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Stock-Based Compensation | 12 Months Ended
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Dec. 31, 2023
Share-Based Payment Arrangement [Abstract] |
Stock-Based Compensation | (13) STOCK-BASED COMPENSATION On May 25, 2023, the shareholders of the Company adopted the BancFirst Corporation 2023 Restricted Stock Unit Plan (the "RSU Plan"). The RSU Plan was effective as of June 1, 2023 and for a period of ten years thereafter. The RSU Plan will continue in effect after such ten-year period until all matters relating to the payment of awards and administration of the RSU Plan have been settled. At December 31, 2023 there were 467,925 shares available for future grants. The restricted stock units ("RSU's") vest beginning two years from the date of grant at the rate of 20% per year for five years. The RSUs are settled and distributed as of each vesting date. The fair value of each RSU granted is equal to the market price of the Company’s stock at the date of grant. The following table is a summary of the activity under the Company's RSU plan.
|  |  |  |  | Wgtd. Avg. |
|  | Restricted |  |  | Grant Date |
|  | Stock Units |  |  | Fair Value |
Year Ended December 31, 2023 |  |  |  |  |  |
Nonvested at December 31, 2022 |  |  | — |  |  |  |
Granted |  |  | 32,075 |  |  | $ | 87.23 |
Nonvested at December 31, 2023 |  |  | 32,075 |  |  |  |
The Company has had the BancFirst Corporation Directors’ Deferred Stock Compensation Plan (the “Deferred Stock Compensation Plan”) since May 1999. As of December 31, 2023, there are 18,186 shares available for future issuance under the Deferred Stock Compensation Plan. The Deferred Stock Compensation Plan will terminate on December 31, 2024, if not extended. Under the plan, directors and members of the community advisory boards of the Company and its subsidiaries may defer up to 100% of their board fees. They are credited for each deferral with a number of stock units based on the current market price of the Company’s stock, which accumulate in an account until such time as the director or community board member terminates serving as a board member. Shares of common stock of the Company are then distributed to the terminating director or community board member based upon the number of stock units accumulated in his or her account. There were 18,136 and 30,982 shares of common stock distributed from the Deferred Stock Compensation Plan during the years ended December 31, 2023 and 2022, respectively. A summary of the accumulated stock units is as follows:
|  | December 31, |
|  | 2023 |  |  | 2022 |
Accumulated stock units |  |  | 119,575 |  |  |  | 129,609 |
Average price |  | $ | 40.03 |  |  | $ | 34.91 |
The Company had the BancFirst Corporation Stock Option Plan (the “Employee Plan”), which was terminated on June 1, 2023. The remaining options will continue to vest and are exercisable beginning four years from the date of grant at the rate of 25% per year for four years, and expire no later than the end of fifteen years from the date of grant. The Company had the BancFirst Corporation Non-Employee Directors’ Stock Option Plan (the “Non-Employee Directors’ Plan”), which was terminated on June 1, 2023. The remaining options will continue to vest and are exercisable beginning one year from the date of grant at the rate of 25% per year for four years, and expire no later than the end of fifteen years from the date of grant. The following table is a summary of the activity under both the Employee Plan and the Non-Employee Directors’ Plan:
|  |  |  |  |  |  |  | Wgtd. Avg. |  |  |
|  |  |  |  | Wgtd. Avg. |  |  | Remaining |  | Aggregate |
|  |  |  |  | Exercise |  |  | Contractual |  | Intrinsic |
|  | Options |  |  | Price |  |  | Term |  | Value |
|  | (Dollars in thousands, except option data) |
Year Ended December 31, 2023 |  |  |  |  |  |  |  |  |  |  |
Outstanding at December 31, 2022 |  |  | 1,310,290 |  |  | $ | 52.51 |  |  |  |  |  |
Options exercised |  |  | (60,024 | ) |  |  | 34.83 |  |  |  |  |  |
Options canceled, forfeited, or expired |  |  | (8,875 | ) |  |  | 86.42 |  |  |  |  |  |
Outstanding at December 31, 2023 |  |  | 1,241,391 |  |  |  | 53.12 |  |  | 9.70 Yrs |  | $ | 54,882 |
Exercisable at December 31, 2023 |  |  | 524,016 |  |  |  | 34.53 |  |  | 6.39 Yrs |  | $ | 32,908 |
Year Ended December 31, 2022 |  |  |  |  |  |  |  |  |  |  |
Outstanding at December 31, 2021 |  |  | 1,303,250 |  |  | $ | 40.90 |  |  |  |  |  |
Options granted |  |  | 278,500 |  |  |  | 87.13 |  |  |  |  |  |
Options exercised |  |  | (241,460 | ) |  |  | 28.06 |  |  |  |  |  |
Options canceled, forfeited, or expired |  |  | (30,000 | ) |  |  | 66.31 |  |  |  |  |  |
Outstanding at December 31, 2022 |  |  | 1,310,290 |  |  |  | 52.51 |  |  | 8.73 Yrs |  | $ | 46,741 |
Exercisable at December 31, 2022 |  |  | 489,540 |  |  |  | 30.82 |  |  | 6.80 Yrs |  | $ | 28,082 |
The following table has additional information regarding options exercised under both the Employee Plan and the Non-Employee Directors’ Plan:
|  | Year Ended December 31, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
|  | (Dollars in thousands) |
Total intrinsic value of options exercised |  | $ | 3,055 |  |  | $ | 14,837 |  |  | $ | 9,264 |
Cash received from options exercised |  |  | 2,090 |  |  |  | 6,776 |  |  |  | 5,015 |
Tax benefit realized from options exercised |  |  | 734 |  |  |  | 3,567 |  |  |  | 2,360 |
The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model and is based on certain assumptions including risk-free rate of return, dividend yield, stock price volatility and the expected term. The fair value of each option is expensed over its vesting period. The risk-free interest rate is determined by reference to the spot zero-coupon rate for the U.S. Treasury security with a maturity similar to the expected term of the options. The dividend yield is the expected yield for the expected term. The stock price volatility is estimated from the recent historical volatility of the Company’s stock. The expected term is estimated from the historical option exercise experience. The Company accounts for forfeitures as they occur. No stock options were granted during the year ended December 31, 2023. T he following table shows the assumptions used for computing stock-based compensation expense under the fair value method on options granted during the periods presented:
|  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |
Weighted average grant-date fair value per share of options granted |  | $ | 31.90 |  |  | $ | 21.16 |
Risk-free interest rate |  | 1.75 to 4.17% |  |  | 1.30 to 1.74% |
Dividend yield |  | 2.00% |  |  | 2.00% |
Stock price volatility |  | 34.61 to 35.60% |  |  | 35.55 to 36.39% |
Expected term |  | 10 Yrs |  |  | 10 Yrs |
The Company currently uses newly issued shares for stock option exercises and restricted stock units, but reserves the right to use shares purchased under the Company’s Stock Repurchase Program (the “SRP”) in the future. Although not required or expected, the Company may settle some options or restricted stock units in cash on a limited basis at the discretion of the Company. During the years ended December 31, 2023 and 2022, the Company had no cash settlements. During the year ended December 31, 2021, the Company had cash settlements for 121,330 shares for a total net cash settlement of options of $5.5 million that did not increase the outstanding shares of the Company. Stock-based compensation expense is charged to salaries and benefits expense on the Consolidated Statements of Comprehensive Income. The components of s tock-based compensation expense for all share-based compensation plans and related tax benefits are as follows:
|  | Year Ended December 31, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
|  | (Dollars in thousands) |
Stock-based compensation expense |  | $ | 2,999 |  |  | $ | 1,941 |  |  | $ | 2,133 |
Tax benefit |  |  | 721 |  |  |  | 467 |  |  |  | 513 |
Stock-based compensation expense, net of tax |  | $ | 2,278 |  |  | $ | 1,474 |  |  | $ | 1,620 |
The Company will continue to amortize the unearned stock-based compensation expense over the remaining vesting period of approximately five years for unvested stock options and six years for unvested RSU's. The following table shows the unearned stock-based compensation expense for unvested stock options and unvested RSU's:
|  | December 31, 2023 |
|  | (Dollars in thousands) |
Unearned stock-based compensation expense for unvested stock options |  | $ | 10,316 |
Unearned stock-based compensation expense for unvested RSU's |  |  | 2,672 |

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