BOK Financial(US:BOKF)2024-07-31 18:05Financial Performance - BOK Financial reported net income of $163.7 million or $2.54 per diluted share for Q2 2024, up from $83.7 million or $1.29 per diluted share in Q1 2024[6]. - Total net income for Q2 2024 was $163.7 million, a significant increase of 96% from $83.7 million in Q1 2024[55]. - The company reported a net gain of $57.4 million in the second quarter of 2024, significantly up from $4.3 million in the first quarter, driven by a $53.8 million pre-tax gain on Visa shares[40]. - Net income for the three months ended June 30, 2024, was $163,732 thousand, compared to $151,636 thousand for the same period in 2023, representing an increase of 7.3%[184]. - Earnings per share increased to $2.54, up from $1.29 in the previous quarter, indicating strong earnings growth[152]. Revenue and Income Sources - Net interest income for Q2 2024 totaled $296.0 million, an increase of $2.4 million from the prior quarter, with a net interest margin of 2.56% compared to 2.61% in Q1 2024[6]. - Tax-equivalent net interest income for the second quarter of 2024 was $2,449 million, a decrease of $85,016 million compared to the previous period[22]. - Other operating revenue increased to $259.7 million in Q2 2024, up by $98.0 million from Q1 2024, driven by a $53.8 million pre-tax gain from Visa B shares conversion[24]. - Total fees and commissions revenue for the second quarter was $200.0 million, showing a slight decrease of $537, remaining stable compared to the previous quarter[25]. - Total interest revenue for the six months ended June 30, 2024, was $1,317,029 thousand, up from $1,087,096 thousand in 2023, reflecting a growth of 21.1%[183]. Loan and Deposit Growth - Outstanding loan balances grew to $24.6 billion at June 30, 2024, an increase of $381 million from March 31, 2024, primarily due to growth in commercial loans[8]. - Period end deposits reached $36.2 billion at June 30, 2024, an increase of $858 million over March 31, 2024, with average deposits rising by $627 million[9]. - Average outstanding balance of loans attributed to Commercial Banking increased by $337 million or 2% to $20.4 billion in Q2 2024[59]. - Average deposits attributed to Commercial Banking increased by $459 million or 3% to $16.2 billion in Q2 2024[59]. - Total deposits reached $36,241 million as of June 30, 2024, up from $35,384 million in the previous quarter[136]. Credit Quality and Loss Provisions - The provision for credit losses was $8.0 million in Q2 2024, reflecting continued loan growth and a stable economic forecast[8]. - Net loans charged off increased to $6.1 million in Q2 2024, up 47% from $4.2 million in Q1 2024[58]. - The allowance for loan losses totaled $288 million, representing 1.17% of outstanding loans as of June 30, 2024[113]. - Total nonperforming assets decreased to $93.017 million as of June 30, 2024, down from $122.375 million on March 31, 2024[122]. - Nonaccruing loans decreased by $29 million compared to March 31, 2024, with new nonaccruing loans identified totaling $24 million[123]. Operating Expenses - Total operating expenses for the six months ended June 30, 2024, were $677.1 million, an increase of $52.6 million compared to the same period in 2023[13]. - Other operating expenses for Q2 2024 totaled $336.7 million, a decrease of $3.7 million compared to Q1 2024, with an efficiency ratio of 59.83%[45]. - Personnel expenses decreased by $11.6 million compared to Q1 2024, primarily due to a $7.1 million decrease in cash-based incentive compensation[46]. - Operating expenses increased by $6.0 million or 9% compared to Q1 2024, primarily due to an increase in other expenses[58]. - Total other operating expense for the three months ended June 30, 2024, was $336,690 thousand, compared to $318,673 thousand in 2023, reflecting an increase of 5.7%[183]. Capital and Equity - The tangible common equity ratio improved to 8.38% at June 30, 2024, up from 8.21% at March 31, 2024[10]. - Common equity Tier 1 capital ratio was 12.10% at June 30, 2024, compared to 11.99% at March 31, 2024[10]. - The company’s equity capital was $5.2 billion, reflecting a $100 million increase from March 31, 2024[144]. - Total shareholders' equity increased to $5,229,130 million, up from $5,128,751 million in the previous period[152]. - Return on average equity was 12.79% for the quarter ended June 30, 2024, compared to 6.53% for the previous quarter[148]. Market and Economic Outlook - The company anticipates growth in operating revenues through new product offerings and market expansion, despite potential economic and regulatory challenges[26]. - The probability-weighted economic scenario forecast includes a 50% base case, 35% downside, and 15% upside, with GDP growth projected at 1.7% over the next 12 months[117]. - A stress test measures market risk from interest rate changes, with a $20 million market risk limit approved for mortgage servicing rights net of economic hedges[165]. - The company has implemented strategies to manage balance sheet exposure to interest rate changes within established policy limits[160]. - Forward-looking statements indicate that actual results may differ due to various risks and uncertainties, including changes in interest rates and market conditions[180].