These terms and conditions govern your use of the website alphaminr.com and its related
services.
These Terms and Conditions (“Terms”) are a binding contract between you and Alphaminr,
(“Alphaminr”, “we”, “us” and “service”). You must agree to and accept the Terms. These Terms
include the provisions in this document as well as those in the Privacy Policy. These terms may
be modified at any time.
Subscription
Your subscription will be on a month to month basis and automatically renew every month. You may
terminate your subscription at any time through your account.
Fees
We will provide you with advance notice of any change in fees.
Usage
You represent that you are of legal age to form a binding contract. You are responsible for any
activity associated with your account. The account can be logged in at only one computer at a
time.
The Services are intended for your own individual use. You shall only use the Services in a
manner that complies with all laws. You may not use any automated software, spider or system to
scrape data from Alphaminr.
Limitation of Liability
Alphaminr is not a financial advisor and does not provide financial advice of any kind. The
service is provided “As is”. The materials and information accessible through the Service are
solely for informational purposes. While we strive to provide good information and data, we make
no guarantee or warranty as to its accuracy.
TO THE EXTENT PERMITTED BY APPLICABLE LAW, UNDER NO CIRCUMSTANCES SHALL ALPHAMINR BE LIABLE TO
YOU FOR DAMAGES OF ANY KIND, INCLUDING DAMAGES FOR INVESTMENT LOSSES, LOSS OF DATA, OR ACCURACY
OF DATA, OR FOR ANY AMOUNT, IN THE AGGREGATE, IN EXCESS OF THE GREATER OF (1) FIFTY DOLLARS OR
(2) THE AMOUNTS PAID BY YOU TO ALPHAMINR IN THE SIX MONTH PERIOD PRECEDING THIS APPLICABLE
CLAIM. SOME STATES DO NOT ALLOW THE EXCLUSION OR LIMITATION OF INCIDENTAL OR CONSEQUENTIAL OR
CERTAIN OTHER DAMAGES, SO THE ABOVE LIMITATION AND EXCLUSIONS MAY NOT APPLY TO YOU.
If any provision of these Terms is found to be invalid under any applicable law, such provision
shall not affect the validity or enforceability of the remaining provisions herein.
Privacy Policy
This privacy policy describes how we (“Alphaminr”) collect, use, share and protect your personal
information when we provide our service (“Service”). This Privacy Policy explains how
information is collected about you either directly or indirectly. By using our service, you
acknowledge the terms of this Privacy Notice. If you do not agree to the terms of this Privacy
Policy, please do not use our Service. You should contact us if you have questions about it. We
may modify this Privacy Policy periodically.
Personal Information
When you register for our Service, we collect information from you such as your name, email
address and credit card information.
Usage
Like many other websites we use “cookies”, which are small text files that are stored on your
computer or other device that record your preferences and actions, including how you use the
website. You can set your browser or device to refuse all cookies or to alert you when a cookie
is being sent. If you delete your cookies, if you opt-out from cookies, some Services may not
function properly. We collect information when you use our Service. This includes which pages
you visit.
Sharing of Personal Information
We use Google Analytics and we use Stripe for payment processing. We will not share the
information we collect with third parties for promotional purposes.
We may share personal information with law enforcement as required or permitted by law.
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended
June 30,
2025
OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number
0-14384
BancFirst Corporation
(Exact name of registrant as specified in charter)
Oklahoma
73-1221379
(State or other Jurisdiction of
(I.R.S. Employer
incorporation or organization)
Identification No.)
100 N. Broadway Ave.
,
Oklahoma City
,
Oklahoma
73102-8405
(Address of principal executive offices)
(Zip Code)
(
405
)
270-1086
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading
Symbol(s)
Name of each exchange on which registered
Common Stock, $1.00 Par Value Per Share
BANF
NASDAQ
Global Select Market System
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes
☒ No ☐.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (sec. 232-405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes
☒ No ☐.
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☒
Accelerated filer
☐
Non-accelerated filer
☐
Smaller reporting company
☐
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act). Yes ☐ No
☒
As of July 31, 2025, there were
33,309,310
shares of the registrant’s Common Stock outstanding.
Common stock, $
1.00
par,
40,000,000
shares authorized; shares issued and
outstanding:
33,272,131
and
33,216,519
, respectively
33,272
33,217
Capital surplus
190,698
187,062
Retained earnings
1,521,631
1,433,768
Accumulated other comprehensive loss, net of tax benefit of $
5,442
and $
10,191
, respectively
(
17,563
)
(
32,860
)
Total stockholders' equity
1,728,038
1,621,187
Total liabilities and stockholders' equity
$
14,045,780
$
13,554,314
The accompanying Notes are an integral part of these consolidated financial statements.
2
BANCFIRST CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
(Dollars in thousands, except per share data)
Three Months Ended
Six Months Ended
June 30,
June 30,
2025
2024
2025
2024
INTEREST INCOME
Loans, including fees
$
139,337
$
137,710
$
276,321
$
269,836
Securities:
Taxable
6,887
8,932
13,893
18,113
Tax-exempt
17
18
35
38
Federal funds sold
—
5
1
24
Interest-bearing deposits with banks
42,186
31,800
80,653
62,097
Total interest income
188,427
178,465
370,903
350,108
INTEREST EXPENSE
Deposits
66,089
67,479
131,579
131,892
Short-term borrowings
51
59
58
155
Subordinated debt
1,031
1,031
2,061
2,061
Total interest expense
67,171
68,569
133,698
134,108
Net interest income
121,256
109,896
237,205
216,000
Provision for credit losses on loans
1,239
3,358
2,700
7,373
Provision for off-balance sheet credit exposures
148
—
273
—
Total provision for credit losses
1,387
3,358
2,973
7,373
Net interest income after provision for credit losses
119,869
106,538
234,232
208,627
NONINTEREST INCOME
Trust revenue
5,795
5,490
11,334
10,578
Service charges on deposits
17,741
17,280
34,545
33,708
Securities transactions
(
740
)
317
(
1,073
)
50
Sales of loans
830
733
1,466
1,224
Insurance commissions
7,920
6,668
18,330
16,123
Cash management
10,573
9,149
20,624
17,800
Gain/(loss) on sale of other assets
840
55
998
(
4
)
Other
5,089
4,252
10,718
9,365
Total noninterest income
48,048
43,944
96,942
88,844
NONINTEREST EXPENSE
Salaries and employee benefits
55,147
51,928
109,740
103,456
Occupancy, net
6,037
5,233
11,790
10,439
Depreciation
4,691
4,504
9,499
9,060
Amortization of intangible assets
862
887
1,748
1,773
Data processing services
2,985
2,696
5,877
5,312
Net expense from other real estate owned
2,941
1,656
5,599
3,858
Marketing and business promotion
2,325
2,246
4,786
4,502
Deposit insurance
1,675
1,614
3,400
3,052
Other
11,536
14,552
27,939
26,643
Total noninterest expense
88,199
85,316
180,378
168,095
Income before taxes
79,718
65,166
150,796
129,376
Income tax expense
17,371
14,525
32,337
28,401
Net income
$
62,347
$
50,641
$
118,459
$
100,975
NET INCOME PER COMMON SHARE
Basic
$
1.87
$
1.53
$
3.56
$
3.06
Diluted
$
1.85
$
1.51
$
3.51
$
3.01
OTHER COMPREHENSIVE GAIN
Unrealized income on debt securities, net of tax expense of $
1,911
, $
1,263
, $
4,749
and $
535
, respectively
6,159
4,105
15,297
1,801
Other comprehensive income, net of tax expense of $
1,911
, $
1,263
, $
4,749
and $
535
, respectively
6,159
4,105
15,297
1,801
Comprehensive income
$
68,506
$
54,746
$
133,756
$
102,776
The accompanying Notes are an integral part of these consolidated financial statements.
3
BANCFIRST CORPORATION
CONSOLIDATED STATEM
ENTS OF STOCKHOLDERS’ EQUITY
(Unaudited)
(Dollars in thousands)
Three Months Ended
Six Months Ended
June 30,
June 30,
2025
2024
2025
2024
COMMON STOCK
Issued at beginning of period
$
33,242
$
32,967
$
33,217
$
32,933
Shares issued for stock-based compensation plans
30
55
55
89
Issued at end of period
$
33,272
$
33,022
$
33,272
$
33,022
CAPITAL SURPLUS
Balance at beginning of period
$
188,718
$
176,227
$
187,062
$
174,695
Common stock issued for stock-based compensation plans
1,061
1,659
1,927
2,476
Stock-based compensation arrangements
919
920
1,709
1,635
Balance at end of period
$
190,698
$
178,806
$
190,698
$
178,806
RETAINED EARNINGS
Balance at beginning of period
$
1,474,589
$
1,312,464
$
1,433,768
$
1,276,305
Net income
62,347
50,641
118,459
100,975
Dividends on common stock ($
0.46
, $
0.43
, $
0.92
and $
0.86
per share, respectively)
(
15,305
)
(
14,200
)
(
30,596
)
(
28,375
)
Balance at end of period
$
1,521,631
$
1,348,905
$
1,521,631
$
1,348,905
ACCUMULATED OTHER COMPREHENSIVE LOSS
Unrealized (losses)/gains on securities:
Balance at beginning of period
$
(
23,722
)
$
(
52,346
)
$
(
32,860
)
$
(
50,042
)
Net change
6,159
4,105
15,297
1,801
Balance at end of period
$
(
17,563
)
$
(
48,241
)
$
(
17,563
)
$
(
48,241
)
Total stockholders’ equity
$
1,728,038
$
1,512,492
$
1,728,038
$
1,512,492
The accompanying Notes are an integral part of these consolidated financial statements.
4
BANCFIRST CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
(Dollars in thousands)
Six Months Ended
June 30,
2025
2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net income
$
118,459
$
100,975
Adjustments to reconcile to net cash provided by operating activities:
Provision for credit losses
2,973
7,373
Depreciation and amortization
11,247
10,833
Net amortization of securities premiums and discounts
(
232
)
(
627
)
Realized securities losses/(gains)
1,073
(
50
)
Gain on sales of loans
(
1,466
)
(
1,224
)
Cash receipts from the sale of loans originated for sale
86,205
110,096
Cash disbursements for loans originated for sale
(
86,675
)
(
72,791
)
Deferred income tax benefit
(
2,194
)
(
1,764
)
Gain on sale of other assets
(
919
)
(
1,319
)
Increase/(decrease) in interest receivable
914
(
3,074
)
(Decrease)/increase in interest payable
(
334
)
5,314
Amortization of stock-based compensation arrangements
1,709
1,635
Excess tax benefit from stock-based compensation arrangements
(
1,043
)
(
750
)
Other, net
25,357
11,848
Net cash provided by operating activities
155,074
166,475
INVESTING ACTIVITIES
Net decrease in federal funds sold
715
214
Purchases of available for sale debt securities
(
233
)
(
270
)
Proceeds from maturities, calls and paydowns of held for investment debt securities
90
352
Proceeds from maturities, calls and paydowns of available for sale debt securities
127,572
116,611
Purchase of equity securities
(
256
)
(
404
)
Proceeds from paydowns and sales of equity securities
351
206
Net change in loans
(
114,469
)
(
445,920
)
Net payments on derivative asset contracts
(
3,163
)
(
22,293
)
Purchases of premises, equipment and computer software
(
25,054
)
(
16,273
)
Purchase of tax credits
(
16,289
)
(
2,469
)
Other, net
4,322
8,978
Net cash used in investing activities
(
26,414
)
(
361,268
)
FINANCING ACTIVITIES
Net change in deposits
337,646
315,480
Net change in short-term borrowings
5,860
913
Issuance of common stock in connection with stock-based compensation plans, net
1,982
2,565
Cash dividends paid
(
30,570
)
(
28,336
)
Net cash provided by financing activities
314,918
290,622
Net increase in cash, due from banks and interest-bearing deposits
443,578
95,829
Cash, due from banks and interest-bearing deposits at the beginning of the period
3,553,772
2,397,463
Cash, due from banks and interest-bearing deposits at the end of the period
$
3,997,350
$
2,493,292
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for interest
$
134,032
$
128,794
Cash paid during the period for income taxes
$
16,331
$
22,349
Noncash investing and financing activities:
Unpaid common stock dividends declared
$
15,305
$
14,200
The accompanying Notes are an integral part of these consolidated financial statements.
5
BANCFIRST CORPORATION
NOTES TO CONSOLIDATE
D FINANCIAL STATEMENTS
(Unaudited)
(1) DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting and reporting policies of BancFirst Corporation and its subsidiaries (the “Company”) conform to accounting principles generally accepted in the United States of America (U.S. GAAP) and general practice within the banking industry. A summary of significant accounting policies can be found in Note (1) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
Basis of Presentation
The accompanying unaudited interim consolidated financial statements include the accounts of BancFirst Corporation, Council Oak Partners, LLC, BFC-PNC, LLC, BancFirst Insurance Services, Inc., Pegasus Bank ("Pegasus"), Worthington Bank ("Worthington") and BancFirst and its subsidiaries ("BancFirst"). The principal operating subsidiaries of BancFirst are BFTower, LLC and BancFirst Agency, Inc. All significant intercompany accounts and transactions have been eliminated. Assets held in a fiduciary or agency capacity are not assets of the Company and, accordingly, are not included in the unaudited interim consolidated financial statements.
The accompanying unaudited interim consolidated financial statements and notes are presented in accordance with U.S. GAAP for interim financial information and the instructions for Form 10-Q adopted by the Securities and Exchange Commission (“SEC”). The information contained in the consolidated financial statements and footnotes included in BancFirst Corporation’s Annual Report on Form 10-K for the year ended December 31, 2024, should be referred to in connection with these unaudited interim consolidated financial statements. Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period.
The unaudited interim consolidated financial statements contained herein reflect all adjustments, which are, in the opinion of management, necessary to provide a fair statement of the financial position and results of operations of the Company for the interim periods presented. All such adjustments are of a normal and recurring nature.
Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with accounting principles generally accepted in the United States inherently involves the use of estimates and assumptions that affect the amounts reported in the financial statements and the related disclosures. These estimates relate principally to the determination of the allowance for credit losses, income taxes, the fair value of financial instruments and the valuation of assets and liabilities acquired in a business combination, including identifiable intangible assets. Such estimates and assumptions may change over time and actual amounts realized may differ from those reported.
Recent Accounting Pronouncements
Standards Not Yet Adopted:
In November 2024, the Financial Accounting Standards Board (“FASB“) issued Accounting Standards Update (“ASU”) 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures” requiring disclosure of certain costs and expenses in the notes to financial statements. This ASU is effective for annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. The amendments may be applied prospectively or retrospectively to all periods presented. The Company does not expect adoption of the standard to have a material impact on its consolidated financial statements.
In December 2023, FASB issued ASU No. 2023-09, “Income Taxes - Improvements to Income Tax Disclosures” requiring enhancements and further transparency to certain income tax disclosures, most notably the tax rate reconciliation and income taxes paid. This ASU is effective for annual periods beginning after December 15, 2024 on a prospective basis and retrospective application is permitted. The Company does not expect adoption of the standard to have a material impact on its consolidated financial statements.
(2) RECENT DEVELOPMENTS, INCLUDING MERGERS AND ACQUISITIONS
On May 20, 2025, the Company entered into an agreement to acquire American Bank of Oklahoma ("ABOK"), a privately held community bank headquartered in Collinsville, Oklahoma. ABOK has approximately $
385
million in total assets, $
280
million in loans, and $
320
million
in deposits. The transaction is expected to close in the third quarter of 2025, subject to regulatory approvals and
6
customary
closing conditions. ABOK will operate under its present name until it is merged into BancFirst, which is expected to be in the fourth quarter of 2025.
(3) SECURITIES
The following table summarizes the amortized cost and estimated fair values of debt securities held for investment:
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair
Value
June 30, 2025
(Dollars in thousands)
Mortgage backed securities (1)
$
1
$
—
$
—
$
1
States and political subdivisions
60
—
—
60
Other securities
500
—
—
500
Total
$
561
$
—
$
—
$
561
December 31, 2024
Mortgage backed securities (1)
$
2
$
—
$
—
$
2
States and political subdivisions
335
—
—
335
Other securities
500
—
—
500
Total
$
837
$
—
$
—
$
837
The following table summarizes the amortized cost and estimated fair values of debt securities available for sale:
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair
Value
June 30, 2025
(Dollars in thousands)
U.S. treasuries
$
1,091,549
$
699
$
(
21,223
)
$
1,071,025
U.S. federal agencies
7,432
74
(
5
)
7,501
Mortgage backed securities (1)
14,030
9
(
1,469
)
12,570
States and political subdivisions
5,874
2
(
127
)
5,749
Other securities
8,163
—
(
965
)
7,198
Total
$
1,127,048
$
784
$
(
23,789
)
$
1,104,043
December 31, 2024
U.S. treasuries
$
1,216,258
$
—
$
(
40,249
)
$
1,176,009
U.S. federal agencies
8,170
68
(
6
)
8,232
Mortgage backed securities (1)
14,807
9
(
1,772
)
13,044
States and political subdivisions
6,570
6
(
140
)
6,436
Other securities
8,163
—
(
967
)
7,196
Total
$
1,253,968
$
83
$
(
43,134
)
$
1,210,917
(1) Primarily consists of FHLMC, FNMA, GNMA and mortgage backed securities through U.S. agencies.
7
The maturities of debt securities held for investment and available for sale are summarized in the following table using contractual maturities. Actual maturities may differ from contractual maturities due to obligations that are called or prepaid. For purposes of the maturity table, mortgage-backed securities, which are not due at a single maturity date, have been presented at their contractual maturity.
June 30, 2025
December 31, 2024
Amortized
Cost
Estimated
Fair
Value
Amortized
Cost
Estimated
Fair
Value
(Dollars in thousands)
Held for Investment
Contractual maturity of debt securities:
Within one year
$
560
$
560
$
776
$
776
After one year but within five years
1
1
61
61
After five years but within ten years
—
—
—
—
After ten years
—
—
—
—
Total
$
561
$
561
$
837
$
837
Available for Sale
Contractual maturity of debt securities:
Within one year
$
340,445
$
336,476
$
335,108
$
330,076
After one year but within five years
757,598
741,045
888,721
853,508
After five years but within ten years
13,414
12,423
13,369
12,354
After ten years
15,591
14,099
16,770
14,979
Total debt securities
$
1,127,048
$
1,104,043
$
1,253,968
$
1,210,917
The following table is a summary of the Company’s book value of securities that were pledged as collateral for public funds on deposit, repurchase agreements and for other purposes as required or permitted by law:
June 30, 2025
December 31, 2024
(Dollars
in thousands)
Book value of pledged securities
$
858,120
$
918,523
8
There were
no
sales of debt securities and therefore
no
proceeds from sales or realized securities gains or losses on available for sale debt securities for the six months ended June 30, 2025 or June 30, 2024.
Realized gains or losses on debt and equity securities are reported as securities transactions within the noninterest income section of the consolidated statement of comprehensive income.
The following table summarizes debt securities with unrealized losses, segregated by the duration of the unrealized loss, at June 30, 2025 and December 31, 2024 respectively:
Less than 12 Months
More than 12 Months
Total
Number of investments
Estimated
Fair Value
Unrealized
Losses
Estimated
Fair Value
Unrealized
Losses
Estimated
Fair Value
Unrealized
Losses
(Dollars in thousands)
June 30, 2025
Available for Sale
U.S. treasuries
42
$
—
$
—
$
979,845
$
21,223
$
979,845
$
21,223
U.S. federal agencies
5
637
3
440
2
1,077
5
Mortgage backed securities
55
1,163
2
11,068
1,467
12,231
1,469
States and political subdivisions
4
801
1
758
126
1,559
127
Other securities
3
—
—
7,198
965
7,198
965
Total
109
$
2,601
$
6
$
999,309
$
23,783
$
1,001,910
$
23,789
December 31, 2024
Available for Sale
U.S. treasuries
51
$
89,867
$
1,030
$
1,086,142
$
39,219
$
1,176,009
$
40,249
U.S. federal agencies
5
681
4
500
2
1,181
6
Mortgage backed securities
63
1,214
15
11,498
1,757
12,712
1,772
States and political subdivisions
4
802
2
752
138
1,554
140
Other securities
3
—
—
7,196
967
7,196
967
Total
126
$
92,564
$
1,051
$
1,106,088
$
42,083
$
1,198,652
$
43,134
The Company has the ability and intent to hold the debt securities classified as held for investment until they mature, at which time the Company will receive full value for the debt securities. Furthermore, as of June 30, 2025 and December 31, 2024, the Company also had the ability and intent to hold the debt securities classified as available for sale for a period of time sufficient for a recovery of cost. The unrealized losses are due to increases in market interest rates over the yields available at the time the underlying debt securities were purchased. The fair value of those debt securities having unrealized losses is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. The Company has no intent or requirement to sell before the recovery of the unrealized loss; therefore, no impairment loss was realized in the Company’s consolidated statement of comprehensive income.
9
(4) LOANS HELD FOR INVESTMENT AND ALLOWANCE FOR CREDIT LOSSES ON LOANS
Loans held for investment are summarized by portfolio segment as follows:
June 30, 2025
December 31, 2024
(Dollars in thousands)
Real estate:
Commercial real estate owner occupied
937,426
931,709
Commercial real estate non-owner occupied
1,674,229
1,578,483
Construction and development < 60 months
684,291
756,662
Construction residential real estate < 60 months
235,032
250,373
Residential real estate first lien
1,462,758
1,431,265
Residential real estate all other
291,362
275,461
Agriculture
447,984
449,190
Commercial non-real estate
1,427,576
1,363,462
Consumer non-real estate
481,725
478,647
Oil and gas
472,105
509,858
Total (1)
$
8,114,488
$
8,025,110
(1) Excludes accrued interest receivable of $
40.9
million at June 30, 2025 and $
40.9
million at December 31, 2024, that is recorded in accrued interest receivable and other assets.
The Company's loans are currently
83
% held by BancFirst and
17
% held by Pegasus and Worthington. In addition, approximately
71
% of the Company's loans are secured by real estate.
Credit risk on loans is managed through limits on amounts loaned to individual and related borrowers, underwriting standards and loan monitoring procedures. The amounts and types of collateral obtained, if any, to secure loans are based upon the Company’s underwriting standards and management’s credit evaluation. Collateral varies, but may include real estate, equipment, accounts receivable, inventory, livestock and/or securities. The Company’s interest in collateral is secured through filing mortgages and liens, or by possession of the collateral.
The Company's portfolio segment descriptions and the weighted average remaining life of portfolio segments are disclosed in Note (5) to the Company's Annual Report on Form 10-K for the year ended December 31, 2024.
Other Real Estate Owned and Repossessed Assets and Loan Modifications
The following is a summary of other real estate owned ("OREO") and repossessed assets:
June 30, 2025
December 31, 2024
(Dollars in thousands)
Other real estate owned and repossessed assets
$
53,022
$
33,665
During the six months ended June 30, 2025 the Company foreclosed on a construction and development real estate loan and recorded $
15.6
million in OREO, which was the primary reason for the increase in OREO.
In addition, as of both June 30, 2025 and December 31, 2024, OREO included a commercial real estate property recorded at approximately $
30.7
million and $
28.1
million, respectively.
The increase for this commercial real estate property was due to tenant improvements during the six months ended June 30, 2025. Rental income for this property is included in other noninterest income on the consolidated statements of comprehensive income. Operating expense for this property is included in net expense from other real estate owned in noninterest expense on the consolidated statements of comprehensive income.
This property had the following rental income and operating expenses for the periods presented.
Three Months Ended
June 30,
Six Months Ended June 30,
2025
2024
2025
2024
(Dollars in thousands)
Rental income
$
3,202
$
3,085
$
6,323
$
6,026
Operating expense
2,673
2,673
5,297
4,923
10
During the six months ended June 30, 2025
, the Company sold property held in other real estate owned for a total loss of $
79,000
,
compared to a total gain of $
1.3
million in the
six months ended June 30, 2024.
The Company charges interest on principal balances outstanding on modified loans during deferral periods. The current and future financial effects of the recorded balance of loans considered to be modified during the period were not material. The recorded balance of loans modified during the six months ended June 30, 2025 was approximately
$
3.6
million compared to $
14.8
million during the year ended December 31, 2024.
Nonaccrual loans
The Company did
no
t recognize any interest income on nonaccrual loans for either the six months ended June 30, 2025 or 2024. In addition, all loans identified as nonaccrual loans have related allowances for credit losses at June 30, 2025 and December 31, 2024, respectively. Had nonaccrual loans performed in accordance with their original contractual terms, the Company would have recognized additional interest income of approximately
$
2.3
million
for the six months ended June 30, 2025
and approximately $
1.8
million for the
six months ended June 30, 2024.
Nonaccrual loans guaranteed by government agencies totaled approximately $
9.5
million at
June 30, 2025
and approximately $
9.0
million at
December 31, 2024.
The following table is a summary of amounts included in nonaccrual loans, segregated by portfolio segment.
June 30, 2025
December 31, 2024
(Dollars in thousands)
Real estate:
Commercial real estate owner occupied
$
7,347
$
7,957
Commercial real estate non-owner occupied
21,857
8,913
Construction and development < 60 months
1,318
20,445
Construction residential real estate < 60 months
1,881
1,481
Residential real estate first lien
5,138
5,193
Residential real estate all other
828
653
Agriculture
1,754
2,047
Commercial non-real estate
6,914
8,552
Consumer non-real estate
1,151
1,028
Oil and gas
1,690
1,715
Total
$
49,878
$
57,984
11
Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. The following tables present an age analysis of the Company's loans held for investment:
Age Analysis of Past Due Loans
30-59
Days
Past Due
60-89
Days
Past Due
90 Days
and
Greater
Total
Past Due
Loans
Current
Loans
Total Loans
Accruing
Loans 90
Days or
More
Past Due
(Dollars in thousands)
As of June 30, 2025
Real estate:
Commercial real estate owner occupied
$
525
$
33
$
6,750
$
7,308
$
930,118
$
937,426
$
514
Commercial real estate non-owner occupied
1,691
103
17,844
19,638
1,654,591
1,674,229
—
Construction and development < 60 months
753
2,361
1,185
4,299
679,992
684,291
16
Construction residential real estate < 60 months
—
—
1,068
1,068
233,964
235,032
—
Residential real estate first lien
8,090
1,850
4,884
14,824
1,447,934
1,462,758
2,470
Residential real estate all other
865
254
681
1,800
289,562
291,362
595
Agriculture
1,318
232
1,632
3,182
444,802
447,984
620
Commercial non-real estate
4,496
810
6,821
12,127
1,415,449
1,427,576
2,819
Consumer non-real estate
2,915
1,203
1,313
5,431
476,294
481,725
481
Oil and gas
827
491
1,686
3,004
469,101
472,105
—
Total
$
21,480
$
7,337
$
43,864
$
72,681
$
8,041,807
$
8,114,488
$
7,515
As of December 31, 2024
Real estate:
Commercial real estate owner occupied
$
2,810
$
273
$
7,963
$
11,046
$
920,663
$
931,709
$
569
Commercial real estate non-owner occupied
603
16,871
610
18,084
1,560,399
1,578,483
41
Construction and development < 60 months
317
351
20,327
20,995
735,667
756,662
116
Construction residential real estate < 60 months
292
622
616
1,530
248,843
250,373
—
Residential real estate first lien
9,128
2,118
3,332
14,578
1,416,687
1,431,265
797
Residential real estate all other
1,498
559
828
2,885
272,576
275,461
370
Agriculture
1,569
1,357
5,691
8,617
440,573
449,190
4,754
Commercial non-real estate
4,325
1,019
5,983
11,327
1,352,135
1,363,462
356
Consumer non-real estate
3,748
907
1,173
5,828
472,819
478,647
504
Oil and gas
1,111
458
232
1,801
508,057
509,858
232
Total
$
25,401
$
24,535
$
46,755
$
96,691
$
7,928,419
$
8,025,110
$
7,739
Credit Quality Indicators
The Company considers credit quality indicators to monitor the credit risk in the loan portfolio including volume and severity of loan delinquencies, nonaccrual loans, internal grading of loans, historical credit loss experience and economic conditions. These indicators are reviewed and updated regularly throughout the year. An internal risk grading system is used to indicate the credit risk of loans. The loan grades used by the Company are for internal risk identification purposes and do not directly correlate to regulatory classification categories or any financial reporting definitions. The general characteristics of the risk grades and the table summarizing the Company’s gross loans held for investment by year of origination and internally assigned credit grades as of December 31, 2024, are disclosed in Note (5) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
The Company’s revolving loans that are converted to term loans are not material and therefore have not been presented.
The following table summarizes the Company’s gross loans held for investment by year of origination and internally assigned credit grades:
12
Term Loans Amortized Cost Basis by Origination Year
Revolving Loans
(Dollars in thousands)
2025
2024
2023
2022
2021
Prior
Amortized Cost Basis
Total
As of June 30, 2025
Commercial real estate owner occupied
Grade 1
$
46,987
$
72,680
$
103,525
$
126,529
$
89,591
$
184,795
$
12,575
$
636,682
Grade 2
37,790
35,379
32,027
47,992
46,707
57,105
7,354
264,354
Grade 3
386
13,853
10,990
3,054
2,244
1,865
138
32,530
Grade 4
—
243
599
153
558
2,307
—
3,860
Total commercial real estate owner occupied
85,163
122,155
147,141
177,728
139,100
246,072
20,067
937,426
Commercial real estate non-owner occupied
Grade 1
$
94,690
$
115,357
$
256,328
$
284,008
$
155,649
$
168,459
$
29,140
$
1,103,631
Grade 2
53,516
82,637
114,315
133,489
64,902
82,708
13,927
545,494
Grade 3
4,179
—
—
943
—
—
—
5,122
Grade 4
—
19,467
121
64
273
57
—
19,982
Total commercial real estate non-owner occupied
152,385
217,461
370,764
418,504
220,824
251,224
43,067
1,674,229
Construction and development < 60 months
Grade 1
$
68,650
$
102,545
$
101,111
$
108,571
$
7,853
$
13,230
$
31,451
$
433,411
Grade 2
97,774
57,984
34,458
30,861
608
15,252
8,908
245,845
Grade 3
2,588
483
123
36
346
125
—
3,701
Grade 4
61
—
18
816
303
136
—
1,334
Total construction and development < 60 months
169,073
161,012
135,710
140,284
9,110
28,743
40,359
684,291
Construction residential real estate < 60 months
Grade 1
$
69,559
$
50,902
$
7,351
$
4,780
$
88
$
1,749
$
3,847
$
138,276
Grade 2
51,610
33,149
1,163
752
—
—
7,112
93,786
Grade 3
769
320
—
—
—
—
—
1,089
Grade 4
813
745
117
206
—
—
—
1,881
Total construction residential real estate < 60 months
122,751
85,116
8,631
5,738
88
1,749
10,959
235,032
Residential real estate first lien
Grade 1
$
126,178
$
216,760
$
182,841
$
183,960
$
134,645
$
237,448
$
4,914
$
1,086,746
Grade 2
38,500
76,142
55,034
50,662
39,334
64,838
17,014
341,524
Grade 3
3,873
5,302
3,922
2,792
2,726
5,738
—
24,353
Grade 4
81
3,890
1,163
853
1,817
2,331
—
10,135
Total residential real estate first lien
168,632
302,094
242,960
238,267
178,522
310,355
21,928
1,462,758
Residential real estate all other
Grade 1
$
18,436
$
32,547
$
22,572
$
17,121
$
4,829
$
14,150
$
53,812
$
163,467
Grade 2
3,461
6,586
5,321
3,761
1,174
4,928
95,954
121,185
Grade 3
453
615
480
124
221
383
2,025
4,301
Grade 4
419
68
144
117
16
180
1,465
2,409
Total residential real estate all other
22,769
39,816
28,517
21,123
6,240
19,641
153,256
291,362
Agriculture
Grade 1
$
26,222
$
31,946
$
34,820
$
33,569
$
24,882
$
52,665
$
51,487
$
255,591
Grade 2
28,619
31,678
21,831
16,658
11,838
23,148
37,213
170,985
Grade 3
964
1,158
1,905
2,550
1,287
4,260
6,470
18,594
Grade 4
31
793
413
758
325
369
125
2,814
Total Agriculture
55,836
65,575
58,969
53,535
38,332
80,442
95,295
447,984
Commercial non-real estate
Grade 1
$
91,468
$
119,790
$
83,645
$
118,094
$
87,175
$
61,279
$
350,751
$
912,202
Grade 2
68,090
69,535
65,733
26,150
10,115
7,364
222,337
469,324
Grade 3
774
1,283
1,600
1,024
328
171
36,378
41,558
Grade 4
776
536
1,036
1,051
156
303
325
4,183
Grade 5
—
—
6
175
3
125
—
309
Total commercial non-real estate
161,108
191,144
152,020
146,494
97,777
69,242
609,791
1,427,576
Consumer non-real estate
Grade 1
$
105,760
$
138,858
$
80,119
$
37,879
$
16,468
$
6,264
$
19,337
$
404,685
Grade 2
11,788
16,246
12,780
7,176
3,127
1,331
14,638
67,086
Grade 3
591
1,408
1,983
985
613
275
13
5,868
Grade 4
1,833
723
681
494
242
112
1
4,086
Total consumer non-real estate
119,972
157,235
95,563
46,534
20,450
7,982
33,989
481,725
Oil and gas
Grade 1
$
71,743
$
14,587
$
10,006
$
3,822
$
17,204
$
2,878
$
248,947
$
369,187
Grade 2
37,339
8,812
6,555
3,650
2,675
2,818
39,275
101,124
Grade 3
471
60
68
—
159
50
520
1,328
Grade 4
—
—
—
—
58
408
—
466
Total oil and gas
109,553
23,459
16,629
7,472
20,096
6,154
288,742
472,105
Total loans held for investment
$
1,167,242
$
1,365,067
$
1,256,904
$
1,255,679
$
730,539
$
1,021,604
$
1,317,453
$
8,114,488
13
The following tables summarize the Company's gross charge-offs by year of origination for the periods indicated:
Term Loans Amortized Cost Basis by Origination Year
Revolving Loans
2025
2024
2023
2022
2021
Prior
Amortized Cost Basis
Total
(Dollars in thousands)
Three months ended June 30, 2025
Commercial real estate owner occupied
Current-period gross charge-offs
$
—
$
—
$
—
$
—
$
—
$
—
$
58
$
58
Commercial real estate non-owner occupied
Current-period gross charge-offs
—
227
—
1
—
—
—
228
Construction and development < 60 months
Current-period gross charge-offs
—
—
—
—
3,741
—
—
3,741
Construction residential real estate < 60 months
Current-period gross charge-offs
—
—
—
—
—
—
—
—
Residential real estate first lien
Current-period gross charge-offs
—
—
1
1
—
3
—
5
Residential real estate all other
Current-period gross charge-offs
—
—
—
—
—
—
7
7
Agriculture
Current-period gross charge-offs
—
1
2
—
4
—
—
7
Commercial non-real estate
Current-period gross charge-offs
5
6
127
94
14
238
42
526
Consumer non-real estate
Current-period gross charge-offs
25
90
247
80
6
41
5
494
Oil and gas
Current-period gross charge-offs
—
—
—
—
—
—
—
—
Total current-period gross charge-offs
$
30
$
324
$
377
$
176
$
3,765
$
282
$
112
$
5,066
Term Loans Amortized Cost Basis by Origination Year
Revolving Loans
2024
2023
2022
2021
2020
Prior
Amortized Cost Basis
Total
(Dollars in thousands)
Three months ended June 30, 2024
Commercial real estate owner occupied
Current-period gross charge-offs
$
—
$
—
$
—
$
—
$
—
$
—
$
—
$
—
Commercial real estate non-owner occupied
Current-period gross charge-offs
—
—
—
1
—
—
—
1
Construction and development < 60 months
Current-period gross charge-offs
—
—
—
—
—
—
—
—
Construction residential real estate < 60 months
Current-period gross charge-offs
—
—
—
—
—
—
—
—
Residential real estate first lien
Current-period gross charge-offs
2
23
—
2
4
36
—
67
Residential real estate all other
Current-period gross charge-offs
—
—
—
—
—
—
—
—
Agriculture
Current-period gross charge-offs
—
—
6
13
—
—
—
19
Commercial non-real estate
Current-period gross charge-offs
6
155
43
8
—
190
378
780
Consumer non-real estate
Current-period gross charge-offs
21
256
150
28
21
30
4
510
Oil and gas
Current-period gross charge-offs
—
—
—
—
—
—
—
—
Total current-period gross charge-offs
$
29
$
434
$
199
$
52
$
25
$
256
$
382
$
1,377
14
Term Loans Amortized Cost Basis by Origination Year
Revolving Loans
2025
2024
2023
2022
2021
Prior
Amortized Cost Basis
Total
(Dollars in thousands)
Six months ended June 30, 2025
Commercial real estate owner occupied
Current-period gross charge-offs
$
—
$
—
$
—
$
17
$
6
$
—
$
58
$
81
Commercial real estate non-owner occupied
Current-period gross charge-offs
—
227
—
1
—
—
—
228
Construction and development < 60 months
Current-period gross charge-offs
—
—
—
—
3,744
—
—
3,744
Construction residential real estate < 60 months
Current-period gross charge-offs
—
25
—
—
—
—
—
25
Residential real estate first lien
Current-period gross charge-offs
—
6
3
2
5
40
—
56
Residential real estate all other
Current-period gross charge-offs
—
—
—
—
—
—
13
13
Agriculture
Current-period gross charge-offs
—
10
2
—
5
—
17
34
Commercial non-real estate
Current-period gross charge-offs
24
16
148
127
47
310
55
727
Consumer non-real estate
Current-period gross charge-offs
25
247
471
134
12
47
5
941
Oil and gas
Current-period gross charge-offs
—
—
—
—
—
—
—
—
Total current-period gross charge-offs
$
49
$
531
$
624
$
281
$
3,819
$
397
$
148
$
5,849
Term Loans Amortized Cost Basis by Origination Year
Revolving Loans
2024
2023
2022
2021
2020
Prior
Amortized Cost Basis
Total
(Dollars in thousands)
Six months ended June 30, 2024
Commercial real estate owner occupied
Current-period gross charge-offs
$
—
$
—
$
—
$
15
$
—
$
—
$
—
$
15
Commercial real estate non-owner occupied
Current-period gross charge-offs
—
12
—
1
1
—
—
14
Construction and development < 60 months
Current-period gross charge-offs
—
—
—
—
—
—
—
—
Construction residential real estate < 60 months
Current-period gross charge-offs
—
3
—
—
—
—
—
3
Residential real estate first lien
Current-period gross charge-offs
3
23
—
3
4
57
—
90
Residential real estate all other
Current-period gross charge-offs
—
—
—
—
—
2
27
29
Agriculture
Current-period gross charge-offs
—
—
37
13
—
—
—
50
Commercial non-real estate
Current-period gross charge-offs
6
1,156
318
140
12
316
1,886
3,834
Consumer non-real estate
Current-period gross charge-offs
21
500
247
79
34
45
15
941
Oil and gas
Current-period gross charge-offs
—
9
83
—
—
—
—
92
Total current-period gross charge-offs
$
30
$
1,703
$
685
$
251
$
51
$
420
$
1,928
$
5,068
15
Allowance for Credit Losses Methodology
The Company determines its provision for credit losses and allowance for credit losses using the current expected credit loss methodology that is referred to as the current expected credit loss ("CECL") model. The allowance for current expected credit losses is measured on a collective (pool) basis when similar risk characteristics exist. The allowance for credit losses methodology is disclosed in Note (5) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
The following tables detail activity in the allowance for credit losses on loans for the periods presented. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.
Allowance for Credit Losses
Balance at
beginning of
period
Charge-
offs
Recoveries
Net
charge-offs
Provision for /(benefit from) credit losses on loans
Balance at
end of
period
(Dollars in thousands)
Three Months Ended June 30, 2025
Real estate:
Commercial real estate owner occupied
$
6,991
$
(
58
)
$
2
$
(
56
)
$
313
$
7,248
Commercial real estate non-owner occupied
33,753
(
228
)
—
(
228
)
1,692
35,217
Construction and development < 60 months
8,613
(
3,741
)
6
(
3,735
)
29
4,907
Construction residential real estate < 60 months
2,282
—
3
3
(
20
)
2,265
Residential real estate first lien
4,666
(
5
)
9
4
(
25
)
4,645
Residential real estate all other
1,790
(
7
)
—
(
7
)
38
1,821
Agriculture
5,776
(
7
)
7
—
(
645
)
5,131
Commercial non-real estate
23,877
(
526
)
250
(
276
)
446
24,047
Consumer non-real estate
4,820
(
494
)
83
(
411
)
428
4,837
Oil and gas
7,887
—
—
—
(
1,017
)
6,870
Total
$
100,455
$
(
5,066
)
$
360
$
(
4,706
)
$
1,239
$
96,988
Allowance for Credit Losses
Balance at
beginning of
period
Charge-
offs
Recoveries
Net
charge-offs
Provision for /(benefit from) credit losses on loans
Balance at
end of
period
(Dollars in thousands)
Three Months Ended June 30, 2024
Real estate:
Commercial real estate owner occupied
$
7,468
$
—
$
11
$
11
$
(
109
)
$
7,370
Commercial real estate non-owner occupied
33,180
(
1
)
—
(
1
)
688
33,867
Construction and development < 60 months
6,596
—
—
—
184
6,780
Construction residential real estate < 60 months
3,464
—
—
—
55
3,519
Residential real estate first lien
4,923
(
67
)
21
(
46
)
695
5,572
Residential real estate all other
1,652
—
3
3
74
1,729
Agriculture
6,137
(
19
)
5
(
14
)
(
206
)
5,917
Commercial non-real estate
20,482
(
780
)
280
(
500
)
1,493
21,475
Consumer non-real estate
4,335
(
510
)
58
(
452
)
500
4,383
Oil and gas
9,030
—
—
—
(
16
)
9,014
Total
$
97,267
$
(
1,377
)
$
378
$
(
999
)
$
3,358
$
99,626
16
Allowance for Credit Losses
Balance at
beginning of
period
Charge-
offs
Recoveries
Net
charge-offs
Provision for /(benefit from) credit losses on loans
Balance at
end of
period
(Dollars in thousands)
Six Months Ended June 30, 2025
Real estate:
Commercial real estate owner occupied
$
6,869
$
(
81
)
$
41
$
(
40
)
$
419
$
7,248
Commercial real estate non-owner occupied
33,097
(
228
)
—
(
228
)
2,348
35,217
Construction and development < 60 months
8,671
(
3,744
)
6
(
3,738
)
(
26
)
4,907
Construction residential real estate < 60 months
2,336
(
25
)
3
(
22
)
(
49
)
2,265
Residential real estate first lien
4,568
(
56
)
12
(
44
)
121
4,645
Residential real estate all other
1,741
(
13
)
21
8
72
1,821
Agriculture
5,696
(
34
)
18
(
16
)
(
549
)
5,131
Commercial non-real estate
24,150
(
727
)
375
(
352
)
249
24,047
Consumer non-real estate
4,833
(
941
)
164
(
777
)
781
4,837
Oil and gas
7,536
—
—
—
(
666
)
6,870
Total
$
99,497
$
(
5,849
)
$
640
$
(
5,209
)
$
2,700
$
96,988
Allowance for Credit Losses
Balance at
beginning of
period
Charge-
offs
Recoveries
Net
charge-offs
Provision for /(benefit from) credit losses on loans
Balance at
end of
period
(Dollars in thousands)
Six Months Ended June 30, 2024
Real estate:
Commercial real estate owner occupied
$
7,483
$
(
15
)
$
31
$
16
$
(
129
)
$
7,370
Commercial real estate non-owner occupied
33,080
(
14
)
—
(
14
)
801
33,867
Construction and development < 60 months
3,950
—
—
—
2,830
6,780
Construction residential real estate < 60 months
3,414
(
3
)
—
(
3
)
108
3,519
Residential real estate first lien
4,914
(
90
)
25
(
65
)
723
5,572
Residential real estate all other
1,646
(
29
)
8
(
21
)
104
1,729
Agriculture
6,137
(
50
)
17
(
33
)
(
187
)
5,917
Commercial non-real estate
22,745
(
3,834
)
313
(
3,521
)
2,251
21,475
Consumer non-real estate
4,401
(
941
)
127
(
814
)
796
4,383
Oil and gas
9,030
(
92
)
—
(
92
)
76
9,014
Total
$
96,800
$
(
5,068
)
$
521
$
(
4,547
)
$
7,373
$
99,626
Purchased Credit Deteriorated Loans
The Company has previously purchased loans, for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination. The Company did not purchase credit-deteriorated loans during the six month period ended June 30, 2025 or June 30, 2024.
17
Collateral Dependent Loans
A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. During the six months ended June 30, 2025 and 2024
, no material amount of interest income was recognized on collateral-dependent loans subsequent to their classification as collateral-dependent.
The following tables summarize collateral-dependent gross loans held for investment by collateral type and the related specific allocation as follows:
Collateral Type
Real Estate
Business Assets
Other Assets
Total
Specific Allocation
(Dollars in thousands)
As of June 30, 2025
Real estate:
Commercial real estate owner occupied
$
1,399
$
—
$
—
$
1,399
$
283
Commercial real estate non-owner occupied
3,652
—
—
3,652
1,031
Construction and development < 60 months
800
—
—
800
225
Construction residential real estate < 60 months
206
—
—
206
75
Residential real estate first lien
333
—
—
333
99
Residential real estate all other
95
—
—
95
32
Agriculture
79
110
12
201
98
Commercial non-real estate
—
7,762
25
7,787
1,764
Consumer non-real estate
—
—
551
551
278
Oil and gas
—
1,111
—
1,111
110
Total collateral-dependent loans held for investment
$
6,564
$
8,983
$
588
$
16,135
$
3,995
Collateral Type
Real Estate
Business Assets
Other Assets
Total
Specific Allocation
(Dollars in thousands)
As of December 31, 2024
Real estate:
Commercial real estate owner occupied
$
—
$
—
$
—
$
—
$
—
Commercial real estate non-owner occupied
7,890
—
—
7,890
879
Construction and development < 60 months
20,142
—
—
20,142
3,755
Construction residential real estate < 60 months
206
—
—
206
75
Residential real estate first lien
300
—
—
300
93
Residential real estate all other
100
—
—
100
34
Agriculture
1,584
110
13
1,707
688
Commercial non-real estate
—
10,087
108
10,195
2,222
Consumer non-real estate
—
—
399
399
242
Oil and gas
—
—
—
—
—
Total collateral-dependent loans held for investment
$
30,222
$
10,197
$
520
$
40,939
$
7,988
Non-Cash Transfers from Loans and Premises and Equipment
Transfers from loans and premises and equipment to OREO and repossessed assets are non-cash transactions, and are not included in the consolidated statements of cash flow.
Transfers from loans and premises and equipment to OREO and repossessed assets during the periods presented are summarized as follows:
Six Months Ended June 30,
2025
2024
(Dollars in thousands)
Other real estate owned
$
18,122
$
8,995
Repossessed assets
1,680
1,575
Total
$
19,802
$
10,570
18
(5) INTANGIBLE ASSETS AND GOODWILL
The following is a summary of intangible assets as of the date listed:
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
(Dollars in thousands)
June 30, 2025
Core deposit intangibles
$
33,550
$
(
22,168
)
$
11,382
Customer relationship intangibles
3,350
(
3,322
)
28
Total
$
36,900
$
(
25,490
)
$
11,410
December 31, 2024
Core deposit intangibles
$
33,550
$
(
20,454
)
$
13,096
Customer relationship intangibles
3,350
(
3,288
)
62
Total
$
36,900
$
(
23,742
)
$
13,158
The following is a summary of goodwill by business segment:
BancFirst Metropolitan Banks
BancFirst Community Banks
Pegasus
Worthington
Other Financial Services
Executive, Operations & Support
Consolidated
(Dollars in thousands)
Six months ended June 30, 2025
Balance at beginning and end of period
$
13,767
$
61,420
$
68,855
$
32,133
$
5,464
$
624
$
182,263
Additional information for intangible assets can be found in Note (7) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2024
.
(6) SUBORDINATED DEBT
In 2004, BFC Capital Trust II (“BFC II”), issued $
26
million of aggregate liquidation amount of
7.20
% Cumulative Trust Preferred Securities (the “Cumulative Trust Preferred Securities”) to other investors. The proceeds from the sale of the Cumulative Trust Preferred Securities and the common securities of BFC II were invested in $
26.8
million of
7.20
% Junior Subordinated Debentures of the Company. Interest payments on the $
26.8
million of
7.20
% Junior Subordinated Debentures are
payable January 15, April 15, July 15 and October 15 of each year.
Such interest payments may be deferred for up to twenty consecutive quarters. The stated maturity date of the $
26.8
million of
7.20
% Junior Subordinated Debentures is
March 31, 2034
, but they are subject to mandatory redemption pursuant to optional prepayment terms. The Cumulative Trust Preferred Securities represent an undivided interest in the $
26.8
million of
7.20
% Junior Subordinated Debentures and are guaranteed by the Company. During any deferral period or during any event of default, the Company may not declare or pay any dividends on any of its capital stock. The Cumulative Trust Preferred Securities have been callable at par, in whole or in part, since March 31, 2009.
On June 17, 2021, the Company completed a private placement, under Regulation D of the Securities Act of 1933, of $
60
million aggregate principal amount of
3.50
% Fixed-to-Floating Rate Subordinated Notes due 2036 (the “Subordinated Notes”) to various institutional accredited investors. The sale of the Subordinated Notes was pursuant to a Subordinated Note Purchase Agreement entered into with each of the investors. The Subordinated Notes qualify as Tier 2 capital under bank regulatory guidelines. The net proceeds to the Company from the sale of the Subordinated Notes were approximately $
59.15
million net of commissions and offering expenses. The Company used the proceeds from the sale of the Subordinated Notes for general corporate purposes.
The Subordinated Notes initially bear interest at a fixed rate of
3.50
% per annum, from and including June 17, 2021 to but excluding June 30, 2031,
payable semi-annually in arrears on June 30 and December 31 of each year
, commencing
December 31, 2021
. Then, from and including June 30, 2031, to but excluding the maturity date, the Subordinated Notes will bear interest at a floating rate equal to the benchmark (initially, three-month term SOFR), reset quarterly, plus a spread of
229
basis points,
payable quarterly in arrears on March 31, June 30, September 30 and December 31 of each year.
The Subordinated Notes mature on
June 30, 2036
.
The Company may, at its option, beginning with the interest payment date of June 30, 2031, and on any scheduled interest payment date thereafter, redeem the Subordinated Notes, in whole or in part. In addition,
the
Company may redeem all, but not less than all, of the Subordinated Notes at any time upon the occurrence of a “Tier 2 Capital Event,” a “Tax Event” or an “Investment Company Event”
19
(each
as defined in the Subordinated Notes). Any such redemption is subject to obtaining the prior approval of the Board of Governors of the Federal Reserve System (or its designee). The redemption price with respect to any such redemption will be equal to
100
% of the principal amount of the Subordinated Note, or portion thereof, to be redeemed, plus accrued but unpaid interest, if any, thereon to, but excluding, the redemption date.
(7) STOCK-BASED COMPENSATION
On May 25, 2023, the shareholders of the Company adopted the BancFirst Corporation 2023 Restricted Stock Unit Plan (the "RSU Plan"). The RSU Plan was effective as of June 1, 2023 and for a period of
ten years
thereafter. The RSU Plan will continue in effect after such ten-year period until all matters relating to the payment of awards and administration of the RSU Plan have been settled. At June 30, 2025 there were
447,175
shares available for future grants.
The restricted stock units ("RSU's") vest beginning
two years
from the date of grant at the rate of
20
% per year for
five years
.
The RSU's are settled and distributed as of each vesting date. The fair value of each RSU granted is equal to the market price of the Company’s stock at the date of grant.
The following table is a summary of the activity under the Company's RSU plan.
Wgtd. Avg.
Restricted
Grant Date
Stock Units
Fair Value
Six Months Ended June 30, 2025
Nonvested at December 31, 2024
42,825
$
90.35
Granted
10,000
122.47
Vested
(
525
)
93.66
Nonvested at June 30, 2025
52,300
96.46
The Company has had the BancFirst Corporation Directors’ Deferred Stock Compensation Plan (the “Deferred Stock Compensation Plan”) since May 1999. As of June 30, 2025, there are
31,459
shares available for future issuance under the Deferred Stock Compensation Plan. The Deferred Stock Compensation Plan will terminate on
December 31, 2030
, if not extended. Under the plan, directors and members of the community advisory boards of the Company and its subsidiaries may defer up to
100
% of their board fees. They are credited for each deferral with a number of stock units based on the current market price of the Company’s stock, which accumulate in an account until such time as the director or community board member terminates serving as a board member. Shares of common stock of the Company are then distributed to the terminating director or community board member based upon the number of stock units accumulated in his or her account. There were
6,462
and
5,022
shares of common stock distributed from the Deferred Stock Compensation Plan during the six months ended June 30, 2025 and 2024, respectively.
A summary of the accumulated stock units under the Deferred Stock Compensation Plan is as follows:
June 30, 2025
December 31, 2024
Accumulated stock units
118,710
120,984
Average price
$
48.04
$
44.70
The Company terminated the BancFirst Corporation Stock Option Plan (the “Employee Plan”) on
June 1, 2023
.
The remaining options will continue to vest and are exercisable beginning
four years
from the date of grant at the rate of
25
% per year for
four years
, and expire no later than the end of
fifteen years
from the date of grant.
The Company terminated the BancFirst Corporation Non-Employee Directors’ Stock Option Plan (the “Non-Employee Directors’ Plan”) on
June 1, 2023
.
The remaining options will continue to vest and are exercisable beginning
one year
from the date of grant at the rate of
25
% per year for
four years
, and expire no later than the end of
fifteen years
from the date of grant.
20
The following table is a summary of the activity under both the Employee Plan and the Non-Employee Directors’ Plan:
Wgtd. Avg.
Wgtd. Avg.
Remaining
Aggregate
Exercise
Contractual
Intrinsic
Options
Price
Term
Value
(Dollars in thousands, except option data)
Six Months Ended June 30, 2025
Outstanding at December 31, 2024
947,921
$
58.42
Options exercised
(
48,625
)
36.78
Options canceled, forfeited, or expired
(
5,000
)
90.56
Outstanding at June 30, 2025
894,296
59.42
9.45
Yrs.
$
57,417
Exercisable at June 30, 2025
378,296
45.03
7.25
Yrs.
$
29,730
The following table has additional information regarding options exercised under both the Employee Plan and the Non-Employee Directors’ Plan:
Three Months Ended
June 30,
Six Months Ended
June 30,
2025
2024
2025
2024
(Dollars in thousands)
Total intrinsic value of options exercised
$
2,446
$
3,254
$
4,180
$
5,085
Cash received from options exercised
1,015
1,714
1,788
2,422
Tax benefit realized from options exercised
588
782
1,005
1,222
The Company currently uses newly issued shares for stock-based compensation plans, but reserves the right to use shares purchased under the Company’s Stock Repurchase Program (the “SRP”) in the future.
Although not required or expected, the Company may settle some options or restricted stock units in cash on a limited basis at the discretion of the Company. The Company had
no
cash settlements during the six months ended June 30, 2025 or June 30, 2024.
Stock-based compensation expense is charged to salaries and benefits expense on the Consolidated Statements of Comprehensive Income.
The components of stock-based compensation expense for all share-based compensation plans and related tax benefits are as follows:
Three Months Ended
June 30,
Six Months Ended
June 30,
2025
2024
2025
2024
(Dollars in thousands)
Stock-based compensation expense
$
919
$
920
$
1,709
$
1,635
Tax benefit
221
221
411
393
Stock-based compensation expense, net of tax
$
698
$
699
$
1,298
$
1,242
The Company amortizes the unearned stock-based compensation expense over the remaining vesting period of approximately
five year
s for unvested stock options and
six year
s for unvested RSU's. The following table shows the unearned stock-based compensation expense for unvested stock options and unvested RSU's:
June 30, 2025
(Dollars in thousands)
Unearned stock-based compensation expense for unvested stock options
$
6,247
Unearned stock-based compensation expense for unvested RSU's
4,056
(8) STOCKHOLDERS’ EQUITY
The Company has adopted a Stock Repurchase Program (the “SRP”). The SRP may be used as a means to increase earnings per share and return on equity. In addition, the SRP may be used to purchase treasury stock for the issuance of stock related to stock-based compensation plans, to provide liquidity for optionees to dispose of stock from exercises of their stock options and to provide liquidity for stockholders wishing to sell their stock. All shares repurchased under the SRP have been retired and not held as treasury stock. The
21
timing, price and amount of stock repurchases under the SRP is determined by management and approved by the Company’s Executive Committee.
The following table is a summary of the shares under the SRP:
June 30, 2025
Shares remaining to be repurchased
479,784
BancFirst Corporation, BancFirst, Pegasus and Worthington are subject to risk-based capital guidelines issued by the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation (“FDIC”). These guidelines are used to evaluate capital adequacy and involve both quantitative and qualitative evaluations of assets, liabilities and certain off-balance-sheet items calculated under regulatory practices. Failure to meet the minimum capital requirements can initiate certain mandatory or discretionary actions by the regulatory agencies that could have a direct material effect on the Company’s consolidated financial statements. The Company believes that as of June 30, 2025
, BancFirst Corporation, BancFirst, Pegasus and Worthington each met all capital adequacy requirements to which they are subject.
The actual and required capital amounts and ratios are shown in the following table:
Required
To Be Well
For Capital
With
Capitalized Under
Adequacy
Capital Conservation
Prompt Corrective
Actual
Purposes
Buffer
Action Provisions
Amount
Ratio
Amount
Ratio
Amount
Ratio
Amount
Ratio
(Dollars in thousands)
As of June 30, 2025:
Total Capital
(to Risk Weighted Assets)-
BancFirst Corporation
$
1,734,570
19.62
%
$
707,153
8.00
%
$
928,138
10.50
%
N/A
N/A
BancFirst
1,308,924
17.86
%
586,412
8.00
%
769,666
10.50
%
$
733,015
10.00
%
Pegasus
160,711
16.88
%
76,179
8.00
%
99,984
10.50
%
95,223
10.00
%
Worthington
58,917
12.10
%
38,946
8.00
%
51,116
10.50
%
48,682
10.00
%
Common Equity Tier 1 Capital
(to Risk Weighted Assets)-
BancFirst Corporation
$
1,551,928
17.56
%
$
397,774
4.50
%
$
618,759
7.00
%
N/A
N/A
BancFirst
1,205,694
16.45
%
329,857
4.50
%
513,111
7.00
%
$
476,460
6.50
%
Pegasus
150,732
15.83
%
42,850
4.50
%
66,656
7.00
%
61,895
6.50
%
Worthington
54,365
11.17
%
21,907
4.50
%
34,078
7.00
%
31,644
6.50
%
Tier 1 Capital
(to Risk Weighted Assets)-
BancFirst Corporation
$
1,577,928
17.85
%
$
530,365
6.00
%
$
751,350
8.50
%
N/A
N/A
BancFirst
1,225,694
16.72
%
439,809
6.00
%
623,063
8.50
%
$
586,412
8.00
%
Pegasus
150,732
15.83
%
57,134
6.00
%
80,940
8.50
%
76,179
8.00
%
Worthington
54,365
11.17
%
29,209
6.00
%
41,380
8.50
%
38,946
8.00
%
Tier 1 Capital
(to Quarterly Average Assets)-
BancFirst Corporation
$
1,577,928
11.43
%
$
552,278
4.00
%
N/A
N/A
N/A
N/A
BancFirst
1,225,694
10.46
%
468,648
4.00
%
N/A
N/A
$
585,810
5.00
%
Pegasus
150,732
10.78
%
55,925
4.00
%
N/A
N/A
69,907
5.00
%
Worthington
54,365
8.75
%
24,865
4.00
%
N/A
N/A
31,081
5.00
%
As of June 30, 2025
, BancFirst, Pegasus and Worthington were classified by the Federal Reserve as “well capitalized” under the prompt corrective action provisions. The Common Equity Tier 1 Capital of BancFirst Corporation, BancFirst, Pegasus and Worthington includes common stock and related paid-in capital and retained earnings. In connection with the adoption of the Basel III Capital Rules, the election was made to opt-out of the requirement to include most components of accumulated other comprehensive income in Common Equity Tier 1 Capital. Common Equity Tier 1 Capital for BancFirst Corporation, BancFirst, Pegasus and Worthington is reduced by goodwill and other intangible assets, net of associated deferred tax liabilities. The Company’s trust preferred securities qualify as Tier 1 capital and its Subordinated Notes qualify as Tier 2 capital. BancFirst, Pegasus and Worthington have had no events or conditions that management believes would materially change their category under capital requirements existing as of the report dates.
22
(9) NET INCOME PER COMMON SHARE
Basic and diluted net income per common share are calculated as follows:
Three Months Ended
June 30,
Six Months Ended
June 30,
2025
2024
2025
2024
(Dollars in thousands, except per share data)
(Numerator)
Income available to common stockholders
$
62,347
$
50,641
$
118,459
$
100,975
(Denominator)
Weighted average shares outstanding for basic earnings per common share
33,255,015
33,001,180
33,243,963
32,974,582
Dilutive effect of stock compensation
540,228
523,881
538,106
545,665
Weighted-average shares outstanding for diluted earnings per common share
33,795,243
33,525,061
33,782,069
33,520,247
Basic earnings per share
$
1.87
$
1.53
$
3.56
$
3.06
Diluted earnings per share
$
1.85
$
1.51
$
3.51
$
3.01
The following table shows the number of options and RSU's that were excluded from the computation of diluted net income per common share for each period because they were anti-dilutive for the period:
Shares
Three Months Ended June 30, 2025
35,492
Three Months Ended June 30, 2024
260,548
Six Months Ended June 30, 2025
35,421
Six Months Ended June 30, 2024
262,251
(10) FAIR VALUE MEASUREMENTS
Accounting standards define fair value as the price that would be received to sell an asset or the price paid to transfer a liability in the principal or most advantageous market available to the entity in an orderly transaction between market participants on the measurement date.
FASB Accounting Standards Codification (“ASC”) Topic 820 establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows:
•
Level 1 Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
•
Level 2 Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset and liability, either directly or indirectly, for substantially the full term of the financial instrument.
•
Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant judgment or estimation. This category includes certain collaterally dependent loans, repossessed assets, other real estate owned, goodwill and other intangible assets.
Financial Assets and Financial Liabilities Measured at Fair Value on a Recurring Basis
A description of the valuation methodologies and key inputs used to measure financial assets and financial liabilities at fair value on a recurring basis, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to the following categories of the Company’s financial assets and financial liabilities.
23
Debt Securities Available for Sale
Debt securities classified as available for sale are reported at fair value. U.S. Treasuries are valued using Level 1 inputs. Other debt securities available for sale including U.S. federal agencies, registered mortgage backed debt securities and state and political subdivisions are valued using prices from an independent pricing service utilizing Level 2 data. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and a bond’s terms and conditions, among other things. The Company also invests in private label mortgage backed debt securities for which observable information is not readily available. These debt securities are reported at fair value utilizing Level 3 inputs. For these debt securities, management determines the fair value based on replacement cost, the income approach or information provided by outside consultants or lead investors. Discount rates are primarily based on reference to interest rate spreads on comparable debt securities of similar duration and credit rating as determined by the nationally recognized rating agencies adjusted for a lack of trading volume. Significant unobservable inputs are developed by investment securities professionals involved in the active trading of similar debt securities.
The Company reviews the prices for Level 1 and Level 2 debt securities supplied by the independent pricing service for reasonableness and to ensure such prices are aligned with traditional pricing matrices. In general, the Company does not purchase investment portfolio debt securities that are esoteric or that have complicated structures. The Company’s portfolio primarily consists of traditional investments including U.S. Treasury obligations, federal agency mortgage pass-through debt securities, general obligation municipal bonds and municipal revenue bonds. Pricing for such instruments is easily obtained. For in-state bond issues that have relatively low issue sizes and liquidity, the Company utilizes the same parameters for pricing mentioned in the preceding paragraph adjusted for the specific issue. Periodically, the Company will validate prices supplied by the independent pricing service by comparison to prices obtained from third party sources.
Derivatives
Derivatives are reported at fair value utilizing Level 2 inputs. The Company obtains dealer and market quotations to value its oil and gas swaps and options. The Company utilizes dealer quotes and observable market data inputs to substantiate internal valuation models.
The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of the periods presented, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:
Level 1 Inputs
Level 2 Inputs
Level 3 Inputs
Total Fair Value
(Dollars in thousands)
June 30, 2025
Debt securities available for sale:
U.S. Treasury
$
1,071,025
$
—
$
—
$
1,071,025
U.S. federal agencies
—
7,501
—
7,501
Mortgage-backed securities
—
12,570
—
12,570
States and political subdivisions
—
5,629
120
5,749
Other debt securities
—
7,198
—
7,198
Derivative assets
—
16,144
—
16,144
Derivative liabilities
—
14,582
—
14,582
December 31, 2024
Debt securities available for sale:
U.S. Treasury
$
1,176,009
$
—
$
—
$
1,176,009
U.S. federal agencies
—
8,232
—
8,232
Mortgage-backed securities
—
13,044
—
13,044
States and political subdivisions
—
6,286
150
6,436
Other debt securities
—
7,196
—
7,196
Derivative assets
—
10,479
—
10,479
Derivative liabilities
—
9,105
—
9,105
24
The changes in Level 3 assets measured at estimated fair value on a recurring basis during the periods presented were as follows:
Six Months Ended June 30,
Twelve Months Ended December 31,
2025
2024
(Dollars in thousands)
Balance at the beginning of the year
$
150
$
180
Settlements
(
30
)
(
30
)
Balance at the end of the period
$
120
$
150
The Company’s policy is to recognize transfers in and transfers out of Levels 1, 2 and 3 as of the end of the reporting period. During the six months ended June 30, 2025, and the year ended December 31, 2024, the Company did not transfer any debt securities.
Financial Assets and Financial Liabilities Measured at Fair Value on a Nonrecurring Basis
Certain financial assets and financial liabilities are measured at fair value on a nonrecurring basis; the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). These financial assets and financial liabilities are reported at fair value utilizing Level 3 inputs.
The Company invests in equity securities without readily determinable fair values and utilizes Level 3 inputs. These equity securities are reported at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The realized and unrealized gains and losses are reported as securities transactions in the noninterest income section of the consolidated statements of comprehensive income.
Collateral dependent loans are reported at the fair value of the underlying collateral if repayment is dependent on liquidation of the collateral. When the Company determines that foreclosure is probable or when the borrower is experiencing financial difficulty at the reporting date and repayment is expected to be provided substantially through the operation or sale of the collateral, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. In no case does the fair value of a collateral dependent loan exceed the fair value of the underlying collateral. The collateral dependent loans are adjusted to fair value through a specific allocation of the allowance for credit losses or a direct charge-down of the loan.
Repossessed assets, upon initial recognition, are measured and adjusted to fair value through a charge-off to the allowance for possible credit losses based upon the fair value of the repossessed asset.
Other real estate owned is revalued at fair value subsequent to initial recognition, with any losses recognized in net expense from other real estate owned.
The following table summarizes assets measured at fair value on a nonrecurring basis during the period presented. These nonrecurring fair values do not represent all assets, only those assets that have been adjusted during the reporting period:
Total Fair Value
Level 3
(Dollars in thousands)
As of and for the Year-to-date Period Ended June 30, 2025
Equity securities
$
7,851
Collateral dependent loans
1,896
Repossessed assets
788
Other real estate owned
23,526
As of and for the Year-to-date Period Ended December 31, 2024
Equity securities
$
13,014
Collateral dependent loans
7,337
Repossessed assets
614
Other real estate owned
32,868
25
Estimated Fair Value of Financial Instruments
The Company is required under current authoritative accounting guidance to disclose the estimated fair value of their financial instruments that are not recorded at fair value. For the Company, as for most financial institutions, substantially all of its assets and liabilities are considered financial instruments. A financial instrument is defined as cash, evidence of an ownership interest in an entity or a contract that creates a contractual obligation or right to deliver or receive cash or another financial instrument from a second entity. The following methods and assumptions are used to estimate the fair value of each class of financial instruments:
Cash and Cash Equivalents Include: Cash and Due from Banks and Interest-Bearing Deposits with Banks
The carrying amount of these short-term instruments is based on a reasonable estimate of fair value.
Federal Funds Sold
The carrying amount of these short-term instruments is a reasonable estimate of fair value.
Debt Securities Held for Investment
For debt securities held for investment, which are generally traded in secondary markets, fair values are based on quoted market prices or dealer quotes, if available. If a quoted market price is not available, fair value is estimated using quoted market prices for similar debt securities making adjustments for credit or liquidity if applicable.
Loans Held for Sale
The Company originates mortgage loans to be sold. At the time of origination, the acquiring bank has already been determined and the terms of the loan, including interest rate, have already been set by the acquiring bank, allowing the Company to originate the loan at fair value. Mortgage loans are generally sold within
30
days of origination. Loans held for sale are valued using Level 2 inputs. Gains or losses recognized upon the sale of the loans are determined on a specific identification basis.
Loans Held for Investment
To determine the fair value of loans held for investment, the Company uses an exit price calculation, which takes into account factors such as liquidity, credit and the nonperformance risk of loans. For certain homogeneous categories of loans, such as some residential mortgages, fair values are estimated using the quoted market prices for securities backed by similar loans, adjusted for differences in loan characteristics. The fair values of other types of loans are estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities.
Deposits
The fair values of transaction and savings accounts are the amounts payable on demand at the reporting date. The fair values of fixed-maturity certificates of deposit are estimated using the rates currently offered for deposits of similar remaining maturities.
Short-Term Borrowings
The amounts payable on these short-term instruments are reasonable estimates of fair value.
Subordinated Debt
The fair values of subordinated debt are estimated using the rates that would be charged for subordinated debt of similar remaining maturities.
Loan Commitments and Letters of Credit
The fair values of commitments are estimated using the fees currently charged to enter into similar agreements, taking into account the terms of the agreements. The fair values of letters of credit are based on fees currently charged for similar agreements.
26
The estimated fair values of the Company’s financial instruments that are reported at amortized cost in the Company’s consolidated balance sheets, segregated by the level of valuation inputs within the fair value hierarchy utilized to measure fair value, are as follows:
June 30, 2025
December 31, 2024
Carrying
Amount
Fair Value
Carrying
Amount
Fair Value
(Dollars in thousands)
FINANCIAL ASSETS
Level 2 inputs:
Cash and cash equivalents
$
3,997,350
$
3,997,350
$
3,553,772
$
3,553,772
Federal funds sold
—
—
$
715
715
Debt securities held for investment
1
1
2
2
Loans held for sale
10,009
10,009
8,073
8,073
Level 3 inputs:
Debt securities held for investment
560
560
835
835
Loans, net of allowance for credit losses
8,017,500
8,845,583
7,925,613
8,643,418
FINANCIAL LIABILITIES
Level 2 inputs:
Deposits
12,056,192
11,347,850
11,718,546
10,966,958
Short-term borrowings
5,860
5,860
—
—
Subordinated debt
86,185
80,644
86,157
77,998
OFF-BALANCE-SHEET FINANCIAL INSTRUMENTS
Loan commitments
4,148
4,313
Letters of credit
667
769
Non-financial Assets and Non-financial Liabilities Measured at Fair Value
The Company has
no
non-financial assets or non-financial liabilities measured at fair value on a recurring basis. In addition, the Company has no non-financial liabilities measured at fair value on a nonrecurring basis. Non-financial assets measured at fair value on a nonrecurring basis include intangible assets. The intangible assets are evaluated at least annually for impairment. The overall levels of non-financial assets measured at fair value on a nonrecurring basis were
no
t considered to be significant to the Company at
June 30, 2025 or December 31, 2024
.
27
(11) DERIVATIVE FINANCIAL INSTRUMENTS
The Company enters into oil and gas swaps and options contracts to accommodate the business needs of its customers. Upon the origination of an oil or gas swap or option contract with a customer, to mitigate the exposure to fluctuations in oil and gas prices, the Company simultaneously enters into an offsetting contract with a counterparty. These derivatives are not designated as hedged instruments and are recorded on the Company's consolidated balance sheet at fair value and are included in other assets. The Company's derivative financial instruments require a daily margin to be posted, which fluctuates with oil and gas prices. At June 30, 2025 and December 31, 2024
, the Company had a margin asset included in other assets in the amount of $
3.6
million and $
463,000
, respectively.
The Company utilizes dealer quotations and observable market data inputs to substantiate internal valuation models. The notional amounts and estimated fair values of oil and gas derivative positions outstanding are presented in the following table:
June 30, 2025
December 31, 2024
Oil and Natural Gas Swaps and Options
Notional Units
Notional
Amount
Estimated
Fair Value
Notional
Amount
Estimated
Fair Value
(Notional amounts and dollars in thousands)
Oil
Derivative assets
Barrels
2,504
$
13,258
2,404
$
7,507
Derivative liabilities
Barrels
(
2,504
)
(
12,644
)
(
2,404
)
(
6,860
)
Gas/Natural Gas Liquids
Derivative assets
MMBTUs/Gallons
36,520
2,886
25,561
2,972
Derivative liabilities
MMBTUs/Gallons
(
36,520
)
(
1,938
)
(
25,561
)
(
2,245
)
Total Fair Value
Included in
Derivative assets
Other assets
16,144
10,479
Derivative liabilities
Other liabilities
(
14,582
)
(
9,105
)
The following table is a summary of the Company's recognized income related to the activity, which was included in other noninterest income:
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
(Dollars in thousands)
(Dollars in thousands)
Derivative income
$
75
$
94
$
296
$
197
The Company's credit exposure on oil and gas swaps and options varies based on the current market prices of oil and natural gas. Other than credit risk, changes in the fair value of customer positions will be offset by equal and opposite changes in the counterparty positions. The net positive fair value of the contracts represents the profit derived from the activity and is unaffected by the market price movements. The Company's share of total profit is approximately
35
%.
Customer credit exposure is managed by strict position limits and is primarily offset by first liens on production while the remainder is offset by cash. Counterparty credit exposure is managed by selecting highly rated counterparties (rated A- or better by Moody's) and monitoring market information.
The following table is a summary of the Company's net credit exposure relating to oil and gas swaps and options with bank counterparties:
June 30, 2025
December 31, 2024
(Dollars in
thousands)
Credit exposure
$
13,377
$
8,074
28
Balance Sheet Offsetting
Derivatives may be eligible for offset in the consolidated balance sheet and/or subject to master netting arrangements. The Company's derivative transactions with upstream financial institution counterparties and bank customers are generally executed under International Swaps and Derivative Association ("ISDA") master agreements, which include "right of set-off" provisions. In such cases there is generally a legally enforceable right to offset recognized amounts and there may be an intention to settle such amounts on a net basis. Nonetheless, the Company does not generally offset such financial instruments for financial reporting purposes.
(12) SEGMENT INFORMATION
The Company, along with its chief operating decision maker (CODM), which is BancFirst Corporation's
Chief Executive Officer
, evaluates its performance with an internal
profitability measurement system that measures the profitability of its business units on a pre-tax basis.
The financial information for each business unit is presented on the basis used internally by management and the CODM to evaluate performance and allocate resources.
The Company utilizes a transfer pricing system to allocate the benefit or cost of funds provided or used by the various business units. Certain services provided by the support group to other business units, such as item processing, are allocated at rates approximating the cost of providing the services. Eliminations are adjustments to consolidate the business units. Capital expenditures are generally charged to the business unit using the asset.
The
six
principal business units are BancFirst metropolitan banks, BancFirst community banks, Pegasus, Worthington, other financial services and executive, operations, support and eliminations. BancFirst metropolitan banks, BancFirst community banks, Pegasus and Worthington offer traditional banking products such as commercial and retail lending and a full line of deposit accounts. BancFirst metropolitan banks consist of banking locations in the metropolitan Oklahoma City and Tulsa areas. BancFirst community banks consist of banking locations in communities in Oklahoma outside the Oklahoma City and Tulsa metropolitan areas. Pegasus consists of banking locations in the Dallas metropolitan area. Worthington consists of banking locations in the Arlington, Fort Worth
and Denton Texas. Other financial services are specialty product business units including guaranteed small business lending, residential mortgage lending, trust services, securities brokerage, electronic banking and insurance. The executive, operations, support and eliminations group represents executive management, operational support, corporate functions that are not allocated to the other business units and elimination adjustments to consolidate the business units.
The results of operations and selected financial information for the six business units are as follows:
BancFirst Metropolitan
Banks
BancFirst Community
Banks
Pegasus
Worthington
Other
Financial
Services
Executive, Operations, Support and Eliminations
Consolidated
(Dollars in thousands)
Three Months Ended June 30, 2025
Interest income
$
49,285
$
109,469
$
20,394
$
9,063
$
2,638
$
(
2,422
)
$
188,427
Interest expense
19,938
40,099
7,701
2,994
979
(
4,540
)
67,171
Total provision for/(benefit
from) credit losses
484
270
111
211
(
7
)
318
1,387
Noninterest income
6,296
18,681
617
236
14,171
8,047
48,048
Depreciation and
amortization
386
2,627
147
161
126
2,106
5,553
Other noninterest expense
11,939
35,812
5,583
3,751
9,344
16,217
82,646
Income before taxes
$
22,834
$
49,342
$
7,469
$
2,182
$
6,367
$
(
8,476
)
$
79,718
Three Months Ended June 30, 2024
Interest income
$
52,828
$
102,615
$
19,533
$
7,832
$
2,368
$
(
6,711
)
$
178,465
Interest expense
23,689
40,905
8,170
3,370
1,265
(
8,830
)
68,569
Total provision for
credit losses
1,949
1,169
130
67
25
18
3,358
Noninterest income
5,562
16,886
339
250
13,513
7,394
43,944
Depreciation and
amortization
536
2,457
151
159
125
1,963
5,391
Other noninterest expense
11,007
32,703
5,309
3,742
10,327
16,837
79,925
Income before taxes
$
21,209
$
42,267
$
6,112
$
744
$
4,139
$
(
9,305
)
$
65,166
29
BancFirst Metropolitan
Banks
BancFirst Community
Banks
Pegasus
Worthington
Other
Financial
Services
Executive, Operations, Support and Eliminations
Consolidated
(Dollars in thousands)
Six Months Ended June 30, 2025
Interest income
$
98,671
$
215,081
$
40,103
$
17,656
$
5,014
$
(
5,622
)
$
370,903
Interest expense
40,467
79,564
14,886
6,191
1,958
(
9,368
)
133,698
Total provision for
credit losses
433
1,457
216
343
11
513
2,973
Noninterest income
12,523
36,427
1,176
465
30,833
15,518
96,942
Depreciation and
amortization
866
5,280
295
329
269
4,208
11,247
Other noninterest expense
23,501
70,538
11,225
7,513
23,961
32,393
169,131
Income before taxes
$
45,927
$
94,669
$
14,657
$
3,745
$
9,648
$
(
17,850
)
$
150,796
Capital expenditures
$
2,511
$
6,815
$
387
$
87
$
887
$
14,367
$
25,054
June 30, 2025
Loans held for investment
$
2,466,154
$
4,114,132
$
887,498
$
479,897
$
95,326
$
71,481
$
8,114,488
Total assets
$
3,443,579
$
8,091,096
$
1,487,269
$
619,458
$
174,366
$
230,012
$
14,045,780
Total deposits
$
2,961,647
$
7,454,342
$
1,265,357
$
530,347
$
—
$
(
155,501
)
$
12,056,192
Six Months Ended June 30, 2024
Interest income
$
103,804
$
201,493
$
38,397
$
15,342
$
4,672
$
(
13,600
)
$
350,108
Interest expense
46,472
79,772
16,167
6,491
2,550
(
17,344
)
134,108
Total provision for
credit losses
1,705
2,492
2,860
189
68
59
7,373
Noninterest income
10,731
32,804
659
471
28,676
15,503
88,844
Depreciation and
amortization
1,083
4,921
332
320
245
3,932
10,833
Other noninterest expense
21,735
66,053
10,440
7,400
20,011
31,623
157,262
Income before taxes
$
43,540
$
81,059
$
9,257
$
1,413
$
10,474
$
(
16,367
)
$
129,376
Capital expenditures
$
2,501
$
5,024
$
43
$
4,658
$
13
$
4,034
$
16,273
June 30, 2024
Loans held for investment
$
2,564,689
$
4,021,062
$
829,826
$
446,972
$
97,044
$
87,855
$
8,047,448
Total assets
$
3,365,250
$
7,489,606
$
1,360,612
$
622,902
$
121,308
$
(
222,360
)
$
12,737,318
Total deposits
$
2,560,657
$
6,874,717
$
1,158,662
$
522,487
$
—
$
(
100,921
)
$
11,015,602
30
Item 2. Management’s Discussio
n and Analysis of Financial Condition and Results of Operations.
The following discussion and analysis of our financial condition as of June 30, 2025 and December 31, 2024 and results of operations for the three and six months ended June 30, 2025 should be read in conjunction with our consolidated financial statements and notes to the consolidated financial statements for the year ended December 31, 2024, and the other information included in
the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
Certain risks, uncertainties and other factors, including those set forth under "Risk Factors" in Part I, Item 1A of the 2024 Form 10-K, and "Item 1A, Risk Factors" in this Quarterly Report on Form 10-Q, may cause actual results to differ materially from the results discussed in the forward-looking statements appearing in this discussion and analysis.
FORWARD LOOKING STATEMENTS
The Company may make forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 with respect to earnings, credit quality, corporate objectives, interest rates and other financial and business matters. Forward-looking statements include estimates and give management’s current expectations or forecasts of future events. The Company cautions readers that these forward-looking statements are subject to numerous assumptions, risks and uncertainties, including economic conditions; the performance of financial markets and interest rates; legislative and regulatory actions and reforms; competition; as well as other factors, all of which change over time. Examples of forward-looking statements include, but are not limited to: (i) projections of revenues, expenses, income or loss, earnings or loss per share, the payment or nonpayment of dividends, capital structure and other financial items; (ii) statements of plans, objectives and expectations, including those relating to products or services; (iii) statements of future economic performance; and (iv) statements of assumptions underlying such statements. Words such as “believes”, “anticipates”, “expects”, “intends”, “targeted”, “continue”, “remain”, “will”, “should”, “may” and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.
Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those in such statements. Factors that could cause actual results to differ from those discussed in the forward-looking statements include, but are not limited to:
•
The effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters.
•
Changes in fiscal, monetary or regulatory policy may have adverse consequences including impacts to the labor market, tariffs and inflation which may impact our financial performance.
•
Changes in the regulatory environment for the banking industry, including rule-making, supervision, examination, and enforcement.
•
The increased time, effort and staffing needs related to ongoing and/or changed regulations from regulatory bodies could negatively impact noninterest expense.
•
Local, regional, national and international economic conditions, including the effect of a government shutdown, and the impact they may have on the Company and its customers.
•
Inflation, including wage inflation, energy prices, securities markets and monetary fluctuations.
•
Changes in oil and gas commodity prices and the potential impact to the related loan portfolio as well as the overall impact to the Oklahoma economic environment.
•
Changes in interest rates.
•
Potential impacts of adverse developments in the banking industry that could impact customer confidence.
•
Further shift in deposit mix from noninterest-bearing deposits to interest-bearing deposits could negatively impact net interest margin.
•
Changes in the financial performance and/or condition of the Company’s borrowers, including the impact of higher interest rates.
•
Changes in consumer spending, borrowing and savings habits.
•
Changes in the mix of loan sectors and types or the level of non-performing assets and charge-offs.
31
•
Deterioration in the market for commercial office property could have an adverse effect on the value of the Company's other real estate owned as well as commercial office collateral for the Company's commercial real estate loans.
•
Impairment of the Company’s goodwill or other intangible assets.
•
Technological changes, fintech competition and disruption to the traditional banking systems, including emerging regulation around stablecoins, blockchain technology in payment networks and market acceptance of digital assets.
•
Cyber threats.
•
The Company’s success at managing the risks involved in the foregoing items.
Actual results may differ materially from forward-looking statements.
SUMMARY
The Company’s net income for the second quarter of 2025 was $62.3 million, compared to $50.6 million for the second quarter of 2024. Diluted net income per common share was $1.85 and $1.51 for the second quarter of 2025 and 2024, respectively.
The Company’s net interest income for the second quarter of 2025 increased to $121.3 million from $109.9 million for the second quarter of 2024. Higher loan volume along with general growth in earning assets were the primary drivers of the change in net interest income. Net interest margin was virtually unchanged at 3.75% for the second quarter of 2025 and 3.76% for the second quarter of 2024. The Company recorded a provision for credit losses on loans of $1.2 million in the second quarter of 2025 compared to $3.4 million for the second quarter of 2024.
Noninterest income for the second quarter of 2025 totaled $48.0 million compared to $43.9 million for the second quarter of 2024. Trust revenue, treasury income, sweep fees, insurance commissions and other noninterest income each increased when compared to second quarter last year. The increase in other noninterest income was driven by changes in cash surrender value of life insurance as well as gains on disposal of other assets. The increases were partially offset by losses on equity securities in the second quarter of 2025.
Noninterest expense grew to $88.2 million for the second quarter of 2025 compared to $85.3 million in the same quarter in 2024. The increase in noninterest expense was primarily related to growth in salaries and employee benefits of $3.2 million.
At June 30, 2025, the Company’s total assets were $14.0 billion, an increase of $491.5 million from December 31, 2024. Loans grew $91.3 million from December 31, 2024, totaling $8.1 billion at June 30, 2025. Deposits totaled $12.1 billion, an increase of $337.6 million from year-end 2024. Sweep accounts totaled $5.3 billion at June 30, 2025, up $66.8 million from December 31, 2024. The Company’s total stockholders’ equity was $1.7 billion, an increase of $106.9 million over December 31, 2024.
Nonaccrual loans totaled $49.9 million, representing 0.61% of total loans at June 30, 2025, down slightly from 0.72% at year-end 2024. The allowance for credit losses to total loans was 1.19% at June 30, 2025, down from 1.24% at December 31, 2024. Net charge-offs were $4.7 million for the second quarter of 2025, including $3.7 million relating to one real estate loan that was taken into other real estate owned, compared to $999,000 for the second quarter of 2024.
See Note (2) of the Notes to Consolidated Financial Statements for disclosure regarding the Company’s recent developments, including mergers and acquisitions.
FUTURE APPLICATION OF ACCOUNTING STANDARDS
See Note (1) of the Notes to the Consolidated Financial Statements for disclosures regarding recently issued accounting pronouncements since December 31, 2024, the date of its most recent annual report to stockholders.
SEGMENT INFORMATION
See Note (12) of the Notes to the Consolidated Financial Statements for disclosures regarding business segments.
32
RESULTS OF OPERATIONS
Average Balances, Income, Expenses and Rates
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.
BANCFIRST CORPORATION
CONSOLIDATED AVERAGE BALANCE SHEETS AND INTEREST MARGIN ANALYSIS
(Unaudited)
Taxable Equivalent Basis
(Dollars in thousands)
Three Months Ended June 30,
2025
2024
Interest
Average
Interest
Average
Average
Income/
Yield/
Average
Income/
Yield/
Balance
Expense
Rate
Balance
Expense
Rate
ASSETS
Earning assets:
Loans
$
8,064,423
$
139,532
6.94
%
$
7,912,469
$
137,846
6.99
%
Securities – taxable
1,139,354
6,887
2.42
1,488,850
8,932
2.41
Securities – tax exempt
2,120
22
4.16
2,408
23
3.79
Federal funds sold and interest-bearing deposits with banks
3,784,951
42,186
4.47
2,322,951
31,805
5.49
Total earning assets
12,990,848
188,627
5.82
11,726,678
178,606
6.11
Nonearning assets:
Cash and due from banks
210,323
203,664
Interest receivable and other assets
869,769
808,283
Allowance for credit losses
(97,898
)
(97,935
)
Total nonearning assets
982,194
914,012
Total assets
$
13,973,042
$
12,640,690
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing liabilities:
Money market and interest-bearing checking deposits
$
5,322,205
$
40,562
3.06
%
$
4,920,793
$
45,296
3.69
%
Savings deposits
1,185,678
9,375
3.17
1,076,338
9,222
3.44
Time deposits
1,565,251
16,152
4.14
1,134,460
12,961
4.58
Short-term borrowings
4,747
51
4.33
4,593
59
5.14
Subordinated debt
86,176
1,031
4.80
86,120
1,031
4.80
Total interest-bearing liabilities
8,164,057
67,171
3.30
7,222,304
68,569
3.81
Interest-free funds:
Noninterest-bearing deposits
3,942,867
3,819,196
Interest payable and other liabilities
169,867
119,175
Stockholders’ equity
1,696,251
1,480,015
Total interest free funds
5,808,985
5,418,386
Total liabilities and stockholders’ equity
$
13,973,042
$
12,640,690
Net interest income
$
121,456
$
110,037
Net interest spread
2.52
%
2.30
%
Effect of interest free funds
1.23
%
1.46
%
Net interest margin
3.75
%
3.76
%
33
BANCFIRST CORPORATION
CONSOLIDATED AVERAGE BALANCE SHEETS AND INTEREST MARGIN ANALYSIS
(Unaudited)
Taxable Equivalent Basis
(Dollars in thousands)
Six Months Ended June 30,
2025
2024
Interest
Average
Interest
Average
Average
Income/
Yield/
Average
Income/
Yield/
Balance
Expense
Rate
Balance
Expense
Rate
ASSETS
Earning assets:
Loans (1)
$
8,057,657
$
276,710
6.93
%
$
7,821,611
$
270,095
6.93
%
Debt securities – taxable
1,167,175
13,893
2.40
1,523,328
18,113
2.38
Debt securities – tax exempt
2,156
44
4.15
2,525
48
3.77
Federal funds sold and interest-bearing deposits with banks
3,639,517
80,654
4.47
2,267,869
62,121
5.49
Total earning assets
12,866,505
371,301
5.82
11,615,333
350,377
6.05
Nonearning assets:
Cash and due from banks
212,578
202,982
Interest receivable and other assets
849,224
806,429
Allowance for credit losses
(98,795
)
(97,498
)
Total nonearning assets
963,007
911,913
Total assets
$
13,829,512
$
12,527,246
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing liabilities:
Transaction deposits
$
5,312,449
$
81,283
3.09
%
$
4,867,783
$
89,513
3.69
%
Savings deposits
1,162,057
18,274
3.17
1,066,532
18,225
3.43
Time deposits
1,530,263
32,022
4.22
1,080,750
24,154
4.48
Short-term borrowings
2,706
58
4.34
6,306
155
4.92
Subordinated debt
86,169
2,061
4.82
86,113
2,061
4.80
Total interest-bearing liabilities
8,093,644
133,698
3.33
7,107,484
134,108
3.78
Interest-free funds:
Noninterest-bearing deposits
3,916,486
3,831,283
Interest payable and other liabilities
149,775
125,536
Stockholders’ equity
1,669,607
1,462,943
Total interest free funds
5,735,868
5,419,762
Total liabilities and stockholders’ equity
$
13,829,512
$
12,527,246
Net interest income
$
237,603
$
216,269
Net interest spread
2.49
%
2.27
%
Effect of interest free funds
1.23
%
1.46
%
Net interest margin
3.72
%
3.73
%
34
Selected income statement data and other selected data for the comparable periods were as follows:
BANCFIRST CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA
(Unaudited)
(Dollars in thousands, except per share data)
Three Months Ended
June 30,
Six Months Ended
June 30,
2025
2024
2025
2024
Income Statement Data
Net interest income
$
121,256
$
109,896
$
237,205
$
216,000
Provision for credit losses on loans
1,239
3,358
2,700
7,373
Securities transactions
(740
)
317
(1,073
)
50
Total noninterest income
48,048
43,944
96,942
88,844
Salaries and employee benefits
55,147
51,928
109,740
103,456
Total noninterest expense
88,199
85,316
180,378
168,095
Net income
62,347
50,641
118,459
100,975
Per Common Share Data
Net income – basic
$
1.87
$
1.53
$
3.56
$
3.06
Net income – diluted
1.85
1.51
3.51
3.01
Cash dividends
0.46
0.43
0.92
0.86
Performance Data
Return on average assets
1.79
%
1.61
%
1.73
%
1.62
%
Return on average stockholders’ equity
14.74
13.72
14.31
13.84
Cash dividend payout ratio
24.60
28.10
25.84
28.10
Net interest spread
2.52
2.30
2.49
2.27
Net interest margin
3.75
3.76
3.72
3.73
Efficiency ratio
52.10
55.46
53.98
55.14
Net charge-offs to average loans
0.05
0.01
0.06
0.06
Net Interest Income
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.
Net interest income for the six months ended June 30, 2025 increased $21.2 million or 9.8% compared to the six months ended June 30, 2024. Higher loan volume along with general growth in earning assets were the primary driver, to the increase.
Provision for Credit Losses on loans
The Company establishes an allowance as an estimate of the expected credit losses in the loan portfolio at the balance sheet date. Management believes the allowance for credit losses is appropriate based upon management’s best estimate of expected losses within the existing loan portfolio. Should any of the factors considered by management in evaluating the appropriate level of the allowance for credit losses change, the Company’s estimate of expected credit losses could also change which could affect the amount of future provisions for credit losses.
Net loan charge-offs were $4.7 million for the second quarter of 2025 compared to net loan charge-offs of $999,000 for the second quarter of 2024. The rate of net charge-offs to average total loans continues to be at a low level.
Net loan charge-offs were $5.2 million for the six months ended June 30, 2025, compared to $4.5 million for the same period of the prior year.
35
Noninterest Income
Noninterest income increased by $4.1 million for the second quarter of 2025 compared to the second quarter of 2024. Trust revenue, treasury income, sweep fees, insurance commissions, and other noninterest income each increased when compared to second quarter last year. The increase in other noninterest income was driven by changes in cash surrender value of life insurance as well as gains on disposal of other assets. The increases were partially offset by losses on equity securities in the second quarter of 2025.
Noninterest income included non-sufficient funds ("NSF") and overdraft fees totaling $7.6 million and $7.3 million for the three months ended June 30, 2025 and 2024, respectively. This represents 15.8% and 16.6% of the Company’s noninterest income for the respective periods. In addition, the Company had debit card usage and interchange fees totaling $6.9 million and $6.8 million during the three months ended June 30, 2025 and 2024, respectively. This represents 14.3% and 15.4% of the Company’s noninterest income for the respective periods.
Noninterest income increased by $8.1 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. Trust revenue, treasury income, sweep fees, insurance commissions, and other noninterest income each increased when compared to the same period last year. The increase in other noninterest income was driven by changes in cash surrender value of life insurance as well as gains on disposal of other assets. The increases were partially offset by losses on equity securities in 2025.
Noninterest income included NSF and overdraft fees totaling $15.0 million and $14.4 million during the six months ended June 30, 2025 and 2024, respectively. This represents 15.5% and 16.2% of the Company’s noninterest income for the respective periods. In addition, the Company had debit card usage and interchange fees totaling $13.4 million and $13.3 million during the six months ended June 30, 2025 and 2024, respectively. This represents 13.8% and 15.0% of the Company’s noninterest income for the respective periods.
Noninterest Expense
Noninterest expense increased by $2.9 million for second quarter of 2025 compared to the second quarter of 2024. The increase in noninterest expenses was primarily related to growth in salaries and employee benefits of $3.2 million.
For the six months ended June 30, 2025, noninterest expense increased by $12.3 million compared to the six months ended June 30, 2024. Higher noninterest expenses in 2025 were primarily related to growth in salaries and employee benefits of $6.3 million, an increase in occupancy expense of $1.4 million and an increase in the net expense from other real estate owned of $1.7 million. In addition, the Company recorded an expense related to the disposition of certain equity investments no longer permissible under the Volcker Rule, which prohibits banks with more than $10 billion in assets from holding certain private equity investments.
Income Taxes
The Company’s effective tax rate was 21.8% for the second quarter of 2025, compared to 22.3% for the second quarter of 2024.
The Company’s effective tax rate was 21.4% for the six months ended June 30, 2025, compared to 22.0% for the six months ended June 30, 2024.
The primary reasons for the difference between the Company’s effective tax rate and the federal statutory rate were tax-exempt income, nondeductible amortization, federal and state tax credits and state tax expense.
36
FINANCIAL POSITION
BANCFIRST CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands, except per share data)
June 30,
December 31,
2025
2024
(unaudited)
Balance Sheet Data
Total assets
$
14,045,780
$
13,554,314
Interest-bearing deposits with banks
3,737,763
3,315,932
Debt securities
1,104,604
1,211,754
Total loans (net of unearned interest)
8,124,497
8,033,183
Allowance for credit losses
96,988
99,497
Noninterest-bearing demand deposits
3,967,626
3,907,060
Money market and interest-bearing checking deposits
5,301,439
5,231,327
Savings deposits
1,205,602
1,110,020
Time deposits
1,581,525
1,470,139
Total deposits
12,056,192
11,718,546
Stockholders' equity
1,728,038
1,621,187
Book value per share
51.94
48.81
Tangible book value per share (non-GAAP)(1)
46.12
42.92
Reconciliation of Tangible Book Value per Common Share (non-GAAP)(2)
Stockholders' equity
$
1,728,038
$
1,621,187
Less goodwill
182,263
182,263
Less intangible assets, net
11,410
13,158
Tangible stockholders' equity (non-GAAP)
$
1,534,365
$
1,425,766
Common shares outstanding
33,272,131
33,216,519
Tangible book value per share (non-GAAP)
$
46.12
$
42.92
Selected Financial Ratios
Balance Sheet Ratios:
Average loans to deposits (year-to-date)
67.59
%
71.50
%
Average earning assets to total assets (year-to-date)
93.04
92.91
Average stockholders’ equity to average assets (year-to-date)
12.07
11.78
Asset Quality Data
Loans past due 90 days and still accruing
$
7,515
$
7,739
Nonaccrual loans (3)
49,878
57,984
Other real estate owned and repossessed assets
53,022
33,665
Asset Quality Ratios:
Nonaccrual loans to total loans
0.61
%
0.72
%
Allowance for credit losses to total loans
1.19
1.24
Allowance for credit losses to nonaccrual loans
194.45
171.59
(1) Refer to the “Reconciliation of Tangible Book Value per Common Share (non-GAAP)” table.
(2) Tangible book value per common share is stockholders’ equity less goodwill and intangible assets, net, divided by common shares outstanding. This amount is a non-GAAP financial measure but has been included as it is considered to be a critical metric with which to analyze and evaluate the financial condition and capital strength of the Company. This measure should not be considered a substitute for operating results determined in accordance with GAAP.
(3) Government agencies guaranteed approximately $9.5 million of nonaccrual loans at June 30, 2025.
Cash and Due from Banks, Federal Funds Sold and Interest-Bearing Deposits with Banks
The aggregate of cash and due from banks, federal funds sold and interest-bearing deposits with banks increased by $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.
37
Securities
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.
See Note (3) of the Notes to Consolidated Financial Statements for disclosures regarding the Company’s securities.
Loans
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.
See Note (4) of the Notes to Consolidated Financial Statements for disclosures regarding the Company’s loan portfolio segments.
Allowance for Credit Losses
The overall credit quality of the Company's loan portfolio has remained strong. If unforeseen adverse changes occur in the national or local economy, or in the credit markets, it would be reasonable to expect that the allowance for credit losses would increase in future periods.
Nonaccrual Loans
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.
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.
Modified Loans
The current and future financial effects of the recorded balance of loans considered to be modified during the period were not material. The recorded balance of loans modified during the six months ended June 30, 2025 was approximately $3.6 million compared to $14.8 million during the year ended December 31, 2024.
Other Real Estate Owned and Repossessed Assets
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
38
development real estate loan and recorded $15.6 million in other real estate owned ("OREO"), which was the primary reason for the increase in OREO. The Company's write-downs of OREO totaled $20,000 for the six months ended June 30, 2025 compared to $50,000 for the six months ended June 30, 2024.
OREO also included a larger commercial real estate property recorded at $30.7 million at June 30, 2025 and $28.1 million at December 31, 2024. During the six months ended June 30, 2025, the Company made $2.6 million of tenant improvements to this property, which contributed to the increase of total OREO. Rental income for this property is included in other noninterest income on the consolidated statements of comprehensive income. Operating expense for this property is included in net expense from OREO in other noninterest expense on the consolidated statements of comprehensive income.
This property had the following rental income and operating expenses for the periods presented:
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
(Dollars in thousands)
Rental income
$
3,202
$
3,085
$
6,323
$
6,026
Operating expense
2,673
2,673
5,297
4,923
The Company's total rental income and operating expenses from OREO are presented in the following table:
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
(Dollars in thousands)
Rental income
$
3,202
$
3,083
$
6,323
$
6,085
Operating expense
2,837
2,802
5,500
5,131
Intangible Assets, Goodwill and Other Assets
Identifiable intangible assets and goodwill totaled $193.7 million and $195.4 million at June 30, 2025 and December 31, 2024, respectively.
Other assets included the cash surrender value of key-man life insurance policies totaling $84.7 million at June 30, 2025 and $84.4 million at December 31, 2024.
Derivative financial instruments consisting of oil and gas swaps and option contracts are included in other assets and totaled $16.1 million at June 30, 2025 and $10.5 million at December 31, 2024. They require a daily margin to be posted, which fluctuates with oil and gas prices and customer activity. The Company had a margin asset included in other assets in the amount of $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.
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.
Low-Income Housing, New Market Tax Credit Investments and Historic Tax Credit Investments
During 2025, the Company’s low-income housing tax credit ("LIHTC") investments increased $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.
39
See Note (6) of the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 for disclosures regarding these investments.
Liquidity and Funding
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.
There have not been any other material changes from the liquidity and funding discussion included in Management’s Discussion and Analysis in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
Deposits
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.
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.
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.
Subordinated Debt
See Note (6) of the Notes to Consolidated Financial Statements for a complete discussion of the Company’s subordinated debt.
Lines of Credit
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.
Capital Resources
Stockholders’ equity totaled $1.7 billion at June 30, 2025, an increase of $106.9 million from December 31, 2024. In addition to net income of $118.5 million, other changes in stockholders’ equity during the six months ended June 30, 2025 included $2.0 million related to common stock issuances for stock-based compensation plans, $1.7 million related to stock-based compensation and $15.3 million in accumulated other comprehensive income that were partially offset by $30.6 million in dividends. The Company’s leverage ratio and total risk-based capital ratios at June 30, 2025 were well in excess of the regulatory requirements.
See Note (8) of the Notes to Consolidated Financial Statements for a discussion of capital ratios and requirements.
40
Liquidity Risk and Off-Balance-Sheet Arrangements
There have not been any material changes in the Company’s liquidity risk and off-balance-sheet arrangements included in Management’s Discussion and Analysis which was included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
Item
3. Quantitative and Qualitative Disclosures About Market Risk.
There have been no significant changes in the Company’s disclosures regarding market risk since December 31, 2024, the date of its most recent annual report to stockholders.
Item 4. Controls and Procedures.
Evaluation of Disclosure Controls and Procedures
. Pursuant to Rule 13a-15 of the Securities Exchange Act of 1934 (the “Exchange Act”), the Company’s Chief Executive Officer, Chief Financial Officer and its Disclosure Committee, which includes the Company’s Chairman of the Board, Chief Risk Officer, Chief Internal Auditor, Chief Asset Quality Officer, Controller, General Counsel and Director of Financial Reporting, have evaluated, as of the last day of the period covered by this report, the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act). Based on their evaluation they concluded that the disclosure controls and procedures of the Company are effective to ensure that information required to be disclosed by the Company in the reports filed or submitted by it under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time periods specified in the applicable rules and forms.
Changes in Internal Control Over Financial Reporting
. During the period to which this report relates, there have not been any changes in the Company’s internal controls over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act) that have materially affected, or are reasonably likely to materially affect, such controls.
41
PART II – OTHER INFORMATION
Item 1. Legal Proceedings.
The Company has been named as a defendant in various legal actions arising from the conduct of its normal business activities. Although the amount of any liability that could arise with respect to these actions cannot be accurately predicted, in the opinion of the Company, any such liability will not have a material adverse effect on the consolidated financial statements of the Company.
Item 1A. Risk Factors.
As of June 30, 2025, there have been no material changes from the risk factors previously disclosed in Part I, Item 1A, of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Inline XBRL Taxonomy Extension Schema with Embedded Linkbase Documents.
104
Cover page Interactive Data File (formatted as Inline XBRL and included in Exhibit 101).
*
Filed herewith.
**
This exhibit is furnished herewith and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act.
43
SIG
NATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Customers and Suppliers of BANCFIRST CORP /OK/
Beta
No Customers Found
No Suppliers Found
Bonds of BANCFIRST CORP /OK/
Price Graph
Price
Yield
Insider Ownership of BANCFIRST CORP /OK/
company Beta
Owner
Position
Direct Shares
Indirect Shares
AI Insights
Summary Financials of BANCFIRST CORP /OK/
Beta
(We are using algorithms to extract and display detailed data. This is a hard problem and we are working continuously to classify data in an accurate and useful manner.)