BOK Financial (BOKF) Rides on Loan & Credit Quality as Costs Rise

Core Viewpoint - BOK Financial is demonstrating strong credit quality metrics, with a significant decline in non-performing assets and net charge-offs, positioning the company favorably amid economic slowdown expectations [1] Financial Performance - The company's shares have increased by 4.3% over the past six months, contrasting with a 10.2% decline in the industry [2] - As of March 31, 2023, BOK Financial had total debt of $8.1 billion and cash and cash equivalents of $1.43 billion, indicating potential liquidity issues [5] - BOK Financial's net interest income has shown steady growth due to high interest rates, although net interest margin has recently declined due to deposit repricing [10] Growth Prospects - The company is well-positioned for organic growth, supported by steady loan demand, high interest rates, and a robust deposit balance [9] - Management anticipates loan growth in the mid-to-upper single-digit range and modest growth in deposit balances for 2024 [11] Expense Management - Despite positive growth indicators, BOK Financial faces elevated expenses due to ongoing investments in technology, with expectations for mid-single digit expense growth in 2024 [4]