BancFirst Margin Widens to 3.84% as Loans Accelerate

The Tip Desk · July 24, 2026 · 3 min read

Net interest income reached $133.5 million in the three months ended June 30, 2026, as the net interest margin expanded to 3.84% and loans rose $110.6 million from year-end.

BancFirst Corporation (BANF), an Oklahoma-based financial services holding company, reported net income of $66.7 million, or $1.96 a share, for the second quarter of 2026, compared with $62.3 million, or $1.85 a share, a year earlier.

The quarter’s operating turn was in the interest-earning engine. Net interest income rose to $133.5 million in the three months ended June 30, 2026, from $127.6 million in the first quarter, after $127.7 million in the fourth quarter of 2025. Higher loan volume and general growth in earning assets were the primary drivers.

The net interest margin widened to 3.84% from 3.74% in the first quarter, after a 3.71% print in the fourth quarter of 2025. Average loans were $8.61 billion in the three months ended June 30, 2026, earning a 6.89% yield. Average noninterest-bearing deposits were $4.12 billion, and the effect of interest-free funds on the margin was 1.03%.

Loan growth accelerated from the first quarter. Loans increased $110.6 million from December 31, 2025, to $8.7 billion at June 30, 2026, after a $51.4 million increase to $8.6 billion at March 31. Deposits totaled $12.8 billion at June 30, down from $12.9 billion at March 31. Sweep accounts were $5.0 billion. Stockholders’ equity stood at $2.0 billion.

Noninterest income was $53.9 million. Trust revenue, service charges on deposits, securities transactions, and treasury income each increased versus the year-ago quarter. BancFirst recorded $2.9 million of gains on bank-owned life insurance claims. Insurance commissions declined.

Noninterest expense was $97.5 million, up from $96.8 million in the first quarter. The increase was primarily attributable to a $5.2 million rise in salaries and employee benefits, which totaled $60.3 million after an $800,000 favorable adjustment to the funded employee benefit trust, and a $1.6 million increase in net expense from other real estate owned. The efficiency ratio improved to 52.02% from 54.07% in the first quarter. Return on average equity was 13.84%, and return on average assets was 1.77%.

Credit costs moved the other way. The provision for credit losses on loans increased to $4.8 million from $2.6 million in the first quarter, after a $2.0 million reversal in the fourth quarter of 2025. Nonaccrual loans rose to $81.4 million, or 0.94% of total loans, from $62.2 million, or 0.72%, at March 31, after $61.1 million, or 0.72%, at year-end 2025. Government agencies guaranteed about $7.9 million of nonaccrual loans at June 30. Net charge-offs were $2.4 million, or 0.03% of average loans, compared with $1.5 million, or 0.02%, in the first quarter. The allowance for credit losses was 1.25% of total loans at June 30.

Chief Executive David Harlow said the company enjoyed a record quarter fueled by an expanding margin and earning-asset growth, that noninterest income growth was solid across most major categories, and that expenses were managed in line with plan. He said the company’s economic outlook continues to be guarded, although charge-offs remain at historically low levels, and that with a $4.9 million provision, the allowance remains at a healthy level.

During the quarter, BancFirst announced the acquisition of SpiritBank, adding Tulsa MSA communities of Bristow and Sapulpa and expanding its Tulsa presence. Pending regulatory approval, a fourth-quarter close and conversion is anticipated.

The company operates three subsidiary banks: BancFirst, an Oklahoma state-chartered bank with 109 locations serving 62 communities across Oklahoma; Pegasus Bank, a Texas state-chartered bank with three locations in the Dallas Metroplex; and Worthington Bank, a Texas state-chartered bank with locations in the Fort Worth Metroplex, Arlington, and Denton. Cash dividends declared were $0.49 a share.