BancFirst (BANF) 8-K Bancfirst Corporation Reports Third Quarter Earnings

Exhibit 99.1

BANCFIRST CORPORATION REPORTS THIRD QUARTER EARNINGS

OKLAHOMA CITY, October 21, 2021 /PRNewswire/ -- BancFirst Corporation (NASDAQ GS:BANF) reported net income of $38.8 million, or $1.16 diluted earnings per share, for the third quarter of 2021 compared to net income of $20.9 million, or $0.63 diluted earnings per share, for the third quarter of 2020. The Company recorded a provision for credit losses of $1.5 million for the three months ended September 30, 2021 compared to a provision for credit losses of $18.7 million for the three months ended September 30, 2020. Net income for the nine months ended September 30, 2021 was $129.5 million, or $3.88 diluted earnings per share, compared to $64.2 million, or $1.94 diluted earnings per share, for the nine months ended September 30, 2020. The Company recorded a net benefit from reversal of provisions for credit losses of $8.5 million for the nine months ended September 30, 2021 compared to a provision for credit losses of $57.7 million for the nine months ended September 30, 2020.

BancFirst Corporation Executive Chairman David Rainbolt commented, “Recently, COVID cases have begun to decline in Oklahoma, but continue to impact some businesses. As a result, our revised quarterly economic scenario supports a stable reserve. Consequently, the provision was very slight this quarter. We would anticipate the economic effects of the pandemic to wane more rapidly over the next quarter which would imply a lower reserve going forward.”

The Company’s net interest income for the third quarter of 2021 increased to $80.2 million compared to $75.9 million for the third quarter of 2020, as a result of an increase of $6.1 million in fee income from Paycheck Protection Program (PPP) loan forgiveness. The net interest margin for the quarter was 3.09% compared to 3.40% a year ago. Noninterest income for the quarter totaled $39.8 million, compared to $34.6 million last year. The increase in noninterest income was attributable to $2.9 million in rental income from other real estate property, a $2.1 million increase in income from debit card interchange fees and a $1.5 million increase in insurance commissions. Noninterest expense for the quarter increased to $70.2 million compared to $66.1 million last year, because of the increase in approximately $2.0 million related to other real estate property operating costs and $1.0 million in net occupancy and depreciation primarily from the Company’s new corporate headquarters. The Company’s effective tax rate was 19.7% compared to 18.4% for the third quarter of 2020.

At September 30, 2021, the Company’s total assets were $11.3 billion, an increase of $2.1 billion from December 31, 2020. Loans totaled $6.0 billion, a decrease of $410.3 million from December 31, 2020 stemming from a net decrease of approximately $451.5 million in PPP loans and approximately $21 million of loans that were sold with the Company’s Hugo, Oklahoma branch, which were partially offset by approximately $149 million of acquired loans from the First National Bank and Trust Company of Vinita, Oklahoma. Deposits totaled $10.0 billion, an increase of $1.9 billion from December 31, 2020. The increase in assets and deposits was predominantly related to PPP and other government stimulus payments. At September 30, 2021, the balance of PPP loans was $201.2 million. The Company’s total stockholders’ equity was $1.1 billion, an increase of $79.0 million over December 31, 2020. Off-balance sheet sweep accounts totaled $2.7 billion at September 30, 2021 compared to $2.8 billion at December 31, 2020.

Nonaccrual loans represent 0.44% of total loans at September 30, 2021, down from 0.58% at year-end 2020. Net charge-offs for the quarter were 0.01% of average loans, compared to 0.03% in the third quarter of 2020. The allowance for credit losses to total loans was 1.43% at September 30, 2021 compared to 1.42% at year-end 2020, and the allowance for credit losses to nonaccrual loans was 324.96% compared to 243.35% at year-end 2020. At September 30, 2021, the Company’s nonaccrual loans decreased $10.9 million from year-end 2020, as a result of the resolution of several loans, which was offset by $7.2 million of nonaccrual loans acquired from The First National Bank and Trust Company of Vinita, Oklahoma. At September 30, 2021, the Company’s other real estate owned (OREO) increased $6.8 million from December 31, 2020, and included approximately $4.0 million from the repossession of one commercial real estate property, $2.4 million from the decommissioning of the Company’s previous headquarters, and approximately $600,000 acquired from The First National Bank and Trust Company of Vinita, Oklahoma.

BancFirst Corporation CEO David Harlow commented, “Fees related to ongoing PPP loan forgiveness and a year-to-date negative provision have allowed for outsized EPS through the first nine months of the year. For the remainder of this year and into 2022, our challenge will be to grow loans and stabilize our margin while continuing to build upon and expand our non-interest and fee based revenues.”

BancFirst Corporation (the Company) is an Oklahoma based financial services holding company. The Company operates two subsidiary banks, BancFirst, an Oklahoma state-chartered bank with 108 banking locations serving 59 communities across Oklahoma, and Pegasus Bank, with 3 banking locations in Dallas, TX. More information can be found at www.bancfirst.bank.

The Company may make forward-looking statements within the meaning of Section 27A of the securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 with respect to earnings, credit quality, corporate objectives, interest rates and other financial and business matters. Forward-looking statements include estimates and give management’s current expectations or forecasts of future events. The Company cautions readers that these forward-looking statements are subject to numerous assumptions, risks and uncertainties, including economic

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conditions, the performance of financial markets and interest rates; legislative and regulatory actions and reforms; competition; as well as other factors, all of which change over time. Actual results may differ materially from forward-looking statements.

For additional information call:

Kevin Lawrence, Chief Financial Officer at (405) 270-1003 or

David Harlow, Chief Executive Officer at (405) 270-1082.

BancFirstCorporation

Summary Financial Information

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

	2021			2021			2021			2020			2020
	3rd Qtr			2nd Qtr			1st Qtr			4th Qtr			3rd Qtr
Condensed Income Statements:
Net interest income	$	80,190		$	82,363		$	77,206		$	79,535		$	75,852
Provision for (benefit from) credit losses		1,483			(9,949	)		—			4,992			18,740
Non-interest income:
Trust revenue		3,210			3,264			3,102			2,976			3,131
Service charges on deposits		21,706			20,524			19,100			19,796			19,078
Securities transactions		150			172			95			156			—
Income from sales of loans		1,594			2,133			2,010			1,852			1,873
Insurance commissions		6,666			5,015			5,989			5,680			5,197
Cash management		3,127			3,068			3,003			3,135			3,701
Other		3,333			10,442			6,636			1,825			1,595
Total noninterest income		39,786			44,618			39,935			35,420			34,575
Non-interest expense:
Salaries and employee benefits		42,267			41,992			39,577			40,750			41,995
Occupancy expense, net		5,086			4,528			4,348			4,533			4,503
Depreciation		4,207			4,133			3,877			3,779			3,795
Amortization of intangible assets		755			809			793			915			968
Data processing services		1,734			1,660			1,678			1,763			1,669
Net expense from other real estate owned		1,810			3,357			1,510			420			196
Marketing and business promotion		1,796			1,648			1,879			1,671			1,485
Deposit insurance		846			766			876			857			723
Other		11,713			15,130			10,425			10,923			10,749
Total noninterest expense		70,214			74,023			64,963			65,611			66,083
Income before income taxes		48,279			62,907			52,178			44,352			25,604
Income tax expense		9,529			14,715			9,658			8,994			4,714
Net income	$	38,750		$	48,192		$	42,520		$	35,358		$	20,890
Per Common Share Data:
Net income-basic	$	1.18		$	1.47		$	1.30		$	1.08		$	0.64
Net income-diluted		1.16			1.45			1.27			1.06			0.63
Cash dividends declared		0.36			0.34			0.34			0.34			0.34
Common shares outstanding		32,572,217			32,784,513			32,771,013			32,719,852			32,679,191
Average common shares outstanding -
Basic		32,744,104			32,779,227			32,756,852			32,690,296			32,668,789
Diluted		33,267,955			33,405,923			33,408,116			33,275,550			33,168,938
Performance Ratios:
Return on average assets		1.37	%		1.79	%		1.69	%		1.45	%		0.86	%
Return on average stockholders’ equity		13.42			17.42			15.90			13.25			7.89
Net interest margin		3.09			3.32			3.36			3.55			3.40
Efficiency ratio		58.52			58.29			55.46			57.08			59.84

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BancFirstCorporation
Summary Financial Information
(Dollars in thousands, except per share and share data - Unaudited)
	Nine months ended
	September 30,
	2021			2020
Condensed Income Statements:
Net interest income	$	239,759		$	227,133
(Benefit from) provision for credit losses		(8,466	)		57,656
Non-interest income:
Trust revenue		9,576			10,154
Service charges on deposits		61,330			54,642
Securities transactions		417			(545	)
Income from sales of loans		5,737			4,215
Insurance commissions		17,670			15,316
Cash management		9,198			12,276
Other		20,411			5,744
Total noninterest income		124,339			101,802
Non-interest expense:
Salaries and employee benefits		123,836			123,977
Occupancy expense, net		13,962			11,888
Depreciation		12,217			10,830
Amortization of intangible assets		2,357			2,900
Data processing services		5,072			4,990
Net income (expense) from other real estate owned		6,677			(1,951	)
Marketing and business promotion		5,323			5,325
Deposit insurance		2,488			1,224
Other		37,268			32,936
Total noninterest expense		209,200			192,119
Income before income taxes		163,364			79,160
Income tax expense		33,902			14,932
Net income	$	129,462		$	64,228
Per Common Share Data:
Net income-basic	$	3.95		$	1.97
Net income-diluted		3.88			1.94
Cash dividends declared		1.04			0.98
Common shares outstanding		32,572,217			32,679,191
Average common shares outstanding -
Basic		32,760,015			32,666,554
Diluted		33,358,837			33,190,294
Performance Ratios:
Return on average assets		1.61	%		0.93	%
Return on average stockholders’ equity		15.54			8.24
Net interest margin		3.25			3.58
Efficiency ratio		57.46			58.41

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BancFirstCorporation
Summary Financial Information
(Dollars in thousands, except per share and share data - Unaudited)
	2021			2021			2021			2020			2020
	3rd Qtr			2nd Qtr			1st Qtr			4th Qtr			3rd Qtr
Balance Sheet Data:
Total assets	$	11,302,771		$	11,015,287		$	10,549,305		$	9,212,357		$	9,618,868
Interest-bearing deposits with banks		3,836,809			3,373,099			2,788,316			1,336,394			1,609,462
Debt securities		529,484			563,771			520,543			555,196			596,941
Total loans		6,037,886			6,207,262			6,380,108			6,448,225			6,660,694
Allowance for credit losses		(86,463	)		(83,963	)		(90,860	)		(91,366	)		(106,126	)
Deposits		9,992,044			9,728,389			9,371,940			8,064,704			8,495,891
Stockholders' equity		1,146,874			1,131,591			1,094,671			1,067,885			1,043,752
Book value per common share		35.21			34.52			33.40			32.64			31.94
Tangible book value per common share (non-GAAP)(1)		30.04			29.35			28.27			27.47			26.74
Balance Sheet Ratios:
Average loans to deposits		61.56	%		65.36	%		70.84	%		77.02	%		78.55	%
Average earning assets to total assets		92.13			92.01			91.54			91.82			91.99
Average stockholders' equity to average assets		10.22			10.25			10.64			10.91			10.90
Asset Quality Data:
Past due loans	$	5,186		$	4,386		$	5,282		$	4,802		$	6,412
Nonaccrual loans (5)		26,607			29,802			35,326			37,545			82,385
Restructured loans		7,073			7,485			7,801			7,784			2,837
Total nonperforming and restructured loans		38,866			41,673			48,409			50,131			91,634
Other real estate owned and repossessed assets		39,060			40,183			30,320			32,480			4,939
Total nonperforming and restructured assets		77,926			81,856			78,729			82,611			96,573
Nonaccrual loans to total loans		0.44	%		0.48	%		0.55	%		0.58	%		1.24	%
Nonaccrual loans to total Non-PPP loans (non-GAAP)(3)		0.46			0.51			0.62			0.65			1.41
Nonperforming and restructured loans to total loans		0.64			0.67			0.76			0.78			1.38
Nonperforming and restructured loans to total Non-PPP loans (non-GAAP)(3)		0.67			0.71			0.85			0.86			1.57
Nonperforming and restructured assets to total assets		0.69			0.74			0.75			0.90			1.00
Allowance to total loans		1.43			1.35			1.42			1.42			1.59
Allowance to total Non-PPP loans (non-GAAP)(3)		1.48			1.44			1.60			1.58			1.82
Allowance to nonaccrual loans		324.96			281.73			257.20			243.35			128.82
Allowance to nonperforming and restructured loans		222.46			201.48			187.69			182.26			115.81
Net charge-offs to average loans		0.01			0.06			0.01			0.30			0.03
Reconciliation of Tangible Book Value Per Common Share (non-GAAP)(2):
Stockholders' equity	$	1,146,874		$	1,131,591		$	1,094,671		$	1,067,885		$	1,043,752
Less goodwill		149,922			149,922			149,922			149,922			149,922
Less intangible assets, net		18,325			19,283			18,206			18,999			19,914
Tangible stockholders’ equity (non-GAAP)	$	978,627		$	962,386		$	926,543		$	898,964		$	873,916
Common shares outstanding		32,572,217			32,784,513			32,771,013			32,719,852			32,679,191
Tangible book value per common share (non-GAAP)	$	30.04		$	29.35		$	28.27		$	27.47		$	26.74
(1) Refer to the “Reconciliation of Tangible Book Value per Common Share (non-GAAP)” Table.
(2) Tangible book value per common share is stockholders’ equity less goodwill and intangible assets, net, divided by common shares outstanding. This amount is a non-GAAP financial measure but has been included as it is considered to be a critical metric with which to analyze and evaluate the financial condition and capital strength of the Company. This measure should not be considered a substitute for operating results determined in accordance with GAAP.
Reconciliation of Non-PPP loan ratios (non-GAAP)(4):
Total loans	$	6,037,886		$	6,207,262		$	6,380,108		$	6,448,225		$	6,660,694
Less PPP loans		201,208			368,620			713,714			652,693			831,703
Total Non-PPP loans (non-GAAP)	$	5,836,678		$	5,838,642		$	5,666,394		$	5,795,532		$	5,828,991
Nonaccrual loans (5)		26,607			29,802			35,326			37,545			82,385
Nonaccrual loans to total Non-PPP loans (non-GAAP)		0.46	%		0.51	%		0.62	%		0.65	%		1.41	%
Total nonperforming and restructured loans		38,866			41,673			48,409			50,131			91,634

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Nonperforming and restructured loans to total Non-PPP loans (non-GAAP)	0.67	%	0.71	%	0.85	%	0.86	%	1.57	%
Allowance for credit losses	(86,463	)	(83,963	)	(90,860	)	(91,366	)	(106,126	)
Allowance to total Non-PPP loans (non-GAAP)	1.48	%	1.44	%	1.60	%	1.58	%	1.82	%
(3) Refer to the “Reconciliation of Non-PPP loan ratios (non-GAAP)” Table.
(4) Nonaccrual loans to total Non-PPP loans is nonaccrual loans, divided by total loans less Paycheck Protection Program (PPP) loans. Nonperforming and restructured loans to total Non-PPP loans is nonperforming and restructured loans, divided by total loans less PPP loans. Allowance to total Non-PPP loans is allowance for credit losses, divided by total loans less PPP loans. These amounts are non-GAAP financial measures but have been included as they are considered critical metrics with which to analyze and evaluate the financial condition and capital strength of the Company. These measures should not be considered substitutes for operating results determined in accordance with GAAP.
(5) Government Agencies guarantee approximately $3.1 million of nonaccrual loans at September 30, 2021.

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BancFirst Corporation

Consolidated Average Balance Sheets

And Interest Margin Analysis

Taxable Equivalent Basis

(Dollars in thousands - Unaudited)

	Three Months Ended								Nine Months Ended
	September 30, 2021								September 30, 2021
				Interest		Average						Interest		Average
	Average			Income/		Yield/			Average			Income/		Yield/
	Balance			Expense		Rate			Balance			Expense		Rate
ASSETS
Earning assets:
Loans	$	6,103,533		$	80,370		5.22	%	$	6,267,176		$	240,733	5.14		%
Debt securities – taxable		536,690			1,484		1.10			531,109			4,779		1.20
Debt securities – tax exempt		6,336		45		2.83				13,530		222			2.20
Interest bearing deposits with banks and FFS		3,682,313			1,441		0.16			3,064,852			2,861		0.12
Total earning assets		10,328,872			83,340		3.20			9,876,667			248,595	3.37
Nonearning assets:
Cash and due from banks		269,153								270,724
Interest receivable and other assets		696,567								688,223
Allowance for credit losses		(83,969	)							(89,116	)
Total nonearning assets		881,751								869,831
Total assets	$	11,210,623							$	10,746,498
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest bearing liabilities:
Transaction deposits	$	881,043		$	161	0.07		%	$	835,363		$	465	0.07		%
Savings deposits		3,825,687			989		0.10			3,675,121			3,034	0.11
Time deposits		659,490			838		0.50			658,306			2,814	0.57
Short-term borrowings		2,713			—		0.10			2,595		1			0.07
Subordinated debt		85,964			1,031	4.76				46,957			2,100	5.98
Total interest bearing liabilities		5,454,897			3,019		0.22			5,218,342			8,414	0.22
Interest free funds:
Noninterest bearing deposits		4,547,944								4,363,925
Interest payable and other liabilities		61,794								50,469
Stockholders’ equity		1,145,988								1,113,762
Total interest free funds		5,755,726								5,528,156
Total liabilities and stockholders’ equity	$	11,210,623							$	10,746,498
Net interest income				$	80,321							$	240,181
Net interest spread							2.98	%							3.15	%
Effect of interest free funds							0.11	%							0.10	%
Net interest margin							3.09	%						3.25		%

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