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.

Valuation is undemanding for this quality. At $114.24, the stock trades at 16.1x FY2025 EPS — roughly a market multiple for a bank growing earnings at low-double-digits with 13.0% ROE, a 7.0x liabilities/equity ratio (conservative for a bank), and minimal long-term debt. Operating cash flow of $285M comfortably funds both the $62.2M dividend (covered ~4.6x) and $48.3M in capex, leaving ample retained capital to compound book value. Share count grew only 1.0%, so per-share economics are not being diluted.