BANCFIRST CORP /OK/

Previous wording

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 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.

Current wording

The following discussion and analysis of our financial condition as of September 30, 2025 and December 31, 2024 and results of operations for the three and nine months ended September 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 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

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.

Current wording

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

Previous wording

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.

Current wording

The Company’s net income for the third quarter of 2025 was $62.7 million, compared to $58.9 million for the third quarter of 2024. Diluted net income per common share was $1.85 and $1.75 for the third quarter of 2025 and 2024, respectively.

Previous wording

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 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.

Current wording

The Company’s net interest income for the third quarter of 2025 increased to $125.6 million from $115.0 million for the third 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 improved slightly to 3.79% for the third quarter of 2025 from 3.78% for the third quarter of 2024. The Company recorded a provision for credit losses on loans of $4.2 million in the third quarter of 2025 compared to $3.0 million for the third quarter of 2024.

Previous wording

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.

Current wording

Noninterest expense grew to $92.1 million for the third quarter of 2025 compared to $86.7 million in the same quarter in 2024. The increase in noninterest expense was primarily due to growth in salaries and employee benefits of $3.5 million. Also contributing to the increase was occupancy expense, due largely to repairs and maintenance, and increases in other noninterest expense driven primarily by professional fees.

Previous wording

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 $5.3 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.

Current wording

At September 30, 2025, the Company’s total assets were $14.2 billion, an increase of $643.8 million from December 31, 2024. Loans grew $254.0 million from December 31, 2024, totaling $8.3 billion at September 30, 2025. Deposits totaled $12.1 billion, an increase of $399.8 million from year-end 2024. Off-balance-sheet sweep accounts totaled $4.9 billion at September 30, 2025, down $316.4 million from December 31, 2024. The Company’s total stockholders’ equity was $1.8 billion, an increase of $161.6 million over December 31, 2024.

Previous wording

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.

Current wording

Asset quality continued to be strong. Nonaccrual loans totaled $57.3 million, representing 0.69% of total loans at September 30, 2025, down from 0.72% at year-end 2024. The allowance for credit losses to total loans was 1.20% at September 30, 2025, down from 1.24% at December 31, 2024. Net charge-offs were $1.7 million for the third quarter of 2025, compared to $775,000 for the third quarter of 2024.

Previous wording

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. 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 $5.1 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.

Current wording

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. 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 $5.1 million for the three months ended September 30, 2025 compared to $5.0 million for the three months ended September 30, 2024. Loan fees included in interest income were $15.2 million for the nine months ended September 30, 2025 compared to $15.9 million for the nine months ended September 30, 2024.

Previous wording

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.

Current wording

For the three months ended September 30, 2025, net interest income, which is the Company’s principal source of operating revenue, increased $10.7 million or 9.3% compared to the three months ended September 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.

Previous wording

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.

Current wording

Net interest income for the nine months ended September 30, 2025 increased $31.9 million or 9.6% compared to the nine months ended September 30, 2024. Higher loan volume along with general growth in earning assets were the primary drivers to the increase.

Previous wording

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.

Current wording

Net loan charge-offs were $1.7 million for the third quarter of 2025 compared to net loan charge-offs of $775,000 for the third quarter of 2024. The rate of net charge-offs to average total loans continues to be at a low level.

Previous wording

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.

Current wording

Net loan charge-offs were $6.9 million for the nine months ended September 30, 2025, compared to $5.3 million for the same period of the prior year.

Previous wording

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.

Current wording

Noninterest income included non-sufficient funds ("NSF") and overdraft fees totaling $8.3 million and $8.2 million for the three months ended September 30, 2025 and 2024, respectively. This represents 16.6% and 16.9% 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 $6.7 million during the three months ended September 30, 2025 and 2024, respectively. This represents 13.8% and 13.7% of the Company’s noninterest income for the respective periods.

Previous wording

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.

Current wording

Noninterest income increased by $9.3 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. Trust revenue, treasury income, sweep fees, insurance commissions and gain on sale of other assets each increased when compared to the same period last year.

Previous wording

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.

Current wording

Noninterest income included NSF and overdraft fees totaling $23.3 million and $22.7 million during the nine months ended September 30, 2025 and 2024, respectively. This represents 15.9% and 16.5% of the Company’s noninterest income for the respective periods. In addition, the Company had debit card usage and interchange fees totaling $20.3 million and $20.0 million during the nine months ended September 30, 2025 and 2024, respectively. This represents 13.8% and 14.5% of the Company’s noninterest income for the respective periods.

Previous wording

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.

Current wording

Noninterest expense increased by $5.3 million for third quarter of 2025 compared to the third quarter of 2024. The increase in noninterest expenses was primarily related to growth in salaries and employee benefits of $3.5 million. Also contributing to the increase was occupancy expense, due largely to repairs and maintenance, and increases in other noninterest expense driven primarily by professional fees.

Previous wording

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.

Current wording

For the nine months ended September 30, 2025, noninterest expense increased by $17.6 million compared to the nine months ended September 30, 2024. Higher noninterest expenses in 2025 were primarily related to growth in salaries and employee benefits of $9.8 million, an increase in occupancy expense of $2.0 million and an increase in the net expense from other real estate owned of $1.8 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.

Previous wording

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.

Current wording

The Company’s effective tax rate was 21.2% for the nine months ended September 30, 2025, compared to 21.4% for the nine months ended September 30, 2024.

Previous wording

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.

Current wording

The aggregate of cash and due from banks, federal funds sold and interest-bearing deposits with banks increased by $500.2 million or 14.1%, to $4.1 billion from December 31, 2024 to September 30, 2025. The increase was related to an increase of interest-bearing deposits in addition to maturing securities.

Previous wording

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 $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.

Current wording

At September 30, 2025, total debt securities decreased $195.8 million, or 16.2% 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 unrealized loss on debt securities available for sale, before taxes, was $16.8 million at September 30, 2025, compared to an unrealized loss of $43.1 million at December 31, 2024. These unrealized losses, net of income taxes, of $12.8 million at September 30, 2025 and $32.9 million at December 31, 2024 are included in the Company’s stockholders’ equity as accumulated other comprehensive loss. During the nine months ended September 30, 2025, the Company purchased $508,000 of debt securities compared to $522,000 during the nine months ended September 30, 2024. The Company did not sell any debt securities during the nine months ended September 30, 2025 or 2024. The Company did not recognize a gain or loss on debt securities during the nine months ended September 30, 2025 or 2024. The Company had maturities and paydowns of debt securities totaling $223.0 million during the nine months ended September 30, 2025 and $213.1 million during the nine months ended September 30, 2024.

Previous wording

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. The internal loan growth was primarily from the Company's Oklahoma subsidiary BancFirst.

Current wording

At September 30, 2025, total loans increased $254.0 million or 3.2% 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 $130.8 million. The internal loan growth was primarily from the Company's Oklahoma subsidiary BancFirst.

Previous wording

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. 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 $2.3 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 $9.5 million of nonaccrual loans were guaranteed by government agencies at June 30, 2025.

Current wording

Nonaccrual loans totaled $57.3 million at September 30, 2025 compared to $58.0 million at December 31, 2024. The Company’s nonaccrual commercial non-real estate loans made up 15% and nonaccrual commercial real estate made up 65% of nonaccrual 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 $3.6 million for the nine months ended September 30, 2025 and $2.6 million for the nine months ended September 30, 2024. Only a small amount of this interest is expected to be ultimately collected. Approximately $10.0 million of nonaccrual loans were guaranteed by government agencies at September 30, 2025.

Previous wording

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.

Current wording

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 nine months ended September 30, 2025 was approximately $6.0 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. 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.

Current 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. During the nine months ended September 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 $109,000 for the nine months ended September 30, 2025 compared to $72,000 for the nine months ended September 30, 2024.

Previous wording

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. 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 also included a larger commercial real estate property recorded at $31.1 million at September 30, 2025 and $28.1 million at December 31, 2024. During the nine months ended September 30, 2025, the Company made $3.0 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 $193.7 million and $195.4 million at June 30, 2025 and December 31, 2024, respectively.

Current wording

Identifiable intangible assets and goodwill totaled $192.8 million and $195.4 million at September 30, 2025 and December 31, 2024, respectively.

Previous wording

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.

Current wording

Other assets included the cash surrender value of key-man life insurance policies totaling $85.7 million at September 30, 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 $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 $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.

Current wording

Derivative financial instruments consisting of oil and gas swaps and option contracts are included in other assets and totaled $15.9 million at September 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 $48,000 at September 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.

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 $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.

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 $8.7 million at September 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.

Previous wording

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.

Current wording

During 2025, the Company’s low-income housing tax credit ("LIHTC") investments increased $37.5 million totaling $96.2 million at September 30, 2025, New Markets Tax Credits ("NMTC") investments increased $2.6 million totaling $10.1 million at September 30, 2025 and the Historic Tax Credit Investments remained at $6.3 million at September 30, 2025, all of which are included in other assets on the Company’s consolidated balance sheet. Unfunded commitments related to these investments increased $31.9 million totaling $71.4 million at September 30, 2025, all of which are included in other liabilities 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 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 28.5% at June 30, 2025, compared to 26.2% at December 31, 2024.

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 28.6% at September 30, 2025, compared to 26.2% at December 31, 2024.

Previous wording

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 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.

Current wording

At September 30, 2025, deposits totaled $12.1 billion, an increase of $399.8 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 95.1% at September 30, 2025 compared to 95.5% at December 31, 2024. Noninterest-bearing deposits to total deposits were 31.5% at September 30, 2025 compared to 33.3% at December 31, 2024.

Previous wording

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 $4.0 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.

Current wording

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 September 30, 2025 compared to $4.0 billion at December 31, 2024, as calculated per regulatory guidance. This was approximately 34.1% of deposits at September 30, 2025 and 33.7% at December 31, 2024. The Company has existing and contingent sources of liquidity equivalent to approximately 150% of its uninsured deposits.

Previous wording

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.

Current wording

Off-balance-sheet sweep accounts totaled $4.9 billion at September 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.

Previous wording

The Company has several lines of credit available. 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 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.

Current wording

The Company has several lines of credit available. At September 30, 2025, BancFirst had $923.2 million available on its line of credit from the FHLB of Topeka, Kansas. At September 30, 2025, BancFirst had no advances outstanding under this line of credit. Pegasus had a Federal Reserve discount window capacity of $82.2 million. At September 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 $30.9 million and a $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 September 30, 2025 under any of these lines of credit.

Previous wording

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.

Current wording

Stockholders’ equity totaled $1.8 billion at September 30, 2025, an increase of $161.6 million from December 31, 2024. In addition to net income of $181.1 million, other changes in stockholders’ equity during the nine months ended September 30, 2025 included $4.6 million related to common stock issuances for stock-based compensation plans, $2.8 million related to stock-based compensation and $20.1 million in accumulated other comprehensive income that were partially offset by $46.9 million in dividends. The Company’s leverage ratio and total risk-based capital ratios at September 30, 2025 were well in excess of the regulatory requirements.