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.

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 October ~~30, 2020~~29, 2021 there were ~~32,682,269~~32,572,217 shares of the registrant’s Common Stock outstanding.

The accompanying Notes are an integral part of these consolidated financial statements.

leases recognized by a lessor in accordance with Topic 842 on leases. In addition, ASC 326 made changes to the accounting for purchased loans and securities with credit deterioration and available-for-sale debt securities.

The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Operating results for periods from January 1, 2020 are presented in accordance with ASC 326 while prior period amounts continue to be reported in accordance with previously applicable standards and the accounting policies described in our 2019 Form 10-K. The Company recorded a net increase to retained earnings of $2.3 million, net of tax of $925,000, as of January 1, 2020 for the cumulative effect of adopting ASC 326, and the impact on our results of operations and cash flows was not material.

The Company adopted ASC 326 using the prospective transition approach for financial assets purchased with credit deterioration (PCD) that were previously classified as purchased credit impaired (PCI) and accounted for under ASC 310-30. In accordance with the standard, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. On January 1, 2020, the amortized cost basis of the PCD assets was adjusted to reflect the addition of approximately $1.2 million to the allowance for credit losses.

The Company has not recorded an allowance for credit losses against its available-for-sale securities, as the credit risk is not material. The following table illustrates the impact of ASC 326 on the allowance for credit losses on the Company’s loans as of January 1, 2020.

The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. In order to estimate expected losses using historical loss information, the Company elected to utilize a methodology known as vintage loss analysis for substantially all of our loan portfolio. Vintage loss analysis measures impairment based on the age of the accounts and the historical asset performance of assets with similar risk characteristics. Vintage loss analysis accounts for expected losses by allowing the Company to calculate the cumulative loss rates of a given loan pool and in so doing, determine the loan pool’s lifetime expected loss experience. This includes a reasonable approximation of probable and estimable future losses determined by applying historical net charge off information to forward looking qualitative and environmental factors. First, the Company determined the appropriate type of financial assets that share similar risk characteristics, and then the Company developed a cumulative loss curve for the applicable financial assets based on historical data using different “vintages” analyzed by year of origination. This is done by dividing each year’s net charge-offs by the original principal balance. The respective vintage’s original principal balance remains the denominator in each annual calculation, as it references the specific vintage’s original balance. The loss experience of this original balance is tracked annually and summed over the life of the loan for each separate loan pool leaving a cumulative, life of credit loss rate based on historic averages weighted towards more recent loss experience. In addition to life of credit loss data, primary drivers like macroeconomic indicators of qualitative factors are used as adjustments to the expected loss calculation to reach a forecast supported by both quantitative and qualitative data points. The intent is to express the impact of changes in external factors while incorporating analysis of where the loan pool is in its loss history.

Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not included in the collective evaluation. The Company has made the accounting policy election to use the fair value of the collateral to measure expected credit losses on collateral-dependent financial assets. When management 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 connection with the adoption of ASC 326, the Company revised certain accounting policies and implemented accounting policy elections. The revised accounting policies are described below.~~

~~Loans~~: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost. Amortized cost is the principal balance outstanding, net of purchase premiums and discounts. Accrued interest receivable totaled $28.7 million at September 30, 2020 and $27.4 million at December 31, 2019 and was reported in accrued interest receivable and other assets on the consolidated balance sheets. ~~The Company has made the accounting policy election to exclude accrued interest receivable on loans from the estimate of credit losses.~~ ~~Interest income is accrued on the unpaid principal balance using the simple-interest method on the daily balances of the principal amounts outstanding.~~

Interest income on consumer and commercial loans is discontinued and placed on nonaccrual status at the time the loan is 90 days delinquent unless the loan is well secured and in process of collection. Consumer loans are charged off at 180 days past due and commercial loans are charged off to the extent principal or interest is deemed uncollectible. Past-due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful.

All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Under the cost-recovery method, interest income is not recognized until the loan balance is reduced to zero. Under the cash-basis method, interest income is recorded when the payment is received in cash. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Troubled debt restructurings are loans on which, due to the borrower’s financial difficulties, the Company has granted a concession that the Company would not otherwise consider for borrowers of similar credit quality. This may include a transfer of real estate or other assets from the borrower, a modification of loan terms, or a combination of the two. Modifications of terms that could potentially qualify as a restructuring include reduction of contractual interest rate, extension of the maturity date at a contractual interest rate lower than the current rate for new debt with similar risk, and a reduction of the face amount of debt or forgiveness of either principal or accrued interest. A loan continues to qualify as restructured until a consistent payment history or change in the borrower’s financial condition has been evidenced, generally for no less than twelve months. If the restructuring agreement specifies an interest rate at the time of the restructuring that is greater than or equal to the rate that the Company is willing to accept for a new extension of credit with comparable risk, then the loan is no longer considered a restructured loan if it is in compliance with the modified terms in calendar years after the year of restructure.

On August 15, 2019 the Company acquired Pegasus Bank, a Texas state-charted bank with three banking locations in Dallas, Texas. This acquisition is disclosed in Note (2) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.

The following table summarizes the amortized cost and estimated fair values of debt securities available for sale:

(1) Primarily consists of FHLMC, FNMA, GNMA and mortgage backed securities through U.S. agencies.

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:

(4) LOANS HELD FOR INVESTMENT AND ALLOWANCE FOR CREDIT LOSSES ON LOANS

~~(4)~~

~~LOANS HELD FOR INVESTMENT AND ALLOWANCE FOR CREDIT LOSSES ON LOANS~~

~~In connection with our adoption of~~ ~~ASC 326, changes were made to our primary portfolio segments to align with the methodology applied in determining the allowance under CECL.~~ Loans held for investment are summarized by portfolio segment as follows:


	September 30, 2020		December 31, 2019		September 30, 2021		December 31, 2020
	Amount		Amount		Amount		Amount
	(Dollars in thousands)				(Dollars in thousands)
BancFirst
Real estate:
Commercial real estate owner occupied	$	648,972	$	621,188	$	653,359	$	641,987
Commercial real estate non-owner occupied		974,308		851,200		963,544		971,158
Construction and development < 60 months		229,116		287,138		302,075		229,615
Construction residential real estate < 60 months		205,543		189,480		227,294		206,195
Residential real estate first lien		853,654		834,849		877,160		853,316
Residential real estate all other		175,370		187,647		158,145		168,081
Farmland		251,410		246,988		270,215		252,958
Commercial and agricultural non-real estate		1,375,246		1,499,404		1,065,973		1,159,810
Consumer non-real estate		349,338		359,529		383,878		355,405
Oil and gas						118,444		179,355
Other loans (2)		1,024,539		154,015		378,161		822,078
Pegasus Bank		524,597		430,705		618,688		554,548
Total (1)	$	6,612,093	$	5,662,143	$	6,016,936	$	6,394,506
(1) Excludes accrued interest receivable of $28.7 million at September 30, 2020 and $27.4 million at December 31, 2019, that is recorded in accrued interest receivable and other assets.
(2) Includes PPP loans held for investment of $830.3 million, net of unamortized processing fees of $22.5 million at September 30, 2020.
(1) Excludes accrued interest receivable of $21.2 million at September 30, 2021 and $26.0 million at December 31, 2020, that is recorded in accrued interest receivable and other assets.					(1) Excludes accrued interest receivable of $21.2 million at September 30, 2021 and $26.0 million at December 31, 2020, that is recorded in accrued interest receivable and other assets.
(2) Includes PPP loans held for investment of $201.2 million, net of unamortized processing fees of $6.7 million at September 30, 2021 and $652.7 million, net of unamortized processing fees of $14.5 million at December 31, 2020.					(2) Includes PPP loans held for investment of $201.2 million, net of unamortized processing fees of $6.7 million at September 30, 2021 and $652.7 million, net of unamortized processing fees of $14.5 million at December 31, 2020.

Other loans. Other loans consist of loans approved by the Small Business Administration (“SBA”), which include loans funded through the Paycheck Protection Program (“PPP”). Since PPP loans are fully guaranteed by the SBA, there is no expected credit loss

related to these loans. In April 2020, the Company began originating loans to qualified small businesses under the PPP administered by the SBA. The Company had processing fees, which were recognized as interest income related to the PPP loans totaling $10.0 million and $3.8 million during the three months ended September 30, 2021 and 2020, respectively and $31.7 million and $7.5 million during the nine months ended September 30, 2021 and 2020, respectively.

BancFirst’s loans are mostly to customers within Oklahoma and approximately ~~50%~~57% of the 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 securities. The Company’s interest in collateral is secured through filing mortgages and liens, and in some cases, by possession of the collateral.

~~BancFirst’s~~Pegasus Bank’s loans are mostly to customers within Texas and approximately $339 million or 55% of the loans are secured by real estate at September 30, 2021. Pegasus Bank’s commercial and agricultural non-real estate loans were approximately $257 million at September 30, 2021 and approximately $262 million at December 31, 2020.

BancFirst and Pegasus Bank’s commercial and agricultural non-real estate and oil and gas loan ~~category includes~~categories include upstream and midstream energy loans, and loans to companies that provide ancillary services to the energy industry, such as transportation, wellsite preparation contractors and equipment manufacturers. The balance of upstream energy loans was approximately $219 million at September 30, 2020 and approximately $189 million at December 31, 2019. The balance of midstream energy loans was approximately $47 million at September 30, 2020 and approximately $41 million at December 31, 2019. The balance of the ancillary services energy loans was approximately $80 million at September 30, 2020 and approximately $90 million at December 31, 2019.

~~Pegasus Bank’s~~Energy loans are mostly to customers within Texas and approximately $266 million or 50% of the loans are secured by real estate at September 30, 2020. Pegasus Bank’s commercial and agricultural non-real estate loan were approximately $242 million at September 30, 2020 and approximately $172 million at December 31, 2019. Pegasus Bank’s commercial and agricultural non-real estate loan category includes upstream energy loans and loans to companies that provide ancillary services to the energy industry, suchsummarized as transportation, preparation contractors and equipment manufacturers. The balance of upstream energy loans was approximately $102 million at September 30, 2020 and approximately $57 million at December 31, 2019. The balance of the ancillary services energy loans was approximately $9 million at September 30, 2020 and approximately $7 million at December 31, 2019.follows:


	September 30, 2021		December 31, 2020
	Amount		Amount
	(Dollars in thousands)
BancFirst energy loans
Upstream	$	129,838	$	190,788
Midstream		26,317		49,734
Ancillary services		66,294		59,410
Pegasus Bank energy loans
Upstream		107,429		107,103
Midstream		8,797		11,047
Ancillary services		29,928		12,503
Total	$	368,603	$	430,585

As of September 30, 2020, the Company had $830.3 million in PPP loans held for investment, net of unamortized processing fees of $22.5 million, and approximately $1.4 million of PPP loans held for sale. Through September 30, 2020, $7.6 million of processing fees were recognized as interest income.

Accounting policies related to appraisals, and charge-offs are disclosed in Note (1) to the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2019.~~2020.

Troubled Debt Restructurings, Other Real Estate Owned and Repossessed Assets and Held for Sale Assets

The following is a summary of troubled debt restructurings and other real estate owned and repossessed assets:


	September 30,		December 31,		September 30,		December 31,
	2020		2019		2021		2020
	(Dollars in thousands)				(Dollars in thousands)
Troubled debt restructurings	$	2,837	$	18,010	$	7,073	$	7,784
Other real estate owned and repossessed assets	$	4,939	$	6,073	$	39,060	$	32,480

The Company charges interest on principal balances outstanding on troubled debt restructurings during deferral periods. The current and future financial effects of the recorded balance of loans considered to be troubled debt restructurings were not considered to be material.

AtDuring the nine months ended September 30, ~~2020,~~2021, the ~~Company’s principal subsidiary bank, BancFirst, had~~Company completed the move to its new corporate headquarters and transferred approximately ~~$21.5~~$2.4 million from premises and equipment related to its previous headquarters to other real estate owned.

During the nine months ended September 30, 2021, the Company sold property held in other real estate owned for a total gain of $245,000, compared to a total gain of $2.3 million in ~~loans at its Hugo, Oklahoma branch that it has entered into an agreement to sell to AmeriState Bank in Atoka, Oklahoma. Accordingly, as of~~the nine months ended September 30, ~~2020, the Company has transferred $21.5 million from loans held for investment (net of unearned interest) to loans held for sale.~~2020.

Nonaccrual loans

Had nonaccrual loans performed in accordance with their original contractual terms, the Company would have recognized additional interest income of approximately ~~$2.1~~$1.7 million for the nine months ended September 30, ~~2020~~2021 and approximately ~~$1.4~~$2.1 million for the nine months ended September 30, ~~2019.~~2020.

~~Approximately $8.4 million of nonaccrual~~9

Nonaccrual loans ~~are~~ guaranteed by government ~~agencies.~~agencies totaled approximately $3.1 million at September 30, 2021 and approximately $7.8 million at December 31, 2020.

The following table is a summary of amounts included in nonaccrual loans, segregated by portfolio segment. ~~Residential real estate refers to one-to-four family real estate.~~


	September 30, 2020		September 30, 2021		December 31, 2020
	(Dollars in thousands)		(Dollars in thousands)
BancFirst
Real estate:
Commercial real estate owner occupied	$	2,447	$	2,332	$	1,404
Commercial real estate non-owner occupied		20,476		492		4,719
Construction and development < 60 months		115		83		95
Construction residential real estate < 60 months		—		—		—
Residential real estate first lien		4,131		3,167		3,615
Residential real estate all other		1,487		1,184		1,362
Farmland		10,517		5,561		7,901
Commercial and agricultural non-real estate		37,554		11,048		12,782
Consumer non-real estate		363		226		268
Oil and gas				—		—
Other loans		5,295		2,514		5,399
Pegasus Bank		—		—		—
Total	$	82,385	$	26,607	$	37,545

	December 31, 2019
	(Dollars in thousands)
BancFirst
Real estate:
Non-residential real estate owner occupied	$	2,275
Non-residential real estate other		1,815
Residential real estate permanent mortgage		1,206
Residential real estate all other		3,060
Non-consumer non-real estate		2,915
Consumer non-real estate		264
Other loans		1,083
Acquired loans		4,496
Pegasus Bank		851
Total	$	17,965

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 table presents an age analysis of our 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		Age Analysis of Past Due Loans
	(Dollars in thousands)														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
As of September 30, 2020
															(Dollars in thousands)
As of September 30, 2021
BancFirst
Real estate:
Commercial real estate owner occupied	$	509	$	461	$	2,038	$	3,008	$	645,964	$	648,972	$	78	$	1,086	$	—	$	968	$	2,054	$	651,305	$	653,359	$	223
Commercial real estate non-owner occupied		248		38		35		321		973,987		974,308		35		109		—		75		184		963,360		963,544		—
Construction and development < 60 months		179		—		1,605		1,784		227,332		229,116		1,605		114		—		—		114		301,961		302,075		—
Construction residential real estate < 60 months		203		—		406		609		204,934		205,543		406		—		—		—		0		227,294		227,294		—
Residential real estate first lien		4,326		1,292		3,310		8,928		844,726		853,654		651		3,832		1,213		2,623		7,668		869,492		877,160		1,268
Residential real estate all other		1,177		65		942		2,184		173,186		175,370		217		728		128		1,465		2,321		155,824		158,145		386
Farmland		5,940		338		3,256		9,534		241,876		251,410		384		626		0		3,459		4,085		266,130		270,215		224
Commercial and agricultural non-real estate		5,436		10,661		23,273		39,370		1,335,876		1,375,246		2,681		1,052		2,026		5,114		8,192		1,057,781		1,065,973		639
Consumer non-real estate		1,996		519		527		3,042		346,296		349,338		288		1,098		379		270		1,747		382,131		383,878		221
Oil and gas																—		—		—		—		118,444		118,444		—
Other loans		199		250		5,232		5,681		1,018,858		1,024,539		67		5,842		733		3,546		10,121		368,040		378,161		2,225
Pegasus Bank		—		—		—		—		524,597		524,597		—		—		—		—		—		618,688		618,688		—
Total	$	20,213	$	13,624	$	40,624	$	74,461	$	6,537,632	$	6,612,093	$	6,412	$	14,487	$	4,479	$	17,520	$	36,486	$	5,980,450	$	6,016,936	$	5,186

As of December 31, 2019
As of December 31, 2020
BancFirst
Real estate:
Non-residential real estate owner occupied	$	1,600	$	967	$	5,159	$	7,726	$	699,690	$	707,416	$	3,799
Non-residential real estate other		971		—		1,228		2,199		1,134,976		1,137,175		—
Residential real estate permanent mortgage		4,705		973		2,215		7,893		332,679		340,572		1,660
Residential real estate other		4,496		1,028		2,541		8,065		912,767		920,832		549
Non-consumer non-real estate		2,290		1,446		1,763		5,499		1,448,894		1,454,393		354
Consumer other		2,829		858		592		4,279		358,075		362,354		491
Commercial real estate owner occupied															$	1,096	$	108	$	1,164	$	2,368	$	639,619	$	641,987	$	—
Commercial real estate non-owner occupied																323		—		34		357		970,801		971,158		35
Construction and development < 60 months																511		86		—		597		229,018		229,615		—
Construction residential real estate < 60 months																1,106		—		282		1,388		204,807		206,195		282
Residential real estate first lien																5,428		1,463		2,978		9,869		843,447		853,316		945
Residential real estate all other																520		55		1,606		2,181		165,900		168,081		384
Farmland																1,297		344		6,223		7,864		245,094		252,958		135
Commercial and agricultural non-real estate																2,788		1,794		4,345		8,927		1,150,883		1,159,810		465
Consumer non-real estate																2,154		501		534		3,189		352,216		355,405		386
Oil and gas																—		—		—		—		179,355		179,355		—
Other loans		1,670		8		4,613		6,291		147,724		154,015		4,426		951		1,223		6,618		8,792		813,286		822,078		2,170
Acquired loans		2,167		1,376		3,447		6,990		147,691		154,681		555
Pegasus Bank		—		—		851		851		429,854		430,705		—		—		—		—		—		554,548		554,548		—
Total	$	20,728	$	6,656	$	22,409	$	49,793	$	5,612,350	$	5,662,143	$	11,834	$	16,174	$	5,574	$	23,784	$	45,532	$	6,348,974	$	6,394,506	$	4,802

Due to the impacts of the COVID-19 pandemic, the Company ~~has~~had approximately ~~$104.5~~$58.4 million in modified loans as of September 30, 2021 and $81.7 million in modified loans as of December 31, 2020, most of which ~~are~~were secured by commercial real ~~estate, as of September 30, 2020.~~estate. These modifications were undertaken in response to Section 4013 of the CARES Act and the regulatory intent outlined in the Interagency Statement on Loan Modifications by Financial Institutions Working with Customers Affected by the Coronavirus and to provide businesses financial flexibility until the economy has time to recover to a more normal level of activity. However, these modifications, which typically involve payment modifications and forbearance, also have the effect of delaying recognition of loans that may ultimately be permanently impaired. ~~Consequently, it is reasonable to expect that when temporary regulatory accounting relief and payment modifications cease, there could be a marked increase in credit impairment and restructured loans.~~ The timing and extent of such consequences are difficult to ascertain at this time and are dependent on the duration of the COVID-19 pandemic, the level and success of the government’s economic stimulus, and further regulatory guidance. These modified loans are included in ~~current loans~~Current Loans in the table above.

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. 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 our gross loans held for investment by year of origination and internally assigned credit grades as of December 31, 2020, are disclosed in Note (5) to the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2019.~~2020.

The Company’s revolving loans that are converted to term loans are not material and therefore have not been presented.

The following table summarizes our gross loans held for investment by year of origination and internally assigned credit ~~grades:~~grades as of September 30, 2021:

	Term Loans Amortized Cost Basis by Origination Year
	2020	2019	2018	2017	2016	Prior	Revolving Loans Amortized Cost Basis	Total	Term Loans Amortized Cost Basis by Origination Year
	(Dollars in thousands)								2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
As of September 30, 2020
									(Dollars in thousands)
As of September 30, 2021
BancFirst
Commercial real estate owner occupied
Grade 1	$119,516	$109,276	$77,708	$52,686	$39,161	$97,123	$11,040	$506,510	$	89,910	$	130,040	$	78,492	$	50,380	$	34,793	$	98,825	$	11,514	$	493,954
Grade 2	35,152	28,126	12,584	9,588	12,940	27,302	3,957	129,649		24,092		38,773		22,069		9,884		9,466		38,454		7,977		150,715
Grade 3	448	3,990	345	1,239	1,324	2,823	85	10,254		0		4,096		129		264		471		1,374		—		6,334
Grade 4	44	75	1,118	—	388	467	467	2,559		337		—		911		452		—		331		325		2,356
Total commercial real estate owner occupied loans	155,160	141,467	91,755	63,513	53,813	127,715	15,549	648,972		114,339		172,909		101,601		60,980		44,730		138,984		19,816		653,359
Commercial real estate non-owner occupied
Grade 1	203,748	170,966	93,283	81,087	86,160	97,595	12,388	745,227		124,690		210,442		139,681		58,198		36,899		130,688		9,475		710,073
Grade 2	43,767	51,241	26,932	10,397	8,930	51,047	3,917	196,231		42,653		54,748		44,156		34,292		18,326		41,774		5,150		241,099
Grade 3	1,126	3,087	7,107	555	41	296	70	12,282		7,387		—		3,301		135		237		642		—		11,702
Grade 4	20,477	91	—	—	—	—	—	20,568		417		—		49		35		—		169		—		670
Total commercial real estate non-owner occupied loans	269,118	225,385	127,322	92,039	95,131	148,938	16,375	974,308		175,147		265,190		187,187		92,660		55,462		173,273		14,625		963,544
Construction and development < 60 months
Grade 1	98,335	67,064	15,893	4,877	1,998	2,493	12,078	202,738		123,070		37,650		64,046		11,080		2,081		2,775		13,624		254,326
Grade 2	9,837	8,828	1,637	835	167	551	350	22,205		16,597		9,714		13,590		2,099		1,782		600		2,004		46,386
Grade 3	4,050	—	9	—	—	—	—	4,059		1,273		0		0		7		—		—		—		1,280
Grade 4	—	68	9	23	—	—	—	100		—		—		58		7		18		—		—		83
Grade 5	14	—	—	—	—	—	—	14
Total construction and development < 60 months	112,236	75,960	17,548	5,735	2,165	3,044	12,428	229,116		140,940		47,364		77,694		13,193		3,881		3,375		15,628		302,075
Construction residential real estate < 60 months
Grade 1	136,683	30,650	69	22	36	180	6,047	173,687		156,524		38,426		46		—		19		29		222		195,266
Grade 2	22,814	6,202	113	—	—	475	285	29,889		21,383		9,425		—		107		—		431		—		31,346
Grade 3	1,848	119	—	—	—	—	—	1,967		547		135		—		—		—		—		—		682
Total construction residential real estate < 60 months	161,345	36,971	182	22	36	655	6,332	205,543		178,454		47,986		46		107		19		460		222		227,294
Residential real estate first lien
Grade 1	193,583	152,017	87,058	68,286	52,044	151,406	—	704,394		193,151		168,628		100,936		64,930		47,968		141,503		—		717,116
Grade 2	21,833	24,877	22,230	12,256	12,252	34,614	—	128,062		33,765		25,873		16,379		15,931		9,710		40,834		—		142,492
Grade 3	2,623	1,986	1,511	1,991	1,902	5,816	—	15,829		942		1,523		2,375		2,044		1,350		4,391		—		12,625
Grade 4	581	843	589	291	1,363	1,651	—	5,318		49		648		530		1,164		931		1,605		—		4,927
Grade 5	—	—	—	—	51	—	—	51
Total residential real estate first lien	218,620	179,723	111,388	82,824	67,612	193,487	—	853,654		227,907		196,672		120,220		84,069		59,959		188,333		—		877,160
Residential real estate all other
Grade 1	17,918	15,800	11,956	7,509	5,819	12,591	31,491	103,084		12,798		14,033		9,976		6,381		4,203		13,338		27,591		88,320
Grade 2	2,735	2,010	1,535	1,914	465	2,593	56,292	67,544		1,355		3,188		1,763		1,563		914		2,284		54,473		65,540
Grade 3	358	486	355	121	223	299	922	2,764		279		102		264		240		709		327		556		2,477
Grade 4	183	257	570	65	75	702	56	1,908		14		183		—		580		13		649		369		1,808
Grade 5	—	70	—	—	—	—	—	70
Total residential real estate all other	21,194	18,623	14,416	9,609	6,582	16,185	88,761	175,370		14,446		17,506		12,003		8,764		5,839		16,598		82,989		158,145
Farmland
Grade 1	37,586	29,261	21,463	14,672	14,438	32,080	7,156	156,656		41,033		40,571		24,326		17,269		13,249		31,871		5,473		173,792
Grade 2	12,109	31,102	6,920	7,212	5,097	9,858	6,620	78,918		13,328		9,683		24,655		5,522		4,069		12,184		9,628		79,069
Grade 3	1,801	313	1,498	1,057	580	810	1,934	7,993		2,785		4,069		1,439		319		1,330		1,272		1,973		13,187
Grade 4	450	14	4,594	304	374	378	1,729	7,843		773		414		—		2,383		110		209		278		4,167
Total farmland	51,946	60,690	34,475	23,245	20,489	43,126	17,439	251,410		57,919		54,737		50,420		25,493		18,758		45,536		17,352		270,215
Commercial and agricultural non-real estate
Grade 1	246,924	205,433	137,219	83,013	51,528	42,830	281,100	1,048,047		222,156		110,551		93,150		46,932		50,431		48,206		216,301		787,727
Grade 2	78,784	37,525	27,662	7,598	6,626	25,172	71,701	255,068		52,100		37,867		26,032		9,759		3,176		13,683		72,080		214,697
Grade 3	10,273	5,326	1,605	1,305	363	384	16,684	35,940		4,577		5,676		1,357		11,555		1,452		623		28,105		53,345
Grade 4	25,556	2,036	1,865	2,312	1,362	302	2,758	36,191		2,675		421		1,607		958		810		1,268		2,465		10,204
Total commercial and agricultural non-real estate	361,537	250,320	168,351	94,228	59,879	68,688	372,243	1,375,246
Consumer non-real estate
Grade 1	129,050	110,557	50,270	17,947	6,330	2,605	6,432	323,191
Grade 2	9,299	7,265	4,171	1,092	648	334	281	23,090
Grade 3	389	895	569	272	95	74	16	2,310
Grade 4	70	300	169	94	40	73	1	747
Total consumer non-real estate	138,808	119,017	55,179	19,405	7,113	3,086	6,730	349,338


Total commercial and agricultural non-real estate		281,508		154,515		122,146		69,204		55,869		63,780		318,951		1,065,973
Consumer non-real estate
Grade 1		162,782		96,567		52,943		22,050		7,474		3,033		5,483		350,332
Grade 2		14,402		8,211		3,850		2,083		958		1,450		295		31,249
Grade 3		430		304		633		345		97		45		5		1,859
Grade 4		61		94		206		56		4		17		0		438
Total consumer non-real estate		177,675		105,176		57,632		24,534		8,533		4,545		5,783		383,878
Oil and gas
Grade 1		56,060		0		54		59		—		0		29,253		85,426
Grade 2		7,790		1,021		64		—		—		—		8,550		17,425
Grade 3		15,593		—		—		—		—		—		—		15,593
Total oil and gas		79,443		1,021		118		59		—		0		37,803		118,444
Other loans
Grade 1		223,041		32,338		23,410		16,745		14,904		34,319		25,442		370,199
Grade 2		—		—		0		0		2,140		3,047		1,010		6,197
Grade 3		—		0		0		10		0		47		1,052		1,109
Grade 4		—		54		125		—		283		83		111		656
Total other loans		223,041		32,392		23,535		16,755		17,327		37,496		27,615		378,161
Pegasus Bank
Grade 1		90,125		92,819		55,004		5,023		14,241		36,338		156,927		450,477
Grade 2		62,861		9,238		17,008		11,199		22,578		6,365		38,605		167,854
Grade 3		251		106		—		—		—		—		—		357
Total Pegasus Bank		153,237		102,163		72,012		16,222		36,819		42,703		195,532		618,688
Total loans held for investment	$	1,824,056	$	1,197,631	$	824,614	$	412,040	$	307,196	$	715,083	$	736,316	$	6,016,936

Other loans

Grade 1

883,501

30,094

27,022

21,115

18,894

14,807

21,178

1,016,611
Grade 2

—

—

17

2,963

1,163

1,978

753

6,874
Grade 3

—

—

12

—

—

66

—

78
Grade 4

—

—

—

13

28

69

866

976
Total other loans

883,501

30,094

27,051

24,091

20,085

16,920

22,797

1,024,539
Pegasus Bank

Grade 1

77,749

71,121

38,632

29,364

13,934

42,795

85,867

359,462
Grade 2

19,119

32,094

4,321

20,939

3,942

7,285

76,104

163,804
Grade 3

—

—

—

—

—

1,331

—

1,331
Total Pegasus Bank

96,868

103,215

42,953

50,303

17,876

51,411

161,971

524,597
Total loans held for investment

$2,470,333

$1,241,465

$690,620

$465,014

$350,781

$673,255

$720,625

$6,612,093

Allowance for Credit Losses Methodology

On January 1, 2020, the Company adopted ASC 326, which replaces the incurred loss methodology for determining its provision for credit losses and allowance for credit losses with an expected loss methodology that is referred to as the CECL model. ~~See Note (1) for additional information regarding the factors that influenced the Company’s current estimate of expected credit losses.~~ Upon adoption, the allowance for credit losses was decreased by ~~$3.2~~$3.2 million, with no impact to the consolidated statement of income. ~~Subsequent to the adoption of ASC 326, the Company recorded a $57.7 million provision~~

The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist by identifying by portfolio segments, the applicable weighted average life and measuring the allowance for credit losses using the vintage loss analysis adjusted for qualitative factors. The weighted average lives of the Company’s loans segments are disclosed in Note (1) to the Company’s Annual Report on Form 10-K for the ~~first nine months~~year ended December 31, 2020.

The decrease in the allowance for credit loss during 2021 was primarily driven by a reversal of ~~2020 utilizing~~provision during 2021 based on sustained improvements in the economy, both nationally and in Oklahoma, which reduced the amount of expected credit loss within the loan portfolio. This reduction was partially offset by additional allowance for credit loss required by newly adopted CECL methodology, a significant increase from the first nine months of 2019. The increase resulted primarily from the anticipated impact on our loan portfolio resulting from the economic outlook related to the COVID-19 pandemic and the decline in energy prices and to a lesser degree, loan growth during the first nine months of 2020. Prolonged low energy prices will not only have a direct impact on the energy portfolio; it will have an indirect effect on the economies of Oklahoma and the Dallas, Texas market, including higher unemployment,acquired loans purchased with ~~a residual effect on land values and real estate prices.~~credit deterioration.

1913

The following table details activity in the allowance for credit losses on loans for the period 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		Impact of CECL adoption			Initial allowance on loans purchased with credit deterioration		Charge- offs			Recoveries		Net charge-offs			Provision for credit losses on loans			Balance at end of period		Allowance for Credit Losses
	(Dollars in thousands)																				Balance at beginning of period		Initial allowance on loans purchased with credit deterioration			Charge- offs			Recoveries		Net charge-offs			(Benefit from) /Provision for credit losses on loans			Balance at end of period
Three Months Ended September 30, 2020
																					(Dollars in thousands)
Three Months Ended September 30, 2021
BancFirst
Real estate:
Commercial real estate owner occupied	$	6,630	$	—		$	—	$	(24	)	$	1	$	(23	)	$	1,287		$	7,894	$	6,755	$	93		$	(3	)	$	72	$	69		$	(51	)	$	6,866
Commercial real estate non-owner occupied		9,483		—			—		(87	)		—		(87	)		5,508			14,904		14,490		191			(7	)		67		60			(6	)		14,735
Construction and development < 60 months		1,755		—			—		—			3		3			(169	)		1,589		2,893		0			—			4		4			398			3,295
Construction residential real estate < 60 months		2,259		—			—		(368	)		—		(368	)		769			2,660		889		—			—			—		—			(35	)		854
Residential real estate first lien		8,553		—			—		(133	)		5		(128	)		1,839			10,264		2,805		9			(4	)		9		5			186			3,005
Residential real estate all other		2,720		—			—		(84	)		1		(83	)		219			2,856		1,941		—			0			46		46			202			2,189
Farmland		2,511		—			—		(3	)		—		(3	)		1,902			4,410		3,715		(248	)		—			0		0			967			4,434
Commercial and agricultural non-real estate		44,505		—			—		(594	)		13		(581	)		5,518			49,442		31,615		952			(146	)		43		(103	)		(859	)		31,605
Consumer non-real estate		4,714		—			—		(195	)		43		(152	)		539			5,101		3,315		30			(67	)		49		(18	)		51			3,378
Oil and gas																						7,817		—			—			—		—			(38	)		7,779
Other loans		2,513		—			—		(100	)		8		(92	)		800			3,221		3,138		—			(73	)		—		(73	)		239			3,304
Pegasus Bank		3,857		—			—		(600	)		—		(600	)		528			3,785		4,590		—			—			—		—			429			5,019
Total	$	89,500	$	—		$	—	$	(2,188	)	$	74	$	(2,114	)	$	18,740		$	106,126	$	83,963	$	1,027		$	(300	)	$	290	$	(10	)	$	1,483		$	86,463
Nine Months Ended September 30, 2020
Nine Months Ended September 30, 2021
BancFirst
Real estate:
Commercial real estate owner occupied	$	5,625	$	(2,806	)	$	432	$	(137	)	$	2	$	(135	)	$	4,778		$	7,894	$	7,035	$	1,080		$	(3	)	$	73	$	70		$	(1,319	)	$	6,866
Commercial real estate non-owner occupied		8,358		(5,507	)		—		(87	)		—		(87	)		12,140			14,904		11,842		824			(803	)		67		(736	)		2,805			14,735
Construction and development < 60 months		2,214		(1,056	)		—		(59	)		6		(53	)		484			1,589		2,560		173			—			9		9			553			3,295
Construction residential real estate < 60 months		1,933		(778	)		—		(397	)		—		(397	)		1,902			2,660		627		—			—			—		—			227			854
Residential real estate first lien		8,692		(3,831	)		7		(351	)		11		(340	)		5,736			10,264		2,570		126			(56	)		36		(20	)		329			3,005
Residential real estate all other		2,767		(1,408	)		—		(116	)		29		(87	)		1,584			2,856		2,230		—			(46	)		50		4			(45	)		2,189
Farmland		2,821		(1,408	)		1		(3	)		—		(3	)		2,999			4,410		3,136		395			—			1		1			902			4,434
Commercial and agricultural non-real estate		15,345		11,849			62		(968	)		96		(872	)		23,058			49,442		32,400		5,663			(3,683	)		194		(3,489	)		(2,969	)		31,605
Consumer non-real estate		3,252		(622	)		—		(751	)		157		(594	)		3,065			5,101		3,377		38			(689	)		247		(442	)		405			3,378
Oil and gas																						17,851		—			—			—		—			(10,072	)		7,779
Other loans		2,632		(116	)		—		(100	)		10		(90	)		795			3,221		3,182		—			(134	)		—		(134	)		256			3,304
Pegasus Bank		599		2,488			—		(841	)		424		(417	)		1,115			3,785		4,556		—			—			1		1			462			5,019
Total	$	54,238	$	(3,195	)	$	502	$	(3,810	)	$	735	$	(3,075	)	$	57,656		$	106,126	$	91,366	$	8,299		$	(5,414	)	$	678	$	(4,736	)	$	(8,466	)	$	86,463


	Allowance for Credit Losses
	Balance at beginning of period		Impact of CECL adoption		Initial allowance on loans purchased with credit deterioration		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 September 30, 2020
BancFirst
Real estate:
Commercial real estate owner occupied	$	6,630	$	—	$	—	$	(24	)	$	1	$	(23	)	$	1,287		$	7,894
Commercial real estate non-owner occupied		9,483		—		—		(87	)		—		(87	)		5,508			14,904
Construction and development < 60 months		1,755		—		—		—			3		3			(169	)		1,589
Construction residential real estate < 60 months		2,259		—		—		(368	)		—		(368	)		769			2,660
Residential real estate first lien		8,553		—		—		(133	)		5		(128	)		1,839			10,264
Residential real estate all other		2,720		—		—		(84	)		1		(83	)		219			2,856

	Allowance for Credit Losses
	Balance at beginning of period		Charge- offs			Recoveries		Net charge-offs			Provision for credit losses on loans		Balance at end of period
	(Dollars in thousands)
Three Months Ended September 30, 2019
Farmland																2,511		—			—		(3	)		—		(3	)		1,902		4,410
Commercial and agricultural non-real estate																34,036		—			—		(594	)		13		(581	)		2,463		35,918
Consumer non-real estate																4,714		—			—		(195	)		43		(152	)		539		5,101
Oil and gas																10,469		—			—		—			—		—			3,055		13,524
Other loans																2,513		—			—		(100	)		8		(92	)		800		3,221
Pegasus Bank																3,857		—			—		(600	)		—		(600	)		528		3,785
Total															$	89,500	$	—		$	—	$	(2,188	)	$	74	$	(2,114	)	$	18,740	$	106,126
Nine Months Ended September 30, 2020
BancFirst
Real estate:
Non-residential real estate owner occupied	$	6,887	$	(2	)	$	1	$	(1	)	$	72	$	6,958
Non-residential real estate other		11,287		(35	)		33		(2	)		478		11,763
Residential real estate permanent mortgage		3,325		(63	)		2		(61	)		97		3,361
Commercial real estate owner occupied															$	5,625	$	(2,806	)	$	432	$	(137	)	$	2	$	(135	)	$	4,778	$	7,894
Commercial real estate non-owner occupied																8,358		(5,507	)		—		(87	)		—		(87	)		12,140		14,904
Construction and development < 60 months																2,214		(1,056	)		—		(59	)		6		(53	)		484		1,589
Construction residential real estate < 60 months																1,933		(778	)		—		(397	)		—		(397	)		1,902		2,660
Residential real estate first lien																8,692		(3,831	)		7		(351	)		11		(340	)		5,736		10,264
Residential real estate all other		11,721		(29	)		2		(27	)		507		12,201		2,767		(1,408	)		—		(116	)		29		(87	)		1,584		2,856
Non-consumer non-real estate		15,232		(244	)		49		(195	)		347		15,384
Farmland																2,821		(1,408	)		1		(3	)		—		(3	)		2,999		4,410
Commercial and agricultural non-real estate																13,462		13,195			62		(968	)		96		(872	)		10,071		35,918
Consumer non-real estate		3,234		(287	)		66		(221	)		261		3,274		3,252		(622	)		—		(751	)		157		(594	)		3,065		5,101
Oil and gas																1,883		(1,346	)		—		—			—		—			12,987		13,524
Other loans		2,449		—			9		9			189		2,647		2,632		(116	)		—		(100	)		10		(90	)		795		3,221
Acquired loans		973		(1,517	)		53		(1,464	)		767		276
Pegasus Bank		—		—			24		24			40		64		599		2,488			—		(841	)		424		(417	)		1,115		3,785
Total	$	55,108	$	(2,177	)	$	239	$	(1,938	)	$	2,758	$	55,928	$	54,238	$	(3,195	)	$	502	$	(3,810	)	$	735	$	(3,075	)	$	57,656	$	106,126
Nine Months Ended September 30, 2019
BancFirst
Real estate:
Non-residential real estate owner occupied	$	6,328	$	(11	)	$	2	$	(9	)	$	639	$	6,958
Non-residential real estate other		11,027		(57	)		34		(23	)		759		11,763
Residential real estate permanent mortgage		3,261		(130	)		11		(119	)		219		3,361
Residential real estate all other		10,673		(224	)		29		(195	)		1,723		12,201
Non-consumer non-real estate		13,151		(401	)		201		(200	)		2,433		15,384
Consumer non-real estate		3,065		(569	)		175		(394	)		603		3,274
Other loans		2,423		—			87		87			137		2,647
Acquired loans		1,461		(1,713	)		206		(1,507	)		322		276
Pegasus Bank		—		—			24		24			40		64
Total	$	51,389	$	(3,105	)	$	769	$	(2,336	)	$	6,875	$	55,928

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 credit-deteriorated loans purchased ~~credit deteriorated loans for~~during the ~~period are~~nine months ended September 30, 2021 and 2020 were as follows:

Loans acquired
with deteriorated
credit quality

(Dollars in thousands)

For the period ended September 30, 2020

Purchase price of acquired loans

$
860

Allowance for credit losses of acquired loans

460

Par value of acquired loans

$
1,320


	Loans acquired with deteriorated credit quality
	(Dollars in thousands)
For the period ended September 30, 2021
Purchase price of loans at acquisition	$	39,284
Allowance for credit losses at acquisition		8,299
Par value of acquired loans at acquisition	$	47,583

For the period ended September 30, 2020
Purchase price of loans at acquisition	$	1,761
Allowance for credit losses at acquisition		502
Par value of acquired loans at acquisition	$	2,263

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 nine months ended September 30, 2021 and 2020, no material amount of interest income was recognized on collateral-dependent loans subsequent to their classification as collateral-dependent. The following table summarizes collateral-dependent gross loans held for investment by collateral type and the related specific allocation as follows:

	Collateral Type
	Real Estate		Business Assets		Energy Reserves		Other Assets		Collateral Type
	(Dollars in thousands)								Real Estate		Business Assets		Energy Reserves		Other Assets		Total		Specific Allocation
As of September 30, 2020
									(Dollars in thousands)
As of September 30, 2021
BancFirst
Real estate:
Commercial real estate owner occupied	$	1,508	$	—	$	—	$	—	$	1,913	$	—	$	—	$	—	$	1,913	$	692
Commercial real estate non-owner occupied		20,477		—		—		—		806		—		—		—		806		237
Construction and development < 60 months		14		—		—		—		—		—		—		—		—		—
Construction residential real estate < 60 months		—		—		—		—		—		—		—		—		—		—
Residential real estate first lien		1,279		—		—		—		927		—		—		—		927		162
Residential real estate all other		759		—		—		—		1,190		—		—		—		1,190		803
Farmland		3,814		—		—		—		8,042		—		—		—		8,042		2,257
Commercial and agricultural non-real estate		—		2,759		28,256		4,856		—		7,017		747		5,724		13,488		5,636
Consumer non-real estate		—		—		—		141		—		—		—		82		82		26
Oil and gas										—		—		—		—		—		—
Other loans		—		12		—		—		—		10		—		—		10		10
Pegasus Bank		1,257		—		—		—		—		—		—		—		—		—
Total collateral-dependent loans held for investment	$	29,108	$	2,771	$	28,256	$	4,997	$	12,878	$	7,027	$	747	$	5,806	$	26,458	$	9,823

									Collateral Type
									Real Estate		Business Assets		Energy Reserves		Other Assets		Total		Specific Allocation
									(Dollars in thousands)
As of December 31, 2020
BancFirst
Real estate:
Commercial real estate owner occupied									$	848	$	—	$	—	$	—	$	848	$	226
Commercial real estate non-owner occupied										4,719		—		—		—		4,719		1,000
Construction and development < 60 months										—		—		—		—		—		—
Construction residential real estate < 60 months										—		—		—		—		—		—
Residential real estate first lien										860		—		—		—		860		151
Residential real estate all other										866		—		—		—		866		616
Farmland										3,258		—		—		—		3,258		1,114
Commercial and agricultural non-real estate										—		8,460		—		413		8,873		2,813
Consumer non-real estate										—		—		—		109		109		58
Oil and gas										—		—		—		—		—		—
Other loans										—		13		—		—		13		12
Pegasus Bank										1,257		—		—		—		1,257		222
Total collateral-dependent loans held for investment									$	11,808	$	8,473	$	—	$	522	$	20,803	$	6,212

Non-Cash Transfers from Loans and Premises and Equipment

Transfers from loans and premises and equipment to other real estate owned and repossessed assets are non-cash transactions, and are not included in the statements of cash flow.

Transfers from loans and premises and equipment to other real estate owned and repossessed assets during the periods presented are summarized as follows:


	Nine Months Ended September 30,
	2021		2020
	(Dollars in thousands)
Other real estate owned	$	10,564	$	3,458
Repossessed assets		594		965
Total	$	11,158	$	4,423

Nine Months Ended
September 30,

2020

2019

(Dollars in thousands)

Other real estate owned

$
3,458

$
2,972

Repossessed assets

965

946

Total

$
4,423

$
3,918

(5) INTANGIBLE ASSETS AND GOODWILL

~~(5)~~

~~INTANGIBLE ASSETS AND GOODWILL~~

The following is a summary of intangible ~~assets:~~assets as of the date listed:

	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
	(Dollars in thousands)							Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
As of September 30, 2020
								(Dollars in thousands)
September 30, 2021
Core deposit intangibles	$	35,561	$	(16,366	)	$	19,195	$	27,433	$	(9,607	)	$	17,826
Customer relationship intangibles		3,350		(2,631	)		719		3,350		(2,851	)		499
Total	$	38,911	$	(18,997	)	$	19,914	$	30,783	$	(12,458	)	$	18,325
As of December 31, 2019
December 31, 2020
Core deposit intangibles	$	35,856	$	(14,131	)	$	21,725	$	33,411	$	(15,076	)	$	18,335
Customer relationship intangibles		3,391		(2,508	)		883		3,350		(2,686	)		664
Total	$	39,247	$	(16,639	)	$	22,608	$	36,761	$	(17,762	)	$	18,999

~~The Company acquired Citizens on March 5, 2020, which added $1.3 million in goodwill.~~ 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, ~~2019.~~2020.

The Company has had a nonqualified incentive stock option plan, the BancFirst Corporation Stock Option Plan (the ~~“BancFirst ISOP”~~“Employee Plan”), since May 1986. At September 30, ~~2020,~~2021, there were ~~321,500~~186,000 shares available for future grants. The ~~BancFirst ISOP~~Employee Plan will terminate on December 31, 2024, if not extended. The options vest and are exercisable beginning four years from the date of grant at the rate of ~~25%~~25% per year for four ~~years.~~years. Options expire no later than the end of fifteen years from the date of ~~grant.~~grant. The option price must be no less than ~~100%~~100% of the fair value of the stock relating to such option at the date of grant.

The Company has had the BancFirst Corporation Non-Employee Directors’ Stock Option Plan (the ~~“BancFirst~~“Non-Employee Directors’ ~~Stock Option~~ Plan”) since June 1999. Each non-employee director is granted an option for 10,000 shares. At September 30, ~~2020,~~2021, there were ~~30,000~~40,000 shares available for future grants. The ~~BancFirst~~Non-Employee Directors’ ~~Stock Option~~ Plan will terminate on December 31, 2024, if not extended. The options vest and are exercisable beginning one year from the date of grant at the rate of ~~25%~~25% per year for four years, and expire no later than the end of fifteen years from the date of grant. The option price must be no less than ~~100%~~100% of the fair value of the stock relating to such option at the date of grant.

The Company currently uses newly issued shares for stock option exercises, 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 in cash on a limited basis at the discretion of the Company. During the nine months ended September 30, 2021, the Company had cash settlements for 121,330 shares for a total net cash settlement of options of $5.5 million that did not increase the outstanding shares of the Company.

The following table has additional information regarding options exercised under both the ~~BancFirst ISOP~~Employee Plan and the ~~BancFirst~~Non-Employee Directors’ ~~Stock Option~~ Plan:

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model and is based on certain assumptions including risk-free rate of return, dividend yield, stock price volatility and the expected term. The fair value of each option is expensed over its vesting period.

The Company will continue to amortize the unearned stock-based compensation expense over the remaining vesting period of approximately seven ~~years.~~years. The following table shows the unearned stock-based compensation expense:

The following table shows the assumptions used for computing stock-based compensation expense under the fair value method on options granted during the periods presented:

The risk-free interest rate is determined by reference to the spot zero-coupon rate for the U.S. Treasury security with a maturity similar to the expected term of the options. The dividend yield is the expected yield for the expected term. The stock price volatility is estimated from the recent historical volatility of the Company’s stock. The expected term is estimated from the historical option exercise experience. The Company accounts for forfeitures as they occur.

The Company has had the BancFirst Corporation Directors’ Deferred Stock Compensation Plan (the ~~“BancFirst Deferred~~“Deferred Stock Compensation Plan”) since May 1999. As of September 30, ~~2020,~~2021, there are ~~24,982~~37,269 shares available for future issuance under the ~~BancFirst~~ Deferred Stock Compensation Plan. The ~~BancFirst~~ Deferred Stock Compensation Plan will terminate on December 31, 2024, 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%~~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 ~~1,307~~2,161 and ~~9,542~~1,307 shares of common stock distributed from the ~~BancFirst~~ Deferred Stock Compensation Plan during the nine months ended September 30, 2021 and 2020, ~~and September 30, 2019,~~ respectively.

In November 1999, the Company adopted the SRP. The SRP may be used as a means to increase earnings per share and return on ~~equity,~~equity. In addition, the SRP may be used to purchase treasury stock for the exercise of stock options or for distributions under the Deferred Stock Compensation Plan, 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

timing, price and amount of stock repurchases under the SRP may be determined by management and approved by the Company’s Executive Committee. During September 2021, the SRP was amended to permit the repurchase of an additional 650,000 shares.

The Company, BancFirst and Pegasus Bank 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 the Company’s, BancFirst’s and Pegasus Bank’s 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 financial statements. Management believes that as of September 30, ~~2020,~~2021, the Company, BancFirst and Pegasus Bank met all capital adequacy requirements to which they are subject. The actual and required capital amounts and ratios are shown in the following table:

As of September 30, ~~2020,~~2021, the most recent notification from the Federal Reserve Bank of Kansas City and the FDIC categorized BancFirst and Pegasus Bank as “well capitalized” under the prompt corrective action provisions. The Common Equity Tier 1 Capital of the Company, BancFirst and Pegasus Bank 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 the Company, BancFirst and Pegasus Bank is reduced by goodwill and other intangible assets, net of associated deferred tax liabilities. The Company’s trust preferred securities have continued to be included in Tier 1 capital, as the Company’s total assets do not exceed ~~$15~~$15 billion. There are no conditions or events since the most recent notification of BancFirst and Pegasus Bank’s capital category that management believes would materially change its category under capital requirements existing as of the report date.

In April 2020, the Company began originating loans to qualified small businesses under the PPP administered by the SBA. Federal bank regulatory agencies have issued an interim final rule that permits banks to neutralize the regulatory capital effects of

participating in the Paycheck Protection Program Lending Facility (the “PPP Facility”) and clarify that PPP loans have a 0 percent risk weight under applicable risk-based capital rules. Specifically, a bank may exclude all PPP loans pledged as collateral to the PPP Facility from its average total consolidated assets for the purposes of calculating its leverage ratio, while PPP loans that are not pledged as collateral to the PPP Facility are included. The PPP loans the Company originated in ~~the second quarter of~~ 2020 and 2021 are included in the calculation of the Company’s leverage ratio as of September 30, ~~2020~~2021 as the Company did not utilize the PPP Facility for funding purposes.

~~As discussed in Note 1 - Significant Accounting Policies, in connection with the adoption of ASC 326,~~On June 17, 2021, the Company ~~recognized an after-tax cumulative effect reduction~~completed a private placement, under Regulation D of the Securities Act of 1933, of $60 million aggregate principal amount of Subordinated Notes. The Subordinated Notes have been structured to ~~retained earnings totaling $2.3 million. In February 2019, the federal~~qualify as Tier 2 capital under bank regulatory agencies issued a final rule (the “2019 CECL Rule”) that revised certain capital regulations to account for changes to credit loss accounting under U.S. GAAP. The 2019 CECL Rule included a transition option that allows banking organizations to phase in, over a three-year period, the day-one adverse effects of CECL on their regulatory capital ratios (three-year transition option). In March 2020, the federal bank regulatory agencies issued an interim final rule that maintains the three-year transition option of the 2019 CECL Rule and also provides banking organizations that were required under U.S. GAAP (as of January 2020) to implement CECL before the end of 2020 the option to delay for two years an estimate of the effect of CECL on regulatory capital, relative to the incurred loss methodology’s effect on regulatory capital, followed by a three-year transition period (five-year transition option). The Company elected not to adopt the five-yearguidelines. ~~transition option.~~

The following table shows the number and average exercise price of options that were excluded from the computation of diluted net income per common share for each period because the options were anti-dilutive for the period:

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 nine months ended September 30, 2021, the Company transferred debt securities from Level 3 to Level 2 due to a review of the pricing models that determined some asset backed debt securities to be Level 2. During the year ended December 31, 2020, the Company transferred debt securities from Level 2 to Level 3 due to a review of the pricing models that determined some state and political subdivisions bonds to be Level 3. ~~During the twelve months ended December 31, 2019, the Company did 0t transfer any securities between levels in the fair value hierarchy.~~

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; that is, 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. ~~Beginning January 1, 2018, upon adoption of ASU 2016-01, these~~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 management 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 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 were 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.

~~The carrying amount of these short-term instruments is based on a reasonable estimate of fair value.~~

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.

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. ~~The Company has an agreement to sell approximately $21.5 million of its loans in Hugo, OK to AmeriState Bank. These loans are included in~~ Loans held ~~for sale. 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. At December 31, 2020, the Company’s principal subsidiary bank, BancFirst, had approximately $21.6 million in loans held for sale at its Hugo, Oklahoma branch that were sold to AmeriState Bank in Atoka, Oklahoma in the first quarter of 2021.

To determine the fair value of loans, 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 ~~including PPP 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.

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.

The amounts payable on these short-term instruments are reasonable estimates of fair value.

The fair values of ~~junior~~ subordinated ~~debentures~~debt are estimated using the rates that would be charged for ~~junior~~ subordinated ~~debentures~~debt of similar remaining maturities.

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.

The Company has 0 non-financial assets or non-financial liabilities measured at fair value on a recurring basis. Certain non-financial assets and non-financial liabilities measured at fair value on a nonrecurring basis include intangible assets and other non-financial long-lived assets measured at fair value and adjusted for impairment. These items are evaluated at least annually for impairment. The overall levels of non-financial assets and non-financial liabilities measured at fair value on a nonrecurring basis were 0t0t considered to be significant to the Company at September 30, ~~2020~~2021 or December 31, ~~2019.~~2020.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis of our financial condition as of September 30, ~~2020~~2021 and December 31, ~~2019~~2020 and results of operations for the three and nine months ended September 30, ~~2020~~2021 should be read in conjunction with our consolidated financial statements and notes to the financial statements for the year ended December 31, ~~2019,~~2020, and the other information included in the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2019.~~2020. Certain risks, uncertainties and other factors, including those set forth under "Risk Factors" in Part I, Item 1A of the ~~2019~~2020 Form 10-K, and ~~"Item~~"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.

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:

~~Since the latter half of the first quarter of 2020, the~~The COVID-19 pandemic and actions taken in response to it have negatively impacted the global economy and all financial ~~markets. Since~~markets since March 31, ~~2020, these conditions and the related financial impact have continued and, in some cases, worsened. The Company believes that it is premature to determine the magnitude of the impact at this point.~~2020. Although the Company is not able to estimate the impact of the COVID-19 pandemic and the resultant economic circumstances on a long-term basis at this time, the COVID-19 pandemic could materially affect the Company’s financial and operational results. ~~See Item 1.A. Risk Factors for further discussion.~~

The Company is closely monitoring its loan portfolio for effects related to COVID-19. The decline in economic activity as a result of the pandemic has caused a sharp decline in crude oil prices since February 2020. This decline has negatively impacted the oil and gas industry and the overall economies of our Oklahoma and Dallas, Texas markets and is expected to cause further worsening conditions of energy companies, oilfield services companies, related businesses and overall economic activitiesSee Item 1.A. Risk Factors in the Company’s ~~primary markets. Prolonged or heightened pricing pressure~~Annual Report on ~~oil and gas could lead to increased credit stress in~~Form 10-K for the ~~Company’s energy portfolio, increased losses associated with that portfolio and weaker demand~~year ended December 31, 2020, for ~~energy lending, lower borrowing needs, negative impact on construction and real estate related to energy, and a number of other potential impacts that are difficult to isolate or quantify.~~further discussion.

~~If the negative impacts due to COVID-19 continue coupled with low energy prices, it is possible that the~~

~~BancFirst Corporation’s~~ net income for the third quarter of ~~2020~~2021 was ~~$20.9~~$38.8 million, compared to ~~$33.4~~$20.9 million for the third quarter of ~~2019.~~2020. Diluted net income per common share was ~~$0.63~~$1.16 and ~~$1.00~~$0.63 for the third quarter of ~~2020~~2021 and ~~2019,~~2020, respectively. The ~~results~~Company recorded a provision for credit losses of $1.5 million for the third quarter of ~~2020 were negatively impacted by~~2021, compared to a ~~higher~~ provision for credit ~~losses. The~~losses of $18.7 million for the third quarter of ~~2020 includes~~2020.

Net income was $129.5 million, or $3.88 diluted earnings per share, for the nine months ended September 30, 2021, compared to net income of Pegasus Bank in Dallas, Texas, which was acquired on August 15, 2019, and the income and expenses associated with the purchase of certain assets and assumption of certain liabilities on March 5, 2020, from The Citizens State Bank of Okemah.

~~Net income was~~ $64.2 million, or $1.94 diluted earnings per share, for the nine months ended September 30, ~~2020, compared to~~2020. The Company recorded a net ~~income~~benefit from reversal of ~~$99.4~~provisions for credit losses of $8.5 million ~~or $2.98 diluted earnings per share,~~ for the nine months ended September 30, ~~2019.~~2021 compared to a provision for credit losses of $57.7 million for the nine months ended September 30, 2020.

The Company’s net interest income for the third quarter of ~~2020~~2021 increased to ~~$75.9~~$80.2 million, compared to ~~$72.3~~$75.9 million for the third quarter of ~~2019.~~2020, as a result of an increase of $6.2 million in fee income from Paycheck Protection Program (PPP) loan forgiveness. The net interest margin for the third quarter was ~~3.40%~~3.09%, compared to ~~3.89%~~3.40% a year ago. Noninterest income for the third quarter of 2021 totaled $39.8 million, compared to $34.6 million for the third quarter of 2020. The ~~Company’s provision~~increase in noninterest income was attributable to $2.9 million in rental income from other real estate property, a $2.1 million increase in income from debit card interchange fees and a $1.5 million increase in insurance commissions. Noninterest expense for ~~credit losses~~the third quarter of 2021 increased to $70.2 million, compared to $66.1 million for the third quarter of 2020, ~~was $18.7 million, compared to $2.8 million a year ago. The~~because of the increase in ~~the provision~~approximately $2.0 million related to ~~reserve build up for expected credit losses stemming~~other real estate property operating costs and $1.0 million in net occupancy and depreciation primarily from the ~~COVID-19 pandemic and low energy prices. The Company had net charge-offs 0.03% of average loans, compared~~Company’s move to 0.04% of average loans for the third quarter of 2019. Noninterest income for the quarter totaled $34.6 million, compared to $35.6 million last year. The decrease in noninterest income is primarily due to a decrease in deposit charges resulting from lower economic activity. Noninterest expense for the quarter totaled $66.1 million, compared to $62.2 million last year. The increase in noninterest expenses was primarily due to salary increases in 2020 related to annual merit increases and the acquisition of Pegasus Bank.its new corporate headquarters. The Company’s effective tax rate was ~~18.4% compared to 22.3%~~19.7% for the third quarter of ~~2019.~~2021 compared to 18.4% for the third quarter of 2020.

At September 30, ~~2020,~~2021, the Company’s total assets were ~~$9.6~~$11.3 billion, an increase of ~~$1.1~~$2.1 billion from December 31, ~~2019. Debt securities~~2020. Loans totaled $6.0 billion, a decrease of ~~$596.9 million were up $105.3~~$410.3 million from December 31, ~~2019. Loans~~2020 stemming from a net decrease of approximately $451.5 million in PPP loans and the sale of approximately $21 million of loans from the Company’s Hugo, Oklahoma branch, along with pay downs on loans. The decrease in loans were partially offset by the Company’s purchase of approximately $149 million in loans from the First National Bank and Trust Company of Vinita, Oklahoma. Deposits totaled ~~$6.7~~$10.0 billion, an increase of ~~$987.6 million from December 31, 2019. Deposits totaled $8.5 billion, an increase of $1.0~~$1.9 billion from the December 31, ~~2019~~2020 total. The increase in assets ~~loans~~ and deposits ~~were primarily~~was predominantly related to ~~the~~ ~~Paycheck Protection Program (PPP)~~PPP and other government stimulus. payments. At September 30, ~~2020,~~2021, the Company had PPP loans held for investment of ~~$830.3~~$201.2 million, net of unamortized processing fees of ~~$22.5 million, and approximately $1.4 million in PPP loans held for sale.~~$6.7 million. The Company’s total stockholders’ equity at September 30, 2021 was ~~$1.0~~$1.1 billion, an increase of ~~$38.8~~$79.0 million over December 31, ~~2019.~~2020. Off-balance sheet sweep accounts totaled $2.7 billion at September 30, 2021 compared to $2.8 billion at December 31, 2020.

Nonaccrual loans represent ~~1.24%~~0.44% of total loans at September 30, ~~2020, up~~2021, down from ~~0.32%~~0.58% at ~~year-end 2019.~~December 31, 2020. Net charge-offs were 0.01% of average loans for the third quarter of 2021, compared to 0.03% in the third quarter of 2020. The allowance for credit losses to total loans was ~~1.59% up from 0.96%~~1.43% at ~~year-end 2019.~~September 30, 2021 compared to 1.42% at December 31, 2020. The allowance for credit losses to nonaccrual loans was ~~128.82%~~324.96% at September 30, 2021 compared to ~~301.91%~~243.35% at ~~year-end 2019.~~

The Company’s principal subsidiary bank, BancFirst, has entered into an agreement to sell approximately $21.5 million in loans and $38.0 million in deposits from its Hugo, Oklahoma branch to AmeriState Bank in Atoka, Oklahoma. The transaction is scheduled to be completed during the first quarter of 2021 and is subject to regulatory approval.December 31, 2020.

See Note (2) of the Notes to Consolidated Financial Statements for disclosure regarding the Company’s recent developments, including mergers and acquisitions.

On ~~March 5, 2020,~~June 17, 2021, the Company purchased approximately $47.8 million in total assets, which included $22.9 million in loans and assumed approximately $45.0 million in deposits and certain other obligations of The Citizens State Bank of Okemah, Oklahoma “Citizens” forcompleted a ~~purchase price of $2.9 million. As a result~~private placement, under Regulation D of the ~~purchase, the Company recorded a core deposit intangible~~Securities Act of ~~approximately $206,000 and goodwill~~1933, of ~~approximately $1.3 million. The effect~~$60 million aggregate principal amount of this purchase was included in the consolidated financial statements of the Company from the date of purchase forward. The purchase did not have a material effect on the Company’s consolidated financial statements. Citizens was an Oklahoma state-chartered bank with banking locations in Okemah and Paden, Oklahoma. These banking locations became branches of BancFirst.

~~In the first quarter of 2020, the Company repurchased 59,284 shares of its common stock for $3.1 million at an average price of $52.26 per shares under the Company’s stock repurchase program.~~

~~On August 15, 2019 the Company acquired Pegasus Bank as described in the Company’s form 10-K for the year ended December 31, 2019.~~

3.50% Fixed-to-Floating Rate Subordinated Notes due 2036 (the “Subordinated Notes”) to various institutional accredited investors. See Note ~~(1)~~(7) of the Notes to Consolidated Financial Statements for a complete discussion of the Company’s subordinated notes.

There have been no changes in the Company’s disclosures regarding recently issued accounting ~~pronouncements.~~pronouncements since December 31, 2020, the date of its most recent annual report to stockholders.

See Note ~~(11)~~(12) of the Notes to Consolidated Financial Statements for disclosures regarding business segments.

The following table presents, for the periods indicated, certain information related to our average balance sheet and our 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. Average balances are derived from daily averages.

Selected income statement data and other selected data for the comparable periods were as follows:

For the three months ended September 30, ~~2020,~~2021, net interest income, which is the Company’s principal source of operating revenue, increased ~~$3.6~~$4.3 million or ~~4.9%~~5.7% compared to the three months ended September 30, ~~2019.~~2020. Net interest income increased ~~due to loan growth,~~ for the third quarter of 2021, ~~PPP~~as a result of an increase of $6.2 million in fee income ~~and the drop in interest rates on deposits.~~from PPP loan forgiveness. Net interest margin is the ratio of taxable-equivalent net interest income to average earning assets for the period. As shown in the preceding table, the Company’s net interest margin for the third quarter of ~~2020~~2021 decreased compared to the third quarter of ~~2019, primarily~~2020. This decrease in margin was due to ~~the lower average rates on federal funds and securities~~larger balances in interest-bearing deposits with banks during the quarter.

Net interest income for the nine months ended September 30, ~~2020~~2021 increased ~~$19.2~~$12.6 million or ~~9.2%~~5.6% compared to the nine months ended September 30, ~~2019.~~2020. Net interest income increased ~~due to~~for the nine months ended September 30, 2021, as a result of an increase of $24.2 million in fee income from PPP loan ~~growth,~~ ~~PPP~~ ~~fee income~~forgiveness and the drop in average interest rates on deposits. As shown in the preceding table, the Company’s net interest margin for the nine months ended September 30, ~~2020~~2021 decreased compared to the nine months ended September 30, ~~2019, primarily~~2020, due to ~~the~~larger balances and lower average rates on ~~federal funds and securities~~interest-bearing deposits with banks during the ~~quarter.~~period.

The Company’s net interest income and net interest margin have been, and the Company currently expects them to continue to be, impacted by the decreases in ~~market~~ interest rates ~~and~~stemming from the Federal Reserve's response to the COVID-19 pandemic. Our expectation is that interest rates will ~~remain at these low levels for some period of time~~increase slightly in ~~light of~~ the ~~on-going economic disruption arising~~upcoming year.

For the third quarter of 2021, the Company recorded a provision for credit losses of $1.5 million, compared to a provision for credit losses of $18.7 million for the third quarter of 2020. The Company’s provision for ~~credit losses for~~the third quarter of 2021 supported a stable reserve as COVID continues to impact some businesses in Oklahoma and Texas despite a decline in COVID cases. The elevated provision during the third quarter of 2020 was $18.7 million compared to $2.8 million a year ago. The increase in the provision was related to reserve build up for expected credit losses stemming from the COVID-19 pandemic and low energy prices. The Company’s provision this quarter is based on the Company’s ~~quarterly~~ evaluation of the ~~continued~~level of uncertainty and lack of clarity of the timing of an end to the COVID-19 pandemic, as well as the magnitude of the government’s stimulus response to it. To the extent the amount of time the economy remains adversely affected is more extended than the Company’s current projection, the Company expects to see a continuation of higher than normal provision in future periods. 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 $10,000 for the third quarter of 2021, compared to net loan charge-offs of $2.1 million for the third quarter of ~~2020, compared to net loan charge-offs of $1.9 million for the third quarter of 2019.~~2020. The rate of net charge-offs to average total loans, as presented in the preceding table, continues to be at a low level.

For the nine months ended September 30, ~~2020,~~2021, the ~~Company’s~~Company recorded a net benefit from reversal of provision for credit losses ~~was $57.7~~of $8.5 million compared to ~~$6.9~~a provision for credit losses of $57.7 million for nine months ended September 30, 2020. Net loan charge-offs were $4.7 million, compared to $3.1 million for the same period of the prior year. The Company’s reversal of provision for the nine months ended September 30, 2021 was based on improvements in economic conditions and the Company’s outlook for certain economic indicators. The elevated provision during the nine months ended September 30, 2020 was based on the Company’s evaluation of the level of uncertainty and lack of clarity of the timing of an end to the COVID-19 pandemic, as well as the magnitude of the government’s stimulus response to it.

Noninterest income, as presented in the preceding table, increased by $5.2 million for the third quarter of 2021 compared to the third quarter of 2020. The increase in noninterest income was attributable to $2.9 million in rental income from other real estate property, a $2.1 million increase in income from debit card interchange fees and a $1.5 million increase in insurance commissions.

Noninterest income included non-sufficient funds fees totaling $6.8 million and $6.4 million for the three months ended September 30, 2021 and 2020, respectively. This represents 17.2% and 18.6% of the Company’s noninterest income for the respective periods. In addition, the Company had debit card interchange fees totaling $11.7 million and $9.7 million during the three months ended September 30, 2021 and 2020, respectively. This represents 29.5% and 27.9% of the Company’s noninterest income for the respective periods. For the third quarter of 2021 compared to the third quarter of 2020, government assistance funds that flowed into the market, including PPP loans and stimulus payments to households, increased both customer liquidity and interchange volume resulting in higher debit card interchange fees.

Noninterest income increased by $22.5 million for the nine months ended September 30, ~~2019. Net loan charge-offs were $3.1 million, compared to $2.3 million for the same period of the prior year.~~

~~Noninterest income, as presented in the preceding table, decreased by $1.1 million for third quarter of 2020~~2021 compared to the ~~third quarter of 2019.~~nine months ended September 30, 2020. The ~~decrease~~increase in noninterest income ~~is primarily~~was due to a ~~decrease in deposit service charges resulting~~purchase gain of $4.8 million associated with The First National Bank and Trust Company of Vinita, Oklahoma, a gain from ~~lower economic activity and government stimulus. Noninterest income included non-sufficient funds fees totaling $6.4 million and $8.8 million for~~ the ~~three month periods ended September 30, 2020 and 2019, respectively. This represents 18.6% and 24.6%~~sale of the Company’s ~~noninterest~~Hugo, Oklahoma branch of $2.5 million, a $7.3 million increase in income ~~for the three month periods ended September 30, 2020~~from debit card interchange fees, $7.5 million in rental income from other real estate property, and ~~2019, respectively.~~a $2.4 million increase in insurance commissions, which were partially offset by a $4.5 million decrease in income from sweep fees. In addition, the Company ~~had fees from debit card usage totaling $9.7~~earned $5.7 million ~~and $8.7 million during~~on the ~~three month periods ended September 30, 2020 and 2019, respectively. This represents 27.9% and 24.3%~~sale of ~~the Company’s noninterest income for the three month periods ended September 30, 2020 and 2019, respectively.~~

~~Noninterest income~~loans for the nine months ended September 30, ~~2020 totaled $101.8 million~~2021 compared to ~~$101.7~~$4.2 million for the nine months ended September 30, ~~2019.~~2020. The income from sales of loans increased due to the increase in ~~noninterest income was primarily due to growth in debit card usage fees, partially offset by decreased service charges on deposits and equity security losses.~~ volume of mortgage loans originated because of record low mortgage rates.

Noninterest income included non-sufficient fund fees ~~from debit card usage~~ totaling ~~$27.0~~$18.0 million and ~~$25.1~~$19.7 million during the nine months ended September 30, ~~2020~~2021 and ~~2019,~~2020, respectively. This represents ~~26.5%~~14.4% and ~~24.6%~~19.3% of the Company’s noninterest income for the ~~nine month periods ended September 30, 2020 and 2019, respectively.~~respective periods. In addition, the Company had ~~non-sufficient fund~~debit card interchange fees totaling ~~$19.7~~$34.3 million and ~~$24.5~~$27.0 million during the nine months ended September 30, ~~2020~~2021 and ~~2019,~~2020, respectively. This represents ~~19.3%~~27.6% and ~~24.1%~~26.5% of the Company’s noninterest income for the ~~nine month periods ended September 30, 2020~~respective periods. Government assistance funds that flowed into the market, including PPP loans and ~~2019, respectively.~~

~~The Durbin Amendment is a provision~~stimulus payments to households, increased both customer liquidity and interchange volume. This activity resulted in ~~the larger Dodd-Frank Act that gave the Federal Reserve the authority to establish rates on debit card transactions. The Durbin Amendments’ intent is to control~~lower non-sufficient funds fees and higher debit card interchange fees ~~and restrict anti-competitive practices. The law applies~~for the nine months ended September 30, 2021 compared to ~~banks with over $10 billion in assets and limits these banks on what they charge for debit card interchange fees.~~ the nine months ended September 30, 2020.

Prior to the COVID-19 pandemic, there was ~~little or no~~minimal likelihood that the Company would surpass $10 billion in

total assets for several years. However, with the CARES Act, including PPP loans, stimulus payments to households, and artificially high household savings rates, our deposits and assets have grown dramatically beyond reasonably foreseeable levels. To the extent the COVID-19 pandemic ~~continues~~ and the ~~government response to~~effects of the aforementioned stimulus programs continue, it ~~continues on the same or similar basis,~~is likely the Company ~~has an increasingly heightened possibility of exceeding~~will exceed $10 billion in total assets at December 31, ~~2020.~~2021. Pursuant to the Durbin Amendment of the Dodd-Frank Act, based on current run rates, this would trigger an approximate ~~loss~~reduction of annual pretax income from debit card interchange fees of between ~~$16 and $18~~$20 to $22 million ~~in subsequent years.~~beginning July 1, 2022. The Company is ~~developing strategies~~undergoing efforts through the use of our existing sweep product to ~~avoid exceeding~~reduce total assets below $10 ~~billion in assets and the loss of interchange income,~~billion at December 31, 2021, but the success of these ~~strategies~~efforts is uncertain.

Noninterest expense, as presented in the preceding table, increased by ~~$3.9~~$4.1 million for third quarter of ~~2020~~2021 compared to the third quarter of ~~2019.~~2020. The increase in noninterest expenses was ~~primarily~~ due to ~~salary increases in 2020~~$2.0 million related to ~~annual merit increases~~other real estate property operating costs and ~~noninterest expenses of Pegasus Bank.~~approximately $1.0 million in net occupancy and depreciation primarily from the Company’s move to its new corporate headquarters.

For the nine months ended September 30, ~~2020,~~2021, noninterest expense increased by $17.1 million compared to the nine months ended September 30, ~~2019.~~2020. The increase in noninterest expenses was ~~primarily~~ due to ~~salary increases in 2020~~approximately $6.6 million related to ~~annual merit increases, pandemic~~other real estate

property operating costs, $4.0 million in acquisition related ~~salary~~ expenses, ~~noninterest expenses of Pegasus Bank and acquisition expenses related to the purchase of assets from Citizens, which were partially offset by $2.3~~approximately $3.5 million in net ~~gains~~occupancy and depreciation primarily from the Company’s move to its new corporate headquarters, and a $1.3 million increase in deposit insurance. The nine months ended September 30, 2020 included a $2.3 million gain on ~~sales~~the sale of ~~property carried in~~ other real estate ~~owned.~~ owned, compared to approximately $245,000 for the nine months ended September 30, 2021, that reduced noninterest expense.

The Company’s effective tax rate ~~on income before taxes~~ was 19.7% for the third quarter of 2021, compared to 18.4% for the third quarter of ~~2020, compared to 22.3% for the third quarter of 2019.~~2020. The ~~decrease in the~~lower effective tax rate for the third quarter of 2020 was due to a greater effect of tax credits ~~resulting from~~on lower reported income.

The Company’s effective tax rate on income before taxes was 20.8% for the nine months ended September 30, 2021, compared to 18.9% for the ~~first~~ nine months ~~of 2020, compared to 22.3% for the first nine months of 2019.~~ended September 30, 2020. The ~~decrease in the~~lower effective tax rate for the first nine months of 2020 was due to a greater effect of tax credits ~~resulting from~~on lower reported income.

The 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.

The aggregate of cash and due from banks and interest-bearing deposits with banks ~~decreased~~increased by ~~$32.8 million~~$2.5 billion or ~~1.8%~~154.2% to ~~$1.8~~$4.1 billion, from December 31, ~~2019~~2020 to September 30, ~~2020. As shown on the Company’s cash flow statement, the primary use of cash~~2021. The increase was ~~due~~primarily related to the increase in ~~loans.~~deposits from PPP and other government stimulus payments.

At September 30, ~~2020,~~2021, total debt securities ~~increased $105.3~~decreased $25.7 million, or ~~21.4%~~4.6% compared to December 31, ~~2019.~~2020. The size of the Company’s securities portfolio is determined by the Company’s liquidity and asset/liability management. The net unrealized gain on debt securities available for sale, before taxes, was ~~$11.7~~$6.4 million at September 30, ~~2020,~~2021, compared to a net unrealized gain of ~~$4.6~~$9.9 million at December 31, ~~2019.~~2020. These unrealized gains are included in the Company’s stockholders’ equity as accumulated other comprehensive income, net of income tax, in the amounts of a gain of ~~$8.7~~$4.9 million at September 30, ~~2020~~2021 and a gain of ~~$3.5~~$7.4 million at December 31, ~~2019. The net unrealized gains increased in 2020 due to the Federal Reserve decreasing interest rates to near zero in March 2020 because~~2020.

See Note (3) of the ~~economic effects of~~Notes to Consolidated Financial Statements for disclosures regarding the COVID-19 pandemic. As the effects on the economy due to the COVID-19 pandemic became more apparent late in the first quarter, monetary flows were directed to high quality fixed income instruments such as short-term Treasury securities. Over the nine-month period, the yield on the three-year Treasury note decreased 146 basis points with a corresponding increase in valuations.Company’s Securities.

At September 30, ~~2020,~~2021, total loans ~~totaled $6.7 billion, an increase of $987.6~~decreased $410.3 million ~~from~~or 6.4% compared to December 31, ~~2019.~~2020. The ~~increase~~decrease in loans ~~was primarily related to the~~resulted from a net decrease of approximately $451.5 million in PPP ~~internal growth~~loans and the ~~purchase~~sale of approximately $21 million of loans from ~~Citizens.~~the Company’s Hugo, Oklahoma branch along with pay downs on loans. The decrease in loans were partially offset by the Company’s purchase of approximately $149 million in loans, from The First National Bank and Trust Company of Vinita, Oklahoma. At September 30, ~~2020,~~2021, the balance of total PPP loans was ~~$831.7~~$201.2 million, net of unamortized processing fees of ~~$22.5~~$6.7 million. Prolonged low energy prices will not only have a direct impact on the energy portfolio; it will have an indirect effect on the economies of Oklahoma and the Dallas, Texas market, including higher unemployment, with a residual effect on land values and real estate prices. At September 30, 2020, the Company had the following exposures to industries adversely impacted by the COVID-19 pandemic: energy $456.9 million, medical $154.7 million, hotels/motels $128.4 million and restaurants $83.8 million. In total, these industries represented approximately 13%

See Note (4) of the Notes to Consolidated Financial Statements for disclosures regarding the Company’s loan ~~portfolio.~~portfolio segments.

In addition, due to the impacts of the COVID-19 pandemic, the Company has approximately $104.5 million in modified loans, most of which are secured by commercial real estate, as of September 30, 2020. These modifications were undertaken in response to Section 4013 of the CARES Act and the regulatory intent outlined in the Interagency Statement on Loan Modifications by Financial Institutions Working with Customers Affected by the Coronavirus and to provide businesses financial flexibility until the economy has time to recover to a more normal level of activity. However, these modifications, which typically involve payment modifications and forbearance, also have the effect of delaying recognition of loans that may ultimately be permanently impaired. Consequently, it is reasonable to expect that when temporary regulatory accounting relief and payment modifications cease, there could be a marked increase in credit deteriorated and restructured loans. The timing and extent of such consequences are impossible to ascertain at this time and are dependent on the duration of the COVID-19 pandemic, the level and success of the government’s economic stimulus, and further regulatory guidance.

On January 1, 2020, the Company adopted ASC 326, which replaces the incurred loss methodology with an expected loss methodology that is referred to as CECL. ~~As a result, the Company recorded a~~The decrease to the allowance for credit losses of $3.2 million at January 1, 2020. At September 30, 2020, the allowance for credit losses to total loans represented 1.59% of total loans, compared to 0.96% at December 31, 2019. The increase in the allowance for credit ~~losses related to reserve build up for~~loss during 2021 was primarily driven by a reversal of provision during the second quarter of 2021, and a lower provision in the third quarter of 2021 based on sustained improvements in the economy, both nationally and in Oklahoma and Texas, which reduced the amount of expected credit ~~losses stemming from~~loss within the ~~COVID-19 pandemic and low energy prices.~~

~~The fair value adjustment on~~loan portfolio. This reduction was partially offset by additional allowance for credit loss required by newly acquired loans ~~consists~~purchased with credit deterioration.

At September 30, 2021, nonperforming and restructured assets decreased $4.7 million to $77.9 million compared to December 31, 2020. The Company’s level of ~~an interest rate component~~nonperforming and restructured assets has continued to ~~adjust the effective rates on the loans~~be relatively low, equating to ~~market rates and a credit component to adjust for estimated credit exposures in the acquired loans. The interest rate component was $846,000~~0.69% of total assets at September 30, ~~2020~~2021 and ~~$1.7~~0.90% of total assets at December 31, 2020.

Nonaccrual loans totaled $26.6 million at September 30, 2021, compared to $37.5 million at December 31, ~~2019. The credit component of the adjustment was $2.8 million at~~2020. At September 30, ~~2020 and $6.8~~2021, the Company’s nonaccrual loans decreased $10.9 million atfrom December 31, ~~2019. These fair value adjustments will be accreted~~2020, due to ~~income over the remaining life~~resolutions of ~~the loans.~~

~~Nonaccrual~~several loans, ~~totaled $82.4~~which were offset by $7.2 million ~~at September 30, 2020, compared to $18.0 million at the end~~ of ~~2019. The increase in~~ nonaccrual loans ~~was due to further deterioration~~acquired from The First National Bank and Trust Company of ~~the financial condition of commercial loans.~~Vinita, Oklahoma. The Company’s nonaccrual loans are primarily commercial and ~~real~~agricultural non-real estate ~~loans.~~and farmland. 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 orand principal ~~or both~~ 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 if the full collection of the remaining principal balance is~~

~~reasonably expected. Otherwise, interest income is not recognized until the principal balance is fully collected.~~basis. Had nonaccrual loans performed in accordance with their original contractual terms, the Company would have recognized additional interest income of approximately $1.7 million for the nine months ended September 30, 2021 and $2.1 million for the nine months ended September 30, ~~2020 and $1.4 million for the nine months ended September 30, 2019.~~2020. Only a small amount of this interest is expected to be ultimately collected. Approximately $3.1 million of nonaccrual loans were guaranteed by government agencies at September 30, 2021.

~~Troubled debt restructured~~Restructured loans totaled ~~$2.8~~$7.1 million at September 30, ~~2020,~~2021 compared to ~~$18.0~~$7.8 million at ~~the end of 2019. The decrease in troubled debt restructurings was due primarily to a review of troubled debt restructurings during the period and the related performance of the borrowers.~~December 31, 2020. The Company charges interest on principal balances outstanding during deferral periods. As a result, the current and future financial effects of the recorded balance of loans considered to be troubled debt restructurings whose terms were modified during the period were not considered to be material.

The classification of a loan as nonperforming 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 declines. The above normal risk associated with nonperforming loans has been considered in the determination of the allowance for credit losses. At September 30, 2021, the allowance for credit losses as a percentage of nonperforming and restructured loans was 222.46%, compared to 182.26%, at December 31, 2020. The level of nonperforming loans and credit losses could rise over time as a result of adverse economic conditions.

Other real estate owned (OREO) and repossessed assets totaled $39.1 million at September 30, 2021, compared to $32.5 million at December 31, 2020. Other real estate owned consists of properties acquired through foreclosure proceedings or acceptance of a deed in lieu of foreclosure and premises held for sale. At September 30, 2021, the Company’s OREO increased $6.8 million from December 31, 2020, and included approximately $4.0 million from the repossession of one commercial real estate property, $2.4 million from the decommissioning of the Company’s previous headquarters, and approximately $600,000 acquired from The First National Bank and Trust Company of Vinita, Oklahoma. As of both September 30, 2021 and December 31, 2020, other real estate owned included a commercial real estate property recorded at approximately $28 million. Other real estate owned and repossessed assets are carried at the lower of the book values of the related loans or fair values based upon appraisals, less estimated costs to sell. Write-downs arising at the time of reclassification of such properties from loans to other real estate owned 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 other

real estate owned. Decreases in values of properties subsequent to their classification as other real estate owned are charged to operating expense.

Identifiable intangible assets and goodwill totaled ~~$4.9~~$168.2 million and $168.9 million at September 30, 2021 and December 31, 2020, ~~compared~~respectively.

On May 20, 2021, the Company recorded a core deposit intangible of approximately $1.7 million because of the purchase of assets and assumption of liabilities from The First National Bank and Trust Company of Vinita, Oklahoma. See Note (2) of the Notes to ~~$6.1~~Consolidated Financial Statements for disclosure regarding the Company’s recent developments, including mergers and acquisitions.

Other assets includes the cash surrender value of key-man life insurance policies totaling $82.1 million at September 30, 2021 and $80.7 million at December 31, ~~2019. Other real estate owned and repossessed~~2020.

Equity securities are reported in other assets ~~decreased during 2020 primarily due to~~on the ~~sale of one property.~~

Potential problem loans are performing loans to borrowers with a weakened financial condition, or which are experiencing unfavorable trends in their financial condition, which causes management to have concerns as to the ability of such borrowers to comply with the existing repayment terms.balance sheet. The Company ~~had approximately $9.6~~invests in equity securities without readily determinable fair values. 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. The balance of equity securities was $23.5 million ~~of these loans~~ at September 30, ~~2020, compared to $13.7~~2021 and $21.2 million at December 31, ~~2019. Potential problem loans~~2020. The Company reviews its portfolio of equity securities for impairment at least quarterly. The balance of these equity securities included equity interests of previous borrowers in the oil and gas industry, which were received through bankruptcy proceedings, which totaled approximately $13.1 million at September 30, 2021 and approximately $11.1 million at December 31, 2020.

During 2021, there have not been any material changes in the Company’s low income housing tax credit investments and new market tax credit investments, which are ~~not~~ included in ~~nonperforming and restructured loans. In general,~~other assets on the Company’s balance sheet. 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, 2020, for disclosures regarding these loans are adequately collateralized and have no specific identifiable loss. Loans which are considered to have identifiable loss potential are placed on nonaccrual status, are allocated a specific allowance for loss or are directly charged-down, and are reported as nonperforming.investments.

~~Deposits~~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 federal funds lines of credit with other banks and could utilize the sale of loans, securities and liquidation of other assets as sources of liquidity and funding.

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, 2020.

At September 30, ~~2020,~~2021, deposits totaled ~~$8.5~~$10.0 billion, an increase of ~~$1.0~~$1.9 billion or ~~13.5%~~23.9% from the December 31, ~~2019~~2020 total. The increase in deposits was primarily related to deposits of proceeds from the PPP and ~~inflow of existing customer deposits.~~other government stimulus payments. 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 ~~98.2%~~98.5% at September 30, ~~2020~~2021 and ~~98.4%~~98.2% at December 31, ~~2019.~~2020. Noninterest-bearing deposits to total deposits were ~~44.3%~~46.0% at September 30, ~~2020,~~2021, compared to ~~39.5%~~47.0% at December 31, ~~2019.~~2020.

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 to various institutional accredited investors. See Note (7) of the Notes to Consolidated Financial Statements for a complete discussion of the Company’s subordinated debt.

Short-term borrowings, consisting primarily of federal funds purchased and repurchase agreements are another source of funds for the Company. The level of these borrowings is determined by various factors, including customer demand and the Company’s ability to earn a favorable spread on the funds obtained. Short-term borrowings were ~~$300,000~~$3.5 million at September 30, ~~2020,~~2021, compared to $1.1 million at December 31, ~~2019.~~2020.

The Company has a line of credit from the Federal Home Loan Bank (“FHLB”) of Topeka, Kansas to use for liquidity or to match-fund certain long-term fixed-rate loans. The Company’s assets, including residential first mortgages of ~~$836.6~~$862.4 million, are pledged as collateral for the borrowings under the line of credit. As of September 30, ~~2020~~2021 and December 31, ~~2019,~~2020, the Company had no advances outstanding under the line of credit from FHLB. In addition, the Company had a revolving line of credit with another financial institution with the ability to draw up to $10.0 million with no advances outstanding. This line of credit had a variable rate based on prime rate minus 25 basis points and matured in the third quarter of 2020.

Stockholders’ equity totaled ~~$1.0~~$1.1 billion at both September 30, ~~2020~~2021 and December 31, ~~2019.~~2020. In addition to net income of ~~$64.2~~$129.5 million, other changes in stockholders’ equity during the nine months ended September 30, ~~2020~~2021 included ~~$858,000~~$1.7 million related to common stock issuances ~~$1.3~~and $1.6 million related to stock-based compensation, ~~$2.3 million change in accounting principle related to CECL and a $5.3 million increase in other comprehensive income,~~ that were partially offset by ~~$32.0~~$34.1 million in dividends, $11.7 million from the repurchase of the Company's stock, $5.5 million from settlement of options in cash, and ~~$3.1~~a $2.6 million decrease in ~~common stock repurchases.~~other comprehensive income. The Company’s leverage ratio and total risk-based capital ratios at September 30, ~~2020,~~2021, were well in excess of the regulatory requirements.

See Note ~~(8)~~(9) of the Notes to Consolidated Financial Statements for a discussion of capital ~~ratio~~ratios and requirements.

There have not been any material changes in the ~~resources required for scheduled repayments of contractual obligations from the table of Contractual Cash Obligations~~Company’s liquidity 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, ~~2019.~~ 2020.

~~Except as set forth below, there~~There have been no significant changes in the ~~Registrant’s~~Company’s disclosures regarding market risk since December 31, ~~2019,~~2020, the date of its most recent annual report to stockholders.

The Company seeks to reduce volatility in its net interest margin and net interest income through periods of changing interest rates. Accordingly, the Company’s interest rate sensitivity and liquidity are monitored on an ongoing basis by its Asset and Liability Committee (“ALCO”). The ALCO establishes risk measures, limits and policy guidelines for managing the amount of interest rate risk and its effect on net interest income and capital. A variety of tools are used to evaluate the magnitude of interest rate risk, the distribution of risk, the level of risk over time and the exposure to changes in certain interest rate relationships.

The ALCO also utilizes an earnings simulation model as a quantitative tool in measuring the amount of interest rate risk associated with changing market rates. The model quantifies the effects of various interest rate scenarios on projected net interest income over the next 12 months. These simulations incorporate assumptions regarding changes in interest rates and the maturity and repricing of earning assets and interest-bearing liabilities.

The ALCO uses gap analysis to monitor interest rate sensitivity based on the maturity and repricing frequencies of its earning assets and interest-bearing liabilities. This analysis indicates that the Company’s position is asset-sensitive, with a positive gap of $356 million for the zero to 12-month interval at September 30, 2020, which was 4.19% of total assets, compared to a positive gap of $172 million for the zero to 12-month interval at December 31, 2019, which was 2.30% of total assets.

The ALCO continuously monitors and manages the balance between interest rate-sensitive assets and liabilities. The objective is to manage the impact of fluctuating market rates on net interest income within acceptable levels. In order to meet this objective, management may lengthen or shorten the duration of assets or liabilities.

As of September 30, 2020, the model simulations projected that a 100 and 200 basis point increase would result in positive variance in net interest income of 1.05% and 2.94%, respectively, relative to the base case over the next 12 months.

As of December 31, 2019, the model simulations projected that a 100 and 200 basis point increase would result in positive variance in net interest income of 1.97% and 4.08%, respectively, relative to the base case over the next 12 months. Conversely, the model simulation projected that a decrease in interest rates of 100 basis points would result in a negative variance in net interest income of 2.84% relative to the base case over the next 12 months.

~~The~~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 Executive Chairman, Chief Risk Officer, Chief Internal Auditor, Chief Asset Quality Officer, Controller, General Counsel and Vice President of Corporate Finance, have evaluated, as of the last day of the period covered by this report, the Company’s disclosure controls and ~~procedures.~~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.

~~The adoption of ASC 326 required~~Changes in Internal Control Over Financial Reporting. During the ~~implementation of new accounting policies and procedures, including enhancements~~period to ~~our information systems,~~ which ~~changed~~this report relates, there have not been any changes in the Company’s internal controls over financial reporting ~~for~~(as defined in Rule 13a-15(f) and 15d-15(f) under the analysis of the allowance for credit losses and related disclosures. Other than the change related to the adoption of ASC 326, there were no changes during the period covered by this Quarterly Report on Form 10-Q in the Company’s internal controls over financial reportingExchange Act) that have materially affected, or are reasonably likely to materially affect, ~~those~~such controls.

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.

Except as set forth below, as of September 30, ~~2020,~~2021, 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, ~~2019:~~2020:

The COVID-19 pandemic has impacted our business, and the ultimate impact on our business and financial results will depend on future developments, which are highly uncertain and cannot be predicted, including the scope and duration of the pandemic and actions taken by governmental authorities in response to the pandemic.

~~With the lack of precedent, we are unable to predict with a high level of confidence how the COVID-19 pandemic will affect our business.~~ The ~~COVID-19 pandemic has negatively impacted~~Durbin Amendment is a provision in the ~~global economy, disrupted global supply chains, lowered equity market valuations, created significant volatility and disruption in financial markets, and increased unemployment levels. In addition,~~larger Dodd-Frank Act that gave the pandemic has resulted in closures of many businesses. As a result, the demand for our products and services may be significantly impacted. Furthermore, the pandemic has influenced and could further influence the recognition of credit losses in our loan portfolios and has increased and could further increase our allowance for credit losses, particularly if businesses remain closed or otherwise adversely affected for an extended period of time, or even permanently. In addition, we are a lender for the Paycheck Protection Program ("PPP") of the Small Business Administration (SBA) and other SBA, Federal Reserve ~~or United States Treasury programs that have been or~~the authority to establish rates on debit card transactions. The Durbin Amendment aims to control debit card interchange fees and restrict anti-competitive practices. The law applies to banks with over $10 billion in assets and limits what these banks may ~~be created in~~charge for debit card interchange fees. At December 31, 2020, the ~~future in response to the pandemic. These programs are new, the terms are subject to political influence and their effects on our business are uncertain.~~ ~~Through~~Company’s assets did not exceed $10 billion, but at September 30, ~~2020, we approved 8,476 loans totaling approximately $831.7 million, net of unamortized processing fees of $22.5 million.~~ ~~The extent to which~~2021 the COVID-19 pandemic impacts our business, results of operations, and financial condition, as well as our regulatory capital and liquidity ratios, will depend on future developments, which are highly uncertain and cannot be predicted.

In addition, due to the impacts of the COVID-19 pandemic, the Company has approximately $104.5 million in modified loans, most of which are secured by commercial real estate, as of September 30, 2020. These modifications were undertaken in response to Section 4013 of the CARES Act and the regulatory intent outlined in the Interagency Statement on Loan Modifications by Financial Institutions Working with Customers Affected by the Coronavirus and to provide businesses financial flexibility until the economy has time to recover to a more normal level of activity. However, these modifications, which typically involve payment modifications and forbearance, also have the effect of delaying recognition of loans that may ultimately be permanently impaired. Consequently, it is reasonable to expect that when temporary regulatory accounting relief and payment modifications cease, there could be a marked increase in credit impairment and restructured loans. The timing and extent of such consequences are impossible to ascertain at this time and are dependent on the duration of the COVID-19 pandemic, the level and success of the government’s economic stimulus, and further regulatory guidance.

Company’s assets did exceed $10 billion. Prior to the COVID-19 pandemic, there was ~~little or no~~minimal likelihood that the Company would surpass $10 billion in total assets for several years. However, with the CARES Act, including PPP loans, stimulus payments to households, and artificially high household savings rates, our deposits and assets have grown dramatically beyond ~~any~~ reasonably foreseeable levels. To the extent the COVID-19 pandemic ~~continues~~ and the ~~government response to~~effects of the aforementioned stimulus programs continue, it ~~continue in the same or similar manner,~~is likely the Company ~~has an increasingly heightened possibility of exceeding~~will exceed $10 billion in total assets at December 31, ~~2020.~~2021. Pursuant to the Durbin Amendment of the Dodd-Frank Act, based on current run rates, this would trigger an approximate ~~loss~~reduction of annual pretax income from debit card interchange fees of between ~~$16 and $18~~$20 to $22 million ~~in subsequent years.~~beginning July 1, 2022. The Company is ~~developing strategies~~undergoing efforts through the use of our existing sweep product to ~~avoid exceeding~~reduce total assets below $10 billion ~~in assets and the loss of interchange income,~~at December 31, 2021, but the success of these ~~strategies~~efforts is uncertain.

On November 5, 2021, the Occupational Safety and Health Administration issued an interim final rule that requires employers with 100 or more employees to develop, to implement and to enforce a mandatory COVID-19 vaccination policy, unless unvaccinated employees comply with masking and testing requirements. Such requirements are currently scheduled to be effective on January 4, 2022. The Company is evaluating the effect of such mandate on its workforce, but is concerned that, if the mandate becomes effective, it may have a material adverse effect on employee retention and morale.

Significant uncertainties as to future economic conditions exist, and we have taken deliberate actions in response. Additionally, the economic pressures have contributed to an increased provision for credit losses for 2020. We continue to monitor the impact of the COVID-19 pandemic closely, as well as any effects that may result from the CARES Act; however, the extent to which the COVID-19 pandemic will impact our operations and financial results during the remainder of 2020 is highly uncertain.

The following table provides information with respect to purchases made by or on behalf of the Company or any “affiliated purchaser” (as defined in Rule 10b-18(a)(3) under the Securities Exchange Act of 1934), of the Company’s common stock during the three months ended September 31, 2021.

(1) In November 1999, the Company adopted the Stock Repurchase Program (the “SRP”). The timing, price and amount of stock repurchases under the SRP may be determined by management and approved by the Company’s Executive Committee. During September 2021, the SRP was amended to permit the repurchase of an additional 650,000 shares.

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.


Oklahoma		73-1221379
(State or other Jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)


~~101~~100 N. Broadway Ave., Oklahoma City, Oklahoma		73102-8405
(Address of principal executive offices)		(Zip Code)


	September 30,			December 31,			September 30,			December 31,
		2020			2019		2021			2020
	(unaudited)			(see Note 1)			(unaudited)			(see Note 1)
ASSETS
Cash and due from banks	$	226,062		$	222,043		$	274,057		$	280,518
Interest-bearing deposits with banks		1,609,462			1,646,238			3,836,809			1,336,394
Federal funds sold		—			1,000
Securities held for investment (fair value: $3,011 and $1,903, respectively)		2,971			1,903
Securities available for sale at fair value		593,970			489,723
Debt securities held for investment (fair value: $2,984 and $2,984, respectively)								2,982			2,964
Debt securities available for sale at fair value								526,502			552,232
Loans held for sale		48,601			11,001			20,950			53,719
Loans (net of unearned interest)		6,612,093			5,662,143
Loans held for investment (net of unearned interest)								6,016,936			6,394,506
Allowance for credit losses		(106,126	)		(54,238	)		(86,463	)		(91,366	)
Loans, net of allowance for credit losses		6,505,967			5,607,905			5,930,473			6,303,140
Premises and equipment, net		247,494			206,275			268,160			261,677
Other real estate owned		4,739			5,607			38,932			32,179
Intangible assets, net		19,914			22,608			18,325			18,999
Goodwill		149,922			148,604			149,922			149,922
Accrued interest receivable and other assets		209,766			202,851			235,659			220,613
Total assets	$	9,618,868		$	8,565,758		$	11,302,771		$	9,212,357

LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Noninterest-bearing	$	3,759,305		$	2,956,370		$	4,594,324		$	3,790,900
Interest-bearing		4,736,586			4,527,265			5,397,720			4,273,804
Total deposits		8,495,891			7,483,635			9,992,044			8,064,704
Short-term borrowings		300			1,100			3,500			1,100
Accrued interest payable and other liabilities		52,121			49,230			74,380			51,864
Junior subordinated debentures		26,804			26,804
Subordinated debt								85,973			26,804
Total liabilities		8,575,116			7,560,769			10,155,897			8,144,472

Stockholders' equity:
Senior preferred stock, $1.00 par; 10,000,000 shares authorized; NaN issued		—			—
Cumulative preferred stock, $5.00 par; 900,000 shares authorized; NaN issued		—			—
Common stock, $1.00 par, 40,000,000 shares authorized; shares issued and outstanding: 32,679,191 and 32,694,268, respectively		32,679			32,694
Senior preferred stock, $1.00 par; 10,000,000 shares authorized; NaN issued								—			—
Cumulative preferred stock, $5.00 par; 900,000 shares authorized; NaN issued								—			—
Common stock, $1.00 par, 40,000,000 shares authorized; shares issued and outstanding: 32,572,217 and 32,719,852, respectively								32,572			32,720
Capital surplus		155,431			153,353			158,877			156,574
Retained earnings		846,934			815,488			950,560			871,161
Accumulated other comprehensive income, net of income tax of $2,943 and $1,187, respectively		8,708			3,454
Accumulated other comprehensive income, net of income tax of $1,533 and $2,513, respectively								4,865			7,430
Total stockholders' equity		1,043,752			1,004,989			1,146,874			1,067,885
Total liabilities and stockholders' equity	$	9,618,868		$	8,565,758		$	11,302,771		$	9,212,357


	Three Months Ended						Nine Months Ended						Three Months Ended						Nine Months Ended
	September 30,						September 30,						September 30,						September 30,
		2020			2019			2020			2019		2021			2020			2021			2020
INTEREST INCOME
Loans, including fees	$	76,612		$	75,260		$	231,985		$	214,980		$	80,249		$	76,612		$	240,358		$	231,985
Securities:
Taxable		2,032			2,361			6,665			10,551			1,484			2,032			4,779			6,665
Tax-exempt		131			103			383			347			35			131			175			383
Federal funds sold		—			1			—			3
Interest-bearing deposits with banks		422			8,704			5,586			24,587			1,441			422			2,861			5,586
Total interest income		79,197			86,429			244,619			250,468			83,209			79,197			248,173			244,619
INTEREST EXPENSE
Deposits		2,854			13,644			16,004			40,983			1,988			2,854			6,313			16,004
Short-term borrowings		—			7			8			29			—			—			1			8
Junior subordinated debentures		491			491			1,474			1,474
Subordinated debt														1,031			491			2,100			1,474
Total interest expense		3,345			14,142			17,486			42,486			3,019			3,345			8,414			17,486
Net interest income		75,852			72,287			227,133			207,982			80,190			75,852			239,759			227,133
Provision for credit losses		18,740			2,758			57,656			6,875
Net interest income after provision for credit losses		57,112			69,529			169,477			201,107
Provision for (benefit from) credit losses														1,483			18,740			(8,466	)		57,656
Net interest income after provision for/(benefit from) credit losses														78,707			57,112			248,225			169,477
NONINTEREST INCOME
Trust revenue		3,131			3,490			10,154			9,917			3,210			3,131			9,576			10,154
Service charges on deposits		19,078			19,866			54,642			56,643			21,706			19,078			61,330			54,642
Securities transactions (includes 0 accumulated other comprehensive income reclassifications)		—			—			(545	)		821			150			—			417			(545	)
Income from sales of loans		1,873			964			4,215			2,530			1,594			1,873			5,737			4,215
Insurance commissions		5,197			5,535			15,316			15,220			6,666			5,197			17,670			15,316
Cash management		3,701			4,430			12,276			12,608			3,127			3,701			9,198			12,276
(Loss)/gain on sale of other assets		(15	)		(1	)		120			(12	)
Gain on sale of other assets														34			(15	)		2,746			120
Other		1,610			1,343			5,624			3,978			3,299			1,610			17,665			5,624
Total noninterest income		34,575			35,627			101,802			101,705			39,786			34,575			124,339			101,802
NONINTEREST EXPENSE
Salaries and employee benefits		41,995			40,354			123,977			112,649			42,267			41,995			123,836			123,977
Occupancy, net		4,503			3,386			11,888			8,966			5,086			4,503			13,962			11,888
Depreciation		3,795			3,268			10,830			9,268			4,207			3,795			12,217			10,830
Amortization of intangible assets		968			842			2,900			2,359			755			968			2,357			2,900
Data processing services		1,669			1,467			4,990			4,209			1,734			1,669			5,072			4,990
Net loss/(income) from other real estate owned		196			26			(1,951	)		(361	)		1,810			196			6,677			(1,951	)
Marketing and business promotion		1,485			2,047			5,325			6,227			1,796			1,485			5,323			5,325
Deposit insurance		723			(81	)		1,224			996			846			723			2,488			1,224
Other		10,749			10,882			32,936			30,692			11,713			10,749			37,268			32,936
Total noninterest expense		66,083			62,191			192,119			175,005			70,214			66,083			209,200			192,119
Income before taxes		25,604			42,965			79,160			127,807			48,279			25,604			163,364			79,160
Income tax expense		4,714			9,597			14,932			28,435			9,529			4,714			33,902			14,932
Net income	$	20,890		$	33,368		$	64,228		$	99,372		$	38,750		$	20,890		$	129,462		$	64,228
NET INCOME PER COMMON SHARE
Basic	$	0.64		$	1.02		$	1.97		$	3.04		$	1.18		$	0.64		$	3.95		$	1.97
Diluted	$	0.63		$	1.00		$	1.94		$	2.98		$	1.16		$	0.63		$	3.88		$	1.94
OTHER COMPREHENSIVE (LOSS) GAIN
Unrealized (loss) gain on securities, net of tax of $335, $1, $(1,756) and $(1,979) respectively		(982	)		(26	)		5,254			5,768
Unrealized (losses)/gains on debt securities, net of tax of $172, $335, $980 and $(1,756) respectively														(552	)		(982	)		(2,565	)		5,254
Comprehensive income	$	19,908		$	33,342		$	69,482		$	105,140		$	38,198		$	19,908		$	126,897		$	69,482


	Three Months Ended						Nine Months Ended						Three Months Ended						Nine Months Ended
	September 30,						September 30,						September 30,						September 30,
	2020			2019			2020			2019			2021			2020			2021			2020
COMMON STOCK
Issued at beginning of period	$	32,663	��	$	32,640		$	32,694		$	32,604		$	32,785		$	32,663		$	32,720		$	32,694
Shares issued for stock options		16			4			44			40			—			16			65			44
Shares acquired and canceled		—			—			(59	)		—			(213	)		—			(213	)		(59	)
Issued at end of period	$	32,679		$	32,644		$	32,679		$	32,644		$	32,572		$	32,679		$	32,572		$	32,679
CAPITAL SURPLUS
Balance at beginning of period	$	154,692		$	150,995		$	153,353		$	149,709		$	158,322		$	154,692		$	156,574		$	153,353
Common stock issued for stock options		306			128			813			873			—			306			1,657			813
Net cash settlement of options														—			—			(958	)		—
Stock-based compensation arrangements		433			347			1,265			888			555			433			1,604			1,265
Balance at end of period	$	155,431		$	151,470		$	155,431		$	151,470		$	158,877		$	155,431		$	158,877		$	155,431
RETAINED EARNINGS
Balance at beginning of period	$	837,154		$	769,090		$	815,488		$	722,615		$	935,067		$	837,154		$	871,161		$	815,488
Net income		20,890			33,368			64,228			99,372			38,750			20,890			129,462			64,228
Cumulative effect of change in accounting principle, net of tax of $925 (Note 1)		—			—			2,270			—
Dividends on common stock ($0.34, $0.32, $0.98 and $0.92 per share, respectively)		(11,110	)		(10,449	)		(32,013	)		(29,978	)
Cumulative effect of change in accounting principle, net of tax of $925														—			—			—			2,270
Dividends on common stock ($0.36, $0.34, $1.04 and $0.98 per share, respectively)														(11,806	)		(11,110	)		(34,091	)		(32,013	)
Net cash settlement of options														—			—			(4,521	)		—
Common stock acquired and canceled		—			—			(3,039	)		—			(11,451	)		—			(11,451	)		(3,039	)
Balance at end of period	$	846,934		$	792,009		$	846,934		$	792,009		$	950,560		$	846,934		$	950,560		$	846,934
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Unrealized gain/(losses) on securities:
Unrealized (losses)/gains on securities:
Balance at beginning of period	$	9,690		$	3,655		$	3,454		$	(2,139	)	$	5,417		$	9,690		$	7,430		$	3,454
Net change		(982	)		(26	)		5,254			5,768			(552	)		(982	)		(2,565	)		5,254
Balance at end of period	$	8,708		$	3,629		$	8,708		$	3,629		$	4,865		$	8,708		$	4,865		$	8,708
Total stockholders’ equity	$	1,043,752		$	979,752		$	1,043,752		$	979,752		$	1,146,874		$	1,043,752		$	1,146,874		$	1,043,752


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


Large accelerated filer	☒	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

Emerging growth company	☐


Item			Page			Page
		PART I – Financial Information			PART I – Financial Information
1.		Financial Statements (Unaudited)	2		Financial Statements (Unaudited)	2
		Consolidated Balance Sheets	2		Consolidated Balance Sheets	2
		Consolidated Statements of Comprehensive Income	3		Consolidated Statements of Comprehensive Income	3
		Consolidated Statements of Shareholders’ Equity	4		Consolidated Statements of Shareholders’ Equity	4
		Consolidated Statements of Cash Flow	5		Consolidated Statements of Cash Flow	5

		Notes to Consolidated Financial Statements	6		Notes to Consolidated Financial Statements	6
2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations	33		Management’s Discussion and Analysis of Financial Condition and Results of Operations	30
3.		Quantitative and Qualitative Disclosure About Market Risk	42		Quantitative and Qualitative Disclosure About Market Risk	40
4.		Controls and Procedures	43		Controls and Procedures	40

		PART II – Other Information			PART II – Other Information
1.		Legal Proceedings	44		Legal Proceedings	41
1A.		Risk Factors	44		Risk Factors	41
2.		Unregistered Sales of Equity Securities	44		Unregistered Sales of Equity Securities	41
3.		Defaults Upon Senior Securities	44		Defaults Upon Senior Securities	41
4.		Mine Safety Disclosures	45		Mine Safety Disclosures	41
5.		Other Information	45		Other Information	41
6.		Exhibits	46		Exhibits	42
Signatures	Signatures		48	Signatures		44

	January 1, 2020
	As Reported Under ASC 326		Pre ASC 326 Adoption		Impact of ASC 326 Adoption
	(Dollars in thousands)
BancFirst
Real estate:
Commercial real estate owner occupied	$	2,819	$	5,625	$	(2,806	)
Commercial real estate non-owner occupied		2,851		8,358		(5,507	)
Construction and development < 60 months		1,158		2,214		(1,056	)
Construction residential real estate < 60 months		1,155		1,933		(778	)
Residential real estate first lien		4,861		8,692		(3,831	)
Residential real estate all other		1,359		2,767		(1,408	)
Farmland		1,413		2,821		(1,408	)
Commercial and agricultural non-real estate		27,194		15,345		11,849
Consumer non-real estate		2,630		3,252		(622	)
Other loans		2,516		2,632		(116	)
Pegasus Bank		3,087		599		2,488
Allowance for credit losses on loans	$	51,043	$	54,238	$	(3,195	)

~~Loan Segment~~	~~Life (in years)~~
~~BancFirst~~
~~Real estate:~~
~~Commercial real estate owner occupied~~		8
~~Commercial real estate non-owner occupied~~		6
~~Construction and development < 60 months~~		3
~~Construction residential real estate < 60 months~~		1
~~Residential real estate first lien~~		13
~~Residential real estate all other~~		6
~~Farmland~~		12
~~Commercial and agricultural non-real estate~~		3
~~Consumer non-real estate~~		4
~~Other loans~~		9
~~Pegasus Bank~~		4



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
September 30, 2021	(Dollars in thousands)
Mortgage backed securities (1)	$	37	$	2	$	—		$	39
States and political subdivisions		2,445		—		—			2,445
Other securities		500		—		—			500
Total	$	2,982	$	2	$	—		$	2,984
December 31, 2020
Mortgage backed securities (1)	$	59	$	3	$	—		$	62
States and political subdivisions		2,405		18		(1	)		2,422
Other securities		500		—		—			500
Total	$	2,964	$	21	$	(1	)	$	2,984

Other loans
Grade 1	883,501	30,094	27,022	21,115	18,894	14,807	21,178	1,016,611
Grade 2	—	—	17	2,963	1,163	1,978	753	6,874
Grade 3	—	—	12	—	—	66	—	78
Grade 4	—	—	—	13	28	69	866	976
Total other loans	883,501	30,094	27,051	24,091	20,085	16,920	22,797	1,024,539
Pegasus Bank
Grade 1	77,749	71,121	38,632	29,364	13,934	42,795	85,867	359,462
Grade 2	19,119	32,094	4,321	20,939	3,942	7,285	76,104	163,804
Grade 3	—	—	—	—	—	1,331	—	1,331
Total Pegasus Bank	96,868	103,215	42,953	50,303	17,876	51,411	161,971	524,597
Total loans held for investment	$2,470,333	$1,241,465	$690,620	$465,014	$350,781	$673,255	$720,625	$6,612,093

	Nine Months Ended September 30,
	2020		2019
	(Dollars in thousands)
Other real estate owned	$	3,458	$	2,972
Repossessed assets		965		946
Total	$	4,423	$	3,918

							Other		Executive,
	Metropolitan		Community		Pegasus		Financial		Operations
	Banks		Banks		Bank		Services		& Support		Consolidated
	(Dollars in thousands)
Nine months ended September 30, 2020
Balance at beginning of period	$	13,767	$	59,894	$	68,855	$	5,464	$	624	$	148,604
Acquisitions		—		1,318		—		—		—		1,318
Balance at beginning and end of period	$	13,767	$	61,212	$	68,855	$	5,464	$	624	$	149,922


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
	(Dollars in thousands)
Rental expense	$	226	$	504	$	1,192	$	1,420

	September 30, 2020
	(Dollars in thousands)
2020 (three months)	$	325
2021		1,242
2022		1,002
2023		569
2024		345
Thereafter		1,165
Total lease payments		4,648
Less imputed Interest		(457	)
Operating lease liability	$	4,191


	September 30, 2021
	(Dollars in thousands)
2021 (three months)	$	362
2022		1,254
2023		750
2024		397
2025		340
Thereafter		926
Total lease payments		4,029
Less imputed Interest		(602	)
Operating lease liability	$	3,427


						Wgtd. Avg.
				Wgtd. Avg.		Remaining	Aggregate
				Exercise		Contractual	Intrinsic
	Options			Price		Term	Value
	(Dollars in thousands, except option data)
Nine Months Ended September 30, 2021
Outstanding at December 31, 2020		1,343,080		$	35.28
Options granted		152,000			61.63
Options exercised		(183,830	)		23.82
Options canceled, forfeited, or expired		(5,000	)		44.23
Outstanding at September 30, 2021		1,306,250			39.93	8.52 Yrs	$	26,379
Exercisable at September 30, 2021		617,500			27.24	7.15 Yrs	$	20,304


	September 30, 2021
	(Dollars in thousands)
Unearned stock-based compensation expense	$	6,921

				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 September 30, 2020:
Total Capital
(to Risk Weighted Assets)-
BancFirst Corporation	$	971,248	15.23%	$	510,168	8.00%	$	669,595	10.50%	N/A		N/A
BancFirst		878,442	15.10%		465,403	8.00%		610,841	10.50%	$	581,754	10.00%
Pegasus Bank		68,927	12.52%		44,046	8.00%		57,811	10.50%		55,058	10.00%
Common Equity Tier 1 Capital
(to Risk Weighted Assets)-
BancFirst Corporation	$	865,208	13.57%	$	286,969	4.50%	$	446,397	7.00%	N/A		N/A
BancFirst		785,357	13.50%		261,789	4.50%		407,227	7.00%	$	378,140	6.50%
Pegasus Bank		64,861	11.78%		24,776	4.50%		38,541	7.00%		35,788	6.50%
Tier 1 Capital
(to Risk Weighted Assets)-
BancFirst Corporation	$	891,208	13.98%	$	382,626	6.00%	$	542,053	8.50%	N/A		N/A
BancFirst		805,357	13.84%		349,052	6.00%		494,491	8.50%	$	465,403	8.00%
Pegasus Bank		64,861	11.78%		33,035	6.00%		46,799	8.50%		44,046	8.00%
Tier 1 Capital
(to Total Assets)-
BancFirst Corporation	$	891,208	9.43%	$	377,862	4.00%	N/A		N/A	N/A		N/A
BancFirst		805,357	9.28%		347,274	4.00%	N/A		N/A	$	434,092	5.00%
Pegasus Bank		64,861	8.65%		30,003	4.00%	N/A		N/A		37,504	5.00%


	Income (Numerator)		Shares (Denominator)		Per Share Amount
	(Dollars in thousands, except per share data)
Three Months Ended September 30, 2021
Basic
Income available to common stockholders	$	38,750		32,744,104	$	1.18
Dilutive effect of stock options		—		523,851
Diluted
Income available to common stockholders plus assumed exercises of stock options	$	38,750		33,267,955	$	1.16
Three Months Ended September 30, 2020
Basic
Income available to common stockholders	$	20,890		32,668,789	$	0.64
Dilutive effect of stock options		—		500,149
Diluted
Income available to common stockholders plus assumed exercises of stock options	$	20,890		33,168,938	$	0.63
Nine Months Ended September 30, 2021
Basic
Income available to common stockholders	$	129,462		32,760,015	$	3.95
Dilutive effect of stock options		—		598,822
Diluted
Income available to common stockholders plus assumed exercises of stock options	$	129,462		33,358,837	$	3.88
Nine Months Ended September 30, 2020
Basic
Income available to common stockholders	$	64,228		32,666,554	$	1.97
Dilutive effect of stock options		—		523,740
Diluted
Income available to common stockholders plus assumed exercises of stock options	$	64,228		33,190,294	$	1.94


	Shares
Three Months Ended September 30, 2021		533,701
Three Months Ended September 30, 2020		377,071
~~Three~~Nine Months Ended September 30, ~~2019~~2021		~~164,696~~161,690
Nine Months Ended September 30, 2020		408,867
~~Nine Months Ended September 30, 2019~~		~~174,489~~


	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(Dollars in thousands)
September 30, 2021
Debt securities available for sale:
U.S. Treasury	$	449,855	$	—	$	—	$	449,855
U.S. federal agencies		—		23,545		—		23,545
Mortgage-backed securities		—		33,561		—		33,561
States and political subdivisions		—		5,739		320		6,059
Asset backed securities		—		13,482		—		13,482

December 31, 2020
Debt securities available for sale:
U.S. Treasury	$	475,236	$	—	$	—	$	475,236
U.S. federal agencies		—		19,638		—		19,638
Mortgage-backed securities		—		15,696		—		15,696
States and political subdivisions		—		28,793		155		28,948
Asset backed securities		—		—		12,714		12,714


	Nine Months Ended September 30,			Twelve Months Ended December 31,			Nine Months Ended September 30,			Twelve Months Ended December 31,
	2020			2019			2021			2020
	(Dollars in thousands)						(Dollars in thousands)
Balance at the beginning of the year	$	12,714		$	13,443		$	12,869		$	12,714
Transfers from level 2		1,643			—
Transfers (to)/from level 2								(12,714	)		1,643
Purchases								240			—
Settlements		(1,117	)		(695	)		(75	)		(1,473	)
Total unrealized gains/(losses)		(10	)		(34	)
Total unrealized losses								—			(15	)
Balance at the end of the period	$	13,230		$	12,714		$	320		$	12,869

	Total Fair Value
	Level 3		Total Fair Value
	(Dollars in thousands)		Level 3
As of and for the Year-to-date Period Ended September 30, 2020
			(Dollars in thousands)
As of and for the Year-to-date Period Ended September 30, 2021
Equity securities	$	9,755	$	23,491
Collateral dependent loans		38,625		11,858
Repossessed assets		186		128
Other real estate owned		3,924		6,824
As of and for the Year-to-date Period Ended December 31, 2019
As of and for the Year-to-date Period Ended December 31, 2020
Equity securities	$	10,121	$	21,203
Collateral dependent loans		45,687		11,347
Repossessed assets		465		291
Other real estate owned		3,024		32,066

	Metropolitan Banks		Community Banks		Pegasus Bank		Other Financial Services		Executive, Operations & Support			Eliminations			Consolidated
																	Metropolitan Banks		Community Banks		Pegasus Bank		Other Financial Services		Executive, Operations & Support			Eliminations			Consolidated
																	(Dollars in thousands)
Three Months Ended September 30, 2021
Net interest income																	$	18,728	$	47,817	$	6,141	$	8,718	$	(1,386	)	$	172		$	80,190
Noninterest income																		5,681		16,978		359		12,198		45,214			(40,644	)		39,786
Income before taxes																		15,072		31,722		2,158		5,069		34,298			(40,040	)		48,279
	(Dollars in thousands)
Three Months Ended September 30, 2020
Net interest income	$	20,476	$	43,369	$	5,078	$	6,816	$	(104	)	$	217		$	75,852	$	20,476	$	43,369	$	5,078	$	6,816	$	(104	)	$	217		$	75,852
Noninterest income		4,735		15,149		379		10,882		25,969			(22,539	)		34,575		4,735		15,149		379		10,882		25,969			(22,539	)		34,575
Income before taxes		6,669		18,257		1,429		3,819		17,158			(21,728	)		25,604		6,669		18,257		1,429		3,819		17,158			(21,728	)		25,604

Three Months Ended September 30, 2019
Nine Months Ended September 30, 2021
Net interest income	$	21,955	$	44,707	$	2,954	$	1,654	$	1,017		$	—		$	72,287	$	57,909	$	135,611	$	17,308	$	30,057	$	(1,784	)	$	658		$	239,759
Noninterest income		4,862		16,823		109		10,916		39,640			(36,723	)		35,627		14,494		48,151		1,098		34,686		156,970			(131,060	)		124,339
Income before taxes		15,670		29,710		1,404		6,239		25,882			(35,940	)		42,965		46,598		98,005		5,750		16,240		126,428			(129,657	)		163,364

Nine Months Ended September 30, 2020
Net interest income	$	64,970	$	131,784	$	15,662	$	14,304	$	196		$	217		$	227,133	$	64,970	$	131,784	$	15,662	$	14,304	$	196		$	217		$	227,133
Noninterest income		14,006		44,843		631		31,100		79,226			(68,004	)		101,802		14,006		44,843		631		31,100		79,226			(68,004	)		101,802
Income before taxes		20,695		58,225		4,372		17,364		44,793			(66,289	)		79,160		20,695		58,225		4,372		17,364		44,793			(66,289	)		79,160

Nine Months Ended September 30, 2019
Net interest income	$	64,746	$	132,889	$	2,954	$	4,236	$	3,157		$	—		$	207,982
Noninterest income		13,706		47,951		109		30,894		113,078			(104,033	)		101,705
Income before taxes		45,905		87,796		1,404		16,310		78,495			(102,103	)		127,807

Total Assets:
September 30, 2020	$	2,952,325	$	5,718,312	$	761,505	$	809,354	$	487,192		$	(1,109,820	)	$	9,618,868
December 31, 2019		2,806,021		4,998,247		738,351		102,442		950,920			(1,030,223	)		8,565,758
September 30, 2021																	$	3,292,422	$	6,558,085	$	1,101,900	$	120,743	$	1,570,064		$	(1,340,443	)	$	11,302,771
December 31, 2020																		2,729,886		5,527,611		919,572		137,122		1,073,507			(1,175,341	)		9,212,357


BANCFIRST CORPORATION
CONSOLIDATED AVERAGE BALANCE SHEETS AND INTEREST MARGIN ANALYSIS
(Unaudited)
Taxable Equivalent Basis
(Dollars in thousands)

	Three Months Ended September 30,
	2021								2020
				Interest		Average						Interest		Average
	Average			Income/		Yield/			Average			Income/		Yield/
	Balance			Expense		Rate			Balance			Expense		Rate
ASSETS
Earning assets:
Loans (1)	$	6,103,533		$	80,370		5.22	%	$	6,671,344		$	76,744		4.56	%
Debt securities – taxable		536,690			1,484		1.10			591,933			2,032		1.36
Debt securities – tax exempt		6,336			45		2.83			33,785			166		1.95
Federal funds sold and interest-bearing deposits with banks		3,682,313			1,441		0.16			1,567,437			422		0.11
Total earning assets		10,328,872			83,340		3.20			8,864,499			79,364		3.55
Nonearning assets:
Cash and due from banks		269,153								241,160
Interest receivable and other assets		696,567								619,570
Allowance for credit losses		(83,969	)							(88,823	)
Total nonearning assets		881,751								771,907
Total assets	$	11,210,623							$	9,636,406
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing liabilities:
Transaction deposits	$	881,043		$	161		0.07	%	$	678,447		$	125		0.07	%
Savings deposits		3,825,687			989		0.10			3,393,158			890		0.10
Time deposits		659,490			838		0.50			699,074			1,839		1.04
Short-term borrowings		2,713			—		0.10			3,117			—		0.05
Long-term borrowings		—			—		—			2,119			—		—
Subordinated debt		85,964			1,031		4.76			26,804			491		7.27
Total interest-bearing liabilities		5,454,897			3,019		0.22			4,802,719			3,345		0.28
Interest-free funds:
Noninterest-bearing deposits		4,547,944								3,722,973
Interest payable and other liabilities		61,794								60,574
Stockholders’ equity		1,145,988								1,050,140
Total interest free funds		5,755,726								4,833,687
Total liabilities and stockholders’ equity	$	11,210,623							$	9,636,406
Net interest income				$	80,321							$	76,019
Net interest spread							2.98	%							3.27	%
Effect of interest free funds							0.11	%							0.13	%
Net interest margin							3.09	%							3.40	%

For these computations, information is shown on a taxable-equivalent basis assuming a 21% tax rate.
(1) Nonaccrual loans are included in the average loan balances and any interest on such nonaccrual loans is recognized on a cash basis.


~~(1)~~	~~Nonaccrual loans are included in the average loan balances and any interest on such nonaccrual loans is recognized on a cash basis.~~


								Maximum
						(1	)	Number of Shares
					Total Number of			That May Yet Be
					Shares Purchased			Purchased Under
	Total Number of		Average Price		as Part of Publicly			the Plan at the
Period	Shares Purchased		Paid Per Share		Announced Plan			End of the Period
July 1, 2021 to July 31, 2021		—	$	—		—			62,782
August 1, 2021 to August 31, 2021		—		—		—			62,782
September 1, 2021 to September 30, 2021		212,296		54.94		212,296			500,486


Exhibit Number		Exhibit


2.1		Share Exchange Agreement by and between BancFirst Corporation and Pegasus Bank dated April 23, 2019 (filed as Exhibit 2.1 to the Company’s Current Report on Form 8-K/A dated April 25, 2019 and incorporated herein by reference).
3.1		Amended and Restated By-Laws of BancFirst Corporation (filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K dated ~~March 30, 2015~~July 27, 2021 and incorporated herein by reference).

3.2		~~Certificate of Amendment of the Third Amended and~~ Restated Certificate of Incorporation of BancFirst Corporation dated ~~May 31, 2017~~August 5, 2021. (filed as Exhibit ~~3.1~~3.2 to the ~~Company’s Current~~Company's Quarterly Report on Form ~~8-K dated May 31, 2017 and incorporated herein by reference)~~10-Q for the Quarter Ended June 30, 2021).

4.1		Instruments defining the rights of securities holders (see Exhibits 3.1 and 3.2 above).
4.2		Description of Registrant’s Securities (filed as Exhibit 4.2 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 and incorporated herein by reference).
4.3		Form of Amended and Restated Trust Agreement relating to the 7.20% Cumulative Trust Preferred Securities of BFC Capital Trust II (filed as Exhibit 4.5 to the Company’s registration statement on Form S-3/A, File No. 333-112488 dated February 23, 2004, and incorporated herein by reference).

4.4		Form of 7.20% Cumulative Trust Preferred Security Certificate for BFC Capital Trust II (filed as Exhibit D to Exhibit 4.5 to the Company’s registration statement on Form S-3/A, File No. 333-112488 dated February 23, 2004, and incorporated herein by reference).

4.5		Form of Indenture relating to the 7.20% Junior Subordinated Deferrable Interest Debentures of BancFirst Corporation issued to BFC Capital Trust II (filed as Exhibit 4.1 to the Company’s registration statement on Form S-3, File No. 333-112488 dated February 4, 2004, and incorporated herein by reference).

4.6		Form of Certificate of 7.20% Junior Subordinated Deferrable Interest Debenture of BancFirst Corporation (filed as Exhibit 4.2 to the Company’s registration statement on Form S-3, File No. 333-112488 dated February 4, 2004, and incorporated herein by reference).

4.7		Form of Guarantee of BancFirst Corporation relating to the 7.20% Cumulative Trust Preferred Securities of BFC Capital Trust II (filed as Exhibit 4.7 to the Company’s registration statement on Form S-3/A, File No. 333-112488 dated February 23, 2004, and incorporated herein by reference).

~~4.8~~10.1		Form of Guarantee Agreement by and between CSB Bancshares, Inc. and Wilmington Trust Company (filed as Exhibit 4.7 to the Company’s Quarterly Report on Form 10-Q for the Quarter ended September 30, 2015 and incorporated herein by reference).

~~4.9~~		Form of Indenture relating to the Floating Rate Junior Subordinated Deferrable Interest Debentures of CSB Bancshares, Inc., issued to Wilmington Trust Company (filed as Exhibit 4.8 to the Company’s Quarterly Report on Form 10-Q for the Quarter ended September 30, 2015 and incorporated herein by reference).

~~4.10~~		Form of First Supplemental Indenture relating to the Floating Rate Junior Subordinated Deferrable Interest Debentures by and between Wilmington Trust Company and BancFirst Corporation (filed as Exhibit 4.9 to the Company’s Quarterly Report on Form 10-Q for the Quarter ended September 30, 2015 and incorporated herein by reference).

~~10.1~~		BancFirst Corporation Employee Stock Ownership and Trust Agreement adopted effective January 1, 2015 (filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the Quarter Ended March 31, 2015 and incorporated herein by reference).
10.2		Amendment Number One to the BancFirst Corporation Employee Stock Ownership Plan (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K dated February 26, 2018 and incorporated herein by reference).

10.3		BancFirst Corporation Employee Stock Ownership Plan 2019 Amendment Number One (filed as Exhibit 10.10 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 and incorporated herein by reference).

10.4		Adoption Agreement for the BancFirst Corporation Thrift Plan adopted April 21, 2016 effective January 1, 2016. (filed as Exhibit 10.5 to the Company’s Quarterly Report on Form 10-Q for the Quarter Ended March 31, 2016 and incorporated herein by reference).
~~10.4~~10.5		Amendment Number One to the BancFirst Corporation Thrift Plan. (filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K dated February 26, 2018 and incorporated herein by reference).

Exhibit Number		~~Exhibit~~
~~10.5~~10.6		2019 Amendment BancFirst Corporation Thrift Plan (filed as Exhibit 10.11 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 and incorporated herein by reference).

10.7		2020 Amendment BancFirst Corporation Thrift Plan (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K for dated December 17, 2020 and incorporated herein by reference).


10.8		Purchase and Sale Agreement and Escrow Instructions by and between Cotter Tower – Oklahoma L.P. and BancFirst Corporation. (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K dated September 5, 2018 and incorporated herein by reference).
~~10.6~~10.9		First Amendment to Purchase and Sale Agreement and Escrow Instructions by and between Cotter Tower – Oklahoma L.P. and BancFirst Corporation. (filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K dated September 5, 2018 and incorporated herein by reference).

~~10.7~~10.10		~~Sixth~~ Amended and Restated BancFirst Corporation ~~Directors’ Deferred~~ Stock ~~Compensation Plan~~Option Plan. (filed as ~~Exhibit 10.7~~exhibit 10.10 to the ~~Company’s~~Company's Quarterly Report on Form 10-Q for the Quarter Ended June 30, ~~2019~~2021 and incorporated herein by reference).

~~10.8~~10.11		BancFirst Corporation Employee Stock Ownership Plan 2019 Amendment Number One (filed as Exhibit 10.10 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 and incorporated herein by reference).

~~10.9~~		~~2019 Amendment BancFirst Corporation Thrift Plan (filed as Exhibit 10.11 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 and incorporated herein by reference).~~
~~10.10~~		~~Seventh~~ Amended and Restated BancFirst Corporation Non-Employee Directors’ Stock Option ~~Plan~~Plan. (filed as ~~Exhibit 10.10~~exhibit 10.11 to the ~~Company’s~~Company's Quarterly Report on Form 10-Q for the Quarter Ended June 30, ~~2020~~2021 and incorporated herein by reference).

~~10.11~~10.12		~~Sixteenth~~ Amended and Restated BancFirst Corporation Directors’ Deferred Stock ~~Option Plan~~Compensation Plan. (filed as ~~Exhibit 10.11~~exhibit 10.12 to the ~~Company’s~~Company's Quarterly Report on Form 10-Q for the Quarter Ended June 30, ~~2020~~2021 and incorporated herein by reference).

31.1*10.13		Subordinated Note Purchase Agreement. (filed as exhibit 10.1 to the Company's Current Report on Form 8-K dated June 17, 2021 and incorporated herein by reference).

31.1*		Chief Executive Officer’s Certification pursuant to Rule 13a-14(a) or Rule 15d-14(a).

31.2*		Chief Financial Officer’s Certification pursuant to Rule 13a-14(a) or Rule 15d-14(a).

32*		CEO’s & CFO’s Certification Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS*		Inline XBRL Instance Document - The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

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104*		Cover page Interactive Data File (formatted as Inline XBRL and contained within the Inline XBRL Instance Document in Exhibit 101)


		BANCFIRST CORPORATION
		(Registrant)

Date: November ~~9, 2020~~5, 2021		/s/ David Harlow
		David Harlow
		President
		Chief Executive Officer
		(Principal Executive Officer)

Date: November ~~9, 2020~~5, 2021		/s/ Kevin Lawrence
		Kevin Lawrence
		Executive Vice President
		Chief Financial Officer
		(Principal Financial Officer)