#United States #Oklahoma City #Financial Services #earnings report #BancFirst

BancFirst Corporation's Q2 Earnings Overview

BancFirst Corporation (NASDAQ GS:BANF) recently reported its financial results for the second quarter of 2025, announcing a net income of $62.3 million, which translates to earnings of $1.85 per diluted share. This marks a significant increase compared to the net income of $50.6 million, or $1.51 per diluted share, from Q2 of 2024, showcasing the company's robust performance as they continue to navigate the financial landscape.

Financial Highlights

For the quarter ended June 30, 2025, BancFirst's net interest income rose to $121.3 million, up from $109.9 million during the same period last year. This increase is primarily attributed to a higher volume of loans and overall growth in earning assets. Despite the positive uptick in interest income, the net interest margin remained relatively stable, reported at 3.75% for Q2 2025, slightly down from 3.76% in Q2 2024.

The company recorded a provision for credit losses on loans amounting to $1.2 million, which reflects a notable decline from the $3.4 million provision made in Q2 2024. This decrease indicates improved credit quality and effective risk management within their loan portfolio.

Noninterest income also saw an increase, totaling $48.0 million for the quarter, compared to $43.9 million in the previous year. The rise can be attributed to higher revenues from trust operations, treasury income, and service fees, alongside improvements in other noninterest income sources. However, it is essential to note that the overall growth was slightly tempered by losses from equity securities in Q2 2025.

Expense Management

BancFirst's noninterest expense for the second quarter reached $88.2 million, showing an increase from $85.3 million over the same period last year. The growth in expenses was driven primarily by a $3.2 million rise in salaries and employee benefits, an increase of $804,000 in occupancy expenses, and a $1.3 million rise in costs associated with other real estate owned. This overall increase was partially offset by a decrease in other noninterest expenses.

Asset and Loan Growth

As of June 30, 2025, BancFirst reported total assets of $14.0 billion, marking an increase of $491.5 million since the end of 2024. Loans also showed positive growth, increasing by $91.3 million from December 31, 2024, reaching a total of $8.1 billion by the end of Q2 2025. Deposits similarly rose to $12.1 billion, up by $337.6 million from year-end 2024.

Total stockholders' equity reached $1.7 billion, up by $106.9 million from the conclusion of 2024, indicating healthy capital growth and stability in the company’s financial foundation.

Commentary from Leadership

David Harlow, CEO of BancFirst, expressed optimism regarding the company’s performance, noting that the current quarter was significantly strong despite being impacted by one-time events that had around a $0.05 impact per diluted share. Furthermore, he revealed that they are looking forward to the anticipated acquisition of American Bank of Oklahoma, expected to close in the third quarter, which will extend their reach into the Collinsville and Skiatook communities, complementing their existing footprint of 59 communities across Oklahoma.

Harlow concluded by mentioning that while the Federal Reserve is maintaining a cautious stance on short-term rates, BancFirst is well-positioned to respond effectively should there be any adjustments in monetary policy in the latter half of the year. Nonetheless, the long-term outlook remains uncertain, influenced mainly by ongoing changes in global trade policy and geopolitical risks, reinforcing the company’s commitment to maintaining a robust loan loss reserve ratio.

Company Profile

BancFirst Corporation is a financial services holding entity based in Oklahoma. The corporation manages three subsidiary banks, including BancFirst, with a vast network of 104 banking locations throughout Oklahoma, as well as Pegasus Bank and Worthington Bank located in Texas. Their emphasis lies in delivering exceptional banking services and building strong relationships across the communities they serve.

For further information, visit BancFirst's website.