Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for BOK Financial, with a focus on how actual results compare to estimates, which could significantly impact stock price [1][2]. Earnings Expectations - BOK Financial is expected to report quarterly earnings of $2.01 per share, reflecting a year-over-year increase of +5.2% [3]. - Revenues are projected to be $518.5 million, representing a 13.9% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4]. - The Most Accurate Estimate for BOK Financial is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.50%, suggesting a bearish sentiment among analysts [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict deviations from consensus estimates, with a strong predictive power for positive readings [6][8]. - BOK Financial's current Zacks Rank is 3, making it challenging to predict an earnings beat conclusively [11]. Historical Performance - In the last reported quarter, BOK Financial exceeded expectations by delivering earnings of $2.12 per share against an expected $1.97, resulting in a surprise of +7.61% [12]. - The company has beaten consensus EPS estimates in each of the last four quarters [13]. Industry Comparison - BancFirst, another player in the Southwest banking industry, is expected to report earnings of $1.58 per share, with a year-over-year change of +5.3% and revenues of $159.9 million, up 5.9% [17]. - BancFirst has an Earnings ESP of 2.22% but carries a Zacks Rank of 4 (Sell), complicating predictions for an earnings beat [18].

Company Overview - BOK Financial (BOKF) is headquartered in Tulsa and operates in the Finance sector, with a stock price change of -3.57% since the start of the year [3] - The company currently pays a dividend of $0.57 per share, resulting in a dividend yield of 2.22%, which is higher than the Banks - Southwest industry's yield of 1.16% and the S&P 500's yield of 1.57% [3] Dividend Performance - BOK Financial's current annualized dividend of $2.28 represents a 2.7% increase from the previous year [4] - Over the last 5 years, the company has increased its dividend 5 times, averaging an annual increase of 2.01% [4] - The current payout ratio is 28%, indicating that the company paid out 28% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for BOK Financial's earnings in 2025 is $8.60 per share, with an expected increase of 4.37% from the previous year [5] Investment Considerations - BOK Financial is viewed as an attractive dividend play and a compelling investment opportunity, holding a Zacks Rank of 2 (Buy) [7] - Income investors are generally attracted to dividends for various reasons, including tax advantages and reduced portfolio risk [6]

Core Viewpoint - BOK Financial Corporation (BOKF) is positioned for organic growth due to steady loan demand, robust deposit balances, and solid credit quality, although rising expenses are a concern [1]. Factors Aiding BOKF - **Loan & Deposits Growth**: BOKF has experienced continuous loan growth with a compound annual growth rate (CAGR) of 2% from 2018 to 2024, despite a decline in 2021. Deposits have shown a rising trend with a six-year CAGR of 7.1% [2]. - **Improving Asset Quality**: The company has seen a significant decline in non-performing assets with a negative CAGR of 24.6% over five years, and net charge-offs (NCOs) have also decreased with a negative CAGR of 40.9% during the same period [3]. - **Steady Capital Distribution**: BOKF has consistently increased dividends, with a 3.6% hike to 57 cents per share in October 2024. The company also has a share repurchase authorization of 5 million shares, with 1.54 million shares remaining as of December 31, 2024 [4]. What's Hurting BOK Financial - **Escalating Expenses**: Operating expenses have risen with a CAGR of 3.4% over the last six years, driven by investments in technology and increased employee compensation [5]. - **Loan Concentration**: A significant portion of BOKF's loan portfolio consists of commercial loans, which make up 62.3% of total loans as of December 31, 2024. This concentration may pose risks if the economic environment deteriorates [6]. BOKF Price Performance & Zacks Rank - BOKF shares have increased by 29.1% over the past year, slightly outperforming the industry average of 28.8% [7]. The company currently holds a Zacks Rank of 1 (Strong Buy) [9]. Peers Worth Considering - Other top-ranked bank stocks include BancFirst Corporation (BANF) and Cullen/Frost Bankers, Inc. (CFR), both of which have seen upward revisions in earnings estimates and significant share price gains over the past year [10][11].

Here are two stocks with buy rank and strong income characteristics for investors to consider today, February 25th:BOK Financial (BOKF) : This regional financial services company which provides various financial products and services in Oklahoma, Texas, New Mexico, Northwest Arkansas, Colorado, Arizona, and Kansas/Missouri, has witnessed the Zacks Consensus Estimate for its current year earnings increasing 4% over the last 60 days.This Zacks Rank #1 (Strong Buy) company has a dividend yield of 2.1%, compare ...

Financial Performance - Net income for the year ended December 31, 2024, totaled $523.6 million, or $8.14 per diluted share, compared to $530.7 million, or $8.02 per diluted share, for 2023[144]. - Net interest income for 2024 was $1.2 billion, a decrease of $61.4 million compared to the prior year, with a net interest margin of 2.65%[144]. - Fees and commissions revenue grew to $810.0 million for 2024, an increase of $28.9 million over 2023, driven by fiduciary and asset management revenue growth of $23.5 million[144]. - Other gains, net, were $79.7 million for 2024, including a $56.9 million pre-tax gain from Visa C shares received[144]. - Losses on available for sale securities totaled $45.8 million for 2024, compared to $30.6 million in the prior year[144]. - Other operating expenses increased by $32.9 million to $1.4 billion, with personnel expenses growing by $44.6 million[144]. - The return on average assets was 1.03% for 2024, down from 1.10% in 2023[140]. - The return on average shareholders' equity was 9.82% for 2024, compared to 10.82% in 2023[140]. - The dividend payout ratio was 27.20% for 2024, slightly up from 27.00% in 2023[140]. - The provision for credit losses was $18.0 million in 2024, with net charge-offs of $12.9 million or 0.05% of average loans, compared to $18.1 million or 0.08% in 2023[146]. Assets and Liabilities - Total assets as of December 31, 2024, amount to $50,749,498, with total earning assets at $45,538,838 generating net interest income of $1,210,758[168]. - Total interest-bearing liabilities amount to $35,538,618, with a net interest income to earning assets ratio of 2.65%[168]. - The tangible common equity ratio improved to 9.17% at December 31, 2024, up from 8.29% at December 31, 2023[146]. - Average outstanding loan balances increased by $1.0 billion to $24.2 billion, driven by a $741 million increase in commercial loans and a $394 million increase in loans to individuals[146]. - Average deposits rose by $3.1 billion to $36.3 billion, with average interest-bearing deposits increasing by $5.4 billion[146]. Revenue Streams - Mortgage production revenue for 2024 was $8.739 million, a significant increase from a loss of $5.339 million in 2023[194]. - Total mortgage production volume reached $814.070 million in 2024, up from $655.682 million in 2023, representing a 24% increase[194]. - Mortgage servicing revenue increased to $65.368 million in 2024, compared to $61.037 million in 2023, reflecting a 7% growth[194]. - Brokerage and trading revenue decreased by $22.5 million, or 9%, to $218.1 million in 2024 compared to 2023[180]. - Transaction card revenue increased by $2.0 million, or 2%, totaling $108.9 million in 2024[186]. - Fiduciary and asset management revenue rose by $23.5 million, or 11%, reaching $230.9 million in 2024[188]. - Deposit service charges and fees increased by $10.2 million, or 9%, totaling $118.7 million in 2024[192]. - Customer hedging revenue decreased by $8.8 million, or 24%, totaling $27.7 million in 2024[182]. - Investment banking fees increased by $6.1 million, or 14%, totaling $49.1 million in 2024[183]. - Retail brokerage revenue increased by $3.5 million, or 22%, totaling $19.4 million in 2024[184]. Operational Insights - BOK Financial employs 5,056 full-time and part-time employees, with the majority being full-time[30]. - The company operates three principal segments: Commercial Banking, Consumer Banking, and Wealth Management[24]. - The company continues to evaluate and deploy emerging technologies like AI, which present both opportunities and regulatory compliance challenges[103]. - The company is heavily reliant on third-party vendors for critical infrastructure, which poses risks of operational errors and system interruptions[104]. - Cybersecurity risks have increased significantly, necessitating robust risk management programs to protect customer data and maintain operational integrity[99]. - The company has not experienced material losses from cyber attacks to date, but the risk remains heightened, and ongoing investment in cybersecurity measures is a priority[102]. Market Position and Strategy - The company holds 14% of total deposits in Oklahoma, with 30% market share in Tulsa and 13% in Oklahoma City[27]. - BOK Financial's acquisition strategy targets quality organizations with solid growth to supplement its principal lines of business[20]. - The company has a market share of approximately 1% in the Dallas-Fort Worth area and less than 1% in Houston[28]. - BOK Financial does not engage in foreign operations or lend to foreign governments, focusing solely on domestic markets[69]. - The company is subject to regulatory scrutiny regarding acquisitions and investments, which could limit growth opportunities[75]. Regulatory Environment - The company is subject to extensive regulations under federal and state laws, including the Dodd-Frank Act[32]. - The CFPB finalized a rule regulating overdraft fees, allowing institutions to cap fees at $5 or cover actual costs, effective October 1, 2025[46]. - BOKF, NA received an "outstanding" rating in its most recent CRA examination, exceeding the "satisfactory" requirement for new activities[46]. - The FDIC approved a special assessment of 3.36 basis points on certain banking organizations with over $5 billion in assets to recover costs from protecting uninsured depositors[56]. - The FDIC's plan aims to restore the DIF reserve ratio to at least 1.35% by September 30, 2028, with increased deposit insurance assessment rates effective January 1, 2023[55]. - Regulatory changes and compliance costs may increase as BOK Financial's asset size grows above $50 billion, impacting future growth potential[76]. Economic Factors - The unemployment rate increased slightly to 4.0% in December 2024, indicating ongoing economic challenges[66]. - The base case economic forecast predicts inflation will reach 2.4% by the end of 2025, with two additional federal funds rate cuts anticipated[67]. - BOK Financial's operations are influenced by regulatory policies, particularly those of the Federal Reserve, which aim to maximize employment and maintain price stability[65]. - The recent downgrade of the U.S. long-term credit rating from AAA to AA+ by Fitch Ratings could have material adverse impacts on financial markets and economic conditions[78]. - Prolonged inflation could negatively impact profitability by increasing funding costs and reducing consumer purchasing power, affecting demand for products and services[112]. Funding and Interest Rate Risks - Fluctuations in interest rates significantly affect BOK Financial's ability to originate new loans and manage net interest income[88]. - The company relies on external funding sources, and disruptions in the market could impair its ability to access necessary capital[94]. - Changes in mortgage interest rates directly impact BOK Financial's mortgage banking operations and revenue from mortgage servicing rights[89]. - Increased funding costs if deposits are lost or if there is a shift in deposit mix could negatively impact net interest margin and net income[95]. - Average interest-bearing deposits increased by $954 million, primarily from interest-bearing transaction accounts[171].

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Core Viewpoint - BOK Financial (BOKF) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive outlook driven by an upward trend in earnings estimates [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which significantly influence stock prices, particularly due to institutional investors' reliance on these estimates for valuation [4][6]. - An increase in earnings estimates typically leads to higher fair value for a stock, prompting institutional investors to buy or sell, which in turn affects stock price movements [4]. Recent Performance and Projections - For the fiscal year ending December 2025, BOK Financial is projected to earn $8.71 per share, reflecting a 5.7% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for BOK Financial has risen by 2.9%, indicating a positive trend in earnings expectations [8]. Zacks Rank System Overview - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - The upgrade to Zacks Rank 2 places BOK Financial in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Core Insights - The article emphasizes the importance of the Zacks Rank system and its focus on earnings estimates and revisions to identify strong stocks [1] - Value investing is highlighted as a preferred strategy for finding undervalued stocks across various market conditions [2] - The Style Scores system is introduced, particularly the "Value" category, which helps identify stocks with high value grades and strong Zacks Ranks [3] Company Analysis: BOK Financial (BOKF) - BOKF currently holds a Zacks Rank of 2 (Buy) and an A grade for Value, indicating strong investment potential [4] - The stock's P/E ratio is 12.93, which is lower than the industry average of 14.76, suggesting it may be undervalued [4] - BOKF's Forward P/E has fluctuated between 10.49 and 14.18 over the past year, with a median of 12.21 [4] - The P/B ratio for BOKF is 1.26, significantly lower than the industry's average of 2.05, indicating attractive valuation [5] - Over the past year, BOKF's P/B has ranged from 1.02 to 1.37, with a median of 1.19 [5] - The P/S ratio for BOKF is 2.07, which is slightly below the industry average of 2.23, reinforcing its value proposition [6] - BOKF's P/CF ratio stands at 11.84, compared to the industry's average of 17.41, further indicating potential undervaluation [7] - The combination of these valuation metrics suggests that BOKF is likely undervalued, supported by a strong earnings outlook [8]

Q4 Earnings Conference Call January 21, 2025 Legal Disclaimers This presentation contains forward-looking statements that are based on management's beliefs, assumptions, current expectations, estimates and projections about BOK Financial Corporation, the financial services industry, and the economy generally. Words such as "anticipates," "extimates," "expects" fforecasts," "blans" "outlook." "projects, "will, "fintends, "variations of such words and similar expressions are intended to identify such forward- ...