BancFirst Raises Quarterly Dividend 6.1% to $0.52

BancFirst Corporation raised its quarterly dividend 6.1% to $0.52 per share from $0.49. The shares went ex-dividend on September 30, 2026, and the new rate lifts the annual dividend to $2.08 per share.

Why the dividend changed

BancFirst’s board did not give a specific reason for the increase. Its dividend declaration stated the new distribution and record terms without linking the decision to earnings, capital levels or a strategic transaction. The operating backdrop nevertheless shows why the board had room to continue the company’s pattern of annual increases.

BancFirst reported record second-quarter earnings, supported by an expanding net interest margin and growth in earning assets. Net income increased to $66.7 million from $62.3 million a year earlier, while net interest income rose to $133.5 million from $121.3 million. The company attributed the improvement in net interest income primarily to higher loan volume and general growth in earning assets. Noninterest income also increased, although higher salaries and employee benefits contributed to expense growth, according to the second-quarter earnings release.

Chief Executive David Harlow described the economic outlook as guarded, even as charge-offs remained at historically low levels. BancFirst also increased its provision for credit losses during the quarter as nonaccrual loans rose. That combination points to a measured dividend decision: the increase continued the established growth pattern without materially changing the proportion of earnings distributed.

The bank’s capital position provided additional context. BancFirst Corporation and its banking subsidiaries met applicable capital requirements at the end of the second quarter, and BancFirst, Pegasus and Worthington were classified as well capitalized, according to the company’s quarterly SEC filing.

Dividend track record

The latest payment extends a 32-year run of consecutive dividend growth. BancFirst’s last annual cut was in 1993. The payment record shows a consistent step-up pattern: the quarterly amount was $0.46 for the December 31, 2024, March 31, 2025, and June 30, 2025, ex-dividend dates, then increased to $0.49 beginning with September 30, 2025. It remained at that level through June 30, 2026, before rising to $0.52.

Full-year distributions have advanced without interruption in the available history. The annual total rose from $1.32 in 2020 to $1.40 in 2021, $1.52 in 2022, $1.66 in 2023, $1.78 in 2024 and $1.90 in 2025. The corresponding annual increases ranged from 6.1% to 9.2%, showing steady growth rather than a single outsized adjustment.

Over the latest five-year period, the dividend recorded 7.6% annual growth. The new 6.1% increase is therefore consistent with BancFirst’s recent pace, although it is below the 9.2% annual increase recorded in 2023.

Is the dividend covered?

The dividend consumes 26% of earnings. That leaves most reported profit inside the business for capital, lending, acquisitions and protection against credit losses. For a regional bank, the retained portion also supports regulatory capital requirements and balance-sheet growth.

SmarterDividends rates BancFirst’s dividend A, with a safety score of 98. The grade means very safe, defined as a score from 80-100. It reflects the low earnings payout and long growth record, but it is not a guarantee. Credit quality, funding costs, regulatory capital and acquisition execution remain relevant to future coverage.

The latest quarterly filing strengthens the coverage picture because the company and its banking subsidiaries remained within regulatory capital requirements. The increase also left the earnings payout ratio at a level that provides a substantial buffer before all profit would be required for the dividend.

Yield and valuation

At a share price of $105.28, BancFirst’s $2.08 annual dividend produces a 1.96% forward yield. That is well below the Financial Services sector median forward yield of 5.76%. The lower yield means less current income relative to the broader sector, despite the company’s long growth record and low payout ratio. An investor holding 100 shares would receive $208.00 in annual dividend income at the new rate.

SmarterDividends estimates fair value at $228.23 and classifies the shares as undervalued. The estimate represents 110% upside to fair value from the stated share price. That valuation is an analytical estimate rather than a forecast, and it is separate from the dividend safety assessment. The shares recorded a 0.1% loss over the latest year.

What to watch

BancFirst’s pending acquisition of SpiritBank is the most concrete near-term business item. Management said regulatory approval remained pending and anticipated a fourth-quarter closing and conversion. The transaction would add Bristow and Sapulpa to BancFirst’s Tulsa-area operations and expand its presence in that market, according to the second-quarter earnings release.

The next results will provide updates on credit quality, margin trends, loan growth and acquisition timing. Nonaccrual loans represented 0.94% of total loans at the end of the second quarter, compared with 0.72% at the end of 2025, while the allowance for credit losses equaled 1.25% of loans. Those measures will help show whether the guarded economic view and higher loss provision remain compatible with the current level of dividend coverage.