BancFirst Profile
BancFirst Corporation operates as a financial holding company.
The company is registered under the Bank Holding Company Act of 1956, as amended (the ‘BHC Act’). It conducts a vast majority of its operating activities through its wholly-owned subsidiary, BancFirst (‘BancFirst’), an Oklahoma state-chartered bank headquartered in Oklahoma City, Oklahoma. The company also conducts operating activities through its wholly-owned subsidiaries, Pegasus Bank (‘Pegasus’), a Texas state-chartered bank headquartered in Dallas, Texas; and Worthington Bank (‘Worthington’), a Texas state-chartered bank headquartered in Arlington, Texas. In addition, the company owns 100% of the common securities of BFC Capital Trust II (a Delaware business trust), 100% of Council Oak Partners LLC, an Oklahoma limited liability company engaging in investing activities and 100% of BancFirst Insurance Services, Inc., an Oklahoma business corporation operating as an independent insurance agency.
BancFirst has various banking locations serving 59 communities throughout Oklahoma, Pegasus has banking locations in the Dallas Metroplex area, and Worthington has locations in the Dallas-Fort Worth Metroplex area.
BancFirst’s strategy focuses on providing a full range of commercial banking services to retail customers and small to medium-sized businesses in both the non-metropolitan trade centers and cities in the metropolitan statistical areas of Oklahoma. BancFirst operates as a ‘super community bank’, managing its community banking offices on a decentralized basis, which permits them to be responsive to local customer needs. In the metropolitan markets served by BancFirst, the company’s strategy is to focus on the needs of local businesses that seek more responsive services than are available at larger institutions.
BancFirst maintains a strong community orientation by, among other things, selecting members of the communities in which BancFirst’s branches operate to local consulting boards that assist in marketing and providing feedback on BancFirst’s products and services to meet customer needs. As a result of the development of broad banking relationships with its customers and community branch network, BancFirst’s lending and investing activities are funded almost entirely by core deposits.
BancFirst maintains centralized control functions, such as operations support, bookkeeping, accounting, loan review, compliance and internal auditing to ensure effective risk management. BancFirst also provides, on a centralized basis, certain specialized financial services that require unique expertise.
BancFirst provides a wide range of retail and commercial banking services, including commercial, real estate, energy, agricultural and consumer lending; depository and funds transfer services; collections; safe deposit boxes; cash management services; trust services; and other services tailored for both individual and corporate customers. BancFirst provides item processing, research and other correspondent banking services to financial institutions and governmental units.
BancFirst’s primary lending activity is the financing of business and industry in its market areas. Its commercial loan customers are generally small to medium-sized businesses engaged in light manufacturing, local wholesale and retail trade, commercial and residential real estate development and construction, services, agriculture and the energy industry. Most forms of commercial lending are offered, including commercial mortgages, other forms of asset-based financing and working capital lines of credit. In addition, BancFirst offers Small Business Administration (‘SBA’) guaranteed loans through BancFirst Commercial Capital, a division established in 1991.
Consumer lending activities of BancFirst consist of traditional forms of financing for automobiles, home equity loans and other personal loans. Residential loans primarily consist of home loans in non-metropolitan areas, which are generally shorter in duration than typical mortgages and reprice within five years.
BancFirst’s range of deposit services include checking accounts, Negotiable Order of Withdrawal (‘NOW’) accounts, savings accounts, money market accounts, sweep accounts, club accounts, individual retirement accounts and certificates of deposit. Overdraft protection and auto draft services are also offered.
Trust services offered through BancFirst’s Trust and Investment Management Division (the ‘Trust Division’) consist primarily of investment management and administration of trusts for individuals, corporations and employee benefit plans. In addition, the Trust Division serves as bond trustee and paying agent for various Oklahoma municipalities and governmental entities.
Insurance services offered through BancFirst Insurance Services, Inc. consists of business and personal insurance, employee benefits, surety bonds and claims and risk management.
BancFirst has the following 100% owned principal subsidiaries: BancFirst Agency, Inc., a credit life insurance agency, BFC-PNC, LLC and BF Brazito, LLC, both operating subsidiaries to hold other real estate owned, BFTower, LLC (which owns a 49% ownership interest in SFPG, LLC, a parking garage, and a 50% ownership interest in ParcFirst@Bricktown, LLC, a surface parking lot). All of these companies are Oklahoma entities.
Pegasus and Worthington's lending activities include private banking, commercial and residential real estate, commercial and industrial and energy loans. They each have a full complement of deposit products, including sweep accounts and securities investment products. They provide a wide range of banking services to individual and corporate customers.
Market Areas
The communities in which BancFirst maintains offices are generally local trade centers throughout Oklahoma.
BancFirst provides a broad line of financial products and services for small to medium-sized businesses and consumers through full service community banking offices.
Operating Segments
The company has six principal business units: BancFirst metropolitan banks, BancFirst community banks, Pegasus, Worthington, other financial services and executive, operations and support. BancFirst metropolitan banks, BancFirst community banks, Pegasus and Worthington offer traditional banking products, such as commercial and retail lending and a full line of deposit accounts. BancFirst metropolitan banks consist of banking locations in the metropolitan Oklahoma City and Tulsa areas. BancFirst community banks consist of banking locations in communities in Oklahoma outside the Oklahoma City and Tulsa metropolitan areas. Pegasus consists of banking locations in the Dallas metropolitan area. Worthington consists of banking locations in the Dallas-Fort Worth-Arlington metropolitan area. Other financial services are specialty product business units including guaranteed small business lending, residential mortgage lending, trust services, securities brokerage, electronic banking and insurance. The executive, operations and support groups represent executive management, operational support and corporate functions that are not allocated to the other business units.
Loans
As of December 31, 2023, the company’s loans included real estate loans, such as commercial real estate owner occupied loans, commercial real estate non-owner occupied loans, construction and development loans < 60 months, construction residential real estate loans < 60 months, residential real estate first lien loans, residential real estate all other loans, and agriculture loans; commercial non-real estate loans; consumer non-real estate loans; and oil and gas loans.
Securities
As of December 31, 2023, the company’s securities portfolio included U.S. treasuries, U.S. federal agencies, mortgage backed securities, states and political subdivisions, asset backed securities; and other securities.
Deposits
As of December 31, 2023, the company’s deposits were noninterest-bearing demand deposits; money market and interest-bearing checking deposits; savings deposits; and time deposits.
Supervision and Regulation
BancFirst is chartered by the state of Oklahoma and at the state level is supervised and regulated by the Oklahoma Banking Department under the Oklahoma Banking Code. Pegasus and Worthington are chartered by the state of Texas and at the state level are supervised and regulated by the Texas Department of Banking.
As a financial holding company and a bank holding company, the company is subject to comprehensive regulation by the Federal Reserve Board under the BHC Act, as amended by the Gramm-Leach-Bliley Act of 1999 (the ‘GLB Act’), the Dodd-Frank Wall Street Reform and Consumer Protection Act (the ‘Dodd-Frank Act’), and other legislation, as well as other federal and state laws governing the banking business. The BHC Act provides generally for regulation of financial holding companies and bank holding companies, such as the company by the Federal Reserve Board, and for functional regulation of banking activities by bank regulators, securities activities by securities regulators, and insurance activities by insurance regulators. Additionally, the company is under the jurisdiction of the Securities and Exchange Commission (‘SEC’) and is subject to the periodic reporting, information, proxy solicitation, insider trading, corporate governance and other restrictions and requirements of the SEC under the Securities Exchange Act of 1934, as amended (the ‘Exchange Act’).
The Federal Reserve Board supervises non-banking activities conducted by companies directly and indirectly owned by the company. In addition, the company’s non-banking subsidiaries are subject to various other laws, regulations, supervision and examination by other regulatory agencies, all of which directly or indirectly affect the operations and management of the company and its ability to make distributions to stockholders.
The company, BancFirst, Pegasus, and Worthington are deemed affiliates of each other within the meaning of the Federal Reserve Act, and covered transactions between affiliates are subject to certain restrictions, including compliance with Sections 23A and 23B of the Federal Reserve Act and their implementing regulations.
The deposits of BancFirst, Pegasus and Worthington are insured by the FDIC. The company is particularly affected by the policies of the Federal Reserve Board, which regulates the supply of money and credit in the United States.
The U.S. Treasury Department has issued a number of implementing regulations, which apply various requirements of the USA Patriot Act of 2001 to financial institutions such as BancFirst, Pegasus and Worthington.
Banks and other financial institutions are subject to numerous laws and regulations intended to protect consumers in their transactions with banks. These laws include the Equal Credit Opportunity Act, the Fair Credit Reporting Act, the Truth in Lending Act, the Truth in Savings Act, the Electronic Fund Transfer Act, the Expedited Funds Availability Act, the Home Mortgage Disclosure Act, the Fair Housing Act, the Real Estate Settlement Procedures Act, the Fair Debt Collection Practices Act, the Service Members Civil Relief Act and these laws’ respective state-law counterparts, as well as state usury laws and laws regarding unfair and deceptive acts and practices. These and other federal laws, among other things, require disclosures of the cost of credit and terms of deposit accounts, provide substantive consumer rights, prohibit discrimination in credit transactions, regulate the use of credit report information, provide financial privacy protections, prohibit unfair, deceptive and abusive practices, restrict the company’s ability to raise interest rates and subject the company to substantial regulatory oversight.
BancFirst is an Oklahoma-chartered state bank. Accordingly, BancFirst’s operations are subject to various requirements and restrictions of Oklahoma state law relating to loans, lending limits, interest rates payable on deposits, investments, mergers and acquisitions, borrowings, dividends, capital adequacy and other matters. However, Oklahoma banking law specifically empowers a state-chartered bank such as BancFirst to exercise the same powers as are conferred upon national banks by the laws of the United States and the regulations and policies of the Office of the Comptroller of the Currency, unless otherwise prohibited or limited by the Oklahoma Banking Commissioner or the Oklahoma State Banking Board.
Pegasus and Worthington are Texas-chartered state banks. Accordingly, their operations are subject to various requirements and restrictions of Texas state law relating to loans, lending limits, interest rates payable on deposits, investments, mergers and acquisitions, borrowings, dividends, capital adequacy and other matters. However, Texas banking law specifically empowers state-chartered banks such as Pegasus and Worthington to exercise the same powers as are conferred upon national banks by the laws of the United States and the regulations and policies of the Office of the Comptroller of the Currency, unless otherwise prohibited or limited by the Texas Banking Commissioner or the Texas Finance Commission. Accordingly, unless a specific provision of Texas law otherwise provides, a state-chartered bank is empowered to conduct all activities that a national bank may conduct.
As a state member bank, BancFirst is subject to primary supervision, periodic examination and regulation by the Oklahoma Banking Department and the Federal Reserve Bank of Kansas City, and Oklahoma law provides that BancFirst must maintain reserves against deposits as required by the FDI Act.
As state member banks, Pegasus and Worthington are subject to primary supervision, periodic examination and regulation by the Texas Department of Banking and the Federal Reserve Bank of Dallas, and Texas law provides that Pegasus and Worthington must maintain reserves against deposits as required by the FDI Act.
The company is subject to the periodic reporting, information, proxy solicitation, insider trading, corporate governance and other requirements and restrictions of the Securities Exchange Act of 1934 and the regulations of the SEC promulgated thereunder as well as listing requirements of the NASDAQ. In addition, the Dodd-Frank Act includes provisions that affect corporate governance and executive compensation at most United States publicly traded companies, including the company.
The company is also subject to the accounting oversight and corporate governance requirements of the Sarbanes-Oxley Act of 2002, including required executive certification of financial presentation; increased requirements for board audit committees and their members; enhanced disclosures of controls and procedures and internal control over financial reporting; enhanced controls over, and reporting of, insider trading and increased penalties for financial crimes and forfeiture of executive bonuses in certain circumstances.
History
The company was founded in 1984. It was incorporated in 1984. The company was formerly known as United Community Corporation and changed its name to BancFirst Corporation in 1988.
