BANF

BancFirst is a textbook compounder hiding in plain sight. FY2025 net income of $241M (+11.2% YoY) and diluted EPS of $7.11 (+10.4%) extend a remarkably consistent earnings trajectory ($168M → $193M → $212M → $216M → $241M over five years), with stockholders' equity growing even faster at +14.4% to $1.85B and retained earnings up 12.4% to $1.61B. The MD&A confirms the engine: net interest income expanded to $490.5M from $446.9M, net interest margin actually ticked up to 3.74% (a notable feat in this rate environment, and unlike most regional peers suffering NIM compression), and the provision for credit losses fell to $5.7M from $9.0M on better vintage loss experience — a sign of clean credit, not reserve releases masking weakness. Noninterest income of $200.1M (+8%) is diversified across trust, treasury, sweep fees and insurance, reducing reliance on spread income.

Read the full thesis with Pro →