Core Insights - The article emphasizes the importance of a ranking system that focuses on earnings estimates and revisions to identify winning stocks, while also considering various investment strategies such as value, growth, and momentum [1][2] Company Analysis - BOK Financial (BOKF) is highlighted as a stock to watch, currently holding a Zacks Rank of 2 (Buy) and an A for Value, indicating strong potential for value investors [4][7] - BOKF has a P/E ratio of 11.04, which is lower than the industry average of 11.74, suggesting it may be undervalued compared to its peers [4] - The stock's Forward P/E has fluctuated between 7.57 and 12.27 over the past year, with a median of 10.54, indicating variability in market perception [4] - BOKF's P/B ratio stands at 1.10, which is favorable compared to the industry average of 1.66, further supporting the notion of undervaluation [5] - The P/B ratio has ranged from 0.87 to 1.25 in the past 52 weeks, with a median of 1.11, reflecting stability in its valuation metrics [5] - The P/CF ratio for BOKF is 10.44, which is attractive compared to the industry average of 13.46, reinforcing its undervalued status based on cash flow [6] - The P/CF ratio has seen a range from 5.89 to 11.48 over the past year, with a median of 7.99, indicating a solid cash outlook [6] - Overall, BOKF's strong value metrics and positive earnings outlook position it as an impressive value stock at the moment [7]

Core Viewpoint - The Zacks rating system effectively utilizes earnings estimate revisions to predict near-term stock price movements, making it a valuable tool for investors [2][7]. Group 1: Zacks Rating System - The Zacks rating system maintains an equal distribution of 'buy' and 'sell' ratings across over 4000 stocks, with only the top 20% receiving favorable ratings [3]. - A stock's placement in the top 20% indicates strong earnings estimate revisions, suggesting potential for market-beating returns [3][15]. - The Zacks Rank stock-rating system has a proven track record, with Zacks Rank 1 stocks averaging a +25% annual return since 1988 [12]. Group 2: BOK Financial Analysis - BOK Financial (BOKF) has been upgraded to a Zacks Rank 2 (Buy) due to a positive trend in earnings estimates, which is a significant factor influencing stock prices [4][5]. - Over the past three months, the Zacks Consensus Estimate for BOK Financial has increased by 0.5% [8]. - The upgrade reflects an improvement in BOK Financial's underlying business, which is expected to drive the stock price higher [11][15]. Group 3: Earnings Estimate Revisions Impact - Changes in earnings estimates are strongly correlated with near-term stock price movements, influenced by institutional investors who adjust their valuations based on these estimates [6]. - Tracking earnings estimate revisions can be a rewarding strategy for investment decisions, highlighting the importance of the Zacks Rank system [7].

[Part I. Financial Information](index=3&type=section&id=Part%20I.%20Financial%20Information) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=3&type=section&id=Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) BOK Financial's Q1 2024 net income slightly increased, impacted by a securities portfolio loss and FDIC assessment, alongside loan and deposit growth [Performance Summary](index=3&type=section&id=Performance%20Summary) BOK Financial's Q1 2024 net income slightly increased to $83.7 million, despite a securities portfolio loss, alongside loan and deposit growth and strong capital Q1 2024 Key Financial Results | Metric | Q1 2024 | Q4 2023 | | :--- | :--- | :--- | | Net Income | $83.7 million | $82.6 million | | Diluted EPS | $1.29 | $1.26 | | Adjusted Net Income (Non-GAAP) | $123.2 million | N/A | | Adjusted EPS (Non-GAAP) | $1.91 | N/A | - The company recorded a **$45.2 million loss** from repositioning its available for sale securities portfolio by selling approximately **$783 million** of lower-yielding debt securities[5](index=5&type=chunk) - An expected gain from the conversion of Visa Class B shares is anticipated to offset the realized losses from the securities portfolio repositioning[5](index=5&type=chunk)[43](index=43&type=chunk) Balance Sheet and Capital Highlights (as of March 31, 2024) | Metric | Value | Change from Q4 2023 | | :--- | :--- | :--- | | Period End Loans | $24.2 billion | +$268 million | | Period End Deposits | $35.4 billion | +$1.4 billion | | Assets Under Management | $105.5 billion | +$794 million | | Common Equity Tier 1 Capital Ratio | 11.99% | -7 bps | - The company repurchased **616,630 shares** of common stock at an average price of **$83.89 per share** during the first quarter of 2024[44](index=44&type=chunk) [Results of Operations](index=5&type=section&id=Results%20of%20Operations) Operating results showed declining net interest revenue from margin compression, a $45.2 million securities loss impacting other revenue, and lower expenses due to reduced FDIC assessment - Tax-equivalent net interest revenue decreased by **$3.1 million** quarter-over-quarter to **$295.7 million**, driven by a **3 basis point decline** in net interest margin to **2.61%**[5](index=5&type=chunk)[17](index=17&type=chunk) - Other operating revenue decreased by **$43.2 million** from the prior quarter, mainly due to a **$45.2 million loss** on repositioning the AFS securities portfolio and the absence of a **$31.0 million gain** on the sale of BOKFI that was recognized in Q4 2023[19](index=19&type=chunk) - Total other operating expense decreased by **$43.7 million** quarter-over-quarter, largely because Q4 2023 included a **$43.8 million FDIC special assessment**, while Q1 2024 included a smaller, additional assessment of **$6.5 million**[5](index=5&type=chunk)[53](index=53&type=chunk) [Lines of Business](index=13&type=section&id=Lines%20of%20Business) Commercial Banking's net income decreased by 10%, Consumer Banking remained stable, and Wealth Management's net income fell 46% due to a prior quarter gain Net Income by Line of Business (in thousands) | Line of Business | Q1 2024 | Q4 2023 | % Change | | :--- | :--- | :--- | :--- | | Commercial Banking | $153,250 | $171,084 | (10)% | | Consumer Banking | $53,804 | $53,695 | 0% | | Wealth Management | $34,165 | $62,690 | (46)% | | **Subtotal** | **$241,219** | **$287,469** | **(16)%** | - Commercial Banking's net income decreased by **$17.8 million**, or **10%**, compared to Q4 2023[33](index=33&type=chunk) - Consumer Banking's net income remained consistent with the prior quarter, with increased mortgage banking revenue offsetting a decline in net interest revenue[36](index=36&type=chunk)[86](index=86&type=chunk) - Wealth Management's net income decreased by **$28.5 million**, or **46%**, largely because Q4 2023 included a **$31.0 million pre-tax gain** on the sale of BOKFI[37](index=37&type=chunk) [Financial Condition](index=19&type=section&id=Financial%20Condition) As of March 31, 2024, the company's financial condition remained solid, with loan growth to $24.2 billion, deposits increasing by $1.4 billion, and strong capital ratios - The loan portfolio grew by **$268 million** to **$24.2 billion** at March 31, 2024, driven by growth in commercial loans, partially offset by a reduction in commercial real estate loans[67](index=67&type=chunk) - The combined allowance for credit losses was **$329 million**, or **1.36%** of outstanding loans, consistent with the prior quarter-end[15](index=15&type=chunk) - Period-end deposits increased by **$1.4 billion** to **$35.4 billion** compared to December 31, 2023[15](index=15&type=chunk) - The company's capital ratios remain strong, with a Common Equity Tier 1 capital ratio of **11.99%** and a total capital ratio of **13.15%** at March 31, 2024[44](index=44&type=chunk)[143](index=143&type=chunk) [Market Risk](index=40&type=section&id=Market%20Risk) The company manages interest rate risk, its primary market risk, with an asset-sensitive balance sheet, and also mitigates MSR and trading risks using VaR and stress testing Interest Rate Sensitivity on Net Interest Revenue (Next 12 Months) | Rate Shock | Estimated Impact on NIR | % Change | | :--- | :--- | :--- | | +200 bp | ($29.9 million) | (2.31)% | | +100 bp | ($4.6 million) | (0.35)% | | -100 bp | ($2.5 million) | (0.20)% | | -200 bp | $0.9 million | 0.07% | - The company manages market risk from changes in the fair value of its Mortgage Servicing Rights (MSRs) through an economic hedge portfolio. A **50 basis point increase** in rates is estimated to have a net negative exposure of **$291 thousand** on the MSR portfolio and its hedge[127](index=127&type=chunk)[149](index=149&type=chunk) - For trading activities, the company uses Value at Risk (VaR) and Stressed VaR (SVaR) to measure potential losses. For Q1 2024, the average 10-day 99% VaR was **$5.1 million**[127](index=127&type=chunk)[152](index=152&type=chunk) [Controls and Procedures](index=44&type=section&id=Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal controls over financial reporting during the quarter - Management concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by this report[130](index=130&type=chunk) - No changes during the quarter were identified that have materially affected, or are reasonably likely to materially affect, the company's internal controls over financial reporting[130](index=130&type=chunk) [Consolidated Financial Statements – Unaudited](index=45&type=section&id=Consolidated%20Financial%20Statements%20%E2%80%93%20Unaudited) This section presents BOK Financial's unaudited consolidated financial statements as of March 31, 2024, including statements of earnings, balance sheets, and cash flows, with detailed notes Consolidated Statement of Earnings Highlights (Three Months Ended Mar 31) | (In thousands) | 2024 | 2023 | | :--- | :--- | :--- | | Net Interest Revenue | $293,572 | $352,348 | | Provision for Credit Losses | $8,000 | $16,000 | | Total Other Operating Revenue | $161,701 | $177,865 | | Total Other Operating Expense | $340,384 | $305,812 | | **Net Income** | **$83,694** | **$162,496** | Consolidated Balance Sheet Highlights | (In thousands) | Mar 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Assets | $50,160,380 | $49,824,830 | | Loans, net | $23,890,937 | $23,627,845 | | Total Deposits | $35,383,547 | $34,019,701 | | Total Shareholders' Equity | $5,128,751 | $5,142,442 | [Part II. Other Information](index=93&type=section&id=Part%20II.%20Other%20Information) [Legal Proceedings](index=93&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in litigation as Indenture Trustee for municipal bonds, but management does not expect a material effect on financial condition or results - BOKF, NA is subject to litigation concerning its role as Indenture Trustee for municipal bonds where Christopher Brogdon was the borrower. Claimants allege complicity in fraud[248](index=248&type=chunk) - Management is advised that a loss on these claims is not probable and does not expect the final outcomes to have a material effect on the company's financials[248](index=248&type=chunk) [Risk Factors](index=93&type=section&id=Item%201A.%20Risk%20Factors) No material changes were reported from the risk factors previously disclosed in the company's Annual Report on Form 10-K for 2023 - No material changes were reported from the risk factors set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 2023[296](index=296&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=93&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2024, the company repurchased 651,850 shares of common stock, with 616,630 shares under its publicly announced repurchase program Share Repurchases in Q1 2024 | Period | Total Shares Purchased | Average Price Paid | Shares Purchased Under Plan | | :--- | :--- | :--- | :--- | | Jan 2024 | 79,534 | $88.22 | 44,630 | | Feb 2024 | 425,000 | $82.73 | 425,000 | | Mar 2024 | 147,316 | $86.50 | 147,000 | | **Total** | **651,850** | **N/A** | **616,630** |

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 ...

Financial Data and Key Metrics Changes - The company reported earnings of $83.7 million or EPS of $1.29 per diluted share, with adjusted net income of $123.2 million and EPS of $1.91 per share after notable items [94] - First quarter net interest income was $293.6 million, with a linked quarter decrease of $3.1 million, and net interest margin at 2.61%, a 3 basis point decrease compared to Q4 [13][118] - Total fee income contributed $200.6 million, representing 41% of total revenue [114] Business Line Data and Key Metrics Changes - Healthcare business loans increased by 2.5% linked quarter, with a diversified portfolio primarily in senior housing [6] - Mortgage banking revenue increased by 48% to $19 million, driven by improvements in the mortgage origination market [10] - Commercial loans grew by 2.2% linked quarter, while commercial real estate (CRE) loans decreased by 1.9% [137] Market Data and Key Metrics Changes - The company operates in dynamic, high-growth markets, maintaining a loan-to-deposit ratio of 68%, which is below peers, providing significant liquidity [97] - Non-performing assets decreased by $25 million this quarter, with non-performing assets to period end loans decreasing to 51 basis points [7][101] Company Strategy and Development Direction - The company focuses on long-term profitability and sustainable value creation, with a diversified loan portfolio and strong credit quality [105] - Investments in high ROE fee income businesses have contributed to revenue diversity, with 41% of revenue coming from these businesses [9] - The company has a commercial real estate concentration limit of 185% of total commitments versus tier one capital, currently at approximately 22% [107] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong credit quality and expects to outperform peers in challenging credit cycles [96] - The company anticipates total loan growth of 5% to 7% for 2024, with net interest margin expected to stabilize and increase later in the year [118] - Management noted that while there are uncertainties in commercial real estate, they remain optimistic about overall commercial growth [17] Other Important Information - The company repurchased over 616,000 shares this quarter, reflecting long-term confidence in the company [108] - A special assessment of $6.5 million from the FDIC is expected in June, following a previous assessment of $43.8 million [116] Q&A Session Summary Question: Can you provide more color on criticized and problem loans? - Management indicated that there are no systemic issues in any particular portfolio, and they have effectively managed criticized and classified loans [20] Question: What is the outlook for net charge-offs in the second half of the year? - Management does not anticipate higher net charge-offs, expecting consistency with recent quarters based on current credit quality [127] Question: How is the competitive landscape in core lending businesses? - Management noted that regional banks are starting to re-enter the market, but the company has benefited from competitors pulling back [64] Question: What drove the notable deposit growth this quarter? - The company attributed deposit growth to proactive offers to existing customers and effective management of liquid assets [161] Question: How does the company view the impact of potential rate cuts on margins? - Management believes that the margin has reached its trough and expects stability and potential increases later in the year, regardless of rate cuts [132]

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 ...