BANCFIRST CORP /OK/

Previous wording

The following discussion and analysis of our financial condition as of June 30, 2026 and December 31, 2025 and results of operations for the three and six months ended June 30, 2026 should be read in conjunction with our consolidated financial statements and notes to the consolidated financial statements for the year ended December 31, 2025, and the other information included inthe Company’s Annual Report on Form 10-K for the year ended December 31, 2025. Certain risks, uncertainties and other factors, including those set forth under "Risk Factors" in Part I, Item 1A of the 2025 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, 2026 and December 31, 2025 and results of operations for the three and nine months ended September 30, 2026 should be read in conjunction with our consolidated financial statements and notes to the consolidated financial statements for the year ended December 31, 2025, and the other information included inthe Company’s Annual Report on Form 10-K for the year ended December 31, 2025. Certain risks, uncertainties and other factors, including those set forth under "Risk Factors" in Part I, Item 1A of the 2025 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

The Company’s net income for the second quarter of 2026 was $66.7 million, compared to $62.3 million for the second quarter of 2025. Diluted net income per common share was $1.96 and $1.85 for the second quarter of 2026 and 2025, respectively.

Current wording

The Company’s net income for the third quarter of 2026 was $67.3 million, compared to $62.7 million for the third quarter of 2025. Diluted net income per common share was $1.97 and $1.85 for the third quarter of 2026 and 2025, respectively.

Previous wording

The Company’s net interest income for the second quarter of 2026 increased to $133.5 million from $121.3 million for the second quarter of 2025. Higher loan volume and general growth in earning assets were the primary drivers of the change in net interest income. Net interest margin was 3.84% for the second quarter of 2026 compared to 3.75% for the second quarter of 2025. The Company recorded a provision for credit losses of $4.9 million in the second quarter of 2026 compared to $1.4 million for the second quarter of 2025.

Current wording

The Company’s net interest income for the third quarter of 2026 increased to $136.0 million from $125.6 million for the third quarter of 2025. Higher loan volume and general growth in earning assets were the primary drivers of the change in net interest income. Net interest margin was 3.85% for the third quarter of 2026 compared to 3.79% for the third quarter of 2025. The Company recorded a provision for credit losses of $3.1 million in the third quarter of 2026 compared to $4.4 million for the third quarter of 2025.

Previous wording

Noninterest income for the quarter totaled $53.9 million compared to $48.0 million in the same quarter last year. Trust revenue, service charges on deposits, securities transactions, and treasury income each increased when compared to the second quarter of 2025. The Company also recorded gains of $2.9 million related to bank owned life insurance claims during the quarter. The increase in noninterest income was partially offset by a decrease in insurance commissions.

Current wording

Noninterest income for the quarter totaled $51.4 million compared to $49.9 million in the same quarter last year. Service charges on deposits and treasury income each increased when compared to the third quarter of 2025.

Previous wording

Noninterest expense grew to $97.5 million for the quarter ended June 30, 2026 compared to $88.2 million in the same quarter in 2025. The increase in noninterest expense was primarily related to growth in salaries and employee benefits of $5.2 million. The total salaries and employee benefits expenses recorded of $60.3 million is after a favorable adjustment to the funded employee benefit trust of $828,000. Also driving the increase in noninterest expense was net expense from other real estate owned, which increased $1.6 million period to period.

Current wording

Noninterest expense grew to $98.2 million for the quarter ended September 30, 2026 compared to $92.1 million in the same quarter in 2025. The increase in noninterest expense was primarily related to growth in salaries and employee benefits of $4.1 million.

Previous wording

At June 30, 2026, the Company’s total assets were $15.1 billion, an increase of $243.4 million from December 31, 2025. Loans grew $110.6 million from December 31, 2025, totaling $8.7 billion at June 30, 2026. Deposits totaled $12.8 billion, an increase of $155.9 million from year-end 2025. Sweep accounts totaled $5.0 billion at June 30, 2026, up $100.8 million from December 31, 2025. The Company’s total stockholders’ equity was $2.0 billion, an increase of $103.0 million over December 31, 2025.

Current wording

At September 30, 2026, the Company’s total assets were $15.0 billion, an increase of $182.3 million from December 31, 2025. Loans grew $187.9 million from December 31, 2025, totaling $8.7 billion at September 30, 2026. Deposits totaled $12.7 billion, an increase of $29.3 million from year-end 2025. Sweep accounts totaled $4.7 billion at September 30, 2026, down $282.5 million from December 31, 2025. The Company’s total stockholders’ equity was $2.0 billion, an increase of $142.9 million over December 31, 2025.

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 $6.2 million for the three months ended June 30, 2026 compared to $5.1 million for the three months ended June 30, 2025. Loan fees included in interest income were $11.3 million for the six months ended June 30, 2026 compared to $10.1 million for the six months ended June 30, 2025.

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 $5.3 million for the three months ended September 30, 2026 compared to $5.1 million for the three months ended September 30, 2025. Loan fees included in interest income were $16.6 million for the nine months ended September 30, 2026 compared to $15.2 million for the nine months ended September 30, 2025.

Previous wording

For the three months ended June 30, 2026, net interest income, which is the Company’s principal source of operating revenue, increased $12.3 million or 10.1% compared to the three months ended June 30, 2025. Higher loan volume and 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, 2026, net interest income, which is the Company’s principal source of operating revenue, increased $10.4 million or 8.3% compared to the three months ended September 30, 2025. Higher loan volume and 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, 2026 increased $23.9 million or 10.1% compared to the six months ended June 30, 2025. Higher loan volume and general growth in earning assets were the primary drivers to the increase.

Current wording

Net interest income for the nine months ended September 30, 2026 increased $34.3 million or 9.5% compared to the nine months ended September 30, 2025. Higher loan volume and general growth in earning assets were the primary drivers to the increase.

Previous wording

Net loan charge-offs were $2.4 million for the second quarter of 2026 compared to net loan charge-offs of $4.7 million for the second quarter of 2025. The rate of net charge-offs to average total loans continues to be at a low level.

Current wording

Net loan charge-offs were $4.0 million for the third quarter of 2026 compared to net loan charge-offs of $1.7 million for the third quarter of 2025. The rate of net charge-offs to average total loans continues to be at a low level. Net charge-offs of $1.8 million for the third quarter of 2026, were related to purchased credit deteriorated (PCD) loans. At acquisition, the Company identified these loans as credit deteriorated and recorded reserves for expected credit losses. These loans performed in line with expectations subsequent to acquisition. There were no charge-offs for PCD loans in the third quarter of 2025.

Previous wording

Net loan charge-offs were $3.9 million for the six months ended June 30, 2026, compared to $5.2 million for the same period of the prior year.

Current wording

Net loan charge-offs were $7.9 million for the nine months ended September 30, 2026, compared to $6.9 million for the same period of the prior year. Net charge-offs of $2.6 million for the nine months ended September 30, 2026, were related to purchased credit deteriorated loans. At acquisition, the Company identified these loans as credit deteriorated and recorded reserves for expected credit losses. These loans performed in line with expectations subsequent to acquisition. There were no material charge-offs for PCD loans in the nine months ended September 30, 2025.

Previous wording

Noninterest income included non-sufficient funds ("NSF") and overdraft fees totaling $8.1 million and $7.6 million for the three months ended June 30, 2026 and 2025, respectively. This represents 15.1% and 15.8% of the Company’s noninterest income for the respective periods. In addition, the Company had debit card usage and interchange fees totaling $7.2 million and $6.9 million during the three months ended June 30, 2026 and 2025, respectively. This represents 13.3% and 14.3% of the Company’s noninterest income for the respective periods.

Current wording

Noninterest income included non-sufficient funds ("NSF") and overdraft fees totaling $8.9 million and $8.3 million for the three months ended September 30, 2026 and 2025, respectively. This represents 17.4% 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 $7.2 million and $6.9 million during the three months ended September 30, 2026 and 2025, respectively. This represents 14.0% and 13.8% of the Company’s noninterest income for the respective periods.

Previous wording

Noninterest income increased by $8.4 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. Trust revenue, service charges on deposits, securities transactions, and treasury income each increased when compared to second quarter last year. The increase in noninterest income was partially offset by a decrease in insurance commissions.

Current wording

Noninterest income increased by $9.9 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. Service charges on deposits, securities transactions and treasury income each increased when compared to third quarter last year.

Previous wording

Noninterest income included NSF and overdraft fees totaling $16.1 million and $15.0 million during the six months ended June 30, 2026 and 2025, respectively. This represents 15.3% and 15.5% of the Company’s noninterest income for the respective periods. In addition, the Company had debit card usage and interchange fees totaling $14.0 million and $13.4 million during the six months ended June 30, 2026 and 2025, respectively. This represents 13.3% and 13.8% of the Company’s noninterest income for the respective periods.

Current wording

Noninterest income included NSF and overdraft fees totaling $25.0 million and $23.3 million during the nine months ended September 30, 2026 and 2025, respectively. This represents 16.0% 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 $21.2 million and $20.3 million during the nine months ended September 30, 2026 and 2025, respectively. This represents 13.5% and 13.8% of the Company’s noninterest income for the respective periods.

Previous wording

For the six months ended June 30, 2026, noninterest expense increased by $13.9 million compared to the six months ended June 30, 2025. The increase in noninterest expenses was primarily related to growth in salaries and employee benefits of $9.4 million. The total salaries and employee benefits recorded of $119.2 million for the six months ended June 30, 2026 is after a favorable adjustment to the funded employee benefit trust of $2.6 million. The total salaries and benefits expenses recorded of $109.7 million for the six months ended June 30, 2025 is after a favorable adjustment to the funded employee benefit trust of $649,000. Also driving the increase in noninterest expense was net expense from other real estate owned, which increased $2.6 million compared to the same period last year, along with conversion expenses of approximately $1.2 million related to ABOK. In addition, during the six months ended June 30, 2025 the Company recorded an expense related to the disposition of certain equity investments no longer permissible under the Volcker Rule, no such equivalent expense was recorded in 2026.

Current wording

For the nine months ended September 30, 2026, noninterest expense increased by $20.1 million compared to the nine months ended September 30, 2025. The increase in noninterest expenses was primarily related to growth in salaries and employee benefits of $13.6 million. The total salaries and employee benefits recorded of $181.0 million for the nine months ended September 30, 2026 is after a favorable adjustment to the funded employee benefit trust of $2.8 million. The total salaries and benefits expenses recorded of $167.4 million for the nine months ended September 30, 2025 is after a unfavorable adjustment to the funded employee benefit trust of $404,000. Also driving the increase in noninterest expense was net expense from other real estate owned, which increased $2.2 million compared to the same period last year, along with conversion expenses of approximately $1.2 million related to ABOK.

Previous wording

The Company’s effective tax rate was 21.6% for the second quarter of 2026, compared to 21.8% for the second quarter of 2025.

Current wording

The Company’s effective tax rate was 21.6% for the nine months ended September 30, 2026, compared to 21.2% for the nine months ended September 30, 2025.

Previous wording

The aggregate of cash and due from banks, federal funds sold and interest-bearing deposits with banks decreased by $91.5 million or 2.0%, to $4.4 billion from December 31, 2025 to June 30, 2026. The decrease was related to the reduction of federal funds sold.

Current wording

The aggregate of cash and due from banks, federal funds sold and interest-bearing deposits with banks decreased by $284.1 million or 6.3%, to $4.2 billion from December 31, 2025 to September 30, 2026. The decrease was related to the movement of cash from interest bearing deposits into debt securities and the reduction of federal funds sold.

Previous wording

At June 30, 2026, total debt securities increased $188.3 million, or 20.4% compared to December 31, 2025. 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 $10.8 million at both June 30, 2026 and December 31, 2025. These unrealized losses of $8.2 million at June 30, 2026 and $8.3 million at December 31, 2025 are included in the Company’s stockholders’ equity as accumulated other comprehensive loss, net of income tax. During the six months ended June 30, 2026, the Company purchased $321.2 million of debt securities compared to $233,000 during the six months ended June 30, 2025. The Company did not recognize a gain or loss on debt securities during the six months ended June 30, 2026 or 2025. The Company had maturities and paydowns of debt securities totaling $134.1 million during the six months ended June 30, 2026 and $127.7 million during the six months ended June 30, 2025.

Current wording

At September 30, 2026, total debt securities increased $176.0 million, or 19.0% compared to December 31, 2025. 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 $26.7 million at September 30, 2026 and $10.8 million at December 31, 2025. These unrealized losses of $20.3 million at September 30, 2026 and $8.3 million at December 31, 2025 are included in the Company’s stockholders’ equity as accumulated other comprehensive loss, net of income tax. During the nine months ended September 30, 2026, the Company purchased $438.9 million of debt securities compared to $508,000 during the nine months ended September 30, 2025. The Company did not recognize a gain or loss on debt securities during the nine months ended September 30, 2026 or 2025. The Company had maturities and paydowns of debt securities totaling $248.8 million during the nine months ended September 30, 2026 and $223.0 million during the nine months ended September 30, 2025.

Previous wording

At June 30, 2026, total loans increased $110.6 million or 1.3% compared to December 31, 2025 as a result of internal loan growth. Of the total increase in loans, commercial real estate made up the largest increase. The preponderance of internal loan growth was from the Company's Oklahoma subsidiary BancFirst.

Current wording

At September 30, 2026, total loans increased $187.9 million or 2.2% compared to December 31, 2025 as a result of internal loan growth. Of the total increase in loans, commercial real estate made up the largest increase. The preponderance of internal loan growth was from the Company's Oklahoma subsidiary BancFirst.

Previous wording

Nonaccrual loans totaled $81.4 million at June 30, 2026 compared to $61.1 million at December 31, 2025. At June 30, 2026, the Company’s nonaccrual commercial non-real estate loans made up 52% and nonaccrual commercial real estate made up 32% 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 $2.9 million for the six months ended June 30, 2026 and $2.3 million for the six months ended June 30, 2025. Only a small amount of this interest is expected to be ultimately collected. Approximately $7.9 million of nonaccrual loans were guaranteed by government agencies at June 30, 2026.

Current wording

Nonaccrual loans totaled $75.6 million at September 30, 2026 compared to $61.1 million at December 31, 2025. At September 30, 2026, the Company’s nonaccrual commercial non-real estate loans made up 51% and nonaccrual commercial real estate made up 29% 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 $4.5 million for the nine months ended September 30, 2026 and $3.6 million for the nine months ended September 30, 2025. Only a small amount of this interest is expected to be ultimately collected. Approximately $4.1 million of nonaccrual loans were guaranteed by government agencies at September 30, 2026.

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, 2026 was approximately $3.7 million compared to $6.4 million during the year ended December 31, 2025.

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, 2026 was approximately $39.5 million compared to $6.4 million during the year ended December 31, 2025. The increase from year-end is primarily due to one commercial loan modified during the third quarter of 2026.

Previous wording

Other real estate owned ("OREO") and repossessed assets increased $12.6 million during the period ended June 30, 2026. There was $1.8 million of tenant improvements related to bank owned OREO property. As part of the ABOK conversion, $1.9 million of property previously held for bank operations was moved to OREO. Additionally, a commercial property was taken into OREO valued at $9.6 million. The remainder of the change in OREO and repossessed assets resulted from normal bank operations. 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") and repossessed assets increased $11.2 million during the period ended September 30, 2026. There was $2.0 million of tenant improvements related to bank owned OREO property. As part of the ABOK conversion, $1.9 million of property previously held for bank operations was moved to OREO. Additionally, a commercial property was taken into OREO valued at $9.6 million. The remainder of the change in OREO and repossessed assets resulted from normal bank operations. 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.

Previous wording

The Company's write-downs of OREO totaled $1.3 million for the six months ended June 30, 2026 compared to $20,000 for the six months ended June 30, 2025.

Current wording

The Company's write-downs of OREO totaled $1.3 million for the nine months ended September 30, 2026 compared to $109,000 for the nine months ended September 30, 2025.

Previous wording

Identifiable intangible assets and goodwill totaled $202.8 million and $204.1 million at June 30, 2026 and December 31, 2025, respectively.

Current wording

Identifiable intangible assets and goodwill totaled $201.8 million and $204.1 million at September 30, 2026 and December 31, 2025, respectively.

Previous wording

Other assets included the cash surrender value of key-man life insurance policies totaling $89.9 million at June 30, 2026 and $94.2 million at December 31, 2025.

Current wording

Other assets included the cash surrender value of key-man life insurance policies totaling $91.2 million at September 30, 2026 and $94.2 million at December 31, 2025.

Previous wording

Derivative financial instruments consisting of oil and gas swaps and option contracts are included in other assets and totaled $18.7 million at June 30, 2026 and $21.2 million at December 31, 2025. 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 $7.1 million at June 30, 2026 and a margin liability included in other liabilities in the amount of $7.4 million at December 31, 2025. 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 $39.5 million at September 30, 2026 and $21.2 million at December 31, 2025. 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 $34.2 million at September 30, 2026 and a margin liability included in other liabilities in the amount of $7.4 million at December 31, 2025. 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 $10.1 million at June 30, 2026 and $9.3 million at December 31, 2025. 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 $9.7 million at September 30, 2026 and $9.3 million at December 31, 2025. The Company reviews its portfolio of equity securities for impairment at least quarterly.

Previous wording

The Company's tax credits all amortize off over the life of the investment. During 2026, the Company’s low-income housing tax credit ("LIHTC") investments increased $23.6 million totaling $118.5 million at June 30, 2026, New Markets Tax Credits ("NMTC") investments decreased $826,000 totaling $8.1 million at June 30, 2026 and the Historic Tax Credit Investments decreased $2.2 million totaling $6.4 million at June 30, 2026, all of which are included in other assets on the Company’s consolidated balance sheet. Unfunded commitments related to these investments totaled $83.8 million at June 30, 2026, all of which are included in other liabilities on the Company’s consolidated balance sheet.

Current wording

The Company's tax credits all amortize off over the life of the investment. During 2026, the Company’s low-income housing tax credit ("LIHTC") investments increased $20.8 million totaling $115.8 million at September 30, 2026, New Markets Tax Credits ("NMTC") investments increased $1.9 million totaling $10.8 million at September 30, 2026 and the Historic Tax Credit Investments decreased $415,000 totaling $8.2 million at September 30, 2026, all of which are included in other assets on the Company’s consolidated balance sheet. Unfunded commitments related to these investments totaled $78.1 million at September 30, 2026, 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 29.2% at June 30, 2026, compared to 30.3% at December 31, 2025.

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 . 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 28.0% at September 30, 2026, compared to 30.3% at December 31, 2025.

Previous wording

At June 30, 2026, deposits totaled $12.8 billion, an increase of $155.9 million from December 31, 2025. 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 was 95.2% at June 30, 2026 and 94.8% December 31, 2025. Noninterest-bearing deposits to total deposits were 32.5% at June 30, 2026 compared to 30.8% at December 31, 2025.

Current wording

At September 30, 2026, deposits totaled $12.7 billion, an increase of $29.3 million from December 31, 2025. 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 was 95.1% at September 30, 2026 and 94.8% December 31, 2025. Noninterest-bearing deposits to total deposits were 31.9% at September 30, 2026 compared to 30.8% at December 31, 2025.

Previous wording

Off-balance-sheet sweep accounts totaled $5.0 billion at June 30, 2026 compared to $4.9 billion at December 31, 2025. 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 $4.7 billion at September 30, 2026 compared to $4.9 billion at December 31, 2025. 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, 2026, BancFirst had $1.1 billion available on its line of credit from the FHLB of Topeka, Kansas. At June 30, 2026, BancFirst had $6.0 million in advances outstanding under this line of credit. Pegasus had a Federal Reserve discount window capacity of $63.7 million. At June 30, 2026, 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 $28.9 million and a $92.1 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, 2026 under any of these lines of credit.

Current wording

The Company has several lines of credit available. At September 30, 2026, BancFirst had $1.1 billion available on its line of credit from the FHLB of Topeka, Kansas. At September 30, 2026, BancFirst had $6.0 million in advances outstanding under this line of credit. Pegasus had a Federal Reserve discount window capacity of $51.0 million. At September 30, 2026, 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 $27.7 million and a $92.8 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, 2026 under any of these lines of credit.

Previous wording

Stockholders’ equity totaled $2.0 billion at June 30, 2026, an increase of $103.0 million from December 31, 2025. In addition to net income of $129.7 million, other changes in stockholders’ equity during the six months ended June 30, 2026 included $1.1 million in common stock issuances related to stock-based compensation plans, $3.4 million in common stock issuances related to the acquisition of ABOK, $1.6 million related to stock-based compensation arrangements and a $42,000 increase in accumulated other comprehensive income that were partially offset by $32.9 million in dividends. The Company’s leverage ratio and total risk-based capital ratios at June 30, 2026 were well in excess of the regulatory requirements.

Current wording

Stockholders’ equity totaled $2.0 billion at September 30, 2026, an increase of $142.9 million from December 31, 2025. In addition to net income of $196.9 million, other changes in stockholders’ equity during the nine months ended September 30, 2026 included $2.2 million in common stock issuances related to stock-based compensation plans, $3.5 million in common stock issuances related to the acquisition of ABOK and $2.7 million related to stock-based compensation arrangements that were partially offset by a $12.0 million decrease in accumulated other comprehensive income and $50.4 million in dividends. The Company’s leverage ratio and total risk-based capital ratios at September 30, 2026 were well in excess of the regulatory requirements.