Core Viewpoint - BOK Financial (BOKF) reported quarterly earnings of $1.86 per share, missing the Zacks Consensus Estimate of $2.01 per share, and showing a decline from $1.91 per share a year ago, indicating an earnings surprise of -7.46% [1][2] Financial Performance - The company posted revenues of $502.29 million for the quarter ended March 2025, which was 3.13% below the Zacks Consensus Estimate, compared to $455.27 million in the same quarter last year [2] - Over the last four quarters, BOK Financial has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - BOK Financial shares have declined approximately 14.4% since the beginning of the year, while the S&P 500 has decreased by 10.2% [3] - The current estimate revisions trend for BOK Financial is unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $2.10 on revenues of $533.8 million, and for the current fiscal year, it is $8.60 on revenues of $2.16 billion [7] - The outlook for the industry, particularly the Banks - Southwest sector, is favorable, ranking in the top 11% of over 250 Zacks industries, suggesting potential for better performance compared to lower-ranked industries [8]

Financial Performance - Net income for the first quarter of 2025 was $119.8 million, or $1.86 per diluted share, down from $136.2 million, or $2.12 per diluted share in the prior quarter[1]. - Net income attributable to BOK Financial Corporation shareholders rose to $119,777 thousand in Q1 2025, up 43% from $83,703 thousand in Q1 2024[45]. - Net income attributable to BOK Financial Corporation shareholders was $119,777,000, down from $136,154,000 in the previous quarter[49]. - Basic and diluted net income per share increased to $1.86 in Q1 2025, up from $1.29 in Q1 2024, representing a growth of 44.3%[45]. - Commercial Banking net income before taxes was $140.0 million, a decrease of $20.4 million from Q4 2024, with net interest income and fee revenue down by $22.9 million[36]. - Consumer Banking contributed $22.1 million to net income before taxes, a decrease of $1.5 million from the prior quarter, with average loans increasing by $59 million, or 3%[37]. - Wealth Management's net income before taxes was $32.7 million, down $16.2 million from Q4 2024, with average deposits increasing by $719 million, or 7%[38]. Revenue and Income Sources - Net interest income increased by $3.2 million to $316.3 million, with a net interest margin expanding to 2.78% from 2.75% in the previous quarter[1][3]. - Fees and commissions revenue decreased by $22.8 million to $184.1 million, primarily due to a $24.4 million drop in brokerage and trading revenue[1][7]. - Mortgage banking revenue increased by $1.7 million, supported by higher production as client demand begins to grow[9]. - Total other operating revenue for Q1 2025 was $186,041 thousand, an increase from $161,701 thousand in Q1 2024, marking a growth of 15.0%[45]. - Total other operating revenue decreased to $186,041 in Q1 2025 from $210,044 in Q4 2024, a decline of 11.43%[46]. Loan and Deposit Trends - Average outstanding loan balances rose by $44 million to $24.1 billion, driven by growth in commercial real estate loans and loans to individuals[1][4]. - Outstanding loans totaled $23.7 billion at March 31, 2025, a decrease of $424 million or 1.8% compared to December 31, 2024, primarily due to a decline in commercial loans[14]. - Total deposits increased to $38.3 billion at March 31, 2025, with interest-bearing transaction accounts increasing by $207 million[23]. - Period end deposits grew by $90 million to $38.3 billion, while average deposits increased by $540 million to $38.4 billion[1]. - The loan to deposit ratio was 62% at March 31, 2025, compared to 63% at December 31, 2024, indicating strong liquidity[22]. Asset Quality and Credit Risk - Nonperforming assets increased to $85 million, or 0.36% of outstanding loans, compared to $49 million, or 0.20%, at the end of the previous quarter[1]. - The allowance for loan losses to period-end loans was 1.18% in Q1 2025, slightly up from 1.17% in Q1 2024, showing a stable credit quality[62]. - The provision for credit losses was zero in Q1 2025, compared to $8,000 thousand in Q1 2024[45]. - Total nonaccruing loans increased to $83.520 million in Q1 2025, compared to $46.725 million in Q4 2024, marking an increase of 78.6%[61]. - The total provision for credit losses was reported as $0 in Q1 2025, down from $2 million in Q3 2024, suggesting improved credit conditions[61]. Capital and Equity - The tangible common equity ratio improved to 9.48% from 9.17% at the end of the previous quarter[1]. - The company's common equity Tier 1 capital ratio was 13.31% at March 31, 2025, up from 13.03% at December 31, 2024[25]. - Period end shareholders' equity increased to $5,771,813 in Q1 2025 from $5,548,353 in Q4 2024, an increase of 4.02%[47]. - Book value per share rose to $89.82 in Q1 2025, up from $86.53 in Q4 2024, an increase of 2.64%[47]. Market and Economic Conditions - The fair value of the available-for-sale securities portfolio increased by $251 million to $13.1 billion at March 31, 2025, with a net unrealized loss of $364 million[31]. - The trading securities portfolio totaled $5.9 billion at March 31, 2025, an increase from $4.9 billion at December 31, 2024[32]. - The total cost of interest-bearing liabilities decreased to 3.42% in Q1 2025 from 4.08% in Q1 2024, reflecting a year-over-year decline of 0.66%[60]. - The tax-equivalent net interest margin for BOK Financial Corporation increased to 2.78% in Q1 2025, up from 2.61% in Q1 2024, reflecting a year-over-year improvement of 0.17%[60].

Group 1 - BOK Financial is perceived as a lender with high exposure to the energy sector, prompting a closer examination of its balance sheet [1] - The investment group European Small Cap Ideas focuses on high-quality small-cap investment opportunities in Europe, emphasizing capital gains and dividend income [1] - The group offers two model portfolios: the European Small Cap Ideas portfolio and the European REIT Portfolio, along with weekly updates and educational content [1] Group 2 - The article does not provide any specific financial data or performance metrics related to BOK Financial or the investment group [1]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for BOK Financial, with a focus on how actual results compare to estimates, which could significantly impact stock price [1][2]. Earnings Expectations - BOK Financial is expected to report quarterly earnings of $2.01 per share, reflecting a year-over-year increase of +5.2% [3]. - Revenues are projected to be $518.5 million, representing a 13.9% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4]. - The Most Accurate Estimate for BOK Financial is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.50%, suggesting a bearish sentiment among analysts [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict deviations from consensus estimates, with a strong predictive power for positive readings [6][8]. - BOK Financial's current Zacks Rank is 3, making it challenging to predict an earnings beat conclusively [11]. Historical Performance - In the last reported quarter, BOK Financial exceeded expectations by delivering earnings of $2.12 per share against an expected $1.97, resulting in a surprise of +7.61% [12]. - The company has beaten consensus EPS estimates in each of the last four quarters [13]. Industry Comparison - BancFirst, another player in the Southwest banking industry, is expected to report earnings of $1.58 per share, with a year-over-year change of +5.3% and revenues of $159.9 million, up 5.9% [17]. - BancFirst has an Earnings ESP of 2.22% but carries a Zacks Rank of 4 (Sell), complicating predictions for an earnings beat [18].

Company Overview - BOK Financial (BOKF) is headquartered in Tulsa and operates in the Finance sector, with a stock price change of -3.57% since the start of the year [3] - The company currently pays a dividend of $0.57 per share, resulting in a dividend yield of 2.22%, which is higher than the Banks - Southwest industry's yield of 1.16% and the S&P 500's yield of 1.57% [3] Dividend Performance - BOK Financial's current annualized dividend of $2.28 represents a 2.7% increase from the previous year [4] - Over the last 5 years, the company has increased its dividend 5 times, averaging an annual increase of 2.01% [4] - The current payout ratio is 28%, indicating that the company paid out 28% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for BOK Financial's earnings in 2025 is $8.60 per share, with an expected increase of 4.37% from the previous year [5] Investment Considerations - BOK Financial is viewed as an attractive dividend play and a compelling investment opportunity, holding a Zacks Rank of 2 (Buy) [7] - Income investors are generally attracted to dividends for various reasons, including tax advantages and reduced portfolio risk [6]

Core Viewpoint - BOK Financial Corporation (BOKF) is positioned for organic growth due to steady loan demand, robust deposit balances, and solid credit quality, although rising expenses are a concern [1]. Factors Aiding BOKF - **Loan & Deposits Growth**: BOKF has experienced continuous loan growth with a compound annual growth rate (CAGR) of 2% from 2018 to 2024, despite a decline in 2021. Deposits have shown a rising trend with a six-year CAGR of 7.1% [2]. - **Improving Asset Quality**: The company has seen a significant decline in non-performing assets with a negative CAGR of 24.6% over five years, and net charge-offs (NCOs) have also decreased with a negative CAGR of 40.9% during the same period [3]. - **Steady Capital Distribution**: BOKF has consistently increased dividends, with a 3.6% hike to 57 cents per share in October 2024. The company also has a share repurchase authorization of 5 million shares, with 1.54 million shares remaining as of December 31, 2024 [4]. What's Hurting BOK Financial - **Escalating Expenses**: Operating expenses have risen with a CAGR of 3.4% over the last six years, driven by investments in technology and increased employee compensation [5]. - **Loan Concentration**: A significant portion of BOKF's loan portfolio consists of commercial loans, which make up 62.3% of total loans as of December 31, 2024. This concentration may pose risks if the economic environment deteriorates [6]. BOKF Price Performance & Zacks Rank - BOKF shares have increased by 29.1% over the past year, slightly outperforming the industry average of 28.8% [7]. The company currently holds a Zacks Rank of 1 (Strong Buy) [9]. Peers Worth Considering - Other top-ranked bank stocks include BancFirst Corporation (BANF) and Cullen/Frost Bankers, Inc. (CFR), both of which have seen upward revisions in earnings estimates and significant share price gains over the past year [10][11].

Here are two stocks with buy rank and strong income characteristics for investors to consider today, February 25th:BOK Financial (BOKF) : This regional financial services company which provides various financial products and services in Oklahoma, Texas, New Mexico, Northwest Arkansas, Colorado, Arizona, and Kansas/Missouri, has witnessed the Zacks Consensus Estimate for its current year earnings increasing 4% over the last 60 days.This Zacks Rank #1 (Strong Buy) company has a dividend yield of 2.1%, compare ...

Financial Performance - Net income for the year ended December 31, 2024, totaled $523.6 million, or $8.14 per diluted share, compared to $530.7 million, or $8.02 per diluted share, for 2023[144]. - Net interest income for 2024 was $1.2 billion, a decrease of $61.4 million compared to the prior year, with a net interest margin of 2.65%[144]. - Fees and commissions revenue grew to $810.0 million for 2024, an increase of $28.9 million over 2023, driven by fiduciary and asset management revenue growth of $23.5 million[144]. - Other gains, net, were $79.7 million for 2024, including a $56.9 million pre-tax gain from Visa C shares received[144]. - Losses on available for sale securities totaled $45.8 million for 2024, compared to $30.6 million in the prior year[144]. - Other operating expenses increased by $32.9 million to $1.4 billion, with personnel expenses growing by $44.6 million[144]. - The return on average assets was 1.03% for 2024, down from 1.10% in 2023[140]. - The return on average shareholders' equity was 9.82% for 2024, compared to 10.82% in 2023[140]. - The dividend payout ratio was 27.20% for 2024, slightly up from 27.00% in 2023[140]. - The provision for credit losses was $18.0 million in 2024, with net charge-offs of $12.9 million or 0.05% of average loans, compared to $18.1 million or 0.08% in 2023[146]. Assets and Liabilities - Total assets as of December 31, 2024, amount to $50,749,498, with total earning assets at $45,538,838 generating net interest income of $1,210,758[168]. - Total interest-bearing liabilities amount to $35,538,618, with a net interest income to earning assets ratio of 2.65%[168]. - The tangible common equity ratio improved to 9.17% at December 31, 2024, up from 8.29% at December 31, 2023[146]. - Average outstanding loan balances increased by $1.0 billion to $24.2 billion, driven by a $741 million increase in commercial loans and a $394 million increase in loans to individuals[146]. - Average deposits rose by $3.1 billion to $36.3 billion, with average interest-bearing deposits increasing by $5.4 billion[146]. Revenue Streams - Mortgage production revenue for 2024 was $8.739 million, a significant increase from a loss of $5.339 million in 2023[194]. - Total mortgage production volume reached $814.070 million in 2024, up from $655.682 million in 2023, representing a 24% increase[194]. - Mortgage servicing revenue increased to $65.368 million in 2024, compared to $61.037 million in 2023, reflecting a 7% growth[194]. - Brokerage and trading revenue decreased by $22.5 million, or 9%, to $218.1 million in 2024 compared to 2023[180]. - Transaction card revenue increased by $2.0 million, or 2%, totaling $108.9 million in 2024[186]. - Fiduciary and asset management revenue rose by $23.5 million, or 11%, reaching $230.9 million in 2024[188]. - Deposit service charges and fees increased by $10.2 million, or 9%, totaling $118.7 million in 2024[192]. - Customer hedging revenue decreased by $8.8 million, or 24%, totaling $27.7 million in 2024[182]. - Investment banking fees increased by $6.1 million, or 14%, totaling $49.1 million in 2024[183]. - Retail brokerage revenue increased by $3.5 million, or 22%, totaling $19.4 million in 2024[184]. Operational Insights - BOK Financial employs 5,056 full-time and part-time employees, with the majority being full-time[30]. - The company operates three principal segments: Commercial Banking, Consumer Banking, and Wealth Management[24]. - The company continues to evaluate and deploy emerging technologies like AI, which present both opportunities and regulatory compliance challenges[103]. - The company is heavily reliant on third-party vendors for critical infrastructure, which poses risks of operational errors and system interruptions[104]. - Cybersecurity risks have increased significantly, necessitating robust risk management programs to protect customer data and maintain operational integrity[99]. - The company has not experienced material losses from cyber attacks to date, but the risk remains heightened, and ongoing investment in cybersecurity measures is a priority[102]. Market Position and Strategy - The company holds 14% of total deposits in Oklahoma, with 30% market share in Tulsa and 13% in Oklahoma City[27]. - BOK Financial's acquisition strategy targets quality organizations with solid growth to supplement its principal lines of business[20]. - The company has a market share of approximately 1% in the Dallas-Fort Worth area and less than 1% in Houston[28]. - BOK Financial does not engage in foreign operations or lend to foreign governments, focusing solely on domestic markets[69]. - The company is subject to regulatory scrutiny regarding acquisitions and investments, which could limit growth opportunities[75]. Regulatory Environment - The company is subject to extensive regulations under federal and state laws, including the Dodd-Frank Act[32]. - The CFPB finalized a rule regulating overdraft fees, allowing institutions to cap fees at $5 or cover actual costs, effective October 1, 2025[46]. - BOKF, NA received an "outstanding" rating in its most recent CRA examination, exceeding the "satisfactory" requirement for new activities[46]. - The FDIC approved a special assessment of 3.36 basis points on certain banking organizations with over $5 billion in assets to recover costs from protecting uninsured depositors[56]. - The FDIC's plan aims to restore the DIF reserve ratio to at least 1.35% by September 30, 2028, with increased deposit insurance assessment rates effective January 1, 2023[55]. - Regulatory changes and compliance costs may increase as BOK Financial's asset size grows above $50 billion, impacting future growth potential[76]. Economic Factors - The unemployment rate increased slightly to 4.0% in December 2024, indicating ongoing economic challenges[66]. - The base case economic forecast predicts inflation will reach 2.4% by the end of 2025, with two additional federal funds rate cuts anticipated[67]. - BOK Financial's operations are influenced by regulatory policies, particularly those of the Federal Reserve, which aim to maximize employment and maintain price stability[65]. - The recent downgrade of the U.S. long-term credit rating from AAA to AA+ by Fitch Ratings could have material adverse impacts on financial markets and economic conditions[78]. - Prolonged inflation could negatively impact profitability by increasing funding costs and reducing consumer purchasing power, affecting demand for products and services[112]. Funding and Interest Rate Risks - Fluctuations in interest rates significantly affect BOK Financial's ability to originate new loans and manage net interest income[88]. - The company relies on external funding sources, and disruptions in the market could impair its ability to access necessary capital[94]. - Changes in mortgage interest rates directly impact BOK Financial's mortgage banking operations and revenue from mortgage servicing rights[89]. - Increased funding costs if deposits are lost or if there is a shift in deposit mix could negatively impact net interest margin and net income[95]. - Average interest-bearing deposits increased by $954 million, primarily from interest-bearing transaction accounts[171].

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