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Item 1. Financial Statements

2025-08-05 compared with 2025-05-09 · 357 added, 184 removed, 991 unchanged (35% of the section changed)

21 unchanged sentences

Total deposits

Short-term borrowings

Accrued interest payable and other liabilities

20 unchanged sentences

Three Months Ended

Six Months Ended

INTEREST INCOME

33 unchanged sentences

NET INCOME PER COMMON SHARE

OTHER COMPREHENSIVE GAIN/(LOSS)

Unrealized gains/(losses) on debt securities, net of (expense)/tax benefit of $( 2,838 ) and $ 728 , respectively

Other comprehensive gain/(loss), net of tax (expense)/benefit of $( 2,838 ) and $ 728 , respectively

OTHER COMPREHENSIVE GAIN

Unrealized income on debt securities, net of tax expense of $ 1,911 , $ 1,263 , $ 4,749 and $ 535 , respectively

Other comprehensive income, net of tax expense of $ 1,911 , $ 1,263 , $ 4,749 and $ 535 , respectively

Comprehensive income

4 unchanged sentences

Three Months Ended

Six Months Ended

Issued at beginning of period

Shares issued for stock options

Shares issued for stock-based compensation plans

Issued at end of period

1 unchanged sentence

Balance at beginning of period

Common stock issued for stock options

Common stock issued for stock-based compensation plans

Stock-based compensation arrangements

13 unchanged sentences

(Dollars in thousands)

Three Months Ended

Six Months Ended

CASH FLOWS FROM OPERATING ACTIVITIES

3 unchanged sentences

Net amortization of securities premiums and discounts

Realized securities losses

Realized securities losses/(gains)

Gain on sales of loans

3 unchanged sentences

Gain on sale of other assets

Increase in interest receivable

Increase/(decrease) in interest receivable

(Decrease)/increase in interest payable

4 unchanged sentences

Net decrease in federal funds sold

Purchases of available for sale debt securities

Proceeds from maturities, calls and paydowns of held for investment debt securities

3 unchanged sentences

Net change in loans

Net (payments)/receipts on derivative asset contracts

Net payments on derivative asset contracts

Purchases of premises, equipment and computer software

4 unchanged sentences

Net change in short-term borrowings

Issuance of common stock in connection with stock options, net

Issuance of common stock in connection with stock-based compensation plans, net

Cash dividends paid

40 unchanged sentences

The Company does not expect adoption of the standard to have a material impact on its consolidated financial statements.

(2) RECENT DEVELOPMENTS, INCLUDING MERGERS AND ACQUISITIONS

On May 20, 2025, the Company entered into an agreement to acquire American Bank of Oklahoma ("ABOK"), a privately held community bank headquartered in Collinsville, Oklahoma.

ABOK has approximately $ 385 million in total assets, $ 280 million in loans, and $ 320 million in deposits.

The transaction is expected to close in the third quarter of 2025, subject to regulatory approvals and

customary closing conditions.

ABOK will operate under its present name until it is merged into BancFirst, which is expected to be in the fourth quarter of 2025.

(3) SECURITIES

The following table summarizes the amortized cost and estimated fair values of debt securities held for investment:

March 31, 2025

June 30, 2025

(Dollars in thousands)

7 unchanged sentences

The following table summarizes the amortized cost and estimated fair values of debt securities available for sale:

March 31, 2025

June 30, 2025

(Dollars in thousands)

12 unchanged sentences

For purposes of the maturity table, mortgage-backed securities, which are not due at a single maturity date, have been presented at their contractual maturity.

March 31, 2025

June 30, 2025

December 31, 2024

14 unchanged sentences

The following table is a summary of the Company’s book value of securities that were pledged as collateral for public funds on deposit, repurchase agreements and for other purposes as required or permitted by law:

March 31, 2025

June 30, 2025

December 31, 2024

1 unchanged sentence

Book value of pledged securities

There were no sales of debt securities and therefore no proceeds from sales or realized securities gains or losses on available for sale debt securities for the three months ended March 31, 2025 or March 31, 2024.

There were no sales of debt securities and therefore no proceeds from sales or realized securities gains or losses on available for sale debt securities for the six months ended June 30, 2025 or June 30, 2024.

Realized gains or losses on debt and equity securities are reported as securities transactions within the noninterest income section of the consolidated statement of comprehensive income.

The following table summarizes debt securities with unrealized losses, segregated by the duration of the unrealized loss, at March 31, 2025 and December 31, 2024 respectively:

The following table summarizes debt securities with unrealized losses, segregated by the duration of the unrealized loss, at June 30, 2025 and December 31, 2024 respectively:

Less than 12 Months

2 unchanged sentences

(Dollars in thousands)

March 31, 2025

June 30, 2025

Available for Sale

10 unchanged sentences

The Company has the ability and intent to hold the debt securities classified as held for investment until they mature, at which time the Company will receive full value for the debt securities.

Furthermore, as of March 31, 2025 and December 31, 2024, the Company also had the ability and intent to hold the debt securities classified as available for sale for a period of time sufficient for a recovery of cost.

Furthermore, as of June 30, 2025 and December 31, 2024, the Company also had the ability and intent to hold the debt securities classified as available for sale for a period of time sufficient for a recovery of cost.

The unrealized losses are due to increases in market interest rates over the yields available at the time the underlying debt securities were purchased.

4 unchanged sentences

Loans held for investment are summarized by portfolio segment as follows:

March 31, 2025

June 30, 2025

December 31, 2024

8 unchanged sentences

Consumer non-real estate

(1) Excludes accrued interest receivable of $ 40.4 million at March 31, 2025 and $ 40.9 million at December 31, 2024, that is recorded in accrued interest receivable and other assets.

(1) Excludes accrued interest receivable of $ 40.9 million at June 30, 2025 and $ 40.9 million at December 31, 2024, that is recorded in accrued interest receivable and other assets.

The Company's loans are currently 83 % held by BancFirst and 17 % held by Pegasus and Worthington.

6 unchanged sentences

Other Real Estate Owned and Repossessed Assets and Loan Modifications

The following is a summary of other real estate owned and repossessed assets:

March 31, 2025

The following is a summary of other real estate owned ("OREO") and repossessed assets:

June 30, 2025

December 31, 2024

1 unchanged sentence

Other real estate owned and repossessed assets

As of both March 31, 2025 and December 31, 2024, other real estate owned included a commercial real estate property recorded at approximately $ 29.5 million and $ 28.1 million, respectively.

The increase in OREO and this commercial real estate property was due to tenant improvements during the three months ended March 31, 2025.

During the six months ended June 30, 2025 the Company foreclosed on a construction and development real estate loan and recorded $ 15.6 million in OREO, which was the primary reason for the increase in OREO.

In addition, as of both June 30, 2025 and December 31, 2024, OREO included a commercial real estate property recorded at approximately $ 30.7 million and $ 28.1 million, respectively.

The increase for this commercial real estate property was due to tenant improvements during the six months ended June 30, 2025.

Rental income for this property is included in other noninterest income on the consolidated statements of comprehensive income.

1 unchanged sentence

This property had the following rental income and operating expenses for the periods presented.

For the Three Months Ended March 31,

Three Months Ended

Six Months Ended June 30,

(Dollars in thousands)

1 unchanged sentence

Operating expense

During the three months ended March 31, 2025 , the Company sold property held in other real estate owned for a total gain of $ 25,000 , compared to a total gain of $ 177,000 in the three months ended March 31, 2024.

During the six months ended June 30, 2025 , the Company sold property held in other real estate owned for a total loss of $ 79,000 , compared to a total gain of $ 1.3 million in the six months ended June 30, 2024.

The Company charges interest on principal balances outstanding on modified loans during deferral periods.

The current and future financial effects of the recorded balance of loans considered to be modified during the period were not considered to be material.

The recorded balance of loans modified during the three months ended March 31, 2025 was approximately $ 1.9 million compared to $ 14.8 million during the year ended December 31, 2024.

The current and future financial effects of the recorded balance of loans considered to be modified during the period were not material.

The recorded balance of loans modified during the six months ended June 30, 2025 was approximately $ 3.6 million compared to $ 14.8 million during the year ended December 31, 2024.

Nonaccrual loans

The Company did no t recognize any interest income on nonaccrual loans for either the three months ended March 31, 2025 or 2024.

In addition, all loans identified as nonaccrual loans have related allowances for credit losses at March 31, 2025 and December 31, 2024, respectively.

Had nonaccrual loans performed in accordance with their original contractual terms, the Company would have recognized additional interest income of approximately $ 1.0 million for the three months ended March 31, 2025 and approximately $ 696,000 for the three months ended March 31, 2024.

Nonaccrual loans guaranteed by government agencies totaled approximately $ 9.2 million at March 31, 2025 and approximately $ 9.0 million at December 31, 2024.

The Company did no t recognize any interest income on nonaccrual loans for either the six months ended June 30, 2025 or 2024.

In addition, all loans identified as nonaccrual loans have related allowances for credit losses at June 30, 2025 and December 31, 2024, respectively.

Had nonaccrual loans performed in accordance with their original contractual terms, the Company would have recognized additional interest income of approximately $ 2.3 million for the six months ended June 30, 2025 and approximately $ 1.8 million for the six months ended June 30, 2024.

Nonaccrual loans guaranteed by government agencies totaled approximately $ 9.5 million at June 30, 2025 and approximately $ 9.0 million at December 31, 2024.

The following table is a summary of amounts included in nonaccrual loans, segregated by portfolio segment.

March 31, 2025

June 30, 2025

December 31, 2024

9 unchanged sentences

Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due.

The following table presents an age analysis of the Company's loans held for investment:

The following tables present an age analysis of the Company's loans held for investment:

Age Analysis of Past Due Loans

(Dollars in thousands)

As of March 31, 2025

As of June 30, 2025

Commercial real estate owner occupied

27 unchanged sentences

Amortized Cost Basis

As of March 31, 2025

As of June 30, 2025

Commercial real estate owner occupied

22 unchanged sentences

(Dollars in thousands)

Three months ended March 31, 2025

Three months ended June 30, 2025

Commercial real estate owner occupied

21 unchanged sentences

(Dollars in thousands)

Three months ended March 31, 2024

Three months ended June 30, 2024

Commercial real estate owner occupied

17 unchanged sentences

Total current-period gross charge-offs

Term Loans Amortized Cost Basis by Origination Year

Revolving Loans

Amortized Cost Basis

(Dollars in thousands)

Six months ended June 30, 2025

Commercial real estate owner occupied

Current-period gross charge-offs

Commercial real estate non-owner occupied

Current-period gross charge-offs

Construction and development < 60 months

Current-period gross charge-offs

Construction residential real estate < 60 months

Current-period gross charge-offs

Residential real estate first lien

Current-period gross charge-offs

Residential real estate all other

Current-period gross charge-offs

Commercial non-real estate

Current-period gross charge-offs

Consumer non-real estate

Current-period gross charge-offs

Total current-period gross charge-offs

Term Loans Amortized Cost Basis by Origination Year

Revolving Loans

Amortized Cost Basis

(Dollars in thousands)

Six months ended June 30, 2024

Commercial real estate owner occupied

Current-period gross charge-offs

Commercial real estate non-owner occupied

Current-period gross charge-offs

Construction and development < 60 months

Current-period gross charge-offs

Construction residential real estate < 60 months

Current-period gross charge-offs

Residential real estate first lien

Current-period gross charge-offs

Residential real estate all other

Current-period gross charge-offs

Commercial non-real estate

Current-period gross charge-offs

Consumer non-real estate

Current-period gross charge-offs

Total current-period gross charge-offs

Allowance for Credit Losses Methodology

7 unchanged sentences

(Dollars in thousands)

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Commercial real estate owner occupied

9 unchanged sentences

(Dollars in thousands)

Three Months Ended March 31, 2024

Three Months Ended June 30, 2024

Commercial real estate owner occupied

6 unchanged sentences

Consumer non-real estate

Allowance for Credit Losses

Provision for /(benefit from) credit losses on loans

(Dollars in thousands)

Six Months Ended June 30, 2025

Commercial real estate owner occupied

Commercial real estate non-owner occupied

Construction and development < 60 months

Construction residential real estate < 60 months

Residential real estate first lien

Residential real estate all other

Commercial non-real estate

Consumer non-real estate

Allowance for Credit Losses

Provision for /(benefit from) credit losses on loans

(Dollars in thousands)

Six Months Ended June 30, 2024

Commercial real estate owner occupied

Commercial real estate non-owner occupied

Construction and development < 60 months

Construction residential real estate < 60 months

Residential real estate first lien

Residential real estate all other

Commercial non-real estate

Consumer non-real estate

Purchased Credit Deteriorated Loans

The Company has previously purchased loans, for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination.

The Company did not purchase credit-deteriorated loans during the three month period ended March 31, 2025 or March 31, 2024.

The Company did not purchase credit-deteriorated loans during the six month period ended June 30, 2025 or June 30, 2024.

Collateral Dependent Loans

A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral.

During the three months ended March 31, 2025 and 2024 , no material amount of interest income was recognized on collateral-dependent loans subsequent to their classification as collateral-dependent.

During the six months ended June 30, 2025 and 2024 , no material amount of interest income was recognized on collateral-dependent loans subsequent to their classification as collateral-dependent.

The following tables summarize collateral-dependent gross loans held for investment by collateral type and the related specific allocation as follows:

3 unchanged sentences

(Dollars in thousands)

As of March 31, 2025

As of June 30, 2025

Commercial real estate owner occupied

22 unchanged sentences

Non-Cash Transfers from Loans and Premises and Equipment

Transfers from loans and premises and equipment to other real estate owned and repossessed assets are non-cash transactions, and are not included in the consolidated statements of cash flow.

Transfers from loans and premises and equipment to other real estate owned and repossessed assets during the periods presented are summarized as follows:

Three Months Ended March 31,

Transfers from loans and premises and equipment to OREO and repossessed assets are non-cash transactions, and are not included in the consolidated statements of cash flow.

Transfers from loans and premises and equipment to OREO and repossessed assets during the periods presented are summarized as follows:

Six Months Ended June 30,

(Dollars in thousands)

4 unchanged sentences

(Dollars in thousands)

March 31, 2025

June 30, 2025

Core deposit intangibles

9 unchanged sentences

(Dollars in thousands)

Three months ended March 31, 2025

Six months ended June 30, 2025

Balance at beginning and end of period

1 unchanged sentence

(6) SUBORDINATED DEBT

In January 2004, the Company established BFC Capital Trust II (“BFC II”), a trust formed under the Delaware Business Trust Act.

The Company owns all of the common securities of BFC II.

In February 2004, BFC II issued $ 25 million of aggregate liquidation amount of 7.20 % Cumulative Trust Preferred Securities (the “Cumulative Trust Preferred Securities”) to other investors.

In March 2004, BFC II issued an additional $ 1 million in Cumulative Trust Preferred Securities through the execution of an over-allotment option.

In 2004, BFC Capital Trust II (“BFC II”), issued $ 26 million of aggregate liquidation amount of 7.20 % Cumulative Trust Preferred Securities (the “Cumulative Trust Preferred Securities”) to other investors.

The proceeds from the sale of the Cumulative Trust Preferred Securities and the common securities of BFC II were invested in $ 26.8 million of 7.20 % Junior Subordinated Debentures of the Company.

14 unchanged sentences

The Company may, at its option, beginning with the interest payment date of June 30, 2031, and on any scheduled interest payment date thereafter, redeem the Subordinated Notes, in whole or in part.

In addition, the Company may redeem all, but not less than all, of the Subordinated Notes at any time upon the occurrence of a “Tier 2 Capital Event,” a “Tax Event” or an “Investment Company Event” (each as defined in the Subordinated Notes).

(each as defined in the Subordinated Notes).

Any such redemption is subject to obtaining the prior approval of the Board of Governors of the Federal Reserve System (or its designee).

4 unchanged sentences

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 March 31, 2025 there were 453,175 shares available for future grants.

At June 30, 2025 there were 447,175 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 .

2 unchanged sentences

The following table is a summary of the activity under the Company's RSU plan.

Three Months Ended March 31, 2025

Six Months Ended June 30, 2025

Nonvested at December 31, 2024

Nonvested at March 31, 2025

Nonvested at June 30, 2025

The Company has had the BancFirst Corporation Directors’ Deferred Stock Compensation Plan (the “Deferred Stock Compensation Plan”) since May 1999.

As of March 31, 2025, there are 33,528 shares available for future issuance under the Deferred Stock Compensation Plan.

As of June 30, 2025, there are 31,459 shares available for future issuance under the Deferred Stock Compensation Plan.

The Deferred Stock Compensation Plan will terminate on December 31, 2030 , if not extended.

2 unchanged sentences

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 4,045 and 5,022 shares of common stock distributed from the Deferred Stock Compensation Plan during the three months ended March 31, 2025 and 2024, respectively.

There were 6,462 and 5,022 shares of common stock distributed from the Deferred Stock Compensation Plan during the six months ended June 30, 2025 and 2024, respectively.

A summary of the accumulated stock units under the Deferred Stock Compensation Plan is as follows:

March 31, 2025

June 30, 2025

December 31, 2024

7 unchanged sentences

(Dollars in thousands, except option data)

Three Months Ended March 31, 2025

Six Months Ended June 30, 2025

Outstanding at December 31, 2024

1 unchanged sentence

Options canceled, forfeited, or expired

Outstanding at March 31, 2025

Exercisable at March 31, 2025

Outstanding at June 30, 2025

Exercisable at June 30, 2025

The following table has additional information regarding options exercised under both the Employee Plan and the Non-Employee Directors’ Plan:

Three Months Ended

Six Months Ended

(Dollars in thousands)

2 unchanged sentences

Tax benefit realized from options exercised

The Company currently uses newly issued shares for stock option exercises, but reserves the right to use shares purchased under the Company’s Stock Repurchase Program (the “SRP”) in the future.

The Company currently uses newly issued shares for stock-based compensation plans, 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.

The Company had no cash settlements during the three months ended March 31, 2025 or March 31, 2024.

The Company had no cash settlements during the six months ended June 30, 2025 or June 30, 2024.

Stock-based compensation expense is charged to salaries and benefits expense on the Consolidated Statements of Comprehensive Income.

1 unchanged sentence

Three Months Ended

Six Months Ended

(Dollars in thousands)

3 unchanged sentences

The following table shows the unearned stock-based compensation expense for unvested stock options and unvested RSU's:

March 31, 2025

June 30, 2025

(Dollars in thousands)

4 unchanged sentences

The SRP may be used as a means to increase earnings per share and return on equity.

In addition, the SRP may be used to purchase treasury stock for the exercise of stock options or for distributions under the Deferred Stock Compensation Plan, to provide liquidity for optionees to dispose of stock from exercises of their stock options and to provide liquidity for stockholders wishing to sell their stock.

All shares repurchased under the SRP have been

retired and not held as treasury stock.

The timing, price and amount of stock repurchases under the SRP is determined by management and approved by the Company’s Executive Committee.

In addition, the SRP may be used to purchase treasury stock for the issuance of stock related to stock-based compensation plans, to provide liquidity for optionees to dispose of stock from exercises of their stock options and to provide liquidity for stockholders wishing to sell their stock.

All shares repurchased under the SRP have been retired and not held as treasury stock.

timing, price and amount of stock repurchases under the SRP is determined by management and approved by the Company’s Executive Committee.

The following table is a summary of the shares under the SRP:

Three Months Ended

June 30, 2025

Shares remaining to be repurchased

2 unchanged sentences

Failure to meet the minimum capital requirements can initiate certain mandatory or discretionary actions by the regulatory agencies that could have a direct material effect on the Company’s consolidated financial statements.

The Company believes that as of March 31, 2025 , BancFirst Corporation, BancFirst, Pegasus and Worthington each met all capital adequacy requirements to which they are subject.

The Company believes that as of June 30, 2025 , BancFirst Corporation, BancFirst, Pegasus and Worthington each met all capital adequacy requirements to which they are subject.

The actual and required capital amounts and ratios are shown in the following table:

4 unchanged sentences

(Dollars in thousands)

As of March 31, 2025:

As of June 30, 2025:

Total Capital

10 unchanged sentences

BancFirst Corporation

As of March 31, 2025 , BancFirst, Pegasus and Worthington were classified by the Federal Reserve as “well capitalized” under the prompt corrective action provisions.

As of June 30, 2025 , BancFirst, Pegasus and Worthington were classified by the Federal Reserve as “well capitalized” under the prompt corrective action provisions.

The Common Equity Tier 1 Capital of BancFirst Corporation, BancFirst, Pegasus and Worthington includes common stock and related paid-in capital and retained earnings.

5 unchanged sentences

Basic and diluted net income per common share are calculated as follows:

Three Months Ended March 31,

Three Months Ended

Six Months Ended

(Dollars in thousands, except per share data)

7 unchanged sentences

The following table shows the number of options and RSU's that were excluded from the computation of diluted net income per common share for each period because they were anti-dilutive for the period:

Three Months Ended March 31, 2025

Three Months Ended March 31, 2024

Three Months Ended June 30, 2025

Three Months Ended June 30, 2024

Six Months Ended June 30, 2025

Six Months Ended June 30, 2024

(10) FAIR VALUE MEASUREMENTS

15 unchanged sentences

federal agencies, registered mortgage backed debt securities and state and political subdivisions are valued using prices from an independent pricing service utilizing Level 2 data.

The fair value measurements consider

observable data that may include dealer quotes, market spreads, cash flows, the U.S.

The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S.

Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and a bond’s terms and conditions, among other things.

20 unchanged sentences

(Dollars in thousands)

March 31, 2025

June 30, 2025

Debt securities available for sale:

14 unchanged sentences

The changes in Level 3 assets measured at estimated fair value on a recurring basis during the periods presented were as follows:

Three Months Ended March 31,

Six Months Ended June 30,

Twelve Months Ended December 31,

3 unchanged sentences

The Company’s policy is to recognize transfers in and transfers out of Levels 1, 2 and 3 as of the end of the reporting period.

During the three months ended March 31, 2025, and the year ended December 31, 2024, the Company did not transfer any debt securities.

During the six months ended June 30, 2025, and the year ended December 31, 2024, the Company did not transfer any debt securities.

Financial Assets and Financial Liabilities Measured at Fair Value on a Nonrecurring Basis

15 unchanged sentences

(Dollars in thousands)

As of and for the Year-to-date Period Ended March 31, 2025

As of and for the Year-to-date Period Ended June 30, 2025

Equity securities

32 unchanged sentences

The fair values of fixed-maturity certificates of deposit are estimated using the rates currently offered for deposits of similar remaining maturities.

Short-Term Borrowings

The amounts payable on these short-term instruments are reasonable estimates of fair value.

Subordinated Debt

4 unchanged sentences

The estimated fair values of the Company’s financial instruments that are reported at amortized cost in the Company’s consolidated balance sheets, segregated by the level of valuation inputs within the fair value hierarchy utilized to measure fair value, are as follows:

March 31, 2025

June 30, 2025

December 31, 2024

11 unchanged sentences

Level 2 inputs:

Short-term borrowings

Subordinated debt

7 unchanged sentences

The intangible assets are evaluated at least annually for impairment.

The overall levels of non-financial assets measured at fair value on a nonrecurring basis were no t considered to be significant to the Company at March 31, 2025 or December 31, 2024 .

The overall levels of non-financial assets measured at fair value on a nonrecurring basis were no t considered to be significant to the Company at June 30, 2025 or December 31, 2024 .

(11) DERIVATIVE FINANCIAL INSTRUMENTS

3 unchanged sentences

The Company's derivative financial instruments require a daily margin to be posted, which fluctuates with oil and gas prices.

At March 31, 2025 and December 31, 2024 , the Company had a margin asset included in other assets in the amount of $ 12.6 million and $ 463,000 , respectively.

At June 30, 2025 and December 31, 2024 , the Company had a margin asset included in other assets in the amount of $ 3.6 million and $ 463,000 , respectively.

The Company utilizes dealer quotations and observable market data inputs to substantiate internal valuation models.

The notional amounts and estimated fair values of oil and gas derivative positions outstanding are presented in the following table:

March 31, 2025

June 30, 2025

December 31, 2024

14 unchanged sentences

The following table is a summary of the Company's recognized income related to the activity, which was included in other noninterest income:

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(Dollars in thousands)

Derivative income

6 unchanged sentences

The following table is a summary of the Company's net credit exposure relating to oil and gas swaps and options with bank counterparties:

March 31, 2025

June 30, 2025

December 31, 2024

13 unchanged sentences

Capital expenditures are generally charged to the business unit using the asset.

The six principal business units are BancFirst metropolitan banks, BancFirst community banks, Pegasus, Worthington, other financial services and executive, operations and support.

The six principal business units are BancFirst metropolitan banks, BancFirst community banks, Pegasus, Worthington, other financial services and executive, operations, support and eliminations.

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.

4 unchanged sentences

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.

The executive, operations, support and eliminations group represents executive management, operational support, corporate functions that are not allocated to the other business units and elimination adjustments to consolidate the business units.

The results of operations and selected financial information for the six business units are as follows:

1 unchanged sentence

BancFirst Community

Executive, Operations, Support and Eliminations

(Dollars in thousands)

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Interest income

6 unchanged sentences

Income before taxes

Three Months Ended June 30, 2024

Interest income

Interest expense

Total provision for

credit losses

Noninterest income

Depreciation and

Other noninterest expense

Income before taxes

BancFirst Metropolitan

BancFirst Community

Executive, Operations, Support and Eliminations

(Dollars in thousands)

Six Months Ended June 30, 2025

Interest income

Interest expense

Total provision for

credit losses

Noninterest income

Depreciation and

Other noninterest expense

Income before taxes

Capital expenditures

June 30, 2025

Loans held for investment

Total deposits

Capital expenditures

Three Months Ended March 31, 2024

Six Months Ended June 30, 2024

Interest income

Interest expense

Total provision for/(benefit

from) credit losses

Total provision for

credit losses

Noninterest income

2 unchanged sentences

Income before taxes

Capital expenditures

June 30, 2024

Loans held for investment

Total deposits

Capital expenditures

Management’s Discussio n and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis of our financial condition as of March 31, 2025 and December 31, 2024 and results of operations for the three months ended March 31, 2025 should be read in conjunction with our consolidated financial statements and notes to the consolidated financial statements for the year ended December 31, 2024, and the other information included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

The following discussion and analysis of our financial condition as of June 30, 2025 and December 31, 2024 and results of operations for the three and six months ended June 30, 2025 should be read in conjunction with our consolidated financial statements and notes to the consolidated financial statements for the year ended December 31, 2024, and the other information included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

Certain risks, uncertainties and other factors, including those set forth under "Risk Factors" in Part I, Item 1A of the 2024 Form 10-K, and "Item 1A, Risk Factors" in this Quarterly Report on Form 10-Q, may cause actual results to differ materially from the results discussed in the forward-looking statements appearing in this discussion and analysis.

14 unchanged sentences

Factors that could cause actual results to differ from those discussed in the forward-looking statements include, but are not limited to:

• Potential impacts of adverse developments in the banking industry that could impact customer confidence.

• Changes in the regulatory environment for the banking industry, including rule-making, supervision, examination, and enforcement.

• The effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters.

• Changes in fiscal, monetary or regulatory policy may have adverse consequences including impacts to the labor market, tariffs and inflation which may impact our financial performance.

• Deterioration in the market for commercial office property could have an adverse effect on the value of the Company's other real estate owned as well as commercial office collateral for the Company's commercial real estate loans.

• Further shift in deposit mix from noninterest-bearing deposits to interest-bearing deposits could negatively impact net interest margin.

• Changes in interest rates.

• The increased time and effort related to ongoing and/or changed regulations from regulatory bodies could negatively impact noninterest expense.

• Changes in the regulatory environment for the banking industry, including rule-making, supervision, examination, and enforcement.

• The increased time, effort and staffing needs related to ongoing and/or changed regulations from regulatory bodies could negatively impact noninterest expense.

• Local, regional, national and international economic conditions, including the effect of a government shutdown, and the impact they may have on the Company and its customers.

• Changes in the mix of loan sectors and types or the level of non-performing assets and charge-offs.

• Inflation, including wage inflation, energy prices, securities markets and monetary fluctuations.

• Impairment of the Company’s goodwill or other intangible assets.

• Changes in consumer spending, borrowing and savings habits.

• Changes in oil and gas commodity prices and the potential impact to the related loan portfolio as well as the overall impact to the Oklahoma economic environment.

• Changes in interest rates.

• Potential impacts of adverse developments in the banking industry that could impact customer confidence.

• Further shift in deposit mix from noninterest-bearing deposits to interest-bearing deposits could negatively impact net interest margin.

• Changes in the financial performance and/or condition of the Company’s borrowers, including the impact of higher interest rates.

• Technological changes.

• Changes in consumer spending, borrowing and savings habits.

• Changes in the mix of loan sectors and types or the level of non-performing assets and charge-offs.

• Impairment of the Company’s goodwill or other intangible assets.

• Technological changes, fintech competition and disruption to the traditional banking systems, including emerging regulation around stablecoins, blockchain technology in payment networks and market acceptance of digital assets.

• Cyber threats.

• The Company’s success at managing the risks involved in the foregoing items.

Actual results may differ materially from forward-looking statements.

The Company’s net income for the first quarter of 2025 was $56.1 million, compared to $50.3 million for the first quarter of 2024.

Diluted net income per common share was $1.66 and $1.50 for the first quarter of 2025 and 2024, respectively.

The Company’s net interest income for the first quarter of 2025 increased to $115.9 million from $106.1 million for the first quarter of 2024.

The Company’s net income for the second quarter of 2025 was $62.3 million, compared to $50.6 million for the second quarter of 2024.

Diluted net income per common share was $1.85 and $1.51 for the second quarter of 2025 and 2024, respectively.

The Company’s net interest income for the second quarter of 2025 increased to $121.3 million from $109.9 million for the second quarter of 2024.

Higher loan volume along with general growth in earning assets were the primary drivers of the change in net interest income.

Net interest margin was unchanged at 3.70% for both the first quarter of 2025 and 2024.

The Company recorded a provision for credit losses on loans of $1.5 million in the first quarter of 2025 compared to $4.0 million for the first quarter of 2024.

Noninterest income for the quarter totaled $49.0 million compared to $44.9 million last year.

Trust revenue, treasury income, sweep fees and insurance commissions each increased when compared to the first quarter last year.

Noninterest expense grew to $92.2 million for the quarter-ended March 31, 2025 compared to $82.8 million in the same quarter in 2024.

The Company recorded a $4.4 million expense related to the disposition of certain equity investments no longer permissible under the Volcker Rule, which prohibits banks with more than $10 billion in assets from holding certain private equity investments.

Additionally, the increase in noninterest expense was augmented by growth in salaries and employee benefits of $3.1 million.

At March 31, 2025, the Company’s total assets were $14.0 billion, an increase of $483.7 million from December 31, 2024.

Loans grew $69.6 million from December 31, 2024, totaling $8.1 billion at March 31, 2025.

Net interest margin was virtually unchanged at 3.75% for the second quarter of 2025 and 3.76% for the second quarter of 2024.

The Company recorded a provision for credit losses on loans of $1.2 million in the second quarter of 2025 compared to $3.4 million for the second quarter of 2024.

Noninterest income for the second quarter of 2025 totaled $48.0 million compared to $43.9 million for the second quarter of 2024.

Trust revenue, treasury income, sweep fees, insurance commissions and other noninterest income each increased when compared to second quarter last year.

The increase in other noninterest income was driven by changes in cash surrender value of life insurance as well as gains on disposal of other assets.

The increases were partially offset by losses on equity securities in the second quarter of 2025.

Noninterest expense grew to $88.2 million for the second quarter of 2025 compared to $85.3 million in the same quarter in 2024.

The increase in noninterest expense was primarily related to growth in salaries and employee benefits of $3.2 million.

At June 30, 2025, the Company’s total assets were $14.0 billion, an increase of $491.5 million from December 31, 2024.

Loans grew $91.3 million from December 31, 2024, totaling $8.1 billion at June 30, 2025.

Deposits totaled $12.1 billion, an increase of $337.6 million from year-end 2024.

Sweep accounts totaled $5.5 billion at March 31, 2025, up $324.6 million from December 31, 2024.

Sweep accounts totaled $5.3 billion at June 30, 2025, up $66.8 million from December 31, 2024.

The Company’s total stockholders’ equity was $1.7 billion, an increase of $106.9 million over December 31, 2024.

Nonaccrual loans totaled $56.4 million, representing 0.70% of total loans at March 31, 2025, down slightly from 0.72% at year-end 2024.

The allowance for credit losses to total loans was 1.24% at March 31, 2025, unchanged from December 31, 2024.

Net charge-offs were $503,000 for the first quarter of 2025 compared to $3.5 million for the first quarter of 2024.

Nonaccrual loans totaled $49.9 million, representing 0.61% of total loans at June 30, 2025, down slightly from 0.72% at year-end 2024.

The allowance for credit losses to total loans was 1.19% at June 30, 2025, down from 1.24% at December 31, 2024.

Net charge-offs were $4.7 million for the second quarter of 2025, including $3.7 million relating to one real estate loan that was taken into other real estate owned, compared to $999,000 for the second quarter of 2024.

See Note (2) of the Notes to Consolidated Financial Statements for disclosure regarding the Company’s recent developments, including mergers and acquisitions.

FUTURE APPLICATION OF ACCOUNTING STANDARDS

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Average Balances, Income, Expenses and Rates

The following table presents certain information related to the Company's consolidated average balance sheet, average yields on assets and average costs of liabilities.

The following tables present certain information related to the Company's consolidated average balance sheet, average yields on assets and average costs of liabilities.

Such yields are derived by dividing income or expense by the average balance of the corresponding assets or liabilities.

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(i) average balances are derived from daily averages, (ii) information is shown on a taxable-equivalent basis assuming a 21% tax rate, and (iii) nonaccrual loans are included in the average loan balances and any interest on such nonaccrual loans is recognized on a cash basis.

Loan fees included in interest income were $5.0 million for the three months ended March 31, 2025 compared to $5.4 million for the three months ended March 31, 2024.

Loan fees included in interest income were $5.1 million for the three months ended June 30, 2025 compared to $5.5 million for the three months ended June 30, 2024.

Loan fees included in interest income were $10.1 million for the six months ended June 30, 2025 compared to $10.9 million for the six months ended June 30, 2024.

BANCFIRST CORPORATION

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(Dollars in thousands)

Three Months Ended March 31,

Three Months Ended June 30,

Earning assets:

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Net interest margin

BANCFIRST CORPORATION

CONSOLIDATED AVERAGE BALANCE SHEETS AND INTEREST MARGIN ANALYSIS

Taxable Equivalent Basis

(Dollars in thousands)

Six Months Ended June 30,

Earning assets:

Debt securities – taxable

Debt securities – tax exempt

Federal funds sold and interest-bearing deposits with banks

Total earning assets

Nonearning assets:

Cash and due from banks

Interest receivable and other assets

Allowance for credit losses

Total nonearning assets

LIABILITIES AND STOCKHOLDERS’ EQUITY

Interest-bearing liabilities:

Transaction deposits

Savings deposits

Time deposits

Short-term borrowings

Subordinated debt

Total interest-bearing liabilities

Interest-free funds:

Noninterest-bearing deposits

Interest payable and other liabilities

Stockholders’ equity

Total interest free funds

Total liabilities and stockholders’ equity

Net interest income

Net interest spread

Effect of interest free funds

Net interest margin

Selected income statement data and other selected data for the comparable periods were as follows:

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Three Months Ended

Six Months Ended

Income Statement Data

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Net Interest Income

For the three months ended March 31, 2025, net interest income, which is the Company’s principal source of operating revenue, increased $9.8 million or 9.3% compared to the three months ended March 31, 2024.

For the three months ended June 30, 2025, net interest income, which is the Company’s principal source of operating revenue, increased $11.4 million or 10.3% compared to the three months ended June 30, 2024.

Higher loan volume along with general growth in earning assets were the primary drivers of the change in net interest income.

Net interest margin is the ratio of taxable-equivalent net interest income to average earning assets for the period.

The Company’s net interest margin was unchanged for the first quarter of 2025 compared to the first quarter of 2024.

Net interest income for the six months ended June 30, 2025 increased $21.2 million or 9.8% compared to the six months ended June 30, 2024.

Higher loan volume along with general growth in earning assets were the primary driver, to the increase.

Provision for Credit Losses on loans

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Should any of the factors considered by management in evaluating the appropriate level of the allowance for credit losses change, the Company’s estimate of expected credit losses could also change which could affect the amount of future provisions for credit losses.

Net loan charge-offs were $503,000 million for the first quarter of 2025 compared to net loan charge-offs of $3.5 million for the first quarter of 2024.

Net loan charge-offs were $4.7 million for the second quarter of 2025 compared to net loan charge-offs of $999,000 for the second quarter of 2024.

The rate of net charge-offs to average total loans continues to be at a low level.

Net loan charge-offs were $5.2 million for the six months ended June 30, 2025, compared to $4.5 million for the same period of the prior year.

Noninterest Income

Noninterest income increased by $4.0 million for the first quarter of 2025 compared to the first quarter of 2024.

Trust revenue, treasury income, sweep fees and insurance commissions each increased when compared to last year.

Noninterest income included non-sufficient funds ("NSF") and overdraft fees totaling $7.4 million and $7.1 million for the three months ended March 31, 2025 and 2024, respectively.

This represents 15.1% and 15.9% of the Company’s noninterest income for the

respective periods.

In addition, the Company had debit card usage and interchange fees totaling $6.5 million during the three months ended March 31, 2025 and 2024.

Noninterest income increased by $4.1 million for the second quarter of 2025 compared to the second quarter of 2024.

Trust revenue, treasury income, sweep fees, insurance commissions, and other noninterest income each increased when compared to second quarter last year.

The increase in other noninterest income was driven by changes in cash surrender value of life insurance as well as gains on disposal of other assets.

The increases were partially offset by losses on equity securities in the second quarter of 2025.

Noninterest income included non-sufficient funds ("NSF") and overdraft fees totaling $7.6 million and $7.3 million for the three months ended June 30, 2025 and 2024, respectively.

This represents 15.8% and 16.6% of the Company’s noninterest income for the respective periods.

In addition, the Company had debit card usage and interchange fees totaling $6.9 million and $6.8 million during the three months ended June 30, 2025 and 2024, respectively.

This represents 14.3% and 15.4% of the Company’s noninterest income for the respective periods.

Noninterest income increased by $8.1 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

Trust revenue, treasury income, sweep fees, insurance commissions, and other noninterest income each increased when compared to the same period last year.

The increase in other noninterest income was driven by changes in cash surrender value of life insurance as well as gains on disposal of other assets.

The increases were partially offset by losses on equity securities in 2025.

Noninterest income included NSF and overdraft fees totaling $15.0 million and $14.4 million during the six months ended June 30, 2025 and 2024, respectively.

This represents 15.5% and 16.2% of the Company’s noninterest income for the respective periods.

In addition, the Company had debit card usage and interchange fees totaling $13.4 million and $13.3 million during the six months ended June 30, 2025 and 2024, respectively.

This represents 13.8% and 15.0% of the Company’s noninterest income for the respective periods.

Noninterest Expense

Noninterest expense increased by $9.4 million for first quarter of 2025 compared to the first quarter of 2024.

Additionally, the increase in noninterest expense was augmented by growth in salaries and employee benefits of $3.1 million.

The Company’s effective tax rate was 21.1% for the first quarter of 2025, compared to 21.6% for the first quarter of 2024.

Noninterest expense increased by $2.9 million for second quarter of 2025 compared to the second quarter of 2024.

The increase in noninterest expenses was primarily related to growth in salaries and employee benefits of $3.2 million.

For the six months ended June 30, 2025, noninterest expense increased by $12.3 million compared to the six months ended June 30, 2024.

Higher noninterest expenses in 2025 were primarily related to growth in salaries and employee benefits of $6.3 million, an increase in occupancy expense of $1.4 million and an increase in the net expense from other real estate owned of $1.7 million.

In addition, the Company recorded an expense related to the disposition of certain equity investments no longer permissible under the Volcker Rule, which prohibits banks with more than $10 billion in assets from holding certain private equity investments.

The Company’s effective tax rate was 21.8% for the second quarter of 2025, compared to 22.3% for the second quarter of 2024.

The Company’s effective tax rate was 21.4% for the six months ended June 30, 2025, compared to 22.0% for the six months ended June 30, 2024.

The primary reasons for the difference between the Company’s effective tax rate and the federal statutory rate were tax-exempt income, nondeductible amortization, federal and state tax credits and state tax expense.

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This measure should not be considered a substitute for operating results determined in accordance with GAAP.

(3) Government agencies guaranteed approximately $9.2 million of nonaccrual loans at March 31, 2025.

(3) Government agencies guaranteed approximately $9.5 million of nonaccrual loans at June 30, 2025.

Cash and Due from Banks, Federal Funds Sold and Interest-Bearing Deposits with Banks

The aggregate of cash and due from banks, federal funds sold and interest-bearing deposits with banks increased by $420.2 million or 11.8%, to $4.0 billion from December 31, 2024 to March 31, 2025.

The aggregate of cash and due from banks, federal funds sold and interest-bearing deposits with banks increased by $442.9 million or 12.5%, to $4.0 billion from December 31, 2024 to June 30, 2025.

The increase was related to an increase of interest-bearing deposits in addition to maturing securities.

At March 31, 2025, total debt securities decreased $44.3 million, or 3.7% compared to December 31, 2024.

At June 30, 2025, total debt securities decreased $107.2 million, or 8.8% compared to December 31, 2024.

The size of the Company’s securities portfolio is determined by the Company’s liquidity and asset/liability management.

The net unrealized loss on debt securities available for sale, before taxes, was $31.1 million at March 31, 2025, compared to a net unrealized loss of $43.1 million at December 31, 2024.

These unrealized losses of $23.7 million at March 31, 2025 and $32.9 million at December 31, 2024 are included in the Company’s stockholders’ equity as accumulated other comprehensive loss, net of income tax.

The Company did not purchase or sell any debt securities during the quarter ended March 31, 2025.

The Company did not recognize a gain or loss on debt securities during the quarters ended March 31, 2025 or 2024.

The Company had maturities and paydowns of debt securities totaling $56.3 million during the quarter ended March 31, 2025 and $17.7 million during the quarter ended March 31, 2024.

The net unrealized loss on debt securities available for sale, before taxes, was $23.0 million at June 30, 2025, compared to a net unrealized loss of $43.1 million at December 31, 2024.

These unrealized losses of $17.6 million at June 30, 2025 and $32.9 million at December 31, 2024 are included in the Company’s stockholders’ equity as accumulated other comprehensive loss, net of income tax.

During the six months ended June 30, 2025, the Company purchased $233,000 of debt securities compared to $270,000 during the six months ended June 30, 2024.

The Company did not sell any debt securities during the six months ended June 30, 2025 or 2024.

The Company did not recognize a gain or loss on debt securities during the six months ended June 30, 2025 or 2024.

The Company had maturities and paydowns of debt securities totaling $127.7 million during the six months ended June 30, 2025 and $117.0 million during the six months ended June 30, 2024.

See Note (3) of the Notes to Consolidated Financial Statements for disclosures regarding the Company’s securities.

At March 31, 2025, total loans increased $69.6 million or 0.9% compared to December 31, 2024 as a result of internal loan growth.

At June 30, 2025, total loans increased $91.3 million or 1.1% compared to December 31, 2024 as a result of internal loan growth.

Of the total increase in loans, commercial real estate made up the largest increase with $101.5 million.

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Nonaccrual Loans

Nonaccrual loans totaled $56.4 million at March 31, 2025 compared to $58.0 million at December 31, 2024.

The Company’s nonaccrual construction and development real estate loans made up 37% of nonaccrual loans and nonaccrual commercial real estate made up 29%.

Nonaccrual loans totaled $49.9 million at June 30, 2025 compared to $58.0 million at December 31, 2024.

The Company’s nonaccrual commercial non-real estate loans made up 14% and nonaccrual commercial real estate made up 59% of nonaccrual loans.

Nonaccrual loans negatively impact the Company’s net interest margin.

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However, if the full collection of the remaining principal balance is not in doubt, interest income is recognized on certain of these loans on a cash basis.

Had nonaccrual loans performed in accordance with their original contractual terms, the Company would have recognized additional interest income of approximately $1.0 million for the three months ended March 31, 2025 and $696,000 for the three months ended March 31, 2024.

Had nonaccrual loans performed in accordance with their original contractual terms, the Company would have recognized additional interest income of approximately $2.3 million for the six months ended June 30, 2025 and $1.8 million for the six months ended June 30, 2024.

Only a small amount of this interest is expected to be ultimately collected.

Approximately $9.2 million of nonaccrual loans were guaranteed by government agencies at March 31, 2025.

Approximately $9.5 million of nonaccrual loans were guaranteed by government agencies at June 30, 2025.

The classification of a loan as nonaccrual does not necessarily indicate that loan principal and interest will ultimately be uncollectible;

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Modified Loans

The current and future financial effects of the recorded balance of loans considered to be modified during the period were not considered to be material.

The recorded balance of loans modified during the period ended March 31, 2025 was approximately $1.9 million compared to $14.8 million during the year ended December 31, 2024.

The current and future financial effects of the recorded balance of loans considered to be modified during the period were not material.

The recorded balance of loans modified during the six months ended June 30, 2025 was approximately $3.6 million compared to $14.8 million during the year ended December 31, 2024.

Other Real Estate Owned and Repossessed Assets

Other real estate owned ("OREO") consists of properties acquired through foreclosure proceedings or acceptance of a deed in lieu of foreclosure and premises held for sale.

OREO consists of properties acquired through foreclosure proceedings or acceptance of a deed in lieu of foreclosure and premises held for sale.

These properties are carried at the lower of the book values of the related loans or fair values based upon appraisals of the properties, less estimated costs to sell.

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Decreases in values of properties subsequent to their classification as OREO are charged to operating expense.

The Company's write-downs in OREO totaled $20,000 for the three months ended March 31, 2025 compared to $50,000 for the three months ended March 31, 2024.

OREO included a larger commercial real estate property recorded at $29.5 million at March 31, 2025 and $28.1 million at December 31, 2024.

During the quarter ended March 31, 2025, the Company made $1.4 million of tenant improvements to this property, which contributed to the increase of total OREO.

During the six months ended June 30, 2025 the Company foreclosed on a construction and

development real estate loan and recorded $15.6 million in other real estate owned ("OREO"), which was the primary reason for the increase in OREO.

The Company's write-downs of OREO totaled $20,000 for the six months ended June 30, 2025 compared to $50,000 for the six months ended June 30, 2024.

OREO also included a larger commercial real estate property recorded at $30.7 million at June 30, 2025 and $28.1 million at December 31, 2024.

During the six months ended June 30, 2025, the Company made $2.6 million of tenant improvements to this property, which contributed to the increase of total OREO.

Rental income for this property is included in other noninterest income on the consolidated statements of comprehensive income.

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This property had the following rental income and operating expenses for the periods presented:

For the Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(Dollars in thousands)

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The Company's total rental income and operating expenses from OREO are presented in the following table:

For the Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(Dollars in thousands)

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Intangible Assets, Goodwill and Other Assets

Identifiable intangible assets and goodwill totaled $194.5 million and $195.4 million at March 31, 2025 and December 31, 2024, respectively.

Other assets includes the cash surrender value of key-man life insurance policies totaling $84.3 million at March 31, 2025 and $84.4 million at December 31, 2024.

Derivative financial instruments consisting of oil and gas swaps and option contracts are included in other assets and totaled $19.9 million at March 31, 2025 and $10.5 million at December 31, 2024.

Identifiable intangible assets and goodwill totaled $193.7 million and $195.4 million at June 30, 2025 and December 31, 2024, respectively.

Other assets included the cash surrender value of key-man life insurance policies totaling $84.7 million at June 30, 2025 and $84.4 million at December 31, 2024.

Derivative financial instruments consisting of oil and gas swaps and option contracts are included in other assets and totaled $16.1 million at June 30, 2025 and $10.5 million at December 31, 2024.

They require a daily margin to be posted, which fluctuates with oil and gas prices and customer activity.

The Company had a margin asset included in other assets in the amount of $12.6 million at March 31, 2025 and $463,000 at December 31, 2024.

The Company had a margin asset included in other assets in the amount of $3.6 million at June 30, 2025 and $463,000 at December 31, 2024.

See Note (11) of the Notes to Consolidated Financial Statements for a complete discussion of the Company’s derivative financial instruments.

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The realized and unrealized gains and losses are reported as securities transactions in the noninterest income section of the consolidated statements of comprehensive income.

The balance of equity securities was $12.8 million at March 31, 2025 and $13.4 million at December 31, 2024.

The balance of equity securities was $8.2 million at June 30, 2025 and $13.4 million at December 31, 2024.

The decrease in equity securities in 2025 was primarily due to the disposition of certain equity investments no longer permissible under the Volcker rule which prohibits banks with more than $10 billion in assets from holding certain private equity investments.

The Company reviews its portfolio of equity securities for impairment at least quarterly.

Low-Income Housing, New Market Tax Credit Investments and Historic Tax Credit Investments

During 2025, the Company’s low-income housing tax credit ("LIHTC") investments increased $6.5 million totaling $65.1 million at March 31, 2025, New Markets Tax Credits ("NMTC") investments increased $5.3 million totaling $12.8 million at March 31, 2025 and the Historic Tax Credit Investments remained at $6.3 million, all of which are included in other assets on the Company’s consolidated balance sheet.

During 2025, the Company’s low-income housing tax credit ("LIHTC") investments increased $33.9 million totaling $92.5 million at June 30, 2025, New Markets Tax Credits ("NMTC") investments increased $3.9 million totaling $11.4 million at June 30, 2025 and the Historic Tax Credit Investments remained at $6.3 million at June 30, 2025, all of which are included in other assets on the Company’s consolidated balance sheet.

Unfunded commitments related to these investments increased $27.4 million totaling $67.0 million at June 30, 2025, all of which are included in other liabilities on the Company’s consolidated balance sheet.

See Note (6) of the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 for disclosures regarding these investments.

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The Company’s principal source of liquidity and funding is its broad deposit base generated from customer relationships.

The availability of deposits is affected by economic conditions, competition with other financial institutions and alternative investments

available to customers.

The availability of deposits is affected by economic conditions, competition with other financial institutions and alternative investments available to customers.

Through interest rates paid, service charge levels and services offered, the Company can affect its level of deposits to a limited extent.

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The Company maintains lines of credit from the Federal Home Loan Bank (“FHLB”), federal funds lines of credit with other banks and could also utilize the sale of loans, securities and liquidation of other assets as sources of liquidity and funding.

The Company is highly liquid with percent of cash and due from banks, interest-bearing deposits with banks and federal funds sold to total assets of 28.3% at March 31, 2025, compared to 26.2% at December 31, 2024.

The Company is highly liquid with percent of cash and due from banks, interest-bearing deposits with banks and federal funds sold to total assets of 28.5% at June 30, 2025, compared to 26.2% at December 31, 2024.

There have not been any other material changes from the liquidity and funding discussion included in Management’s Discussion and Analysis in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

At March 31, 2025, deposits totaled $12.1 billion, an increase of $408.2 million from December 31, 2024.

At June 30, 2025, deposits totaled $12.1 billion, an increase of $337.6 million from December 31, 2024.

The Company’s core deposits provide it with a stable, low-cost funding source.

The Company’s core deposits as a percentage of total deposits were 95.5% at both March 31, 2025 and December 31, 2024.

Noninterest-bearing deposits to total deposits were 33.2% at March 31, 2025 compared to 33.3% at December 31, 2024.

The Company’s core deposits as a percentage of total deposits were 95.5% at both June 30, 2025 and December 31, 2024.

Noninterest-bearing deposits to total deposits were 32.9% at June 30, 2025 compared to 33.3% at December 31, 2024.

Uninsured deposits are defined as the portion of deposit accounts in U.S.

offices that exceed the FDIC insurance limit and amounts in any other uninsured investment or deposit account that are classified as deposits and are not subject to any federal or state deposit insurance regimes.

Total uninsured deposits were $4.1 billion at March 31, 2025 and $4.0 billion at December 31, 2024, as calculated per regulatory guidance.

This was approximately 34% of deposits at both March 31, 2025 and December 31, 2024.

Total uninsured deposits were $4.0 billion at both June 30, 2025 and December 31, 2024, as calculated per regulatory guidance.

This was approximately 32.8% of deposits at June 30, 2025 and 33.7% at December 31, 2024.

The Company has existing and contingent sources of liquidity equivalent to approximately 150% of it uninsured deposits.

Off-balance-sheet sweep accounts totaled $5.5 billion at March 31, 2025 compared to $5.2 billion at December 31, 2024.

Off-balance-sheet sweep accounts totaled $5.3 billion at June 30, 2025 compared to $5.2 billion at December 31, 2024.

The movement of customers' funds into the Company's off-balance-sheet sweep accounts affected the balances of both cash and deposits.

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The Company has several lines of credit available.

At March 31, 2025, BancFirst had $911.4 million available on its line of credit from the FHLB of Topeka, Kansas.

At March 31, 2025, BancFirst had no advances outstanding under this line of credit.

At June 30, 2025, BancFirst had $906.6 million available on its line of credit from the FHLB of Topeka, Kansas.

At June 30, 2025, BancFirst had no advances outstanding under this line of credit.

Pegasus had a Federal Reserve discount window capacity of $119.0 million.

At March 31, 2025, Pegasus had no advances outstanding under this line of credit.

Worthington had $10.5 million in lines of credit with other financial institutions that serve as overnight federal funds facilities, a Federal Reserve discount window capacity of $30.4 million and an $87.6 million line of credit from the FHLB of Dallas, Texas to use for liquidity or to match-fund certain long-term rate loans.

Worthington had no advances outstanding at March 31, 2025 under any of these lines of credit.

At June 30, 2025, Pegasus had no advances outstanding under this line of credit.

Worthington had $10.5 million in lines of credit with other financial institutions that serve as overnight federal funds facilities, a Federal Reserve discount window capacity of $30.2 million and a $87.7 million line of credit from the FHLB of Dallas, Texas to use for liquidity or to match-fund certain long-term rate loans.

Worthington had no advances outstanding at June 30, 2025 under any of these lines of credit.

Capital Resources

Stockholders’ equity totaled $1.7 billion at March 31, 2025, an increase of $51.6 million from December 31, 2024.

In addition to net income of $56.1 million, other changes in stockholders’ equity during the three months ended March 31, 2025 included $891,000 related to common stock issuances for stock option exercises, $790,000 related to stock-based compensation and $9.1 million in accumulated other comprehensive income that were partially offset by $15.3 million in dividends.

The Company’s leverage ratio and total risk-based capital ratios at March 31, 2025 were well in excess of the regulatory requirements.

Stockholders’ equity totaled $1.7 billion at June 30, 2025, an increase of $106.9 million from December 31, 2024.

In addition to net income of $118.5 million, other changes in stockholders’ equity during the six months ended June 30, 2025 included $2.0 million related to common stock issuances for stock-based compensation plans, $1.7 million related to stock-based compensation and $15.3 million in accumulated other comprehensive income that were partially offset by $30.6 million in dividends.

The Company’s leverage ratio and total risk-based capital ratios at June 30, 2025 were well in excess of the regulatory requirements.

See Note (8) of the Notes to Consolidated Financial Statements for a discussion of capital ratios and requirements.

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What changed 10-Q

Item 1. Financial Statements