BancFirst (BANF)

Provision for Loan Losses

The provision for loan losses was $10.68 million for 2008, compared to $3.33 million for 2007 and $1.79 million for 2006. The increase in the loan loss provision was required in 2008 due to the deterioration of the credit quality of a small number of specific loans. The decline in quality was the result of declining collateral values and to a lesser extent, nonperformance. Other than the additions in 2008 related to these credits, the amounts provided for the last four years significantly relate to loan growth. The Company establishes an

A-7

Table of Contents

allowance as an estimate of the probable inherent losses in the loan portfolio at the balance sheet date which does not include an estimate of further deterioration in the quality of the portfolio. Net loan charge-offs were $5.51 million for 2008, compared to $1.90 million for 2007 and $2.12 million for 2006. The net charge-offs equated to 0.21%, 0.08% and 0.09% of average loans for 2008, 2007 and 2006, respectively. A more detailed discussion of the allowance for loan losses is provided under “Loans.”

Provision for Loan Losses

The provision for loan losses was $3.33 million for 2007, compared to $1.79 million for 2006 and $4.61 million for 2005. These relatively low levels of provisions reflect the Company’s strong asset quality and a strong local economy. The amounts provided for the last three years significantly relates to loan growth. The Company establishes an allowance as an estimate of the probable inherent losses in the loan portfolio at the balance sheet date. Net loan charge-offs were $1.90 million for 2007, compared to $2.12 million for 2006 and $3.14 million for 2005. These net charge-offs equated to 0.08%, 0.09% and 0.14% of average loans for 2007, 2006 and 2005, respectively. A more detailed discussion of the allowance for loan losses is provided under “Loans.”

A-9

Table of Contents

Provision for Loan Losses

The provision for loan losses decreased to $1.79 million for 2006, compared to $4.61 million for 2005 and $2.70 million for 2004. These relatively low levels of provisions reflect the Company’s strong asset quality and a strong local economy. The amounts provided for the last three years primarily relate to loan growth. The Company establishes an allowance as an estimate of the probable inherent losses in the loan portfolio at the balance sheet date. Net loan charge-offs were $2.12 million for 2006, compared to $3.14 million for 2005 and

A-8

Table of Contents

Index to Financial Statements

$3.10 million for 2004. These net charge-offs equated to 0.09%, 0.14% and 0.16% of average loans for 2006, 2005 and 2004, respectively. A more detailed discussion of the allowance for loan losses is provided under “Loans.”

Provision for Loan Losses

The provision for loan losses increased to $4.67 million for 2005, compared to $2.70 million for 2004 and $3.72 million for 2003. These relatively low levels of provisions reflect the Company’s strong asset quality. The amounts provided for the last three years primarily relate to loan growth offset by improving credit quality. The Company establishes an allowance as an estimate of the probable inherent losses in the loan portfolio at the balance sheet date. Net loan charge-offs were $3.14 million for 2005, compared to $3.10 million for 2004 and $3.21 million for 2003. These net charge-offs were equivalent to 0.14%, 0.16% and 0.18% of average loans for 2005, 2004 and 2003, respectively. A more detailed discussion of the allowance for loan losses is provided under “Loans.”

Provision for Loan Losses

The provision for loan losses decreased to $2.70 million for 2004, compared to $3.72 million for 2003 and $5.28 million for 2002. These relatively low levels of provisions reflect the Company’s strong asset quality. The amounts provided for the last three years primarily relate to loan growth offset by improving credit quality. The Company establishes an allowance as an estimate of the probable inherent losses in the loan portfolio at the balance sheet date. Net loan charge-offs were $3.10 million for 2004, compared to $3.21 million for 2003 and $5.44 million for 2002. These net charge-offs were equivalent to 0.16%, 0.18% and 0.31% of average loans for 2004, 2003 and 2002, respectively. A more detailed discussion of the allowance for loan losses is provided under “Loans.”

A-6

Table of Contents

Index to Financial Statements

Provision for Loan Losses

The provision for loan losses decreased to $2.70 million for 2004, compared to $3.72 million for 2003 and $5.28 million for 2002. These relatively low levels of provisions reflect the Company’s strong asset quality. The amounts provided for the last three years primarily relate to loan growth offset by improving credit quality. The Company establishes an allowance as an estimate of the probable inherent losses in the loan portfolio at the balance sheet date. Net loan charge-offs were $3.10 million for 2004, compared to $3.21 million for 2003 and $5.44 million for 2002. These net charge-offs were equivalent to 0.16%, 0.18% and 0.31% of average loans for 2004, 2003 and 2002, respectively. A more detailed discussion of the allowance for loan losses is provided under “Loans.”

A-6

Table of Contents

Index to Financial Statements