BANCFIRST CORP OK
For the period ended Mar 31, 2025. Filed May 9, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 9, 2025
BANF$115.20+0.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-05.
0000950170-24-121319
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-09.
0000950170-25-067899
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 107 previous paragraphs and 95 current paragraphs.
53 unchanged; 31 reworded; 11 added; 22 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 8 previous and 5 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (11)
Current report
Changes in the regulatory environment for the banking industry, including rule-making, supervision, examination, and enforcement.
Current report
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.
Current report
The increased time and effort related to ongoing and/or changed regulations from regulatory bodies could negatively impact noninterest expense.
Current report
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. 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.
Current report
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.
Current report
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.
Current report
Provision for Credit Losses on loans
Current report
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. The rate of net charge-offs to average total loans continues to be at a low level.
Current report
Noninterest expense increased by $9.4 million for first quarter of 2025 compared to the first quarter of 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.
Current report
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. The Company has existing and contingent sources of liquidity equivalent to approximately 150% of it uninsured deposits.
Current report
Lines of Credit
Removed paragraphs (22)
Previous report
Political pressures could further limit our ability to charge NSF and overdraft fees.
Previous report
The increased time, effort and noninterest expense related to ongoing and increased regulations from the Federal Reserve, the Consumer Financial Protection Bureau and the Securities and Exchange Commission, including requirements related to environmental, social and governance issues and climate disclosures.
Previous report
The Company’s net income for the third quarter of 2024 was $58.9 million compared to $51.0 million for the third quarter of 2023. Diluted net income per common share was $1.75 and $1.52 for the third quarter of 2024 and 2023, respectively.
Previous report
The Company’s net interest income for the third quarter of 2024 increased to $115.0 million from $104.3 million for the third quarter of 2023. Loan volume was the primary driver of the change in net interest income, but was partially offset by the impact of the shifting mix between interest-bearing and noninterest-bearing deposits. Net interest margin for the third quarter of 2024 was 3.78% compared to 3.73% for the third quarter of 2023. For the third quarter of 2024, the Company recorded a provision for credit losses of $3.0 million compared to $2.3 million for the third quarter of 2023.
Previous report
Noninterest expense for the third quarter of 2024 increased to $86.7 million compared to $81.2 million for the third quarter of 2023. The increase in noninterest expense was primarily related to growth in salaries and employee benefits of $4.0 million.
Previous report
Net interest income for the nine months ended September 30, 2024 increased $11.6 million or 3.6% compared to the nine months ended September 30, 2023. The primary driver of the increase in net interest income was higher loan volume. Rate increases also attributed to the increase in net interest income. Higher loan volume and increasing rates were partially offset by the expense associated with the shifting mix between interest and noninterest-bearing deposits. The Company’s net interest margin for the nine months ended September 30, 2024 decreased compared to the nine months ended September 30, 2023.
Previous report
Changes in the volume of earning assets and interest-bearing liabilities and changes in interest rates, determine the changes in net interest income. The following volume/rate analysis summarizes the relative contribution of each of these components to the changes in net interest income.
Previous report
VOLUME/RATE ANALYSIS
Previous report
Taxable Equivalent Basis
Previous report
The following table presents the change in net interest income for the three months ended September 30, 2024 compared to the three months ended September 30, 2023.
Previous report
The following table presents the change in net interest income for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023.
Previous report
Provision for Credit Losses
Previous report
The increased provision for credit losses for the three months ended September 30, 2024 compared to the three months ended September 30, 2023 was primarily due to loan growth. Net loan charge-offs were $775,000 for the third quarter of 2024 compared to net loan charge-offs of $1.5 million for the third quarter of 2023.
Previous report
The increased provision for credit losses for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 was primarily due to loan growth. Net loan charge-offs were $5.3 million for the nine months ended September 30, 2024, compared to $2.4 million for the same period of the prior year.
Previous report
Noninterest income decreased by $2.7 million for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023. The decrease in noninterest income was primarily due to an approximate $10.9 million reduction of interchange fees related to the impact of the Durbin Amendment, which was offset by increases in trust revenue, treasury income, sweep fees and insurance commissions.
Previous report
The Company is subject to political pressures that could limit our ability to charge for NSF and overdraft fees and could adversely impact our noninterest income. On April 1, 2022, the Company lowered the rates charged on NSF and overdraft fees. The Company also became subject to the reduced interchange fees under the Durbin Amendment, effective July 1, 2023. Consequently, the Company's interchange fee revenue was reduced by approximately $10.9 million in the first half of 2024, as shown above, and reduced by $11.2 million in the last half of 2023. The reduced interchange fees under the Durbin Amendment have now been fully implemented.
Previous report
Noninterest expense increased by $5.5 million for third quarter of 2024 compared to the third quarter of 2023. The increase in noninterest expenses was primarily related to growth in salaries and employee benefits of $4.0 million.
Previous report
For the nine months ended September 30, 2024, noninterest expense increased by $12.2 million compared to the nine months ended September 30, 2023. Higher noninterest expenses in 2024 was primarily related to growth in salaries and employee benefits of $8.4 million.
Previous report
The Company’s effective tax rate was 20.3% for the third quarter of 2024, compared to 21.8% for the third quarter of 2023.
Previous report
The Company’s effective tax rate was 21.4% for the first nine months of 2024, compared to 22.0% or the first nine months of 2023.
Previous report
Short-Term Borrowings and Lines of Credit
Previous report
Short-term borrowings, consisting primarily of federal funds purchased and repurchase agreements, are another source of funds for the Company. The level of these borrowings is determined by various factors, including customer demand and the Company’s ability to earn a favorable spread on the funds obtained. Short-term borrowings were $4.4 million at September 30, 2024 compared to $3.4 million at December 31, 2023.
Reworded paragraphs (31)
Previous wording
The following discussion and analysis of our financial condition as of September 30, 2024 and December 31, 2023 and results of operations for the three and nine months ended September 30, 2024 should be read in conjunction with our consolidated financial statements and notes to the consolidated financial statements for the year ended December 31, 2023, and the other information included inthe Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Certain risks, uncertainties and other factors, including those set forth under "Risk Factors" in Part I, Item 1A of the 2023 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.
Current wording
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 inthe 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.
Previous wording
Potential impacts of the adverse developments in the banking industry driven by high-profile bank failures, including impacts on customer confidence, demand deposit outflows and the regulatory response thereto.
Current wording
Potential impacts of adverse developments in the banking industry that could impact customer confidence.
Previous wording
A continuing shift in deposit mix could negatively impact net interest margin.
Current wording
Further shift in deposit mix from noninterest-bearing deposits to interest-bearing deposits could negatively impact net interest margin.
Previous wording
Local, regional, national and international economic conditions and the impact they may have on the Company and its customers.
Current wording
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.
Previous wording
Changes in the mix of loan geographies, sectors and types or the level of non-performing assets and charge-offs.
Current wording
Changes in the mix of loan sectors and types or the level of non-performing assets and charge-offs.
Previous wording
Noninterest income for the third quarter of 2024 totaled $48.7 million compared to $44.4 million for the third quarter of 2023. Trust revenue, treasury income, sweep fees and insurance commissions each increased when compared to third quarter last year.
Current wording
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.
Previous wording
At September 30, 2024, the Company’s total assets were $13.3 billion, an increase of $941.4 million from December 31, 2023. Loans grew $528.1 million from December 31, 2023, totaling $8.2 billion at September 30, 2024. Deposits totaled $11.5 billion, an increase of $774.2 million from December 31, 2023. Off-balance-sheet sweep accounts totaled $4.3 billion at September 30, 2024, down $60.6 million from December 31, 2023. The Company’s total stockholders’ equity at September 30, 2024 was $1.6 billion, an increase of $150.7 million over December 31, 2023.
Current wording
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. Deposits totaled $12.1 billion, an increase of $408.2 million from year-end 2024. Sweep accounts totaled $5.5 billion at March 31, 2025, up $324.6 million from December 31, 2024. The Company’s total stockholders’ equity was $1.7 billion, an increase of $51.6 million over December 31, 2024.
Previous wording
The following table presents 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. For these computations: (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 September 30, 2024 compared to $6.0 million for the three months ended September 30, 2023. Loan fees included in interest income were $15.9 million for the nine months ended September 30, 2024 compared to $17.3 million for the nine months ended September 30, 2023.
Current wording
The following table presents 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. For these computations: (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.
Previous wording
For the three months ended September 30, 2024, net interest income, which is the Company’s principal source of operating revenue, increased $10.6 million or 10.2% compared to the three months ended September 30, 2023. The primary driver of the increase in net interest income was higher loan volume. Rate increases also attributed to the increase in net interest income. Higher loan volume and increasing rates were partially offset by the expense associated with the shifting mix between interest and noninterest-bearing deposits. 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 for the third quarter of 2024 increased compared to the third quarter of 2023.
Current wording
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. 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.
Previous wording
Noninterest income increased by $4.3 million for the third quarter of 2024 compared to the third quarter of 2023. Trust revenue, treasury income, sweep fees and insurance commissions each increased when compared to last year.
Current wording
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.
Previous wording
Noninterest income included non-sufficient funds ("NSF") and overdraft fees totaling $8.2 million and $7.4 million for the three months ended September 30, 2024 and 2023, respectively. This represents 16.9% and 16.7% of the Company’s noninterest income for the respective periods. In addition, the Company had debit card usage and interchange fees totaling $6.7 million and $6.6 million during the three months ended September 30, 2024 and 2023, respectively. This represents 13.7% and 14.9% of the Company’s noninterest income for the respective periods.
Current wording
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. This represents 13.3% and 14.6% of the Company’s noninterest income for the respective periods.
Previous wording
The primary reasons for the difference between the Company’s effective tax rate and the federal statutory rate were tax-exempt income, nondeductible expenses, federal and state tax credits and state tax expense.
Current wording
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. 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.
Previous wording
The aggregate of cash and due from banks, federal funds sold and interest-bearing deposits with banks increased by $593.3 million or 24.7%, to $3.0 billion from December 31, 2023 to September 30, 2024. The increase was related to an increase of interest-bearing deposits partially driven by maturing securities.
Current wording
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 increase was related to an increase of interest-bearing deposits in addition to maturing securities.
Previous wording
At September 30, 2024, total debt securities decreased $178.2 million, or 11.5% compared to December 31, 2023. 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 $31.9 million at September 30, 2024, compared to a net unrealized loss of $65.5 million at December 31, 2023. These unrealized losses, net of income tax, are included in the Company’s stockholders’ equity as accumulated other comprehensive loss in the amounts of $24.4 million at September 30, 2024 and $50.0 million at December 31, 2023. During the nine months ended September 30, 2024, the Company purchased $522,000 of debt securities and did not sell any debt securities.
Current wording
At March 31, 2025, total debt securities decreased $44.3 million, or 3.7% 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.
Previous wording
At September 30, 2024, total loans increased $528.1 million or 6.9% compared to December 31, 2023 as a result of internal loan growth. The preponderance of internal loan growth was from the Company's Oklahoma subsidiary BancFirst. BancFirst's strong liquidity was the driving force behind the loan growth.
Current wording
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. Of the total increase in loans, commercial real estate made up the largest increase with $58.4 million. The internal loan growth was primarily from the Company's Oklahoma subsidiary BancFirst.
Previous wording
The Company's nonaccrual and past due loans have increased, however, the level of these loans remains low. The Company’s nonaccrual loans are primarily comprised of construction and development real estate loans, commercial real estate loans and commercial non-real estate loans. Nonaccrual loans negatively impact the Company’s net interest margin. A loan is placed on nonaccrual status when, in the opinion of management, the future collectability of both interest and principal is in serious doubt. Interest income is not recognized until the principal balance is fully collected. 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 $2.6 million for the nine months ended September 30, 2024 and $1.1 million for the nine months ended September 30, 2023. Only a small amount of this interest is expected to be ultimately collected. Approximately $7.5 million of nonaccrual loans were guaranteed by government agencies at September 30, 2024.
Current wording
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 negatively impact the Company’s net interest margin. A loan is placed on nonaccrual status when, in the opinion of management, the future collectability of both interest and principal is in serious doubt. Interest income is not recognized until the principal balance is fully collected. 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. 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.
Previous wording
The classification of a loan as nonaccrual does not necessarily indicate that loan principal and interest will ultimately be uncollectible; although, in an economic downturn, the Company’s experience has been that the risk of loss is heightened. The above normal risk associated with nonaccrual loans has been considered in the determination of the allowance for credit losses. The level of nonaccrual loans and credit losses could rise over time as a result of adverse economic conditions.
Current wording
The classification of a loan as nonaccrual does not necessarily indicate that loan principal and interest will ultimately be uncollectible; although, in an economic downturn, the Company’s experience has been that the level of collections decline. The above normal risk associated with nonaccrual loans has been considered in the determination of the allowance for credit losses. The level of nonaccrual loans and credit losses could rise over time as a result of adverse economic conditions.
Previous wording
As of January 1, 2023, the Company adopted Accounting Standards Update (“ASU”) No. 2022-02, which eliminated the Troubled Debt Restructurings (“TDR”) recognition and measurement guidance and, instead, requires that the Company evaluate, based on the accounting for loan modifications, whether the modification represents a new loan or a continuation of an existing loan when a borrower is experiencing financial difficulty. 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 September 30, 2024 was approximately $8.4 million compared to $5.3 million during the year ended December 31, 2023.
Current wording
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.
Previous wording
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. Write-downs arising at the time of reclassification of such properties from loans to OREO are charged directly to the allowance for credit losses. Any losses on bank premises designated to be sold are charged to operating expense at the time of transfer from premises to OREO. Decreases in values of properties subsequent to their classification as OREO are charged to operating expense.
Current wording
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. 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. Write-downs arising at the time of reclassification of such properties from loans to OREO are charged directly to the allowance for credit losses. Any losses on bank premises designated to be sold are charged to operating expense at the time of transfer from premises to OREO. 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.
Previous wording
OREO included a larger commercial real estate property recorded at $31.1 million at September 30, 2024 and $29.4 million at December 31, 2023. During the period ended September 30, 2024, the Company made $1.7 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. Operating expense for this property is included in net expense from OREO in other noninterest expense on the consolidated statements of comprehensive income.
Current wording
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. Rental income for this property is included in other noninterest income on the consolidated statements of comprehensive income. Operating expense for this property is included in net expense from OREO in other noninterest expense on the consolidated statements of comprehensive income.
Previous wording
Identifiable intangible assets and goodwill totaled $196.3 million and $199.0 million at September 30, 2024 and December 31, 2023, respectively.
Current wording
Identifiable intangible assets and goodwill totaled $194.5 million and $195.4 million at March 31, 2025 and December 31, 2024, respectively.
Previous wording
Other assets includes the cash surrender value of key-man life insurance policies totaling $83.9 million and $84.4 million at September 30, 2024 and December 31, 2023, respectively.
Current wording
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.
Previous wording
Derivative financial instruments consisting of oil and gas swaps and option contracts are included in other assets and totaled $26.4 million at September 30, 2024 and $41.1 million at December 31, 2023. They require a daily margin to be posted, which fluctuates with oil and gas prices and customer activity. The Company had a margin liability included in other liabilities in the amount of $10.7 million at September 30, 2024 and $15.5 million at December 31, 2023. See Note (10) of the Notes to Consolidated Financial Statements for a complete discussion of the Company’s derivative financial instruments.
Current wording
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. 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. See Note (10) of the Notes to Consolidated Financial Statements for a complete discussion of the Company’s derivative financial instruments.
Previous wording
Equity securities are reported in other assets on the Company’s consolidated balance sheet. The Company invests in equity securities without readily determinable fair values. 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 September 30, 2024 and $13.1 million at December 31, 2023. The Company reviews its portfolio of equity securities for impairment at least quarterly.
Current wording
Equity securities are reported in other assets on the Company’s consolidated balance sheet. The Company invests in equity securities without readily determinable fair values. 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 Company reviews its portfolio of equity securities for impairment at least quarterly.
Previous wording
Low-Income Housing and New Market Tax Credit Investments
Current wording
Low-Income Housing, New Market Tax Credit Investments and Historic Tax Credit Investments
Previous wording
During 2024, the Company’s low-income housing tax credit ("LIHTC") investments and New Markets Tax Credits ("NMTC") investments, which are included in other assets on the Company’s consolidated balance sheet, increased $10.2 million.
Current wording
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.
Previous wording
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. Through interest rates paid, service charge levels and services offered, the Company can affect its level of deposits to a limited extent. The level and maturity of funding necessary to support the Company’s lending and investment functions is determined through the Company’s asset/liability management process. The Company currently does not rely heavily on long-term borrowings and does not utilize brokered or reciprocal deposits. 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 a total of cash and due from banks and interest-bearing deposits with banks to total assets of 22.5%.
Current wording
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. Through interest rates paid, service charge levels and services offered, the Company can affect its level of deposits to a limited extent. The level and maturity of funding necessary to support the Company’s lending and investment functions is determined through the Company’s asset/liability management process. The Company currently does not rely heavily on long-term borrowings and does not utilize brokered CDs. 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.
Previous wording
At September 30, 2024, deposits totaled $11.5 billion, an increase of $774.2 million from December 31, 2023. 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 95.8% at September 30, 2024 and 97.4% at December 31, 2023. Noninterest-bearing deposits to total deposits were 33.6% at September 30, 2024 compared to 37.2% at December 31, 2023. Quantitative tightening by the Federal Reserve and competition for deposits has increased, and available yields have similarly increased, causing noninterest-bearing deposits to move to interest-bearing deposits and off-balance-sheet sweep account products.
Current wording
At March 31, 2025, deposits totaled $12.1 billion, an increase of $408.2 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.
Previous wording
Off-balance-sheet sweep accounts totaled $4.3 billion at both September 30, 2024 and December 31, 2023. The movement of customers' funds into the Company's off-balance-sheet sweep accounts affected the balances of both cash and deposits.
Current wording
Off-balance-sheet sweep accounts totaled $5.5 billion at March 31, 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.
Previous wording
The Company has several lines of credit available. At September 30, 2024, BancFirst had $877.1 million available on its line of credit from the FHLB of Topeka, Kansas. At September 30, 2024, BancFirst had no advances outstanding under this line of credit. Pegasus had a Federal Reserve discount window capacity of $125.6 million. At September 30, 2024, 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 $29.4 million and a $81.8 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 September 30, 2024 under any of these lines of credit.
Current wording
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. Pegasus had a Federal Reserve discount window capacity of $127.7 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.
Previous wording
Stockholders’ equity totaled $1.6 billion at September 30, 2024, an increase of $150.7 million from December 31, 2023. In addition to net income of $159.9 million, other increases in stockholders’ equity during the nine months ended September 30, 2024 included $6.2 million related to common stock issuances for stock option exercises, $2.6 million related to stock-based compensation and $25.6 million in accumulated other comprehensive income, that were partially offset by $43.6 million in dividends. The Company’s leverage ratio and other risk-based capital ratios at September 30, 2024 were well in excess of the regulatory requirements.
Current wording
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.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Noninterest income included NSF and overdraft fees totaling $22.7 million and $20.5 million during the nine months ended September 30, 2024 and 2023, respectively. This represents 16.5% and 14.6% of the Company’s noninterest income for the respective periods. In addition, the Company had debit card usage and interchange fees totaling $20.0 million and $31.0 million during the nine months ended September 30, 2024 and 2023, respectively. This represents 14.5% and 22.1% of the Company’s noninterest income for the respective periods.