BOK Financial(BOKF)2025-01-17 22:06Earnings and Net Income - Annual earnings for 2024 were $524 million, or $8.14 per share, with Q4 earnings of $136 million, or $2.12 per share[1] - Net income attributable to BOK Financial Corporation shareholders for Q4 2024 was $136.154 million, up from $82.575 million in Q4 2023[48] - Net income per diluted share for Q4 2024 was $2.12, up from $1.26 in Q4 2023[48] - Net income attributable to BOK Financial Corporation shareholders for Q4 2024 was $136.154 million, compared to $139.999 million in Q3 2024[49] Net Interest Income and Margin - Net interest income for Q4 2024 increased by $4.9 million to $313.0 million, with a net interest margin of 2.75%, up 7 basis points from the prior quarter[1][4] - Net interest income for Q4 2024 increased to $313.046 million, up from $296.675 million in Q4 2023[48] - Net interest income for Q4 2024 was $313.046 million, showing a slight increase from $308.119 million in Q3 2024[49] - Net interest margin increased to 2.75% in Q4 2024 from 2.68% in Q3 2024[50] - The tax-equivalent net interest margin for BOK Financial Corporation was 2.75% in December 2024, up from 2.64% in December 2023[62] - Net interest income excluding trading activities increased to $308.398 million in Q4 2024 from $304.368 million in Q3 2024[54] - Net interest margin on average interest-earning assets excluding trading activities rose to 3.09% in Q4 2024 from 3.02% in Q3 2024[54] Fees and Commissions Revenue - Fees and commissions revenue grew by $4.4 million to $206.9 million in Q4 2024, driven by higher brokerage and trading revenue[1][8] - Total fees and commissions for Q4 2024 were $206.938 million, up from $196.790 million in Q4 2023[48] - Total fees and commissions for Q4 2024 were $206.938 million, up from $202.494 million in Q3 2024[49] Loans and Deposits - Period-end loans increased by $130 million to $24.1 billion, with commercial loan growth partially offset by a decrease in commercial real estate loans[1] - Average deposits grew by $1.1 billion to $37.8 billion in Q4 2024, with period-end deposits reaching $38.2 billion[1] - Outstanding loans increased by $130 million to $24.1 billion at December 31, 2024, driven by growth in commercial loans and loans to individuals, partially offset by a decrease in commercial real estate loans[15] - Period end deposits increased by $964 million to $38.2 billion, with interest-bearing transaction accounts rising $1.1 billion[23] - Total loans as of December 31, 2024, stood at $24.024 billion, slightly down from $24.305 billion in September 2024[47] - Total deposits increased to $37.819 billion in Q4 2024, compared to $36.760 billion in Q3 2024[47] - Total loans increased to $24,114,724 thousand in Q4 2024, up from $23,904,968 thousand in Q4 2023, reflecting a growth of 0.88% year-over-year[58] - Total deposits for BOK Financial Corporation increased to $38.19 billion as of December 31, 2024, up from $34.02 billion in December 2023, reflecting a growth of 12.3% year-over-year[61] Nonperforming Assets and Loan Quality - Nonperforming assets reached a historic low of $49 million, or 0.20% of outstanding loans, in Q4 2024, down from $87 million in the prior quarter[1] - Nonperforming assets decreased to $49 million, or 0.20% of outstanding loans, compared to $87 million, or 0.36%, at September 30, 2024[29] - Nonperforming assets decreased to $48.98 million in Q4 2024 from $86.94 million in Q3 2024, a 43.7% decline[63] - Total nonaccruing loans dropped to $46.73 million in Q4 2024 from $84.32 million in Q3 2024, a 44.6% decrease[63] - Net charge-offs in Q4 2024 were $528 thousand, compared to net recoveries of $54 thousand in Q3 2024[63] - Allowance for loan losses to nonaccruing loans ratio improved to 701.46% in Q4 2024 from 365.65% in Q3 2024[64] - Nonperforming assets to period end loans and repossessed assets ratio decreased to 0.20% in Q4 2024 from 0.36% in Q3 2024[64] Capital and Ratios - The company's common equity Tier 1 capital ratio was 13.03% at December 31, 2024, up from 12.73% at September 30, 2024[26] - Common equity Tier 1 capital ratio improved to 13.03% in Q4 2024 from 12.73% in Q3 2024[50] - Return on average assets for Q4 2024 was 1.07%, slightly down from 1.09% in Q3 2024[50] - Book value per share rose to $86.53 in Q4 2024 from $87.53 in Q3 2024[50] - Dividend payout ratio for Q4 2024 was 26.75%, up from 25.11% in Q3 2024[50] - Efficiency ratio improved to 65.61% in Q4 2024 from 65.11% in Q3 2024[50] - Tangible common equity ratio improved to 9.17% in Q4 2024 from 9.22% in Q3 2024[52] - Return on average tangible common equity decreased to 12.09% in Q4 2024 from 12.80% in Q3 2024[52] - Efficiency ratio increased to 65.61% in Q4 2024 from 65.11% in Q3 2024[52] - Pre-provision net revenue remained stable at $175.434 million in Q4 2024 compared to $175.312 million in Q3 2024[52] Sector-Specific Loan Performance - Commercial loan balances increased by $152 million, with general business loans rising $136 million to $4.2 billion, representing 17% of total loans[16] - Energy loan balances increased by $128 million to $3.3 billion, representing 13% of total loans, with 70% secured by oil-producing properties[17] - Services sector loan balances increased by $70 million to $3.6 billion, representing 15% of total loans[18] - Healthcare sector loan balances decreased by $182 million to $4.0 billion, representing 16% of total loans[19] - Commercial real estate loan balances decreased by $130 million to $5.1 billion, representing 21% of total loans, with a $128 million increase in multifamily property loans[20] - Loans to individuals increased by $108 million to $4.0 billion, representing 17% of total loans[21] - Commercial loans in Texas decreased slightly to $7,411,416 thousand in Q4 2024 from $7,437,800 thousand in Q3 2024, a decline of 0.35% quarter-over-quarter[59] - Commercial real estate loans in Oklahoma increased to $513,101 thousand in Q4 2024, up from $557,025 thousand in Q3 2024, a decrease of 7.88% quarter-over-quarter[59] - Loans to individuals in Colorado decreased to $213,768 thousand in Q4 2024 from $216,938 thousand in Q3 2024, a decline of 1.46% quarter-over-quarter[59] - Total loans in Arizona remained stable at $2,396,534 thousand in Q4 2024, compared to $2,398,648 thousand in Q3 2024, a slight decrease of 0.09% quarter-over-quarter[59] - Commercial loans in New Mexico increased to $325,246 thousand in Q4 2024 from $324,605 thousand in Q3 2024, a growth of 0.20% quarter-over-quarter[59] - Loans to individuals in Arkansas increased to $11,628 thousand in Q4 2024 from $12,233 thousand in Q3 2024, a decrease of 4.95% quarter-over-quarter[59] - Total loans in Kansas/Missouri increased to $986,106 thousand in Q4 2024 from $903,318 thousand in Q3 2024, a growth of 9.16% quarter-over-quarter[59] - Commercial loans in Arkansas increased to $130,772 thousand in Q4 2024 from $128,842 thousand in Q3 2024, a growth of 1.50% quarter-over-quarter[59] - Total loans in New Mexico increased to $788,166 thousand in Q4 2024 from $775,153 thousand in Q3 2024, a growth of 1.68% quarter-over-quarter[59] Wealth Management and Fiduciary Assets - Wealth Management contributed $48.9 million to net income before taxes in Q4 2024, an increase of $10.1 million over Q3 2024[41] - Assets under management or administration in Wealth Management were $114.6 billion, an increase of $3.9 billion, or 4%[41] - Combined net interest income and fee revenue in Wealth Management increased $10.8 million in Q4 2024[41] - Fiduciary assets increased 6.7% to $67.98 billion in Q4 2024 from Q3 2024[65] - Assets under management or administration rose 3.5% to $114.62 billion in Q4 2024 compared to Q3 2024[65] Mortgage Production and Realized Margin - Mortgage production revenue decreased to $1.282 million in Q4 2024 from $1.563 million in Q3 2024, a decline of 18%[51] - Total mortgage production volume dropped to $174.788 million in Q4 2024 from $231.891 million in Q3 2024, a decrease of 25%[51] - Mortgage loan refinances as a percentage of mortgage loans funded for sale increased to 19% in Q4 2024 from 11% in Q3 2024[51] - Realized margin on funded mortgage loans decreased to 0.87% in Q4 2024 from 0.93% in Q3 2024[51] Regional Deposit Performance - Oklahoma deposits grew to $19.61 billion in December 2024, a 15.3% increase compared to $17.00 billion in December 2023[60] - Texas deposits reached $9.22 billion in December 2024, up 15.4% from $7.99 billion in December 2023[60] - Colorado deposits totaled $3.59 billion in December 2024, a 6.2% decrease from $3.82 billion in December 2023[60] - New Mexico deposits increased to $2.40 billion in December 2024, up 18.1% from $2.03 billion in December 2023[60] - Arizona deposits remained stable at $1.78 billion in December 2024, compared to $1.75 billion in December 2023[60] - Kansas/Missouri deposits grew to $1.50 billion in December 2024, a 12.5% increase from $1.33 billion in December 2023[61] - Arkansas deposits increased to $95.73 million in December 2024, up 9.6% from $87.30 million in December 2023[61] Operating Expenses and Personnel Costs - Operating expenses rose by $6.6 million to $347.7 million in Q4 2024, with personnel expenses increasing by $3.9 million due to higher trading activity[12][13] Yield and Funding Costs - The yield on average earning assets decreased by 30 basis points to 5.59% in Q4 2024, reflecting Federal Reserve rate cuts[6] - Funding costs decreased by 42 basis points to 3.69% in Q4 2024, with interest-bearing deposit costs down 31 basis points to 3.48%[7] - The yield on loans increased to 7.10% in December 2024, compared to 7.45% in December 2023[62] Net Unrealized Loss on Securities - Net unrealized loss on available for sale securities increased to $537.335 million in Q4 2024 from $307.360 million in Q3 2024[50] Commercial Banking Performance - Commercial Banking contributed $160.4 million to net income before taxes in Q4 2024, a decrease of $12.3 million compared to Q3 2024[39] - Average loans in Commercial Banking decreased $344 million, or 2%, to $20.0 billion in Q4 2024[39] - Average deposits in Commercial Banking grew $811 million, or 5%, to $17.9 billion in Q4 2024[39] - Commercial Banking net interest income declined 3.8% to $199.74 million in Q4 2024 compared to Q3 2024[65] Consumer Banking Performance - Consumer Banking contributed $23.6 million to net income before taxes in Q4 2024, a decrease of $1.2 million compared to the prior quarter[40] - Average loans in Consumer Banking increased $89 million, or 4%, to $2.1 billion in Q4 2024[40] - Average deposits in Consumer Banking increased $61 million, or 1%, to $8.2 billion in Q4 2024[40] - Consumer Banking net interest income increased slightly by 0.3% to $65.49 million in Q4 2024[65] Total Assets and Liabilities - Total assets as of December 31, 2024, were $50.615 billion, down from $51.157 billion in September 2024[47] - Total liabilities as of December 31, 2024, were $45.036 billion, down from $45.707 billion in September 2024[47] - Interest-bearing cash and cash equivalents increased to $546.955 million in Q4 2024, up from $531.811 million in Q3 2024[47] Other Operating Revenue - Total other operating revenue for Q4 2024 was $210.044 million, compared to $204.883 million in Q4 2023[48] Brokerage and Trading Revenue - Brokerage and trading revenue increased by $5.1 million to $55.5 million in Q4 2024, driven by higher trading volumes[8][9]