

 

16.39%

 

 

5,250,000

(2)

 

16.02%

 

 

 

 

 

 

 

 

 

 

 

 

 

BancFirst Corporation Employee Stock

Ownership Plan (the “ESOP”) and BancFirst

Corporation Thrift Plan (the “Thrift Plan”)

together the “Retirement Plans”

P.O. Box 26788

Oklahoma City, OK 73126

 

1,888,871    

(3)

 

5.78%

 

 

1,908,308

(3)

 

5.82%

 

 

 

 

 

 

 

 

 

 

 

 

 

Investors Trust Company

1202 North Tenth Street

Duncan, OK 73533

 

1,910,283    

(4)

 

5.85%

 

 

1,867,494

(4)

 

5.70%

 

 

 

 

 

 

 

 

 

 

 

 

 

The Vanguard Group

100 Vanguard Blvd.

Malvern, PA 19355

 

2,009,538

 

 

6.15%

 

 

2,817,968

 

 

8.60%

 

 

 

 

 

 

 

Blackrock Inc.

55 East 52nd Street

New York, NY 10055

 

3,275,447

 

 

9.99%

 

 

(1)

Shares shown as beneficially owned by David E. Rainbolt include 5,357,5005,250,000 shares held by BF Bank Partners LP, a family partnership of which Mr. Rainbolt is the managing partner and 68,42469,459 shares held by the Retirement Plans for the accounts of Mr. Rainbolt.

(2)

Shares shown as beneficially owned by Leslie J. Rainbolt include 5,357,5005,250,000 shares held by Main Street Banking Partners, LP, a family partnership of which Mrs.Ms. Rainbolt is the managing partner. David E. Rainbolt is a co-managing partner.

(3)

Includes 1,679,9031,707,157 shares (5.14%(5.21%) held by the ESOP and 208,968201,151 shares held by the Thrift Plan (0.64%(0.61%).  The Retirement Plans are both administered by the Company’s Retirement Plan Administrative Committee.  Each Retirement Plan participant may direct the Retirement Plan Administrative Committee how to vote the shares of common stock that are allocated to his or her account.  The Retirement Plan Administrative Committee exercises discretion in voting any shares that are not allocated to participants’ accounts.  As of October 30, 2020,April 5, 2021, participants in both Retirement Plans could direct the voting of all 01,908,308 shares held by the plans.

(4)

Investors Trust Company, an Oklahoma-chartered trust company, acts as trustee or co-trustee of various trusts, which, in the aggregate, own these1,867,494 shares. Tom H. McCasland, III, a director of the Company, is a shareholder of Investors Trust Company and serves on its Board of Directors.  Any voting or disposition of the Company’s common stock by Investors Trust Company is determined by its Board of Directors. No attribution of beneficial ownership of shares included as beneficially owned by Investors Trust Company has been made separately to its board members or owners, all of whom disclaim beneficial ownership of shares in such capacities.

Because of his position with the Company and his equity ownership therein, David E. Rainbolt may be deemed to be a “parent” of the Company for purposes of the Securities Act of 1933.

36


Directors andand Management

As of October 30, 2020,April 5, 2021, the directors and executive officers of the Company as a group (48(47 persons, including certain executive officers of BancFirst and Pegasus Bank)Pegasus), beneficially owned 12,310,38812,077,482 shares of the Company’s common stock (37.67%(36.85% of the total shares outstanding at that date), excluding 414,250303,000 shares represented by options exercisable within 60 days. It is the intent of the directors and executive officers to vote these shares (i) FOR the election of the 20 nominees named herein as directors of the Company; (ii) FOR the amendment and restatement of the BancFirst Corporation Stock Option Plan.Plan; (iii) FOR the amendment of the BancFirst Corporation Non-Employee Directors’ Stock Option Plan; (iv) FOR the amendment of the BancFirst Corporation Directors’ Deferred Stock Compensation Plan; and (v) FOR the ratification of BKD, LLP as the Company’s independent registered public accounting firm.

7


The following table sets forth as of October 30, 2020,April 5, 2021 the number of shares of common stock owned by (i) each director of the Company, (ii) each namednominee for director, (iii) the executive officer,officers listed in the Summary Compensation Table, and (iii)(iv) all directors and executive officers of the Company as a group, together with the percentage of outstanding common stock owned by each. The number of shares of common stock outstanding for each listed person includes any shares the individual has the right to acquire within 60 days after October 30, 2020.April 5, 2021. For purposes of calculating each person’s or group’s percentage ownership, stock options exercisable within 60 days are included for that person or group, but not for the stock ownership of any other person or group.

 

 

Amount of

Beneficial Ownership

 

 

Percent

of

Class

 

 

Amount of

Beneficial Ownership

 

 

Percent

of

Class

 

Dennis L. Brand

 

31,700

(1)

 

 

*

 

 

26,909

(1)

 

 

*

 

C. L. Craig, Jr.

 

 

51,740

 

 

 

*

 

 

 

51,740

 

 

 

*

 

F. Ford Drummond

 

26,000

(2)

 

 

*

 

 

26,000

(2)

 

 

*

 

Joseph Ford

 

7,500

(3)

 

 

*

 

 

7,500

(3)

 

 

*

 

Joe R. Goyne

 

4,000

 

 

 

*

 

 

4,600

 

 

 

*

 

David R. Harlow

 

35,426

(4)

 

 

*

 

 

15,758

(4)

 

 

*

 

William O. Johnstone

 

16,216

(5)

 

 

*

 

 

16,514

(5)

 

 

*

 

Frank Keating

 

20,000

(6)

 

 

*

 

 

20,000

(6)

 

 

*

 

Bill G. Lance

 

2,900

(7)

 

 

*

 

 

5,400

(7)

 

 

*

 

Kevin Lawrence

 

62,921

(8)

 

 

*

 

 

59,375

(8)

 

 

*

 

Dave R. Lopez

 

10,000

(9)

 

 

*

 

 

10,000

(9)

 

 

*

 

William Scott Martin

 

397,904

(10)

 

 

1.22%

 

 

372,904

 

 

 

1.14%

 

Tom H. McCasland, III

 

259,954

(11)

 

 

*

 

 

259,954

(10)

 

 

*

 

Ronald J. Norick

 

36,000

(12)

 

 

*

 

 

36,000

(11)

 

 

*

 

David E. Rainbolt

 

5,541,924

(13)

 

 

16.96%

 

 

5,435,559

(12)

 

 

16.59%

 

H. E. Rainbolt

 

40,806

 

 

 

*

 

 

40,606

 

 

 

*

 

Robin Roberson

 

7,500

(14)

 

 

*

 

 

7,500

(13)

 

 

*

 

Darryl W. Schmidt

 

57,612

(15)

 

 

*

 

 

57,918

(14)

 

 

*

 

Natalie Shirley

 

26,000

(16)

 

 

*

 

 

26,000

(15)

 

 

*

 

Michael K. Wallace

 

23,400

(17)

 

 

*

 

 

11,400

(16)

 

 

*

 

Gregory G. Wedel

 

 

22,000

(18)

 

 

*

 

 

 

22,000

(17)

 

 

*

 

G. Rainey Williams, Jr.

 

64,600

 

 

 

*

 

 

64,600

 

 

 

*

 

All directors and executive officers as a group (48 persons)

 

 

12,724,638

 

 

 

38.45%

 

All directors and executive officers as a group (47 persons)

 

 

12,380,482

 

 

 

37.43%

 

* Percent of class is less than 1% 

 

(1)

Includes 5,7005,909 shares held by the Retirement Plans for the accounts of Mr. Brand.

(2)

Includes 20,000 shares Mr. Drummond has the right to acquire upon the exercise of options exercisable within 60 days after October 30, 2020.April 5, 2021.

(3)

Consists of shares Mr. Ford has the right to acquire upon the exercise of options exercisable within 60 days after October 30, 2020.April 5, 2021.

(4)

Includes 8,4268,758 shares held by the Retirement Plans for the accounts of Mr. Harlow and 20,000 shares Mr. Harlow has the right to acquire upon the exercise of options exercisable within 60 days after October 30, 2020.Harlow.

(5)

Includes 8,870 shares owned by a company that Mr. Johnstone controls and 7,3467,644 shares held by the ESOP for the account of Mr. Johnstone.

(6)

Consists of shares Mr. Keating has the right to acquire upon the exercise of options exercisable within 60 days after October 30, 2020.April 5, 2021.

(7)

Includes 2,5005,000 shares Mr. Lance has the right to acquire upon the exercise of options exercisable within 60 days after October 30, 2020.April 5, 2021.

(8)

Includes 1,1711,375 shares held by the ESOP for the account of Mr. Lawrence and 61,75058,000 shares Mr. Lawrence has the right to acquire upon the exercise of options exercisable within 60 days after October 30, 2020.April 5, 2021.

(9)

Consists of shares Mr. Lopez has the right to acquire upon the exercise of options exercisable within 60 days after October 30, 2020.April 5, 2021.

37


(10)

Includes 5,000 shares Mr. Martin has the right to acquire upon the exercise of options exercisable within 60 days after October 30, 2020.

(11)

Includes 6,844 shares held directly by Mr. McCasland’s wife and 253,110 shares held by three trusts of which Mr. McCasland is the trustee.

(12)(11)

Consists of shares held by a partnership of which Mr. Norick is a general partner.

(13)(12)

Includes 5,357,5005,250,000 shares held by BF Bank Partners LP, a family partnership of which Mr. Rainbolt is the managing partner, and 68,42469,459 shares held by the Retirement Plans for the accounts of Mr. Rainbolt.

8


(14)(13)

Consists of shares Ms. Roberson has the right to acquire upon the exercise of options exercisable within 60 days after October 30, 2020.April 5, 2021.

(15)(14)

Includes 6,6126,918 shares held by the ESOP for the account of Mr. Schmidt. Mr. Schmidt has a $454,150$432,133 loan with Emprise Bank, in which 35,000 shares of the Company’s stock is pledged to this note.

(16)(15)

Includes 20,000 shares Ms. Shirley has the right to acquire upon the exercise of options exercisable within 60 days after October 30, 2020.April 5, 2021.

(17)(16)

Includes 20,0006,000 shares Mr. Wallace has the right to acquire upon the exercise of options exercisable within 60 days after October 30, 2020.April 5, 2021.

(18)(17)

Includes 20,000 shares Mr. Wedel has the right to acquire upon the exercise of options exercisable within 60 days after October 30, 2020.April 5, 2021.

 

DELINQUENT SECTION 16(a) REPORTS

Section 16(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), requires our directors, executive officers and holders of more than 10% of our common stock to file reports with the SEC regarding their ownership and changes in ownership of our common stock. We believe that, during fiscal 2020, our directors, executive officers and 10% shareholders complied with all Section 16(a) filing requirements, with the exception noted herein. A late Form 3 was filed for Greg S. Diehl on March 31, 2020, that was due on March 9, 2020. A late Form 3 was filed for Brian Pierson on April 2, 2020, that was due on March 9, 2020. A late Form 3 was filed for John K. Slay, Jr. on April 10, 2020, that was due on September 2, 2018. A late amended Form 4 was filed for Joe R. Goyne on March 18, 2020, that was due on March 9, 2020. In making these statements, we have relied upon examination of the copies of Forms 3, 4, and 5, and amendments thereto, provided to us and the written representations of our directors, executive officers and 10% shareholders.

PROPOSALS FOR THE 2022 ANNUAL MEETING OF SHAREHOLDERS

If you would like to have a proposal considered for inclusion in the proxy statement for the 2022 Annual Meeting, you must submit your proposal no later than December 17, 2021. You must submit proposals in writing to the attention of the Secretary at the following address:

Secretary

BancFirst Corporation

101 N. Broadway

Oklahoma City, Oklahoma 73102

OTHER MATTERS

The management of the Company does not know of any other matters that are to be presented for action at the meeting.  Should any other matter come before the meeting, however, it is the intent of the persons named in the proxy to vote all proxies with respect to such matter in accordance with the recommendations of the Board.

 

9

38


Appendix A

 

AMENDED AND RESTATEDAppendix A

BANCFIRST CORPORATION RESOLUTION TO AMEND

THE STOCK OPTION PLAN

 

 

1.

PURPOSE.  This Amended and Restated BancFirst Corporation Stock Option Plan (“the Plan”) incorporates the amendments to the Sixteenth Amended and Restated BancFirst Corporation Stock Option Plan adopted by the stockholders of BancFirst Corporation (the “Company”) on___, 2020.  

The PlanWHEREAS, the Board of Directors has determined that it is intended to incent long-term employment withadvisable and in the Company, and encourage ownership of Company Common Stock by certain key employees and officersbest interests of the Company and its subsidiaries, in orderstockholders to increase their proprietary interest in the Company's success.number of shares underlying options to be granted under the BancFirst Corporation Stock Option Plan (the “Company Option Plan”).

 

TheNOW, THEREFORE BE IT RESOLVED, that an amendment to the Company Option Plan to increase the total number of shares of Common Stock issuable under the Company Option Plan is intended to comply withhereby approved and adopted, and that, accordingly, Section 409A5 of the Code.Company Option Plan be amended to read in its entirety as follows:

 

2.

DEFINITIONS.  As used herein, the following terms shall have the corresponding meanings:

2.1.

Board of Directors” shall mean the Board of Directors of the Company.

2.2.

“Charity” shall mean any organization that has been recognized by the Internal Revenue Service as qualifying under Section 501(c)(3) of the Code of 1986.

2.3.

“Code” shall mean the U.S. Internal Revenue Code of 1986, as amended.

2.4

“Committee” shall mean the Board of Directors or the Executive Committee acting under authority delegated by the Board of Directors.

2.5.

“Common Stock” shall mean the common stock, par value $1.00 per share, of the Company.

2.6.

“Continuous Service” shall mean, with respect to any Employee, the absence of any interruption or termination of service as an Employee.  Such status shall not be considered interrupted in the case of (a) sick leave, (b), military leave, (c), except as otherwise provided in any leave policy adopted by the Company or one of its Subsidiaries from time to time, an approved leave of absence or (d) a transfer between locations and/or between the Company and its Subsidiaries.  The determination whether an Employee remains in Continuous Service shall be made by the Committee, in its sole discretion.  

2.7.

“Date of Grant” shall mean the date of the approval by the Committee of a Stock Option granted hereunder as set forth in the applicable stock option award agreement.  In the event of a grant conditioned, among other things, upon stockholder ratification of this Plan, the date of such conditional grant shall be the Date of Grant for purposes of this Plan.

2.8.

“Employee” shall mean any person employed by the Company or any Subsidiary of the Company.

2.9.

“Executive Committee” shall mean the Executive Committee of the Board of Directors.

2.10.

“Fair Market Value” shall mean, with respect to the grant of a Stock Option under the Plan, (a) if the Common Stock is listed on a national securities exchange or NASDAQ, the closing price of the Common Stock for the business day of the Date of Grant, or (b) if the Common Stock is not then listed on an exchange, the average of the closing bid and asked prices per share for the Common Stock in the over-the-counter market as quoted on such market for the business day of the Date of Grant or (c) if the Common Stock is not then listed on any exchange or quoted on an over-the-counter market, an amount determined in good faith by the Committee to be the fair market value of the Common Stock, after consideration of all relevant factors, on the Date of Grant.  In all events, “Fair Market Value” shall be determined in good faith by the Committee in a manner that will comply with the provisions of Section 409A of the Code and the regulations promulgated thereunder.

2.11.

“NASDAQ” shall mean NASDAQ Global Market, Inc.

2.12.

“Nonqualified Stock Option” shall mean a Stock Option that is not intended to qualify for tax treatment as an “incentive stock option” under Section 422 of the Code.

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2.13.

“Option Exercise Price” shall mean the price paid for shares of Common Stock upon the exercise of a Stock Option granted hereunder.

2.14.

“Optionee” shall mean any person entitled to exercise a Stock Option pursuant to the terms of the Plan.

2.15.

“Stock Option” shall mean a stock option giving an Optionee the right to purchase shares of the Company’s Common Stock.  Stock Options granted under the Plan shall be Nonqualified Stock Options.

2.16.

“Subsidiary” shall mean a subsidiary company, whether now or hereafter existing, of the Company.

3.ADMINISTRATION.  

3.1

AUTHORITY.  The Plan shall be administered by, and all Stock Options shall be authorized by, the Committee.  

Subject to the provisions of the Plan and subject to the approval of any relevant authority, including, without limitation, the required approval, if any, of any national securities exchange or NASDAQ, the Committee shall have the following authority, in its discretion:

(a)

to determine the Option Exercise Price, which shall be equal to the Fair Market Value of the Common Stock in accordance with the definition of such term contained herein;

(b)

to select the Employees to whom Stock Options may from time to time be granted hereunder;

(c)

to determine whether and to what extent Stock Options are granted hereunder;

(d)

to determine the number of shares of Common Stock covered by each Stock Option granted hereunder;

(e)

to approve forms of agreement for use under the Plan;

(f)

to determine when and under what circumstances the Option Exercise Price may be settled in cash or other consideration instead of Common Stock;

(g)

to construe and to interpret the terms and the conditions of the Plan and the Stock Options granted pursuant to the Plan; and

(h)

to adopt and to revise any regulations and rules as the Committee may deem necessary or advisable to administer the Plan.

Notwithstanding anything else contained herein, except for (a) an adjustment pursuant to Section 12, or (b) the cancellation and re-grant of Stock Options that re-establishes the Fair Market Value of the Common Stock and therefore the Option Exercise Price of Stock Options not to exceed a total of 300,000 shares in any period of twelve (12) continuous months, which the Committee may affect without stockholder approval,  in no case may the Committee amend an outstanding Stock Option to reduce the Option Exercise Price of the Stock Option.

3.2.

EFFECT OF DECISIONS.  All constructions, decisions, determinations and interpretations of the Committee shall be final and binding upon all persons having an interest in the Plan and/or any Stock Option.  

3.3.

EXCULPATION; INDEMNIFICATION. No member of the Committee shall be liable for any action made in good faith, and the members shall be entitled to indemnification and reimbursement in the manner provided in the Company's Certificate of Incorporation, or as otherwise permitted by law.  A member of the Committee shall be eligible to receive a grant of a Stock Option under the Plan on the same terms as other Employees.  However, if the Committee grants Stock Options to a member of the Committee, such grant shall not be effective until such grant is approved by the Compensation Committee of the Board of Directors, consisting of three (3) or more "independent directors" as defined in and determined pursuant to the Marketplace Rules of the NASDAQ or any stock exchange upon which the Common Stock of the Company is listed.  

3.4.

RULE 16B-3 COMPLIANCE.  With respect Optionees who are subject to Section 16(b) of the Exchange Act, the Plan shall be administered in compliance with the requirements of Rule 16b-3.  

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4.

ELIGIBILITY.  The individuals that shall be eligible to participate in the Plan shall be such key Employees (including officers) of the Company and/or one of its Subsidiaries in which the Company has proprietary interest by reason of stock ownership or otherwise, including any company in which the Company acquires a proprietary interest after the adoption of this Plan (but only if the Company owns, directly or indirectly,  not less than 50% of the total combined voting power in the company), as the Committee shall determine from time to time.  

5.

STOCK.  The stock subject to Stock Options and the other provisions of the Plan shall be shares of the Company’sCorporation’s authorized but unissued Common Stock or treasury stock, as determined by the Committee.  Subject to adjustment in accordance with Section 6.9 and Section 6.10,the provisions of Subparagraph 6.7 hereof, the total number of shares of Common Stock of the CompanyCorporation on which Stock Options may be granted under the Plan subsequent to the effective date of this amended and restated Plan shall not exceed in the aggregate 320,000300,000 shares.  In the event that any outstanding Stock Option under the Plan for any reason expires or is terminated prior to the end of the period during which Stock Options may be granted, the shares of the Common Stock allocable to the unexercised portion of such Stock Option may again be subject to a Stock Option under the Plan.

6.

TERMS AND CONDITIONS OF STOCK OPTIONS.  Stock Options granted pursuant to the Plan shall be evidenced by a stock option award agreement in such form as the Committee shall, from time to time, approve.  Stock Options shall comply with and be subject to the following terms and conditions:

6.1.

MEDIUM AND TIME OF PAYMENT.  The Option Exercise Price shall be payable in United States Dollars upon the exercise of the Stock Option and may be paid in cash or by certified check, bank draft or money order payable to the order of the Company, unless otherwise determined by the Committee. The consideration to be paid for shares of Common Stock to be issued upon exercise of a Stock Option, including, without limitation, the method of payment may be determined by the Committee and may consist entirely of (a) cash or certified check, bank draft or money order payable to the order of the Company, (b), to the extent permitted by applicable law, regulation or rule, authorization for the Company to retain from the total number of shares of Common Stock for which the Stock Option is exercised that number of shares of Common Stock having a Fair Market Value on the date of exercise equal to the exercise price for the total number of shares of Common Stock for which the Stock Option is exercised or (c) a combination of the foregoing.

6.2.

NUMBER OF SHARES.  The Stock Option shall state the total number of shares to which it pertains.

6.3.

OPTION EXERCISE PRICE.  The Option Exercise Price shall be not less than the Fair Market Value of the Common Stock on the Date of Grant.

6.4.

TERM OF STOCK OPTIONS.  The period during which Stock Options shall be exercisable shall be fixed by the Committee, but in no event shall a Stock Option be exercisable after the expiration of fifteen (15) years from the date such Stock Option is granted.  Subject to the foregoing, Stock Options shall be exercisable at such times and be subject to such restrictions and conditions as the Committee shall in each instance determine, which restrictions and conditions need not be the same for all Stock Options.

6.5.

PROCEDURE FOR EXERCISE.  Any Stock Option shall be exercisable at such times, on such terms and subject to such conditions as may be determined by the Committee and reflected in the stock option agreement.

A Stock Option shall be deemed to be exercised when notice of such exercise has been given to the Company by the person entitled to exercise the Stock Option and the Company has received full payment of the Option Exercise Price in accordance with Section 6.1.  

 

RESOLVED FURTHER, that the terms and provisions of the foregoing amendments to the Company Option Plan (the “Company Option Plan Amendment”) be submitted to the stockholders of the Company at the Annual meeting of Stockholders to be held May 27, 2021 for their approval and adoption;

6.6.

DATE OF EXERCISE.  Unless otherwise determined by the Committee at the time of granting a Stock Option or in accordance with this Plan, Stock Options shall be exercisable at the rate set forth below beginning four (4) years from the Date of Grant.  After becoming exercisable, the Stock Option may be exercised at any time and from time to time in whole or in part (but in whole share increments) until termination of the Stock Option as set forth this Plan.

Elapsed Years from

Date of Grant

 

Percent

of Shares

 

 

 

Cumulative

Percent

of Shares

 

less than 4 years

 

0

%

 

 

0

%

4 but less than 5 years

 

25

%

 

 

25

%

5 but less than 6 years

 

25

%

 

 

50

%

6 but less than 7 years

 

25

%

 

 

75

%

7 or more years

 

25

%

 

 

100

%

 

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6.7.

TERMINATION OF EMPLOYMENT.  In the event of the termination of an Optionee’s Continuous Employment as an Employee, such Optionee’s Stock Option, whether or not then exercisable, shall terminate immediately; provided, however, that if the termination is not as a result of embezzlement, theft or other violation of the law, the Optionee shall have the right to exercise such Stock Option (to the extent exercisable at the time of termination) at any time within thirty (30) days after such termination; provided, further, that if any termination of employment is related to the Optionee's retirement with the consent of the Company or one of its Subsidiaries, or the Optionee’s disability, the Optionee shall have the right to exercise such Stock Option (to the extent exercisable up to the date of retirement) at any time within six (6) months after such retirement; and provided, further, that if the Optionee dies while in the employment of the Company or within the period of time after termination of employment or retirement during which such Optionee was entitled to exercise such Stock Optionee as hereinabove provided, his estate, personal representative or beneficiary shall have the right to exercise such Stock Option (to the extent exercisable at the date of death) at any time within twelve (12) months from the date of such Optionee death or disability.RESOLVED FURTHER, that if the stockholders shall have voted in favor of the Company Option Plan Amendment, the President or any Vice President of the Company (each, an “Authorized Officer” and collectively, the “Authorized Officers”) be, and each of them hereby is, authorized and directed, in the name and on behalf of the Company, to set aside and reserve for issuance 300,000 shares of Common Stock pursuant to the Company Option Plan, subject to adjustments as may be required in accordance with the terms of the Company Option Plan;

6.8.

REINSTATEMENT.  Notwithstanding anything contained in Section 6, the Committee has the authority to reinstate a Stock Option forfeited under Section 6.7 if the Optionee resumes employment as an Employee within twelve (12) months following such termination; provided, however, in no event shall any such reinstatement extend the specified expiration date of the Stock Option.

6.9.

RECAPITALIZATION.  The aggregate number of shares of Common Stock on which Stock Options may be granted to persons participating under the Plan, the number of shares thereof covered by each outstanding Stock Option, and the price per share thereof in each such Stock Option, shall all be proportionately adjusted for any increase or decrease in the number of issued shares of Common Stock of the Company resulting from a subdivision or consolidation of shares or other capital adjustment or the payment of a stock dividend or other increase or decrease in such shares, effected without receipt of consideration by the Company; provided, however, that any fractional shares resulting from such adjustment shall be eliminated.  In the event of a change in the Company's Common Stock that is limited to a change in the designation thereof to “Capital Stock” or other similar designation, or a change in the par value thereof, or from par value to no par value, without increase in the number of issued shares, the shares resulting from any such change shall be deemed to be Common Stock within the meaning of the Plan.

6.10.

REORGANIZATION OF COMPANY.  Subject to any required action by the stockholders of the Company, if the Company shall be the surviving or resulting corporation in any merger or consolidation that does not result in change of control of the Company, any Stock Option granted hereunder shall pertain and apply to the securities to which a holder of the number of shares of Common Stock subject to the Stock Option would have been entitled.  In the event of a dissolution or liquidation of the Company or a merger or consolidation in which the Company is not the surviving or resulting corporation or that results in a change in control of the Company, or a tender or exchange offer which results in a change in control of the Company, the Committee shall determine: (a) whether all or any part of the unexercisable portion of any Stock Option outstanding under the Plan shall terminate; (b) whether the Stock Options shall become immediately exercisable; or (c) whether such Stock Options may be exchanged for options covering securities of any such surviving or resulting corporation, subject to the agreement of any such surviving or resulting corporation, on terms and conditions substantially similar to a Stock Option hereunder.

6.11.

TAX WITHHOLDING.  Upon any event that requires tax withholding in connection with any Stock Option, the Company or one of its Subsidiaries shall have the right at its option:

(a)

to require the Optionee (or the estate, personal representative or beneficiary) to pay or to provide for the payment of any taxes that the Company or one of its Subsidiaries may be required to withhold with respect to such event; or

(b)

to deduct from any amount otherwise payable in cash to the Optionee (or the estate, personal representative or beneficiary) the amount of any taxes that the Company or one of its Subsidiaries may be required to withhold with respect to such event.

In any case where tax is required to be withheld in connection with the delivery of securities under the Plan, the Committee may in its sole discretion (subject to applicable laws, regulations and rules) require or grant the Optionee (or the estate, personal representative or beneficiary) the right to elect, pursuant to such regulations and such rules as may be established by the Committee  and subject to such conditions as may be established by the Committee, that the Company reduce the number of shares of Common Stock to be delivered by (or otherwise reacquire from the such person) the appropriate number of shares of Common Stock, valued at a consistent manner with the Fair Market Value or at the sales price in accordance with cashless exercises, necessary to satisfy the applicable withholding obligation.  

 

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6.12.

ASSIGNABILITY.  Except as provided in this Section 6.12, no Stock Option shall be assignable or transferable except as follows:RESOLVED FURTHER, that the Authorized Officers hereby are, and each of them with the full authority to act without the others hereby is, authorized, in the name and on behalf of the Company, to execute and deliver any and all contracts and writings of any nature and to do any other act or thing that may be necessary or desirable to carry out the foregoing resolutions.

(a)

by will or by the laws of descent and distribution.

(b)

for the purpose of making a charitable gift as permitted by Section 6.16.

(c)

to the Optionee as trustee or to the Optionee and one or more others as co-trustees, of a revocable trust that allows the Optionee to amend or revoke the trust at any time.  If the Optionee relinquishes such Optionee’s power to amend or revoke the trust or resigns as a trustee, the Optionee shall withdraw the Stock Option from the trust prior to the relinquishment of such power or such Optionee’s resignation as trustee and shall re-vest title to the Stock Option in the Optionee’s individual name.  If the trust becomes irrevocable due to the death of the Optionee, the successor or remaining trustee(s) shall have the same power to exercise the Stock Option under Section 6.7 as the personal representative. If the Optionee becomes incapacitated, the date of incapacity shall be deemed for purposes of this Plan as the date of termination of employment under Section 6.6 (whether or not Optionee’s employment has actually terminated), and the successor or remaining trustee(s) of the trust shall have the same right to exercise the Stock Option as a terminated Optionee has under Section 6.7.  The Optionee as trustee and any successor or remaining trustee(s) shall be bound by all the terms and conditions of the Plan and the stock option award agreement delivered by the Company to the Optionee under this Plan.

(d)

to the extent set forth in the stock option aware agreement governing such Stock Option.

6.13.

OPTIONEE'S AGREEMENT.  If, at the time of the exercise of any Stock Option, it is necessary or desirable, in order to comply with any applicable laws, rules or regulations relating to the sale of securities, that the Optionee exercising the Stock Option shall agree that such Optionee will purchase the shares that are subject to the Stock Option for investment and not with any present intention to resell the same, the Optionee will, upon the request of the Company, execute and deliver to the Company an agreement to such effect.

6.14.

RIGHTS AS A STOCKHOLDER.  An Optionee shall have no rights as a stockholder with respect to shares covered by his Stock Option until the date of issuance of the shares to him and only after such shares are fully paid.

6.15.

OTHER PROVISIONS.  The stock option award agreement authorized under the Plan may contain such other provisions as the Committee shall deem advisable.

6.16.

Charitable Gift.  An Optionee shall be permitted to assign such Optionee’s Stock Option without consideration, either in full or in one or more partial assignments from time to time, to a Charity.  Assignment(s) may be made during the Optionee’s lifetime or may be effective upon his death.  If a Stock Option is assigned to a Charity, in whole or in part, it shall continue to be subject to Section 6.6 and Section 6.6, which shall thereafter apply to the same extent as if the Stock Option were still held by the Optionee himself (if the Optionee is living), or by the Optionee’s estate, personal representative or beneficiary (if the Optionee is deceased).

7.

MARKETABILITY OF SHARES.  The Common Stock is currently traded on NASDAQ.  As a result, its liquidity varies widely in response to supply and demand.  Consequently, the Company can give no assurances as to the marketability of shares acquired under the Plan.

8.

TAX IMPLICATIONS.  It is anticipated that Stock Options granted under the Plan will be treated as Nonqualified Stock Options by the Internal Revenue Service.  As such, exercise of the Stock Option would generate a taxable event with the difference between the original Option Exercise Price and the Fair Market Value of the Common Stock at the time of exercise being treated as ordinary income.  If a Stock Option is transferred to a Charity as permitted by Section 6.12(b) and Section 6.16, the Optionee should expect to have ordinary income attributed to him at the time the Charity exercises the Stock Option, in the same amount and with the same effect as if the Optionee exercised the Stock Option.

9.

TERM OF PLAN.  No Stock Option may be granted after December 31, 2024.

10.

NO OBLIGATION TO EXERCISE OPTION.  The granting of a Stock Option shall impose no obligation upon the Optionee to exercise such Stock Option.

11.

COMPLIANCE WITH LAW.  The Plan, the granting and the vesting of Stock Options, the offer, the issuance and the delivery of shares of Common Stock and/or the payment of money under the Plan are subject to compliance with all applicable federal and state laws, regulations and rules (including, without limitation, federal and state securities laws, regulations and rules and federal margin requirements) and to such approval by governmental, listing or regulatory authorities as may be necessary or

A-5


advisable in connection therewith.   Any person acquiring any securities under the Plan shall, if requested by the Company or one of its Subsidiaries, provide such assurances and representations as  the Committee may deem necessary or advisable to assure compliance with all applicable legal and accounting requirements.

12.

AMENDMENTS.  

12.1

AMENDMENT AND TERMINATION.  The Committee may alter, amend, discontinue, suspend or terminate the Plan or any portion thereof at any time, including any alteration, discontinuance, suspension or termination necessary to comply with any tax, securities or regulatory law or requirement or any applicable listing requirement with which the Committee intends the Plan to comply; provided, however, no such alteration, discontinuance, suspension or termination shall be made without shareholder approval if such amendment constitutes a “material amendment.” For purposes of the Plan, a “material amendment” shall mean an amendment that (a) materially increases the benefits accruing to Optionees in the Plan, (b) materially increases the number of securities that may be issued under the Plan, (c) materially modifies the requirements for participation in the Plan or (d) is otherwise deemed a material amendment by the Committee pursuant to any applicable law, regulation or rule, applicable accounting or listing standards.

12.2

AMENDMENTS TO OPTIONS.  The Committee may not amend the terms and conditions of a Stock Option without the prior written consent of the Optionee.

12.3

LIMITATIONS ON AMENDMENTS TO THE PLAN. No alteration, amendment, suspension or termination of the Plan or change affecting any outstanding Stock Option shall, without the prior written consent of the Optionee, affect in a manner materially adverse to such Optionee, the obligations of the Optionee under any Stock Option granted prior to the effective date of such change.   Changes under Section 6.8 and Section 6.9 shall not be deemed to materially adverse changes under this Section 12.3.

 

 

 

 

 

 

 

 

 

 

 

 


A-6A-1


Appendix B

 

Appendix B

BANCFIRST CORPORATION RESOLUTION OFTO AMEND

THE BOARD OF DIRECTORSNON-EMPLOYEE DIRECTORS’

OF BANCFIRST CORPORATIONSTOCK OPTION PLAN

 

WHEREAS, the Board of Directors has determined that it is advisable and in the best interests of the Company originally adoptedand its stockholders to increase the number of shares underlying options to be granted under the BancFirst Corporation Non-Employee Directors’ Stock Option Plan (the “Plan”“Non-Employee Directors’ Plan”) in May 1986 to provide incentive compensation and stock ownership for key officers; and;

WHEREAS, since the adoption of the Plan, there have been significant changes in stock option plan design, terms and regulation; and

WHEREAS, whereas it is considered to be advantageous and appropriate to amend and restate the Plan to (1) update the terms of the Plan, and (2) afford the Board of Directors broader authority to modify individual stock option grants within the requirements and restrictions of the NASDAQ Stock Market Rules; and

NOW, THEREFORE BE IT RESOLVED, that an amendment to the Non-Employee Directors’ Plan to increase the total number of shares of Common Stock issuable under the Non-Employee Directors’ Plan is hereby approved and adopted, and that, accordingly, Section 5 of the Non-Employee Directors’ Plan be amended to read in its entirety as follows:

“5.STOCK.  The stock subject to Stock Options and other provisions of the Plan shall be shares of the Corporation’s authorized but unissued Common Stock or treasury stock, as determined by the Committee.  Subject to adjustment in accordance with the provisions of Subparagraph 6.7 hereof, the total number of shares of Common Stock of the Corporation on which Stock Options may be granted under the Plan subsequent to the effective date of this amended and restated Plan shall not exceed in the aggregate 50,000 shares.  In the event that any outstanding Stock Option under the Plan for any reason expires or is terminated prior to the end of the period during which Stock Options may be granted, the shares of the Common Stock allocable to the unexercised portion of such Stock Option may again be subject to a Stock Option under the Plan.”

RESOLVED FURTHER, that the Amendedterms and Restated BancFirst Corporation Stock Optionprovisions of the foregoing amendment to the Non-Employee Directors’ Plan Dated(the “Non-Employee Directors’ Plan Amendment”) be submitted to the stockholders of the Company at the Annual meeting of Stockholders to be held May 27, 2021 for their approval and adoption;

RESOLVED FURTHER, that if the stockholders shall have voted in favor of the Non-Employee Directors’ Plan Amendment, the Authorized Officers of the Company be, and each of them hereby is, approved.

FURTHER RESOLVED, that sinceauthorized and directed, in the NASDAQname and on behalf of the Company, to set aside and reserve for issuance 50,000 shares of Common Stock Market Rules require shareholder approvalpursuant to the Non-Employee Directors’ Plan, subject to adjustments as may be required in accordance with the terms of material amendments to stock compensation plans, a Special Meeting of Shareholders is hereby called for such purpose on December 3, 2020 at 9:00 am, and that the record date for shareholders entitled to vote at such meeting is October 30, 2020.Non-Employee Directors’ Plan;

 

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RESOLVED FURTHER, that the Authorized Officers hereby are, and each of them with the full authority to act without the others hereby is, authorized, in the name and on behalf of the Company, to execute and deliver any and all contracts and writings of any nature and to do any other act or thing that may be necessary or desirable to carry out the foregoing resolutions.

 

 


FOLD AND DETACH HERE  

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Appendix C

BANCFIRST CORPORATION OKLAHOMA CITY, OKLAHOMA  PROXY/VOTING INSTRUCTION CARDRESOLUTION TO AMEND

THE DIRECTORS’ DEFERRED STOCK COMPENSATION PLAN

WHEREAS, the Board of Directors has determined that it is advisable and in the best interests of the Company and its stockholders to increase the number of shares underlying Stock Units to be credited under the BancFirst Corporation Directors’ Deferred Stock Compensation Plan (the “Directors’ Deferred Stock Compensation Plan”);

NOW, THEREFORE BE IT RESOLVED, that an amendment to the Directors’ Deferred Stock Compensation Plan to increase the total number of shares of Common Stock issuable under the Directors’ Deferred Stock Compensation Plan is hereby approved and adopted, and that, accordingly, Article III of the Directors’ Deferred Stock Compensation Plan be amended to read in its entirety as follows:

ARTICLE III

SHARES AVAILABLE UNDER THE PLAN

Subject to adjustment as provided in Article X, the maximum number of Shares that may be distributed in settlement of Stock Units under this Plan that are accumulated subsequent to the effective date of this amended and restated Plan shall not exceed 40,000 Shares.  Such Shares may include authorized but unissued Shares or treasury Shares.”

RESOLVED FURTHER, that the terms and provisions of the foregoing amendment to the Directors’ Deferred Stock Compensation Plan (the “Directors’ Deferred Stock Compensation Plan Amendment”) be submitted to the stockholders of the Company at the Annual meeting of Stockholders to be held May 27, 2021 for their approval and adoption;

RESOLVED FURTHER, that if the stockholders shall have voted in favor of the Directors’ Deferred Stock Compensation Plan Amendment, the Authorized Officers of the Company be, and each of them hereby is, authorized and directed, in the name and on behalf of the Company, to set aside and reserve for issuance 40,000 shares of Common Stock pursuant to the Directors’ Deferred Stock Compensation Plan, subject to adjustments as may be required in accordance with the terms of the Directors’ Deferred Stock Compensation Plan;

RESOLVED FURTHER, that the Authorized Officers hereby are, and each of them with the full authority to act without the others hereby is, authorized, in the name and on behalf of the Company, to execute and deliver any and all contracts and writings of any nature and to do any other act or thing that may be necessary or desirable to carry out the foregoing resolutions.

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BancFirst P.O. BOX 8016, CARY, NC 27512-9903 YOUR VOTE IS IMPORTANT! PLEASE VOTE BY: INTERNET Go To: www.proxypush.com/BANF Cast your vote online Have your Proxy Card ready. Follow the simple instructions to record your vote. PHONE Call 1-866-870-6370 Use any touch-tone telephone, 24 hours a day, 7 days a week. Have your Proxy Card ready. Follow the simple recorded instructions. MAIL Mark, sign and date your Proxy Card. Fold and return your Proxy Card Form in the postage-paid envelope provided. BancFirst Corporation Annual Meeting of Stockholders For Stockholders as of April 05, 2021 CONTROL NUMBER <— Please fold here — Do not separate —> TIME: Thursday, May 27, 2021 09:00 AM, Local Time PLACE: Meeting to be held virtually via conference call. Dial in number: 1-408-418-9388 Access code: 187 688 7792. This proxy is being solicited on behalf of the Board of Directors of  BancFirst Corporation for the Annual Meeting on May 23, 2019.  Your vote is important! Please sign and date on the reverse side  and return promptly in the enclosed envelope.  The undersigned hereby appoints David E. Rainbolt and Randy Foraker, as Proxies each with  the power to appoint his substitute and each with full wer to act withoutor either of them, as the other,true and hereby authorizes them to present and vote all shares of Common Stocklawful attorneys of the undersigned, with full power of substitution and revocation, and authorizes them, and each of them, to vote all the shares of capital stock of BancFirst Corporation (the “Company”) which the undersigned would beis entitled to vote at said meeting and any adjournment thereof upon the Annual Meetingmatters specified and upon such other matters as may be properly brought before the meeting or any adjournment thereof, conferring authority upon such true and lawful attorneys to vote in their discretion on such other matters as may properly come before the meeting and revoking any proxy heretofore given. THE SHARES REPRESENTED BY THIS PROXY WILL BE VOTED AS DIRECTED OR, IF NO DIRECTION IS GIVEN, SHARES WILL BE VOTED IDENTICAL TO THE BOARD OF DIRECTORS RECOMMENDATION. This proxy, when properly executed, will be voted in the manner directed herein. In their discretion, the Named Proxies are authorized to vote upon such other matters that may properly come before the meeting or any adjournment or postponement thereof. You are encouraged to specify your choice by marking the appropriate box (SEE REVERSE SIDE) but you need not mark any box if you wish to vote in accordance with the Board of ShareholdersDirectors’ recommendation. The Named Proxies cannot vote your shares unless you sign (on the reverse side) and return this card. PLEASE BE SURE TO SIGN AND DATE THIS PROXY CARD AND MARK ON THE REVERSE SIDE Copyright © 2021 Mediant Communications Inc. All Rights Reserved


THE BOARD OF DIRECTORS RECOMMENDS TO VOTE: FOR ON PROPOSAL(S) 1, 2, 3, 4, 5 Please mark vote as indicated in this example PROPOSAL01. Election of Directors To vote for all directors mark here: 1.01 Dennis L. Brand 1.02 C.L. Craig, Jr. 1.03 F. Ford Drummond 1.04 Joseph Ford 1.05 Joe R. Goyne 1.06 David R. Harlow 1.07 William 0. Johnstone 1.08 Frank Keating 1.09 Bill G. Lance 1.10 David R. Lopez 1.11 William Scott Martin 1.12 Tom H. McCasland, Ill 1.13 David E. Rainbolt 1.14 H.E. Rainbolt 1.15 Robin Roberson 1.16 Darryl W. Schmidt 1.17 Natalie Shirley 1.18 Michael K. Wallace 1.19 Gregory G. Wedel 1.20 G. Rainey Williams, Jr. FOR YOUR VOTE WITHHOLD PROPOSAL 6. In their discretion, the named proxies are authorized to vote in accordance with their own judgment upon such other matters as may properly come before the Annual Meeting. YOUR VOTE 2. To amend the BancFirst Corporation Stock Option Plan to increase the number of shares of common stock authorized to be granted to 300,000 shares. FOR AGAINST ABSTAIN 3. To amend the BancFirst Corporation Non-Employee Directors' Stock Option Plan to increase the number of shares of common stock authorized to be granted to 50,000 shares. 4. To amend the BancFirst Corporation Directors' Deferred Stock Compensation Plan to increase the number of shares of common stock authorized to be granted to 40,000 shares. 5. To ratify the appointment of BKD, LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2021. Authorized Signatures - Must be completed for your instructions to be executed. Please sign exactly as your name(s) appears on your account. If held atin joint tenancy, all persons should sign. Trustees, administrators, etc., should include title and authority. Corporations should provide full name of corporation and title of authorized officer signing the Skirvin Hilton Hotel, 1 Park Avenue (the  corner of Park Avenue and Broadway), Oklahoma City, Oklahoma 73102, on Thursday, May  23, 2019, at 9:00 a.m. and at any and all adjournments thereof on the reverse side: (CONTINUED AND TO BE SIGNED ON THE OTHER SIDE)  Proxy/Vote Form. Signature (and Title if applicable) Date Signature (if held jointly) Date