BancFirst : Quarterly Meeting Presentation

BancFirst Corporation Profile

Relationship Banking

• 165,000 retail households and 38,000 commercial relationships
• Largest state chartered bank in Oklahoma
• Overwhelmingly funded by core deposits
• 107 locations in 58 Oklahoma communities including the MSAs of Oklahoma City, Tulsa, Muskogee and Lawton
• Pegasus Bank adds three locations in Dallas

Commercial Focus in MSAs

• Super Community Bank focused on providing a full range of banking services to small to medium sized businesses and their owners, managers and employees using a relationship banking approach

Specialty Expertise

• SBA lending - largest producer in the state for over 25 consecutive years
• Cash Management - $2.0 billion in sweeps
• Trust assets over $6.4 billion
• Insurance Agency specializing in commercial lines - 3rdlargest in Oklahoma

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BancFirst Corporation Profile

Conservative Credit Culture

• Aggressive loan review function; proactive portfolio management
• Historically low problem loan and charge off ratios

Acquisition and Integration Strategy

• Communities with a diversified employment base and reasonable growth
• Disciplined analysis, pricing and structuring of each transaction
• Outstanding conversion and assimilation of acquired banks; over 50 transactions completed by management team
• High retention of acquired accounts

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2019 Highlights

• Record earnings of $134.9 million, $4.05 diluted earnings per share
• Acquisition of Pegasus Bank in Texas added $367 million in loans and $595 million in deposits
• • Nonperforming to total assets remained low
  • Efficiency ratio held constant from 57.59% in 2018 to 57.57%

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Pegasus Bank Acquisition

On August 15, 2019 BancFirst Corporation acquired

Dallas, TX based Pegasus Bank

• $624 million in assets, $373 million in loans, and $575 million in deposits
• Pegasus will continue to operate as a separate Texas state charter under BANF with current Board and management.
• Transaction adds the high growth MSA of Dallas, TX into BANF's footprint which marks BANF's first expansion outside of Oklahoma
• Superior growth with5-year CAGR of 17.8% for loans and 15.7% for deposits
• Top-tierprofitability with LTM ROAA of 1.16% and ROAE of 17.4%
• Three strategically situated branch locations in the Park Cities neighborhood of Dallas

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($ in Thousands)

Pegasus Total Deposits

$800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000

$0

6

($ in Thousands)

Pegasus Total Loans

$600,000

$500,000

$400,000

$300,000

$200,000

$100,000

$0

•	Average annual loan growth was 19.0% over the last 10 years.
•	Loan growth in 2019 was 17.0%.	7

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Primary Risk Factors

• Changes to the Oklahoma economy

1. Oil prices

• 1. Commercial real estate
• Threats to noninterest income
• 1. Interchange revenue - payment system changes; consumer regulation

• 1. Overdraft fees - consumer regulationo$10 billion threshold
• Industry move toward paying interest on business checking accounts

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COVID-19 Impact

• Began identification of loan customers impacted byCOVID-19 that resulted in a modification of loan terms and coded these loans in accordance with interagency guidelines.
• As of 4/30/20, 6,572 loans totaling $877 million were coded accordingly.
• Through 4/30/20, a special task force working 24/7 has approved $829 million in loans through the Paycheck Protection Program.
• Implemented an enhanced paid leave program for all employees, added incentive pay for all hourly employees in retail locations, and initiated a childcare stipend for hourly employees at work with school age children at home.
• Although strictly limiting lobby traffic and precisely following CDC guidance, we have kept all banking facilities open as we continue to fulfill the duty of being designated as a critical infrastructure by the Department of Homeland Security.

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Oklahoma Economic Overview

Gross receipts are up 0.6% from this month last year. The impact of the coronavirus pandemic will mark the end of almost three years of economic growth in Oklahoma. 13

Oil Price

$120.00

$100.00

$80.00

$60.00

$40.00

$20.00

$-

Oklahoma Economic Overview

						Energy Prices					Gas Price
																	$7.00
																	$6.00
																	$5.00
																	$4.00
																	$3.00
																	$2.00
																	$1.00
																	$-

Oil		Natural Gas	14

($ in millions)

Total Deposits

$12,000

$10,000

$8,000

$6,000

$4,000

$2,000

$0

Sweeps

Total Deposits

• Average annual deposit growth was 7.2% in the last 10 years.
• Growth from acquisitions was 2.3% compared to 4.9% organic growth.

• BancFirst has a deposit beta of 0.36 in 2018 for all deposits.

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Deposit Mix

Treasury Fund

(MMDA)

32%

Interest-Bearing

Transaction

Accounts, 11%

Community

Banks, 48%

Metro Areas,

52%

Other Savings 8%

CDs < $250,000 7%

CDs > $250,000

2%

Demand

Deposits

40%

Commercial,

32%

Retail, 68%

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Deposit Beta

	0.80%																0.6
	0.70%
	0.60%																0.5
	0.50%
	0.40%																0.4
	0.30%
Thousands)
0.20%																0.3
0.10%
0.00%	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	0.2
-0.10%
($ in
-0.20%	2016	2016	2017	2017	2017	2017	2018	2018	2018	2018	2019	2019	2019	2019	2020	0.1
	-0.30%
	-0.40%																0
	-0.50%
	-0.60%
	-0.70%																-0.1

Cost to Fund Average Earning Assets				Deposit Beta
• Beta of all deposits was 0.14 for 1stquarter 2020 and 0.31 over since
rate changes beginning December 2015 (increase 44 basis points).	17

Delivery Channels

	30,000
	25,000
in Thousands)	20,000
15,000
(Volume
10,000
	5,000
	0
	2015	2016	2017	2018	2019

Mobile App

Teller Transactions

Online Banking

Daily Data Line

Call Center

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POS Transactions

(in thousands)

70,000				250,000
60,000				200,000
50,000				150,000
40,000
30,000				100,000
20,000				50,000
10,000				-
2015	2016	2017	2018	2019

POS Transactions

POS Interchange Income

Number of Demand Deposit Accounts

2015

2016

2017

2018

2019

Consumer Accounts

Commercial Accounts

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($ in Millions)

Total Loans

$7,000

$6,000

$5,000

$4,000

$3,000

$2,000

$1,000

$0

• Average annual loan growth was 6.8% over the last 10 years.
• Loan growth in 2019 was 5.3%.

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Loan Portfolio Composition

RE Constr

RE Constr 1-4Other, 6%

Family, 4%

RE Comm -

Owner

Occupied, 13%

RE Comm -

Investor, 14%

RE 1-4 Family,

19%

Community

Banks, 45%

Metro Areas,

55%

RE Other, 7% Consumer, 4% Agriculture, 2%

Direct Energy, 4%

Indirect Energy,

2%

Other, 6%

Commercial, 19%

Retail, 17%

Commercial,

83%

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COVID-19 Sensitive Industries

	TOTAL LOAN	PERCENTAGE
INDUSTRY	OF TOTAL
AMOUNT
	LOANS
Energy	$464,000,000	7.73%
Agriculture	$386,800,000	6.44%
Medical	$243,200,000	4.05%
Hotel/Motel	$136,900,000	2.28%
Restaurant	$87,300,000	1.45%

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Nonperforming & Restructured Loans

	$70,000						1.20%
	$60,000						1.00%
Thousands)	$50,000						0.80%
$40,000
						0.60%
in	$30,000
($
	$20,000						0.40%
	$10,000						0.20%
	$0						0.00%
	2014	2015	2016	2017	2018	2019	2020

Nonperforming & Restructured Loans				Nonperforming & Restructured to Total Loans

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FDIC Insured Institutions:

Net Charge-Offs to Loans & Leases

3.0%

2.5%

2.0%

1.5%

1.0%

0.5%

0.0%

2010	2011	2012	2013	2014	2015	2016	2017	2018	2019
			US	OK	BANF

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Volume/Rate Analysis

$20,000

$10,000

$0

($10,000)

($20,000)

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Volume Rate

Change in Net Interest Income

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Net Interest Income

	$300	6.00%
	$250	5.00%
Millions)	$200	4.00%
$150	3.00%
($ in
	$100	2.00%
	$50	1.00%
	$0	0.00%

Net Interest Income		Net Interest Margin

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Noninterest Income

	$160,000	70%
	$140,000	60%
	$120,000	50%
thousands)	$100,000	40%
$80,000
	30%
in	$60,000
($
	20%
	$40,000
	$20,000	10%
	$0	0%

Noninterest Income
Noninterest Income as Percentage of Noninterest Expense	27

		Treasury Management		$25,000	Insurance Commissions
	$20,000
thousands)	$15,000		thousands)	$20,000
	$15,000
$10,000
in		in	$10,000
$5,000
($		($	$5,000

	$0	$0
	$7,000	16,000
Millions)in	$6,000	14,000	Assets
	8,000inThousands)
	$5,000	12,000
	$4,000	10,000	Trust
(Assets	$3,000	4,000(Revenue	Revenue
$2,000
		6,000	Trust
	$1,000	2,000
	$0	-	28

Noninterest Income

Service Charges, 9%

Insurance

Commissions, 16%

Interchange Fees, 23%

Cash Management, 12%

Trust Revenue, 10%

Secondary

Mortgage Market,

2%

Other, 5%

Overdraft Fees, 24%

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Earnings Per Share

$4.50 $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00

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Dividend History

$1.40	50.00%
$1.20	45.00%
40.00%
$1.00	35.00%
$0.80	30.00%
	25.00%
$0.60	20.00%
$0.40	15.00%
$0.20	10.00%
5.00%
$0.00	0.00%

Dividends per Share		Payout Ratio

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Capital Ratios

		March 31, 2020
	BancFirst	Pegasus	BancFirst
	(Bank)	(Bank)	Corp
Total Capital/Risk Assets	14.10%	13.31%	14.30%
Common Equity Tier 1/Risk	12.67%	12.58%	12.84%
Assets
Tier 1 Capital/Risk Assets	13.00%	12.58%	13.23%
Leverage Ratio	10.35%	8.83%	10.41%
(Tier 1 Capital/TA)

NOTE: Basel III became effective on 1/1/2015

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Dodd-Frank Impact on

Reaching $10 Billion

• Limitations placed on debit card interchange fees
• • Interchange income expected to be cut in half once $10 billion in assets is reached
• Consumer Financial Protection Bureau (CFPB) examinations
• Continuous monitoring by the Fed
• • Quarterly information requests
  • Increased frequency ofon-site regulators
  • Specific reviews of key risk management areas
  • Annual regulatory inspections
• Company run stress testing monitored by Fed and FDIC

33

Stock Performance vs. the

General Market since IPO

30
	BANF
25	S&P 500
KBW Bank Index
20
15
10
5
-
(5)

• Average increase in shareholder return since IPO has been 10.9% vs. S&P 500 of 9.1% and KBW Bank Index of 5.9%

• BancFirst has a beta of 1.16

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Summary

• Number and quality of both household and commercial core deposit relationships
• Sustained asset quality
• Strong capital
• Exceptional liquidity; high level of core deposit funding; modest rate risk
• Emphasis onnon-interest income
• Invested management
• Acquisition/conversion expertise

• Strong currency

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One of America's Strongest Banks

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Forward-Looking Statements

This presentation contains 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 and other financial information, corporate objectives, and other business matters. Forward-looking statements include estimates and give our current expectations or forecasts of future events. These forward-looking statements are subject to numerous assumptions, risks and uncertainties. Actual results may differ materially. These risks and other factors are described more fully in the Company's Annual Report on Form 10-K for 2019 and other filings with the Securities and Exchange Commission.

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