BFC Capital Trust II PFD TR 7.20%

What they do

BancFirst Corporation conducts most operations through its wholly-owned subsidiary BancFirst, an Oklahoma state-chartered bank with 109 locations across 62 Oklahoma communities, plus Pegasus Bank (Dallas) and Worthington Bank (Fort Worth/Arlington/Denton). It offers commercial, real estate, energy, agricultural, and consumer lending, along with depository, treasury, trust, insurance, and correspondent banking services. Lending and investing are funded almost entirely by core deposits, and processing and support functions are centralized for efficiency.

Revenue drivers

• Net interest income — Primary revenue source; $490.5 million in 2025, up from $446.9 million in 2024, driven by higher loan volume and growth in other earning assets.
• Noninterest income — Totaled $200.1 million in 2025, up from $184.6 million; includes trust revenue, treasury income, sweep fees, insurance commissions, and a $4.5 million gain on sale of Visa B-1 stock.
• Commercial lending — Focus on small to medium-sized businesses in light manufacturing, wholesale/retail trade, real estate development, services, agriculture, and energy; includes SBA guaranteed loans via BancFirst Commercial Capital.
• Consumer and residential lending — Provides auto loans, home equity loans, and other personal loans, plus residential mortgages primarily in non-metropolitan areas.

Recent performance

For Q2 2026 (quarter ended June 30, 2026), net income was $66.7 million, or $1.96 per diluted share, up from $62.3 million ($1.85) in Q2 2025. Net interest income rose to $133.5 million from $121.3 million, with net interest margin expanding to 3.84% from 3.75%. Total assets reached $15.1 billion, loans totaled $8.7 billion, and deposits were $12.8 billion. Nonaccrual loans rose to 0.94% of total loans (from 0.72% at year-end 2025), and the allowance for credit losses stood at 1.25% of loans. Net charge-offs were $2.4 million for the quarter, down from $4.7 million a year earlier.

Strategy

BancFirst's strategy is to provide a full range of commercial banking services to retail customers and small to medium-sized businesses in Oklahoma's non-metropolitan trade centers and metropolitan statistical areas. The company maintains a strong community orientation through local consulting boards and centralized processing to achieve operational efficiencies. It has grown through acquisitions of over 40 banks, branch purchases, insurance agencies, and de-novo branches. Recent expansion includes the announced acquisition of SpiritBank, adding Tulsa MSA communities of Bristow and Sapulpa, with a planned Q4 close and conversion pending regulatory approval.

Risks

• Fiscal and monetary policy — Federal Reserve policies on interest rates, reserve requirements, and open market operations directly affect loan and deposit pricing and availability.
• Energy sector exposure — Changes in oil and gas commodity prices could impact the related loan portfolio and the regional Oklahoma economy.
• Deposit mix shift — A continued shift from noninterest-bearing to interest-bearing deposits could compress net interest margin.
• Credit quality deterioration — Higher nonaccrual loans (0.94% of total loans at Q2 2026, up from 0.72% at year-end 2025) and potential commercial office property weakness could lead to increased provisions and charge-offs.

Outlook

Management described Q2 2026 as a record quarter, with an expanding margin and earning asset growth, and expressed guarded economic outlook despite low charge-offs. The company expects to close the SpiritBank acquisition in Q4 2026, pending regulatory approval. Forward-looking statements caution that actual results may differ materially due to economic conditions, interest rates, regulatory changes, and other risks.