BancFirst Announces Agreement To Sell Assets And Liabilities To AmeriState Bank

Rhea-AI Summary

BancFirst Corporation (NASDAQ GS:BANF) announced an agreement to sell approximately $20 million in loans and $38 million in deposits from its Hugo, Oklahoma branch to AmeriState Bank in Atoka, Oklahoma. This transaction, set to complete in the first quarter of 2021, is pending regulatory approval. CEO Darryl Schmidt emphasized the difficulty in supporting the Hugo community due to its distance from other branches, while AmeriState's CEO, Charles McCall, expressed excitement about acquiring established customers and staff in the area.

Positive

• Strategic divestiture of non-core assets to focus on key markets.
• AmeriState Bank expected to provide better local support for customers in Hugo.

Negative

• Sale may indicate a retreat from less profitable regions, potentially impacting market perception.
• Loss of customer base in Hugo could affect overall deposit and loan metrics.

OKLAHOMA CITY, Oct. 1, 2020 /PRNewswire/ -- BancFirst Corporation (NASDAQ GS:BANF) today announced that its principal subsidiary bank, BancFirst, has entered into an agreement to sell approximately $20 million in loans and $38 million in deposits from its Hugo, Oklahoma branch to AmeriState Bank in Atoka, Oklahoma. The transaction is scheduled to be completed during the first quarter of 2021 and is subject to regulatory approval.

Darryl Schmidt, CEO of BancFirst stated, "We have been honored to be part of the Hugo community for decades. While we are proud of the service provided by dedicated employees there, Hugo remains nearly 2 hours away from our next closest location. That has made it difficult for us to be as supportive as we would have liked. The McCall family is an outstanding banking family.  Since Hugo is in their back yard, we know they will take good care of these customers and employees."

Chuck Partin BancFirst Hugo President stated, "BancFirst has always been an important part of this community. It has been a pleasure working for one of the best banks in America. However, joining a family owned banking concern whose focus is on Southeast Oklahoma and Northeast Texas is exciting. I've known the banking McCall family for nearly 30 years and look forward to working with them."

Charles McCall, Chairman and CEO of AmeriState, said, "We are excited to make this acquisition in Hugo, which is in the primary service area we have banked for nearly 115 years.  BancFirst is a premier banking entity, and we know we will be acquiring great customers and a great staff in a great southeastern Oklahoma community."

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SOURCE BancFirst

FAQ

What assets is BancFirst selling to AmeriState Bank?

BancFirst is selling approximately $20 million in loans and $38 million in deposits from its Hugo branch.

When is the BancFirst and AmeriState transaction expected to be completed?

The transaction is scheduled to be completed during the first quarter of 2021, pending regulatory approval.

Why is BancFirst selling its Hugo branch assets?

BancFirst's CEO mentioned challenges in supporting the Hugo community due to its distance from other branches.

Who will take over the customers from BancFirst's Hugo branch?

AmeriState Bank will take over the customers and staff from BancFirst's Hugo branch.