Key TakeawaysThe U.S. government shutdown is set to extend into next week after the Senate failed to advance both Democratic and Republican funding bills, leaving approximately 750,000 federal workers furloughed.A significant fire at Chevron's El Segundo Refinery (CVX) in California, the largest on the West Coast, has been contained, but analysts anticipate a 35 to 95 cent per gallon increase in California gas prices.3M (MMM) is reportedly exploring a multibillion-dollar carve-out of its industrials arm, a ...

The Federal Reserve Board on Friday announced its approval of the proposal by BancFirst Corporation, of Oklahoma City, Oklahoma, to acquire AmeriBank Holding Company, and thereby indirectly acquire American Bank of Oklahoma, both of Collinsville, Oklahoma. For media inquiries, please email [email protected] or call 202-452-2955. ...

Core Viewpoint - BancFirst Corporation is currently not generating returns that exceed its cost of capital, indicating limited value creation for shareholders [2][5] Company Overview - BancFirst Corporation is a financial services company based in Oklahoma, offering a range of banking services including commercial and retail banking, investment management, and trust services [1] Financial Performance Metrics - BancFirst's Return on Invested Capital (ROIC) is 11.75% and its Weighted Average Cost of Capital (WACC) is 12.20%, resulting in a ROIC to WACC ratio of 0.96 [2][5] - Community Trust Bancorp, Inc. (CTBI) has a ROIC of 8.01% and a WACC of 12.78%, with a ROIC to WACC ratio of 0.63, indicating similar challenges in value creation [3] - City Holding Company (CHCO) shows strong value creation with a ROIC of 35.96% and a WACC of 8.04%, resulting in a ROIC to WACC ratio of 4.47 [3][5] - Westamerica Bancorporation (WABC) has a ROIC of 11.74% and a WACC of 6.90%, leading to a favorable ROIC to WACC ratio of 1.70 [4][5] - BOK Financial Corporation (BOKF) and Arrow Financial Corporation (AROW) exhibit less favorable ratios, with BOKF at 0.30 and AROW at -0.04, indicating challenges in capital efficiency [4]

Core Insights - Crude Value Insights provides an investment service and community focused on the oil and natural gas sector, emphasizing cash flow generation and growth potential [1] - Subscribers benefit from a model account featuring over 50 stocks, detailed cash flow analyses of exploration and production (E&P) firms, and live discussions about the sector [1] Subscription Offer - A two-week free trial is available for new subscribers, allowing them to explore the oil and gas investment opportunities [2]

Core Insights - BancFirst Corporation (NASDAQ:BANF) is a financial services company based in Oklahoma City, offering a range of banking services and competing with regional banks [1] - The company's Return on Invested Capital (ROIC) is 11.75%, slightly below its Weighted Average Cost of Capital (WACC) of 12.00%, indicating a need for improvement in capital efficiency [2][5] Comparative Analysis - Community Trust Bancorp, Inc. (CTBI) has a ROIC of 8.01% and a WACC of 12.54%, resulting in a ROIC to WACC ratio of 0.638, indicating lower efficiency compared to BancFirst [3] - City Holding Company (CHCO) demonstrates superior efficiency with a ROIC of 35.96% and a WACC of 7.94%, achieving the highest ROIC to WACC ratio of 4.52 among peers [3][5] - Westamerica Bancorporation (WABC) shows strong performance with a ROIC of 12.40% and a WACC of 6.86%, resulting in a ROIC to WACC ratio of 1.80, indicating effective capital utilization [4][5] - BOK Financial Corporation (BOKF) and Arrow Financial Corporation (AROW) exhibit less favorable results, with ROIC to WACC ratios of 0.300 and -0.041, respectively, suggesting inefficiencies in their capital utilization [4]

Core Viewpoint - BancFirst (BANF) has experienced a bearish trend recently, losing 6.1% over the past four weeks, but the formation of a hammer chart pattern suggests a potential trend reversal as buying interest may be increasing [1][2]. Technical Analysis - The hammer chart pattern indicates a potential bottom in the stock price, suggesting that selling pressure may be exhausting and that bulls could be gaining control [2][5]. - A hammer pattern forms when there is a small candle body with a long lower wick, typically occurring during a downtrend, signaling a possible reversal if it appears at the bottom of the trend [4][5]. Earnings Estimates - Recent upward revisions in earnings estimates for BANF serve as a bullish indicator, correlating strongly with near-term stock price movements [7]. - Over the last 30 days, the consensus EPS estimate for the current year has increased by 2.7%, indicating that analysts expect better earnings than previously predicted [8]. Zacks Rank - BANF currently holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [9]. - The Zacks Rank is a reliable timing indicator, suggesting that the company's prospects are improving, further supporting the potential for a turnaround in BANF's stock [10].

[PART I – FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) This section presents the unaudited consolidated financial statements and management's discussion and analysis of the Company's financial condition and results of operations [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited consolidated financial statements, including balance sheets, statements of comprehensive income, shareholders' equity, and cash flow, along with detailed notes explaining significant accounting policies, recent developments, and specific financial instrument breakdowns [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets show an increase in total assets, primarily driven by growth in interest-bearing deposits with banks and loans, alongside a corresponding rise in total deposits and stockholders' equity Consolidated Balance Sheets (Dollars in thousands) | Metric | June 30, 2025 (Unaudited) (Dollars in thousands) | December 31, 2024 (See Note 1) (Dollars in thousands) | | :----------------------------------- | :-------------------------- | :----------------------------- | | **ASSETS** | | | | Cash and due from banks | $259,587 | $237,840 | | Interest-bearing deposits with banks | $3,737,763 | $3,315,932 | | Debt securities available for sale | $1,104,043 | $1,210,917 | | Loans held for investment (net) | $8,114,488 | $8,025,110 | | Allowance for credit losses | ($96,988) | ($99,497) | | Total assets | $14,045,780 | $13,554,314 | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | Total deposits | $12,056,192 | $11,718,546 | | Total liabilities | $12,317,742 | $11,933,127 | | Total stockholders' equity | $1,728,038 | $1,621,187 | | Total liabilities and stockholders' equity | $14,045,780 | $13,554,314 | [Consolidated Statements of Comprehensive Income](index=4&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) The Company reported increased net income and diluted EPS for both the three and six months ended June 30, 2025, driven by higher net interest income and noninterest income, despite a decrease in the provision for credit losses Consolidated Statements of Comprehensive Income (Dollars in thousands) | Metric | Three Months Ended June 30, 2025 (Dollars in thousands) | Three Months Ended June 30, 2024 (Dollars in thousands) | Six Months Ended June 30, 2025 (Dollars in thousands) | Six Months Ended June 30, 2024 (Dollars in thousands) | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total interest income | $188,427 | $178,465 | $370,903 | $350,108 | | Total interest expense | $67,171 | $68,569 | $133,698 | $134,108 | | Net interest income | $121,256 | $109,896 | $237,205 | $216,000 | | Total provision for credit losses | $1,387 | $3,358 | $2,973 | $7,373 | | Total noninterest income | $48,048 | $43,944 | $96,942 | $88,844 | | Total noninterest expense | $88,199 | $85,316 | $180,378 | $168,095 | | Net income | $62,347 | $50,641 | $118,459 | $100,975 | | Basic Net Income Per Common Share | $1.87 | $1.53 | $3.56 | $3.06 | | Diluted Net Income Per Common Share | $1.85 | $1.51 | $3.51 | $3.01 | - Other comprehensive income, net of tax, significantly increased to **$15,297 thousand** for the six months ended June 30, 2025, compared to **$1,801 thousand** in the prior year, primarily due to unrealized income on debt securities[15](index=15&type=chunk) [Consolidated Statements of Shareholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Shareholders'%20Equity) Shareholders' equity increased, driven by net income and contributions from stock-based compensation plans, partially offset by common stock dividends. Accumulated other comprehensive loss improved due to net changes in unrealized gains on securities Consolidated Statements of Shareholders' Equity (Dollars in thousands) | Metric | June 30, 2025 (Dollars in thousands) | June 30, 2024 (Dollars in thousands) | | :----------------------------------- | :------------ | :------------ | | Common Stock Issued at end of period | $33,272 | $33,022 | | Capital Surplus at end of period | $190,698 | $178,806 | | Retained Earnings at end of period | $1,521,631 | $1,348,905 | | Accumulated Other Comprehensive Loss | ($17,563) | ($48,241) | | Total Stockholders' Equity | $1,728,038 | $1,512,492 | - Net income for the six months ended June 30, 2025, was **$118,459 thousand**, contributing to retained earnings, while dividends on common stock totaled **$30,596 thousand**[17](index=17&type=chunk) [Consolidated Statements of Cash Flow](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flow) Operating activities provided less cash in the current period, while investing activities saw a significant reduction in cash used. Financing activities provided more cash, primarily due to a net change in deposits, leading to a substantial net increase in cash and equivalents Consolidated Statements of Cash Flow (Dollars in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 (Dollars in thousands) | Six Months Ended June 30, 2024 (Dollars in thousands) | | :----------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $155,074 | $166,475 | | Net cash used in investing activities | ($26,414) | ($361,268) | | 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 end of period | $3,997,350 | $2,493,292 | - The significant decrease in cash used in investing activities was largely due to a smaller net change in loans and lower net payments on derivative asset contracts compared to the prior year[20](index=20&type=chunk) [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes provide essential context and detailed breakdowns for the consolidated financial statements, covering accounting policies, recent acquisitions, securities, loan portfolio quality, intangible assets, debt, stock-based compensation, equity, EPS, fair value measurements, derivatives, and segment performance [(1) DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=8&type=section&id=(1)%20DESCRIPTION%20OF%20BUSINESS%20AND%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note outlines the Company's accounting and reporting policies, the entities included in the consolidated financial statements, the use of estimates, and the expected impact of recently issued accounting pronouncements - The consolidated financial statements include BancFirst Corporation and its subsidiaries, such as Council Oak Partners, LLC, BFC-PNC, LLC, BancFirst Insurance Services, Inc., Pegasus Bank, Worthington Bank, and BancFirst[23](index=23&type=chunk) - Recently issued ASUs (2024-03 on expense disaggregation and 2023-09 on income tax disclosures) are not expected to have a material impact on the Company's consolidated financial statements[27](index=27&type=chunk)[28](index=28&type=chunk) [(2) RECENT DEVELOPMENTS, INCLUDING MERGERS AND ACQUISITIONS](index=8&type=section&id=(2)%20RECENT%20DEVELOPMENTS,%20INCLUDING%20MERGERS%20AND%20ACQUISITIONS) The Company announced an agreement to acquire American Bank of Oklahoma (ABOK), a community bank with significant assets, loans, and deposits, with the transaction expected to close in the third quarter of 2025 - On May 20, 2025, BancFirst Corporation entered into an agreement to acquire American Bank of Oklahoma (ABOK)[29](index=29&type=chunk) - ABOK has approximately **$385 million** in total assets, **$280 million** in loans, and **$320 million** in deposits[29](index=29&type=chunk) - The transaction is expected to close in the third quarter of 2025, with the merger into BancFirst anticipated in the fourth quarter of 2025[29](index=29&type=chunk)[30](index=30&type=chunk) [(3) SECURITIES](index=10&type=section&id=(3)%20SECURITIES) This note details the Company's debt securities portfolio, distinguishing between held-for-investment and available-for-sale categories, and provides a summary of their amortized cost, fair values, and unrealized gains/losses, noting no sales during the period Debt Securities Portfolio (Dollars in thousands) | Metric | June 30, 2025 (Dollars in thousands) | December 31, 2024 (Dollars in thousands) | | :----------------------------------- | :----------------------------------- | :----------------------------------- | | **Debt Securities Held for Investment** | | | | Amortized Cost | $561 | $837 | | Estimated Fair Value | $561 | $837 | | **Debt Securities Available for Sale** | | | | Amortized Cost | $1,127,048 | $1,253,968 | | Estimated Fair Value | $1,104,043 | $1,210,917 | | Gross Unrealized Losses | ($23,789) | ($43,134) | - The Company had no sales of debt securities, and therefore no proceeds or realized gains/losses, for the six months ended June 30, 2025 or 2024[35](index=35&type=chunk) - Unrealized losses on available-for-sale debt securities are primarily due to increases in market interest rates, with the Company having the ability and intent to hold these securities for recovery[36](index=36&type=chunk) [(4) LOANS HELD FOR INVESTMENT AND ALLOWANCE FOR CREDIT LOSSES ON LOANS](index=13&type=section&id=(4)%20LOANS%20HELD%20FOR%20INVESTMENT%20AND%20ALLOWANCE%20FOR%20CREDIT%20LOSSES%20ON%20LOANS) This note provides a detailed breakdown of the loan portfolio, credit risk management, changes in Other Real Estate Owned (OREO), trends in nonaccrual loans, and activity in the allowance for credit losses, highlighting a significant increase in OREO due to a foreclosed construction loan Loans Held for Investment by Category (Dollars in thousands) | Loan Category | June 30, 2025 (Dollars in thousands) | December 31, 2024 (Dollars in thousands) | | :----------------------------------- | :----------------------------------- | :----------------------------------- | | Real estate: Commercial owner occupied | $937,426 | $931,709 | | Real estate: Commercial non-owner occupied | $1,674,229 | $1,578,483 | | Construction and development < 60 months | $684,291 | $756,662 | | Commercial non-real estate | $1,427,576 | $1,363,462 | | Oil and gas | $472,105 | $509,858 | | Total Loans Held for Investment | $8,114,488 | $8,025,110 | - Other Real Estate Owned (OREO) and repossessed assets increased to **$53,022 thousand** at June 30, 2025, from **$33,665 thousand** at December 31, 2024, primarily due to a **$15.6 million** foreclosure on a construction and development real estate loan[41](index=41&type=chunk) Credit Quality Metrics (Dollars in thousands) | Metric | June 30, 2025 (Dollars in thousands) | December 31, 2024 (Dollars in thousands) | | :----------------------------------- | :----------------------------------- | :----------------------------------- | | Total Nonaccrual Loans | $49,878 | $57,984 | | Allowance for Credit Losses | $96,988 | $99,497 | | Net Charge-offs (3 months ended June 30, 2025) | $5,066 | $1,377 | | Net Charge-offs (6 months ended June 30, 2025) | $5,849 | $5,068 | [(5) INTANGIBLE ASSETS AND GOODWILL](index=27&type=section&id=(5)%20INTANGIBLE%20ASSETS%20AND%20GOODWILL) This note summarizes the Company's intangible assets and goodwill, showing a slight decrease in net intangible assets while goodwill remained stable across business segments Intangible Assets, Net (Dollars in thousands) | Intangible Asset | June 30, 2025 (Net Carrying Amount) (Dollars in thousands) | December 31, 2024 (Net Carrying Amount) (Dollars in thousands) | | :----------------------------------- | :---------------------------------- | :------------------------------------ | | Core deposit intangibles | $11,382 | $13,096 | | Customer relationship intangibles | $28 | $62 | | Total Intangible Assets, Net | $11,410 | $13,158 | - Goodwill remained constant at **$182,263 thousand** for both June 30, 2025, and December 31, 2024, distributed across BancFirst Metropolitan Banks, Community Banks, Pegasus, Worthington, Other Financial Services, and Executive, Operations & Support segments[65](index=65&type=chunk) [(6) SUBORDINATED DEBT](index=27&type=section&id=(6)%20SUBORDINATED%20DEBT) This note details the Company's subordinated debt, comprising 7.20% Cumulative Trust Preferred Securities and 3.50% Fixed-to-Floating Rate Subordinated Notes, outlining their terms, interest rates, maturity dates, and redemption options - The Company has **$26 million** of 7.20% Cumulative Trust Preferred Securities, maturing March 31, 2034, callable since March 31, 2009[66](index=66&type=chunk) - The Company issued **$60 million** of 3.50% Fixed-to-Floating Rate Subordinated Notes due 2036, which qualify as Tier 2 capital and bear a fixed rate until June 30, 2031, then a floating rate (SOFR + 229 bps)[67](index=67&type=chunk) - The Subordinated Notes are redeemable at the Company's option starting June 30, 2031, or upon specific events, subject to Federal Reserve approval[68](index=68&type=chunk)[69](index=69&type=chunk) [(7) STOCK-BASED COMPENSATION](index=29&type=section&id=(7)%20STOCK-BASED%20COMPENSATION) This note describes the Company's stock-based compensation plans, including the RSU Plan, Deferred Stock Compensation Plan, and terminated Stock Option Plans, detailing activity, shares available, and recognized expenses - The BancFirst Corporation 2023 Restricted Stock Unit Plan (RSU Plan) had **447,175 shares** available for future grants at June 30, 2025, with RSUs vesting **20% per year** over five years[70](index=70&type=chunk) - The Deferred Stock Compensation Plan had **31,459 shares** available for future issuance at June 30, 2025[72](index=72&type=chunk) Stock-Based Compensation Expense (Dollars in thousands) | Metric | Six Months Ended June 30, 2025 (Dollars in thousands) | Six Months Ended June 30, 2024 (Dollars in thousands) | | :----------------------------------- | :------------------------------------------ | :------------------------------------------ | | Stock-based compensation expense | $1,709 | $1,635 | | Tax benefit | $411 | $393 | | Stock-based compensation expense, net of tax | $1,298 | $1,242 | [(8) STOCKHOLDERS' EQUITY](index=30&type=section&id=(8)%20STOCKHOLDERS'%20EQUITY) This note outlines the Company's Stock Repurchase Program and details the capital adequacy ratios for BancFirst Corporation and its subsidiaries, confirming they meet or exceed regulatory requirements and are classified as 'well capitalized' - As of June 30, 2025, **479,784 shares** remained to be repurchased under the Company's Stock Repurchase Program[80](index=80&type=chunk) Capital Adequacy Ratios (BancFirst Corporation) | Capital Ratio (BancFirst Corporation) | Actual Ratio (June 30, 2025) | Required for Capital Adequacy Purposes | | :----------------------------------- | :--------------------------- | :------------------------------------- | | Total Capital (to RWA) | 19.62% | 8.00% | | Common Equity Tier 1 Capital (to RWA) | 17.56% | 4.50% | | Tier 1 Capital (to RWA) | 17.85% | 6.00% | | Tier 1 Capital (to Quarterly Average Assets) | 11.43% | 4.00% | - BancFirst, Pegasus, and Worthington were all classified as 'well capitalized' by the Federal Reserve under prompt corrective action provisions as of June 30, 2025[80](index=80&type=chunk) [(9) NET INCOME PER COMMON SHARE](index=34&type=section&id=(9)%20NET%20INCOME%20PER%20COMMON%20SHARE) This note presents the calculation of basic and diluted net income per common share for the three and six months ended June 30, 2025 and 2024, showing an increase in both metrics Net Income Per Common Share | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Basic earnings per share | $1.87 | $1.53 | $3.56 | $3.06 | | Diluted earnings per share | $1.85 | $1.51 | $3.51 | $3.01 | | Weighted average shares outstanding for basic EPS | 33,255,015 | 33,001,180 | 33,243,963 | 32,974,582 | | Weighted-average shares outstanding for diluted EPS | 33,795,243 | 33,525,061 | 33,782,069 | 33,520,247 | - Fewer options and RSUs were excluded from diluted EPS computation as anti-dilutive in 2025 compared to 2024, indicating a more dilutive effect of stock compensation[82](index=82&type=chunk) [(10) FAIR VALUE MEASUREMENTS](index=34&type=section&id=(10)%20FAIR%20VALUE%20MEASUREMENTS) This note defines the fair value hierarchy (Level 1, 2, 3) and provides a detailed breakdown of financial assets and liabilities measured at fair value on both a recurring and nonrecurring basis, including debt securities, derivatives, and collateral-dependent loans - The fair value hierarchy categorizes inputs into Level 1 (quoted prices in active markets), Level 2 (observable inputs), and Level 3 (unobservable inputs)[85](index=85&type=chunk) Recurring Fair Value Measurements (June 30, 2025) (Dollars in thousands) | Financial Asset/Liability (June 30, 2025) | Level 1 Inputs (Dollars in thousands) | Level 2 Inputs (Dollars in thousands) | Level 3 Inputs (Dollars in thousands) | Total Fair Value (Dollars in thousands) | | :---------------------------------------- | :------------- | :------------- | :------------- | :--------------- | | Debt securities available for sale: U.S. Treasury | $1,071,025 | — | — | $1,071,025 | | Debt securities available for sale: U.S. federal agencies | — | $7,501 | — | $7,501 | | Debt securities available for sale: Mortgage-backed securities | — | $12,570 | — | $12,570 | | Derivative assets | — | $16,144 | — | $16,144 | | Derivative liabilities | — | $14,582 | — | $14,582 | Nonrecurring Fair Value Assets (June 30, 2025) (Dollars in thousands) | Nonrecurring Fair Value Assets (June 30, 2025) | Total Fair Value (Level 3) (Dollars in thousands) | | :--------------------------------------------- | :------------------------- | | Equity securities | $7,851 | | Collateral dependent loans | $1,896 | | Repossessed assets | $788 | | Other real estate owned | $23,526 | [(11) DERIVATIVE FINANCIAL INSTRUMENTS](index=41&type=section&id=(11)%20DERIVATIVE%20FINANCIAL%20INSTRUMENTS) This note details the Company's use of oil and gas swaps and options to meet customer needs and manage price exposure, outlining their fair values, notional amounts, and credit exposure - The Company enters into offsetting oil and gas swaps and options contracts to accommodate customer needs and mitigate exposure to price fluctuations[108](index=108&type=chunk) Derivative Positions (June 30, 2025) (Dollars in thousands) | Derivative Position (June 30, 2025) | Notional Amount (thousands) | Estimated Fair Value (thousands) | | :---------------------------------- | :-------------------------- | :------------------------------- | | Oil Derivative assets | $13,258 | $13,258 | | Oil Derivative liabilities | ($12,644) | ($12,644) | | Gas/Natural Gas Liquids Derivative assets | $2,886 | $2,886 | | Gas/Natural Gas Liquids Derivative liabilities | ($1,938) | ($1,938) | | Total Fair Value (Derivative assets) | N/A | $16,144 | | Total Fair Value (Derivative liabilities) | N/A | ($14,582) | - The Company's net credit exposure relating to oil and gas swaps and options with bank counterparties was **$13,377 thousand** at June 30, 2025, up from **$8,074 thousand** at December 31, 2024[110](index=110&type=chunk) [(12) SEGMENT INFORMATION](index=42&type=section&id=(12)%20SEGMENT%20INFORMATION) This note provides financial results and selected data for the Company's six principal business units, including BancFirst metropolitan and community banks, Pegasus, Worthington, other financial services, and executive/operations/support, highlighting their contributions to overall performance - The Company operates through six principal business units: BancFirst metropolitan banks, BancFirst community banks, Pegasus, Worthington, other financial services, and executive, operations, support and eliminations[113](index=113&type=chunk) Income Before Taxes by Segment (Three Months Ended June 30, 2025) (Dollars in thousands) | Segment (Three Months Ended June 30, 2025) | Income before taxes (Dollars in thousands) | | :----------------------------------------- | :--------------------------------------- | | BancFirst Metropolitan Banks | $22,834 | | BancFirst Community Banks | $49,342 | | Pegasus | $7,469 | | Worthington | $2,182 | | Other Financial Services | $6,367 | | Executive, Operations, Support and Eliminations | ($8,476) | | Consolidated Total | $79,718 | Selected Financial Data by Segment (June 30, 2025) (Dollars in thousands) | Segment (June 30, 2025) | Loans held for investment (Dollars in thousands) | Total assets (Dollars in thousands) | Total deposits (Dollars in thousands) | | :----------------------------------------- | :--------------------------------------------- | :---------------------------------- | :------------------------------------ | | BancFirst Metropolitan Banks | $2,466,154 | $3,443,579 | $2,961,647 | | BancFirst Community Banks | $4,114,132 | $8,091,096 | $7,454,342 | | Pegasus | $887,498 | $1,487,269 | $1,265,357 | | Worthington | $479,897 | $619,458 | $530,347 | | Consolidated Total | $8,114,488 | $14,045,780 | $12,056,192 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=45&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial performance and condition, including forward-looking statements, a summary of key financial results, and detailed discussions of net interest income, credit quality, noninterest income and expense, income taxes, and balance sheet items [Forward Looking Statements](index=45&type=section&id=FORWARD%20LOOKING%20STATEMENTS) This section highlights that forward-looking statements are subject to various risks and uncertainties, including economic conditions, regulatory changes, interest rate fluctuations, and market dynamics, which could cause actual results to differ materially - Forward-looking statements are subject to numerous assumptions, risks, and uncertainties, including economic conditions, financial markets, interest rates, legislative and regulatory actions, and competition[118](index=118&type=chunk) - Key risk factors include changes in accounting policies, fiscal/monetary policy, regulatory environment, inflation, oil and gas prices, banking industry developments, deposit mix shifts, borrower financial performance, and technological changes[119](index=119&type=chunk) [Summary of Financial Performance](index=46&type=section&id=SUMMARY) The Company reported a strong second quarter and year-to-date performance with increased net income and diluted EPS, driven by higher net interest income and noninterest income. Total assets, loans, and deposits grew, while nonaccrual loans decreased, and net charge-offs increased due to a specific real estate loan Summary of Financial Performance (Dollars in millions) | Metric | Q2 2025 (Dollars in millions) | Q2 2024 (Dollars in millions) | YoY Change | | :----------------------------------- | :------ | :------ | :--------- | | Net income | $62.3 | $50.6 | +23.1% | | Diluted net income per common share | $1.85 | $1.51 | +22.5% | | Net interest income | $121.3 | $109.9 | +10.4% | | Provision for credit losses on loans | $1.2 | $3.4 | -64.7% | | Noninterest income | $48.0 | $43.9 | +9.3% | | Noninterest expense | $88.2 | $85.3 | +3.4% | - Total assets increased by **$491.5 million** to **$14.0 billion** at June 30, 2025, with loans growing by **$91.3 million** to **$8.1 billion** and deposits increasing by **$337.6 million** to **$12.1 billion**[125](index=125&type=chunk) - Nonaccrual loans decreased to **$49.9 million** (**0.61%** of total loans) at June 30, 2025, from **$57.984 million** (**0.72%**) at year-end 2024, while net charge-offs for Q2 2025 were **$4.7 million**, including **$3.7 million** from one real estate loan[126](index=126&type=chunk) [Results of Operations](index=47&type=section&id=RESULTS%20OF%20OPERATIONS) The Company's results of operations for the three and six months ended June 30, 2025, show strong growth in net interest income driven by higher loan volume and earning assets, a reduced provision for credit losses, and increased noninterest income from various sources. Noninterest expenses rose primarily due to salaries and employee benefits Key Operating Metrics (Dollars in thousands) | Metric | Q2 2025 (Dollars in thousands) | Q2 2024 (Dollars in thousands) | 6M 2025 (Dollars in thousands) | 6M 2024 (Dollars in thousands) | | :----------------------------------- | :------ | :------ | :------ | :------ | | 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 | | Total noninterest income | $48,048 | $43,944 | $96,942 | $88,844 | | Total noninterest expense | $88,199 | $85,316 | $180,378 | $168,095 | | 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 increased by **$11.4 million** (**10.3%**) for Q2 2025 and **$21.2 million** (**9.8%**) for 6M 2025, primarily due to higher loan volume and general growth in earning assets[136](index=136&type=chunk)[137](index=137&type=chunk) - Noninterest income for Q2 2025 increased by **$4.1 million**, driven by higher trust revenue, treasury income, sweep fees, insurance commissions, and other noninterest income, partially offset by losses on equity securities[140](index=140&type=chunk) - Noninterest expense increased by **$2.9 million** for Q2 2025 and **$12.3 million** for 6M 2025, mainly due to growth in salaries and employee benefits, occupancy expense, and net expense from other real estate owned[144](index=144&type=chunk)[145](index=145&type=chunk) [Financial Position](index=52&type=section&id=FINANCIAL%20POSITION) The Company's financial position at June 30, 2025, reflects growth in total assets, loans, and deposits. Liquidity remains strong, and capital ratios are well above regulatory requirements. Nonaccrual loans decreased, but OREO increased due to a specific foreclosure Key Financial Position Metrics (Dollars in thousands) | Metric | June 30, 2025 (Dollars in thousands) | December 31, 2024 (Dollars in thousands) | | :----------------------------------- | :----------------------------------- | :----------------------------------- | | Total assets | $14,045,780 | $13,554,314 | | Total loans (net of unearned interest) | $8,124,497 | $8,033,183 | | Total deposits | $12,056,192 | $11,718,546 | | Stockholders' equity | $1,728,038 | $1,621,187 | | Nonaccrual loans | $49,878 | $57,984 | | Other real estate owned and repossessed assets | $53,022 | $33,665 | | Nonaccrual loans to total loans | 0.61% | 0.72% | | Allowance for credit losses to total loans | 1.19% | 1.24% | - Total loans increased by **$91.3 million** (**1.1%**) from December 31, 2024, with commercial real estate contributing the largest increase of **$101.5 million**[155](index=155&type=chunk) - Liquidity is high, with cash and equivalents representing **28.5%** of total assets at June 30, 2025, up from **26.2%** at December 31, 2024[170](index=170&type=chunk) - Uninsured deposits totaled **$4.0 billion** at June 30, 2025, representing **32.8%** of total deposits, with existing and contingent liquidity sources equivalent to approximately **150%** of uninsured deposits[173](index=173&type=chunk) [Item 3. Quantitative and Qualitative Disclosure About Market Risk](index=57&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20About%20Market%20Risk) This section states that there have been no significant changes in the Company's market risk disclosures since its most recent annual report - There have been no significant changes in the Company's disclosures regarding market risk since December 31, 2024[180](index=180&type=chunk) [Item 4. Controls and Procedures](index=57&type=section&id=Item%204.%20Controls%20and%20Procedures) The Company's management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of June 30, 2025, and reported no material changes in internal control over financial reporting during the period - The Company's Chief Executive Officer, Chief Financial Officer, and Disclosure Committee evaluated and concluded that disclosure controls and procedures are effective as of June 30, 2025[181](index=181&type=chunk) - There have been no material changes in the Company's internal controls over financial reporting during the period covered by this report[182](index=182&type=chunk) [PART II – OTHER INFORMATION](index=58&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) This section provides additional information including legal proceedings, risk factors, equity sales, defaults, mine safety, other disclosures, and a list of exhibits [Item 1. Legal Proceedings](index=58&type=section&id=Item%201.%20Legal%20Proceedings) The Company is involved in various legal actions arising from its normal business activities but does not anticipate any material adverse effect on its consolidated financial statements - The Company is a defendant in various legal actions related to its normal business activities[184](index=184&type=chunk) - Management believes that any liability arising from these actions will not have a material adverse effect on the consolidated financial statements[184](index=184&type=chunk) [Item 1A. Risk Factors](index=58&type=section&id=Item%201A.%20Risk%20Factors) This section confirms that there have been no material changes to the risk factors previously disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 - 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[185](index=185&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=58&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Company reported no unregistered sales of equity securities during the period - There were no unregistered sales of equity securities during the period[186](index=186&type=chunk) [Item 3. Defaults Upon Senior Securities](index=58&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The Company reported no defaults upon senior securities during the period - There were no defaults upon senior securities during the period[187](index=187&type=chunk) [Item 4. Mine Safety Disclosures](index=58&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The Company reported no mine safety disclosures during the period - There were no mine safety disclosures during the period[188](index=188&type=chunk) [Item 5. Other Information](index=58&type=section&id=Item%205.%20Other%20Information) The Company reported no other information in this section - There was no other information to report in this section[189](index=189&type=chunk) [Item 6. Exhibits](index=59&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents, CEO/CFO certifications, and XBRL interactive data files - Exhibits include Amended and Restated By-Laws, Restated Certificate of Incorporation, CEO's and CFO's Certifications (pursuant to Rule 13a-14(a) and 18 U.S.C. Section 1350), and Inline XBRL documents[190](index=190&type=chunk) [Signatures](index=60&type=section&id=Signatures) This section contains the official signatures of the registrant's principal executive officer and principal financial officer, certifying the report - The report was signed by David Harlow, President and Chief Executive Officer, and Hannah Andrus, Executive Vice President and Chief Financial Officer, on August 5, 2025[193](index=193&type=chunk)

Core Viewpoint - BancFirst (BANF) is positioned as a strong investment opportunity due to its improving earnings outlook and analysts' increasing earnings estimates [1][2]. Earnings Estimates - Analysts are optimistic about BancFirst's earnings prospects, leading to higher estimates that are expected to positively impact the stock price [2]. - The consensus earnings estimate for the current quarter is $1.87 per share, reflecting a year-over-year increase of +6.9% [5]. - For the full year, the expected earnings are $7.22 per share, indicating a year-over-year change of +12.1% [6]. - Over the past month, the Zacks Consensus Estimate for BancFirst has increased by 10%, with two estimates moving higher and no negative revisions [5][6]. Zacks Rank - BancFirst currently holds a Zacks Rank 1 (Strong Buy), which is based on favorable estimate revisions and has a proven track record of outperforming the market [7]. - Stocks with a Zacks Rank 1 and 2 (Buy) have historically shown significant outperformance compared to the S&P 500 [7]. Stock Performance - BancFirst shares have appreciated by 6.4% over the past four weeks, indicating investor confidence in the company's earnings growth prospects [8].

[Second Quarter 2025 Earnings Highlights](index=1&type=section&id=1.%20Second%20Quarter%202025%20Earnings%20Highlights) BancFirst Corporation reported strong Q2 2025 earnings, with significant growth in net income and EPS, alongside balance sheet expansion and management insights [Financial Performance Overview](index=1&type=section&id=1.1.%20Financial%20Performance%20Overview) BancFirst Corporation reported strong Q2 2025 results with significant year-over-year increases in net income and diluted EPS, driven by net interest income and noninterest income growth Key Financial Performance (Q2 2025 vs Q2 2024): | Metric | Q2 2025 | Q2 2024 | Change ($ million) | % Change | | :-------------------------- | :------ | :------ | :----- | :------- | | Net Income | $62.3 million | $50.6 million | $11.7 million | **23.1%** | | Diluted EPS | $1.85 | $1.51 | $0.34 | **22.5%** | | Net Interest Income | $121.3 million | $109.9 million | $11.4 million | **10.4%** | | Net Interest Margin | 3.75% | 3.76% | -0.01% | -0.27% | | Provision for Credit Losses | $1.2 million | $3.4 million | -$2.2 million | **-64.7%** | | Noninterest Income | $48.0 million | $43.9 million | $4.1 million | **9.3%** | | Noninterest Expense | $88.2 million | $85.3 million | $2.9 million | **3.4%** | - Noninterest income growth was driven by increases in trust revenue, treasury income, sweep fees, insurance commissions, and other noninterest income, with the latter boosted by changes in cash surrender value of life insurance and gains on asset disposal, partially offset by equity security losses[3](index=3&type=chunk) - The increase in noninterest expenses was primarily due to a **$3.2 million** rise in salaries and employee benefits, an **$804,000** increase in occupancy expense, and a **$1.3 million** increase in net expense from other real estate owned[4](index=4&type=chunk) [Balance Sheet and Asset Quality Overview](index=1&type=section&id=1.2.%20Balance%20Sheet%20and%20Asset%20Quality%20Overview) The company's balance sheet expanded across assets, loans, and deposits, with improved asset quality despite increased net charge-offs from a specific real estate loan Key Balance Sheet & Asset Quality Data (June 30, 2025 vs December 31, 2024): | Metric | June 30, 2025 | December 31, 2024 | Change ($ million) | | :-------------------------------- | :------------ | :---------------- | :----- | | Total Assets | $14.0 billion | $13.5 billion | +$491.5 million | | Total Loans | $8.1 billion | $8.0 billion | +$91.3 million | | Total Deposits | $12.1 billion | $11.7 billion | +$337.6 million | | Total Stockholders' Equity | $1.7 billion | $1.6 billion | +$106.9 million | | Nonaccrual Loans to Total Loans | **0.61%** | 0.72% | -0.11% | | Allowance for Credit Losses to Total Loans | 1.19% | 1.24% | -0.05% | | Net Charge-offs (Q2) | **$4.7 million** | $0.999 million (Q2 2024) | +$3.7 million | - Net charge-offs for Q2 2025 included **$3.7 million** relating to one real estate loan that was taken into other real estate[6](index=6&type=chunk) [Management Commentary](index=1&type=section&id=1.3.%20Management%20Commentary) CEO David Harlow highlighted strong quarterly results, the upcoming American Bank of Oklahoma acquisition, and preparedness for potential Fed rate cuts - The quarter's results were impacted by one-time events, which had an approximate **$0.05 per diluted share** effect[7](index=7&type=chunk) - The company expects to close the American Bank of Oklahoma acquisition in the third quarter, adding Collinsville and Skiatook communities to its service area[7](index=7&type=chunk) - BancFirst is in a well-balanced position to handle potential Federal Reserve rate reductions in the latter half of the year, while maintaining a healthy loan loss reserve due to uncertainties in global trade policy and geopolitical risks[7](index=7&type=chunk) [Company Information](index=3&type=section&id=2.%20Company%20Information) This section details BancFirst Corporation's business operations, forward-looking statement disclaimers, and investor relations contact information [Business Description](index=3&type=section&id=2.1.%20Business%20Description) BancFirst Corporation is an Oklahoma-based financial services holding company operating three subsidiary banks across Oklahoma and Texas - BancFirst Corporation is an Oklahoma-based financial services holding company[8](index=8&type=chunk) - It operates three subsidiary banks: BancFirst (Oklahoma, **104 locations** in **59 communities**), Pegasus Bank (Texas, **3 locations** in Dallas Metroplex), and Worthington Bank (Texas, **3 locations** in Fort Worth Metroplex, **1 in Arlington**, **1 in Denton**)[8](index=8&type=chunk) [Forward-Looking Statements Disclaimer](index=3&type=section&id=2.2.%20Forward-Looking%20Statements%20Disclaimer) Forward-looking statements are subject to various risks and uncertainties, including economic conditions and regulatory changes, which may cause actual results to differ - Forward-looking statements relate to earnings, credit quality, corporate objectives, interest rates, and other financial and business matters[9](index=9&type=chunk) - These statements are subject to numerous assumptions, risks, and uncertainties, including economic conditions, financial markets, interest rates, legislative/regulatory actions, and competition[9](index=9&type=chunk) - Actual results may differ materially from forward-looking statements[9](index=9&type=chunk) [Investor Relations Contact](index=3&type=section&id=2.3.%20Investor%20Relations%20Contact) Contact information for the Chief Financial Officer and Chief Executive Officer is provided for investor inquiries - For additional information, contact Hannah Andrus, Chief Financial Officer at **(405) 218-4174**, or David Harlow, Chief Executive Officer at **(405) 270-1082**[10](index=10&type=chunk) [Summary Financial Information - Quarterly](index=4&type=section&id=3.%20Summary%20Financial%20Information%20-%20Quarterly) This section presents condensed income statements, per common share data, and performance ratios for quarterly periods [Condensed Income Statements](index=4&type=section&id=3.1.%20Condensed%20Income%20Statements) Condensed income statements show strong year-over-year growth in net interest income and net income for Q2 2025, with decreased provision for credit losses Condensed Income Statements (Dollars in thousands): | Metric | Q2 2025 ($ thousands) | Q1 2025 ($ thousands) | Q2 2024 ($ thousands) | YoY Change ($ thousands) | YoY Change (%) | QoQ Change ($ thousands) | QoQ Change (%) | | :-------------------------------- | :------ | :------ | :------ | :-------------- | :------------- | :-------------- | :------------- | | Net interest income | 121,256 | 115,949 | 109,896 | **11,360** | **10.34%** | 5,307 | 4.58% | | Provision for credit losses on loans | 1,239 | 1,461 | 3,358 | **(2,119)** | **-63.10%** | (222) | -15.19% | | Total noninterest income | 48,048 | 48,894 | 43,944 | **4,104** | **9.34%** | (846) | -1.73% | | Total noninterest expense | 88,199 | 92,179 | 85,316 | **2,883** | **3.38%** | (3,980) | -4.32% | | Net income | 62,347 | 56,112 | 50,641 | **11,706** | **23.12%** | 6,235 | 11.11% | [Per Common Share Data](index=4&type=section&id=3.2.%20Per%20Common%20Share%20Data) Diluted net income per common share increased significantly year-over-year and sequentially in Q2 2025, while cash dividends remained stable Per Common Share Data: | Metric | Q2 2025 ($) | Q1 2025 ($) | Q2 2024 ($) | YoY Change ($) | YoY Change (%) | QoQ Change ($) | QoQ Change (%) | | :---------------------- | :------ | :------ | :------ | :--------- | :------------- | :--------- | :------------- | | Net income-basic | **$1.87** | $1.69 | $1.53 | **$0.34** | **22.22%** | $0.18 | 10.65% | | Net income-diluted | **$1.85** | $1.66 | $1.51 | **$0.34** | **22.52%** | $0.19 | 11.45% | | Cash dividends declared | $0.46 | $0.46 | $0.43 | $0.03 | 6.98% | $0.00 | 0.00% | [Performance Ratios](index=4&type=section&id=3.3.%20Performance%20Ratios) Key performance ratios, including return on assets, return on equity, and efficiency ratio, improved year-over-year and sequentially in Q2 2025 Performance Ratios: | Metric | Q2 2025 (%) | Q1 2025 (%) | Q2 2024 (%) | YoY Change (pp) | QoQ Change (pp) | | :-------------------------- | :------ | :------ | :------ | :-------------- | :-------------- | | Return on average assets | **1.79%** | 1.66% | 1.61% | **0.18** | 0.13 | | Return on average stockholders' equity | **14.74%** | 13.85% | 13.72% | **1.02** | 0.89 | | Net interest margin | 3.75% | 3.70% | 3.76% | -0.01 | 0.05 | | Efficiency ratio | **52.10%** | 55.92% | 55.46% | **-3.36** | -3.82 | [Summary Financial Information - Six Months Ended](index=6&type=section&id=4.%20Summary%20Financial%20Information%20-%20Six%20Months%20Ended) This section provides condensed income statements, per common share data, and performance ratios for the six months ended June 30 [Condensed Income Statements](index=6&type=section&id=4.1.%20Condensed%20Income%20Statements) For the six months ended June 30, 2025, net interest income, noninterest income, and net income increased significantly year-over-year Condensed Income Statements (Six Months Ended June 30, Dollars in thousands): | Metric | 6M 2025 ($ thousands) | 6M 2024 ($ thousands) | YoY Change ($ thousands) | YoY Change (%) | | :-------------------------------- | :------ | :------ | :-------------- | :------------- | | Net interest income | 237,205 | 216,000 | **21,205** | **9.82%** | | Provision for credit losses on loans | 2,700 | 7,373 | **(4,673)** | **-63.38%** | | Total noninterest income | 96,942 | 88,844 | **8,098** | **9.12%** | | Total noninterest expense | 180,378 | 168,095 | **12,283** | **7.31%** | | Net income | 118,459 | 100,975 | **17,484** | **17.32%** | [Per Common Share Data](index=6&type=section&id=4.2.%20Per%20Common%20Share%20Data) Diluted net income per common share for the first six months of 2025 increased by 16.6% year-over-year, with higher cash dividends declared Per Common Share Data (Six Months Ended June 30): | Metric | 6M 2025 ($) | 6M 2024 ($) | YoY Change ($) | YoY Change (%) | | :---------------------- | :------ | :------ | :--------- | :------------- | | Net income-basic | **$3.56** | $3.06 | **$0.50** | **16.34%** | | Net income-diluted | **$3.51** | $3.01 | **$0.50** | **16.61%** | | Cash dividends declared | $0.92 | $0.86 | $0.06 | 6.98% | [Performance Ratios](index=6&type=section&id=4.3.%20Performance%20Ratios) Performance ratios for the six months ended June 30, 2025, showed improvements in return on assets, return on equity, and efficiency ratio Performance Ratios (Six Months Ended June 30): | Metric | 6M 2025 (%) | 6M 2024 (%) | YoY Change (pp) | | :-------------------------- | :------ | :------ | :-------------- | | Return on average assets | **1.73%** | 1.62% | **0.11** | | Return on average stockholders' equity | **14.31%** | 13.84% | **0.47** | | Net interest margin | 3.72% | 3.73% | -0.01 | | Efficiency ratio | **53.98%** | 55.14% | **-1.16** | [Balance Sheet and Asset Quality Data](index=5&type=section&id=5.%20Balance%20Sheet%20and%20Asset%20Quality%20Data) This section presents detailed balance sheet data, balance sheet ratios, and asset quality metrics, including a non-GAAP reconciliation [Balance Sheet Data](index=5&type=section&id=5.1.%20Balance%20Sheet%20Data) BancFirst Corporation's balance sheet at June 30, 2025, reflects consistent growth across total assets, loans, deposits, and stockholders' equity Key Balance Sheet Data (Dollars in thousands): | Metric | Q2 2025 ($ thousands) | Q1 2025 ($ thousands) | Q2 2024 ($ thousands) | YoY Change ($ thousands) | YoY Change (%) | QoQ Change ($ thousands) | QoQ Change (%) | | :-------------------------- | :-------- | :-------- | :-------- | :-------------- | :------------- | :-------------- | :------------- | | Total assets | 14,045,780 | 14,038,055 | 12,737,318 | **1,308,462** | **10.27%** | 7,725 | 0.05% | | Total loans | 8,124,497 | 8,102,810 | 8,054,856 | **69,641** | **0.86%** | 21,687 | 0.27% | | Total deposits | 12,056,192 | 12,126,750 | 11,015,602 | **1,040,590** | **9.45%** | (70,558) | -0.58% | | Stockholders' equity | 1,728,038 | 1,672,827 | 1,512,492 | **215,546** | **14.25%** | 55,211 | 3.30% | [Balance Sheet Ratios](index=5&type=section&id=5.2.%20Balance%20Sheet%20Ratios) Balance sheet ratios indicate a decrease in average loans to deposits year-over-year, with stable average earning assets to total assets Balance Sheet Ratios: | Metric | Q2 2025 (%) | Q1 2025 (%) | Q2 2024 (%) | YoY Change (pp) | QoQ Change (pp) | | :-------------------------------- | :------ | :------ | :------ | :-------------- | :-------------- | | Average loans to deposits | **67.11%** | 68.08% | 72.25% | **-5.14** | -0.97 | | Average earning assets to total assets | 92.97% | 93.10% | 92.77% | 0.20 | -0.13 | | Average stockholders' equity to average assets | **12.14%** | 12.00% | 11.71% | **0.43** | 0.14 | [Asset Quality Data](index=5&type=section&id=5.3.%20Asset%20Quality%20Data) Asset quality metrics show a decrease in nonaccrual loans relative to total loans, but an increase in net charge-offs to average loans Asset Quality Data: | Metric | Q2 2025 (%) | Q1 2025 (%) | Q2 2024 (%) | YoY Change (pp) | QoQ Change (pp) | | :-------------------------- | :------ | :------ | :------ | :-------------- | :-------------- | | Nonaccrual loans to total loans | **0.61%** | 0.70% | 0.55% | **0.06** | -0.09 | | Allowance to total loans | 1.19% | 1.24% | 1.24% | -0.05 | -0.05 | | Allowance to nonaccrual loans | **194.45%** | 178.20% | 226.32% | **-31.87** | **16.25** | | Net charge-offs to average loans | **0.05%** | 0.01% | 0.01% | **0.04** | **0.04** | - Government Agencies guarantee approximately **$9.5 million** of nonaccrual loans at June 30, 2025[16](index=16&type=chunk) [Reconciliation of Tangible Book Value Per Common Share (Non-GAAP)](index=5&type=section&id=5.4.%20Reconciliation%20of%20Tangible%20Book%20Value%20Per%20Common%20Share%20(Non-GAAP)) Tangible book value per common share, a non-GAAP measure, demonstrated consistent growth from Q2 2024 to Q2 2025 Tangible Book Value Per Common Share (Non-GAAP): | Metric | Q2 2025 ($) | Q1 2025 ($) | Q2 2024 ($) | YoY Change ($) | YoY Change (%) | QoQ Change ($) | QoQ Change (%) | | :-------------------------------------- | :------ | :------ | :------ | :--------- | :------------- | :--------- | :------------- | | Tangible book value per common share | **$46.12** | $44.47 | $39.83 | **$6.29** | **15.79%** | $1.65 | 3.71% | - Tangible book value per common share is calculated as stockholders' equity less goodwill and intangible assets, net, divided by common shares outstanding[15](index=15&type=chunk) - This non-GAAP measure is considered a critical metric for analyzing the company's financial condition and capital strength, but it should not be considered a substitute for GAAP operating results[15](index=15&type=chunk) [Consolidated Average Balance Sheets and Interest Margin Analysis](index=7&type=section&id=6.%20Consolidated%20Average%20Balance%20Sheets%20and%20Interest%20Margin%20Analysis) This section provides a detailed analysis of average balance sheets and interest margins for both the three and six months ended June 30, 2025 [Three Months Ended June 30, 2025](index=7&type=section&id=6.1.%20Three%20Months%20Ended%20June%2030,%202025) For Q2 2025, BancFirst reported average earning assets of $12.99 billion with a 5.82% yield, resulting in a 3.75% net interest margin Key Interest Margin Data (Q2 2025, Dollars in thousands): | Metric | Average Balance ($ thousands) | Interest Income/Expense ($ thousands) | Yield/Rate (%) | | :-------------------------------- | :-------------- | :---------------------- | :--------- | | Loans | 8,064,423 | 139,532 | **6.94%** | | Total earning assets | **12,990,848** | 188,627 | **5.82%** | | Money market and interest-bearing checking deposits | 5,322,205 | 40,562 | 3.06% | | Total interest bearing liabilities | **8,164,057** | 67,171 | **3.30%** | | Net interest income | | **121,456** | | | Net interest spread | | | **2.52%** | | Net interest margin | | | **3.75%** | [Six Months Ended June 30, 2025](index=7&type=section&id=6.2.%20Six%20Months%20Ended%20June%2030,%202025) For the six months ended June 30, 2025, average earning assets were $12.87 billion with a 5.82% yield, leading to a 3.72% net interest margin Key Interest Margin Data (Six Months Ended June 30, 2025, Dollars in thousands): | Metric | Average Balance ($ thousands) | Interest Income/Expense ($ thousands) | Yield/Rate (%) | | :-------------------------------- | :-------------- | :---------------------- | :--------- | | Loans | 8,057,657 | 276,710 | **6.93%** | | Total earning assets | **12,866,505** | 371,301 | **5.82%** | | Money market and interest-bearing checking deposits | 5,312,449 | 81,283 | 3.09% | | Total interest bearing liabilities | **8,093,644** | 133,698 | **3.33%** | | Net interest income | | **237,603** | | | Net interest spread | | | **2.49%** | | Net interest margin | | | **3.72%** |

Core Viewpoint - BancFirst (BANF) is expected to report a year-over-year increase in earnings driven by higher revenues, with the consensus outlook being crucial for assessing the company's earnings picture [1][3]. Earnings Expectations - The consensus EPS estimate for BancFirst is $1.67 per share, reflecting a year-over-year increase of +10.6% [3]. - Expected revenues for the quarter are $164.5 million, which is a 6.9% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' assessments [4]. - A positive Earnings ESP of +1.50% suggests that analysts have recently become more optimistic about BancFirst's earnings prospects [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [10]. - BancFirst currently holds a Zacks Rank of 2, indicating a high likelihood of beating the consensus EPS estimate [12]. Historical Performance - BancFirst has consistently beaten consensus EPS estimates, achieving this in the last four quarters [14]. - In the last reported quarter, BancFirst exceeded expectations by delivering earnings of $1.67 per share against an expected $1.58, resulting in a surprise of +5.70% [13]. Conclusion - BancFirst is positioned as a compelling candidate for an earnings beat, but investors should consider other factors influencing stock performance ahead of the earnings release [17].