BancFirst : Latest Earnings Release

FOR IMMEDIATE RELEASE	101 N. Broadway
Oklahoma City, OK 73102
Thursday, January 21, 2021	www.bancfirst.bank

BANCFIRST CORPORATION REPORTS FOURTH QUARTER EARNINGS

BancFirst Corporation (NASDAQ GS:BANF) reported net income of $35.4 million, or $1.06 diluted earnings per share, for the fourth quarter of 2020 compared to net income of $35.5 million, or $1.07 diluted earnings per share, for the fourth quarter of 2019. Net income for the twelve months ended December 31, 2020 was $99.6 million, or $3.00 diluted earnings per share, compared to $134.9 million, or $4.05 diluted earnings per share, for the year ended December 31, 2019. The results for 2020 were negatively impacted by a higher provision for credit losses. Net income for the year ended December 31, 2020 includes the entire year of net income of Pegasus Bank in Dallas, Texas, which was acquired on August 15, 2019, and the income and expenses associated with the purchase of assets and assumption of liabilities on March 5, 2020, from The Citizens State Bank of Okemah. The results for the prior year include Pegasus Bank acquisition related expenses of approximately $3.1 million.

The provision for credit losses for the fourth quarter of 2020 was $5.0 million compared to $1.4 million a year ago and $57.7 million through the first three quarters of 2020. BancFirst Corporation Executive Chairman David Rainbolt commented, "Our provision for credit losses was substantially reduced from previous quarters due to improvements in projected outcomes for the economic effects of the pandemic. The rollout of the vaccine and extension of the Cares Act stimulus, combined with improved energy prices and jobs data, justify a cessation to the outsized provisions seen in prior quarters."

The Company's net interest income for the fourth quarter of 2020 increased to $79.5 million compared to $73.9 million for the fourth quarter of 2019. Net interest income increased for the fourth quarter of 2020 due to loan growth, PPP fee income of approximately $8.0 million and the decrease in interest rates paid on deposits. The net interest margin for the quarter was 3.54% compared to 3.78% a year ago. The Company had net charge-offs for the quarter of 0.30% of average loans, compared to net charge-offs of 0.06% of average loans for the fourth quarter of 2019. Noninterest income for the quarter totaled $35.4 million, compared to $35.5 million last year. Noninterest expense for the quarter totaled $65.6 million compared to $66.3 million last year. Overall noninterest expense decreased during the fourth quarter of 2020 compared to the fourth quarter of 2019 primarily due to $2.3 million of amortization of new market tax credits in 2019. However, deposit insurance, net expense from other real estate owned, net occupancy and depreciation increased during the fourth quarter of 2020 compared to 2019. The Company's effective tax rate was 20.3% compared to 15.0% for the fourth quarter of 2019. The effective tax rate for the fourth quarter of 2019 was lower due to the purchase of tax credits during the quarter.

At December 31, 2020, the Company's total assets were $9.2 billion, an increase of $646.6 million from December 31, 2019. Securities of $555.2 million were up $63.6 million from December 31, 2019. Loans totaled $6.4 billion, an increase of $775.1 million from December 31, 2019. Deposits totaled $8.1 billion, an increase of $581.1 million from the December 31, 2019 total. The increase in assets, loans and deposits were primarily related to the Paycheck Protection Program (PPP) and other government stimulus. At December 31, 2020, the balance of the Paycheck Protection Program loans was $652.7 million. The Company's total stockholders' equity was $1.1 billion, an increase of $62.9 million over December 31, 2019. Off-balance sheet sweep accounts were $2.7 billion at December 31, 2020 compared to $2.0 billion at December 31, 2019.

Nonaccrual loans represented 0.58% of total loans at December 31, 2020, up from 0.32% at year-end 2019, but down from 1.24% at September 30, 2020. Non-performing assets represented 0.90% of total assets at December 31, 2020, up from 0.63% at December 31, 2019 as a result of loan migration from non-accrual loans to other real estate owned (OREO) during the fourth quarter of 2020. The allowance to total loans was 1.42% at December 31, 2020, up from 0.96% at year-end 2019. The allowance to nonaccrual loans was approximately 243% at December 31, 2020, compared to 302% at year-end 2019, and 129% at September 30, 2020.

BancFirst Corporation CEO David Harlow commented, "In a very challenging year the Company was able to report earnings of $3.00 per diluted share while substantially building loan loss reserves, increasing our dividend for the 27th consecutive year and growing total stockholders' equity and tangible book value per share. The outlook for 2021 is certainly better today than we would have projected at the outset of the pandemic; however, many consumers and certain sectors of the economy continue to struggle and the ultimate outcome for many businesses when the stimulus subsides is far from certain."

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 107 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

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matters. Forward-looking statements include estimates and give management's current expectations or forecasts of future events. The Company cautions readers that these forward-looking statements are subject to numerous assumptions, risks and uncertainties, including economic conditions, the performance of financial markets and interest rates; legislative and regulatory actions and reforms; competition; as well as other factors, all of which change over time. Actual results may differ materially from forward-looking statements.

For additional information call:

Kevin Lawrence, Chief Financial Officer at [phone] or

David Harlow, Chief Executive Officer at [phone].

BancFirst Corporation

Summary Financial Information

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

		2020
Condensed Income Statements:		4th Qtr
Net interest income	$	79,535		$
Provision for credit losses		4,992
Non-interest income:
Trust revenue		2,976
Service charges on deposits		19,796
Securities transactions		156
Income from sales of loans		1,852
Insurance commissions		5,680
Cash management		3,135
Other		1,825
Total noninterest income		35,420
Non-interest expense:
Salaries and employee benefits		40,750
Occupancy expense, net		4,533
Depreciation		3,779
Amortization of intangible assets		915
Data processing services		1,763
Net expense from other real estate owned		420
Marketing and business promotion		1,671
Deposit insurance		857
Other		10,923
Total noninterest expense		65,611
Income before income taxes		44,352
Income tax expense		8,994
Net income	$	35,358		$
Per Common Share Data:
Net income-basic	$	1.08		$
Net income-diluted		1.06
Cash dividends declared		0.34
Common shares outstanding		32,719,852
Average common shares outstanding -
Basic		32,690,296
Diluted		33,275,550
Performance Ratios:
Return on average assets		1.45%
Return on average stockholders' equity		13.25
Net interest margin		3.54
Efficiency ratio		57.08

2020

3rd Qtr

75,852 $

18,740

3,131

19,078

-

1,873

5,197

3,701

1,595

34,575

41,995

4,503

3,795

968

1,669

196

1,485

723

10,749

66,083

25,604

4,714

20,890 $

0.64 $

0.63

0.34

32,679,191

32,668,789

33,168,938

0.86%

7.89

3.40

59.84

2020

2nd Qtr

77,208 $

19,333

3,368

16,760

(595)

1,561

4,443

4,255

2,290

32,082

42,226

3,839

3,544

968

1,629

(12)

1,485

365

10,607

64,651

25,306

4,576

20,730 $

0.64 $

0.63

0.32

32,662,691

32,651,262

33,075,493

0.88%

7.99

3.54

59.16

2020

1st Qtr

74,073 $

19,583

3,655

18,804

50

781

5,676

4,320

1,859

35,145

39,756

3,546

3,491

964

1,692

(2,135)

2,355

136

11,580

61,385

28,250

5,642

22,608 $

0.69 $

0.68

0.32

32,646,691

32,679,587

33,287,359

1.07%

8.87

3.82

56.20

2019

4th Qtr

73,939

1,412

3,682

19,938 (9)

1,089

5,076

4,258

1,490

35,524

40,375

3,738

3,355

1,007

1,634

(424)

2,327

147

14,137

66,296

41,755

6,248

35,507

1.09

1.07

0.32

32,694,268

32,673,438

33,366,848

1.66%

13.76

3.78

60.56

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BancFirst Corporation

Summary Financial Information

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

		Twelve months ended
		December 31,
Condensed Income Statements:	2020				2019
Net interest income	$	306,668		$	281,921
Provision for credit losses		62,648			8,287
Non-interest income:
Trust revenue		13,130			13,599
Service charges on deposits		74,438			76,581
Securities transactions		(389)		812
Income from sales of loans		6,067			3,619
Insurance commissions		20,996			20,296
Cash management		15,411			16,866
Other		7,569			5,456
Total noninterest income		137,222			137,229
Non-interest expense:
Salaries and employee benefits		164,727			153,024
Occupancy expense, net		16,421			12,704
Depreciation		14,609			12,623
Amortization of intangible assets		3,815			3,366
Data processing services		6,753			5,843
Net expense from other real estate owned		(1,531)		(785)
Marketing and business promotion		6,996			8,554
Deposit insurance		2,081			1,143
Other		43,859			44,829
Total noninterest expense		257,730			241,301
Income before income taxes		123,512			169,562
Income tax expense		23,926			34,683
Net income	$	99,586		$	134,879
Per Common Share Data:
Net income-basic	$	3.05		$	4.13
Net income-diluted		3.00			4.05
Cash dividends declared		1.32			1.24
Common shares outstanding		32,719,852			32,694,268
Average common shares outstanding -
Basic		32,672,522			32,639,396
Diluted		33,210,952			33,329,844
Performance Ratios:
Return on average assets		1.06%		1.69%
Return on average stockholders' equity		9.52			14.04
Net interest margin		3.57			3.85
Efficiency ratio		58.06			57.57

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BancFirst Corporation

Summary Financial Information

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

		2020			2020			2020			2020			2019
		4th Qtr		3rd Qtr		2nd Qtr		1st Qtr		4th Qtr
Balance Sheet Data:
Total assets	$	9,212,357		$	9,618,868		$	9,612,453		$	8,669,096		$	8,565,758
Interest-bearing deposits with banks		1,336,394			1,609,462			1,583,116			1,356,826			1,646,238
Debt securities		555,196			596,941			608,031			591,987			491,626
Total loans		6,448,225			6,660,694			6,696,856			6,006,065			5,673,144
Allowance for credit losses		(91,366)		(106,126)		(89,500)		(70,080)		(54,238)
Deposits		8,064,704			8,495,891			8,486,671			7,573,200			7,483,635
Stockholders' equity		1,067,885			1,043,752			1,034,199			1,023,380			1,004,989
Book value per common share		32.64			31.94			31.66			31.35			30.74
Tangible book value per common share (non-GAAP)(1)		27.47			26.74			26.43			26.09			25.50
Balance Sheet Ratios:
Average loans to deposits		77.02%		78.55%		79.78%		77.75%		75.83%
Average earning assets to total assets		91.82			91.99			92.23			91.51			91.50
Average stockholders' equity to average assets		10.91			10.90			10.96			12.02			12.04
Asset Quality Data:
Past due loans	$	4,802		$	6,412		$	5,382		$	10,065		$	11,834
Nonaccrual loans (5)		37,545			82,385			49,477			45,181			17,965
Restructured loans		7,784			2,837			3,213			3,158			18,010
Total nonperforming and restructured loans		50,131			91,634			58,072			58,404			47,809
Other real estate owned and repossessed assets		32,480			4,939			4,948			6,001			6,073
Total nonperforming and restructured assets		82,611			96,573			63,020			64,405			53,882
Nonaccrual loans to total loans		0.58%		1.24%		0.74%		0.75%		0.32%
Nonaccrual loans to total Non-PPP loans (non-GAAP)(3)		0.65			1.41			0.84			0.75			0.32
Nonperforming and restructured loans to total loans		0.78			1.38			0.87			0.97			0.84
Nonperforming and restructured loans to total Non-PPP loans		0.86			1.57			0.99			0.97			0.84
(non-GAAP)(3)
Nonperforming and restructured assets to total assets		0.90			1.00			0.66			0.74			0.63
Allowance for credit losses to total loans		1.42			1.59			1.34			1.17			0.96
Allowance for credit losses to total Non-PPP loans (non-		1.58			1.82			1.52			1.17			0.96
GAAP)(3)
Allowance for credit losses to nonaccrual loans		243.35			128.82			180.89			155.11			301.91
Allowance for credit losses to nonperforming and restructured		182.26			115.81			154.12			119.99			113.45
loans
Net charge-offs to average loans		0.30			0.03			0.00			0.02			0.06
Reconciliation of Tangible Book Value Per Common Share
(non-GAAP)(2):
Stockholders' equity	$	1,067,885		$	1,043,752		$	1,034,199		$	1,023,380		$	1,004,989
Less goodwill		149,922			149,922			149,922			149,923			148,604
Less intangible assets, net		18,999			19,914			20,882			21,850			22,608
Tangible stockholders' equity (non-GAAP)	$	898,964		$	873,916		$	863,395		$	851,607		$	833,777
Common shares outstanding		32,719,852			32,679,191			32,662,691			32,646,691			32,694,268
Tangible book value per common share (non-GAAP)	$	27.47		$	26.74		$	26.43		$	26.09		$	25.50

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