Core Viewpoint - BancFirst (BANF) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks rating system is based solely on a company's changing earnings picture, tracking the Zacks Consensus Estimate for EPS from sell-side analysts [2]. - The recent upgrade reflects an increase in earnings estimates, with BancFirst expected to earn $6.52 per share for the fiscal year ending December 2025, showing a year-over-year change of 1.2% [9]. - Over the past three months, the Zacks Consensus Estimate for BancFirst has increased by 6.5%, indicating a positive trend in earnings revisions [9]. Impact on Stock Prices - Changes in earnings estimates are strongly correlated with near-term stock price movements, making the Zacks rating system valuable for investors [5][7]. - The upgrade to Zacks Rank 1 positions BancFirst in the top 5% of Zacks-covered stocks, suggesting potential for higher stock prices in the near term [11]. Historical Performance of Zacks Ratings - The Zacks Rank stock-rating system has a strong track record, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [8].

Company Overview - BancFirst Corporation operates 104 banking locations in Oklahoma and has a market share of deposits of 6.84% as of June 30, 2024[27]. - The company employs 2,135 full-time equivalent employees as of December 31, 2024, focusing on training and development to enhance employee skills[21]. - BancFirst's primary lending activities include commercial loans to small to medium-sized businesses, with a focus on light manufacturing, retail trade, and agriculture[15]. - The company has expanded through acquisitions and currently operates through its wholly-owned subsidiaries, Pegasus Bank and Worthington Bank, in Texas[10]. - BancFirst's strategy emphasizes community banking, allowing local branches to respond quickly to customer needs while maintaining centralized support functions[13]. - The company offers a wide range of financial services, including commercial, real estate, and consumer lending, as well as trust and insurance services[14]. Financial Performance - The Company's net income for 2024 was $216.4 million, or $6.44 per diluted share, compared to $212.5 million, or $6.34 per diluted share for 2023[198]. - Net interest income increased to $446.9 million in 2024, up from $424.5 million in 2023, driven by higher interest rates and loan volume, although the net interest margin decreased to 3.73% from 3.79%[199]. - The provision for credit losses rose to $9.0 million in 2024 from $7.5 million in 2023, primarily due to loan growth[200]. - Noninterest income totaled $184.6 million in 2024, a slight decrease from $185.4 million in 2023, mainly due to a $10.8 million reduction in interchange fees[201]. - Noninterest expense increased to $347.2 million in 2024 from $332.5 million in 2023, largely due to higher salaries and employee benefits[202]. - Total assets at year-end 2024 were $13.6 billion, an increase of $1.2 billion from December 31, 2023, with loans growing by $373.0 million to $8.0 billion[203]. - The Company's total stockholders' equity increased by $187.3 million to $1.6 billion at year-end 2024[203]. Regulatory Environment - The company is subject to comprehensive regulation by the Federal Reserve Board and other regulatory authorities, impacting its growth and earnings performance[32]. - The company must maintain "well capitalized" and "well managed" status to retain its financial holding company status[39]. - A depository institution subsidiary is considered "well capitalized" if it meets specific capital requirements, including a total risk-based capital ratio of 10.0% or greater[58]. - The Basel III Capital Rules require a minimum Common Equity Tier 1 (CET1) capital ratio of 4.5% and a capital conservation buffer of 2.5%[54]. - The company is subject to limitations on dividends if it does not meet capital requirements, as paying dividends that deplete capital is considered unsafe[44]. - The Federal Reserve Board requires bank holding companies to act as a source of strength for their subsidiary banks, which may include committing resources to support them[48]. - The company must comply with capital adequacy standards established by the Federal Reserve Board and the FDIC, based on the Basel III Capital Rules[50]. - If a depository institution is deemed "undercapitalized," it must submit a capital restoration plan, which requires the parent holding company to guarantee compliance[59]. - The company is restricted from making capital distributions if it would result in the depository institution being "undercapitalized"[60]. - The Federal Reserve Board has the authority to impose limitations on a financial holding company's activities if it fails to meet capital and management requirements[40]. Risk Factors - The company faces risks from interest rate fluctuations, which could compress net interest margins if rates decline[115]. - A significant portion of the loan portfolio is exposed to credit risk, with potential adverse effects if borrower defaults exceed the allowance for credit losses[121]. - The company operates exclusively within the State of Oklahoma, making it sensitive to local economic conditions, which could impact loan demand and profitability[123]. - Increased competition for deposits has been noted, with a shift from non-interest-bearing to interest-bearing deposits potentially reducing net interest margins[127]. - Liquidity risk is a significant concern for the company, as it relies heavily on external funding sources, and unexpected declines in dividends from subsidiaries could adversely affect liquidity[138]. - The company may need to raise additional capital in the future, which could be affected by market conditions and financial performance[161]. Cybersecurity and Operational Risks - The company has implemented multiple layers of cybersecurity controls to protect sensitive data and ensure business continuity in the event of a cyber-attack[76]. - Cybersecurity threats pose a significant risk, as breaches could disrupt operations and result in unauthorized access to sensitive information, potentially harming the company's reputation[149]. - The Company has established comprehensive incident response and recovery plans for cybersecurity incidents, which are regularly tested[175]. - The company relies on external vendors for essential products and services, which poses operational and informational security risks[157]. - The effectiveness of internal controls is crucial for reliable financial reporting; any material weaknesses could harm the Company's business and investor confidence[159]. Shareholder and Stock Information - The company’s directors and executive officers owned 32% of the outstanding common stock as of January 31, 2025, giving them significant influence over shareholder decisions[152]. - The trading volume of the company's common stock is lower than that of larger financial services companies, which could lead to increased stock price volatility[150]. - The Company has a Stock Repurchase Program in place, with up to 479,784 shares available for repurchase as of December 31, 2024[187]. - Future dividend payments will depend on the Company's earnings, financial condition, and capital needs, as determined by the Board of Directors[185]. - The company may face challenges in maintaining its dividend payments due to federal regulatory considerations, which could impact stock price and investor confidence[151]. Community and CRA Ratings - BancFirst received a "satisfactory" rating in its most recent CRA examination in 2024[89]. - Pegasus also received a "satisfactory" rating in its last examination in 2020[89]. - Worthington achieved an "outstanding" rating in its last examination in 2018[89]. - The final rule from the OCC, Federal Reserve Board, and FDIC to modernize the CRA framework will become effective on January 1, 2026, with data reporting requirements starting on January 1, 2027[90][92].

Core Viewpoint - Companies with favorable efficiency levels are more likely to attract investors due to their expected impressive returns, which are believed to be positively correlated with price performance [1] Efficiency Ratios - The efficiency ratio is a key indicator of a company's financial health, analyzing how effectively a company utilizes its assets and liabilities [1] - Popular efficiency ratios to consider when selecting stocks include Receivables Turnover, Asset Utilization, Inventory Turnover, and Operating Margin [2][3][4][5] Receivables Turnover - This ratio measures a company's ability to extend credit and collect debts, with a high ratio indicating effective collection of accounts receivable [2] Asset Utilization - This ratio indicates a company's capability to convert assets into output, with a higher ratio suggesting greater efficiency [3] Inventory Turnover - This ratio assesses a company's ability to maintain an appropriate inventory level, with a high value indicating low inventory relative to cost of goods sold (COGS) [4] Operating Margin - This measure reflects a company's ability to control operating expenses, with a higher ratio indicating more efficient management compared to peers [5] Screening Criteria - A favorable Zacks Rank (1 Strong Buy) is added to the screening process to enhance profitability [6] - The screening criteria narrowed down over 7,906 stocks to 10, focusing on those with efficiency ratios above industry averages [7] Selected Companies - **Deckers Outdoor (DECK)**: A leading designer and producer of niche footwear with a four-quarter average positive earnings surprise of 36.8% [7] - **Flexsteel Industries (FLXS)**: Engaged in the design and manufacture of upholstered furniture, with a four-quarter average positive earnings surprise of 19.8% [9] - **Commerce Bancshares (CBSH)**: A bank holding company providing a range of banking services, with a four-quarter average positive earnings surprise of 10.2% [10] - **BancFirst (BANF)**: Focuses on commercial banking services for retail customers and small to medium-sized businesses, with a four-quarter average positive earnings surprise of 7.9% [11]

Group 1 - BancFirst reported quarterly earnings of $1.68 per share, exceeding the Zacks Consensus Estimate of $1.61 per share, and up from $1.46 per share a year ago, representing an earnings surprise of 4.35% [1] - The company posted revenues of $162.94 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.64%, and an increase from $150.22 million year-over-year [2] - BancFirst has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] Group 2 - The stock has gained about 3% since the beginning of the year, compared to the S&P 500's gain of 3.5%, suggesting a slight underperformance relative to the market [3] - The current consensus EPS estimate for the upcoming quarter is $1.52 on revenues of $159.5 million, and for the current fiscal year, it is $6.15 on revenues of $644.5 million [7] - The Zacks Industry Rank for Banks - Southwest is in the top 6% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] Group 3 - The estimate revisions trend for BancFirst is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, suggesting it is expected to outperform the market in the near future [6] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - Another company in the same industry, Cullen/Frost Bankers, is expected to report quarterly earnings of $2.17 per share, reflecting a year-over-year change of -0.5% [9]

Financial Performance - BancFirst Corporation reported a net income of $56.5 million, or $1.68 diluted earnings per share, for Q4 2024, up from $48.9 million, or $1.46 per share, in Q4 2023, marking a 15.5% increase in net income year-over-year[1]. - Noninterest income for Q4 2024 totaled $47.0 million, an increase from $45.2 million in the same period last year, with notable contributions from trust revenue and a $355,000 gain on equity securities[3]. - Noninterest expense rose to $92.3 million in Q4 2024, up from $89.8 million in Q4 2023, primarily due to a $3.6 million increase in salaries and employee benefits[4]. - The company anticipates a positive outlook for 2025, supported by strong regional economic performance and encouraging deposit growth[7]. Asset and Loan Growth - Total assets reached $13.6 billion as of December 31, 2024, an increase of $1.2 billion from the previous year, with total loans growing by $373.0 million to $8.0 billion[5]. - Total assets increased to $14.82 billion in Q4 2024, up from $13.31 billion in Q3 2024, representing a growth of 11.3%[16]. - Total loans reached $8.03 billion in Q4 2024, a slight decrease of 1.9% from $8.19 billion in Q3 2024[16]. - Average loans to deposits ratio was 69.63% in Q4 2024, down from 72.27% in Q3 2024[16]. Deposit Growth - Deposits increased to $11.7 billion, up $1.0 billion from year-end 2023, while sweep accounts rose to $5.2 billion, an increase of $871.6 million[5]. - Total deposits grew to $11.72 billion in Q4 2024, an increase of 2.1% from $11.47 billion in Q3 2024[16]. Credit Quality - Nonaccrual loans totaled $58.0 million, representing 0.72% of total loans at year-end 2024, compared to 0.32% at the end of 2023[6]. - Nonaccrual loans increased to $57.98 million in Q4 2024, up from $45.48 million in Q3 2024, indicating a rise of 27.5%[16]. - The allowance for credit losses to total loans was 1.24% at the end of 2024, slightly down from 1.26% at the end of 2023[6]. - The allowance for credit losses was $99.50 million in Q4 2024, compared to $101.88 million in Q3 2024, reflecting a decrease of 2.3%[16]. Equity and Valuation - BancFirst Corporation's total stockholders' equity increased to $1.6 billion, up $187.3 million from the end of 2023[5]. - Stockholders' equity increased to $1.62 billion in Q4 2024, up from $1.58 billion in Q3 2024, a growth of 2.1%[16]. - Tangible book value per common share increased to $42.92 in Q4 2024, up from $41.91 in Q3 2024, a rise of 2.4%[16]. Interest Income and Margin - Net interest income for Q4 2024 increased to $115.9 million, compared to $105.1 million in Q4 2023, driven primarily by increased loan volume, with a net interest margin of 3.68% in 2024 versus 3.67% in 2023[2]. - The net interest margin for Q4 2024 was 3.68%, slightly down from 3.73% in Q3 2024[20]. - The net interest income for Q4 2024 was $116.11 million, compared to $447.49 million for the full year[20].

Group 1: Company Performance - BancFirst (BANF) has gained approximately 24.5% year-to-date, outperforming the average gain of 21.8% in the Finance group [9] - The Zacks Consensus Estimate for BancFirst's full-year earnings has increased by 4.9% over the past three months, indicating a positive earnings outlook [5] - BancFirst holds a Zacks Rank of 2 (Buy), suggesting strong potential for future performance [3][7] Group 2: Industry Comparison - BancFirst is part of the Banks - Southwest industry, which has seen an average gain of about 22.3% this year, indicating that BancFirst is performing better than its peers in this specific industry [4] - The Finance sector, which includes 871 companies, ranks 3 in the Zacks Sector Rank, reflecting overall strength within the sector [7] - In contrast, Brookfield Corp. (BN), which belongs to the Real Estate - Operations industry, has returned 44.2% year-to-date, while its industry has gained 18.5% [2][6]

Group 1: TPG RE Finance Trust (TRTX) - TPG RE Finance Trust is a commercial real estate finance company focusing on originating, acquiring, and managing commercial mortgage loans and related debt instruments, with a Zacks Consensus Estimate for current year earnings increasing by 1.8% over the last 60 days [1] Group 2: BancFirst (BANF) - BancFirst is a bank holding company providing a full range of commercial banking services to retail customers and small to medium-sized businesses, with a Zacks Consensus Estimate for current year earnings increasing nearly 2.1% over the last 60 days [5] Group 3: LATAM Airlines Group (LTM) - LATAM Airlines Group operates domestic and international passenger and cargo air services primarily in Chile, the United States, South Pacific, Europe, and Latin America, with a Zacks Consensus Estimate for current year earnings increasing nearly 26.4% over the last 60 days [7] Group 4: Dividend Yields - TPG RE Finance Trust has a dividend yield of 1.7%, compared to the industry average of 0.0% [2] - Another Zacks Rank 1 company has a dividend yield of 11.3%, compared to the industry average of 0.0% [4] - A different Zacks Rank 1 company has a dividend yield of 1.6%, compared to the industry average of 0.6% [3]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: BancFirst (BANF) - BancFirst currently holds a Momentum Style Score of B, indicating a favorable momentum characteristic [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting strong potential for outperformance in the market [3] Performance Metrics - Over the past week, BANF shares increased by 13.19%, outperforming the Zacks Banks - Southwest industry, which rose by 6.6% [5] - In a longer timeframe, BANF shares have gained 20.11% over the past quarter and 39.87% over the last year, while the S&P 500 increased by 10.53% and 37.42%, respectively [6] Trading Volume - The average 20-day trading volume for BANF is 107,274 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, two earnings estimates for BANF have been revised upwards, raising the consensus estimate from $6.07 to $6.37 [9] - For the next fiscal year, two estimates have also moved higher, with no downward revisions noted [9]

Group 1: Company Overview - BancFirst (BANF) is a stock that has shown strong performance compared to its peers in the Finance sector, gaining about 24% year-to-date [4] - The Zacks Rank for BancFirst is currently 1 (Strong Buy), indicating a favorable outlook based on earnings estimate revisions [3] Group 2: Sector and Industry Performance - The Finance sector, which includes 872 individual stocks, has an average year-to-date gain of approximately 23.3%, with BancFirst outperforming this average [4] - BancFirst is part of the Banks - Southwest industry, which has gained about 26.8% year-to-date, indicating that while BancFirst is performing well, it is slightly underperforming its specific industry [6] Group 3: Analyst Sentiment - The Zacks Consensus Estimate for BancFirst's full-year earnings has increased by 4.9% over the past quarter, reflecting improved analyst sentiment and a stronger earnings outlook [4]

Financial Performance - BancFirst Corporation reported total interest income of $187.65 million for the three months ended September 30, 2024, an increase of 17.2% compared to $160.23 million for the same period in 2023[6]. - Net interest income after provision for credit losses was $111.93 million for the three months ended September 30, 2024, up from $102.00 million in the same period last year, reflecting a growth of 9.5%[6]. - Noninterest income totaled $48.71 million for the three months ended September 30, 2024, compared to $44.45 million for the same period in 2023, marking an increase of 9.1%[6]. - Net income for the three months ended September 30, 2024, was $58.90 million, compared to $50.99 million for the same period in 2023, indicating a year-over-year increase of 15.4%[6]. - Basic earnings per share for the three months ended September 30, 2024, was $1.78, up from $1.55 in the same period last year, reflecting a growth of 14.8%[6]. - Total noninterest expense increased to $86.73 million for the three months ended September 30, 2024, from $81.22 million in the same period last year, representing a rise of 6.2%[6]. Equity and Dividends - Total stockholders' equity increased to $1.58 billion as of September 30, 2024, compared to $1.37 billion at the end of September 2023, showing a growth of 15.2%[7]. - The company declared dividends on common stock of $0.46 per share for the three months ended September 30, 2024, compared to $0.43 per share in the same period last year[7]. Interest and Expenses - BancFirst Corporation's total interest expense for the three months ended September 30, 2024, was $72.69 million, an increase from $55.92 million in the same period of 2023, reflecting a rise of 30.0%[6]. - The provision for credit losses increased to $10,404 from $7,458, indicating a rise of approximately 39.1% year-over-year[4]. Cash Flow and Investments - Cash provided by operating activities increased to $244,068, compared to $190,281 in the same period last year, marking an increase of about 28.3%[4]. - Cash receipts from the sale of loans originated for sale rose to $152,279, up from $118,786, reflecting a growth of approximately 28.2%[4]. - Net cash used in investing activities was $(388,422), an improvement from $(535,996) in the prior year, indicating a reduction of about 27.5%[4]. - The estimated fair value of total debt securities available for sale as of September 30, 2024, was $1,376,075, down from $1,553,905 at the end of 2023[18]. Loans and Credit Quality - Loans held for investment totaled $8,180,361 thousand as of September 30, 2024, representing an increase from $7,656,645 thousand as of December 31, 2023, indicating a growth of approximately 6.8%[24]. - Nonaccrual loans totaled $45,481 thousand as of September 30, 2024, a significant increase from $24,573 thousand as of December 31, 2023[31]. - The company monitors credit quality indicators including loan delinquencies and nonaccrual loans, which are reviewed regularly[34]. - The total past due loans as of September 30, 2024, amounted to $74,633 thousand, with $17,754 thousand past due for 30-59 days and $17,001 thousand for 60-89 days[32]. Charge-offs and Allowance for Credit Losses - Total current-period gross charge-offs reached $1,730 million, a significant increase compared to previous periods[39]. - The allowance for credit losses at the end of the period was $101,882 million, reflecting a provision for losses of $3,031 million during the current period[46]. - The provision for credit losses methodology follows the current expected credit loss (CECL) model, which is detailed in the company's Annual Report[44]. Capital Ratios - BancFirst Corporation's total capital to risk-weighted assets ratio was 17.53% as of September 30, 2024, significantly above the required 8.00%[73]. - The Common Equity Tier 1 Capital ratio for BancFirst Corporation was 15.48%, exceeding the required 4.50%[73]. Stock and Compensation - The Company issued $60 million in subordinated notes with a fixed interest rate of 3.50% per annum, maturing on June 30, 2036[58]. - The stock-based compensation expense for the nine months ended September 30, 2024, was $2,580, up from $2,077 in the same period of 2023[68]. - The total intrinsic value of options exercised in the nine months ended September 30, 2024, was $11,931, compared to $2,507 in the same period of 2023[66]. Market and Fair Value - The fair value of U.S. Treasury securities was $1,331,323,000, down from $1,498,045,000 as of December 31, 2023[82]. - The fair value of derivative assets as of September 30, 2024, was $26,376,000, while derivative liabilities were $24,717,000[82]. - The company’s policy is to recognize transfers in and out of Levels 1, 2, and 3 as of the end of the reporting period[84].