BOK Financial Corporation’s (BOKF) first-quarter 2024 adjusted earnings per share (EPS) of $1.91 beat the Zacks Consensus Estimate of $1.72. The bottom line compared unfavorably with earnings of $2.43 per share reported a year ago.Shares of BOKF have gained 2.1% following the release of its higher-than-expected quarterly performance.The results benefited from a rise in total fees and commissions, higher loans and deposit balances. Moreover, a decline in provisions was another positive. However, lower net in ...

BOK Financial Corporation (NASDAQ:BOKF) Q1 2024 Earnings Conference Call April 24, 2024 10:00 AM ET Company Participants Heather Worley - Director of Investor Relations Stacy Kymes - President and Chief Executive Officer Martin Grunst - Executive Vice President and Chief Financial Officer Marc Maun - Executive Vice President, Regional Banking Scott Grauer - Executive Vice President, Wealth Management Conference Call Participants Jon Arfstrom - RBC Capital Markets Peter Winter - D.A. Davidson Ben Gerlinger - ...

BOK Financial (BOKF) reported $455.27 million in revenue for the quarter ended March 2024, representing a year-over-year decline of 14.1%. EPS of $1.91 for the same period compares to $2.43 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $473.7 million, representing a surprise of -3.89%. The company delivered an EPS surprise of +11.05%, with the consensus EPS estimate being $1.72.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- a ...

'18 '22 Med '13 100 year history in energy lending and a tested playbook that works 7 Pri m ar y & se co nd ar y br an d co lor s Data viz colors Data viz monochromatic • Credit quality remains better than pre-pandemic level with a decline in non-performing assets during the quarter • CRE office exposure is less than 4% of outstanding period end total loan balances, with properties in resilient markets Committed Criticized Assets / Tier 1 Capital & Reserves CRE Office by Location In Footprint, 66% Out of Fo ...

BOK Financial (BOKF) came out with quarterly earnings of $1.91 per share, beating the Zacks Consensus Estimate of $1.72 per share. This compares to earnings of $2.43 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 11.05%. A quarter ago, it was expected that this Regional banking operator would post earnings of $1.72 per share when it actually produced earnings of $1.78, delivering a surprise of 3.49%.Over the last four quarter ...

[Financial Highlights & CEO Commentary](index=1&type=section&id=Financial%20Highlights%20%26%20CEO%20Commentary) Key financial results for Q1 2024 are presented, alongside the CEO's commentary on performance and strategic outlook [First Quarter 2024 Financial Highlights](index=1&type=section&id=First%20Quarter%202024%20Financial%20Highlights) BOK Financial reported Q1 2024 net income of **$83.7 million** (**$1.29** EPS), with adjusted figures of **$123.2 million** (**$1.91** EPS) after accounting for special items Q1 2024 Key Financial Metrics | Metric | Q1 2024 | Q4 2023 | Change | | :--- | :--- | :--- | :--- | | Net Income | $83.7 million | $82.6 million | +$1.1 million | | Diluted EPS | $1.29 | $1.26 | +$0.03 | | Adjusted Net Income (Non-GAAP) | $123.2 million | N/A | N/A | | Adjusted EPS (Non-GAAP) | $1.91 | N/A | N/A | | Net Interest Revenue | $293.6 million | $296.7 million | -$3.1 million | | Net Interest Margin | 2.61% | 2.64% | -3 bps | | Period End Loans | $24.2 billion | $23.9 billion | +$268 million | | Period End Deposits | $35.4 billion | $34.0 billion | +$1.4 billion | | Loan to Deposit Ratio | 68% | 70% | -2% | - CEO commentary highlighted a **stabilizing net interest margin**, **strong asset quality**, and **continued operating revenue growth**[31](index=31&type=chunk) - The company repositioned its securities portfolio, realizing a loss in Q1, in anticipation of a gain in Q2 from monetizing VISA B shares, which is expected to improve future net interest margin and revenue[31](index=31&type=chunk) [Financial Results Analysis](index=2&type=section&id=Financial%20Results%20Analysis) Detailed review of the company's net interest revenue, other operating revenue, and operating expenses [Net Interest Revenue](index=2&type=section&id=Net%20Interest%20Revenue) Net interest revenue decreased slightly to **$293.6 million** in Q1 2024, with net interest margin compressing to **2.61%** due to rising funding costs Net Interest Revenue and Margin (Q1 2024 vs Q4 2023) | Metric | Q1 2024 | Q4 2023 | Change | | :--- | :--- | :--- | :--- | | Net Interest Revenue | $293.6 million | $296.7 million | -$3.1 million | | Net Interest Margin | 2.61% | 2.64% | -0.03% | | Average Earning Assets | $44.85 billion | $44.33 billion | +$0.52 billion | | Yield on Earning Assets | 5.73% | N/A | +9 bps | | Funding Costs | 4.08% | N/A | +10 bps | - Average loan balances grew by **$243 million**, and average available for sale securities increased by **$475 million**[20](index=20&type=chunk) - This was funded by a **$2.1 billion** increase in average interest-bearing deposits, which allowed for a **$1.2 billion** reduction in higher-cost funds purchased and repurchase agreements[20](index=20&type=chunk) [Other Operating Revenue](index=3&type=section&id=Other%20Operating%20Revenue) Other operating revenue decreased to **$161.7 million** in Q1 2024, primarily due to a **$45.2 million** loss on securities repositioning, despite growth in fees and commissions - The company repositioned its available for sale securities portfolio by selling approximately **$783 million** of lower-yielding debt securities, resulting in a **$45.2 million** loss[35](index=35&type=chunk) - This is expected to be offset by a gain on the conversion of Visa B shares in Q2 2024[35](index=35&type=chunk) Fees and Commissions Revenue Breakdown (Q1 2024 vs Q4 2023) | Revenue Source | Q1 2024 | Q4 2023 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Mortgage banking revenue | $19.0M | $12.8M | +$6.1M | +47.8% | | Fiduciary and asset management | $55.3M | $51.4M | +$3.9M | +7.6% | | Brokerage and trading | $59.2M | $60.9M | -$1.7M | -2.8% | | Transaction card revenue | $25.5M | $28.8M | -$3.4M | -11.6% | | **Total Fees and Commissions** | **$200.6M** | **$196.8M** | **+$3.8M** | **+1.9%** | [Operating Expenses](index=4&type=section&id=Operating%20Expenses) Total operating expenses decreased significantly to **$340.4 million** in Q1 2024, primarily driven by a **$37.3 million** reduction in the FDIC special assessment - The primary driver for the decrease in operating expenses was a reduction in non-personnel expense, mainly due to the FDIC special assessment being **$43.8 million** in Q4 2023 versus an additional **$6.5 million** recognized in Q1 2024[2](index=2&type=chunk) Operating Expense Breakdown (Q1 2024 vs Q4 2023) | Expense Category | Q1 2024 | Q4 2023 | Change | | :--- | :--- | :--- | :--- | | Personnel | $202.7M | $203.0M | -$0.3M | | FDIC special assessment | $6.5M | $43.8M | -$37.3M | | Professional fees and services | $12.0M | $16.3M | -$4.3M | | **Total Operating Expense** | **$340.4M** | **$384.1M** | **-$43.7M** | [Balance Sheet Analysis](index=5&type=section&id=Balance%20Sheet%20Analysis) Detailed analysis of the company's balance sheet components, including loans, deposits, funding, and securities portfolios [Loans](index=5&type=section&id=Loans) Total loans increased by **$268 million** to **$24.2 billion** in Q1 2024, driven by commercial loan growth, partially offset by a decline in commercial real estate loans Loan Portfolio Composition (March 31, 2024) | Loan Category | Balance | vs. Q4 2023 Change | % of Total Loans | | :--- | :--- | :--- | :--- | | Commercial | $15.1B | +$329M | 63% | | Commercial Real Estate | $5.2B | -$101M | 22% | | Loans to Individuals | $3.8B | +$39M | 16% | | **Total Loans** | **$24.2B** | **+$268M** | **100%** | - Within the commercial portfolio, healthcare loans grew by **$103 million** and general business loans increased by **$267 million**[69](index=69&type=chunk) - Energy loan balances remained stable at **$3.4 billion**[69](index=69&type=chunk) [Deposits and Funding](index=6&type=section&id=Deposits%20and%20Funding) Period-end deposits grew by **$1.4 billion** to **$35.4 billion** in Q1 2024, driven by interest-bearing accounts, improving the loan-to-deposit ratio to **68%** Deposit Composition (March 31, 2024 vs Dec 31, 2023) | Deposit Type | Q1 2024 Balance | Change from Q4 2023 | | :--- | :--- | :--- | | Demand | $8.4B | -$782M | | Interest-bearing transaction | $22.7B | +$1,784M | | Time | $3.4B | +$355M | | **Total Deposits** | **$35.4B** | **+$1,364M** | - The shift from demand deposits to interest-bearing accounts continued, reflecting the higher interest rate environment[26](index=26&type=chunk) - By segment, Wealth Management deposits saw the largest increase, growing by **$1.2 billion**[26](index=26&type=chunk) [Securities & Derivatives](index=8&type=section&id=Securities%20%26%20Derivatives) The AFS securities portfolio increased to **$12.7 billion** in Q1 2024, with net unrealized losses widening slightly, while the trading securities portfolio grew to **$5.4 billion** - The AFS portfolio at March 31, 2024 consisted mainly of **$7.8 billion** in residential mortgage-backed securities and **$3.7 billion** in commercial mortgage-backed securities, both fully backed by U.S. government agencies[12](index=12&type=chunk) - The net benefit from changes in the fair value of mortgage servicing rights and their related economic hedges was **$1.2 million** during the first quarter[12](index=12&type=chunk) [Credit Quality](index=7&type=section&id=Credit%20Quality) Credit quality remained strong in Q1 2024, with nonperforming assets decreasing to **$122 million** and a low net charge-off rate of **0.09%** Key Credit Quality Indicators (Q1 2024 vs Q4 2023) | Metric | Q1 2024 | Q4 2023 | | :--- | :--- | :--- | | Nonperforming Assets | $122 million | $148 million | | NPAs as % of Loans & Repossessed Assets | 0.51% | 0.62% | | Net Charge-offs (annualized) | 0.09% | 0.07% | | Provision for Credit Losses | $8.0 million | $6.0 million | - Nonaccruing loans decreased by **$26 million** from the previous quarter, driven by a **$32 million** reduction in nonaccruing healthcare loans[73](index=73&type=chunk) - The combined allowance for loan losses and accrual for off-balance sheet credit risk was **$329 million**, representing **1.36%** of outstanding loans and **298%** of nonaccruing loans, an improvement in coverage from **240%** in the prior quarter[74](index=74&type=chunk) [Capital Management](index=7&type=section&id=Capital%20Management) The company maintained a strong capital position in Q1 2024, with a CET1 ratio of **11.99%** and share repurchases totaling **616,630 shares** Regulatory Capital Ratios (March 31, 2024 vs Dec 31, 2023) | Ratio | Q1 2024 | Q4 2023 | Well-Capitalized Minimum | | :--- | :--- | :--- | :--- | | Common Equity Tier 1 | 11.99% | 12.06% | 7.00% | | Tier 1 Capital | 12.00% | 12.07% | 8.50% | | Total Capital | 13.15% | 13.16% | 10.50% | | Leverage Ratio | 9.42% | 9.45% | 4.00% | - The company repurchased **616,630 shares** for a total of approximately **$51.7 million** in Q1 2024[42](index=42&type=chunk)[72](index=72&type=chunk) [Segment Performance](index=8&type=section&id=Segment%20Performance) Analysis of financial performance across the company's key business segments, including Commercial, Consumer, and Wealth Management [Segment Highlights](index=8&type=section&id=Segment%20Highlights) Commercial Banking remained the largest net income contributor at **$153.3 million**, while Consumer Banking was stable and Wealth Management's income decreased due to a prior-quarter gain Segment Net Income (Q1 2024 vs Q4 2023) | Segment | Q1 2024 Net Income | Q4 2023 Net Income | Change | | :--- | :--- | :--- | :--- | | Commercial Banking | $153.3M | $171.1M | -$17.8M | | Consumer Banking | $53.8M | $53.7M | +$0.1M | | Wealth Management | $34.2M | $62.7M | -$28.5M | - Commercial Banking's income decline was driven by a deposit mix shift and decreased spreads[45](index=45&type=chunk)[77](index=77&type=chunk) - Consumer Banking's performance was buoyed by a **$1.2 million** net benefit from MSR hedging, compared to a **$5.2 million** cost in Q4[45](index=45&type=chunk)[77](index=77&type=chunk) - Wealth Management's results were skewed by a **$31.0 million** pre-tax gain on the sale of BOKFI in Q4 2023[45](index=45&type=chunk)[77](index=77&type=chunk) [Appendix: Financial Statements and Reconciliations](index=10&type=section&id=Appendix%3A%20Financial%20Statements%20and%20Reconciliations) Comprehensive appendix providing detailed financial statements, loan and deposit portfolio breakdowns, credit quality indicators, and non-GAAP reconciliations [Consolidated Financial Statements](index=10&type=section&id=Consolidated%20Financial%20Statements) Unaudited Consolidated Balance Sheets and Statements of Earnings are presented, including five-quarter trends for key financial performance - Total assets stood at **$50.16 billion** as of March 31, 2024, a slight increase from **$49.82 billion** at December 31, 2023[13](index=13&type=chunk) - Total liabilities increased to **$45.03 billion** from **$44.68 billion**, while total equity slightly decreased to **$5.13 billion** from **$5.14 billion** over the same period[13](index=13&type=chunk) [Loan and Deposit Portfolio Details](index=20&type=section&id=Loan%20and%20Deposit%20Portfolio%20Details) Detailed breakdowns of loan and deposit portfolios by principal market area are provided, showing geographical business concentration over five quarters - Texas and Oklahoma represent the two largest markets for both loans and deposits[101](index=101&type=chunk)[93](index=93&type=chunk) - As of March 31, 2024, Texas held **$10.4 billion** in loans and Oklahoma held **$18.4 billion** in deposits[101](index=101&type=chunk)[93](index=93&type=chunk) [Credit Quality Indicators](index=25&type=section&id=Credit%20Quality%20Indicators) Detailed tables on credit quality trends over five quarters are presented, including nonperforming assets, charge-off data, and allowance ratios - The allowance for loan losses to period-end loans ratio was **1.17%** at March 31, 2024, a slight increase from **1.16%** in the prior quarter[67](index=67&type=chunk) - The coverage ratio of allowance for loan losses to nonaccruing loans improved significantly to **255.33%** from **204.13%**[67](index=67&type=chunk) [Explanation of Non-GAAP Measures](index=17&type=section&id=Explanation%20of%20Non-GAAP%20Measures) Definitions and reconciliations for non-GAAP financial measures, including tangible common equity ratio and adjusted net income, are provided for investor insight Reconciliation of Net Income and EPS (Q1 2024) | Metric | As Reported (GAAP) | Adjustments | Adjusted (Non-GAAP) | | :--- | :--- | :--- | :--- | | Net Income | $83.7M | +$39.5M | $123.2M | | Diluted EPS | $1.29 | +$0.62 | $1.91 | - Key non-GAAP adjustments for Q1 2024 included adding back the FDIC special assessment (**$4.9M** net of tax) and the loss on repositioning of AFS securities (**$34.5M** net of tax)[57](index=57&type=chunk)

BOK Financial Corporation (BOKF) is well-poised for revenue growth on the back of steady loan demand. High interest rates, robust deposit balance and a solid asset quality will continue to support its financials. However, elevated expenses and high debt remain concerns given limited liquidity.BOK Financial demonstrated continued loan growth on account of diversified portfolio. Though loans declined in 2021, it witnessed a compound annual growth rate (CAGR) of 2% in the last five years (2018-2023). Concurren ...

Deposits and Loan-to-Deposit Ratio - Average deposits for 2023 totaled $33.2 billion, a decrease of $4.6 billion compared to the prior year[349] - Average deposits attributed to Commercial Banking were $15.3 billion for 2023, a $3.0 billion or 16% decrease compared to 2022[350] - Total brokered deposits represented 2% of total average deposits in 2023[351] - Estimated uninsured deposits totaled $18.7 billion or 55% of total deposits at December 31, 2023[354] - The loan to deposit ratio increased to 70% at December 31, 2023 from 65% at December 31, 2022[348] Capital Ratios and Equity - Common equity Tier 1 capital increased to 12.06% in December 2023, up from 11.69% in 2022[361] - Total capital ratio rose to 13.16% in December 2023, compared to 12.67% in 2022[361] - Tangible common equity ratio improved to 8.29% in December 2023, up from 7.63% in 2022[363] - Adjusted tangible common equity ratio increased to 8.02% in December 2023, compared to 7.36% in 2022[363] - Return on average tangible common equity was 14.00% in December 2023, slightly down from 14.12% in 2022[363] Net Interest Revenue and Margin - Net interest revenue excluding trading activities increased to $1.295 billion in December 2023, up from $1.166 billion in 2022[364] - Net interest margin on average interest-earning assets excluding trading activities rose to 3.31% in December 2023, compared to 3.26% in 2022[364] - Efficiency ratio excluding adjustments improved to 61.42% in December 2023, down from 61.63% in 2022[364] - Pre-provision net revenue increased to $728.9 million in December 2023, up from $690.1 million in 2022[363] Interest Rate Sensitivity and Risk Management - The company's internal policy limit for net interest revenue variation due to a 200 basis point parallel change in market interest rates over twelve months is a maximum decline of 6.5%[371] - Anticipated impact over the next twelve months on net interest revenue: 200 bp increase results in $36.1 million, while a 100 bp increase results in $8.9 million. A 200 bp decrease results in $2.9 million, and a 100 bp decrease results in $7.9 million[373] - Anticipated impact over months twelve through twenty-four: A 200 bp increase results in $10.98 million, while a 100 bp increase results in $8.44 million. A 200 bp decrease results in $73.77 million, and a 100 bp decrease results in $42.66 million[373] - The Board has approved a $7 million market risk limit for the mortgage production pipeline, net of forward sale contracts[376] - The Board has approved a $20 million market risk limit for mortgage servicing rights, net of economic hedges[400] - MSR Asset sensitivity: Up 50 bp results in $7.97 million, while Down 50 bp results in -$9.88 million for 2023. For 2022, Up 50 bp results in $6.1 million, and Down 50 bp results in -$8.2 million[401] - MSR Hedge sensitivity: Up 50 bp results in -$8.44 million, while Down 50 bp results in $8.61 million for 2023. For 2022, Up 50 bp results in -$7.4 million, and Down 50 bp results in $6.81 million[401] - Net Exposure sensitivity: Up 50 bp results in -$470,000, while Down 50 bp results in -$1.27 million for 2023. For 2022, Up 50 bp results in -$1.3 million, and Down 50 bp results in -$1.39 million[401] - The Company conducts sensitivity analysis by shocking interest rates up and down 50 basis points to measure market risk[407] Market Risk and VaR Metrics - The Company calculates VaR using a historical simulation approach with a 10-day holding period and a 99% confidence level[378] - SVaR is calculated over a ten-day holding period at a one-tail, 99% confidence level using a historical simulation approach based on a continuous twelve-month historical window[379] - The average 10-day 99% VaR for the trading portfolio was $4,757 thousand in Q4 2023, compared to $5,954 thousand in Q3 2023 and $3,927 thousand in Q4 2022[406] - The period-end 10-day 99% VaR decreased to $2,977 thousand in Q4 2023 from $6,455 thousand in Q3 2023, primarily due to reduced interest rate risk exposure[405][406] - The average 10-day 99% SVaR for the trading portfolio was $8,154 thousand in Q4 2023, compared to $6,118 thousand in Q3 2023 and $7,091 thousand in Q4 2022[406] - The period-end 10-day 99% SVaR decreased to $4,925 thousand in Q4 2023 from $6,455 thousand in Q3 2023[406] - The Board approved an $11 million interest rate risk limit for the trading portfolio, net of economic hedges[407] Model Risk Management and Validation - The Company regularly updates historical data used by the VaR model and performs independent model validations to ensure accuracy[406] - Model Risk Management staff enforces a governance program that includes remediation actions and restrictions on model usage[408] - Models are validated through an evaluation process assessing data, theory, implementation, outcomes, and governance, with results categorized as "Approved for use," "Approved with findings," or "Unapproved"[409] - Model validation staff maintain independence from both developers and users of the models[409] Repossessed Assets and Share Repurchases - Real estate and other repossessed assets totaled $2.9 million at December 31, 2023, a decrease of $11 million compared to December 31, 2022[347] - The Company repurchased 2,113,808 shares during 2023 at an average price of $82.85 per share[358] LIBOR Transition and Vendor Reliance - The Company ceased production of new LIBOR-based exposure as of December 31, 2021 and now offers floating rate products in various alternative reference rates[343] - The Company is heavily reliant on a single vendor for information systems, communications, data management, and transaction processing[62] FDIC Special Assessment - The cost of resolving the recent bank failures has prompted the FDIC to issue a special assessment to recover costs to the Deposit Insurance Fund[59] Mortgage Risk Management - The Company uses forward sale contracts to mitigate market risk on all closed mortgage loans held for sale and on an estimate of mortgage loan commitments expected to result in closed loans[401]

Mastercard has launched an expanded payments partnership with Oklahoma’s BOK Financial.The collaboration, announced Tuesday (Jan. 30), makes Mastercard the exclusive payments network for BOK’s debit and commercial portfolios, and expands the company’s relationship with BOK’s TransFund processing businesses.“Both companies will build an innovative, inclusive, and sustainable future in banking, grounded in the shared values of advancing the communities they serve,” Mastercard said in a news release.According ...

BOK Financial Corporation’s (BOKF) fourth-quarter 2023 adjusted earnings per share of $1.78 beat the Zacks Consensus Estimate of $1.72. The bottom line compared unfavorably to the earnings of $2.51 per share a year ago.The results benefited from a rise in total fees and commissions and higher loans and deposit balances. Moreover, the provisions witnessed a significant decline. However, lower net interest revenues and elevated expenses were the major undermining factors.The results excluded the charges relat ...