Oil prices rise on talk of Russia sanctions; bouncing off recent lows
On Thursday, Keefe, Bruyette & Woods maintained a Market Perform rating on BancFirst (NASDAQ:BANF) with a steady price target of $123.00. The move came after BancFirst announced the acquisition of American Bank of Oklahoma (ABOK), a $385 million asset privately held bank based in Collinsville, Oklahoma. The acquisition is seen as a strategic step, adding density to BancFirst’s growing metro-Tulsa presence and aligning with its historical approach of acquiring smaller, community-focused Oklahoma franchises.
The details of the deal’s financial metrics were not disclosed, but expectations are set for a manageable tangible book value (TBV) dilution and a modest increase in earnings per share (EPS), which is consistent with BancFirst’s previous acquisitions. According to InvestingPro data, BancFirst has demonstrated strong financial performance with a 43.5% total return over the past year and has maintained dividend payments for 33 consecutive years. This latest move is a continuation of BancFirst’s successful merger and acquisition (M&A) strategy, characterized by in-market, tuck-in style transactions.
American Bank of Oklahoma is considered a natural extension of BancFirst’s previous acquisition in Vinita, Oklahoma, in 2021. The addition of American is anticipated to supplement BancFirst’s EPS growth, particularly if there are cuts later in the year. Analysts expect BancFirst to remain active in M&A activities throughout the current financial cycle.
BancFirst shares are currently trading at 19.3 times projected 2026 earnings and 2.9 times TBV. The acquisition is seen as a move that reinforces BancFirst’s commitment to expanding its footprint in northeast Oklahoma and solidifying its market position through strategic M&A initiatives.
In other recent news, BancFirst Corporation reported first-quarter 2025 earnings that surpassed analyst expectations, with revenue also exceeding estimates. The company posted earnings per share of $1.67, beating the consensus of $1.58, and revenue reached $164.84 million, surpassing the projected $161.71 million. Net income increased to $56.1 million, up from $50.3 million in the same quarter the previous year. Additionally, BancFirst announced its plans to acquire American Bank of Oklahoma, aiming to expand its presence in the region. The acquisition includes approximately $385 million in total assets, $280 million in loans, and $320 million in deposits, and is expected to finalize in the third quarter of 2025. DA Davidson maintained its Neutral rating for BancFirst, with a price target of $120, following the company’s solid quarterly performance and effective cost control. The firm noted BancFirst’s stable net interest margin and growth in earning assets as positive indicators. Furthermore, the bank demonstrated stability in asset quality, with low net charge-offs and unchanged nonperforming asset levels.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.