BancFirst stock price target lowered to $120 by KBW on NIM expansion

Published 20/10/2025, 11:38
BancFirst stock price target lowered to $120 by KBW on NIM expansion

Investing.com - Keefe, Bruyette & Woods (KBW) has lowered its price target on BancFirst (NASDAQ:BANF) to $120.00 from $132.00 while maintaining a Market Perform rating.

The price target reduction comes after BancFirst reported in-line earnings per share, but slightly missed on pre-provision net revenue as net interest margin expansion was offset by weaker fees and expenses.

BancFirst’s net interest margin increased by 4 basis points quarter-over-quarter, supported by better-than-expected loan growth at 8% last quarter annualized. Credit trends remained broadly clean, according to KBW.

The bank has received regulatory approval for its recent ABOK acquisition deal. KBW noted that BancFirst could potentially leverage its excess capital with additional mergers and acquisitions or deploy cash into the bond book to supplement earnings per share.

BancFirst shares are currently trading at 16.2 times KBW’s 2026 earnings estimate and 2.38 times tangible book value, according to the research firm’s analysis. The bank has maintained dividend payments for 33 consecutive years, with a current dividend yield of 1.74%. InvestingPro subscribers can access 8 additional key insights about BancFirst’s valuation and growth prospects.

In other recent news, BancFirst Corporation has received Federal Reserve approval to acquire AmeriBank Holding Company and its subsidiary, American Bank of Oklahoma. This acquisition will enhance BancFirst’s standing as the third-largest depository institution in Oklahoma. Initially, BancFirst plans to operate American Bank of Oklahoma as a separate entity before merging it with its subsidiary state member bank. Additionally, BancFirst announced a quarterly cash dividend of $0.49 per share on its common stock, payable on October 15, 2025, to shareholders of record as of September 30, 2025. The company will also pay quarterly interest on its Junior Subordinated Debentures, amounting to a dividend of $0.45 per share on trust preferred securities. In another development, DA Davidson has increased BancFirst’s stock price target to $136 from $120, maintaining a Neutral rating. The firm noted BancFirst’s strong quarter, highlighting better-than-expected spread income due to net interest margin expansion and earning asset growth. These recent developments provide a comprehensive view of BancFirst’s strategic moves and financial performance.

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