Core Viewpoint - BancFirst Corporation is underperforming in terms of Return on Invested Capital (ROIC) compared to its Weighted Average Cost of Capital (WACC), indicating a need for improved operational efficiency and cost management [2][6]. Financial Performance - BancFirst has a ROIC of 5.56% and a WACC of 12.34%, resulting in a ROIC to WACC ratio of 0.45, which is below the industry standard [2][6]. - Comparatively, Community Trust Bancorp, Inc. (CTBI) has a ROIC of 9.08% and a WACC of 11.56%, leading to a ROIC to WACC ratio of 0.79, indicating better performance than BancFirst [3]. - City Holding Company (CHCO) excels with a ROIC of 39.88% and a WACC of 8.02%, achieving a ROIC to WACC ratio of 4.97, showcasing exceptional efficiency [3][6]. - Westamerica Bancorporation (WABC) has a ROIC of 13.23% and a WACC of 6.72%, resulting in a ROIC to WACC ratio of 1.97, indicating effective returns above its cost of capital [4]. - BOK Financial Corporation (BOKF) has a ROIC of 5.06% and a WACC of 12.56%, with a ROIC to WACC ratio of 0.40, similar to BancFirst's performance [4]. - Arrow Financial Corporation (AROW) shows a ROIC of 27.20% and a WACC of 18.52%, achieving a ROIC to WACC ratio of 1.47, indicating returns above its cost of capital [5].

Financial Performance - BancFirst Corporation reported a net income of $59.5 million, or $1.75 per diluted share, for Q4 2025, an increase from $56.5 million, or $1.68 per diluted share, in Q4 2024[1]. - Net interest income rose to $127.7 million in Q4 2025, up from $115.9 million in Q4 2024, driven by higher loan volume and the acquisition of American Bank of Oklahoma[2]. - Noninterest income increased to $53.3 million in Q4 2025, compared to $47.0 million in the same quarter last year, primarily due to a $4.5 million gain on the sale of Visa B-1 stock[3]. - Net income for the twelve months ended December 31, 2025, was $240.610 million, up from $216.354 million in 2024, representing an increase of 11.2%[22]. - Net interest income for the twelve months ended December 31, 2025, was $490.487 million, an increase of 9.7% compared to $446.874 million in 2024[22]. - Noninterest income totaled $200.141 million for the twelve months ended December 31, 2025, compared to $184.575 million in 2024, marking an increase of 8.4%[22]. Asset Quality - Nonaccrual loans remained stable at $61.1 million, representing 0.72% of total loans, unchanged from the previous year[6]. - The allowance for credit losses to total loans was 1.22% at December 31, 2025, slightly down from 1.24% a year earlier[6]. - The company maintained a healthy allowance for credit losses due to a mixed economic outlook, with net charge-offs of $1.6 million for the quarter[10]. - The provision for credit losses on loans decreased to $4.947 million in 2025 from $9.004 million in 2024, indicating improved asset quality[22]. - Nonaccrual loans as a percentage of total loans were 0.72% in Q4 2025, unchanged from Q4 2024, reflecting consistent asset quality[17]. Growth and Expansion - Total assets reached $14.8 billion as of December 31, 2025, an increase of $1.3 billion from the previous year, with loans totaling $8.5 billion, up $511.4 million[5]. - The acquisition of American Bank of Oklahoma was completed for $33 million, adding approximately $413 million in total assets and $244 million in loans[7]. - Total assets increased to $14,838.89 million in Q4 2025, up from $13,554.31 million in Q4 2024, representing a growth of 9.5% year-over-year[17]. - Total loans reached $8,544.634 million in Q4 2025, up from $8,033.183 million in Q4 2024, reflecting a year-over-year growth of 6.4%[17]. Efficiency and Returns - BancFirst Corporation's return on average assets was 1.60% for Q4 2025, while the return on average stockholders' equity was 13.02%[15]. - The return on average assets improved to 1.70% in 2025, compared to 1.68% in 2024[22]. - The efficiency ratio remained stable at 55.00% in 2025, slightly up from 54.98% in 2024, indicating effective cost management[22]. - The tangible book value per common share increased to $49.20 in Q4 2025 from $42.92 in Q4 2024, a growth of 14.6%[20]. Expenses - Noninterest expense grew to $107.4 million in Q4 2025, up from $92.3 million in Q4 2024, largely due to increased expenses related to other real estate owned and salaries[4].

Financial Performance - Net interest income for the three months ended September 30, 2025, was $125,615 thousand, an increase of 9.4% compared to $114,957 thousand for the same period in 2024[15]. - Net income for the three months ended September 30, 2025, was $62,654 thousand, up 6.0% from $58,903 thousand in the prior year[15]. - Comprehensive income for the nine months ended September 30, 2025, was $201,175 thousand, compared to $185,523 thousand for the same period in 2024, indicating an increase of 8.4%[15]. - Net income for the nine months ended September 30, 2025, was $181,113, an increase of 13.5% compared to $159,878 for the same period in 2024[20]. - Basic net income per common share for the three months ended September 30, 2025, was $1.88, up from $1.78 in the same period of 2024, reflecting a growth of 5.6%[15]. - Diluted earnings per share for the nine months ended September 30, 2025, was $5.36, up from $4.76 in 2024, reflecting an increase of 12.6%[81]. Asset and Liability Management - Total assets increased to $14,198,140 thousand as of September 30, 2025, up from $13,554,314 thousand at December 31, 2024, representing a growth of 4.7%[13]. - Total liabilities increased to $12,415,339 thousand as of September 30, 2025, from $11,933,127 thousand at December 31, 2024, representing a growth of 4.0%[13]. - Total deposits rose to $12,118,387 thousand as of September 30, 2025, compared to $11,718,546 thousand at December 31, 2024, marking an increase of 3.4%[13]. - The total fair value of debt securities available for sale as of September 30, 2025, was $1,015,380, down from $1,210,917 at the end of 2024, a decrease of 16.1%[30]. - The total amount of repossessed assets during the nine months ended September 30, 2025, was $2,245,000, compared to $2,332,000 in 2024[62]. Credit Quality and Losses - The provision for credit losses on loans was $4,222 thousand for the three months ended September 30, 2025, compared to $3,031 thousand for the same period in 2024, indicating a rise of 39.4%[15]. - Nonaccrual loans totaled $57,266 thousand as of September 30, 2025, slightly down from $57,984 thousand at December 31, 2024[47]. - The allowance for credit losses remained stable at $99,511 thousand as of September 30, 2025, compared to $99,497 thousand at December 31, 2024[13]. - The company reported a total allowance for credit losses of $99,497,000 for the nine months ended September 30, 2025, down from $101,882,000 for the same period in 2024, reflecting a decrease of approximately 2.3%[58]. - The total provision for credit losses for the nine months ended September 30, 2025, was $7,988,000, compared to $6,154,000 for the same period in 2024, indicating an increase of approximately 29.8%[58]. Investment and Loans - Total loans held for investment increased to $8,278,247 thousand as of September 30, 2025, compared to $8,025,110 thousand at December 31, 2024, representing a growth of approximately 3.1%[35]. - The total loans held for investment as of September 30, 2025, were $7,959,000,000, showing a significant volume of loans in various categories[48]. - The company reported a significant increase in Grade 1 loans across various categories, indicating strong performance in high-quality lending[51]. - The company did not purchase any credit-deteriorated loans during the nine months ended September 30, 2025, or September 30, 2024, indicating a cautious approach to loan acquisitions[59]. - The company’s gross loans held for investment are categorized by year of origination and internally assigned credit grades, reflecting the credit quality of the portfolio[50]. Capital and Equity - The company’s total stockholders' equity increased to $1.8 billion, up by $161.6 million over December 31, 2024[124]. - As of September 30, 2025, the total capital for BancFirst Corporation was $1,788,184, representing a capital ratio of 19.93%, exceeding the required 8.00%[78]. - Stockholders' equity increased by $161.6 million to $1.8 billion as of September 30, 2025[177]. Noninterest Income and Expenses - Noninterest income for the nine months ended September 30, 2025, totaled $146,808 thousand, an increase of 6.5% from $137,556 thousand in the same period of 2024[15]. - Noninterest expense grew to $92.1 million in Q3 2025, compared to $86.7 million in Q3 2024, primarily due to increased salaries and employee benefits[123]. - Noninterest income for Q3 2025 totaled $49.9 million, up from $48.7 million in Q3 2024, with increases in trust revenue, treasury income, sweep fees, and securities transactions[122]. Tax and Regulatory Compliance - The effective tax rate for the nine months ended September 30, 2025, was 21.2%, a slight decrease from 21.4% in the same period of 2024[146]. - BancFirst Corporation, BancFirst, Pegasus, and Worthington were classified as "well capitalized" under the prompt corrective action provisions as of September 30, 2025[78].

Core Viewpoint - BancFirst reported quarterly earnings of $1.85 per share, missing the Zacks Consensus Estimate of $1.87 per share, but showing an increase from $1.75 per share a year ago, indicating a slight earnings surprise of -1.07% [1] Financial Performance - The company posted revenues of $175.48 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.20% and showing an increase from $163.67 million year-over-year [2] - Over the last four quarters, BancFirst has exceeded consensus revenue estimates four times [2] Stock Performance - BancFirst shares have declined approximately 2.1% since the beginning of the year, contrasting with the S&P 500's gain of 12.7% [3] Future Outlook - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $1.79 on revenues of $173.1 million, and for the current fiscal year, it is $7.21 on revenues of $680.6 million [7] Industry Context - The Banks - Southwest industry, to which BancFirst belongs, is currently ranked in the top 25% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Government and Economic Impact - The U.S. government shutdown is set to extend into next week after the Senate failed to advance both Democratic and Republican funding bills, leaving approximately 750,000 federal workers furloughed [2][9] - The ongoing shutdown marks the third under President Trump's administration, stemming from a deadlock over healthcare provisions and spending cuts [2] Energy Sector - A significant fire at Chevron's El Segundo Refinery (CVX) in California has been contained, but analysts predict a potential 35 to 95 cent per gallon increase in California gasoline prices due to concerns over regional fuel supply [3][9] - The El Segundo refinery processes around 300,000 barrels of crude oil per day and is critical for supplying Southern California's motor vehicle and jet fuels [3] Corporate Developments - 3M (MMM) is reportedly exploring a multibillion-dollar carve-out of its industrials arm, indicating a strategic review within the company [5][9] - Meta (META) and Pembina Pipeline Corp. are nearing an agreement to develop a massive AI data center in Alberta, Canada, supporting Alberta's goal to attract $100 billion in AI data center infrastructure over the next five years [5][9] International Affairs - The International Atomic Energy Agency (IAEA) is engaged in discussions with Russia and Ukraine to restore off-site power to the Zaporizhzhia Nuclear Power Plant (ZNPP), which has been relying on emergency generators for over a week [4][9]

Core Points - The Federal Reserve Board has approved BancFirst Corporation's proposal to acquire AmeriBank Holding Company, which includes the indirect acquisition of American Bank of Oklahoma [1] Group 1 - BancFirst Corporation is based in Oklahoma City, Oklahoma [1] - AmeriBank Holding Company and American Bank of Oklahoma are located in Collinsville, Oklahoma [1]

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

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

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

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