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

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

Financial Data and Key Metrics Changes - The company reported a strong performance in Q1 2024 with earnings of $1.5 per share, exceeding the consensus estimate of $1.39 [19] - Loan growth was significant, increasing by $246 million to a total of $7.9 billion, representing a 3.2% growth [20] - The margin improved to 3.71% in Q1 2024 from 3.67% in Q4 2023, indicating a positive trend in profitability [22] - Non-interest income is expected to decline in 2024 due to the full-year impact of the Durbin amendment, which is projected to be a $23 million pretax reduction [23] Business Line Data and Key Metrics Changes - The company experienced good growth in its trust, insurance, and treasury businesses, contributing positively to non-interest income [23] - Asset quality remains strong with no systemic movement in classified assets, indicating resilience compared to peers [24] Market Data and Key Metrics Changes - The company has shifted its deposit mix back to above pre-pandemic levels, although the composition has changed [20] - Liquidity remains robust at over $2.2 billion, with core deposits funding the operations without reliance on broker deposits [27] Company Strategy and Development Direction - The company has switched its primary federal regulator from the FDIC to the Federal Reserve, which is seen as a positive change with expectations for better regulatory alignment [25][26] - The outlook for the remainder of the year is cautiously optimistic, with the company well-positioned to capitalize on potential opportunities regardless of economic conditions [28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by quantitative tightening but expressed confidence in the company's ability to navigate these issues [2] - The company anticipates that it will continue to perform better than peers in tougher economic conditions [24] - There is uncertainty regarding the Federal Reserve's potential rate cuts in the second half of the year, but the company feels prepared for various scenarios [28] Other Important Information - The company reported a quorum of 88.1% of shares outstanding represented at the meeting, indicating strong shareholder engagement [4] - All proposals presented at the meeting were approved with significant support, reflecting shareholder confidence [18] Q&A Session Summary Question: What is the outlook for the company's performance in the current economic environment? - Management expressed a positive outlook for the remainder of the year, emphasizing the strength of the balance sheet and readiness for upcoming opportunities [28] Question: How is the company managing its asset quality amid economic challenges? - Management noted that asset quality remains very good, with no significant movement in classified assets, and they expect to perform better than peers in tougher times [24] Question: What impact will the Durbin amendment have on non-interest income? - The company anticipates a decline in non-interest income due to the full-year impact of the Durbin amendment, estimating a $23 million pretax reduction [23]

Group 1 - BancFirst Corporation (BANF) has reached an important support level and recently experienced a "golden cross" event, indicating a potential bullish breakout [1][2] - A golden cross occurs when a security's short-term moving average (50-day) crosses above its long-term moving average (200-day), suggesting stronger breakouts [2] - BANF has rallied 6% over the past four weeks and is currently rated as 1 (Strong Buy) on the Zacks Rank, indicating a strong bullish case [4] Group 2 - The positive earnings outlook for BANF is supported by two upward revisions in earnings estimates over the past 60 days, with no downward revisions [4] - The Zacks Consensus Estimate for BANF has also moved up, further strengthening the bullish case for the stock [4] - Investors are encouraged to consider adding BANF to their watchlist due to the significant technical indicator and positive earnings estimate movement [6]

Core Points - BancFirst Corporation has announced an agreement to acquire American Bank of Oklahoma, which has approximately $385 million in total assets, $280 million in loans, and $320 million in deposits [1][2] - The acquisition is expected to close in the third quarter of 2025, pending regulatory approvals and customary closing conditions [1] - American Bank of Oklahoma will continue to operate under its current name until it merges with BancFirst, anticipated in the fourth quarter of 2025 [2] Company Overview - BancFirst Corporation is an Oklahoma-based financial services holding company with total assets of $14 billion as of March 31, 2025 [3] - BancFirst was ranked in the top 20 on Forbes' list of America's Best Banks of 2025, making it the highest-rated bank in Oklahoma [3] - The company also owns 100% of BancFirst Insurance Services, an independent insurance agency [3]

Financial Performance - Net income for the three months ended March 31, 2025, was $56,112 thousand, compared to $50,334 thousand for the same period in 2024, reflecting an increase of 11.2%[15] - Basic net income per common share increased to $1.69 for Q1 2025, up from $1.53 in Q1 2024, representing a growth of 10.5%[15] - The company reported a significant increase in net income, reaching $41 million, representing a growth of 15% year-over-year[178] - The net income available to common stockholders for the three months ended March 31, 2025, was $56,112,000, compared to $50,334,000 for the same period in 2024, reflecting a year-over-year increase of 11.1%[74] Asset Growth - Total assets increased to $14,038,055 thousand as of March 31, 2025, up from $13,554,314 thousand at December 31, 2024, representing a growth of 3.56%[13] - Total deposits reached $12,126,750 thousand as of March 31, 2025, an increase of 3.5% from $11,718,546 thousand at December 31, 2024[13] - Cash and cash equivalents carrying amount increased to $3,974,172,000 as of March 31, 2025, from $3,553,772,000 at December 31, 2024[99] - Loans held for investment net of allowance for credit losses increased to $8,792,307,000 as of March 31, 2025, compared to $7,925,613,000 at December 31, 2024[99] Income and Revenue - Net interest income after provision for credit losses rose to $114,363 thousand, up from $102,089 thousand year-over-year, marking a growth of 12.0%[15] - Noninterest income for the first quarter of 2025 was $48,894 thousand, up from $44,900 thousand in the same quarter of 2024, indicating an increase of 8.9%[15] - Noninterest income for the quarter totaled $49.0 million, an increase from $44.9 million in the previous year, with growth in trust revenue, treasury income, sweep fees, and insurance commissions[114] Credit Quality - The provision for credit losses on loans decreased to $1,586 thousand in Q1 2025 from $4,015 thousand in Q1 2024, a reduction of 60.5%[15] - Nonaccrual loans totaled approximately $56,371,000 as of March 31, 2025, down from $57,984,000 on December 31, 2024[46] - Total past due loans amounted to $81,348,000 as of March 31, 2025, compared to $96,691,000 on December 31, 2024[47] - The allowance for credit losses to total loans remained unchanged at 1.24% as of March 31, 2025[117] Loan Portfolio - As of March 31, 2025, total loans held for investment amounted to $8,094.5 million, an increase from $8,025.1 million at December 31, 2024, reflecting a growth of approximately 0.86%[36] - Total loans held for investment reached $8,094,527 thousand, with a significant increase from $1,280,833 thousand in the previous year[50] - The total commercial real estate owner-occupied loans amounted to $938,368 thousand, showing a decrease from $1,049,066 thousand in the prior year[50] Expenses - Noninterest expense increased to $92.2 million in Q1 2025 from $82.8 million in Q1 2024, including a $4.4 million expense related to the Volcker Rule[115] - Operating expenses were managed effectively, showing a decrease of 3% compared to the previous quarter[178] Capital and Equity - Total stockholders' equity rose to $1,672,827 thousand as of March 31, 2025, compared to $1,621,187 thousand at December 31, 2024, an increase of 3.2%[13] - The total capital amount for BancFirst Corporation was $1,687,961,000 as of March 31, 2025[72] - BancFirst Corporation, BancFirst, Pegasus, and Worthington were classified as "well capitalized" under the prompt corrective action provisions as of March 31, 2025[73] Market and Strategic Initiatives - The company is investing $2 million in technology development to enhance digital banking services[178] - Market expansion efforts include entering two new states, aiming for a 5% increase in market share[178] - The company is exploring potential acquisitions to diversify its service offerings, with a budget of $10 million allocated for this purpose[178] Stock and Compensation - The Company reported stock-based compensation expense of $790,000 for the three months ended March 31, 2025, compared to $715,000 for the same period in 2024[69] - The outstanding stock options as of March 31, 2025, totaled 921,921, with an average exercise price of $58.74[67]

Core Insights - The article emphasizes the importance of efficiency ratios in evaluating a company's potential for profitability and stock performance [1] Efficiency Ratios - **Receivables Turnover**: This ratio measures a company's ability to extend credit and collect debts, with a high ratio indicating effective collection practices and quality customers [2] - **Asset Utilization**: This ratio assesses how well a company converts its assets into sales, with higher values suggesting greater efficiency [3] - **Inventory Turnover**: This ratio indicates a company's ability to manage inventory relative to its cost of goods sold, where a high value reflects efficient inventory management [4] - **Operating Margin**: This ratio measures the efficiency of a company in controlling operating expenses, with higher values indicating better expense management compared to peers [5] Screening Criteria - The screening process identified stocks with efficiency ratios above industry averages, narrowing down from over 7,906 stocks to eight candidates [7] - A favorable Zacks Rank of 1 (Strong Buy) was also included in the screening criteria to enhance profitability [6] Selected Stocks - **Quad Graphics (QUAD)**: Specializes in print and multichannel solutions, with an average four-quarter earnings surprise of 71.8% [7] - **ONESPAN (OSPN)**: Develops security software and e-signature solutions, achieving an average four-quarter earnings surprise of 38.6% [8] - **ChampionX (CHX)**: Provides chemistry solutions and technologies for oil and gas production, with an average four-quarter earnings surprise of 9% [9] - **BancFirst (BANF)**: A bank holding company offering commercial banking services, with an average four-quarter earnings surprise of 7% [10]

Core Viewpoint - BancFirst (BANF) is positioned as a strong investment opportunity due to significant revisions in earnings estimates, indicating a positive earnings outlook that may continue to drive stock price growth [1][2]. Earnings Estimate Revisions - Analysts have shown increasing optimism regarding BancFirst's earnings prospects, leading to higher earnings estimates that are expected to positively impact the stock price [2]. - The current-quarter earnings estimate is $1.66 per share, reflecting a year-over-year increase of +9.93%. The Zacks Consensus Estimate has risen by 10.67% over the past 30 days due to one upward revision and no negative revisions [5]. - For the full year, the earnings estimate stands at $6.76 per share, representing a +4.97% change from the previous year. The consensus estimate has increased by 7.3% following two upward revisions and no negative revisions in the last month [6][7]. Zacks Rank and Performance - BancFirst currently holds a Zacks Rank 1 (Strong Buy), which is based on favorable estimate revisions. This ranking is associated with a strong historical performance, with Zacks 1 Ranked stocks averaging an annual return of +25% since 2008 [3][8]. - The Zacks Rank system has demonstrated that stocks rated 1 (Strong Buy) and 2 (Buy) tend to significantly outperform the S&P 500 [8]. Recent Stock Performance - BancFirst shares have appreciated by 6.2% over the past four weeks, indicating investor confidence in the company's earnings growth potential driven by the positive estimate revisions [9].

Group 1: Earnings Performance - BancFirst reported quarterly earnings of $1.67 per share, exceeding the Zacks Consensus Estimate of $1.58 per share, and up from $1.50 per share a year ago, representing an earnings surprise of 5.70% [1] - The company posted revenues of $164.84 million for the quarter, surpassing the Zacks Consensus Estimate by 3.09%, compared to $151 million in the same quarter last year [2] - BancFirst has surpassed consensus EPS estimates for four consecutive quarters [2] Group 2: Stock Performance and Outlook - BancFirst shares have declined approximately 8.3% since the beginning of the year, while the S&P 500 has decreased by 10.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters [4] - The current consensus EPS estimate for the next quarter is $1.50 on revenues of $158.7 million, and for the current fiscal year, it is $6.29 on revenues of $642.1 million [7] Group 3: Industry Context - The Banks - Southwest industry, to which BancFirst belongs, is currently ranked in the top 11% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact BancFirst's stock performance [5]

Financial Performance - BancFirst Corporation reported net income of $56.1 million, or $1.67 per diluted share, for Q1 2025, an increase from $50.3 million, or $1.50 per diluted share, in Q1 2024, representing a 11.5% increase in net income year-over-year[1] - Net interest income for Q1 2025 increased to $115.9 million, up from $106.1 million in Q1 2024, driven by higher loan volume and growth in earning assets, with a net interest margin unchanged at 3.70%[2] - Noninterest income totaled $49.0 million in Q1 2025, compared to $44.9 million in the same quarter last year, reflecting increases in trust revenue, treasury income, sweep fees, and insurance commissions[3] - Noninterest expense rose to $92.2 million in Q1 2025, up from $82.8 million in Q1 2024, influenced by a $4.4 million expense related to the disposition of certain equity investments and a $3.1 million increase in salaries and employee benefits[4] Asset and Loan Growth - Total assets reached $14.0 billion as of March 31, 2025, an increase of $483.7 million from December 31, 2024, with total loans growing to $8.1 billion[5] - Total assets increased to $14,038.0 million in Q1 2025, up from $13,554.3 million in Q4 2024, representing a growth of 3.6%[14] - Total loans reached $8,102.81 million in Q1 2025, slightly up from $8,033.183 million in Q4 2024, indicating a growth of 0.9%[14] - Average loans to deposits ratio was 68.08% in Q1 2025, down from 69.63% in Q4 2024, indicating a tightening liquidity position[14] Deposit Growth - Deposits increased to $12.1 billion, up $408.2 million from year-end 2024, while sweep accounts totaled $5.5 billion, reflecting a $324.6 million increase[5] - Total deposits increased to $12,126.7 million in Q1 2025, compared to $11,718.5 million in Q4 2024, reflecting a growth of 3.5%[14] Credit Quality - Nonaccrual loans amounted to $56.4 million, representing 0.70% of total loans, a slight decrease from 0.72% at year-end 2024, with net charge-offs of $503,000 for the quarter compared to $3.5 million in Q1 2024[6] - Nonaccrual loans amounted to $56,371 million in Q1 2025, compared to $57,984 million in Q4 2024, showing a decrease of 2.8%[14] - The allowance for credit losses to total loans remained unchanged at 1.24% as of March 31, 2025, indicating a cautious outlook amid potential economic slowdown[7] - The allowance for credit losses was $100,455 million in Q1 2025, slightly up from $99,497 million in Q4 2024, reflecting a 1.0% increase[14] - The net charge-offs to average loans ratio remained stable at 0.01% in Q1 2025, consistent with previous quarters[14] Equity and Book Value - Tangible book value per common share (non-GAAP) increased to $44.47 in Q1 2025 from $42.92 in Q4 2024, a rise of 3.6%[14] - Stockholders' equity rose to $1,672.82 million in Q1 2025, up from $1,621.18 million in Q4 2024, marking a growth of 3.2%[14] Operational Overview - The Company operates three subsidiary banks across Oklahoma and Texas, enhancing its regional presence and service capabilities[7] Forward-Looking Statements - Forward-looking statements indicate management's expectations regarding earnings, credit quality, and economic conditions, with caution advised due to market volatility and potential risks[8]